Summary Report of Consolidated Financial Results
For the Six Months Ended December 31, 2019

(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:
Mitsuo Takahashi, Senior Managing Executive Officer and CFO (Phone: +81-3-5725-7588)
URL:
https://ppi-hd.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 2020 (From July 1, 2019 toDecember, 31, 2019)(1) Results of Business Operations(Millions of yen, except per-share data)
Operating
Ordinary
Net Sales
Change (%)
Change (%)
Change (%)
IncomeIncomeSix Months Ended
858,789
67.3
45,11350.3
45,55528.9
December 31, 2019
Six Months Ended
513,41610.9
30,017
2.6
35,33013.8
December 31, 2018
(Note) Comprehensive income: 27,977 million yen [3.3%] (FY 2020.6 2Q), 27,090 million yen [29.9%] (FY 2019.6 2Q)
ProfitAttributable toOwners of Parent

Change (%)

Net Income
Per Share(Yen)Net Income Per
Share-fullydiluted (Yen)Six Months Ended
28,890
22.3
45.61
45.48
December 31, 2019
Six Months Ended
23,616
26.4
37.32
37.22
December 31, 2018
(Note) On September 1, 2019, we conducted a 4-for-1 common share split. Net Income Per Share and Net Income Per
Share-fully diluted have been calculated on the presumption that the share split was conducted at the beginning of
the previous fiscal year.
(2) Financial Position(Millions of yen, except per-share data)
Total Assets

Net assets

Ratio of Shareholders’Equityto Total Assets (%)

As of December 31,
1,328,172
375,278
26.5
2019
June 30, 2019
1,282,100
352,300
25.6(Reference) Equity: 351,584 million yen (as of December 31, 2019), 328,359 million yen (as of June 30, 2019)(Note) For the second quarter of the fiscal year ended June 30, 2020, provisional accounting treatments for businessintegrations was finalized. As a result, the figures for the fiscal year ended June 30, 2019 reflect the finalization ofthe provisional accounting treatments.
2. Dividends

Year Ended June 30,
2019Year Ending June 30,
2020
Year Ending June 30,
2020 (Forecast)Three Months Ended
September 30

Six Months EndedDecember 31

－

10.00

－

3.00

Yen
Nine Months
Ended March 31

Year Ended June30

Total－

30.00

40.00

－

8.50

11.50

(Note) Revision to the dividend forecast in the second quarter of fiscal 2020: Yes(Note) On September 1, 2019, we conducted a 4-for-1 common share split. For the fiscal year ended June 30, 2019, theactual amount of dividends before the said share split is presented.

13. Consolidated Business Forecast：For the year ending June 30, 2020 (From July 1, 2019 to June 30, 2020)(Millions of yen, except per-share data)
Net
Sales

Change(%)

Operating
IncomeChange(%)

Ordinary
IncomeChange(%)

ProfitAttributable toOwners ofParent

Change(%)

Net Incomeper Share(Yen)Year Ending
1,670,000
25.7
72,00014.1
72,0005.5
46,000△2.3
June 30, 2020(Note) Revision to the business forecast in the second quarter of fiscal 2020: Yes(Note) The Company finalized provisional accounting treatments for business integrations, which is reflected in therelevant figures for the fiscal year ended June 2019.
(Note) On September 1, 2019, we conducted a 4-for-1 common share split. Net Income per Share in the Consolidated
Business Forecast for the fiscal year ending June 30, 2020 takes into account the impact of the share split.

72.59

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: None
② 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, 2019
633,721,440 shares
June 30, 2019
633,287,040 shares② Number of treasury share
December 31, 201918,924 shares
June 30, 201918,720 shares③ Average number of outstanding shares during the period
December 31, 2019
633,477,295 shares
December 31, 2018632,812,016 shares(Note) On September 1, 2019, we conducted a 4-for-1 common share split. Number of outstanding shares, Number oftreasury share and Average number of outstanding shares during the period have been calculated on thepresumption that the share split was conducted at the beginning of the previous fiscal year.
※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 securities analysts and institutional investors on February 5,
2020. Presentation materials for the briefing will be available on the Company’s website.

2Consolidated Quarterly Balance Sheets(Millions of yen)

AssetsCurrent assets

Cash and deposits

As of June 30,

As of December 31,

2019

2019

AmountAmount¥172,673¥188,768

Notes and accounts receivables-trade

18,74425,047

Accounts receivables - installment

67,41779,282

Operating loans

8,966

8,697

188,510200,778

Prepaid expenses

7,036

6,988

Deposits paid

12,986

15,068

Other

20,79018,700

(717)

(821)

496,405

542,507262,955

260,669

Merchandise and finished goods

Allowance for doubtful accounts
Total current assets

Non-current assetsProperty, plant and equipment
Buildings and structures, netTools, furniture and fixtures, net

25,471

27,612

Lands

318,580

317,989

7,407

8,762

614,413615,032

Goodwill

17,216

16,328Other

20,38620,093

Total intangible assets

37,60236,421

Investment securities

16,681

17,885Long-term loan receivables

2,962

1,308

Long-term prepaid expenses

6,105

6,026

Retirement benefit assets

6,362

6,791

Deferred tax assets

19,66820,131

Lease and guarantee deposits

80,44380,540

Other

3,965

4,015

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets

Total assets

3(2,506)(2,484)

133,680

134,212785,695

785,665¥1,282,100¥1,328,172

(Millions of yen)

Liabilities
Current liabilities

Notes and accounts payables - trade

As of June 30,

As of December 31,

2019

2019

AmountAmount¥159,064¥187,715

123－

Current portion of long-term loan payables

19,721

12,493Current portion of bonds

22,81622,316

Payables under fluidity lease receivables

7,304

6,991

Accounts payables - other

53,30358,854

Accrued expenses

22,684

16,388Deposits received

19,40724,440

Income taxes payables

9,841

12,842

Short-term loan payables

Provision for point card certificates

5,227

6,467

Other

22,284

24,684

Total current liabilities

341,774

373,190

Bond payables

238,458

237,250

Long-term loan payables

256,777

251,080

Non-current liabilities

Long-term payables under fluidity lease receivables

4,703

1,378

Asset retirement obligations

23,08323,384180

137

Negative goodwillOther

64,82566,475

Total non-current liabilities

588,026

579,704

929,800

952,894

22,67522,912

Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus

15,414

15,653Retained earnings

290,034

314,023

(14)

(14)

328,109352,574

173

894

Foreign currency translation adjustment554(1,430)Remeasurements of defined benefit plans

(477)

(454)

Total accumulated other comprehensive income

250(990)

724

219

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Share acquisition rights
Non-controlling interests

23,21723,475

Total net assets

352,300

375,278¥1,282,100¥1,328,172

Total liabilities and net assets

4Consolidated Quarterly Statements of Income

Net sales

Six months ended
December 31, 2018

(Millions of yen)Six months ended
December 31, 2019

AmountAmount¥513,416¥858,789

377,805

610,996

135,611247,793

105,594

202,680

30,017

45,113

Interest and dividend income

994

320

Amortization of negative goodwill

4343

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

Share of profit of entities accounted for using equity method

5,728

167

Other

1,893

2,673

Total non-operating income

8,658

3,203

Interest expenses paid on loans and bonds

1,760

2,543

Bond issuance cost

1,126

－

151

94

Non-operating expenses

Cost of claim's liquidation
Other

308

124

3,345

2,761

35,33045,555

465

103－

268

Gain on reversal of share acquisition rights

0220

Other－

421

465

1,012

Impairment loss

417

1,533

Loss on retirement of non-current assets

362,442

Loss on closing of stores

75323

Loss on disaster

307

151

9143

844

4,592

Profit before income taxes

34,951

41,975

Income taxes - current

9,500

10,671

Income taxes - deferred

901

2,145

10,401

12,81624,55029,159934

269¥23,616¥28,890

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on reversal of provision for loss on store closings

Total extraordinary income
Extraordinary losses

Other
Total extraordinary losses

Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated Quarterly Statements of Comprehensive Income

Profit(Millions of yen)Six months ended

Six months ended

December 31, 2018

December 31, 2019

AmountAmount¥24,550¥29,159

Valuation difference on available-for-sale securities

(133)

719

Foreign currency translation adjustment

2,679(1,928)－24(6)

3

2,540(1,182)Comprehensive income¥27,090¥27,977

Comprehensive income attributable toComprehensive income attributable to owners of parent¥26,156¥27,651

934

326

Other comprehensive income

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 attributable
to non-controlling interests

6Consolidated Quarterly Statements of Cash Flows

Cash flows from operating activities:
Profit before income taxes
Depreciation and amortization
Impairment loss
Amortization of negative goodwill
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses paid on loans and bonds
Share of profit of entities accounted for using equity method
Loss (gain) on sales and retirement of property, plant and equipment
Increase in notes and accounts receivables - trade
Increase in inventories
Increase in notes and accounts payables - trade
Increase in accounts receivables - installment
Decrease (increase) in prepaid expenses
Increase in accounts payables - other
Increase (decrease) in deposits received
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refund
Payments for loss on disaster
Proceeds from dividend income received from entities accounted forusing equity method
Net cash provided by operating activities

Six months ended
December 31, 2018
Amount(Millions of yen)Six months ended
December 31, 2019
Amount¥34,951
9,226
417
(43)
193
(994)
1,760
(5,728)(429)(3,180)(16,982)
26,242
－
(955)
557
(48)
(978)
44,009856(1,595)(11,331)
1,515
(216)

¥41,975
14,1491,533(43)(4,612)
(320)
2,543
(166)
2,452
(6,400)(12,306)
28,618(11,866)
184
5,213
5,033
(206)
65,781110(2,483)(9,222)
4,875
(169)

－78

33,23858,970Cash 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
Payments for leasehold and guarantee deposits
Proceeds from collection of leasehold and guarantee deposits
Payments for store opening in progress
Proceeds from collection of loan receivables
Other, net
Net cash used in investing activities(24,805)
1,126
(754)
(3,404)
247
(731)
3,836
4(24,481)(15,310)389(2,043)(2,368)876(500)
17(243)(19,182)

Cash flows from financing activities:
Net decrease in short-term loan payables
Proceeds from long-term loan payables－65,000(123)－

Repayments of long-term loan payables
Proceeds from issuance of bonds
Redemption of bonds
Repayments of payables under fluidity lease receivables
Proceeds from issuance of common shares
Cash dividends paid
Cash dividends paid to non-controlling interests
Payments for purchase of shares of subsidiaries
that do not result in change in scope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated subsidiaries
7

Cash and cash equivalents at end of period(3,672)
138,784(1,908)(3,890)247(4,271)(808)(12,925)－(1,708)(3,722)
188(4,750)－(4,322)－(93)
185,067864
194,688
75,883
4¥270,575(31)(23,071)313
17,030185,136
1,163¥203,329

Segment Information

For the second quarter ended December 31, 2019
1. Information concerning sales and income by reporting segment(Millions of yen)

Sales, Segment income
Sales

DiscountStorebusiness

Reporting segment
GMS
business

Rentbusiness

Sub Total

Others(Note 1)

Total

Adjustment Consolidated(Note 2)
(Note 3)

Sales to third parties

560,953

260,564

29,705851,2227,567

858,789－

858,789

Intersegment sales

2,847

2,179

2,037

7,063

3,373

10,436(10,436)－

Total

563,800

262,743

31,742858,285

10,940869,225(10,436)

858,789

Segment income

28,11010,005

6,741

44,8564344,899

214

45,113Notes
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 ¥214 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
UNY Co., Ltd. became a wholly owned subsidiary of the Company since we acquired additional shares on January 4,
2019. Therefore, we added a business segment and revised the classification method, in the previous third quarter endedMarch 31, 2019. The two Reporting segments “Retail business” and “Rent business” have been reclassified into three
Reporting segments “Discount Store business”, “GMS business” and “Rent business”.
In addition, Japan Asset Marketing Co., Ltd., which was formerly included in the “Rent business”, and Realit Co., Ltd.,
which was formerly included in the “Others” were reclassified into the “Discount Store business” since the nature of thebusiness has been related to “Discount Store business”.
Segment information for the second quarter ended December 31, 2018 is presented after reclassification thatincorporates this reclassifications.
3. Information concerning impairment loss of fixed assets or goodwill by reporting segment
Impairment losses on store facilities and land were recorded in the Discount Store business segment, Rent businesssegment and corporate assets not allocated to reportable segments. Impairment losses of ¥894 million in the DiscountStore business segment, ¥27 million in the Rent business segment and ¥612 million in the corporate assets not allocatedto reportable segments were recorded for the second quarter ended December 31, 2019.

For the second quarter ended December 31, 2018
1. Information concerning sales and income by reporting segment(Millions of yen)
Reporting segment

DiscountStorebusiness

GMS
businessRentbusiness

Sub Total¥503,343¥－¥9,393¥512,736

1,461－

949

2,410

Total

504,804－

10,342515,146

Segment income¥29,494¥－¥1,375¥30,869

Sales, Segment income
Sales
Sales to third parties
Intersegment sales

Others(Note 1)

Total

Adjustment Consolidated(Note 2)
(Note 3)¥680 ¥513,416¥－¥513,416－

2,410(2,410)－680

515,826(2,410)513,416¥ (870) ¥29,999¥18¥30,017

Notes
1. “Others” includes the service related to the operation of the Company (Holdings Company) and so on, which does notbelong to the Reporting segment.
8

2. The ¥ 18 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(Significant impairment losses on non-current assets)
Impairment losses on store facilities were recorded in the Retail business segment and Rent business segment. Impairment losses of¥276 million in the Retail business segment and ¥141 million in the Rent business segment were recorded for the second quarter
ended December 31, 2018.

(Significant changes in goodwill)
Not applicable(Significant gain on negative goodwill)
Not applicable9