Aoyama Zaisan : Summary of Consolidated Financial Results for the Nine Months Ended September 30, 2019 (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, 2019 (Based on Japanese GAAP)

																		November 7, 2019
Company name:	Aoyama Zaisan Networks Co., Ltd.
Stock exchange listing:	Tokyo
Stock code:	8929	URL	http://www.azn.co.jp/
Representative:	President						Masazumi Hasumi
Inquiries:	Officer, Administration Division			Shintaro Hashiba	TEL	03-6439-5800
Scheduled date to file Quarterly Securities Report:			November 7, 2019
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, 2019 (from January 1, 2019 to September 30, 2019)
(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, 2019	10,454		(12.7)	834	18.6			736		19.4		997	107.7
Nine months ended September 30, 2018	11,970		19.8	704	(7.6)			616		(11.4)		480	(26.6)
			Earnings per share		Diluted earnings per share
						Yen				Yen
Nine months ended September 30, 2019			83.62				82.76
Nine months ended September 30, 2018			42.08				41.38
(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, 2019		15,337				5,693					36.6			463.69
As of December 31, 2018		12,353				4,518					36.5			395.17
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, 2018				-		14.00			-					25.00		39.00
Year ending December 31, 2019				-		17.00			-
Year ending December 31, 2019 (Forecast)														33.00		50.00

3. Forecast of consolidated financial results for the year ending December 31, 2019 (from January 1, 2019 to December 31, 2019)

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	20,000	16.1	1,600		9.2	1,500	10.5	1,250		7.5	104.79

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4. Notes
(1)	Changes in significant subsidiaries during the nine months ended September 30, 2019	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, 2019	12,106,600 shares	As of December 31, 2018		11,963,500 shares
	Number of treasury shares at the end of the period
		As of September 30, 2019	78 shares	As of December 31, 2018		550,078 shares
	Average number of shares during the period (cumulative from the beginning of the fiscal year)
		Nine months ended September 30, 2019	11,928,395 shares	Nine months ended September 30, 2018	11,413,433 shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Thousands of yen)
		As of December 31, 2018	As of September 30, 2019
Assets
Current assets
Cash and deposits	4,197,046	5,874,911
Accounts receivable - trade	410,580	562,705
Real estate for sale	4,052,066	5,035,464
Other inventories	3,579	2,265
Consumption taxes receivable	124,798	-
Other	847,847	596,942
Allowance for doubtful accounts	(70,244)	(614)
Total current assets	9,565,674	12,071,674
Non-current assets
Property, plant and equipment
Buildings and structures, net	136,507	145,917
Land	1,406	1,406
Other, net	57,398	87,811
Total property, plant and equipment	195,312	235,134
Intangible assets
Software	152,556	244,257
Other	2,167	2,107
Total intangible assets	154,724	246,364
Investments and other assets
Investment securities	1,927,016	2,210,414
Shares of subsidiaries and associates	107,128	26,342
Deferred tax assets	89,880	232,314
Other	314,137	315,229
Total investments and other assets	2,438,162	2,784,300
Total non-current assets	2,788,199	3,265,800
Total assets		12,353,873	15,337,474

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			(Thousands of yen)
		As of December 31, 2018	As of September 30, 2019
Liabilities
Current liabilities
Accounts payable - trade	85,517	88,837
Short-term loans payable	-	100,000
Current portion of long-term loans payable	947,503	1,173,128
Current portion of bonds	584,000	644,000
Income taxes payable	-	26,124
Accounts payable - other	831,562	286,644
Provision for bonuses	-	469,963
Other	583,648	494,917
Total current liabilities	3,032,231	3,283,614
Non-current liabilities
Bonds payable	1,370,000	1,206,000
Long-term loans payable	2,049,937	3,731,761
Long-term lease and guarantee deposited	1,324,913	1,364,369
Long-term accounts payable - other	58,408	58,408
Total non-current liabilities	4,803,258	6,360,539
Total liabilities	7,835,490	9,644,153
Net assets
Shareholders' equity
Capital stock	1,088,937	1,140,597
Capital surplus	795,016	1,302,076
Retained earnings	2,490,101	2,973,161
Treasury shares	(346,621)	(121)
Total shareholders' equity	4,027,435	5,415,713
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	513,252	250,071
Foreign currency translation adjustment	(30,401)	(52,089)
Total accumulated other comprehensive income	482,850	197,982
Share acquisition rights	8,097	79,625
Total net assets	4,518,382	5,693,320
Total liabilities and net assets		12,353,873	15,337,474

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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, 2018	September 30, 2019
Net sales	11,970,772	10,454,212
Cost of sales	9,635,472	7,846,221
Gross profit	2,335,299	2,607,991
Selling, general and administrative expenses	1,631,073	1,773,064
Operating profit	704,225	834,927
Non-operating income
Interest income	12,000	1,344
Dividend income	9,031	9,106
Insurance premiums refunded cancellation	7,654	-
Share of profit of entities accounted for using equity method	-	162
Other	3,084	8,259
Total non-operating income	31,770	18,873
Non-operating expenses
Interest expenses	45,754	39,745
Commission fee	27,592	45,355
Bond issuance cost	6,287	3,527
Foreign exchange losses	25,203	6,457
Other	14,540	22,501
Total non-operating expenses	119,377	117,586
Ordinary profit	616,618	736,214
Extraordinary income
Gain on sales of investment securities	-	379,472
Total extraordinary income	-	379,472
Profit before income taxes	616,618	1,115,686
Income taxes - current	153,802	144,512
Income taxes - deferred	(17,412)	(26,282)
Total income taxes	136,390	118,229
Profit	480,228	997,456
Profit attributable to owners of parent		480,228	997,456

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Consolidated statements of comprehensive income (cumulative)

		(Thousands of yen)
	Nine months ended	Nine months ended
	September 30, 2018	September 30, 2019
Profit	480,228	997,456
Other comprehensive income
Valuation difference on available-for-sale securities	275,748	(263,180)
Foreign currency translation adjustment	3,030	(21,687)
Total other comprehensive income	278,778	(284,868)
Comprehensive income	759,007	712,588
Comprehensive income attributable to
Comprehensive income attributable to owners of parent	759,007	712,588

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