〔Delayed〕The original disclosure in Japanese was released on May 12, 2017 at 15:00 (GMT+9)

May 12, 2017

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Three Months ended March 31, 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):May 15, 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 Three Months ended March 31, 2017
(January 1, 2017 – March 31, 2017)(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%

Three months ended
11,513 (0.5)
(603)
(670)
March 31, 2017
Three months ended
11,571
7.6
(588)
(866)
March 31, 2016
Note: Comprehensive income: Three months ended March 31, 2017: (767) million yen (- %)Three months ended March 31, 2016: (746) million yen (- %)Diluted profit
per shareyen

Profitper shareyen
Three months ended
March 31, 2017
Three months ended
March 31, 2016

(11.03)-(14.19)-(2) Consolidated Financial Position

March 31, 2017

Total assets

Net assets

million yen

million yen
84,619Equity ratio%
33,22284,752
34,228December 31, 2016
Reference: Total equity: March 31, 2017:
31,664 million yen
December 31, 2016:
32,618 million yen
Total equity =Shareholders’ equity plus total accumulated other comprehensive income.

37.4
38.5

(526)

-

(692)

-

2. Dividends
End-Q1yen

End-Q2yen

Dividend per share
End-Q3yen

Year ended
5.00
December 31, 2016
Year ending
December 31, 2017
Year ending
December 31, 2017
5.00
(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%%

Profit attributable toProfitowners of the parent
million yen%

per shareyen

Six months ending
June 30, 2017

26,300

1.5

350

(1.4)

400

-

150

-

3.14

Year ending
December 31, 201760,600

9.5

4,300

22.3

4,500

25.0

2,800

43.4

58.70

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

*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 “(3) 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 Major 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(4) Shares issued (common stock)1) Number of shares issued at end of period(including treasury stock)2) Number of shares held in treasury stock at endof period

March 31, 2017

December 31, 2016

48,960,000

48,960,000

1,259,834

1,259,834

Three Months ended Three Months ended
March 31, 2017
March 31, 2016
3) Average number of shares outstanding during
the period

47,700,166

48,801,360* 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 Major 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 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 three months of the fiscal year ending December 31, 2017, the Japanese economy
followed a moderate recovery path, thanks to the improvement in personal spending andemployment situation due to the favorable impact of the government’s economic policies.
Nonetheless, the future outlook remains unclear in view of uncertainties over the direction of U.S.
policies and the Chinese and other Asian economies.
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 markets while working to create new value, develop high-quality, extremely
appealing outlets, and provide high value-added services.
Based on this policy, the Company is taking steps to expand its earnings and geographicaloperating areas with its first foray into Okinawa Prefecture and preparations for the opening of its newoutlet “The Strings Omotesando” (Minato Ward, Tokyo).
As a result of these efforts, in the first three months of the fiscal year ending December 31, 2017,
Tsukada Global Holdings Inc. (“the Company”) posted consolidated net sales of ¥11,513 million(down 0.5% year on year). This decrease largely reflects the reduction in the number of weddings
held partly due to the decline in the number of business days (national holidays) in the wedding
segment, our core business. The company posted an operating loss of ¥603 million (compared witha loss of ¥588 million a year earlier), ordinary loss of ¥670 million (compared with a loss of ¥866
million a year earlier) and net loss of ¥526 million (compared with a loss of ¥692 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 three months of fiscal 2017, the number of weddings held and sales in the wedding
business declined year on year primarily owing to the decreased number of business days
(national holidays).
As a result, net sales in the wedding business were ¥6,561 million (down 3.9% year on year),and segment operating loss was ¥62 million (compared with a segment income of ¥28 million ayear earlier).
b. Hotel businessIn the first three months of fiscal 2017, sales of the hotel business increased slightly partly
buttressed by the steady increases in the overnight accommodation occupancy rate and averagecustomer spend thanks to the continued steady flow of visitors to Japan since last year. Anotherfactor is the continued uptrend in the number of orders received and weddings held in the hotel
wedding business.
As a result, net sales in the hotel business reached ¥4,136 million (up 0.5% year on year), while
segment operating income totaled ¥32 million (compared with a segment loss of ¥120 million ayear earlier).
c. W&R business (Wellness & Relaxation business)
In the first three months of fiscal 2017, sales surged fueled by the full three-month term operationof the spa complex - Beauty & Relax SPA-HERBS.
As a result, net sales in the W&R business came to ¥815 million (up 30.4% year on year), while
segment operating loss totaled ¥114 million (compared with a segment loss of ¥78 million a year
earlier).

2(2) Analysis of Financial Condition
Assets, Liabilities, and Net Assets
Total assets at the end of the first three months of fiscal year 2017 (March 31, 2017) amounted to¥84,619 million, a decrease of ¥133 million from the end of the previous fiscal year (December 31,2016). The decline was mainly the result of a ¥351 million increase in other current assets primarily
due to a rise in deferred tax assets and decrease of ¥553 million in cash and deposits.
Liabilities at the end of the first three months of the fiscal year came to ¥51,396 million, an increaseof ¥872 million compared with the end of the previous fiscal year. The rise is chiefly attributable to a
net increase of ¥637 million in advances received and ¥1,420 million in debt and corporate bonds,
which eclipsed the impact of a decrease of ¥828 million in income taxes payable.
Net assets at the end of the first three months of fiscal year 2017 amounted to ¥33,222 million,¥1,005 million less than at the end of the previous fiscal year. This decline largely reflects the net lossof ¥526 million attributable to owners of the parent and dividend payments of ¥238 million fromretained earnings.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2017
There is no change to the consolidated earnings forecasts for the six months ending June 30, 2017
and the year ending December 31, 2017 which the Company announced in its fiscal 2016
Consolidated Earnings Report dated February 14, 2017.

3

2. Quarterly Consolidated Financial Statements and Major 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, 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

(millions of yen)March 31, 2017

AmountAmount15,468
966
114
506
2,008
(64)
19,00014,914
926
41
103
504
2,360
(66)
18,78523,597
21,1562,585
47,33823,596
20,8192,856
47,272

2,271
272
2,543

2,204
269
2,474

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

3,325
8,664
3,992
15,98265,729104
84,619December 31, 2016
Amount(millions of yen)March 31, 2017
Amount2,362
13,062
824
1,112
1,336
3,366
22,0652,162
600
12,388
886
283
1,974
3,184
21,4793,684
5,000
15,747
332
702
2,339
652
28,45950,5243,795
5,000
17,069
343
711
2,354
642
29,91751,396

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

472
634
32,090(892)
32,304472
634
31,326(892)
31,539

Accumulated other comprehensive income
Net unrealized gain on available-for-sale securities
Foreign currency translation adjustments
Remeasurements of defined benefit plans
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

(67)
195
(3)
124
1,558
33,222
84,619Liabilities
Current liabilities
Accounts payable - trade
Short-term debt
Current portion of long-term debt
Current portion of bonds
Income taxes payable
Advances received
Other
Total current liabilities
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 liabilities5(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Gain on investments in silent partnership
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 (loss)
Extraordinary income
Gain on sales of fixed assets
Reversal gains of provision for directors’ retirement
benefits
Total extraordinary income
Extraordinary loss
Loss on disposal of fixed assets
Shop closing expenses
Loss on sales of investment securities
Total extraordinary loss
Profit (loss) before income taxes
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of the parent

6

Three months
ended March 31,
2016
Amount11,571
8,760
2,810
3,399
(588)

(millions of yen)Three months
ended March 31,
2017
Amount11,513
8,570
2,943
3,546
(603)

19
8
74
11
29
142

7
8
74
61
56
33
242

61
106
244
9
421
(866)

55
202
50
309
(670)

0

0

14

-

14

0

3
1
117
122
(975)
(283)
(692)
(692)

9
0
9
(680)
(161)
(518)
7
(526)

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 noncontrolling interests

7

Three months
ended March 31,
2016
Amount(692)(millions of yen)Three months
ended March 31,
2017
Amount
(518)

39
(93)
0
(53)
(746)

(9)
(239)
0
(248)
(767)

(746)

(715)

-

(51)

(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
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 first quarter ended March 31, 2017, and then multiplying
profit (loss) before income taxes by this estimated effective tax rate. In cases where thisestimated effective tax rate cannot be used, the statutory effective tax rate is used.
(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)
I. Three months ended March 31, 2016 (January 1 to March 31, 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
Total
Segment income (loss)
Notes:

6,829

4,117

625

11,571-

11,571

310

97

-

408

(408)

-

7,140

4,214

625

11,979(408)

11,571

28

(120)

(78)

(170)

(418)

(588)

1. Minus 418 million yen adjustments for the segment income or loss include 2 million yen
elimination of inter-segment sales and minus 420 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 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 applicable.

9II. Three months ended March 31, 2017 (January 1 to March 31, 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

6,561

4,136

815

11,513-

11,513

288

57

-

345

(345)

-

Total

6,850

4,193

815

11,859(345)

11,513

Segment income (loss)

(62)

32

(114)

(143)

(459)

(603)

Notes:

1. Minus 459 million yen adjustments for the segment income or loss include 8 million yen
elimination of inter-segment sales and minus 468 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 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 Applicable103. Supplementary Information
Weddings Held and Orders Received
1) Number of weddings held

Segment

Three months ended
March 31, 2016

Three months ended
March 31, 2017

Year ended
December 31, 2016

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

2,204

2,077

11,401

Hotel business

415

420

1,799

Total

2,619

2,497

13,200

Wedding business2) Wedding orders received

Segment

Three months ended
March 31, 2016

Three months ended
March 31, 2017

Year ended
December 31, 2016

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

3,329

7,141

3,566

7,667

11,563

6,178

Hotel business

507

1,334

507

1,344

1,814

1,257

Total

3,836

8,475

4,073

9,011

13,377

7,435

Wedding business11