Pan Pacific International Holdings Corporation · TSE:7532
Pan Pacific International — FY2021 Earnings Presentation
48 slides from Pan Pacific International's earnings presentation, Aug 17, 2021
Slide 1: Results for FY2021
41st Fiscal Year (Ending June 2021) Results for FY2021 August 17, 2021 Pan Pacific International Holdings Corporation
Slide 2: INDEX
INDEX Overview of results for the fiscal year ending June 2021 Earnings forecast for the fiscal year ending June 2022 Strategies and measures for the fiscal year ending June 2022 Appendix
Slide 3: 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 4: Overview of results for the fiscal year ending June 2021
Overview of results for the fiscal year ending June 2021
Slide 5: Earnings summary for the full year
Earnings summary for the full year ※ [Period: July 1, 2020 – June 30, 2021] (Unit: Millions of yen) * * 12 months to June 2020 12 months to June 2021 Full year forecast * Actual Share Actual Share Change YoY Progress Actual Share Net sales 1,681,947 100.0% 1,708,635 100.0% 26,688 101.6% 100.5% 1,700
Slide 6: Summary report of consolidated financial results
Summary report of consolidated financial results Although near the station stores in domestic discount store business struggled due to Covid -19 pandemic, the suburban ※ stores, GMS and overseas business covered the gap. As a result, net sales, operating profit and net profit for FY2021 reached thei
Slide 7: Summary of results by business (Domestic discount store business)
Summary of results by business (Domestic discount store business) Changes in sales for full year Changes in operating profit for full year <Million Yen> <Million Yen> FY 2020 Tax Free Near station Suburban DQ UDR Other FY 2021 FY 2020 DQ UDR Other FY 2021 (Same store) (Same store) (New store)(New st
Slide 8: Reference: Summary of results by company (Don Quijote)
Reference: Summary of results by company (Don Quijote) Changes in sales for full year Changes in operating profit for full year <Million Yen> <Million Yen> FY 2020 Tax Free Near station Suburban DQ Other FY 2021 FY 2020 Impact of Changes in Changes in FY 2021 (Same store) (Same store) (New store) sa
Slide 9: Discount store business: near the station stores
Discount store business: near the station stores Near the station stores struggled throughout the year due to the decline in inbound tourism and restrictions on human flow caused by the declaration of a state of emergency. We recognize that the evolution of the DS business itself is indispensable fo
Slide 10: Discount store business: Suburban stores
Discount store business: Suburban stores Despite capturing alternative demand for eating out and stay-at-home, sales at existing stores were slightly below the previous year‘s level (98.9% YoY) due to the reactionary drop from the special demand for hygiene products in the previous year. Stores with
Slide 11: Summary of results by business (GMS business)
Summary of results by business (GMS business) Changes in sales for full year Changes in operating profit for full year <Million Yen> <Million Yen> FY 2020 Decrease Existing New GMS FY 2021 FY 2020 Impact of Changes in Changes in FY 2021 due to store sales gross profit SG&A Store changes on margin cl
Slide 12: GMS business
GMS business GMS reforms brought certain results, with profit growth achieved despite a reduction in the number of stores. In addition to reforms to strengthen management of individual stores, 11 stores were renovated to New GMS and showing good performance. Existing stores continue to perform well
Slide 13: Summary of results by business (Asia business)
Summary of results by business (Asia business) Changes in sales for full year Asia business achieved profitability for the first time with sales expansion through aggressive store openings and <Million Yen> higher margin through PPIC +1,181 +1,447 +196 50,139 +20,907 8 new stores opened, including f
Slide 14: Summary of results by business (North America business)
Summary of results by business (North America business) Changes in sales for full year North America Business <Million Yen> Sales and operating profit grew due to the alternative demand for eating out associated with Covid pandemic, contributing to entire group’s sales and profits increase. In Calif
Slide 15: Retail operations information for full year
Retail operations information for full year Domestic retail (Unit: Millions of yen) Don Quijote Nagasakiya UD Retail UNY 12 months to 12 months to 12 months to 12 months to 12 months to 12 months to 12 months to 12 months to YoY YoY YoY YoY Jun 2020 Jun 2021 Jun 2020 Jun 2021 Jun 2020 Jun 2021 Jun 2
Slide 16: Segment information by business for full year
Segment information by business for full year *1 Segment overview by business for FY2020 [Period: July 1, 2019 – June 30, 2020] *2 (Unit: Millions of yen) *3 Discount store GMS Tenant leasing Other Total Adjusted Consolidated Sales to external customers Internal sales or transfers between segments T
Slide 17: Overview of full year results by consolidated businesses
Overview of full year results by consolidated businesses [ Period: July 1, 2020 – June 30, 2021] (Unit: Millions of yen) 12 months to June 2020 12 months to June 2021 Actual Share Actual Share YoY Discount store operations * Home electrical appliances Miscellaneous household goods Food products Watc
Slide 18: Status of major assets, liabilities and net assets
Status of major assets, liabilities and net assets (Unit: Millions of yen) (Unit: Millions of yen) June 2020 June 2021 June 2020 June 2021 Actual Actual Change Actual Actual Change *1 *1 Current Assets Total Current Liabilities Cash and deposits Accounts Payable-Trade Account receivable- Short-Term
Slide 19: Status of cash flows and capital expenditure
Status of cash flows and capital expenditure (Unit: Millions of yen) Cash Flow Status 12 months to June 2020 12 months to June 2021 Cash Flow Actual Actual Change Operating Cash Flows Positive items: 64.3 billion yen in income before income taxes and Balance at Beginning of others, 31.5 billion yen
Slide 20: Earnings forecast for the fiscal year ending June 2022
Earnings forecast for the fiscal year ending June 2022 Earnings forecast Preconditions for the forecast
Slide 21: Full year forecast of consolidated results
Full year forecast of consolidated results (Unit: Millions of yen) FY2022 1H forecast FY2022 full year forecast Actual Share YoY Actual Share YoY Sales Gross profit SG&A Operating profit Recurring profit Profit attributable to owners of parent EPS (Yen) Dividends per share (Yen) CAPEX Depreciation
Slide 22: Preconditions for the forecast
Preconditions for the forecast Sales Operating Profit (Millions of yen) (Millions of yen) FY2021 Domestic Overseas Other Forecast FY2021 Domestic Overseas Other Forecast Preconditions for the forecast Inbound sales are not included in the earnings forecast. Domestic business DS: Existing store sales
Slide 23: Strategies and Measures for the fiscal year ending June 2022
Strategies and Measures for the fiscal year ending in June 2022 Discount store business GMS business Overseas business Digital strategy ESG
Slide 24: Domestic discount store business
Domestic discount store business In light of changes in the external environment, we will create new value for the discount store business and differentiate ourselves. Changes in What to do for the discount store business the external environment Change in consumer behavior Deepen and strengthen cat
Slide 25: PB/OEM strategies
PB/OEM strategies The ratio of PB/OEM sales to total sales has improved since the 2nd half of FY2021. In FY2022, we expect to achieve sales of 250 billion yen (+27% YoY) by strengthening sales of existing products and expanding the product lineup through new development. Initiatives from FY2021 Stra
Slide 26: GMS Business
GMS Business Following the success of the GMS reform, the renovation to New GMS is accelerating. We aim to achieve the initial target, “Operation profit increase by 20 billion yen for UNY+UDR" (compared to 2019) with an evolved form such as UDR’s tenant-in style. Accelerate renovation to New GMS Fur
Slide 27: Overseas business
Overseas business Scheduled to open 12 new stores, Asia business and will continue to expand proactively. PPIC, which supports the business model, will strengthen its efforts by expanding its product supply not only to Asia but also to North America. Asia North America In FY2022, we will open a new
Slide 28: Digital data strategy shifting to implementation phase
Digital data strategy shifting to implementation phase Based on the knowledge accumulated from previous pilot initiatives, the "Marshmallow project" launched in 2019, the future digital and data strategy will accelerate to increase the contribution to the business by establishing and reorganizing sp
Slide 29: Digital Data Strategies Overview
Digital Data Strategies 1 Overview As a means of realizing “the customer matters the most” which is responsive to the times, we will underpin the transformation of our overall business by providing a personalized purchasing experience through implementing the followings: Customer understanding based
Slide 30: Digital Data Strategies: Providing seamless channel
Digital Data Strategies 2 Providing seamless channel By providing seamless contact with customers, we improve not only the value (convenience) we offer, but also use it to continuously improve our business as it is the great opportunity to learn about our customers. DS Business GMS Business Overseas
Slide 31: Digital Data Strategies: Strengthen the function of majica app
Digital Data Strategies 3 Strengthen the function of majica app To strengthen digital point of contact, which is also powerful business driver for meeting customer needs, the app function will be enhanced. Improve point of contact itself so that daily shopping can be convenient. 5 services that New
Slide 32: Digital Data Strategies: Redefinition of the platform
Digital Data Strategies 4 Redefinition of the platform In conjunction with PPIH‘s overall digital data strategy, it will serve as a platform to explore the “future of retail. The goal is to co-create new value by multiply various ideas and technologies with external collaborators*. Shopping Platform
Slide 33: ESG initiatives
ESG initiatives PPIH further strengthens its ESG initiatives by newly establishing "Sustainability Committee" as of July 1, 2021 to reinforce environmental and SCM activities, in addition to the Diversity Management Committee and Nomination/Compensation Committee which were established in FY2021. ES
Slide 34: Appendix
Appendix
Slide 35: Earnings summary for Q4
Earnings summary for Q4 [Period: April 1 – June 30, 2021] (Unit: Millions of yen) 3 months to June 2020 3 months to June 2021 Actual Share Actual Share Change YoY Sales Gross profit SG&A Operating profit Recurring profit Profit attributable to owners of parent *1. As the method for the valuation of
Slide 36: Consolidated financial results for Q4 (Year-on-year changes by retailer)
Consolidated financial results for Q4 (Year-on-year changes by retailer) [Period: April 1 – June 30, 2021] Net Sales Changes Operating Profit Changes <Million Yen> <Million Yen> Previous DQ DQ NA UNY Overseas Gelson’s Other Current Previous DQ NA UNY Overseas Gelson’s Other Current Q4 (with tax (Non
Slide 37: Q4 retail operations information
Q4 retail operations information [Period: April 1 – June 30, 2021] Domestic retail (Unit: Millions of yen) Don Quijote Nagasakiya UD Retail UNY 3 months to 3 months to 3 months to 3 months to 3 months to 3 months to 3 months to 3 months to YoY YoY YoY YoY Jun 2020 Jun 2021 Jun 2020 Jun 2021 Jun 2020
Slide 38: Q4 overview of results by consolidated businesses
Q4 overview of results by consolidated businesses [Period: April 1 – June 30, 2021] (Unit: Millions of yen) 3 months to June 2020 3 months to June 2021 Actual Share Actual Share YoY Discount store operations * Home electrical appliances Miscellaneous household goods Food products Watches and fashion
Slide 39: Comments on performance overview by consolidated business
Comments on performance overview by consolidated business [Period: April 1 – June 30, 2021] Processed foods and alcoholic beverages compensated for the reactionary decline from the previous year's special demand for hygiene products, stay-at-home, and telework items associated with the Covid pandemi
Slide 40: Breakdown of SG&A
Breakdown of SG&A [Period: April 1 – June 30, 2021] (Unit: Millions of yen) * 3 months to June 2020 3 months to June 2021 Actual Share Actual Share YoY SG&A Salaries and allowances Rent Commission paid Depreciation Other [Period: April 1, 2020 – June 30, 2021] (Unit: Millions of yen) * 12 months to
Slide 41: Store openings for current period
Store openings for current period New store openings for the full year: 13 in Japan, 8 overseas. 11 UDR Conversion, 11 New GMS renovation and 27 stores acquired from M&A. Corporation 1Q 2Q 3Q 4Q 1Q Business format Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Kawagoe Matsuyama Sevenpar
Slide 42: Store network
Store network No. of stores by format No. of stores by corporation FY2021 FY2021 FY2019 FY2020 FY2019 FY2020 Don Quijote * Don Quijote MEGA Nagasakiya New MEGA UD Retail MEGA Don Quijote UNY UNY * APITA/Piago * Lilac * Picasso * 99 Ichiba * Mini Piago * Doit * Daishin /Tachibana Dept. Doit Store Nag
Slide 43: Status of shares
Status of shares Trends in composition by owner (millions of shares) (People) (Thousands of shares) ※ Number of shareholders at end of the period Number of shareholders (right axis) Total number of shares issued Financial institutions Financial instruments dealers Number of shares issued (left axis)
Slide 44: Overview of results for listed subsidiaries
Overview of results for listed subsidiaries Japan Asset Marketing (8922) (Unit: Millions of yen) (Unit: Millions of yen) Previous Q1 Current Q1 March, 2020 June, 2021 April April 1~June 1~June 30, 30, 2020 2020 April April 1~June 1~June 30, 30, 2021 2021 Profit statement Balance sheet Actual Actual
Slide 45: IR inquiries, IR calendar, forward-looking statements
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 2022 (Scheduled) Date of announcement: November 10,
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Slide 48: 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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