Pan Pacific International : Summary Report of Consolidated Financial Results For the Fiscal Year Ended June 30, 2021

Summary Report of Consolidated Financial Results

For the Fiscal Year Ended June 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, Executive Officer and CFO (Phone:[phone])
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 fiscal year ended June 30, 2021 (from July 1, 2020 to June 30, 2021)

(1) Results of Business Operations					(Millions of yen, except per-share data)
		Change	Operating	Change	Ordinary	Change	Profit Attributable	Change
	Net Sales	to Owners of
	(%)	Income	(%)	Income	(%)	(%)
		Parent
Fiscal year ended	1,708,635	1.6	81,306	7.8	81,526	9.3	53,851	7.9
June 30, 2021
Fiscal year ended	1,681,947	26.6	75,424	－	74,600	－	49,927	－
June 30, 2020

(Note) Comprehensive income: 58,344 million yen [17.1%] (FY 2021.6), 49,833 million yen [－%] (FY 2020.6)

	Net Income	Net Income	Return on	Ordinary	Operating
	Per Share	Per Share-fully	Income on Total	Income on
	Equity	(%)
	(Yen)	diluted (Yen)	Assets (%)	Net Sales (%)
Fiscal year ended	84.93	84.70	13.6		6.1	4.8
June 30, 2021
Fiscal year ended	78.79	78.58	14.3		5.8	4.5
June 30, 2020

(Note) The accounting policy has been changed since the fiscal year ending June 2021, and the figures for the fiscal year ended June 2020 are the figures after the retroactive adjustment.

The year-on-year percentage change in 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	Net assets	Ratio of Shareholders' Equity	Net Assets
	to Total Assets (%)	per Share (Yen)
As of	1,370,252	438,765	30.6	660.12
June 30,2021
June 30,2020	1,297,231	388,999	28.7	586.58

(Reference) Equity: 418,661 million yen (as of June 30, 2021), 371,839 million yen (as of June 30, 2020)

(Note) The accounting policy has been changed since the fiscal year ending June 2021, and the figures for the fiscal year ended June 2020 are the figures after the retroactive adjustment.

(3) The Consolidated Statements of Cash Flows										(Millions of yen)
	Cash Flows from			Cash Flows from			Cash Flows from		Cash and Cash
	Operating Activities		Investing Activities		Financing Activities		Equivalents
Fiscal year ended	79,054					(78,042)				(28,954)		160,875
June 30, 2021
Fiscal year ended	65,135					(33,452)				(34,030)		183,602
June 30, 2020
2. Dividends
	Dividend per share (yen)					Dividends in	Dividend payout		Dividends on net
	Six Months Ended		Year Ended		Total			total (annual,	ratio (consolidated		assets (consolidated
	December 31			June 30			Millions of yen)	basis, %)			basis, %)
Year Ended June 30,	3.00			12.00		15.00			9,508		19.0			2.7
2020
Year Ended June 30,	3.00			13.00		16.00			10,147		18.8			2.6
2021
Year Ending June 30,	3.00			13.50		16.50						―
2022 (Forecast)

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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)

						Profit		Net Income
	Change	Operating	Change	Ordinary	Change	Attributable	Change
Net Sales	per
(%)	Income	(%)	Income	(%)	to Owners of	(%)
	Share(Yen)
						Parent

Six Months Ending	929,000	8.9	44,500	(9.8)	43,700	(9.3)	30,300	(7.2)	47.78
December 31, 2021
Year Ending	1,870,000	9.4	85,000	4.5	83,000	1.8	57,600	7.0	90.82
June 30, 2022

4. Others

1. Significant changes in the scope of consolidation: None

Newly consolidated: － , Excluded:－

(2) Changes in accounting policies concerning preparation of consolidated financial statements

1. ① Changes in line with revision to accounting standards: None

   ② Other changes: Yes

   ③ Changes in accounting estimates: None

   ④ Restatement: None

2. Number of outstanding shares (Common share)

① Number of outstanding shares (Treasury share included)	June 30, 2021	634,239,440 shares
	June 30, 2020	633,929,040 shares
② Number of treasury share	June 30, 2021	18,924 shares
	June 30, 2020	18,924 shares
③ Average number of outstanding shares during the period	June 30, 2021	634,086,639 shares
	June 30, 2020	633,643,173 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 August 17, 2021. Presentation materials for the briefing will be available on the Company's website.

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Consolidated Balance Sheets

		(Millions of yen)
	As of June 30,	As of June 30,
	2020	2021
	Amount	Amount
Assets
Current assets
Cash and deposits	¥179,785	¥157,522
Notes and accounts receivables-trade	18,378	21,074
Accounts receivables - installment	68,293	65,491
Operating loans	8,076	7,658
Merchandise and finished goods	187,775	203,416
Prepaid expenses	6,772	7,671
Deposits paid	4,377	4,364
Other	21,572	29,577
Allowance for doubtful accounts	(890)	(1,276)
Total current assets	494,138	495,496
Non-current assets
Property, plant and equipment
Buildings and structures, net	264,035	261,481
Tools, furniture and fixtures, net	29,898	32,848
Other, net	1,572	1,517
Land	325,499	317,402
Construction in progress	1,706	7,830
Right of use assets, net	－	22,672
Total property, plant and equipment	622,710	643,750
Intangible assets
Goodwill	15,935	56,304
Other	20,948	23,255
Total intangible assets	36,883	79,559
Investments and other assets
Investment securities	17,515	29,082
Long-term loan receivables	1,269	1,192
Long-term prepaid expenses	5,729	5,140
Retirement benefit asset	16,236	16,756
Deferred tax assets	23,150	23,713
Lease and guarantee deposits	78,624	73,882
Other	3,178	3,802
Allowance for doubtful accounts	(2,201)	(2,120)
Total investments and other assets
143,500	151,447
Total non-current assets
803,093	874,756
Total assets	¥1,297,231	¥1,370,252

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		(Millions of yen)
	As of June 30,	As of June 30,
	2020	2021
	Amount	Amount
Liabilities
Current liabilities
Notes and accounts payables - trade	¥148,226	¥149,984
Short-term loan payables	－	1,500
Current portion of long-term loan payables	13,201	33,613
Current portion of bonds	11,916	22,566
Payables under fluidity lease receivables	4,512	191
Accounts payables - other	53,481	46,508
Lease obligations	46	1,380
Accrued expenses	22,588	25,550
Deposits received	16,806	28,000
Income taxes payables	10,969	11,299
Provision for point card certificates	6,924	5,747
Other	23,558	27,211
Total current liabilities
312,227	353,550
Non-current liabilities
Bond payables	226,542	203,976
Long-term loan payables	276,191	271,507
Long-term payables under fluidity lease receivables	191	－
Lease obligations	99	21,087
Asset retirement obligations	23,300	24,165
Negative goodwill	94	7
Other	69,588	57,195
Total non-current liabilities	596,005	577,937
Total liabilities	908,232	931,487
Net assets
Shareholders' equity
Capital stock	23,008	23,153
Capital surplus	16,977	17,121
Retained earnings	332,263	376,268
Treasury shares	(15)	(15)
Total shareholders' equity	372,233	416,527
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	529	1,165
Foreign currency translation adjustment	(865)	770
Remeasurements of defined benefit plans	(58)	199
Total accumulated other comprehensive income	(394)	2,133
Share acquisition rights	218	216
Non-controlling interests	16,942	19,888
Total net assets	388,999	438,765
Total liabilities and net assets	¥1,297,231	¥1,370,252

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Consolidated Statements of Income

		(Millions of yen)
	Fiscal year ended	Fiscal year ended
	June 30, 2020	June 30, 2021
	Amount	Amount
Net sales	¥1,681,947	¥1,708,635
Cost of sales	1,200,831	1,211,311
Gross profit	481,116	497,325
Selling, general and administrative expenses	405,692	416,018
Operating income
75,424	81,306
Non-operating income
Interest and dividend income	705	617
Amortization of negative goodwill	86	86
Share of profit of entities accounted for using equity method	84	237
Foreign exchange gains	224	1,580
Other	4,222	4,426
Total non-operating income	5,322	6,945
Non-operating expenses
Interest expenses paid on loans and bonds	5,175	5,704
Cost of claim's liquidation	162	49
Commission fee	111	61
Other	698	911
Total non-operating expenses	6,146	6,725
Ordinary income	74,600	81,526
Extraordinary income
Gain on sales of non-current assets	801	94
Gain on bargain purchase	241	－
Gain on sale of businesses	494	－
Reversal of provision for loss on closing of stores	268	－
Gain on revision of retirement benefit plan	5,111	－
Gain on reversal of share acquisition rights	220	0
Gain on insurance claims	－	1,269
Other	425	75
Total extraordinary income	7,560	1,437
Extraordinary losses
Impairment loss	4,195	16,711
Loss on retirement of non-current assets	3,513	1,024
Loss on sale of shares of subsidiaries and affiliates	145	－
Loss on closing of stores	1,046	630
Loss on disaster	220	76
Other	453	257
Total extraordinary losses	9,572	18,698
Profit before income taxes	72,588	64,265
Income taxes - current	20,637	19,408
Income taxes - deferred	1,471	(10,019)
Total income taxes	22,108	9,388
Profit	50,480	54,877
Profit attributable to non-controlling interests	553	1,026
Profit attributable to owners of parent	¥49,927	¥53,851

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