Ain Holdings Inc. · TSE:9627

Ain — Q1 FY4/18 Earnings Presentation

25 slides from Ain's earnings presentation, September 2017

  1. Slide 1: IR Presentation September 2017

    IR PRESENTATION September 2017

  2. Slide 2: Results Overview

    Results Overview © 2017 AIN HOLDINGS INC. All Rights Reserved. 1

  3. Slide 3: Consolidated P/L

    Consolidated P/L Net sales increased 14.3% year on year and 2.9% against the plan due to firm growth in same stores and stores that are opened in previous year. Ordinary income increased 74.0% year on year and 31.6% against the plan due to the increase of net sales and the decrease of costs by impro

  4. Slide 4: Dispensing Pharmacy Business (Consolidated)

    Dispensing Pharmacy Business（Consolidated） Net sales increased 14.6% year on year and 2.8% against the plan due to the increase of prescription volume and average prescription price in same stores and stores that are opened in the previous year. Segment income increased 40.3% year on year and 14.8%

  5. Slide 5: Drug and Cosmetic Store Business (Consolidated)

    Drug and Cosmetic Store Business(Consolidated) Net sales increased 11.1% year on year and 3.9% against the plan due to contribution of stores that are opened in the previous year and improvement of ability to attract customers in same stores. Segment income turned positive to ¥37 million due to impr

  6. Slide 6: Consolidated B/S

    Consolidated B/S Net cash became ¥3,132 million and shareholders’ equity ratio became 39.0% due to the decrease of long-term debt. (¥ million) (¥ million) End-FY4/17 End-FY4/18 1Q Assets Liabilities Assets Liabilities Current assets Current liabilities 72,955 Current assets Current liabilities 73,71

  7. Slide 7: Assets

    Assets The balance of total assets decreased by ¥625 million compared to those in the fiscal year ended April 2017 due to the decrease of notes and accounts receivable and goodwill etc. (¥ million) End-FY4/17 1Q End-FY4/17 End-FY4/18 1Q Change Cash on hand and in banks 26,822 29,775 29,500 (275) Not

  8. Slide 8: Liabilities and Net Assets

    Liabilities and Net Assets The total liabilities decreased by ¥1,163 million compared to those in the fiscal year ended April 2017 due to the repayment of debts etc. (¥ million) End-FY4/17 1Q End-FY4/17 End-FY4/18 1Q Change Accounts payable 38,320 39,325 41,779 +2,454 Short-term debt 8,477 7,596 8,5

  9. Slide 9: FY4/18 Plan (Consolidated)

    FY4/18 Plan (Consolidated) We expect that net sales increase 7.8% year on year by new openings (100 pharmacies in dispensing pharmacy business and 8 stores in drug and cosmetic store business). We also expect that ordinary income increase 12.7% by the promotion of the use of generic drugs, calculati

  10. Slide 10: 1Q Review

    1QReview © 2017 AIN HOLDINGS INC. All Rights Reserved. 9

  11. Slide 11: Analysis of Results ① (vs FY4/17 1Q results)

    Analysis of Results ①（vs FY4/17 1Q results）  Net sales +¥1.8 billion ¥(1.4) billion Technical fees of Close of unprofitable YoY YoY +¥0.3 billion existing stores etc. stores FY4/17 1Q FY4/18 1Q New stores results results change change(%) openings (¥ million) Net sales 57,819 66,095 +8,276 +14.3 +¥7

  12. Slide 12: Analysis of Results ② (vs FY4/18 1Q plan)

    Analysis of Results ②（vs FY4/18 1Q plan）  Net sales ¥(0.2) billion Downturn of new stores openings in this term FY4/18 1Q FY4/18 1Q Vs plan plan Vs plan results (%) （¥ million） +¥1.9 billion Technical fees of existing Net sales 64,257 66,095 1,838 +2.9 stores etc. +¥1.8 billion +2.9% +¥0.1 billion

  13. Slide 13: Transition of Sales from Drugs per Prescription

    Transition of Sales from Drugs per Prescription  Transition of Hepatitis C drugs’ sales (¥ million) 800 FY4/17 results 600 FY4/18 results Net sales 400 Prescriptions of Hepatitis C drugs were higher than our plan 200 FY4/18 plan 0 May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Aggregate

  14. Slide 14: Response to Dispensing Fee Revisions of 2016 ①

    Response to Dispensing Fee Revisions of 2016 ① Comparison of 590 pharmacies of 4 main existing companies (¥) March July After Points April 2016 Change Change 2016 2017 Except following 41 1 (31) Over 4,000 times and over 70% 25 2 or Over 2,000 times and over 90% 382.9 312.9 (70.0) 337.1 (45.8) Basic

  15. Slide 15: Response to Dispensing Fee Revisions of 2016 ②

    Response to Dispensing Fee Revisions of 2016 ② Comparison of 590 pharmacies of 4 main existing companies  Ratio of pharmacies that receive basic dispensing fees  Ratio of pharmacies that receive standards for dispensing system premiums (Store) 1,000 Basic dispensing fee1 (41points) (Store) 1,000 5

  16. Slide 16: Top-Line

    Top-Line We opened 11 stores including M&As in FY4/18 1Q. We forecast the number of stores in the end of FY4/18 will be 1,189 by opening 108 stores and closing 37 stores.  Total number of stores 1,106 (Dispensing pharmacy:1,054 Drug and cosmetic store:52) Hokkaido  Plan FY4/18 1Q FY4/18 124 Plan R

  17. Slide 17: FY4/18 Plan (Dispensing Pharmacy Business)

    FY4/18 Plan (Dispensing Pharmacy Business) +¥1.3 billion ¥(4.1) billion  Net sales Technical fees of Decrease of hepatitis C, existing stores etc. impact of revisions of 2018, And promotion of GE drugs, etc YoY +¥7.8 billion FY4/17 FY4/18 YoY New 100 stores change openings ¥(3.7) billion results pl

  18. Slide 18: Analysis of Results (Drug and Cosmetic Store Business)

    Analysis of Results Same stores are shifting well by increase of visibility from customers, store renovations and measurement of sales promotion. Also, earning capacity is being improved by increase of operating efficiency and review of sales promotion expenses etc. ■ Analysis of results YoY Vs plan

  19. Slide 19: FY4/18 Plan (Drug and Cosmetic Store Business)

    FY4/18 Plan (Drug and Cosmetic Store Business）  Net sales YoY +¥0.6 billion FY4/17 FY4/18 YoY change Existing stores results plan change ¥(1.1) billion (%) +¥1.1 billion (¥ million) Close of unprofitable New 8 stores stores openings Net sales 21,383 23,600 +2,217 +10.4 ＋¥1.6 billion Full contributi

  20. Slide 20: Supplementary Information

    Supplementary Information © 2017 AIN HOLDINGS INC. All Rights Reserved. 19

  21. Slide 21: Dispensing Fee Revisions of 2016

    Dispensing Fee Revisions of 2016 Before Points After Points Except following 41(31) 1 Except following 41(31) Over 4,000 times and over 70% 2 or Over 2,000 times and over 90% 25(19) Basic dispensing fee Over 4,000 times and over 70% 25(19) or Over 4,000 times from specific hospital Over 2,500 times

  22. Slide 22: Company Profile

    Company Profile Trade name AIN HOLDINGS INC. Representative Kiichi Otani, President and Representative Director Established August 1969 Market capitalization ¥244,782 million As of April 30, 2017 Net sales and Net sales: ¥248,110 million Operating income: ¥14,563 million As of April 30, 2017 operati

  23. Slide 23: Comparison to Other Companies: Operating Margin

    Comparison to other companies (%) 8.0 7.0 6.0 B company C company 5.0 Operating margin E company A company AIN HOLDINGS Net sales：¥248,110 million 4.0 Operating margin：5.9% Market capitalization：¥244,782 million 3.0 D company 2.0 1.0 0.0 0 40,000 80,000 120,000 160,000 200,000 240,000 (¥ million) Ne

  24. Slide 24: 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 http://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 has

  25. Slide 25: AIN GROUP

    AIN GROUP

AIN Holdings — Q1 FY4/18 Earnings Presentation on 6ix