FY4/17
IR PRESENTATION

June 2017

Results Overview© 2017 AIN HOLDINGS INC. All Rights Reserved.

1

Consolidated P/L
Net sales increased 5.6% year on year and decreased 0.8% against the plan reflecting 218 new store openings
including M&As and store openings in the previous year. Ordinary income decreased 0.5% year on year anddecreased 1.4% against the plan due to the impact of drug price and dispensing fee revisions etc.
FY4/16
FY4/17
FY4/17
YoY
YoY
Vs plan(¥ million)change(%)(%)
changeresults
revised plan
results

Gross profit

234,843
38,535250,000
42,500% of net sales

16.4

17.0

23,91527,700

10.2

11.1

11.1

14,61914,80014,563

6.2

5.9

5.9

15,15815,30015,080

6.5

6.1

6.1

7,917

8,300

7,949

% of net sales

3.4

3.3

3.2

Earnings per
share(¥)

249.69261.77250.71Net
sales（単位：百万円）

SG&A expenses% of net sales

Operatingincome% of net sales

Ordinary income% of net sales

Profit attributable toowners of parent

248,110 +13,267
42,092 +3,557

+5.6

(0.8)

+9.2

(1.0)

+15.1

(0.6)

(56)

(0.4)

(1.6)

(78)

(0.5)

(1.4)

+32

+0.4

(4.2)

+1.02

+0.4

(4.2)

17.0

27,529 +3,614

Figures in the table are rounded down
© 2017 AIN HOLDINGS INC. All Rights Reserved.

2

Dispensing Pharmacy Business (Consolidated)
Net sales increased 5.1% year on year and decreased 1.0% against the plan reflecting new store openings
including M&As and store openings in the previous year. Segment income decreased 0.6% year on year anddecreased 2.0% against the plan due to the impact of drug price and dispensing fee revisions etc.

FY4/16
results

FY4/17
revised plan

Gross profit

211,00930,268224,000
32,600% of net sales

14.3

14.6

11,62913,600

5.5

6.1

6.1

18,63919,00018,658

8.8

8.5

8.4

19,21919,50019,110% of net sales

9.1

8.7

8.6

Number ofpharmacies

881

1,001

1,066

(¥ million)（単位：百万円）

Net sales

SG&A expenses% of net sales

Operatingincome% of net sales

Segment income

FY4/17
results

YoYchange221,801 +10,792
32,090 +1,822

YoYchange(%)

Vs plan
(%)

+5.1

(1.0)

+6.0

(1.6)

+15.5

(1.2)

+19

+0.1

(1.8)

(109)

(0.6)

(2.0)

+185

+21.0

+6.5

14.5

13,432 +1,803

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the quarterly consolidated statements of income
Plan of the number of stores is by original plan
© 2017 AIN HOLDINGS INC. All Rights Reserved.

Prescription volume: +15.6% YoY

Average prescription price: (9.2)% YoY
3

Drug and Cosmetic Store Business (Consolidated)
Net sales increased 2.4% year on year by new store openings and sales growth of flagship stores. The ratioof gross profit to net sales year on year has improved by the active development of original products, butsegment income became ¥(866) million due to the increase of sales promotion expenses, etc.

(¥ million)

FY4/16
results

FY4/17
revised plan

Net sales

20,884Gross profit% of net sales

FY4/17
results

YoYchangeYoYchange(%)

Vs plan(%)

21,383

+499

+2.4

+0.4

7,236

21,300
7,750

7,623

+387

+5.3

(1.6)

34.6

36.4

35.6

7,931

8,570

8,583

+652

+8.2

+0.2

38.0

40.2

40.1

(694)

(820)

(959)

(265)

‐

‐

-

-

-

(459)

(740)

(866)

(407)

‐

‐

% of net sales

-

-

-

Number ofstores

52

58

52

0

0

(10.3)

SG&A expenses% of net sales

Operatingincome% of net sales

Segment income

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the quarterly consolidated statements of income
Plan of the number of stores is by original plan
Number of customers: (0.3)% YoY© 2017 AIN HOLDINGS INC. All Rights Reserved.

Average spending per customer: +2.7% YoY
4

Consolidated B/S
In spite of the increase of debt by M&A financial arrangements, net cash became ¥2,371 million due to theincrease of cash on hand and in banks by ¥7,128 million from the end of FY4/16.
(¥ million)(¥ million)

End-FY4/17

End-FY4/16
AssetsCurrent assets
Cash on hand andin banks

Fixed assets
Investments insecurities

56,593Current liabilities
Short-term debt

22,647

Lease obligations

liabilities
83,294 Long-termLong-term debt

66,744Current assets

5,690
668

Cash on hand andin banks

19,818Fixed assets

2,677

Lease obligations

14,854
1,198

Investments insecurities‐

Total net assets

53,324

Deferred
assets139,888

Total liabilities andnet assets

139,888

Total assets

Deferred
assetsTotal assets

AssetsLiabilities

Liabilities

65,42029,775Current liabilities
Short-term debt
Lease obligations

liabilities
90,902 Long-termLong-term debt

72,955
7,596
594

23,1882,435

Lease obligations

18,254958‐

Total net assets

60,178156,323

Total liabilities andnet assets

156,323

Net cash236

Net cash

2,371

Shareholders’ equity
ratio(%)

38.1

Shareholders’ equity
ratio(%)

38.4

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)© 2017 AIN HOLDINGS INC. All Rights Reserved.

5

Assets
The balance of total assets increased by ¥16,435 million from the end of FY4/16 reflecting the increase of cashon hand and in banks by M&A financial arrangements and the increase of goodwill by M&A execution.
(¥ million)

End-FY4/15

End-FY4/16

End-FY4/17

Change+7,128Inventories

19,5538,369
9,909

22,647
12,385
10,98429,775
9,990
11,668

Total current assets

46,36556,59365,420

Buildings and structures,net

Lease assets

11,678
7,931
1,388

14,694
9,537
1,352

15,365
9,958
1,166

Total property,plant and equipment

22,47228,15328,464+311

Goodwill
Lease assets

26,34028

33,337
13

40,9398+7,602(5)

Total intangible fixed assets

27,62335,586

43,109+7,523

Investments in securities

2,872
984
9,710

2,677
2,038
10,013

2,435
2,167
10,443

(242)
+129
+430

17,68867,783
114,149

19,55583,294
139,888

19,32990,902
156,323(226)+7,608+16,435

Cash on hand and in banks
Notes and accounts receivable

Land

Deferred tax assets
Deposits and guarantees
Total investments and other assets
Total fixed assets
Total assets

Increase by
M&A financial
arrangements(2,395)+684+8,827
+671
+421
(186)
Increase by
M&A
execution

Change:End-FY4/17 compared with End-FY4/16
Figures in the table are rounded down
Capital expenditures (Property, plant and equipment and intangible fixed assets + Deposits and guarantees) totaled ¥4,786 million© 2017 AIN HOLDINGS INC. All Rights Reserved.

6

Liabilities and Net Assets
The balance of liabilities increased ¥9,581 million by the debt finance as M&A funds etc.

(¥ million)

End-FY4/15

End-FY4/16

End-FY4/17

ChangeLease obligations

31,826
6,330
628

39,987
5,690
668

39,325
7,596
594

(662)
+1,906(74)

Total current liabilities

54,43366,744

72,955+6,211

7,640
1,341

14,854
1,198

18,254958+3,400(240)

11,66966,103

19,81886,56323,18896,144+3,370+9,581

8,682
7,872
31,6398,682
6,367
38,6058,682
6,367
45,286‐‐
6,681

47,77648,046
114,149

53,23753,324
139,888

59,91860,178156,323+6,681+6,854+16,435

Accounts payable
Short-term debt

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 net assets

M&A
funds
etc.

Figures in the table are rounded down
Change : End-FY4/17 compared with End-FY4/16© 2017 AIN HOLDINGS INC. All Rights Reserved.

7

Consolidated C/F
The change of net increase in cash and cash equivalents became ¥7,342 million by M&A financial
arrangements etc.
(¥ million)

End-FY4/16

End-FY4/17

ChangeNet cash provided by operating activities

21,352

18,409(2,943)

Profit before income taxes

13,94914,307+358

Depreciation and amortization

3,259

3,687

+428

Amortization of goodwill

2,938

3,654

+716

Decrease in accounts receivable

236

5,369

+5,133

Decrease in inventories

495

449

(46)

Increase in other accounts receivable(600)(2,820)(2,220)(Decrease) increase in accounts payable

3,031(4,340)(7,371)(20,877)(11,183)+9,694

Payments for purchases of property, plant andequipment and intangible fixed assets(9,916)(3,448)+6,468Purchase of subsidiaries’ shares resulting in obtaining controls(10,954)(9,697)+1,257

Net cash provided by financing activities

2,028

116

(1,912)

Net increase in cash and cash equivalents

2,503

7,342

+4,839Cash and cash equivalents at end of the year

21,892

29,234+7,342

Net cash used in investing activities

Figures in the table are rounded down
© 2017 AIN HOLDINGS INC. All Rights Reserved.

8

Business Value Analysis
End-FY4/15
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)
Net cash (¥ million)
Shareholders’ value (¥ million)
Market capitalization (¥ million)

42.0
117.9
21.72
195.452.82
1,511.57
5.8
13.8
16,2847.98(0.08)
3,613
133,605
134,598

End-FY4/16

38.1
121.0
21.39
249.693.19
1,679.69
6.2
15.6
20,8168.08(0.00)
236
168,520
169,318

End-FY4/17

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

Change

+0.3
+35.6
+9.40
+1.02
+0.90
+215.94(0.8)(1.6)+1,089+2.99(0.04)+2,135+76,308+75,464

Figures in the table are rounded down
Change：End-FY4/17 compared with End-FY4/16
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-FY4/15 ¥4,245 (End-Apr,2015), End-FY4/16 ¥5,340 (End-Apr,2016), End-FY4/17 ¥7,720 (End-Apr,2017).
Net cash = Cash on hand and in banks – Interest-bearing debt (Long- and short- term debt + Lease obligations )On October 1, 2014, the Company conducted a 2-for-1 stock split of common shares. Earnings per share is calculated by deeming stock splits to haveoccurred at the beginning of the previous fiscal year.
© 2017 AIN HOLDINGS INC. All Rights Reserved.

9

FY4/18 Plan (Consolidated)
We expect that net sales increase 7.8% year on year by new openings (100 pharmacies in dispensing pharmacy
business and 8 stores in drug and cosmetic store business). We also expect that ordinary income increase 12.7%
by the promotion of the use of generic drugs, calculation of technical fees and improvement of operating efficiency.

FY4/16
results

FY4/17
results

FY4/18plan

Gross profit

234,843
38,535248,110
42,092

267,500 +19,390
46,530 +4,438% of net sales

16.4

17.0

17.4

23,91527,52929,930

10.2

11.1

11.2

14,61914,563

16,600

6.2

5.9

6.2

15,15815,08017,000

6.5

6.1

6.4

7,917

7,949

8,900

% of net sales

3.4

3.2

3.3

Earnings per
share(¥)

249.69250.71

40.00

50.00

(¥ million)

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 (¥)
Figures in the table are rounded down

© 2017 AIN HOLDINGS INC. All Rights Reserved.

YoYchangeYoYchange (%)

+7.8
+10.5

+2,401+8.7+2,037+14.0+1,920

+12.7

+951

+12.0

280.69+29.98

+12.0

50.00

(0.00)(0.0)

YoY change, YoY change(%) :FY4/18 plan compared with FY4/17 results

10Review
Revision of 2016
Growth Strategy© 2017 AIN HOLDINGS INC. All Rights Reserved.

11

Review© 2017 AIN HOLDINGS INC. All Rights Reserved.

12

Vs Original Plan (Consolidated)
Net sales decreased 6.4% against the plan due to drug price revision etc in spite of the contribution of newstore openings including M&As and openings in the previous year. Ordinary income decreased 9.7% due tonon-achievement of generic drug usage plan and non-achievement of net sales plan in retail business.
(¥ million)

FY4/16
results

FY4/17
Original plan

FY4/17
results

YoYchange(%)

Gross profit

234,843
38,535265,000
44,200248,110
42,092% of net sales

16.4

16.7

17.0

23,91527,90027,529

10.2

10.5

11.1

14,61916,30014,563

6.2

6.2

5.9

15,15816,70015,080

6.5

6.3

6.1

7,917

9,000

7,949

% of net sales

3.4

3.4

3.2

Earnings per
share(¥)

249.69283.84250.71Net
sales（単位：百万円）

SG&A expenses% of net sales

Operatingincome% of net sales

Ordinary income% of net sales

Profit attributable toowners of parent

Vs plan
(%)

+5.6

(6.4)

+9.2

(4.8)

+15.1

(1.3)

(0.4)

(10.7)

(0.5)

(9.7)

+0.4

(11.7)+0.4(11.7)

Figures in the table are rounded down
© 2017 AIN HOLDINGS INC. All Rights Reserved.

13

Review①
 YoY+¥2.2 billion+¥1.8 billion ¥(14.0)billion
AYURA
Mail order+¥15.8 billion
New 218 stores

Increase of net
sales

Decrease of hepatitis C
Impact of revisions
Promotion of GE drugs¥(1.0)billion
Impact of revision
WSS .

¥(1.1)billion¥(5.0)billion
Close of unprofitable stores+¥14.6 billion

Retail(Drug and cosmetic stores,
Mail order, AYURA)

Full contribution ofprevious year’s
openings+¥13.2 billion+5.6%¥(0.2)billion
Increase of office cost, etc

FY4/16
Net sales

FY4/17
Net sales

FY4/16
Ordinary income¥(0.08)billion(0.5)%

FY4/17
Ordinary income

Decrease of hepatitis C： Impact of hepatitis C drug prices’ reduction or decrease of hepatitis C drugs’ usage© 2017 AIN HOLDINGS INC. All Rights Reserved.

14

Review②
 Vs revised plan+¥0.4 billion
Reduction of
office cost¥(2.4)billion
Impact of revisions
WSS+¥1.4 billion
Excess oftechnical feesby M&As+¥5.7 billion ¥(18.8)billion
Excess of
Decrease of hepatitis C
store openings Impact of revisions

FY4/17
Revised plan
Net sales

FY4/17
Revised plan
Ordinary income¥(1.3)billion
Close ofunprofitable
stores¥(1.0)billion
Retail¥(2.5)billion¥(16.9)billion
Retail(Drug and
(6.4)%
cosmetic stores,
Mail order,
FY4/17AYURA)(Drug and Cosmetic
Store, Mail order,
AYURA)Net sales
Decrease of hepatitis C： Impact of hepatitis C drug prices’ reduction or decrease of hepatitis C drugs’ usage© 2017 AIN HOLDINGS INC. All Rights Reserved.

¥(1.6)billion(9.7)%
FY4/17
Ordinary income
15Review③
 Transition of Hepatitis C drugs’ sales(¥ million)

2,000

Total ¥12.0billion

1,800
1,600

Decrease of drug prices due tospecial drug price revisions

Net sales

1,400
1,200

(31.6)%

1,000
800

Total ¥13.3billion

FY4/17 Original plan
Decrease of drugs usage
FY4/17 Results

600

Total ¥5.5billion
400

FY4/16 Results
Difference between results
and plan : ¥(7.8)billion

200

0
May.

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

Aggregated the data from pharmacies that could receive Hepatitis C drugs’ usage data.
© 2017 AIN HOLDINGS INC. All Rights Reserved.

16

Revision of 2016

© 2017 AIN HOLDINGS INC. All Rights Reserved.

17

Progress①
Comparison of 594 pharmacies of 4 main existing companies
After

Basic

Premiums forgeneric drug
dispensing
systems

Drug use
history
management
and guidancefee
Premiums for
specific drug
management
instruction

April
2016

383.0

(¥)

ChangeApril
2017

ChangeMay
2017

Change312.3(70.7)

336.2(46.8)

337.0(46.0)

147.5

117.8

(29.7)

174.0

+26.5

177.7

+30.2

191.1

146.4

(44.7)

182.9

(8.2)

182.5

(8.6)

382.7

433.7

+51.0

439.7

+57.0

440.4

+57.7

9.6

25.3

+15.7

25.0

+15.4

24.3

+14.7

41

1

Except following

2

Over 4,000 times and over 70%
or Over 2,000 times and over 90%
or Over 4,000 times from specific hospital

3

Same group over 40,000 times / monthand over 95% or Lease contract withmedical institution

dispensing fee

Standards fordispensing
systempremiums

Points

March
2016

(31)
25
(19)
20
(15)

Basic dispensing fee 41points & Inventory
1,200 items & Home healthcare services (1case / year) & Notification of Kakaritsukepharmasists & supervising pharmacists
having operational experience for at least 5
years and enrollment for at least 1 year32

65-75%

18

Over 75%

22

Basic dispensing fee 41 points, handing overmedication notebook, patients’ visiting within
6 months

38

Except the above

50

Kakaritsuke-pharmacists instruction fee

70Specific drug management instruction

10

Items and requirements mentioned above is a part of revisions of 2016

(78.4)

Change: Compared to March 2016

Points inside of parentheses are the subtracted points

Average prescription price per a reception

Object: 594 pharmacies(AIN PHARMACIEZ, AIN MEDIO, DAICHIKU, Asahi Pharmacy)© 2017 AIN HOLDINGS INC. All Rights Reserved.

+43.9

+48.0

18

Progress②
Comparison of 200 acquired pharmacies
PointsAfter

1

Except following

41
(31)

2

Over 4,000 times and over 70%
or Over 2,000 times and over 90%
or Over 4,000 times from specifichospital

25
(19)

3

Same group over 40,000 times / monthand over 95% or Lease contract withmedical institution

20
(15)

Basic
dispensing fee

Standards fordispensing
systempremiums

Premiums forgeneric drug
dispensing
systems

Drug use
history
management
and guidancefee

Premiums for
specific drug
management
instruction

Basic dispensing fee 41points & Inventory
1,200 items & Home healthcare services (1case / year) & Notification of Kakaritsukepharmasists & supervising pharmacists
having operational experience for at least 5
years and enrollment for at least 1 year32

65-75%

18

Over 75%

22

Basic dispensing fee 41 points & Handing
over medication notebook & Patients’revisiting within 6 months

38

Except the above

50

Kakaritsuke-pharmacists instruction fee

70Specific drug management instruction

10

(¥)
March
2016

April
2016

Change

April
2017

401.4

341.7

(59.7)

346.0(55.4)

140.8

88.8

(52.0)

153.8

+13.0

127.0

103.5

(23.5)

150.0

+23.0

374.9

428.4

+53.5

432.7

+57.8

4.0

13.2

+9.2

15.3

+11.3

Items and requirements mentioned above is a part of revisions of 2016
Change: Compared to March 2016

Points inside of parentheses are the subtracted points

Average prescription price per a reception

Object: 200 pharmacies that were acquired until March 2016

© 2017 AIN HOLDINGS INC. All Rights Reserved.

(72.5)

Change+49.7

19Progress③
Comparison of 594 pharmacies of 4 main existing companies Ratio of pharmacies that receive basic dispensing fees
Basic dispensing fee1 (41points)

594

Basic dispensing fee2 (25points)

750

Basic dispensing fee3 (20points)

500
341

250

414

552
29

33
147

224

0

42

Mar. 2016

Apr.

Number of stores

Number of stores(Store)1,000594

 Ratio of pharmacies that receive standards for dispensing
system premiums(Store)
1,000
750

No premium
New premium (32points)
Old premium (12, 36points)

500

215

250

379

261

58

0

Mar.2016

Apr. 2017

333

536

Apr.

Apr.2017

 Progress of generic drugs

GE average premiums

No premiums
19.1

Premium1(18points)

14.6

16.3

Premium2(22points)

17.5

GE drugs share

18.2

18.3

750

15
122

10
457

5
0

346

(Store)
1000

245
251

500

314

366

387

202

141
66

Apr.

250

72
65

126

98

78

160
68

Mar.2016

Apr.

July

Oct.

Jan.2017

Number of stores(Point)200Mar. 2016 : Calculated by old standards of revisions of 2016
GE average premiums : Average points per reception of prescriptions
GE drug share (volume) : 74.3% (As of April 2017)
Object :594 pharmacies of main 4 companies (AIN PHARMACIEZ, AIN MEDIO, DAICHIKU, Asahi Pharmacy)© 2017 AIN HOLDINGS INC. All Rights Reserved.

20

Progress④
Comparison of 200 acquired pharmacies Ratio of pharmacies that receive basic dispensing fees
Basic dispensing fee1 (41points)
Basic dispensing fee2 (25points)
Basic dispensing fee3 (20points)

400

200
134

141

5

7
59

5
54

Mar. 2016

Apr.

Apr. 2017

195

0

400

No premium
New premium (32 points)
Old premium (12, 36points)

200

28

(Store)200

Number of stores

Number of stores(Store)200

 Ratio of pharmacies that receive standards fordispensing system premiums

104

147
172

96

53

0
Mar.2016

Apr.

Apr.2017

 Progress of generic drugs
No premiums

Premium1(18points)

Premium2(22points)

GE drugs share(Store)

20
15

12.7
10.4

11.8

12.7

14.1

15.0

10
5

86
42
72

36
69
95

0
Mar.2016

Apr.

400

200

50

66

80

92

73

61

77

73

60
60

53
55

July

Oct.

Jan.2017

Apr.

Number of stores

GE average premiums(Point)0Mar. 2016 : It is calculated by old standards of 2014 revisions
GE average premiums : Average points per reception of prescriptions
GE drug share (volume) : 70.1% (As of April 2017)
Object : 200 pharmacies that were acquired until March 2016
© 2017 AIN HOLDINGS INC. All Rights Reserved.

21

Growth Strategy© 2017 AIN HOLDINGS INC. All Rights Reserved.

22

Transition of net sales and ordinary income
Our group consistently set a growth strategy to increase net sales by new openings nationwide, tostrength the capability of pharmacies and drug and cosmetic stores, and to attract and train personnel.
We will continue to grow adjusting the changing environment in future.
 Transition of net sales and ordinary income(¥ million)

FY4/17
Net sales : ¥248.1 billion
Ordinary income : ¥15.0 billion
Profit attributable to owners of parent : ¥7.9 billion

Net sales

360,000

Ordinary income

Net sales

Non-hospital dispensing ratio(%)

70.0%

240,000

20,00016,00063.1%
180,000

12,00054.1%

120,000

8,000

39.5%

60,000

4,000

0

0
4/00

4/01

4/02

4/03

FY4/95


24,000Ordinary income

300,000(¥ million)

4/04

4/05

 Nationwide network

location Safety and efficiency in

Securing pharmacistsConstruction of new dispensing systemDispensing in drugstores

4/07

4/08

FY4/01

Store opening stores in convenient



4/06

dispensing pharmacy business Restructuring of drug andcosmetic store business© 2017 AIN HOLDINGS INC. All Rights Reserved.

4/09

4/10

4/11

FY4/06


Active new store openings andM&As

Boosting efficiency of pharmacy operation



WHOLESALE STARSExpansion of ainz &tulpe

4/12

4/13

4/14

4/15

4/16

4/17

FY4/15-FY4/16

FY4/08
 Openings large-scaledispensing pharmacies mainly
near hospitals that respond forpatient needs
 Economy of scale Recruting and training
pharmacists
 Active use of M&As

4/18 (FY)Plan

Store opening strategy
Active new openings and M&AsStrengthening the primary carecapabilities of dispensing pharmacies

New form of ainz & tulpe
Differentiation by original products

23

Growth Strategy
We will develop stores and human resources that are able to adapt the environmental changes byflexibly responding the system changes and ease of regulations and by openings promising storesincluding M&As.

 Top-line
Opening pharmacies in prime locations near hospitals and continuing
secure M&As by evaluation method which we considered coming
revisions for three consecutive years

 Strengthening the function of pharmacies
Strengthening the primary care capabilities of pharmacists anddispensing pharmacies, raising the operating efficiency and making
stores more profitable by responding to the environmental changes

 Recruiting and training human resources
Recruiting activity and development of human resources with theenergy of the entire company

 Growth of AINZ&TULPE
Improving the ratio of original products and gross profit by active
store openings in the metropolitan area and by strengthening ourbrand equity© 2017 AIN HOLDINGS INC. All Rights Reserved.

24Top-Line
We opened 218 stores including M&As in FY4/17, and M&A EV/EBITDA ratio became 5.50 times in dispensing pharmacy
business. We forecast the number of stores in the end of FY4/18 will be 1,189 by opening 108 stores and closing 37 stores.

 Total number of stores

1,118 (Dispensing pharmacy:1,066 Drug and cosmetic store:52)
 PlanFY4/17

As ofJune 8Plan

Results

Plan

Results

47
73

27
182

34
66

5
2

6

9

8

0

126

218

108

7

Dispensing
pharmacy

-

24

31

5

Drug andCosmetic
store

-

9

6

0

-

33

37

5

Organic

Dispensing
pharmacy

M&A

Drug and Cosmetic store

Total

Close

FY4/18

Total of closed stores

Total number of stores includes a franchise store

Hokkaido
122

Tohoku143
Kanto,Koshinetsu
456

Hokuriku,Tokai,Kinki
260
Kyusyu,others
137

62 properties are secured

End-FY4/17

 Transition of dispensing pharmacies
FY4/06
Organic
16
17
M&A
5.30
EV/EBITDA ratio
8
Close
218
No. of total stores

FY4/07
14
18
7.54
3
247

FY4/08
23
91
4.82
5
356

FY4/09
24
3
2.21
8
375

FY4/10
21
3
3.45
2
397

FY4/11
18
35
5.60
5
448

FY4/12
27
28
5.51
9
494

EV/EBITDA ratio=EV(Purchase price)/EBITDA(Operating income + Depreciation and amortization)© 2017 AIN HOLDINGS INC. All Rights Reserved.

FY4/13
38
38
5.09
10
560

FY4/14
36
26
3.94
6
616

FY4/15
40
119
4.77
21
754

FY4/16
32
110
5.37
15
881

FY4/17
27
182
5.50
24
1,066

No. of stores include temporary closed stores from FY4/11
25

Strength of pharmacy’ function①
In “Pharmacy’s vision for patients (by the Ministry of Health, Labor and Welfare on October 23th, 2015)”, theideal of the primary care pharmacists and dispensing pharmacies is stated. Also, based on medium- and longterm perspective, the way to change the present pharmacies to the primary dispensing pharmacies isshowed.
Healthcare support pharmacies

Function of advanced
pharmaceutical management

Function of Healthcare support

 Contribution for prevention of patients’ deceaseand healthcare support

 Correspondence for the needs of advanced
pharmaceutical management

Primary care pharmacists and dispensing pharmacies
24-hour support & Home-based
healthcare

Integrated and continuous
management of drug usage

 Continuous check of drugs’ effects and side effects
 Prevention of over-prescription, double medicationand interactions

 Support for patients in the night and holidays& Home-based healthcare

Cooperation with medical institutions
Inquiry to doctors about possible prescription
errors & Suggestion about prescription drugs
 Feedback to doctors about side effects and drug usage© 2017 AIN HOLDINGS INC. All Rights Reserved.



Giving advice to patients about drugs and theirhealthcare Recommendation to see doctors at medical institutions

26

Strength of pharmacy’ function②
In “Pharmacy’s vision for patients (by the Ministry of Health, Labor and Welfare on October 23th, 2015)”, theideal of the primary care pharmacists and dispensing pharmacies is stated. Also, based on medium- and longterm perspective, the way to change the present pharmacies to the primary dispensing pharmacies is showed.

Primary care pharmacists and dispensing pharmacies
 Primary care pharmacists
1,358 pharmacists (As of May 2017) The number of calculation of primary carepharmacists’ instruction fees Primary care dispensing pharmacies
762 pharmacies (As of May 2017)

 Consent form of primary care pharmacists

 Drug information provision reports
Pharmacists provide doctors with the reports about
conditions and effects of patients who are in longterm medical treatment
700

62,958 cases (April 2017, monthly basis)
119,984 cases (Total until April, 2017)
120,000

No. of calculation ofprimary carepharmacists’instruction fee

100,000

No. of consent forms
of primary carepharmacists

119,984 70,000

60,00050,00062,95880,00040,000No.of drug information provision reports

600

60,00030,000500
400

40,00020,00020,00010,000

300
200
100

0

0
Mar.
2016

May.

Jul.

Sep.

© 2017 AIN HOLDINGS INC. All Rights Reserved.

Nov.

Jan.
2017

Mar. Apr.

0

May.
2016

Jul.

Sep. Nov.

Jan. Mar. Apr.
2017

27

Strength of pharmacy’ function③
In “Pharmacy’s vision for patients (by the Ministry of Health, Labor and Welfare on October 23th, 2015)”, theideal of the primary care pharmacists and dispensing pharmacies is stated. Also, based on medium- and longterm perspective, the way to change the present pharmacies to the primary dispensing pharmacies is showed.

Healthcare support pharmacies
Healthcare support pharmacies are actively working on the maintenance of
supply system of pharmacist's intervention required medicines, Non smoking
guidance with medical institutions that mainly handle prescriptions and local
activities, etc.
 Local activity
In order to support local residents’ health maintenance and healthpromotion, we held consultation meetings about drugs, events ofdementia’s early detection and various study groups.

Seminar about infection prevention

 No. of pharmacists who attend the lectureof healthcare support pharmacies
130 pharmacists (As of June,2017)

Local NST & Study group of bedsore

 No. of stores that pharmacists who finished the lecture are located77 stores (As of June,2017) No. of healthcare support pharmacies
21 stores (As of June,2017)

50 stores (Target: April,2018)
Local NST & Study group of swallowing© 2017 AIN HOLDINGS INC. All Rights Reserved.

28

Strength of pharmacy’ function④
In “Pharmacy’s vision for patients (by the Ministry of Health, Labor and Welfare on October 23th, 2015)”, theideal of the primary care pharmacists and dispensing pharmacies is stated. Also, based on medium- and longterm perspective, the way to change the present pharmacies to the primary dispensing pharmacies is showed.

Function of advanced pharmaceutical management
As well as starting the development of specialist pharmacist with universities
and medical institutions, we continuously conduct trainings for all pharmacists
using web conference system Approach in concert with Fujita Health University HospitalContents

Outsource of cancer specialist pharmacists’ training

Place

Fujita Health University Hospital (Toyoake-shi, Aichi)

Period5 years

Number ofpharmacists

2 pharmacists

Start period

March, 2017～Study group of advanced pharmaceuticalmanagement using web conference system

Approach in concert with Hokkaido University & Social Medial Corporation Caress Sapporo
Contents

Advanced medical simulation training by pharmacists in
hospitals and dispensing pharmacies

Place

Caress Sapporo Clinical Simulation Center (Sapporo-shi,
Hokkaido)

Period2 daysNumber ofpharmacists

Planning about 100 pharmacists in a year

Start period

From June, 2017

© 2017 AIN HOLDINGS INC. All Rights Reserved.

Cancer specialist pharmacists’ training in
University Hospital

Advanced medical simulation training
29

PJ－AIN GROUP
We started BPR for business improvement from 2009. We aim to reduce ¥1,000 million in BPR2017. Also, by
Pharmacy-led project, ¥6,455 million of stock money amount was adjusted and inventory days became 16.4 days.
2017 (Year)

2009～2016 (Year)

BPR2017
Target : Cost reduction ¥1,000 million

BPR

Total business impact ：¥3,060 million
Unificationof group’s
vectorPharmacy-led projectGrouppurchasing

Triple3+1 Establishment oftarget• 3 minutes dispensing• 3 days stock• 30 prescriptions handling• Reduction of turnover rates

•
•
•
•
•

・Adjustment of unused stock・Office-led transfer of drugs
between stores

Release of “New・AIN’s
Declaration”

・In-house training
・Area manager meeting
・Monthly branch office meeting
・Unification of technic of check•

Pharmacy-led project
Redefining M&A evaluation and standard
Structuring the role of ideal pharmacies
Personnel relocation
Recruitment activity with the energy of the entire
company
Cost reduction by reconsideration of purchasing Adjusted stock money amount in pharmacies(drug price base) and transition of inventory days
Stock money amount in all stores

Adjusted stock money amount

Inventory days

End of April, 2017
Estimated stock money amount (Day)¥16,339million

25.0

15,00013,000

6,455

11,000

20.6

9,000

2,331

7,000
5,000

8,356

7,141

Apr.
2013

Apr.
2014

Jul.

Oct.

Jan.
2015

3,195

4,897

18.2

16.3

8,401

8,651

Apr.

Jul.

Oct.

Jan.
2016

Apr.

20.0
16.4
9,884
Jul.

Oct.

Jan.
2017

Inventory days

Stock money amount(¥ million)
17,00015.0

Apr.

Estimated stock money amount：Calculated by stock money amount per store at end of April 2013 and the number of running stores
Adjusted stock money amount：Estimated stock money amount－Stock money amount in all stores© 2017 AIN HOLDINGS INC. All Rights Reserved.

30

Recruiting of Pharmacists
It is necessary to recruit pharmacists to fulfill the role of pharmacy that government requires. Our group’s strength isrecruiting of new graduates and training of human resources. In April 2017, new 481 employees (pharmacists : 307,
general staff : 174) joined our company.

 The transition of No. of national examination passers and new qualified pharmacists in AIN Group(People)

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

No. of newly qualified
pharmacists hired in AIN
174
284
259
97
42
189
251
251
229
375
307
350
Group
No. of pharmacists’
9,154 10,487 11,301
3,787
1,455
8,641
8,929
7,312
9,044 11,488
9,479
national examination（75.6%） （76.1%） （74.4%） （56.4%） （44.4%） （88.3%） （79.1%） （60.8%） （63.2%） （76.9%） （71.6%）（ - ）passers (Pass rate)
Rate of newly qualified
1.9%
2.7%
2.3%
2.6%
2.9%
2.2%
2.8%
3.4%
2.5%
3.3%
3.2%
pharmacists hired in AIN（ - ）（7.0%）（8.8%）（7.5%）（ - ）（ - ）（5.7%）（7.0%）（8.0%）（8.0%） （11.7%）（9.5%）
Group
Estimates : based on the result in AIN Group, and data from the Ministry of Health, Labour and Welfare, Council on Pharmaceutical Education.

(People)600
General Staffs

500

Pharmacists

375

No.of newly-hired
employees

307

350

400
300

284

251
259

200
159

0

189

174

100

229
251

97
39

44

32

44

78

42
27

47

53

28

06

07

08

09

10

11

12

13

14

© 2017 AIN HOLDINGS INC. All Rights Reserved.

93

173

174

160

15

16

17

18 (Year)Plan
31

FY4/18 Plan (Dispensing Pharmacy Business)(¥ million)
Net sales

Gross profit% of net sales
SG&A
expenses% of net sales

FY4/17
results

FY4/18plan

YoYchange221,801 237,900 +16,099
32,090 34,280 +2,190
14.5

YoY
change(%)+7.3+¥1.3 billion
Technical fees
Net salesof existing
stores etc.
+¥7.8 billion
New 100 storesopenings+¥14.8 billion
Full contribution ofprevious year’s
openings+6.8+16.1 billion
+7.3%

14.4

13,432 14,480 +1,048
6.1

18,658 19,800 +1,142

Segment
income% of net sales

19,110 20,200 +1,090

8.4

8.6

+7.8

6.1

Operatingincome% of net sales

FY4/17
results

FY4/18plan Segment income
+6.1

8.3

+5.7

8.5

¥(1.4) billion+¥3.0 billion Increase of labor
Calculation of costs by recruitment
technical fees, of 307 pharmacists
Use of WSS¥(2.1)billion
Increase ofoperating costby increase of ¥(0.7)billion+¥2.3 billion
Revisions of
net sales
Increase of net sales
2018 etc.

Figures in the table are rounded down
Decrease of hepatitis C： Impact of hepatitis C drug prices’ reduction or
decrease of hepatitis C drugs’ usage© 2017 AIN HOLDINGS INC. All Rights Reserved.

¥(4.1)billion
Decrease of hepatitis C
Impact of revisions of 2018
Promotion of GE drugs, etc¥(3.7) billion
Close of unprofitable
stores

FY4/17
results+¥1.1billion+5.7%
FY4/18plan
32

Vs Original Plan （Drug and Cosmetic Store Business）
Net sales increased 2.4% year on year by new store openings and sales growth of flagship stores. The
ratio of gross profit to net sales year on year has improved by the active development of original products,
but segment income became ¥(866) million due to the increase of sales promotion expenses, etc.
(¥ million)

FY4/16
results

FY4/17
original plan

FY4/17
results

YoYchange

+499

+2.4

(5.0)

+387

+5.3

(8.7)

+652

+8.2

(1.3)

(265)

‐

‐

(407)

‐

‐

Gross profit

20,884
7,236

22,5008,350

21,383
7,623% of net sales

34.6

37.1

35.6

7,931

8,700

8,583

38.0

38.7

40.1

(694)

(350)

(959)

-

-

-

(459)

(224)

(866)

-

-

-

52

58

52

Net sales

SG&A
expenses% of net sales

Operatingincome% of net sales

Segment
income% of net sales

Number ofstoresYoYchange(%)

0

Vs plan(%)(0.0) (10.3)

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: (0.3)% YoY© 2017 AIN HOLDINGS INC. All Rights Reserved.

Average spending per customer: +2.7% YoY
33

Results Verification①(Drug and Cosmetic Store Business）
 YoY+¥0.7billion
New 9 storesopenings+¥1.4billion
Full contributionof previous year’s
openings+¥0.21billion¥(1.6)billion
Close ofunprofitable
stores, etc

Improvement ofgross profit+¥0.5billion+2.4%

FY4/16
Net sales

FY4/17
Net sales+¥0.18billion
Increase of net sales

FY4/16
Ordinary
income¥(0.79)billion
Store openings
cost, etc

© 2017 AIN HOLDINGS INC. All Rights Reserved.

¥(0.4)billion
FY4/17
Segment
income34

Results Verification②(Drug and Cosmetic Store Business）
 Vs Original plan

FY4/17
Originalplan
Net sales¥(0.4)billion
Decrease oftax-free sales¥(0.67)billion¥(1.1)billion(5.0)%

Openings behindschedule
Close of
FY4/17
unprofitable stores

Net sales

FY4/17
Original
plan
Ordinary
income¥(0.4)billion
Non-achievementof net sales¥(0.2)billion
Sales promotion¥(0.6)billion
costs of new
openings, etc

FY4/17
Segment income© 2017 AIN HOLDINGS INC. All Rights Reserved.

35

Store opening strategy
In FY4/17, we tried to improve customer's degree of recognition of ainz & tulpe by opening
new stores in the metropolitan area.
IKEBUKUROSEIBUOMIYA MARUIKAWAGUCHI CASTYTOKOROZAWA STATION

Ikebukuro
KITASENJU MARUI
Opened December 9, 2016

FRENTE MINAMIOSAWA

Opened on March 16, 2017
KEIO DEPARTMENT STORE SHINJUKU Shinjuku
CHOFU

MARUI KINSHICHOSHINJUKUHIGASHIGUCHITOKYO STATIONTokyo

HARAJUKU QUESTLIPS and HIPS TOKYU PLAZA OMOTESANDO HARAJUKI
Opened on April 21, 2017

Shibuya

GINZA NAMIKI DORI
Opened on November 7, 2016

SHIBUYA CENTER GAIJIYUGAOKAMINATO MIRAI

Opened on December 15, 2016 Yokohama
Colette Mare SAKURAGICHO© 2017 AIN HOLDINGS INC. All Rights Reserved.

YOKOHAMA PORTAMARUI CITY YOKOHAMA
Yokohama JOINUS
Opened on April 12, 2017

Opened on March 15, 2017
MARRONNIER GATE GINZA
36

Establishment of store opening format
We will increase store operation efficiency in existing stores by setting ainz & tulpe IKEBUKURO SEIBU as a goodmodel whose earning rate improved after renovation. Also, the requests for new openings are increased after
openings of ainz & tulpe SHINJUKU HIGASIGUCHI, and proper cost management became possible. We are readyto make stores profitable in early stage.

 ainz & tulpe IKEBUKURO SEIBU’s transition of net sales and operating margin after renovation

Net sales

15.0%

Renovation period
for about 2 months

150

Net sales

Operating margin
10.0%
5.0%

100

0.0%

50

-5.0%

0
Apr. 2014-10.0%
Oct. 2014

Apr. 2015

Oct. 2015

Apr. 2016

Oct. 2016

Operating margin(¥ million)
200

Apr. 2017

 ainz & tulpe KEIO DEPARTMENT STORE SHINJUKUNet sales

Vs plan +35.3％
Operating income
Making profits in 2 months
after opening© 2017 AIN HOLDINGS INC. All Rights Reserved.

37

FY4/18 Plan (Drug and Cosmetic Store Business）

FY4/17
results

FY4/18plan

YoYchange(¥ million)
Net sales

Gross profit% of net sales

 Net sales+¥0.6billion
Existing stores¥(1.1)billion+¥1.1billion
Close of unprofitable
storesNew 8 storesopenings

21,383 23,600 +2,217 +10.4
7,623
35.6

8,770 +1,147 +15.0
37.2

SG&A expenses% of net sales

8,583

9,270

40.1

39.3

Operatingincome% of net sales

(959)

(500)

‐

‐

Segment
income% of net sales

YoYchange
(%)

(866)

(370)

‐

‐

Figures in the table are rounded down

© 2017 AIN HOLDINGS INC. All Rights Reserved.

＋¥1.6billion
Full contributionof previous
year’s openings+2.2billion+10.4%

FY4/17
results+683

FY4/18Plan+8.0
 Segment income

+459

+496

‐

‐

+¥0.2billion
Adjustment ofoperation cost+¥0.5billion+¥0.3billion
Expansion oforiginal products

FY4/17
results

FY4/18Plan

39

FY4/18 Plan (Consolidated)
In FY4/18, we expect that net sales increase 7.8% year on year by 100 new store openings in dispensing
pharmacy business and 8 new store openings in cosmetic and drug store business. We also expect that
ordinary income increase 12.7% year on year by promoting wider use of generic drugs, calculating technicalfees and increase of store operation efficiency.

FY4/17 results

FY4/18 planYoY change Net sales

248,110+7.8%

 Gross profit

42,092

 Operating income

14,563

 Ordinary income

15,080 Profit attributable to

7,949

267,500
46,53016,60017,0008,900
280.69(¥ million)

owners of parent

 Earnings per
share(¥)

250.71+10.5%+14.0%+12.7%+12.0%+12.0%

Figures in the table are rounded down
© 2017 AIN HOLDINGS INC. All Rights Reserved.

40

Supplementary Materials© 2017 AIN HOLDINGS INC. All Rights Reserved.

41

FY4/18 Plan (Consolidated) Net sales
FY4/17
results

FY4/18plan

YoYchange(¥ million)

YoYchange(%)

Net sales

248,110 267,500 +19,390+7.8

Gross profit% of net sales

42,092 46,530 +4,438

+10.5

SG&A
expenses% of net sales

17.0

14,563 16,600 +2,037

Ordinary
income% of net sales

15,080 17,000 +1,920
6.1

+8.7

New openings

Close ofunprofitable stores¥(4.1)billion
Decrease ofhepatitis C
Promotion of GE
drugs, etc.
Revisions of 2018+¥16.4 billion
Full contributionof previous year’s
openings

7.3%
UP+¥19.4 billion+7.8%

FY4/17
results

FY4/18Plan¥(0.6)billion
Revision of 2018

+14.0

6.2

+12.7

¥(3.5)billion+¥3.9 billion
Expenses, Labor costs&
Improvement of expenses in dispensing
gross profit
pharmacy business,
SG&A expenses,etc

6.4

Figures in the table are rounded down
Decrease of hepatitis C： Impact of hepatitis C drug prices’ reduction or
decrease of hepatitis C drugs’ usage© 2017 AIN HOLDINGS INC. All Rights Reserved.

+¥8.9 billion¥(4.8)billion

 Ordinary income

11.2

Operatingincome% of net sales

5.9

Existing storesTechnical fees, etc

17.4

27,529 29,930 +2,401
11.1+¥3.0 billion+¥2.2 billion
Increase of net
sales
FY4/17
results¥(0.1)billion
Others+1.9 billion+12.7%
FY4/18Plan
42

Dispensing Fee Revisions of 2016
BeforeExcept following

Points41(31)

After
1

Except following

Points41(31)

Over 4,000 times and over 70%
Basic dispensing fee

2Over 4,000 times and over 70%
Over 2,500 times and over 90%

3Standards for dispensing

healthcare support

system premiums

24-hour own support, result of homehealthcare services

12

Same group over 40,000 times / month and over 95%
or Lease contract with medical institution

20(15)

Basic dispensing fee 41points & Inventory 1,200 items & Home
healthcare services (1 case / year) & Notification of Kakaritsukepharmasists & supervising pharmacists having operational36

25(19)or Over 4,000 times from specific hospital

25(19)

24-hour rotation support, homeor Over 2,000 times and over 90%

32

experience for at least 5 years and enrollment for at least 1 year

Premiums for generic drug

55%-65%1865-75%

18

dispensing systems

Over 65%

22

Over 75%

22

Except following

41

No notebooks

34

Drug use history
management andguidance fee

Premiums for specific drug
management instruction

Specific drug management instruction

Items and requirements mentioned above is a part of dispensing fee revisions

4

Basic dispensing fee 41 points, handing over medication
notebook, patients’ visiting within 6 months

38

Except the above

50

Primary care pharmacists instruction fee

70Specific drug management instruction

10

Points inside of parentheses are the subtracted points

Condition for calculating primary carepharmacists instruction fee

Operational experience for at least 3 years, Working over 32 hours per week, Belongs to pharmacy over 6 months,
Certified pharmacists, Participation of community activity

Opetation of primary care pharmacists

Guidance for drug usage, Integrated and continuous management of patients’ information, 24-hour support,
Management of surplus drugs, home-based healthcare© 2017 AIN HOLDINGS INC. All Rights Reserved.

43

Company Profile
Trade nameAIN HOLDINGS INC.

Representative

Kiichi Otani, President and Representative Director

Established

August 1969

Market capitalization¥258,932 million As of June 8, 2017

Net sales andoperating income

Net sales: ¥248,110 million Operating income: ¥14,563 million

As of April 30, 2017

Dispensing Pharmacy : ¥221,801 million, Drug and Cosmetic Store : ¥21,383 million
Others : ¥4,925 million
As of April 30, 2017
9,774 (including pharmacists：4,518)
As of April 30, 2017

Sales composition
Number of employees

Group companies《Dispensing pharmacy》 AIN PHARMACIEZ Inc. and other 78 companies.
《Staffing services》 《Consulting services》 MEDIWEL Corp., Medical Development Co., Ltd. etc《Generic drug wholesales》 WHOLESALE STARS Co., Ltd
As of April 30, 2017

Number of stores

1,118 (1,066 dispensing pharmacies, 52 drug and cosmetic stores)

As of April 30, 2017

FY4/17 Consolidated net sales
Drug and Cosmetic Store
8.6%© 2017 AIN HOLDINGS INC. All Rights Reserved.

¥248,110 million

Dispensing Pharmacy
89.4%
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Comparison to other companies
(%)
8.0

7.0

6.0

B company

Operating margin

C company
5.0
A company AIN HOLDINGS

E company

Net sales：¥248,110 million

4.0

Operating margin：5.9%
Market capitalization：¥258,932 million

3.0

D company

2.0

1.0

0.0
0

40,00080,000120,000

160,000

200,000

240,000(¥ million)

Net sales
Based on each company’s summary of financial statement for FY 3/17 (Our company: FY4/17)
Size of circle is proportional to market capitalization on June 8, 2017
© 2017 AIN HOLDINGS INC. All Rights Reserved.

45

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.

© 2017 AIN HOLDINGS INC. All Rights Reserved.

46