FY4/19
IR PRESENTATION

June 2019

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

1

Consolidated P/L
Net sales increased 2.7% year on year and increased 1.0% against the plan reflecting 164 new store
openings including M&A. Ordinary income declined 17.3% year on year and decreased 7.6% against theplan due to the dispensing fee revisions.
(¥ million)

FY4/18results

FY4/19plan

FY4/19results

YoYchangeYoYchange(%)

Vs plan
(%)

Net
sales
（単位：百万268,385

272,870

275,596+7,211+2.7+1.0

Gross profit

47,99348,04045,363(2,630)

(5.5)

(5.6)

28,37030,54029,295

+925

+3.3

(4.1)

19,622

17,50016,067(3,555)(18.1)(8.2)

20,12918,000

16,637(3,492)(17.3)(7.6)

Profit attributableto owners of parent

10,567

9,260

9,029

(1,538)(14.6)(2.5)

Earnings per
share(¥)

310.08261.38254.87(55.21)(17.8)(2.5)

円）% of net sales

SG&A expenses% of net sales

Operating income% of net sales

Ordinary income% of net sales

17.9
10.6
7.3
7.5

3.9

% of net sales

17.6
11.2
6.4
6.6

3.4

16.5
10.6
5.8
6.0

3.3

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

2

Dispensing Pharmacy Business (Consolidated)
Net sales increased 2.7% year on year and 2.2% against the plan due to the 157 new store openings,
including M&A. Segment income decreased 19.1% year on year and declined 8.3% against the plan due
to the dispensing fee revisions.
(¥ million)

FY4/18results

Net sales

238,645239,800

245,003+6,358+2.7+2.2

Gross profit

36,03034,50032,741(3,289)

(9.1)

(5.1)

14,034

15,20014,882

+848

+6.0

(2.1)

21,995

19,30017,859(4,136)(18.8)(7.5)

22,66820,00018,331(4,337)(19.1)

(8.3)

1,029

1,112

1,132

+103

+10.0

+1.8

% of net sales

SG&A expenses% of net sales

Operating income% of net sales

Segment income% of net sales

Number ofpharmacies

FY4/19
plan

15.1
5.9
9.2
9.5

14.4
6.3
8.0
8.3

FY4/19results

YoYchangeYoYchange(%)

13.4
6.1

Vs plan
(%)

7.3
7.5

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the consolidated statements of income
Prescription volume: +6.3% YoY© 2019 AIN HOLDINGS INC. All Rights Reserved.

Average prescription price: (3.3)%YoY

3

Cosmetic and Drug Store Business (Consolidated)
Although the net sales of existing stores has showing steadily growth, net sales increased 4.5 % year on
year and decreased 6.6% against the plan. Segment income increased 47.9% year on year anddecreased 4.7% against the plan due to cost reduction and by an overhaul of procurement activities.

(¥ million)

FY4/18results

Net sales

24,117Gross profit

8,925% of net sales

SG&A expenses% of net sales

FY4/19plan

YoYchangeYoYchange(%)

Vs plan(%)

25,210+1,093

+4.5

(6.6)

10,060

9,535

+610

+6.8

(5.2)

8,317

9,060

8,632

+315

+3.8

(4.7)

608

1,000

903

+295

+48.5

(9.7)

657

1,020

972

+315

+47.9

(4.7)

48

55

54

+6

+12.5

(1.8)

37.0

Operating income% of net sales

Segment income% of net sales

Number ofstores

34.5
2.5
2.7

27,000FY4/19results

37.3
33.6
3.7
3.8

37.8
34.2
3.6
3.9

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the consolidated statements of income
Number of customers: +3.0% YoY
Average spending per customer: +1.5% YoY© 2019 AIN HOLDINGS INC. All Rights Reserved.

4

Consolidated B/S
Net cash was ¥35,814 million and shareholdersʼ equity ratio became 54.9%. We are maintaining a soundfinancial structure.
(¥ million)(¥ million)

End-FY4/19

End-FY4/18
AssetsCurrent assets
Cash on hand andin banks

Fixed assets

AssetsLiabilities

94,557 Current liabilities

69,9506,717
443

63,779

Short-term debt
Lease obligations

88,718Long-term
liabilities

16,696

103,515

Short-term debt
Lease obligations

5,571
318

Long-term
liabilities

11,355Long-term debt
Lease obligations

5,985
401

96,733

Deferred
assets59

Total net assets

103,922

183,380

Total assets

189,021

Total liabilities
and net assets

189,021Long-term debt
Lease obligations

11,511
632

Deferred
assets103

Total net assets

183,380

Total liabilities
and net assets

Shareholdersʼ equity
ratio(%)

Fixed assets

48,09173,74445,24938,011

Net cashCash on hand andin banks

85,446 Current liabilities

Goodwill

Goodwill

Total assets

Current assets

Liabilities

44,47452.7

Net cash
Shareholdersʼ equity
ratio(%)

35,81454.9

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 increased ¥5,641 million from the end of the previous fiscal year due to newstore openings and M&A.
(¥ million)

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

End-FY4/17

End-FY4/18

End-FY4/19

Change29,775
9,990
11,66865,42015,365
9,958
1,166

63,77910,466
9,580
94,557
14,934
10,041
824

48,091
12,771
12,89885,446
16,352
10,394571(15,688)+2,305+3,318(9,111)+1,418+353(253)

28,46427,85330,186+2,33340,9398
43,1092,435
2,167
10,44338,011
11
40,132
2,375
3,772
11,33945,2497
47,577
1,795
4,284
15,133+7,238(4)+7,445(580)+512+3,794

19,32920,73225,751+5,01990,902
156,323

88,718103
183,380

103,51559
189,021+14,797(44)+5,641

M&A
New store
openings

M&A

Figures in the table are rounded down
Change:End-FY4/19 compared with End-FY4/18
Capital expenditures (Property, plant and equipment and intangible fixed assets + Deposits and guarantees) totaled ¥9,919 million© 2019 AIN HOLDINGS INC. All Rights Reserved.

6

Liabilities and Net Assets
The balance of liabilities decreased ¥1,547 million from the end of the previous fiscal year due to therepayment of debts etc.
(¥ million)

End-FY4/17

End-FY4/18

End-FY4/19

ChangeAccounts payable

39,32538,72844,794+6,066

Short-term debt

7,596
594

6,717
443

5,571
318

(1,146)(125)

Lease obligations
Total current liabilities
Long-term debt
Lease obligations
Total long-term liabilities
Total liabilities
Common stock
Capital surplus
Retained earnings
Total shareholdersʼ equity
Total net assets
Total liabilities and net
assets72,95569,95073,744+3,79423,18896,144

16,696
86,646

11,35585,099(5,341)(1,547)59,91860,17896,662
96,733103,920
103,922+7,258+7,189156,323

183,380

189,021+5,641

18,254
958

8,682
6,367
45,286

11,511
632

21,89420,50054,2685,985
401

21,89420,50061,526

Repaymentof debts(5,526)(231)+7,258Figures in the table are rounded down
Change : End-FY4/19 compared with End-FY4/18© 2019 AIN HOLDINGS INC. All Rights Reserved.

7

Consolidated C/FInventories increased due to the store opening including M&A. In addition, Net cash used ininvesting activities was ¥19,985 million.
(¥ million)

FY4/18

FY4/19Change21,656

14,788(6,868)17,852

15,624(2,228)Depreciation and amortization

3,596

3,903

+307

Amortization of goodwill

3,937

4,183

+246

(25)

843

+868

(Increase) decrease in inventories

2,278(2,054)(4,332)(Increase) decrease in other accounts receivable

1,685

(407)

(2,092)(1,076)

1,685+2,761(5,281)(19,985)(14,704)(3,709)(4,990)(1,281)(1,310)(13,246)(11,936)

Net cash provided by financing activities

17,623(10,681)(28,304)

Proceeds from issuance of common sharesand sales of treasury shares

27,631-(27,631)

Net increase in cash and cash equivalents

33,998(15,878)(49,876)

Cash and cash equivalents at end of the year

63,23347,495(15,738)

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

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

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

8

Business Value Analysis
FY4/17

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)

38.4
156.6
30.79
250.71
4.09
1,895.63
5.4
14.0
21,90511.07(0.04)
2,371
244,828
244,782

FY4/18

52.7
141.0
23.54
310.082.67
2,729.44
6.2
13.5
27,1567.90(0.46)
44,474258,928
258,620

FY4/19Change

54.9
165.7
34.68
254.873.01
2,931.48
4.8
9.0
24,15411.52(0.34)
35,814314,139
313,178+2.2+24.7+11.14(55.21)+0.34+202.04(1.4)(4.5)(3,002)+3.62+0.12(8,660)+55,211+54,558

Figures in the table are rounded down
Change：FY4/19 compared with FY4/18
Net D/E ratio = (Interest-bearing debt – Cash on hand and in banks) / Shareholdersʼ equity
Shareholdersʼ value = EV – Net interest-bearing debt
Market capitalization：Treasury stock is excepted
Share prices used to calculate market capitalization:
End-FY4/17 ¥7,720 (End-Apr,2017), End-FY4/18 ¥7,300 (End-Apr,2018), End-FY4/19 ¥8,840 (End-Apr,2018).
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.

9

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 per
share(¥)

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
10Review
Revision of 2018
Growth strategy© 2019 AIN HOLDINGS INC. All Rights Reserved.

11

Review© 2019 AIN HOLDINGS INC. All Rights Reserved.

12

Review（YoY）
Although net sales increased due to the new store openings and full contribution of stores that opened inprevious fiscal year, ordinary income decreased 17.3% year on year due to the impact of revision.

Net sales¥268.3 billion
Dispensing
Pharmacy¥238.6 billion

Ordinary income¥275.5 billion

Dispensing
Pharmacy¥245.0 billion

Cosmetic andDrug Store¥24.1 billion

Cosmetic andDrug Store¥25.2 billion

Others ¥5.6 billion

Others ¥5.3 billion

FY4/18results

FY4/19results

New+¥12.8billion
storesStore openedin last year +¥5.0billion
Impact of¥(6.9)billion
revision
Closing¥(4.5)billion
stores+¥6.4 billion

New+¥0.6billion
storesStore openedin last year +¥0.6billion
Existing+¥0.6billion
storesClosing¥(0.7)billion
stores+¥1.1 billion¥20.1 billion¥16.6 billion
Dispensing
Pharmacy¥22.6 billion

Cosmetic andDrug Store¥0.6 billion
Others¥(1.1)billion

Head office
expense¥(2.0) billion

FY4/18results© 2019 AIN HOLDINGS INC. All Rights Reserved.

Dispensing
Pharmacy¥18.3 billion

Cosmetic andDrug Store¥1.0 billion

Net sales +¥2.3billion
Operation¥(5.0)billion
costs
SG&A

¥(0.8)billion¥(3.5) billion

Others ¥(0.2)billion

Head office
expense¥(2.5) billion

FY4/19results
13

Review（Vs plan）
Although net sales increased due to the new store openings and contribution of existing stores, ordinary
income decreased due to store opening delayed and a decrease in gross profit by high-price drugs.

Net sales

Ordinary income¥272.8 billion ¥275.5 billion
Dispensing
Pharmacy

Dispensing
Pharmacy¥239.8 billion¥245.0 billion

Cosmetic andDrug Store¥27.0 billion

Cosmetic andDrug Store

Others ¥6.0 billion

Others ¥5.3 billion

FY4/19plan

FY4/19results¥25.2 billion© 2019 AIN HOLDINGS INC. All Rights Reserved.

¥18.0 billion
Existing +¥5.7billion
storesNew+¥0.8billion
storesClosing ¥(1.3)billion
stores+¥5.2 billion

Existing
stores ¥(1.1)billion
New
stores ¥(0.7)billion¥(1.8) billion¥16.6 billion
Dispensing
Pharmacy

Dispensing
Pharmacy¥20.0 billion¥18.3 billion

Cosmetic andDrug Store¥1.0 billion

Cosmetic andDrug Store¥1.0 billion

Others ¥(0.6) billion

Others ¥(0.2) billion

Head office
expense¥(2.4) billion

Head office
expense¥(2.5) billion

FY4/19plan

FY4/19results

Net sales +¥0.6billion
Operation¥(3.3)billion
costs
SG&A

+¥1.3billion¥(1.4) billion

14

Revision of 2018

© 2019 AIN HOLDINGS INC. All Rights Reserved.

15

Responsive to revision of 2018

Object: 968 stores, which including existing stores and stores opening in FY4/18
 Community support system premiums

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

3-Ⅱ(15pts)

S(10pts)

No premiums

500
0

1,000
353
6

353
6

370
7

370
7

596

596

577

577

13

13

14

14

4/18

10/18

4/19

3/20
（Plan）StoresStores1,000

500Community support system premiums(35pts)

264

278

293

296

704

690

675

672

4/18

10/18

4/19

0

（mm/yy）

3/20 （mm/yy）（Plan）

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

 GE premiums

Stores

1,000
500
0

132
332
223
281
4/18

1(18pts)

255
333
157
223
10/18

2(22pts)3(26pts)

358

396

292

274
123
175

129
189
4/19

© 2019 AIN HOLDINGS INC. All Rights Reserved.

3/20（Plan）（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

19.2

15.8

18.3

14.8

15.7

12.2

10.0
3/18

4

7

10

1/19

4

（mm/yy）
Average of GE premiums per a reception
GE drugs share (volume)：80.1%（As of April 2019）16

Growth strategy© 2019 AIN HOLDINGS INC. All Rights Reserved.

17

Transition in the dispensing pharmacy market
SPD※ rate(Market size)

Systemʼ56 The system of SPD

ʼ94 18%(¥1 trillion)

launchedʼ17 73%(¥7.7 trillion)

ʼ20 75%(¥8 trillion) ※ʼ90 Standards for dispensing system premiums ʼ00 Patient medication ʼ06 GE prescription format ʼ15 Vision for patients-focused dispensing pharmacies
ʼ72 Basic dispensing fee
notebookʻ74 Prescription fee increased ʼ93 Pharmacyʼs business operation guidelines
ʻ16 Primary care pharmacists instruction fee
ʼ08 GE premiums
ʼ86 Drug use history management ʻ94 Premiums for preventing double ʼ02 Abolition of regulation of
ʼ09 Registered seller system Exception for major dispensing pharmacies
ʻ89 Heisei era starts
3% consumption tax introduced
Bubble economy burst

ʼ19 New Reiwa era
ʼ08 Lehmanʼs collapse
ʼ97 Consumption tax 5%
Consumption tax 10%※
ʼ11 The Great East Japan Earthquake“The Hokkaido Takushoku Bank”
and “Yamaichi Securities” bankrupt
ʼ14 Consumption tax 8%

ʼ93 Converted from clinical laboratory todispensing pharmacy business

AIN
group

long-term prescripts

medication and drug interaction

and guidance fee

Socialʼ10 63%(¥6 trillion)

ʼ05 54%(¥4.6trillion)

ʼ00 39%(¥2.7 trillion)

ʻ15 Became holdings company

ʻ06 WSS establishedʻ94 Initial public offering（JASDAQ）
ʼ98

ʻ12 Digital patient medication notebook

ʻ02 First ainz & tulpe

ʻ08 Capital and business alliance with 7&i HD

Company name changed to “AIN PHARMACIEZ”

ʼ16 No. of dispensing

ʻ09 Second Section of the Tokyo Stock Exchange

ʻ99 Capital and business alliance with MARUBENI

ʻ10 First Section of the Tokyo Stock Exchange

pharmacies
achieved 1000(¥ billion)
3,000
300

(¥ billion)
500
50

Net sales

AIN Pharmacy
NISHISHINJUKUDrug dispensing
error prevention
systemainz & tulpe
SAPPOROCHIKAGAI

Digital patient
medication notebook

WSS established

2,000
200

Net sales of dispensing pharmacy business

1,500
150

Segment income

1,000
100

¥245.0 billion¥22.3 billion

300
30¥18.3 billion
200
20¥0.9 billion

1994

1998

2002

2006

2010

2014

2018

2019 (plan)

11

48

148

247

448

754

1,132

1,202

（億円）

6,355.6

6,079.9

6,775.1

7,696.9

8,873.6

9,983.4

10,337.5

-

（億円）

266.9

279.7

338.8

415.6

514.7

678.9

1,010.0

1,223.3（Prospect）¥1.1 billion
ー

Year

1956

No. of
store

-

Drug
marketGE drug
market¥66.7 billion¥4.0 billion¥10.2 billion

400
40¥266.8 billion¥27.2 billion¥1.8 billion

50
500
0

¥114.3 billion¥169.1 billion¥14.4 billion

AIN Pharmacy
TOUDAI(¥ billion)(¥ billion)-¥12.3 billion

GE©drug
before INC.
2002Allare
estimatedby AIN group2019market
AIN HOLDINGS
RightsReserved.

100
10

SPD: Separation of dispensing and prescribing drugs※: Prospect

018

Segment income

First store
DAIICHI
Pharmacy

2,500
250

Transition of dispensing fee revision(¥million)

0.007

250,000

Non-hospital
dispensing ratio(%)

Dispensing pharmacy
market (¥trillion)

0.008

Dispensing
pharmacy sales

Segment income(¥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

2017
72.8%
¥7.7 trillion

70.0%

20,000
60.0%

0.006

調
Dispensing
剤
Pharmacy売
net sales
上高200,000
0.005

150,000●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

2000
39.5%

0.004

1997
26.0%

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

0.003

100,000●2014: consumption tax raised to 8%¥6.0 trillion

2004
53.8%

50.0%

2018
Dispensing
pharmacy net sales¥245,003 million¥4.1 trillion

15,000
Segment
income40.0%

10,00030.0%●2002: Regulation of long-term prescriptions
was abolished¥2.7 trillion

20.0%

0.002

50,000¥1.6 trillion

0.001

0

Year

Dispensing pharmacy sales¥296 million
056

No. of pharmacies
Revision ratio on medical
treatment feesYear(%)
Revision ratio on dispensing fees(%)
Revision ratio on drug prices (%)(Drug prices base)

56
-

92
92

93
93

9494

+5.0

+3.3

+1.9
▲8.1

-

98
98

193 218247+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

+2.0

+0.1

+1.3 +1.15

+0.7

+0.8

▲1.3

±0

▲0.6

+0.17

+0.52

+0.46

+0.22 *2

+0.17

+0.19

*4

*4

▲6.6

-

▲6.8 ▲3.0
*1

▲9.7

▲7.0

▲6.3

▲4.2

▲6.7

▲5.2

▲5.75

▲6.0

▲2.65

▲7.77

▲7.48

11

29

96
96

34

39

48

99
99

58

00
00

75

01
01

92

02
02

148

03
03

148

04
04

05
05

06
06

07
07

356

08
08

10.0%

97
97

1

9595

5,000

2008
Dispensing
pharmacy sales¥100,000 million

375

09
09

10
10

397 448

11
11

494

12
12

13
13

560

14
14

616

15
15

754

*3

881

16
16

17
17

18
18

19
19
1,066 1,029 1,132 Plan

0.0%

0

1996(4 divisions) 1997
2018(Additional division)
1998
2014(Subtraction due to non-settlement) 2016(Additional division)
2010
Basic dispensing fee 1990
1994(2 divisions)
2004(3 divisions) 2006(2 divisions) 2008
41points：Except following
41points：Except following→
46 → 49 points ：4,000 times or less and 70% or less 49 points→
41 points：Except following
40 → 40 points ：4,000 times or less31points 40 points：5,000 times or less 45421972(New)
25points：Over 4,000 times and over 70% 25points：Over 4,000 times and over 70%
→
→
41
40
44 points ：Over 4,000 times and 70% or less
70% or less
33 points： Over 5,000 times
8 points
or over 2,000 times and over 90%
or over 2,000 times and over 85%
39 points→
36 → 39 points ：4,000 times or less and over 70%→
35
or over 4,000 times from specificor over 4,000 times from specific
18 → 24 points ：over 4,000 times and 25 points：Over 4,000 times and19over 70%
hospital
hospital（Medical mall・Same HP)→
20 → 21 points ：Over 4,000 times and over 70%
20
over 70%
21 points
Over 2,500 times andover 90%

Standards for dispensing system premiums
1992
1990(New)1994
12 points 14 points
9 points
Stock 500 items
Concentration ratio: 90% or lessBasicdispensing
fee

1998
1996(Additional condition)
In case of over 600 times:70% or less
20 points
Concentration ratio: 70% or lessLicense to sell narcotic drugs
Services for after-hours(Multiple pharmacies approved)

2002(2 divisions)
10 points：Stock 500 items
30 points：Stock 700 items
Conduct of training2012
10 points：700 items
30 points：1,000 items
Open time

20points：Same group over 40,000 times 20points：Same group over 40,000 times
per month and over 95% orlease contract with medical
institution

2016(1 division) 32points

2014
12 points：Basic dispensing fee 41points &24-hour rotation support & Home healthcare support
36 points：Basic dispensing fee 41points &Concentration ratio: 70% or less & 24-hour own support& Home healthcare services (10 cases / year)

Basic dispensing fee 41points &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

per month and over 85% orlease contract with medical
institution
15points：Same group over 400,000 times
per month and over 85% orlease contract with medical
institution
10points：Same premises and over 95%

Premiums for community
support systems
2018(New) 35points
Basic dispensing fee 1 : Follow thestandards for dispensing system
premiums
Other than ① : 8 items
considerable achievements/pharmacist

Premiums for generic drug dispensing systems
2018
18 points : 75%-80%
22 points : 80%-85%
26 points : Over 85%

2014(New standards) 2016
2008(Dispensing ratio) 2010(Volume base) 2012
6 points：20%-25% 5 points：22%-30%
18 points:55%
18 points : 65%-75%
13 points：25%-30% 15 points：30%-35% 22 points:65%
22 points : Over 75%
17 points：Over 30% 19 points：Over 35%

2006

Started promoting GE drugs 4 points：30%
by changing styleof prescription

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

1990
11 points

1992
15 points

1994
21 points

1996
30 points

1997
32 points

2000
22 points

2002
17 points

2006
22 points

2010(1 division)
2008(2 divisions)
30 points
30 points
35 points:：For the elderly
aged over 75

2012
41 points

2014(2 divisions)
41 points
34 points:
No notebooks

2016
38 points：Basic dispensing fee 41 points,
handing over medication notebook,patients’ visiting within 6 month
50 points：Except the above

Primary care pharmacists
instruction fee
2016(New) 70 points

Pharmaceuticalmanagement fee

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
1996
1994(New)
550 points
550 points(Up to 2 times a month)(Up to once a month)2002
500 points： Up to once a month
300 points： After 2 times to 4 times

2012

2008
350 points： Resident in same facility / house
500 points： Except the above(Up to 4 times a month)

2014

Within 16㎞ 300 points
in principle 650 points(Up to 5 times a day
per a pharmacist)2016
300 points
650 points
Up to 40 times a week
per pharmacist

2018
41 points
53 points
13 points : Handing overmedication notebook
ratio 50% or less

2018

73points

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

2018
Except following
290 points
Single building 2-9person 320 points
Single building 1person
650 points

Drug information provision fee (for patient medication notebook)
No. of basic dispensing fee is equal to No. ofPremiums by revisions are excerpted from Japan
monthly average receptions of prescriptions
Pharmaceutical Association
Including the correspondence to consumption tax
The income before FY 2008(※1:+1.4%、※2：+0.18%、※3:+2.99%)
is operating income© 2019 AIN HOLDINGS INC. All Rights Reserved.

※4:Except the adjustment for the role of pharmacies located near hospitals

2000(New)2004

15 points：Issue of notebooks
17 points
10 points：Provision of drug information
10 points(once a month)

2006(1 division)
15 points
Drug information is
integrated into instruction fee

2008(2 divisions)
15 points：(Excluding the elderly
aged over 75)

Premiums for special instruction
2000(New)
20 points

2002
30 points

2010(1 division)
15 points(including the elderly
aged over 75)

2012
Integrated into instruction fee

Premiums for specific drug management instruction
2004
28 points

2006
22 points

2008
Integrated into
instruction fee

2010 (New)
4 points

2016
10 points

2018
10 points

19

Growth Strategy
2018 revisions was severe revision such as the drastic reduction in drug prices and point reduction for majordispensing pharmacy operators. The group continues to strengthen pharmacy functions with a view ofstrict system changes in the future.

■ Top-line
Expanding of business by active new store openings inprime location and by secure M&As

■ Strengthening the function of pharmacies
Enhancing Primary Care and specialized functions, andStrengthening the function of pharmacies with utilizing ICT.

■ Recruiting and training human resources
Recruiting activity and development of human resources
with the energy of the entire company■ Expansion of ainz & tulpe
Improve the ratio of original brands and margin by continuing toopen ainz & tulpe in the metropolitan area and by implementing
measures to raise brand visibility in urban markets© 2019 AIN HOLDINGS INC. All Rights Reserved.

20

Top-line
The group opened 164 stores including M&A in FY4/19 that substantially exceeded the plan. 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

1,186 (Dispensing pharmacy:1,132、Cosmetic and drug store:54)

Opening
ClosedFY4/20FY4/19■ PlanPlan

Results

Plan

100

157

100

Organic

30

23

25

M&A

70

134

75

Cosmetic anddrug store

7

7

15

Total

107

164

115

17

54

30

0

1

5

17

55

35

Dispensing
Pharmacy

Dispensing
Pharmacy
Cosmetic anddrug store

Total■ Transition of dispensing pharmacies

Hokkaido
122
Koshinetsu
113
Chugoku,
Shikoku
92

Tohoku172

Hokuriku
25

Kyusyu, Okinawa
42

Kanto
397

Kinki
136

Tokai
87
End-FY4/19

FY4/10 FY4/11 FY4/12 FY4/13 FY4/14 FY4/15 FY4/16 FY4/17 FY4/18 FY4/19

Organic
M&A

EV/EBITDA ratio

ClosedSold

No. of total stores

21

18

27

38

36

40

32

27

25

23

3
3.45

35
5.60

28
5.51

38
5.09

26
3.94

119
4.77

110
5.37

182
5.50

11
3.96

134
4.88

2
397

5
448

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

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

No. of stores include temporary closed stores from FY4/11

21

Recruiting of Pharmacists

In April 2019, new 534 employees (pharmacists 257, general staff 277) has joined our group.
We plan to recruit 800 employees in April 2020.

■ 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

189
8,641

251
8,929

2014
251
7,312

2015
229
9,044

2016

2017

375
11,488

2018

307
9,479

2019

279
9,584

2020

257
10,194（88.3%）（79.1%）（60.8%）（63.2%）（76.9%）（71.6%）（70.6%）（70.9%）

2.2%

2.8%

3.4%

2.5%

3.3%

3.2%

2.9%

2.5%

（5.7%）（7.0%）（8.0%）（8.0%）（11.7%）（10.0%）（8.0％）

（

-

）

400
-

（

-

）

（

-

）

Estimates : based on the result in AIN Group, and data from the Ministry of Health, Labor and Welfare, Council on Pharmaceutical Education.

（People）
No. of newly-hired employees

800

General staff

Pharmacists

600

400

400
200
0

375

189

251

251

47

53

28

2012

2013

2014

© 2019 AIN HOLDINGS INC. All Rights Reserved.

307

257
279

229
93

2015

173

174

152

2016

2017

2018

277

2019

400

2020

（Plan）

22

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&A
and close 30 stores.
（¥ million）

Net sales
Gross profit% of net sales

FY4/18results

FY4/19results

FY4/20plan

YoYchangeYoYchange (%)

238,645 245,003 266,850 +21,847
36,03032,74137,020 +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
Prescription volume: +7.9% YoY© 2019 AIN HOLDINGS INC. All Rights Reserved.

Average prescription price: +1.2%YoY

23

Expansion of ainz & tulpe①
FY4/00

FY4/02First ainz & tulpe

Store opening

Strategy ofYear

FY4/04FY4/06

FY4/08Open department
store

ExpandedNationwide

FY4/12

FY4/14

FY4/16

Flagship store inOpen store
metropolitan area
inside the station

SHINJUKUHIGASIGUCHITokyo Station

その他売上⾼Othernet sales

セグメント利益
Segment income

UMEDA HEPFIVE（¥ million）
10,000Gross profit margin

Net sales

30,00020,00010,000
0

31.6%

25.0%

FY4/00Net sales¥4.2 billion

FY4/20Net sales¥28.5billion

FY4/12
Net sales¥15.3 billion

FY4/05Net sales¥12.5 billion

42.0%

38.4%

8,000
6,000
4,000

Segment
income¥1.3 billion

2,000
0

4/00 4/01 4/02 4/03 4/04 4/05 4/06 4/07 4/08 4/09 4/10 4/11 4/12 4/13 4/14 4/15 4/16 4/17 4/18 4/19 4/20 4/21 4/22 （Fiscal year）(plan) (plan) (plan)

Net sales(¥ billion)

4.2

Segment
income(¥billion)

5.0 5.8

7.9 9.5 12.5 14.8 14.2 13.9 13.2 13.6 14.8 15.3 16.7 17.9 17.8 20.8 21.3 24.1 25.2 28.5 35.0 45.0

0 (0.1)00.1

0 (0.1) (0.2) (0.2) (0.4) (0.2) (0.4) (0.2)

0.1

0

0

0.1 (0.4) (0.8)

0.6 0.97

1.3

－

30

36

33

40

27

44

43

43

45

46

49

53

56

61

59

56

52

52

48

54

64

80 100ainz & tulpe

0

0

0

1

4

9

12

13

15

18

20

26

33

39

41

41

42

45

41

48

58

74

94

Closing

0

0

5

7

16

0

4

3

1

4

2

2

4

2

5

6

9

9

8

1

5

－

－

Membership(million people)

－

－ 0.0

0.0 0.0

0.1

1.0

1.2

1.5

1.7

2.0

2.2

2.5

2.9

3.2

3.6

4.2

4.6

5.0

5.5

－

－

－

No.of store

Segment income

26.2%

FY4/22KEIO DEPARTMENTSTORE SHINJUKU

50,00040,000FY4/20

Le trois

HARAJUKU QUEST

アインズ＆トルペ売上⾼
Netsales of ainz & tulpe

FY4/18Complex facility

IKEBUKURO SEIBUSAPPORO CHIKAGAI（¥ million）
60,000FY4/10© 2019 AIN HOLDINGS INC. All Rights Reserved.

－

24

Expansion of ainz & tulpe②
Due to improving of brand awareness in the metropolitan area, sales of existing stores are
improving solidly and the group has became able to absorb the cost of new store opening.
During this period, the group opened 7 new stores including 2 stores in Osaka.
■ Existing Stores（43 stores）（¥ million）

FY4/18

FY4/19YoY change

YoYchange(%)

Net sales

22,82323,421+598+2.6

Segment
income

1,250

1,671

+421

+33.7

5.5

7.1

% of net sales

Segment income increased
33.7%, while net sales
increased 2.6%.It proves
steadily improving of
earning profitability.

■ ABENO HOOP (Osaka)Open

Apr 10, 2019

Sales floor

301㎡

ＳＫＵ

10,400■ UMEDA HEPFIVE (Osaka)Open

Apr 19, 2019

Sales floor

566㎡

ＳＫＵ

13,000© 2019 AIN HOLDINGS INC. All Rights Reserved.

25

Expansion of ainz & tulpe③
The group plan to open 15 new stores in FY4/20 by active opening in such as complex facilities
where has great abilities at attracting customers.
■ New store opening plan in FY4/20
Name of store

LocationOpen
dd/mm/yyFloor

1bono SAGAMIONO

Kanagawa

30/5/19258㎡

2

ASAKUSA ROX

Tokyo

21/6/19238㎡

3

PERIE Chiba

Chiba

7/19

221㎡

4

KAWASAKI EKIMAE(TBC)

Kanagawa

8/19

407㎡

5

Kashiwa Modi(TBC)

Chiba

9/19

245㎡

6

Store “A”

Aichi

9/19

231㎡

7

Store “B”

Hokkaido

9/19

99㎡

8

Store “C”

Tokyo

9/19

463㎡

9

Store “D”

Kanagawa

10/19

311㎡

10

Store “E”

Saitama

11/19

364㎡

11

PERIE Kaihimmakuhari

Chiba

11/19

284㎡

12

Store “F”

-

3/20

-

13

Store “G”

-

4/20

-

14

Store “H”

-

4/20

-

15

Store “I”

-

4/20

-

© 2019 AIN HOLDINGS INC. All Rights Reserved.

ainz & tulpe bono SAGAMIONO

ainz & tulpe PERIE Chiba (image)26

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

24,1178,925

37.0

FY4/19results

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

48

54

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
Number of customers: +6.2% YoY
Average spending per customer: +6.5% YoY© 2019 AIN HOLDINGS INC. All Rights Reserved.

27

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 per
share(¥)

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
28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
http://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.

29