Kusuri No Aoki Holdings Co.,ltd. · TSE:3549

Kusuri No Aoki Holdings Co.,ltd — Q2 FY May 2026 Earnings Presentation

53 slides from Kusuri No Aoki Holdings Co.,ltd's earnings presentation, Jan 7, 2026

  1. Slide 1: Financial Results Briefing for the Second Quarter of the Fiscal Year Ending May 2026

    Financial Results Briefing for the Second Quarter of the Fiscal Year Ending May 2026 January 7, 2026 Hironori Aoki, Representative Director and President (TSE Prime Section Code: 3549)

  2. Slide 2: Financial Results Briefing for the Second Quarter of the Fiscal Year Ending May 2026

    Financial Results Briefing for the Second Quarter of the Fiscal Year Ending May 2026 Summary of Financial Results for the 01. First Half of the Fiscal Year Ending May 2026 Earnings Forecast for the Fiscal Year 02. Ending May 2026 2 Copyright2026 KUSURI NO AOKI HOLDINGS CO.,LTD. All Rights Reserved.

  3. Slide 3: Store Opening/Closing Results

    Store Opening/Closing Results No. of No. of Store opening and closing results for 1H of FY May 2026 stores at stores at end of 1H end of FY Opening M&A May 2025 Hokushinetsu Tohoku Kanto Tokai Kansai Shikoku total Closing of FY May (SM) 2026 [1] Drugstores 1,004 7 7 12 8 10 10 54 0 1 1,057 [2] Attac

  4. Slide 4: Year-on-Year Change in Sales by Month

    Year-on-Year Change in Sales by Month All stores for current year Existing stores for current year Year-on-year change in All stores for previous year Existing stores for previous year 1H cumulative sales 125.0% All stores: 115.0% 120.5% Existing stores: 105.7% 120.0% 116.1% 114.1% 114.1% 115.0% 112

  5. Slide 5: Year-on-Year Change in Number of 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 in 1H The number of customers for previous year Average spending per customer f

  6. Slide 6: Consolidated Profit and Loss Statement

    Consolidated Profit and Loss Statement Results for 1H of FY Plan for 1H of FY May Results for 1H of FY May 2026 May 2025 2026 YoY Million yen Sales ratio Million yen Sales ratio Million yen Sales ratio vs. Plan change Sales 242,826 100.0% 272,000 100.0% 279,808 100.0% 115.2% 102.9% Gross profit 64,3

  7. Slide 7: Consolidated Profit and Loss Statement (Excluding Stock-Based Compensation)

    Consolidated Profit and Loss Statement * Excluding stock-based compensation expenses Results for 1H of FY May 2025 Plan for 1H of FY May Results for 1H of FY May 2026 (Excluding stock-based 2026 compensation expenses) YoY Million yen Sales ratio Million yen Sales ratio Million yen Sales ratio vs. Pl

  8. Slide 8: Results by Area

    Results by Area Results for 1H of FY May 2025 Results for 1H of FY May 2026 Ratio of Ratio of Composition Number of Composition YoY Number of Million yen stores with Million yen stores with ratio stores dispensaries ratio change stores dispensaries Hokushinetsu 105,342 43.4% 378 71.4% 113,371 40.5%

  9. Slide 9: Results by Product Division

    Results by Product Division Results for 1H of FY May 2025 Results for 1H of FY May 2026 Difference in Composition Composition Million yen Million yen composition YoY change ratio ratio ratio Health 21,225 8.7% 22,438 8.0% -0.7% 105.7% Beauty 30,563 12.6% 32,538 11.6% -1.0% 106.5% Daily commodities 4

  10. Slide 10: Results of SGA Expenses

    Results of SGA Expenses Results for 1H of FY Plan for 1H of FY Results for 1H of FY May 2026 May 2025 May 2026 YoY Million yen Sales ratio Million yen Sales ratio Million yen Sales ratio vs. Plan change Labor cost 22,675 9.3% 26,347 9.7% 26,590 9.5% 117.3% 100.9% Sales promotion 1,353 0.6% 1,501 0.6

  11. Slide 11: Results of SGA Expenses (Excluding Stock-Based Compensation)

    Results of SGA Expenses * Excluding stock-based compensation expenses Results for 1H of FY May 2025 Plan for 1H of FY (Excluding stock- Results for 1H of FY May 2026 based compensation May 2026 expenses) YoY Million yen Sales ratio Million yen Sales ratio Million yen Sales ratio vs. Plan change Labo

  12. Slide 12: Consolidated Balance Sheet

    Consolidated Balance Sheet As of May 20, 2025 As of November 20, 2025 Change Composition Composition Increase/ Million yen Million yen from May ratio ratio Decrease 20, 2025 Cash and deposits 47,731 13.5% 57,998 15.0% 121.5% 10,267 Inventory assets 56,811 16.1% 62,248 16.1% 109.6% 5,437 Current asse

  13. Slide 13: Cash Flow Statement

    Cash Flow Statement (Unit: Million yen) As of November 20, As of November 20, Increase/Decrease 2024 2025 Cash flows from operating activities 11,210 17,853 6,643 Cash flows from investing activities -10,889 -18,380 -7,491 Cash flows from financing activities 27,743 10,794 -16,949 Cash and cash equi

  14. Slide 14: Financial Results Briefing for the Second Quarter of the Fiscal Year Ending May 2026

    Financial Results Briefing for the Second Quarter of the Fiscal Year Ending May 2026 Summary of Financial Results for the 01. First Half of the Fiscal Year Ending May 2026 Earnings Forecast for the Fiscal Year 02. Ending May 2026 14 Copyright2026 KUSURI NO AOKI HOLDINGS CO.,LTD. All Rights Reserved.

  15. Slide 15: Store Opening/Closing Plan

    Store Opening/Closing Results No. of Store opening/closing plan for FY May 2026 No. of stores at stores at end of FY Opening M&A end of FY May 2025 Hokushinetsu Tohoku Kanto Tokai Kansai Shikoku total (SM) Closing May 2026 [1] Drugstores 1,004 21 19 21 13 18 18 110 - 8 1,106 [2] Attached dispensing

  16. Slide 16: Capital Investment Plan

    Capital Investment Plan (Unit: Million yen) Full-year results for FY May 2025 Full-year plan for FY May 2026 Lease Lease YoY Acquisition Total Acquisition Total assets assets change 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

  17. Slide 17: Consolidated Earnings Forecast

    Consolidated Earnings Forecast Full-year results for FY May Full-year plan for FY May 2026 2025 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% Operat

  18. Slide 18: Consolidated Earnings Forecast (Excluding Stock-Based Compensation)

    Consolidated Earnings Forecast * Excluding stock-based compensation expenses Full-year results for FY May Full-year plan for FY May 2026 2025 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 expe

  19. Slide 19: Plan by Area

    Plan by Area Full-year results for FY May 2025 Full-year plan for FY May 2026 Ratio of Ratio of Composition Number of Composition YoY Number of Million yen stores with Million yen stores with ratio stores dispensaries ratio change stores dispensaries Hokushinetsu 212,789 42.4% 388 70.1% 223,241 39.9

  20. Slide 20: Plan by Product Division

    Plan by Product Division Full-year results for FY May Full-year plan for FY May 2026 2025 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

  21. Slide 21: SGA Plan

    SGA Plan Full-year results for FY May Full-year plan for FY May 2026 2025 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%

  22. Slide 22: SGA Plan (Excluding Stock-Based Compensation)

    SGA Plan * Excluding stock-based compensation expenses Full-year results for FY May Full-year plan for FY May 2026 2025 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% 106.7% Real estate cost 32,457 6.5%

  23. Slide 23: 50th Anniversary Vision – Fourth Medium-term Management Plan

    50th Anniversary Vision – Fourth Medium-term Management Plan – January 7, 2026 KUSURI NO AOKI HOLDINGS CO., LTD. Hironori Aoki, Representative Director and President (TSE Prime Section Code: 3549)

  24. Slide 24: 50th Anniversary Vision

    50th Anniversary Vision – Fourth Medium-term Management Plan – Review of the Third Medium-term 01. Management Plan 40 Years of Progress and the 50th 02. Anniversary Vision 03. Fourth Medium-term Management Plan 24 Copyright2026 KUSURI NO AOKI HOLDINGS CO.,LTD. All Rights Reserved.

  25. Slide 25: Vision2026: Sales of ¥500 billion for FY May 2026

    vision2026 Aiming to become a drugstore that supports “convenient life” and “health that makes you smile” in your town Numerical Target Sales of ¥ 500 billion for FY May 2026 25 Copyright2026 KUSURI NO AOKI HOLDINGS CO.,LTD. All Rights Reserved.

  26. Slide 26: 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 26 Copyright2026 KUSURI NO AOKI HOLDINGS CO.,LTD. All Rights Reserved.

  27. Slide 27: [1] Transformation to Food & Drug

    [1] Transformation to Food & Drug  A new format (400 tsubo) with an expanded food section has been developed, enabling to offer a wide selection of produce and food items.  Following the 400-tsubo format development, remodeling to introduce produce section in 300-tsubo stores was launched. All sto

  28. Slide 28: [2] Ratio of stores with dispensaries 70%

    [2] Ratio of stores with dispensaries 70%  The difficulty in hiring pharmacists has delayed store openings. The ratio of stores with dispensaries was 62.7% (FY May 2026 plan), falling below the initial target of 70%.  As a positive effect of our active approach to free test offering, the recogniti

  29. Slide 29: [3] Dominant strategy

    [3] Dominant strategy  Over the past five years (FY May 2021 to FY May 2025), 403 stores were opened (Company’s own: 354, Acquired through M&A: 49).  Due to a slowdown in company’s own store openings, the initial plan (opening 100 stores per year) was not achieved.  Store openings through M&A hav

  30. Slide 30: [3] Dominant strategy - Implementation of M&A

    [3] Dominant strategy - Implementation of M&A -  Starting from FY May 2021, we have implemented M&A of local supermarkets to strengthen area- specific produce merchandising and secure prime locations.  By FY May 2025, we had acquired 18 companies through M&A (total: sales of 88 billion yen, 129 st

  31. Slide 31: Review of the Third Medium-term Management Plan

    Review of the Third Medium-term Management Plan (FY May 2021 to FY May 2026)  The three priority measures coupled with rising prices boosted the frequency of customer visits at both new and existing stores, restoring sales to levels of five years ago.  The CAGR over the last three years remained s

  32. Slide 32: Review of the Third Medium-term Management Plan (KPIs)

    Review of the Third Medium-term Management Plan (FY May 2021 to FY May 2026) Sales Gross profit margin Number of stores 5600 1125 5014 1036 28.0% 953 4368 903 826 3788 733 3283 27.0% 630 27.3% 26.5% 25.8% 2022 2023 2024 2025 2026 2022 2023 2024 2025 2026 2020 2021 2022 2023 2024 2025 2026 (Plan) (Pl

  33. Slide 33: Achievements and Future Challenges in the Third Medium-term Plan

    Achievements and Future Challenges in the Third Medium-term Management Plan Achievements of Priority Measures Future Challenges Intensifying competition year by year, Achieved ¥500 billion in sales Declining birthrate and aging population, one year ahead of schedule Rising prices,Labor shortage, Cor

  34. Slide 34: 50th Anniversary Vision

    50th Anniversary Vision – Fourth Medium-term Management Plan – Review of the Third Medium-term 01. Management Plan 40 Years of Progress and the 50th 02. Anniversary Vision 03. Fourth Medium-term Management Plan 34 Copyright2026 KUSURI NO AOKI HOLDINGS CO.,LTD. All Rights Reserved.

  35. Slide 35: KUSURI NO AOKI: Years of Transformation

    KUSURI NO AOKI: 156 Years of Transformation  Since its founding as a pharmaceutical wholesaler in 1869, the Company has transformed its business to adapt to changing times.  In 1985, the Company went through business form changeover to a drugstore and established KUSURI NO AOKI Co., Ltd.  Since 1

  36. Slide 36: 50th Anniversary Vision: Sales of ¥1 trillion for FY May 2035

    50th Anniversary Vision Aiming to become a drugstore that supports “convenient life” and “health that makes you smile” in your town Numerical Target: Sales of ¥1 trillion for FY May 2035 (Top 20 Retailers) 36 Copyright2026 KUSURI NO AOKI HOLDINGS CO.,LTD. All Rights Reserved.

  37. Slide 37: Medium-term Management Plan

    50th Anniversary Vision Medium-term Management Plan The Third Medium-term The Fourth Medium-term The Fifth Medium-term Management Plan Management Plan Management Plan FY May 2022–FY May 2026 FY May 2026–FY May 2030 FY May 2031–FY May 2035 FY May 2025 Results FY May 2030 Target FY May 2030 Target Sal

  38. Slide 38: Positioning of the Medium-term Management Plan

    Positioning of the Medium-term Management Plan  Based on our Management Philosophy, we have formulated a 50th Anniversary Vision to achieve sustainable growth.  We have re-examined our material issues toward KUSURI NO AOKI’s 50th anniversary.  To achieve the long-term goal of the 50th Anniversary

  39. Slide 39: 50th Anniversary Vision

    50th Anniversary Vision – Fourth Medium-term Management Plan – Review of the Third Medium-term 01. Management Plan 40 Years of Progress and the 50th 02. Anniversary Vision 03. Fourth Medium-term Management Plan 39 Copyright2026 KUSURI NO AOKI HOLDINGS CO.,LTD. All Rights Reserved.

  40. Slide 40: Key Strategies

    Fourth Medium-term Management Plan (FY May 2026–FY May 2030)  Since our founding, we have been pursuing convenience of the store, aiming to become a drugstore and dispensing pharmacy that supports local customers.  Since we achieved the Third Medium-term Management Plan one year ahead of schedule,

  41. Slide 41: Key Strategies of the Medium-term Management Plan

    Key Strategies of the Medium-term Management Plan Policy Evolution of Food & Drug + Dispensing Improving Strengthening the earnings structure Promoting M&A produce expertise  Increase in format size  EDLP & low-cost operations  Opening 400 stores (including  Enhancement of merchandizing M&A), wi

  42. Slide 42: [1] Improving produce expertise - Increase in format size

    [1] Improving produce expertise - Increase in format size -  450-tsubo concessionary format has been expanded to 500 tsubo. Maximize product selection and convenience through larger store formats.  Company’s own store opening strategy has been revised. Shift from “high-speed opening with 300-tsubo

  43. Slide 43: [1] Improving produce expertise - Increasing produce sales

    [1] Improving produce expertise - Increasing produce sales -  Produce sales have grown significantly over the past three years after the remodeling.  Going forward, aim to more than double produce sales by enhancing the merchandising and Unit: ¥100 Million operational levels of four produce items.

  44. Slide 44: Establishment of three new process centers and logistics restructuring

    [1] Improving produce expertise - Establishment of three new process centers and restructuring of logistics network -  In 2025, we established our own produce process center (PC) in the Hokuriku area and began operational model verification.  Going forward, three PCs will be established nationwide

  45. Slide 45: [2] Transformation of earnings structure - Improvement of private brand ratio

    [2] Transformation of earnings structure - Improvement of private brand (PB) ratio -  The launch of “A&” in 2021 marked a start of PB development in full swing.  Our product offerings have been expanded to include food, general merchandise, and pharmaceuticals, achieving growth in sales to 30 bill

  46. Slide 46: [3] Promoting M&A - Establishment of a stable store opening system

    [3] Promoting M&A - Establishment of a stable store opening system -  Over the past five years (from FY May 2021 to FY May 2025), 403 stores were opened (Company’s own: 354, M&A: 49).  We plan 400 new store openings over the five-year period (from FY May 2026 to FY May 2030).  Promote M&A to make

  47. Slide 47: [3] Promoting M&A - Scheduled M&A projects in FY May 2026

    [3] Promoting M&A - Scheduled M&A projects in FY May 2026 -  Acquire three companies through M&A in FY May 2026 (sales: 42.3 billion yen, number of stores: 38).  Acquired a total of 21 companies through M&A as of 2Q of FY May 2026 (total: sales 130.3 billion yen, number of stores: 167).  Through

  48. Slide 48: Headquarters Concept

    Headquarters Concept  Expanding our business locations to enhance our capability to execute management strategies, accelerate decision- making, and maximize human capital  Shifting toward a “three-area headquarters system” comprising the Hokuriku Headquarters plus two area headquarters (Saitama an

  49. Slide 49: Cash Allocation

    Cash Allocation  Maintain allocation to active growth investments centered on store development investments(¥200 billion).  Undertake a fundamental review of the shareholder return policy(Dividend payout ratio: 30%). Cash In Cash Out Growth investment amount: ¥200 billion (Cumulative forecast for

  50. Slide 50: Shareholder Return Policy

    Shareholder Return Policy Implementation of a fundamental review of the shareholder return policy  Increase the dividend payout ratio to 30% Dividend  Pay a 40th Anniversary Dividend (+ 40 yen) at the end of FY May 2026 and Increase the dividend payout ratio to 30%.  Implement a share buyback of

  51. Slide 51: Change in Listing Market Segment

    Change in Listing Market Segment  To achieve our new medium-term management plan, we will concentrate management resources under more appropriate market segments to pursue sustainable growth and maximize shareholder value. Tokyo Stock Listing market change to the Standard Exchange Market segment Na

  52. Slide 52: Management Philosophy

    Management Philosophy Management Philosophy Contributing to society through health, beauty, and hygiene 52 Copyright2026 KUSURI NO AOKI HOLDINGS CO.,LTD. All Rights Reserved.

  53. Slide 53: Disclaimer

    Disclaimer The data and forward-looking statements in this document represent the Company’s judgment based on currently available information and contain potential risks and uncertainties. These statements may be subject to change without prior notice due to factors such as changes in the business e

Kusuri No Aoki Holdings — Q2 FY May 2026 Earnings Presentation on 6ix