Pan Pacific International Holdings Corporation · TSE:7532

Pan Pacific International — Q3 FY2020 Earnings Presentation

19 slides from Pan Pacific International's earnings presentation, May 8, 2020

  1. Slide 1: Q3 Results for FY 2020 Earnings Results

    Pan Pacific International Holdings Corporation Q3 Results for FY 2020 Earnings Results July 1, 2019 – March 31, 2020 May 8, 2020

  2. Slide 2: Q3 results at a glance

    Q3 results at a glance PPIH delivered the highest Q3 sales and profits ! Sales Growth Operating Profit ＲＯＥ 37.7％ increase 60.4 billion yen 15.0％ Pursuing PPIH mission Record high OP ROE over 15.0％ as a social infrastructure for the first nine months (Annualized) Rapid Change in Stable Domestic Sales

  3. Slide 3: Annual performance trends

    Annual performance trends (JPY bn) (JPY bn) OP / # of stores Sales 800 16000 Sales 4Q 700 14000 3Q 2Q 600 12000 1Q OP 500 10000 # of stores 400 8000 300 6000 200 4000 100 2000 0 0 1989 1995 2000 2005 2010 2015 2020 *PPIH has been renewing sales and operating profit growth record over the past 30 con

  4. Slide 4: Earnings summary

    Earnings summary Consolidated 9 months to March 2020 9 months to March 2019 (Millions of yen) Actual Share YoY Actual Share Net sales 1,265,759 100.0% 137.7% 918,990 100.0% Gross profit 364,643 28.8% 144.6% 252,117 27.4% SG&A 304,224 24.0% 147.9% 205,705 22.4% Salary allowance 108,160 8.5% 143.2% 75

  5. Slide 5: Earnings summary (comment)

    Earnings summary (comment) PPIH committed to “Customer matters the most” principle to execute business strategies by localizing store operations to differentiate from peers. z Consumption environment drastically changed. Daily necessities delivered stable growth, however, various situations bipolari

  6. Slide 6: Sales breakdown by product category

    Sales breakdown by product category Consolidated 9 months to March 2020 9 months to March 2019 (Millions of yen) Actual Share YoY Actual Share Home electrical appliances 64,208 5.1% 103.8% 61,886 6.7% Miscellaneous household goods 181,996 14.4% 105.7% 172,163 18.7% Foods 308,024 24.3% 119.6% 257,625

  7. Slide 7: Sales breakdown by product category

    Sales breakdown by product category POSA cards took the lead. Household appliance such as air purifiers as well as Home electrical appliances batteries and light bulbs were good. Daily necessities such as detergents and bath products contributed to sales. Miscellaneous household goods Consumer needs

  8. Slide 8: Balance sheet

    Balance sheet (Millions of yen) (Millions of yen) As of March 31, Change from As of March 31, Change from Consolidated 2020 June 30, 2019 Consolidated 2020 June 30, 2019 Total current assets 464,871 (31,534) Total current liabilities 311,406 (30,368) Cash and deposits 149,895 (22,778) Accounts payab

  9. Slide 9: Cash flows and capital expenditure

    Cash flows and capital expenditure (Millions of yen) Consolidated Cash Flows 9 months to March 9 months to March Change 2020 2019 Cash and equivalents at beginning of period 185,136 75,883 109,253 Cash flows from operating activities 51,361 93,087 (42,620) Cash flows from investing activities (23,20

  10. Slide 10: Sales and profit by business

    Sales and profit by business Sales, profit and loss by segment from Jul.1, 2019, to Mar.31, 2020 (Millions of yen) Consolidated Discount store GMS Tenant leasing Others Total Adjusted Consolidated Sales to external customers 831,684 378,266 44,530 11,279 1,265,759 - 1,265,759 Internal sales or trans

  11. Slide 11: Sales and profit by company

    Sales and profit by company Sales, profit and loss by segment from Jul.1, 2019, to Mar.31, 2020 (Millions of yen) Consolidated DQ Nagasakiya UD retail UNY Overseas JAM UCS Consolidated Sales 534,866 144,060 71,169 397,652 82,211 17,001 15,359 1,265,759 Operating profit 20,567 4,185 (4,367) 21,432 1,

  12. Slide 12: The number of stores

    The number of stores Breakdown by format (stores) FY2018 FY2019 FY2020-1Q FY2020-2Q FY2020-3Q Don Quijote 209 212 213 215 219 MEGA 43 44 44 44 44 New MEGA 80 88 89 89 89 MEGA DQ UNY ― 16 22 29 34 (Conversion Store) Apita / Piago ― 176 169 162 157 Picasso 23 21 22 22 22 Kyo-yasu-do 4 4 4 4 4 mini Pia

  13. Slide 13: The number of stores

    The number of stores (stores) Breakdown by company FY2018 FY2019 FY2020-1Q FY2020-2Q FY2020-3Q Don Quijote Co., Ltd. 313 322 325 327 331 (DQ,New MEGA and small format) Nagasakiya Co., Ltd. (MEGA) 43 44 44 44 44 UD Retail Co., Ltd. ― 16 22 29 34 (MEGA UNY;conversion store from UNY) UNY Co., Ltd. (Api

  14. Slide 14: Same-store sales (Don Quijote Co., Ltd.)

    Same-store sales (Don Quijote Co., Ltd.) 110.0% Spending Same Store Sales 105.0% 100.0% Traffic 95.0% 2018 Sept. 2019 Sept. 2020 March March March 2019 2020 Existing stores Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Sales (%) 99.7 101.6 104.1 102.1 102.2 100.9 95

  15. Slide 15: Same-store sales (UNY Co., Ltd.)

    Same-store sales (UNY Co., Ltd.) 110.0% UNY adjusted * UNY Non-adjusted * 105.0% UNY SSS 100.0% 95.0% GMS A SSS GMS B SSS 90.0% 2018 Sept. 2019 Sept. 2020 March March March 2019 2020 Existing stores Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. Sales (%) 100.2 99.1

  16. Slide 16: Earnings summary for Q3

    Earnings summary for Q3 Consolidated 3 months to March 2020 3 months to March 2019 (Millions of yen) Actual Share YoY Actual Share Net sales 406,970 100.0% 100.3% 405,575 100.0% Gross profit 116,850 28.7% 100.3% 116,506 28.7% SGA 101,544 25.0% 101.4% 100,111 24.7% Salary allowance 36,401 8.9% 101.4%

  17. Slide 17: Sales breakdown by product category for Q3

    Sales breakdown by product category for Q3 Consolidated 3 months to December 2020 3 months to December 2019 (Millions of yen) Actual Share YoY Actual Share Home electrical appliances 20,597 5.1% 100.0% 20,597 5.1% Miscellaneous household goods 58,188 14.3% 101.7% 57,201 14.1% Foods 105,806 26.0% 118

  18. Slide 18: Forecast for FY June 2020

    Forecast for FY June 2020 FY2020 Previously Announced FY2020 Full Year Revised Forecast Consolidated Forecast*¹ (Millions of yen) Plan Share YoY Plan Share Net sales 1,650,000 100.0% 124.2% 1,670,000 100.0% Gross profit 476,000 28.8% 128.5% 478,000 28.6% SGA 405,000 24.5% 131.7% 406,000 24.3% Operat

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Pan Pacific International Holdings — Q3 FY2020 Earnings Presentation on 6ix