Securities Code:8929

First Half Business Summary
for Fiscal Year 2019(29th period)

A

o

y

a

m

a

Z

a

is

a

n

N

et

w

o

rk

s

Januar y 1 to June 30, 2019

Highlights of Consolidated Business Results

To Our Shareholders
Net sales in the first half of fiscal year 2019 was ¥8,668 million, up 12.7% year on year.

Net sales increased due to opening locations of the“ADVANTAGE CLUB,”etc. but operating income fell year on year as we

However, as a result of proactive investment in systems to strengthen our technologicalhave invested in areas such as securing and training personnel and in strengthening our technological edge to continue meetingthe ever-growing needs.

edge and investment in securing and training personnel that has continued since last year

We are aiming for further growth by responding to the growing needs for property succession consulting through tie-ups

to meet the ever-increasing needs in the areas of property management and succession

with multiple financial institutions within Tokyo and responding to the needs for the social issues of business succession

and business succession, operating income fell 11.2% year on year to ¥638 million.

consulting through tie-ups with Nihon M&A Center Inc. and regional financial institutions across the country.
The conditions in our key businesses are as follows.
First, regarding property succession consulting, the property consulting support

Operating income

Net sales

operations for customers of financial institutions in the Tokyo metropolitan area have

8,668million yen

steadily expanded by accepting trainees from such financial institutions and actively
convening seminars. In addition, the book“How real estate owners and urban farmers can(Up 12.7% year-on-year

cope with real estate inheritance without it becoming negative property after 2020”was
published. Then, in the second half of fiscal year 2019, we will hold seminars on the topic

First half of fiscal yearof the social problem“How to safeguard property from dementia,”which caters to the

End of fiscal year (unit: million yen)

Next, regarding business succession consulting, we further advanced our collaboration
for nationwide expansion of our business succession service.
In addition, we are also putting efforts into second life support operations for managers

638million yen(Down 11.2% year-on-year

President

Masazumi Hasumi

14,42014,562

17,227

6,912

7,000

7,693

Fiscal Year 2016
(26th period)

Fiscal Year 2017(27th period)

Fiscal Year 2018
(28th period)First half of fiscal year

1,464

105.59

424

701

719

638

Fiscal Year 2017(27th period)

Fiscal Year 2018
(28th period)

Fiscal Year 2019(29th period)(forecast)

101.88(forecast)

1,094
751

(unit: yen)

End of fiscal year

1,600

(forecast)

8,668

46.91yen)

End of fiscal year (unit: million yen)First half of fiscal year

20,000needs of many of our customers.
with Nihon M&A Center Inc., and advanced with the establishment of a framework needed)

Net profit per share

66.74

49.75

46.34

26.38

46.45
46.91

35.16

following business succession. In the second half of fiscal year 2019, we will also advancecollaboration with leading accounting firms and are aiming for further enhancements.

Fiscal Year 2019(29th period)

Fiscal Year 2016
(26th period)

Fiscal Year 2016
(26th period)

Fiscal Year 2017(27th period)

Fiscal Year 2018
(28th period)

Fiscal Year 2019(29th period)

In terms of responding to property management needs, in addition to opening a new location for the real estate joint ownership
scheme“ADVANTAGE CLUB,”we made steady progress in our consultation services for buying real estate. In addition, we weresuccessful in receiving the order for the Tsuruga City project in Fukui Prefecture as a regional revitalization project. In addition to these
services, we are committed to developing overseas real estate products in order to meet the property management needs in thesecond half of fiscal year 2019.

Shareholder incentives

The Company provides shareholder incentives under the following conditions
to shareholders recorded in the shareholder register as of June 30.

Shareholders who hold 1,000 shares or more
Select 1 from 10 products worth 3,000 yen

Regarding the improvements in the administration framework, we strived to create an environment in which it is easy to work and to

Shareholders who hold 10,000 shares or more
continuously for over 1 year
A meal certificate from UKAI CO., LTD. (20,000 yen)or Ukai special select beef (worth 20,000 yen)

improve productivity through systemization of operations.
We strived to strengthen the organization to increase the speed and accuracy of developing products. Furthermore, we are also
taking initiatives over the full year to strengthen the compliance framework.

Dividends per shareFirst half of fiscal year

46.2％
(unit: yen)

ask for our shareholders’continuing support and cooperation.

11.0

Fiscal Year 2016
(26th period)

Fiscal Year 2017(27th period)

Dividend forecast

1

Sample images

Sample images

19.0

15.0
8.0

Lastly, we express our appreciation to our shareholders for their day to day support while we aim to live up to their expectations in
our future property consulting business. We will endeavor to continuously increase dividends as has been our policy from the past andEnd of fiscal year

45.0％

Dividend payout ratio

38.3％
25.0

42.6％

（forecast）

28.0（forecast）
17.0

14.0

Fiscal Year 2018
(28th period)

Fiscal Year 2019(29th period)

Fiscal year ending in December 2019:

45yen
2

Business Topics
We are enhancing our business base for our customers’property succession and business succession to deal withmarket changes.
As an independent professional organization with specialized expertise, we utilize the Company’s strengths in working
toward resolving our customers’property issues.

1

Property Succession

We provide solutions to deal with various concerns to protect our customers’important property when undertaking
succession.

▶Overall optimal inheritance measures▶︎Noteworthy“trust”consulting service

There have been various changes in areas such as the appraisal valueof our customers’inheritance tax and the use of land in property
administration due to Tax Reform and partial amendment to the
Productive Green Land Act in recent years. We quickly respond to suchchanges by supporting our customers
spanning two to three generations
with“overall optimization”consultingthat corresponds to the needs ofland-owning asset holders such as
business managers utilizing vast
areas of land.

Lifelong asset formation that considers era of people living
until they are 100 years or older is becoming an item of interestin the aging society and cases such as where property is notfreely utilized due to dementia, etc. have also become problems.
Therefore, we have implemented initiatives to resolve such
issues by providing “Korobanu saki no tsue® (prevention isbetter than cure) consulting service”as a property measure thatincorporates a “trust” method to prepare for the risk ofdementia.

2

Managing Properties

We have prepared diversified portfolios to meet the growing needs of our customers.

▶Overseas real estate▶Operating leases

To respond to needs for diversified investment, in thefirst half of fiscal year 2019, we opened a new location forthe“BRANZ SIMATUPANG”for Japanese representatives,
which has attracted attention in the rapidly growing
Indonesia, and we alsoplan to develop newinvestment products in
the United States andelsewhere in the second
half of fiscal year 2019.

In March, we newly established operatinglease products that use second-hand ships
as the assets. We aim to expand future
profits by creating stable products as partof our property consulting products.

▶Results of ADVANTAGE CLUBIn June, we opened a new location for our key product,
the real estate joint ownership scheme“ADVANTAGE
CLUB,”which is based on the Real Estate Specified Joint
Enterprise Act, in an urban center redevelopment area.
There has been steady growth since the start of thebusiness in 2002 with a cumulative total of 45 locations,
cumulative total assets under management of ¥60.11
billion, and 2,092 total participants (as of June 2019).

Business Succession

Given the growing number of small and medium-sized companies faced with the issue of a“lack of successor”due tolow birthrates and longevity, we provide decision-making opportunities at“business succession professional meetings”
and a wide range of options for business succession through collaboration with Nihon M&A Center Inc. to resolve theissues of company owners worried about succession in a one stop shop.
▶The Company’s strength and growing demand

Wide range of options through collaboration
with Nihon M&A Center Inc.
Jigyoushoukei Navigator Inc.
Succession of management
Succeed to relatives

Succeed to employees

M&A

Accumulate
know-how

Nihon M&A Center Inc.

3

3

Succession of property
Inheritance and donations▶We hold regular“business succession professional meetings”in Tokyo and Osaka

Business owners from morethan 50 companies haveparticipated during the 3 years
since we commenced
These are small group freeof charge meetings to clarify
directions through investigationand discussion of various
methods of succession.

Consolidated Financial Highlights
Consolidated Balance Sheet (Summary) (unit: million yen)
Total assets 12,353
Cash anddeposits
4,197

Interestbearing
liabilities
4,951❶Total assets 14,279
Cash anddeposits
6,099

D/E ratio
1.10 times

Realestatefor sale
4,052

Other
assets
4,104

Otherliabilities
2,884
Net assets
4,518
Equity ratio
36.5%

End of ﬁscal year 2018

Realestatefor sale
4,003
Other
assets4,176❷Interestbearing
liabilities
5,657
D/E ratio
1.01 times

Otherliabilities
2,969❸
Net assets
5,651
Equity ratio
39.2%

End of ﬁrst half of ﬁscal year 2019

❶Total assets

Total assets amounted to ¥14,279
million, up ¥1,925 million from theend of the previous period due toan increase in cash and deposits.

❷Interest-bearing liabilities

Interest-bearing liabilities amounted
to ¥5,657 million, up ¥706 million
from the end of the previous period
due to an increase in long-termloans payable.

❸Net assets

Net assets grew by ¥1,133 million
from the end of the previous period
to reach ¥5,651 million, due todisposal of treasury shares and anincrease in retained earnings.

Increase the Number of Customers andReinforce Our Internal Structure
We are actively recruiting consultants to meet the everincreasing needs for consulting in the areas of property
succession, business succession and property management.
We have also implemented initiatives for systemization to
improve productivity to meet the growing needs. We provide
highly productive standardized consulting by integrating theGroup’s consulting know-how into systems.
Number of consultants (persons)
Number of customers (persons)

102
847

End ofﬁscal year 2015

120

134

148
1,752

164
1,964

1,398
967

End ofﬁscal year 2016

End ofﬁscal year 2017

End ofﬁscal year 2018

End of ﬁrst half ofﬁscal year 20194

Special Feature

Our growing global network

CSR of Aoyama Zaisan Networks
Change the property of our customers into something meaningful

Succession while protecting the property ofasset holders and businesses. Change theproperty of our customers into somethingwith social value. We are involved in solvingsocial issues through administration andmanagement of our customers’property.

Main initiatives in the current fiscal year deeply rooted in CSR
The second regional
revitalization project

Obtained preferential negotiation rights in relation to“Tsuruga Station Western District Land Usage Enterprise”in Fukui Prefecture

We obtained preferential negotiation rights in relation to the public offering to the private
business operators of“Tsuruga Station Western District Land Usage Enterprise”implemented
by Tsuruga City, and made a business proposal by a group, which is represented by theCompany, and the hotel business operator HiF Resort Inc. (Komatsu City, Ishikawa Prefecture).
There is a plan for a facility that will be a bustling hub with interaction between residents
and visitors ahead of the opening of the Hokuriku Shinkansen Tsuruga Station in the spring of
2023. As the Company’s second regional revitalization program*, we plan to execute a basic
agreement with Tsuruga City around the summer of 2019 and commence operations of the
proposed facility in 2022.
Initiatives for the problem ofchildren on wait lists

Source: MARUZEN-YUSHODO Company, Limited*The image may change due to future discussion

Chubu

Hokkaido■ Aoyama Zaisan Networks Kanazawa (HATAKE Management Group)■ Kimura Business Succession Brain Co., Ltd. (KIMURA KEIEI BRAIN CO., LTD.)■ Aoyama Zaisan Networks Hokkaido Support (IKEWAKI TAX, ACCOUNTING & CONSULTANTS GROUP)■ Nihon Shisan Soken Co., Ltd. Sapporo (Mitsunari Accountant Office)Tohoku■ Aoyama Zaisan Networks Aomori Support (Konda Accounting Office)■ Aoyama Zaisan Networks Sendai Support (Asahi Accounting Office)■ Aoyama Zaisan Networks Yamagata Support (Yutaka Licensed Tax Accountant’s Corp)■ Zaisan Networks Fukushima Co., Ltd. (Aozora Tax Corporation)*About regional revitalization projects
Responsible for regional revitalization of regional towns and cities utilizing the Real EstateSpecified Joint Enterprise Act, planning construction projects wanted by residents such as
public facilities, hotels, and commercial facilities and the effective utilization of public land.

Supporting the proposal and construction of licensed kindergartens■ Zaisan Networks Tochigi Co., Ltd. (Tajima Accounting Office)■ Zaisan Networks Motegi Co., Ltd. (MOTEGI tax consultant office)■ Aoyama Zaisan Networks Mie Support (Midland Management Group Mie)

Kinki

Chugoku■ Zeimu Sogo Tax Corporation■ Aoyama Zaisan Networks Shimane Support (Chikashige Tax Office)■ Ikeda & Company Inc.

■ eclat Consulting■ Nakamura Certified Public Tax Accountants Office■ Humannetwork Inc. (Tokyo kaikei Partners Inc.)■ Kagayaki Zaisan Networks Co., Ltd. (Kagayaki Tax Corporation)■ Aoyama Zaisan Networks Yokohama Support (YAMADA SYNTHETIC OFFICE)■ Ai Partners Tax Corporation■ Masatoshi Yoshikawa Certified Tax Accountant Office■ OKAYAMA SOUKEN Consulting Co., Ltd. (OKAYAMA SOUKEN Tax Corporation)■ Hikasa Accounting Co., Ltd. (Hikasa Accounting Office)

Shikoku■ Zaisan Consultants Tokushima Co., Ltd. (M.A.S. AGENT GROUP)■ Midori Zaisan Consultants Co., Ltd. (Midori Tax Corporation)■ Oyama accounting Co., Ltd (Rita Tax Corporation)■ Top Accounting Firm & co
■ Koyama Certified Public Tax Accountants Office■ Nonaka Keiei Corporation (Nonaka Management Consulting Office)

KyushuAoyama Zaisan Networks USA, Inc.
(United States)
Hong Kong investment consulting partner■ Zaisan Networks Fukuoka Co., Ltd. (SHINOHARA CPA OFFICE)■ Sasaki Soken Co., Ltd. (Nishi Nihon Tax Corporation)■ Satsuki Partners Co., Ltd. (Satsuki Hisadome accounting firm)■ Aoyama Zaisan Networks Saga Support (MOROI Accounting Firm)■ Aoyama Zaisan Networks Nagasaki Support (Chuo Sogo Accounting Office)■ IDEA Research Institute Consulting Co., Ltd. (IDEA Tax Corporation)■ Zaisan Networks Okinawa Co., Ltd. (PS Accounting Office)

Major Indonesian industrial conglomerate
PT. Aoyama Zaisan Networks Indonesia(Indonesia)● Overseas partners● Overseas subsidiaries■ Zaisan Networks Shizuoka Co., Ltd. (Iwasaki Tax Corporation)■ Aim Nakano Accounting Co., Ltd. (ARIASU ZEIRISIHOUJIN)■ Zaisan Networks Nagoya Support (Meinan Consulting Network)■ Zaisan Networks Hyogo Co., Ltd. (Nihonkeiei Will Tax Accountant Corporation)■ Aoyama Zaisan Networks Wakayama Support (Nishioka Accounting Office)■ Nihon Shisan Souken Co., Ltd.
■ Aoyama Zaisan Networks Denenchofu Support (Saito Tax Corporation)■ Nihon Mirai Accounting & Tax Co.

Aoyama Wealth Management Pte. Ltd.
(Singapore)■ Mas Networks Co., Ltd. (The Narusako Accounting Firm Group)■ MMPC Consultants Corporation (MMPC Tax Corporation)■ Seki Soken Zaisan Partners Co., Ltd (AZ TAX Tax Corporation)■ Shibata Business Consulting Co., Ltd. (SBC Partners Tax Corporation)■ Aoyama Zaisan Networks Saitama Co., Ltd. (CWM Research Institute)■ Aoyama Zaisan Networks Kanto Chuo Support (MMG Tax Corporation)

Supporting the proposal and construction of senior citizen facilities as part of land utilization■ Aoyama Zaisan Networks Fukui Support (Uesaka Consulting Firm)■ Zaisan Networks Nagano Co., Ltd. (Nozomi Tax Corporation)■ Zaisan Networks Kyoto Co., Ltd. (SHINKEIEI SERVICE SHIMIZU Tax Co.)
■ Aoyama Zaisan Networks Kyoto Nijo Support (HIROSE LICENSED TAX ACCOUNTANT)■ SMO Corporation (Teruyoshi Sakon Tax Accountant Office)■ Zaisan Networks Osaka Co., Ltd. (Nihonkeiei Will Tax Accountant Corporation)■ Aoyama Zaisan Networks Ibaraki Support (Masuyama Accounting Office)■ Kujirai Tax Corporation

Even administrative bodies have a high desire for“lively places”where there can be local
interaction. Utilizing our know-how, we are providing proposals aimed at creating interaction between
senior citizens and nearby residents. In the first half of fiscal year 2019, we were involved in businessleading to the realization of regional comprehensive care where there is interaction between seniorcitizens and young people by collocating a senior citizen facility and condominiums that are speciallydesigned for residents giving consideration to the special characteristics of the region and creating
multi-use spaces that are“lively places.”In addition, in the second half of fiscal year 2019, in
collaboration with other experts we will hold seminars concerning“dementia”for customers of ourpartner companies such as financial institutions as well as our Company’s customers.

5

List of AZN nationwide network members (as of July 31, 2019)

Kanto

Initiatives to eliminate the children on wait lists have become a social issue and this problem along withincreasing the working population is one that must involve the private sector and not just administrative bodies.
While administrative bodies want to build kindergartens to reduce the children on the wait lists, they face hurdlesof securing the appropriate sites, selecting the operating companies and obtaining the understanding of the local
residents. Utilizing the know-how we have accumulated through property consulting, we support the establishmentof licensed kindergartens by solving the needs of the administrative bodies and landowners in a one stop shop. We
contribute to reducing the children on the wait list through the effective utilization of land by conducting meticulous
interviews to understand matters such as the intent of the administrative bodies and the demand for kindergartensin the region and holding explanatory meetings as necessary for nearby residents and even arranging the opening.

Initiatives for the aging society

We have established a nationwide network in Japan that includes leading tax accounting firms and accounting offices. Through this network, we provide
consulting services to customers across Japan. As part of our efforts to expand internationally, we have established overseas subsidiaries in the UnitedStates, Singapore, and Indonesia. Going forward, we will continue working with top overseas partners and enhance our network both at home and abroad.

Property management partner
Real estate partner

Japan

58
bases

Expanding
network to
Asia andNorth
America6

Corporate Data (as of June 30, 2019)

Executives (from June 30, 2019)

Name of Company

Aoyama Zaisan Networks Company, Limited

Head Office

3F Aoyama Tower Place, 8-4-14
Akasaka, Minato-ku, Tokyo
107-0052
Tel. +81-3-6439-5800

Incorporated

September 17, 1991

Capital stock

1,140.59 million yen

Business line

Individual property consulting,business succession consulting
and real estate solutions consulting

Number of employees(Group)233

Consolidated subsidiaries

6 companies including
Aoyama Estate Co., Ltd.,
Nihon Shisan Soken Co., Ltd.
and Aoyama Zaisan Investments Co., Ltd.

President
Director, Managing Executive Officer
Director, Managing Executive Officer
Director, Executive Officer
Director, Executive Officer
Director, Executive Officer
Director, Executive Officer
Outside Director
Outside Director
Outside Director
Outside Auditor (standing)
AuditorOutside Auditor▶ Notes for Shareholder

Stock Overview (as of June 30, 2019)
Number of shares in issue
Number of shareholders
Major Shareholders (Top 10)

Masazumi Hasumi
Masayuki Yagi
Takeshi Matsuura
Seido Nakatani
Shinji Shimane
Takaomi Ogawa
Hideo Matsuda
Haruo Shimada
Keiji WatanabeMichihiro Nagasaka
Hiroyuki Fujita
Hisao Nakatsuka
Hiroaki Rokugawa

１２,１０６,６００
5,671

Name

Shares held

Shareholding
ratio

Masazumi Hasumi

1,226,600

10.13

Yasuo Takano

665,800

5.50

Nihon M&A Center Inc.

500,000

4.13

Trust & Custody Services Bank, Ltd.
(pension trust account)

360,800

2.98

Japan Trustee Services Bank, Ltd.
(trust account)

327,800

2.70

Mutsumi Shimada

212,500

1.75

Capital Asset Planning, Inc.

200,000

1.65

Trust & Custody Services Bank, Ltd.
(securities investment trust account)

150,400

1.24

NORTHERN TRUST CO. (AVFC) RENORTHERN TRUST (GUERNSEY) LIMITEDRE GGDP RE: AIF CLIENTS 15.315
PERCENT NON TREATY ACCOUNT

135,000

1.11

J.P. MORGAN BANK LUXEMBOURG S.A. 1300000

118,900

0.98

Fiscal year

January 1 to December 31

Base date for the determinationof shareholders with year-end
dividend entitlements

December 31

Base date for the determinationof shareholders with interim
dividend entitlements

June 30

General meeting of shareholders

in March

Administrator of the shareholder
registry/Account management
institution for special account

Mitsubishi UFJ Trust and Banking Corporation

Contact

Mitsubishi UFJ Trust and Banking Corporation,
Stock Transfer Agency Department
1-1, Nikko-cho, Fuchu-shi, Tokyo
Tel. 0120-232-711 (toll-free, Japan only)
Mailing address: P.O. Box 29, Shin-Tokyo
Post Office 137-8081
Mitsubishi UFJ Trust and Banking Corporation,
Stock Transfer Agency Department

Stock exchange listings

TSE Second Section

Public announcements

To be announced on the Company’s website(For reference)
1. Shareholders’address changes, repurchase requests, and such other procedures, asa rule, are filled with the account-administrating institutions where shareholders havetheir accounts (securities companies, etc.). Shareholders are requested to contact
their account holding securities companies, etc., for information. Shareholders arereminded that application filings cannot be made with the administrator ofshareholder registry (Mitsubishi UFJ Trust and Banking Corporation).
2. Dividends hitherto uncollected by shareholders are paid by Mitsubishi UFJ Trust andBanking Corporation, Head Office Branch.