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

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:[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 first quarter of fiscal 2022 (From July 1, 2021 to September 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
Three Months Ended	445,474	6.5	16,075	30.7	16,447	27.9	12,420	24.6
September 30, 2021
			△		△		△
Three Months Ended	418,474	△2.4	23,204	10.3	22,806	12.0	16,470	31.3
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	Net Income
	Per Share	Per Share-fully
	(Yen)	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 the first quarter of the fiscal year ending June 30, 2022, is the figure after applying the accounting standard and relevant ASBJ regulations.

(2) Financial Position		(Millions of yen, except per-share data)
	Total Assets	Net assets	Ratio of Shareholders' Equity
	to Total 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

Annual Dividends per share

Three Months End

Six Months End

Nine Months End

Year End

Total

of September 30

of December 31

of March 31

of June 30

Year Ended June 30,

－

3.00

－

13.00

16.00

2021

Year Ending June 30,

－

2022

Year Ending June 30,

3.00

－

13.50

16.50

2022 (Forecast)

(Note) Revision to the dividend forecast in the first quarter of fiscal 2022: None

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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)	49.63
December 31, 2021
Year Ending	1,870,000	9.4	85,000	4.5	83,000	1.8	57,600	7.0	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:－

1. Simplified accounting methods and special accounting methods for preparation of the quarterly consolidated financial statements: None
2. Changes in accounting policies concerning preparation of quarterly consolidated financial statements

1. ① Changes in line with revision to accounting standards: Yes

   ② Other changes: None

   ③ Changes in accounting estimates: None

   ④ Restatement: None

2. 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 shares
② Number of treasury share	September 30, 2021	38,073,224 shares
	June 30, 2021	18,924 shares
③ 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, 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 November 10, 2021. Presentation materials for the briefing will be available on the Company's website.

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Consolidated Quarterly Balance Sheets

		(Millions of yen)
	As of June 30,	As of September 30,
	2021	2021
	Amount	Amount
Assets
Current assets
Cash and deposits	¥157,522	¥104,705
Notes and accounts receivables-trade	21,074	22,315
Accounts receivables - installment	65,491	62,819
Operating loans	7,658	7,660
Merchandise and finished goods	203,416	203,490
Prepaid expenses	7,671	8,077
Deposits paid	4,364	4,189
Other	29,577	29,181
Allowance for doubtful accounts	(1,276)	(1,418)
Total current assets
495,496	441,018
Non-current assets
Property, plant and equipment
Buildings and structures, net	261,481	261,855
Tools, furniture and fixtures, net	32,848	33,355
Lands	317,402	317,410
Right of use assets, net	22,672	22,751
Other, net	9,347	11,567
Total property, plant and equipment
643,750	646,938
Intangible assets
Goodwill	56,304	55,830
Other	23,255	23,461
Total intangible assets	79,559	79,291
Investments and other assets
Investment securities	29,082	29,629
Long-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	23,713	22,128
Lease and guarantee deposits	73,882	73,489
Other	3,802	3,833
Allowance for doubtful accounts	(2,120)	(2,164)
Total investments and other assets
151,447	149,960
Total non-current assets
874,756	876,189
Total assets
¥1,370,252	¥1,317,207

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		(Millions of yen)
	As of June 30,	As of September 30,
	2021	2021
	Amount	Amount
Liabilities
Current liabilities
Notes and accounts payables - trade	¥149,984	¥153,489
Short-term loan payables	1,500	70,000
Current portion of long-term loan payables	33,613	31,382
Current portion of bonds	22,566	21,514
Payables under fluidity lease receivables	191	－
Accounts payables - other	46,508	42,721
Lease obligations	1,380	1,420
Accrued expenses	25,550	22,577
Deposits received	28,000	14,115
Income taxes payables	11,299	5,059
Provision for point card certificates	5,747	2,294
Contract liabilities	－	11,138
Other	27,211	16,442
Total current liabilities	353,550	392,151
Non-current liabilities
Bond payables	203,976	203,200
Long-term loan payables	271,507	259,072
Lease obligations	21,087	21,247
Asset retirement obligations	24,165	24,593
Negative goodwill	7	－
Other	57,195	55,240
Total non-current liabilities	577,937	563,352
Total liabilities	931,487	955,503
Net assets
Shareholders' equity
Share capital	23,153	23,176
Capital surplus	17,121	17,145
Retained earnings	376,268	380,443
Treasury shares	(15)	(80,956)
Total shareholders' equity
416,527	339,808
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	1,165	1,380
Foreign currency translation adjustment	770	(95)
Remeasurements of defined benefit plans	199	191
Total accumulated other comprehensive income	2,133	1,476
Share acquisition rights	216	216
Non-controlling interests	19,888	20,204
Total net assets	438,765	361,704
Total liabilities and net assets	¥1,370,252	¥1,317,207

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Consolidated Quarterly Statements of Income

		(Millions of yen)
	Three months ended	Three months ended
	September 30, 2020	September 30, 2021
	Amount	Amount
Net sales	¥418,474	¥445,474
Cost of sales	295,019	317,997
Gross profit
123,455	127,477
Selling, general and administrative expenses	100,251	111,402
Operating income
23,204	16,075
Non-operating income
Interest and dividend income	165	514
Amortization of negative goodwill	22	7
Share of profit of entities accounted for using equity method	111	175
Foreign exchange gains	－	615
Other	1,387	1,140
Total non-operating income	1,685	2,451
Non-operating expenses
Interest expenses paid on loans and bonds	1,277	1,937
Foreign exchange losses	671	－
Cost of claim's liquidation	23	1
Other	112	141
Total non-operating expenses	2,083	2,079
Ordinary income	22,806	16,447
Extraordinary income
Gain on sales of non-current assets	94	2
Gain on insurance claims	822	－
Other	53	－
Total extraordinary income	969	2
Extraordinary losses
Loss on retirement of non-current assets	129	142
Loss on closing of stores	202	20
Loss on disaster	8	6
Other	47	11
Total extraordinary losses	386	178
Profit before income taxes	23,389	16,271
Income taxes - current	4,568	3,239
Income taxes - deferred	1,966	396
Total income taxes	6,534	3,635
Profit	16,855	12,636
Profit attributable to non-controlling interests	385	216
Profit attributable to owners of parent	¥16,470	¥12,420

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