FY4/17 2Q
Supplementary Materials

November 25, 2016

１．Consolidated Results■Year-on-Year
FY4/16 2Q
results

FY4/17 2Q
results

YoYchange(¥ million)
YoYchange(%)

Net sales

106,924

116,844+9,920+9.3

Gross profit

16,71318,365+1,652+9.9% of net sales

15.6

15.7

10,812

13,315+2,503

+23.2

10.1

11.4

5,901

5,049(852)(14.4)

5.5

4.3

6,084

5,346(738)(12.1)

5.7

4.6

3,2952,855(440)(13.4)

3.1

2.4

103.9390.07(13.86)(13.3)

SG&A expenses% of net sales

Operating income% of net sales

Ordinary income% of net sales

Profit attributableto owners of parent% of net sales

Earnings pershare(¥)

Figures in the table are rounded down

■Vs Plan
FY4/17 2Q
plan

FY4/17 2Q
results

Vs planchange(¥ million)
Vs planchange(%)

Net sales

126,000

116,844(9,156)(7.3)

Gross profit% of net sales

19,95018,365(1,585)

(7.9)

15.8

15.7

SG&A expenses% of net sales

13,80013,315(485)

(3.5)

11.0

11.4

Operating income% of net sales

6,150

5,049

(1,101)(17.9)

4.94.3

Ordinary income% of net sales

6,350

5,346(1,004)(15.8)

5.0

4.6

3,470

2,855(615)(17.7)

2.8

2.4

109.4490.07(19.37)(17.7)

Profit attributableto owners of parent% of net sales
Earnings pershare(¥)

Figures in the table are rounded down

２. Segment Information（Dispensing Pharmacy Business）■Year-on-Year
FY4/16 2Q
results

FY4/17 2Q
results

YoYchange(¥ million)
YoYchange(%)

Net sales

95,940104,297+8,357+8.7

Gross profit

13,102

13,620+518+4.0% of net sales

13.713.1

5,165

6,401+1,236

+23.9

5.4

6.1

7,937

7,218(719)

(9.1)

8.3

6.9

8,193

7,494(699)

(8.5)

8.5

7.2

SG&A expenses% of net sales

Operating income% of net sales

Segment income% of net sales

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the quarterly consolidated statements of income■Vs Plan
FY4/17 2Q
plan

FY4/17 2Q
results

Vs planchange(¥ million)
Vs planchange(%)

Net sales

112,280

104,297(7,983)(7.1)

Gross profit

14,63013,620(1,010)(6.9)% of net sales

13.0

13.1

6,180

6,401+221+3.6

5.5

6.1

8,450

7,218(1,232)(14.6)

7.5

6.9

8,600

7,494(1,106)(12.9)

7.7

7.2

SG&A expenses% of net sales

Operating income% of net sales

Segment income% of net sales

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the quarterly consolidated statements of income

3. Segment Information（Drug and Cosmetic Store Business）■Year-on-Year
FY4/16 2Q
results

YoYchange

FY4/17 2Q
results(¥ million)
YoYchange(%)

Net sales

10,107

10,288+181+1.8

Gross profit

3,484

3,723+239+6.9% of net sales

34.5

36.2

3,859

4,136+277+7.2

38.2

40.2

(375)

(412)

(37)

---

(183)

(384)

(201)

‐--

SG&A expenses% of net sales

Operating income% of net sales

Segment income% of net sales

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the quarterly consolidated statements of income■Vs Plan
FY4/17 2Q
plan

FY4/17 2Q
results

Vs planchange(¥ million)
Vs planchange(%)

Net sales

10,84010,288(552)(5.1)

Gross profit

3,900

3,723(177)(4.5)% of net sales

36.0

36.2

4,210

4,136(74)

(1.8)

38.8

40.2(310)

(412)

(102)

---

(250)

(384)

(134)

---

SG&A expenses% of net sales

Operating income% of net sales

Segment income% of net sales

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the quarterly consolidated statements of income

4. Sales Verification■Dispensing Pharmacy (YoY）
Net sales
Same store (719)Store openings in theprevious year (141)

Total (917)（%）（%）■Dispensing Pharmacy（Vs Plan）
Average
Average
Prescription
Prescription
Net salesprescription
prescription
volumevolume
price
price

(3.6)

(0.9)

(2.7)

Same store (719)

(6.2)

(0.9)

(5.3)

+893.1+783.8+10.7

Store openings in theprevious year (141)

(3.5)

(1.1)

(2.8)

+9.5

+14.8

(4.7)

Total (917)

(5.8)

(1.2)

(4.8)

■Drug and Cosmetic Store（YoY）
Net sales
Same store (45)Store openings in theprevious year (5)Total (51)（%） ■Drug and Cosmetic Store (Vs Plan）

Average
Number ofspending per
customers
customer

Net sales（%）

Average
Number ofspending per
customers
customer

(2.8)

(2.1)

(0.7)

Same store (45)

(4.2)

(5.3)

+1.2

+171.3+151.7+7.8

Store openings in theprevious year (5)

+0.4

(7.1)

+8.0

+1.8

(2.1)

+3.9

Total (51)

(5.1)

(6.9)

+2.0

5. Consolidated Balance Sheet■Assets(¥ million)
End-FY4/16 2Q

End-FY4/16

End-FY4/17 2Q

Change30,806

22,64723,012

+365

9,199

12,385

7,214(5,171)

12,01710,984

11,823+839

61,10256,59353,295(3,298)

14,09914,694

14,680(14)

Land

8,186

9,537

9,525(12)Lease assets

1,410

1,352

1,285(67)

26,111

28,15327,749(404)

22

13

12(1)

Total intangible fixed assets

28,46135,586

36,113+527

Investments in securities

2,818

2,677

2,565(112)

Deferred tax assets

1,231

2,038

2,163+125

Cash on hand and in banks
Notes and accounts receivable
Inventories
Total current assets
Buildings and structures,net

Total property,plant andequipment
Lease assets

Deposits and guarantees

9,769

10,013

10,287+274

Total investments and otherassets

18,044

19,555

19,688+133

Total fixed assets

72,61883,29483,552+258

133,721

139,888

136,847(3,041)

Total assets
Figures in the table are rounded down

Change(¥):End-FY4/17 2Q compared with end-FY4/16

Capital expenditures(Purchases of property, plant and equipment and intangible fixed assets + Deposits andguarantees) totaled ¥2,365million■Liabilities and Net Assets(¥ million)
End-FY4/16 2Q

End-FY4/16

End-FY4/17 2Q

ChangeAccounts payable

36,27939,987

37,693(2,294)

Short-term debt

17,607

5,690

7,584

+1,894

Lease obligations

666

668

641

(27)

72,747

66,74464,707(2,037)Long-term debt

6,150

14,854

12,138(2,716)

Lease obligations

1,274

1,198

1,087

(111)

Total long-term liabilities

10,587

19,81817,177(2,641)

Total liabilities

83,33586,56381,885(4,678)

Common stock

8,682

8,682

8,682

‐

Capital surplus

7,872

6,367

6,367

‐

33,98438,60540,193+1,588

Total shareholders’ equity

50,12053,23754,824+1,587

Total net assets

50,38553,32454,961+1,637

Total liabilities and net assets

133,721

139,888

136,847(3,041)Figures in the table are rounded down

Change(¥):End-FY4/17 2Q compared with end-FY4/16

Total current liabilities

Retained earnings

6. Consolidated Statements of Cash Flows(¥ million)
End-FY4/16 2Q

End-FY4/17 2Q

9,221

6,090

(3,131)

Profit before income taxes

5,825

5,298(527)

Depreciation and amortization

1,417

1,753+336

Amortization of goodwill

1,339

1,660+321(75)5,733+5,808(1,515)

(651)

+864

Increase in other accounts receivable(521)(1,525)(1,004)

Increase (decrease) in accounts payable

3,806(2,918)(6,724)(6,117)(3,053)+3,064(4,427)(1,544)+2,883Purchase of subsidiaries’ shares resulting in
obtaining controls(1,131)(2,293)(1,162)

Net cash (used in) provided by financing
activities

8,157(2,616)(10,773)

Net increase (decrease) in cash and cash
equivalents

11,261

420(10,841)

Cash and cash equivalents at end of theperiod

30,65022,312(8,338)Net cash provided by operating activities

Increase (decrease) in accounts receivable
Increase in inventories

Net cash used in investing activities
Payments for purchases of property, plant andequipment and intangible fixed assets

Figures in the table are rounded down

Change7. FY4/17 Plan (Consolidated)(¥ million)
YoYchange (%)

FY4/15
results

FY4/16
results

FY4/17plan

YoYchangeNet sales

187,904

234,843

265,000+30,157+12.8

Gross profit% of net sales

28,961

38,53544,200+5,665

+14.7

15.4

16.4

16.7

SG&A expenses% of net sales

17,50923,91527,900+3,985+16.7

9.3

10.2

10.5

Operating income% of net sales

11,452

14,61916,300+1,681+11.5

6.1

6.2

6.2

Ordinary income% of net sales

11,69715,15816,700+1,542

+10.2

6.2

6.5

6.3

6,197

7,917

9,000+1,083

+13.7

3.3

3.4

3.4

Earnings pershare(¥)

195.45249.69283.84+34.15+13.7

Annual dividend (¥)

30.00

40.00

50.00

+10.00+25.0

Profit attributableto owners of parent% of net sales

Figures in the table are rounded down

YoY change(¥):FY4/17 plan compared with FY4/16 results

YoY change (%):FY4/17 plan compared with FY4/16 results
On October 1, 2014, the Company conducted a 2-for-1 stock split of common shares. Earnings per shareis calculated by deeming stock splits to have occurred at the beginning of the previous fiscal year.

8. Transition of Store Openings■Number of Store Openings in Dispensing Pharmacy Business
FY4/10 FY4/11 FY4/12 FY4/13 FY4/14 FY4/15 FY4/16

FY4/172Q

Organic

2118273836403217M&A335283826119110

30Total397448494560616754881917

Total number of stores includes ‎temporarily closed stores from FY4/11.

■Number of store openings in Drug and Cosmetic Store Business
FY4/10 FY4/11 FY4/12 FY4/13 FY4/14 FY4/15 FY4/16

FY4/172QOrganic

56773351Total

49

53

56

61

59

56

5251

Inquiries related to this presentation should be addressed toAIN HOLDINGS INC.
Corporate Planning Division
TEL(81)11-814-0010
FAX(81)11-814-5550
http://www.ainj.co.jp/This document may not be reproduced or distributed to any third party withoutprior approval of AIN HOLDINGS INC. This document has been prepared for
information purpose only and does not form part of a solicitation to sell orpurchase any securities. Information contained herein may be changed orrevised without prior notice. This document may contain forecasting statements
as to future results of operations. No forecast statement can be guaranteed andactual results of operations may differ from those projected.