Summary Report of Consolidated Financial Results
For the Nine Months Ended March 31, 2019

(All financial information has been prepared in accordance with accounting principles generally accepted in Japan.)
Pan Pacific International Holdings Corporation
Securities Code No.: 7532
Shares Listed:Tokyo Stock Exchange
Address:
2-19-10 Aobadai, Meguro-ku, Tokyo
Representative:
Kohji Ohara, President and CEO
Contact:
Mitsuo Takahashi, Senior Managing Director (Phone: +81-3-5725-7588)
URL:
http://www.ppi-hd.co.jp(Amounts in million yen are rounded off to the nearest million)
1. Overview of Business Results and Financial Position for the third quarter of fiscal 2019 (From July 1, 2018 to March 31,2019)(1) Results of Business Operations(Millions of yen, except per-share data)
Operating
Ordinary
Net Sales
Change (%)
Change (%)
Change (%)
IncomeIncomeNine Months Ended
918,99030.7
46,332
15.7
51,75819.1
March 31, 2019
Nine Months Ended
703,156
13.4
40,0607.9
43,441
20.6
March 31, 2018
(Note) Comprehensive income: 39,994 million yen [33.4%] (FY 2019.6 3Q), 29,984 million yen [ᇞ10.8%] (FY 2018.6 3Q)
ProfitAttributable toOwners of Parent
Nine Months Ended
March 31, 2019
Nine Months Ended
March 31, 2018

Change (%)

Net IncomePer Share(Yen)Net Income Per
Share-fully
diluted (Yen)37,05236.4

234.17233.5327,1630.7

171.71

171.43(2) Financial Position(Millions of yen, except per-share data)

Ratio of Shareholders’Equityto Total Assets (%)
As of March 31, 2019
1,286,058
340,391
24.9
June 30, 2018806,778
312,495
36.0(Reference) Equity: 320,086 million yen (as of March 31, 2019), 290,363 million yen (as of June 30, 2018)(Note) Starting with the beginning of the first quarter of fiscal 2019, we are applying “Partial Amendments to AccountingStandard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ) Statement No.28, February 16,2018).
Prior-year figures have been adjusted retroactively to conform with this accounting standard.
Total Assets

Net assets

Three Months Ended
September 30

Six Months Ended
December 31

2. Dividends

Year Ended June 30,
2018Year Ending June 30,
2019Year Ending June 30,
2019 (Forecast)

Yen
Nine Months
Ended March 31

－

5.00

－－

10.00

－

Year Ended June30

Total27.00

32.00

28.00

38.00

(Note) Revision to the dividend forecast in the third quarter of fiscal 2019: NoneThe Breakdown of dividends for the Six Months Ended December 31, 2018: Ordinary dividend 5.00 Yen, Commemorative
dividend 5.00 Yen

13. Consolidated Business Forecast：For the year ending June 30, 2019 (From July 1, 2018 to June 30, 2019)(Millions of yen, except per-share data)
ProfitNet

ChangeOperating

ChangeSales(%)

Income(%)

Ordinary
IncomeChangeAttributable toChange(%)

Owners of(%)

ParentYear EndingJune 30, 2019(Note)

1,330,000

41.363,000

22.2

67,00017.1

48,000Net Incomeper Share(Yen)

31.9

303.25

Revision to the business forecast in the third quarter of fiscal 2019: Yes

4. Others(1) Significant changes in the scope of consolidation: Yes
Newly consolidated: two companies (PAN PACIFIC STRATEGY INSTITUTE PTE. LTD., UNY Co., Ltd.)
Excluded:－(2) Simplified accounting methods and special accounting methods for preparation of the quarterly consolidated
financial statements: None
(3) Changes in accounting policies concerning preparation of quarterly consolidated financial statements① Changes in line with revision to accounting standards: None
② Other changes: None
③ Changes in accounting estimates: None
④ Restatement: None
(4) Number of outstanding shares (Common stock)① Number of outstanding shares (Treasury stock included)
March 31, 2019
158,288,760 shares
June 30, 2018
158,193,160 shares② Number of treasury stock
March 31, 2019
4,659 shares
June 30, 2018
4,633 shares③ Average number of outstanding shares during the period
March 31, 2019
158,224,575 shares
March 31, 2018
158,185,115 shares※This financial summary is not subject to quarterly reviews.
※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 exchange rates.
※The Company plans to hold financial results briefing for securities analysts and institutional investors on May 8,
2019. Presentation materials will be available on the Company’s website.

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

As of March 31,

2018

2019

AmountAmountAssetsCurrent assets
Cash and deposits¥71,973

Notes and Accounts receivable-trade

12,84820,429－66,109Merchandise

135,781

181,578

Other

16,01550,501(4)(685)

236,613494,980

Buildings and structures, net

133,415

264,590

Tools, furniture and fixtures, net

19,71824,810Land

188,866

317,547

5,914

4,407

347,913611,354

Goodwill

17,60017,457

Other

10,647

19,763

Total intangible assets

28,24737,220Investment securities

31,606

8,822

Long-term loans receivable

95,815

17,425

Accounts receivable - installment

Allowance for doubtful accounts
Total current assets¥177,048

Non-current assets
Property, plant and equipment

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets

Deferred tax assets

15,38920,457

Lease and guarantee deposits

46,49480,853

Other

6,379

17,388

Allowance for doubtful accounts(1,678)(2,441)

Total investments and other assets

194,005

142,504

570,165

791,078¥806,778¥1,286,058

Total non-current assets

Total assets3

(Millions of yen)
As of June 30,

As of March 31,

2018

2019

AmountAmountLiabilities
Current liabilities
Accounts payable-trade¥93,030¥156,172

Current portion of long-term loans payable

17,78819,719Current portion of bonds

3,616

23,416

Payables under fluidity lease receivables

7,262

7,276

Income taxes payable

8,821

7,250

Provision for point card certificates

1,892

4,391

Other39,477

125,174

Total current liabilities

171,886

343,398

Bonds payable

91,274

238,458

Long-term loans payable

200,668

271,101

Long-term payables under fluidity lease receivables

12,104

6,539

Asset retirement obligations

6,538

23,344Non-current liabilities

Negative goodwill

267

202

Other

11,54662,625

Total non-current liabilities

322,397602,269

494,283

945,667

Capital stock

22,436

22,614

Capital surplus

19,975

14,617Retained earnings

248,940

282,290

Total liabilities

Net assets
Shareholders' equity

Treasury shares
Total shareholders' equity(14)(14)

291,337

319,507

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Subscription rights to shares

244

202

(1,218)

377

(974)

579

345

343

Non-controlling interests

21,787

19,962

Total net assets

312,495

340,391¥806,778¥1,286,058

Total liabilities and net assets

4Consolidated Quarterly Statements of Income

Net sales
Cost of sales
Gross profit

Nine months ended
March 31, 2018

(Millions of yen)
Nine months ended
March 31, 2019

AmountAmount¥703,156¥918,990

522,541

666,873

180,615

252,117140,555

205,785

40,06046,332

1,091

1,410

65

65

Equity in earnings of affiliates

3,110

5,897

Other

2,605

3,581

Total non-operating income

6,871

10,953

2,148

3,301

Selling, general and administrative expenses
Operating income
Non-operating income
Interest and dividend income
Amortization of negative goodwill

Non-operating expenses
Interest expenses
Bond issuance cost

90

1,253

Cost of claim's liquidation

297

216

Commission fee

300

500

Other
Total non-operating expensesOrdinary income

655

257

3,490

5,527

43,44151,758Extraordinary income
Gain on sales of non-current assets

93518

Gain on step acquisitions－1,424Gain on bargain purchase

－

9,082

Other

2336

Total extraordinary income

116

11,060Extraordinary losses
Impairment loss－

10,206

Loss on retirement of non-current assets

128251

Loss on closing of stores

126

1,721

Loss on disaster

2335

Other

11270

Total extraordinary losses

267

12,783

Profit before income taxes

43,29050,035

Income taxes - Current

14,10014,248

Income taxes - Deferred126(2,654)

14,226

11,594

Profit29,06438,441

Profit attributable to non-controlling interests

1,901

1,389

¥27,163¥37,052

Total income taxes

Profit attributable to owners of parent

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

ProfitNine months ended

Nine months ended

March 31, 2018

March 31, 2019

AmountAmount¥29,064¥38,441

Valuation difference on available-for-sale securities

(22)

(37)

Foreign currency translation adjustment

940

1,595

2(5)

920

1,553

Comprehensive income¥29,984¥39,994

Comprehensive income attributable toComprehensive income attributable to owners of parent¥28,083¥38,605

1,901

1,389

Other comprehensive income

Share of other comprehensive income of affiliates
accounted for using equity method
Total other comprehensive income

Comprehensive income attributable
to non-controlling interests

6Consolidated Quarterly Statements of Cash Flows
Nine months ended
March 31, 2018
Amount(Millions of yen)
Nine months ended
March 31, 2019
AmountCash flows from operating activities:¥43,290¥50,035

12,552

16,485

Impairment loss

－10,206

Amortization of negative goodwill

(65)

(65)

Gain on bargain purchase－(9,082)

Increase (decrease) in provision147(1,157)

Interest and dividend income(1,091)(1,410)Interest expenses

2,148

3,301

(93)

(284)

Profit before income taxes
Depreciation

Gain on sales of non-current assets(3,110)(5,897)

Gain on step acquisitions－(1,424)

Loss on store closings

126

1,721

Decrease (increase) in notes and accounts receivable - trade(5,379)

1,539

Increase in inventories(10,265)(7,590)

4,494

870

Equity in earnings of affiliates

Increase in notes and accounts payable - tradeDecrease in accounts receivable - installment－

61,008

Increase in prepaid expenses(314)(1,126)

Other, net

2,902

111

Subtotal

45,342

117,241

668

1,249

Interest expenses paid

(1,766)(3,384)

Income taxes paid

(18,383)(23,233)

Income taxes refund

30

1,515

Payments for loss on disaster－(301)

25,891

93,087(32,875)(32,348)

Interest and dividend income received

Net cash provided by operating activities
Cash flows from investing activities:
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment1,063

1,654

Purchase of intangible assets(455)(1,434)(1,668)(1,928)

77

618

(282)

(897)

(16,283)(5,423)Purchase of shares of subsidiaries and affiliates(19,976)－

Payments of loans receivable(77,650)(3)Collection of loans receivable

3,001

3,843

332

(74)

(144,716)(35,992)

Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Payment for store opening in progress
Purchase of shares of subsidiaries resulting in change
in scope of consolidation

Other, net
Net cash used in investing activities

7Cash flows from financing activities:
134,689

90,000

Repayment of long-term loans payable(5,627)(182,369)

Proceeds from issuance of bonds

19,903

168,647

Redemption of bonds(18,516)(3,016)

Repayments of payables under fluidity lease receivables(5,635)(5,751)23

356(4,113)(5,854)

(788)

(808)

－

(4,322)

(340)

(407)

119,596

56,476

Effect of exchange rate change on cash and cash equivalents

(396)

511

Net increase in cash and cash equivalents

375

114,082

78,09475,883－4¥78,469¥189,969

Proceeds from long-term loans payable

Proceeds from issuance of common shares
Cash dividends paid
Cash dividends paid to non-controlling interests
Payments from changes in ownership interests insubsidiaries that do not result in change in scope of consolidation
Other, net
Net cash provided by financing activities

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalentsfrom newly consolidated subsidiary
Cash and cash equivalents at end of period

Segment Information
For the third quarter ended March 31, 2019 ( From July 1, 2018 to March 31, 2019)
1. Information concerning sales and income (loss) by reporting segment(Millions of yen)
Reporting segment
DiscountStorebusiness

GMSRent
Sub Total
business business

Others(Note 1)

Total

Adjustment Consolidated(Note 2)
(Note 3)¥4,432¥918,990¥－¥918,990

Sales, Segment income
Sales
Sales to third parties
Intersegment sales
TotalSegment income (loss)¥756,449 ¥133,953 ¥24,156 ¥914,558
2,304

214

1,086

3,604

1,337

4,941

(4,941)－

758,753

134,167

25,242

918,162

5,769

923,931(4,941)

918,990¥39,355¥3,141¥4,495¥46,991¥ (768)¥46,223¥109¥46,332

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 ¥ 109 million adjustment to segment income is an intersegment elimination.
3. Segment income (loss) is adjusted to the quarterly consolidated operating income.
2. Information concerning changes in reporting segment
UNY Co., Ltd. became a wholly owned subsidiary of the Company since we acquired additional shares on January 4,
2019. Therefore, we added a business segment and reviewed the classification method, in the third quarter ended March31, 2019.The two Reporting segments “Retail business” and “Rent business” heve been reconciled into three Reporting
segments “Discount Store business”, “GMS business” and “Rent business”. In addition, Japan Asset Marketing Co., Ltd.,
which was formerly included in the “Rent business”, and Realit Co., Ltd., which was formerly included in the “Others”
were reconciled into the “Discount Store business” since the nature of the business has been related “Discount Storebusiness”.
Segment information for the third quarter of the previous fiscal year is presented after reclassification that incorporates
this reconcile.
83. Information concerning impairment loss of fixed assets or goodwill by reporting segment(Significant impairment losses on non-current assets)
Impairment losses on store facilities and land were recorded in the Discount Store business segment and Rent businesssegment. Impairment losses of ¥9,751 million in the Discount Store business segment and ¥455 million in the Rent
business segment were recorded for the third quarter ended March 31, 2019.
(Significant changes in goodwill)
Not applicable(Significant gain on bargain purchase)In the GMS business segment, acquired additional shares of UNY Co., Ltd., by including in the scope of consolidation,
the Company recorded a gain on bargain purchase ¥9,082 million for the third quarter ended March 31, 2019.
The purchase price allocations for UNY Co., Ltd. currently remain incomplete pending. It is therefore possible that theamount of gain on bargain purchase will be changed made in the allocation of the purchase prices to the individual
assets and liabilities.
For the third quarter ended March 31, 2018 ( From July 1, 2017 to March 31, 2018)
1. Information concerning sales and income (loss) by reporting segment(Millions of yen)
Reporting segment
DiscountGMSRentStorebusiness businessbusiness

Sub Total

Others(Note 1)

Total

Adjustment Consolidated(Note 2)
(Note 3)

Sales, Segment income
Sales
Sales to third parties ¥689,393－¥12,984¥702,377¥779¥703,156¥－¥703,156

Intersegment sales

1,901

－

1,025

2,926

－

2,926

(2,926)－691,294－

14,009705,303

779

706,082(2,926)703,156¥39,906－¥2,067¥41,973¥(1,916)¥40,057¥3¥40,060

TotalSegment income (loss)
Notes

1. “Others” includes the service related to the operation of the Company (Holdings Company) and so on, which does notbelong to the Reporting segment.
2. The ¥3 million adjustment to segment income is an intersegment elimination.
3. Segment income (loss) is adjusted to the quarterly consolidated operating income.
2. Information concerning impairment loss of fixed assets or goodwill by reporting segment(Significant impairment losses on non-current assets)
Not applicable(Significant changes in goodwill)In the Discount Store business segment, the increase of goodwill resulting from the acquisition of all shares of QSI, Inc.
was ¥13,794 million during the first quarter of the current fiscal year.
(Significant gain on bargain purchase)
Not applicable9