Pan Pacific International Holdings Corporation · TSE:7532

Pan Pacific International — Q2 FY2024 Earnings Presentation

28 slides from Pan Pacific International's earnings presentation, Feb 13, 2024

  1. Slide 1: Q2 Results for FY 2024

    Q2 Results for FY 2024 February 13, 2023 Pan Pacific International Holdings Corporation

  2. Slide 2: Contents

    Contents １ Overview of Q2 results 2 Initiatives for Q3 and onward 3 Appendix Explanatory notes for these materials 1. The Amount values presented in these materials are rounded to the nearest full unit. 2. The following abbreviations are used in these materials: Pan Pacific International Holdings (7

  3. Slide 3: Overview of Q2 results

    Overview of Q2 results 2

  4. Slide 4: Q2 Executive summary

    Q2 Executive summary 1. Consolidated results overview  Achieved record profits for 1H The first half-year results for FY2024 exceeded 1 trillion yen in sales for the first time for a half-year. Record high profits were achieved in both 1H and Q2, with sales of 1,047.6 billion (up 69.1 billion or 7.

  5. Slide 5: Earnings summary for FY2024 Q2

    Earnings summary for FY2024 Q2 [Period: July 1, 2023–December 31, 2023] (Unit:Billion yen, unless otherwise indicated) FY2024 1H 1H Results Earnings Forecast FY2023 FY2024 Amount Amount YoY Change *1 Amount Progress (Sales ratio) (Sales ratio) Amount % Net sales 978.4 1,047.6 +69.1 +7.1% 1,031.8 101

  6. Slide 6: Full-year forecasts

    Full-year forecasts  The Operating income forecast for the full year has been revised upwards to 130 billion (up 19 billion yen from the initial forecast).  The breakdown of each business segment will also be changed based on progress up to the first half of the year. Full year forecast ＜ Operatin

  7. Slide 7: Discount Store Business

    Discount Store Business DS business continued to drive consolidated results, with sales of 660.5 FY2024 1H Change in Sales billion yen (+70.8 billion yen from 1H FY2023) and Operating income of 44.8 billion yen (+14.5 billion yen from 1H FY2023). <Billion yen>  Existing store sales landed at 110.4%

  8. Slide 8: DS business: progress on opening new stores

    DS business: progress on opening new stores Don Quijote Keikyu Kamata(Tokyo) Kirakira Donki Tanuki Koji(Hokkaido) (Opened on November 22, 2023) (Opened on December 1, 2023) Opened a new Donki store in a shopping center directly connected to a Kirakira Donki, the third store in Japan, is designed to

  9. Slide 9: GMS Business

    GMS Business Operating income increased by 5.0 billion yen from the previous 1H FY2024 1H Change in Sales as gross profit margin improved and SG&A expenses remained under <Billion yen> control.  Existing store sales were 99.5% of the previous 1H level.  Despite strong sales of summer products in Q

  10. Slide 10: Overseas Business

    Overseas Business Strategic investments such as new store costs continued, and overall FY2024 1H Change in Sales overseas sales increased but profits decreased. Operating income was <Billion yen> higher than planned in North America, but struggled in Asia. ■Asia Business  Sales declined by 0.2 bill

  11. Slide 11: Status of major assets, liabilities and net assets

    Status of major assets, liabilities and net assets (Unit: Billion Yen) (Unit: Billion Yen) June 2023 December 2023 June 2023 December 2023 Amount Amount Change Amount Amount Change Current Assets 551.8 546.3 (5.5) Total Current Liabilities 368.4 454.8 86.4 Cash and Deposits 242.1 186.9 (55.2) Accoun

  12. Slide 12: Status of cash flows and capital expenditure

    Status of cash flows and capital expenditure ▶ Cash Flow Status (Unit:Billion yen) ＜ Operating CF :+102.1 billion yen＞ 1H 1H ▶ Positive factors: 72.9 billion yen in income before FY 2023 FY 2024 income tax, an increase of 54.5 billion yen in accounts payable and 22.2 billion yen in Amount Amount Cha

  13. Slide 13: Status of shares

    Status of shares Dividends Shareholder Benefits  For FY2024, we expect to increase the dividends to 21 yen, making it 21st consecutive fiscal Shareholders who are listed or recorded in the year of dividends increase. shareholders' register as of the last day of June and December, and who hold at le

  14. Slide 14: FY2024 Initiatives for Q3 and onward

    FY2024 Initiatives for Q3 and onward 13

  15. Slide 15: Initiatives for Q3 and onward

    Initiatives for Q3 and onward  New store openings: Steadily progressing toward the annual plan of opening 25 stores, including specialized formats with clear customer targets and stores directly connected to train stations. Continue to open new stores in various packages to expand domestic market s

  16. Slide 16: Initiatives for Q3 and onward

    Initiatives for Q3 and onward  Individual store strategy: To strengthen non-food categories from the traditional food-centered assortment, i.e., cosmetics, character goods for tourists in urban areas, and daily consumables and household sundries in suburban areas, in line with consumption in each t

  17. Slide 17: (Reference) January Flash report of domestic DS/GMS business

    (Reference) January Flash report of domestic DS/GMS business  In domestic retail, the discount store business led sales and customer numbers. Both DS and GMS businesses had strong first sales and growth in all winter seasonal products. ▶ Year on Year sales of existing store ■ DS business  The stro

  18. Slide 18: Appendix

    Appendix 17

  19. Slide 19: Promotion of Sustainability Management: ESG-related topics

    (Reference 1)Promotion of Sustainability Management (1) [ESG-related topics]  Enhance PPIH's business continuity by balancing the resolution of environmental and social issues with business growth.  Utilize evaluations by ESG evaluation organizations as objective assessments, leading to high evalu

  20. Slide 20: Promotion of Sustainability Management: major ESG-related data

    Promotion of Sustainability Management (2) [major ESG-related data] Unit FY2021 FY2022 FY2023 Environment * Target:Reduce CO₂ emissions (Scope 1 and 2) from stores by 50% by 2030 (baseline FY2013) Scope 1 & 2 CO₂ emissions in total 534,349 522,868 541,244 Scope 1 t-CO₂ 67,266 70,174 65,324 Scope 2 4

  21. Slide 21: Q2 results by business segment

    Q2 results by business segment (Unit : Billion yen) 【Period:October 1, 2023–December 31, 2023】 DS business GMS business Asia business North America business Others・Adjustments Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Q2 Change Change Change Change Change FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 FY2

  22. Slide 22: Overview of Q2 results by business on a consolidated basis

    Overview of Q2 results by business on a consolidated basis [Period: July 1, 2023–December 31, 2023] (Unit:Billion yen) FY2023 1H FY2024 1H Amount Ratio Amount Ratio YoY Domestic DS Business 567.2 58.0% 638.3 60.9% 112.5% Home electrical appliances 42.4 4.3% 45.9 4.4% 108.1% Miscellaneous household g

  23. Slide 23: Breakdown of SG&A

    Breakdown of SG&A 【Period:October 1, 2023–December 31, 2023】 (Unit : Billion yen) Q2 FY2023 Q2 FY2024 Amount Ratio Amount Ratio YoY SG&A 124.6 24.7% 130.2 24.2% 104.5% Salaries and allowances 46.4 9.2% 48.8 9.1% 105.2% Rent 14.8 2.9% 15.5 2.9% 104.6% Commission paid 16.2 3.2% 16.1 3.0% 99.0% Depreci

  24. Slide 24: FY2024 New Store Openings

    FY2024 New Store Openings Q1 Q2 Q3 Q4 Business Format Full year forecast Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Takamatsu Marugame Tsurugashima Imizu 2 stores 2 stores 4 stores 4 stores +α -Machi (Saitama) (Toyama) (Kagawa) Keikyu Hikone Kamata (Shiga) (Tokyo) Discount Store DQ New store op

  25. Slide 25: Store network

    Store network Number of Domestic Retails Stores Number of Overseas Stores FY2024 FY2024 FY2022 FY2023 FY2022 FY2023 Q1 Q2 Q1 Q2 Discount store business 468 486 485 488 North America Business 65 65 65 66 Don Quijote 237 250 250 253 California 37 37 37 38 MEGA Don Quijote *1 140 140 140 140 Hawaii 28

  26. Slide 26: 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 2024 (Scheduled) Date of announcemen

  27. Slide 27: memo

    memo 26

  28. Slide 28: 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 — Q2 FY2024 Earnings Presentation on 6ix