Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

August 13, 2024

Consolidated Financial Results
for the Three Months Ended June 30, 2024
(Under Japanese GAAP)
Company name: Polaris Holdings Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
3010
URL:
https://www.polaris holdings.com/en/
Representative:
Takahiro Tsujikawa, President & CEO
Inquiries:
Takashi Handa, Director and CFO
Telephone:+81-5822-3010
Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:
Holding of financial results briefing:―NoneNone(Amounts are rounded off to the nearest million yen.)

1. Consolidated financial results for the three months ended June 30, 2024 (from April 1, 2024 to June 30,2024)(1) Consolidated operating results (cumulative)
Net sales
Three months ended(Percentages indicate year-on-year changes.)

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen

June 30, 20244,752

73.4

442

142.1

287-

257

-

June 30, 2023

2,740

129.8

183

-

(4)

-(33)

-

Note: Comprehensive income

For the three months ended June 30, 2024:
For the three months ended June 30, 2023:

Basic earnings
per share
Three months ended%¥363 million¥24 million

[-%]
[-%]

Diluted earnings
per share
Yen

Yen

June 30, 2024

2.07

2.03

June 30, 2023

(0.28)-(2) Consolidated financial position
Total assets
As ofNet assets

Equity-to-asset ratio

Millions of yen

Millions of yen

June 30, 2024

22,915

7,24831.6

March 31, 2024

23,208

6,885

29.7

Reference:

EquityAs of June 30, 2024:
As of March 31, 2024:¥7,247 million¥6,884 million

1Millions of yen%%2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
March 31, 2024
Fiscal year ending
March 31, 2025-

Fiscal year-end

Total

Yen

Yen

0.00

-

0.00

0.00

0.00

-

3.00

3.00

-

Fiscal year ending
March 31, 2025
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated Financial Forecast for the Year Ending March 31, 2025 (from April 1, 2024 to March 31,2025)
Net sales
Millions of yen

Full year

Operating profit% Millions of yen

20,078 (10.9)%

1,891 (44.1)

Millions of yen%

1,315 (49.6)

Note: Revisions to the consolidated financial forecast most recently announced: None

2Profit attributable toowners of parent

Ordinary profit

Millions of yen

Basic earnings
per share%Yen

1,473 (55.3)

11.87

* Notes(1) Significant changes in the scope of consolidation during the period: Yes
Newly included: -companies (-)
Excluded:
1 companies General Incorporated Association Tenjin Hotel Kanri)(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:None(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of June 30, 2024

124,133,889 shares

As of March 31, 2024

124,133,889 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2024

1,674 shares

As of March 31, 2024

1,674 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscalyear)
Three months ended June 30, 2024

124,132,215 shares

Three months ended June 30, 2023

119,502,094 shares* Review of the Japanese-language originals of the attached consolidated quarterly financial statements bycertified public accountants or an audit firm: None
* Proper use of earnings forecasts, and other special matters
The earnings forecasts and other forward-looking statements herein are based on information currently
available to the Company and certain assumptions deemed reasonable as of the date of publication of thisdocument. Actual results may differ significantly from these forecasts due to a wide range of factors.

3

１．Overview of Business Results, etc.
（１）Overview of Operating Results
The following is a summary of Polaris group's operating results for the first quarter of the consolidated fiscalyear ending March 31, 2025.
ａ．Consolidated Results
FY3/2024
FY3/2025
Unit: JPY Million
Change (%)
1Q
1Q
Sales

2,740

4,752

73.4%

Operating Income

183

442

142.1%

Ordinary Income(4)287－257－

1Q Net Profit Attributed
to Parent Company(33)

During the first quarter of the consolidated fiscal year, the Japanese economy saw a gradual recovery,
supported by improvements in employment and income and an increase in inbound demand, however, theoutlook remains uncertain, as prices for resources, energy, and various materials continue to rise due tofactors such as the depreciation of yens.
In the hotel industry, the Polaris group’s main business, the number of inbound visitors to Japan exceeded 3
million each month from March to June 2024, and the number of foreign visitors to Japan continued toincrease, recording a record high of 3.14 million for the single month of June. In addition, according to theInbound Consumption Trends Survey, the amount of inbound travel spending (the first preliminary report)
from April to June 2024 increased significantly to 2,137 billion yen (+68.6% from the same period in 2019,+73.5% from the same period in the previous year), contributing to the expansion of the market size.
According to the Lodging Travel Statistics Survey published by the Japan Tourism Agency, the second
preliminary report May 2024 shows that the total number of overnight guests in Japan was 53.9 million(+4.9% from the same month in 2019, +5.0% from the same month in the previous year) of which, 40.34
million were Japanese overnight guests (-3.2% from the same month in 2019, -4.7% from the same month inthe previous year) and 13.56 million were foreign overnight guests (+39.4% from the same month in 2019,+50.4% from the same month in the previous year).
On the back of this positive environment, financial results for the first quarter of the consolidated fiscal year
ending March 31, 2025 were net sales JPY 4,752 million (of which, domestic net sales JPY 4,087 million,
overseas et sales JPY 666 million) and operating income JPY 442 million (of which, domestic operating
income JPY 357 million, overseas operating income JPY 85 million). The major factors are as described in
section “b. Results by Segment”.
Ordinary income was JPY 287 million (of which, domestic ordinary income JPY 352 million, overseas
income JPY -65 million).
Profit attributable to owners of parent on a consolidated basis was JPY 257 million (of which, profit
attributable to owners of parent for the domestic operation JPY 351 million, profit attributable to owners ofparent for the overseas operation JPY -94 million).
Polaris disclosed Medium Term Management Plan (FY2024-FY2026) (hereinafter the “Plan”) through thefiscal year ending March 31,2027 on May 14, 2024 and to achieve the business strategy on the Plan,
executed a Comprehensive Support Agreement for Hotel Management, etc. with Star Asia Investment
Management Co., Ltd (hereinafter the “SAIM”) and Star Asia Investment Corporation which has
entrusted the management of its assets to SAIM which both belong to the Star Asia Group, the parent
company group of Polaris, on the same date.
Based on the Plan, Polaris made a strategic joint investment with Star Asia Group, the sponsor group ofPolaris, in June 2024 in Minacia Co., Ltd. (hereinafter the “Minacia”), which has high similarity andcompatibility with Polaris group’s hotel business and to achieve synergy effects through collaboration withMinacia, executed a Business Alliance Agreement.

4ｂ．Results by Segment＜Hotel Business＞
Unit: JPY Million

FY3/2023
1Q

FY3/2025
1Q

Change (%)

Sales

2,729

4,735

73.5%

Operating Income

268

607

126.4%The hotel business recorded net sales of JPY 4,735 million and operating income of JPY 607 million.
Polaris has maintained high occupancy rates and room rates through precise revenue management in afavorable hotel market. The business started to operate KOKO HOTEL Sendai Sendai Kotodai Park,
KOKO HOTEL Sendai Station South, KOKO HOTEL Sendai Station West in Sendai City, Miyagi
Prefecture, in September 2023, Red Planet BGC The Fort in December 2023, and Best Western PLUS
Nagoya Sakae in Nagoya City, Aichi Prefecture, in March 2024 and contributed to improve businessperformance. In addition, Fino Hotel Sapporo Odori was rebranded to KOKO HOTEL Sapporo Odori inorder to further expand recognition of original brand, KOKO HOTEL in April 2024.
＜Real Estate Business＞
Unit: JPY Million

FY3/2024
1Q

FY3/20251QChange (%)

Sales

134

18(86.9%)

Operating Income

64

17(73.4%)

The real estate business recorded net sales of JPY 18 million and operating income of JPY 17 million.
（２）Overview of Financial Condition
The following is an overview of Polaris group’s financial condition for the first quarter of the consolidated
fiscal year ending March 31, 2025.
（Asset）
Total assets amounted to JPY 22,915 million, which decreased by JPY 293 million from the end of theprevious fiscal year. Major factors included a JPY 906 million decrease in other current assets and a JPY
451 million increase in buildings and structures, net.
（Liability）
Total liabilities amounted to JPY 15,667 million, which decreased by JPY 656 million from the end of theprevious fiscal year. Major factors included a JPY 341 million in accounts payable – other and a JPY 525
million in other current liabilities.
（Net Asset）
The net assets amounted to JPY 7,248 million, which increased by JPY 363 million from the end of theprevious fiscal year. Major factors included a JPY 257 million increase in retained earnings, in net income
attributable to parent company shareholders.
（３）Forecast Information including Consolidated Performance Forecast
There are no changes from the full-year performance forecast disclosed on May 14, 2024 “Consolidated
Financial Results for the Fiscal Year Ended March 31 2024 Under Japanese GAAP”.

5

Quarterly Consolidated Financial Statements
1) Quarterly Consolidated Balance Sheets(Thousands of yen)
As of March 31, 2024

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Right-of-use assets, net
Other, net
Construction in progress
Total property, plant and equipment
Intangible assets
OtherTotal intangible assets
Investments and other assets
Investment securities
Leasehold and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets

6

As of June 30, 2024

3,384,374
1,761,216
126,576
2,690,186△5,926
7,956,426

2,915,861
1,781,317
117,372
1,783,761△6,224
6,592,087

9,776,563
493,725
2,087,426
414,35637,247
12,809,316

10,227,149
506,100
2,139,221
412,657
59,99913,345,126

30,23430,23453,57053,570179,909
1,258,893
973,330
2,412,131
15,251,681
23,208,107

179,9091,260,966
1,483,534
2,924,409
16,323,105
22,915,192

(Thousands of yen)
As of March 31, 2024
Liabilities
Current liabilities
Accounts payable - trade
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Provision for shareholder benefit program
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Subordinated capital loans
Lease liabilities
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Foreign currency translation adjustment
Total accumulated other comprehensive
incomeShare acquisition rights
Total net assets
Total liabilities and net assets

7

As of June 30, 2024

362,824
984,000
849,308
1,846,07218,071
6,235－
1,713,840
5,780,350

340,132
970,700
815,443
1,505,545
34,376
6,235
34,875
1,188,626
4,895,931

6,016,982
950,000
2,925,280
32,897
169,000
448,815
10,542,975
16,323,325

6,009,261
950,000
3,039,203
34,584
169,000
569,005
10,771,053
15,666,984

65,571
2,317,803
4,438,943△2,9926,819,325

65,571
2,317,803
4,696,041△2,992
7,076,424

64,735

171,062

64,735

171,062722
6,884,782
23,208,107722
7,248,207
22,915,192

2) Quarterly Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Quarterly Consolidated Statements of Income)(For the Three months ended June 30, 2024)(Thousands of yen)Three months ended
June 30, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Subsidy income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses on bonds
Interest expenses
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary losses
Loss on valuation of investment securities
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to owners of parent

Three months ended
June 30, 2024

2,740,109
165,408
2,574,701
2,392,153
182,548

4,752,112
201,7144,550,398
4,108,387
442,011

6,082
3,901
5,414
1,975
17,372

6,555
2,039
1,214
200
10,00815,767
183,499
5,050
204,316△4,396－
160,573
4,803
165,376
286,643

2,585
2,585
△6,981
11,747
14,51926,266△33,247△33,247－－
286,643
21,872
7,673
29,545
257,098
257,098(Quarterly Consolidated Statements of Comprehensive Income)(For the Three months ended June 30, 2024)(Thousands of yen)Three months ended
June 30, 2023
Profit (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent8

Three months ended
June 30, 2024

△33,247

257,09830－57,591
57,621
24,374

106,327
106,327
363,425

24,374363,425