Ain Holdings Inc. · TSE:9627
Ain — Q2 FY4/19 Earnings Presentation
34 slides from Ain's earnings presentation, December 2018
Slide 1: FY4/19 2Q IR Presentation
FY4/19 2Q IR PRESENTATION December 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 decreased 0.4% year on year to ¥131,781 million, operating income declined 19.6% to ¥6,731 million, ordinary income dropped 19.0% to ¥7,018 million, and profit attributable to owners of parent decreased 17.6% to ¥3,639 million. FY4/18 2Q FY4/19 2Q FY4/19 2Q YoY YoY Vs plan
Slide 4: Dispensing Pharmacy Business (Consolidated)
Dispensing Pharmacy Business (Consolidated) Although the group opened 78 new dispensing pharmacies during the first six months, net sales decreased 1.4 % year on year and 0.2% against the plan due to the lagging of timing of new store openings. Segment income dropped 9.8% against the plan due to dis
Slide 5: Cosmetic and Drug Store Business (Consolidated)
Cosmetic and Drug Store Business (Consolidated) Although the net sales of existing stores has showing significant growth, net sales increased 8.5 % year on year and decreased 2.0% against the plan due to the series of natural disaster. Segment income increasing 238.7% year on year and 21.1% against
Slide 6: Consolidated B/S
Consolidated B/S Net cash was ¥39,624 million and shareholders’ equity ratio became 53.4%. We are maintaining a sound financial structure. (¥ million) (¥ million) End-FY4/18 End-FY4/19 2Q Assets Liabilities Assets Liabilities Current assets 69,950 Current assets 72,397 94,557 Current liabilities 91,
Slide 7: Assets
Assets The balance of total assets increased ¥1,184 million from the end of the previous fiscal year due to the new store openings and M&A. (¥ million) End-FY4/18 2Q End-FY4/18 End-FY4/19 2Q Change Cash on hand and in banks 57,059 63,779 57,337 (6,442) M&A Notes and accounts receivable 10,250 10,466
Slide 8: Liabilities and Net Assets
Liabilities and Net Assets The balance of liabilities decreased ¥618 million from the end of the previous fiscal year due to the repayment of debts etc. (¥ million) End-FY4/18 2Q End-FY4/18 End-FY4/19 2Q Change Accounts payable 40,326 38,728 42,131 +3,403 Short-term debt 7,457 6,717 8,143 +1,426 Lea
Slide 9: Consolidated C/F
Consolidated C/F The change of Net cash used in investing activities became ¥5,860 million due to the store opening including M&A, etc. (¥ million) FY4/18 2Q FY4/19 2Q Change Net cash provided by operating activities 6,886 4,402 (2,484) Profit before income taxes 8,104 6,668 (1,436) Depreciation and
Slide 10: Business Value Analysis
Business Value Analysis FY4/18 2Q FY4/18 FY4/19 2Q Change Shareholders’ equity ratio (%) 50.3 52.7 53.4 +3.1 Market value equity ratio (%) 152.2 141.0 169.7 +17.5 PER (times) 28.72 23.54 43.02 +14.3 EPS (¥) 134.91 310.08 102.73 (32.18) PBR (times) 3.02 2.67 3.18 +0.16 BPS (¥) 2,560.59 2,729.44 2,780
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: 2Q Review / Revision of 2018 Growth Strategy
2Q Review Revision of 2018 Growth Strategy © 2018 AIN HOLDINGS INC. All Rights Reserved. 11
Slide 13: 2Q Review
2Q Review © 2018 AIN HOLDINGS INC. All Rights Reserved. 12
Slide 14: Review① (Vs FY4/18 2Q Results)
Review①（Vs FY4/18 2Q Results） ■ Net sales FY4/18 2Q FY4/19 2Q YoY YoY +¥3.0 results results change change (%) billion New stores ¥(5.0) (¥ million) billion Existing stores, Impact of revision Net sales 132,342 131,781 (561) (0.4) +¥3.6 billion Full contribution of store Gross profit that opened in p
Slide 15: Review② (Vs plan)
Review②（Vs plan） ■ Net sales +¥0.4 billion FY4/19 2Q FY4/19 2Q Vs plan Vs plan Increase of plan results (%) average (¥ million) prescription price ¥(0.9) of existing stores billion FY4/19 2Q New store results Net sales 132,350 131,781 (569) (0.4) FY4/19 2Q openings lag behind plan schedule Gross pro
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 25 pts Over 4,000 times & 70% or Over 2,000 times & Over 85% or Over 4,000 times 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 ■ Basic dispensing fee To increase basic dispensing fee 1 by promote primary care services and working on receive prescriptions not only from hospital near pharmacy but also from other hospitals and facilities. 1（41pts） 2（25pts） 3-Ⅱ（15pts） S（1
Slide 19: Generic drug dispensing system premiums
Generic drug dispensing system premiums Although GE average premiums dropped 2.9 points to 14.8 points after the dispensing fee revisions, the group have recovered to 16.7 points in October 2018. Furthermore, the group revise up the target from 17.0 to 17.9 points due to promote wider use of generic
Slide 20: Growth strategy
Growth strategy © 2018 AIN HOLDINGS INC. All Rights Reserved. 19
Slide 21: 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. The group continues to strengthen pharmacy functions in anticipation of strict system changes and deregulation in the
Slide 22: Top-line①
Top-line① The group achieved the plan due to KOM MEDICAL, which mainly in Niigata, became subsidiaries of the group during FY4/19 2Q. We forecast the total number of store opening in end-FY4/19 will surpass the plan. ■ Total number of stores 1,133 (Dispensing pharmacy:1,081 Cosmetic and drug store:5
Slide 23: 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. The group continues aggressive M&A towards expanding the
Slide 24: Strengthening the function of pharmacies
Strengthening the function of pharmacies Pharmacy’s vision for patients (by the Ministry of Health, Labor and Welfare on October 23th, 2015) Healthcare support pharmacies Function of advanced Function of healthcare support pharmaceutical management Contribution for prevention of patients’ deceas
Slide 25: Strengthening the function of pharmacies
Strengthening the function of pharmacies The group continues to strengthen the function of pharmacies which are based on “pharmacy’s vision for patients“. In addition, in order to further enhance the functions, location that near hospital or same premises as hospital would likely be the most favorab
Slide 26: Recruiting of Pharmacists
Recruiting of Pharmacists In April 2018, new 431 employees (pharmacists : 279, general staff : 152) joined our company. The number of prospective new employees in April 2019 at this time is 566 (pharmacists :344, general staff:222). ■ The transition of No. of national examination passers and new qua
Slide 27: Expansion of AINZ & TULPE①
Expansion of AINZ & TULPE① Year FY 4/00 FY 4/02 FY 4/04 FY 4/06 FY 4/08 FY 4/10 FY 4/12 FY 4/14 FY 4/16 FY 4/18 FY 4/20 FY 4/22 Open department Renewal of Complex facility First ainz & tulpe store SAPPORO CHIKAGAI Expand Flagship store in Open store Nationwide metropolitan area Strategy inside the s
Slide 28: Expansion of AINZ & TULPE②
Expansion of AINZ & TULPE② Despite the impacts of the typhoons and the earthquake in Hokkaido, net sales are increasing solidly because of getting more awareness in the metropolitan area. Gross margin also improve due to an overhaul of procurement activities and greater operation efficiency. ■ Area
Slide 29: 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 30: Supplementary Information
Supplementary Information © 2018 AIN HOLDINGS INC. All Rights Reserved. 29
Slide 31: Company Profile
Company Profile Trade name AIN HOLDINGS INC Representative Kiichi Otani, President and Representative Director Established August 1969 Market capitalization ¥283,426 million As of Dec 6, 2018 Net sales and Net sales: ¥268,385 million Operating income: ¥19,622 million As of FY4/18 operating income Di
Slide 32: Comparison to Other Companies
Comparison to Other Companies （%） 8.0 7.0 B company 6.0 C company AIN HOLDINGS Net sales：¥268,385 million Operating margin 5.0 E company A company Operating margin：7.3% Market capitalization： 4.0 D company ¥283,426 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 33: 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
Slide 34: AIN GROUP
AIN GROUP