Top Message

Aiming to further grow and evolve
as a comprehensive
property consulting firm,
we will serve the happiness ofas many customers as possible.
President

In 2019, we launched the Second Medium-Term Management
Plan. Positioning this plan as three years of preparation forthe period of growth expansion starting from 2022, we worked
under five basic policies including initiatives to be equippedwith advanced technology and expanding collaborations. Someof the basic policies such as initiatives to be equipped withadvanced technology and employees’ individual progress
made great strides, while others did not show much progress(e.g., zero overseas real estate products were formed)■A DVANTAGE CLUB, a long-term revenue model in proportion tothe number of partnerships formed

Masazumi Hasumi

Features: 3 revenue points
Revenue is generated at each phase of●❶forming, ●❷managing, and ●❸dissolving a partnership

Having sought for customers’ happiness for the last 30 years

5■ Comprehensive property consulting

ult ingBusinc ecession
suc ngss sulti
onAZN was originally established on September 17, 1991 asFunai Property Dock Co., Ltd. with support from Funai
Consulting Incorporated Co., Ltd., for the purpose of offering
property succession/operations/management services toasset owners who owned land particularly. Thereafter wechanged the trade name to Funai Property Consultants Co.,
Ltd. in 1999, released the first project of our core product
ADVANTAGE CLUB in 2002, and were listed on the Mothers,
Tokyo Stock Exchange in 2004.
In October 2008, we acquired 100% ownership of Proggest
Holdings, Ltd. and at the same time, Masazumi Hasumi, took
over the management of the company from my predecessor,
then-President Yoshihito Hirabayashi. The purpose of thismerger was to grow dramatically to become a “comprehensiveproperty consulting firm” by adding a new business/property
succession consulting service for corporate owners to an
existing property consulting service mainly for asset owners
who own land particularly. This deal built a foundation for thes(2) In retrospect: 30 years since our foundation in 1991

onAoyama Zaisan Networks marked its 30th anniversary thisyear. Looking back on the original point where we started ourbusiness to mark this milestone, we find it comes down to a“job to be of help to people.” Based on this idea, we have two
management objectives: (1) “We seek to contribute to thehappiness of our customers through the succession, operationand management of property,” and (2) “We seek to ensure boththe physical and mental well-being of the members whom wework with.” That is to say, we believe that we makecontributions to the happiness of customers through oursolutions to property-related problems existing in society,through which we can make ourselves happy as well. To
please customers, we should learn to become a person of
three qualities: wisdom, action, and personality. To develop
the personality one, which allows us to be of help to many
people, we learn the value of virtues practiced by everyone
and try to practice it ourselves, day in and day out.

current AZN.
In 2008, however, the Lehman Brothers collapsed in
September, and triggered a global financial crisis, as you know.
We also ended up with a net loss of over ¥4.8 billion in thefollowing year (2009), mainly due to a loss on sale of realestate to repay loans, which hit us so hard and forced us to lay
off some of our employees. This brought us to discontinue ourprevious policy of carrying inventory and reselling real estateand convert to a new property consulting-based businessmodel.
In July 2012, we changed the trade name from Funai Property
Consultants Co., Ltd. to “Aoyama Zaisan Networks Company,Limited” and stood at the new starting line as an independent
property consulting firm both in name and reality. In October
2013, we merged with Nihon Shisan Souken Co., Ltd., acompany operating mainly in Chiba Prefecture, in a bid tostrengthen our property consulting services dramatically.
And in 2014, we embarked on the First Medium-Term
Management Plan. Driven by the “Abenomics” growth strategy
by the second Abe administration inaugurated in December
2012, our operating profit showed significant increases: ¥445
million (FY2014), ¥485 million (FY2015), ¥751 million (FY2016),¥1,094 million (FY2017), and ¥1,464 million (FY2018).
Meanwhile, we also started a business to deliver real estatetransactions and related products in the United States andIndonesia to residents in Japan through the partnership withour counterparts in these countries.

More than 140
registered experts
in each field provide
one-stop services

P r oper t y c(1) Looking back on the starting point of AZN froma major milestone

partially because of the impact of the novel coronavirus
disease (COVID-19) pandemic in 2020.
However in FY2021, the final year of this plan, we sold
ADVANTAGE CLUB partnerships, previously sold to AZN
customers only, to new customers through regional banks andsecurities companies with no particular problem and posted
record-high sales; we managed to finish up preparation for
the growth expansion period from the next fiscal year, which
we find greatly rewarding.

Realestate s olut

ions

Purchase/sell
real estateForma voluntarypartnership❸ Dissolve

Today, we have nearly a 60% market share by ADVANTAGE CLUB, a real estate joint ownership
scheme where customers jointly own real estate in urban areas and receive leasing income bytaking advantage of the Act on Specified Joint Real Estate Ventures. As of September 30, 2021,
we have cumulative total 56 partnerships, and cumulative total assets under management of¥85.02 billion against the backdrop of growing customer needs for inheritance measures andproperty management.

❶Manage❷

Our long-term vision
We design our long-term vision based on the following standpoints and create new strategies.

1#Standpoint

Aoyama Zaisan Networks achieves the higher quality and quantitative expansion of our customer services,made of a pair of wheels of a “comprehensive property consulting service” and a “strategic individual service”

In property succession, business succession, or property
management, most of the concerns our customers havecannot be resolved just by removing visible parts. For
instance, customers come to see us for solutions to various
concerns about tax payment, potential disputes among theirchildren, smooth business succession, and so on in the case ofinheritance (their passing). Through a number of meetings,
they grasp the big picture of their assets and businesses andthen get to realize what they really want to put first and what
they should do now; that is how they reach their best
succession plan.
For customers to be successful in inheritance or businesssuccession cases, we need to analyze the status of theirassets and fully understand their thoughts before planning
together and proceeding according to the plan. Our belief is:“No success comes without a plan.”
To make a plan and go along with it, we advise customers toconsider from the following five perspectives (see diagram onright): (1) smooth succession of management; (2) smooth
succession of property; (3) securing tax payment funds; (4)management and maintenance of property; and (5)preparation for the unexpected. In this way we can create aperfect plan with an overall balance.
Further, we must accomplish individual finalized plans one by
one when executing. To be more specific, this includes
purchasing profitable real estate, effectively using land
property, selecting appropriate securities products, utilizing
family offices for family succession, and asset managementby asset management companies. Enhancing and expanding
these services is imperative to the totally optimized plan. We
will strengthen our corporate structures, with the possibilityof a company split-up in consideration. The enhancement ofindividual plans also can be an opportunity for manycustomers to get to know us and go on to use ourcomprehensive property consulting service.
Having a close connection between (A) a “comprehensiveproperty consulting service” based on the formulation of thetotally optimized plan and (B) the enhancement & expansion of
a “strategic individual service” to support (A), AZN will grow toresolve the issues of our customers.

■ Five perspectives
Smoothof
1 succession
management

5 Preparation
for the unexpectedManagement and4 maintenanceof property

Smoothof2 succession
propertytax
3 Securing
payment funds

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Top Message

2#Standpoint

Aoyama Zaisan Networks offers a property consulting service via smartphone
and online communication tools as its standard service

The COVID-19 pandemic dramatically accelerated digitization,attentively. However, we also should be able provide high-and particularly the world of smartphones showed aquality consulting services online if we devise some ways, justphenomenal expansion. We are just around the corner fromas teleworking, which we were not used to in the beginning,

the world where we deliver our consulting services via

has now become a standard practice.

smartphone. It does not make sense if we cannot have data on

Against these backdrops, we set our vision, as the second

our assets handy and checkable. We know we should see ourlong-term vision, to create a structure to provide consulting

customers in person in meetings or at the restaurant so that

services via smartphone and online communication tools for

we can understand their thoughts and feelings morecustomers in Japan as well as overseas.

3#Standpoint

Aoyama Zaisan Networks grows to become a group of consultants withadvanced personality

Some say we easily lose personality (human touch) in a digitalcompany that can offer the property consulting service forsociety, which definitely makes us more swayed by what wesuccession of figures as well as something intangible butsee.

valuable.

Also in a property consulting service, figures and data such as

In order to conduct this type of consulting, we must be a

the amounts of assets, inheritance tax, and partition of estatecompany with consultants with important qualities as aare alleged to get our attention easily. Tangible (visible)

person, such as kindness, warmth, integrity, honesty, love,

figures and data are indeed important, but what we should

mercy, and altruistic values. Namely, it is imperative for us toreally value in property succession is to keep all family

grow to become a group of consultants with an advanced

members on good terms and to communicate an approach topersonality. The goal is lofty, but we will have no future

property use and a way of life that makes a contribution to thewithout achieving it.

Building a new structure for the next stage(1) Developing a new structure as a foundation
for the new Medium-Term Management Plan

(For more details, please see pp. 13–14 “Medium-Term Management Plan
Explained by President.”)

which should add to the significance of the succession,operations, and management of property considerably,
followed by a growth in their relevant markets, as everyone
already knows.
To meet such growing societal needs, we must advance digitaltransformation (DX), but at the moment we see delays intaking measures for DX in the field of property succession/operations/management. Faced with an issue that currently
we have no standards for providing services efficiently or for
their quality, that is the risk in our view. We should pushforward with improvements to the structure to meet the needsof as many customers as possible, enhance service quality &quantity, and offer them easy-to-use services. To be able togrow to become a company ensuring the happiness of manycustomers, we will further seek a synergy effect with the “ARTSystem,” which is already in operation as part of our initiatives
to be equipped with advanced technology, and advance DX.

(2) Business opportunities and risks■ ART System

We see the expansion of property market focused oninheritance and business succession as our opportunities in
the future business environment. In our time, the aging
population and falling birthrate, decreasing work force
population, a lack of successors, and the declining quality ofsocial security services as a result of increasing social
security costs are feared. Under these circumstances, all of us
are asked to live on our own to lead a happy life. In order to doso, we first need to make an economic foundation stronger,

The ART System stands for a fusion of “A”oyama/“A”sset, “R”eal(numerous consulting achievements), and “T”echnology, and systematizes
the knowledge and methods of our most experienced consultants andautomates a process of producing materials for the purpose of improving
efficiency and productivity in the consulting business.

We are now in the middle of developing the new Third
Medium-Term Management Plan. As a company that cantransform concerns that asset owners who own land inparticular, business owners, and financial asset owners haveover their property, mainly associated with inheritance andbusiness succession, into a “sense of security/peace of mind,”
we aim to become a leading company recognized as “Aboutproperty, Aoyama Zaisan Networks.” To that end, we areformulating a plan with four items (customer, service,technology, and organizational structure) as its foundation.
We will aim to become a company that ensures the happinessof many customers by resolving their property problems.

POINT1Standardization ofconsulting know-how

2

Improvement ofefficiency/productivity

3

Monetization using ART
System in collaboration
with leading regionalbanksworld. In other words, our desire is to grow to become aFor the enhancement of the largest management capital “human resources”

4#Standpoint

Aoyama Zaisan Networks is actively engaged in CSR activities

The growth and development of our company depends on how

this business to make the world a place for many people tomuch contribution we can make for the happiness and growth

live happily, we study initiatives for a decarbonized societyof many people or on how far we can contribute to thethrough our operations. We will identify CSR activities wehappiness of our customers through our property solutions. Inshould focus on so that we can serve SDGs through ouraddition to contributing a portion of our income earned fromdedication to our customers.

■ CSR case examples in our core business: regional revitalization project consulting
Drawing on a “special business” under the Act on Specified
Joint Real Estate Ventures, we are engaged in the regional
revitalization projects.
With the Group consulting capability and government licenses,
we will develop and transform idle land in front of train
stations owned by local governments into lively town squares.

First project

Komatsu City, Ishikawa Prefecture(Completed in 2017)
Second projectTsuruga City, Fukui Prefecture(In progress)

Illustration of Tsuruga Station Western District

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The most important management capital for us is “humanresources.” With an emphasis on the balance of financial,physical, and mental fulfillment of our employees, we havebeen committed to their well-being so that they can feel it
constantly. We also run a human resources training program
focused on wisdom, action, and personality so that each
employee can find his/her work rewarding.
As mentioned earlier, the “ART System,” which boosts

service quality and supports productivity improvement
in consulting, also serves human resource development.
The systematization of knowledge and rules of thumb of
resourceful consultants as an educational curriculum canlead to the speedy development of consultants. A DX initiative
should also lead not only to benefitting consultants, but also
to company-wide improved productivity and human resourcedevelopment; we will actively advance the initiative.

On to the next stage for further growth and evolution
Based on the idea, “financial assets are the foundation
for leading a happy life,” we have delivered our property
consulting service for the last 30 years, primarily to a limited
number of customers in the Tokyo Metropolitan area. As
technologies have been showing dramatic progress in recentyears, in the next stage, we will grow to address property
problems of customers across Japan as well as overseas andto become a company ensuring the happiness of an infinitelylarger number of customers than now.
The Group will do our best to live up to your expectations in
the next 30 years.

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