Pan Pacific International Holdings Corporation · TSE:7532
Pan Pacific International — Q2 FY2023 Earnings Presentation
31 slides from Pan Pacific International's earnings presentation, Feb 8, 2023
Slide 1: Q2 Results for FY 2023
Q2 Results for FY 2023 February 8, 2023 Pan Pacific International Holdings Corporation
Slide 2: Explanatory notes for these materials
Explanatory notes for these materials 1. The monetary values presented in these materials are rounded off 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.,
Slide 3: INDEX
INDEX Fiscal year ending June 2023 １ Overview of Q2 results Fiscal year ending June 2023 2 Initiatives for Q3 and onwards 3 Appendix 2
Slide 4: Overview of Q2 results
Fiscal year ending June 2023 Overview of Q2 results 3
Slide 5: Financial Results for Q2
Financial Results for Q2 Net sales increased by 60.8 billion yen and operating profit rose by 13.8 billion yen from the previous 1H. Both sales and operating profit reached record highs for 1H and Q2. [Period: July 1, 2022 –December 31, 2022] (Unit: 100 Million yen) Result of 1H (6 months ended on
Slide 6: Discount Store Business
Discount Store Business The increase in SSS and the improvement of GPM continued. FY2023 1H Change in Sales Strong performance in 1H, sales up by 34.9 billion yen and <100 Million Yen> operating profit up by 13.2 billion yen YoY. SSS rose to 104.0% (and to 102.5% excluding tax-free sales) YoY due
Slide 7: DS Business: Strengthening of PB/OEM
DS Business: Strengthening of PB/OEM PB/OEM sales composition ratio in 1H increased further to 16.8% (+2.9% YoY). Sales reached a record high in December, boosted by the influence of media exposure. ▼ Examples of PB/OEM products sold well in Q2 [Initiatives in Q2] Sales composition ratio of PB/O
Slide 8: DS Business: Progress in store openings/renovations
DS Business: Progress in store openings/renovations Don Quijote Yonezawa (Yamagata Pref.) Don Quijote Nakasu (Fukuoka Pref.) (Opened on October 7, 2022) （Reopened on November 11, 2022) Aggressively proceeded with narrowing down of SKUs Expanded the PB section by increasing the 1st floor and installa
Slide 9: GMS Business
GMS Business GPM improved continuously from Q1, resulting in a FY2023 1H Change in Sales 2.2 billion yen increase YoY in operating profit. <100 Million Yen> Progressing well towards the full-year performance target in line with the forecast. SSS in 1H landed at 98.1% (from 97.5% in Q1 to 98.6% in
Slide 10: Overseas Business
Overseas Business FY2023 1H Change in Sales <Progress of new store openings> <100 Million Yen> DON DON DONKI Whampoa Garden (HK) (Opened on August 17, 2022) First in Hong Kong to Introduce Wagyu Kushi, which have been successful in Taiwan and Malaysia, aiming to further penetrate Japanese food cul
Slide 11: Overseas Business: Progress in 1H
Overseas Business: Progress in 1H Overseas business fell short of forecast due to the heavy impact of COVID-19. Particularly in countries and regions with a large number of downtown urban stores such as Hong Kong, Singapore, Macau, and Hawaii were negatively impacted by the prolonged restrictions.
Slide 12: Earnings Forecast for FY2023
Earnings Forecast for FY2023 The full-year forecast of 94 billion yen in operating profit remains unchanged. The breakdown by business segment was revised based on progress in each business up to 1H. ＜ Forecasts by Business Segment (YoY) ＞ FY 2023 Earnings Forecast ■DS Business: Initial target +
Slide 13: Status of major assets, liabilities and net assets
Status of major assets, liabilities and net assets (Unit: 100 Million yen) (Unit: 100 Million yen) June 2022 December2022 June 2022 December2022 *2 Actual Actual Change Actual Actual Change Current Assets 4,865 5,587 722 Total Current 3,264 4,094 830 Liabilities Cash and Deposits 1,768 2,089 321 Acc
Slide 14: Status of cash flows and capital expenditure
Status of cash flows and capital expenditure ▶ Cash Flow Status (Unit: 100 Million yen) ＜ Operating CF：+103.2 bil. yen＞ FY2022 1H FY2023 1H ▶ Positive items: 56.1 billion yen in income before income tax, 20.7 billion yen in depreciation and amortization, and increase of 56.9 billion yen in Actual Ac
Slide 15: Status of shares
Status of shares Dividends Dividends( yen) Payout Ratio (%) 20.0 20.0 Payout ratio Annual dividends 年間配当(左軸) 配当性向(右軸) Dividends for FY2023 is expected (left axis) (right axis) to be 18.0 yen (+1.0 yen YoY) 15.0 15.0 It is expected to increase for 10.0 10.0 20 consecutive terms 17.0 18.0 16.0 15.
Slide 16: Initiatives for Q3 and onwards
Fiscal year ending June 2023 Initiatives for Q3 and onwards 15
Slide 17: Initiatives for the 2H and onward
Initiatives for the 2H and onward Continue to strengthen PB/OEM. From spring/summer, further promote PB of seasonal home appliances and apparel. DS business With the recovery of inbound sales, review store layouts and personnel assignments, particularly at station front stores, to prepare for fu
Slide 18: (Reference) Flash report of domestic DS/GMS business in January
(Reference) Flash report of domestic DS/GMS business in January YoY same-store sales in January were 104.2% in DS business and 99.0% in GMS business, maintaining the Q2 trend. Due to disaster preparation and last-minute demand, both businesses saw growth in food products despite the high hurdles
Slide 19: DS Business: Initiatives to address the forthcoming recovery in inbound demand
DS Business: Initiatives to address the forthcoming recovery in inbound demand Based on the recovery in 1H, the forecast for tax-free sales for FY 2023 has been revised upward to 24.0 billion yen. Aim to maximize sales in 2H by establishing a system to respond to a further recovery in demand. Stat
Slide 20: Overseas Business: Outlook for the 2H and onward
Overseas Business：Outlook for the 2H and onward Asia Business North America Business Asia business, which started in December 2017, Hawaii business will begin improving pricing accuracy continued opening stores during COVID-19 and reached in February to improve sales and GPM. a store count of 33
Slide 21: "CV+D+A" Update through Evolution of "Customer Touchpoint"
"CV+D+A“ Update through Evolution of “Customer Touchpoint” The number of majica app members reached 11 million and credit card members 3.1 million, developing a membership base. Unlike the point strategy of platformers, we will update our own unique "CV+D+A" that combines store/product and digit
Slide 22: Top-up/Payment function
Finance business: basic strategy for payment and marketing Expand the number of customers using the in-house payment system to increase financial revenue opportunities and reduce costs (from approx. 40% to over 50%). Improve the payment/membership ratio to deepen understanding of customers and i
Slide 23: Exclusive measure for majica members at the pre-opening of the Beppu store
Exclusive measure for majica members at the pre-opening of the Beppu store A pre-opening for majica members only was held at Beppu. In addition to acquiring members, strengthen incentives and guidance for "top-up," which has become a hurdle in promoting in-house payment. By implementing CRM me
Slide 24: Appendix
Appendix 23
Slide 25: Q2 and 1H results by businesses
Q2 and 1H results by businesses [Q2 Period: October 1, 2022～ December 31, 2022] (Unit: 100 Million yen) North America DS business GMS business Asia business Others・Adjustments business Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Change Change Change Change Change FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 F
Slide 26: 1H results by consolidated businesses
1H results by consolidated businesses [Period： July 1, 2022 –December 31, 2022] (Unit: 100 Million yen) 1H FY2022 1H FY2023 Actual Ratio Actual Ratio YoY Domestic DS Business 5,324 58.0% 5,672 58.0% 106.5% Home electrical appliances 434 4.7% 424 4.3% 97.8% Miscellaneous household goods 1,297 14.1% 1
Slide 27: Breakdown of SG&A
Breakdown of SG&A [Period: October 1, 2022～ December 31, 2022] (Unit: 100 Million yen) Q2 FY2022 Q2 FY2023 Actual Ratio Actual Ratio YoY SG&A 1,128 23.9% 1,246 24.7% 110.4% Salaries and allowances 436 9.2% 464 9.2% 106.3% Rent 135 2.9% 148 2.9% 109.5% Commission paid 151 3.2% 162 3.2% 107.2% Depreci
Slide 28: Store openings/Renovations
Store openings/Renovations Q1 Q2 Q3 Q4 Business Format Full Year Target Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Arao Yonezawa Kyobashi Beppu 2 stores 1 store (Kumamoto) (Yamagata) (Osaka) （Oita） Kyoto Discount Store Karasuma Kichijoji DQ Shichijo （Tokyo） (Kyoto) Susukino (Hokkaido) New：9 sto
Slide 29: Store network
Store network Number of Domestic Retails Stores Number of Overseas Stores FY2023 FY2023 FY2021 FY2022 FY2021 FY2022 Q1 Q2 Q1 Q2 Discount store business 444 468 470 476 North America Business 65 65 65 65 Don Quijote 226 237 238 244 California 37 37 37 37 Hawaii 28 28 28 28 MEGA Don Quijote *1 139 140
Slide 30: 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 Q3 results for the fiscal year ending June 2023 Date of announcement: May 9, 20
Slide 31: 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/
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