Q2 Results for FY 2024
February 13, 2023
Pan Pacific International Holdings Corporation

Contents
１ Overview of Q2 results2

Initiatives for Q3 and onward

3

Appendix

Explanatory notes for these materials

1. The Amount values presented in these materials are rounded to the nearest full unit.
2. The following abbreviations are used in these materials: Pan Pacific International Holdings (7532) as “PPIH,” Don Quijote Co., Ltd. and its stores as “DQ,” UNY Co., Ltd. as “UNY,” UDRetail Co., Ltd. as “UDR,” Singapore as “SG,” Hong Kong as “HK,” Thailand as “TH,” Taiwan as “TW”, Malaysia as “MY”, Macau as “MO,” and Group as “GP.”3. PPIH applies the “Ordinance on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements,” but there are sections in thesematerials where the account titles and other information have been simplified to an extent where they do not change the intent or meaning of thecontents.

4. The exchange rates used for overseas operations are shown below. (Gelson's fiscal year ends in June, so the exchange rate is different. )Unit:YenFY2023
FY2024

USD

P/L

U.S. dollar

135.31142.61

USD

B/S

144.81149.58

P/L(Gelson’s)

139.65145.87

SGD

B/S

132.70141.82Singapore dollar

P/L

97.13

105.79B/S

101.07109.47

THB

P/L

Thai baht

3.79

4.07

*Exchange RateP/L uses average exchange rates for the applicable period ( Gelson’s is from July to December, others are from April to September).
B/S are based on the exchange rate at the end of December for Gelson's and at the end of September for all other corporations.

HKD

B/S

3.87

4.09

Hong Kong dollar

P/L

17.24

18.20

B/S

18.44

19.10

TWD

Taiwan dollar

P/L

4.50

4.56

B/S

4.57

4.65

1

Overview of Q2 results

2

Q2 Executive summary
1.

Consolidated results overview

 Achieved record profits for 1H
The first half-year results for FY2024 exceeded 1 trillion yen in sales for the first time for a half-year. Record
high profits were achieved in both 1H and Q2, with sales of 1,047.6 billion (up 69.1 billion or 7.1%),
Operating income of 75.5 billion (up 18 billion or 31.4%) and Operating income margin of 7.2% (up 1.3%),
driven by domestic retail sales, which continued to grow.

 The overall performance was driven by the DS business which responded to inflation with cost
performance, developed a merchandising strategy based on a well balanced product lineup, increased
duty free sales, and captured demand for outings and events.

 Gross profit: Gross profit was 331 billion (up 28.6 billion YoY) and the gross profit margin was 31.6%(up 0.7% YoY), above forecast, as a result of growth in PB and OEM both in Japan and overseas, as wellas ongoing inventory control.


SG&A: Despite strategic investments, the SG&A ratio is below both the previous year and the forecast
at 24.4% (down 0.6% YoY) due to sales growth and SG&A control, including a review of appropriate
staffing levels in Japan and overseas.

 Full-year forecasts revised upwards; medium-term management plan expected to be brought forward by
one year.
The company expects to achieve the "Visionary 2025" medium-term management plan targets of 2 trillion
yen of sales and 120 billion yen of operating income one year ahead of schedule, by further increasing its
earning power through reform of its profit structure, while focusing on investment in growth and humanresources development. (For more information, see page 5)3

Earnings summary for FY2024 Q2[Period: July 1, 2023–December 31, 2023](Unit:Billion yen, unless otherwise indicated)

FY2024 1H
Earnings Forecast

1H Results
FY2023
Amount(Sales ratio)

FY2024
Amount(Sales ratio)*1
YoY Change

Amount%AmountProgress

Net sales

978.4

1,047.6

+69.1

+7.1%

1,031.8

101.5％

Gross profit

302.4

331.0

+28.6

+9.4%

321.9

102.8％

+10.5

+4.3%

263.0

97.1％

58.9

128.2％

56.0

131.4％

SG&A
Operating income
Ordinary income
Profit attributableto owners ofparentEPS (yen/share)(30.9%)(31.6%)(25.0%)(24.4%)(5.9%)(7.2%)(5.8%)(7.0%)+16.4(3.8%)

48.2(4.6%)+11.4＋31.1%

35.0

137.8％

61.67

80.80

+19.13＋31.0％

58.67

137.7％

245.0
57.5
57.2
36.8

255.5
75.5
73.6

+18.0

＋31.4%＋28.6%

4

Full-year forecasts
 The Operating income forecast for the full year has been revised upwards to 130 billion(up 19 billion yen from the initial forecast).
 The breakdown of each business segment will also be changed based on progress up to the first half of the year.

(Unit:Billion yen,unless otherwise
indicated)

Full year forecast(Initial)
AmountFull year forecast (revised)

Sales
Ratio

AmountNet sales

2,062.1

100.0％

Gross profit

648.3

31.4％

SG&A

537.3

26.1％

Operatingincome111.0

Ordinary
incomeChangeSales Ratio

Ratio toinitialforecast＜ Operating income forecast by businesssegment＞(*Change from initial forecast )■ DS business: 79 billion yen(up 20 billion yen)

2,070.0+7.9

100.0％

100.4％



653.0

+4.7

31.5％

100.7％



523.0(14.3)

25.3％

97.3％

5.4％

130.0

+19.0

6.3％

117.1％

107.4

5.2％

126.0

+18.6

6.1％

117.3％Net income

66.7

3.2％

76.5

+9.8

3.7％

114.7％EPS (yen/share)

111.86-128.19+16.33-114.6％＜Exchange Rate＞

Tax-free sales are expected to exceed 100
billion yen, compared with initial forecasts ofexceeding 80 billion yen.

An increase in the number of customers at
existing stores mainly in suburb are taken into
account on sales growth.

■ GMS business: 31.5 billion yen(up 1.5 billion yen)

Growth in PB and OEM and reduction in SG&A
expenses due to optimized staffing areexpected.

■ Asia business: 0.3 billion yen(down 3.7 billion yen)The full-year forecast has been revised
downwards in view of current conditions.

■ North America business: 6.6 billion yen(up 1.0 billion yen)

1USD＝138.09 yen, 1HKD＝17.64 yen, 1SGD＝103.35 yen, 1THB＝4.09 yen, 1MYR＝31.73 yen, 1TWD＝4.62 yen, 1MOP＝17.21 yen

The trend towards an earlier recovery from theinitial forecast has been taken into account.

5

Discount Store BusinessDS business continued to drive consolidated results, with sales of 660.5
billion yen (+70.8 billion yen from 1H FY2023) and Operating income of
44.8 billion yen (+14.5 billion yen from 1H FY2023).
 Existing store sales landed at 110.4% YoY.

FY2024 1H Change in Sales<Billion yen>

 Tax-free sales totaled 50.2 billion yen in the first half (up 42.1 billion yen
YoY), a significant increase due to an increase in the number of foreign
visitors to Japan, infrastructure development, and other factors.
December sales exceeded 10 billion yen, reaching a record high.
 Customer numbers at existing stores grew by 101.9% YoY, mainly due
to the success of the 'Maji-Kakaku'(Serious Price) initiative, which began
operating in each trading area.

0

1H
FY2023

Existing
StoresNew Stores

Head Office
Expenses& Adjustments

1H
FY2024

 Existing store gross profit margin improved to 26.8% (up 0.7% YoY).

 PB and OEM sales grew due to improved brand recognition, with thesales composition ratio landing at 18.8% (up 2.0% YoY).
 Existing store inventories were reduced by 7.7 billion yen YoY.

FY2024 1H Change in Operating income SG&A expenses increased due to investment in growth, however, the
SG&A to sales ratio was down by 0.8% YoY due to sales growth and adecrease in utilities costs.

<Billion yen>

▶ DS business PB and OEM ratio
20.0%

21.3%

16.0%
1H
FY2023

Existing
StoresNew Stores

Head Office
Expenses& Adjustments

1H
FY2024Q1

FY2022Q2

FY2023Q3

FY2024Q4

S.Korea
China
Other

5.4%

9.9%
33.7%

11.6% 19.7%

14.0%
12.0%

FY2024 1H

FY2023

9.0% 4.7%

18.0%
0▶ Tax-free sales by nationality

Taiwan
ASEAN
USA

18.2%
19.5%

29.1%
17.9%

6

DS business: progress on opening new stores
Don Quijote Keikyu Kamata(Tokyo)(Opened on November 22, 2023)

Opened a new Donki store in a shopping center directly connected to astation, which is highly convenient for commuters. As a new stationfront store, the store performed well, exceeding the forecast.
・The store is equipped with self/semi-self cash registers and offers a nowait shopping service to capture the demand for a quick stopover.
・The first floor will focus on food and consumable items to capture
convenient everyday use demands. The second floor, aimed at womenfrom Generation Z to their 30s, will feature a variety of trendy items
such as popular cosmetics and color contact lenses.

Kirakira Donki Tanuki Koji(Hokkaido)(Opened on December 1, 2023)

Kirakira Donki, the third store in Japan, is designed to meet inbounddemand while primarily targeting Generation Z customers, based on thecharacteristics of the area.

・The store aims to be a trend-setting center where customers cancasually drop by during their commute to work, school, or sightseeing
with convenient access just a 3-minute walk from the station.
・In addition to food souvenirs centered on popular Hokkaido gourmet
foods, the store will be the first Kira Kira format to offer pharmaceuticalproducts, in anticipation of inbound demand.
・With the neighboring MEGA DQ Tanukikoji Honten and Don Quijote
Susukino, the three stores are to be viewed as a single entity, and thestores are to be designed to make the most of the area's characteristics.

7

GMS Business

Operating income increased by 5.0 billion yen from the previous 1H
as gross profit margin improved and SG&A expenses remained undercontrol.

FY2024 1H Change in Sales<Billion yen> Existing store sales were 99.5% of the previous 1H level.

 Despite strong sales of summer products in Q1, existing store sales
were 99.5% of the previous 1H level, due to a weak start of fall andwinter products.

 Existing store gross profit margin increased further to 27.5% ( up 0.9%
YoY).

0

1H
FY2023

Existing
StoresNew Stores

Head Office
Expenses& Adjustments

1H
FY2024FY2024 1H Change in Operating income<Billion yen>

 PB and OEM sales were successful due to aggressive sales expansion,
such as placement of products in prime locations in stores andintroduction of standard shelf allocation. The sales composition ratio
grew significantly to 25.1% (up 5.3% YoY). (Gross profit margin
improvement effect: +0.5%)

 SG&A expenses were down 3.6 billion yen YoY (SG&A to sales ratio:
down 1.1%). In Q2, sales promotions for the entire building were
strengthened through TV commercials, flyers, and web advertising, while
SG&A expenses continued to be controlled by optimizing personnel
allocation and integrating the functions of the Tenant and MD Divisions.

▶ Gross profit margin at existing stores FY2022–FY2024*before reflecting expected losses

29.0%
27.0%
25.0%

0

1H
FY2023

Existing
StoresNew Stores

Head Office
Expenses& Adjustments

1H
FY202423.0%

Q1

FY2022Q2

FY2023Q3

FY2024Q48

Overseas Business

Strategic investments such as new store costs continued, and overall
overseas sales increased but profits decreased. Operating income washigher than planned in North America, but struggled in Asia.

FY2024 1H Change in Sales<Billion yen>

■Asia Business Sales declined by 0.2 billion yen YoY, and Operating income declined by 0.9
billion yen YoY, resulting in a decrease in both sales and profit.

 Sales of high-end products such as sushi and fresh foods declined due todelayed response to changing consumption trends amid expanding
demand for eating out. Lower sales per customer YoY were a factor pushingdown overall sales.

01H
FY2023

Asia

North
America

FY2024 1H Change in Operating income

1H
FY2024

 Gross profit margin improved by 1.1% YoY due to an increase in the sales
composition of PB and OEM and directly traded products, as well as pricing
measures.

 SG&A expenses increased by 1.3 billion yen YoY due to the cost of new storesin each country, but came in under budget due to a decrease in expenses fromthe consolidation of head office functions and continued efforts to optimize
personnel expenses at existing stores.
■North America Business<Billion yen>

 Net sales exceeded the previous year and the forecast at the beginning of theperiod. Operating income declined by 0.9 billion yen from the previous 1H, but
remained above the forecasted level.
 The establishment of a supply system from the central kitchen, stableproduct supply, and sales expansion of sushi and delicatessen contributed
to the growth of sales and gross profit.
 Gross profit margin increased by 0.3% YoY as a result of strengthening PB
and OEM.

1H
FY2023

Asia

North
America

1H
FY2024

 In addition to new store openings, SG&A expenses were controlled withinbudget despite investments in central kitchens, warehouses, and other facilities,
as well as enhanced hiring of human resources.

*1. Figures for North America are the simple aggregate of DQ USA, MARUKAI, QSI and Gelson’s. Results are for the period from April 2023 to September 2023, while Gelson’s is from July 2023 to December 2023.
*2. Figures for Asia are the simple aggregate of PPRM (SG), PPRM (HK), DONKI Thailand, PPRM(TW), PPRM(MY), and Macau PRRM(MO). Results are the period from April to September 2023.
*3. Gelson's Operating income is calculated after deducting amortization of goodwill (FY2024 1.8 billion yen, FY2023 1.7 billion yen).

9

Status of major assets, liabilities and net assets
June 2023
AmountCurrent Assets
Cash and Deposits
Account
receivableinstallment
Products

Non-Current Assets
Buildings, etc.
Land
Intangible Assets
Lease andGuarantee
Deposits

Total Assets＜Status of major assets＞
・Non current asset

551.8(Unit: Billion Yen)

Amount

242.1

546.3

Change

(5.5)

186.9

(55.2)

55.4

61.6

6.3

194.5

206.2

11.7

929.2

952.3

23.1

318.7

335.0

16.3

288.0
88.5

289.9
88.8

1.9
0.3

71.8

70.8

(1.0)

1,481.1

1,498.6

17.6▶ Tangible fixed assets : 713.9 billion yen(+24.7 billion. yen)・ Investment related to store openings, etc.
: 38 billion yen
・ Depreciation : 18 billion yen

June 2023

December 2023

AmountTotal Current Liabilities
Accounts PayableTrade*1

Short-Term Liabilities

Total Noncurrent
Liabilities*1

Corporate Bonds
Long-Term Borrowings

Total Liabilities
Net Assets

Liabilities and Net
Assets(Unit: Billion Yen)

December 2023
AmountChange

368.4

454.8

86.4

45.3

72.9

27.6

168.7

224.5

55.9

649.1

530.9

(118.2)

272.5

226.1

(46.4)

261.6

191.4

(70.2)

1,017.5

985.7(31.8)

1,481.1

1,498.6

17.6

463.5

512.9

49.4

*1. Short-term liabilities= Short-term loans payable + Current portion of long-term loans payable + Current portion of bonds＜Status of major liabilities＞▶ Interest-bearing debt : 490.4 billion yen(-89 billion yen)

＜Status of net assets＞▶ Net worth : 501.7 billion yen(+48.4 billion yen from the previous year-end)▶ Capital adequacy ratio :33.5％(+2.9％ from the previous year-end)＜Others＞▶ Net D/E ratio :0.61 x(-0.13 x from the previous year-end)▶ ROE: 20.2 ％(+4.5％ from the previous year-end) Redemption of 140.0 billion yen of subordinated bonds in full prior to maturity due to improved financial soundness ( Issuance of 70.0 billion yen of
unsecured bonds and cash and deposits will be used to cover the redemption)
10

Status of cash flows and capital expenditure▶ Cash Flow Status

1H
FY 2023
AmountBalance at Beginning of
PeriodCash Flows from Operating
Activities
Cash Flows from Investing
Activities

Cash Flows from Financing
Activities
Changes During the Period
Balance at the End of the Period

Free Cash Flow

*1

1H
FY 2024
Amount(Unit:Billion yen)

Change180.4

2,46.2

65.8

103.2

1,02.1(1.0)(37.6)(43.8)(6.2)(24.0)(99.3)(75.3)

43.4(38.8)(82.1)

223.8

2,07.4(16.3)

65.6

58.3

(7.2)

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

34.2

44.8

Negative factors: 10.1 billion yen in increase of
inventories and 29.1 billion yen in income taxes
paid.

＜ Investing CF:-43.8 billion yen＞

▶ Cash out factors: 40.1 billion yen for tangible
fixed assets acquisition associated with store
openings and 3.8 billion yen for intangible
acquisition.

＜ Financing Activity CF:-99.3 billion yen＞
▶ Cash in factors: 69.8 billion yen in proceeds fromissuance of bonds and 10.0 billion yen inproceeds from long-term debt.

Cash out factors: 140.6 billion yen in redemption ofbonds 28.2 billion yen in repayment of long-term
debt, and 9.5 billion yen in dividends payment＜Breakdown of Capex for FY2024 Q2 ＞

▶ Status of capital expenditures
Capital Expenditures＜ Operating CF :+102.1 billion yen＞
▶ Positive factors: 72.9 billion yen in income before
income tax, an increase of 54.5 billion yen inaccounts payable and 22.2 billion yen in
depreciation.

10.5▶ DS business 26 billion yen
GMS Business 5.4 billion yen
Overseas business 6.7 billion yen
Finance Business 1.3 billion yen
Others 5.4 billion yen

11Status of shares
Dividends

 For FY2024, we expect to increase the dividends to 21 yen, making it 21st consecutive fiscal
year of dividends increase.

 We will continue to return profits to shareholders based on our progressive dividend policy,
aiming for a dividend payout ratio of 20% or more over the medium term, while maintaining abalance between investment in growth and shareholder returns.
Dividends (yen)

25.0

20.0

Payout Ratio (%)

20.0

Annual dividends (left axls)
Payout ratio (right axls)

18.0
16.0
12.0

10.0

0.0

Shareholders who are listed or recorded in theshareholders' register as of the last day of Juneand December, and who hold at least 100 sharesare awarded 2,000 yen worth of majica points
through the majica app.
* Download and registration to the majica app
are required to receive the points.
*The coupon code to receive points is enclosedwith dividend-related documents which we
send out at the end of September and lateMarch.

14.0

15.0

5.0

Shareholder Benefits

5.5 6.5
5.0
4.5
4.1
3.1 3.5 3.9

8.0

10

15

16

17

20

21

8.0
6.0
4.0
2.0

10/6 11/6 12/6 13/6 14/6 15/6 16/6 17/6 18/6 19/6 20/6 21/6 22/6 23/6 24/6

(planned)**PPIH 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.

10.0

0.0

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

Share Ownership
18.1%

18.5%

18.8%

19.1%

18.6%

12.9%

12.8%

12.8%

57.2%

56.9%

57.8%

2.3%
6.0%

2.6%
6.0%

2.2%
6.0%

2.3%

59.4%

1.6%

FY2021

3.1%

FY20222.9%

FY20232.1%

FY2024 (Q2)

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

12

FY2024
Initiatives for Q3 and onward

13Initiatives for Q3 and onward New store openings: Steadily progressing toward the annual plan of opening 25 stores, including
specialized formats with clear customer targets and stores directly connected to train stations. Continue toopen new stores in various packages to expand domestic market share.

DS Business Tax Free Strategy: Continue to improve infrastructure (number of cash registers/strengthening hiring forpeak hours) in order to further increase sales.
 PB and OEM strategy: Utilize the contents of the “Syojiki Review”(honest review) of "Maji-voice“(serious
voice), and start product development reflecting customer needs.
 Price strategy: Full-scale operation of "Maji-Price”(serious price) which lowers the price of products withhigh customer evaluation, started in March. Implement strategies to attract customers by offering pricesthat are exclusive to majica members.

 Price strategy: To increase popularity in the trade area, items, mainly food and consumables, are selectedby each store. Strengthen price appeals and at the same time, create stores that convey low-price feelingand create a store-wide incentive to come to the store.

GMS
Business Strengthen MD strategy: Capture new demand by introducing untapped housing-related category
products for which there are latent customer needs. In addition, the company will simultaneously conduct
related sales in the food section, while aiming to further increase the sales composition ratio of PB and
OEM products and rebuild the branding.
 Individual store management strategy: To enable stores to quickly and accurately implement pricing andproduct strategies tailored to the characteristics of the trade area, the number of stores per branchcompany will be reduced and a deeper store support system will be established to strengthen individualstore management. At the same time, increase the number of branch president posts to create anorganizational structure with a strong sense of competition, with clear wins and losses among branchcompanies.

14

Initiatives for Q3 and onward Individual store strategy: To strengthen non-food categories from the traditional food-centeredassortment, i.e., cosmetics, character goods for tourists in urban areas, and daily consumables andhousehold sundries in suburban areas, in line with consumption in each trading area.

Asia
Business Human Resource Development: In order to spread best practices, as in the case of display andproduction techniques, increase the number of personnel from Japan who can provide technicalguidance, and support the growth of local human resources. Make human resource development
one of the pillars of the strategy in order to thoroughly delegate authority.
 Strengthen PB and OEM: Strengthen locally manufactured PB and OEM in addition to PB and OEM
and direct trade products from Japan. In addition, the company will also begin marketingstrategies using SNS and other means to increase brand awareness.

North
AmericaBusiness Strengthen prepared food/sushi category: In Hawaii, trainers will be assigned to provide technicalguidance in the prepared food, sushi and meat department to differentiate the company fromcompetitors and attract new customers. In California, the central kitchen will be operated morestably to improve productivity and provide high quality items to improve profit margins.
 Strengthen PB and OEM: For PB and OEM, promote product development with local
manufacturers. In Hawaii, the company will improve warehouse operations to increase sales
volume of directly traded products and boost earnings.

 Investment for growth: Aggressive investment in business expansion through new store openings
in the next fiscal year and beyond, as well as personnel reinforcement to strengthen the support
system.
15

(Reference) January Flash report of domestic DS/GMS business In domestic retail, the discount store business led sales and customer numbers.

Both DS and GMS businesses had strong first sales and growth in all winter seasonal
products.

▶ Year on Year sales of existing store
Unit:％

Japan
DS

GMS

Q1

Cum.

108.0

110.9

100.3

Oct

Nov

106.9

Q2

109.2

110.0

113.0

99.0

99.9

Dec

104.8

107.7
97.7

▶Tax Free Sales of domestic DS business

Cum.

106.8

110.0
98.8

Q3

Jan

105.5

107.9
99.3

In the DS business, tax-free sales in December exceeded 10 billion yen,a record high. Monthly duty-free sales in January also exceeded 10
billion yen.

(Unit: Billion Yen)

200%

10

Tax-free sales (2023)

8

Number of visitors compared to 2019vs 2019(Before Covid-19)

160%
120%

6

80%

4

40%

2
0

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

*Source: Japan National Tourism Organization and other statistics

Nov

Dec

Jan

0%

■ DS business The strong sales continued from the end of the year, and haveremained strong after the new year. All categories exceeded theprevious year.

 Outgoing demand remained strong. Sales of cosmetics, color
contacts, and skincare products grew.
 Sales of game consoles and hobby-related products grew.
Character fancy goods also performed well.

 Categories for daily use, such as detergents, kitchenware, andpet care products, also performed well.

■ GMS business During the New Year's first sales period, demand increased for sushi
and fruits in addition to lucky bags and Osechi (New Year's dishes).
 Demand for winter seasonal products surged as the weather turned
colder.
 In apparel, sales increased in winter clothes, innerwear, gloves,and scarves.
 In housing-related products, moisturizing products, careproducts, and cosmetics contributed to sales. In addition,
children's toys performed well.

16

Appendix

17

(Reference 1)Promotion of Sustainability Management(1) [ESG-related topics] Enhance PPIH's business continuity by balancing the resolution of environmental and social issues with business growth.
 Utilize evaluations by ESG evaluation organizations as objective assessments, leading to high evaluations and index adoption.

Major Environmental Initiatives in Q2

Key Evaluations from ESG Rating Agencies

Reduction of CO₂ emissions: introduction of off-site CPPA

First inclusion in the MSCI Japan ESG Select Leaders Index

Promote procurement of renewable energy toachieve CO₂ reduction goals. Signed off-site
CPPA in November 2023. Plans to newly supply
power derived from renewable energy to MEGADon Quijote, Apita, and other, a total of four
stores. This is expected to reduce CO₂ emissions
by approximately 1,600 tons per year.

The constituents are selected from among listed Japanese stocks
that excel in ESG initiatives. The Company was selected as aconstituent for the first time in December 2023, having been
awarded the Leader Group "AA" in MSCI's ESG ratings (MSCI ESG
Ratings) in August 2023.
2023 CONSTITUENT MSCI JAPANESG Select Leaders Index

Target: Reduce CO₂ emissions from stores by 50% by 2030 (baseline FY2013)▼The MSCI ESG rating trend

Plastic reduction: change of material for spoons and straws
From November 2023, spoons and straws
distributed by customer service will bemade of wood and paper. This is expected
to result in a reduction of approximately
35 tons of plastic per year.
Target: Reduce the amount of plastic used in customer service by 70%
by 2030 (baseline FY2019)

BB

BB

BBB

AA

BBB
Rated as AA(2nd from the top out of 7)*evaluated in August 2023

2019

2020

2021

2022

2023

18

Promotion of Sustainability Management(2) [major ESG-related data]
Unit
Environment*

Scope 2

Scope 1 & 2
yen)

CO₂emissions

Scope 3Society

Number of female store managers
Female turnover rate
Governance
Number of Directors% of female Directors% of outside Directors
Average age of Directors

FY2023534,349

522,868

541,244467,083

452,694475,920

0.347

0.336

0.336

t-CO₂

5,049,404

5,419,783

5,574,580

Number

13

26

31

t-CO₂

CO₂ emissions per sales (million

FY2022

Target:Reduce CO₂ emissions (Scope 1 and 2) from stores by 50% by 2030 (baseline FY2013)

Scope 1 & 2 CO₂ emissions in total
Scope 1

FY2021

t-CO₂/million
yen

67,26670,17465,324

Target: Increase female store managers to 100 (by June 2030)
Reduce turnover rate to 5% to improve retention of female employees (by June 2030)％

Number
％
％

Age

11.6%

8.8%

9.7%

15

12

11

6.7%

33.3%

57.9

8.3%

33.3%

54.4

-Data collection period: Scope 1, 2, and part of Scope 3 of Environment and Society are calculated based on the fiscal year of the government (April to March).
All other data are calculated based on the PPIH fiscal year (July to June).
Governance data is derived as of September 30, 2021, September 30, 2022, and September 30, 2023.
-Scope of data: Environment: major domestic corporations (including overseas corporations for part of Scope 3); Society: major domestic corporations; Governance: PPIH non-consolidated.
*Environmental data for the period ending June 30, 2023 are preliminary.

9.1%

36.4％
56.4

19

Q2 results by business segment(Unit : Billion yen)

【Period:October 1, 2023–December 31, 2023】
DS business

Q2
FY2023

Sales

301.7

Gross profit ratio
OperatingincomeGross profit
SG&A

Operatingincome ratio

Q2
FY2024

GMS businessChangeQ2
FY2023

336.0

34.2

126.2

26.9％

27.7％

0.9％

17.2

25.8
7.7％

81.1
63.9

5.7％

93.2
67.4

Sales

589.7

Gross profit ratio
OperatingincomeGross profit

20.5

34.5％

35.7％

1.2％

8.6

10.4

12.0

2.0％

8.2％

9.7％

12.1
3.4

43.5
33.2

SG&A

Operatingincome ratio

ChangeQ2
FY2023(Cum.)

239.5

26.4％

27.3％

0.9％

30.3

44.8

6.8％

125.6

5.1％

135.5

32.1

61.2

37.2％

37.6％

0.4％

1.7

0.6

0.2

1.5％

3.0％

0.9％

0.6

(1.0)

7.6
7.0

7.7
7.5

Q2
FY2024

ChangeOthers・Adjustments
Q2
FY2023

62.9

1.6

(4.9)

36.4％

37.1％

0.7％

-

(0.4)

2.1

1.5

(0.7)

3.3

(2.1％)

3.5％

2.3％(1.1％)

-

0.1
0.5

Q2
FY2024(Cum.)

Asia businessChangeQ2
FY2023(Cum.)

(3.3)

40.3

33.9％

35.0％

1.1％

14.5

14.2

19.2

1.6％

5.9％

8.1％

9.9

Q2
FY2023

(0.0)

236.2

24.3

Change20.5

GMS business

70.8

180.2

44.2

Q2
FY2024

North America business

22.3
20.2

23.3
21.8

1.0
1.6

3.6

Q2
FY2024

Change

(4.7)

0.2

-

-

4.4

0.3

1.3

0.8
1.0

3.1

(0.2)

-

-

(Unit : Billion yen)

660.5

155.9

Q2
FY2023(2.5)

DS business
Q2
FY2024(Cum.)

Change123.6【Period:July 1, 2023–December 31, 2023】
Q2
FY2023(Cum.)Q2
FY2024

Asia business

81.2
67.0

82.6
63.4

Q2
FY2024(Cum.)

North America businessChange

40.1

(0.2)

36.6%

37.7%

1.1%

5.0

1.2

0.3

(0.9)

2.2％

3.0%

0.7%

(2.3%)

1.4

(3.6)

14.7
13.5

15.1
14.8

0.4
1.3

Q2
FY2023(Cum.)

117.0

Q2
FY2024(Cum.)

Change

121.0

4.1

37.1%

37.4%

0.3%

4.0

3.1

(9)

43.3
39.4

3.4%

45.3
42.2

2.5%

1.9
2.8

(0.8%)

Others・Adjustments
Q2
FY2023(Cum.)

(8.0)
7.2

-

(0.6)
7.8

Q2
FY2024(Cum.)

Change(10.2)

(2.2)

-

-

7.8

(0.4)

-

*1. Figures for North America are the simple aggregate of DQ USA, MARUKAI, QSI and Gelson’s. Results are for the period from April 2023 to September 2023, while Gelson’s is from July 2023 to December 2023.
*2. Figures for Asia are the simple aggregate of PPRM (SG), PPRM (HK), DONKI Thailand, PPRM(TW), PPRM(MY), and Macau PRRM(MO). Results are the period from April to September 2023.
*3. Gelson's Operating income is calculated after deducting amortization of goodwill (FY2024 Q2 0.9 billion yen, FY2023 Q2 0.9 billion yen,FY2024 1.8 billion yen, FY2023 1.7 billion yen).

0.6
0.2

8.2

0.4

-

-

20

Overview of Q2 results by business on a consolidated basis[Period: July 1, 2023–December 31, 2023]

AmountDomestic DS Business

FY2023 1H
567.2
42.4

Home electrical appliances
Miscellaneous household goods

Watches and fashion merchandise

45.9

60.9%
4.4%

112.5%
108.1%

16.3%

112.5%

76.3

7.8%

84.4

8.1%

110.6%

26.4%

3.1%

0.9%

284.5
42.8

10.3

27.2%

4.1%

1.0%

Domestic GMS Business

218.1

22.3%

210.5

20.1%

Household Goods

37.4

3.8%

34.7

3.3%

25.0

Clothing

YoY

170.4

8.8

Other

4.3%

638.3

Ratio

15.5%

30.1

Sporting goods and leisure goods

58.0%

AmountFY2024 1H

151.5
258.1

Food products

Ratio(Unit:Billion yen)

2.6%

22.7

2.2%

110.2%

142.3%

116.9%

96.5%
90.9%
92.7%

Foods

154.3

15.8%

152.9

14.6%

99.1%

Overseas Business

156.0

15.9%

160.1

15.3%

102.6%

Asia Business

40.0

1.5

Other

North America Business

Other Business
Total

*1

0.1%

0.2

0.0%

13.4%

116.0

11.9%

120.1

11.5%

103.6%

37.2

3.8%

38.8

3.7%

104.3%

978.4*1. Other Business includes tenant leasing business, and credit card business, etc.

4.1%

100.0%

40.0

1,047.6

3.8%

100.0%

99.9%

107.1%

21

Breakdown of SG&A

【Period:October 1, 2023–December 31, 2023】(Unit : Billion yen)

Q2 FY2023
AmountQ2 FY2024
Ratio

Amount

Ratio

YoY

SG&A

124.6

24.7%

130.2

24.2%

Rent

14.8

2.9%

15.5

2.9%

46.4

Salaries and allowances

16.2

Commission paid

【Period:July 1, 2023–December 31, 2023】

16.1

1.7%

38.7

Other

48.8

3.2%

8.5

Depreciation

SG&A

9.2%

9.4

7.7%

9.1%

105.2%

3.0%

99.0%

1.7%

40.4

7.5%

1H FY2023

AmountRatio

Amount

Ratio

255.5

24.4%

Rent

29.3

3.0%

30.8

2.9%

Other

104.6%

YoY

25.0%

Depreciation

110.5%

1H FY2024

245.0

Commission paid

104.6%(Unit : Billion yen)

SG&A

Salaries and allowances

104.5%

92.3
30.6
16.7
76.1

9.4%
3.1%
1.7%
7.8%

96.3
31.1
18.3
79.1

104.3%

9.2%

104.3%

3.0%

101.6%

1.7%
7.5%

105.3%
109.3%
103.9%

22

FY2024 New Store Openings

Business

Format

Q1
Jul

Aug

Q2
Sep

Oct

Takamatsu
Marugame-Machi(Kagawa)

Nov

Dec

Tsurugashima

Imizu(Toyama)(Saitama)
KeikyuKamata

Jan

Feb

Q4
Mar

Apr

May

Jun

2 stores4 stores4 stores2 stores+α

Full year forecast

Discount Store

Hikone(Shiga)New store opening:

25+α stores
Small

Overseas*1(Tokyo)

DQ

Q3

Asia

DOMISE
Shibuya
Dogenzakadori(Tokyo)CITY LINK
Nangang(Taiwan)

DOMISE
Ario Yao(Osaka)Kirakira Donki
Tanuki Koji

(Hokkaido)

FashionIsland(Thailand)

Taichung
Tiger city
(Taiwan)Tiong Bahru
Plaza(Singapore)

The MallLifestore
Bangkapi

KaoHsiung
Talee(Taiwan)(Thailand)

North
America

Studio City
(Macau)1 storeMid Valley
Megamall(Malaysia)

Gelson’sWest LA(California)*1. Overseas stores are indicated in the opening months.
*2. Period for Gelson’s is July 2023-June 2024. Period for Other overseas is April 2023- March 2024

1 store(Guam)

1 storeNew store opening:
13 stores*223

Store network
Number of Domestic Retails Stores

Discount store business
Don Quijote

MEGA Don Quijote*1(MEGA) Don Quijote UNY

Small Format

GMS business

Domestic Total*2*3

FY2022

FY2023

468

486

140

140

237
59
32

136
604

63
33

131
617

Q1

FY2024

485

250
140

63
32

131
616

Q2

488

North America Business

253

California

140

Hawaii

63

Asia Business

131

Hong Kong

32

619

DON DON DONKI
KaoHsiung Talee(Taiwan)

Don Quijote Tsurugashima(Saitama)

Nov

250

Number of Overseas Stores
FY2023

65

65

28

28

37

Macau

28

38
28

38

9

9

10

10

2

Malaysia

37

66

38

2

Taiwan

65

Q2

36

4

Thailand37

Q1

FY202430

12Singapore*5.

FY2022

1

15

6
2
3
1

16

6
2
3
1

15

6
3
3
1

Overseas Total

*4

95

101

103

104

Total

*5

699

718

719

723

Dec

*1.“MEGA Don Quijote” includes NEWMEGA.

*2. “Small Format” includes Picasso, Essence, Kyoyasudo, Domise, Ekidonki, Soradonki, JonetzShokunin and Nagasakiya etc.
*3. “GMS Business” includes Apita/Piago, U-STORE, PiagoPower , Power Super Piagoetc.

*4. From this fiscal year, "Sen Sen Sushi" in Thailand and Hong Kong are excluded from the store count.

*5. 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 Q3 results for the fiscal year ending June 2024 (Scheduled)
Date of announcement: May 10, 2024 (Friday)
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 or guarantees. Whileforward-looking statements are prepared based on various data that we consider to be reliable, we do not provide any guarantees on theiraccuracy 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

memo

26

2-19-10 Aobadai, Meguro-ku, Tokyo, 153-0042

TEL: 03-5725-7588 / FAX: 03-5725-7024 / e-mail: ir@ppih.co.jp
https://ppih.co.jp/