Start date of measures for electronic provision: July 2, 2024

Informational Materials for the 55th Ordinary General Meeting of
Shareholders(The matters subject to measures for electronic provision that have not been stated in the paperbased documents for shareholders who have requested the delivery of paper-based documents
pursuant to laws and regulations or the Articles of Incorporation)● Business Report● Consolidated Financial Statements
Main business activities
Consolidated statements of changes in
Main offices
shareholders’ equity
Status of employees
Notes to consolidated financial statements
Status of main lenders● Financial Statements
Other material matters regarding the current
Balance sheet
status of the Company GroupStatement of income
Status of accounting auditor
Non-consolidated statements of changes in
System for ensuring the appropriateness ofshareholders’ equity
business and the status of operation of said
Notes to non-consolidated financial statements
system● Audit Report
Basic policy regarding control of the Company
Accounting audit report on the consolidated
Policy regarding decision of dividends offinancial statements
surplus, etc.
Accounting audit report on the nonconsolidated financial statements
Audit Report by Board of Corporate Auditors

55th business term (From May 1, 2023 to April 30, 2024)
AIN HOLDINGS INC.
The paper-based documents being sent to shareholders who have requested the delivery of paper-based documents
do not include the aforementioned matters in accordance with the provisions of laws and regulations and Article
16 of the Company’s Articles of Incorporation.
It should be noted that for this General Meeting of Shareholders, all shareholders will be sent a paper-based
document that states everything other than the aforementioned matters that have been excluded from the matterssubject to measures for electronic provision, regardless of whether or not a request for the delivery of paper-based
documents has been made.

-1-

Main business activities (As of April 30, 2024)(i) Dispensing pharmacy business segment
Insurance pharmacy business that dispenses prescription drugs to patients with prescriptions issued by a
medical facility(ii) Cosmetic and drug store business segment
Cosmetics and drug store business that sells drugs, cosmetics, miscellaneous household items, etc. togeneral consumers
Main offices (As of April 30, 2024)
Company’s headquarters

5-2-4-30, Higashisapporo, Shiroishi-ku, Sapporo

Company’s Tokyo Office2-1-5, Yoyogi, Shibuya-ku, Tokyo

Note that the status of distribution of Group stores (areas and number of stores) is as shown below.
By prefecture

Dispensing
Pharmacy BusinessHokkaido

Cosmetic and DrugStore Business114

By prefecture

18

Mie

Dispensing
Pharmacy Business

Cosmetic and DrugStore Business

6–

Aomori

12

–

Shiga

2

–

Iwate

17

–

Kyoto

34

1

Miyagi

48

1

Osaka

69

4

Akita

11

–

Hyogo

33

3

Yamagata

39

–

Nara

5

–

Fukushima

36–

Wakayama

3–

Ibaraki69–

Tottori

12–

Tochigi

11

1

Shimane

18

–

Gunma

17

–

Okayama19

1

Saitama81

5

Hiroshima

46

–

Chiba

34

3

Yamaguchi

4

–

Tokyo

101

24

Tokushima

7–

Kanagawa

46

11

Kagawa31–

Niigata

49

–

Ehime

9

–

Toyama

21

–

Kochi

10

–

Ishikawa

5–

Fukuoka

18

4

Fukui

4

–

Nagasaki

6–

Yamanashi

3–

Kumamoto

4

1

Nagano

55

–

Oita

19

–

Gifu

7

–

Miyazaki3–

Shizuoka

46–

Kagoshima

2

2

Aichi

28

2

Okinawa
Total

17

–

1,231

81

Status of employees (As of April 30, 2024)(i) Status of employees of Company Group
Segment by business type

Number of employees

Dispensing Pharmacy Business
Cosmetic and Drug Store BusinessChange from end of previous fiscal year

10,440 [1,167]784 [-61]

582 [1.074]

27 [70]Companywide (Shared)452 [81]12 [19]

Total

11,474 [2,322]

823 [28]-2-

Note: The number of employees denotes regular employees. Part-time and temporary employees are indicated in square brackets as
the average number of said personnel for the full year and are not included in the number of employees.

(ii) Status of Company employees
Number of employees

Change from end of previous
fiscal year

162 [48]

1 [6]Average years of continuous
service

Average age
43.2

11.3

Note: The number of employees denotes regular employees. Part-time and temporary employees are indicated in square brackets as
the average number of said personnel for the full year and are not included in the number of employees.

Status of main lenders (As of April 30, 2024)
There are no main lenders.
Other material matters regarding the current status of the Company GroupNo applicable matters are present.

-3-

Status of accounting auditor(i) Name

Ernst & Young ShinNihon LLC(ii) Amount of remuneration
Amount paid
Amount of remuneration for the accounting auditor for the fiscal year under review¥47 million

Total amount of cash and other property benefits that should be paid by the Company andits subsidiaries to the accounting auditor¥56 million

Notes:

1. In audit agreements between the Company and the accounting auditor, amounts of audit remuneration for audits based on
the Companies Act and audits based on the Financial Instruments and Exchange Act are not clearly categorized, nor canthey be essentially categorized. As such, the total amount of said remuneration is stated in the amount of remuneration for
the accounting auditor for the fiscal year under review.
2. After performing necessary verification to determine whether the content of the audit plans of the accounting auditor, thestatus of the execution of accounting audit duties, the basis of calculation for remuneration estimates, etc. are appropriate,
the Board of Corporate Auditors granted consent under Article 399, paragraph (1) of the Companies Act with respect tothe remuneration amount for the accounting auditor.

(iii) Decision policy for dismissal or non-reappointment of accounting auditor
In cases where the accounting auditor is found to apply to matters stipulated under each item of Article 340,
paragraph (1) of the Companies Act, the Board of Corporate Auditors will dismiss the accounting auditor
based on the consent of all Corporate Auditors.
Also, in addition to the above cases, in cases where the proper performance of audits is found to be difficult
due to the occurrence of the likes of events that compromise the suitability and/or independence of theaccounting auditor, the Board of Corporate Auditors will decide on the content of an agenda to submit to theGeneral Meeting of Shareholders regarding the dismissal or non-reappointment of the accounting auditor.

System for ensuring the appropriateness of business and the status of operation of said system
An overview of the nature of decisions and status of operation with respect to the system for ensuring that theperformance of duties by Directors complies with relevant laws, regulations, and the Articles of Incorporation, as
well as other systems for ensuring the appropriateness of the business of the Company is as follows.
(i) System for ensuring that the performance of duties by Directors and employees complies with relevant laws,
regulations, and the Articles of Incorporation
 The Board of Directors, pursuant to the provisions of the relevant laws, regulations, the Articles ofIncorporation, and the Rules of the Board of Directors, makes decisions on important matters relating tobusiness execution and supervises the execution of duties by Directors.
 In order to maintain and enhance the Directors’ supervisory function over the execution of duties, theGroup separates the execution and supervisory functions by adopting the executive officer system andcontinuously appoints outside Directors, considering their independence.

-4- The officers and the employees of the Group (hereinafter referred to as the “Officers and Employees”), in
accordance with the Group’s Code of Conduct, strive for corporate activities with common sense andethics, always recognizing that they are engaged in the business of people’s health as well as complying
with the relevant laws, regulations, the Articles of Incorporation, etc.
 For the purpose of executing the duties of the Group in accordance with the relevant laws, regulations, theArticles of Incorporation, and the Group’s internal rules and enhancing compliance therewith, theCompany has created the Compliance Committee to manage compliance throughout the Group.
 The Group has developed the Compliance Hotline, which enables direct notification to outsidecontractors, in order to detect and correct violations of the relevant laws and regulations and othercompliance-related problems as early as possible.
 Based on the “Anti-insider Trading Rules,” the Group conducts thorough management on undisclosed
material facts, makes appropriate efforts to disclose information in a timely and appropriate manner, anddevelops a system to prevent insider trading.
 Corporate Auditors, as an independent organization, audit the execution of duties by Directors, including
the construction and operational status of the internal control system.
 The Internal Audit Office, from a viewpoint independent from the business execution organizations,conducts audits on the status of compliance by the Officers and Employees of the Group with the relevantlaws, regulations, the Article of Incorporation, etc.
 The Group has declared in the Group’s Code of Conduct that it has no relationship with any anti-social
forces and developed the “Rules for Dealing with Anti-social Forces,” and strives as a whole organization
to block involvement with anti-social forces in cooperation with the police, corporate lawyers, etc.

(ii) Systems related to the retention and management of information relating to the performance of duties byDirectors
 The Company, in accordance with the “Document Handling Rules,” has systems in place to retain andmanage information relating to the performance of duties by Directors appropriately by recording suchinformation in writing or in electromagnetic media in a manner that is accessible by Directors andCorporate Auditors as required.

(iii) Rules and other systems related to management of the risk of loss The Company has formulated the “Risk Management Rules” and the “Risk Management Guidelines,”
both of which stipulate risk management for the entire Group, and designates the departments in charge
for each risk category and manages the risks for the entire Group exhaustively and comprehensively.
 The Company has created the Risk Management Office as a section that supervises the risk management
status of all Group companies, and manages issues and countermeasures relating to the promotion ofGroup-wide risk management.

-5- The Internal Audit Office conducts field audits to inspect compliance by and effectiveness of the risk
management system of the Group.
 The Company has formulated the Group’s “Business Continuity Plan (BCP)” in order to ensure thecontinuity of the businesses of the Group in the event of a crisis, and ensures that all Officers andEmployees of the Group are fully aware of it.

(iv) System for ensuring efficient execution of duties by Directors
 Each Director of the Group executes one’s allocated area of duties at one’s own responsibility pursuant to
the “Rules for Segregation of Duties.” The Internal Audit Office and the Board of Corporate Auditors
check whether Directors follow the above appropriately.
 The Company develops the management plans of the Group, and, for the purpose of giving shape to suchplans, sets management targets and allocates budget for the entire Group for each fiscal year.

(v) Systems to ensure the appropriateness of business in the Group and systems for reporting the Company onmatters concerning the execution of the duties by subsidiary Directors
 In order to ensure the appropriateness of business activities as a corporate group, the Company applies the“Rules for Management of Affiliated Companies” to each of its subsidiaries, obliging them to give
periodic reports on their important management matters requiring careful decision-making (including
facts of occurrence).
 The Company holds regular group management meetings attended by Directors of the Company and its
subsidiaries and obliges subsidiaries to report any significant events at such meetings.

(vi) Matters concerning employees if Corporate Auditors have requested that those employees be appointed toassist with their duties
 In the event that Corporate Auditors request to appoint employees who assist them in their duties, theCompany appoints appropriate employees as assistants to them after consultation with those Corporate
Auditors.

(vii) Matters concerning the independence of employees described in the preceding clause from Directors andmatters concerning the ensuring of the effectiveness of instructions given to employees who should assist
with the duties of Corporate Auditors
 In order to ensure the independence of employees described in the preceding clause from Directors, theCompany informs Corporate Auditors of personnel changes or evaluations of such employees in advanceand requests their opinions.
 The Company has specified in the “Corporate Audit Standards” the authority to give directions andinstructions to employees who should assist Corporate Auditors.
-6-

(viii) The following systems and other systems relating to reporting to the Company’s Corporate Auditors
 System to require the Company’s Directors and employees to give reports to Corporate Auditors
In the event that Directors detect any facts that are likely to cause significant damage to the Company inthe course of business execution, they report the matters relating to such facts to the Corporate Auditors.
The Internal Audit Office reports the execution of its business to the Corporate Auditors on a regularbasis.
The Corporate Auditors request reports from Directors or employees if deemed necessary to fulfill theirduties.
 System to report to the Corporate Auditors from the Directors, Corporate Auditors and employees ofsubsidiaries or from persons who received reports from such Directors, Corporate Auditors andemployees
The Officers and Employees of the Group give appropriate reports promptly when they are requested by
the Corporate Auditors of the Company to report on the matters concerning the execution of their duties.
In the event that Officers and Employees of the Group detect any facts that are likely to cause significant
damage to the Company in the course of business execution, they report the matters relating to such facts
to the Corporate Auditors.
The Internal Audit Office reports the execution of its business to the Corporate Auditors on a regularbasis.
The Risk Management Office, which is in charge of the whistle-blowing system, reports the status ofwhistle-blowing from the Officers and Employees of the Group to the Corporate Auditors of theCompany on a regular basis.

(ix) System to ensure that persons who have conducted the whistle-blowing set forth in the preceding clause will
not be treated unfavorably on the basis of such whistle-blowing The Company prohibits treating Officers and Employees of the Group who conducted whistle-blowing to
the Corporate Auditors of the Group unfavorably on the grounds of such whistle-blowing and ensures that
all Officers and Employees of the Group are fully aware of it.
(x) Matters concerning the policy for expenses and debts arising from the execution of duties by the Corporate
Auditors
 In the event that Corporate Auditors request to make an advance payment of expenses or settlement ofdebts that arise in connection with the execution of their duties, the Company promptly addresses such
expenses and debts in accordance with the “Corporate Audit Standards.”-7-

In the event that the Board of Corporate Auditors requests outside experts, such as attorneys and certified
public accountants, to fulfill the duties of Corporate Auditors, the Company bears the cost thereof.
The Board of Corporate Auditors budgets in advance for expenses deemed necessary to fulfill their duties.

(xi) Other systems to ensure effective audits by Corporate Auditors
 In the event that Corporate Auditors determine it necessary to cooperate with outside experts, such as
attorneys and certified public accountants, in order to fulfill their duties, the Company requests suchcooperation.
(xii) Overview of status of operation of systems for ensuring the appropriateness of the businessA. Initiatives regarding compliance
The Company continuously conducts initiatives to comply with the relevant laws, regulations, and the
Articles of Incorporation by administering training on compliance to employees through internal training
and meeting bodies.
Additionally, through the ongoing operation of its “Compliance Hotline,” which enables direct
notification to outside contractors, the Company regularly makes reports to Corporate Auditors.
B. Initiatives regarding risk management
Based on its “Risk Management Rules” and the “Risk Management Guidelines,” the Company manages
the risks for the entire Group exhaustively and comprehensively, and inspects the status of operation of
those rules and guidelines through field audits by the Internal Audit Office.
C. Execution of duties of Directors
In the fiscal year under review, 12 meetings of the Board of Directors were held to provide supervision inorder to ensure that the execution of the duties of Directors and employees complied with relevant laws,
regulations, and the Articles of Incorporation.
Additionally, the Board of Directors maintains its supervisory functions by continuously electing outside
Directors.
D. Execution of duties of Corporate Auditors
In the fiscal year under review, 12 meetings of the Board of Corporate Auditors were held to audit theexecution of the duties of Directors, including the construction and operational status of the internal
control system.
Additionally, the Board of Corporate Auditors maintains the effectiveness of audits by verifying the statusof execution of business by the Internal Audit Office and cooperating with certified public accountants
and other outside experts.

-8-Basic policy regarding control of the Company
The Company recognizes that it has to address purchases (or proposed acquisitions) intended to acquire large
quantities of shares by carefully examining and determining the impact of said purchase acts (or proposed
acquisitions) on the corporate value of the Company and common interests of shareholders based on the businessactivities, plans and past investment activity, etc. of the relevant purchaser.
This does not mean that concrete threats pertaining to the purchase of large quantities of the Company’s shares
have arisen at this time. Moreover, the Company does not predetermine concrete initiatives for cases where such
purchasers appear (so-called “countermeasures against acquisitions”).

Policy regarding decision of dividends of surplus, etc.
The Company considers the return of profits to shareholders as an important management issue. Its basic policy
is to allocate profits proportionately to performance, and to maintain payments at stable levels. The Company’s
basic policy is to pay dividends of surplus once each year at the end of the fiscal year. The organs deciding
dividends of surplus are the General Meeting of Shareholders for year-end dividends and the Board of Directors
for interim dividends.
Internal reserves are held to strengthen the corporate structure and in preparation for new store openings andfuture development of the business. The Company will make effective use of these funds to generate profits to be
returned to shareholders in the future. Additionally, the Company will adequately conduct acquisitions oftreasury shares while taking into consideration its financial position, stock price trends and other factors in orderto improve its capital efficiency and execute flexible capital policies that accommodate changes in its operating
environment.

-9-Consolidated statements of changes in shareholders’ equity (from May 1, 2023 to April 30, 2024)(Millions of yen)
Shareholders’ equity
Share capital
Beginning balance on May 1, 2023

21,894

Capital surplus

Retained earnings

20,50485,963

Treasury shares(2,000)Total shareholders’equity126,362

Changes during the consolidated period
Dividends of surplus(2,107)(2,107)

Profit attributable to owners of parent

11,401

11,401

Purchase of treasury shares
Disposal of treasury shares
Net changes in items other thanshareholders’ equity during theconsolidated period
Total changes during the consolidated
periodEnding balance on April 30, 2024

(372)

(2,436)(2,436)

1,999

1,627

–

(372)

9,293

(436)

8,484

21,894

20,131

95,257(2,436)

134,847

Total accumulated other comprehensive income

Beginning balance on May 1, 2023

Valuation difference
on available-for-salesecurities

Remeasurements ofdefined benefit plans

Total accumulated
othercomprehensive
incomeNon-controllinginterests

(7)

95

87

96

Total net assets

126,546

Changes during the consolidated period
Dividends of surplus(2,107)

Profit attributable to owners of parent

11,401

Purchase of treasury shares(2,436)

Disposal of treasury shares

1,627

Net changes in items other thanshareholders’ equity during theconsolidated period
Total changes during the consolidated
periodEnding balance on April 30, 2024

242

129

372

7

380

242

129

372

7

8,865

234

225

459

104

135,411- 10 -

Notes to consolidated financial statements
1. Significant Matters as Basis for Preparing Consolidated Financial Statements(1) Scope of consolidation(i)

Status of consolidated subsidiaries･ Number of consolidated
subsidiaries:

28･ Names of consolidated
subsidiaries:

AIN PHARMACIEZ INC.
DAICHIKU Co., Ltd.
Asahi Pharmacy Co., Ltd.
Kom Medical Co., Ltd.
AIN SHINSHU Co., Ltd.
Pharmacy Co., Ltd.
WHOLESALE STARS Co., Ltd.
MEDIWEL Corp.
AYURA LABORATORIES Inc.
19 other dispensing pharmacy business companies(ii) Status of unconsolidated subsidiaries･ Names of major unconsolidated There are no major unconsolidated subsidiaries
subsidiaries･ Reason for exclusion from scope Unconsolidated subsidiaries have been excluded from the scope of
consolidation because they are of a small scale, have a minor impact onof consolidation
total assets, net sales, net profit or loss and retained earnings (the amountcorresponding to the ownership interest), and are not of overallsignificance.
(2) Application of equity method(i)

Status of unconsolidated subsidiaries and associates accounted for using equity method
No applicable matters are present.

(ii) Status of unconsolidated subsidiaries and associates that are not accounted for using equity method･ Name of major company, etc.

There are no major unconsolidated subsidiaries and associates.

･ Reason for the non-applicationof the equity method

Each company has been excluded from the application of the equity
method because they are of a small scale, have a minor impact on
consolidated net profit or loss and retained earnings (the amountcorresponding to the ownership interest), and are not of overallsignificance.

(iii) Special matters concerning equity method application procedures
No applicable matters are present.
(3) Matters relating to changes in scope of consolidation and scope of equity method(i)

Changes in scope of consolidation
Eight dispensing pharmacy business companies that became consolidated subsidiaries through purchase ofshares during the current consolidated fiscal year have been added to the scope of consolidation from theconsolidated fiscal year under review.
In addition, seven dispensing pharmacy business companies have been extinguished by mergers between- 11 -

subsidiaries, and have been excluded from the scope of consolidation.
(ii) Change in scope of equity method
No applicable matters are present.
(4) Fiscal year of consolidated subsidiaries
Of the consolidated subsidiaries, the balance sheet date of AIN PHARMACIEZ INC., MEDIWEL Corp., andAYURA LABORATORIES Inc. is April 30. In addition, one dispensing pharmacy business company has abalance sheet date of the final day of February, one has a balance sheet date of June 30, and the balance sheet
date of the other consolidated subsidiaries is March 31.
In the preparation of the consolidated financial statements, non-consolidated financial statements that are asof the balance sheet date or that have been provisionally prepared in accordance with regular balance sheet
have been used; adjustments have been made as necessary for consolidation in relation to any significant
transactions that occurred in the period until the consolidated balance sheet date.
(5) Accounting policies(i)Valuation basis and methods for significant assets
A. Other securities･ Securities other than shares, etc.,that do not have a market price･ Shares, etc., that do not have amarket priceStated at fair value (valuation differences are booked directly in a
separate component of net assets, and cost of securities sold isdetermined by the moving average method)
Stated at cost determined by the moving average method

B. Valuation basis and methods for inventories･ Merchandise･ Dispensing medicine･ Supplies

Mainly stated at cost determined by the retail method (balance sheet
values are calculated using the book value write-down method basedon decreased profitability)
Mainly stated at cost determined by the weighted-average method(balance sheet values are calculated using the book value write-down
method based on decreased profitability)
Last purchase cost method- 12 -

(ii) Accounting methods for depreciation of significant depreciable assets
A. Property, plant and equipment The declining balance method (however, for buildings [excluding
facilities attached to buildings] acquired on or after April 1, 1998, as(excluding leased assets)
well as facilities attached to buildings and structures that were acquiredon or after April 1, 2016, the straight-line method is applied)
Straight-line method (software for internal use is amortized using the
B. Intangible assets
straight-line method over its useful life as internally determined (five(excluding leased assets)
years))The straight-line method is applied assuming the lease period as the
C. Leased assets
useful life without residual value.
D. Long-term prepaid expenses The straight-line method(iii) Accounting policy for significant provisions
doubtfulTo prepare for credit losses on receivables, an estimated uncollectableamount is provided at the amount estimated by either using thehistorical rate of credit loss for general receivables, or based on
individual consideration of collectability for specific receivables suchas highly doubtful receivables.
For appropriation for the payment of bonuses to employees, of theB. Provision for bonuses
estimated amount of bonuses to be paid, the amount estimated to cover
the consolidated fiscal year under review is provided.
C. Provision for bonuses forIn preparation for expenditure on bonuses for directors (and otherdirectors (and other officers) officers), the amount is recorded based on the estimated amount ofbonuses to be paid for the consolidated fiscal year under review.
A. Allowanceaccounts

for(iv) Accounting policy for revenue and expenses
The Company and consolidated subsidiaries recognize revenue at the time control of the promised goods
or services is transferred to the customer, and at the amount that is expected to be received in exchange forsuch goods or services.
A. Dispensing Pharmacy Business
The Dispensing Pharmacy Business primarily consists of dispensing pharmacies, and revenue isrecognized at the time a drug is delivered to the customer.
B. Cosmetic and Drug Store Business
The Cosmetic and Drug Store Business primarily consists of cosmetics and drug stores, and revenue isrecognized at the time a product is delivered to the customer.
However, in the provision of services under our customer loyalty program in which points are granted
at the time of purchase, as our performance obligation will not be fulfilled for points granted by ourcompany that do not end up being used by the customer, contract liabilities are recorded at the amountallocated to the transaction price based on the stand-alone selling price, which has been set inconsideration of future expiration prospects and usage rates, etc., performance is considered satisfied
when the points are used or expired, and revenue is then recognized accordingly.

- 13 -

(v) Other significant matters for preparing consolidated financial statements
A. Accounting policy for retirement benefit liability
To prepare for payment of retirement benefits for employees, projected retirement benefit obligations
and plan assets at the end of the fiscal year are recorded based on deemed either accrued or realized
amount as of the end of the fiscal year.
It should be noted that in the calculation of retirement benefit obligations, expected retirement benefits
are attributed to the period up to the consolidated fiscal year under review on a benefit formula basis.
Past service cost is amortized using the straight-line method over a certain number of years (six years)
within the average remaining service years of employees when incurred.
Actuarial gains and losses are amortized using the declining balance method over a certain number ofyears (six years) within the average remaining service years of employees when incurred in each fiscal
year, from the fiscal year following the accrual of each gain or loss.
Unrecognized actuarial gains and losses and unrecognized past service costs are recorded, after adjustingfor tax effects, in “Remeasurements of defined benefit plans” under accumulated other comprehensive
income in net assets.
B. Accounting method and period for amortization of goodwill
The amortization of goodwill is performed in equal installments over a period of 5 to 20 years, upon
having estimated the period during which the investment effect will be realized.

2. Notes on changes in accounting policies
No applicable matters are present.
3. Notes on changes in presentation
No applicable matters are present.

4. Notes on accounting estimates(1) Impairment of goodwill (excluding store non-current assets)(i)

Amount recorded in the consolidated financial statements for the consolidated fiscal year under review
Item

AmountGoodwill (excluding store non-current assets)¥33,136 million

Impairment losses (relating to the goodwill above)¥ - million(ii) Information on the content of accounting estimates relating to identified items
A. Calculation method
The Group recognizes the excess earning power expected at the time of acquisition as goodwill for therespective target company, and groups assets by target company.

- 14 -

In cases where there are signs of impairment for each asset group, and the total of the non-discounted
future cash flows corresponding to the remaining amortization period of the goodwill to be obtained
from that asset group is less than the carrying amount, an impairment loss is recognized, the value in
use is calculated using the discounted present value of the future cash flows, the book value is reduced
to said value in use, and is recorded as an impairment loss.
B. Main assumptions
Estimations of future cash flows are made based on budgets that have been approved by the Board of
Directors and planned figures that have been prepared based on operating profit forecasts at the time ofacquisition, with the main assumptions for the Dispensing Pharmacy Business being the number ofprescriptions and prescription prices.
C. Impact on the consolidated financial statements for the next consolidated fiscal year
The main assumptions related to estimating future cash flows are subject to a high level of uncertainty,
and actual performance may differ from the forecast values. If a deviation from a forecast value occurs,
an impairment loss may be incurred in the following consolidated fiscal year.
(2) Impairment of store non-current assets(i)Amount recorded in the consolidated financial statements for the consolidated fiscal year under review
Item

AmountProperty, plant and equipment¥36,405 million

Intangible assets¥14,023 million

Investments and other assets (long-term prepaid expenses)¥5,113 million

Impairment losses (relating to store non-current assets)¥1,737 million(ii) Information on the content of accounting estimates relating to identified items
A. Calculation method
The Group has made stores, which are business assets, its basic unit as the smallest unit that generates
cash flow, and groups assets for lease and idle assets by property unit. Indications of impairment include
stores for which profits from operating activities are consistently negative, stores at which changes havebeen made in the scope or method of use that significantly reduces the recoverable amount, and idle
asset groups for which the fair value has declined significantly.
If there are signs of impairment for an asset or asset group, and the total of the non-discounted future
cash flows to be derived from the asset or asset group is less than its carrying amount, the carrying
amount is reduced to its recoverable amount and this reduction is recorded as an impairment loss.
B. Main assumptions
Estimations of future cash flows are made based on budgets that have been approved by the Board of
Directors, with the main assumptions for the Dispensing Pharmacy Business being the number ofprescriptions and prescription prices, and the main assumptions for the Cosmetic and Drug StoreBusiness being the number of customers and average customer spend.

- 15 -

C. Impact on the consolidated financial statements for the next consolidated fiscal year
The main assumptions related to estimating future cash flows are subject to a high level of uncertainty,
and actual performance may differ from the forecast values. If a deviation from a forecast value occurs,
an impairment loss may be incurred in the following consolidated fiscal year.

5. Notes on changes to accounting estimates(Changes to estimates for asset retirement obligations)
In the fiscal year under review, the estimated amounts of a part of the asset retirement obligations recorded as
restoration obligations associated with building rental contracts have been changed in conjunction with theobtaining of new information concerning the restoration costs that will be required upon the vacation of therespective premises.
Due to such estimate changes, the balance of asset retirement obligations increased by ¥501 million.

6. Notes on consolidated balance sheet
Accumulated depreciation of property, plant and equipment¥29,878 million

7. Notes to consolidated statements of changes in shareholders’ equity(1) Total number of issued sharesClass of shares
Common shares

Number of shares at
beginning of theconsolidated fiscal year
under review

Increase

Decrease

Number of shares at theend of the consolidated
fiscal year under review

35,428 thousand shares- thousand shares- thousand shares

35,428 thousand shares

Number of shares at
beginning of theconsolidated fiscal year
under review

Increase

Decrease

Number of shares at theend of the consolidated
fiscal year under review

433 thousand
shares

298 thousand
shares(2) Number of treasury sharesClass of shares

Common shares

298 thousand shares

433 thousand shares(Note) The increase of 433,000 shares of common shares in treasury shares was due to the acquisition of
100,000 shares of treasury shares based on a resolution of the Board of Directors, the acquisition of
333,000 shares of treasury shares through the introduction of a stock benefit trust (employee stock
ownership plan disposal type), and the purchase of 0 thousand shares of less than one minimum trading
unit. The decrease of 298,000 shares of common shares in treasury shares was due to the disposal of
2,000 shares by the grant of restricted stock compensation and the disposal of 295,000 shares by the
introduction of a stock benefit trust (employee stock ownership plan disposal type). The number oftreasury shares as of the end of the consolidated fiscal year under review includes the Company’s shares(333,000 shares) held by Custody Bank of Japan, Ltd. (Trust Account E) related to the stock benefit
trust (employee stock ownership plan disposal type).

- 16 -

(3) Dividends of surplus(i)

Dividends paid, etc.
Dividends resolved at the 54th Ordinary General Meeting of Shareholders held on July 28, 2023
･ Total dividends¥2,107 million･ Dividends per share¥60･ Record date

April 30, 2023

･ Effective dateJuly 31, 2023(ii) Dividends whose effective date falls in the fiscal year following the fiscal year of the record date
The following will be submitted to the 55th Ordinary General Meeting of Shareholders that is to be heldon July 30, 2024.
･ Total dividends¥2,826 million･ Dividends per share¥80･ Record date

April 30, 2024

･ Effective dateJuly 31, 2024

(Note) The total amount of dividends based on the resolution of the 55th Ordinary General Meeting of
Shareholders held on July 30, 2024 includes a dividend of ¥26 million to Custody Bank of Japan, Ltd. (Trust
Account E).

8. Notes on financial instruments(1) Status of financial instruments(i)

Policy on financial instruments
The group is promoting business expansion through the opening of dispensing pharmacies and cosmetics
and drug stores, as well as through M&A.
The funds required for opening new stores are primarily raised from operating cash flow, however, in order
to secure extraordinary funds for M&A funds and other such purposes, we raise funds through bankborrowings and, where necessary, public offerings of new shares, and manage these funds with highly
liquid financial assets.

(ii) Details of financial instruments and risks associated with such financial instruments
Almost all of the accounts receivable, which are trade receivables, are receivables from the National Health
Insurance Organization and the Health Insurance Claims Review & Reimbursement Services in the formof dispensing fees, and in addition, almost all of the accounts receivable are collected within a short periodof time, so there are no particular risks, etc.
Almost all of the investment securities are shares in companies with which the company has business
relationships, and are exposed to the risk of fluctuations in market prices.
Leasehold and guarantee deposits are mainly segregated deposits entrusted to lessors of dispensing
pharmacies and cosmetics & drug stores, and are exposed to the credit risk of the respective lessor.
Most accounts payable, which are trade payables, have a payment due date of within three months.

- 17 -

Lease liabilities related to finance lease transactions, which are included in other borrowings and liabilities,
are mainly intended to raise funds for working capital and capital expenditure.
(iii) Risk management system for financial instruments
A. Management of credit risk (risk relating to contractual defaults, etc., by trading partners)
The main trade receivables of the company are held against the National Health Insurance Organizationand the Health Insurance Claims Review & Reimbursement Services in the form of dispensing fees, andin addition, almost all of the accounts receivable are collected within a short period of time, so no
particular management is performed for such risk.
When lending or holding bonds with the purpose of holding to maturity, the investment recipient andinvestment amount, etc., are carefully decided after internal review based on the Loan Investment
Standards and Securities Investment Standards; in addition, after the start of investment, the investment
target’s situation is regularly monitored in order to identify and mitigate any concerns about recovery at
an early stage.
For leasehold and guarantee deposits, credit management is performed through credit checks, etc., at thetime of contracting and at regular intervals thereafter, and the risk of the non-performance of contracts,
etc., is managed accordingly.
B. Management of market risk (risk of fluctuations in exchange rates and interest rates, etc.)
The Group mainly takes out long-term borrowings in order to reduce the risk of fluctuations in interest
payments on borrowings.
In regard to investment securities, for unlisted issuing companies, their financial status, etc., is regularly
assessed and for listed companies, our holdings are continuously reviewed taking into account market
conditions and relationships with trading partner companies.
C. Management of liquidity risk related to fund raising (risk of not being able to make payments on payment
due dates)
The Group manages liquidity risk by creating a cash flow plan based on the annual capital expenditurebudget and updating the actual performance and plans on a monthly basis.
In addition, the Group aims to maintain a certain level of liquidity in order to be able to flexibly respondto extraordinary capital needs arising from M&A, etc.
(2) Fair values of financial instruments
Carrying amounts, fair values and the differences between them in the consolidated balance sheet on April 30,
2024 were as follows. It should be noted that shares, etc., that do not have a market price are not included in
the table below. In addition, notes have been omitted for cash, and notes have been omitted for deposits,
accounts receivable - trade, accounts receivable, accounts payable - trade, and deposits as they are settled
within short periods and their fair values are approximate to their book values.

- 18 -

Carrying amount(Million yen)
(1) Investment securities

Fair value(Million yen)956

Difference(Million yen)957

025,132

23,384(1,747)

Total assets

26,08924,342(1,746)

Short-term borrowings (including current portion(1)of long-term borrowings)

3,467

3,454

(12)

(2) Long-term borrowings

3,227

3,213

(13)

Total liabilities

6,694

6,667

(26)

(2) Leasehold and guarantee deposits

25,186

Allowance for doubtful accounts(*)(54)(*) Excludes the allowance for doubtful accounts that is separately recorded in leasehold and guarantee deposits(Note 1) Shares, etc., that do not have a market price
Carrying amount(Million yen)

Category
Unlisted shares

2,013

These are not included in “Assets (1) Investment securities” above.
In addition, investments in partnerships and other equivalent business entities in which the amount equivalent to the equity
interest is recorded at net value are not included in shares, etc., that do not have a market price. The carrying amounts ofsuch financial instruments recorded on the consolidated balance sheet are as follows.
Carrying amount(Million yen)

Category
Investments in limited
liability investment
partnerships

374(Note 2) Expected redemption amounts of monetary claims and securities with maturity after the consolidated balance
sheet dateWithin 1 year
(Million yen)

After 1 year
through 5 years(Million yen)

After 5 years
through 10 years(Million yen)

After 10 years(Million yen)

–

–

–

–

4,428

4,481

6,732

9,543

(1) Investment securities(2) Leasehold and guarantee deposits(Note 3) Repayment schedule of borrowings after the consolidated balance sheet dateWithin 1 year
(Million yen)

After 1 year
through 5 years(Million yen)

After 5 years
through 10 years(Million yen)

After 10 years(Million yen)

3,467

–

–

–

–

3,167

60

–

Short-term borrowings (including(1) current portion of long-termborrowings)(2) Long-term borrowings(3) Breakdown, etc., of financial instruments by fair value level
The fair values of financial instruments are classified into the following three levels in accordance withobservability and the significance of the inputs used to determine the fair values.
Level 1 fair value:

Fair value calculated based on quoted (unadjusted) prices in active markets for the sameassets or liabilities- 19 -

Level 2 fair value:

Fair value calculated using directly or indirectly observable inputs other than Level 1
inputsLevel 3 fair value:

Fair value calculated using significant unobservable inputs

If multiple inputs that have a significant impact on the calculation of fair value are used, the fair value isclassed as the level to which each of those inputs belongs that has the lowest priority level in the calculationof fair value.
(i)Financial assets and financial liabilities recorded on the consolidated balance sheet at carrying amount
Category

Fair value (Million yen)
Level 1

Level 2

Level 3

Total

Investment securities
Shares

957

–

–

957

Total assets

957

–

–

957

(ii) Financial assets and financial liabilities not recorded on the consolidated balance sheet at carrying amount
Category

Fair value (Million yen)
Level 1

Level 2

Level 3Total

(1) Investment securities

–

–

–

–

(2) Leasehold and guarantee deposits–

23,384–

23,384

Total assets–

23,384–

23,384

Short-term borrowings (including current
portion of long-term borrowings)

–

3,454

–

3,454

Long-term borrowings

–

3,213

–

3,213

–

6,667

–

6,667

Total liabilities
Note:

Explanation of valuation techniques and inputs used in the determination of fair value

Investment securities
Investment securities for which quoted prices in an active market can be used are classified as Level 1 fair value.
Leasehold and guarantee deposits
The fair values of leasehold and guarantee deposits are calculated based on the present value of the amounts to be repaid
based on the contract period, discounted based on appropriate interest rates such as government bond yield rates, and areclassified as Level 2 fair value.
Short-term borrowings, long-term borrowings
For short-term borrowings and long-term borrowings, fair value is calculated by discounting the total of principal andinterest at an interest rate that would be charged for similar new loans, and such borrowings are classified as Level 2 fairvalue.

- 20 -

9. Notes on revenue recognition(1) Information on revenue from contracts with customers
Reportable segment (Million yen)
Cosmetic and DrugStore Business

Other businesses

Amount(Million yen)

353,180––

353,180

Cosmetics and drug stores–

31,108–31,108Retail store business

–

–

8,334

8,334

4,390

3

1,938

6,332

357,571

31,111

10,273398,955

Other revenue (Note)

–

–

868

868

Sales to third parties

357,571

31,111

11,141

399,824

Dispensing Pharmacy
Business
Dispensing pharmacies

Other
Revenue from contracts withcustomers

Note:

Other revenue includes lease revenue based on the “Accounting Standard for Lease Transactions” (ASBJ
Statement No. 13, March 30, 2007).

(2) Information serving as basis for understanding revenue from contracts with customers
The information serving as basis for understanding revenue is described in “1. Significant Matters as Basisfor Preparing Consolidated Financial Statements, (5) Accounting policies, (iv) Accounting policy for revenue
and expenses” in the notes to consolidated financial statements.
(3) Information concerning the relationship between the fulfilling of performance obligations under contracts
with customers and the cash flows arising from those contracts, as well as the amount and timing of revenue
expected to be recognized in the next consolidated fiscal year and thereafter from contracts with customers
that were in effect as of the end of the consolidated fiscal year under review(i)Balance, etc., of contract liabilities
Consolidated Fiscal Year Under Review (Million yen)
Beginning balance

Receivables arising from contracts withcustomers
Contract liabilities

Ending balance
13,24815,851

532

465

Receivables arising from contracts with customers are included in “Accounts receivable - trade” on the
consolidated balance sheet.
Contract liabilities primarily relate to customer loyalty programs in which points are granted at the time ofsale. Contract liabilities are recorded at the time the points are granted, and the performance obligation forthese is deemed to have been met, and the contract liability is reversed, at the time the points are used orhave expired.
The amount of revenue recognized during the consolidated fiscal year under review that was included in
the contract liabilities balance as of the beginning of the fiscal year was ¥532 million.
(ii) Transaction price allocated to outstanding performance obligations- 21 -

As the company and our consolidated subsidiaries have no significant transactions with contract periods
that are initially expected to exceed one year, the practical expedient has been applied and the disclosureof information concerning outstanding performance obligations has been omitted.
In addition, there is no significant amount of consideration arising from contracts with customers that is
not included in transaction price.

10. Notes on per share information(1) Net assets per share¥3,866.55(2) Earnings per share¥324.64(Note) In calculating net assets per share, the Company’s shares held by the Custody Bank of Japan, Ltd. (Trust
Account E) have been included in treasury shares, which have been deducted from the total number of sharesissued as of the end of the fiscal year (333,000 shares in the fiscal year under review). In addition, in earnings
per share, the shares deducted from the calculation of the average number of shares during the period havebeen included in treasury shares (27,000 shares in the fiscal year under review).

11. Notes on significant subsequent events
No applicable matters are present.

12. Other notes(Additional Information)(Transactions in which shares of the company are issued to employees, etc., through a trust)
The company engages in transactions for the issuance of shares of the company to an employee stock ownershipassociation through a trust with the objective of enhancing employee benefits and providing incentives for
improving the corporate value of the company.
(1) Overview of transactions
The company introduced the “Stock-Based Benefit Trust (Employee Shareholders Association PurchaseType)” (hereinafter referred to as “the Plan”) in April 2024.
At the time of the introduction of the Plan, the company entered into a Stock-Based Benefit Trust (Employee
Shareholders Association Purchase Type) Agreement (the “Trust Agreement”) with the company as the trustor
and Mizuho Trust & Banking Co., Ltd. as the trustee (hereinafter referred to as the “Trustee”) (the trust
established based on the Trust Agreement is hereinafter referred to as “the Trust”). In addition, the Trustee
has entered into an agreement with the Custody Bank of Japan, Ltd., to re-entrust the management of trust
assets such as securities to the Custody Bank of Japan Ltd., as the sub-trustee.
The Custody Bank of Japan, Ltd., will acquire a lump sum of shares of the company in advance for Trust
Account E equivalent to the number of the Company’s shares that are expected to be purchased by the “AINHOLDINGS Employee Shareholders Association” (the “Shareholders Association”) over a period of five
years from the establishment of the trust, and thereafter will sell the shares of the company at the time theShareholders Association purchases shares. If an amount equivalent to the gains on sales of shares isaccumulated in the trust assets of the Trust via the sale of the Company’s shares up until the time of the- 22 -

Trust’s termination, this cash shall be distributed as residual assets to the members of the Shareholders
Association (employees) who satisfy the beneficiary eligibility requirements.
In addition, since the Company provides a guarantee when the Trustee takes out a loan in order for the Trust
E Account to acquire the Company’s shares, in a case in which the Trustee has an outstanding loan balance
equal to the loss on the sale of shares as of the time of Trust’s termination due to a drop in the Company’s
share price or the like, the Company will pay off the outstanding loan balance pursuant to the guarantee
agreements.
(2) Shares of the company remaining in the trust
The shares of the company remaining in the trust are recorded as treasury shares in the net assets section at
acquisition cost in the trust (incidental expenses are excluded). The carrying amount and number of suchtreasury shares for the consolidated fiscal year under review were ¥1,844 million and 333,000 shares,
respectively.
(3) Carrying amount of borrowings recorded through the application of the gross method
Consolidated Fiscal Year Under Review ¥1,845 million- 23 -

Balance sheet(As of April 30, 2024)(Million yen)
Item

AmountItem

AssetsLiabilities
47,792Current assets

AmountCurrent liabilities

59,717

Cash and deposits

33,975

Short-term borrowings

55,362

Prepaid expenses

1,024

Current portion of long-term borrowings

2,629

Short-term loans receivable

10,898

Accounts payable

1,065

Accounts receivable

1,893

Income taxes payable

121

Other current assets

0Provision for bonuses

81

Non-current assets

98,378Property, plant and equipment

2,491

Buildings and structures

1,349

Provision for bonuses for directors (andother officers)
Other current liabilities
Non-current liabilities

16
441
2,936

Tools, furniture and fixtures

73

Long-term borrowings

Land

730

Provision for retirement benefits

53

Other tangible fixed assets

337

Other noncurrent liabilities

312

Intangible assets

4,419

Total liabilities

62,654

Trademark right72

Net assets

3,433

2,571

Shareholders’ equity

83,296913

Share capital

21,894

Investments and other assets

91,468

Capital surplus

21,636

Investment securities

2,524

Legal capital surplus

20,084

Shares of subsidiaries and associates

83,972Other capital surplus

1,551

Deferred tax assets

1,114

Retained earnings

42,201

Leasehold and guarantee deposits

3,346

Other retained earnings

42,201Other investments and other assets

510

General reserve

3,200

Retained earnings brought forward

39,001

Software
Other intangible assets

Treasury shares

Total assets(2,436)

Valuation and translation adjustments

219

Valuation difference on available-forsale securities

219

Total net assets

83,516

Total liabilities and net assets

146,171

146,171- 24 -

Statement of income(From May 1, 2023 to April 30, 2024)(Million yen)
Item

AmountOperating revenue

14,121Gross profit

14,121
9,012

Selling, general and administrative expenses
Operating profit

5,109

Non-operating income

1,142

Non-operating expenses

978Interest expenses

159

Other

818
5,273

Ordinary profit
Extraordinary income

2

Extraordinary losses

134
134

Loss on valuation of investment securities

0

Other

5,140

Profit before income taxes
Income taxes - current

216

Income taxes - deferred(14)

Profit4,939- 25 -

Non-consolidated statements of changes in shareholders’ equity (from May 1, 2023 to April 30,
2024)(Million yen)
Shareholders’ equity
Capital surplus

Retained earnings
Other retained earnings

Share capital

Beginning balance on May
1, 2023
Change during the fiscal
year

Other capitalsurplus

Total capitalsurplus20,084

1,924

22,009Retainedearnings
brought
forwardGeneralreserve

Total
Treasury shares shareholders’equity39,369Dividends of surplus(2,107)(2,107)(2,107)

Profit

4,939

4,939

4,939

(372)

(372)

3,200

Total retained
earnings

36,169Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other than shareholders’equity during the fiscal
year
Total change during the
fiscal year
Ending balance on April
30, 2024

21,894

Legal capitalsurplus(2,436)(2,436)

1,999

1,627

–

(372)

(372)

–

2,831

2,831

(436)

2,023

21,89420,084

1,551

21,636

3,200

39,001

42,201(2,436)

83,296

Valuation difference on
available-for-salesecurities

Total valuation andtranslation adjustments

(15)

(15)

Total net assets

81,258Dividends of surplus(2,107)

Profit

4,939

Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
other than shareholders’equity during the fiscal
year
Total change during the
fiscal year
Ending balance on April
30, 2024

81,273–

Valuation and translation adjustments

Beginning balance on May
1, 2023
Change during the fiscal
year(2,000)(2,436)
1,627
235

235

235

235

235

2,258

219

219

83,516- 26 -

Notes to non-consolidated financial statements
1. Important accounting policies(1) Valuation basis and methods for assets(i)

Shares of subsidiaries and associates

Stated at cost determined by the moving average method(ii) Other securities･ Securities other than shares, etc.,that do not have a market price･ Shares, etc., that do not have amarket priceStated at fair value (valuation differences are booked directly ina separate component of net assets, and cost of securities sold isdetermined by the moving average method)
Stated at cost determined by the moving average method(iii) Valuation basis and methods for inventories
Last purchase cost method･ Supplies(2) Accounting method for depreciation of non-current assets(i) Property, plant and equipment(excluding leased assets)

The declining balance method (however, for buildings[excluding facilities attached to buildings] acquired on or after
April 1, 1998, as well as facilities attached to buildings andstructures that were acquired on or after April 1, 2016, thestraight-line method is applied)(ii) Intangible assets(excluding leased assets)

Straight-line method (software for internal use is amortizedusing the straight-line method over its useful life as internallydetermined (five years))(iii) Leased assets

The straight-line method is applied assuming the lease period as
the useful life without residual value.

(iv) Long-term prepaid expenses

The straight-line method(3) Accounting policy for provisions(i)

Allowance for doubtful accounts

To prepare for credit losses on receivables, an estimateduncollectable amount is provided at the amount estimated byeither using the historical rate of credit loss for general
receivables, or based on individual consideration ofcollectability for specific receivables such as highly doubtfulreceivables.

(ii) Provision for bonuses

For appropriation for the payment of bonuses to employees, ofthe estimated amount of bonuses to be paid, the amountestimated to cover the fiscal year under review is provided.

(iii) Provision for bonuses for directors(and other officers)

In preparation for expenditure on bonuses for directors (andother officers), the amount is recorded based on the estimatedamount of bonuses to be paid for the fiscal year under review.

(iv) Provision for retirement benefits

In order to prepare for the payment of retirement benefits toemployees, the company records an amount based on theestimated retirement benefit obligations and pension assets as of
the final day of the fiscal year under review.
It should be noted that in the calculation of retirement benefit
obligations, expected retirement benefits are attributed to theperiod up to the fiscal year under review on a benefit formulabasis.
Past service cost is amortized using the straight-line method overa certain number of years (six years) within the averageremaining service years of employees when incurred.
- 27 -

Actuarial gains and losses are amortized using the decliningbalance method over a fixed number of years within the averageremaining service period (6 years) of employees at occurrence,from the following fiscal year.
The treatment of unrecognized actuarial gains and losses andunrecognized past service costs in the balance sheet differs fromthat used for the consolidated balance sheet.
(4) Accounting policy for revenue and expenses
Revenue from contracts with customers of the Company are mainly from the provision of services based on
management advisory service contracts executed with consolidated subsidiaries, and are recognized monthly
at the amount prescribed in the respective contract.

2. Notes on changes in accounting policies
No applicable matters are present.
3. Notes on changes in presentation
No applicable matters are present.

4. Notes on accounting estimates
Shares of subsidiaries and associates(i)Amount recorded in the non-consolidated financial statements for the fiscal year under review
Item

AmountShares of subsidiaries and associates¥83,972 million(ii) Information on the content of accounting estimates relating to identified items
A. Calculation method
The company acquires shares of subsidiaries and associates that do not have a market price at their net
asset value, which reflects their respective excess earning power. For this reason, in the case of sharesacquired at a price higher than the net assets per share obtained from the non-consolidated financial
statements of the target company, if the initial excess earning power declines and the net asset value falls
by around 50% or more compared to the acquisition cost, and if there is not sufficient evidence to support
a possible recovery, the policy is to record an impairment loss down to the actual value.
It should be noted in regard to excess earning power that a decision is made as to whether or not the net
asset value, which reflects the excess earning power initially anticipated, has declined significantly
compared to the acquisition cost by ascertaining the achievement status, etc., of the planned values thatwere created based on the operating profit forecast at the time of the acquisition.

- 28 -

B. Main assumptions
The valuation of shares of subsidiaries and associates is based on the planned values that were preparedbased on the operating profit forecasts at the time of acquisition, with the main assumptions for theplanned values being the number of prescriptions and prescription prices for the Dispensing Pharmacy
Business.
C. Impact on non-consolidated financial statements for the following fiscal year
Main assumptions are highly uncertain, and the occurrence of unexpected events or revisions to businessplans, etc., may have a significant impact on the valuation of shares of subsidiaries and associates.

5. Notes on balance sheet(1) Accumulated depreciation of property, plant and equipment¥1,123 million(2) Monetary claims and liabilities to subsidiaries and associates are as shown below.
(i)

Short-term monetary claims¥11,975 million(ii) Short-term monetary liabilities¥55,437 million(iii) Long-term monetary liabilities¥69 million

6. Notes on statement of income
Volume of trade with subsidiaries and associates(i)Operating revenue¥14,121 million(ii) Selling, general and administrative expenses¥2 million(iii) Volume of trade other than business transactions¥1,085 million

7. Notes to non-consolidated statements of changes in shareholders’ equity
Number of treasury sharesClass of shares

Common shares

Number of shares at the
beginning of the fiscal year
under review
298 thousand shares

Increase in number
Decrease inof shares of the number of shares offiscal year under
the fiscal year
reviewunder review
433 thousand
shares

298 thousand
sharesNumber of shares at theending of the fiscal year
under review
433 thousand shares(Note) The increase of 433,000 shares of common shares in treasury shares was due to the acquisition of 100,000
shares of treasury shares based on a resolution of the Board of Directors, the acquisition of 333,000 sharesof treasury shares through the introduction of a stock benefit trust (employee stock ownership plan disposaltype), and the purchase of 0 thousand shares of less than one minimum trading unit. The decrease of
298,000 shares of common shares in treasury shares was due to the disposal of 2,000 shares by the grantof restricted stock compensation and the disposal of 295,000 shares by the introduction of a stock benefit
trust (employee stock ownership plan disposal type). The number of treasury shares as of the end of theconsolidated fiscal year under review includes the Company’s shares (333,000 shares) held by Custody
Bank of Japan, Ltd. (Trust Account E) related to the stock benefit trust (employee stock ownership plandisposal type).
- 29 -

8. Notes on tax-effect accounting
Major components of deferred tax assets and liabilities(Deferred tax assets)
Impairment losses
Exceeded provision for bonuses
Exceeded provision for retirement benefits
Shares of subsidiaries and associates relating to corporate
division
Other
Deferred tax assets subtotal
Valuation allowance
Total deferred tax assets¥263 million¥24 million¥16 million¥1,123 million¥164 million¥1,593 million¥(379) million¥1,213 million(Deferred tax liabilities)
Removal cost assets
Valuation difference on available-for-sale securities
Total deferred tax liabilities
Net: Net deferred tax assets
9. Notes on transactions with related parties(1) Parent company and major corporate shareholders, etc.
No applicable matters are present.
(2) Directors (and other officers) and major individual shareholders, etc.
No applicable matters are present.

- 30 -¥(3) million¥(96) million¥(99) million¥1,114 million

(3) Subsidiaries, etc.
Type

Subsidiary

Subsidiary

Subsidiary

Subsidiary

Subsidiary

Subsidiary

Name of company, etc.

AIN PHARMACIEZ
INC.

Asahi Pharmacy Co.,
Ltd.

WHOLESALESTARS Co., Ltd.

DAICHIKU Co., Ltd.

Pharmacy Co., Ltd.

AIN SHINSHU Co.,Ltd.

Voting rights,
etc., holding
ratio (%)

Relationshipwith related
party

100.0 direct

Management
guidance
contract has
been executed
Mutual use offunds
Concurrently
serving as
directors (andother officers)100.0 direct

100.0 direct

100.0 direct

100.0 direct

100.0 direct

Management
guidance
contract has
been executed
Mutual use offunds
Concurrently
serving as
directors (andother officers)
Management
guidance
contract has
been executed
Mutual use offunds
Concurrently
serving as
directors (andother officers)
Management
guidance
contract has
been executed
Mutual use offunds
Concurrently
serving as
directors (andother officers)
Management
guidance
contract has
been executed
Mutual use offunds
Concurrently
serving as
directors (andother officers)
Management
guidance
contract has
been executed
Mutual use offunds
Concurrently
serving as
directors (andother officers)

Details oftransactions

Transaction
amount(Million yen)Consulting fee
income (Note) 1.

6,481

–

–

810

–

–

Rental income (Note)1.
Collection of funds(Note) 2., 3.

Endingbalance(Million yen)

Item

Short-term
3,608 loans
receivable

10,108Interest income(Note) 2., 3.

56

–

–

Consulting fee
income (Note) 1.

323

–

–

Return of funds(Note) 2., 3.

563

Interest paid (Note)2., 3.

43––

Consulting fee
income (Note) 1.

1,806

–

–

Borrowing of funds(Note) 2., 3.

2,788Interest paid (Note)2., 3.

49––

Consulting fee
income (Note) 1.

163

–

–

Borrowing of funds(Note) 2., 3.

183

Consulting fee
income (Note) 1.

346

Borrowing of funds(Note) 2., 3.

1,248

Consulting fee
income (Note) 1.

125

Borrowing of funds(Note) 2., 3.

69

Short-termborrowings

16,570

Short-termborrowings

17,878

Short-termborrowings

5,890

–

Short-termborrowings

5,720

–

Short-termborrowings

–

–

3,449

Transaction conditions and policy for determining transaction conditions, etc.
Notes: 1. The conditions, etc., of transactions, including consulting between groups, are determined in reference to market rates,
etc.
2. For borrowing and lending within the Group, interest rates are determined in reference to market interest rates.
3. The amount of transactions relating to borrowing and lending within the Group is the net increase or decrease for the
fiscal year under review.

- 31 -

10. Notes on revenue recognition
Information serving as basis for understanding revenue from contracts with customers
The information serving as basis for understanding revenue is as described in “1. Important accounting policies(4) Accounting policy for revenue and expenses” of the Notes to non-consolidated financial statements.
11. Notes on per share information(1) Net assets per share¥2,386.57(2) Earnings per share¥140.65(Note) In calculating net assets per share, the Company’s shares held by the Custody Bank of Japan, Ltd. (Trust
Account E) have been included in treasury shares, which have been deducted from the total number of sharesissued as of the end of the fiscal year (333,000 shares in the fiscal year under review). In addition, in earnings
per share, the shares deducted from the calculation of the average number of shares during the period havebeen included in treasury shares (27,000 shares in the fiscal year under review).

12. Notes on significant subsequent events
No applicable matters are present.
13. Other notes(Additional Information)(Transactions in which shares of the company are issued to employees, etc., through a trust)As the content is the same as stated in “12. Other notes (Additional information) (Transactions in which sharesof the company are issued to employees, etc., through a trust)” of the Notes to consolidated financial statements,
this note has been omitted.

- 32 -

(TRANSLATION)

Accounting audit report on the consolidated financial statements

Independent Auditor’s Report (Translation)
June 25, 2024
AIN HOLDINGS INC.
Attn. Board of Directors

Ernst & Young ShinNihon LLC
Sapporo Office

Designated Engagement
Partner

Certified Public
Naohiko Kataoka
Accountant

Designated Engagement
Partner

Certified Public
Accountant

Wataru Araki

Audit Opinion
Pursuant to Article 444, paragraph (4) of the Companies Act, we have audited the accompanying consolidated
financial statements, which comprise the consolidated balance sheet, the consolidated statement of income, theconsolidated statements of changes in shareholders’ equity, and the notes to the consolidated financial statements of
AIN HOLDINGS INC. (the “Company”) applicable to the fiscal year from May 1, 2023 to April 30, 2024.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, thefinancial position and results of operations of the corporate group comprising of AIN HOLDINGS INC. and its
consolidated subsidiaries, and its corporate group, in accordance with accounting principles generally accepted inJapan.

Basis for Audit Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities underthose standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial
Statements section of our report. We are independent of the Company and its consolidated subsidiaries in accordancewith the ethical requirements that are relevant to our audit of the consolidated financial statements in Japan, and we- 33 -

have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other content of statements
The other content of statements is the Business Report and the supplementary schedules thereto. Management is
responsible for the preparation and disclosure of such other content of statements. In addition, Audit & Supervisory
Board Members and the Audit & Supervisory Board are responsible for overseeing the Directors’ performance of
duties within the maintenance and operation of the other content of statements reporting process.
Our audit opinion on the consolidated financial statements does not include any of the other content of statements,
and we do not express any opinion on such other content of statements.
Our responsibility in auditing the consolidated financial statements is to read the other content of statements and, inthe process of reading the other content of statements, to consider whether there are any material differences between
the other content of statements and the consolidated financial statements or the knowledge we have gained over thecourse of our audit, and to pay attention as to whether or not there are any indications of material misstatements inthe other content of statements other than such material differences.
Our audit firm, in the event of having determined there to be material misstatements in the other content of statements
based on the work we have performed, is required to report this.
There are no matters that should be reported by our audit firm in relation to the other content of statements.

Responsibilities of Management, Audit & Supervisory Board Members and the Audit & Supervisory Boardfor the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of consolidated financial statements inaccordance with corporate accounting standards that are generally accepted in Japan. This includes the establishment
and operation of internal controls that management has determined to be necessary in order to prepare and fairly
present consolidated financial statements that are free from material misstatements caused by fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing whether it is appropriate
to prepare the consolidated financial statements with the assumption of the Group’s ability to continue as a going
concern and disclosing, as required by accounting principles generally accepted in Japan, matters related to going
concern.
Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for overseeing the
Directors’ performance of duties within the maintenance and operation of the financial reporting process.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our responsibilities are to obtain reasonable assurance about whether the consolidated financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes ouropinion on the consolidated financial statements based on our audit from an independent point of view. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate they could reasonably
be expected to influence the decisions of users taken on the basis of the consolidated financial statements.
In accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:- 34 -



Identify and assess the risks of material misstatement caused by fraud or error. In addition, we design andperform audit procedures responsive to the risks of material misstatements. Selecting audit procedures to be
applied is at the discretion of the auditor. Obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion.

Consider, in making those risk assessments, internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, while the purpose of the audit of the consolidated
financial statements is not expressing an opinion on the effectiveness of the Group’s internal control.

Evaluate the appropriateness of accounting policies used by management and their method of application, as
well as the reasonableness of accounting estimates by management and related notes thereto.

Conclude on the appropriateness of management’s use of the going concern basis for preparing theconsolidated financial statements and, based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as agoing concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related notes to the consolidated financial statements or, if the notes to the consolidated
financial statements on material uncertainty are inadequate, to express a qualified opinion with exceptions on
the consolidated financial statements. Our conclusions are based on the audit evidence obtained up to the dateof our auditor’s report. However, future events or conditions may cause the Group to cease to continue as agoing concern.



Evaluate whether the presentation of the consolidated financial statements and the notes thereto are inaccordance with accounting standards generally accepted in Japan, as well as evaluate the overall
presentation, structure and content of the consolidated financial statements, including the related notes thereto,
and whether the consolidated financial statements fairly represent the underlying transactions and accounting
events.

Obtain sufficient and appropriate audit evidence regarding the financial information of the Company and its
consolidated subsidiaries to express an opinion on the consolidated financial statements. We are responsible
for the direction, supervision and performance of the audit of the consolidated financial statements. We remainsolely responsible for our audit opinion.

We communicate with Audit & Supervisory Board Members and the Audit & Supervisory Board regarding theplanned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit, and other matters required by auditing standards.
We also provide Audit & Supervisory Board Members and the Audit & Supervisory Board with a statement that wehave complied with the ethical requirements in Japan regarding independence that are relevant to our audit of thefinancial statements, and communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related measures taken to remove obstruction factors to
independence or related safeguards in order to mitigate obstruction factors to a tolerable level.

Conflicts of Interest
Our firm and the designated engagement partners have no interest in the Company and its consolidated subsidiaries
which should be disclosed in accordance with the Certified Public Accountants Act.

The above represents a translation, for convenience only, of the original report issued in the Japanese language.
- 35 -

(TRANSLATION)

Accounting audit report on the non-consolidated financial statements

Independent Auditor’s Report (Translation)
June 25, 2024
AIN HOLDINGS INC.
Attn. Board of Directors

Ernst & Young ShinNihon LLC
Sapporo Office

Designated Engagement
Partner

Certified Public
Accountant

Designated Engagement
Partner

Naohiko Kataoka

Certified Public
Wataru Araki
Accountant

Audit Opinion
Pursuant to Article 436, paragraph (2), item (i) of the Companies Act, we have audited the accompanying nonconsolidated financial statements, which comprise the non-consolidated balance sheet, the non-consolidated
statement of income, the non-consolidated statements of changes in shareholders’ equity, the notes to the NonConsolidated Financial Statements and the related supplemental schedules (collectively, “non-consolidated financial
statements, etc.”) of AIN HOLDINGS INC. (the “Company”) applicable to the 55th fiscal year from May 1, 2023 toApril 30, 2024.
In our opinion, the non-consolidated financial statements, etc. referred to above present fairly, in all material respects,
the financial position and results of operations of the Company, in accordance with accounting principles generally
accepted in Japan.

Basis for Audit Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities underthose standards are further described in the Auditor’s Responsibilities for the Audit of the Non-consolidated Financial
Statements, Etc. section of our report. We are independent of the Company in accordance with the ethical- 36 -

requirements that are relevant to our audit of the non-consolidated financial statements, etc. in Japan, and we havefulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our opinion.

Other content of statements
The other content of statements is the Business Report and the supplementary schedules thereto. Management is
responsible for the preparation and disclosure of such other content of statements. In addition, Audit & Supervisory
Board Members and the Audit & Supervisory Board are responsible for overseeing the Directors’ performance of
duties within the maintenance and operation of the other content of statements reporting process.
Our audit opinion on the non-consolidated financial statements, etc., does not include any of the other content ofstatements, and we do not express any opinion on such other content of statements.
Our responsibility in auditing the non-consolidated financial statements, etc., is to read the other content and, in theprocess of reading the other content of statements, to consider whether there are any material differences between
the other content of statements and the non-consolidated financial statements, etc., or the knowledge we have gained
over the course of our audit, and to pay attention as to whether or not there are any indications of material
misstatements in the other content of statements other than such material differences.
Our audit firm, in the event of having determined there to be material misstatements in the other content of statements
based on the work we have performed, is required to report this.
There are no matters that should be reported by our audit firm in relation to the other content of statements.

Responsibilities of Management, Audit & Supervisory Board Members and the Audit & Supervisory Boardfor the Non-consolidated Financial Statements, Etc.
Management is responsible for the preparation and fair presentation of non-consolidated financial statements, etc.,
in accordance with corporate accounting standards that are generally accepted in Japan. This includes theestablishment and operation of internal controls that management has determined to be necessary in order to prepare
and fairly present non-consolidated financial statements, etc., that are free from material misstatements caused byfraud or error.
In preparing the non-consolidated financial statements, etc., management is responsible for assessing whether it isappropriate to prepare the non-consolidated financial statements, etc. with the assumption of the Company’s ability
to continue as a going concern and disclosing, as required by accounting principles generally accepted in Japan,
matters related to going concern.
Audit & Supervisory Board Members and the Audit & Supervisory Board are responsible for overseeing the
Directors’ performance of duties within the maintenance and operation of the financial reporting process.

Auditor’s Responsibilities for the Audit of the Non-consolidated Financial Statements, Etc.
Auditors are responsible for obtaining reasonable assurance about whether the non-consolidated financial statements,
etc. as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s reportthat includes our opinion on the non-consolidated financial statements, etc. based on our audit from an independent
point of view. Misstatements can arise from fraud or error and are considered material if, individually or in theaggregate they could reasonably be expected to influence the decisions of users taken on the basis of the nonconsolidated financial statements, etc.
- 37 -

In accordance with auditing standards generally accepted in Japan, we exercise professional judgment and maintainprofessional skepticism throughout the audit. We also:

Identify and assess the risks of material misstatement caused by fraud or error. In addition, we design andperform audit procedures responsive to the risks of material misstatements. Selecting audit procedures to be
applied is at the discretion of the auditor. Obtain audit evidence that is sufficient and appropriate to provide abasis for our opinion.

Consider, in making those risk assessments, internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, while the purpose of the audit of the non-consolidated
financial statements, etc. is not expressing an opinion on the effectiveness of the internal control.

Evaluate the appropriateness of accounting policies used by management and their method of application, as
well as the reasonableness of accounting estimates by management and related notes thereto.

Conclude on the appropriateness of management’s use of the going concern basis for preparing the nonconsolidated financial statements, etc. and, based on the audit evidence obtained, whether a material
uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability tocontinue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related notes to the non-consolidated financial statements, etc. or, if thenotes to the non-consolidated financial statements, etc. on material uncertainty are inadequate, to express aqualified opinion with exceptions on the non-consolidated financial statements, etc. Our conclusions are basedon the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions
may cause the Group to cease to continue as a going concern.



Evaluate whether the presentation of the non-consolidated financial statements, etc. and the notes thereto arein accordance with accounting standards generally accepted in Japan, as well as evaluate the overall
presentation, structure and content of the non-consolidated financial statements, etc., including the related
notes thereto, and whether the non-consolidated financial statements, etc. fairly represent the underlying
transactions and accounting events.

We communicate with Audit & Supervisory Board Members and the Audit & Supervisory Board regarding theplanned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit, and other matters required by auditing standards.
We also provide Audit & Supervisory Board Members and the Audit & Supervisory Board with a statement that wehave complied with the ethical requirements in Japan regarding independence that are relevant to our audit of thefinancial statements, and communicate with them all relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related measures taken to remove obstruction factors to
independence or related safeguards in order to mitigate obstruction factors to a tolerable level.

Conflicts of Interest
Our firm and the designated engagement partners have no interest in the Company which should be disclosed inaccordance with the Certified Public Accountants Act.

The above represents a translation, for convenience only, of the original report issued in the Japanese language.

- 38 -

(TRANSLATION)

Audit Report by Board of Corporate Auditors

Audit Report

The Board of Corporate Auditors reports the below having prepared this Audit Report following deliberation basedon the audit reports prepared by each Corporate Auditor with respect to the execution of duties by the Directors in
the 55th business term from May 1, 2023 to April 30, 2024.

1. Methods of audit by Corporate Auditors and the Board of Corporate Auditors and content thereof(1) In addition to setting forth audit policies, the division of duties, etc. and receiving reports on the status of
implementation of audits and results thereof from each Corporate Auditor, the Board of Corporate Auditors
received reports on the status of execution of duties of Directors, etc. and the accounting auditor therefrom,and requested explanations as necessary.
(2) In conformance with the corporate audit standards set forth by the Board of Corporate Auditors, each
Corporate Auditor endeavored to communicate with Directors, the internal audit department, other employees,
etc. to gather information and put an audit environment in place in accordance with audit policies, the divisionof duties, etc. Simultaneously, each Corporate Auditor performed audits using the below methods.
(i)

Corporate Auditors attended meetings of the Board of Directors and other key meetings, received reports
from Directors, employees, etc. regarding the status of the execution of their duties, requested
explanations as necessary, reviewed important final approval documents, etc., and investigated the statusof business and property at the headquarters and primary offices. Additionally, in regard to subsidiaries,
Corporate Auditors endeavored to communicate and exchange information with subsidiary Directors,
Corporate Auditors, etc. and received business reports from subsidiaries as necessary.

(ii) With regard to the content of Board of Directors resolutions concerning the development of the systemfor ensuring that the performance of duties by Directors complies with relevant laws, regulations, and
the Articles of Incorporation as stated in the Business Report and other systems set forth in Article 100,
paragraphs (1) and (3) of the Regulations for Enforcement of the Companies Act as systems necessary
to ensure the appropriateness of the business of the Company Group consisting of the stock company
and its subsidiaries, as well as systems developed in accordance with said resolutions (internal control
systems), Corporate Auditors regularly received reports on the status of construction and operation
thereof from Directors, employees, etc., requested explanations as necessary, and stated their opinions.
(iii) In addition to monitoring and verifying that the accounting auditor maintains an independent positionand performs proper audits, Corporate Auditors received reports from the accounting auditor on the statusof execution of the duties thereof and requested explanations as necessary. Additionally, Corporate
Auditors received notification from the accounting auditor that “systems for ensuring that the executionof duties is carried out properly” (matters listed in each item of Article 131 of the Regulations on
Corporate Accounting) have been developed in accordance with the Quality Control Standards for Audits(Business Accounting Council), etc. and requested explanations as necessary.

- 39 -

In accordance with the above methods, the Board of Corporate Auditors examined the Business Report andsupplementary schedules thereto, non-consolidated financial statements (non-consolidated balance sheet, nonconsolidated statement of income, non-consolidated statements of changes in shareholders’ equity and notes to nonconsolidated financial statements) and supplementary schedules thereto and consolidated financial statements(consolidated balance sheet, consolidated statement of income, consolidated statements of changes in shareholders’equity and notes to consolidated financial statements) for the fiscal year under review.

2. Audit results(1) Results of audit of Business Report, etc.
(i)

We find the Business Report and supplementary schedules thereto to correctly present the status of theCompany in accordance with relevant laws, regulations, and the Articles of Incorporation.

(ii) With regard to the execution of duties by Directors, as described in the Business Report, it was discoveredthat two former directors of the Company and its group companies had engaged in the obstruction of
auctions related to public contracts. The Audit & Supervisory Board will continue to closely monitor the
status of the implementation of recurrence prevention measures, taking into account investigation reports
and recommendations on recurrence prevention measures of an investigative team composed of external
experts. With the exception of the above, no acts of impropriety regarding the execution of duties of
Directors or material facts in violation of relevant laws, regulations or the Articles of Incorporation havebeen found.
(iii) We find the content of resolutions of the Board of Directors regarding internal control systems to beappropriate. Additionally, there were no findings to point out with respect to the content of statements in
the Business Report regarding said internal control systems or the execution of related duties by Directors.
(2) Results of audit of non-consolidated financial statements and supplementary schedules thereto
We find the audit methods and results by Ernst & Young ShinNihon LLC, the accounting auditor, to bereasonable.
(3) Results of audit of consolidated financial statements
We find the audit methods and results by Ernst & Young ShinNihon LLC, the accounting auditor, to bereasonable.
June 26, 2024
AIN HOLDINGS INC. Board of Corporate Auditors

Standing
AuditorCorporate

Koichi Kawamura[SEAL]

OutsideAuditorCorporate

Akira Ibayashi[SEAL]

OutsideAuditorCorporate

Osamu Muramatsu[SEAL]- 40 -