Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Nine Months Ended September 30, 2021
(Based on Japanese GAAP)
November 9, 2021
Company name:

Aoyama Zaisan Networks Co., Ltd.

Stock exchange listing: Tokyo
Stock code:
8929
Representative:
Inquiries:

URL

https://www.azn.co.jp/President
CFOMasazumi Hasumi
Shintaro HashibaScheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

November 9, 2021–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

Yes
No

TEL

03-6439-5800(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended September 30, 2021 (from January 1, 2021 to September 30, 2021)(1) Consolidated operating results (cumulative)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Nine months ended September 30, 2021
17,958
58.9
1,402
90.6
1,361 111.6
1,177 235.5
Nine months ended September 30, 2020
11,3048.1
736 (11.8)
643 (12.6)
350 (64.8)
Earnings per share

Diluted earnings per share

Yen
48.62
14.47

Nine months ended September 30, 2021
Nine months ended September 30, 2020

Yen
48.39
14.39

(2) Consolidated financial position
Total assets

Net assets

Millions of yen
16,53516,001

As of September 30, 2021
As of December 31, 2020

Equity ratio

Millions of yen
6,815
6,566

Net assets per share%
41.1
39.8

Yen
281.89262.392. Cash dividends
Annual dividends per share

Year ended December 31, 2020
Year ending December 31, 2021

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
20.00
22.00

Yen––

Yen
33.00

Yen
53.00

17.00

–

Year ending December 31, 2021 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

Net sales

Full year

Millions of yen
21,000Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
9.8
1,630
25.1
1,530
27.9
1,280
59.8
53.04

1

4. Notes(1) Changes in significant subsidiaries during the nine months ended September 30, 2021
(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoNo(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2021

24,354,800 shares As of December 31, 2020

24,284,800 shares

Number of treasury shares at the end of the period
As of September 30, 2021

220,248 shares As of December 31, 2020

248 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Nine months ended September 30, 2021

24,217,257 shares Nine months ended September 30, 20202

24,254,168 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Thousands of yen)
As of December 31, 2020

As of September 30, 2021

AssetsCurrent assets
Cash and deposits

9,428,038

8,989,594

Accounts receivable - trade
Real estate for sale521,733
319,452

426,715
1,075,872

Other inventories
Income taxes receivable

891
40,281

1,835
–

Other
Allowance for doubtful accounts

330,410(944)

653,640(4,322)

10,639,863

11,143,334

2,483,214
195,666

2,395,939
195,666

133,971

116,550

2,812,852

2,708,156

Goodwill
Software37,158610,386

30,469528,991

Other

29,44027,816

Total intangible assets

676,985

587,277

1,154,492
32,472

1,588,112
34,238296,599
388,644

108,690
365,700

1,872,208

2,096,742

5,362,046

5,392,176

16,001,910

16,535,511

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Shares of subsidiaries and associates
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Total assets3

(Thousands of yen)
As of December 31, 2020

As of September 30, 2021

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings139,105
100,000

193,447
100,000

1,021,295
434,000

1,258,430
312,000

Income taxes payable
Accounts payable - other39,575932,376

84,248334,150

Asset retirement obligations
Provision for bonuses

26,452––567,703

Other672,111406,753

3,364,915

3,256,734

Bonds payable
Long-term borrowings

412,000
4,203,597

210,000
4,636,905

Long-term leasehold and guarantee deposits received
Long-term accounts payable - other

1,397,871
57,281

1,559,058
57,281

Total non-current liabilities

6,070,750

6,463,244

9,435,666

9,719,978Shareholders' equity
Share capital

1,153,520

1,166,155

Capital surplus
Retained earnings

1,314,999
3,810,271

1,329,373
4,321,475(201)(167,951)

6,278,591

6,649,053

166,988(73,612)

191,614(37,493)

Current portion of long-term borrowings
Current portion of bonds payable

Total current liabilities
Non-current liabilities

Total liabilities
Net assets

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

4

93,375

154,121

193,620
656

6,094
6,263

6,566,243

6,815,532

16,001,910

16,535,511

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Thousands of yen)
Nine months ended
September 30, 2020

Nine months ended
September 30, 2021

Net sales

11,304,243

17,958,917

Cost of sales

8,926,748

14,745,114

Gross profit

2,377,495

3,213,803

Selling, general and administrative expenses

1,641,423

1,811,117

736,072

1,402,685

881

360

Dividend income
Foreign exchange gains

1,731
–

5,771
33,418

Share of profit of entities accounted for using equity method
Other

3,289
2,226

1,765
5,203

Total non-operating income

8,128

46,51947,85356,025

Commission expenses
Foreign exchange losses

12,70035,517

26,213
–

Other

4,651

5,596

100,72287,836643,478

1,361,368

Operating profit
Non-operating income
Interest income

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities–

23,097

Gain on reversal of share acquisition rights–

190,353

Total extraordinary income–

213,450

Impairment loss
Loss on valuation of golf club membership

46,967
11,549

9,822–

Total extraordinary losses

58,516

9,822

Profit before income taxes

584,961

1,564,996

Income taxes - current
Income taxes - deferred

70,009168,440

213,270
177,040

Total income taxes

238,450

390,311

Profit346,511

1,174,685

Extraordinary losses

Loss attributable to non-controlling interests(4,372)(2,653)

Profit attributable to owners of parent

350,883

1,177,338

5Consolidated statements of comprehensive income (cumulative)(Thousands of yen)
Nine months ended
September 30, 2020

Nine months ended
September 30, 2021

Profit346,511

1,174,685

Other comprehensive income
Valuation difference on available-for-sale securities(45,579)

24,625

Foreign currency translation adjustment(19,493)

36,119Total other comprehensive income(65,073)

60,745Comprehensive income

281,437

1,235,430

Comprehensive income attributable toComprehensive income attributable to owners of parent

285,8101,238,084(4,372)(2,653)Comprehensive income attributable to non-controllinginterests

6