Summary of Financial Statements for the Second Quarter of Fiscal Year Ending April 2022
[Japan GAAP] (Consolidated)

December 3, 2021

Name of listed company:

AIN HOLDINGS INC.

Exchange listed on:First Section of Tokyo Stock Exchange and Sapporo Securities Exchange

Code number:

9627

URL:

https://www.ainj.co.jp/

Representative:
Inquiries:

Kiichi Otani, President and Representative Director
Toshihide Mizushima, Representative Senior Managing Director
TEL: +81-11-814-1000
Date of filing quarterly securities report:
December 15, 2021–

Start of dividend payment:

Yes (Supplementary materials for the quarterly results are disclosed on the

Supplementary documents for quarterly results:

Company’s website appropriately as the financial statements.)

Quarterly results briefing:

Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen.)
1. Consolidated results for the second quarter of fiscal year ending April 30, 2022 (May 1, 2021 to October 31, 2021)(1) Consolidated operating results(Percentage figures show year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Six months ended October 31, 2021
Six months ended October 31, 2020
(Note) Comprehensive income:Million yen%

Million yen%

Million yen%

Million yen%

152,972

5.2

5,776

47.1

6,127

35.6

3,338

26.9

145,352(0.3)
3,927(53.0)
4,517 (48.4)
Six months ended October 31, 2021: ¥3,311 million (+24.3%)
Six months ended October 31, 2020: ¥2,664 million (-42.2%)

2,630(43.1)

Earnings
per share

Diluted earnings
per share
Yen

Yen

Six months ended October 31, 2021

94.68

-

Six months ended October 31, 2020

74.24

-

(2) Consolidated financial position
Total assets

Net assets

Million yen

Shareholders’ equity ratio

As of October 31, 2021

210,442Million yen
115,810

As of April 30, 2021

203,662

115,837(Reference) Shareholders’ equity: As of October 31, 2021: ¥115,741 million

%
55.0
56.8

As of April 30, 2021: ¥115,758 million

2. Dividends

Year ended April 30, 2021

End of firstquarterYen-

End of second
quarter
Yen
0.00

0.00
Year ending April 30, 2022
Year ending April 30, 2022
(forecast)(Note) Revision to the most recently announced dividend forecasts: No

Dividend per share
End of third
quarterYen-

End of year

Full year

Yen

Yen

55.00

55.00

55.00

55.00

3. Consolidated financial forecasts for the fiscal year ending April 30, 2022 (May 1, 2021 to April 30, 2022)(Percentage figures show year-on-year changes.)
Profit attributable toEarnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Million yen%
Million yen%
Million yen%
Million yen%
Yen
Full year

315,000

6.0

15,00037.2

15,500

22.5

8,300

23.9

234.28(Note) Revision to the most recently announced consolidated financial forecasts: No*Notes(1) Major changes in subsidiaries during the period (changes in specified subsidiaries resulting from changes in scope of
consolidation): No
Newly consolidated: –Excluded: –(2) Application of specified accounting methods for the preparation of quarterly consolidated financial statements: Yes(Note) For detail, please refer to “2. Quarterly consolidated financial statements and major notes (4) Notes on quarterly consolidated
financial statements” on page 10 of the Attachment.

(3) Changes in accounting principles, changes in accounting estimates, and restatement of revisions
1) Changes in accounting principles as a result of revisions to accounting standards, etc.:
Yes2) Changes in accounting principles other than 1):
No3) Changes in accounting estimates:
No4) Restatement of revisions:No(4) Number of outstanding shares (common stock)1) Number of outstanding
shares (including treasury
As of October 31, 2021
stock):
2) Number of shares held in
As of October 31, 2021
treasury:
3) Average number ofSix months ended
shares outstanding:
October 31, 2021

35,428,212 shares As of April 30, 2021

35,428,212 shares

200,911 shares As of April 30, 2021

891 shares

Six months ended
October 31, 2020

35,427,442 shares

35,260,638 shares*This Summary of Financial Statements is outside the scope of quarterly review procedures.
*Statement regarding the proper use of financial forecasts and other special remarks(Caution concerning forward-looking statements)
The above forecasts are calculated based on the information available as of the publication date of this material, and actual
financial results may vary due to change in future economic conditions and others.

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2022

Contents of the Attachment
1. Qualitative information on consolidated results for the period under review ..................................................................... 2(1) Consolidated operating results .................................................................................................................................... 2(2) Consolidated financial position .................................................................................................................................... 3(3) Forecast of consolidated financial results and other forward-looking information ........................................................ 3
2. Quarterly consolidated financial statements and major notes ........................................................................................... 4(1) Quarterly consolidated balance sheet.......................................................................................................................... 4(2) Quarterly consolidated statements of income and comprehensive income ................................................................. 6
Quarterly consolidated statements of income................................................................................................................. 6
Quarterly consolidated statements of comprehensive income ....................................................................................... 7(3) Quarterly consolidated statements of cash flows ......................................................................................................... 8(4) Notes on quarterly consolidated financial statements ................................................................................................ 10(Notes on the premise of a going concern)................................................................................................................... 10(Notes on significant changes in the amount of shareholders’ equity) .......................................................................... 10(Application of specified accounting methods for the preparation of quarterly consolidated financial statements)....... 10(Changes in accounting policies).................................................................................................................................. 10(Segment information, etc.) ...........................................................................................................................................11

1

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2022

1. Qualitative information on consolidated results for the period under review(1) Consolidated operating results
During the first six months of the current fiscal year (May 1, 2021 to October 31, 2021), the Japanese economy continued
to face challenging conditions due to the COVID-19 outbreak. Despite signs of a pickup in the economy after the state of
emergency and quasi-emergency measures were lifted throughout Japan at the end of September, the outlook remains
uncertain.
In this economic environment, the Group put priority on ensuring the safety of patients, customers and employees andmade concerted efforts to ensure the continued provision of healthcare and retail services, including vaccinating employees
against COVID-19 through a workplace vaccination program and taking rigorous steps to prevent infection in pharmacies
and stores. Working with local governments, the Japan Pharmaceutical Association and medical institutions, the Group also
dispatched many pharmacists to support the safe and rapid rollout of COVID-19 vaccines in local communities.
In addition, in May 2021, we set fiscal 2026 targets for important issues that should be addressed by the Group (materiality)
and started taking concrete steps towards the targets, including formulating a human rights policy and making preparations
to disclose information in accordance with the recommendations of the Task Force on Climate-related Financial Disclosures(TCFD). Going forward, we will implement various initiatives to realize sustainability management that supports the Group’s
continued growth and creates social, environmental and economic value.
In the first six months of the fiscal year, net sales increased 5.2% year on year to ¥152,972 million, operating profit
increased 47.1% to ¥5,776 million, ordinary profit increased 35.6% to ¥6,127 million, and profit attributable to owners ofparent increased 26.9% to ¥3,338 million.
Financial results by business segment are as follows.
(Dispensing pharmacy business)
The Group is working to leverage the primary care capabilities of its pharmacists and dispensing pharmacies to help
patients access medical services in their local community with peace of mind. Specifically, the Group is reinforcing
pharmaceutical management and guidance and home-based healthcare, backed by integrated and continuous monitoringof patient medication data through cooperation with local medical service providers and the use of patient medication
notebooks and other means.
In addition, as part of revisions to the Pharmaceuticals and Medical Devices Act that came into effect from August 2021,
dispensing pharmacies can now gain certification as community coordination pharmacies or specialist medical institution
coordination pharmacies, depending on their functions. Going forward, the Group will further reinforce home-based
healthcare services, increase coordination with various medical professionals and enhance specialist pharmacist training inorder to contribute to local healthcare provision as a company that meets community pharmacy needs.
In business development, the Group is targeting further business expansion through a strategy of actively opening large
pharmacies and using M&A deals that emphasize investment returns, while also improving pharmacy operating efficiency.
As a result, for the first six months of the fiscal year, the dispensing pharmacy business reported sales of ¥136,905 million,
up 6.9% year on year, and segment profit of ¥10,491 million, up 25.3% due to recovery of prescription volume of existing
dispensing pharmacies and steady growth of dispensing pharmacies opened last fiscal year.
During the first six months of the fiscal year, the Group opened a total of 33 dispensing pharmacies, including thoseacquired through M&A deals, closed four dispensing pharmacies and sold three, resulting in a total of 1,091.
(Cosmetic and drug store business)
The cosmetic and drug store business continued to face a challenging market environment due to the impact of the
COVID-19 pandemic.
The Group continued to create appealing retail displays by strengthening product lineups and worked to improve
convenience and service levels for customers using the official AINZ & TULPE WEBSTORE e-commerce site.
Targeting post-pandemic opportunities, the Group also pushed ahead with store openings in prime locations that are
expected to attract customers.
As a result, for the first six months of the fiscal year, the cosmetic and drug store business reported an increase in salesof 4.6% year on year to ¥9,816 million, and segment loss was ¥1,125 million compared with the loss of ¥1,014 million a year
earlier.
During the same period, the Group opened four AINZ & TULPE cosmetic and drug stores and closed one store, resulting
in a total of 72 cosmetic and drug stores at the end of the second quarter.
(Other businesses)
Net sales from other businesses decreased 21.2% year on year to ¥6,297 million and segment loss was ¥121 million
compared with the loss of ¥435 million a year earlier.
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020),
2

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2022

etc. from the beginning of the first quarter. For more details, please refer to “2. Quarterly consolidated financial statements
and major notes, (4) Notes on quarterly consolidated financial statements, (Changes in accounting policies) and (Segment
information, etc.).
(2) Consolidated financial position
The balance of total assets at the end of the second quarter increased by ¥6,779 million from the end of the previous fiscal
year to ¥210,442 million. That mainly reflected a decline in notes and accounts receivable, outweighed by increases for cashon hand and in banks and for merchandise.
The balance of liabilities increased ¥6,806 million to ¥94,632 million.
The balance of short- term and long-term borrowings decreased by ¥2,054 million to ¥9,912 million.
Total net assets decreased by ¥26 million to ¥115,810 million and the shareholders’ equity ratio decreased 1.8 percentage
points to 55.0%.
(Cash flows)
In the first six months of the fiscal year, cash and cash equivalents (“cash”) increased by ¥3,422 million from the previous
fiscal year end to ¥58,432 million.
Cash flows from each activity and their relevant factors are as follows.
During the first six months of the fiscal year, net cash provided by operating activities was ¥17,314 million, compared with
¥6,441 million provided in the same period a year earlier. The main cash inflows were profit before income taxes of ¥6,064
million, depreciation of ¥2,117 million and amortization of goodwill of ¥2,055 million. The main cash outflow was income
taxes paid of ¥1,907 million.
Net cash used in investing activities amounted to ¥8,261 million, compared with ¥3,759 million used in the same period ayear earlier. The main use of cash was ¥3,590 million for purchases of property, plant and equipment and intangible assets.
Net cash used in financing activities totaled ¥5,630 million, compared with cash provided of ¥5,702 million in the same
period a year earlier. The main uses of cash were a net repayment of ¥2,093 million from short-term and long-term borrowings
repayment and proceeds, ¥1,948 million for cash dividends paid and ¥1,400 million for the purchase of treasury shares.
(3) Forecast of consolidated financial results and other forward-looking information
There are no changes to the Group’s consolidated financial forecasts for the first six months or the fiscal year ending April
30, 2022, which were released on June 4, 2021.

3

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2022

2. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheet

Fiscal year endedApril 30, 2021
(As of April 30, 2021)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise
Supplies
Short-term loans receivable
Accounts receivable - other
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Leasehold and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4(Million yen)Six months ended
October 31, 2021
(As of October 31, 2021)

55,271
13,47514,018
266
144
9,284
3,936
96,39858,692
9,928
16,059253
383
10,7702,473
98,561

16,270
10,3903,568
30,22917,034
10,0304,201
31,26639,057
3,609
42,666

39,133
4,046
43,1802,697
4,415
20,3198,680(1,743)34,368107,264
203,662

2,429
4,629
22,951
9,173(1,749)37,434
111,881
210,442AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2022

Fiscal year endedApril 30, 2021
(As of April 30, 2021)

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Income taxes payable
Deposits received
Provision for bonuses
Provision for bonuses for directors
Provision for point card certificatesContract liabilities
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive loss
Non-controlling interests
Total net assets
Total liabilities and net assets

5(Million yen)Six months ended
October 31, 2021
(As of October 31, 2021)

46,758
3,670
2,157
13,979
2,594
16
461
–
4,522
74,16051,465
3,051
2,917
15,825
3,461
22
–
504
4,709
81,959

8,297
3,329
2,037
13,66487,825

6,860
3,500
2,311
12,672
94,632

21,89420,50073,506(3)
115,899

21,89420,50074,907(1,403)
115,899

(12)
(128)
(141)
78
115,837
203,662

(50)
(107)
(157)
68
115,810
210,442AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2022

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statements of income(Million yen)Six months ended
October 31, 2021
(May 1, 2021 toOctober 31, 2021)

Six months ended
October 31, 2020
(May 1, 2020 to
October 31, 2020)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Commission income
Rental income from real estate
Outsourcing service income
Subsidy income
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sale of receivables
Rental expenses on real estate
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sale of businesses
Gain on sale of shares of subsidiaries and associates
Surrender value of insurance policies
Gain on step acquisitions
Other
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses
Loss on temporary store closures
Loss on cancellation of rental contracts
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

6145,352
123,917
21,43517,508
3,927

152,972
130,133
22,83817,062
5,776

21
26
7
87
89
201

21
21
4
281
73
47

–

2

335
770

208
660

24
38
78
39
180
4,517

22
41
199
46
309
6,127

16
165
111
8
–
14
316

26
5
–
–
131
3
167

146
10
52
–
100
309
4,524
1,913
2,610
(19)
2,630

54
6
–
118
50
230
6,064
2,736
3,328
(10)
3,338

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2022

Quarterly consolidated statements of comprehensive income
Six months ended
October 31, 2020
(May 1, 2020 to
October 31, 2020)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income (loss) attributable tonon-controlling interests

7(Million yen)Six months ended
October 31, 2021
(May 1, 2021 toOctober 31, 2021)

2,610

3,328

29
25
54
2,664
2,684

(37)
20
(16)
3,311
3,321

(19)

(10)

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2022

(3) Quarterly consolidated statements of cash flows

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Impairment losses
Gain on step acquisitions
Increase (decrease) in allowance for doubtful accounts
Increase in provision for point card certificates
Increase (decrease) in contract liabilities
Gain on sale of shares of subsidiaries and associates
Increase in retirement benefit liability
Gain on sale of businesses
Increase in provision for bonuses
Increase in provision for bonuses for directors
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on investments in investment partnerships
Gain on receipt of donated non-current assets
Gain on sales of investment securities
Gain on valuation of investment securities
Gain on sale and retirement of non-current assets
Increase in trade receivables
Decrease (increase) in inventories
Decrease in other assets
Increase in accounts receivable - other
Increase (decrease) in trade payables
Increase (decrease) in other liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities

8(Million yen)Six months ended
October 31, 2021
(May 1, 2021 toOctober 31, 2021)

Six months ended
October 31, 2020
(May 1, 2020 to
October 31, 2020)

4,524
2,024
2,225
10
–
(1)
29
–
(111)
158
(155)
548
3
(48)
24

6,064
2,117
2,055
6
(131)
3
–
65
–
193
(5)
859
6
(43)
22

–

(2)

(4)
(16)
(3)
2
129
1,818
567
837
(992)
(1,668)
(40)
9,859
52
(24)
(3,446)
6,441

(13)
(10)
0
–
27
4,245
(1,707)
1,236(1,316)
3,983
1,544
19,20342(22)(1,907)
17,314

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2022

(Million yen)Six months ended
October 31, 2020
(May 1, 2020 to
October 31, 2020)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Loan advances
Proceeds from collection of loans receivable
Payments for investments in capital
Proceeds from divestments
Purchase of intangible assets
Proceeds from sale of intangible assets
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Decrease (increase) in investments and other assets
Proceeds from withdrawal of time deposits
Payments into time deposits
Other, net
Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Redemption of bonds
Repayments of lease obligations
Purchase of treasury shares
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period

9

Six months ended
October 31, 2021
(May 1, 2021 toOctober 31, 2021)(1,785)
573
(39)
67

(2,663)
626
(105)
184

(257)

(2,223)

(10)
662
(0)
0
(1,189)
4
(930)

(23)
231
(0)
0
(927)
10
(3,104)609

540(1,525)
100
(5)
(34)
(3,759)

(833)
32
(6)
–
(8,261)(3)
11,625(3,841)–(128)(0)(1,948)5,702
8,385
45,931
54,316(2)
0(2,091)(124)(64)(1,400)(1,948)(5,630)3,422
55,00958,432

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2022

(4) Notes on quarterly consolidated financial statements(Notes on the premise of a going concern)
There are no applicable matters to be reported.

(Notes on significant changes in the amount of shareholders’ equity)
The Company is repurchasing 200,000 shares in accordance with a resolution approved by the Board of Directors at a
meeting on June 7, 2021. As a result of the repurchase, the Company’s treasury shares increased by ¥1,400 million during
the second quarter, resulting in a balance of ¥1,403 million at the end of the period.
(Application of specified accounting methods for the preparation of quarterly consolidated financial statements)
To calculate tax expenses, the effective tax rate on profit before income taxes for the consolidated fiscal year after theapplication of tax effect accounting is reasonably estimated and the estimated rate is applied to profit before income taxes
for the quarterly period.
(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020;“Revenue Recognition Standard”), etc. from the beginning of the first quarter of the fiscal year ending April 30, 2022. Under
the new standard, the Company recognizes revenue when promised goods or services are transferred to a customer, withthe amount expected to be received upon exchange of the goods or services recognized as revenue.
The main changes arising from the application of the new accounting standard are as follows. With respect to reward
points provided to customers at the time of sale through the customer loyalty program service, the Company previously
booked the amount equivalent to the number of points expected to be redeemed in the future as allowance for point cards
and allowance for point cards was recorded under selling, general and administrative expenses. Under the new accounting
standard, the Company identifies points awarded as performance obligations and allocates the transaction price based on
the stand-alone selling price calculated by taking into actual redemption rates and other factors. As a result of the change,some sales promotion expenses and other expenses are deducted from sales.
The application of the Revenue Recognition Standard is subject to the transitional treatment provided for in the
supplementary provisions of Paragraph 84 of the Revenue Recognition Standard. If the new accounting policy is appliedprior to the beginning of the first quarter, the cumulative effect of the retroactive application is added to or subtracted fromretained earnings at the beginning of the first quarter and the new accounting policy is applied to balances at the beginningof said period.
As a result, in the second quarter, the application of the accounting standard reduced sales by ¥589 million, reduced
selling, general and administrative expenses by ¥598 million and increased operating profit, ordinary profit and profit before
income taxes each by ¥8 million. In addition, the balance of retained earnings at the start of the fiscal year increased by ¥10
million.
As a result of the application of the Revenue Recognition Standard, “provision for point card certificates” included in“current liabilities” in the consolidated financial statements for the previous fiscal year has been included in “contract liabilities”
from the first quarter of the current fiscal year. In accordance with the transitional treatment stipulated in Article 89-2 of the
Revenue Recognition Standard, figures for the previous fiscal year have not been restated to reflect the new presentation
approach. Furthermore, in accordance with the transitional treatment stipulated in Paragraph 28-15 of the AccountingStandard for Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020), information on the breakdown ofrevenue generated from contracts with customers for the second quarter of the previous fiscal year is not shown.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019;“Fair Value Measurement Standard”), etc. from the beginning of the first quarter. In accordance with the transitional treatment
stipulated in Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the “Accounting Standard for
Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), the Company has decided to apply the new accounting
policies in the Fair Value Measurement Standard going forward. These changes have no impact on the Company’s quarterly
consolidated financial statements.

10

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2022

(Segment information, etc.)
I Six months ended October 31, 2020 (May 1, 2020 to October 31, 2020)
1. Net sales and profit (loss) by reportable segment(Million yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Reportable segments
Adjustments(Note) 1

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses(1) Sales to third parties

128,029

9,388

7,934

145,352-

145,352(2) Intersegment sales

-

-

52

52

(52)

-

128,029

9,388

7,987

145,405(52)

145,352

8,370(1,014)

(435)

6,920

(2,403)

4,517

Total

Sales

Total sales
Segment profit (loss)
Notes:

1. The adjustment of ¥(2,403) million to segment profit (loss) includes ¥2,944 million in corporate expenses, ¥(586)
million in (income) loss that are not allocated to reportable segments, and ¥45 million in eliminations due tointersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions and the system
logistics division, which are not part of the reportable segments.
2. Segment profit (loss) is adjusted with the ordinary profit of quarterly consolidated statements of income.

2. Impairment losses on fixed assets and goodwill by reportable segment[Significant impairment losses on fixed assets]:
There are no applicable matters to be reported.
[Significant changes in the amount of goodwill]:
There are no applicable matters to be reported.

11

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2022

II Six months ended October 31, 2021 (May 1, 2021 to October 31, 2021)
1. Net sales and profit (loss) by reportable segment(Million yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Reportable segments
Adjustments(Note) 1

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses(1) Sales to third parties

136,905

9,816

6,250

152,972-

152,972(2) Intersegment sales

-

-

47

47

(47)

-

136,905

9,816

6,297

153,019(47)

152,972

10,491(1,125)

(121)

9,244

(3,117)

6,127

Total

Sales

Total sales
Segment profit (loss)
Notes:

1. The adjustment of ¥(3,117) million to segment profit (loss) includes ¥3,659 million in corporate expenses, ¥(702)million in (income) loss that are not allocated to reportable segments, and ¥159 million in eliminations due tointersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions and the system
logistics division, which are not part of the reportable segments.
2. Segment profit (loss) is adjusted with the ordinary profit of quarterly consolidated statements of income.

2. Impairment losses on fixed assets and goodwill by reportable segment[Significant impairment losses on fixed assets]:
There are no applicable matters to be reported.
[Significant changes in the amount of goodwill]:
There are no applicable matters to be reported.
3. Changes in reportable segments
As explained in Changes in accounting policies, the accounting treatment for revenue recognition has changed due tothe application of the Accounting Standard for Revenue Recognition, etc. from the beginning of the first quarter. As result,the calculation method for profit and loss in business segments has also changed.
Compared with the previous method, in the second quarter, the new method reduced sales in the cosmetic and drug
store business segment by ¥561 million and increased segment profit by ¥8 million, and reduced sales in the otherbusinesses segment by ¥28 million.

12