Summary of Financial Statements for the First Quarter of Fiscal Year Ending April 2024
[Japan GAAP] (Consolidated)
September 1, 2023
Name of listed company:

AIN HOLDINGS INC.

Exchange listed on:

Prime Market of Tokyo Stock Exchange and Sapporo Securities Exchange

Code number:

9627

URL:

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

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:
September 14, 2023–

Start of dividend payment:
Supplementary documents for quarterly results:

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

Quarterly results briefing:No(Amounts are rounded down to the nearest million yen.)
1. Consolidated results for the first quarter of fiscal year ending April 30, 2024 (May 1, 2023 to July 31, 2023)(1) Consolidated operating results(Percentage figures show year-on-year changes.)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Three months ended July 31, 2023
Three months ended July 31, 2022
(Note) Comprehensive income:Million yen%

Million yen%

Million yen%

Million yen%

94,654
81,470

16.2
8.6

3,610
2,753

31.1
5.5

3,881
3,090

25.6
7.9

2,140
1,704

25.5
30.2

Three months ended July 31, 2023: ¥2,179 million (+28.5%)
Three months ended July 31, 2022: ¥1,695 million (+33.0%)
Earnings
per share

Three months ended July 31, 2023

Diluted earnings
per share
Yen

Yen

60.93

–

Three months ended July 31, 2022
48.54–
(Note) In the third quarter of the fiscal year ended April 30, 2023, the Company finalized provisional accounting treatment related
to a business combination. Results for the first quarter of the fiscal year ending April 30, 2023 reflect the finalized figures.
(2) Consolidated financial position
Total assets

Net assets

Shareholders’equity ratio

Million yen

Million yen%

As of July 31, 2023

235,647

126,617

53.7

As of April 30, 2023

231,750

126,546

54.6(Reference) Shareholders’ equity:

As of July 31, 2023: ¥126,524 million

As of April 30, 2023: ¥126,449 million

2. Dividends

Year ended April 30, 2023

End of firstquarter
Yen–

Dividend per share
End of third
quarterYen–
0.00

End of second
quarter
Yen–
Year ending April 30, 2024
Year ending April 30, 2024
0.00
(forecast)(Note) Revision to the most recently announced dividend forecasts: No–

End of year

Full year

Yen

Yen

60.00

60.00

60.00

60.00

3. Consolidated financial forecasts for the fiscal year ending April 30, 2024 (May 1, 2023 to April 30, 2024)(Percentage figures show year-on-year changes.)
Profit attributable toEarnings
Net sales
Operating profit
Ordinary profit
owners of parent
per share
Million yen%
Million yen%
Million yen%
Million yen%
Yen
First six
183,459
7.2
6,087 (10.3)
6,421 (11.8)
3,185 (16.3)
90.66
monthsFull year
375,000
4.5
15,663(2.1)
16,302(4.5)
8,250 (10.7)
234.84(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.:
No2) 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 July 31, 2023
stock):
2) Number of shares held in
As of July 31, 2023
treasury:
3) Average number ofThree months ended
shares outstanding:July 31, 2023

35,428,212 shares As of April 30, 2023

35,428,212 shares

298,188 shares As of April 30, 2023

298,188 shares

Three months ended
July 31, 2022

35,127,301 shares

35,130,024 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 First Quarter of the Fiscal Year Ending April 30, 2024

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 statement of income ...................................................................................................................... 6
Quarterly consolidated statement 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(Business combinations, etc.)............................................................................................................................................. 8(Segment information, etc.) ................................................................................................................................................ 9

1

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2024

1. Qualitative information on consolidated results for the period under review
In the third quarter of the fiscal year ended April 30, 2023, the Company finalized provisional accounting treatment related
to a business combination. To facilitate comparison and analysis of the same quarter of the previous fiscal year, amounts inthese quarterly financial statements reflect significant revisions to the initial allocation of acquisition costs as a result of the
finalization of the provisional accounting treatment.
(1) Consolidated operating results
During the first three months of the current fiscal year (May 1, 2023 to July 31, 2023), the Japanese economy showedsigns of a moderate pickup, supported by a recovery in mobility following the downgrade of COVID-19 to a category-5
infectious disease and the easing of mobility restrictions. However, the outlook remains uncertain due to rising prices andfluctuations in financial and capital markets.
In this economic environment, the AIN HOLDINGS Group (the Group) worked to provide healthcare and retail services, inline with its mission to “contribute to local healthcare” and “provide beauty and happiness” – two of the Group’s materiality
issues. AIN HOLDINGS continues to aim to be a company that “people welcome to their communities” and contributes tosolving various social issues through its business activities.
In addition, the Company has positioned diversity & inclusion as one of its materiality themes for sustainability
management. As part of active efforts to promote diversity, such as creating working environments that are welcoming andmotivating, the Group is encouraging male employees to take childcare leave and all employees to use annual paid leave.
The Group is also implementing training and other programs to help female employees develop long-term careers and moveinto management roles. These efforts have been recognized by the government, with core operating company AIN
PHARMACIEZ INC. awarded Platinum Kurumin certification by the Minister of Health, Labour and Welfare in July 2023.
Results for three months ended July 31, 2023 (May 1, 2023 to July 31, 2023) are as follows.
(Million yen)
ChangeThree months
Three months

ended
July 31, 2022

ended
July 31, 2023

81,470
2,753
3,090
1,704

94,654
3,610
3,881
2,140

Three months
ended
July 31, 2022

Three months
ended
July 31, 2023

Sales
72,482
Segment profit
4,732
Sales
6,086
Segment profit
164
Sales
2,920
Other businesses
Segment profit
4(loss)(Note) Segment sales include intersegment transactions.

84,405
5,429
7,412
710
2,848
(5)

Net sales
Operating profit
Ordinary profit
Profit attributable to owners of parent
Results by segment are as follows.
(Million yen)

Dispensing
pharmacy business
Cosmetic and drug
store business

13,183856
790
435

Change11,923
696
1,326
545
(72)
(10)

Change (%)

16.2
31.1
25.6
25.5

Change (%)

16.5
14.7
21.8
332.2
(2.5)
－

(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 cooperating withmedical institutions, using patient medication notebooks to ensure integrated and continuous monitoring of patient
medication, and providing services for home-based healthcare.
The average prescription price rose due to an increase in high-cost prescriptions, including COVID-19 treatments, and thenumber of prescriptions also increased due to the easing of restrictions on outpatient visits after COVID-19 was downgradedto a category-5 infectious disease.
During the period under review, the Group opened 10 new dispensing pharmacies, including those acquired through M&A
deals, closed three, and sold one, resulting in a total of 1,215.

2

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2024

(Cosmetic and drug store business)
In the cosmetic and drug store business, customer numbers were firm amid a recovery in mobility for both domestic
shoppers and overseas visitors. There was also a change in customer buying habit from infection control products tocosmetics, one of the Company's strengths. The Group will continue to closely monitor buying trends, reinforce themerchandise lineup and create attractive retail displays.
During the period under review, the Group opened one store and closed one, resulting in a total of 78 cosmetic and drug
stores.
(2) Consolidated financial position
The balance of total assets at the end of the first quarter increased by ¥3,897 million from the end of the previous fiscal
year to ¥235,647 million. This mainly reflected an increase in merchandise due to a rise in inventories of COVID-19
treatments, and an increase in buildings and structures due to the opening of stores.
The balance of liabilities increased by ¥3,825 million to ¥109,029 million.
The balance of short-term and long-term debt decreased by ¥1,195 million to ¥7,496 million, primarily reflecting therepayment of loans payable.
Total net assets increased by ¥71 million to ¥126,617 million and the shareholders’ equity ratio declined 0.9 percentage
points to 53.7%.
(3) Forecast of consolidated financial results and other forward-looking information
There are no changes to the Group’s consolidated financial forecasts for the first six months or the fiscal year ending April
30, 2024, which were released on June 2, 2023.

3

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2024

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

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise
Supplies
Short-term loans receivable
Accounts receivable - other
Other
Allowance for doubtful accounts
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

Fiscal year endedApril 30, 2023
(As of April 30, 2023)

Three months ended
July 31, 2023
(As of July 31, 2023)

46,796
13,24921,299286
355
11,9694,348–
98,30547,373
12,71924,048291
233
11,6935,042(1)101,400

21,407
10,602
7,449
39,45923,336
10,481
6,294
40,11346,4435,900
52,34345,611
6,001
51,613

2,720
5,990
24,5078,735(312)
41,641
133,444
231,750

2,791
5,974
24,9509,085(281)
42,520134,246
235,647

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2024

(Million yen)

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

5

Fiscal year endedApril 30, 2023
(As of April 30, 2023)

Three months ended
July 31, 2023
(As of July 31, 2023)

58,698
3,670
3,328
18,232
3,215
22
532
5,284
92,98664,8593,648
1,824
19,286
2,372
10
467
5,370
97,840

5,021
4,498
2,697
12,218105,204

3,848
4,614
2,726
11,189109,029

21,89420,50485,963(2,000)126,362

21,89420,50485,996(2,000)126,394

(7)
95
87
96
126,546
231,750

42
87
129
92
126,617
235,647

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2024

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statement of income(Million yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Commission income
Rental income from real estate
Outsourcing service income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sale of receivables
Rental expenses on real estate
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of businesses
Other
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

6

Three months ended
July 31, 2022
(May 1, 2022 toJuly 31, 2022)
81,47069,826
11,6438,889
2,753

Three months ended
July 31, 2023
(May 1, 2023 toJuly 31, 2023)
94,65481,455
13,199
9,588
3,610

12
31
5
49
50
73
171
394

11
18
2
79
56
42
138
350

14
23
4
16
58
3,090

8
26
38
5
79
3,881

1
4
–
5

274
–
3
277

65
20
11
98
2,997
1,293
1,704
(0)
1,704

71
139
6
216
3,942
1,805
2,136
(3)
2,140

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2024

Quarterly consolidated statement of comprehensive income(Million yen)

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

7

Three months ended
July 31, 2022
(May 1, 2022 toJuly 31, 2022)
1,704

Three months ended
July 31, 2023
(May 1, 2023 toJuly 31, 2023)
2,136

(14)
6
(8)
1,695
1,696

50
(7)
42
2,179
2,183

(0)

(3)

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2024

(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)
There are no applicable matters to be reported.
(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.
(Business combinations, etc.)(Significant revision of initial allocation of acquisition costs in comparative information)
In the first quarter of the previous fiscal year, provisional accounting treatment was applied for the Company’s businesscombination with Pharmacy Holdings Co. Ltd. on May 23, 2022, and the provisional accounting treatment was finalized in
the third quarter.
Comparative information in the quarterly consolidated financial statements for the first quarter of the current fiscal year
reflects significant revisions to the initial allocation of acquisition costs due to the finalization of the provisional accounting
treatment. As a result, goodwill of ¥12,921 million under the provisional accounting treatment increased by ¥104 million to¥13,026 million under the finalized accounting treatment. The rise in goodwill reflects an increase of ¥54 million in deferred
tax assets under investments and other assets and an increase of ¥159 million in retirement benefit liability under noncurrent liabilities.
The impact of this change on the consolidated financial statements for the first quarter of the previous fiscal year isimmaterial.
Pharmacy Holdings Co. Ltd. was dissolved on December 1, 2022 after it was merged into its wholly owned subsidiary
PHARMACY Co. Ltd. (Fukuyama City, Hiroshima Prefecture), the surviving company.

8

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2024

(Segment information, etc.)
I Three months ended July 31, 2022 (May 1, 2022 to July 31, 2022)
1. Net sales and income (loss) by reportable segment
Reportable segments
Adjustments(Note) 1(Million yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses(1) Sales to third parties

72,482

6,086

2,901

81,470－81,470(2) Intersegment sales

－

－

18

18

(18)

－

72,482

6,086

2,920

81,489(18)

81,470

4,732

164

4

4,901

(1,811)

3,090

Total

Sales

Total sales
Segment profit (loss)
Notes:

1. The adjustment of ¥(1,811) million to segment profit (loss) includes ¥2,159 million in corporate expenses, ¥(341)
million in (income) loss that is not allocated to reportable segments, and ¥(7) 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 profit (loss) is adjusted with the ordinary profit of quarterly consolidated statements of income.
3. In the third quarter of the previous fiscal year, the Company finalized provisional accounting treatment related to abusiness combination. Results for the first quarter of the previous fiscal year reflect the finalized figures.

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]:
In the dispensing pharmacy business segment, Pharmacy Holdings Co. Ltd. and its subsidiaries were included in thescope of consolidation from the first quarter of the previous fiscal year following the acquisition of all shares in Pharmacy
Holdings Co. Ltd. As a result, goodwill increased by ¥13,026 million.
Effective December 1, 2022, the company was dissolved following a merger with its wholly owned subsidiary
PHARMACY Co. Ltd. (Fukuyama City, Hiroshima Prefecture), the surviving company. The increase in goodwill is the amountreflected after the finalization of provisional accounting treatment, as described in "Notes on quarterly consolidated financial
statements, (Business combinations, etc)," "Significant revision of initial allocation of acquisition costs in comparative
information."

9

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2024

Ⅱ Three months ended July 31, 2023 (May 1, 2023 to July 31, 2023)
1. Net sales and income (loss) by reportable segment
Reportable segments
Adjustments(Note) 1(Million yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses(1) Sales to third parties

84,405

7,412

2,835

94,654－

94,654(2) Intersegment sales

－

－

12

12

(12)

－

84,405

7,412

2,848

94,666(12)

94,654

5,429

710

(5)

6,134

(2,252)

3,881

Total

Sales

Total sales
Segment profit (loss)
Notes:

1. The adjustment of ¥(2,252) million to segment profit (loss) includes ¥2,587 million in corporate expenses, ¥(323)
million in (income) loss that is not allocated to reportable segments, and ¥(11) 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 profit (loss) is adjusted with the ordinary profit 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.

10