Financial Results for Q2 Fiscal Year Ending December 2024

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Explanatory Materials for

Financial Results for the Six Months Ended June 30, 2024 Fiscal Year Ending December 31, 2024

Securities Code ：8929

Aoyama Zaisan Networks Co., Ltd.

August 8, 2024

© 2024 Aoyama Zaisan Networks Group

TOPICS Changes in Shareholder Return Policy after 2Q in the Fiscal Year Ending December 31, 2024

• Introduction of Progressive Dividend Policy (Refer to p.20)

• Expansion of Shareholder Benefit Schemes (Refer to p.22)

The ideal way of doing business Aoyama Zaisan Networks is aiming for:

"To be a leading expert on the business for the wealthy"

Financial asset owners

Wealth advisors who provide advice on a holistic view of various assets.

Client partners who can consult more than anyone else and help clients solve their problems.

Contents

1 Financial Results for the Six Months Ended June 30, 2024

• Shareholder Return Policy

3 Appendix

Section 1

Financial Results for the Six Months Ended June 30, 2024

• Highlights of Consolidated Financial Results
• Actual PL ー In Case of Adopting the Net Amount Method
• Breakdown of Changes in Operating Profit
• Changes in Gross profits of Asset Consulting and Real Estate Transactions
• Changes in Net Sales of Asset Consulting
• Net Sales by Segment

• BS Highlights

Highlights of Consolidated Financial Results

・Both asset consulting and real estate transactions steadily increased, and profits at all levels significantly increased.

Unit：Million yen

Five-Year Changes in Consolidated Financial Results

Unit: Million yen

Actual PL - In the Case of Adopting the Net Amount Method

Maintaining actual high level operating profit ratio

For accounting purposes, net sales of real estate transactions such as those of ADVANTAGE CLUB are generally presented as a total amount.

However, our PL based on our actual situation is as shown in the table below, and we are profitable as a consulting firm. We believe that this disclosure of actual conditions will provide useful information for investors.

Unit: Million yen

• Net sales were calculated by netting the net sales related to real estate purchases and sales out of the net sales for accounting purposes (Cost of sales related to real estate purchases are offset against net sales) Cost of sales was calculated by deducting cost of sales related to real estate purchases and personnel costs recorded in cost of sales from the accounting cost of sales.

(Reference) Explanation of the Case for Adopting the Net Actual PL Method Presented on the Previous Page

For accounting purposes, there are two methods of presenting sales of real estate transactions: gross or net. Actual PL is presented when the net method is used, where sales represent the difference between property sales and the cost of property purchases. In addition, our personnel costs are included in both cost of sales and SG&A expenses, but are shown as SG&A expenses in the actual PL to make them easier to understand. As mentioned above, the Company uses the gross amount method in its disclosures, but uses the net amount method for internal administrative purposes.

Unit: Million yen

*The following reclassifications were made from the accounting PL to the actual PL.

・Real estate transaction sales of 17,027 million yen and real estate purchase costs of 15,304 million yen included in cost of sales of 17,650 million yen were offset.

・Personnel costs were included in the cost of sales and selling, general and administrative expenses in the accounting PL. In the actual PL, personnel costs of 1,344 million yen included in the cost of sales were included in selling, general and administrative expenses.

As a result, net sales were deducted from the accounting PL by 15,304 million yen, resulting in the actual PL of 5,690 million yen.

In addition, the cost of sales was deducted from the real estate purchase cost of 15,304 million yen and personnel costs of 1,344 million yen, resulting in the actual PL of 1,001 million yen. Selling, general and administrative expenses added 1,344 million yen in personnel costs included in cost of sales, and amounted to 2,948 million yen in the actual PL.

For operating profit, both the accounting PL and actual PL were the same.

Breakdown of Changes in Operating Profit

• Significant increase in gross profit (excluding personnel costs) due to significant increase in sales of high-margin asset consulting services.