〔Delayed〕The original disclosure in Japanese was released on November 12, 2014 at 15:00 (GMT+9)

November 12, 2014

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Nine Months ended September 30, 2014
(Japanese GAAP)
Stock listing: Tokyo Stock Exchange (First Section)
Securities code: 2418
URL: http://www.bestbridal.co.jp/english/
Representative: Masayuki Tsukada, President and CEO
Information contact: Keiji Ishihara, Director
Tel: +81-3-5464-0081
Scheduled dates:
Filing of statutory quarterly financial report (sihanki hokokusho): November 14, 2014
Dividend payout:
Supplementary materials to quarterly financial results available: No
Quarterly earnings presentation held: No(Amounts rounded down to the nearest million yen)

1. Consolidated Performance for the Nine Months ended September 30, 2014
(January 1, 2014 – September 30, 2014)(1) Consolidated Operating Results
Net sales
million yen(Percentages indicate year-on-year changes)%

Operating income
million yen%

Ordinary income
million yen%

Nine months ended
34,793
5.6
2,526
-24.8
2,683
-22.5
September 30, 2014
Nine months ended
32,945
8.4
3,362
11.8
3,464
14.6
September 30, 2013
Note: Comprehensive income: Nine months ended September 30, 2014:
1,633 million yen (-17.8%)
Nine months ended September 30, 2013:
1,988 million yen (50.0%)
Diluted net income
per shareyen

Net income
per shareyen
Nine months ended
September 30, 2014
Nine months ended
September 30, 2013

32.59

29.10

38.73

38.53

(2) Consolidated Financial Position

September 30, 2014

Total assets
million yen
58,280Equity ratio%

Net assets
million yen
25,80053,96824,668December 31, 2013
Reference: Total equity: September 30, 2014: 25,800 million yen
December 31, 2013: 24,668 million yen
Total equity=Shareholders’ equity plus total accumulated other comprehensive income.

44.3
45.7

Net income
million yen
%
1,591

-16.1

1,895

43.0

2. Dividends
End-Q1yen

End-Q2yen

Dividend per share
End-Q3yen

Year ended
1,000.00
December 31, 2013
Year ending
5.00
December 31, 2014
Year ending
December 31, 2014
(Forecast)
Note: No revision has been made to the latest dividends forecast.

Year-endyen

Annual total
yen

5.00

-

5.00

10.00

-

Effective July 1, 2013, the Company conducted a 1:200 common stock split. Without adjusting to the stock split, theyear-end dividend per share for the fiscal year ended December 31, 2013 would be 1,000.00 yen, totaling theannual dividend per share of 2,000.00 yen.

3. Earnings Forecast for the Fiscal Year ending December 31, 2014
(January 1, 2014 – December 31, 2014)(Percentages indicate year-on-year changes)
Net sales
million yen%

Operating income

Ordinary income

million yen

million yen%

Year ending
52,650
11.0
7,250
5.7
December 31, 2014
Note: No revision has been made to the latest earnings forecast.

7,250

%
1.7

Net income

Net income
million yen

%

4,300

1.5

*Notes(1) Changes affecting the consolidation status of significant subsidiaries during the period: Yes
Newly Consolidated: 4 Subsidiaries (Best Bridal, Inc., FAJA Co., Ltd., RAJA Co., Ltd.,
Retreat Co., Ltd.)
Newly Deconsolidated: None
Note: For details, please refer to “(1) Changes in Significant Subsidiaries” in Section “2.
Other Information” on page 4.
(2) Use of accounting methods specific to the preparation of quarterly consolidated financial
statements: Yes
Note: For details, please refer to “(2) Application of Specific Accounting Methods for the
Preparation of Quarterly Financial Statements” in Section “2. Other Information” on page 4.
(3) Changes in accounting policy, changes in accounting estimates, and retrospective
restatement
1) Changes in accordance with amendments to accounting standards, etc.: None
2) Changes other than noted in 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None

per share
yen
88.06

(4) Shares issued (common stock)1) Number of shares issued at end of period(including treasury stock)2) Number of shares held in treasury at end of
periodSeptember 30, 2014

December 31, 2013

48,960,000

48,960,000

131,512

131,512Nine Months ended Nine Months ended
September 30, 2014 September 30, 2013
3) Average number of shares outstanding during
the period

48,828,488

48,946,649* Quarterly Review Status
This report is exempt from the review requirements of Japan’s Financial Instruments and Exchange Act. Asof this report publication, a review of the consolidated quarterly financial statements in accordance with the
Act is underway.
*Appropriate Use of Earnings Forecast and Other Important Information
The above forecasts are based on information available as of this report’s publication and on
certain assumptions that are deemed reasonable. Actual results may differ from forecasts due tochanges in the business environment. For the assumptions underlying the forecasts herein andother notice on the use of earnings forecasts, please refer to “(3) Earnings Forecast for the Fiscal
Year Ending December 31, 2014” in the section “1. Review of Consolidated Financial Results” onpage 3 in the accompanying materials.

Accompanying Material – Contents
1. Review of Consolidated Financial Results(1) Operating Results(2) Financial Condition(3) Earnings Forecast for the Fiscal Year ending December 31, 2014
2. Other Information(1) Changes in Significant Subsidiaries(2) Application of Specific Accounting Methods for the Preparation of Quarterly
Financial Statements(3) Changes in Accounting Policies, Estimates, and Retrospective Restatement
3. Consolidated Financial Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income(3) Notes on the Financial Statements(Note on the Going-concern Assumption)(Note on Significant Changes in the Amount of Shareholders’ Equity)(Segment and Other Information)
4. Supplementary Information

1

2
2
3
3
4
4
4
4
5
5
7
7
8
9
9
9
10
12

1. Review of Consolidated Financial Results(1) Operating Results
In the first nine months of the fiscal year ending December 31, 2014, the Japanese economy
showed weakness in some areas amid the prolonged fallback in demand following the last-minutesurge that preceded the consumption tax hike. Overall, however, the domestic economy stayed ona moderate recovery track as the impact of government economic policies and the Bank ofJapan’s financial measures led to improvements in corporate earnings as well as the employment
and wage environment. Nonetheless, the outlook remains uncertain in light of concerns about the
impact of downturns in overseas economies and a possible rise in the cost of imported goods fromthe weak yen and high fuel prices.
Amid this environment, the Tsukada Group endeavored to increase sales and profitability by
redoubling our efforts to create new value in the bridal market and hotel market; to establish
high-quality, appealing outlets; and to deliver high value-added services that accurately respond toincreasingly diverse and individualized customer needs.
Furthermore, in the third quarter, the Tsukada Group acquired all the outstanding shares of
FAJA Co., Ltd. in view of the prospects of a major development and expansion of therelaxation-related market going forward thanks to the burgeoning interest in health and beauty inrecent years. Please note that only FAJA’s balance sheet figures were incorporated in our
nine-month consolidated financial statement given that the deemed acquisition date of thecompany was September 30, 2014.
As a result of these efforts, the Group posted consolidated net sales of ¥34,793 million in the firstnine months of the fiscal year, an increase of 5.6% over the same period of the previous fiscal year.
However, a decrease in the number of weddings held at existing outlets and an increase in fixed
expenses at certain consolidated subsidiaries led to lower profits. Operating income totaled ¥2,526
million, a year-on-year decrease of 24.8%, ordinary income amounted to ¥2,683 million, down
22.5%, and net income was ¥1,591 million, a 16.1% decrease from the first nine months of theprevious fiscal year.
The results for each business segment were as follows.
Note that the Group’s reporting segments have been changed, starting from the first and third
quarters of the fiscal year ending December 31, 2014. The year-on-year comparisons presented
below are based on figures for the same period of the previous fiscal year adjusted for the change
in reportable business segments for the current fiscal year.
1) Domestic wedding businessIn the first nine months of the current fiscal year, the number of small weddings held remained
steady, but overall sales declined slightly owing to the reduction in the number of weddings held atexisting outlets during the term.
As a result, net sales in the domestic wedding business totaled ¥25,095 million, a year-on-year
decrease of 3.6%, and segment operating income came to ¥3,579 million, down 22.8%.
2) Hotel business
During the first nine months of the fiscal year, sales of the Hotel InterContinental Tokyo Bay werefirm following its renovation in fiscal 2013. In addition, the recently acquired The Strings byInterContinental Tokyo contributed to segment sales growth.

2As a result, net sales in the hotel business reached ¥7,307 million, a year-on-year increase of
50.1%. The segment posted an operating loss of ¥69 million, contracting from an operating loss of¥324 million during the same period of the previous fiscal year.
3) Overseas business
During the first nine months of the fiscal year, our overseas business steadily increased its direct
sales business and enjoyed an increase in the number of weddings held for non-Japanese
couples.
As a result, net sales in the overseas business totaled ¥2,390 million, a year-on-year increase of
16.7%, and segment operating income totaled ¥31 million, up 35.2%.
4) W&R business (Wellness & Relaxation business)
Only FAJA’s balance sheet figures were incorporated in our nine-month consolidated financial
statement as the deemed acquisition date of the company and the two subsidiaries was
September 30, 2014.
Accordingly, the results from this segment are not reported in our nine-month consolidated
financial statement.

(2) Financial Condition
1) Assets, liabilities, and net assets
Assets at the end of the third quarter (September 30, 2014) totaled ¥58,280 million, an increase of¥4,311 million from the end of the previous fiscal year (December 31, 2013). This largely stemmed
from a ¥1,909 million increase in goodwill in conjunction with the new business acquisition andshare purchase, a ¥1,760 million increase in cash and deposits, a ¥1,362 million increase in leaseand guarantee deposits as well as an ¥880 million increase in tangible assets related to the
preparation of the opening of new outlets. These gains more than offset a ¥1,378 million decreasein other current assets.
Liabilities at the end of the third quarter totaled ¥32,479 million, ¥3,179 million more than at theend of the previous fiscal year. The increase in liabilities was primarily due to a ¥2,941 million yen
net increase in debt and bonds, a ¥1,264 million increase in advances received and a ¥331 million
increase in asset retirement obligations related to the new business acquisition, which partially
offset the ¥1,485 million decrease in income taxes payable.
Net assets at the end of the third quarter totaled ¥25,800 million, an increase of ¥1,131 million
from the end of the previous fiscal year. This increase was mainly due to the booking of ¥1,591
million in net income for the period, which outweighed the ¥488 million in dividends paid fromretained earnings.

(3) Earnings Forecast for the Fiscal Year Ending December 31, 2014
There is no change to the consolidated earnings forecasts for the year ending December 31, 2014,
which the Company announced on August 8, 2014.

3

2. Other Information(1) Changes in Significant Subsidiaries
In the first quarter (January 1 to March 31, 2014) of the current financial year, Best Bridal, Inc. wasnewly established, the trade name of which has been changed from Best Bridal Inc. Successor
Preparatory Company effective from July 1, 2014, and has consequently been added to the scopeof consolidation. Though not statutorily required, Ecpark Pte. Ltd., has also been added to thescope of consolidation as its relative importance increased under the Group’s revised policy on
consolidation.
In the third quarter (July 1 to September 30, 2014) of the current financial year, the shares of
FAJA Co., Ltd. were acquired, and hence FAJA and its 2 subsidiaries have been added to thescope of consolidation. As the date of said acquisition has been, however, deemed to be
September 30, 2014, only their balance sheets have been consolidated with the Company’s in thethird quarter of the current financial year.
(2) Application of Specific Accounting Methods for the Preparation of Quarterly Financial
Statements(Simplified accounting methods)
1) Calculation method for depreciation of fixed assets
Depreciation expenses for assets to which the declining-balance method is applied are calculatedby allocating a quarterly proportion of the amount for the full financial year.
2) Calculation method for deferred tax assets and deferred tax liabilities
Regarding judgments on the amount of recoverable deferred tax assets, the Company has
determined that there have been no significant changes in the economic environment or
emergence of temporary differences since the end of the previous financial year, and therefore thecalculations are based on future earnings forecasts from the previous year and tax planning
methods.
(Special accounting treatments)
Calculation of taxes
The Company calculates tax liabilities by producing a reasonable estimate of the effective tax rate
after applying tax-effect accounting to income before income taxes and minority interests for the
fiscal year, which encompasses the nine months ended September 30, 2014, and then multiplying
income (loss) before income taxes and minority interests by this estimated effective tax rate. In
cases where this estimated effective tax rate cannot be used, the statutory effective tax rate isused.
(3) Changes in Accounting Policies, Estimates, and Retrospective Restatement
Not applicable.

43. Consolidated Financial Statements(1) Consolidated Balance Sheets

AssetsCurrent assets
Cash and deposits
Accounts receivable - tradeMarketable securities
Merchandise
Raw materials and supplies
Other
Allowance for doubtful receivables
Total current assets
Fixed assets
Tangible assets
Buildings and structures, net
Land
Other, net
Total tangible assets
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Other
Total investments and other assets
Total fixed assets
Deferred assets
Total assets

5

December 31, 2013
Amount(millions of yen)
September 30, 2014
Amount

8,866
476
5,000
3
373
3,216
(41)
17,895

10,627
759
4,213
39
461
1,837
(42)
17,897

15,342
4,757
1,361
21,46015,3134,810
2,216
22,341

962
191
1,153

2,871
179
3,051

6,299
7,103
13,40236,01656
53,9687,661
7,214
14,87540,268114
58,280Liabilities
Current liabilities
Accounts payable - trade
Short-term debt
Current portion of long-term debt
Current portion of bonds
Income taxes payable
Advances received
Provision for point card certificates
Other
Total current liabilities
Fixed liabilities
Bonds
Convertible bonds
Long-term debt
Provision for employees’ retirement benefits
Provision for directors’ retirement benefits
Asset retirement obligations
Other
Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gain on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

6

December 31, 2013
Amount(millions of yen)
September 30, 2014
Amount

2,189
2,709
484
1,786
968
2,231
10,370

2,163
400
2,427
734
301
2,232
40
2,452
10,753

1,106
5,000
9,960
282
636
1,083
861
18,92929,3003,422
5,000
10,217
300
672
1,414
700
21,72632,479472
634
23,443(88)
24,461

472
634
24,531(88)
25,549

88

105

46

10

71
206
24,66853,968134250
25,80058,280(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gain on investments in silent partnership
Foreign exchange gains
Gain on valuation of derivatives
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Fees and commissions paid
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sales of fixed assets
Total extraordinary income
Extraordinary loss
Loss on store closing
Loss on disposal of fixed assets
Total extraordinary loss
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in income (loss)
Net income

7

Nine months ended
September 30, 2013
Amount32,94522,063
10,881
7,519
3,362(millions of yen)
Nine months ended
September 30, 2014
Amount34,793
23,793
11,000
8,473
2,526

47
50
122
65
94
380

54
106
126
96
56
39
481

194
75
8
278
3,464

155
159
11
325
2,683

0
0

7
0
8

6
36
42
3,421
1,525
1,895
1,895

22
22
2,669
1,079
1,589
(1)
1,591

Consolidated Statements of Comprehensive Income

Income before minority interests
Other comprehensive income
Net unrealized gain on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments
Share of other comprehensive income of affiliates
accounted for under the equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to minority
interests

8(millions of yen)
Nine months ended Nine months ended
September 30, 2013 September 30, 2014
AmountAmount
1,895
1,589
10

16

16

(35)

45

63

20

-

92
1,988

43
1,633

1,988

1,633

-

-

(3) Notes on the Financial Statements(Note on the Going-concern Assumption)
Not applicable(Note on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable9(Segment and Other Information)(Segment Information)
I. Nine months ended September 30, 2013 (January 1 to September 30, 2013)
1. Net sales and income/loss by reportable segment(millions of yen)

Reportable segment
Domestic
weddingbusiness
Net sales
Sales to outside customers
Inter-segment sales andtransfers
Total
Segment income (loss)
Notes:

Amount recorded
Adjustmentson consolidated

Hotelbusiness

Overseasbusiness

26,028

4,867

2,048

32,945-32,945

257

91

0

349

(349)

-

26,286

4,959

2,049

33,294(349)

32,945

4,637

(324)

23

4,336

(974)

3,362

Total

(note 1)statements ofincome (note 2)

1. Minus 974 million yen adjustments for the segment income or loss include 28 million yen
elimination of inter-segment sales and minus 1,002 million yen corporate expenses that are notallocated to each reportable segment. The main component of these unallocated corporate
expenses is SG&A expenses that are not attributable to reportable segments.
2. Segment income or loss adjustments are based on operating income reported on the quarterly
consolidated statements of income for the corresponding period.

2. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable
II. Nine months ended September 30, 2014 (January 1 to September 30, 2014)
1. Net sales and income/loss by reportable segment(millions of yen)

Reportable segment

Amount recorded

Domestic
weddingbusinessHotelbusiness

Overseasbusiness

W&R
business

Total

25,095

7,307

2,390

-

34,793-

34,793

371

101

0

-

473

(473)

-

Total

25,467

7,408

2,390

-

35,266(473)

34,793

Segment income (loss)

3,579

(69)

31

-

3,542

(1,015)

2,526

Net sales
Sales to outside
customers
Inter-segment sales
and transfers

Notes:

Adjustmentson consolidated(note 1)statements ofincome (note 2)

1. Minus 1,015 million yen adjustments for the segment income or loss include 34 million yen
elimination of inter-segment sales and minus 1,049 million yen corporate expenses that are notallocated to each reportable segment. The main component of these unallocated corporate
expenses is SG&A expenses that are not attributable to reportable segments.
2. Segment income or loss adjustments are based on operating income reported on the quarterly
consolidated statements of income for the corresponding period.

10

2. Change in Reportable Segment
Hotel business, which used to be classified as Domestic operations, has increased its importance involume. Hence, from the first quarter (January 1 to March 31, 2014) of the fiscal year ending
December 31, 2014, the classification of reportable segments has been changed from the 2
segments of “Domestic operations” and “Overseas operations” into 3 reportable segments of“Domestic wedding business,” “Hotel business” and “Overseas business.”
From the third quarter (July 1 to September 30, 2014) of the current financial year, FAJA Co., Ltd.
and its 2 subsidiaries have been added to the scope of consolidation, and, as a result, a newreportable segment of “W&R business” (Wellness and Relaxation business) has been added,
increasing the number of reportable segments from 3 to 4 segments. As the date of said acquisition
has been deemed to be September 30, 2014, only their balance sheets have been consolidatedwith the Company’s in the third quarter of the current financial year.
The above segment information for the first nine months ended September 30, 2013 has been
restated in accordance with the new reportable segment for the first nine months of the fiscal year
ending December 31, 2014.
3. Impairment loss on fixed assets or goodwill by reportable segment(Significant change in the amount of goodwill)In the W&R business segment, FAJA Co., Ltd. and its 2 subsidiaries have been added to the scopeof consolidation effective from the third quarter of the current financial year, following the acquisitionof the shares of FAJA Co., Ltd. The increase in the goodwill related to the said acquisition amounts
to 1,387 million yen in the first nine months of the current fiscal year ending December 31, 2014.

11

4. Supplementary Information
Weddings Held, Orders Received, and Sales volume
1) Number of weddings held

Segment

Nine months ended
September 30, 2013

Nine months ended
September 30, 2014

Year ended
December 31, 2013

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

Domestic wedding

6,903

7,014

9,857

510

515

758

Overseas business

2,092

2,120

2,932

Total

9,505

9,649

13,547business
Hotel business

2) Orders received

Segment
Domestic wedding

Nine months ended
September 30, 2013

Nine months ended
September 30, 2014

Year ended
December 31, 2013

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

receivedbacklog(cases)(cases)(cases)(cases)(cases)(cases)

7,469

6,476

7,979

6,573

9,555

5,608

642

538

733

666

800

448

Overseas business

2,355

1,685

2,314

1,671

2,987

1,477

Total

10,466

8,699

11,026

8,910

13,342

7,533

business
Hotel business

3) Sales volume

Segment
Domestic wedding

Nine months ended
September 30, 2013

Nine months ended
September 30, 2014

Year ended
December 31, 2013

million yen

million yen

million yen

26,02825,09537,392

Hotel business

4,867

7,307

7,139

Overseas business

2,048

2,390

2,894

32,94534,79347,426business

Total

Notes: 1. Classification of reportable segments has been changed since the first three months ended
March 31, 2014. The figures for the nine months ended September 30, 2013 and for the fullyear ended December 31, 2013, have been readjusted to the new reportable segments.
2. Starting from the first three months ended March 31, 2014, those numbers of weddings held,orders received and order backlogs at the facilities in partnership with the Company have
newly been added, and therefore the figures for the nine months ended September 30,

12

2013 and for the full year ended December 31, 2013, have been readjusted and reported
accordingly.
3. Inter-segment transactions have been eliminated from the amounts shown above.
4. The above amounts do not include consumption tax.

13