Summary of Financial Statements for Fiscal Year Ended April 2020
June 4, 2020
AIN HOLDINGS INC.
First Section 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 30, 2020
Date of scheduled payment of dividends:
July 31, 2020
Date of filing securities report:
July 31, 2020
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:

No(Amounts are rounded down to the nearest million yen.)

1. Consolidated results for the fiscal year ended April 2020 (from May 1, 2019 to April 30, 2020)(Percentage figures show year-on-year changes.)(1) Consolidated operating results
Net salesYear ended April 30, 2020
Year ended April 30, 2019

Operating income

Profit attributable toowners of parent

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

292,615275,596

6.2
2.7

16,06816,0670.0(18.1)

16,822
16,6371.1(17.3)

9,179
9,029

1.7
(14.6)

Earnings per
share

Diluted earnings
per share(Note) Comprehensive income:Year ended April 30, 2020: ¥9,030 million (+0.8%)
Year ended April 30, 2019: ¥8,960 million (-13.6%)

Yen

Yen

259.11254.87

Year ended April 30, 2020
Year ended April 30, 2019

Return on equity%––

Operatingincome to net
sales

Ordinary income
to total assets
%

8.5
9.0

8.8
8.9

(Reference) Equity in earnings of affiliates: Year ended April 30, 2020: ¥ – million, Year ended April 30, 2019: ¥ – million(2) Consolidated financial position
Total assets

Net assets

Million yen

Million yen

193,451
189,021

As of April 30, 2020
As of April 30, 2019

(Reference) Equity capital: As of April 30, 2020: ¥110,915 million

Shareholders’ equity
ratio

Net assets per share

57.3
54.9

3,130.77
2,931.48%

111,003103,922

Cash flows frominvesting activities

Million yen
Year ended April 30, 2019

2. Dividends

Year ended April 30, 2019Year ended April 30, 2020
Year ending April 30, 2021
(forecast)

Cash flows fromfinancing activities

Million yen

17,747
14,788Year ended April 30, 2020

Yen

As of April 30, 2019: ¥103,855 million(3) Consolidated cash flows
Cash flows fromoperating activities

%

5.5
5.8

Million yen(11,474)(19,985)

Cash and cash
equivalents
at end of year

Million yen(7,837)(10,681)

Dividends per share
1Q-end2Q-end3Q-endYear-end

Annual

Yen

–
–

Yen

0.00
0.00

Yen

–
–

Yen

55.00
55.00

Yen

55.00
55.00

–

0.00

–

55.00

55.00

Total
dividends(annual)Million yen

1,948
1,948

45,93147,495

Dividends
payout ratio

Dividends on
net assets

21.6
21.2

1.9
1.8

(consolidated)%

23.8(consolidated)%3. Consolidated financial forecast for the fiscal year ending April 30, 2021 (from May 1, 2020 to April 30, 2021)
Net sales

Operating income

Million yen%

Million yen%

146,630
311,000

0.5
6.3

4,280
14,600(48.8)(9.1)

First half
Full year(Percentage figures show year-on-year changes.)
Net income
Ordinary income
Net income
per share
Million yen%
Million yen
%
Yen

4,460
15,000(49.1)(10.8)

2,400
8,200

(48.1)(10.7)

67.74
231.46* Notes(1) Major changes in subsidiaries during the fiscal year (changes in specified subsidiaries resulting in changes 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.: No
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, 2020
stock):
2) Number of shares held in
As of April 30, 2020
treasury:
3) Average number of
Fiscal year endedApril 30, 2020
shares outstanding:

35,428,212 shares As of April 30, 201935,428,212 shares

728 shares As of April 30, 2019728 sharesFiscal year ended

35,427,484 shares April 30, 201935,427,497 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.
(Explanation meeting)As part of efforts to prevent the spread of COVID-19, the Company will not hold an explanation meeting for institutional investors andanalysts.

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020
Contents of Attachment
1. Operating Results and Other................................................................................................................................................. 2(1) Overview of operating results for the current fiscal year .................................................................................................. 2(2) Overview of financial position for the current fiscal year .................................................................................................. 3(3) Overview of cash flows for the current fiscal year ............................................................................................................ 3(4) Future outlook .................................................................................................................................................................. 4(5) Risk information related to the COVID-19 outbreak ......................................................................................................... 4
2. Basic Stance on Selection of Accounting Standards ............................................................................................................. 5
3. Consolidated Financial Statements ....................................................................................................................................... 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 statements .................................................................................................................................. 15(Notes on the premise of a going concern) ........................................................................................................................ 15(Changes in presentation of financial statements) ............................................................................................................ 15(Additional information) .................................................................................................................................................... 15(Matters related to consolidated statements of income) ................................................................................................... 15(Segment information, etc) ................................................................................................................................................. 15(Per-share information) ...................................................................................................................................................... 19(Important subsequent events)........................................................................................................................................... 19-1-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020

1. Operating Results and Other(1) Overview of operating results for the current fiscal year
During the fiscal year ended April 30, 2020, the Japanese economy recovered at a moderate pace, supported
by improving corporate earnings and employment conditions. However, the economy weakened considerably
due to a rapid deterioration caused by the COVID-19 outbreak.
In this economic environment, the AIN HOLDINGS Group (the Group) worked to expand its business andincrease earnings. Specifically, the Group opened new dispensing pharmacies and used M&A to expand thebusiness. It also developed its cosmetic and drug store business.
For the fiscal year under review, net sales rose 6.2% year on year to ¥292,615 million, operating income
increased 0.0% to ¥16,068 million, ordinary income increased 1.1% to ¥16,822 million and profit attributable toowners of parent increased 1.7% year on year to ¥9,179 million.
(Dispensing pharmacy business)
The dispensing fee revisions in April this year included adjustments that normalize a greater emphasis on
appropriately evaluating the primary care functions of dispensing pharmacies in each community, as well as
revisions aimed at spurring a structural shift from dispensing focused on products to dispensing focused onservices.
To ensure our pharmacists and dispensing pharmacies fulfill their primary care role, the Group continues tobuild links with local medical service providers, strengthen pharmaceutical management and guidance basedon the integrated and continuous management of drug information using patient medication notebooks andother means, and promote wider use of generic drugs.
Also, in accordance with a government announcement from the Ministry of Health, Labour and Welfare(MHLW) on 10 April allowing patients to receive medical examinations and other health services via the internetor telephone for a limited period during the COVID-19 outbreak, the Group made preparations to accept
prescriptions at all pharmacies in line with the special measures and started providing guidance forpharmaceutical use via telephone and other channels as part of measures to prevent the spread of infection.
In business development, the Group is pushing ahead with further business expansion and measures toimprove the efficiency of pharmacy operations, including actively opening large pharmacies and tightening thecriteria for M&A deals, as well as adjusting its pharmacy opening strategy to withdraw from small-scale
pharmacies.
For the fiscal year under review, the dispensing pharmacy business reported higher sales and profits, withsales rising 7.7% year on year to ¥263,750 million and segment income increasing 13.7% to ¥20,850 million.
During the fiscal year, the Group opened a total of 20 dispensing pharmacies, including those acquired
through M&A deals, and closed 22 dispensing pharmacies and sold 42 as part of an overhaul of pharmacy
operations, resulting in a total of 1,088.
(Cosmetic and drug store business)
The cosmetic and drug store business continued to face a challenging market environment due to factors
such as a pullback in demand after the hike to consumption tax and the impact of the COVID-19 outbreak.
Against that backdrop, the Group continued to open ainz & tulpe cosmetic and drug stores in the majorurbanarea, as well as strategically develop sales areas at each store, based on the concept of creating stores
where customers would be happy to browse for an hour. The Group also released the official ainz & tulpe app
on October 1, 2019, creating an app version of its point card to improve convenience and service levels forcustomers.
However, as part of measures to prevent the spread of COVID-19, the Group temporarily closed or shorted
opening hours at many stores, leading to a steep drop in sales from late February.

-2-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020

As a result, for the fiscal year under review, the cosmetic and drug store business reported lower sales andprofits, with sales declining 2.0% year on year to ¥24,701 million and segment income falling 73.0% to ¥262
million.
During the same period, the Group opened 15 ainz & tulpe stores: ainz & tulpe bono SAGAMIONO(Sagamihara, Kanagawa Prefecture), ainz & tulpe ASAKUSA ROX (Taito Ward, Tokyo), ainz & tulpe PERIE
Chiba (Chiba, Chiba Prefecture) , ainz & tulpe KAWASAKI ZERO GATE (Kawasaki, Kanagawa Prefecture), ainz
& tulpe Pole Town 2 (Sapporo, Hokkaido), ainz & tulpe KASHIWA Modi (Kashiwa, Chiba Prefecture), ainz &tulpe SAKAE Central Park (Nagoya, Aichi Prefecture), ainz & tulpe OMIYA ARCHE (Saitama, Saitama
Prefecture), ainz & tulpe PERIE Kaihimmakuhari (Chiba, Chiba Prefecture), ainz & tulpe BEAUTY FACTORYYOKOHAMA HAMMERHEAD (Yokohama, Kanagawa Prefecture), ainz & tulpe GINZA INZ (Chuo Ward, Tokyo) ,ainz & tulpe LINKS UMEDA (Osaka, Osaka), ainz & tulpe HAKATA MARUI (Fukuoka, Fukuoka Prefecture), ainz
& tulpe Daimaru Shimonoseki (Shimonoseki, Yamaguchi Prefecutre), ainz & tulpe SENDAI PARCO 2 (Sendai,
Miyagi Prefecture) and closed six stores, resulting in a total of 63 cosmetic and drug stores at the end of the
fiscal year.
(Other businesses)
Net sales from other businesses decreased 22.6% year on year to ¥4,163 million and segment loss was ¥342
million compared with the loss of ¥165 million a year earlier.

(2) Overview of financial position for the current fiscal year
The balance of total assets at the end of the fiscal year increased by ¥4,429 million from the end of theprevious fiscal year to ¥193,451 million. That mainly reflected increases for merchandise and for deposits andguarantees, which outweighed declines for cash on hand and in banks and for goodwill.
The balance of liabilities at the end of the fiscal year under review decreased by ¥2,652 million to ¥82,447
million.
The balance of short- term and long-term debts decreased by ¥5,482 million to ¥6,074 million.
Total net assets increased by ¥7,081 million to ¥111,003 million and the shareholders’ equity ratio increased
2.4 percentage points to 57.3%.

(3) Overview of cash flows for the current fiscal year
In the fiscal year under review, cash on hand and in banks (“cash”) decreased ¥1,564 million year on year to¥45,931 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 ¥17,747 million, compared with net cash provided of ¥14,788
million in the previous fiscal year.
The main items that were positive for cash flow were income before income taxes of ¥15,930 million, as well
as depreciation and amortization of ¥4,087 million and amortization of goodwill of ¥4,357 million related tobusiness expansion through new store openings and M&A.
The main item negative for cash flow was income taxes paid of ¥6,174 million.
(Cash flows from investing activities)
Net cash used in investing activities was ¥11,474 million, compared with net cash used of ¥19,985 million in
the previous fiscal year.

-3-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020

This mainly reflected payments of ¥1,442 million for purchases of shares in subsidiaries due to changes inthe scope of consolidation related to shares acquired in 4 companies through M&A deals, ¥4,913 million forpurchases of property, plant and equipment related to the opening of new cosmetic and drug stores anddispensing pharmacies, and ¥4,710 million for payments of leasehold and guarantee deposits.
(Cash flows from financing activities)
Net cash used in financing activities was ¥7,837 million, compared with net cash provided of ¥10,681 million
in the previous fiscal year.
The main cash outflows were net repayment of ¥5,513 million from short-term and long-term debt repayment
and proceeds, and ¥1,948 million for cash dividends paid.
Changes in the Group’s cash flow indicators are shown below.
Year ended April
30, 2017

Year ended April
30, 2018

Year ended April
30, 2019

Year ended April
30, 2020

Shareholders’ equity ratio (%)

38.4

52.7

54.9

57.3

Equity ratio based on market value (%)

156.6

141.0

165.7

110.4

Debt redemption term (years)

1.5

0.9

0.8

0.4

Interest coverage ratio (times)

128.0

184.5

117.8

276.8

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) Future outlook
In the fiscal year ending April 30, 2021, the dispensing pharmacy business will continue to develop new
dispensing pharmacies and actively seek M&A opportunities. In addition, the cosmetic and drug store businesswill work to expand its operations by continuing to open ainz & tulpe cosmetic and drug stores in the major urban
area and by implementing measures to raise brand visibility in urban markets.
In terms of the impact of the COVID-19 outbreak, in the dispensing pharmacy business, the Group forecasts
a decline in the number of prescriptions due to an increase in longer-term prescriptions, while in the cosmetic
and drug store business, the Group expects weak consumer sentiment to persist until July amid calls for people
to stay at home. In addition, inbound tourist demand is unlikely to recover in the current fiscal year.
Based on that outlook, the Group forecasts net sales for the fiscal year ending April 30, 2021 of ¥311,000
million, up 6.3% year on year, ordinary income of ¥15,000 million, down 10.8%, and profit attributable to ownersof parent of ¥8,200 million, a decrease of 10.7%.
At this stage, there are no clear signs of when the COVID-19 outbreak will be contained. If conditions change
dramatically due to a second wave of the outbreak or other developments, the Group will revise its forecasts as
required and disclose them in a timely manner.
(5) Risk information related to the COVID-19 outbreak
Amid the widening COVID-19 outbreak, the duration of prescriptions in the dispensing pharmacy businesshas lengthened due to factors such as limits on medical consultations to prevent the spread of infection. As aresult, the business is likely to see an increase in the average unit price per prescription but a decline in thenumber of prescriptions.
The cosmetic & drug store business has already been affected by a drop in customer footfall due to factors
such as calls for people to stay at home, temporary store closures and shorter opening hours, and a contraction-4-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020

in inbound tourist demand. We anticipate an impact on the Group’s operating results if the current situation
persists or escalates.

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.

-5-

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020

3. Consolidated Financial Statements(1) Consolidated balance sheet

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
Accumulated depreciation
Buildings and structures, net
LandConstruction in progress
Other property, plant and equipment
Accumulated depreciation
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
Long-term loans
Deferred tax assets
Net defined benefit asset
Deposits and guarantees
Other investments and other assets
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Deferred assets
Share issuance cost
Total deferred assets
Total assets-6-(Million yen)Previous fiscal year
(As of April 30, 2019)

Current fiscal year
(As of April 30, 2020)

48,091
12,771
12,673
225
236
8,438
3,012
(2)
85,44646,321
13,653
15,035
286
208
8,997
3,299
(1)
87,802

31,676(15,323)
16,352
10,394283
11,911(8,755)
3,155
30,18632,388(15,779)
16,60910,960143
10,260(7,098)3,161
30,87445,2492,327
47,57742,123
2,792
44,916

1,795
1,351
4,284
15
15,133
4,853(1,683)25,751
103,515

2,295
554
4,211
111
19,144
5,168(1,644)29,841
105,632

59
59
189,02115
15
193,451

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended 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
Lease obligations
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 income
Unrealized holding gains on securities
Remeasurement of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets-7-(Million yen)Previous fiscal year
(As of April 30, 2019)

Current fiscal year
(As of April 30, 2020)

44,794
5,571
3,261
12,737
2,139
17
450
4,772
73,74447,187
3,642
3,356
13,094
2,338
16
463
4,600
74,700

5,985
401
2,977
1,989
11,35585,099

2,432
154
3,124
2,035
7,747
82,447

21,89420,50061,526(2)
103,920

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

(6)
(59)
(65)
67
103,922
189,021

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

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020

(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 of allowance for doubtful accounts
Provision for bonuses to emplyees
Provision for bonuses to directors
Retirement benefit expenses
Provision for reward obligations
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 income
Non-operating income
Interest income
Dividend income
Gains 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 non-operating income
Total non-operating income
Non-operating expenses
Interest expenses
Losses on sales of accounts receivables
Real estate rental expenses
Provision of allowance for doubtful accounts
Other non-operating expenses
Total non-operating expenses
Ordinary income-8-

Previous fiscal year
(May 1, 2018
to April 30, 2019)
275,596
230,233
45,363Current fiscal year
(May 1, 2019
to April 30, 2020)
292,615
245,753
46,861

2,330
1,044
5,212
1
584
17
195
449
1,946
845
78
4,473
702
4,106
1,400
5,904
29,295
16,067

2,004
1,260
5,560
–
668
16
203
463
2,046
879
81
4,950
766
4,242
1,762
5,885
30,793
16,068

70
39
17
38
274
48
158
68
–
345
1,061

55
37
10
25
368
48
184
64
138
292
1,226

125
71
95
24
173
490
16,637

63
67
134
–
205
472
16,822

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020
(Million yen)Previous fiscal year
(May 1, 2018
to April 30, 2019)
Extraordinary income
Gains on sales of fixed assets
Gains on sales of investments in securities
Gain on transfer of business
Surrender value of insurance
Gain on the sale of investments
Gain on contribution of securities to retirement benefit
trust
Other extraordinary income
Total extraordinary income
Extraordinary losses
Losses on disposal and sales of fixed assets
Impairment losses on fixed assets
Loss on valuation of investment securities
Loss on temporary store closures
Other extraordinary losses
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-

Current fiscal year
(May 1, 2019
to April 30, 2020)

38
7
312
23
550

36
–
496
78
–

–

223

128
1,061

1
835

695
766
179
–
433
2,074
15,624
6,794
(230)
6,564
9,060
30
9,029

916
263
218
97
231
1,727
15,930
6,648
81
6,729
9,201
21
9,179

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020

Consolidated statement of comprehensive income

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

Previous fiscal year
(May 1, 2018
to April 30, 2019)
9,060(Million yen)
Current fiscal year
(May 1, 2019
to April 30, 2020)
9,201

(91)
(8)
(99)
8,960
8,929

(71)
(99)
(170)
9,030
9,008

30

21

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020

(3) Consolidated statement of changes in net assets
Previous fiscal year (May 1, 2018 to April 30, 2019)(Million yen)
Shareholders’ equity
Common stock
Balance at the beginning ofcurrent year

Capital surplus

21,894Retained earnings

20,500Total shareholders’equityTreasury stock

54,268(1)

96,662

Net changes during the year
Cash dividends paid

(1,771)(1,771)

Profit attributable toowners of parent

9,029

9,029

Acquisition of treasury
stock

(0)

(0)

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

–

–

7,257

(0)

7,257

21,89420,50061,526(2)

103,920

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

Remeasurements ofdefined benefit plans

84

(50)

Total accumulated othercomprehensive income(loss)

Non-controllinginterests

34

36

Total net
assets96,733

Net changes during the year
Cash dividends paid

(1,771)

Profit attributable toowners of parent

9,029

Acquisition of treasury
stock

(0)

Net change in items otherthan shareholders’ equity

(91)

(8)

(99)

30

(68)

Total changes during the
year

(91)

(8)

(99)

30

7,188

Balance at the end ofcurrent year

(6)

(59)

(65)

67

103,922- 11 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020

Current fiscal year (May 1, 2019 to April 30, 2020)(Million yen)
Shareholders’ equity
Common stock
Balance at the beginning ofcurrent year

Capital surplus

21,894Retained earnings

20,500Total shareholders’equityTreasury stock

61,526(2)

103,920

Net changes during the year
Cash dividends paid

(1,948)(1,948)

Profit attributable toowners of parent

9,179

9,179

Acquisition of treasury
stock

–

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

–

–

7,231

–

7,231

21,89420,50068,758(2)

111,151

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

Remeasurements ofdefined benefit plans

(6)

(59)

Total accumulated othercomprehensive income(loss)

Non-controllinginterests

(65)

67

Total net
assets103,922Net changes during the year
Cash dividends paid

(1,948)

Profit attributable toowners of parent

9,179

Acquisition of treasurystock
Net change in items otherthan shareholders’ equity

–
(71)

(99)

(170)

21

(149)

Total changes during the
year

(71)

(99)

(170)

21

7,081

Balance at the end ofcurrent year

(77)

(159)

(236)

88

111,003- 12 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020

(4) Consolidated statement of cash flows

Cash flows from operating activities
Profit before income taxes
Depreciation and amortization
Amortization of goodwill
Loss on sales of shares of subsidiaries and associates
Impairment losses on fixed assets
Gain on the sale of investments
Increase (decrease) in allowance for doubtful accounts
Increase in reserve for reward obligations
Increase in defined benefit liability
Gain on transfer of business
Gain on contribution of securities to retirement benefit
trust
Decrease in provision for sales returns
Increase in allowance for bonuses to employees
Increase in allowance for bonuses to directors
Interest and dividend income
Interest expenses
Gains on investments in partnerships
Gains on donations of property, plant and equipment
Gains on sales of investments in securities
Loss (gain) on valuation of investment securities
Losses on disposal and sales of fixed assets(Increase) decrease in accounts receivable(Increase) decrease in inventories(Increase) decrease in other assets
Increase in other accounts receivable
Increase 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 -(Million yen)Previous fiscal year
(May 1, 2018
to April 30, 2019)

Current fiscal year
(May 1, 2019
to April 30, 2020)

15,624
3,903
4,183
149
766
(550)
(155)
29
186
(312)

15,930
4,087
4,357
34
263
–
(2)
13
256
(419)

–

(223)

(6)
152
1
(109)
125
(17)
(48)
0
179
656
843
(2,054)
335
(407)
1,685
(942)
(72)
24,146109(125)(9,341)
14,788

–
183
(1)
(92)
63
(10)
(48)
–
218
880
(429)
(1,939)(1,237)
(530)
1,793
745
–
23,89392(64)(6,174)
17,747

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020

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 investments in capital
Proceeds from returns of investments in capital
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
Repayments of lease obligations
Payments for purchase of treasury stock
Cash dividends paid
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 of consolidated subsidiaries
Cash and cash equivalents at end of the year

- 14 -

Previous fiscal year
(May 1, 2018
to April 30, 2019)(Million yen)

Current fiscal year
(May 1, 2019
to April 30, 2020)(3,761)(4,913)

783
(28)
21

1,014
(874)
39

(13,246)(1,442)

(118)
626
(1)
850
(1,228)15(4,469)

(189)
939
(0)
1
(1,465)188(4,710)

808

662

(820)
616
(47)
13
(19,985)

(924)
314
(109)
(4)
(11,474)(1,599)0(6,771)(539)(0)(1,771)(10,681)(15,878)
63,233(15)
100(5,598)(375)–(1,948)(7,837)(1,564)47,495140–

47,49545,931AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020

(5) Notes to consolidated statements(Notes on the premise of a going concern)
There are no applicable matters to be reported.
(Changes in presentation of financial statements)(Consolidated statement of income)Due to an increase in financial materiality, “Loss on valuation of investment securities,” which was included
under “Other extraordinary losses” in the previous fiscal year, has been presented as a separate item from thefiscal year under review.
The consolidated financial statements for the previous fiscal year have been restated to reflect this change.
As a result, in the consolidated statement of income, “Other extraordinary losses” of ¥613 million in theprevious fiscal year has been restated and shown separately as “Loss on valuation of investment securities”
of ¥179 million and “Other extraordinary losses” of ¥433 million.
(Additional information)(Accounting estimates related to the impact of the COVID-19 outbreak)Accounting estimates for items such as impairment losses on fixed assets and the recoverability of deferred
tax assets are based on information available at the time of preparation of the consolidated financial
statements. Although the impact of the COVID-19 outbreak on the Group’s operations differs between
businesses in terms of the type and severity of the impact, accounting estimates have been formulated basedon the assumption that businesses which have seen an impact, such as a decline in net sales, will continue tobe affected until July, and inbound tourist demand will not recover during the current fiscal year
(Matters related to consolidated statement of income)In response to requests from national and local governments, the Group has temporarily closed or shortened
the opening hours of many cosmetic and drug stores to prevent the spread of COVID-19. Fixed expenses(personnel expenses, depreciation, rent and others) incurred by stores during the closures have been booked
as “Losses on temporary store closures” under “Extraordinary losses.”(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 that consist mainly of real-estate leasing services. The
formulation and examination of business strategy is conducted individually for each business.
Accordingly, the reportable segments of the Group are composed of three units, namely, dispensing pharmacy- 15 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020

business, 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 income level. Intersegment
sales and transfers are based on prevailing market prices.
3. Sales, income (loss), assets, liabilities and other items for each reportable segment
I. Previous fiscal year (May 1, 2018 to April 30, 2019)(Million yen)
Reportable segments
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

Total

Adjustments(Note) 1

Consolidated(Note) 2

Sales
Sales to third parties

245,003

25,2105,382

275,596–

275,596

Intersegment sales

–

–

126

126

(126)

–

Total sales

245,003

25,2105,508

275,722(126)

275,596

Segment income (loss)

18,331972(165)

19,138(2,500)

16,637

Segment assets

170,170

11,255

9,471

190,897(1,875)

189,021

Depreciation
and amortization

2,538

315

305

3,159

218

3,378

Amortization of
goodwill

4,165

–

18

4,183

–

4,183

Impairment losses

431

334

–

766

–

766

Increase of tangible
and intangible assets

3,137

1,709

238

5,085

363

5,449

Other

Notes:

1. Segment income (loss) in “Adjustments” totaling (¥2,500 million) includes ¥4,280 million in overall groupexpenses, (¥1,787 million) in (income) losses that may not be allocated to the reporting segments, and ¥7 million
in elimination due to intersegment transactions.
The overall group expenses consist mainly of expenses associated with the administrative divisions of the parent
company, such as general affairs and accounting divisions.
Segment assets in “Adjustments” totaling (¥1,875 million) consist mainly of assets associated with theadministrative divisions of the parent company and the difference in elimination of intersegment transactions.
2. Segment income (loss) is adjusted with the ordinary income of consolidated statements of income.

- 16 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020
II. Current fiscal year (May 1, 2019 to April 30, 2020)(Million yen)
Reportable segments
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

Total

Adjustments(Note) 1

Consolidated(Note) 2

Sales
Sales to third parties

263,750

24,701

4,163

292,615–

292,615Intersegment sales

–

–

114

114

(114)

–

Total sales

263,750

24,701

4,277

292,729(114)

292,615

Segment income (loss)

20,850262(342)

20,771(3,948)

16,822

Segment assets

173,748

12,771

11,869198,389(4,938)

193,451

Depreciation
and amortization

2,676

391

279

3,347

199

3,547

Amortization of
goodwill

4,336

3

18

4,357

–

4,357

91

172

–

263

–

263

3,688

1,488

311

5,488

337

5,825

Other

Impairment losses
Increase of tangible
and intangible assets
Notes:

1. Segment income (loss) in “Adjustments” totaling (¥3,948 million) includes ¥5,777 million in overall groupexpenses, (¥1,923 million) in (income) losses that may not be allocated to the reporting segments, and ¥94 million
in elimination due to intersegment transactions.
The overall group expenses consist mainly of expenses associated with the administrative divisions of the parent
company, such as general affairs and accounting divisions.
Segment assets in “Adjustments” totaling (¥4,938 million) consist mainly of assets associated with theadministrative divisions and the system logistics division of the parent company and the difference in eliminationof intersegment transactions.
2. Segment income (loss) is adjusted with the ordinary income of consolidated statements of income.

- 17 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020

Related information
Previous fiscal year (May 1, 2018 to April 30, 2019)
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.
Current fiscal year (May 1, 2019 to April 30, 2020)
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
Previous fiscal year (May 1, 2018 to April 30, 2019)
This disclosure has been omitted because the same information is disclosed under Segment Information.
Current fiscal year (May 1, 2019 to April 30, 2020)
This disclosure has been omitted because the same information is disclosed under Segment Information.

- 18 -

AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2020

Information about goodwill amortization amount and year-end balance for each reportable segment
Previous fiscal year (May 1, 2018 to April 30, 2019)(Million yen)
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Amortization of current fiscal year

4,165

–

18

–

4,183

Balance at the end of current fiscal year

45,127–122–

45,249Other
businesses

Corporate /Eliminations

Total

Current fiscal year (May 1, 2019 to April 30, 2020)(Million yen)
Dispensing
pharmacybusiness

Cosmetic anddrug store
business

Otherbusinesses

Corporate /Eliminations

Total

Amortization of current fiscal year

4,336

3

18

–

4,357

Balance at the end of current fiscal year

40,699

60

1,363

–

42,123

Information about gains on bargain purchase for each reported segment
Previous fiscal year (May 1, 2018 to April 30, 2019)
There are no applicable matters to be reported.
Current fiscal year (May 1, 2019 to April 30, 2020)
There are no applicable matters to be reported.
(Per-share information)
Previous fiscal year
(May 1, 2018 to April 30, 2019)

Current fiscal year
(May 1, 2019 to April 30, 2020)

Net assets per share

2,931.48 yen

3,130.77 yen

Earnings per share

254.87 yen

259.11 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.
Previous fiscal year
Current fiscal year
(May 1, 2018 to April 30, 2019)(May 1, 2019 to April 30, 2020)
Profit attributable to owners of parent(million yen)

9,029

9,179

–

–

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

9,029

9,179

Average number of shares outstanding(shares)

35,427,497

35,427,484

Amount not attributable to ordinary
shareholders (million yen)

(Important subsequent events)
There are no applicable matters to be reported.

- 19 -