〔Delayed〕The original disclosure in Japanese was released on November 10, 2022 at 15:00 (GMT+9)

November 10, 2022

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Nine Months ended September 30, 2022
(Japanese GAAP)

Stock listing: Tokyo Stock Exchange (Prime Market)
Securities code: 2418
URL: https://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 11, 2022
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, 2022
(January 1, 2022 – September 30, 2022)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)

Net sales
million yen%

Operating income

Ordinary income

million yen

million yen%%

Nine months ended
34,627
64.0
(378)
2,158
September 30, 2022
Nine months ended
21,11623.5(7,413)(6,864)September 30, 2021
Note: Comprehensive income: Nine months ended September 30, 2022: 1,521 million yen ( - %)Nine months ended September 30, 2021: (5,641) million yen ( - %)owners of the parent
million yen%

Diluted profit
per shareyen

Profitper shareyen
Nine months ended
September 30, 2022
Nine months ended
September 30, 2021

Profit attributable to

6.03

-

(123.23)-(2) Consolidated Financial Position

September 30, 2022

Total assets

Net assets

Equity ratio

million yen

million yen%

88,586

21,871

24.4

December 31, 2021
90,901
Reference: Total equity: September 30, 2022:
December 31, 2021:

20,641
21,629 million yen
20,452 million yen

22.5

287

-

(5,877)-

2. Dividends
End-Q1yen

End-Q2yenYear ended
0.00
December 31, 2021
Year ending
0.00
December 31, 2022
Year ending
December 31, 2022
(Forecast)
Note: Revisions to the latest dividends forecast: Yes

Dividend per share
End-Q3yen

Year-endyen

Annual total
yen

-

0.00

0.00

5.00

5.00

-

For details about the revisions to the dividends forecast, please refer to the November 10, 2022 news release“Notice Regarding Revisions to the Year-End Dividend Forecast (Resumption of Dividends).”

3. Earnings Forecast for the Fiscal Year ending December 31, 2022
(January 1, 2022– December 31, 2022)(Percentages indicate year-on-year changes)
Net sales
million yen
Year ending
December 31, 2022

54,100%61.8

Operating income

Ordinary income

million yen

million yen

%

3,500

-

4,800

%
-

Profit attributable toProfitowners of the parent
million yen%

per share
yen

2,280

-

47.80

Note: No revision has been made to the latest earnings forecast.

*Notes(1) Changes in significant subsidiaries during the period: None
(Changes in specific subsidiaries accompanying a change in scope of consolidation)
Newly Consolidated: None
Newly Deconsolidated: None
(2) Use of accounting methods specific to the preparation of quarterly consolidated financial statements:
Yes
Note: For details, please refer to “(3) Notes on Quarterly Consolidated Financial Statements(Application of Specific Accounting Methods for the Preparation of Quarterly Consolidated
Financial Statements)” in section “2. Quarterly Consolidated Financial Statements and Main
Notes” on page 8 in the accompanying materials.
(3) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
1) Changes in accordance with amendments to accounting standards, etc.: Yes
2) Changes other than noted in 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None(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 endof period

September 30, 2022

December 31, 2021

48,960,000

48,960,000

1,259,834

1,259,834

Nine Months ended Nine Months ended
September 30, 2022 September 30, 2021
3) Average number of shares outstanding
during the period

47,700,166

47,700,166* Quarterly earnings reports are exempt from quarterly reviews conducted by certified public accountants
or by audit firms.
*Appropriate Use of Earnings Forecast and Other Important Information(Cautionary Statement with Respect to Forward-Looking Statements)
Any forecasts and forward-looking statements given herein are based on information available as of thisreport’s publication and on certain assumptions that are deemed reasonable. These forecasts are notguarantees of future performance, and actual results may differ from forecasts due to changes in thebusiness environment. 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, 2022”
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, 2022
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 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
Consolidated Financial Statements)(Changes in Accounting Policies)(Additional Information)(Segment Information)(Revenue Recognition)
3. Supplementary Information(Weddings Held and Orders Received)

1

2
2
3
3
4
4
6
6
7
8
8
8
8
8
10
11
12
13
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1. Review of Consolidated Financial Results(1) Operating Results
Operating Results and Analysis of Financial Condition
During the first nine months of the fiscal year ending December 31, 2022, the Japanese economy has
been transitioning from the lifting of priority measures to prevent the spread of COVID-19 infections to a
new stage of living with COVID-19. However, the outlook remains uncertain due to supply chain
disruptions caused by heightened geopolitical risks, and soaring logistics costs and raw material prices.
In this environment, the Tsukada Global Holdings Group (“the Group”) focused on creating newvalue, developing high-quality and attractive outlets, providing high value-added services in the bridal,
hotel, and wellness and relaxation (W&R) markets, and taking all possible measures to prevent
coronavirus infections at all of its facilities.
The number of weddings held in the Hotel and Wedding businesses, overnight occupancy rates,
and average charge per night in the Hotel business have been on a slow recovery trend as travel
restrictions were eased in stages, and spend per wedding was also expected to recover. However,
the recovery stalled after the number of new COVID-19 cases began rising again due to the seventh
wave from July 2022, and the outlook remains clouded.
As a result, in the first nine months of 2022, the Group posted consolidated net sales of ¥34,627
million (up 64.0% year on year). The Group recorded an operating loss of ¥378 million (comparedwith a loss of ¥7,413 million a year earlier), ordinary income of ¥2,158 million yen (compared with aloss of ¥6,864 million yen a year earlier) due to the receipt of various subsidies and foreign exchange
gains from the sharp deterioration of the yen, and net income attributable to owners of the parent of¥287 million (compared with a loss of ¥5,877 million a year earlier) due to an increase in tax expenses.
The results for each business segment were as follows.
1) Wedding business
During the first nine months of fiscal 2022, a gradual recovery trend began after the priority
measures to prevent a resurgence of COVID-19 infections were lifted in March. The number of
weddings held increased sharply to 7,351 (up 68.0% year on year), and the segment posted a profit
despite the slow recovery of spend per wedding.
As a result, net sales in the Wedding business totaled ¥22,987 million (up 89.7% year on year) andsegment profit was ¥2,983 million (compared with a loss of ¥2,705 million a year earlier).
2) Hotel business
The number of hotel weddings held increased sharply to 1,152 (up 51.4% year on year) in the firstnine months of fiscal 2022. Overnight occupancy rates and average charge per night are also
recovering slowly as domestic customers and business demand gradually begins to return. However,recovery of demand from inbound tourists was limited by the easing of travel restrictions in stages,
and the segment posted a loss.
As a result, net sales in the Hotel business totaled ¥9,425 million (up 35.4% year on year) and thesegment loss was ¥2,059 million (compared with a ¥3,298 million loss a year earlier).
3) W&R businessIn the first nine months of fiscal 2022, the number of visitors, net sales, and segment profit of the
Beauty & Relax SPA-HERBS spa complex all exceeded those of the previous fiscal year; however,the British-style Queensway reflexology salons struggled to attract customers, resulting in a small
increase in segment sales, and a loss despite a recovery in profitability.
As a result, net sales in the W&R business totaled ¥2,214 million (up 8.7% year on year) andsegment loss was ¥263 million (compared with a loss of ¥373 million a year earlier).
(2) Analysis of Financial Condition
Assets, Liabilities, and Net Assets
Total assets as of September 30, 2022, the end of the first nine months of fiscal 2022, amounted to¥88,586 million, a decrease of ¥2,315 million from the end of the previous fiscal year (December 31,2021). This is mainly due to a decrease of ¥1,526 million from sales of marketable securities, and adecrease of ¥1,536 million in buildings and structures due to depreciation, respectively.
Total liabilities as of September 30, 2022 came to ¥66,714 million, a decrease of ¥3,545 million fromthe end of the previous fiscal year (December 31, 2021). The decrease mainly reflects an increase of¥2,083 million in advances received due to orders picking up in the Wedding business, offset by2

decreases of ¥2,690 million in long-term debt (including the current portion), ¥662 million in the issuanceof bonds (including the current portion), and ¥2,155 million in Other under Current liabilities.
Net assets as of September 30, 2022 totaled ¥21,871 million, an increase of ¥1,230 million from theend of the previous fiscal year. This is mainly due to increases of ¥651 million in foreign currencytranslation adjustments and ¥493 million in deferred gain on derivatives under hedge accounting.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2022
There is no change to the consolidated earnings forecasts for the full fiscal year ending December 31,
2022 as announced in the Group’s Consolidated Earnings Report for the Six Months ended June 30,
2022 released on August 10, 2022.
Note that as the impact of the COVID-19 pandemic is highly uncertain, the Company will promptly
release any revisions to its consolidated results forecasts should this become necessary due todevelopments relating to the pandemic.

3

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

December 31, 2021

September 30, 2022

AmountAmountAssetsCurrent assets
Cash and deposits
Accounts receivable - tradeMarketable securities
Merchandise
Raw materials and supplies
Other
Allowance for doubtful receivables
Total current assets

16,539
1,000
1,526
182
381
1,192
(31)
20,792

17,060
1,021
180
368
1,563
(32)
20,163Fixed assets
Tangible assets
Buildings and structures, net
LandConstruction in progress
Other, net
Total tangible assets

31,327
12,276611
1,633
45,847

29,79013,164
1,006
1,392
45,354

1,732
651
2,383

1,474
827
2,302

6,361
7,369
8,032
(107)
21,65669,887
221
90,901

6,165
7,261
7,277
(131)
20,572
68,228
193
88,586

Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Other
Allowance for doubtful receivables
Total investments and other assets
Total fixed assets
Deferred assets
Total assets

4

(millions of yen)

Liabilities
Current liabilities
Accounts payable - trade
Short-term debt
Current portion of long-term debt
Current portion of bonds
Income taxes payable
Advances received
Allowance for loss on shop closing
Asset retirement obligations
Other
Total current liabilities
Fixed liabilities
Bonds
Long-term debt
Net defined benefit liability
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 (loss) on available-for-salesecurities
Deferred gain (loss) on derivatives under hedge
accounting
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

5

December 31, 2021
AmountSeptember 30, 2022
Amount1,726
500
11,291
2,154
222
2,788
22
277
5,543
24,525

1,998
7,135
964
989
4,871
34
3,388
19,382

5,393
33,528
393
914
4,529
975
45,73470,2605,920
34,993
429
943
4,592
453
47,332
66,714472
634
20,933(892)
21,146472
634
20,929(892)
21,142

(38)

-

(584)

(91)

(64)
(6)
(694)
189
20,64190,901

586
(7)
487
241
21,871
88,586

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(millions of yen)

21,116
19,2601,856
9,270(7,413)Nine months ended
September 30, 2022
Amount34,627
24,371
10,255
10,634
(378)

87
175
508
358
151
1,281

26
152
1,292
1,794
95
3,361

343
121

353
152

136

38

131
732
(6,864)

280
824
2,158

0
0

0
3
3

24
3
28
(6,892)(1,014)(5,877)0(5,877)

0
98
13
112
2,049
1,759
290
2
287

Nine months ended
September 30, 2021
AmountNet sales
Cost of sales
Gross profit (loss)
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Gain on investments in silent partnership
Subsidy income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investments in capital
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of fixed assets
Gain on sales of memberships
Total extraordinary income
Extraordinary loss
Loss on disposal of fixed assets
Loss on sales of investment securities
Other
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

Consolidated Statements of Comprehensive Income(millions of yen)

Profit (loss)
Other comprehensive income
Net unrealized gain (loss) on available-for-salesecurities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments
Remeasurements of defined benefit plan
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to noncontrolling interests

7

Nine months ended Nine months ended
September 30, 2021 September 30, 2022
AmountAmount(5,877)
290
(9)

38

(5)

493

131
(0)

311
(1)

120

389

236
(5,641)

1,231
1,521

(5,655)

1,469

14

52

(3) 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
Consolidated 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 the previous fiscal 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 profit (loss) before income taxes for the fiscal year,
which encompasses the third quarter ended September 30, 2022, and then multiplying profit(loss) before income taxes by this estimated effective tax rate. In cases where this estimatedeffective tax rate cannot be used, the statutory effective tax rate is used.
(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020)
and related guidelines have been applied from the beginning of the first quarter of fiscal 2022. Inline with this, revenue is recognized upon the transfer of control for the promised goods orservices to customers in an amount that reflects the consideration which they expect to receive in
exchange for those goods or services.
The major changes due to the application of the Accounting Standard for Revenue
Recognition, etc. are as follows.
1) Revenue recognition related to the Wedding business
Regarding the recognition of revenue related to the Wedding business, revenue had
previously been recognized on the date on which the wedding ceremony or banquet was
held, but from the beginning of the first quarter of fiscal 2022, the recognition method has
been changed so that revenue is recognized for certain transactions at the point in time when
the handover of the goods or the delivery of the goods has been completed.

82) Revenue recognition related to the Hotel business
Regarding the recognition of revenue related to the Hotel business, revenue had previously
been recognized for each night stayed by the customer, but from the beginning of the firstquarter of fiscal 2022, the recognition method has been changed so that revenue isrecognized in line with the progress made in the provision of services.
3) Revenue recognition related to bonus points
Regarding the recognition of revenue related to the W&R business, bonus points awarded tocustomers at the time of sales had previously been recognized as selling, general andadministrative expenses, but from the beginning of the first quarter of fiscal 2022, therecognition method has been changed so that they are recognized as performanceobligations and the transaction price is allocated to the performance obligations based on thestand-alone selling price calculated considering the expected forfeiture rate, etc. of the bonus
points.
In the application of the Accounting Standard for Revenue Recognition, etc., in accordance withthe transitional treatment set forth in the proviso of Paragraph 84 of the Accounting Standard for
Revenue Recognition, the cumulative effect of retrospective application of the new accounting
policies prior to the beginning of the first quarter of fiscal 2022 was added to or subtracted fromretained earnings at the beginning of the first quarter of fiscal 2022. However, based on themethod set forth in Paragraph 86 of the Accounting Standard for Revenue Recognition, the new
accounting policies have not been retrospectively applied to the contracts in which almost all of
the revenue amount had been recognized prior to the beginning of the first quarter of fiscal 2022
in accordance with the previous treatment. In addition, based on supplementary provision (1),Paragraph 86 of the Accounting Standard for Revenue Recognition, regarding contracts modified
prior to the beginning of the first quarter of fiscal 2022, accounting treatment has been
implemented based on the contract conditions made after reflecting all the modifications to thecontracts, and the cumulative effects are added to or subtracted from retained earnings at the
beginning of the first quarter of fiscal 2022.
As a result, for the nine months ended September 30, 2022, net sales decreased by ¥47
million; cost of sales increased by ¥3 million; selling, general and administrative expenses
decreased by ¥11 million; and operating income, ordinary income and profit before income taxes
decreased by ¥39 million, respectively. In addition, the balance of retained earnings at the
beginning of the year decreased by ¥291 million.
Additionally, based on the transitional treatment set forth in Paragraph 89-2 of the AccountingStandard for Revenue Recognition, comparative information for the previous fiscal year has notbeen restated to reflect the new method of presentation. Furthermore, in accordance with thetransitional treatment set forth in Paragraph 28-15 of the "Accounting Standard for Quarterly
Financial Reporting" (ASBJ Statement No. 12, March 31, 2020), information on the
disaggregation of revenue arising from contracts with customers for the nine months ended
September 30, 2021 is not presented.

9

(Application of “Accounting Standard for Fair Value Measurement,” etc.)
The “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4,2019) and related guidelines have been applied from the beginning of the first quarter of fiscal
2022. In accordance with the transitional treatment set forth in Paragraph 19 of the AccountingStandard for Fair Value Measurement and Paragraph 44-2 of the “Accounting Standard for
Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), the new accounting policies
set forth in the Accounting Standard for Fair Value Measurement, etc., have beenprospectively applied. These changes have no impact on the quarterly consolidated financial
statements.
(Additional Information)
There are no significant changes to the assumptions regarding the impacts of the COVID-19
pandemic stated under “Additional Information” of the Consolidated Earnings Report for the
Fiscal Year ended December 31, 2021.
However, given the many uncertainties surrounding the impacts of the pandemic, theGroup’s financial position and the operating results for the fiscal year ending December 31,
2022 could be significantly affected, in the event that social and economic activities stall due tothe further spread of infections.

10(Segment Information)
I. Nine months ended September 30, 2021 (January 1 to September 30, 2021)
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

12,120

6,958

2,037

21,116-21,116

792

194

26

1,013

(1,013)-

Total

12,913

7,152

2,064

22,130(1,013)

21,116

Segment loss

(2,705)(3,298)(373)(6,376)(1,037)(7,413)

Notes: 1. Minus 1,037 million yen adjustments for the segment loss include 25 million yen elimination of intersegment sales and minus 1,062 million yen corporate expenses that are not allocated to each reportablesegment. The main component of these unallocated corporate expenses is general and administrative
expenses that are not attributable to reportable segments.
2. Segment loss adjustments are based on operating loss reported on the quarterly consolidated
statements of income for the corresponding period.

2. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable11II. Nine months ended September 30, 2022 (January 1 to September 30, 2022)
1. Net sales and income/loss by reportable segment and information on the disaggregation of revenue(millions of yen)

Reportable segment

Amountrecorded on

Weddingbusiness
Net sales
Revenue from contracts
with customers
Other revenue

Hotelbusiness

W&R
business

Total

consolidated
Adjustments

statements of(note 1)income (note 2)

22,907

9,425

2,214

34,547-34,547

80

-

-

80

-

80

22,987

9,425

2,214

34,627-

34,627

1,287

680

24

1,992

(1,992)-

Total

24,275

10,1052,239

36,620(1,992)

34,627

Segment income (loss)

2,983(2,059)

(263)

659

(1,038)(378)

Sales to outside
customers
Inter-segment sales andtransfers

Notes: 1. Minus 1,038 million yen adjustments for the segment income or loss include a 67 million yen
elimination of inter-segment sales and minus 1,105 million yen in corporate expenses that are notallocated to each reportable segment. The main component of these unallocated corporate
expenses is general and administrative 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
3. Matters related to changes in reportable segments, etc.
(Application of Accounting Standard for Revenue Recognition, etc.)
As stated in Changes in Accounting Policies, due to changes in accounting treatment for revenue
recognition as a result of the application of the Accounting Standard for Revenue Recognition,etc., similar changes have been made to the method of calculating segment income/loss. As aresult of this change, for the nine months ended September 30, 2022, net sales decreased by¥26 million in the “Wedding business,” by ¥7 million in the “Hotel business” and by ¥12 million in
the “W&R business”, respectively.
(Revenue Recognition)
Information on the disaggregation of revenue from contracts with customers is as stated in“Notes on Quarterly Consolidated Financial Statements (Segment Information)”.

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

Segment

Nine months ended
September 30, 2021

Nine months ended
September 30, 2022

Year ended
December 31, 2021

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

4,376

7,351

7,084

Hotel business

761

1,152

1,259

Total

5,137

8,503

8,343

Wedding business2) Wedding orders received
Nine months ended
September 30, 2021
Segment

Nine months ended
September 30, 2022

Year ended
December 31, 2021

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

Wedding business

5,580

7,542

7,667

7,323

7,753

7,007

Hotel business

1,006

1,423

1,191

1,260

1,302

1,221

Total

6,586

8,965

8,858

8,583

9,055

8,228

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