Pan Pacific International Holdings Corporation

Pan Pacific International Holdings Corporation

Ensuring thorough compliance

Purpose of the establishment of the Compliance Committee

Purpose of the establishment of the Compliance Committee With the Executive Officer in charge of legal and compliance as a central figure, the Compliance Committee formulates misconduct prevention measures, drafts investigation and survey plans, examines the results of such investigations and surveys, and shares and verifies information on misconduct cases that have occurred at other companies. It consists of directors, executive officers and outside directors (Audit and Supervisory Committee members), and receives advice from outside lawyers.
Additionally, to ensure the appropriateness of operations, the Group manages matters regarding compliance and internal control, guarantees a strong sense of ethics in business activities, and strives to ensure the legal compliance and implementation of the Group's corporate governance structure. Furthermore, responses to compliance risks are optimized by performing cross-organizational, Groupwide assessments and evaluations of these risks.

Whistle-blower system

As part of strengthening compliance, the PPIH Group has a "Compliance Hotline" for employees to report violations of laws, regulations, and internal rules and regulations. The "Compliance Hotline" has two contact points, one with an external law firm and the other with an internal contact point, from which employees can choose to make a report. In addition, in order to maintain a moderate and sound relationship with our business partners, we have established a hotline for them so that they are able to report any concerns they may have about the actions of our Group's account managers. We take the opinions of our business partners seriously and work to promptly make improvements, ensure fair transactions, and build stronger relationships of trust. These hotlines are operated in accordance with internal regulations, and the contents of reports are discussed by the Compliance Committee and reported to the Board of Directors and the Audit and Supervisory Committee as appropriate.
The contents of reports made to these hotlines are treated with the strictest confidentiality, and anonymous reporting is also possible, with e-mails being accepted 24 hours a day. Whistleblowers are thoroughly protected by the company regulations, which state that whistleblowers shall not be subject to any disadvantageous actions such as retaliation or worsening of the work environment because of their reporting. In addition, we actively introduce the "Compliance Hotline" in our company newsletter, monthly compliance training sessions, and internal posters in order to create an environment in which employees can use the hotline when necessary.

The establishment of a consultation service
The establishment of a consultation service
Framework of reporting from business partners
Framework of reporting from business partners Framework of reporting from business partners
Internal poster of

Internal poster of "Compliance Hotline

Poster of hotline for business partners displayed in business meeting rooms, etc. Poster of hotline for business partners displayed in business meeting rooms, etc.

Poster of hotline for business partners displayed in business meeting rooms, etc.

Compliance training for employees

Full-time and contract employees* receive e-learning compliance training sessions each month.
Compliance training is designed to improve each employee's understanding and awareness of each of the themes that are related to the business risks or the Group's sustainability key issues (Materiality), as well as to inform and promote the use of the Group's compliance system, including the whistle-blower system, in order to ensure the corporate compliance of the PPIH Group.

* UNY Co., Ltd. and UCS Co., Ltd. conduct compliance training for full-time employee

-Participation in compliance training for FY2023

Monthly average number of participants: 9,642
Monthly average attendance rate: 85.8%

Contents of the compliance training(July 2022 - August 2023)
Jul. 2022 Food hygiene and store safety
Aug. Antimonopoly Act and abuse of superior bargaining position 1
Sep. Intellectual property rights
Oct. Act against Unjustifiable Premiums and Misleading Representations
Nov. Fire Service Act and safety management
Dec. Antimonopoly Act and abuse of superior bargaining position 2
Jan. 2023 Labor Contracts Act
Feb. Information security and personal information protection
Mar. Antimonopoly Act and abuse of superior bargaining position 3
Apr. Compliance training tests
May Food hygiene and store safety
Jun. Explosives Control Law
Jul. Rules for the sale of age-restricted products (alcoholic beverages and cigarettes)
Aug. Harassment (sexual harassment, and other forms of harassment whether mental or physical)

Anti-corruption initiatives

In order to practice sound and fair business activities, we are thoroughly implementing group-wide anti-corruption initiatives in accordance with our corporate philosophy and code of conduct "The Source," and the "PPIH Group Anti-Corruption Policy," which was established with the approval of the Board of Directors.
As part of efforts to improve understanding and awareness of anti-corruption, in addition to compliance training for employees, training for executive officers on bribery was conducted in November 2022 by an outside lecturer. All executive officers participated in the training, which included lectures on domestic and international laws and regulations related to bribery and examples of compliance violations, as well as discussions on issues to be addressed by the Company.

Executive officers at the training

Executive officers at the training

We also ask our business partners who are contract manufacturers of our private brand (PB) products, to thoroughly prevent corruption through the "PPIH Group Supply Chain Code of Conduct" and a questionnaire survey to self-check their compliance with the code of conduct.

Tax compliance initiatives

The PPIH Group has established the "PPIH Group Tax Compliance Policy" with the approval of the Board of Directors in order to fulfill its proper tax obligations in each of the regions in which the Group operates. In accordance with this policy, the PPIH Group will disclose its tax status appropriately. We do not use tax havens for the purpose of tax avoidance.

- Tax status by region (FY2023)

(Unit:Million Yen)

Japan North America Asia Total
Net sales* 1,620,851 233,590 82,343 1,936,783
Income before income taxes 94,768 6,417 ▲445 100,739
Arising tax amount 34,333 2,606 428 37,367

* Net sales are based on the location of customers and are classified into countries or regions