Aoyama Zaisan : Summary of Consolidated Financial Results for the Nine Months Ended September 30, 2021 (Based on Japanese GAAP)

Translation

Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results for the Nine Months Ended September 30, 2021 (Based on Japanese GAAP)

																			November 9, 2021
Company name:	Aoyama Zaisan Networks Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	8929	URL	https://www.azn.co.jp/
Representative:	President						Masazumi Hasumi
Inquiries:	CFO						Shintaro Hashiba	TEL	03-6439-5800
Scheduled date to file Quarterly Securities Report:			November 9, 2021
Scheduled date to commence dividend payments:			-
Preparation of supplementary material on quarterly financial results:		Yes
Holding of quarterly financial results meeting:			No
											(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the nine months ended September 30, 2021 (from January 1, 2021 to September 30, 2021)
(1) Consolidated operating results (cumulative)								Percentages indicate year-on-year changes
			Net sales			Operating profit	Ordinary profit		Profit attributable to
							owners of parent
			Millions of yen		%		Millions of yen		%	Millions of yen		%	Millions of yen	%
Nine months ended September 30, 2021	17,958		58.9		1,402		90.6	1,361		111.6			1,177	235.5
Nine months ended September 30, 2020	11,304		8.1		736		(11.8)			643		(12.6)			350	(64.8)
			Earnings per share			Diluted earnings per share
						Yen				Yen
Nine months ended September 30, 2021			48.62					48.39
Nine months ended September 30, 2020			14.47					14.39
(2) Consolidated financial position
			Total assets				Net assets		Equity ratio			Net assets per share
			Millions of yen			Millions of yen					%				Yen
As of September 30, 2021		16,535						6,815					41.1				281.89
As of December 31, 2020		16,001						6,566					39.8				262.39
2. Cash dividends
								Annual dividends per share
			1st quarter-end	2nd quarter-end		3rd quarter-end		Fiscal year-end	Total
			Yen				Yen			Yen				Yen		Yen
Year ended December 31, 2020			-		20.00				-				33.00		53.00
Year ending December 31, 2021			-		22.00				-
Year ending December 31, 2021 (Forecast)														17.00		-

3. Forecast of consolidated financial results for the year ending December 31, 2021 (from January 1, 2021 to December 31, 2021)

Percentages indicate year-on-year changes

	Net sales		Operating profit	Ordinary profit	Profit attributable to	Earnings per share
		owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Full year	21,000	9.8	1,630	25.1	1,530	27.9	1,280	59.8	53.04

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4. Notes
(1)	Changes in significant subsidiaries during the nine months ended September 30, 2021	No
	(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2)	Application of special accounting methods for preparing quarterly consolidated financial statements:	No
(3)	Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
	Changes in accounting policies due to revisions to accounting standards and other regulations:	No
	Changes in accounting policies due to other reasons:		No
	Changes in accounting estimates:			No
	Restatement of prior period financial statements:			No
(4)	Number of issued shares (common shares)
	Total number of issued shares at the end of the period (including treasury shares)
		As of September 30, 2021	24,354,800 shares	As of December 31, 2020		24,284,800 shares
	Number of treasury shares at the end of the period
		As of September 30, 2021	220,248 shares	As of December 31, 2020		248 shares
	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Nine months ended September 30, 2021	24,217,257 shares	Nine months ended September 30, 2020	24,254,168 shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2020	As of September 30, 2021
Assets
Current assets
Cash and deposits	9,428,038	8,989,594
Accounts receivable - trade	521,733	426,715
Real estate for sale	319,452	1,075,872
Other inventories	891	1,835
Income taxes receivable	40,281	-
Other	330,410	653,640
Allowance for doubtful accounts	(944)	(4,322)
Total current assets	10,639,863	11,143,334
Non-current assets
Property, plant and equipment
Buildings and structures, net	2,483,214	2,395,939
Land	195,666	195,666
Other, net	133,971	116,550
Total property, plant and equipment	2,812,852	2,708,156
Intangible assets
Goodwill	37,158	30,469
Software	610,386	528,991
Other	29,440	27,816
Total intangible assets	676,985	587,277
Investments and other assets
Investment securities	1,154,492	1,588,112
Shares of subsidiaries and associates	32,472	34,238
Deferred tax assets	296,599	108,690
Other	388,644	365,700
Total investments and other assets	1,872,208	2,096,742
Total non-current assets	5,362,046	5,392,176
Total assets	16,001,910	16,535,511

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			(Thousands of yen)
		As of December 31, 2020	As of September 30, 2021
Liabilities
Current liabilities
Accounts payable - trade	139,105	193,447
Short-term borrowings	100,000	100,000
Current portion of long-term borrowings	1,021,295	1,258,430
Current portion of bonds payable	434,000	312,000
Income taxes payable	39,575	84,248
Accounts payable - other	932,376	334,150
Asset retirement obligations	26,452	-
Provision for bonuses	-	567,703
Other	672,111	406,753
Total current liabilities	3,364,915	3,256,734
Non-current liabilities
Bonds payable	412,000	210,000
Long-term borrowings	4,203,597	4,636,905
Long-term leasehold and guarantee deposits received	1,397,871	1,559,058
Long-term accounts payable - other	57,281	57,281
Total non-current liabilities	6,070,750	6,463,244
Total liabilities	9,435,666	9,719,978
Net assets
Shareholders' equity
Share capital	1,153,520	1,166,155
Capital surplus	1,314,999	1,329,373
Retained earnings	3,810,271	4,321,475
Treasury shares	(201)	(167,951)
Total shareholders' equity	6,278,591	6,649,053
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	166,988	191,614
Foreign currency translation adjustment	(73,612)	(37,493)
Total accumulated other comprehensive income	93,375	154,121
Share acquisition rights	193,620	6,094
Non-controlling interests	656	6,263
Total net assets	6,566,243	6,815,532
Total liabilities and net assets	16,001,910	16,535,511

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Consolidated statements of income (cumulative) and consolidated statements of comprehensive income (cumulative)

Consolidated statements of income (cumulative)

			(Thousands of yen)
		Nine months ended	Nine months ended
		September 30, 2020	September 30, 2021
Net sales	11,304,243	17,958,917
Cost of sales	8,926,748	14,745,114
Gross profit	2,377,495	3,213,803
Selling, general and administrative expenses	1,641,423	1,811,117
Operating profit	736,072	1,402,685
Non-operating income
Interest income	881	360
Dividend income	1,731	5,771
Foreign exchange gains	-	33,418
Share of profit of entities accounted for using equity method	3,289	1,765
Other	2,226	5,203
Total non-operating income	8,128	46,519
Non-operating expenses
Interest expenses	47,853	56,025
Commission expenses	12,700	26,213
Foreign exchange losses	35,517	-
Other	4,651	5,596
Total non-operating expenses	100,722	87,836
Ordinary profit	643,478	1,361,368
Extraordinary income
Gain on sales of investment securities	-	23,097
Gain on reversal of share acquisition rights	-	190,353
Total extraordinary income	-	213,450
Extraordinary losses
Impairment loss	46,967	9,822
Loss on valuation of golf club membership	11,549	-
Total extraordinary losses	58,516	9,822
Profit before income taxes	584,961	1,564,996
Income taxes - current	70,009	213,270
Income taxes - deferred	168,440	177,040
Total income taxes	238,450	390,311
Profit	346,511	1,174,685
Loss attributable to non-controlling interests	(4,372)	(2,653)
Profit attributable to owners of parent	350,883	1,177,338

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