Summary of Financial Statements for the Third Quarter of Fiscal Year Ending April 2021
[Japan GAAP] (Consolidated)
March 2, 2021
Name of listed company:

AIN HOLDINGS INC.

Exchange listed on:First Section 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:
March 17, 2021-

Start of dividend payment:
Supplementary documents for quarterly
results:
Quarterly results briefing:

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

No(Amounts are rounded down to the nearest million yen.)
1. Consolidated results for the third quarter of fiscal year ending April 30, 2021 (May 1, 2020 to January 31, 2021)(1) Consolidated operating results(Percentage figures show year-on-year changes.)
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Million yen%

Million yen%

Million yen%

Million yen%

220,135

0.0

6,813

(45.3)

7,845(39.7)

4,575(35.7)

Nine months ended January 31, 2020
220,085
8.7
12,4474.5
13,008
4.7(Note) Comprehensive income:Nine months ended January 31, 2021: ¥4,603 million (-35.2%)
Nine months ended January 31, 2020: ¥7,100 million (+5.8%)

7,110

4.9

Nine months ended January 31, 2021

Earnings
per share

Diluted earnings
per share
Yen

Yen

Nine months ended January 31, 2021

129.16-Nine months ended January 31, 2020

200.71-(2) Consolidated financial position
Total assets
As of January 31, 2021
As of April 30, 2020
(Reference) Shareholders’ equity:

Net assets

Shareholders’ equity ratio

Million yen

Million yen%

198,772
193,451

113,657
111,003

57.2
57.3

As of January 31, 2021: ¥113,607 million As of April 30, 2020: ¥110,915 million

2. Dividends

Year ended April 30, 2020

End of firstquarterYen-

End of second
quarter
Yen
0.00

0.00
Year ending April 30, 2021
Year ending April 30, 2021
(forecast)(Note) Revision to the most recently announced dividend forecasts: No

Dividend per share
End of third
quarterYen-

End of year

Full year

Yen

Yen

55.00

55.00

55.00

55.00

-

3. Consolidated financial forecasts for the fiscal year ending April 30, 2021 (May 1, 2020 to April 30, 2021)(Percentage figures show year-on-year changes.)
Profit attributable toEarnings
Net sales
Operating income
Ordinary income
owners of parent
per share
Million yen%
Million yen%
Million yen%
Million yen%
Yen
Full year

300,000

2.5

9,200

(42.7)

10,000(40.6)

5,000(45.5)

141.13(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 pages 8-9 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 January 31, 2021 35,428,212 shares As of April 30,2020
stock):
2) Number of shares held in
As of January 31, 2021
816 shares As of April 30, 2020
treasury:
3) Average number ofNine months ended
Nine months ended
35,427,426 sharesshares outstanding:January 31, 2021
January 31, 2020

35,428,212 shares
728 shares
35,427,484 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 Third Quarter of the Fiscal Year Ending April 30, 2021

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 statements of income..................................................................................................................... 6
Quarterly consolidated statements 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(Segment information, etc.) ................................................................................................................................................ 8

1

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2021

1. Qualitative information on consolidated results for the period under review(1) Consolidated operating results
During the first nine months of the current fiscal year (May 1, 2020 to January 31, 2021), the Japanese economy continued
to face challenging conditions due to the impact of the COVID-19 pandemic. However, amid signs of a pickup in consumer
spending and other areas, policy effects and other factors are expected to help sustain a continued upturn in the economy.
In this economic environment, the AIN HOLDINGS Group (the Group) worked to expand its business and increase
earnings by opening new dispensing pharmacies and cosmetic and drug stores and by reviewing its cost structure.
In pharmacy and store operations, the Group rigorously enforced measures to prevent infection to reassure patients andcustomers, and worked to ensure the continued provision of healthcare and retail services by implementing strict measures
to protect employees from infection.
In addition, in December 2020, we identified key sustainability issues that the Group needs to address (materiality) in orderto achieve the sustainable development goals (SDGs). Through businesses that support human health and beauty, theGroup will work to achieve sustainability management with the aim of generating sustainable growth and creating social,environmental and economic value.
In the first nine months of the fiscal year, net sales was ¥220,135 million, nearly the same level as the period of theprevious year, operating income decreased 45.3% to ¥6,813 million, ordinary income decreased 39.7% to ¥7,845 million,
and profit attributable to owners of parent decreased 35.7% to ¥4,575 million.
Financial results by business segment are as follows.
(Dispensing pharmacy business)
Since September 2020, under partial revisions to the Act on Securing Quality, Efficacy and Safety of Products Including
Pharmaceuticals and Medical Devices (Revised Pharmaceuticals and Medical Devices Act), which are being implemented
incrementally, dispensing pharmacies have been allowed to provide online drug treatment guidance nationwide inaccordance with certain rules. To ensure our pharmacists and dispensing pharmacies fulfill their primary care role, the Group
continues to implement pharmaceutical management based on the integrated and continuous management of drug-related
information through cooperation with local medical service providers, the use of patient medication notebooks and othermeans. The Group also enhanced drug treatment guidance and created a system that enables all dispensing pharmacies toprovide online drug guidance so that every patient can easily access medical services in their local community.
In November 2020, we conducted a number of trials with the goal of building a next-generation healthcare service modelthat covers online drug treatment guidance through to the delivery of medicines to patients. Specifically, we implemented a
trial using drones to deliver prescription medicines to patients on the island of Nokonoshima, Fukuoka City, and conducted
online drug treatment guidance for patients in Ina City, Nagano Prefecture using a video conferencing system and healthcare
mobility vehicles fitted with medical equipment.
In business development, the Group is pushing ahead with further business expansion and measures to improve theefficiency of pharmacy operations, including actively opening large pharmacies and tightening the criteria for M&A deals, aswell as using its pharmacy opening strategy to withdraw from small-scale locations.
Sales and profits declined year on year, reflecting an increase in the duration of prescriptions during the COVID-19
pandemic, which led to a rise in the average unit price per prescription but a decline in the number of prescriptions. The
closure and business transfer of 64 pharmacies in the previous fiscal year to improve the efficiency of pharmacy operations
also had an impact. However, the number of prescriptions is now recovering at a moderate pace.
As a result, for the first nine months of the fiscal year, the dispensing pharmacy business reported sales of ¥194,284
million, down 1.3% year on year, and segment income of ¥13,769 million, down 11.6%.
During the same period, the Group opened a total of 15 dispensing pharmacies, including those acquired through M&A
deals, and closed 12 dispensing pharmacies and transferred 34, resulting in a total of 1,057.
(Cosmetic and drug store business)
The cosmetic and drug store business continued to face a challenging market environment due to factors such as theimpact of the COVID-19 outbreak. Against that backdrop, the Group continued to open ainz & tulpe cosmetic and drug storesin major metropolitan areas, while also shifting its focus in store opening strategy to areas around terminus stations incommuter towns, where demand is strong. The Group also strategically developed retail displays tailored to thecharacteristics of each store. In addition, the Group is using the official AINZ & TULPE WEBSTORE to improve convenienceand service levels for customers.
As a result, for the first nine months of the fiscal year, the cosmetic and drug store business reported a decrease in salesof 28.3% year on year to ¥14,386 million, and segment loss was ¥1,507 million compared with the income of ¥575 million ayear earlier.
2

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2021

During the same period, the Group opened seven ainz & tulpe cosmetic and drug stores and closed five stores, resulting
in a total of 65 cosmetic and drug stores at the end of the third quarter.
(Other businesses)
Net sales from other businesses increased 244.9% year on year to ¥11,542 million, mainly reflecting the acquisition ofretail shop business in March 2020, and segment loss was ¥479 million compared with the loss of ¥170 million a year earlier.
(2) Consolidated financial position
The balance of total assets at the end of the third quarter inclined by ¥5,321 million from the end of the previous fiscal
year to ¥198,772 million. That mainly reflected declines for goodwill and for other accounts receivable, partially offset byincreases for cash on hand and in banks and for other investments and other assets.
The balance of liabilities increased ¥2,667 million to ¥85,114 million.
The balance of short- term and long-term debts increased by ¥6,467 million to ¥12,542 million.
Total net assets increased by ¥2,654 million to ¥113,657 million and the shareholders’ equity ratio decreased 0.1
percentage points to 57.2%.
(3) Forecast of consolidated financial results and other forward-looking information
The Group has not revised its earnings forecasts for the full fiscal year, announced on December 3, 2020.

3

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2021

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

Fiscal year endedApril 30, 2020
(As of April 30, 2020)

AssetsCurrent assets
Cash on hand and in banks
Notes and accounts receivable
Merchandise
Supplies
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
Deposits and guarantees
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Deferred assets
Total assets

4(Million yen)
Nine months ended
January 31, 2021
(As of January 31, 2021)

46,321
13,653
15,035
286
208
8,997
3,299
(1)
87,80254,756
11,86615,320
277
135
6,724
3,165
92,246

16,60910,9603,304
30,874

16,333
10,401
3,757
30,492

42,123
2,792
44,916

39,5703,348
42,9192,295
4,211
19,144
5,834(1,644)29,841
105,632
15
193,451

2,389
4,250
19,3908,611(1,528)33,113
106,526
198,772

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2021

Fiscal year endedApril 30, 2020
(As of April 30, 2020)

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
Net defined benefit liability
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 loss
Unrealized holding losses on securities
Remeasurements of defined benefit plans
Total accumulated other comprehensive loss
Non-controlling interests
Total net assets
Total liabilities and net assets

5(Million yen)
Nine months ended
January 31, 2021
(As of January 31, 2021)

47,187
3,642
3,356
13,094
2,338
16
463
4,600
74,70046,7003,975
375
14,240
1,082
7
496
4,318
71,197

2,432
3,124
2,189
7,747
82,447

8,567
3,278
2,071
13,917
85,114

21,89420,50068,758(2)
111,151

21,89420,50071,385(2)
113,778

(77)
(159)
(236)
88
111,003
193,451

(49)
(121)
(170)
50
113,657
198,772

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2021

(2) Quarterly consolidated statements of income and comprehensive income
Quarterly consolidated statements of income
Nine months ended
January 31, 2020
(May 1, 2019 toJanuary 31, 2020)

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
Subsidy income
Other non-operating income
Total non-operating income
Non-operating expenses
Interest expenses
Losses on sales of accounts receivables
Real estate rental expenses
Other non-operating expenses
Total non-operating expenses
Ordinary income
Extraordinary income
Gains on sales of fixed assets
Gains on transfer of business
Gains on sales of shares of subsidiaries and affiliates
Surrender value of insurance
Other extraordinary income
Total extraordinary income
Extraordinary losses
Losses on disposal and sales of fixed assets
Impairment losses on fixed assets
Loss on temporary store closures
Other extraordinary losses
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

6(Million yen)
Nine months ended
January 31, 2021
(May 1, 2020 toJanuary 31, 2021)

220,085
184,284
35,801
23,353
12,447220,135
186,976
33,15926,346
6,813

46
36
12
304
134
301
835

33
43
15
134
141
466
454
1,288

53
49
101
70
274
13,008

37
58
113
47
256
7,845

34
313
0
1
349

18
383
111
11
30
555

415
84
193
693
12,664
5,554
7,109
(0)
7,110

216
64
52
163
497
7,903
3,366
4,537
(38)
4,575

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2021

Quarterly consolidated statements of comprehensive income(Million yen)
Nine months ended
January 31, 2021
(May 1, 2020 toJanuary 31, 2021)

Nine months ended
January 31, 2020
(May 1, 2019 toJanuary 31, 2020)

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

7

7,109

4,537

(23)
14
(8)
7,100
7,101

27
38
65
4,603
4,641

(0)

(38)

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2021

(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.
(Segment information, etc.)
I Nine months ended January 31, 2020 (May 1, 2019 to January 31, 2020)
1. Net sales and income (loss) by reportable segment(Million yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Reportable segments
Adjustments(Note) 1

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses(1) Sales to third parties

196,753

20,071

3,260

220,085-

220,085(2) Intersegment sales

-

-

85

85

(85)

-

Total sales

196,753

20,071

3,346

220,171(85)

220,085

Segment income (loss)

15,569575(170)

15,974(2,966)

13,008

Total

Sales

Notes:

1. The adjustment of ¥(2,966) million to segment income (loss) includes ¥4,405 million in corporate expenses,¥(1,514) million in (income) losses that are not allocated to reportable segments, and ¥75 million in eliminations
due to intersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions and the system
logistics division of the parent company.
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.

8

AIN HOLDINGS INC. (9627) Summary of Financial Statements for the Third Quarter of the Fiscal Year Ending April 30, 2021

II Nine months ended January 31, 2021 (May 1, 2020 to January 31, 2021)
1. Net sales and income (loss) by reportable segment(Million yen)
Carried onquarterly
consolidated
statements ofincome(Note) 2

Reportable segments
Adjustments(Note) 1

Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses(1) Sales to third parties

194,284

14,386

11,464

220,135-

220,135(2) Intersegment sales

-

-

78

78

(78)

-

Total sales

194,284

14,386

11,542

220,213(78)

220,135

Segment income (loss)

13,769(1,507)(479)

11,782(3,936)

7,845

Total

Sales

Notes:

1. The adjustment of ¥(3,936) million to segment income (loss) includes ¥4,764 million in corporate expenses, ¥(947)
million in (income) losses that are not allocated to reportable segments, and ¥120 million in eliminations due tointersegment transactions.
Corporate expenses consist mainly of expenses associated with the administrative divisions and the system
logistics division of the parent company.
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.

9