Summary Report of Consolidated Financial Results
For the Second Quarter Ended December 31, 2020

(All financial information has been prepared in accordance with accounting principles generally accepted in Japan.)
Pan Pacific International Holdings Corporation
Securities Code No.: 7532
Shares Listed:Tokyo Stock Exchange
Address:
2-19-10 Aobadai, Meguro-ku, Tokyo
Representative:
Naoki Yoshida, President and CEO
Contact:
Seiji Shintani, Director and Senior Managing Executive Officer, CSO and CFO(Phone:+81-3-5725-7588)
URL:
https://ppih.co.jp/(Amounts in million yen are rounded off to the nearest million)
1. Overview of Business Results and Financial Position for the second quarter of fiscal 2021 (From July 1, 2020 toDecember, 31, 2020)(1) Results of Business Operations(Millions of yen, except per-share data)
Profit Attributable
Change Operating Change Ordinary Change
ChangeNet Sales
to Owners of(%)(%)
Income(%)
Income(%)
ParentSix Months Ended
852,861(0.7)
49,32911.3
48,192
7.7
32,63815.1
December 31, 2020
Six Months Ended－－－
858,78967.3
44,30944,751
28,363
December 31, 2019
(Note) Comprehensive income: 33,070 million yen [20.5%] (FY 2021.6 2Q), 27,450 million yen [－%] (FY 2020.6 2Q)
Net Income
Per Share(Yen)Net Income
Per Share-fully
diluted (Yen)Six Months Ended
51.48
51.34
December 31, 2020
Six Months Ended
44.77
44.65
December 31, 2019
(Note) The accounting policy has been changed since the first quarter of the fiscal year ending June 2021, and the figures
for the second quarter of the fiscal year ended June 2020 are the figures after the retroactive adjustment.
The year-on-year percentage change in the second quarter of the fiscal year ended June 2020 is not stated because it
was retroactively revised due to changes in accounting policy.
(2) Financial Position(Millions of yen, except per-share data)
Total Assets

Ratio of Shareholders’ Equity
to Total Assets (%)

Net assets

As of December 31,
1,362,035
415,67829.1
2020
June 30, 2020
1,297,231
388,999
28.7(Reference) Equity: 396,639 million yen (as of December 31, 2020), 371,839 million yen (as of June 30, 2020)(Note) The accounting policy has been changed since the first quarter of the fiscal year ending June 2021, and the figures
for the fiscal year ended June 2020 are the figures after the retroactive adjustment.
2. Dividends
Three Months Endof September 30
Year Ended June 30,
2020
Year Ending June 30,
2021
Year Ending June 30,
2021 (Forecast)

Six Months Endof December 31

－

3.00

－

3.00

YenNine Months Endof March 31

Year Endof June 30

Total

－

12.00

15.00

－

13.00

16.00

(Note) Revision to the dividend forecast in the second quarter of fiscal 2021: None1

3. Consolidated Business Forecast：For the year ending June 30, 2021 (From July 1, 2020 to June 30, 2021)(Millions of yen, except per-share data)
Net SalesChange(%)

Operating
IncomeChange(%)

Ordinary
IncomeChange(%)

ProfitAttributableto Owners ofParentChange(%)

Net IncomeperShare(Yen)Year Ending
1,700,000
1.1
80,000
6.1
79,0005.9
53,000
6.2
83.58
June 30, 2021
(Note) Revision to the business forecast in the first quarter of fiscal 2021: Yes(Note) The year-on-year percentage change for the whole financial year have been revised retroactively due to changes inaccounting policy, so they are shown in comparison with the figures for the previous year after the retroactive
adjustment.
4. Others(1) Significant changes in the scope of consolidation: None
Newly consolidated: － , Excluded:－(2) Simplified accounting methods and special accounting methods for preparation of the quarterly consolidated
financial statements: None
(3) Changes in accounting policies concerning preparation of quarterly consolidated financial statements① Changes in line with revision to accounting standards: None
② Other changes: Yes③ Changes in accounting estimates: None
④ Restatement: None
(4) Number of outstanding shares (Common share)① Number of outstanding shares (Treasury share included)
December 31, 2020
634,105,440 shares
June 30, 2020
633,929,040 shares② Number of treasury share
December 31, 2020
18,924 shares
June 30, 2020
18,924 shares③ Average number of outstanding shares during the period
December 31, 2020
634,012,803 shares
December 31, 2019
633,477,295 shares※This financial summary is not subject to audit conducted by certified public accountants or an audit corporation.
※Explanation regarding the appropriate use of forecasts of business results
The financial forecasts of business results are based on judgments and estimates that have been made using
currently available information. By nature, such financial forecasts are subject to uncertainties and risks. Therefore,
actual results might be significantly different from the aforementioned forecasts for a variety of reasons, includingchanges in economic environments related to our business, market trends and foreign currency exchange rates.
※The Company plans to hold a financial result briefing for security analysts and institutional investors on February 10,2021. Presentation materials for the briefing will be available on the Company’s website.

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

As of December 31,

2020

2020

AmountAmountAssetsCurrent assets
Cash and deposits¥179,785¥206,979

Notes and accounts receivables-trade

18,37827,297

Accounts receivables - installment

68,29374,791

Operating loans

8,076

7,501

187,775

204,477

6,772

7,295

Deposits paid

4,377

16,022

Other

21,572

21,812(890)(1,000)494,138

565,174

264,035

263,169

Merchandise and finished goods
Prepaid expenses

Allowance for doubtful accounts
Total current assets

Non-current assets
Property, plant and equipment
Buildings and structures, netTools, furniture and fixtures, net

29,89829,806

Lands

325,499

323,146

3,278

4,929

622,710621,050

Goodwill

15,93515,080Other

20,94821,808

Total intangible assets

36,88336,88817,515

18,678Long-term loan receivables

1,269

2,029

Long-term prepaid expenses

5,729

5,459

Retirement benefit assets

16,236

16,375

Other, net
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities

Deferred tax assets

23,15020,076

Lease and guarantee deposits

78,62475,246

Other

3,178

3,169

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

Total assets

3(2,201)(2,109)143,500

138,923

803,093

796,861¥1,297,231¥1,362,035

(Millions of yen)
As of June 30,

As of December 31,2020

2020

AmountAmountLiabilities
Current liabilities
Notes and accounts payables - trade¥148,226¥194,923－

1,000

Current portion of long-term loan payables

13,201

18,455Current portion of bonds

11,916

12,636

Payables under securitization of lease receivables

4,512

1,378

Accounts payables – other53,481

53,748

Accrued expenses

22,58818,931

Deposits received

16,806

21,750

Income taxes payables

10,96910,483

Short-term loan payables

Provision for point card certificates

6,924

7,497

Other

23,60423,243

Total current liabilities

312,227

364,046

Bond payables

226,542

224,714Long-term loan payables

276,191

264,517

191－23,300

23,4489450

Non-current liabilities

Long-term payables under securitization of lease receivables

Asset retirement obligations
Negative goodwill
Other69,687

69,582

Total non-current liabilities

596,005

582,311908,232

946,357

23,00823,090Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus

16,977

17,059Retained earnings

332,263357,294

(15)

(15)

372,233

397,429

Valuation difference on available-for-sale securities

529

743

Foreign currency translation adjustment(865)(1,480)Remeasurements of defined benefit plans

(58)

(53)

Total accumulated other comprehensive income(394)(790)

218

217

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income

Share acquisition rights
Non-controlling interests

16,942

18,822

Total net assets

388,999415,678¥1,297,231¥1,362,035

Total liabilities and net assets

4Consolidated Quarterly Statements of Income
Six months ended
December 31, 2019
AmountNet sales(Millions of yen)Six months ended
December 31, 2020
Amount¥858,789¥852,861

611,800

601,667

246,989

251,194

202,680

201,865

44,30949,329Interest and dividend income

320

297

Amortization of negative goodwill4343

Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income

167

148

Other

2,673

2,610

Total non-operating income

3,203

3,098

Share of profit of entities accounted for using equity method

Non-operating expenses
2,543

2,505

Foreign exchange loss

－

1,493

Cost of claim's liquidation

94

38

Interest expenses paid on loans and bonds

124

200

2,761

4,236

44,751

48,192Gain on sales of non-current assets

103

96

Gain on reversal of provision for loss on store closings

268－

Gain on reversal of share acquisition rights

2200Gain on insurance claims

－822

Other

421

75

1,012

993

Impairment loss

1,533

－

Loss on retirement of non-current assets

Other
Total non-operating expenses
Ordinary income
Extraordinary income

Total extraordinary income
Extraordinary losses

2,442

379

Loss on closing of stores

323

214

Loss on disaster

151

9143

47

4,592

649

Profit before income taxes

41,171

48,536

Income taxes - current

10,671

10,805

Other
Total extraordinary losses

Income taxes – deferred

1,868

4,297

Total income taxes

12,53915,102

28,63233,434

269

795¥28,363¥32,638

ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

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

ProfitSix months ended
December 31, 2019

Six months ended
December 31, 2020

AmountAmount¥28,632¥33,434719

204(1,928)

(583)

24

3

3

12(1,182)(364)¥27,450¥33,070¥27,124¥32,243

326

827

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to：
Owners of parent
Non-controlling interests

6Consolidated Quarterly Statements of Cash FlowsSix months ended
December 31, 2019
Amount(Millions of yen)Six months ended
December 31, 2020
AmountCash flows from operating activities:
Profit before income taxes
Depreciation and amortization
Impairment loss
Amortization of negative goodwill
Decrease in provisions
Interest and dividend income
Interest expenses paid on loans and bonds
Share of profit of entities accounted for using equity method
Loss on sales and retirement of property, plant and equipment
Gain on insurance claims
Increase in notes and accounts receivables – trade
Increase in inventories
Increase in notes and accounts payables – trade
Increase in accounts receivables – installment
Increase in accounts payables – other
Increase in deposits received
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refund
Proceeds from insurance benefits
Payments for loss on disasterDividends received from entities accounted for using equity method
Net cash provided by operating activities¥41,171
14,1491,533(43)(4,612)
(320)
2,543
(166)
2,452
－
(6,400)(11,502)28,618(11,866)
5,213
5,033
(22)
65,781110(2,483)(9,222)
4,875
－
(169)
78
58,970¥48,536
14,877－(43)(3,535)
(297)
2,505
(148)
283
(822)
(8,741)(16,865)
46,869(6,525)
4,219
4,947
1,112
86,372134(2,524)
12,711)
1,127
1,286
(49)
－
73,635

Cash flows from investing activities:
Payments for purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for purchase of intangible assets
Purchase of shares of subsidiaries and affiliates
Payments for leasehold and guarantee deposits
Proceeds from collection of leasehold and guarantee deposits
Payments for store opening in progress
Loan advances
Other, net
Net cash used in investing activities(15,310)389(2,043)－(2,368)
876
(500)
(2)
(224)
(19,182)(18,756)
2,519(1,557)
(784)
(858)
3,300
(261)
(801)
46
(17,153)(123)(12,925)(1,708)(3,722)
188(4,750)－(31)(23,071)313
17,030185,136

1,000(6,289)(1,108)(3,353)163(7,607)1,052(23)(16,165)(2,184)
38,133
183,602

1,163－¥203,329¥221,734

Cash flows from financing activities:
Net increase (decrease) in short-term loan payables
Repayments of long-term loan payables
Redemption of bonds
Repayments of payables under securitization of lease receivables
Proceeds from issuance of common shares
Cash dividends paid
Proceeds from share issuance to non-controlling shareholders
Other, net
Net cash used in financing activities
Effect of foreign exchange rate change on cash and cash equivalents
Net increase in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Increase in cash and cash equivalents resulting
from inclusion of subsidiaries in consolidation
Cash and cash equivalents at the end of period7

Segment Information
For the second quarter ended December 31, 2020
1. Information concerning sales and income by reporting segment(Millions of yen)
Reporting segment
DiscountStorebusiness

GMSbusinessRent
Sub Totalbusiness¥579,345 ¥234,539¥31,834 ¥845,719

AdjustmConsolidated
ent(Note 3)(Note 2)Others(Note 1)

Total

¥7,142¥852,861

Sales, Segment income
Sales
Sales to third parties
Intersegment sales
Total
Segment income (loss)¥－¥852,861

3,825

4,207

563

8,595

2,282

10,877 (10,877)－

583,170

238,746

32,398854,3149,425

863,738 (10,877)

852,861¥32,254¥11,317¥7,489¥51,060¥ (1,875)¥49,185¥49,329

¥144

Notes
1. “Others” includes the service related to the operation of the Company (Holdings Company), Credit card service and soon, which does not belong to the Reporting segment.
2. The ¥144 million adjustment to segment income is an intersegment elimination.
3. Segment income is adjusted to the quarterly consolidated operating income.
2. Information concerning changes in reporting segment
The valuation method for inventories (merchandise and finished goods) has changed since the first quarter of the current
consolidated fiscal year. This change has been applied retroactively, and segment income for the second quarter of theprevious fiscal year has decreased by 804 million yen in the “discount store business” compared to the case where theconventional method was used.
3. Information concerning impairment loss of fixed assets or goodwill by reporting segment
Not applicable
For the second quarter ended December 31, 2019
1. Information concerning sales and income by reporting segment(Millions of yen)
Reporting segment
DiscountStorebusiness

Others
GMSRent
Sub Total (Note 1)
business Business

Total

Adjustment Consolidated(Note 2)
(Note 3)

Sales, Segment income
Sales
Sales to third parties
Intersegment sales¥560,953 ¥260,564¥29,705 ¥851,222¥7,567¥858,789¥－¥858,789

2,847

2,179

2,037

7,063

3,373

10,436(10,436)－Total563,800

262,743

31,742858,285

10,940869,225(10,436)

858,789

Segment income¥27,306¥10,005¥6,741¥44,052¥43¥44,095¥214¥44,309

Notes
1. “Others” includes the service related to the operation of the Company (Holdings Company), Credit card service and soon, which does not belong to the Reporting segment.
2. The ¥214 million adjustment to segment income is an intersegment elimination.
3. Segment income is adjusted to the quarterly consolidated operating income.
2. Information concerning impairment loss of fixed assets or goodwill by reporting segment
Impairment losses on store facilities and land were recorded in the Discount Store business segment, Rent businesssegment and corporate assets not allocated to reportable segments. Impairment losses of ¥894 million in the DiscountStore business segment, ¥27 million in the Rent business segment and ¥612 million in the corporate assets not allocatedto reportable segments were recorded for the second quarter ended December 31, 2019.

8