FY4/23 1Q
IR PRESENTATION

September 2022

Results Overview© 2022 AIN HOLDINGS INC. All Rights Reserved.

1

Consolidated P/L
Net sales increased 8.6% YoY and declined 0.5% against the plan despite the impact of the COVID-19.
Ordinary profit increased 7.9% YoY and declined 2.9% against the plan due to increase of sales.

（¥ million）

FY4/22 1Q FY4/23 1Q
resultsplan

FY4/23 1Q
results

YoYchange

YoYchange(%)

Vs plan(%)

Net sales

75,011

81,887

81,470+6,459+8.6(0.5)

Gross profit

11,06012,471

11,643+583+5.3(6.6)

14.7

15.2

14.3

8,448

9,413

8,890

+442

+5.2

(5.6)

11.3

11.５

10.9

2,611

3,058

2,753+142+5.4(10.0)

3.5

3.7

3.4

2,864

3,180

3,089

+225

+7.9(2.9)

3.8

3.9

3.8

1,309

1,450

1,704

+395

+30.2

+17.5

% of net sales

1.7

1.8

2.1

Earnings pershare(¥)

37.10

41.19

48.53

+11.43

+30.8

+17.8

% of net sales

SG&A expenses% of net sales

Operating profit% of net sales

Ordinary profit% of net sales

Profit attributable toowners of parent

Figures in the table are rounded down
© 2022 AIN HOLDINGS INC. All Rights Reserved.

2Dispensing Pharmacy Business (Consolidated)
Net sales increased 8.5% YoY and declined 0.5% against the plan due to new store openings
including M&A and contribution of stores opened previous year. Segment profit declined 3.0% YoY
and 12.2% against the plan.
YoYchange

FY4/22 1Q
results

FY4/23 1Q
plan

FY4/23 1Q
results

Net sales

66,82872,81072,482+5,654+8.5(0.5)

Gross profit

8,138

9,1508,327+189+2.3

(9.0)

3,396

3,870

3,840+444+13.1

(0.8)

4,742

5,280

4,486(256)(5.4)(15.0)

4,879

5,390

4,731(148)(3.0)(12.2)

1,074

1,211

1,210+136+12.7(0.1)（¥ million）% of net sales

SG&A expenses% of net sales

Operating profit% of net sales

Segment profit% of net sales

Number ofpharmacies

12.2
5.1
7.1
7.3

12.6
5.3
7.3
7.4

YoYchange(%)

Vs plan(%)

11.5
5.3
6.2
6.5

Figures in the table are rounded down

© 2022 AIN HOLDINGS INC. All Rights Reserved.

3

Cosmetic and Drug Store Business (Consolidated)
Net sales up 20.2% YoY and declined 0.7% against the plan due to the recovery of existing storesand contribution of stores opened in previous year despite the impact of the COVID-19. Segment
profit was ¥164 million, ¥184 million above the plan.
YoYchangeYoYchange(%)

6,086+1,023

+20.2

(0.7)

2,256

2,245+544+32.0(0.5)

2,213

2,276

2,098

(115)

(5.2)

(7.8)

(511)

(20)

146+657--

(503)

(20)

164+667--707879+9+12.9+1.3

FY4/22 1Q
results

FY4/23 1Qplan

FY4/23 1Q
results

Net sales

5,063

6,130Gross profit

1,701（¥ million）% of net sales

SG&A expenses% of net sales

Operating profit% of net sales

Segment profit% of net sales

Number ofstores

33.6
43.7
-

36.8
37.1
-

Vs plan
(%)

36.9
34.5
2.4
2.7

Figures in the table are rounded down

© 2022 AIN HOLDINGS INC. All Rights Reserved.

4

Consolidated B/SNet cash became ¥30,947 million and shareholdersʼ equity ratio became 52.0%. We are
maintaining a sound financial structure even during the COVID-19 outbreak.
End-FY4/22
AssetsCurrent assets
Cash on handand in banks

Fixed assets
Goodwill

Liabilities

100,765

59,729111,696

36,352

Deferred
assetsTotal assets

End-FY4/23 1Q(¥ million)

AssetsCurrent assets

Current
liabilities

81,805

2,643

Cash on handand in banks

Long-term
liabilities

11,645

Fixed assets

Short-term debt

5,815

Goodwill- Total net assets 119,010

Deferred
assetsLong-term debt

Total liabilities

212,461 and net assets 212,461

Net cashShareholdersʼ equityratio(%)

51,03056.0

Total assets(¥ million)

Liabilities

96,163

46,863

132,231

49,344Current
liabilities

91,402Long-term
liabilities

18,217

Short-term debt

Long-term debt

4,167

11,218- Total net assets 118,773
Total liabilities

228,394 and net assets 228,394

Net cash
Shareholdersʼ equityratio(%)

30,94752.0

Figures in the table are rounded down
Net cash = Cash on hand and in banks – Interest-bearing debt
© 2022 AIN HOLDINGS INC. All Rights Reserved.

5Assets
The balance of total assets increased ¥15,933 million from the end of the previous fiscal year
due to decrease of cash on hand and in banks and increase of inventories and goodwill.
(¥ million)
Cash on hand and in banks
Notes and accounts receivable
Inventories
Total current assets
Buildings and structures,net
Land
Total property,plant and equipment
Goodwill
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

End-FY4/22 1Q

53,576
12,33815,18094,82916,345
9,976
30,11739,07942,788
2,638
4,633
21,31335,817End-FY4/22

59,729
10,11014,790100,765
17,512
8,581
30,63636,352
41,2192,503
5,319
22,78539,840End-FY4/23 1Q

46,863
12,697
19,504
96,163
19,505
10,63735,75549,34454,4792,649
5,957
23,234
41,996

Change(12,866)+2,587+4,714(4,602)+1,993+2,056+5,119+12,992+13,260
+146
+638
+449
+2,156

108,722

111,696

132,231+20,535----

203,552

212,461

228,394+15,933

Figures in the table are rounded down
Change:End-FY4/23 1Q compared with End-FY4/22
Capital expenditures (Property, plant and equipment and intangible fixed assets + Deposits and guarantees) totaled ¥3,210 million© 2022 AIN HOLDINGS INC. All Rights Reserved.

6

Liabilities and Net Assets
Accounts payable increased ¥8,706 million due to new store openings and M&A. Short-termand long-term debt increased ¥6,927 million.
(¥ million)

End-FY4/22 1Q

Accounts payable
Short-term debt

49,094
3,354

End-FY4/22

50,756
2,643

End-FY4/23 1Q

59,462
4,167

Change+8,706+1,52476,81681,80591,402+9,597

7,507

5,815

11,218+5,403

Total long-term liabilities

12,962

11,645

18,217+6,572

Total liabilities

89,77893,450109,620+16,170

Common stock

Total shareholdersʼ equity

21,89420,50072,878113,870

21,89420,50078,661
119,038

21,89420,50078,433
118,811

(228)
(227)

Total net assets

113,773

119,010

118,773(237)

Total liabilities and netassets

203,552

212,461

228,394+15,933

Figures in the table are rounded down

Change:End-FY4/23 1Q compared with End-FY4/22

Total current liabilities
Long-term debt

Capital surplus
Retained earnings© 2022 AIN HOLDINGS INC. All Rights Reserved.

7

FY4/23 Plan (Consolidated)
The group forecasts net sales for the fiscal year ending April 30, 2023 of ¥363,000 million,
increase 14.8% YoY and ordinary profit of ¥20,500 million, increase 27.8% YoY.
（¥ million）

Net sales

297,305

316,247

363,000 +46,753+14.8

Gross profit

46,15549,97158,720+8,749+17.5

35,222

34,832

38,720+3,888+11.2

10,932

15,13920,000+4,861+32.1

12,64916,041

20,500+4,459

+27.8

6,697

7,092

11,000+3,908+55.1% of net sales

2.3

2.2

3.0

Earnings pershare(¥)

189.04201.47313.15 +111.68

+55.4

55.00

55.00

60.00

% 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 (¥)

15.5
11.8
3.7
4.3

FY4/22
results

FY4/23plan

YoYchangeFY4/21
results

15.8
11.0
4.8
5.1

YoY
change(%)

16.210.7
5.5
5.6+5.00+9.1

Figures in the table are rounded down
© 2022 AIN HOLDINGS INC. All Rights Reserved.

8

Review© 2022 AIN HOLDINGS INC. All Rights Reserved.

9

Daily new COVID-19 cases across Japan
As of September 1, the number of domestic cases of the COVID-19 infection and deaths
was 19,116,887 and 40,245, respectively.
（people）
300,000

Aug.2
263,535

Tokyo Olympics

250,000

Jul.23－Aug.8

200,000

Tokyo Paralympics
Aug.24－Sep.5

state of emergency
Apr.7－May.25

Jan.8－Mar.21 Apr.25－Jun20 Jul.12－Sep.30

pre-emergency
measuresJan.7－Mar.21

150,000
Feb.1
103,701

100,000
50,0000Apr.10
640

Aug.7
1,597

Jan.8
8,045

4/20
488

1/21
21/1

May 12
7,059

Aug.2025,975

Sep.1
149,90655888

2/2223388（m/y）

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© 2022 AIN HOLDINGS INC. All Rights Reserved.

10Review (YoY)
Ordinary profit increased ¥0.2 billion due to increase of net sales in both dispensing pharmacyand cosmetic and drug store businesses.
Net sales+¥6.4 billion¥81.4 billion +8.6%¥75.0 billion■Dispensing
Pharmacy+¥5.6 billion
Dispensing
Dispensing
Pharmacy¥66.8 billion

Cosmetic and DrugStore ¥5.1 billion
Others ¥3.1 billion

FY4/22
1Q

Pharmacy¥72.4 billion■Cosmetic andDrug store+¥1.0 billion■Retail shop,
OthersCosmetic and DrugStore ¥6.1 billion¥(0.2) billion
Others ¥2.9 billion

FY4/23
1Q© 2022 AIN HOLDINGS INC. All Rights Reserved.

Ordinary profit+¥0.2 billion¥2.8 billion ¥3.0 billion +7.9%■Dispensing
Pharmacy
Dispensing
Pharmacy

Dispensing
Pharmacy¥4.8 billion¥4.7 billion

Gross profit¥(0.1) billion■Cosmetic andDrug store
Cost reform

Cosmetic and Drug+¥0.6 billion
Others ¥0.0 billion Store ¥(0.1) billion
Cosmetic and Drug Others ¥0.0 billion
Store ¥(0.5) billion Administrative
Administrative
expenseAdministrative
expense,expense¥(1.8) billion¥(1.5) billion
OthersFY4/22
1Q

FY4/231Q¥(0.3) billion

11Strategy© 2022 AIN HOLDINGS INC. All Rights Reserved.

12Strategy
Expansion of top-line and increase profits■Dispensing Pharmacy

Plan to open 160 pharmacies（Organic 48, M&A 112）

■Cosmetic and Drug Store

Plan to open 10 stores

Recruiting and training of human resources■Planning to hire 600 newly graduated pharmacists（hired 660 new pharmacists in FY4/22）■Make the Field Manager system more established■Training of human resources

Reinforcing the Groupʼs business base
■Improving the customer services by promoting DX, such as official apps
■Promoting Sustainability Management

Turnaround and expansion of AINZ&TULPE■Opening stores in prime locations and optimizing costs© 2022 AIN HOLDINGS INC. All Rights Reserved.

13

Expansion of top-line and increase profits 1
FY4/23 1Q Results

FY4/23 Plan

Dispensing
Pharmacies
Cosmetics andDrug stores

Dispensing
Pharmacies
Cosmetics andDrug stores

1,289

1,210
79

1,332

109
18

1,249
83

166
2162
265
7:Dispensing Pharmacies

108
2139
8461
40︓Cosmetic and drug stores© 2022 AIN HOLDINGS INC. All Rights Reserved.

14

Expansion of top-line and increase profits 2■ PlanFY4/23

FY4/23 1QOpeningPlanPlan160

Dispensing Pharmacy

116

117

Organic

8810810922118

11942611056715

1,211

1,210

1,249

78

79

1,289

1,289

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

ClosureResults

Total

Dispensing Pharmacy
Cosmetic and drug store
Total no. of stores

48112
10170831,332■ Transition of dispensing pharmacies
Organic
M&A

EV/EBITDA ratio

ClosedSold

No. of total stores

FY4/17

FY4/18

FY4/19FY4/20FY4/21

FY4/22

FY4/23 1Q

2725231415258182
5.50
2421,066

113.967332
1,0291344.8854
30
1,1326
3.71
64
42
1,088

14
3.74
52
34
1,065

24
4.13
15
5
1,099

109
6.87
6
1
1,210

EV/EBITDA ratio=EV(Purchase price)/EBITDA(Operating income + Depreciation and amortization)© 2022 AIN HOLDINGS INC. All Rights Reserved.

15

Recruiting and training of human resources
In April 2022, new 660 pharmacists has joined our group. We aim to hire roughly the same
number in fiscal 2023. As of July 31,2022, the group has 6,154 pharmacists out of 13,774
employees.
（people）

800

No. of newly-hired pharmacists

600

4,099

4,5474,742

5,004

5,230

5,000
4,000

400

3,000560

613

660

600

2,000200

No. of student applications

No. of newly-hired pharmacists

No. of student applications（people）
6,000

1,000

257002019© 2022 AIN HOLDINGS INC. All Rights Reserved.

2020

2021

2022

2023

（Plan）（year）

16

AINZ & TULPE
AINZ & TULPE
plan to open in FY4/23

10stores

MOSAICMALL Kohoku(Opened in May 2022)

KOBE MOTOMACHI(Opened in June 2022)

FUTAKO TAMAGAWA RISE
(Plan to open inOctober 2022)© 2022 AIN HOLDINGS INC. All Rights Reserved.

Tokyo(Plan to open inMarch 2023)

17

FY4/23 Plan (Consolidated)
The group forecasts net sales for the fiscal year ending April 30, 2023 of ¥363,000 million,increase 14.8% YoY and ordinary profit of ¥20,500 million, increase 27.8% YoY.
（¥ million）

Net sales

297,305

316,247

363,000 +46,753+14.8

Gross profit

46,15549,97158,720+8,749+17.5

35,222

34,832

38,720+3,888+11.2

10,932

15,13920,000+4,861+32.1

12,64916,041

20,500+4,459

+27.8

6,697

7,092

11,000+3,908+55.1% of net sales

2.3

2.2

3.0

Earnings pershare(¥)

189.04201.47313.15 +111.68

+55.4

55.00

55.00

60.00

% 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 (¥)

15.5
11.8
3.7
4.3

FY4/22
results

FY4/23plan

YoYchange

FY4/21
results

15.8
11.0
4.8
5.1

YoY
change(%)

16.2
10.7
5.5
5.6

+5.00

+9.1

Figures in the table are rounded down
© 2022 AIN HOLDINGS INC. All Rights Reserved.

18Inquiries related to this presentation should be addressed toAIN 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.

© 2022 AIN HOLDINGS INC. All Rights Reserved.

19