FY4/20
IR PRESENTATION

June 2020

Results Overview© 2020 AIN HOLDINGS INC. All Rights Reserved.

1

Consolidated P/L
Net sales increased 6.2% YoY and decreased 0.2% against the plan due to the impact of the COVID-19
outbreak, despite the contribution of 35 stores opened(including M&A) in this fiscal year and store opened
in previous year. Ordinary income up 1.1% YoY and declined 2.2% against the plan due to net sales lower
than forecast.
YoY
FY4/19FY4/20FY4/20YoY
Vs planchange(%)(%)(¥ million)
resultsplan
resultschangeNet sales
Gross profit% of net sales

SG&A expenses% of net sales

Operating income% of net sales

Ordinary income% of net sales

Profit attributable toowners of parent

275,596 293,230 292,615 +17,019
45,36347,68046,861 +1,498

+6.2

(0.2)

+3.3

(1.7)

16.5

16.3

29,29531,18030,793+1,498

+5.1

(1.2)

16,067

16,50016,068

+1

+0.0

(2.6)

16,637

17,20016,822

+185

+1.1

(2.2)

9,029

9,250

9,179

+150

+1.7

(0.8)

254.87261.10259.11

+4.24

+1.7

(0.8)

10.6

5.8
6.0
3.3

% of net sales

Earnings per
share(¥)

10.6

5.6
5.9
3.2

16.0
10.5

5.5
5.7
3.1

Figures in the table are rounded down
© 2020 AIN HOLDINGS INC. All Rights Reserved.

2

Dispensing Pharmacy Business (Consolidated)
Net sales increased 7.7% YoY and 0.0% against the plan due to the full contribution of stores opened inprevious year and increase in average prescription price. Segment income up 13.7% YoY and declined
1.9% against the plan due to the impact of the COVID-19 outbreak.
(¥ million)

FY4/19results

FY4/20plan

FY4/20results

YoYchangeYoYchange(%)

Vs plan(%)

245,003 263,760
32,741 35,640

263,750 +18,747
34,960 +2,219

+7.7

（0.0)

+6.8

(1.9)

SG&A expenses

14,882

14,94014,664

(1.5)

(1.8)

Operating income

17,85920,70020,295 +2,436 +13.6(2.0)

Segment income

18,331

21,25020,850 +2,519 +13.7

(1.9)

1,132

1,089

1,088

(0.1)

Net sales
Gross profit% of net sales% of net sales% of net sales% of net sales

13.4

6.1

Number ofpharmacies

7.3
7.5

13.5

5.7
7.8
8.1

13.3

5.6

(218)

7.7
7.9

(44)

(3.9)

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the consolidated statements of income
Prescription volume: +1.7% YoY
Average prescription price: +5.8% YoY© 2020 AIN HOLDINGS INC. All Rights Reserved.

3

Cosmetic and Drug Store Business (Consolidated)
Net sales declining 2.0% YoY and 2.8% against the plan due to temporarily closed or shorted opening hours
at many stores, despite the group has opened 15 stores in this fiscal year. Segment income decreased
73.0% YoY and 12.7% against the plan due to net sales lower than plan.
(¥ million)

Net sales
Gross profit% of net sales

FY4/19results

25,2109,535
37.8

FY4/20plan

25,4009,980
39.3

FY4/20results

YoYchangeYoYchange(%)

Vs plan(%)

24,701
9,753

(509)

(2.0)

(2.8)

+218

+2.3

(2.3)

+964

+11.2

(1.4)

39.5

SG&A expenses

8,632

9,730

9,596

Operating income

903

250

157

(746) (82.6) (37.2)

Segment income

972

300

262

(710) (73.0) (12.7)

Number of stores

54

66

63

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

34.2
3.6
3.9

38.3
1.0
1.2

38.8
0.6
1.1

+9

+16.7

(4.5)

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the consolidated statements of income
Number of customers: +3.1% YoY
Average spending per customer: (4.7)% YoY© 2020 AIN HOLDINGS INC. All Rights Reserved.

4

Consolidated B/S
Net cash became ¥39,899million due to repayment of debts and shareholders’ equity ratio became 57.3%.
We are maintaining a sound financial structure.
(¥ million)(¥ million)

End-FY4/20

End-FY4/19
AssetsCurrent assets
Cash on hand andin banks

Fixed assets

AssetsLiabilities

85,446 Current liabilities
48,091

103,515

Short-term debt
Lease obligations

73,744

5,571
318

Long-term
liabilities

11,355

105,632

Short-term debt
Lease obligations

3,642
193

Long-term
liabilities

7,747

Long-term debt
Lease obligations

2,432
154

103,922

Deferred
assets15

Total net assets

111,003

189,021

Total assets

193,451

Total liabilities
and net assets

193,451

Long-term debt
Lease obligations

5,985
401

Deferred
assets59

Total net assets

189,021

Total liabilities
and net assets

Shareholders’ equity
ratio(%)

Fixed assets

46,321

74,70042,12345,249Net cashCash on hand andin banks

87,802 Current liabilities

Goodwill

Goodwill

Total assets

Current assets

Liabilities

35,81454.9

Net cash
Shareholders’ equity
ratio(%)

39,89957.3

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)© 2020 AIN HOLDINGS INC. All Rights Reserved.

5

Assets
The balance of total assets increased ¥4,430 million from the end of the previous fiscal year due to newstore openings and M&A.
(¥ million)

End-FY4/18

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

Figures in the table are rounded down

End-FY4/19

End-FY4/20

Change63,77910,466
9,580
94,557
14,934
10,041
824

48,091
12,771
12,89885,446
16,352
10,394571

46,321
13,653
15,32287,802
16,60910,960272（1,770)+882+2,424+2,356
+257
+566
(299)

27,85330,18630,874+688

38,011
11
40,132
2,375
3,772
11,33945,2497
47,577
1,795
4,284
15,13342,123
5
44,916
2,295
4,211
19,144(3,126)(2)(2,661)+500(73)+4,011

20,73225,751

29,841+4,09088,718103
183,380

103,51559
189,021

105,632
15
193,451+2,117(44)+4,430

M&A
New store
openings

Change:End-FY4/20 compared with End-FY4/19

Capital expenditures (Property, plant and equipment and intangible fixed assets + Deposits and guarantees) totaled ¥10,536 million© 2020 AIN HOLDINGS INC. All Rights Reserved.

6

Liabilities and Net Assets
The balance of liabilities decreased ¥2,652 million from the end of the previous fiscal year due to therepayment of debts etc.
(¥ million)

End-FY4/18

38,728
6,717
443

Accounts payable
Short-term debt
Lease obligations

44,794
5,571
318

End-FY4/20

Change47,1873,642
193+2,393(1,929)
(125)

2,432
154

(3,553)(247)

69,95073,74474,70016,696
86,646

11,35585,0997,747
82,447(3,608)(2,652)

96,662
96,733103,920
103,922

111,151
111,003+7,231+7,081

183,380

189,021

193,451+4,430Total current liabilities

11,511
632

Long-term debt
Lease obligations
Total long-term liabilities
Total liabilities

21,89420,50054,268

Common stock
Capital surplus
Retained earnings
Total shareholders’ equity
Total net assets
Total liabilities and net
assets

End-FY4/19

5,985
401

21,89420,50061,526

21,89420,50068,758

Repaymentof debts+956+7,232

Figures in the table are rounded down
Change : End-FY4/20 compared with End-FY4/19© 2020 AIN HOLDINGS INC. All Rights Reserved.

7

Consolidated C/F
Operating activities was ¥17,747 million due to the promotion of new store opening especially focus
on large-scale store.
(¥ million)

FY4/19FY4/20Change14,78817,747+2,95915,624

15,930+306

Depreciation and amortization

3,903

4,087

+184

Amortization of goodwill

4,183

4,357

+174

843

(429)

(1,272)(2,054)(1,939)+115(Increase) decrease in other accounts receivable

(407)

(530)

(123)

Increase (decrease) in accounts payable

1,685

1,793

+108

(19,985)(11,474)+8,511(4,990)(6,378)(1,388)(13,246)(1,442)+11,804

Net cash provided by financing activities(10,681)(7,837)+2,844

Net increase in cash and cash equivalents(15,878)(1,564)+14,31447,49545,931(1,564)

Net cash provided by operating activities
Profit before income taxes(Increase) decrease in accounts receivable
Increase (decrease) in inventories

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
© 2020 AIN HOLDINGS INC. All Rights Reserved.

8

Business Value Analysis
FY4/18

FY4/19FY4/20ChangeNet cash (¥ million)

52.7
141.0
23.54
310.082.67
2,729.44
6.2
13.5
27,1567.90(0.46)
44,474

54.9
165.7
34.68
254.873.01
2,931.48
4.8
9.0
24,15411.52(0.34)
35,814

57.3
110.4
23.27
259.11
1.92
3,130.77
4.8
8.5
24,5137.11(0.36)
39,899+2.4(55.3)(11.41)+4.24(1.09)+199.29
0.0
(0.5)
+359
(4.41)(0.02)+4,085

Shareholders’ value (¥ million)

258,928

314,139214,258(99,881)Market capitalization (¥ million)

258,620

313,178

213,627(99,551)

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)

Figures in the table are rounded down
Change：FY4/20 compared with FY4/19
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-FY4/18 ¥7,300 (End-Apr,2018), End-FY4/19 ¥8,840 (End-Apr,2019), End-FY4/20 ¥6,030 (End-Apr,2020).
Net cash = Cash on hand and in banks – Interest-bearing debt (Long-and short-term debt + Lease obligations )© 2020 AIN HOLDINGS INC. All Rights Reserved.

9

FY4/21 Plan (Consolidated)
The group forecasts net sales for the fiscal year ending April 30, 2021 increase 6.3% and ordinary
income decrease 10.8% YoY by open new stores (50 dispensing pharmacies and 12 cosmetic anddrug stores).
（¥ million）

FY4/19results

FY4/20results

FY4/21plan

YoYchangeYoYchange (%)

275,596
45,363292,615
46,861

311,000 +18,385
51,070 +4,209

29,29530,79336,470 +5,677+18.4

16,067

16,06814,600 (1,468)(9.1)

16,637

16,822

15,000 (1,822)(10.8)

9,029

8,200

(979)

(10.7)% of net sales

3.3

9,179

Earnings per
share(¥)

254.87259.11231.46 (27.65)(10.7)

55.00

55.00

55.00

Net sales
Gross profit% of net sales

SG&A expenses% of net sales

Operating income% of net sales

Ordinary income% of net sales

Profit attributable toowners of parent

Annual dividend (¥)

16.5
10.6

5.8
6.0

Figures in the table are rounded down
© 2020 AIN HOLDINGS INC. All Rights Reserved.

16.0
10.5

5.5
5.7
3.1

16.4
11.7

4.7
4.8
2.6

-

+6.3
+9.0

0.0

YoY change :FY4/21 plan compared with FY4/20 results
10Review
Revision of 2020
Growth strategy© 2020 AIN HOLDINGS INC. All Rights Reserved.

11

Review© 2020 AIN HOLDINGS INC. All Rights Reserved.

12

Review（YoY）
Although the net sales increased due to the full contribution of stores opened in previous fiscal
year and new store openings, ordinary income increased 1.1% YoY, reflecting the impact of
COVID-19.
Net sales

Ordinary income¥292.6 billion¥275.5 billion
Dispensing
Pharmacy¥245.0 billion

Dispensing
Pharmacy+¥18.7 billion¥263.7 billion

Cosmetic andDrug Store¥25.2 billion

Cosmetic andDrug Store

Others ¥5.3 billion

Others ¥4.2 billion

FY4/19results

Store openedin last FY +¥18.4billion
Existing+¥4.0billion
storesNew+¥2.1billion
storesClosing¥(5.8)billion
stores¥24.7 billion

FY4/20results¥16.6 billion
Dispensing
Pharmacy¥18.3 billionNew+¥1.3billion
storesStores opened+¥0.8billion
Cosmetic andin last FY
Drug Store
Existing¥(2.0)billion
stores¥1.0 billion
Closing
Others ¥(0.2) billion¥(0.6)billion
storesAdministrative¥(0.5) billion
expense¥(2.5) billion

FY4/19results© 2020 AIN HOLDINGS INC. All Rights Reserved.

¥16.8 billion
Dispensing
Pharmacy¥20.8 billion

Cosmetic andDrug Store¥0.3 billion

Net sales +¥1.7billion
Costs¥(0.2)billion

SG&A¥(1.3)billion
expenses+¥0.2 billion

Others ¥(0.3) billion

Administrative
expense¥(4.0) billion

FY4/20results
13

Review（Vs plan）
Net sales and ordinary income not achieving the plan due to the impact of COVID-19 outbreak.

Net sales¥293.2 billion

Ordinary income

Dispensing
Pharmacy

Dispensing
Pharmacy¥263.7 billion¥263.7 billion

Cosmetic andDrug Store¥25.4 billion

Cosmetic andDrug Store

Others ¥4.1 billion

Others ¥4.2 billion

FY4/20plan¥17.2 billion¥292.6 billion¥24.7 billion

FY4/20results© 2020 AIN HOLDINGS INC. All Rights Reserved.

Store openedin last FY +¥0.1billion
Existing¥(0.1)billion
stores±¥0 billion
New
stores¥(0.5)billion
Existing
stores¥(0.3)billionStore
opened+¥0.1billion
in last FY¥(0.7) billion

Dispensing
Pharmacy¥21.2 billion¥16.8 billion

Dispensing
Pharmacy¥20.8 billion

Net sales ¥(0.2)billion
costs

Cosmetic andDrug Store¥0.3 billion

Cosmetic andDrug Store¥0.3 billion

Others ¥(0.3) billion

Others ¥(0.3) billion

Administrative
expense¥(4.0) billion

Administrative
expense¥(4.0) billion

FY4/20plan

FY4/20results¥(0.6)billion

SG&A+¥0.4billion
expenses¥(0.4) billion

14

Revision of 2020

© 2020 AIN HOLDINGS INC. All Rights Reserved.

15

Transition of dispensing fee revision(¥million)

0.0 07250,000

Non-hospital
dispensing ratio(%)

Dispensing pharmacy
market (¥trillion)

0.0 08Dispensing
pharmacy sales(¥million)
80. 0%

2010
63.1%● 2003: AIN PHARMACIEZ became largest
dispensing pharmacy company in Japan●1994: Promoting non-hospital
dispensing system was started●1956: Law creating non-hospital
dispensing system was enacted

2018
74.0%
¥7.5 trillion

Segment income

70. 0%

20,000●2019: consumption
tax raised to 10%
60. 0%

0.0 06

調
Dispensing
剤
Pharmacy売
net sales
上高200,000
0.0 05150,000
100,000●1996: Forecasted non-hospital dispensing ratio
would be 60%●1997: consumption tax raised to 5%●1886: Standard number of hospital bed system
was introduced (regulation of No. of bed)
●1989: 3% consumption tax was introduced

1997
26.0%

1993
・Non-hospital dispensing
ratio15.8%
・Market ¥0.85 trillion

0.0 030.0 02056

No. of pharmacies
Revision ratio on medical
treatment feesYear(%)
Revision ratio on dispensing fees(%)
Revision ratio on drug prices (%)(Drug prices base)
Basic dispensing fee
1972(New) 1990
31pts
8 points

56
-

92
92
-

93
93
1

94
94

+5.0

+3.3

2008
Dispensing
pharmacy sales¥101,876 million

+1.9

+2.0

▲8.1

▲6.6

1112

+1.5

+3.4 +1.25

+1.5

+1.9

▲1.3

±0

▲1.36

+0.38

+1.55

+1.38

+0.73

+0.49

+0.55 +0.41 +0.55+0.1+1.3 +1.15

+0.7

+0.8

▲1.3

±0

▲0.6

+0.17

+0.52

+0.46

+0.22

+0.17

+0.19 +0.12 +0.16-▲6.8 ▲3.0

▲6.0

▲2.65

▲7.77

▲7.48 ▲2.40
▲4.38
*5

*1

▲9.7

1996
1997 1998
1994(4 divisions)(2 divisions)
45 → 46 → 49 pts ：4,000 times or less
40 pts：5,000 times
and 70% or lessor less
33 pts：Over 5,000 times 40 → 41 → 44 pts ：Over 4,000 times
and 70% or less
35 → 36 → 39 pts ：4,000 times or lessand over 70%
20 → 20 → 21 pts ：Over 4,000 times
and over 70%

▲7.0

2004
(3 divisions)
49 pts39 pts21 pts

▲6.3

▲4.2

1990
11 pts1992
15 pts1994
21 pts1996
30 pts1997
32 pts

▲5.75

2012

2000
22 pts2002
17 pts2006
22 pts

10 pts：700 items
24-hour rotation support &30 pts：1,000 items
Home healthcare support
Open time
36 pts：Basic dispensing fee 41pts &Concentration ratio: 70% or less &24-hour own support &Home healthcare services (10 cases / year)2012
41 pts

560

616

14
13

15
14

18
19
20
17
18
19
881 1,066 1,029 1,132 1,088 Plan

754

16
15

*2

17
16

*4

*3

2016(1 division) 32pts

2014
12 pts：Basic dispensing fee 41pts &2008(2 divisions)2010(1 division)
30 pts30 pts35 pts: For the elderly
aged over 75

13
12

*4

2018
2016
(Additional division)(Additional division)
41pts：Except following
41pts：Except following
25pts：Over 4,000 times and over 70%
25pts：Over 4,000 times and over 70%
or over 2,000 times and over 85%
or over 4,000 times from specificor over 2,000 times and over 90%
hospital（Medical mall・Same HP)
or over 4,000 times from specific 20pts：Same group over 40,000 times
hospital
per month and over 85% orlease contract with medical
20pts：Same group over 40,000 times
institution
per month and over 95% or
15pts：Same group over 400,000 times
per month and over 85% orlease contract with medical
lease contract with medical
institution
institution

2010
Premiums for generic drug dispensing systems(Volume base)
2008
2006
6 pts：20-25%(Dispensing ratio) 13 pts：25-30%
Started promoting GE drugsby changing style of prescription 4 points：Over 30% 17 pts：Over 30%

Drug use history management and guidance fee (Instruction fee)
1986(New)
5 points

▲5.2

2008
2010
2014
2006
(2 divisions)
40 → 40 pts ：4,000 times or→
41 pts：Except following
42
less 70% or less
18 → 24 pts：over 4,000 times→
25 pts：Over 4,000 times and19over 70% or
and over 70%
over 2,500 times andover 90%

2002
1998
Standards for dispensing system premiums(2 divisions)1992 1994 1996(Additional condition)
1990(New)
10 pts：Stock 500 items
In
case
of
over
600
times:
12 pts 14 pts 20 pts
9 points
30 pts：Stock 700 items
70% or lessConcentration ratio: 70% or less
Stock 500 items
Conduct of training
License to sell narcotic drugs
Concentration ratio
Services for after-hours: 90% or less(Multiple pharmacies approved)

Basic
dispensing
fee

▲6.7

10pts：Same premises and over 95%

Basic dispensing fee 41pts &Inventory 1,200 items & Home
healthcare services (1 case / year) &Notification of primary carepharmacists & Supervising
pharmacists having operational
experience
for at least 5 years and enrollment for
at least 1 year

Premiums for community
support systems
2018(New) 35pts

Basic dispensing fee 1 :Follow the standards for dispensing system
premiums
Other than ① : 8 items
considerable achievements/pharmacist

2016(New) 70 points

No. of basic dispensing fee is equal to No. ofmonthly average receptions of prescriptions
The income before FY 2008
is operating income

2018

Consent from patients,
pharmacists having operational
experience for at least 3 years
and enrollment for at least a half year

Drug management instruction fee for home medical care patients
2008
1996
1994(New)2002
350 pts： Resident in same facility / house
550 pts
550 points
500 pts： Up to once a month
500 pts： Except the above(Up to 2 times a month) 300 pts： After 2 times to 4 times(Up to once a month)(Up to 4 times a month)

Premiums by revisions are excerpted from Japan
Pharmaceutical Association

Including the correspondence to consumption tax(※1:+1.4%、※2：+0.18%、※3:+2.99%)※4:Except
adjustment
the role of pharmacies
near hospitals©the2020
AINforHOLDINGS
INC.located
All Rights
Reserved.

※5:Drug price revision along with consumption tax raising in October 2019

Drug information provision fee (for patient medication notebook)2006(1 division)
2004
2000(New)
15 pts17 pts15 points：Issue of notebooks
Drug information is
10 points：Provision of drug information 10 pts

integrated into instruction fee(once a month)

Premiums for special instruction
2000(New)2002
20 points
30 pts

2012

2014

2016

2010(1 division)
15 pts2012
Integrated into
instruction fee

Within 16㎞
in principle

2008(2 divisions)
15 pts300 pts
300 pts
650 pts
650 pts(Up to 5 times a day (Up to 40 times a week
per a pharmacist )per a pharmacist)(Excluding the elderly (including the elderly
aged over 75)
aged over 75)

2006
22 pts2008

Integrated into
instruction fee

2010 (New)
4 points

2016
10 pts

73pts

Consent from patients,
pharmacists having operational
experience for at least 3 years
and enrollment for at least 1 year

20. 0%

5,000

0
0.0 %

*5

2020(Additional division)
42pts：Except following
26pts：Over 4,000 times and over 70%

or over 1,800 times and over 95%
or over 2,000 times and over 85%
or over 4,000 times from specifichospital（Medical mall・Same HP)
21pts：Same group over 35,000 times
per month and over 95% orSame group over 40,000 times
per month and over 85% orlease contract with medical institution
16pts：Same group over 400,000 times
per month and over 85% orlease contract with medical
institution
9pts：Same premises and over 70%

2020 38pts

Basic dispensing fee 1 : 4 out of 5
items considerable achievements
Other than ① : 8 out of 9 items
considerable achievements/pharmacist

2020
76pts

2018

290pts:Except following
320pts:Single building 2-9person
650pts:Single building 1person

Medication adjustment support addition
2018(New)125 points

Premiums for specific drug management instruction
2004
28 pts30. 0%

2016
2014
2018
2020
(New standards)
15 pts : 75-80%
5 pts：22-30%
18 pts: 75-80%
18 pts: 65-75%
18 pts: 55%
22 pts : 80-85%
15 pts：30-35%
22 pts: 80-85%
22 pts: Over 75%
22 pts: 65%
28 pts : Over 85%
19 pts：Over 35%
26 pts: Over 85%
2020
2014(2 divisions) 2016
2018(3 divisions)38
pts：Basic
dispensing
fee
41
pts,
43 pts: Handing over medication notebook,
41 pts
41 ptspatients’ visiting within 3 monthhanding over medication notebook, 53 pts
34 pts:13 pts : Handing over medication 57 pts
patients’ visiting within 6 month
No notebooks
notebook ratio 50% or less 13 pts
50 pts：Except the above
2012

Primary care pharmacists instruction fee

Pharmaceuticalmanagement fee

10,000

10. 0%

96
96 9797 9898 9999 00 00 01 01 02 02 03 03 04 04 05 05 06 06 07 07 08 08 09 0910 1011
34 39
48
58
75
92
148 148 193 218 247 356 375 397 448 494

11

95
95
29

2019
Dispensing
pharmacy net sales¥263,750 million●2002: Regulation of long-term prescriptions
was abolished

Dispensing pharmacy sales¥296 million0

50. 0%

Segment
income¥1.6 trillion

0.0 01

15,00040. 0%¥4.1 trillion¥2.7 trillion

50,000

Year

2000
39.5%

0.0 04●2014: consumption tax raised to 8%¥6.0 trillion

2004
53.8%

2018
10 pts2020(2 division)
125 pts
100 pts
2020(2 division)
10 pts16
100 pts

Dispensing Fee Revision of 2020
revision of 2018dispensing
feeCommunity
supportsystempremiums
GEpremiums
Internal
medicine
dispensing
feehistory

revision of 2020

Pts

41

42

Over 4,000 times & Over 70%
or Over 2,000 times & Over 85%
or Over 4,000 times from specific hospital

25

Over 4,000 times & Over 70%
or Over 2,000 times & Over 85%
or Over 1,800 times & Over 95%
or Over 4,000 times from specific hospital26

BDF 3 – ⅠSame group over 40,000 times / month & Over 85%
or lease contract with medical institution

20

Same group over 35,000 times / month & Over 95%
or Same group over 40,000 times / month & Over 85%
or lease contract with medical institution

21

BDF 3 – ⅡSame group over 400,000 times / month & Over 85% or lease
contract with medical institution

15
10

BDF 2

SpecialSame premises（lease contract） & Over 95%

BDF 1

Narcotic drug & Home healthcare services 1 times & Primarycare pharmacists

Other than
BDF 1

（Per pharmacists per year）
Night・Holiday addition 400 times ＆ Duplicate medication 40 times &Medication adjustment support addition 1 times & Homecare services 12
times & Medication information providing fee 60 times & Narcotic drug
guidance addition 10 times & Primary care pharmacists instruction fee 40
times & Outpatient medication support fee 12 times

75-80%
80-85%
Over 85%
Less than 14 days (less than 7 days; per day)Less than 14 days (more than 8 days; per day)15~21 days
22~30 days
More than 31 days
BDF１ & handing over medication notebook & visiting within 6 months

Drug use

Pts

Except following
or Regions with limited medical resources

BDF 1

Basic

Except following
or Regions with limited medical resources

Except above
Primary care pharmacists instruction fee

manageme

35
18
22
26
5
4
67
78
86
41
53
73

nt andguidance

Same premises（lease contract） & Over 70%
Narcotic drug & Home healthcare services 12 times & Primary care pharmacists &Medication information providing fee 12 times & Attending specialist Team meeting
1 times
4 out of 5 items（Per pharmacists per year）
Night・Holiday addition 400 times ＆ Duplicate medication 40 times & Medication adjustment
support addition 1 times & Homecare services 12 times & Medication information providing
fee 60 times & Narcotic drug 10 times & Primary care pharmacists instruction fee 40 times& Outpatient medication support fee 12 times & Attending specialist Team meeting 5times
9 out of 8 items

80-85%
Over 85%
Less than 7 days
8~14 days
15~21 days
22~30 days
More than 31 days
Handing over medication notebook & visiting within 3 months
Except above
Primary care pharmacists instruction fee（New）Evaluation of the cancer treatment
receive regimen from medical institutions ＆ provide drug guidance
submit report and others to doctor（New）Evaluation of the dispensing focused on services
Provide inhaled drugs guidance to asthmatic patients &provide feedback to medical institutions&

Anti-diabetic drug guidance & provide feedback to medical institutions(link with the Community support system premiums）

Main items of the revision of 2020
BDF +1 pts due to the consumption tax rate increased in Oct. 2019

16
9
38
15
22
28
28
55
64
77
86
43
57
76

75-80%

Suspension medication（only at the first time）

fee© 2020 AIN HOLDINGS INC. All Rights Reserved.

Same group over 400,000 times / month & Over 85% or lease contract with medical
institution

100
30
100
30
17

Responsive to revision of 2020
Object: 927 existing stores
 Community support system premiums

 Basic dispensing fee
1（42pts）

2（26pts）

3-Ⅱ（16pts）

SP.（9pts）

No Premiums

1,000

0

341
6

358
7

358
7

385
8

567
13

548
14

547
15

519
15

4/18

4/19

3/20

4/20（mm/yy）

StoresStores

1,000
500

500

Stores

500
0

126
314
218

287

303

315

670

640

624

612

4/18

4/19

3/20

4/20 （mm/yy）

 Transition of average of GE premiums
1(15pts)2(22pts)

342

482

279

269

126
180

218
88
139

4/18

4/19

3/20

（pts）
25.0

3(28pts)

505

GE averagepremiums

No Premiums

257

0 GE premiums

1,000Community support system premiums(38pts)

214
77
131

4/20 （mm/yy）

20.0
15.0

All

3 main subsidiaries

Other

22.2
18.9
17.8
15.7

14.8
12.2

3/18

4

10.0

20.9

15.8

17.7

1/19

4

1/20

Average of GE premiums per a reception© 2020 AIN HOLDINGS INC. All Rights Reserved.

4/20（mm/yy）

GE drugs share (volume)：81.7%（Av. of 2/20-4/20）

19

Growth strategy© 2020 AIN HOLDINGS INC. All Rights Reserved.

20

Growth Strategy
Considering the institutional changes and deregulation in future, the Group continues to open highpotential stores and reinforcing the Group’s business base.

■ Top-line
Expanding of business by active new store openings inprime location and by secure M&As
AIN Pharmacy DOKKYOIDAI■ Reinforcing the Group’s business base

To rebuild the Group’s business base by improve the operational
efficiency and logistics reform utilizing ICT and Group brandbuilding■ Recruiting and training human resources,

Strengthening the function of pharmacies

Recruiting activity and development of human resources
with the energy of the entire company, and enhancing
Primary Care and specialized functions■ Expansion of ainz & tulpe
Improve the ratio of original brands and margin by continuing toopen ainz & tulpe in the major urban area and by implementing
measures to raise brand visibility in urban markets© 2020 AIN HOLDINGS INC. All Rights Reserved.

ainz & tulpe HAKATA MARUI21

Top-line
The group opened 35 stores including M&A, and closed 70 stores during the FY4/20.
■ Total number of stores

1,151 (Dispensing pharmacy:1,088、Cosmetic and drug store:63)

Opening
ClosedFY4/21

FY4/20■ PlanPlan

Results

Plan

20(100)2050Organic

14(25)

14

28

M&A

6(75)

6

22

Cosmetic anddrug store

17(15)

15

12

Total

37(115)35

62

63(30)

64

18

5(5)

6

2

68(35)

70

20

Dispensing
Pharmacy

Dispensing

Pharmacy
Cosmetic anddrug store

Total() initial plan

■ Transition of dispensing pharmacies
Organic
M&A

EV/EBITDA ratio

ClosedSold

No. of total stores

Hokkaido
119
Koshinetsu
108
Chugoku,
Shikoku
92

Tohoku171

Hokuriku
25

Kyusyu, Okinawa
43

Kanto
380

Kinki
129

Tokai
84
End-FY4/20

FY4/12

FY4/13

FY4/14

FY4/15

FY4/16

FY4/17

FY4/18

FY4/19FY4/20

27

38

36

40

32

27

25

23

14

28
5.51

38
5.09

26
3.94

119
4.77

110
5.37

182
5.50

11
3.96

134
4.88

6
3.71

9
494

10
560

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

EV/EBITDA ratio=EV(Purchase price)/EBITDA(Operating income + Depreciation and amortization)© 2020 AIN HOLDINGS INC. All Rights Reserved.

22

M&A
During the period, new store openings through M&A was only 6 dispensing pharmacies and
EV/EBITDA ratio was 3.71 times due to the Group raised M&A criteria. Considering our M&A
criteria, we will concentrate on more reliable and large-scale cases.
■ M&A criteria
Our targets

M&A criteriaStore size

Private pharmacy:
Annual net sales
more than ¥200 million
Corporate pharmacy:
Annual net sales
more than ¥150 million

EV/EBITDAratio

5 - 7 times

ProfitContribute from next fiscal year

Risk

Onsite pharmacy
Compliance issues

Annual net sales
more than¥200 million

Dispensing
pharmacymarket¥7.5 trillion

Annual net sales
more than¥200 million¥3.0 trillion

Annual net sales
less than¥200 million¥4.5 trillion

Estimated by Recent trend of national dispensing
medical expenses(2019) from Ministry of Health,
Labor and Welfare© 2020 AIN HOLDINGS INC. All Rights Reserved.

23

Reinforcing the Group’s business baseWe aim to reinforcing the Group’s business base by actively investing in ICT, logistics, and Groupbrand building that will support our future growth.
Investment projects

Subject■ ICT・Logistics

Securing specialized
human resources
Collecting andutilizing data

Proactively hiring people with expertise in IT and logistics
Creating a company-wide database for accounting, KPI, human resources, store
sales, etc. to achieve faster decision making

Raising theoperating efficiency• Introduced 117 RPA robots, automation of routine work
• Streamlining various inquiries and accumulating know-how by introducing ITSM

Network, Security

Rebuilding the network systems and strengthening security to prepare for future
growthImproving thecustomer services

Utilizing ICT like app for improving customer satisfaction• Renewal of patient medication notebook app, etc.
• Launched official ainz & tulpe app and EC website as well as expand
merchandise lineup

Logistic reform

Building efficient and reliable logistics system according to group scale expanding• Running the Kasai logistic center of WSS• Started operation logistics center for retail business in the Kansai and Kanto area

■ PR
EnhancingGroup brand© 2020 AIN HOLDINGS INC. All Rights Reserved.

Group branding building for stakeholders, recruiting and business development• Launch a nationwide TV advertising campaign, for both business• Rebrand store’s signboards as “AIN Pharmacy”
24Recruiting of Pharmacists
In April 2020, new 560 pharmacists has joined our group. We aim to hire roughly the same
number in fiscal 2021 to prepare for new store openings including M&A.
■ The transition of No. of national examination passers and new qualified pharmacists in AIN Group2012（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

2013

2014

2015

2016

2017

2018

2019

2021
(Plan)

2020

189

251

251

229

375

307

279

257

560

550

8,641

8,929

7,312

9,044

11,488

9,479

9,584

10,194

9,958

-

2.5%

3.3%

3.2%

5.6%

-

（88.3%） （79.1%） （60.8%） （63.2%） （76.9%） （71.6%） （70.6%） （70.9%） （69.6％）

2.8%

2.2%

（5.7%）（7.0%）

3.4%（8.0%）（8.0%） （11.7%） （10.0%）

2.9%（8.0％）

（

2.5%
-

）

（

-

）

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
560

600
400
200
0

375
189
47

251
53

2012

2013

© 2020 AIN HOLDINGS INC. All Rights Reserved.

251

229

307

279

28

93

173

174

152

2014

2015

2016

2017

2018

550

257
277

2019

392

2020

500

2021

（Plan）

25

The function of pharmacies
In terms of functions such as promotion of GE use, home-based health care and primary careservices, which have been demanded by the country and patients, we have accumulated highachievements compared with pharmacies nationwide.
 Comparison of results (As of March 2020)
Basic dispensing fee
No. ofstores

１(42)

２(26)

OthersCommunity
supportsystempremiums

GE drugs share
Under
80%

(38)

58,995

Japan
%

AIN
Group

Over
80%

No. ofNo. ofHome-based
notification
health careof primaryOver 10caretimes perpharmacists
year

17,338 25,558 33,437 32,082 17,712

49,210

1,673

8,112

83.4

2.8

13.8

35.2

43.3

56.7

54.4

30.0

438

9

639

354

269

817

926

807

1,086

40.3

0.8

当社調べ %地域支援は基本料１の薬局数に対する構成比

58.8

80.8

24.8

75.2

85.3

74.3

The Group’s own research. % of community support system premiums is from the No. of stores that applicable to BDF 1.

Notification of primary care pharmacists
Japan

54.3

Japan

AIN Group

85.3

0

20

40

© 2020 AIN HOLDINGS INC. All Rights Reserved.

60

Home-based health care Over 10 times per year

80

100（%）

30.0

AIN Group

74.3
0

20

40

60

80（%）
26

FY4/21 Plan (Dispensing Pharmacy Business)
The group forecasts net sales for the fiscal year ending April 30, 2021 of 268,400 million, up 1.8%
year on year, Segment income of 20,860 million up 0.0% by open 50 pharmacies including M&A
and close 18 pharmacies.
FY4/19results

FY4/20results

FY4/21plan

Net sales

245,003

263,750

268,400 +4,650+1.8

Gross profit

32,741

34,96034,860

(100)

(0.3)

14,882

14,664

14,400

(264)

(1.8)

17,85920,295

20,460+165+0.8

18,331

20,85020,860

+10

+0.0

1,132

1,088

1,120

+32

+2.9

（¥ million）% of net sales

SG&A expenses% of net sales

Operating income% of net sales

Segment income% of net sales

Number of stores

13.4

6.1

7.3

7.5

Figures in the table are rounded down

© 2020 AIN HOLDINGS INC. All Rights Reserved.

13.3

5.6

7.7

7.9

YoY
changeYoYchange (%)

13.0

5.4

7.6

7.8

YoY change :FY4/21 plan compared with FY4/20 results

27

Expansion of ainz & tulpe①
Pole Town２（5/9/19）

ainz & tulpe
new store opening in FY4/20

15Stores

ASAKUSA ROX（21/6/19）
OMIYA ARCHE（25/10/19）
bono SAGAMIONO（30/5/19）

SENDAI PARCO 2（10/4/20）
KASHIWA Modi（13/9/19）
PERIE Chiba (25/7/19)

PERIE Kaihimmakuhari（30/10/19）

Daimaru Shimonoseki (20/3/20)
LINKS UMEDA (16/11/19)

Ginza INZ (8/11/19)

HAKATA MARUI (20/3/20)

SAKAE Central Park（11/10/19）© 2020 AIN HOLDINGS INC. All Rights Reserved.

KAWASAKI ZERO GATE（8/8/19）
BEAUTY FACTORYYOKOHAMA HAMMERHEAD（31/10/19）
28

Expansion of ainz & tulpe②
The number of ainz & tulpe point card has growing steadily. The group launched the official ainz &tulpe app, which can also manage points in October 2019 and an EC website in May 2020. We plan to
upgrade the online site with new functionality such as connectivity with the official app to increase thesales scale by adding new sales channels, as well as synergistic effect with physical stores.
■ The transition of No. of ainz & tulpe point card holders（,000）
6,000
3,000

4,232

3,282

5,916

5,083

Point card holder reachedroughly 6 million in
April 2020.

0
2014

2015

2016

2017

■ The official ainz & tulpe app
・point card functions
・coupons etc.

2018

2019

2020 （year）■ The official EC website ”ainz & tulpe WEB STORE”
・introducing original brand・new opening store
information etc.

To improve customer satisfaction by reducing sales opportunity loss and optimize
store inventory due to connectivity official app and EC website.
© 2020 AIN HOLDINGS INC. All Rights Reserved.

29

FY4/21 Plan (Cosmetic and Drug Store Business)
The group forecasts net sales for the fiscal year ending April 30, 2021 of 25,000 million, increase
1.2% year on year and Segment income of 110 million, decrease 58.0% year on year by open 12
new stores.
（¥ million）

FY4/19results

FY4/20results

FY4/21plan

YoYchangeNet sales

25,21024,701

25,000+299+1.2

Gross profit

9,535

9,753

9,700

(53)

(0.5)

8,632

9,596

9,600

+4

+0.0

903

157

100

(57) (36.3)

972

262

110

(152) (58.0)

54

63

73

+10

% of net sales

SG&A expenses% of net sales

37.8

Operating income% of net sales

Segment income% of net sales

Number of stores
Figures in the table are rounded down

© 2020 AIN HOLDINGS INC. All Rights Reserved.

34.2

3.6

3.9

39.5

38.8

0.6

1.1

38.8

38.4

0.4

0.4

YoY
change (%)+15.9

YoY change :FY4/21 plan compared with FY4/20 results30

FY4/21 Plan (Consolidated)
The group forecasts net sales for the fiscal year ending April 30, 2021 increase 6.3% and ordinary
income decrease 10.8% YoY by open new stores (50 dispensing pharmacies and 12 cosmetic anddrug stores).
（¥ million）

FY4/19results

FY4/20results

FY4/21plan

YoYchangeYoYchange (%)

275,596
45,363292,615
46,861

311,000 +18,385
51,070 +4,209

29,29530,79336,470 +5,677+18.4

16,067

16,06814,600 (1,468)(9.1)

16,637

16,822

15,000 (1,822)(10.8)

9,029

8,200

(979)

(10.7)% of net sales

3.3

9,179

Earnings per
share(¥)

254.87259.11231.46 (27.65)(10.7)

55.00

55.00

55.00

Net sales
Gross profit% of net sales

SG&A expenses% of net sales

Operating income% of net sales

Ordinary income% of net sales

Profit attributable toowners of parent

Annual dividend (¥)

16.5
10.6

5.8
6.0

Figures in the table are rounded down
© 2020 AIN HOLDINGS INC. All Rights Reserved.

16.0
10.5

5.5
5.7
3.1

16.4
11.7

4.7
4.8
2.6

-

+6.3
+9.0

0.0

YoY change :FY4/21 plan compared with FY4/20 results
31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.

© 2020 AIN HOLDINGS INC. All Rights Reserved.

32