Summary Report of Consolidated Financial Results
For the Fiscal Year Ended June 30, 2020

(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://ppih.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, 2020 (from July, 2019 to June 30,
2020)(1) Results of Business Operations(Millions of yen, except per-share data)
Profit Attributable
Change Operating Change Ordinary Change
ChangeNet Sales
to Owners of(%)(%)
Income(%)
Income(%)
ParentFiscal year ended
1,681,947
26.6
75,99720.4
75,17310.2
50,303
6.9
June 30, 2020
Fiscal year ended
1,328,874
41.1
63,11022.4
68,24019.3
47,066
29.3
June 30, 2019
(Note) Comprehensive income: 50,209 million yen [0.6%] (FY 2020.6), 49,927 million yen [34.6%] (FY 2019.6)
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
79.39
79.18
14.3
5.8
4.5
June 30, 2020
Fiscal year ended
74.36
74.13
15.2
6.5
4.7
June 30, 2019
(Reference) Equity in earnings of affiliates: 84 million yen (FY 2020.6), 5,957 million yen (FY 2019.6)(Note) For the second quarter of the fiscal year ended June 30, 2020, provisional accounting treatments for businessintegrations was finalized. As a result, the figures for the fiscal year ended June 30, 2019 reflect the finalization of
the provisional accounting treatments.
(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

Ratio of Shareholders’ Equity
to Total Assets (%)

Net assets

Net Assets
per Share (Yen)

As of1,298,948
390,71628.8
589.29June 30,2020
June 30,2019
1,282,100
352,300
25.6
520.39(Reference) Equity: 373,556 million yen (as of June 30, 2020), 328,359 million yen (as of June 30, 2019)(Note) For the second quarter of the fiscal year ended June 30, 2020, provisional accounting treatments for businessintegrations was finalized. As a result, the figures for the fiscal year ended June 30, 2019 reflect the finalization of
the provisional accounting treatments.
(Note) On September 1, 2019, we conducted a 4-for-1 common share split. Net Assets per Share have been calculated on thepresumption that the share split was conducted at the beginning of the previous fiscal year.
(3) The Consolidated Statements of Cash Flows

Fiscal year ended
June 30, 2020
Fiscal year ended
June 30, 2019

(Millions of yen)

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

Cash and Cash
Equivalents

65,135(33,452)(34,030)

183,602

101,978(37,113)43,456

185,136

1

2. Dividends
Dividend per share (yen)Year Ended June 30,
2019Year Ended June 30,
2020
Year Ending June 30,
2021 (Forecast)

Dividends intotal (annual,Millions of yen)

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

40.00

6,333

13.1

2.0

12.00

15.00

9,508

18.9

2.7

13.00

16.00

Six Months Ended
December 31

Year Ended
June 30

Total

10.00

30.00

3.00
3.00

―

(Note) The Breakdown of Dividends for the Six Months Ended December 31, 2019: Ordinary dividend 5.00 Yen,
Commemorative dividend 5.00 Yen(Note) The figure of Dividends per share for the Year Ended June 30, 2020 is revised from 8.5 to 12.00(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.
3. Consolidated Business Forecast：For the year ending June 30, 2021 (From July 1, 2020 to June 30, 2021)(Millions of yen, except per-share data)

Six Months Ending
December 31, 2020
Year Ending
June 30, 2021

Net Sales

Change(%)

Operating
IncomeChange(%)

Ordinary
IncomeChange(%)

846,000(1.5)

40,000(11.3)

39,500(13.3)

1,700,000

1.1

77,0001.3

76,000

1.1

ProfitAttributableto Owners of
ParentChange(%)

Net Income
perShare(Yen)

26,500

(8.3)

41.80

51,0001.4

80.45

4. Others(1) Significant changes in the scope of consolidation: None
Newly consolidated: － , Excluded:－(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 Restatement: None
(3) Number of outstanding shares (Common share)① Number of outstanding shares (Treasury share included)
June 30, 2020
633,929,040 shares
June 30, 2019
633,287,040 shares② Number of treasury share
June 30, 2020
18,924 shares
June 30, 201918,720 shares③ Average number of outstanding shares during the period
June 30, 2020
633,643,173 shares
June 30, 2019
632,971,111 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 security analysts and institutional investors on August 12,
2020. 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,

2019

2020

AmountAmountAssetsCurrent assets
Cash and deposits¥172,673¥179,785

Notes and accounts receivables-trade

18,744

18,378

Accounts receivables - installment

67,417

68,293Operating loans
Merchandise and finished goods
Prepaid expenses

8,966

8,076

188,510

190,397

7,036

6,772

Deposits paid

12,986

4,377

Other

20,79021,572

(717)

(890)

496,405

496,760

262,955

264,035

Allowance for doubtful accounts
Total current assets

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

25,471

29,898Lands

318,580

325,499

1,593

1,572

Other, net
Construction in progress

5,814

1,706

614,413622,710Goodwill

17,216

15,935

Other

20,386

20,948

Total intangible assets

37,60236,883

Investment securities

16,681

17,515Long-term loan receivables

2,962

1,269

Long-term prepaid expenses

6,105

5,729

Retirement benefit assets

6,362

16,236

Deferred tax assets

19,66822,245

Lease and guarantee deposits

80,44378,624

Total property, plant and equipment
Intangible assets

Investments and other assets

Other

3,965

3,178

Allowance for doubtful accounts(2,506)(2,201)

133,680

142,595

785,695

802,188¥1,282,100¥1,298,948

Total investments and other assets
Total non-current assets

Total assets3

(Millions of yen)
As of June 30,

As of June 30,

2019

2020

AmountAmountLiabilities
Current liabilities
Notes and accounts payables - trade¥159,064¥148,226

123－

Current portion of long-term loan payables

19,721

13,201

Current portion of bonds

22,816

11,916

Payables under fluidity lease receivables

7,304

4,512

Accounts payables - other

53,30353,481

Accrued expenses

22,684

22,588Deposits received

19,407

16,806

Income taxes payables

9,841

10,969

Short-term loan payables

Provision for point card certificates

5,227

6,924

Other

22,28423,604

Total current liabilities

341,774

312,227

Bond payables

238,458

226,542

Long-term loan payables

256,777

276,191

Non-current liabilities

Long-term payables under fluidity lease receivables

4,703

191

Asset retirement obligations

23,08323,300180

94

Negative goodwill
Other64,82569,687

Total non-current liabilities

588,026

596,005

929,800

908,232

22,67523,008

Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus

15,414

16,977Retained earnings

290,034

333,980

(14)

(15)

328,109373,950173

529

Foreign currency translation adjustment

554

(865)

Remeasurements of defined benefit plans

(477)

(58)

Total accumulated other comprehensive income

250

(394)

724

218

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

Share acquisition rights
Non-controlling interests

23,217

16,942

Total net assets

352,300

390,716¥1,282,100¥1,298,948

Total liabilities and net assets

4Consolidated Statements of Income
Fiscal year ended
June 30, 2019
Amount(Millions of yen)
Fiscal year ended
June 30, 2020
Amount¥1,328,874¥1,681,947

958,347

1,200,258

370,527

481,689

307,417405,692

63,11075,997

Non-operating income
Interest and dividend income
Amortization of negative goodwill
Share of profit of entities accounted for using equity method
Commission income
Other
Total non-operating income

1,777
86
5,957
403
4,665
12,888

705
86
84
354
4,093
5,322

Non-operating expenses
Interest expenses paid on loans and bonds
Bond issuance cost
Cost of claim's liquidation
Service fees
Other
Total non-operating expenses

4,780
1,253
274
500
951
7,758

5,175
2
162
111
696
6,146

68,24075,173Extraordinary income
Gain on sales of non-current assets
Gain on step acquisitions
Gain on bargain purchase
Gain on sale of businesses
Gain on reversal of provision for loss on store closings
Gain on revision of retirement benefit plan
Gain on reversal of share acquisition rights
Compensation income for expropriation
Other
Total extraordinary income

2,085
3,906
5,646
－
－
－
0
11
123
11,771

801
－
241
494
268
5,111
220
－
425
7,560

Extraordinary losses
Impairment loss
Loss on retirement of non-current assets
Loss on sales of shares of subsidiaries and affiliates
Loss on closing of stores
Loss on disaster
Other
Total extraordinary losses
Profit before income taxes

10,305
509
－
1,698
342
873
13,72766,284

4,195
3,513
145
1,046
220
453
9,572
73,161

19,292(1,740)17,552

20,637
1,668
22,305

Profit48,73250,856

Profit attributable to non-controlling interests

1,666

553

¥47,066¥50,303

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income

Ordinary income

Income taxes - current
Income taxes - deferred
Total income taxes

Profit attributable to owners of parent

5Consolidated Statements of Comprehensive Income(Millions of yen)

ProfitFiscal year ended

Fiscal year ended

June 30, 2019

June 30, 2020

AmountAmount¥48,732¥50,856(66)

379

Foreign currency translation adjustment

1,743(1,423)Remeasurements of defined benefit plans, net of tax

(477)

430

(5)

(33)

1,195

(647)

¥49,927¥50,209¥48,289¥49,659

1,638

550

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

Share of other comprehensive income of affiliates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to：
Owners of parent
Non-controlling interests

6Consolidated statements of changes in Net Assets(Millions of yen)
Fiscal year ended
June 30, 2019
AmountShareholders' equity
Share Capital
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
Sales of shares of consolidated subsidiaries
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
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
Capital increase of consolidated subsidiaries

Increase of consolidated subsidiaries- non-controlling interests
Sales of shares of consolidated subsidiaries
Purchase of shares of consolidated subsidiaries
Total changes of items during the period
Balance at the end of current period

7

Fiscal year ended
June 30, 2020
Amount¥22,436¥22,675

239
239
22,675333
333
23,00819,975

15,414

239
－

333
43

736

－

－
(5,536)(4,561)
15,414

3
1,184
1,563
16,977

248,940

290,034(5,854)47,066(118)
41,094290,034(6,651)50,303294
43,946
333,980

(14)

(14)

(0)
(0)
(14)

(1)
(1)
(15)

291,337

328,109478(5,854)47,066
(0)
(118)
－

666
(6,651)50,303
(1)
294
43

736

－

－
(5,536)36,772¥328,109

3
1,184
45,841¥373,950

(Millions of yen)
Fiscal year ended
June 30, 2020
AmountFiscal year ended
June 30, 2019
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
Sales of shares of consolidated subsidiaries
Purchase of shares of consolidated subsidiaries
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period

8

¥244

¥173

(71)
(71)
173

356
356
529

(1,218)

554

1,772
1,772
554

(1,419)(1,419)
(865)

－

(477)

(477)
(477)
(477)

419
419
(58)

(974)

250

1,224
1,224
250

(644)
(644)
(394)

345

724

379
379
724

(506)
(506)
218

21,787

23,2171,430
1,430
23,217(6,275)(6,275)
16,942

312,495

352,300

478(5,854)47,066
(0)
(118)

666
(6,651)50,303
(1)
294

736

－

－
－
(5,536)
3,033
39,805¥352,300

43
3
1,184
(7,425)38,416¥390,716

Consolidated Statements of Cash Flows(Millions of yen)

Cash flows from operating activities:
Profit before income taxes
Depreciation and amortization
Impairment loss
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
Share of profit of entities accounted for using equity method
Gain on step acquisitions
Loss (gain) on sales and retirement of non-current assets
Gain on sale of businesses
Loss on store closings
Gain on revision of retirement benefit plan
Compensation income for expropriation
Offset payments for house rental fee with lease and guarantee
deposits
Decrease (increase) in notes and accounts receivables - trade
Increase in inventories
Increase (decrease) in notes and accounts payables - trade
Decrease (increase) in accounts receivables - installment
Increase in retirement benefit asset
Decrease in accounts payables - other
Decrease in deposits received
Increase (decrease) in other current liabilities
Increase (decrease) 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
Proceeds from dividend income received from entities accounted forusing 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
Proceeds from transfer of businesses
Payments for leasehold and guarantee deposits
Proceeds from collection of leasehold and guarantee deposits
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Payments for sales of shares of subsidiaries resulting in change inscope of consolidation
Purchase of shares of subsidiaries and affiliates
Payments for loans and advances
Proceeds from collection of loan receivables
Other, net
Net cash used in investing activities

9

Fiscal year ended

Fiscal year ended

June 30, 2019
AmountJune 30, 2020
Amount¥66,284
23,722
10,305(86)(5,646)147(1,777)
4,780(5,957)(3,906)(1,342)
－
1,698
－
(11)

¥73,161
29,391
4,195
(86)
(241)
(131)
(705)
5,175
(84)
－
2,826
(494)
1,046
(5,111)
－

2,775

4,045

3,258
(14,489)
3,924
59,700(532)(10,343)(5,583)
1,508
490
330
129,249
1,521(4,555)(27,462)
3,520
11

(38)
(5,375)(10,082)(991)(4,145)(1,261)(2,960)(137)(314)(1,624)86,060303(5,171)(20,806)
4,889
－

56

207

(362)
101,978(347)
65,135(43,835)
7,579(2,298)－(3,394)
1,163(31,562)
2,598(3,949)5,978(3,541)
1,121(5,423)(3,723)－(52)(7,936)(1,613)
19,125(481)¥(37,113)

(102)
(6)
24
(238)
¥(33,452)

(Millions of yen)

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

10

Fiscal year ended

Fiscal year ended

June 30, 2019
AmountJune 30, 2020
Amount¥－90,000(196,594)
168,647(3,616)(7,612)478(5,854)(808)¥(1,891)
32,500(20,570)98(22,991)(7,445)380(6,651)－(4,322)

－

3,569
－
(432)
43,456318
108,63975,883627(8,049)(38)(34,030)(350)(2,697)
185,136

614

1,163

¥185,136¥183,602

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.
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.
3. Information related to net sales, profit and loss, and assets, etc. by reporting segment
For the Fiscal Year Ended June 30, 2020
(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
Intersegment sales¥1,117,507 ¥491,621¥58,229 ¥1,667,357 ¥14,590 ¥1,681,947¥― ¥1,681,947

5,184

6,721

2,994

14,8996,248

21,147 (21,147)―

1,122,691

498,342

61,223

1,682,256

20,838

1,703,094 (21,147)

1,681,947

Segment income (losses)

47,311

16,992

13,57977882(2,373)75,509488

75,997

Segment Assets

619,727

235,061

227,557

1,082,345

183,3101,265,655

33,293

1,298,948

Total

Others (Note 4)(1) Depreciation expenses
18,474
4,662
5,182
28,3181,004
29,322
69
29,391(2) Increase in property, plantand equipment, and¥27,914¥2,465¥4,117¥34,496¥1,242¥35,738¥678¥36,416
intangible 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 ¥488 million adjustment to segment income is an intersegment elimination.
The ¥33,293 million adjustment to segment assets includes ¥136,744 million of companywide assets not allocated to
the respective reporting segments, and ¥(103,451) 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.
5. The segment figures for the previous fiscal year is presented based on information after considering the significant
revision of the initial allocation of the acquisition costs due to the finalization of the provisional accounting treatment
for business conbinations.

11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
Intersegment sales¥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

633,193236,345

233,104

1,102,642

123,967

1,226,609

55,491

1,282,100

Total

Others (Note 4)(1) Depreciation expenses
18,186
2,390
3,095
23,671
32
23,70319
23,722(2) Increase in property, plantand equipment, and¥39,461¥1,105¥4,886¥45,452¥1,287¥46,739¥246¥46,985
intangible 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 ¥(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.

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