Summary of Financial Statements for Fiscal Year Ended April 2016
May 27, 2016
AIN HOLDINGS INC.
First Section of Tokyo Stock Exchange and Sapporo Securities Exchange
9627
URL: http://www.ainj.co.jp/
Kiichi Otani, President and Representative Director
Toshihide Mizushima, Representative Senior Managing Director
TEL: +81-11-814-1000
Date of the ordinary general meeting of shareholders:
July 28, 2016
Date of scheduled payment of dividends:
July 29, 2016
Date of filing securities report:
July 29, 2016
Supplementary documents for this summary of financial statements: Yes
Explanation meeting for financial results:
Yes (for institutional investors and analysts)
Name of listed company:
Exchange listed on:
Code number:
Representative:
Inquiries:(Amounts are rounded down to the nearest million yen.)

1. Consolidated results for the fiscal year ended April 2016 (from May 1, 2015 to April 30, 2016)(Percentage figures show year-on-year changes.)(1) Consolidated operating results
Net salesYear ended April 30, 2016
Year ended April 30, 2015

Operating income

Profit attributable toowners of parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

234,843
187,904

25.0
10.4

14,61911,45227.7
13.2

15,158
11,697

29.6
10.5

7,917
6,197

27.8
17.8

(Note) Comprehensive income:Year ended April 30, 2016: ¥7,831 million (+21.7%)
Year ended April 30, 2015: ¥6,436 million (+21.2%)
Earnings per
share

Year ended April 30, 2016
Year ended April 30, 2015

Diluted earnings
per share

Return on equity

Ordinary income
to total assets

Operatingincome to net
sales

Yen

Yen

%

%

%

249.69195.45

–
–

15.6
13.8

11.9
10.9

6.2
6.1

(Reference) Equity in earnings of affiliates: Year ended April 30, 2016: ¥ – million, Year ended April 30, 2015: ¥ – million* On October 1, 2014, the Company conducted a 2-for-1 stock split of common shares. Net income per share is calculated by deeming stock
splits to have occurred at the beginning of the previous fiscal year.

(2) Consolidated financial position
Total assets
As of April 30, 2016
As of April 30, 2015

Net assets

Shareholders’ equity
ratio

Net assets per share

Million yen

Million yen%

Yen

139,888
114,149

53,32448,04638.1
42.0

1,679.69
1,511.57(Reference) Equity capital: As of April 30, 2016: ¥53,258 million

As of April 30, 2015: ¥47,928 million(3) Consolidated cash flows
Cash flows fromoperating activities
Year ended April 30, 2016
Year ended April 30, 2015

Cash flows frominvesting activities

Cash and cash
equivalents
at end of year

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

Million yen

21,352
14,839(20,877)(14,560)

2,028
374

21,892
19,3892. Dividends
Dividends per share

Total
dividends(annual)Dividends
payout ratio

Dividends on
net assets

1Q-end2Q-end3Q-endYear-end

Annual

Yen

Yen

Yen

Yen

Yen

Million yen(consolidated)%(consolidated)%Year ended April 30, 2016

–
–

0.00
0.00

–
–

30.00
40.00

30.00
40.00

951
1,268

15.3
16.0

2.1
2.5

Year ending April 30, 2017
(forecast)

–

0.00

–

50.00

50.00

Year ended April 30, 2015

17.6

3. Consolidated financial forecast for the fiscal year ending April 30, 2017 (from May 1, 2016 to April 30, 2017)
Net sales

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

Million yen%

Million yen%

First half

126,000

17.8

6,150

4.2

6,350

4.4

3,470

5.3

109.44

Full year

265,000

12.8

16,30011.5

16,700

10.2

9,000

13.7

283.84* 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.: Yes
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, 2016
stock):
2) Number of shares held in
As of April 30, 2016
treasury:
3) Average number of
Fiscal year endedApril 30, 2016
shares outstanding:

31,888,212 shares As of April 30, 2015

31,888,212 shares

180,595 shares As of April 30, 2015

180,595 shares

31,707,617 sharesFiscal year endedApril 30, 2015

31,707,913 shares* On October 1, 2014, the Company conducted a 2-for-1 stock split of common shares. Average number of shares outstandingis calculated by deeming stock splits to have occurred at the beginning of the previous fiscal year.
*Status of execution of the audit procedures of financial statements:
The procedure for the review of the financial statements under the Financial Instruments and Exchange Act was not completeat the moment of disclosing this summary.
*Statement regarding the proper use of financial forecasts and other special remarks:
The above forecasts are calculated based on the information available as of the publication date of this material, and actual
financial results may vary due to change in future economic conditions and others.

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

Contents of Attachment
1. Analysis of Operating Results and Financial Position ................................................................................... 2(1) Analysis of operating results ........................................................................................................................................ 2(2) Analysis of financial position ....................................................................................................................................... 3(3) Basic policies for profit distribution, and dividends for the current fiscal year and the next fiscal year .............. 4(4) Business and other risks .............................................................................................................................................. 6

2. State of the Group .............................................................................................................................................. 93. Management Policies ....................................................................................................................................... 11(1) Basic management policies of the Company ............................................................................................................. 11(2) Target management indicators .................................................................................................................................... 11(3) The Group’s medium- to long-term management strategies .................................................................................... 11(4) Issues to be addressed ............................................................................................................................................... 12

4. Basic stance on selection of accounting standards .................................................................................... 12
5. Consolidated Financial Statements ............................................................................................................... 13(1) Consolidated balance sheet ....................................................................................................................................... 13(2) Consolidated statement of income and comprehensive income ............................................................................ 15(3) Consolidated statement of changes in net assets .................................................................................................... 18(4) Consolidated statement of cash flows ....................................................................................................................... 20(Segment Information, etc.) .............................................................................................................................................. 22-1-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

1. Analysis of Operating Results and Financial Position(1) Analysis of operating results
During the fiscal year ended April 30, 2016, corporate earnings in Japan improved amid largely steadyproduction activity and consumer spending. However, the impact of the Kumamoto Earthquake in 2016 is apotential risk for the economy going forward.
In this economic environment, the AIN HOLDINGS Group (the Group) worked to expand its business andincrease earnings. Specifically, the Group opened new dispensing pharmacies and used M&A to expand thebusiness. It also developed its urban drug and cosmetic store business.
In addition, effective from November 1, 2015, the Group moved to a holding company structure. By separating
the Group’s management and business execution functions, the Group aims to enhance corporate governance,clarify the authority and responsibility of each business segment and promote greater management autonomy,
creating the foundations for further business expansion.
For the fiscal year under review, net sales rose 25.0% year on year to ¥234,843 million, operating income
increased 27.7% to ¥14,619 million, ordinary income rose 29.6% to ¥15,158 million and net income attributableto owners of the parent increased 27.8% year on year to ¥7,917 million.
Performance by business segment was as follows.

(Dispensing pharmacy business)
In the dispensing pharmacy business, sales continued to rise at existing dispensing pharmacies, supported
by an increase in average sales per prescription due to growth in prescriptions for new medicines.
In drug price and dispensing fee revisions in April 2016, the role of pharmacies located near hospitals wasreevaluated, but in order to realize patient-focused non-hospital dispensing services, pharmacists anddispensing pharmacies are now being required to play a key role at the heart of local communities.
To ensure our pharmacists and dispensing pharmacies fulfill their role at the heart of local communities, theGroup continues to build links with local healthcare service providers, mainly in the area of home-based
dispensing, step up the integration and continuous management of drug information using patient medication
notebooks and other means, and promote wider use of generic drugs.
The shortage of pharmacists in the healthcare sector is becoming more serious. To address this issue, theGroup is working to attract new graduates, with 375 new pharmacist graduates joining the Group in April 2016.
The Group is also upgrading pharmacist training programs to enhance their capabilities so that they can fill theirrole as pharmacists at the heart of the community.
In business development, the Group continued to push ahead with business expansion by opening new
dispensing pharmacies and using M&A, including the acquisition of NP HOLDINGS Co., Ltd. (Takamatsu-shi,
Kagawa Prefecture) in November 2015. NP HOLDINGS is the largest dispensing pharmacy chain in the Shikoku
region and is now a subsidiary of the Group.
The dispensing pharmacy business reported sales and profit growth with sales rising 24.8% year on year to¥211,009 million, and segment income increasing of 33.0% to ¥19,219 million. During the fiscal year underreview, the Group opened 142 dispensing pharmacies, including M&A deals, and closed 15 dispensing
pharmacies, resulting in a total of 881.

(Drug and cosmetic store business)
In the drug and cosmetic store business, the market environment remained challenging due to a narrowing
competitive gap between companies in the sector and the emergence of new competitors from sector
consolidation and realignment that also extends to other business sectors.
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AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

Against this backdrop, the Group continued to open ainz & tulpe urban drug and cosmetic stores,
strengthened merchandise lineups, particularly drug and cosmetics products, and worked to capture inbounddemand. As a result, sales at existing drug and cosmetic stores increased year on year.
In addition, the Group is working to strengthen the ainz & tulpe format with the launch of two proprietary
merchandise brands, LIPS and HIPS and cocodecica.
The Le trios retail facility (Chuo Ward, Sapporo), which was opened in September 2015, is steadily gaining
ground as a landmark beauty destination, supported by efforts to promote it as a mixed-use integrated beauty
complex in Sapporo’s Odori area.
In addition, in February 2016, the Group opened ainz & tulpe NEW CHITOSE AIRPORT (Chitose-shi,
Hokkaido) in the airport's international passenger terminal, in order to further strengthen efforts to capture
inbound demand.
As a result, for the fiscal year under review, the drug and cosmetic store business reported an increase insales of 17.3% year on year to ¥20,884 million. However, segment loss was ¥459 million, compared withsegment income of ¥117 million a year earlier.
During the fiscal year under review, the Group opened a number of ainz & tulpe stores, including ainz & tulpe
MARUI CITY YOKOHAMA (Nishi Ward, Yokohama), ainz & tulpe SHINJUKU HIGASHIGUCHI (Shinjuku Ward,
Tokyo) , ainz & tulpe Le trois (Chuo Ward, Sapporo) , ainz & tulpe NEW CHITOSE AIRPORT (Chitose-shi,
Hokkaido) and ainz & tulpe OMIYA MARUI (Omiya Ward, Saitama). At the same time, the Group closed ninestores, mainly in suburban locations, resulting in a total of 52 stores.

(Other businesses)
Net sales from other businesses rose 184.2% year on year to ¥2,949 million and segment loss was ¥1,142
million compared with the loss of ¥614 million a year earlier.

In the fiscal year ending April 30, 2017, the dispensing pharmacy business will continue to develop new
dispensing pharmacies and actively seek M&A opportunities. Also, the drug and cosmetic store business will
work to expand its business by continuing to open ainz & tulpe urban drug stores.
Based on these initiatives, the Group forecasts net sales for the fiscal year ending April 30, 2017 of ¥265,000
million, up 12.8% year on year, ordinary income of ¥16,700 million, up 10.2%, and net income attributable toowners of the parent of ¥9,000 million, an increase of 13.7%.
(2) Analysis of financial position
1) Assets, liabilities and net assets
The balance of total assets at the end of the fiscal year under review increased by ¥25,738 million to ¥139,888
million.
This mainly reflected increases in cash on hand and in banks and increases in property, plant and equipment
such as land, buildings and structures, and goodwill due to the Group’s business expansion through new store
openings and M&A.
The balance of liabilities increased ¥20,460 million to ¥86,563 million.
The balance of short- term and long-term debts increased by ¥6,573 million to ¥20,544 million.
Total net assets increased by ¥5,278 million to ¥53,324 million and the shareholders’ equity ratio decreased
3.9 percentage points to 38.1%.

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AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

2) Cash flows
In the fiscal year under review, cash on hand and in banks (“cash”) increased ¥2,503 million (12.9%) year on
year to ¥21,892 million. This reflected operating cash flow generated by dispensing pharmacy and drug andcosmetic store businesses, which was mainly used to actively invest in new store openings and M&A. Somecash was also retained to provide constant access to a certain level of funds.
Cash flows from each category and their relevant factors are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥21,352 million, an increase of 43.9% year on year.
The main items that were positive for cash flow were income before income taxes of ¥13,949 million, as well
as depreciation and amortization of ¥3,259 million, amortization of goodwill of ¥2,938 million, and an increasein accounts payable of ¥3,031 million related to business expansion through new store openings and M&A.
The main items that were negative for cash flow was income taxes paid of ¥4,579 million.
(Cash flows from investing activities)
Net cash used in investing activities totaled ¥20,877 million, an increase of 43.4% year on year.
This mainly reflected payments of ¥7,407 million for purchases of property, plant and equipment related to the
opening of new urban drug stores, retail facilities and dispensing pharmacies, and ¥10,954 million for purchasesof shares in subsidiaries due to changes in the scope of consolidation related to shares acquired in 28
companies through M&A deals.
(Cash flows from financing activities)
Net cash provided by financing activities rose 441.2% year on year to ¥2,028 million.
This was mainly attributable to net short-term debt repayment of ¥2,085 million and net long-term debt
procurement of ¥7,367 million.
Cash dividends paid of ¥951 million also had a negative impact on cash flows from financing activities.
Changes in the Group’s cash flow indicators are shown below.
Year ended April
30, 2013

Year ended April
30, 2014

Year ended April
30, 2015

Year ended April
30, 2016

Shareholders’ equity ratio (%)

40.0

41.5

42.0

38.1

Equity ratio based on market value (%)

79.3

70.3

117.9

121.0

Debt redemption term (years)

1.7

0.9

1.1

1.0

Interest coverage ratio (times)

70.3

143.0

179.2

226.6

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.

(3) Basic policies for profit distribution, and dividends for the current fiscal year and the next fiscal year
The Company considers the return of profits to shareholders as an important management issue. Our basic
policy is to repay our investors proportionate to the profit we make, and to maintain these at stable levels.
Internal reserves are held to strengthen the corporate structure and in preparation for new store openings andfuture development of the business. We will make effective use of these funds to generate profits to be returned-4-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

to shareholders in the future.
The Company’s basic policy is to pay dividends from retained earnings once per year at the end of the fiscal
year. The year-end dividend to be paid is determined at the ordinary general meeting of shareholders, andinterim dividends are set at the Board of Directors’ meeting. Further, the Company has stated in its Articles ofIncorporation that “When approved by the Board of Directors, interim dividends may be paid based on a record
date of October 31 each year.”
For the fiscal year under review, the Company plans to pay a dividend from retained earnings of ¥40 per share,compared with the previous fiscal year’s ordinary dividends of ¥30.
In view of our profit forecasts, plans for investment and other factors, we intend to pay an ordinary dividend
from retained earnings of ¥50 per share in the fiscal year ending April 30, 2017, an increase of ¥10 from thefiscal year ended April 30, 2016.

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AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016(4) Business and other risks
The following factors may affect the Group’s operating results, stock price and financial position. Statementsin the text referring to the future reflect the judgment of the Group at the end of the fiscal year under review.
1) Laws and regulations(i) Regulations under the Law for Ensuring the Quality, Efficacy, and Safety of Pharmaceuticals and Medical
Devices
We operate dispensing pharmacy business under various permits, licenses, registrations and notifications
including those set forth by the Law for Ensuring the Quality, Efficacy, and Safety of Pharmaceuticals andMedical Devices (the Pharmaceutical and Medical Device Law), the Health Insurance Law, and the Pharmacists
Law, under the supervision of the Ministry of Health, Labour and Welfare, and of prefectural health and welfare
departments.
The drugstore business in our drug and cosmetic store business also involves drug sales, which are similarly
regulated under the Pharmaceutical and Medical Device Law.
The main ones are as follows.
Approval, registration, appointment, license
or notification

Term ofvalidity

Related law or ordinance

Permit to open a pharmacy

6 years

Pharmaceutical and Medical
Device Law

Prefectural Governors

GrantorInsurance pharmacy certification

6 years

Health Insurance Law

Local welfarecommissioners of the
Health and Welfare of the
Ministry of Health,Labour and Welfare

License to sell narcotic drugs

2 years

Narcotics and Psychotropics
Control Law

Prefectural Governors

Notification of sales of medical equipment

Indefinite

Pharmaceutical and Medical
Device Law

Prefectural Governors

Business selling highly controlled medical
equipment

6 years

Pharmaceutical and Medical
Device Law

Prefectural Governors

Medical product sales permit (Note)

6 years

Pharmaceutical and Medical
Device Law

Prefectural Governors,
etc.

Note: Under Article 25 of the Pharmaceutical and Medical Device Law, medical product sales permits fall into the three
categories: Store-based drug sellers, drug sellers by household distribution and drug sellers by wholesale distribution.
The Group’s drug and cosmetic store business has a permit for store-based drug sales under this law. If the Group
becomes the subject of an order of revocation or suspension of business license by the competent authorities due to an
act committed in the Group’s dispensing pharmacy and drug and cosmetic store businesses, which constitutes aviolation of law set forth in Paragraph 1, Article 75 of the Pharmaceutical and Medical Device Law, items in Article 80 of
the Health Insurance Law, or Paragraph 1, Article 51 of the Narcotics and Psychotropic Control Law, the Group’s
performance may be affected.

(ii) Easing of drug sales regulations
In sales of over-the-counter (OTC) drugs, the Pharmaceutical and Medical Device Law classifies drugs into
different categories based on risk. Only qualified pharmacists are permitted to sell drugs requiring guidance andcategory 1 drugs, while registered sellers, as well as pharmacists, are permitted to sell category 2 and category
3 drugs.
In addition, the “Law for Partial Revision of the Pharmaceutical Affairs Law” (enacted June 12, 2014) ended
restrictions on the sale of OTC drugs online. Factors such as the entry into the market of firms from otherindustries as a result of a continuing trend in the future to deregulate drug sales may affect the Group’s
performance.

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AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

2) Details of business
The Group’s dispensing pharmacy business operates a chain of dispensing pharmacies.
As the dispensing pharmacy business accounted for 89.9% of net sales in the fiscal year under review, weplan to continue the multi-store operation mainly based on dispensing pharmacies. Accordingly, the Group’s
operating results may be affected by the success or failure of the store opening policies and by trends in store
openings by competitors in the same industry.
Furthermore, sales of dispensing pharmacies significantly depend on the medical institutions that write
prescriptions. Therefore, uncertainties such as the issuance of non-hospital prescriptions by the medical
institutions or suspension / discontinuation of operations thereof may affect the Group’s performance.
3) Industry trends
The revenues in our dispensing pharmacy business come from pharmacy operations involving the dispensing
and supplying of drugs based on prescriptions. The drug prices and dispensing fees are set by the Ministry of
Health, Labour and Welfare. As a way to contract medical expenses, both medical treatment fees and drug
prices are being revised incrementally. In the future as well, changes in profit structure resulting from factors
such as revisions in the medical treatment fee system could continue to affect the Group’s performance andfinancial position.
4) Securing qualified staff
Dispensing pharmacies and drugstores (Stores for Category 1 Drugs) are required by the Pharmaceutical andMedical Device Law to have a pharmacist on site; the Pharmacists Law stipulates that the dispensing of drugs
must be handled by a pharmacist. The Group continues to have a policy of expansion by aggressively opening
new stores, but if it becomes difficult to secure qualified pharmacists, this could affect our store openings andthe Group’s performance.
5) Risks of loss of trust in the Company(i) Dispensing operation
In our dispensing pharmacy business, pharmacists dispense and supply prescription drugs that affect thehuman body. This business carries the risk that medical accidents might be caused through dispensing errors.
The Group recognizes that any medical accidents could have a severely damaging effect on society’s
confidence in the Group, and we place the highest priority on measures to avoid the risk from all aspects.
Primary risk prevention measures are as follows.
•

Training programs for newly graduated pharmacists and mid-career pharmacists when joining theCompany•

A continuing training program aimed at improving skills of pharmacists•

Pharmacy manager conferences attended by all pharmacy managers, to nurture supervisors•

Development of a dispensing error prevention system (PhAIN) that uses Personal Digital Assistants(PDAs) developed with a dispensing equipment manufacturer. Development and introduction ofpharmacy equipment that makes use of information technology, such as the automation ofdispensing operations.

•

Use of in-house manuals for the dispensing operation and a system of observing rules set by theInternal Audit Office•

Establishment of a Safety Policy Office specializing in measures to prevent dispensing errors(ii) Protection of personal data
We possess patient data in the dispensing pharmacy business, including medical histories and prescription
information, and we possess personal data in the drug and cosmetic store business obtained from the Ainz Point
Club Card and Tulpe Mobile Club.
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AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

The Group takes all possible steps to protect personal data through personal information protection systems
and the rigorous enforcement of rules on the handling of such information. Also, key subsidiary AIN
PHARMACIEZ INC. has acquired Privacy Mark accreditation in the healthcare, medical and social service fields.
However, we believe it is possible that any accidental or illegal leakage of personal data may not only affect
the Group’s performance but also lead to a loss of society’s confidence in the Group.
6) Risk in business strategy
The Group has promoted the expansion of the business scale of dispensing pharmacies through actively
promoting new store openings and M&A.
Our basic policies regarding M&A strategy require us to carefully examine target companies and determine
the amount to be paid for acquisitions thereof in order to stably secure a profitability level that exceeds theamortization of goodwill to be incurred. If matters do not go as planned, however, we may incur losses on
valuation of shares in subsidiaries and impairment losses on goodwill, which may have an adverse impact on
the Group’s operating results and financial position.
7) Interest rate risks
In the Group’s promotion of business expansion based on actively promoting new store openings and M&A,
costs for ordinary store openings are covered by internal funds within the range of operating cash flow, while inlarge-scale M&A, costs are sometimes financed by borrowings from financial institutions.
In order to ensure flexible access to funds to support these activities, the Group maintains a certain level ofliquidity on its balance sheet. As of the end of the fiscal year under review, cash on hand and in banks totaled¥22,647 million, compared with a total balance of short- and long-term debt of ¥20,544 million.
We focus on possibility of return on investment and seek to reduce interest-bearing debts through efficientinvestment in implementing M&A deals. However, if the Group fails to secure an adequate return on its M&A
investment, or due to interest rate fluctuations associated with conditions in financial market, the Group’s
financial position and operating results including interest payable may be affected.

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AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

2. State of the GroupThe Group consists of AIN HOLDINGS INC. (the Company), 62 subsidiaries and one affiliated company.
(1) Dispensing pharmacy business
AIN PHARMACIEZ INC., AIN MEDIO Inc., DAICHIKU Co., Ltd., Asahi Pharmacy Co., Ltd, MEDIOPHARMACY Inc., NP HOLDINGS Co., Ltd. and 48 other consolidated subsidiaries operate dispensing
pharmacies in this business.
MEDIWEL Corp. is engaged in a medical-related consulting business and staff dispatching/introduction,
primarily of doctors and pharmacists, Medical Development Co., Ltd. is engaged in a medical-related consulting
business, and WHOLESALE STARS Co., Ltd. and SS Co., Ltd. sell generic drugs and other merchandise.
The Group adopted a holding company system on November 1, 2015. Effective the same date, the Company’s
name was changed from AIN PHARMACIEZ INC. to AIN HOLDINGS INC. Also effective the same date, thecompany name of Ain Company Split Preparation Co., Ltd. was changed to AIN PHARMACIEZ INC., which was
included in the scope of consolidation from the fiscal year under review due to the transfer of rights andobligations related to all the Group's operations, excluding business management divisions, following the
adoption of the holding company system.
(2) Drug and cosmetic store business
AIN PHARMACIEZ INC engages in the management of drugstores (sales of drugs, quasi-drugs, cosmetics,
food, general merchandise, etc.), and in consulting on the opening of shopping centers in this business.
(3) Other businesses
AIN PHARMACIEZ INC, Medical Development Co., Ltd., JAPAN MEDICAL DEVELOPMENT Co., Ltd. andthree other consolidated subsidiaries are in the building leasing business in this business.
AYURA LABORATORIES INC. sells cosmetics and others.

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AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

An organization chart of the business is as follows.

Notes: *1 consolidated subsidiary*2 affiliated company not accounted under the equity method*3 non-consolidated subsidiary- 10 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

3. Management Policies(1) Basic management policies of the Company
The Company’s main businesses are the dispensing pharmacies business, which dispense based onprescriptions, and the drug and cosmetic store business of selling products, primarily pharmaceuticals andcosmetics. Because both of these businesses contribute to people’s health, we bear an important social
responsibility.
We believe the Company’s mission is not only to grow its profits and increase shareholder value throughaggressively opening new stores as the separation of dispensary from medical practice improves, but also towork for continuous improvements in safety and specialized skills in this business, given that we are a Company
that can affect people’s lives.
Accordingly, our basic management policy is “to fulfill our social mission by working to eliminate medicine
dispensing errors and other business risks, and by creating pharmacies that customers can be confident invisiting, while placing weight on actively expanding the business in accordance with market conditions.”(2) Target management indicators
While working to expand our corporate scale by actively opening new stores, the Group also focuses on
strengthening its financial structure and increasing shareholder value.
In the fiscal year under review, the Group achieved ROA of 6.2% and ROE of 15.6%, attaining its targets of
4.5% and 15.0%, respectively.
(3) The Group’s medium- to long-term management strategies
The Group’s core businesses are the nationwide development of dispensing pharmacies through active newstore openings and M&A activities, and the development of urban drug stores, focusing primarily on drugs andcosmetics, in major cities across Japan. We aim both to expand the scale of these businesses and to increase
shareholder value.
In the dispensing pharmacy business, each Group company will continue to work on developing high valueadded “dispensing pharmacies at the heart of local communities.” The Group will also actively implement an
M&A strategy based on due diligence of potential candidates.
The Group has a policy of expanding still further the utilization of generic drugs and has actively promoted
their greater utilization through a sales system for generic drugs at WHOLESALE STARS Co., Ltd., awholesaling subsidiary that specializes in generic drugs, and increased efforts to educate patients throughout
all Group pharmacies.
In addition, we will work to assure the safety of our patients, to improve customer service and to increasebusiness efficiency by reinforcing education and training, and by developing and introducing medicine
dispensing equipment using the latest technology.
In the drug and cosmetic store business, the Group is aiming for further growth by expanding its chain of ainz
& tulpe urban drug stores to cities across Japan, specializing in drug and cosmetics products and creating aclear difference with competing drugstores.
As a result of the above, our medium- to long-term management strategies are based on the following policies.
1) In dispensing pharmacies, we will work to increase the expertise of our pharmacists using Ain College andother improvements to training programs, actively participate in projects aimed at promoting home-based
healthcare and 24-hour dispensing services and encourage wider use of generic drugs, harnessing all theGroup’s capabilities to create advanced “dispensing pharmacies at the heart of local communities.”
2) In business development, we plan to open around 50 new pharmacies each year. We also aim to expand theGroup’s operations through business development using M&A.
3) We will actively promote the introduction into the Group of the latest dispensing equipment and developing- 11 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016dispensing technologies that make use of IT, and improve customer safety, service and the efficiency ofpharmacy management through the integrated application of individual devices and systems.
4) We will enhance our profitability with improving flexibility and operational efficiency through streamlining
measures such as organizational restructuring and personnel exchanges. We will also enrich mutuallycomplementary cooperative systems for operations that are common across multiple companies such as
business development system that suit their locations, recruitment of pharmacists and expanding the use ofgeneric drugs.
5) In the drug and cosmetic store business, we plan to open around five new ainz & tulpe urban drugstores eachyear in retail complexes in all Japan’s major cities, reinforce merchandise lineups based on local needs andcreate a clear difference with competing drugstores.
6) We aim to enhance the earnings capabilities of stores by using our loyalty point systems, Ainz Point Club
Card and Tulpe Mobile Club, to expand the customer base, and by implementing effective sales promotion
using a mix of online media, SNS and print media advertising.
(4) Issues to be addressed
Amid wide-ranging debate about the future of Japan’s non-hospital drug prescription system, the dispensing
pharmacy sector is being called on to contribute to community healthcare through the provision of high-quality
patient services, leading to a significant expansion in the traditional role and responsibilities of dispensing
pharmacies.
The Group will work to provide high-quality healthcare services. Specifically, we will continue to implement
our pharmacy-led project to improve operational efficiency at existing dispensing pharmacies, hire new
pharmacists, upgrade training programs and invest in facilities to enhance the functions of dispensing
pharmacies, and promote wider use of generic drugs using our specialist generic drug wholesale subsidiary
WHOLESALE STARS Co., Ltd. In addition, we will expand the business through new store openings and M&A,
continuing to implement our business strategy that maximizes economies of scale.
In the drug and cosmetic store business, we will reinforce the ainz & tulpe brand by accelerating openings of
new large-scale stores in urban retail complexes near stations, where customer traffic is likely to be higher.
We will also invest to expand the drug and cosmetic store business so that earnings are on par with thedispensing pharmacy business. Specifically, we will implement new initiatives, such as operating large-scalespecialist health and beauty retail complexes with ainz & tulpe as the key tenant.

4. 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.

- 12 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

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

AssetsCurrent assets
Cash on hand and in banks
Notes and accounts receivable
Merchandise
Supplies
Deferred tax assets
Short-term loans
Other accounts receivable
Other current assets
Allowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
LandConstruction in progress
Other property, plant and equipment
Accumulated depreciation
Other property, plant and equipment, net
Total property, plant and equipment
Intangible fixed assets
Goodwill
Other intangible fixed assets
Total intangible fixed assets
Investments and other assets
Investments in securities
Long-term loans
Deferred tax assets
Net defined benefit asset
Deposits and guarantees
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets- 13 -

Previous fiscal year
(As of April 30, 2015)

Current fiscal year
(As of April 30, 2016)

19,553,423
8,369,451
9,747,115
162,635
894,440
739,342
5,291,030
1,765,517(157,053)
46,365,901

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

21,191,691(9,513,155)
11,678,535
7,931,761
519,169
8,119,554(5,776,678)
2,342,875
22,472,342

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

26,340,056
1,283,021
27,623,077

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

2,872,382
1,369,265
984,239
12,8949,710,040
3,262,128(522,385)
17,688,566
67,783,986
114,149,888

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

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016
(Thousand yen)

Liabilities
Current liabilities
Accounts payable
Short-term debt
Accrued income taxes
Deposits received
Allowance for bonuses to employees
Allowance for bonuses to directors
Reserve for reward obligations
Provision for sales returns
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term debt
Lease obligations
Net defined benefit liability
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income (loss)
Unrealized holding gains (losses) on securities
Remeasurement of defined benefit plans
Total accumulated other comprehensive income (loss)
Non-controlling interests
Total net assets
Total liabilities and net assets- 14 -

Previous fiscal year
(As of April 30, 2015)

Current fiscal year
(As of April 30, 2016)

31,826,516
6,330,773
2,320,567
9,052,200
1,353,380
11,751
338,824–
3,199,345
54,433,358

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

7,640,133
1,341,266
1,636,186
1,052,395
11,669,982
66,103,340

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

8,682,976
7,872,970
31,639,894(419,311)
47,776,529

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

227,061(75,210)
151,851
118,166
48,046,547
114,149,888(63,296)
84,867
21,57065,74853,324,613
139,888,239

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

(2) Consolidated statement of income and comprehensive income
Consolidated statement of income(Thousand yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses
Promotion expenses
Salaries, allowances and bonuses
Provision of allowance for doubtful accounts
Provision for bonuses
Provision for directors’ bonuses
Retirement benefit expenses
Provision for reward obligations
Legal and employee benefits expenses
Correspondence and transportation expenses
Lease expenses
Rent expenses
Depreciation expenses
Amortization of goodwill
Taxes
Other
Total selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gains on investments in partnership
Commissions received
Real estate rental revenue
Gains on donations of fixed assets
Consignment income
Technical advisory fee
Co-sponsor fee
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expenses
Losses on sales of accounts receivables
Real estate rental expenses
Provision of allowance for doubtful accounts
Other non-operating expenses
Total non-operating expenses
Ordinary income- 15 -

Previous fiscal year
(May 1, 2014
to April 30, 2015)
187,904,956
158,943,804
28,961,151

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

1,103,910
326,358
3,727,701
148,140
294,028
11,751
89,994
338,824
1,077,826
522,911132,016
2,955,173
1,172,814
1,363,887
891,5033,352,159
17,509,004
11,452,147

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

66,33733,153
108,785
50,156
159,217
12,672
157,150
54,879–192,198
834,551

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

84,087
81,17688,653
282,600
52,334
588,851
11,697,847

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

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016
(Thousand yen)Previous fiscal year
(May 1, 2014
to April 30, 2015)
Extraordinary income
Gains on sales of fixed assets
Gains on sales of investments in securities
Compensation income
Penalty income
Gain on bargain purchase
Other extraordinary income
Total extraordinary income
Extraordinary losses
Losses on disposal and sales of fixed assets
Losses on devaluation of investments in securities
Impairment losses on fixed assets
Directors’ retirement benefits
Other extraordinary losses
Total extraordinary losses
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent- 16 -

Current fiscal year
(May 1, 2015
to April 30, 2016)

21,736
7,141
–
–
–
1,241
30,11824,263–
20,197
68,19658,87918,565
190,101

345,891
6,776
371,036
106,960
64,840895,505
10,832,460
4,428,100
143,526
4,571,626
6,260,833
63,662
6,197,170

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

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

Consolidated statement of comprehensive income

ProfitOther comprehensive income
Unrealized holding gains (losses) on securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Total comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 17 -

Previous fiscal year
(May 1, 2014
to April 30, 2015)
6,260,833(Thousand yen)
Current fiscal year
(May 1, 2015
to April 30, 2016)
7,961,609

192,471(16,985)
175,485
6,436,319
6,372,656(290,358)
160,077(130,280)
7,831,328
7,786,836

63,66244,491AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

(3) Consolidated statement of changes in net assets
Previous fiscal year (May 1, 2014 to April 30, 2015)(Thousand yen)
Shareholders’ equity
Common stock
Balance at the beginning ofcurrent year

Capital surplus

8,682,976

Retained earnings

7,872,970

Cumulative effect ofchanges in accounting
policies
Balance at the beginning ofcurrent year reflectingchanges in accounting
policies

Total shareholders’equityTreasury stock

26,007,464(417,338)

42,146,073

386,510

8,682,976

7,872,970

386,510

26,393,975(417,338)

42,532,583

Net changes during the year
Cash dividends paid

(951,251)(951,251)

Profit attributable toowners of parent

6,197,170

6,197,170

Acquisition of treasurystock(1,973)(1,973)Purchase of shares of
consolidated subsidiaries
Net change in items otherthan those inshareholders’ equity
Total changes during theyear
Balance at the end ofcurrent year––

5,245,919(1,973)5,243,945

8,682,976

7,872,970

31,639,894(419,311)

47,776,529

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

Remeasurements ofdefined benefit plans

34,590(58,224)

Total accumulated othercomprehensive income(loss)

Non-controllinginterests(23,633)

117,651

Cumulative effect ofchanges in accounting
policies
Balance at the beginning ofcurrent year reflectingchanges in accounting
policies

Total net
assets42,240,091
386,510

34,590(58,224)(23,633)

117,651

42,626,601

Net changes during theyear
Cash dividends paid

(951,251)

Profit attributable toowners of parent

6,197,170

Acquisition of treasurystock(1,973)Purchase of shares of
consolidated subsidiaries
Net change in items
other than those inshareholders’ equity

192,471(16,985)

175,485515

176,000

Total changes during theyear

192,471(16,985)

175,485515

5,419,946

Balance at the end ofcurrent year

227,061(75,210)

151,851

118,166

48,046,547- 18 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016
Current fiscal year (May 1, 2015 to April 30, 2016)(Thousand yen)
Shareholders’ equity
Common stock
Balance at the beginning ofcurrent year

Capital surplus

Retained earnings

Total shareholders’equityTreasury stock

8,682,976

7,872,970

31,639,894(419,311)

47,776,529

8,682,976

7,872,970

31,639,894(419,311)

47,776,529

Cumulative effect ofchanges in accounting
policies
Balance at the beginning ofcurrent year reflectingchanges in accounting
policies
Net changes during the year
Cash dividends paid

(951,228)(951,228)

Profit attributable toowners of parent

7,917,117

7,917,117

Acquisition of treasury
stock
Purchase of shares of
consolidated subsidiaries(1,505,125)(1,505,125)

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

(1,505,125)

6,965,888–

5,460,763

8,682,976

6,367,844

38,605,783(419,311)

53,237,293

Accumulated other comprehensive income
Valuation difference on
available-for-salesecurities
Balance at the beginning ofcurrent year

Remeasurements ofdefined benefit plans

Total accumulated othercomprehensive income(loss)

Non-controllinginterests

Total net
assets227,061(75,210)

151,851

118,166

48,046,547

227,061(75,210)

151,851

118,166

48,046,547

Cumulative effect ofchanges in accounting
policies
Balance at the beginning ofcurrent year reflectingchanges in accounting
policies
Net changes during theyear
Cash dividends paid

(951,228)

Profit attributable toowners of parent

7,917,117

Acquisition of treasury
stock
Purchase of shares of
consolidated subsidiaries
Net change in items
other than shareholders’equity(1,505,125)(290,358)

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

Total changes during theyear(290,358)

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

5,278,065

Balance at the end ofcurrent year

(63,296)

84,867(21,570)

65,74853,324,613- 19 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

(4) Consolidated statement of cash flows(Thousand yen)Previous fiscal year
(May 1, 2014
to April 30, 2015)
Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization of goodwill
Impairment losses on fixed assets
Impairment losses on investments in securities
Increase in allowance for doubtful accounts
Increase in reserve for reward obligations
Increase in defined benefit liability
Decrease in provision for sales returns
Increase in allowance for bonuses to employees(Decrease) increase in allowance for bonuses todirectors
Interest and dividend income
Interest expenses
Gains on investments in partnerships
Gains on donations of property, plant and equipment
Gain on bargain purchase(Losses) gains on sales of investments in securities
Losses on disposal and sales of fixed assets
Decrease in accounts receivable
Decrease in inventories
Increase in other assets
Decrease (increase) in other accounts receivable
Increase in accounts payable(Decrease) increase in other liabilities
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities- 20 -

Current fiscal year
(May 1, 2015
to April 30, 2016)

10,832,460
2,553,938
2,278,004
371,0366,776
419,514
6,508
114,834–
130,020

13,949,582
3,259,367
2,938,058
856,75312
565,851
48,750164,816(3,245)
104,808

(183)

1,839

(99,490)
84,087(108,785)(12,672)–(7,141)
324,155
455,881969,970(214,263)
414,967
1,544,935(116,508)
19,948,048
100,971(82,809)(5,126,261)
14,839,948(94,396)
96,209(143,030)(24,569)(58,879)475
384,827
236,989495,261(194,962)(600,967)
3,031,266
917,973
25,932,792
93,113(94,235)(4,579,309)
21,352,361

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016
(Thousand yen)Previous fiscal year
(May 1, 2014
to April 30, 2015)
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
Increase in other investments
Proceeds from withdrawal of time deposits
Payments for time deposits
Net cash used in investing activities
Cash flows from financing activities
Net decrease in short-term loans payable
Proceeds from long-term debts
Repayments of long-term debts
Repayments of lease obligations
Payments for purchase of treasury stock
Purchases of subsidiaries’ shares not resulting inchange in obtaining controls
Cash dividends paid
Net cash provided by financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Cash and cash equivalents at end of the year

- 21 -

Current fiscal year
(May 1, 2015
to April 30, 2016)(2,848,807)(7,407,367)

98,167(145,352)
559,547

709,572(10,981)
260,010(10,024,858)(10,954,789)(2,233,281)
2,655,247(6)
64(926,862)
665(1,862,825)
260,513(93,204)(14,560,990)(960,413)
74,392(10)
16,630(2,509,624)
66,895(298,512)
223,093(86,192)(20,877,296)(1,593,327)
8,650,097(5,082,420)(646,430)(1,973)(2,085,963)
12,987,518(5,619,816)(710,933)––(1,591,560)(951,251)374,694
653,651
18,735,445
19,389,097(951,228)
2,028,017
2,503,082
19,389,097
21,892,179

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

(Segment Information, etc.)
a. Segment information
1. Description of the reportable segments
The Company’s reportable segments consist of those of its components for which it is possible to obtainseparate financial information that is examined by its Board of Directors on a regular basis for the purpose of
deciding on the allocation of corporate resources and assessing business performance.
The Group’s business comprises three units that together represent its main business units, namely,
dispensing pharmacy business that consists of operation of dispensing pharmacies, selling of generic drugs,
recruiting and consulting services, and drug and cosmetic store business that consists of the management ofurban and suburban drug and cosmetic stores as well as other businesses that consist mainly of real-estateleasing services. The formulation and examination of business strategy is conducted individually for eachbusiness.
Accordingly, the reportable segments of the Group are composed of three units, namely, dispensing
pharmacy business, drug and cosmetic store business and other businesses.
2. Methods to determine the amounts of net sales, income or losses, assets, liabilities and other items byreportable segment
The methods used for accounting for the reportable business segments are generally similar to thosedescribed in the Basic Important Matters for Preparation of Consolidated Financial Statements.
The income figures for the reportable segments are expressed at the ordinary income level. Intersegment
sales and transfers are based on prevailing market prices.

- 22 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

3. Sales, income (loss), assets, liabilities and other items for each reportable segment
I. Previous fiscal year (May 1, 2014 to April 30, 2015)(Thousand yen)
Reportable segments
Adjustments(Note) 1

Consolidated(Note) 2

187,904,956–

187,904,956

323,425

323,425(323,425)–

17,803,967

1,361,118

188,228,382(323,425)

187,904,956

14,449,163

117,708(614,986)

13,951,885(2,254,037)

11,697,847

105,238,155

8,852,226

6,852,940

120,943,323(6,793,434)

114,149,888

Depreciation
and amortization

1,810,482

206,693

131,898

2,149,074

146,658

2,295,733

Amortization of
goodwill

2,271,358

–

6,646

2,278,004–

2,278,004

Impairment losses

166,136

144,352

60,547

371,036–

371,036

Increase of tangible
and intangible assets

2,525,818

553,667

1,268,195

4,347,681

40,414

4,388,095

Dispensing
pharmacy

Drug andcosmetic
store

Other

Sales to third parties

169,063,296

17,803,967

1,037,692

Intersegment sales––

Total sales

169,063,296

Segment income (loss)
Segment assets

Total

Sales

Other

Notes:

1. Segment income (loss) in “Adjustments” totaling (¥2,254,037 thousand) includes ¥2,007,602 thousand in overall
group expenses, ¥343,514 thousand in losses that may not be allocated to the reporting segments, and(¥97,079
thousand) in elimination due to intersegment transactions.
The overall group expenses consist mainly of expenses associated with the administrative divisions of the parent
company, such as general affairs and accounting divisions.
Segment assets in “Adjustments” totaling (¥6,793,434 thousand) consist mainly of assets associated with theadministrative divisions of the parent company and the difference in elimination of intersegment transactions.
2. Segment income is adjusted with the ordinary income of consolidated statements of income.

- 23 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

II. Current fiscal year (May 1, 2015 to April 30, 2016)(Thousand yen)
Reportable segments
Adjustments(Note) 1

Consolidated(Note) 2

234,843,598–

234,843,598

350,027

350,027(350,027)–

20,884,332

3,299,650

235,193,626(350,027)

234,843,598

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

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

15,158,018

139,120,411

7,384,342

9,882,767

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

139,888,239

Depreciation
and amortization

2,070,927

262,688376,5632,710,179

171,3032,881,482

Amortization of
goodwill

2,921,958–

16,1002,938,058–

2,938,058

Impairment losses

520,333

151,897–672,230

184,523856,753

Increase of tangible
and intangible assets

5,607,150

1,108,118

3,353,108

10,068,377

322,432

10,390,810

Dispensing
pharmacy

Drug andcosmetic
store

Other

Sales to third parties

211,009,642

20,884,332

2,949,622

Intersegment sales––

Total sales

211,009,642

Segment income (loss)
Segment assets

Total

Sales

Other

Notes:

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

- 24 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016b. Related information
Previous fiscal year (May 1, 2014 to April 30, 2015)
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 because the Group had no sales to external customers outside Japan
during the fiscal year.
(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, 2015 to April 30, 2016)
1. Information by product and service
This disclosure has been omitted because the same information is disclosed under Segment Information.
2. Information by region(1) Net sales
This disclosure has been omitted as the Group’s sales to external customers in Japan accounted for morethan 90% of sales on the consolidated statement of income.
(2) Property, plant and equipment
This disclosure has been omitted because the Group had no property, plant and equipment located outside
Japan at the balance sheet date.

c. Information regarding impairment losses of fixed assets for each reported segment
Previous fiscal year (May 1, 2014 to April 30, 2015)
This disclosure has been omitted because the same information is disclosed under Segment Information.
Current fiscal year (May 1, 2015 to April 30, 2016)
This disclosure has been omitted because the same information is disclosed under Segment Information.

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AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2016

d. Information about goodwill amortization amount and year-end balance for each reportable segment
Previous fiscal year (May 1, 2014 to April 30, 2015)(Thousand yen)
Dispensing
pharmacybusiness

Drug andcosmetic store
business

Amortization of current fiscal year

2,271,358

Balance at the end of current fiscal year

26,286,881

Otherbusinesses

Corporate /Eliminations

–

6,646

–

2,278,004–

53,175–

26,340,056

Total

Current fiscal year (May 1, 2015 to April 30, 2016)(Thousand yen)
Dispensing
pharmacybusiness

Drug andcosmetic store
business

Amortization of current fiscal year

2,921,958

Balance at the end of current fiscal year

33,111,221

Otherbusinesses

Corporate /Eliminations–

16,100–2,938,058–

226,150–

33,337,372

Total

e. Information about gains on bargain purchase for each reported segment
Previous fiscal year (May 1, 2014 to April 30, 2015)
There are no applicable matters to be reported.
Current fiscal year (May 1, 2015 to April 30, 2016)
Effective from the fiscal year under review, Kyowa Pharmacy Co., Ltd. in the dispensing pharmacy business
was included in the scope of consolidation following the acquisition of shares. In the fiscal year under review,gain on negative goodwill arising from this acquisition totaled ¥58,879 thousand.

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