Summary of Financial Statements for the First Quarter of Fiscal Year Ending April 2023
[Japan GAAP] (Consolidated)

September 2, 2022

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/

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, 2022–

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, 2023 (May 1, 2022 to July 31, 2022)(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, 2022
Three months ended July 31, 2021
(Note) Comprehensive income:Million yen%

Million yen%

Million yen%

Million yen%

81,470

8.6

2,753

5.4

3,089

7.9

1,704

30.2

75,011
5.0
2,611
124.3
2,864
73.1
Three months ended July 31, 2022: ¥1,695 million (+33.0%)
Three months ended July 31, 2021: ¥1,274 million (+49.5%)

1,309

54.6

Earnings
per share

Diluted earnings
per share
Yen

Yen

Three months ended July 31, 2022

48.53

–

Three months ended July 31, 2021

37.10

–

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

Net assets

Shareholders’equity ratio

Million yen

Million yen%

228,394

118,773

52.0

212,461

119,010

As of July 31, 2022: ¥118,687 million

56.0
As of April 30, 2022: ¥118,923 million

2. Dividends

Year ended April 30, 2022

End of firstquarter
Yen–

Dividend per share
End of third
quarterYen–
0.00

End of second
quarter
Yen–
Year ending April 30, 2023
Year ending April 30, 2023
0.00
(forecast)(Note) Revision to the most recently announced dividend forecasts: No–

End of year

Full year

Yen

Yen

55.00

55.00

60.00

60.00

3. Consolidated financial forecasts for the fiscal year ending April 30, 2023 (May 1, 2022 to April 30, 2023)(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
172,833
13.0
8,485
46.9
8,732
42.5
4,497
34.7
128.02monthsFull year
363,000
14.8
20,00032.1
20,50027.8
11,00055.1
313.15(Note) Revision to the most recently announced consolidated financial forecasts: No*Notes(1) Major changes in subsidiaries during the period (changes in specified subsidiaries resulting from changes in scope of
consolidation): No
Newly consolidated: –Excluded: –(2) Application of specified accounting methods for the preparation of quarterly consolidated financial statements: Yes(Note) For detail, please refer to “2. Quarterly consolidated financial statements and major notes (3) Notes on quarterly
consolidated financial statements” on page 8 of the Attachment.
(3) Changes in accounting principles, changes in accounting estimates, and restatement of revisions
1) Changes in accounting principles as a result of revisions to accounting standards, etc.:
Yes2) Changes in accounting principles other than 1):
No3) Changes in accounting estimates:
No4) Restatement of revisions:No(4) Number of outstanding shares (common stock)1) Number of outstanding
shares (including treasury
As of July 31, 2022
stock):
2) Number of shares held in
As of July 31, 2022
treasury:
3) Average number ofThree months ended
shares outstanding:July 31, 2022

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

35,428,212 shares

300,911 shares As of April 30, 2022

300,911 shares

Three months ended
July 31, 2021

35,293,974 shares

35,127,301 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, 2023

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

1

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2023

1. Qualitative information on consolidated results for the period under review(1) Consolidated operating results
During the first three months of the current fiscal year (May 1, 2022 to July 31, 2022), the Japanese economy continued
to face tough conditions due to the impact of the COVID-19 pandemic, but there were signs of a moderate pickup in consumer
spending and the wider economy amid rigorous measures to control the spread of infection. However, the outlook remains
uncertain due to risks related to fluctuations in financial and capital markets, rising raw material prices and supply-side
constraints.
In this economic environment, the AIN HOLDINGS Group (the Group) rigorously implemented measures to prevent the
spread of COVID-19 and worked to provide healthcare and retail services, in line with its mission to “contribute to local
healthcare” and “provide beauty and happiness” – two of the Group’s materiality issues. The Group is also actively working
to play its part in Japan’s local healthcare system, with dispensing pharmacies and pharmacists fulfilling their respectiveroles, such as carrying out antigen and PCR tests and providing antigen test kits, offering guidance over the phone to people
suffering from high fever, and promptly delivering pharmaceutical products.
In May 23, 2022 the Company acquired all the shares of Pharmacy Holdings Co. Ltd., which operates approximately 100
dispensing pharmacies nationwide, making it a subsidiary. The acquisition will allow the Group to further enhance patient
services by combining mutual business expertise across its chain of more than 1,200 pharmacies, increasing the Group’s
corporate value as part of community healthcare provision throughout Japan.
Recognizing the importance of creating a sustainable society amid the growing impact of climate change, the Group istackling another materiality issue, “protect the environment and reduce environmental impact.” In April 2022 the Groupendorsed the final report of the TCFD* and joined the TCFD Consortium. In addition, in July 2022, the Group adopted four
disclosure items from the TCFD recommendations and published them on its website. Going forward, we will continue efforts
to realize a sustainable society, aiming to achieve sustainability management by considering the needs of customers andother stakeholders and adapting the Group’s actions independently in order to generate sustainable corporate growth andcreate social, environmental and economic value.
In the first three months of the fiscal year, net sales increased 8.6% year on year to ¥81,470 million, operating profit
increased 5.4% to ¥2,753 million, ordinary profit increased 7.9% to ¥3,089 million, and profit attributable to owners of parent
increased 30.2% to ¥1,704 million.
*Task Force on Climate-Related Financial Disclosures, established by the Financial Stability Board (FSB) at the request of the G20 financeministers and central bank governors; the task force published its recommendations in its final report in June 2017.

Financial results by business segment are as follows.
(Dispensing pharmacy business)
The Group's dispensing pharmacies have been fully committed to tackling the COVID-19 pandemic, backed by a strong
sense of mission to play a role in community healthcare. This steadfast commitment to fulfilling the expected role ofpharmacies has included offering free antigen/PCR testing at approximately 800 pharmacies nationwide and selling antigen
test kits at almost all the Group’s pharmacies.
In addition, we believe it is important for our specialized medical institution coordination pharmacies, local community
coordination pharmacies and community pharmacies to work closely together to become the dispensing pharmacies neededby local communities. To achieve this aim, we are promoting initiatives to strengthen cooperation among pharmacies, suchas exploring the potential for information sharing and holding joint training sessions, so that we can provide beneficial, highquality pharmacy services to patients when they return to local family doctors from university hospitals and other key regional
hospitals. We will continue to work actively to improve the quality of prescription drug-based treatments and build acomprehensive community care system that enables patients to consistently access high-quality pharmacy services.
In business development, approximately 100 dispensing pharmacies operated by Pharmacy Holdings Co. Ltd. joined theGroup on May, 2022. The Group is targeting further business expansion through a strategy of actively opening large
pharmacies and using M&A deals that emphasize investment returns, while also improving pharmacy operating efficiency.
As a result, for the first three months of the fiscal year, the dispensing pharmacy business reported sales of ¥72,482 million,
up 8.5% year on year and segment profit of ¥4,731 million, down 3.0%.
During the period under review, the Group opened 117 new dispensing pharmacies, including those acquired through M&A
deals, closed five, and sold one, resulting in a total of 1,210.
(Cosmetic and drug store business)
The cosmetic and drug store business continued to face a challenging market environment due to the impact of the COVID19 pandemic, but the Group continued to reinforce the merchandise lineup and develop attractive retail areas, while also
opening stores in locations with good prospects for profitability and optimizing costs.
As a result, for the first three months of the fiscal year, the cosmetic and drug store business reported sales of ¥6,086
2

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2023

million, up 20.2% year on year and segment profit of ¥164 million compared with the loss of ¥503 million a year earlier.
During the same period, the Group opened two AINZ & TULPE stores and closed one store, resulting in a total of 79
cosmetic and drug stores at the end of the period.
(Other businesses)
Net sales from other businesses decreased 7.1% year on year to ¥2,920 million and segment profit decreased 63.3% to¥4 million.
(2) Consolidated financial position
The balance of total assets at the end of the first quarter increased by ¥15,932 million from the end of the previous fiscal
year to ¥228,394 million. This mainly reflected increases for goodwill and merchandise, etc. due to the opening of new storesand dispensing pharmacies, including sites acquired through M&A.
The balance of liabilities increased ¥16,169 million to ¥109,620 million. The main factors were increases for accounts
payable and borrowings.
The balance of short- and long-term borrowings increased by ¥6,926 million to ¥15,385 million. The main factor was thesubsidiary newly included in the scope of consolidation from the first quarter of the current fiscal year.
Total net assets decreased by ¥236 million to ¥118,773 million and the shareholders’ equity ratio decreased 4.0 percentage
points to 52.0%.
(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, 2023, which were released on June 3, 2022.

3

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2023

2. Quarterly consolidated financial statements and major notes(1) Quarterly 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, 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, 2022
(As of April 30, 2022)

Three months ended
July 31, 2022
(As of July 31, 2022)

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

46,863
12,697
19,287216
220
11,961
4,916
96,163

17,512
8,581
4,542
30,636

19,505
10,637
5,612
35,75536,352
4,866
41,21949,344
5,134
54,4792,503
5,319
22,785
10,526(1,294)
39,840111,696
212,461

2,649
5,957
23,234
11,448(1,293)
41,996132,231228,394

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

Three months ended
July 31, 2022
(As of July 31, 2022)

50,756
2,643
4,391
15,415
2,713
18
544
5,321
81,80559,462
4,167
1,361
17,343
2,362
12
584
6,109
91,402

5,815
3,578
2,252
11,64593,45011,2184,260
2,738
18,217
109,620

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

21,89420,50078,433(2,018)118,811

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

(53)
(69)
(123)
86
118,773
228,394

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2023

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

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
Share of profit of entities accounted for using equity
methodOther
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 sales of non-current assets
Gain on sale of businesses
Total extraordinary income
Extraordinary losses
Loss on sale and retirement of non-current assets
Impairment losses
Loss on cancellation of rental contracts
Other
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

6(Million yen)Three months ended
July 31, 2021
(May 1, 2021 toJuly 31, 2021)
75,011
63,95011,0608,448
2,611

Three months ended
July 31, 2022
(May 1, 2022 toJuly 31, 2022)
81,47069,827
11,643
8,890
2,753

10
16
2
231
43
13

12
31
5
49
50
73

2

–

107
426

171
394

11
19
101
41
174
2,864

14
23
4
16
58
3,089

26
0
27

1
4
5

30
6
118
31
186
2,704
1,400
1,304
(4)
1,309

65
20
–
11
98
2,996
1,292
1,703
(0)
1,704

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2023

Quarterly consolidated statement of comprehensive income

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

7(Million yen)Three months ended
July 31, 2021
(May 1, 2021 toJuly 31, 2021)
1,304

Three months ended
July 31, 2022
(May 1, 2022 toJuly 31, 2022)
1,703

(40)
10
(30)
1,274
1,279

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

(4)

(0)

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2023

(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 income before income taxes for the consolidated fiscal year after theapplication of tax effect accounting is reasonably estimated and the estimated rate is applied to income before income taxes
for the quarterly period.
(Changes in accounting policies)(Application of Accounting Standard for Fair Value Measurement, etc.)
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 first quarter. 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 Fair Value Measurement Standard going forward. These changes have no impact on the Company’squarterly consolidated financial statements.

8

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2023

(Segment information, etc.)
I Three months ended July 31, 2021 (May 1, 2021 to July 31, 2021)
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

66,828

5,063

3,119

75,011－75,011(2) Intersegment sales

－

－

23

23

(23)

－

66,828

5,063

3,143

75,034(23)

75,011

4,879

(503)

13

4,389

(1,524)

2,864

Total

Sales

Total sales
Segment profit (loss)
Notes:

1. The adjustment of ¥(1,524) million to segment profit (loss) includes ¥1,792 million in corporate expenses, ¥(347)
million in (income) loss that is not allocated to reportable segments, and ¥79 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.

9

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the First Quarter of the Fiscal Year Ending April 30, 2023

Ⅱ 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

4,731

164

4

4,900

(1,811)

3,089

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.

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 two subsidiaries were included in
the scope of consolidation from the first quarter of the current fiscal year following the acquisition of all shares in Pharmacy
Holdings Co. Ltd. In the first three months of the fiscal year, the increase in goodwill related to these companies was ¥12,921
million.
This goodwill amount is a tentative calculation, as the allocation of acquisition costs has not been completed.

10