〔Delayed〕The original disclosure in Japanese was released on May 8, 2020 at 15:00 (GMT+9)

May 8, 2020

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Three Months ended March 31, 2020
(Japanese GAAP)
Stock listing: Tokyo Stock Exchange (First Section)
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):May 15, 2020
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, 2020
(January 1, 2020 – March 31, 2020)(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 ended10,232(21.6)(2,088)(2,568)March 31, 2020Three months ended
13,0497.2
4832
March 31, 2019
Note: Comprehensive income: Three months ended March 31, 2020: (2,849) million yen (- %)Three months ended March 31, 2019: (154) million yen (- %)Diluted profit
per shareyen

Profitper shareyen
Three months ended
March 31, 2020Three months ended
March 31, 2019(50.68)-(0.91)-(2) Consolidated Financial Position

March 31, 2020

Total assets

Net assets

Equity ratio

million yen

million yen%

93,912

34,31699,34337,404
December 31, 2019
Reference: Total equity: March 31, 2020:
34,316 million yen
December 31, 2019:37,404 million yen
Total equity = Shareholders’ equity plus total accumulated other comprehensive income

36.5
37.7

(2,417)-(43)-2. Dividends
End-Q1yen

Dividend per share
End-Q3yen

End-Q2yenYear ended
5.00
December 31, 2019Year ending
December 31, 2020
Year ending
5.00
December 31, 2020
(Forecast)
Note: No revision has been made to the latest dividends forecast.

Year-endyen

Annual totalyen

-

5.00

10.00

-5.00

10.00

3. Earnings Forecast for the Fiscal Year ending December 31, 2020
(January 1, 2020 – December 31, 2020)(Percentages indicate year-on-year changes)
Net sales
million yen
Six months ending
June 30, 2020
Year ending
December 31, 2020%

Operating income

Ordinary income

million yen

million yen%%

Profit attributable toProfit

owners of the parent
million yen%

per shareyen------------------

Note: The latest earnings forecast has been revised.
The novel coronavirus outbreak is expected to have an impact on the Tsukada Global Holdings Group’s businessactivities, and it is therefore difficult at this time to reasonably determine the consolidated earnings forecasts for the six
months ending June 30, 2020 and the full fiscal year ending December 31, 2020. Our consolidated earnings forecasts
announced on February 14, 2020 have therefore been temporarily withdrawn and are currently undetermined. TheGroup will announce its consolidated earnings forecasts when it becomes possible to calculate the forecast figures.

*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.: 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 at endof period

March 31, 2020

December 31, 2019

48,960,000

48,960,000

1,259,834

1,259,834

Three Months ended Three Months ended
March 31, 2020
March 31, 20193) Average number of shares outstanding
during the period

47,700,166

47,700,166* This quarterly earnings report is exempt from quarterly review 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 ofearnings forecasts, please refer to “(3) Earnings Forecast for the Fiscal Year ending December 31, 2020”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, 2020
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)(Segment Information)
3. Supplementary Information(Weddings Held and Orders Received)

12233446678888911111. Review of Consolidated Financial Results(1) Operating Results
In the first three months of the fiscal year ending December 31, 2020, the Japanese economy started
off on a recovery track thanks to an upturn in personal spending and improved employment
conditions, but turned down sharply thereafter due to the impact of the novel coronavirus outbreak
and the outlook is now uncertain.
In this environment, the Tsukada Global Holdings Group (“the Group”) focused on creating newvalue, developing high-quality, appealing outlets, and providing high value-added services in thebridal, hotel, and wellness and relaxation (W&R) markets. However, all segments of the Group wereseverely impacted by the decline in demand from overseas visitors, postponement of wedding
receptions, and requests from authorities for people to stay home in response to the novel
coronavirus outbreak.
As a result, in the first quarter of 2020, the Group posted consolidated net sales of ¥10,232 million(down 21.6% year on year). The Group recorded a first-quarter operating loss of ¥2,088 million(compared with a profit of ¥48 million a year earlier) and an ordinary loss of ¥2,568 million (comparedwith a profit of ¥32 million a year earlier). The net loss attributable to owners of the parent amounted
to ¥2,417 million (compared with a loss of ¥43 million a year earlier).
The results for each business segment were as follows.
1) Wedding businessIn the first three months of fiscal 2020, the wedding business recorded a sales decline owing to anincrease in the number of postponed wedding receptions due to the impact of the novel
coronavirus outbreak, with the number of wedding receptions held falling significantly to 1,960(down 19.0% year on year). Segment income also declined despite concerted companywide cost
reduction efforts.
As a result, net sales in the wedding business totaled ¥6,447 million (down 18.6% year onyear) and segment loss was ¥505 million (compared with a profit of ¥569 million a year earlier.
2) Hotel business
Segment sales and income declined in the first three months of fiscal 2020, because the numberof weddings held at the Group’s hotels decreased to 259 (down 27.9% year on year) owing topostponements, and hotel accommodation and banquet booking cancelations andpostponements increased, due to the novel coronavirus outbreak.
As a result, net sales in the hotel business came to ¥2,973 million (down 29.0% year on year),and segment loss totaled ¥973 million (compared with a profit of ¥17 million a year earlier).
3) W&R business (Wellness & Relaxation business)
Segment sales and income declined in the first three months of fiscal 2020 because of anincrease in membership suspensions and cancelations at the four Best Style Fitness
comprehensive fitness club outlets due to the novel coronavirus outbreak.
As a result, the W&R business posted net sales of ¥810 million (down 13.7% year on year)
and an operating loss of ¥152 million (compared with a loss of ¥116 million a year earlier).

2(2) Analysis of Financial Condition
Assets, Liabilities, and Net Assets
Total assets as of March 31, 2020, the end of the first three months of fiscal 2020, amounted to¥93,912 million, a decrease of ¥5,431 million from the end of the previous fiscal year (December 31,2019). The decrease mainly reflects an increase of ¥8,862 million in buildings and structures related
to the handover of the newly completed Kimpton Shinjuku Tokyo hotel, which was offset by adecrease of ¥5,980 million from a transfer from construction in progress to buildings and structures,
and a ¥7,810 million decrease in cash and deposits due to capital investments.
Total liabilities as of March 31, 2020, came to ¥59,596 million, a decrease of ¥2,343 million fromthe end of the previous fiscal year. The decrease reflects decreases of ¥1,021 million in income taxes
payable due to payment of income taxes and ¥753 million in accounts payable – trade.
Net assets as of March 31, 2020, totaled ¥34,316 million, ¥3,087 million less than at the end of
the previous fiscal year. The major changes are a ¥2,655 million reduction in retained earnings owing
to the payment of dividends and the posting of a quarterly net loss attributable to owners of theparent.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2020
The consolidated earnings forecasts for the six months ending June 30, 2020, and the full fiscal year
ending December 31, 2020 have been temporarily withdrawn and are currently undetermined. The
Group’s businesses have closed temporarily or are operating on reduced opening hours at therequest of central and local governments in order to help prevent the spread of the novel coronavirus.
Due to the present uncertainty as to when the novel coronavirus outbreak will end, it is difficult toreasonably calculate the consolidated earnings forecast figures at this time. The Group will continue
to monitor trends relating to the outbreak and will announce its consolidated earnings forecasts when
it becomes possible to calculate the forecast figures.

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

December 31, 2019
AmountAssets
Current 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
LandConstruction in progress
Other, net
Total tangible assets
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

4March 31, 2020
Amount28,347
1,259
2,455
116
530
1,389
(22)
34,076

20,537
608
1,406
123
516
1,975
(24)
25,142

22,199
9,574
9,837
1,909
43,52031,062
9,533
3,856
2,005
46,457

1,475
195
1,670

1,424
619
2,044

6,721
8,451
4,964
(213)
19,925
65,115151
99,343

6,347
8,381
5,614
(223)
20,11968,622
147
93,912

(millions of yen)

December 31, 2019
AmountLiabilities
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
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 plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

5

March 31, 2020
Amount

2,298
4,617
668
1,275
2,442
6,557
17,859

1,544
300
4,692
668
254
3,230
4,911
15,602

5,157
34,209
303
831
2,412
1,167
44,08061,9394,947
34,203
314
841
2,400
1,286
43,99459,596472
634
37,937(892)
38,151472
634
35,282(892)
35,495

(72)

(291)

(504)

(617)

(163)
(5)
(747)
37,404
99,343(265)(5)(1,179)34,316
93,912

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Gain on investments in silent partnership
Real estate rental income
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Real estate rental expenses
Loss on investments in marketable securities
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of fixed assets
Total extraordinary income
Extraordinary loss
Loss on disposal of fixed assets
Shop closing expenses
Loss on redemption of securities
Loss on valuation of investment securities
Other
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 monthsended March 31,2019
Amount13,049
9,157
3,891
3,843
48

Three months
ended March 31,2020
Amount10,232
8,193
2,038
4,127(2,088)

673
88
24
193

47
1673
8
14
161

129
71
8
209
32

169
20
339
112
641
(2,568)

-0
0

3
2
12
0
17
14
71
(56)
(13)
(43)

0
35
130
13
179
(2,748)(331)(2,417)(2,417)

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 hedgeaccounting
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 theparent
Comprehensive income attributable to noncontrolling interests

7

Three months
ended March 31,
2019
Amount(56)

Three months
ended March 31,
2020
Amount(2,417)

33

(218)

(138)

(112)

7
(0)

(85)
0-

(15)

(97)
(154)

(432)
(2,849)(141)(2,849)(13)-

(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 oremergence of temporary differences since the end of the previous fiscal year, and therefore thecalculations 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 first quarter ended March 31, 2020, and then multiplying 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 is used.

8

(Segment Information)
I. Three months ended March 31, 2019 (January 1 to March 31, 2019)
1. Net sales and income/loss by reportable segment(millions of yen)

Reportable segment
AmountWeddingbusiness

Hotelbusiness

W&R
business

Total

Adjustments(note 1)

recorded on
consolidated
statements ofincome (note 2)

Net sales
Sales to outside
customers
Inter-segment sales andtransfers
Total
Segment income (loss)

7,919

4,189

939

13,049-13,04934478

3426(426)

-

8,264

4,268

942

13,475(426)

13,049569

17(116)470(422)48

Notes: 1. Minus 422 million yen adjustments for the segment income or loss include 32 million yen elimination ofinter-segment sales and minus 455 million yen corporate expenses that are not allocated to eachreportable segment. The main component of these unallocated corporate expenses is general andadministrative expenses that are not attributable to reportable segments.
2. Segment income or loss adjustments are based on operating profit reported on the quarterly
consolidated statements of income for the corresponding period.

2. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable9II. Three months ended March 31, 2020 (January 1 to March 31, 2020)
1. Net sales and income/loss by reportable segment(millions of yen)

Reportable segment
AmountWeddingbusiness

Hotelbusiness

W&R
business

Total

Adjustments(note 1)

recorded on
consolidated
statements ofincome (note 2)

Net sales
Sales to outside
customers
Inter-segment sales andtransfers

6,447

2,973

810

10,232-

10,232298

655368(368)-Total

6,745

3,038

815

10,600(368)10,232

Segment income (loss)

(505)

(973)

(152)

(1,631)(457)(2,088)Notes: 1. Minus 457 million yen adjustments for the segment income or loss include 32 million yen elimination ofinter-segment sales and minus 490 million yen corporate expenses that are not allocated to eachreportable segment. The main component of these unallocated corporate expenses is general andadministrative 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 heldSegment

Three months ended
March 31, 2019

Three months ended
March 31, 2020

Year ended
December 31, 2019

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

2,420

1,960

12,385

Hotel business

359

259

1,611

Total

2,779

2,219

13,996

Wedding business2) Wedding orders received

Segment

Three months ended
March 31, 2019

Three months ended
March 31, 2020

Year ended
December 31, 2019

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

3,804

8,503

3,098

7,656

11,784

6,518

Hotel business

474

1,294423

1,195

1,463

1,031

Total

4,278

9,797

3,521

8,851

13,247

7,549

Wedding business11