Aoyama Zaisan : Summary of Consolidated Financial Results for the Three Months Ended March 31, 2023 (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 Three Months Ended March 31, 2023 (Based on Japanese GAAP)

		May 11, 2023
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:			Shintaro Hashiba	TEL [phone]
Corporate Finance Division
Scheduled date to file Quarterly Securities Report:			May 11, 2023
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 three months ended March 31, 2023 (from January 1, 2023 to March 31, 2023)
(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	%
Three months ended March 31, 2023		7,318	(42.1)	467		(30.8)	466		(25.7)	291	(36.4)
Three months ended March 31, 2022		12,651	274.7	675		139.4	627		126.7	458	(3.3)
		Earnings per share		Diluted earnings per share
			Yen			Yen
Three months ended March 31, 2023			12.00				11.99
Three months ended March 31, 2022			18.96				18.90
(2) Consolidated financial position
		Total assets		Net assets		Equity ratio		Net assets per share
		Millions of yen		Millions of yen				%		Yen
As of March 31, 2023			21,785				8,092				36.9		330.44
As of December 31, 2022			21,757				8,320				38.0		340.13

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, 2022	-	13.00	-	22.00	35.00
Year ending December 31, 2023	-
Year ending December 31, 2023 (Forecast)		15.00	-	23.00	38.00

3. Forecast of consolidated financial results for the year ending December 31, 2023 (from January 1, 2023 to December 31, 2023)

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	39,500	9.9	3,300	25.5	3,050	22.0	1,980	16.8	81.48

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4. Notes

(1) Changes in significant subsidiaries during the three months ended March 31, 2023

	(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 March 31, 2023	24,520,859	shares	As of December 31, 2022	24,520,859	shares
Number of treasury shares at the end of the period
	As of March 31, 2023	220,328	shares	As of December 31, 2022	220,328	shares
Average number of shares during the period (cumulative from the beginning of the fiscal year)
	Three months ended March 31, 2023	24,300,531	shares	Three months ended March 31, 2022	24,183,903	shares

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Quarterly consolidated financial statements

Consolidated balance sheets

			(Millions of yen)
		As of December 31, 2022	As of March 31, 2023
Assets
Current assets
Cash and deposits	12,804	11,380
Accounts receivable - trade	684	373
Real estate for sale	1,751	3,146
Other inventories	15	15
Other	160	692
Allowance for doubtful accounts	(0)	(6)
Total current assets	15,416	15,601
Non-current assets
Property, plant and equipment
Buildings and structures, net	2,324	2,294
Land	195	195
Other, net	110	103
Total property, plant and equipment	2,630	2,593
Intangible assets
Goodwill	19	17
Software	365	336
Other	25	24
Total intangible assets	410	378
Investments and other assets
Investment securities	2,727	2,702
Shares of subsidiaries and associates	37	38
Deferred tax assets	160	98
Other	375	372
Total investments and other assets	3,300	3,212
Total non-current assets	6,341	6,184
Total assets	21,757	21,785

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			(Millions of yen)
		As of December 31, 2022	As of March 31, 2023
Liabilities
Current liabilities
Accounts payable - trade	291	234
Short-term borrowings	-	1,440
Current portion of long-term borrowings	1,950	1,997
Current portion of bonds payable	150	120
Income taxes payable	687	118
Accounts payable - other	1,128	564
Provision for bonuses	-	265
Other	935	740
Total current liabilities	5,142	5,481
Non-current liabilities
Bonds payable	30	-
Long-term borrowings	6,003	5,846
Long-term leasehold and guarantee deposits received	2,180	2,287
Long-term accounts payable - other	54	52
Other	26	25
Total non-current liabilities	8,295	8,211
Total liabilities	13,437	13,693
Net assets
Shareholders' equity
Share capital	1,210	1,210
Capital surplus	1,374	1,374
Retained earnings	5,593	5,350
Treasury shares	(168)	(168)
Total shareholders' equity	8,010	7,767
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	206	213
Foreign currency translation adjustment	47	48
Total accumulated other comprehensive income	254	262
Share acquisition rights	30	34
Non-controlling interests	24	28
Total net assets	8,320	8,092
Total liabilities and net assets	21,757	21,785

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

Consolidated statements of income (cumulative)

			(Millions of yen)
		Three months ended	Three months ended
		March 31, 2022	March 31, 2023
Net sales	12,651	7,318
Cost of sales	11,195	6,126
Gross profit	1,455	1,192
Selling, general and administrative expenses	780	724
Operating profit	675	467
Non-operating income
Foreign exchange gains	27	18
Other	4	5
Total non-operating income	32	23
Non-operating expenses
Interest expenses	16	18
Commission expenses	55	5
Other	7	0
Total non-operating expenses	79	24
Ordinary profit	627	466
Extraordinary income
Gain on reversal of share acquisition rights	0	-
Total extraordinary income	0	-
Profit before income taxes	628	466
Income taxes - current	117	112
Income taxes - deferred	51	59
Total income taxes	169	171
Profit	458	295
Profit attributable to non-controlling interests	0	3
Profit attributable to owners of parent	458	291

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