〔Delayed〕The original disclosure in Japanese was released on August 10, 2017 at 15:00 (GMT+9)

August 10, 2017

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Six Months ended June 30, 2017
(Japanese GAAP)
Stock listing: Tokyo Stock Exchange (First Section)
Securities code: 2418
URL: http://www.tsukada-global.holdings
Representative: Masayuki Tsukada, President and CEO
Information contact: Masahiro Yamazaki, Manager, Finance &Tel:+81-3-5464-0081
Accounting Department
Scheduled dates:
Filing of statutory quarterly financial report (sihanki hokokusho): August 14, 2017
Dividend payout:
September 4, 2017
Supplementary materials to quarterly financial results available: Yes
Quarterly earnings presentation held: Yes (Targeted at institutional investors and analysts)(Amounts rounded down to the nearest million yen)

1. Consolidated Performance for the Six Months ended June 30, 2017
(January 1, 2017 – June 30, 2017)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)
Profit attributable to

Net sales
million yen%

Ordinary income
million yen%

Operating income
million yen%

Six months ended
26,171
1.0
753
112.2
691
June 30, 2017
Six months ended
25,9104.8
354(77.4)(269)
June 30, 2016
Note: Comprehensive income: Six months ended June 30, 2017: -96 million (-%)
Six months ended June 30, 2016: -1,000 million yen (- %)owners of the parent
million yen
%
-

159

-

-

(389)

-

Diluted profit
per shareyen

Profitper shareyen
Six months ended
June 30, 2017
Six months ended
June 30, 2016

3.34

2.98

(8.00)-(2) Consolidated Financial Position

June 30, 2017

Total assets

Net assets

Equity ratio

million yen

million yen%

84,03933,87684,752
34,228December 31, 2016
Reference: Total equity: June 30, 2017:32,330 million yen
December 31, 2016: 32,618 million yen
Total equity =Shareholders’ equity plus total accumulated other comprehensive income.

38.5
38.5

2. Dividends
End-Q1yen

End-Q2yen

Dividend per share
End-Q3yen

Year ended
5.00
December 31, 2016
Year ending
5.00
December 31, 2017
Year ending
December 31, 2017
(Forecast)
Note: No revision has been made to the latest dividends forecast.

Year-endyen

Annual total
yen

-

5.00

10.00

-

5.00

10.00

3. Earnings Forecast for the Fiscal Year ending December 31, 2017
(January 1, 2017 – December 31, 2017)(Percentages indicate year-on-year changes)

Net sales
million yen%

Operating income
million yen%

Year ending
60,600
9.5
4,300
22.3
December 31, 2017
Note: No revision has been made to the latest earnings forecast.

Ordinary income
million yen
%
4,500

25.0

Profit attributable toProfitowners of the parent
million yen%

per share
yen

2,800

43.4

*Notes(1) Changes affecting the consolidation status of significant subsidiaries during the period: None
(2) Use of accounting methods specific to the preparation of quarterly consolidated financial
statements: Yes
Note: For details, please refer to “(4) Notes on Quarterly Consolidated Financial Statements(Application of Specific Accounting Methods for the Preparation of Quarterly Financial
Statements)” under “2. Quarterly Consolidated Financial Statements and Main Notes” onpage 10 in the accompanying material.
(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

58.70

(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
period3) Average number of shares outstanding during
the period

June 30, 2017

December 31, 2016

48,960,000

48,960,000

1,259,834

1,259,834

Six Months ended
June 30, 2017

Six Months ended
June 30, 2016

47,700,166

48,689,871* Quarterly Earnings Report is exempt from the review requirements.
*Appropriate Use of Earnings Forecast and Other Important Information(Cautionary Statement with Respect to Forward-Looking Statements)
The above forecasts are based on information available as of this report’s publication and on
certain assumptions that are deemed reasonable. These forecasts are not guarantees of future
performance, and actual results may differ from forecasts due to changes in the businessenvironment. For the assumptions underlying the forecasts herein and other notice on the use of
earnings forecasts, please refer to “(3) Earnings Forecast for the Fiscal Year ending December 31,
2017” in the section “1. Review of Consolidated Financial Results” on page 3 in the accompanying
materials.

Accompanying Material – Contents
1. Review of Consolidated Financial Results(1) Operating Results(2) Analysis of Financial Condition(3) Earnings Forecast for the Fiscal Year ending December 31, 2017
2. Quarterly Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income(3) Consolidated Statements of Cash Flows(4) Notes on Quarterly Consolidated Financial Statements(Note on the Going-concern Assumption)(Note on Significant Changes in the Amount of Shareholders’ Equity)(Application of Specific Accounting Methods for the Preparation of Quarterly Financial
Statements)(Additional Information)(Segment Information)
3. Supplementary Information

1

2
2
3
3
4
4
6
6
7
8
10
10
10
10
10
11
13

1. Review of Consolidated Financial Results(1) Operating Results
In the first six months of the fiscal year ending December 31, 2017, the Japanese economy
remained on a modest recovery track, thanks to the improvement in personal spending,corporate earnings and employment situation due to the favorable impact of thegovernment’s various economic policies. That said, the future outlook remains unclear given
the uncertainties over the direction of the Chinese and other Asian economies and policies.
In this environment, the Group endeavored to increase sales and profitability byaccurately responding to increasingly individualized and diversifying customer needs in thebridal, hotel, and wellness and relaxation (W&R) markets while working to create new value
in these markets, to develop high-quality, extremely appealing outlets, and to provide highvalue-added services.
Based on this policy, the Company has taken steps to expand its earnings andgeographical operating areas with its first foray into Okinawa Prefecture and preparations forthe opening of its new outlet “The Strings Omotesando” (Minato Ward, Tokyo) andcomprehensive fitness club “Best Style Fitness” (Urayasu, Chiba Prefecture) in its W&R
business.
As a result of these efforts, in the first six months of the fiscal year ending December 31,
2017, Tsukada Global Holdings Inc. (“the Company”) posted consolidated net sales of¥26,171 million (up 1.0% year on year). The company posted an operating income of ¥753
million (up 112.2% from a year earlier), ordinary income of ¥691 million (compared with aloss of ¥269 million a year earlier) and net income of ¥159 million (versus a loss of ¥389
million a year earlier) attributable to owners of the parent in the period under review

The results for each business segment were as follows.
a. Wedding businessIn the first six months of fiscal 2017, sales fell slightly owing to a decline from the previous
year in the number of weddings held at our guesthouses, a core business. However,income in this segment rose from the impact of cost-cutting measures implemented lastyear.
As a result, net sales in the wedding business were ¥15,952 million (down 0.5% year onyear), and segment operating income was ¥1,616 million (up 7.6% from a year earlier).
b. Hotel businessIn the first six months of fiscal 2017, sales of the hotel business rose, despite a slightdecrease in the number of weddings held, underpinned by the generally steady increases
in the overnight accommodation occupancy rate and average customer spend. Income inthe segment rose in the absence of outlet-opening expenses and due to the effect of ourcost-cutting efforts.
As a result, net sales in the hotel business reached ¥8,533 million (up 0.3% year onyear), while segment operating income totaled ¥240 million (up 32.5% from a year
earlier).
c. W&R business (Wellness & Relaxation business)
In the first six months of fiscal 2017, sales increased reflecting the full six-month term
operation of the spa complex - Beauty & Relax SPA-HERBS.
As a result, net sales in the W&R business came to ¥1,685 million (up 22.9% year onyear), while segment operating loss totaled ¥235 million (versus a segment loss of ¥269
million a year earlier).

2(2) Analysis of Financial Condition
1) Assets, Liabilities, and Net Assets
Total assets at the end of the first half of fiscal year 2017 (June 30, 2017) amounted to¥84,039 million, a decrease of ¥713 million from the end of the previous fiscal year
(December 31, 2016). The decline is chiefly attributable to a ¥596 million decrease intangible assets and ¥154 million decline in intangible assets, owing to depreciation andamortization expenses as well as an impairment loss.
Liabilities at the end of the first six months of the fiscal year came to ¥50,163 million, adecrease of ¥361 million compared with the end of the previous fiscal year. The declinereflects a decrease of ¥424 million in income taxes payable and a ¥413 million decline inother current liabilities partly due to a decrease in accounts payable, which eclipsed theimpact of a net increase of ¥460 million in advances received.
Net assets at the end of the first half totaled ¥33,876 million, ¥352 million less than at theend of the previous fiscal year. The change is largely attributable to a decrease of ¥79
million in retained earnings owing to ¥238 million in year-end dividends paid to shareholders
in the previous fiscal year and a reduction of ¥195 million in foreign currency translation
adjustments which offset ¥159 million in profit attributable to owners of the parent.
2) Cash flow
Cash and cash equivalents (“cash”) at the end of the first half totaled ¥15,360 million, ¥20
million less than at the end of the previous fiscal year.
Cash flows and factors behind changes in the cash flows during the six months ended
June 30, 2017, are as follows.
(Operating Cash Flow)
Cash provided by operating activities totaled ¥1,955 million, an increase of 34.6% fromthe first half of the previous fiscal year. This is largely ascribed to ¥1,660 million in
depreciation and amortization expenses, ¥531 million in profit before income tax, and a¥466 million increase in advances received which offset the impact of ¥1,130 million inincome taxes paid.
(Investing Cash Flow)
Cash used in investing activities totaled ¥1,678 million, a decrease of 79.7% from thesame period of the previous fiscal year. The decline is mainly attributable to the ¥1,651
million purchase of tangible assets.
(Financing Cash Flow)
Cash used in financing activities totaled ¥238 million (cash acquired in the first half of theprevious year was ¥3,974 million). This chiefly reflects ¥5,995 million in repayments oflong-term debt, ¥412 million in payments for the redemption of bonds and ¥238 million in
dividends paid to shareholders, which eclipsed the impact of ¥5,943 million in net
proceeds from long-term debt and ¥488 million in proceeds from issuance of bonds.
(3) Earnings Forecast for the Fiscal Year ending December 31, 2017
Changes to the Company’s forecast for full-year earnings for the fiscal year ending
December 31, 2017, based on the results for the first six months of the year, wereannounced on August 7, 2017 in a corporate news release entitled “Revision ofConsolidated Results Forecast for the First Six Months”. Going forward, changes in themarket environment are expected, and the Company will release any revisions to its
earnings forecasts that result from these changes in a timely manner.

3

2. Quarterly Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheets
December 31, 2016
AmountAssetsCurrent 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
Investment securities
Lease and guarantee deposits
Other
Total investments and other assets
Total fixed assets
Deferred assets
Total assets

4(millions of yen)
June 30, 2017
Amount15,468
966
114
506
2,008
(64)
19,00015,448
867
142
103
565
2,144
(40)
19,23023,597
21,1562,585
47,33822,97220,804
2,965
46,742

2,271
272
2,543

2,138
250
2,388

3,058
8,649
4,062
15,77165,65398
84,752

2,936
8,678
3,963
15,57864,71098
84,039December 31, 2016
AmountLiabilities
Current liabilities
Accounts payable - trade
Current portion of long-term debt
Current portion of bonds
Income taxes payable
Advances received
Other
Total current liabilities(millions of yen)
June 30, 2017
Amount2,362
13,062
824
1,112
1,336
3,366
22,065

2,270
9,767
886
687
1,797
2,953
18,362

3,684
5,000
15,747
332
702
2,339
652
28,45950,5243,710
5,000
18,990
359
720
2,359
660
31,80050,163

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

472
634
32,090(892)
32,304472
634
32,011(892)
32,225

Accumulated other comprehensive income
Net unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plan
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

(58)
376
(3)
313
1,610
34,22884,752

(70)
180
(4)
105
1,545
33,87684,039Fixed liabilities
Bonds
Convertible bonds with stock acquisition rights
Long-term debt
Net defined benefit liability
Provision for directors’ retirement benefits
Asset retirement obligations
Other
Total fixed liabilities
Total liabilities5(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 income
Non-operating income
Interest income
Dividend income
Gain on investments in silent partnership
Gain on redemption of investment securities
Real estate rental income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income or (loss)
Extraordinary Income
Gain on sales of fixed assets
Reversal gains of provisions for directors’ retirement
benefits
Reversal gains of provisions for shop closing expenses
Total extraordinary gain
Extraordinary loss
Loss on disposal of fixed assets
Shop closing expenses
Loss on sales of investment securities
Impairment loss
Total extraordinary loss
Profit (loss) before income taxes
Income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of the parent

6

Six months
ended June 30,
2016
Amount25,91018,574
7,336
6,981
354

Six months
ended June 30,
2017
Amount26,171
18,275
7,895
7,142
753

30
18
74
122
36
44
326

17
13
80
122
54
41
329

124
256
539
29
950
(269)

115
195
79
390
691

0

0

14

-

3
17

0

48
1
117
167
(419)
(15)
(404)
(15)
(389)

10
0
149
160
531
358
173
13
159

Consolidated Statements of Comprehensive Income

Profit (loss)
Other comprehensive income
Net unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plan
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to non-controllinginterests

7

Six months
ended June 30,
2016
Amount(404)(millions of yen)Six months
ended June 30,
2017
Amount
173

(78)
(516)
(0)
(596)
(1,000)

(11)
(257)
(0)
(270)
(96)

(894)

(48)

(106)

(48)

(3) Consolidated Statements of Cash Flows(millions of yen)Six months
ended June 30,
2016
AmountCash flows from operating activities
Profit (loss) before income taxes
Depreciation and amortization
Amortization of goodwill
Amortization of bond issuance expenses
Loss on disposal of fixed assets
Loss (gain) on valuation of derivatives
Loss (gain) on redemption of investment securities
Loss (gain) on sales of investment securities
Increase (decrease) in allowance for doubtfulreceivables
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors’
retirement benefits
Interest and dividend income
Interest expenses(Gain) loss on investments in silent partnership
Foreign exchange (gain) loss
Impairment loss
(Increase) decrease in notes and accounts receivable trade(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in advances received
Increase (decrease) in other liabilities
Other
Sub totalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

8

Six months
ended June 30,
2017
Amount

(419)
1,724
133
10
48
256
(122)
117

531
1,660
133
11
10
195
-

0

(23)

20

26

(6)

18

(48)
124
(74)
517
-

(30)
115
(80)
(57)
149

23

13

21

(47)

(124)

(68)

551
(228)
355
2,881
44
(125)
(1,347)
1,452

466
(304)
456
3,177
22
(114)
(1,130)1,955

Six months
ended June 30,
2016
AmountCash flows from investing activities
Purchase of tangible assets
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from redemption of investment securities
Proceeds from withdrawal of investment in silent
partnership
Loans receivableCollection of loans receivable
Lease and guarantee deposits
Collection of lease and guarantee deposits
Purchase of long-term prepaid expenses
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds
Payments for redemption of bonds
Purchase of treasury stock
Dividends paid to non-controlling interests
Dividends paid to shareholders
Proceeds from stock issuance to non-controllinginterests
Purchase of subsidiaries’ shares not resulting inchange in scope of consolidation
Other
Net cash provided by (used in) financing activities
Foreign currency translation adjustments on cash
and cash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents, beginning of period
Increase in cash and cash equivalents, resulting
from new consolidation of a subsidiary
Cash and cash equivalents, end of period

9

Six months
ended June 30,
2017
Amount(8,958)
(82)
(300)
493
436

(1,651)
(26)
(257)
26
-

311

279

(106)
1
(155)
175
(49)
(23)
(8,256)

(20)
39
(111)
4
(0)
40
(1,678)4,200(1,575)
977
(362)
(307)
(244)

5,943
(5,995)
488
(412)
(16)
(238)

1,335

-

(44)

-

(4)
3,974

(7)
(238)

(65)

(58)

(2,895)(20)

17,863

15,380249-

15,21815,360(4) Notes on Quarterly Consolidated Financial Statements(Note on the Going-concern Assumption)
Not applicable(Note on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(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
calculated by allocating a quarterly proportion of the amount for the full fiscal 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 fiscal
year, and therefore the calculations are based on future earnings forecasts from theprevious year and tax planning methods.
(Special accounting treatments)
Calculation of taxes
The Company calculates tax liabilities by producing a reasonable estimate of theeffective tax rate after applying tax-effect accounting to income before income taxes forthe fiscal year, which encompasses the second quarter ended June 30, 2017, and thenmultiplying profit (loss) before income taxes by this estimated effective tax rate. In cases
where this estimated effective tax rate cannot be used, the statutory effective tax rate isused.
(Additional Information)(Application of the Implementation Guidance on Recoverability of Deferred Tax Assets)
The Company has applied the “Implementation Guidance on Recoverability of Deferred
Tax Assets” (ASB Guidance No 26, March 28, 2016), effective from the three months
ended March 31, 2017.

10

(Segment Information)[Segment Information]
I. Six months ended June 30, 2016 (January 1 to June 30, 2016)
1. Net sales and income/loss by reportable segment(millions of yen)

Reportable segment
AmountWeddingbusinessHotelbusiness

W&R
business

Total

Adjustments(note 1)

recorded on
consolidated
statements ofincome (note 2)

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

16,027

8,512

1,371

25,910-25,910

605

203

-

808

(808)

-

Total

16,632

8,716

1,371

26,719(808)

25,910

Segment income (loss)

1,502

181

(269)

1,415

(1,060)354

Notes:

1. Minus 1,060 million yen adjustments for the segment income or loss include 11 million yen
elimination of inter-segment sales and minus 1,071 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. Six months ended June 30, 2017 (January 1 to June 30, 2017)
1. Net sales and income/loss by reportable segment(millions of yen)

Reportable segment
AmountWeddingbusinessHotelbusiness

W&R
business

Total

Adjustments(note 1)

recorded on
consolidated
statements ofincome (note 2)

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

15,952

8,533

1,685

26,171-

26,171

591

142

-

734

(734)

-

Total

16,544

8,676

1,685

26,905(734)

26,171

Segment income (loss)

1,616

240

(235)

1,622

(869)

753

11

Notes:1. Minus 869 million yen adjustments for the segment income or loss include 14 million yen
elimination of inter-segment sales and minus 884 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(Significant impairment loss on fixed assets)
As decreased profitability has remained in some fixed assets held in the “Wedding
business” and “W&R business” segments, the Company has concluded that the recoveryof the investment in these assets could not likely be made during the course of the first six
months of the fiscal year ending December 31, 2017. Hence, the book value of theseassets has been written down to the recoverable amount, while the resulting extraordinary
loss has been reported as impairment loss. Accordingly, the impairment loss of 139 million
yen in the “Wedding business” segment and 10 million yen in the “W&R business” segment
has been reported respectively in the first six months of the fiscal year ending December 31,
2017.

12

3. Supplementary Information
Weddings Held and Orders Received
1) Number of weddings held

Segment

Six months ended
June 30, 2016

Six months ended
June 30, 2017

Year ended
December 31, 2016

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

Wedding business
Hotel business
Total

5,269

5,367

11,401

862

843

1,799

6,131

6,210

13,2002) Wedding orders received

Segment
Wedding business
Hotel business
Total

Six months ended
June 30, 2016

Six months ended
June 30, 2017

Year ended
December 31, 2016

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

6,324

7,071

6,823

7,634

11,563

6,178

959

1,339

957

1,371

1,814

1,257

7,283

8,410

7,780

9,005

13,3777,435

13