〔Delayed〕The original disclosure in Japanese was released on February 14, 2023 at 15:00 (GMT+9)

February 14, 2023

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Fiscal Year ended December 31, 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:
Annual general meeting of shareholders:March 30, 2023
Filing of statutory year-end financial report:
March 30, 2023
Dividend payout:
March 31, 2023
Supplementary materials to year-end financial results available: Yes
Year-end earnings presentation held: Yes (targeted at institutional investors andanalysts)(Amounts rounded down to the nearest million yen)

1. Consolidated Performance for the Fiscal Year ended December 31, 2022
(January 1, 2022 – December 31, 2022)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)

Net sales
million yen%

Operating income

Ordinary income

million yen

million yen%%

Profit attributable toowners of the parent
million yen%

Year ended
51,699
54.6
2,976
4,758
1,498
December 31, 2022
Year ended
33,42923.3(6,391)(5,452)(6,137)
December 31, 2021
Note: Comprehensive income: Year ended December 31, 2022: 2,736 million yen ( - %)Year ended December 31, 2021: (5,796) million yen ( - %)Diluted profit
Ordinary income
Operating income
ProfitReturn on equity
per shareper share
to total assets
to net sales
yen
yen
%
%
%
Year ended
31.42
6.9
5.3
5.8
December 31, 2022
Year ended(128.67)(26.3)(5.7)(19.1)
December 31, 2021
Reference: Equity in (earnings) losses of affiliates:
Year ended December 31, 2022: (93) million yen
Year ended December 31, 2021: (178) million yen(2) Consolidated Financial Position

December 31, 2022
December 31, 2021
Reference: Total equity:

Total assets
million yen
87,472

23,08626.1

Net assets per shareyen
479.3920,64122.5

428.77

Net assets
million yen

90,901
December 31, 2022: 22,866 million yen
December 31, 2021: 20,452 million yen

Equity ratio%

(3) Consolidated Cash Flows
Cash flows fromoperating activities
Year ended
December 31, 2022
Year ended
December 31, 2021

million yen

million yen

million yen

7,958

2,077

(5,420)21,149(899)(1,916)(2,978)16,451

2. Dividends

Year ended
December 31, 2021
Year ended
December 31, 2022
Year ending
December 31, 2023
(Forecast)

Dividend per share

Total
dividends

Dividend
payout ratio(consolidated)

million yen%

Rate of total
dividend to
net assets(consolidated)%

End-Q1yen

End-Q2yen

End-Q3yen

Year-endyen

Annual total
yen

-

0.00

-

0.00

0.00

-

-

-

-

0.00

-

5.00

5.00

238

15.9

1.1

-

5.00

-

5.00

10.00

3. Earnings Forecast for the Fiscal Year ending December 31, 2023
(January 1, 2023 – December 31, 2023)
Net sales
Six months ending
June 30, 2023
Year ending
December 31, 2023

Cash and cash
equivalents at end of
periodmillion yen

Cash flows fromfinancing activities

Cash flows frominvesting activities

million yen

%

16.3

(Percentages indicate year-on-year changes)
Profit attributable toProfit%owners of the parent
million yen%

per shareyen

Operating income

Ordinary income

million yen

million yen%

26,490

17.5

786

-

614

(54.1)

293

-

6.14

57,990

12.2

4,508

51.5

4,171

(12.3)

2,927

95.3

61.36

*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) 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(3) 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

December 31, 2022

December 31, 2021

48,960,000

48,960,000

1,259,834

1,259,834

Year ended
December 31, 2022

Year ended
December 31, 2021

47,700,166

47,700,166* This Earnings Report is exempt from auditing conducted by certified public accountants or byauditing 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 “(4) Earnings Forecast for the Fiscal Year ending December 31, 2023”
in the section “1. Review of Consolidated Financial Results” on page 2 in the accompanying materials.
(Presentation Handout Materials)
The Company has scheduled an earnings presentation targeted at institutional investors and analysts on
February 20, 2023.
The presentation handout materials will be posted on the Company's website immediately after the event.

Accompanying Material – Contents
1. Review of Consolidated Financial Results(1) Operating Results(2) Analysis of Financial Condition(3) Overview of Cash Flows(4) Earnings Forecast for the Fiscal Year ending December 31, 2023
2. Basic Views on Adoption of Accounting Standards
3. 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 Changes in Net Assets(4) Consolidated Statements of Cash Flows(5) Notes on Consolidated Financial Statements(Note on the Going-concern Assumption)(Changes in Accounting Policies)(Segment Information)(Revenue Recognition)(Per Share Information)(Significant Subsequent Events)
4. Other Information(1) Changes in Officers(2) Weddings Held and Orders Received

1

2
2
3
3
4
5
6
6
8
8
9
10
12
14
14
14
16
19
19
19
20
20
20

1. Review of Consolidated Financial Results(1) Operating Results
In the fiscal year ended December 31, 2022, the Japanese economy has been transitioning fromthe lifting of priority measures to prevent the spread of COVID-19 infections to a new stage of livingwith COVID-19, and there are expectations that it will recover thanks to a recent shift in policies.
However, the outlook remains uncertain due to supply chain disruptions caused by heightened
geopolitical risks, soaring logistics costs, and rising prices for raw materials and energy.
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 thebridal, hotel, and wellness and relaxation (W&R) markets, and taking all possible measures toprevent 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, and spend per wedding was also expected to recover. However, therecovery stalled after the number of new COVID-19 cases began rising again in July, and theoutlook remains clouded.
As a result, in the fiscal year ended December 31, 2022, the Group posted consolidated net salesof ¥51,699 million (up 54.6% year on year). The Group recorded operating income of ¥2,976 million(compared with a loss of ¥6,391 million a year earlier), ordinary income of ¥4,758 million (comparedwith a loss of ¥5,452 million a year earlier) due to the receipt of various subsidies and foreignexchange gains from the sharp deterioration of the yen, and net income attributable to owners of theparent of ¥1,498 million (compared with a loss of ¥6,137 million a year earlier) due to an increase intax expenses.
The results for each business segment were as follows.
1) Wedding businessIn fiscal 2022, the number of weddings increased sharply to 10,837 (up 53.0% year on year)
due to a steady recovery trend after the lifting of priority measures to prevent the spread of
COVID-19 infections in March. Spend per wedding was slow to recover, but the segment posted
a profit.
As a result, net sales in the Wedding business totaled ¥34,182 million (up 69.5% year on year)
and segment profit was ¥6,154 million (compared with a segment loss of ¥715 million a year
earlier).
2) Hotel business
The number of hotel weddings held increased sharply to 1,660 (up 31.9% year on year). Overnightoccupancy 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 inboundtourists was limited, and the segment posted a loss.
As a result, net sales in the Hotel business totaled ¥14,554 million (up 38.3% year on year) andsegment loss was ¥1,441 million (compared with a loss of ¥3,780 million a year earlier).

23) W&R businessIn fiscal 2022, the number of visitors, net sales and segment profit of the Beauty & Relax SPAHERBS 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 insegment sales, and a loss despite a recovery in profitability.
As a result, net sales in the W&R business totaled ¥2,961 million (up 8.3% year on year) andsegment loss was ¥334 million (compared with a loss of ¥525 million a year earlier).
(2) Analysis of Financial Condition(Assets)
Total assets at the end of fiscal 2022 (December 31, 2022) amounted to ¥87,472 million, a decreaseof ¥3,429 million from the end of the previous fiscal year (December 31, 2021). The decrease mainlyreflects a ¥4,698 million increase in cash and deposits offset against a ¥2,731 million decrease in land
due to land sales, a ¥2,243 million decrease in buildings and structures from depreciation, and a¥1,555 million decrease in deferred tax assets.
(Liabilities)
Total liabilities at the end of fiscal 2022 came to ¥64,386 million, a decrease of ¥5,873 million from theend of the previous fiscal year. The decrease is chiefly attributable to a decrease of ¥3,990 million in
long-term debt (including the current portion), ¥879 million in the redemption of bonds (including thecurrent portion), and ¥1,243 million in Other under Current liabilities.
(Net Assets)
Net assets at the end of fiscal 2022 totaled ¥23,086 million, an increase of ¥2,444 million from theend of the previous fiscal year. This is mainly due to an increase of ¥1,207 million in retained
earnings due to the recording of net income, and an increase of ¥756 million in deferred gain onderivatives under hedge accounting.
(3) Overview of Cash Flows
Cash and cash equivalents (“cash”) at the end of fiscal 2022 increased by ¥4,698 million from the endof the previous fiscal year to ¥21,149 million.
Cash flows and factors behind the changes in the cash flows are explained below.
(Operating cash flow)
Cash provided by operating activities during fiscal 2022 totaled ¥7,958 million, compared with ¥899
million used in the previous fiscal year. The change is mainly attributable to ¥3,829 million in profit
before income taxes and ¥3,638 million in depreciation and amortization.
(Investing cash flow)
Cash provided by investing activities during fiscal 2022 totaled ¥2,077 million, compared to ¥1,916
million used in the previous fiscal year. The change is mainly the result of ¥1,506 million used forthe purchase of tangible assets through capital investment offset against proceeds from sales oftangible assets of ¥2,774 million and ¥1,117 million from sales of investment securities.
(Financing cash flow)
Cash used by financing activities during fiscal 2022 totaled ¥5,420 million, compared to ¥2,978
million used in the previous fiscal year. The change is mainly attributable to repayments of long-3

term debt of ¥11,993 million and redemption of bonds totaling ¥2,379 million, partially offset byproceeds of ¥8,000 million from long-term debt and ¥1,488 million from the issuance of bonds.
Changes in the Group’s cash flow-related indicators are as follows.
FY2018FY2019FY2020Equity ratio (%)
39.1
37.7
26.3
Equity ratio
31.3
29.3
12.3
based onmarket value (%)
Cash flow to
6.6
6.1
－
interest-bearing
debt (years)
Interest
26.3
17.3
－
coverage ratio(times)
Notes:
Equity ratio: Total equity/Total assets
Equity ratio based on market value: Market valuation/Total assets
Cash flow to interest-bearing debt: Interest-bearing debt/Operating cash flow
Interest coverage ratio: Operating cash flow/Interest expenses

FY2020

FY2021

22.5

26.1

16.3

19.8

－

6.0

－

16.2

1. All indicators are calculated based on consolidated figures.
2. Cash flows from operating activities in the Consolidated Statements of Cash Flows are used for
operating cash flow. Interest-bearing debt includes all liabilities recorded on the Consolidated
Balance Sheets on which interest is paid. Interest paid in the Consolidated Statements of Cashflows is used for interest expenses.
(4) Earnings Forecast for the Fiscal Year Ending December 31, 2023
Regarding the consolidated results forecast for the fiscal year ending December 31, 2023, amid
ongoing uncertainty as to when the novel coronavirus pandemic will end, we expect the businessenvironment to move into a new stage in which living with COVID-19 is the norm.
The number of wedding reservations and weddings held in the Wedding and Hotel businesses
have more or less returned to normal, but spend per wedding is likely to take more time to recover.
In the hotel business, it remains difficult to forecast average charge per night and occupancy rate
due to uncertainty in regards to when restrictions on travel from China will be lifted.
At all of our facilities, the Group will continue to take appropriate steps to prevent the spread of
infection so that our customers can use our facilities with peace of mind. At the same time, in thewedding business, we will continue to provide online meetings and online weddings, and promote
e-commerce business related to wedding guest attire and dress accessories sales. In addition, we
will promote the expansion of the contract wedding business with wedding reception halls operated
by other companies in the industry, and work to increase the number of weddings handled withminimal investment.
Taking the above into account, for the fiscal year ending December 31, 2023, the Group forecasts
consolidated net sales of ¥57,990 million (up 12.2% year on year), operating income of ¥4,508
million (up 51.5% year on year), ordinary income of ¥4,171 million (down 12.3% year on year), andprofit attributable to owners of the parent of ¥2,927 million (up 95.3% year on year).

42. Basic Views on Adoption of Accounting Standards
The Group’s financial statements are prepared in accordance with the accounting principles generally
accepted in Japan (Japanese GAAP), in order to ensure comparability with other companies in thepeer group. As to the possible future adoption of the International Financial Reporting Standards(IFRS), the Group shall continue its study going forward, taking into account the future developmentsof the Group’s business and of the global and Japanese business environments.

5

3. Consolidated Financial Statements and Main Notes(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
Accumulated depreciation
Buildings and structures, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total tangible assets
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful receivables
Total investments and other assets
Total fixed assets
Deferred assets
Bond issuance costs
Total deferred assets
Total assets

6

December 31, 2021
Amount(millions of yen)
December 31, 2022
Amount16,539
1,000
1,526
182
381
1,192
(31)
20,792

21,238
1,479
166
381
1,360
(37)
24,58859,946(28,619)
31,327
12,276611
10,104(8,471)
1,633
45,84759,244(30,161)
29,083
9,544
1,007
10,617(9,121)
1,496
41,131

1,732
651
2,383

1,157
1,020
2,177

6,361
7,369
7,251
781
(107)
21,65669,887

5,599
7,211
5,695
1,007
(121)
19,39262,702221
221
90,901

181
181
87,472

(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

7

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

2,101
7,106
964
839
3,107
62
47
4,300
18,5305,393
33,528
393
914
4,529
975
45,73470,2605,703
33,722
407
953
4,535
532
45,85564,386472
634
20,933(892)
21,146472
634
22,140(892)
22,353

(38)

-

(584)

171

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

347
(5)
513
219
23,08687,472

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

33,42927,257
6,172
12,563(6,391)

Year ended
December 31, 2022
Amount
51,69934,22017,47814,502
2,976

118
175
866
505
212
1,878

37
152
1,381
1,044
234
2,850

457

486

178

93

122
181
939
(5,452)

177
311
1,068
4,758

0
14
14

0
3
3

24
79
1,512
29
1,645
(7,083)226(1,170)(944)(6,139)(1)(6,137)

36
382
100
238
94
80
932
3,829
952
1,377
2,330
1,499
0
1,498

Year ended
December 31, 2021
AmountNet sales
Cost of sales
Gross profit
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
Share of loss of entities accounted for using equity
methodLoss on investments in capital
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of fixed assets
Gain on sales of memberships
Reversal of provision for retirement benefits
Total extraordinary income
Extraordinary loss
Loss on disposal of fixed assets
Loss on sales of fixed assets
Loss on sales of investment securities
Impairment loss
Shop closing expenses
Other
Total extraordinary loss
Profit (loss) before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of the parent
8

Consolidated Statements of Comprehensive Income(millions of yen)

Profit (loss)
Other comprehensive income
Net unrealized gain on available-for-sale securities
Deferred gain 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

9

Year ended
December 31, 2021
Amount(6,139)Year ended
December 31, 2022
Amount
1,499

4
0
174
0

38
756
208
0

162

233

342
(5,796)

1,237
2,736

(5,813)

2,706

17

29

(3) Consolidated Statements of Changes in Net Assets
Year ended December 31, 2021 (January 1 to December 31, 2021)(millions of yen)
Shareholders’ equity

Balance at beginning of term

Capital stock

Capital surplus

472

634

Changes during term
Profit (loss) attributable toowners of the parent
Net changes in items otherthan shareholders’ equity

Retainedearnings

Treasury stock

27,070(892)(6,137)

Total
shareholders’equity27,284(6,137)

Total changes during term--

(6,137)-(6,137)

Balance at end of term

472

634

20,933(892)

21,146

Accumulated other comprehensive income
Deferred gain
Foreign(loss) on
Remeasurements
currency
derivativesof definedtranslation
under hedge
benefit planadjustments
accounting

Total
accumulated
othercomprehensive
incomeNet unrealized
gain (loss) on
available-forsale securities
Balance at beginning of
term

(43)

(585)

(382)

(7)

(1,018)

Noncontrollinginterests

171

Total net
assets26,437

Changes during term
Profit (loss) attributableto owners of the parent
Net changes in items
other thanshareholders’ equity(6,137)
4

0

317

0

323

17

341

Total changes during term

4

0

317

0

323

17

(5,796)

Balance at end of term

(38)

(584)

(64)

(6)

(694)

189

20,64110

Year ended December 31, 2022 (January 1 to December 31, 2022)(millions of yen)
Shareholders’ equity

Balance at beginning of term
Cumulative effects of changes
in accounting policies
Restated balance

Capital stock

Capital surplus

472

634

Retainedearnings

Treasury stock

20,933

(892)

(291)
472

634

Changes during term
Profit attributable to owners of
the parent
Change in ownership interestof parent due to transactions
with non-controlling interests
Net changes in items otherthan shareholders’ equity

20,641

Total
shareholders’equity21,146
(291)

(892)

1,498

20,855
1,498
(0)

(0)

Total changes during term

-

(0)

1,498

-

1,498

Balance at end of term

472

634

22,140(892)

22,353

Accumulated other comprehensive income
Deferred gain
Foreign(loss) on
Remeasurements
currency
derivativesof definedtranslation
under hedge
benefit planadjustments
accounting

Total
accumulated
othercomprehensive
incomeNet unrealized
gain (loss) on
available-forsale securities
Balance at beginning ofterm
Cumulative effects ofchanges in accounting
policies
Restated balance

(38)

(584)

(64)

(6)

(694)

Noncontrollinginterests

189

Total net
assets

20,641
(291)

(38)

(584)

(64)

(6)

(694)

189

20,349Changes during term
Profit attributable toowners of the parent
Change in ownershipinterest of parent due totransactions with noncontrolling interests
Net changes in items
other thanshareholders’ equity

1,498

(0)

38

756

412

0

1,207

29

1,237

Total changes during term

38

756

412

0

1,207

29

2,736

Balance at end of term

-

171

347

(5)

513

219

23,08611

(4) Consolidated Statements of Cash Flows

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation and amortization
Impairment loss
Amortization of goodwill
Amortization of bond issuance expenses
Loss on disposal of fixed assets
Increase (decrease) in allowance for loss on shop closing
Increase (decrease) in provision for directors’ retirement
benefits
Increase (decrease) in allowance for doubtful receivables
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity
method(Gain) loss on investments in securities(Gain) loss on sales of investment securities(Gain) loss on sales of fixed assets
Shop closing expenses(Gain) loss on investments in silent partnership
Foreign exchange (gain) 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 accrued consumption taxes(Increase) decrease in other assets
Increase (decrease) in other liabilities
Other
Sub totalInterest and dividends received
Interest paid
Income taxes refund
Income taxes paid
Net cash provided by (used in) operating activities

12(millions of yen)
Year ended
Year ended
December 31, 2021 December 31, 2022
AmountAmount(7,083)
3,724
1,512
343
45
24
(252)

3,829
3,638
238
343
51
36
40

41

39

0
(3)
(118)
457

5
11
(37)
486

178

93

(10)
79
(0)
29
(175)
(506)

66
100
381
94
(152)
(1,010)

(183)

(478)

26
437

16
362

(158)

27

1,665
289
(1,121)
246
(510)
57
(453)
43
(36)
(899)

314
(256)
230
301
8,775
103
(490)
(430)
7,958

(millions of yen)
Year ended
Year ended
December 31, 2021 December 31, 2022
Cash flows from investing activities
Purchase of tangible assets
Proceeds from sales of tangible assets
Purchase of intangible assets
Proceeds from sales of investment securities
Purchase of affiliated companies’ shares
Payments for investments in capital
Proceeds from withdrawal of investment in silent
partnership
Lease and guarantee deposits
Collection of lease and guarantee deposits
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term debt
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds
Payments for redemption of bonds
Dividends paid to shareholders
Proceeds from stock issuance to non-controlling interests inconjunction with establishment of consolidated subsidiary
Other
Net cash provided by (used in) financing activities
Foreign currency translation adjustments on cash andcash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period

13

AmountAmount

(780)
0
(107)
351
(52)
(1,876)(1,506)
2,774
(425)
1,117
-

74

208

(72)
738
(191)
(1,916)

(407)
567
(251)
(2,077)(1,289)2,600(4,011)
489
(774)
(0)

(500)
8,000
(11,993)
1,488(2,379)(0)

7-(2,978)(36)(5,420)43

83(5,751)
22,202
16,451

4,698
16,451
21,149(5) Notes on Consolidated Financial Statements(Note on the Going-concern Assumption)
Not applicable(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 current fiscal year. In line with
this, revenue is recognized upon the transfer of control for the promised goods or services tocustomers 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 current fiscal year, the recognition method has beenchanged so that revenue is recognized for certain transactions at the point in time when thehandover of the goods or the delivery of the goods has been completed.
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 current
fiscal year, the recognition method has been changed so that revenue is recognized in linewith 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 current fiscal year, the recognition
method has been changed so that they are recognized as performance obligations and thetransaction price is allocated to the performance obligations based on the stand-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 current fiscal year was added to or subtracted from retained
earnings at the beginning of the current fiscal year. However, based on the method set forth inParagraph 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 current fiscal year in accordance with theprevious treatment. In addition, based on supplementary provision (1), Paragraph 86 of the
Accounting Standard for Revenue Recognition, regarding contracts modified prior to thebeginning of the current fiscal year, accounting treatment has been implemented based on thecontract conditions made after reflecting all the modifications to the contracts, and the cumulative
effects are added to or subtracted from retained earnings at the beginning of the current fiscal
year.
14

As a result, for the year ended December 31, 2022, net sales decreased by ¥104 million; costof sales increased by ¥1 million; selling, general and administrative expenses decreased by ¥23
million; and operating income, ordinary income and profit before income taxes decreased by ¥81
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 89-3 of the Accounting Standard for Revenue
Recognition, information on the disaggregation of revenue arising from contracts with customers
for the previous fiscal year is not presented.
(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 current fiscal year. In
accordance with the transitional treatment set forth in Paragraph 19 of the Accounting Standard
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 been prospectively applied. Thesechanges have no impact on the consolidated financial statements.

15

(Segment Information)
1. Overview of reportable segment
The Group’s reportable segments are components of the Group for which separate financial
information is available. These segments are subject to periodic examinations to enable the Company’sboard of directors to decide how to allocate resources and assess performance.
The Group’s operations are classified into three reportable segments: the “Wedding business” thatprovides services such as planning and operation related to wedding ceremonies and banquets inJapan and overseas, the “Hotel business” that offers the management of hotel weddings and banquets,
and provision of hotel accommodation services, and the “W&R business” that provides reflexology
services and management of a spa complex and a comprehensive fitness club.
The “Wedding business” comprises outlet management in Japan and sales to customers, provisionof food and drinks at wedding banquets, dress rental and beauty care services, as well as managementof venues and operations for weddings and banquets in Hawaii and Bali, mainly for customers whobook through the Group’s sales salons in Japan.
The “Hotel business” offers the management of hotel weddings and banquets, and provision of hotel
accommodation services at the “Hotel InterContinental Tokyo Bay”, “The Strings by InterContinental
Tokyo”, “The Strings Hotel Yagoto Nagoya”, “The Strings Hotel Nagoya”, and at “Kimpton Shinjuku
Tokyo”.
The “W&R business” operates a British-style reflexology salon, “Queensway” with a high level ofskills and sophisticated know-how of attending to customers, as well as managing a spa complex,“Beauty & Relax SPA-HERBS”, and “BEST STYLE FITNESS” comprehensive fitness clubs.
2. Calculation of net sales, income/loss, assets, liabilities, and other items by reportable segment
Accounting methods applied in the reportable business segments are in accordance with theaccounting policies that are adopted for the preparation of consolidated financial statements.
Reportable segment income is based on operating income.
Intersegment sales and transfers are based on market price.

16

3. Net sales, income/loss, assets, liabilities, and other items by reportable segment
Year ended December 31, 2021 (January 1 to December 31, 2021)(millions of yen)

Reportable segment

Adjustments(note 1)

Amountrecorded on
consolidated
financialstatements(note 2)33,429-33,42934

1,789(1,789)-10,931

2,770

35,219(1,789)33,429(715)(3,780)(525)(5,022)(1,368)(6,391)

26,57334,037

3,463

64,074

26,82690,901

1,333
77

2,041
128

247
138

3,622
343

102
-

3,724
343

639

110

82

832

45

878

WeddingbusinessHotelbusiness

W&R
business

20,167

10,526

2,735

1,349

405

Total

21,517

Segment loss
Segment assets

Net sales
Sales to outside
customers
Inter-segment sales ortransfers

Total

Other items
Depreciation/amortization
Amortization of goodwill
Increase in tangible andintangible assets

Notes: 1. Details of adjustments are as follows:(1) The minus 1,368 million yen adjustment for segment loss includes a 44 million yen elimination ofinter-segment sales and minus 1,412 million yen in corporate expenses that are not allocated toeach reportable segment. The main component of these unallocated corporate expenses isgeneral and administrative expenses that are not attributable to reportable segments.
(2) The 26,826 million yen adjustment for segment assets comprises corporate assets that are notallocated to each reportable segment. Unallocated corporate assets consist mainly of cash anddeposits held by the Company which are not attributable to reportable segments.
(3) The 102 million yen adjustment for depreciation/amortization comprises depreciation/amortization
related to corporate assets that are not allocated to each reportable segment.
(4) The 45 million yen adjustment for the increase in tangible and intangible assets comprises
investments in corporate assets that are not allocated to each segment.
2. Segment loss is adjusted to correspond with operating loss reported on the consolidated statements ofincome.

17

4. Net sales, income/loss, assets, liabilities, and other items by reportable segment and information on
disaggregation of revenue
Year ended December 31, 2022 (January 1 to December 31, 2022)(millions of yen)

Reportable segment

Net sales
Revenue from contracts
with customers
Other revenue
Sales to outside
customers
Inter-segment sales ortransfers

Adjustments(note 1)

Amountrecorded on
consolidated
financialstatements(note 2)

51,563-51,563

-

135

-

135

14,554

2,961

51,699-51,699

1,027

31

2,930

(2,930)-

WeddingbusinessHotelbusiness

W&R
business

34,047

14,554

2,961

135

-

34,182
1,871

Total

Total

36,053

15,582

2,993

54,629(2,930)51,699Segment income (loss)

6,154(1,441)

(334)

4,378

(1,402)

2,976

Segment assets

29,41833,0442,429

64,892

22,57987,472

1,499
77

1,893
128

184
138

3,577
343

61
-

3,638
343

1,976

57

24

2,058

45

2,103

Other items
Depreciation/amortization
Amortization of goodwill
Increase in tangible andintangible assets

Notes: 1. Details of adjustments are as follows:(1) The minus 1,402 million yen adjustment for segment income (loss) includes a 90 million yen
elimination of inter-segment sales and minus 1,493 million yen of 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) The 22,579 million yen adjustment for segment assets comprises corporate assets that are notallocated to each reportable segment. Unallocated corporate assets consist mainly of cash anddeposits held by the Company which are not attributable to reportable segments.
(3) The 61 million yen adjustment for depreciation/amortization comprises depreciation/amortization forcorporate assets that are not allocated to each reportable segment.
(4) The 45 million yen adjustment for increase in tangible and intangible assets comprises investments
in corporate assets that are not allocated to each reportable segment.
2. Segment income (loss) is adjusted to correspond with operating income reported on the consolidated
statements of income.

18

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.
from the beginning of the current consolidated fiscal year, similar changes have been made to themethod of calculating segment income/loss. As a result of this change, for the year ended
December 31, 2022, net sales decreased by ¥42 million in the “Wedding business”, by ¥33 million
in the “Hotel business”, and by ¥28 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
Consolidated Financial Statements (Segment Information)”.
(Per Share Information)
Year ended December 31, 2021
Year ended December 31, 2022
Net assets per share
428.77 yen
479.39 yen
Profit (loss) per share(128.67) yen
31.42 yen
Notes: 1. Diluted profit per share for the year ended December 31, 2021 is not disclosed as a loss per
share was recorded and there were no dilutive shares. Diluted profit per share for the year
ended December 31, 2022 is not disclosed as there were no dilutive shares.
2. The calculation base for profit (loss) per share is as follows:Year ended
December 31, 2021

Year ended
December 31, 2022

(6,137)

1,498

-

-

(6,137)

1,498

47,700,166

47,700,166

Profit (loss) attributable to owners of theparent (millions of yen)Amount not attributable to common
stockholders (millions of yen)
Profit (loss) attributable to common stock ofowners of the parent (millions of yen)
Average number of common stock
outstanding during the term (shares)(Significant Subsequent Events)
Not applicable194. Other Information(1) Changes in Officers
Not applicable(2) Weddings Held and Orders Received
1) Number of weddings held
Year ended December 31, 2021

Year ended December 31, 2022

Number of weddings held (cases)
7,084

Number of weddings held (cases)
10,837

Hotel business

1,259

1,660

Total

8,343

12,497

Year ended December 31, 2021

Year ended December 31, 2022

Segment
Wedding business2) Wedding orders received
Segment
Wedding business
Hotel business
Total

Orders received

Order backlog

Orders received

Order backlog(cases)7,753(cases)7,007(cases)9,810(cases)
5,980

1,302

1,221

1,559

1,120

9,055

8,228

11,3697,100

20