Aoyama Zaisan Networks Company, Limited

Integrated Report 2023

Contents
We will remain
your best partnerin 100 years.
We are a comprehensive property consulting firmthat safeguards both assets and the future.

Our Profile

Overview of Aoyama Zaisan Networks …… 4
Our Value Creation Story

Our Value Creation Story ……… 6
Our Vision

Our Vision ……… 8
Our Strategy

Medium-Term Management Plan ……… 9Management objectives❶ We seek to contribute to the happiness of our clients
through the succession, operation and management of property.
❷ We seek to ensure both the physical and mental well-being of the members whom we work with.

Top Message

Presidentʼs Message ……… 12
CFO Message

CFOʼs Message ……… 15
Core values❶ We are committed to helping our clients resolve their asset-related problems,
and we will continue to grow into a company that takes true pleasure in helping our clients.
❷ As we work for AZN, we accumulate virtues and undergo growth
into people with strong interpersonal skills.
❸ We seek to maintain the balance among financial, physical,
and mental resources and to enrich and expand each of these aspects,
enabling our clients to lead happy lives, and us too.
❹ Each of us understands his or her role, and to fulfill that role,each of us seeks to develop his or her wisdom, capacity for action,and interpersonal skills, always displaying tenacity and passion.

Our Value Drivers

Reliable products and services ……… 16
A reliable organization ……… 18
Consultants ……… 19
Our Sustainability

Introducing the Board of Directors …… 20
Corporate Governance ……… 22
Message from Outside Directors ……… 24
Sustainability Management ……… 26
Our Data

Financial & Non-financial Data
(Summary) ……… 30● Editorial Policy of this Report
This report primarily covers performance for FY2022 (January 1, 2022 to December 31, 2022). But
some parts deal with data or events from prior years or from most recent years. Essentially, the subjectof this Report is Aoyama Zaisan Networks and its group companies (11 consolidated subsidiaries) asof December 31, 2022.
● Notes on future prospects
The contents of this Integrated Report that are not historical facts are future forecasts made by Aoyama
Zaisan Networks Company, Limited based on its outlook and plans. These future forecasts containfactors including risks and variables; actual outcomes and performance may vary from them.
● Published in May 2023

Our Profile

Overview of Aoyama Zaisan Networks

Growth trajectory

Our business model and 100-year property consulting
from property consulting to real estate transactions, withproperty consulting revenue being our main source ofprofits.
Through comprehensive property consulting for theperpetuation of families and businesses, Aoyama Zaisan
Networks contributes to the happiness of its clients. We
will continue to grow sustainably to become Japan's No.
1 comprehensive property consulting firm, supported byclients who know, "When it comes to property, it's Aoyama
Zaisan Networks."

Aoyama Zaisan Networks (AZN) is a property consulting
group serving both individual asset owners and businessowners. After commencing business in 1991 as a groupcompany of Funai Consulting Incorporated, the firm
focused initially on the real estate business. With the global
financial crisis of 2008 as a turning point, we expanded
our business from a short-term profit taking structure
centered on resale of real estate to a long-term, total
optimization standpoint on property consulting for ourclients as our main focus. Our revenue classifies broadly■ Revenue from property consulting■ Revenue from real estate transactions■ Revenue from resale of real estate■ Revenue from subleasing and other income⚫ Ordinary profit(Sales: million yen)
36,00032,00028,000(Ordinary profit: million yen)
7,000
6,000

24,0005,000

20,0004,000

16,0003,000

12,000

2,000

8,000

1,000

4,000
0

0
First Medium-Term Management Plan

Second Medium-Term
Management Plan

-1,000-2,000-3,000-4,000

2006

2007

2008

Period of growth in property
consulting services for individual
asset owners

2009

2010

2011

Comprehensive property consulting Property succession/operations/management and business succession
Consulting & Analysis of Current Situation

Planning & Proposals

Action & review

Analyzing issues, presenting options for countermeasures, and accumulating data through the ART system
Interview anddocument
collection

Analysisof Current
Situation

Identifying
issues

Proposals⚫ Consulting on property succession, operations,management, and business succession⚫ Consulting products and services
Short-term plan

ActionInvestigation &review

Mid- to long-term plan

2012

Expansion of the fieldof business succession
consulting for corporate
owners as a result of mergers

2013

2014

2015

2016

2017

2018

2019

Period of growth as acomprehensive property consulting
firm

2020

2021

2022

(year)On to the new stage by
expanding collaborations
and getting fortified withtechnologies

The Aoyama Zaisan Networks business model involves
building relationships of trust by contributing to thehappiness of its clients and earning ongoing property
consulting revenue from these long-term relationships.
Our consulting process is firmly based on interviews withour clients and collection of documentation. We provide
long-term support to our clients by repeating this cycle:
analysis of the current situation, identification of issues,planning and proposals, implementation, verification, andreview by our own analysis tools and experts. By utilizing
AZN Group's proprietary ART system, we provide highquality consulting services ranging from analysis of current
situations to planning and proposals.
In the fields of property and business consulting, AZN
is committed to 100-year property consulting to look after
property not only for the current generation, but also forthe next generation and the following generations. Working
from a total optimization standpoint, we are always striving
to solve issues related to the succession, operations, andmanagement of property as well as business succession

by building long-term relationships with our clients andproposing methods to smoothly facilitate succession andoperations. By doing this, we maintain and expand the sizeof our clients' assets and perpetuate their families and theirbusinesses, providing the foundation for AZN Group toearn stable revenue.
⚫ 100-year property consulting
A business model in which long-term relationships are builtwith clients, which generates long-term revenues throughconsulting from the current generation to the next generation
and beyond.

Scale of Asset ValueBusiness

Third Medium-Term
Management Plan

2005

100-year property consulting offering long-term support for the current generation, next generations, and third generation*From 2019 onward, revenue from subleases is included in revenue from real estatetransactions and other revenue is included in revenue from property consulting.

⚫Transitions in business portfolio and net sales

2004⚫ Business model

Third-generation manager
Third-generation owner
Next-generation manager
Next-generation ownerCurrent manager
Current owner
Property succession/operations/management and business succession
Time

The market environment & our strengths
Business line
Comprehensive property consulting, which lies at thecore of our business, is a consulting service designed
to achieve the optimal property structure to perpetuate
our clients' families and businesses. We offer a one-stop
consulting service for the succession, operation, andmanagement of property and business succession for
individual asset holders (landowners and financial asset
holders) and corporate owners.
Our group supports total optimization planning andimplementation for our clients through expert perspectives,with more than 150 national certificates holders employed
by AZN, and through our unique analytical methods built
up over many years.

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Aoyama Zaisan Networks ｜ Integrated Report 2023

⚫ Business and service overview
Businessline
Clients

Comprehensive property consulting(property succession/operations/management and business succession)

Individual asset
ownersCompany owners⚫ Inheritance strategy⚫ Effective utilization of real estate⚫ Utilization of large expanses of land
⚫ Buying and selling of realestate, and more

⚫ Business succession (supporting successors)⚫ Mergers and acquisitions⚫ Support for business transitions
and closures⚫ Financial improvement, growthstrategies, and more

(average assets: 1 billion yen)

List ofServices⚫ Advantage Club, regional development projects,
overseas operations, IFA

In January 2015, Japan’s Inheritance Tax Act wasamended, reducing the basic inheritance tax exemption
and raising the maximum tax rate to 55%. This has resulted
in a sharp increase in the number of persons now subject totaxation, as well as a significant increase in the percentage
subject to taxation. As a result, we have received anincreasing number of inquiries from individual asset owners,
and some of them have become our clients.
In terms of business succession, Japan’s declining
birthrate and aging population have caused a chronic
shortage of suitable successors for businesses. By 2020,
the average age of company presidents in Japan was inexcess of 60 years, and the percentage of companies
without designated successors hovered around 60%.
We anticipate that our clients' needs for the succession,

operation and management of their property as wellas succession of business will continue to expand. Byleveraging AZN’s strengths as a group and consistently
working to resolve these issues, we will continue toaccompany our clients into the future.
⚫ Strengths of Aoyama Zaisan Networks

1

Expert insights and application of technology

2

Ability to propose and implement total optimization
based on 5 standpoints

3

Comprehensive property consulting services for assets
and business

4

Reliability that comes from being listed on the stock
exchange, and neutrality that comes from being independent

Aoyama Zaisan Networks ｜ Integrated Report 2023

5

Our Value Creation Story
AZN Group's Management Objectives are "To contributeto the happiness of our clients through the succession,
operation and management of property" and our mission is"To achieve the optimal property structure through consulting
on the succession, operation, and management of property
so that our clients’ families and businesses can develop andprosper."
In order to realize this mission, AZN Group exists to "deliver
optimal proposals from a bird's-eye, big-picture perspectivein order to solve our clients' problems." We contribute to ourclients’ happiness through the enrichment of their property,

bodies, and minds by solving property-related problems thatexists in society, in the belief that the enrichment of social
property will lead to sustainable growth for society. We
have outlined the process of value creation as shown in the
diagram below.
Firstly, as an AZN comprehensive property consulting firm,
we provide total optimal solutions to the property concerns ofasset owners and business owners that have some bearing
upon social issues.
We contribute to our clients’ happiness by helping toresolve issues and eliminate concerns, and by helping tobuild relationships of mutual support between property
and business/family for our clients. Our clients' families willcontinue to grow and prosper, passing on better assets andbetter businesses to the next generation and onwards to thefollowing generations.
Our society will see the benefits of these businesses andassets growths, aiding in the achievement of a sustainable
society in which communities and society prosper,
employment grows, and quality services continue, which inturn will support the sustainable growth of AZN Group. This
enables us to realize our management objectives and ourphilosophy, which in turn will lead to creation of value for ourclients and for society.
As times change, so do social issues and our clients'
property concerns. For new concerns and new social issues,
we envision a cycle of processes in which we, as a group of
experts, provide new solutions to help our clients develop
further. This is the value creation story of our AZN Group.
In the future, we will focus not only on succession andvalue creation around property and business, but also on
helping to create value to pass on the family's philosophy
and aspirations.

⚫ Value creation process at Aoyama Zaisan Networks

Social issues

Business model

Value creation
Outcomes⚫ Achieve management objectives ⚫ Create new business and sustainable growth ⚫ Create human resources⚫ Enhance employees' material and mental well-being ⚫ Build social trust

Property concerns

Aoyama Zaisan Networks

Clients

SocietyInheritance

Assets and business/family mutually support each other

Assets (business/family) and society mutually support each other

Many property-related
concerns have becomesocial issues
To whomshould I give myinheritance ...?

Comprehensive
property
consulting

I’m concerned
about future living
expenses ...

I can’t pay
inheritance taxes ...

We have no
successor ...

Operations

Preparation for theunexpected

Achieving happiness forour clients by enhancing
their financial, physical, andmental resources

Management

Concerns
We’re notprepared for an
emergency ...

The family isdrifting apart ...

Business baseConsultants with strong
interpersonal skills

Rural property
values are
declining ...

Reliable products andservices

A reliableorganization

Sustainability management
Promoting Digital
Transformation (DX)

Instilling management
philosophy

Strengthen human resources and give women
opportunities to play more active roles
Contributing to society

Stronger governance

Smooth successionof management

Reform of work styles

Management andmaintenance ofproperty

Smooth successionof property

Employment is safeguarded
by the company’s sustainable
development

When a good company
survives, good service survives

Sustainable social
growth throughasset enhancement
Property, which is social capital,
functions effectively

As businesses and families
prosper, local communities arerevitalized

Securing funds to pay
inheritance tax

Achieving optimal asset composition
Expansion of assets included inconsultin

Promoting Task Force on ClimateRelated Financial Disclosures (TCFD)

Concerns and worries about assets diversifying due tothe changing times

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Aoyama Zaisan Networks ｜ Integrated Report 2023

Aoyama Zaisan Networks ｜ Integrated Report 2023

7

Our Vision

Our Strategy

Medium-Term Management Plan

Third Medium-Term Management Plan

Japanʼs top comprehensive property consulting
firm supported and chosen by many clients as“When it comes to property,

it's Aoyama Zaisan Networks”

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 Management
Plan, based on the 4 standpoints outlined on the following
page.

Our
Vision⚫ Third Medium-Term Management Plan (Overview)

Second Medium-Term
Management PlanFirst Medium-Term
Management Plan

FY2019–2021

FY2014–2018

Period of growth expansion
as a property
consulting firm

“When it comes toproperty, it's Aoyama
Zaisan Networks”⚫ Shifts in operating profit in the Third Medium-Term Management Plan

Period of
expansionand growth(million yen)

We have operated as a property consulting company oﬀering real estate solutions.

Growth period

We have expanded our business in Japan and overseas as a consulting company“corporate owners,” marking our 30th anniversary in 2021.

5,000

2,629

Venture period

Having declared our management objectives as, "We seek to contribute to1,464

the happiness of our clients through the succession, operation and management ofproperty," we will continue to make further strides to realize our long-term vision tolook after the assets of our clients and, by extension,160

of society, and to lead them into the future.

2013

445

485

2014

2015

751

2016

1,603

1,094

2017

2018

First Medium-Term Management Plan

Aoyama Zaisan Networks ｜ Integrated Report 2023

4,500

3,300
(forecast)providing comprehensive property-related solutions to “individual asset owners” and8Japan’s top comprehensive
property consulting firm
supported and chosen by
many client as~

as a group company of Funai Consulting Incorporated.

FY2022–2024

as a property
consulting firm

as a property
consulting firm

Aoyama Zaisan Networks started business in 1991

Third Medium-Term
Management Plan

Period of growth

Period of venture

the company we
aim to become

2019

1,856
1,303

2020

2021

Second Medium-Term
Management Plan

2022

2023

2024 (year)

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

1

Standpoint

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

Standpoint12Standpoint

3

Standpoint

4

We offer property consulting

Growing into a consulting

Proactive approach to social

services via smartphone and online

group with strong

contribution activities

communication tools as standard

interpersonal skills

services

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 inconjunction 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.

⚫ The relationship between strategic individualized
services and comprehensive property consulting
services
ADVANTAGE
CLUB
Effective realestate use
consulting

Family officeservice

Regional
creative
development
consulting

2

Group 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
CLUB

Purchase
consulting

Business
succession fund

STO (Security Token
Offering) 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

ART
systemReceiving 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
systemApplication via smartphone(ADVANTAGE CLUB, etc.)

Utilize digital platforms(From 2022
onward)STO (Security
Token Offering)business

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 ART
system, which was developed and introduced by theContact point with new client

Business
succession fund(independent financial
advisors)

Standpoint

BeforeStandpoint
Consulting on
financial instrument
services by IFA

provide 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 individualized
services, 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 a
digital window into the market.

⚫ Improving productivity and customer service with DX

After
Purchase
consulting

Comprehensive
property consulting
services

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 to

For more nationwide
client Providing webbased consulting

3

Growing 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 a
consulting group that possesses strong interpersonal skills
combining integrity, kindness, and compassion. Amongthe interpersonal skills required, AZN considers a senseStandpoint4of 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

11

Top Message

Presidentʼs Message

Enhancing customer support by
accelerating DX and full efforts toimprove interpersonal skills
To meet the growing need for consulting on property succession and management, we are focusing on
recruiting and training human resources and accelerating the development of support systems for our
consulting staff and services.
2023 is the second year of our Third Medium-Term Management Plan.
We are undertaking diverse measures to reach our goals by 2024, the final year of the Plan.

Growing demand for property and business succession—How do you envision the business environmentchanging?
For the past three or more years, there have been special
circumstances: the COVID-19 pandemic. While many
companies were forced into stagnation, several others
increased their borrowings. Repayments, deferred due tocertain policy measures, will now begin in earnest. In addition,
we often hear from age group “baby boomers” approaching
their late 70s about asset inheritance or management andfrom small business owners considering passing on theirbusinesses to the next generation while they are concerned
about their current cash flow. From now on, together withbusiness succession, supporting restoration of financial
soundness will be a major theme for our Group.
In regard to property succession, the number of asset
owners who own real estate is declining overall. However,
metropolitan real estate prices are on an upward trend,
especially in Tokyo and the three neighboring prefectures,
which drives the need for strategic inheritance tactics
inheritance strategy, including securing funds to pay
inheritance taxes. Land prices are also rising in someregional cities, with many asset owners—and not only in
the Tokyo metropolitan area—seemingly concerned aboutproperty succession.
Considering the Group's resources to provide services
to these clients, it is clear that some challenges exist. As
in many industries, the shortage of human resources,
especially in recruitment and training of consultants facing
clients, is an extremely significant issue. To expand ourbusiness, we need to increase the number of consultants
while maintaining and improving the quality of our services.

President

Masazumi Hasumi
12

Transitions in numbers of clients and property consulting sales
Property consulting sales (Unit: Million yen)

Numbers of clients (Unit: Individuals)
6,204

5,806

5,564

5,545

4,909

1,752

2018

1,823

2019

1,905

2020

Consultants cannot be trained overnight; however,if they are cultivated as slowly as in the past, We won’t
be able to respond to the rapid changes in the businessenvironment. For this reason, our Group is working on
promoting DX to support consultants in their work.
An example is the development and use of the ART
system, which systematizes the expertise and skills ofskilled consultants. When interviewing clients, having
the skill to ask the correct questions without missing thepoint is crucial. The ART system assists consultants inthis process and carries out simulation calculations suchas asset composition studies on their behalf, allowing
consultants to concentrate on communicating with clients.
However, at present, this system has not reached its fullpotential. We also believe that DX will help our consultants
develop faster. We will continue to improve and expand
the system and provide training for consultants to achieve
tangible results, such as greater productivity and humanresource development.

Advantage Club® performance exceeded expectations—Can you talk about the progress of the Third
Medium-Term Management Plan?
In 2022, the first year of the Plan, progress wasachieved as planned. For example, in our mainstay
property consulting business, our number of clients andour sales both grew.
One of the important cornerstones of our Third
Medium-Term Management Plan is improving the quality
and expanding the quantity of our client services throughstrategic individualized services and comprehensive
property consulting services. Our strategic individualized
services comprise services, including Advantage Club, areal estate joint ownership system with contracts startingat 10 million yen per unit; regional creative development
consulting, which contributes to regional revitalization

2,076

2021

2,377

2022

2023 (forecast)through development and operation of public real estateand other assets; consulting on effective utilization ofland, which helps clients make effective use of their land,and several more. We offer these strategic individualized
services to new clients in order to build trust. We thenanalyze the current status of the property using the ART
system to identify issues and make recommendations
to resolve them, which leads to comprehensive property
consulting.
Within our strategic individualized services in 2022, theperformance of Advantage Club exceeded expectations.
We have also seen a positive response to our regional
creative development consulting, and have madesolid progress in laying the groundwork for each of ourindividualized services. However not all strategic services
were performing good enough yet and we believe thatstrengthening each individually will be key in 2023.

Interpersonal skills of consultants who comeface-to-face with our clients—The COVID-19 pandemic has changed theway people work. Is there a need for change inmanagement methods too?
Many companies now recognize greater diversity inwork styles, including telecommuting. There is also a trend
toward greater employee diversity. Our Group is certainly
headed in that direction. We will be called upon to createa workplace in which everyone can work in comfort
regardless of gender, age, nationality, or other attributes,
and to create an environment where people can continue
to work for the Group even as they act as caregivers forparents or study as mature-age students.
Creating an environment such as this is a challenge
from which we cannot shy away. So how can we ensurethat close communication and productivity are notcompromised when people work from home? We are

Aoyama Zaisan Networks ｜ Integrated Report 2023

13

Top Message Presidentʼs Message

CFO’s Message
The keys to managing human capital in the Group

WisdomCapacity Interpersonal
for action
skillsAiming for business growth and increased
dividends based on improved productivityof human resources
Our 2022 financial results met the targets of the Third Medium-Term Management
Plan, so the first year of the plan got off to a great start. We will strive to respondto market needs that are expected to expand, while we improve our consultantsʼ
capacity and productivity through DX measures and other means.

Favorable external environment, with interim targets achieved
currently discussing various approaches and building
our expertise through a process of trial and error. As we
pursue these efforts, we hope to increase diversity in ourwork styles and our workplaces.
—Recent years have seen a growing interest in
human capital management.
In a consulting firm, the source of value is the consultant,
who is, of course, human. They meet with clients, listen
to their problems and concerns, and make optimum
recommendations from the client's point of view. To thisend, interpersonal skills are essential. In simple terms, theseare sincerity, honesty, kindness, empathy, consideration,and gratitude. Combining these interpersonal skills withboth wisdom and capacity for action results in high-level
outcomes. This is our approach.
The importance of interpersonal skills also holds truein other workplaces besides consulting. It is essential
to create a pleasant working environment so that eachindividual can enhance his or her interpersonal skills
and fully demonstrate his or her strengths. A highly
motivated, energetic workplace naturally leads to greater
performance. In this regard, we believe that increasing
employee satisfaction is crucial.
Education and employee satisfaction improve wisdom,
capacity for action, and interpersonal skills. The Group
believes that these two factors are the keys to humancapital management.

Focused measures to strengthen governance andexpand business—What initiatives are you pursuing in terms ofstrengthening governance?
WeestablishedtheNominating
Committee,
Compensation Council, and Sustainability Committee in2022. Each of these committees continues to become
more active. For example, the flow of initiatives in the

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Aoyama Zaisan Networks ｜ Integrated Report 2023

Sustainability Committee involves summarizing the resultsof discussions held by employee-led subcommittees
and reporting these to the Board of Directors, whichthen approves and implements any measures. Someof the measures discussed by the subcommittee on
work styles have already been approved and entered
the implementation phase. Through this initiative, wehave expanded the mechanism by which opinions andideas, discussed mainly by our front-line members, canreach management. We believe that this has increased
the momentum of improvement for workplaces andoperations within the company.
—What are some particular priority themes for
future business growth?
The most important theme is enhancing the quality
and quantity of our consultants. While it is is important
we ensure the content of various services is even more
attractive, including strategic individualized services, wewill focus on improving our consultants’ interpersonal
skills, wisdom, and capacity for action.
DX is also essential for this purpose. Our goal is tocreate a system that allows us to provide consulting
services via digital platforms. For example, when a client
is considering purchasing real estate, the consultant
consults the database on the spot using a PC or tablet
and recommends the optimal plan for the client. This is
our vision for the future. This not only increase the value
we deliver to our clients, but also enhance the productivityof our consultants. We may not be able to construct sucha system immediately, but we are moving steadily toward
this vision of the future.
More and more clients are concerned about thesuccession of their assets and businesses. It is our social
responsibility to respond to such concerns to the very bestof our ability. To fully meet this responsibility, we intend
to strengthen our human resource development and DX
initiatives.

—Can you speak about the business environment
and the progress of the Third Medium-Term
Management Plan?
We recognize that the external environment is favorable
at the moment. One factor we are presently viewing withcaution that might prompt future changes in the businessenvironment is the government’s debate over inheritancetaxes. In response to severe fiscal circumstances, it ispossible that taxation will be increased. As the movement
to seriously consider preparedness for inheritance
expands, so do client needs. To support this, we need towork to improve the quality and quantity of our consultants
and to promote DX. This is the biggest theme for Aoyama
Zaisan Networks.
Our Third Medium-Term Management Plan sets anoperating profit target of 35% growth annually on averagethrough 2024. In 2022, profit increased by 41.6%, thus
meeting the target. AZN also achieved its 2022 targets ofa dividend payout ratio of 50% and a dividend on equity(DOE) ratio of 10%. The actual figures were 50.1% and11.0%, respectively. This performance too is according toplan. Our basic policy is to achieve profit growth throughbusiness growth and increase dividends.
—What impact do you anticipate from theexpected rise in interest rates in the future?
Due to the nature of the consulting business, we doTransitions in dividends & dividend payout ratio
InterimEnd of term

Commemorative dividend
38.0(Unit: yen)

35.0

25.0

26.5

28.0
23.0
22.0

2.5
19.5
16.5
12.5

7.0

17.0

14.0

8.5

10.0

11.0

13.0

15.0

Payout ratio 38.3% 35.7% 80.3% 45.7% 50.1% 46.6%
Year2018 2019 2020 2021 2022 2023 (forecast)

Director, Managing Executive Officer

Shintaro Hashiba

not have a strong need to increase assets. In addition,
since 2010, AZN has strictly adhered to a policy of not
owning any real estate for sale. The majority of our assets
held as investments are securities and other items thatcan be converted to cash in the short term. We hold cash
and cash equivalents sufficient to cover labor + sales andadministrative expenses for two years, and we are readyto continue serving our customers even in the event of amajor economic crisis. Even if interest rates rise above acertain level, our financial position enables us to respondto economic conditions, including repayment of loans.

Measures for business growth and ROIC management—Could we hear your thoughts on financial
perspectives for business growth?
Growth through increasing our client base will require us to
improve our consultant capacity and productivity to meetthe needs of our clients. We are undertaking DX as one
solution to this issue. We are also working to expand ourareas of service, including strategic individualized services.
We believe we can expand overall property consulting
revenue by acquiring new clients through diverse services,then connecting them to our comprehensive property
consulting services.
—Can you tell us about measures to increase
corporate value?
Starting in 2021, we have set return on invested capital(ROIC) as internal target figures for each business division.
Each division is tasked with making the most efficient useof the capital it has received. Each division then considers
what must be done to improve its ROIC. With ROIC, it
is easy to create an inverted tree structure and set KPIs.
Each division is required to track KPIs on a monthly basis
and to explain how changes in KPIs have affected ROIC.
Although confusion was experienced in some businessdivisions when the system was first introduced, operational
expertise was gradually accumulated, and it seems that
ROIC management started functioning well in 2022. Of
course, management is also very conscious of ROIC forthe entire company.

Aoyama Zaisan Networks ｜ Integrated Report 2023

15

Our Value Drivers
The role of comprehensive property consulting is tosmoothly facilitate inheritance and business succession
and to achieve the optimal property structure to perpetuatefamilies and businesses.
Until now, AZN has focused on providing comprehensive
property consulting services, but in order to expand ourpoints of contact with new clients, we have established a

Reliable products and services

system of eight strategic individualized services that will see
wider use in our Third Medium-Term Management Plan.
In collaboration with leading partners, we intend toincrease the added value of each strategic individualized
service, and by undertaking DX, we are making
improvements to make our services both easier to use
and more extensive.

Purchase consulting

Family office service

In our purchase consulting services, we not only support
purchases of real estate—we also understand each client's
unique purchasing objectives and provide consistent
support from property selection, purchase, management ofholding period, consideration of sales timing, selection ofbuyers, to post-sale follow-up.

For a family business to endure, maintaining andstrengthening the supportive relationship between thecompany and the founding family is crucial. We provide
long-term support for creating and operating mechanisms
to maintain and strengthen the family unity that forms thebasis of this supportive relationship, through workshops,
preparation of family charters, and support for the operationof family councils.

STEP

1

Analysis of
Current Situation
Interview to identify
problems and provide
adviceADVANTAGE CLUB®

BusinessparticipantsSpecified joint
real estate
ventures

Acquisition

Voluntary partnership
Financialinvestment

Eligible real estate

Rent

Voluntary
partners

Carry out
administrative
work
Managing
Director Aoyama
Zaisan Networks

Tenants

Depending on the voluntary partnership, the type of real estate lease may vary.
"ADVANTAGE CLUB" is a trademark of Aoyama Zaisan Networks⚫ Examples of land utilization methods⚫ Features of AZN Group's
Landowners

Retail stores

Reclassification

Aoyama Zaisan Networks
Real estate Store location
information information

Store location information

Fixed-term lease, exchange of equal value

Tenant companies
Total coordination of
store openings

Residential (detached house rental)

Comprehensive property
consulting (proposals for
effective utilization of real estate)

Residential (apartment, condo)

Request for utilization of real estate

Warehouse

Aoyama Zaisan Networks ｜ Integrated Report 2023

Review whether property
suits intention ofpurchase, whether price isappropriate, etc.

STEP

5

STEP

6

Purchase

Ownership &Operation

Sale

Total support as Aoyama
Zaisan Networks

Post-purchase
operational support

Support during andafter sale1

The one-family
philosophy

62

FamilygovernanceIndividual growth& development5

Non-property
fieldsSynergistic effect3

Businessmanagement &management offamily assets

Contributing tosociety

We develop and operate public real estate through public–
private partnerships, utilizing AZN’s expertise in specified
joint real estate ventures and financing. Specifically, we
commercialize underutilized land owned by local governments
and other entities through more effective utilization, withthe aim of revitalizing regional communities. AZN and its
clients also contribute to the healthy development of local
economies through these investments. The first project of
AZN Group's regional development, Komatsu A×Z Square,
a complex facility next to JR Komatsu Station in Ishikawa
Prefecture, opened in 2017. The second is a land use
project to the west of Tsuruga Station in Fukui Prefecture.
This project is part of the TSURUGA POLT SQUARE otta
complex, which opened in September 2022.

Property field

Consulting on financial instrument services by IFAs*3
Aoyama Financial Service, our consolidated subsidiary,
plays a central role in this, and through group collaboration
with Aoyama Zaisan Networks as an IFA, assists clientswith optimal asset management to meet their objectives
from a comprehensive, long-term standpoint based onsolid analysis of the current situation.
*We will only share information
subject to the client’s consent.

Comprehensive
property consulting

Clients

Financial
instrument
consulting

Business succession fund
We offer optimum plans for companies that areconsidering closure due to difficulties with businesssuccession. Always pursuing the possibility of businesssuccession through downsizing, we offer measures topreserve management assets by systematically providing
employment even in the event of business closure.
Operating profit
surplus

Relatives

The question is who willtake over?

Management
profit deficit

Board member [Management buyout (MBO)]
Third parties [M&A]
Downsized succession

Decision to
downsizing or
discontinue prioritizedover successors

Pursuing possibility of businesssuccession through downsizing

Business discontinued
Proposing measures to minimize burden
on management and employers

Aoyama Zaisan Networks has acquired trademark rights to the term "downsized succession."

STO*4 business
The revision of the Financial Instruments and Exchange
Act in 2020 made it possible to issue digital securities,
and we plan to partner with Hash DasH Holdings, which
possesses blockchain technology, to offer incomeproducing real estate to clients 24 hours a day, 365 daysa year, in small amounts. AZN Group will source incomeproducing real estate to back the digital securities soldby our partnering brokerage firms, thus providing a new
product.
Hash DasH
Investments

Smartphone

Dividends

Matching

Use of ART system*1 Share of cumulative total assets of voluntary partnerships under the Act on Specified Joint Real Estate Ventures (as of December 31, 2021) *2 As of December 31, 2022

16

Selecting property
information
Visit to proposed property

State of management?

a bias toward their respective areas of expertise. On the other
hand, since AZN assigns each job to property consulting
teams with specialized skills, we are able to provide one-stop
proposals featuring total optimization methods of utilization
best suited to the land, after first confirming the overallsituation of the property, taking into consideration various
conditions such as verification of cash flow and selectionof construction providers, design companies, construction
companies, and operating companies.

Childcare, education

3

4

We assist our clients in planning and implementing effective
utilization of land in the Tokyo metropolitan area. AZN'steam of experts in effective land utilization works to gather
information and consider problems related to your land or
buildings, such as underutilized land, unprofitable land,vacancy issues, or deteriorating buildings, and proposes thebest utilization of real estate to solve your problems.
In general, proposals from companies involved in theeffective use of land tend to be partially optimized, skewed by

WelfareSTEP

Review

Succession ofbusiness and assets

Effective real estate use consulting

Medical42

Regional creative development consulting
Distributionof profit

Based on the Act on Specified Joint Real Estate Ventures,
this is a real estate leasing system that jointly purchases
high-value real estate in central Tokyo and receives income
from real estate leasing. Clients can invest from unitsof 10 million yen, stable income can be expected, andthe real estate management system is unparalleled. As
of December 31, 2022, AZN had 63 partnerships withcumulative total assets of more than 110 billion yen and No.
1 market share.*1 Our target for 2023 is 32.5 billion yen of
new investment. In order to make our services available to
new clients, we have been working with financial institutions
since 2021, and have formed partnerships with 40
institutions*2 to date. As the market leader, we will continue
to play a role in driving the market.

STEP

STEP

Proposal & Visit

Collaboration

Real estate

Shift to ST

Provided throughsecurities markets

Broad base ofindividual investors*3 IFA: Independent Financial Advisors *4 STO: Security Token Offering
Aoyama Zaisan Networks ｜ Integrated Report 2023

17

Our Value Drivers A reliable organization

Consultants

One-stop solutions utilizing the power of the Group and its network

Our strengths lie in expert insights and interpersonal skills

global comprehensive property advice, international realestate product development, financial product brokering,
and assistance with non-property succession.
Affiliated corporations include law firms, tax accountant
firms, and social and labor insurance firms, as well as joint
ventures with partners who have strengths in property
succession and business succession. This affords ourclients a broad choice of the best options.
We have also established the AZN National Network,
which connects accounting and tax accountant firms
located throughout Japan. As of January 2023, thenumber of member firms had reached 95, making AZN's
high-quality services available nationwide in Japan.
We intend to continue strengthening our organization to
improve the quality of our services.

Aoyama Zaisan Networks is a property consulting
company that not only provides consulting services, but isalso capable of delivering proposals for solutions.
This is enabled by specialized divisions within thecompany. These are the Consulting Division, which
provides consulting services, and the Real Estate Division,
which is responsible for the creation, operation, andmanagement of real estate products that meet the needsof our clients, with more than 150 national certification
holders on staff.
Through close collaboration with our consolidated
subsidiaries, affiliated corporations, and joint ventures, theGroup is able to provide one-stop solutions to a broad
range of client issues. Our consolidated subsidiaries provide
region-specific property consulting, real estate management,● Aoyama Zaisan Networks Group Structure

Comprehensive property consulting forproperty succession, operations, and management

Education⚫Using the ART system⚫Consultant education program⚫Consulting Education Center

Consulting Department

Our consultants, who are professionals in tax, finance,
real estate, and other fields, serve as the face of Aoyama
Zaisan Networks and provide consulting services directly
to our clients. We employ 203 consultants, which isapproximately 2.1 times the number at the end of 2014.
The comprehensive property consulting services
that our consultants provide have two distinguishing
characteristics.
The first is achieving total optimization by combining
expert insights. Succession, operation, and managementof property and business span very diverse fields, including
tax, legal, insurance, real estate, and management. If eachspecialist provides advice only in his or her own respective
field, inconsistencies can arise. However, AZN is able topropose and support the total optimization of succession,
operation, and management planning and implementationthat takes into consideration all of these fields.
At AZN, we believe it is crucial to help our clients lookforward to a better future. Our goal is to set our clients
upon a path that will ensure their families’ wellbeing for the
next 100 years. We firmly believe that our responsibility as
consultants is fulfilled only when our clients are satisfied
with our solutions.
Our consultants' outstanding expertise, coordination
skills, and wealth of experience enable us to provide suchconsulting services. Moreover, our Consulting Advisory,
Legal, and Business Development Divisions, which

include certified public accountants and tax accountants,
provide strong backup with advanced expertise.
The second distinguishing characteristic is ourinterpersonal skills. There is no single "right" way topass on your property or business. Perhaps you wantyour children to take over your business, or you want toliquidate it in your own time. Some people want to focus
their wealth-giving on those who will succeed them, whileothers want to distribute their wealth equally among theirchildren. What’s important is seeking the best for eachclient, rather than any single logical "correct" solution.
For this reason, Aoyama Zaisan Networks consultants
are required to possess a broader range of knowledge,balance, presentation skills, and the ability to think fromthe client's standpoint than ever before. It is essential tohave the mindset of wanting to resolve clients’ problems,
and to have the interpersonal skills (compassion) to put
ourselves in each client's position and to work together
with the client.
AZN focuses on instilling interpersonal skills, and ourconsultants possess not only specialized expertise but
also strong interpersonal skills. We also have mechanisms
for sharing and deepening the knowledge of our consultant
members. This system is what enables us to provide 100year property consulting to deliver satisfaction not only to
our clients personally, but also to the next generation andon to the third generation.

Specialized departments to support consultants
Real Estate Business Department

Business Development Division

Consulting Advisory Department

Legal Department

Formulation, operation, andmanagement of real estate products
tailored to client needs

Support from tax accountants andothers in structuring and managementof various products

Tax-related support from tax
accountants, certified public
accountants, and others

Support for risk managementwith legal expertise

Affiliated firms

Consolidated subsidiaries

Certified public tax accountancy firms, social
and labor insurance firms, law firms

Nihon Shisan Souken Co., Ltd.

Aoyama Estate Co., Ltd.

Comprehensive property consulting services
and consultant training services for individualand corporate assets

General property management (PM) operations,
including real estate solution operations, andlease management of properties owned by AZN
and its clients

Aoyama Financial Service Co., Ltd.

Aoyama Family Office Service Co., Ltd.

Financial instruments intermediary business

Consulting in non-property fields for families
owning family businesses

Aoyamagodo Tax Corporation
Zeimu Sogo Tax Corporation (Certified Public Tax Accountants)
Proggest Certified Social Insurance and Consultant Office

The basic capabilities ofany consultant are wisdom,
capacity for action, andinterpersonal skills. We
provide training to developthese capabilities fromthe two perspectives ofcomprehensive sales skills
and specialist skills.

Educational system

Major tax accountancy firms, major law firms, etc.

Comprehensive
sales skills

Further developing agroup of professionals

Specialist
skillsJoint venture companies

Aoyama Zaisan Networks Kyushu Co., Ltd.

Aoyama Zaisan Investments Co., Ltd.

Shinsei Aoyama Partners Co., Ltd.

Comprehensive consulting services related tobusiness succession and asset utilization

Financial and accounting consulting services led
by certified public accountants and licensed tax
accountants

Management of business succession funds

Aoyama Wealth Management Pte.Ltd.

PT Aoyama Zaisan Networks INDONESIA

Comprehensive overseas property advice

International real estate product development
3 other companies●Developing a group of professionals

Investment by Shinsei Bank Group and our Group (50% each)

WisdomInterCapacity
personal
for action
skillsWisdomInterCapacity
personal
for action
skillsNext Navi Corporation
Comprehensive consulting for businesssuccession and post-succession
Investment by Nihon M&A Center Holdings Inc.
and our Group (50% each)

As of May 1, 2023

18

Aoyama Zaisan Networks ｜ Integrated Report 2023

Aoyama Zaisan Networks ｜ Integrated Report 2023

19

Our Sustainability

Introducing the Board of Directors

Director

Masazumi Hasumi
President

August 1983
Joined Aoyama Audit Corporation
November 1991 Joined Yamada & Partners Accounting
OfficeDecember 1996 President of Proggest Co., Ltd.
(company name changed to Proggest
Holdings, Ltd. in July 2005)
July 2005
President of Proggest Co., Ltd. (current:
Aoyama Zaisan Investments Co., Ltd.)
September 2008 Director of the Company
October 2008
President
August 2016
Business Succession Navigator
Corporation(currently Next Navi), President
June 2017
PT Aoyama Zaisan Networks
Indonesia, Director (current position)
March 2018
Chairman of Nihon Shisan Soken Co.,
Ltd. (current position)
October 2020
Aoyama Financial Service Co., Ltd.
Representative Director
January 2021
Aoyama Family Office Service Co., Ltd
President (current position)

Masayuki Yagi

Director, Managing Executive Officer
April 1990
September 1991
March 2006
January 2011
March 2013
March 2014

January 2021

June 2021
January 2022
March 2022
March 2022

Joined Murakami Corporation
Joined the Company
Director, Executive Officer, and Manager of First
Business Department
Executive Officer of the Company
Manager of Individual Asset Consulting Department
Director, Executive Officer, and General Manager ofBusiness Division
Director, Managing Executive Officer of theCompany
Director, Executive Officer, and General Manager ofBusiness Division
Director, Managing Executive Officer of theCompany
General Manager of Business Division andGeneral Manager of Real Estate Division II
Business Succession Navigator Corporation(currently Next Navi), Director
Director, Managing Executive Officer, and General
Manager of Administration Division of the Company(current position)
Director of Aoyama Estate Co., Ltd. (current
position)
Director of Aoyama Zaisan Investments Co., Ltd.
(current position)

Takeshi Matsuura

Director, Managing Executive Officer
April 1991
May 1995
October 2000
January 2005
January 2006
March 2007
January 2011
March 2014
March 2016
June 2017
January 2021
January 2022
March 2023

Joined Daiwa House Industry Co., Ltd.
Joined Nissho Iwai Real Estate Corp. (current: Sojitz
Corporation)
Joined the Company
Executive Officer, Manager of Real-estate
Department
Funai Estate Co., Ltd.
(currently Aoyama Estate Co., Ltd.)
President
Director, Executive Officer, and Manager of Business
Division 6
Executive Officer, Manager of Real-estate
Department
Director, Executive Officer, and General Manager ofReal Estate Division of the Company
Director, Managing Executive Officer of the Company
General Manager of Real Estate Division
Director of Shinsei Aoyama Partners Co., Ltd.
(current position)
Director, Managing Executive Officer of the Company
General Manager of Real Estate Division I
Director, Managing Executive Officer of the Company
General Manager of Real Estate Division (current
position)
March 2022 Director of Aoyama Financial Service(current position)

Michihiro Nagasaka
Director

April 1985
March 1992
December 2010
March 2014
April 2015
July 2021
March 2022

Joined Wakabayashi Law Office
Joined Nihon M&A Center Inc.
Manager of Business Promotion
Department
Outside Director of the Company
Manager of Sales Support Department,
General Planning Division of Nihon M&A
Center Inc.
Business Succession Navigator
Corporation (currently Next Navi),
Director (current position)
Director of the Company (current
position)

Haruo Shimada
Director Outside
April 1975
April 1982
March 1986
June 2000
March 2007
April 2007
May 2015
January 2016
April 2017
February 2021

Independent

Associate professor of Faculty of
Economics, Keio University
Professor of Faculty of Economics, Keio
University
Visiting professor of Massachusetts
Institute of Technology
Research Center for Advanced Scienceand Technology, the University of Tokyo
Visiting Professor
Outside Director of the Company (current
position)
President of Chiba University ofCommerce
Outside Director of Okaya & Co., Ltd.
(current position)
President of Shimada Sogo Kenkyujo(current position)
Chairperson of the Board of Trusteesof Tokyo Metropolitan Public University
Corporation
Outside Director of Tech I.S. Co., Ltd.
(current position)

Keiji Watanabe
Director Outside

Independent

July 1987

Aoyama Audit Corporation(current: PricewaterhouseCoopers Aarata
LLC), Representative Partner
April 1996 Joined Tohmatsu & Co.
(current: Deloitte Touche Tohmatsu LLC)
Representative Partner
June 2000 Outside Director of Ichiyoshi Securities Co.,Ltd.
July 2003
Deloitte Touche Tohmatsu Global
Middle Markets Leader
June 2008 Outside Director of ASAHI KOGYOSHA CO.,LTD. (current position)
June 2010 Outside Director of SBI Holdings, Inc.
March 2011 Outside Director of the Company (current
position)
June 2017 Outside Director of SBI Insurance Group Co.,
Ltd. (current position)
June 2017 Outside Audit & Supervisory Board Memberof Hokuetsu Kishu Paper Co., Ltd. (current:
Hokuetsu Corporation) (current position)
June 2018 Outside Director of UKAI Co., Ltd.

Audit & Supervisory Board Member
Hiroyuki Fujita

Hisao Nakatsuka

Hiroaki Rokugawa

OutsideOutsideOutsideAudit & Supervisory Board Member
Independent

April 1989

Takaomi Ogawa

Shintaro Hashiba

Shinji Shimane
Director, Executive Officer

April 2004
March 2018

September 1992 Joined Takano Yasuo Zeirishi Jimusho(current: Zeimu Sogo Tax Corporation)
August 2003
Director of Funai Zaisan Consultants
Keiyo Co., Ltd.
(currently Nihon Shisan Soken Co., Ltd.)
December 2009 President of Funai Zaisan Consultants
Keiyo Co., Ltd. (currently Nihon Shisan
Soken Co., Ltd.)
October 2013
Executive Officer, General Manager of
NSS Division of the Company
March 2016
Director, Executive Officer, General
Manager of NSS Division
June 2017
President of Nihon Shisan Soken Co.,
Ltd. (former: Nihon Shisan Soken
Consultant Inc.) (current position)
April 2020
Representative Director of Nitto
Fudosan Co., Ltd. (current position)
January 2022
Director, Managing Executive Officer of
the Company
Consulting Business Supervisor andGeneral Manager of NSS Division(current position)
March 2022
Director of Aoyama Financial Service
Co., Ltd. (current position)

April 1987

October 1995

March 2018

Director, Managing Executive Officer

20

August 1995
October 2000

Aoyama Zaisan Networks ｜ Integrated Report 2023

Director, Managing Executive Officer
Joined The Kyowa Bank, Ltd. (current: Resona
Bank, Limited)
October 2003 General Manager of Shin-Yurigaoka Branch
October 2004 General Manager of Tokyo Central Marketing Division 1
July 2008
General Manager of Shin-Toshin Marketing Division 3
May 2014
Director of J-COM Co., Ltd. (current: LIKE, Inc.)
Deputy General Manager of Sales Division
and General Manager of Business
Development Division
August 2014
Director of J-COM Holdings Co., Ltd.
(current: LIKE, Inc.)
November 2015 Joined the Company, General Manager ofManagement Planning Office
August 2017
Executive Officer, General Manager of
Administration Division
March 2020
Director, Executive Officer, General Manager
of Administration Division
July 2020
Director, Executive Officer, General Manager
of Management Planning Division
January 2022 Director, Managing Executive Officer of the Company
General Manager of Corporate Planning
Division (current position)
March 2022
Aoyama Financial Service Co., Ltd.
President (current position)
March 2022
Director of Aoyama Zaisan Networks Kyushu Co.,
Ltd. (current position)

Joined Ota Showa Audit Corporation(current: Ernst & Young ShinNihon LLC)
October 2000
Joined Avaya Japan Ltd.
September 2001 Joined Proggest Co., Ltd.
(currently Aoyama Zaisan Investments
Co., Ltd.)
August 2006
Director (concurrent)
January 2016
Representative Director of Shinsei
Aoyama Partners Co., Ltd.
(current position)
March 2016
Director, Executive Officer
Business succession consulting
General Manager of Business Division
January 2021
Director, Executive Officer
General Manager of Consulting
Business Division 4
January 2022
Director, Executive Officer, and General
Manager of BusinessSuccession Fund Services (current
position)
March 2022
Aoyama Zaisan Investments Co., Ltd.
Representative Director (current
position)

March 2018
December 2019
April 2020
October 2020
January 2021
June 2022

Joined The Mitsui Bank, Limited (current:
Sumitomo Mitsui Banking Corporation)
Joined Yamazaki Certified Tax Accountant Office
Joined Tohmatsu & Co.
(current: Deloitte Touche Tohmatsu LLC)
Registered as a CPA
Appointed as outside Audit & Supervisory Board
Member of the Company (current position)
Audit & Supervisory Board Member of Nihon
Shisan Soken Co., Ltd. (current position)
Business Succession Navigator Corporation(currently Next Navi), Audit & Supervisory Board
Member (current position)
Audit & Supervisory Board Member of Aoyama
Zaisan Networks Kyushu Co., Ltd. (current
position)
Audit & Supervisory Board Member of Nitto
Fudosan Co., Ltd. (current position)
Audit & Supervisory Board Member of Aoyama
Financial Service Co., Ltd. (current position)
Aoyama Family Office Service Co., Ltd
Audit & Supervisory Board Member (current
position)
Nihon Digital Investment Co., Ltd.
Audit & Supervisory Board Member (current
position)

Audit & Supervisory Board Member
Independent

Joined The Tokai Bank, Limited (current:
MUFG Bank, Ltd.)
General Manager of Fujisawa Branch
General Manager of Chofu Branch
General Manager of Takenotsuka Branch
Joined the Company
Director, General Manager of Consulting
Department
August 2002
Director, General Manager of Administrative
Department
March 2005
Funai Estate Co., Ltd.
(former: Aoyama Estate Co., Ltd.) Audit &Supervisory Board Member
April 2006
Managing Director of the Company
September 2008 Audit & Supervisory Board Member of
Proggest Co., Ltd.
October 2010
Director of Aoyama Estate Co., Ltd.
October 2013
Audit & Supervisory Board Member of Nihon
Shisan Soken Co., Ltd.
March 2014
Director of Nihon Shisan Soken Co., Ltd.
March 2015
Advisor of the Company
March 2016
Audit & Supervisory Board Member (current
position)

Audit & Supervisory Board

April 1970

April 1997

April 1994
January 1996
January 1999
November 2001
March 2002

April 1997
June 2002

Independent

Registered as Attorney (Dai-Ichi Tokyo Bar
Association)
Joined Hori & Partners
Joined Barack Ferrazzano Kirschbaum &Nagelberg LLP (Chicago)
March 2007
Joined Tokyo Aoyama, Aoki, Koma Baker &McKenzie Law Office
April 2007
Lecturer of Advanced Institute of Industrial
Technology (current position)
June 2008
Representative Attorney of Ogasawara
Konno & Rokugawa
March 2009
Outside Audit & Supervisory Board Memberof the Company (current position)
April 2013
Professor of Graduate School of Law, Tokai
University
December 2016 Tsunagu Group Holdings, Inc.
Outside Director (current position)
September 2017 Outside Auditor of OKWAVE Inc. (current
position)
September 2020 Outside Director and Audit & Supervisory
Board Member of Abalance Corporation(current position)
April 2021
Outside Auditor of Yumeshin Holdings Co.,
Ltd. (current position)
April 2022
Representative Attorney of Tokyo
Uchisaiwaicho Law Firm (current position)
June 2022
Outside Director of Meiji Machine Co., Ltd.
(current position)

Aoyama Zaisan Networks ｜ Integrated Report 2023

21

Our Sustainability Corporate Governance⚫ Compensation for officers

Basic concept of corporate governanceTotal amount per type of compensation (thousand yen)

Based on our corporate policy of always making
proposals from the client’s standpoint with a fair and neutral
attitude, AZN firmly believes it is essential to establish
corporate governance to ensure compliance-oriented
management and to practice this policy. The Company’s
Board of Directors and Audit & Supervisory Board
acknowledge that the corporate governance framework
should primarily perform the following functions.

⚫ To protect and encourage the exercise of shareholders’ rights.
⚫ To ensure equal treatment of all shareholders.
⚫ To make timely and accurate disclosure regarding all
the important matters related to the company, including
its financial conditions, operating results, shareholder
composition, and governance.
⚫ To ensure the strategic orientation of the company, effective
supervision of management executives, and clear accountability

Corporate Governance System

Total amount ofcompensation(thousand yen)

Basiccompensation

Bonus

Restricted stockcompensation

Other

Director(except outside Director)

210

96

78

24

11

36

7

Audit & Supervisory Board
Member(excluding Outside Audit &Supervisory Board Members)

5

4

0

－

－

－

1

Outside Officer

43

37

6

－

－

－

5

Category of officer

Performance-linked

Of the following, Number of eligible
officers
non-monetary(persons)
compensation,etc.

Evaluation of the effectiveness of Board of Directors
department. Moreover, to strengthen the supervisory
function of the Board of Directors, the Company
has established the Compensation Council and theNominating Committee, at least two of whose members
must be Outside Directors.

The Company ensures the effectiveness of audits of
Directors' performance of their duties by maintaining theindependence of its Auditors and Audit & Supervisory
Board Members from the Board of Directors, and bycollaborating with auditing firms and its in-house auditing(1) Board of Directors

The Board of Directors deliberates and makes decisions on important matters concerning the Company’s management, and oversees theCompany's business and general management. Each of the two Outside Auditors has an advanced level of expertise, and they provide reliable
management oversight from their professional perspectives.

(2) Executive Officers

In light of the segregation of management and implementation, AZN has instituted an Executive Officer system. Executive Officers execute theoperations of the divisions or departments under their control, in accordance with organizational regulations and rules on the segregation of duties
set forth by the Board of Directors.

(3) Executive
Committee

The Executive Committee, consisting of the President, full-time Directors, and Executive Officers, meets on a weekly basis to verify management
policies and discuss management strategies and business execution for the purpose of sharing problem awareness and having smoothcommunication among all members.

(4) Compensation
CouncilRemuneration for directors, within the total scope of remuneration approved by the General Meeting of Shareholders, is determined by theCompensation Council, which is composed of Directors selected by resolution of the Board of Directors. The Compensation Council is composedof three or more Directors, at least two of whom must be outside Directors as a rule for the purpose of raising the transparency and objectivityof the review process.

(5) Nominating
Committee

The Nominating Committee, a voluntary advisory body to the Board of Directors, deliberates on the selection and dismissal of senior management
and Directors and recommends candidates to the Board of Directors, which are decided by the Board of Directors. Also, the Nominating
Committee is composed of three or more Directors, at least two of whom must be outside Directors as a rule for the purpose of raising thetransparency and objectivity of the review process.

(6) Compliance
Committee

The Compliance Committee, consisting of the President, full-time Directors, Executive Officers/General Managers of the divisions, and external
legal counsels (attorneys), has been established in conjunction with the Board of Directors as a forum for deliberation on risk management andlegal compliance by the Company.

(7) Sustainability
Committee

The Sustainability Committee, consisting of the President and full-time Directors, was established to build a foundation for sustainable growth,
to oversee and monitor sustainability policies, strategies, and measures, and to manage and evaluate the progress of objectives resolved by the
Board of Directors.

General Meeting of Shareholders

AZN strives constantly to improve the effectivenessof its Board of Directors. AZN undertakes an annual
questionnaire survey of all Directors and Audit &Supervisory Board Members regarding the effectivenessof the Board of Directors, using the evaluation points listed
at right. The results are then discussed and reported to
the Board of Directors. See right for a summary of last
fiscal year's survey results.
Conduct a questionnaire

Collect responses from all
the Directors and Audit &Supervisory Board Members

Questionnaire evaluation items

Summary of questionnaire results⚫Composition of the Board of
Directors and Executive Officers⚫Operation of the Board of Directors⚫Agendas of meetings of theBoard of Directors⚫Supervisory framework by the
Board of Directors⚫Supervisory framework byshareholder

About the Board of Directors of theCompany, there were no importantmatters raised in each evaluation
item, whereas some findings about
the Board of Directors operations
were noted. We intend to make some
improvements, aiming to realize a more
effective Board of Directors.

Have discussions basedon questionnaire results

Report discussion results
to the Board of Directors

Risk management
Based on its Crisis Management Regulations, AZN
defines external crises, internal crises, disasters, andother crises as described at the right, and defines how to
respond to crises when they occur. In the event of a crisis
that seriously threatens corporate operations, a task force
is immediately formed and company-wide action is taken
to resolve the problem.

❶E xternal risks● Information leak❶
❷ Problems involved in business operations (including●
customer consulting services)❸ Civil violent incidents, contact/problems with anti-social forces●❹ Criminal acts by employees (fraud etc.)●❺ Other risks/incidents associated with AZN’s credit●❷ Internal risks●T❶ raffic accidents by employees (property/personal damage)❷ Internal troubles (sexual harassment etc.)❸M ishaps of employees and their families, other work accidents❹ Other cases constituting a crime by employees❸D isasters etc.

❶ Extraordinary disasters including natural disasters●

Legal Counsel

Audit & Supervisory Board

Nominating Committee
Compensation Council
Compliance Committee

Board of Directors
Audit Firm

Sustainability Committee
Executive Committee

President
Departments / Affiliates

Internal Audit OfficeCompensation for officers
AZN's Board of Directors has adopted a policy for
determining the details of compensation for individual
Directors.
Compensation for individual Directors for the fiscal year
in question is determined by the Compensation Council,
which is composed of 3 or more Directors (at least 2 of22

Aoyama Zaisan Networks ｜ Integrated Report 2023

whom must be Outside Directors) selected by the resolutionof the Board of Directors to increase the transparency andobjectivity of the review process. Its methods of determining
the details of compensation and the compensation sodetermined shall be consistent with the decision-making
policy resolved by the Board of Directors.

Information security management
For the purpose of continually maintaining andstrengthening our information security management
structure including personal information management,
we have obtained the International Organization forStandardization (ISO) 27001 international accreditationand information security management system certification.
We have developed and maintain systems based on thisstandard, and continue to further strengthen our systems
for managing confidential information.

Compliance initiatives
For the purpose of practicing fair and bona fide
management in compliance with laws, a Compliance
Committee consisting of the President, full-time Directors,
Executive Officers/General Managers of the divisions, andoutside legal counsels (attorneys) has been established. The
Compliance Committee performs the following operations:❶ To recognize potential risk of losing trust from the securities market andclients in business operations, and prepare countermeasures (draft)❷ To review if there is any compliance issue with specified joint real estate
venture operations, and give approval of their execution❸ To review and report preventive measures against serious compliance violations❹ To examine/check suspicious compliance activities (potential complianceviolations)

Aoyama Zaisan Networks ｜ Integrated Report 2023

23

Our Sustainability Message from Outside Directors
Creating an organization where harmony among diverse
personalities generates vital energy

Amid strong performance, now is the time to implement
measures looking to the future

Needs for management and succession of property in Japan are on the rise. It is becoming increasingly importantfor consultants to be able to analyze diverse customer situations and make optimal proposals. For this reason, theGroup focuses on training consultants and creating pleasant workplaces.

In 2022, the Groupʼs property consulting and real estate-related businesses grew, and ROIC management became
established. As a result, the company achieved its best ever performance. Toward further future growth, we arestrengthening our efforts in human resource development, DX, and reform of work styles.

As Japan's population ages, there is a growing needfor asset utilization and management due to uncertainty
about society’s future. Japan also has many familybusinesses with long histories, and highly specialized
consulting services related to asset management andbusiness succession are in high demand among thecommunity. We help to ensure the business continuityof family-owned businesses that play a major role in
the local community. Socially, this is very meaningful.
Our Group has been providing consulting services while
prioritizing our relationships with clients passing on assets
and businesses. It is important to sustain these kinds ofrelationships over the long term.
To further enhance the quality of the Group's
management, it needs to consider three perspectives:

Outside Director

Haruo Shimada

24

Aoyama Zaisan Networks ｜ Integrated Report 2023

investors, clients, and society. Needless to say, ourreputation among investors and clients is of paramountimportance. In recent years, society's view of thecompany has also grown in significance. Pursuing an
optimal balance among these three perspectives is sureto improve quality of management.
Amid an ever-changing external environment, ourclients' family structures and asset situations are becoming
more diverse. As a consulting company, our Group iscommitted to understanding and analyzing each client's
situation in order to make optimal recommendations. To
carefully carry out a series of processes, it is essential tohave consultants who have a deep love for people as wellas true sensitivity. This is why we need to focus more thanever on recruiting and training human resources. Beyond
improving the skills of individual consultants, it is alsoessential to take a team approach to complement eachother.
In the future, it will be more important to improve thequality of services through the use of digital technology.
In recent years, we have been making a dedicatedcommitment to DX. The cornerstone of these efforts is theART system. We will continue to evolve the ART systemand devote efforts to increasing the uptake of the system
by users.
But how can consultants and other employees in various
divisions be highly motivated to work? This question
is key to the future growth of our business. The Groupestablished a Sustainability Committee in 2022, and partof the Committee’s responsibility involves reforming theway we work. We intend to be a company that promotes
understanding of diversity, creating workplaces where
everyone can work in comfort, where all employees canfeel fulfilled in their daily work and always want to give
their best.
Creating an organization in which diverse personalities
can coexist in harmony and create vital energy is anextremely challenging task for all Japanese companies.
We will redouble our efforts to be recognized as a pioneerin overcoming this significant challenge.

Ever since Spring 2020, the Group's core property
consulting business has been severely constrained by the
prolonged COVID-19 pandemic. Despite a challenging
environment in which meeting with clients was not easy,
AZN as a whole managed to achieve record sales andprofits in 2022. I believe this is the result of the efforts ofour consultants and other front-line employees.
In 2022, we steadily increased the number of clientsand sales in our property consulting business, while
Advantage Club, one of our strategic individualized
services, achieved significant growth. With an increasing
number of similar products from other companies now
following suit, we need to further enhance the appeal ofAdvantage Club without taking our high market share for
granted. Moreover, after the USA, Japan has the second-

Outside Director

Keiji Watanabe

largest number of financial asset holders owning morethan 100 million yen in financial assets. Great business
opportunities are evident in the IFA and STO businesses
that we have established.
Return on invested capital (ROIC)-based management,
which we have been working on since 2021, has also
taken firm root in 2022 after a year of experience. Useof ROIC has driven activities for improvement in every
division, leading to increased productivity. ROIC andreturn on equity (ROE) for 2022 were 12.2% and 22.0%,
respectively—well above the levels of typical Japanesecompanies. This is the result of effective use of funds
entrusted to us by investors.
Even though our current performance is solid, we needto undertake initiatives with an eye to future changes in theenvironment. Companies with management philosophiesand purposes such as ours are necessary for society, andI would like to point out three key points for growth.
The first key point is human resource development. In
particular, it is very important to train many consultants able
to think from the client’s perspective, build relationships oftrust, and make recommendations that satisfy clients.
The second key point is DX initiatives. Digital technology
is a powerful tool in proposing optimal solutions to clientswith diverse needs. Digitalization is also an essential factor
in improving the performance of consultants. Significant
tools in our Group include the ART system, but we need
to focus more on training people to use it to its fullest
potential. In the future, we will also need to consider how
to incorporate technologies such as AI and big data. I
believe that eventually, we will consider establishing neworganizations such as a research and development center.
The third key point is even further development of work
style reforms. In the summer of 2022, we conducted aninternal survey that clearly identified several issues for ourGroup. It is very important to create a workplace that is
pleasant and rewarding to work in not only for women
but also for men. We moved several measures into
implementation for immediate improvement.
As a Group, we will work together to ensure that all
employees find their work rewarding, are able to overcome
challenges, and have ample opportunity to grow further.

Aoyama Zaisan Networks ｜ Integrated Report 2023

25

Our Sustainability Sustainable management
Message from the Sustainability Committee

Three areas of materiality and initiatives of the Group
Committee manages and evaluates the progress of targets
set by the Board of Directors, while at the same timeoverseeing and monitoring sustainability policies, strategies,
and actions. Its members are made up of the President andManaging Executive Officers of the Company.
The Sustainability Committee has five subcommittees
including Promotion of TCFD, Instilling Management
Philosophy and Strengthening Human Resources,
Creating A Rewarding Workplace, Social Contribution, andStrengthening Governance. It is responsible for proposing
and promoting specific activities for improvement, basedon various themes and perspectives. The members ofeach subcommittee are selected by the Executive Director
from among personnel at related departments. Each
subcommittee sets goals and plans for achieving thesegoals, and undertakes activities through a process of
repeated discussion and verification.

AZN aims to address ESG issues by realizing thestrategies outlined in its Third Medium-Term Management
Plan, which commenced in 2022. As a comprehensive
property consulting company that supports the enduring
development of our clients' valuable assets and businesses,
we are committed to realizing our management objectiveof "Contributing to the happiness of our clients through thesuccession, operation, and management of property" byproviding environmentally friendly products and services toresolve property-related concerns, as well as our efforts to
reduce environmental impact in response to climate change.
As an advocate of 100-year property consulting,
AZN needs to build on the foundation of human resource
development, the source of our consulting services, toensure its own sustainable growth. Led by the Sustainability
Committee, we are committed to company-wide efforts
to realize a more sustainable society. The Sustainability

E
Environment

Realizing adecarbonized,
recycling-basedsocietyS⚫ System for promoting sustainability
Board of Directors

SocialSustainability Committee

Promoting TCFD

Instilling management philosophy
and strengthening human resources

Creating a company
worth working forContributing to society

Stronger governance

SDGs

Quality of interpersonal skills

Quality of work styles

Quality of social contribution

Quality of protection

Realizing a societythat supports (thesuccess of) diverse
talents

A process of identifying materiality
resource development and corporate governance. In
identifying materialities, we identify social issues likely toexert significant impact on our company and on society,based on the steps shown in the diagram below.

In 2020, the Group identified as high-priority issues
both project-related materialities such as reducing
the environmental impact of buildings, and business
infrastructure-related materialities such as human

Step 1

26

Step 2

Step 3

Identify social
challenges

Hold hearings
internally/externally andevaluate importanceAnalyze global social challenges/

Organize social challenges in terms

ESG trends and identify a wideof importance for external parties

range of environmental/social/economic issues(stakeholders) including ESG
investors and impact on AZNAoyama Zaisan Networks ｜ Integrated Report 2023

Internal
discussions &approvals

Business activities
with emphasis on
partnerships

Step 4
Identify materiality

Relevance to
the SDGs

2022–2023 Initiatives

G

Discuss and identify (finalize)
important challenges along two

Governancespectrums: importance for theGroup and importance for our
stakeholders

Continuing
improvement ingovernanceWe recognize that addressing climate change is an important management issue that affects business
continuity. In particular, we view CO2 emissions from real estate-related business activities as a major risk
impacting climate change. To this end, we prioritize environmentally friendly initiatives for their ability tocontribute to enhancing asset value and resolving social issues.

Current initiatives⚫Switching to environmentally friendly facilities andclean energy-based electricity for Advantage Club⚫Endorsement and disclosure of therecommendations of the Task Force on Climaterelated Financial Disclosures (TCFD)

Future initiatives⚫Promoting water conservation and waste
reduction in conjunction with Advantage Clubtenants⚫Promoting the use of environmentallyfriendly materials, paints, equipment,
etc. by incorporating ESG perspectives
into our analysis of current situations
and recommendations for land use andconstruction support⚫Promoting buildings and urban developmentthat are considerate of water environment
conservation⚫Reducing waste and greenhouse gas
emissions

In addition to reinforcing employees’ own efforts to improve their interpersonal skills throughsocial contribution, the Group is committed to promoting diversity and establishing a pleasantwork environment for women and other diverse human resources, which is crucial to accepting
the diverse values of customers and resolving property issues.

Current initiatives⚫Instilling our management philosophy throughmorning meetings and corporate philosophy
training conducted by President Hasumi himself⚫Enhancing consultant training programs such as
ART system training and the Consulting Education
Center⚫Promoting the use of parental leave⚫Expanding the contract employee system toallow employees to continue working after the
mandatory retirement age of 65⚫Donating a portion of profits to organizations
dedicated to eradicating pet euthanasia, promoting
subsidized meals for children, etc., and offering
support through volunteer activities by employees⚫Strengthening management training through theuse of external educational institutions⚫Implementing a health management declarationand 100% health checkup rate

Future initiatives⚫Expanding support for organizations dedicatedto eradicating pet euthanasia, promoting
subsidized meals for children, etc.
⚫Promoting advancement of women (increasing
the percentage of female employees
from approximately 30% to 40%, andthe percentage of female managers fromapproximately 19% to 30%)
⚫Maintaining the work environment⚫Enhance consultant training by using external
educational institutions⚫Training up management personnel⚫Further health management, including
promoting opportunities to exercise andoffering dietary guidance⚫Implementing volunteer activities for clean-ups
in the Minato City area

We regard local communities as a foundation for the life of all people including our clients, their families,
and the companies and employees they value, as well as a foundation for social and economic activities
and for leading happy lives. To ensure that our customers can live happily and that the value of their assets
in local communities continues to increase, we are committed to engaging with local communities.

Current initiatives⚫Not only contributing to welfare through land utilization for childcare facilities, seniors facilities, hospitals,
clinics, and other facilities of high public benefit, but also contributing to the revitalization of local
communities through real estate utilization, such as attracting commercial facilities.
⚫Creating mechanisms to give back to society by supporting the establishment of foundations⚫Contributing to urban development and regional job creation by collaborating with partners such as
public organizations, financial institutions, and companies on regional development projects
The Group recognizes corporate governance as an important management mechanism to maketransparent, fair, rapid, and decisive decisions. Director candidates are determined by the Nominating
Committee, executive compensation is deliberated upon by the Compensation Council, and theeffectiveness of the Board of Directors is evaluated. We have also established the Compliance Committee
consisting of the President, full-time Directors, Executive Officers/General Managers of the divisions, andexternal legal counsels (attorneys) as a structure to further compliance with laws and corporate ethics.

Current initiatives⚫Establishing appropriate managerial structures for the Group by instituting a Nominating Committee andCompensation Council to determine director candidates, as well as succession planning, etc.
⚫Operating the Compliance Committee and a fair and transparent Compensation Council to advancelegal compliance

Aoyama Zaisan Networks ｜ Integrated Report 2023

27

Our Sustainability Sustainable management
Approach to human resources strategy and investment in human capitalIn our Group, human assets (capital), from which ourconsulting services stem, is an extremely important formof management capital. By improving the interpersonal
skills of our employees and their capabilities to provide
high-quality services, as well as increasing the diversityof our employees, we can respond to the diverse values
and requests of our clients and offer further value-added
property consulting services. Investing in human capitalmeans investing in our business base and its foundationof sustainable management, which is essential for
the Group's ongoing sustainable growth. We monitor
operating profit per employee as an overall measure of
return on investment in human capital. We seek to improve
operating profit per employee by making progress invarious measures related to human capital.

⚫Operating profit per employee (consolidated)(million yen)

9.07

9
8

6.91

7

7.17

6.79

6

5.28

5
4
3

Endorsement of TCFD

Indicators and targets

The Group has declared its support for therecommendations of the Task Force on Climate-related
Financial Disclosures (TCFD). The Group is engaged inbusiness activities utilizing energies from land and othernatural resources, and we recognize that addressing
climate change is an important management challengewith a considerable impact on our business continuity. We
prioritize environmentally friendly initiatives for their ability
to contribute to enhancing asset value and resolving social
issues, and we aim to meet the needs of both clients andtenants.

The total CO2 emissions of our Group have been
increasing due to the expansion of our business andincreases in the number of employees. However, byintroducing energy-saving equipment and changing power
contracts to a carbon-free plan, we have been reducing
CO2 emissions per square meter (CO2 emission intensity).
Our CO2 emission reduction targets for 2030 and 2050
are currently under consideration. We will continue toaddress climate change risks by extending and expanding
measures to curb emissions through ongoing TCFD
disclosures.

2⚫Changes in CO2 emissions [tCO2]

1
0

2018

2019

2020

2021

Scope 1 1＆2
&2
Scope

2022

Scope 33「ADVANTAGE
Emissions related to
Advantage
Club
Scope
CLUB」
に関わる排出量
Scope 33Other
emissionsScope
その他による排出量

GovernanceAchieving sustainable growth for the Aoyama Zaisan Networks Group

Initiatives
・Creating a pleasant working
environment for all・Ratio of female employees: 30% /Target 40% (consolidated)・Ratio of female managers: 19% / Target
30% (consolidated)
・Promoting use of parental leave by
male employees
Initiatives
・Philosophy training(Hasumi Juku)・Partial donation of
profits
・Volunteer activities

Diversity

Improvinginterpersonal
skills

Initiatives
・Property consultant training
・Training of management personnel
・Education and training DX

Enhancingand expanding
wealth, body,and mind

Increase inoperating profit per
employee

Education

HiringInvestment in human capital

Initiatives
・System of equal pay for men and women・Annual review of the evaluation system
・Implementing base increase (2% in 2023)
・Health checkup rate: 100%(consolidated)・Utilization rate of paid leave: 63% (nonconsolidated)

Risk
management

Initiatives
・Managing working
hours and workers'
compensation
・Health management
・Establishing aharassment line・Performing stresschecks

Initiatives
・Reducing mismatches
・Attracting outstanding human resources
・Increasing numbers of applications
・Improving the hiring rate

The Group's Board of Directors deliberates and decides
on policies and important issues related to the overall
issue of addressing climate change.

2
CO22 emissions
intensity
[tCO
2/m ]
CO
排出量原単位
[tCO
2/㎡]

CO2
CO2
emissions 7,000
排出量[tCO2][tCO2]

Strategy

4,000

We conduct analysis of risks and opportunities in thevalue chain in the real estate industry (small-lot real estate
products), taking into account business characteristics
and the surrounding environment, including political,
economic, and social conditions, and we conduct
scenario analysis of the impact of each risk on business.

3,000

排出量原単位[tCO2/㎡]

1,456

1,480

0.08

1,666
0.0775

0.075

2,000

3,952

4,265

4,121
0.07

1,000

0

The Sustainability Committee oversees climate changerisks and opportunities from a medium- to long-term
perspective for the entire Group, and performs supervisionand monitoring in cooperation with the Board of Directors,
with the results reflected in management strategy.

CO2 emissions

CO2
0.085 intensity[tCO2/m2]

0.0836

6,000

5,000

Risk management

0.0846

87

101

101

2020
2020年

2021
2021年

2022
2022年

0.065

⚫ Total CO2 emissions ratio (2022)
Scope 1 & 2: 101 tCO2

2%

Emissions related to
Advantage Club:
4,121 tCO2

70%

Total emissions

5,888 tCO2

Scope 3: 5,787 tCO2

98%

28

Aoyama Zaisan Networks ｜ Integrated Report 2023

Aoyama Zaisan Networks ｜ Integrated Report 2023

29

Our Data

Financial & Non-financial Data (Summary)Financial highlights

Non-financial highlights⚫ Net sales⚫Operating profit /Ratio of operating profit(million yen)

35,952⚫ Shifts in number of consultants
2,629 （%）(million yen)

10

2,500

35,0008.5

30,00020,00017,227

19,061

6.8
1,603

1,500

19,118

8
7.3

Women

170

150

100

15,000

1,000

4

500

2

10,000

18.8%
Total
290
people

6

1,303

0
2018
2019
2020
2021
2022
December December December December December⚫ Equity ratio

Men⚫ Number of clients

(yen)
40.6

39.8

70

40.8

36.5

70.00

69.82

2,000

1,752

50

30

20

1,823

Women

1,000

0

8,000

8,709

100
7,908

7,977

7,760

6,273

5,759

8,794

8,682

8,599

8,487

7,965

6,000

90
6,140

6,139

6,111

80

5,000
4,000

70

3,000

500

10
2018
2019
2020
2021
2022
December December December December December

9,000

Total
54 people

20

10

（％）
9,286

7,000

33.01

30

(full-time employees only, excluding directors, contract employees,

10,00018 people

1,905

1,500

40

⚫ Average salary and employees on leave)(thousand yen)
2,377

2,500
2,076

60

81.2%

⚫ Number of new recruits (new graduatesand mid-career) in FY2022(people)

61.22

38.0
50.94

0

2018
2019
2020
2021
2022
December December December December DecemberMen

201 people

0

2018
2019
2020
2021
2022
December December December December December⚫ Earnings per share (EPS)

（%）
40

0

25%

50

5,000
0

⚫ Proportion of male employees
taking childcare leave

148

1,856

1,464

⚫ Percentage of managers(by gender)
Women

89 people

183
167

7.7

24,213

203

200

8.4

2,000

25,000(people)⚫ Number of employees (by gender)

2,000

60

1,000
2018
2019
2020
2021
2022
December December December December December

0

0

Men

2018
2019
2020
2021
2022
December December December December December

36 people

On September 1, 2021, the Company conducted a 2-for-1
stock split of its common stock. Pre-2020 amounts
and percentages have been replaced by amounts andpercentages that take into account this split.

2018

All employees

2019

Men

2020

2021

0

2022

Women

Wage ratio (female wages, with male wages set at 100)

Financial indicators
Units

December 2010

December 2011

December 2012

December 2013

December 2014

December 2015

December 2016

December 2017

December 2018

December 2019

December 2020

December 2021

December 2022

Net sales

Million yen

5,227

7,627

5,839

6,369

9,305

14,275

14,42014,562

17,227

19,061

19,11824,21335,952

Operating profit

Million yen

200

186

98

160

445

485

751

1,094

1,464

1,603

1,303

1,856

2,629

Ordinary profit

Million yen

160

166

91

142

467

471

628

943

1,358

1,503

1,195

1,796

2,499

Net income attributable to parent company shareholders Million yen

82

218

92

201

362

518

587

768

1,162

1,676

800

1,481

1,694

12,587

12,353

15,492

16,001

17,426

21,757
8,320⚫Financial data

Total assets

Million yen

4,498

3,698

4,769

4,698

5,930

7,220

9,258

Net assets

Million yen

1,222

1,224

1,941

2,151

2,447

2,909

3,329

3,624

4,518

6,390

6,566

7,128

Cash flow from operating activities

Million yen

1,890

579

227

368

197

801

1,177

−1,277

272

2,300

1,942

2,389

2,219

Cash flow from investment activities

Million yen

282

122

−1,203

1,886

43

−162

−1,061

-840

332

723

−753

−631

−1,256

Cash flow from financial activities

Million yen−1,745

−602

247

−425

253

370

1,116

2,174

−1,787

1,215

−215

−374

882

EPS (earnings per share)

yen

3.90

10.32

4.36

9.26

15.49

22.11

24.88

33.37

50.94

70.00

33.01

61.22

69.82

BPS (book value per share)

yen

57.83

57.92

59.74

91.59

103.63122.72139.86158.41

197.59259.48262.39294.61

340.13

Dividend per share

yen

2.50

3.25

3.75

5.00

7.50

9.00

11.50

15.00

19.50

25.00

26.50

28.00

35.0

ROA (return on assets)

％

2.9

4.1

2.2

3.0

8.8

7.2

7.6

8.6

10.9

10.8

7.6

10.7

12.8

ROE (return on equity)

％

6.8

17.8

7.4

11.8

15.9

19.5

18.9

22.2

28.6

31.1

12.7

22.0

22.0

ROIC (return on invested capital)

％

2.2

6.9

3.4

4.4

10.1

11.4

11.9

11.5

13.4

13.0

8.0

10.0

12.2

Equity ratio

％

27.2

33.1

26.5

45.7

40.9

40.0

35.8

28.7

36.5

40.6

39.8

40.8

38.0

*The Company conducted a 100-for-1 stock split of its common stock on January 1, 2014, and a 2-for-1 stock split of its common stock on September 1, 2021. Pre-2020 amounts and percentages
have been replaced by amounts and percentages that take into account this split.

30

Aoyama Zaisan Networks ｜ Integrated Report 2023

Aoyama Zaisan Networks ｜ Integrated Report 2023

31

Corporate Data (as of December 31, 2022)
Corporate
ProfileName of Company

Aoyama Zaisan Networks Company, Limited
3F Aoyama Tower Place,Head Office8-4-14 Akasaka, Minato-ku,
Tokyo 107-0052
Phone: +81-3-6439-5800

Incorporated

September 17, 1991

Capital stock

1,210.99 million yen
Property consulting

Business line

Business succession consulting
Real estate solutions consulting

Number of employees (Group)

290 (across group companies)
Nihon Shisan Souken Co., Ltd.
Aoyama Estate Co., Ltd.

Consolidated subsidiaries

Aoyama Financial Service Co., Ltd.
Aoyama Family Office Service Co., Ltd.
Aoyama Zaisan Networks Kyushu Co., Ltd.
Aoyama Zaisan Investments Co., Ltd., and 5 other companies

Executives

President

Masazumi Hasumi

Director, Managing Executive Officer

Masayuki Yagi

Director, Managing Executive Officer

Takeshi Matsuura

Director, Managing Executive Officer

Takaomi Ogawa

Director, Managing Executive Officer

Shintaro Hashiba

Director, Executive Officer

Shinji Shimane

Director

Michihiro Nagasaka

Outside Director

Haruo Shimada

Outside Director

Keiji Watanabe

Outside Audit & Supervisory Board Member (standing)

Hiroyuki Fujita

Audit & Supervisory Board Member

Hisao Nakatsuka

Outside Audit & Supervisory Board Member

Hiroaki Rokugawa

Stock
Overview

Number of shares in issue

24,520,859 shares

Number of shareholders

6,208

Major
Shareholders

Name(as of March 31, 2023)(Top 10)

No. of shares held

Ratio (%) *Masazumi Hasumi

2,500,718

10.29

Nihon M&A Center Inc.

1,000,000

4.11

NOMURA PB NOMINEES LIMITED OMNIBUS-MARGIN（CASHPB）

797,600

3.28

The Master Trust Bank of Japan, Ltd. (trust account)

737,100

3.03

Custody Bank of Japan, Ltd. (trust account)

731,900

3.01

GOLDMAN SACHS INTERNATIONAL

703,600

2.89

Yasuo Takano

643,600

2.64

Custody Bank of Japan, Ltd. (pension trust account)

490,300

2.01

HIBIKI PATH AOBA FUND

438,180

1.80

MSIP CLIENT SECURITIES

404,200

1.66*Ratio of shares held to total number of shares issued (excluding treasury stock) (%)

For more information or inquiries about this report,
please contact:
Aoyama Zaisan Networks Company, Limited
Corporate Planning Division
Phone: +81-3-6439-5824
URL: https://www.azn.co.jp/contactus/
2304123