Pan Pacific International Holdings (7532) investor relations material

Transaction overview

• OSS entered a sponsor business transfer agreement with Toys "R" Us - Japan on October 1, 2026, the date the retailer petitioned for civil rehabilitation.

• OSS plans to acquire Toys "R" Us - Japan's toy, children's products and other retail businesses across stores and online channels.

• Closing is subject to court approval and other conditions, with completion scheduled for October 30, 2026.

• Plans include retaining as many employees as possible and seeking landlord consent to assume stores, excluding locations scheduled to close.

• Financial impact is to be disclosed with FY H1 results.

Strategic rationale and growth opportunities

• Japan's toy market reached ¥1,166.4bn in 2025, up 41.0% vs. 2021, with growth extending into IP, character merchandise, trading cards and hobbies.

• The strategy aims to build a leading toy-market position by combining Toys "R" Us expertise with an established retail platform; targeted sales are approximately ¥150.0bn.

• Expanded sourcing scale, manufacturer partnerships, improved purchasing terms, PB/OEM products, exclusives and early launches are intended to strengthen merchandising.

• Assortments are planned for niche interest communities, with expansion into categories such as strollers and educational toys.

Store and customer strategy

• The 158-store network as of June 30, 2026 provides nationwide customer touchpoints; planned expansion includes Toys "R" Us locations at APITA and MEGA Don Quijote.

• Store formats are intended to expand beyond traditional toys through IP, kidult and related non-toy offerings, including die-cast cars, model kits, figures, snacks and cosmetics.

• Plans call for more in-store play experiences, events and community engagement, serving customers of all ages and creating affordable entertainment.

• Commitments include keeping the maximum possible number of stores open, preserving jobs and launching Christmas promotions across stores in November.