Pan Pacific International : Fourth Quarter Presentation Slides for Financial Results Briefing

Results for FY 2023

August 16, 2023

Pan Pacific International Holdings Corporation

INDEX

• Fiscal year ended June 30, 2023 Overview of financial results

• Fiscal year ending June 30, 2024 Strategies and initiatives

• Appendix

Explanatory notes for these materials

1. The actual values presented in these materials are rounded 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", Macau as "MO"and Group as "GP."
3. PPIH applies the "Ordinance on Terminology, Forms, and Preparation Methods of Consolidated Financial Statements," but there are sections in 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. The exchange rates used for overseas operations are shown below. (Gelson's fiscal year ends in June, so the exchange rate is different. )

Unit：Yen			USD			USD		SGD		THB			HKD
P/L	U.S. dollar	B/S	(Gelson's)	Singapore dollar	P/L	Thai baht	B/S	Hong Kong dollar
FY 2022			P/L	B/S	P/L	B/S		P/L	B/S
113.06	122.41	118.42	136.69	83.84	90.47	3.45		3.68	14.52	15.64
FY 2023	136.00	133.54	138.09	144.99	99.05	100.60	3.85		3.91	17.35	17.01

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Executive Summary （1/2）

• Review of the fiscal year ended June 30, 2023 ＞

• For the fiscal year ended June 30, 2023, PPIH achieved its 34th consecutive year of growth in both sales and profits,with net sales of 1,936.8 billion yen (+105.5 billion yen/+5.8% YoY), operating profit of 105.3 billion yen (+16.6 billion yen/+18.7% YoY), and net income of 66.2 billion yen (+4.2 billion yen/+6.8% YoY).
• Operating profit exceeded 100 billion yen for the first time and the operating profit margin reached 5.4% (the first time since FY2018 that it exceeded 5%), confirming that PPIH's "earning power" has increased,thanks to the reforms to its earnings structure that have been implemented over several years.
• • Sales: We successfully adapted to changes in the external environment. By offering "CV+D+A" through capturing going-out demand, developing attractive products, and appealing to customers with low prices, we were able to gain and increase the popularity . Domestic retail sales grew significantly, driven by a recovery in tax-free sales.
  • Gross profit: Despite rising procurement costs, our efforts to improve product procurement capabilities, expand PB/OEM, improve pricing accuracy, and improve inventory turnover ratio have been successful. Gross profit margin grew significantly to 31.0% (+1.3% YoY, +57.0 billion yen in amount).
  • SG&A： Despite large increases in many costs, including labour and utilities, increases were controlled by improving labour productivity, optimizing personnel allocation, and controlling other expenses (+40.4 billion yen YoY; SG&A to sales ratio remained at +0.8% YoY).

2

Executive Summary（2/2）

＜Visionary 2025 (fiscal year ending June 30, 2025): achieving 120 billion yen in operating income＞ In the fiscal year ending June 30, 2024, we will maintain an operating margin of 5% or higher while focusing on investments for growth and human resource development, based on the performance expansion and improvement in profitability confirmed up to now.

• We will continue to grow as a "profitable" retail company that is not only "deflation-proof" but also "inflation-proof" in order to achieve an operating profit of 120 billion yen in the fiscal year ending June 30, 2025.
• • In the DS business, in addition to further increasing tax-free sales, we will actively introduce new products and prices that focus on "popularity" to attract more customers to existing stores. In addition, we will open new stores more aggressively than before to further expand the business.
  • In the GMS business, based on the success in improving the business structure (strengthening profitability), we aim to increase the number of customers and sales by implementing new sales promotions by business format and by customer, as well as strengthening non-food merchandising. In addition, we will promote further reforms such as integrating the Tenant Division and the MD Development Division along with the expansion of PB and OEM product development.
  • Overseas business is on track to resolve short-term issues. We will now enter an aggressive phase of business development through a series of hypotheses and verifications.
    【Asia】 We will continue to open new stores, and at the same time, will work to improve profitability of the stores which have opened by FY2023.
    【North America】 We will put our new store opening plan into action and look forward to significant growth from FY2025 onward

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Fiscal year ended June 30, 2023 Overview of Financial Results

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