Kusuri No Aoki Holdings Co.,ltd. · TSE:3549
Kusuri No Aoki Holdings Co.,ltd — FY2025 Earnings Presentation
45 slides from Kusuri No Aoki Holdings Co.,ltd's earnings presentation, Jul 9, 2025
Slide 1: Financial Results Briefing for the Fiscal Year Ended May 2025
Financial Results Briefing for the Fiscal Year Ended May 2025 KUSURI NO AOKI HOLDINGS CO., LTD. (TSE Prime Section Code 3549) July 9, 2025 Hironori Aoki
Slide 2: Agenda
1 Summary of Financial Results for the Fiscal Year Ended May 2025 and Earnings Forecast for the Fiscal Year Ending May 2026 2 Progress Status of the Third Medium-term Management Plan (for Five Years) Copyright2025 KUSURI NO AOKI HOLDINGS CO.LTD. All Rights Reserved. 2
Slide 3: Summary of Financial Results and Earnings Forecast
1 Summary of Financial Results for the Fiscal Year Ended May 2025 and Earnings Forecast for the Fiscal Year Ending May 2026 Summary of Financial Results for the 1 Fiscal Year Ended May 2025 Earnings Forecast for the Fiscal Year 2 Ending May 2026 Copyright2025 KUSURI NO AOKI HOLDINGS CO.LTD. All Righ
Slide 4: Store Opening/Closing Results
Store Opening/Closing Results Store opening and closing results FY May 2025 No. of No. of stores at Converted stores at end of FY Opening into a end of FY Hokushinetsu Tohoku Kanto Tokai Kansai Shikoku Closing May 2024 total subsidiary May 2025 (SM) [1] Drugstores 936 15 12 12 15 7 7 68 - - 1,004 [2
Slide 5: Year-on-Year Change in Sales by the Month
Year-on-Year Change in Sales by the Month All stores for current year Existing stores for current year Year-on-year change in existing stores (full-term) All stores for previous year Existing stores for previous year 125.0% All stores: 113.7% Existing stores: 107.6% 120.8% 120.0% 119.0% 116.3% 114.3
Slide 6: Year-on-Year Change in Customers and Average Spending per Customer
Year-on-Year Change in the Number of Customers and Average Spending per Customer by the Month at Existing Stores The number of customers for current year Average spending per customer for current year Year-on-year change at The number of customers for previous year Average spending per customer for
Slide 7: Consolidated Profit and Loss Statement
Consolidated Profit and Loss Statement FY May 2024 FY May 2025 Full-year results Full-year plan Full-year results YoY Million yen Sales ratio Million yen Sales ratio Million yen Sales ratio vs. Plan change Sales 436,875 100.0% 485,000 100.0% 501,470 100.0% 114.8% 103.4% Gross profit 118,090 27.0% 12
Slide 8: Reference: Consolidated P&L Excluding Stock-based Compensation Expense
Reference: Consolidated Profit and Loss Statement (Excluding stock-based compensation expense) FY May 2024 FY May 2025 Full-year results Full-year plan Full-year results (Excluding stock-based (Excluding stock-based (Excluding stock-based compensation expense) compensation expense) compensation expe
Slide 9: Results by Area
Results by Area FY May 2024 FY May 2025 Full-year results Full-year results Ratio of Ratio of Composition Number of Composition Number of Million yen stores with Million yen YoY change stores with ratio stores dispensaries ratio stores dispensaries Hokushinetsu 199,343 45.6% 373 68.9% 212,789 42.4%
Slide 10: Results by Product Division
Results by Product Division FY May 2024 FY May 2025 Full-year results Full-year results Difference in Composition Composition Million yen Million yen composition YoY change ratio ratio ratio Health 42,140 9.6% 44,392 8.9% -0.7% 105.3% Beauty 56,187 12.9% 60,243 12.0% -0.9% 107.2% Daily commodities 8
Slide 11: Results of SGA Expenses
Results of SGA Expenses (Year-on-Year Change) FY May 2024 FY May 2025 Full-year results Full-year plan Full-year results YoY Million yen Sales ratio Million yen Sales ratio Million yen Sales ratio vs. Plan change Labor cost 46,328 10.6% 46,250 9.5% 46,590 9.3% 100.6% 100.7% Sales promotion cost 2,78
Slide 12: Results of SGA Expenses (Excluding Stock-based Compensation Expense)
Results of SGA Expenses (Excluding Stock-based Compensation Expense) FY May 2024 FY May 2025 Full-year results Full-year plan Full-year results (Excluding stock-based (Excluding stock-based (Excluding stock-based compensation expense) compensation expense) compensation expense) •Point YoY Million ye
Slide 13: Consolidated Balance Sheet
Consolidated Balance Sheet As of May 20, 2024 As of May 20, 2025 Composition Composition Change from Increase/ Million yen Million yen ratio ratio May 20, 2024 Decrease Cash and deposits 49,125 16.2% 47,731 13.5% 97.2% -1,394 Inventory assets 47,792 15.7% 56,811 16.1% 118.9% 9,019 Current assets 125
Slide 14: Cash Flow Statement
Cash Flow Statement (Million yen) Increase/ FY May 2024 FY May 2025 Decrease Cash flows from operating activities 26,864 22,167 -4,697 Cash flows from investing activities -21,104 -31,079 -9,975 Cash flows from financing activities 344 7,668 7,324 Cash and cash equivalents at the 48,974 47,731 -1,24
Slide 15: Earnings Forecast for the Fiscal Year Ending May 2026
1 Summary of Financial Results for the Fiscal Year Ended May 2025 and Earnings Forecast for the Fiscal Year Ending May 2026 Summary of Financial Results for the 1 Fiscal Year Ended May 2025 Earnings Forecast for the Fiscal Year 2 Ending May 2026 Copyright2025 KUSURI NO AOKI HOLDINGS CO.LTD. All Righ
Slide 16: Store Opening/Closing Plan
Store Opening/Closing Plan Full-year store opening and closing results FY May 2026 No. of No. of stores at Converted stores at end of FY Opening into a end of FY Hokushinetsu Tohoku Kanto Tokai Kansai Shikoku Closing May 2025 total subsidiary May 2026 (SM) [1] Drugstores 1,004 21 19 21 13 18 18 110
Slide 17: Capital Investment Plan
Capital Investment Plan FY May 2025 FY May 2026 Full-year results (Million yen) Full-year plan (Million yen) Lease Lease Acquisition Total Acquisition Total YoY change assets assets Store investment 12,583 1,837 14,420 28,604 6,014 34,618 240.1% (New opening) Store investment 1,837 - 1,837 1,556 - 1
Slide 18: Full-Year Earnings Forecast
Full-Year Earnings Forecast FY May 2025 FY May 2026 Full-year results Full-year plan Million yen Sales ratio Million yen Sales ratio YoY change Sales 501,470 100.0% 560,000 100.0% 111.7% Gross profit 132,956 26.5% 144,263 25.8% 108.5% SGA expenses 106,354 21.2% 121,263 21.7% 113.9% Operating income
Slide 19: Full-Year Earnings Forecast (Excluding Stock-based Compensation Expense)
Full-Year Earnings Forecast (Excluding Stock-based Compensation Expense) FY May 2025 FY May 2026 Full-year results (excluding stock- Full-year plan based compensation expense) Million yen Sales ratio Million yen Sales ratio YoY change Sales 501,470 100.0% 560,000 100.0% 111.7% Gross profit 132,956 2
Slide 20: Full-Year Earnings Forecast (1H/2H)
Full-Year Earnings Forecast (1H/2H) FY May 2026 Full-year plan 1H plan 2H plan Million yen Sales ratio YoY change Million yen Sales ratio YoY change Sales 272,000 100.0% 112.0% 288,000 100.0% 111.3% Gross profit 70,645 26.0% 109.8% 73,617 25.6% 107.3% SGA expenses 59,345 21.8% 114.8% 61,917 21.5% 11
Slide 21: Plan by Area
Plan by Area FY May 2025 FY May 2026 Full-year results Full-year plan Ratio of Ratio of Million Composition Number Million Composition YoY Number of stores with stores with yen ratio of stores dispensaries yen ratio change stores dispensaries Hokushinetsu 212,789 42.4% 388 70.1% 223,241 39.9% 104.9%
Slide 22: Plan by Product Division
Plan by Product Division FY May 2025 FY May 2026 Full-year results Full-year plan Difference in Composition Composition Million yen Million yen composition YoY change ratio ratio ratio Health 44,392 8.9% 46,806 8.4% -0.5% 105.4% Beauty 60,243 12.0% 64,500 11.5% -0.5% 107.1% Daily commodities 87,689
Slide 23: SGA Plan
SGA Plan FY May 2025 FY May 2026 Full-year results Full-year plan Million yen Sales ratio Million yen Sales ratio YoY change Labor cost 46,590 9.3% 53,974 9.6% 115.8% Sales promotion cost 2,925 0.6% 3,122 0.6% 106.7% Real estate cost 32,457 6.5% 36,755 6.6% 113.2% Other expenses 24,381 4.9% 27,411 4
Slide 24: SGA Plan (Excluding Stock-based Compensation Expense)
SGA Plan (Excluding Stock-based Compensation Expense) FY May 2025 FY May 2026 Full-year results (excluding stock- Full-year plan based compensation expense) Million yen Sales ratio Million yen Sales ratio YoY change Labor cost 46,198 9.2% 53,974 9.6% 116.8% Sales promotion cost 2,925 0.6% 3,122 0.6%
Slide 25: Progress Status of the Third Medium-term Management Plan
2 Progress Status of the Third Medium-term Management Plan (for Five Years) 1 Overview Results of Efforts Made for Four Years and 2 Outlook for the Final Fiscal Year Copyright2025 KUSURI NO AOKI HOLDINGS CO.LTD. All Rights Reserved. 25
Slide 26: Vision 2026: Make Life More Convenient, Smile All the Times
Vision 2026 Make Life More Convenient, Smile All the Times Aiming to become a drugstore that supports “convenient life” and “health that makes you smile” in your town Copyright2025 KUSURI NO AOKI HOLDINGS CO.LTD. All Rights Reserved. 26
Slide 27: Three Priority Measures to Fulfill Vision 2026
Strategy: Three Priority Measures to Fulfill Vision 2026 1 Transformation to Food & Drug 2 Ratio of stores with dispensaries 70% 3 Shift toward the dominant strategy Copyright2025 KUSURI NO AOKI HOLDINGS CO.LTD. All Rights Reserved. 27
Slide 28: Numerical Target
Numerical Target - Achieved sales of 500 billion yen one year ahead of schedule. - Aim to achieve 560 billion yen in FY ending May 2026, the final year of the Third Medium-term Management Plan. (¥100 Million) 5600 Target in the Third Medium-term Management Plan 5014 Sales for FY May 2026 ¥500 billio
Slide 29: Achieved ¥500 billion in sales, Achieved 1000 stores
During the period of January 26, 2025 to May 20, 2026, the fiscal year to mark the 40th anniversary after foundation of the company, achieved the milestone of 1,000 stores and 500 billion yen in annual sales within the same fiscal year. 2025 Achieved ¥500 billion in sales Achieved 1000 stores 100th
Slide 30: Results of Efforts Made for Four Years and Outlook for the Final Fiscal Year
2 Progress Status of the Third Medium-term Management Plan (for Five Years) 1 Overview Results of Efforts Made for Four Years and 2 Outlook for the Final Fiscal Year Copyright2025 KUSURI NO AOKI HOLDINGS CO.LTD. All Rights Reserved. 30
Slide 31: Format Renewal (2020 Model)
Format Renewal (2020 Model) - Starting from October 2020, the 400-tsubo format has been added as a next-generation format. 450-tsubo-format concessionary (From 2014) 400 tsubo (From 2020) ► Large-size store 300 tsubo ► Store opening rate: 10% (From 2010) ► Suburb, countryside ► Medium-size store ► S
Slide 32: Strong Points of 400-tsubo Format
Strong Points of 400-tsubo Format - Offering fresh food has enabled our customers to enjoy one-stop shopping. - Covering the drugstore market as well as the dispensing and supermarket markets (markets exceeding 30 trillion yen) - Standardized format that allows for multiple store expansion Copyright
Slide 33: Fresh Food Roll-out in Existing Stores
Fresh Food Roll-out in Existing Stores - Fresh food know-how acquired through the development of the 400-tsubo format has been applied to the 300-tsubo format - Renovated 177 stores in FY May 2025 This made a total of 693 renovated stores over the past three years! - Plan to renovate 70 stores in FY
Slide 34: Toward Our Food & Drug Achievement Goals
Toward Our Food & Drug Achievement Goals - Introduce delicatessen sections into 300-tsubo and 400-tsubo operations in FY May 2025 - All stores (except for small-format stores) now have produce, meat and delicatessen sections. At the end of FY May 2025 Ratio of stores with produce, meat and delicates
Slide 35: Annual Trend for Year-on-Year Change in Sales
Annual Trend for Year-on-Year Change in Sales (Results in Previous Four Years and Outlook for the Current Fiscal Year) Year-on-year change at existing stores All stores Existing stores for FY ending May 2025 Sales: 107.6% 120.0% No. of customers: 104.3% 115.9% Average spending per customer: 103.1% 1
Slide 36: Accelerating Opening of Dispensing Pharmacies
Accelerating Opening of Dispensing Pharmacies - With the opening of 70 pharmacies in the full year, the ratio of stores with dispensaries was 66.1% at the end of FY ended May 2025 - Planning to open 30 pharmacies in the full FY ending May 2026 - The 70% target for pharmacy-attached store ratio, a ke
Slide 37: New Graduate Recruitment Status
New Graduate Recruitment Status - Employed a record number of approx. 950 new graduates in FY ended May 2025. - The plan of new graduate recruitment for FY ending May 2026 is 1,080, a new record number. Mynavi Popular Company Pharmacist recruitment Career positions recruitment Ranking Approx. Approx
Slide 38: Trends in Newly Opened Drugstores and Store Opening/Closing Rate
Trends in Number of Newly Opened Drugstores and Store Opening/Closing Rate - Number of stores newly opened in FY ended May 2024: 45, decreased by half, Number of stores newly opened remained sluggish again in FY ended May 2025. - As a complementary measure, six companies were converted into subsidia
Slide 39: Recent M&A Status [1] (First Entry into Shikoku Area)
Recent M&A Status [1] (First Entry into Shikoku Area) ～Converted 6 companies into subsidiaries in FY May 2025 (Sales of ¥50.7 billion, 72 stores)～ - The absorption and merger of Mamai Co., Ltd. (on September 1, 2024) enables our first entry into the Shikoku area. - Business acquisition of Mūmie Co.,
Slide 40: Recent M&A Status [2] (Domination in Kansai Area)
Recent M&A Status [2] (Domination in Kansai Area) - Absorption and merger of Super Yoshimura and Hustle, aiming for first entry into Wakayama Prefecture. (February 28, 2025) - Absorption and merger of Happy Terada, Co. Ltd. on June 1, 2025 - Establishment of Kansai/Shikoku/Tokai Area Headquarters ar
Slide 41: Recent M&A Status [3] (Kanto and Tohoku Areas)
Recent M&A Status [3] (Domination in Kanto Area and Tohoku Area) - First entry into the Akita Prefecture was achieved by the business transfer of the Fushimiya Group on February 28, 2025. The biggest M&A for us with sales of approx. ¥24.7 billion and 46 stores - Absorption and merger of Kimuraya Co.
Slide 42: M&A Execution
M&A Execution - Since fiscal May 2021, M&A transactions with local supermarkets have been executed. - The purpose is to strengthen fresh food merchandizing in each area and to secure well- located properties. February 2025 - Total sales of 19 companies: 93.3 billion yen, total number of stores: 134
Slide 43: Store Opening/Closing Results for All Areas
Store Opening/Closing Results for FY May 2025 - Number of stores newly opened in FY ended May 2025: 68 drugstores and 70 pharmacies FY May 2025: No. of drugstores newly opened / No. of stores at FY end by area All areas Newly Opened Hokushinetsu area (DG) Year End Tohoku area 15 388 68 1,036 Kansai
Slide 44: Store Opening/Closing Plan for FY May 2026
Store Opening/Closing Plan for FY May 2026 - In FY ending May 2026, 110 drugstores and 30 pharmacies are planned to be newly opened. - In FY ending May 2026, 8 drugstores are planned to be closed. FY May 2026: No. of drugstores newly opened / No. of stores at FY end by area All areas Newly Opened Ho
Slide 45: Make Life More Convenient, Smile All the Times
Make Life More Convenient, Smile All the Times The forward-looking statements in this document, including earnings forecasts, are based on information currently available to the Company and certain assumptions that the Company believes to be reasonable and are not intended as a guarantee that the Co
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