FY4/24 1Q
IR PRESENTATION

September 2023

Results Overview© 2023 AIN HOLDINGS INC. All Rights Reserved.

1

Consolidated P/L
Net sales increased 16.2% YoY and 5.1% against the plan due to the easing of restrictions on
outpatient visits following the downgrade of COVID-19 to a category-5 infectious disease and theeasing of mobility restrictions. Ordinary profit increased 25.6% YoY and 60.0% against the plan due toincrease of sales.
YoY
FY4/23 1Q FY4/24 1Q
FY4/24 1Q
YoYVs plan(%)
resultsplan
resultschange change(%)（¥ million）

Net sales

81,47090,05594,654 +13,184+16.2+5.1

Gross profit

11,643

11,942

13,199+1,556

+13.4

+10.5

14.3

13.3

13.9

8,889

9,683

9,588+699

+7.9

(1.0)

10.9

10.8

10.1

2,753

2,259

3,610+857

+31.1

+59.8

3.4

2.5

3.8

3,090

2,425

3,881

+791

+25.6

+60.0

3.8

2.7

4.1

1,704

1,000

2,140+436+25.6 +114.0% of net sales

2.1

1.1

2.3

Earnings pershare(¥)

48.54

28.49

60.93

+12.39+25.5 +113.9% of net sales

SG&A expenses% of net sales

Operating profit% of net sales

Ordinary profit% of net sales

Profit attributable toowners of parentFigures in the table are rounded down
FY4/23 1Q: Reflect finalized figures of provisional accounting treatment related to business combination© 2023 AIN HOLDINGS INC. All Rights Reserved.

2

Dispensing Pharmacy Business (Consolidated)
Net sales increased 16.4% YoY and 4.9% against the plan due to the easing of restrictions on
outpatient visits following the downgrade of COVID-19 to a category-5 infectious disease and theeasing of mobility restrictions. Segment profit increased 14.7% YoY and 24.7% against the plan due
to increase of sales.

FY4/24 1QplanNet sales

72,48280,44084,405 +11,923+16.4+4.9

Gross profit

8,328

8,362

9,349

+1,021+12.3

+11.8

3,840

4,160

4,150+310+8.1

(0.2)

4,487

4,202

5,198+711

+15.8

+23.7

4,732

4,355

5,429+697

+14.7

+24.7

1,210

1,217

1,215+5+0.4(0.2)（¥ million）% of net sales

SG&A expenses% of net sales

Operating profit% of net sales

Segment profit% of net sales

Number ofpharmacies

11.5
5.3
6.2
6.5

10.4
5.2
5.2
5.4

FY4/23 1Q
results

YoYchange

FY4/23 1Q
results

YoYchange(%)

Vs plan(%)

11.1
4.9
6.2
6.4

Figures in the table are rounded down
FY4/23 1Q: Reflect finalized figures of provisional accounting treatment related to business combination© 2023 AIN HOLDINGS INC. All Rights Reserved.

3

Cosmetic and Drug Store Business (Consolidated)
Net sales up 21.8% YoY and 8.5% against the plan because customer numbers were firm amid a
recovery in mobility for both domestic shoppers and overseas visitors. Segment profit increased
332.9% YoY and 129.0% against the plan due to increase of sales.
YoYchange

YoYchange(%)

7,412+1,326+21.8+8.5

2,571

2,855+610+27.2

+11.0

2,098

2,261

2,149+51+2.4(5.0)

146

310

706+560 +383.6 +127.7

164310710+546 +332.9 +129.0

797878

FY4/23 1Q
results

FY4/24 1Q
planFY4/24 1Q
results

Net sales

6,086

6,830

Gross profit

2,245（¥ million）% of net sales

SG&A expenses% of net sales

Operating profit% of net sales

Segment profit% of net sales

Number ofstores

36.9
34.5

2.4
2.7

37.6
33.1
4.5
4.5

Vs plan(%)

38.5
29.0
9.5
9.6

(1)

(1.3)

0.0

Figures in the table are rounded down

© 2023 AIN HOLDINGS INC. All Rights Reserved.

4

Consolidated B/S
Net cash became ¥39,576 million and shareholders’ equity ratio became 53.7%. We are
maintaining a sound financial structure.
End-FY4/23
AssetsCurrent assets
Cash on handand in banks

Fixed assetsGoodwill

Liabilities

98,305

46,796

133,444

46,443

Deferred
assetsTotal assets

End-FY4/24 1Q(¥ million)

AssetsCurrent assets

Current
liabilities

92,986

3,670

Cash on handand in banks

Long-term
liabilities

12,218Fixed assets

Short-term debt

5,021

Goodwill- Total net assets 126,546

Deferred
assetsLong-term debt

Total liabilities

231,750 and net assets 231,750

Net cash
Shareholders’ equity
ratio(%)

37,804
54.6

Total assets(¥ million)

Liabilities

101,400

47,373

134,246

45,611

Current
liabilities

97,840Long-termliabilities

11,189

Short-term debt

Long-term debt

3,648

3,848

- Total net assets 126,617
Total liabilities

235,647 and net assets 235,647

Net cash
Shareholders’ equityratio(%)

39,576
53.7

Figures in the table are rounded down
Net cash = Cash on hand and in banks – Interest-bearing debt
© 2023 AIN HOLDINGS INC. All Rights Reserved.

5

Assets
The balance of total assets increased ¥3,897 million from the end of the previous fiscal year
because of increase in merchandise due to a rise in inventories of COVID-19 treatments, andan increase in buildings and structures due to the new store openings.
(¥ million)
Cash on hand and in banks
Accounts receivable
Inventories
Total current assets
Buildings and structures, netLand
Total property,plant and equipment
Goodwill
Total intangible fixed assets
Investments in securities
Deferred tax assets
Deposits and guarantees
Total investments and other assets
Total fixed assets
Total deferred assets
Total assets

Figures in the table are rounded down

End-FY4/23 1Q

46,863
12,697
19,504
96,163
19,505
10,63735,75549,44954,584
2,649
6,012
23,23442,050132,390
228,553

End-FY4/23

46,796
13,24921,58698,305
21,407
10,60239,45946,44352,343
2,720
5,990
24,50741,641
133,444
231,750

End-FY4/24 1Q

47,373
12,71924,340101,400
23,336
10,481
40,11345,611
51,613
2,791
5,974
24,95042,520134,246
235,647

Change+577(530)+2,754+3,095+1,929(121)+654(832)
(730)
+71
(16)
+443
+879
+802
+3,897

Change:End-FY4/24 1Q compared with End-FY4/23

Capital expenditures (Property, plant and equipment and intangible fixed assets + Deposits and guarantees) totaled ¥2,953 million
End-FY4/23 1Q: Reflect finalized figures of provisional accounting treatment related to business combination© 2023 AIN HOLDINGS INC. All Rights Reserved.

6

Liabilities and Net Assets
Accounts payable increased ¥6,161 million due to increase in pharmaceutical inventories andnew store openings. Short-term and long-term debt decreased ¥1,195 million due torepayment of loans payable.
(¥ million)

End-FY4/23 1Q

Accounts payable
Short-term debt

59,462
4,167

End-FY4/23

58,6983,670End-FY4/24 1Q

64,8593,648

91,402

92,986

97,84011,218

5,021

3,848

18,376

12,218

11,189Total liabilities

109,779

105,204

109,029

Common stock

Total shareholders’ equity

21,89420,50078,434
118,811

21,89420,50485,963
126,362

21,89420,50485,996
126,394

Total net assets

118,774

126,546

126,617

Total liabilities and netassets

228,553

231,750

235,647

Figures in the table are rounded down

Change:End-FY4/24 1Q compared with End-FY4/23

Total current liabilities
Long-term debt
Total long-term liabilitiesCapital surplus
Retained earnings

Change＋6,161(22)＋4,854(1,173)(1,029)＋3,825＋33＋32＋71＋3,897

End-FY4/23 1Q: Reflect finalized figures of provisional accounting treatment related to business combination© 2023 AIN HOLDINGS INC. All Rights Reserved.

7

FY4/24 Plan (Consolidated)
The group forecasts net sales for the fiscal year ending April 30, 2024 increase 4.5% YoY and ordinary profit
decrease 4.5% YoY due to our plans to open 50 dispensing pharmacies and 12 cosmetic and drug stores.
（¥ million）

Net sales316,247

358,742

375,000 ＋16,258＋4.5

Gross profit

49,971

53,69855,413＋1,715＋3.2

34,832

37,69439,750＋2,056＋5.5

15,13916,004

15,663(341)(2.1)

16,041

17,06416,302

(762)

(4.5)

7,092

9,234

8,250(984)(10.7)% of net sales

2.2

2.6

2.2

Earnings pershare(¥)

201.47262.87234.84(28.03)(10.7)

55.00

60.00

60.00

--

% of net sales

SG&A expenses% of net sales

Operating profit% of net sales

Ordinary profit% of net sales

Profit attributable toowners of parent

Annual dividend (¥)

15.8
11.0
4.8
5.1

FY4/23
results

FY4/24plan

YoYchange

FY4/22
results

15.0
10.5
4.5
4.8

YoYchange(%)

14.8
10.6
4.2
4.3

Figures in the table are rounded down
© 2023 AIN HOLDINGS INC. All Rights Reserved.

8

Review© 2023 AIN HOLDINGS INC. All Rights Reserved.

9

Review (YoY)
Ordinary profit increased ¥0.8 billion due to increase of net sales in dispensing pharmacy
business and cosmetic and drug store business, etc.
Net sales

Ordinary profit¥94.6 billion +¥13.2 billion¥81.4 billion

Dispensing
Pharmacy¥72.4 billion+16.2%

Dispensing
Pharmacy¥84.4 billion■Dispensing
Pharmacy+¥12.0 billion■Cosmetic andDrug store+¥1.3 billion¥3.0 billion

Cosmetic and Drug Store Cosmetic and Drug Store¥6.1 billion¥7.4 billion

Others ¥2.9 billion

Others ¥2.8 billion

FY4/23

FY4/24© 2023 AIN HOLDINGS INC. All Rights Reserved.

+¥0.8 billion+25.6%■Dispensing
Pharmacy

Dispensing
Pharmacy

Dispensing
Pharmacy¥5.4 billion

Cosmetic and Drug Store¥0.1 billion

Administrativeexpense¥(1.8) billionFY4/23

Gross profit, etc.
+￥0.7billion■Cosmetic andDrug store
Gross profit, etc.

¥4.7 billion

Others ¥(0.0) billion■Retail shop,Others¥(0.1) billion¥3.8 billion+¥0.6 billion
Cosmetic and Drug Store¥0.7billion
Others ¥0.0 billion

Administrative
expense¥(2.3) billion

FY4/24

Decrease against profit：▲

Administrative
expense,Others¥(0.5) billion

10Strategy© 2023 AIN HOLDINGS INC. All Rights Reserved.

11

Strategy
Expansion of top-line■Dispensing Pharmacy

Plan to open 50 pharmacies（Organic 30, M&A 20）■Cosmetic and Drug Store

Plan to open 12 stores

Recruiting and training of human resources■Planning to hire 650 newly graduated pharmacists and 400 medical support staff■Make field manager system and medical supervisor system more established■Training of human resources

Reinforcing the Group’s business base
■Improving the customer services by promoting DX, official apps, etc.
■Promoting sustainable management

Expansion of AINZ&TULPE■Opening stores in prime locations and medium and long term store opening strategy© 2023 AIN HOLDINGS INC. All Rights Reserved.

12Expansion of top-line■Dispensing Pharmacy

Plan to open 50 pharmacies（Organic 30, M&A 20）■Cosmetic and Drug Store

Plan to open 12 stores

FY4/24 1Q Results

FY4/24 Plan

DispensingPharmacies
Cosmetics andDrug stores

Dispensing
Pharmacies
Cosmetics andDrug stores

1,293

1,215
78

157
167
7:Dispensing Pharmacies

1,337

142
7112
18
1,249

163
1882172357
42：Cosmetic and drug stores© 2023 AIN HOLDINGS INC. All Rights Reserved.

13

Expansion of top-line■Dispensing Pharmacy

Plan to open 50 pharmacies（Organic 30, M&A 20）■Cosmetic and Drug StorePlan to open 12 stores

Opening■ Plan and Results

PlanResults

PlanDispensing Pharmacy

111050Organic

55653011121211623141104512M&A
Cosmetic and drug store
Total
Dispensing Pharmacy
Cosmetic and drug store

ClosureFY4/24

FY4/24 1Q

Total

202

■ Transition of dispensing pharmacies
Organic
M&A

EV/EBITDA ratio

ClosedSold

No. of total stores

FY4/18

FY4/19FY4/20FY4/21

FY4/22

FY4/23

FY4/24 1Q

252314152527

5113.9673321,029

134
4.88
5430
1,13263.71
64421,088

14
3.74
52
34
1,065

24
4.13
15
5
1,099

114
6.55
31
7
1,209

5
3.67
41
1,215

EV/EBITDA ratio=EV(Purchase price)/EBITDA(Operating income + Depreciation and amortization)© 2023 AIN HOLDINGS INC. All Rights Reserved.

14

Recruiting and training of human resources■Planning to hire 650 newly graduated pharmacists and 400 medical support staff■Make field manager system and medical supervisor system more established■Training of human resources

In April 2023, new 543 pharmacists has joined our group. We aim to hire, new 650
pharmacists in fiscal 2024. As of April 30,2023, the group has 6,331 pharmacists out of14,147 employees.
（People）（People）

Pharmacists
4,547

4,099

600

Medical support staff
4,742

5,004

No. of student applications
5,267
5,234

6,000
5,000
4,000

400

3,000

200
257

163

660

613

560
215

240

543

650
346

400

2,000

No. of student
applications

No. of newly hired
students

800

1,000

213

002019© 2023 AIN HOLDINGS INC. All Rights Reserved.

2020

2021

2022

2023

2024 （Plan）（Year）

15

Expansion of AINZ&TULPE■Opening stores in prime locations and medium and long term store opening strategy

AINZ & TULPE
plan to open in FY4/24

12stores(Tentative) COCONO SUSUKINO(Plan to open in Nov. 2023 )Tokyo(Plan to open in Feb. 2024 )Kanagawa（ Plan to open in Sep. 2023 ）© 2023 AIN HOLDINGS INC. All Rights Reserved.

COCOLIA TAMA CENTER(Opened in June 2023 ）16

FY4/24 Plan (Consolidated)
The group forecasts net sales for the fiscal year ending April 30, 2024 increase 4.5% YoY and ordinary profit
decrease 4.5% YoY due to our plans to open 50 dispensing pharmacies and 12 cosmetic and drug stores.
（¥ million）

Net sales

316,247

358,742

375,000 ＋16,258＋4.5

Gross profit

49,971

53,69855,413＋1,715＋3.2

34,832

37,69439,750＋2,056＋5.5

15,13916,004

15,663

(341)

(2.1)

16,041

17,06416,302(762)

(4.5)

7,092

9,234

8,250(984)(10.7)% of net sales

2.2

2.6

2.2

Earnings pershare(¥)

201.47262.87234.84(28.03)(10.7)

55.00

60.00

60.00

--

% of net sales

SG&A expenses% of net sales

Operating profit% of net sales

Ordinary profit% of net sales

Profit attributable toowners of parent

Annual dividend (¥)

15.8
11.0
4.8
5.1

FY4/23
results

FY4/24plan

YoYchange

FY4/22
results

15.0
10.5
4.5
4.8

YoYchange(%)

14.8
10.6
4.2
4.3

Figures in the table are rounded down
© 2023 AIN HOLDINGS INC. All Rights Reserved.

17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/corporate/
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 beguaranteed and actual results of operations may differ from those projected.

© 2023 AIN HOLDINGS INC. All Rights Reserved.

18