Summary Report of Consolidated Financial Results
For the Second Quarter Ended December 31, 2022

(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:
Keita Shimizu, 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 Second quarter of fiscal 2023 (From July 1, 2022 to December
31, 2022)(1) Results of Business Operations(Millions of yen, except per-share data)
ProfitNet
Change Operating
ChangeOrdinary
ChangeAttributable
Change
(%)
Sales
(%)
Income(%)
Income(%)
to Owners ofParent
Six Months Ended
978,449
6.6
57,45631.6
57,22628.5
36,77722.0
December 31, 2022
Six Months Ended
917,680
7.6
43,644(11.5)
44,523(7.6)
30,148(7.6)
December 31, 2021
(Note) Comprehensive income: 48,059 million yen [61.0%] (FY 2023.6 2Q), 29,854 million yen [(9.7)%] (FY 2022.6 2Q)
Net Income Per Share(Yen)Net Income Per Share-fully
diluted (Yen)

61.67

61.52

49.40

49.28

Six Months Ended
December 31, 2022
Six Months Ended
December 31, 2021

(2) Financial Position
Total Assets

Net assets

Ratio of Shareholder’s Equity
to Total Assets(%)

As of December 31,
1,476,908
436,71029.22022
June 30, 2022
1,383,678
399,247
28.3(Reference) Equity: 431,086 million yen (as of December 31, 2022), 392,220 million yen (as of June 30, 2022)
2. Dividends
Three Months Endof September 30
Year Ended June 30,2022
Year Ending June 30,2023
Year Ending June 30,2023 (Forecast)

Annual Dividends per share
Six Months End ofNine Months End of
December 31
March 31

－

3.00

－

4.00

Year Endof June 30

Total－

14.00

17.00

－

14.00

18.00

(Note) Revision to the dividend forecast in the Second quarter of fiscal 2023: None
3. Consolidated Business Forecast：For the year ending June 30, 2023 (From July 1, 2022 to June 30, 2023)(Millions of yen, except per-share data)
Net Sales

Change(%)

Operating
IncomeChange(%)

Ordinary
IncomeChange(%)

Year Ending
1,890,000
3.2
94,0006.0
82,500(17.9)
June 30, 2023
(Note) Revision to the business forecast in the Second quarter of fiscal 2023: None1

ProfitAttributableto Owners ofParentChange(%)

Net
Income perShare(Yen)

56,900

(8.1)

95.42

4. Others(1) Significant changes in the scope of consolidation: Yes
Newly consolidated: － , Excluded: 1 company (B'CAUSE Pte. Ltd.)(2) Simplified accounting methods and special accounting methods for preparation of the quarterly consolidated financialstatements: None
(3) Changes in accounting policies concerning preparation of 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 shares)① Number of outstanding shares (Treasury shares included) December 31, 2022
June 30, 2022
② Number of treasury shares
December 31, 2022
June 30, 2022
③ Average number of outstanding shares during the period
December 31, 2022
December 31, 2021

634,518,640 shares
634,378,640 shares
38,073,224 shares
38,073,224 shares
596,372,007 shares
610,276,423 shares※This financial summary is not subject to audit conducted by certified public accountants or an audit corporation.
※Explanation regarding the appropriate use of forecasts of business results
The financial forecasts of business results are 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, actualresults might be significantly different from the aforementioned forecasts for a variety of reasons, including changes
in economic environments related to our business, market trends and foreign currency exchange rates.
※The Company plans to hold a financial result briefing for security analysts and institutional investors on February 8,
2023. Presentation materials for the briefing will be available on the Company’s website.

2

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

As of December 31,

2022

2022

AmountAmountAssetsCurrent assets
Cash and deposits¥176,777¥208,854

Notes and accounts receivables-trade

12,72818,434

Accounts receivables - installment

52,12260,464

Operating loans

8,115

8,345

Merchandise and finished goods

205,893

210,087

Prepaid expenses

7,904

9,533

Deposits paid

4,768

16,416

Other

20,052

28,739Allowance for doubtful accounts(1,828)(2,152)486,531558,720

Buildings and structures, net

268,358

269,297

Tools, furniture and fixtures, net

35,02235,713

Total current assets

Non-current assets
Property, plant and equipment

Land314,711319,626

Construction in progress

19,64929,811

Right of use assets, net

25,913

26,640

Other, net

1,412

1,359

665,065

682,447

61,75960,520Other

24,45827,079Total intangible assets

86,21787,59927,22632,336

Total property, plant and equipment
Intangible assets
Goodwill

Investments and other assets
Investment securities
Long-term loan receivables

966

351

Long-term prepaid expenses

4,859

4,553

Retirement benefit asset

17,455

17,527

Deferred tax assets

20,84018,650

Lease and guarantee deposits

73,22573,265

Other

3,422

3,595

Allowance for doubtful accounts
Total investments and other assets
Total non-current assets

Total assets

3(2,129)(2,133)

145,864

148,143

897,146

918,188¥1,383,678¥1,476,908

(Millions of yen)
As of June 30,

As of December 31,

2022

2022

AmountAmountLiabilities
Current liabilities
Notes and accounts payables - trade¥152,885

Short-term loan payables¥211,633－929

Current portion of long-term loan payables

26,91841,409Current portion of bonds

11,421

11,250Accounts payables – other49,128

49,973

Lease obligations

1,804

1,844

Accrued expenses

25,18221,025

Deposits received

13,48520,948

Income taxes payables

13,492

15,123

Provision for point card certificates

1,935

2,543

Contract liabilities

11,361

12,740Other

18,765

19,961

Total current liabilities

326,378

409,379

Bond payables

272,555

271,950

Long-term loan payables

276,201

248,392

Lease obligations

25,471

26,473

Asset retirement obligations

30,33830,841

Other

53,48853,164

Total non-current liabilities

658,053

630,819

984,4311,040,198

Capital stock

23,21723,283

Capital surplus

17,376

17,441Retained earnings

428,044456,361

Treasury shares(80,956)(80,956)

Total shareholders' equity

387,681

416,128

Non-current liabilities

Total liabilities

Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

520

604

Foreign currency translation adjustment

3,532

13,906

Remeasurements of defined benefit plans

487

447

4,539

14,957

Total accumulated other comprehensive income
Share acquisition rights

271

410

Non-controlling interests

6,755

5,215

399,247

436,710¥1,383,678¥1,476,908Total net assets
Total liabilities and net assets

4Consolidated Quarterly Statements of Income
Six months ended
December 31, 2021
AmountNet sales¥917,680

Cost of sales(Millions of yen)Six months ended
December 31, 2022
Amount¥978,449

649,814676,029

267,866

302,420

224,222244,964

43,64457,456

Non-operating income
Interest and dividend income
Amortization of negative goodwill
Share of profit of entities accounted for using equity method
Foreign exchange gains
OtherTotal non-operating income

604
7239
2,523
2,027
5,401

489－283625
2,319
3,717

Non-operating expenses
Interest expenses paid on loans and bonds
Cost of claim's liquidation
Other
Total non-operating expenses
Ordinary income

3,695
1
826
4,522
44,523

3,833
－
114
3,947
57,226

6
73
0
79

9
3
22
33

656
49
15
256
976
43,626

558
490
34
104
1,186
56,073

Income taxes – current
Income taxes – deferred
Total income taxes
ProfitProfit attributable to non-controlling interests

9,852
3,272
13,12530,501353

16,844
1,946
18,79037,283505

Profit attributable to owners of parent¥30,148¥36,777

Gross profit
Selling, general and administrative expenses
Operating income

Extraordinary income
Gain on sales of non-current assets
Reversal of provision for environmental measures
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on closing of stores
Loss on disaster
Other
Total extraordinary losses
Profit before income taxes

5Consolidated Quarterly Statements of Comprehensive Income

ProfitSix months ended
December 31, 2021

(Millions of yen)Six months ended
December 31, 2022

AmountAmount¥30,501¥37,283

Valuation difference on available-for-sale securities

184

187

Foreign currency translation adjustment(812)

10,624

(6)

(20)

(12)

(14)

Other comprehensive income

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of affiliates
accounted for using equity method
Total other comprehensive income
Comprehensive income(647)

10,776¥29,854¥48,059¥29,427¥47,195

427

864

Comprehensive income attributable to：
Owners of parent
Non-controlling interests

6Consolidated Quarterly Statements of Cash FlowsSix months ended
December 31, 2021
AmountCash flows from operating activities:
Profit before income taxes
Depreciation and amortization
Decrease in provisions
Interest and dividend income
Interest expenses paid on loans and bonds
Foreign exchange gains
Share of profit of affiliates accounted for using equity method
Loss on sales and retirement of non-current assets
Increase in notes and accounts receivables – trade
Increase in inventories
Increase in notes and accounts payables – trade
Increase in accounts receivables – installment
Increase in accounts payables – other
Increase in deposits received
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refund
Payments for loss on disaster
Dividends received from affiliates accounted for using equity method
Net cash provided by operating activities
Cash flows from investing activities:
Payments for purchase of property, plant and equipment
Payments for purchase of intangible assets
Payments for purchase of shares of subsidiaries and affiliates
Payments for leasehold and guarantee deposits
Proceeds from collection of leasehold and guarantee deposits
Payment for store opening in progress
Other, net
Net cash used in investing activities

7(Millions of yen)Six months ended
December 31, 2022
Amount¥43,626
18,453(6,201)(604)
3,695(2,523)(239)
713(9,808)(14,686)
55,750(15,534)
9,578
6,868
(7,131)
81,956419(3,747)(28,143)
15,421(69)
21
65,857¥56,073
20,734(1,554)
(489)
3,833
(625)
(283)
550
(5,626)(1,953)56,874(8,404)
4,360
7,464(6,198)
124,756515(3,855)(18,735)
526
(86)
53
103,174(21,707)(1,808)－(338)
766
(546)
311
¥ (23,321)(29,114)(4,360)(3,386)
(754)
327
(293)
(7)
¥ (37,586)

Six months ended
December 31, 2021
AmountCash flows from financing activities:
Net increase (decrease) in short-term loan payables
Repayments of long-term loan payables
Proceeds from issuance of bonds
Redemption of bonds
Cash dividends paid
Purchase of shares of subsidiaries not resulting in change in scope ofconsolidation
Purchase of treasury shares
Other, net
Net cash used in financing activities
Effect of foreign exchange rate change on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Decrease in cash and cash equivalents resulting
from inclusion of subsidiaries in consolidation
Increase in cash and cash equivalents resulting
from merger with unconsolidated subsidiaries
Cash and cash equivalents at the end of period8(Millions of yen)Six months ended
December 31, 2022
Amount¥(826)(15,919)
79,619(1,828)(8,245)¥978(12,759)－(776)(8,348)－(2,239)(80,941)(967)(29,108)
2,965
16,393160,875－(808)(23,952)
3,465
45,101
180,418－(1,852)－

104¥177,268¥223,770

Segment Information
For the Second Quarter Ended December 31, 2022
1. Information concerning sales and income by reporting segment(Millions of yen)
Reporting segment
Domestic
business

North America
businessAsiabusiness

Total

Adjustment

Consolidated

Sales, Segment income
Sales¥821,242¥116,978¥40,229¥978,449¥－¥978,449

5,784

－

63

5,847

(5,847)－

Total

827,025

116,978

40,292984,295(5,847)

978,449

Segment income¥52,672¥3,591¥1,193¥57,456¥－¥57,456

Sales to third parties
Intersegment sales

NoteSegment income is adjusted to the quarterly consolidated operating income.
2. Information concerning changes in reporting segments
The group will strive to improve profitability in domestic business by (1) expanding business value chain, (2) providing
new CV (Convenience) + D (Discount) + A (Amusement) through DX, (3) promoting organizational integration andproductivity improvement, and (4) systematically creating new business categories, while overseas, also aims to expand
its scale by continuing to open new stores in both Asia and North America.
In addition, we have formulated a new medium- to long-term management plan, "Visionary 2025/2030," which aims toimprove profitability through the establishment of a global value chain.
Therefore, we added business segment and reviewed the classification method, in the first quarter ended September 30,
2022. The three reporting segments “Discount Store business”, “GMS business” and “Rent business” have been reconciled
into three “Domestic business”, “North America business” and “Asia business”.
Segment information for the previous fiscal year is disclosed based on this reclassifications.
3. Information concerning impairment loss of fixed assets or goodwill by reporting segment
Not applicable
For the Second Quarter Ended December 31, 2021
1. Information concerning sales and income by reporting segment(Millions of yen)
Reporting segment
DomesticbusinessNorth America
businessAsiabusiness

Total

Adjustment

Consolidated

Sales, Segment income
Sales¥790,706¥96,519¥30,455¥917,680¥－¥917,680

6,113

－

－

6,113

(6,113)－

Total

796,819

96,51930,455

923,793(6,113)

917,680

Segment income¥37,850¥5,103¥691¥43,644¥－¥43,644

Sales to third parties
Intersegment sales

NoteSegment income is adjusted to the quarterly consolidated operating income.
2. Information concerning impairment loss of fixed assets or goodwill by reporting segment
Not applicable9