Consolidated Financial Results
for the Three Months Ended May 31, 2023
[Japanese GAAP]
July 11, 2023
Company name: PAL GROUP Holdings CO., LTD.
Stock exchange listing: Tokyo Stock Exchange
Code number: 2726
URL: http://www.palgroup.holdings/
Representative: Ryuta Inoue, President and Representative Director
Contact: Yasuyuki Konishi, Executive Officer and General Manager of Finance and Accounting Division
Phone: +81-6-6227-0308
Scheduled date of filing quarterly securities report: July 12, 2023
Scheduled date of commencing dividend payments: —Availability of supplementary briefing material on quarterly financial results: Not available
Schedule of quarterly financial results briefing session: Not scheduled(Amounts of less than one million yen are rounded down.)
1. Consolidated Financial Results for the Three Months Ended May 31, 2023 (March 1, 2023 to May 31, 2023)(1) Consolidated Operating Results(% indicates changes from the previous corresponding period.)
Profit attributable toNet sales
Operating profit
Ordinary profit
owners of parent
million yen%million yen%million yen%Three months ended
46,991
19.9
5,707
29.0
5,833
27.9May 31, 2023
Three months ended
39,183—
4,423 146.6
4,561 159.5
May 31, 2022
(Note) Comprehensive income: Three months ended May 31, 2023: ¥4,048 million [32.2%]
Three months ended May 31, 2022: ¥3,062 million [194.1%]
Basic earnings per
share

Diluted earnings per
shareyenyen

million yen%

4,049

31.9

3,069

198.0

Three months ended
92.20—
May 31, 2023
Three months ended
69.88—
May 31, 2022
(Note) The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29,March 31, 2020) and other standards from the beginning of the three months ended May 31, 2022.
Therefore, the change in net sales for the three months ended May 31, 2022 from the previouscorresponding period is not presented.
(2) Consolidated Financial Position
Total assets
million yen

Net assets

Equity ratio

million yen%

As of May 31, 2023
117,467
55,945
As of February 28,112,510
55,191
2023(Reference) Equity: As of May 31, 2023: ¥55,945 million
As of February 28, 2023: ¥55,182 million

47.6
49.0

2. Dividends
1st quarter-end

Annual dividends
2nd quarter-end 3rd quarter-end

yen

Fiscal year ended—
February 28, 2023
Fiscal year ending—
February 29, 2024
Fiscal year ending
February 29, 2024
(Forecast)(Note) Revision of dividend forecast: NoYear-endTotal

yen

yen

yen

yen

0.00

—

75.00

75.00

0.00

—

60.00

60.00

3. Consolidated Financial Results Forecast for the Fiscal Year Ending February 29, 2024 (March 1, 2023 toFebruary 29, 2024)(% indicates changes from the previous corresponding period.)
Profit attributable to Basic earnings
Net sales
Operating profit
Ordinary profit
owners of parentper share
million yen%

million yen%yenFirst half
87,090 11.4
7,950
4.8
7,960
Full year
177,220
7.7
16,6205.0
16,720(Note) Revision of consolidated financial results forecast: Nomillion yen%million yen%

3.2
4.1

4,930
10,3802.5
4.3

112.24236.31

* Notes(1) Changes in significant subsidiaries during the period under review: No(2) Adoption of special accounting methods for preparing quarterly consolidated financial statement: No(3) Changes in accounting policies, changes in accounting estimates and corrections of errors
1) Changes in accounting policies due to the revision of accounting standards: No2) Any changes other than 1) above: No
3) Changes in accounting estimates: No4) Corrections of errors: No(4) Total number of issued shares (common shares)
1) Total number of issued shares at the end of the period (including treasury shares):
As of May 31, 2023
46,272,000 shares
As of February 28, 2023
46,272,000 shares2) Total number of treasury shares at the end of the period:
As of May 31, 2023
2,347,042 sharesAs of February 28, 2023
2,346,914 shares
3) Average number of shares during the period:
Three months ended May 31, 2023
43,925,035 shares
Three months ended May 31, 2022
43,925,749 shares* These quarterly consolidated financial results are not covered by the quarterly review conducted by certified
public accountants or audit corporations.
* Explanation of the proper use of financial results forecast and other notes
The statements regarding financial results forecast in this report are based on the information that is available, as
well as estimates, assumptions and projections that are believed to be reasonable at the time of publication, anddo not guarantee the achievement of the projections. Therefore, there might be cases in which actual results differ
from forecast values.

Appendix
1. Qualitative Information on Consolidated Financial Results for the Period under Review

2(1) Explanation of Operating Results

2(2) Explanation of Financial Position

2(3) Explanation of Consolidated Financial Results Forecast and Other Future Projections

3

2. Consolidated Financial Statements

4(1) Consolidated Balance Sheets

4(2) Consolidated Statements of Income and Comprehensive Income6

3. Additional Information

8(1) Sales Results by Segment (Consolidated)

8(2) Status of Stores (Consolidated)811. Qualitative Information on Consolidated Financial Results for the Period under Review(1) Explanation of Operating Results
During the three months ended May 31, 2023 (March 1, 2023 to May 31, 2023), economic activities
in Japan showed gradual recovery as social activities recovered due to the relaxation of various
regulations including the reclassification of COVID-19 from Class 2 to Class 5 under the Infectious
Diseases Control Law. However, the economic outlook remains uncertain primarily owning to the risingenergy prices and soaring raw material prices caused by prolonged Russia’s invasion of Ukraine, as wellas the higher prices due to the depreciation of the Japanese yen.
Under such a business environment, the Company has made continued efforts to strengthen EC sales
and online promotions ever since COVID-19 began spreading, and advanced the acceleration of newstore openings and the expansion of existing stores in response to an increase in foot traffic and aturnaround in commercial facilities attracting customers.
Through these measures, net sales in the Apparel Business increased by ¥3,978 million year on yearto ¥29,206 million and net sales in the Miscellaneous Goods/Accessories Business increased by ¥3,803
million year on year to ¥17,729 million.
As a result of the above, net sales for the three months ended May 31, 2023 increased by ¥7,807
million year on year to ¥46,991 million. In terms of profit, operating profit increased by ¥1,284 million
year on year to ¥5,707 million, ordinary profit increased by ¥1,272 million year on year to ¥5,833million, and profit attributable to owners of parent increased by ¥980 million year on year to ¥4,049million.
(2) Explanation of Financial Position(Assets)
Current assets increased by ¥3,402 million compared with the end of the previous fiscal year, due
mainly to increases in notes and accounts receivable - trade by ¥3,571 million and merchandise andfinished goods by ¥2,405 million, despite a decrease in cash and deposits by ¥5,156 million.
Non-current assets increased by ¥1,554 million compared with the end of the previous fiscal year, due
primarily to increases in buildings and structures by ¥1,131 million.
(Liabilities)
Current liabilities increased by ¥818 million compared with the end of the previous fiscal year, due
mainly to increases in notes and accounts payable - trade by ¥2,908 million and provision for bonuses by¥1,094 million, despite a decrease in current portion of long-term borrowings by ¥3,064 million.
Non-current liabilities increased by ¥3,385 million compared with the end of the previous fiscal year,
due primarily to increases in long-term borrowings by ¥3,066 million and asset retirement obligations by¥374 million.
(Net assets)
Net assets increased by ¥753 million compared with the end of the previous fiscal year, due mainly to
an increase in retained earnings by ¥755 million.

2(3) Explanation of Consolidated Financial Results Forecast and Other Future Projections
There is no change to the consolidated financial results forecast for the fiscal year ending February
29, 2024 from the financial results forecasts announced on April 11, 2023 in the “Consolidated FinancialResults for the Fiscal Year Ended February 28, 2023.”

32. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of February 28, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assetsLiabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Provision for bonuses
Provision for point card certificates
Provisions
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Retirement benefit liability
Provisions
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

4

As of May 31, 2023

63,8458,554
12,518577
85,496

58,68912,126
14,923
3,159
88,898

6,940
2,179
9,120
333

8,072
2,311
10,384348

11,7745,840(54)
17,56027,014
112,510

11,7406,149(54)17,83528,568117,467

24,335
250
3,064
4,828
2,602
178
546
7,431
43,237

27,243
250
–
1,790
3,697
197
206
10,66944,055

8,118
1,337
135
3,402
1,088
14,08257,31911,184
1,356
135
3,777
1,012
17,467
61,522

(Millions of yen)
As of February 28, 2023
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

5As of May 31, 2023

3,181
4,478
49,703(2,174)55,1873,181
4,478
50,458(2,174)55,94211(13)
6(5)
6(5)

2

8
55,191
112,510–55,945
117,467(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Share of profit of entities accounted for using
equity method
Royalty income
Subsidy income related to COVID
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent6Three months ended
May 31, 2022
39,183
16,585
22,59818,175
4,423

Three months ended
May 31, 2023
46,991
20,191
26,79921,092
5,707

0

0

79

120

7
43
37
167

4–
34
160

23
6
29
4,561

21
12
34
5,833

0
17
18
4,543
1,824(335)
1,488
3,054(15)
3,069

38
33
72
5,761
1,872(152)
1,720
4,040(8)4,049Consolidated Statements of Comprehensive Income(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests

7

Three months ended
May 31, 2022
3,054

Three months ended
May 31, 2023
4,040

(0)

(0)

3

73(0)

10

7
3,062

7
4,048

3,077

4,057(15)(8)

3. Additional Information(1) Sales Results by Segment (Consolidated)
Three months ended
May 31, 2022
million yen
Apparel Business
25,228
Miscellaneous Goods/
13,925
Accessories Business
Other29
Total
39,183Three months ended
May 31, 2023
million yen
29,206Percent change
year-on-year%
115.8

17,729127.3

55
46,991

189.2
119.9

(2) Status of Stores (Consolidated)

Number of stores as of February 28, 2023

Three months ended
May 31, 2023
927 stores

Number of new stores

42 stores

Number of closed stores

12 stores

Number of stores as of May 31, 2023

957 stores8