Summary of Financial Statements for the Second Quarter of Fiscal Year Ending April 2013
[Japan GAAP] (Consolidated)
November 28, 2012
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:
December 14, 2012
Start of dividend payment:–

Supplementary documents for quarterly results:

Yes

Quarterly results briefing:

Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen.)
1. Consolidated results for the second quarter of fiscal year ending April 30, 2013 (May 1, 2012 to October 31, 2012)(1) Consolidated operating results(Percentage figures show year-on-year changes.)
Net sales
Operating income
Ordinary income
Net income
Six months ended October 31, 2012
Six months ended October 31, 2011
(Note) Comprehensive income:Million yen%

Million yen%

Million yen%

Million yen%

75,0909.1

4,209(12.0)

4,454

(8.6)

2,137

(9.6)

68,833
11.3
4,781
39.9
4,871
40.4
Six months ended October 31, 2012: ¥2,148 million(-5.9%)
Six months ended October 31, 2011: ¥2,282 million (+46.9%)

2,364

39.3

Net income
per share

Diluted net income
per share
Yen

Yen

Six months ended October 31, 2012

134.10–Six months ended October 31, 2011148.34–(2) Consolidated financial position
Shareholders’equity ratio

Net assets

Total assets

Net assets per
share

Million yen

Million yen%

Yen

As of October 31, 2012

92,51135,09737.9

2,199.73

As of April 30, 2012

85,90833,74539.2

2,113.79(Reference) Shareholders’ equity:

As of October 31, 2012: ¥35,065 million

As of April 30, 2012: ¥33,695 million

2. Dividends
Record date

End of firstquarterYen–

End of second
quarter
Yen
0.00

Dividend per share
End of third
quarter
Yen–

Year ended April 30, 2012–
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(Note) For detail, please refer to “2. Matters concerning summary information (notes) (3) Changes in accounting
principles, changes in accounting estimates, and restatement of revisions” on page 3 of the Attachment.
(4) Number of outstanding shares (common stock):1) Number of outstanding
As of October 31,
shares (including treasury
2012
stock):
2) Number of shares held in
As of October 31,
treasury:
20123) Average number ofSix months ended
shares outstanding:
October 31, 2012

15,944,106 shares As of April 30, 2012

15,944,106 shares

3,366 shares As of April 30, 2012

3,316 shares

Six months ended
October 31, 201115,940,953 shares

15,940,748 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 Second 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) Consolidated statements of cash flows .............................................................................................................................. 8(4) Notes on the premise of a going concern ......................................................................................................................... 10(5) Notes on significant changes in the amount of shareholders’ equity ................................................................................ 10(6) Segment Information, etc. ............................................................................................................................................... 10

1

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Second 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 six months of the current fiscal year (May 1, 2012 to October 31, 2012), conditions in the Japanese
economy showed signs of a slowdown in areas such as corporate earnings, manufacturing activity and exports, amid
economic uncertainty in Europe, China and elsewhere overseas.
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, made effective use of M&A and developed medicalmalls. It also opened urban drug and cosmetic stores and improved the merchandise lineup at existing stores.
In the first six months of the fiscal year, net sales increased 9.1% year on year to ¥75,090 million, operating income
declined 12.0% to ¥4,209 million, ordinary income fell 8.6% to ¥4,454 million, and net income declined 9.6% to ¥2,137
million.
Financial results by business segment are as follows.
(Dispensing pharmacy business)
Although the drug price was reduced by an average of 6.25% under the drug price revisions in April 2012, the averageprescription price at existing dispensing pharmacies and dispensing pharmacy sales were roughly level with the same
period a year earlier due to an increase in long-term prescriptions.
The dispensing pharmacy business continued to open specialist dispensing pharmacies near hospitals and develop new
facilities, opening a total of 12 new medical malls in the first six months of the fiscal year.
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 the dispensing pharmacy business. These medical malls
contribute to local healthcare services and the Group plans to actively develop them as a growth business going forward.
In addition, the Group completed the absorption of key subsidiary AIN MEDICAL SYSTEMS INC. through a merger
effective on August 1, 2012. AIN MEDICAL SYSTEMS was responsible for operating all the Group’s dispensing pharmacies
in the Tokyo metropolitan area, and its absorption has contributed to steady progress in reinforcing business development
capabilities and rationalizing the operating and management divisions of the dispensing pharmacy business.
As a result, for the first six months of the fiscal year, the dispensing pharmacy business reported sales growth of 8.5%
year on year to ¥66,622 million. However, segment income declined 1.3% to ¥5,682 million due to the impact of startup
costs for medical malls and a lack of regular customers at newly opened dispensing pharmacies.
During the period under review, the Group opened 44 new dispensing pharmacies, including those acquired throughM&A deals, and closed three dispensing pharmacies, resulting in a total of 535 (of the 44 new dispensing pharmacies,
earnings from 13 pharmacies that were acquired from three companies through M&A deals will be included inconsolidated results from the third quarter of the fiscal year due to the timing of the deals).
(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 last year, when demand spiked after the Great East Japan Earthquake.
Against this backdrop, the Group clarified its concept of unique urban drug and cosmetic stores under the ainz & tulpe
brand and continued to open stores in urban areas with high levels of customer traffic.
At existing stores, the business continued to strengthen merchandise lineups, particularly for drug and cosmetic
products, and worked to boost sales capabilities and increase the gross margin. Costs were also reduced by systemizing
store operations, such as introducing an automated product ordering system and promoting greater use of mobile
marketing tools in sales promotion.
As a result, for the first six months of the fiscal year, the drug and cosmetic store business reported an increase in salesof 12.3% year on year to ¥8,208 million. However, segment income declined 49.5% to ¥26 million due to the impact of adecline in the average amount spent per customer and other factors.
During the period under review, the business opened three new stores; the ainz & tulpe Nakano Central Park East
Store (Nakano-ku, Tokyo), the Yokohama Porta Store (Nishi-ku, Yokohama) and the KYOTO AVANTI Store (Minami-ku,
Kyoto). It also closed one suburban drugstore, resulting in a Group total of 58 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 six months of the fiscal year, net sales in other businesses rose 138.9% year on year to ¥258 million as
2

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2013a result of the full-scale start of the medical mall business. However, the segment loss widened to ¥223 million (from ¥36
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 second quarter increased by ¥6,602 million from the end of the previous
fiscal year to ¥92,511 million.
This mainly reflected an increase in inventories, other accounts receivable, property, plant and equipment such asbuildings, 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 ¥5,251 million to ¥57,413 million, mainly reflecting an increase in accounts payable.
The balance of interest-bearing debt increased by ¥1,335 million to ¥14,051 million.
Total net assets increased by ¥1,351 million to ¥35,097 million and the shareholders’ equity ratio declined 1.3
percentage points to 37.9%.
(Cash flows)
In the first six months of the fiscal year, cash and cash equivalents (“cash”) decreased by ¥1,096 million from theprevious fiscal year end to ¥14,838 million.
Cash flows from each activity and their relevant factors are as follows.
During the first six months of the fiscal year, net cash provided by operating activities was ¥2,370 million, comparedwith ¥7,533 million in the same period a year earlier. The main cash inflows were income before income taxes andminority interests of ¥3,969 million, increase in accounts payable of ¥2,117 million, depreciation and amortization of ¥997
million, and amortization of goodwill of ¥822 million. The main cash outflows were increase in other accounts receivable of¥2,365 million, increase in inventories of ¥1,438 million, and income taxes paid of ¥2,879 million.
Net cash used in investing activities amounted to ¥3,508 million, compared with ¥3,910 million used a year earlier. Thiswas mainly due to payments of ¥2,519 million for the acquisition of property, plant and equipment and intangible fixed
assets and ¥416 million for purchases of subsidiaries’ shares resulting in obtaining controls.
Net cash provided by financing activities was ¥41 million, compared with ¥726 million used a year earlier. This was
mainly attributable to a net cash inflow of ¥1,032 million from interest-bearing debt repayment and proceeds, and cash
dividends paid of ¥797 million.
(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 six 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 six 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 second 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 six months of the
fiscal year under review.

3

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Second 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

Six months ended
October 31, 2012
(As of October 31,
2012)

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

14,853,932
10,924,128
9,658,793
109,851874,260
177,669
5,161,121
812,955(24,701)
42,548,011

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

7,971,885
5,947,823
2,613,684
16,533,392

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

19,417,228
1,084,404
20,501,632

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

3,127,924
1,120,202
6,632,245
2,290,525(251,586)
12,919,311
49,954,337

17,74817,74885,908,294

8,748
8,748
92,511,096

AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Second 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

Six months ended
October 31, 2012
(As of October 31,
2012)

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

25,255,546
7,823,121
1,692,872
8,183,046
1,123,366
12,935302,0113,635,944
48,028,844

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

6,227,980
1,572,032
1,584,549
9,384,562
57,413,407

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

8,682,976
7,872,970
18,767,002(5,837)35,317,111(281,315)(281,315)
50,53533,745,975
85,908,294(251,719)(251,719)
32,29635,097,689
92,511,096

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

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statements of income
Six months ended
October 31, 2011
(May 1, 2011 to
October 31, 2011)

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
Insurance income
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)Six months ended
October 31, 2012
(May 1, 2012 to
October 31, 2012)

68,833,121
57,927,728
10,905,392
6,123,432
4,781,960

75,090,551
63,593,065
11,497,485
7,287,507
4,209,97828,91524,35424,94650,972
60,771
134,101
324,062

38,68623,09230,721
51,98674,561
191,377
410,426

92,72434,34018,50430,00058,730234,299
4,871,723

71,18236,82917,503－40,364
165,879
4,454,524

13,002800－
1,500
15,302－
10,88150,000809
61,69043,096
4,474
50,064
113,323
11,016
133,863355,839
4,531,186
2,172,707
2,358,479(6,171)
2,364,651

70,697
107,387
1,463－
320,000
46,919546,467
3,969,747
1,850,379
2,119,367(18,238)
2,137,606

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

Quarterly consolidated statements of comprehensive income
Six months ended
October 31, 2011
(May 1, 2011 to
October 31, 2011)

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)Six months ended
October 31, 2012
(May 1, 2012 to
October 31, 2012)

2,358,479

2,119,367(75,594)(75,594)
2,282,884

29,59529,5952,148,963

2,289,056

2,167,202(6,171)(18,238)

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

(3) Consolidated statements of cash flows
Six months ended
October 31, 2011
(May 1, 2011 to
October 31, 2011)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Impairment losses
Amortization of goodwill
Loss on devaluation of investments in securities
Increase in allowance for retirement benefits
Increase in allowance for bonuses to employees
Increase in allowance for bonuses to directors
Interest and dividend income
Interest expenses
Loss on retirement and sales of fixed assets
Decrease in accounts receivable(Increase) decrease in inventories(Increase) decrease in other accounts receivable
Increase in accounts payable
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Payments for purchases of property, plant andequipment and intangible fixed assets
Proceeds from sales of property, plant and equipment
and intangible fixed assets
Payments for purchase of investments in securities
Proceeds from sales of investments in securities
Purchase of subsidiaries’ shares resulting in obtaining
controls
Payments for loans receivable
Proceeds from collections of loans receivable
Payments for time deposits
Proceeds from withdrawal of time deposits
Other, net
Net cash used in investing activities

8(Thousand yen)Six months ended
October 31, 2012
(May 1, 2012 to
October 31, 2012)

4,531,186
815,915
113,323
563,972
50,064
107,991
96,283
6,270(53,270)
92,72442,296643,615
95,21086,3801,959,456
879,295
10,030,715
54,640(94,025)(2,458,203)
7,533,127

3,969,747
997,084－
822,858
1,463
123,127
142,606
89(61,778)
71,18259,815454,732(1,438,970)(2,365,679)
2,117,445
362,715
5,256,439
67,080(73,195)(2,879,474)
2,370,850(1,766,978)(2,519,146)

36,900240,739(148,500)
35,131(368,760)
77,300(1,033,990)(416,908)(604,000)
116,359(57,000)
38,305(526,631)(3,910,402)(103,000)
537,901－－(956,835)(3,508,711)

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

(Thousand yen)Six months ended
October 31, 2011
(May 1, 2011 to
October 31, 2011)

Cash flows from financing activities
Proceeds from short-term debts
Repayments of short-term debts
Proceeds from long-term debts
Repayments of long-term debts
Payments for redemption of bonds
Repayments of lease obligations
Payments for purchase of treasury stock
Cash dividends paid
Net cash provided by (used in) financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period

2,100,000(2,017,590)
2,700,000(2,638,112)(23,000)(130,464)(378)(717,345)(726,891)
2,895,833
15,397,504
18,293,337

9

Six months ended
October 31, 2012
(May 1, 2012 to
October 31, 2012)

2,380,000(837,772)
2,350,000(2,859,928)－(194,033)(210)(797,039)
41,015(1,096,844)
15,935,326
14,838,482

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

(4) Notes on the premise of a going concern
There are no applicable matters to be reported.
(5) Notes on significant changes in the amount of shareholders’ equity
There are no applicable matters to be reported.
(6) Segment Information, etc.
I Six months ended October 31, 2011 (May 1, 2011 to October 31, 2011)
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

61,411,999

7,312,818

108,303

68,833,121－

68,833,121

－

－

6,613

6,613

(6,613)－

61,411,999
5,754,783

7,312,818
52,072

114,917(36,395)

68,839,735
5,770,460(6,613)(898,737)

68,833,121
4,871,723

Total

Net sales(1) Sales to externalcustomers(2) Intersegment sales
and transfers
Total
Segment income (loss)
Notes:

1. The adjustment of ¥(898,737) thousand to segment income (loss) includes ¥802,726 thousand in corporate
expenses, ¥58,721 thousand in losses that are not allocated to reportable segments, and ¥37,290 thousand ineliminations due to intersegment transactions.
Overall group 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]:
There are no applicable matters to be reported.
II Six months ended October 31, 2012 (May 1, 2012 to October 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

66,622,833

8,208,949

258,769

75,090,551－

75,090,551

－

－

3,306

3,306

(3,306)－

66,622,833
5,682,556

8,208,949
26,290262,076(223,915)

75,093,858
5,484,931(3,306)(1,030,406)

75,090,551
4,454,524

Total

Net sales(1) Sales to externalcustomers(2) Intersegment sales
and transfers
Total
Segment income (loss)
Notes:

1. The adjustment of ¥(1,030,406) thousand to segment income (loss) includes ¥969,892 thousand in corporate
expenses, ¥23,150 thousand in losses that are not allocated to reportable segments, and ¥37,363 thousand ineliminations due to intersegment transactions.
Overall group 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.
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AIN PHARMACIEZ INC. (9627) Summary of Financial Statements for the Second Quarter of the Fiscal Year Ending April 30, 2013

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 five dispensing pharmacy companies that have been acquired by theGroup. During the first six months of the fiscal year, the increase in goodwill related to these companies was¥2,025,848 thousand.

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