Summary of Financial Statements for the Third Quarter of Fiscal Year Ending April 2024
[Japan GAAP] (Consolidated)
March 1, 2024
Name of listed company:

AIN HOLDINGS INC.

Exchange listed on:

Prime Market of Tokyo Stock Exchange and Sapporo Securities Exchange

Code number:

9627

URL: https://www.ainj.co.jp/corporate/

Representative:
Inquiries:

Kiichi Otani, President and Representative Director
Toshihide Mizushima, Representative Senior Managing Director
TEL: +81-11-814-1000
Date of filing quarterly securities report:
March 15, 2024-

Start of dividend payment:

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

Supplementary documents for quarterly results:

appropriately as the financial statements.)

Quarterly results briefing:No(Amounts are rounded down to the nearest million yen.)
1. Consolidated results for the third quarter of fiscal year ending April 30, 2024 (May 1, 2023 to January 31, 2024)(1) Consolidated operating results(Percentage figures show year-on-year changes.)
Profit attributable
Net sales
EBITDA
Operating profit
Ordinary profit
to owners of parent
Million yen% Million yen% Million yen% Million yen% Million yen%
Nine months ended
296,360 12.3
22,18717.5
14,30522.4
15,050 21.7
8,730
31.7
January 31, 2024
Nine months ended
263,906 12.5
18,877
13.5
11,685
14.4
12,367 14.5
6,628
6.4
January 31, 2023
(Note) Comprehensive income:Nine months ended January 31, 2024: ¥8,828 million (+32.9%)
Nine months ended January 31, 2023: ¥6,643 million (+6.7%)(Note) EBITDA = (operating profit + depreciation + amortization of goodwill)
Earnings
per share

Diluted earnings
per share
Yen

Yen

Nine months ended January 31, 2024

248.51

Nine months ended January 31, 2023

188.70––(2) Consolidated financial position
Total assets

Net assets

Shareholders’ equity ratio

Million yen

Million yen%

As of January 31, 2024

243,688

133,278

54.7

As of April 30, 2023

231,750

126,546

54.6(Reference) Shareholders’ equity:

As of January 31, 2024: ¥133,206 million

As of April 30, 2023: ¥126,449 million

2. Dividends
End of firstquarter
Yen
Year ended April 30, 2023––

End of second
quarter
Yen
0.00

0.00
Year ending April 30, 2024
Year ending April 30, 2024
(forecast)(Note) Revision to the most recently announced dividend forecasts: No

Dividend per share
End of third
quarterYen––

End of year

Full year

Yen

Yen

60.00

60.00

60.00

60.00

3. Consolidated financial forecasts for the fiscal year ending April 30, 2024 (May 1, 2023 to April 30, 2024)(Percentage figures show year-on-year changes.)
Profit attributable
Earnings
Net sales
EBITDA
Operating profit
Ordinary profit
to owners ofper share
parentMillion%Million%Million%Million%Million
%
Yen
yen
yen
yen
yen
yen
390,263
8.8 29,000 12.2
18,45015.3
19,340 13.3
10,0008.3
284.64
Full year(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. Quarterly consolidated financial statements and major notes (3) Notes on quarterly consolidated financial
statements” on page 8 of the Attachment.

(3) Changes in accounting principles, changes in accounting estimates, and restatement of revisions
1) Changes in accounting principles as a result of revisions to accounting standards, etc.:
No2) Changes in accounting principles other than 1):
No3) Changes in accounting estimates:
No4) Restatement of revisions:No(4) Number of outstanding shares (common stock)1) Number of outstanding
shares (including treasury
As of January 31, 2024 35,428,212 shares As of April 30, 2023
stock):
2) Number of shares held in
As of January 31, 2024
295,764 shares As of April 30, 2023
treasury:
3) Average number ofNine months ended
Nine months ended
35,131,383 sharesshares outstanding:January 31, 2023
January 31, 2024

35,428,212 shares
298,188 shares
35,128,813 shares*This Summary of Financial Statements is outside the scope of quarterly review procedures.
*Statement regarding the proper use of financial forecasts and other special remarks(Caution concerning forward-looking statements)
The above forecasts are calculated based on the information available as of the publication date of this material, and actual
financial results may vary due to change in future economic conditions and others.

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2024

Contents of the Attachment

1. Qualitative information on consolidated results for the period under review ............................................................................ 2(1) Consolidated operating results ........................................................................................................................................... 2(2) Consolidated financial position ........................................................................................................................................... 3(3) Forecast of consolidated financial results and other forward-looking information............................................................... 3
2. Quarterly consolidated financial statements and major notes ................................................................................................. 4(1) Quarterly consolidated balance sheet ................................................................................................................................ 4(2) Quarterly consolidated statements of income and comprehensive income ........................................................................ 6
Quarterly consolidated statements of income..................................................................................................................... 6
Quarterly consolidated statements of comprehensive income ........................................................................................... 7(3) Notes on quarterly consolidated financial statements ........................................................................................................ 8(Notes on the premise of a going concern) ........................................................................................................................ 8(Notes on significant changes in the amount of shareholders’ equity) ................................................................................ 8(Application of specified accounting methods for the preparation of quarterly consolidated financial statements) ............. 8(Changes in presentation) .................................................................................................................................................. 8(Segment information, etc.) ................................................................................................................................................ 9

1

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2024

1. Qualitative information on consolidated results for the period under review(1) Consolidated operating results
During the first nine months of the current fiscal year (May 1, 2023 to January 31, 2024), the Japanese economy showedsigns of a moderate pickup, supported by a recovery in mobility following the downgrade of COVID-19 to a category-5
infectious disease and the easing of mobility restrictions. However, the outlook remains uncertain due to rising prices andfluctuations in financial and capital markets.
The January 2024 Noto Peninsula Earthquake did not lead to casualties among the employees of the AIN HOLDINGSGroup (the Group), but 29 pharmacies and stores in the Hokuriku three prefectures and Niigata prefecture were affected,
including damage to pharmaceutical and product displays and damage to retail premises. As a result, two pharmacies wereforced to close temporarily, but are operating again after efforts were made to rapidly resume the provision of medical care
to affected areas. The Group has also decided to contribute to relief funds to help affected areas recover and rebuild as
quickly as possible. The impact of the earthquake on the Group’s business is likely to be modest.
During the period under review, the Group is working 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. In addition,
diversity & inclusion is a key part of our efforts to create a “sound management base,” one of the Group’s materiality issues.
Specifically, the Group is actively promoting diversity by creating working environments and organizations that are welcoming
and motivating for all employees, among other initiatives. These efforts have been recognized, with AIN PHARMACIEZ INC.,
the Group’s core operating company, receiving "Platinum Kurumin" certification from the Minister of Health, Labour andWelfare in July 2023 for its efforts to help employees balance work and parenting commitments as a "parenting support
company."
In October 2022, the Company established its CSR Procurement Policy and Guidelines. In July 2023, we held a briefing
session for suppliers to implement CSR procurement across the Group’s supply chain, and in August, we conducted a CSR
survey to ascertain the status of implementation. In this way, we will assess and analyze supply chain risks and communicate
with suppliers to ensure compliance with our CSR requirements, helping to strengthen the Group’s collaborative CSR systemwith suppliers.
In February 2024, the Company received a B-score from CDP, an international environmental NGO that manages theworld's most comprehensive dataset on environmental disclosure, for its efforts to address climate change and disclose
environmental information. Going forward, the Company will continue to help create a sustainable global environment
through its business activities by protecting the environment and minimizing its environmental impact, in line with one of theGroup’s materiality issues – "protect the environment and reduce environmental impact."
The AIN Group aims to be a company that “people welcome to their communities” by helping to solve various social issues
through its business activities.
Results for nine months ended January 31, 2024 (May 1, 2023 to January 31, 2024) are as follows.
(Million yen)
ChangeNine months ended Nine months ended

January 31, 2023
Net sales
Operating profit
Ordinary profit
Profit attributable to owners of parent

Change (%)

January 31, 2024

263,906
11,685
12,367
6,628

296,360
14,305
15,0508,730

Nine months ended
January 31, 2023

Nine months ended
January 31, 2024

Sales
236,396
Segment profit
18,023
Sales
18,836
Segment profit
737
Sales
8,716
Other businesses
Segment profit(2)(loss)(Note) Segment sales include intersegment transactions.

265,019
19,71322,9052,246
8,472

28,623
1,689
4,068
1,509
(243)

12.1
9.4
21.6
204.7
(2.8)

(80)

(78)

-

Results by segment are as follows.
(Million yen)
Dispensing
pharmacy business
Cosmetic and drug
store business

2

32,454
2,620
2,682
2,101

Change

12.3
22.4
21.7
31.7

Change (%)

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2024

(Dispensing pharmacy business)
The Group is working to leverage the primary care capabilities of its pharmacists and dispensing pharmacies to help
patients access medical services in their local community with peace of mind. Specifically, the Group is cooperating withmedical institutions, using patient medication notebooks to ensure integrated and continuous monitoring of patient
medication, and providing services for home-based healthcare.
The Group is also actively promoting digital transformation to improve convenience for patients. Specifically, in addition tothe official AIN Pharmacy app, which was launched in 2022, the Group set up an official AIN Pharmacy LINE account in
October 2023 to make its prescriptions sending service more accessible for customers.
During the first nine months of the current fiscal year, the average prescription price rose due to an increase in high-costprescriptions, including COVID-19 treatments. The number of prescriptions also increased, reflecting the easing ofrestrictions on outpatient visits after COVID-19 was downgraded to a category-5 infectious disease and an increase in service
levels related to improvements in the capabilities of primary care pharmacists and pharmacies and reduced waiting times.
During the first nine months of the fiscal year, the Group opened 25 new dispensing pharmacies, including those acquired
through M&A deals, closed 11, and sold two, resulting in a total of 1,221.
(Cosmetic and drug store business)
In the cosmetic and drug store business, customer numbers were firm amid a recovery in mobility for both domestic
shoppers and overseas visitors. There was also a change in customer buying habits from infection control products tocosmetics, one of the Company's strengths, lifting the average sales price. In particular, sales are increasing for Asian
cosmetics – a category the Group is focusing on. The Group will continue to closely monitor buying trends, reinforce themerchandise lineup and create attractive retail displays.
During the first nine months of the fiscal year, the Group opened five stores and closed two, resulting in a total of 81
cosmetic and drug stores.
(2) Consolidated financial position
The balance of total assets at the end of the third quarter increased ¥11,937 million from the end of the previous fiscal
year to ¥243,688 million. The main factor was an increase in merchandise such as drugs for COVID-19 treatments, and anincrease in buildings and structures due to the opening of stores.
The balance of liabilities rose ¥5,205 million to ¥110,409 million. The main factor was an increase for accounts payable trade.
The balance of short-term and long-term borrowings declined ¥3,141 million to ¥5,549 million. The main factor was arepayment of borrowings.
Total net assets increased ¥6,732 million to ¥133,278 million and the shareholders’ equity ratio rose 0.1 of a percentage
point to 54.7%.
(3) Forecast of consolidated financial results and other forward-looking information
There are no changes to the Group’s full-year consolidated financial forecasts, which were announced on December 6,
2023.

3

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2024

2. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheet
Fiscal year endedApril 30, 2023
(As of April 30, 2023)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise
Supplies
Short-term loans receivable
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Leasehold and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4(Million yen)
Nine months ended
January 31, 2024
(As of January 31, 2024)

46,796
13,24921,299286
355
11,9694,348
98,30550,057
14,00726,807286
143
11,5194,016(1)106,837

21,407
10,602
7,449
39,45927,010
10,116
5,619
42,74546,4435,900
52,343

43,947
6,716
50,6642,720
5,990
24,5078,735(312)
41,641
133,444
231,750

3,427
6,287
24,7139,389(377)
43,440136,850
243,688

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2024

Fiscal year endedApril 30, 2023
(As of April 30, 2023)

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Income taxes payable
Deposits received
Provision for bonuses
Provision for bonuses for directors
Contract liabilities
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5(Million yen)
Nine months ended
January 31, 2024
(As of January 31, 2024)

58,698
3,670
3,328
18,232
3,215
22
532
5,284
92,986

67,987
3,183
3,144
19,772
1,560
10
450
4,739
100,847

5,021
4,498
2,697
12,218105,204

2,366
4,815
2,378
9,561
110,409

21,89420,50485,963(2,000)126,362

21,894
20,49992,586(1,983)
132,997

(7)
95
87
96
126,546
231,750

137
72
209
71
133,278
243,688

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2024

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statements of income
Nine months ended
January 31, 2023
(May 1, 2022 toJanuary 31, 2023)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Commission income
Rental income from real estate
Outsourcing service income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sale of receivables
Rental expenses on real estate
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of businesses
Surrender value of insurance policies
Other
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

6(Million yen)
Nine months ended
January 31, 2024
(May 1, 2023 toJanuary 31, 2024)

263,906
224,213
39,69228,006
11,685296,360
253,147
43,21328,907
14,305

36
62
12
151
165
169
367
965

31
41
9
220
199
227
348
1,077

40
75
92
30
45
283
12,367

26
86
75
96
48
332
15,050

2
73
35
1
113

417
7
11
4
439

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

133
219
106
459
15,031
6,325
8,705
(24)
8,730

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2024

Quarterly consolidated statements of comprehensive income
Nine months ended
January 31, 2023
(May 1, 2022 toJanuary 31, 2023)

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

7(Million yen)
Nine months ended
January 31, 2024
(May 1, 2023 toJanuary 31, 2024)

6,611

8,705

14
18
32
6,643
6,661

145
(22)
122
8,828
8,852

(17)

(24)

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2024

(3) Notes on quarterly consolidated financial statements(Notes on the premise of a going concern)
There are no applicable matters to be reported.
(Notes on significant changes in the amount of shareholders’ equity)
There are no applicable matters to be reported.
(Application of specified accounting methods for the preparation of quarterly consolidated financial statements)
To calculate tax expenses, the effective tax rate on profit before income taxes for the consolidated fiscal year after theapplication of tax effect accounting is reasonably estimated and the estimated rate is applied to profit before income taxes
for the quarterly period.
(Changes in presentation)(Quarterly consolidated statements of income)"Provision of allowance for doubtful accounts," which was included in "Other" under "Non-operating expenses" in the firstnine months of the previous fiscal year, has been presented as a separate item from the first nine months of the current
fiscal year due to an increase in financial materiality. The consolidated financial statements for the first nine months of theprevious fiscal year have been restated to reflect this change.
As a result, in the consolidated statements of income for the first nine months of the previous fiscal year, "Other" of ¥75
million under "Non-operating expenses" has been restated and shown separately as "Provision of allowance for doubtful
accounts" of ¥30 million and "Other" of ¥45 million.

8

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2024

(Segment information, etc.)
I Nine months ended January 31, 2023 (May 1, 2022 to January 31, 2023)
1. Net sales and profit (loss) by reportable segment(Million yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Reportable segments
Adjustments(Note) 1

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses(1) Sales to third parties

236,396

18,836

8,672

263,906-

263,906(2) Intersegment sales

-

-

43

43

(43)

-

236,396

18,836

8,716

263,949(43)

263,906

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

Total

Sales

Total sales
Segment profit (loss)
Notes:

1. The adjustment of ¥(6,390) million to segment profit (loss) includes ¥7,269 million in corporate expenses, ¥(916)
million in (income) loss that are not allocated to reportable segments, and ¥37 million in eliminations due tointersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions and the system
logistics division, which are not part of the reportable segments.
2. Segment profit (loss) is adjusted with the ordinary profit of quarterly consolidated statements of income.

2. Impairment losses on fixed assets and goodwill by reportable segment[Significant impairment losses on fixed assets]
There are no applicable matters to be reported.
[Significant changes in the amount of goodwill]In the dispensing pharmacy business segment, Pharmacy Holdings Co. Ltd. and its subsidiaries were included in thescope of consolidation from the first quarter of the current fiscal year following the acquisition of all shares in Pharmacy
Holdings Co. Ltd. In the first nine months of the fiscal year, the increase in goodwill related to these companies was ¥13,026
million.
Pharmacy Holdings Co. Ltd. was dissolved on December 1, 2022 after it was merged into its wholly owned subsidiary
PHARMACY Co. Ltd. (Fukuyama City, Hiroshima Prefecture), the surviving company.
In addition, the tentative calculation for goodwill applied in the first quarter of the fiscal year was finalized in the third
quarter.

9

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2024

II Nine months ended January 31, 2024 (May 1, 2023 to January 31, 2024)
1. Net sales and profit (loss) by reportable segment(Million yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Reportable segments
Adjustments(Note) 1

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses(1) Sales to third parties

265,019

22,905

8,435

296,360-

296,360(2) Intersegment sales

-

-

37

37

(37)

-

265,019

22,905

8,472

296,397(37)

296,360

19,713

2,246

(80)

21,879(6,829)15,050

Total

Sales

Total sales
Segment profit (loss)
Notes:

1. The adjustment of ¥(6,829) million to segment profit (loss) includes ¥7,673 million in corporate expenses, ¥(812)
million in (income) loss that are not allocated to reportable segments, and ¥(31) million in eliminations due tointersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions and the system
logistics division, which are not part of the reportable segments.
2. Segment profit (loss) is adjusted with the ordinary profit of quarterly consolidated statements of income.

2. Impairment losses on fixed assets and goodwill by reportable segment[Significant impairment losses on fixed assets]
There are no applicable matters to be reported.
[Significant changes in the amount of goodwill]
There are no applicable matters to be reported.

10