Ain Holdings Inc.TSE: 9627

Briefing on Medium and Long term Vision Ambitious Goals 2034

Mar 18, 2025 at 6:08 AM UTC · Issued by Ain Holdings Inc.

Briefing on Medium- and Long-term Vision

Ambitious Goals 2034

March 18, 2025

Today's Topic

1.	Medium- and Long-term Vision	President and Representative Director
		Kiichi Ohtani
2.	Dispensing Pharmacy Business Strategy	Representative Senior Managing Director
		Shoichi Shudo
3.	Retail Business Strategy	Representative Senior Managing Director
		Toshihide Mizushima

1. Medium- and Long-term Vision

AIN Group's Vision

Our Vision

Aiming to be a company that people welcome to their communities

Group Statement

We are committed to ensuring our employees are happy and motivated. We want the AIN Group to be a workplace where employees seek

out new challenges to grow and develop, dedicating themselves to improving the health and happiness of customers.

Our goal is to be a leading corporate group that constantly embraces change.

Growth Trajectory

In the course of our growth, we have steadily expanded our businesses under a medium-term plan and business strategies tailored to changes in the market environment.

Net sales		Ordinary profit
Medium-term plan
(¥ billion)	(¥ billion)

500					Victory 2005		Challenge 1000	Transcend 2000			Not been set in light of changes			40

			Net sales		FY4/05			FY4/08				FY4/14				in the market environment

													399.8
400			Ordinary profit		Net sales ¥40 billion			Net sales¥100 billion		Net sales	¥200 billion

				Ordinary			Ordinary			Ordinary				CAGR (Net sales)			30


					profit	¥2.1 billion			profit	¥5 billion		profit	¥13.5 billion		6.9%

300													CAGR (Net sales)
						CAGR (Net sales)			11.0%	234.8				20


200					CAGR (Net sales)	23.0%	125.5

							106.2
						25.2%												10
100
			18.6		45.2 57.1



0																			0
	4/94	4/00		4/05			4/08	4/10		4/14	4/16	4/24
								(FY)
Number of pharmacies	50	193			130	397		616	881	1,231
Number of cosmetic stores	30	44				45	49		59	52	81
Total number of M&As	0	5				11	16		73	128	249

Medium- and Long-term Vision

Our Vision

Aiming to be a company that people welcome to their communities

Medium- and

Long-term Vision

Vision by

business segment

Ambitious Goals 2034

A decade to promote innovation and strive for our challenging goal of a trillion yen in sales

Dispensing Pharmacy Business Creating sustainable next-generation

	pharmacies with scale and efficiency
Retail Business	Pursuing concept stores sending
	sophisticated value

Quantitative Targets

Our goal is to achieve sales of ¥1 trillion in FY4/34, driven by growth in both the dispensing pharmacy and retail businesses. At the same time, we will improve capital efficiency and strengthen/maintain profitability.

■ Dispensing pharmacy business

■ Retail and other businesses

		Net sales
		¥700 billion
Net sales
¥399.8
billion		FY4/30
		13.0%
		ROE
FY4/24		Net profit margin	4.0%
ROE	8.7%	■ ¥500 billion(71.4%)
Net profit margin	2.8%	■ ¥200 billion(28.6%)
■ ¥357.5 billion (89.4%)

¥42.3 billion (10.6%)

Net sales

¥1 trillion

FY4/34

ROE15.0%

Net profit margin 4.0%

¥700 billion(70.0%)
¥300 billion(30.0%)

Roadmap for Growth

In addition to growth driven by existing stores and organic store opening, we will leverage M&As to accelerate growth. By actively investing in each business, including related businesses, we will build an optimal business portfolio for our sustainable growth.

Breakdown of net sales by business segment

Initiatives through FY4/34

Dispensing pharmacy business (■ M&A)
Retail and other businesses (■ M&A)

	¥700
CAGR (Net sales)	billion
9.1%
¥453.5
¥399.8 billion
billion	¥500 billion

	(71.4%)

¥200 billion

(28.6%)

¥1 trillion

CAGR (Net sales)

9.3%

¥700 billion

(70.0%)

¥300 billion

(30.0%)

Dispensing Pharmacy Business

Continued growth of existing stores as "the primary care pharmacy" of choice for patients, backed by proven expertise
Organic store opening in locations near medical institutions where dispensing and prescribing drugs are not separated, and in medical malls, among others
Maintain existing standards and promote M&A centered on projects that contribute to earnings

Retail and Other Businesses

Growth of both AINZ & TULPE and Francfranc, including collaboration with each brand
Consideration of M&As in pursuit of relevance and similarity inside and outside the markets in which business is conducted

FY4/24	FY4/25	FY4/30	FY4/34
	prospect	target	target

Cash Allocation

We proactively invest in store openings and M&As to expand the top line. As the Company grows, funds will be appropriately allocated to digital transformation (DX) investment (for establishing the foundation), strengthening the financial base, and shareholder return.

Cumulative total for	Cumulative total for FY4/25 to FY4/34
FY4/25 to FY4/30



		Operating	Store	¥600
		billion
	cash flows	openings,
¥270	¥230 billion	M&As, etc.
billion		¥200 billion

	Store openings, M&As, etc. ¥400 billion
		M&A
		Proactively considered
		Organic store	in both businesses
	
Operating	Maintain the current
	openings
cash flows		pace of store openings

¥480 billion
	Renovation of	Renovation to improve

		existing stores, etc.	efficiency

DX investment, etc. ¥40 billion

DX investment, etc. ¥20 billion Strengtheningof

Borrowings,

etc.

Strengthening of financial base ¥70 billion

Borrowings,

etc.

¥40 billion

financial base ¥20 billion Shareholder return ¥30 billion

¥120	Shareholder return ¥90 billion

billion

Income Expenditure

ROE

Utilizing external funds among others, we will focus on expanding the top line and improving profitability with the medium-term target of ROE of 13% in FY4/30. In the long term, we will pursue further shareholder returns and capital efficiency, including share buybacks, with the target of ROE of 15% by FY4/34.

		FY4/24 Results	FY4/30 Target	FY4/34 Target

ROE	8.7 %	13.0 %	15.0 %

Return on sales 2.8 % 4.0 % 4.0 %

Measure to improve ROE

Business growth through capital efficiency improvement
and strategic investments
Profit improvement through efficiency
Reduction in the SG&A ratio through expansion of scale

Total asset		1.6		1.6		1.6	■ Expand both businesses
turnover				while maintaining total
						asset turnover
							■ Implementation of
Financial
	1.8 ×		2.0 ×		2.3 ×	shareholder returns
leverage				■ Investment for growth

							through borrowing

Before the application of new lease accounting (please refer to the supplementary materials for the assumed application of new lease accounting)