Notice Regarding Recognition of Deferred Tax Assets and Upward Revision of Consolidated Earnings Guidance for Fiscal Year Ending March 2026

Upward Revision of Earnings Guidance

Polaris Holdings Co., Ltd. has revised upward its consolidated earnings guidance for the fiscal year ending March 2026. Net sales increased by 0.8% from the previous forecast of 46,600 million yen to 47,000 million yen, operating income rose by 2.8% from 3,600 million yen to 3,700 million yen, and ordinary income grew by 4.0% from 2,500 million yen to 2,600 million yen. Notably, net income attributable to owners of parent significantly increased by 53.8%, from 2,600 million yen to 4,000 million yen. This change mainly reflects the impact of the corporate tax adjustment amount associated with the recognition of deferred tax assets of approximately 1.3 billion yen related to tax carryforward losses.

Background of the Revision and Future Outlook

The revision is driven by strong performance in hotel operations, supported by expanding inbound demand and growing domestic lodging demand, resulting in robust occupancy rates and average daily room rates (ADR). Consequently, net sales, operating income, and ordinary income are expected to exceed previous forecasts. Additionally, the recognition of deferred tax assets and related corporate tax adjustment amount is projected to substantially increase net income. There is no change to the dividend forecast announced on November 13, 2025.