Summary of Financial Statements for the First Quarter of Fiscal Year Ending April 2022
[Japan GAAP] (Consolidated)

September 2, 2021

Name of listed company:

AIN HOLDINGS INC.

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

Code number:

9627

URL:

https://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:
September 14, 2021–

Start of dividend payment:
Supplementary documents for quarterly results:

Yes (Supplementary materials for the quarterly results are disclosed on the
Company’s website appropriately as the financial statements.)

Quarterly results briefing:No(Amounts are rounded down to the nearest million yen.)
1. Consolidated results for the first quarter of fiscal year ending April 30, 2022 (May 1, 2021 to July 31, 2021)(1) Consolidated operating results(Percentage figures show year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Three months ended July 31, 2021
Three months ended July 31, 2020
(Note) Comprehensive income:Million yen%

Million yen%

Million yen%

Million yen%

75,011

5.0

2,611

124.3

2,864

73.1

1,309

54.6

71,463(1.4)
1,164(70.3)
1,654 (60.7)
Three months ended July 31, 2021: ¥1,274 million (+49.5%)
Three months ended July 31, 2020: ¥852 million (-60.9%)846(62.2)

Earnings
per share

Diluted earnings
per share
Yen

Yen

Three months ended July 31, 2021

37.10

–

Three months ended July 31, 2020

23.90

–

(2) Consolidated financial position
Total assets
As of July 31, 2021
As of April 30, 2021
(Reference) Shareholders’ equity:

Net assets

Shareholders’equity ratio

Million yen

Million yen%

203,552

113,77355.9

203,662

115,837

As of July 31, 2021: ¥113,699 million

56.8
As of April 30, 2021: ¥115,758 million

2. Dividends

Year ended April 30, 2021

End of firstquarter
Yen–

Dividend per share
End of third
quarterYen–
0.00

End of second
quarter
Yen–
Year ending April 30, 2022
Year ending April 30, 2022
0.00
(forecast)(Note) Revision to the most recently announced dividend forecasts: No–

End of year

Full year

Yen

Yen

55.00

55.00

55.00

55.00

3. Consolidated financial forecasts for the fiscal year ending April 30, 2022 (May 1, 2021 to April 30, 2022)(Percentage figures show year-on-year changes.)
Profit attributable toEarnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Million yen%
Million yen%
Million yen%
Million yen%
Yen
First six
147,900
1.8
5,300
35.0
5,600
24.0
2,780
5.7
78.47
monthsFull year
315,000
6.0
15,00037.2
15,500
22.5
8,300
23.9
234.28(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.:
Yes2) 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 July 31, 2021
stock):
2) Number of shares held in
As of July 31, 2021
treasury:
3) Average number ofThree months ended
shares outstanding:July 31, 2021

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

35,428,212 shares

200,911 shares As of April 30, 2021

891 shares

Three months ended
July 31, 2020

35,427,458 shares

35,293,974 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 First Quarter of the Fiscal Year Ending April 30, 2022

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 statement of income ....................................................................................................................... 6
Quarterly consolidated statement of comprehensive income.............................................................................................. 7(3) Notes on quarterly consolidated financial statements ........................................................................................................ 8(Notes on the premise of a going concern)......................................................................................................................... 8(Note 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 accounting policies)........................................................................................................................................ 8(Segment information, etc.) .............................................................................................................................................. 9

1

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2022

1. Qualitative information on consolidated results for the period under review(1) Consolidated operating results
During the first three months of the current fiscal year (May 1, 2021 to July 31, 2021), the Japanese economy continued
to face challenging conditions due to measures to control the COVID-19 pandemic, including state of emergencies in Tokyoand other regions and quasi-emergency measures throughout Japan.
In this economic environment, the Group put priority on ensuring the safety of patients, customers and employees bytaking rigorous steps to prevent infection in pharmacies and stores. The Group also made concerted efforts to ensure thecontinued provision of healthcare and retail services, including vaccinating employees against COVID-19 through aworkplace vaccination program.
In addition, in May 2021, the Group set key performance indicators (KPIs) and fiscal 2026 targets for important issues thatshould be addressed by the Group, which were identified through a materiality assessment process in December 2020.
Going forward, the Group will continue its efforts to realize sustainability management to support sustained growth and tocreate social, environmental and economic value.
In the first three months of the fiscal year, net sales increased 5.0% year on year to ¥75,011 million, operating profit
increased 124.3% to ¥2,611 million, ordinary profit increased 73.1% to ¥2,864 million, and profit attributable to owners ofparent increased 54.6% to ¥1,309 million.
Financial results by business segment are as follows.
(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 reinforcing
pharmaceutical management and guidance and home-based healthcare, backed by integrated and continuous monitoringof patient medication data through cooperation with local medical service providers and the use of patient medication
notebooks and other means. In addition, the pandemic and other trends have led to a growing need for different ways ofreceiving medicines and for contactless payments. To address these needs, the Group launched an additional trial in May
this year that allows patients to pick up prescription medicines from convenience store lockers and cashless payments wereintroduced from June.
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.
For the first three months of the fiscal year, the dispensing pharmacy business reported higher sales and profits comparedwith the same period a year earlier, supported by an increase in the number of prescriptions at existing pharmacies and astrong performance by pharmacies opened in the previous fiscal year. Sales increased 6.3% to ¥66,828 million and segment
profit rose 41.1% to ¥4,879 million.
During the period under review, the Group opened 12 new dispensing pharmacies, including those acquired through M&A
deals, and closed three pharmacies, resulting in a total of 1,074.
(Cosmetic and drug store business)
The cosmetic and drug store business continued to face a challenging market environment due to a renewed increase in
COVID-19 infections. The Group continued to strategically develop retail displays tailored to the characteristics of each store
and worked to improve convenience and service levels for customers using the official AINZ & TULPE WEBSTORE ecommerce site launched in May 2020.
As a result, for the first three months of the fiscal year, the cosmetic and drug store business reported sales of ¥5,063
million, up 17.9% year on year and segment loss of ¥503 million compared with the loss of ¥292 million a year earlier.
During the same period, the Group opened one AINZ & TULPE store, resulting in a total of 70 cosmetic and drug storesat the end of the period.
(Other businesses)
Net sales from other businesses decreased 27.0% year on year to ¥3,143 million and segment profit was ¥13 million,
compared with segment loss of ¥296 million in the same period a year earlier.
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020),
etc. from the beginning of the first quarter. For more details, please refer to “2. Quarterly consolidated financial statements
and major notes, (3) Notes on quarterly consolidated financial statements, (Changes in accounting policies) and (Segment
information, etc.).

2

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2022

(2) Consolidated financial position
The balance of total assets at the end of the first quarter decreased by ¥110 million from the end of the previous fiscal
year to ¥203,552 million. That mainly reflected declines for cash and deposits and accounts receivable - trade.
The balance of liabilities increased ¥1,953 million to ¥89,778 million. The main factors were increases in accounts payable- trade and deposits received, outweighing declines for accrued income taxes and outstanding borrowings.
The balance of short- and long-term borrowings decreased by ¥1,105 million to ¥10,861 million.
Total net assets decreased by ¥2,063 million to ¥113,773 million and the shareholders’ equity ratio decreased 0.9
percentage points to 55.9%.
(3) Forecast of consolidated financial results and other forward-looking information
There are no changes to the Group’s consolidated financial forecasts for the first six months or the fiscal year ending April
30, 2022, which were released on June 4, 2021.

3

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2022

2. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheet(Million yen)

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, 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

Fiscal year endedApril 30, 2021
(As of April 30, 2021)

Three months ended
July 31, 2021
(As of July 31, 2021)

55,271
13,47514,018
266
144
9,284
3,936
96,39853,576
12,33814,924
256
373
9,047
4,312
94,82916,270
10,3903,568
30,22916,345
9,976
3,795
30,11739,057
3,609
42,666

39,0793,708
42,7882,697
4,415
20,3198,680(1,743)34,368107,264
203,662

2,638
4,633
21,313
8,981(1,749)35,817
108,722
203,552

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2022

(Million yen)

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
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

Fiscal year endedApril 30, 2021
(As of April 30, 2021)

Three months ended
July 31, 2021
(As of July 31, 2021)

46,758
3,670
2,157
13,979
2,594
16
461
–
4,522
74,16049,094
3,354
1,593
15,969
1,964
9
–
437
4,394
76,816

8,297
3,329
2,037
13,66487,825

7,507
3,415
2,038
12,962
89,77821,89420,50073,506(3)
115,899

21,89420,50072,878(1,403)
113,870

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

(53)
(117)
(171)
73
113,773
203,552

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2022

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income

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
Insurance claim income
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sale of receivables
Rental expenses on real estate
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sale of businesses
Other
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Loss on temporary store closures
Loss on cancellation of rental contracts
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)Three months ended
July 31, 2020
(May 1, 2020 toJuly 31, 2020)
71,46361,644
9,819
8,655
1,164

Three months ended
July 31, 2021
(May 1, 2021 toJuly 31, 2021)
75,011
63,95011,060
8,448
2,611

11
26
4
40
46
231
138

10
16
2
231
43
13
–

–

2

96
596

107
426

11
18
44
31
105
1,654

11
19
101
41
174
2,864

12
37
2
52

26
0
–
27

101
52
–
68
222
1,484
649
835
(11)
846

30
–
118
37
186
2,704
1,400
1,304
(4)
1,309

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2022

Quarterly consolidated statement of comprehensive income

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 attributable to non-controllinginterests

7(Million yen)Three months ended
July 31, 2020
(May 1, 2020 toJuly 31, 2020)
835

Three months ended
July 31, 2021
(May 1, 2021 toJuly 31, 2021)
1,304

4
12
17
852
864

(40)
10
(30)
1,274
1,279

(11)

(4)

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2022

(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)
The Company is repurchasing 200,000 shares in accordance with a resolution approved by the Board of Directors at a
meeting on June 7, 2021. As a result of the repurchase, the Company’s treasury shares increased by ¥1,400 million during thefirst quarter, resulting in a balance of ¥1,403 million at the end of the period.
(Application of specified accounting methods for the preparation of quarterly consolidated financial statements)
To calculate tax expenses, the effective tax rate on income before income taxes for the consolidated fiscal year after theapplication of tax effect accounting is reasonably estimated and the estimated rate is applied to income before income taxes
for the quarterly 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 first quarter of the fiscal year ending April 30, 2022.
Under the new standard, the Company recognizes revenue when promised goods or services are transferred to a customer,
with the amount expected to be received upon exchange of the goods or services recognized as revenue.
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, the Company previously
booked the amount equivalent to the number of points expected to be redeemed in the future as allowance for point cards andallowance for point cards was recorded under selling, general and administrative expenses. Under the new accounting
standard, the Company identifies points awarded as performance obligations and allocates the transaction price based on thestand-alone selling price calculated by taking into actual redemption rates and other factors. As a result of the change, somesales 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 first quarter, the cumulative effect of the retroactive application is added to or subtracted from retained
earnings at the beginning of the first quarter and the new accounting policy is applied to balances at the beginning of said
period.
As a result, in the first quarter, the application of the accounting standard reduced sales by ¥247 million, reduced selling,
general and administrative expenses by ¥248 million and increased operating profit, ordinary profit and income before income
taxes each by ¥1 million. In addition, the balance of retained earnings at the start of the fiscal year increased by ¥10 million.
As a result of the application of the Revenue Recognition Standard, “provision for point card certificates” included in“current liabilities” in the consolidated financial statements for the previous fiscal year has been included in “contract liabilities”
from the first quarter of 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. Furthermore, in accordance with the transitional treatment stipulated in Paragraph 28-15 of the AccountingStandard for Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020), information on the breakdown ofrevenue generated from contracts with customers for the first quarter of the previous fiscal year is not shown.
(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 first quarter. In accordance with the transitional
treatment stipulated in Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the “AccountingStandard 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’squarterly consolidated financial statements.

8

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2022

(Segment information, etc.)
I Three months ended July 31, 2020 (May 1, 2020 to July 31, 2020)
1. Net sales and income (loss) by reportable segment
Reportable segments
Adjustments(Note) 1(Million yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses(1) Sales to third parties

62,886

4,296

4,280

71,463－

71,463(2) Intersegment sales

1

－

27

29

(29)

－

62,888

4,296

4,308

71,492(29)

71,463

3,458

(292)

(296)

2,869

(1,214)

1,654

Total

Sales

Total sales
Segment profit (loss)
Notes:

1. The adjustment of ¥(1,214) million to segment profit (loss) includes ¥1,491 million in corporate expenses, ¥(299)million in (income) loss that is not allocated to reportable segments, and ¥22 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.

9

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2022

I Three months ended July 31, 2021 (May 1, 2021 to July 31, 2021)
1. Net sales and income (loss) by reportable segment
Reportable segments
Adjustments(Note) 1(Million yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses(1) Sales to third parties

66,828

5,063

3,119

75,011－75,011(2) Intersegment sales

－

－

23

23

(23)

－

66,828

5,063

3,143

75,034(23)

75,011

4,879

(503)

13

4,389

(1,524)

2,864

Total

Sales

Total sales
Segment profit (loss)
Notes:

1. The adjustment of ¥(1,524) million to segment profit (loss) includes ¥1,792 million in corporate expenses, ¥(347)
million in (income) loss that is not allocated to reportable segments, and ¥79 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.
3. Changes in reportable segments
As explained in Changes in accounting policies, the accounting treatment for revenue recognition has changed due tothe application of the Accounting Standard for Revenue Recognition, etc. from the beginning of the first quarter. As result,the calculation method for profit and loss in business segments has also changed.
Compared with the previous method, in the first quarter, the new method reduced sales in the cosmetic and drug store
business segment by ¥231 million and increased segment profit by ¥1 million, and reduced sales in the other businesses
segment by ¥16 million.

10