Summary Report of Consolidated Financial Results
For the Second Quarter Ended December 31, 2021

(All financial information has been prepared in accordance with accounting principles generally accepted in Japan.)
Pan Pacific International Holdings Corporation
Securities Code No.: 7532
Shares Listed:Tokyo Stock Exchange
Address:
2-19-10 Aobadai, Meguro-ku, Tokyo
Representative:
Naoki Yoshida, President and CEO
Contact:
Keita Shimizu, Director and Managing Executive Officer, CFO (Phone:+81-3-5725-7588)
URL:
https://ppih.co.jp/(Amounts in million yen are rounded off to the nearest million)
1. Overview of Business Results and Financial Position for the second quarter of fiscal 2022 (From July 1, 2021 toDecember 31, 2021)(1) Results of Business Operations(Millions of yen, except per-share data)
Profit Attributable
Change Operating Change Ordinary Change
ChangeNet Sales
to Owners of(%)(%)
Income(%)
Income(%)
ParentSix Months Ended
917,680
7.6
43,644(11.5)
44,523(7.6)
30,148(7.6)
December 31, 2021
Six Months Ended
852,861(0.7)
49,32911.3
48,192
7.7
32,63815.1
December 31, 2020
(Note) Comprehensive income: 29,854 million yen [△9.7%] (FY 2022.6 2Q), 33,070 million yen [20.5%] (FY 2021.6 2Q)
Net Income
Per Share(Yen)Net Income
Per Share-fully
diluted (Yen)Six Months Ended
49.40
49.28
December 31, 2021
Six Months Ended
51.48
51.34
December 31, 2020
(Note) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the first quarter under review, and each figure for thesecond quarter of the fiscal year ending June 30, 2022, is the figure after applying the accounting standard andrelevant ASBJ regulations.
(2) Financial Position(Millions of yen, except per-share data)
Total Assets

Ratio of Shareholders’ Equity
to Total Assets (%)

Net assets

As of December 31,
1,420,789
379,427
25.3
2021
June 30, 2021
1,370,115
438,628
30.5(Reference) Equity: 358,840 million yen (as of December 31, 2021), 418,524 million yen (as of June 30, 2021)(Note) During the consolidated accounting period for the second quarter of the fiscal year ending June 2022, provisionalaccounting treatment for business combinations has been finalized. The figures for the fiscal year ended June 2021 reflect
the content of the provisional accounting treatment.
2. Dividends
Three Months Endof September 30
Year Ended June 30,
2021
Year Ending June 30,
2022
Year Ending June 30,
2022 (Forecast)

Annual Dividends per share
Six Months End
Nine Months Endof December 31
of March 31

－

3.00

－

3.00

Year Endof June 30

Total－

13.00

16.00

－

13.50

16.50

(Note) Revision to the dividend forecast in the second quarter of fiscal 2022: None1

3. Consolidated Business Forecast：For the year ending June 30, 2022 (From July 1, 2021 to June 30, 2022)(Millions of yen, except per-share data)
Net SalesChange(%)

Operating
IncomeChange(%)

Ordinary
IncomeChange(%)

ProfitAttributableto Owners ofParentChange(%)

Net IncomeperShare(Yen)Year Ending
1,870,000
9.4
85,000
4.6
83,0001.957,600
7.2
June 30, 2022(Note) 1. Revision to the business forecast in the second quarter of fiscal 2022: None
2. The year-on-year percentage change for the whole financial year has been retroactively revised due to the95.46

finalization of provisional accounting treatment for business combinations. Therefore, the year-on-year
percentage change is shown in comparison with the figures for the previous term after retroactive adjustment.
4. Others(1) Significant changes in the scope of consolidation: None
Newly consolidated: － , Excluded:－(2) Simplified accounting methods and special accounting methods for preparation of the quarterly consolidated
financial statements: None
(3) Changes in accounting policies concerning preparation of quarterly consolidated financial statements① Changes in line with revision to accounting standards: Yes② Other changes: None
③ Changes in accounting estimates: None
④ Restatement: None
(4) Number of outstanding shares (Common share)① Number of outstanding shares (Treasury share included)
December 31, 2021
634,321,440 shares
June 30, 2021
634,239,440 shares② Number of treasury share
December 31, 2021
38,073,224 shares
June 30, 2021
18,924 shares③ Average number of outstanding shares during the period
December 31, 2021
610,276,423 shares
December 31, 2020
634,012,803 shares※This financial summary is not subject to audit conducted by certified public accountants or an audit corporation.
※Explanation regarding the appropriate use of forecasts of business results
The financial forecasts of business results are based on judgments and estimates that have been made using
currently available information. By nature, such financial forecasts are subject to uncertainties and risks. Therefore,
actual results might be significantly different from the aforementioned forecasts for a variety of reasons, includingchanges in economic environments related to our business, market trends and foreign currency exchange rates.
※The Company plans to hold a financial result briefing for security analysts and institutional investors on February 10,2022. Presentation materials for the briefing will be available on the Company’s website.

2Consolidated Quarterly Balance Sheets(Millions of yen)
As of June 30,

As of December 31,

2021

2021

AmountAmountAssetsCurrent assets
Cash and deposits¥157,522¥162,302

Notes and accounts receivables-trade

21,07430,249Accounts receivables - installment

65,49180,978Operating loans

7,658

7,703

203,416

218,317

7,671

8,533

Deposits paid

4,36416,540

Other

29,48818,993

Allowance for doubtful accounts(1,276)(1,540)495,406

542,073

261,481263,548

Merchandise and finished goods
Prepaid expenses

Total current assets

Non-current assets
Property, plant and equipment
Buildings and structures, net
Tools, furniture and fixtures, net

32,84834,654Lands

317,402317,414

Right of use assets, net

22,672

22,906

Other, net

9,347

13,807643,750

652,328

Goodwill

55,411

55,225

Other

23,25523,628

Total intangible assets

78,66778,853

Investment securities

29,082

29,560Long-term loan receivables

1,192

1,152

Long-term prepaid expenses

5,140

5,272

Retirement benefit assets

16,756

16,895

Deferred tax assets

24,55820,089Lease and guarantee deposits

73,88273,054

Total property, plant and equipment
Intangible assets

Investments and other assets

Other

3,802

3,660

Allowance for doubtful accounts(2,120)(2,146)

152,292

147,535

874,709878,716¥1,370,115¥1,420,789

Total investments and other assets
Total non-current assets

Total assets3

(Millions of yen)
As of June 30,

As of December 31,2021

2021

AmountAmountLiabilities
Current liabilities
Notes and accounts payables - trade¥149,984¥205,956

Short-term loan payables

1,500

690

Current portion of long-term loan payables

33,61331,597

Current portion of bonds

22,566

21,514

191－

46,50855,902

Payables under fluidity lease receivables
Accounts payables - other
Lease obligations

1,380

1,496

Accrued expenses

25,55021,169Deposits received

28,00020,583

Income taxes payables

11,299

9,930

Provision for point card certificates

5,747

2,406

－

11,273Contract liabilities
Other

27,211

16,186

Total current liabilities

353,550

398,702

Bond payables

203,976

283,200

Long-term loan payables

271,507258,530

Lease obligations

21,087

21,442

Asset retirement obligations

24,16524,767

7－57,195

54,721

Non-current liabilities

Negative goodwill
Other
Total non-current liabilities

577,937

642,660

931,487

1,041,362

Share capital

23,15323,191

Capital surplus

17,121

17,160Retained earnings

376,152

398,055(15)(80,956)

416,411357,449

1,165

1,365

749

(157)

Total liabilitiesNet assets
Shareholders' equity

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans

199

184

2,113

1,391

Share acquisition rights

216

272

Non-controlling interests

19,88820,315

Total accumulated other comprehensive income

Total net assets
Total liabilities and net assets

4

438,628

379,427¥1,370,115¥1,420,789

Consolidated Quarterly Statements of Income(Millions of yen)Six months ended
December 31, 2021
AmountSix months ended
December 31, 2020
AmountNet sales
Cost of sales¥852,861¥917,680

601,667

649,814251,194

267,866

201,865

224,222

49,32943,644

Interest and dividend income

297

604

Amortization of negative goodwill

43

7

Share of profit of entities accounted for using equity method

148

239

Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income

Foreign exchange gains－2,523

Other

2,610

2,027

Total non-operating income

3,098

5,401

Interest expenses paid on loans and bonds

2,505

3,695

Foreign exchange loss1,493－

Cost of claim's liquidation

38

1

Other

200

826

4,236

4,522

48,192

44,523Gain on sales of non-current assets

96

6Gain on insurance claims

822－

Non-operating expenses

Total non-operating expenses
Ordinary income
Extraordinary income

Reversal of provision for environmental measures

173

Other

74

0

Total extraordinary income

993

79

Loss on retirement of non-current assets

379

656

Loss on closing of stores

Extraordinary losses
214

49

Loss on disaster

915

Other

47

256

Total extraordinary losses

649

976

Profit before income taxes

48,536

43,626

Income taxes - current

10,805

9,852

Income taxes – deferred

4,297

3,272

Total income taxes

15,102

13,12533,43430,501

795

353¥32,638¥30,148

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated Quarterly Statements of Comprehensive Income(Millions of yen)

ProfitSix months ended
December 31, 2020

Six months ended
December 31, 2021

AmountAmount¥33,434¥30,501

Other comprehensive income
Valuation difference on available-for-sale securities

204184Foreign currency translation adjustment(583)

(812)

3(6)

12(12)

(364)

(647)

¥33,070¥29,854¥32,243¥29,427

827

427

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of affiliates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to：
Owners of parent
Non-controlling interests

6Consolidated Quarterly Statements of Cash FlowsSix months ended
December 31, 2020
Amount(Millions of yen)Six months ended
December 31, 2021
AmountCash flows from operating activities:
Profit before income taxes
Depreciation and amortization
Amortization of negative goodwill
Decrease in provisions
Interest and dividend income
Interest expenses paid on loans and bonds
Share of profit of entities accounted for using equity method
Loss on sales and retirement of property, plant and equipment
Gain on insurance claims
Increase in notes and accounts receivables – trade
Increase in inventories
Decrease in notes and accounts payables – trade
Increase in accounts receivables – installment
Increase in accounts payables – other
Increase in deposits received
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refund
Proceeds from insurance benefits
Payments for loss on disaster
Dividends received from entities accounted for using equity method
Net cash provided by operating activities¥48,536
14,877(43)(3,535)
(297)
2,505
(148)
283
(822)
(8,741)(16,865)
46,869(6,525)
4,219
4,947
1,112
86,372134(2,524)(12,711)
1,127
1,286
(49)
－
73,635¥43,626
18,453(7)(6,201)
(604)
3,695
(239)
713
－
(9,808)(14,686)
55,750(15,534)
9,578
6,868
(9,647)
81,956419(3,747)(28,143)
15,421－(69)
21
65,857

Cash flows from investing activities:
Payments for purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for purchase of intangible assets
Purchase of shares of subsidiaries and affiliates
Payments for leasehold and guarantee deposits
Proceeds from collection of leasehold and guarantee deposits
Payments for store opening in progress
Loan advances
Other, net
Net cash used in investing activities(18,756)
2,519(1,557)(784)(858)
3,300(261)(801)
46(17,153)(21,707)380(1,808)
－
(338)
766
(546)
－
(69)
(23,321)

1,000(6,289)－(1,108)(3,353)163(7,607)
1,052
－
(23)
(16,165)(2,184)
38,133
183,602¥221,734(826)(15,919)
79,619(1,828)(192)
76(8,245)－(80,941)(852)(29,108)
2,965
16,393160,875¥177,268

Cash flows from financing activities:
Net increase (decrease) in short-term loan payables
Repayments of long-term loan payables
Proceeds from issuance of bonds
Redemption of bonds
Repayments of payables under securitization of lease receivables
Proceeds from issuance of common shares
Cash dividends paid
Proceeds from share issuance to non-controlling shareholders
Purchase of treasury shares
Other, net
Net cash used in financing activities
Effect of foreign exchange rate change on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Cash and cash equivalents at the end of period7

Segment Information
For the second quarter ended December 31, 2021
1. Information concerning sales and income by reporting segment(Millions of yen)
Reporting segment

AdjustmConsolidatedent(Note 3)(Note 2)

Sub Total

Others(Note 1)

Total

29,820910,370

7,310

917,680－

917,680

5,886

642

10,241

2,095

12,337 (12,337)－

661,946

228,20330,462920,6119,405

930,017 (12,337)

917,680¥35,162¥6,417¥5,357¥46,936 ¥(3,371)¥43,565

43,644

DiscountStorebusiness

GMS
businessRentbusiness¥658,233

222,317

3,713

Sales, Segment income
Sales
Sales to third parties
Intersegment sales
Total
Segment income (loss)¥79

Notes1. “Others” includes the service related to the operation of the Company (Holdings Company), Credit card service and soon, which does not belong to the Reporting segment.
2. The ¥79 million adjustment to segment income is an intersegment elimination.
3. Segment income is adjusted to the quarterly consolidated operating income.
2. Information concerning changes in reporting segment
The Company has applied the Accounting Standard for Revenue Recognition, etc. from the beginning of the first quarter
under review, and changed the accounting method for revenue recognition. Accordingly, the Company has also changedthe method of measuring profit or loss of reporting segments.
As a result of this change, sales of the “Discount Store business” for the first quarter of the current consolidated
cumulative period decreased by ¥3,336 million and sales of the “GMS business” decreased by ¥830 million compared tothe conventional method.
3. Information concerning impairment loss of fixed assets or goodwill by reporting segment
Significant change in goodwill
At the time of the business combination with GRCY Holdings, Inc. on April 21, 2021, the amount of goodwill wasdetermined on a provisional basis as the allocation process of the acquisition cost was not completed. With completion ofthe allocation process in the second quarter of the fiscal year ending June 30, 2022, the Company adjusted the amount ofgoodwill in the Discount Store Business segment that had been accounted for on a provisional basis.

For the second quarter ended December 31, 2020
1. Information concerning sales and income by reporting segment(Millions of yen)
Reporting segment
DiscountStorebusiness

GMS
business

Rent
Sub Total
business¥579,345 ¥234,539¥31,834 ¥845,719

Others(Note 1)

Total

¥7,142¥852,861Adjustm
Consolidated
ent(Note 3)(Note 2)

Sales, Segment income
Sales
Sales to third parties
Intersegment sales
TotalSegment income (loss)¥－¥852,861

3,825

4,207

563

8,595

2,282

10,877 (10,877)－

583,170

238,746

32,398854,3149,425

863,738 (10,877)

852,861¥32,254¥11,317¥7,489¥51,060¥ (1,875)¥49,185¥49,329

¥144

Notes
1. “Others” includes the service related to the operation of the Company (Holdings Company), Credit card service and soon, which does not belong to the Reporting segment.
2. The ¥144 million adjustment to segment income is an intersegment elimination.
3. Segment income is adjusted to the quarterly consolidated operating income.
2. Information concerning impairment loss of fixed assets or goodwill by reporting segment
8

Not applicable9