Summary Report of Consolidated Financial Results
For the Second Quarter Ended December 31, 2023

(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, Representative Director
Contact:
Yuji Ishii, Director, Managing Executive Officer and CAO (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 2024 (From July 1, 2023 to December31, 2023)(1) Results of Business Operations(Millions of yen, except per-share data)
ProfitChange Operating
ChangeOrdinary
ChangeAttributable
ChangeNet Sales(%)(%)
Income(%)
Income(%)
to Owners ofParent
Six Months Ended
1,047,594
7.1
75,501
31.4
73,60728.6
48,21431.1
December 31, 2023
Six Months Ended
978,449
6.6
57,45631.6
57,22628.5
36,77722.0
December 31, 2022
(Note) Comprehensive income: 57,996 million yen [20.7%] (FY 2024.6 2Q), 48,059 million yen [61.0%] (FY 2023.6 2Q)

Six Months Ended
December 31, 2023
Six Months Ended
December 31, 2022

Net Income Per Share(Yen)Net Income Per Share-fully diluted (Yen)

80.80

80.55

61.67

61.52

(2) Financial Position
Total Assets

Net assets

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

As of December 31,
1,498,608
512,91133.5
2023
June 30, 2023
1,481,058
463,53930.6(Reference) Equity: 501,675 million yen (as of December 31, 2023), 453,261 million yen (as of June 30, 2023)
2. Dividends

Year Ended June 30,2023
Year Ending June 30,2024
Year Ending June 30,2024 (Forecast)Three Months Endof September 30

Annual Dividends per share
Six Months End ofNine Months End ofDecember 31
March 31

－

4.00

－

5.00

Year Endof June 30

Total

－

16.00

20.00

－

16.00

21.00

(Note) Revision to the dividend forecast in the Second quarter of fiscal 2024: None

3. Consolidated Business Forecast：For the year ending June 30, 2024 (From July 1, 2023 to June 30, 2024)(Millions of yen, except per-share data)
Net Sales

Change(%)

Operating
IncomeChange(%)

Ordinary
IncomeChange(%)

Year Ending
2,070,000
6.9
130,000
23.5
126,000
13.5
June 30, 2024(Note) Revision to the business forecast in the Second quarter of fiscal 2024: Yes

ProfitAttributableto Owners ofParent

Change(%)

Net
Income perShare(Yen)

76,50015.6

128.19For information on the revision to the consolidated business forecast, please refer to the “Notice on the difference between
the consolidated business forecast and the actual results for the first six months of the year ending June 30, 2024 and therevision to the full-year forecast” released today (February 13, 2024).

1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 financialstatements: None
(3) Changes in accounting policies concerning preparation of consolidated financial statements① Changes in line with revision to accounting standards: None
② Other changes: None
③ Changes in accounting estimates: None
④ Restatement: None(4) Number of outstanding shares (Common shares)① Number of outstanding shares (Treasury shares included) December 31, 2023
June 30, 2023
② Number of treasury shares
December 31, 2023
June 30, 2023
③ Average number of outstanding shares during the period
December 31, 2023
December 31, 2022

634,828,940 shares
634,666,240 shares
38,073,252 shares
38,073,224 shares
596,670,859 shares
596,372,007 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, including changes
in economic environments related to our business, market trends and foreign currency exchange rates.
※The Company plans to hold a financial result briefing for security analysts and institutional investors on February 13,2024. Presentation materials for the briefing will be available on the Company’s website.

2Consolidated Quarterly Balance Sheets(Millions of yen)

AssetsCurrent assets

Cash and deposits

As of June 30,

As of December 31,

2023

2023

AmountAmount¥242,088¥186,882

Notes and accounts receivables-trade

13,782

19,911

Accounts receivables - installment

55,35061,613Operating loans

9,047

9,333

Merchandise and finished goods

194,537

206,200

Prepaid expenses

8,629

9,276

Deposits paid

5,357

22,185

Other

25,541

33,714

Allowance for doubtful accounts(2,496)(2,827)

Total current assets

551,836546,287

Buildings and structures, net

287,975

289,854

Tools, furniture and fixtures, net

35,02737,087Land

318,721335,033

Construction in progress

15,532

20,768Right of use assets, net

30,561

29,632Other, net

1,393

1,522

689,209713,897

Goodwill

61,002

59,200Other

27,52829,635

Total intangible assets

88,53088,83534,64334,038Non-current assets

Property, plant and equipment

Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Long-term prepaid expenses

4,370

4,335

Retirement benefit asset

17,806

17,869Deferred tax assets

20,68620,149Lease and guarantee deposits

71,84570,817

Other

3,476

3,813

Allowance for doubtful accounts(1,342)(1,432)

Total investments and other assets

151,484

149,590929,222952,321¥1,481,058¥1,498,608

Total non-current assets

Total assets3

(Millions of yen)

Liabilities
Current liabilities

Notes and accounts payables - trade

As of June 30,

As of December 31,2023

2023

AmountAmount¥168,661¥224,516

Current portion of long-term loan payables

34,36462,238Current portion of bonds

10,93010,650Accounts payables – other49,47552,843

Lease obligations

2,263

2,529

Accrued expenses

26,991

22,101

Deposits received

14,012

22,811

Income taxes payables

23,16922,862

Provision for point card certificates

1,962

2,459

Contract liabilities

20,83816,070Other

15,75615,751

Total current liabilities

368,422454,830

Bond payables

261,625

191,400

Long-term loan payables

272,499

226,127

Lease obligations31,036

29,995

Asset retirement obligations

30,83531,322Other53,10152,024

Total non-current liabilities

649,097

530,867

1,017,519

985,697

Share capital

23,351

23,445

Capital surplus

17,50917,603Retained earnings

483,366

522,034

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

Total shareholders' equity

443,270

482,126

Non-current liabilities

Total liabilities

Net assets

Shareholders' equity

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

1,690

1,438

Foreign currency translation adjustment

7,797

17,657

Remeasurements of defined benefit plans

503

454

9,991

19,549Total accumulated other comprehensive income
Share acquisition rights

771

1,110

Non-controlling interests

9,507

10,126

463,539

512,911¥1,481,058¥1,498,608

Total net assets
Total liabilities and net assets

4Consolidated Quarterly Statements of Income
Six months ended
December 31, 2022
AmountNet sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income(Millions of yen)Six months ended
December 31, 2023
Amount¥978,449¥1,047,594

676,029

716,603

302,420

330,991

244,964

255,489

57,45675,501

489

667

Non-operating income
Interest and dividend income
Share of profit of affiliates accounted for using equity
methodPenalty income
Foreign exchange gains
Other
Total non-operating income

283

367

129
625
2,191
3,717

902
－
2,418
4,354

Non-operating expenses
Interest expenses paid on loans and bonds
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit

3,833
－
114
3,947
57,226

3,822
1,601
825
6,248
73,607

93
22
33

7－
18558490
34
104
1,186
56,073

617
101
8
5
732
72,883

16,844
1,946
18,79037,283505

23,011
1,455
24,466
48,417203¥ 36,777¥48,214Extraordinary income
Gain on sales of non-current assets
Reversal of provision for environmental measures
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on closing of stores
Loss on disaster
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes – deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

5Consolidated Quarterly Statements of Comprehensive Income

ProfitSix months ended
December 31, 2022

(Millions of yen)Six months ended
December 31, 2023

AmountAmount¥37,283¥48,417

187

(710)

10,624

10,293

(20)

(25)

(14)

21

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 affiliates
accounted for using equity method
Total other comprehensive income
Comprehensive income

10,776

9,579¥48,059¥57,996¥47,195¥57,772

864

224

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

6Consolidated Quarterly Statements of Cash Flows

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

7

Six months ended
December 31, 2022
Amount(Millions of yen)Six months ended
December 31, 2023
Amount¥56,073
20,734(1,554)
(489)
3,833
(625)
(283)
550
(5,626)(1,953)56,874(8,404)
4,360
7,464(6,198)
124,756515(3,855)(18,735)
526
(86)
53
103,174¥72,883
22,180
(105)
(667)
3,822
1,601
(367)
610
(6,069)(10,100)
54,541(6,346)
6,142
8,797(15,671)
131,253535(3,931)(29,054)
3,284
(13)
73
102,147(29,114)(4,360)
(754)
327
(293)
(3,386)(7)¥(37,586)(40,137)(3,801)
(342)
1,158
(692)
－16
¥(43,798)Cash flows from financing activities:
Net increase in short-term loan payables
Proceeds from long-term loan payables
Repayments of long-term loan payables
Proceeds from issuance of bonds
Redemption of bonds
Cash dividends paid
Proceeds from share issuance to non-controlling interests
Purchase of shares of subsidiaries not resulting in change in scope ofconsolidation
Other, net
Net cash used in financing activities
Effect of foreign exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of period
Decrease in cash and cash equivalents resulting
from exclusion of subsidiaries in consolidation
Increase in cash and cash equivalents resulting from merger withunconsolidated subsidiaries
Cash and cash equivalents at the end of period

8Six months ended
December 31, 2022Amount(Millions of yen)Six months ended
December 31, 2023
Amount¥978－(12,759)－(776)(8,348)－¥－10,000(28,182)
69,789(140,605)(9,545)407(2,239)－(808)(23,952)
3,465
45,101
180,418(1,129)(99,266)
2,151(38,765)
246,195(1,852)－104－¥223,770¥207,430

Segment Information

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

Sales, Segment incomeSales

Domestic
Business

North America
businessAsiabusiness

Total

Adjustment

Consolidated¥821,242¥116,978¥40,229¥978,449¥－¥978,449

5,784

－

63

5,847

(5,847)－Total

827,025

116,978

40,292984,295(5,847)

978,449

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

Sales to third parties
Intersegment sales

Note: Segment income is adjusted to the quarterly consolidated operating income.
For the Second Quarter Ended December 31, 2023
1. Information concerning sales and income by reporting segment(Millions of yen)
Reporting segment

Sales, Segment income
Sales

DomesticBusinessNorth America
businessAsiabusiness

Total

AdjustmentConsolidated¥886,407¥121,117¥40,069¥1,047,594¥－¥1,047,594

5,763

－

39

5,802

(5,802)－

Total

892,170

121,117

40,1081,053,396(5,802)

1,047,594

Segment income¥73,166¥2,143¥193¥75,501¥－¥75,501

Sales to third parties
Intersegment sales

Note: Segment income is adjusted to the quarterly consolidated operating income.

9