FY4/14
Results Briefing

June 5,2014

Result Overview© 2014 AIN PHARMACIEZ Inc. All Rights Reserved.

1

Consolidated P/L
The Group reported net sales of ¥170,225 million, an increase of 10.1% year on year, reflecting the opening of new
dispensing pharmacies and M&As. Ordinary income rose 2.9% to ¥10,587 million and net income increased 3.6% yearon year to ¥5,259 million.
(¥ million)

Net sales
Gross profit% of net sales

FY4/13
results

FY4/14
planYoYchange

FY4/14
results

154,560 172,000 170,225 +15,665
24,442 26,960 25,748 +1,306(1.0)+5.3(4.5)+895+6.1(0.3)+412+4.2(10.3)+295+2.9(9.1)+184+3.6(12.3)

330.08 +11.71+3.7(12.3)

15.7

15.1

14,74015,68015,635

9.5

9.1

9.2

9,701

11,280

10,113

6.3

6.6

5.9

10,292

11,650

10,587% of net sales

6.7

6.8

6.2

Net income

5,075

6,000

5,259

% of net sales

3.3

3.5

3.1

318.37376.31% of net sales

Operating income% of net sales

Ordinary income

Net income pershare(¥)

Vs plan
(%)

+10.1

15.8

SG&A expenses

YoYchange(%)

Figures in the table are rounded down

© 2014 AIN PHARMACIEZ Inc. All Rights Reserved.

2

Dispensing Pharmacy Business(Consolidated)
The dispensing pharmacy business reported net sales of ¥151,472 million, an increase of 10.3% year on year, andsegment income of ¥12,772 million, up 0.9%.

FY4/13
results(¥ million)

Net sales
Gross profit% of net sales

FY4/14
planYoYchange

FY4/14
results

137,291 152,650 151,472 +14,181
19,413 21,320 20,297+884
14.1

14.0

13.4

7,306

7,960

8,018

5.35.2

5.3

12,107

13,36012,279

8.8

8.8

8.1

12,655

13,63012,772

9.2

8.9

8.4

560

640

616

SG&A expenses% of net sales

Operating income% of net sales

Segment income% of net sales

Number of stores

YoYchange(%)

Vs plan(%)+10.3(0.8)+4.6(4.8)

+712

+9.7

+0.7

+172+1.4(8.1)+117+0.9(6.3)+56+10.0(3.7)

Figures in the table are rounded down
Segment income is adjusted ordinary income shown on the quarterly consolidated statements of income
Prescription volume:+6.8% YoY
Average prescription price:+3.3% YoY© 2014 AIN PHARMACIEZ Inc. All Rights Reserved.

3

Drug and Cosmetic Store Business(Consolidated)
The drug and cosmetic store business reported net sales of ¥17,985 million, an increase of 7.5% year on year, andsegment income of ¥23million, up 65.8%.

FY4/13
results

FY4/14plan

FY4/14
results

16,735
5,283

18,430
5,730

31.6

31.1

17,985 +1,250
5,668
+385

5,351

5,670

5,685

32.0

30.8

31.6(68)

60(17)-0.3-Segment income14150

23% of net sales

0.1

0.80.1Number of stores

616759(¥ million)

Net sales
Gross profit% of net sales

SG&A expenses% of net sales

Operating income% of net sales

YoYchange

YoYchange(%)

Vs plan
(%)

+7.5

(2.4)

+7.3

(1.1)

+334

+6.2

+0.3

+51--+9+64.3(84.7)(2)(3.3)(11.9)

31.5

Figures in the table are rounded down
Segment income is adjusted ordinary income shown on the quarterly consolidated statements of income© 2014 AIN PHARMACIEZ Inc. All Rights Reserved.

4

Consolidated B/S
The shareholders’ equity ratio improved 1.5 percentage points to 41.5%, compared with 40.0% at the end of theprevious fiscal year.
(¥ million)(¥ million)

End-FY4/13
Assets

End-FY4/14
AssetsLiabilities
Current
liabilities

45,686

Liabilities
Current
liabilities

50,349Current assets

44,334

7,483
498

Cash on hand andin banks

18,846

11,796

Fixed assets

57,048Investments insecurities

2,559

Lease obligations

8,048
1,223

1 Total net assets

38,356

Deferredassets

Total liabilities
and net assets

95,839Total assets

Net cash

1,206

Net cash

5,787Shareholders’ equityratio(%)

40.0

Shareholders’ equityratio(%)

41.5

Current assets

43,162

Cash on hand andin banks

18,460

Short-term debt
Lease obligations

Fixed assets
Investments insecurities

52,676
2,789

Deferredassets

Total assets

95,839Long-term
liabilities
Long-term debt

Lease obligations

6,535
566

Long-term
liabilities

8,793

Short-term debt

Lease obligations

4,502
1,454

‐ Total net assets

42,240Total liabilities
and net assets

101,382

101,382Long-term debt

Figures in the table are rounded downNet cash = Cash on hand and in banks-Interest-bearing debt

© 2014 AIN PHARMACIEZ Inc. All Rights Reserved.

5

Assets
Consolidated current assets at the end of the fiscal year under review increased by ¥1,172 million to ¥44,334 million
compared to ¥43,162 million at the end of the previous fiscal year. Fixed assets at the end of the fiscal year under review
increased by ¥4,371 million to ¥57,048 million compared to ¥52,676 million at the end of the previous fiscal year.
End-FY4/12(¥ million)

End-FY4/13

End-FY4/14

ChangeInventories

15,935
10,985
8,253

18,4607,043
7,944

18,846
6,718
9,759

+386
(325)
+1,815

Total current assets

40,32043,16244,334+1,172

7,048
5,621
873

8,247
6,030
1,229

9,962
6,698
1,342

+1,715+668+113

15,256

17,55019,583+2,033

113

99

47

(52)

18,65520,605

21,129

+524

2,825
1,122
5,758

2,789
946
6,985

2,559
1,068
8,081

(230)
+122
+1,096

11,65745,57085,908

14,52052,676
95,83916,33457,048101,382+1,814+4,372+5,543

Cash on hand and in banks
Notes and accounts receivable

Buildings and structures,netLand
Lease assets

Total property,plant and equipment
lease assets

Total intangible fixed assets
Investments in securities
Deferred tax assets
Lease and guarantee deposits

Total investments and other assets
Total fixed assets
Total assets
Figures in the table are rounded down

Change(¥):End-FY4/14compared with end-FY4/13

Capital expenditures (Purchases of property, plant and equipment and intangible fixed assets + deposits/guarantees) totaled ¥6,328 million© 2014 AIN PHARMACIEZ Inc. All Rights Reserved.

6

Liabilities and Net Assets
Liabilities increased by ¥1,659 million to ¥59,142 million compared to ¥57,483 million at the end of the previous fiscal year.
This primarily reflected accounts payable of ¥28,002 million, up ¥3,917 million year on year, short-term debt of ¥6,535 million,down ¥947 million, and long-term debt of ¥4,502 million, down ¥3,545 million.
(¥ million)

End-FY4/12

End-FY4/13

End-FY4/14

ChangeAccounts payable

22,52424,08428,002+3,918

Short-term debt

6,3977,483

6,535

(948)

Lease obligation

344

498

566

+68

Total current liabilities

42,94545,68650,349+4,663Long-term debt(including bonds)

6,318

8,048

4,502

(3,546)

675

1,223

1,454

+231

9,216

11,796

8,793(3,003)

Total liabilities

52,162

57,48359,142+1,659Common stock

8,682

8,682

8,682

0

Capital surplus

7,872

7,872

7,872

0

Retained earnings

17,426

21,70426,007+4,303

Total shareholders’ equity

33,97638,254

42,146+3,892

Total net assets

33,74538,35642,240+3,884

Total liabilities and net assets

85,90895,839101,382+5,543

Lease obligation

Total long-term liabilities

Figures in the table are rounded down
Change(¥)：End-FY4/14 compared with end-FY4/13© 2014 AIN PHARMACIEZ Inc. All Rights Reserved.

7

Consolidated C/FCash and cash equivalents increased ¥296 million year on year to ¥18,735 million.

End-FY4/13

End-FY4/14

Net cash provided by operating activities

10,203

14,662+4,459

Income before income taxes and minority interests

9,694

10,265+571

Depreciation and amortization

2,2122,258+46

Amortization of goodwill

1,784

2,033+249

Decrease in accounts receivable

4,672

1,110

(3,562)(Increase) decrease in inventories

504(1,485)(1,989)(Increase) decrease in other accounts receivable(4,268)

1,551

5,819

Net cash used in investing activities(8,503)(7,749)+754

Payments for purchases of property, plant andequipment, and intangible fixed assets(4,223)(4,254)(31)

Purchase of shares in affiliated companies(2,923)(2,410)+513

803(6,617)(7,420)Net increase in cash and cash equivalents

2,504295(2,209)

Cash and cash equivalents at end of the period

18,43918,735+296(¥ million)

Net cash provided by (used in) financing activities

ChangeFigures in the table are rounded down

© 2014 AIN PHARMACIEZ Inc. All Rights Reserved.

8

Business Value Analysis
End-FY4/12
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)
Shareholder value (¥ million)
Market capitalization (¥ million)

39.2
79.6
13.96
307.352.03
2,113.79
6.0
15.5
13,266
4.88(0.06)
2,199
66,98868,385End-FY4/13

40.0
79.3
14.97
318.371.98
2,403.43
5.6
14.1
13,6985.37(0.03)
1,206
74,71375,957End-FY4/14

41.5
70.3
13.62
330.081.70
2,656.86
5.3
13.1
14,4054.49(0.14)
5,787
70,407
71,264

Change+1.5(9.0)(1.35)+11.71(0.28)+253.43
(0.3)
(1.0)
+707
(0.88)(0.11)+4,581(4,306)(4,693)Figures in the table are rounded down
Change：FY4/14 compared with FY4/13

Shareholder value = EV – net interest-bearing debt
Net D/E ratio = (interest-bearing debt – cash on hand and in banks) / shareholders’ equity
Share prices used to calculate market capitalization:
End-FY4/12 ¥4,290(end-Apr 2012), end-FY4/13 ¥4,765 (end-Apr 2013), end-FY4/14 ¥4,495 (end-Apr 2014).
Net cash ＝Cash on hand and in banks －Interest-bearing debt

© 2014 AIN PHARMACIEZ Inc. All Rights Reserved.

9

FY4/15 Plan (Consolidated)
The Group forecasts net sales for the fiscal year ending April 30, 2015 of ¥190,000 million, up 11.6% year on year,
ordinary income of ¥10,700 million, up 1.1%, and net income of ¥5,500 million, an increase of 4.6%

YoYchangeFY4/13
results

FY4/14
results

FY4/15plan

Gross profit

154,560
24,442

170,225
25,748% of net sales

15.8

15.1

190,000 +19,775
27,870 +2,122

14,74015,635

17,610

9.5

9.2

9.3

9,701

10,113

10,260

6.3

5.9

5.4

10,292

10,587

10,700% of net sales

6.7

6.2

5.6

Net income

5,075

5,2595,500% of net sales

3.33.12.9318.37

330.08

60.00

60.00

(¥ million)

Net sales

SG&A expenses% of net sales

Operating income% of net sales

Ordinary income

Net income pershare(¥)

Annual dividend (¥)

14.7

YoY
change (%)

+11.6
+8.2

+1,975+12.6+147+1.5

+113

+1.1

+241+4.6

346.91+16.83

+5.1

60.00

0.00

00.0

Figures in the table are rounded down
Change：FY4/15plan compared with FY4/14© 2014 AIN PHARMACIEZ Inc. All Rights Reserved.

10Inquiries related to this presentation should be addressed toAIN PHARMACIEZ 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 PHARMACIEZ 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.

© 2014 AIN PHARMACIEZ Inc. All Rights Reserved.

11