Summary Report of Consolidated Financial Results
For the First Quarter Ended September 30, 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 first quarter of fiscal 2020 (From July 1, 2019 to September
30, 2019)(1) Results of Business Operations(Millions of yen, except per-share data)
OperatingOrdinary
Net Sales
Change (%)
Change (%)
Change (%)
IncomeIncomeThree Months Ended
428,736
71.4
21,13245.7
20,44914.1
September 30, 2019
Three Months Ended
250,080
11.9
14,503
1.4
17,91725.3
September 30, 2018
(Note) Comprehensive income: 11,995 million yen [△12.0%] (FY 2020.6 1Q), 13,637 million yen [38.2%] (FY 2019.6 1Q)
ProfitAttributable to
Owners of Parent

Change (%)

Net IncomePer Share(Yen)Net Income Per
Share-fullydiluted (Yen)Three Months Ended
12,604
8.2
19.90
19.84
September 30, 2019
Three Months Ended
11,646
37.6
18.40
18.36
September 30, 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 theprevious fiscal year.
(2) Financial Position(Millions of yen, except per-share data)
Total Assets

Net assets

Ratio of Shareholders’Equityto Total Assets (%)

As of September 30,
1,267,021
360,801
26.6
2019
June 30, 2019
1,278,567
353,487
25.8(Reference) Equity: 336,804 million yen (as of September 30, 2019), 329,546 million yen (as of June 30, 2019)
2. Dividends
Three Months Ended
September 30
Year Ended June 30,
2019Year Ending June 30,
2020
Year Ending June 30,
2020 (Forecast)－Six Months Ended
December 31

YenNine Months
Ended March 31

Year Ended June30

Total

10.00

－30.00

40.00

2.50

－8.5011.00－(Note) Revision to the dividend forecast in the first quarter of fiscal 2020: None(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)
ProfitNet

ChangeOperating

ChangeOrdinary

ChangeAttributable toChange

Sales(%)

Income(%)

Income(%)

Owners of(%)

ParentSix Months Ending
December 31, 2019Year Ending
June 30, 2020

Net Incomeper Share(Yen)

840,000

63.6

36,00019.9

36,0001.9

21,800

△7.7

34.41

1,660,000

24.9

68,0007.7

68,000△0.4

45,000

△6.7

71.03

(Note) Revision to the business forecast in the first quarter of fiscal 2020: Yes(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.
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)
September 30, 2019
633,526,640 shares
June 30, 2019
633,287,040 shares② Number of treasury share
September 30, 201918,924 shares
June 30, 201918,720 shares③ Average number of outstanding shares during the period
September 30, 2019
633,313,339 shares
September 30, 2018632,754,108 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 November
6, 2019. Presentation materials for the briefing will be available on the Company’s website.

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

As of September 30,

2019

2019

AmountAmountAssets
Current assets
Cash and deposits¥172,673¥160,742

Notes and Accounts receivables-trade

18,744

22,835

Accounts receivables - installment

67,41773,345

Operating loans
Merchandise and finished goods
Prepaid expenses

8,966

8,922

188,510

181,939

7,036

6,782

Deposits paid

12,986

7,633

Other

20,79021,869

(717)

(801)

496,405

483,266

262,955

262,744

Allowance for doubtful accounts
Total current assets

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

25,471

26,100Lands

315,047

314,750

7,407

7,625

610,880

611,219

Goodwill

17,216

16,551

Other

20,386

20,883

Total intangible assets

37,60237,434

16,681

17,148Long-term loan receivables

2,962

2,889Long-term prepaid expenses

6,105

6,122

Retirement benefit assets

6,362

6,679

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities

Deferred tax assets

19,66820,451

Lease and guarantee deposits

80,44380,414

Other

3,965

3,883

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

Total assets

3(2,506)(2,484)

133,680

135,102782,162

783,755¥1,278,567¥1,267,021

(Millions of yen)
As of June 30,

As of September 30,20192019AmountAmountLiabilities
Current liabilities
Accounts payables - trade¥159,064¥148,773

Short-term loan payables

123

123

Current portions of long-term loan payables

19,721

14,839Current portions of bonds

22,816

22,916

Payables under fluidity lease receivables

7,304

7,332

Accounts payables - other49,58051,583

Accrued expenses

22,684

19,848Deposits received

19,407

20,247

Income taxes payables

9,841

10,591

Provisions for point card certificates

5,227

5,938

Other

22,21824,329Total current liabilities

337,985

326,519Bond payables

238,458

237,250

Long-term loan payables

256,777

251,578

Non-current liabilities

Long-term payables under fluidity lease receivables

4,703

2,859

Asset retirement obligations

23,08323,254180

159

Negative goodwill
Other63,89464,601

Total non-current liabilities

587,095

579,701

925,080

906,220

22,675

22,810Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus

15,414

15,548Retained earnings

291,221

299,075

(14)

(14)

329,296

337,419

173

410

Foreign currency translation adjustment

554

(560)

Remeasurements of defined benefit plans

(477)

(465)

Total accumulated other comprehensive income

250(615)724

524

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

Subscription rights to shares
Non-controlling interests

23,21723,473

Total net assets

353,487

360,801¥1,278,567¥1,267,021

Total liabilities and net assets

4Consolidated Quarterly Statements of Income(Millions of yen)

Net sales

Three months ended

Three months ended

September 30, 2018

September 30, 2019

AmountAmount¥250,080¥428,736

183,348

306,116

66,732

122,620

52,229101,488

14,503

21,132

Interest and dividend income

487

180

Amortization of negative goodwill

22

22

Equity in earnings of affiliates

2,513

120

Other

1,353

1,044

Total non-operating income

4,375

1,366

823

1,379

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

Non-operating expenses
Interest expenses paid on loans and bonds
Foreign exchange losses－575

Cost of claim's liquidation

7951

Other59

44

Total non-operating expenses

961

2,049

17,917

20,449Gain on sales of non-current assets

014

Reversal of provision for loss on store closings

－268

Other

01

Total extraordinary income

0283

6847

Ordinary income
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Loss on closing of stores

3270

Loss on disaster

232

161

934

279

1,112

Profit before income taxes

17,638

19,620

Income taxes - Current

5,352

6,317

Income taxes - Deferred

2546

5,354

6,863

12,284

12,757638

153¥11,646¥12,604

OtherTotal extraordinary losses

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

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

ProfitThree months ended

Three months ended

September 30, 2018

September 30, 2019

AmountAmount¥12,284¥12,757

55

246

1,300

(1,011)－12(2)(9)

1,353(762)¥13,637¥11,995

Comprehensive income attributable to owners of parent¥12,999¥11,739

Comprehensive income attributableto non-controlling interests

638

256

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of affiliates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to6Consolidated Quarterly Statements of Cash Flows
Three months ended
September 30, 2018
Amount(Millions of yen)Three months ended
September 30, 2019
AmountCash flows from operating activities:
Profit before income taxes
Depreciation and amortization
Amortization of negative goodwill
Increase (decrease) in provisionInterest and dividend income
Interest expenses paid on loans and bonds
Equity in earnings of affiliates
Loss on sales and retirement of property, plant and equipment
Decrease (increase) in notes and accounts receivables - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payables - trade
Increase in accounts receivables - installment
Increase in accounts payables - other
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Payments for loss on disaster
Income taxes paid
Income taxes refund
Net cash provided by operating activities¥17,6384,448(22)
94(487)823(2,513)6407(1,145)
4,521
－
467
(583)
23,654430(1,014)(158)(8,309)－14,603¥19,620
7,094(22)(1,222)
(180)
1,379
(120)
866
(4,161)
6,375(10,195)(5,928)2,713
1,487
17,70648(977)(85)(5,825)12
10,879Cash 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 lease and guarantee depositsProceeds from collection of lease and guarantee deposits
Payment for store opening in progress
Proceeds from collections of loan receivables
Other, net
Net cash used in investing activities(13,450)0(490)(1,212)
235
(411)
636
69
(14,623)(8,592)
119(1,111)
(493)
221
(116)
14
49
(9,909)65,000(2,970)(1,108)(1,878)－(4,271)(808)－(10,012)(1,108)(1,861)69(4,750)－(4,322)－(52)
49,591
428
49,99975,8830(20)(17,682)(522)(17,234)
185,136－¥125,882¥167,902

Cash flows from financing activities:
Proceeds from long-term loan payables
Repayments of long-term loan payables
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 (decrease) in cash and cash equivalentsCash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated subsidiary
Cash and cash equivalents at end of period
7Segment Information
For the first quarter ended September 30, 2019
1. Information concerning sales and income by reporting segment(Millions of yen)
Reporting segment
DiscountStorebusiness

AdjustmConsolidatedent(Note 3)(Note 2)

Sub Total

Others(Note 1)

Total

¥15,172¥424,924¥3,812¥428,736¥－¥428,736

GMS
business

Rentbusiness¥281,599 ¥128,153

Sales, Segment incomeSales
Sales to third partiesIntersegment sales

1,404

992

1,024

3,420

1,566

4,986

(4,986)－Total

283,003

129,145

16,196428,3445,378

433,722(4,986)

428,736

Segment income¥14,963¥2,864¥3,159¥20,986¥12¥20,998¥134¥21,132

Notes
1. “Others” includes the service related to the operation of the Company (Holdings Company), Credit card service and soon, which does not belong to the Reporting segment.
2. The ¥134 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 ended
March 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 first quarter ended September 30, 2018 is presented after reclassification that incorporates
this reclassifications.
3. Information concerning impairment loss of fixed assets or goodwill by reporting segment
Not applicable
For the first quarter ended September 30, 2018
1. Information concerning sales and income by reporting segment(Millions of yen)
Reporting segment

AdjustmConsolidatedent(Note 3)(Note 2)

Sub TotalOthers(Note 1)

Total¥4,731¥249,778¥302¥250,080¥－¥250,080－

476

1,199－

1,199(1,199)－

245,770－

5,207

250,977302

251,279(1,199)250,080¥14,188¥－¥779¥14,967¥ (459)¥14,508¥(5)¥14,503

DiscountStorebusiness

GMS
businessRentbusiness¥245,047¥－

723

Sales, Segment income
Sales
Sales to third parties
Intersegment sales
Total
Segment income (losses)
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.
2. The ¥(5) 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
Not applicable8