First Half Business Summary for Fiscal Year 2012 (22nd period)
January 1 to June 30, 2012

On July 5, 2012, Funai Zaisan Consultants Co., Ltd. changed its
name to Aoyama Zaisan Networks Co., Ltd.

Management Principle~ We will remain your best partner over 100 years ~Core Values
1. We always put our customers' happiness first.
2. We work on all things with modesty, loyalty and in good faith.
3. We value the feelings of consideration and gratitude.

Management Objectives
1. We will contribute to the society by offering optimum solutions for thepreservation of individual asset and corporate value.
2. We aim for the physical and mental wellbeing of our coworkers.

President

Masazumi Hasumi

Aoyama Zaisan Networks Provides
the Most Comprehensive Asset Management Solutions
The operating environment for “individual asset holders” changes from day to day, and has entered a period of great instability.
Real estate and share prices have fallen by over 50% and 75% respectively during the past 20 years, interest rates on banksavings have been held at effectively 0% for over 20 years, and consumption, income and inheritance taxes have undergone
large increases more recently.
These issues are compounded by a financial deterioration in Japan, declines in funding for future pension, social welfare andother public functions, and other unstable economic factors that threaten individuals’ abilities to maintain adequate funding forpost-retirement life.
Furthermore with regards to “corporate owners,” many entrepreneurs are faced with a lack of successors and uncertainties in
the future prospects to carry on their businesses. And this inability to maintain the continuity of their businesses raises the riskof potential loss of personal assets.
Amidst the current turbulent environment where “few guarantees for the future exist,” Funai Zaisan Consultants adopted the
new company name of Aoyama Zaisan Networks on July 5, 2012 as part of its efforts to provide comprehensive asset
management consulting solutions and services designed to deal with the preservation and management of assets, continuationof businesses, and inheritance issues. Please keep your high expectations on our new beginning.

Business Results for the First Half of Fiscal Year 2012
Operating Results
During the first half of the fiscal year 2012, signs of a recovery in the Japanese economy
appeared on the back of disaster relief demand in the wake of the Great East Japan
Earthquake, however the reappearance of the European sovereign debt crisis, slowing in the
Chinese economy, the threat of electric power shortages within Japan, and other factors limited
the recovery in Japan’s economy. With regards to the real estate industry, which has a
profound influence upon the Aoyama Zaisan Networks Group experienced high. Vacancy rates
at offices within five wards of central Tokyo with rent prices trended remained very weak, andoverall operating conditions remained difficult too.
Against this backdrop, our Group (including Aoyama Zaisan Networks and its fiveconsolidated subsidiaries) provides services designed to protect the assets and ensure thecontinuation of businesses of individuals and business owners. We also provide services
designed to raise the earnings generation potential of real estate, which accounts for two thirdsof assets within Japan, and various real estate solutions including purchase, sale and othermeans of leveraging real estate as part of its asset consulting business. At the same time we
maintain a philosophy that “assets act as the foundation of happy lifestyles.” Against the
backdrop of the current severe economic environment, it is important to accurately predict
future economic trends and assess the current status of individuals’ assets, and develop a
strategy to deal with asset management, inheritance related issues, and continuation ofbusiness measures to get over the current “period of uncertainty regarding the future.”

The Aoyama Zaisan Networks Group seeks to maintain its position as the “best partner forover 100 years into the future” by accurately responding to customers’ various needs. As partof our response, we seek to raise the quality of our services by leveraging our bountiful
knowledge and experiences of the financial, real estate and other markets.
September 2011 marked the 20th year of our operations and we changed our name to Aoyama
Zaisan Networks Co. Ltd. on July 5, 2012 as part of our efforts to fortify our ability to respondto the constantly changing needs of our customers and to maintain growth of our company. At
the same time we maintain the view that “inability to change will lead to loss of future
opportunities.” In addition, we published the “Property White Paper 2012” on July 9, 2012.
This year’s “Property White Paper 2012” included updated data regarding various aspects ofproperty and assets, in addition to information on Japan’s fiscal conditions, and trends in theJapanese real estate market. Furthermore our White Paper includes surveys and analysis of
new asset management issues including dementia in the aging Japanese society and survey
results of our customers regarding their concerns over their assets.
As a result of our activities, net sales during the first half of fiscal year December 2012 rose by
31.7% year-over-year to ¥4,090 million, while operating and ordinary incomes fell by 40.0%
and 5.3% year-over-year to ¥31 and ¥35 million respectively. At the same time a net loss of¥33 million was recorded (Compared with a net loss of ¥11 million in the same period of theprevious term).

Highlights of Consolidated Business Results (unit: million yen)First half of Fiscal Year 2010
(20th period)
RevenueFirst half of Fiscal Year 2011
(21st period)

2,017

3,105

First half of Fiscal Year 2012
(22nd period)

Forecast for Fiscal Year 2012
(22nd period)

4,090

8,400

Ordinary income

188

38

35

290

Net income (loss)

119

(11)

33

280

Revenue by Segments
First half of Fiscal Year 2011 (21st period)First half of Fiscal Year 2012 (22st period)

Ratio (%)

Amount (Million yen)Amount (Million yen)

Ratio (%)

Revenue from asset consulting

1,022

32.9

826

Revenue from real estate transactions

1,497

48.2

2,591

63.3

551

17.8

637

15.6

Revenue from sublease
Other revenue
Total

20.2

34

1.1

35

0.9

3,105

100.0

4,090

100.0

The above forecasts are based on the information available as of the preparation of this document, involving some uncertainty. Actual business results might prove different from these forecasts, depending on the changes inbusiness conditions.

Consolidated Balance Sheet in the Second Quarter
Million of yen, rounded down to the nearest million

Consolidated Balance Sheet
Term
Item
AssetsCurrent assets

Fiscal Year 2011

First half of Fiscal Year 2012

Dec. 31, 2011

Jun. 30, 2012

Term

Fiscal Year 2011

First half of Fiscal Year 2012

Dec. 31, 2011

Jun. 30, 2012

Item
Liabilities

1,790

1,561

1,486

1,247

Cash and deposits

1,474

978

Fix liabilities

986

1,699

Accounts receivable

215

279

Total liabilities

2,473

2,946

0

65

Net assets

Real estate held for sale

Current liabilities

Purchased receivables

52

49

Shareholder's equity

1,600

1,565

Others100

238

Common stock

1,030

1,030

Allowance for doubtful accounts

(51)

(49)

Capital surplus

334

334

1,907

2,572

Retained earnings

235

200

63

814

(375)

(377)

Fixed assets
Tangible fixed assets
Intangible fixed assets
Investments and other assets
Total assets

322

234

(375)

(377)

1,520

1,524

Total net assets

1,224

1,187

3,698

4,133

Total inabilities and net assets

3,698

4,133

Consolidated Income Statements
Term

Unrealized gain on securities

Consolidated Cash Flows
Term

First half of Fiscal Year 2011 First half of Fiscal Year 2012
from Jan. 1, 2011
to Jun. 30, 2011

from Jan. 1, 2012
to Jun. 30, 2012

Revenue

3,105

4,090

Operating cost

2,359

3,476

Gross operating income

745

614

SG & A

694

582

Operating income

5131

Non-operating revenue

615

Non-operating expenses

20

10

Ordinary income

38

35

Extraordinary income–

1

Extraordinary loss

49

0

Net income (loss) before income taxes and minority
interests before loss distribution to anonymous association

(11)

37

Loss distribution to anonymous association

(2)

(0)

Net income (loss) before income
taxes and minority interests

(9)

37

Item

Valuation difference on available-for-sale securities

Total income taxes

1

3

Net income (loss)

(11)

33

First half of Fiscal Year 2011 First half of Fiscal Year 2012
from Jan. 1, 2011
to Jun. 30, 2011

from Jan. 1, 2012
to Jun. 30, 2012

Cash flow from operating activities

199

(188)

Cash flow from investing activities

48

(752)

Cash flow from financing activities

(436)

444

Change in cash and equivalents

(188)

(496)

Cash and equivalents at start of year

1,374

1,474

Cash and equivalents at end of the year

1,186

978

Item

TOPICS

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1

“Property White Paper 2012” Released
The “Property White Paper 2012” went on sale on July 9, 2012 and contains updated data and otherinformation on overall assets, including surveys and analysis of the uses of assets and attitudes of individual
asset holders within Japan, and their attitudes toward and awareness of asset management overall.
The key highlights of our most recent White Paper also includes information regarding the financial
conditions of Japan trends in the Japanese real estate market, survey results of our Group’s asset holding
customers regarding the threats and uncertainties they are confronted with, dementia and other newer issues
for asset management in the era of the aging Japanese society, economic patterns after the financial collapseof various countries, and surveys and analysis of other topical issues.
Similar to last year’s White Paper, we have carefully chosen approximately 400 out of over 1,000 different
types of data to clarify the abstract concepts of the “asset holder market” and “high net worth market”
through clean and easily understandable analysis of the necessary services to protect assets and enrich asset
holders’ lives. In addition to this information, we have also included a CD-ROM for regional asset holders
with various data regarding regional economies and societies to enable easy analysis of those regions.

Title: Property White Paper 2012
Author: Aoyama Zaisan Networks Co., Ltd.
Chief Editor: Aoyama Zaisan Networks Co., Ltd.
President, Masazumi Hasumi
Joint Author: P&E Directions Inc.
Pages: approx. 300 pages, also packaged with a CD-ROM
Price: ¥84,000 (Including tax)

Many of Japan’s top media have written about our “Property White Paper 2012”
List of Japanese media making reference to the “Property White Paper 2012”
Nikkan Shouhin Toushi Tokuho published by Sangyo Press Co., Ltd.
Shukan Jutaku published by Shukan Jutaku Shimbun Sha
Real Estate Economic Report published by Real Estate Economic Institute Co., Ltd.
Tax Accounting Flash Report published by Gyosei Corporation
Hoken Joho published by Hokensha
Searchina updated on SBI Searchina Co., Ltd.
Livedoor News updated on Livedoor
Check Time broadcasted on Tokyo Metropolitan Television Broadcasting Corp
Hapimo broadcasted on Chiba Television Broadcasting CorpTOPICS

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2

“ADVANTAGE CLUB” Formation
As part of our asset consulting business, we have created a system forthe joint ownership of real estate known as “ADVANTAGE CLUB
Kyobashi Chuo” during the first half of fiscal year as a response to theasset management needs of our customers. “ADVANTAGE CLUB” isa voluntary partnership contract (monetary investment method) that isformed in accordance with the Real Estate Specified Joint Enterprises
Act to jointly own high-return real estates and receive the profit
distribution. This is a new form of selective ownership and investmentof real estates that conform to the time.

T

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P

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3

“Asset Club Bussola”
In February 2011, we launched the “Asset Club Bussola” to provide valuable opportunities for individual asset holders to exchange ideas on how to protect andleverage their assets information with each other as a means to ensure that they live comfortable and happy lives. Through this Club, Aoyama Zaisan Networks
provides helpful information regarding the “economy,” “health,” “family” and other themes to fortify the financial foundations of our asset holding customers and toenable them to enjoy enriched lives.
We have also invited leading individuals in various fields to give lectures related to the concept that “happy family life and the protection of assets cannot be
achieved without good health.” In keeping with this concept, Asset Club Bussola is hosting a series of lectures on the theme of “health” three times this year (April,
July and October). A guest speaker at the first lecture held in April was Visiting Professor of Juntendo University and Director of the Koushikai Cancer Treatment
Group Motohiro Asonuma, and his theme was “How to Deal Effectively with Cancer.” Another speaker at the first lecture was Dean of the Chiba University ofCommerce Haruo Shimada who gave a lecture entitled “How to Enjoy a Healthy Life Overcoming Cancer.” One of the speakers at the second lecture held in July
was Juntendo University Professor Okio Hino, who has published various publications on the subject of cancer, whose talk was entitled “Bridging the Treatment
Gap: Cancer Philosophy Outpatient Café, Great Endeavors of a Meddling Person.”
Another guest speaker was Masashi Saito, a physician specializing in oncology and communicable diseases, registered physician in the state of New York, Directorof the Fujishikai Medical Institution, Director of the Cancer Consulting ToTo Institution, and author of a best-selling book entitled “Raising Body Temperature to
Become Healthy” which sold over 700,000 copies in 2009, whose lecture was entitled “How to Live a Life without Contracting Cancer – “Preemptive Medicine.”Corporate Data
Corporate Data

as of July 31, 2012

Executives(as of March 28, 2012)

Name of Company

Aoyama Zaisan Networks Company, Limited

President

Masazumi Hasumi

Head Office

3F Aoyama Tower Place, 8-4-14 Akasaka, Minato-ku, Tokyo 107-0052

Managing Director

Hisao Nakatsuka

Tel. +81-6439-5800

Outside Director

Haruo Shimada

Incorporated

September 17, 1991

Outside Director

Keiji Watanabe

Capital stock

1,030.81 million yen

Standing Auditor

Muneo Harada

Business line

Comprehensive individual asset consulting, corporate finance consulting and real estate solutions consulting

Outside Auditor

Takao Kitamura

Number of employees(Group)106 (as of June 30, 2012)

Outside Auditor

Hiroaki Rokugawa

Consolidated subsidiaries

5 companies including Aoyama Estate Co., Ltd. and Project Holdings Co., Ltd.

Hokkaido, Tohoku

Nationwide Network (36 bases as of July 31, 2012)

Zaisan Networks Sendai Co., Ltd.
Zaisan Networks Fukushima Co., Ltd.

Chugoku, Shikoku

Kinki

Aoyama Zaisan Networks Hokkaido Support

Zaisan Consultants Tokushima Co., Ltd.

Zaisan Networks Kyoto Co., Ltd.

Midori Zaisan Consultants Co., Ltd.

Zaisan Networks Osaka Co., Ltd.

Aoyama Zaisan Networks Aomori Support

Aoyama Zaisan Networks Tottori Support

Zaisan Networks Hyogo Co., Ltd.

Aoyama Zaisan Networks Shimane Support

Aoyama Zaisan Networks Yamagata Support
Aoyama Zaisan Networks Koriyama Support

Seki Soken Zaisan Partners Co., Ltd
Aoyama Zaisan Networks Wakayama Support
Aoyama Zaisan Networks Kyoto Nijo Support

Kyushu, Okinawa
Zaisan Networks Fukuoka Co., Ltd.
Zaisan Networks Nagasaki Co., Ltd.

Aoyama Zaisan Networks
Company, Limited

Kanto, Koshinetsu
Zaisan Networks Tochigi Co., Ltd.

Zaisan Networks Okinawa Co., Ltd.

Zaisan Networks Motegi Co., Ltd.

Aoyama Zaisan Networks Miyazaki Support

Zaisan Networks Saitama Co., Ltd.

Aoyama Zaisan Networks Saga Support

Tokai, Hokuriku
Zaisan Consultants Kanazawa Co., Ltd.

Nihon Shisan Soken Works Co., Ltd.
Zaisan Networks Yamada Co., Ltd.
Zaisan Networks Kawasaki Co., Ltd.

Zaisan Networks Shizuoka Co., Ltd.

Zaisan Networks Nagano Co., Ltd.

Meinan Zaisan Advisers Co., Ltd.

Aoyama Zaisan Networks Ibaraki Support

Aoyama Zaisan Networks Fukui Support

Aoyama Zaisan Networks Kanto Chuo Support

Aoyama Zaisan Networks Mie Support

Aoyama Zaisan Networks Denenchofu Support

Stock Information
Stock Overview(as of June 30, 2012)

Number of shares in issue

105,705

Number of shareholders

5,970

Number of Shareholders by Category
Individuals and others/5,865(98.24%)

Total
5,970

Major Shareholders (Top 10)
Name

Other Japanese companies/74(1.24%)
Securities firms/15(0.25%)
Overseas companies and others/12(0.20%)

Shares held

Shareholding ratio

MID Plus Co., Ltd.

11,003

10.40

Funai Consulting Inc.

9,132

8.63

Masazumi Hasumi

5,762

5.45

Mutsumi Shimada

4,370

4.13

Hideo Murakami

1,977

1.87

Tomio Sugimura

1,809

1.71

Baillie Gifford Shin Nippon PLC

1,672

1.58

Baillie Gifford Japan Trust PLC

1,473

1.39

Mitsuyoshi Watanabe

1,330

1.25

Securities firms/605(0.57%)

950

0.89

Financial institutions/437(0.41%)

Takaaki Odaka

Financial institutions/4(0.07%)

Number of shares held by Category
Individuals and others/76,931(72.79%)

Total
105,705

Other Japanese companies/23,144(21.89%)
Overseas companies and others/4,588(4.34%)

Notes for Shareholder
Fiscal year
Base date for the determination of shareholders
with year-end dividend entitlements
Base date for the determination of shareholders
with interim dividend entitlements
General meeting of shareholders
Administrator of the shareholder registry
Contact

Account administrator for special accounts
Contact

Stock exchange listings
Public announcements

January 1 to December 31
December 31

Notice About Our Shareholder Special Benefit Plan

June 30in March
Mitsubishi UFJ Trust and Banking Corporation
Mitsubishi UFJ Trust and Banking Corporation, Stock Transfer Agency Department
7-10-11, Higashisuna, Koto-ku, Tokyo, 137-8081
Tel. 0120-232-711(toll-free, Japan only)
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Trust Bank, Limited, Stock Transfer Agency Department
2-8-4, Izumi, Suginami-ku, Tokyo 168-8507
Tel. 0120-782-031(toll free, Japan only)
TSE Mothers
Please refer to the Aoyama Zaisan Networks website

Based on our shareholder special benefit plan,(For reference)
1. Due to the dematerialization share certificates, shareholders' address changes, repurchase requests, and such other procedures, as arule, are filled with the account-administrating institutions where shareholders have their accounts (securities companies, etc).
Shareholders are requested to contact their account holding securities companies, etc., for information. Shareholders are remindedthat application filings cannot be made with the administrator of shareholder registry (Mitsubishi UFJ Trust and Banking Corporation).
2. For information on procedures concerning shares recorded in special accounts, shareholders are requested to contact The Sumitomo
Mitsui Trust Bank, Limited, the account administration institution for special accounts. Shareholders are reminded that procedures
cannot be processed by Mitsubishi UFJ Trust and Banking Corporation, which serves as the administrator of the shareholder registry.
3. Dividends hitherto uncollected by shareholders are paid by Mitsubishi UFJ Trust and Banking Corporation, Head Office Branch.

shareholders holding over 10 shares of the company
and listed on the shareholder registry as of June 30,
2012 can choose to receive one of the five products
listed below. The products will be shipped from theend of September.
A Hokkaido Fruit Jellies
B 2 bottles of Kagaya Dressing and 1 set of Kagaya Chirimen Sansho
C 5 kilograms of Koshihikari brand rice produced in Minami Uonuma
D Fureai gift set from Shinshu
E Assortment of hand-stretched somen (Japanese noodles) from Shimabara, 5 types