FY4/23 2Q
IR PRESENTATION

December 2022

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

1

Consolidated P/L
Net sales increased 11.9% YoY and declined 0.9% against the plan due to new store openings andcontribution of existing stores, despite the impact of the COVID-19. Ordinary profit increased 18.9%
YoY and declined 16.6% against the plan due to increase of sales.
YoYchange（¥ million）

FY4/22 2Q FY4/23 2Q
resultsplan

FY4/23 2Q
results

Net sales

152,972

172,833

171,204 +18,232

+11.9

(0.9)

Gross profit

22,83827,28824,986+2,148

+9.4

(8.4)

14.9

15.8

14.6

17,06218,803

18,202+1,140

+6.7

(3.2)

11.2

10.9

10.6

5,776

8,485

6,784

+1,008+17.5 (20.0)

3.8

4.9

4.0

6,127

8,732

7,283

+1,156+18.9 (16.6)

4.0

5.1

4.3

3,338

4,497

3,804

+466

+14.0 (15.4)% of net sales

2.2

2.6

2.2

Earnings per
share(¥)

94.68

128.02

108.30+13.62+14.4 (15.4)% of net sales

SG&A expenses% of net sales

Operating profit% of net sales

Ordinary profit% of net sales

Profit attributable toowners of parent

YoY
Vs planchange(%)(%)

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

2

Dispensing Pharmacy Business (Consolidated)
Net sales increased 11.9% YoY and declined 0.9% against the plan due to new store openings
including M&A and contribution of stores opened previous year. Segment profit increased 2.6% YoY
and declined 17.4% against the plan.
YoYchange（¥ million）

FY4/22 2Q
results

FY4/23 2Q
plan

FY4/23 2Q
results

Net sales

136,905

154,660

153,248 +16,343

+11.9

(0.9)

Gross profit

17,11520,60018,335+1,220+7.1(11.0)

6,902

7,799

8,000

+1,098

+15.9

+2.6

10,212

12,80010,334+122+1.2(19.3)

10,491

13,04010,769+278+2.6(17.4)

1,091

1,213

1,209

+118

+10.8

(0.3)

% of net sales

12.5

SG&A expenses% of net sales

Operating profit% of net sales

Segment profit% of net sales

5.0

Number ofpharmacies

7.5
7.7

13.3
5.0
8.3
8.4

YoY
change(%)

Vs plan
(%)

12.0
5.2
6.7
7.0

Figures in the table are rounded down

© 2022 AIN HOLDINGS INC. All Rights Reserved.

3

Cosmetic and Drug Store Business (Consolidated)
Net sales up 24.3% YoY and 0.1% against the plan due to the recovery of existing stores andcontribution of stores opened in previous year despite the impact of the COVID-19. Segment profit
was ¥349 million, ¥403 million above the plan.
YoYchangeYoYchange(%)

12,205+2,389

+24.3

+0.1

4,534

4,562

+1,241

+37.4

+0.6

4,475

4,588

4,244

(231)

(5.2)

(7.5)

(1,153)(54)317+1,470--(1,125)(54)349+1,474

-

-

72

81

78

+6

+8.3

(3.7)

FY4/22 2Q
results

FY4/23 2Q
plan

FY4/23 2Q
results

Net sales

9,816

12,195Gross profit

3,321（¥ million）% of net sales

33.8

SG&A expenses% of net sales

Operating profit% of net sales

Segment profit% of net sales

45.6

Number ofstores

-

37.2
37.6
-

Vs plan
(%)

37.4
34.8
2.6
2.9

Figures in the table are rounded down

© 2022 AIN HOLDINGS INC. All Rights Reserved.

4

Consolidated B/S
Net cash became ¥32,608 million and shareholdersʼ equity ratio became 52.3%. We are
maintaining a sound financial structure even under the ongoing COVID-19 situation.
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 2Q(¥ 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 cash
Shareholdersʼ equity
ratio(%)

51,03056.0

Total assets(¥ million)

Liabilities

98,28846,723

132,853

48,388Current
liabilities

93,308Long-term
liabilities

16,964

Short-term debt

Long-term debt

3,776

10,038- Total net assets 120,869
Total liabilities

231,141 and net assets 231,141

Net cash
Shareholdersʼ equity
ratio(%)

32,60852.3

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 ¥18,680 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 2Q

58,692
9,928
16,312
98,561
17,034
10,03031,266
39,133
43,1802,429
4,629
22,95137,434End-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 2Q

46,723
12,147
21,44098,28819,983
10,58536,90348,38853,717
2,811
6,069
23,07042,232

Change(13,006)+2,037+6,650(2,477)+2,471+2,004+6,267+12,036+12,498
+308
+750
+285
+2,392

111,881

111,696

132,853+21,157

-

-

-

-

210,442

212,461

231,141+18,680

Figures in the table are rounded down
Change:End-FY4/23 2Q compared with End-FY4/22
Capital expenditures (Property, plant and equipment and intangible fixed assets + Deposits and guarantees) totaled ¥5,997 million© 2022 AIN HOLDINGS INC. All Rights Reserved.

6

Liabilities and Net Assets
Accounts payable increased ¥9,963 million due to new store openings including M&A. Shortterm and long-term debt increased ¥5,356 million.
(¥ million)

End-FY4/22 2Q

Accounts payable
Short-term debt

51,465
3,051

End-FY4/22

50,756
2,643

End-FY4/23 2Q

60,7193,776

Change+9,963+1,133

81,95981,80593,308+11,503

6,860

5,815

10,038+4,223

Total long-term liabilities

12,672

11,645

16,964+5,319Total liabilities

94,63293,450110,272+16,822

Common stock

Total shareholdersʼ equity

21,89420,50074,907
115,899

21,89420,50078,661
119,038

21,89420,50480,533
120,932+4+1,872+1,894

Total net assets

115,810

119,010

120,869+1,859Total liabilities and net
assets

210,442

212,461

231,141+18,680

Figures in the table are rounded down

Change:End-FY4/23 2Q compared with End-FY4/22

Total current liabilities
Long-term debt

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

7

Consolidated C/FCash and cash equivalents at the end of the period decreased ¥14,918 million from the previous
year due to decrease of net cash used in investing activities by ¥10,356 million resulting from alarge M&A transaction, but the company maintained ample cash.
(¥ million)

FY4/22 2Q

FY4/23 2Q

Change17,3148,457(8,857)

Profit before income taxes

6,064

7,165

+1,101

Depreciation and amortization

2,117

2,567

+450

Amortization of goodwill

2,055

2,115

+60

(Increase) decrease in accounts receivable

4,245

1,694

(2,551)(Increase) decrease in inventories(1,707)(4,890)(3,183)(Increase) decrease in other accounts receivable(1,316)(1,659)

(343)

3,983

5,255

+1,272(8,261)(18,617)(10,356)(3,590)(5,680)(2,090)(2,223)(14,602)(12,379)

Net cash used in financing activities(5,630)(5,794)(164)

Net increase (decrease) in cash and cash
equivalents

3,422(15,955)(19,377)

58,43243,514(14,918)

Net cash provided by operating activities

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

Cash and cash equivalents at end of the year
Figures in the table are rounded down
© 2022 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)

FY4/22 2Q

55.0
112.3
35.43
94.68
2.05
3,285.58
1.6
2.9
9,949
19.17
(0.42)
48,529239,434
236,375

FY4/22

56.0
96.6
28.99
201.471.74
3,385.51
3.4
6.0
24,065
6.54(0.43)
51,030208,305
205,143

FY4/23 2Q

52.3
95.0
28.86
108.301.83
3,438.38
1.7
3.2
11,46716.60(0.27)
32,608
222,986
219,562

Change(2.7)(17.3)(6.57)+13.62(0.22)+152.8+0.1+0.3+1,518(2.57)+0.15(15,921)(16,448)(16,813)

Figures in the table are rounded down
Change︓FY4/23 2Q compared with FY4/22 2Q
Net D/E ratio = (Interest-bearing debt – Cash on hand and in banks) / Shareholdersʼ equity
Net cash = Cash on hand and in banks – Interest-bearing debt
Shareholdersʼ value = EV – Net interest-bearing debt
Market capitalization︓Treasury stock is excepted
Share prices used to calculate market capitalization:
End-FY4/22 2Q ¥6,710 (End-Oct,2021), End-FY4/22 ¥5,840 (End-Apr,2022), End-FY4/23 2Q ¥6,250 (End-Oct,2022).
© 2022 AIN HOLDINGS INC. All Rights Reserved.

9

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 per
share(¥)

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(%)

16.2
10.7
5.5
5.6

+5.00

+9.1

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

10

Review© 2022 AIN HOLDINGS INC. All Rights Reserved.

11

Daily new COVID-19 cases across Japan
As of December 7, the number of domestic cases of the COVID-19 infection and deaths
was 25,554,733 and 50,819, respectively.
（people）
300,000

7th waveAug.2
263,535

250,000
200,000

Declaration of thestate of emergency

Declaration of thestate of emergency

Apr.7→
May 25Jan.8→ Apr.25→ Jul.12→
Mar.21 Jun.20
Sep.30Pre-emergency
measuresJan.7→
Mar.21150,000

6th waveFeb.1
103,701

100,000
50,0000

3rd wave
Jan.8
8,045

4
4

5th waveAug.2025,975

2nd wave
Aug.7
1,597

1st waveApr.10
640

2/20
20/2

4th wave
May 12
7,059

66

8
8

10
10

Dec. 7
149,383
12
12

2/21
21/2

4
4

66

8
8

10
10

12
12

2/22
22/2

4
4

66

8
8

10
10

12 （m/y）12

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.

12

Review (YoY)
Ordinary profit increased ¥1.1 billion due to increase of net sales in both dispensing pharmacy
and cosmetic and drug store businesses.
Net sales+¥18.2 billion¥171.2 billion +11.9%¥153.0 billion■Dispensing
Pharmacy+¥16.3 billion
Dispensing
Dispensing
Pharmacy¥136.9 billion

Pharmacy¥153.2 billion■Cosmetic andDrug store+¥2.4 billion■Retail shop,
OthersCosmetic and Drug Cosmetic and Drug¥(0.5) billion
Store ¥9.8 billion Store ¥12.2 billion
Others ¥6.3 billion Others ¥5.8 billion

FY4/222Q

FY4/232Q© 2022 AIN HOLDINGS INC. All Rights Reserved.

Ordinary profit¥6.1 billion
Dispensing
Pharmacy¥10.4 billion+¥1.1 billion¥7.2 billion
Dispensing
Pharmacy¥10.7 billion
Cosmetic andDrug Store¥0.3 billion

Others ¥(0.1) billion
Cosmetic and Drug Administrative
Store ¥(1.1) billion
expenseAdministrative¥(3.8) billion
expense¥(3.1) billion

FY4/22
2Q+18.9%■Dispensing
Pharmacy
Gross profit+¥0.3 billion■Cosmetic andDrug store, Others
Cost reform+¥1.5 billion

Administrative
expense,Others¥(0.7) billion

FY4/232Q
13

Review (vs Plan)
Net sales decrease ¥1.6 billion and ordinary profit ¥1.5 billion against the plan due tobelow-plan prescription volume.
Net sales¥172.8 billion

Dispensing
Pharmacy¥(1.6) billion¥171.2 billion (0.9)%

Dispensing
Pharmacy■Dispensing
Pharmacy¥(1.4) billion¥154.6 billion ¥153.2 billion■Retail shop,
Cosmetic and Drug Cosmetic and Drug Others
Store ¥12.2 billion Store ¥12.2 billion¥(0.2) billion
Others ¥6.0 billion Others ¥5.8 billion
FY4/23 2Q
Plan

FY4/23 2Q
Result© 2022 AIN HOLDINGS INC. All Rights Reserved.

Ordinary profit¥8.7 billion¥(1.5) billion(16.6)%¥7.2 billion■Dispensing
Pharmacy

Dispensing
Pharmacy

Dispensing
Pharmacy¥13.0 billion¥10.7 billion ■Cosmetic and¥(2.3) billion

Drug store, Others

Cosmetic and
Cosmetic andDrug Store
Drug Store¥0.3 billion¥(0.1) billion
Others¥(0.1) billion Administrative
expenseAdministrative¥(3.8) billion
expense¥(4.1) billion

FY4/23 2Q
Plan

Gross profit

Cost reform+¥0.5 billion
Administrative
expense,Others +¥0.3 billion

FY4/23 2Q
Result14

Strategy© 2022 AIN HOLDINGS INC. All Rights Reserved.

15

Strategy
Expansion of top-line■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 500 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.

16

Expansion of top-line■Dispensing Pharmacy

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

■Cosmetic and Drug Store

Plan to open 10 stores■ Top-line¥316.2 billion +14.8% ¥363.0 billion■Dispensing Pharmacy■Cosmetic and Drug store■Others

Net sales

400.0¥326.0 billion¥24.7 billion¥12.3 billion¥153.2 billion¥12.2 billion¥5.8 billion

300.0
200.0
100.0
0.0
(¥billion)■ ProfitOrdinary profit¥283.1 billion¥20.5 billion¥12.6 billion¥171.2 billion

283.1

326.0

20.5

24.7

FY4/22¥16.0 billion +27.8% ¥20.5 billion■Dispensing Pharmacy■Cosmetic and Drug store■Others■Administrative cost

30.0
20.0
10.0
0.0
-10.0

(¥billion)

FY4/23 Plan

25.0
-1.7
-7.2

FY4/22© 2022 AIN HOLDINGS INC. All Rights Reserved.

¥25.0 billion¥(1.7) billion¥(0.1) billion¥(7.2) billion¥29.3 billion¥0.1 billion¥(0.2) billion¥(8.7) billion

29.3
0.1
-8.7

FY4/23 Plan

153.2
12.2

FY4/23 2Q¥7.2 billion¥10.7 billion¥0.3 billion¥0.0 billion¥(3.8) billion

10.7
0.3
-3.8

FY4/23 2Q
17

Expansion of top-line■Dispensing Pharmacy

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

■Cosmetic and Drug Store

Plan to open 10 stores

FY4/23 2Q Results

FY4/23 Plan

Dispensing
Pharmacies
Cosmetic andDrug stores

Dispensing
Pharmacies
Cosmetic andDrug stores

1,287

1,209
78

162
2

66
7

:Dispensing Pharmacies

1,332

138
8

109
17
1,249
83

108
2

166
1
460
41

︓Cosmetic and Drug stores© 2022 AIN HOLDINGS INC. All Rights Reserved.

18

Expansion of top-line■Dispensing Pharmacy

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

■Cosmetic and Drug Store

Plan to open 10 stores■ PlanFY4/23

FY4/23 2Q

Opening

Plan

Plan
160

Dispensing Pharmacy

121

124

Organic

13

12

M&A

108

112

5

4

126

128

7
2

14
4

10
5

9

18

15

Cosmetic and drug store
Total
Dispensing Pharmacy
Cosmetic and drug store

ClosureResults

Total

48
112
10
170

■ 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 2Q

27

25

23

14

15

25

12

182
5.50
24
2
1,066

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

112
6.79
14
6
1,209

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

19

Recruiting and training of human resources■Planning to hire 500 newly graduated pharmacists（hired 660 new pharmacists in FY4/22）■Make the Field Manager system more established■Training of human resources

In April 2022, new 660 pharmacists has joined our group. We aim to hire 500 pharmacists,
in fiscal 2023. As of October 30, 2022, the group has 6,005 pharmacists out of 13,523
employees.
（people）（people）

No. of graduates hired

600

Pharmacists
No.of student applications
4,099

4,547

Medical support staff
4,742

5,004

5,230

6,000
5,000
4,000

400

3,000
560

200
257

163

660

613
215

2,000

500
240

213

0

306

No. of student applications

800

1,000
0

2019

© 2022 AIN HOLDINGS INC. All Rights Reserved.

2020

2021

2022

2023（Plan） （Year）

20

Reinforcing the Groupʼs business base
■Improving the customer services by promoting DX, such as official apps
■Promoting Sustainability 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© 2022 AIN HOLDINGS INC. All Rights Reserved.

21

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

In order to realize a sustainable society, it is important to work not only within the Group but
also throughout the entire supply chain. we are promoting "CSR procurement" as one of ourinitiatives.
November 1, 2022, We formulated and disclosed
the "AIN Group CSR Procurement Policy andGuidelines" by resolution of the Board of Directors.
6.Cooperate with local
communities and businesses

We will promote awareness of the guidelines
within our group and among our suppliers, andwork together to promote sustainability activities.

Promoting a healthy society andsustainability activities with local
communities and supply chains© 2022 AIN HOLDINGS INC. All Rights Reserved.

22

Turnaround and expansion of AINZ&TULPE■Opening stores in prime locations and optimizing costs

AINZ & TULPE
Already opened in FY4/23

4

storesSTELLAR PLACE Sapporo(Opened in October 2022)

KOBE MOTOMACHI(Opened in June 2022)

MOSAICMALL Kohoku(Opened in May 2022)© 2022 AIN HOLDINGS INC. All Rights Reserved.

FUTAKO TAMAGAWA RISE
(Opened in October 2022)
23

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 per
share(¥)

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(%)

16.2
10.7
5.5
5.6

+5.00

+9.1

Figures in the table are rounded down
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24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/
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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.

25