Pan Pacific International Holdings Corporation · TSE:7532
Pan Pacific International — Q2 FY6/25 Earnings Presentation
25 slides from Pan Pacific International's earnings presentation, Feb 13, 2025
Slide 1: Q2 FY6/25 Results
Q2 FY6/25 Results February 13, 2025 Pan Pacific International Holdings Corporation
Slide 2: INDEX
INDEX １ Overview of Q2 FY6/25 results 2 Appendix Explanatory notes 1. The actual values presented in these materials are rounded to the nearest full unit. 2. The following abbreviations are used: Pan Pacific International Holdings (7532) as “PPIH", Don Quijote Co., Ltd. and its stores as “DQ", UNY C
Slide 3: Executive Summary
Executive Summary < Review of Q2 FY6/25 > Net sales reached 1.1286 tn yen (+81.0 bn yen/+7.7% YoY), and operating income increased to 89.7 bn yen (+14.2 bn yen/+18.9% YoY). Both H1 and Q2 achieved record-high sales and operating income. Operating income margin improved to 8.0% (+0.8pt YoY), driv
Slide 4: Full-year Forecast
Full-year Forecast The full-year forecast for operating income has been revised upward to 155 bn yen (initial targets +5 bn yen), ordinary profit to 150.8 bn yen (initial targets +15.4 bn yen), and profit attributable to owners of parent to 90 bn yen (initial targets +3.5 bn yen) Based on the pr
Slide 5: Overview of Q2 FY6/25 results
Overview of Q2 FY6/25 results 4
Slide 6: Earnings Summary for Q2 FY6/25
Earnings Summary for Q2 FY6/25 【Period: H1 (July 1, 2024 – December 31, 2024)】 (Unit: Bn yen) FY6/24 H1 FY6/25 H1 Results FY6/25 H1 Forecast Amount Amount Amount Change YoY Progress Sales ratio Sales ratio Sales ratio Net sales 1,047.6 1,128.6 +81.0 +7.7% 1120.4 100.7% ※1 331.0 363.9 353.6 Gross pro
Slide 7: Discount Store Business
Discount Store Business Sales revenue reached 724.9 bn yen (+64.4 bn yen YoY), and FY6/25 H1 Change in Sales operating income grew strongly to 58.5 bn yen (+13.7 bn yen YoY). Strategies are being advanced to achieve the first-ever (Bn yen) operating income of 100 bn yen by the DS store business alon
Slide 8: DS store business: Progress in customer acquisition, PB/OEM, and inbound strategies
DS store business: Progress in customer acquisition, PB/OEM, and inbound strategies Marketing initiatives targeting younger customers are being promoted. The number of majica members has surpassed 16 million. ▶ U24 Maji-wari (Initiative for Thanks to the effectiveness of member-exclusive prices,
Slide 9: UNY Business
UNY Business The shift in pricing strategy led to a decrease in Q1 FY6/25 H1 Change in Sales operating income to 6.3 bn yen (-0.9 bn yen YoY). However, (Bn yen) Q2 saw a turnaround to 12.3 bn yen (+0.3 bn yen YoY). Moving into H2, various initiatives will be intensified to attract more customers.
Slide 10: UNY business: Positive results observed for the non-food reform initiated in October 2024
UNY business: Positive results observed for the non-food reform initiated in October 2024 Reforms targeting a +10 bn yen in operating income by FY6/30 (vs. FY6/24) ▶ Chiyodabashi store - After renovation Commitment to competitive pricing for frequently purchased items aims to increase store visi
Slide 11: Overseas Business
Overseas Business The Asia business shifted from a decline to a growth trend and FY6/25 H1 Change in Sales1,2,3 is progressing in line with full-year targets. The North America business, however, has revised its full-year plan downward due (Bn yen) to unforeseen impacts. ■ Asia Operating income hi
Slide 12: Status of Major Assets, Liabilities and Net Assets
Status of Major Assets, Liabilities and Net Assets (Unit: Bn yen) (Unit: Bn yen) June 2024 December 2024 June 2024 December 2024 Actual Actual Change Actual Actual Change Current Assets 513.4 589.1 75.7 Current Liabilities 419.2 485.0 65.8 Cash and Deposits 172.7 202.9 30.2 Accounts Payable 197.2 24
Slide 13: Status of Cash Flows and Capital Expenditure
Status of Cash Flows and Capital Expenditure ▶ Status of cash flows (Unit: Bn yen) ＜Operating CF: +92.6 bn yen＞ FY6/24 FY6/25 ▶ Cash in factors: H1 H1 85.4 bn yen for pre-tax net profit 49.9 bn yen for changes in trade accounts payable Actual Actual Change 24.0 bn yen for depreciation Balance at Beg
Slide 14: Status of Shares
Status of Shares Dividends1,2 Shareholder benefits The dividend for FY6/25 H1 is expected to be 9 yen (+4 yen YoY) and 34 yen for the full year (+4 yen Shareholders listed in the register as of the YoY), marking the 22nd consecutive year of dividend growth last day of June or December, holding at
Slide 15: Advancing Sustainable Management 1【Topics】
Advancing Sustainable Management 1【Topics】 Enhance PPIH's business sustainability by balancing the resolution of environmental and social issues with business growth Leverage the objective evaluations of ESG rating agencies to further enhance our ratings and achieve index inclusion Major sustain
Slide 16: Advancing Sustainable Management 2【Key Figures】
Advancing Sustainable Management 2【Key Figures】 FY6/30 Goals Unit FY6/22 FY6/23 FY6/24 Environment CO₂ emissions CO₂ emissions Scope 1 & 2 t-CO₂ 522,868 512,505 510,253 Reduce CO₂ emissions (Scope 1 and 2) Scope 1 & 2 CO₂ emissions reduction rate from stores by 50% against FY6/13 % 16.0 20.3 26.0 l
Slide 17: (Reference) January flash report for domestic DS and UNY
(Reference) January flash report for domestic DS and UNY In the domestic retail businesses, both DS and UNY saw an increase in sales and customer numbers YoY. The New Year's sales and lucky bags, along with TV commercials and exclusive campaigns for majica app members, attracted many customers to ou
Slide 18: Appendix
Appendix 17
Slide 19: Results by Business Segment
Results by Business Segment 【Period: Q2 alone (October 1, 2024 – December 31, 2024)】 (Unit : Bn yen) DS UNY Asia2 North America1,3 Others/Adjustments Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Change Change Change Change Change FY6/24 FY6/25 FY6/24 FY6/25 FY6/24 FY6/25 FY6/24 FY6/25 FY6/24 FY6/25 Net sales 336.0
Slide 20: Overview of Results by Consolidated Business
Overview of Results by Consolidated Business 【Period: H1 (July 1, 2024 – December 31, 2024)】 (Unit: Bn yen) FY6/24 H1 FY6/25 H1 Amount Ratio Amount Ratio YoY Domestic DS 638.3 60.9% 700.0 62.0% +9.7% Home electrical appliances 45.9 4.4% 47.9 4.2% +4.4% Miscellaneous household goods 170.4 16.3% 195.4
Slide 21: Breakdown of SG&A
Breakdown of SG&A 【Period: Q2 alone (October 1, 2024 – December 31, 2024)】 (Unit : Bn yen) Q2 alone FY6/24 Q2 alone FY6/25 Amount Ratio Amount Ratio YoY SG&A 130.2 24.2% 138.4 24.0% +6.4% Salaries and allowances 48.8 9.1% 50.8 8.8% +4.2% Rent 15.5 2.9% 15.7 2.7% +1.1% Commission paid 16.1 3.0% 17.4
Slide 22: FY6/25 New Store Plan
FY6/25 New Store Plan Q1 Q2 Q3 Q4 Business Format Full-year Forecast Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Chofu Komatsushima Tsurumi Sakudaira Shimizu Ekimae Lupia Nishiguchi 2 Stores 2 Stores 6 Stores (Nagano) (Shizuoka) (Tokyo) (Tokushima) (Kanagawa) New store Discount Store Tanashi Ko
Slide 23: Store Network
Store Network Number of Domestic Retail Stores Number of Overseas Stores FY6/25 FY6/25 FY6/23 FY6/24 FY6/23 FY6/24 Q1 Q2 Q1 Q2 Discount Store business 486 501 503 505 North America 65 65 66 66 Don Quijote 250 262 264 267 California 37 37 37 37 MEGA Don Quijote1 140 143 143 143 Hawaii 28 28 28 28 (ME
Slide 24: IR Information
IR Information IR Inquiries IR Division, Pan Pacific International Holdings Corporation Dogenzaka-dori 8F 2-25-12 Dogenzaka, Shibuya-ku, Tokyo 150-0043 TEL: 03-6416-0418 / FAX: 03-6416-0994 e-mail : ir@ppih.co.jp IR Calendar Announcement of Q3 earnings for FY6/25 (scheduled) Date of announcement: Ma
Slide 25: Dogenzaka-dori 8F 2-25-12 Dogenzaka, Shibuya-ku, Tokyo 150-0043 TEL: 03-6416-0418 / FAX: 03-6416-0994 / e-mail:
Dogenzaka-dori 8F 2-25-12 Dogenzaka, Shibuya-ku, Tokyo 150-0043 TEL: 03-6416-0418 / FAX: 03-6416-0994 / e-mail: ir@ppih.co.jp https://ppih.co.jp/
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