FY4/18 2Q
Supplementary Materials

December 5, 2017

１．Consolidated Results■Year-on-Year
FY4/17 2Q
results

FY4/18 2Q
results

YoYchange(¥ million)
YoYchange(%)

Net sales

116,844

132,342+15,498+13.3

Gross profit

18,36522,390+4,025+21.9% of net sales

15.7

16.9

13,315

14,022+707+5.3

11.4

10.6

5,049

8,367+3,318

+65.7

4.3

6.3

5,346

8,665+3,319+62.1

4.6

6.5

2,855

4,418+1,563+54.7

2.4

3.3

90.07

134.91+44.84+49.8

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
FY4/18 2Q
plan

FY4/18 2Q
results

Vs planchange(¥ million)
Vs planchange(%)

Net sales

129,400

132,342+2,942+2.3

Gross profit% of net sales

21,38022,390+1,010

+4.7

16.5

16.9

SG&A expenses% of net sales

14,68014,022(658)

(4.5)

11.3

10.6

Operating income% of net sales

6,700

8,367+1,667+24.9

5.26.3

Ordinary income% of net sales

6,900

8,665+1,765+25.6

5.3

6.5

3,600

4,418+818

+22.7

2.8

3.3

109.91134.91+25.00+22.7

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

Figures in the table are rounded down

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２. Segment Information（Dispensing Pharmacy Business）■Year-on-Year
FY4/17 2Q
results

FY4/18 2Q
results

YoYchange(¥ million)
YoYchange(%)

Net sales

104,297

117,991+13,694+13.1

Gross profit

13,620

16,541+2,921+21.4% of net sales

13.1

14.06,401

7,160+759+11.9

6.1

6.1

7,218

9,380+2,162+30.0

6.9

7.9

7,494

9,702+2,208+29.5

7.2

8.2

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
FY4/18 2Q
plan

FY4/18 2Q
results

Vs planchange(¥ million)
Vs planchange(%)

Net sales

115,400

117,991+2,591+2.2

Gross profit

15,670

16,541+871+5.6% of net sales

13.6

14.0

7,040

7,160+120+1.7

6.1

6.1

8,630

9,380+750

+8.7

7.5

7.9

8,830

9,702+872+9.9

7.7

8.2

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-2-3. Segment Information（Drug and Cosmetic Store Business）■Year-on-Year
FY4/17 2Q
results

FY4/18 2Q
results

YoYchange(¥ million)
YoYchange(%)

Net sales10,288

11,566+1,278+12.4

Gross profit

3,723

4,320+597+16.0% of net sales

36.2

37.4

4,1364,177+41+1.0

40.2

36.1(412)

143+555--

1.2(384)

163+547‐-

1.4

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
FY4/18 2Q
plan

FY4/18 2Q
results

Vs planchange(¥ million)
Vs planchange(%)

Net sales11,160

11,566+406+3.6

Gross profit

4,120

4,320+200+4.9% of net sales

36.9

37.4

4,390

4,177(213)

(4.9)

39.3

36.1(270)

143+413--

1.2(210)163+373--

1.4

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-

4. Sales Verification■Dispensing Pharmacy (YoY）
Net sales
Same store (828)Store openings in theprevious year (195)Total (1,045)（%）（%）■Dispensing Pharmacy（Vs Plan）
Average
Average
Prescription
Prescription
Net salesprescription
prescription
volumevolumeprice
price+1.9+0.6+1.5

Same store (828)+3.1+1.3+1.9+657.4+750.1(12.2)

Store openings in theprevious year (195)+2.0(2.7)+3.9+12.6+15.3(2.5)

Total (1,045)+2.2(0.2)+2.3■Drug and Cosmetic Store（YoY）
Net sales
Same store (40)Store openings in theprevious year (9)Total (50)（%） ■Drug and Cosmetic Store (Vs Plan）

Average
Number ofspending per
customers
customer

Net sales（%）

Average
Number ofspending per
customers
customer+2.5+4.6

Same store (40)+3.0(0.0)+3.0+1,804.9 +1,144.7+53.0

Store openings in theprevious year (9)

+10.5

+0.6

+9.9

+3.6

+0.1

+3.5+7.2+12.4+5.2+6.8

Total (50)-4-5. Consolidated Balance Sheet■Assets(¥ million)
End-FY4/17 2Q

Cash on hand and in banks
Notes and accounts receivable
Inventories
Total current assets
Buildings and structures,net
Land
Lease assets
Total property,plant andequipment
Goodwill
Lease assets
Total intangible fixed assets
Investments in securities
Deferred tax assets
Deposits and guarantees
Total investments and otherassets
Total fixed assets
Total assets
Figures in the table are rounded down

End-FY4/17

End-FY4/18 2Q

Change23,012
7,214
11,82353,295
14,6809,525
1,285

29,775
9,990
11,66865,42015,365
9,958
1,166

57,05910,25012,337
91,711
15,1809,784
1,040+27,284+260+669+26,291
(185)
(174)
(126)

27,74928,46427,931(533)

33,776
12
36,1132,5652,163
10,28740,9398
43,1092,435
2,167
10,44339,494
13
41,5692,438
2,071
10,697(1,445)+5(1,540)+3(96)+254

19,68819,32919,199(130)

83,552
136,847

90,902
156,323

88,700180,537(2,202)+24,214

Change(¥):End-FY4/18 2Q compared with end-FY4/17

Capital expenditures(Purchases of property, plant and equipment and intangible fixed assets + Deposits andguarantees) totaled ¥1,772million■Liabilities and Net Assets(¥ million)
End-FY4/17 2Q

End-FY4/17

Total liabilities and net assets

37,6937,584
641
64,707
12,1381,087
17,17781,8858,682
6,367
40,19354,82454,961
136,847

Figures in the table are rounded down

Change(¥):End-FY4/18 2Q compared with end-FY4/17

Accounts payable
Short-term debt
Lease obligations
Total current liabilities
Long-term debt
Lease obligations
Total long-term liabilities
Total liabilities
Common stock
Capital surplus
Retained earnings
Total shareholders’ equity
Total net assets

39,325
7,596
594
72,955
18,254958
23,18896,1448,682
6,367
45,28659,91860,178156,323

End-FY4/18 2Q-5-

40,326
7,457
520
70,285
14,608834
19,47289,757
21,89420,50048,12090,514
90,779180,537

Change+1,001
(139)
(74)
(2,670)(3,646)(124)(3,716)(6,387)+13,212+14,133+2,834+30,596+30,601+24,214

6. Consolidated Statements of Cash Flows(¥ million)
End-FY4/17 2Q

End-FY4/18 2Q

6,090

6,886+796

Profit before income taxes

5,298

8,104+2,806

Depreciation and amortization

1,753

1,735

(18)

Amortization of goodwill

1,660

1,983+323(Decrease) increase in accounts receivable

5,733

(92)

(5,825)

Increase in inventories

(651)

(583)

+68

Increase in other accounts receivable(1,525)

1,265+2,790

Increase (decrease) in accounts payable(2,918)806+3,724(3,053)(1,279)+1,774

Payments for purchases of property, plant andequipment and intangible fixed assets(1,544)(1,247)+297

Purchase of subsidiaries’ shares resulting in
obtaining controls(2,293)(418)+1,875

Net cash (used in) provided by financing
activities(2,616)

21,769+24,385

Proceeds from issuance of common sharesand sales of treasury shares-27,635+27,635

Net increase (decrease) in cash and cash
equivalents

420

27,376+26,956

Cash and cash equivalents at end of theperiod

22,312

56,611+34,299

Net cash provided by operating activities

Net cash used in investing activities

Figures in the table are rounded down

-6-

Change6. FY4/18 Plan (Consolidated)

FY4/17
results

FY4/18
FY4/18original plan revised plan

Vs planchange(¥ million)
YoYchange (%)

Net sales

248,110

267,500

267,500+19,390+7.8

Gross profit% of net sales

42,092

46,53047,40017.4

17.7+5,308+12.6

17.0

SG&A expenses% of net sales

27,52929,93029,40011.2

11.0+1,871+6.8

11.1

Operating income% of net sales

14,563

16,60018,0006.2

6.7+3,437+23.6

5.9

Ordinary income% of net sales

15,08017,00018,5006.4

6.9+3,420

+22.7

6.1

7,949

8,900

9,200

3.2

3.3

3.4

Earnings pershare(¥)

250.71

261.15269.96+19.25+7.7

Annual dividend (¥)

50.00

50.00

50.00

(0.00)(0.0)

Profit attributableto owners of parent% of net sales+1,251+15.7

Figures in the table are rounded down
Change(¥):FY4/18 revised plan compared with FY4/17 results
Earnings per share is calculated including new shares issued through a public offering (2,820,000) anda private placement (270,000). The Company plans to issue additional shares (450,000) through a private
placement for a secondary offering using an over-allotment option, but the impact of those shares has notbeen factored into the earnings per share calculation as the payment date is October 3, 2017.

-7-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 FY4/17

FY4/182QOrganic

211827383640322713M&A3352838261191101825Total

397448494560

616754881

1,066

1,045

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 FY4/17FY4/182Q

Organic

567733591Total

4953566159565252

50

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 without
prior 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.

-8-