41st Fiscal Year (Ending June 2021)

Results for FY2021
August 17, 2021
Pan Pacific International Holdings Corporation

INDEX
１

Overview of results for the fiscal year ending June 2021

2

Earnings forecast for the fiscal year ending June 2022

3

Strategies and measures for the fiscal year ending June 2022

4

Appendix1Explanatory notes for these materials
1. The monetary values presented in these materials are rounded off to the nearest full unit.
2. The following abbreviations are used in these materials: Pan Pacific International Holdings (7532) as “PPIH,” Don Quijote Co., Ltd. and its
stores as “DQ,” UNY Co., Ltd. as “UNY,” UD Retail Co., Ltd. as “UDR,” Singapore as “SG,” Singapore subsidiary as “PPRM (SG),” Hong Kong as“HK,” Hong Kong subsidiary as “PPRM (HK),” Thailand as “TH,” Taiwan as “TW”, Malaysia as “MY”, Japan Asset Marketing Co., Ltd. (8922) as “JAM,”
and Group as “GP.”3. PPIH applies the “Ordinance on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements,” but there are sectionsin these materials 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. From the fiscal year ending June 2021, the method used for the valuation of inventories has been changed from the retail inventory method
to the moving average method, and figures have been adjusted retroactively for comparison in these materials.
5. The exchange rates used for overseas operations are shown below.

(Unit: Yen)

USD (U.S. dollars)

SGD (Singapore dollars)

THB (Thai baht)

HKD (Hong Kong dollars)

TWD (Taiwan dollars)

MYR (Malaysian ringgit)

P/L

B/S

P/L

B/S

P/L

B/S

P/L

B/S

P/L

B/S

P/L

B/S

Previous
period108.99108.83

79.27

76.31

3.51

3.34

13.94

14.03

−

−

−

−

Current
period105.95110.72

77.76

82.28

3.42

3.54

13.66

14.24

3.81

3.88

26.22

26.68

2

Overview of results
for the fiscal year ending June 2021

3

Earnings summary for the full year

※３

[Period: July 1, 2020 – June 30, 2021](Unit: Millions of yen)*１

12 months to June 2020

12 months to June 2021

Full year forecast*２*３

ActualShare

ActualShare

ChangeYoY

Net sales

1,681,947

100.0%

1,708,635

100.0%

26,688101.6%

Gross profit

481,11628.6%

497,325

29.1%

16,209SG&A

405,692

24.1%

416,018

24.3%

Operating profit

75,424

4.5%

81,306

Recurring profit

74,600

4.4%

Profit attributable toowners of parent

49,927

EPS (Yen)

78.79

ActualShare

100.5%

1,700,000

100.0%

103.4%

99.9%

498,000

29.3%

10,326102.5%

99.5%

418,000

24.6%

4.8%

5,882

107.8%

101.6%

80,0004.7%

81,526

4.8%

6,926

109.3%

103.2%

79,0004.6%

3.0%53,851

3.2%

3,924

107.9%

101.6%

53,000

3.1%

−

84.93

−

6.14

107.8%

101.6%

83.58−

Progress*1. As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current period (FY ending June 2021), figures related toprevious periods have been adjusted retroactively and reflected in these materials.
*2. The forecast was revised upward on February 10, 2021 (OP: 77 to 80 billion yen) from the one published originally on August 12, 2020.
*3. Progress rate shows the rate of progress against the full-year forecast.

4

Summary report of consolidated financial results
・Although near the station stores in domestic discount store business struggled due to Covid-19 pandemic, the suburban※１stores, GMS and overseas business covered the gap.
・As a result, net sales, operating profit and net profit for FY2021 reached their records high.

Domestic Discount Store BusinessStores near stations struggled throughout the year from the negative impact of Covid-19, such as the evaporation of inbound sales andrestrictions on the flow of people. However, MEGA DQ and converted UD Retail stores compensated for the slump and all store sales
increased YoY. Operating profit fell below YoY due to a decline in gross profit from the loss of inbound sales.

GMS Business
Sales at existing stores stayed positive, driven by alternative demand for eating out etc. from Covid-19 pandemic.
Profit increased by achieving higher gross profit margin from lowering the cost by book integration and also by significantly reducing
SG&A expenses YoY from PMI effect and cost control. The GMS reform is showing some results.
11 stores were converted to UD Retail and 11 stores were renovated into New GMS to further strengthen the growth of GMS business.

Overseas BusinessIn Asia, despite the impact of Covid-19 in some areas, the "Japan Brand Specialty Store" has gained popularity and brand recognition.
Direct export of primary products from Japan has increased profitability, and succeeded in turning profitable in FY2021.
8 new stores opened including the first stores in Taiwan and Malaysia.
In North America, sales and operating profit increased due to an increase in alternative demand for eating out during Covid-19
pandemic. In addition, the consolidation of Gelson's further increased the sales.

5Summary of results by business (Domestic discount store business)
Changes in sales for full year

Changes in operating profit for full year

<Million Yen>

<Million Yen>

1,051,199

1,060,000+70,190

1,040,000+8,7141,051,199

22,63922,000+6,922

22,061Other
他

FY 2021
当通期

20,0001,020,000 1,014,832
1,014,832
1,000,000

18,000980,000+23,870(41,301)

16,000960,000(21,368)

940,000(7,906)

14,000(3,738)12,000920,000
900,000
0

+405

前通期
FY 2020

station Suburban
UDR
免税
駅前
郊外
DQDQ
UDR
他
Tax
Free Near
Other(Same store) (Same store) (New store)(New store)(既存) （既存） （新店） （新店）

当通期
FY 2021

10,000
0

FY
2020
前通期

DQ
DQ

UDR
UDR

・Sales of discount stores in total increased YoY from the growth in new stores and converted stores despite slump in near the station stores from theinbound evaporation and declining human traffic.
・Gross profit and operating profit declined due to a decrease in sales at the mainstay Don Quijote. On the other hand, operating profit for UD Retailturned to the black (existing stores sales 102.6% YoY) with the growth of existing stores covering the cost of opening new stores.
* DQ merged with Lilac Co., Ltd. in July 2020. Figures for FY2021 is after the merger.
* As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current FY (ending June 2021), figures related to previous periods have beenadjusted retroactively and reflected in these materials.

6

Reference: Summary of results by company (Don Quijote)
Changes in sales for full year

Changes in operating profit for full year
<Million Yen>

<Million Yen>

704,047

22,000700,000

22,11320,000680,000

18,000+23,870(40,368)

660,000+5,594

666,153

16,00014,000(19,663)

640,000

12,000(7,327)(9,265)(14)

Impact of
売上増減に伴うsales
粗利変動
changes ongross profit

Changes in
総利益率のgross profit
変動
margin+1,373

14,207

Changes in
販管費の
SG&A
変動

FY 2021
当通期

10,000620,000

8,000
600,0000

FY 2020
前通期

Tax Free Near station Suburban
DQ
免税 (Same
駅前
郊外
DQ
store) (Same store) (New store)(既存)（既存） （新店）

Other

他

FY 2021

当通期

6,000
0

FY 2020
前通期* DQ merged with Lilac Co., Ltd. in July 2020. Figures for FY2021 is after the merger.
* As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current FY (ending June 2021), figures related to previous periods havebeen adjusted retroactively and reflected in these materials.

7

Discount store business: near the station stores
Near the station stores struggled throughout the year due to the decline in inbound tourism and restrictions on human flowcaused by the declaration of a state of emergency.
We recognize that the evolution of the DS business itself is indispensable for changes in consumer behavior going forward.
Non tax free sales
(YoY)

110%
100%

Non tax free sales(Compared to 2yrs ago)

90%
80%
70%

Last minutedemand before
the sales tax
increase

60%
50%

Sales including tax free(Compared to 2 yrs ago)

Sales including tax free
(YoY)

Jul
7月

Aug
Jan Feb
Oct 11月
Nov 12月
Dec 1月8月 Sep9月 10月
2月

FY2020State ofemergency
(1st)

Mar
3月

Apr
4月

Jun
May 6月5月

State ofemergency
(2nd)

Jul
7月

Sep 10月
Oct 11月
Dec 1月Jan Feb
Nov 12月
Aug
8月 9月
2月

Mar
3月

Apr May
Jun
4月
5月 6月

Jul
7月

FY2021

Covid-19 affected throughout the year

Factors for struggle

・Full-year sales stood at 73.2% YoY (Non tax-free sales 87.4%)① Inbound evaporation

・Massive impact from inbound evaporation and restrictions
on the flow of people (e.g. in front of the station andnighttime)② Restrictions on human flow
(Decline in population)

・Consumer behavior changes can be seen from the fact therecovery of sales was weaker compared to 2 years ago, evenwhen the state of emergency was liftedState ofemergency(3rd)- In front of the station- Nighttime③ Changes in consumer
behavior

Future outlook

Required action

Recovers after acertain period of timeafter Covid

Prepare for recovery while
suppressing losses by responding tochanges at each individual store

Will not go back(or changes will evenbe accelerated)

Evolution of the entire DS business(responding to changes in new
consumption behavior) is indispensable

8

Discount store business: Suburban stores
Despite capturing alternative demand for eating out and stay-at-home, sales at existing stores were slightly below the previous
year‘s level (98.9% YoY) due to the reactionary drop from the special demand for hygiene products in the previous year.

Stores with fresh foodStores without fresh food・Customer traffic increased catching the alternative demand for eating out
with fresh food as magnet items. By capturing stay-at-home demand, thesales landed at 100.3% YoY covering difficult categories such as luxury
products.

・Struggled with existing store sales 96.2% YoY.

・10 stores were converted to UDR, bringing the total number of stores to
52. UDR is performing well, with existing store sales reaching 102.6% YoY
and achieving operating profit in the black.

▶ Breakdown of sales YoY by product category
Suburban stores withfresh food

Suburban storeswithout fresh food

Suburban stores
total

100.3%

96.2%

98.9%

Home electricalappliances

98.3%

94.2%

95.8%

Miscellaneous
household goods

98.3%

95.0%

96.2%

Food products

102.4%

99.0%

100.9%

95.0%

91.7%

92.9%

100.6%

100.0%

100.2%

Total

Watches and fashion
merchandiseSporting goods andleisure goods

・The food category landed at 99.0% YoY due to the inability to capture
alternative demand for eating out. Overall sales also could not be fully
obtained due to the reactionary decline in special demand for hygiene
products in the previous year, with daily necessities category at 95.0%
YoY.

Results of 100-days plan
Quantitative aspect: Some numerical improvement was shown.
・Sales improved YoY against neighboring stores right after therenovation (loss of 5.0pt in the previous 3 months ⇒ win of 5.1pt
in the next 4 months)
・PB/OEM ratio also increased by 1.7% compared to before therenovation as a result of introducing and strengthening standard
shelves.
Qualitative aspect: "Awareness" by thorough observation
・Through PJ, many points for improvement from the customer's
perspective have been recovered by thorough observation of thesales floor.(i.e. lack of "something new", problems with layouts anddisplay, etc.)9Summary of results by business (GMS business)
Changes in sales for full year

Changes in operating profit for full year

<Million Yen>

<Million Yen>

521,944

30,000520,000

28,156+7,71828,973

Changes in
販管費の
SG&A
変動

FY
2021
当通期

25,000510,000+2,71020,000500,000+3,599490,000+1,880492,661(9,611)
15,000(34,762)
10,000480,000

470,000
0

FY 2020

前通期

Decrease閉店減
due toStoreclosureExisting
既存店
store

New GMSNew GMSFY 2021

当通期

5,0000FY 2020
前通期

Impact of
売上増減に伴うsales
粗利変動onchangesgross profit

Changes in
総利益率のgross profit
変動
margin・Sales declined due to a decrease in the number of stores for the store format conversion. However, sales at existing stores increased, driven byalternative demand for eating out as well as promoting the conversion to New GMS.
・Operating profit increased due to higher gross profit margins resulting from the book integration and lower overhead costs derived from theintegration of head office and headquarters, which offset the impact of lower sales.

* UNY merged with Unifood Co., Ltd. in July 2020 and NEXCOM Inc. in October 2020. The figures for FY 2021 is after the mergers

10

GMS business
GMS reforms brought certain results, with profit growth achieved despite a reduction in the number of stores.
In addition to reforms to strengthen management of individual stores, 11 stores were renovated to New GMS and showing good
performance.

Existing stores continue to perform well with the penetrationof individual store management
Existing store sales were 102.6% YoY, continuing to bestrong with the tailwind from the Covid pandemic.
In this 4Q, even though the previous period was also under the
impact of Covid, the two-year comparison remained high at 103.4%.

Various initiatives to strengthen individual store
management have been successful.
・Cash register and core system replacement will enable pricing at
individual stores.
・Strengthen individual store purchasing through the use of thenegotiation system, focusing on products that can bedifferentiated (i.e., highly profitable or can be attractively priced)
and that are not traditionally handled by UNY. Products
purchase in line with the store's commercial area.
・Reforms of organization and human resources structure tostrengthen the sales force are also underway.

Steady progress in renovations and business format conversion＜ Example of renovation to New GMS ＞

・Piago Power Myokoji store: After the first renovation to Piago Plus,
speedily renovated again to meet customer needs (reopened on
March 19, 2021).

＜ Example of business format conversion ＞

・UDR Utsunomiya store: Renovated as a new experiment with Don
Quijote as a tenant, also performed well and became a new successstory (opened on June 11, 2020 as UNY store, and reopened on July17, 2020 as UDR store).

Myokoji store

Utsunomiya store

July 2020〜June 2021

July 2020〜June 2021

Sales YoY

Sales YoY

141.5%

Renovated stores averageSales

126.3%

123.4%

Before
転換前

Before
転換前

Customer Traffic

119.6%※ 11months,
excluding the renovating month-Organization: Support system that enables concentration onsales / integration of indirect departments with PPIH
departments to improve efficiency.
-Human resources: Abolition of personnel selection, mandatory
retirement system (for the revitalization of the organization)
Before
転換前

After
転換後

*Results of directly managed departments,
excluding concept stores

After
転換後

*Including UDR Store (Utsunomiya)

After
転換後

Before
転換前*Including UDR Store (Utsunomiya)

After
転換後

11

Summary of results by business (Asia business)
Changes in sales for full year
60,000<Million Yen>
+1,181+20,907

50,000+1,447+196

50,139・8 new stores opened, including first stores in Taiwan and Malaysia and 5 newstores in Hong Kong, performing well as “Japan brand specialty stores” and gaining
popularity.
・In addition to sales growth of ¥29.3 billion compared to the previous year, PPIC,
which supports the supply of primary products in Japan also contributed to highprofitability, making significant operating profit increase by ¥3.9 billion.

40,00030,00020,000+5,49520,88410,0000

FY 2020
前通期

Singapore
ｼﾝｶﾞﾎﾟｰﾙ

Hong Kong
香港

Thailandタイ

Taiwan台湾

Malaysia
ﾏﾚｰｼｱ

FY 2021
当通期

Changes in operating profit for full year
<Million Yen>

Asia business achieved profitability for the first timewith sales expansion through aggressive store openings andhigher margin through PPIC

＜ Examples of PPIC Initiatives ＞
・The number of members has increased to nearly 300, including producers andrelated organizations.
・Concluded the prefectural cooperation agreements with 4 prefectures (eachprefecture has a target of 10 billion yen in exports by 2030)
・Expanded the range of products handled and held regional fairs.
・Contribution to profitability by increasing the amount of direct trade.
(Sales increase: 241.8% YoY, profit margin: 3.2pt improvement)

PPIC is a membership organization consisting ofproducers who wish to export their produce to ouroverseas stores. By collaborating with producers, it ispossible to consistently build a value chain fromupstream, secure stable products, improve cost
structure, and offer attractive product configurations
and prices.

+1,423

10,000+9,157

8,000
6,000
4,000

(6,706)-2,000(465)
FY 2020
前通期

Impact ofsales
売上増減に伴うchanges on
粗利変動
gross profit

Changes in
Gross Profit
総利益率のMargin変動

Changes in
SG&A
販管費の
変動

Total no.
of stores

Singapore+18Hong Kong+5

7

Thailand

+0

2

3,409

2,000
0

New store
opening

FY 2021
当通期

Taiwan(New)+1

1

Malaysia(New)

+1

1

Total

+8

19

DON DON DONKI
Island Resort Mall（HK）
Opened on Feb 4, 2021

* Figures for Asia are the simple aggregate for PPRM (SG), PPRM (HK), DONKI Thailand, PPRM(TW)and PPRM(MY). Results are for the period from April 2020 to March 2021.

12

Summary of results by business (North America business)
Changes in sales for full year
<Million Yen>
120,000+20,215

North America Business
119,800

110,000
100,000

94,243+ 1,040+4,30190,00080,00070,00060,0000

・Sales and operating profit grew due to the alternative demand foreating out associated with Covid pandemic, contributing to entire
group’s sales and profits increase.
・In California, the customer base expanded in response to substitutedemand for the Covid pandemic. Also, exports of mask hygiene
products from Japan contributed to sales and gross profit.
・Hawaii was impacted by the decrease in tourism, but sales weremaintained supported by the local supermarket business.
Moreover, OP largely increased from the control of SG&A expenses.

Gelson’s
FY2020
前通期

Hawaii
ハワイ

California
カリフォルニア

Gelson’s
Gelson's

FY2021
当通期

Changes in operating profit for full year
<Million Yen>
8,000

+1,387

8,100

Gelson’s
Gelson's

FY2021
当通期+1,1667,000+2,0196,000

・The consolidation of the Gelson's started from this Q4, and an
integration committee has been established to support thecompany's growth and to study synergies with existing North
American businesses.
・In terms of sales, economic activity resumed after the relaxation of
Covid regulations from June 15. While there is an impact ofincreased opportunities for eating out, self-service products such as
self-serve prepared foods and salad bars are growing.

5,000
4,000

3,527

3,000
2,000
1,000
0

FY2020
前通期

Hawaii
ハワイ

California
カリフォルニア*Figures for North America operation are the simple aggregate for DQ USA, MARUKAI, QSI, and Gelson’s. Results are for the period from April 2020 to March 2021 while Gelson’s is from April to June 2021.
*Goodwill amortization (approx. ¥680million) is not included in above chart “Changes in operating profit” for Gelson’s.

13

Retail operations information for full year
▶Domestic retail(Unit: Millions of yen)

Don Quijote

Nagasakiya

12 months to
Jun 2020

12 months to
Jun 2021

YoY

12 months to
Jun 2020

12 months to
Jun 2021

704,047

666,153(37,894)

193,563

192,634

Gross profit

172,136

162,856(9,280)46,909Gross profit ratio

24.4%

24.4%

0.0%

SG&A

150,023

148,650

Operating profit

22,113Operating profit ratio

UD RetailUNY

12 months to
Jun 2020

12 months to
Jun 2021

YoY

12 months to
Jun 2020

12 months to
Jun 2021

YoY

(929)

109,200

184,42175,221

521,944492,661(29,283)

46,798(111)

26,63046,524

19,894

171,300

164,399(6,901)

24.2%

24.3%

0.1%

24.4%

25.2%

0.8%

32.8%

33.4%

0.6%

(1,373)40,92540,518(407)

32,18245,155

12,973

143,143

135,426(7,717)

14,207(7,906)

5,984

6,280

296

(5,553)

1,369

6,922

28,15628,973

817

3.1%

2.1%

-1.0%

3.1%

3.3%

0.2%

-5.1%

0.7%

5.8%

5.4%

5.9%

0.5%

Total assets

290,775

307,931

17,156

88,76989,399630

55,25564,196

8,941

400,644

402,142

1,498

Net assets

147,370

106,719(40,651)

56,682

59,349

2,667

49

813

764

94,582

133,153

38,571

Sales

*１

YoY

▶Overseas retail▶Non-retailNorth America

Asia

*２

12 months to
Jun 2020

12 months to
Jun 2021

YoY

12 months to
Jun 2020

12 months to
Jun 2021

94,243

119,800

25,557

20,88450,139Gross profit

29,327

41,256

11,9296,537

Gross profit ratio

31.1%

34.4%

3.30%

SG&A

25,80033,157

Operating profit

3,527

Operating profit ratio*３

Japan Asset Marketing
12 months to
Jun 2020

12 months to
Jun 2021

29,25522,534

21,738

17,116

10,579

9,199

31.3%

34.1%

2.80%

7,357

7,001

13,707

8,100

4,573

(465)

3.7%

6.8%

3.10%

Total assets

35,57680,619Net assets

25,931

18,557

Sales

*１

UCS
12 months to
Jun 2020

12 months to
Jun 2021(796)

19,94318,658(1,285)

8,222

(977)

19,94318,658(1,285)

40.8%

37.8%

-3.00%

100.0%

100.0%

0.00%

6,706

771

671

(100)

18,29016,988(1,302)

3,409

3,874

8,428

7,551

(877)

1,653

1,671

18

-2.2%

6.8%

9.00%

37.4%

34.7%

-2.70%

8.3%

9.0%

0.70%

45,04329,67338,403

8,730

167,557

162,941(4,616)173,331

166,982(6,349)(7,374)

5,728

12,496

6,768

110,599

116,156

5,557

9,411

10,536

1,125

YoY

YoY

YoY

*1. As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current period, figures related to previous periods have been adjusted
retroactively and reflected in these materials.
*2. Figures for North America are the simple aggregate for DQ USA, MARUKAI, QSI, and Gelson’s. Results are for the period from April 2020 to March 2021 while Gelson’s is from April to June 2021.
*3. Figures for Asia are the simple aggregate for PPRM (SG), PPRM (HK), DONKI Thailand, PPRM(TW), and PPRM(MY). Results are for the period from April 2020 to March 2021.

14

Segment information by business for full year*1
▶ Segment overview by business for FY2020 [Period: July 1, 2019 – June 30, 2020] *2

Discount store

GMS

Tenant leasing

Other

*3

(Unit: Millions of yen)

Total

Adjusted

Consolidated

Sales to externalcustomers

1,117,507

491,621

58,22914,5901,681,947−

1,681,947

Internal sales ortransfers between
segments

5,184

6,721

2,994

6,248

21,147(21,147)−

1,122,691

498,342

61,223

20,838

1,703,094(21,147)

1,681,947

46,73816,992

13,579(2,373)74,936488

75,424

Total
Segment profit▶ Segment overview by business for FY2021 [Period: July 1, 2020 – June 30, 2021] *1(Unit: Millions of yen)

*3

Discount store

GMS

Tenant leasing

Other

Total

Adjusted

Consolidated

Sales to externalcustomers

1,183,526

449,989

60,927

14,193

1,708,635−

1,708,635

Internal sales ortransfers between
segments

7,026

8,966

1,190

4,493

21,676(21,676)−

1,190,553

458,955

62,117

18,686

1,730,311(21,676)

1,708,635

55,335

16,59913,362(4,453)80,843464

81,306

Total
Segment profit*1. Reported segments are organized by the format of service provision, and comprises discount store, GMS, and tenant leasing operations.
*2. As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current period (FY ending June 2021),
figures related to previous periods have been adjusted retroactively and reflected in these materials.
*3. ”Other” includes holding company management, credit card business, etc.

15

Overview of full year results by consolidated businesses[ Period: July 1, 2020 – June 30, 2021](Unit: Millions of yen)

12 months to June 2020
Actual12 months to June 2021
Share

ActualShare

YoY

1,117,507

66.4%

1,183,526

69.3%

105.9%

Home electrical appliances

86,114

5.1%

87,881

5.1%

102.1%

Miscellaneous household goods

241,84614.4%

225,448

13.2%

93.2%

Food products

421,15225.0%

464,91027.2%

110.4%

Watches and fashion merchandise

154,4199.2%

144,729

8.5%

93.7%

59,404

3.5%

61,765

3.6%

104.0%

DIY goods

8,611

0.5%

−

−

−

Overseas

114,5146.8%

170,170

10.0%

148.6%

Other

31,447

1.9%

28,622

1.7%

91.0%

491,62129.2%

449,989

26.3%

91.5%

Clothing

61,863

3.7%

54,710

3.2%

88.4%

Household goods

75,698

4.5%

68,384

4.0%

90.3%

Food products

340,595

20.3%

321,514

18.8%

94.4%

Other

13,465

0.8%

5,380

0.3%

40.0%

Discount store operations*１

Sporting goods and leisure goods

GMS

*１

Tenant leasing operations*１

58,2293.5%

60,927

3.6%

104.6%

Other business operations*２

14,5900.9%

14,193

0.8%

97.3%

1,681,947

100.0%

1,708,635

100.0%

101.6%

Total*1. Reported segments are organized by the format of service provision, and comprises discount store, GMS and tenant leasing operations.
*2. ”Other” includes holding company management, credit card business, etc.

16

Status of major assets, liabilities and net assets(Unit: Millions of yen)

(Unit: Millions of yen)

June 2020
Actual*1June 2021
ActualJune 2020
ChangeActual*1June 2021
ActualChange494,138

495,496

1,358

Total Current Liabilities

312,227

353,550

41,323

Cash and deposits

179,785

157,522(22,263)

Accounts Payable-Trade148,226

149,984

1,758

Account receivableinstallment

68,29365,491(2,802)

Short-Term Liabilities

25,11757,67932,562

Products

187,775

203,416

15,641

Total Noncurrent
Liabilities

596,005

577,937(18,068)

803,093874,756

71,663

Corporate Bonds

226,542

203,976(22,566)

264,035

261,481(2,554)Long-Term Borrowings

276,191

271,507(4,684)Long-Term Payables Under
Fluidity Lease Receivables

191

−

(191)

Total Liabilities

908,232

931,487

23,255Net Assets

388,999

438,765

49,766

1,297,231

1,370,252

73,021

Current Assets

Non-Current Assets
Buildings, etc.

※2

Land

325,499

317,402(8,097)

Intangible assets

36,88379,55942,676

Lease andguarantee deposits

78,62473,882(4,742)

1,297,231

1,370,252

73,021

Total Assets*2

Liabilities and Net
AssetsStatus of major assets, liabilities and net assets＜Status of major asset＞
・Non current asset＜Status of major liabilities＞▶ Interest-bearing debt; 533.2 billion yen (up 5.3 billion yen)

＜Other＞▶ Net D/E ratio: 0.9x
▶ Interest coverage ratio: 14.0 times *3▶ ROE： 13.6%▶ Tangible fixed assets: 643.8 billion yen
・Non-current Liabilities(up 21.1 billion yen)
▶ Long-term liabilities: 475.5 billion yen (down 27.3 billion yen)・Investment related to store openings, etc. ▶ Shareholders‘ equity: 418.7 billion yen＜Acquisition of GRCY Holdings,Inc. ＞ *4
: 40.4 billion yen(Capital adequacy ratio: 30.6%)
Amount of goodwill incurred: 40.9 billion yen
・Depreciation and amortization▶ Current liabilities: 22.8 bil yen▶ Current asset: 8.4 bil yen: 27.6 billion yen▶ Non current asset: 29.4 bil yen ▶ Non current liabilities: 27.6 bil yen▶ Total liabilities: 50.4 bil yen▶ Total asset: 37.8 bil yen*1. As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current period (FY ending June 2021), figures related to previous
periods have been adjusted retroactively and reflected in these materials.
*2. Short-term liabilities = Short-term loans payable + Current portion of long-term loans payable + Current portion of bonds*3. Interest coverage ratio = Cash flows from operating activities / Interest due*4. The amount was calculated provisionally since the acquisition cost is undecided and its allocation has not been completed.

17

Status of cash flows and capital expenditure▶ Cash Flow Status(Unit: Millions of yen)

12 months toJune 2020
Actual12 months to June 2021
ActualChange*1

185,136

183,602(1,534)

Cash Flows from Operating
Activities

65,13579,054

13,919Cash Flows from Investing
activities(33,452)(78,042)(44,590)

31,683

1,012(30,671)(34,030)(28,954)

5,076

Cash Flows from Financing
Activities

Operating Cash Flows▶ Positive items: 64.3 billion yen in income before income taxes andBalance at Beginning of
PeriodFree Cash Flow

Cash Flow

Change During the Period(1,534)(22,727)(21,193)

Balance at End of Period

183,602160,875(22,727)

others, 31.5 billion yen in depreciation and amortization, anddecrease of 2.7 billion yen in notes and accounts receivableinstallment▶ Negative items: Increase of 1.3 billion yen in notes and accounts
receivable-trade, decrease of 2.4 billion yen in trade payables,
increase of 11.3 billion yen in inventory assets and 19.6 billion yen
in income taxes paid, resulting in 79.1 billion yen of cash inflow.

Investment Cash Flows▶ Cash outflow of 78 billion yen was mainly due to 40.4 billion yen for
tangible fixed assets acquisition associated with store openings,
4.5 billion yen for intangible assets acquisition, etc.

Financing Activity Cash Flows▶ Cash outflow of 29 billion yen was mainly due to decrease of 4

billion yen decrease for net amount of short-term and long-termborrowings, 11.9 billion yen for redemption of bonds, 4.5 billion
yen for payables under fluidity lease receivables repayments and9.5 billion yen for cash dividend payments.

*1. As the method for the valuation of inventories has been changed from the retail inventory method to themoving average method since the current period (FY ending June 2021), figures related to previous periods
have been adjusted retroactively and reflected in these materials.
*2. Free Cash Flow = CF from operating activities + CF from investing activities.

Capital Expenditure▶ Status of capital expenditures
Capital Expenditures

38,45545,976

7,521▶ Capital expenditure: 46 billion yen(DQ: 7.6 billion yen, Nagasakiya: 2.2 billion yen, UDR: 6.1 billion yen.
UNY: 8.4 billion yen, JAM: 1.4 billion yen, PPIH: 8.7 billion yen, etc.)18Earnings forecast
for the fiscal year ending June 2022
・Earnings forecast
・Preconditions for the forecast

19Full year forecast of consolidated results(Unit: Millions of yen)

FY2022 1H forecast
ActualShare

FY2022 full year forecast
YoY

Actual

Share

YoY

Sales

929,000

100.0%

108.9%

1,870,000

100.0%

109.4%

Gross profit

275,800

29.7%

109.8%

553,900

29.6%

111.4%

SG&A

231,300

24.9%

114.6%

468,900

25.1%

112.7%

Operating profit

44,500

4.8%

90.2%

85,0004.5%

104.5%

Recurring profit

43,700

4.7%

90.7%

83,0004.4%

101.8%

Profit attributable toowners of parent

30,300

3.3%

92.8%

57,6003.1%

107.0%EPS (Yen)

47.78

-

92.8%

90.82

-

107.0%

Dividends per share (Yen)

3.00

-

100.0%

16.50-

103.1%

CAPEX

33,0003.6%

158.7%

75,0004.0%

163.1%

Depreciation

14,4001.6%

113.5%

30,8001.6%

116.3%

20

Preconditions for the forecast
Sales

Operating Profit(Millions of yen)

(Millions of yen)

1,900,000+97,000(7,397)1,850,000
1,800,000
1,750,000
1,700,000

1,870,000

86,00084,000+71,76282,000(582)

85,00081,30678,00076,0001,600,000

74,0001,550,000

72,000

FY2021
前通期+959

80,0001,708,635

1,650,000

1,500,000
0+3,317

Domestic
国内事業

Overseas
海外事業

Other
他

Forecast
業績予想

70,0000

FY2021
前通期＜Preconditions for the forecast＞
・Inbound sales are not included in the earnings forecast.
・Domestic business
DS: Existing store sales (excluding inbound) recovered to the level before Covid.
GMS: In addition to the 2.1% increase in existing GMS store growth, we arestrengthening renovations to New GMS and tenant-in type renovations of UDR(capital investment increased from 8.4 billion in the previous FY to approx. 14 billion
in the current FY).
・Overseas businessIn Asia, 12 or more stores will be opened, including new stores in Macau.
Existing stores are expecting to decreased by 1.8% due to large store openings
last year and the reactionary impact of special demand for Covid.
North America will refurbish to differentiate itself from its competitors.
・We plan to make capital investment of approx. 75 billion yen in FY2022 (46billion yen in FY2021).

Domestic
国内事業

Overseas
海外事業

Other
他

Forecast
業績予想

New
StoresRefurbish

Sales(ExistingStores)CapitalExpenditureDS

25 or more

30 or more

+3.1%

18 bil yen

GMS-

11 or more

+2.1％

14 bil yen

Overseas(Asia)

12 or more

3 or more-1.8％

11 bil yen

Overseas(N.A)-

10 or more

+3.6％

10 bil yen

Others Capital Expenditure：22 bil yen
Total Capital Expenditure：75 bil yen
・Exchange Rate
1USD＝106.13 yen, 1SGD＝78.80 yen, 1THB＝3.44 yen,
1HKD＝13.68 yen, 1TWD＝3.72 yen, 1MOP＝13.29 yen,
1MYR=25.71 yen

21Strategies and Measures
for the fiscal year ending in June 2022
・Discount store business
・GMS business・Overseas business・Digital strategy
・ESG
22

Domestic discount store businessIn light of changes in the external environment, we will create new value for the discount store business anddifferentiate ourselves.
Changes inthe external environment

What to do for the discount store businessChange in consumer behavior

Deepen and strengthen categories that can become No.1

・Increase in time spent at home
・Decrease in the number of ppl
active, in the range of activities,
and in activities during late night.
・Significant increase in timespent online.

・Narrowing down the SKUs from the conventional general assortment, anddigging deeper into categories that will motivate customers to visit theIssues that we face・Time spent in real stores andon treasure hunting has shifted
online.
・Intensified competitions interms of products and prices
where the demand is limited.
・Required to provide moreeasily understandable value,
product differentiation, andprice advantage.

store and in which we can demonstrate our strength.
・Repeat hypothesis-verification cycle for multiple products/categories in order tocreate stores with such products/categories.
i.e.: “Meat Donki," a sales floor package specializing in meat products.

Promote differentiation by introducing and strengthening PB
development
・Substitute for NB: Introduce and strengthen existing PB and accelerate
development of new products. Create incentives for customers to visit the store andimprove profit margins while differentiating from NB.
・Unique original products: Continue to develop for differentiation.

Improveproductivity
To achieve these
items, we will create
3 million working
hours by the end of
FY2022 throughsystem investment.
(0.8 million hours
already created in
FY2021)

Strengthen price competition against competitors
・Introduced a system that provides recommended prices based on thecompetitors’ prices in the area.
・For some products, the system prevents unnecessary discount sales andcontributes to profits.

23

PB/OEM strategies
The ratio of PB/OEM sales to total sales has improved since the 2nd half of FY2021. In FY2022, we expect to achievesales of 250 billion yen (+27% YoY) by strengthening sales of existing products and expanding the product lineup
through new development.
Initiatives from FY2021

Strategy for the FY2022

・Full rebranding of the PB "Jonetsu Kakaku" in February 2021
-Complete rebranding of the image-Strengthen the product development to incorporate customer
feedback-Introduce new products

・In addition to in-store sales promotion and product revamp, we will also implement
measures to improve brand value and achieve a sales increase of more than 20%.
・Based on the results of the 100-day project, we will accelerate the development of
product categories that are in short supply.
-In domestic DS, we expect to achieve sales of approximately 30 billion yen fromnewly developing regular items.
-Mainly strengthen food products, daily consumables, home appliances, andapparel・Revamp of regular items and development of differentiated products-“Jonetsu Kakaku” mixed nuts: 1.7 times increase in sales after revamping-Fade-resistant skinny pants (a differentiated product): 63,000 items sold・In addition to strengthening sales on a store-by-store basis, we have started rollingout the result of 100-day PJ to regular items’ shelves and have already achieved acertain increase in the ratio of PB.
・On the other hand, it became clear that the product lineup needs to be expanded inorder to further increase sales.

▶ Domestic Discount Store Business PB/OEM Sales composition ratio▶ PB/OEM Sales composition ratio

Composition Ratio(%)

Sales(billion yen)

2,500
250

250 bil

Sales (Left Axle)
Sales Composition(Right Axle)
Domestic

13.0%

2,000
200

overseas

179.9 bil

1,500
150
Roll out “100 day PJ” result(Implement toRebranding ofofregular items’ shelves)
Rebranding“Jonetsu Kakaku”
Kakaku”“Jonetsu

11.0%

7月
Jul

8月
Aug

FY2021

9月
Sep

10月
Oct

11月
Nov

12月
Dec

1月
Jan

2月
Feb

3月
Mar

4月
Apr

5月
May

6月
Jun

7月
Jul

136.6 bil

13.4%

14.1%

12.2%
1,000
100
5000

17
15
13

10.9%

FY201919年6月期

21
19

196.2 bil
*

12.0%

10.0%

・For FY2022, we conservatively forecast net sales of 250 billion yen. (Revised fromthe initial target of 300 billion yen, but up 27% from the previous FY)-For example, gross profit improvement is expected to be about 0.4% for domestic DS.
-Further increase sales through the development of differentiated products.
We aim to achieve a PB ratio of approximately 17.5% in domestic DS.

11
FY202020年6月期

FY2021
21年6月期

FY2022
22年6月期*From FY 2022, the composition ratio includes overseas retail924

GMS Business
Following the success of the GMS reform, the renovation to New GMS is accelerating. We aim to achieve the initial
target, “Operation profit increase by 20 billion yen for UNY+UDR" (compared to 2019) with an evolved form such as
UDR’s tenant-in style.
Accelerate renovation to New GMS

Further improvement of GMS business8 stores will be converted into UDR (5 is tenant-in style), while 11 stores will berenovated into New GMS. As a result, the number of stores expected to be converted in
UDR by the end of FY2024 is expected to be about 60 stores, down from about 80
stores as previously expected.

Further strengthening of individual store pricing
To further promote individual store pricing, we will start full-scale operation of "pricecheckers" for price-sensitive products. In addition to increasing the competitive
advantage in the local trade area, it will achieve optimal pricing to earn profits.

Development of sales floor packages with specialization

With this evolved form, we aim the target of“Operation profit increase by 20 billion yen for UNY+UDR"

Sales floor packages with enhanced specialization as to demonstrate “Partiality andfocus" on the product lineup is under development.
Such packages will be implemented not only in New GMS but also in existing stores.
(e.g., home appliances, outdoor products, clothing, and pet goods)▶ Number of stores undergoing format transformation/renovation ▶ Mid-term plan for UNY&UDR
80

Operating Profit
60 0（Mil Yen）

UDR Conversion
UDR業態転換+7

NewGMS

60

+1

+11

40 0

+31

40

UNY＋ UDR
actualAbout +11
20

+6
0

18/6期
FY2018UNY ＋UDR
plan

Size of the circle：Sales
Centre of the circle: Operating Profit (Left axis)

Operating
Profit 20
billion yen
increase

20 0

+11

+4
+1
19/6期
FY201920/6期
FY2020

21/6期
FY2021

22/6期
FY2022

23/6期
FY2023

24/6期
FY20240

FY2019Feb

FY2019FY2020

FY2021

FY2022

FY2023

FY202425

Overseas business
Scheduled to open 12 new stores, Asia business and will continue to expand proactively.
PPIC, which supports the business model, will strengthen its efforts by expanding its product supply not only to Asia
but also to North America.
Asia

North America

・ In FY2022, we will open a new store in Macau.
Also, we will continue to proactively open new stores in countries/areas where
we have already opened stores, including 4 new stores in Singapore, etc.

＜ Existing Business ＞

・ Start initiatives to further promote "Japanese food" in local markets.
Singapore, Hong Kong: Focus on Japanese rice, introduce Onigiri PJ
Thailand: Roll out high-grade fresh bread
Number of storesas of FY 2021

Store opening plansfor FY 2022

19

+12

Singapore

8+4Thailand2+2

Hong Kong

7+2

Taiwan1+1

Malaysia

1

+2

Macau

0

+1

Asia total

・ In Hawaii, we are working to recover from the decline in number of tourists due to
Covid, and are also aiming to increase sales and profits through renovations andstrengthening of food products.
・ In California, through proactive renovations (5 stores), we will further increase sales
that have grown during the Covid pandemic. We will also promote the introductionof Japanese products as well as increasing in PB/OEM.

＜ Gelson’s ＞

・ With the resumption of economic activities, the alternative demand for eating out that was
enjoyed during the Covid pandemic will be lost.
However, we aim to maintain the customer base we acquired during this period and achievesales that exceed those before the Covid.
・ On the other hand, inventory control and other measures will be thoroughly implemented as
Covid is expanding again.
・Plan to renovate 2 stores in FY2022, and open 2 new stores in FY2023.

PPIC
・Support overseas business development and profitability improvement while continuing
to expand the scale of procurement.
・In FY2022, we plan to supply products not only to Asia
but also to North America.

26

Digital data strategy shifting to implementation phase
Based on the knowledge accumulated from previous pilot initiatives, the "Marshmallow project" launched in 2019, thefuture digital and data strategy will accelerate to increase the contribution to the business by establishing andreorganizing specialized organizations.

From the hypothesis verification to implementation
Until now
Marshmallow project

From now on
Establishment andReorganization

Focus Area

Content

Customer understanding

Strengthen the capabilities of data
analysis to enable further customer
understanding

Customer contact

Expansion of channels with customers,
including enhanced app functionality

Customer experience

Design/implementation of purchaseexperiences tailored to customer
preferences

Experiments for future

PoC/External collaboration

Digital &Data Management HQ.

Various pilot initiatives

27

Digital Data Strategies 1 Overview
As a means of realizing “the customer matters the most” which is responsive to the times, we will underpin thetransformation of our overall business by providing a personalized purchasing experience through implementing thefollowings: Customer understanding based on more thorough analysis of data, building a centralized data utilization
infrastructure, and expanding channels with customers.

Improving customer
point of contact

Improving customer
understanding

Improving customer experience

Provide seamless channel

Data integration for
multifaceted analysis

Provide optimal services
for each customer

Offline Channel

GMS Business
Overseas Business

Customer

App

MA

BI/Analytics

Data Integration
Infrastructure
Data Lake

Optimization of advertising andother sales promotion

Improve channels/content provided

Inventory/order management forecasting

PB / CS…

Online Channel

Payment & Financial Services

DS Business

MA/CRM Scenario design and execution

28

Digital Data Strategies 2 Providing seamless channel
By providing seamless contact with customers, we improve not only the value (convenience) we offer, butalso use it to continuously improve our business as it is the great opportunity to learn about our customers.

DS Business GMS Business Overseas Business

Customer’s information

Service
Customer

Customer contact(OMO)
Online (App. / Social)＆

These points of contact play an importantrole in both usability and data collectionthat leads to customer understanding.

Offline (Store)

Data

Insight
Customer DB

By realizing centralized management ofcustomer information focused on
utilization for business improvement, we
will build a cycle to improve the efficiencyof data analysis and maximize insights.

29

Digital Data Strategies 3 Strengthen the function of majica app
To strengthen digital point of contact, which is also powerful business driver for meeting customer needs,
the app function will be enhanced. Improve point of contact itself so that daily shopping can be convenient.
▶ 5 services that New majica app will realize▶Development Roadmap
Phase forenhancement offunctions

Know

Phase forenhancement ofservices

Provide sales promotion& various information

Media function(A place of a community)(Coupons, news)NEWmajica app

Connect

Phase forpersonalization offunctionsPayment function

Find

Life Platform

Product search(Payments can now be made insideand outside of stores. )(Search product inside andoutside the stores.)

Pay

Personalize

Buy

Product purchase

Enhancement ofprovided functions(Purchase inside and outside the store.)
Time line

30

Digital Data Strategies 4 Redefinition of the platform
In conjunction with PPIH‘s overall digital data strategy, it will serve as a platform to explore the “future of retail”.
The goal is to co-create new value by multiply various ideas and technologies with external collaborators*.

Shopping Platform
Collaboration to resolve business issues
Experiments and proposals to strengthen businessA platform for co-creating the future of retail with external collaborators*.
Three focus areas
Solving business problems /creating new businesses

Marketing / merchandise
development(Solution, service development...)(Redefine of business and branding...)(Strengthen digital/data human capital...)・Digital marketing
・ PB development …

・Participation in the science community・Collaboration with universities ＆research institutions

・Experiments in digital applications
・Experiments in the use of data ...

Improve
corporate value / presence* Collaborators are partners and colleagues who create the future together.

31

ESG initiatives
PPIH further strengthens its ESG initiatives by newly establishing "Sustainability Committee" as of July 1, 2021 to reinforce
environmental and SCM activities, in addition to the Diversity Management Committee and Nomination/Compensation
Committee which were established in FY2021.
▶ ESG organizational structure [Overview]

Newly established committee in FY2022

CEO/board of directors

Sustainability Committee

CFO▶ ESG promotion
sectionInformation disclosure/ Survey response

ESG research institutes/ Investors▶ Sustainability Committee (Newly established)

Environmental measures

Environment

Society▶ Diversity Management Committee▶ Human Resources Headquarters (Work style reform)

・Set quantitative goals for promoting women‘s participation andadvancement in the workplace
Improvement of the ratio of female managers (30% by March 2023).
Eliminate the difference in average years of service between men
and women by the end of FY2025
・Promotion of women's advancement, implementation of in-housetraining on LGBTQ

Nomination/Compensation Committee▶ Compliance Committee▶Risk Management Headquarters

Newly established committee in FY2021

Diversity Management Committee

Supply chain management▶ Nomination/Compensation Committee

・ Established to work more company-wide on environmental
measures (E) and supply chain management (E/S), which werepreviously individually addressed by each department.
・Examples of important issues to be discussed:-Environmental issues: Reduction of CO2 emissions, waste, etc.
-Supply chain management: Formulation of basic procurement
policy, supplier code of conduct, etc.

Governance・Focus on formulating decision-making processes and policies tostrengthen fairness, objectivity, and transparency regarding thenomination, compensation of directors, etc.

32Appendix

33

Earnings summary for Q4[Period: April 1 – June 30, 2021](Unit: Millions of yen)*１

3 months to June 2020

3 months to June 2021

ActualShare

ActualSales

416,188

100.0%

440,440

100.0%

24,252105.8%

Gross profit

117,47728.2%

127,381

28.9%

9,904

108.4%

SG&A

101,468

24.4%

112,96225.6%

11,494111.3%

Operating profit

16,0083.8%

14,4183.3%(1,590)90.1%

Recurring profit

15,686

3.8%

13,9803.2%(1,706)

89.1%

Profit attributable to ownersof parent

12,216

2.9%

8,616

2.0%

(3,600)

70.5%

Share

ChangeYoY*1. As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current period, figures related to previous periods have beenadjusted retroactively and reflected in these materials.

34

Consolidated financial results for Q4 (Year-on-year changes by retailer)[Period: April 1 – June 30, 2021]
Net Sales Changes

Operating Profit Changes<Million Yen>

<Million Yen>
+20,215440,000(2,187)(2,258)430,000
420,000

416,118
416,188

410,000

440,440+1,387+4,588(2,997)

16,00815,000+6,658(198)

16,000(1,089)14,000(1,757)

(890)
(891)

(857)

(64)

(77)

NA
長崎屋

UNY
UNY
UDR
UDR

Overseas
Gelson’s
海外
Gelson's

14,41813,000400,000
12,000390,000

11,000380,000

00
370,0000

10,0000

Previous
前4Q
Q4

DQ
DQ
(with
tax
(免税)
free)

DQ
DQ
(Non tax
(非免税)
tree)

長崎屋
NA

UNY
UNY
UDR
UDR

Overseas
海外

Gelson’s
Gelson's

Other
他

Current
当4Q
Q4

Previous
前4Q
Q4

DQDQ

Other Current
他
当4Q
Q4

- The figures for net sales and operating profit are simple totals for each company. Differences with consolidated results are adjusted using "Other".
- DQ merged with Lilac Co., Ltd. in July 2020. The figures above are after the merger.
- UNY merged with Unifood Co., Ltd. in July 2020 and NEXCOM Inc. in October 2020. The figures above are after the mergers.
- Overseas is a simple total of DQ USA, MARUKAI, QSI, Gelson’s, PPRM (SG), PPRM (HK), DONKI Thailand, PPRM(TW) and PPRM(MY).
Overseas results are cumulative totals for the period from January to March 2021, while Gelson’s is from April to June 2021.

35

Q4 retail operations information[Period: April 1 – June 30, 2021]▶Domestic retail(Unit: Millions of yen)

Don Quijote

Nagasakiya

3 months to
Jun 2020

3 months to
Jun 2021

YoY

3 months to
Jun 2020

3 months to
Jun 2021

169,181

165,986

98.1%

49,50347,745Gross profit

40,01639,25798.1%

11,893Gross profit ratio

23.7%

23.7%

0.0%

SG&A

37,67938,009Operating profit

2,337

Operating profit
ratio

1.4%

Sals

*１

UD Retail3 months to
Jun 2020

3 months to
Jun 2021

96.4%

38,031

11,368

95.6%

24.0%

23.8%

100.9%

9,931

1,248

53.4%

0.8%

-0.6%

YoY

3 months to
Jun 2020

3 months to
Jun 2021

48,707128.1%

124,292

118,204

95.1%

9,428

11,844125.6%

41,381

38,696

93.5%

-0.2%

24.8%

24.3%

-0.5%

33.3%

32.7%

-0.6%

10,263103.3%

10,564

11,834112.0%

34,65633,181

95.7%

1,962

1,105

56.3%

(1,136)

10

-0.9%

6,724

5,514

82.0%

4.0%

2.3%

-1.6%

-3.0%

0.0%

3.0%

5.4%

4.7%

-0.7%

YoY

▶ Overseas retail
3 months to
Jun 2021*２

3 months to
Jun 2021

24,95344,291

177.5%

7,963

15,499Gross profit

7,734

17,113221.3%

2,674

Gross profit ratio

31.0%

38.6%

7.6%

SG&A

6,436

14,250Operating profit

1,298

Operating profit
ratio

5.2%

*１

*３

Asia
3 months to
Jun 2020

Sales

YoY

▶ Non- retailNorth America
3 months to
Jun 2020UNY

3 months to
Jun 2020

3 months to
Jun 2021

194.6%

5,533

5,377

5,090

190.4%

2,204

33.6%

32.8%

-0.7%

221.4%

2,458

5,130

2,864

220.6%

215

6.5%

1.3%

2.7%

YoY

UCS

Japan Asset Marketing
3 months to
Jun 2020

3 months to
Jun 2021

(156)

4,584

4,647

63

1,930

(274)

4,584

4,647

63

39.8%

35.9%

-3.9%

100.0%

100.0%

0.0%

208.7%

213

167

(46)

4,564

3,956

-608

(40)

-18.6%

1,991

1,763

(228)

20

692

672

-0.3%

-3.0%

36.0%

32.8%

-3.2%

0.4%

14.9%

14.5%

YoY

YoY

YoY

* 1. As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current period, figures related to previous periods have been adjusted
retroactively and reflected in these materials.
* 2. Figures for North America are the simple aggregate for DQ USA, MARUKAI, QSI and Gelson’s. Results are for the period from January to March 2021, while Gelson’s is from April to June 2021.
* 3. Figures for Asia are the simple aggregate for PPRM (SG), PPRM (HK), DONKI Thailand, PPRM(TW) and PPRM(MY). Results are for the period from January to March 2021.

36

Q4 overview of results by consolidated businesses[Period: April 1 – June 30, 2021](Unit: Millions of yen)

3 months to June 2020
Actual3 months to June 2021
Share

Actual

Share

YoY

285,82268.7%

314,85671.5%

110.2%

Home electrical appliances

21,906

5.3%

19,976

4.5%

91.2%

Miscellaneous household goods

59,85014.4%

57,341

13.0%

95.8%

Food products

113,12827.2%

120,860

27.4%

106.8%

Watches and fashion merchandise

33,864

8.1%

34,7477.9%

102.6%

Sporting goods and leisure goods

15,6483.8%

15,025

3.4%

96.0%

DIY goods

-

-

-

-

-

Overseas

33,065

7.9%

59,84313.6%

181.0%

Other

8,361

2.0%

7,064

1.6%

84.3%

113,356

27.2%

107,596

24.4%

94.9%

Clothing

13,107

3.1%

14,1243.2%

107.0%

Household goods

17,736

4.3%

13,817

3.1%

77.9%

Food products

82,51319.8%

77,843

17.7%

94.3%

-

-

1,812

0.4%

-

Discount store operations

*１

GMS

Other
Tenant leasing operations*１

13,6993.3%

14,4443.3%

105.4%

Other business operations

*２

3,310

0.8%

3,544

0.8%

107.1%

416,188

100.0%

440,440

100.0%

105.8%

Total*1. Reported segments are organized by the format of service provision, and comprises discount store, GMS and tenant leasing operations.
*2. ”Other” includes holding company management, credit card business, etc.

37Comments on performance overview by consolidated business[Period: April 1 – June 30, 2021]
Discount store businesses: 314.9 billion yen(YoY +10.2%)

Processed foods and alcoholic beverages compensated for the reactionary decline from the previous year's special
demand for hygiene products, stay-at-home, and telework items associated with the Covid pandemic. As in this year,
schools and work have resumed, there were more opportunities to go out, sales of cosmetics, beauty-related
products, school supplies, outdoor goods, and bicycles increased.

▶ Home electronic appliances: 20 billion yen

Demand for beauty and home appliances improved. In addition, sales of electric kickboards increased with gaining popularity.

▶ Daily necessities: 57.3 billion yen(YoY -4.2%)

Personal care products such as cosmetics, skincare, and hair care increased, despite a reactionary decline from the previous year's
special demand for hygiene products and for stay-at-home items.
Paper products, detergents, and pet care products also continued to be strong.

(YoY +6.8%)

Sales were driven by snacks, candy, and delicacies, which are originally the strongest in this category.
In addition, alcoholic beverages grew as an high alternative demand due to restrictions on serving in restaurants.

(YoY -8.8%)▶ Food products: 120.9 billion yen▶ Timepieces/fashion accessories: 34.7 billion yen

Struggle on demand for high-priced watches and imported luxury products becoming the norm. However, since it was the 2nd yearof the Covid pandemic, the negative impact was narrowed. Apparel improved from 3Q. Color contacts and cigarettes were alsostrong.

▶ Sports/leisure goods: 15 billion yen

Protein and outdoor products are doing well, reflecting the demand for exercise and stress relief from the Covid situation.

(YoY +2.6%)▶ Overseas: 59.8 billion yen(YoY - 4.0%)(YoY +81.0%)

GMS business: 107.6 billion yen(YoY -5.1%)▶ Apparel: 14.1 billion yen▶ Homeware : 13.8 billion yen▶ Food products: 77.8 billion yen(YoY + 7.0%)

In Asia, which is performing well, 1 new store was opened in Taiwan (Jan), 1 in Malaysia (Mar), and 1 in Hong Kong (Feb).
In North America, the net increase in Gelson's sales drove the North American business. However, high demand from the Covid
pandemic in the previous year resulted in a slight YoY decline.

The spread of Covid has not been contained, and a state of emergency was declared for the 3rd time.
Fresh foods, processed foods, daily consumables, and other convenience goods are in firm demand, with steady sales.
Since the clothing struggled in the previous year due to voluntary restraint from going out turned positive, sales of a wide range of
products including formal wear, outerwear, innerwear, and school supplies improved.

(YoY -22.1%)

Sanitary products struggled with the hurdle of high demand in the previous year, but sales of home appliances, interior goods,
bedding, and cleaning products grew.

(YoY - 5.7%)

The spread of Covid has not been contained, and demand for stay-at-home continued.
Fresh foods, alcoholic beverages, and meat products grew in a wide range of areas as alternative demand from restaurants.

Tenant leasing business:14.4 billion yen(YoY +5.4%)

The previous year was affected by less holidays and shortened business hours. There was an increase in the numberof business days and hours which led to an increase in tenant income.

38

Breakdown of SG&A
[Period: April 1 – June 30, 2021](Unit: Millions of yen)*１

3 months to June 2020

Actual3 months to June 2021

Actual

Share

Share

YoY

101,468

24.4%

112,96225.6%

111.3%

Salaries and allowances

36,6318.8%

43,6429.9%

119.1%

Rent

13,394

3.2%

13,5383.1%

101.1%

Commission paid

15,435

3.7%

16,012

3.6%

103.7%

Depreciation

6,706

1.6%

7,468

1.7%

111.4%

Other

29,301

7.0%

32,3027.3%

110.2%

SG&A[Period: April 1, 2020 – June 30, 2021](Unit: Millions of yen)*１

12 months to June 2020

Actual12 months to June 2021

Actual

Share

Share

YoY

405,692

24.1%

416,01824.3%

102.5%

Salaries and allowances

144,791

8.6%

157,3729.2%

108.7%

Rent

53,895

3.2%

53,141

3.1%

98.6%

Commission paid

61,2403.6%

58,844

3.4%

96.1%

Depreciation

24,595

1.5%

26,472

1.5%

107.6%

Other

121,171

7.2%

120,189

7.0%

99.2%

SG&A

*1. As the method for the valuation of inventories has been changed from the retail inventory method to the moving average method since the current period,
figures related to previous periods have been adjusted retroactively and reflected in these materials.

39

Store openings for current period
New store openings for the full year: 13 in Japan, 8 overseas. 11 UDR Conversion, 11 New GMS renovation and 27 stores acquired from M&A.
BusinessformatCorporation

1Q
Jul

2Q

Aug

Sep

Oct

Kawagoe
Higashiguchi(Saitama)

Shibata(Niigata)

Matsuyama
Okaido(Ehime)

Nov

3Q
Dec

Jan

Sevenpark Ario Shinshu Nakano
Kashiwa(Nagano)(Chiba)

Feb

4Q
Mar

Sakae San-chome(Aichi)

DQ

Goshogawara(Aomori)Apr

May

Tookamachi(Niigata)

Okashi Donki ＆Osake Donki(Tokyo)

1Q
Jul

Jun

Aug

Sep

Kita Senjyu
West Exit(Tokyo)Jonetz Shokunin
Kawagoe(Saitama)

Shimokitazawa(Tokyo)Nanao(Ishikawa)

MEGA

Discount

Yamashina(Kyoto)Musashi Urawa(Saitama)

Tomigusuku(Okinawa)

MiyazakiTachibana-dori(Miyazaki)

Kaguyama(Aichi)Kira(Aichi)Kakegawa(Shizuoka)

UDR

DQ APITA
Utsunomiya(Tochigi)

Seikadai(Kyoto)Konan(Aichi)Takamori(Nagano)Tsuruga(Fukui)Isawa(Yamanashi)

1 Apita store

Jyushiyama(Aichi)Aizuwakamatsu(Fukushima)

UNY

GMS

(New GMS)

Iwakura（Aichi）

Overseas*１

Mitake（Gifu）Okaya（Nagano）

Kayaba（Aichi）

Inazawa（Aichi）

Okegawa(Saitama)

Nagakute Minami Hekinan Higashi(Aichi)(Aichi)

Nishishiro(Aichi)Kanazawa-Bay(Ishikawa)Fujinomiya（Shizuoka）

1 Apita store

1 Apita store

1 Piago store

Akaike（Aichi）
Pearl City
(Hong Kong)

100QRC(Hong Kong)
HarbourFront(Singapore)Monterey Place(Hong Kong)

Jonetz Market
Peak Galleria(Hong Kong)

Ximen(Taiwan)Island Resort Mall
(Hong Kong)

Lot10(Malaysia)

Downtown East
(Singapore)

Suntec City
(Singapore)

TMT Plaza(Hong Kong)

27 Gelson’s
stores(USA)*1. As the fiscal year ends in March for overseas corporations except Gelson’s, the number of stores for each quarter is adjusted for the applicable fiscal year

＝ Conversion of business format, NewGMS

40

Store network
No. of stores by format
FY2019FY2020212

MEGA

No. of stores by corporation
FY2021FY2019FY2020

1Q

2Q

3Q

4Q

339

342

346

346

346

44

44

44

44

44

44

UD Retail

16

41

44

48

48

52

52

UNY

176

150

147

143

143

139

0

0

0

1Q

2Q

3Q

4Q

225

225

228

227

226

Don Quijote

322

44

44

44

45

45

45

Nagasakiya

New MEGA

88

91

91

92

93

94

MEGA Don Quijote UNY

16

41

44

48

48

*１

Don Quijote

FY2021*７

APITA/Piago

*２

176

150

147

143

143

139

Lilac

4

4

Picasso

*３

25

26

25

25

25

25

99 Ichiba

73

0

*５

0

0

0

0

73

0

*５

0

0

0

0

Doit

15

0 *６

0

0

0

0

0

0

0

Daishin /Tachibana Dept.
Store

0

*６

1

2

2

2

2

2

651

580

579

583

583

583

Mini Piago

0

Doit

15

0

Nagasakiya etc.

2

3

3

2

2

2

Domestic total

42

49

49

50

54

84

DQUSA

4

4

4

4

4

4

MARUKAI

10

10

10

10

10

10

QSI

24

24

24

24

24

24

-

-

-

-

-

27

PPRM (SG)

3

7

7

7

8

8

PPRM (HK)

-

2

2

3

6

7

DONKI Thailand

1

2

2

2

2

2

PPRM (Taiwan)

-

-

-

-

-

1

PPRM (Malaysia)

-

-

-

-

-

1

42

49

49

50

54

84

693

629

628

633

637

667

Overseas*４

DON DON DONKI

DON DON DONKI

Suntec City (Singapore)

Downtown East (Singapore)Gelsonʼs

AprJun* 1. Business format conversion stores operated by Nagasakiya are all included in “MEGA”.
* 2. “Apita/Piago” includes “U-STORE”, “Power Piago” format.
* 3. “Picasso” includes Picasso, Essence, Kyoyasudo, Ekidonki, Soradonki, and Jonetsu Shokunin.
* 4. As the fiscal year ends in March for overseas corporations except Gelson’s, the number of stores for each quarter isadjusted for the applicable fiscal year.
* 5. 73 stores decreased as of April 1, 2020 due to transfer of shares.
* 6. 15 stores decreased as of February 1, 2020 due to transfer of business.
* 7. 4 stores decreased as of July 1, 2020 due to absorption and merger with Don Quijote.
* 8. Gelson’s fiscal year, unlike other overseas corporations, ends in June.

*８

Overseas total
Total

*４

41

Status of shares
Trends in composition by owner(Thousands of shares)
Number of shareholders at
end of the period(millions of shares)June, 2019

June, 2020

7,728

9,946

※１

June, 2021

15,66416,000600

14,000100.0%

633,929100.0%

634,239100.0%

Financial institutions

37,94724.0%

122,268

19.3%

114,706

18.1%

400

Financial instruments
dealers

3,263

2.1%

10,4101.6%

14,773

2.3%

300

Other corporations

12,276

7.7%

112,71717.8%

118,016

18.6%

200

Foreigners

102,32164.6%

379,59259.9%

376,695

59.4%

100

2,514

1.6%

8,942

1.4%

10,049

1.6%

By owner

Individuals and others(Note) ・ The number of shareholders in June, 2021 was 15,664 (up 5,718 YoY).
・ Foreign shareholding ratio is 59.4%.
・ Treasury stock (18,924 shares) is included in individuals and others.

Shareholding ratio by owner

Number of shareholders (right axis)

500

158,321

Total number of shares issued(People)700

12,00010,0008,000

0Number of shares issued (left axis)

6,000
4,000
2,000

FY2016 ※１ FY2017

FY2018FY2019FY2020 ※１ FY2021

0■ Financial institutions ■ Financial instruments dealers ■ Other corporations ■ Foreigners ■ Individuals and others
100%
22.7%
80%
8.0%

19.0%
7.9%

15.1%
7.8%

17.5%

14.7%

15.9%

7.7%

7.7%

7.7%

24.0%

19.3%

18.1%

7.7%

17.8%

18.6%

59.9%

59.4%

1.4%

1.6%

18.6%

20.6%

7.7%

7.7%

70.0%

68.9%

64.6%

2.6%
2.3%
FY2016 ※１ FY2017

1.8%
FY2018

1.6%
FY201960%

40%* 1: Conducted stock splits on July 1, 2015 (1:2)
and September 1, 2019 (1:4)

51.5%

56.1%

64.6%

62.5%

74.0%

73.0%

20%

0%

17.1%

16.7%

12.0%

11.5%

FY2011FY2012FY2013

FY20142.2%
FY2015

FY2020 ※１FY2021

42

Overview of results for listed subsidiaries▶ Japan Asset Marketing (8922)
Previous Q1

Profit statement

Current Q1

April
April 1~June
1~June 30,
30, 2020
2020

ActualApril
April 1~June
1~June 30,
30, 2021
2021

Actual

Share
Share

Balance sheet

Share
Share

YoY
YoY

5,521

100.0%

97.5%

Non-current assets

154,710

153,783(927)

Total assets

164,112

164,350

238

Current liabilities

9,384

8,635

(749)

88.3%

Non-current
liabilities

41,23841,004

(234)

32.2%

89.0%

Total liabilities

50,622

49,639

(983)

22.1%

89.2%

Total net assets

113,490

114,710

1,220

2,016

36.5%

87.7%

272

4.8%

226

4.1%

83.1%

Operating profit

2,028

35.8%

1,790

32.4%

Recurring profit

2,000

35.3%

1,779

Profit attributableto owners of parent

1,367

24.1%

1,220

Sales and operating profit

Changes in number of properties owned(Millions of yen)

(Millions of yen)
Sales (left axis)

2,400(No. of properties)
130

OP (right axis)

5,500

2,200

120

2,000

5,000

1,800
4,500

4,000

Change

1,165

40.6%

6,000

Actual

10,567

2,300

SG&A

Actual9,402

100.0%

Gross profit

June, 2021

March, 2020

Current assets

5,661

Sales

(Unit: Millions of yen)

(Unit: Millions of yen)

1,600
1Q

2Q 3Q
Mar 2019

4Q

1Q

2Q 3Q
Mar 2020

4Q

1Q

2Q 3Q
Mar 2021

4Q

1,400
1Q
Mar 2022

110
100
90

1Q

2Q
3Q
Mar 2019

4Q

1Q

2Q
3Q
Mar 2020

4Q

1Q

2Q
3Q
Mar 2021

4Q

1Q
Mar 202243

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 Q1 results for the fiscal year ending June 2022 (Scheduled)
Date of announcement: November 10, 2021 (Wednesday)
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. 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. Thesematerials are presented based on the premise that they will be used at discretion and responsibility of the investor, regardless of the purposes thatthey use these materials for, and Pan Pacific International Holdings Corporation bears no responsibility in any circumstances.

44

memo

45

memo

46

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/