Aoyama Zaisan : First Half Business Summary for Fiscal Year 2017 (27th period) January 1 to June 30, 2017

Securities Code: 8929

First Half Business Summary for Fiscal Year 2017 (27th period)

January 1 to June 30, 2017

Message from President Highlights of Consolidated Business Results

Property management needs of asset owners are increasing, and consultations based on referrals from financial institutions are rising sharply

Corporate consulting for business owners and capital policy-related cases and funds are growing considerably

Revenue from new approaches such as investment business and shipping operating leases is increasing

Aoyama Zaisan Networks Provides

the Most Comprehensive Asset Management Solutions

In the current economic climate, management remains challenging due to the impact of negative interest rates, and trends of increased inheritance taxes for wealthy people and increased income taxes continue. Moreover, many

Operating revenue (unit: million yen)

Operating income (unit: million yen)

Proft attributable to

companies are struggling with business succession due to factors such as a lack of successors. Against the backdrop of significant changes in the social environment, interests in inheritance strategies and property management

14,800

(forecast)

820

owners of parent

(unit: million yen)

have increased more than ever.

Everyone at our company will put our effort to contribute to the happiness of our customers while also ensuring sustainable growth in profits and

14,275

14,420

(forecast) 680

(forecast)

701 538

751

587

518

reinforcing shareholder returns. We believe this will further enhance our corporate value.

We ask for our shareholders' continuing support and cooperation.

5,263

6,912

7,000

485

188

424

166

310

President Masazumi Hasumi

Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017

Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017

Fiscal Year 2015 Fiscal Year 2016 Fiscal Year 2017

(25th period)

(26th period)

(27th period)

(25th period)

(26th period)

(27th period)

(25th period)

(26th period)

(27th period)

About Aoyama Zaisan Networks

We are a one-of-a-kind comprehensive property

* The above forecasts are based on the information available as of the preparation of this document, involving some uncertainty. Actual business results might prove different from these forecasts, depending on the changes in business conditions.

Aoyama Zaisan Networks in Numbers

consulting firm providing services for property and business successions.

Based on our belief that "financial assets are the foundation for leading a happy life," we provide comprehensive property consulting, including services to support succession, management and administration of personal properties, business succession consulting for company owners, and solutions for effective use of real estate, which represents a large share of personal properties. Our team of expert, independent professionals works

Dividend payout ratio

47.4%

ROE (return on equity)

18.9%

Number of qualified personnel

80

* This refers to the number of working personnel who hold national qualifications such as certified tax accountants and

to resolve property-related issues for the benefit of customers.

Year-end forecast for fiscal year 2017 As of end of December 2016

certified public accountants.

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Topics

First local revitalization project moving forward Formation of ADVANTAGE CLUB Kanda Yasukuni-dori Voluntary Partnership

The Company's first local revitalization project utilizing a special venture defined in the Real Estate Specified Joint Enterprise Act is on track for completion by the end of October 2017. This is a project to build a mixed-use facility that will help drive urban development centered on JR Komatsu Station in Ishikawa Prefecture. The name of the building has now been finalized as "Komatsu A x Z Square."

The building will house an accommodation facility (Hotel Granbinario) aimed at business travelers staying for extended periods and the increased number of people visiting nearby facilities, a play area for families (Kabukky Land), Komatsu University which is scheduled to open in spring 2018, a book cafe, and a language school. The need for redevelopment projects targeting the area near train stations and urban redevelopment projects is rising, particularly in regional cities. Going forward, we will pursue local revitalization projects that utilize special ventures in various locations across Japan in order to contribute to regional economic development as part of the provision of management products to customers.

In March 2017, the Company formed the ADVANTAGE CLUB Kanda Yasukuni-dori Voluntary Partnership as a new product in ADVANTAGE CLUB, a real estate joint ownership scheme based on the Real Estate Specified Joint Enterprise Act.

Name	ADVANTAGE CLUB Kanda Yasukuni-dori
Partnership type	Voluntary partnership contract based on the Real Estate Specified Joint Enterprise Act
Chairperson	Aoyama Zaisan Networks Company, Limited
Partnership name	Kanda Yasukuni-dori Voluntary Partnership
Property overview	Arcadia Building Address: 1-12-3, Kanda-Sudacho, Chiyoda-ku, Tokyo Size: Steel structure with flat roof, 9 floors, total floor area of 1,848.78 m2 Usage: Office/retail
Gross rate of return for first fiscal year	Approx. 6.07% (assuming full occupancy)

During the 15 years since it was launched in 2002, a total of 40 locations of the scheme were opened (of which 17 have been liquidated), with 32.25 billion yen in assets under management and a total of 1,584 participants in the scheme (as of June 30, 2017). This program is steadily expanding.

Establishment of shipping operating leases Decision to invest in a largest-scale urban redevelopment project in Indonesia

In April 2017, the Company established operating lease products for which the target asset is ships (product tankers) and the application process has been completed. In order to further expand our product mix, we concluded a current account overdraft agreement with the Chugoku Bank in July. Through the funding framework provided by this agreement, our aim is to expand our new product line-up based on this scheme and increase revenue in the future.

We have decided to invest in Indonesia's largest-scale urban redevelopment project, which is being undertaken by Lippo Group, a major local industrial conglomerate, in the eastern part of the nation's capital, Jakarta. Indonesia is experiencing rapid growth, and as a first step we are investing in part of the Orange County joint development being pursued by Lippo Group and Mitsubishi Corporation. The project, occupying a total area of over 5,000 ha (equivalent to a thousand Tokyo Domes), will include housing, offices, cultural and educational facilities, and more.

3 4

Network

55 bases within Japan plus a growing global network

List of Nationwide Network (as of August 1,2017)

We have established a nationwide network in Japan that includes leading tax accounting firms and accounting offices. Through this network, we provide consulting services to customers across Japan. As part of our efforts to expand internationally, we have established overseas subsidiaries in the United States and Singapore. Going forward, we will continue working with top overseas partners and enhance our network both at home and abroad.

Nationwide Network (as of August 1, 2017)

Hokkaido, Tohoku

Aoyama Zaisan Networks Sendai Support (MISAWA BUSINESS MANAGEMENT INC.) Zaisan Networks Fukushima Co., Ltd. (Aoki Accounting Corporation) Aoyama Zaisan Networks Hokkaido Support (IKEWAKI TAX, ACCOUNTING & CONSULTANTS GROUP) Aoyama Zaisan Networks Aomori Support (Konda Accounting Office) Aoyama Zaisan Networks Yamagata Support (Yutaka Licensed Tax Accountant's Corp)

Mitsunari Accountant Office

MISAWA BUSINESS MANAGEMENT INC

Aoki Accounting Corporation Inc.

Kanto, Koshinetsu

Nihon Shisan Souken Co., Ltd. (tax accountant office) Zaisan Networks Tochigi Co., Ltd. (Tajima Accounting Office)

Kei Yo Research Institute Zeimu Sogo Tax Corporation

Nihon Mirai Accounting & Tax Co.

Nakamura Certified Public Tax Accountants Office CREAS Corporate Advisers Co.,Ltd.

eclatConsulting

Top Accounting Firm & co Ai Partners Tax Corporation Oyama accounting Co.,Ltd

Masatoshi Yoshikawa Certified Tax Accountant Office Koyama Sadao tax accountingoffice

Tokai, Hokuriku

Kinki

Zaisan Networks Kyoto Co., Ltd. (SHINKEIEI SERVICE SHIMIZU Tax Co.) Zaisan Networks Osaka Co., Ltd. (Nihon Keiei Tax Corporation) Zaisan Networks Hyogo Co., Ltd. (Nihon Keiei Tax Corporation) Seki Soken Zaisan Partners Co., Ltd (AZ TAX Tax Corporation) Aoyama Zaisan Networks Wakayama Support (Nishioka Accounting Office) Aoyama Zaisan Networks Kyoto Nijo Support (HIROSE LICENSED TAX ACCOUNTANT) Aoyama Zaisan Networks Mie Support (Midland Management Group Mie)

Shibata Business Consulting Co., Ltd.

UedaCertified Public Accountant Licensed Tax Accountant Office. CREAS Corporate Advisers Co., Ltd.

Chugoku, Shikoku

Japan

55bases

(Duplicate bases are excluded.)

Tokai and Hokuriku 9bases

Chugoku and Shikoku 4bases

Hokkaido and Tohoku 6bases Kanto and Koshinetsu 22bases

Zaisan Networks Motegi Co., Ltd. (MOTEGI tax consultant office) Aoyama Zaisan Networks Saitama Co., Ltd. (CWM Research Institute) Zaisan Networks Kawasaki Co., Ltd. (Tokyo Japan Certified Tax Accountants' Corporation) Zaisan Networks Nagano Co., Ltd. (Mochizuki Tax Corporation) Aoyama Zaisan Networks Ibaraki Support (Masuyama Accounting Office) Aoyama Zaisan Networks Kanto Chuo Support (MMG Tax Corporation) Aoyama Zaisan Networks Denenchofu Support (Saito Tax Corporation) Aoyama Zaisan Networks Yokohama Support (YAMADA SYNTHETIC OFFICE)

Kujirai Tax Corporation

Zaisan Consultants Kanazawa Co., Ltd. (Hatake & Starship Tax Corporation) Zaisan Networks Shizuoka Co., Ltd. (Iwasaki Tax Corporation) Zaisan Networks Nagoya Support (Meinan Consulting Network) Aoyama Zaisan Networks Fukui Support (Uesaka Consulting Firm)

ARIASU ZEIRISIHOUJIN.

Midori Management System, Co., Ltd. Meito Asset Consulting, Co.,Ltd.

MMPC Consultants Corporation KIMURA KEIEI BRAIN CO.,LTD.

Zaisan Consultants Tokushima Co., Ltd. (M.A.S. AGENT GROUP)

Midori Zaisan Consultants Co., Ltd. (Midori Tax Corporation) Aoyama Zaisan Networks Shimane Support (Chikashige Tax Office) Nonaka Keiei Corporation

Kyushu, Okinawa

Zaisan Networks Fukuoka Co., Ltd. (SHINOHARA CPA OFFICE) Zaisan Networks Okinawa Co., Ltd. (PS Accounting Office) Aoyama Zaisan Networks Nagasaki Support (Chuo Sogo Accounting Office) Aoyama Zaisan Networks Saga Support (MOROI Accounting Firm)

IDEA Research Institute Consulting Co., Ltd.

Kyushu and Okinawa 5bases

Kinki 9bases

Aoyama Zaisan Networks' Nationwide Network NSSTPS Business Model Association * NSSTPS is the abbreviation for Nippon Shisan Soken Total Planning System.

Expanding network to Asia and North America

Hong Kong investment consulting partner

Property

Aoyama Zaisan Networks USA, Inc. (United States)

Corporate Data (as of June 30, 2017)

Executives (from August 1, 2017)

Aoyama Wealth Management Pte. Ltd. (Singapore)

Major Indonesian

industrial conglomerate

PT. Aoyama Zaisan Networks Indonesia (Indonesia)

management partner Real estate partner

Name of Company	Aoyama Zaisan Networks Company, Limited
Head Office	3F Aoyama Tower Place, 8-4-14 Akasaka, Minato-ku, Tokyo 107-0052 Tel. [phone]
Incorporated	September 17, 1991
Capital stock	1,088.93 million yen
Business line	Individual property consulting, business succession consulting and real estate solutions consulting
Number of employees (Group)	182 (as of June 30, 2017)
Consolidated subsidiaries	6 companies including Aoyama Estate Co., Ltd., Nihon Shisan Soken Co., Ltd. and Proggest Co., Ltd.

President	Masazumi Hasumi
Director, Managing Executive Officer	Masayuki Yagi
Director, Managing Executive Officer	Takeshi Matsuura
Director, Managing Executive Officer	Yasuo Takano
Director, Executive Officer	Seido Nakatani
Director, Executive Officer	Shinji Shimane
Director, Executive Officer	Takaomi Ogawa
Outside Director	Haruo Shimada
Outside Director	Keiji Watanabe
Outside Director	Michihiro Nagasaka
Standing Outside Auditor	Yoichiro Shimada
Auditor	Hisao Nakatsuka
Outside Auditor	Hiroaki Rokugawa

Overseas partners Overseas subsidiaries

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