FY4/21 2Q
IR PRESENTATION

December 2020

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

1

Consolidated P/L
Net sales decreased 0.3% YoY and 0.9% against the plan due to the prolonged impact of the COVID-19,
despite the contribution of 15 stores opened(including M&A) in this fiscal year and store opened inprevious year. Ordinary income declined 48.4% YoY due to net sales lower than forecast and up 1.3%
against the plan due to reduction of administrative expense.
(¥ million)

Net sales
Gross profit% of net sales

SG&A expenses% of net sales

Operating income% of net sales

Ordinary income% of net sales

Profit attributable toowners of parent

FY4/20 2Q
results

FY4/21 2Q
results

YoYchange(499)
145,851 146,630 145,352
23,66022,08021,435 (2,225)

YoYchange(%)

Vs plan
(%)

(0.3)

(0.9)

(9.4)

(2.9)

16.2

15.1

15,30517,80017,508+2,203 +14.4

(1.6)

8,354

4,280

3,927 (4,427) (53.0)

(8.2)

8,762

4,460

4,517 (4,245) (48.4)

+1.3

4,622

2,400

2,630 (1,992) (43.1)+9.6

130.4767.74

74.24 (56.23) (43.1)

+9.6

10.5

5.7
6.0
3.2

% of net sales

Earnings pershare(¥)

FY4/21 2Qplan

12.1

2.9
3.0
1.6

14.7
12.0

2.7
3.1
1.8

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

2

Dispensing Pharmacy Business (Consolidated)
Net sales decreased 1.9% YoY and 0.3% against the plan due to the impact of the COVID-19 outbreak.
Segment income declined 17.8% YoY due to decrease of net sales and up 0.6% against the plan due toreduction of administrative expense.
(¥ million)

Net sales
Gross profit% of net sales

FY4/20 2Q
results

FY4/21 2Q
plan

130,499 128,420
17,390 15,280
13.3

11.9

FY4/21 2Q
results

YoYchange

YoYchange(%)

Vs plan(%)

128,029 (2,470) (1.9) （0.3)
15,008 (2,382) (13.7) (1.8)
11.7

SG&A expenses

7,487

7,160

7,109

(5.0)

(0.7)

Operating income

9,902

8,120

7,898 (2,004) (20.2)(2.7)

Segment income

10,1858,320

8,370 (1,815) (17.8)

+0.6

1,106

1,087

1,070(1.6)% of net sales

5.7% of net sales% of net sales

Number ofpharmacies

7.6
7.8

5.6
6.3
6.5

5.6(378)

6.2
6.5(36)(3.3)

Figures in the table are rounded down
Segment income is adjusted to ordinary income shown on the consolidated statements of income
Prescription volume: (11.0)% YoY
Average prescription price: +10.2% YoY© 2020 AIN HOLDINGS INC. All Rights Reserved.

3

Cosmetic and Drug Store Business (Consolidated)
Net sales declined 28.3% YoY and 1.2% against the plan due to temporarily closed or shorted opening hours
at many stores, despite the group has opened 5 stores in this fiscal year. Segment loss was ¥1,014 million
due to net sales declined.
(¥ million)

FY4/20 2Q
results

FY4/21 2Q
plan

FY4/21 2Q
results

YoYchangeYoYchange(%)

Vs plan(%)

13,099
5,073

9,500
3,663

9,388 (3,711) (28.3)
3,469 (1,604) (31.6)(1.2)

SG&A expenses

4,649

4,423

4,596

Operating loss

423

Segment loss

Net sales
Gross profit% of net sales% of net sales% of net sales% of net sales

38.738.6

37.0(5.3)

(53)

(1.1)

+3.9(760)(1,127) (1,550)--442(759)(1,014) (1,456)--

60

66+5.0(4.5)

35.5
3.2

Number of stores

3.4

46.6
-

49.0
-

63+3

Figures in the table are rounded down
Segment loss is adjusted to ordinary income shown on the consolidated statements of income
Number of customers: (24.7)% YoY
Average spending per customer: (4.8)% YoY© 2020 AIN HOLDINGS INC. All Rights Reserved.

4

Consolidated B/SNet cash became ¥40,537 million and shareholders’ equity ratio became 56.0%. We are maintaining asound financial structure even during the COVID-19 outbreak.
(¥ million)(¥ million)

End-FY4/21 2Q

End-FY4/20
AssetsCurrent assets
Cash on hand andin banks

Fixed assets

AssetsLiabilities

87,802 Current liabilities
46,321

105,632

74,700

Short-term debt
Lease obligations

3,642
193

Long-term
liabilities

7,747

105,514

Short-term debt
Lease obligations

4,694
137

Long-term
liabilities

14,526Long-term debt
Lease obligations

9,165
82

111,003

Deferredassets-Total net assets111,719

193,451

Total assets

199,521

Total liabilities
and net assets

199,521Long-term debt
Lease obligations

2,432
154

Deferredassets

15

Total net assets

193,451

Total liabilities
and net assets

Shareholders’ equity
ratio(%)

Fixed assets

54,61673,27540,56342,123

Net cashCash on hand andin banks

94,006 Current liabilities

Goodwill

Goodwill

Total assets

Current assets

Liabilities

39,89957.3

Net cash
Shareholders’ equity
ratio(%)

40,53756.0

Figures in the table are rounded down
Net cash = Cash on hand and in banks – Interest-bearing debt (Long-and short-term debt + Lease obligations)© 2020 AIN HOLDINGS INC. All Rights Reserved.

5

Assets
The balance of total assets increased ¥6,070 million from the end of the previous fiscal year due toincrease of cash on hand and in banks.
(¥ million)

End-FY4/20 2Q

End-FY4/20

End-FY4/21 2Q

Change44,441
14,932
14,43984,23016,55810,658415

46,321
13,653
15,32287,802
16,60910,960272

54,616
11,953
14,79694,006
16,225
10,409166+8,295(1,700)(526)+6,204(384)(551)(106)

30,90130,87430,169(705)

43,1196
45,761
2,096
4,260
15,401

42,123
5
44,916
2,295
4,211
19,14440,563
3
43,715
2,335
4,315
19,493(1,560)(2)(1,201)
+40
+104
+349

26,836

29,841

31,629+1,788

Total assets

103,49937
187,767

105,632
15
193,451

105,514
199,521(118)(15)+6,070Figures in the table are rounded down

Change:End-FY4/21 2Q compared with End-FY4/20

Cash on hand and in banks
Notes and accounts receivable
Inventories
Total current assets
Buildings and structures,netLandLease assets
Total property,plant andequipment
Goodwill
Lease assets
Total intangible fixed assets
Investments in securities
Deferred tax assets
Deposits and guarantees
Total investments and otherassets
Total fixed assets
Total deferred assets

Capital expenditures (Property, plant and equipment and intangible fixed assets + Deposits and guarantees) totaled ¥3,541 million© 2020 AIN HOLDINGS INC. All Rights Reserved.

6

Liabilities and Net Assets
The balance of liabilities increased ¥5,355 million from the end of the previous fiscal year due to increaseof long-term debt for investment purpose.
(¥ million)

End-FY4/20 2Q

45,6394,555
254

Accounts payable
Short-term debt
Lease obligations(1,568)+1,052(56)

73,275(1,425)

9,301
81,186

7,747
82,447

14,52687,802+6,779+5,355

106,594
106,580

111,151
111,003111,832
111,719+681+716

187,767

193,451

199,521+6,0704,079
269

Lease obligations
Total long-term liabilities
Total liabilities

21,89420,50064,200Common stock
Capital surplus
Retained earnings

Total liabilities and net
assets45,6194,694
137

Change74,700Long-term debt

Total net assets

47,187
3,642
193

End-FY4/21 2Q

71,885

Total current liabilities

Total shareholders’ equity

End-FY4/20

2,432
154

21,89420,50068,7589,165
82

21,89420,50069,439+6,733(72)+681

Figures in the table are rounded down
Change : End-FY4/21 2Q compared with End-FY4/20© 2020 AIN HOLDINGS INC. All Rights Reserved.

7

Consolidated C/F
Operating activities was ¥6,441 million due to new store opening especially focus on large-scale store.
Cash and cash equivalents at the end of the year were ample, up ¥10,257 million from the previousyear, due to proceeds from debts.

(¥ million)

FY4/20 2Q

FY4/21 2Q

Change6,024

6,441+417

Profit before income taxes

8,439

4,524(3,915)

Depreciation and amortization

1,928

2,024+96

Amortization of goodwill

2,182

2,225+43(Increase) decrease in accounts receivable(2,104)

1,818+3,922(Increase) decrease in inventories(1,530)567+2,097(Increase) decrease in other accounts receivable

336(992)(1,328)

Increase (decrease) in accounts payable765(1,668)(2,433)(4,361)(3,759)+602(3,448)(2,974)

+474

(148)

(257)

(109)

Net cash provided by financing activities(5,100)

5,702+10,802

Net increase in cash and cash equivalents(3,436)

8,385+11,821

Cash and cash equivalents at end of the year

44,05954,316+10,257

Net cash provided by operating activities

Net cash used in investing activities
Payments for purchases of property, plantand equipment and intangible fixed assets
Purchase of subsidiaries’ shares resulting
in obtaining controls

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

8

Business Value Analysis
FY4/20 2Q

FY4/20FY4/21 2Q

ChangeNet cash (¥ million)

56.7
117.0
23.76
130.472.06
3,006.46
2.5
4.4
12,46614.86(0.33)
35,282

57.3
110.4
23.27
259.11
1.92
3,130.77
4.8
8.5
24,5137.11(0.36)
39,899

56.0
129.6
49.17
74.24
2.31
3,151.54
1.3
2.4
8,176
26.74
(0.36)
40,537(0.7)+12.6+25.41(56.23)+0.25+145.08(1.2)(2.0)(4,290)+11.88(0.03)+5,255Shareholders’ value (¥ million)

220,471

214,258

259,191+38,720

Market capitalization (¥ million)

219,650

213,627

258,619+38,969

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)

Figures in the table are rounded down
Change：FY4/21-2Q compared with FY4/20-2Q
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-FY4/20 2Q ¥6,200 (End-Oct,2019), End-FY4/20 ¥6,030 (End-Apr,2020), End-FY4/21 2Q ¥7,300 (End-Oct,2020).
Net cash = Cash on hand and in banks – Interest-bearing debt (Long-and short-term debt + Lease obligations )© 2020 AIN HOLDINGS INC. All Rights Reserved.

9

Review© 2020 AIN HOLDINGS INC. All Rights Reserved.

10

Daily new COVID-19 cases across Japan
As of December 8, the number of domestic cases of the COVID-19 infection and deaths was165,410 and 2,419, respectively.
（people）
3000
Nov.24－Dec.15
Osaka and Sapporo excluded fromthe Go To Travel campaign

No.of positive cases
2500

Oct.1－Tokyo joined
the Go To Travel campaign

2000
1500
1000

Feb.28－Mar.19
Apr.7－May.25
Declaration ofDeclaration ofthe state of emergency the state of emergency
in Hokkaido
nationwide

500

Dec.9
2,811

0
16/1/20

16/2

16/3

16/4

16/5

16/6

16/7

16/8

16/9

16/10

16/11

the Ministry of Health, Labour and Welfare's Open Data on the COVID-19© 2020 AIN HOLDINGS INC. All Rights Reserved.

11

Review（YoY）
Ordinary income decreased 4.2 billion because declined net sales couldn’t absorb store opening costs andlabor costs for new employee.

Net sales¥145.8 billion

Dispensing
Pharmacy¥130.5 billion
Cosmetic andDrug Store¥13.0 billion

Ordinary income¥(0.5) billion¥145.3 billion
Dispensing
Pharmacy¥128.0 billion
Cosmetic andDrug Store
¥9.3 billion

Others ¥2.3 billion

Others ¥8.0 billion

FY4/20 2Q
results

FY4/21 2Qresults© 2020 AIN HOLDINGS INC. All Rights Reserved.

¥(4.2) billion¥8.7 billion
Dispensing
Pharmacy¥(2.5) billion

Cosmetic andDrug Store¥(3.7) billion
Retail shop+¥5.7 billion

Dispensing
Pharmacy¥4.5 billion¥10.1 billion

Dispensing
Pharmacy

Cosmetic andDrug Store¥0.4 billion¥8.3 billion

Others ¥(0.1) billion

Cosmetic andDrug Store¥(1.0) billion

Administrative
expense¥(1.7) billion

Others ¥(0.4) billion

FY4/20 2Q
results

FY4/21 2Q
results

Administrative
expense¥(2.4) billion

Declined net sales
Others¥(3.5) billion

Administrative
expense¥(0.7) billion
12Revised Plan© 2020 AIN HOLDINGS INC. All Rights Reserved.

13

FY4/21 Revised Plan (Dispensing Pharmacy Business)
The group has revised the forecast for the fiscal year ending April 30, 2021. Net sales increase
0.4% and segment income decrease 12.7% YoY due to the prolonged impact of the COVID-19.
FY4/20results(¥ million)

FY4/21
original plan

FY4/21
revised plan

263,750
34,960268,400
34,860264,800
32,400

SG&A expenses

14,664

14,400Operating income

20,295

Segment incomeNet sales
Gross profit% of net sales% of net sales% of net sales% of net sales

Number ofpharmacies

Vs original plan
YoYchange(%)
(%)

+0.4

(1.3)

(7.3)

(7.1)

14,900+1.6+3.5

20,46017,500(13.8)(14.5)

20,85020,86018,200(12.7)(12.8)

1,088

1,120

1,063

(2.3)

(5.1)

13.3

5.6
7.7
7.9

13.0

5.4
7.6
7.8

12.2

5.6
6.6
6.9

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

14FY4/21 Revised Plan (Cosmetic and Drug Store Business)
The group has revised the forecast for the fiscal year ending April 30, 2021. Net sales decrease
19.0% and segment loss of ¥2,200 million due to the prolonged impact of the COVID-19.

(¥ million)

FY4/20results

FY4/21
original plan

FY4/21
revised plan

24,701
9,753

25,0009,700

20,000
7,330

SG&A expenses

9,596

9,600

Operating loss

157

Segment loss

Net sales
Gross profit% of net sales% of net sales(19.0)(20.0)(24.8)(24.4)

9,680

+0.9

+0.8

100(2,350)--262110(2,200)--637369+9.5(5.5)

39.5% of net sales% of net sales

Number of stores

Vs original plan
YoYchange(%)
(%)

38.8
0.6
1.1

38.8

38.4
0.4
0.4

36.7

48.4
-Figures in the table are rounded down
Segment loss is adjusted to ordinary income shown on the consolidated statements of income© 2020 AIN HOLDINGS INC. All Rights Reserved.

15

FY4/21 Revised Plan (Consolidated)
The group has revised the forecast for the fiscal year ending April 30, 2021. Net sales increase
2.5% and ordinary income decrease 40.6% YoY due to the prolonged impact of the COVID-19.

（¥ million）

Net sales
Gross profit% of net sales

FY4/20results

292,615
46,861
16.0

FY4/21
initial plan

311,000
51,07016.4

FY4/21
revised plan

300,000
45,400
15.1

YoYchange (%)

Vs originalplan (%)

+2.5

(3.5)

(3.1)

(11.1)

30,79336,47036,200

+17.6

(0.7)

16,06814,6009,200(42.7)(37.0)

16,822

15,00010,000(40.6)(33.3)

9,179

5,000(45.5)(39.0)% of net sales

3.1

8,200

Earnings pershare(¥)

259.11231.46141.13(45.5)(39.0)

55.00

55.00

55.00

0.00.0

SG&A expenses% of net sales

Operating income% of net sales

Ordinary income% of net sales

Profit attributable toowners of parent

Annual dividend (¥)

10.5

5.5
5.7

11.7

4.7
4.8
2.6

12.1

3.1
3.3
1.7

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

16

Strategy© 2020 AIN HOLDINGS INC. All Rights Reserved.

17

Strategy
Expansion of Top-line■Dispensing Pharmacy■Cosmetic and Drug Storeplan to open 28 stores including M&A in 2H(38 stores in FY4/21)

plan to open 6 stores in 2H(11 stores in FY4/21)

Proper staffing■Expecting to hire new 550 pharmacists in FY4/22■Assign personnel properly and strengthening recruitment of full-time
employees who are willing to gain experiences, while discontinuing
temporary and mid-career employees

Reinforcing the Group’s business base■Promoting Sustainable Management■Securing specialized human resources with expertise in IT and logistics■Raising the operating efficiency by introducing RPA robots■Improving the customer services by enhancing official app and EC website■Logistic reform in anticipation of expansion of Top-line© 2020 AIN HOLDINGS INC. All Rights Reserved.

18

Expansion of Top-line
Dispensing Pharmacy Business■ Opening large pharmacies on top priority■ Opening one-on-one pharmacies■ Development of medical malls■ M&A（EV/EBITDA ratio up to 7 times）

Cosmetic and Drug Store Business■ Continuing to expand ainz & tulpe
Accelerate opening stores in satellite cities■ Enriching EC website© 2020 AIN HOLDINGS INC. All Rights Reserved.

19Top-line
The group opened 15 stores including M&A, and closed 33 stores during the FY4/21 2Q.
■ Total number of stores

1,133 (Dispensing pharmacy:1,070、Cosmetic and drug store:63)
FY4/21 2Q

ClosedOpening■ PlanPlan
Dispensing
Pharmacy

FY4/21Results

Revised plan

12105038

Organic

5428

16M&A

762222

Cosmetic anddrug store

551211Total

1715624913281847

25251533

2052

Dispensing

Pharmacy
Cosmetic anddrug store

Total■ Transition of dispensing pharmacies
OrganicM&A

EV/EBITDA ratio

ClosedOriginal plan

SoldNo. of total stores

FY4/13

FY4/14FY4/15

FY4/16

FY4/17

FY4/18

FY4/193836403227252314438
5.09

26
3.94

119
4.77

110
5.37

182
5.50

113.96

134
4.88

63.71

63.63

10560

61616

21
1754

15
1881

24
2
1,066

73
32
1,029

54
30
1,132

64
42
1,088

28
221,070

EV/EBITDA ratio=EV(Purchase price)/EBITDA(Operating income + Depreciation and amortization)© 2020 AIN HOLDINGS INC. All Rights Reserved.

FY4/20 FY4/21 2Q20

Expansion of ainz & tulpe
ainz & tulpe
new store opening in FY4/2111stores

Sapporo Kokusai bldg. (1/12/20)

Sendai (Planning)

Tokyu plaza totsuka（18/9/20）
Daimaru Kyoto(5/6/20)

Hibiya chanter (10/7/20)

Daimaru Umeda(5/6/20)

Hikarigaoka IMA (8/12/20)

Tachikawa (Planning)
Nagoya (Planning)

AMU PLAZA Kumamoto(Scheduled to open in April 2021）© 2020 AIN HOLDINGS INC. All Rights Reserved.

Sanste okayama（16/9/20）
21

Promoting Sustainable Management
The group established sustainability management department in FY 4/21, and sustainability
committee, chaired by the President and Representative Director, in this November. We will work on
promoting sustainable management.
■ Promotion system for sustainable management
The committee consists of the president aschairperson, senior managing director as vicechairperson, presidents of key group companies
and managers of each division as member. We willfurther strengthen our CSR and ESG activities
under the commitment of top management by
formulating the Group's sustainability promotion
policies and measures, building and developing a
promotion system, and monitoring key indicators.

Promotion system■ Strengthening Public Relations
In order to inform our stakeholders about oursustainable management initiatives, we will workon strengthening public relations, such asenhancing the information on our website andpreparing an integrated report.

Enhancing corporate website© 2020 AIN HOLDINGS INC. All Rights Reserved.

22Inquiries related to this presentation should be addressed toAIN HOLDINGS INC.
Corporate Planning Division
TEL(81)11-814-0010
FAX(81)11-814-5550
https://www.ainj.co.jp/
This document may not be reproduced or distributed to any third party without
prior approval of AIN HOLDINGS INC. This document has been prepared for
information purpose only and does not form part of a solicitation to sell orpurchase any securities. Information contained herein may be changed orrevised without prior notice. This document may contain forecastingstatements as to future results of operations. No forecast statement can be
guaranteed and actual results of operations may differ from those projected.

© 2020 AIN HOLDINGS INC. All Rights Reserved.

23