Summary of Financial Statements for the Third Quarter of Fiscal Year Ending April 2022
[Japan GAAP] (Consolidated)
March 4, 2022
Name of listed company:

AIN HOLDINGS INC.

Exchange listed on:First Section of Tokyo Stock Exchange and Sapporo Securities Exchange

Code number:

9627

URL:

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

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:
March 17, 2022-

Start of dividend payment:
Supplementary documents for quarterly
results:
Quarterly results briefing:

Yes (Supplementary materials for the quarterly results are disclosed on the Company’s website
appropriately as the financial statements.)

No(Amounts are rounded down to the nearest million yen.)
1. Consolidated results for the third quarter of fiscal year ending April 30, 2022 (May 1, 2021 to January 31, 2022)(1) Consolidated operating results(Percentage figures show year-on-year changes.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Million yen% Million yen%
Million yen% Million yen%
Nine months ended January 31, 2022

234,610

6.6

37.7

6,231

36.2

Nine months ended January 31, 2021
220,1350.0
6,813(45.3)
7,845 (39.7)(Note) Comprehensive income:Nine months ended January 31, 2022: ¥6,229 million (+35.3%)
Nine months ended January 31, 2021: ¥4,603 million (-35.2%)

4,575(35.7)

Earnings
per share
Yen

10,21449.9

10,800

Diluted earnings
per share
Yen

Nine months ended January 31, 2022

176.89-Nine months ended January 31, 2021

129.16-(2) Consolidated financial position
Total assets
As of January 31, 2022
As of April 30, 2021
(Reference) Shareholders’ equity:

Net assets

Shareholders’ equity ratio

Million yen

Million yen%

207,994
203,662

118,11356.8

115,837

56.8

As of January 31, 2022: ¥118,051 million As of April 30, 2021: ¥115,758 million

2. Dividends

Year ended April 30, 2021

End of firstquarterYen-

End of second
quarter
Yen
0.00

0.00
Year ending April 30, 2022
Year ending April 30, 2022
(forecast)(Note) Revision to the most recently announced dividend forecasts: No

Dividend per share
End of third
quarterYen-

End of year

Full year

Yen

Yen

55.00

55.00

55.00

55.00

-

3. Consolidated financial forecasts for the fiscal year ending April 30, 2022 (May 1, 2021 to April 30, 2022)(Percentage figures show year-on-year changes.)
Profit attributable toEarnings
Net sales
Operating income
Ordinary income
owners of parent
per share
Million yen%
Million yen%
Million yen%
Million yen%
Yen
Full year

315,000

6.0

15,00037.2

15,500

22.5

8,300

23.9

234.28(Note) Revision to the most recently announced consolidated financial forecasts: No*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 (3) Notes on quarterly consolidated financial
statements” on page 8 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.:
Yes2) Changes in accounting principles other than 1):
No3) Changes in accounting estimates:
No4) Restatement of revisions:No(4) Number of outstanding shares (common stock)1) Number of outstanding
shares (including treasury
As of January 31, 2022 35,428,212 shares As of April 30, 2021
stock):
2) Number of shares held in
As of January 31, 2022
300,911 shares As of April 30, 2021
treasury:
3) Average number ofNine months ended
Nine months ended
35,227,303 sharesshares outstanding:January 31, 2022
January 31, 2021

35,428,212 shares
891 shares
35,427,426 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 Third Quarter of the Fiscal Year Ending April 30, 2022

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) Notes on quarterly consolidated financial statements.................................................................................................... 8(Notes on the premise of a going concern) ................................................................................................................... 8(Notes on significant changes in the amount of shareholders’ equity) ............................................................................ 8(Application of specified accounting methods for the preparation of quarterly consolidated financial statements) ............ 8(Changes in accounting policies) ................................................................................................................................. 8(Segment information, etc.) ......................................................................................................................................... 9

1

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2022

1. Qualitative information on consolidated results for the period under review(1) Consolidated operating results
During the first nine months of the current fiscal year (May 1, 2021 to January 31, 2022), the Japanese economy continued
to face challenging conditions due to the COVID-19 pandemic. Although there were signs of a pickup in consumer spending,the outlook remained uncertain.
In this economic environment, the Group put priority on ensuring the safety of patients, customers and employees andimplemented measures to prevent the spread of infection in pharmacies and stores as part of concerted efforts to ensure
the continued provision of healthcare and retail services. In the dispensing pharmacy business, we provided medical antigen
test kits and took other active steps to prevent the spread of infection in the community. We have selected “contribute to
local healthcare” as one of the important issues the Group should address (materiality). We aim to be a key part of local
healthcare infrastructure for the whole community by continuing to provide pharmaceutical products and healthcare services,
whatever the conditions.
In December 2021, we formulated the AIN Group Human Rights Policy as part of efforts to create a “sound management
base,” another of the Group’s materiality issues. This policy reaffirms our strong belief that respect for human rights must
underpin all our business activities in order to establish a “sound management base.” Going forward, we will continue to
conduct ourselves and implement measures in line with this policy.
Through businesses that contribute to human health and beauty, the Group will continue to strive to deliver sustainablegrowth, create social, environmental and economic value, and realize sustainability management in order to continue
supporting the health and happiness of our customers.
In the first nine months of the fiscal year, net sales increased 6.6% to ¥234,610 million, operating income increased 49.9%
to ¥10,214 million, ordinary income increased 37.7% to ¥10,800 million, and profit attributable to owners of parent increased
36.2% to ¥6,231 million.
Financial results by business segment are as follows.
(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 reinforcing
pharmaceutical management and guidance and home-based healthcare, backed by integrated and continuous monitoringof patient medication data through cooperation with local medical service providers and the use of patient medication
notebooks and other means. In addition, we are seeing a growing need for different ways of receiving medicines, spurredby the pandemic and other factors. In response, we are making preparations to ensure safe and secure delivery of medicines
to patients. Specifically, in October 2021, we conducted Japan’s first-ever trial of prescription drug deliveries using drones,in accordance with drone delivery guidelines formulated by the Cabinet Secretariat, the Ministry of Health, Labour andWelfare and the Ministry of Land, Infrastructure, Transport and Tourism in June 2021, and in January 2022 we expanded thetrial area for same-day prescription medicine deliveries.
In business development, the Group is targeting further business expansion through a strategy of actively opening large
pharmacies and using M&A deals that emphasize investment returns, while also improving pharmacy operating efficiency.
As a result, for the first nine months of the fiscal year, the dispensing pharmacy business reported sales of ¥209,793
million, up 8.0% year on year, and segment income of ¥17,784 million, up 29.2%, due to recovery of prescription volume ofexisting dispensing pharmacies and steady growth of dispensing pharmacies opened last fiscal year.
During the same period, the Group opened a total of 40 dispensing pharmacies, including those acquired through M&A
deals, and closed four dispensing pharmacies and transferred four, resulting in a total of 1,097.
(Cosmetic and drug store business)
The cosmetic and drug store business continued to face a challenging market environment due to the impact of the COVID19 pandemic.
The Group continued to create appealing retail displays by strengthening product lineups and worked to improve
convenience and service levels for customers using the official AINZ & TULPE WEBSTORE e-commerce site. Also, targeting
post-pandemic opportunities, the Group pushed ahead with store openings in locations with good prospects for profitability
and optimized costs.
As a result, for the first nine months of the fiscal year, the cosmetic and drug store business reported an increase in salesof 6.3% year on year to ¥15,286 million, and segment loss was ¥1,474 million compared with the loss of ¥1,507 million ayear earlier.
During the same period, the Group opened six AINZ & TULPE cosmetic and drug stores and closed one store, resulting
in a total of 74 cosmetic and drug stores at the end of the third quarter.

2

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2022

(Other businesses)
Net sales from other businesses decreased 16.8% year on year to ¥9,601 million and segment loss was ¥108 million
compared with the loss of ¥479 million a year earlier.
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020),
etc. from the beginning of the first quarter. For more details, please refer to “2. Quarterly consolidated financial statements
and major notes, (3) Notes on quarterly consolidated financial statements, (Changes in accounting policies) and (Segment
information, etc.).
(2) Consolidated financial position
The balance of total assets at the end of the third quarter increased by ¥4,332 million from the end of the previous fiscal
year to ¥207,994 million. This mainly reflected declines for notes and accounts receivable - trade and land, outweighed byincreases for inventories and leasehold and guarantee deposits.
The balance of liabilities increased ¥2,055 million to ¥89,881 million.
The balance of short- term and long-term borrowings decreased by ¥3,121 million to ¥8,846 million.
Total net assets increased ¥2,276 million to ¥118,113 million and the shareholders’ equity ratio was 56.8%, unchanged
from the end of the previous period.
(3) Forecast of consolidated financial results and other forward-looking information
The Group has not revised its earnings forecasts for the full fiscal year, announced on June 4, 2021.

3

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2022

2. Quarterly consolidated financial statements and major notes(1) Quarterly consolidated balance sheet

Fiscal year endedApril 30, 2021
(As of April 30, 2021)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise
Supplies
Short-term loans receivable
Accounts receivable - other
Other
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)
Nine months ended
January 31, 2022
(As of January 31, 2022)

55,271
13,47514,018
266
144
9,284
3,936
96,39855,641
10,707
16,727
245
399
8,270
2,846
94,837

16,270
10,3903,568
30,22917,984
8,745
3,904
30,63439,057
3,609
42,66638,172
4,444
42,617

2,697
4,415
20,3198,680(1,743)34,368107,264
203,662

3,204
4,614
22,893
10,490(1,298)39,904
113,157
207,994

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2022

Fiscal year endedApril 30, 2021
(As of April 30, 2021)

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

5(Million yen)
Nine months ended
January 31, 2022
(As of January 31, 2022)

46,758
3,670
2,157
13,979
2,594
16
461
–
4,522
74,16052,2762,746
2,189
15,262
1,378
8
–
526
3,604
77,991

8,297
3,329
2,037
13,66487,825

6,100
3,568
2,221
11,88989,881

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

21,89420,50077,800(2,018)118,177

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

(28)
(97)
(126)
61
118,113207,994

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2022

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statements of income(Million yen)
Nine months ended
January 31, 2022
(May 1, 2021 toJanuary 31, 2022)

Nine months ended
January 31, 2021
(May 1, 2020 toJanuary 31, 2021)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Commissions received
Real estate rental revenue
Consignment income
Subsidy income
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sales 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
Gain on sale of shares of subsidiaries and associates
Surrender value of insurance policies
Gain on step acquisitions
Other
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses
Loss on temporary store closures
Loss on cancellation of rental contracts
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

6

220,135
186,976
33,15926,346
6,813

234,610
198,11036,50026,286
10,214

33
43
15
134
141
466

31
35
11
334
132
92

–

2

454
1,288

316
957

37
58
113
47
256
7,845

34
63
215
57
370
10,800

18
383
111
11
–
30
555

200
13
–
4
131
16
366

216
64
52
–
163
497
7,903
3,366
4,537
(38)
4,575

194
61
–
119
54
429
10,737
4,523
6,214
(16)
6,231

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2022

Quarterly consolidated statements of comprehensive income
Nine months ended
January 31, 2021
(May 1, 2020 toJanuary 31, 2021)

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

7(Million yen)
Nine months ended
January 31, 2022
(May 1, 2021 toJanuary 31, 2022)

4,537

6,214

27
38
65
4,603
4,641

(15)
30
15
6,229
6,246

(38)

(16)

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2022

(3) 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)
The Company is repurchasing a total of 300,000 shares in accordance with a resolution approved by the Board of Directors
at a meeting on June 7, 2021 (200,000 shares) and a resolution approved by the Board of Directors at a meeting on
December 6, 2021 (100,000 shares). As a result of the repurchases, during the first three quarters of the current fiscal year,
the Company’s treasury shares increased by ¥2,015 million, resulting in a balance of ¥2,018 million at the end of the period.
(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.
(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020;“Revenue Recognition Standard”), etc. from the beginning of the first quarter of the fiscal year ending April 30, 2022. Under
the new standard, the Company recognizes revenue when promised goods or services are transferred to a customer, withthe amount expected to be received upon exchange of the goods or services recognized as revenue.
The main changes arising from the application of the new accounting standard are as follows. With respect to reward
points provided to customers at the time of sale through the customer loyalty program service, the Company previously
booked the amount equivalent to the number of points expected to be redeemed in the future as allowance for point cards
and allowance for point cards was recorded under selling, general and administrative expenses. Under the new accounting
standard, the Company identifies points awarded as performance obligations and allocates the transaction price based on
the stand-alone selling price calculated by taking into actual redemption rates and other factors. As a result of the change,some sales promotion expenses and other expenses are deducted from sales.
The application of the Revenue Recognition Standard is subject to the transitional treatment provided for in the
supplementary provisions of Paragraph 84 of the Revenue Recognition Standard. If the new accounting policy is appliedprior to the beginning of the first quarter, the cumulative effect of the retroactive application is added to or subtracted fromretained earnings at the beginning of the first quarter and the new accounting policy is applied to balances at the beginningof said period.
As a result, in the third quarter, the application of the accounting standard reduced sales by ¥902 million, reduced selling,
general and administrative expenses by ¥912 million and increased operating profit, ordinary profit and profit before income
taxes each by ¥9 million. In addition, the balance of retained earnings at the start of the fiscal year increased by ¥10 million.
As a result of the application of the Revenue Recognition Standard, “provision for point card certificates” included in“current liabilities” in the consolidated financial statements for the previous fiscal year has been included in “contract liabilities”
from the first quarter of the current fiscal year. In accordance with the transitional treatment stipulated in Article 89-2 of the
Revenue Recognition Standard, figures for the previous fiscal year have not been restated to reflect the new presentation
approach. Furthermore, in accordance with the transitional treatment stipulated in Paragraph 28-15 of the AccountingStandard for Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020), information on the breakdown ofrevenue generated from contracts with customers for the third quarter of the previous fiscal year is not shown.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4, 2019;“Fair Value Measurement Standard”), etc. from the beginning of the first quarter. In accordance with the transitional treatment
stipulated in Paragraph 19 of the Fair Value Measurement Standard and Paragraph 44-2 of the “Accounting Standard for
Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), the Company has decided to apply the new accounting
policies in the Fair Value Measurement Standard going forward. These changes have no impact on the Company’s quarterly
consolidated financial statements.

8

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2022

(Segment information, etc.)
I Nine months ended January 31, 2021 (May 1, 2020 to January 31, 2021)
1. Net sales and income (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

194,284

14,386

11,464

220,135-

220,135(2) Intersegment sales

-

-

78

78

(78)

-

Total sales

194,284

14,386

11,542

220,213(78)

220,135

Segment income (loss)

13,769(1,507)(479)

11,782(3,936)

7,845

Total

Sales

Notes:

1. The adjustment of ¥(3,936) million to segment income (loss) includes ¥4,764 million in corporate expenses, ¥(947)
million in (income) loss that are not allocated to reportable segments, and ¥120 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 income (loss) is adjusted with the ordinary income 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.

9

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2022

II Nine months ended January 31, 2022 (May 1, 2021 to January 31, 2022)
1. Net sales and income (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

209,793

15,2869,530

234,610-

234,610(2) Intersegment sales

-

-

71

71

(71)

-

Total sales

209,793

15,286

9,601

234,681(71)

234,610Segment income (loss)

17,784(1,474)(108)

16,202(5,401)

10,800

Total

Sales

Notes:

1. The adjustment of ¥(5,401) million to segment income (loss) includes ¥6,195 million in corporate expenses, ¥(947)
million in (income) loss that are not allocated to reportable segments, and ¥152 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 income (loss) is adjusted with the ordinary income 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.
3. Changes in reportable segments
As explained in Changes in accounting policies, the accounting treatment for revenue recognition has changed due tothe application of the Accounting Standard for Revenue Recognition, etc. from the beginning of the first quarter. As result,the calculation method for profit and loss in business segments has also changed.
Compared with the previous method, in the third quarter, the new method reduced sales in the cosmetic and drug store
business segment by ¥866 million and increased segment profit by ¥9 million, and reduced sales in the other businesses
segment by ¥36 million.

10