Concept of sustainability

Based on our corporate principle of "The Customer Matters Most", the PPIH Group is committed to resolving important environmental and social issues (materiality) through its core business of general retailing, with a primary focus on supporting the lifestyles of local customers and providing them with the enjoyment of shopping. We aim to achieve both the realization of a sustainable society and medium to long-term enhancement of corporate value through dialogue with our stakeholders.

We will continue to thoroughly adhere to our corporate philosophy and action guidelines set forth in "The Source" in the area of sustainability, always keeping in mind that contributing to customers and society through our business activities will enhance employees' sense of mission and pride. This will lead to a virtuous cycle that will enhance corporate value, as we boldly take up the challenge of both contributing to society and achieving growth for the Group.

The PPIH Group, with its origins in Don Quijote, is an international corporate group that aims to bring joy and excitement to customers and contribute to society through its distribution business. We will spare no effort to contribute to the cultural and economic development of the region and the nation by maximizing customer satisfaction and always providing what customers want in the way they want it, thereby stimulating consumption and expanding domestic demand.

Based on our corporate philosophy; "The Customer Matters Most", we have worked to become an indispensable presence for our customers and society in this era of significant change. Under our mid-to-long-term management plan "Visionary 2025/2030", we have promoted and strengthened our response to ESG (Environmental, Social, and Governance) issues in order to realize our vision of becoming a visionary company.
The new long-term management plan, "Double Impact 2035", focuses on enhancing corporate brand value in order to become the first brand customers think of and to create reasons for them to visit our stores as a pillar of our growth strategy. It also introduces a new human resources strategy to support this growth and positions sustainability as a key element within our management strategy. We will continue our efforts to realize a sustainable society and a sustainable company.

• A company where "The Customer Matters Most" applies to every corner of the organization
• A company that responds to change and boldly takes on new challenges
• A company that is constantly growing and setting bold goals
• A company that takes its core values (name = branding, stores, products, human resources) to the next level and targets innovation
• A management team that has ambitions for the growth of PPIH as a company, rather than personal goals, and can pass the baton of management and continued growth to the next generation in a timely manner

Long-Term Management Plan "Double Impact 2035"
- Human Capital Strategy -

Organization of people who set ambitious goals and take bold actions

Promote autonomous proactivity

• Provide far more opportunities for new hires to make decisions from the start compared to other companies through delegation of authority.
• Build an environment where employees can shape their careers by their own will, regardless of age, and take on bold challenges. Expand internal job posting programs that allow entry to all positions as one example.

Support autonomous challenges

• Provide growth opportunities to acquire new knowledge and skills, creating a culture where employees with store experience and strong execution capabilities identify successors and aim for the next stage of growth.
• Accept failures. Value and reward autonomous challenges to promote advancement and future opportunities.

Cultivating a corporate culture and systems that embody "The Source"

Promote a mindset of taking risks through delegation of authority, meritocracy, and acceptance of failure to create an environment where innovation thrives

Our group redefined its material issues--key challenges for realizing a sustainable society and corporate future--by discussing societal issues we can help solve by leveraging our strengths, taking into account stakeholder expectations and social demands, when formulating our 2022 mid-to-long-term management plan "Visionary 2025/2030".
Currently, incorporating the perspective of the new long-term management plan "Double Impact 2035" formulated in August of 2025, we are further strengthening initiatives based on these materiality issues.

In addition to business expansion and growth, the PPIH Group is developing corporate activities in order to create value for all stakeholders.
The source of our value is our employees, who respond to change based on our philosophy "The Customer Matters Most". We will contribute to solving environmental and social issues through sustainable business growth based on the mutual collaboration between exciting shopping experiences for our customers and employee satisfaction.
The value creation model of our group is a system that continuously improves both social and environmental value and economic value towards our vision of becoming a visionary company.