Summary of Financial Statements for the Third Quarter of Fiscal Year Ending April 2023
[Japan GAAP] (Consolidated)
March 3, 2023
Name of listed company:

AIN HOLDINGS INC.

Exchange listed on:

Prime Market 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:
March 17, 2023-

Start of dividend payment:

Yes (Supplementary materials for the quarterly results are disclosed on the Company’s website

Supplementary documents for quarterly results:

appropriately as the financial statements.)

Quarterly results briefing:No(Amounts are rounded down to the nearest million yen.)
1. Consolidated results for the third quarter of fiscal year ending April 30, 2023 (May 1, 2022 to January 31, 2023)(1) Consolidated operating results(Percentage figures show year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen%

Million yen%

Million yen%

Million yen%

263,906

12.5

11,685

14.4

12,367

14.5

6,628

6.4

Nine months ended January 31, 2022
234,610
6.6
10,21449.9
10,80037.7(Note) Comprehensive income:Nine months ended January 31, 2023: ¥6,643 million (+6.7%)
Nine months ended January 31, 2022: ¥6,229 million (+35.3%)

6,231

36.2

Nine months ended January 31, 2023

Earnings
per share

Diluted earnings
per share
Yen

Yen

Nine months ended January 31, 2023

188.70Nine months ended January 31, 2022

176.89––(2) Consolidated financial position
Total assets
As of January 31, 2023
As of April 30, 2022
(Reference) Shareholders’ equity:

Net assets

Shareholders’ equity ratio

Million yen

Million yen%

229,562

123,74353.9

212,461

119,01056.0

As of January 31, 2023: ¥123,674 million As of April 30, 2022: ¥118,923 million

2. Dividends
End of firstquarter
Yen
Year ended April 30, 2022––

End of second
quarter
Yen
0.00
0.00

Year ending April 30, 2023
Year ending April 30, 2023
(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

60.00

60.00

3. Consolidated financial forecasts for the fiscal year ending April 30, 2023 (May 1, 2022 to April 30, 2023)(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

358,000

13.2

17,18013.5

18,030

12.4

9,000

26.9

256.20(Note) Revision to the most recently announced consolidated financial forecasts: Yes
For more details about the revisions, please refer to today’s release (March 3, 2023), “Notice of the Revisions of Consolidated Financial Forecast.”*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 (3) Notes on quarterly consolidated financial
statements” on page 8 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 January 31, 2023 35,428,212 shares As of April 30, 2022
stock):
2) Number of shares held in
As of January 31, 2023
298,188 shares As of April 30, 2022
treasury:
3) Average number ofNine months ended
Nine months ended
35,128,813 sharesshares outstanding:January 31, 2022
January 31, 2023

35,428,212 shares
300,911 shares
35,227,303 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 Third Quarter of the Fiscal Year Ending April 30, 2023

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) Notes on quarterly consolidated financial statements ........................................................................................................ 8(Notes on the premise of a going concern) ........................................................................................................................ 8(Notes on significant changes in the amount of shareholders’ equity) ................................................................................ 8(Application of specified accounting methods for the preparation of quarterly consolidated financial statements) ............. 8(Changes in accounting policies)........................................................................................................................................ 8(Segment information, etc.) ................................................................................................................................................ 9

1

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2023

1. Qualitative information on consolidated results for the period under review(1) Consolidated operating results
During the first nine months of the current fiscal year (May 1, 2022 to January 31, 2023), there were signs of a moderate
pickup in the Japanese economy, but the outlook remained uncertain due to factors such as the impact of the COVID-19
pandemic, rising prices, and fluctuations in capital and financial markets. In this economic environment, the AIN HOLDINGSGroup (the Group) made concerted efforts to ensure the continued provision of healthcare and retail services by taking
rigorous steps to prevent infection at dispensing pharmacies and stores.
Through businesses that support human health and beauty, we aim to become a company that “people welcome to theircommunities.” In November 2022, we formulated the CSR Procurement Policy and Guidelines in order to realize one of theGroup’s materiality goals: Cooperate with local communities and businesses. We also signed the United Nations Global
Compact and joined the Global Compact Network Japan. Through our business activities, we will continue to generate
sustainable growth and social, environmental, and economic value while also promoting a sound and ethical approach in all
our activities.
In the first nine months of the fiscal year, net sales increased 12.5% year on year to ¥263,906 million, operating profit
increased 14.4% to ¥11,685 million, ordinary profit increased 14.5% to ¥12,367 million, and profit attributable to owners ofparent increased 6.4% to ¥6,628 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 cooperating withmedical institutions, using patient medication notebooks to ensure integrated and continuous monitoring of patient
medication, and providing services for home-based healthcare.
Ahead of the start of the Ministry of Health, Labour and Welfare’s (MHLW) new electronic prescription management service
in January 2023, the Group took part in a MHLW pilot project launched at the end of October 2022, which aimed to establish
operational processes, implement advanced initiatives, build up good practice and create guidelines. The Group's
pharmacies nationwide are now progressively upgrading operating environments to ensure compatibility with the newelectronic prescriptions from January 2023. We will continue to adapt our business to these and other developments in the
sector to ensure patients can continue to reliably access prescription medication with peace of mind.
In business development, we continue to target further business expansion through a strategy of actively opening large
pharmacies and pursuing M&A deals that emphasize investment returns, while also improving pharmacy operating efficiency.
For the first nine months of the fiscal year, the dispensing pharmacy business reported higher sales and profits comparedwith the same period a year earlier due to a recovery in the number of prescriptions at existing pharmacies and a strong
performance by pharmacies opened in the previous fiscal year. Sales increased 12.7% to ¥236,396 million and segment
profit rose1.3% to ¥18,023 million.
During the first nine months of the fiscal year, the Group opened a total of 130 dispensing pharmacies, including thoseacquired through M&A deals, closed 12 dispensing pharmacies and sold seven, resulting in a total of 1,210.
(Cosmetic and drug store business)
In the cosmetic and drug store business, the COVID-19 pandemic continued to impact performance, but we reviewed andoverhauled our portfolio of original brands and pushed ahead with rebuilding the business structure. As a result, for the firstnine months of the fiscal year, the cosmetic and drug store business reported net sales of ¥18,836 million, up 23.2% year
on year, and segment profit of ¥737 million, compared with a segment loss of ¥1,474 million in the same period a year earlier,supported by changes to the product mix and store opening criteria, and progress with cost optimization.
During the same period, the Group opened four AINZ & TULPE cosmetic and drug stores and closed six stores, resulting
in a total of 76 cosmetic and drug stores at the end of the third quarter.
(Other businesses)
Net sales from other businesses decreased 9.2% year on year to ¥8,716 million and segment loss was ¥2 million comparedwith the loss of ¥108 million a year earlier.
.

2

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2023

(2) Consolidated financial position
The balance of total assets at the end of the third quarter increased by ¥17,101 million from the end of the previous fiscal
year to ¥229,562 million. This mainly reflected increases for goodwill, merchandise and other assets due to the opening of
new stores and dispensing pharmacies, including locations acquired through M&A.
The balance of liabilities increased ¥12,368 million to ¥105,819 million. This was largely due to an increase for accounts
payable due to the opening of new stores and dispensing pharmacies, including locations acquired through M&A.
The balance of short- term and long-term borrowings increased by ¥1,393 million to ¥9,852 million.
Total net assets increased ¥4,733 million to ¥123,743 million and the shareholders’ equity ratio was decreased 2.1
percentage points to 53.9%.
(3) Forecast of consolidated financial results and other forward-looking information
The Group has revised its consolidated financial forecasts for the fiscal year ending April 30, 2023, which were announced
on June 3, 2022. For more details, please refer to today’s release (March 3, 2023), “Notice of the Revisions of Consolidated
Financial Forecast.”

3

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2023

2. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheet
Fiscal year endedApril 30, 2022
(As of April 30, 2022)

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)
Nine months ended
January 31, 2023
(As of January 31, 2023)

59,729
10,11014,568222
306
11,832
3,995
100,765

46,193
11,26923,403226
230
10,431
3,735
95,49017,512
8,581
4,542
30,636

20,591
10,584
7,343
38,51936,352
4,866
41,21947,5395,570
53,1102,503
5,319
22,785
10,526(1,294)
39,840111,696
212,461

2,938
6,118
24,8238,893(330)
42,443134,072
229,562

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2023

Fiscal year endedApril 30, 2022
(As of April 30, 2022)

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Income taxes payable
Deposits received
Provision for bonuses
Provision for bonuses for directors
Contract 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 income
Non-controlling interests
Total net assets
Total liabilities and net assets

5(Million yen)
Nine months ended
January 31, 2023
(As of January 31, 2023)

50,756
2,643
4,391
15,415
2,713
18
544
5,321
81,80560,9724,036
2,242
18,885
1,557
10
597
4,520
92,823

5,815
3,578
2,252
11,64593,450

5,816
4,623
2,556
12,995
105,819

21,89420,50078,661(2,018)
119,038

21,89420,504
83,357(2,000)123,756

(39)
(75)
(114)
86
119,010
212,461

(24)
(57)
(82)
69
123,743
229,562

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2023

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statements of income
Nine months ended
January 31, 2022
(May 1, 2021 toJanuary 31, 2022)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Commissions income
Rental income from real estate
Outsourcing service income
Subsidy income
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sales 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
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 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

6(Million yen)
Nine months ended
January 31, 2023
(May 1, 2022 toJanuary 31, 2023)

234,610
198,11036,50026,286
10,214

263,906
224,213
39,69228,006
11,685

31
35
11
334
132
92
2
316
957

36
62
12
151
165
169
–
367
965

34
63
215
57
370
10,800

40
75
92
75
283
12,367

200
13
4
131
16
366

2
73
35
–
1
113

194
61
119
54
429
10,737
4,523
6,214
(16)
6,231

153
183
–
36
372
12,108
5,497
6,611
(17)
6,628

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2023

Quarterly consolidated statements of comprehensive income
Nine months ended
January 31, 2022
(May 1, 2021 toJanuary 31, 2022)

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

7(Million yen)
Nine months ended
January 31, 2023
(May 1, 2022 toJanuary 31, 2023)

6,214

6,611

(15)
30
15
6,229
6,246

14
18
32
6,643
6,661

(16)

(17)

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2023

(3) 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)
There are no applicable matters to be reported.
(Application of specified accounting methods for the preparation of quarterly consolidated financial statements)
To calculate tax expenses, the effective tax rate on income before income taxes for the consolidated fiscal year after theapplication of tax effect accounting is reasonably estimated and the estimated rate is applied to income before income taxes
for the quarterly period.
(Changes in accounting policies)(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 31, June 17,2021; “Fair Value Measurement Standard”), etc. from the beginning of the first quarter. In accordance with the transitional
treatment stipulated in Paragraph 27-2 of the “Fair Value Measurement Standard”, 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.

8

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2023

(Segment information, etc.)
I Nine months ended January 31, 2022 (May 1, 2021 to January 31, 2022)
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

209,793

15,2869,530

234,610-

234,610(2) Intersegment sales

-

-

71

71

(71)

-

209,793

15,286

9,601

234,681(71)

234,610

17,784(1,474)(108)

16,202(5,401)

10,800

Total

Sales

Total sales
Segment profit (loss)
Notes:

1. The adjustment of ¥(5,401) million to segment profit (loss) includes ¥6,195 million in corporate expenses, ¥(947)
million in (income) loss that are not allocated to reportable segments, and ¥152 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.

9

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2023

II Nine months ended January 31, 2023 (May 1, 2022 to January 31, 2023)
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

236,396

18,836

8,672

263,906-

263,906(2) Intersegment sales

-

-

43

43

(43)

-

236,396

18,836

8,716

263,949(43)

263,906

18,023737(2)18,758(6,390)12,367

Total

Sales

Total sales
Segment profit (loss)
Notes:

1. The adjustment of ¥(6,390) million to segment profit (loss) includes ¥7,269 million in corporate expenses, ¥(916)
million in (income) loss that are not allocated to reportable segments, and ¥37 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]:
In the dispensing pharmacy business segment, Pharmacy Holdings Co. Ltd. and its subsidiaries were included in thescope of consolidation from the first quarter of the current fiscal year following the acquisition of all shares in Pharmacy
Holdings Co. Ltd. In the first nine months of the fiscal year, the increase in goodwill related to these companies was ¥13,026
million.
Pharmacy Holdings Co., Ltd. was dissolved on December 1, 2022 after it was merged into its wholly owned subsidiary
PHARMACY Co. Ltd. (Fukuyama City, Hiroshima Prefecture), the surviving company.
In addition, the tentative calculation for goodwill applied in the first quarter of the fiscal year was finalized in the third
quarter.

10