FY4/20 3Q
IR PRESENTATIONMarch 2020

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

1

Consolidated P/L
Net sales increased 8.7% YoY and decreased 0.6% against the plan due to contribution of 26 stores
opened(including M&A) in this fiscal year and store opened in previous year. Ordinary income up 4.7%
YoY and declined 6.1% against the plan due to net sales lower than forecast and large-scale store opening
cost increase.
FY4/19 3Q
FY4/20 3Q
FY4/20 3Q
YoYYoYVs plan(¥ million)(%)
change change(%)
resultsplan
results

Netsales（単位：百万202,522

221,320

220,085 +17,563+8.7(0.6)

Gross profit

33,75337,18035,801+2,048+6.1(3.7)

21,84423,71023,353+1,509+6.9(1.5)

11,90913,47012,447+538+4.5(7.6)

12,425

13,86013,008+583+4.7(6.1)

6,781

7,110+329+4.9(3.0)% of net sales

3.3

7,330

Earnings pershare(¥)

191.41206.90200.71+9.3+4.9(3.0)円）% of net sales

SG&A expenses% of net sales

Operating income% of net salesOrdinary income% of net sales

Profit attributableto owners of parent

16.7
10.8
5.9
6.1

16.8
10.7
6.1
6.3

3.3

16.3
10.6
5.7
5.9

3.2

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

2

Dispensing Pharmacy Business (Consolidated)
Net sales increased 9.7% YoY and 0.1% against the plan due to the full contribution of stores opened inprevious year and increase in average prescription price. Segment income up 15.4% YoY and declined
4.6% against the plan due to the large pharmacies opening cost increase.
(¥ million)

FY4/19 3Q
results

Net sales

179,397

Gross profit

24,216% of net sales

SG&A expenses% of net sales

Operating income% of net sales

Segment income% of net sales

Number ofpharmacies

FY4/20 3Q
plan

YoY
changeYoYchange(%)

Vs plan(%)

196,753 +17,356

+9.7

+0.1

27,17026,248+2,032+8.4(3.4)

11,112

11,19011,115+3+0.0(0.7)

13,104

15,98015,133+2,029+15.5(5.3)

13,48816,32015,569+2,081+15.4(4.6)

1,083

1,163

1,101+18+1.7(5.3)

13.5
6.2
7.3
7.5

196,460

FY4/20 3Qresults

13.8
5.7
8.1
8.3

13.3
5.6
7.7
7.9

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the quarterly consolidated statements of income
Prescription volume: +5.5% YoY© 2020 AIN HOLDINGS INC. All Rights Reserved.

Average prescription price: +3.9% YoY

3

Cosmetic and Drug Store Business (Consolidated)
Net sales increased 6.0% YoY due to the full contribution of stores opened in previous year and decreased
4.9% against the plan due to inclement weather and effect of inbound demand. Segment income decreased
22.4% YoY and 35.9% against the plan due to the cost in advance for actively opening new store.
(¥ million)

FY4/19 3Q
results

Net sales

18,927Gross profit

7,085% of net sales

SG&A expenses% of net sales

FY4/20 3Q
plan

YoY
changeYoYchange(%)

Vs plan(%)

20,071+1,144+6.0(4.9)

8,060

7,828

+743

+10.5(2.9)

6,403

7,180

7,296+893+13.9+1.6682880

531(151)(22.1) (39.7)

741

897575(166)(22.4) (35.9)

526262+10+19.2

37.4

Operating income% of net sales

Segment income% of net sales

Number ofstores

33.8
3.6
3.9

21,100FY4/20 3Q
results

38.2

34.0
4.2
4.3

39.0

36.4
2.6
2.9

-Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the quarterly consolidated statements of income
Number of customers: +9.4% YoY
Average spending per customer: (2.7)% YoY© 2020 AIN HOLDINGS INC. All Rights Reserved.

4

Consolidated B/S
Net cash became ¥38,629million due to repayment of debts and shareholders’ equity ratio became 58.0%.
We are maintaining a sound financial structure.
(¥ million)(¥ million)

End-FY4/20 3Q

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

11,355103,290

Short-term debt
Lease obligations

4,196
221

Long-term
liabilities

8,262

Long-term debt
Lease obligations

3,009
218

103,922

Deferredassets

26Total net assets

109,074

189,021

Total assets

188,063

Total liabilities
and net assets

188,063

Long-term debt
Lease obligations

5,985
401

Deferredassets

59

Total net assets

189,021

Total liabilities
and net assets

Shareholders’ equity
ratio(%)

Fixed assets

46,27670,72642,07545,249Net cashCash on hand andin banks

84,746 Current liabilities

Goodwill

Goodwill

Total assets

Current assets

Liabilities

35,81454.9

Net cash
Shareholders’ equity
ratio(%)

38,62958.0

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)© 2020 AIN HOLDINGS INC. All Rights Reserved.

5

Assets
The balance of total assets decreased ¥958 million from the end of the previous fiscal year. Mainlyreflected an decrease in cash on hand and in banks and goodwill.
(¥ million)

End-FY4/19 3Q

End-FY4/19

End-FY4/20 3Q

Change53,494
11,172
12,72588,391
15,97810,368695

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

46,276
13,713
14,63784,746
16,705
11,039339(1,815)+942+1,739(700)+353+645(232)

29,66030,18631,028+842

40,13810
42,352
2,267
3,989
12,83245,2497
47,577
1,795
4,284
15,13342,075
6
44,767
2,466
4,272
15,713(3,174)(1)(2,810)
+671
(12)
+580

22,55325,751

27,494+1,743

Total assets

94,56770
183,029

103,51559
189,021103,29026
188,063

(225)
(33)
(958)

Figures in the table are rounded down

Change:End-FY4/20 3Q compared with End-FY4/19

Cash on hand and in banks
Notes and accounts receivableInventories

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 otherassets
Total fixed assets
Total deferred assets

Repaymentof debts

Capital expenditures (Property, plant and equipment and intangible fixed assets + Deposits and guarantees) totaled ¥5,749 million© 2020 AIN HOLDINGS INC. All Rights Reserved.

6

Liabilities and Net Assets
The balance of liabilities decreased ¥6,110 million from the end of the previous fiscal year due to therepayment of debts etc.
(¥ million)
Accounts payable

End-FY4/19 3Q
43,01644,79446,784+1,990

Short-term debt

6,935

5,571

4,196

(1,375)

Lease obligations

346

318

221(97)

69,23573,74470,726(3,018)Long-term debt

7,020

5,985

3,009

(2,976)

Lease obligations

495

401

218

(183)

Total long-term liabilities

12,118

11,355

8,262(3,093)

Total liabilities

81,35485,09978,989(6,110)Common stock

21,894

21,89421,894-

Capital surplus

20,50020,50020,500-Retained earnings

59,27861,526

66,689+5,163

Total shareholders’ equity

101,672

103,920

109,082+5,162

Total net assets

101,674

103,922

109,074+5,152

Total liabilities and netassets

183,029

189,021

188,063(958)

Total current liabilities

End-FY4/19

End-FY4/20 3Q

ChangeRepaymentof debts

Figures in the table are rounded down
Change : End-FY4/20 3Q compared with End-FY4/19© 2020 AIN HOLDINGS INC. All Rights Reserved.

7

Revised Plan

© 2020 AIN HOLDINGS INC. All Rights Reserved.

8FY4/20 Revised Plan (Consolidated)
The group has revise the forecast for the fiscal year ending April 30, 2020. Net sales increase 6.4%
and ordinary income increase 3.4% YoY due to tightening the criteria for M&A deals and aslowdown in consumer spending amid the COVID-19 outbreak, as well as large-scale store opening
cost increase.
FY4/20FY4/19FY4/20Vs original plan
YoYchange (%)
change (%)
results
revised plan
original plan（¥ million）

275,596
45,363

300,330
50,540293,230
47,680(2.4)+6.4(5.7)+5.1

29,29531,84031,180(2.1)+6.4

16,067

18,70016,500(11.8)+2.7

16,637

19,20017,200(10.4)

+3.4

9,029

9,250

% of net sales

3.3

10,130(8.7)+2.4

Earnings pershare(¥)

254.87285.94261.10

(8.7)

+2.4

55.00

55.00

55.00

0.0

0.0

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.

16.8
10.6
6.2
6.4

3.4

16.3
10.6
5.6
5.9

3.2

9

FY4/20 Revised Plan (Dispensing Pharmacy Business)（¥ million）

Net sales

245,003

266,850

263,760

(1.2)

+7.7

Gross profit

32,74137,02035,640

(3.7)

+8.9

14,882

15,17014,940

(1.5)

+0.4

17,85921,85020,700

(5.3)

+15.9

18,331

22,32021,250

(4.8)

+15.9

1,132

1,202

1,089(9.4)(3.8)% of net sales

SG&A expenses% of net sales

Operating income% of net salesSegment income% of net sales

Number of stores

FY4/20original plan

Vs original

FY4/19results

13.4
6.1
7.3
7.5

13.9
5.7
8.2
8.4

FY4/20
YoYplan changechange (%)
revised plan(%)

13.5
5.7
7.8
8.1

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the quarterly consolidated statements of income© 2020 AIN HOLDINGS INC. All Rights Reserved.

10

FY4/20 Revised Plan (Cosmetic and Drug Store Business)（¥ million）

FY4/19results

FY4/20original plan

Vs original

FY4/20YoY
plan changechange (%)
revised plan(%)

Net sales

25,21028,50025,400(10.9)+0.8

Gross profit

9,535

10,9309,980(8.7)+4.7

SG&A expenses

8,632

9,650

9,730

+0.8

+12.7

Operating income

903

1,280

250(80.5)(72.3)

Segment income

972

1,300

300(76.9)(69.1)

Number of stores

5464

66

+3.1

+22.2

% of net sales% of net sales

37.8% of net sales% of net sales

34.2
3.6
3.9

38.4

33.9
4.5
4.6

39.3

38.3
1.0
1.2

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the quarterly consolidated statements of income© 2020 AIN HOLDINGS INC. All Rights Reserved.

11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.

© 2020 AIN HOLDINGS INC. All Rights Reserved.

12