Ain Holdings Inc. · TSE:9627
Ain — Ain Pharmaciez — Q2 FY4/12 Earnings Presentation
32 slides from Ain's earnings presentation, Dec 8, 2011
Slide 1: FY4/12 2Q Results Briefing
FY4/12 2Q Results Briefing December 8, 2011
Slide 2: Results Overview
Results Overview －1－ Copy right 2011 AIN PHARMACIEZ. All rights reserved.
Slide 3: Consolidated P/L
Consolidated P/L Net sales in 1-2Q increased 11.3% YoY and exceeded plan by 1.2%, due to a strong performance by the dispensing pharmacy business. Ordinary income rose 40.4% YoY and exceeded plan by 21.5%, reflecting active efforts to promote generic drugs and efficiency gains in store operations in
Slide 4: Dispensing Pharmacy Business (Consolidated)
Dispensing Pharmacy Business (Consolidated) Net sales in the dispensing pharmacy business increased 12.9% YoY and exceeded plan by 1.5%, reflecting strong same-store sales and contributions from new stores and M&A deals. Margins also rose on improved efficiency in store operations and an increase in
Slide 5: Drug and Cosmetic Store Business (Consolidated)
Drug and Cosmetic Store Business (Consolidated) Although same-store sales in the drug and cosmetic store business declined YoY, net sales were steady YoY owing to a contribution from new stores opened in FY4/11 and in FY4/12 1-2Q. The business also moved into profit, reporting segment income of ¥52
Slide 6: Consolidated B/S
Consolidated B/S Compared with end-FY4/11, debt was roughly unchanged but cash on hand and in banks increased, resulting in net cash of ¥4,918 million. (¥ million) (¥ million) End-FY4/11 End-FY4/12 2Q Assets Liabilities Assets Liabilities Current assets 38,032 Current liabilities 37,616 Current asse
Slide 7: Assets
Assets Capital expenditures during the period totaled ¥2,554 million, reflecting an aggressive store opening and M&As, however cash on hand and in banks rose ¥2,918 million from end-FY4/11 due to an increase in cash provided by operating activities. (¥ million) End-FY4/11 End-FY4/12 End-FY4/11 2Q En
Slide 8: Liabilities and Net Assets
Liabilities and Net Assets Accounts payable increased ¥2,128 million due to an increase in the number of stores, reflecting new store openings and expansion through M&A. (¥ million) End-FY4/11 2Q End-FY4/11 End-FY4/12 2Q Change Accounts payable 21,036 19,706 21,834 2,128 Increase in purchasing due t
Slide 9: Consolidated C/F
Consolidated C/F Operating cash flow increased, mainly reflecting a rise in income before income taxes and minority interests, and depreciation and amortization (including goodwill). As of end-FY4/12 2Q, cash and cash equivalents stood at ¥18,293 million, providing further scope for investment. (¥ m
Slide 10: Business Value Analysis
Business Value Analysis Earnings are firm, supporting an increase in corporate value. End-FY4/11 End-FY4/11 2Q End-FY4/12 2Q Change (Reference) Shareholders’ equity ratio (%) 37.7 38.0 0.3 38.3 Market value equity ratio （%） 58.7 62.8 4.1 64.5 PER (times) 22.99 21.67 -1.32 12.18 EPS (¥) 115.47 148.34
Slide 11: FY4/12 Plan (Consolidated)
FY4/12 Plan (Consolidated) We forecast FY4/12 net sales will rise 10.5% YoY due to active store opening and expansion through M&A. We project ordinary income will increase 15.7% YoY on ongoing efficiency gains in store operations and cost controls. (¥ million) FY4/11 FY4/12 YoY change results Change
Slide 12: Operating Outlook
Operating Outlook Dispensing pharmacy business Drug and cosmetic store business Transcend2000 － 11 － Copy right 2011 AIN PHARMACIEZ. All rights reserved.
Slide 13: Topics of May through November 2011
Topics of May through November 2011 Developments in FY4/12 1–2Q 30 FY4/11 results announced May Net sales: ¥129,387 million (+3.1% YoY), ordinary income: ¥8,210 million (+29.0% YoY) 9 FY4/11 results briefing Jun. 14 Energy saving project launched 28 General Meeting of Shareholders – dividend of ¥45
Slide 14: Analysis of 1-2Q Results
Analysis of 1-2Q Results Net sales exceeded plan by 1.2%, reflecting new store openings and expansion through M&A in line with plan, as well as sustained growth in the average prescription price. SG&A expenses were 3.1% lower than plan owing to overhead cost reductions and more efficient use of pers
Slide 15: Dispensing Pharmacy Business Performance
Dispensing Pharmacy Business Performance 1996 1997 1998 2000 2002 2004 2006 2008 2010 Revision ratio on +1.3% +1.15% +0.7% +0.8% -1.3% ±0% -0.6% +0.17% +0.52% Dispensing fees (Including special drug price reduction Revision ratio on -6.8% -4.4% -9.7% -7.0% -6.3% -4.2% -6.7% -5.2% -6.5% measures) Dru
Slide 16: Uptake of Generic Drugs
Uptake of Generic Drugs The government is aiming to boost the usage rate on a volume base of generic drugs to over 30% by March 2013. Generic drug usage volume has increased rapidly since the government sharply increased premiums for generic drug dispensing systems in April 2010 dispensing fee revis
Slide 17: Promoting Generic Drugs
Promoting Generic Drugs As of end-October 2011, generic drugs accounted for 28.8% of total drug prescription volume at our pharmacies due to promotion efforts and stepped up training for pharmacists. We expect government policy to lead to an increase in prescriptions with a generic option and we pla
Slide 18: Net Sales at WSS
Net Sales at WSS In 1-2Q, ordinary income at WSS rose 43.9% YoY and exceeded plan by 6.2%, however net sales fell short of plan. We plan to promote wider use of generic drugs within the Group and expand sales to external customers by continuing to increase the number of sales items on promotion. (¥
Slide 19: Developing and Introducing Automated Systems
Developing and Introducing Automated Systems We work closely with manufacturers in the development of automated equipment to improve safety and accuracy and develop operating methods during the testing phase. Automated drug dispensing system Automated prescription checking system Automated tablet Au
Slide 20: Store Network
Store Network We opened 24 stores in 1-2Q, exceeding our target. We are making steady progress toward our goal of 50 new stores in FY4/12. ■ Total number of stores ・・・・ Hokkaido 95 (Dispensing pharmacy: 462 515 Drug and cosmetic store: 53) ・・・・・・・・・・ ・・・・・・・・・ ■ Store opening plans ・ ・・・・・・・・ ・・・・・・
Slide 21: Medical treatment fee revisions (1)
Medical treatment fee revisions (1) The Ministry of Health, Labour and Welfare's Social Security Council has approved the basic policy for medical treatment fee revisions in April 2012. As part of efforts to promote generic drugs, the Central Social Insurance Medical Council (CSIMC) is looking at ra
Slide 22: Medical treatment fee revisions (2)
Medical treatment fee revisions (2) In an effort to reduce waste in home healthcare, where unused prescribed drugs are estimated to cost around ¥40bn, pharmacists will be encouraged to actively participate in home healthcare by offering drug management and guidance for patients at home. The CSIMC is
Slide 23: Developing Medical Malls
Developing Medical Malls As part of efforts to expand the business through new store openings, we have started developing medical malls with a focus on 122 potential development proposals identified nationwide. ■ Development project business approach ■ Hybrid facility development (large-scale dispen
Slide 24: Case study (1): Nagamachi Project, Sendai
Case study (1): Nagamachi Project, Sendai We are investing in a new medical mall close to Sendai City Hospital, which is being relocated. The mall is due to be completed and opened in April 2012. Four clinics have already agreed to open sites in the mall and negotiations are underway with a screenin
Slide 25: Case study (2): Shibetsu Project, Hokkaido
Case study (2): Shibetsu Project, Hokkaido We are planning to convert an existing dispensing pharmacy into a medical building. We received a request from Shibetsu City to create a facility providing medical services not available at the city hospital, thereby helping to create more comprehensive med
Slide 26: Case study (3): Sapporo Kita Building Project
Case study (3): Sapporo Kita Building Project We are investing in a new clinic zone in the Sapporo Kita Building, due to be completed in 2012. We have been involved in the project from the beginning and the first floor has already been earmarked for use as our dispensing pharmacy. Medical mall 2F (M
Slide 27: Drug and cosmetic store business
Drug and cosmetic store business Gross profits increased owing to efforts to boost sales of OTC drugs with high gross margins. In addition, segment income improved ¥160 million YoY owing to tighter control of store operating costs, which included more efficient use of personnel and cuts to advertisi
Slide 28: New stores (1)
New stores (1) We opened two new stores in 2Q. Both are generating strong sales. The Sannomiya Store was relocated to the Clefy Sannomiya retail building, which attracts many shoppers from our target demographic. The Miyanosawa Station Store is connected directly to the station and stocks a wide ran
Slide 29: New stores (2)
New stores (2) We have already opened two more stores in 3-4Q. Sales at these stores are in line with plan. The Sapporo Paseo store is located in a retail area that links directly with Sapporo Station. Many neighboring tenants attract business from our target demographic. The Ario Sapporo Store is l
Slide 30: Progress with Transcend 2000 (T-2000)
Progress with Transcend 2000 (T-2000) Net sales and ordinary income in FY4/12 1-2Q were both ahead of plan on the back of new store openings and strong sales at existing stores. We continue to work towards our net sales and ordinary income targets for FY4/14, the final year of the medium-term plan.
Slide 31: Initiatives to Achieve T-2000 Targets
Initiatives to Achieve T-2000 Targets We are targeting net sales of ¥200 billion and ordinary income of ¥13.5 billion in FY4/14 by opening new stores, using M&A, and increasing the efficiency of store operations. ■ Initiatives in the dispensing pharmacy business New store openings exceeded our targe
Slide 32: AIN PHARMACIEZ INC. Corporate Planning Office
For more information about this presentation, please use the contact details below AIN PHARMACIEZ INC. Corporate Planning Office TEL011-783-5681 FAX011-783-0224 http://www.ainj.co.jp/ Transcription, copying or distribution of this material to third parties is forbidden without the permission of Ain