Summary of Financial Statements for the First Quarter of Fiscal Year Ending April 2014
[Japan GAAP] (Consolidated)

August 28, 2013

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: +81-11-783-0189
Date of filing quarterly securities report:
September 13, 2013
Start of dividend payment:–

Supplementary documents for quarterly results:

No

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, 2014 (May 1, 2013 to July 31, 2013)(1) Consolidated operating results(Percentage figures show year-on-year changes.)
Net sales
Operating income
Ordinary income
Net income
Three months ended July 31, 2013
Three months ended July 31, 2012
(Note) Comprehensive income:Million yen%

Million yen%

Million yen%

Million yen%

41,214

13.7

2,384

5.7

2,484

6.7

1,516

66.3

0.3
2,328
2.4
¥1,478 million (+42.2%)¥1,039 million(-0.8%)

912(12.9)

36,257
6.8
2,255
Three months ended July 31, 2013:
Three months ended July 31, 2012:
Net income
per share

Diluted net income
per share
Yen

Yen

Three months ended July 31, 2013

95.16

–

Three months ended July 31, 2012

57.22

–

(2) Consolidated financial position
Shareholders’equity ratio

Net assets

Total assets

Net assets per
share

Million yen

Million yen%

Yen

As of July 31, 2013

99,57438,87839.0

2,436.13

As of April 30, 2013

95,83938,35640.0

2,403.43(Reference) Shareholders’ equity:

As of July 31, 2013: ¥38,833 million

As of April 30, 2013: ¥38,312 million

2. Dividends
Record dateYear ended April 30, 2013

End of firstquarterYen–

End of second
quarter
Yen
0.00

Dividend per share
End of third
quarter
Yen––
Year ending April 30, 2014
Year ending April 30, 2014
0.00
(forecast)(Note) Revision to the most recently announced dividend forecasts: No–

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, 2014 (May 1, 2013 to April 30, 2014)(Percentage figures show year-on-year changes.)

Million yen%

Million yen%

Million yen%

Million yen%

Net income
per shareYen

81,590

8.7

4,912

16.7

5,122

15.0

2,550

19.3

159.96

172,000

11.3

11,28016.3

11,650

13.2

6,000

18.2

376.31

Net salesFirst sixmonthsFull year

Operating income

Ordinary income

Net income(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 for the 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.:
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 July 31, 2013
stock):
2) Number of shares held in
As of July 31, 2013
treasury:
3) Average number ofThree months ended
shares outstanding:July 31, 201315,944,106 shares As of April 30, 201315,944,106 shares

3,416 shares As of April 30, 2013

3,366 shares

Three months ended
July 31, 2012

15,940,757 shares

15,940,723 shares*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 andExchange Act. As of the time of disclosure, this review procedure for quarterly financial 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 First Quarter of the Fiscal Year Ending April 30, 2014

Contents
1. Qualitative information on consolidated results for the period under review............................................................................ 2(1) Consolidated operating results ........................................................................................................................................... 2(2) Consolidated financial position ........................................................................................................................................... 2(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 sheets............................................................................................................................... 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

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AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2014

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, 2013 to July 31, 2013), the Japanese economy showedsigns of a steady recovery. Corporate earnings improved, driven mainly by a pickup in exports and an increase inproduction, while deflationary pressure on prices gradually eased.
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 three months of the fiscal year, net sales increased 13.7% year on year to ¥41,214 million, operating income
increased 5.7% to ¥2,384 million, ordinary income increased 6.7% to ¥2,484 million, and net income increased 66.3% to¥1,516 million.
Financial results by business segment are as follows.
(Dispensing pharmacy business)
In the dispensing pharmacy business, sales at existing dispensing pharmacies increased overall, supported by growthin average sales per prescription due to an increase in longer-term prescriptions.
In new dispensing pharmacy development, the Group mainly focused on opening specialist dispensing pharmacies
near hospitals, but also conducted M&A deals and carried out the comprehensive development of medical malls at sites
across Japan.
As part of efforts to boost profitability, the Group is implementing a far-reaching program to overhaul drug dispensing
processes and dispensing pharmacy management methods in order to boost the productivity of each dispensing
pharmacy. The Group plans to roll out this program across its entire network after a trial period at a number of model
dispensing pharmacies.
Meanwhile, the Group hired more than 250 new pharmacist graduates in April 2013. These new employees wereassigned to the Group’s dispensing pharmacies throughout Japan after completing a one-month joint training program.
As a result, for the first three months of the fiscal year, the dispensing pharmacy business reported sales and income
growth year on year, with net sales rising 14.2% to ¥36,524 million and segment income increasing 6.7% to ¥3,036
million.
During the period under review, the Group opened 18 new dispensing pharmacies, including those acquired throughM&A deals, and sold one dispensing pharmacy, resulting in a total of 577.
(Drug and cosmetic store business)
In the drug and cosmetic store business, consumer spending is recovering overall, but the Group continues to face achallenging market environment due to the emergence of new competitors from sector consolidation and realignment that
also extends to other sectors, as well as changes in the business environment for online sales of OTC drugs.
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 aiming to boost the sales capabilities of each store and improve profitability. 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 and cosmetics retailer, and implementing sales promotion methods that maximize thepotential of mobile devices through the use of SNS and other smartphone applications.
As a result, for the first three months of the fiscal year, the drug and cosmetic store business reported an increase insales of 9.1% year on year to ¥4,529 million. However, segment income declined 65.8% to ¥19 million.
During the period under review, the business closed the suburban drugstore ainz DAIEI SAKAEMACHI (Higashi-ku,
Sapporo City), resulting in a Group total of 60 stores.
(Other businesses)
Net sales and segment loss from other businesses were ¥160 million and ¥114 million, respectively.
(2) Consolidated financial position
The balance of total assets at the end of the first quarter increased by ¥3,734 million from the end of the previous fiscal
year to ¥99,574 million.
This mainly reflected an increase in inventories, other accounts receivable, property, plant and equipment such as landand buildings and goodwill, due to the Group’s business expansion through new store openings and M&A deals.
The balance of liabilities rose ¥3,213 million to ¥60,696 million, mainly reflecting an increase in accounts payable.
2

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2014

The balance of short- and long-term debt decreased by ¥588 million to ¥14,943 million.
Total net assets increased by ¥521 million to ¥38,878 million and the shareholders’ equity ratio declined 1.0 percentage
points to 39.0%.
(3) Forecast of consolidated financial results and other forward-looking information
The Group has made no change to its earnings forecasts for the first six months of the fiscal year and for the full fiscal
year, announced on May 28, 2013, in light of earnings trends at new stores and existing stores in the first three 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 first quarter, and multiplying theestimated effective tax rate by income before income taxes for the quarter.
In addition, deferred income taxes are included in income taxes.
(3) Changes in accounting principles, changes in accounting estimates, and restatement of revisions(Change in accounting policies that may be difficult to distinguish from changes in accounting estimates)
There are no applicable matters to be reported.

3

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2014

3. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(Thousand yen)

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
Deferred assets
Stock issuance cost
Total deferred assets
Total assets

4

Fiscal year endedApril 30, 2013
(As of April 30, 2013)

Three months ended
July 31, 2013
(As of July 31, 2013)

18,460,349
7,043,984
7,816,853
127,546955,372445,000
7,180,659
1,142,498(9,917)
43,162,346

19,524,328
5,211,222
9,474,824
132,377955,603
833,100
7,955,861
1,180,182(13,649)
45,253,849

8,247,806
6,030,803
3,271,425
17,550,035

8,466,215
6,335,433
3,477,782
18,279,431

19,574,539
1,031,265
20,605,804

20,530,277
1,116,172
21,646,449

2,789,730
946,439
6,985,755
4,066,340(267,829)
14,520,435
52,676,275

2,699,090
972,280
7,057,757
3,933,042(267,829)
14,394,341
54,320,221

1,296
1,296
95,839,919

790
790
99,574,861

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2014

(Thousand yen)

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
Allowance for retirement benefits
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
Unrealized holding gains on securities
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

5

Fiscal year endedApril 30, 2013
(As of April 30, 2013)

Three months ended
July 31, 2013
(As of July 31, 2013)24,084,746
7,483,090
2,427,308
7,906,269
1,098,611
12,929315,919
2,357,917
45,686,791

30,063,571
7,815,504
1,146,438
7,051,834
885,323
4,774
321,976
2,296,652
49,586,075

8,048,584
1,659,245
2,088,777
11,796,607
57,483,398

7,127,531
1,699,478
2,283,671
11,110,681
60,696,756

8,682,976
7,872,970
21,704,510(5,837)
38,254,620

8,682,976
7,872,970
22,265,042(6,047)38,814,942

57,85557,85544,04438,356,520
95,839,919

18,59018,59044,57238,878,105
99,574,861

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2014

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statements of income
Three months ended
July 31, 2012
(May 1, 2012 toJuly 31, 2012)

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
Losses on sales of investments in securities
Impairment losses on investments in securities
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

6(Thousand yen)Three months ended
July 31, 2013
(May 1, 2013 toJuly 31, 2013)

36,257,718
30,356,263
5,901,455
3,645,983
2,255,471

41,214,597
34,966,188
6,248,408
3,864,047
2,384,360

14,495
19,514
13,60828,87934,46947,454
158,423

15,686
19,551
2,169
20,17032,529130,424
220,533

35,482
17,712
9,281
23,19285,6692,328,225

28,157
21,291
11,76558,720119,935
2,484,958－
10,88150,000809
61,69013,8894,051
193,941
9,523
221,405

37,299107,387
209,958
310,000
17,089681,734
1,708,181
810,991
897,190(14,867)
912,057

20,897－－－
10,18431,081
2,675,282
1,157,779
1,517,503
527
1,516,976

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2014

Quarterly consolidated statements of comprehensive income
Three months ended
July 31, 2012
(May 1, 2012 toJuly 31, 2012)

Income before minority interests
Other comprehensive income
Unrealized holding gains (losses) on securities
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable to shareholders of
the parent
Comprehensive income (loss) attributable to minority
interests

7(Thousand yen)Three months ended
July 31, 2013
(May 1, 2013 toJuly 31, 2013)

897,190

1,517,503

142,604
142,604
1,039,794(39,265)(39,265)
1,478,238

1,054,662

1,477,711(14,867)527

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2014

(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 Three months ended July 31, 2012 (May 1, 2012 to July 31, 2012)
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

31,987,482

4,153,567

116,668

36,257,718－

36,257,718(2) Intersegment sales

－

－

3,306

3,306

(3,306)－

Total sales

31,987,482

4,153,567

119,975

36,261,025(3,306)36,257,718

Segment income (loss)

2,846,777

58,355(94,521)2,810,611(482,386)

2,328,225

Other

Total

Sales

Notes:

1. The adjustment of ¥(482,386) thousand to segment income (loss) includes ¥455,820 thousand in corporate
expenses, ¥5,287 thousand in losses that are not allocated to reportable segments, and ¥21,277 thousand ineliminations due to intersegment transactions.
Overall group 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]:
There are no applicable matters to be reported.

II Three months ended July 31, 2013 (May 1, 2013 to July 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

36,524,575

4,529,796

160,224

41,214,597－

41,214,597(2) Intersegment sales－－

46,118

46,118(46,118)－

Total sales

36,524,575

4,529,796

206,343

41,260,715(46,118)

41,214,597

Segment income (loss)

3,036,543

19,959(114,326)

2,942,175(457,216)

2,484,958

Other

Total

Sales

Notes:

1. The adjustment of ¥(457,216) thousand to segment income (loss) includes ¥431,887 thousand in corporate
expenses, ¥41,818 thousand in losses that are not allocated to reportable segments, and ¥(16,488) thousand ineliminations due to intersegment transactions.
Overall group expenses consist mainly of expenses associated with the administrative divisions of the parent
8

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2014

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]:
There are no applicable matters to be reported.

9