Q3 Results for FY 2022
May 10, 2022
Pan Pacific International Holdings Corporation

INDEX
１

Fiscal year ending June 2022
Overview of Q3 results

2

Appendix1Explanatory notes for these materials

1. The monetary values presented in these materials are rounded off 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 1stquarter of fiscal year ending 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 current consolidated fiscal year. Following the determination ofthis provisional accounting treatment, comparative analysis has been conducted using retroactively adjusted figures.

Unit：Yen

USD
U.S. dollar

USD(Gelson’s)

P/L

B/S

P/L

B/S

FY2021105.55103.52-

FY2022111.47115.02114.15

SGD
Singapore dollar

THB
Thai baht

P/L

B/S

P/L

B/S

-

76.93

78.00

3.38

122.41

82.80

85.18

3.41

HKD
Hong Kong dollar

P/L

B/S

3.44

13.62

13.35

3.43

14.33

14.75

2

Fiscal year ending June 2022
Overview of Q3 results3

Financial Results for Q3※３[Period: July 1, 2021 – March 31, 2022]
Previous year

January 1, 2022 – March 31, 2022

Previous year

(Sales ratio)（Sales ratio）(Sales ratio)

Actual4,153

Net sales

1,188

Gross profit

Operating profit
Recurring profit
Net income
EPS (Yen)*2

Actual

4,528

1,325

(28.6%)(29.3%)(24.4%)(25.0%)(4.2%)(4.3%)(4.7%)(5.1%)(3.0%)(3.5%)

1,012

SG&A

Q3 Results

176
194
126

19.86

1,130
194
232
158

26.56

Change

YoY

+375

+9.0%

+137

+11.5%+118+11.7%+19+10.7%+38+19.8%+32+25.7%

6.70+33.7％

Actual

12,682
3,699

Q3 Cumulative

July 1,2021 – March 31, 2022
Actual(Sales ratio) *1

13,705

4,003(29.2%)(29.2%)(23.9%)(24.6%)(5.3%)(4.6%)(5.3%)(4.9%)(3.6%)(3.4%)

3,031
669
675
452

71.34

(Unit: 100 Million yen)

3,372
631
677
460

75.92

ChangeYoY+1,023

+8.1%

+304

+8.2%

+342

+11.3%(38)(5.7%)

＋2

+0.2%

＋8

+1.7%

4.58

6.4％

*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 fiscal year ending 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 the case without this accounting standard, sales, gross profit and SG&A expenses decreased by 6.3 billion yen and gross profit margin decreased by 0.3 %.
* 2. 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, net income per share would be 24.96 yen for the Q3 results for the fiscal year ending
June 30, 2022, and 72.5 yen for the cumulative Q3 results.

4

Executive Summary

1. Consolidated Business Results• Q3 results were up 37.5 billion yen in sales and 1.9 billion yen in operating profit compared to the previous Q3. In Japan,
despite restrictions on human flow due to the pre-emergency measures to prevent the spread of the COVID, both sales andprofits increased (record-high sales and operating profit in 3Q).






Sales: In addition to new store openings/format conversions in Japan and overseas and the new consolidation of
Gelson's, domestic retail existing store YoY sales landed at 100.7%, continuing to see the sales growth from Q2.

Operating Profit: Steady effects are being seen from the initiatives set forth at the beginning of the fiscal year such as
strengthening PB with originality, improving pricing accuracy and inventory turnover ratio, to increase the “SomethingNew” concept as announced in Q2. Successfully improved profitability, while increasing store appeals anddifferentiation from competitors.
Gross profit margin improved by +0.3% compared to previous Q3 in the DS business (-0.3% in 1H) and by +0.2% in the*Gross margins are adjusted for new revenue recognition standard.
GMS business (-0.9% in 1H).

The GMS business increased existing store operating profit by 0.6 billion yen from the previous Q3 due to improved
gross profit margins.

• No change in earnings forecast. We will continue to focus on strategic measures in Q4 with an eye on further growth in thenext fiscal year and beyond, while working to achieve the full-year forecast of 85 billion yen in operating profit.

2. Other Results• In the financial business, preparations for cost reduction/earnings capture, such as preventing outflow of earnings fromother companies' payment services, etc., are steadily progressing.

• Completed the acquisition of Japan Asset Marketing Co.,Ltd. as a wholly-owned subsidiary, and the company is now wellpositioned to improve the efficiency of capital investment.

5

Discount Store Business
FY2022 Q3<100 Million Yen>

Both sales and operating profit continued to increase in Q3.
Strategic measures such as strengthening PB and improving
the inventory turnover ratio also showed steady results.

Change in Sales

 In addition to the increase in sales due to new stores/format
conversion, existing stores also contributed to growth at 100.9%
YoY.

 Strengthening PB, a strategic measure to enhance differentiationand improve profitability, continued to be successful, and grossprofit margin improved further from Q2.
0Q3
FY2021

FY2022 Q3<100 Million Yen>

Existing
StoresNew
Stores(DQ)

NewStores(UDR)

Head Office
Expenses& Adjustments

Q3
FY2022

Change in Operating Profit＜Existing stores gross profit margin YoY＞
Q1 -0.7% → Q2 +0.1% → Q3 +0.5

 From Q3, we started to improve inventory turnover ratio to create
an attractive buying space where customers can always feel
“Something-New”. Inventory for the existing store was
successfully decreased by 10.2 billion yen from the previous year.
 SG&A expenses remained within budget despite an increase inutility costs.

▶ Gross profit margin transition (comparable stores)
25.0%

1.0%

24.5%

0.5%

24.0%
0

0.0%

-0.5%

23.5%
Q3
FY2021

Existing
StoresNew Stores(DQ+UDR)

Head Office
Expenses& Adjustments

Q3
FY2022

23.0%

1.5%

-1.0%
7月
Jul

Aug
8月

Sep
9月

Oct
10月

Nov
11月

22年6月期
FY2022

Dec
12月

Jan
1月

Feb
2月

Mar
3月

Gross
前年比profit margin YoY

-1.5%

6

Discount Store Business：
Efforts to differentiate stores and improve their attractivenessStrenghthen PB/OEM

Since the rebranding in February last year, the private brand has
been strategically promoted as a measure to strengthen
differentiation from national brands and other retailers andimprove profit margins.

PB sales of the DS business grew significantly in Q3, increasing
by 19.9 billion yen YOY (+22.9 billion yen for PPIH as a whole). In
particular, gross profit grew to 8.1 billion yen (+9.8 billion yen for
PPIH), becoming the largest driver of gross profit growth for theentire group.
 The development of hit products with originality,
improvement of affordability, and expansion of recognition
through marketing measures both inside and outside stores
were successful.

We will continue to expand its sales in the next fiscal year andbeyond as a key strategic measure (details will be announced at
the full-year results announcement).

▶ Domestic DS business PB/OEM sales composition ratio
15.0%
14.0%
13.0%
12.0%
11.0%
10.0%

Improve inventory turnoverControl inventory growth by monitoring each product moreclosely in both sales (i.e., exit) and purchases (i.e., entry) tocreate an attractive buying place with something new at all
times.

We reduced the inventory at existing stores by 10.2 billion yen
and improve the annual turnover ratio by 0.36 ppt as of the endof Q3 compared with Q3 of the previous fiscal year.

▼ Inventory Control Initiatives〈Exit〉 Visualize slow-moving inventory at individual stores byutilizing indicators such as “interest-expiration-date”* andpromote cash conversion. Continuous efforts will be made to
expand sales measures.
〈Entrance〉 Company-wide reduction of orders for lowturnover products. Reduced wasteful inventory by reviewing
the number of display faces, their depths, and the display itself.

Purchasing

Sales

FY2022
22年6月期

FY2021
21年6月期

7月Aug8月
10月Nov
11月Dec
12月Jan
1月 Feb
2月 Mar
3月 Apr
4月 May5月 Jun6月
Sep9月OctJul▲
Use indicators such as
interest expiration dates
Early visualization/identification*Our original management
standard for productnewness, modeled after the"best-before" date.
Set for non-food items.

High popularity/high turnover(⇒ Strengthening
purchasing and sales)

Low popularity/low
turnover(⇒ Restriction ofpurchasing and promotionof conversion to cash)（Example ofMeasures）

7

Discount Store Business:
Strengthening customer contact points with majica app as a starting point

The company will work to increase the number of majica app members in order to strengthen points of contact withcustomers and promote understanding of purchasing behavior. The number of members reached 9.16 million as of March
31,2022, and from the next fiscal year, CRM measures will be fully strengthened.

Strengthen customer points of contact and promote better
understanding of customers by using majica app as a startingpoint Promote customer convenience and improved value withpoints/coupons through the majica app to strengthen
customer contact and promote usage.

 CRM measures tailored to customer attributes can be
implemented, as understanding of purchasing behavior has
also improved.

 The number of members increased to 9.16 million at the end of
March. The company will achieve its immediate target of 10
million members as soon as possible, and will begin fullfledged development of CRM in the next fiscal year. (Details will
be announced at the full-year results announcement)
At the end of August, app will be updated with enhanced
functions to further increase the number of members andpromote usage.

Existing "payment" and "sales promotion/information" functions
will have UI improvements and additional functions (e.g., giftcode function, etc.)

New functions such as "review function and product search" will
be added (details will be announced at the full-year results
announcement).

Target▶ Number of majica app members

FY2022
March 10 Mil
9.16 Mil

1000万人10Mil9900万人MilFY2021
6.84 Mil

8800万人Mil
7700万人Mil
6600万人Mil
5500万人MilFY20203.82 Mil

4400万人Mil
3300万人Mil

Jun
6月

FY202020年6月期

Sep
9月

Dec
12月

Mar
3月

Sep
9月

Jun
6月

21年6月期
FY2021Dec
12月▶ Analyze purchasing status of app members

Mar
3月

Jun
6月

22年6月期
FY2022Comparison of purchases of the members
at the end of FY2020（Sales YoY）
Results of Jul to Feb

Members at theend of FY2020

3.82 million+7.8%

FY2021 FY2022

From this fiscal year, we havebeen able to grasp more
precisely than before thecontribution to sales made by
the increase in members andthe purchasing status bysegment.
⇒Confirmation that app
members are gradually
becoming loyal customers.

8

GMS Business
FY2022 Q3<100 Million Yen>

0

Q3
FY2021

FY2022 Q3<100 Million Yen>

The gross profit margin improvement initiated in the Q3 tookeffect. Sales and operating profit at existing stores in Q3
turned to YoY growth.

Change in Sales

 The GMS business is evolving to individual store management,
product lineups that correspond to the trade area, and a smallhead office, and is making progress toward achieving an
operating profit increase of 20 billion yen (compared to FY2019)
in FY2024. (We will report on the way forward in the August midterm corporate plan announcement.)

Existing
StoresClosedStores etc.

Head Office
Expenses& Adjustments

Q3
FY2022

Change in Operating Profit

 In the 3Q, existing store sales grew by 100.3% YoY, and thecompany's measures to improve gross profit margin were also
successful, resulting in the first positive operating profit growthfor existing stores this term.
 The gross profit margin YoY improved significantly from
-1.4% in 1Q to -0.9% in 2Q to +0.1% in 3Q.

 One store was renovated (8 stores planned for the full year). Shiftto small-scale renovations will be undertaken from 4Q to thenext fiscal year.

▶ FY2022 GMS Business existing store performance
Sales

（YoY）

0

Gross Margin

Q3
FY2021

Existing
StoresClosedStores etc.

Head Office
Expenses& Adjustments

Q3
FY2022（YoY change）

Operating
Profit（YoY change）

Q1

Q2

Q3

Cum.

98.1％

99.5％

100.3％

99.3％

-1.4％

-0.9％

+0.1％

-0.7％

-2 bil-2.6 bil＋0.6 bil-4 bil9

GMS Business:
Profit Improvement Initiatives for strengthen individual storesFirst Half

Decline due to internal and external factors
The sluggish performance of high gross margin categories due tounfavorable weather in August, and the prior price promotion in
the process of transitioning to individual store management, etc.

Initiatives from Q3

Optimize pricing for each individual store
With the shift to individual store management, each store has
implemented price control in consideration of the trade area andcompetition, instead of a uniform pricing strategy.
Sales schedule management for each individual store
Each store is now able to manage purchasing and inventory in linewith changes in the business environment, and the late-season sales
scheme for seasonal apparel has been particularly successful.
Strengthen sales of high value-added products based on the
Meister system
Customer service license certification for employees who have
deepened their product knowledge in order to communicate thevalue of high value-added and PB products and actively expand
sales.

The majority of stores achieved the gross profit margin target,
which was revised upward by store from Q3.
From Q4 to next fiscal year, we aim to further expand earnings by putting
each measure on track, improving headquarters efficiency, streamlining
head office functions, and fundamentally reviewing product measuresand product mix (details to be reported at the end of year financial
results announcement).

▶ YoY change in gross margin by product （Existing stores）
6.0%
4.0%
2.0%
0.0%
-2.0%
-4.0%
-6.0%

Clothing
衣料
Jul
7月

Aug
8月

Housing
住居関連

Nov 12月
Dec
Oct 11月
Sep 10月
9月

Food
食品
Jan
1月

▶ Gross margin target andratio of stores achieved (Existing stores)〈% of stores achieved 〉
80.0%

Feb
2月

〈Gross margin
target〉
29.0%
28.0%

60.0%

27.0%

40.0%

26.0%
25.0%

20.0%
0.0%

Mar
3月

24.0%

Jul
Jun
7月 Aug
8月 Sep
9月 Oct10月 Nov
11月 12月
1月 Feb
2月 Mar
3月 Apr
4月 May5月 6月
Dec JanGrossmargin
期初粗利率予算
forecast for FY2022

Upward
上方修正分
revision

23.0%%
of stores
達成店舗率
achieved

10

Overseas BusinessContinued to increase sales and profits led by new store
openings in Asia, and contribution from Gelson's. Gross profit
margins also improved in each country, mainly through thePPIC.

FY2022 Q3 Change in Sales<100 Million Yen>

■Asia Business Business expansion continued with the opening of 4 new storesin Oct-Dec. (In Q4 will be 3 new stores) The operating margin at existing stores are maintained at over
10%. Gross profit margin also improved (+1.3% YoY) by utilizing
PPIC and strengthening PB/OEM.

0

Q3
Q2
FY2021
FY2021

FY2022 Q3<100 Million Yen>

Asia
Asia

North
America

Change in Operating Profit

Gelson’s

Q3
Q2
FY2022
FY2022

 To capture new revenue opportunities, we are developing new
business formats (see next page for details).

■North America Business Despite the cost inflation environment, gross profit margin
continued to increase YoY (+0.6% in Q3) as in Q2 withappropriate pricing policies, etc.

 Gelson's continued to make a significant contribution (figures
are before deducting goodwill amortization).

■Initiatives to expand value chain by PPIC By procuring diverse and high quality Japanese products
directly from upstream and shipping them directly to overseas
countries, it functions as a source to strengthen the
differentiation of overseas business and improve profitability.

0 Continue to expand initiatives (e.g., signing a partnershipagreement with Okinawa Prefecture, trial shipments of nearby
products from Sendai Port, etc.) and contribute to improving
profitability in each country.

Gelson’s
Q3
Asia
North
Q3
Asia
Q2
Q2
FY2021
America
FY2022
FY2021
FY2022*1. Figures for North America are the simple aggregate for DQ USA, MARUKAI. Results are for the period from April to December 2021, while Gelson’s is from July 2021 to March 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 to December 2021.
*3. Change in Operating Profit for Gelson’s does not include the amortization of goodwill(About 2.1 billion yen)11

Overseas Business：
Initiatives to improve profitability and expand profit-earning opportunities
Initiatives to Improve Profitability▶ Gross profit margin difference from the previous year
by overseas business (Existing stores )

Asia

HK

Previous
3Q

Current
3Q

Difference

35.3％

36.3％

+1.1％

34.6％

35.9％

+1.3％

SG

35.1％

36.4％

+1.3％

Oversea

31.9％

32.9％

+1.0％

North America

30.7％〈Improvement Factors〉

31.8％

+1.1％

※Excluding Gelson’s Improvement of product procurement capability andlogistics costs by strengthening PPIC activities andexpanding business Strengthen PB・OEM products

Business format development
to expand profit-earning opportunities

While offering high-quality Japanese foods as a "Japan
Brand Specialty Store," a new business format wasdeveloped to create further demand and expand
opportunities for customers to visit the store.
As a "food and beverage, and product retailer" that
redefines the product retail business, a conveyor-beltsushi restaurant and a rice milling and rice ball store havebeen opened in the tenant section.

▶ Kaiten Sushi (conveyor
belt)

Offers authentic sushi made withhigh-quality ingredients such as
Japanese rice under the brandname of "SENSEN SUSHI".
▼OP Mall（HK）▶ Rice milling･Onigiri (riceballs)

Milling rice and selling rice ballsby order in a way that is easy andmaximizes the appeal ofdelicious Japanese rice.
▼Orchard Central（SG）〈Sales Ratio〉Q3 cum. 8.0％（Diff. from previous Q3 +5.8％）

Preparations are underway for further business scale expansion and profitability improvement in the next fiscal year
and beyond. (Specific strategies and target figures for the mid-term will be reported in August)

12Financial business: Progress after Q1 announcement
Steady preparation for cost reduction/revenue capture by proactively integrating payment functions
into the value chain








Role/strategic positioningof the finance businessWith the increase in cashless payment, theincrease in external commission payments byother companies' services and the hampering ofpurchase data analysis may become major
concerns. We will proactively incorporate thepayment function into our value chain,considering it as a business opportunity andprofit-making opportunity.
＜Specific objectives＞

Reduce outflow of payment fees and purchasedata
Reduction of hurdles to digital initiatives

Acquire additional revenue opportunities (e.g.,commission income from external use of majica,
revenue from financial services, etc.)

Progress after Q1 results announcement▶Start of merchant management business(June～)• Obtained international brand license as initially planned• UCS will start the merchant management business, which
had been outsourced to an external company, and reduce
settlement fees charged by external companies.

(Cost reduction effect: FY 2022: approx. 100 million yen⇒ 1.3 billion yen for the full year in FY 2023)▶Preparation of new services to generate additional revenue(FY2023 2nd Half～)• Enhance the convenience of the payment function of theapp with an instant credit card issuance function.
• Earn settlement commission income from external use of
majicaVISA prepaid and revenues from various new
financial services.

13

Status of major assets, liabilities and net assets
June 2021 *2
Current Assets

Actual4,954

Cash and
Deposits

655

2,034

Products

Buildings, etc.
Land

Intangible Assets
Lease andGuarantee
Deposits

Total Assets

Actual

1,575

Account
receivableinstallment

Non-Current
Assets(Unit: 100 Million yen)

※2

8,747
2,615
3,174
787
739

13,701＜Status of major assets＞
・Non current asset▶ Tangible fixed assets ： 655.5 billion yen(+11.7 billion yen)・ Investment related to store openings, etc.
33.8 billion yen
・ Depreciation and amortization
23 billion yen

March 2022

4,692
1,478
534

2,062

8,836
2,636

Change

(262)
(98)

(121)
28

88
21

3,155

(19)

731

(8)

811

13,52825(173)

June 2021 *2
ActualTotal Current
Liabilities

Accounts PayableTrade

Short-Term
Liabilities

*1

3,536
1,500
577

(Unit: 100 Million yen)March 2022

Actual

3,225
1,563

2,726

686

6,495

Long-Term
Borrowings

2,715

2,758

Total Liabilities

9,315

9,720

Liabilities and Net
Assets13,701

13,528Net Assets＜Status of major liabilities＞▶ Interest-bearing debt ： 586.1 billion yen(+52.9 billion yen)
▶ Net worth: 373.5 billion yen(Capital adequacy ratio: 27.6 ％)4,386＜Others＞

63

(199)

5,779
2,040

(310)

378

Total Noncurrent
Liabilities

Corporate Bonds

Change

3,808

715
43

405

(578)
(173)

▶ Net D/E ratio: 1.17x▶ ROE： 15.5 ％(annualized)*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.

14

Status of cash flows and capital expenditure▶ Cash Flow Status(Unit: 100 Million yen)Previous year
ActualBalance at Beginning of Period

Actual632

Cash Flows from Operating
Activities(305)

Cash Flows from Investing
activities(102)

Free Cash Flow

225

Cash Flows from Financing
Activities

2,061

Changes During the Period
Balance at End of Period

1,836

9 months ended Mar 31, 2022

*1

327

1,609
646

(322)
(520)
(96)

1,513
324

Change

(227)

14

(17)

(418)

(322)

(549)

(3)

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

▶ Status of capital expenditures
Capital Expenditures

305

378

+73

＜Operating Cash Flows＞▶ Positive items: 66.8billion yen in income before

income tax, 28.2 billion yen in depreciation andamortization, and increase of 5.3 billion yen inaccounts payable.

Negative items: decrease of 6.3 billion yen inallowance and 36 billion yen in income taxes paid,
resulting in 64.6 billion yen of cash in.

＜Investment Cash Flows＞▶ 33.8 billion yen for tangible fixed assets acquisition

associated with store openings and 3 billion yen for
intangible acquisition, resulting in 32.2 billion yen in
cash out.

＜Financing Activity Cash Flows＞▶ Income from the issuance of bonds of 79.6 billion yen

contributed to the increase, while 80.9 billion yen in
repurchasing of own stocks, 10.3 billion outflow due to
TOB of JAM and decrease of 22.6 billion yen for theredemption of bonds, resulting in 52 billion yen of cashout.

＜Breakdown of Q3＞▶ DS business 10.5 billion yen , GMS Business 8.5 billion yen,Overseas business 8.7 billion yen,
IT 4.2 billion yen, Others 5.9 billion yen

15

Shareholder Returns
1. Dividend
Dividend(Yen)

Payout ratio(%)

20.0

Annual dividend

配当性向(右軸)(left axis)

15.0

20.0

Payout ratio

年間配当(左軸)(right axis)

15.0

10.0

15.0

5.0
0.0

3.1

3.5

3.9

4.4

4.5

5.0

5.5

6.5

8.0

16.0

10.0

16.5

*est.

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

10.0
5.0
0.0

2. Shareholder Benefits

・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.

 Dividends increased for
18 consecutive terms
 FY2022(est.) 16.5 yen*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.

*For the fiscal year ending June 30, 2022, thefigures are estimates.

＜How to receive benefits＞

Enter the gift code enclosed with dividendrelated documents into the app.

+2,000 yen*You will need 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 determined semiannually.

XXXX

XXXX

※You need a membership registration and a majica app.
※The gift code function will be updated in August.

16

DS/GMS Business Overview in April ( Flash Report)
Existing store YoY in April landed at 102.4% for the DS business and 99.6% for the GMS
business, maintaining the Q3 trend.
▶ Year on year trend (existing store)
1Q

Unit：%

2Q

Feb

Jan

Mar

DS

Sales

99.8 102.0 101.6 98.6

GMS

Sales

98.1

Business

Business

Apr

102.2 102.4

99.5 101.2 99.9

99.8

99.6

▶ Trends in new positive COVID-19 cases and existing store sales
105.0%

250万人
Pre-emergency measures 2.5（Jan 21～Mar 21）

State of Emergency（Jul 12～ Sep 30）

200万人
2
150万人
1.5

100.0%

100万人
1
50万人
0.5

95.0%

7月
Jul

8月
Aug

9月
Sep

10月
Oct

11月
Nov

New positive
新規陽性者数
Covid19 cases

12月
Dec

1月
Jan

DS

2月
Feb

3月
Mar

GMS

4月
Apr

万人 casesMillion■ DS business Existing store sales in April increased YoY for all corporations.
Sales recovered in urban areas, in station-front stores, andduring the nighttime hours after 9:00 p.m.

 Trendy items such as confectioneries, alcoholic beverages,
and cosmetics, as well as products that are popular on social
media, drove sales.
 Demand for travel bags and outdoor goods increased, driven
by a long holiday.
 Gross profit margin improved by 1.7ppt YoY at the store level
due to growth in the non-food products category.

■ GMS business Clothing sales increased due to recovery in sales of spring
apparel and sales to seniors.

 Food sales declined due to shrinking demand foralternatives to eating out, but sales per customer
increased due to strengthened sales promotion andholding events at individual stores.

 Measures to improve gross profit margins continued to beeffective and it has improved.

* Data compiled from the Trend in the number of newly confirmed cases (daily) on Ministry of Health, Labour and Welfare website, Coronavirus (COVID-19) section.

17

Appendix18

Q3 cumulative information by corporation▶ Domestic retail

Don Quijote

FY 2021Q3

FY2022Q3

FY 2021
Q3

FY 2021
Q3

FY 2021
Q3

24.5%

23.7%

(0.8%)

25.6%

24.6%

(1.0%)

33.6%

32.8%

(0.8%)

Operating profit

130

166

36

52

43

(9)

14

24

10

235

170

(65)

SG&A

Operating profit
ratio
Total Assets

1,106
2.6%

3,081
1,753

Net Assets

1,096

(10)

354
303

351
308

(3)
6

347
333

388
364

41
30

3.2%

0.6%

3.6%

2.9%

(0.7%)

1.0%

1.5%

0.5%

1,182

(571)

589

610

21

9

23

14

3,075

▶ Overseas retailNorth America

(6)

*2

879

FY 2021 Q3(Cumulative)

FY2022 Q3(Cumulative

ChangeFY 2021 Q3(Cumulative)

241

554

312

120

FY2022 Q3(Cumulative667▶ Non- retail

58

Japan Asset Marketing

ChangeFY 2021 Q3(Cumulative)

50

63

ChangeFY 2021 Q3(Cumulative)

(7)

140

1,357

214

3,843

(27)

(Unit: 100 Million yen)UCS

FY2022 Q3(Cumulative

34.7%

34.8%

0.1%

38.5%

35.5%

(3.0%)

100.0%

100.0%

0.0%

Operating profit

52

110

58

34

19

(16)

58

50

(8)

10

13

3

189

443

254

86

151

66

5

6

1

Operating profit
ratio

6.9%

7.5%

0.6%

10.0%

3.8%

(6.2%)

35.4%

31.8%

(3.6%)Net Assets

285

151

(134)

88

141

54

1,149

1,197

48

Total Assets

378

809

430

303

459

156

1,627

1,617

(9)

130

7.0%

1,670

101

141

Change

5.8%

56

(6)

140

(1.6%)

37.8%

SG&A

158

1,143

4.7%

32.0%

170

143

164

FY2022 Q3(Cumulative

3,870

(16)

Gross profit ratio

Gross profit

489

*3

609

6.3%

1,007

(81)

755

710

346

Asia

19

1,022

1,176

(154)

*1

Sales

1,466

898

1,257

3,591

Change(0.2%)

26

216

3,745

FY2022
Q3

24.5%

1,262

1,573

Change

24.7%

1,236

31

1,357

FY2022Q3Gross profit ratio

Gross profit

1,480

Change

UNY

5,002

156

1,449

FY2022
Q3

UD Retail

*1

Sales

5,158

ChangeNagasakiya(Unit: 100 Million yen)

141
129

1
1

(2)

9.0%

2.0%

113

12

1,578

(92)

*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 endingon 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 December 2021, while Gelson’s is from July 2021 to March 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 December 2021.

19

Q3 Segment Information(cumulative) by business▶ Segments Overview [Period: July 1, 2020 – March 31, 2021]

External Sales

Inter Company
Sales
Total

Segment Profit

Discount StoreBusiness

8,687
55

8,741
452

GMS
Business

3,424
62

3,486
140

Tenantleasing

OthersExternal Sales

Inter Company
Sales
Total

Segment Profit

9,885
57

9,942

519

GMS
Business

3,267

88

3,354
88

*3

Total

106

12,682474

140

12,842

9105

Tenantleasing

34

(31)

-

12,682(160)

12,682

160

(160)

666

3

-

669

(Unit: 100 Million yen)
*3

Total

Adjustment

445

108

13,705455

140

13,89178

Consolidated*1*2

Others9(Unit: 100 Million yen)

Adjustment465▶ Segments Overview [Period: July 1, 2021 – March 31, 2022]
Discount StoreBusiness

*1
*2

32

(55)

Consolidated-

13,705(186)

13,705

186

(186)

630

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 the 1stquarter of fiscal year ending 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.

-

631

20

Breakdown of SG&A

[Period: January 1, 2022 – March 31, 2022]

3 months ended Mar 31, 2021
Actual

SG&A

1,012
384

Salaries and allowances

Ratio

Other

[Period: July 1, 2021 – March 31, 2022]

SG&A

Salaries and allowances

Rent

Commission paid
Depreciation

Other

1,137
396
428
190
879

439

23.9%

9.0%
3.1%
3.4%
1.5%
6.9%

25.0%

114.2%

3.0%

103.2%

3.1%

78

103.7%

1.7%

335

YoY

111.7%

9.7%

141

7.1%

Ratio

Ratio

137

1.5%

295

3,031

1,130

3.3%

9 months ended Mar 31, 2021
ActualActual3.2%

63

Depreciation

3 months ended Mar 31, 2022

9.2%

136

Commission paid

*1

24.4%

133

Rent

(Unit: 100 Million yen)

122.7%

7.4%

113.5%(Unit: 100 Million yen)

9 months ended Mar 31, 2022

Actual

3,372
1,306
408
437
225
996

Ratio

24.6%

9.5%
3.0%
3.2%
1.6%
7.3%

YoY

111.3%

114.8%
103.0%
102.0%
118.6%
113.3%*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 offiscal year ending 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.

21

Overview of results by consolidated businesses[Period : July 1, 2021 –March 31, 2022](Unit: 100 Million yen)

9 months ended Mar 31, 2021

Discount store business*1

Home electrical appliances

Actual

8,687
679

Ratio

68.5%
5.4%

9 months ended Mar 31, 2022

Actual

9,885
654

Ratio

72.1%
4.8%

YoY

113.8%
96.3%

Miscellaneous household goods

1,681

13.3%

1,948

14.2%

115.9%

Watches and fashion merchandise

1,100

8.7%

1,048

7.7%

95.3%

3,441

Food products

467

Sporting goods and leisure goods

755

North America Business

348

Asia Business
Other

GMS business
Clothing*1

Household goods
Food products
Other

Tenant leasing business
Others
Total

*1
*2

216

27.1%
3.7%

3,653
490

26.7%
3.6%

104.9%

3.6%

140.3%

6.0%

1,466

10.7%

1.7%

137

1.0%

2.7%

488

106.2%

194.1%
63.6%

3,424

27.0%

3,267

23.8%

95.4%

546

4.3%

506

3.7%

92.7%

406

3.2%

367

2.7%

2,437

19.2%

2,376

17.3%

465

3.7%

445

3.2%

12,682100.0%

13,705100.0%

36

106

0.3%

0.8%

18

108

0.1%

0.8%

90.4%

97.5%
51.5%

95.8%

101.6%
108.1%*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.

22

Store network
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

Apr

May

6月

Rifu
(Miyagi)

Furukawa(Miyagi)

Kirakira Donki
DiverCity
Tokyo Plaza(Tokyo)2 stores（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.

Full Year Estimates

Opening :22 stores

Minamiguchi

Renovation :30 stores(Hiroshima)(NewGMS)

Overseas

Mar

Funabashi

Koshi

Matsunaga

Q4

Karatsu（Saga)(Kumamoto)

*1

GMS

Nov

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

Q2

Kisogawa(Aichi)1 storeRenovation:
8 stores1 storeOpening :11 stores
Renovation :6 stores

April 2021 ～ March 2022
＝ Format conversion, NewGMS

23

Store network
No. of retail stores in Japan

Discount Store Business(MEGA) Don Quijote UNY
Picasso etc.

GMS BusinessTotal (Japan)

FY2021

430

444

135

139

225

Don Quijote

MEGA Don Quijote

FY2020

*1

*2
*3

226

41

52

29

27

150

139

580

583

No. of retail stores abroad

Q1

450

226
140
54
30

138
588

FY2022
Q2

Q3

229

234

457

140
57
31

137
594

463

140
58
31

136
599

Zhongxiao Xinsheng(Taiwan)Amoy Plaza(Hong Kong)

FY2021

North America Business

38

65

MARUKAI

10

10

10

10

10

Gelson’s

-

27

27

27

27

DQUSA

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

4

24

Q1

65

4

24

Q2

65

4

24

Q3

65

4

24

Asia Business

11

19

21

23

27

PPRM (HK)

2

7

7

8

8

7

PPRM (SG)2

DONKI Thailand-

PPRM (Taiwan)-

PPRM (Malaysia)
Total (Overseas)

Jan

4

24

QSI

Macau PRRM(Macau)Jan

FY2022

FY2020

Total

*4

-

8
2

1
1
-

10
2

1
1
-

10
2

1
1
1

11
4

1
2
1

49

84

86

88

92

629

667

674

682

691

*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.

24

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 Q4 results for the fiscal year ending June 2022 (Scheduled)
Date of announcement: August 12 (Friday), 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.

25

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/