Kusuri No Aoki Holdings Co.,ltd. · TSE:3549
Kusuri No Aoki Holdings Co.,ltd — H1 FY2025 Earnings Presentation
48 slides from Kusuri No Aoki Holdings Co.,ltd's earnings presentation, Jan 8, 2025
Slide 1: Financial Results Briefing for the Second Quarter of Fiscal Year Ending May 2025
Financial Results Briefing for the Second Quarter of Fiscal Year Ending May 2025 KUSURI NO AOKI HOLDINGS CO., LTD. (TSE Prime Section Code 3549) January 8, 2025 Hironori Aoki
Slide 2: Summary of Financial Results and Third Medium-term Management Plan Progress
1 Summary of Financial Results for the First Half of the Fiscal Year Ending May 2025 and Earnings Forecast for the Fiscal Year Ending May 2025 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 for the First Half and Earnings Forecast
1 Summary of Financial Results for the First Half of the Fiscal Year Ending May 2025 and Earnings Forecast for the Fiscal Year Ending May 2025 Summary of Financial Results for the First 1 Half of the Fiscal Year Ending May 2025 Earnings Forecast for the Fiscal Year 2 Ending May 2025 Copyright2025 KU
Slide 4: Store Opening/Closing Results
Store Opening/Closing Results Store opening and closing results First half of FY May 2025 No. of No. of stores at stores at end of 1H end of FY Opening M&A Hokushinetsu Tohoku Kanto Tokai Kansai Shikoku Closing FY May May 2024 total (SM) 2025 [1] Drugstores 936 5 1 3 2 1 3 15 - - 951 [2] Attached di
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 All stores for previous year Existing stores for previous year sales for cumulative 1H 125.0% All stores: 111.6% Existing stores: 107.0% 120.0% 115.0% 113.1% 112.8% 110.6% 11
Slide 6: 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 at existing The number of customers for previous year Average spending per cust
Slide 7: Consolidated Profit and Loss Statement (Year-on-Year Change)
Consolidated Profit and Loss Statement (Year-on-Year Change) FY May 2024 FY May 2025 1H results 1H results Million yen Sales ratio Million yen Sales ratio YoY change Sales 215,622 100.0% 242,826 100.0% 112.6% Gross profit 58,836 27.3% 64,356 26.5% 109.4% SGA expenses 52,016 24.1% 51,704 21.3% 99.4%
Slide 8: Consolidated P&L (Year-on-Year Change) Excluding Stock-based Compensation
Consolidated Profit and Loss Statement (Year-on-Year Change) *Excluding stock-based compensation expense FY May 2024 FY May 2025 Reference: 1H results (excluding stock-based Reference: 1H results (excluding stock-based compensation expense) compensation expense) Million yen Sales ratio Million yen S
Slide 9: Consolidated Profit and Loss Statement (versus Plan)
Consolidated Profit and Loss Statement (versus Plan) FY May 2025 FY May 2025 1H plan 1H results Million yen Sales ratio Million yen Sales ratio vs. Plan Sales 240,000 100.0% 242,826 100.0% 101.2% Gross profit 63,971 26.7% 64,356 26.5% 100.6% SGA expenses 51,864 21.6% 51,704 21.3% 99.7% Operating inc
Slide 10: Consolidated P&L (versus Plan) Excluding Stock-based Compensation
Consolidated Profit and Loss Statement (versus Plan) *Excluding stock-based compensation expense FY May 2025 FY May 2025 Reference: 1H plan (excluding stock- Reference: 1H results (excluding stock-based based compensation expense) compensation expense) Million yen Sales ratio Million yen Sales ratio
Slide 11: Results by Area
Results by Area FY May 2024 FY May 2025 1H results 1H 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 99,255 46.0% 364 70.0% 105,342 43.4% 106.1% 378 71.4
Slide 12: Results by Product Division
Results by Product Division FY May 2024 FY May 2025 1H results 1H results Difference in Composition Composition Million yen Million yen composition YoY change ratio ratio ratio Health 20,730 9.6% 21,225 8.7% -0.9% 102.4% Beauty 28,415 13.2% 30,563 12.6% -0.6% 107.6% Daily commodities 41,042 19.0% 44
Slide 13: Results of SGA Expenses (Year-on-Year Change)
Results of SGA Expenses (Year-on-Year Change) FY May 2024 FY May 2025 1H results 1H results Million yen Sales ratio Million yen Sales ratio YoY change Labor cost 25,654 11.9% 22,675 9.3% 88.4% Sales promotion cost 1,347 0.6% 1,353 0.6% 100.4% Real estate cost 14,397 6.7% 15,769 6.5% 109.5% Other exp
Slide 14: Results of SGA Expenses (Year-on-Year) Excluding Stock-based Compensation
Results of SGA Expenses (Year-on-Year Change) *Excluding stock-based compensation expense FY May 2024 FY May 2025 Reference: 1H results (excluding stock- Reference: 1H results (excluding stock-based based compensation expense) compensation expense) Million yen Sales ratio Million yen Sales ratio YoY
Slide 15: Results of SGA Expenses (versus Plan)
Results of SGA Expenses (versus Plan) FY May 2025 FY May 2025 1H plan 1H results Million yen Sales ratio Million yen Sales ratio vs. Plan Labor cost 23,007 9.6% 22,675 9.3% 98.6% Sales promotion cost 1,497 0.6% 1,353 0.6% 90.4% Real estate cost 16,022 6.7% 15,769 6.5% 98.4% Other expenses 11,336 4.7
Slide 16: Results of SGA Expenses (versus Plan) Excluding Stock-based Compensation
Results of SGA Expenses (versus Plan) *Excluding stock-based compensation expense FY May 2025 FY May 2025 Reference: 1H plan (excluding stock- Reference: 1H results (excluding stock-based based compensation expense) compensation expense) Million yen Sales ratio Million yen Sales ratio vs. Plan Labor
Slide 17: Consolidated Balance Sheet
Consolidated Balance Sheet As of May 20, 2024 As of November 20, 2024 Composition Composition Change from Increase/ Million yen Million yen ratio ratio May 20, 2024 Decrease Cash and deposits 49,125 16.2% 77,038 22.1% 156.8% 27,913 Inventory assets 47,792 15.7% 52,201 15.0% 109.2% 4,409 Current asse
Slide 18: Cash Flow Statement
Cash Flow Statement (Million yen) Increase/ FY May 2024/1H FY May 2025/1H Decrease Cash flows from operating activities 14,812 11,210 -3,602 Cash flows from investing activities -11,567 -10,889 678 Cash flows from financing activities -4,227 27,743 31,970 Cash and cash equivalents at the end 41,888
Slide 19: Earnings Forecast for the Fiscal Year Ending May 2025
1 Summary of Financial Results for the First Half of the Fiscal Year Ending May 2025 and Earnings Forecast for the Fiscal Year Ending May 2025 Summary of Financial Results for the First 1 Half of the Fiscal Year Ending May 2025 Earnings Forecast for the Fiscal Year 2 Ending May 2025 Copyright2025 KU
Slide 20: Store Opening/Closing Plan
Store Opening/Closing Plan No. of Store opening and closing plan FY May 2025 No. of stores at stores at end of FY Opening M&A end of FY Hokushinetsu Tohoku Kanto Tokai Kansai Shikoku Closing May 2024 total (SM) May 2025 [1] Drugstores 936 19 6 11 21 6 7 70 - - 1,006 [2] Attached dispensing 594 17 8
Slide 21: Capital Investment Plan
Capital Investment Plan FY May 2024 FY May 2025 Full-year results (Million yen) Full-year plan (Million yen) Lease Lease Acquisition Total Acquisition Total YoY change assets assets Store investment 11,189 1,154 12,343 18,972 2,295 21,267 172.3% (New opening) Store investment 1,961 - 1,961 1,526 - 1
Slide 22: Full-Year Earnings Forecast
Full-Year Earnings Forecast FY May 2024 FY May 2025 Full-year results Full-year plan Million yen Sales ratio Million yen Sales ratio YoY change Sales 436,875 100.0% 485,000 100.0% 111.0% Gross profit 118,090 27.0% 128,786 26.6% 109.1% SGA expenses 99,521 22.8% 103,679 21.4% 104.2% Operating income 1
Slide 23: Full-Year Earnings Forecast (Excluding Stock-based Compensation Expense)
Full-Year Earnings Forecast (Excluding Stock-based Compensation Expense) FY May 2024 FY May 2025 Full-year results (excluding stock- Full-year plan (excluding stock-based based compensation expense) compensation expense) Million yen Sales ratio Million yen Sales ratio YoY change Sales 436,875 100.0%
Slide 24: Plan by Area
Plan by Area FY May 2024 FY May 2025 Full-year results Full-year plan Ratio of Ratio of Million Composition Number stores with Million Composition YoY Number of stores with yen ratio of stores dispensaries yen ratio change stores dispensaries Hokushinetsu 199,343 45.6% 373 68.9% 210,650 43.4% 105.7%
Slide 25: Plan by Product Division
Plan by Product Division FY May 2024 FY May 2025 Full-year results Full-year plan Difference in Composition Composition Million yen Million yen composition YoY change ratio ratio ratio Health 42,140 9.6% 44,353 9.1% -0.5% 105.3% Beauty 56,187 12.9% 59,340 12.2% -0.6% 105.6% Daily commodities 80,977
Slide 26: SGA Plan
SGA Plan FY May 2024 FY May 2025 Full-year results Full-year plan Million yen Sales ratio Million yen Sales ratio YoY change Labor cost 46,328 10.6% 46,250 9.5% 99.8% Sales promotion cost 2,788 0.6% 3,128 0.6% 112.2% Real estate cost 29,533 6.8% 32,452 6.7% 109.9% Other expenses 20,870 4.8% 21,850 4
Slide 27: SGA Plan (Excluding Stock-based Compensation Expense)
SGA Plan (Excluding Stock-based Compensation Expense) FY May 2024 FY May 2025 Full-year results (excluding stock- Full-year plan (excluding stock-based based compensation expense) compensation expense) Million yen Sales ratio Million yen Sales ratio YoY change Labor cost 39,518 9.0% 45,857 9.5% 116.
Slide 28: 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 Three and a 2 Half Years and Outlook for the Final Fiscal Year Copyright2025 KUSURI NO AOKI HOLDINGS CO.LTD. All Rights Reserved. 28
Slide 29: Vision 2026: Make Life More Convenient, Smile All the Times
Vision 2026 Make Life More Convenient, Smile All the Times あなたの町で、「便利な暮らし」と「笑顔につながる健康」を支えるド Aiming to become a drugstore that supports “convenient life” ラッグストアを目指して and “health that makes you smile” in your town Copyright2025 KUSURI NO AOKI HOLDINGS CO.LTD. All Rights Reserved. 29
Slide 30: 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. 30
Slide 31: Numerical Target: Sales of ¥500 billion for FY May 2026
Numerical Target Sales for FY May 2026 ¥500 billion (¥100 Million) 1st 2nd 3rd 5000 4850 4367 3788 3283 3001 3058 2508 2212 1887 1616 1349 1144 931 761 647 539 * Effective from the beginning of the fiscal year ended May 2022, the Company adopted the “Accounting Standard for Revenue Recognition”. Cop
Slide 32: Results of Efforts Made for Three and a Half Years and Outlook
2 Progress Status of the Third Medium-term Management Plan (for five years) 1 Overview Results of Efforts Made for Three and a 2 Half Years and Outlook for the Final Fiscal Year Copyright2025 KUSURI NO AOKI HOLDINGS CO.LTD. All Rights Reserved. 32
Slide 33: 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 Store opening rate: 10% 300 tsubo ► ► Suburb, countryside (From 2010) ► Medium-size store ► S
Slide 34: Strong Point of 400-tsubo format
Strong Point 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 Copyright2
Slide 35: 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 - Renovation of 500 stores with a 300-tsubo format was completed over the two-year period from FY2023 to FY2024 - Plan to renovate 200 store
Slide 36: 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) will have delicatessen sections. At the end of FY May 2025 Ratio of stores with delicatessen sections to total number of sto
Slide 37: 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 for 1H of FY ending May 2025 All stores Existing stores 120.0% Sales: 107.0% 117.1% No. of customers: 104.4% 115.4% Average spending per custo
Slide 38: Accelerating Opening of Dispensing Pharmacies
Accelerating Opening of Dispensing Pharmacies - Aim to achieve the ratio of stores with dispensaries of 70% by FY ending May 2026. - Ratio of stores with dispensaries at the end of FY ending May 2025: 66.0%, Planning to open 70 pharmacies in the full year Ratio of stores with dispensaries at the end
Slide 39: New Graduate Recruitment Status
New Graduate Recruitment Status - The plan to employ 709 new graduates for FY ended May 2024 was not achieved. - The plan of employment for FY ending May 2025 is 950 persons, the maximum number in the past. Mynavi Popular Company Pharmacist recruitment Career positions recruitment Ranking Hokuriku a
Slide 40: Trends in Number of 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 (including business form changeover from the stores acquired by M&A) - Number of stores newly opened in FY ending May 2025: 70 (including business form changeover from
Slide 41: Recent M&A Status [1] (First Entry into Shikoku Area)
Recent M&A Status [1] (First Entry into Shikoku Area) - 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., Ltd. on September 30, 2024 - Absorption and merger of Kimuraya Co., Ltd. (Super Guts) on Aug
Slide 42: Recent M&A Status [2] (Domination in Kansai Area)
Recent M&A Status [2] (Domination in Kansai Area) - Consolidation of Happy Terada, Co. Ltd. as a subsidiary on December 20, 2024 - Absorption and merger of Super Yoshimura and Hustle, aiming for first entry into Wakayama Prefecture. (Scheduled for February 2025) Happy Terada Super Yoshimura and Hust
Slide 43: Recent M&A Status [3] (Domination in Tohoku Area)
Recent M&A Status [3] (Domination in Tohoku Area) - Business acquisition of Fushimiya Group was announced on December 5, 2024. (Scheduled for February 2025) - First entry into Akita Prefecture will be achieved by business transfer of Fushimiya Group. Fushimiya Group Honma Bussan Co., Ltd. Topmart Co
Slide 44: 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 18 companies: 88.0 billion yen, total number of stores: 129 B
Slide 45: Store Opening Results for the First Half of FY Ending May 2025
Store Opening Results for the First Half of FY May 2025 - Number of stores newly opened in the first half of FY ending May 2025: 15 drugstores and 40 pharmacies 1H of FY May 2025: No. of drugstores newly opened/No. of stores at FY end by area All areas Newly Opened Hokushinetsu area (DG) 1H End Toho
Slide 46: Store Opening Plan for FY Ending May 2025
Store Opening Plan for FY May 2025 - In FY ending May 2025, 70 drugstores and 70 pharmacies are planned to be newly opened. FY May 2025: No. of drugstores newly opened/No. of stores at FY end by area All areas Hokushinetsu area Newly Opened (DG) Year End Tohoku area 19 392 70 1018 6 72 Kansai area D
Slide 47: ¥500 billion in sales and 1000 stores
During the period of January 26, 2025 to May 20, 2026, the 40th year anniversary after foundation of the company, the opening of 1000 stores and sales of 500 billion yen will be achieved. 2026 Plan to achieve 2025 ¥500 billion in sales Plan to achieve 100th store (Tamaboko) 1000 stores 2020 Achieved
Slide 48: Make Life More Convenient, Smile All the Times
もっと便利に、ずっと笑顔で。 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 guaran
Kusuri No Aoki Holdings — H1 FY2025 Earnings Presentation on 6ix