Results for FY 2022
August 12, 2022
Pan Pacific International Holdings Corporation

INDEX
１

Fiscal year ended June 30, 2022
Overview

2

Appendix1Explanatory notes for these materials
1. The actual values presented in these materials are rounded 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,” Taiwan as “TW”, Malaysia as “MY”, Macau as “MO”, Japan Asset Marketing Co., Ltd. as“JAM,” and Group as “GP.”3. PPIH applies the “Ordinance on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements,” but there aresections in these materials where the account items and other information have been simplified to an extent where they do not change theintent or meaning of the contents.

4. PPIH has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. effective from the

beginning of the fiscal year ended in June 30, 2022. As a result, comparisons with the same period of the previous fiscal year are based on
figures calculated using different standards.

5. The exchange rates used for overseas operations are shown below. (Gelson's fiscal year ends in June, so the exchange rate is different. )6. For the business integration with GRCY Holdings, Inc. that took place on April 21, 2021, provisional accounting treatment was applied in theprevious consolidated fiscal year. This was finalized in the second quarter of the consolidated fiscal year ended in June 30, 2022. Following thedetermination of this provisional accounting treatment, comparative analysis has been conducted using retroactively adjusted figures.

Unit： yen

USD
U.S. dollar

USD(Gelson’s)

SGD
Singapore dollar

THB
Thai baht

HKD
Hong Kong dollar

P/L

B/S

P/L

B/S

P/L

B/S

P/L

B/S

P/L

B/S

FY 2021105.95110.72109.80110.61

77.76

82.28

3.42

3.54

13.66

14.24

FY 2022113.06122.41118.42136.69

83.84

90.47

3.45

3.68

14.52

15.64

2

Fiscal year ended June 30, 2022
Overview

3

Financial Results for the Year Ended June 30, 2022

【Period：July 1, 2021～June 30, 2022】
FY2021*1

Amount(Adjusted)

17,086

Net sales

4,972

Gross profit

4,160

SG&A

812

Operating profit

815

Recurring profit
Net income
EPS ( yen)

*3
*2

FY2022*2

Ratio
100.0%
29.1%
24.3%
4.8%
4.8%

Amount18,313

5,434
4,547
887

1,004

(Unit: 100 Million yen)
Forecast for FY2022

Ratio

ChangeYoY

Amount

Ratio

Progress

100.0%+1,226107.2%

18,700100.0%

97.9%

29.6%

98.1%

25.1%

97.0%

4.5%

104.3%

4.4%

121.0%

29.7%
24.8%
4.8%
5.5%

+462
+387
+75

+190

109.3%
109.3%
109.2%
123.3%

*1

5,539
4,689
850
830

537

3.1%

619

3.4%

+82

115.2%

576

3.1%

107.5%

84.74-

102.64-+17.90121.1%

95.46-

107.5%*1. In the second quarter of the fiscal year ended June 30, 2022, the Company finalized the provisional accounting treatment for the business consolidation, and each figure for the fiscal year ended June30, 2021 reflects the details of the accounting treatment.
*2. PPIH has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the fiscal year ended in June 30, 2022. For thisreason, YoY comparisons are based on figures calculated using different standards. No retroactive adjustments will be made to the figures for the previous year. Compared to the case without thisaccounting standard, sales, gross profit and SG&A expenses decreased by 8.1 billion yen and gross profit margin decreased by 0.3 %.

* 3. PPIH repurchased 38,054,300 shares of treasury stock based on the resolution of the Board of Directors meeting held on September 6, 2021. Net income per share in the consolidated earnings forecast
takes into account the impact of the share buyback. Without this share buyback, actual cumulative results of net income per share would be 97.63 yen for the fiscal year ended June 30, 2022.

4

Executive Summary

1. Consolidated Business Results•

For the full year, PPIH achieved sales of 1,831.3 billion yen (+122.6 billion yen/+7.2% YoY) and operating
income of 88.7 billion yen (+7.5 billion yen/+9.2% YoY), achieving its operating income target and 33rd
consecutive year of growth in both sales and income.
•Sales growth was driven by the overseas business, up 97.4 billion yen due to the newly consolidated Gelson's and new store
openings, and the DS business, up 45.6 billion yen due to an increase in the number of stores, including business format
conversions, and a recovery in existing stores.

Operating profit recovered from a YoY decline of 7.1 billion yen in Q1 and achieved the announced target. All businesses met
their initial targets, with the DS business in particular achieving a significant increase of 13.7 billion yen YoY, driven bystrategic measures implemented at the beginning of the period, such as improving gross profit margin by strengthening
PB/OEM and improving inventory turnover ratio, which were strengthened during the period.

The results reached a record high as a Q4 result. Compared to the previous Q4, sales was +20.4 billion
yen, and operating profit was +11.3 billion yen. In particular, operating profit was boosted by further
improvement in gross profit margin.


Purchase costs are increasing, but the gross profit margin in Q4 improved significantly by 2.1% (DS business: +2.8%, GMS
business: +2.3%) from the previous Q4, backed by the improved inventory turnover ratio, which has been strengthened sinceQ3, in addition to the reinforcement of PB/OEM.

The SG&A ratio also decreased by 0.1% compared to the previous Q4. The company continued to control SG&A expenses
within budget, and efforts to curb rising utilities costs at stores were also successful.

2. Other Results••

In the financial business, the merchant store management business started in June and has alreadyrealized cost reductions of about 100 million yen.

Strengthening of ESG promotion, which started from the beginning of the fiscal year, resulted in theselection as a constituent of the FTSE Index and other achievements.

5

Cumulative Total Change in Financial Figures【Period：July 1, 2021～June 30, 2022】
Sales by Business

Operating Profit by Business<100 Million Yen>

0<100 Million Yen>

North
America

FY2021Asia

Others

FY20220

FY2021

Operating profit ratio Breakdown

FY2021*Gelson’sののれんXXX

Strengthening
PB

Change in
Revenue
Recognition

OthersNorth
America

Others FY2022

Changes from SG&A

Changes from Gross Profit Margin

0

Asia

Utility
Expenses

Change in
Revenue
Recognition

Others

FY20226

Discount Store Business
FY2022 Cumulative<100 Million Yen>

Recovered from the harsh external environment of Q1. Sales
increased by 45.6 billion yen YoY and operating profit increased by
13.7 billion yen (+61.0%) YoY, achieving a significant increase in bothsales and profit.

Change in Sales Existing store gross profit margin increased by 0.5% YoY as strategic
measures to strengthen PB/OEM and improve pricing accuracy achieved
positive results. Operating profit at existing stores also increased by 8.7
billion yen, contributing to increased profit in the DS business.
0

FY2021

Existing
Stores

FY2022 Cumulative<100 Million Yen>

NewStores(DQ)

NewStores(UDR)

Head Office
Expenses& Adjustments

FY2022

Change in Operating Profit

Especially in Q4, sales increased 1.8% over the previous Q4 due to arecovery in the flow of people during the GW holiday season andstrong sales of seasonal products due to the early end of the rainyseason.

 Inventory turnover, which had been an issue, was strengthened in Q3 andfurther improved in Q4. Inventory actual at existing stores at the end of theperiod declined significantly by 15.2 billion yen YoY.
 Sales growth was achieved by 19 new stores and 3 stores converted to newformats, as well as existing store sales increased by 1.1% YoY.


Q4 existing store sales increased 1.8% due to the lifting of the special
measures for the pandemic, and the early end of the rainy season. In
particular, sales at station-front stores recovered by 10.3%, andsales during nighttime hours recovered by 14.4%.

 SG&A expenses remained under control within budget throughout the year.

▶ Gross profit margin at existing stores
26.5%

22年6月期
FY202226.0%

粗利率前年差Grossprofit margin YoY

25.5%

0

Existing
StoresNew Stores(DQ+UDR)*DS business does not include Tachibana Departmentstore Co.,Ltd.

Head Office
Expenses& Adjustments

FY2022

24.5%

0.0%

24.0%

-1.0%

23.5%
23.0%

2.0%
1.0%

25.0%
FY2021

3.0%

7月
Jul

8月
Aug

9月 10月
Sep
Oct

11月
Nov

12月
Dec

1月
Jan

2月
Feb 3月Mar 4月Apr 5月May 6月
Jun

-2.0%

7

DS Business: Improve store attractivenessby strengthening PB/OEM and improving inventory turnover
Improvement of gross profit marginand differentiation by strengthening PB/OEM

PB/OEM sales composition increased to 14.2% of total sales(+2.1% YoY). Gross profit margin improvement was +0.49%,
exceeding the initial target of +0.4%.

In Q4, the sales composition increased to 15.6% due to thecontinued strengthening of in-store and out-store promotions
as well as the growth of PB and OEM products in the non-foodcategory. (vs. the previous Q4: sales composition ratio +2.8%,
gross profit improvement +0.7%)▼A promotion aiming to raiseawareness of PB▼Examples of PB and OEM
products that have increased
sales in non-food category▶ PB and OEM sales composition in the domestic DS business
FY2021
21年6月期

FY2022
22年6月期

16.0%
15.0%

Avg. 14.2％

14.0%



The annual turnover ratio of inventory at existing storesimproved by 0.59pt YoY (0.36pt improvement in Q3).

It also led to a reduction in write-downs at the end of theperiod, contributing to an improvement in gross profit
margin.

The improved inventory turnover ratio has enabled the company
to realize its “the customer matters most" principle byconstantly proposing new products to customers, and has also
made a significant contribution to the further strengthening of
the PB/OEM to cope with the increase in inventories.
In addition, inventory reductions have the effect of increasing
labor productivity in inventory management operations atstores. It also frees up work hours that are directly related tocustomer service and store attractiveness.

↑＋2.1％

13.0%
12.0%

Avg. 12.1％

11.0%
10.0%

Inventory turnover ratio improved even further from Q3 due toprogress unit control through DX. Inventory at the end of theperiod was decreased by 15.2 billion yen YoY, a further reduction
from 10.2 billion yen YoY in Q3, due to "interest expiration date"management, automatic ordering based on demand forecast,and SKU narrowing, etc.



＜Example＞• Cosmetics（+95.3％）(+2.6 bil. Yen)
• Bicycle（+75.0％）(+0.59 bil. Yen)
• Toys （+68.4％）(+0.96 bil. Yen)

17.0%

Enhancing store attractivenessby improving inventory turnover through DX

7月
Jul

8月
Aug

9月
Sep

10月 Nov
11月
Oct

12月
Dec

1月
Jan

2月
Feb

3月
Mar

4月
Apr

5月
May

6月
Jun

8

GMS BusinessDespite a difficult Q1-Q2 period due to the external environment,
the company recovered in the Q3 and Q4 by improving gross profit
margin. Full-year operating profit exceeded the initial target.

FY2022 Cumulative Change in Sales<100 Million Yen>0

FY2021

Existing
StoresClosedStores etc.

Head Office
Expenses& Adjustments

FY2022

FY2022 Cumulative Change in Operating Profit<100 Million Yen>

Evolution to individual store management and integration of
departments are still in process . Profit generation through higher grossprofit margins and cost efficiencies will be further focused from the next
fiscal year onward.
 Sales declined by 20 billion yen (-1.1% YoY at existing stores) due to aconversion to UDR and a reactionary decline in demand foralternative to eating out.
 The effect of the conversion is +10.3 billion yen, net and anincrease in sales on the DS side.
 Conversion to UDR was carried out at 7 stores for the full year. Only
one store was remaining with the initial plan, but 3 more stores areadded to the list.
 Gross profit margin at existing stores was lower than the previous
year in Q1 and Q2, but improved in each quarter. In particular, in Q4,
seasonal merchandise, a high gross margin category grew, resulting
in a significant improvement of 1.7%, contributing to meet the targetof operating profit.

 SG&A ratio increased in the 1H by 0.9%, but improved with eachpassing month to reach -0.1% in the 2H.

▶ GMS Business Existing Store Performance in FY2022
Sales

0

Existing
StoresClosedStores etc.

Head Office
Expenses& Adjustments

FY2022

Q2

Q3

Q4

Cum.

（YoY）

98.1％

99.5％

100.3％

97.8％

98.9％

（Change）

▲1.4％

▲0.9％

+0.1％

+1.7％

▲0.1％

（Change）▲2 bil.

▲2.6 bil.

＋0.6 bil.

+1.4 bil.

▲2.6 bil.

GPM

FY2021

Q1

OP

9

Discount Store Business：Progress on majica app

The number of registered members reached 9.87 million at the end of June (10 million in July). The app will be
updated to enhance functionality and improve convenience, and will be used as a core tool for offering the "new
CV+D+A".

The number of majica app members reached 9.87 million
at the end of the fiscal year. It reached 10 million in Julyand further grew to 10.06 million by the end of July.
FY2021

FY20203.82 mil.

FY2022

6.84 mil.

+3.02 mil.
(+79%)

9.87 mil.

+3.03 mil.
(+44%)

June 30,2022
9.87 mil.

10 mil.
1000万人9 mil.
900万人

June 30,2021
6.84 mil.

8 mil.
800万人

700万人
7 mil.
600万人
6 mil.
5 mil.
500万人
4 mil.
400万人

300万人
3 mil.

<Example of CRM trial measures in FY2022 >July
10.06 mil.

▶ majica app members(1) First-time use promotion for new members

To increase the utilization rate of newly registered members, themembership benefits such as coupons and points, as well asrecommendations were sent. ⇒ Achieved utilization rate of new
members that is approximately double the initial projection.

(2) Promotion of retention through second and subsequent
use
Coupons to promote additional store visits based on location ofresidence and frequency of store visits led to repeat customers.
⇒ Increased regular purchase ratio.

June 30,2020
3.82 mil.

6月
Jun

After the updates of the app which adds payment and review
functions, it will be the center of offering the "new CV+D+A".
• Provide new CV+D+A with enhanced convenience andinteractivity• Promoting store visits and purchases through CRM measures
suited to customer attributes(3) Reinforcement of promotion of return visits to defectedcustomers
9月
Sep

12月
Dec

FY2021

3月
Mar

6月
Jun

9月
Sep

12月
Dec

FY20223月Mar

6月 Jul
7月
Jun

As a focused Q4 measure, the store gave points to customers who
had not visited the store for a certain period of time and sent out email newsletters. ⇒ Nearly 20% of the subscribers returned to thestore.

10

Overseas Business

Even during the pandemic, sales and profits continued toincrease owing to new store openings in Asia and improved
gross profit margins driven by PPIC.

FY2022 Cumulative Change in Sales<100 Million Yen>

■Asia Business The company opened 11 new stores in 6 countries and achieved asignificant increase in sales (sales increased from 50.1 billion yen in
FY2021 to 69.0 billion yen in FY2022, +18.9 billion yen/+37.7%).

 Existing store gross profit margin improved by 1.2% YoY due to the
expansion of PPIC initiatives as well as the strengthening of PB
products and pricing revisions in response to cost inflation.

0

FY2021Q2
FY2021

Asia
Asia

North
America

Gelson’s

FY2022 Cumulative Change in Operating Profit

FY2022Q2
FY2022 The operating profit margin of existing stores will continue toexceed 10%, and the restaurant & retail business will be further
expanded to create profit-earning opportunities (following sushi
and rice milling, the company will newly launch wagyu beef skewers,
etc.)■North America Business<100 Million Yen>

 In the existing business, California stores were able to continue
capturing demand for food service alternatives due to the longerthan-expected impact of the pandemic, while Hawaii stores were
negatively impacted by the delayed recovery in tourism.
 One-time costs were incurred due to system integration in
Hawaii. Operating income declined by 0.4 billion yen from theprevious year.

0

FY2021

Asia
Asia

North
America

Gelson’s

FY2022

 Gelson's made a significant contribution to the increase in sales andprofit as a newly consolidated subsidiary. Q4 non-consolidated
profit was slightly higher than the previous Q4 due to a reactionary
decline in demand for alternative to eating out (almost flat
excluding the effect of foreign exchange rates).

*1. Figures for North America are the simple aggregate for DQ USA, MARUKAI and QSI. Results are for the period from April to December 2021, while Gelson’s is from July 2021 to June 2022.
*2. Figures for Asia are the simple aggregate for PPRM(SG), PPRM(HK), DONKI Thailand, PPRM(TW), PPRM(MY) and Macau PRRM(MO). Results are for the period from April 2021 to March 2022.
*3. Gelson's operating income is calculated after deducting amortization of goodwill (approx. 0.7 billion yen in FY2021 and approx. 3 billion yen in FY2022).

11

Overseas Business: Expanding the Scale of Operations in Asia
Aggressive expansion of retail business in scale（Store openings, existing stores）

Even during the pandemic, 11 new stores were opened (including the first
store in Macau). Existing stores also continued to achieve an operating
profit margin of 10% or more, despite the negative impact of Covid-19 andthe in-house competition in some areas.
Area
SG

HK

TH

TW
MY
MO

FY2021 FY2022

8
7
2
1

12
9
4
2

No. ofstores

+4
+2
+2
+1

1

2

+1

0

1

+1

Creation of business opportunities
through ‘restaurant & retail’ format■ Sensen Sushi
Overview of businessAlthough there is a cannibalization impact byhaving opened 4 stores, we have captured
alternative demand for eating out during the
pandemic. Going forward, we expects areactionary decline due to the re-opening.

In line with initial expectations, however, there
were some cannibalization due to the
expansion of new store openings. Sales ofrestaurant & retail format are strong. Recovery
of tourism is expected to take time.
In the 1H, sales grew due to demand foralternative to eating out. Going forward, thecompany expects a reactionary decline, butaims to secure nighttime sales and expand
sales of restaurant & retail format.
Gradual recovery despite the slowdown of
special demand after the new openings andthe impact of the covid-19 restrictions.
Expansion of restaurant & retail sales is also
expected.

The market remained sluggish until Oct. '21
due to the strict urban lockdown; it is expected
to gradually recover with the easing ofrestrictions from April.
Due to the entry restriction, the first store was
set up with only local human resources.
However, it was affected by the covid-19
restrictions, and even now, the regulations arebeing repeatedly relaxed and tighten.

The first store opened in Oct. '21 continued toachieve an operating margin of 10% or higher,
pushing up the retail operating margin by about
1.5%.
In Apr. '22, the second store Peak Galleria(HK) was
opened as a single-unit store, not integrated with aexisting store, and in May, the third store Island
Resort Mall(HK) was opened to accelerate theopening of new stores.
In the following fiscal year and beyond, we willcontinue to aggressively open new stores as this is anext growth business format after retail.

■ Other formatThe first rice milling and rice ball store (SG), opened
in Nov. '21, continues to achieve an operating profit
margin of 10% or more. HK in June and Taiwan in
July, and expansion is underway.
Launched a new business format, "Wagyu Kushi" in
Taiwan, which is a ready-to-eat concept that allows
customers to enjoy Japanese wagyu beef easily.
Despite the small size of the restaurant, it has
achieved an operating margin of over 10%, and has
already rolled out to Malaysia and Singapore.

12

Status of major assets, liabilities and net assets
June 2021
Current Assets

Amount（Adjusted）*2

4,954

Cash and
Deposits

1,575

Account
receivableinstallment

655

Non-Current
AssetsBuildings, etc.
Land

Intangible Assets
Lease andGuarantee
Deposits

Total Assets*2

June 2022

Amount4,865
1768

June 2021

Change(89)
193

AmountTotal Current
Liabilities

Accounts PayableTrade*2（Adjusted）

3,536
1,500

(Unit: 100 Million yen)

June 2022

Amount

3,264
1,529

521

(134)

8,747

8,971

224

Total Noncurrent
Liabilities

5,779

6,581

3,174

3,147

(27)

Long-Term
Borrowings

2,715

2,762

732

(7)

2,034

Products(Unit: 100 Million yen)

2,615

787
739

13,701

2,059
2,684
862

13,837＜Status of major assets＞
・Non current asset▶ Tangible fixed assets ： 665.1 billion yen(+21. 3 billion yen)・ Investment related to store openings, etc.
46.6 billion yen
・ Depreciation and amortization
31.0 billion yen

25
69*1 Short-Term

Liabilities

Corporate Bonds

577

2,040

2,726

686

9,315

9,844

136

Liabilities and Net
Assets13,701

13,837＜Status of major liabilities＞▶ Interest-bearing debt ： 587.1 billion yen(+53.9 billion yen)
＜Status of net assets＞

29

(193)

Total Liabilities

4,386

(272)

383

76

Net Assets

Change

3,992

801
47

529

(394)

136

＜Others＞▶ Net D/E ratio： 1.05x▶ ROE： 15.3 % (annualized)▶ Net worth： 392.2 billion yen(Capital adequacy ratio： 28.3 ％)*1. Short-term liabilities = Short-term loans payable + Current portion of long-term loans payable + Current portion of bonds*2. In the Q2 of the FY2022, the Company finalized the provisional accounting treatment for business acquisitions.
The figures for FY2021 reflect the details of the finalization of the provisional accounting treatment.

13

Status of cash flows and capital expenditure▶ Cash Flow Status(Unit: 100 Million yen)

June 2021
Amount1,836

Beginning Balance

Amount791

Cash Flows from Operating
Activities(781)

Cash Flows from Investing
activities

Cash Flows from
Financing Activities(290)

Changes During the
Period(227)

Ending Balance
Free Cash Flow

June 2022

*1

1,609
10

1,609
951

(448)

(539)

195

1,804
504

income tax, 38.2 billion yen in depreciation andamortization, and 15.5 billion yen in foreignexchange profit.

Change

(227)

160

334

(249)

423

195

494

*1. Free Cash Flow = CF from operating activities + CF from investing activities.

▶ Status of capital expenditures
Capital Expenditures

460

520

＜Operating Cash Flows＞▶ Positive items: 92 billion yen in income before+61

Negative items: 7.5 billion yen in interest paid andinterests on bond, and 39.1 billion yen in income
taxes paid, resulting in 95.1 billion yen of cash in.

＜Investing Cash Flows＞▶ Positive items: 6.1 billion yen in proceeds from salesof tangible fixed assets, etc.

Negative items: 46.6 billion yen for tangible fixed
assets acquisition associated with store openings and4.1 billion yen for intangible acquisition, resulting in
44.8 billion yen of cash out.

＜Financing Cash Flows＞▶ Positive items: Income from the issuance of bonds of
79.6 billion yen

Negative items: 80.9 billion yen in repurchasing of own
stocks, 22.6 billion yen for the redemption of bonds, 10billion yen for dividends paid, resulting in 53.9 billion
yen of cash out.

＜Breakdown of Capex for FY2022＞▶ DS business 13.7 billion yen , GMS Business 11.8 billion
yen, Overseas business 8.8 billion yen,
IT 6 billion yen, Others 11.7 billion yen

14Shareholder Returns
Dividend

Dividend( yen)
20.0

20.0

Payout ratio

Annual dividend
年間配当(左軸)

配当性向(右軸)(right axis)(left axis)

15.0

Payout Ratio (%)

15.0

10.0

15.0

5.0
0.0

3.1

3.5

3.9

4.1

4.5

5.0

5.5

6.5

8.0

16.0

17.0

18.0

5.0

10.0

2010/6 2011/6 2012/6 2013/6 2014/6 2015/6 2016/6 2017/6 2018/6 2019/6 2020/6 2021/6 2022/6 2023/6

Shareholder Benefits(est.)・Eligible shareholders： Shareholders who are listed or recorded in the shareholders'register as of the last day of June and December, and who hold at least 100 shares.

・Benefits： 2,000 yen worth of majica points will be awarded through the majica app.
*It Is required to register as a member of the majica app to receive the points.

・Delivery schedule： The way to obtain points will be enclosed in other dividend-related
documents at the end of September and March, when dividends become effective.

・Start date： Introducing for shareholders listed and recorded in the final shareholders'register as of June 30, 2022. Thereafter, eligible shareholders will be determinedsemiannually.

・How to receive benefits：Enter the gift code enclosed with dividend-related documents
into the app.

*Registration and download of a majica app is required to use the points.

10.0

0.0

 Dividend for FY2022 increased to17.0 yen (+1.0 yen YoY, +0.5 yen
from the initial forecast) Dividend increased for
19 consecutive terms**The Company conducted a 2-for-1 common
stock split on July 1, 2015 and a 4-for-1
common stock split on September 1, 2019.
*For prior periods, figures are retroactively
adjusted.

100%
80%
60%
40%
20%
0%

Share Ownership
19.3%
1.6%

18.1%
2.3%

17.8%

18.6%

59.9%

59.4%

1.4%

1.6%

FY202020/6月期

FY2021
21年/6月期

18.5%
3.1%

12.9%
57.2%
2.3%

FY2022
22年6月期

Financial institutions ■ Financial instrument business operators■ Other Japanese Corporations ■ Foreign corporations andindividuals ■ Japanese individuals and others ■ Treasury stocks

15

Earnings forecast for the FY2023(Unit: 100 Million yen)

Earnings forecast for the 1H

Net sales
Gross profit
SG&A
Operating profit
Recurring profit
Net income
Net sales (yen)EPS (yen)AmountRatio

YoY

100.0％

104.4％

30.8％

110.1％

2,412

25.2％

107.6％

478

5.6％

123.0％

5.0％

107.4％

3.4％

109.5％-

112.0％-

133.3％

9,583

2,949

537
330

55.34
4.00

Earnings forecast for the FY2023
Amount18,900

Ratio

YoY

100.0％

103.2％

30.9％

107.4％

4,898

25.9％

107.7％

825

5.0％

106.0％

4.4％

82.1％

3.0％

91.9％

-

93.0％

-

105.9％

5,838

940
569

95.42
18.00

16

Assumptions for the earnings forecast for the FY 2023
Sales

■Sales Store Openings<100 Million yen>

〈Domestic〉 New Store：9 stores/ Conversion：4 stores〈Overseas〉 New Store：12 stores Existing stores YoY

 DS Business：100.3％, GMS Business：100.3％■Gross Profit Margin 30.9％（+1.2％）
 PB/OEM sales composition target

0

FY2022DS

GMS

Overseas

OthersOperating Profit

FY2023

Forecast

DS 16.8％（+2.6％), GMS 20.1％（+2.1％）■SG&A：25.9％（YoY +1.1％）
 Labor Cost Ratio：12.1％（YoY +0.1％）

 Others：13.9％（YoY +1.0％）<100 Million yen>

Impact of higher utility and labor costs and IT-related investments■CapexTotal about 75.0 billion yen Domestic DS business 21.5 bil. yen, GMS business 8 bil. yen,Overseas business 18.0 bil. yen (including 5 bil. Yen +α for Guamand Hawaii), IT related 6 bil. yen,
Others 21.5 bil. yen (including Shibuya approx. 14 bil. yen )0■Exchange Rate
FY2022DS

GMS

Overseas

Others

FY2023

Forecast

1USD＝122.41 yen, 1HKD＝15.64 yen, 1SGD＝90.47 yen,
1THB＝3.68 yen, 1MYR＝29.14 yen, 1TWD＝4.29 yen,
1MOP＝15.18 yen

17Appendix

18

Financial Results for Q4[Period: April 1, 2022 – June 30, 2022](Unit: 100 Million yen)Previous Q4 Results
Amount

Ratio

4,404

Net sales
Gross profit

1,273
1,129

SG&A
Operating profit
Recurring profit
Net income

143
139

85

100.0％
28.9％
25.6％
3.3％
3.2％
1.9％

Current Q4 Results
Amount

4,608

1,431
1,175

256
327
159

Ratio

100.0％
31.0％
25.5％
5.6％
7.1％
3.5％

*1

Change

+204
+158

+45

+113
+188
+74

YoY
104.6％
112.4％
104.0％
178.5％
235.4％－*2*1. PPIH has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the fiscal year ended in June 30, 2022.
For this reason, YoY comparisons are based on figures calculated using different standards. No retroactive adjustments will be made to the figures for the previous year. Compared to thecase without this accounting standard, sales, gross profit and SG&A expenses decreased by 1.8 billion yen and gross profit margin decreased by 0.4 %.

19

Information by corporation (Cumulative)▶ Domestic retail

Don Quijote

FY 2021Q3

FY2022Q3

FY 2021
Q3

FY 2021
Q3

FY 2021
Q3

24.3%

24.2%

(0.1%

25.2%

25.0%

(0.2%

33.4%

33.3%

(0.1%)

Operating profit

142

260

118

63

64

2

14

38

24

290

255

(34)

SG&A

Operating profit
ratio
Total Assets

1,487

2.1%

3,079
1,067

Net Assets

1,475

(11)

468
405

476
412

8
7

465

526

452

489

61
37

3.8%

1.7%

3.3%

3.3%

0.0%

0.7%

1.8%

1.1%

1,239

172

593

614

20

8

18

10

3,078

▶ Overseas retailNorth America

(1)

894

*2

FY 2021 Q3(Cumulative)

FY2022 Q3(Cumulative

ChangeFY 2021 Q3(Cumulative)

412

749

338

171

*3

FY2022 Q3(Cumulative642▶ Non- retail0Japan Asset Marketing

ChangeFY 2021 Q3(Cumulative)

63

82

ChangeFY 2021 Q3(Cumulative)

(7)

187

1,415

84

3,878

(143)

(Unit: 100 Million yen)UCS

FY2022 Q3(Cumulative

34.1%

33.9%

(0.2%)

37.8%

35.7%

(2.1%)

100.0%

100.0%

0.0%

Operating profit

73

134

61

34

17

(17)

76

68

(8)

17

11

(6)

338

615

277

137

217

80

7

8

1

Operating profit
ratio

6.1%

6.8%

0.7%

6.8%

2.5%

(4.3%)

34.7%

32.0%

(2.7%)Net Assets

194

133

(61)

125

146

21

1,162

1,210

48

Total Assets

815

848

33

405

460

56

1,629

1,609

(20)

170

189

Change

3.4%

75

(6)

187

(0.5%)

37.8

SG&A

211

1,332

5.4%

34.4

234

189

217

FY2022 Q3(Cumulative

4,021

(36)

Gross profit ratio

Gross profit

690

642

5.9%

1,319

(70)

1,198

784

501

Asia

55

1,354

1,574

(200)

*1

Sales

1,982

949

1,644

4,727

Change

0.7%

107

259

4,927

FY2022
Q3

25.1%

1,736

2,104

Change

24.4%

1,629

41

1,844

FY2022Q3Gross profit ratio

Gross profit

1,967

Change

UNY

6,662

243

1,926

FY2022
Q3

UD Retail

*1

Sales

6,905

ChangeNagasakiya(Unit: 100 Million yen)

189
178

2
2
8

9.0%

5.8%

(3.2%)

105

115

10

1,670

781

(888)

*1. PPIH has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020), etc. effective from the beginning of the 1st quarter of the fiscal year ended
on June 30, 2022. For this reason, YoY comparisons are based on figures calculated using different standards. No retroactive adjustments will be made to the figures for the previous year.
*2. Figures for North America are the simple aggregate for DQ USA, MARUKAI, QSI and Gelson’s. Results are for the period from April to March 2022, while Gelson’s is from July 2021 to June 2022.
*3. Figures for Asia are the simple aggregate for PPRM(SG), PPRM(HK), DONKI Thailand, PPRM(TW), PPRM(MY) and Macau PRRM(MO). Results are for the period from April to March 2022.

20

Segment Information by business (cumulative)▶ Segments Overview of previous term [Period: July 1, 2020 – June 30, 2021]

External Sales

Inter Company
Sales
Total

Segment Profit

Discount StoreBusiness

11,83570

11,906553

GMS
Business

4,500

90

4,590
166

Tenantleasing

OthersExternal Sales

Inter Company
Sales
Total

Segment Profit

13,27579

13,353722

GMS
Business

4,296

117

4,413
146

(Unit: 100 Million yen)

Total

*3

Adjustment

609

142

17,086621

187

17,303

12

134

45

(45)

▶ Segments Overview of current term [Period: July 1, 2021 – June 30, 2022]
Discount StoreBusiness*1*2

Tenantleasing

Others*3*1*2

17,0865-812(Unit: 100 Million yen)

Total

Adjustment

608

188

18,563

(86)

(217)

808

18,313104

17,086

(217)

147
42

-

217

596

13

Consolidated

Consolidated-

18,313(250)

18,313

250

(250)

885

1

*1. Reported segments are organized by the format of service provision, and comprises discount store business, GMS business and tenant leasing business.
*2. PPIH has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020),etc. effective from the beginning of fiscal year ended in June 30, 2022.
Figures related to previous periods will not be adjusted retroactively nor reflected.
*3. ”Others” includes holding company management, credit card business, etc.

-

887

21

Breakdown of SG&A

[Period: April 1, 2022 – June 30, 2022]*1

3 months ended June 30, 2021
Amount

SG&A

1,129

Salaries and allowances

436
135
160
75
323

Rent

Commission paid
Depreciation

Other[Period: July 1, 2021 – June 30, 2022]

Ratio

25.6%

9.9%
3.1%
3.6%
1.7%
7.3%

12 months ended June 30, 2021
Amount

SG&A

Salaries and allowances

Rent

Commission paid
Depreciation

Other

4,160

1,574
531
588
265
1,202

Ratio

24.3%

9.2%
3.1%
3.4%
1.5%
7.0%

(Unit: 100 Million yen)

3 months ended June 30, 2022

Amount

1,175
448
142
159
87
339

Ratio

25.5%

9.7%
3.1%
3.4%
1.9%
7.4%

104.0%

102.6%
104.6%
99.3%
116.8%
105.0%(Unit: 100 Million yen)

12 months ended June 30, 2022

Amount

4,547

1,754
550
596
313
1,335

YoY

Ratio

24.8%

9.6%
3.0%
3.3%
1.7%
7.3%

YoY

109.3%

111.4%
103.4%
101.3%
118.1%
111.1%*1. PPIH has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020),etc. effective from the beginning of the fiscal year ended in June 30, 2022.
As a result, comparisons with the same period of the previous fiscal year are based on figures calculated using different standards. Figures related to previous periods will not be adjusted
retroactively nor reflected.

22

Overview of results by consolidated businesses[Period : July 1, 2021 – June 30, 2022]

12 months ended June 30, 2021

Discount store business*1

Home electrical appliances

Amount11,835
879

Ratio

69.3%
5.1%

(Unit: 100 Million yen)

12 months ended June 30, 2022

Amount13,275
852

Ratio

72.5%
4.7%

YoY

112.2%
96.9%

Miscellaneous household goods

2,254

13.2%

2,631

14.4%

116.7%

Watches and fashion merchandise

1,447

8.5%

1,412

7.7%

97.6%

4,649

Food products

618

Sporting goods and leisure goods

1,198

North America Business

504

Asia Business
Other

GMS business
Clothing*1

Household goods
Food products
Other

Tenant leasing business
Others
Total

*1
*2

286

27.2%
3.6%

4,877
647

26.6%
3.5%

104.8%

3.8%

136.7%

7.0%

1,982

10.8%

1.7%

185

1.0%

2.9%

689

104.9%

165.5%
64.5%

4,500

26.3%

4,296

23.5%

95.5%

684

4.0%

658

3.6%

96.2%

547

3.2%

500

2.7%

3,215

18.8%

3,113

17.0%

609

3.6%

596

3.3%

17,086100.0%

18,313100.0%

54

142

0.3%

0.8%

24

147

0.1%

0.8%

91.4%

96.8%
45.4%

97.8%

103.4%
107.2%*1. Reported segments are organized by the format of service provision, and comprises discount store business, GMS business and tenant leasing business.
*2. ”Others” includes holding company management, credit card business, etc.

23

Store openings for current period
Corpo- Businessration Format

Jul

Q1
Aug

Sep

Oct

Dec

Jan
Teradamachi
Eki(Osaka)Q3
Feb

Okachimachi(Tokyo)Discount

Kinshicho
North Exit
(Tokyo)Nanao(Ishikawa)

MEGA
UDR

ShinMoriyama(Aichi)UNY

Nishishiro(Aichi)

TMT Plaza(Hong Kong)

*2

Rifu
(Miyagi)

Furukawa(Miyagi)

May

Full Year Estimates

6月

Kirakira Donki
KokuraDiverCity
uomachiTokyo Plaza(Tokyo)（Fukuoka）

Munakata（Fukuoka）

Minamiguchi（Chiba)Hekinan(Aichi)

Yokkaichi(Mie)

Haibara(Shizuoka)

Moriyama(Aichi)Obu(Aichi)

Hamakita(Shizuoka)

Kimitsu(Chiba)Ogaki(Gifu)DON DON
DONKI(Macau)Seacon Square(Thailand)

Tropicana
Gardens Mall
(Malaysia)(Singapore)Tampines 1(Singapore)

MBK Center(Thailand)

Amoy Plaza(Hong Kong)

Nagakute(Aichi)Yahagi(Aichi)Futaba(Yamanashi)

Waterway

Zhongxiao
Xinsheng(Taiwan)* 1. Solid lines in the UDR format indicate a tenant-in type format conversion.
* 2. Overseas stores are indicated in the opening months.

Opening :22 stores

Renovation :28 stores(Hiroshima)(NewGMS)

Overseas

Apr

Q4

Funabashi

Koshi

Matsunaga

Mar

Karatsu（Saga)(Kumamoto)

*1

GMS

Nov

Inage
Naganuma(Chiba)Kita Senjyu
West Exit(Tokyo)DQ

Q2

Kisogawa(Aichi)
Kagamigahara

Renovation:
8 stores（Gifu）

SeaconBangkae（Thailand）

Opening :11 stores
Renovation :6 stores

April 2021 ～ March 2022
＝ Format conversion, NewGMS

24

Store network
No. of retail stores in Japan

Discount StoreBusiness
Don Quijote

MEGA Don Quijote*1

Picasso etc.

*2

(MEGA) Don Quijote
UNY
GMS BusinessTotal (Japan)*3

No. of retail stores abroad
FY2022

FY2020

FY2021

430

444

450

457

463

468

135

139

140

140

140

140

225
41
29

150
580

Sen Sen Sushi Peak Galleria*5(Hong Kong)

226
52
27

139
583

Q1

226
54
30

138
588

Q2

229
57
31

137
594

Q3

234
58
31

136
599

DON DON DONKI
Seacon Bangkae(Thailand)

Q4

237
59
32

136
604

FY2021

North America
Business

38

65

MARUKAI

10

10

10

10

10

10

Gelson’s

-

27

27

27

27

27

Jun

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

4

DQUSA

24

QSI

4

24

Q1

65

4

24

Q2

65

4

24

Q3

65

4

24

Q4

65

4

24

Asia Business

11

19

21

23

27

30

PPRM (HK)

2

7

7

8

8

9

7

PPRM (SG)2

DONKI Thailand
PPRM (Taiwan)

PPRM (Malaysia)
Macau
PRRM(Macau)

Apr

FY2022

FY2020Total (Overseas)
Total

*4

-

8
2

1
1
-

10
2

1
1
-

10
2

1
1

1

11
4

1
2

1

12
4

2
2

1

49

84

86

88

92

95

629

667

674

682

691

699

*2. “Picasso etc.” includes Picasso, Essence, Kyoyasudo, Ekidonki, Soradonki, Jonetz Shokunin, Nagasakiya etc.
*3. “GMS Business” includes Apita/Piago, U-STORE, Piago Power , Power Super Piago etc.

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

25

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 Q1 results for the fiscal year ending June 2023 (Scheduled)
Date of announcement: November 8, 2022
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 orguarantees. 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. These materials are presented based on the premise that they will be used at discretion

and responsibility of the investor, regardless of the purposes that they use these materials for, and Pan Pacific International Holdings

Corporation bears no responsibility in any circumstances.

26

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/