Ain : Summary of Financial Statements for Fiscal Year Ended April 2021

July 29, 2021

July 30, 2021

July 30, 2021

Yes (Supplementary materials are disclosed on the Company's website appropriately as the financial statements.)

Name of listed company: Exchange listed on: Code number: Representative: Inquiries:

Summary of Financial Statements for Fiscal Year Ended April 2021

【Japan GAAP】(Consolidated)

June 4, 2021

AIN HOLDINGS INC.

First Section of Tokyo Stock Exchange and Sapporo Securities Exchange

9627URL: https://www.ainj.co.jp/Kiichi Otani, President and Representative Director

Toshihide Mizushima, Representative Senior Managing Director TEL: [phone]

Date of the ordinary general meeting of shareholders: Date of scheduled payment of dividends:

Date of filing securities report:

Supplementary documents for this summary of 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 2021 (from May 1, 2020 to April 30, 2021)
(1) Consolidated operating results				(Percentage figures show year-on-year changes.)
		Net sales		Operating income	Ordinary income	Profit attributable to
			owners of parent
		Million yen	%	Million yen	%	Million yen	%	Million yen	%
	Year ended April 30, 2021	297,305	1.6	10,932	(32.0)	12,649	(24.8)	6,697	(27.0)
	Year ended April 30, 2020	292,615	6.2	16,068	-	16,822	1.1	9,179	1.7

	(Note) Comprehensive income:	Year ended April 30, 2021: ¥6,783 million (-24.9%)
				Year ended April 30, 2020: ¥9,030 million (+0.8%)
			Earnings per		Diluted earnings							Ordinary income		Operating
					Return on equity		income to net
			share				per share		to total assets
														sales
					Yen					Yen				%				%			%
	Year ended April 30, 2021		189.04					-				5.9				6.4			3.7
	Year ended April 30, 2020		259.11					-				8.5				8.8			5.5
	(Reference) Share of profit	of entities accounted	for using equity	method: Year ended	April 30, 2021: ¥ 10	million, Year ended
April 30, 2020: ¥ - million
(2) Consolidated financial position
			Total assets			Net assets		Shareholders' equity	Net assets per share
								ratio
					Million yen			Million yen						%					Yen
	As of April 30, 2021		203,662			115,837				56.8				3,267.49
	As of April 30, 2020		193,451			111,003				57.3				3,130.77
	(Reference) Equity capital:	As of April 30, 2021: ¥115,758 million		As of April 30, 2020: ¥110,915 million
(3) Consolidated cash flows
			Cash flows from			Cash flows from		Cash flows from			Cash and cash
									equivalents
			operating activities	investing activities		financing activities
							at end of year
					Million yen			Million yen				Million yen					Million yen
	Year ended April 30, 2021		14,928			(9,493)				3,643				55,009
	Year ended April 30, 2020		17,747			(11,474)				(7,837)				45,931
2. Dividends
					Dividends per share							Total		Dividends		Dividends on
			1Q-end		2Q-end			3Q-end	Year-end		Annual		dividends		payout ratio		net assets
								(annual)		(consolidated)		(consolidated)
			Yen		Yen		Yen			Yen			Yen		Million yen				%	%
	Year ended April 30, 2020		-		0.00		-		55.00		55.00		1,948				21.2	1.8
	Year ended April 30, 2021		-		0.00		-		55.00		55.00		1,948				29.1	1.7
	Year ending April 30, 2022		-		0.00		-		55.00		55.00						23.5
	(forecast)

3. Consolidated financial forecast for the fiscal year ending April 30, 2022 (from May 1, 2021 to April 30, 2022)

(Percentage figures show year-on-year changes.)

	Net sales		Operating income	Ordinary income	Net income		Earnings
			per share
	Million yen		%	Million yen	%	Million yen	%	Million yen		%	Yen
First half	147,900		1.8	5,300	35.0	5,600	24.0	2,780		5.7	78.47
Full year	315,000		6.0	15,000	37.2	15,500	22.5	8,300		23.9	234.28

* Notes

(1) Major changes in subsidiaries during the fiscal year (changes in specified subsidiaries resulting in changes in scope of consolidation): No

Newly consolidated: -

Excluded: -

1. Changes in accounting principles, changes in accounting estimates, and restatement of revisions
2. 1. Changes in accounting principles as a result of revisions to accounting standards, etc.: No

2)	Changes in accounting principles other than 1):	No
3)	Changes in accounting estimates:	No
4)	Restatement of revisions:	No

(3) Number of outstanding shares (common stock):

1)	Number of outstanding
	shares (including treasury	As of April 30, 2021	35,428,212	shares As of April 30, 2020	35,428,212	shares
	stock):
2)	Number of shares held in	As of April 30, 2021	891	shares As of April 30, 2020	728	shares
	treasury:
3)	Average number of	Fiscal year ended	35,427,408	Fiscal year ended	35,427,484
	shares outstanding:	April 30, 2021	shares April 30, 2020	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, 2021

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..................................................................................................................................................................	5
(5)	Risk information related to the COVID-19 outbreak.........................................................................................................	5
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
	(Matters related to consolidated statements of income) ...............................................................................................	15
	(Segment information, etc) .............................................................................................................................................	15
	(Per-share information)...................................................................................................................................................	19
	(Important subsequent events) .......................................................................................................................................	19

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AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

1. Operating Results and Other

(1) Overview of operating results for the current fiscal year

During the fiscal year ended April 30, 2021, conditions in the Japanese economy remained challenging due to the impact of the COVID-19 pandemic. There was also continued uncertainty in the economic outlook.

In this economic environment, the AIN HOLDINGS Group (the Group) worked to expand its business and increase earnings. Specifically, the Group opened new dispensing pharmacies, used M&A to grow its operations and developed its cosmetic and drug store business.

In pharmacy and store operations, the Group rigorously enforced measures to prevent infection to reassure patients and customers, and worked to ensure the continued provision of healthcare and retail services by implementing strict measures to protect employees from infection.

In addition, in October 2020, the Group established a Sustainability Committee, and in December 2020 identified key sustainability issues that need to be tackled by the Group (materiality) in order to achieve the sustainable development goals (SDGs). Through businesses that support human health and beauty, the Group will work to achieve sustainability management with the aim of generating sustainable growth and creating social, environmental and economic value.

For the fiscal year under review, net sales rose 1.6% year on year to ¥297,305 million, operating income decreased 32.0% to ¥10,932 million, ordinary income decreased 24.8% to ¥12,649 million and profit attributable to owners of parent decreased 27.0% year on year to ¥6,697 million.

(Dispensing pharmacy business)

In 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 were given approval to provide online pharmaceutical treatment guidance nationwide in accordance with certain rules. In line with this change, the Group established a system to provide online pharmaceutical treatment guidance via all its dispensing pharmacies nationwide. In addition, we actively conducted various field trials to prepare for an expected increase in the ways that patients receive medicines. The trials included using drones and automated shipping robots to deliver medicines, same- day delivery schemes, and home delivery storage lockers.

To ensure our pharmacists and dispensing pharmacies fulfill their primary care role, the Group continues to reinforce pharmaceutical management and guidance 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 other means. The Group is also working to help patients access medical services in their local community with peace of mind by providing online pharmaceutical treatment guidance and home-based dispensing and by training specialist dispensing pharmacists.

In business development, the Group is pushing ahead with further business expansion and measures to improve the efficiency of pharmacy operations, including actively opening large pharmacies and tightening the criteria for M&A deals, as well 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.

As a result, for the fiscal year under review, the dispensing pharmacy business reported sales of ¥263,095 million, down 0.2% year on year, and segment income of ¥20,947 million, up 0.5%.

During the fiscal year, the Group opened a total of 29 dispensing pharmacies, including those acquired through M&A deals, and closed 18 dispensing pharmacies and sold 34 as part of an overhaul of pharmacy operations, resulting in a total of 1,065.

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AIN HOLDINGS INC. (9627) Summary of Financial Statements for Fiscal Year Ended April 30, 2021

(Cosmetic and drug store business)

The cosmetic and drug store business continued to face a challenging market environment due to the impact of the COVID-19 pandemic and other factors.

The Group continued to open ainz & tulpe cosmetic and drug stores, as well as strategically develop retail displays tailored to the characteristics of each store. Following the release of the official ainz & tulpe app, the Group launched the official AINZ & TULPE WEBSTORE in May 2020 to improve convenience and lift service levels for customers.

However, many stores reduced their opening hours or closed temporarily to prevent the spread of COVID-19 infections. As a result, the cosmetic and drug store business reported a decline in sales of 21.4% year on year to ¥19,419 million and a segment loss of ¥1,999 million, compared with segment income of ¥262 million in the previous fiscal year.

During the same period, the Group opened 11 ainz & tulpe stores and closed five stores, resulting in a total of 69 cosmetic and drug stores at the end of the fiscal year.

(Other businesses)

Net sales from other businesses increased 248.2% year on year to ¥14,894 million, mainly reflecting the acquisition of retail shop business in March 2020, and segment loss was ¥721 million compared with the loss of ¥342 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 ¥10,211 million from the end of the previous fiscal year to ¥203,662 million. That mainly reflected declines for goodwill and merchandise, outweighed by increases for cash on hand and in banks and for deposits and guarantees.

The balance of liabilities at the end of the fiscal year under review increased by ¥5,378 million to ¥87,825 million.

The balance of short- term and long-term debts increased by ¥5,892 million to ¥11,967 million.

Total net assets increased by ¥4,833 million to ¥115,837 million and the shareholders' equity ratio decreased

0.5 percentage points to 56.8%.

1. Overview of cash flows for the current fiscal year
   In the fiscal year under review, cash on hand and in banks ("cash") increased ¥9,078 million year on year to

¥55,009 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 ¥14,928 million, compared with net cash provided of ¥17,747 million in the previous fiscal year.

The main items that were positive for cash flow were income before income taxes of ¥11,767 million, as well as depreciation and amortization of ¥4,243 million and amortization of goodwill of ¥4,436 million related to business expansion through new store openings and M&A.

The main item negative for cash flow was income taxes paid of ¥6,595 million.

(Cash flows from investing activities)

Net cash used in investing activities was ¥9,493 million, compared with net cash used of ¥11,474 million in

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