Summary Report of Consolidated Financial Results
For the Fiscal Year Ended June 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:
Koji Ohara, President and CEO
Contact:
Mitsuo Takahashi, Senior Managing Director (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 fiscal year ended June 30, 2019(1) Consolidated Results(Millions of yen, except per-share data)
ProfitChange Operating Change
Ordinary Change
ChangeNet Sales
Attributable to(%)(%)
Income(%)
Income(%)
Owners of Parent
Fiscal year ended
1,328,874
41.1
63,11022.4
68,24019.3
48,25332.5
June 30, 2019
Fiscal year ended
941,508
13.6
51,568
11.7
57,21825.7
36,405
10.0
June 30, 2018
(Note) Comprehensive income: 51,114 million yen [37.8%] (FY 2019.6), 37,098 million yen [(7.5)%] (FY 2018.6)
Net Income
Per Share(Yen)

Net Income
Per Share-fully
diluted (Yen)

Return on
Equity (%)

Ordinary
Income on Total
Assets (%)

Operating
Income on
Net Sales (%)

Fiscal year ended
304.93304.00
15.6
6.5
4.7
June 30, 2019
Fiscal year ended
230.14229.66
13.3
7.9
5.5
June 30, 2018
(Reference) Equity in earnings of affiliates: 5,957 million yen (FY 2019.6), 4,579 million yen (FY 2018.6)(2) Financial Position(Millions of yen, except per-share data)

Total Assets

Ratio of Shareholders’ Equity
to Total Assets (%)

Net assets

Net Assets
per Share (Yen)

As of1,278,567
353,48725.8
2,081.55
June 30,2019
June 30,2018
806,778
312,495
36.0
1,835.55(Reference) Equity: 329,546 million yen (as of June 30, 2019), 290,363 million yen (as of June 30, 2018)(Note) Starting with the beginning of the first quarter of fiscal 2019, we are applying “Partial Amendments to AccountingStandard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No.28, February 16,2018).
Prior-year figures have been adjusted retroactively to conform with this accounting standard.
(3) The Consolidated Statements of Cash Flows

Fiscal year ended
June 30, 2019
Fiscal year ended
June 30, 2018

(Millions of yen)

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash
Equivalents

101,978(37,113)43,456

185,136

46,081(164,443)

116,083

75,883

2. Dividends
Dividend per share (yen)Year Ended June 30,
2018Year Ended June 30,
2019Year Ending June 30,
2020 (Forecast)

Total

Dividends intotal (annual,Millions of yen)

Dividend payout
ratio (consolidated
basis, %)Dividends on net
assets (consolidated
basis, %)

27.00

32.00

5,062

13.9

1.8

10.00

30.00

40.00

6,333

13.1

2.0

2.50

8.50

11.00

Six Months Ended
December 31

Year Ended
June 30

5.00―(Note)The Breakdown of Dividends for the Six Months Ended December 31, 2018: Ordinary dividend 5.00 Yen,
Commemorative dividend 5.00 Yen
It was resolved to conduct a 4-for-1 common stock split effective on September 1, 2019 at the Board of Directors
meeting held on July 12, 2019. The forecast information about Dividends for the fiscal year ending June 30, 2020 isprovided after taking into consideration the effect of the stock split. Without considering the stock split, the annual1dividend per share for the fiscal year ending June 2020 (forecast) will be 44.00 yen.
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)

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

Net Sales

Change(%)

Operating
IncomeChange(%)

Ordinary
IncomeChange(%)

ProfitAttributableto Owners of
ParentChange(%)

Net Income per
Share(Yen)

830,000

61.7

34,00013.3

34,000(3.8)

21,000(11.1)

33.16

1,650,000

24.2

66,000

4.6

66,000(3.3)

45,000

(6.7)

71.06

(Note) The forecast information about net income per share for the fiscal year ending June 30, 2020 is provided after taking
into consideration the effect of the stock split.
Without considering the stock split, net income per share for the fiscal year ending June 2020 (forecast) will be 282.24
yen.
4. Others(1) Significant changes in the scope of consolidation: Yes
Newly consolidated: 3 companies (PAN PACIFIC STRATEGY INSTITUTE PTE. LTD., UNY Co., Ltd., PAN
PACIFIC RETAIL MANAGEMENT (ASIA) PTE.LTD.)
Excluded: None
(2) Changes in accounting policies, procedures, and methods of presentation for preparing the consolidated financial
statements① Changes in line with revision to accounting standards: None
② Other changes: None
③ Changes in accounting estimates: None
④ Restatements: None
(3) Number of outstanding shares (Common stock)① Number of outstanding shares (Treasury shares included) June 30, 2019
June 30, 2018
② Number of treasury shares
June 30, 2019
June 30, 2018
③ Average number of outstanding shares during the period
June 30, 2019
June 30, 2018

158,321,760 shares
158,193,160 shares
4,680 shares
4,633 shares
158,242,778 shares
158,185,966 shares※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 developed based on judgments and estimates that have been madeusing 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
including changes in economic environments related to our business, market trends and exchange rates.
※The Company plans to hold financial result briefing for securities analysts and institutional investors on August 13,
2019. Presentation materials for the briefing will be available on the Company’s website.

2

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

As of June 30,

2018

2019

AmountAmountAssetsCurrent assets
Cash and deposits
Notes and Accounts receivables-trade
Accounts receivables - installment
Operating loans¥71,973¥172,673

12,84818,744－67,417－

8,966

135,781

188,510Prepaid expenses

3,749

7,036

Deposits paid

4,347

12,986

Other

7,919

20,790(4)(717)

236,613496,405

133,415

262,955

Merchandise and finished goods

Allowance for doubtful accounts
Total current assets

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

19,71825,471

Lands

188,866

315,047

213

1,593

Other, net
Construction in progress

5,701

5,814

347,913

610,880

Goodwill

17,60017,216

Other

10,647

20,386

Total intangible assets

28,24737,602

Investment securities

31,606

16,681Long-term loan receivables

95,815

2,962

Long-term prepaid expenses

3,531

6,105

Total property, plant and equipment
Intangible assets

Investments and other assets

Retirement benefit assets

－

6,362

Deferred tax assets

15,38919,668

Lease and guarantee deposits

46,49480,443

Other

2,848

3,965

Allowance for doubtful accounts(1,678)(2,506)

194,005

133,680

570,165

782,162¥806,778¥1,278,567

Total investments and other assets
Total non-current assets

Total assets3

(Millions of yen)
As of June 30,

As of June 30,

2018

2019

AmountAmountLiabilities
Current liabilities
Accounts payables - trade¥93,030¥159,064

Short-term loan payables－

123

Current portions of long-term loans payable

17,78819,721

Current portions of bonds

3,616

22,816

Payables under fluidity lease receivables

7,262

7,304

Accounts payables - other

16,59049,580Accrued expenses

13,242

22,684

Deposits received

3,740

19,407

Income taxes payables

8,821

9,841

Provisions for point card certificates

1,892

5,227

Other

5,905

22,218

171,886

337,985

Bond payables

91,274

238,458

Long-term loan payables

200,668

256,777

Long-term payables under fluidity lease receivables

12,104

4,703

Asset retirement obligations

6,538

23,083267

180

Total current liabilities
Non-current liabilities

Negative goodwill
Other11,54663,894

Total non-current liabilities

322,397

587,095

494,283925,080

22,436

22,675

Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus

19,975

15,414Retained earnings

248,940

291,221

(14)

(14)

291,337

329,296

244

173

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment(1,218)554

Remeasurements of defined benefit plans

－

(477)

(974)

250

345

724

Total accumulated other comprehensive income
Subscription rights to shares
Non-controlling interests

21,787

23,217

Total net assets

312,495

353,487¥806,778¥1,278,567

Total liabilities and net assets

4Consolidated Statements of Income(Millions of yen)
Fiscal year ended
June 30, 2019

Fiscal year ended
June 30, 2018
AmountNet sales

Amount¥941,508¥1,328,874

697,517958,347

243,991

370,527

192,423

307,417

51,568

63,110

1,604

1,777

86

86

4,579

5,957

457

403

Other

2,915

4,665

Total non-operating income

9,641

12,888

2,912

4,780

Bond issuance cost

90

1,253

Cost of claim's liquidation

382

274

Commission fees

300

500

Other

307

951

3,991

7,758

57,21868,240Gain on sales of non-current assets

93

2,085

Gain on step acquisitions

－

1,424

Gain on bargain purchase

－

9,315

Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
Amortization of negative goodwill
Equity in earnings of affiliates
Commission fees

Non-operating expenses
Interest expenses paid on loans and bonds

Total non-operating expenses
Ordinary income
Extraordinary income

Compensation income for expropriation

457

11

Other

100

123

Total extraordinary income

650

12,958

1,007

10,305172

509

Loss on closing of stores

189

1,698

Other

127

1,215

1,495

13,727

Profit before income taxes

56,37367,471

Income taxes - Current

16,986

19,292

Income taxes - Deferred543(1,740)17,52917,552

Profit38,84449,919Profit attributable to non-controlling interests

2,439

1,666

¥36,405¥48,253

Extraordinary losses
Impairment loss
Loss on retirement of non-current assets

Total extraordinary losses

Total income taxes

Profit attributable to owners of parent

5Consolidated Statements of Comprehensive Income(Millions of yen)
Fiscal year ended
June 30, 2019

Fiscal year ended
June 30, 2018
AmountProfitAmount¥38,844¥49,919

Other comprehensive income
Valuation difference on available-for-sale securities

(86)

(66)

(1,663)

1,743

－

(477)

3

(5)

(1,746)

1,195

Comprehensive income¥37,098¥51,114(Breakdown)Comprehensive income attributable to owners of parent¥34,659¥49,476

2,439

1,638

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 attributable tonon-controlling interests

6Consolidated statements of changes in Net Assets(Millions of yen)
Fiscal year ended
June 30, 2018
AmountShareholders' equity
Capital stock
Balance at the beginning of current period
Changes of items during the period
Issuance of new shares
Total changes of items during the period
Balance at the end of current period
Capital surplus
Balance at the beginning of current period
Changes of items during the period
Issuance of new shares
Capital increase of consolidated subsidiaries

Increase of consolidated subsidiaries- non-controlling interests
Purchase of shares of consolidated subsidiaries
Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Changes of items during the period
Dividends of surplus
Profit attributable to owners of parent
Change of scope of consolidation
Other
Total changes of items during the period
Balance at the end of current period
Treasury shares
Balance at the beginning of current period
Changes of items during the period
Purchase of treasury shares
Total changes of items during the period
Balance at the end of current period
Total shareholders' equity
Balance at the beginning of current period
Changes of items during the period
Issuance of new shares
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Change of scope of consolidation
Increase of consolidated subsidiaries- non-controlling interests
Capital increase of consolidated subsidiaries

Purchase of shares of consolidated subsidiaries
Other
Total changes of items during the period
Balance at the end of current period

7

Fiscal year ended
June 30, 2019
Amount¥22,425¥22,43611
1122,436239
239
22,675

19,425

19,975

11
539

239
－

－

736

－
550
19,975(5,536)(4,561)
15,414

216,446

248,940(4,113)36,405－
202
32,494
248,940(5,854)
48,253(118)－
42,281
291,221

(14)

(14)

－
－
(14)

(0)
(0)
(14)

258,282

291,337

22(4,113)36,405－－478(5,854)
48,253
(0)
(118)

－

736

539
－
202
33,055¥291,337－(5,536)－37,959¥329,296

(Millions of yen)
Fiscal year ended
June 30, 2019
AmountFiscal year ended
June 30, 2018
AmountAccumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Remeasurements of defined benefit plans
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total accumulated other comprehensive income
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

Subscription rights to shares

Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

Non-controlling interests

Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

Total net assets

Balance at the beginning of current period
Changes of items during the period
Issuance of new shares
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Change of scope of consolidation
Increase of consolidated subsidiaries- non-controlling interests
Capital increase of consolidated subsidiaries
Purchase of shares of consolidated subsidiaries
Other
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

8

¥326

¥244

(82)
(82)
244

(71)
(71)
173

445

(1,218)(1,663)(1,663)(1,218)

1,772
1,772
554

－

－

－
－
－

(477)
(477)
(477)

771

(974)

(1,745)(1,745)
(974)

1,224
1,224
250

98

345

247
247
345

379
379
724

20,77921,787

1,008
1,008
21,7871,430
1,430
23,217

279,930

312,495

22(4,113)36,405－－478(5,854)
48,253
(0)
(118)

－

736

539
－
202
(490)
32,565¥312,495－(5,536)－
3,033
40,992¥353,487

Consolidated Statements of Cash Flows
Fiscal year ended
June 30, 2018
AmountCash flows from operating activities:
Profit before income taxes
Depreciation and amortization
Impairment losses
Amortization of negative goodwill
Gain on bargain purchase
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses paid on loans and bonds
Equity in earnings of affiliates
Gain on step acquisitions
Loss (gain) on sales and retirement of property, plant and equipment
Loss on closing of stores
Compensation income for expropriation
Offset payments for house rental fees with lease and guarantee deposits
Decrease (increase) in notes and accounts receivables-trade
Increase in inventories
Increase in notes and accounts payables-trade
Decrease in accounts receivables - installment
Decrease in accounts payables - other
Increase (decrease) in deposits received
Increase (decrease) in other current liabilities
Increase in other non-current liabilities
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refund
Proceeds from compensation for expropriation
Dividends received from affiliates accounted for using equity method
Payments for loss on disasterNet cash provided by operating activities
Cash 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 deposits
Proceeds from collection of lease and guarantee deposits
Payments for purchase of shares of subsidiaries
result that in change in scope of consolidation
Payments for purchase of shares of subsidiaries and affiliates
Payments of loan receivables
Proceeds from collections of loan receivables
Other, net
Net cash used in investing activities

9(Millions of yen)
Fiscal year ended
June 30, 2019
Amount¥56,373
17,378
1,007
(86)
－
(36)
(1,604)
2,912(4,579)
－
119
189
(457)
1,777
(3,816)(9,235)
4,638
－
(585)
1,015
(509)
308
327
65,136
1,102(2,274)(19,152)
637
582
50
－
46,081¥67,471
23,722
10,305(86)(9,315)147(1,777)
4,780(5,957)(1,424)(1,342)
1,698
(11)
2,775
3,258
(14,489)
3,924
59,700(10,343)(5,583)
1,508
490
(202)
129,249
1,521(4,555)(27,462)
3,520
11
56
(362)
101,978(53,341)
1,225
(695)
(2,123)
153(43,835)
7,579(2,298)(3,394)
1,163(16,283)(5,423)(19,976)(77,979)
4,601(25)¥(164,443)(7,936)(1,613)
19,125(481)¥(37,113)

Fiscal year ended
June 30, 2018
AmountCash flows from financing activities:
Net decrease in short-term loans payables
Proceeds from long-term loans payables
Repayments of long-term loans 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 stocks of subsidiaries
that do not result in change in scope of consolidation
Proceeds from share issuance from non-controlling shareholders
Other, net
Net cash provided by financing activities
Effect of foreign exchanges rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Increase in cash and cash equivalentsfrom newly consolidated subsidiaries
Cash and cash equivalents at the end of the period(Millions of yen)
Fiscal year ended
June 30, 2019
Amount¥(281)
134,689(6,057)
19,903(19,316)(7,514)23(4,113)(892)¥－
90,000(196,594)
168,647(3,616)(7,612)478(5,854)(808)－(4,322)－(359)
116,083

3,569
(432)
43,45668(2,211)
78,094

318
108,63975,883－614¥75,883¥185,136

Segment Information
1. Overview of Reporting Segments
The reportable segments of the Group are constituent units of the Group for which separate financial information isavailable and which are subject to periodic examination by the Board of Directors and management meetings of theCompany for the purpose of deciding the allocation of management resources and evaluating business results.
The Group consists of segments by business and has determined that “Discount Store business”, “GMS business” and“Rent business” are its reportable segments taking into accounts the business form.
The “Discount Store business” presents stores such as "Don Quijote", "MEGA Don Quijote", "MEGA Don Quijote UNY".
The “GMS business” presents stores such as "APITA", "PIAGO".
The “Rent business” operates tenant invitations, lease and facility management of shopping malls.
（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 reviewed the classification method, in the third quarter ended March
31, 2019.The two Reporting segments “Retail business” and “Rent business” heve been reconciled 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 the business has been related “Discount Storebusiness”.
Segment information for the previous fiscal year is presented after reclassification that incorporates thisreclassifications.
2. Calculation of net sales, profit and loss, and assets, etc.
The same accounting method with which is applied to the consolidated financial statements is applied to segment
accounting.
Income of reporting segment and others are calculated based on operating income.
Intersegment sales and transfers are calculated based on market value.
10

3. Information related to net sales, profit and loss, and assets, etc. by reporting segment
For the Fiscal Year Ended June 30, 2019
(Millions of yen)
Reporting segment
DiscountStorebusiness

GMS
businessRentbusiness

Sub Total

Others(Note 1)

Total

AdjustmConsolidated
ent(Note 3)(Note 2)

Sales, Segment income
Sales
Sales to third parties¥1,015,924 ¥266,058¥39,132 ¥1,321,114¥7,760 ¥1,328,874¥―¥1,328,874

3,567

551

1,762

5,880

3,153

9,033

(9,033)―

1,019,491

266,609

40,894

1,326,994

10,913

1,337,907(9,033)

1,328,874

Segment income (losses)

49,589

7,039

7,795

64,423(1,240)63,183(73)

63,110

Segment Assets

633,193

233,372

232,544

1,099,109

123,967

1,223,076

55,491

1,278,567

18,186

2,390

3,095

23,671

32

23,70319

23,722

Intersegment sales
Total

Others (Note 4)(1) Depreciation expenses(2) Increase in property, plant¥39,461¥1,105¥4,886¥45,452¥1,287¥46,739¥246¥46,985and equipment, andintangible assets
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 ¥(73) million adjustment to segment income is an intersegment elimination.
The ¥55,491 million adjustment to segment assets includes ¥135,311 million of companywide assets not allocated to
the respective reporting segments, and ¥(79,820) million of net eliminations for intersegment transaction.
3. Segment income is adjusted to the consolidated operating income.
4. Increase in property, plant and equipment, and intangible assets includes long-term prepaid expenses.
For the Fiscal Year Ended June 30, 2018
(Millions of yen)
Reporting segment

AdjustmConsolidated
ent(Note 3)(Note 2)

Sub Total

Others(Note 1)

Total

¥17,420¥940,462¥1,046¥941,508¥―¥941,508

－

1,874

4,455

－

4,455

(4,455)―925,623－

19,294

944,917

1,046

945,963(4,455)

941,508

Segment income (losses)

51,508－2,768

54,276(2,691)

51,585(17)

51,568Segment Assets

600,270－

58,622658,892

71,986730,878

75,900806,778

15,989－1,358

17,34728

17,375

3

17,378DiscountStorebusiness

GMS
businessRentbusiness¥923,042

¥－

2,581

Sales, Segment income
Sales
Sales to third parties
Intersegment sales
Total

Others (Note 4)(1) Depreciation expenses(2) Increase in property, plant¥－¥50,778¥3,746¥54,524¥145¥54,669¥28¥54,697and equipment, andintangible assets
Notes
1. “Others” includes the service related to the operation of the Company (Holdings Company) and Credit Card businessand so on, which does not belong to the Reporting segment.
2. The ¥(17) million adjustment to segment income is an intersegment elimination.
The ¥75,900 million adjustment to segment assets includes ¥53,822 million of companywide assets not allocated to
the respective reporting segments, and ¥22,078 million of net eliminations for intersegment transaction.
3. Segment income is adjusted to the consolidated operating income.
4. Increase in property, plant and equipment, and intangible assets includes long-term prepaid expenses.

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