Summary of Financial Statements for Fiscal Year Ended April 2019
June 4 2019
AIN HOLDINGS INC.
First Section of Tokyo Stock Exchange and Sapporo Securities Exchange
9627
URL: https://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 30, 2019
Date of scheduled payment of dividends:
July 31, 2019
Date of filing securities report:
July 31, 2019
Supplementary documents for this summary of financial statements: Yes (Supplementary materials are disclosed on theName of listed company:
Exchange listed on:
Code number:
Representative:
Inquiries:

Company’s website appropriately as the financial
statements.)

Explanation meeting for financial results:

Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen.)

1. Consolidated results for the fiscal year ended April 2019 (from May 1, 2018 to April 30, 2019)(Percentage figures show year-on-year changes.)(1) Consolidated operating results
Net salesYear ended April 30, 2019Year ended April 30, 2018

Operating income

Profit attributable toowners of parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

275,596
268,3852.7
8.2

16,067
19,622(18.1)
34.7

16,637
20,129(17.3)
33.5

9,029
10,567(14.6)
32.9(Note) Comprehensive income:Year ended April 30, 2019: ¥8,960 million (-13.6%)
Year ended April 30, 2018: ¥10,376 million (+27.7%)
Earnings per
Diluted earnings
Ordinary income
Return on equity
share
per share
to total assets
Yen

Yen

254.87310.08Year ended April 30, 2019Year ended April 30, 2018%––

Operating income
to net sales

%

9.0
13.5

%

8.9
11.9

(Reference) Equity in earnings of affiliates: Year ended April 30, 2019: ¥ – million, Year ended April 30, 2018: ¥ – million(2) Consolidated financial position
Total assets

Net assets

Million yen

Million yen

189,021
183,380

As of April 30, 2019
As of April 30, 2018

(Reference) Equity capital: As of April 30, 2019: ¥103,855 million

Shareholders’ equity
ratio

Net assets per share

54.9
52.7

2,931.48
2,729.44%

103,922
96,733

Cash flows frominvesting activities

Million yen
Year ended April 30, 2018

2. Dividends

Year ended April 30, 2018Year ended April 30, 2019Year ending April 30, 2020
(forecast)

Cash flows fromfinancing activities

Million yen

14,78821,656

Year ended April 30, 2019

Yen

As of April 30, 2018: ¥96,697 million(3) Consolidated cash flows
Cash flows fromoperating activities

5.8
7.3

Million yen(19,985)(5,281)

Cash and cash
equivalents
at end of year

Million yen(10,681)
17,623

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

Annual

Yen

–
–

Yen

0.00
0.00

Yen

–
–

Yen

50.00
55.00

Yen

50.00
55.00

–

0.00

–

55.00

55.00

Total
dividends(annual)Million yen

1,771
1,948

47,49563,233

Dividends
payout ratio

Dividends on
net assets

16.1
21.6

2.2
1.9

(consolidated)%

19.2(consolidated)%3. Consolidated financial forecast for the fiscal year ending April 30, 2020 (from May 1, 2019 to April 30, 2020)
Net salesFirst half
Full year

Operating income

Million yen%

Million yen%

144,050
300,330

9.3
9.0

8,500
18,70026.3
16.4(Percentage figures show year-on-year changes.)
Net income
Ordinary income
Net income
per share
Million yen%
Million yen
%
Yen

8,750
19,200

24.7
15.4

4,640
10,13027.5
12.2

130.97285.94* 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, 2019
stock):
2) Number of shares held in
As of April 30, 2019
treasury:
3) Average number of
Fiscal year endedApril 30, 2019
shares outstanding:

35,428,212 shares As of April 30, 201835,428,212 shares

728 shares As of April 30, 2018688 sharesFiscal year ended

35,427,497 shares April 30, 2018

34,079,508 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(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.
(Change in monetary unit)
Amounts for items listed in the consolidated financial statements and for other items in the statements have been shown using thousand
yen units. However, effective from the fiscal year under review, thousand yen units have been replaced with million yen units.

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2019
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(Notes on the premise of a going concern) ........................................................................................................................ 14(Changes in presentation of financial statements) ............................................................................................................ 14(Segment Information, etc.) ................................................................................................................................................ 14(Per-share information.) ..................................................................................................................................................... 18(Important subsequent events)........................................................................................................................................... 18-1-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2019

1. Operating Results and Other(1) Overview of operating results for the current fiscal year
During the fiscal year ended April 30, 2019, 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.
In addition, as part of promoting work style reforms, the Group has decided to implement a new system thatallows employees to select their prescribed working hours. The new system, which will come into effect from
April 2020, is designed to create working environments better suited to the lifestyles of each employee. Goingforward, the Group will continue to put in place systems that promote work style reforms in line with theincreasingly diverse lifestyles and values of employees, not only their parenting and nursing care commitments.
For the fiscal year under review, net sales rose 2.7% year on year to ¥275,596 million, operating income
decreased 18.1% to ¥16,067 million, ordinary income declined 17.3% to ¥16,637 million and profit attributableto owners of parent decreased 14.6% year on year to ¥9,029 million.
(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 257 new pharmacist graduates joining the Group in April 2019.
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 continued to overhaul dispensing pharmacy operations and pushahead with business expansion by opening new dispensing pharmacies and using M&A deals, including
making two companies subsidiaries of the Group, KOM MEDICAL INC. (Sanjo, Niigata Prefecture) and
TSUCHIYA YAKUHIN INC. (Nagano, Nagano Prefecture).
During the fiscal year under review, the dispensing pharmacy business reported sales of ¥245,003 million,
up 2.7% year on year, and segment income of ¥18,331 million, down 19.1%.
During the same period, the Group opened 157 new dispensing pharmacies, including those acquired
through M&A deals, and closed 54 pharmacies, resulting in a total of 1,132.
(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 that backdrop, the Group continued to open ainz & tulpe cosmetic and drug stores in the Tokyo
metropolitan area and resumed its store opening program in the Kansai area. In addition, the Group worked tomake stores more appealing by refurbishing existing stores and strengthening merchandise lineups,
particularly cosmetic and drug products. As a result, sales from existing stores increased year on year, while-2-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2019

sales from stores opened in the previous fiscal year made a significant contribution to sales. Earnings also
improved, supported by active efforts to develop LIPS and HIPS, cocodecica and other original brands and byan overhaul of procurement activities in the previous year.
As a result, for the fiscal year under review, the cosmetic and drug store business reported sales and profit
growth with sales rising 4.5% year on year to ¥25,210 million and segment income increasing 48.0% to ¥972
million.
During the same period, the Group opened ainz & tulpe stores: ainz & tulpe HIGASHI IKEBUKURO (Toshima
Ward, Tokyo), ainz & tulpe olinas KINSHICHO (Sumida Ward, Tokyo), ainz & tulpe SHIBUYA KOEN DORI
(Shibuya Ward, Tokyo) , ainz & tulpe SOKA VARIE (Soka, Saitama Prefecture), ainz & tulpe FUCHU FORIS(Fuchu, Tokyo), ainz & tulpe ABENO Hoop (Abeno Ward, Osaka) and ainz & tulpe UMEDA HEP FIVE (Kita
Ward, Osaka) and closed one store, resulting in a total of 54 cosmetic and drug stores at the end of the fiscal
year.
(Other businesses)
Net sales from other businesses decreased 4.3% year on year to ¥5,382 million and segment loss was ¥165
million compared with the loss of ¥1,164 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 increased by ¥5,641 million from the end of theprevious fiscal year to ¥189,021 million. That mainly reflected a decline in cash on hand and in banks due to therepayment of loans and income taxes paid, which outweighed an increase in fixed assets such as inventories,
land and buildings, as well as goodwill, due to new store openings and M&A.
The balance of liabilities at the end of the fiscal year under review decreased by ¥1,547 million to ¥85,099
million.
The balance of short- term and long-term debts decreased by ¥6,671 million to ¥11,556 million.
Total net assets increased by ¥7,188 million to ¥103,922 million and the shareholders’ equity ratio increased
2.2 percentage points to 54.9%.

(3) Overview of cash flows for the current fiscal year
In the fiscal year under review, cash on hand and in banks (“cash”) decreased ¥15,737 million year on year to¥47,495 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 ¥14,788 million, compared with net cash provided of ¥21,656
million in the previous fiscal year.
The main items that were positive for cash flow were income before income taxes of ¥15,624 million, as well
as depreciation and amortization of ¥3,903 million and amortization of goodwill of ¥4,183 million related tobusiness expansion through new store openings and M&A.
The main item negative for cash flow was income taxes paid of ¥9,341 million.
(Cash flows from investing activities)
Net cash used in investing activities was ¥19,985 million, compared with net cash used of ¥5,281 million in
the previous fiscal year.
This mainly reflected payments of ¥13,246 million for purchases of shares in subsidiaries due to changes in-3-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2019the scope of consolidation related to shares acquired in 12 companies through M&A deals, ¥3,761 million forpurchases of property, plant and equipment related to the opening of new cosmetic and drug stores anddispensing pharmacies, and ¥4,469 million for payments of leasehold and guarantee deposits.
(Cash flows from financing activities)
Net cash used in financing activities was ¥10,681 million, compared with net cash provided of ¥17,623 million
in the previous fiscal year.
The main cash outflows were net repayment of ¥8,369 million from short-term and long-term debt repayment
and proceeds, and ¥1,771 million for cash dividends paid.
Changes in the Group’s cash flow indicators are shown below.
Year ended April
30, 2016

Year ended April
30, 2017

Year ended April
30, 2018

Year ended April
30, 2019

Shareholders’ equity ratio (%)

38.1

38.4

52.7

54.9

Equity ratio based on market value (%)

121.0

156.6

141.0

165.7

Debt redemption term (years)

1.0

1.5

0.9

0.8

Interest coverage ratio (times)

226.6

128.0

184.5

117.8

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, 2020, the dispensing pharmacy business will continue to develop new
dispensing pharmacies and actively seek M&A opportunities. In addition, the cosmetic and drug store businesswill work to expand its operations by continuing to open ainz & tulpe cosmetic and drug stores in the Tokyo
metropolitan area and by implementing measures to raise brand visibility in urban markets.
Based on these initiatives, the Group forecasts net sales for the fiscal year ending April 30, 2020 of ¥300,330
million, up 9.0% year on year, ordinary income of ¥19,200 million, up 15.4%, and profit attributable to owners ofparent of ¥10,130 million, up 12.2%.

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, 2019

3. Consolidated Financial Statements(1) Consolidated balance sheet

AssetsCurrent assets
Cash on hand and in banks
Notes and accounts receivable
Merchandise
Supplies
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-(Million yen)Previous fiscal year
(As of April 30, 2018)

Current fiscal year
(As of April 30, 2019)

63,77910,466
9,372
208
641
7,751
2,470
(131)
94,55748,091
12,771
12,673
225
236
8,438
3,012
(2)
85,44628,310(13,376)
14,934
10,041
118
10,493(7,734)
2,759
27,85331,676(15,323)
16,352
10,394283
11,911(8,755)
3,155
30,18638,011
2,121
40,13245,2492,327
47,577

2,375
789
3,772
9
11,3392,985(540)
20,732
88,718

1,795
1,351
4,284
15
15,133
4,853(1,683)25,751
103,515103103
183,38059
59
189,021

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2019

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-(Million yen)Previous fiscal year
(As of April 30, 2018)

Current fiscal year
(As of April 30, 2019)

38,728
6,717
4,947
12,675
1,911
16
420
6
4,525
69,95044,794
5,571
3,261
12,737
2,139
17
450
–
4,772
73,744

11,511
632
2,625
1,927
16,696
86,646

5,985
401
2,977
1,989
11,35585,09921,89420,50054,268(1)
96,662

21,89420,50061,526(2)
103,920

84
(50)
34
36
96,733
183,380

(6)
(59)
(65)
67
103,922
189,021

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2019(2) Consolidated statement of income and comprehensive income
Consolidated statement of income(Million 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 to emplyees
Provision for bonuses to directors
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, 2017
to April 30, 2018)268,385
220,392
47,993Current fiscal year
(May 1, 2018
to April 30, 2019)
275,596
230,233
45,363

2,719
1,019
5,267
132
554
16
117
417
1,854
806
85
4,205
646
3,898
1,181
5,448
28,37019,622

2,330
1,044
5,212
1
584
17
195
449
1,946
845
78
4,473
702
4,106
1,400
5,904
29,295
16,067

65
36
136
61
181
19
201
70
345
1,117

70
39
17
38
274
48
158
68
345
1,061

117
71
88
200
131
610
20,129

125
71
95
24
173
490
16,637

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2019
(Million yen)Previous fiscal year
(May 1, 2017
to April 30, 2018)
Extraordinary income
Gains on sales of fixed assets
Gains on sales of investments in securities
Gain on transfer of business
Surrender value of insurance
Gain on step acquisitions
Gain on the sale of investments
Other extraordinary income
Total extraordinary income
Extraordinary losses
Losses on disposal and sales of fixed assets
Impairment losses on fixed assets
Directors’ retirement benefits
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, 2018
to April 30, 2019)

76
8
59
31
49
–
30
255

38
7
312
23
–
550
128
1,061

624
1,175
127
440
164
2,532
17,852
7,863
(540)
7,322
10,530(37)
10,567

695
766
–
–
613
2,074
15,624
6,794
(230)
6,564
9,060
30
9,029

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2019

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, 2017
to April 30, 2018)
10,530(Million yen)
Current fiscal year
(May 1, 2018
to April 30, 2019)
9,060

(1)
(152)
(153)
10,376
10,413

(91)
(8)
(99)
8,960
8,929

(37)

30

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2019(3) Consolidated statement of changes in net assets
Previous fiscal year (May 1, 2017 to April 30, 2018)(Million yen)
Shareholders’ equity
Common stock
Balance at the beginning ofcurrent year

Capital surplus

8,682

6,367

13,212

13,212Retained earnings

Total shareholders’equityTreasury stock

45,286(419)

59,918Net changes during the year
Issuance of new shares

26,424

Cash dividends paid

(1,585)(1,585)

Profit attributable toowners of parent

10,567

10,567

Acquisition of treasury
stock
Disposal of treasury stock

921

(0)

(0)

418

1,339

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

13,212

14,1338,982

417

36,744

Balance at the end ofcurrent year

21,89420,50054,268(1)

96,662

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

Remeasurements ofdefined benefit plans

86

101

Total accumulated othercomprehensive income(loss)

Non-controllinginterests

187

73

Total net
assets60,178Net changes during the year
Issuance of new shares

26,424

Cash dividends paid

(1,585)

Profit attributable toowners of parent

10,567

Acquisition of treasury
stock

(0)

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

1,339
(1)

(152)

(153)

(37)

(190)

Total changes during the
year

(1)

(152)

(153)

(37)

36,554

Balance at the end ofcurrent year

84

(50)

34

36

96,733- 10 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2019

Current fiscal year (May 1, 2018 to April 30, 2019)(Million yen)
Shareholders’ equity
Common stock
Balance at the beginning ofcurrent year

Capital surplus

21,894Retained earnings

20,500Total shareholders’equityTreasury stock

54,268(1)

96,662

Net changes during the year
Cash dividends paid

(1,771)(1,771)

Profit attributable toowners of parent

9,029

9,029

Acquisition of treasury
stock

(0)

(0)

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

–

–

7,257

(0)

7,257

21,89420,50061,526(2)

103,920

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

Remeasurements ofdefined benefit plans

84

(50)

Total accumulated othercomprehensive income(loss)

Non-controllinginterests

34

36

Total net
assets96,733

Net changes during the year
Cash dividends paid

(1,771)

Profit attributable toowners of parent

9,029

Acquisition of treasury
stock

(0)

Net change in items otherthan shareholders’ equity

(91)

(8)

(99)

30

(68)

Total changes during the
year

(91)

(8)

(99)

30

7,188

Balance at the end ofcurrent year

(6)

(59)

(65)

67

103,922- 11 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2019(4) Consolidated statement of cash flows
Previous fiscal year
(May 1, 2017
to April 30, 2018)
Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Amortization of goodwill
Loss on sales of shares of subsidiaries and associates
Impairment losses on fixed assets
Loss on valuation of investments in capitalGain on the sale of investments
Gain 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
Loss (gain) on valuation of investment securities
Losses on disposal and sales of fixed assets(Increase) decrease in accounts receivable
Decrease in inventories
Decrease (increase) in other assets
Decrease (increase) in other accounts receivable
Decrease in accounts payable(Decrease) increase in other liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities- 12 -

17,852
3,596
3,937
–
1,175
440
–
(49)
313
10
157
(59)
(7)
0
0
(101)
117
(135)
(19)
(2)
–
548
(25)
2,278
64
1,685
(1,076)(3,544)–
27,157104(117)(5,487)21,656(Million yen)

Current fiscal year
(May 1, 2018
to April 30, 2019)15,624
3,903
4,183
149
766
–
(550)
–
(155)
29
186
(312)
(6)
152
1
(109)
125
(17)
(48)
0
179
656
843
(2,054)
335
(407)
1,685
(942)
(72)
24,146109(125)(9,341)
14,788AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2019
(Million yen)Previous fiscal year
(May 1, 2017
to April 30, 2018)
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
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Increase in other investments
Proceeds from withdrawal of time deposits
Payments for time deposits
Other, net
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 (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Increase in cash and cash equivalents resulting frommerger of consolidated subsidiaries
Cash and cash equivalents at end of the year

- 13 -

Current fiscal year
(May 1, 2018
to April 30, 2019)(3,134)(3,761)

421
(50)
84

783
(28)
21

(1,310)(13,246)

(404)
482
(1)
1
(574)
0
(1,369)

(118)
626
(1)
850
(1,228)15(4,469)

718

808

(217)
152
(79)
–
(5,281)

(820)
616
(47)
13
(19,985)(119)–(7,656)(646)
26,292(0)
1,339(1,585)
17,62333,99829,234(1,599)0(6,771)
(539)
–
(0)
–
(1,771)(10,681)(15,878)
63,233–

140

63,23347,495AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2019(5) Notes to Consolidated statements(Notes on the premise of a going concern)
There are no applicable matters to be reported.
(Changes in presentation of financial statements)(Changes related to application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)
Effective from the start of the consolidated fiscal year under review, the Company has applied “Partial
Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018).
As a result, the Company now classifies “deferred tax assets” as “investments and other assets,” and“deferred tax liabilities” as “long-term liabilities.”
As a result, ¥1,611 million of “deferred tax assets” under “current assets” and ¥55 million of ¥4,810 million“other” under “current liabilities” on the consolidated balance sheet for the previous fiscal year have been
included in ¥3,772 million of “deferred tax assets” under “investments and other assets.” Also ¥229 million of¥4,810 million “other” under “current liabilities” has been included in ¥1,927 million of “other” under “long-term
liabilities.” “Other” under “current liabilities” is presented ¥4,525 million.
Compared with the previous fiscal year, before the application of the new standard, total assets havedeclined by ¥55 million, as deferred tax assets and deferred tax liabilities arising from the same taxable entity
have been offset on the balance sheets.
(Consolidated statement of cash flows)“Payments of leasehold and guarantee deposits" and “proceeds from refund of leasehold and guarantee
deposits” which were included in “decrease (increase) in other investments” under “cash flows from investing
activities” in the previous fiscal year is now separately classified and stated since significance of the amountincreased from the consolidated fiscal year under review.
As a result, a decrease of ¥868 million disclosed in “decrease (increase) in other investments” of “cash flows
from investing activities” in the consolidated statement of cash flows for the previous fiscal year wasreclassified into a decrease of ¥1,369millon in “payments of leasehold and guarantee deposits”, an increaseof ¥718 million in “proceeds from refund of leasehold and guarantee deposits”, and a decrease of ¥ 217
million in “decrease (increase) in other investments.”(Segment Information, etc.)
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.
- 14 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2019

Accordingly, the reportable segments of the Group are composed of three units, namely, dispensing
pharmacy business, cosmetic and drug store business and other businesses.
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.
3. Sales, income (loss), assets, liabilities and other items for each reportable segment
I. Previous fiscal year (May 1, 2017 to April 30, 2018)(Million yen)
Reportable segments
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

238,645

24,117

5,623

Total

Adjustments(Note) 1

Consolidated(Note) 2–

268,385

Sales
Sales to third parties
Intersegment sales

268,385

–

–

278

278

(278)

–

Total sales

238,645

24,117

5,901

268,664(278)

268,385

Segment income (loss)

22,668657(1,164)

22,161(2,031)

20,129Segment assets

155,516

9,943

10,016

175,476

7,903

183,380

Depreciation
and amortization

2,229

334

387

2,951

191

3,143

Amortization of
goodwill

3,910

–

27

3,937

–

3,937

Impairment losses

803

128

243

1,175

–

1,175

Increase of tangible
and intangible assets

1,523

931

1,183

3,637

305

3,942

Other

Notes:

1. Segment income (loss) in “Adjustments” totaling (¥2,031 million) includes ¥3,783 million in overall group expenses,(¥1,723 million) in (income) losses that may not be allocated to the reporting segments, and (¥28 million) inelimination 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 million consist mainly of assets associated with the administrative
divisions of the parent company and the difference in elimination of intersegment transactions.
2. Segment income (loss) 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, 2019
II. Current fiscal year (May 1, 2018 to April 30, 2019)(Million yen)
Reportable segments
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

Total

Adjustments(Note) 1

Consolidated(Note) 2

Sales
Sales to third parties

245,003

25,2105,382

275,596–

275,596

Intersegment sales

–

–

126

126

(126)

–

Total sales

245,003

25,2105,508

275,722(126)

275,596

Segment income (loss)

18,331972(165)

19,138(2,500)

16,637

Segment assets

170,170

11,255

9,471

190,897(1,875)

189,021

Depreciation
and amortization

2,538

315

305

3,159

218

3,378

Amortization of
goodwill

4,165

–

18

4,183

–

4,183

Impairment losses

431

334

–

766

–

766

Increase of tangible
and intangible assets

3,137

1,709

238

5,085

363

5,449

Other

Notes:

1. Segment income (loss) in “Adjustments” totaling (¥2,500 million) includes ¥4,280 million in overall group expenses,(¥1,787 million) in (income) losses that may not be allocated to the reporting segments, and ¥7 million inelimination 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 (¥1,875 million) consist mainly of assets associated with theadministrative divisions of the parent company and the difference in elimination of intersegment transactions.
2. Segment income (loss) 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, 2019

Related information
Previous 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.
Current fiscal year (May 1, 2018 to April 30, 2019)
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.
Information regarding impairment losses of fixed assets for each reported segment
Previous fiscal year (May 1, 2017 to April 30, 2018)
This disclosure has been omitted because the same information is disclosed under Segment Information.
Current fiscal year (May 1, 2018 to April 30, 2019)
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, 2019

Information about goodwill amortization amount and year-end balance for each reportable segment
Previous fiscal year (May 1, 2017 to April 30, 2018)(Million yen)
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Amortization of current fiscal year

3,910

–

27

–

3,937

Balance at the end of current fiscal year

37,870–140–

38,011Other
businesses

Corporate /Eliminations

Total

Current fiscal year (May 1, 2018 to April 30, 2019)(Million yen)
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Amortization of current fiscal year

4,165

–

18

–

4,183

Balance at the end of current fiscal year

45,127–122–

45,249Other
businesses

Corporate /Eliminations

Total

Information about gains on bargain purchase for each reported segment
Previous fiscal year (May 1, 2017 to April 30, 2018)
There are no applicable matters to be reported.
Current fiscal year (May 1, 2018 to April 30, 2019)
There are no applicable matters to be reported.
(Per-share information)
Previous fiscal year
(May 1, 2017 to April 30, 2018)

Current fiscal year
(May 1, 2018 to April 30, 2019)

Net assets per share

2,729.44 yen

2,931.48 yen

Earnings per share

310.08 yen

254.87 yen

Note: 1. Diluted earnings per share is not mentioned since dilutive shares do not exist.
2.The basis of calculation of net assets per share and earnings per share is as follows.
Previous fiscal year
Current fiscal year
(May 1, 2017 to April 30, 2018)(May 1, 2018 to April 30, 2019)
Profit attributable to owners of parent(million yen)

10,567

9,029

–

–

Net income attributable to owners of theparent pertaining to common stock(million yen)

10,567

9,029

Average number of shares outstanding(shares)

34,079,508

35,427,497

Amount not attributable to ordinary
shareholders (million yen)

(Important subsequent events)
There are no applicable matters to be reported.

- 18 -