Aoyama Zaisan : Summary of Consolidated Financial Results for the Year Ended December 31, 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 Year Ended December 31, 2021
		(Based on Japanese GAAP)
					February 8, 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,Deputy Executive Officer,
Inquiries:	General Manager for Management	Masayuki Yagi	TEL [phone]
	Headquarters
Scheduled date of ordinary general meeting of shareholders:	March 30, 2022
Scheduled date to file Securities Report:	March 30, 2022
Scheduled date to commence dividend payments:	March 31, 2022
Preparation of supplementary material on financial results:	Yes
Holding of financial results meeting:	Yes	(for analysts)

(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended December 31, 2021 (from January 1, 2021 to December 31, 2021)

(1) Consolidated operating results												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		%
Year ended December 31, 2021	24,213		26.6	1,856		42.4		1,796	50.2		1,481		85.0
Year ended December 31, 2020	19,118		0.3	1,303		(18.7)		1,195	(20.5)			800		(52.2)
	Earnings per share		Diluted earnings per	Profit attributable to		Ordinary profit/total	Operating profit/net
			share			owners of				assets			sales
							parent/equity
		Yen			Yen			%						%				%
Year ended December 31, 2021		61.22		60.91				22.0						10.7				7.7
Year ended December 31, 2020		33.01		32.83				12.7						7.6				6.8
(2) Consolidated financial position
	Total assets			Net assets		Equity ratio	Net assets per share
	Millions of yen	Millions of yen					%						Yen
As of December 31, 2021		17,426					7,128					40.8						294.61
As of December 31, 2020		16,001					6,566					39.8						262.39
(3) Consolidated cash flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities		at end of period
	Millions of yen	Millions of yen		Millions of yen		Millions of yen
Year ended December 31, 2021				2,389					(631)					(374)						10,862
Year ended December 31, 2020				1,942					(753)					(215)						9,424
2. Cash dividends
					Annual dividends per share					Total cash		Dividend payout	Ratio of dividends
															to net assets
	1st quarter-end	2nd quarter-end	3rd quarter-end	Fiscal year-end	Total			dividends (Total)	ratio (Consolidated)	(Consolidated)
	Yen				Yen	Yen		Yen	Yen	Millions of yen		%			%
Year ended December 31, 2020	-			20.00	-		33.00	53.00		643		80.3			10.2
Year ended December 31, 2021	-			22.00	-		17.00			-		675		45.7			10.1
Year ending December 31, 2022	-			13.00	-				18.00	31.00				44.3
(Forecast)
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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	70.00
4. Notes
(1) Changes in significant subsidiaries during the year ended December 31, 2021			No
(changes in specified subsidiaries resulting in the change in scope of consolidation):
(2) 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

(3) Number of issued shares (common shares)

Total number of issued shares at the end of the period (including treasury shares)

	As of December 31, 2021	24,362,800	shares	As of December 31, 2020	24,284,800	shares
Number of treasury shares at the end of the period
	As of December 31, 2021	220,248	shares	As of December 31, 2020	248	shares
Average number of shares during the period
	Year ended December 31, 2021	24,196,881	shares	Year ended December 31, 2020	24,261,806	shares

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Consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2020	As of December 31, 2021
Assets
Current assets
Cash and deposits	9,428,038	10,865,779
Accounts receivable - trade	521,733	567,076
Real estate for sale	319,452	118,675
Other inventories	891	5,303
Income taxes receivable	40,281	25,475
Other	330,410	483,733
Allowance for doubtful accounts	(944)	(3,078)
Total current assets	10,639,863	12,062,965
Non-current assets
Property, plant and equipment
Buildings and structures	2,699,550	2,700,160
Accumulated depreciation	(216,336)	(330,887)
Buildings and structures, net	2,483,214	2,369,272
Land	195,666	195,666
Other	284,744	298,134
Accumulated depreciation	(150,773)	(181,579)
Other, net	133,971	116,554
Total property, plant and equipment	2,812,852	2,681,493
Intangible assets
Goodwill	37,158	28,240
Software	610,386	495,872
Other	29,440	27,277
Total intangible assets	676,985	551,389
Investments and other assets
Investment securities	1,154,492	1,587,037
Shares of subsidiaries and associates	32,472	34,864
Deferred tax assets	296,599	122,658
Other	388,644	386,557
Total investments and other assets	1,872,208	2,131,118
Total non-current assets	5,362,046	5,364,001
Total assets	16,001,910	17,426,966

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			(Thousands of yen)
		As of December 31, 2020	As of December 31, 2021
Liabilities
Current liabilities
Accounts payable - trade	139,105	189,040
Short-term borrowings	100,000	200,000
Current portion of long-term borrowings	1,021,295	1,298,150
Current portion of bonds payable	434,000	232,000
Income taxes payable	39,575	204,215
Accounts payable - other	932,376	986,484
Asset retirement obligations	26,452	-
Other	672,111	736,446
Total current liabilities	3,364,915	3,846,336
Non-current liabilities
Bonds payable	412,000	180,000
Long-term borrowings	4,203,597	4,679,227
Long-term leasehold and guarantee deposits received	1,397,871	1,528,577
Long-term accounts payable - other	57,281	57,781
Other	-	6,897
Total non-current liabilities	6,070,750	6,452,483
Total liabilities	9,435,666	10,298,820
Net assets
Shareholders' equity
Share capital	1,153,520	1,167,601
Capital surplus	1,314,999	1,330,819
Retained earnings	3,810,271	4,625,458
Treasury shares	(201)	(167,951)
Total shareholders' equity	6,278,591	6,955,928
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	166,988	181,653
Foreign currency translation adjustment	(73,612)	(24,930)
Total accumulated other comprehensive income	93,375	156,722
Share acquisition rights	193,620	11,439
Non-controlling interests	656	4,055
Total net assets	6,566,243	7,128,146
Total liabilities and net assets	16,001,910	17,426,966

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Consolidated statements of income and consolidated statements of comprehensive income Consolidated statements of income

			(Thousands of yen)
		Fiscal year ended	Fiscal year ended
		December 31, 2020	December 31, 2021
Net sales	19,118,353	24,213,197
Cost of sales	15,491,365	19,882,635
Gross profit	3,626,987	4,330,562
Selling, general and administrative expenses	2,323,603	2,474,400
Operating profit	1,303,384	1,856,162
Non-operating income
Interest income	611	456
Dividend income	2,371	5,782
Share of profit of entities accounted for using equity method	4,726	2,392
Foreign exchange gains	-	44,179
Other	3,467	4,417
Total non-operating income	11,177	57,227
Non-operating expenses
Interest expenses	64,117	73,978
Guarantee commission	5,583	2,993
Commission expenses	15,531	30,231
Foreign exchange losses	33,172	-
Other	352	9,724
Total non-operating expenses	118,757	116,927
Ordinary profit	1,195,803	1,796,462
Extraordinary income
Gain on sale of investment securities	-	34,001
Gain on reversal of share acquisition rights	-	190,353
Total extraordinary income	-	224,354
Extraordinary losses
Loss on valuation of golf club membership	11,949	-
Loss on retirement of non-current assets	37,277	335
Impairment losses	47,007	9,822
Total extraordinary losses	96,234	10,158
Profit before income taxes	1,099,568	2,010,658
Income taxes - current	259,213	366,728
Income taxes - deferred	44,789	167,468
Total income taxes	304,003	534,197
Profit	795,565	1,476,460
Loss attributable to non-controlling interests	(5,343)	(4,862)
Profit attributable to owners of parent	800,909	1,481,322

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