- Visionary 2025/2030 -Medium-to-long term management plan
(August 2022 Revision)
August 12, 2022

Pan Pacific International Holdings Corporation

Progress toward 200 billion yen in operating income (FY2030)
Quantitative

FY2019FY2022

Sales 1.3 trillion yen・OP 63.1 billion yen（Before Passion2030）

Sales 1.8 trillion yen・OP 88.7 billion yen

Domestic Business

Qualitative







Continued growth in DS business・Creation of UDR business format, expansionof PB ratio
Profitability improvement in GMS business・Operating profit increased by 14 billion yen(vs FY2019)
・Shift to individual store management has
progressed.
Promotion of Digital Strategies
・10 million registered app users ('22/7);
preparations underway to enhancefunctionality.

Strengthen financial business・Aim to achieve operating income of 10 billion
yen in FY2026

Overseas Business







Building and expanding Japan Brand Specialty
Stores・Asia business has grown to 30 stores withsales of 69 billion yen and OP of 1.7 billion yen.
・Sushi and other restaurant & retail foodbusiness format has launched
Sales in North America expanded to 198.2
billion yen and OP to 10.4 billion yen, with theacquisition of Gelson's.

Promote SPA of food・Acceleration of PPIC activities, PB sales 6.5%

1

Medium-to-long term management plan
(August 2022 Revision)
From Passion 2030

To Visionary 2025/2030

2

Changes in the external environment
since Passion 2030 was announced in February 2020
Changes in

due to COVID-19



consumer lifestyles/purchasing behavior

Cost inflation



Growing social demand for ESG

Change in activity area (Urban ⇒ Rural/Suburban)

Change in motives for store visits (increase in planned buying)
Change in purchasing methods (accelerated digital shift)

Various costs increased, including procurement of goods,
logistics, and utilities
Minimum wages also continue to rise

Increased environmental/human rights awareness among
consumers and society
Increased need for women's empowerment and humanresource development

Acceleration of governance enhancement including revised CG
Code, etc.

Based on the “customer matters most” principle,
PPIH will continue to serve changing customers and society.

3Significance of Visionary 2025/2030 (Positioning)
From Passion 2030 to Visionary 2025/2030


Immediately after the announcement of Passion2030 in February 2020, there were major changes in the environment,
mainly due to COVID-19, and the environment surrounding the retail industry and our company.
Two and a half years have passed since then, and we have revised our future growth strategies and numerical targets
to reflect these changes in the environment, and are now announcing them as Visionary 2025 and Visionary 2030.
Visionary2025 shows the numerical targets and growth strategies for the three years ending June 30, 2025. Please
note that Visionary2030 is a modification of Passion 2030 by reflecting the vision of the current management teamand the next generations, which aim to be a visionary company.

What we consider to be a Visionary Company






A company that adheres to the PPIH corporate principle of putting the customer matters most principle first in every
corner of the organization (e.g., Store should be the most convenient store for the customer).

A company that responds to change and takes on challenges boldly (always challenging boldly but withdrawing
quickly when it failed).
A company that constantly grows and continues to set bold goals.

A company that targets innovation to take its core values (name = branding, stores, products and human resources)
to the next level.

A management team that is ambitious for the growth of PPIH as a company, not for personal goals, and that can pass
the baton of management and continuous growth to the next generation in a timely manner.

4

Target for Visionary 2025/2030
The operating income target of 200 billion yen for FY2030 will be maintained.
However, in order to promote a shift in management strategy, sales will be excluded
from the numerical targets (short-term sales targets will be presented as needed).
Quantitative

FY2025 Sales 2 trillion yen・OP 120 billion yen (OPM 6.0%)
FY2030OP 200 billion yen（１）Domestic Business

Improvement of profitability

Qualitative Expand business value chain（SPA innovation, Finance business）
 Offer new CV+D+A through DX
 Promote organizational integration andproductivity improvement
 Continuous business format creation（２）Overseas Business

Expand business scale and improve
profitability
 Expand business scale by new store
openings（Retail＋Restaurant & retail）
 Improve profitability by establishing a
global value chain（３）ESG Activities Realization of a sustainable society and corporation

5

Significance of Visionary 2025/2030 (Growth Strategy)
Visionary 2030

 Building a New Value Chain

 In the upstream of the value chain, aim for PPIH-style SPA. In the downstream, consider financeincluding payment and settlement. Review the value chain as appropriate, and always build an optimal
profit model.
 To secure OP by focusing on improving gross margin, increasing productivity, and controlling SG&A
expenses.

 Revisiting the PPIH Group's corporate principle of "the customer matters most", and aiming to be"the most convenient store for the customer".
 Promote CRM measures based on the "People Brand" declaration.

 Realization of a product development cycle based on "the customer matters most" principle in order torealize a PPIH-style SPA.

 Becoming a Highly Productive Company

 By incorporating the labor distribution ratio as a management indicator, we will ensure that thecompany has a strong fundamental strength. On the other hand, we will aggressively invest in "people,"
which is one of our strengths.
 Constantly reviewing SG&A expenses and never neglecting to invest in the future.

Visionary 2025

 Numerical targets are sales of 2 trillion yen and operating income of 120 billion yen.
 Main measures (or changes in measures) are shown on the next page and beyond.

6Improve profit margin by creating a new value chain of thebusiness Expand/restructure the business value chain as a way to increase operating income.

 Focus on "revenue per customer," which has been unattainable until now, and use theenhanced majica app as a core tool to achieve this goal.

Until now

From now on

Merchandising

Promote store visits
by Ads

Sales

Payment

FY2022 Domestic
PB sales ratio
15.3%

FY2022 Advertising
Business
OP 1.5 bil. yen

Profit generation from instore sales based on
product presentation andsurprisingly low prices

FY2022Finance Business
OP 0.6 bil. yen<Expand to upstream>
Improve gross margin bypromoting PPIH-style
SPA.
(+ enhancedifferentiation by original
products)(+ reflect customer’s
voice through the app)・Generate revenue
using the majica app
as an advertising
medium.
(+ CRM measures toenhance thepurchasing
experience)・Strengthened
through DX = new
CV+D+A offerings forchanging customer
needs<Expand todownstream>financial revenue from
capturing “payment
and settlement”(+ control outflow ofcosts to outside

parties)7

Continued annual growth of more than 10%
toward operating profit of 200 billion yen in FY2030

Since the announcement of the first mid-term management plan in the FY2015, the company has achieved averageannual operating profit growth of 12.4%, despite the loss of inbound demand due to the pandemic.

Going forward, we will continue to grow at an average annual rate of more than 10% and achieve operating profit of
200 billion yen in the FY2030.

▶OP and OPM from FY2015

Visionary2025

OP（100 million yen）
2,000

Without
inbound
免税抜き
sales

Inbound sales
免税実績
actualOPM（%）+80 billion yen(CAGR 10.8%)

営業利益率
OPM

12.0%

10.0%

CAGR 10.6%（+31.3 billion yen in 3 years）

1,600

CAGR 12.4%（+49.6 billion yen in 7 years）

1,200

Visionary2030

8.0%

6.0%

6.0%

800
4.0%
400

2.0%

0.0%

0
15年

FY20156月期

16年

FY20166月期

17年

FY20176月期

18年

FY20186月期

19年

FY2019

6月期

20年

21年

6月期

6月期

FY2020

FY2021

22年

23年

6月期

6月期

FY2022

FY2023

The COVID-19 pandemic

24年

FY20246月期

25年

FY20256月期

30年

FY2030

6月期

8Quantitative Target for Visionary 2025
Group-wide growth of +31.3 billion yen on operating income, and +1.2% on operating profit margin in FY2025

For domestic business, operating profit increases by 16.4 billion yen, and +0.8% increase in OPM through improving
profitability. For overseas business, operating profit increases by 14.9 billion yen, and +2.8% in OPM through expanding
businesses and improving profitability. (Composition of Overseas business in operating profit increases to 22.5%)

FY2022

Consolidated

Sales
OP

OPM

Amount1831.2

88.7

4.8%

Ratio

-

-

Amount2000.0

Domestic

81.5%(+0.8)-

1630.0

OPM

4.9%

-

5.7%

Overseas+38.4%

18.5%(+2.8)

-

14.6%

370.0

OPM

4.5%

-

7.3%

13.7%

-

+21.4%(+16.4)

267.3

12.1

(+1.2)

-

93.0

Sales
OP

-

+4.2%

6.0%

85.4%

86.3%

+9.2%

Ratio

+35.2%(+31.3)1563.976.6

Growth rate

(Unit: billion yen)

120.0

Sales
OP

FY202527.0+123.1%(+14.9)

77.5%

22.5%

*Estimated exchange rate：1USD＝122.41 yen,1HKD＝15.64 yen,1SGD＝90.47 yen,1THB＝3.68 yen,1MYR＝29.14 yen,1TWD＝4.29 yen,1MOP＝15.18 yen

91. Growth Targets for Domestic Business<Growthstrategy>Increase the profitability






<Quantitative
target >Operating
Profit<Reference>
OPM
ROIC

Domestic
Total
DS

36.3
bil. yen

3.3%
6.2%

FY202276.6 bil. yen

GMS

25.5
bil. yen

5.4%
4.8%

Finance0.6
bil. Yen

4.9 %

3.1%
8.4%

Others14.1
bil. Yen

Promote PPIH-style SPA

Offer “New CV+D+A” through DX

Organizational integration and promote efficiency improvement
Continuous creation of business formats
Strengthen finance business

FY2025

Domestic
Total

93 bil. Yen（+16.4 bil. yen/+21.4%）

DS

GMS

（+8.7 bil.
/+23.8%）（+4.5 bil.
/+17.5%）

3.9%

6.4%

45 bil. yen 30 bil. yen

7.1%

5.6%

Finance

6 bil. yen（+5.4 bil.
/+906.7%）

5.7 %Others

12 bil. yen（-2.1 bil.
/-14.9%）

15.4%
55.0%

10

(1) PPIH-style SPA
PB/OEM ratio

Domestic
Total
DS
Business
GMS
Business

Development(directly managed store)

FY2022

FY2025

FY2022

FY2025

14.2%

25.0%

25.2%

27.5%

17.9%

25.0%

26.1%

27.5%

15.3%

25.0%

25.5%

27.5%

＋ Including the effect ofimproved GPM of PB/OEM
and NB products

Dev.

 Promote product development that can demonstrate "CV+D+A" that matches theimage of our stores as a source of competitive advantage.
 Reorganization of MD/PB (strengthening of product development staff, start of
SPA innovation PJ, etc.)

Sales Narrowing down standard SKUs. Strengthening PB/OEM by shelf allocations andbuying-space creation. Strengthen attractive and strategic items.
 By further strengthening the inventory turnover ratio, realize a buying space with
"Something New” whenever customers come in.

Sales

Customer
Review(App)

Gross margin ratio

Customer
Review(App) Create a mechanism to engage customers by utilizing customer data linked to
majica member information and the review function of the majica app (i.e.,
respond to customer needs more quickly and deeply).

11

(2) Offer "New CV+D+A" through DX

 Expand "CV+D+A" to outside of the store with majica app as a core, further enhance the
shopping experience, and realize a "new CV+D+A" with less or no stress.

Until now

Before visit(=outside the store）

During visit(=inside the store)

After visit（＝outside the store）

Recognition, interest andcomparison

Experience and Purchase

Share and SpreadCV

Convenience

D

Discount

A

Amusement

From now on・Store has everything you need・Open anytime
・cheap・Feels cheap(display and presentation)・Interesting discovery
・The magical feeling ofsearching for products

Further enhance the shopping experience through advanced app functions(⇒ details to be announced separately)【CV】CRM→Provide timely and appropriate informationfor each individual customer (coupons, discountinformation, etc.)【D】 Coupon･Point→Capable of grasping product information andsearching inventory from outside the store→Various services are even more convenient withthe app【CV】 Product Information Search→Consolidate sales promotion to majica【CV】 Service【A】 Review Posting→Review and posting functions forpurchased products allow the real voices ofcustomers to be shared (enabling customerparticipatory product development)12

(3) Promote organizational integrationand productivity improvement
Improve company-wide cost efficiency
by further promoting organizational integration

Since the DS and GMS businesses differ only in customer base, establish a more
efficient and robust operational structure while maintaining the business format
 Improving the efficiency of operations through consolidation of MD HQ, andfurther enhancing individual store management

Improved efficiency and manpower-saving in store operations
through DX

With labor shortages and rising labor costs expected, limited personnel will focus
on areas where manpower is needed to improve the quality of store operations andprofit margins

 Areas where manpower is needed Store management (spot purchasing, creating buying space, etc.)
 Activities to provide feedback to HQ on PB/OEM product development andpurchasing areas through gathering customer insights

 Areas where efficiency improvement is needed

improve operational efficiency through automation and mechanization(Examples: cash register operations, placing orders, delivery / display /replenishment / merchandise management operations)

Revitalization ofhuman resource
exchange

Review of humanresource allocation

Target (Example)

DS: In response to
expected annuallabor cost increaseof over 3%, improve
productivity andmaintain the labor
cost ratio

13(4) Expansion of financial revenue
by capturing "the payment and settlement" Increase the ratio of in-house settlement to over 50% (target for FY2025) by enhancing
the functionality of Majica app, curbing cost outflow and acquiring financial revenues.

（Target）In-house Settlement Ratio
FY 2022 39.0% → FY2025 50%＋α Expansion of membership （majica membership＋credit card
membership FY2022 13 mil. to FY2025 16 mil. ） Enhancement of majica app functionality and convenience Consolidation of services to majica

FY2022

FY2025

Operating income target for financial business(6 billion yen in FY2025)(1) Reduce outflow of settlement costs (0.5~1 billion
yen)



(2) New financial revenue (5~5.5 billion yen)majica39.0%

Other E money

Other credit card

Other E money

majica50%＋αOther credit card
In-house Operation（Preventing outflow of the commissions）

Increase in-house settlement ratio = Reduce settlement
costs by reducing other companies' settlement ratios(reflected in P/L of retail business)
In-house operation of settlement and cost reduction
through the start of the merchant services (from June2022)
⇒ Total cost reduction of about 1.3 billion yen in FY2023



Expand earnings by offering revolving/deferred payment
Earning revenue through use of majica outside the group(Will be able to use more than 100 million VISA member
stores worldwide)
Providing additional services such as mutual funds andinsurance products(3) Contribute to the upstream of the value chain
through data utilizationBoost P/L of retail business by utilizing purchasing datafor product development and advertising revenue
generation.

14

2. Growth Targets for Overseas Business<GrowthStrategy><Quantitative
Target>Operating
Profit<Reference>

Number of store（Retail）
OPM

ROIC

Business scale expansion
and profit margin
improvement

Overseas
Total

FY2022
12.1 bil. yen

North America

Asia





Scale expansion by opening new stores(Enhance efforts in the new businessformat( restaurant & retail etc))

Improve profitability by establishing a global
value chain

Overseas
Total

FY202527.0 bil. yen（＋14.9 bil. yen/+123.1%）

North America

Asia

15.8bil. yen

11.2bil. yen

10.4 bil. yen

1.7 bil. yen（+5.4 bil. yen/+51.9%）（+9.5bil. yen/+558.8%）

65

30

78（+13）64（+34）

5.3%

11.6%

2.5%

6.8%

17.0%

8.2%

15

(1) Expand business scale by continuing to open new storesIn the retail business, the Company will expand store openings in both Asia and North America. In particular, efforts
will be made to open “Japan Brand Specialty Store” in North America to expand business potential.
Put efforts to expand the new format (restaurant & retail, etc.) in Asia and North America, led by "SENSEN SUSHI".

The end of FY2022

Asia
Sales

30 stores＋34 stores*Breakdown by area

North
America

65 stores

FY2022 198.2 bil. yen
FY2025 234 bil. Yen

64 stores＋（14 stores confirmed, 8 stores under negotiation）

FY2022 69 bil. yen
FY2025 136 bil. yen

Sales

The end of FY2025

Expand the new format(Restaurant & retail, etc.)

SG 7 stores, TH 8 stores, HK 6 stores,
TW 5 stores, MY 7 stores, MO 1 store＋13 stores

78 stores（6 stores confirmed, 2 stores under negotiation ）North America 8 stores, Hawaii 2 stores,
Guam 1 store, Gelson’s 2 stores＋

16

(2) Improving profitability by establishing a global value chain Become a company that plays a central role in the "5 trillion yen export of Japanese
agricultural and marine products," with PPIC at the center, and promote business not
only in retail stores but also in a variety of business formats/sales channels
Producer

Distribution

Strengthen overseas PB

Supply Chain Management

Sales composition 6.5% → over 20%

Export directly from production areas to create thefastest supply chain, bringing the freshness andtaste of Japan to abroad.

Strengthen procurement
network of primary products

Retail stores

New Format（Restaurant & Retail, etc）

Export amount
About 6 bil. yen → over 10 bil. yen

・Securing Producers'
Profits to Ensure
Sustainable Trade

・Reducingprocurement costs bytrading at upstream

Producer

PPIC

Wholesale/

Public Agency,

company

Financial Inst.

Logistics

EC

Diversification of business formats
and sales channels

・Plans to expand PB
products by focusingon perishable productsthat are gaining
support overseas

 Direct exports from the place oforigin (Made in Japan)

Sales

Local gov.,17

(3) ESG initiatives

 Continue to promote and strengthen ESG initiatives to realize a sustainable society and company

 Aim to receive high scores from external evaluation organizations in order to ensure objectivity in the
promotion of ESG initiatives.

Key focus areas

Contribute tosustainable
societyE

S
Contribute tosustainable
companyG• Strengthen the response to climatechange (reducing CO2 emissions,strengthening the development ofsustainable products, etc.)• Procurement of human rights- andenvironment-conscious products andresponsible sales• Resolve social and environmental
issues through the supply chain• Establish a diversity-orientedorganization that recognizes diversity• Strengthen human resources
development• Strengthen corporate governance• Strengthen risk management

Mid-term targets

 Reduce 50% of CO₂ emissions from stores(by the FY 2030)
 Reduce waste and enhance recycling(set targets during the FY 2023)

 Calculate CO₂ emissions including Scope 3
and set reduction targets
 Enforce compliance with the Sustainable
Procurement Policy and the Supply Chain
Code of Conduct Increase the number of female StoreManagers to 100 (by the FY 2030)

 Improve the retention rate of female
employees: reduce turnover rate to 5.0%
(by the FY 2030)

 Promote the operation of next-generation
executive development program Establish Nominating and Compensation
Committee

 Design business continuity planning (BCP)
and disclosure18

(Reference) Major initiatives and current evaluations
Major initiatives

Responding to climate change:
Solar power generation

Solar panels installed on therooftops of existing stores.
Reduce CO₂ emissions bypromoting the use of electricity
derived from renewable energy
sources (installed in 16 stores,
4 of which are Corporate PPAs).

Building a sustainable supply chain:

Briefing sessions for partner companies
Briefing sessions on the
PPIH Group Supply Chain
Code of Conduct and
Self-Check Assessment
were held for approximately
700 partner companies.

Establish a diversity-oriented organizationthat recognizes diversity:

A training program that aims to produce 100
female store managers

Continuing "RISE! 100", a training program for future 100
female store managers, to learn the mental attitude,
knowledge, and skillsets necessary for store managers.

Inclusion in ESG indexes/
external evaluations (excerpt)

Selects companies with an
FTSE’s ESG rating of 2.0 or
higher and industry weights
are adjusted to be sectorneutral. PPIH has been
selected as a part of this index
since June 2022. PPIH current
score: 2.7

An index developed by Bloomberg. Selects
outstanding companies for theircommitment to formulating and expressing
policies that promote gender equality andimproving transparency. PPIH has been
selected as a part of this index consecutively
since 2019.

ESG risk rating provided by
Sustainalytics, who supports
development and implementationof responsive investment strategies
by investors around the world. PPIH
has been ranked as Low Risk since2021.
Other ESG ratings are also
improving year by year.

The PPIH Group will promotefurther improvement of the ratingsand selections of constituent
stocks by the FY 2025.

19

Reference (1) Operating Profit Waterfall
Operating Profit

Overseas business（＋14.9 bil. yen）

Domestic Business（+16.4 bil. yen）

<100 Million Yen>0
FY2022

New Stores

Operating Profit Margin

0%
FY2022

PPIH-style
SPA

FinanceBusiness

Productivity
improvement

OthersDomestic Business （+0.7%）

PPIH-style
SPA

FinanceBusiness

Productivity
improvement

ProfitExpansion by
improvement
New Storesby Global VC

Others

FY2025

Overseas business （ +0.5% ）OthersProfitimprovement
by Global VC

Others

FY202520

Reference (2) Trends in various management indexes
ROE
18%

18%
17%

16%

16%

14%

15%

10%

13%

8%

12%

6%

11%

4%

10%
9%

2%
22/6期
FY2022

23/6期
FY2023

24/6期
FY2024ROE

25/6期
FY2025• Improvement in FY2022 due to share buyback
and large foreign exchange gains• FY2023 will see a temporary decline due tothe reaction to the above, but continuous
improvement is expected thereafter.

0%(times)
1.2

120%

12%

14%

8%

Net D/E Ratio・
Capex to operating CF ratio

ROIC

22/6期
FY2022

23/6期
FY2023

24/6期
FY2024DS

GMS

overseas
海外

25/6期
FY2025consolidated
連結• In addition to growth in high-ROIC overseas
businesses, we expect steady improvement in
ROIC for both domestic businesses.
(Company-wide ROIC at the end of FY2025 will
be about 8%)• Note: ROIC = NOPAT / Invested capital (= goods and products + fixed assets(excluding some items))

100%

1.0

80%

0.8

60%

0.6

40%

0.4

20%

0.2

0%

0.0

FY2022
22/6期

FY202323/6期

設備投資÷営業CF(左軸)Capex/Operating CF (Left axis)

FY2024
24/6期

FY2025
25/6期

ネットD/Eレシオ(右軸)Net
D/E ratio (Right axis)• Net D/E ratio rose in FY2022 due to sharebuybacks, but is expected to steadily improve
in FY2023 and beyond.
• Capex is planned to be 65-75 billion yen peryear during the mid-term period. Capital
investment ratio to operating CF will
temporarily increase in FY2023, but is
expected to decrease to around 50% as
profits grow.

21

Reference (3) Dividend and Shareholder Returns

Dividend(Yen)

Payout Ratio(%)

25.0

Annual dividend

年間配当(左軸)(left axis)

20.0

25.0

Payout ratio
配当性向(右軸)(right axis)

20.0

15.0

15.0

10.0
15.0

5.0
5.5

0.0

6.5

8.0

16.0

17.0

18.0

10.0

5.0

10.0

2016/6 2017/6 2018/6 2019/6 2020/6 2021/6 2022/6 2023/6 2024/6 2025/6(Forecast)

0.0

Payout Ratio• Dividends have been increased for 19
consecutive years.

• We will continue to return profits toshareholders based on a "progressive dividend
policy," with a dividend payout ratio of 20% ormore over the medium term, while maintaining
a balance with investments for growth.

Financial Health• Conscious of the need to increase financial
strength over the medium to long term, expand
shareholders' equity and improve investment
efficiency.
• Aim to maintain and improve the externalrating of A+.

Share Buybacks• The decision will be based on comprehensive
consideration of the above dividend capacity,
financial health, future investment prospects,
stock price conditions, and other factors.

22