FY4/22 2Q
IR PRESENTATION

December 2021

Results Overview© 2021 AIN HOLDINGS INC. All Rights Reserved.

1

Consolidated P/L
Net sales increased 5.2% YoY and 3.4% against the plan due to increase of sales in dispensing pharmacy
business, despite the impact of the COVID-19. Ordinary profit increased 35.6% YoY and 9.4% against
the plan due to increase of sales.

(¥ million)

FY4/21 2Q
results

FY4/22 2Q
plan

FY4/22 2Q
results

YoYchangeNet sales

145,352

147,900

152,972+7,620+5.2+3.4

Gross profit

21,43523,00022,838+1,403

+6.5

(0.7)

SG&A expenses

17,50817,70017,062

(446)

(2.5)

(3.6)

Operating profit

3,927

5,300

5,776

+1,849

+47.1

+9.0

Ordinary profit

4,517

5,600

6,127

+1,610

+35.6

+9.4

Profit attributable toowners of parent

2,630

2,780

3,338

+708

+26.9

+20.1

% of net sales

1.8

1.9

2.2

Earnings per
share(¥)

74.24

78.47

94.68

+20.44

+27.5

+20.7

% of net sales% of net sales% of net sales% of net sales

14.7
12.0
2.7
3.1

15.6
12.0
3.6
3.8

14.9
11.2
3.8

YoY
change(%)

Vs plan(%)

4.0

Figures in the table are rounded down
© 2021 AIN HOLDINGS INC. All Rights Reserved.

2

Dispensing Pharmacy Business (Consolidated)
Net sales increased 6.9% YoY and 5.0% against the plan due to the recovery in prescription volume atexisting stores and the contribution of stores opened in previous year. Segment profit increased 25.3%
YoY and 12.8% against the plan due to increase of sales.

(¥ million)

FY4/21 2Q
results

FY4/22 2Q
plan

FY4/22 2Q
results

YoYchangeNet sales

128,029

130,400

136,905+8,876+6.9+5.0

Gross profit

15,00816,30017,115+2,107

+14.0

+5.0

7,109

7,200

6,902

(207)

(2.9)

(4.1)

7,898

9,100

10,212+2,314

+29.3

+12.2

8,370

9,300

10,491+2,121

+25.3

+12.8

1,070

1,090

1,091

+21

+2.0

+0.1

% of net sales

SG&A expenses% of net sales

Operating profit% of net sales

Segment profit% of net sales

Number ofpharmacies

11.7
5.6
6.2
6.5

12.5
5.5
7.0
7.1

12.5
5.0
7.5

YoY
change(%)

Vs plan(%)

7.7

Figures in the table are rounded down

© 2021 AIN HOLDINGS INC. All Rights Reserved.

3

Cosmetic and Drug Store Business (Consolidated)
Net sales up 4.6% YoY and declined 7.7% against the plan due to the recovery of existing storesand contribution of stores opened in previous year despite the impact of temporarily shorted
opening hours and refrainment from going out under the spread of COVID-19. Segment loss was¥1,125 million, ¥195 million below the plan.
YoY
FY4/21 2Q FY4/22 2Q FY4/22 2Q
YoY
Vs planchange(%)(%)(¥ million)
resultsplan
resultschangeNet sales

9,388

10,630

9,816

+428

+4.6

(7.7)

Gross profit

3,469

3,890

3,321

(148)

(4.3)

(14.6)

4,596

4,840

4,475

(121)

(2.6)

(7.5)

(1,127)(950)(1,153)

(26)

-

-

(1,014)(930)(1,125)

(111)

-

-

63

72

72

+9

+14.3

+0.0

% of net sales

37.0

SG&A expenses% of net sales

Operating profit% of net sales

Segment profit% of net sales

49.0

Number of stores

-

36.6
45.5

-

33.8
45.6

-

Figures in the table are rounded down

© 2021 AIN HOLDINGS INC. All Rights Reserved.

4

Consolidated B/S
Net cash became ¥48,704 million and shareholders’ equity ratio became 55.0%. We are
maintaining a sound financial structure even during the COVID-19 outbreak.
(¥ million)(¥ million)

End-FY4/21
AssetsCurrent assets
Cash on hand andin banks

Fixed assets

End-FY4/22 2Q
AssetsLiabilities

96,398 Current liabilities
55,271

107,264

Short-term debt
Lease obligations

74,1603,670
94Long-term
liabilities

13,664

111,881

Short-term debt
Lease obligations

3,051
57

Long-term
liabilities

12,672Long-term debt
Lease obligations

6,860
17

115,837

Deferred
assets-Total net assets

115,810

203,662

Total assets

210,442

Total liabilities
and net assets

210,442

43,171

Net cashLong-term debt
Lease obligations

8,297
37

Deferred
assets-Total net assets

203,662

Total liabilities
and net assets

Shareholders’ equity
ratio(%)

Fixed assets

58,692

81,95939,13339,057

Net cashCash on hand andin banks

98,561 Current liabilities

Goodwill

Goodwill

Total assets

Current assets

Liabilities

56.8

Shareholders’ equity
ratio(%)

48,70455.0

Figures in the table are rounded down
Net cash = Cash on hand and in banks – Interest-bearing debt (Long-and short-term debt + Lease obligations)© 2021 AIN HOLDINGS INC. All Rights Reserved.

5

Assets
The balance of total assets increased ¥6,780 million from the end of the previous fiscal year
due to increase of cash on hand and in banks.
(¥ million)

End-FY4/21 2Q

Cash on hand and in banks
Notes and accounts receivable
Inventories
Total current assets
Buildings and structures,net
Land
Lease assets
Total property,plant and equipment
Goodwill
Lease assets
Total intangible fixed assets
Investments in securities
Deferred tax assets
Deposits and guarantees
Total investments and other assets
Total fixed assets
Total deferred assets
Total assets

Figures in the table are rounded down

54,616
11,953
14,79694,006
16,225
10,409166
30,16940,563
3
43,715
2,335
4,315
19,49331,629105,514
199,521End-FY4/21

55,271
13,475
14,28596,398
16,270
10,390100
30,22939,057
1
42,666
2,697
4,415
20,31934,368107,264
203,662

End-FY4/22 2Q

58,692
9,928
16,312
98,561
17,034
10,03058
31,266
39,133043,1802,429
4,629
22,95137,434
111,881
210,442

Change+3,421(3,547)+2,027+2,163
+764
(360)
(42)
+1,037
+76
(1)
+514
(268)
+214
+2,632+3,066+4,617+6,780Change:End-FY4/22 2Q compared with End-FY4/21

Capital expenditures (Property, plant and equipment and intangible fixed assets + Deposits and guarantees) totaled ¥6,630 million© 2021 AIN HOLDINGS INC. All Rights Reserved.

6

Liabilities and Net Assets
Accounts payable increased ¥4,707 million due to the increased purchases from new store
openings and M&A. Short-term and long-term debt decreased ¥2,056 million due to repayment.
(¥ million)

End-FY4/21 2Q

End-FY4/21

End-FY4/22 2Q

ChangeShort-term debt

45,6194,694

46,7583,670

51,465
3,051+4,707(619)

Lease obligations

137

94

57

(37)

73,27574,16081,959+7,799Long-term debt

9,165

8,297

6,860

(1,437)

Lease obligations

82

37

17

(20)

Total long-term liabilities

14,526

13,664

12,672(992)

Total liabilities

87,80287,825

94,632+6,807

Common stock

Total shareholders’ equity

21,89420,50069,439111,832

21,89420,50073,506
115,899

21,89420,50074,907
115,899+1,401-

Total net assets

111,719

115,837

115,810(27)

Total liabilities and net assets

199,521203,662

210,442+6,780Accounts payable

Total current liabilities

Capital surplus
Retained earnings

Figures in the table are rounded down

© 2021 AIN HOLDINGS INC. All Rights Reserved.

Change:End-FY4/22 2Q compared with End-FY4/21

7

Consolidated C/F
Operating activities was ¥17,314 million due to active new store opening especially focus on largescale store. Cash and cash equivalents at the end of the quarter were ample, up ¥4,116 million
from the previous fiscal year.
(¥ million)

FY4/21 2Q

FY4/22 2Q

Change6,441

17,314+10,873

Profit before income taxes

4,524

6,064

+1,540Depreciation and amortization

2,024

2,117

+93

Amortization of goodwill

2,225

2,055

(170)

Increase (decrease) in accounts receivable

1,818

4,245

+2,427567(1,707)(2,274)(992)(1,316)(324)(1,668)

3,983+5,651(3,759)(8,261)(4,502)(2,974)(3,590)

(616)

(257)

(2,223)(1,966)

Net cash provided by financing activities

5,702(5,630)(11,332)

Net increase in cash and cash equivalents

8,385

3,422

(4,963)54,31658,432+4,116

Net cash provided by operating activities

Increase (decrease) in inventories
Increase (decrease) in other accounts receivable(Increase) decrease in accounts payable
Net cash used in investing activities
Payments for purchases of property, plantand equipment and intangible fixed assets
Purchase of subsidiaries’ shares resulting
in obtaining controls

Cash and cash equivalents at end of the year
Figures in the table are rounded down
© 2021 AIN HOLDINGS INC. All Rights Reserved.

8

Business Value Analysis
FY4/21 2Q

Shareholders’ 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)
Shareholders’ value (¥ million)
Market capitalization (¥ million)

56.0
129.6
49.17
74.24
2.31
3,151.54
1.3
2.4
8,176
26.74
(0.36)
40,537259,191
258,619

FY4/21

56.8
105.6
32.11
189.04
1.86
3,267.49
3.4
5.9
19,6128.80(0.37)
43,171
215,710215,043

FY4/22 2Q

55.0
112.3
35.43
94.68
2.05
3,285.58
1.6
2.9
9,949
18.94
(0.42)
48,704
237,005
236,375

Change(1.0)(17.3)(13.74)+20.44(0.26)+134.04+0.3+0.5+1,773(7.80)(0.06)+8,167(22,186)(22,244)

Figures in the table are rounded down
Change：FY4/22 2Q compared with FY4/21 2Q
Net D/E ratio = (Interest-bearing debt – Cash on hand and in banks) / Shareholders’ equity
Shareholders’ value = EV – Net interest-bearing debt
Market capitalization：Treasury stock is excepted
Share prices used to calculate market capitalization:
End-FY4/21 2Q ¥7,300 (End-Oct,2020), End-FY4/21 ¥6,070 (End-Apr,2021), End-FY4/22 2Q ¥6,710 (End-Oct,2021).
Net cash = Cash on hand and in banks – Interest-bearing debt (Long-and short-term debt + Lease obligations )© 2021 AIN HOLDINGS INC. All Rights Reserved.

9

FY4/22 Plan (Consolidated)
The group forecasts net sales for the fiscal year ending April 30, 2022 of ¥315,000 million,
increase 6.0% YoY and ordinary profit of ¥15,500 million, increase 22.5% YoY.
YoYchangeFY4/20results

FY4/21
results

FY4/22plan

Net sales

292,615

297,305

315,000 +17,695+6.0

Gross profit

46,861

46,15551,600+5,445+11.8

30,79335,22236,600+1,378+3.9

16,068

10,932

15,000+4,068+37.2

16,822

12,64915,500+2,851

+22.5

9,179

6,697

8,300

+1,603+23.9% of net sales

3.1

2.3

2.6

Earnings per
share(¥)

259.11189.04234.28+45.24

+23.9

55.00

55.00

55.00

+0.00

+0.0

（¥ million）% 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 (¥)

16.0
10.5
5.5
5.7

15.5
11.8
3.7
4.3

16.4
11.6
4.8

YoY
change(%)

4.9

Figures in the table are rounded down
© 2021 AIN HOLDINGS INC. All Rights Reserved.

10

Review© 2021 AIN HOLDINGS INC. All Rights Reserved.

11

Daily new COVID-19 cases across Japan
As of December 8, the number of domestic cases of the COVID-19 infection and deaths
was 1,727,904 and 18,369, respectively.
（people）
25,000Aug.2025,852

No. of daily positive cases

Paralympic

20,000Aug.24－Sep.5
Olympic

15,00010,000Jul.23－Aug.8
Declaration of
the state of emergency

Declaration of the state of emergency

Apr.7－May.25

Jan.8－Mar.21 Apr.25－Jun.20
Jan.8
7,844

5,000

0

Apr.10708

Jul.12－Sep.30

May 12
7,057

Aug.7
1,595

20/4
44/20 5 55 5 66 67 7 78

Dec. 8
136

89
8

9
10
9

10 11
122 2 21/1
812
11
1211
1/21
3 3 4 4 25 5 36 6 47 7 58 8 96 9 107101111月
10
12
21/1
（m/y）
（年/月）
the Ministry of Health, Labour and Welfare's Open Data on the COVID-19

The period of declaration of the state of emergency is taken from the region with the longest period© 2021 AIN HOLDINGS INC. All Rights Reserved.

12

Review (YoY)
Ordinary profit increased ¥1.6 billion due to increase of net sales in dispensing pharmacy business.

Net sales¥145.3 billion+¥1.6 billion¥152.9 billion¥6.1 billion

Dispensing
Pharmacy

Dispensing
Pharmacy¥128.0 billion¥136.9 billion

Cosmetic andDrug Store

Cosmetic andDrug Store

Others ¥7.9 billion

Others ¥6.2 billion

FY4/21 2Q
results

FY4/22 2Q
results¥9.4 billion

Ordinary profit+¥7.6 billion¥9.8 billion© 2021 AIN HOLDINGS INC. All Rights Reserved.

Dispensing
Pharmacy¥4.5 billion+¥8.9 billion

Cosmetic andDrug store+¥0.4 billion
Retail shop,
Others¥(1.7)billion

Dispensing
Pharmacy¥8.3 billion

Dispensing
Pharmacy¥10.4 billion

Others ¥(0.4) billion

Others ¥(0.1) billion¥(1.0) billion¥(1.1) billion

Cosmetic andDrug Store

Cosmetic andDrug Store

Administrative
expense¥(2.4) billion

Administrative
expense¥(3.1) billion

FY4/21 2Q
results

FY4/22 2Q
results

Net sales
increased,
Others+¥2.1 billion

Administrative
expense,Others+¥0.5 billion

13

Review (Vs plan)
Net sales achieved the plan due to the steady increase of the dispensing pharmacy business, andordinary profit increased ¥0.5 billion against the plan.

Net sales¥147.9 billion

Ordinary profit+¥5.0 billion+¥0.5 billion¥152.9 billion¥6.1 billion

Dispensing
Pharmacy

Dispensing
Pharmacy¥130.4 billion¥136.9 billion

Cosmetic andDrug Store

Cosmetic andDrug Store

Others ¥6.9 billion

Others ¥6.2 billion

FY4/22 2Q
plan

FY4/22 2Q
results¥10.6 billion¥9.8 billion

Dispensing
Pharmacy¥5.6 billion+¥6.5 billion

Cosmetic andDrug store¥(0.8) billion
Retail shop,
Others¥(0.7)billion

Dispensing
Pharmacy¥9.3 billion
Others ¥0.0 billion

Cosmetic andDrug Store¥(0.9) billion

Administrative
expense¥(2.8) billion

FY4/22 2Q
plan© 2021 AIN HOLDINGS INC. All Rights Reserved.

Dispensing
Pharmacy

Net sales
increased,
Others¥10.4 billion+¥1.1 billion

Others ¥(0.1) billion

Cosmetic andDrug store,
Administrative
expense,Others+¥0.6 billion

Cosmetic andDrug Store¥(1.1) billion

Administrative
expense¥(3.1) billion

FY4/22 2Q
results

14

Strategy© 2021 AIN HOLDINGS INC. All Rights Reserved.

15

Strategy
Expansion of Top-line■Dispensing Pharmacy

Planning to open 80 pharmacies （Organic 40, M&A 40 ）■Cosmetic and Drug Store

Planning to open 15 stores

Recruitment and training of human resources■Planning to hire 600 newly graduated pharmacists（hired 613 new pharmacists in FY4/21）■Newly assign 100 employees dedicated to the management of dispensing pharmacies■Training of human resources

Reinforcing the Group’s business base■Securing specialized human resources with expertise in IT and logistics■Promoting Sustainable Management■Improving the customer services by enhancing official app and EC website

Expansion and turnaround of AINZ&TULPE■Opening stores in satellite city are and optimizing management costs© 2021 AIN HOLDINGS INC. All Rights Reserved.

16

Top-line
The group opened 37 stores including M&A, and closed 8 stores during the FY4/22 2Q.
■ PlanFY4/22

FY4/22 2Q

Results

Plan

Dispensing Pharmacy

30

33

80

Organic

13

12

40

M&A

17

21

40

Cosmetic and drug store

4

4

15

Total

34

37

95

Dispensing Pharmacy

5

7

Cosmetic and drug store

1

1

5
2

Total

6

8

7

1,090

1,091

1,140

Cosmetic and drug store

72

72

Total no. of stores

1,162

1,163

ClosureOpening

Plan

Dispensing Pharmacy■ Transition of dispensing pharmacies
FY4/14 FY4/15 FY4/16
Organic
M&A

EV/EBITDA ratio

ClosedSold

No. of total stores

82

1,222

Hokkaido
125
Koshinetsu
106
Chugoku,
Shikoku
92

Tohoku169

Hokuriku
24

Kyusyu, Okinawa
61

Kinki
128

Kanto
376
Tokai
82
End-FY4/22 2Q

FY4/17

FY4/18

FY4/19FY4/20FY4/21

FY4/21 2Q

36

40

32

27

25

23

14

15

12

26
3.94

119
4.77

110
5.37

182
5.50

11
3.96

134
4.88

6
3.71

14
3.74

21
4.26

6
1
616

21
1
754

15
1
881

24
2
1,066

73
32
1,029

54
30
1,132

64
42
1,088

52
34
1,065

7
3
1,091

EV/EBITDA ratio=EV(Purchase price)/EBITDA(Operating income + Depreciation and amortization)© 2021 AIN HOLDINGS INC. All Rights Reserved.

17

Recruiting of Pharmacists
In April 2021, new 613 pharmacists has joined our group. We aim to hire roughly the same
number in fiscal 2022.
■ Transition of No. of national examination passers and new qualified pharmacists in AIN Group2013（People）

No. of newly qualified
pharmacists hired in
AIN Group
No. of pharmacists’national examination
passers (pass rate)
Rate of newly qualified
pharmacists hired in
AIN Group

2014

2015

2016

2017

2018

2019

2020

2022
(Plan)

2021

251

251

229

375

307

279

257

560

613

600

8,929

7,312

9,044

11,488

9,479

9,584

10,194

9,958

9,634

-

2.5%

3.3%

3.2%

2.5%

5.6%

6.4%

-

（79.1%） （60.8%） （63.2%） （76.9%） （71.6%） （70.6%） （70.9%） （69.6％） （68.7％）

3.4%

2.8%

（7.0%）（8.0%）（8.0%） （11.7%） （10.0%）

2.9%（8.0％）（5.8%) （11.6%） （12.3%）

Estimates : based on the result in AIN Group, and data from the Ministry of Health, Labor and Welfare, Council on Pharmaceutical Education.

（People）

1,200

General staff

Pharmacists

No. of newly-hired employees

1,000
800
600
400
200
0

375
251

251

53

28

2013

2014

© 2021 AIN HOLDINGS INC. All Rights Reserved.

229

307

279

93

173

174

152

2015

2016

2017

2018

560

613

392

405

350

2020

2021

2022 （year）

600

257
277

2019

（Plan）

18

Sustainability Management
The group defined and disclosed important issues that should be addressed by the Group(materiality) in December 2020, and formulated a human rights policy in December 2021 as
one of the initiatives for promoting respect of human rights.
Materiality

Related SDGs

1.Contribute to local healthcare■Materiality:5
Ensure sound management basePharmacies contributing to medicalcare that "treats and supports in theentire community”

Fomulated and disclosed the "Ain Group
Human Rights Policy" by resolution of theBoard of Directors on December 1, 2021.

2.Provide beauty and happiness
Providing beauty and happiness toenjoy daily life in today's society

3.Safety, peace of mind and trust
Delivering safety, peace of mind, andtrust through daily operations

Preamble“realize the human rights of all”

4.Protect the environment andreduce environmental impact

Contribute to environmental protection
and load reduction

5.Ensure sound management
base

Preamble“realize the human rights of all”

Strengthen a sound management base

6.Cooperate with local
communities and businesses
Promoting a healthy society andsustainability activities with local
communities and supply chains© 2021 AIN HOLDINGS INC. All Rights Reserved.

19

AINZ & TULPE
AINZ & TULPE
plan to open in FY4/22

15

storesTokyo

LACHIC FUKUOKA TENJIN(October, 2021)

SEVEN PARK AMAMI (Osaka)(November, 2021）

TOKYU SQUARE MINATOMIRAI(Kanagawa) (November, 2021)

FukuokaKagoshima© 2021 AIN HOLDINGS INC. All Rights Reserved.

GRANDUO Tachikawa (Tokyo)(September, 2021)

AMU PLAZA KAGOSHIMA(October, 2021)

Ofuna（Kanagawa）（July, 2021）
20

FY4/22 Plan (Consolidated)
The group forecasts net sales for the fiscal year ending April 30, 2022 increase 6.0% and ordinary
profit increase 22.5% YoY by opening new stores (80 dispensing pharmacies and 15 cosmetic anddrug stores).
YoY
FY4/20FY4/21
FY4/22
YoYchange(%)（¥ million）
results
resultsplanchangeNet sales

292,615

297,305

315,000 +17,695+6.0

Gross profit

46,861

46,15551,600+5,445+11.8

30,79335,22236,600+1,378+3.9

16,068

10,932

15,000+4,068+37.2

16,822

12,64915,500+2,851

+22.5

9,179

6,697

8,300

+1,603+23.9% of net sales

3.1

2.3

2.6

Earnings per
share(¥)

259.11189.04234.28+45.24

+23.9

55.00

55.00

55.00

+0.00

+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 (¥)

16.0
10.5
5.5
5.7

15.5
11.8
3.7
4.3

16.4
11.6
4.8
4.9

Figures in the table are rounded down
© 2021 AIN HOLDINGS INC. All Rights Reserved.

21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/
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.

© 2021 AIN HOLDINGS INC. All Rights Reserved.

22