Summary of Financial Statements for the Third Quarter of Fiscal Year Ending April 2013
[Japan GAAP] (Consolidated)
February 26, 2013
Name of listed company:

AIN PHARMACIEZ INC.

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

Code number:

9627

URL:

http://www.ainj.co.jp/

Representative:
Inquiries:

Kiichi Otani, President and Representative Director
Toshihide Mizushima, Senior Managing Director and Chief Director of Administration
TEL: +81-11-783-0189
Date of filing quarterly securities report:
March 15, 2013
Start of dividend payment:–

Supplementary documents for quarterly results:

No

Quarterly results briefing:No(Amounts are rounded down to the nearest million yen.)
1. Consolidated results for the third quarter of fiscal year ending April 30, 2013 (May 1, 2012 to January 31, 2013)(1) Consolidated operating results(Percentage figures show year-on-year changes.)
Net sales
Operating income
Ordinary income
Net income
Nine months ended January 31,
2013
Nine months ended January 31,
2012(Note) Comprehensive income:Million yen%

Million yen%

Million yen%

Million yen%

114,671

8.8

6,830

(7.3)

7,262

(4.3)

3,689

0.4

105,389

10.7

7,370

29.4

7,584

31.6

3,674

25.8

Nine months ended January 31, 2013: ¥3,875 million (+7.6%)
Nine months ended January 31, 2012: ¥3,600 million (+24.7%)
Net income
per share

Nine months ended January 31,
2013
Nine months ended January 31,
2012

Diluted net income
per share
Yen

Yen

231.47–230.48–(2) Consolidated financial position

As of January 31, 2013
As of April 30, 2012
(Reference) Shareholders’ equity:

Shareholders’equity ratio

Net assets

Total assets

Net assets per
share

Million yen

Million yen%

Yen

96,41036,82438.2

2,308.29

85,90833,74539.2

2,113.79

As of January 31, 2013: ¥36,795 million

As of April 30, 2012: ¥33,695 million

2. Dividends
Record dateYear ended April 30, 2012

End of firstquarterYen–

End of second
quarter
Yen
0.00

Dividend per share
End of third
quarter
Yen
–

–
0.00
Year ending April 30, 2013
Year ending April 30, 2013
(forecast)(Note) Revision to the most recently announced dividends forecasts: No

End of year

Full year

Yen

Yen

50.00

50.00

60.00

60.00

–

3. Consolidated financial forecasts for the fiscal year ending April 30, 2013 (May 1, 2012 to April 30, 2013)(Percentage figures show year-on-year changes.)

Million yen%

Million yen%

Million yen%

Million yen%

Net income
per shareYen

157,500

10.3

11,51012.3

11,630

10.3

6,010

22.7

376.94

Net sales

Full year

Operating income

Ordinary income

Net income(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): Yes
Newly consolidated: –Excluded: One company (AIN MEDICAL SYSTEMS INC.)(Note) For detail, please refer to “2. Matters concerning summary information (notes) (1) Major changes insubsidiaries during the period” on page 3 of the Attachment.
(2) Application of specified accounting methods for the preparation of quarterly consolidated financial statements: Yes(Note) For detail, please refer to “2. Matters concerning summary information (notes) (2) Application of specified
accounting methods for the preparation of quarterly consolidated financial statements” on page 3 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:
Yes
4) Restatement of revisions:No(4) Number of outstanding shares (common stock)1) Number of outstanding
As of January 31,
shares (including treasury
2013
stock):
2) Number of shares held in
As of January 31,
treasury:
20133) Average number ofNine months ended
shares outstanding:January 31, 201315,944,106 shares As of April 30, 2012

15,944,106 shares

3,366 shares As of April 30, 2012

3,316 shares

Nine months ended
January 31, 2012

15,940,912 shares

15,940,743 shares*Status of execution of the quarterly review of financial statements
This quarterly financial summary is not subject to the quarterly review procedure based on the Financial Instruments andExchange Act. As of the time of disclosure, this review procedure for quarterly financial statements had not been
completed.
*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 PHARMACIEZ INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2013

Contents
1. Qualitative information on consolidated results for the period under review............................................................................ 2(1) Qualitative information on the consolidated operating results ............................................................................................ 2(2) Qualitative information on the consolidated financial position ............................................................................................ 3(3) Qualitative information on the consolidated financial forecasts .......................................................................................... 3
2. Matters concerning summary information (notes) ................................................................................................................... 3(1) Major changes in subsidiaries during the period ................................................................................................................ 3(2) Application of specified accounting methods for the preparation of quarterly consolidated financial statements ............... 3(3) Changes in accounting principles, changes in accounting estimates, and restatement of revisions .................................. 3
3. Quarterly consolidated financial statements ............................................................................................................................ 4(1) Quarterly consolidated balance sheets............................................................................................................................... 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 the premise of a going concern ........................................................................................................................... 8(4) Notes on significant changes in the amount of shareholders’ equity .................................................................................. 8(5) Segment Information, etc. ................................................................................................................................................. 8

1

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2013

1. Qualitative information on consolidated results for the period under review(1) Qualitative information on the consolidated operating results
During the first nine months of the current fiscal year (May 1, 2012 to January 31, 2013), there were growing
expectations of an upturn in the Japanese economy due to a correction in the excessively strong yen and a recovery inshare prices, together with an improvement in the export environment and the impact of economic stimulus measures.
In this economic environment, the AIN PHARMACIEZ Group (the Group) worked to expand its business and increase
earnings. Specifically, the Group opened new dispensing pharmacies and pushed ahead with M&A and the developmentof medical malls. It also opened urban drug and cosmetic stores and continued to make improvements to themerchandise lineup at existing stores.
In the first nine months of the fiscal year, net sales increased 8.8% year on year to ¥114,671 million, operating income
declined 7.3% to ¥6,830 million, ordinary income fell 4.3% to ¥7,262 million, and net income increased 0.4% to ¥3,689
million.
Financial results by business segment are as follows.
(Dispensing pharmacy business)
At existing dispensing pharmacies, the average prescription price and the share of sales derived from technical fees were
essentially level year on year, as the negative impact of drug price revisions in April 2012 was offset by an increase inlong-term prescriptions.
The Group is responding to changes in the business environment by increasing sales, opening larger stores and raising
the operating efficiency of dispensing pharmacies. Specifically, it is expanding the store network by continuing to open
specialist dispensing pharmacies near hospitals and through M&A deals. From the current fiscal year, it also began the
full-scale development of medical malls.
Medical mall development involves comprehensive support from across the Group, such as facility development,
marketing to attract clinics to the malls, and the involvement of dispensing pharmacy business. These medical malls
contribute to local healthcare services. During the first nine months of the current fiscal year, the business opened a total of
13 new medical malls and made preparations to steadily open more facilities.
As a result, for the first nine months of the fiscal year, the dispensing pharmacy business reported sales growth of 8.4%
year on year to ¥101,729 million, while segment income increased 1.7% to ¥8,950 million.
During the period under review, the Group opened 56 new dispensing pharmacies, including those acquired throughM&A deals, and closed five dispensing pharmacies, resulting in a total of 545.
(Drug and cosmetic store business)
Amid weak sales across the retail sector as a whole, the drugstore sector continued to face a challenging market
environment due to competition related to store openings and prices within the sector. This was compounded by a decline
in demand compared with the same period two years ago, when demand spiked after the Great East Japan Earthquake.
Against this backdrop, the business is working to secure profits by continuing to open urban drug and cosmetic stores
under the ainz & tulpe brand and by enhancing the appeal of existing stores.
With ainz & tulpe, the business is aiming to boost sales capabilities and increase the gross margin by clearlycommunicating to consumers the brand’s concept as a drug and cosmetics retailer, and by continually strengthening
merchandise lineups, particularly for drug and cosmetic products.
In sales promotion, the business is targeting repeat customers and improvements in cost efficiency through initiatives
such as a shifting to a mobile-based reward system and by linking marketing with smartphone applications.
As a result, for the first nine months of the fiscal year, the drug and cosmetic store business reported an increase insales of 10.4% year on year to ¥12,567 million. However, segment income declined 58.0% to ¥64 million due to theimpact of a decline in the average amount spent per customer and other factors.
During the period under review, the business opened five new stores; the ainz & tulpe Nakano Central Park East Store(Nakano-ku, Tokyo), the Yokohama Porta Store (Nishi-ku, Yokohama), the KYOTO AVANTI Store (Minami-ku, Kyoto), theMarui Kinshicho Store (Sumida-ku, Tokyo) and the Tokorozawa Station Store (Tokorozawa City, Saitama Prefecture). It
also closed one suburban drugstore, resulting in a Group total of 60 stores.
(Other businesses)
This segment mainly comprises results from leasing operations. Earnings from leasing operations in the medical mallbusiness are included in this business segment.
During the first nine months of the fiscal year, net sales in other businesses rose 99.9% year on year to ¥374 million asa result of the full-scale start of the medical mall business. However, the segment loss widened to ¥324 million (from ¥80
2

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2013

million in the same period of the previous fiscal year) due to factors such as medical mall startup costs.
(2) Qualitative information on the consolidated financial position
The balance of total assets at the end of the third quarter increased by ¥10,502 million from the end of the previous
fiscal year to ¥96,410 million.
This mainly reflected an increase in inventories, other accounts receivable, property, plant and equipment such asbuildings, goodwill, and lease and guarantee deposits, due to the Group’s business expansion through new store
openings and M&A deals.
The balance of liabilities rose ¥7,424 million to ¥59,586 million, mainly reflecting an increase in accounts payable.
The balance of interest-bearing debt increased by ¥2,987 million to ¥15,703 million.
Total net assets increased by ¥3,078 million to ¥36,824 million and the shareholders’ equity ratio declined 1.0
percentage points to 38.2%.
(3) Qualitative information on the consolidated financial forecasts
The Group has made no change to its earnings forecasts for the full fiscal year, announced May 30, 2012, in light ofearnings trends at new stores and existing stores in the first nine months of the fiscal year and future store opening plans.

2. Matters concerning summary information (notes)(1) Major changes in subsidiaries during the period
In the first nine months of the fiscal year, AIN MEDICAL SYSTEMS INC., a consolidated and specified subsidiary, wasabsorbed by the Group through a merger, effective on August 1, 2012. As a result, this company was removed from thescope of consolidation.
(2) Application of specified accounting methods for the preparation of quarterly consolidated financial statements
Tax expenses were calculated by reasonably estimating the effective tax rate after the application of tax effectaccounting to net income before taxes for the consolidated fiscal year including the third quarter, and multiplying theestimated effective tax rate by income before income taxes for the quarter. In addition, deferred income taxes are included
in income taxes.
(3) Changes in accounting principles, changes in accounting estimates, and restatement of revisions(Change in accounting policies that may be difficult to distinguish from changes in accounting estimates)
Effective from the first quarter of the fiscal year ending April 30, 2013, the Company has changed its depreciation
method for property, plant and equipment in accordance with revisions to the Corporation Tax Law. The new method isapplied to property, plant and equipment acquired by the Company on or after May 1, 2012, and to property, plant andequipment acquired by consolidated subsidiaries on or after April 1, 2012.
This change had a minimal impact on operating income, ordinary income and net income for the first nine months of the
fiscal year under review.

3

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2013

3. Quarterly consolidated financial statements(1) Quarterly consolidated balance sheets(Thousand yen)

Fiscal year endedApril 30, 2012
(As of April 30, 2012)
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, net
Land
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
Deferred tax assets
Lease and guarantee deposits
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Deferred assets
Stock issuance cost
Total deferred assets
Total assets

4

Nine months ended
January 31, 2013
(As of January 31,
2013)

15,935,326
10,985,402
8,138,749
114,663891,515
606,000
2,757,752
917,774(26,875)
40,320,310

14,724,169
11,474,980
10,694,492
110,117908,119
166,000
6,487,944
957,037(22,197)
45,500,662

7,048,953
5,621,786
2,586,164
15,256,904

8,063,087
5,972,273
3,122,845
17,158,207

17,664,823
990,546
18,655,369

19,270,562
1,056,697
20,327,259

2,825,629
1,122,782
5,758,338
2,208,196(256,986)
11,657,961
45,570,235

3,220,938
1,022,789
6,922,038
2,505,146(250,386)
13,420,527
50,905,994

17,74817,74885,908,294

4,247
4,247
96,410,904

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2013

(Thousand yen)

Fiscal year endedApril 30, 2012
(As of April 30, 2012)
Liabilities
Current liabilities
Accounts payable
Short-term debt
Accrued income taxes
Deposits received
Allowance for bonuses to employees
Allowance for bonuses to directors
Reserve for reward obligations
Other current liabilities
Total current liabilities
Long-term liabilities
Long-term debt
Allowance for retirement benefits
Other long-term liabilities
Total long-term liabilities
Total liabilities
Net assets
Shareholders’ equity
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized holding losses on securities
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

5

Nine months ended
January 31, 2013
(As of January 31,
2013)

22,524,795
6,397,458
2,739,772
7,714,207
965,445
12,846
302,0112,288,815
42,945,352

28,379,227
8,063,824
636,797
8,457,073
411,610
5,174
311,0392,304,535
48,569,281

6,318,430
1,448,905
1,449,631
9,216,967
52,162,319

7,639,885
1,634,961
1,742,634
11,017,480
59,586,762

8,682,976
7,872,970
17,426,435(5,627)33,976,755

8,682,976
7,872,970
20,319,270(5,837)36,869,380(281,315)(281,315)
50,53533,745,975
85,908,294(73,574)(73,574)
28,33636,824,142
96,410,904

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2013

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statements of income
Nine months ended
January 31, 2012
(May 1, 2011 toJanuary 31, 2012)

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
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expenses
Loss 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
Extraordinary income
Gain on sales of investments in securities
Gain on sales of fixed assets
Gain on sales of subsidiaries’ shares
Insurance income
Insurance premiums refunded cancellation
Other extraordinary income
Total extraordinary income
Extraordinary losses
Loss on disposal and sales of fixed assets
Loss on sales of investments in securities
Impairment losses on investments in securities
Impairment losses on fixed assets
Directors’ retirement benefits
Other extraordinary losses
Total extraordinary losses
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests
Net income

6(Thousand yen)
Nine months ended
January 31, 2013
(May 1, 2012 toJanuary 31, 2013)

105,389,479
88,653,800
16,735,678
9,365,321
7,370,357

114,671,448
96,918,844
17,752,603
10,921,638
6,830,964

44,98930,84439,453
83,68073,989273,124
546,083

55,76029,10048,39071,486
106,652
364,069
675,459

136,728
52,747
26,94730,00085,026331,450
7,584,990

108,890
56,887
25,118－53,025
243,921
7,262,502

13,002
2,236
22,795－18,302
2,195
58,532

191
10,902－50,000－2,772
63,86664,64011,77391,646113,323
11,016
144,562
436,963
7,206,559
3,542,293
3,664,265(9,784)
3,674,049

88,901
109,796
1,750－
320,000
69,636590,085
6,736,284
3,068,608
3,667,675(22,198)
3,689,874

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2013

Quarterly consolidated statements of comprehensive income
Nine months ended
January 31, 2012
(May 1, 2011 toJanuary 31, 2012)

Income before minority interests
Other comprehensive income
Unrealized holding gains (losses) on securities
Total other comprehensive income (loss)
Comprehensive income
Comprehensive income attributable to shareholders of
the parent
Comprehensive income attributable to minority
interests

7(Thousand yen)
Nine months ended
January 31, 2013
(May 1, 2012 toJanuary 31, 2013)

3,664,265

3,667,675(63,791)(63,791)
3,600,473

207,740
207,740
3,875,416

3,610,257

3,897,615(9,784)(22,198)

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2013

(3) Notes on the premise of a going concern
There are no applicable matters to be reported.
(4) Notes on significant changes in the amount of shareholders’ equity
There are no applicable matters to be reported.
(5) Segment Information, etc.
I Nine months ended January 31, 2012 (May 1, 2011 to January 31, 2012)
1. Net sales and income (loss) by reportable segment
Reportable segments
Adjustment(Note) 1(Thousand yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Dispensing
pharmacybusiness

Drug andcosmetic store
business

Otherbusinesses

93,823,256

11,378,893

187,329

105,389,479－

105,389,479

－

－

9,920

9,920

(9,920)－Total

93,823,256

11,378,893

197,249

105,399,400(9,920)105,389,479

Segment income (loss)

8,801,649

153,563(80,850)

8,874,362(1,289,372)

7,584,990

Total

Net sales(1) Sales to externalcustomers(2) Intersegment sales
and transfers

Notes:

1. The adjustment of ¥(1,289,372) thousand to segment income (loss) includes ¥1,149,933 thousand in corporate
expenses, ¥90,680 thousand in losses that are not allocated to reportable segments, and ¥48,758 thousand ineliminations due to intersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions of the parent
company, such as general affairs and accounting divisions.
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]:
The dispensing pharmacy segment includes six dispensing pharmacy companies that have been acquired by theGroup. During the first nine months of the fiscal year, the increase in goodwill related to these companies was¥1,829,352 thousand.

II Nine months ended January 31, 2013 (May 1, 2012 to January 31, 2013)
1. Net sales and income (loss) by reportable segment
Reportable segments
Adjustment(Note) 1(Thousand yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Dispensing
pharmacybusiness

Drug andcosmetic store
business

Otherbusinesses

101,729,833

12,567,131

374,483

114,671,448－

114,671,448－－

66,36866,368(66,368)－

Total

101,729,833

12,567,131

440,851

114,737,816(66,368)

114,671,448

Segment income (loss)

8,950,081

64,433(324,374)

8,690,141(1,427,638)

7,262,502

Total

Net sales(1) Sales to externalcustomers(2) Intersegment sales
and transfers

Notes:

1. The adjustment of ¥1,427,638 thousand to segment income (loss) includes ¥1,385,034 thousand in corporate
expenses, ¥89,509 thousand in losses that are not allocated to reportable segments, and ¥(46,906) thousand ineliminations due to intersegment transactions.
8

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2013

Corporate expenses consist mainly of expenses associated with the administrative divisions of the parent
company, such as general affairs and accounting divisions.
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]:
The dispensing pharmacy segment includes seven dispensing pharmacy companies that have been acquired by theGroup. During the first nine months of the fiscal year, the increase in goodwill related to these companies was¥2,349,689 thousand.

9