Aoyama Zaisan : Summary of Consolidated Financial Results for the Nine Months Ended September 30, 2022 (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, 2022

(Based on Japanese GAAP)

November 11, 2022

Company name:

Aoyama Zaisan Networks Co., Ltd.

Stock exchange listing:

Tokyo

Stock code:

8929

URL

https://www.azn.co.jp/

Representative:

President

Masazumi Hasumi

Director, Managing Executive Officer, and

Inquiries:

General Manager of Corporate Planning

Shintaro Hashiba

TEL

03-6439-5800

Division

Scheduled date to file Quarterly Securities Report:

November 11, 2022

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, 2022 (from January 1, 2022 to September 30, 2022)

(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, 2022

28,033

56.1

1,665

18.7

1,602

17.7

1,064

(9.6)

Nine months ended September 30, 2021

17,958

58.9

1,402

90.6

1,361

111.6

1,177

235.5

Earnings per share

Diluted earnings per share

Yen

Yen

Nine months ended September 30, 2022

43.89

43.84

Nine months ended September 30, 2021

48.62

48.39

(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, 2022

20,671

7,701

37.0

315.05

As of December 31, 2021

17,426

7,128

40.8

294.61

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, 2021

-

22.00

-

17.00

-

Year ending December 31, 2022

-

13.00

-

Year ending December 31, 2022 (Forecast)

22.00

35.00

3. Forecast of consolidated financial results for the year ending December 31, 2022 (from January 1, 2022 to December 31, 2022)

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	36,500	50.7	2,550	37.4	2,420	34.7	1,690	14.1	69.55

1

4. Notes

(1) Changes in significant subsidiaries during the nine months ended September 30, 2022

	(changes in specified subsidiaries resulting in the change in scope of consolidation):	No
(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:	Yes
	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, 2022	24,520,859	shares	As of December 31, 2021	24,362,800	shares
Number of treasury shares at the end of the period
	As of September 30, 2022	220,283	shares	As of December 31, 2021	220,248	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Nine months ended September 30, 2022	24,259,222	shares	Nine months ended September 30, 2021	24,217,257	shares

2

Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of December 31, 2021	As of September 30, 2022
Assets
Current assets
Cash and deposits	10,865	12,708
Accounts receivable - trade	567	671
Real estate for sale	118	1,270
Other inventories	5	3
Income taxes receivable	25	-
Other	483	446
Allowance for doubtful accounts	(3)	(2)
Total current assets	12,062	15,097
Non-current assets
Property, plant and equipment
Buildings and structures, net	2,369	2,359
Land	195	195
Other, net	116	119
Total property, plant and equipment	2,681	2,674
Intangible assets
Goodwill	28	21
Software	495	398
Other	27	25
Total intangible assets	551	445
Investments and other assets
Investment securities	1,587	1,900
Shares of subsidiaries and associates	34	39
Deferred tax assets	122	147
Other	386	367
Total investments and other assets	2,131	2,454
Total non-current assets	5,364	5,574
Total assets	17,426	20,671

3

			(Millions of yen)
		As of December 31, 2021	As of September 30, 2022
Liabilities
Current liabilities
Accounts payable - trade	189	262
Short-term borrowings	200	200
Current portion of long-term borrowings	1,298	1,904
Current portion of bonds payable	232	150
Income taxes payable	204	439
Accounts payable - other	986	616
Provision for bonuses	-	588
Other	736	428
Total current liabilities	3,846	4,590
Non-current liabilities
Bonds payable	180	60
Long-term borrowings	4,679	6,221
Long-term leasehold and guarantee deposits received	1,528	2,029
Long-term accounts payable - other	57	56
Other	6	12
Total non-current liabilities	6,452	8,379
Total liabilities	10,298	12,970
Net assets
Shareholders' equity
Share capital	1,167	1,210
Capital surplus	1,330	1,374
Retained earnings	4,625	4,963
Treasury shares	(167)	(168)
Total shareholders' equity	6,955	7,381
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	181	173
Foreign currency translation adjustment	(24)	101
Total accumulated other comprehensive income	156	274
Share acquisition rights	11	25
Non-controlling interests	4	20
Total net assets	7,128	7,701
Total liabilities and net assets	17,426	20,671

4

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Nine months ended	Nine months ended
		September 30, 2021	September 30, 2022
Net sales	17,958	28,033
Cost of sales	14,745	24,058
Gross profit	3,213	3,975
Selling, general and administrative expenses	1,811	2,309
Operating profit	1,402	1,665
Non-operating income
Foreign exchange gains	33	82
Other	13	12
Total non-operating income	46	94
Non-operating expenses
Interest expenses	56	60
Commission expenses	26	84
Other	5	12
Total non-operating expenses	87	157
Ordinary profit	1,361	1,602
Extraordinary income
Gain on sale of investment securities	23	-
Gain on reversal of share acquisition rights	190	0
Total extraordinary income	213	0
Extraordinary losses
Impairment losses	9	5
Total extraordinary losses	9	5
Profit before income taxes	1,564	1,597
Income taxes - current	213	558
Income taxes - deferred	177	(21)
Total income taxes	390	536
Profit	1,174	1,060
Loss attributable to non-controlling interests	(2)	(4)
Profit attributable to owners of parent	1,177	1,064

5