AIN HOLDINGS INC.

Business Details

Centered on the operation of insurance dispensing pharmacies, this segment also encompasses wholesale sales of generic drugs and medical consulting / recruitment services for physicians and pharmacists. It provides patients with dispensing and medication guidance services based on prescriptions, and pursues the vision of becoming a trusted community-based pharmacy of choice through solid expertise, promoting home healthcare support and multidisciplinary collaboration. Following the addition of the Sakura Pharmacy Group to the group, the total number of pharmacies expanded to 2,137 stores, further strengthening its presence as a nationwide community healthcare infrastructure.

Recent Overview

Integration of the Sakura Pharmacy Group rapidly expanded the total number of pharmacies to 2,137 stores, with both net sales and profit rising substantially

In August 2025, the Sakura Pharmacy Group joined the group, significantly expanding the pharmacy network mainly in densely populated areas such as the Greater Tokyo area, the Kansai region, and the Tokai region. During the fiscal year, the group opened 902 stores including through M&A, while closing 30 stores and transferring 25 stores, bringing the total number of pharmacies to 2,137. Net sales reached ¥556,424 million (up 44.6% year on year), and segment profit reached ¥35,760 million (up 47.2% year on year), reflecting substantial growth in both revenue and profit. This was supported by an increase in prescription unit price driven by high-priced drug prescriptions and steady growth in the number of prescriptions. On the other hand, the goodwill balance surged to ¥156,522 million following the acquisition of the Sakura Pharmacy Group, increasing the financial burden.

Key Products

Growth Drivers

• Productivity improvement and earnings enhancement from progress in PMI (post-merger integration) of the Sakura Pharmacy Group (full-scale contribution expected from the following fiscal year onward)
• Continued rise in prescription unit price due to increased prescriptions for high-priced medicines
• Increase in the number of prescriptions through enhanced primary-pharmacy and pharmacist functions and shorter waiting times
• Improved operational efficiency and enhanced patient services through DX initiatives (official app, AI Medication History, AI Diagnostic Report)
• Continuation of an aggressive new store opening and M&A strategy based on the mid- to long-term vision "Ambitious Goals 2034" (targeting ¥1 trillion in net sales for FY2034 (ending April 2034))
• Capture of new revenue opportunities from the launch of over-the-counter sales of emergency contraceptive pills (at approximately 1,000 stores nationwide)

Risks

• Impairment risk related to goodwill (¥156,522 million) arising from M&A: goodwill increased by ¥112,054 million year on year due to the acquisition of the Sakura Pharmacy Group, substantially expanding the financial burden
• Risk from dispensing fee revisions: reductions in medical and dispensing fees directly affect prescription unit price and profitability
• Pharmacist shortage risk: difficulty in recruiting pharmacists amid the declining birthrate, aging population, and labor shortage affects store operations
• Increase in interest-bearing debt due to M&A expansion: long-term borrowings surged to ¥151,106 million to fund the acquisition of the Sakura Pharmacy Group, increasing financial leverage (debt repayment period of 5.6 years; interest coverage ratio declined to 14.3 times)
• Changes in the regulatory environment: increased costs of responding to regulatory changes such as the certified pharmacy system, refill prescriptions, and electronic prescriptions
• PMI risk related to the Sakura Pharmacy Group: delays in the integration process or unexpected costs could delay earnings improvement