FY4/22 1Q
IR PRESENTATION

September 2021

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

1

Consolidated P/L
Net sales increased 5.0% YoY and 4.1% against the plan due to the contribution of existing stores,
despite the impact of the COVID-19. Ordinary profit increased 73.2% YoY and 41.6% against the plandue to increase of sales.

(¥ million)

FY4/21 1Q
results

Net sales

71,463Gross profit

9,819

SG&A expenses

FY4/22 1Q
plan72,029

FY4/22 1Q
results

YoYchange

YoYchange(%)

Vs plan(%)

75,011+3,548+5.0+4.1

10,885

11,060+1,241

+12.6

+1.6

8,655

9,010

8,448

(207)

(2.4)

(6.2)

Operating profit

1,164

1,875

2,611

+1,447 +124.3+39.3

Ordinary profit

1,654

2,022

2,864

+1,210

+73.2

+41.6

846

840

1,309

+463

+54.7

+55.8

% of net sales

1.2

1.2

1.7

Earnings pershare(¥)）

23.90

23.73

37.10

+13.20

+55.2

+56.3

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

Profit attributable toowners of parent

13.7
12.1
1.6
2.315.1
12.5
2.6
2.8

14.7
11.3
3.5
3.8Figures in the table are rounded down
© 2021 AIN HOLDINGS INC. All Rights Reserved.

2

Dispensing Pharmacy Business (Consolidated)
Net sales increased 6.3% YoY and 4.8% against the plan due to the recovery in prescription volume atexisting stores and the contribution of stores opened in previous year. Segment profit increased 41.1%
YoY and 18.7% against the plan due to increase of sales.
YoYchangeFY4/21 1Q
results

FY4/22 1Q
plan

FY4/22 1Q
results

Net sales

62,88866,828+3,940+6.3+4.8

Gross profit

6,661

63,787
7,713

8,138+1,477

+22.2

+5.5

3,537

3,706

3,396(141)

(4.0)

(8.4)

3,124

4,007

4,742+1,618

+51.8

+18.3

3,458

4,109

4,879

+1,421

+41.1

+18.7

1,081

1,078

1,074(7)

(0.6)

(0.4)

(¥ million)% of net sales

SG&A expenses% of net sales

Operating profit% of net sales

Segment profit% of net sales

Number ofpharmacies

10.6
5.6
5.0
5.5

12.1
5.8
6.3
6.4

12.2
5.1
7.1

YoY
change(%)

Vs plan(%)

7.3

Figures in the table are rounded down

© 2021 AIN HOLDINGS INC. All Rights Reserved.

3

Cosmetic and Drug Store Business (Consolidated)
Net sales up 17.9% YoY and 5.9% against the plan due to the contribution of existing stores andstores opened in previous year despite the impact of temporarily closed or shorted opening hours.
Segment loss was ¥503 million, ¥107 million above plan.
YoYchangeFY4/21 1Q
results

FY4/22 1Q
plan

FY4/22 1Q
results

Net sales

4,296

5,063+767+17.9+5.9

Gross profit

1,589

4,7801,748

1,701+112+7.0(2.7)

2,014

2,368

2,213+199+9.9(6.5)

(425)

(620)

(511)

(86)

--

(292)

(610)

(503)

(211)

--

64

70

70+6+9.4+0.0(¥ million)% of net sales

SG&A expenses% of net sales

Operating profit% of net sales

Segment profit% of net sales

37.0
46.9

Number of stores

-

36.6
49.5

-

33.6
43.7

-

YoY
change(%)

Vs plan(%)-

Figures in the table are rounded down

© 2021 AIN HOLDINGS INC. All Rights Reserved.

4

Consolidated B/S
Net cash became ¥42,617 million and shareholders’ equity ratio became 55.9%. We are
maintaining a sound financial structure even during the COVID-19 outbreak.
(¥ million)(¥ million)

End-FY4/22 1Q

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

Fixed assets

AssetsLiabilities

96,398 Current liabilities
55,271

107,264

Short-term debt
Lease obligations

74,1603,670
94Long-term
liabilities

13,664

108,722

Short-term debt
Lease obligations

3,354
77

Long-term
liabilities

12,962Long-term debt
Lease obligations

7,507
20115,837

Deferredassets-Total net assets

113,773

203,662

Total assets

203,552

Total liabilities
and net assets

203,552

43,171

Net cashLong-term debt
Lease obligations

8,297
37

Deferredassets-Total net assets

203,662

Total liabilities
and net assets

Shareholders’ equity
ratio(%)

Fixed assets

53,57676,816

39,07939,057

Net cashCash on hand andin banks

94,829 Current liabilities

Goodwill

Goodwill

Total assets

Current assets

Liabilities

56.8

Shareholders’ equity
ratio(%)

42,617
55.9

Figures in the table are rounded downNet 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(¥ million)

End-FY4/21 1Q

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 assetsTotal assets

Figures in the table are rounded down

42,128
12,204
15,58882,815
16,521
10,868208
30,80841,303
4
44,2992,296
4,196
19,15430,297
105,405
4
188,225

End-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 1Q

53,576
12,33815,18094,82916,345
9,976
74
30,11739,0791
42,788
2,638
4,633
21,31335,817
108,722
203,552

Change(1,695)(1,137)+895(1,569)+75(414)(26)(112)+22+122(59)+218+994+1,449+1,458(110)

Change:End-FY4/22 1Q compared with End-FY4/21

Capital expenditures (Property, plant and equipment and intangible fixed assets + Deposits and guarantees) totaled ¥2,571 million© 2021 AIN HOLDINGS INC. All Rights Reserved.

6

Liabilities and Net Assets(¥ million)

End-FY4/21 1Q

End-FY4/21

End-FY4/22 1Q

ChangeShort-term debt

45,3343,171

46,7583,670

49,0943,354+2,336(316)

Lease obligations

165

9477(17)70,99974,16076,816+2,656Long-term debt1,961

8,297

7,507

(790)

Lease obligations

111

3720(17)

7,318

13,664

12,962(702)

Total liabilities

78,31887,82589,778+1,953

Common stock

Total shareholders’ equity

21,89420,50067,656
110,050

21,89420,50073,506
115,899

21,89420,50072,878113,870(628)(2,029)Total net assets

109,907

115,837

113,773(2,064)

Total liabilities and net assets

188,225

203,662

203,552(110)

Accounts payable

Total current liabilities

Total long-term liabilities

Capital surplus
Retained earnings

Figures in the table are rounded down

© 2021 AIN HOLDINGS INC. All Rights Reserved.

Change:End-FY4/22 1Q compared with End-FY4/217

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.
YoYchange

FY4/20results

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 pershare(¥)

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

YoYchange(%)

4.9

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

8Review© 2021 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 1,511,373 and 16,154, respectively.
（people）
25,000Aug.2025,858

No. of daily positice cases

Paralympic

20,00015,00010,0005,000

0Aug.24－Sep.5
Olympic
Jul.23－Aug.8

Declaration ofthe state of emergency

Declaration of the state of emergency
Jan.8－Mar.21

Apr.7－May.25

Jan.87,844

566

767

878

Jul.12－May 12
7,057

Aug.7
1,595

Apr.10708

20/4
44/20 555

Apr.25－Jun.20

Sep. 1
20,031

989

1010911111012 1221/1
1/211112
21/1 222333

44 4 555 667

the Ministry of Health, Labour and Welfare's Open Data on the COVID-19

7 88 （m/y）
8（年/月）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.

10Review (YoY)
Ordinary profit increased ¥1.2 billion due to increase of sales in dispensing pharmacy business.

Net sales¥71.4 billion

Ordinary profit+¥3.6 billion+¥1.2 billion¥75.0 billion¥2.8 billion

Dispensing
Pharmacy

Dispensing
Pharmacy¥62.8 billion¥66.8 billion

Cosmetic andDrug Store

Cosmetic andDrug Store

Others ¥4.3 billion

Others ¥3.1 billion

FY4/21 1Q
results

FY4/22 1Q
results¥4.3 billion¥5.1 billion

Dispensing
Pharmacy+¥4.0 billion

Cosmetic andDrug store+¥0.8 billion
Retail shop,
Others¥(1.2)billion¥1.6 billion
Dispensing
Pharmacy¥3.4 billion
Cosmetic andDrug Store¥(0.3) billion

Others ¥(0.3) billion

Administrative
expense¥(1.2) billion

FY4/21 1Q
results© 2021 AIN HOLDINGS INC. All Rights Reserved.

DispensingPharmacy¥4.8 billion

Net sales
increased,Others+¥1.4 billion

Others ¥0.0 billion

Cosmetic andDrug Store¥(0.5) billion

Administrative
expense¥(1.5) billion

FY4/22 1Q
results

Investments
for system,
Others+¥0.2 billion

11Review (Vs plan)
Net sales achieved the plan due to the steady increase of the dispensing pharmacy business, andordinary profit increased ¥0.8 billion against the plan.

Net sales¥72.0 billion

Ordinary profit+¥3.0 billion+¥0.8 billion¥75.0 billion¥2.8 billion

Dispensing
Pharmacy

Dispensing
Pharmacy¥63.8 billion¥66.8 billion

Cosmetic andDrug Store

Cosmetic andDrug StoreOthers ¥3.4 billion

Others ¥3.1 billion

FY4/22 1Qplan

FY4/22 1Q
results¥4.8 billion¥5.1 billion© 2021 AIN HOLDINGS INC. All Rights Reserved.

Dispensing
Pharmacy¥2.0 billion+¥3.0 billion

Cosmetic andDrug store+¥0.3 billion
Retail shop,Others¥(0.3)billion

Dispensing
Pharmacy¥4.1 billion

Dispensing
Pharmacy¥4.8 billion

Others ¥0.0 billion

Others ¥0.0 billion¥(0.6) billion¥(0.5) billion

Cosmetic andDrug Store

Cosmetic andDrug Store

Administrative
expense¥(1.5) billion

Administrative
expense¥(1.5) billion

FY4/22 1Q
plan

FY4/22 1Q
results

Net sales
increased,
Others+¥0.7 billion

Cosmetic andDrug store,
Administrative
expense,Others¥(0.1) billion

12Top-line
The group opened 13 stores including M&A, and closed 3 stores during the FY4/22 1Q.
■ PlanFY4/22

FY4/22 1Q

ResultsPlanDispensing Pharmacy

161280Organic

5５40M&A

11７40

Cosmetic and drug store

1115Total

171395

Dispensing Pharmacy

33Cosmetic and drug store

0052Total

3371,078

1,074

1,140

Cosmetic and drug store

7070

Total no. of stores

1,148

1,144

■ Transition of dispensing pharmacies
FY4/14 FY4/15

FY4/16

FY4/17

FY4/18

FY4/19FY4/20FY4/21

FY4/21 1Q

ClosureOpening

Plan

Dispensing Pharmacy

Organic
M&A

EV/EBITDA ratio

ClosedSold

No. of total stores

82

1,222

Hokkaido123Koshinetsu
106
Chugoku,
Shikoku
92

Tohoku170

Hokuriku
24

Kyusyu, Okinawa
44

Kinki
128

Kanto
373
Tokai
84
End-FY4/22 1Q

36

40

32

2725

23

14

15

526
3.94

119
4.77

110
5.37

182
5.50

11
3.96

134
4.88

6
3.71

14
3.74

7
5.47

61616

21
1754

15
1881

24
2
1,066

73
32
1,029

54
30
1,132

64
42
1,088

52
34
1,065

3
1,074

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

13

Recruiting of Pharmacists
In April 2021, new 613 pharmacists has joined our group. We aim to hire roughly the same
number in fiscal 2022 to prepare for expansion of business scale by accelerating store openings.
■ The 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 inAIN Group2014

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%）（-）

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
0375251251

532820132014© 2021 AIN HOLDINGS INC. All Rights Reserved.

229

307

27993173

174

1522015

2016

2017

2018

560

613

392

405

350

2020

2021

2022 （year）

600

257
277

2019

（Plan）

14

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
results
planchange
Net sales

292,615

297,305

315,000 +17,695+6.0Gross 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 pershare(¥)

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
5.55.7

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.

15

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 forinformation 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.

16