Summary of Financial Statements for Fiscal Year Ended April 2013
May 28, 2013
Name of listed company:

AIN PHARMACIEZ INC.

Exchange listed on:First Section of Tokyo Stock Exchange and Sapporo Securities Exchange

Code number:

9627

URL:

http://www.ainj.co.jp/

Representative:
Inquiries:

Kiichi Otani, President and Representative Director
Toshihide Mizushima, Senior Managing Director and Chief Director of Administration
TEL: +81-11-783-0189
Date of the ordinary general meeting of shareholders:
July 30, 2013
Date of scheduled payment of dividends:

July 31, 2013

Date of filing securities report:

July 31, 2013

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 2013 (from May 1, 2012 to April 30, 2013)(Percentage figures show year-on-year changes.)(1) Consolidated operating results
Net sales
Million yen

Operating income%

154,560
Year ended April 30, 2012 142,790

8.2
10.4

Year ended April 30, 2013

(Note) Comprehensive income:Million yen

Ordinary income%

9,701
10,253(5.4)
26.5

Million yen

10,292
10,547

Year ended April 30, 2013: ¥5,407 million (+ 9.3%)
Year ended April 30, 2012: ¥4,947 million (+29.4%)

Net income
per share

Diluted net income
per share

Return on equity

318.37307.35

－
－

14.1
15.5

Yen

Year ended April 30, 2013
Year ended April 30, 2012

Yen%

Net income%

Million yen

(2.4)
28.5

5,075
4,899

%

3.6
25.1

Ordinary income
to total assets

Operating income
to net sales

11.3
13.0

6.3
7.2

%

%

(Reference) Equity in earnings of affiliates: Year ended April 30, 2013: ¥ － million, Year ended April 30, 2012: ¥ － million(2) Consolidated financial position
Total assets

Net assets

Million yen

Million yen

95,83985,908

As of April 30, 2013
As of April 30, 2012

Shareholders’ equity ratio%

38,35633,745(Reference) Equity capital: As of April 30, 2013: ¥38,312 million,

2. Dividends

Yen

Year ending April 30,
2014 (forecast)Million yen(8,503)(9,010)2Q-end
Yen

－

0.00
0.00

－

0.00

－

3Q-endYen

Year-end
Yen

Cash and cash
equivalents
at end of year

Million yen

803(2,131)Dividends per share
1Q-endYear ended April 30, 2012
Year ended April 30, 2013

Cash flows fromfinancing activities

Million yen

10,203
11,6792,403.43
2,113.79

April 30, 2012: ¥33,695 million

Cash flows frominvesting activities

Million yen
Year ended April 30, 2013
Year ended April 30, 2012

Yen

40.0
39.2

(3) Consolidated cash flows
Cash flows fromoperating activities

Net assets per share

Annual
Yen

－
－

50.00
60.00

50.00
60.00

－

60.00

60.00

Total
dividends(annual)Million yen

797
956

18,43915,935

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

16.3
18.8

15.4

2.5
2.7

3. Consolidated financial forecast for the fiscal year ending April 30, 2014 (from May 1, 2013 to April 30, 2014)(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

81,590

8.7

4,912

16.7

5,122

15.0

2,550

19.3

159.96

Full year

172,000

11.3

11,28016.3

11,650

13.2

6,000

18.2

376.31* Notes(1) Major changes in subsidiaries during the fiscal year (changes in specified subsidiaries resulting in changes inscope of consolidation): Yes
Newly consolidated: -Excluded: One company (AIN MEDICAL SYSTEMS Inc.)(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:
Yes
4) Restatement of revisions:No(3) Number of outstanding shares (common stock):1) Number of outstanding
shares (including treasury As of April 30, 2013
stock):
2) Number of shares held in
As of April 30, 2013
treasury:
3) Average number of
Fiscal year endedApril 30, 2013
shares outstanding:

15,944,106 shares As of April 30, 2012

15,944,106 shares

3,366 shares As of April 30, 2012

3,316 shares

15,940,744 sharesFiscal year endedApril 30, 2012

15,940,880 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, 2013

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 .............. 6(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 sheets...................................................................................................................................... 13(2) Consolidated statements of income and comprehensive income .......................................................................... 15(3) Consolidated statements of changes in net assets .................................................................................................. 18(4) Consolidated statements of cash flows ..................................................................................................................... 20(Segment Information, etc.) .............................................................................................................................................. 22-1-

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013

1. Analysis of Operating results and Financial Position(1) Analysis of operating results
During the fiscal year ended April 30, 2013, there were growing expectations that the Japanese economy was
gradually heading for recovery. This reflected signs of an upturn in corporate earnings, particularly at major
companies, due to an improvement in the export environment and the impact of economic stimulus measuresand monetary policy, as well as a pickup in consumer spending and production activity supported by improving
consumer confidence.
In this economic environment, the AIN PHARMACIEZ Group (the Group) aggressively expanded its
dispensing pharmacy business and urban drug and cosmetic store business by opening new stores and using
M&A, and launched a number of new initiatives, such as the comprehensive development of medical malls andthe revitalization of existing stores.
For the fiscal year under review, the Group reported net sales of ¥154,560 million, an increase of 8.2% year
on year due to the opening of new dispensing pharmacies and urban drug and cosmetic stores, as well as theimpact of M&A in the dispensing pharmacy business. However, ordinary income declined 2.4% to ¥10,292
million, mainly reflecting the impact of upfront investment in the medical mall development business. Net
income increased 3.6% year on year to ¥5,075 million. As of the end of the fiscal year, the number of stores in
the Group totaled 621, a net increase of 71 stores from the end of the previous fiscal year.
Performance by business segment was as follows.
(Dispensing pharmacy business)
The earnings capacity of the existing dispensing pharmacies has declined slightly due to the impact of drug
price and dispensing fee revisions in April 2012, which included an average reduction in drug prices of 6.25%.
Under these conditions, the Group is aiming to boost profits by expanding the scale of the business.
Specifically, the Group is maintaining steady sales by continuing to actively open and develop new stores. It isalso seeking to aggressively tap the growing number of M&A opportunities in the sector due to changes in thebusiness environment, while emphasizing returns on investment.
In addition, the Group began implementing measures at existing dispensing pharmacies to fundamentally
rebuild drug dispensing processes and dispensing pharmacy management methods in order to enhance safety
and boost productivity.
The medical mall development business requires comprehensive support from across the Group, including
the operation of dispensing pharmacies—the Group’s core business—property development and marketing to
attract clinics to the malls. The medical mall development business began full-scale operations from the fiscal
year under review. The business has already opened 15 medical malls, mainly in the Tokyo metropolitan area,and has finalized a joint project with Kintetsu Corporation to develop one of Japan’s largest medical floors in
ABENO HARUKAS, a new skyscraper that is set to become the country’s tallest mixed-use building (Abeno-ku,
Osaka; 60 above ground floors, five below ground; scheduled to open April 2014).
The dispensing pharmacy business reported net sales of ¥137,291 million, an increase of 8.0% year on year,
and segment income of ¥12,655 million, up 3.0%. During the fiscal year under review, the Group opened 76
dispensing pharmacies, including those operated by 11 companies that became Group subsidiaries throughM&A deals, and closed 10 dispensing pharmacies, resulting in a total of 560.

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AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013

(Drug and cosmetic store business)
There were some signs of an upturn in the retail sector as a whole from the fourth quarter of the fiscal year
under review, but the drugstore sector continued to face a challenging market environment due to market
entrants from different sectors and a narrowing strategic gap and price competition between companies within
the sector. This was compounded by a decline in demand compared with the previous fiscal year, when
demand spiked after the Great East Japan Earthquake.
Against this backdrop, the business is working to secure profits by continuing to open urban drug andcosmetic stores under the ainz & tulpe brand and by enhancing the appeal of existing stores.
With ainz & tulpe, the business is aiming to boost sales capabilities and increase the gross margin bycontinually strengthening merchandise lineups, particularly for drug and cosmetic products, in order to clearlycommunicate to consumers the shop’s concept as a drug and cosmetics retailer.
Also, in sales promotion, the business joined the Smapo smartphone application-based shopping points
program, and worked on transferring Ainz Point Club Card holders to a mobile-based system.
As of the end of the fiscal year under review, 227,000 point club card holders, out of a total of 3 million, had
become mobile-based members. This number includes existing members who have been transferred to themobile system and newly signed up members. In general, mobile club card holders tend to shop in our stores
more regularly, and we plan to attract more members to the system to increase the number of repeat customers
and enhance cost efficiency.
In May 2013, we established a new online sales division, which is now working to launch an online businessbased on the ainz & tulpe shop’s concept.
During the period under review, the business opened a number of new ainz & tulpe format stores in station
retail areas and prime locations near stations. These included the ainz & tulpe Nakano Central Park East Store(Nakano-ku, Tokyo), the Marui Kinshicho Store (Sumida-ku, Tokyo), the Shibuya Center-Gai Store (Shibuya-ku,
Tokyo), the Yokohama Porta Store (Nishi-ku, Yokohama), the Tokorozawa Station Store (Tokorozawa-shi,
Saitama Prefecture), the KYOTO AVANTI Store (Minami-ku, Kyoto) and Sakurano Hirosaki Store (Hirosaki-shi,
Aomori Prefecture), resulting in a Group total of 61 drug and cosmetics stores.
As a result, the drug and cosmetic store business reported net sales of ¥16,735 million, an increase of 8.7%
year on year, and segment income of ¥14 million, down 88.6%.
(Other businesses)
Net sales of other businesses totaled ¥533 million, an increase of 104.2% year on year, and the segment
losses totaled ¥398 million, a deterioration of 176.9% year on year mainly due to upfront rental costs incurredahead of the opening of new medical malls.
In the fiscal year ending April 30, 2014, the dispensing pharmacy business will continue to open newdispensing pharmacies near hospitals and medical malls with dispensing pharmacies, and actively seek M&A
opportunities. The drug and cosmetic store business will also continue to open ainz & tulpe urban drug andcosmetic stores. These store development programs are aimed at creating a combined network of more than
85 dispensing pharmacies and urban drug and cosmetic stores to drive the Group’s continued businessexpansion.
We expect the market environment in the dispensing pharmacy business to become more challenging due-3-

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013

to factors such as the planned increase in consumption tax and the next round of drug price and dispensing
fee revisions, scheduled for April 2014.
The Group will work to generate profits from the next fiscal year by expanding the scale of the businessthrough new store openings, M&A and other measures, improving the performance of existing dispensing
pharmacies through a fundamental improvement in operations, and investing in IT systems to enhance theGroup’s ability to analyze business conditions.
In the drug and cosmetic store business, the Group will continually upgrade sales areas and strengthen themerchandise lineup, as well as increase membership in the mobile-based Ainz Point Club Card system andactively use sales promotion methods linked with social network service applications to enhance its ability tocommunicate information about the ainz & tulpe brand and boost earnings on a store-by-store basis.
Based on these initiatives, the Group forecasts net sales for the fiscal year ending April 30, 2014 of¥172,000 million, up 11.3% year on year, ordinary income of ¥11,650 million, up 13.2%, and net income of¥6,000 million, an increase of 18.2%.

(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 ¥2,842 million to ¥43,162
million compared to ¥40,320 million at the end of the previous fiscal year.
This mainly reflected cash on hand and in banks of ¥18,460 million, up ¥2,525 million year on year due to wider
use of the securitization of dispensing fee receivables, notes and accounts receivable of ¥7,043 million, down
¥3,941 million, and other accounts receivable of ¥7,180 million, up ¥4,422 million.
Fixed assets at the end of the fiscal year under review increased by ¥7,106 million to ¥52,676 million
compared to ¥45,570 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 increased by ¥2,293 million to ¥17,550 million, while goodwill rose ¥1,909 million to ¥19,574 million.
In addition, investments and other assets increased by ¥2,862 million year on year to ¥14,520 million, chiefly
reflecting an increase in deposits and guarantees.
Liabilities increased by ¥5,321 million to ¥57,483 million compared to ¥52,162 million at the end of the previous
fiscal year.
This primarily reflected accounts payable of ¥24,084 million, up ¥1,559 million year on year, short-term debt of¥7,483 million, up ¥1,085 million, and long-term debt of ¥8,048 million, up ¥1,730 million.
As a result of the above, the balance of current liabilities increased by ¥2,741 million from the previous
year-end balance of ¥42,945 million to ¥45,686 million, and the balance of long-term liabilities increased by¥2,579 million from the previous year-end balance of ¥9,216 million to ¥11,796 million.
Net assets increased by ¥4,610 million to ¥38,356 million compared to ¥33,745 million at the end of theprevious fiscal year.
This was because the balance of retained earnings rose ¥4,278 million to ¥21,704 million due to the growth ofretained earnings during the fiscal year.
Net unrealized gains on available-for-sale securities totaled ¥57 million.

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AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013

As a result of the above factors, shareholders’ equity ratio improved 0.8 percentage points to 40.0%,
compared with 39.2% 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 ¥2,504 million (15.7%) year on
year to ¥18,439 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.
Cash flows from each category and their relevant factors are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥10,203 million, a decrease of 12.6% year on year.
The main items that were positive for cash flow were income before income taxes and minority interests of¥9,694 million, as well as depreciation and amortization of ¥2,212 million and amortization of goodwill of ¥1,784
million related to business expansion through new store openings and M&A. Decrease in accounts receivableof ¥4,672 million, related to wider use of the securitization of dispensing fee receivables, also had a positive
impact on operating cash flow.
The main items that were negative for cash flow were increase in other accounts receivable of ¥4,268 million
and income taxes paid of ¥4,947 million.
(Cash flows from investing activities)
Net cash used in investing activities totaled ¥8,503 million, a decrease of 5.6% year on year.
This was mainly due to payments of ¥3,266 million for purchases of property, plant and equipment related to
new openings and refurbishments of urban drug and cosmetic stores and dispensing pharmacies, and ¥2,923
million for purchases of subsidiaries’ shares resulting in obtaining controls related to shares acquired in elevencompanies through M&A deals.
(Cash flows from financing activities)
Net cash provided by financing activities totaled ¥803 million, compared with cash of ¥2,131 million used in
the previous fiscal year.
This was mainly attributable to net short-term debt procurement of ¥850 million and net long-term debt
procurement of ¥1,181 million.
Cash dividends paid totaled ¥797 million.
Changes in the Group’s cash flow indicators are shown below.
Year ended

Year ended

Year ended

Year endedApril 30, 2010

April 30, 2011

April 30, 2012

April 30, 2013

32.5

38.3

39.2

40.0

62.5

64.5

79.6

79.3

Debt redemption term (years)

2.3

1.7

1.1

1.7

Interest coverage ratio (times)

22.1

31.4

73.6

70.3

Shareholders’ equity ratio (%)
Equity ratio based on market value(%)

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.

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AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013
*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
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 of ¥60 per share, an increase of ¥10
per share compared with the previous fiscal year’s ordinary dividend of ¥50.
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, 2014, 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, 2013

(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 are similarly 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).
As the dispensing pharmacy business accounted for 88.8% of net sales in the fiscal year under review, we-7-

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013

plan 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.
•

Group training for newly graduated pharmacists and training programs for mid-career pharmacists
when joining the Company•

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•

Establishment of a Safety Policy Office specializing in measures to prevent dispensing errors-8-

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013(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¥18,460 million, compared with a total balance of short- and long-term debt of ¥15,531 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, 2013

2. State of the GroupThe Group consists of AIN PHARMACIEZ INC. (the Company), 25 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 19 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, 2013

Dispensing pharmacy operation

Dispensing and sales ofdrugs

Patients

AIN MEDIO Inc. *1

Asahi Pharmacy Co., Ltd. *1(and 19 other consolidated subsidiaries)

Wholesale of generic drugs, etc.
WHOLESALE STARS Co., Ltd. *1

Sales of generic drugs, etc.

MEDIWEL Corp. *1
Medical Development Co., Ltd. *1- 11 -

Building leasing

Group companies/
General contract
counterparties

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

Sales of cosmetics,
drugs, etc.

Consumers

Drug and cosmetic
Other
store businessbusinesses

Medical Development Co., Ltd. *1

Various types of consulting
Support of staff dispatching,introduction, and recruitment

Contract
counterparties

Medical consulting

Pharmacies/
Medical institutions

YAGI PHARMACY Inc. *2

AIN PHARMACIEZ INC.

Dispensing pharmacy business

DAICHIKU Co., Ltd. *1

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013

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, 2013

4. Consolidated financial statements(1) Consolidated balance sheets
Previous fiscal year
(As of April 30, 2012)
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
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)

Current fiscal year
(As of April 30, 2013)15,935,326
10,985,402
8,138,749
114,663891,515
606,000
2,757,752
917,774(26,875)
40,320,310

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

13,191,262(6,142,308)
7,048,953
5,621,786
824,9124,758,735(2,997,483)
1,761,251
15,256,904

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

17,664,823
990,546
18,655,369

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

2,825,629
1,122,782
5,758,338
2,208,196(256,986)
11,657,961
45,570,235

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

17,74817,74885,908,294

1,296
1,296
95,839,919

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013

Liabilities
Current liabilities
Accounts payable
Short-term debt
Accrued income taxes
Deposits received
Allowance for bonuses to employees
Allowance for bonuses to directors
Reserve for reward obligations
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term debt
Allowance for retirement benefits
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income (losses)
Unrealized holding gains (losses) on securities
Total accumulated other comprehensive income (losses)
Minority interests
Total net assets
Total liabilities and net assets- 14 -(Thousand yen)Previous fiscal year
(As of April 30, 2012)

Current fiscal year
(As of April 30, 2013)

22,524,795
6,397,458
2,739,772
7,714,207
965,445
12,846
302,0112,288,815
42,945,352

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

6,318,430
1,448,905
1,449,631
9,216,967
52,162,319

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

8,682,976
7,872,970
17,426,435(5,627)33,976,755

8,682,976
7,872,970
21,704,510(5,837)
38,254,620(281,315)(281,315)
50,53533,745,975
85,908,294

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

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013

(2) Consolidated statements of income and comprehensive income
Consolidated statements 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
Gain on investments in partnership
Commissions received
Real estate rental revenue
Gain on donation 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
Losses on funds managed in investment partnerships
Real estate rental expenses
Other non-operating expenses
Total non-operating expenses- 15 -

Previous fiscal year
(May 1, 2011
to April 30, 2012)
142,790,684
119,697,522
23,093,161

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

680,322
122,795
3,216,772
9,909
157,489
12,846
87,667302,011
721,138
492,268
175,266
2,266,312
501,077
1,077,879
504,206
2,511,316
12,839,280
10,253,881

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

59,45034,966－
58,586
131,962
28,074
123,686
75,648234,508
746,886

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

159,399
71,29919,25082,737120,232
452,918

144,227
78,720－32,74865,677321,373

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013
(Thousand yen)

Ordinary income
Extraordinary income
Gain on sales of fixed assets
Gain on sales of investments in securities
Gain on sales of shares of subsidiaries and affiliates
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 (losses)
Net income- 16 -

Previous fiscal year
(May 1, 2011
to April 30, 2012)
10,547,849

Current fiscal year
(May 1, 2012
to April 30, 2013)10,292,622

17,121
21,332
22,795－18,302－
2,826
82,378

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

147,419
192,997
52,446
243,795
11,766
199,686
848,111
9,782,115
4,652,210
228,550
4,880,761
4,901,353
1,951
4,899,402

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

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013

Consolidated statements of comprehensive income

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

Previous fiscal year
(May 1, 2011
to April 30, 2012)
4,901,353(Thousand yen)
Current fiscal year
(May 1, 2012
to April 30, 2013)
5,068,624

46,56046,5604,947,914

339,171
339,171
5,407,795

4,945,963

5,414,285

1,951(6,490)AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013

(3) Consolidated statements of changes in net assets
Previous fiscal year
(May 1, 2011
to April 30, 2012)
Shareholders’ equity
Common stock
Balance at the beginning of current year
Balance at the end of current year
Capital surplus
Balance at the beginning of current year
Balance at the end of current year
Retained earnings
Balance at the beginning of current year
Net changes during the year
Cash dividends paid
Change in scope of consolidation
Net income
Total changes during the year
Balance at the end of current year
Treasury stock
Balance at the beginning of current year
Net changes during the year
Acquisition of treasury stock
Total change during the year
Balance at the end of current period
Total shareholders’ equity
Balance at the beginning of current year
Net changes during the year
Cash dividends paid
Change in scope of consolidation
Net income
Acquisition of treasury stock
Total changes during the year
Balance at the end of current year

- 18 -(Thousand yen)

Current fiscal year
(May 1, 2012
to April 30, 2013)

8,682,976
8,682,976

8,682,976
8,682,976

7,872,970
7,872,970

7,872,970
7,872,970

13,227,209

17,426,435(717,345)
17,1684,899,402
4,199,226
17,426,435(797,039)－
5,075,114
4,278,075
21,704,510(4,918)(5,627)

(708)
(708)
(5,627)

(210)
(210)
(5,837)

29,778,237

33,976,755(717,345)
17,1684,899,402(708)
4,198,517
33,976,755(797,039)－
5,075,114(210)
4,277,865
38,254,620

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013

Previous fiscal year
(May 1, 2011
to April 30, 2012)
Accumulated other comprehensive income (losses)
Unrealized holding gains (losses) on securities
Balance at the beginning of current year
Net changes during the year
Net change in items other than those in shareholders’equityTotal changes during the year
Balance at the end of current year
Total accumulated other comprehensive income (losses)
Balance at the beginning of current year
Net changes during the year
Net change in items other than those in shareholders’equityTotal changes during the year
Balance at the end of current year
Minority interests
Balance at the beginning of current year
Net changes during the period
Net change in items other than those in shareholders’equityTotal changes during the year
Balance at the end of current year
Total net assets
Balance at the beginning of current year
Net changes during the year
Cash dividends paid
Change in scope of consolidation
Net income
Acquisition of treasury stock
Net change in items other than those in shareholders’equityTotal changes during the year
Balance at the end of current year

- 19 -(Thousand yen)

Current fiscal year
(May 1, 2012
to April 30, 2013)(327,875)(281,315)

46,560339,171

46,560(281,315)

339,171
57,855(327,875)(281,315)

46,560339,171

46,560(281,315)

339,171
57,85548,58450,535

1,951(6,490)1,951
50,535(6,490)44,04429,498,946

33,745,975(717,345)
17,1684,899,402(708)(797,039)－
5,075,114(210)

48,511

332,680

4,247,028
33,745,975

4,610,545
38,356,520

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013

(4) Consolidated statements of cash flows
Previous fiscal year
(May 1, 2011
to April 30, 2012)
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
Gain on sales of shares of subsidiaries and affiliates
Decrease in allowance for doubtful accounts
Increase (decrease) in reserve for reward obligations
Increase in allowance for retirement benefits
Increase in allowance for bonuses to employees
Increase in allowance for bonuses to directors
Decrease in reserve for losses on disaster
Interest and dividend income
Interest expenses(Gain)losses on investments in partnerships
Gain on donation of property, plant and equipment
Losses on sales of investments in securities
Losses on disposal and sales of fixed assets
Gain on transfer of business
Decrease in accounts receivable
Decrease in inventories( Increase) decrease in other assets
Increase in other accounts receivable
Increase in accounts payable(Decrease) increase in other liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities- 20 -

9,782,115
1,749,581
1,262,920
243,795
52,446(22,795)(79,104)(11,360)
174,879
1,749
3,471(11,000)(94,417)
159,399
19,250(28,074)
171,665
130,298－
70,008404,720
10,133(687,125)
1,862,420
1,007,236
16,172,215
84,430(158,749)(4,418,239)
11,679,656(Thousand yen)

Current fiscal year
(May 1, 2012
to April 30, 2013)

9,694,549
2,212,673
1,784,362
159,171
1,750－(6,964)
13,908202,089
114,549
83－(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

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013

Previous fiscal year
(May 1, 2011
to April 30, 2012)
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
Purchase of shares in affiliates
Purchases of subsidiaries’ shares resulting in obtaining
controls
Proceeds from subsidiaries’ shares resulting in losses ofcontrols
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
Proceeds from short-term debts
Repayments of short-term debts
Proceeds from long-term debts
Repayments of long-term debts
Payments for redemption of bonds
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, 2012
to April 30, 2013)(2,378,199)(3,266,990)

165,692－(477,754)
574,650(7,550)324,92765,000(559,295)
1,239,667－(4,122,116)(2,923,359)

204,700－(1,060,500)
182,509(3,600)6,316(1,228,303)
1,362(912,861)
45,175(300)(9,010,778)(578,500)
733,907(743,076)
106(956,067)
2,904(1,864,539)
36,100(14,049)(8,503,264)

3,100,000(2,777,437)
3,400,000(4,646,327)(184,000)(305,236)(708)(717,345)(2,131,055)
537,822
15,397,504
15,935,326

7,735,000(6,884,447)
6,440,000(5,258,395)－(431,027)(210)(797,039)
803,880
2,504,320
15,935,326
18,439,646

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013

(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, 2013

3. Sales, income or losses, assets, liabilities and other items for each reportable segment
I. Previous fiscal year (May 1, 2011 to April 30, 2012)(Thousand yen)
Reportable segments
Adjustments(Note) 1

Consolidated(Note) 2

142,790,684－

142,790,684

18,747

18,747(18,747)－

15,395,215

279,855

142,809,432(18,747)

142,790,684

12,286,672

125,900(143,752)

12,268,820(1,720,971)

10,547,849

77,141,833

7,204,152

2,445,785

86,791,771(883,476)

85,908,294

1,276,009

220,40228,747

1,525,159

28,135

1,553,295

1,257,880

5,040

－

1,262,920－

1,262,920

177,469

54,688

11,637

243,795－

243,795

3,645,188456,862

138,8144,240,866

2,395

4,243,261

Dispensing
pharmacy

Drug andcosmetic
store

Sales to third parties

127,134,361

15,395,215

261,108

Intersegment sales－－

127,134,361

Other

Total

Sales

Total sales
Segment(losses)incomeSegment assets
Other
Depreciation
and amortization
Amortization of
goodwill
Impairment losses
Increase of tangible
and intangible assets
Notes:

1. Segment income (losses) in “Adjustments” totaling (¥1,720,971 thousand) includes ¥1,557,834 thousand in overall
group expenses, ¥87,312 thousand in losses that may not be allocated to the reporting segments, and ¥75,824
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 of (¥883,476 thousand) under “Adjustments” 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, 2013

II. Current 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－－

137,291,626

Other

Total

Sales

Total sales
Segment(losses)incomeSegment assets
Other
Depreciation
and amortization
Amortization of
goodwill
Impairment losses
Increase of tangible
and intangible assets
Notes:

1. Segment income (losses) 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.

- 24 -

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2013

b. Related information
I. Previous fiscal year (May 1, 2011 to April 30, 2012)
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, 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.
c. Information regarding impairment losses of fixed assets for each reported segment
Previous fiscal year (May 1, 2011 to April 30, 2012)
This disclosure has been omitted because the same information is disclosed under Segment Information.
Current fiscal year (May 1, 2012 to April 30, 2013)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, 2013

d. Information about goodwill amortization amount and year-end balance for each reportable segment
Previous fiscal year (May 1, 2011 to April 30, 2012)(Thousand yen)
Dispensing
pharmacybusiness

Drug andcosmetic store
business

Otherbusinesses

Corporate /Eliminations

Total

Amortization of current fiscal year

1,257,880

5,040

－

－

1,262,920

Balance at the end of current fiscal year

17,654,743

10,080－－17,664,823

Current 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

e. Information about gains on negative goodwill for each reported segment
Previous fiscal year (May 1, 2011 to April 30, 2012)
There are no applicable matters to be reported.
Current fiscal year (May 1, 2012 to April 30, 2013)
There are no applicable matters to be reported.

- 26 -