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

November 10, 2017

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Nine Months ended September 30, 2017
(Japanese GAAP)
Stock listing: Tokyo Stock Exchange (First Section)
Securities code: 2418
URL: http://www.tsukada-global.holdings/en/
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(shihanki hokokusho): November 14, 2017
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, 2017
(January 1, 2017 – September 30, 2017)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)
Profit attributable to

Net sales
million yen
Nine months ended
September 30, 2017
Nine months ended
September 30, 2016
Note: Comprehensive income:%Operating income
million yen%

Ordinary income
million yen%

owners of the parent
million yen%

39,833

2.6

1,346

59.9

1,445

428.1

594

-

38,8292.5

842(70.3)

273(90.4)(141)-

Nine months ended September 30, 2017: 406 million yen ( - %)Nine months ended September 30, 2016: (845) million yen ( - %)Diluted profit
per shareyen

Profitper shareyen
Nine months ended
September 30, 2017
Nine months ended
September 30, 2016

12.46

11.15

(2.93)-(2) Consolidated Financial Position

September 30, 2017

Total assets

Net assets

Equity ratio

million yen

million yen%

82,28034,14184,752
34,228December 31, 2016
Reference: Total equity: September 30, 2017: 32,579 million yen
December 31, 2016: 32,618 million yen
Total equity =Shareholders’ equity plus total accumulated other comprehensive income.

39.6
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

Ordinary income

million yen

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.

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) Application of accounting methods specific to the preparation of quarterly consolidated
financial statements: Yes
Note: For details, please refer to “(3) Notes on the Quarterly Financial Statements(Application of Specific Accounting Methods for the Preparation of Quarterly Financial
Statements)” under “2. Quarterly Consolidated Financial Statements and Main Notes” onpage 8 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 the end of theperiod (including treasury stock)2) Number of shares held in treasury stock at
the end of the period

3) Average number of shares outstanding
during the period

September 30, 2017

December 31, 2016

48,960,000

48,960,000

1,259,834

1,259,834

Nine Months ended
September 30, 2017

Nine Months ended
September 30, 2016

47,700,166

48,212,951* 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) Notes on the Quarterly 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
8
8
8
8
9
11

1. Review of Consolidated Financial Results(1) Operating Results
In the first nine months of the fiscal year ending December 31, 2017, the Japanese economy
followed a moderate recovery path in light of the improvement in personal spending, corporate
earnings and employment conditions stemming from the favorable impact of the government’s
various economic policies. Still, the future outlook remained unclear due to uncertainties over the
direction of the economies and policies of China and other emerging Asian countries.
In this environment, the Group endeavored to increase sales and profitability by accurately
responding to increasingly individualized and diversifying customer needs in the bridal, hotel, andwellness and relaxation (W&R) markets while working to create new value in those markets todevelop high-quality, extremely appealing outlets, and to provide high value-added services.
Based on this policy, Tsukada Global Holdings Inc. (“the Company”) has taken steps this term toexpand its earnings and geographical operating areas with its first foray into Okinawa Prefecture,
preparations for the opening of its new outlet “The Strings Omotesando” (Minato Ward, Tokyo)
and ArtGrace Next (Ashiya, Hyogo Prefecture), the opening of its comprehensive fitness club
“Best Style Fitness” (Urayasu, Chiba Prefecture) in September 2017 and so forth.
As a result of these efforts, in the first nine months of the fiscal year ending December 31, 2017,
the Company posted consolidated net sales of ¥39,833 million (up 2.6% year on year). It posted
an operating income of ¥1,346 million (up 59.9% from a year earlier), ordinary income of ¥1,445
million (up 428.1%) and profit of ¥594 million (versus a loss of ¥141 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 nine months of fiscal 2017, although the number of weddings held at its guesthousesin Japan, a core business, declined, wedding business sales rose slightly year on year
underpinned by an increase in the number of weddings overseas. Income in this segment alsorose from the impact of cost-cutting measures implemented from the previous year.
As a result, net sales in the wedding business were ¥24,338 million (up 1.0% year on year),and segment operating income was ¥2,584 million (up 0.8% from a year earlier).
b. Hotel businessIn the first nine months of fiscal 2017, sales of the hotel business rose thanks to a slight increasein the number of weddings held at its hotels as well as generally steady increases in theovernight accommodation occupancy rate and average customer spend. Income in thesegment increased in the absence of outlet-opening expenses and due to the effect of its costcutting efforts as was the case in the wedding business.
As a result, net sales in the hotel business reached ¥12,803 million (up 2.3% year on year),while segment operating income totaled ¥318 million (up 214.4% from a year earlier).
c. W&R business (Wellness & Relaxation business)
In the first nine months of fiscal 2017, sales increased reflecting the full nine-month term
operation of the spa complex - Beauty & Relax SPA-HERBS. However, in terms of profitability,
the Company posted a loss from the booking of expenses from the opening of thecomprehensive fitness club “Best Style Fitness”
As a result, net sales in the W&R business came to ¥2,691 million (up 21.3% year on year),while segment operating loss totaled ¥271 million (versus a segment loss of ¥349 million a year
earlier).

2(2) Analysis of Financial Condition
1) Assets, Liabilities, and Net Assets
Total assets at the end of the first nine months of fiscal year 2017 (September 30, 2017)
amounted to ¥82,280 million, a decrease of ¥2,472 million from the end of the previous fiscal
year (December 31, 2016). The change largely reflects a ¥3,083 million yen decrease in cash
and deposits primarily due to the early redemption of convertible bonds with stock acquisitionrights and a ¥522 million decrease in buildings and structures from depreciation andamortization. These decreases eclipsed a ¥1,268 million increase in other tangible assets(mainly construction in progress) from the construction of “The Strings Omotesando.”
Liabilities at the end of the first nine months of the fiscal year came to ¥48,139 million, adecrease of ¥2,384 million from the end of the previous fiscal year. The decline is chiefly
attributable to a decrease of ¥4,500 million in convertible bonds with stock acquisition rights due
to early redemption which outweighed a ¥2,020 million increase in short-term debt to raise working
capital.
Net assets at the end of the first nine months of the fiscal year totaled ¥34,141 million, ¥87
million less than at the end of the previous fiscal year. The change reflects a decrease of ¥477
million due to dividends paid to shareholders and a reduction of ¥163 million in foreign currencytranslation adjustments which helped offset ¥594 million in profit attributable to owners of theparent and a ¥117 million increase in retained earnings.

(3) Earnings Forecast for the Fiscal Year Ending December 31, 2017
There is no change to the consolidated earnings forecasts for the year ending December 31,
2017 that the Company reported in its second quarter Consolidated Earnings Report dated
August 10, 2017.

3

2. Quarterly Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheets

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
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

December 31, 2016
Amount(millions of yen)
September 30 2017
Amount15,468
966
114
506
2,008
(64)
19,00012,385
1,021
115
545
2,427
(43)
16,451

23,597
21,1562,585
47,33823,074
20,8603,853
47,788

2,271
272
2,543

2,071
248
2,319

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

2,979
8,679
3,974
15,63365,742
8682,280December 31, 2016
Amount(millions of yen)
September 30, 2017
Amount2,362
13,062
824

2,411
2,020
9,742
744

Liabilities
Current liabilities
Accounts payable - trade
Short-term debt
Current portion of long-term debt
Current portion of bonds
Current portion of convertible bonds with stockacquisition rights
Income taxes payable
Advances received
Other
Total current liabilities

-

500

1,112
1,336
3,366
22,065

460
2,191
3,553
21,622

Fixed 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 liabilities

3,684
5,000
15,747
332
702
2,339
652
28,45950,5243,500
18,930
350
729
2,364
641
26,516
48,139Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

472
634
32,090(892)
32,304472
634
32,208(892)
32,422

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

(50)
212
(4)
157
1,561
34,141
82,2805

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(millions of yen)
Nine months
Nine months
ended September ended September
30, 2016
30, 2017
AmountAmount38,82939,833
Net sales
Cost of sales
27,72027,753
11,10912,080Gross profit
10,266
10,733
Selling, general and administrative expenses
842
1,346
Operating income
Non-operating income
Interest income
39
28
Dividend income
29
23
Gain on investments in silent partnership
152
163
Gain on redemption of investment securities
122
Real estate rental income
92
189
Foreign exchange gains
78
Other
91
88
Total non-operating income
527
571
Non-operating expenses
Interest expenses
182
163
Loss on valuation of derivatives
270
189
Foreign exchange loss
593
Other
49
119
Total non-operating expenses
1,096
472
273
1,445
Ordinary income
Extraordinary Income
Gain on sales of fixed assets
10Gain on sales of investment securities
1
Reversal gains of provisions for directors’ retirement14
benefits
Reversal gains of provisions for shop closing expenses
4
Total extraordinary income
20
1
Extraordinary loss
Loss on disposal of fixed assets
56
11
Loss on sales of investment securities
117
10
Impairment loss
149
Other
2
0
Total extraordinary loss
177
171
116
1,276
Profit before income taxes
267
661
Income taxes
(150)
614
Profit (loss) for the period(9)19Profit (Loss) attributable to non-controlling interests
(141)
594
Profit (loss) attributable to owners of the parent

6

Consolidated Statements of Comprehensive Income

Profit (loss) for the period
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 noncontrolling interests

7

Nine months
ended September
30, 2016
Amount(150)(millions of yen)
Nine months
ended September
30, 2017
Amount
614

(78)
(614)
(0)
(694)
(845)

8
(215)
(0)
(207)
406

(721)

438

(123)

(32)

(3) Notes on the Quarterly 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 the effective
tax rate after applying tax-effect accounting to income before income taxes for the fiscal
year, which encompasses the third quarter ended September 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.

8

(Segment Information)【Segment Information】
I. Nine months ended September 30, 2016 (January 1 to September 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

24,093

12,516

2,219

38,829-38,829

877

301

0

1,178

(1,178)-

Total

24,97012,8172,219

40,008(1,178)38,829Segment income (loss)

2,565

101

(349)

2,317

(1,474)842

Notes:

1. Minus 1,474 million yen adjustments for the segment income or loss include 15 million yen
elimination of inter-segment sales and minus 1,490 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 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.

9II. Nine months ended September 30, 2017 (January 1 to September 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

24,33812,803

2,691

39,833-39,833

900

226

0

1,126

(1,126)-

Total

25,23913,0292,691

40,960(1,126)

39,833

Segment income (loss)

2,584

318

(271)

2,630

(1,284)

1,346

Notes:

1. Minus 1,284 million yen adjustments for the segment income or loss include 24 million yen
elimination of inter-segment sales and minus 1,309 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 recovery of theinvestment in these assets could not likely be made. Hence, the book value of these assets
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 beenreported respectively in the first nine months of the fiscal year ending December 31, 2017.

10

3. Supplementary Information
Weddings Held and Orders Received
1) Number of weddings held
Nine months ended
September 30, 2016

Nine months ended
September 30, 2017

Year ended
December 31, 2016

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

Segment
Wedding business

7,925

8,238

11,401

Hotel business

1,262

1,268

1,799

Total

9,187

9,506

13,2002) Wedding orders received
Nine months ended
September 30, 2016
Segment

Nine months ended
September 30, 2017

Year ended
December 31, 2016

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

Wedding business

9,191

7,282

9,741

7,681

11,563

6,178

Hotel business

1,417

1,397

1,394

1,383

1,814

1,257

Total

10,608

8,679

11,135

9,064

13,3777,435

11