Our Strategy

Medium-Term Management Plan

Third Medium-Term Management Plan
Our vision is to become Japan's No. 1 comprehensive
property consulting firm, supported by clients' whoknow, "When it comes to property, it's Aoyama Zaisan
Networks." Our Medium-Term Management Plans areformulated to realize this long-term vision.
Following the First Medium-Term Management
Plan in our venture phase and the Second MediumTerm Management Plan in our growth phase, the Third
Medium-Term Management Plan for the three-year period
beginning in FY2022 is positioned as a period of expansion
and growth as a comprehensive property consulting firm.
AZN Group's profits and sales grew steadily during theventure period, but from FY2019 to FY2021, which had
been positioned as a growth period, our profits, sales, andproductivity per consultant remained flat, and AZN Group
is currently experiencing something of a growth plateau.
Therefore, for our Third Medium-Term Management Plan,
we have formulated a plan with clear quantitative targets,
keeping in mind the paramount issues of increasing

profitability and productivity.
With regard to operating profit, in order to be able toprovide services that exceed client expectations, we aim
for continuous growth each year. In the final fiscal yearof this plan, FY2024, we expect gross profit of 7.5 to 8
billion yen, operating income of 4.5 to 5 billion yen, and an
operating profit ratio of 10%.
With respect to the 203 consultants currently on
staff, AZN aims to increase the proportion of property
consulting revenue in its gross profit and improve sales by
substantially increasing the number of consultants throughaggressive investment in human resources. At the sametime, we will be promoting DX to increase productivity andimprove our operating profit ratio.
To accomplish these goals, various measures havebeen formulated for the Third Medium-Term ManagementPlan, based on the 4 standpoints outlined on the followingpage.

OurVision⚫ Third Medium-Term Management Plan (Overview)

Second Medium-Term
Management PlanFirst Medium-Term
Management Plan

the company we
aim to become

Third Medium-Term
Management Plan
FY2022–2024

FY2019–2021

Period of growth expansion

FY2014–2018

Period of growth
Period of venture

as a property
consulting firm

as a property
consulting firm

as a property
consulting firmJapan’s top comprehensive
property consulting firm
supported and chosen by
many client as“When it comes toproperty, it's Aoyama
Zaisan Networks”⚫ Shifts in operating profit in the Third Medium-Term Management Plan

Growth period

4,500

~

Period ofexpansion
and growth(million yen)

5,000

3,300
(forecast)
2,629

Venture period
1,856
1,464

1,603
1,303

1,094
751
160
2013

445

485

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024
(year)First Medium-Term Management Plan

Second Medium-Term
Management Plan

Third Medium-Term
Management Plan

Aoyama Zaisan Networks ｜ Integrated Report 2023

9Our Strategy Medium-Term Management Plan
⚫ 4 standpoints of the Third Medium-Term Management Plan
Standpoint

1Standpoint

1

Standpoint

We offer property consulting
services via smartphone and online
communication tools as standard
services

Achieving higher quality andquantitative expansion of ourclient services, based on thetwin cornerstones of strategic
individualized services andcomprehensive property
consulting services

Standpoint

23

Standpoint

Growing into a consulting
group with strong
interpersonal skills

4

Proactive approach to social
contribution activities

Achieving higher quality and quantitative expansion of our client services, based on
the twin cornerstones of comprehensive property consulting services and strategic
individualized services

AZN Group offers eight strategic individualized services,
including Advantage Club , a small-lot real estate product,
and aims to improve quality and expand quantity in®

⚫ The relationship between strategic individualized
services and comprehensive property consulting
services

conjunction with its other cornerstone of comprehensive
property consulting services.
Some new clients may feel that suddenly dealing witha comprehensive suite of property consulting services is
too much. For this reason, we believe that by first making
contact with our clients through strategic individualized
services that meet their needs, and then using that asa starting point, we can smoothly connect them to ourcomprehensive property consulting services.
We look forward to increasing revenues by meetingclient needs through the synergistic effect of these
services and by building long-term relationships.

ADVANTAGE
CLUB
Effective realestate use
consulting

Family officeservice

Regional
creative
development
consulting

Purchase
consultingComprehensive
property consulting
services

Consulting on
financial instrument
services by IFA

Business
succession fund

STO (SecurityToken Offering)business(independent financialadvisors)

Standpoint2

We offer property consulting services via smartphone and online communication
tools as standard services

We will aggressively promote DX to increase profitability
and productivity. The core of this approach is the ARTsystem, which was developed and introduced by theGroup in February 2021.
The ART system integrates and incorporates theknowledge of top consultants in various fields, including⚫ ART system & web-based consulting
Comprehensive property consulting services
Strategic individualized services
ADVANTAGE
CLUBPurchaseconsulting

Businesssuccession fund

STO (Security TokenOffering) business

Consulting on financial
instrument services by IFA

Regional creative
development consulting

Family office service

Effective real estateuse consulting(independent financial advisors)

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Aoyama Zaisan Networks ｜ Integrated Report 2023

ARTsystem

For more nationwide
client Providing webbased consultinginheritance strategies, business succession, and utilizationof real estate. With the simple input of client data, thesystem can speedily analyze issues and present options
for strategies and measures. By utilizing the ART systemand online services, we are able to provide consulting
services to numerous clients throughout Japan.
Also, by introducing the ART system, we haveestablished a system for division of labor in consulting
work. Our inside sales team handles the initial stageof each project, and is able to provide standardized
consulting using the ART system. This allows our highly
specialized consultants to demonstrate their expertise, tofocus on comprehensive property consulting work, and toprovide more extensive care to clients than ever before.
The system is currently undergoing improvement
to provide standard services using smartphones andonline communication tools. For example, from 2022
we introduced the ability for users to check the statusof their investments and dividends using Advantage
Club, our flagship product for strategic individualizedservices, via a smartphone app, and we plan to introduce
a function enabling purchases in the future. We are also
strengthening our direct marketing and considering new
developments, including the use of platforms to provide adigital window into the market.

⚫ Improving productivity and customer service with DX

BeforeContact point with new client

Receiving inquiry

Meeting & consulting

Application

Ongoing follow-up

Consultant responds
to referral from financial
institutions, etc.

Consultant handles
everything from the initial
stage

Mainly face-to-face forclients in the Tokyo area
(online meetings also used)

Written application

Personalized follow-up by
consultant

Utilize digital platforms

Division of labor × ART
systemFor clients nationwide
Online meetings × ART
systemAfter

Application via smartphone(ADVANTAGE CLUB, etc.)

Utilize digital platforms(From 2022onward)

Standpoint

3Growing into a consulting group with strong interpersonal skills

For our consultants, it is of paramount importance toearn the trust of our clients in order to successfully consult
with them about their valuable assets and businesses.
To achieve this, it is essential that we grow into aconsulting group that possesses strong interpersonal skills
combining integrity, kindness, and compassion. Amongthe interpersonal skills required, AZN considers a senseStandpoint

4of wanting to help others—the desire to contribute to thehappiness of our clients—to be particularly essential.
In order to build up such interpersonal skills, in addition
to ideals training conducted in-house, we promote
initiatives such as supporting participation of Group
employees in activities that contribute to society outside
the company too.

Proactive approach to social contribution activities

In conducting sustainable operations, it is also importantthat companies actively engage in social contribution
activities as part of their corporate social responsibility.
AZN has been continuously making donations to the Tokyo
Medical Association and providing supplies to medical
institutions, using a portion of the profits generated
through its business.
Since last year, in addition to donating to organizations

tackling social issues such as elimination of pet euthanasia
and promoting subsidized meals for children, we have also
promoted our employees' own social contribution activities
and have established a new social contribution plan as ashareholder benefit, among other efforts. We will continue tomake company-wide contributions through cross-functionalorganizations such as our Sustainability Committee to help
realize a society that sustains many people in happiness.

Aoyama Zaisan Networks ｜ Integrated Report 2023

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