Results for FY2024

August 16, 2024
Pan Pacific International Holdings Corporation

INDEX
１

Overview of FY2024

2

Targets for FY2025

3

Visionary 2030; Toward operating profit of 200 billion yen

4Appendix

Explanatory notes
1. The actual values presented in these materials are rounded to the nearest full unit.
2. The following abbreviations are used: 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,” ” 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
where the account items and other information have been simplified to an extent where they do not change the intent or meaning of the contents.
4. The exchange rates used for overseas operations are below (Gelson's fiscal year ends in June, so the exchange rate is different.)

Unit: Yen

USD

USD

SGD

(Gelson’s)

U.S. dollar

THB

Singapore dollar

HKD

Thai baht

Hong Kong dollar

TWD

Taiwan dollar

P/L

B/S

P/L

B/S

P/L

B/S

P/L

B/S

P/L

B/S

P/L

B/S

FY2023136.00133.54138.09144.9999.05

100.60

3.85

3.91

17.35

17.01

4.47

4.38

FY2024145.31151.40149.97161.14108.04112.11

4.12

4.16

18.57

19.34

4.63

4.74

Regarding Exchange Rates: The P/L uses the average exchange rate for the fiscal period (July 2023 to June 2024 for Gelson’s, and April 2023 to March 2024 for entities other than Gelson’s).
The B/S uses the exchange rate as of the end of June 2024 for Gelson’s, and as of the end of March 2024 for entities other than Gelson’s.

1

Executive Summary< Review of FY2024 >Sustained Growth through “Adaptability to Change” × “Earning Power”
 Sales reached 2.0951 trillion yen (up 158.3 billion yen YoY/+8.2%), making it the fifth
domestic retailer to surpass 2 trillion yen in sales.
 Operating profit was 140.2 billion yen (up 34.9 billion yen YoY/+33.2%), achieving 35
consecutive years of sales and operating profit growth.
 Net income for the period was 88.7 billion yen (up 22.5 billion yen YoY / +34.1%),
surpassing 80 billion yen for the first time.
• Sales: Growth was driven by inbound sales, PB/OEM expansion, strengthened
promotions, the opening of 36 new stores domestically and internationally,
surpassing 15 million majica members, and growth strategies such as memberexclusive pricing and campaigns, primarily in domestic retail• Gross Profit: New product development that captures customer interest, PB/OEM
expansion, and improved turnover rates through inventory optimization created apositive cycle that inspired “something new”, increasing the gross profit margin to
31.6% (up 0.6pt YoY) The midterm management plan Visionary 2025’s targets of 2 trillion yen in sales and120 billion yen in operating profit were achieved a year ahead. Moving forward,
further growth strategies will be developed towards “Visionary2030.”

2

Review of the Midterm Management Plan “Visionary 2025”
 Achieved all targets one year ahead of the consolidated plan, maintaining high growth Continued sustainable growth, achieving an operating profit margin exceeding 6%, and more than doubling operating profit over
five years▶ vs. FY2019(Unit: Billion yen, unless otherwise indicated)

FY2019FY2024

Change(Unit: Billion yen)

Midterm plan

FY2024

ChangeNet sales

2000.02095.1+104.8％+222.2%

Operatingprofit

120.0

140.2

+116.8％+2.0ptOperatingprofit margin

6.0%

6.7%

+0.7ptNet sales1328.92095.1+157.7%Gross profit

27.9%

31.6%

+3.7ptOperatingprofit

63.1

140.2

Operatingprofit margin

4.7%

6.7%

▶ Three Outcomes from Visionary 2025

▶ (Reference) Comparison with the consolidated plan

Employee Growth

Emerging Insights

Unachieved Goals

 Adaptability
 Resilience to inflation
 Challenge of creating new business formats
 Emphasizing the appeal of physical stores(attractions not found in e-commerce)
 Earning Power PB/OEM Unique MD Inventory management, turnover improvement
 Inbound destination
 Productivity improvement

 Potential for domestic store
expansion (See slide 26)
 potential for PB expansion (see slide24) Approach to digital transformation
 Marketing (See slide 27)
 Utilization of app members
 Acquisition of new customers
 Improvement of LTV
 Revitalization of overseas business Revenue generation in financial
services
 Next-level growth in overseas business(See slide 29, 30)
 Direction for non-food in GMS (Seeslide 28)
 New opportunities in food retail (sushi
business)
 Advertising business aimed at
integrating with retail

Contribution to PPIH’s further
growth begins in FY2025, and fromFY2026, it will contribute tooperating profit/operating profit
marginGrowth opportunities, expected tocontribute to profits as new sales
drivers starting in FY2027

Confidence in future growthEngine for FY2025

3

Entering Execution Phase for 200 Billion yen Operating Profit
by 2030
 Regarding the achievement targets of Visionary 2030, the stance has shifted from ‘Seeing the path to an operating
profit of 200 billion yen’ to ‘Execution phase’ The operating profit of 140 billion yen is now a launch pad; achieving the 2025 profit target of 120 billion yen plus
an additional 20 billion yen, one year ahead of schedule. This means accumulating 80 billion yen over 5 years → 60
billion yen over 6 years.
 The three outcomes (see slide 3) bring the following: Short-term Effects: Cultivating the ability to turn environmental changes into earning opportunities through “adaptability
to change” × “earning power.” We have acquired steady growth capabilities.
 Effects After 1 Year: Growth opportunities that have become visible from the initiatives of the past few years and will be
realized from FY2025
 Effects After 3 Years: Areas that struggled in the past few years have seen bold impairment and efforts, marking the endof the worst period and a shift to an aggressive stance. Future growth opportunities are now being declared.

Additional 60 billion yen in operating profit
Discount Store+27 billion yen
GMS+10 billion yen
North America+12 billion yen
Asia

Key strategies such as PB/OEM, inbound demand, customer acquisition, and new store openings

Acquisition of new customer segments by strengthening non-food categories

Business expansion via new store openings. CAGR +16.3% (FY2025 to FY2030)

Stores with stable revenue have been established, and a direction for unprofitable stores has been
determined

Restructuring of financial businesses, etc.

+5 billion yen
Others+6 billion yen

4Overview of FY2024

5

Financial Results for the Year Ended June 30, 2024
【Period：July 1, 2023 – June 30, 2024】(Unit：Billion yen)

FY2023
Amount(Sales ratio)

FY2024
Amount(Sales ratio)

ChangeFY2024 Forecast
YoY※1

Net sales

1,936.8

2,095.1+158.3Gross profit

600.4

662.9

+62.5

+10.4%(31.0%)(25.6%)(24.9%)

522.7

+27.6

+5.6%

Operating profit

105.3

140.2

+34.9

+33.2%

Ordinary profit

111.0

148.7

+37.7

+34.0%Net income

66.2(3.4%)

88.7(4.2%)+22.5+34.1%

110.94148.64+37.70+34.0％SG&A

EPS (yen)

495.1(31.6%)+8.2%(5.4%)(5.7%)(6.7%)(7.1%)

Amount(Sales ratio)

2,086.0658.0(31.5%)

523.0(25.1%)

135.0(6.5%)

139.0(6.7%)

80.0(3.8%)

134.06

Progress

+0.4%
+0.7%
(0.1%)+3.8%+7.0%+10.9%+10.9％
6

Discount Store Business
FY2024 Change in Sales(Billion yen)

Sales reached 1.3186 trillion yen (+141.1 billion yen YoY), andoperating profit was 86 billion yen (+30.4 billion yen), bothwidely exceeding the revised target Same-store sales achieved double-digit growth at 110.1% YoY
 Tax-free sales continued to grow, reaching a cumulative total of
117.3 billion yen (+79.0 billion yen YoY)
 Non-tax-free sales also increased by 3.3% YoY, driven by successful
member-exclusive pricing strategies, promotional activities, productofferings capturing outdoor/event demand, and strong sales ofsummer seasonal items

0 The gross profit margin improved to 27.3% (+0.9pt YoY) PB/OEM sales reached 246.1 billion yen (+48.2 billion yen YoY),
accounting for 19.3% of total sales (+2.0pt YoY)

FY2024 Change in Operating Profit(Billion yen)

 Inventory optimization created a positive cycle of "something new"leading to improvements in both gross profit margin and inventory
turnover rate
 SG&A increased due to the 24 new store openings and investments inhuman resources, but remained within budget. The SG&A expense
ratio decreased by 0.9pt YoY, thanks to sales growth and reduced
utility costs.
▶ Gross profit margin of same stores in the DS business
28.0%

26.0%
0

24.0%
1Q

FY2022

Note: Before reflecting loss estimates

2Q

FY2023

3Q
FY20244Q

7

Discount Store Business：Progress of Various Strategies ①
 Through product development that captured demand, media exposure, and SNS strategies, sales reached246.1 billion yen (YoY +48.2 billion yen), with a composition ratio of 19.3% (YoY +2.0pt), surpassing FY2023.
New strategies will be formulated aiming for further growth.
TV commercials, media exposure, and SNS strategies improved
recognition, contributing to sales expansion

Product development was improved based on raw customer
feedback from ‘Maji Voice,’ which directly aligns with customer
needs



▶ New item from Maji Voice ▶ Ratio of PB/OEM in the domestic DS business
22.0%
20.0%
18.0%
16.0%

By developing various flavors from popular items such as “Mixed
Nuts” and “Red Ginger Rice Cracker” and expanding the productlineup, it contributed to the overall sales of the category

14.0%
12.0%

Responded to the feedback“Make the flavor stronger!”

1Q

2Q

FY2022

3Q

FY20234Q
FY2024

 Tax-free sales reached a cumulative total of 117.3 billion yen, widely exceeding the revised target. Despite
the yen’s appreciation, the path to becoming the No.1 destination for inbound customers is being pursued
by expanding market share.
▶ Tax-free sales of domestic DS businessStrengthening pre-travel promotional activities has
improved store recognition and contributed to attracting
more customers

In addition to “pricing,” “product assortment,” and “latenight operations,” we are enhancing character goods andcollaborations with manufacturers. This adaptability to thepreferences of inbound customers has helped us increase
our market share
Operational improvements, such as infrastructure
upgrades, have reduced tax-free register processing times
by 1 minute, reinforcing our capacity▶ Tax-free sales by nationality
FY2024FY2019Cumulative total

Cumulative total

6.1%
11.0%

17.3% 22.5%
13.6%
40.5%
S. Korea

Taiwan

China

ASEAN

Other

USA

6.6%
28.3%

18.3%
18.5%

17.4%

(Billion yen)

FY2024

vs. 2019

12

Number of inbound visitors*

240%

10

200%

8

160%

6

120%

4

80%

2

40%

0

Jul

Aug Sept Oct Nov Dec

Jan

Feb Mar Apr May Jun

0%*Based on statistical data from the Japan National
Tourism Organization (JNTO)

8

Discount Store Business：Progress of Various Strategies ②
 Opened 24 stores with diverse formats in FY2024. New store opening strategies have been identified as shown
below, expanding the potential for nationwide openings.
Don Quijote Ota＜Replacement-style＞(Opened on May 24, 2024)

 By closing old properties with highmaintenance costs and opening
new stores in nearby areas withthe latest formats, aiming tomaximize profitability

MEGA Don Quijote Yonago ＜Fresh Food MEGA Don Quijote-style＞(Opened on May 28, 2024

 Even with smaller sales floor, we
ensured aisle width, which
increased family customers. The
stores have evolved to competewith rivals, and sales haveexceeded targets

 Inherited the development cultivatedat Narimasu store, including fresh
produce, prepared foods, and nonfood MD for younger demographics,
and applied it to a wide range of age
groups MEGA DQ stores in local areas, rich infresh produce, can attract customers
from wide areas, and we had apositive response in western Japan.
We are expanding the potential for
store openings further west.

 Majica app members has surpassed 15 million. The “Maji-Toku Cycle” has been implemented to provide anaffordable shopping experience with surprises despite inflation
The “Maji-Toku (rewarding) Cycle” includes the following services: “Maji-Kaitori,” whichbuys back unsatisfactory items, “Maji-Kakaku,” which offers popular items at low
prices, and “Maji-Voice,” an item evaluation system based on raw customer feedback.
This creates a positive circle that leads to product development and customer
attraction, improving the customer experience.



Through promotions such as member-exclusive pricing and campaigns celebrating
the surpassing of 2 trillion yen in sales, the majica app members has exceeded 15
million. We are promoting new strategies to acquire more customers (see slide 27 fordetails).

9

GMS Business
FY2024 Change in Sales(Billion yen)

Maintained a high-profit structure with sales of 462.4 billion
yen (+0.5 billion yen YoY), operating profit of 34.2 billion yen(+6.2 billion yen YoY), and an operating profit margin of 7.4%(+1.3pt YoY)
 Sales at same stores grew to 101.0% YoY
 In H1, while profitability improved, customer numbers stagnated,
prompting a strategic shift. From H2, various promotional strategies,
such as price appeals on daily items and the “Price Voting” by
employees, proved successful.
 The gross profit margin of same stores increased to 27.1% (+0.2pt YoY)0

 Due to price appeals, the standalone gross profit margin for Q4 was
27.4% (-0.5pt YoY), but the gross profit amount remained the same YoY
due to increased sales

FY2024 Change in Operating Profit

 The introduction of new products through MD integration and thestrengthening of prime location development led to PB/OEM annual
sales of 109.9 billion yen (+20.5 billion yen YoY), with a composition
ratio of 25.7% (+4.8pt YoY), contributing to improved profitability(Billion yen)

 Although SG&A expenses increased due to advertising and promotions
for majica, the optimization of personnel placement and reduction in
utility costs resulted in a decrease of 4.0 billion yen (SG&A ratio -0.9pt YoY)

▶ GMS business - Changes in PB/OEM ratio
28.0%
24.0%
20.0%
0

16.0%
12.0%
1Q

2Q

3Q

FY2023

FY20244Q

10

“2019 UNY・UDR Midterm Plan” Achieving Operating Profit+20 Billion Yen
 Over five years since joining PPIH, UNY achieved dramatic progress, with sales increasing by +90.2 billion yen(114.7% vs. 2019), operating profit increasing by +23.1 billion yen (206.5% vs. 2019), and an operating profit(Unit: Billion yen)margin of 6.4% (+2.9pt vs. 2019), achieving the midterm plan
Establishment of UDRSales expanded through the creation of a new format combining
the strengths of UNY and DS (63 stores)
Improvement in Profitability of UNY









Gross profit margin increased due to higher composition ratio of
PB/OEM, evolution of MD strategy through organizational
integration, and system integration effects
Proper allocation of human resources and integration of
headquarter functions contributed to a decrease in SG&A ratio,leading to higher profitability
Annual average sales per store increased from 3.16 billion yen to
3.53 billion yen
Next Step: “Improvement of Customer Numbers”

FY2019 (Feb)(full-year total)

FY2024 (Jun)(full-year total)

ChangeNet sales

612.7

702.9

+90.2

Gross profit[margin]

196.9[32.1%]

224.7[32.0%]+27.8[(0.1)pt]

SG&A[margin]

175.2[28.6%]

179.9[25.6%]+4.7[(3.0)pt]

Operatingprofit

21.7

44.8

+23.1

Operatingprofitmargin3.5%

6.4%+2.9ptOperating profit(Billion yen)50As “Fighting UNY,” continue to aim for growth by maintaining pricecompetitiveness to attract existing customers

Non-food sales remained flat despite an increase in gross profit
margin. Lack of product procurement ability, product appeal, and 30"something new" prevented the acquisition of new customers. The
whole PPIH group will strive to develop UNY into a growth engine(details in slide 28)

Achieved Midterm Plan!

Operating profit(UNY)
Operating profit

UDR & Others
+10.6

(UDR)
Operating profit

UNY
+12.5

(plan)

10-10FY2019 (Feb) FY2020

FY2021

FY2022

FY2023

FY202411

Oversea Business
FY2024 Change in Sales(Billion yen)

North America experienced a decline in profits, but the effects of themeasures are evident. Gelson’s is still in the process of transformation.
Growth investments in new store openings and the supply chain havebegun. Asia also saw a decline in profits, but the results were as planned.
Both North America and Asia are showing signs of improvement.
■ North America

 Sales increased by 14 billion yen YoY due to the successful strategy of strengtheningdeli and sushi in response to inflation and changes in demand for home meals.
Store SG&A expenses landed at a decrease of 3.7 billion yen due to increased SG&A
expenses from growth investments
 Marukai CA and Hawaii saw increased profits. Gelson’s experienced a decline inprofits due to delays in pricing and MD strategies, but the effects of themeasures are beginning to show, and signs of improvement are emerging
0

FY2024 Change in Operating Profit(Billion yen)

 The gross profit margin landed at 37.4%, on par with FY2023, absorbing cost
increases through the growth of high-margin deli and sushi, strengthening the
PB/OEM ratio, and price appeal
 Marukai CA and Hawaii are expanding their business scale and differentiation
strategies through new store openings and business format conversions. Gelson’s
aims to increase sales and profits through top-line improvement from acquiring newcustomers and cost control through PMI (see slide 29).
■ Asia Sales increased by 2.8 billion yen YoY due to new store openings. Despite controllingpersonnel expenses, the increase in SG&A expenses associated with new store
openings resulted in a decrease in profits of 1.3 billion yen. Implemented cost
improvements at headquarters and structural improvements, including store
closures.
 Withdrew from 2 unprofitable stores, focusing on high-profit stores
 Achieved 11 new store openings in 6 areas, expanding business scale0 With the emergence of several stable profitable stores and the implementation of
impairment charges, the direction of unprofitable stores has been solidified andthey are on track to become profitable (see slide 30)

1. North America figures are the simple sum of DQ USA, MARUKAI, QSI, and Gelson’s. The results for Gelson’s are from July 2023 to June 2024, while the others are from April 2023 to March 2024.
2. Asia figures are the simple sum of PPRM (SG), PPRM (HK), DONKI Thailand, PPRM (TW), PPRM (MY), and Macau PRRM (MO). The results are cumulative from April 2023 to March 2024.
3. Gelson’s operating profit is calculated after deducting goodwill amortization (3.7 billion yen for the current period, 3.4 billion yen for the previous period).

12

Status of Major Assets, Liabilities and Net Assets(Unit: Billion yen)

(Unit: Billion yen)

June 2023
ActualJune 2023

June 2024
ActualJune 2024

ActualChangeActualChangeCurrent Assets

551.8

513.4

(38.4)

Current Liabilities

368.4

419.2

50.8

Cash and
Deposits

242.1

172.7

(69.4)

Accounts Payable

168.7

197.2

28.5

45.3

49.3

4.0

Noncurrent
Liabilities

649.1

532.2

(116.9)Corporate Bonds

261.6

191.1

(70.6)

Long-Term
Borrowings

272.5

224.7

(47.8)

Total Liabilities

1017.5951.4(66.1)

463.5

547.0

83.5

1481.11498.4

17.4

Account
Receivable Installment

55.4

57.3

2.0

Products

194.5

199.0

4.4

Non-Current
Assets

929.2

985.0

55.8

Buildings, etc.

288.0

308.7

20.7

Land

318.7

356.7

37.9

Intangible
Fixed Assets

88.5

94.6

6.1

Lease andGuarantee
Deposits

71.8

68.7

(3.1)

Total Assets

1481.11498.417.4＜Status of major assets＞
Non current asset▶ Tangible fixed assets：735.5 billion yen(+46.3 billion yen)・ Investment related to store openings, etc.
89.3 billion yen
・ Depreciation and amortization
37.4 billion yen

Short-term
Interest-bearing
Debt1

※1

Net Assets
Liabilities and Net
Assets※2

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：465.0 billion yen(–114.4 billion yen)
＜Status of net assets＞▶ Net worth: 536.5 billion yen(+83.2 billion yen YoY)
▶ Capital adequacy ratio: 35.8%(+5.2pt YoY)

＜Others＞▶ Net D/E ratio： 0.54x (–0.20x YoY)
▶ ROE: 17.9% (annual basis/+2.2pt YoY)

 Subordinated bonds of 140.0 billion yen were redeemed in full ahead of maturity by issuing unsecured bonds of 70.0 billion yen and using
cash and deposits.
 Growth investments continue, yet financial soundness improves with higher capital adequacy ratio and lower net D/E ratio.

13

Status of Cash Flows and Capital Expenditure▶ Status of cash flows(Unit: Billion yen)

FY2023
ActualFY2024
ActualChange

180.4

246.2

65.8

Cash Flows fromOperating Activities

138.0

150.6

12.6

Cash Flows from
Investing Activities(62.0)(94.7)(32.7)Cash Flows from
Financing Activities(18.2)(129.9)(111.7)

Changes During the
Period65.8(59.0)(124.8)

246.2

187.2

(59.0)

76.0

55.8(20.1)

Free Cash Flow1

1. Free Cash Flow = CF from operating activities + CF from investing activities▶ Status of capital expenditures
Capital Expenditures

61.2▶ Cash in factors: Pre-tax net profit of 130.5 billion yen,depreciation of 46.2 billion yen, and an increase inaccounts payable of 26.1 billion yen

Balance at Beginning of
PeriodBalance at End of Period＜Operating CF: +150.6 billion yen＞

Cash out factors: Payments for corporate taxes andothers of 48.7 billion yen＜Investment CF: –94.7 billion yen＞

▶ Cash out factors: 86.2 billion yen for purchase ofproperty, plant and equipment relating to store
openings and 8.4 billion yen for purchase ofintangible fixed assets＜Financing Activity CF: –129.9 billion yen＞

▶ Cash in factors: Income from bond issuanceamounted to 69.8 billion yen and income from longterm borrowing was 50 billion yen
Cash out factors: Expenditures for bond redemptionof 150.9 billion yen, repayment of long-term loans of
84.8 billion yen, and dividend payments of 12.5 billion
yen＜Breakdown of Capex ＞▶ Domestic DS business 37.8 billion yen

95.9

34.7

GMS business 27.6 billion yen
Overseas business 17.8 billion yen
Financial business 2.8 billion yen
Others 9.8 billion yen

14Shareholder Returns
Towards a dividend policy that balances growth investment and shareholder returns
 For FY2024, the company plans to raise its dividend for the 21st consecutive fiscal year. The initial forecast of 21 yen per
share has been revised upward to 30 yen per share, including a commemorative dividend of 9 yen per share to celebrategroup sales surpassing the 2 trillion yen mark, and the dividend payout ratio is expected to exceed 20% for the first time.
 FY2025 is expected to increase the dividend to 34 yen, marking the 22nd consecutive increase in dividends
 Based on a “progressive dividend policy”, a dividend payout ratio of 25% is considered from the conventional 20%, striving
to balance growth investment and shareholder returns
Dividends(yen)
50

Payout Ratio(%)
Annual dividend (left axis)

45

25.0

Payout ratio (right axis)

40

20.0

35
30

15.0

25

30

15
10

0

Shareholders who are listed and recordedin the shareholder register as of the end ofJune and December and hold more than
100 shares will be presented with majica
points worth 2,000 yen

Shareholding Composition by Owner
100%
80%

20

5

Shareholder Benefits

10
FY2019

15

16

17

34

20

10.0

60%
40%

5.0

FY2021

FY2022

FY2023

FY2024(Planned)

FY2025(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

0.0

18.6%

59.4%

6.0%

6.0%
18.5%
3.1%
12.9%

6.0%
18.8%
2.9%
12.8%

18.3%
3.2%
12.9%

57.2%

56.9%

57.3%

20%
0%

FY2020

18.1%
2.3%

1.6%

FY2021

2.3%

FY2022

2.6%

FY2023

2.3%
FY2024■ Japanese individuals and others ■ Foreign corporations and individuals■ Other Japanese Corporations■ Financial institutions■ Financial instrument business operators
Treasury stocks

15

Commitment to ESG（1/2）
 Balancing the resolution of environmental and social issues with business growth to enhance the sustainability of
PPIH’s operations
 Utilizing the evaluations of ESG rating agencies as an objective assessment, leading to high ratings and inclusion
in indices
Progress (FY2024)

Midterm Goals


CO₂ Emissions Reduction: Approximately 25.8% (vs. FY2013)

Started hearing from business partners on their policies andprogress on climate-related issues, aiming to set reduction
targets for Scope 3



Plastic reduction: Reduced by 65.8% (vs. FY2019)Conducted a self-check questionnaire on human rights, labor,
safety and hygiene, etc., continuously from June 2022,
targeting about 2,400 factories of PB/OEM manufacturing
partners, and collected 100% of the responsesStarted third-party audits for PB/OEM manufacturing
partners• Increase female store managers to 100 (by FY2030)

Female store managers: 39 (an increase of 26 from FY2021)• Improve the retention rate of female employees =Reduce the turnover rate to 5% (by FY2030)

• Promote the next-generation executive development
programTurnover rate of female employees: 7.6% (reduced by 4pt
from FY2021)

Conducted training for executives and executive candidates,with 160 participants

Established the Committee and held it 4 times to enhance
the transparency of the process

Implemented measures for regular updates of the BCP
based on Business Continuity Management (BCM)• Reduce CO₂ emissions from stores by 50% comparedto FY2013 (by FY2030)

E• Understand the emission volume for each categoryof Scope 3 and set reduction targets• Reduce the amount of plastic used for customer
service in stores by 70% compared to FY2019• Thoroughly implement the sustainable procurement
policy and supply chain code of conduct

SG・Establish and operate the Nomination &Compensation Committee
・Formulate and disclose the Business Continuity Plan
(BCP)

16

Commitment to ESG（2/2）
ESG investments and indices incorporating PPIHIn FY2024, GPIF newly included PPIH in the ‘MSCI Japan ESG Select Leaders Index’ for ESG investment.
Morningstar Japan ex-REIT
Gender Diversity Tilt Index

Major Initiatives for FY2024
Strengthening response to
climate change
In FY2024, to reduce CO₂ emissions, PPIH
started using renewable energy at 6 newstores and 1 location (in total, renewableenergy is being used at 22 stores and 1
location so far in Japan)
 In the new headquarters building relocated in
May this year, ‘CO₂ free electricity’ is being
utilized

Efforts to reduce plastic
Based on the FY2023 target, we mainly
promoted initiatives in services tocustomers
 The material of spoons and straws was changed
to paper and wood, and a charge wasintroduced for them

 In collaboration with Suntory Foods
International Ltd., PPIH promoted the “Bottle to In four stores in the Kanto region, we have
Bottle” recycling of PET bottles
started supplying electricity through off-site PPA
for the first time in the company

Building a supply chain considering
human rights and the environment
Promoting initiatives with PB/OEM
manufacturing partners
 Revised the Supplier Code of Conduct•

Prevention and reduction of excessive overtime
work•

Efforts towards procurement of renewableenergy•Effective use of resources including water•

Proper treatment of waste and wastewater,
prevention of pollution, etc.

 Started third-party audits to identify risks inthe supply chain and for objective evaluation
 Conducted seminars for in-house productprocurement personnel, with a total of 406
participants

17Trends in Various Management Indicators
 While maintaining growth investments for Visionary 2030, the aim is to enhance corporate value by stabilizing high ROE
through improved profitability and strengthening dividend policies, all with a focus on capital costs and stock prices
ROE

ROE

18%

Net D/E ratio
Capex to operating CF ratio

17%
16%

200%

15%

(Billion yen)
800

180%

14%
13%

160%

12%

FY2022

FY2023

FY2024600

FY2025…

140%

In FY2024, there was a boost from foreign exchange gains, while FY2025 saw adecline due to foreign exchange losses. However, a stable range of around 1516% is maintained
DS

GMS

Oversea

Consolidated

120%
100%

ROIC

400

80%
60%

10%

200
40%
20%

5%

0%

0%

FY2023

FY2024FY20250(forecast)
FY2022

FY2023

FY2024

Interest-bearing debt
Capex/Operating CF

FY2025(forecast)•

FY2022In FY2024, the DS and GMS businesses showed significant improvementcompared to FY2023, while the overseas business temporarily declined due toinvestments in new stores but is expected to improve in FY2025

Net assets
Net D/E ratio•

Net assets have steadily increased, and interest-bearing debt
decreased in FY2024 due to the redemption of subordinated bonds.
The net D/E ratio temporarily rose in FY2022 due to share buybacks
but has steadily improved since FY2023.

•

Capital investment is planned to be 90 -100 billion yen each period.
While investing in future growth, sufficient free cash flow is secured.

18

Targets for FY2025

19

FY2025 Full-Year Consolidated Earnings Forecast
 FY25 targets: sales of 2.22 trillion yen, operating profit of 150 billion yen, operating profit
margin of 6.8%, aiming for 36 consecutive years of sales and operating profit growth(Unit: Billion yen)

FY2024
AmountNet sales
Gross Profit
SG&A
Operating profit
Ordinary profit
Net income
EPS(yen/share)
Capital investment

2Q Earnings Forecast (Cum.)AmountFull-Year Earnings Forecast
AmountYoY

YoY

2095.11120.4+6.9％

2220.0

+6.0%

662.9
(31.6%)
522.7(24.9%)
140.2(6.7%)
148.7(7.1%)
88.7(4.2%)

353.6

+6.8％

700.0

+5.6%

272.4

+6.6％

550.0

+5.2%

81.1

+7.4％

150.0

+7.0%

67.2

-8.7％

135.4

-9.0%

43.2

-10.5%

86.5

-2.5%

72.37円-10.5%

144.98-2.5%

148.6495.8(31.6％)(24.3％)(7.2％)(6.0％)(3.9%)(31.5％)(24.8％)(6.8％)(6.1％)(3.9%)

94.0 +x

Note: Assumed Exchange Rates are 1 USD = ¥140.00, 1 HKD = ¥18.65, 1 SGD = ¥108.54, 1 THB = ¥4.15, 1 MYR = ¥31.39, 1 TWD = ¥4.62, 1 MOP = ¥18.15

20

FY2025 Performance Forecast
Sales(Billion yen)

■ Sales New Stores: Domestic 30 stores +x, Overseas 7 stores Same stores YoY• DS Business: 104.1% (tax-free sales target 150 billion yen)
• GMS Business: 101.1%■ Gross Profit Margin: 31.5% (-0.1pt)
 DS: 27.7% (+0.4pt): PB/OEM sales will reach 320 billion yen (130.0% YoY),
contributing to the improvement of the gross profit margin GMS: 34.1% (-0.7pt): Non-food enhancement to increase gross profit, but total
profit margin is likely to decrease due to stronger pricing strategies against
competitors and reduced tenant revenue. Appropriate gross profit margin level tobe maintained0Operating profit(Billion yen)0

Notes:

 North America 38.0% (+0.6pt): Sushi and deli items, which are performing well withhigh gross profit margins, will see an increase in trainers to enhance and improve
production volume and quality Asia 37.6% (+0.5pt): Continuous product development and promotion
enhancement will improve the gross profit margin and sales composition ratio of
PB/OEM and direct import products■ SG&A Ratio: 24.8% (-0.1pt)
 DS: Costs will increase due to store opening expenses, investment in humanresources, increased utility costs from reduced government subsidies, and higher
promotion costs for majica. Labor costs will be controlled through productivity
improvements like self-checkout and electronic shelf labels
 GMS: Productivity improvements will reduce labor costs. SG&A expenses willslightly increase due to higher utility costs and strengthened promotions to attract
customers, but SG&A ratio is expected to be lower than the previous year North America: Costs will increase due to higher labor costs from wage increases
and growth investments in new store openings in Hawaii and California■ Capital Investment: 94 billion yen +x
 Domestic DS Business: approximately 31 billion yen
 GMS Business: approximately 8.7 billion yen
 Overseas Business: approximately 26 billion yen
 IT Investment: approximately 18 billion yen Others: approximately 10.3 billion yen

1. Assumed Exchange Rates are 1 USD = 140.00 yen, 1 HKD = 18.65 yen, 1 SGD = 108.54 yen, 1 THB = 4.15 yen, 1 MYR = 31.39 yen, 1 TWD = 4.62 yen, 1 MOP = 18.15 yen
2. Calculated after deducting the goodwill amortization budget (approximately 3.5 billion yen).

21

Visionary 2030

- Toward operating profit of 200 billion yen -22

Discount Store Business: ‘Key Strategies’ for Achieving
Continued High Growth In addition to individual store management and delegation of authority, the execution of key strategies
will lead to the expansion of the top line, profitability enhancement, acquisition of customer popularity,
and response to cost inflation, thereby achieving continuous and valuable business growth

PB/OEM

Inbound

New Store Opening

CustomerAcquisition＜FY2027 Plan＞＜FY2027 Plan＞

Sales of 500 billion yen

Sales of 175 billion yen＜FY2027 Plan＞＜FY2027 Plan＞••

Double PB/OEM sales andswitch products with NB
to improve gross profit
margin and increase
profitability.
Profitability
improvement throughgross profit margin
enhancement••

Creating a positive cycleof shopping experiencesand visit motivation to
make Don Quijote Japan’s
No.1 must-visit
destination
Expand the top line
through increased taxfree sales+100 new store openings••

Developing a variety ofbusiness categories that
other companies cannot,
enabling us to approach
new customer segments
and expand the scope of
new store openings
Expand the top line
through increased
domestic market share

30 million majica members,
aiming to make 50% of theyoung population members•

Engaging younger
demographics throughmedia approaches andnew app initiatives•

Acquire new customers•

Increase visit frequencyof existing customers

IT/Digital
Building a managementfoundation to achievesustainable businesssupport towards Visionary
2030•

Create an environment
capable of growth ininflationary conditions
through large-scale IT
investments•

Respond to cost
inflation environments+27 billion yen in operating profit for DS business by FY2030
23

PB/OEM Strategy: FY27 Sales Plan of 500 billion yen
 Double PB/OEM sales and switch with non-brand products to improve gross profit
margin and increase profitability
 Potential for PB Expansion
 By reviewing categories that can be converted to PB,
potential for expansion has been identified▶ PB/OEM Plan Start offering more OEM items in the regular shelves tofurther expand PB. Increase their share in the regular
items by FY2027.
(Unit: Billion yen)
FY2024

 Example: Swiftly switch staple products with low brandloyalty to OEM to improve profits
 Product Development in Categories PPIH excels At
 Popular categories, such as men’s underwear, suitcases,
pans, cosmetics, and snacks, develop highly uniqueproducts, which non-brand products cannot achieve,
expands category share Supply Chain Reform As the next step in PB conversion, target staple products fordevelopment. By reviewing the supply chain, enable smalllot production and promote OEM conversion of staple
shelves.

 Improve quality through stricter process management andinspection(Full-year total)

FY2027 Plan

Change

246.1

500.0

+253.9

16.2%

27.4%

+11.2pt

Net sales(billion yen)

Share ofsales within
regular items(June only)▶ Supply Chain Reform
Previously: Per-item
factory selection

 Reduce costs through development from raw materials,
changing production areas, and improving logistics
 Lower costs and reduce production lots by consolidatingproduction factories(Full-year total)

Going forward: Perproduct groupfactory selection

Flying pan

PPIH

Pot
Plate

PPIH Kitchenware
 Smaller lots
 Lower costs

24Inbound Strategy: FY2027 Sales of 175.0 billion yen
 Don Quijote’s unique strength is offering exclusive amusement and shopping experiences = enhancing
customer motivation with ‘shopping experiences only at Don Quijote.’ Various strategies will create a ‘desire to revisit,’ leading to further shopping experiences. Despite challenges
like yen appreciation, Don Quijote will become Japan’s No.1 must-visit destination. This will achieve the FY2027
tax-free sales target of 175.0 billion yen (an increase of 57.7 billion yen YoY from FY2024).

Leveraging popularity to enhance visit motivation

Shopping experiences only at Don Quijote

 Customer Attraction Strategy
 Targeting “nationalities and age groups that willvisit once aware,” using social media promotions
and collaborations with airlines to highlight store
attractions and motivate visits.

 Retail Store as a Tourist Attraction
Offering a unique in-store experience with dense
displays, abundant POPs, and distinctive layouts anddecorations for each store, making it a timeconsuming yet enjoyable visit unlike any other retailstore Majica Globalization(Scheduled for release in H2 of FY2025)
 Enhancing visit motivation by converting visiting
customers into members and improving
satisfaction through a review function
 New Store Openings
 Expanding sales and capacity by opening 7-8 small
satellite stores near flagship tax-free stores in busy
districts by FY2027

positive cycleofshopping
experiences
and
visit
motivation

 Continuous New Discoveries
From trendy items to exclusive products not foundin other stores, and even intriguingly quirky items,
customers can enjoy a treasure hunt experience,leading to impulsive purchases
 Unbeatable Prices
With competitive pricing, coupons, and spot sale
items, customers feel they are getting incredible
deals, even when buying in bulk
Visitors from All Over the World People fromvarious countries and regions visit Don Quijote!

25

New Store Opening Strategy: Over 100 Stores by FY2027
 Developing diverse business formats that other companies cannot replicate has led to the creation of
more profitable models. Additionally, opening stores in “rail side” areas has enabled approaches to
new customer segments, expanding opportunities for store openings.
 Improved gross profit margin through increased sales of PB/OEM and tax-free products, along with productivity improvements
controlling SG&A expenses, has led to stores achieving a high-profit structure. In addition to high-profit new business formats, theacceleration of store openings across various formats has become possible.
 By expanding the opening of rail-side and mall tenant types, the approach to new customer segments will be broadened. Furthermore,by adding inbound types, the opening of highly profitable formats will be strengthened to improve profitability.

 DS Store Formats & Potential for New Openings (A total of over 100 stores are planned by FY2027)
 Pure type
 Openings: 9-10/year Located in areas with a populationof over 100K where young families
are increasing and no stores
currently exist
 New MEGA type
 Openings: 9-10/year Large stores over 800 tsubo (2645㎡), similar to Pure Type in concept
 Fresh food MEGA type
 Openings: 2/year Located in the eastern Japan area,with potential for expansion in thewestern area

 Inbound type
 Openings: 3-4/year Opening near existing tax-freeflagship stores and local tourist
spots
 Rail-side type
 Openings: 11-12/year Opening in areas along thecommuting routes from stations in
the Kanto and Kansai regions
 Mall tenant type
 Openings: 2-3/year Opening as tenants in largecommercial facilities with highcustomer attraction

26

Customer Acquisition Strategy:
FY2027 Target of 30 Million Majica Members

 Utilizing media and new app initiatives, the goal is to double the number of majica members to 15
million by FY2027, aiming for 50% membership among the youth population1
Increasing Visit Frequency of
Existing Customers

New Customer Acquisition
 TVCM Linked Initiatives
 Implement large-scale campaigns centered around TVCM toappeal to the younger generation who have not been interested
in Don Quijote. The strategy includes approaching those whohave never visited and encouraging visits from existingcustomers
 Student Discounts/Key Opinion Leaders (KOL) Propose necessary products for school events on a special
section and offer student-only discounts to increase contact
opportunities.
 Continuously provide opportunities to engage with Don Quijote
through live product introductions by social media influencers
who resonate with the younger generation, expanding theirintention to visit the store Promoting Visits By analyzing data from 15 million majica members, services andcoupons will be provided based on the attributes of existing
members to effectively increase the number of visits Implement a digital stamp card feature that rewards customers
with gifts upon achieving game-like missions within the app toencourage frequent visits Preventing Customer Churn/Re-engaging Lapsed Customers with
Marketing Automation (MA)2
 For customers whose visit frequency has declined or who have notvisited for a certain period, strengthen touchpoints outside theapp. Combine this with MA to approach them with incentives torevisit, aiming to bring back 1 million customers by FY2027

Member Host awards and festivals focused on categories that gather
items for the younger generation to attract young fans.

Visits overthe past year

No visits overthe past year Real Event Initiatives

Nonmember
1.
2.

Reactivate
inactive
members

Acquire newcustomers/
members

Prevent
churn
Encourage
revisitVisit
frequency

Membership
AcquireImprove visit
frequency

Membershipconversion

Ages 15-24. As of FY2024, 20.1% of the youth population are majica members
Marketing Automation

27

GMS Business Strategy: Entering a major reform phase fornon-food items, alongside further growth in food!
 Food items continue to grow in both customer numbers and sales due to competitive pricing and high-quality
ratings from customer surveys
 Non-food items have seen significant improvements in gross profit margins but sales remain flat, failing to attract
new customers. Comprehensive improvements will be made to expand revenue.
 Five non-food experts at DS have been appointed as leaders at UNY, with former top executive Mr. Sakakibara at
the helm of the new system. Additionally, branch managers with proven track records at DS will lead store
improvements, driving drastic transformation in the non-food sector with the full support of the group.
 Under the new leadership, UNY will change. Initial results will be demonstrated at 23 key stores and then sharedwith other stores.
Food items

Pricing

Sales floor (stores)

Non-food (items)<Fresh Produce> Strengthen procurement
and leverage longstanding achievements
in production areas toenhance freshness,quality, and originality<Competitive Strategy>
 Continue pricecompetition for NB
products, focusing onfood and consumable
goods that performed
well in FY2024, to attract
more customers<Communication>
 Implement “somethingnew” through focused
single-item sales andspot procurement<Products/Categories>
 Leverage groupprocurement capabilities
to add new categories
and differentiate fromcompetitors to attract
new customers.

<Prepared Foods>
 Intensify collaboration
with Kanemi Food todevelop new menu items<Speed> Apply the same pace ofchange andimprovement toproducts as in the DS
business

Positive cycle(Compound interest)<Return and Circulation>
 Enhance competitivenessusing improved
profitability fromstrengthening non-fooditems

GMS commits to a midterm plan to increase operating profit +10 billion yen by FY2030
28

North America Business Strategy: Growth and profit
contribution through business expansion via new store
openings
 Tokyo Central has become a stable revenue model, paving theway for multi-store expansion
 Marukai CA 1. Product lineup tailored to customer preferences; 2. Revision of pricing strategy;
3. Strengthening the production of high-profit items like sushi and deli at thecentral kitchen. These efforts have led all 10 same stores to achieve an average
operating profit margin of over 13%.
 New store openings are planned for FY2025 after a six-year hiatus, with more thanfour stores per year planned from FY2026 onwards.
 Hawaii Growth has been advanced by converting to the Tokyo Central format andstrengthening high-gross-margin items like sushi and deli to meet the shift
towards home dining due to inflation
 The opening of the first large store since entering Hawaii in 2006 marks amilestone for growth Gelson’s To adapt to changes, the following actions will be taken: 1. Significant impairment
will be implemented; 2. The management system will be revamped
 Under the new system, the brand image will be maintained while enhancing MDchanges, pricing, and promotions to ensure profitability▶ Target figures for FY2030
FY2024(Unit: Billion yen)

FY2025

FY2030247.0(-0.3)

420.0(+172.6)

8.2

9.5(+1.3)

20.2(+12.0)Operatingprofitmargin3.3％

3.8％(+0.5pt)

4.8％(+1.5pt)

EBITDA

11.7

14.2(+2.5)

30.0(+18.3)

Sales

247.4

OperatingprofitEBITDA
5.7％
7.1.％
4.7％
(+1.0pt)(+2.4pt)
marginNote: The figures in the parentheses are compared to FY2024▶ Sales growth image through growth strategies
CAGR+16.3％(FY25 - FY30)(Unit: Billion yen)

 By actively promoting the quality of products and excellent customer service, newcustomers will be attracted, and former ones will be regained Efficiency will be improved through the integration of headquarters functions andshared services over a four-year plan.
 Sushi Restaurants
 Two stores opened in California and Guam. Using retail expertise to create locallytailored menus has been well-received, offering profit opportunities in North
America. Plans include combined retail and dining establishments

Note: Calculated based on figures before goodwill amortization. After goodwill
amortization, FY24 is 4.6 billion yen, FY25 is 6.0 billion yen, and FY30 is 16.7 billion
yen.

29

Asia Business Strategy: Recovering from the Worst Period Multiple stores generating stable revenue have been created, and the direction for unprofitable
stores has been solidified
 Profitability improvement is on track Stores with an appropriate area (around 350 tsubo (1157㎡)) and an
operating profit margin exceeding 10% are emerging
 Due to the implementation of impairment measures, 15 out of the 45
stores, which were previously unprofitable, have turned profitable The average operating profit margin of profitable stores is over 8%,
showing an improving trend in profitability. Including stores that willturn profitable in FY2025, 40 stores will maintain an operating profit
margin of over 8%.

 Acceleration of MD Cycle and Reduction of Operating Costs
 To break away from monotonous MD, the MD cycle will be
accelerated to a monthly basis. The “something new” cultivated in the
DS business will be integrated to strengthen MD strategy
 Operating costs will be improved by utilizing shared services inregions with low labor costs and consolidating global headquartersfunctions to reduce headquarters expenses
 Efficient small and medium-sized store openings will be pursued in
the future Operating Profit to Exceed 5 Billion Yen by FY2030
 Specific growth strategies toward FY2030 will be explained in theinterim financial results announcement▶ Target figures for FY2030
FY2024(Unit: Billion yen)

FY2025

Sales

85.2

88.0
(+2.8)

Operatingprofit0.3

1.6(+1.3)

Operatingprofitmargin0.4％

1.8％(+1.4pt)

Profitable
Stores30 stores

40 stores

Unprofitable Stores15 stores

4 stores

FY2030

5.3(+5.0)

Note: The figures in the parentheses are compared to FY2024▶ Revenue Model for Small and Medium-Sized Stores
Store

Features

Floor space

Approx.
350 tsubo(1157㎡)

Appropriate size forgenerating profit

Annualsales

Around
1.4 billion yen

Sales based on the drawing power ofthe location

Gross profit

Around37%

Product lineup with high gross profit
margins centered around fresh
produce

SG&A

Around27％

Staffing based on area and MD,Land rent, rental fees, andinvestment amount

Investment
amountLess than
0.4 billion yen

Prudent investment cap that cangenerate profit

30Appendix

31

Financial Results for Q4【Period: April 1, 2024 – June 30, 2024】(Unit: Billion yen)Previous Q4 Results

AmountRatio

Current Q4 Results※1

AmountRatio

ChangeYoY

Net sales

479.6

100.0％

527.7

100.0％

+48.1

10.0％

Gross profit

149.9

31.3％

169.2

32.1％

+19.3

12.9％

SG&A

126.4

26.3％

139.3

26.4％

+12.9

10.2％

Operating profit

23.5

4.9％

29.9

5.7％

+6.4

27.1％

Ordinary profit

30.3

6.3％

35.1

6.7％

+4.8

15.9％

Net income

14.7

3.1％

16.6

3.1％

+1.9

13.2％

32

Q4 results by business segment【Period：April 1, 2024 - June 30, 2024】(Unit : Billion yen)

DS

GMS

Asia

North America

Others / Adjustments

4Q
FY20234Q
FY2024

Change4Q
FY20234Q
FY2024

Change4Q
FY20234Q
FY2024

Change4Q
FY20234Q
FY2024

Change4Q
FY20234Q
FY2024

ChangeNet sales

299.6

333.9

34.4

110.6

112.2

1.6

20.4

23.6

3.1

56.0

62.5

6.5

(7.0)

(4.5)

2.6

Gross profit

79.7

92.5

12.8

39.0

39.5

0.4

7.5

8.6

1.1

21.6

23.6

2.0

2.0

5.0

3.0

Gross profit
margin

26.6％

27.7％

1.1pt

35.3％

35.2％

(0.1pt)

36.5％

36.4％

(0.1pt)

38.7％

37.8％

(0.9pt)

-

-

-

SG&A

66.5

72.2

5.7

31.6

32.4

0.8

7.7

8.6

0.9

19.6

23.4

3.8

0.9

2.7

1.8

Operatingprofit

13.2

20.4

7.1

7.4

7.1

(0.4)

(0.2)

(0.1)

0.1

2.0

0.2

(1.8)

1.1

2.4

1.3

Operatingprofit margin

4.4％

6.1％

1.7pt

6.7％

6.3％

(0.4pt)(1.0％)(0.2％)

0.8pt

3.6％

0.3％

(3.2pt)---【Period：July 1, 2023 - June 30, 2024】(Unit : Billion yen)

DS

GMS

Asia

North America

Others / Adjustments

4Q
FY2023(Cum.)

4Q
FY2024(Cum.)

Change4Q
FY2023(Cum.)

4Q
FY2024(Cum.)

Change4Q
FY2023(Cum.)

4Q
FY2024(Cum.)

Change4Q
FY2023(Cum.)

4Q
FY2024(Cum.)

Change4Q
FY2023(Cum.)

4Q
FY2024(Cum.)

ChangeNet sales

1177.51318.6

141.1

461.9

462.4

0.5

82.5

85.2

2.8

233.4

247.4

14.0

(18.4)(18.5)(0.1)

Gross profit

311.0

360.2

49.2

158.9

161.0

2.2

30.3

31.6

1.3

87.2

92.5

5.3

13.0

17.5

4.6

Gross profit
margin

26.4％

27.3％

0.9pt

34.4％

34.8％

0.4pt

36.8%

37.1%

0.3pt

37.4%

37.4%

0.0pt

-

-

-

SG&A

255.4

274.2

18.8

130.8

126.8

(4.0)

28.7

31.3

2.6

78.9

87.9

9.0

1.3

2.4

1.2

Operatingprofit

55.6

86.0

30.4

28.1

34.2

6.2

1.6

0.3

(1.3)

8.2

4.6

(3.7)

11.7

15.0

3.3

Operatingprofit margin

4.7％

6.5％

1.8pt

6.1％

7.4％

1.3pt

2.0%

0.4%

(1.6pt)

3.5%

1.9%

(1.7pt)---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 March 2024, while Gelson’s is from July 2023 to June 2024.
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 cumulative for the period from April 2023 to March 2024.
3. Gelson’s operating income is calculated after deducting amortization of goodwill (Q4 FY2024: 1 billion yen; Q4 FY2023: 0.9 billion yen; FY2024 (cum.): 3.7 billion yen; FY2023 (cum.): 3.4 billion yen).

33

Overview of Q4 results by business on a consolidated basis【Period: July 1, 2023 – June 30, 2024】(Unit: Billion yen)
Q4 FY2023 (Cum.)AmountDomestic DS

Q4 FY2024 (Cum.)
Ratio

AmountRatio

YoY

1133.358.5%

1275.1

60.9%

12.5%

Home electrical appliances

82.4

4.3%

90.2

4.3%

9.4%

Miscellaneous household goods

300.8

15.5%

345.4

16.5%

14.8%

Food products

520.5

26.9%

569.1

27.2%

9.3%

Watches and fashion merchandise

150.2

7.8%

168.4

8.0%

12.2%

Sporting goods and leisure goods

62.6

3.2%

81.1

3.9%

29.6%

Other

16.8

0.9%

20.9

1.0%

24.5%

Domestic GMS

417.7

21.6%

411.2

19.6%

(1.6%)

Clothing

48.7

2.5%

44.5

2.1%

(8.7%)

Household goods

74.3

3.8%

65.1

3.1%

(12.3%)

Foods

292.4

15.1%

301.4

14.4%

3.1%

Other

2.3

0.1%

0.2

0.0%

(91.5%)

Overseas

313.6

16.2%

329.6

15.7%

5.1%

North America

231.5

12.0%

244.7

11.7%

5.7%

Asia

82.0

4.2%

85.0

4.1%

3.6%

Other1

72.3

3.7%

79.2

3.8%

9.5%

Total

1936.8100.0%

2095.1100.0%

8.2%

1. Includes tenant leasing business and credit card business.

34

Breakdown of SG&A expenses【Period：April 1, 2024 – June 30, 2024】(Unit : Billion yen)

Q4 FY2023
AmountQ4 FY2024
Ratio

Amount

Ratio

YoY

SG&A

126.4

26.3%

139.3

26.4%

10.2%

Salaries and allowances

47.1

9.8%

49.6

9.4%

5.3%

Rent

15.1

3.2%

15.9

3.0%

5.3%

Commission paid

14.4

3.0%

17.9

3.4%

23.9%

Depreciation

8.9

1.9%

10.1

1.9%

12.7%

Utility

7.7

1.6%

7.2

1.4％

(5.6%)

Other

33.1

6.9%

38.6

7.3%

16.6%

【Period：July 1, 2023 – June 30, 2024】(Unit : Billion yen)

Q4 F023 (Cum.)AmountQ4 FY2024 (Cum.)
Ratio

Amount

Ratio

YoY

SG&A

495.1

25.6%

522.7

24.9%

5.6%

Salaries and allowances

185.5

9.6%

194.4

9.3%

4.8%

Rent

59.5

3.1%

62.3

3.0%

4.7%

Commission paid

61.5

3.2%

64.6

3.1%

5.0%

Depreciation

34.4

1.8%

37.8

1.8%

10.0%

Utility

33.5

1.7%

29.1

1.4%

(13.1%)

Other

120.9

6.2%

134.6

6.4%

11.3%

35

FY2024 New store openings

Business

1Q

Format

Jul

Aug

2Q
Sept

Oct

Takamatsu
Marugame-Machi(Kagawa)

Nov

Dec

Tsurugashima(Saitama)
KeikyuKamata(Tokyo)

Jan

Feb

4Q

Discount Store

Mar

Apr

May

Jun

Imizu
(Toyama)Narimasu(Tokyo)Kaizuka(Osaka)Uenoshiba(Osaka)Neyagawa(Osaka)Hikone(Shiga)GaLaTown
Aomori(Aomori)Uguisudani(Tokyo)Tsubame(Niigata)

Oita
Chuomachi(Oita)

Kagoshima
Chuo
Ichibangai(Kagoshima)

Shin-Shizuoka
Ekimae(Shizuoka)

AzuminoInterchange(Nagano)Ota(Gunma)Mutsu(Aomori)

DQ

Full-year Forecast

New store
openings:
24 stores

Yonago(Tottori)

Small

Overseas
1

3Q

Asia

North
America

Shibuya
Dogenzakadori(Tokyo)CITY LINK
Nangang(Taiwan)

DOMISE
Ario Yao(Osaka)Kirakira Donki
Yokohama
World Porters(Kanagawa)

Kirakira Donki
Tanuki Koji
(Hokkaido)

FashionIsland(Thailand)

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

The MallLifestore
Bangkapi(Thailand)

KaoHsiung
Talee(Taiwan)Mid Valley
Megamall(Malaysia)

Studio City
(Macau)Gelson’sWest LA(California)

Kira Kira
Donki
Hakata Marui(Fukuoka)

NU Sentral(Malaysia)

New store
openings:
12 stores2
Village ofDonki(Guam)

1. Overseas stores are indicated in opening months.
2. Except for Gelson’s, the period is from April 2023 to March 2024. For Gelson’s, the period is from July 2023 to June 2024.

36

Store network
Number of Domestic Retail Stores
FY2022

Number of Overseas Stores
FY2024FY2023

1Q

2Q

3Q

4Q

Discount Store

468

486

485

488

488

501

Don Quijote

237

250

250

253

252

262

MEGA Don Quijote1

140

140

140

140

142

143

(MEGA) Don Quijote UNY

59

63

63

63

62

62

Small Format2

32

33

32

32

32

34

GMS3

136

131

131

131

131

131

Domestic total

604

617

616

619

619

632

Don Quijote
Azumino Interchange(Nagano)Don Quijote Uguisudani（Tokyo）

FY2022

1Q

Jun

2Q

3Q

4Q

North America

65

65

65

66

65

65

California

37

37

37

38

37

37

Hawaii

28

28

28

28

28

28

30

36

38

38

43

45

Singapore

12

15

16

15

16

16

Hong Kong

9

9

10

10

10

10

Thailand

4

6

6

6

8

8

Taiwan

2

2

2

3

5

5

Malaysia

2

3

3

3

3

4

Macau

1

1

1

1

1

2

95

101

103

104

108

110

699

718

719

723

727

742

Asia

Overseas total4

April

FY2024FY2023

Total5

1. Includes NEW MEGA.
2. Includes Picasso, Essence, Kyoyasudo, Domise, Ekidonki, Soradonki, Jonetz Shokunin, and Nagasakiya.
3. Includes Apita/Piago, U-STORE, PiagoPower, and Power Super Piago etc.
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 companies except Gelson’s (ends in June), the number of stores for each quarter is adjusted for the applicable fiscal year.

37

IR Information
IR Inquiries
IR Division, Pan Pacific International Holdings Corporation
Dogenzaka-dori 8F 2-25-12 Dogenzaka, Shibuya-ku, Tokyo 150-0043
TEL: 03-6416-0418 / FAX: 03-6416-0994
e-mail : ir@ppih.co.jp

IR Calendar
Announcement of Q1 earnings for the fiscal year ending June 2025 (scheduled)
Date of announcement: Monday, November 11, 2024
Venue: TBI

Cautionary Statement Regarding Forward-Looking Statements
The purpose of this document is solely to provide information to investors, and does not constitute a solicitation to buy or sell
securities. The forward-looking statements set out in this document are based on targets and forecasts, and do not provide any
commitments or guarantees. 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. This document is presented based on the premise that it will be usedat the discretion and responsibility of the investor, regardless of purpose of use, and Pan Pacific International Holdings Corporation
bears no responsibility in any circumstances.

38

Dogenzaka-dori 8F 2-25-12 Dogenzaka, Shibuya-ku, Tokyo 150-0043
TEL: 03-6416-0418 / FAX: 03-6416-0994 / e-mail: ir@ppih.co.jp
https://ppih.co.jp/