Summary of Consolidated Financial Results for the Year Ended December 31, 2024 (Based on Japanese GAAP)

Summary of Consolidated Financial Results

for the Year Ended December 31, 2024

(Based on Japanese GAAP)

February 13, 2025

Company name:

Aoyama Zaisan Networks Co., Ltd.

Stock exchange listing:

Tokyo

Stock code:

8929

URL https://www.azn.co.jp/

Representative:

President

Masazumi Hasumi

Inquiries:

Corporate Finance Division

Seiichi Ishikawa

TEL 03-6439-5800

Finance Department General Manager

Scheduled date of ordinary general meeting of shareholders:

March 27, 2025

Scheduled date to file Securities Report:

March 27, 2025

Scheduled date to commence dividend payments:

March 28, 2025

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, 2024 (from January 1, 2024 to December 31, 2024)

(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, 2024

45,618

26.4

3,506

7.4

3,480

3.6

2,428

17.8

Year ended December 31, 2023

36,098

0.4

3,265

24.2

3,359

34.4

2,062

21.7

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, 2024

100.03

99.84

25.2

15.2

7.7

Year ended December 31, 2023

84.81

84.74

23.2

14.8

9.0

(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, 2024

22,392

9,816

43.6

408.17

As of December 31, 2023

23,491

9,584

40.4

390.42

(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, 2024

6,662

(2,659)

(5,768)

12,934

Year ended December 31, 2023

2,488

212

(858)

14,693

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, 2023

-

15.00

-

26.00

41.00

997

48.3

11.2

Year ended December 31, 2024

-

18.00

-

28.00

46.00

1,109

46.0

11.5

Year ending December 31, 2025

-

20.00

-

31.00

51.00

49.8

(Forecast)

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

47,000

3.0

3,850

9.8

3,650

4.9

2,450

0.9

102.32

4. Notes

(1) Significant changes in the scope of consolidation during the year ended December 31, 2024:

No

(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

As of December 31, 2024

25,103,459

shares

As of December 31, 2023

24,520,859

shares

Number of treasury shares at the end of the period

As of December 31, 2024

1,159,690

shares

As of December 31, 2023

189,246

shares

Average number of shares during the period

Year ended December 31, 2024

24,280,309

shares

Year ended December 31, 2023

24,320,628

shares

(Millions of yen)

As of December 31, 2023

As of December 31, 2024

Assets

Current assets

Cash and deposits

14,696

13,082

Accounts receivable - trade

910

484

Real estate for sale

1,677

1,192

Other inventories

12

22

Other

290

641

Allowance for doubtful accounts

(9)

(8)

Total current assets

17,578

15,415

Non-current assets

Property, plant and equipment

Buildings and structures

2,743

376

Accumulated depreciation

(538)

(130)

Buildings and structures, net

2,205

245

Land

195

1

Other

292

301

Accumulated depreciation

(199)

(220)

Other, net

93

81

Total property, plant and equipment

2,494

328

Intangible assets

Goodwill

10

2,922

Software

255

171

Other

23

21

Total intangible assets

289

3,115

Investments and other assets

Investment securities

2,514

2,845

Shares of subsidiaries and associates

38

40

Deferred tax assets

178

253

Other

395

394

Total investments and other assets

3,128

3,533

Total non-current assets

5,912

6,977

Total assets

23,491

22,392

(Millions of yen)

As of December 31, 2023

As of December 31, 2024

Liabilities

Current liabilities

Accounts payable - trade

308

378

Short-term borrowings

200

200

Current portion of long-term borrowings

2,160

1,976

Current portion of bonds payable

30

20

Income taxes payable

755

486

Accounts payable - other

1,070

1,411

Other

935

1,232

Total current liabilities

5,460

5,705

Non-current liabilities

Bonds payable

-

70

Long-term borrowings

5,781

3,704

Long-term leasehold and guarantee deposits received

2,595

3,032

Long-term accounts payable - other

45

43

Deferred tax liabilities

-

16

Other

23

3

Total non-current liabilities

8,445

6,870

Total liabilities

13,906

12,575

Net assets

Shareholders' equity

Share capital

1,210

1,259

Capital surplus

1,381

2,081

Retained earnings

6,756

8,113

Treasury shares

(144)

(1,978)

Total shareholders' equity

9,204

9,475

Accumulated other comprehensive income

Valuation difference on available-for-sale securities

333

350

Foreign currency translation adjustment

(38)

(53)

Total accumulated other comprehensive income

294

297

Share acquisition rights

48

28

Non-controlling interests

37

15

Total net assets

9,584

9,816

Total liabilities and net assets

23,491

22,392

(Millions of yen)

Fiscal year ended

Fiscal year ended

December 31, 2023

December 31, 2024

Net sales

36,098

45,618

Cost of sales

29,742

38,649

Gross profit

6,356

6,969

Selling, general and administrative expenses

3,090

3,462

Operating profit

3,265

3,506

Non-operating income

Interest income

10

10

Dividend income

13

15

Share of profit of entities accounted for using equity method

1

1

Foreign exchange gains

150

37

Gain on investments in silent partnerships

20

16

Other

16

3

Total non-operating income

211

84

Non-operating expenses

Interest expenses

77

77

Commission expenses

38

30

Other

2

3

Total non-operating expenses

117

111

Ordinary profit

3,359

3,480

Extraordinary losses

Loss on valuation of investment securities

224

75

Loss on retirement of non-current assets

0

0

Total extraordinary losses

224

75

Profit before income taxes

3,134

3,404

Income taxes - current

1,133

1,060

Income taxes - deferred

(73)

(82)

Total income taxes

1,059

978

Profit

2,075

2,426

Profit (loss) attributable to non-controlling interests

12

(2)

Profit attributable to owners of parent

2,062

2,428

(Millions of yen)

Fiscal year ended

Fiscal year ended

December 31, 2023

December 31, 2024

Profit

2,075

2,426

Other comprehensive income

Valuation difference on available-for-sale securities

127

17

Foreign currency translation adjustment

(86)

(14)

Total other comprehensive income

40

2

Comprehensive income

2,115

2,428

Comprehensive income attributable to

Comprehensive income attributable to owners of parent

2,102

2,431

Comprehensive income attributable to non-controlling

12

(2)

interests

(Millions of yen)

Shareholders' equity

Accumulated other comprehensive

income

Valuation

Total

Share

Non-

difference

Foreign

Total net

Total

accumulated

acquisition

controlling

Share

Capital

Retained

Treasury

on

currency

assets

shareholders'

other

rights

interests

capital

surplus

earnings

shares

available-

translation

equity

comprehensive

for-sale

adjustment

securities

income

Balance at

beginning of

1,210

1,374

5,593

(168)

8,010

206

47

254

30

24

8,320

period

Changes during

period

Dividends of

(899)

(899)

(899)

surplus

Profit

attributable to

2,062

2,062

2,062

owners of

parent

Disposal of

treasury shares

(Restricted

7

23

31

31

share

Remuneration)

Net changes

in items other

than

127

(86)

40

17

12

70

shareholders'

equity

Total changes

-

7

1,162

23

1,194

127

(86)

40

17

12

1,264

during period

Balance at end

1,210

1,381

6,756

(144)

9,204

333

(38)

294

48

37

9,584

of period

(Millions of yen)

Shareholders' equity

Accumulated other comprehensive

income

Valuation

Total

Share

Non-

difference

Foreign

Total net

Total

accumulated

acquisition

controlling

Share

Capital

Retained

Treasury

on

currency

assets

shareholders'

other

rights

interests

capital

surplus

earnings

shares

available-

translation

equity

comprehensive

for-sale

adjustment

securities

income

Balance at

beginning of

1,210

1,381

6,756

(144)

9,204

333

(38)

294

48

37

9,584

period

Changes during

period

Dividends of

(1,071)

(1,071)

(1,071)

surplus

Issuance of

new shares -

exercise of

48

48

97

97

share

acquisition

rights

Issuance of

new shares -

686

686

686

share

exchanges

Profit

attributable to

2,428

2,428

2,428

owners of

parent

Purchase of

treasury

(2,099)

(2,099)

(2,099)

shares

Disposal of

treasury shares

(Restricted

12

18

30

30

share

Remuneration)

Disposal of

treasury

(48)

247

199

199

shares (stock

exchange)

Purchase of

shares of

0

0

0

consolidated

subsidiaries

Net changes

in items other

than

17

(14)

2

(20)

(21)

(39)

shareholders'

equity

Total changes

48

699

1,357

(1,834)

270

17

(14)

2

(20)

(21)

231

during period

Balance at end

1,259

2,081

8,113

(1,978)

9,475

350

(53)

297

28

15

9,816

of period

(Millions of yen)

Fiscal year ended

Fiscal year ended

December 31, 2023

December 31, 2024

Cash flows from operating activities

Profit before income taxes

3,134

3,404

Depreciation

285

215

Amortization of goodwill

8

8

Share-based payment expenses

17

4

Increase (decrease) in allowance for doubtful accounts

8

(1)

Interest and dividend income

(23)

(25)

Interest expenses

77

77

Loss (gain) on valuation of investment securities

224

75

Loss (gain) on investments in silent partnerships

(20)

(16)

Loss on retirement of non-current assets

0

0

Decrease (increase) in trade receivables

(231)

513

Decrease (increase) in inventories

95

3,249

Decrease (increase) in accounts receivable - other

(1)

(4)

Decrease (increase) in advance payments to suppliers

(132)

(280)

Decrease (increase) in advances paid

24

6

Increase (decrease) in trade payables

16

(27)

Increase (decrease) in advances received

(100)

(44)

Increase (decrease) in accounts payable - other

(23)

296

Increase (decrease) in deposits received

(216)

87

Increase (decrease) in long-term accounts payable - other

(8)

(2)

Increase (decrease) in accrued consumption taxes

124

186

Increase (decrease) in leasehold and guarantee deposits

415

437

received

Other, net

(78)

(53)

Subtotal

3,595

8,107

Interest and dividends received

23

25

Interest paid

(67)

(68)

Income taxes refund (paid)

(1,061)

(1,402)

Net cash provided by (used in) operating activities

2,488

6,662

(Millions of yen)

Fiscal year ended

Fiscal year ended

December 31, 2023

December 31, 2024

Cash flows from investing activities

Payments into time deposits

-

(130)

Purchase of property, plant and equipment

(30)

(48)

Purchase of intangible assets

(15)

(17)

Purchase of investment securities

-

(847)

Proceeds from sales and withdrawal of investment securities

290

460

Purchase of golf club membership

(7)

-

Purchase of shares of subsidiaries resulting in change in scope

-

(2,068)

of consolidation

Payments of leasehold and guarantee deposits

(42)

(12)

Proceeds from refund of leasehold deposits

15

5

Other, net

3

0

Net cash provided by (used in) investing activities

212

(2,659)

Cash flows from financing activities

Increase (decrease) in short-term borrowings

200

-

Proceeds from long-term borrowings

2,000

1,500

Repayments of long-term borrowings

(2,012)

(4,120)

Redemption of bonds

(150)

(30)

Proceeds from exercise of employee share options

-

72

Purchase of treasury shares

-

(2,099)

Purchase of shares of subsidiaries not resulting in change in

-

(19)

scope of consolidation

Dividends paid

(896)

(1,071)

Net cash provided by (used in) financing activities

(858)

(5,768)

Effect of exchange rate change on cash and cash equivalents

49

6

Net increase (decrease) in cash and cash equivalents

1,892

(1,759)

Cash and cash equivalents at beginning of period

12,801

14,693

Cash and cash equivalents at end of period

14,693

12,934