Summary of Financial Statements for the Third Quarter of Fiscal Year Ending April 2016
[Japan GAAP] (Consolidated)

February 24, 2016

Name of listed company:

AIN HOLDINGS INC.

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

Code number:

9627

URL:

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

Representative:
Inquiries:

Kiichi Otani, President and Representative Director
Toshihide Mizushima, Representative Senior Managing Director
TEL: +81-11-814-1000
Date of filing quarterly securities report:
March 16, 2016
Start of dividend payment:–

Supplementary documents for quarterly results:

Yes

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, 2016 (May 1, 2015 to January 31, 2016)(1) Consolidated operating results(Percentage figures show year-on-year changes.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Nine months ended January 31,
2016
Nine months ended January 31,
2015(Note) Comprehensive income:Million yen%

Million yen%

Million yen%

Million yen%

169,395

24.2

10,00433.2

10,315

31.8

5,531

23.7

136,394

8.2

7,510

0.1

7,824

0.2

4,471

4.4

Nine months ended January 31, 2016: ¥5,408 million (+17.1%)
Nine months ended January 31, 2015: ¥4,618 million (+8.2%)
Diluted earnings
per share

Earnings
per share
Nine months ended January 31,
2016
Nine months ended January 31,
2015

Yen

Yen

174.44–141.04–* On October 1, 2014, the Company conducted a 2-for-1 stock split of common shares. Earnings per share is calculated by deeming stock
splits to have occurred at the beginning of the previous fiscal year.

(2) Consolidated financial position

As of January 31, 2016
As of April 30, 2015
(Reference) Shareholders’ equity:

Shareholders’equity ratio

Net assets

Total assets

Net assets per
share

Million yen

Million yen%

Yen

137,584

52,23437.9

1,644.86

114,149

48,04642.0

1,511.57

As of January 31, 2016: ¥52,154 million

As of April 30, 2015: ¥47,928 million

2. Dividends

Year ended April 30, 2015

End of firstquarterYen–

End of second
quarter
Yen
0.00

Dividend per share
End of third
quarter
Yen
–

–
0.00
Year ending April 30, 2016
Year ending April 30, 2016
(forecast)(Note) Revision to the most recently announced dividend forecasts: No

End of year

Full year

Yen

Yen

30.00

30.00

40.00

40.00

–

3. Consolidated financial forecasts for the fiscal year ending April 30, 2016 (May 1, 2015 to April 30, 2016)(Percentage figures show year-on-year changes.)
Profit attributable toEarnings
Net sales
Operating income
Ordinary income
owners of parent
per share
Million yen%
Million yen%
Million yen%
Million yen%
Yen
Full year

218,280

16.2

13,40017.0

13,700

17.1

7,230

16.7

228.02(Note) Revision to the most recently announced consolidated financial forecasts: No*Notes(1) Major changes in subsidiaries during the period (changes in specified subsidiaries resulting from changes in scope of
consolidation): No
Newly consolidated: –Excluded: –(2) Application of specified accounting methods for the preparation of quarterly consolidated financial statements: Yes(Note) For detail, please refer to “2. Matters concerning summary information (notes) (2) Application of specified accounting methods forthe preparation of quarterly consolidated financial statements” on page 3 of the Attachment.

(3) Changes in accounting principles, changes in accounting estimates, and restatement of revisions
1) Changes in accounting principles as a result of revisions to accounting standards, etc.:
Yes2) Changes in accounting principles other than 1):
No3) Changes in accounting estimates:
No4) Restatement of revisions:No(Note) For detail, please refer to “2. Matters concerning summary information (notes) (3) Changes in accounting principles, changes inaccounting estimates, and restatement of revisions” on page 3 of the Attachment.

(4) Number of outstanding shares (common stock)1) Number of outstanding
As of January 31,
shares (including treasury
2016
stock):
2) Number of shares held in
As of January 31,
treasury:
20163) Average number ofNine months ended
shares outstanding:January 31, 2016

31,888,212 shares As of April 30, 2015

31,888,212 shares

180,595 shares As of April 30, 2015

180,595 shares

Nine months ended
January 31, 2015

31,708,010 shares

31,707,617 shares* On October 1, 2014, the Company conducted a 2-for-1 stock split of common shares. Average number of shares outstanding is
calculated by deeming stock splits to have occurred at the beginning of the previous fiscal year.
*Status of execution of the quarterly review of financial statements
This quarterly financial summary is not subject to the quarterly review procedure based on the Financial Instruments and Exchange Act. Asof the time of disclosure, this review procedure for quarterly financial consolidated statements had not been completed.
*Statement regarding the proper use of financial forecasts and other special remarks
The above forecasts are calculated based on the information available as of the publication date of this material, and actual financial
results may vary due to change in future economic conditions and others.

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2016

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. Matters concerning summary information (notes) ................................................................................................................... 3(1) Major changes in subsidiaries during the period ................................................................................................................ 3(2) Application of specified accounting methods for the preparation of quarterly consolidated financial statements ................. 3(3) Changes in accounting principles, changes in accounting estimates, and restatement of revisions .................................... 3
3. Quarterly consolidated financial statements ............................................................................................................................ 4(1) Quarterly consolidated balance 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(Segment Information, etc.).................................................................................................................................................... 8

1

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2016

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, 2015 to January 31, 2016), the Japanese economy
recovered at a moderate pace, supported by firm consumer spending and improvements in corporate earnings and theemployment market.
In this economic environment, the AIN HOLDINGS Group (the Group) worked to expand its business and increase
earnings. Specifically, the Group opened new dispensing pharmacies and used M&A to expand the business. It also
developed its urban drug and cosmetic store business.
In addition, effective from November 1, 2015, the Group moved to a holding company structure. By separating theGroup’s management and business execution functions, the Group aims to enhance corporate governance, clarify theauthority and responsibility of each business segment and promote greater management autonomy, creating thefoundations for further business expansion.
In the first nine months of the fiscal year, net sales rose 24.2% year on year to ¥169,395 million, operating income
increased 33.2% to ¥10,004 million, ordinary income increased 31.8% to ¥10,315 million, and profit attributable to ownersof parent increased 23.7% to ¥5,531 million.
Financial results by business segment are as follows.
(Dispensing pharmacy business)
In the dispensing pharmacy business, sales continued to rise at existing dispensing pharmacies, supported by anincrease in average sales per prescription due to growth in prescriptions for new medicines.
In drug price and dispensing fee revisions scheduled for April 2016, we expect the role of pharmacies located near
hospitals to be reevaluated, but in order to realize patient-focused non-hospital dispensing services, pharmacists anddispensing pharmacies will be strongly required to play a key role at the heart of local communities.
To ensure our pharmacists and dispensing pharmacies fulfill their role at the heart of local communities, the Group willcontinue to build links with local healthcare service providers, mainly in the area of home-based dispensing, step up theintegration and continuous management of drug information using patient medication notebooks and other means, andpromote wider use of generic drugs.
In business development, the Group continued to push ahead with business expansion by opening new dispensing
pharmacies and using M&A, including the acquisition of NP HOLDINGS Co., Ltd. (Takamatsu-shi, Kagawa Prefecture) in
November 2015. NP HOLDINGS is the largest dispensing pharmacy chain in the Shikoku region and is now a subsidiary of
the Group.
As a result, for the first nine months of the fiscal year, the dispensing pharmacy business reported sales and profit growthwith sales rising 23.9% year on year to ¥151,884 million and segment income increasing 38.9% to ¥13,341 million.
During the period under review, the Group opened 97 new dispensing pharmacies, including those acquired throughM&A deals, and closed nine pharmacies, resulting in a total of 842.
(Drug and cosmetic store business)
In the drug and cosmetic 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 realignmentthat also extends to other business sectors.
Against this backdrop, the Group continued to open ainz & tulpe urban drug and cosmetic stores, strengthened
merchandise lineups, particularly drug and cosmetics products, and worked to capture inbound demand. As a result,sales at existing drug and cosmetic stores increased year on year.
In addition, in February 2016, the Group opened ainz & tulpe NEW CHITOSE AIRPORT (Chitose-shi, Hokkaido) in the
airport's international passenger terminal, in order to further strengthen efforts to capture inbound demand.
The Le trois retail facility (Chuo Ward, Sapporo), which was opened in September 2015, saw steady customer trafficand sales, supported by efforts to promote it as a mixed-use integrated beauty complex in Sapporo’s Odori area.
As a result, for the first nine months of the fiscal year, the drug and cosmetic store business reported an increase insales of 19.1% year on year to ¥15,601 million. However, segment loss was ¥336 million, compared with segment incomeof ¥92 million in the same period a year earlier.
In the third quarter of the fiscal year, the Group opened ainz & tulpe MARUI CITY YOKOHAMA (Nishi Ward, Yokohama),
ainz & tulpe SHINJUKU HIGASHIGUCHI (Shinjuku Ward, Tokyo) and ainz & tulpe Le trois (Chuo Ward, Sapporo) andclosed four stores, centered on suburban-type stores, resulting in a total of 55 cosmetic and drug stores at the end of thethird quarter.
2

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2016

(Other businesses)
Net sales from other businesses rose 173.1% year on year to ¥1,910 million and segment loss was ¥786 million
compared with the loss of ¥34 million a year earlier.
(2) Consolidated financial position
The balance of total assets at the end of the third quarter increased by ¥23,434 million from the end of the previous
fiscal year to ¥137,584 million.
This mainly reflected cash on hand and in banks and increases in inventories, property, plant and equipment such as
land, buildings and structures, and goodwill due to the Group’s business expansion through new store openings and
M&A.
The balance of liabilities increased ¥19,246 million to ¥85,349 million.
The balance of short- term and long-term debts increased by ¥9,049 million to ¥23,020 million.
Total net assets increased by ¥4,188 million to ¥52,234 million and the shareholders’ equity ratio decreased 4.1
percentage points to 37.9%.
(3) Forecast of consolidated financial results and other forward-looking information
The Group has made no change to its earnings forecasts for the full fiscal year, announced on May 27, 2015.

2. Matters concerning summary information (notes)(1) Major changes in subsidiaries during the period
There are no applicable matters to be reported.

(2) Application of specified accounting methods for the preparation of quarterly consolidated financial statements
Tax expenses were calculated by reasonably estimating the effective tax rate after the application of tax effectaccounting to income before income taxes for the consolidated fiscal year including the third quarter, and multiplying theestimated effective tax rate by income before income taxes for the quarter.
(3) Changes in accounting principles, changes in accounting estimates, and restatement of revisions[Application of accounting standard for business combinations, etc.]
The Company has applied the “Accounting Standard for Business Combinations” (Accounting Standards Board ofJapan (ASBJ) Statement No. 21, September 13, 2013), the “Accounting Standard for Consolidated Financial Statements”(ASBJ Statement No. 22, September 13, 2013) and the “Accounting Standard for Business Divestitures” (ASBJ
Statement No. 7, September 13, 2013) from the first quarter of the current fiscal year. As a result, the accounting method
was changed to record the difference arising from changes in the equity in subsidiaries under ongoing control of theCompany as capital surplus, and acquisition-related costs as expenses for the fiscal year in which they are incurred. In
addition, with respect to any business combination entered into on or after the first day of the first quarter under review,
the accounting method was changed to reflect adjustments to the allocation of acquisition cost under provisional
accounting treatment on the consolidated financial statements of the quarterly financial period in which the relevantbusiness combinations became or will become effective. Furthermore, the presentation method for “net income” waschanged, and references to “minority interests” were changed to “non-controlling interests.” To reflect these changes, theCompany has reclassified its quarterly and full-year consolidated financial statements for the third quarter of the previous
fiscal year and the previous fiscal year.
The Company has applied the Accounting Standard for Business Combinations and the other standards in accordancewith transitional provisions in paragraph 58-2(4) of the Accounting Standard for Business Combinations, paragraph44-5(4) of the Accounting Standard for Consolidated Financial Statements and paragraph 57-4(4) of the AccountingStandard for Business Divestitures, prospectively at the beginning of the first quarter under review.
As a result, during the first nine months of the fiscal year, capital surplus decreased ¥214,890 thousand andoperating income, ordinary income and income before income taxes each declined by ¥482,292 thousand.

3

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2016

3. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheet

Fiscal year endedApril 30, 2015
(As of April 30, 2015)

AssetsCurrent assets
Cash on hand and in banks
Notes and accounts receivable
Merchandise
Supplies
Deferred tax assets
Short-term loans
Other accounts receivable
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures, net
Land
Other property, plant and equipment, net
Total property, plant and equipment
Intangible fixed assets
Goodwill
Other intangible fixed assets
Total intangible fixed assets
Investments and other assets
Investments in securities
Deferred tax assets
Deposits and guarantees
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets

4(Thousand yen)
Nine months ended
January 31, 2016
(As of January 31, 2016)

19,553,423
8,369,451
9,747,115
162,635
894,440
739,342
5,291,030
1,765,517(157,053)
46,365,901

24,209,231
12,942,015
12,435,625
162,989
1,031,915
770,939
4,011,769
2,497,308(424,216)
57,637,579

11,678,535
7,931,761
2,862,045
22,472,342

14,784,312
8,323,176
4,155,975
27,263,464

26,340,056
1,283,021
27,623,077

31,773,683
2,146,103
33,919,787

2,872,382
984,239
9,710,040
4,644,288(522,385)
17,688,566
67,783,986
114,149,888

2,880,051
1,481,052
10,008,071
5,202,148(807,709)
18,763,614
79,946,866
137,584,445

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2016

Fiscal year endedApril 30, 2015
(As of April 30, 2015)

Liabilities
Current liabilities
Accounts payable
Short-term debt
Accrued income taxes
Deposits received
Allowance for bonuses to employees
Allowance for bonuses to directors
Reserve for reward obligations
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term debt
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 (loss)
Unrealized holding gains on securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income(loss)
Non-controlling interests
Total net assets
Total liabilities and net assets

5(Thousand yen)
Nine months ended
January 31, 2016
(As of January 31, 2016)

31,826,516
6,330,773
2,320,567
9,052,200
1,353,380
11,751
338,824
3,199,345
54,433,358

40,195,645
6,998,266
2,226,176
10,460,156
694,5634,260
394,647
3,835,973
64,809,689

7,640,133
1,636,186
2,393,661
11,669,982
66,103,340

16,022,352
2,035,957
2,481,497
20,539,807
85,349,497

8,682,976
7,872,970
31,639,894(419,311)
47,776,529

8,682,976
7,658,079
36,219,834(419,311)
52,141,578

227,061(75,210)
151,851
118,166
48,046,547
114,149,888

65,795(52,695)
13,10080,26952,234,948
137,584,445

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2016

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statements of income
Nine months ended
January 31, 2015
(May 1, 2014 toJanuary 31, 2015)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Commissions received
Real estate rental revenue
Consignment income
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expenses
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
Extraordinary income
Gains on sales of investments in securities
Gains on sales of fixed assets
Penalty income
Other extraordinary income
Total extraordinary income
Extraordinary losses
Losses on disposal and sales of fixed assets
Impairment losses on investments in securities
Directors’ retirement benefits
Restructuring loss
Other extraordinary losses
Total extraordinary losses
Income before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

6(Thousand yen)
Nine months ended
January 31, 2016
(May 1, 2015 toJanuary 31, 2016)

136,394,428
116,156,197
20,238,230
12,727,547
7,510,683

169,395,846
142,049,330
27,346,515
17,341,735
10,004,780

54,39530,67735,504122,014116,048
197,374
556,01442,97733,47749,455
132,803
143,655
420,964
823,333

62,826
61,685
66,12951,551
242,1937,824,503

71,59460,59465,628282,600
31,707512,125
10,315,987

7,040
2,298
9,338

23,681
68,196
15,895
107,773

128,151
29,441
106,960
56,449321,0027,512,839
3,016,963
4,495,876
23,9204,471,955

242,529
96,273
98,637
11,448448,8899,974,871
4,427,691
5,547,180
16,011
5,531,168

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2016

Quarterly consolidated statements of comprehensive income
Nine months ended
January 31, 2015
(May 1, 2014 toJanuary 31, 2015)

ProfitOther comprehensive income
Unrealized holding gains (losses) on securities
Remearurements of defined benefit plans, net of tax
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7(Thousand yen)
Nine months ended
January 31, 2016
(May 1, 2015 toJanuary 31, 2016)

4,495,876

5,547,180

102,093(161,265)

20,707
122,801
4,618,677
4,594,756

22,514(138,751)
5,408,429
5,392,417

23,92016,011AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2016(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.
(Segment Information, etc.)
I Nine months ended January 31, 2015 (May 1, 2014 to January 31, 2015)
1. Net sales and income (loss) by reportable segment
Reportable segments(Thousand yen)
Carried onquarterly
Adjustments
consolidated(Note) 1
statements ofincome(Note) 2

Dispensing
pharmacy

Drug andcosmetic store(1) Sales to third parties

122,592,022

13,102,848

699,557

136,394,428-

136,394,428(2) Intersegment sales--

241,792

241,792(241,792)-

Total sales

122,592,022

13,102,848

941,350

136,636,221(241,792)

136,394,428

Segment income (loss)

9,608,081

92,812(340,201)

9,360,691(1,536,187)

7,824,503

Other

Total

Sales

Notes:

1. The adjustment of ¥(1,536,187) thousand to segment income (loss) includes ¥1,510,308 thousand in corporate
expenses, ¥94,473 thousand in losses that are not allocated to reportable segments, and ¥(68,594) thousand ineliminations due to intersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions of the parent
company, such as general affairs and accounting divisions.
2. Segment income (loss) is adjusted with the ordinary income of quarterly consolidated statements of income.

2. Impairment losses on fixed assets and goodwill by reportable segment[Significant impairment losses on fixed assets]:
There are no applicable matters to be reported.
[Significant changes in the amount of goodwill]:
The dispensing pharmacy segment includes nine dispensing pharmacy companies that have been acquired by theGroup. During the first nine months of the fiscal year, the increase in goodwill related to these companies was¥3,914,715 thousand.
II Nine months ended January 31, 2016 (May 1, 2015 to January 31, 2016)
1. Net sales and income (loss) by reportable segment
Reportable segments(Thousand yen)
Carried onquarterly
Adjustments
consolidated(Note) 1
statements ofincome(Note) 2

Dispensing
pharmacy

Drug andcosmetic store(1) Sales to third parties

151,884,602

15,601,084

1,910,159

169,395,846-

169,395,846(2) Intersegment sales--

242,067

242,067(242,067)-

Total sales

151,884,602

15,601,084

2,152,227

169,637,913(242,067)

169,395,846

Segment income (loss)

13,341,126(336,964)(786,910)

12,217,251(1,901,263)

10,315,987

Other

Total

Sales

Notes:

1. The adjustment of ¥(1,901,263) thousand to segment income (loss) includes ¥1,958,290 thousand in corporate
expenses, ¥7,299 thousand in losses that are not allocated to reportable segments, and ¥(64,327) thousand ineliminations due to intersegment transactions.
8

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2016

Corporate expenses consist mainly of expenses associated with the administrative divisions of the parent
company, such as general affairs and accounting divisions.
2. Segment income (loss) is adjusted with the ordinary income of quarterly consolidated statements of income.
2. Impairment losses on fixed assets and goodwill by reportable segment[Significant impairment losses on fixed assets]:
There are no applicable matters to be reported.
[Significant changes in the amount of goodwill]:
In the dispensing pharmacy business segment, the Company acquired 13 dispensing pharmacy companies and twoother companies. During the first nine months of the fiscal year, the increase in goodwill related to these companies was¥6,671,010 thousand.

9