Summary of Financial Statements for the First Quarter of Fiscal Year Ending April 2013
[Japan GAAP] (Consolidated)
August 29, 2012
Name of listed company:

AIN PHARMACIEZ INC.

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

Code number:

9627

URL:

http://www.ainj.co.jp/

Representative:
Inquiries:

Kiichi Otani, President and Representative Director
Toshihide Mizushima, Senior Managing Director and Chief Director of Administration
TEL: +81-11-783-0189
Date of filing quarterly securities report:
September 14, 2012
Start of dividend payment:–

Supplementary documents for quarterly results:

No

Quarterly results briefing:No(Amounts are rounded down to the nearest million yen.)
1. Consolidated results for the first quarter of fiscal year ending April 30, 2013 (May 1, 2012 to July 31, 2012)(1) Consolidated operating results(Percentage figures show year-on-year changes.)
Net sales
Operating income
Ordinary income
Net income
Three months ended July 31, 2012
Three months ended July 31, 2011
(Note) Comprehensive income:Million yen%

Million yen%

Million yen%

Million yen%

36,257

6.8

2,255

0.3

2,328

2.4

912

(12.9)

33,940
10.2
2,249
43.9
2,273
43.9
Three months ended July 31, 2012:¥1,039 million(-0.8%)
Three months ended July 31, 2011:¥1,047 million (+67.8%)

1,047

46.6

Net income
per share

Diluted net income
per share
Yen

Yen

Three months ended July 31, 2012

57.22

–

Three months ended July 31, 2011

65.71

–

(2) Consolidated financial position
Shareholders’equity ratio

Net assets

Total assets

Net assets per
share

Million yen

Million yen%

Yen

As of July 31, 2012

89,52733,98837.9

2,129.94

As of April 30, 2012

85,90833,74539.2

2,113.79(Reference) Shareholders’ equity

As of July 31, 2012: ¥33,952 million

As of April 30, 2012: ¥33,695 million

2. Dividends
Record date

End of firstquarterYen–

End of second
quarter
Yen
0.00

Dividend per share
End of third
quarter
Yen–

Year ended April 30, 2012–
Year ending April 30, 2013
Year ending April 30, 2013
0.00
(forecast)(Note) Revision to the most recently announced dividends forecasts: No–

End of year

Full year

Yen

Yen

50.00

50.00

60.00

60.00

3. Consolidated financial forecasts for the fiscal year ending April 30, 2013 (May 1, 2012 to April 30, 2013)(Percentage figures show year-on-year changes.)

Million yen%

Million yen%

Million yen%

Million yen%

Net income
per share
Yen

76,350

10.9

4,890

2.3

4,950

1.6

2,480

4.9

155.54

157,500

10.3

11,51012.3

11,630

10.3

6,010

22.7

376.94

Net salesFirst sixmonthsFull year

Operating income

Ordinary income

Net income(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. Matters concerning summary information (notes) (2) Application of specified
accounting methods for the preparation of quarterly consolidated financial statements” on page 3 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:
Yes
4) Restatement of revisions
No(Note) For detail, please refer to “2. Matters concerning summary information (notes) (3) Changes in accounting
principles, changes in accounting estimates, and restatement of revisions” on page 3 of the Attachment.
(4) Number of outstanding shares (common stock):1) Number of outstanding
shares (including treasury
As of July 31, 2012
stock):
2) Number of shares held in
As of July 31, 2012
treasury:
3) Average number ofThree months ended
shares outstanding:July 31, 2012

15,944,106 shares As of April 30, 2012

15,944,106 shares

3,366 shares As of April 30, 2012

3,316 shares

Three months ended
July 31, 201115,941,004 shares

15,940,757 shares*Status of execution of the quarterly review of financial statements
This quarterly financial summary is not subject to the quarterly review procedure based on the Financial Instruments andExchange Act. As of the time of disclosure, this review procedure for quarterly financial statements had not been
completed.
*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 PHARMACIEZ INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2013

Contents
1. Qualitative information on consolidated results for the period under review ............................................................................ 2(1) Qualitative information on the consolidated operating results ............................................................................................ 2(2) Qualitative information on the consolidated financial position ............................................................................................ 3(3) Qualitative information on the consolidated financial forecasts .......................................................................................... 3
2. Matters concerning summary information (notes) ................................................................................................................... 3(1) Major changes in subsidiaries during the period ................................................................................................................ 3(2) Application of specified accounting methods for the preparation of quarterly consolidated financial statements ............... 3(3) Changes in accounting principles, changes in accounting estimates, and restatement of revisions .................................. 3
3. Quarterly consolidated financial statements ............................................................................................................................ 4(1) Quarterly consolidated balance sheets............................................................................................................................... 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 the premise of a going concern ........................................................................................................................... 8(4) Notes on significant changes in the amount of shareholders’ equity .................................................................................. 8(5) Segment Information, etc. ................................................................................................................................................. 8

1

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2013

1. Qualitative information on consolidated results for the period under review(1) Qualitative information on the consolidated operating results
During the first three months of the current fiscal year (May 1, 2012 to July 31, 2012), conditions in the Japanese
economy remained difficult, although there was a moderate recovery centered on capital investment, manufacturing
activity and corporate earnings on the back of rebuilding demand.
In this economic environment, the AIN PHARMACIEZ Group (the Group) worked to expand its business and increase
earnings. Specifically, the Group opened new dispensing pharmacies, made effective use of M&A and developed medicalmalls. It also opened urban drug and cosmetic stores inside station retail areas and improved the merchandise lineup at
existing stores.
In the first three months of the fiscal year, net sales increased 6.8% year on year to ¥36,257 million, despite the impactof revisions to drug prices and dispensing fees in April 2012. Operating income rose 0.3% to ¥2,255 million and ordinary
income increased 2.4% to ¥2,328 million. Net income declined 12.9% year on year to ¥912 million, due mainly to loss on
sales of investments in securities and impairment losses on investments in securities.
Financial results by business segment are as follows:(Dispensing pharmacy business)
Although the average drug price was reduced by 6.25% under the drug price revisions in April 2012, the averageprescription price at existing dispensing pharmacies and dispensing pharmacy sales were roughly level with the same
period a year earlier due to an increase in longer-term prescriptions.
The dispensing pharmacy business continued to open specialist dispensing pharmacies near hospitals and conduct
M&A. It also pushed ahead with the development of medical malls and implemented a range of comprehensive initiatives
across the Group in areas such as dispensing pharmacy management, facility development, and marketing to attract
clinics to its medical malls.
The Group hired nearly 190 new pharmacist graduates following a period when there were no new graduates due to ashift to six-year pharmacy college courses. These new employees were assigned to the Group’s dispensing pharmacies
throughout Japan after completing a one-month joint training program.
In order to improve operational efficiency at dispensing pharmacies, business areas were overhauled through thetransfer of dispensing pharmacies between different parts of the Group. All the Group’s dispensing pharmacies in theTokyo metropolitan area also became directly managed by AIN PHARMACIEZ through a merger with AIN MEDICALSYSTEMS INC. (effective August 1, 2012).
As a result, for the first three months of the fiscal year, the dispensing pharmacy business reported sales and income
growth year on year, with net sales rising 6.2% to ¥31,987 million and segment income increasing 5.2% to ¥2,846 million.
During the period under review, the Group opened 15 new dispensing pharmacies, including those acquired throughM&A deals, resulting in a total of 509 dispensing pharmacies.
(Drug and cosmetic store business)
Despite an upturn in consumer spending, the drugstore sector continued to face a challenging market environment due
to competition related to store openings and prices. This was compounded by a decline in demand compared with thesame period last year when demand spiked after the Great East Japan Earthquake.
Against this backdrop, the Group clarified its concept of unique urban drug and cosmetic stores under the ainz & tulpe
brand and continued to open stores in urban areas with high levels of customer traffic. In addition, the drugstore business
operated by subsidiary AIN MEDIO, INC. was spun off and absorbed by AIN PHARMACIEZ INC. to bring the subsidiary’s
drug store business under direct management and improve efficiency in administrative divisions.
The business also worked to boost earnings by strengthening merchandise lineups on a store-by-store basis to tailor
lineups to each retail area and location, and by making greater use of mobile marketing tools in sales promotion.
As a result, for the first three months of the fiscal year, the drug and cosmetic store business reported an increase inboth sales and income year on year, with net sales rising 10.6% to ¥4,153 million and segment income increasing 34.6%
to ¥58 million.
During the period under review, the business opened two new stores; the ainz & tulpe Nakano Central Park East Store(Nakano Ward, Tokyo) and the Yokohama Porta Store (Nishi Ward, Yokohama). It also closed one suburban drugstore,
resulting in a Group total of 57 stores.
(Other businesses)
Net sales and segment loss from other businesses were ¥116 million and ¥94 million, respectively.

2

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2013

(2) Qualitative information on the consolidated financial position
The balance of total assets at the end of the first quarter increased by ¥3,619 million from the end of the previous fiscal
year to ¥89,527 million.
This mainly reflected an increase in inventories, other accounts receivable, property, plant and equipment such asbuildings and structures, and lease and guarantee deposits, owing to the Group’s business expansion.
The balance of liabilities rose ¥3,376 million to ¥55,538 million, mainly reflecting an increase in accounts payable.
The balance of interest-bearing debt decreased by ¥513 million to ¥12,202 million.
Total net assets increased by ¥242 million to ¥33,988 million and the shareholders’ equity ratio declined 1.3 percentage
points to 37.9%.
(3) Qualitative information on the consolidated financial forecasts
The Group has made no change to its earnings forecasts for the first six months of the fiscal year and for the full fiscal
year, announced May 30, 2012, in light of earnings trends at new stores and existing stores in the first three months of the
fiscal year and future store opening plans.

2. Matters concerning summary information (notes)(1) Major changes in subsidiaries during the period
There are no applicable matters to be reported.
(2) Application of specified accounting methods for the preparation of quarterly consolidated financial statements
Tax expenses were calculated by reasonably estimating the effective tax rate after the application of tax effectaccounting to net income before taxes for the consolidated fiscal year including the first quarter, and multiplying theestimated effective tax rate by income before income taxes for the quarter.
In addition, deferred income taxes are included in income taxes.
(3) Changes in accounting principles, changes in accounting estimates, and restatement of revisions(Change in accounting policies that may be difficult to distinguish from changes in accounting estimates)
Effective from the fiscal period under review, the Company has changed its depreciation method for property, plant andequipment in accordance with revisions to the Corporation Tax Law. The new method is applied to property, plant andequipment acquired by the Company on or after May 1, 2012, and to property, plant and equipment acquired byconsolidated subsidiaries on or after April 1, 2012.
This change had a minimal impact on operating income, ordinary income and net income for the first three months of
the fiscal year under review.

3

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2013

3. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(Thousand yen)

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, net
Land
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
Deferred tax assets
Lease and guarantee deposits
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Deferred assets
Stock issuance cost
Total deferred assets
Total assets

4

Fiscal year endedApril 30, 2012
(As of April 30, 2012)

Three months ended
July 31, 2012
(As of July 31, 2012)

15,935,326
10,985,402
8,138,749
114,663891,515
606,000
2,757,752
917,774(26,875)
40,320,310

14,778,887
10,765,598
10,412,619
109,621929,825
156,000
5,086,661
664,536(25,777)
42,877,971

7,048,953
5,621,786
2,586,164
15,256,904

7,468,513
5,711,123
2,539,265
15,718,901

17,664,823
990,546
18,655,369

17,670,137
996,183
18,666,321

2,825,629
1,122,782
5,758,338
2,208,196(256,986)
11,657,961
45,570,235

2,704,227
1,038,837
6,475,625
2,287,407(255,786)
12,250,310
46,635,533

17,74817,74885,908,294

13,827
13,82789,527,332

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2013

(Thousand yen)

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
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term debt
Allowance for retirement benefits
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 losses on securities
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

5

Fiscal year endedApril 30, 2012
(As of April 30, 2012)

Three months ended
July 31, 2012
(As of July 31, 2012)

22,524,795
6,397,458
2,739,772
7,714,207
965,445
12,846
302,0112,288,815
42,945,352

27,804,402
6,596,640
845,132
7,827,511
1,010,072
5,174
302,0112,478,173
46,869,119

6,318,430
1,448,905
1,449,631
9,216,967
52,162,319

5,605,656
1,508,827
1,555,209
8,669,692
55,538,812

8,682,976
7,872,970
17,426,435(5,627)33,976,755

8,682,976
7,872,970
17,541,453(5,837)34,091,563(281,315)(281,315)
50,53533,745,975
85,908,294(138,710)(138,710)
35,66733,988,520
89,527,332

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2013

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statements of income
Three months ended
July 31, 2011
(May 1, 2011 toJuly 31, 2011)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Commissions received
Real estate rental revenue
Consignment income
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expenses
Loss 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
Extraordinary income
Gain on sales of investments in securities
Gain on sales of fixed assets
Insurance income
Other extraordinary income
Total extraordinary income
Extraordinary losses
Loss on disposal and sales of fixed assets
Loss on sales of investments in securities
Impairment losses on investments in securities
Impairment losses on fixed assets
Directors’ retirement benefits
Other extraordinary losses
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests
Net income

6(Thousand yen)Three months ended
July 31, 2012
(May 1, 2012 toJuly 31, 2012)

33,940,547
28,606,428
5,334,119
3,084,852
2,249,266

36,257,718
30,356,263
5,901,455
3,645,983
2,255,471

15,70021,717
12,98025,55727,08545,677
148,719

14,495
19,514
13,60828,87934,46947,454
158,423

48,127
16,8948,935
30,00020,262
124,219
2,273,766

35,482
17,712
9,281－
23,19285,6692,328,225

3,465
－
－
－
3,465

－
10,88150,000809
61,69017,4303,466
48,706
65,5837,000
20,755
162,942
2,114,288
1,076,808
1,037,480(10,074)
1,047,554

37,299107,387
209,958－
310,000
17,089681,734
1,708,181
810,991
897,190(14,867)
912,057

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2013

Quarterly consolidated statements of comprehensive income(Thousand yen)Three months ended
July 31, 2011
(May 1, 2011 toJuly 31, 2011)

Income before minority interests
Other comprehensive income
Unrealized holding gains on securities
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to shareholders of
the parent
Comprehensive income attributable to minority
interests

7

Three months ended
July 31, 2012
(May 1, 2012 toJuly 31, 2012)

1,037,480

897,190

10,192
10,192
1,047,672

142,604
142,604
1,039,794

1,057,746

1,054,662(10,074)(14,867)AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2013

(3) Notes on the premise of a going concern
There are no applicable matters to be reported.
(4) Notes on significant changes in the amount of shareholders’ equity
There are no applicable matters to be reported.
(5) Segment Information, etc.
I Three months ended July 31, 2011 (May 1, 2011 to July 31, 2011)
1. Net sales and income (loss) by reportable segment
Reportable segments
Adjustment(Note) 1(Thousand yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Dispensing
pharmacybusiness

Drug andcosmetic store
business

Otherbusinesses

30,129,823

3,756,884

53,83833,940,547－

33,940,547

－

－

3,306

3,306

(3,306)－30,129,823
2,705,484

3,756,884
43,342

57,145(19,392)

33,943,854
2,729,434(3,306)(455,667)

33,940,547
2,273,766

Total

Net sales(1) Sales to externalcustomers(2) Intersegment sales
and transfers
Total
Segment income (loss)
Notes:

1. The adjustment of ¥455,667 thousand to segment income (loss) includes ¥416,143 thousand in corporate
expenses, ¥17,170 thousand in losses that are not allocated to reportable segments, and ¥22,353 thousand ineliminations due to intersegment transactions.
Overall group expenses consist mainly of expenses associated with the administrative divisions of the parent
company, such as general affairs and accounting divisions.
2. Segment income (loss) is adjusted with the ordinary income 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.
II Three months ended July 31, 2012 (May 1, 2012 to July 31, 2012)
1. Net sales and income (loss) by reportable segment
Reportable segments
Adjustment(Note) 1(Thousand yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Dispensing
pharmacybusiness

Drug andcosmetic store
business

Otherbusinesses

31,987,482

4,153,567

116,668

36,257,718－

36,257,718

－

－

3,306

3,306

(3,306)－31,987,482
2,846,777

4,153,567
58,355

119,975(94,521)

36,261,025
2,810,611(3,306)(482,386)

36,257,718
2,328,225

Total

Net sales(1) Sales to externalcustomers(2) Intersegment sales
and transfers
Total
Segment income (loss)
Notes:

1. The adjustment of ¥482,386 thousand to segment income (loss) includes ¥455,820 thousand in corporate
expenses, ¥5,287 thousand in losses that are not allocated to reportable segments, and ¥21,277 thousand ineliminations due to intersegment transactions.
Overall group expenses consist mainly of expenses associated with the administrative divisions of the parent
company, such as general affairs and accounting divisions.
2. Segment income (loss) is adjusted with the ordinary income of quarterly consolidated statements of income.
8

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2013

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