Pan Pacific International Holdings Corporation · TSE:7532

Pan Pacific International — FY2024 Earnings Presentation

40 slides from Pan Pacific International's earnings presentation, Aug 16, 2024

  1. Slide 1: Results for FY2024

    Results for FY2024 August 16, 2024 Pan Pacific International Holdings Corporation

  2. Slide 2: INDEX

    INDEX １ Overview of FY2024 2 Targets for FY2025 3 Visionary 2030; Toward operating profit of 200 billion yen 4 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 Holding

  3. Slide 3: Executive Summary

    Executive Summary < Review of FY2024 > Sustained Growth through “Adaptability to Change” × “Earning Power”  Sales reached 2.0951 trillion yen (up 158.3 billion yen YoY/+8.2%), making it the fifth domestic retailer to surpass 2 trillion yen in sales.  Operating profit was 140.2 billion yen (up 34.9

  4. Slide 4: Review of the Midterm Management Plan Visionary 2025

    Review of the Midterm Management Plan “Visionary 2025”  Achieved all targets one year ahead of the consolidated plan, maintaining high growth  Continued sustainable growth, achieving an operating profit margin exceeding 6%, and more than doubling operating profit over five years ▶ vs. FY2019 (Unit

  5. Slide 5: Entering Execution Phase for 200 Billion yen Operating Profit by 2030

    Entering Execution Phase for 200 Billion yen Operating Profit by 2030  Regarding the achievement targets of Visionary 2030, the stance has shifted from ‘Seeing the path to an operating profit of 200 billion yen’ to ‘Execution phase’  The operating profit of 140 billion yen is now a launch pad; ach

  6. Slide 6: Overview of FY2024

    Overview of FY2024 5

  7. Slide 7: Financial Results for the Year Ended June 30, 2024

    Financial Results for the Year Ended June 30, 2024 【Period：July 1, 2023 – June 30, 2024】 (Unit：Billion yen) FY2023 FY2024 FY2024 Forecast Amount Amount Amount Change YoY Progress (Sales ratio) (Sales ratio) (Sales ratio) ※1 Net sales 1,936.8 2,095.1 +158.3 +8.2% 2,086.0 +0.4% 600.4 662.9 658.0 Gross

  8. Slide 8: Discount Store Business

    Discount Store Business Sales reached 1.3186 trillion yen (+141.1 billion yen YoY), and FY2024 Change in Sales operating profit was 86 billion yen (+30.4 billion yen), both widely exceeding the revised target (Billion yen)  Same-store sales achieved double-digit growth at 110.1% YoY  Tax-free sale

  9. Slide 9: Discount Store Business: Progress of Various Strategies ①

    Discount Store Business：Progress of Various Strategies ①  Through product development that captured demand, media exposure, and SNS strategies, sales reached 246.1 billion yen (YoY +48.2 billion yen), with a composition ratio of 19.3% (YoY +2.0pt), surpassing FY2023. New strategies will be formulat

  10. Slide 10: Discount Store Business: Progress of Various Strategies ②

    Discount Store Business：Progress of Various Strategies ②  Opened 24 stores with diverse formats in FY2024. New store opening strategies have been identified as shown below, expanding the potential for nationwide openings. Don Quijote Ota ＜Replacement-style＞ MEGA Don Quijote Yonago ＜Fresh Food MEGA

  11. Slide 11: GMS Business

    GMS Business Maintained a high-profit structure with sales of 462.4 billion FY2024 Change in Sales yen (+0.5 billion yen YoY), operating profit of 34.2 billion yen (Billion yen) (+6.2 billion yen YoY), and an operating profit margin of 7.4% (+1.3pt YoY)  Sales at same stores grew to 101.0% YoY  In

  12. Slide 12: 2019 UNY・UDR Midterm Plan Achieving Operating Profit +20 Billion Yen

    “2019 UNY・UDR Midterm Plan” Achieving Operating Profit +20 Billion Yen  Over five years since joining PPIH, UNY achieved dramatic progress, with sales increasing by +90.2 billion yen (114.7% vs. 2019), operating profit increasing by +23.1 billion yen (206.5% vs. 2019), and an operating profit margi

  13. Slide 13: Oversea Business

    Oversea Business North America experienced a decline in profits, but the effects of the FY2024 Change in Sales measures are evident. Gelson’s is still in the process of transformation. Growth investments in new store openings and the supply chain have (Billion yen) begun. Asia also saw a decline in

  14. Slide 14: Status of Major Assets, Liabilities and Net Assets

    Status of Major Assets, Liabilities and Net Assets (Unit: Billion yen) (Unit: Billion yen) June 2023 June 2024 June 2023 June 2024 Actual Actual Change Actual Actual Change Current Assets 551.8 513.4 (38.4) Current Liabilities 368.4 419.2 50.8 Cash and Deposits 242.1 172.7 (69.4) Accounts Payable 16

  15. Slide 15: Status of Cash Flows and Capital Expenditure

    Status of Cash Flows and Capital Expenditure ▶ Status of cash flows (Unit: Billion yen) ＜Operating CF: +150.6 billion yen＞ ▶ Cash in factors: Pre-tax net profit of 130.5 billion yen, FY2023 FY2024 depreciation of 46.2 billion yen, and an increase in accounts payable of 26.1 billion yen Actual Actual

  16. Slide 16: Shareholder Returns

    Shareholder Returns Towards a dividend policy that balances growth investment and shareholder returns  For FY2024, the company plans to raise its dividend for the 21st consecutive fiscal year. The initial forecast of 21 yen per share has been revised upward to 30 yen per share, including a commemor

  17. Slide 17: Commitment to ESG (1/2)

    Commitment to ESG（1/2）  Balancing the resolution of environmental and social issues with business growth to enhance the sustainability of PPIH’s operations  Utilizing the evaluations of ESG rating agencies as an objective assessment, leading to high ratings and inclusion in indices Midterm Goals P

  18. Slide 18: Commitment to ESG (2/2)

    Commitment to ESG（2/2） ESG investments and indices incorporating PPIH In FY2024, GPIF newly included PPIH in the ‘MSCI Japan ESG Select Leaders Index’ for ESG investment. Morningstar Japan ex-REIT Gender Diversity Tilt Index Major Initiatives for FY2024 Strengthening response to Building a supply ch

  19. Slide 19: Trends in Various Management Indicators

    Trends in Various Management Indicators  While maintaining growth investments for Visionary 2030, the aim is to enhance corporate value by stabilizing high ROE through improved profitability and strengthening dividend policies, all with a focus on capital costs and stock prices ROE ROE Net D/E rati

  20. Slide 20: Targets for FY2025

    Targets for FY2025 19

  21. Slide 21: FY2025 Full-Year Consolidated Earnings Forecast

    FY2025 Full-Year Consolidated Earnings Forecast  FY25 targets: sales of 2.22 trillion yen, operating profit of 150 billion yen, operating profit margin of 6.8%, aiming for 36 consecutive years of sales and operating profit growth (Unit: Billion yen) FY2024 2Q Earnings Forecast (Cum.) Full-Year Earn

  22. Slide 22: FY2025 Performance Forecast

    FY2025 Performance Forecast ■ Sales Sales  New Stores: Domestic 30 stores +x, Overseas 7 stores (Billion yen)  Same stores YoY • DS Business: 104.1% (tax-free sales target 150 billion yen) • GMS Business: 101.1% ■ Gross Profit Margin: 31.5% (-0.1pt)  DS: 27.7% (+0.4pt): PB/OEM sales will reach 32

  23. Slide 23: Visionary 2030

    Visionary 2030 - Toward operating profit of 200 billion yen - 22

  24. Slide 24: Discount Store Business: Key Strategies for Achieving Continued High Growth

    Discount Store Business: ‘Key Strategies’ for Achieving Continued High Growth  In addition to individual store management and delegation of authority, the execution of key strategies will lead to the expansion of the top line, profitability enhancement, acquisition of customer popularity, and respo

  25. Slide 25: PB/OEM Strategy: FY27 Sales Plan

    PB/OEM Strategy: FY27 Sales Plan of 500 billion yen  Double PB/OEM sales and switch with non-brand products to improve gross profit margin and increase profitability ▶ PB/OEM Plan  Potential for PB Expansion  Start offering more OEM items in the regular shelves to further expand PB. Increase thei

  26. Slide 26: Inbound Strategy: FY2027 Sales of 175.0 Billion Yen

    Inbound Strategy: FY2027 Sales of 175.0 billion yen  Don Quijote’s unique strength is offering exclusive amusement and shopping experiences = enhancing customer motivation with ‘shopping experiences only at Don Quijote.’  Various strategies will create a ‘desire to revisit,’ leading to further sho

  27. Slide 27: New Store Opening Strategy: Over 100 Stores by FY2027

    New Store Opening Strategy: Over 100 Stores by FY2027  Developing diverse business formats that other companies cannot replicate has led to the creation of more profitable models. Additionally, opening stores in “rail side” areas has enabled approaches to new customer segments, expanding opportunit

  28. Slide 28: Customer Acquisition Strategy: FY2027 Target of 30 Million Majica Members

    Customer Acquisition Strategy: FY2027 Target of 30 Million Majica Members  Utilizing media and new app initiatives, the goal is to double the number of majica members to 15 million by FY2027, aiming for 50% membership among the youth population1 Increasing Visit Frequency of New Customer Acquisitio

  29. Slide 29: GMS Business Strategy: Major Reform Phase for Non-Food Items

    GMS Business Strategy: Entering a major reform phase for non-food items, alongside further growth in food!  Food items continue to grow in both customer numbers and sales due to competitive pricing and high-quality ratings from customer surveys  Non-food items have seen significant improvements in

  30. Slide 30: North America Business Strategy

    North America Business Strategy: Growth and profit contribution through business expansion via new store openings ▶ Target figures for FY2030 (Unit: Billion yen)  Tokyo Central has become a stable revenue model, paving the FY2024 FY2025 FY2030 way for multi-store expansion 247.0 420.0 Sales 247.4 

  31. Slide 31: Asia Business Strategy: Recovering from the Worst Period

    Asia Business Strategy: Recovering from the Worst Period  Multiple stores generating stable revenue have been created, and the direction for unprofitable stores has been solidified ▶ Target figures for FY2030 (Unit: Billion yen) FY2024 FY2025 FY2030  Profitability improvement is on track 88.0  St

  32. Slide 32: Appendix

    Appendix 31

  33. Slide 33: Financial Results for Q4

    Financial Results for Q4 【Period: April 1, 2024 – June 30, 2024】 (Unit: Billion yen) Previous Q4 Results Current Q4 Results ※1 Amount Ratio Amount Ratio Change YoY Net sales 479.6 100.0％ 527.7 100.0％ +48.1 10.0％ Gross profit 149.9 31.3％ 169.2 32.1％ +19.3 12.9％ SG&A 126.4 26.3％ 139.3 26.4％ +12.9 10.2

  34. Slide 34: Q4 results by business segment

    Q4 results by business segment 【Period：April 1, 2024 - June 30, 2024】 (Unit : Billion yen) DS GMS Asia North America Others / Adjustments 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q Change Change Change Change Change FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 FY2023 FY2024 Net sales 299.6 333.9 34.4

  35. Slide 35: Overview of Q4 results by business on a consolidated basis

    Overview of Q4 results by business on a consolidated basis 【Period: July 1, 2023 – June 30, 2024】 (Unit: Billion yen) Q4 FY2023 (Cum.) Q4 FY2024 (Cum.) Amount Ratio Amount Ratio YoY Domestic DS 1133.3 58.5% 1275.1 60.9% 12.5% Home electrical appliances 82.4 4.3% 90.2 4.3% 9.4% Miscellaneous househol

  36. Slide 36: Breakdown of SG&A expenses

    Breakdown of SG&A expenses 【Period：April 1, 2024 – June 30, 2024】 (Unit : Billion yen) Q4 FY2023 Q4 FY2024 Amount Ratio Amount Ratio YoY SG&A 126.4 26.3% 139.3 26.4% 10.2% Salaries and allowances 47.1 9.8% 49.6 9.4% 5.3% Rent 15.1 3.2% 15.9 3.0% 5.3% Commission paid 14.4 3.0% 17.9 3.4% 23.9% Depreci

  37. Slide 37: New store openings: Discount Store and Overseas

    FY2024 New store openings 1Q 2Q 3Q 4Q Business Format Full-year Forecast Jul Aug Sept Oct Nov Dec Jan Feb Mar Apr May Jun Takamatsu Marugame Tsuruga- Imizu Narimasu shima Kaizuka Uenoshiba Neyagawa -Machi (Toyama) (Osaka) (Osaka) (Osaka) (Kagawa) (Saitama) (Tokyo) Keikyu GaLaTown Oita Hikone Uguisud

  38. Slide 38: Store network

    Store network Number of Domestic Retail Stores Number of Overseas Stores FY2024 FY2024 FY2022 FY2023 FY2022 FY2023 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Discount Store 468 486 485 488 488 501 North America 65 65 65 66 65 65 Don Quijote 237 250 250 253 252 262 California 37 37 37 38 37 37 MEGA Don Quijote1 140 140

  39. Slide 39: 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 Q1 earnings for the fiscal year ending June 2025 (scheduled

  40. Slide 40: 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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