FY4/21 3Q
IR PRESENTATIONMarch 2021

Results Overview© 2021 AIN HOLDINGS INC. All Rights Reserved.

1

Consolidated P/L
Net sales was almost flat YoY and decreased 0.4% against the plan due to the contribution of 22 stores
opened(including M&A) in this fiscal year and store opened in previous year, despite the impact of theCOVID-19. Ordinary income declined 39.7% YoY due to lower gross profit margins and up 12.1% against
the plan due to reduction of administrative expense.
(¥ million)

Net sales
Gross profit% of net sales

FY4/20 3Q
results

FY4/21 3Q
plan

FY4/21 3Q
results

YoYchange+50
220,085 220,996 220,135
35,801 33,212 33,159 (2,642)
16.3

15.0

YoYchange(%)

Vs plan(%)+0.0(0.4)

(7.4)

(0.2)

15.1

23,353

26,945

26,346 +2,993 +12.8(2.2)

12,447

6,267

6,813 (5,634) (45.3)+8.7

13,0087,000

7,845 (5,163) (39.7) +12.1

7,110

4,130

4,575 (2,535) (35.7) +10.8% of net sales

3.2

1.9

Earnings pershare(¥)）

200.71116.58

SG&A expenses% of net sales

Operating income% of net sales

Ordinary income% of net sales

Profit attributable toowners of parent

10.6

5.7
5.9

Figures in the table are rounded down
© 2021 AIN HOLDINGS INC. All Rights Reserved.

12.2

2.8
3.2

12.0

3.1
3.6

2.1

129.16 (71.55) (35.6) +10.8
2

Dispensing Pharmacy Business (Consolidated)
Net sales decreased 1.3% YoY and 0.4% against the plan due to the impact of the COVID-19 outbreak.
Segment income declined 11.6% YoY due to decrease of net sales and up 4.3% against the plan due toreduction of administrative expense.
(¥ million)

FY4/20 3Q
results

FY4/21 3Q
plan

FY4/21 3Q
results

YoYchange

YoYchange(%)

Vs plan(%)

196,753 195,000 194,284 (2,469) (1.3)
26,248 23,600 23,481 (2,767) (10.5)(0.4)

11,115

11,00010,601(4.6)(3.6)

15,133

12,60012,880 (2,253) (14.9)+2.2

15,56913,769 (1,800) (11.6)+4.3% of net sales

7.9

13,200

Number ofpharmacies

1,101

1,057

1,057

+0.0

Net sales
Gross profit% of net sales

SG&A expenses% of net salesOperating income% of net sales

Segment income

13.3

5.6
7.7

12.1

5.6
6.5
6.8

12.1

5.5(514)

6.6
7.1(44)

(4.0)

(0.5)

Figures in the table are rounded down
Segment income is adjusted with the ordinary income of quarterly consolidated statements of income
Prescription volume: (10.8)% YoY
Average prescription price: +10.7% YoY© 2021 AIN HOLDINGS INC. All Rights Reserved.

3

Cosmetic and Drug Store Business (Consolidated)
Net sales declined 28.3% YoY and up 0.2% against the plan due to temporarily closed or shortedopening hours at many stores, despite the group has opened 7 stores in this fiscal year. Segment
loss was ¥1,507 million due to net sales declined.
FY4/20 3Q
results

FY4/21 3Q
plan

20,071
7,828

14,3575,265

14,386 (5,685) (28.3)
5,335 (2,493) (31.8)

+0.2

7,296

7,087

6,976

Operating income(loss)

531(1,822)

Segment income(loss)

2.6-575(1,696)% of net sales

2.9-

Number of stores

6265(¥ million)

Net sales
Gross profit% of net sales

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

39.036.4

FY4/21 3Q
results

36.749.4

YoYchange

37.1

YoYchange(%)

Vs plan(%)+1.3(320)

(4.4)

(1.6)

(1,641) (2,172)----+4.8

+0.0

48.5
-

(1,507) (2,082)-

65+3

Figures in the table are rounded down
Segment income (loss) is adjusted with the ordinary income of quarterly consolidated statements of income
Number of customers: (25.3)% YoY
Average spending per customer: (4.4)% YoY© 2021 AIN HOLDINGS INC. All Rights Reserved.

4

Consolidated B/S
Net cash became ¥42,043 million and shareholders’ equity ratio became 57.2%. We are
maintaining a sound financial structure even during the COVID-19 outbreak.
(¥ million)(¥ million)

End-FY4/21 3Q

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

106,526

Short-term debt
Lease obligations

3,975
113

Long-term
liabilities

13,917Long-term debt
Lease obligations

8,567
57

111,003Deferredassets-Total net assets

113,657

193,451

Total assets

198,772

Total liabilities
and net assets

198,772

Long-term debt
Lease obligations

2,432
154

Deferredassets

15

Total net assets

193,451

Total liabilities
and net assets

Shareholders’ equity
ratio(%)

Fixed assets

54,756

71,197

39,57042,123

Net cashCash on hand andin banks

92,246 Current liabilities

Goodwill

Goodwill

Total assets

Current assets

Liabilities

39,89957.3

Net cash
Shareholders’ equity
ratio(%)

42,043
57.2

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)© 2021 AIN HOLDINGS INC. All Rights Reserved.

5

Assets
The balance of total assets increased ¥5,321 million from the end of the previous fiscal
year due to increase of cash on hand and in banks.
(¥ million)

End-FY4/20 3Q

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 assetsInvestments in securities
Deferred tax assets
Deposits and guarantees
Total investments and otherassets
Total fixed assets
Total deferred assets
Total assets

Figures in the table are rounded down

End-FY4/20

End-FY4/21 3Q

Change46,276
13,713
14,63784,746
16,705
11,039339

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

54,756
11,866
15,59892,246
16,333
10,401
128+8,435(1,787)+276+4,444
(276)
(559)
(144)

31,02830,87430,492(382)

42,075
6
44,767
2,466
4,272
15,71342,123
5
44,9162,295
4,211
19,14439,5703
42,9192,389
4,250
19,390(2,553)(2)(1,997)+94+39+246

27,49429,841

33,113+3,272103,29026
188,063

105,632
15
193,451

106,526
198,772+894(15)+5,321

Change:End-FY4/21 3Q compared with End-FY4/20

Capital expenditures (Property, plant and equipment and intangible fixed assets + Deposits and guarantees) totaled ¥5,127 million© 2021 AIN HOLDINGS INC. All Rights Reserved.

6

Liabilities and Net Assets
The balance of liabilities increased ¥2,667 million from the end of the previous fiscal year due
to increase of long-term debt for investment purpose.
(¥ million)

End-FY4/20 3Q

Accounts payable
Short-term debt
Lease obligations
Total current liabilities
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
assets46,784
4,196
221

End-FY4/20

47,187
3,642
193

End-FY4/21 3Q

46,7003,975
113

Change(487)+333(80)

70,72674,70071,197(3,503)8,26278,989

7,747
82,447

13,917
85,114+6,170+2,667

109,082
109,074

111,151
111,003

113,778
113,657+2,627+2,654

188,063

193,451

198,772+5,321

3,009
218

21,89420,50066,6892,432
154

21,89420,50068,7588,567
57

21,89420,50071,385+6,135(97)+2,627

Figures in the table are rounded down
Change : End-FY4/21 3Q compared with End-FY4/20© 2021 AIN HOLDINGS INC. All Rights Reserved.

7FY4/21 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

FY4/21plan

YoYchangeYoYchange(%)

300,000
45,400+7,385+2.5(1,461)

(3.1)

15.1

SG&A expenses

30,79336,200+5,407+17.6

Operating income

16,0689,200(6,868)(42.7)

Ordinary income

16,822

10,000(6,822)(40.6)

9,179(4,179)(45.5)% of net sales

3.1

5,000

Earnings pershare(¥)

259.11141.13(117.98)(45.5)

55.00

55.00

0.0

0.0% of net sales% of net sales% of net sales

10.5

5.5
5.7

Profit attributable toowners of parent

Annual dividend (¥)

12.1

3.1
3.3
1.7

Figures in the table are rounded down
© 2021 AIN HOLDINGS INC. All Rights Reserved.

8

FY4/21 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.

(¥ million)

FY4/20results

FY4/21plan

YoY change

YoY change(%)

263,750
34,960264,800
32,400+1,050+0.4(2,560)(7.3)

SG&A expenses

14,664

14,900+236+1.6

Operating income

20,29517,500(2,795)(13.8)

Segment income

20,85018,200(2,650)(12.7)

1,088

1,079

(9)

(0.8)

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

Number ofpharmacies

13.3

5.6
7.7
7.9

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© 2021 AIN HOLDINGS INC. All Rights Reserved.

9

FY4/21 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

FY4/21plan

YoY change

YoY change(%)

Net sales

24,701

20,000(4,701)(19.0)

Gross profit

9,753

7,330(2,423)(24.8)

SG&A expenses

9,596

9,680+84+0.9Operating loss

157(2,350)(2,507)-Segment loss

262(2,200)(2,462)-6369+6+9.5% of net sales% of net sales% of net sales% of net sales

Number of stores

39.5

38.8
0.6
1.1

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© 2021 AIN HOLDINGS INC. All Rights Reserved.

10

Review© 2021 AIN HOLDINGS INC. All Rights Reserved.

11

Daily new COVID-19 cases across Japan
As of March 1, the number of domestic cases of the COVID-19 infection and deaths was 433,504
and 7,933, respectively.
（people）
9,000
8,000

No. of positive cases

Nov.24－Dec.15
Osaka and Sapporo excluded fromthe Go To Travel campaign

7,000

Dec.28－
Temporarily suspended
the Go To Travel campaign

Oct.1－
Tokyo joined
the Go To Travel campaign

6,000
5,000
4,000

Feb.28－Mar.19
Declaration of
3,000
the state of emergency
in Hokkaido

2,000

Jan.7－
Declaration of
the state of
emergency inspreading area

Apr.7－May.25
Declaration of
the state of emergency
nationwide

1,000

Mar.1685016/1/20

16/2

16/3

16/4

16/5

16/6

16/7

16/8

16/9

16/10

16/11

16/12

16/1/21

16/2

the Ministry of Health, Labour and Welfare's Open Data on the COVID-19© 2021 AIN HOLDINGS INC. All Rights Reserved.

12

Review（YoY）
Ordinary income decreased 5.2 billion because declined net sales couldn’t absorb store opening costs andlabor costs for new employee.

Net sales

Ordinary income¥0.1 billion¥(5.2) billion¥220.0 billion ¥220.1 billion¥13.0 billion
Dispensing
Pharmacy¥196.7 billion

Cosmetic andDrug Store¥20.0 billion¥7.8 billion

Dispensing
Pharmacy¥194.2 billion
Cosmetic andDrug Store
¥14.3 billion

Others ¥3.3 billion

Others¥11.6 billion

FY4/20 3Q
results

FY4/21 3Q
results

Dispensing
Pharmacy¥(2.5) billion

Cosmetic and DrugStore¥(5.7) billion
Retail shop+¥8.3 billion

Dispensing
Pharmacy¥15.5 billion¥13.7 billion
Cosmetic andDrug Store¥0.5 billion

Others ¥(0.1) billion

Administrative
expense¥(2.9) billion

FY4/20 3Q
results© 2021 AIN HOLDINGS INC. All Rights Reserved.

Dispensing
Pharmacy

Cosmetic andDrug Store¥(1.5) billion

Declined net sales
Others¥(4.2) billion

Others ¥(0.5) billion

Administrative
expense¥(3.9) billion

FY4/21 3Q
results

Administrative
expense¥(1.0) billion
13Review（Vs plan）
Net sales fell 0.8 billion against the plan due to the impact of the COVID-19 outbreak, while ordinary
income increased 0.8 billion against the plan due to cost reduction.

Net sales¥(0.8) billion

Ordinary income+¥0.8 billion¥220.9 billion ¥220.1 billion
Dispensing
Pharmacy

Dispensing
Pharmacy¥195.0billion¥194.2 billion

Cosmetic andDrug Store¥14.3 billion

Cosmetic andDrug Store
¥14.3 billion

Others ¥11.6 billion Others ¥11.6 billion

FY4/21 3Q
plan

FY4/21 3Q
results© 2021 AIN HOLDINGS INC. All Rights Reserved.

¥7.0 billion
Dispensing
Pharmacy¥(0.8) billion
Cosmetic and DrugStore＋¥0.0 billion
Retail shop¥(0.0) billion¥7.8 billion

Dispensing
Pharmacy

Dispensing
Pharmacy¥13.2 billion¥13.7 billion

Cosmetic andDrug Store¥(1.7) billion

Cosmetic andDrug Store¥(1.5) billion+¥0.5billion
SG&A
expensescosts+¥0.3billion+¥0.8 billion

Others ¥(0.5) billion Others ¥(0.5) billion

Administrative
expense¥(4.0) billion

Administrative
expense¥(3.9) billion

FY4/21 3Q
planFY4/21 3Q
results14

Strategy
Expansion of Top-line■Dispensing Pharmacy

Expanding of opening large-scale pharmacies
including M&A■Cosmetic and Drug Store

Accelerate opening stores in satellite cities

Proper staffing■Active recruitment of newly graduate pharmacists■Assign personnel properly and strengthening recruitment of full-time
employees who are willing to gain experiences, while discontinuing
temporary and mid-career employeesReinforcing 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© 2021 AIN HOLDINGS INC. All Rights Reserved.

15

Top-line
The group opened 22 stores including M&A, and closed 51 stores during the FY4/21 3Q.
■ Total number of stores

1,122 (Dispensing pharmacy:1,057、Cosmetic and drug store:65)

OpeningClosed

FY4/21

FY4/21 3Q■ PlanPlan

Dispensing
Pharmacy

Results

141538Organic

8816

M&A6722

Cosmetic anddrug store

7711Total

21224945

4647

555505152

Dispensing

Pharmacy
Cosmetic anddrug store

Total■ Transition of dispensing pharmacies
Organic
M&A

EV/EBITDA ratio

ClosedSold

No. of total stores

Hokkaido
121

Revised plan

Koshinetsu
106
Chugoku,
Shikoku
89

Tohoku168

Hokuriku
24

Kyusyu, Okinawa
43

Kanto362

Kinki
126

Tokai83
End-FY4/21 3Q

FY4/13

FY4/14

FY4/15

FY4/16FY4/17

FY4/18

FY4/193836403227252314838
5.09

26
3.94

119
4.77

110
5.37

182
5.50

113.96

134
4.88

63.71

73.63

10560

61616

21
1754

15
1881

24
2
1,066

73
32
1,029

54
30
1,132

64
42
1,088

46
34
1,057

EV/EBITDA ratio=EV(Purchase price)/EBITDA(Operating income + Depreciation and amortization)© 2021 AIN HOLDINGS INC. All Rights Reserved.

FY4/20 FY4/21 3Q

16

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

© 2021 AIN HOLDINGS INC. All Rights Reserved.

17