Summary of Financial Statements for Fiscal Year Ended April 2023
【Japan GAAP】(Consolidated)
June 2, 2023
AIN HOLDINGS INC.
Prime Market of Tokyo Stock Exchange and Sapporo Securities Exchange
9627
URL: https://www.ainj.co.jp/
Kiichi Otani, President and Representative Director
Toshihide Mizushima, Representative Senior Managing Director
TEL: +81-11-814-1000
Date of the ordinary general meeting of shareholders:
July 28, 2023
Date of scheduled payment of dividends:
July 31, 2023
Date of filing securities report:
July 31, 2023
Supplementary documents for this summary of financial statements: Yes (Supplementary materials are disclosed on theName of listed company:
Exchange listed on:
Code number:
Representative:
Inquiries:

Company’s website appropriately as the financial
statements.)

Explanation meeting for financial results:

Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen.)

1. Consolidated results for the fiscal year ended April 2023 (from May 1, 2022 to April 30, 2023)(Percentage figures show year-on-year changes.)(1) Consolidated operating results
Net salesYear ended April 30, 2023
Year ended April 30, 2022

Operating profit

Profit attributable toowners of parent

Ordinary profit

Million yen%

Million yen%

Million yen%

Million yen%

358,742
316,247

13.4
6.4

16,004
15,1395.7
38.5

17,064
16,041

6.4
26.8

9,234
7,092

30.2
5.9

(Note) Comprehensive income:Year ended April 30, 2023: ¥9,446 million (+32.5%)
Year ended April 30, 2022: ¥7,126 million (+5.1%)
Earnings per
Diluted earnings
Ordinary profit to
Return on equity
share
per share
total assets
Yen

Yen

%

262.87201.47

–
–

7.5
6.0

Operating profit
to net sales

%

%

7.7
Year ended April 30, 2022
7.7
(Reference) Share of profit of entities accounted for using equity method: Year ended April 30, 2023: ¥– million
Year ended April 30, 2023

4.5
4.8

Year ended April 30, 2022: ¥2 million(2) Consolidated financial position
Total assets
As of April 30, 2023
As of April 30, 2022

Shareholders’ equity
ratio

Net assets

Net assets per share

Million yen

Million yen%

Yen

231,750
212,461

126,546
119,01054.6
56.0

3,599.47
3,385.51(Reference) Equity capital: As of April 30, 2023: ¥126,449 million

As of April 30, 2022: ¥118,923 million(3) Consolidated cash flows
Cash flows fromoperating activities
Year ended April 30, 2023
Year ended April 30, 2022

Cash flows frominvesting activities

Cash and cash
equivalents
at end of year

Cash flows fromfinancing activities

Million yen

Million yen

Million yen

Million yen

20,267
26,156(22,292)(13,943)(11,237)(7,753)

46,21759,4702. Dividends
Dividends per share

Total
dividends

Dividends
payout ratio

Dividends on
net assets

1Q-end2Q-end3Q-endYear-end

Annual

Yen

Yen

Yen

Yen

Yen

(annual)Million yen(consolidated)%(consolidated)%Year ended April 30, 2023

–
–

0.00
0.00

–
–

55.00
60.00

55.00
60.00

1,932
2,107

27.3
22.8

1.7
1.7

Year ending April 30, 2024
(forecast)

–

0.00

–

60.00

60.00

Year ended April 30, 2022

25.5

3. Consolidated financial forecast for the fiscal year ending April 30, 2024 (from May 1, 2023 to April 30, 2024)
Net salesFirst half
Full year(Percentage figures show year-on-year changes.)
Profit attributable toEarnings
Ordinary profit
owners of parent
per share
Million yen%
Million yen%
Yen

Operating profit

Million yen%

Million yen%

183,459
375,000

7.2
4.5

6,087
15,663(10.3)(2.1)

6,421
16,302(11.8)
(4.5)

3,185
8,250

(16.3)(10.7)

90.66
234.84* Notes(1) Major changes in subsidiaries during the fiscal year (changes in specified subsidiaries resulting in change inscope of consolidation): No
Newly consolidated: –Excluded: –(2) Changes in accounting principles, changes in accounting estimates, and restatement of revisions
1) Changes in accounting principles as a result of revisions to accounting standards, etc.: Yes
2) Changes in accounting principles other than 1):
No3) Changes in accounting estimates:
No4) Restatement of revisions:No(3) Number of outstanding shares (common stock):1) Number of outstanding
shares (including treasury As of April 30, 2023
stock):
2) Number of shares held in
As of April 30, 2023
treasury:
3) Average number of
Fiscal year endedApril 30, 2023
shares outstanding:

35,428,212 shares As of April 30, 2022

35,428,212 shares

298,188 shares As of April 30, 2022

300,911 sharesFiscal year ended

35,129,116 shares April 30, 2022

35,202,302 shares*This Summary of Financial Statements is outside the scope of audit 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 Fiscal Year Ended April 30, 2023
Contents of Attachment
1. Operating Results and Other ................................................................................................................................................. 2(1) Overview of operating results for the fiscal year under review ......................................................................................... 2(2) Overview of financial position for the fiscal year under review ......................................................................................... 3(3) Overview of cash flows for the fiscal year under review................................................................................................... 3(4) Future outlook .................................................................................................................................................................. 5
2. Basic Stance on Selection of Accounting Standards ............................................................................................................. 5
3. Consolidated Financial Statements and Major Notes ............................................................................................................ 6(1) Consolidated balance sheet ............................................................................................................................................. 6(2) Consolidated statement of income and comprehensive income ...................................................................................... 8
Consolidated statement of income ................................................................................................................................... 8
Consolidated statement of comprehensive income........................................................................................................ 10(3) Consolidated statement of changes in net assets ........................................................................................................... 11(4) Consolidated statement of cash flows............................................................................................................................ 13(5) Notes to consolidated financial statements .................................................................................................................... 15(Notes on the premise of a going concern) ........................................................................................................................ 15(Changes in accounting policies) ....................................................................................................................................... 15(Changes in presentation of financial statements) ............................................................................................................. 15(Segment information, etc.) ................................................................................................................................................ 16(Per-share information) ...................................................................................................................................................... 20(Material subsequent events) ............................................................................................................................................. 20-1-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023

1. Operating Results and Other(1) Overview of operating results for the fiscal year under review
During the fiscal year under review (May 1, 2022 to April 30, 2023; fiscal 2023), the COVID-19 pandemic
continued to have an impact on the Japanese economy, but there were signs of a moderate pickup due to aneasing in mobility restrictions and other factors. However, the outlook remains uncertain amid rising prices andfluctuations in financial and capital markets.
In this economic environment, the AIN HOLDINGS Group (the Group) rigorously implemented measures toprevent the spread of COVID-19 and worked to provide healthcare and retail services. To help solve various
social issues through its business activities, AIN HOLDINGS aims to be a company that “people welcome totheir communities.”
We have identified six issues material to the AIN Group (materiality): "Contribute to local healthcare," "Provide
beauty and happiness," "Safety, peace of mind and trust," "Protect the environment and reduce environmental
impact," "Ensure sound management base," and "Cooperate with local communities and businesses." We havealso publicly disclosed KPIs and fiscal 2025 targets for initiatives in each area of materiality.
In July 2022, the Group endorsed the final report of the Task Force on Climate-related Financial Disclosure(TCFD)* and adopted four disclosure items from the TCFD recommendations and published them on its website.
In September 2022, as part of efforts to enhance communication with stakeholders, the Group published a new
Integrated Report with information on specific steps it is taking to address materiality, as well as humanresources strategy, DX strategy and other measures to increase value over the medium and long term. In
November 2022, the Group formulated the CSR Procurement Policy and Guidelines in order to realize one of
the Group’s materiality goals: Cooperate with local communities and businesses. The Group also signed theUnited Nations Global Compact and joined the Global Compact Network Japan.
In March 2023, for the second consecutive year, the Group received certification as an Outstanding Healthand Productivity Management Organization for 2023 (large enterprise category) under a program run jointly by
the Ministry of Economy, Trade and Industry (METI) and Nippon Kenko Kaigi that recognizes leading companies
in health and productivity management. In addition, from the standpoint of human capital management, we areworking to improve the health of employees to reduce the staff turnover rate and lift productivity by harnessing
the performance of every employee, as part of our efforts to "Ensure sound management base."
By implementing a range of measures, the Group is working to realize sustainability management in order togenerate sustainable growth and create social, environment and economic value.
TCFD :Task Force on Climate-related Financial Disclosures, established by the Financial Stability Board (FSB) at the request of the G20
finance ministers and central bank governors. The task force published its recommendations in its final report in June 2017.

Results for fiscal 2023 (May 1, 2022 to April 30, 2023) are as follows.
(Million yen)

Fiscal 2022

Fiscal 2023

ChangeChange (%)

Net sales

316,247

358,742

42,494

13.4

Operating profit

15,13916,004864

5.7

Ordinary profit

16,041

17,064

1,022

6.4

Profit attributable to owners of parent

7,092

9,234

2,142

30.2

Results by segment are as follows.
(Million yen)
Dispensing
pharmacy business
Cosmetic and drug
store business
Other businesses

Fiscal 2022

Fiscal 2023

Sales

283,111

321,577

Segment profit

25,082

Sales

20,558Segment profit(1,764)

1,214

2,978

－

Sales

12,677

11,540(1,136)

(9.0)

(146)

135

282

－

Segment profit(Note) Segment sales include intersegment transactions.

-2-

ChangeChange (%)

38,465

13.6

24,135

(946)

(3.8)

25,685

5,127

24.9

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023

(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 iscooperating with medical institutions, using patient medication notebooks to ensure integrated and continuous
monitoring of patient medication, and providing services for home-based healthcare.
Ahead of the start of the Ministry of Health, Labour and Welfare’s (MHLW) new digitalelectronic prescriptions
management service in January 2023, the Group took part in a MHLW pilot project launched at the end of
October 2022 to establish operational processes, implement advanced initiatives, build up good practice anddevelop guidelines. The Group’s pharmacies nationwide are now progressively upgrading operating
environments to ensure compatibility with the new digital prescriptions. Going forward, we will adapt ourbusiness to these and other developments in the sector to ensure patients can continue to reliably accessprescription medication with peace of mind.
In business development, earnings were supported by new store openings and growth in store openings
compared with the previous fiscal year, including the consolidation of approximately 100 stores operated by
Pharmacy Holdings Co., Ltd. in May 2022. We continue to target further business expansion through a strategy
of actively opening large pharmacies and pursuing M&A deals that emphasize investment returns, while also
improving pharmacy operating efficiency.
During the fiscal year, the Group opened a total of 141 dispensing pharmacies, including those acquired
through M&A deals, and closed 24 dispensing pharmacies and sold 7, resulting in a total of 1,209.
(Cosmetic and drug store business)
In the cosmetic and drug store business, the COVID-19 pandemic continued to impact performance, but wereviewed and overhauled our portfolio of original brands and optimized costs. In the fiscal year under review,
the business moved into profit, supported by steady growth in the number of customers after mobility restrictions
were eased, and by measures to optimize costs.
During the same period, the Group opened 8 cosmetic and drug stores and closed 8 stores, resulting in a
total of 78 cosmetic and drug stores at the end of the fiscal year.
(2) Overview of financial position for the fiscal year under review
The balance of total assets at the end of the fiscal year increased ¥19,288 million from the end of the previous
fiscal year to ¥231,750 million. This mainly reflected increases for goodwill, merchandise and other assets dueto the opening of new stores and dispensing pharmacies, including locations acquired through M&A.
The balance of liabilities at the end of the fiscal year under review increased by ¥11,753 million to ¥105,204
million.
The balance of short- term and long-term debts increased by ¥233 million to ¥8,691 million.
Total net assets increased by ¥7,535 million to ¥126,546 million and the shareholders’ equity ratio decreased
1.4 percentage points to 54.6%.
(3) Overview of cash flows for the fiscal year under review
In the fiscal year under review, cash on hand and in banks (“cash”) decreased ¥13,252 million year on yearto ¥46,217 million.
Cash flows from each category and their relevant factors are as follows.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥20,267 million, compared with net cash provided of ¥26,156
million in the previous fiscal year.
The main items that were positive for cash flow were income before income taxes of ¥15,882 million, as well
as depreciation and amortization of ¥5,529 million and amortization of goodwill of ¥4,310 million related to-3-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023

business expansion through new store openings and M&A.
Income taxes paid of ¥7,897 million and increase in inventories of ¥4,948 million were the main negative items
for operating cash flow.
(Cash flows from investing activities)
Net cash used in investing activities was ¥22,292 million, compared with net cash used of ¥13,943 million in
the previous fiscal year.
This mainly reflected payments of ¥14,614 million for purchases of shares in subsidiaries resulting in change
in scope of consolidation related to shares acquired in nine companies through M&A deals, ¥9,549 million forpurchases of property, plant and equipment related to the opening of new cosmetic and drug stores anddispensing pharmacies.
(Cash flows from financing activities)
Net cash used in financing activities was ¥11,237 million, compared with net cash used in ¥7,753 million in
the previous fiscal year.
The main items were net proceeds of ¥9,038 million from short-term and long-term debt repayment andproceeds, and cash dividends paid of ¥1,932 million.
Changes in the Group’s cash flow indicators are shown below.
Year ended April
30, 2020

Year ended April
30, 2021

Year ended April
30, 2022

Year ended April
30, 2023

Shareholders’ equity ratio (%)

57.3

56.8

56.0

54.6

Equity ratio based on market value (%)

110.4

105.6

96.6

85.5

Debt redemption term (years)

0.4

0.8

0.3

0.4

Interest coverage ratio (times)

276.8

334.7

671.8

384.8

Notes:

Shareholders’ equity ratio = Equity capital / total assets
Equity ratio based on market value = market capitalization / total assets
Debt redemption term = interest-bearing debt / operating cash flows
Interest coverage ratio = operating cash flows / interest paid
*All indicators are calculated based on consolidated financial data.
*Interest-bearing debt includes all liabilities recorded on the balance sheet on which interest is being paid.
*Operating cash flows and interest paid are calculated using the cash flows from operating activities and the interest paid on
the consolidated statements of cash flows.

-4-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023

(4) Future outlook
In the next fiscal year (May 1, 2023 to April 30, 2024; fiscal 2024), we will continue to expand the dispensing
pharmacy business by developing new pharmacies and actively using M&A.
In the cosmetic and drug store business, we will continue to open AINZ & TULPE stores in prime locations,create appealing retail displays by strengthening product lineups in order to attract more customers, andoptimize costs.
Amid heightened geopolitical risks, we forecast high raw material and fuel prices and sustained price inflationin various product categories. We also plan to invest in IT systems to enhance the functionality of apps toimprove customer service, and invest in strengthening the management base and promoting human capitalmanagement. Costs are likely to increase due to these factors. As a result, we forecast higher sales but lower
profits year on year.
Our forecasts for fiscal 2024 (May 1, 2023 to April 30, 2024) are as follows.
Fiscal 2023
(Million yen)

Fiscal 2024
(Million yen)

Change(Million yen)

Change(%)

Net sales

358,742

375,000

16,257

4.5

Ordinary profit

17,06416,302

(762)

(4.5)

Profit attributable to owners of parent

9,234

8,250

(984)

ሺ10.7)

2. Basic Stance on Selection of Accounting Standards
The Group has adopted Japanese accounting standards in order to facilitate comparison with other domestic
companies in the same sector. The Group plans to appropriately address the adoption of International Financial
Reporting Standards (IFRS) while taking into account trends in Japan and overseas.

-5-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023

3. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheet(Million yen)

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
Accumulated depreciation
Buildings and structures, net
LandConstruction in progress
Other property, plant and equipment
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans
Deferred tax assets
Net defined benefit asset
Leasehold and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-6-

Fiscal 2022
(As of April 30, 2022)

Fiscal 2023
(As of April 30, 2023)

59,729
10,11014,568222
306
11,832
3,995
100,765

46,796
13,24921,299286
355
11,9694,348
98,30534,876(17,364)
17,5128,581
1,804
10,000(7,262)
2,737
30,636

41,127(19,720)
21,407
10,602
3,904
11,665(8,120)3,545
39,45936,352
4,866
41,21946,4435,900
52,343

2,503
196
5,319
20
22,785
10,309(1,294)
39,840111,696
212,461

2,720
704
5,990
23
24,507
8,007
ሺ312)
41,641
133,444
231,750

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023
(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
Lease obligations
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
Valuation differences 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-7-

Fiscal 2022
(As of April 30, 2022)

Fiscal 2023
(As of April 30, 2023)

50,756
2,643
4,391
15,415
2,713
18
544
5,321
81,80558,698
3,670
3,328
18,232
3,215
22
532
5,284
92,986

5,815
9
3,578
2,242
11,64593,450

5,021
32
4,498
2,664
12,218105,204

21,89420,50078,661(2,018)
119,038

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

(39)
(75)
(114)
86
119,010
212,461

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

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses
Promotion expenses
Salaries, allowances and bonuses
Provision for bonuses to employees
Provision for bonuses to directors
Retirement benefit expenses
Legal and employee benefits expenses
Correspondence and transportation expenses
Lease expenses
Rent expenses
Depreciation expenses
Amortization of goodwill
Taxes
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodGains on investments in partnership
Commissions received
Real estate rental revenue
Gains on donations of fixed assets
Consignment income
Technical advisory fee
Subsidies for employment adjustment
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on sales of receivables
Rental expenses on real estate
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary profit-8-

Fiscal 2022
(May 1, 2021
to April 30, 2022)
316,247
266,275
49,971

Fiscal 2023
(May 1, 2022
to April 30, 2023)
358,742305,043
53,698

1,875
595
7,457
972
18
281
2,626
997
70
5,042
1,234
4,133
1,587
7,938
34,832
15,139

2,229
161
7,327
1,049
22
327
2,920
1,168
87
5,528
1,529
4,257
2,222
8,862
37,69416,004

41
45

54
62

2

－

83
22
384
18
172
74
173
303
1,323

28
17
222
32
211
68
323
356
1,379

38
87
219
6
69
421
16,041

52
103
51
48
62
318
17,064

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023
(Million yen)

Fiscal 2022
(May 1, 2021
to April 30, 2022)
Extraordinary income
Gain on sales of non-current assets
Gain on sale of business
Surrender value of insurance
Gain on step acquisitions
Other
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses on fixed assets
Loss on valuation of investment securities
Loss on cancellation of rental contracts
Other
Total extraordinary losses
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent-9-

Fiscal 2023
(May 1, 2022
to April 30, 2023)

200
13
5
131
55
406

11
73
35
－
1
121

329
2,302
116
493
80
3,322
13,125
6,925
(899)
6,025
7,100
8
7,092

193
906
91
－
112
1,303
15,882
6,844
(205)
6,638
9,244
9
9,234

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023

Consolidated statement of comprehensive income

ProfitOther comprehensive income
Unrealized holding gains (losses) on securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive gain
Total comprehensive income
Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 10 -

Fiscal 2022
(May 1, 2021
to April 30, 2022)
7,100(Million yen)
Fiscal 2023
(May 1, 2022
to April 30, 2023)
9,244

(26)
52
26
7,126
7,118

31
170
201
9,446
9,436

8

9

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023

(3) Consolidated statement of changes in net assets
Fiscal 2022 (May 1, 2021 to April 30, 2022)(Million yen)
Shareholders’ equity
Common stock
Balance at the beginning ofcurrent year

Capital surplus

21,894Retained earnings

20,50073,506

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

Total shareholders’equityTreasury stock(3)

115,899

10

21,89420,5001073,517(3)

115,909

Net changes during the year
Cash dividends paid

(1,948)(1,948)

Profit attributable toowners of parent

7,092

7,092

Acquisition of treasurystock(2,015)(2,015)

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

–

–

5,143

(2,015)

3,128

21,89420,50078,661(2,018)

119,038

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

Remeasurements ofdefined benefit plans

(12)

(128)

Total accumulated othercomprehensive income(loss)

Non-controllinginterests

(141)

78

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

Total net
assets

115,837
10

(12)

(128)

(141)

78

115,847

Net changes during the year
Cash dividends paid

(1,948)

Profit attributable toowners of parent

7,092

Acquisition of treasurystock(2,015)

Net change in items otherthan shareholders’ equity

(26)

52

26

8

34

Total changes during the
year

(26)

52

26

8

3,162

Balance at the end ofcurrent year

(39)

(75)

(114)

86

119,010- 11 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023

Fiscal 2023 (May 1, 2022 to April 30, 2023)(Million yen)
Shareholders’ equity
Common stock
Balance at the beginning ofcurrent year

Capital surplus

21,894Retained earnings

20,500Total shareholders’equityTreasury stock

78,661(2,018)

119,038

Net changes during the year
Cash dividends paid

(1,932)(1,932)

Profit attributable toowners of parent

9,234

9,234

3

Disposal of treasury stock

18

21

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

–

3

7,302

18

7,323

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

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

Remeasurements ofdefined benefit plans

(39)

(75)

Total accumulated othercomprehensive income(loss)

Non-controllinginterests

(114)

86

Total net
assets119,010

Net changes during the year
Cash dividends paid

(1,932)

Profit attributable toowners of parent

9,234
21

Disposal of treasury stock
Net change in items otherthan shareholders’ equity

31

170

201

9

211

Total changes during the
year

31

170

201

9

7,535

Balance at the end ofcurrent year

(7)

95

87

96

126,546- 12 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023

(4) Consolidated statement of cash flows(Million yen)

Fiscal 2022
(May 1, 2021
to April 30, 2022)
Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Amortization of goodwill
Impairment losses on fixed assets
Increase (decrease) in allowance for doubtful accounts
Gain on step acquisitions
Increase in defined benefit liability
Increase in contract liabilities
Gain on transfer of business
Increase in allowance for bonuses to employees
Decrease in allowance for bonuses to directors
Interest and dividend income
Interest expenses
Share of profit of entities accounted for using equity
methodGains on investments in partnerships
Gains on donations of property, plant and equipment
Gains on sales of investments in securities
Loss on valuation of investment securities
Losses on disposal and sales of fixed assets
Decrease in accounts receivable(Increase) decrease in inventories
Increase in other assets
Increase in other accounts receivable
Increase (decrease) in accounts payable
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities- 13 -

Fiscal 2023
(May 1, 2022
to April 30, 2023)

13,125
4,792
4,133
2,302
(2)
(131)
364
105
(13)
109
2
(87)
38

15,882
5,529
4,310
906
(27)
－
(393)
(12)
(72)
41
3
(116)
52

(2)

－

(83)
(18)
(34)
116
128
4,111
(171)
(359)
(2,376)
3,235
1,217
－
30,50289(38)(4,396)26,156

(22)
(32)
16
91
182
795
(4,948)
(231)
1,007
3,013
2,032
86
28,094123(52)(7,897)
20,267

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023
(Million yen)

Fiscal 2022
(May 1, 2021
to April 30, 2022)
Cash flows from investing activities
Payments for purchases of property, plant andequipment
Proceeds from sales of property, plant and equipment
Payments for purchases of investments in securities
Proceeds from sales of investments in securities
Purchases of subsidiaries’ shares resulting in obtaining
controls
Payments for loans receivable
Proceeds from collections of loans receivable
Payments for purchase of intangible fixed assets
Proceeds from sales of intangible assets
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Increase in other investments
Proceeds from withdrawal of time deposits
Payments for time deposits
Other, net
Net cash used in investing activities
Cash flows from financing activities
Net decrease in short-term loans payable
Proceeds from long-term debts
Repayments of long-term debts
Payments for purchase of treasury stock
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the year
Increase in cash and cash equivalents resulting frommerger with unconsolidated subsidiaries
Cash and cash equivalents at end of the year

- 14 -

Fiscal 2023
(May 1, 2022
to April 30, 2023)(5,880)(9,549)

2,131
(905)
819

1,509
(511)
555

(2,322)(14,614)(53)
340(2,535)
10(3,842)(122)
294(2,606)3(2,444)

1,442

1,169

(3,186)47(9)
1(13,943)

1,238
2,993
(209)
0
(22,292)(6)300(3,842)(2,015)(1,948)(241)(7,753)
4,460
55,009(484)
10(8,564)–(1,932)(266)(11,237)(13,262)
59,470–959,470

4
6,217

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023

(5) Notes to consolidated financial statements(Notes on the premise of a going concern)
There are no applicable matters to be reported.
(Changes in accounting policies)(Application of Accounting Standard for Fair Value Measurement)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 31,
June 17, 2021; “Fair Value Measurement Standard”), etc. from the beginning of the fiscal year under review. In
accordance with the transitional treatment stipulated in Paragraph 27-2 of the “Fair Value Measurement
Standard”, the Company has decided to apply the new accounting policies in the Accounting Standard for Fair
Value Measurement going forward. These changes have no impact on the Company’s consolidated financial
statements.

(Changes in presentation of financial statements)(Consolidated statement of cash flow)
In cash flows from investing activities, "Payments for investments in capital" and "Proceeds from returns ofinvestments in capital" shown as separate items in the previous fiscal year, are included in "Other" from thefiscal year under review. In addition, in cash flows from financing activities, "Redemption of bonds" and"Repayments of lease obligations" shown as separate items in the previous fiscal year, are included in "Other"from the fiscal year under review.
The consolidated financial statements for the previous fiscal year have been restated to reflect these nonmaterial changes.
As a result, in the consolidated statement of cash flow for the previous fiscal year, in cash flows from investing
activities, "Payments for investments in capital" of ¥(0) million and "Proceeds from returns of investments incapital" of ¥1 million have been reclassified as "Other, net" of ¥1 million, and in cash flows from financing
activities, "Redemption of bonds" of ¥(134) million and "Repayments of lease obligations" of ¥(107) million havebeen reclassified as "Other, net" of ¥(241) million.

- 15 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023

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

- 16 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023

3. Sales, income (loss), assets, liabilities and other items for each reportable segment
I. Fiscal 2022 (May 1, 2021 to April 30, 2022)(Million yen)
Reportable segments
Adjustments(Note) 1

Consolidated(Note) 2

316,247–

316,247

100

100

(100)

–

20,55812,677

316,347(100)

316,247

25,082(1,764)(146)

23,170(7,128)16,041

166,198

12,8109,269

188,279

24,181

212,461

Depreciation
and amortization

2,531

534

287

3,352

517

3,870

Amortization of
goodwill

3,985

6

140

4,133

–

4,133

Impairment losses

1,121

1,021

127

2,270

32

2,302

Increase of tangible
and intangible assets

6,162

1,028

435

7,626

1,287

8,913

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

Sales to third parties

283,111

20,558

12,576

Intersegment sales
and transfers––

Total sales

283,111

Segment profit (loss)
Segment assets

Total

Sales

Other

Notes:

1. Segment profit (loss) in “Adjustments” totaling ¥(7,128) million includes ¥8,170 million in corporate expenses,¥(1,164) million in (income) losses that may not be allocated to the reporting segments, and ¥121 million inelimination due to intersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions and the system
logistics division of the parent company, which are not part of the reportable segments.
Segment assets in “Adjustments” totaling ¥24,181 million consist mainly of assets associated with theadministrative divisions and the system logistics division of the parent company, which are not part of thereportable segments, and the difference in elimination of intersegment transactions.
2. Segment profit (loss) is adjusted with the ordinary profit of consolidated statements of income.

- 17 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023
II. Fiscal 2023 (May 1, 2022 to April 30, 2023)(Million yen)
Reportable segments
Adjustments(Note) 1

Consolidated(Note) 2

358,742－358,742

61

61

(61)

－

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

Sales to third parties

321,577

25,685

11,479Intersegment sales
and transfers

－

－

Total

Sales

Total sales

321,577

25,685

11,540358,803(61)

358,742

Segment profit (loss)

24,135

1,214

135

25,484(8,420)17,064

Segment assets

195,327

13,628

9,638

218,595

13,155

231,750

Depreciation
and amortization

3,118

426

232

3,777

767

4,545

Amortization of
goodwill

4,163

6

140

4,310

－

4,310

Impairment losses

730

175

－

906

－

906

Increase of tangible
and intangible assets

8,317

551

1,021

9,891

2,039

11,931

Other

Notes:

1. Segment profit (loss) in “Adjustments” totaling ¥(8,420) million includes ¥9,695 million in corporate expenses,¥(1,304) million in (income) losses that may not be allocated to the reporting segments, and ¥29 million inelimination due to intersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions and the system
logistics division of the parent company, which are not part of the reportable segments.
Segment assets in “Adjustments” totaling ¥13,155 million consist mainly of assets associated with theadministrative divisions and the system logistics division of the parent company, which are not part of thereportable segments, and the difference in elimination of intersegment transactions.
2. Segment profit (loss) is adjusted with the ordinary profit of consolidated statements of income.

- 18 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023

Related information
Fiscal 2022 (May 1, 2021 to April 30, 2022)
1. Information by product and service
This disclosure has been omitted because the same information is disclosed under Segment information.
2. Information by region(1) Net sales
This disclosure has been omitted as the Group’s sales to external customers in Japan accounted for morethan 90% of sales on the consolidated statement of income.
(2) Property, plant and equipment
This disclosure has been omitted because the Group had no property, plant and equipment located outside
Japan at the balance sheet date.
Fiscal 2023 (May 1, 2022 to April 30, 2023)
1. Information by product and service
This disclosure has been omitted because the same information is disclosed under Segment information.
2. Information by region(1) Net sales
This disclosure has been omitted as the Group’s sales to external customers in Japan accounted for morethan 90% of sales on the consolidated statement of income.
(2) Property, plant and equipment
This disclosure has been omitted because the Group had no property, plant and equipment located outside
Japan at the balance sheet date.
Information regarding impairment losses of fixed assets for each reported segment
Fiscal 2022 (May 1, 2021 to April 30, 2022)
This disclosure has been omitted because the same information is disclosed under Segment information.
Fiscal 2023 (May 1, 2022 to April 30, 2023)
This disclosure has been omitted because the same information is disclosed under Segment information.

- 19 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2023

Information about goodwill amortization amount and year-end unamortized balance for eachreportable segment
Fiscal 2022 (May 1, 2021 to April 30, 2022)(Million yen)
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

Corporate /Eliminations

Amortization of fiscal year

3,985

6

140

–

4,133

Balance at the end of fiscal year

35,263

47

1,041

–

36,352

Total

Fiscal 2023 (May 1, 2022 to April 30, 2023)(Million yen)
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

Corporate /Eliminations

Amortization of fiscal year

4,163

6

140

–

4,310

Balance at the end of fiscal year

45,50041

900–

46,443

Total

Information about gains on bargain purchase for each reported segment
Fiscal 2022 (May 1, 2021 to April 30, 2022)
There are no applicable matters to be reported.
Fiscal 2023 (May 1, 2022 to April 30, 2023)
There are no applicable matters to be reported.
(Per-share information)
Fiscal 2022
(May 1, 2021 to April 30, 2022)

Fiscal 2023
(May 1, 2022 to April 30, 2023)

Net assets per share

3,385.51 yen

3,599.47 yen

Earnings per share

201.47 yen

262.87 yen

Notes: 1. Diluted earnings per share is not mentioned since dilutive shares do not exist.
2. The basis of calculation of net assets per share and earnings per share is as follows.
Fiscal 2022
Fiscal 2023
(May 1, 2021 to April 30, 2022)(May 1, 2022 to April 30, 2023)
Profit attributable to owners of parent(million yen)

7,092

9,234

Amount not attributable to ordinary
shareholders (million yen)––

Profit attributable to owners of theparent pertaining to common stock(million yen)

7,092

9,234

35,202,302

35,129,116

Average number of shares outstanding(shares)(Material subsequent events)
There are no applicable matters to be reported.

- 20 -