Summary of Financial Statements for Fiscal Year Ended April 2021
【Japan GAAP】(Consolidated)

June 4, 2021
AIN HOLDINGS INC.
First Section of Tokyo Stock Exchange and Sapporo Securities Exchange
9627
URL: https://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 29, 2021
Date of scheduled payment of dividends:
July 30, 2021
Date of filing securities report:
July 30, 2021
Supplementary documents for this summary of financial statements: Yes (Supplementary materials are disclosed on theName of listed company:
Exchange listed on:
Code number:
Representative:
Inquiries:

Company’s website appropriately as the financial
statements.)

Explanation meeting for financial results:

Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen.)

1. Consolidated results for the fiscal year ended April 2021 (from May 1, 2020 to April 30, 2021)(Percentage figures show year-on-year changes.)(1) Consolidated operating results
Net salesYear ended April 30, 2021
Year ended April 30, 2020

Operating income

Profit attributable toowners of parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

297,305
292,615

1.6
6.2

10,932
16,068(32.0)–

12,64916,822(24.8)
1.1

6,697
9,179

(27.0)
1.7

Earnings per
share

Diluted earnings
per share(Note) Comprehensive income:Year ended April 30, 2021: ¥6,783 million (-24.9%)
Year ended April 30, 2020: ¥9,030 million (+0.8%)

Yen

Yen

189.04259.11

Year ended April 30, 2021
Year ended April 30, 2020

Return on equity%––

Operatingincome to net
sales

Ordinary income
to total assets
%

5.9
8.5

6.4
8.8

%

3.7
5.5

(Reference) Share of profit of entities accounted for using equity method: Year ended April 30, 2021: ¥ 10 million, Year endedApril 30, 2020: ¥ – million(2) Consolidated financial position
Total assets

Net assets

Million yen

Million yen

203,662
193,451

As of April 30, 2021
As of April 30, 2020

(Reference) Equity capital: As of April 30, 2021: ¥115,758 million

Shareholders’ equity
ratio

Net assets per share

56.8
57.3

3,267.49
3,130.77%

115,837
111,003

As of April 30, 2020: ¥110,915 million(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Million yen
Year ended April 30, 2020

2. Dividends

Year ended April 30, 2020
Year ended April 30, 2021
Year ending April 30, 2022
(forecast)

Cash flows fromfinancing activities

Million yen

14,92817,747

Year ended April 30, 2021

Yen

Million yen(9,493)(11,474)

Cash and cash
equivalents
at end of year

Million yen

3,643(7,837)

Dividends per share
1Q-end2Q-end3Q-endYear-end

Annual

Yen

–
–

Yen

0.00
0.00

Yen

–
–

Yen

55.00
55.00

Yen

55.00
55.00

–

0.00

–

55.00

55.00

Total
dividends(annual)Million yen

1,948
1,948

55,00945,931Dividends
payout ratio

Dividends on
net assets

21.2
29.1

1.8
1.7

(consolidated)%23.5(consolidated)%3. Consolidated financial forecast for the fiscal year ending April 30, 2022 (from May 1, 2021 to April 30, 2022)
Net salesFirst half
Full year

Operating income

Million yen%

Million yen%

147,900
315,000

1.8
6.0

5,300
15,00035.0
37.2(Percentage figures show year-on-year changes.)
Earnings
Ordinary income
Net income
per share
Million yen%
Million yen
%
Yen

5,600
15,500

24.0
22.5

2,780
8,300

5.7
23.9

78.47
234.28* 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, 2021
stock):
2) Number of shares held in
As of April 30, 2021
treasury:
3) Average number of
Fiscal year endedApril 30, 2021
shares outstanding:

35,428,212 shares As of April 30, 2020

35,428,212 shares

891 shares As of April 30, 2020

728 sharesFiscal year ended

35,427,408 shares April 30, 2020

35,427,484 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(Caution concerning forward-looking statements)
The above forecasts are calculated based on the information available as of the publication date of this material, and actual financial
results may vary due to change in future economic conditions and others.

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021
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 .................................................................................................................................................................. 5(5) Risk information related to the COVID-19 outbreak ......................................................................................................... 5
2. Basic Stance on Selection of Accounting Standards ............................................................................................................. 5
3. Consolidated Financial Statements ....................................................................................................................................... 6(1) Consolidated balance sheet............................................................................................................................................. 6(2) Consolidated statement of income and comprehensive income ...................................................................................... 8
Consolidated statement of income ................................................................................................................................... 8
Consolidated statement of comprehensive income........................................................................................................ 10(3) Consolidated statement of changes in net assets ........................................................................................................... 11(4) Consolidated statement of cash flows............................................................................................................................ 13(5) Notes to consolidated statements .................................................................................................................................. 15(Notes on the premise of a going concern) ..................................................................................................................... 15(Matters related to consolidated statements of income) ............................................................................................... 15(Segment information, etc) ............................................................................................................................................. 15(Per-share information) ................................................................................................................................................... 19(Important subsequent events) ....................................................................................................................................... 19-1-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

1. Operating Results and Other(1) Overview of operating results for the current fiscal year
During the fiscal year ended April 30, 2021, conditions in the Japanese economy remained challenging due
to the impact of the COVID-19 pandemic. There was also continued uncertainty in the economic outlook.
In this economic environment, the AIN HOLDINGS Group (the Group) worked to expand its business andincrease earnings. Specifically, the Group opened new dispensing pharmacies, used M&A to grow its operations
and developed its cosmetic and drug store business.
In pharmacy and store operations, the Group rigorously enforced measures to prevent infection to reassure
patients and customers, and worked to ensure the continued provision of healthcare and retail services byimplementing strict measures to protect employees from infection.
In addition, in October 2020, the Group established a Sustainability Committee, and in December 2020
identified key sustainability issues that need to be tackled by the Group (materiality) in order to achieve thesustainable development goals (SDGs). Through businesses that support human health and beauty, the Groupwill work to achieve sustainability management with the aim of generating sustainable growth and creating social,environmental and economic value.
For the fiscal year under review, net sales rose 1.6% year on year to ¥297,305 million, operating income
decreased 32.0% to ¥10,932 million, ordinary income decreased 24.8% to ¥12,649 million and profit attributableto owners of parent decreased 27.0% year on year to ¥6,697 million.
(Dispensing pharmacy business)
In September 2020, under partial revisions to the Act on Securing Quality, Efficacy and Safety of Products
Including Pharmaceuticals and Medical Devices (Revised Pharmaceuticals and Medical Devices Act), which arebeing implemented incrementally, dispensing pharmacies were given approval to provide online pharmaceuticaltreatment guidance nationwide in accordance with certain rules. In line with this change, the Group establisheda system to provide online pharmaceutical treatment guidance via all its dispensing pharmacies nationwide. In
addition, we actively conducted various field trials to prepare for an expected increase in the ways that patients
receive medicines. The trials included using drones and automated shipping robots to deliver medicines, sameday delivery schemes, and home delivery storage lockers.
To ensure our pharmacists and dispensing pharmacies fulfill their primary care role, the Group continues toreinforce pharmaceutical management and guidance based on the integrated and continuous management ofdrug-related information through cooperation with local medical service providers, the use of patient medication
notebooks and other means. The Group is also working to help patients access medical services in their local
community with peace of mind by providing online pharmaceutical treatment guidance and home-based
dispensing and by training specialist dispensing pharmacists.
In business development, the Group is pushing ahead with further business expansion and measures toimprove the efficiency of pharmacy operations, including actively opening large pharmacies and tightening thecriteria for M&A deals, as well as using its pharmacy opening strategy to withdraw from small-scale locations.
Sales and profits declined year on year, reflecting an increase in the duration of prescriptions during the
COVID-19 pandemic, which led to a rise in the average unit price per prescription but a decline in the numberof prescriptions. The closure and business transfer of 64 pharmacies in the previous fiscal year to improve theefficiency of pharmacy operations also had an impact. However, the number of prescriptions is now recovering.
As a result, for the fiscal year under review, the dispensing pharmacy business reported sales of ¥263,095
million, down 0.2% year on year, and segment income of ¥20,947 million, up 0.5%.
During the fiscal year, the Group opened a total of 29 dispensing pharmacies, including those acquired
through M&A deals, and closed 18 dispensing pharmacies and sold 34 as part of an overhaul of pharmacy
operations, resulting in a total of 1,065.

-2-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

(Cosmetic and drug store business)
The cosmetic and drug store business continued to face a challenging market environment due to the impactof the COVID-19 pandemic and other factors.
The Group continued to open ainz & tulpe cosmetic and drug stores, as well as strategically develop retaildisplays tailored to the characteristics of each store. Following the release of the official ainz & tulpe app, theGroup launched the official AINZ & TULPE WEBSTORE in May 2020 to improve convenience and lift service
levels for customers.
However, many stores reduced their opening hours or closed temporarily to prevent the spread of COVID-19
infections. As a result, the cosmetic and drug store business reported a decline in sales of 21.4% year on yearto ¥19,419 million and a segment loss of ¥1,999 million, compared with segment income of ¥262 million in theprevious fiscal year.
During the same period, the Group opened 11 ainz & tulpe stores and closed five stores, resulting in a totalof 69 cosmetic and drug stores at the end of the fiscal year.
(Other businesses)
Net sales from other businesses increased 248.2% year on year to ¥14,894 million, mainly reflecting theacquisition of retail shop business in March 2020, and segment loss was ¥721 million compared with the lossof ¥342 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 increased ¥10,211 million from the end of the previous
fiscal year to ¥203,662 million. That mainly reflected declines for goodwill and merchandise, outweighed byincreases for cash on hand and in banks and for deposits and guarantees.
The balance of liabilities at the end of the fiscal year under review increased by ¥5,378 million to ¥87,825
million.
The balance of short- term and long-term debts increased by ¥5,892 million to ¥11,967 million.
Total net assets increased by ¥4,833 million to ¥115,837 million and the shareholders’ equity ratio decreased
0.5 percentage points to 56.8%.

(3) Overview of cash flows for the current fiscal year
In the fiscal year under review, cash on hand and in banks (“cash”) increased ¥9,078 million year on year to¥55,009 million.
Cash flows from each category and their relevant factors are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥14,928 million, compared with net cash provided of ¥17,747
million in the previous fiscal year.
The main items that were positive for cash flow were income before income taxes of ¥11,767 million, as well
as depreciation and amortization of ¥4,243 million and amortization of goodwill of ¥4,436 million related tobusiness expansion through new store openings and M&A.
The main item negative for cash flow was income taxes paid of ¥6,595 million.
(Cash flows from investing activities)
Net cash used in investing activities was ¥9,493 million, compared with net cash used of ¥11,474 million in-3-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

the previous fiscal year.
This mainly reflected payments of ¥997 million for purchases of shares in subsidiaries due to changes in thescope of consolidation related to shares acquired in 8 companies through M&A deals, ¥3,930 million forpurchases of property, plant and equipment related to the opening of new cosmetic and drug stores anddispensing pharmacies, ¥2,219 million for payments of leasehold and guarantee deposits and ¥3,110 million forincrease in other investments.
(Cash flows from financing activities)
Net cash provided by financing activities was ¥3,643 million, compared with net cash used in ¥7,837 million
in the previous fiscal year.
The main items were net proceeds of ¥5,811 million from short-term and long-term debt repayment andproceeds, and ¥1,948 million for cash dividends paid.
Changes in the Group’s cash flow indicators are shown below.
Year ended April
30, 2018

Year ended April
30, 2019

Year ended April
30, 2020

Year ended April
30, 2021

Shareholders’ equity ratio (%)

52.7

54.9

57.3

56.8

Equity ratio based on market value (%)

141.0

165.7

110.4

105.6

Debt redemption term (years)

0.9

0.8

0.4

0.8

Interest coverage ratio (times)

184.5

117.8

276.8

334.7

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-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

(4) Future outlook
In the fiscal year ending April 30, 2022, the pharmacy business will continue to develop new dispensing
pharmacies and actively seek M&A opportunities. In addition, the retail business will work to expand its
operations by continuing to open ainz & tulpe cosmetic and drug stores in prime locations and by implementing
measures to raise brand visibility.
The COVID-19 pandemic is impacting our operations in a number of ways. For example, the dispensing
pharmacy business is seeing a decline in the number of prescriptions due to an increase in prescription duration,
while the retail business has been affected by weaker consumer confidence amid calls for people to stay athome. While those factors are likely to continuing affecting our operations for the remainder of 2021, we expect
the impact to gradually moderate.
Based on that outlook, the Group forecasts net sales for the fiscal year ending April 30, 2022 of ¥315,000
million, up 6.0% year on year, ordinary income of ¥15,500 million, up 22.5%, and profit attributable to owners ofparent of ¥8,300 million, an increase of 23.9%.
At this stage, there are no clear indications of when the COVID-19 pandemic will be contained. If conditions
change dramatically, the Group will revise its forecasts as necessary and disclose them in a timely manner.
(5) Risk information related to the COVID-19 outbreak
Amid the widening COVID-19 outbreak, the duration of prescriptions in the dispensing pharmacy businesshas lengthened due to factors such as limits on medical consultations to prevent the spread of infection. As aresult, the business is likely to see an increase in the average unit price per prescription but a decline in thenumber of prescriptions.
The cosmetic & drug store business has already been affected by a drop in customer footfall due to factors
such as calls for people to stay at home, shorter opening hours and temporary store closures and a contraction
in inbound tourist demand. We anticipate an impact on the Group’s operating results if the current situation
persists or escalates.

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. The Group plans to appropriately address the adoption of International Financial
Reporting Standards (IFRS) while taking into account trends in Japan and overseas.

-5-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

3. Consolidated Financial Statements(1) Consolidated balance sheet

AssetsCurrent assets
Cash on hand and in banks
Notes and accounts receivable
Merchandise
Supplies
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
Deferred assets
Share issuance cost
Total deferred assets
Total assets-6-(Million yen)Previous fiscal year
(As of April 30, 2020)

Current fiscal year
(As of April 30, 2021)

46,321
13,653
15,035
286
208
8,997
3,299
(1)
87,802

55,271
13,47514,018
266
144
9,284
3,936
–
96,39832,388(15,779)
16,60910,960143
10,260(7,098)3,161
30,87432,561(16,290)
16,270
10,390638
10,017(7,087)2,930
30,22942,123
2,792
44,91639,057
3,609
42,666

2,295
554
4,211
111
19,144
5,168(1,644)29,841
105,632

2,697
422
4,415
60
20,3198,198(1,743)34,368107,26415
15
193,451––
203,662

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

Liabilities
Current liabilities
Accounts payable
Short-term debt
Accrued income taxes
Deposits received
Allowance for bonuses to employees
Allowance for bonuses to directors
Reserve for reward obligations
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term debt
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 on securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-7-(Million yen)Previous fiscal year
(As of April 30, 2020)

Current fiscal year
(As of April 30, 2021)

47,187
3,642
3,356
13,094
2,338
16
463
4,600
74,70046,758
3,670
2,157
13,979
2,594
16
461
4,522
74,160

2,432
154
3,124
2,035
7,747
82,447

8,297
37
3,329
2,000
13,66487,82521,89420,50068,758(2)
111,151

21,89420,50073,506(3)
115,899

(77)
(159)
(236)
88
111,003
193,451

(12)
(128)
(141)
78
115,837
203,662

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

(2) Consolidated statement of income and comprehensive income
Consolidated statement of income(Million 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 to emplyees
Provision for bonuses to directors
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
Share of profit of entities accounted for using equity
methodGains on investments in partnership
Commissions received
Real estate rental revenue
Gains on donations of fixed assets
Consignment income
Technical advisory fee
Subsidies for employment adjustment
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-8-

Previous fiscal year
(May 1, 2019
to April 30, 2020)
292,615
245,753
46,861

Current fiscal year
(May 1, 2020
to April 30, 2021)
297,305
251,150
46,155

2,004
1,260
5,560
–
668
16
203
463
2,046
879
81
4,950
766
4,242
1,762
5,885
30,793
16,068

1,998
1,103
7,693
33
902
16
261
461
2,397
894
91
4,708
1,178
4,245
1,490
7,746
35,222
10,932

55
37

38
44

–

10

10
25
368
48
184
64
138
292
1,226

68
18
185
28
193
68
1,182
472
2,308

63
67
134
–
205
472
16,822

44
79
220
182
64
590
12,649AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021
(Million yen)Previous fiscal year
(May 1, 2019
to April 30, 2020)
Extraordinary income
Gains on sales of fixed assets
Gain on transfer of business
Surrender value of insurance
Gain on contribution of securities to retirement benefit
trust
Gain on sales of shares of subsidiaries and associates
Other extraordinary income
Total extraordinary income
Extraordinary losses
Losses on disposal and sales of fixed assets
Impairment losses on fixed assets
Loss on valuation of investment securities
Loss on temporary store closures
Other extraordinary losses
Total extraordinary losses
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of parent-9-

Current fiscal year
(May 1, 2020
to April 30, 2021)

36
496
78

19
408
53

223

–

–
1
835

111
31
624

916
263
218
97
231
1,727
15,930
6,648
81
6,729
9,201
21
9,179

410
804
37
52
202
1,506
11,767
5,251
(172)
5,079
6,687
(9)
6,697

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

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 gain (loss)
Total comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 10 -

Previous fiscal year
(May 1, 2019
to April 30, 2020)
9,201(Million yen)
Current fiscal year
(May 1, 2020
to April 30, 2021)
6,687

(71)
(99)
(170)
9,030
9,008

64
31
95
6,783
6,792

21

(9)

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

(3) Consolidated statement of changes in net assets
Previous fiscal year (May 1, 2019 to April 30, 2020)(Million yen)
Shareholders’ equity
Common stock
Balance at the beginning ofcurrent year

Capital surplus

21,894Retained earnings

20,500Total shareholders’equityTreasury stock

61,526(2)

103,920

Net changes during the year
Cash dividends paid

(1,948)(1,948)

Profit attributable toowners of parent

9,179

9,179

Acquisition of treasury
stock

–

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

–

–

7,231

–

7,231

21,89420,50068,758(2)

111,151

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

Remeasurements ofdefined benefit plans

(6)

(59)

Total accumulated othercomprehensive income(loss)

Non-controllinginterests

(65)

67

Total net
assets103,922Net changes during the year
Cash dividends paid

(1,948)

Profit attributable toowners of parent

9,179

Acquisition of treasurystock
Net change in items otherthan shareholders’ equity

–
(71)

(99)

(170)

21

(149)

Total changes during the
year

(71)

(99)

(170)

21

7,081

Balance at the end ofcurrent year

(77)

(159)

(236)

88

111,003- 11 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

Current fiscal year (May 1, 2020 to April 30, 2021)(Million yen)
Shareholders’ equity
Common stock
Balance at the beginning ofcurrent year

Capital surplus

21,894Retained earnings

20,500Total shareholders’equityTreasury stock

68,758(2)

111,151

Net changes during the year
Cash dividends paid

(1,948)(1,948)

Profit attributable toowners of parent

6,697

6,697

Acquisition of treasury
stock

(1)

(1)

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

–

–

4,748

(1)

4,747

21,89420,50073,506(3)

115,899

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

Remeasurements ofdefined benefit plans

(77)

(159)

Total accumulated othercomprehensive income(loss)

Non-controllinginterests

(236)

88

Total net
assets111,003

Net changes during the year
Cash dividends paid

(1,948)

Profit attributable toowners of parent

6,697

Acquisition of treasury
stock

(1)

Net change in items otherthan shareholders’ equity

64

31

95

(9)

85

Total changes during the
year

64

31

95

(9)

4,833

Balance at the end ofcurrent year

(12)

(128)

(141)

78

115,837- 12 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

(4) Consolidated statement of cash flows

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Amortization of goodwill(Gain) loss on sales of shares of subsidiaries andassociates
Impairment losses on fixed assets
Increase (decrease) in allowance for doubtful accounts(Decrease) increase in reserve for reward obligations
Increase in defined benefit liability
Gain on transfer of business
Gain on contribution of securities to retirement benefit
trust
Increase in allowance for bonuses to employees
Decrease in allowance for bonuses to directors
Interest and dividend income
Interest expenses
Share of profit of entities accounted for using equity
methodGains on investments in partnerships
Gains on donations of property, plant and equipment
Gains on sales of investments in securities
Loss on valuation of investment securities
Losses on disposal and sales of fixed assets
Decrease (increase) in accounts receivable
Decrease (increase) in inventories
Increase in other assets
Increase in other accounts receivable(Decrese) increase in accounts payable(Decrese) increase in other liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities- 13 -(Million yen)Previous fiscal year
(May 1, 2019
to April 30, 2020)

Current fiscal year
(May 1, 2020
to April 30, 2021)

15,930
4,087
4,357

11,767
4,243
4,436

34

(111)

263
(2)
13
256
(419)

804
210
(1)
304
(399)

(223)

–

183
(1)
(92)
63

249
(0)
(82)
44

–

(10)

(10)
(48)
–
218
880
(429)
(1,939)(1,237)
(530)
1,793
745
23,89392(64)(6,174)
17,747

(68)
(28)
(9)
37
391
138
1,172
(539)
(221)
(844)
(2)
21,48286(44)(6,595)
14,928AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

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
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Increase in other investments
Proceeds from withdrawal of time deposits
Payments for time deposits
Other, net
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
Cash dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year

- 14 -

Previous fiscal year
(May 1, 2019
to April 30, 2020)(Million yen)

Current fiscal year
(May 1, 2020
to April 30, 2021)(4,913)(3,930)

1,014
(874)
39

1,001
(557)
293

(1,442)

(997)

(189)
939
(0)
1
(1,465)188(4,710)

(20)
680
(0)
0
(1,811)
7(2,219)

662

1,070

(924)
314
(109)
(4)
(11,474)(3,110)
146
(12)
(34)
(9,493)(15)
100(5,598)(375)–(1,948)(7,837)(1,564)47,49545,931(21)
12,625(6,792)(218)(1)(1,948)3,643
9,078
45,93155,009AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

(5) Notes to consolidated statements(Notes on the premise of a going concern)
There are no applicable matters to be reported.
(Matters related to consolidated statement of income)In response to requests from local and national governments, the Group has temporarily closed or shortened
the opening hours of many stores in the cosmetic and drug business to prevent the spread of COVID-19.
Fixed expenses (personnel expenses, depreciation, rent and others) incurred by stores during the closures
have been booked as “Loss on temporary store closures” under “Extraordinary losses.”(Segment information, etc.)
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 cosmetic and drug store business that consists of the management ofcosmetic and drug stores as well as other businesses, which includes a retail store businessa and a realestate leasing business. The formulation and examination of business strategy is conducted individually foreach business.
Accordingly, the reportable segments of the Group are composed of three units, namely, dispensing
pharmacy business, cosmetic and drug store business and other businesses.
Due to a realignment of consolidated subsidiaries, WHOLESALE STARS Co., Ltd., which was classified as
a company in the pharmacy business reportable segment in the previous fiscal year, has been reclassified asa consolidated subsidiary associated with multiple reportable segments from the fiscal year under review. As
a result, based on the revised classifications for reportable segments, some assets have been transferredfrom the pharmacy business to administrative divisions, which are not part of reportable segments.
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.

- 15 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

3. Sales, income (loss), assets, liabilities and other items for each reportable segment
I. Previous fiscal year (May 1, 2019 to April 30, 2020)(Million yen)
Reportable segments
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

263,750

24,701

4,163

Adjustments(Note) 1

Consolidated(Note) 2

292,615–

292,615

Total

Sales
Sales to third parties
Intersegment sales

–

–

114

114

(114)

–

Total sales

263,750

24,701

4,277

292,729(114)

292,615

Segment income (loss)

20,850262(342)

20,771(3,948)

16,822

Segment assets

163,667

12,771

11,869188,308

5,143

193,451

Depreciation
and amortization

2,676

391

279

3,347

199

3,547

Amortization of
goodwill

4,336

3

18

4,357

–

4,357

91

172

–

263

–

263

3,688

1,488

311

5,488

337

5,825

Other

Impairment losses
Increase of tangible
and intangible assets
Notes:

1. Segment income (loss) in “Adjustments” totaling (¥3,948 million) includes ¥5,777 million in corporate expenses,(¥1,923 million) in (income) losses that may not be allocated to the reporting segments, and ¥94 million inelimination due to intersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions and the system
logistics division of the parent company, which are not part of the reportable segments.
Segment assets in “Adjustments” totaling ¥5,143 million consist mainly of assets associated with theadministrative divisions and the system logistics division of the parent company, which are not part of thereportable segments, and the difference in elimination of intersegment transactions.
2. Segment income (loss) 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, 2021
II. Current fiscal year (May 1, 2020 to April 30, 2021)(Million yen)
Reportable segments
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

Total

Adjustments(Note) 1

Consolidated(Note) 2

Sales
Sales to third parties

263,095

19,41914,791

297,305–

297,305

Intersegment sales

–

–

103

103

(103)

–

Total sales

263,095

19,41914,894297,408(103)

297,305

Segment income (loss)

20,947(1,999)(721)

18,227(5,577)

12,649Segment assets

161,497

13,326

9,469

184,293

19,368203,662

Depreciation
and amortization

2,571

536

303

3,411

291

3,702

Amortization of
goodwill

4,278

6

151

4,436

–

4,436

Impairment losses

516

288

–

804

–

804

Increase of tangible
and intangible assets

3,299

1,218

352

4,871

1,031

5,903

Other

Notes:

1. Segment income (loss) in “Adjustments” totaling (¥5,577 million) includes ¥6,684 million in corporate expenses,(¥1,278 million) in (income) losses that may not be allocated to the reporting segments, and ¥171 million inelimination due to intersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions and the system
logistics division of the parent company, which are not part of the reportable segments.
Segment assets in “Adjustments” totaling ¥19,368 million consist mainly of assets associated with theadministrative divisions and the system logistics division of the parent company, which are not part of thereportable segments, and the difference in elimination of intersegment transactions.
2. Segment income (loss) is adjusted with the ordinary income of consolidated statements of income.

- 17 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

Related information
Previous fiscal year (May 1, 2019 to April 30, 2020)
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 located outside
Japan at the balance sheet date.
Current fiscal year (May 1, 2020 to April 30, 2021)
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 located outside
Japan at the balance sheet date.
Information regarding impairment losses of fixed assets for each reported segment
Previous fiscal year (May 1, 2019 to April 30, 2020)
This disclosure has been omitted because the same information is disclosed under Segment Information.
Current fiscal year (May 1, 2020 to April 30, 2021)
This disclosure has been omitted because the same information is disclosed under Segment Information.

- 18 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

Information about goodwill amortization amount and year-end balance for each reportable segment
Previous fiscal year (May 1, 2019 to April 30, 2020)(Million yen)
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

Corporate /Eliminations

Total

Amortization of current fiscal year

4,336

3

18

–

4,357

Balance at the end of current fiscal year

40,699

60

1,363

–

42,123Current fiscal year (May 1, 2020 to April 30, 2021)(Million yen)
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

Corporate /Eliminations

Total

Amortization of current fiscal year

4,278

6

151

–

4,436

Balance at the end of current fiscal year

37,821

54

1,182

–

39,057

Information about gains on bargain purchase for each reported segment
Previous fiscal year (May 1, 2019 to April 30, 2020)
There are no applicable matters to be reported.
Current fiscal year (May 1, 2020 to April 30, 2021)
There are no applicable matters to be reported.
(Per-share information)
Previous fiscal year
(May 1, 2019 to April 30, 2020)

Current fiscal year
(May 1, 2020 to April 30, 2021)

Net assets per share

3,130.77 yen

3,267.49 yen

Earnings per share

259.11 yen

189.04 yen

Notes: 1. Diluted earnings per share is not mentioned since dilutive shares do not exist.
2. The basis of calculation of net assets per share and earnings per share is as follows.
Previous fiscal year
Current fiscal year
(May 1, 2019 to April 30, 2020)(May 1, 2020 to April 30, 2021)
Profit attributable to owners of parent(million yen)

9,179

6,697

–

–

Net income attributable to owners of theparent pertaining to common stock(million yen)

9,179

6,697

Average number of shares outstanding(shares)

35,427,484

35,427,408

Amount not attributable to ordinary
shareholders (million yen)

(Important subsequent events)
There are no applicable matters to be reported.

- 19 -