Summary Report of Consolidated Financial Results
For the First Quarter Ended September 30, 2021

(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:
Keita Shimizu, Director and Managing Executive Officer, 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 first quarter of fiscal 2022 (From July 1, 2021 to September30, 2021)(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(%)
ParentThree Months Ended
△30.7
△27.9
△24.6
445,474
6.5
16,075
16,447
12,420
September 30, 2021
Three Months Ended△2.4
418,474
23,20410.3
22,80612.0
16,47031.3
September 30, 2020
(Note) Comprehensive income: 12,079 million yen [△28.8%] (FY 2022.6 1Q), 16,962 million yen [42.1%] (FY 2021.6 1Q)
Net Income
Per Share(Yen)Net Income
Per Share-fully
diluted (Yen)Three Months Ended
19.88
19.83
September 30, 2021
Three Months Ended
25.98
25.91
September 30, 2020
(Note) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the first quarter under review, and each figure for thefirst quarter of the fiscal year ending June 30, 2022, is the figure after applying the accounting standard andrelevant ASBJ regulations.
(2) Financial Position(Millions of yen, except per-share data)
Total Assets

Ratio of Shareholders’ Equity
to Total Assets (%)

Net assets

As of September 30,
1,317,207
361,704
25.9
2021
June 30, 2021
1,370,252
438,765
30.6(Reference) Equity: 341,284 million yen (as of September 30, 2021), 418,661 million yen (as of June 30, 2021)
2. Dividends
Three Months Endof September 30
Year Ended June 30,2021
Year Ending June 30,2022
Year Ending June 30,2022 (Forecast)－Annual Dividends per share
Six Months End
Nine Months Endof December 31of March 31

Year Endof June 30

Total

3.00

－

13.00

16.00

3.00

－

13.50

16.50

－(Note) Revision to the dividend forecast in the first quarter of fiscal 2022: None1

3. Consolidated Business Forecast：For the year ending June 30, 2022 (From July 1, 2021 to June 30, 2022)(Millions of yen, except per-share data)
Net Sales

Change(%)

Operating
IncomeChange(%)

Ordinary
IncomeChange(%)

ProfitAttributableto Owners ofParentChange(%)

Net IncomeperShare(Yen)Six Months Ending
929,000
8.9
44,500(9.8)
43,700(9.3)
30,300(7.2)
49.63
December 31, 2021
Year Ending
1,870,000
9.4
85,000
4.5
83,0001.8
57,6007.0
95.46
June 30, 2022
(Note) 1. Revision to the business forecast in the first quarter of fiscal 2022: None
2. At the board of directors meeting held on September 6, 2021, the Company resolved to acquire treasury shares
and acquired 38,054,300 treasury shares. The impact of the acquisition of treasury shares are taken into
consideration in the consolidated earnings forecast, “Net income per share”.
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: Yes② Other changes: None
③ Changes in accounting estimates: None
④ Restatement: None
(4) Number of outstanding shares (Common share)① Number of outstanding shares (Treasury share included)
September 30, 2021
634,289,840 shares
June 30, 2021
634,239,440 shares② Number of treasury share
September 30, 2021
38,073,224 shares
June 30, 2021
18,924 shares③ Average number of outstanding shares during the period
September 30, 2021
624,732,012 shares
September 30, 2020
633,968,473 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 November
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 September 30,

2021

2021

AmountAmountAssetsCurrent assets
Cash and deposits¥157,522¥104,705

Notes and accounts receivables-trade

21,074

22,315

Accounts receivables - installment

65,491

62,819Operating loans
Merchandise and finished goods
Prepaid expenses

7,658

7,660

203,416

203,490

7,671

8,077

Deposits paid

4,364

4,189

Other

29,577

29,181

Allowance for doubtful accounts(1,276)(1,418)495,496

441,018

261,481

261,855

Total current assets

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

32,84833,355Lands

317,402317,410

Right of use assets, net

22,67222,751Other, net

9,347

11,567643,750

646,938

Goodwill

56,30455,830Other

23,25523,461

Total intangible assets

79,55979,291

Investment securities

29,082

29,629Long-term loan receivables

1,192

1,172

Long-term prepaid expenses

5,140

5,048

Retirement benefit assets

16,756

16,825

Deferred tax assets

23,71322,128

Lease and guarantee deposits

73,88273,489Total property, plant and equipment
Intangible assets

Investments and other assets

Other

3,802

3,833

Allowance for doubtful accounts(2,120)(2,164)

151,447

149,960

874,756

876,189¥1,370,252¥1,317,207

Total investments and other assets
Total non-current assets

Total assets3

(Millions of yen)
As of June 30,

As of September 30,

2021

2021

AmountAmountLiabilities
Current liabilities
Notes and accounts payables - trade¥149,984¥153,489

Short-term loan payables

1,500

70,000Current portion of long-term loan payables

33,61331,382Current portion of bonds

22,566

21,514

191－

46,50842,721

Payables under fluidity lease receivables
Accounts payables - other
Lease obligations

1,380

1,420

Accrued expenses

25,55022,577

Deposits received

28,000

14,115

Income taxes payables

11,299

5,059

Provision for point card certificates

5,747

2,294

－

11,138Contract liabilities
Other

27,211

16,442

Total current liabilities

353,550

392,151

Bond payables

203,976

203,200

Long-term loan payables

271,507259,072

Lease obligations

21,08721,247

Asset retirement obligations

24,165

24,593

7－57,195

55,240Non-current liabilities

Negative goodwill
Other
Total non-current liabilities

577,937

563,352

931,487

955,503

Share capital

23,15323,176

Capital surplus

17,121

17,145Retained earnings

376,268

380,443(15)(80,956)

416,527

339,808

1,165

1,380

770

(95)

Total liabilities
Net assets
Shareholders' equity

Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustmentRemeasurements of defined benefit plans

199

191

2,133

1,476

Share acquisition rights

216

216

Non-controlling interests

19,88820,204

Total accumulated other comprehensive income

Total net assets
Total liabilities and net assets

4438,765

361,704¥1,370,252¥1,317,207

Consolidated Quarterly Statements of Income
Three months ended
September 30, 2020
Amount(Millions of yen)Three months ended
September 30, 2021
Amount¥418,474¥445,474

295,019

317,997

123,455

127,477

100,251

111,40223,204

16,075Non-operating income
Interest and dividend income
Amortization of negative goodwill
Share of profit of entities accounted for using equity method
Foreign exchange gains
Other
Total non-operating income

165
22
111－
1,387
1,685

514
7175
615
1,140
2,451

Non-operating expenses
Interest expenses paid on loans and bonds
Foreign exchange losses
Cost of claim's liquidation
Other
Total non-operating expenses
Ordinary income

1,277
671
23
112
2,083
22,806

1,937
－
1141
2,079
16,447

94
822
53
969

2－－
2129
202
847
386
23,389142
20611178
16,271

Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests

4,568
1,966
6,534
16,855
385

3,239
396
3,635
12,636
216

Profit attributable to owners of parent¥16,470¥12,420

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income

Extraordinary income
Gain on sales of non-current assets
Gain on insurance claims
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

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

ProfitThree months ended

Three months ended

September 30, 2020

September 30, 2021

AmountAmount¥16,855¥12,636

Valuation difference on available-for-sale securities

241

249

Foreign currency translation adjustment

(135)

(799)

1(3)

0(3)

107(557)¥16,962¥12,079¥16,547¥11,763

415

316

Other comprehensive income

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

6Consolidated Quarterly Statements of Cash Flows
Three months ended
September 30, 2020
Amount(Millions of yen)Three months ended
September 30, 2021
AmountCash flows from operating activities:
Profit before income taxes
Depreciation and amortization
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 (decrease) in notes and accounts payables - trade
Decrease in accounts receivables - installment
Decrease in accounts payables - other
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Income taxes refund
Proceeds from insurance benefits
Payments for loss on disasterNet cash provided by (used in) operating activities¥23,389
7,374(22)(1,948)(165)
1,277(111)35(822)(501)(418)(6,744)
4,625(3,138)(1,163)
21,66882(915)(9,441)
4
1,286(8)
12,676¥16,2719,067(7)(5,187)
(514)
1,937
(175)
141
－
(1,132)
(9)
3,498
2,646
(2,684)(3,774)20,077364(1,630)(22,545)3－(13)(3,744)

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
Payment for store opening in progress
Other, net
Net cash used in investing activities(11,335)
2,516
(726)
(756)
(419)
109
(165)
42(10,734)(10,272)2(918)－(245)
319
(176)
(9)
(11,301)

Cash flows from financing activities:
Net increase in short-term loan payables
Repayments of long-term loan payables
Redemption of bonds
Repayments of payables under fluidity lease receivables
Proceeds from issuance of common shares
Cash dividends paid
Purchase of treasury shares
Other, net
Net cash used in financing activities
Effect of foreign exchange rate change on cash and cash equivalents
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of period

5,000(5,392)(1,108)(1,861)
113(7,607)－(12)(10,867)(794)(9,719)183,60268,500(14,947)(1,828)(192)
48(8,245)(80,941)(340)(37,946)85(52,905)
160,875¥173,883¥107,970

Cash and cash equivalents at the end of period7

Segment Information
For the first quarter ended September 30, 2021
1. Information concerning sales and income by reporting segment(Millions of yen)
Reporting segment
DiscountStorebusiness

AdjustmConsolidated
ent(Note 3)(Note 2)

Sub Total

Others(Note 1)

Total

¥14,570¥441,933¥3,541¥445,474¥－¥445,474

GMS
businessRentbusiness¥322,065 ¥105,297

Sales, Segment income
Sales
Sales to third parties
Intersegment sales
Total
Segment income (loss)

1,894

2,918

318

5,131

1,009

6,140

(6,140)－323,960

108,216

14,889447,064

4,550

451,614(6,140)445,474¥15,345¥368¥2,061¥17,774 ¥(1,730)¥16,045¥30¥16,075

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 ¥30 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 Company has applied the Accounting Standard for Revenue Recognition, etc. from the beginning of the first quarter
under review, and changed the accounting method for revenue recognition. Accordingly, the Company has also changed
the method of measuring profit or loss of reporting segments.
As a result of this change, sales of the “Discount Store business” for the first quarter of the current consolidated
cumulative period decreased by ¥1,676 million and sales of the “GMS business” decreased by ¥393 million compared tothe conventional method.
3. Information concerning impairment loss of fixed assets or goodwill by reporting segment
Not applicable
For the first quarter ended September 30, 2020
1. Information concerning sales and income by reporting segment(Millions of yen)
Reporting segment
DiscountStorebusiness

AdjustmConsolidated
ent(Note 3)(Note 2)

Sub Total

Others(Note 1)

Total

¥16,413¥414,980¥3,494¥418,474¥－¥418,474

GMS
businessRentbusiness¥286,195 ¥112,372

Sales, Segment income
Sales
Sales to third parties
Intersegment sales
Total
Segment income (loss)

1,874

2,618

280

4,772

1,059

5,831

(5,831)－

288,069

114,990

16,693419,752

4,553

424,305(5,831)

418,474¥16,065¥3,657¥3,957¥23,679¥(955)¥22,724¥480¥23,204

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 ¥480 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
Not applicable8