Summary of Financial Statements for the Second Quarter of Fiscal Year Ending April 2015
[Japan GAAP] (Consolidated)

November 26, 2014

Name of listed company:

AIN PHARMACIEZ 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, Senior Managing Director and Chief Director of Administration
TEL: +81-11-814-1000
Date of filing quarterly securities report:
December 15, 2014
Start of dividend payment:–

Supplementary documents for quarterly results:

Yes

Quarterly results briefing:

Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen.)
1. Consolidated results for the second quarter of fiscal year ending April 30, 2015 (May 1, 2014 to October 31, 2014)(1) Consolidated operating results(Percentage figures show year-on-year changes.)
Net sales
Operating income
Ordinary income
Net income
Six months ended October 31, 2014
Six months ended October 31, 2013
(Note) Comprehensive income:Million yen%

Million yen%

Million yen%

Million yen%

88,2206.3

4,230(15.6)

4,451(13.8)

2,525(12.9)

83,024
10.6
5,012
19.1
5,163
15.9
Six months ended October 31, 2014: ¥2,614 million(-9.3%)
Six months ended October 31, 2013: ¥2,881 million (+34.1%)

2,899

35.6

Net income
per share

Diluted net income
per share
Yen

Yen

Six months ended October 31, 2014

79.64

–

Six months ended October 31, 2013

90.94

–

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

(2) Consolidated financial position
Shareholders’equity ratio

Net assets

Total assets

Net assets per
share

Million yen

Million yen%

Yen

As of October 31, 2014

100,982

44,28743.7

1,392.82

As of April 30, 2014

101,382

42,24041.5

1,328.43(Reference) Shareholders’ equity:

As of October 31, 2014: ¥44,164 million

As of April 30, 2014: ¥42,122 million* On October 1, 2014, the Company conducted a 2-for-1 stock split of common shares. Net assets per share is calculated by deeming stock
splits to have occurred at the beginning of the previous fiscal year.

2. Dividends

Year ended April 30, 2014

End of firstquarterYen––

End of second
quarter
Yen
0.00

Dividend per share
End of third
quarterYen–

End of year

Full year

Yen

Yen

60.00

60.00

30.00

30.00

0.00

Year ending April 30, 2015
Year ending April 30, 2015
(forecast)(Note) Revision to the most recently announced dividend forecasts: No–* On October 1, 2014, the Company conducted a 2-for-1 stock split of common shares. The year-end dividend per share for the fiscal year
ending April 30, 2015 (forecast) is based on the number of shares after the stock split.

3. Consolidated financial forecasts for the fiscal year ending April 30, 2015 (May 1, 2014 to April 30, 2015)(Percentage figures show year-on-year changes.)

Million yen%

Million yen%

Million yen%

Million yen%

Net income
per shareYen

190,000

11.6

10,2601.5

10,700

1.1

5,500

4.6

173.46

Net sales
Full year

Operating income

Ordinary income

Net income(Note) Revision to the most recently announced consolidated financial forecasts: No* On October 1, 2014, the Company conducted a 2-for-1 stock split of common shares. Net income per share for the fiscal year ending April
30, 2015 is calculated by deeming stock splits to have occurred at the beginning of the current fiscal year.

*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 October 31,
shares (including treasury
2014
stock):
2) Number of shares held in
As of October 31,
treasury:
20143) Average number ofSix months ended
shares outstanding:
October 31, 2014

31,888,212 shares As of April 30, 2014

31,888,212 shares

180,572 shares As of April 30, 2014

179,832 shares

Six months ended
October 31, 2013

31,881,414 shares

31,708,190 shares* On October 1, 2014, the Company conducted a 2-for-1 stock split of common shares. Number of outstanding shares (common stock) 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 PHARMACIEZ INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2015

Contents
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 ............................................................................................................................ 5(1) Quarterly consolidated balance sheet ................................................................................................................................ 5(2) Quarterly consolidated statements of income and comprehensive income ........................................................................ 7
Quarterly consolidated statements of income .......................................................................................................................... 7
Quarterly consolidated statements of comprehensive income ................................................................................................. 8(3) Quarterly consolidated statements of cash flows ............................................................................................................... 9(4) Notes on quarterly consolidated financial statements .......................................................................................................11(Notes on the premise of a going concern) ...........................................................................................................................11(Notes on significant changes in the amount of shareholders’ equity) .................................................................................11(Segment Information, etc.) .................................................................................................................................................11

1

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2015

1. Qualitative information on consolidated results for the period under review(1) Consolidated operating results
During the first six months of the current fiscal year (May 1, 2014 to October 31, 2014), there were signs of weakness in
production activity and corporate earnings, partly due to the impact of a pullback in demand after the consumption tax
hike. However, the Japanese economy continued to recover at a moderate pace, with conditions continuing to improve inthe employment market.
In this economic environment, the AIN PHARMACIEZ 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
pushed ahead with the comprehensive development of medical malls and developed its urban drug and cosmetic store
business.
In the first six months of the fiscal year, net sales rose 6.3% year on year to ¥88,220 million, operating income
decreased 15.6% to ¥4,230 million, ordinary income decline 13.8% to ¥4,451 million, and net income decreased 12.9% to¥2,525 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 growth inaverage sales per prescription due to an increase in longer-term prescriptions.
Profitability is deteriorating in the dispensing pharmacy business due to higher operating costs and rising procurement
costs. The increase in operating costs reflects steps to improve pharmaceutical management and promote dispensing
services for home healthcare patients in response to dispensing fee revisions in April 2014.
The Group continued to open new pharmacies and sign M&A deals, aiming to expand the business to secure economies
of scale and improve dispensing pharmacy operations on a pharmacy by pharmacy basis. As a result, segment income inthe second quarter of the fiscal year recovered to almost the same level as a year earlier.
Also, the Group upgraded patient services, built links with local medical service providers, mainly in the area ofhome-based dispensing, and promoted wider use of generic drugs in order to fulfill the new role being asked of dispensing
pharmacies. As part of these efforts, the Group began operating the Ain Pharmacy NOBORITO (Tama Ward, Kawasaki) on
a 24-hour, 365-day basis from August 2014.
As a result, for the first six months of the fiscal year, the dispensing pharmacy business reported higher sales but lower
income year on year, with sales rising 7.2% to ¥79,261 million and segment income decreasing 10.8% to ¥5,710 million.
During the period under review, the Group opened 48 new dispensing pharmacies, including those acquired throughM&A deals, and closed five pharmacies, including relocations, resulting in a total of 659.
(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, as well as changes to restrictions on online sales of OTC drugs. Thesechanges in the business environment, together with the impact of a pullback in demand after the consumption tax hike,led to a decline in sales at existing stores compared with the same period a year earlier.
Against this backdrop, the Group is continuing to open urban drug and cosmetic stores under the ainz & tulpe brand,
particularly in urban areas with high customer traffic. Steps are also being taken to revitalize existing stores.
With ainz & tulpe, the Group is working to expand the customer base. These efforts include reinforcing merchandise
lineups to tailor them to each retail area and location, based on the brand’s store concept as a specialist drug andcosmetics retailer, and sales promotion using a range of different communication tools targeted at each customer
segment, such as emails for Ainz Point Club cardholders and communication apps such as LINE.
In addition, as of the end of the first six months of the fiscal year, the Group had secured permission for its drugstores in
Sapporo, Tokyo and Nagoya to provide duty-free services. This move was taken in response to new rules from October
2014 that expand the type of products on which overseas visitors to Japan are exempt from consumption tax. This led to
an increase in sales at stores in those areas compared with the same period a year earlier.
As a result, for the first six months of the fiscal year, the drug and cosmetic store business reported a decrease in salesof 2.6% year on year to ¥8,514 million. However, segment income surged 684.5% to ¥32 million.
During the period under review, there were no new store openings. However, four stores were closed mainly insuburban locations, resulting in a Group total of 55 stores.

2

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2015

(Other businesses)
Net sales and segment loss from other businesses were ¥444 million and ¥235 million, respectively.
(2) Consolidated financial position
The balance of total assets at the end of the second quarter decreased by ¥400 million from the end of the previous
fiscal year to ¥100,982 million.
This mainly reflected increases in inventories, property, plant and equipment such as buildings and structures, andgoodwill due to the Group’s business expansion through new store openings and M&A deals, and decreases in notes andaccounts receivable, deferred tax assets and loans.
The balance of liabilities declined ¥2,448 million to ¥56,694 million. This primarily reflected an increase in accounts
payable and decreases in accrued income taxes, deposits received and net defined benefit liability.
The balance of long- and short- term debts decreased by ¥1,226 million to ¥9,812 million.
Total net assets increased by ¥2,047 million to ¥44,287 million and the shareholders’ equity ratio improved 2.2
percentage points to 43.7%.
(Cash flows)
In the first six months of the fiscal year, cash and cash equivalents (“cash”) decreased by ¥256 million from the previous
fiscal year end to ¥18,479 million.
Cash flows from each activity and their relevant factors are as follows.
During the first six months of the fiscal year, net cash provided by operating activities was ¥4,822 million, comparedwith ¥9,324 million provided in the same period a year earlier. The main cash inflows were income before income taxes
and minority interests of ¥4,197 million, depreciation and amortization of ¥1,198 million, amortization of goodwill of ¥1,044
million. The main cash outflow was income taxes paid of ¥2,885 million.
Net cash used in investing activities amounted to ¥1,907 million, compared with ¥4,215 million used a year earlier. Thiswas mainly due to payments of ¥1,278 million for the acquisition of property, plant and equipment and intangible fixed
assets and ¥1,264 million for purchases of subsidiaries’ shares resulting in obtaining controls.
Net cash used in financing activities was ¥3,170 million, compared with ¥3,375 million used a year earlier. This was
mainly attributable to a net cash outflow of ¥1,904 million from short-term and long-term debt repayment and proceeds,
and cash dividends paid of ¥951 million.
(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, 2014, in light ofearnings trends at new stores and existing stores in the first six months of the fiscal year and future store opening plans.

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 net income before taxes for the consolidated fiscal year including the second 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[Changes in accounting principles]
From the first quarter of the fiscal year ending April 30, 2015, the Company has applied the “Accounting Standard for
Retirement Benefits” (Accounting Standards Board of Japan (ASBJ) Statement No. 26, May 17, 2012; herein, “theretirement benefit accounting standard”) and “Guidance on Accounting Standard for Retirement Benefits” (ASBJ
Guidance No. 25, May 17, 2012; herein, “the retirement benefit guidance”), specifically content stipulated in paragraph 35of the retirement benefit accounting standard and stipulated in paragraph 67 of the retirement benefit guidance. As aresult, the methods for calculating retirement benefit obligations and service costs have been revised in the following
respects: the method for attributing projected benefits to periods has been changed from the straight-line basis to thebenefit formula basis, and the method for determining the discount rate has been changed from a bond period based on
the number of years approximate to the average remaining working lives of employees to a single weighted-average
discount rate that reflects the periods until the expected payment of retirement benefits and the amount of projected
benefits for each such period.
For the application of the Accounting Standard and the Guidance, pursuant to past adjustments stipulated in paragraph
37 of the Accounting Standard , monetary effects accompanying changes in the method for calculating retirement benefit
3

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2015

liability and service costs, are adjusted with retained earnings at the beginning of the period starting from the first quarterof the consolidated fiscal year ending April 30, 2015.
As a result, net defined benefit asset at the beginning of the period for the first quarter of the fiscal year ending April 30,
2015 increased by ¥8,366 thousand, while net defined benefit liability decreased by ¥592,370 thousand. In parallel,
retained earnings increased by ¥386,510 thousand. The application of the new accounting standard had an immaterial
impact on operating income, ordinary income and net income before income taxes in the second quarter of the current
fiscal year.

4

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2015

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

Fiscal year endedApril 30, 2014
(As of April 30, 2014)

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
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

5(Thousand yen)Six months ended
October 31, 2014
(As of October 31, 2014)

18,846,760
6,718,670
9,578,858
180,570
1,245,406
708,297
5,679,761
1,376,190
44,334,515

18,549,771
6,214,256
9,905,115
177,108
989,539
757,811
5,725,615
1,174,098
43,493,316

9,962,423
6,698,782
2,922,726
19,583,933

10,254,827
6,890,094
3,050,856
20,195,778

20,017,440
1,111,957
21,129,397

20,323,151
1,196,469
21,519,620

2,559,386
1,068,129
8,081,230
4,866,487(240,307)
16,334,926
57,048,257
101,382,772

2,375,151
790,474
8,487,651
4,360,725(240,307)
15,773,695
57,489,095
100,982,411

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2015

Fiscal year endedApril 30, 2014
(As of April 30, 2014)

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
Remeasurement of defined benefit plans
Total accumulated other comprehensive income(loss)
Minority interests
Total net assets
Total liabilities and net assets

6(Thousand yen)Six months ended
October 31, 2014
(As of October 31, 2014)

28,002,426
6,535,438
3,079,805
8,686,700
1,149,395
11,934332,315
2,551,384
50,349,400

29,466,015
6,237,807
1,552,835
8,019,711
1,420,323
11,935332,3152,264,099
49,305,043

4,502,810
1,927,033
2,363,437
8,793,281
59,142,681

3,574,199
1,398,520
2,416,718
7,389,437
56,694,481

8,682,976
7,872,970
26,007,464(417,338)
42,146,073

8,682,976
7,872,970
27,967,678(419,202)
44,104,423

34,590(58,224)(23,633)
117,651
42,240,091
101,382,772

104,108(44,384)
59,724
123,782
44,287,930
100,982,411

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2015(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statements of income
Six months ended
October 31, 2013
(May 1, 2013 to
October 31, 2013

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
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
Insurance income
Other extraordinary income
Total extraordinary income
Extraordinary losses
Losses on disposal and sales of fixed assets
Directors’ retirement benefits
Other extraordinary losses
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in income (loss)
Net income

7(Thousand yen)Six months ended
October 31, 2014
(May 1, 2014 to
October 31, 2014)

83,024,578
70,366,857
12,657,720
7,645,115
5,012,604

88,220,201
75,597,751
12,622,449
8,392,240
4,230,208

36,53920,9198,499
41,537
66,897
207,854382,247

37,457
23,74523,936
81,732
73,611
131,033
371,51766,65942,67523,032
98,962
231,330
5,163,522

41,37442,06044,08022,588150,104
4,451,621

49,667
4,051
193,941
10,134
257,794

7,040
1,791
8,831

59,44043,714
103,154
5,318,161
2,421,312
2,896,849(2,558)2,899,407

72,695
106,960
82,873
262,529
4,197,922
1,666,657
2,531,265
6,131
2,525,134

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2015

Quarterly consolidated statements of comprehensive income
Six months ended
October 31, 2013
(May 1, 2013 to
October 31, 2013)

Income before minority interests
Other 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 shareholders of
the parent
Comprehensive income (loss) attributable to minority
interests

8(Thousand yen)Six months ended
October 31, 2014
(May 1, 2014 to
October 31, 2014)

2,896,849

2,531,265(15,085)

69,518(15,085)
2,881,763

13,84083,3582,614,624

2,884,321

2,608,493(2,558)6,131

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2015(3) Quarterly consolidated statements of cash flows
Six months ended
October 31, 2013
(May 1, 2013 to
October 31, 2013)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Increase in allowance for retirement benefits
Increase in defined benefit liability
Increase in allowance for bonuses to employees
Increase (decrease) in allowance for bonuses todirectors
Interest and dividend income
Interest expenses
Losses on disposal and sales of fixed assets
Decrease in accounts receivable
Increase in inventories
Increase in other accounts receivable
Increase in accounts payable
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Payments for purchases of property, plant andequipment and intangible fixed assets
Proceeds from sales of property, plant andequipment and intangible fixed assets
Payments for purchase of investments in securities
Proceeds from sales of investments in securities
Purchase of subsidiaries’ shares resulting in obtaining
controls
Payments for loans receivable
Proceeds from collections of loans receivable
Payments for time deposits
Proceeds from withdrawal of time deposits
Other, net
Net cash used in investing activities

9(Thousand yen)Six months ended
October 31, 2014
(May 1, 2014 to
October 31, 2014)

5,318,161
1,080,684
990,20773,585
127,168

4,197,922
1,198,524
1,044,474
61,863
241,578(994)

1(57,458)
66,65955,3892,840,730(813,637)(986,963)
3,924,305(840,959)
11,776,878
53,436(66,855)(2,439,440)
9,324,018(61,203)
41,37470,904
959,147(73,306)(41,802)861,459(810,753)
7,690,184
59,301(41,196)(2,885,789)
4,822,499(2,204,368)(1,278,176)

409,491

50,949(107,380)
299,729(30,180)
517,638(1,703,903)(1,264,857)(1,965,344)
824,862(6,900)27,602
210,398(4,215,812)(1,080,610)
1,496,342(13,500)
101,313(406,805)(1,907,886)

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2015

(Thousand yen)Six months ended
October 31, 2013
(May 1, 2013 to
October 31, 2013)

Cash flows from financing activities
Net decrease in short-term debts
Proceeds from long-term debts
Repayments of long-term debts
Repayments of lease obligations
Payments for purchase of treasury stock
Cash dividends paid
Net cash used in financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period(91,654)
124,578(2,216,669)(234,664)(209)(956,444)(3,375,064)
1,733,142
18,439,646
20,172,789

10

Six months ended
October 31, 2014
(May 1, 2014 to
October 31, 2014)(161,747)
100,000(1,843,169)(312,931)(1,863)(951,251)(3,170,963)(256,350)
18,735,445
18,479,095

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2015(4) 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 Six months ended October 31, 2013 (May 1, 2013 to October 31, 2013)
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

73,954,006

8,736,578

333,994

83,024,578-

83,024,578(2) Intersegment sales--

94,46994,469(94,469)-

Total sales

73,954,006

8,736,578

428,463

83,119,048(94,469)

83,024,578

Segment income (loss)

6,400,982

4,176(252,838)

6,152,321(988,799)

5,163,522

Other

Total

Sales

Notes:

1. The adjustment of ¥(988,799) thousand to segment income (loss) includes ¥939,630 thousand in corporate
expenses, ¥82,850 thousand in losses that are not allocated to reportable segments, and ¥(33,681) thousand ineliminations due to intersegment transactions.
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 eight dispensing pharmacy companies that have been acquired by theGroup. During the first six months of the fiscal year, the increase in goodwill related to these companies was¥1,405,598 thousand.
II Six months ended October 31, 2014 (May 1, 2014 to October 31, 2014)
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

79,261,223

8,514,066

444,910

88,220,201-

88,220,201(2) Intersegment sales--

158,682

158,682(158,682)-

Total sales

79,261,223

8,514,066

603,592

88,378,883(158,682)

88,220,201

Segment income (loss)

5,710,639

32,766(235,627)

5,507,778(1,056,157)

4,451,621

Other

Total

Sales

Notes:

1. The adjustment of ¥(1,056,157) thousand to segment income (loss) includes ¥1,050,263 thousand in corporate
expenses, ¥47,219 thousand in losses that are not allocated to reportable segments, and ¥(41,325) 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.
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AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2015

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 six dispensing pharmacy companies that have been acquired by the Group.
During the second six months of the fiscal year, the increase in goodwill related to these companies was ¥1,259,144
thousand.

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