Full-year Business Summary for Fiscal Year 2013 (23rd period)
January 1 to December 31, 2013

Aoyama Zaisan Networks Provides
the Most Comprehensive Asset Management Solutions
We at Aoyama Zaisan Networks Co., Ltd. have set the management objective of “contributingto the happiness of our customers through the management, administration, and succession ofproperty” and, in accordance with the objective, we are offering one-stop and comprehensive
property consulting primarily to individuals and business owners from the three perspectivesof property succession, business succession, and property management.
At the beginning of 2013, the Japanese economy began to change substantially due toAbenomics, which is centered on bold monetary policies, flexible fiscal policies, and a growthstrategy to stimulate private sector investment. Japan is expected to escape from thedeflationary economy due to these policies, but there are still many challenges to overcome,including slow growth in income, the seemingly insolvable sovereign debt problem of Japan,
and the arrival of a society with higher taxes; so there is no change to the reality that we are ina “period of uncertainty about the future.”
In this tough economic environment, everyone at our company is working together to be anaccessible total assets concierge supporting a life of affluence for each and every one of ourcustomers, and the succession of their property to the people important to them, throughcomprehensive property consulting consisting of “precise analyses of the present state,” “aclear direction,” “specific planning and reliable execution,” and “review on a regular basis.”

President

Masazumi Hasumi

Business Results for Fiscal Year 2013
Highlights of Consolidated Business Results (unit: million yen, rounded down to the nearest million)

Revenue

Ordinary income

10,000250

250

Net income
250

230

218
8,000

7,060

166

6,369
6,000

5,839

100

2,00050

Fiscal Year 2011 Fiscal Year 2012 Fiscal Year 2013 Forecast for(21st period)(22nd period)(23rd period) Fiscal Year 2014
(24th period)

142

150

4,0000

201

200

200

7,627

091

150

1009250

Fiscal Year 2011 Fiscal Year 2012 Fiscal Year 2013 Forecast for(21st period)(22nd period)(23rd period) Fiscal Year 2014
(24th period)

0Fiscal Year 2011 Fiscal Year 2012 Fiscal Year 2013 Forecast for(21st period)(22nd period)(23rd period) Fiscal Year 2014
(24th period)

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.

01-02

Revenue by Segments (unit: million yen, rounded down to the nearest million)

94

100%

1,099

90%

47

53

1,317

1,295

80%
70%
Other revenue

60%
4,616

50%

2,623

3,252

Revenue from sublease
Revenue from real estate transactions

40%

Revenue from asset consulting30%
20%
1,816

10%
0%

Fiscal Year 2011
(21st period)

1,850

1,768

Fiscal Year 2012
(22nd period)

Fiscal Year 2013
(23rd period)

Operating Report
Regarding the Japanese economy in the fiscal year under review, a correction to
the appreciation of the yen and rising stock prices have been seen andexpectations of an economic recovery have been rising against the backgroundof the simultaneous implementation of bold monetary policies, flexible fiscalpolicies, and a growth strategy to stimulate private sector investment, whichhave been implemented since the inauguration of the new administration for thestated goal of restoring a strong economy and in order to eliminate deflationary
sentiment. Looking at the real estate industry, which has a big impact on
Aoyama Zaisan Networks Group, we saw an overall move toward improvementof the vacancy ratios in office buildings within the 5 central wards of Tokyo.
And in the income property market, purchase demand has continued to rise anda movement toward recovery is more foreseeable.
In this environment, Aoyama Zaisan Networks Group has been engaged in theconsulting on the management, administration and succession of personal
properties, business succession consulting for companies, and the property
consulting such as real estate solutions for the effective utilization, purchase,sale, etc. of real estate, which accounts for two-thirds of the property of
citizens, based on the belief that “property acts as the foundation of happylifestyles.” In a turbulent economic environment, in order to survive in a “periodof uncertainty about the future” it is essential to forecast the future economicenvironment, ascertain the current state of the property, and formulate andexecute robust administration plans for management and succession of theproperty or optimal business succession plans. Moreover, based on those plans,
we must continue to execute PDCA (Plan, Do, Check and Act).

Aoyama Zaisan Networks Group adheres to the management principle “Wewill remain your best partner over 100 years” and everyone in our group will
work together so that we can master specialist knowledge, develop our humancapabilities, master the ability to act so that we can meet the expectations ofour customers at all times, and become a group that satisfies its customers as anindependent and comprehensive property consulting company.
Furthermore, we believe that strengthening our sales capabilities, expanding
our sales areas, strengthening our consulting capabilities, and improving ourbrand power are necessary and essential for Aoyama Zaisan Networks to growand develop further going forward. Therefore, on October 1, 2013, we carriedout a share exchange with Nihon Shisan Soken Co., Ltd. (location: Chiyoda-ku,
Tokyo, representative: Yasuo Takano, President and Representative Director),
the partner to the nationwide network of Aoyama Zaisan Networks and acompany offering comprehensive assets consulting that has the sameaspirations as Aoyama Zaisan Networks. The share exchange had the objectiveof increasing synergy effects to the maximum extent and enabling bothcompanies to continue working and growing together and grow into theconsulting company most supported by the customers and it converted NSS
into a wholly-owned subsidiary of Aoyama Zaisan Networks.
As a result of the above, in the fiscal year under review, operating revenue was
6,369 million yen (a 9.1% increase compared to the previous year), operating
income was 160 million yen (a 62.7% increase compared to the previous year),ordinary income was 142 million yen (a 55.7% increase compared to theprevious year), and net income was 201 million yen (a 118.4% increase
compared to the previous year).
03-04

Consolidated Financial Data
Million yen, rounded down to the nearest million

Consolidated Balance Sheet
Term
Item
AssetsCurrent assets
Cash and deposits
Accounts receivable
Real estate held for sale
Other inventories
Purchased receivables
OthersAllowance for doubtful accounts
Fixed assets
Tangible fixed assets
Intangible fixed assetsInvestments and other assets
Total assets

Fiscal Year 2012

Fiscal Year 2013

Dec. 31, 2012

Dec. 31, 2013

1,154746
247
90
161660(22)
3,614
1,922
155
1,535
4,769

2,966
2,588
214
1411−147(10)
1,731
89
431
1,210
4,698

Term

Fiscal Year 2012

Fiscal Year 2013

Dec. 31, 2012

Dec. 31, 2013

Item
Liabilities
Current liabilities
Fix liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Valuation difference on available-for-sale securities
Unrealized gain on securities
Foreign currency translation adjustment
Minority interests
Subscription rights to shares
Total net assets
Total liabilities and net assets

1,148
1,678
2,827

854
1,692
2,546

1,623
1,030
334
258(360)
(360)
−
678
−
1,941
4,769

2,139
1,030
736
372
56(1)
−
6,933
2,151
4,698

Term

Fiscal Year 2012

Fiscal Year 2013

Cash flow from operating activities

227

368

Cash flow from investing activities(1,203)

1,886

Cash flow from financing activities

247(425)

Effect of exchange rate change
on cash and cash equivalents−0

Change in cash and cash equivalents

(728)

1,829

Cash and cash equivalents at start of year

1,474

746

Increase in cash and cash equivalents resulting
from change of scope of consolidation−1

Cash and cash equivalents at end of the year

746

2,577

Consolidated Financial Data
Million yen, rounded down to the nearest million

Consolidated Income Statements
Term
Item
Revenue
Operating cost
Gross operating income
SG & A
Operating income
Non-operating revenue
Non-operating expenses
Ordinary income
Extraordinary income
Extraordinary loss
Net income before income taxes and minority interests
before loss distribution to anonymous association
Loss distribution to anonymous association
Net income before income taxes
and minority interests
Total income taxes
Income before minority interests
Minority interests in income
Net income

Fiscal Year 2012
from Jan. 1, 2012
to Dec. 31, 2012

Consolidated Cash Flows
Fiscal Year 2013
from Jan. 1, 2013
to Dec. 31, 2013

5,839
4,601
1,237
1,139
98
172491
1
0

6,369
5,038
1,331
1,171
160
21
39
142
102
1692

229

(3)

495

224

(2)
98
692

10
214
13
201

Item

from Jan. 1, 2012
to Dec. 31, 2012

from Jan. 1, 2013
to Dec. 31, 2013

05-06

TOPICSTOPIC1

Management integration with Nihon Shisan Soken Co., Ltd.
Strengthening our sales capabilities, expanding our sales areas, strengthening our consulting
capabilities, and improving our brand power are necessary and essential for Aoyama Zaisan
Networks to grow and develop further going forward.
Therefore, on October 1, 2013, we carried out management integration through a share exchangewith Nihon Shisan Soken Co., Ltd., the partner to the nationwide network of Aoyama Zaisan
Networks and a company offering comprehensive assets consulting, converting NSS into a whollyowned subsidiary of Aoyama Zaisan Networks.
<Overview of Nihon Shisan Soken Co., Ltd.>
Location: 1 Kanda-Hirakawacho, Chiyoda-ku, Tokyo 101-0027
Date of incorporation: April 30, 1999
Capital stock: 195.5 million yen (as of October 2013)
Representative: Yasuo Takano, President
Business line: a comprehensive consulting business and, surveys and research related to the property ofindividuals and corporations

TO

PI

CYasuo Takano, President
Nihon Shisan Soken Co., Ltd.

2Incorporation of Aoyama Zaisan Networks USA
In January 2011, Aoyama Zaisan Networks incorporated a local subsidiary Aoyama Wealth Management Private Ltd. in Singapore
providing its customers comprehensive advisory functions that contribute to asset management and preservation.
Going forward, aiming to provide services with even higher added value to our customers from a more global perspective, in October
2013, we incorporated another local subsidiary Aoyama Zaisan Networks USA (a wholly-owned subsidiary of Aoyama Zaisan
Networks) in California, USA.
Name of company: Aoyama Zaisan Networks USA
Location: 825 South Primrose Avenue, Monrovia, California, USA
Date of incorporation: October 17, 2013Capital stock: 100,000 US dollars
Representative Director: Masazumi Hasumi
Business line: asset management and preservation consulting for asset holders in Japan07-08

TOPICSTOPIC

3“ADVANTAGE CLUB” Formation
In 2013, Aoyama Zaisan Networks opened three new locations ofthe real estate joint ownership scheme called ADVANTAGE
CLUB, which we have been operating as part of our property
consulting business in order to meet the asset management needsof our customers.
September 2013: ADVANTAGE CLUB Otemachi
November 2013: ADVANTAGE CLUB Ginza 8-chome
December 2013: ADVANTAGE CLUB Kanda“ADVANTAGE CLUB” is a voluntary partnership contract(monetary investment method) that is formed in accordance with
the Real Estate Specified Joint Enterprises Act to jointly own
high-return real estates and receive the profit distribution.

TOPICOtemachi

Ginza 8-chomeKanda

4Shareholder Special Benefit Plan
Aoyama Zaisan Networks has established aShareholder Special Benefit Plan for thepurposes of expressing our gratitude to all ofour shareholders for their daily support, and toencourage an increase in the number ofshareholders that hold shares of Aoyama
Zaisan Networks in the medium to long termby increasing the attractiveness of investing inthe shares of Aoyama Zaisan Networks.
In the current fiscal year, just like last year, wewill give all of our shareholders benefits thatthey will appreciate.

Select 1 from 10 products worth 3,000 yen
Shareholders who
hold 1,000 sharesor moreShareholders who
hold 10,000 sharesor 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)

* The photographs are for illustrative purposes only.

09-10

Corporate Data
Corporate Data
Name of Company(as of December 31, 2013)

Aoyama Zaisan Networks Company, Limited

Head Office

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

Incorporated

September 17, 1991

Capital stockBusiness line

Executives
President

1,030.81 million yen
Property consulting, business succession consulting and real estate solutions consulting

Number of employees(Group)122 (as of December 31, 2013)

Consolidated subsidiaries

6 companies including Aoyama Estate Co., Ltd., Project Holdings Co., Ltd. andNihon Shisan Soken Co., Ltd.

(from March 28, 2014)

Masazumi Hasumi

Managing Director

Hisao Nakatsuka

Director, Managing Executive Officer

Masayuki Yagi

Director

Yasuo Takano

Director, Executive Officer

Takeshi Matsuura

Director, Executive Officer

Yoshikazu Mizushima

Outside Director

Haruo Shimada

Outside Director

Keiji Watanabe

Outside Director

Michihiro Nagasaka

Standing Auditor

Yoichiro Shimada

Outside Auditor

Keizo Sugita

Outside Auditor

Hiroaki Rokugawa

Executive Officer

Seido Nakatani

Executive Officer

Shinji Shimane

Executive Officer

Takaomi Ogawa

Nationwide Network (35 bases as of December 31, 2013)
Chugoku, Shikoku

KinkiHokkaido, Tohoku

Midori Zaisan Consultants Co., Ltd.

Zaisan Networks Kyoto Co., Ltd.

Zaisan Networks Sendai Co., Ltd.

Zaisan Consultants Tokushima Co., Ltd.

Zaisan Networks Osaka Co., Ltd.

Zaisan Networks Fukushima Co., Ltd.

Aoyama Zaisan Networks Tottori Support

Zaisan Networks Hyogo Co., Ltd.

Aoyama Zaisan Networks Hokkaido Support

Aoyama Zaisan Networks Shimane Support

Seki Soken Zaisan Partners Co., Ltd

Aoyama Zaisan Networks Aomori Support

Aoyama Zaisan Networks Kyoto Nijo Support

Aoyama Zaisan Networks Yamagata Support

Aoyama Zaisan Networks Mie Support

Kanto, Koshinetsu

Aoyama Zaisan Networks Wakayama Support

Zaisan Networks Tochigi Co., Ltd.

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

Zaisan Networks Motegi Co., Ltd.

Aoyama Zaisan Networks
Company, Limited

Zaisan Networks Okinawa Co., Ltd.

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

Aoyama Zaisan Networks Saga Support

Zaisan Networks Nagano Co., Ltd.

Aoyama Zaisan Networks Miyazaki Support

Aoyama Zaisan Networks Ibaraki Support

Tokai, Hokuriku
Zaisan Networks Shizuoka Co., Ltd.
Zaisan Consultants Kanazawa Co., Ltd.

Aoyama Zaisan Networks Kanto Chuo Support
Aoyama Zaisan Networks Denenchofu Support
Aoyama Zaisan Networks Yokohama Support

Meinan Zaisan Advisers Co., Ltd.
Aoyama Zaisan Networks Fukui Support

11-12

Stock Information
Stock Overview

(as of December 31, 2013)

Number of shares in issue

117,096

Number of shareholders

5,377

Number of Shareholders by Category
Individuals and others/5,279 (98.18%)

Total
5,377

Major Shareholders (Top 10)
Name

Other companies/68 (1.26%)
Securities firms/10 (0.19%)
Overseas companies and others/15 (0.28%)

Shares held

Shareholding ratio

MID Investment Co., Ltd.

11,0039.40

Masazumi Hasumi

6,407

5.47

Yasuo Takano

6,000

5.12

Mutsumi Shimada

4,306

3.68

Yoshie Okabe

3,697

3.16

Japan Trustee Services Bank, Ltd. (trust account)

3,266

2.79

Tomio Sugimura

2,475

2.11

Hiroko Iwase

1,848

1.58

Tsuguo Kogure

1,560

1.33

Overseas companies and others/1,248 (1.07%)

Takaaki Odaka

1,179

1.01

Financial institutions/4,480 (3.83%)

Account management institution for
special accounts
Contact

Stock exchange listings
Public announcements

Number of shares held by Category
Individuals and others/95,025 (81.15%)

Total
117,096

Other companies/14,316 (12.23%)
Securities firms/2,027 (1.73%)

Management Principle

Notes for Shareholder
Fiscal year
Base date for the determination of shareholders
with year-end dividend entitlements
General meeting of shareholders
Administrator of the shareholder registry/
Account management institution for
special accountContact

Financial institutions/5 (0.09%)

January 1 to December 31
December 31
in March~ We will remain your best
partner over 100 years ~Core Values

Mitsubishi UFJ Trust and Banking CorporationMitsubishi 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
To be announced on the Company’s website(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.

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 ofconsideration and gratitude.
Management Objectives

1. We will contribute to the happiness of ourcustomers through the management,administration, and succession of property.
2. We aim for the physical and mentalwellbeing of our coworkers.
13-14