41st Fiscal Year (Ending June 2021)

Q3 Results for FY2021
May 11, 2021
Pan Pacific International Holdings Corporation

INDEX
１

Overview of Q3 results for fiscal year ending June 2021
Director & Senior Managing Executive Officer, CSO

Seiji Shintani
２Strategy and measures for the future
President & CEO, Representative Director

Naoki Yoshida３

Appendix1Explanatory notes for these materials
1. The monetary values presented in these materials are rounded off to the nearest full unit.
2. The following abbreviations are used in these materials: Pan Pacific International Holdings (7532) as “PPIH,” Don Quijote Co., Ltd. and its
stores as “DQ,” UNY Co., Ltd. as “UNY,” UD Retail Co., Ltd. as “UDR,” Singapore as “SG,” Singapore subsidiary as “PPRM (SG),” Hong Kong as“HK,” Hong Kong subsidiary as “PPRM (HK),” Thailand as “TH,”, Japan Asset Marketing Co., Ltd. (8922) as “JAM,” and Group as “GP.”3. PPIH applies the “Ordinance on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements,” but there are sectionsin these materials where the account items and other information have been simplified to an extent where they do not change the intent or
meaning of the contents.
4. From the fiscal year ending June 2021, the method used for the valuation of inventories has been changed from the retail inventory method
to the moving average method, and figures have been adjusted retroactively for comparison in these materials.
5. The exchange rates used for overseas operations are shown below.

(Unit: Yen)

USD

(U.S. dollars)

SGD(Singapore dollars)

THB(Thai baht)

HKD (Hong Kong dollars)

P/L

B/S

P/L

B/S

P/L

B/S

P/L

B/S

Previous
period108.95109.55

79.59

81.06

3.54

3.63

13.91

14.07

Current
period105.55103.52

76.93

78.00

3.38

3.44

13.62

13.35

2

Overview of Q3 results
for fiscal year ending June 2021

3

Earnings summary for Q3

３[Period: July 1, 2020 – March 31, 2021](Unit: Millions of yen)

9 months to Mar 2021

9 months to Mar 2020 *１

Full-year forecast *２

ActualShare

ActualShare

ChangeYoY

Progress *３

ActualShare

Net sales

1,265,759

100.0%

1,268,196

100.0%

2,437

100.2%

74.6%

1,700,000

100.0%

Gross profit

363,63928.7%

369,944

29.2%

6,305

101.7%

74.3%

498,000

29.3%

SG&A

304,22424.0%

303,056

23.9%(1,168)

99.6%

72.5%

418,000

24.6%

Operating profit

59,415

4.7%

66,888

5.3%

7,473

112.6%

83.6%

80,000

4.7%

Recurring profit

58,914

4.7%

67,547

5.3%

8,633

114.7%

85.5%

79,000

4.6%

Profit attributable toowners of parent

37,711

3.0%

45,234

3.6%

7,523

119.9%

85.3%

53,000

3.1%

EPS (Yen)

59.52

−

71.34

−

11.82

119.9%

85.4%

83.58

−

*1. As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current period (FY ending June 2021),
figures related to previous periods have been adjusted retroactively and reflected in these materials.
*2. The forecast was revised upward on February 10, 2021 (OP: 77 to 80 billion yen) from the one published originally on August 12, 2020.
*3. Progress rate shows the rate of progress against the full-year forecast.

4

Summary report of consolidated financial results for Q3
１
Despite the negative impact of COVID-19, net sales
and operating profit reached their records high for Q3.

Discount Store BusinessAlthough pure DQ (mainly near the station store format) continued to struggle due to inbound evaporation and changes in customer
traffic, the strong performance of MEGA DQ (mainly suburban store format) filled the gap, resulting in higher sales YoY. Sales ofhousehold appliances, products for sports, outdoor activities and health, home furniture, etc. increased.

GMS Business
SSS increased with the stay-at-home demand driven by the COVID-19. Processed, frozen and fresh food grew.
7 stores were renewed to New GMS, which matches to the characteristics of the region with specialty stores such as U-food, U-drug,
general store warehouses, etc.
6 stores were converted to UDR for this fiscal year.

Overseas Business
In North America, sales increased with the continued strong alternative demand for eating out.
Asia, which is performing well, has opened 5 new stores (4 stores during this 3Q) and boosted its sales further.
SG&A expenses increased due to initial costs for new stores and the preparation for store openings in new countries, but maintained ahigh operating profit margin.

5Consolidated financial results for Q3 (Year-on-year changes by retailer)
Net Sales Changes

Operating Profit Changes<Million Yen>

<Million Yen>
+ 7,136

66,8881,268,196

1,265,759(1,802)65,000(13,598)

1,260,000+41,350+7,80360,000(19,383)

1,240,000

1,220,000

1,200,0000

70,000+27,938

1,280,000+5,86755,000+829

Previous
Doit
DQ
DQ
Nagasakiya
UNY
UNY
前3Q Q3 ドイト
DQ
DQ
長崎屋
(accumulated) 99 Ichiba (Tax-Free) (Excluding
UDR

99ｲﾁﾊﾞ

(免税) (非免税)Tax-Free)+1,153(6,817)(40,566)(累計)

59,415

UDR

Overseas
海外

Other
他

Current
当3QQ3(accumulated)(累計)

050,000Previous
前3QQ3(accumulated)

(累計)

DQ
DQ

Nagasakiya
長崎屋

UNY
UNY
UDR
UDR

Overseas
海外

Other
他

Current
当3QQ3(accumulated)(累計)

・Sales: Although largely affected by inbound evaporation and business transfer (Doit and 99 Ichiba), UNY, UD Retail, and overseas business
contributed.
・Operating profit: Increased significantly in UD Retail and overseas business, which drove the overall OP upward.
- The figures for net sales and operating profit are simple totals for each company. Differences with consolidated results are adjusted using "Other".
- DQ merged with Lilac Co., Ltd. in July 2020. Figures for this Q3 are after the merger.
- UNY merged with Unifood Co., Ltd. in July 2020 and NEXCOM Inc. in October 2020. The figures for Q3 are after the mergers.
- Overseas is a simple total of DQ USA, MARUKAI, QSI, PPRM (SG), PPRM (HK) and DONKI Thailand.
Overseas results are cumulative totals for the period from April to December 2020.

6

Retail operations information for Q3[Period: July 1, 2020 – March 31, 2021]▶Domestic retail(Unit: Millions of yen)

Don Quijote

Nagasakiya

9 months to
Mar 2020

9 months to
Mar 2021

YoY

9 months to
Mar 2020

9 months to
Mar 2021

Sales *１

534,866

500,167(34,699)

144,060

144,889

Gross profit

132,120

123,599(8,521)35,016Gross profit ratio

24.7%

24.7%

±0.0ptSG&A

112,344

110,641

Operating profit

19,776

Operating profit ratio

UD Retail9 months to
Mar 2020

9 months to
Mar 2021

829

71,169135,71435,430414

17,202

24.3%

24.5%

0.2pt

(1,703)30,99430,255

12,959(6,817)

4,022

3.7%

2.6%

(1.1pt)Total assets

286,722

308,068

Net assets

146,981

175,301▶Overseas retail

9 months to
Mar 2020

9 months to
Mar 2021

YoY

64,545

397,652

374,457(23,195)

34,68017,478

129,919

125,703(4,216)

24.2%

25.6%

1.4pt

32.7%

33.6%

0.9pt

(739)

21,61833,321

11,703

108,487

102,245(6,242)

5,175

1,153

(4,417)

1,359

5,776

21,432

23,459

2,027

2.8%

3.6%

0.8pt

(6.2%)

1.0%

7.2pt

5.4%

6.3%

0.9pt

21,34684,44287,856

3,414

48,28960,885

12,596

381,975

386,993

5,018

28,32055,26258,903

3,641

787

873

86

82,113

114,280

32,167

North America *２
9 months to
Mar 2020

9 months to
Mar 2021

Sales *１

69,29075,509Gross profit

21,593Gross profit ratio

UNY

YoY

YoY

Asia *３
9 months to
Mar 2020

9 months to
Mar 2021

6,219

12,921

34,64021,71924,143

2,550

3,863

12,026

8,163

31.2%

32.0%

0.8pt

29.9%

34.7%

4.8pt

SG&A

19,36418,907

(457)

4,543

8,577

4,034

Operating profit

2,229

5,236

3,007

(680)

3,449

4,129

Operating profit ratio

3.2%

6.9%

3.7pt

(5.3%)

10.0%

15.3ptTotal assets

34,306

37,836

3,530

27,69730,2702,573

Net assets

25,192

28,526

3,334

5,519

8,751

3,232

YoY

YoY

*1. As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current period, figures related to previous periods have been adjusted
retroactively and reflected in these materials.
*2. Figures for North America are the simple aggregate for DQ USA, MARUKAI, and QSI. Results are for the period from April to December 2020.
*3. Figures for Asia are the simple aggregate for PPRM (SG), PPRM (HK), and DONKI Thailand. Results are for the period from April to December 2020.

7

Summary of results by company (Don Quijote)
Changes in operating profit

Trends in sales at existing stores<%><Million Yen>
20,00019,776120(8,571)

DQ existing store sales(excluding tax-free)

18,000110

Number of Customers

Average Customer Spend

16,00014,00012,000+1,703

12,959100+51

10,00090

DQ existing store sales

8,000
6,000
0

Previous
Impact of sales Changes
in gross 販管費のChanges
前3Q 3Q 売上増減に総利益率(accumulated)changes on gross profit
marginin
SG&A(累計)
伴う粗利影響の変動
変動
profitCurrent
当3QQ3(accumulated)
(累計)

80

4

5

6

7

8
2020

9

10

11

12

1

2

3

4

2021

- Due to the evaporation of inbound sales and the change in customer traffic, stores near the station, mainly in the Kanto region, continued to struggle.
- Although sales and OP of suburban stores increased due to the inflow from the urban areas, overall sales and OP stood lower YoY with sluggish near
the station stores.
- This Q3 was affected by the impact of the leap days and special demand sales of the previous year, as well as the inbound evaporation.
- DQ merged with Lilac Lilac Co., Ltd. in July 2020. Figures for the current Q3 are post-merger.
- As inventory valuation methods have been changed from a retail method to a moving-average method from the current quarter, the figures for the previous quarter have been retroactively
adjusted.

8

Summary of results by company (UNY)
Changes in operating profit

Trends in sales at existing stores<%><Million Yen>

+6,242

24,00022,00021,432

23,459120

UNY existing store sales(7,578)Average Customer Spend

20,00018,000110+3,36316,00014,000100

12,00010,0008,000
0Previous
Impact of sales Changes
in gross 販管費のChanges
前3Q 3Q 売上増減に総利益率(accumulated)changes on gross の変動
profit margin
in SG&A(累計)
伴う粗利影響変動
profitCurrent
当3QQ3(accumulated)
(累計)

90

Number of Customers
4

5

6

7

8
2020

9

10

11

12

1

2

3

4

2021

- GMS business improved steadily and 6 stores have been converted to UDR (no conversion was implemented in this 3Q period).
- Operating profit increased to 23.5 billion yen (up 9.5%) due to the improvement in gross profit margin (+0.9pt) and the decrease in SG&A expenses.
- SSS remained strong, except for the factors of leap day and the special demand in the previous year.
- 7 stores have been renewed to new GMS stores.
- UNY merged with Unifood Co., Ltd. in July 2020 and NEXCOM Inc. in October 2020. The figures for Q3 are after the mergers.

9Overseas business overview (North America, Asia)
Changes in operating profit (North America)

Changes in operating profit (Asia)<Million Yen>

<Million Yen>

+457

5,500

5,236

8,000

+612

5,000
4,500

7,000

+1,938

3,500

5,000

3,000

4,000

2,229

(4,034)

2,000

1,500

1,000

1,000

0

500

-1,0000Previous
Impact of sales 総利益率
Changes in gross販管費のChanges
前3Q 3Q 売上増減に(accumulated)changes on gross の変動
profit margin
in SG&A(累計)
伴う粗利影響変動
profit

-

3,449

3,000

2,000

-

+6,493

6,000

4,000

2,500

+1,670Existing stores continued to perform well capturing the alternative needs
for eating out.
Operating profit largely increased by 2.3 times YoY to 5.2 billion yen byincreasing its top line, gross profit margin, and reducing SG&A expenses.

(680)

Previous
前3Q3Q(accumulated)(累計)

Current
当3QQ3(accumulated)(累計)-

Impact of sales Changes
in gross 販管費のChanges
売上増減に総利益率
changes on gross profit
marginin
SG&A
伴う粗利影響の変動
変動
profitCurrent
当3QQ3(accumulated)(累計)

Sales largely increased by 2.7 times YoY to 34.6 billion yen with its strong SSS
and 5 new store openings.
Although the SG&A expenses rose due to the cost of the new stores and the
preparation of the store opening in new countries, operating profit margin
stood at 10.0%.

- North America is a simple sum of DQ USA, MARUKAI, and QSI. Actual results are for the period April to December 2020.
- Asia is the simple sum of PPRM (SG), PPRM (HK), and DONKI Thailand. Actual results are cumulative totals for April to December 2020.

10

Q3 segment information (by corporation)▶ Segment overview by corporation for previous Q3 [Period: July 1, 2019 – March 31, 2020]*1
Overseas *3(Unit: Millions of yen)

JAM *1*4

UCS *5

Consolidated

82,211

17,001

15,3591,265,759

21,432

1,549

6,437

1,633

59,41548,289381,975

62,003

169,406

104,234

1,250,879

787

82,11330,711109,158

9,948

374,734

Don Quijote *1

Nagasakiya*1

UD Retail *1

UNY *2

Sales

534,866

144,060

71,169397,652

Operating profit

19,776

4,022(4,417)

Total assets

286,722

84,442

Net assets

146,981

55,262▶ Segment overview by corporation for current Q3 [Period: July 1, 2020 – March 31, 2021](Unit: Millions of yen)
*1
JAM *4

UCS *5

Consolidated

110,149

16,361

14,011

1,268,196

23,459

8,685

5,788

979

66,88860,885386,993

68,106

162,656

167,012

1,323,312873

114,280

37,277

114,874

10,053425,459

Don Quijote *1

Nagasakiya *1

UD Retail *1

UNY *2

Sales

500,167

144,889

135,714374,457

Operating profit

12,959

5,175

1,359

Total assets

308,068

87,856

Net assets

175,301

58,903*1
Overseas *3*1. The main businesses are discount store operations and its subsidiary operations.
*2. The main businesses are GMS and tenant leasing operations.
*3. Figures for overseas operations are the simple aggregate for DQ USA, MARUKAI, QSI, PPRM(SG), PPRM(HK), and DONKI Thailand.
Results for overseas operations are for the period from April to December 2020, while BS items are as of December 31, 2020.
*4. PL items related to JAM are actual results from July 1, 2020 to March 31, 2021, while BS items are as of March 31, 2021.
*5. The main business is credit card business.

11

Q3 segment information (by business)*1▶ Segment overview by business for previous Q3 [Period: July 1, 2019 – March 31, 2020] *2

Discount store

GMS

Tenant leasing

Other *3

(Unit: Millions of yen)

Total

Adjusted

Consolidated

Sales to externalcustomers

831,684

378,266

44,53011,2791,265,759−

1,265,759

Internal sales ortransfers between
segments

3,926

4,240

2,543

4,803

15,512(15,512)−

Total

835,610

382,506

47,07316,082

1,281,271(15,512)1,265,759

Segment profit

35,886

13,123

10,506(811)

58,704711

59,415▶ Segment overview by business for current Q3 [Period: July 1, 2020 – March 31, 2021] *1
Discount store

GMS

Tenant leasing

Other *3

(Unit: Millions of yen)

Total

Adjusted

Consolidated

Sales to externalcustomers

868,670

342,393

46,483

10,6491,268,196−

1,268,196

Internal sales ortransfers between
segments

5,473

6,240

873

3,382

15,968(15,968)−

Total

874,143

348,633

47,356

14,031

1,284,164(15,968)

1,268,196

Segment profit

45,23814,015

10,498(3,138)66,613275

66,888*1. Reported segments are organized by the format of service provision, and comprises discount store, GMS, and tenant leasing operations.
*2. As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current period (FY ending June 2021),
figures related to previous periods have been adjusted retroactively and reflected in these materials.
*3. ”Other” includes holding company management, credit card business, etc.

12

Q3 overview of results by consolidated businesses[Period: July 1, 2020 – March 31, 2021](Unit: Millions of yen)

9 months to March 2020
Actual9 months to March 2021

Share

Actual

Share

YoY

831,68465.7%

868,67068.5%

104.4%

Home electrical appliances

64,208

5.1%

67,9065.4%

105.8%

Miscellaneous household goods

181,996

14.4%

168,107

13.3%

92.4%

Food products

308,02424.3%

344,05027.1%

111.7%

Watches and fashion merchandise

120,555

9.5%

109,982

8.7%

91.2%

Sporting goods and leisure goods

43,757

3.5%

46,7403.7%

106.8%

DIY goods

8,632

0.7%

−

−

−

Overseas81,4496.4%

110,3288.7%

135.5%

Other

23,063

1.8%

21,558

1.7%

93.5%

378,266

29.9%

342,393

27.0%

90.5%

Clothing

48,6583.8%

40,586

3.2%

83.4%

Household goods

57,961

4.6%

54,567

4.3%

94.1%

Food products

258,03220.4%

243,671

19.2%

94.4%

Other

13,614

1.1%

3,569

0.3%

26.2%

Tenant leasing operations *１

44,5303.5%

46,4833.7%

104.4%

Other business operations *２

11,2790.9%

10,649

0.8%

94.4%

1,265,759

100.0%

1,268,196

100.0%

100.2%

Discount store operations *１

GMS *１Total*1. Reported segments are organized by the format of service provision, and comprises discount store, GMS and tenant leasing operations.
*2. ”Other” includes holding company management, credit card business, etc.

13

Status of major assets(Unit: Millions of yen)

June 2020

Status of major assets

March 2021

ActualActual494,138

520,565

26,427

Cash and Deposits

179,785

202,487

22,702

Account receivableinstallment

68,293

66,913(1,380)

Products

187,775

195,583

7,808

Non-Current Assets

803,093

802,747(346)

Buildings, etc.

264,035

264,12691Land

325,499

323,337(2,162)Intangible Assets

36,88336,370(513)

Lease andGuarantee Deposits

78,62474,527(4,097)

1,297,231

1,323,312

26,081*1

Current Assets

Total Assets

Change▶ Total assets: 1,323.3 billion yen (+26.1 billion yen)<Current Assets>▶ Cash and deposits: 202.5 billion yen (+22.7 billion yen)
▶ Account receivable-installment:
66.9 billion yen (-1.4 billion yen)
▶ Products: 195.6 billion yen (+7.8 billion yen)<Non-Current Assets>▶ Tangible fixed assets: 623.6 billion yen (+0.9 billion yen)
The main factors leading to change were an increase of 19.8
billion yen in depreciation and an increase of 27.4 billion yen in
investments related to store openings, etc.

*1. As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current period (FY ending June 2021),
figures related to previous periods have been adjusted retroactively and reflected in these materials.

14

Status of major liabilities and net assets(Unit: Millions of yen)

June 2020

March 2021

Status of major liabilities and net assets

ActualActualTotal Current Liabilities

312,227

311,559(668)

Accounts Payable-Trade148,226

148,778

552

Short-Term Liabilities * 2

25,11737,712

12,595

Total Noncurrent
Liabilities

596,005

586,294(9,711)

Corporate Bonds

226,542

223,976(2,566)Long-Term Borrowings

276,191

268,380(7,811)

191

−

(191)

Total Liabilities

908,232

897,853(10,379)

Net Assets

388,999

425,459

36,4601,297,231

1,323,312

26,081*1Long-Term Payables Under
Fluidity Lease Receivables

Liabilities and Net
AssetsChange▶ Interest-bearing debt: 530.1 billion yen (+2.2 billion yen)・New borrowings: 26.4 billion yen
・Repayment of borrowings: 12.3 billion yen
・Redemption of bonds: 11.9 billion yen▶ Net D/E ratio: 0.81x▶ Interest coverage ratio: 17.9 times * 3▶ ROE: 15.5% (annualized)< Current Liabilities >▶ Accounts payable-trade:148.8 billion yen (+0.6 billion yen)
▶ Short-term debt: 37.7 billion yen (+12.6 billion yen)

< Non-current Liabilities >▶ Long-term liabilities: 492.4 billion yen (-10.4 billion yen)
▶ Net assets: 425.5 billion yen (+36.5 billion yen)
▶ Shareholders‘ equity: 405.8 billion yen(Capital adequacy ratio: 30.7%)*1. As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current period (FY ending June 2021),
figures related to previous periods have been adjusted retroactively and reflected in these materials.
*2. Short-term liabilities = Short-term loans payable + Current portion of long-term loans payable + Current portion of bonds*3. Interest coverage ratio = (Operating profit + Interest and dividends income) / Interest due

15

Status of cash flows and capital expenditure▶ Cash Flow Status(Unit: Millions of yen)

9 months toMarch 2020
Actual9 months to March 2021
ActualChange*1Cash Flow
Operating Cash Flows▶ Positive items: Increase of 67.8 billion yen in income before income

Balance at Beginning of Period

185,136

183,602(1,534)

Cash Flows from Operating
Activities

51,361

63,20911,848Cash Flows from Investing
activities(23,207)(30,463)(7,256)28,15432,746

4,592

Cash Flows from Financing
Activities(61,366)(10,214)

51,152

Change During the Period(31,929)

22,532

54,461

Balance at End of Period

153,207

206,133

52,926

Free Cash Flow * 2

taxes and others, 22.4 billion yen in depreciation and amortization, anddecrease of 1.3 billion yen in notes and accounts receivable-installment▶ Negative items: Increase of 2.7 billion yen in notes and accounts
receivable-trade, 8.1 billion yen in inventory assets and 19.3 billion
yen in income taxes paid, resulting in 63.2 billion yen of cash
inflow.

Investment Cash Flows▶ Cash outflow of 30.5 billion yen was mainly due to 27.4 billion yen for
tangible fixed assets acquisition associated with store openings,
2.5 billion yen for intangible assets acquisition, etc.

Financing Activity Cash Flows▶ Cash outflow of 10.2 billion yen was mainly due to 11.9 billion yen

for redemption of bonds, 4.1 billion yen for payables under fluidity
lease receivables repayments, 9.5 billion yen for cash dividend
payments, etc., while 14.1 billion yen increased for net amount ofshort-term and long-term borrowings.

*1. As the method for the valuation of inventories has been changed from the retail inventory method to themoving average method since the current period (FY ending June 2021), figures related to previous periods
have been adjusted retroactively and reflected in these materials.
*2. Free Cash Flow = CF from operating activities + CF from investing activities.

Capital Expenditure▶ Status of capital expenditures
Capital Expenditures

28,37030,545

2,175▶ Capital expenditure: 30.5 billion yen(DQ: 4.8 billion yen, Nagasakiya: 2 billion yen, UDR: 4.9 billion yen.
UNY: 5.5 billion yen, JAM: 1 billion yen, PPIH: 4.2 billion yen, etc.)

16Strategy and measures
for the future
・Discount store business
・GMS business・Overseas business

17

Discount store businessAs a first step to strengthen the hypothesis-verification cycle, the "100-day project" has been implemented in 6 stores.
The accomplishments will be gradually expanded, and further hypothesis verification will be made in the next fiscal year and beyond.

Contents of the “100-day project”

・ Invested about 30 million yen for each store for therenovation and inventory digestion (= improvementof inventory turnover rate)
・ Implemented intensive hypothesis verification for thefollowing multiple issues

・ Measures that were confirmed by the PJ will be

Short-term

Implement of intense hypotheses verification with
low investment on a store-by-store basis

Individual store-by-store initiatives will
start by order■ Sluggish spot rate because SKU cannot be narrowed down

expanded horizontally(e.g. shelves for standard products will be introduced toall stores by July)・ About 200 hypotheses have already been listed for next
verification, and we will start from June byselecting them and assembling a budget in the
future (redefinition of delegation of authority will
also be implemented at the same time)■ PB expansion is not progressing sufficiently■ Measures against competitors are not enough■ Store layout is not following the lifestyle changes, etc.

・ Since hypothesis verification on a store-by-store basis can be
carried out quickly at a low budget, we will accelerate thismeasure・ Organizational issues were also seen in strengthening efforts
across stores

Medium-term

Accomplishments and insights

Company-wide initiatives beyond the scopeof individual stores and branches will start by
preparing a mechanism and organizations.
(e.g., store renovation with investment, DX promotion,
strategic PB development, automatic ordering, businessflow review)18

Discount store business▶ “100-day project” implemented stores

Tohachi Mitaka Takasaki

Sendai-minami Takaoka

Takamatsu

Nishijin(Tokyo：342 tsubo)
May 1999 Open(Miyagi：679.8 tsubo)
July 2005 Open(Kagawa：758.3 tsubo)
Dec 2004 Open(Fukuoka：298.5 tsubo)
Feb 2002 Open

(Gunma：601.8 tsubo)Oct 2003 Open(Toyama：739.3 tsubo)
Mar 2013 Open▶ Examples of renovation
Creating a store layout as a measure against
competition

Widening the aisles

PB does not stand out

Various POPs and signs are mixed up
in the main aisle

Aisle with no extra room

Secure a fixed position in the shelfand strengthen the promotion

Thorough appeal of competitive prices in the mainaisle

Widen the aisle so that a shopping
cart can pass

After

BeforeStrengthening PB
in standard shelves

etc.

19

GMS Business▶ UNY
Store renewal to New GMS accelerated in Q3. We plan to renew the remaining 4 stores for this fiscal year.
March 19 OPEN (Renewed for the 2nd time)
PIAGO Power Myokoji

Sales in April, 2021
YoY

146.5%・Strengthened the store once again which was
renewed in June last year
・Expanded sales floor area by introducing 4

March 26 OPEN Apita Inazawa

・Doubled the number of items for drugstore
・Expanded 10 times more of kitchen & dining

household goods, and medicine on the 1st floor.
・Improved the mobility of customers by
転換後
After

138.0%

managed stores consisted of a collection of
specialty stores.
・Strengthened product lineup by introducing a
directly managed specialty store for food,

転換前
BeforeYoY

・Rearranged tenants mainly with directly

specialty stores with enhanced expertise・Strengthened quality fresh fooditems and cooking appliances which are in highdemandSales in April, 2021

relocating tenant specialty stores on the 2nd floor
・Expanded clothing department to meet the

転換前
Before転換後
Afterneeds of new families and younger generations

March 31 OPEN
Power Super PIAGO Fujinomiya

Sales in April, 2021
YoY

・Doubled the directly managed sales floor so

302.5%

that customers can buy daily necessities for one
stop.

Renewed
リニューアル店舗平均
Stores Avg. (9 stores)
９店舗※Sales※21年4月実績
in April, 2021

Sales

Number of customers

141.8%

138.8%

・Increased the number of foods and offer thebest price in the commercial area based oncompetitive research・Expanded the number of daily consumables
and kitchen utensils in clothing and housing
segment
・Started handling pharmaceutical products

転換前
BeforeAfter
転換後
BeforeAfter
Before
転換前
転換後
転換前*1. Results of directly managed departments, excluding concept stores*2. The sales of Utsunomiya store include those of UDR store

After
転換後

20

Sales topics (overseas business)▶ AsiaAsian businesses continued to perform well with the support from customers.
In March, first store was opened in Malaysia. 20 stores in 5 different countries to be opened by the end of May 2021.
Opened January 19, 2021

Asia: Number of stores by country
2020

Ximen (first store in Taiwan)

Opened March 19, 2021

JONETZ by DON DON DONKI Lot10(first store in Malaysia)

2021

Jun

Dec

Mar

May

Singapore

7

8

8

9

Hong Kong

2

6

7

7

Thailand

2

2

2

2

Taiwan0

0

1

1

Malaysia

0

0

1

1

Total

11

16

19

20

“Jonetsu Kakaku”
Period sales: Approx. 50 million yen,
Share in sales: Approx. 15%(Results for April 2021)(No. of Stores)

Latest sales
Ximen(Taiwan)
JONETZ by DON
DON DONKI Lot10(Malaysia)

Approximately
530 million yen

Strawberries
Period sales: Approx. 25 million yen(Results for April 2021)

We handle a wide variety of Wagyu
beef processed at halal-certified
facilities.

In addition to Halal certified
products, we are developing nonpork and non-alcoholic products.

(Results for April 2021)

Approximately
320 million yen(Results for April 2021)

21

Full-year forecast of consolidated results(Unit: Millions of yen)

Results forthe previous fiscal year *１
Actual *１

Full-year forecast *２

Share

Actual

Share

YoY

1,681,947

100.0%

1,700,000

100.0%

101.1%

Gross profit

481,11628.6%

498,000

29.3%

103.5%

SG&A

405,69224.1%

418,000

24.6%

103.0%

Operating profit

75,4244.5%

80,0004.7%

106.1%

Recurring profit

74,6004.4%

79,0004.6%

105.9%

Profit attributable to ownersof parent

49,9273.0%

53,0003.1%

106.2%EPS (Yen)

78.79

-

83.58

-

106.1％

Dividends per share (Yen)

15.00

-

16.00

-

106.7%

Depreciation

22,841

1.4%

26,5001.6%

116.0%Sales*1. As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current period (FY ending June 2021),
figures related to previous periods have been adjusted retroactively and reflected in these materials.
*2. The forecast was revised upward on February 10, 2021 (OP: 77 to 80 billion yen) from the one published originally on August 12, 2020.

22

Appendix

23

Earnings summary for Q3[Period: January 1, 2021 – March 31, 2021](Unit: Millions of yen)２

3 months to March 2021

3 months to March 2020 *１
ActualShare

ActualSales

406,970

100.0%

415,335

100.0%

8,365

102.1%

Gross profit

116,65128.7%

118,750

28.6%

2,100

101.8%

SG&A

101,54425.0%

101,191

24.4%

(352)

99.7%

Operating profit

15,107

3.7%

17,559

4.2%

2,452

116.2%

Recurring profit

14,163

3.5%

19,355

4.7%

5,192

136.7%

Profit attributable to ownersof parent

9,347

2.3%

12,596

3.0%

3,248

134.8%

Share

ChangeYoY*1. As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current period, figures related to previous
periods have been adjusted retroactively and reflected in these materials.

24

Q3 year-on-year changes by retailer[Period: January 1, 2021 – March 31, 2021]
Changes in sales

Changes in operating profit<Millions of yen>

<Millions of yen>

410,000
400,000
390,000

18,000+9,049420,000(3,242)+12,204

406,970(4,539)+3,784415,335+2,533+239

17,559

Other
他

Current
当3Q Q317,00016,000+719

15,000(9,610)380,000

14,000370,000

13,00015,107+1,591+327

0360,000

Previous
Doit
DQ
DQ
UNY
前3Q Q3 ドイト
DQ
DQ Nagasakiya
長崎屋 UNY
99
Ichiba (Tax-free)
UDR
UDR
99ｲﾁﾊﾞ
(免税) (excluding(非免税)
Tax-free)Overseas
海外

Other
Current
他
当3Q Q30
12,000(2,238)Previous
前3Q Q3DQ
DQ

Nagasakiya
長崎屋

UNY
UNY
UDR
UDR

Overseas
海外・The figures for sales and operating profit presented here are the simple aggregate for each company. Differences with the consolidated results are adjusted in other areas.
・DQ merged with Lilac in July 2020. Figures for current Q3 represent results after the merger.
・UNY merged with Unifood Co., Ltd. in July 2020 and NEXCOM Inc. in October 2020. The figures for Q3 are after the mergers.
・Figures for overseas operations are the simple aggregate for DQ USA, MARUKAI, QSI, PPRM(SG), PPRM(HK) and DONKI Thailand.
Results for overseas operations are for the period from October to December 2020.

25

Q3 retail operations information[Period: January 1, 2021 – March 31, 2021](Unit: Millions of yen)

▶ Domestic retail

Don Quijote

Nagasakiya

3 months to
Mar 2020

3 months to
Mar 2021

YoY

3 months to
Mar 2020

3 months to
Mar 2021

Sales *１

167,988

162,162(5,826)46,43247,151Gross profit

41,79639,395(2,401)

11,246Gross profit ratio

24.9%

24.3%

(0.6pt)SG&A

36,87536,713Operating profit

4,921

Operating profit ratio

2.9%▶ Overseas retail

UD Retail3 months to
Mar 2020

3 months to
Mar 2021

719

28,07911,419

173

24.2%

24.2%

(162)

10,2682,683(2,238)1.7%(1.2pt)YoY

3 months to
Mar 2020

3 months to
Mar 2021

YoY

47,031

18,952

124,700

117,952(6,748)

7,138

11,860

4,722

40,50938,998(1,511)±0.0pt

25.4%

25.2%

(0.2pt)

32.5%

33.1%

0.6pt

10,114

(154)

8,678

11,2302,552

34,19633,266

(930)

978

1,305

327

(1,541)

630

2,171

6,313

5,733

(580)

2.1%

2.8%

0.7pt

(5.5%)

1.3%

6.8pt

5.1%

4.9%

(0.2pt)North America *２
3 months to
Mar 2020

3 months to
Mar 2021

Sales *１

24,60325,315Gross profit

7,594

Gross profit ratio

UNY

YoY

Asia *３
3 months to
Mar 2020

3 months to
Mar 2021

712

5,326

13,663

8,337

7,994

400

1,567

4,787

3,220

30.9%

31.6%

0.7pt

29.4%

35.0%

5.6pt

SG&A

6,627

6,235

(392)

1,951

3,430

1,479

Operating profit

967

1,759

792

(384)

1,357

1,741

Operating profit ratio

3.9%

6.9%

3.0pt

(7.2%)

9.9%

17.1ptYoY

YoY*1. As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current period, figures related to previous periods have been adjusted
retroactively and reflected in these materials.
* 2. Figures for North America are the simple aggregate for DQ USA, MARUKAI, and QSI. Results are for the period from October to December 2020.
* 3. Figures for Asia are the simple aggregate for PPRM (SG), PPRM (HK), and DONKI Thailand. Results are for the period from October to December 2020.

26

Q3 overview of results by consolidated businesses[Period: January 1, 2021 – March 31, 2021](Unit: Millions of yen)

3 months to March 2020
Actual3 months to March 2021

Share

ActualShare

YoY

270,732

66.5%

289,32569.7%

106.9%

Home electrical appliances

20,597

5.1%

22,601

5.4%

109.7%

Miscellaneous household goods

58,18814.3%

56,075

13.5%

96.4%

Food products

105,806

26.0%

117,806

28.4%

111.3%

Watches and fashion merchandise

35,288

8.7%

33,099

8.0%

93.8%

Sporting goods and leisure goods

12,466

3.1%

13,2273.2%

106.1%

DIY goods

936

0.2%

−

−

−

Overseas

29,662

7.3%

38,9809.4%

131.4%

Other

7,790

1.9%

7,536

1.8%

96.7%

117,70228.9%

107,854

26.0%

91.6%

Clothing

13,677

3.4%

11,574

2.8%

84.6%

Household goods

16,996

4.2%

17,0134.1%

100.1%

Food products

82,95020.4%

77,927

18.8%

93.9%

Other

4,079

1.0%

1,341

0.3%

32.9%

Tenant leasing operations *１

14,824

3.6%

14,649

3.5%

98.8%

Other business operations *２

3,712

0.9%

3,507

0.8%

94.5%

406,970

100.0%

415,335

100.0%

102.1%

Discount store operations *１

GMS *１Total*1. Reported segments are organized by the format of service provision, and comprises discount store, GMS and tenant leasing operations.
*2. ”Other” includes holding company management, credit card business, etc.

27

Comments on consolidated business results in Q3
Discount store businesses: 289.3billion yen(+ 6.9 % YoY)

Alongside the negative effect of no tax-free sales and leap days of previous year, stay-at-home demand continued.
Cosmetics, haircare products and clothing turned positive after one year of COVID-19 influence.

▶ Home electronic appliances: 22.6 billion yen

In addition to the strong performance of heating appliances and air purifiers, TVs, cooking and beauty appliances also grew.

▶ Daily necessities: 56.1 billion yen

The events and chances for going out increased compared to the previous year, causing growth for cosmetics, hair care, sunscreen, etc.

(+ 9.7 % YoY)

▶ Food products: 117.8 billion yen( -3.6% YoY)(+ 11.3 % YoY)

Demand for eating in further expanded under the prolonged COVID-19 influence, boosting the food growth.
Sales for alcoholic beverages and delicacies increased. Fresh and processed meat, and desserts also contributed.

▶ Timepieces/fashion accessories: 33.1 billion yen(- 6.2 % YoY)

Clothing turned positive in March after one year of COVID-19 influence.
Although high-end watches and imported luxury goods are still struggling, the signs of improvement were shown as the negative range
has been narrowed down.

▶ Sports/leisure goods: 13.2 billion yen(+ 6.1% YoY)

Sports related products stayed strong reflecting the health-conscious trend associated with COVID-19.
Demand shift from indoors to outdoor, light sports, cycling, etc. Protein was solid.

(+ 31.4% YoY)

Asia continued to perform well with 3 new stores in Hong Kong and 1 in Singapore.
In North America, demand against COVID-19 continued.

▶ Overseas: 39 billion yen

General merchandise stores (GMS) business:
107.9 billion yen(- 8.4 % YoY)

In response to the second state of emergency, demand for food increased once more.
In addition to the stay-at-home demand, “new life” related demand which was sluggish in the previous year
improved with events such as graduation and entrance ceremonies resumed.

▶ Apparel: 11.6 billion yen(- 15.4 % YoY)

Clothing turned positive from March.
This category widely grew including school-related clothing, formal wear, bags and accessories, etc.

(+0.1 % YoY)

Demand for sanitary products such as masks continued.
Sales of home appliances, beauty appliances, interiors, bedding, and cleaning products were strong, capturing demands for new life.

(- 6.1% YoY)

Dairy and fresh food were solid as an alternative for eating out.
Confectionery, processed foods, and alcoholic beverages were strong.

▶ Homeware : 17 billion yen▶ Food products: 77.9 billion yen

Tenant leasing business: 14.6 billion yen(-1.2% YoY)

Some tenants evacuated under the influence of COVID-19, because the number of customers decreased.

28

Breakdown of SG&A
[Period: January 1, 2021 – March 31, 2021](Unit: Millions of yen)

3 months to Mar 2020 *１

Actual3 months to Mar 2021

Share

ActualShare

YoY

101,54425.0%

101,191

24.4%

99.7%

Salaries and allowances

36,401

8.9%

38,3949.2%

105.5%

Rent

13,545

3.3%

13,314

3.2%

98.3%

Commission paid

14,9473.7%

13,628

3.3%

91.2%

Depreciation

5,925

1.5%

6,315

1.5%

106.6%

Other

30,727

7.6%

29,540

7.1%

96.1%

SG&A

[Period: July 1, 2020 – March 31, 2021](Unit: Millions of yen)

9 months to Mar 2020 *１

Actual9 months to Mar 2021

Share

Actual

Share

YoY

SG&A

304,22424.0%

303,056

23.9%

99.6%

Salaries and allowances

108,160

8.5%

113,7309.0%

105.1%

Rent

40,501

3.2%

39,603

3.1%

97.8%

Commission paid

45,805

3.6%

42,832

3.4%

93.5%

Depreciation

17,8891.4%

19,0041.5%

106.2%

Other

91,8707.2%

87,887

6.9%

95.7%

*1. As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current period,
figures related to previous periods have been adjusted retroactively and reflected in these materials.

29

About UDR▶ [Stores operating for one year or more] 30 stores for conversion to１
double-name business format *１
Sales

Customer traffic

(％)
120

(％)
120

YoY
Comparison

115

110

105

105

100

100

95

95
4

5

6

7

8

9

10

11

2020

12

1

2

3

4

(month)90

52
41

＋11

＋25

16
4

5

6

7

8

2021

9

10

11

12

1

2

3

2020

＜ Aforementioned ＞

Approx. 80
storesYoY
Comparison

115

110

90

Schedule of business transformation

6

4 (month)
2021

＋10

Jun 2018 Jun 2019 Jun 2020 Jun 2021 Jun 2022 Jun 2023

Plan to increase UNY and UDR earnings

Operating profit
600（Hundreds of million yen）

Size of circle: Sales
Center of circle:
Operating profit (Left axis)

UNY ＋ UDR
Plan

400

UNY ＋ UDR
ActualOperating profit
Increase by
20 billion yen

200

0
Feb 2019

Jun 2019*1. Results of directly managed departments, excluding concept stores

Jun 2020

Jun 2021

Jun 2022

Jun 2023

Jun 2024

30

Store openings for current period
15 new stores has been opened by this Q3.
New store openings for the full year: 13 in Japan, 8 overseas, and 11 UDR conversions.
Corporation

Businessformat

1Q
Jul

DQ

2Q

3Q

Aug

Sep

Oct

Nov

Dec

Kawagoe
Higashiguchi(Saitama)

Shibata(Niigata)

Matsuyama
Okaido(Ehime)Sevenpark Ario
Kashiwa(Chiba)Shinshu Nakano(Nagano)

Jan

4Q

Feb

Mar

Discount

Jun

Tsuruga(Fukui)Isawa(Yamanashi)

Shimokitazawa(Tokyo)Musashi Urawa(Saitama)

Yamashina(Kyoto)Tomigusuku(Okinawa)

MiyazakiTachibana-dori(Miyazaki)
Kaguyama(Aichi)

UDR

May

Tookamachi(Niigata)

Sakae San-chome(Aichi)Goshogawara(Aomori)

MEGA

Apr

Kakegawa(Shizuoka)

Kira(Aichi)

DQ APITA
Utsunomiya(Tochigi)

Konan(Aichi)Seikadai(Kyoto)Jyushiyama(Aichi)Takamori(Nagano)Aizuwakamatsu(Fukushima)

Iwakura（Aichi）

GMS

UNY

Mitake（Gifu）Okaya（Nagano）

Kayaba（Aichi）(New GMS)

Inazawa（Aichi）

1 Apita store

1 Piago store

2 Piago stores

Fujinomiya（Shizuoka）
Akaike（Aichi）

Pearl City
(Hong Kong)

Overseas *１

100QRC(Hong Kong)

Monterey Place(Hong Kong)

Jonetz Market
Peak Galleria(Hong Kong)

Ximen(Taiwan)Island Resort Mall

(Hong Kong)

Lot10(Malaysia)

Downtown East
(Singapore)

HarbourFront(Singapore)*1. As the fiscal year ends in March for overseas corporations, the number of stores for each quarter is adjusted for the applicable fiscal year.

＝ Conversion of business format

31

Store network
No. of stores by format
FY2019FY2020

Don Quijote

212

MEGA *１

No. of stores by corporation
FY2021FY2019FY2020

1Q

2Q

3Q

339

342

346

346

44

44

44

44

44

UD Retail

16

41

44

48

48

48

UNY

176

150

147

143

143

143

143

Lilac

4

4

0 *7

0

0

25

25

25

99 Ichiba

73

0*5

0

0

0

0*5

0

0

0

Doito

15

0*6

0

0

0

15

0*6

0

0

0

Daishin /Tachibana Dept.
Store

1

2

2

2

2

2

3

3

2

2

Domestic total

651

580

579

583

583

42

49

49

50

54

DQUSA

4

4

4

4

4

MARUKAI

10

10

10

10

10

QSI

24

24

24

24

24

PPRM (SG)

3

7

7

7

8

PPRM (HK)

-

2

2

3

6

DONKI Thailand *４

1

2

2

2

2

Overseas total

42

49

49

50

54

Total

693

629

628

633

637

1Q

2Q

3Q

225

225

228

227

Don Quijote

322

44

44

44

45

45

Nagasakiya

New MEGA

88

91

91

92

93

MEGA Don Quijote UNY

16

41

44

48

176

150

147

Picasso * 3

2526Mini Piago

73

Doito

APITA/Piago * 2

Nagasakiya/Dept. store
Overseas * 4

DON DON DONKI

DON DON DONKIJONETZ by DON DON DONKI
Lot10 (Malaysia)

Ximen (Taiwan)Jan

FY2021Mar* 1. Business format conversion stores operated by Nagasakiya are all included in “MEGA”.
* 2. “Apita/Piago” includes “U store”, “Power Piago” format.
* 3. “Picasso” includes Picasso, Essence, Kyoyasudo, Ekidonki, Soradonki, and Jonetsu Shokunin.
* 4. As the fiscal year ends in March for overseas corporations, the number of stores for each quarter isadjusted for the applicable fiscal year.

* 5. Number of stores has been reduced by 73 as of April 1, 2020 due to transfer of shares.
* 6. Number of stores has been reduced by 15 as of February 1, 2020 due to transfer of business.
* 7. Number of stores has been reduced by 4 as of July 1, 2020 due to absorption and merger with Don Quijote.

32

Overview of results for listed subsidiaries▶ Japan Asset Marketing (8922)(Unit: Millions of yen)

(Unit: Millions of yen)Previous fiscal year

Profit statement

Current fiscal year

April 1, 2019~March 31, 2020

ActualShare

April 1, 2020~March 31, 2021

ActualActualShare

YoY

22,427100.0%

98.9%

9,402

(1,960)Non-current assets

158,539

154,710(3,829)Total assets

169,902

164,112(5,790)Current liabilities

14,817

9,384(5,433)

95.4%

Non-current
liabilities

47,022

41,238(5,784)

35.5%

97.5%

Total liabilities

61,83950,622(11,217)

24.2%

88.9%

Total net assets

108,062

113,490

5,428

9,365

41.3%

8,936

39.8%

95.4%

SG&A

998

4.4%

953

4.2%

95.5%

Operating profit

8,366

36.9%

7,982

35.6%

Recurring profit

8,167

36.0%

7,959

Profit attributableto owners of parent

6,108

26.9%

5,427

Sales and operating profit

Changes in number of properties owned(Millions of yen)
6,000

5,500

Change11,362100.0%

Gross profit

ActualCurrent assets

22,665

Sales

March, 2021

March, 2020

Balance sheet(Millions of yen)
Sales (left axis)
OP (right axis)

2,400

130

2,200

120

2,000

5,000

(No. of properties)

110

1,800
4,500

4,000

1,600
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Mar 2018

Mar 2019

Mar 2020

Mar 2021

1,400

100
90

1Q

2Q

3Q

Mar 2018

4Q

1Q

2Q

3Q

Mar 2019

4Q

1Q

2Q

3Q

Mar 2020

4Q

1Q

2Q

3Q

4Q

Mar 2021

33

IR information
IR inquiries
Pan Pacific International Holdings Corporation, IR Department
2-19-10 Aobadai, Meguro-ku, Tokyo, 153-0042
TEL: 03-5725-7588 FAX: 03-5725-7024
e-mail : ir@ppih.co.jp

IR calendar
Announcement of results for the fiscal year ending June 2021 (Scheduled)
Date of announcement: August 17, 2021 (Tuesday)
Venue: TBD

Cautionary information regarding forward-looking statements
The purpose of these materials is solely to provide information to investors, and not for the solicitation of purchases and sales. The forward-looking
statements set out in these materials are based on targets and forecasts, and do not provide any commitments or guarantees. While forward-looking
statements are prepared based on various data that we consider to be reliable, we do not provide any guarantees on their accuracy or safety. Thesematerials are presented based on the premise that they will be used at discretion and responsibility of the investor, regardless of the purposes thatthey use these materials for, and Pan Pacific International Holdings Corporation bears no responsibility in any circumstances.

34

2-19-10 Aobadai, Meguro-ku, Tokyo, 153-0042
TEL: 03-5725-7588 / FAX: 03-5725-7024 / e-mail: ir@ppih.co.jp
https://ppih.co.jp/