Summary of Financial Statements for the Second Quarter of Fiscal Year Ending April 2023
[Japan GAAP] (Consolidated)

December 2, 2022

Name of listed company:

AIN HOLDINGS INC.

Exchange listed on:

Prime Market of Tokyo Stock Exchange and Sapporo Securities Exchange

Code number:

9627

URL:

https://www.ainj.co.jp/

Representative:
Inquiries:

Kiichi Otani, President and Representative Director
Toshihide Mizushima, Representative Senior Managing Director
TEL: +81-11-814-1000
Date of filing quarterly securities report:
December 15, 2022–

Start of dividend payment:

Yes (Supplementary materials for the quarterly results are disclosed on the

Supplementary documents for quarterly results:

Company’s website appropriately as the financial statements.)

Quarterly results briefing:

Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen.)
1. Consolidated results for the second quarter of fiscal year ending April 30, 2023 (May 1, 2022 to October 31, 2022)(1) Consolidated operating results(Percentage figures show year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen% Million yen% Million yen% Million yen%
Six months ended October 31, 2022
Six months ended October 31, 2021
(Note) Comprehensive income:

171,204

11.9

18.9

3,804

14.0

152,972
5.2
5,776
47.1
6,127
35.6
Six months ended October 31, 2022: ¥3,769 million (+13.8%)
Six months ended October 31, 2021: ¥3,311 million (+24.3%)

3,338

26.9

Earnings
per share

6,784

17.5

7,283

Diluted earnings
per share
Yen

Yen

Six months ended October 31, 2022

108.30-Six months ended October 31, 2021

94.68

-

(2) Consolidated financial position
Total assets

Net assets

Million yen
As of October 31, 2022

231,141

Million yen
120,869

As of April 30, 2022

212,461

119,010(Reference) Shareholders’ equity: As of October 31, 2022: ¥120,790 million

Shareholders’ equity ratio
%
52.3
56.0

As of April 30, 2022: ¥118,923 million

2. Dividends

Year ended April 30, 2022

End of firstquarterYen-

End of second
quarter
Yen
0.00

0.00
Year ending April 30, 2023
Year ending April 30, 2023
(forecast)(Note) Revision to the most recently announced dividend forecasts: No

Dividend per share
End of third
quarterYen-

End of year

Full year

Yen

Yen

55.00

55.00

60.00

60.00

3. Consolidated financial forecasts for the fiscal year ending April 30, 2023 (May 1, 2022 to April 30, 2023)(Percentage figures show year-on-year changes.)
Profit attributable toEarnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Million yen%
Million yen%
Million yen%
Million yen%
Yen
Full year

363,000

14.8

20,00032.1

20,50027.8

11,00055.1

313.15(Note) Revision to the most recently announced consolidated financial forecasts: No*Notes(1) Major changes in subsidiaries during the period (changes in specified subsidiaries resulting from changes in scope of
consolidation): No
Newly consolidated: –Excluded: –(2) Application of specified accounting methods for the preparation of quarterly consolidated financial statements: Yes(Note) For detail, please refer to “2. Quarterly consolidated financial statements and major notes (4) Notes on quarterly consolidated
financial statements” on page 10 of the Attachment.

(3) Changes in accounting principles, changes in accounting estimates, and restatement of revisions
1) Changes in accounting principles as a result of revisions to accounting standards, etc.:
Yes2) Changes in accounting principles other than 1):
No3) Changes in accounting estimates:
No4) Restatement of revisions:No(4) Number of outstanding shares (common stock)1) Number of outstanding
shares (including treasury
As of October 31, 2022
stock):
2) Number of shares held in
As of October 31, 2022
treasury:
3) Average number ofSix months ended
shares outstanding:
October 31, 2022

35,428,212 shares As of April 30, 2022

35,428,212 shares

298,188 shares As of April 30, 2022

300,911 shares

Six months ended
October 31, 2021

35,260,638 shares

35,128,208 shares*This Summary of Financial Statements is outside the scope of quarterly review procedures.
*Statement regarding the proper use of financial forecasts and other special remarks(Caution concerning forward-looking statements)
The above forecasts are calculated based on the information available as of the publication date of this material, and actual
financial results may vary due to change in future economic conditions and others.

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2023

Contents of the Attachment
1. Qualitative information on consolidated results for the period under review .................................................................. 2(1) Consolidated operating results .............................................................................................................................. 2(2) Consolidated financial position .............................................................................................................................. 2(3) Forecast of consolidated financial results and other forward-looking information ..................................................... 3
2. Quarterly consolidated financial statements and major notes ...................................................................................... 4(1) Quarterly consolidated balance sheet .................................................................................................................... 4(2) Quarterly consolidated statements of income and comprehensive income .............................................................. 6
Quarterly consolidated statements of income ........................................................................................................... 6
Quarterly consolidated statements of comprehensive income ................................................................................... 7(3) Quarterly consolidated statements of cash flows .................................................................................................... 8(4) Notes on quarterly consolidated financial statements ........................................................................................... 10(Notes on the premise of a going concern) ............................................................................................................. 10(Notes on significant changes in the amount of shareholders' equity) ...................................................................... 10(Application of specified accounting methods for the preparation of quarterly consolidated financial statements) ...... 10(Changes in accounting policies) ........................................................................................................................... 10(Segment information, etc.)..................................................................................................................................... 11

1

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2023

1. Qualitative information on consolidated results for the period under review(1) Consolidated operating results
During the first six months of the current fiscal year (May 1, 2022 to October 31, 2022), there were signs of a moderate
recovery in the Japanese economy, but the outlook remained uncertain due to factors such as the impact of the COVID-19
pandemic, rising prices, and fluctuations in capital and financial markets.
In this economic environment, the AIN HOLDINGS Group (the Group) made concerted efforts to ensure the continued
provision of healthcare and retail services by taking rigorous steps to prevent infection at dispensing pharmacies and stores.
The Group also played its part in preventing the spread of infection in communities by providing medical antigen test kits at
approximately 1,100 pharmacies and by offering free antigen and PCR testing at around 800 pharmacies.
In September 2022, the Group published its Integrated Report 2022 as part of efforts to strengthen communication withstakeholders. The report provides information on the Group’s concrete initiatives to address key areas of materiality, as wellas its human resources strategy, DX strategy and other measures to enhance value over the medium and long term. Goingforward, we will implement various initiatives to realize sustainability management that supports the Group’s continued
growth and creates social, environmental and economic value.
In the first six months of the fiscal year, net sales increased 11.9% year on year to ¥171,204 million, operating profit
increased 17.5% to ¥6,784 million, ordinary profit increased 18.9% to ¥7,283 million, and profit attributable to owners ofparent increased 14.0% to ¥3,804 million.
Financial results by business segment are as follows.
(Dispensing pharmacy business)
The Group is working to leverage the primary care capabilities of its pharmacists and dispensing pharmacies to help
patients access medical services in their local community with peace of mind. Specifically, the Group is reinforcing
pharmaceutical management and guidance and home-based healthcare, backed by integrated and continuous monitoringof patient medication data through cooperation with medical institutions and the use of patient medication notebooks andother means.
We have also put in place systems for patients to continuously receive prescription medication with even greater peace ofmind, backed by our official dispensing pharmacy app, Anytime AIN Pharmacy. Released in February 2022, the app gives
patients access to online pharmaceutical guidance services, advice from primary care pharmacists and pharmacies, and arange of other services.
In business development, we continue to target further business expansion through a strategy of actively opening large
pharmacies and pursuing M&A deals that emphasize investment returns, while also improving pharmacy operating efficiency.
For the first six months of the fiscal year, the dispensing pharmacy business reported higher sales and profits comparedwith the same period a year earlier due to a recovery in the number of prescriptions at existing pharmacies and a strong
performance by pharmacies opened in the previous fiscal year. Sales increased 11.9% to ¥153,248 million and segment
profit rose 2.6% to ¥10,769 million.
During the first six months of the fiscal year, the Group opened a total of 124 dispensing pharmacies, including thoseacquired through M&A deals, closed eight dispensing pharmacies and sold six, resulting in a total of 1,209.
(Cosmetic and drug store business)
In the cosmetic and drug store business, COVID-19 continued to impact performance, but we reviewed and overhauled
our portfolio of original brands as part of ongoing efforts and also create appealing sales areas that are unique to the AINGroup. As a result, for the first six months of the fiscal year, the cosmetic and drug store business reported net sales of¥12,205 million, up 24.3% year on year, and segment profit of ¥349 million, compared with a segment loss of ¥1,125 million
in the same period a year earlier, supported by changes to the product mix and store opening criteria.
During the same period, the Group opened four AINZ & TULPE cosmetic and drug stores and closed four stores, resulting
in a total of 78 cosmetic and drug stores at the end of the second quarter.
(Other businesses)
Net sales from other businesses decreased 8.2% year on year to ¥5,781 million and segment loss was ¥18 million
compared with the loss of ¥121 million a year earlier.
(2) Consolidated financial position
The balance of total assets at the end of the second quarter increased by ¥18,680 million from the end of the previous
fiscal year to ¥231,141 million. This mainly reflected increases for goodwill and merchandise, etc. due to the opening of newstores and dispensing pharmacies, including sites acquired through M&A.
The balance of liabilities increased ¥16,821 million to ¥110,272 million. The main factors were increases for accounts
payable and borrowings.
2

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2023

The balance of short- term and long-term borrowings increased by ¥5,356 million to ¥13,814 million. The main factor was
the subsidiary newly included in the scope of consolidation from the first quarter of the current fiscal year.
Total net assets increased by ¥1,858 million to ¥120,869 million and the shareholders’ equity ratio decreased 3.7
percentage points to 52.3%.
(Cash flows)
In the first six months of the fiscal year, cash and cash equivalents (“cash”) decreased by ¥15,955 million from the previous
fiscal year end to ¥43,514 million.
Cash flows from each activity and their relevant factors are as follows.
During the first six months of the fiscal year, net cash provided by operating activities was ¥8,456 million, compared with
¥17,314 million provided in the same period a year earlier. The main cash inflows were profit before income taxes of ¥7,165
million, depreciation and amortization of ¥2,567 million and amortization of goodwill of ¥2,115 million. The main cash outflows
were increase in inventories of ¥4,890 million and income taxes paid of ¥4,458 million.
Net cash used in investing activities amounted to ¥18,617 million, compared with ¥8,261 million used in the same perioda year earlier. The main cash outflows were ¥14,602 million for purchase of shares of subsidiaries resulting in change inscope of consolidation and ¥5,680 million for purchases of property, plant and equipment and intangible fixed assets.
Net cash used in financing activities totaled ¥5,793 million, compared with ¥5,630 million used in the same period a year
earlier. The main cash outflows were net repayment of ¥3,605 million from short-term and long-term debt repayment andproceeds, and ¥1,932 million for cash dividends paid.
(3) Forecast of consolidated financial results and other forward-looking information
There are no changes to the Group’s consolidated financial forecasts for the first six months or the fiscal year ending April
30, 2023, which were released on June 3, 2022.

3

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2023

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

Fiscal year endedApril 30, 2022
(As of April 30, 2022)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise
Supplies
Short-term loans receivable
Accounts receivable - other
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Leasehold and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4(Million yen)Six months ended
October 31, 2022
(As of October 31, 2022)

59,729
10,11014,568222
306
11,832
3,995
100,765

46,723
12,147
21,231
208
230
14,635
3,111
98,28817,512
8,581
4,542
30,636

19,983
10,585
6,334
36,90336,352
4,866
41,21948,388
5,328
53,7172,503
5,319
22,785
10,526(1,294)
39,840111,696
212,461

2,811
6,069
23,07011,604(1,322)
42,232
132,853
231,141

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2023

Fiscal year endedApril 30, 2022
(As of April 30, 2022)

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Income taxes payable
Deposits received
Provision for bonuses
Provision for bonuses for directors
Contract liabilities
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5(Million yen)Six months ended
October 31, 2022
(As of October 31, 2022)

50,756
2,643
4,391
15,415
2,713
18
544
5,321
81,80560,7193,776
3,506
16,540
3,851
31
598
4,284
93,308

5,815
3,578
2,252
11,64593,45010,038
4,360
2,564
16,964110,272

21,89420,50078,661(2,018)
119,038

21,89420,50480,533(2,000)120,932

(39)
(75)
(114)
86
119,010
212,461

(78)
(63)
(141)
78
120,869
231,141

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2023

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statements of income(Million yen)Six months ended
October 31, 2022
(May 1, 2022 to
October 31, 2022)

Six months ended
October 31, 2021
(May 1, 2021 toOctober 31, 2021)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Commission income
Rental income from real estate
Outsourcing service income
Subsidy income
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sale of receivables
Rental expenses on real estate
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sale of businesses
Surrender value of insurance policies
Gain on step acquisitions
Other
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses
Loss on cancellation of rental contracts
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

6

152,972
130,133
22,83817,062
5,776

171,204
146,217
24,98618,202
6,784

21
21
4
281
73
47

23
31
10
97
106
96

2

–

208
660

320
686

22
41
199
46
309
6,127

27
48
42
68
187
7,283

26
5
–
131
3
167

2
46
35
–
1
86

54
6
118
50
230
6,064
2,736
3,328
(10)
3,338

118
63
–
23
204
7,165
3,368
3,796
(8)
3,804

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2023

Quarterly consolidated statements of comprehensive income
Six months ended
October 31, 2021
(May 1, 2021 toOctober 31, 2021)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income (loss) attributable tonon-controlling interests

7(Million yen)Six months ended
October 31, 2022
(May 1, 2022 to
October 31, 2022)

3,328

3,796

(37)
20
(16)
3,311
3,321

(39)
12
(26)
3,769
3,777

(10)

(8)

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2023

(3) Quarterly consolidated statements of cash flows

Cash flows from operating activities
Profit before income taxes
Depreciation
Share-based payment expenses
Amortization of goodwill
Impairment losses
Loss (gain)on step acquisitions
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in contract liabilities
Increase (decrease) in retirement benefit liability
Loss (gain) on sale of businesses
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on investments in investment partnerships
Gain on receipt of donated non-current assets
Loss (gain) on sales of investment securities
Loss (gain) on sale and retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other assets
Decrease (increase) in accounts receivable - other
Increase (decrease) in trade payables
Increase (decrease) in other liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities

8(Million yen)Six months ended
October 31, 2022
(May 1, 2022 to
October 31, 2022)

Six months ended
October 31, 2021
(May 1, 2021 toOctober 31, 2021)

6,064
2,117
–
2,055
6
(131)
3
65
193
(5)
859

7,165
2,567
21
2,115
63
–
(9)
53
(606)
(46)
676

6

12

(43)
22

(55)
27

(2)

–

(13)
(10)
0
27
4,245
(1,707)
1,236(1,316)
3,983
1,544
19,20342(22)(1,907)
17,314

(34)
(27)
0
115
1,694
(4,890)
1,025(1,659)5,255(584)
12,88161(27)(4,458)8,456

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2023

(Million yen)Six months ended
October 31, 2021
(May 1, 2021 toOctober 31, 2021)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Loan advances
Proceeds from collection of loans receivable
Payments for investments in capital
Proceeds from divestments
Purchase of intangible assets
Proceeds from sale of intangible assets
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Decrease (increase) in investments and other assets
Proceeds from withdrawal of time deposits
Payments into time deposits
Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Redemption of bonds
Repayments of lease obligations
Purchase of treasury shares
Dividends paid
Net cash used in financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period

9

Six months ended
October 31, 2022
(May 1, 2022 to
October 31, 2022)(2,663)
626
(105)
184

(4,313)
1,380
(397)
344

(2,223)(14,602)

(23)
231
(0)
0
(927)
10
(3,104)

(110)
274
(0)
0
(1,367)
0
(444)

540

586

(833)
32
(6)
(8,261)

(123)
362
(206)
(18,617)(2)
0(2,091)(124)(64)(1,400)(1,948)(5,630)3,422
55,00958,432(123)
10(3,492)
(240)
(16)
–
(1,932)(5,793)(15,955)
59,47043,514

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2023

(4) Notes on quarterly consolidated financial statements(Notes on the premise of a going concern)
There are no applicable matters to be reported.

(Notes on significant changes in the amount of shareholders’ equity)
There are no applicable matters to be reported.
(Application of specified accounting methods for the preparation of quarterly consolidated financial statements)
To calculate tax expenses, the effective tax rate on income before income taxes for the consolidated fiscal year after theapplication of tax effect accounting is reasonably estimated and the estimated rate is applied to income before income taxes
for the quarterly period.
(Changes in accounting policies)(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 31, June 17,2021; “Fair Value Measurement Standard”), etc. from the beginning of the first quarter. In accordance with the transitional
treatment stipulated in Paragraph 27-2 of the “Fair Value Measurement Standard”, the Company has decided to apply the
new accounting policies in the Fair Value Measurement Standard going forward. These changes have no impact on the
Company’s quarterly consolidated financial statements.

10

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2023

(Segment information, etc.)
I Six months ended October 31, 2021 (May 1, 2021 to October 31, 2021)
1. Net sales and profit (loss) by reportable segment(Million yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Reportable segments
Adjustments(Note) 1

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses(1) Sales to third parties

136,905

9,816

6,250

152,972-

152,972(2) Intersegment sales

-

-

47

47

(47)

-

136,905

9,816

6,297

153,019(47)

152,972

10,491(1,125)

(121)

9,244

(3,117)

6,127

Total

Sales

Total sales
Segment profit (loss)
Notes:

1. The adjustment of ¥(3,117) million to segment profit (loss) includes ¥3,659 million in corporate expenses, ¥(702)million in (income) loss that are not allocated to reportable segments, and ¥159 million in eliminations due tointersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions and the system
logistics division, which are not part of the reportable segments.
2. Segment profit (loss) is adjusted with the ordinary profit of quarterly consolidated statements of income.

2. Impairment losses on fixed assets and goodwill by reportable segment[Significant impairment losses on fixed assets]:
There are no applicable matters to be reported.
[Significant changes in the amount of goodwill]:
There are no applicable matters to be reported.

11

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2023

II Six months ended October 31, 2022 (May 1, 2022 to October 31, 2022)
1. Net sales and profit (loss) by reportable segment(Million yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Reportable segments
Adjustments(Note) 1

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses(1) Sales to third parties

153,248

12,2055,750

171,204-

171,204(2) Intersegment sales

-

-

31

31

(31)

-

153,248

12,205

5,781

171,235(31)

171,204

10,769349(18)

11,099(3,816)

7,283

Total

Sales

Total sales
Segment profit (loss)
Notes:

1. The adjustment of ¥(3,816) million to segment profit (loss) includes ¥4,419 million in corporate expenses, ¥(589)
million in (income) loss that are not allocated to reportable segments, and ¥(13) million in eliminations due tointersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions and the system
logistics division, which are not part of the reportable segments.
2. Segment profit (loss) is adjusted with the ordinary profit of quarterly consolidated statements of income.

2. Impairment losses on fixed assets and goodwill by reportable segment[Significant impairment losses on fixed assets]:
There are no applicable matters to be reported.
[Significant changes in the amount of goodwill]:
In the dispensing pharmacy business segment, Pharmacy Holdings Co. Ltd. and its subsidiaries were included in thescope of consolidation from the first quarter of the current fiscal year following the acquisition of all shares in Pharmacy
Holdings Co. Ltd. In the first six months of the fiscal year, the increase in goodwill related to these companies was ¥12,921
million.
This goodwill amount is a tentative calculation, as the allocation of acquisition costs has not been completed.

12