Ain Holdings Inc. · TSE:9627
Ain — FY4/20 Earnings Presentation
33 slides from Ain's earnings presentation, Jun 11, 2020
Slide 1: FY4/20 IR Presentation
FY4/20 IR PRESENTATION June 2020
Slide 2: Results Overview
Results Overview © 2020 AIN HOLDINGS INC. All Rights Reserved. 1
Slide 3: Consolidated P/L
Consolidated P/L Net sales increased 6.2% YoY and decreased 0.2% against the plan due to the impact of the COVID-19 outbreak, despite the contribution of 35 stores opened(including M&A) in this fiscal year and store opened in previous year. Ordinary income up 1.1% YoY and declined 2.2% against the p
Slide 4: Dispensing Pharmacy Business (Consolidated)
Dispensing Pharmacy Business (Consolidated) Net sales increased 7.7% YoY and 0.0% against the plan due to the full contribution of stores opened in previous year and increase in average prescription price. Segment income up 13.7% YoY and declined 1.9% against the plan due to the impact of the COVID-
Slide 5: Cosmetic and Drug Store Business (Consolidated)
Cosmetic and Drug Store Business (Consolidated) Net sales declining 2.0% YoY and 2.8% against the plan due to temporarily closed or shorted opening hours at many stores, despite the group has opened 15 stores in this fiscal year. Segment income decreased 73.0% YoY and 12.7% against the plan due to n
Slide 6: Consolidated B/S
Consolidated B/S Net cash became ¥39,899million due to repayment of debts and shareholders’ equity ratio became 57.3%. We are maintaining a sound financial structure. (¥ million) (¥ million) End-FY4/19 End-FY4/20 Assets Liabilities Assets Liabilities Current assets 73,744 Current assets 74,700 85,44
Slide 7: Assets
Assets The balance of total assets increased ¥4,430 million from the end of the previous fiscal year due to new store openings and M&A. End-FY4/18 End-FY4/19 End-FY4/20 Change (¥ million) Cash on hand and in banks 63,779 48,091 46,321 （1,770) M&A Notes and accounts receivable 10,466 12,771 13,653 +8
Slide 8: Liabilities and Net Assets
Liabilities and Net Assets The balance of liabilities decreased ¥2,652 million from the end of the previous fiscal year due to the repayment of debts etc. (¥ million) End-FY4/18 End-FY4/19 End-FY4/20 Change Accounts payable 38,728 44,794 47,187 +2,393 Short-term debt 6,717 5,571 3,642 (1,929) Repaym
Slide 9: Consolidated C/F
Consolidated C/F Operating activities was ¥17,747 million due to the promotion of new store opening especially focus on large-scale store. (¥ million) FY4/19 FY4/20 Change Net cash provided by operating activities 14,788 17,747 +2,959 Profit before income taxes 15,624 15,930 +306 Depreciation and am
Slide 10: Business Value Analysis
Business Value Analysis FY4/18 FY4/19 FY4/20 Change Shareholders’ equity ratio (%) 52.7 54.9 57.3 +2.4 Market value equity ratio (%) 141.0 165.7 110.4 (55.3) PER (times) 23.54 34.68 23.27 (11.41) EPS (¥) 310.08 254.87 259.11 +4.24 PBR (times) 2.67 3.01 1.92 (1.09) BPS (¥) 2,729.44 2,931.48 3,130.77
Slide 11: FY4/21 Plan (Consolidated)
FY4/21 Plan (Consolidated) The group forecasts net sales for the fiscal year ending April 30, 2021 increase 6.3% and ordinary income decrease 10.8% YoY by open new stores (50 dispensing pharmacies and 12 cosmetic and drug stores). FY4/19 FY4/20 FY4/21 YoY YoY （¥ million） results results plan change
Slide 12: Review / Revision of 2020 / Growth strategy
Review Revision of 2020 Growth strategy © 2020 AIN HOLDINGS INC. All Rights Reserved. 11
Slide 13: Review
Review © 2020 AIN HOLDINGS INC. All Rights Reserved. 12
Slide 14: Review (YoY)
Review（YoY） Although the net sales increased due to the full contribution of stores opened in previous fiscal year and new store openings, ordinary income increased 1.1% YoY, reflecting the impact of COVID-19. Net sales Ordinary income Store opened ¥292.6 billion in last FY +¥18.4billion ¥275.5 bill
Slide 15: Review (Vs plan)
Review（Vs plan） Net sales and ordinary income not achieving the plan due to the impact of COVID-19 outbreak. Net sales Ordinary income ¥293.2 billion ¥17.2 billion ¥292.6 billion ¥16.8 billion Store opened in last FY +¥0.1billion Dispensing Dispensing Existing Pharmacy ¥(0.1)billion Dispensing Pharm
Slide 16: Revision of 2020
Revision of 2020 © 2020 AIN HOLDINGS INC. All Rights Reserved. 15
Slide 17: Transition of dispensing fee revision
Transition of dispensing fee revision 2018 74.0% (¥million) 80. 0% Dispensing pharmacy Non-hospital Dispensing ¥7.5 trillion (¥million) 0.0 08 dispensing ratio(%) pharmacy sales Segment income market (¥trillion) 2010 70. 0% 63.1% ●1956: Law creating non-hospital ●1994: Promoting non-hospital ● 2003:
Slide 18: Dispensing Fee Revision of 2020
Dispensing Fee Revision of 2020 revision of 2018 Pts revision of 2020 Pts Except following Except following BDF 1 or Regions with limited medical resources 41 or Regions with limited medical resources 42 Over 4,000 times & Over 70% Over 4,000 times & Over 70% or Over 2,000 times & Over 85% Basic BDF
Slide 19: Responsive to revision of 2020
Responsive to revision of 2020 Object: 927 existing stores Basic dispensing fee Community support system premiums 1（42pts） 2（26pts） 3-Ⅱ（16pts） SP.（9pts） No Premiums Community support system premiums(38pts) 1,000 1,000 341 358 358 385 257 287 303 315 Stores Stores 500 6 7 7 8 500 567 548 547 519
Slide 20: Growth strategy
Growth strategy © 2020 AIN HOLDINGS INC. All Rights Reserved. 20
Slide 21: Growth Strategy
Growth Strategy Considering the institutional changes and deregulation in future, the Group continues to open high potential stores and reinforcing the Group’s business base. ■ Top-line Expanding of business by active new store openings in prime location and by secure M&As AIN Pharmacy DOKKYOIDAI ■
Slide 22: Opening
Top-line The group opened 35 stores including M&A, and closed 70 stores during the FY4/20. ■ Total number of stores 1,151 (Dispensing pharmacy:1,088、Cosmetic and drug store:63) FY4/20 FY4/21 ■ Plan Hokkaido Plan Results Plan 119 Dispensing 20(100) 20 50 Pharmacy Opening Organic 14(25) 14 28 Koshinet
Slide 23: M&A
M&A During the period, new store openings through M&A was only 6 dispensing pharmacies and EV/EBITDA ratio was 3.71 times due to the Group raised M&A criteria. Considering our M&A criteria, we will concentrate on more reliable and large-scale cases. ■ M&A criteria M&A criteria Our targets Annual net
Slide 24: Reinforcing the Group's business base
Reinforcing the Group’s business base We aim to reinforcing the Group’s business base by actively investing in ICT, logistics, and Group brand building that will support our future growth. Investment projects Subject ■ ICT・Logistics Securing specialized Proactively hiring people with expertise in IT
Slide 25: Recruiting of Pharmacists
Recruiting of Pharmacists In April 2020, new 560 pharmacists has joined our group. We aim to hire roughly the same number in fiscal 2021 to prepare for new store openings including M&A. ■ The transition of No. of national examination passers and new qualified pharmacists in AIN Group 2021 2012 2013
Slide 26: The function of pharmacies
The function of pharmacies In terms of functions such as promotion of GE use, home-based health care and primary care services, which have been demanded by the country and patients, we have accumulated high achievements compared with pharmacies nationwide. Comparison of results (As of March 2020)
Slide 27: FY4/21 Plan (Dispensing Pharmacy Business)
FY4/21 Plan (Dispensing Pharmacy Business) The group forecasts net sales for the fiscal year ending April 30, 2021 of 268,400 million, up 1.8% year on year, Segment income of 20,860 million up 0.0% by open 50 pharmacies including M&A and close 18 pharmacies. FY4/19 FY4/20 FY4/21 YoY YoY （¥ million）
Slide 28: Expansion of ainz & tulpe①
Expansion of ainz & tulpe① Pole Town２（5/9/19） ainz & tulpe new store opening in FY4/20 15Stores ASAKUSA ROX（21/6/19） OMIYA ARCHE（25/10/19） SENDAI PARCO 2（10/4/20） KASHIWA Modi（13/9/19） bono SAGAMIONO（30/5/19） PERIE Chiba (25/7/19) PERIE Kaihimmakuhari（30/10/19） Daimaru Shimonoseki (20/3/20) LINKS UM
Slide 29: Expansion of ainz & tulpe②
Expansion of ainz & tulpe② The number of ainz & tulpe point card has growing steadily. The group launched the official ainz & tulpe app, which can also manage points in October 2019 and an EC website in May 2020. We plan to upgrade the online site with new functionality such as connectivity with the
Slide 30: FY4/21 Plan (Cosmetic and Drug Store Business)
FY4/21 Plan (Cosmetic and Drug Store Business) The group forecasts net sales for the fiscal year ending April 30, 2021 of 25,000 million, increase 1.2% year on year and Segment income of 110 million, decrease 58.0% year on year by open 12 new stores. FY4/19 FY4/20 FY4/21 YoY YoY （¥ million） results
Slide 31: FY4/21 Plan (Consolidated)
FY4/21 Plan (Consolidated) The group forecasts net sales for the fiscal year ending April 30, 2021 increase 6.3% and ordinary income decrease 10.8% YoY by open new stores (50 dispensing pharmacies and 12 cosmetic and drug stores). FY4/19 FY4/20 FY4/21 YoY YoY （¥ million） results results plan change
Slide 32: AIN Holdings Inc. Corporate Planning Division
Inquiries related to this presentation should be addressed to AIN 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 ha
Slide 33: AIN Group
AIN GROUP