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Presentation materials for financial results3010Polaris Holdings Co.,Ltd.Information and Communications, Services and Others

Fiscal Year Ending March 2027 First-Quarter Financial Results Presentation

Revenue increased 7.4% year on year, driven by the contribution from the opening of 6 new hotels, while operating profit decreased by ¥281 million due to higher rents and operating expenses, as well as increased costs related to new openings. The full-year earnings forecast was left unchanged, while the annual dividend forecast was raised from ¥5 to ¥10 per share.

Worth reading
71In focus
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Direction
Mixed performance
Direction inferred from the company’s description.
Scale
-281
¥ millions (year-on-year change in operating income)
Wording
Conditional
How definitive the wording is.

Contents of this document

Presentation materials for financial resultsFirst quarter of the fiscal year ending March 202712 items taken from the company’s own explanation
Financial Results Figures (The key points of this material are explained below)
Net Sales¥12,085 million+7.4%
Operating profit¥974 millions -22.4%before amortization of goodwill
Ordinary income¥701 millions -27.6%before amortization of goodwill
Net income¥458 millions -47.8%profit attributable to owners of the parent for the quarter, before amortization of goodwill
Selling, general and administrative expenses¥10,938 million
Results for the three months of the current quarterRevenue: ¥12,085 million; operating profit: ¥974 million; ordinary profit: ¥701 million; profit attributable to owners of the parent for the quarter: ¥458 million; adjusted quarterly net profit: ¥654 million
Full-year earnings forecast
Net Sales
¥54,500 million
Operating profit
¥5,504 millions before amortization of goodwill
Ordinary income
¥4,304 millions before amortization of goodwill
Profit attributable to owners of the parent
¥2,903 millions before amortization of goodwill
Adjusted net income
¥5,557 million
Annual Dividend
¥10
Progress against full-year forecast　通期の予想に対して、いまどこまで進んだかの割合です。
Net Sales22.2%
Operating profit17.7%
Ordinary income16.3%
Profit attributable to owners of the parent15.8%
Adjusted net income11.8%
What the company explained in this material
Self-assessment against the planThe company's self-assessment against its own plan.
Progress is slightly below the initial forecast
Breakdown of Factors Affecting the ChangeReasons cited by the Company for the change in the figures.
Net SalesContribution from newly opened hotels (+6 hotels), offset by fewer Chinese guests at existing operating hotels and weaker demand following the Kansai-Osaka Expo
Operating profitHigher variable rents accompanying the increase in revenue and other items, lower revenue at certain existing operating hotels, higher operating expenses at operating hotels, and accelerated payment of costs related to new openings
Ordinary incomeInsurance proceeds: ▲¥31 million
Quarterly net incomeAdjustment loss on income taxes of ¥197 million due to the reversal of deferred tax assets (up ¥135 million year on year)
Assumptions Underlying the Business OutlookThe assumptions used by the company in preparing its forecast.
Inbound demand excluding China remains strong. The company is monitoring the decline in visitors to Japan from China, the suspension of operations at 1 hotel due to the Kumamoto earthquake, and future inbound demand trends.
New initiatives
  • Opened 6 new hotels
  • Secured 8 contracts for new openings in the first quarter
  • Jointly acquired KOKO HOTEL Premier Tokyo Bay Makuhari with the sponsor group, with the company making a ¥1 billion silent partnership investment
  • Changed the shareholder return policy, raising the payout ratio target from at least 30% to at least 50%
  • Raised the dividend forecast for the fiscal year ending March 2027 from ¥5 to ¥10 per share
  • Introduced a new shareholder benefit program from the current fiscal year
Key KPIsA metric the company considers important as a management benchmark.
  • Room occupancy rate88.6 %
    Year on year against the same period last year▼0.7 percentage points
  • ADR¥12,871
    Year on year against the same period last year-1.2%
  • RevPAR¥11,403
    Year on year against the same period last year-1.9%
  • Inbound guest ratio50.6 %
    Year on year against the same period last year▲3.0 percentage points
  • Number of contracts secured for new openings8 Engagements
    Year on year against the same period last yearSignificantly higher than in the same period of the previous year
Unit price and quantity metricsThese figures show sales broken down by price and volume.
Room occupancy rate88.6%
ADR¥12,871
RevPAR¥11,403
Inbound guest ratio50.6%
Medium-term management plan targets
Hotels under management150
Number of guest rooms20,000
Target fiscal yearMedium-Term Plan 2030
Financial targets
The equity ratio was 46.5% at the end of June 2026 (46.5% at the end of March 2026); financial target: Not disclosed
Number of stores and locations
End of period126 operating hotels (80 operating in Japan, 31 scheduled to operate in Japan, and 15 operating overseas), with 17,869 rooms (as of 31 July 2026)
Number of store openings and closures during the periodSecured 8 contracts for new openings
Number of employees
Number of Employees1,940 People
Annual Dividend
Annual dividend per share¥10
BreakdownInterim and year-end breakdown: Not disclosed
Payout ratio
Rate50 %
Additional informationConsolidated payout ratio target of at least 50%; forecast for the fiscal year ending March 2027: 54.8%
Contents of this document
ItemDetails
Document typePresentation materials for financial results
Fiscal Period CoveredFirst quarter of the fiscal year ending March 2027
Net Sales¥12,085 million (YoY +7.4%)
Operating profit¥974 millions (before amortization of goodwill) (YoY -22.4%)
Ordinary income¥701 millions (before amortization of goodwill) (YoY -27.6%)
Net income¥458 millions (profit attributable to owners of the parent for the quarter, before amortization of goodwill) (YoY -47.8%)
Selling, general and administrative expenses¥10,938 million
Results for the three months of the current quarterRevenue: ¥12,085 million; operating profit: ¥974 million; ordinary profit: ¥701 million; profit attributable to owners of the parent for the quarter: ¥458 million; adjusted quarterly net profit: ¥654 million
Full-year earnings forecastNet Sales ¥54,500 million / Operating profit ¥5,504 millions (before amortization of goodwill) / Ordinary income ¥4,304 millions (before amortization of goodwill) / Profit attributable to owners of the parent ¥2,903 millions (before amortization of goodwill) / Adjusted net income ¥5,557 million / Annual Dividend ¥10
Progress against full-year forecastNet Sales 22.2% / Operating profit 17.7% / Ordinary income 16.3% / Profit attributable to owners of the parent 15.8% / Adjusted net income 11.8%
Self-assessment against the planProgress is slightly below the initial forecast
Breakdown of Factors Affecting the ChangeNet Sales Contribution from newly opened hotels (+6 hotels), offset by fewer Chinese guests at existing operating hotels and weaker demand following the Kansai-Osaka Expo / Operating profit Higher variable rents accompanying the increase in revenue and other items, lower revenue at certain existing operating hotels, higher operating expenses at operating hotels, and accelerated payment of costs related to new openings / Ordinary income Insurance proceeds: ▲¥31 million / Quarterly net income Adjustment loss on income taxes of ¥197 million due to the reversal of deferred tax assets (up ¥135 million year on year)
Key KPIsIndicator name Room occupancy rate / Value 88.6 % / Year on year against the same period last year ▼0.7 percentage points, Indicator name ADR / Value ¥12,871 / Year on year against the same period last year ¥-1.2, Indicator name RevPAR / Value ¥11,403 / Year on year against the same period last year ¥-1.9, Indicator name Inbound guest ratio / Value 50.6 % / Year on year against the same period last year ▲3.0 percentage points, Indicator name Number of contracts secured for new openings / Value 8 Engagements / Year on year against the same period last year Significantly higher than in the same period of the previous year
Unit price and quantity metricsRoom occupancy rate 88.6% / ADR ¥12,871 / RevPAR ¥11,403 / Inbound guest ratio 50.6%
Number of stores and locationsEnd of period 126 operating hotels (80 operating in Japan, 31 scheduled to operate in Japan, and 15 operating overseas), with 17,869 rooms (as of 31 July 2026) / Number of store openings and closures during the period Secured 8 contracts for new openings
Number of employeesNumber of Employees 1,940 People / Changes during the period and hiring plan Not disclosed
Assumptions Underlying the Business OutlookInbound demand excluding China remains strong. The company is monitoring the decline in visitors to Japan from China, the suspension of operations at 1 hotel due to the Kumamoto earthquake, and future inbound demand trends.
Medium-term management plan targetsHotels under management 150 / Number of guest rooms 20,000 / Target fiscal year Medium-Term Plan 2030
Financial targetsThe equity ratio was 46.5% at the end of June 2026 (46.5% at the end of March 2026); financial target: Not disclosed
Annual DividendAnnual dividend per share ¥10 / Breakdown Interim and year-end breakdown: Not disclosed
Payout ratioRate 50 % / Additional information Consolidated payout ratio target of at least 50%; forecast for the fiscal year ending March 2027: 54.8%
New initiativesOpened 6 new hotels, Secured 8 contracts for new openings in the first quarter, Jointly acquired KOKO HOTEL Premier Tokyo Bay Makuhari with the sponsor group, with the company making a ¥1 billion silent partnership investment, Changed the shareholder return policy, raising the payout ratio target from at least 30% to at least 50%, Raised the dividend forecast for the fiscal year ending March 2027 from ¥5 to ¥10 per share, Introduced a new shareholder benefit program from the current fiscal year
Items this document does not state (9)
Gross Profit MarginOperating profit marginSegment resultsRisk amount incorporated into the outlookAcquisition of treasury sharesCapital expendituresOrders received and order backlogMarket Size / ShareKey points of the Q&A

These are items the company does not state in this document. We do not leave them blank, nor fill them in from other sources or by inference.

The reasons the company gives

The company's own explanation, not something inferred from the numbers.

Revenue increased due to the contribution from newly opened hotels, while the decline in operating profit reflected fewer Chinese guests at existing operating hotels, weaker demand following the Kansai-Osaka Expo, higher variable rents and operating expenses, and the accelerated payment of costs related to new openings. The decrease in ordinary profit was attributed to lower insurance proceeds, while the decrease in net profit was attributed to the recognition of an adjustment loss on income taxes due to the reversal of deferred tax assets.

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Fiscal Year Ending March 2027 First-Quarter Financial Results Presentation | Polaris Holdings Co.,Ltd. (3010) timely disclosure | Komori