Pan Pacific International Holdings Corporation · TSE:7532

Pan Pacific International — FY2023 Earnings Presentation

33 slides from Pan Pacific International's earnings presentation, Aug 16, 2023

  1. Slide 1: Results for FY 2023

    Results for FY 2023 August 16, 2023 Pan Pacific International Holdings Corporation

  2. Slide 2: Index and explanatory notes

    INDEX Fiscal year ended June 30, 2023 １ Overview of financial results Fiscal year ending June 30, 2024 2 Strategies and initiatives 3 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

  3. Slide 3: Executive Summary (1/2)

    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 ye

  4. Slide 4: Executive Summary (2/2)

    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 th

  5. Slide 5: Overview of Financial Results

    Fiscal year ended June 30, 2023 Overview of Financial Results 4

  6. Slide 6: Financial Results for the Year Ended June 30, 2023

    Financial Results for the Year Ended June 30, 2023 【Period：July 1, 2022～June 30, 2023】 (Unit：Billion Yen) FY2022 FY2023 FY2023 Forecast *1 Amount Amount Amount (Ratio) Change YoY (Ratio) Progress (Ratio) Net sales 1,831.3 1,936.8 +105.5 +5.8％ 1,920 100.9% Gross profit 543.4 600.4 +57 +10.5％ 587.5 10

  7. Slide 7: Evolution into a "profitable retailer" through management reform

    Evolution into a "profitable retailer" through management reform  Over the past several years, sales and profits have continued to grow at a high rate, and we have achieved an operating margin of over 5% for the first time in five years by reforming its earnings structure even in an inflationary en

  8. Slide 8: Discount Store Business

    Discount Store Business Sales increased to 1.17 trillion yen (+76.7 billion yen YoY) and FY2023 Cumulative Change in Sales operating profit to 55.6 billion yen (+19.3 billion yen YoY), driving a <Billion Yen> significant increase in sales and profit to drive consolidated results.  SSS were strong a

  9. Slide 9: Discount Store Business: Progress of initiatives

    Discount Store Business：Progress of initiatives  The sales composition ratio of PB/OEM was 17.3% for the full year (up 3.1% YoY), about 0.5% above the initial target, thanks to increased brand recognition and the development and sale of products that meet demand. ▶ A popular product ▶ DS business:

  10. Slide 10: Discount store business: New stores and conversion

    Discount store business：New stores and conversion MEGA Don Quijote UNY Ina（Nagano） Don Quijote Akabane Higashiguchi（Tokyo） （opened on June 6 ） （opened on June 30 ） This is the 62nd store to change its business format. The latest A test was conducted at the Akabane store for the purpose of MD package

  11. Slide 11: GMS Business

    GMS Business Promoted profit-oriented measures in light of the external FY2023 Cumulative Change in Sales environment. Operating profit increased significantly by 2.5 billion yen from the previous year (2.1 billion yen higher than the forecast) <Billion Yen> due to improved gross profit margin and c

  12. Slide 12: Overseas Business

    Overseas Business Due to the severe external environment and issues to be addressed, full-year operating profit declined. On the other hand, operating FY2023 Cumulative Change in Sales income in the Q4 was 0.5 billion yen higher than the previous year, <Billion Yen> and progress was as expected comp

  13. Slide 13: Status of major assets, liabilities and net assets

    Status of major assets, liabilities and net assets (Unit: Billion Yen) June 2022 June 2023 (Unit: Billion Yen) Actual *2 Actual Change June 2022*2 June 2023 Current Assets 486.5 551.8 65.3 Actual Actual Change Cash and Deposits 176.8 242.1 65.3 Total Current 326.4 368.4 42 Liabilities Account receiv

  14. Slide 14: Status of cash flows and capital expenditure

    Status of cash flows and capital expenditure ▶ Cash Flow Status (Unit：Billion yen) FY 2022 FY 2023 ＜ Operating CF：+138.0 bil. yen＞ Actual Actual Change ▶ Positive items: 100.7 billion yen in income before income tax, 42.3 billion yen in Balance at Beginning of depreciation and amortization, and 14.3

  15. Slide 15: Shareholder Returns

    Shareholder Returns Dividends Shareholder Benefits  For FY2023, we plan to increase the dividend from the initial forecast of 18 yen per share Shareholders who are listed or recorded in the shareholders' register as of the last day of to 20 yen per share, marking the 20th consecutive year of divide

  16. Slide 16: Fiscal year ending June 30, 2024 targets and initiatives

    Fiscal year ending June 30, 2024 targets and initiatives 15

  17. Slide 17: Forecast of consolidated financial results for FY2024

    Forecast of consolidated financial results for FY2024  In the 2nd year of Visionary 2025, we target sales of 2,062.1 billion yen and an operating profit of 111 billion yen for FY2024, aiming to maintain the operating profit margin of over 5% and to increase sales and profits for 35 consecutive year

  18. Slide 18: Assumptions of the Forecasts for FY2024

    Assumptions of the Forecasts for FY2024 Sales ■Sales  New store opening <Billion yen> Domestic：25 stores+α, Oversea：12 stores  SSS DS business：104.0％ YoY（Tax-free sales target＝over 80 billion yen） GMS business：101.0％ YoY ■Gross profit margin：31.4％（+0.4％）  DS business：26.5％ (+0.1％) ：The PB/OEM sal

  19. Slide 19: Initiatives for FY2024

    Initiatives for FY2024  In addition to further earning tax-free sales (sales target of over 80 billion yen), strengthen SSS by aggressively introducing merchandise that attracts customers.  Gross profit margin is expected to be +0.1% as a result of strategically developing merchandise that attract

  20. Slide 20: Initiatives for FY2024

    Initiatives for FY2024  In response to declining demand for eating in and increasing opportunities to go out, we will expand non-food products, mainly cosmetics, and strengthen products that meet the tax-free demand of tourists. We will also continue to improve gross profit margin by strengthening

  21. Slide 21: Flash report of domestic DS/GMS business in July

    Flash report of domestic DS/GMS business in July  In the domestic retail business, both the DS and GMS businesses performed well throughout the month due to growth in seasonal products and outing demand. Overall customer numbers for the domestic retail business exceeded the previous year's levels.

  22. Slide 22: ESG initiatives (1/2)

    （Reference ①） ESG initiatives （1/2）  Continue to promote and strengthen ESG initiatives to realize a sustainable society and company  Aim to receive high scores from external evaluation organizations in order to ensure objectivity in the promotion of ESG initiatives. Medium-term target Progress（FY

  23. Slide 23: ESG initiatives (2/2)

    （Reference①）ESG initiatives（2/2） Evaluations from external evaluation organizations Initiatives for FY2024 A leading ESG index in which Japanese Implementation of off-site CPPA companies that practice excellent ESG Recognizing the sourcing of renewable energy as an important initiatives are selected

  24. Slide 24: Trends in various management indexes

    （Reference②）Trends in various management indexes ROE ROE Net D/E Ratio・ Capex to operating CF ratio 18% 17% 120% 1400 16% （Billion yen） 15% 14% 1200 100% 13% 12% 1000 FY2022 FY2023 FY2024 FY2025 （Forecast） （Forecast） 80% • The rate will be stable at around 14-15% despite the large 800 foreign exchan

  25. Slide 25: Appendix

    Appendix 24

  26. Slide 26: Financial Results for Q4

    Financial Results for Q4 [Period: April 1, 2023 – June 30, 2023] (Unit: Billion yen) Previous Q4 Results Current Q4 Results *1 Actual Ratio Actual Ratio Change YoY Net sales 460.8 100.0％ 479.6 100.0％ +18.8 104.1％ Gross profit 143.1 31.0％ 149.9 31.3％ +6.8 104.8％ SG&A 117.5 25.5％ 126.4 26.3％ +8.9 107.

  27. Slide 27: Q4 results by business segment

    Q4 results by business segment ▶ Q4 [Period: April 1, 2023 – June 30, 2023] (Unit : Billion yen) North America DS business GMS business Asia business Others・Adjustments business FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 Change Change Change Change Change Q4 Q4 Q4 Q4 Q4 Q4

  28. Slide 28: Overview of results by consolidated businesses

    Overview of results by consolidated businesses [Period: July 1, 2022 – June 30, 2023] (Unit：Billion yen) FY2022 FY2023 Amount Ratio Amount Ratio YoY Discount store business 1060.4 57.9% 1133.3 58.5% 106.9% Home electrical appliances 85.2 4.7% 82.4 4.3% 96.8% Miscellaneous household goods 263.1 14.4%

  29. Slide 29: Breakdown of SG&A

    Breakdown of SG&A [Period: April 1, 2023 – June 30, 2023] (Unit：Billion yen) Q4 FY2022 Q4 FY2023 Amount Ratio Amount Ratio YoY SG&A 117.5 25.5% 126.4 26.3% 107.6% Salaries and allowances 44.8 9.7% 47.1 9.8% 105.1% Rent 14.2 3.1% 15.1 3.2% 106.9% Fees and commissions 15.9 3.4% 14.4 3.0% 90.9% Depreci

  30. Slide 30: New Store/Renovation

    New Store/Renovation Q1 Q2 Q3 Q4 Business Format Result Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Sunny-Side- Kirakira Donki Arao Yonezawa Kyobashi Beppu Mall Kintetsu Kokura Pass'e (Kumamoto) (Yamagata) (Osaka) （Oita） （Fukuoka） （Aichi） Kyoto Chiba Satsuma Karasuma Kichijoji Port Town Sendai S

  31. Slide 31: Store network

    Store network Number of Domestic Retails Stores Number of Overseas Stores FY2023 FY2023 FY2021 FY2022 FY2021 FY2022 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Discount store business 444 468 470 476 475 486 North America Business 65 65 65 65 65 65 Don Quijote 226 237 238 244 243 250 California 37 37 37 37 37 37 MEGA D

  32. Slide 32: IR information

    IR information IR inquiries Pan Pacific International Holdings Corporation, IR Department 2-19-10 Aobadai, Meguro-ku, Tokyo, 153-0042 TEL: 03-5725-7588 FAX: 03-5725-7024 e-mail : ir@ppih.co.jp IR Calendar Announcement of Q1 results for the fiscal year ending June 2024 Date of announcement: November

  33. Slide 33: 2-19-10 Aobadai, Meguro-ku, Tokyo, 153-0042 TEL: 03-5725-7588 / FAX: 03-5725-7024 / e-mail: ir@ppih.co.jp https://ppi…

    2-19-10 Aobadai, Meguro-ku, Tokyo, 153-0042 TEL: 03-5725-7588 / FAX: 03-5725-7024 / e-mail: ir@ppih.co.jp https://ppih.co.jp/

Pan Pacific International Holdings — FY2023 Earnings Presentation on 6ix