Presentation material FY05 / 2022 (HTML) | Tsuruha Holdings Co., Ltd.

June 21, 2022

The Company's plans, business outlooks and strategies contained in this material are based on the judgment of the Company's management obtained from the information available as of the date of the announcement. It is just a future forecast, due to various risks and uncertainties such as intensifying price competition in the market, fluctuations in economic trends surrounding the business environment, large fluctuations in the market price in the capital market, and various uncertainties other than the above. Please be aware that the actual business results may differ significantly.

Index

◼ FY05/ FY05 / 2022 results overview ◼ FY05/ FY05 / 2023 plan

* The following abbreviations may be used in this document.
Fukutaro = Kusurino Fukutaro TGN = Tsuruha Group Drug & Pharmacy West Japan Lady = Lady Pharmacy
B & D = B & D Eleven = Drug Eleven TGMD = Tsuruha Group Merchandising

FY05 / 2022 Earnings Summary

Financial results highlights

Gross profit margin improved while sales and profits decreased

Results for the fiscal year ending May 2022 * The same period of the previous year includes the results for 11.5 months of Drug Eleven.

Sales of 915.7 billion yen
(down 0.4 % YoY on-year)

Operating income 40.5 billion yen
(down 16.1 % YoY on-year)

Business overview

Sales declined due to the year-on-year decline in existing store sales and customer numbers
0.6 point improvement of gross profit margin due to increase in the number of prescriptions and the expansion of PB products
The impact of soaring utility bills, including labor costs
Expense control is going well

Main Initiatives in FY05 / 2022

Promotion of digital strategy

Acquisition of app members

6.2 million downloads at the end of the period
Building and utilizing a customer database

Tailored to the needs of individual customers
1to1 marketing development started
Efforts to improve store operational efficiency

Shift creation support system
Digitization of cosmetics customer management
Started preparations for introducing in-house payments

Pursuing convenience in real stores

Promotion of line lobing

Fresh food (meat, fruits and vegetables), 100 yen uniform
Responding to new purchasing styles

Delivery service, BOPIS experiment

Promotion of dispensing business strategy

Promotion of new station opening

Reached 30% of dispensing store composition

Sustainability promotion

Identification of important issues (materiality)
Development of environment-friendly PB products

Consolidated business results (compared to the plan)

Compared to the plan(million yen /%)

	plan		achievement
		Composition ratio		Composition ratio	Plan ratio	difference
amount of sales	956,000	100.0	915,700	100.0	95.8	▲40,299
Gross profit	286,500	30.0	271,483	29.6	94.8	▲15,016
SG&A expenses	235,300	24.6	230,914	25.2	98.1	▲4,385
Operating income	51,200	5.4	40,568	4.4	79.2	▲10,631
Ordinary profit	51,367	5.4	40,052	4.4	78.0	▲11,314
Attribution to the shareholders of the parent company Quarterly net income	28,280	3.0	21,388	2.3	75.6	▲6,891

amount of sales

Existing store (13 months old store) YoY
Plan +2.3% → Actual -1.0%
159 new stores

Gross profit

Not achieved due to sales budget difference
Impact of inventory evaluation review of corona-related products (disinfectants, etc.)

Selling, general and administrative expenses

Landing within budget due to control of labor costs, etc.
Increased utility bills

Consolidated business results (year-on-year)

Compared to the previous year * The same period of the previous year includes the results for 11.5 months of Drug Eleven (million yen /%)

	Year-on-year		achievement
	achievement	Composition ratio		Composition ratio	YoY
amount of sales	919,303	100.0	915,700	100.0	99.6
Gross profit	266,721	29.0	271,483	29.6	101.8
SG&A expenses	218,344	23.7	230,914	25.2	105.8
Operating income	48,377	5.4	40.568	4.4	83.9
Ordinary profit	47,708	5.5	40,052	4.4	84.0
Attribution to the shareholders of the parent company Net income	26,318	3.3	21,388	2.3	81.4

　(One million yen / %)

	[Reference] Approximately based on the old standard
		Composition ratio	YoY
amount of sales	942,052	100.0	102.5
Gross profit	278,088	29.5	104.3
SG&A expenses	237,682	25.2	108.9
Operating income	40,405	4.3	83.5
Ordinary profit	40,009	4.2	83.6

Difference due to change in revenue recognition standard (⇒ See next page)

Sales 26.3 billion yen, gross profit 6.6 billion yen, SG & A expenses 6.7 billion yen

[Reference] Impact of changes in revenue recognition standards

Full year(million yen /%)

	FY05 / 2021		Before reclassification (Old standard base)			After rearrangement (Based on new standards)
		Composition ratio		Composition ratio	YoY		Composition ratio
amount of sales	919,303	100.0	942,052	100.0	102.5	915,700	100.0
Gross profit	266,721	29.0	278,088	29.5	104.3	271,483	29.6
SG&A expenses	218,344	23.7	237,682	25.2	108.9	230,914	25.2
Of which, sales promotion expenses	5,948	0.6	10,915	1.2	183.5	4,147	0.5
Operating income	48,377	5.3	40,405	4.3	83.9	40,568	4.4

Impact of recombination

Own points The amount granted is
Change from recording provision for provision to deferring recording of revenue
Other companies' points The amount granted is
Change from expense recording to reduction of transaction price
Digestion purchase Revenue recognition
Change from total to net

▼

(Unit: million yen)

Sales △ 26,352

Own points granted△ 4,904

Other companies' points awarded△ 1,654

Digestion purchase (consignment sales, etc.)△ 19,794

Cost of sales △ 19,747

Digestion purchase (consignment sales, etc.)△ 19,747

SG & A expenses △ 6,768

Own points granted△ 5,114

Other companies' points awarded△ 1,654

Gross profit △ 6,605

Consolidated business results (year-on-year) excluding Drug Eleven

Year-on-year comparison(million yen /%)

	Year-on-year		achievement
	achievement	Composition ratio		Composition ratio	YoY
amount of sales	872,290	100.0	872,040	100.0	100.0
Gross profit	253,424	29.1	258,309	29.6	101.9
SG&A expenses	205,454	23.6	217,576	25.0	105.9
Operating income	47,969	5.5	40,733	4.7	84.9
Ordinary profit	47,454	6.0	40,311	4.6	84.9
Attribution to the shareholders of the parent company Net income	26,745	3.1	22,102	2.5	82.6

　 (One million yen / %)

	Old standard base estimate
		Composition ratio	YoY
amount of sales	897,777	100.0	102.9
Gross profit	264,474	29.5	104.4
SG&A expenses	223,902	24.9	109.0
Operating income	40,573	4.5	84.6
Ordinary profit	40,151	4.5	84.6

Sales at existing stores (13 months old)-1.0 % YoY (4Q-1.6 %)

Consolidated business results (quarterly trend)

Current term(million yen /%)

	the 1st quarter			the 2nd quarter			the 3rd quarter			Fourth quarter
	achievement	Composition ratio	YoY	achievement	Composition ratio	YoY	achievement	Composition ratio	YoY	achievement	Composition ratio	YoY
amount of sales	235,684	100.0	104.9	226,827	100.0	99.1	229,377	100.0	99.5	223,810	100.0	95.1
Gross profit	69,126	29.3	106.2	67,690	29.8	101.7	68,582	29.9	103.3	66,083	29.5	96.2
SG&A expenses	56,237	23.9	112.7	57,870	25.5	107.7	57,241	25.0	104.7	59,565	26.6	99.2
Operating income	12,889	5.5	85.0	9,820	4.3	76.5	11,340	4.9	96.8	6,517	2.9	75.2
Ordinary profit	12,944	5.5	84.4	9,678	4.3	74.4	11,302	4.9	102.7	6,127	2.7	73.4
Attribution to the shareholders of the parent company Net income	7,536	3.2	82.5	5,203	2.3	69.8	6,163	2.7	103.3	2,485	1.1	66.7

Previous term(million yen /%)				Drug Eleven 3 months included			Drug Eleven 3 months included			Eleven 5.5 months included
	the 1st quarter			the 2nd quarter			the 3rd quarter			Fourth quarter
	achievement	Composition ratio	YoY	achievement	Composition ratio	YoY	achievement	Composition ratio	YoY	achievement	Composition ratio	YoY
amount of sales	224,623	100.0	107.6	228,869	100.0	110.2	230,421	100.0	110.2	235,388	100.0	109.3
Gross profit	65,076	29.0	108.8	66,556	29.1	111.3	66,399	28.8	108.7	68,688	29.2	108.1
SG&A expenses	49,913	22.2	105.8	53,720	23.5	110.4	54,688	23.7	113.1	60,021	25.5	109.0
Operating income	15,162	6.8	120.1	12,835	5.6	115.2	11,711	5.1	91.7	8,667	3.7	102.2
Ordinary profit	15,328	6.8	119.1	13,001	5.7	112.4	11,007	4.8	84.9	8,350	3.5	93.9
Attribution to the shareholders of the parent company Net income	9,137	4.1	104.7	7,450	3.3	109.1	5,968	2.6	77.0	3,727	1.6	81.1

[Reference] Consolidated financial results (quarterly trends) Excluding Drug Eleven

Approximate current / old standard base(million yen /%)

	the 1st quarter			the 2nd quarter			Third quarter			Fourth quarter
	achievement	Composition ratio	YoY	achievement	Composition ratio	YoY	achievement	Composition ratio	YoY	achievement	Composition ratio	YoY
amount of sales	229,596	100	102.2	222,482	100	103	225,695	100	103.4	220,004	100	103.1
Gross profit	66,992	29.2	102.9	66,194	29.8	105.1	66,955	29.7	106.4	64,333	29.2	103.1
SG&A expenses	54,144	23.6	108.5	56,183	25.3	111.8	55,869	24.8	109.1	57,706	26.2	106.7
Operating income	12,848	5.6	84.7	10,011	4.5	78.5	11,086	4.9	94.3	6,628	3	79.8
Ordinary profit	12,924	5.6	84.3	9,869	4.4	76.4	11,077	4.9	100.5	6,281	2.9	76.8

Previous term(million yen /%)

	the 1st quarter			the 2nd quarter			the 3rd quarter			Fourth quarter
	achievement	Composition ratio	YoY	achievement	Composition ratio	YoY	achievement	Composition ratio	YoY	achievement	Composition ratio	YoY
amount of sales	224,623	100.0	107.6	215,923	100.0	104.0	218,333	100.0	104.4	213,411	100.0	99.1
Gross profit	65,076	29.0	108.8	62,995	29.2	105.4	62,951	28.8	103.0	62,401	29.2	98.2
SG&A expenses	49,913	22.2	105.8	50,244	23.3	103.3	51,199	23.4	105.9	54,098	25.3	98.2
Operating income	15,162	6.8	120.1	12,751	5.9	114.5	11,753	5.4	92.1	8,303	3.9	97.9
Ordinary profit	15,328	6.8	119.1	12,923	6.0	111.7	11,025	5.0	85.0	8,177	3.8	92.0

SG&A expenses (compared to the previous year)

Consolidated* The same period of the previous year includes the results for 11.5 months of Drug Eleven (million yen /%)

		FY05 / 2021		FY05 / 2022
			YoY		YoY
Labor costs	Amount of money	110,464	109.0	115,617	104.7
Labor costs	Sales ratio	12.0	△0.1	12.6	+0.6
Sales promotion expense	Amount of money	5,948	108.1	4,147	69.7
Sales promotion expense	Sales ratio	0.6	△0.1	0.5	△0.1
Land rent, etc.	Amount of money	48,339	108.3	50,381	104.2
Land rent, etc.	Sales ratio	5.3	0.0	5.5	+0.2
other expenses	Amount of money	53,592	112.3	60,768	113.4
other expenses	Sales ratio	5.8	+0.1	6.6	+0.8
SG&A expenses	Amount of money	218,344	109.6	230,914	105.8
SG&A expenses	Sales ratio	23.8	+0.1	25.2	+1.4

Excluding Drug Eleven(million yen /%)

		FY05 / 2022		FY05 / 2022 (approximate based on old standards)
			YoY		YoY
Labor costs	Amount of money	109,558	104.9	109,558	104.9
Labor costs	Sales ratio	12.6	+0.6	12.2	+0.2
Sales promotion expense	Amount of money	3,693	66.9	10,019	181.4
Sales promotion expense	Sales ratio	0.4	△0.2	1.1	+0.5
Land rent, etc.	Amount of money	47,504	104.6	47,504	104.6
Land rent, etc.	Sales ratio	5.4	+0.2	5.3	+0.1
other expenses	Amount of money	56,819	113.5	56,819	113.5
other expenses	Sales ratio	6.5	+0.8	6.3	+0.6
Selling costs· General and administrative expenses	Amount of money	217,576	105.9	223,902	109.0
Selling costs· General and administrative expenses	Sales ratio	25.0	+1.4	24.9	+1.3

Personnel expenses…Control over the full year, control compared to the YoY
Other expenses ... Utility expenses (Electricity charges) Year-on-year increase of 1.8 billion yen,
Increase in cashless fees and depreciation costs

Achievements by company

Year-to-date *Since the consolidated period for Drug Eleven differs from the previous fiscal year,
Year-on YoY changes are not shown.

		consolidated		Tsuruha		Kusurino Fukutaro		Tsuruha Group Drug & Pharmacy West Japan		Lady drug store		Kyorindo Pharmacy		B & D		Drug Eleven
			YoY		YoY		YoY		YoY		YoY		YoY		YoY		YoY
amount of sales	Amount of money	915,700	99.6	441,280	99.4	71,117	98.4	127,605	101.2	79,599	101.0	117,230	101.8	28,396	95.0	44,033	－
amount of sales	Sales ratio	100.0	－	100.0	－	100.0	－	100.0	－	100.0	－	100.0	－	100.0	－	100.0	－
Gross profit	Amount of money	271,483	101.8	132,789	101.0	23,423	99.0	38,577	104.4	22,768	101.6	29,803	105.9	8,234	98.8	13,547	－
Gross profit	Sales ratio	29.6	+0.6	30.1	+0.5	32.9	+0.1	30.2	+0.9	28.6	+0.2	25.4	+1.0	29.0	+1.1	30.8	－
SG&A expenses	Amount of money	230,914	105.8	112,544	107.2	21,091	100.8	28,384	107.8	18,081	102.6	25,017	107.4	7,384	97.2	13,138	－
SG&A expenses	Sales ratio	25.2	＋1.4	25.5	+1.9	29.7	+0.7	22.2	+1.3	22.7	+0.3	21.3	+1.1	26.0	+0.6	29.8	－
Operating income	Amount of money	40,568	83.9	20,244	76.2	2,332	84.9	10,193	95.8	4,687	98.1	4,785	98.5	850	115.4	408	－
Operating income	Sales ratio	4.4	△0.9	4.6	△1.4	3.3	△0.5	8.0	△0.4	5.9	△0.2	4.1	△0.1	3.0	+0.5	0.9	－
Ordinary profit	Amount of money	40,052	84.0	20,587	77.8	1,814	65.0	10,335	98.2	4,366	94.0	4,634	99.7	949	134.4	334	－
Ordinary profit	Sales ratio	4.4	△0.8	4.7	△1.3	2.6	△1.3	8.1	△0.2	5.5	△0.4	4.0	0.0	3.3	+0.9	0.8	－
Attribution to the shareholders of the parent company Net income	Amount of money	21,388	81.4	13,795	79.6	795	53.6	6,889	97.6	2,691	87.5	3,242	104.9	588	141.6	23	－
	Sales ratio	2.3	△0.6	3.1	△0.8	1.1	△1.0	5.4	△0.2	3.4	△0.5	2.8	+0.1	2.1	+0.7	0.1	－

Results by company (estimate based on old standards)

Full-year cumulative estimate based on old standards *Since the consolidated period for Drug Eleven differs from the previous fiscal year,
Year-on YoY changes are not shown.

		consolidated		Tsuruha		Kusurino Fukutaro		Tsuruha Group Drug & Pharmacy West Japan		Lady drug store		Kyorindo Pharmacy		B & D		Drug Eleven
			YoY		YoY		YoY		YoY		YoY		YoY		YoY		YoY
amount of sales	Amount of money	942,052	102.5	453,062	102.0	72,252	100.0	133,040	105.5	80,900	102.6	122,653	106.5	29,055	97.2	44,544	－
amount of sales	Sales ratio	100.0	－	100.0	－	100.0	－	100.0	－	100.0	－	100.0	－	100.0	－	100.0	－
Gross profit	Amount of money	278,088	104.3	135,782	103.3	24,145	102.0	39,643	107.2	23,420	104.5	30,364	107.9	8,402	100.9	13,884	－
Gross profit	Sales ratio	29.5	+0.5	30.0	+0.4	33.4	+0.6	29.8	+0.5	28.9	+0.5	24,8	+0.4	28.9	+1.0	31.2	－
Selling costs· General and administrative expenses	Amount of money	237,682	108.9	115,575	110.1	21,844	104.4	29,505	112.1	18,761	106.4	25,582	109.9	7,558	99.5	13,478	－
Selling costs· General and administrative expenses	Sales ratio	25.2	+1.5	25.5	+1.9	30.2	+1.2	22.2	+1.3	23.2	+0.8	20.9	+0.8	26.0	+0.6	30.3	－
Operating income	Amount of money	40,405	83.9	20,206	76.1	2,302	83.8	10,139	95.3	4,660	97.5	4,782	98.5	845	114.8	406	－
Operating income	Sales ratio	4.3	△1.0	4.5	△1.5	3.2	△0.6	7.6	△0.8	5.8	△0.3	3.9	△0.3	2.9	+0.4	0.9	－
Ordinary profit	Amount of money	39,889	83.6	20,549	77.7	1,784	60.0	10,281	97.6	4,339	93.4	4,631	99.7	944	133.7	332	－
Ordinary profit	Sales ratio	4.2	△1.3	4.5	△1.5	2.5	△1.4	7.7	△0.6	5.4	△0.5	3.8	△0.2	3.2	+0.8	0.7	－

Year-on-year changes in sales (stores 13 months old) Excluding Drug Eleven

previous fiscal year

Demand for nesting after a state of emergency
Reactionary decrease / increase in reactionary increase in consumption tax increase in the previous term
Reactionary decline in mask demand in the previous term
Reactionary decline in demand for nesting in the previous term
Increased demand due to the third wave
Demand for infection control has subsided, demand for cold medicine has decreased

Current term

Reactionary decline in demand for nesting in the previous term
Slump in seasonal products such as cold remedies

Sales analysis (stores 13 months old) Excluding Drug Eleven

Cumulative number of customers▲ 4.0 % ・ 3Q ▲ 3.8 %

Cumulative product unit price+ 2.0 % / 3Q + 2.4 %

Cumulative customer unit price+ 3.1 % ・ 3Q + 2.3 %

Cumulative purchase points+ 1.0 % ・ 3Q ▲ 0.1 %

● FY05 / 2021

● FY05 / 2022

Store openings / closures / sales status by company

Number of stores

	End of the previous fiscal year	Current term
	End of the previous fiscal year	Opening	closed	Net increase	End of the quarter
Tsuruha	1,305	100	23	+77	1,382
Kusurino Fukutaro	233	5	6	△1	232
TGN	298	26	7	+19	317
Lady drug store	228	11	4	+7	235
Kyorindo Pharmacy	87	5	-	+5	92
B & D	69	5	1	+4	73
Drug Eleven	199	7	16	△9	190
TGMD (EC Headquarters)	1	-	-	0	1
Domestic total	2,420	159	57	+102	2,522

Existing store sales

	Existing store sales YoY
	previous fiscal year	Current term
Tsuruha	99.8	97.6
Kusurino Fukutaro	98.1	99.4
TGN	105.8	100.3
Lady drug store	105.2	101.2
Kyorindo Pharmacy	101.2	102.3
B & D	99.4	94.7
Drug Eleven	* Treated as a new store during this term
Domestic total	101.1	99.0

94 new dispensing stores
Renovation of existing stores 241 stores

Store openings / closures / sales status by region

Number of stores

	End of the previous fiscal year	Current term
		Opening	closed	Net increase	End of the quarter
Hokkaido	414	16	8	+8	422
Tohoku	533	40	3	+37	570
Kanto Koshinetsu	493	37	10	+27	520
Chubu / Kansai	237	18	8	10	247
China	315	20	9	+11	326
Shikoku	212	14	6	+8	220
Kyushu / Okinawa	216	14	13	+1	217
Domestic total	2,420	159	57	+102	2,522
(5 other FC stores)
Overseas (Thailand)	22	1	6	△5	17

Existing store sales

	Existing store sales YoY
	previous fiscal year	Current term
Hokkaido	100.5	98.4
Tohoku	101.4	97.2
Kanto Koshinetsu	99.6	98.0
Chubu / Kansai	97.7	100.6
China	106.0	100.2
Shikoku	103.9	100.9
Kyushu	108.7	103.6
total	101.1	99.0

* Drug Eleven is not included in existing stores

Results by product group (cumulative for the current period)

* In the same period of the previous year, the results for 11.5 months of Drug Eleven are included (million yen /%).

			amount of sales			Earnings Gross profit margin
				YoY	Composition ratio		YoY increase / decrease
Product	Pharmaceuticals		201,259	103.9	22.0	42.2	△0.1
		Dispensing	102,871	110.6	11.2	38.8	△0.2
		OTC	98,387	97.7	10.7	45.7	+0.5
	Cosmetics		130,328	97.7	14.2	32.4	△0.9
	Daily goods		249,129	95.7	27.2	28.0	+1.1
	Food		220,346	103.5	24.1	15.9	+1.5
	others		110,526	95.9	12.1	33.7	+0.9
	Product total		911,590	99.6	99.6	29.5	+0.6
total			915,700	99.6	100.0	29.6	+0.6

Results by product group (cumulative for the current period) Excluding Drug Eleven

Excluding eleven ・ Approximately based on the old standard (million yen /%)

			amount of sales			Gross profit margin
				YoY	Composition ratio		YoY increase / decrease
Product	Pharmaceuticals		194,326	105.3	21.6	42.3	△0.1
		Dispensing	100,614	110.8	11.2	38.6	△0.3
		OTC	93,712	99.9	10.4	46.3	+0.6
	Cosmetics		124,227	100.6	13.8	34.5	+1.0
	Daily goods		247,264	101.0	27.5	27.7	+0.3
	Food		224,804	107.1	25.0	14.8	+0.4
	others		103,025	97.5	11.5	34.1	+1.5
	Product total		893,649	102.9	99.6	29.3	+0.4
total			897,580	102.9	100.0	29.4	+0.4

Pharmaceuticals

Good performance throughout the year of dispensing
Increased demand for antipyretic analgesics

Cosmetics

Sales gradually recover mainly on general cosmetics

Daily goods

Corona product inventory valuation review
Temporary decline in gross margin

Breakdown of product group "Other"

	Sales * POS base
		YoY	Total for products Composition ratio
healthy food	30,599	101.8	3.4
Medical supplies / long-term care	52,073	94.8	5.8
Childcare products	19,524	96.8	2.2

Dispensing department results

Consolidated* The same period of the previous year includes the results for 11.5 months of Drug Eleven(million yen /%)

	Cumulative period			This quarter
	Year-on-year Actual results	achievement	YoY	Year-on-year Actual results	achievement	YoY
Dispensing fee (million yen)	93,029	102,871	110.6	24,734	26,177	105.8
Gross profit margin (%)	39.0	38.8	△0.2	38.4	38.3	△0.1
Number of prescriptions (thousands)	8,650	9,575	110.7	2,299	2,402	104.5
Unit price (yen)	10,754	10,744	99.9	10,757	10,896	101.3

Excluding Drug Eleven

	Cumulative period			This quarter
	Year-on-year Actual results	achievement	YoY	Year-on-year Actual results	achievement	YoY
Dispensing fee (million yen)	90,788	100,614	110.8	24,151	25,630	106.1
Gross profit margin (%)	38.9	38.6	△0.3	38.2	38.2	0.0
Number of prescriptions (thousands)	8,361	9,276	110.9	2,223	2,330	104.8
Unit price (yen)	10,858	10,846	99.9	10,861	11,000	101.3

Number of dispensing stores by company

	End of the previous fiscal year	End of the quarter	(breakdown)
			Annex	Specialty
Tsuruha	310	343	303	40
Medicine Fukutaro	104	121	62	59
TGN	103	113	90	23
Lady drug store	55	59	34	25
Kyorindo Pharmacy	67	73	60	13
B & D	24	30	23	7
drag Eleven	20	23	13	10
Domestic total	683	762	585	177

Reaction to the previous year's restraint of consultation and
Due to the increase in the number of pharmacies Increased number of prescriptions

PB product performance (cumulative for the full year)

Excluding full-year cumulative Drug Eleven (million yen /%)

	Sales (million yen)			Sale composition ratio(%) * Product sales excluding dispensing		Gross profit margin (%)
	Year-on-year	achievement	YoY	achievement	YoY increase / decrease	achievement	YoY increase / decrease
Kurashi-Rhythm series	24,484	37,068	151.4	4.7	+1.5	47.1	+0.7
M's One Medis One	16,933	8,102	47.8	1.0	△1.2	33.4	△5.4
subtotal	41,417	45,170	109.1	5.7	+0.4	44.7	+1.4
Exclusive products Company limited product	25,082	27,477	109.5	3.5	+0.3	39.6	△2.7
total	66,499	72,648	109.2	9.2	+0.6	42.8	△0.1

Including eleven total		75,448		9.1		43.2

　(One million yen / %)

	Number of SKUs
	Kurashi-Rhythm series	M's One Medis One	Exclusive products Company limited product	total
Pharmaceuticals	130	12	578	720
Cosmetics	82	10	175	267
Daily necessities	350	38	346	734
Food	21	92	615	728
health Food	72	0	138	210
medical care Supplies	227	34	94	355
Childcare Supplies	8	0	10	18
Total	890	186	1,956	3,032

Kurashi-Rhythm Series Term End 890 SKU　
Increased by 150 SKU mainly for daily necessities and healthcare
Total PB sales composition ratio 9.1%　
* 9% level since the fiscal year ended May 2016

Plan FY05 / 2023

Full-year plan FY05 / 2023

Full year (million yen /%)

	FY05/2022		Plan for FY05/2023
	achievement	Composition ratio	Business forecast	Composition ratio	YoY
amount of sales	915,700	100.0	968,800	100.0	105.8
Gross profit	271,483	29.6	290,600	30.0	107.0
Selling costs· General and administrative expenses	230,915	25.2	247,900	25.6	107.4
Operating income	40,567	4.4	42,700	4.4	105.3
Ordinary profit	40,052	4.4	42,571	4.4	106.3
To the shareholders of the parent company Attribution Net income	21,388	2.3	22,640	2.3	105.9

First half (million yen /%)

	First half of FY05/2022		First half plan for FY05/2023
	achievement	Composition ratio	Business forecast	Composition ratio	YoY
amount of sales	462,512	100.0	481,700	100.0	104.1
Gross profit	136,817	29.6	144,200	29.9	105.4
Selling costs· General and administrative expenses	114,107	24.7	122,300	25.4	107.2
Operating income	22,709	4.9	21,900	4.5	96.4
Ordinary profit	22,622	4.9	21,949	4.6	97.0
Attribution to the shareholders of the parent company Net income	12,739	2.8	12,600	2.6	98.9

Second half

	Second half of FY05/2022		Second half plan for FY05/2023
	achievement	Composition ratio	Business forecast	Composition ratio	YoY
amount of sales	453,187	100.0	487,100	100.0	107.5
Gross profit	134,665	29.7	146,400	30.1	108.7
Selling costs· General and administrative expenses	116,807	25.8	125,600	25.8	107.5
Operating income	17,857	3.9	20,800	4.3	116.5
Ordinary profit	17,429	3.8	20,622	4.2	118.3
Attribution to the shareholders of the parent company Net income	8,648	1.9	10,040	2.1	116.1

Outlook for store openings and closings in the FY05 / 2023

By region

	2022 End of May	FY05 / 2023
	2022 End of May	Opening	closed	Net increase	Number of stores at the end of the period
Hokkaido	422	17	14	+3	425
Tohoku	570	37	15	+22	592
Kanto Koshinetsu	520	26	12	+14	534
Chubu / Kansai	247	15	5	+10	257
China	326	24	3	+21	347
Shikoku	220	11	4	+7	227
Kyushu / Okinawa	217	21	17	+4	221
Domestic total	2,522	151	70	+81	2,603

By company

	2022 End of May	FY05 / 2023
	2022 End of May	Opening	closed	Net increase	Number of stores at the end of the period
Tsuruha	1,382	75	40	+35	1,417
Kusurino Fukutaro	232	9	4	+5	237
TGN	317	25	3	+22	339
Lady drug store	235	15	4	+11	246
Kyorindo Pharmacy	92	5	1	+4	96
B & D	73	5	1	+4	77
Drug Eleven	190	17	17	0	190
TGMD (EC Headquarters)	1	-	-	0	1
Domestic total	2,522	151	70	+81	2,603