Pan Pacific International : Summary Report of Consolidated Financial Results For the Third Quarter Ended March 31, 2021

Summary Report of Consolidated Financial Results

For the Third Quarter Ended March 31, 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 third quarter of fiscal 2021 (From July 1, 2020 to March 31, 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
Nine Months Ended	1,268,196	0.2	66,888	12.6	67,547	14.7	45,234	20.0
March 31, 2021
Nine Months Ended	1,265,759	37.7	59,415	－	58,914	－	37,711	－
March 31, 2020
(Note) Comprehensive	income: 44,669 million	yen [17.6%] (FY 2021.6	3Q), 37,986 million yen [－%] (FY 2020.6 3Q)
	Net Income	Net Income
	Per Share	Per Share-fully
	(Yen)	diluted (Yen)
Nine Months Ended	71.34		71.15
March 31, 2021
Nine Months Ended	59.52		59.36
March 31, 2020

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

The year-on-year percentage change in the third quarter of 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
	to Total Assets (%)
As of March 31, 2021	1,323,312	425,459	30.7
June 30, 2020	1,297,231	388,999	28.7

(Reference) Equity: 405,845 million yen (as of March 31, 2021), 371,839 million yen (as of June 30, 2020)

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

2. Dividends

Yen

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

－

12.00

15.00

2020

Year Ending June 30,

－

3.00

－

2021

Year Ending June 30,

13.00

16.00

2021 (Forecast)

(Note) Revision to the dividend forecast in the third quarter of fiscal 2021: None

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3. Consolidated Business Forecast：For the year ending June 30, 2021 (From July 1, 2020 to June 30, 2021)

(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

Year Ending	1,700,000	1.1	80,000	6.1	79,000	5.9	53,000	6.2	83.58
June 30, 2021

(Note) Revision to the business forecast in the third quarter of fiscal 2021: None

(Note) The year-on-year percentage change for the whole financial year have been revised retroactively due to changes in accounting policy, so they are shown in comparison with the figures for the previous year after the retroactive adjustment.

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: 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)	March 31, 2021	634,197,040 shares
	June 30, 2020	633,929,040 shares
② Number of treasury share	March 31, 2021	18,924 shares
	June 30, 2020	18,924 shares
③ Average number of outstanding shares during the period	March 31, 2021	634,054,371 shares
	March 31, 2020	633,574,015 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 May 11, 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 March 31,
	2020	2021
	Amount	Amount
Assets
Current assets		￥202,487
Cash and deposits	¥179,785
Notes and accounts receivables-trade	18,378	21,450
Accounts receivables - installment	68,293	66,913
Operating loans	8,076	7,565
Merchandise and finished goods	187,775	195,583
Prepaid expenses	6,772	6,530
Deposits paid	4,377	4,646
Other	21,572	16,474
Allowance for doubtful accounts	(890)	(1,083)
Total current assets
494,138	520,565
Non-current assets
Property, plant and equipment
Buildings and structures, net	264,035	264,126
Tools, furniture and fixtures, net	29,898	30,468
Lands	325,499	323,337
Other, net	3,278	5,705
Total property, plant and equipment
622,710	623,635
Intangible assets
Goodwill	15,935	14,571
Other	20,948	21,799
Total intangible assets	36,883	36,370
Investments and other assets
Investment securities	17,515	23,319
Long-term loan receivables	1,269	2,010
Long-term prepaid expenses	5,729	5,319
Retirement benefit assets	16,236	16,445
Deferred tax assets	23,150	20,089
Lease and guarantee deposits	78,624	74,527
Other	3,178	3,152
Allowance for doubtful accounts	(2,201)	(2,121)
Total investments and other assets	143,500	142,741
Total non-current assets	803,093	802,747
Total assets	¥1,297,231	¥1,323,312

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	(Millions of yen)
As of June 30,	As of March 31,
2020	2021
Amount	Amount

Liabilities

Current liabilities

Notes and accounts payables - trade Short-term loan payables

Current portion of long-term loan payables Current portion of bonds

Payables under securitization of lease receivables Accounts payables - other

Accrued expenses Deposits received Income taxes payables Provision for point card certificates Other

Total current liabilities

Non-current liabilities

Bond payables

Long-term loan payables

Long-term payables under securitization of lease receivables

Asset retirement obligations

Negative goodwill

Other

Total non-current liabilities

Total liabilities

Net assets

Shareholders' equity

Share capital Capital surplus Retained earnings Treasury shares

Total shareholders' equity Accumulated other comprehensive income

Valuation difference on available-for-sale securities Foreign currency translation adjustment Remeasurements of defined benefit plans

Total accumulated other comprehensive income Share acquisition rights

Non-controlling interests Total net assets

Total liabilities and net assets

¥148,226	￥148,778
－	1,500
13,201	33,646
11,916	2,566
4,512	632
53,481	47,622
22,588	21,250
16,806	15,962
10,969	8,944
6,924	5,735
23,604	24,924
312,227	311,559
226,542	223,976
276,191	268,380
191	－
23,300	23,893
94	29
69,687	70,015
596,005	586,294
908,232	897,853
23,008	23,133
16,977	17,102
332,263	367,988
(15)	(15)
372,233	408,208
529	951
(865)	(3,330)
(58)	16
(394)	(2,363)
218	216
16,942	19,398
388,999	425,459
¥1,297,231	¥1,323,312

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Consolidated Quarterly Statements of Income

		(Millions of yen)
	Nine months ended	Nine months ended
	March 31, 2020	March 31, 2021
	Amount	Amount
Net sales	￥1,265,759	￥1,268,196
Cost of sales	902,120	898,252
Gross profit
363,639	369,944
Selling, general and administrative expenses	304,224	303,056
Operating income	59,415	66,888
Non-operating income
Interest and dividend income	491	423
Amortization of negative goodwill	65	65
Share of profit of entities accounted for using equity method	235	196
Other	3,244	4,161
Total non-operating income	4,035	4,845
Non-operating expenses
Interest expenses paid on loans and bonds	3,855	3,767
Cost of claim's liquidation	132	46
Other	549	374
Total non-operating expenses	4,536	4,186
Ordinary income	58,914	67,547
Extraordinary income
Gain on sales of non-current assets	667	96
Gain on bargain purchase	241	－
Gain on sale of businesses	494	－
Gain on reversal of provision for loss on store closings	268	－
Gain on reversal of share acquisition rights	220	0
Gain on insurance claims	－	1,227
Other	428	75
Total extraordinary income	2,318	1,398
Extraordinary losses
Impairment loss	1,533	－
Loss on retirement of non-current assets	2,869	649
Loss on closing of stores	1,085	370
Loss on disaster	192	48
Other	278	63
Total extraordinary losses	5,957	1,129
Profit before income taxes	55,275	67,815
Income taxes - current	15,477	16,596
Income taxes - deferred	1,813	4,799
Total income taxes	17,290	21,395
Profit	37,985	46,420
Profit attributable to non-controlling interests	274	1,186
Profit attributable to owners of parent	￥37,711	￥45,234

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