FY4/20 1Q
IR PRESENTATION

September 2019

Results Overview© 2019 AIN HOLDINGS INC. All Rights Reserved.

1

Consolidated P/L
Net sales increased 11.5% year on year and 1.9% against the plan due to the steadily growth of storesthat opened in the previous fiscal year and existing stores. Ordinary income up 16.7% year on year
reflecting an increase in net sales, and 4.8% against the plan due to reduced costs in head office expense.
(¥ million)

FY4/19 1Q
results

FY4/20 1Q
plan71,140

FY4/20 1Q
results

YoYchangeYoYchange(%)

72,461+7,448+11.5+1.9

Vs plan(%)

Netsales（単位：百万65,013

Gross profit

10,687

11,59011,490+803+7.5(0.9)

SG&A expenses

7,236

7,700

7,568+332+4.6(1.7)

Operating income

3,450

3,890

3,921+471+13.7+0.8

Ordinary income

3,610

4,020

4,212+602+16.7+4.8

Profit attributableto owners of parent

1,851

2,240+389+21.0+6.7% of net sales

2.8

2,100

Earnings pershare(¥)

52.27

59.28

63.24+10.97+21.0+6.7円）% of net sales% of net sales% of net sales% of net sales

16.4
11.1
5.3
5.6

16.3
10.8
5.5
5.7

3.0

15.9

10.4
5.4

5.8

3.1

Figures in the table are rounded down
© 2019 AIN HOLDINGS INC. All Rights Reserved.

2

Dispensing Pharmacy Business (Consolidated)
Net sales increased 13.5% year on year and 3.1% against the plan due to the full contribution of stores
opened in the previous fiscal year and increasing of average prescription price. Segment income up
20.6% year on year with increasing of net sales, and declined 0.1% against the plan due to the excess of
SG&A expenses.
FY4/19 1Q
FY4/20 1Q
FY4/20 1Q
YoY
YoY
Vs plan(¥ million)(%)
change change(%)
resultsplan
results

Net sales

57,09062,88064,800+7,710+13.5+3.1

Gross profit

7,416

8,310

8,409+993+13.4+1.2

3,576

3,610

3,738+162+4.5+3.5

3,839

4,700

4,671+832+21.7(0.6)

3,984

4,810

4,804+820

+20.6

(0.1)

1,024

1,122

1,120+96+9.4(0.2)% of net sales

SG&A expenses% of net sales

Operating income% of net sales

Segment income% of net sales

Number ofpharmacies

13.0
6.3
6.7
7.0

13.2
5.7
7.5
7.6

13.0
5.8
7.2
7.4

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the consolidated statements of income
Prescription volume: +9.8% YoY© 2019 AIN HOLDINGS INC. All Rights Reserved.

Average prescription price: +3.4% YoY

3

Cosmetic and Drug Store Business (Consolidated)
Net sales increased 0.8% year on year and decreased 6.3% against the plan in spite of the contribution ofnew opening stores and stores opened in last year. Segment income decreased 36.8% year on year due tothe cost in advance for new opening stores, and 21.5% against the plan because of unachieved net sales.

(¥ million)

FY4/19 1Q
results

Net sales

6,505

Gross profit

2,403% of net sales

SG&A expenses% of net sales

FY4/20 1Q
plan

7,000

FY4/20 1Q
results

YoYchange

YoYchange(%)

Vs plan(%)

6,560+55+0.8(6.3)

2,620

2,495

+92+3.8(4.8)

2,057

2,330

2,277+220+10.7(2.3)

345

290

217(128)(37.1) (25.2)

364

293

230(134)(36.8) (21.5)485555+736.9

Operating income% of net sales

Segment income% of net sales

Number ofstores

31.6
5.3
5.6

37.4

33.3
4.1
4.2

38.0

34.7
3.3
3.5

+14.6

0.0

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the consolidated statements of income
Number of customers: +5.6% YoY
Average spending per customer: (4.5)% YoY© 2019 AIN HOLDINGS INC. All Rights Reserved.

4

Consolidated B/SNet cash was ¥30,077million and shareholders’ equity ratio became 55.8%. We are maintaining a soundfinancial structure.
(¥ million)(¥ million)

End-FY4/20 1Q

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

103,184

Short-term debt
Lease obligations

5,045
286

Long-term
liabilities

10,421Long-term debt
Lease obligations

5,014
330

103,922

Deferredassets

48

Total net assets

104,154

189,021

Total assets

186,543

Total liabilities
and net assets

186,543

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

40,75371,96744,21645,249Net cashCash on hand andin banks

83,311 Current liabilities

Goodwill

Goodwill

Total assets

Current assets

Liabilities

35,81454.9

Net cash
Shareholders’ equityratio(%)

30,077
55.8

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)© 2019 AIN HOLDINGS INC. All Rights Reserved.

5Assets
The balance of total assets decreased ¥2,478 million from the end of the previous fiscal year. Mainlyreflected an increase in accounts receivable and inventories against decreases in cash on hand and inbanks and goodwill.
(¥ million)

End-FY4/19 1Q

End-FY4/19

End-FY4/20 1Q

Change61,725
11,511
11,227
94,685
14,773
10,197733

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

40,753
15,94013,987
83,31116,355
10,484487(7,338)+3,169+1,089(2,135)+3+90(84)27,88430,18630,216+30

37,266
10
39,285
2,320
3,819
11,41445,2497
47,577
1,795
4,284
15,13344,216
6
46,6301,820
4,276
15,078(1,033)(1)(947)+25(8)(55)

20,71525,751

26,336+585

Total assets

87,885
92
182,663

103,51559
189,021103,184
48
186,543(331)(11)(2,478)Figures in the table are rounded down

Change:End-FY4/20 1Q compared with End-FY4/19

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 otherassets
Total fixed assets
Total deferred assets

Capital expenditures (Property, plant and equipment and intangible fixed assets + Deposits and guarantees) totaled ¥1,102 million© 2019 AIN HOLDINGS INC. All Rights Reserved.

6

Liabilities and Net Assets
The balance of liabilities decreased ¥2,710 million from the end of the previous fiscal year due to therepayment of debts etc.
(¥ million)

End-FY4/19 1Q

End-FY4/19

End-FY4/20 1Q

ChangeAccounts payable

41,64644,794

46,194+1,400

Short-term debt

7,486
399

5,571
318

5,045
286(526)(32)

Lease obligations
Total current liabilities
Long-term debt
Lease obligations
Total long-term liabilities
Total liabilities
Common stock
Capital surplus
Retained earnings
Total shareholders’ equity
Total net assets
Total liabilities and netassets

70,73973,74471,967(1,777)

15,10685,846

11,35585,09910,421
82,389(934)(2,710)96,743
96,816

103,920
103,922104,212104,154+292+232

182,663

189,021

186,543(2,478)10,052504

21,89420,50054,3495,985
401

21,89420,50061,5265,014
330

21,89420,50061,818

(971)
(71)

+292

Figures in the table are rounded down
Change : End-FY4/20 1Q compared with End-FY4/19© 2019 AIN HOLDINGS INC. All Rights Reserved.

7

FY4/20 Plan (Consolidated)
The group forecasts net sales for the fiscal year ending April 30, 2020 of 300,330 million, increase
9.0% year on year and ordinary income increase 15.4% year on year by open new stores (100dispensing pharmacies and 15 cosmetic and drug stores).
（¥ million）

FY4/18results

FY4/19results

FY4/20plan

YoYchangeYoYchange (%)

268,385
47,993

275,596
45,363

300,330 +24,734
50,540 +5,177

28,37029,29531,840+2,545+8.7

19,622

16,067

18,700+2,633+16.4

20,12916,637

19,200＋2,563+15.4

Profit attributable toowners of parent

10,567

10,130+1,101+12.2% of net sales

3.99,029

Earnings pershare(¥)

310.08254.87285.94+31.07

+12.2

50.00

55.00

55.00

-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

Annual dividend (¥)

17.9
10.6

7.3
7.5

Figures in the table are rounded down
© 2019 AIN HOLDINGS INC. All Rights Reserved.

16.5
10.6

5.8
6.0
3.3

16.8
10.6

6.2

+9.0
+11.4

6.4
3.4

YoY change :FY4/20 plan compared with FY4/19 results
81Q Review© 2019 AIN HOLDINGS INC. All Rights Reserved.

9

Review（YoY）
Net sales increased due to the expanding of existing dispensing pharmacies. Ordinary income increased
16.7% year on year, reflecting the increasing of net sales.

Net sales¥65.0 billion
Dispensing
Pharmacy¥57.1 billion

Ordinary income¥72.4 billion

Dispensing
Pharmacy¥64.8 billion

Cosmetic andDrug Store¥6.5 billion

Cosmetic andDrug Store¥6.5 billion

Others ¥1.4 billion

Others ¥1.1 billion

FY4/19 1Q
results

FY4/20 1Q
resultsStores opened+¥7.3billion
in last FYExisting+¥1.1billion
storesNew+¥0.1billion
storesClosing¥(0.8)billion
stores+¥7.7billion

Stores openedin last FY +¥0.39billion
New+¥0.07billion
storesExisting¥(0.28)billion
storesClosing¥(0.13)billion
stores+¥0.05 billion¥3.6 billion¥4.2 billion

Dispensing
Pharmacy

Dispensing
Pharmacy¥4.0 billion¥4.8 billion

Cosmetic andDrug Store¥0.3 billion
Others¥(0.1)billion

Head office
expense¥(0.6) billion

FY4/19 1Q
results© 2019 AIN HOLDINGS INC. All Rights Reserved.

Cosmetic andDrug Store¥0.2 billion

Net sales +¥1.2billion
Operation¥(0.4)billion
costs
SG&A

¥(0.2)billion+¥0.6 billion

Others¥(0.1)billion
Head office
expense¥(0.7) billion

FY4/20 1Q
results10

Review（Vs plan）
Net sales achieved the plan due to expanding of existing stores in the dispensing pharmacy business.
Ordinary income also achieved the plan due to sales increase and reduced costs in head office expense.

Ordinary income

Net sales¥71.1 billion¥72.4 billion

Dispensing
Pharmacy

Dispensing
Pharmacy¥62.9 billion¥64.8 billion

Cosmetic andDrug Store¥7.0 billion

Cosmetic andDrug Store

Others ¥1.2 billion

Others ¥1.1 billion

FY4/20 1Q
plan

FY4/20 1Q
results¥6.5 billion© 2019 AIN HOLDINGS INC. All Rights Reserved.

Existing+¥1.6billion
storesStoresopened in +¥0.2billion
last FY+¥0.1billion
Others+¥1.9 billion

Existing
storesClosing
stores¥(0.4)billion¥(0.1)billion¥(0.5) billion¥4.0 billion¥4.2 billion

Dispensing
Pharmacy

Dispensing
Pharmacy¥4.8 billion¥4.8billion

Cosmetic andDrug Store¥0.3 billion

Cosmetic andDrug Store¥0.2 billion

Others ¥(0.2) billion

Others ¥(0.1) billion

Head office
expense¥(0.9) billion

Head office
expense¥(0.7) billion

FY4/20 1Q
planFY4/20 1Q
resultsOperation¥(0.1)billion
costs
SG&A+¥0.3billion+¥0.2 billion

11Top-line
We plan to open 115 and close 35 stores, resulting in a total of 1,266 stores at the end of the FY4/20.
■ Total number of stores

1,175(Dispensing pharmacy:1,120、Cosmetic and drug store:55)

Opening
ClosedFY4/20FY4/20 1Q■ PlanPlan

ResultsPlan

55100

Organic

3325M&A2275

Cosmetic anddrug store

3315Total

88115

151730225171935

Dispensing
Pharmacy

Dispensing

Pharmacy
Cosmetic anddrug store

Total■ Transition of dispensing pharmacies
Organic
M&A

EV/EBITDA ratio

ClosedSold

No. of total stores

Hokkaido
121
Koshinetsu
111
Chugoku,
Shikoku
91

Tohoku173

Hokuriku
25

Kyusyu, Okinawa
42

Kanto
390
Tokai87

Kinki
135

End-FY4/20 1Q

FY4/12

FY4/13

FY4/14

FY4/15

FY4/16

FY4/17

FY4/18

27

38

36

40

32

27

25

23

328
5.51

38
5.09

26
3.94

119
4.77

110
5.37

182
5.50

113.96134
4.8823.44

9494

10560

61616

21
1754

15
1881

24
2
1,066

73
32
1,029

54
30
1,132

17
8
1,120

EV/EBITDA ratio=EV(Purchase price)/EBITDA(Operating income + Depreciation and amortization)© 2019 AIN HOLDINGS INC. All Rights Reserved.

FY4/19 FY4/20 1Q

12

Responsive to revision of 2018

Object: 960 existing stores

 Community support system premiums

 Basic dispensing fee
1(41pts)2(25pts)

3-Ⅱ(15pts)

S(10pts)

No premiums

500
0

1,000
350
6350
6366
7366
7591

591

573

573

131314

14

4/18

10

4/19

7StoresStores

1,000500

Community support system premiums(35pts)

262276291

304

698684669

656

4/18

104/1970（mm/yy）（mm/yy）

In general, change of classification once a year（April）

 GE premiums

Stores

1,000
5000

130
327
222

1(18pts)252
3282(22pts)

3(26pts)

355

378

286

282

281

157
223

130
189

129
171

4/18

104/197（points）
All
20.0
18.9
GE averagepremiums

No premiums

 Transition of GE premiums（mm/yy）

15.0

17.8
15.7

3 main subsidiaries

Other

19.5
18.8

15.8

16.6

14.8
12.2

10.0
3/1847101/19

47（mm/yy）© 2019 AIN HOLDINGS INC. All Rights Reserved.

Average of GE premiums per a reception
GE drugs share (volume)：80.7%（As of July 2019）13

FY4/20 Plan (Dispensing Pharmacy Business)
The group forecasts net sales for the fiscal year ending April 30, 2020 of 266,850 million, up 8.9%
year on year, Segment income of 22,320 million up 21.8% by open 100 new stores including M&Aand close 30 stores.
（¥ million）

Net sales
Gross profit% of net sales

FY4/18results

FY4/19results

FY4/20planYoYchangeYoYchange (%)

238,645 245,003 266,850 +21,847
36,030 32,741 37,020 +4,279+13.1

14,034

14,882

15,170+288+1.9

21,995

17,85921,850 +3,991+22.3

22,66818,331

22,320 +3,989

+21.8

1,029

1,132

1,202+6.2

SG&A expenses% of net sales

Operating income% of net sales

Segment income% of net sales

Number of stores

15.1

5.9
9.2
9.5

13.4

6.1
7.3
7.5

13.9

5.7
8.2
8.4

+70+8.9

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the quarterly consolidated statements of income© 2019 AIN HOLDINGS INC. All Rights Reserved.

14

Expansion of ainz & tulpe①
In this period, even though the decline in net sales of existing stores had an impact, gross profit
margin increased due to the strengthen merchandise lineups and overhaul of procurement activities.
The group will continue to increase profits by opening new stores and cost control.
■ Results review（¥ million）

FY4/19 1Q

FY4/20 1Q

YoY change

YoYchange(%)

Net sales

6,505

6,560+55+0.8

Existing Stores

6,335

6,058(277)(4.4)

Gross profit
margin36.9

38.0

Although net sales of existing
stores were below the previous
year due to temporary effects
such as inclement weather andinbound demand, it has been
recovered steady in and afterAugust.

■ ainz & tulpe bono SAGAMIONOOpenMay 30, 2019

Sales floor

258㎡

ＳＫＵ

10,000■ ainz & tulpe ASAKUSA ROX
Open

June 21, 2019

Sales floor

238㎡

ＳＫＵ

10,000© 2019 AIN HOLDINGS INC. All Rights Reserved.

15

Expansion of ainz & tulpe②
The plan for new store opening is all on schedule. We plan to continue opening stores in urban
retail facilities where has great abilities at attracting customers.
Sapporo Pole Town２（Scheduled to open in September）

OMIYA ARCHEimage

ASAKUSA ROX（Opened in June）
OMIYA ARCHE（Scheduled to open in October）

BEAUTY FACTORYYOKOHAMA HAMMERHEAD imageOsaka※Planning

Kyoto※Planningbono SAGAMIONO（Opened in May）

Kashiwa Modi
（Scheduled to open in September）
PERIE Kaihimmakuhari（Scheduled to open in October）
Chiba※PlanningPERIE Chiba（Opened in July）
Tokyo※PlanningFukuoka※Planning© 2019 AIN HOLDINGS INC. All Rights Reserved.

KAWASAKI ZERO GATESAKAE Central Park
BEAUTY FACTORY（Opened in August）（Scheduled to open in October）YOKOHAMA HAMMERHEAD（Scheduled to open in October）
16

FY4/20 Plan (Cosmetic and Drug Store Business)
The group forecasts net sales for the fiscal year ending April 30, 2020 of 28,500 million, increase
13.1% year on year and Segment income of 1,300 million, increase 33.7% year on year by open
15 new stores and close 5 stores.
（¥ million）

Net sales
Gross profit% of net sales

FY4/18results

24,1178,92537.0FY4/19
results

25,2109,535
37.8

FY4/20plan

YoYchangeYoYchange (%)

28,500 +3,290
10,930 +1,395+13.1

9,650 +1,018+11.8

38.4+14.6

SG&A expenses

8,317

8,632

Operating income

608

903

1,280+377+41.7

Segment income

657

972

1,300+328+33.7

Number of stores

4854

64+10+18.5% of net sales% of net sales% of net sales

34.5
2.5
2.7

34.2
3.6
3.9

33.9

4.5
4.6

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the consolidated statements of income© 2019 AIN HOLDINGS INC. All Rights Reserved.

17FY4/20 Plan (Consolidated)
The group forecasts net sales for the fiscal year ending April 30, 2020 of 300,330 million, increase
9.0% year on year and ordinary income increase 15.4% year on year by open new stores (100dispensing pharmacies and 15 Cosmetic and drug stores).
（¥ million）

FY4/18results

FY4/19results

FY4/20plan

YoYchangeYoYchange (%)

268,385
47,993

275,596
45,363

300,330 +24,734
50,540 +5,177

28,37029,29531,840+2,545+8.7

19,622

16,067

18,700+2,633+16.4

20,12916,637

19,200＋2,563+15.4

Profit attributable toowners of parent

10,567

10,130+1,101+12.2% of net sales

3.9

9,029

Earnings pershare(¥)

310.08254.87285.94+31.07

+12.2

50.00

55.00

55.00

-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

Annual dividend (¥)

17.9
10.6

7.3
7.5

Figures in the table are rounded down
© 2019 AIN HOLDINGS INC. All Rights Reserved.

16.5
10.65.86.0
3.3

16.8
10.6

6.2

+9.0
+11.4

6.4
3.4

YoY change :FY4/20 plan compared with FY4/19 results
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.

© 2019 AIN HOLDINGS INC. All Rights Reserved.

19