Summary of Financial Statements for the Second Quarter of Fiscal Year Ending April 2024
[Japan GAAP] (Consolidated)
December 6, 2023
Name of listed company:

AIN HOLDINGS INC.

Exchange listed on:

Prime Market of Tokyo Stock Exchange and Sapporo Securities Exchange

Code number:

9627

URL: https://www.ainj.co.jp/corporate/

Representative:
Inquiries:

Kiichi Otani, President and Representative Director
Toshihide Mizushima, Representative Senior Managing Director
TEL: +81-11-814-1000
Date of filing quarterly securities report:
December 15, 2023–

Start of dividend payment:

Yes (Supplementary materials for the quarterly results are disclosed on the

Supplementary documents for quarterly results:

Company’s website appropriately as the financial statements.)

Quarterly results briefing:

Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen.)
1. Consolidated results for the second quarter of fiscal year ending April 30, 2024 (May 1, 2023 to October 31, 2023)(1) Consolidated operating results(Percentage figures show year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Six months ended October 31, 2023
Six months ended October 31, 2022
(Note) Comprehensive income:Million yen
193,727

%
13.2

%
28.2

Million yen
5,257

%
38.2

171,204
11.9
6,786
17.5
7,285
18.9
Six months ended October 31, 2023: ¥5,393 million (+43.1%)
Six months ended October 31, 2022: ¥3,770 million (+13.9%)

3,805

14.0

Earnings
per share
Six months ended October 31, 2023

Million yen
8,749

%
28.9

Million yen
9,338

Diluted earnings
per share
Yen

Yen

149.66-Six months ended October 31, 2022
108.32(Note) In the third quarter of the fiscal year ended April 30, 2023, the Company finalized provisional accounting treatment related
to a business combination. Results for the second quarter of the fiscal year ended April 30, 2023 reflect the finalized figures.
(2) Consolidated financial position
Total assets
Million yen

Net assets

Shareholders’ equity ratio

Million yen%

As of October 31, 2023

242,922

129,844

53.4

As of April 30, 2023

231,750

126,546

54.6(Reference) Shareholders’ equity: As of October 31, 2023: ¥129,760 million

As of April 30, 2023: ¥126,449 million

2. Dividends
End of firstquarter
Yen-

Year ended April 30, 2023

End of second
quarter
Yen
0.00

Dividend per share
End of third
quarterYen-

0.00
Year ending April 30, 2024
Year ending April 30, 2024
(forecast)(Note) Revision to the most recently announced dividend forecasts: No

End of year-

Full year

Yen

Yen

60.00

60.00

60.00

60.00

3. Consolidated financial forecasts for the fiscal year ending April 30, 2024 (May 1, 2023 to April 30, 2024)(Percentage figures show year-on-year changes.)
Profit attributable toEarnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Million yen%
Million yen%
Million yen%
Million yen%
Yen
Full year

390,263

8.8

18,45015.3

19,34013.3

10,0008.3

284.64(Note) Revision to the most recently announced consolidated financial forecasts: Yes
For more details about the revisions, please refer to today’s release (December 6, 2023), “Notice on the Differences
Between Consolidated Financial Forecasts and Results for the First Six Months of the Fiscal Year and Revisions to FullYear Consolidated Financial Forecasts.”*Notes(1) Major changes in subsidiaries during the period (changes in specified subsidiaries resulting from changes in scope of
consolidation): No
Newly consolidated: –Excluded: –(2) Application of specified accounting methods for the preparation of quarterly consolidated financial statements: Yes(Note) For detail, please refer to “2. Quarterly consolidated financial statements and major notes (4) Notes on quarterly consolidated
financial statements” on page 10 of the Attachment.

(3) 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.:
No2) Changes in accounting principles other than 1):
No3) Changes in accounting estimates:
No4) Restatement of revisions:(4) Number of outstanding shares (common stock)1) Number of outstanding
shares (including treasury
As of October 31, 2023
stock):
2) Number of shares held in
As of October 31, 2023
treasury:
3) Average number ofSix months ended
shares outstanding:
October 31, 2023

No

35,428,212 shares As of April 30, 2023

35,428,212 shares

295,726 shares As of April 30, 2023

298,188 shares

Six months ended
October 31, 2022

35,128,208 shares

35,130,844 shares*This Summary of Financial Statements is outside the scope of quarterly review 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 the Second Quarter of the Fiscal Year Ending April 30, 2024

Contents of the Attachment
1. Qualitative information on consolidated results for the period under review ..................................................................... 2(1) Consolidated operating results .................................................................................................................................... 2(2) Consolidated financial position .................................................................................................................................... 3(3) Forecast of consolidated financial results and other forward-looking information ........................................................ 3
2. Quarterly consolidated financial statements and major notes ........................................................................................... 4(1) Quarterly consolidated balance sheet .......................................................................................................................... 4(2) Quarterly consolidated statements of income and comprehensive income ................................................................. 6
Quarterly consolidated statements of income................................................................................................................. 6
Quarterly consolidated statements of comprehensive income ....................................................................................... 7(3) Quarterly consolidated statements of cash flows ......................................................................................................... 8(4) Notes on quarterly consolidated financial statements ................................................................................................ 10(Notes on the premise of a going concern)................................................................................................................... 10(Notes on significant changes in the amount of shareholders’ equity) .......................................................................... 10(Application of specified accounting methods for the preparation of quarterly consolidated financial statements) ....... 10(Business combinations, etc.)....................................................................................................................................... 10(Segment information, etc.) .......................................................................................................................................... 11

1

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2024

1. Qualitative information on consolidated results for the period under review
In the third quarter of the fiscal year ended April 30, 2023, the Company finalized provisional accounting treatment related
to a business combination. To facilitate comparison and analysis of the same quarter of the previous fiscal year, amounts inthese quarterly financial statements reflect significant revisions to the initial allocation of acquisition costs as a result of the
finalization of the provisional accounting treatment.
(1) Consolidated operating results
During the first six months of the current fiscal year (May 1, 2023 to October 31, 2023), the Japanese economy showedsigns of a moderate pickup, supported by a recovery in mobility following the downgrade of COVID-19 to a category-5
infectious disease and the easing of mobility restrictions. However, the outlook remains uncertain due to rising prices andfluctuations in financial and capital markets.
In this economic environment, the AIN HOLDINGS Group (the Group) worked to provide healthcare and retail services, inline with its mission to “contribute to local healthcare” and “provide beauty and happiness” – two of the Group’s materiality
issues. AIN HOLDINGS aims to be a company that “people welcome to their communities” by helping to solve various social
issues through its business activities.
In addition, diversity & inclusion is a key part of our efforts to create a “sound management base,” one of the Group’smateriality issues. Specifically, the Group is actively promoting diversity by creating working environments and organizations
that are welcoming and motivating for all employees, among other initiatives. These efforts have been recognized, with AIN
PHARMACIEZ INC., the Group’s core operating company, receiving "Platinum Kurumin" certification from the Minister of
Health, Labour and Welfare in July 2023 for its efforts to help employees balance work and parenting commitments as a"parenting support company."
The Company established its CSR Procurement Policy and Guidelines in October 2022. In July 2023, we held a briefing
session for suppliers to implement CSR procurement across the Group’s supply chain, and in August, we conducted a CSR
survey to ascertain the status of implementation. In this way, we will assess and analyze supply chain risks and communicate
with suppliers to ensure compliance with our CSR requirements, helping to strengthen the Group’s collaborative CSR systemwith suppliers. Going forward, the AIN Group will continue to promote sustainability initiatives across its supply chain torealize sustainable procurement.
Results for six months ended October 31, 2023 (May 1, 2023 to October 31, 2023) are as follows.
(Million yen) Six months ended
ChangeSix months ended

Change (%)

October 31, 2022

October 31, 2023

171,204
6,786
7,285
3,805

193,727
8,749
9,338
5,257

Six months ended
October 31, 2022

Six months ended
October 31, 2023

Sales
153,248
Segment profit
10,771
Sales
12,205
Segment profit
349
Sales
5,781
Other businesses
Segment profit(18)(loss)(Note) Segment sales include intersegment transactions.

173,234
12,492
14,832
1,318
5,685

19,985
1,721
2,626
968
(95)

13.0
16.0
21.5
277.3
(1.7)

(49)

(30)

-

Net sales
Operating profit
Ordinary profit
Profit attributable to owners of parent
Results by segment are as follows.
(Million yen)
Dispensing
pharmacy business
Cosmetic and drug
store business

22,523
1,962
2,052
1,452

Change

13.2
28.9
28.2
38.2

Change (%)(Dispensing pharmacy business)
The Group is working to leverage the primary care capabilities of its pharmacists and dispensing pharmacies to help
patients access medical services in their local community with peace of mind. Specifically, the Group is cooperating withmedical institutions, using patient medication notebooks to ensure integrated and continuous monitoring of patient
medication, and providing services for home-based healthcare.
The Group is also actively promoting digital transformation to improve convenience for patients. Specifically, in addition tothe official AIN Pharmacy app, which was launched in 2022, the Group set up an official AIN Pharmacy LINE account in
October 2023 to make its prescriptions sending service more accessible for customers.
The average prescription price rose due to an increase in high-cost prescriptions, including COVID-19 treatments. The
number of prescriptions also increased, reflecting the easing of restrictions on outpatient visits after COVID-19 was
downgraded to a category-5 infectious disease and an early seasonal rise in influenza infections, as well as an increase in2

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2024

service levels related to improvements in the capabilities of primary care pharmacists and pharmacies and reduced waitingtimes.
During the period under review, the Group opened 15 new dispensing pharmacies, including those acquired through M&A
deals, closed five, and sold two, resulting in a total of 1,217.
(Cosmetic and drug store business)
In the cosmetic and drug store business, customer numbers were firm amid a recovery in mobility for both domestic
shoppers and overseas visitors. There was also a change in customer buying habits from infection control products tocosmetics, one of the Company's strengths, lifting the average sales price.
The profit margin also improved due to a drop in selling, general and administrative expenses. The Group will continue toclosely monitor buying trends, reinforce the merchandise lineup and create attractive retail displays.
During the period under review, the Group opened two stores and closed two, resulting in a total of 78 cosmetic and drug
stores.
(2) Consolidated financial position
The balance of total assets at the end of the second quarter increased by ¥11,171 million from the end of the previous
fiscal year to ¥242,922 million. This mainly reflected an increase in merchandise due to a rise in inventories of COVID-19
treatments, and an increase in buildings and structures due to the opening of stores.
The balance of liabilities increased ¥7,873 million to ¥113,078 million. The main factors were increases for accounts
payable.
The balance of short-term and long-term debt decreased by ¥2,051 million to ¥6,640 million, primarily reflecting therepayment of loans payable.
Total net assets increased by ¥3,298 million to ¥129,844 million and the shareholders’ equity ratio decreased 1.2
percentage points to 53.4%.
(Cash flows)
In the first six months of the fiscal year, cash and cash equivalents increased by ¥4,063 million from the previous fiscal
year end to ¥50,280 million.
Cash flows from each activity and their relevant factors are as follows.
During the first six months of the fiscal year, net cash provided by operating activities was ¥14,094 million, compared with
¥8,456 million provided in the same period a year earlier. The main cash inflows were profit before income taxes of ¥9,427
million, depreciation of ¥2,929 million, amortization of goodwill of ¥2,177 million and increase in trade payables of ¥7,759
million. The main cash outflows were increase in inventories of ¥3,232 million, increase in accounts receivable – other of¥3,557 million and income taxes paid of ¥3,316 million.
Net cash used in investing activities amounted to ¥5,793 million, compared with ¥18,617 million used in the same perioda year earlier. The main cash outflow was ¥5,320 million for purchases of property, plant and equipment and intangible
assets.
Net cash used in financing activities totaled ¥4,237 million, compared with ¥5,793 million used in the same period a year
earlier. The main cash outflows were net repayment of ¥2,121 million from short-term and long-term borrowings repayment
and proceeds, and ¥2,107 million for cash dividends paid.
(3) Forecast of consolidated financial results and other forward-looking information
The Group has revised its consolidated financial forecasts for the fiscal year ending April 30, 2024, which were announced
on June 2, 2023. For more details, please refer to today’s release (December 6, 2023), “Notice on the Differences Between
Consolidated Financial Forecasts and Results for the First Six Months of the Fiscal Year and Revisions to Full-Year
Consolidated Financial Forecasts.”

3

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2024

2. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheet
Fiscal year endedApril 30, 2023
(As of April 30, 2023)

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise
Supplies
Short-term loans receivable
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Leasehold and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4(Million yen)Six months ended
October 31, 2023
(As of October 31, 2023)

46,796
13,24921,299286
355
11,9694,348
98,30550,51813,64324,567288
233
15,5543,410(1)
108,214

21,407
10,602
7,449
39,45923,624
10,313
6,739
40,67746,4435,900
52,343

44,634
6,342
50,9762,720
5,990
24,5078,735(312)
41,641
133,444
231,750

2,900
6,046
25,213
9,176(281)
43,054
134,708
242,922

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2024

Fiscal year endedApril 30, 2023
(As of April 30, 2023)

Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Income taxes payable
Deposits received
Provision for bonuses
Provision for bonuses for directors
Contract liabilities
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5(Million yen)Six months ended
October 31, 2023
(As of October 31, 2023)

58,698
3,670
3,328
18,232
3,215
22
532
5,284
92,986

66,556
3,643
4,223
19,441
3,924
27
456
4,444
102,718

5,021
4,498
2,697
12,218105,204

2,996
4,699
2,662
10,359113,078

21,89420,50485,963(2,000)126,362

21,894
20,49989,113(1,983)
129,524

(7)
95
87
96
126,546
231,750

156
79
236
83
129,844
242,922

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2024

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statements of income(Million yen)Six months ended
October 31, 2023
(May 1, 2023 to
October 31, 2023)

Six months ended
October 31, 2022
(May 1, 2022 to
October 31, 2022)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Commission income
Rental income from real estate
Outsourcing service income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sale of receivables
Rental expenses on real estate
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on sale of businesses
Surrender value of insurance policies
Other
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

6

171,204
146,215
24,98918,202
6,786

193,727
165,960
27,767
19,017
8,749

23
31
10
97
106
96
320
686

20
26
5
149
117
192
248
761

27
48
42
68
187
7,285

17
55
61
37
172
9,338

2
46
35
1
86

357
2
0
3
363

118
63
23
204
7,167
3,370
3,796
(8)
3,805

106
153
13
274
9,427
4,182
5,244
(13)
5,257

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2024

Quarterly consolidated statements of comprehensive income(Million yen)Six months ended
October 31, 2023
(May 1, 2023 to
October 31, 2023)

Six months ended
October 31, 2022
(May 1, 2022 to
October 31, 2022)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income (loss) attributable tonon-controlling interests

7

3,796

5,244

(39)
12
(26)
3,770
3,778

164
(15)
148
5,393
5,406

(8)

(13)

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2024

(3) Quarterly consolidated statements of cash flows(Million yen)Six months ended
October 31, 2023
(May 1, 2023 to
October 31, 2023)

Six months ended
October 31, 2022
(May 1, 2022 to
October 31, 2022)

Cash flows from operating activities
Profit before income taxes
Depreciation
Share-based payment expenses
Amortization of goodwill
Impairment losses
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in contract liabilities
Increase (decrease) in retirement benefit liability
Loss (gain) on sale of businesses
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors
Interest and dividend income
Interest expenses
Loss (gain) on investments in investment partnerships
Gain on receipt of donated non-current assets
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Loss (gain) on sale and retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in other assets
Decrease (increase) in accounts receivable - other
Increase (decrease) in trade payables
Increase (decrease) in other liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities

8

7,167
2,567
21
2,117
63
(9)
53
(609)
(46)
676

9,427
2,929
12
2,177
153
(0)
(76)
162
(2)
698

12

4

(55)
27
(34)
(27)
0
115
1,694
(4,890)
1,025(1,659)5,255(584)
12,88161(27)(4,458)
8,456

(47)
17
(28)
(2)
6
(250)
(286)
(3,232)918(3,557)
7,759
596
17,38147(17)(3,316)
14,094

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2024

(Million yen)Six months ended
October 31, 2022
(May 1, 2022 to
October 31, 2022)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of shares of subsidiaries resulting in change
in scope of consolidation
Payments for loans receivable
Proceeds from collection of loans receivable
Payments for investments in capital
Proceeds from divestments
Purchase of intangible assets
Proceeds from sale of intangible assets
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Decrease (increase) in investments and other assets
Proceeds from withdrawal of time deposits
Payments into time deposits
Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Redemption of bonds
Repayments of lease liabilities
Dividends paid
Net cash used in financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period

9

Six months ended
October 31, 2023
(May 1, 2023 to
October 31, 2023)(4,313)
1,380
(397)
344

(3,856)847
20(14,602)

(295)

(110)
274
(0)
0
(1,367)
0
(444)

(0)
138
0
(1,463)0(1,261)

586

564

(123)
362
(206)
(18,617)

(883)
402
(6)
(5,793)(123)
10(3,492)(240)(16)(1,932)(5,793)(15,955)
59,47043,514(2,121)(8)(2,107)(4,237)
4,063
46,21750,280AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2024

(4) Notes on quarterly consolidated financial statements(Notes on the premise of a going concern)
There are no applicable matters to be reported.
(Notes on significant changes in the amount of shareholders’ equity)
There are no applicable matters to be reported.
(Application of specified accounting methods for the preparation of quarterly consolidated financial statements)
To calculate tax expenses, the effective tax rate on profit before income taxes for the consolidated fiscal year after theapplication of tax effect accounting is reasonably estimated and the estimated rate is applied to profit before income taxes
for the quarterly period.
(Business combinations, etc.)(Significant revision of initial allocation of acquisition costs in comparative information)
In the first quarter of the previous fiscal year, provisional accounting treatment was applied for the Company’s businesscombination with Pharmacy Holdings Co. Ltd. on May 23, 2022, and the provisional accounting treatment was finalized in
the third quarter.
Comparative information in the quarterly consolidated financial statements for the second quarter of the current fiscal year
reflects significant revisions to the initial allocation of acquisition costs due to the finalization of the provisional accounting
treatment. As a result, goodwill of ¥12,921 million under the provisional accounting treatment increased by ¥104 million to¥13,026 million under the finalized accounting treatment. The rise in goodwill reflects an increase of ¥54 million in deferred
tax assets under investments and other assets and an increase of ¥159 million in retirement benefit liability under noncurrent liabilities.
The impact of this change on the consolidated financial statements for the second quarter of the previous fiscal year isimmaterial.
Pharmacy Holdings Co. Ltd. was dissolved on December 1, 2022 after it was merged into its wholly owned subsidiary
PHARMACY Co. Ltd. (Fukuyama City, Hiroshima Prefecture), the surviving company.

10

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2024

(Segment information, etc.)
I Six months ended October 31, 2022 (May 1, 2022 to October 31, 2022)
1. Net sales and profit (loss) by reportable segment(Million yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Reportable segments
Adjustments(Note) 1

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses(1) Sales to third parties

153,248

12,2055,750

171,204-

171,204(2) Intersegment sales

-

-

31

31

(31)

-

153,248

12,205

5,781

171,235(31)

171,204

10,771349(18)

11,101(3,816)

7,285

Total

Sales

Total sales
Segment profit (loss)
Notes:

1. The adjustment of ¥(3,816) million to segment profit (loss) includes ¥4,419 million in corporate expenses, ¥(589)
million in (income) loss that are not allocated to reportable segments, and ¥(13) million in eliminations due tointersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions and the system
logistics division, which are not part of the reportable segments.
2. Segment profit (loss) is adjusted with the ordinary profit of quarterly consolidated statements of income.
3. In the third quarter of the previous fiscal year, the Company finalized provisional accounting treatment related to abusiness combination. Results for the second quarter of the previous fiscal year reflect the finalized figures.

2. Impairment losses on fixed assets and goodwill by reportable segment[Significant impairment losses on fixed assets]
There are no applicable matters to be reported.
[Significant changes in the amount of goodwill]In the dispensing pharmacy business segment, Pharmacy Holdings Co. Ltd. and its subsidiaries were included in thescope of consolidation from the first quarter of the previous fiscal year following the acquisition of all shares in Pharmacy
Holdings Co. Ltd. As a result, goodwill increased by ¥13,026 million.
Effective December 1, 2022, the company was dissolved following a merger with its wholly owned subsidiary
PHARMACY Co. Ltd. (Fukuyama City, Hiroshima Prefecture), the surviving company. The increase in goodwill is the amountreflected after the finalization of provisional accounting treatment, as described in "Notes on quarterly consolidated financial
statements, (Business combinations, etc.)," "Significant revision of initial allocation of acquisition costs in comparative
information."

11

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2024

II Six months ended October 31, 2023 (May 1, 2023 to October 31, 2023)
1. Net sales and profit (loss) by reportable segment(Million yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Reportable segments
Adjustments(Note) 1

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses(1) Sales to third parties

173,234

14,832

5,660

193,727-

193,727(2) Intersegment sales

-

-

24

24

(24)

-

173,234

14,832

5,685

193,752(24)

193,727

12,492

1,318

(49)

13,761(4,422)

9,338

Total

Sales

Total sales
Segment profit (loss)
Notes:

1. The adjustment of ¥(4,422) million to segment profit (loss) includes ¥5,051 million in corporate expenses, ¥(606)
million in (income) loss that are not allocated to reportable segments, and ¥(22) million in eliminations due tointersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions and the system
logistics division, which are not part of the reportable segments.
2. Segment profit (loss) is adjusted with the ordinary profit of quarterly consolidated statements of income.

2. Impairment losses on fixed assets and goodwill by reportable segment[Significant impairment losses on fixed assets]
There are no applicable matters to be reported.
[Significant changes in the amount of goodwill]
There are no applicable matters to be reported.

12