Summary of Financial Statements for Fiscal Year Ended April 2014
May 27, 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 the ordinary general meeting of shareholders:
July 30, 2014
Date of scheduled payment of dividends:

July 31, 2014

Date of filing securities report:

July 31, 2014

Supplementary documents for this summary of financial statements:

Yes

Explanation meeting for financial results:

Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen.)

1. Consolidated results for the fiscal year ended April 2014 (from May 1, 2013 to April 30, 2014)(Percentage figures show year-on-year changes.)(1) Consolidated operating results
Net sales
Million yen

Operating income%

170,225
Year ended April 30, 2013 154,560

10.1
8.2

Year ended April 30, 2014

(Note) Comprehensive income:Million yen

Ordinary income%

10,113
9,701

4.3
(5.4)

Million yen

10,587
10,292

Year ended April 30, 2014: ¥5,309 million (- 1.8%)
Year ended April 30, 2013: ¥5,407 million (+ 9.3%)

Net income
per share

Diluted net income
per share

Return on equity

330.08318.37

－
－

13.1
14.1

Yen

Year ended April 30, 2014
Year ended April 30, 2013

Yen%

Net income%

Million yen

2.9
(2.4)

%

5,259
5,075

3.6
3.6

Ordinary income
to total assets

Operating income
to net sales

10.7
11.3

5.9
6.3

%

%

(Reference) Equity in earnings of affiliates: Year ended April 30, 2014: ¥ － million, Year ended April 30, 2013: ¥ － million(2) Consolidated financial position
Total assets

Net assets

Million yen

Million yen

101,382
95,839As of April 30, 2014
As of April 30, 2013

Shareholders’ equity ratio%

42,24038,356(Reference) Equity capital: As of April 30, 2014: ¥42,122 million,

2. Dividends

Cash flows fromfinancing activities

Million yen

14,662
10,203

Million yen(7,749)(8,503)Yen

2Q-endYen

Year ended April 30, 2013
Year ended April 30, 2014

－
－

0.00
0.00

Year ending April 30,
2015 (forecast)

－

0.00

3Q-endYen

Year-end
Yen

Cash and cash
equivalents
at end of year

Million yen(6,617)803

Dividends per share
1Q-end2,656.86
2,403.43

April 30, 2013: ¥38,312 million

Cash flows frominvesting activities

Million yen

Year ended April 30, 2014
Year ended April 30, 2013

Yen

41.5
40.0

(3) Consolidated cash flows

Cash flows fromoperatingactivities

Net assets per share

Annual
Yen

－
－

60.00
60.00

60.00
60.00

－

60.00

60.00

Total
dividends(annual)Million yen

956
951

18,735
18,439Dividends Dividends on
payout ratio net assets(consolidated) (consolidated)
%
%

18.8
18.2

17.3

2.7
2.4

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

Net sales

Operating income

Ordinary income

Net income
per share

Net income

Million yen%

Million yen%

Million yen%

Million yen%

Yen

First half

89,2607.5

3,590(28.4)

3,830(25.8)

1,970(32.1)

124.26

Full year

190,000

11.6

10,2601.5

10,700

1.1

5,500

4.6

346.91* Notes(1) Major changes in subsidiaries during the fiscal year (changes in specified subsidiaries resulting in changes inscope of consolidation): No
Newly consolidated: －Excluded: －(2) 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.: Yes
2) Changes in accounting principles other than 1):
No3) Changes in accounting estimates:
No4) Restatement of revisions:No(3) Number of outstanding shares (common stock):1) Number of outstanding
shares (including treasury As of April 30, 2014
stock):
2) Number of shares held in
As of April 30, 2014
treasury:
3) Average number of
Fiscal year endedApril 30, 2014
shares outstanding:

15,944,106 shares As of April 30, 201315,944,106 shares

89,916 shares As of April 30, 2013

3,366 shares

15,933,490 sharesFiscal year endedApril 30, 201315,940,744 shares*Status of execution of the audit procedures of financial statements:
The procedure for the review of the financial statements under the Financial Instruments and Exchange Act was notcomplete at the moment of disclosing this summary.
*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 Fiscal Year Ended April 30, 2014

Contents of Attachment
1. Analysis of Operating Results and Financial Position ................................................................................... 2(1) Analysis of operating results ........................................................................................................................................ 2(2) Analysis of financial position........................................................................................................................................ 4(3) Basic policies for profit distribution, and dividends for the current fiscal year and the next fiscal year .............. 5(4) Business and other risks .............................................................................................................................................. 7

2. State of the Group ............................................................................................................................................ 10
3. Management Policies ....................................................................................................................................... 12(1) Basic management policies of the Company ............................................................................................................ 12(2) Target management indicators ................................................................................................................................... 12(3) The Group’s medium- to long-term management strategies ................................................................................... 12(4) Issues to be addressed ............................................................................................................................................... 12

4. Consolidated Financial Statements ................................................................................................................ 13(1) Consolidated balance sheet........................................................................................................................................ 13(2) Consolidated statement of income and comprehensive income ............................................................................ 15(3) Consolidated statement of changes in net assets .................................................................................................... 18(4) Consolidated statement of cash flows ....................................................................................................................... 20(Segment Information, etc.) .............................................................................................................................................. 22-1-

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

1. Analysis of Operating Results and Financial Position(1) Analysis of operating results
During the fiscal year ended April 30, 2014, the Japanese economy recovered steadily, despite signs of apullback in demand after spiking ahead of the consumption tax hike. The upturn in the economy reflected an
improvement in corporate earnings and employment conditions, as well as a broader-based pickup in capital
expenditure and other areas.
In this economic environment, the AIN PHARMACIEZ Group (the Group) worked to expand its business by
opening new dispensing pharmacies and using M&A, while also pushing ahead with the comprehensive
development of medical malls and the urban drug and cosmetic store business. The Group also aimed to boost
profitability by revitalizing existing stores and dispensing pharmacies.
For the fiscal year under review, the Group reported net sales of ¥170,225 million, an increase of 10.1% year
on year, reflecting the opening of new dispensing pharmacies and M&As. Ordinary income rose 2.9% to¥10,587 million and net income increased 3.6% year on year to ¥5,259 million.
As of the end of the fiscal year, the number of stores in the Group totaled 675, a net increase of 54 stores fromthe end of the previous fiscal year.
Performance by business segment was as follows.
(Dispensing pharmacy business)
In the dispensing pharmacy business, sales continued to rise at existing dispensing pharmacies, supported
by growth in average sales per prescription due to an increase in longer-term prescriptions.
Under dispensing fee revisions in April 2014, the dispensing fee system is being revised to reflect thefunctions of dispensing pharmacies in order to improve pharmaceutical management and promote dispensing
services for home healthcare patients. The revisions are also designed to encourage even wider use of genericdrugs.
For some time, the Group has been preparing for the impact of these dispensing fee revisions through apharmacy-led project that reviews and rebuilds all dispensing processes at each dispensing pharmacy in orderto improve dispensing pharmacy efficiency and upgrade patient services. The Group is also building links withlocal medical service providers, mainly in the area of home-based dispensing, and working to promote wider
use of generic drugs in order to fulfill the new roles being asked of dispensing pharmacies.
In business development, the Group continued to push ahead with business expansion by opening new
dispensing pharmacies, primarily dispensing pharmacies near hospitals and medical malls, and through M&A
deals. In medical mall development, the Group was involved in the development of one of Japan’s largest
medical floors, in ABENO HARUKAS, a new mixed-use skyscraper (Abeno-ku, Osaka; 60 above ground floors,
five below ground). This culminated in the opening of a new medical mall dispensing pharmacy called Ain
Pharmacy ABENO HARUKAS in April 2014.
The dispensing pharmacy business reported net sales of ¥151,472 million, an increase of 10.3% year on
year, and segment income of ¥12,772 million, up 0.9%. During the fiscal year under review, the Group opened
62 dispensing pharmacies, including those operated by 13 companies that became Group subsidiaries throughM&A deals, and closed six dispensing pharmacies, resulting in a total of 616.

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AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

(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 realignment that also extends to other business sectors, as well as regulatory changes
related to online sales of OTC drugs.
Against this backdrop, the Group continued to open ainz & tulpe urban drug stores to meet consumer needs.
Ainz & tulpe is a specialist, highly original drug and cosmetic store brand that the Group is rolling out in urban
areas with high customer traffic. The Group continued to reinforce merchandising lineups at ainz & tulpe stores,
particularly drug and cosmetic products, in order to boost sales capabilities and increase the gross margin.
In sales promotion, the Group worked to expand the customer base using a range of different communication
tools tailored to customer segments, such as emails for Ainz Point Club members and communication apps
such as LINE and Twitter.
During the fiscal year under review, the Group opened a number of ainz & tulpe format stores. These
included ainz & tulpe SANNOMIYA SANKITA-DORI (Chuo-ku, Kobe), ainz & tulpe ABENO solaha (Abeno-ku,
Osaka) and ainz & tulpe NU chayamachi (Kita-ku, Osaka), opened as part of efforts to build a dominant positionin the Kyoto-Osaka-Kobe area. The Group also closed five stores, mainly suburban stores, resulting in a Group
total of 59 stores at the end of the fiscal year.
As a result, the drug and cosmetic store business reported net sales of ¥17,985 million, an increase of 7.5%
year on year, and segment income of ¥23million, up 65.8%.
(Other businesses)
Net sales of other businesses totaled ¥767 million, an increase of 43.9% year on year, and segment losses
totaled ¥218 million, an improvement of ¥179 million year on year.
In the fiscal year ending April 30, 2015, the dispensing pharmacy business will continue to develop new
dispensing pharmacies near hospitals and medical mall dispensing pharmacies, and actively seek M&A
opportunities. Also, the drug and cosmetic store business will work to expand its business by continuing toopen ainz & tulpe urban drug stores.
In the dispensing pharmacy business, existing dispensing pharmacies are struggling to maintain profitability
due to factors such as higher procurement costs after the hike to consumption tax and greater demands onthem to provide patients with high-quality services.
The Group will continue to implement its strategy of expanding the business through new store openings
and M&As in order to maximize economies of scale. Also, the Group will work to improve profitability at
existing dispensing pharmacies by rolling out its project to revitalize pharmacies, and strengthen thecapabilities of dispensing pharmacies by upgrading pharmacist recruitment and training programs andinvesting in facilities. Using its specialist generic drug wholesale subsidiary, WHOLESALE STARS Co., Ltd.,the Group will also promote wider use of generic drugs in order to secure profits.
In the drug and cosmetic store business, the Group will continue to strengthen merchandise lineups at eachstore, enhance the appeal of its stores as specialist drug and cosmetics formats, and boost the gross margin.
In sales promotion, the Group will continue to use mobile communication tools and other approaches toexpand the customer base, while also boosting the communication capabilities of the ainz & tulpe format.
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AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

In addition, the Group will continue to open new stores in station retail areas and adjacent facilities, where itis easier to attract customers. This will be combined with a scrap & build approach for existing stores, using
store renovations and closures to revitalize the store network.
Based on these initiatives, the Group forecasts net sales for the fiscal year ending April 30, 2015 of¥190,000 million, up 11.6% year on year, ordinary income of ¥10,700 million, up 1.1%, and net income of¥5,500 million, an increase of 4.6%

(2) Analysis of financial position
1) Assets, liabilities and net assets
Consolidated current assets at the end of the fiscal year under review increased by ¥1,172 million to ¥44,334
million compared to ¥43,162 million at the end of the previous fiscal year.
This mainly reflected cash on hand and in banks of ¥18,846 million, an increase of ¥386 million compared withthe previous fiscal year, merchandise of ¥9,578 million, an increase of ¥1,762 million due to business expansion,and other accounts receivable of ¥5,679 million, down ¥1,500 million.
Fixed assets at the end of the fiscal year under review increased by ¥4,371 million to ¥57,048 million
compared to ¥52,676 million at the end of the previous fiscal year.
This was mainly due to an increase in fixed assets related to investment in new stores and expansion in theasset base at consolidated subsidiaries that became part of the Group through M&A deals. Property, plant andequipment, mainly buildings and structures, increased by ¥2,033 million to ¥19,583 million, while goodwill rose¥442 million to ¥20,017 million.
In addition, investments and other assets increased by ¥1,814 million year on year to ¥16,334 million, chiefly
reflecting an increase in deposits and guarantees.
Liabilities increased by ¥1,659 million to ¥59,142 million compared to ¥57,483 million at the end of the previous
fiscal year.
This primarily reflected accounts payable of ¥28,002 million, up ¥3,917 million year on year, short-term debt of¥6,535 million, down ¥947 million, and long-term debt of ¥4,502 million, down ¥3,545 million.
As a result of the above, the balance of current liabilities increased by ¥4,662 million from the previous
year-end balance of ¥45,686 million to ¥50,349 million, and the balance of long-term liabilities decreased by¥3,003 million from the previous year-end balance of ¥11,796 million to ¥8,793 million.
Net assets increased by ¥3,883 million to ¥42,240 million compared to ¥38,356 million at the end of theprevious fiscal year.
Retained earnings increased ¥4,302 million year on year to ¥26,007 million due to growth in surplus funds,
while treasury stock increased ¥411 million to ¥417 million due to a share buyback.
As a result of the above factors, shareholders’ equity ratio improved 1.5 percentage points to 41.5%,
compared with 40.0% at the end of the previous fiscal year.
2) Cash flows
In the fiscal year under review, cash on hand and in banks (“cash”) increased ¥295 million (1.6%) year on
year to ¥18,735 million. This reflected operating cash flow generated by dispensing pharmacy and drug andcosmetic store businesses, which was mainly used to actively invest in new store openings and M&A. Somecash was also retained to provide constant access to a certain level of funds.

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AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

Cash flows from each category and their relevant factors are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥14,662 million, an increase of 43.7% year on year.
The main items that were positive for cash flow were income before income taxes and minority interests of¥10,265 million, as well as depreciation and amortization of ¥2,258 million, amortization of goodwill of ¥2,033
million and increase in notes and accounts payable-trade of ¥3,075 million related to business expansion
through new store openings and M&A.
The main items that were negative for cash flow was income taxes paid of ¥4,603 million.
(Cash flows from investing activities)
Net cash used in investing activities totaled ¥7,749 million, a decrease of 8.9% year on year.
This mainly reflected payments of ¥3,460 million for purchases of property, plant and equipment related tothe opening of new urban drug stores and dispensing pharmacies, and ¥2,410 million for purchases of sharesin subsidiaries due to changes in the scope of consolidation related to shares acquired in 13 companies
through M&A deals.
(Cash flows from financing activities)
Net cash used in financing activities totaled ¥6,617 million, compared with cash of ¥803 million provided theprevious fiscal year.
This was mainly attributable to net short-term debt repayment of ¥318 million and net long-term debt
repayment of ¥4,373 million.
Purchase of treasury stock of ¥411 million and cash dividends paid of ¥956 million also had a negative
impact on cash flows from financing activities.
Changes in the Group’s cash flow indicators are shown below.
Year ended April

Year ended April

Year ended April

Year ended April

30, 2011

30, 2012

30, 2013

30, 2014

Shareholders’ equity ratio (%)

38.3

39.2

40.0

41.5

Equity ratio based on market value (%)

64.5

79.6

79.3

70.3

Debt redemption term (years)

1.7

1.1

1.7

0.9

Interest coverage ratio (times)
31.4
73.6
70.3
143.0
Notes: Shareholders’ equity ratio = Equity capital / total assets
Equity ratio based on market value = market capitalization / total assets
Debt redemption term = interest-bearing debt / operating cash flows
Interest coverage ratio = operating cash flows / interest paid
*All indicators are calculated based on consolidated financial data.
*Interest-bearing debt includes all liabilities recorded on the balance sheet on which interest is being paid.
*Operating cash flows and interest paid are calculated using the cash flows from operating activities and the interest paid on
the consolidated statements of cash flows.

(3) Basic policies for profit distribution, and dividends for the current fiscal year and the next fiscal year
The Company considers the return of profits to shareholders as an important management issue. Our basic
policy is to repay our investors proportionate to the profit we make, and to maintain these at stable levels.
Internal reserves are held to strengthen the corporate structure and in preparation for new store openings
and future development of the business. We will make effective use of these funds to generate profits to be
returned to shareholders in the future.
The Company’s basic policy is to pay dividends from retained earnings once per year at the end of the fiscal-5-

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

year. The year-end dividend to be paid is determined at the ordinary general meeting of shareholders, andinterim dividends are set at the Board of Directors’ meeting. Further, the Company has stated in its Articles ofIncorporation that “When approved by the Board of Directors, interim dividends may be paid based on a record
date of October 31 each year.”
For the fiscal year under review, the Company plans to pay a dividend from retained earnings of ¥60 per
share, the same level as the dividend for the previous fiscal year.
In view of profit forecasts, plans for investment and other factors, the Company intends to pay an ordinary
dividend from retained earnings of ¥60 per share for the fiscal year ending April 30, 2015, the same level as theplanned dividend for the fiscal year under review.

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AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014(4) Business and other risks
The following factors may affect the Group’s operating results, stock price and financial position. Statementsin the text referring to the future reflect the judgment of the Group at the end of the fiscal year under review.
1) Laws and regulations(i) Regulations under the Pharmaceutical Affairs Law and other laws
We operate dispensing pharmacy business under various permits, licenses, registrations and notifications
including those set forth by the Pharmaceutical Affairs Law, the Health Insurance Law, and the Pharmacists
Law, under the supervision of the Ministry of Health, Labour and Welfare, and of prefectural health andwelfare departments.
The drugstore business in our drug and cosmetic store business also involves drug sales, which aresimilarly regulated under the Pharmaceutical Affairs Law.
The main ones are as follows.
Approval, registration, appointment,
license or notification

Term ofvalidity

Related law or ordinance

Permit to open a pharmacy

6 years

Pharmaceutical Affairs
Law

Insurance pharmacy certification

6 years

Health Insurance Law

License to sell narcotic drugs
Notification of sales of medical
equipment
Business selling highly controlled
medical equipment
Medical product sales permit

Narcotics andPsychotropics Control Law
Pharmaceutical Affairs
Indefinite
Law
Pharmaceutical Affairs
6 years
Law
Pharmaceutical Affairs
6 yearsLaw
2 years(Note)

GrantorPrefectural Governors
Prefectural Social
Insurance Bureau
Heads
Prefectural Governors
Prefectural Governors
Prefectural Governors
Prefectural Governors,
etc.

Note: Under Article 25 of the Pharmaceutical Affairs Law, medical product sales permits fall into the three categories:
Store-based drug sellers, drug sellers by household distribution and drug sellers by wholesale distribution. The Group’s
drug and cosmetic store business has a permit for store-based drug sales under this law. If the Group becomes the
subject of an order of revocation or suspension of business license by the competent authorities due to an act
committed in the Group’s dispensing pharmacy and drug and cosmetic store businesses, which constitutes a violationof law set forth in Paragraph 1, Article 75 of the Pharmaceutical Affairs Law, items in Article 80 of the Health Insurance
Law, or Paragraph 1, Article 51 of the Narcotics and Psychotropic Control Law, the Group’s performance may beaffected.

(ii) Easing of drug sales regulations
Under the “Law for Partial Revision of the Pharmaceutical Affairs Law” (Law No. 69, June 14, 2006), which
includes a review of the sales system for over-the-counter (OTC) drugs; OTC drugs are categorized into
three groups by risk. It has thus possible to sell the two lower-risk categories of drugs as newly registeredsellers, not requiring a pharmacist. Factors such as the entry into the market of firms from other industries asa result of a continuing trend in the future to deregulate drug sales may affect the Group’s performance.
2) Details of business
The Group’s dispensing pharmacy business operates a chain of dispensing pharmacies. These dispensing
pharmacies are mainly located near major hospitals (in order to focus on demand from patients who haveprescriptions written by those hospitals) and in medical malls developed by the Group (in order to focus on
demand from patients who have prescriptions written by those mixed medical facilities).
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AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

As the dispensing pharmacy business accounted for 89.0% of net sales in the fiscal year under review, weplan to continue the multi-store operation mainly based on dispensing pharmacies. Accordingly, the Group’s
operating results may be affected by the success or failure of the store opening policies and by trends in store
openings by competitors in the same industry.
Furthermore, sales of dispensing pharmacies significantly depend on the medical institutions that write
prescriptions. Therefore, uncertainties such as the issuance of non-hospital prescriptions by the medical
institutions or suspension / discontinuation of operations thereof may affect the Group’s performance.
3) Industry trends
The revenues in our dispensing pharmacy business come from pharmacy operations involving thedispensing and supplying of drugs based on prescriptions. The drug prices and dispensing fees are set by the
Ministry of Health, Labour and Welfare. As a way to contract medical expenses, both medical treatment feesand drug prices are being revised incrementally. In the future as well, changes in profit structure resulting fromfactors such as revisions in the medical treatment fee system could continue to affect the Group’s performanceand financial position.
4) Securing qualified staff
Dispensing pharmacies and drugstores (Stores for Category 1 Drugs) are required by the Pharmaceutical
Affairs Law to have a pharmacist on site; the Pharmacists Law stipulates that the dispensing of drugs must be
handled by a pharmacist. The Group continues to have a policy of expansion by aggressively opening newstores, but if it becomes difficult to secure qualified pharmacists, this could affect our store openings and theGroup’s performance.
5) Risks of loss of trust in the Company(i) Dispensing operation
In our dispensing pharmacy business, pharmacists dispense and supply prescription drugs that affect thehuman body. This business carries the risk that medical accidents might be caused through dispensing
errors.
The Group recognizes that any medical accidents could have a severely damaging effect on society’s
confidence in the Group, and we place the highest priority on measures to avoid the risk from all aspects.
Primary risk prevention measures are as follows.
•

Training programs for newly graduated pharmacists and mid-career pharmacists when joining theCompany•

A continuing training program aimed at improving skills of pharmacists•

Pharmacy manager conferences attended by all pharmacy managers, to nurture supervisors•

Development of a dispensing error prevention system (PhAIN) that uses Personal Digital Assistants(PDAs) developed with a dispensing equipment manufacturer. Development and introduction ofpharmacy equipment that makes use of information technology, such as the automation ofdispensing operations.

•

Use of in-house manuals for the dispensing operation and a system of observing rules set by theInternal Audit Office-8-

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014•

Establishment of a Safety Policy Office specializing in measures to prevent dispensing errors(ii) Protection of personal data
We possess patient data in the dispensing pharmacy business, including medical histories andprescription information, and we possess personal data in the drug and cosmetic store business obtained
from the Ainz Point Club Card.
The Group has completed development of personal information protection systems and rules for thehandling of such information. The Company acquired the Privacy Mark accreditation in the healthcare,
medical and social service fields.
However, we believe it is possible that any accidental or illegal leakage of personal data may not only
affect the Group’s performance but also lead to a loss of society’s confidence in the Group.
6) Risk in business strategy
We have promoted the expansion of the business scale of dispensing pharmacies through actively
promoting new store openings and M&A.
Our basic policies regarding M&A strategy require us to carefully examine target companies and determine
the amount to be paid for acquisitions thereof in order to stably secure a profitability level that exceeds theamortization of goodwill to be incurred. If matters do not go as planned, however, we may incur losses on
valuation of shares in subsidiaries and impairment losses on goodwill, which may have an adverse impact on
the Group’s operating results and financial position.
7) Interest rate risks
In the Group’s promotion of business expansion based on actively promoting new store openings and M&A,
costs for ordinary store openings are covered by internal funds within the range of operating cash flow, while inlarge-scale M&A, costs are sometimes financed by borrowings from financial institutions.
In order to ensure flexible access to funds to support these activities, the Group maintains a certain level ofliquidity on its balance sheet. As of the end of the fiscal year under review, cash on hand and in banks totaled¥18,846 million, compared with a total balance of short- and long-term debt of ¥11,038 million.
We focus on possibility of return on investment and seek to reduce interest-bearing debts through efficientinvestment in implementing M&A deals. However, if the Group fails to secure an adequate return on its M&A
investment, or due to interest rate fluctuations associated with conditions in financial market, the Group’s
financial position and operating results including interest payable may be affected.

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AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

2. State of the GroupThe Group consists of AIN PHARMACIEZ INC. (the Company), 24 subsidiaries and one affiliated company.
(1) Dispensing pharmacy business
The Company operates and franchises dispensing pharmacies, and engages in consulting on the opening ofdispensing pharmacies.
The subsidiaries AIN MEDIO Inc., DAICHIKU Co., Ltd., Asahi Pharmacy Co., Ltd., and 18 other subsidiaries
operate dispensing pharmacies.
MEDIWEL Corp. is engaged in a medical-related consulting business and staff dispatching/introduction,
primarily of doctors and pharmacists, Medical Development Co., Ltd. Is engaged in a medical-related consulting
business, and WHOLESALE STARS Co., Ltd. Sells generic drugs and other merchandise.
(2) Drug and cosmetic store business
The Company engages in the management of drugstores (sales of drugs, quasi-drugs, cosmetics, food,general merchandise, etc.), and in consulting on the opening of shopping centers.
(3) Other businesses
The Company and subsidiary Medical Development Co., Ltd. are in the building leasing business.
An organization chart of the business is as follows.

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AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

Notes: *1 consolidated subsidiary*2 affiliated company not accounted under the equity method- 11 -

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

3. Management Policies(1) Basic management policies of the Company(2) Target management indicators(3) The Group’s medium- to long-term management strategies(4) Issues to be addressed
Disclosure of explanations regarding the above matters is omitted since there is no significant change from
Summary of Financial Statements for Fiscal Year Ended April 2010 (as of June 3, 2010).
The details can be checked on the website below;(AIN PHARMACIEZ INC.)
http://www.ainj.co.jp/(Tokyo Stock Exchange: Listed company search)
http://www.tse.or.jp/listing/compsearch/index.html- 12 -

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

4. Consolidated Financial Statement(1) Consolidated balance sheet

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
Accumulated depreciation
Buildings and structures, net
LandConstruction in progress
Other property, plant and equipment
Accumulated depreciation
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
Long-term loans
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- 13 -(Thousand yen)Previous fiscal year
(As of April 30, 2013)

Current fiscal year
(As of April 30, 2014)

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

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

15,007,290(6,759,483)
8,247,806
6,030,803
1,101,510
5,770,116(3,600,201)
2,169,914
17,550,035

17,568,621(7,606,198)
9,962,423
6,698,782
681,640
6,490,314(4,249,228)
2,241,085
19,583,933

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

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

2,789,730
1,347,570
946,439
6,985,755
2,718,770(267,829)
14,520,435
52,676,275

2,559,386
1,801,385
1,068,129
8,081,230
3,065,102(240,307)
16,334,926
57,048,257

1,296
1,296
95,839,919－－
101,382,772

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended 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
Lease obligations
Allowance for retirement benefits
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 (losses) on securities
Remeasurement of defined benefit plans
Total accumulated other comprehensive income (loss)
Minority interests
Total net assets
Total liabilities and net assets- 14 -(Thousand yen)Previous fiscal year
(As of April 30, 2013)

Current fiscal year
(As of April 30, 2014)

24,084,746
7,483,090
2,427,308
7,906,269
1,098,611
12,929315,919
2,357,917
45,686,791

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

8,048,584
1,223,126
1,659,245－
865,651
11,796,607
57,483,398

4,502,810
1,454,125－
1,927,033
909,311
8,793,281
59,142,681

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

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

57,855－57,85544,04438,356,520
95,839,919

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

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

(2) Consolidated statement of income and comprehensive income
Consolidated statement of income(Thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses
Promotion expenses
Salaries, allowances and bonuses
Provision of allowance for doubtful accounts
Provision for bonuses
Provision for directors’ bonuses
Provision for retirement benefits
Provision for reward obligations
Legal and employee benefits expenses
Correspondence and transportation expenses
Lease expenses
Rent expenses
Depreciation expenses
Amortization of goodwill
Taxes
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gains on investments in partnership
Commissions received
Real estate rental revenue
Gains on donations of fixed assets
Consignment income
Technical advisory fee
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- 15 -

Previous fiscal year
(May 1, 2012
to April 30, 2013)
154,560,620
130,118,447
24,442,173

Current fiscal year
(May 1, 2013
to April 30, 2014)
170,225,754
144,476,833
25,748,921

713,984
161,158
3,477,264
9,187
223,656
12,929108,665
315,919923,076570,692
135,997
2,570,000
734,645
1,336,871
562,304
2,884,589
14,740,943
9,701,230

759,900
267,1183,600,585－
249,710
11,93490,467332,315
1,017,920
504,803
151,780
2,858,830
926,650
1,402,261
611,476
2,849,720
15,635,476
10,113,445

88,661
29,10080,251
71,294
91,371
18,337
134,471
63,381
335,895
912,765

76,14735,27645,40233,07374,164
12,315
144,456
66,064
304,760
791,662

144,227
78,72032,74865,677321,373
10,292,622

101,870
85,564
44,59285,963317,991
10,587,115

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014
(Thousand yen)Previous fiscal year
(May 1, 2012
to April 30, 2013)
Extraordinary income
Gains on sales of fixed assets
Gains on sales of investments in securities
Gain on transfer of business
Surrender value of insurance
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
Losses on devaluation of investments in securities
Impairment losses on fixed assets
Directors’ retirement benefits
Other extraordinary losses
Total extraordinary losses
Income before income taxes and minority interests
Income taxes – current
Income taxes – deferred
Total income taxes
Income before minority interests
Minority interests in income (loss)
Net income- 16 -

Current fiscal year
(May 1, 2013
to April 30, 2014)

20,770
119,492
11,666－50,0008,801
210,731

4,194
49,667－214,095－
9,523
277,480

132,390
124,0101,750
159,171
320,000
71,480808,8039,694,549
4,597,097
28,8284,625,925
5,068,624(6,490)5,075,114

336,366－519
189,875－
71,886598,647
10,265,949
5,206,903(273,959)
4,932,943
5,333,005
73,606
5,259,398

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

Consolidated statement of comprehensive income

Income before minority interests
Other comprehensive income
Unrealized holding gains (losses) on securities
Total other comprehensive income
Total comprehensive income
Comprehensive income attributable to shareholders of
the parent
Comprehensive income (loss) attributable to minority
interests- 17 -

Previous fiscal year
(May 1, 2012
to April 30, 2013)
5,068,624(Thousand yen)
Current fiscal year
(May 1, 2013
to April 30, 2014)
5,333,005

339,171
339,171
5,407,795(23,265)(23,265)
5,309,739

5,414,285

5,236,133(6,490)73,606AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

(3) Consolidated statement of changes in net assets
Previous fiscal year (May 1, 2012 to April 30, 2013)(Thousand yen)
Shareholders’ equity
Common stock
Balance at the beginningof current year
Net changes during theyear
Cash dividends paid
Change in scope of
consolidation
Net income
Acquisition of treasurystock
Net changes in items
other thanshareholders’ equity
Total changes during
the year
Balance at the end ofcurrent year

Capital surplus

8,682,976

7,872,970

8,682,976

7,872,970

Retained earnings
17,426,435(281,315)(5,627)

Total
shareholders’equity33,976,755(797,039)(797,039)––

5,075,114

5,075,114
(210)

(210)

4,278,075(210)

4,277,865

21,704,510(5,837)

38,254,620

Accumulated other comprehensive income
Valuation difference on Total accumulated othercomprehensive income
available-for- sale(loss)
securities
Balance at the beginningof current year
Net changes during theyear
Cash dividends paid
Change in scope of
consolidation
Net income
Acquisition of treasurystock
Net changes in items
other thanshareholders’ equity
Total changes during
the year
Balance at the end ofcurrent year

Treasury stock(281,315)

Minority interests

50,535

Total net assets

33,745,975(797,039)–
5,075,114(210)
339,171

339,171(6,490)332,680

339,171

339,171(6,490)4,610,545

57,85557,85544,04438,356,520- 18 -

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014
Current fiscal year (May 1, 2013 to April 30, 2014)(Thousand yen)
Shareholders’ equity
Common stock
Balance at the beginningof current year
Net changes during theyear
Cash dividends paid
Change in scope of
consolidation
Net income
Acquisition of treasurystock
Net changes in items
other thanshareholders’ equity
Total changes during
the year
Balance at the end ofcurrent year

Capital surplus

8,682,976

8,682,976

Retained earnings

7,872,970

21,704,510

7,872,970(5,837)57,855–38,254,620(956,444)(956,444)––

5,259,398

5,259,398(411,501)(411,501)

4,302,954(411,501)

3,891,453

26,007,464(417,338)

42,146,073

Accumulated other comprehensive income
Total accumulated
Valuation difference
Remeasurements ofother comprehensive
on available-for-saledefined benefit plansincome (loss)
securities
Balance at the beginningof current year
Net changes in items
during the year
Cash dividends paid
Change in scope of
consolidation
Net income
Acquisition of treasurystock
Net changes otherthan shareholders’equityTotal changes during
the year
Balance at the end ofcurrent year

Total
shareholders’equityTreasury stock

57,855

Minority
interests
44,044

Total net
assets38,356,520(956,444)－
5,259,398(411,501)(23,265)(58,224)(81,489)

73,606(7,883)(23,265)(58,224)(81,489)

73,606

3,883,570

34,590(58,224)(23,633)

117,651

42,240,091- 19 -

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

(4) Consolidated statement of cash flows
Previous fiscal year
(May 1, 2012
to April 30, 2013)
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Amortization of goodwill
Impairment losses on fixed assets
Impairment losses on investments in securities
Decrease in allowance for doubtful accounts
Increase in reserve for reward obligations
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
Gains on investments in partnerships
Gains on donations of property, plant and equipment
Losses (gains) on sales of investments in securities
Losses on disposal and sales of fixed assets
Gains on transfer of business
Decrease in accounts receivable(Increase) decrease in inventories
Increase in other assets(Increase) decrease in other accounts receivable
Increase in accounts payable
Increase (decrease) in other liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities- 20 -(Thousand yen)

Current fiscal year
(May 1, 2013
to April 30, 2014)

9,694,549
2,212,673
1,784,362
159,171
1,750(6,964)
13,908202,089－
114,549

10,265,949
2,258,946
2,033,305
189,875519(44,561)
16,396－
153,792
38,304

83(995)(117,762)
144,227(80,251)(18,337)
4,518
111,619(11,666)
4,672,927
504,566(195,529)(4,268,619)
474,551(224,922)
15,171,496
125,119(145,132)(4,947,778)
10,203,704(111,424)
101,870(45,402)(12,315)(49,667)
332,171－
1,110,209(1,485,281)(199,126)
1,551,899
3,075,097
84,48019,264,042
105,264(102,520)(4,603,956)
14,662,829

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

Previous fiscal year
(May 1, 2012
to April 30, 2013)
Cash flows from investing activities
Payments for purchases of property, plant andequipment
Proceeds from sales of property, plant and equipment
Proceeds from transfer of business
Payments for purchases of investments in securities
Proceeds from sales of investments in securities
Purchases of subsidiaries’ shares resulting in obtaining
controls
Payments for loans receivable
Proceeds from collections of loans receivable
Payments for investments in capital
Proceeds from returns of investments in capital
Payments for purchase of intangible fixed assets
Proceeds from sales of intangible assets
Increase in other investments
Proceeds from withdrawal of time deposits
Payments for time deposits
Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
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 provided by (used in) financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year

- 21 -(Thousand yen)

Current fiscal year
(May 1, 2013
to April 30, 2014)(3,266,990)(3,460,202)

324,92765,000(559,295)
1,239,667

466,089－(120,560)
322,362(2,923,359)(2,410,135)(578,500)
733,907(743,076)
106(956,067)
2,904(1,864,539)
36,100(14,049)(8,503,264)(3,172,743)
2,545,485
(33)
1,404
(793,994)
8,015(1,150,588)
27,607(12,112)(7,749,405)

850,552
6,440,000(5,258,395)(431,027)(210)(797,039)
803,880
2,504,320
15,935,326
18,439,646(318,138)
137,080(4,510,186)(558,435)(411,501)(956,444)(6,617,625)
295,798
18,439,646
18,735,445

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

(Segment Information, etc.)
a. Segment information
1. Description of the reportable segments
The Company’s reportable segments consist of those of its components for which it is possible to obtainseparate financial information that is examined by its Board of Directors on a regular basis for the purpose of
deciding on the allocation of corporate resources and assessing business performance.
The Group’s business comprises three units that together represent its main business units, namely,
dispensing pharmacy business that consists of operation of dispensing pharmacies, selling of generic drugs,
temporary staff/recruiting and consulting services, and drug and cosmetic store business that consists of the
management of urban and suburban drug and cosmetic stores as well as other businesses that consist
mainly of real-estate leasing services. The formulation and examination of business strategy is conductedindividually for each business.
Accordingly, the reportable segments of the Group are composed of three units, namely, dispensing
pharmacy business, drug and cosmetic store business and other businesses.
2. Methods to determine the amounts of net sales, income or losses, assets, liabilities and other items byreportable segment
The methods used for accounting for the reportable business segments are generally similar to thosedescribed in the Basic Important Matters for Preparation of Consolidated Financial Statements.
The income figures for the reportable segments are expressed at the ordinary income level. Intersegment
sales and transfers are based on prevailing market prices.

- 22 -

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

3. Sales, income (loss), assets, liabilities and other items for each reportable segment
I. Previous fiscal year (May 1, 2012 to April 30, 2013)(Thousand yen)
Reportable segments
Adjustments(Note) 1

Consolidated(Note) 2

154,560,620－

154,560,620

136,627

136,627(136,627)－

16,735,762

669,859

154,697,248(136,627)

154,560,620

12,655,976

14,355(398,033)

12,272,298(1,979,676)

10,292,622

80,710,057

7,048,885

3,961,506

91,720,449

4,119,470

95,839,919

1,576,794

260,444

71,396

1,908,635

38,4901,947,126

1,779,322

5,040

－

1,784,362－

1,784,362

6,949

129,499

15,235

151,684

7,487

159,171

3,575,047

373,150

812,353

4,760,552

549,820

5,310,372

Dispensing
pharmacy

Drug andcosmetic
store

Sales to third parties

137,291,626

16,735,762

533,231

Intersegment sales－－

Total sales

137,291,626

Segment income (loss)
Segment assets

Other

Total

Sales

Other
Depreciation
and amortization
Amortization of
goodwill
Impairment losses
Increase of tangible
and intangible assets
Notes:

1. Segment income (loss) in “Adjustments” totaling (¥1,979,676 thousand) includes ¥1,930,067 thousand in overall
group expenses, ¥112,224 thousand in losses that may not be allocated to the reporting segments,and(¥62,615thousand) in elimination due to intersegment transactions.
The overall group expenses consist mainly of expenses associated with the administrative divisions of the parent
company, such as general affairs and accounting divisions.
Segment assets in “Adjustments” totaling ¥4,119,470 thousand consist mainly of assets associated with theadministrative divisions of the parent company and the difference in elimination of intersegment transactions.
2. Segment income is adjusted with the ordinary income of consolidated statements of income.

- 23 -

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

II. Current fiscal year (May 1, 2013 to April 30, 2014)(Thousand yen)
Reportable segments
Adjustments(Note) 1

Consolidated(Note) 2

170,225,754

0

170,225,754

479,204

479,204(479,204)－

17,985,552

1,246,635

170,704,958(479,204)

170,225,754

12,772,296

23,793(218,597)

12,577,492(1,990,376)

10,587,115

85,490,807

7,649,913

5,419,057

98,559,778

2,822,994

101,382,772

1,632,709

234,744

90,502

1,957,956

129,0142,086,970

2,028,265

5,040

－

2,033,305－

2,033,305

77,263

106,459

6,152

189,875－

189,875

3,062,145

369,182

377,675

3,809,003

759,987

4,568,991

Dispensing
pharmacy

Drug andcosmetic
store

Sales to third parties

151,472,771

17,985,552

767,431

Intersegment sales－－

Total sales

151,472,771

Segment income (loss)
Segment assets

Other

Total

Sales

Other
Depreciation
and amortization
Amortization of
goodwill
Impairment losses
Increase of tangible
and intangible assets
Notes:

1. Segment income (loss) in “Adjustments” totaling (¥1,990,376 thousand) includes ¥1,781,691 thousand in overall
group expenses, ¥284,509 thousand in losses that may not be allocated to the reporting segments, and(¥75,823
thousand) in elimination due to intersegment transactions.
The overall group expenses consist mainly of expenses associated with the administrative divisions of the parent
company, such as general affairs and accounting divisions.
Segment assets in “Adjustments” totaling ¥2,822,994 thousand consist mainly of assets associated with theadministrative divisions of the parent company and the difference in elimination of intersegment transactions.
2. Segment income is adjusted with the ordinary income of consolidated statements of income.

- 24 -

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014b. Related information
I. Previous fiscal year (May 1, 2012 to April 30, 2013)
1. Information by product and service
This disclosure has been omitted because the same information is disclosed under Segment Information.
2. Information by region(1) Net sales
This disclosure has been omitted because the Group had no sales to external customers outside Japan
during the fiscal year.
(2) Property, plant and equipment
This disclosure has been omitted because the Group had no property, plant and equipment located outside
Japan at the balance sheet date.
II. Current fiscal year (May 1, 2013 to April 30, 2014)
1. Information by product and service
This disclosure has been omitted because the same information is disclosed under Segment Information.
2. Information by region(1) Net sales
This disclosure has been omitted because the Group had no sales to external customers outside Japan
during the fiscal year.
(2) Property, plant and equipment
This disclosure has been omitted because the Group had no property, plant and equipment located outside
Japan at the balance sheet date.
c. Information regarding impairment losses of fixed assets for each reported segment
Previous fiscal year (May 1, 2012 to April 30, 2013)This disclosure has been omitted because the same information is disclosed under Segment Information.
Current fiscal year (May 1, 2013 to April 30, 2014)
This disclosure has been omitted because the same information is disclosed under Segment Information.

- 25 -

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2014

d. Information about goodwill amortization amount and year-end balance for each reportable segment
Previous fiscal year (May 1, 2012 to April 30, 2013)(Thousand yen)
Dispensing
pharmacybusiness

Drug andcosmetic store
business

Otherbusinesses

Corporate /Eliminations

Total

Amortization of current fiscal year

1,779,322

5,040

－

－

1,784,362

Balance at the end of current fiscal year

19,569,499

5,040

－

－

19,574,539

Current fiscal year (May 1, 2013 to April 30, 2014)(Thousand yen)
Dispensing
pharmacybusiness

Drug andcosmetic store
business

Otherbusinesses

Corporate /Eliminations

Total

Amortization of current fiscal year

2,028,265

5,040

－

－

2,033,305

Balance at the end of current fiscal year

20,017,440

－

－

－

20,017,440

e. Information about gains on negative goodwill for each reported segment
Previous fiscal year (May 1, 2012 to April 30, 2013)
There are no applicable matters to be reported.
Current fiscal year (May 1, 2013 to April 30, 2014)
There are no applicable matters to be reported.

- 26 -