Summary of Financial Statements for Fiscal Year Ended April 2017
June 6, 2017
AIN HOLDINGS INC.
First Section of Tokyo Stock Exchange and Sapporo Securities Exchange
9627
URL: http://www.ainj.co.jp/
Kiichi Otani, President and Representative Director
Toshihide Mizushima, Representative Senior Managing Director
TEL: +81-11-814-1000
Date of the ordinary general meeting of shareholders:
July 28, 2017
Date of scheduled payment of dividends:
July 31, 2017
Date of filing securities report:
July 31, 2017
Supplementary documents for this summary of financial statements: Yes
Explanation meeting for financial results:
Yes (for institutional investors and analysts)
Name of listed company:
Exchange listed on:
Code number:
Representative:
Inquiries:(Amounts are rounded down to the nearest million yen.)

1. Consolidated results for the fiscal year ended April 2017 (from May 1, 2016 to April 30, 2017)(Percentage figures show year-on-year changes.)(1) Consolidated operating results
Net salesYear ended April 30, 2017
Year ended April 30, 2016

Operating income

Profit attributable toowners of parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

248,110
234,843

5.6
25.0

14,563
14,619(0.4)
27.7

15,08015,158

(0.5)
29.6

7,949
7,917

0.4
27.8

(Note) Comprehensive income:Year ended April 30, 2017: ¥8,122 million (+3.7%)
Year ended April 30, 2016: ¥7,831 million (+21.7%)

Earnings per
share
Year ended April 30, 2017
Year ended April 30, 2016

Diluted earnings
per share

Ordinary income
to total assets

Return on equity

Operating income
to net sales

Yen

Yen

%

%

%

250.71
249.69

–
–

14.0
15.6

10.2
11.9

5.9
6.2

(Reference) Equity in earnings of affiliates: Year ended April 30, 2017: ¥ – million, Year ended April 30, 2016: ¥ – million(2) Consolidated financial position
Total assets
As of April 30, 2017
As of April 30, 2016

Shareholders’ equity
ratio

Net assets

Net assets per share

Million yen

Million yen%

Yen156,323
139,888

60,17853,32438.4
38.1

1,895.63
1,679.69(Reference) Equity capital: As of April 30, 2017: ¥60,105 million

As of April 30, 2016: ¥53,258 million(3) Consolidated cash flows
Cash flows fromoperating activities
Year ended April 30, 2017
Year ended April 30, 2016

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents
at end of year

Million yen

Million yen

Million yen

Million yen

18,40921,352(11,183)(20,877)

116
2,028

29,234
21,892

2. Dividends
Dividends per share

Total
dividends(annual)Dividends
payout ratio

Dividends on
net assets

1Q-end2Q-end3Q-endYear-end

Annual

Yen

Yen

Yen

Yen

Yen

Million yen(consolidated)%(consolidated)%Year ended April 30, 2017

–
–

0.00
0.00

–
–

40.00
50.00

40.00
50.00

1,268
1,585

16.0
19.9

2.5
2.8

Year ending April 30, 2018
(forecast)

–

0.00

–

50.00

50.00

Year ended April 30, 2016

17.8

3. Consolidated financial forecast for the fiscal year ending April 30, 2018 (from May 1, 2017 to April 30, 2018)
Net sales

Operating income(Percentage figures show year-on-year changes.)
Net income
Ordinary income
Net income
per share
Million yen%
Million yen%
Yen

Million yen%

Million yen%

First half

129,400

10.7

6,700

32.7

6,900

29.1

3,600

26.1

113.54

Full year

267,500

7.8

16,60014.0

17,000

12.7

8,900

12.0

280.69* Notes(1) Major changes in subsidiaries during the fiscal year (changes in specified subsidiaries resulting in changes inscope of consolidation): No
Newly consolidated: –Excluded: –(2) Changes in accounting principles, changes in accounting estimates, and restatement of revisions
1) Changes in accounting principles as a result of revisions to accounting standards, etc.: No
2) Changes in accounting principles other than 1):
No3) Changes in accounting estimates:
No4) Restatement of revisions:No(3) Number of outstanding shares (common stock):1) Number of outstanding
shares (including treasury As of April 30, 2017
stock):
2) Number of shares held in
As of April 30, 2017
treasury:
3) Average number of
Fiscal year endedApril 30, 2017
shares outstanding:

31,888,212 shares As of April 30, 2016

31,888,212 shares

180,644 shares As of April 30, 2016

180,595 shares

31,707,568 sharesFiscal year endedApril 30, 2016

31,707,617 shares*This Summary of Financial Statements is outside the scope of audit procedures.
*Statement regarding the proper use of financial forecasts and other special remarks:
The above forecasts are calculated based on the information available as of the publication date of this material, and actual
financial results may vary due to change in future economic conditions and others.

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017

Contents of Attachment
1. Operating Results and Other................................................................................................................................ 2(1) Overview of operating results for the current fiscal year .................................................................................................. 2(2) Overview of financial position for the current fiscal year .................................................................................................. 3(3) Overview of cash flows for the current fiscal year ............................................................................................................ 3(4) Future outlook .................................................................................................................................................................. 4

2. Basic Stance on Selection of Accounting Standards ........................................................................................... 4
3. Consolidated Financial Statements ...................................................................................................................... 5(1) Consolidated balance sheet............................................................................................................................................. 5(2) Consolidated statement of income and comprehensive income ...................................................................................... 7
Consolidated statement of income ................................................................................................................................... 7
Consolidated statement of comprehensive income.......................................................................................................... 9(3) Consolidated statement of changes in net assets .......................................................................................................... 10(4) Consolidated statement of cash flows............................................................................................................................ 12(Segment Information, etc.) ................................................................................................................................................. 14-1-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017

1. Operating Results and Other(1) Overview of operating results for the current fiscal year
During the fiscal year ended April 30, 2017, consumer spending in the Japanese economy picked up overallagainst a backdrop of improving employment conditions, and corporate earnings improved amid an upturn inproduction and capital investment.
In this economic environment, the AIN HOLDINGS Group (the Group) worked to expand its business andincrease earnings. Specifically, the Group opened new dispensing pharmacies and used M&A to expand thebusiness. It also developed its urban drug and cosmetic store business.
For the fiscal year under review, net sales rose 5.6% year on year to ¥248,110 million, operating income
decreased 0.4% to ¥14,563 million, ordinary income decline 0.5% to ¥15,080 million and net income
attributable to owners of the parent increased 0.4% year on year to ¥7,949 million.
Performance by business segment was as follows.

(Dispensing pharmacy business)
In drug price and dispensing fee revisions in April 2016, the role of pharmacies located near hospitals wasreevaluated, but in order to realize patient-focused non-hospital dispensing services, pharmacists anddispensing pharmacies are now being required to play a key role at the heart of local communities.
To ensure our pharmacists and dispensing pharmacies fulfill their role at the heart of local communities, theGroup continues to build links with local healthcare service providers, mainly in the area of home-based
dispensing, step up the integration and continuous management of drug information using patient medication
notebooks and other means, and promote wider use of generic drugs.
The shortage of pharmacists in the healthcare sector is becoming more serious. To address this issue, theGroup is working to attract new graduates, with 307 new pharmacist graduates joining the Group in April 2017.
The Group is also upgrading pharmacist training programs to enhance their capabilities so that they can fill
their role as pharmacists at the heart of the community.
In business development, the Group pushed ahead with business expansion by opening new dispensing
pharmacies and using M&A deals.
In December 2016, AOI Pharmacy Corporation (Sendai-shi, Miyagi Prefecture), which operates a total of 115
dispensing pharmacies across Japan, became a subsidiary of the Group. As a result, the Group now operates
a network of more than 1,000 dispensing pharmacies in Japan’s 47 prefectures. The Group intends to use theacquisition of the company to further strengthen its network of dispensing pharmacies to support local
healthcare provision.
During the fiscal year under review, the Group opened 209 dispensing pharmacies, including pharmacies
acquired from AOI Pharmacy Corporation and other M&A deals, and closed 24, resulting in a total of 1,066. As
a result, the dispensing pharmacy business reported sales of ¥221,801 million, up 5.1% year on year, andsegment income of ¥19,110 million, down 0.6% year on year.

(Drug and cosmetic store business)
In the drug and cosmetic store business, the market environment remained challenging due to a narrowing
competitive gap between companies in the sector and the emergence of new competitors from sector
consolidation and realignment that also extends to other business sectors.
Against this backdrop, the Group continued to open ainz & tulpe urban drug stores and worked to makestores more appealing by refurbishing existing stores and strengthening merchandise lineups, particularly drug
and cosmetics products.
-2-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017

We also actively developed proprietary merchandise brands such as LIPS and HIPS and cocodecica, leading
to an increase in profit margins.
For the fiscal year under review, the drug and cosmetic store business reported an increase in sales of 2.4%
year on year to ¥21,383 million. However, segment loss was ¥866 million, compared with segment loss of ¥459
million a year earlier.
During the fiscal year under review, the Group opened ainz & tulpe Colette Mare SAKURAGICHO-B1 (Naka
Ward, Yokohama), ainz & tulpe GINZA NAMIKIDORI (Chuo Ward, Tokyo), ainz & tulpe KITASENJU MARUI(Adachi Ward, Tokyo), ainz & tulpe Colette Mare SAKURAGICHO (Naka Ward, Yokohama), ainz & tulpe
MARRONNIER GATE GINZA (Chuo Ward, Tokyo), ainz & tulpe KEIO DEPARTMENT STORE SHINJUKU(Shinjuku Ward, Tokyo) and ainz & tulpe YOKOHAMA JOINUS (Nishi Ward, Yokohama), as well as LIPS andHIPS Style Store SHINSAPPORO Sunpiazza (Atsubetsu Ward, Sapporo) and LIPS and HIPS TOKYU PLAZAOMOTESANDO HARAJUKU (Shibuya Ward, Tokyo), which mainly sells proprietary brands. Nine stores werealso closed, resulting in a total of 52 cosmetic and drugs stores at the end of the fiscal year.

(Other businesses)
Net sales from other businesses rose 67.0% year on year to ¥4,925 million and segment loss was ¥1,496
million compared with the loss of ¥1,142 million a year earlier.

(2) Overview of financial position for the current fiscal year
The balance of total assets at the end of the fiscal year under review increased by ¥16,435 million to¥156,323 million.
This mainly reflected increases in cash on hand and in banks and increases in property, plant and equipment
such as land, buildings and structures, and goodwill due to the Group’s business expansion through new store
openings and M&A.
The balance of liabilities increased ¥9,580 million to ¥96,144 million.
The balance of short- term and long-term debts increased by ¥5,307 million to ¥25,851 million.
Total net assets increased by ¥6,854 million to ¥60,178 million and the shareholders’ equity ratio increased
0.3 percentage points to 38.4%.

(3) Overview of cash flows for the current fiscal year
In the fiscal year under review, cash on hand and in banks (“cash”) increased ¥7,342 million (33.5%) year on
year to ¥29,234 million. This reflected operating cash flow generated by dispensing pharmacy and drug andcosmetic store businesses, which was mainly used to actively invest in new store openings and M&A. Somecash was also retained to provide constant access to a certain level of funds.
Cash flows from each category and their relevant factors are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥18,409 million, a decrease of 13.8% year on year.
The main items that were positive for cash flow were income before income taxes of ¥14,307 million, as well
as depreciation and amortization of ¥3,687 million, amortization of goodwill of ¥3,654 million related tobusiness expansion through new store openings and M&A, and a decrease in accounts payable of ¥5,369
million.
The main items that were negative for cash flow was income taxes paid of ¥7,695 million.

-3-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017

(Cash flows from investing activities)
Net cash used in investing activities totaled ¥11,183 million, a decrease of 46.4% year on year.
This mainly reflected payments of ¥2,415 million for purchases of property, plant and equipment related tothe opening of new urban drug stores and dispensing pharmacies, and ¥9,697 million for purchases of sharesin subsidiaries due to changes in the scope of consolidation related to shares acquired in 40 companies
through M&A deals.
(Cash flows from financing activities)
Net cash provided by financing activities decline 94.2% year on year to ¥116 million.
This was mainly attributable to net short-term debt repayment of ¥391 million and net long-term debt
procurement of ¥2,512 million.
Cash dividends paid of ¥1,268 million also had a negative impact on cash flows from financing activities.
Changes in the Group’s cash flow indicators are shown below.
Year ended April
30, 2014

Year ended April
30, 2015

Year ended April
30, 2016

Year ended April
30, 2017

Shareholders’ equity ratio (%)

41.5

42.0

38.1

38.4

Equity ratio based on market value (%)

70.3

117.9

121.0

156.6

Debt redemption term (years)

0.9

1.1

1.0

1.5

Interest coverage ratio (times)

143.0

179.2

226.6

128.0

Notes:

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

(4) Future outlook
In the fiscal year ending April 30, 2018, the dispensing pharmacy business will continue to develop new
dispensing pharmacies and actively seek M&A opportunities. Also, the drug and cosmetic store business will
work to expand its business by continuing to open ainz & tulpe urban drug stores.
Based on these initiatives, the Group forecasts net sales for the fiscal year ending April 30, 2018 of ¥267,500
million, up 7.8% year on year, ordinary income of ¥17,000 million, up 12.7%, and net income attributable toowners of the parent of ¥8,900 million, an increase of 12.0%.

2. Basic stance on selection of accounting standards
The Group has adopted Japanese accounting standards in order to facilitate comparison with other domestic
companies in the same sector.

-4-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017

3. Consolidated Financial Statements(1) Consolidated balance sheet(Thousand yen)

AssetsCurrent assets
Cash on hand and in banks
Notes and accounts receivable
Merchandise
Supplies
Deferred tax assets
Short-term loans
Other accounts receivable
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
LandConstruction in progress
Other property, plant and equipment
Accumulated depreciation
Other property, plant and equipment, net
Total property, plant and equipment
Intangible fixed assets
Goodwill
Other intangible fixed assets
Total intangible fixed assets
Investments and other assets
Investments in securities
Long-term loans
Deferred tax assets
Net defined benefit asset
Deposits and guarantees
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-5-Previous fiscal year
(As of April 30, 2016)

Current fiscal year
(As of April 30, 2017)

22,647,300
12,385,821
10,661,177
323,473
1,149,432
639,457
5,983,629
2,806,438(3,337)56,593,392

29,775,207
9,990,401
11,402,078
266,095
1,166,620
632,826
9,402,024
2,829,934(44,443)
65,420,745

25,831,603(11,136,865)
14,694,738
9,537,493
813,083
10,163,480(7,055,474)
3,108,005
28,153,320

28,026,344(12,661,079)
15,365,264
9,958,446
316,930
10,899,962(8,076,596)
2,823,365
28,464,007

33,337,372
2,248,861
35,586,233

40,939,448
2,170,041
43,109,490

2,677,643
1,801,723
2,038,851
174,220
10,013,440
4,086,587(1,237,174)
19,555,292
83,294,846
139,888,239

2,435,333
1,194,373
2,167,711
22,423
10,443,221
3,378,326(312,044)
19,329,345
90,902,843
156,323,588

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017
(Thousand yen)

Liabilities
Current liabilities
Accounts payable
Short-term debt
Accrued income taxes
Deposits received
Allowance for bonuses to employees
Allowance for bonuses to directors
Reserve for reward obligations
Provision for sales returns
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term debt
Lease obligations
Net defined benefit liability
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding gains (losses) on securities
Remeasurement of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-6-

Previous fiscal year
(As of April 30, 2016)

Current fiscal year
(As of April 30, 2017)

39,987,595
5,690,001
4,448,862
10,112,896
1,633,520
13,590390,200
15,815
4,452,428
66,744,908

39,325,588
7,596,939
2,898,695
14,223,768
1,903,976
16,090410,502
14,1656,566,001
72,955,729

14,854,307
1,198,289
2,228,446
1,537,674
19,818,717
86,563,626

18,254,657
958,033
2,331,956
1,644,227
23,188,874
96,144,603

8,682,976
6,367,844
38,605,783(419,311)
53,237,293

8,682,976
6,367,844
45,286,878(419,598)
59,918,101(63,296)
84,867
21,57065,74853,324,613
139,888,239

86,407
101,414
187,82173,06160,178,984
156,323,588

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017(2) Consolidated statement of income and comprehensive income
Consolidated statement of income(Thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses
Promotion expenses
Salaries, allowances and bonuses
Provision of allowance for doubtful accounts
Provision for bonuses
Provision for directors’ bonuses
Retirement benefit expenses
Provision for reward obligations
Legal and employee benefits expenses
Correspondence and transportation expenses
Lease expenses
Rent expenses
Depreciation expenses
Amortization of goodwill
Taxes
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gains on investments in partnership
Commissions received
Real estate rental revenue
Gains on donations of fixed assets
Consignment income
Technical advisory fee
Co-sponsor fee
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expenses
Losses on sales of accounts receivables
Real estate rental expenses
Provision of allowance for doubtful accounts
Other non-operating expenses
Total non-operating expenses
Ordinary income-7-

Previous fiscal year
(May 1, 2015
to April 30, 2016)
234,843,598
196,308,586
38,535,012

Current fiscal year
(May 1, 2016
to April 30, 2017)248,110,130
206,017,329
42,092,801

1,934,023
855,089
4,570,315
299,254
403,044
13,590133,205
387,574
1,363,050
743,216
112,820
3,801,067
1,401,047
1,942,266
1,136,754
4,819,514
23,915,836
14,619,175

2,494,327
1,413,588
5,081,376–
546,890
16,090128,970
407,488
1,643,624
810,625
95,531
4,161,213
1,579,712
2,539,843
1,133,805
5,476,245
27,529,333
14,563,467

58,70335,693143,030
72,242
186,420
24,569189,507
63,960157,022
221,929
1,153,078

68,12340,46663,542
44,106
193,701
8,914
149,944
62,765–
299,773
931,338

96,20978,56287,450282,600
69,413
614,235
15,158,018

143,788
67,20589,465–
113,733
414,192
15,080,613

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017
(Thousand yen)Previous fiscal year
(May 1, 2015
to April 30, 2016)
Extraordinary income
Gains on sales of fixed assets
Gains on sales of investments in securities
Compensation income
Gain on transfer of business
Penalty income
Gain on bargain purchase
Surrender value of insurance
Other extraordinary income
Total extraordinary income
Extraordinary losses
Losses on disposal and sales of fixed assets
Losses on devaluation of investments in securities
Impairment losses on fixed assets
Directors’ retirement benefits
Bad debts expenses
Other extraordinary losses
Total extraordinary losses
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-8-

Current fiscal year
(May 1, 2016
to April 30, 2017)24,263–
20,197–
68,19658,87913,2585,307
190,101

11,236
264,703
23,09932,295––63,97759,887455,200

409,09012
856,753
8,800–
123,880
1,398,537
13,949,582
6,698,519(710,547)
5,987,972
7,961,609
44,491
7,917,117

488,814–453,942
11,481
216,400
57,6181,228,257
14,307,556
6,040,238
310,606
6,350,844
7,956,712
7,312
7,949,399

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017

Consolidated statement of comprehensive income

ProfitOther comprehensive income
Unrealized holding gains (losses) on securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income (loss)
Total comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests-9-

Previous fiscal year
(May 1, 2015
to April 30, 2016)
7,961,609(Thousand yen)
Current fiscal year
(May 1, 2016
to April 30, 2017)
7,956,712(290,358)
160,077(130,280)
7,831,328
7,786,836

149,703
16,546
166,250
8,122,962
8,115,650

44,491

7,312

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017(3) Consolidated statement of changes in net assets
Previous fiscal year (May 1, 2015 to April 30, 2016)(Thousand yen)
Shareholders’ equity
Common stock
Balance at the beginning ofcurrent year

Capital surplus

8,682,976

Retained earnings

7,872,970

Total shareholders’equityTreasury stock

31,639,894(419,311)

47,776,529

Net changes during the year
Cash dividends paid

(951,228)(951,228)

Profit attributable toowners of parent

7,917,117

7,917,117

Change in ownershipinterest of parent due totransactions with
non-controlling interest(1,505,125)(1,505,125)

Acquisition of treasurystock
Net change in items otherthan shareholders’ equity
Total changes during theyear
Balance at the end ofcurrent year–

(1,505,125)

6,965,888–

5,460,763

8,682,976

6,367,844

38,605,783(419,311)

53,237,293

Accumulated other comprehensive income
Unrealized holding gains(losses) on securities
Balance at the beginning ofcurrent year

Remeasurements ofdefined benefit plans

227,061(75,210)

Total accumulated othercomprehensive income(loss)

Non-controllinginterests

151,851

118,166

Total net
assets48,046,547

Net changes during theyear
Cash dividends paid

(951,228)

Profit attributable toowners of parent

7,917,117

Change in ownershipinterest of parent due totransactions with
non-controlling interest(1,505,125)

Acquisition of treasurystock
Net change in items otherthan shareholders’ equity(290,358)

160,077(130,280)(52,417)(182,698)

Total changes during theyear(290,358)

160,077(130,280)(52,417)

5,278,065

Balance at the end ofcurrent year

(63,296)

84,867

21,57065,74853,324,613- 10 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017

Current fiscal year (May 1, 2016 to April 30, 2017)(Thousand yen)
Shareholders’ equity
Common stock
Balance at the beginning ofcurrent year

Capital surplus

8,682,976

Retained earnings

6,367,844

Total shareholders’equityTreasury stock

38,605,783(419,311)

53,237,293

Net changes during the year
Cash dividends paid

(1,268,304)(1,268,304)

Profit attributable toowners of parent

7,949,399

7,949,399

Change in ownershipinterest of parent due totransactions with
non-controlling interest
Acquisition of treasury
stock

(286)

(286)

Net change in items otherthan shareholders’ equity
Total changes during theyear
Balance at the end ofcurrent year––

6,681,094(286)

6,680,808

8,682,976

6,367,844

45,286,878(419,598)

59,918,101

Accumulated other comprehensive income
Unrealized holding gains(losses) on securities
Balance at the beginning ofcurrent year

Remeasurements ofdefined benefit plans(63,296)

84,867

Total accumulated othercomprehensive income(loss)

Non-controllinginterests

21,57065,748

Total net
assets53,324,613

Net changes during theyear
Cash dividends paid

(1,268,304)

Profit attributable toowners of parent

7,949,399

Change in ownershipinterest of parent due totransactions with
non-controlling interest
Acquisition of treasurystock
Net change in items otherthan shareholders’ equity(286)
149,703

16,546

166,250

7,312

173,563

Total changes during theyear

149,703

16,546

166,2507,312

6,854,371

Balance at the end ofcurrent year

86,407

101,414

187,82173,06160,178,984- 11 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017(4) Consolidated statement of cash flows(Thousand yen)Previous fiscal year
(May 1, 2015
to April 30, 2016)
Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Amortization of goodwill
Impairment losses on fixed assets
Impairment losses on investments in securities(Decrease) increase in allowance for doubtful accounts
Increase in reserve for reward obligations
Increase in defined benefit liability
Gain on transfer of business
Decrease in provision for sales returns
Increase in allowance for bonuses to employees
Increase in allowance for bonuses to directors
Interest and dividend income
Interest expenses
Gains on investments in partnerships
Gains on donations of property, plant and equipment
Gain on bargain purchase(Losses) gains on sales of investments in securities
Losses on disposal and sales of fixed assets
Decrease in accounts receivable
Bad debts expenses
Decrease in inventories
Decrease (increase) in other assets
Increase in other accounts receivable(Decrease) increase in accounts payable
Increase in other liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities- 12 -

13,949,582
3,259,367
2,938,058
856,75312
565,851
48,750164,816–(3,245)
104,808
1,839(94,396)
96,209(143,030)(24,569)(58,879)475
384,827
236,989–495,261(194,962)(600,967)
3,031,266
917,973
25,932,792
93,113(94,235)(4,579,309)
21,352,361

Current fiscal year
(May 1, 2016
to April 30, 2017)
14,307,556
3,687,357
3,654,962
453,942–(15,952)
20,302
233,656(32,295)(1,649)197,498
2,500(108,590)
143,788(52,238)(8,914)–(263,332)
477,577
5,369,379
216,400
449,770
2,536,585(2,820,742)(4,340,024)
2,028,050
26,135,588
112,496(143,784)(7,695,211)
18,409,088

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017
(Thousand yen)Previous fiscal year
(May 1, 2015
to April 30, 2016)
Cash flows from investing activities
Payments for purchases of property, plant andequipment
Proceeds from sales of property, plant and equipment
Payments for purchases of investments in securities
Proceeds from sales of investments in securities
Purchases of subsidiaries’ shares resulting in obtaining
controls
Payments for loans receivable
Proceeds from collections of loans receivable
Payments for investments in capital
Proceeds from returns of investments in capital
Payments for purchase of intangible fixed assets
Proceeds from sales of intangible assets
Decrease (increase) in other investments
Proceeds from withdrawal of time deposits
Payments for time deposits
Net cash used in investing activities
Cash flows from financing activities
Net decrease in short-term loans payable
Proceeds from long-term debts
Repayments of long-term debts
Repayments of lease obligations
Payments for purchase of treasury stock
Purchases of subsidiaries’ shares not resulting inchange in obtaining controls
Cash dividends paid
Net cash provided by financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year

- 13 -

Current fiscal year
(May 1, 2016
to April 30, 2017)(7,407,367)(2,415,960)

709,572(10,981)
260,010513,663(52,883)
869,859(10,954,789)(9,697,743)(960,413)
74,392(10)
16,630(2,509,624)
66,895(298,512)
223,093(86,192)(20,877,296)(349,207)
448,824(10)
25,399(1,032,219)
38,373
13,353534,838(79,580)(11,183,292)(2,085,963)
12,987,518(5,619,816)(710,933)–(391,080)
11,729,595(9,217,451)(735,691)(286)(1,591,560)–(951,228)
2,028,017
2,503,082
19,389,097
21,892,179(1,268,304)
116,780
7,342,577
21,892,179
29,234,757

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017

(Segment Information, etc.)
a. Segment information
1. Description of the reportable segments
The Company’s reportable segments consist of those of its components for which it is possible to obtainseparate financial information that is examined by its Board of Directors on a regular basis for the purpose of
deciding on the allocation of corporate resources and assessing business performance.
The Group’s business comprises three units that together represent its main business units, namely,
dispensing pharmacy business that consists of operation of dispensing pharmacies, selling of generic drugs,
recruiting and consulting services, and drug and cosmetic store business that consists of the management ofurban and suburban drug and cosmetic stores as well as other businesses that consist mainly of real-estateleasing services. The formulation and examination of business strategy is conducted individually for eachbusiness.
Accordingly, the reportable segments of the Group are composed of three units, namely, dispensing
pharmacy business, drug and cosmetic store business and other businesses.

2. Methods to determine the amounts of net sales, income or losses, assets, liabilities and other items byreportable segment
The methods used for accounting for the reportable business segments are generally similar to thosedescribed in the Basic Important Matters for Preparation of Consolidated Financial Statements.
The income figures for the reportable segments are expressed at the ordinary income level. Intersegment
sales and transfers are based on prevailing market prices.

- 14 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017

3. Sales, income (loss), assets, liabilities and other items for each reportable segment
I. Previous fiscal year (May 1, 2015 to April 30, 2016)(Thousand yen)
Reportable segments
Adjustments(Note) 1

Consolidated(Note) 2

234,843,598–

234,843,598

350,027

350,027(350,027)–

20,884,332

3,299,650

235,193,626(350,027)

234,843,598

19,219,890(459,170)(1,142,947)

17,617,772(2,459,754)

15,158,018

139,120,411

7,384,342

9,882,767

156,387,520(16,499,281)

139,888,239

Depreciation
and amortization

2,070,927

262,688376,5632,710,179

171,3032,881,482

Amortization of
goodwill

2,921,958–

16,1002,938,058–

2,938,058

Impairment losses

520,333

151,897–672,230

184,523856,753

Increase of tangible
and intangible assets

5,607,150

1,108,118

3,353,108

10,068,377

322,432

10,390,810

Dispensing
pharmacy

Drug andcosmetic
store

Other

Sales to third parties

211,009,642

20,884,332

2,949,622

Intersegment sales––

Total sales

211,009,642

Segment income (loss)
Segment assets

Total

Sales

Other

Notes:

1. Segment income (loss) in “Adjustments” totaling (¥2,459,754 thousand) includes ¥2,897,457 thousand in overall
group expenses, (¥356,230 thousand) in (income) losses that may not be allocated to the reporting segments, and(¥81,473 thousand) in elimination due to intersegment transactions.
The overall group expenses consist mainly of expenses associated with the administrative divisions of the parent
company, such as general affairs and accounting divisions.
Segment assets in “Adjustments” totaling (¥16,499,281 thousand) consist mainly of assets associated with theadministrative divisions of the parent company and the difference in elimination of intersegment transactions.
2. Segment income is adjusted with the ordinary income of consolidated statements of income.

- 15 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017

II. Current fiscal year (May 1, 2016 to April 30, 2017)(Thousand yen)
Reportable segments
Adjustments(Note) 1

Consolidated(Note) 2

248,110,130–

248,110,130

379,620379,620(379,620)–

21,383,183

5,305,020

248,489,751(379,620)

248,110,130

19,110,100(866,490)(1,496,079)

16,747,531(1,666,918)

15,080,613

148,765,029

10,118,204

11,054,416

169,937,650(13,614,062)

156,323,588

Depreciation
and amortization

2,299,471

357,869

400,910

3,058,251

201,916

3,260,168

Amortization of
goodwill

3,625,454–

29,5083,654,962–

3,654,962

Impairment losses

368,333

85,609–453,942–453,942

Increase of tangible
and intangible assets

2,620,583

907,174

381,086

3,908,844

26,1293,934,973

Dispensing
pharmacy

Drug andcosmetic
store

Other

Sales to third parties

221,801,546

21,383,183

4,925,399

Intersegment sales––

Total sales

221,801,546

Segment income (loss)
Segment assets

Total

Sales

Other

Notes:

1. Segment income (loss) in “Adjustments” totaling (¥1,666,918 thousand) includes ¥3,326,575 thousand in overall
group expenses, (¥1,645,795 thousand) in (income) losses that may not be allocated to the reporting segments,and (¥13,861 thousand) in elimination due to intersegment transactions.
The overall group expenses consist mainly of expenses associated with the administrative divisions of the parent
company, such as general affairs and accounting divisions.
Segment assets in “Adjustments” totaling (¥13,614,062 thousand) consist mainly of assets associated with theadministrative divisions of the parent company and the difference in elimination of intersegment transactions.
2. Segment income is adjusted with the ordinary income of consolidated statements of income.

- 16 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017b. Related information
Previous fiscal year (May 1, 2015 to April 30, 2016)
1. Information by product and service
This disclosure has been omitted because the same information is disclosed under Segment Information.
2. Information by region(1) Net sales
This disclosure has been omitted as the Group’s sales to external customers in Japan accounted for morethan 90% of sales on the consolidated statement of income.
(2) Property, plant and equipment
This disclosure has been omitted because the Group had no property, plant and equipment locatedoutside Japan at the balance sheet date.
Current fiscal year (May 1, 2016 to April 30, 2017)
1. Information by product and service
This disclosure has been omitted because the same information is disclosed under Segment Information.
2. Information by region(1) Net sales
This disclosure has been omitted as the Group’s sales to external customers in Japan accounted for morethan 90% of sales on the consolidated statement of income.
(2) Property, plant and equipment
This disclosure has been omitted because the Group had no property, plant and equipment locatedoutside Japan at the balance sheet date.

c. Information regarding impairment losses of fixed assets for each reported segment
Previous fiscal year (May 1, 2015 to April 30, 2016)
This disclosure has been omitted because the same information is disclosed under Segment Information.

Current fiscal year (May 1, 2016 to April 30, 2017)
This disclosure has been omitted because the same information is disclosed under Segment Information.

- 17 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2017

d. Information about goodwill amortization amount and year-end balance for each reportable segment
Previous fiscal year (May 1, 2015 to April 30, 2016)(Thousand yen)
Dispensing
pharmacybusiness

Drug andcosmetic store
business

Amortization of current fiscal year

2,921,958

Balance at the end of current fiscal year

33,111,221

Otherbusinesses

Corporate /Eliminations–

16,100–2,938,058–

226,150–

33,337,372

Total

Current fiscal year (May 1, 2016 to April 30, 2017)(Thousand yen)
Dispensing
pharmacybusiness

Drug andcosmetic store
business

Amortization of current fiscal year

3,625,454

Balance at the end of current fiscal year

40,719,410

Otherbusinesses

Corporate /Eliminations–

29,508–3,654,962–

220,038–

40,939,448

Total

e. Information about gains on bargain purchase for each reported segment
Previous fiscal year (May 1, 2015 to April 30, 2016)
Effective from the fiscal year under review, Kyowa Pharmacy Co., Ltd. in the dispensing pharmacy business
was included in the scope of consolidation following the acquisition of shares. In the fiscal year under review,gain on bargain purchase arising from this acquisition totaled ¥58,879 thousand.

Current fiscal year (May 1, 2016 to April 30, 2017)
There are no applicable matters to be reported.

- 18 -