Ain Holdings Inc. · TSE:9627
Ain — Q2 FY4/25 Earnings Presentation
33 slides from Ain's earnings presentation, Dec 12, 2024
Slide 1: FY4/25 2Q IR Presentation
FY4/25 2Q IR PRESENTATION December 12, 2024
Slide 2: Results Overview
Results Overview © AIN HOLDINGS INC. All Rights Reserved. 1
Slide 3: Consolidated P/L
Consolidated P/L Net sales increased 10.9% YoY and 0.6% against the plan due to contribution of stores opened in the previous year and growth at existing stores in both businesses. Ordinary profit decreased 32.1% YoY and decreased 11.4% against the plan. FY4/24 2Q FY4/25 2Q FY4/25 2Q YoY YoY Vs （¥ m
Slide 4: Dispensing Pharmacy Business (Consolidated)
Dispensing Pharmacy Business (Consolidated) Net sales increased 7.6% YoY and 1.2% against the plan because the average prescription price of existing stores and stores opened in the previous year rose due to an increase in high-cost prescription. Segment profit decreased 22.8% YoY and 7.9% against t
Slide 5: Retail Business (Consolidated)
Retail Business (Consolidated) Net sales up 54.3% YoY and decreased 1.9% against the plan, supported by the consolidation of Francfranc, and due to the number of customers at existing AINZ & TULPE stores and stores opened in the previous fiscal year remained firm. Segment profit increased 28.5% YoY
Slide 6: Consolidated B/S
Consolidated B/S Net cash became ¥ (9,399) million due to funds procured for the acquisition of shares associated with the consolidation of Francfranc through borrowings, but the shareholders’ equity ratio was 46.0%, maintaining a sound financial structure. End-FY4/24 End-FY4/25 2Q (¥ million) (¥ mi
Slide 7: Assets
Assets The balance of total assets increased ¥46,592 million from the end of the fiscal 2024, mainly reflecting increases in goodwill and merchandise due to the consolidation of Francfranc. Francfranc End-FY4/24 2Q End-FY4/24 End-FY4/25 2Q Change (¥ million) , Cash andand decrease deposits in accoun
Slide 8: Liabilities and Net Assets
Liabilities and Net Assets Accounts payable – trade increased ¥9,994 million due to the consolidation of Francfranc. In addition, short- term and long-term borrowings increased ¥29,627 million due to funds procured from financial institutions for the acquisition of shares of the company. (¥ million)
Slide 9: Consolidated C/F
Consolidated C/F Net cash provided by investing activities became ¥54,045 million due to the consolidation of Francfranc, but the cash and cash equivalents at end of the period were ¥27,199 million, maintaining ample cash. FY4/24 2Q FY4/25 2Q Change (¥ million) Net cash provided by operating activit
Slide 10: Business Value Analysis
Business Value Analysis FY4/24 2Q FY4/24 FY4/25 2Q Change Shareholders’ equity ratio (%) 53.4 54.3 46.0 (7.4) Market value equity ratio (%) 61.3 83.8 59.9 (1.4) PER (times) 14.17 18.39 27.56 +13.39 EPS (¥) 149.66 324.64 91.75 (57.91) PBR (times) 1.16 1.56 1.32 +0.16 BPS (¥) 3,693.46 3,866.55 3,883.3
Slide 11: FY4/25 Plan (Consolidated)
FY4/25 Plan (Consolidated) The group forecasts net sales for the fiscal year ending April 30, 2025 increase 13.4% YoY due to new store openings of dispensing pharmacy business and retail business, and the consolidation of Francfranc. Ordinary profit will decrease 6.4% YoY due to increase in costs of
Slide 12: Review
Review © AIN HOLDINGS INC. All Rights Reserved. 11
Slide 13: Consolidated (YoY results)
Consolidated (YoY results) Ordinary profit decreased ¥3.0 billion YoY due to the effect of unstable supplies of generic drugs, dispensing fee revisions, and increase in labor costs in dispensing pharmacy business. Net sales Ordinary profit ¥193.7 billion ¥214.8 billion +¥21.1billion ¥9.3 billion ¥6.
Slide 14: Consolidated (vs Revised plan)
Consolidated (vs Revised plan) Ordinary profit decreased ¥0.8 billion against the plan due to increase in labor costs, the effect of unstable supplies of generic drugs, and dispensing fee revisions in dispensing pharmacy business, etc. Net sales Ordinary profit ¥213.6 billion ¥214.8 billion +¥1.2bil
Slide 15: Number of Pharmacies and Stores
Number of Pharmacies and Stores ■ Plan and Results FY4/25 2Q FY4/25 Plan Results Prospect Dispensing pharmacy 36 31 80 Organic 16 16 40 M&A 20 15 40 Opening Retail 165 165 182 AINZ & TULPE 4 4 16 Francfranc 161 161 166 Total 201 196 262 Dispensing Pharmacy 14 14 47 Closure Retail 3 3 3 Total 17 17 5
Slide 16: Strategy
Strategy © AIN HOLDINGS INC. All Rights Reserved. 15
Slide 17: Strategy
Strategy FY4/25 Focus on business revenue ■ Closing the gap ■ Synergy with Francfranc Expansion of top-line ■ Dispensing pharmacy business strategy ■ Organic store openings and utilization of M&A ■ Retail business strategy ■ AINZ & TULPE + Francfranc ■ Organic store openings and utilization of M&A R
Slide 18: Closing the gap
Closing the gap We expect to achieve full-year plan due to cost control already carried out in the third quarter of the fiscal 2025, in addition to expectation of technical fee calculation in dispensing pharmacy business and favorable trend in retail business. Progression rate 89％ Plan of the First
Slide 19: Synergy with Francfranc
Synergy with Francfranc Post Merger Integration (PMI) is being carried out with Francfranc, joined the Group in August 2024. We will realize various synergies in expanding its top line and strengthening its management base. Displaying private brand (PB) products in both stores in the form of a Exp
Slide 20: Organic stores opened in the first half
Organic stores opened in the first half 16 pharmacies Sanmu Medical Center (Opened in Sept. 2024) Hokkaido University Hospital (Opened in June 2024) Kyushu University Hospital (Opened in June 2024) Kitasato University Medical Center (Opened in Oct. 2024) © AIN HOLDINGS INC. All Rights Reserved. 19
Slide 21: Organic stores plan to open in the second half
Organic stores plan to open in the second half 24 pharmacies Total 40 pharmacies for the full year A Hospital (Plan to open in Apr. 2025) Kutchan Kosei General Hospital (Opened in Nov. 2024) Kumamoto University Hospital (Opened in Dec. 2024) B Hospital (Plan to open in Apr. 2025) © AIN HOLDINGS INC.
Slide 22: Organic store openings and utilization of M&A
Organic store openings and utilization of M&A By actively opening organic stores and carrying out M&A, we are steadily increasing the size of the business. We aim for net sales of ¥ 500 billion by fiscal 2030 in the dispensing pharmacy business. ■ Sales growth rate of pharmacies opened in FY4/25 ■ M
Slide 23: AINZ & TULPE + Francfranc
AINZ & TULPE + Francfranc 1 On November 15, 2024, we displayed 180 stock keeping units (SKUs) of Francfranc products in the form of a shop-in-shop in AINZ & TULPE New Chitose Airport. The net sales are favorable due to the product mix focused on the needs of tourists from foreign countries. AINZ & T
Slide 24: AINZ & TULPE + Francfranc
AINZ & TULPE + Francfranc 2 In November 29, 2024, we opened Francfranc stores adjacent to AINZ & TULPE Colette Mare Sakuragicho. We are working to provide new value in the form of total lifestyle proposals that deliver even more excitement to our customers. AINZ & TULPE Colette Mare Sakuragicho Fran
Slide 25: Organic store openings and utilization of M&A
Organic store openings and utilization of M&A We plan to 16 AINZ & TULPE stores and 6 Francfranc stores in fiscal 2025, due to the consolidation of Francfranc in August 2024. We aim for net sales of ¥ 200 billion including M&A by fiscal 2030 in the retail business and other business. ■ Sales growth
Slide 26: Human capital
Human capital We aim to hire about 600 new pharmacists and 600 new medical support staff in fiscal 2025. A total of 1,333 people participated in the job offer ceremony held in October 2024, and the number of the new employee is expected as planned at present. （people） 800 Pharmacists Medical support
Slide 27: Digital transformation (DX) investment
Digital transformation (DX) investment Medium-term measures In each business and whole the company, digital transformation measures to expand the scale of business, and the upgrading of operations using IT, etc., are set as mid-term measures by fiscal 2027. The company provides added value that only
Slide 28: Sustainability management
Sustainability management 1 We have conducted our corporate activities with common sense and ethics in order to realize our group statement of “the health and happiness of our customers" through our businesses contributing to people's health and beauty. Going forward, we will achieve sustainable cor
Slide 29: Sustainability management
Sustainability management 2 Within our Sustainability Committee, approximately 30 project teams are promoting cross-sectoral initiatives for each materiality. In addition, the whole company works on realizing a sustainable society. Disclosure of human capital management strategy map and KPI Utilizat
Slide 30: Capital and financial strategy
Capital and financial strategy In the Integrated Report 2024 disclosed on December 5, 2024, we set medium- to long-term numerical targets for growth investment consolidated net sales of ¥ 700 billion in fiscal 2030 and ¥ 1 trillion in fiscal 2034. To achieve these goals, we allocate capital appropri
Slide 31: FY4/25 Plan (Consolidated)
FY4/25 Plan (Consolidated) The group forecasts net sales for the fiscal year ending April 30, 2025 increase 13.4% YoY due to new store openings of dispensing pharmacy business and retail business, and the consolidation of Francfranc. Ordinary profit will decrease 6.4% YoY due to increase in costs of
Slide 32: Inquiries and disclaimer
Inquiries related to this presentation should be addressed to AIN HOLDINGS INC. Corporate Planning Division TEL: +81-3-5333-1812 https://www.ainj.co.jp/corporate/ This document may not be reproduced or distributed to any third party without prior approval of AIN HOLDINGS INC. This document has been
Slide 33: © AIN HOLDINGS INC. All Rights Reserved.
© AIN HOLDINGS INC. All Rights Reserved. 32