Summary of Financial Statements for Fiscal Year Ended April 2018
June 5, 2018
AIN HOLDINGS INC.
First Section of Tokyo Stock Exchange and Sapporo Securities Exchange
9627
URL: http://www.ainj.co.jp/
Kiichi Otani, President and Representative Director
Toshihide Mizushima, Representative Senior Managing Director
TEL: +81-11-814-1000
Date of the ordinary general meeting of shareholders:
July 27, 2018
Date of scheduled payment of dividends:
July 30, 2018
Date of filing securities report:
July 31, 2018
Supplementary documents for this summary of financial statements: Yes
Explanation meeting for financial results:
Yes (for institutional investors and analysts)
Name of listed company:
Exchange listed on:
Code number:
Representative:
Inquiries:(Amounts are rounded down to the nearest million yen.)

1. Consolidated results for the fiscal year ended April 2018 (from May 1, 2017 to April 30, 2018)(Percentage figures show year-on-year changes.)(1) Consolidated operating results
Net salesYear ended April 30, 2018Year ended April 30, 2017

Operating income

Profit attributable toowners of parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

268,385
248,110

8.2
5.6

19,622
14,56334.7(0.4)

20,12915,08033.5(0.5)

10,567
7,949

32.9
0.4

Earnings per
share

Diluted earnings
per share(Note) Comprehensive income:Year ended April 30, 2018: ¥10,376 million (+27.7%)
Year ended April 30, 2017: ¥8,122 million (+3.7%)

Yen

Yen

310.08250.71

Year ended April 30, 2018Year ended April 30, 2017

Ordinary income
to total assets

Return on equity%––

Operating income
to net sales

%

13.5
14.0

%

11.8
10.2

(Reference) Equity in earnings of affiliates: Year ended April 30, 2018: ¥ – million, Year ended April 30, 2017: ¥ – million(2) Consolidated financial position
Total assets
Million yen

Million yen

183,435
156,323

As of April 30, 2018
As of April 30, 2017

Shareholders’ equity
ratio

Net assets(Reference) Equity capital: As of April 30, 2018: ¥96,697 million

Year ended April 30, 2017

2. Dividends

Year ended April 30, 2017
Year ended April 30, 2018Year ending April 30, 2019
(forecast)

Cash flows fromfinancing activities

Million yen

21,656
18,4092,729.44
1,895.63

As of April 30, 2017: ¥60,105 million

Cash flows frominvesting activities

Million yen
Year ended April 30, 2018

Yen

52.7
38.4

(3) Consolidated cash flows
Cash flows fromoperating activities

Net assets per share%

96,73360,178Cash and cash
equivalents
at end of year

Million yen(5,281)(11,183)

Million yen

17,623
116

Dividends per share
1Q-end2Q-end3Q-endYear-end

Annual

Yen

–
–

Yen

0.00
0.00

Yen

–
–

Yen

50.00
50.00

Yen

50.00
50.00

–

0.00

–

55.00

55.00

Total
dividends(annual)Million yen

1,585
1,771

7.3
5.9

63,23329,234

Dividends
payout ratio

Dividends on
net assets

19.9
16.1

2.8
2.2

(consolidated)%

21.0(consolidated)%3. Consolidated financial forecast for the fiscal year ending April 30, 2019 (from May 1, 2018 to April 30, 2019)
Net sales

Operating income(Percentage figures show year-on-year changes.)
Net income
Ordinary income
Net income
per share
Million yen%
Million yen%
Yen

Million yen%

Million yen%

First half

132,350

0.0

7,040

(15.9)

7,290(15.9)

3,740(15.4)

105.57Full year

272,870

1.7

17,500(10.8)

18,000(10.6)

9,260(12.4)

261.38* Notes(1) Major changes in subsidiaries during the fiscal year (changes in specified subsidiaries resulting in changes inscope of consolidation): No
Newly consolidated: –Excluded: –(2) 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.: No
2) Changes in accounting principles other than 1):
No3) Changes in accounting estimates:
No4) Restatement of revisions:No(3) Number of outstanding shares (common stock):1) Number of outstanding
shares (including treasury As of April 30, 2018
stock):
2) Number of shares held in
As of April 30, 2018
treasury:
3) Average number of
Fiscal year endedApril 30, 2018
shares outstanding:

35,428,212 shares As of April 30, 2017

31,888,212 shares

688 shares As of April 30, 2017180,644 shares

34,079,508 sharesFiscal year endedApril 30, 2017

31,707,568 shares*This Summary of Financial Statements is outside the scope of audit procedures.
*Statement regarding the proper use of financial forecasts and other special remarks:
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 Fiscal Year Ended April 30, 2018

Contents of Attachment
1. Operating Results and Other................................................................................................................................ 2(1) Overview of operating results for the current fiscal year .................................................................................................. 2(2) Overview of financial position for the current fiscal year .................................................................................................. 3(3) Overview of cash flows for the current fiscal year ............................................................................................................ 3(4) Future outlook .................................................................................................................................................................. 4

2. Basic stance on selection of accounting standards ............................................................................................. 4
3. Consolidated Financial Statements ...................................................................................................................... 5(1) Consolidated balance sheet............................................................................................................................................. 5(2) Consolidated statement of income and comprehensive income ...................................................................................... 7
Consolidated statement of income ................................................................................................................................... 7
Consolidated statement of comprehensive income.......................................................................................................... 9(3) Consolidated statement of changes in net assets .......................................................................................................... 10(4) Consolidated statement of cash flows............................................................................................................................ 12(5) Notes to Consolidated statements ................................................................................................................................. 14

1. Operating Results and Other................................................................................................................................ 2(1) Overview of operating results for the current fiscal year .................................................................................................. 2(2) Overview of financial position for the current fiscal year .................................................................................................. 3(3) Overview of cash flows for the current fiscal year ............................................................................................................ 3(4) Future outlook .................................................................................................................................................................. 4

2. Basic stance on selection of accounting standards ............................................................................................. 4
3. Consolidated Financial Statements ...................................................................................................................... 5(1) Consolidated balance sheet............................................................................................................................................. 5(2) Consolidated statement of income and comprehensive income ...................................................................................... 7
Consolidated statement of income ................................................................................................................................... 7
Consolidated statement of comprehensive income.......................................................................................................... 9(3) Consolidated statement of changes in net assets.......................................................................................................... 10(4) Consolidated statement of cash flows............................................................................................................................ 12(5) Notes to Consolidated statements ................................................................................................................................. 14(Notes on the premise of a going concern) ........................................................................................................................ 14(Segment Information, etc.) ................................................................................................................................................ 14-1-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2018

1. Operating Results and Other(1) Overview of operating results for the current fiscal year
During the fiscal year ended April 30, 2018, the Japanese economy improved at a moderate pace amid signsof a pickup in consumer spending and improving corporate earnings and employment conditions.
In this economic environment, the AIN HOLDINGS Group (the Group) worked to expand its business andincrease earnings. Specifically, the Group opened new dispensing pharmacies and used M&A to expand thebusiness. It also developed its cosmetic and drug store business.
The Group is also actively working to create better working environments. AIN PHARMACIEZ INC., theGroup's core operating company, has been awarded the highest “Eruboshi” certification by the Minister of
Health, Labour and Welfare in recognition of its efforts to support women’s participation and careeradvancement in the workplace.
For the fiscal year under review, net sales rose 8.2% year on year to ¥268,385 million, operating income
increased 34.7% to ¥19,622 million, ordinary income increased 33.5% to ¥20,129 million and profit attributableto owners of parent increased 32.9% year on year to ¥10,567 million.
Performance by business segment was as follows. Effective from the fiscal year under review, the Group haschanged the name of the drug and cosmetic store business to the cosmetic and drug store business. This is achange in name only and does not affect segment information.
(Dispensing pharmacy business)
In drug price and dispensing fee revisions in April 2018, the role of pharmacies located near hospitals andpharmacies located in the same premises was reviewed, with primary care dispensing pharmacies andpharmacists receiving a higher evaluation as part of government efforts to drive a structural shift fromdispensing focused only on dispensing drugs to dispensing focused on services that contribute to local
healthcare services.
To ensure our pharmacists and dispensing pharmacies fulfill their primary care role, the Group continues tobuild links with local medical service providers, strengthen pharmaceutical management and guidance basedon the integrated and continuous management of drug information using patient medication notebooks andother means, and promote wider use of generic drugs.
The shortage of pharmacists in the healthcare sector is becoming more serious. To address this issue, theGroup is working to attract new graduates, with 279 new pharmacist graduates joining the Group in April 2018.
The Group is also upgrading pharmacist training programs to enhance their capabilities so that they can fill
their role as pharmacists at the heart of the community.
In business development, the Group pushed ahead with business expansion by opening new dispensing
pharmacies and using M&A deals. Store operations are also being overhauled.
During the fiscal year under review, the dispensing pharmacy business reported sales and profit growth withsales rising 7.6% year on year to ¥238,645 million and segment income increasing 18.6% to ¥22,668 million.
During the same period, the Group opened 36 new dispensing pharmacies, including those acquired
through M&A deals, and closed 73 pharmacies, resulting in a total of 1,029.
(Cosmetic and drug store business)
In the cosmetic and drug store business, the market environment remained challenging due to a narrowing
competitive gap between companies in the sector and the emergence of new competitors from sector
consolidation and realignment that also extends to other business sectors.
Against this backdrop, the Group continued to open ainz & tulpe cosmetic and drug stores in Tokyo
metropolitan area and worked to make stores more appealing by refurbishing existing stores and strengthening
merchandise lineups, particularly cosmetics and drug products. Earnings also improved, supported by lower-2-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2018

costs due to greater business efficiency and by an increase in the gross margin due to active efforts to develop
LIPS and HIPS, cocodecica and other proprietary brands and an overhaul of procurement activities.
As a result, for the fiscal year under review, the cosmetic and drug store business reported an increase insales of 12.8% year on year to ¥24,117 million. And segment income was ¥657 million, compared with segment
loss of ¥866 million a year earlier.During the fiscal year under review, the Group opened the ainz & tulpe
Odakyu Department Store Machida (Machida City, Tokyo), ainz & tulpe MARUI KICHIJOJI (Musashino City,
Tokyo), ainz & tulpe Grand Emio TOKOROZAWA (Tokorozawa City, Saitama) and ainz Grand EmioTOKOROZAWA (Tokorozawa City, Saitama)
and closed eight stores, resulting in a total of 48 cosmetic anddrug stores at the end of the fiscal year.
(Other businesses)
Net sales from other businesses rose 14.2% year on year to ¥5,623 million and segment loss was ¥1,164
million compared with the loss of ¥1,496 million a year earlier.

(2) Overview of financial position for the current fiscal year
The balance of total assets at the end of the fiscal year under review increased by ¥27,112 million from theend of the previous fiscal year to ¥183,435 million. That mainly reflected an increase in cash and deposits fromthe public offering and private placements.
The balance of liabilities at the end of the fiscal year under review decreased by ¥9,441 million to ¥86,702
million.
The balance of short- term and long-term debts decreased by ¥7,622 million to ¥18,228 million.
Total net assets increased by ¥36,554 million to ¥96,733 million and the shareholders’ equity ratio increased
14.3 percentage points to 52.7%.

(3) Overview of cash flows for the current fiscal year
In the fiscal year under review, cash on hand and in banks (“cash”) increased ¥33,998 million year on year to¥63,233 million.
Cash flows from each category and their relevant factors are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥21,656 million, compared with net cash provided of ¥18,409
million in the previous fiscal year.
The main items that were positive for cash flow were income before income taxes of ¥17,852 million, as well
as depreciation and amortization of ¥3,596 million and amortization of goodwill of ¥3,937 million related tobusiness expansion through new store openings and M&A.
The main item negative for cash flow was income taxes paid of ¥5,487 million.
(Cash flows from investing activities)
Net cash used in investing activities was ¥5,281 million, compared with net cash used of ¥11,183 million in
the previous fiscal year.
This mainly reflected payments of ¥3,134 million for purchases of property, plant and equipment related tothe opening of new cosmetic and drug stores and dispensing pharmacies, and ¥1,310 million for purchases ofshares in subsidiaries due to changes in the scope of consolidation related to shares acquired in sevencompanies through M&A deals.

-3-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2018

(Cash flows from financing activities)
Net cash provided by financing activities was ¥17,623 million, compared with net cash provided of ¥116
million in the previous fiscal year.
The main cash inflow was ¥27,631 million from the issue of new shares and sale of treasury stock related toa public offering and private placements.
The main cash outflows were net repayment of ¥7,775 million from short-term and long-term debt repayment
and proceeds, and ¥1,585 million for cash dividends paid.
Changes in the Group’s cash flow indicators are shown below.
Year ended April
30, 2015

Year ended April
30, 2016

Year ended April
30, 2017

Year ended April
30, 2018

Shareholders’ equity ratio (%)

42.0

38.1

38.4

52.7

Equity ratio based on market value (%)

117.9

121.0

156.6

141.0

Debt redemption term (years)

1.1

1.0

1.5

0.9

Interest coverage ratio (times)

179.2

226.6

128.0

184.5

Notes:

Shareholders’ equity ratio = Equity capital / total assets
Equity ratio based on market value = market capitalization / total assets
Debt redemption term = interest-bearing debt / operating cash flows
Interest coverage ratio = operating cash flows / interest paid
*All indicators are calculated based on consolidated financial data.
*Interest-bearing debt includes all liabilities recorded on the balance sheet on which interest is being paid.
*Operating cash flows and interest paid are calculated using the cash flows from operating activities and the interest paid on
the consolidated statements of cash flows.

(4) Future outlook
In the fiscal year ending April 30, 2019, the dispensing pharmacy business will continue to develop new
dispensing pharmacies and actively seek M&A opportunities. Also, the cosmetic and drug store business will
work to expand its business by continuing to open ainz & tulpe cosmetic and drug stores in the Tokyo
metropolitan area.
Based on these initiatives, the Group forecasts net sales for the fiscal year ending April 30, 2019 of ¥272,870
million, up 1.7% year on year, ordinary income of ¥18,000 million, down 10.6%, and profit attributable to ownersof parent of ¥9,260 million, a decrease of 12.4%.

2. Basic stance on selection of accounting standards
The Group has adopted Japanese accounting standards in order to facilitate comparison with other domestic
companies in the same sector.

-4-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2018

3. Consolidated Financial Statements(1) Consolidated balance sheet

AssetsCurrent assets
Cash on hand and in banks
Notes and accounts receivable
Merchandise
Supplies
Deferred tax assets
Short-term loans
Other accounts receivable
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
LandConstruction in progress
Other property, plant and equipment
Accumulated depreciation
Other property, plant and equipment, net
Total property, plant and equipment
Intangible fixed assets
Goodwill
Other intangible fixed assets
Total intangible fixed assets
Investments and other assets
Investments in securities
Long-term loans
Deferred tax assets
Net defined benefit asset
Deposits and guarantees
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Deferred assets
Share issuance cost
Total deferred assets
Total assets-5-(Thousand yen)Previous fiscal year
(As of April 30, 2017)

Current fiscal year
(As of April 30, 2018)

29,775,207
9,990,401
11,402,078
266,095
1,166,620
632,826
9,402,024
2,829,934(44,443)
65,420,745

63,779,278
10,466,175
9,372,438
208,024
1,611,680
641,5027,751,418
2,470,356(131,318)
96,169,556

28,026,344(12,661,079)
15,365,264
9,958,446
316,930
10,899,962(8,076,596)
2,823,365
28,464,007

28,310,780(13,376,674)
14,934,106
10,041,475
118,428
10,493,969(7,734,285)
2,759,683
27,853,694

40,939,448
2,170,041
43,109,490

38,011,184
2,121,560
40,132,745

2,435,333
1,194,373
2,167,711
22,423
10,443,221
3,378,326(312,044)
19,329,345
90,902,843

2,375,853
789,5112,216,602
9,576
11,339,078
2,985,996(540,114)
19,176,503
87,162,943––
156,323,588

103,394
103,394
183,435,894

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2018

Liabilities
Current liabilities
Accounts payable
Short-term debt
Accrued income taxes
Deposits received
Allowance for bonuses to employees
Allowance for bonuses to directors
Reserve for reward obligations
Provision for sales returns
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term debt
Lease obligations
Net defined benefit liability
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gains on securities
Remeasurement of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-6-(Thousand yen)Previous fiscal year
(As of April 30, 2017)

Current fiscal year
(As of April 30, 2018)

39,325,588
7,596,939
2,898,695
14,223,768
1,903,976
16,090410,502
14,1656,566,001
72,955,729

38,728,922
6,717,732
4,947,006
12,675,598
1,911,559
16,584
420,676
6,854
4,810,166
70,235,101

18,254,657
958,033
2,331,956
1,644,227
23,188,874
96,144,603

11,511,059
632,220
2,625,642
1,698,694
16,467,615
86,702,717

8,682,976
6,367,844
45,286,878(419,598)
59,918,101

21,894,976
20,500,942
54,268,915(1,869)96,662,966

86,407
101,414
187,82173,06160,178,984
156,323,588

84,947(50,788)
34,15936,051
96,733,176
183,435,894

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2018

(2) Consolidated statement of income and comprehensive income
Consolidated statement of income(Thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses
Promotion expenses
Salaries, allowances and bonuses
Provision of allowance for doubtful accounts
Provision for bonuses
Provision for directors’ bonuses
Retirement benefit expenses
Provision for reward obligations
Legal and employee benefits expenses
Correspondence and transportation expenses
Lease expenses
Rent expenses
Depreciation expenses
Amortization of goodwill
Taxes
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gains on investments in partnership
Commissions received
Real estate rental revenue
Gains on donations of fixed assets
Consignment income
Technical advisory fee
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expenses
Losses on sales of accounts receivables
Real estate rental expenses
Provision of allowance for doubtful accounts
Other non-operating expenses
Total non-operating expenses
Ordinary income-7-

Previous fiscal year
(May 1, 2016
to April 30, 2017)248,110,130
206,017,329
42,092,801

Current fiscal year
(May 1, 2017
to April 30, 2018)268,385,718
220,392,308
47,993,409

2,494,327
1,413,588
5,081,376–
546,890
16,090128,970
407,488
1,643,624
810,625
95,531
4,161,213
593,978
3,525,577
1,133,805
5,476,245
27,529,333
14,563,467

2,719,678
1,019,203
5,267,071
132,742554,167
16,809117,648417,369
1,854,465
806,325
85,4904,205,217
646,094
3,898,547
1,181,523
5,448,281
28,370,637
19,622,772

68,12340,46663,542
44,106
193,701
8,914
149,944
62,765
299,773
931,338

65,84436,034
136,615
61,104
181,137
19,146201,261
70,371
345,858
1,117,375

143,788
67,20589,465–
113,733
414,192
15,080,613

117,466
71,654
88,972200,600
131,878
610,571
20,129,575

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2018
(Thousand yen)Previous fiscal year
(May 1, 2016
to April 30, 2017)
Extraordinary income
Gains on sales of fixed assets
Gains on sales of investments in securities
Compensation income
Gain on transfer of business
Surrender value of insurance
Gain on step acquisitions
Other extraordinary income
Total extraordinary income
Extraordinary losses
Losses on disposal and sales of fixed assets
Impairment losses on fixed assets
Directors’ retirement benefits
Bad debts expenses
Loss on valuation of investments in capital
Other extraordinary losses
Total extraordinary losses
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent-8-

Current fiscal year
(May 1, 2017
to April 30, 2018)

11,236
264,703
23,09932,29563,977–59,887455,200

76,041
8,773–
59,22831,71049,00030,732
255,486

488,814453,942
11,481
216,400–
57,6181,228,257
14,307,556
6,040,238
310,606
6,350,844
7,956,712
7,312
7,949,399

624,865
1,175,521
127,930–
440,000
164,1532,532,470
17,852,591
7,863,126(540,940)
7,322,186
10,530,405(37,010)
10,567,415

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2018

Consolidated statement of comprehensive income

ProfitOther comprehensive income
Unrealized holding gains (losses) on securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income (loss)
Total comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income (loss) attributable tonon-controlling interests-9-

Previous fiscal year
(May 1, 2016
to April 30, 2017)
7,956,712(Thousand yen)
Current fiscal year
(May 1, 2017
to April 30, 2018)
10,530,405

149,703
16,546
166,250
8,122,962
8,115,650(1,459)(152,202)(153,662)
10,376,743
10,413,753

7,312(37,010)

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2018

(3) Consolidated statement of changes in net assets
Previous fiscal year (May 1, 2016 to April 30, 2017)(Thousand yen)
Shareholders’ equity
Common stock
Balance at the beginning ofcurrent year

Capital surplus

8,682,976

Retained earnings

6,367,844

Total shareholders’equityTreasury stock

38,605,783(419,311)

53,237,293

Net changes during the year
Cash dividends paid

(1,268,304)(1,268,304)

Profit attributable toowners of parent

7,949,399

7,949,399

Acquisition of treasury
stock

(286)

(286)

Net change in items otherthan shareholders’ equity
Total changes during theyear
Balance at the end ofcurrent year––

6,681,094(286)

6,680,808

8,682,976

6,367,844

45,286,878(419,598)

59,918,101

Accumulated other comprehensive income
Unrealized holding gains(losses) on securities
Balance at the beginning ofcurrent year

Remeasurements ofdefined benefit plans(63,296)

84,867

Total accumulated othercomprehensive income
21,570Non-controllinginterests

65,748

Total net
assets53,324,613

Net changes during the year
Cash dividends paid

(1,268,304)

Profit attributable toowners of parent

7,949,399

Acquisition of treasurystock
Net change in items otherthan shareholders’ equity(286)
149,703

16,546

166,250

7,312

173,563

Total changes during theyear

149,703

16,546

166,2507,312

6,854,371

Balance at the end ofcurrent year

86,407

101,414

187,82173,06160,178,984- 10 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2018

Current fiscal year (May 1, 2017 to April 30, 2018)(Thousand yen)
Shareholders’ equity
Common stock
Balance at the beginning ofcurrent year

Capital surplus

Retained earnings

8,682,976

6,367,844

13,212,000

13,212,000

Total shareholders’equityTreasury stock

45,286,878(419,598)

59,918,101

Net changes during the year
Issuance of new shares

26,424,000

Cash dividends paid

(1,585,378)(1,585,378)

Profit attributable toowners of parent

10,567,415

10,567,415

Acquisition of treasury
stock
Disposal of treasurystock

921,097

(373)

(373)

418,1021,339,200

Net change in items otherthan shareholders’ equity
Total changes during theyear

13,212,000

14,133,097

8,982,037

417,728

36,744,864

Balance at the end ofcurrent year

21,894,976

20,500,942

54,268,915(1,869)96,662,966

Total accumulated othercomprehensive income(loss)

Non-controllinginterests

Total net
assets187,82173,061

Accumulated other comprehensive income
Unrealized holding gains(losses) on securities
Balance at the beginning ofcurrent year

Remeasurements ofdefined benefit plans

86,407

101,41460,178,984

Net changes during the year
Issuance of new shares

26,424,000

Cash dividends paid

(1,585,378)

Profit attributable toowners of parent

10,567,415

Acquisition of treasury
stock

(373)

Disposal of treasury stock
Net change in items otherthan shareholders’ equity

1,339,200(1,459)(152,202)(153,662)(37,010)(190,672)

Total changes during theyear(1,459)(152,202)(153,662)(37,010)36,554,191

Balance at the end ofcurrent year

84,947(50,788)

34,15936,051

96,733,176- 11 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2018

(4) Consolidated statement of cash flows
Previous fiscal year
(May 1, 2016
to April 30, 2017)
Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Amortization of goodwill
Impairment losses on fixed assets
Loss on valuation of investments in capitalGain on step acquisitions
Increase (decrease) in allowance for doubtful accounts
Increase in reserve for reward obligations
Increase in defined benefit liability
Gain on transfer of business
Decrease in provision for sales returns
Increase in allowance for bonuses to employees
Increase in allowance for bonuses to directors
Interest and dividend income
Interest expenses
Gains on investments in partnerships
Gains on donations of property, plant and equipment
Gains on sales of investments in securities
Losses on disposal and sales of fixed assets(Increase) decrease in accounts receivable
Bad debts expenses
Decrease in inventories
Decrease (increase) in other assets
Decrease (increase) in other accounts receivable
Decrease in accounts payable(Decrease) increase in other liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities- 12 -

14,307,556
3,687,357
3,654,962
453,942––(15,952)
20,302
233,656(32,295)(1,649)197,498
2,500(108,590)
143,788(52,238)(8,914)(263,332)
477,577
5,369,379
216,400
449,770
2,536,585(2,820,742)(4,340,024)
2,028,050
26,135,588
112,496(143,784)(7,695,211)
18,409,088(Thousand yen)

Current fiscal year
(May 1, 2017
to April 30, 2018)

17,852,591
3,596,297
3,937,685
1,175,521
440,000(49,000)
313,090
10,173
157,995(59,228)(7,310)467
494(101,879)
117,466(135,499)(19,146)(2,879)548,824(25,383)–
2,278,272
64,761
1,685,264(1,076,904)(3,544,116)
27,157,558
104,361(117,370)(5,487,943)
21,656,606

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2018

Previous fiscal year
(May 1, 2016
to April 30, 2017)
Cash flows from investing activities
Payments for purchases of property, plant andequipment
Proceeds from sales of property, plant and equipment
Payments for purchases of investments in securities
Proceeds from sales of investments in securities
Purchases of subsidiaries’ shares resulting in obtaining
controls
Payments for loans receivable
Proceeds from collections of loans receivable
Payments for investments in capital
Proceeds from returns of investments in capital
Payments for purchase of intangible fixed assets
Proceeds from sales of intangible assets(Increase) decrease in other investments
Proceeds from withdrawal of time deposits
Payments for time deposits
Net cash used in investing activities
Cash flows from financing activities
Net decrease in short-term loans payable
Proceeds from long-term debts
Repayments of long-term debts
Repayments of lease obligations
Proceeds from issuance of common shares
Payments for purchase of treasury stock
Proceeds from sales of treasury stock
Cash dividends paid
Net cash provided by financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year

- 13 -(Thousand yen)

Current fiscal year
(May 1, 2017
to April 30, 2018)(2,415,960)(3,134,930)

513,663(52,883)
869,859

421,896(50,360)
84,440(9,697,743)(1,310,971)(349,207)
448,824(10)
25,399(1,032,219)
38,373
13,353534,838(79,580)(11,183,292)(404,988)
482,074(1,010)1,784(574,817)
897(868,085)
152,153(79,735)(5,281,653)(391,080)
11,729,595(9,217,451)(735,691)–(286)–(1,268,304)
116,780
7,342,577
21,892,179
29,234,757(119,556)–(7,656,320)(646,739)
26,292,646(373)
1,339,200(1,585,378)
17,623,478
33,998,430
29,234,757
63,233,188

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2018(5) Notes to Consolidated statements(Notes on the premise of a going concern)
There are no applicable matters to be reported.
(Segment Information, etc.)
a. Segment information
1. Description of the reportable segments
The Company’s reportable segments consist of those of its components for which it is possible to obtainseparate financial information that is examined by its Board of Directors on a regular basis for the purpose of
deciding on the allocation of corporate resources and assessing business performance.
The Group’s business comprises three units that together represent its main business units, namely,
dispensing pharmacy business that consists of operation of dispensing pharmacies, selling of generic drugs,
recruiting and consulting services, and cosmetic and drug store business that consists of the management ofcosmetic and drug stores as well as other businesses that consist mainly of real-estate leasing services. The
formulation and examination of business strategy is conducted individually for each business.
Accordingly, the reportable segments of the Group are composed of three units, namely, dispensing
pharmacy business, cosmetic and drug store business and other businesses.
Effective from the fiscal year under review, the Group has changed the name of the drug and cosmetic
store business to the cosmetic and drug store business. This is a change in name only and does not affectsegment information. As a result, information for the previous fiscal year is unchanged.
2. Methods to determine the amounts of net sales, income or losses, assets, liabilities and other items byreportable segment
The methods used for accounting for the reportable business segments are generally similar to thosedescribed in the Basic Important Matters for Preparation of Consolidated Financial Statements.
The income figures for the reportable segments are expressed at the ordinary income level. Intersegment
sales and transfers are based on prevailing market prices.

- 14 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2018

3. Sales, income (loss), assets, liabilities and other items for each reportable segment
I. Previous fiscal year (May 1, 2016 to April 30, 2017)(Thousand yen)
Reportable segments
Adjustments(Note) 1

Consolidated(Note) 2

248,110,130–

248,110,130

379,620379,620(379,620)–

21,383,183

5,305,020

248,489,751(379,620)

248,110,130

19,110,100(866,490)(1,496,079)

16,747,531(1,666,918)

15,080,613

148,765,029

10,118,204

11,054,416

169,937,650(13,614,062)

156,323,588

Depreciation
and amortization

2,299,471

357,869

400,910

3,058,251

201,916

3,260,168

Amortization of
goodwill

3,625,454–

29,5083,654,962–

3,654,962

Impairment losses

368,333

85,609–453,942–453,942

Increase of tangible
and intangible assets

2,620,583

907,174

381,086

3,908,844

26,1293,934,973

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Sales to third parties

221,801,546

21,383,183

4,925,399

Intersegment sales––

Total sales

221,801,546

Segment income (loss)
Segment assets

Otherbusiness

Total

Sales

Other

Notes:

1. Segment income (loss) in “Adjustments” totaling (¥1,666,918 thousand) includes ¥3,326,575 thousand in overall
group expenses, (¥1,645,795 thousand) in (income) losses that may not be allocated to the reporting segments,and (¥13,861 thousand) in elimination due to intersegment transactions.
The overall group expenses consist mainly of expenses associated with the administrative divisions of the parent
company, such as general affairs and accounting divisions.
Segment assets in “Adjustments” totaling (¥13,614,062 thousand) consist mainly of assets associated with theadministrative divisions of the parent company and the difference in elimination of intersegment transactions.
2. Segment income is adjusted with the ordinary income of consolidated statements of income.

- 15 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2018

II. Current fiscal year (May 1, 2017 to April 30, 2018)(Thousand yen)
Reportable segments
Adjustments(Note) 1

Consolidated(Note) 2

268,385,718–

268,385,718

278,427

278,427(278,427)–

24,117,511

5,901,632

268,664,145(278,427)

268,385,718

22,668,935

657,560(1,164,950)

22,161,545(2,031,970)

20,129,575

155,572,653

9,943,165

10,016,779

175,532,598

7,903,295

183,435,894

Depreciation
and amortization

2,229,867

334,276

387,714

2,951,858

191,617

3,143,476

Amortization of
goodwill

3,910,121–

27,564

3,937,685–

3,937,685

Impairment losses

803,158

128,802

243,560

1,175,521–

1,175,521

Increase of tangible
and intangible assets

1,523,070

931,038

1,183,124

3,637,234

305,148

3,942,382

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Sales to third parties

238,645,001

24,117,511

5,623,205

Intersegment sales––

Total sales

238,645,001

Segment income (loss)
Segment assets

Otherbusiness

Total

Sales

Other

Notes:

1. Segment income (loss) in “Adjustments” totaling (¥2,031,970 thousand) includes ¥3,783,988 thousand in overall
group expenses, (¥1,723,321 thousand) in (income) losses that may not be allocated to the reporting segments,and (¥28,696 thousand) in elimination due to intersegment transactions.
The overall group expenses consist mainly of expenses associated with the administrative divisions of the parent
company, such as general affairs and accounting divisions.
Segment assets in “Adjustments” totaling ¥7,903,295 thousand consist mainly of assets associated with theadministrative divisions of the parent company and the difference in elimination of intersegment transactions.
2. Segment income is adjusted with the ordinary income of consolidated statements of income.

- 16 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2018

b. Related information
Previous fiscal year (May 1, 2016 to April 30, 2017)
1. Information by product and service
This disclosure has been omitted because the same information is disclosed under Segment Information.
2. Information by region(1) Net sales
This disclosure has been omitted as the Group’s sales to external customers in Japan accounted for morethan 90% of sales on the consolidated statement of income.
(2) Property, plant and equipment
This disclosure has been omitted because the Group had no property, plant and equipment locatedoutside Japan at the balance sheet date.
Current fiscal year (May 1, 2017 to April 30, 2018)
1. Information by product and service
This disclosure has been omitted because the same information is disclosed under Segment Information.
2. Information by region(1) Net sales
This disclosure has been omitted as the Group’s sales to external customers in Japan accounted for morethan 90% of sales on the consolidated statement of income.
(2) Property, plant and equipment
This disclosure has been omitted because the Group had no property, plant and equipment locatedoutside Japan at the balance sheet date.
c. Information regarding impairment losses of fixed assets for each reported segment
Previous fiscal year (May 1, 2016 to April 30, 2017)
This disclosure has been omitted because the same information is disclosed under Segment Information.
Current fiscal year (May 1, 2017 to April 30, 2018)
This disclosure has been omitted because the same information is disclosed under Segment Information.

- 17 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2018

d. Information about goodwill amortization amount and year-end balance for each reportable segment
Previous fiscal year (May 1, 2016 to April 30, 2017)(Thousand yen)
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Amortization of current fiscal year

3,625,454

Balance at the end of current fiscal year

40,719,410

Otherbusinesses

Corporate /Eliminations–

29,508–3,654,962–

220,038–

40,939,448

Total

Current fiscal year (May 1, 2017 to April 30, 2018)(Thousand yen)
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

Corporate /Eliminations

Total

Amortization of current fiscal year

3,910,121–

27,564–

3,937,685

Balance at the end of current fiscal year

37,870,756–

140,428–

38,011,184

e. Information about gains on bargain purchase for each reported segment
Previous fiscal year (May 1, 2016 to April 30, 2017)
There are no applicable matters to be reported.
Current fiscal year (May 1, 2017 to April 30, 2018)
There are no applicable matters to be reported.

- 18 -