Ain Holdings Inc. · TSE:9627
Ain — FY2018 Earnings Presentation
39 slides from Ain's earnings presentation, June 2018
Slide 1: FY4/18 IR Presentation
FY4/18 IR PRESENTATION June 2018
Slide 2: Results Overview
Results Overview © 2018 AIN HOLDINGS INC. All Rights Reserved. 1
Slide 3: Consolidated P/L
Consolidated P/L Net sales increased 8.2% year on year and 0.3% against the plan due to business growth in same stores and stores that were opened in previous year. Ordinary income increased 33.5% year on year and 8.8% against the plan due to the increase of net sales and the decrease of costs by im
Slide 4: Dispensing Pharmacy Business (Consolidated)
Dispensing Pharmacy Business (Consolidated) Net sales increased 7.6% year on year and 0.3% against the plan due to the increase of prescription volume and average prescription price in same stores and stores that were opened in the previous year. Segment income increased 18.6% year on year and 7.9%
Slide 5: Cosmetic and Drug Store Business (Consolidated)
Cosmetic and Drug Store Business (Consolidated) Net sales increased 12.8% year on year and 2.2% 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 increasing ￥1,523million year on year to
Slide 6: Consolidated B/S
Consolidated B/S Net cash increased by ¥42,103 million to ¥44,474 million and shareholders’ equity ratio became 52.7% by fund-raising through a public offering and private placements. (¥ million) (¥ million) End-FY4/17 End-FY4/18 Assets Liabilities Assets Liabilities Current assets 72,955 Current as
Slide 7: Assets
Assets The balance of total assets increased ¥27,112 million from the end of the previous fiscal year due to fund-raising through a public offering and private placements. (¥ million) End-FY4/16 End-FY4/17 End-FY4/18 Change Cash on hand and in banks 22,647 29,775 63,779 +34,004 Fund- Notes and accou
Slide 8: Liabilities and Net Assets
Liabilities and Net Assets The balance of liabilities decreased ¥9,442 million from the end of the previous fiscal year due to the repayment of debts etc. (¥ million) End-FY4/16 End-FY4/17 End-FY4/18 Change Accounts payable 39,987 39,325 38,728 (597) Short-term debt 5,690 7,596 6,717 (879) Lease obl
Slide 9: Consolidated C/F
Consolidated C/F The change of net increase in cash and cash equivalents became ¥33,999 million due to fund- raising through a public offering and private placements, etc. (¥ million) FY4/17 FY4/18 Change Net cash provided by operating activities 18,409 21,656 +3,247 Profit before income taxes 14,30
Slide 10: Business Value Analysis
Business Value Analysis FY4/16 FY4/17 FY4/18 Change Shareholders’ equity ratio (%) 38.1 38.4 52.7 +14.3 Market value equity ratio (%) 121.0 156.6 141.0 (15.6) PER (times) 21.39 30.79 23.54 (7.25) EPS (¥) 249.69 250.71 310.08 +59.37 PBR (times) 3.19 4.09 2.67 (1.42) BPS (¥) 1,679.69 1,895.63 2,729.44
Slide 11: FY4/19 Plan (Consolidated)
FY4/19 Plan (Consolidated) The group forecasts net sales for the fiscal year ending April 30, 2019 of 272,870 million, increase 1.7% year on year by openings new stores (100 pharmacies and 7 Cosmetic and drug stores) , ordinary income decrease 10.6% due to the dispensing fee revisions. FY4/17 FY4/18
Slide 12: Review / Revision of 2018 Growth Strategy
Review Revision of 2018 Growth Strategy © 2018 AIN HOLDINGS INC. All Rights Reserved. 11
Slide 13: Review
Review © 2018 AIN HOLDINGS INC. All Rights Reserved. 12
Slide 14: Review① (Vs FY4/17 Results)
Review①（Vs FY4/17 Results） +¥0.7 ■ Net sales +¥3.8 billion billion ¥(5.2) billion New stores AYURA Close of Mail order unprofitable stores YoY +¥4.5 billion FY4/17 FY4/18 YoY etc. change Existing stores results results change (%) (¥ million) +¥20.2 Net sales 248,110 268,385 +20,275 +8.2 +¥16.4 billi
Slide 15: Review② (Vs plan)
Review②（Vs plan） ■ Net sales +¥1.2 billion ¥(1.3) billion Existing stores Unachieved FY4/18 FY4/18 Vs plan openings Vs plan plan results (%) of this year (¥ million) ¥(0.6) billion Net sales 267,500 268,385 +885 +0.3 +¥1.5 billion Close of Unprofitable stores Other Previous year’s openings +¥0.8 Gro
Slide 16: Revision of 2018
Revision of 2018 © 2018 AIN HOLDINGS INC. All Rights Reserved. 15
Slide 17: Dispensing Fee Revisions of 2018
Dispensing Fee Revisions of 2018 Basic dispensing fee（New classification requirements ） 1 41 pts 2 Over 4,000 times & 70% or Over 2,000 times & Over 85% or Over 4,000 times 25 pts from specific hospital 3-Ⅰ 20 pts Same group over 40,000 times / month & Over 85% or lease contract with medical insti
Slide 18: Basic dispensing fee・Community support system premiums
Basic dispensing fee・Community support system premiums Work actively to improve basic dispensing fee and community support system premiums due to increase prescriptions from other hospitals and clinics. ■ Basic dispensing fee April 2018 April 2019 change 1 （41pts） 362 stores 409 stores +47 2 （25pts）
Slide 19: Generic drug dispensing system premiums
Generic drug dispensing system premiums The GE average premiums fell from 17.7 to 14.8 points and the figure that excluding 4 main subsidiaries is 12.4 points. The group will keep going for promotion of the use of GE then try to recover to the pre-revision level as soon as possible. ■ Transition of
Slide 20: Growth strategy
Growth strategy © 2018 AIN HOLDINGS INC. All Rights Reserved. 19
Slide 21: Growth Process
Growth Process The business environment and the role of dispensing pharmacy are changing greatly year by year. Our group continue to grow adapting to the changing environment with setting 4 followings as a growth strategy, to improve of Top-line, to strength the function of pharmacies, to recruit an
Slide 22: Growth Strategy
Growth Strategy With a drastic reduction in drug prices and further reduction of points aimed at major dispensing pharmacy chains, the dispensing fee revisions in 2018 gotten severe. We will continue to strengthen pharmacy functions in anticipation of strict system changes and deregulation in the fu
Slide 23: Top-line①
Top-line① We opened 40 stores including M&As and closed 81 stores in FY4/18. We forecast 107 new stores opening by active new store openings and promotion of M&A and 17 stores closing in FY4/19. ■ Total number of stores 1,077 (Dispensing pharmacy:1,029 Cosmetic and drug store:48) ■ Plan FY4/18 FY4/1
Slide 24: Top-line②
Top-line② Due to the failure of successor, shortage of pharmacist, dispensing fee revisions in 2018 and anxiety about business continuity, the number of projects both of private and corporate pharmacy that meet our M&A standards is increasing. We will continue aggressive M&A towards expanding the to
Slide 25: Strengthening the function of pharmacies①
Strengthening the function of pharmacies① （¥ million） 8 ¥7.5 trillion 80. 0% （¥ million） Dispensing pharmacy market Non-hospital dispensing ratio 250,000 25,000 Dispensing pharmacy sales Dispensing pharmacy sales Segment income 234,528 71.7% 7 70. 0% 調 55.8% Segment income 200,000 20,000 6 60. 0% 剤
Slide 26: Strengthening the function of pharmacies②
Strengthening the function of pharmacies② The promotion of the use of generic drug（monthly） （%） GE drugs share (Volume) GE average premiums 77.4 GE drugs share (Volume) 80.0 30.0 GE average premiums 60.0 19.3 18.9 18.3 18.2 20.0 15.0 16.3 12.4 12.9 12.4 14.7 40.0 23.7 14.7 10.0 20.0 6.4 0.0 0.0 4/
Slide 27: Strengthening the function of pharmacies③
Strengthening the function of pharmacies③ In terms of functions such as promotion of GE use, home-based health care and primary care services, which have been demanded by the country and patients, we have accumulated high achievements compared with national pharmacies. we will focus on strengthening
Slide 28: Recruiting of Pharmacists
Recruiting of Pharmacists In April 2018, new 431 employees (pharmacists : 279, general staff : 152) joined our company. We plan to recruit 400-450 pharmacists and 210 general staff in April 2019. ■ The transition of No. of national examination passers and new qualified pharmacists in AIN Group 2010
Slide 29: FY4/19 Plan (Dispensing Pharmacy Business)
FY4/19 Plan（Dispensing Pharmacy Business） ■ Net sales YoY +¥12.1 FY4/18 FY4/19 YoY billion ¥(11.9) change billion results plan change New 100 (%) Impact of （¥ million） store revision Net sales 238,645 239,800 1,155 +0.5 ¥(4.0) billion Store Closing in current and previous year +¥4.9 billion Gross pr
Slide 30: Expansion of AINZ & TULPE①
Expansion of AINZ & TULPE① Existing store in Tokyo metropolitan area contributed significantly to the profitability in FY4/18. Earnings also improve by an increase in the gross margin due to active efforts to develop private brands and an overhaul of procurement activities. ■ Area verify Hokkaido Ho
Slide 31: Expansion of AINZ & TULPE②
Expansion of AINZ & TULPE② The group have been decided to open new store in Ikebukuro, Kinshicho and Shibuya until this 2Q of FY4/19. The group will actively seek to open AINZ & TULPE in the area that can attract number of customers such as metropolitan area. Ikebukuro 2 nd store Kinshicho 2nd store
Slide 32: Expansion of AINZ & TULPE③
Expansion of AINZ & TULPE③ Gross profit has been turn to profitability due to the expansion of net sales, reviews of procurement activities and greater operation efficiency in FY4/18. The group also stated its goal of reaching net sales ¥50 billion, gross profit 42% and operating income 7% in FY4/22
Slide 33: FY4/19 Plan (Cosmetic and Drug Store Business)
FY4/19 Plan（Cosmetic and Drug Store Business） ■ Net sales +¥1.2 billion YoY New 7 ¥(0.7) billion FY4/18 FY4/19 YoY stores change Closed in previous year stores results plan change (%) （¥ million） +¥0.7 billion Full contribution of +¥2.8 opening in previous year Net sales 24,117 27,000 +2,883 +12.0 B
Slide 34: FY4/19 Plan (Consolidated)
FY4/19 Plan（Consolidated） ■ Net sales +¥13.3 billion YoY New 107 FY4/18 FY4/19 YoY stores change ¥(11.9) billion results plan change (%) Impact of revision （¥ million） ¥(4.2) billion +¥5.6 billion Net sales 268,385 272,870 +4,485 +1.7 Full contribution of previous Stores closing in previous year, et
Slide 35: Supplementary Information
Supplementary Information © 2018 AIN HOLDINGS INC. All Rights Reserved. 34
Slide 36: Company Profile
Company Profile Trade name AIN HOLDINGS INC Representative Kiichi Otani, President and Representative Director Established August 1969 Market capitalization ¥265,003 million As of June 7, 2018 Net sales and Net sales: ¥268,385 million Operating income: ¥19,622 million As of April 30, 2018 operating
Slide 37: Comparison to Other Companies
Comparison to Other Companies （%） 8.0 7.0 B company 6.0 AIN HOLDINGS A company Net sales：¥268,385 million 5.0 E company Operating margin C company Operating margin：7.3% Market capitalization： 4.0 D company ¥265,003 million 3.0 2.0 1.0 0.0 0 40,000 80,000 120,000 160,000 200,000 240,000 280,000 （¥ mi
Slide 38: Inquiries and Disclaimer
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
Slide 39: AIN GROUP
AIN GROUP