FY4/24 2Q
IR PRESENTATION

December 2023

Results Overview© 2023 AIN HOLDINGS INC. All Rights Reserved.

1

Consolidated P/L
Net sales increased 13.2% YoY and 5.6% against the plan due to favorable performance in bothdispensing pharmacy business and cosmetic and drag store business. Ordinary profit increased 28.2%
YoY and 45.4% against the plan due to increase of sales.
FY4/23 2Q
results

FY4/24 2Q
plan

FY4/24 2Q
results

Net sales

171,204

183,459

Gross profit

24,989% of net sales（¥ million）

SG&A expenses

YoYchange(%)

Vs
plan (%)

193,727 +22,523

+13.2

+5.6

25,546

27,767+2,778

+11.1

+8.7

14.6

13.9

14.3

18,202

19,45919,017

+815

+4.5

(2.3)

10.6

10.6

9.8

6,786

6,087

8,749

+1,963

+28.9

+43.7

4.0

3.3

4.5

7,285

6,421

9,338

+2,053

+28.2

+45.4

4.3

3.5

4.8

3,805

3,185

5,257

+1,452

+38.2

+65.1

2.2

1.7

2.7

108.32

90.66

149.66+41.34

+38.2

+65.1

% of net sales

Operating profit% of net sales

Ordinary profit% of net sales
Profit attributable toowners of parent% of net sales
Earnings per share(¥)

YoYchangeFigures in the table are rounded down
FY4/23 2Q: Reflect finalized figures of provisional accounting treatment related to business combination© 2023 AIN HOLDINGS INC. All Rights Reserved.

2

Dispensing Pharmacy Business (Consolidated)
Net sales increased 13.0% YoY and 5.4% against the plan due to rise in prescription numbers andaverage price because of improvements in the capabilities of primary care functions in addition to
the easing of restrictions on outpatient visits and an early seasonal rise in influenza infections.
Segment profit increased 16.0% YoY and 20.1% against the plan due to increase of sales.
FY4/23 2Q
results

FY4/24 2Q
plan

FY4/24 2Q
results

Net sales

153,248

164,380

Gross profit

18,338% of net sales（¥ million）

YoY
change(%)

Vs
plan (%)

173,234 +19,986

+13.0

+5.4

18,40020,144+1,806

+9.8

+9.5

12.0

11.2

11.6

8,001

8,340

8,204

+203

+2.5

(1.6)

5.2

5.1

4.7

10,336

10,06011,939+1,603

+15.5

+18.7

6.7

6.1

6.9

10,771

10,40012,492+1,721

+16.0

+20.1

7.0

6.3

7.2

1,209

1,224

1,217

+8

+0.7

(0.6)

SG&A expenses% of net sales

Operating profit% of net sales

Segment profit% of net sales

Number ofpharmacies

YoYchangeFigures in the table are rounded down
FY4/23 2Q: Reflect finalized figures of provisional accounting treatment related to business combination© 2023 AIN HOLDINGS INC. All Rights Reserved.

3

Cosmetic and Drug Store Business (Consolidated)
Net sales up 21.5% YoY and 10.4% against the plan due to recovery in mobility and a change incustomer buying habits to cosmetics. Segment profit increased 277.7% YoY and 139.6% against theplan due to increase of sales.

（¥ million）

Net sales
Gross profit% of net sales

SG&A expenses% of net sales

FY4/23 2Q
results

FY4/24 2Q
plan

FY4/24 2Q
results

12,205
4,562

13,438
5,101

4,244

Operating profit% of net sales

Segment profit% of net sales

Number ofstoresYoYchangeYoYchange(%)

Vs
plan (%)

14,832
5,674+2,627

+21.5

+10.4

+1,112

+24.4

+11.2

4,551

4,363

+119

+2.8

(4.1)

317

550

1,311

+994 +313.6 +138.4

2.6

4.1

8.8

349

550

1,318

2.9

4.1

8.9

78

80

78

37.4
34.8

38.0
33.9

38.3
29.4

+969 +277.7 +139.6
-

0.0

(2.5)

Figures in the table are rounded down

© 2023 AIN HOLDINGS INC. All Rights Reserved.

4

Consolidated B/S
Net cash became ¥43,578 million and shareholdersʼ equity ratio became 53.4%. We are
maintaining a sound financial structure.
End-FY4/23
AssetsCurrent assets
Cash and deposits

Non-current
assetsGoodwill

Liabilities and Net Assets

98,305

46,796

133,444

46,443

Deferred
assetsTotal assets

Current
liabilities

92,986

Non-current
liabilities

12,218

Short-termborrowings

Long-term
borrowings

3,670

5,021

- Total net assets 126,546
Total liabilities

231,750 and net assets 231,750

Net cash
Shareholdersʼ equity
ratio(%)

End-FY4/24 2Q(¥ million)

37,804
54.6

AssetsLiabilities and Net Assets

Current assets 108,214
Cash and deposits

Non-current
assetsGoodwill

50,518

134,708

44,634

Deferred
assetsTotal assets(¥ million)

Current
liabilities

102,718

Non-current
liabilities

10,359

Short-termborrowings

Long-term
borrowings

3,643

2,996

- Total net assets 129,844
Total liabilities

242,922 and net assets 242,922

Net cash
Shareholdersʼ equity
ratio(%)

43,57853.4

Figures in the table are rounded down
Net cash = Cash and deposits – Interest-bearing debt
© 2023 AIN HOLDINGS INC. All Rights Reserved.

5

Assets
The balance of total assets increased ¥11,172 million from the end of the previous fiscal year
because of increase in merchandise due to a rise in inventories of COVID-19 treatments, andan increase in buildings and structures due to the new store openings.
(¥ million)
Cash and deposits
Accounts receivable - trade
Inventories
Total current assets
Buildings and structures, net
Land
Total property, plant and equipment
Goodwill
Total intangible assets
Investments securities
Deferred tax assets
Leasehold and guarantee deposits
Total investments and other assets
Total non-current assets
Total deferred assets
Total assets

End-FY4/23 2Q

End-FY4/23

End-FY4/24 2Q

Change46,723
12,147
21,44098,28819,983
10,58536,90348,49153,8202,811
6,124
23,07042,287

46,796
13,24921,58698,305
21,407
10,60239,45946,44352,343
2,720
5,990
24,50741,64150,51813,64324,855108,214
23,624
10,31340,677
44,63450,9762,900
6,046
25,21343,054+3,722+394+3,269+9,909+2,217(289)+1,218(1,809)(1,367)
+180
+56
+706
+1,413133,011

133,444

134,708+1,264----

231,299

231,750

242,922+11,172

Figures in the table are rounded down

Change:End-FY4/24 2Q compared with End-FY4/23
Capital expenditures (Property, plant and equipment and intangible assets + Leasehold and guarantee deposits) totaled ¥6,196 million
End-FY4/23 2Q: Reflect finalized figures of provisional accounting treatment related to business combination© 2023 AIN HOLDINGS INC. All Rights Reserved.

6

Liabilities and Net Assets
Accounts payable increased ¥ 7,858 million due to increase in pharmaceutical inventories andnew store openings. Short-term and long-term borrowings decreased ¥ 2,052 million due torepayment of loans payable.
End-FY4/23 2Q

End-FY4/23

End-FY4/24 2Q

Short-term borrowings

60,7193,776

58,6983,670

66,556
3,643+7,858(27)

Total current liabilities

93,30992,986

102,718+9,732Long-term borrowings

10,038

5,021

2,996

(2,025)

Total non-current liabilities

17,12012,21810,359(1,859)Total liabilities

110,429

105,204

113,078+7,874

Share capital

Total shareholdersʼ equity

21,89420,50480,534
120,933

21,89420,50485,963
126,362

21,894
20,49989,113
129,524(5)+3,150+3,162

Total net assets

120,869

126,546

129,844+3,298231,299

231,750

242,922+11,172(¥ million)
Accounts payable - trade

Capital surplus
Retained earnings

Total liabilities and net
assetsFigures in the table are rounded down

ChangeChange:End-FY4/24 2Q compared with End-FY4/23

End-FY4/23 2Q: Reflect finalized figures of provisional accounting treatment related to business combination© 2023 AIN HOLDINGS INC. All Rights Reserved.

7

Consolidated C/F
Net cash provided by operating activities was ¥14,094 million due to increase in profits in bothbusinesses. Because of that, cash and cash equivalents at end of the period increased ¥6,766
million from the previous year. The company maintained ample cash.
(¥ million)

FY4/23 2Q

FY4/24 2Q

Change8,456

14,094＋5,638

Profit before income taxes

7,167

9,427

＋2,260Depreciation

2,567

2,929

＋362

Amortization of goodwill

2,117

2,177

＋60

Decrease (increase) in trade receivables

1,694

(286)

(1,980)Decrease (increase) in inventories(4,890)(3,232)＋1,658Decrease (increase) in accounts receivable - other(1,659)(3,557)(1,898)

5,255

7,759

＋2,504(18,617)(5,793)＋12,824(5,680)(5,320)＋360(14,602)(295)＋14,307

Net cash provided by financing activities(5,793)(4,237)＋1,556

Net increase (decrease) in cash and cash equivalents(15,955)

4,063＋20,018

Cash and cash equivalents at end of the period

43,51450,280＋6,766

Net cash provided by operating activities

Increase (decrease) in trade payables
Net cash provided by investing activities
Purchase of property, plant and equipment andintangible assets
Purchase of shares of subsidiaries resulting inchange in scope of consolidation

Figures in the table are rounded down
End-FY4/23 2Q: Reflect finalized figures of provisional accounting treatment related to business combination© 2023 AIN HOLDINGS INC. All Rights Reserved.

8

Business Value Analysis
Shareholdersʼ equity ratio (%)
Market value equity ratio (%)
PER (times)
EPS (¥)PBR (times)
BPS (¥)ROA (%)ROE (%)EBITDA (¥ million)
EV/EBITDA (times)
Net D/E ratio (times)
Net cash (¥ million)
Shareholdersʼ value (¥ million)
Market capitalization (¥ million)

FY4/23 2Q

52.2
94.9
28.85
108.32
1.83
3,438.40
1.7
3.2
11,471
16.60(0.27)
32,608
222,986
219,562

FY4/23

54.6
85.5
21.46
262.87
1.58
3,599.47
4.2
7.5
25,8436.34(0.30)
37,804
201,720
198,133

FY4/24 2Q

53.4
61.3
14.17
149.66
1.16
3,693.46
2.2
4.1
13,8557.89(0.34)
43,578
152,906
149,032

Change＋1.2(33.6)(14.68)＋41.34(0.67)＋255.06＋0.5＋0.9＋2,384(8.71)(0.07)＋10,970(70,080)(70,530)

Figures in the table are rounded down
Change︓FY4/24 2Q compared with FY4/23 2Q
Net D/E ratio = Net interest-bearing debt (Interest-bearing debt – Cash and deposits) / Shareholdersʼ equity
Net cash = Cash and deposits– Interest-bearing debt
Shareholdersʼ value = EV – Net interest-bearing debt
Market capitalization︓Treasury shares is excepted
Share prices used to calculate market capitalization:
End-FY4/23 2Q ¥6,250 (End-Oct, 2022), End-FY4/23 ¥5,640 (End-Apr, 2023), End-FY4/24 2Q ¥4,242 (End-Oct, 2023).
End-FY4/23 2Q: Reflect finalized figures of provisional accounting treatment related to business combination© 2023 AIN HOLDINGS INC. All Rights Reserved.

9

FY4/24 Revised Plan (Consolidated)
The group forecasts net sales for the fiscal year ending April 30, 2024 increase 8.8% YoY andordinary profit increase 13.3% YoY due to new store openings of 41 stores for dispensing
pharmacy business and 6 stores for cosmetic and drug store business.
FY4/22
results

Net sales

316,247

358,742

390,263

31,521＋8.8

Gross profit

49,971

53,698

58,106

4,408

＋8.2

34,832

37,69439,656

1,962

＋5.2

15,13916,004

18,450

2,446

＋15.3

16,041

17,064

19,340

2,276

＋13.3

7,092

9,234

10,000766＋8.3% of net sales

2.2

2.6

2.6

Earnings per
share(¥)

201.47262.87284.64

21.77

＋8.3

55.00

60.00

60.00

-

0.0

% of net sales

SG&A expenses% of net sales

Operating profit% of net sales

Ordinary profit% of net sales

Profit attributable toowners of parent

Annual dividend (¥)

15.8
11.0
4.8
5.1

Figures in the table are rounded down
© 2023 AIN HOLDINGS INC. All Rights Reserved.

FY4/23
results

FY4/24
revised plan

YoY
Change（¥ million）

15.0
10.5
4.5
4.8

YoY
change (%)

14.9
10.2
4.7
5.0

10

Review© 2023 AIN HOLDINGS INC. All Rights Reserved.

11

Review (YoY)
Ordinary profit increased ¥2.1 billion due to increase of net sales in dispensing pharmacy
business and cosmetic and drug store business.
Net sales

Ordinary profit¥171.2 billion → ¥193.7 billion +¥22.5 billion+13.2%

Dispensing
Pharmacy

Dispensing
Pharmacy¥173.2 billion¥153.2 billion

Cosmetic and Drug Store Cosmetic and Drug Store

¥12.2 billion¥14.8 billion

Others ¥5.8 billion

Others ¥5.7 billion

FY4/23

FY4/24■Dispensing
Pharmacy+¥20.0 billion■Cosmetic andDrug store+¥2.6 billion■Retail shop,
Others¥(0.1) billion■Dispensing
Pharmacy

Dispensing
Pharmacy

Increase ofgross profit, etc.

Dispensing
Pharmacy＋￥1.7billion¥12.4 billion■Cosmetic andDrug store¥10.7 billion
Cosmetic and Drug Store¥0.3 billion

Cosmetic and Drug Store¥1.3billion

Others ¥0.0 billion

Others ¥0.0 billion

Administrative
expense, etc.
¥(3.8) billion

Administrative
expense, etc.
¥(4.4) billion

FY4/23

Increase ofgross profit, etc.

+¥1.0 billion■Administrative
expense, etc.
¥(0.6) billion

FY4/24

Decrease against profit︓（© 2023 AIN HOLDINGS INC. All Rights Reserved.

+¥2.1 billion+28.2%¥7.2 billion → ¥9.3 billion）
12

Review (Plan)
Ordinary profit increased ¥2.9 billion due to increase of net sales in dispensing pharmacy
business and cosmetic and drug store business.
Net sales

Ordinary profit¥183.4 billion → ¥193.7 billion +¥10.3 billion+5.6%

Dispensing
Pharmacy¥164.3 billion

Dispensing
Pharmacy¥173.2 billion

Cosmetic and Drug Store Cosmetic and Drug Store
¥13.4.billion¥14.8 billion
Others ¥5.7 billion
Others ¥5.7 billion

FY4/24plan

FY4/24■Dispensing
Pharmacy+¥8.9 billion■Cosmetic andDrug store+¥1.4 billion¥6.4 billion → ¥9.3 billion ＋¥2.9 billion+45.4%

Dispensing
Pharmacy¥10.4 billion

Dispensing
Pharmacy■Dispensing
Pharmacy

Increase ofgross profit, etc.

¥2.0 billion¥12.4 billion ■Cosmetic andDrug store,
OthersCosmetic and Drug Store¥0.5 billion

Cosmetic and Drug Store¥1.3 billion

Others ¥0.0 billion

Others ¥0.0 billion

Administrative
expense, etc.
¥(4.5) billion

Administrative
expense, etc.
¥(4.4) billion

FY4/24plan

FY4/24

Increase ofgross profit, etc.

+¥0.8 billion

Administrative
expense, etc.
＋¥0.1 billion

Increase against profit: ＋© 2023 AIN HOLDINGS INC. All Rights Reserved.

13

Revised plan

© 2023 AIN HOLDINGS INC. All Rights Reserved.

14

FY4/24 Revised Plan (Dispensing Pharmacy Business)
The group revised the full-year consolidated financial forecasts because net sales of same storesand stores openings in the previous year expected to increase. Net sales were revised to¥349,100 million, increased 8.6% YoY and 3.9% against the initial plan. Segment profit wasrevised to ¥26,390 million, increased 9.3% YoY and 8.7% against the initial plan.
YoY
FY4/23
FY4/24
FY4/24
Vs initial plan
results
initial plan revised plan Change(%) change (%)（¥ million）

Net sales

321,577

336,093

349,100

＋8.6

＋3.9

Gross profit

39,77940,713

42,680＋7.3＋4.8

16,55917,08017,160＋3.6＋0.5

23,22023,63325,520＋9.9＋8.0

24,13524,283

26,390

＋9.3

＋8.7

1,209

1,249

1,240

＋2.6

(0.7)

% of net sales

SG&A expenses% of net sales

Operating profit% of net sales

Segment profit% of net sales

Number ofpharmacies

12.4
5.1
7.2
7.5

12.1
5.1
7.0
7.2

12.2
4.9
7.3
7.6

Figures in the table are rounded down

© 2023 AIN HOLDINGS INC. All Rights Reserved.

15

FY4/24 Revised Plan (Cosmetic and Drug Store Business)
The group revised the full-year consolidated financial forecasts because net sales expected to increase
due to firm amid a recovery in mobility of customer numbers for same stores. Net sales were revisedto ¥29,500 million, increased 14.9% YoY and 8.2% against the initial plan. Segment profit was revisedto ¥2,410 million, increased 98.5% YoY and 75.9% against the initial plan.
（¥ million）

Net sales

25,68527,26329,500

＋14.9

＋8.2

Gross profit

9,694

10,405

11,230

＋15.8

＋7.9

8,521

9,035

8,830

＋3.6

(2.3)

1,172

1,370

2,400 ＋104.8

＋75.2

1,214

1,370

2,410

＋98.5

＋75.9

78

88

82

＋5.1

(6.8)

% of net sales

SG&A expenses% of net sales

Operating profit% of net sales

Segment profit% of net sales

Number ofstores

37.7
33.2
4.6
4.7

FY4/24
initial plan

YoY
FY4/24
Vs initial plan
revised plan Change(%) change (%)

FY4/23
results

38.2
33.1
5.0
5.0

38.1
29.9
8.1
8.2

Figures in the table are rounded down

© 2023 AIN HOLDINGS INC. All Rights Reserved.

16

FY4/24 Revised Plan (Consolidated)
The group revised the full-year consolidated financial forecasts because net sales expected to increase inboth dispensing pharmacy business and cosmetic and drag store business. Net sales revised to ¥390,263
million and increased 8.8% YoY and 4.1% against the initial plan. Ordinary profit revised to ¥19,340
million and increased 13.3% YoY and 18.6% against the initial plan.
YoY
FY4/23
FY4/24
FY4/24
Vs initial plan（¥ million）
results
initial plan
revised plan Change(%) change (%)

Net sales

358,742

375,000

390,263

＋8.8

＋4.1

Gross profit

53,69855,413

58,106＋8.2＋4.9

37,69439,75039,656

＋5.2

(0.2)

16,004

15,66318,450

＋15.3

＋17.8

17,06416,302

19,340

＋13.3

＋18.6

9,234

8,250

10,000

＋8.3

＋21.2

% of net sales

2.6

2.2

2.6

Earnings per
share(¥)

262.87234.84284.64

＋8.3

＋21.2

60.00

60.00

60.00

0.0

0.0

% of net sales

SG&A expenses% of net sales

Operating profit% of net sales

Ordinary profit% of net sales

Profit attributable toowners of parent

Annual dividend (¥)

15.0
10.5
4.5
4.8

Figures in the table are rounded down
© 2023 AIN HOLDINGS INC. All Rights Reserved.

14.8
10.6
4.2
4.3

14.9
10.2
4.7
5.0

17

Strategy© 2023 AIN HOLDINGS INC. All Rights Reserved.

18

Strategy
Expansion of top-line■Dispensing Pharmacy

Plan to open 41 pharmacies（Organic 21, M&A 20）■Cosmetic and Drug Store

Plan to open 6 stores

Recruiting and training of human resources■Planning to hire 600 newly graduated pharmacists and 620 medical support staff■Make field manager system and supervisor system more established■Training of human resources

Reinforcing the Groupʼs business base
■Improving the customer services by promoting digital transformation, such as official apps
■Promoting sustainable management

Expansion of AINZ&TULPE■Opening stores in prime locations and medium and long term store opening strategy© 2023 AIN HOLDINGS INC. All Rights Reserved.

19

Expansion of top-line■Dispensing Pharmacy

Plan to open 41 pharmacies（Organic 21, M&A 20）■Cosmetic and Drug Store

Plan to open 6 stores

FY4/24 2Q Results

FY4/24 Revised Plan

Dispensing
Pharmacies
Cosmetics andDrug stores

Dispensing
Pharmacies
Cosmetics andDrug stores

1,295

1,217
78

156
1

67
7

:Dispensing Pharmacies

1,322

144
7

112
17

1,240

162
1

82

218
2

358
43

︓Cosmetic and drug stores© 2023 AIN HOLDINGS INC. All Rights Reserved.

20

Expansion of top-line■Dispensing Pharmacy

Plan to open 41 pharmacies（Organic 21, M&A 20）■Cosmetic and Drug Store

Plan to open 6 stores

Opening■ Plan and Results

Plan

Results

Revised Plan

Dispensing Pharmacy

19

15

41

Organic

10

9

9

6

21

2

2

6

21

17

47

4
1

7
2

10

5

9

12

M&A
Cosmetic and drug store
Total
Dispensing Pharmacy
Cosmetic and drug store

ClosureFY4/24

FY4/24 2Q

Total

20

2

■ Transition of dispensing pharmacies
Organic
M&A

EV/EBITDA ratio

ClosedSold

No. of total stores

FY4/18

FY4/19FY4/20FY4/21

FY4/22

FY4/23

FY4/24 2Q

25

23

14

15

25

27

9

11
3.96
73
32
1,029

134
4.88
54
30
1,132

6
3.71
64
42
1,088

14
3.74
52
34
1,065

24
4.13
15
5
1,099

114
6.55
31
7
1,209

6
3.08
7
2
1,217

EV/EBITDA ratio=EV(Purchase price)/EBITDA(Operating profit + Depreciation)© 2023 AIN HOLDINGS INC. All Rights Reserved.

21

Recruiting and training of human resources■Planning to hire 600 newly graduated pharmacists and 620 medical support staff■Make field manager system and supervisor system more established■Training of human resources

In April 2023, new 543 pharmacists has joined our group. We aim to hire, new 600
pharmacists in fiscal 2024. As of April 30,2023, the group has 6,331 pharmacists out of
14,147 employees.
（People）（People）

Pharmacists
4,547

4,099

600

Medical support staff
4,742

5,004

No. of student applications
5,299
5,234

6,000
5,000
4,000

400

3,000
660

613

560

543

200
257

163

215

240

600 620346

2,000

No. of student
applications

No. of newly hired
students

800

1,000

213

0

0

2019

© 2023 AIN HOLDINGS INC. All Rights Reserved.

2020

2021

2022

2023

2024 （Plan）（Year）

22

Reinforcing the Groupʼs business base

■Improving the customer services by promoting digital transformation, such as official apps
■Promoting Sustainable Management

Three keys

Operatingenvironment

We aim to establish a competitive advantage in the sector by reinforcing our business base andincreasing profitability through digital transformation, responding to deregulation and advanced
technology, and providing added value that is unique to the AIN Group.
Revisions to dispensing fees

Deregulation

Technological innovation■ Revisions to dispensing fee■ Shift from a focus on dispensing
drugs to one-on-one communication
with patients■ Wider use of generic drugs■ Classification of pharmacies based onfunctions Online pharmaceutical guidance

 Deliveries using drones andReinforce the business baseRespond to deregulation

Dispensing Pharmacy
Business

Dispensing Pharmacy
Business■ Advances and efficiency ofdispensing operation(automated ordering, etc.)■ Upgrade core IT system for dispensing■ Distribute pharmacist learning content

Groupwide■ Digitize business processes / Introduce
business intelligence (BI) tools■ Reinforce security and networks■ Utilize smart devices■ Call centers of AI

Improve protability© 2023 AIN HOLDINGS INC. All Rights Reserved.

 Online eligibility checks(online checks of health insurance
cards)
 Digital drug prescriptions
 Repeat prescriptions

 Reinforce customer information

security

 Leverage official AIN Pharmacy

app –Anytime AIN Pharmacy
 Provide online pharmaceuticalguidance service via all
pharmacies
 Respond to digital prescriptions andonline eligibility checks via all
pharmacies
 Strengthen cooperation withhospitals, local communities

robots Use of AI and big data

Provide added value

Dispensing Pharmacy
BusinessIntegrated management of patient data
Leverage digital patient medication
notebook app
Provide 24-hour advice for customers(AI chatbot + pharmacists)
Utilize digital devices for home-based
dispensing service

Cosmetic and Drug StoreBusinessLeverage official AINZ & TULPE
app / Link to e-commerce channels
Reinforce the last one mile logistics

Branding / Strengthen competitiveness23

Reinforcing the Groupʼs business base

■Improving the customer services by promoting digital transformation, such as official apps
■Promoting Sustainable Management
We have conducted our corporate activities with common sense and ethics in order to realize our groupstatement of “the health and happiness of our customers" through our businesses contributing to people's
health and beauty. Going forward, we will achieve sustainable corporate growth, create social,environmental, and economic value, and realize sustainable management by changing and acting on our own
initiative, considering our customers and other diverse stakeholders.

1.Contribute to local healthcare

Pharmacies contributing to medical care that "treats
and supports in the entire community”

3.Safety, peace of mind
and trust
Delivering safety, peace ofmind, and trust through daily
operations
Preamble“realize the human rights of all”

2.Provide beauty and happiness

Providing beauty and happiness to enjoy
daily life in today's society

5.Ensure sound management
base

Strengthen a sound management basePreamble“realize the human rights of all”

4.Protect theenvironment and reduce
environmental impact
Contribute to environmental
protection and load reduction

6.Cooperate with local
communities and businesses
Promoting a healthy society andsustainability activities with local
communities and supply chains© 2023 AIN HOLDINGS INC. All Rights Reserved.

24

Reinforcing the Groupʼs business base

■Improving the customer services by promoting digital transformation, such as official apps
■Promoting Sustainable Management
Within our Sustainability Committee, approximately 30 project teams are promoting cross-sectoral
initiatives for each materiality.
5. Ensure sound management baseExpert Dialog
We invited outside experts
and hold a dialogue. We
received objective
evaluations and advice on
our sustainability activities,
which we reflect them in
our activities.
5. Ensure sound management basePlatinum Kurumin certification

In July 2023, AIN PHARMACIEZ
INC. received Platinum Kurumin
certification as a "parenting
support company." based on
the Act on Advancement of
Measures to Support Raising
Next-Generation Children.

© 2023 AIN HOLDINGS INC. All Rights Reserved.

6. Cooperate with local communities and businesses

CSR Procurement Briefing Session for Suppliers

We held a briefing session
and conducted a survey
for suppliers about CSR
Procurement. We arestrengthening supply chain
management for realizing
a sustainable society.
6. Cooperate with local communities and businesses

Community Health Events

All of our pharmacies
participated in “Healthy HeartDay” and ”Healthy Heart Week
2023” for aiming to prevent
heart disease and stroke. We
will continue to contribute tomaintain and improve thehealth in the community.
25

Expansion of AINZ&TULPE■Opening stores in prime locations and medium and long term store opening strategy

AINZ & TULPE
plan to open in FY4/24 (Revised Plan)

6

storesCOCONO SUSUKINO(Opened in Nov. 2023 )Tokyo(Plan to open in Mar. 2024 )COCOLIA TAMA CENTER(Opened in June 2023 ）YOKOHAMA PORTA（ Opened in Sep. 2023 ）© 2023 AIN HOLDINGS INC. All Rights Reserved.

26

FY4/24 Revised Plan (Consolidated)
The group forecasts net sales for the fiscal year ending April 30, 2024 increase 8.8% YoY andordinary profit increase 13.3% YoY due to new store openings of 41 stores for dispensing
pharmacy business and 6 stores for cosmetic and drug store business.
FY4/22
results

Net sales

316,247

358,742

390,263

31,521＋8.8

Gross profit

49,971

53,698

58,106

4,408

＋8.2

34,832

37,69439,656

1,962

＋5.2

15,13916,004

18,450

2,446

＋15.3

16,041

17,064

19,340

2,276

＋13.3

7,092

9,234

10,000766＋8.3% of net sales

2.2

2.6

2.6

Earnings per
share(¥)

201.47262.87284.64

21.77

＋8.3

55.00

60.00

60.00

-

0.0

% of net sales

SG&A expenses% of net sales

Operating profit% of net sales

Ordinary profit% of net sales

Profit attributable toowners of parent

Annual dividend (¥)

15.8
11.0
4.8
5.1

Figures in the table are rounded down
© 2023 AIN HOLDINGS INC. All Rights Reserved.

FY4/23
results

FY4/24
revised plan

YoY
Change（¥ million）

15.0
10.5
4.5
4.8

YoY
change (%)

14.9
10.2
4.7
5.0

27

Inquiries related to this presentation should be addressed to

AIN HOLDINGS INC.
Corporate Planning Division
TEL(81)11-814-0010
FAX(81)11-814-5550
https://www.ainj.co.jp/corporate/
This document may not be reproduced or distributed to any third party without
prior approval of AIN HOLDINGS INC. This document has been prepared for
information purpose only and does not form part of a solicitation to sell orpurchase any securities. Information contained herein may be changed orrevised without prior notice. This document may contain forecastingstatements as to future results of operations. No forecast statement can be
guaranteed and actual results of operations may differ from those projected.

© 2023 AIN HOLDINGS INC. All Rights Reserved.

28