Summary of Financial Statements for Fiscal Year Ended April 2022
【Japan GAAP】(Consolidated)

June 3, 2022

AIN HOLDINGS INC.
Prime Market 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 28, 2022
Date of scheduled payment of dividends:
July 29, 2022
Date of filing securities report:
July 29, 2022
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 2022 (from May 1, 2021 to April 30, 2022)(Percentage figures show year-on-year changes.)(1) Consolidated operating results
Net salesYear ended April 30, 2022
Year ended April 30, 2021

Operating profit

Profit attributable toowners of parent

Ordinary profit

Million yen%

Million yen%

Million yen%

Million yen%

316,247
297,305

6.4
1.6

15,13910,93238.5(32.0)

16,041
12,64926.8(24.8)

7,092
6,697

5.9
(27.0)(Note) Comprehensive income:Year ended April 30, 2022: ¥7,126 million (+5.1%)
Year ended April 30, 2021: ¥6,783 million (-24.9%)
Earnings per
Diluted earnings
Ordinary profit to
Return on equity
share
per share
total assets
Yen

Yen

201.47189.04

Year ended April 30, 2022
Year ended April 30, 2021%––

Operating profit
to net sales

%

6.0
5.9

%

7.7
6.4

4.8
3.7

(Reference) Share of profit of entities accounted for using equity method: Year ended April 30, 2022: ¥2 million
Year ended April 30, 2021: ¥10 million(2) Consolidated financial position
Total assets

Net assets

Million yen

Million yen

212,461
203,662

As of April 30, 2022
As of April 30, 2021

Shareholders’ equity
ratio%

119,010
115,837(Reference) Equity capital: As of April 30, 2022: ¥118,923 million

Year ended April 30, 2021

2. Dividends

Year ended April 30, 2021
Year ended April 30, 2022
Year ending April 30, 2023
(forecast)

Cash and cash
equivalents
at end of year

Cash flows fromfinancing activities

Million yen

26,156
14,9283,385.51
3,267.49

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

Cash flows frominvesting activities

Million yen
Year ended April 30, 2022

Yen

56.0
56.8

(3) Consolidated cash flows
Cash flows fromoperating activities

Net assets per share

Million yen(13,943)(9,493)

Million yen(7,753)
3,643

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

Annual

Yen

–
–

Yen

0.00
0.00

Yen

–
–

Yen

55.00
55.00

Yen

55.00
55.00

–

0.00

–

60.00

60.00

Total
dividends(annual)Million yen

1,948
1,932

59,47055,009Dividends
payout ratio

Dividends on
net assets

29.1
27.3

1.7
1.7

(consolidated)%

19.2(consolidated)%3. Consolidated financial forecast for the fiscal year ending April 30, 2023 (from May 1, 2022 to April 30, 2023)
Net salesFirst half
Full year(Percentage figures show year-on-year changes.)
Earnings
Ordinary profit
Net income
per share
Million yen%
Million yen%
Yen

Operating profit

Million yen%

Million yen%

172,833
363,000

13.0
14.8

8,485
20,000

46.9
32.1

8,732
20,500

42.5
27.8

4,497
11,00034.7
55.1

128.02313.15* Notes(1) Major changes in subsidiaries during the fiscal year (changes in specified subsidiaries resulting in change 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.: Yes
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, 2022
stock):
2) Number of shares held in
As of April 30, 2022
treasury:
3) Average number of
Fiscal year endedApril 30, 2022
shares outstanding:

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

35,428,212 shares

300,911 shares As of April 30, 2021

891 sharesFiscal year ended

35,202,302 shares April 30, 2021

35,427,408 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.

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022
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 ........................................................................................................................................................... 5
2. Basic Stance on Selection of Accounting Standards......................................................................................................... 5
3. Consolidated Financial Statements and Major Notes........................................................................................................ 6(1) Consolidated balance sheet ....................................................................................................................................... 6(2) Consolidated statement of income and comprehensive income ................................................................................... 8
Consolidated statement of income.............................................................................................................................. 8
Consolidated statement of comprehensive income ................................................................................................... 10(3) Consolidated statement of changes in net assets...................................................................................................... 11(4) Consolidated statement of cash flows....................................................................................................................... 13(5) Notes to consolidated statements............................................................................................................................. 15(Notes on the premise of a going concern).................................................................................................................... 15(Notes on significant changes in the amount of shareholders’ equity)............................................................................. 15(Changes in accounting policies) .................................................................................................................................. 15(Changes in presentation of financial statements) ......................................................................................................... 16(Segment information, etc.) .......................................................................................................................................... 17(Per-share information) ................................................................................................................................................ 21(Material subsequent events) ....................................................................................................................................... 21-1-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

1. Operating Results and Other(1) Overview of operating results for the current fiscal year
During the current fiscal year (May 1, 2021 to April 30, 2022), the Japanese economy continued to facechallenging conditions due to the COVID-19 pandemic. Although there were signs of a pickup in consumer
spending, the outlook remained uncertain.
In this economic environment, the AIN HOLDINGS Group (the Group) rigorously implemented measures toprevent the spread of COVID-19 and worked to provide healthcare and retail services, in line with its mission to“contribute to local healthcare” and “provide beauty and happiness” – two of the Group’s materiality issues. To
help solve various social issues through its business activities, AIN HOLDINGS aims to be a company that“people welcome to their communities.”
In March 2022, the Group received certification as an Outstanding Health and Productivity Management
Organization for 2022 (large enterprise category) under a program run jointly by the Ministry of Economy, Tradeand Industry (METI) and Nippon Kenko Kaigi that recognizes leading companies in health and productivity
management. To “ensure a sound management base,” one of its other materiality issues, the Group is working
to improve the health of employees to reduce the staff turnover rate and lift productivity by harnessing theperformance of every employee.
Recognizing the importance of creating a sustainable society amid the growing impact of climate change, theGroup is tackling another materiality issue, “protect the environment and reduce environmental impact.” In April
2022, the Group endorsed the recommendations of the TCFD* to improve information disclosure for all
stakeholders. The Group also joined the TCFD Consortium, a group of domestic companies, financial institutions
and other bodies that have endorsed and are working to implement the TCFD recommendations. Going forward,
the Group will disclose appropriate information using the TCFD recommendations and explore the best
approach for dialogue with stakeholders, aiming to increase corporate value while building mutual trust withstakeholders.
Through businesses that support human health and beauty, the Group will work to realize sustainability
management in order to generate sustainable growth and create social, environmental and economic value.
For the fiscal year under review, net sales rose 6.4% year on year to ¥316,247 million, operating profit
increased 38.5% to ¥15,139 million, ordinary profit increased 26.8% to ¥16,041 million and profit attributable toowners of parent increased 5.9% year on year to ¥7,092 million.
*Task Force on Climate-Related Financial Disclosures, established by the Financial Stability Board (FSB) at the request of the G20 financeministers and central bank governors. The task force published its recommendations in its final report in 2017.

(Dispensing pharmacy business)
In February 2022, the Group launched its official Ain Group dispensing pharmacy app, “Anytime AIN
Pharmacy.” With the app, users can video call or message primary care pharmacists for advice and accessonline pharmaceutical treatment guidance services (bookings, medication usage advice via video calls,
pharmaceutical deliveries, credit card payments). By providing services to meet the increasingly diverse needsof patient, such as by responding to the start of the repeat prescription in April, the easing of regulations on
online pharmaceutical treatment guidance, and the expected start of digital prescriptions, we aim to create anenvironment that allows every patient to easily access pharmaceutical treatments in their local community.
In business development, the Group is targeting further business expansion through a strategy of actively
opening large pharmacies and using M&A deals that emphasize investment returns, while also improving
pharmacy operating efficiency.
The business continues to be impacted by the COVID-19 pandemic, but sales and profits both increased year
on year, supported by a recovery in the number of prescriptions and steady growth in sales at dispensing
pharmacies opened in the previous fiscal year.

-2-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

As a result, for the fiscal year under review, the dispensing pharmacy business reported sales of ¥283,111
million, up 7.6% year on year, and segment income of ¥25,082 million, up 19.7%.
During the fiscal year, the Group opened a total of 49 dispensing pharmacies, including those acquired
through M&A deals, and closed 10 dispensing pharmacies and sold 5, resulting in a total of 1,099.
(Cosmetic and drug store business)
The cosmetic and drug store business continued to face a challenging market environment due to the impactof the COVID-19 pandemic. The Group continued to create appealing retail displays by strengthening productlineups. Also, the Group pushed ahead with store openings in locations with good prospects for profitability andoptimized costs.
The business opened its third store in the Fukuoka area in March 2022, AINZ & TULPE FUKUOKA TENJINNISHI DORI, and its fourth store in the same area the following month, AINZ & TULPE LaLaport FUKUOKA.
The AINZ & TULPE FUKUOKA TENJIN-NISHI DORI store is steadily becoming the flagship store in the area,
helping to raise the visibility of the AINZ & TULPE brand in Fukuoka.
However, the cosmetic and drug store business reported sales of ¥20,558 million, up 5.9% year on year, anda segment loss of ¥1,764 million, compared with a segment loss of ¥1,999 million in the previous fiscal year,
which included an ongoing impact from the COVID-19 pandemic.
During the same period, the Group opened 12 AINZ & TULPE stores and closed three stores, resulting in a
total of 78 cosmetic and drug stores at the end of the fiscal year.
(Other businesses)
Net sales from other businesses declined 14.9% year on year to ¥12,677 million and the segment loss
narrowed to ¥146 million from ¥721 million in the previous fiscal year, mainly reflecting efficiency improvements
in store operations at retail stores acquired in March 2020.

(2) Overview of financial position for the current fiscal year
The balance of total assets at the end of the fiscal year increased ¥8,798 million from the end of the previous
fiscal year to ¥212,461 million. This mainly reflected declines for notes and accounts receivable - trade and for
goodwill, outweighed by increases for cash and deposits and for leasehold and guarantee deposits.
The balance of liabilities at the end of the fiscal year under review increased by ¥5,625 million to ¥93,450
million.
The balance of short- term and long-term debts decreased by ¥3,508 million to ¥8,458 million.
Total net assets increased by ¥3,173 million to ¥119,010 million and the shareholders’ equity ratio decreased
0.8 percentage points to 56.0%.

(3) Overview of cash flows for the current fiscal year
In the fiscal year under review, cash on hand and in banks (“cash”) increased ¥4,460 million year on year to¥59,470 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 ¥26,156 million, compared with net cash provided of ¥14,928
million in the previous fiscal year.
The main items that were positive for cash flow were income before income taxes of ¥13,125 million, as well
as depreciation and amortization of ¥4,792 million and amortization of goodwill of ¥4,133 million related to-3-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

business expansion through new store openings and M&A.
The main item negative for cash flow was income taxes paid of ¥4,396 million.
(Cash flows from investing activities)
Net cash used in investing activities was ¥13,943 million, compared with net cash used of ¥9,493 million in
the previous fiscal year.
This mainly reflected payments of ¥2,322 million for purchases of shares in subsidiaries resulting in change
in scope of consolidation related to shares acquired in four companies through M&A deals, ¥5,880 million forpurchases of property, plant and equipment related to the opening of new cosmetic and drug stores anddispensing pharmacies, ¥3,842 million for payments of leasehold and guarantee deposits and ¥3,186 million forincrease in investments and other assets.
(Cash flows from financing activities)
Net cash used in financing activities was ¥7,753 million, compared with net cash provided in ¥3,643 million in
the previous fiscal year.
The main items were net repayment of ¥3,548 million from short-term and long-term debt repayment andproceeds, ¥2,015 million of purchase of treasury shares, and ¥1,948 million for cash dividends paid.
Changes in the Group’s cash flow indicators are shown below.
Year ended April
30, 2019

Year ended April
30, 2020

Year ended April
30, 2021

Year ended April
30, 2022

Shareholders’ equity ratio (%)

54.9

57.3

56.8

56.0

Equity ratio based on market value (%)

165.7

110.4

105.6

96.6

Debt redemption term (years)

0.8

0.4

0.8

0.3

Interest coverage ratio (times)

117.8

276.8

334.7

671.8

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-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

(4) Future outlook
For the fiscal year ending April 30, 2023, we forecast net sales of ¥363,000 million (up 14.8% year on year),ordinary profit of ¥20,500 million (up 27.8%) and profit attributable to owners of parent of ¥11,000 million (up55.1%).
In the dispensing pharmacy business, Pharmacy Holdings Co. Ltd. which operates a chain of around 100
dispensing pharmacies, became a subsidiary in 2022. With the acquisition of Pharmacy Holdings, which has acorporate philosophy of “providing support for health in the community to help more people lead healthier lives,”
we will combine our mutual expertise to enhance patient services, increasing the Group’s corporate value as a
key part of community healthcare provision throughout Japan.
In the cosmetic and drug store business, we will continue to create attractive retail displays by strengthening
product lineups, improve the appeal of AINZ & TULPE stores, overhaul store opening strategies for each area
to ensure stores are opened in locations with good prospects for profitability, and optimize costs. We will also
continue to develop the business into a second key source of earnings after the dispensing pharmacy business.
In the fiscal year ending April 30, 2023, we anticipate a continued impact on earnings from the COVID-19
pandemic. However, at this stage, there are no clear indications of when the pandemic will be contained. If
conditions change dramatically, the Group will revise its forecasts as necessary and disclose them in a timely
manner.

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. The Group plans to appropriately address the adoption of International Financial
Reporting Standards (IFRS) while taking into account trends in Japan and overseas.

-5-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

3. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheet

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise
Supplies
Short-term loans receivable
Accounts receivable - other
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
LandConstruction in progress
Other property, plant and equipment
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans
Deferred tax assets
Net defined benefit asset
Leasehold and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-6-(Million yen)Previous fiscal year
(As of April 30, 2021)

Current fiscal year
(As of April 30, 2022)

55,271
13,47514,018
266
144
9,284
3,936
96,39859,729
10,11014,568222
306
11,832
3,995
100,765

32,561(16,290)
16,270
10,390638
10,017(7,087)2,930
30,22934,876(17,364)
17,5128,581
1,804
10,000(7,262)
2,737
30,63639,057
3,609
42,66636,352
4,866
41,219

2,697
422
4,415
60
20,3198,198(1,743)34,368107,264
203,662

2,503
196
5,319
20
22,785
10,309(1,294)
39,840111,696
212,461AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Income taxes payable
Deposits received
Provision for bonuses
Provision for bonuses for directors
Provision for point card certificatesContract liabilities
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease obligations
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation differences on available-for-sale securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive loss
Non-controlling interests
Total net assets
Total liabilities and net assets-7-(Million yen)Previous fiscal year
(As of April 30, 2021)

Current fiscal year
(As of April 30, 2022)

46,758
3,670
2,157
13,979
2,594
16
461
–
4,522
74,16050,756
2,643
4,391
15,415
2,713
18
–
544
5,321
81,805

8,297
37
3,329
2,000
13,66487,825

5,815
9
3,578
2,242
11,64593,45021,89420,50073,506(3)
115,899

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

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

(39)
(75)
(114)
86
119,010
212,461AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

(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 employees
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 profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodGains on investments in partnership
Commissions received
Real estate rental revenue
Gains on donations of fixed assets
Consignment income
Technical advisory fee
Subsidies for employment adjustment
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sales of receivables
Rental expenses on real estate
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary profit-8-

Previous fiscal year
(May 1, 2020
to April 30, 2021)
297,305
251,150
46,155Current fiscal year
(May 1, 2021
to April 30, 2022)
316,247
266,275
49,971

1,998
1,103
7,693
33
902
16
261
461
2,397
894
91
4,708
1,178
4,245
1,490
7,746
35,222
10,932

1,875
595
7,457
–
972
18
281
–
2,626
997
70
5,042
1,234
4,133
1,587
7,938
34,832
15,139

38
44

41
45

10

2

68
18
185
28
193
68
1,182
472
2,308

83
22
384
18
172
74
173
303
1,323

44
79
220
182
64
590
12,649

38
87
219
6
69
421
16,041AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022
(Million yen)Previous fiscal year
(May 1, 2020
to April 30, 2021)
Extraordinary income
Gain on sales of non-current assets
Gain on sale of business
Surrender value of insurance
Gain on sales of shares of subsidiaries and associates
Gain on step acquisitions
Other extraordinary income
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses on fixed assets
Loss on valuation of investment securities
Loss on temporary store closures
Loss on cancellation of rental contracts
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-9-

Current fiscal year
(May 1, 2021
to April 30, 2022)

19
408
53
111
–
31
624

200
13
5
–
131
55
406

410
804
37
52
56
145
1,506
11,767
5,251
(172)
5,079
6,687
(9)
6,697

329
2,302
116
–
493
80
3,322
13,125
6,925
(899)
6,025
7,100
8
7,092

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

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 gain
Total comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 10 -

Previous fiscal year
(May 1, 2020
to April 30, 2021)
6,687(Million yen)
Current fiscal year
(May 1, 2021
to April 30, 2022)
7,100

64
31
95
6,783
6,792

(26)
52
26
7,126
7,118

(9)

8

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

(3) Consolidated statement of changes in net assets
Previous fiscal year (May 1, 2020 to April 30, 2021)(Million yen)
Shareholders’ equity
Common stock
Balance at the beginning ofcurrent year

Capital surplus

21,894Retained earnings

20,500Total shareholders’equityTreasury stock

68,758(2)

111,151

Net changes during the year
Cash dividends paid

(1,948)(1,948)

Profit attributable toowners of parent

6,697

6,697

Acquisition of treasury
stock

(1)

(1)

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

–

–

4,748

(1)

4,747

21,89420,50073,506(3)

115,899

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

Remeasurements ofdefined benefit plans

(77)

(159)

Total accumulated othercomprehensive income(loss)

Non-controllinginterests

(236)

88

Total net
assets111,003

Net changes during the year
Cash dividends paid

(1,948)

Profit attributable toowners of parent

6,697

Acquisition of treasury
stock

(1)

Net change in items otherthan shareholders’ equity

64

31

95

(9)

85

Total changes during the
year

64

31

95

(9)

4,833

Balance at the end ofcurrent year

(12)

(128)

(141)

78

115,837- 11 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

Current fiscal year (May 1, 2021 to April 30, 2022)(Million yen)
Shareholders’ equity
Common stock
Balance at the beginning ofcurrent year

Capital surplus

21,894Retained earnings

20,50073,506

Cumulative effect ofaccounting change
Balance at the beginning ofcurrent year reflectingchanges in accounting
policies

Total shareholders’equityTreasury stock(3)

115,899

10

21,89420,5001073,517(3)

115,909

Net changes during the year
Cash dividends paid

(1,948)(1,948)

Profit attributable toowners of parent

7,092

7,092

Acquisition of treasurystock(2,015)(2,015)

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

–

–

5,143

(2,015)

3,128

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

119,038

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

Remeasurements ofdefined benefit plans

(12)

(128)

Total accumulated othercomprehensive income(loss)

Non-controllinginterests

(141)

78

Cumulative effect ofaccounting change
Balance at the beginning ofcurrent year reflectingchanges in accounting
policies

Total net
assets
115,837
10

(12)

(128)

(141)

78

115,847

Net changes during the year
Cash dividends paid

(1,948)

Profit attributable toowners of parent

7,092

Acquisition of treasurystock(2,015)

Net change in items otherthan shareholders’ equity

(26)

52

26

8

34

Total changes during the
year

(26)

52

26

8

3,162

Balance at the end ofcurrent year

(39)

(75)

(114)

86

119,010- 12 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

(4) Consolidated statement of cash flows

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Amortization of goodwill(Gain) loss on sales of shares of subsidiaries andassociates
Impairment losses on fixed assets
Increase (decrease) in allowance for doubtful accounts
Gain on step acquisitions
Decrease in provision for point card certificates
Increase in defined benefit liability
Increase in contract liabilities
Gain on transfer of business
Increase in allowance for bonuses to employees
Decrease in allowance for bonuses to directors
Interest and dividend income
Interest expenses
Share of profit of entities accounted for using equity
methodGains on investments in partnerships
Gains on donations of property, plant and equipment
Gains on sales of investments in securities
Loss on valuation of investment securities
Losses on disposal and sales of fixed assets
Decrease in accounts receivable(Increase) decrease in inventories
Increase in other assets
Increase in other accounts receivable
Increase (decrease) in accounts payable
Increase (decrease) in other liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities- 13 -

Previous fiscal year
(May 1, 2020
to April 30, 2021)(Million yen)

Current fiscal year
(May 1, 2021
to April 30, 2022)

11,767
4,243
4,436

13,125
4,792
4,133

(111)

–

804
210
–
(1)
304
–
(399)
249
(0)
(82)
44

2,302
(2)
(131)
–
364
105
(13)
109
2
(87)
38

(10)

(2)

(68)
(28)
(9)
37
391
138
1,172
(539)
(221)
(844)
(2)
21,48286(44)(6,595)
14,928

(83)
(18)
(34)
116
128
4,111
(171)
(359)
(2,376)3,235
1,217
30,50289(38)(4,396)26,156AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

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
Redemption of bonds
Repayments of lease obligations
Payments for purchase 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
Cash and cash equivalents at end of the year

- 14 -

Previous fiscal year
(May 1, 2020
to April 30, 2021)(Million yen)

Current fiscal year
(May 1, 2021
to April 30, 2022)(3,930)(5,880)

1,001
(557)
293

2,131
(905)
819

(997)

(2,322)

(20)
680
(0)
0
(1,811)
7(2,219)

(53)
340
(0)
1
(2,535)
10(3,842)

1,070

1,442

(3,110)
146
(12)
(34)
(9,493)(3,186)47(9)–(13,943)(21)
12,625(6,792)–(218)(1)(1,948)3,643
9,078
45,93155,009(6)300(3,842)(134)(107)(2,015)(1,948)(7,753)
4,460
55,00959,470AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

(5) Notes to consolidated statements(Notes on the premise of a going concern)
There are no applicable matters to be reported.
(Notes on significant changes in the amount of shareholders’ equity)
The Company is repurchasing a total of 300,000 shares in accordance with a resolution approved by the
Board of Directors at a meeting on June 7, 2021 (200,000 shares) and a resolution approved by the Board of
Directors at a meeting on December 6, 2021 (100,000 shares). As a result of the repurchases, during the current
fiscal year, the Company’s treasury shares increased by ¥2,015 million, resulting in a balance of ¥2,018 million
at the end of the period.
(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,
March 31, 2020; “Revenue Recognition Standard”), etc. from the beginning of the fiscal year under review. Under
the new standard, the Company recognizes revenue when promised goods or services are transferred to acustomer, with the amount expected to be received upon exchange of the goods or services recognized asrevenue.
The main changes arising from the application of the new accounting standard are as follows. With respect
to reward points provided to customers at the time of sale through the customer loyalty program service, theCompany previously booked the amount equivalent to the number of points expected to be redeemed in the
future as allowance for point cards and allowance for point cards was recorded under selling, general andadministrative expenses. Under the new accounting standard, the Company identifies points awarded as
performance obligations and allocates the transaction price based on the stand-alone selling price calculated bytaking into actual redemption rates and other factors. As a result of the change, some sales promotion expenses
and other expenses are deducted from sales.
The application of the Revenue Recognition Standard is subject to the transitional treatment provided for in
the supplementary provisions of Paragraph 84 of the Revenue Recognition Standard. If the new accounting
policy is applied prior to the beginning of the current fiscal year, the cumulative effect of the retroactive applicationis added to or subtracted from retained earnings at the beginning of the current fiscal year and the new
accounting policy is applied to balances at the beginning of said period.
As a result, in the fiscal year under review, the application of the accounting standard reduced sales by¥1,150 million, reduced selling, general and administrative expenses by ¥1,160 million and increased operating
profit, ordinary profit and profit before income taxes each by ¥9 million.
In the fiscal year under review, income before income taxes increased by ¥9 million on the consolidated
statement of cash flow.
After reflecting the cumulative impact on net assets at the start of the fiscal year under review, the start-ofyear balance for retained earnings on the consolidated statement of changes in net assets increased by ¥10
million.
The impact on per-share data is immaterial.
As a result of the application of the Revenue Recognition Standard, “provision for point card certificates”- 15 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

included in “current liabilities” in the consolidated financial statements for the previous fiscal year has been
included in “contract liabilities” from the current fiscal year. In accordance with the transitional treatment
stipulated in Article 89-2 of the Revenue Recognition Standard, figures for the previous fiscal year have not been
restated to reflect the new presentation approach.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30,
July 4, 2019; “Fair Value Measurement Standard”), etc. from the beginning of the fiscal year under review. In
accordance with the transitional treatment stipulated in Paragraph 19 of the Fair Value Measurement Standard
and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10, July 4,2019), the Company has decided to apply the new accounting policies in the Fair Value Measurement Standard
going forward. These changes have no impact on the Company’s quarterly consolidated financial statements.
(Changes in presentation of financial statements)(Consolidated Statement of Income)Due to an increase in financial materiality, “Loss on cancellation of rental contracts,” which was included
under “Other extraordinary losses” in the previous fiscal year, has been presented as a separate item from thefiscal year under review. The consolidated financial statements for the previous fiscal year have been restatedto reflect this change.
As a result, in the consolidated statement of income, “Other extraordinary losses” of ¥202 million in theprevious fiscal year have been restated and shown separately as “Loss on cancellation of rental contracts” of¥56 million and “Other extraordinary losses” of ¥145 million.

- 16 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

(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, which includes a retail store business and a real-estateleasing business. The formulation and examination of business strategy is conducted individually for eachbusiness.
Based on the above, the Company has classified its business into three reportable segments – thedispensing pharmacy business, the 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 profit level. Intersegment
sales and transfers are based on prevailing market prices.
As explained in “Changes in accounting policies,” the accounting treatment for revenue recognition haschanged due to the application of the Accounting Standard for Revenue Recognition, etc. from the beginningof the fiscal year under review. As a result, the calculation method for profit and loss in business segments
has also changed.
Compared with the previous method, in the fiscal year under review, the new method reduced sales in thecosmetic and drug store business segment by ¥1,097 million and increased segment income by ¥9 million,
and reduced sales in the other businesses segment by ¥53 million.

- 17 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

3. Sales, income (loss), assets, liabilities and other items for each reportable segment
I. Previous fiscal year (May 1, 2020 to April 30, 2021)(Million yen)
Reportable segments
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

263,095

19,41914,791

Total

Adjustments(Note) 1

Consolidated(Note) 2–

297,305

Sales
Sales to third parties
Intersegment sales

297,305

–

–

103

103

(103)

–

Total sales

263,095

19,41914,894297,408(103)

297,305

Segment income (loss)

20,947(1,999)(721)

18,227(5,577)

12,649Segment assets

161,497

13,326

9,469

184,293

19,368203,662

Depreciation
and amortization

2,571

536

303

3,411

291

3,702

Amortization of
goodwill

4,278

6

151

4,436

–

4,436

Impairment losses

516

288

–

804

–

804

Increase of tangible
and intangible assets

3,299

1,218

352

4,871

1,031

5,903

Other

Notes:

1. Segment income (loss) in “Adjustments” totaling (¥5,577 million) includes ¥6,684 million in corporate expenses,(¥1,278 million) in (income) losses that may not be allocated to the reporting segments, and ¥171 million inelimination due to intersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions and the system
logistics division of the parent company, which are not part of the reportable segments.
Segment assets in “Adjustments” totaling ¥19,368 million consist mainly of assets associated with theadministrative divisions and the system logistics division of the parent company, which are not part of thereportable segments, and the difference in elimination of intersegment transactions.
2. Segment income (loss) is adjusted with the ordinary income of consolidated statements of income.

- 18 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022
II. Current fiscal year (May 1, 2021 to April 30, 2022)(Million yen)
Reportable segments
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

Total

Adjustments(Note) 1

Consolidated(Note) 2

Sales
Sales to third parties

283,111

20,558

12,576316,247–

316,247

Intersegment sales

–

–

100

100

(100)

–

Total sales

283,111

20,55812,677

316,347(100)

316,247

Segment income (loss)

25,082(1,764)(146)

23,170(7,128)16,041

Segment assets

166,198

12,8109,269

188,279

24,181

212,461

Depreciation
and amortization

2,531

534

287

3,352

517

3,870

Amortization of
goodwill

3,985

6

140

4,133

–

4,133

Impairment losses

1,121

1,021

127

2,270

32

2,302

Increase of tangible
and intangible assets

6,162

1,028

435

7,626

1,287

8,913

Other

Notes:

1. Segment income (loss) in “Adjustments” totaling (¥7,128 million) includes ¥8,170 million in corporate expenses,(¥1,164 million) in (income) losses that may not be allocated to the reporting segments, and ¥121 million inelimination due to intersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions and the system
logistics division of the parent company, which are not part of the reportable segments.
Segment assets in “Adjustments” totaling ¥24,181 million consist mainly of assets associated with theadministrative divisions and the system logistics division of the parent company, which are not part of thereportable segments, and the difference in elimination of intersegment transactions.
2. Segment income (loss) is adjusted with the ordinary income of consolidated statements of income.

- 19 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

Related information
Previous fiscal year (May 1, 2020 to April 30, 2021)
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 located outside
Japan at the balance sheet date.
Current fiscal year (May 1, 2021 to April 30, 2022)
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 located outside
Japan at the balance sheet date.
Information regarding impairment losses of fixed assets for each reported segment
Previous fiscal year (May 1, 2020 to April 30, 2021)
This disclosure has been omitted because the same information is disclosed under Segment Information.
Current fiscal year (May 1, 2021 to April 30, 2022)
This disclosure has been omitted because the same information is disclosed under Segment Information.

- 20 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022

Information about goodwill amortization amount and year-end balance for each reportable segment
Previous fiscal year (May 1, 2020 to April 30, 2021)(Million yen)
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

Corporate /Eliminations

Total

Amortization of current fiscal year

4,278

6

151

–

4,436

Balance at the end of current fiscal year

37,821

54

1,182

–

39,057

Current fiscal year (May 1, 2021 to April 30, 2022)(Million yen)
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

Corporate /Eliminations

Total

Amortization of current fiscal year

3,985

6

140

–

4,133

Balance at the end of current fiscal year

35,263

47

1,041

–

36,352

Information about gains on bargain purchase for each reported segment
Previous fiscal year (May 1, 2020 to April 30, 2021)
There are no applicable matters to be reported.
Current fiscal year (May 1, 2021 to April 30, 2022)
There are no applicable matters to be reported.
(Per-share information)
Previous fiscal year
(May 1, 2020 to April 30, 2021)

Current fiscal year
(May 1, 2021 to April 30, 2022)

Net assets per share

3,267.49 yen

3,385.51 yen

Earnings per share

189.04 yen

201.47 yen

Notes: 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, 2020 to April 30, 2021)(May 1, 2021 to April 30, 2022)
Profit attributable to owners of parent(million yen)

6,697

7,092

–

–

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

6,697

7,092

Average number of shares outstanding(shares)

35,427,408

35,202,302

Amount not attributable to ordinary
shareholders (million yen)(Material subsequent events)(Business combination through acquisition)
At a meeting of the Board of Directors on May 9, 2022, the Company approved the acquisition of shares in Pharmacy
Holdings Co. Ltd. (head office: Fukuyama City, Hiroshima Prefecture), making it a subsidiary. The shares were acquired on
May 23, 2022.
(1) Overview of business combination- 21 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2022
(i) Name and business of acquired company
Name: Pharmacy Holdings Co. Ltd.
Business: Ownership of shares, managemant and control of operating companies (mainly managemenet of dispensing
pharmacies), real estate leasing(ii) Main reasons for business combination
Adding Pharmacy Holdings to the Group will further expand the AIN Group’s chain of dispensing pharmacies and bring
together mutual business expertise that enhances patient services, increasing the Group’s corporate value as a key part ofcommunity healthcare provision.
(iii) Date of business combination
May 23, 2022(iv) Legal form of business combination
Acquisition of shares(v) Name of company after acquisition
No change(vi) Share of voting rights acquired
100%(vii) Main basis for determining company has been acquired
Cash payment for shares in the company(2) Breakdown of acquisition price and payments
Information has not been disclosed, as the sellers are individuals and the share purchase contract stipulates confidentiality.

- 22 -