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 Six Months Ended June 30, 2022
(Based on Japanese GAAP)
August 4, 2022
Company name:
Aoyama Zaisan Networks Co., Ltd.
Stock exchange listing: Tokyo
Stock code:

8929

Representative:

President
Director,Deputy Executive Officer,URL

https://www.azn.co.jp/
Masazumi Hasumi

Inquiries:General Manager for Management

Masayuki Yagi

Headquarters
Scheduled date to file Quarterly Securities Report:

TEL

03-6439-5800

August 4, 2022

Scheduled date to commence dividend payments:

August 22, 2022

Preparation of supplementary material on quarterly financial results:

Yes

Holding of quarterly financial results meeting:Yes(for analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the six months ended June 30, 2022 (from January 1, 2022 to June 30, 2022)(1) Consolidated operating results (cumulative)
Net sales
Six months ended June 30, 2022
Six months ended June 30, 2021

Millions of yen
20,232
11,919Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
69.7
1,097(7.8)
1,044 (10.2)
713 (33.7)
25.9
1,190
63.0
1,163
71.5
1,076 147.4

Earnings per share

Diluted earnings per share

Yen
29.46
44.37

Six months ended June 30, 2022
Six months ended June 30, 2021

Yen
29.41
44.16

(2) Consolidated financial position
Total assets
As of June 30, 2022
As of December 31, 2021

Net assets

Millions of yen
20,781
17,426Equity ratio

Millions of yen
7,637
7,128

Net assets per share%
36.5
40.8

Yen
312.57294.61

2. Cash dividends
Annual dividends per share

Year ended December 31, 2021
Year ending December 31, 2022

1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––

Yen
22.00
13.00

Yen–

Yen
17.00

Yen––

18.00

31.00

Year ending December 31, 2022 (Forecast)Total

3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)
Percentages indicate year-on-year changes
Profit attributable toNet sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
36,500
50.7
2,550
37.4
2,420
34.7
1,690
14.1
69.55

1

4. Notes(1) Changes in significant subsidiaries during the six months ended June 30, 2022
(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:
Yes
Changes in accounting policies due to other reasons:No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2022

24,520,859 shares As of December 31, 2021

24,362,800 shares

Number of treasury shares at the end of the period
As of June 30, 2022

220,283 shares As of December 31, 2021

220,248 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended June 30, 2022

24,238,203 shares Six months ended June 30, 2021

224,260,128 shares

Quarterly consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of December 31, 2021

As of June 30, 2022

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade

10,865567

13,138586

Real estate for sale

118

1,207

Other inventories
Income taxes receivable

525

4–

Other

483

456

Allowance for doubtful accounts

(3)

(3)

12,062

15,389

2,369

2,394

195
116

195
122

2,681

2,712

28
495

23
432

Other

27

26

Total intangible assets

551

482

Investments and other assets
Investment securities

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

1,587

1,671

Shares of subsidiaries and associates
Deferred tax assets
Other34
122
386

39116
369

Total investments and other assets

2,131

2,197

5,364

5,392

17,426

20,781

Total non-current assets
Total assets3

(Millions of yen)
As of December 31, 2021

As of June 30, 2022

Liabilities
Current liabilities
Accounts payable - trade

189

241

200
1,298

200
1,924

Current portion of bonds payable

232

180

Income taxes payable
Accounts payable - other204
986

317
657

Provision for bonuses–432

Short-term borrowings
Current portion of long-term borrowings

Other
Total current liabilities

736

463

3,846

4,417

Non-current liabilities
Bonds payable

180

90

Long-term borrowings

4,679

6,688

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

1,528
57

1,884
57

Other

6

6

6,452

8,726

10,29813,144

Shareholders' equity
Share capital
Capital surplus

1,167
1,330

1,210
1,374

Retained earnings
Treasury shares

4,625
(167)

4,929
(168)

Total shareholders' equity

6,955

7,346

Valuation difference on available-for-sale securitiesForeign currency translation adjustment

181(24)

182
66

Total accumulated other comprehensive income

156

249

11420
21

7,128

7,637

17,426

20,781

Total non-current liabilities
Total liabilities
Net assets

Accumulated other comprehensive income

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

4Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

June 30, 2021June 30, 2022

Net sales
Cost of sales

11,9199,529

20,232
17,562Gross profit

2,389

2,669

Selling, general and administrative expenses

1,199

1,572

Operating profit

1,190

1,097

2562

Other811

Total non-operating income

3473

Non-operating expenses
Interest expenses

3339

Commission expenses

2278

Other

48

Non-operating income
Foreign exchange gains

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Gain on reversal of share acquisition rights
Total extraordinary income
Profit before income taxes61126

1,163

1,044

23190

–0213

0

1,377

1,045

Income taxes - current

100327

Income taxes - deferred

201

5

Total income taxes

301

333

1,075

711

(1)

(2)

1,076

713

ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated statements of comprehensive income (cumulative)(Millions of yen)Six months ended
June 30, 2021
ProfitSix months ended
June 30, 2022
1,075

711

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

2630

091

Total other comprehensive income

5692

Comprehensive income

1,131804

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,132806(1)(2)

Other comprehensive income

Comprehensive income attributable to non-controllinginterests

6

Consolidated statements of cash flows(Millions of yen)Six months ended
June 30, 2021

Six months ended
June 30, 2022

Cash flows from operating activities
Profit before income taxes

1,377

1,045

Depreciation
Amortization of goodwill

153
4147
4

Share-based payment expenses–10

Increase (decrease) in provision for bonuses
Interest and dividend income

391
(3)

432
(4)

Interest expenses

3339

Loss (gain) on sale of investment securities

(23)

–

Gain on reversal of share acquisition rights
Decrease (increase) in trade receivables

(190)
(327)

(0)
(18)

Decrease (increase) in inventories

199(1,088)Decrease (increase) in accounts receivable - other
Decrease (increase) in advance payments to suppliers

(20)
(449)

(23)
148

Decrease (increase) in advances paid2(12)Increase (decrease) in trade payables

75

52

Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes

(305)
(8)

(294)
(33)

Increase (decrease) in deposits received
Increase (decrease) in leasehold and guarantee deposits
received

(184)

(225)

104

356

Other, net

(30)

(114)

Subtotal

797

422Interest and dividends received
Interest paid

3(30)

4
(37)

Income taxes refund (paid)

(85)

(192)

Net cash provided by (used in) operating activities

684

196

(141)
(47)
(25)
(360)
246
41
(1)

(113)
(4)
–
(199)
113
54(287)(194)

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Purchase of investment securities
Proceeds from sales and withdrawal of investment securities
Proceeds from refund of leasehold and guarantee deposits
Other, net
Net cash provided by (used in) investing activities

7

(Millions of yen)Six months ended
June 30, 2021

Six months ended
June 30, 2022

Cash flows from financing activities
Proceeds from long-term borrowings

1,600

3,500

Repayments of long-term borrowings
Redemption of bonds

(589)
(242)

(864)
(142)

Proceeds from exercise of employee share options

2344

Proceeds from share issuance to non-controlling shareholders
Purchase of treasury shares

10(167)20(0)Dividends paid

(399)

(409)

Net cash provided by (used in) financing activities

234

2,149

Effect of exchange rate change on cash and cash equivalents

43120

Net increase (decrease) in cash and cash equivalents

675

2,272

Cash and cash equivalents at beginning of period

9,424

10,862

Cash and cash equivalents at end of period

10,10013,1348