Summary of Financial Statements for Fiscal Year Ended April 2009
June 3, 2009
Name of Listed Company: AIN PHARMACIEZ INC.
Exchange Listed on: Tokyo, Second Section
Code Number: 9627
URL: http://www.ainj.co.jp/
Representative: Kiichi Ohtani, President and Representative Director
Inquiries:
Junichi Kawai, Senior Managing Director and Chief of Administration
TEL: (011) 783-0189
Date of the ordinary general meeting of shareholders:
July 30, 2009
Date of scheduled payment of dividends:
July 31, 2009
Date of filing securities report:
July 31, 2009
(Amounts are rounded down to the nearest million yen.)

1. Consolidated Results for Fiscal Year Ended April 2009 (from May 1, 2008 to April 30, 2009)(Percentage figures indicate year-on-year changes.)(1) Consolidated operating results
Net sales
FY ended April 2009
FY ended April 2008

Operating income

Ordinary income

Net income

Million yen%

Million yen%

Million yen%

Million yen%

115,387
106,231

8.6
30.7

5,296
4,444

19.2
53.9

5,041
4,315

16.8
52.3

2,127
1,615

31.7
59.9

Net income per
share
FY ended April 2009
FY ended April 2008

Diluted net income
per share

Return on
shareholders’ equity

Ordinary income tototal assets

Operating income to
net sales

Yen

Yen

%

%

%

170.74142.36170.28141.82

15.1
14.2

8.4
8.0

4.6
4.2

(Reference) Equity in earnings of affiliates: FY ended April 2009: ¥ － million, FY ended April 2008: ¥ － million(2) Consolidated financial position
Total assets
FY ended April 2009
FY ended April 2008

Net assets

Shareholders’ equity ratio

Net assets per share

Million yen

Million yen%

Yen

62,03257,546

16,10912,70725.9
20.9

1,252.54
1,059.78(Reference) Shareholders’ equity: FY ended April 2009: ¥16,071 million, FY ended April 2008: ¥12,040 million(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows from investing
activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of year

Million yen

Million yen

Million yen

Million yen

4,333
8,424

(757)
(6,980)1,462(1,429)

9,234
4,195

FY ended April 2009
FY ended April 2008

2. Dividends
2Q-end(Record date)1Q-endYen

YenMillion yen%%

FY ended April 2008
FY ended April 2009

－
－

－
－

－
－

20.00
30.00

20.00
30.00

227
384

14.0
17.6

2.0
2.6

FY ending April 2010
(forecast)

－

－

－

35.00

35.00

Yen

3Q-endYen

Year-end

Dividends on
Dividends
net assets
payout ratio(consolidated) (consolidated)

Total
dividends(annual)Dividends per share
Yen

Annual16.0(Note) Breakdown of year-end dividend per share for FY ended April 2009: Commemorative dividend: 5.00 yen(Ordinary dividend: 25.00 yen)

3. Consolidated Results Forecast for Fiscal Year Ending April 2010 (from May 1, 2009 to April 30, 2010)(Percentages displayed for the full year are compared to the previous year, and for the First Half, accumulated totals on a consolidated basis are comparedagainst the same period of the previous year.)Net salesFirst half
Full year

Operating income

Ordinary income

Net income
per share

Net income

Million yen%

Million yen%

Million yen%

Million yen%

Yen

60,450127,000

6.3
10.1

2,350
6,050

8.2
14.2

2,220
5,850

7.2
16.0

880
2,800

6.0
31.6

68.57
218.17-1-

AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009

4. Others(1) Major changes in subsidiaries during fiscal year (changes in specified subsidiaries resulting in changes in scope of
consolidation): None
(2) Changes in accounting principles, procedures and presentation methods used in preparation of the consolidated financial
statements
1) Changes associated with revisions of accounting standards:
Yes2) Changes other than those included in 1):
None(3) Number of outstanding shares (common stock)1) Number of outstanding shares at end of fiscal year (including treasury shares):
FY ended April 2009: 12,834,106 shares,
FY ended April 2008: 11,363,456 shares
2) Number of treasury shares at end of fiscal year:
FY ended April 2009: 2,730 shares,
FY ended April 2008: 2,456 shares(Reference) Overview of Non-Consolidated Results
1. Results for Fiscal Year Ended April 2009 (from May 1, 2008 to April 30, 2009)(1) Non-consolidated operating results
Net sales
FY ended April 2009
FY ended April 2008

Operating income(Percentage figuress indicate year-on-year changes.)

Ordinary income

Net income

Million yen%

Million yen%

Million yen%

Million yen%

55,87454,386

2.7
6.1

1,629
1,243

31.0
(12.7)

1,814
1,599

13.4
12.4

620
389

59.3
(28.6)Net income per share
FY ended April 2009
FY ended April 2008

Diluted net income per
share

Yen

Yen

49.76
34.30

49.63
34.17

(2) Non-consolidated financial position
Total assets
FY ended April 2009
FY ended April 2008

Net assets

Shareholders’ equity ratio

Net assets per share

Million yen

Million yen%

Yen

50,66846,807

12,654
10,14825.0
21.7

986.18893.26(Reference) Shareholders’ equity: FY ended April 2009: ¥12,654 million, FY ended April 2008: ¥10,148 million* Explanation concerning the appropriate use of financial result forecasts and other special notes
The above forecasts are based on information available at the date of publication, and actual results may differ from the forecast figuresdue to changes in economic climate and other factors.

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AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009

1. Operating Results(1) Analysis of operating results
During the fiscal year under review, the Japanese economy was in increasingly harsh circumstances such as significantly
decreasing corporate earnings, shrinking labor market and increasing bankruptcy cases, which were brought about by thefurther deteriorating global economy.
In these economic conditions, the AIN PHARMACIEZ Group (the Group) enhanced its operating base and profitability
through the business expansion by actively opening dispensing pharmacies and urban drug stores as well as thestrengthened cooperation among the Group companies.
In August 2008 we entered into a business and capital alliance agreement with Seven & i Holdings Co., Ltd. whichallowed us to open stores through the tie-up of the two companies. In April 2009, we agreed to establish a joint venture
for effectively utilizing and operating the drug store business assets owned by these two groups and founded “Seven
Health Care Co., Ltd.” on June 1, 2009.
For the terms and conditions of the agreement on the establishment of a joint venture and overview of the establishedcompany, please refer to Section 3. Management Policies, (5) Other important management items.
On April 2, 2009 we listed our shares on the Second Section of the Tokyo Stock Exchange.
In terms of results for the fiscal year under review, through the opening of new dispensing pharmacies and urban drug
stores as well as the contribution to the consolidated performance by the subsidiaries acquired during the previous fiscal
year, we achieved the highest records both in sales and profits with the net sales of ¥115,387 million (+8.6% year-on-year),ordinary income of ¥5,041 million (+16.8% year-on-year), net income of ¥2,127 million (+31.7% year-on-year).
Performance by business segment was as follows.
(Pharmaceutical business)
In the Pharmaceutical business, the earnings and expenses in existing dispensing pharmacies are on a downward trend
because of the revision to the official drug prices and prescription dispensing fee in April 2008.
The Group further enhanced the cooperation among the Group companies, for example, by making AIN MEDICALSYSTEMS Inc. its wholly-owned subsidiary through share exchange in June 2008 (AIN MEDICAL SYSTEMS Inc. had
been a subsidiary listed on the JASDAQ Securities Exchange but was delisted from the JASDAQ Securities Exchange inthe same month), and sought to improve the business efficiency by sharing sales information, introducing common
systems and methods for pharmacy operations, cooperation in education and training and others.
We sought to improve our profitability through efficient operations by actively adopting generic drugs, expanding the
deployment of the dispensing pharmacy system and integrating part of the functions of the back-office unit in the Group.
With the introduction of the six-year curriculum in pharmaceutical education at colleges, it is expected to become
difficult to hire new graduate pharmacists for two years. For this reason, the Group strengthened its group-wide recruiting
activities and hired more than 250 pharmacists who graduated in 2009 in order to ensure a system ready for the businessexpansion during the two-year blank period.
In the fiscal year under review, we continued active new store openings and business development with 25 store
openings and closure/business transfer of 8 stores as well as making Saitama Chozai Co., Ltd. our subsidiary. As a result,the Group had 375 dispensing pharmacies in operation in total.
Furthermore, Asahi Pharmacy Co., Ltd. and Sunwood Co., Ltd., both of which had become subsidiaries of the Group in
the previous fiscal year, contributed to the consolidated performance throughout the current fiscal year. As a result, weachieved increases both in sales and profits with the net sales of ¥101,876 million (+10.8% year-on-year) and operating
income of ¥ 6,761 million (+14.1% year-on-year).
(Product sales business)
The Product Sales business is typified by the “Ainz & Tulpe” urban drug stores and the “Tulpe” cosmetic specialty stores,
which are located in inner-city areas and large shopping centers throughout the country.
In the “Ainz & Tulpe” and “Tulpe” stores, cosmetic products (general cosmetics and specified cosmetics involving
counseling sales) account for 75% in the average sales. These stores are differentiated from ordinary drug stores by their
specialty-oriented store concept to address the newest trends in cosmetology and offer the counseling function.
In a market environment with slumping personal consumption, we continued improving the profitability in existing
stores mainly through the sales measures based on new merchandise, inventory adjustment to ensure a proper level, andefficient sales promotion activities by utilizing the “Ainz Point Club Card,” and also accelerated our businessdevelopment in many fields, such as store openings (three stores: Susukino Lafiler store, Soka store and Eniwa store) incooperation with our capital/business alliance partner, Seven & i Holdings Co., Ltd.
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AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009

In addition to these store openings, we reached an agreement with the Seven & i Holdings Group to establish a joint
venture carrying out general activities for the business with the said group including the operation of drug stores, andfounded “Seven Health Care Co., Ltd.” on June 1, 2009 through joint capital investment.
In the fiscal year under review, we opened 5 new stores in total, including 3 “Ainz & Tulpe” stores, 1 “Tulpe” store and1 “Ainz” store while closing 4 unprofitable stores. The total number of drug stores including the said new stores and AINTOKAI Inc, a subsidiary was 46.
The “Ainz Point Club Card,” serving as an indicator of the number of customers, has more than 1.73 million members,
in which 200,000 people were added from the year-ago period.
The closure of unprofitable stores and others affected net sales, which resulted in ¥13,251 million (-5.2% year-on-year),although the operating loss was improved to ¥289 million (improvement of ¥192 million, year-on-year).
(Other businesses)
Net sales of Other businesses were ¥258 million (-3.6% year-on-year) and operating losses were ¥82 million (+9.2%
year-on-year).
For the next fiscal year, we plan to open around 60 stores in total including dispensing pharmacies and urban drug
stores by further promoting the business development both in the Pharmaceutical and Product Sales businesses in order toexpand the Group’s operational scale.
At the same time, we will enhance our profitability by streamlining the business operations through the cooperation
among the Group companies and promoting the development of common systems.
With these measures, the Group’s performance for the next fiscal year is expected to be the highest ever both in sales
and profits with the net sales of ¥127,000 million (+10.1% year-on-year), ordinary income of ¥5,850 million(+16.0%
year-on-year), and net income of ¥2,800 million (+31.6% year-on-year).
(2) Analysis of financial position
1) Assets, liabilities and net assets
The balance of consolidated current assets at the end of the fiscal year under review was ¥28,170 million, up from
¥22,608 million at the end of the previous fiscal year, an increase of ¥5,561 million.
This was a result of the increased cash of ¥9,234 million (+¥4,918 million year-on-year) brought about by the improved
liquidity on hand in the Group, as well as the increased total of merchandise and supplies (inventories in the previous fiscal
year) of ¥5,928 million (+¥573 million year-on-year) due to the opening of new dispensing pharmacies and drug stores.
The balance of consolidated fixed assets at the end of the fiscal year under review was ¥33,862 million, down from¥34,937 million at the end of the previous fiscal year, a decrease of ¥1,075 million.
This was mainly because of the following reasons: the unamortized balance of goodwill at the end of the fiscal year
dropped to ¥12,835 million (-¥624 million year-on-year) while the lease deposits and guarantee deposits fell to ¥4,496
million (-¥1,615 million year-on-year) due to the liquidation of part of the lease deposits and the like although thetangible fixed assets rose to ¥12,238 million (+¥676 million year-on-year) as a result of the investments related to newstore openings, application of the lease accounting standards and others.
Liabilities were ¥45,923 million compared to ¥44,839 million at the end of the previous year, an increase of ¥1,084 million.
This was primarily attributable to the newly recorded lease obligations (long- and short-term) of ¥515 million as aresult of the application of the lease accounting standards. In regard to the balances of interest-bearing debts, short-termloans payable, long-term loans payable and bonds (current portion of bonds in the current fiscal year) were ¥7,576 million(+¥199 million year-on-year), ¥10,966 million (+¥239 million year-on-year), and ¥140 million (-¥332 million
year-on-year), respectively.
As a result of the above, the balance of current liabilities was ¥831 million up from the previous year-end balance of¥32,570 million to ¥33,402 million, and the balance of fixed assets ¥12,521 million, up ¥253 million from the previous
year-end balance of ¥12,268 million.
The balance of net assets was ¥16,109 million compared to ¥12,707 million at the end of the previous fiscal year, an
increase of ¥3,401 million.
This was because the third-party allocation of new shares under the business/capital alliance with Seven & i Holdings
Co., Ltd., share exchange with AIN MEDICAL SYSTEMS Inc., and exercise of equity warrants and the like increased thecapital stock to ¥5,057 million (+¥1,632 million year-on-year) and the capital surplus to ¥4,247 million (+¥703 million
year-on-year) while the balance of retained earnings rose to ¥7,127 million (+¥1,920 million year-on-year) due to the-4-

AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009

growth of retained earnings in the current fiscal year.
The unrealized holding gains on securities indicated ¥356 million unrealized losses.
As a result of the above factors, the consolidated shareholders’ equity ratio was 25.9%, compared with 20.9% at the endof the previous fiscal year, and the current ratio increased from 69.4% to 84.3%.
In the fiscal year under review, the Group worked on reinforcing its financial strength by promoting the group-widebusiness expansion through active investments and enhancing the both liquidity on hand and capital adequacy ratio.
In the business development including new store openings and M&A, we will continue focusing on the return on
investment, seeking to achieve the growth of profitability and reduction of interest-bearing debts, building a firm financial
foundation, and making efforts to improve our corporate value.
2) Cash flows
In the fiscal year under review, consolidated cash and cash equivalents (hereunder “cash”) increased by ¥5,038 million
from the previous fiscal year to ¥9,234 million (+120.1% year-on-year) because of the expanded profitability through the
new store openings and M&A, and the enhancement both in the financial strength and liquidity on hand by efficientutilization of the Group’s assets to get ready for further business expansion.
The position in the fiscal year under review for the various categories of cash flow, and the reasons for them, are as
follows.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥4,333 million (-48.6% year-on-year).
The main factors generating inflow were income before income taxes and minority interests of ¥4,743 million,
depreciation and amortization of ¥1,119 million, amortization of goodwill of ¥860 million, and decrease in tradereceivables of ¥451 million. This decrease was attributable to the expansion of the operational scale including new store
openings and M&A.
The main factors generating outflow were the increase of ¥561 million in inventories and increase of ¥2,533 million inincome taxes paid.
(Cash flows from investing activities)
Net cash used in investing activities was ¥757 million (-89.2% year-on-year)
This reflects payments of ¥179 million for the purchase of shares in an affiliated company (Saitama Chozai Co., Ltd.) and¥1,391 million for the acquisition of tangible fixed assets associated with the new store openings including urban drug
stores and dispensing pharmacies.
In addition, it also reflects the change of ¥1,269 million in investments and other assets including the liquidation oflease deposits and guarantee deposits carried out as part of the measure to enhance the liquidity on hand.
(Cash flows from financing activities)
Cash inflow from financing activities was ¥1,462 million (outflow of ¥1,429 million in the previous fiscal year).
This was mainly because of the inflow of 1,673 million attributable to the issuance of new shares associated with thethird-party allocation of shares and exercise of stock options.
In terms of interest-bearing debts, the following net figures for borrowings and repayments are reflected in the results:¥1,078 million repaid for short-term debt, ¥1,517 million financed as long-term debt, and ¥332 million payments
associated with the redemption of bonds.
There was also an outflow of ¥227 million in dividends paid.
Changes in Group cash flow indicators are shown below.
FY ended April
FY ended April
FY ended April
FY ended April
2006
2007
2008
2009
Equity ratio (%)
24.8
21.5
20.9
25.9
Equity ratio based on actual value (%)
64.3
34.1
29.4
30.6
Debt redemption term (years)
3.4
8.1
2.2
4.3
Interest coverage ratio (times)
25.6
11.5
23.2
12.0
(Notes) Equity ratio = shareholders’ equity / total assets
Equity ratio based on actual 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 were calculated using the cash flow from operations on the consolidated cash flow statement and interest paid.

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AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009(3) Basic policies for profit distribution, and dividends for the year under review and the following year
The Company treats 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.
Internally, reserves are held to strengthen the Company’s balance sheet and in preparation for new store openings andfuture development of the business. We will make effective use of these funds to generate profits to be returned toshareholders in the future.
The Group’s basic policy is to pay dividends from retained earnings once per year at the end of the fiscal year. The
year-end dividend to be paid is determined at the annual general meeting of stockholders, and interim dividends are set ata board of directors’ meeting. Further, the company has established that “When approved by a board of directors’ meeting,interim dividends may be paid with a record date of 31st October each year” within its articles of incorporation.
In regard to dividends from retained earnings in the year under review, we plan to pay ¥30 per share in total, comprisedof ¥25 per share as ordinary dividend (increase of ¥5 per share over the preceding year) and ¥5 per share ascommemorative dividend for the Company’s listing on the Second Section of the Tokyo Stock Exchange. In view of our
profit forecasts, an ordinary dividend of ¥35 per share, an increase of ¥10, is expected in the subsequent year.
(4) Business and other risks
The following factors may influence the Group’s operating results, stock price and financial position. Statements in the
text referring to the future reflect the judgment of the Group at the end of the current fiscal year.
1) Laws and regulations(i) Regulations under the Pharmaceutical Affairs Law and other laws.
We operate insurance pharmacies and dispensing pharmacies (hereunder “insurance and dispensing pharmacies”)
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 andWelfare, and of Prefectural Health and Welfare Departments.
The drug store business in our Product sales business also involves sales of pharmaceuticals, which are similarly
regulated under the Pharmaceutical Affairs Law. In addition, permits and licenses stipulated by the relevant laws are
required to engage in sales of foods and tobacco.
The main ones are as follows.
Approval, registration, appointment, license
Term ofRelated law or ordinance
Grantoror notification
validity
Permit to open a pharmacy

6 years

Pharmaceutical Affairs Law

Prefectural Governors

Insurance pharmacy certification

6 years

Health Insurance Law

Prefectural Social
Insurance Bureau Heads

License to sell narcotic drugs

2 years

Narcotics and Psychotropics
Control Law

Prefectural Governors

Notification of sales of medical equipment

Indefinite Pharmaceutical Affairs Law

Prefectural Governors

Business selling highly controlled medical
equipment

6 years

Pharmaceutical Affairs Law

Prefectural Governors

Medical product sales permit (note)

6 years

Pharmaceutical Affairs Law

Prefectural Governors, etc.

(Notes) In Article 25 of the Pharmaceutical Affairs Law, medical products sales permits are divided into four categories: General
Sales, Drug Trade and Sales, Household Medicine Sales and Special Sales (As of June 1, 2009, divided into three categories:
Storefront Sales, Household Medicine Sales and Wholesale Distribution). The Group’s Product Sales business has received theGeneral Sales and Drug Trade and Sales permits. If the Group becomes the subject of an order of revocation or suspension ofbusiness license by the competent authorities due to an act committed in the Group’s insurance and dispensing pharmacies and drug
store business, which constitutes a violation of 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’sbusiness performance may be affected.

(ii) Easing of pharmaceutical sales regulations
Under the “Law for Partial Revision of the Pharmaceutical Affairs Law,” (Law 69 of 2006, 14 June 2006) which
includes a review of the sales system for over-the-counter (OTC) drugs; OTC drugs are categorized into three groups
by risk. Since that law took effect, it has become possible to sell the two lower-risk categories of pharmaceuticals as a“Registered Vendor,” not requiring a pharmacist.
Factors such as the entry into the market of firms from other industries, as a result of a continuing trend in future to-6-

AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009deregulate pharmaceutical sales, could have an impact on the Group’s profits.
2) Details of businessIn the Group’s Pharmaceutical business, we have a chain of insurance and dispensing pharmacies based on a scheme,
where insurance and dispensing pharmacies are located near medical institutions for concentrating on the prescriptions
from the certain medical institutions to secure demand.
As the Pharmaceutical business accounted for 88.3% of net sales in the fiscal year under review, we plan to continue
the multi-store operation mainly based on the dispensing pharmacies. Accordingly, the Group’s operating results may beaffected by the success or failure of the store opening policies and by trends in competitors’ store openings.
Furthermore, sales of dispensing pharmacies significantly depend on the medical institutions that write prescriptions.
Therefore, some hard-to-predict factors including the issuance of prescriptions for extramural dispensing by the medical
institutions or suspension/discontinuation of operations thereof may affect the Group’s business performance.
3) Industry trends
The revenues in our Pharmaceutical business come from pharmacy operations, involving the dispensing and supplyingof prescription pharmaceuticals based on prescriptions. The prices of those pharmaceuticals (drug prices) andremuneration levels are set by the Ministry of Health, Labour and Welfare. As a way to confine national medical
expenses, both remuneration for medical treatments and drug prices are being reduced in stages. Changes in profit
structure resulting from factors such as revisions in the treatment remuneration system could continue to have an impact
on the Group’s profits and financial position.
4) Retention of qualified staff
Dispensing pharmacies and drug stores (General Sales / as of June 1, 2009, 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
medicines must be handled by a pharmacist. The Group continues to have a policy of expansion by aggressively opening
new stores, but if it becomes difficult to secure qualified pharmacists, could have an impact on our new store plans andour profits.
5) Risks of loss of trust in the Company(i) In the pharmacy businesses
In our Pharmaceutical business, pharmacists dispense and supply prescription drugs that affect the human body. Thisbusiness carries the risk that medical accidents might be caused through errors in dispensing drugs.
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 prevent this risk from materializing.
Primary risk prevention measures are as follows.
• Training programs for new hires, including a 3-month training program for newly-graduated pharmacists andprograms for mid-career pharmacists• A continuing training program aimed at increasing the skills of pharmacists• Pharmacy manager conferences attended by all pharmacy managers, to nurture management• Development and introduction of pharmacy tools that make use of information technology, such as the
deployment of a prescription dispensing error prevention system (PhAIN) using Personal Digital Assistants(PDAs), developed jointly with manufacturers of dispensing equipment, and a prescription reading system thatmakes use an optical character recognition (OCR)• Use of in-house manuals for the dispensing function and a system of observing rules set by the Internal Audit
Office• Establishment of a Safety Policy Office specializing in measures to prevent prescription dispensing errors(ii) Protection of personal data
We hold patient data in the Pharmaceutical business, including medical histories and prescription information, and we
hold personal data in the Product sales business obtained for the AINZ Point Club Card.
The Group has completed development of personal information protection systems and rules for the handling ofsuch information. In March 2008, the Company acquired the right to display the “Social insurance and welfare sector
privacy mark.”
However, we believe it is possible that any accidental or criminal leakage of personal data may not only affect ourbusiness results but also lead to a loss of society’s confidence in the Group.
6) Risk in business strategy
We have promoted the expansion of operational scale through active new store openings and M&A on dispensing
pharmacies.
Our basic policies in the M&A strategy require us to carefully examine target companies and determine the amount to-7-

AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009

be paid for acquisitions thereof in order to stably secure a profitability level that exceeds the amortization of goodwill to
be incurred. If things do not go well as we expected, however, we may incur losses on stock investment in subsidiaries
and impairment loss on goodwill, which may have an adverse impact on the Group’s operating results and financial
position.
7) Risk of financial fluctuation
In the Group’s promoted business expansion based on active new store openings and M&A, costs for ordinary store
openings are covered by its own resources within the range of operating cash flow while large-scale M&A cases are
partially financed by borrowings from financial institutions.
As of the end of the fiscal year under review, the balance of interest-bearing debts of the Group was ¥18,682 million
while the net debt/equity (D/E) ratio, an indicator showing the dependency on borrowings, was 0.45 times. (Net D/E
ratio = interest-bearing debts – (cash + investment in securities) / shareholders’ equity)
As the net D/E ratio is set to 0.5 times or less as a proper level in the Group, we focus on the possibility of return on
investment and seek to reduce interest-bearing debts in implementing M&A.
However, if the Group fails to secure an adequate return on its M&A investment, or due to interest rate fluctuations
associated with conditions of the 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 2009

2. State of the GroupThe Group consists of the parent company AIN PHARMACIEZ Inc., 14 subsidiaries and 1 affiliated company.
(1) Pharmaceutical business
The Company operates and franchises dispensing pharmacies, and engages in consulting on the opening of dispensing
pharmacies.
The subsidiaries AIN MEDICAL SYSTEMS Inc., AIN TOKAI Inc., Rejoice Inc., Rejoice Pharmacy Inc., MEDICALHEARTLAND Co., Ltd., Daichiku Co., Ltd., Asahi Pharmacy Co., Ltd., Sunwood Co., Ltd. MIYAKO AIN Inc. and
Saitama Chozai Co., Ltd. operate pharmacies.
The subsidiary AIN STAFF Mediwel Corp. is a medical-related consulting business and is engaged in staff dispatching
and introduction, primarily of doctors and pharmacists, while the subsidiary Wholesale Stars Co., Ltd. sells generic drugs.
(2) Product sales businesses
The Company engages in the management of drug stores (selling pharmaceuticals, non-medicinal products, cosmetics,
food, life-style products, etc.), and in consulting related to the establishment of shopping centers.
A subsidiary, AIN AID Inc. is entrusted with part of the Company’s drug store operations. Another subsidiary, NICEAIN Inc. is engaged in part of the sales activities of AIN TOKAI Inc. in accordance with the business contract between
the two companies.
Please note that the business contract relationships between the Company and AIN AID Inc. and between NICE AIN
Inc. and AIN TOKAI Inc. are terminated as of June 1, 2009, on which the revision to the Pharmaceutical Affairs Law was
enforced.
(3) Other businesses
The Company and its subsidiary AIN AID Inc. are in the building leasing and management business.
An organization chart of the business is as follows.

Dispensing and sales of pharmaceuticals
AIN MEDICAL SYSTEMS Inc.

Rejoice Inc.

*1

Rejoice Pharmacy Inc.

*1

Daichiku Co., Ltd.

*1

Asahi Pharmacy Co., Ltd.

*1

Sunwood Co., Ltd.

*1MIYAKO AIN Inc.

*1

Saitama-Chozai Co., Ltd.

*1YAGI PHARMACY Inc.

*2

Mediwel Corp.

*1

Dispensing &sales ofpharmaceuticals

Staff dispatching andintroduction business/
medical consulting

Outsourced business NICE AIN Inc.
Sales of pharmaceuticals
Outsourced
AIN AID Inc.
business*1

Sales of pharmaceuticals

Sales of pharmaceuticals
Building leasing

Building leasing*2 affiliated company not accounted under the equity method-9-

Contract
counterparties(Notes) *1 consolidated subsidiary*1

Consumers

Product sales business Other business

Sales of pharmaceuticals

Contract
counterparties

Pharmacies/
medicalinstitutions*1
Patients

Wholesale Stars Co., Ltd. *1

AIN PHARMACIEZ Inc.

Pharmaceutical business

Sales of generic drugs, etc.

AIN TOKAI Inc.

*1

AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009

3. Management Policies(1) Basic management policies of the Company
The Company’s main businesses are the insurance and dispensing pharmacies business, based on dispensing ofprescriptions, and the drug store business of selling products, primarily pharmaceuticals and cosmetics. Because both ofthese businesses contribute to people’s health, we bear an important social responsibility.
We believe the Company’s mission is not only to grow its profits and increase shareholder value through aggressively
opening new stores as the Pharmaceuticals segment develops, but also to work for continuous improvements in safety andspecialized skills in this business, given that we are a Company that can affect people’s lives.
Accordingly, our basic management policy is “to fulfill our social mission by working to eliminate medicine dispensing
errors and other business risks, and by creating pharmacies that customers can be confident in visiting, while placing
weight on actively expanding the business in accordance with market conditions.”(2) Target management indicators
While working to expand our corporate scale by actively opening new stores, the Company also focuses on strengthening
its financial structure and increasing shareholder value.
In the fiscal year under review the ROA was 3.6% and the ROE was 15.1%.We will work continuously to improve
investment efficiency and profitability to achieve the Company’s targets of 4.5% ROA and 15.5% ROE.
(3) The Company’s medium- to long-term management strategies
The Company’s core businesses are the active establishment of new stores and the nationwide development of dispensing
pharmacies through M&A activities, and the development of urban drug stores, focusing primarily on cosmetics, in major
cities across Japan. We aim both to expand the scale of these businesses and to increase shareholder value.
In the dispensing pharmacies business, our policy is for group companies to continue to grow sales by opening
dispensing pharmacies located just outside medium- and large-scale medical institutions in their regions, and to pursue
actively, after careful consideration, the further M&A opportunities we envision in this industry in the future.
In addition, we will work both to assure the safety of our patients, to improve customer service and to increase businessefficiency by comprehensive education and training, and through the development and introduction of medicine
dispensing equipment using the latest technology.
In response to the opportunities in generic drugs, our subsidiary Wholesale Stars Co., Ltd., a drug wholesaler
specializing in generics, is intensifying its marketing and improving the rate at which it is used by medical units; as aGroup we are actively promoting the greater proliferation of generic drugs.
In the Product sales business, we are aiming at further expansion by opening stores in major cities across the country,
mainly in the urban drug store “Ainz & Tulpe” format and the new format “Tulpe” specialty stores, and to prepare for theentry of other industries emerging due to the implementation of the registered sales system by clearly differentiating thesestores from other drug stores by the range of cosmetics they offer.
As a result of the above, our medium- to long-term management strategies are based on the following policies.
1) As a Group, we will open approximately 50 dispensing pharmacies per annum, mainly in close proximity to coreregional hospitals. We will also aim to expand the scale of our business by growing our sales, keeping M&As in ourradar.
2) Actively promote the introduction into the Group of the latest pharmacy tools and developing dispensing
technologies that make use of IT, and improve customer safety, service and the efficiency of pharmacy management
through the integrated application of individual devices.
3) We will improve efficiency within the Group by strengthening cooperation between group companies, thedeployment of pharmacists, the supply of generic drugs and select administrative tasks. We will use this all-embracing
group structure to build a dominant competitive position in the industry.
4)In the Product sales business, we will open approximately 5-8 stores nationwide, with the urban drug stores “Ainz &Tulpe” and the cosmetic specialty stores “Tulpe” as the core, to differentiate ourselves from competitors.
5) We will aim to increase the number of customers holding the “AINZ Point Club Card” in order to increase thenumber of customers, and make effective use of sales information to analyze customer trends and to improve store
profitability.
(4) Issues to be addressed
In the Pharmaceutical business, as the burden of national healthcare expenses increases along with rapid Japan’s low,
declining birth rate and rapidly aging society, the biannual reforms of official drug prices and prescription dispensing fee
will continue.
- 10 -

AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009

The Group’s basic strategy is to maximize economies of scale, and respond to changes in the market environment byimproving the efficiency of our dispensing business and the quality of our drugstore services in order to expand ourbusiness scale and profits.
To optimize economies of scale, the Group will seek to reinforce its business infrastructure by sharing information
owned by individual Group companies on development property and M&A projects throughout the country, promoting
the expansion of the store opening scale, and aggregating functions of the back-office unit such aspurchasing/procurement and recruiting.
In the Pharmacy Business, we will promote technologies and systems considering that the accuracy of medicine
dispensing and the safety of patients are the highest priority, and work to improve the efficiency of the Pharmacy Businessand its capabilities.
The Product sales business continues to expand the “Ainz & Tulpe” urban drug store format and the “Tulpe” cosmetic
specialty stores, and will achieve improved earnings by increasing new items of merchandise and reviewing adjustments
to inventories and sales promotion methods.
We will open stores in urban areas throughout the country by focusing on the return on investment based on theverification of the trend of earnings and expenses in the “Tulpe” cosmetic specialty stores in addition to the profitable“Ainz & Tulpe” stores.
In the increasingly harsh economic conditions, we will improve the profitability of the Group by launching projects
beyond the frameworks of Group companies and segments, aggregating functions in the Group, standardizing theadministration of operations and drastically reconstructing other business activities in general.
(5) Other important management items
Pursuant to a resolution at the meeting of the Board of Directors on April 9, 2009, the Company entered into a basic
agreement with Seven & i Holdings Co., Ltd. and its subsidiaries, Ito-Yokado Co., Ltd. and Seven-Eleven Japan Co., Ltd.
for establishing a joint venture to operate drug stores.

- 11 -

AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009

4. Consolidated Financial Statements(1) Consolidated balance sheets(In thousand yen)Previous fiscal year
(As of April 30, 2008)ASSETS
Current assets
Cash on hand and in banks
Notes and accounts receivable
Inventories
Merchandise
Supplies
Deferred tax assets
Short-term loans
Other accounts receivable
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures
Accumulated depreciation
Buildings and structures (net)Land
Construction in progress
Other fixed assets
Accumulated depreciation
Other fixed assets (net)Total tangible fixed assets
Intangible fixed assets
Goodwill
OthersTotal 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- 12 -

Current fiscal year
(As of April 30, 2009)

4,315,144
8,964,331
5,355,444––
568,870594,282
2,421,622
424,247(35,153)
22,608,788

9,234,052
8,560,181–
5,832,459
96,387
631,776
613,327
2,409,241805,376(12,059)
28,170,743

9,397,888(3,603,305)
5,794,583
4,849,362
266,8712,039,992(1,388,438)
651,554
11,562,371

10,018,766(4,031,246)
5,987,520
4,958,767
208,840
2,734,244(1,650,933)
1,083,311
12,238,439

13,459,919
443,469
13,903,389

12,835,388
657,926
13,493,314

1,964,107
884,241
6,111,327
770,363(258,000)
9,472,039
34,937,800
57,546,589

2,057,061
892,856
4,496,234
952,859(268,587)
8,130,424
33,862,179
62,032,922

AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009
(In thousand yen)

LIABILITIESCurrent liabilities
Accounts payable
Short-term debt
Current portion of bonds
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
Bonds
Allowance for retirement benefits
Other long-term liabilities
Total long-term liabilities
TOTAL LIABILITIESNET ASSETS
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Unrealized holding gains on securities
Total valuation and translation adjustments
Minority interests
TOTAL NET ASSETSTOTAL LIABILITIES AND NET ASSETS- 13 -

Previous fiscal year
(As of April 30, 2008)

Current fiscal year
(As of April 30, 2009)

18,576,099
7,377,090–
1,214,488
2,704,348
718,51242,940278,767
1,658,245
32,570,493

18,712,606
7,576,357
140,000
1,263,593
2,841,871
800,017
43,114273,137
1,751,482
33,402,179

10,726,414
472,000
735,294334,873
12,268,582
44,839,076

10,966,271–
863,110692,253
12,521,635
45,923,815

3,424,170
3,543,738
5,207,517(3,435)
12,171,991

5,057,046
4,247,040
7,127,988(3,912)
16,428,163(131,883)(131,883)
667,405
12,707,512
57,546,589(356,413)(356,413)
37,357
16,109,107
62,032,922

AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009

(2) Consolidated statements of income(In thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses
Promotion expenses
Salaries, allowances and bonuses
Provision for allowance for doubtful accounts
Provision for bonuses
Provision for directors’ bonuses
Provision for retirement benefits
Provision for point certificates
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
Commissions received
Real estate rental revenue
Gain on donation
Consignment income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sales of receivables
Loss on funds managed in investment partnerships
Real estate rental expenses
OthersTotal non-operating expenses
Ordinary income- 14 -

Previous fiscal year
(From May 1, 2007
to April 30, 2008)
106,231,989
92,583,580
13,648,408

Current fiscal year
(From May 1, 2008
to April 30, 2009)
115,387,067
100,141,791
15,245,276

422,067
372,587
2,282,058
2,997
122,398
42,94037,0198,735
430,086
350,789
295,141
1,635,210
275,135
727,075
346,044
1,853,479
9,203,766
4,444,642

438,439
116,6592,546,852
5,967
139,308
6,788
38,192
273,137
504,130
382,315
281,617
1,710,162
304,372
781,508
374,068
2,045,467
9,948,989
5,296,286

26,057
16,57644,85045,55751,146–219,154403,343

31,792
15,54958,74958,12629,47937,69364,493295,883

365,647
70,45910,923
12,39972,789532,218
4,315,767

357,699
63,41739,34637,90752,341
550,711
5,041,458

AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009
(In thousand yen)Previous fiscal year
(From May 1, 2007
to April 30, 2008)
Extraordinary income
Gain on sales of fixed assets
Gain on sales of investments in securities
Insurance receipts
Gain on transfer of business
Reversal of allowance for doubtful accounts
Other extraordinary income
Total extraordinary income
Extraordinary losses
Loss on disposal and sales of fixed assets
Loss on devaluation of investments in securities
Asset impairment losses
Provision for retirement benefits
Provision for point certificates
M&A related losses
Other extraordinary losses
Total extraordinary loss
Income before income taxes and minority interests
Income and other taxes-current
Income taxes-deferred
Total income taxes
Minority interests income
Net income- 15 -

Current fiscal year
(From May 1, 2008
to April 30, 2009)

15,733
0339,277––
28,777383,788

7,152
582
–
77,95328,9662,700
117,355

98,538–266,078
70,718270,031
132,704
150,919
988,990
3,710,566
2,247,529(273,095)
1,974,434
120,148
1,615,983

83,304
67,234
174,735–––
90,380415,654
4,743,158
2,532,794
80,722
2,613,517
1,740
2,127,901

AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009

(3) Consolidated Statements of Changes in Shareholders’ Equity(In thousand yen)Previous fiscal year
(From May 1, 2007
to April 30, 2008)
Shareholders’ equity
Common stock
Balance at the end of previous fiscal year
Changes in the fiscal year
Issuance of new shares
Total changes for the fiscal year
Balance at the end of current fiscal year
Capital surplus
Balance at the end of previous fiscal year
Changes in the fiscal year
Issuance of new shares
Total changes for the fiscal year
Balance at the end of current fiscal year
Retained earnings
Balance at the end of previous fiscal year
Changes in the fiscal year
Dividends from retained earnings
Net income
Total changes for the fiscal year
Balance at the end of current fiscal year
Treasury stock
Balance at the end of previous fiscal year
Changes in the fiscal year
Acquisition of treasury stock
Total change for the fiscal year
Balance at the end of current fiscal year
Total shareholders’ equity
Balance at the end of previous fiscal year
Changes in the fiscal year
Issuance of new shares
Dividends from retained earnings
Net income
Acquisition of treasury stock
Total changes for the fiscal year
Balance at the end of current fiscal year

- 16 -

Current fiscal year
(From May 1, 2008
to April 30, 2009)

3,395,642

3,424,170

28,52828,5283,424,170

1,632,876
1,632,876
5,057,046

3,515,248

3,543,738

28,49028,4903,543,738

703,302703,3024,247,040

3,815,111

5,207,517(223,577)
1,615,983
1,392,406
5,207,517(207,430)
2,127,901
1,920,471
7,127,988(3,435)(3,435)––(3,435)

(477)
(477)
(3,912)

10,722,567

12,171,991

57,018(223,577)
1,615,983–
1,449,424
12,171,991

2,336,178(207,430)
2,127,901(477)
4,256,171
16,428,163

AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009
(In thousand yen)Previous fiscal year
(From May 1, 2007
to April 30, 2008)
Valuation and translation adjustments
Unrealized holding gains on securities
Balance at the end of previous fiscal year
Changes in the fiscal year
Net change in non-shareholders’ equity items for the fiscal
year
Total changes for the fiscal year
Balance at the end of current fiscal year
Total valuation and translation adjustments
Balance at the end of previous fiscal year
Changes in the fiscal year
Net change in non-shareholders’ equity items for the fiscal
year
Total changes for the fiscal year
Balance at the end of current fiscal year
Minority interests
Balance at the end of previous fiscal year
Changes in the fiscal year
Net change in non-shareholders’ equity items for the fiscal
year
Total changes for the fiscal year
Balance at the end of current fiscal year
Total net assets
Balance at the end of previous fiscal year
Changes in the fiscal year
Issuance of new shares
Dividends from retained earnings
Net income
Acquisition of treasury stock
Net change in non-shareholders’ equity items for the fiscal
year
Total changes for the fiscal year
Balance at the end of current fiscal year

- 17 -

Current fiscal year
(From May 1, 2008
to April 30, 2009)(11,934)(131,883)(119,949)(224,529)(119,949)(131,883)(224,529)(356,413)(11,934)(131,883)(119,949)(224,529)(119,949)(131,883)(224,529)(356,413)

615,787

667,405

51,618(630,047)

51,618667,405(630,047)
37,357

11,326,420

12,707,512

57,018(223,577)
1,615,983–

2,336,178(207,430)
2,127,901(477)(68,331)(854,577)

1,381,092
12,707,512

3,401,594
16,109,107

AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009

(4) Consolidated statements of cash flows(In thousand yen)Previous fiscal year
(From May 1, 2007
to April 30, 2008)
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Asset impairment losses
Amortization of goodwill
Loss on devaluation of investments in securities
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in allowance for point certificates
Increase in allowance for retirement benefits
Increase in allowance for bonuses to employees
Increase in allowance for bonuses to directors
Directors’ retirement benefits
Interest and dividend income
Interest expenses
Loss on funds managed in investment partnerships
Gain on donation
Loss (gain) on sales of investments in securities
Loss on disposal and sales of fixed assets
Loss on sales of tangible fixed assets
Loss (gain) on disposal and sales of fixed assets
M&A related loss
Loss (gain) on transfer of business
Decrease in accounts receivable
Decrease (increase) in inventories
Decrease (increase) in other assets
Increase in accounts payable
Increase in other liabilities
Bonuses paid to directors
SubtotalInterest and dividends received
Interest paid
Payments for retirement benefits to directors
Payments for M&A related losses
Income and other taxes paid
Net cash provided by operating activities

3,710,566
968,029
266,078
727,075
16,336(26,032)
278,767
154,522118,016
12,94030,000(40,569)
365,647
10,923(51,146)(0)98,538(15,733)–
132,704–
1,026,441
731,969
959,630
1,210,326
374,199(6,000)11,053,230
36,698(363,600)(30,000)(132,704)(2,139,192)
8,424,432- 18 -

Current fiscal year
(From May 1, 2008
to April 30, 2009)
4,743,158
1,119,069
174,735
860,251
67,234(12,507)(5,629)127,815
81,504
174–(47,341)
357,699
39,346(29,479)(582)––
76,151–(77,953)
451,957(561,109)(374,945)
81,753112,043–
7,183,345
43,957(360,227)––(2,533,652)
4,333,422

AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009
(In thousand yen)Previous fiscal year
(From May 1, 2007
to April 30, 2008)
Cash flows from investing activities
Payments for purchase of tangible fixed assets
Proceeds from sales of tangible fixed assets
Proceeds from business transfer
Payments for purchase of investments in securities
Proceeds from sales of investments in securities
Purchase of shares in affiliated companies
Payments for additional purchase of shares in affiliatedcompanies
Payments for loans receivable
Proceeds from collections of loans
Payments for investments in capital
Proceeds from returns of investments in capital
Payments for purchase of intangible fixed assets
Proceeds from sales of intangible fixed assets
Payments for purchase of investments and other assets
Proceeds from sales of investments and other assets
Decrease in other investments
Proceeds from withdrawal of time deposits
Payments for time deposits
Net cash used in investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments for short-term borrowings
Proceeds from long-term borrowings
Repayments for long-term borrowings
Payments for redemption of bonds
Repayments of lease obligations
Proceeds from issuance of new shares
Payments for purchase of treasury stock
Cash dividends paid
Dividend payments to minority shareholders
Net cash provided by (used in) financing activities
Increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year

- 19 -

Current fiscal year
(From May 1, 2008
to April 30, 2009)(1,607,878)
54,397–(49,772)
21,000(4,936,539)(1,391,679)
90,155
77,953(583,258)
1,264(179,675)(150,000)–(229,996)
184,121(4,115)–(262,850)
1,059(494,099)
413,328–
100,740(20,000)(6,980,603)(94,592)
95,770(590)
60(162,969)
517––
1,269,566
120,024(24)(757,477)

15,017,902(20,198,842)
6,725,000(2,580,986)(226,000)–
57,018–(203,760)(19,726)(1,429,393)
14,434
4,180,709
4,195,144

9,300,000(10,378,000)
4,550,000(3,032,876)(332,000)(70,456)
1,673,724(477)(227,220)(19,730)
1,462,963
5,038,908
4,195,144
9,234,052

AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009

(Segment Information)a) Business segment information
Segment information by business category for recent two fiscal years is as follows.
Previous fiscal year (From May 1, 2007 to April 30, 2008)(In thousand yen)Pharmaceuticalbusiness

Product sales
business

Otherbusinesses

91,989,996

13,973,800

268,192

1,643–

91,991,640

Operating expenses
Operating income (loss)
II. Assets, depreciation andcapital investment
AssetsI. Net sales and operating
income (loss)
Net sales(1) Sales to externalcustomers(2) Inter-segment sales andtransfers
Total

Eliminations /Corporate

Consolidated

106,231,989–

106,231,989

18,747

20,390(20,390)–

13,973,800

286,940

106,252,380(20,390)106,231,989

86,064,764

14,455,093

362,099

100,811,957

905,388

101,787,346

5,926,876(481,293)(75,159)

5,370,422(925,779)

4,444,642

Total

52,038,612

6,510,598

1,244,293

59,793,504(2,246,915)

57,546,589

Depreciation

656,605

183,218

16,754

856,578

14,668871,246

Impairment loss

29,807

113,809

122,461

266,078–

266,078

Capital investment

1,364,329

290,234–

1,654,563

7,072

1,661,636

Current fiscal year (From May 1, 2008 to April 30, 2009)(In thousand yen)Pharmaceuticalbusiness

Product sales
business

Otherbusinesses

Eliminations /Corporate

Consolidated

101,876,835

13,251,729

258,502115,387,067–

115,387,067

–

6,000

18,747

24,747(24,747)–

101,876,835

13,257,729

277,250

115,411,814(24,747)

115,387,067

Operating expenses

95,114,856

13,546,940

359,331

109,021,128

1,069,652

110,090,781

Operating income (loss)
II. Assets, depreciation andcapital investment
Assets

6,761,978(289,211)(82,081)6,390,686(1,094,399)

5,296,286

53,379,642

6,173,970

1,058,864

60,612,477

1,420,445

62,032,922

Depreciation

837,080

174,465

14,486

1,026,032

19,795

1,045,827

Impairment loss

81,894

92,840–174,735–

174,735

Capital investment

1,837,775

217,1208,900

2,063,796

71,5002,135,296

I. Net sales and operating
income (loss)
Net sales(1) Sales to externalcustomers(2) Inter-segment sales andtransfers
Total

Total

(Notes) 1. Business segmentation
Businesses are segmented based on the method adopted for internal management.
2. Individual business segments involve the following activities.
Pharmaceutical business: Management of dispensing pharmacies, franchise operation, consulting service for the opening ofdispensing pharmacies
Product sales business: Selling of pharmaceuticals, cosmetics and household groceries, franchise operation, consulting
service for the opening of shopping centers, management of pharmacies
Other businesses:
Real-estate leasing service
3. In terms of operating expenses, the unclassifiable operating expenses included in “Eliminations / Corporate” are mainly
attributable to the expenses related to the administration unit such as general affairs and accounting departments in the parent
company. These expenses for the previous and current fiscal years are as follows:- 20 -

AIN PHARMACIEZ, INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 2009
Previous fiscal year: ¥905,388 thousand
Current fiscal year: ¥1,069,652 thousand
4. In terms of assets, the corporate assets included in “Eliminations / Corporate” are mainly attributable to the parent company’s
surplus funds (cash and securities), long-term investment funds (investments in securities), deferred tax assets and assets related tothe administration unit. These assets for the previous and current fiscal years are as follows:
Previous fiscal year: ¥ (2,246,915) thousand
Current fiscal year: ¥1,420,445 thousand
5. Consumption taxes are not included in the figures indicated above.
6. Changes in accounting methods(Previous fiscal year)
1) From the current fiscal year, the depreciation method under the revision to the Corporation Tax Law is applied to the tangible
fixed assets acquired on or after April 1, 2007.
This change affected operating expenses in individual segments: “Pharmaceutical business,” “Product sales business” and“Eliminations / Corporate” increased by ¥14,605 thousand, ¥6,249 thousand and ¥39 thousand, respectively while operating
income decreased by the same amount, compared with the figures based on the conventional method.
In addition, associated with the said revision, for the assets acquired on or before March 31, 2007, the difference between theamount equivalent to 5% of the acquisition cost and the memorandum value is evenly depreciated over a period of five years fromthe fiscal year following the fiscal year when the residual value reaches 5% of the acquisition cost.
This change affected operating expenses in individual segments: “Pharmaceutical business,” “Product sales business,” “Other
businesses” and “Eliminations / Corporate” increased by ¥4,364 thousand, ¥1,012 thousand, ¥64 thousand and ¥455 thousand,respectively while operating income decreased by the same amount, compared with the figures based on the conventional method.
2) In terms of the estimated redeemable amount of the purchase points given in the parent company’s Product Sales business, theCompany set a reserve as of the current fiscal year based on the actual redemption in the past.
As a result, operating expenses increased by ¥8,735 thousand while operating income decreased by the same amount in the“Product Sales Business.” Please note that this change to the accounting policies is made after the current interim accounting
period while the conventional method is applied in and before the period.
If the current interim accounting period was subject to the new method, operating expenses would increase by ¥6,779 thousand
while operating income would decrease by the same amount in the “Product Sales Business,” compared with the reported figures.
(Current fiscal year)
Although the Group has previously used lease transaction methods to account for finance and lease transactions not involving
transfers of ownership, it has elected to use accounting procedures for normal sales transactions to account for these transactions
starting from the current fiscal year by applying “Accounting Standards for Lease Transactions” and “Guidance on AccountingStandard for Lease Transactions.”
For finance leases without an ownership transfer for which the lease transaction had started before the fiscal year when thisaccounting standard was introduced, the conventional method was applied.
The effects of this adoption to operating expenses and income of each segment are negligible.

b) Segment information by location
This is not applicable because the Company has no subsidiary or important branch office located in foreign countries.
c) Overseas sales
This is not applicable because the Company has no sales in foreign countries.

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