Q3 Results for FY 2024
May 13, 2024
Pan Pacific International Holdings Corporation

Contents
１ Overview of Q3 results
2

Appendix

Explanatory notes to this document

1. The values presented in this document are rounded to the nearest full unit.

2. The following abbreviations are used in this document: Pan Pacific International Holdings Corporation (7532) is abbreviated 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,” Hong Kong as “HK,” Thailand as “TH,” Taiwan as “TW,” Malaysia as “MY,” Macau as “MO,” and Group as“GP.”

3. PPIH applies the provisions of the “Regulation on Terminology, Forms and Preparation Methods of Consolidated Financial Statements,” but there are sections inthis document where account titles and other information have been simplified to the extent that such act does not change the intent or meaning of the information.

4. The exchange rates used for overseas operations are shown below. (Gelson’s fiscal year ends in June, so it uses different exchange rates. )Unit: YenFY2023
FY2024

USD

P/L

U.S. dollar

136.85143.79USD

B/S

132.70141.82

P/L(Gelson’s)

137.58147.21

SGD

B/S

133.54151.40Singapore dollar

P/L

98.61

106.91

B/S

98.76

107.47

THB

P/L

Thai baht

3.82
4.10

HKD

B/S

3.82
4.13

*Exchange Rates
P/L uses the average exchange rate for the reporting period (Gelson’s is from July 2023 to March 2024 , others are from April 2023 to December 2023).
B/S are based on the exchange rate at the end of March 2024 for Gelson’s and at the end of December 2023 for all other companies.

Hong Kong dollar

P/L

17.46
18.37

B/S

17.02
18.14

TWD

Taiwan dollar

P/L

4.50
4.59

B/S

4.33
4.62

1

Overview of Q3 results2

Earnings summary for FY2024 Q3
Record high sales and profits were achieved both in Q3 and Q1–Q3.
Operating income for Q1–Q3 was 110.3 billion yen, surpassing the previous 12-month operating income of 105.3 billion yen in 9 months.
Domestic retail sales continued to drive the overall performance, driven by the success of the tax-free sales, and PB and OEM strategy.

[Period: July 1, 2023–March 31, 2024]

FY2023

Net sales
Gross profit
SG&A
OperatingincomeOrdinary
incomeProfitattributable toowners ofparentEPS(yen/share)(Unit: Billion yen, unless otherwise indicated)

Q3 Results

FY2024

YoY Change

FY2023

Amount(Sales ratio)

Amount(Sales ratio)

478.8

519.8

(30.9%)(31.3%)(25.9%)(24.6%)(5.1%)(6.7%)(4.9%)(7.7%)+16.5(3.1%)

23.9(4.6%)+9.2＋62.2%

24.66

39.99

+15.33＋62.2％

148.1
123.8
24.3
23.5
14.7

162.7
127.9
34.8
40.0

Amount

+41.0

+14.6
+4.1

+10.5

%

+8.6%

+9.9%

+3.3%

＋43.3%＋70.4%*1
Amount(Sales ratio)

Q1–Q3 Results
Amount(Sales ratio)

1,457.2

1,567.4(30.9%)(31.5%)(25.3%)(24.5%)(5.6%)(7.0%)

450.5

368.8
81.7

493.7
383.4

110.3

FY2024

YoY Change

Amount%+110.2

+7.6%

+14.7

+4.0%

+43.2

+9.6%

+28.6

(7.2%)+32.9＋34.9%(3.5%)

72.1(4.6%)+20.6＋40.0%

86.33

120.80+34.47＋39.9％

80.7(5.5%)

51.5

113.6

＋40.8%

3

Full-year forecasts

The operating income forecast for the full year has been revised upward to 135 billion yen (up 5 billion yen).
Strong Q3 results are reflected in the full-year forecast.

In addition to the revision of operating income, we have revised up its recurring profit and net income, taking into
account the foreign exchange situation.
FY2023(Unit: Billion yen, unlessotherwise indicated)

Amount(Sales Ratio)

Full-year Forecast(announced at Q2)

Amount(Sales Ratio)

Net sales

1,936.8

2,070.0

Gross profit

600.4

653.0

SG&A
Operating income
Ordinary income
Net income
EPS (yen/share)(31.0%)

495.1(25.6%)

105.3(5.4%)

111.0(5.7%)

66.2(31.5%)

523.0(25.3%)

130.0(6.3%)

126.0(6.1%)

76.5(3.4%)(3.7%)

110.94128.19Percentage
Change(YoY)

Full-year Forecast (revised)
Amount(Sales Ratio)+6.9%

2,086.0+8.8%(31.5%)+5.6%(25.1%)+23.5%(6.5%)+13.5%(6.7%)+15.6%(3.8%)+15.5%

134.06

658.0

523.0

135.0
139.0

80.0

Change(from the forecast)

Percentage
Change（YoY）

Percentage
Change(from the forecast)

+16.0

+7.7%

+0.8%

+5.0

+9.6%

+0.8%

-

+5.6%

-

+5.0

+28.2%

+3.8%

+13.0

+25.2%+10.3%+3.5+20.9%

+4.6%

+5.87

+20.8%+4.6%<Exchange Rates> * USD changed from 138.09 yen in the initial forecast to 153.00 yen.

1 USD = 153.00 yen, 1 HKD = 17.64 yen, 1 SGD = 103.35 yen, 1 THB = 4.09 yen, 1 MYR = 31.73 yen, 1 TWD = 4.62 yen, 1 MOP = 17.21 yen

4Discount store (DS) business

For Q1–Q3 FY2024, continued growth of the existing stores contributed to
the results, which marked net sales of 984.6 billion yen (up 106.7 billion
yen YoY) and operating income of 65.7 billion yen (up 23.3 billion yen
YoY).
 Existing store sales landed at 110.5% of the previous Q1–Q3 level.

Q1–Q3 FY2024 Change in Net Sales<Billion yen>

 Sales continued to be strong thanks to growth in tax-free sales (existing
stores up 7.0 pts) as well as non tax-free sales (up 3.5 pts) .

0

Q3
FY2023

Existing
StoresNew Stores

Head Office
Expenses& Adjustments

Q3
FY2024

 The number of majica members exceeded 14.1 million. Majica member
sales grew to 109.4% of the previous Q3 level. The number of users ofthe majica app service increased (from 42.8% to 45.0% of total member
sales) due to “Maji-kakaku (serious price),” and other member-oriented
initiatives. The number of existing store member customers increased to106.4%, showing increased support for the majica service. Membership
growth contributed to sales figures.

 Existing store gross profit margin improved to 27.2% (up 0.8 pts YoY).

 Sales composition ratio of PB and OEM accounted for 18.8% (up 1.9 pts
YoY). In addition to the sales growth, growth in non-food categories
such as products for going-out demand and character products
contributed to the improvement of gross profit margin.

Q1–Q3 FY2024 Change in Operating Income<Billion yen> Continued growth investments in new stores and human resources were
controlled within budget. SG&A to sales ratio for Q1–Q3 was down by 1.0
pts YoY due to sales growth and a decrease in utilities costs.

▶ Gross profit margin at existing stores FY2022–FY2024*Before reflecting expected losses

28.0%

0

26.0%
Q3
FY2023

Existing
StoresNew Stores

Head Office
Expenses& Adjustments

Q3
FY2024

24.0%
22.0%

Q1

FY2022Q2

FY2023Q3
FY2024Q45

Discount store business: “hobo-shin (a “near-new” format)” “Hobo-shin,” a “near-new” type store format, which has the same appearance as MEGA Don Quijote on the outside but has beensignificantly updated on the inside, was launched as the newly opened MEGA Don Quijote Narimasu store.


Fresh food in the DS business has evolved owing to the effect of MD integration with the GMS business and the experience gained through UD
Retail business. It has grown to the point where it has become a customer attracting device, thanks to its freshness, high quality, and priceadvantage over competitors.
Customer targets were set by floor, and by placing fresh food, the customer-attracting device, on the second floor, a flow line was establishedthat led from the first to the second floor and attracting customers to the third and fourth floors. The non-food product composition ratio andgross profit margin remained at high level among MEGA stores. Succeeded in expanding the customer base from young adults to seniors.
We will make this a model new store format for rail-side stores, which will be a place where wide range of age groups can enjoy even withmulti-story buildings, and strengthen store opening strategy.
MEGA Don Quijote(openings mainly as a roadside store)

CustomerTarget・The customer base consists mainly ofhomemakers and new families.

Floor layout

・Optimized for roadside store openings(basically two floors; a low-rise building).
・Fresh produce and food products, themain product mix, are located on the firstfloor or the basement.

“Hobo-shin”（openings in large multi-story rail-side stores）

・Target customers include not only homemakers and new families, but also
students and office workers on their way home from work.

・Each floor has its own concept, covering the needs of a wide range of age
groups.
・1st floor: drugstore, confectionery, liquor, and consumables
・2nd floor: fresh food not only secures the flow line from the 1st floor to the 2nd
floor, but also contributes to leading customers to the upper floors
・3rd floor: strengthen downtown-style trend items targeting Generation Z
・4th floor: home appliances and toys for the new family demographic

Initiatives to strengthen fresh food

Meat
Fruits andvegetables
Ready made food・Jointly use GMS meat centers to ensure stable procurement of frequent products such as
chicken and pork.
・Strengthened in-store processing to provide high-value-added products such as Wagyu beefbarbecue sets and a wide variety of prepared meat dishes.
・Increased joint purchasing with GMS and direct purchasing from producers to provide highly
fresh products.
・Kanemi Foods, which makes prepared foods and boxed lunches, will be a tenant shop thatoffers a variety of colorful prepared foods at reasonable prices.

High freshness
High Quality

Price Advantage

Become the “customer
attraction device”

6Discount store (DS) business: number one tourist destination

 Q1–Q3 tax-free sales totaled 81.3 billion yen (up 60.3 billion yen YoY), exceeding the annual tax-free sales of 68.4 billion yen
marked before Covid-19 pandemic.
 Although the nationalities of people visiting stores have changed compared to the pre-Covid period,
we have expanded our market share ratio by demonstrating our ability to respond to change increating stores that meet the needs of people from diverse countries and regions.
 The percentage of customers from China declined, but efforts to strengthen SNS sales
promotions and infrastructure support led to an increase in customers from many countries andregions, including South Korea, Taiwan, and the U.S., resulting in a tax-free sales growth.

 In addition to our strength in one-stop product portfolio, we are keeping up with various
information, including popular products and country-specific trends, and immediately reflect thisinformation to create stores that meet customer needs.

▶ Tax-free sales by nationality
FY2019 Q1–Q4
6.1%

17.3%

22.5%

40.5%
S.Korea
China
Other

13.6%
TaiwanASEAN
USA

FY2024 Q1–Q3

9.6%

5.5%

18.3%
18.4%

30.2%
18.0%

 Aiming to make “Donki = the No. 1 place to visit in Japan,” we will create stores capable of growing even in the face of changes in theexternal climate, such as the appreciation of yen. Strategies for before, during and after the trip are:
 Before the trip Strengthen marketing strategies to motivate store visits.

 More than 70% *of tax-free customers who visited our stores learned about us through SNS prior totheir visit to Japan. Therefore, we will strengthen promotions in collaboration with influencers andtravel agencies.

 During the trip Differentiate ourselves with original products that can be purchased only at ourstores.

Bake Creamy Cheese▶
No.
1selling
product in PB/OEM in terms of In addition to the established low-price appeal, develop products that meet nationality-specifictax-free sales
trends. This will result in PB and OEM products that meet the needs of tax-free customers and give
us superiority over our competitors. Also create an environment that makes customers want to Surprisingly, the No. 1 selling product was "Bake,"ahead of "Matcha" and "Sakura.”come to the store again the next time they visit Japan by introducing seasonal, limited-time-only Bake has become a popular product in Thailand,
products and goods featuring characters popular in overseas markets.
Taiwan, and South Korea, thanks to its recognition

 After the trip Plan campaigns to encourage customers who have visited our stores to recommend us
to their friends and acquaintances after they return home.
*Based on a survey conducted by PPIH

n=1,450

through word-of-mouth on SNS, saying it "does not
melt easily even in hot countries," "has a new texture,"and "has a rich cheese flavor.”
 We will continue to strengthen the development oforiginal products that meet the demand and pursue
differentiation from our competitors.

7

GMS business
Q3 FY2024 Change in Net Sales

Achieved record-high operating income of 27.2 billion yen (up 6.6 billion
yen YoY) for Q1–Q3 FY2024. Operating profit margin was 7.8% (up 1.9 pts
YoY ), boasting a high profit margin compared to other GMS.

<Billion yen> Existing store achieved 100.7% of the previous Q1–Q3 level.

 Customer numbers of existing stores in Q3 were 100.9% YoY due tothe success of various sales promotion measures including pricepromotions for daily-delivery products conducted as a prelude to a
price voting event starting from April.

 Existing store gross profit margin was 27.1% (up 0.5 pts YoY).

 The sales composition ratio of PB and OEM grew to 25.4% (up 5.2 pts
YoY), contributing to improved gross profit margin.

0

Q3
FY2023

Existing
StoresRemodelling&
Store Closing

Head Office
Expenses& Adjustments

Q3
FY2024Q3 FY2024 Change in Operating Income

 Conducted inventory strategy that incorporates DS business methods
for winter seasonal products. Although there was a one-time factor of
down 0.3 pts YoY deterioration in Q3, excluding this effect, sales
exceeded the previous year's level.

 SG&A expenses largely down 4.8 billion yen YoY (SG&A to sales ratio:
down 1.3 pts). SG&A expenses continued to be controlled by reducing
utilities costs through government subsidies and by optimally allocating
human resources.

<Billion yen>

▶ GMS business: PB and OEM ratio
28.0%
24.0%
20.0%
16.0%

0

Q3
FY2023

Existing
StoresRemodelling&
Store Closing

Head Office
Expenses& Adjustments

Q3
FY2024

12.0%

Q1

Q2

FY2023Q3

FY2024Q4

8

GMS business: price voting

 We now have the earning power. The challenge is the number of customers.

 By integrating the head offices and adopting individual store management approach,the earnings structure has improved to a 7.8% operating profit margin in the latest Q1–
Q3 period.

 Improved the high-cost structure of the traditional GMS format by controlling SG&A
expenses through integration of headquarter functions and productivity
improvements.
Synergies from DS commercial distribution and strengthened PB and OEM led toincrease in gross profit.

 While profitability improved as the Company refrained from excessive price cutting amid
price hikes, due to the delay in measures to deal with customer defection, customer
numbers continued to struggle until January 2024.
 In addition to the traditional sales promotion plans, price voting was carried out inorder to promote price superiority in addition to quality and freshness to compete
extensively with the competition.

FY2019
Q1–Q4

FY2024
Q1–Q3

ChangeOperating
Income21.7 bilyen

27.2 bilyen+5.5 bilyen

OperatingMargin

3.3％

7.8％

+4.5％

Number ofstores

183

131

(52)

 Continue to strengthen the development of PB and OEM and increase theircomposition ratio to expand sales while maintaining profitability.

 Price voting promotion: Meeting the customers' needs not only in quality and freshness, but also in prices.
 Announced a unique price cut that is unique to UNY. Employees, who are both employees andcustomers in the community, voted on the products and prices they "really want to see reduced," to“change the prices by everyone's voice" in different trading areas.
 The promotion was rolled out with the aim of offering the lowest prices in the region for up to 300
items.
 The pricing strategy reflects the competition and popular products in each trading area to realize
130 different prices for 130 stores, making our stores the most convenient for customers.
 Voting was conducted once every three months. Products with low growth rates will be replaced
every month to renew products that were subject to the promotion.

9

Overseas businessQ1–Q3 FY2024 Change in Net Sales

No major change in trend from the first half of the year, but we arestarting to see signs of improvement in both North America and Asia.

<Billion yen>

■Asia Business Compared to the full-year forecast revised in Q2, operating profit
trended upward.

 Gross profit margin is on an improving trend, with Q1–Q3 marking
37.4% (up 0.5 pts YoY) due to an increase in the sales composition of
PB and OEM as well as directly traded products.
0

Q3
FY2023

Asia

North
AmericaQ3
FY2024

Q1–Q3 FY2024 Change in Operating Income

 Despite personnel cost control at existing stores and integration ofhead office functions, SG&A to sales ratio was 36.8% (up 2.9 pts YoY)
due to the impact of investment costs for the nine new stores.

■North America Business Delicatessen, sushi, and meat products, which are categories that are
being strengthened, continued to perform well. Differentiation
through development of original products and periodic productchange were favored by customers.

<Billion yen>

 Gross profit margin was 37.3% (up 0.3 pts YoY), thanks to growth inhigh gross profit margin products such as delicatessen and sushi.

0

Q3
FY2023

Asia

North
AmericaQ3
FY2024

 Store personnel expenses were properly managed and were lower
than the previous year, but SG&A to sales ratio landed at 34.9% (up1.5 pts YoY) due to increased growth investments such as costs for
new stores and central kitchens.

*1. Figures for North America are the simple aggregate of DQ USA, MARUKAI, QSI and Gelson’s. Results are for the period from April to December 2023, while Gelson’s is from July 2023 to March 2024.
*2. Figures for Asia are the simple aggregate of PPRM (SG), PPRM (HK), DONKI Thailand, PPRM (TW), PPRM (MY), and Macau PRRM (MO). Results are cumulative for the period from April to December 2023.
*3. Gelson’s operating income is calculated after deducting amortization of goodwill (FY2024: 2.7 billion yen; FY2023: 2.6 billion yen).

10

North America business: first store opening in Guam

 Opened the first DON DON DONKI shop format, "VILLAGE OF DONKI (Guam)," in North America as a single store that will bringsignificant value to the North American business (equivalent to 10 new stores).
 Leveraging our unique product supply network, the store will offer high quality products and lead in price setting.
 Established a new value chain in Guam

 Established a procurement network to source products from Japan. Shorter transportation
days and the fact that many products are tariff-free enabled us to reduce purchase prices andimprove freshness.
 Products purchased from the U.S. mainland are shipped directly from our warehouse in
California to reduce intermediate margins and lower costs.

 By taking advantage of economies of scale in our North American operations, we were able toreduce procurement costs, which enabled us to secure high profit margin while maintaining
price advantage over our competitors.

Products purchased from Japan have an advantage in terms of freshness. We
ensure price advantage over competitors while maintaining high quality.

 Differentiation from competitors through unique products realized high gross profit margins.
Successful cases will be deployed horizontally.
 Non-food merchandise such as Japanese cosmetics and character goods, which have highgross profit margins and are rarely handled by other companies, drove gross profit margin
expansion. We will spread the highly successful products from Guam to other regions, taking
into consideration local tastes and trends.

 Fresh food products, which are offered in a way not available locally and processed in a
Japanese style, have gained popularity and high profit margins due to their unprecedented
taste and product value.

Products from the U.S. mainland are purchased by taking advantage of
economies of scale to achieve both price advantage and high profit margins.

• Poke has become a big hit due to the adoption of the method of serving cold ingredients
and warm rice separately, which greatly improves the taste of the dish. It was reimported to
Hawaii, the home of poke.
• Wagyu beef is differentiated from local products that are price-competitive by developing
shabu-shabu and yakiniku using "Japan Style Cut," a processing method not used by othercompanies.

 The store will continue to take on various challenges, such as horizontal deployment of
successful cases and serving as a foothold for future DON DON DONKI stores to open in North
America.

Differentiate ourselves by offering popular cosmetics, character goods and a
new way of serving poke. Successful cases will be deployed horizontally.

11

Status of major assets, liabilities and net assets
June 2023
AmountCurrent assets
Cash and deposits
Account
receivable installment
Products

Non-current assets
Buildings, etc.
Land
Intangible assets
Lease andguarantee
deposits

Total assets<Status of major assets>
・Non current asset

551.8(Unit: Billion yen)March 2024

Amount

242.1
55.4

194.5

929.2

288.0
318.7

497.2

165.9
58.7

Change(54.6)(76.2)

Total current liabilities
Accounts payable trade

Short-term interestbaring debt *1

192.1

(2.4)

292.7

4.7

*1

1.9

Total liabilities

956.9

27.7

15.7

71.8

70.0

(1.9)

1,481.1

1,454.2(26.9)▶ Tangible fixed assets: 717.8 billion yen(up 28.6 billion yen)・ Investment related to store openings, etc.:
54.8 billion yen
・ Depreciation: 27.4 billion yen

Amount

3.3

334.4

88.5

June 2023

90.5

Total non-current
liabilities

Corporate bonds
Long-term loans
payableNet assets

Liabilities andnet assets(Unit: Billion yen)March 2024
AmountChange

368.4

364.4

(4.1)

45.3

19.1

(26.2)

168.7

194.5

25.9

649.1

562.0

(87.1)

272.5

255.8

(16.7)

261.6

191.1

(70.6)

1,017.5

926.4(91.1)

1,481.1

1,454.2(26.9)

463.5

527.8

64.2

*1. Short-term interest-baring debt
= Short-term loans payable + Current portion of long-term loans payable + Current portion of bonds<Status of major liabilities>▶ Interest-bearing debt: 466.0 billion yen(down 113.4 billion yen)

<Status of net assets>▶ Net worth: 516.5 billion yen(up 63.2 billion yen from the previous year-end)▶ Capital adequacy ratio: 35.5%(up 4.9% from the previous year-end)<Others>▶ Net D/E ratio: 0.58x(down 0.16x from the previous year-end)▶ ROE: 19.8%(up 4.1% from the previous year-end) Subordinated bonds of 140.0 billion yen were fully redeemed prior to maturity due to improved financial soundness.
(The redemption was funded by the issuance of unsecured bonds of 70.0 billion yen and cash and deposits.)

12

Status of cash flows and capital expenditure▶ Cash Flow StatusQ3
FY 2023
AmountBalance at beginning of
period(Unit: Billion yen)

Q3
FY 2024
AmountChange

180.4

246.2

65.8

103.9

113.6

9.7

(51.0)(59.4)(8.4)(20.9)(127.7)(106.8)Changes during period

31.4(66.5)(97.9)

Balance at end of period

211.8

179.7

(32.2)

52.9

54.2

1.3

Cash flows from operating
activities
Cash flows from investing
activities

Cash flows from financing
activities

Free cash flow

*1

*1. Free cash flow = CF from operating activities + CF from investing activities

48.2

Cash out factors: 44.3 billion yen in income taxes
paid<Investing CF: down 59.4 billion yen>

▶ Cash out factors: 54.3 billion yen in acquisitionof tangible fixed assets associated with store
openings and 5.6 billion yen in acquisition of
intangible assets<Financing CF: down 127.7 billion yen>
▶ Cash in factors: 69.8 billion yen in proceeds fromissuance of bonds and 50.0 billion yen inproceeds from long-term loans payable

Cash out factors: 150.9 billion yen in redemption ofbonds, 83.0 billion yen in repayments of long-termloans payable, and 12.5 billion yen in cash
dividends paid

<Breakdown of Capex for FY2024 Q3>▶ Status of capital expenditures (Capex)
Capex<Operating CF : up 113.6 billion yen>
▶ Cash in factors: 110.2 billion yen in profit before
income taxes, 33.8 billion yen in depreciation, and24.8 billion yen in increase in notes and accounts
payable – trade

60.9

12.7

▶ DS business:
GMS business:
Overseas business:
Finance business:
Others:32.4 billion yen
8.9 billion yen
10.6 billion yen
1.9 billion yen
7.1 billion yen

13Reference: April flash report on domestic DS/GMS business In domestic retail, both the DS business and the GMS business performed well, with all productcategories increasing YoY. Customer numbers also grew, excluding the impact of holidays.
■ DS business▶ YoY comparison of existing store sales
Q1

Cum.

Unit: %

Q2

Cum.

Jan

Feb

Q3

Mar

Q4

Cum.

Apr

Japan

108.0

106.8

105.5

109.3

111.0

108.6

105.0

GMS

100.3

98.8

99.3

104.6

106.3

103.3

100.9

110.9

DS

110.0

107.9

111.0

112.8

▶ Tax-free sales of domestic DS business

110.5

106.5

April marked the highest single-month record for tax-free
results and the fourth consecutive month in which more than
10 billion yen was achieved.
12

FY2024 (vs FY2019)

10

200%

Foreign visitors (vs 2019)*

8

160%

6

120%

4

80%

2

40%

0

Jul

Aug

Sep

Oct

Nov

Dec

Jan

Feb

Mar

Apr

 Items used in indoor entertainment including analog games,
hobby-related items, and puzzles contributed to sales growth.

 As the weather continued to be sunny ahead of the season, salesof seasonal home appliances, bedding, cool-tasting foodproducts, and ice cream grew.

■ GMS business240%

FY2024

 Sales of outdoor and leisure-related items, clothing accessories,
and cosmetic accessories were strong due to increased
opportunities to go out, such as spring break and major holidays.

0% As for housing-related products, sales of daily-use commodities
such as consumables (paper products, detergents, and items foruse in the bathroom) and kitchenware grew.

 Sales of many food items, especially fruits and vegetables such as
seasonal onions, cabbage, and carrots, exceeded the previous
year's levels. Sales of processed foods and food items delivered
daily also performed well.

14

Appendix

15

Q3 results by business segment【Period: January 1, 2024–March 31, 2024】
DS business

Q3
FY2023

Sales

288.2

Gross profit ratio
OperatingincomeGross profit
SG&A

Operatingincome ratio

Q3
FY2024

Change

GMS business

Q3
FY2023

324.1

35.9

111.9

26.2％

27.0％

0.8％

12.1

20.9
6.4％

75.4
63.3

4.2％

87.5
66.6

Sales

877.9

Gross profit ratio
OperatingincomeGross profit

34.5％

34.1％

(0.4％)

8.8

6.4

8.0

2.2％

5.7％

7.0％

12.1
3.3

38.6
32.2

SG&A

Operatingincome ratio

ChangeQ3
FY2023(Cum.)

26.3％

27.2％

0.9％

42.4

65.7

6.7％

4.8％

202.0

31.0

60.4

37.5％

36.9％

(0.6％)

1.6

0.7

0.1

1.3％

3.0％

0.3％

0.3

(1.2)

8.1
7.5

8.0
7.9

Q3
FY2024

ChangeOthers / Adjustments
Q3
FY2023

63.8

3.4

(3.5)

36.7％

37.0％

0.3％

-

(0.6)

2.3

1.3

(1.0)

2.8

(2.7％)

3.8％

2.1％(1.7％)

-

(0.2)

0.4

Q3
FY2024(Cum.)

Asia businessChangeQ3
FY2023(Cum.)

(1.1)

62.0

34.1％

34.7％

0.6％

23.3

20.6

27.2

1.9％

5.9％

7.8％

13.1

Q3
FY2023

(0.1)

350.2

36.4

Change21.6

GMS business

351.3

188.9

38.9

Q3
FY2024

North America business

22.2
19.9

23.6
22.3

1.4
2.4

3.7
0.9

Q3
FY2024

Change

(3.8)

(0.4)

-

-

4.7
0.2

1.0

(0.7)

4.5

1.7

-

-

(Unit : Billion yen)

106.7

267.7

Q3
FY2023

21.7

984.6

231.3

Change2.2

DS business
Q3
FY2024(Cum.)Q3
FY2024

Asia business

114.1【Period: July 1, 2023–March 31, 2024】
Q3
FY2023(Cum.)(Unit : Billion yen)

119.8

99.2

121.6

94.4

Q3
FY2024(Cum.)

North America businessChange

61.7

(0.3)

36.9%

37.4%

0.5%

6.6

1.9

0.4

(1.5)

1.9％

3.0%

0.6%

(2.4%)

1.7

(4.8)

22.9
21.0

23.1
22.7

0.2
1.7

Q3
FY2023(Cum.)

177.4

Q3
FY2024(Cum.)

ChangeOthers / Adjustments
Q3
FY2023(Cum.)

184.9

7.5

36.9%

37.3%

0.3%

6.2

4.4

(1.9)

10.6

2.4%

(1.2%)

-

65.5
59.3

3.5%

68.9
64.5

3.4
5.2

(11.4)
10.9

-

0.3

*1. Figures for North America are the simple aggregate of DQ USA, MARUKAI, QSI and Gelson’s. Results are for the period from April to December 2023, while Gelson’s is from July 2023 to March 2024.
*2. Figures for Asia are the simple aggregate of PPRM (SG), PPRM (HK), DONKI Thailand, PPRM (TW), PPRM (MY), and Macau PRRM (MO). Results are cumulative for the period from April to December 2023.
*3. Gelson’s operating income is calculated after deducting amortization of goodwill (Q3 FY2024: 0.9 billion yen; Q3 FY2023: 0.8 billion yen; FY2024 (cum.): 2.7 billion yen; FY2023 (cum.): 2.6 billion yen).

Q3
FY2024(Cum.)

Change(14.0)

(2.6)

-

-

12.5

(0.2)

1.5

(0.5)

12.7

2.1

-

-

16

Overview of Q3 results by business on a consolidated basis[Period: July 1, 2023–March 31, 2024]

Domestic DS business

Home electrical appliances
Miscellaneous household goods
Food products
Watches and fashion merchandiseSporting goods and leisure goods

Other

Q3 FY2023 (Cum.)Amount

844.8
63.3

Ratio

58.0％
4.3％

AmountQ3 FY2024 (Cum.)
952.1
69.1

Ratio

YoY

60.7％

112.7％
113.9％

4.4％

109.2％

224.4

15.4％

255.5

16.3％

111.6

7.7％

124.3

7.9％

111.4％

1.0％

128.3％

388.1
45.4
12.1

26.6％
3.1％
0.8％

426.7
61.0
15.5

27.2％
3.9％

Domestic GMS business

319.2

21.9％

311.6

19.9％

Household goods

56.3

3.9％

49.7

3.2％

Clothing(Unit: Billion yen)

36.0

2.5％

32.7

2.1％

110.0％

134.4％
97.6％
90.9％
88.2％

Foods

224.8

15.4％

229.0

14.6％

101.9％

Overseas business

237.6

16.3％

244.9

15.6％

103.1％

Asia business

61.6

4.2％

61.5

3.9％

99.8％

2.0

Other

North America business

Other businesses
Total

*1

176.0

55.5

1,457.2*1. Other businesses include tenant leasing business and credit card business.

0.1％

12.1％

3.8％

100.0％

0.2

183.4

58.7

1,567.4

0.0％

11.7％

3.7％

100.0％

9.6％

104.2％

105.7％
107.6％

17

Breakdown of SG&A expenses【Period: January 1, 2024–March 31, 2024】

Q3 FY2023
Amount

SG&A

123.8

Rent

15.1

46.1

Salaries and allowances

Depreciation
Other【Period: July 1, 2023–March 31, 2024】

6.2%

Rent

44.3

138.4

47.0
25.4
25.8
87.9

Ratio

24.6%

15.5

3.4%

29.6

127.9

48.6

3.1%
1.8%

368.8

Other

9.6%

8.7

SG&A

UtilityAmount

9.5

1.7%

6.4

3.0%

94.9%

25.3%

Amount

383.4

9.5%

144.9

3.2%

46.7

3.0%
1.7%
1.8%
6.0%

46.3
27.7
21.8
96.0

103.0%

1.8%

108.6%

6.2%

109.6%Q3 FY2024
Ratio

103.3%

105.4%

1.2％

32.4

YoY

9.3%
3.0%

15.5

Q3 FY2023

AmountDepreciation

25.9%

8.0

Utility

Commission paid

Ratio

16.4

Commission paid

Salaries and allowances

Q3 FY2024(Unit : Billion yen)

Ratio

24.5%

80.4%

(Unit : Billion yen)

YoY

104.0%

9.2%

104.7%

3.0%

99.3%

3.0%

104.5%

1.8%

109.0%

6.1%

109.3%

1.4%

84.7%

18

FY2024 New store openings

Business

Format

Q1
Jul

Aug

Q2
Sep

Oct

Takamatsu
Marugame-Machi(Kagawa)

Discount Store
Overseas*1(Tokyo)Asia

DOMISE
Shibuya
Dogenzakadori(Tokyo)CITY LINK
Nangang(Taiwan)

DOMISE
Ario Yao(Osaka)Jun

Imizu(Toyama)Narimasu(Tokyo)Kaizuka(Osaka)Uenoshiba(Osaka)5 stores

Hikone(Shiga)GaLa Town
Aomori(Aomori)Uguisudani(Tokyo)Tsubame(Niigata)

Jan

Feb

Tanuki Koji

(Hokkaido)

FashionIsland(Thailand)

Taichung
Tiger city
(Taiwan)Tiong Bahru
Plaza(Singapore)

The MallLifestore
Bangkapi

KaoHsiung
Talee(Taiwan)Gelson’sWest LA(California)

Kagoshima
Chuo
Ichibangai(Kagoshima)

Shin-Shizuoka

Full-year Forecast

EkimaeNew store openings:

2 stores24 stores(Shizuoka)

Kirakira Donki
Yokohama
World Porters(Kanagawa)

Kirakira Donki(Thailand)

North
AmericaMay

Tsurugashima

Keikyu

Small

Apr

Dec

KamataQ4
Mar

Nov(Saitama)

DQ

Q3

Mid Valley
Megamall(Malaysia)

Studio City
(Macau)1 store(Guam)*1. Overseas stores are indicated in opening months.
*2. Applicable period for Gelson’s is from July 2023 to June 2024. Applicable period for other overseas companies is from April 2023 to March 2024.

1 storeNew store openings:
12 stores *2

19

Store network
Number of Domestic Retail Stores

Discount store business
Don Quijote

MEGA Don Quijote*1(MEGA) Don Quijote UNY

Small Format

GMS business

Domestic total*2*3

FY2022

FY202
3

468

486

140

140

237
59
32

136
604

63
33

131
617

485

250
140

63
32

131
616

FY2024
Q2

Q3

488

488

140

142

253
63
32

131
619

252

North America business
California
Hawaii

62

Asia business

131

Hong Kong

32

619

MEGA Don Quijote
Gala Town Aomori(Aomori)

DON DON DONKI
Studio City
（Macau）

Feb

250

Q1

Number of Overseas StoresMar

FY2022

FY2023

65

65

28

28

37

Macau

37

38

28

28

65
37
28

38

43

9

9

10

10

10

2

Malaysia

66

Q3

38

2

Taiwan

65

Q2

36

4

Thailand

Q1

30

12

Singapore37

FY2024

1

15

6
2
3
1

16

15

6

6

2

3

3
1

3
1

16

8
5
3
1

Overseas total

*4

95

101

103

104

108

Total

*5

699

718

719

723

727

*1.”MEGA Don Quijote” includes NEW MEGA.

*2. “Small Format” includes Picasso, Essence, Kyoyasudo, Domise, Ekidonki, Soradonki, JonetzShokunin, and Nagasakiya.
*3. “GMS business” includes Apita/Piago, U-STORE, PiagoPower, and Power Super Piagoetc.

*4. From this fiscal year, “Sen Sen Sushi” in Thailand and Hong Kong are excluded from the store count.

*5. As the fiscal year ends in March for overseas companies except Gelson’s (ends in June), the number of stores for each quarter is adjusted for the applicable fiscal year.

20

IR information
IR inquiries
IR Division, Pan Pacific International Holdings Corporation

Dogenzaka-dori 8F 2-25-12 Dogenzaka, Shibuya-ku, Tokyo 150-0043

TEL: 03-6416-0418

e-mail : ir@ppih.co.jp

FAX: 03-6416-0994

IR Calendar

Announcement of Q4 results for the fiscal year ending June 2024 (scheduled)
Date of announcement: August 16, 2024 (Friday)
Venue: TBD (We will announce as soon as it is decided.)

Cautionary information regarding forward-looking statements

The purpose of this document is solely to provide information to investors, and does not constitute a solicitation to buy or sell securities. The

forward-looking statements set out in this document 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. This document is presented based on the premise that it will be used at the discretion and responsibility of theinvestor, regardless of purpose of use, and Pan Pacific International Holdings Corporation bears no responsibility in any circumstances.

21

memo

22

Dogenzaka-dori 8F 2-25-12 Dogenzaka, Shibuya-ku, Tokyo 150-0043
TEL: 03-6416-0418 / FAX: 03-6416-0994 / e-mail: ir@ppih.co.jp
https://ppih.co.jp/