〔Delayed〕The original disclosure in Japanese was released on November 9, 2018 at 15:00 (GMT+9)

November 9, 2018

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Nine Months ended September 30, 2018
(Japanese GAAP)
Stock listing: Tokyo Stock Exchange (First Section)
URL: http://www.tsukada-global.holdings/en/
Representative: Masayuki Tsukada, President and CEO
Information contact: Masahiro Yamazaki, Manager, Finance &Accounting Department
Scheduled dates:
Filing of statutory quarterly financial report (shihanki hokokusho):
Dividend payout:
Supplementary materials to quarterly financial results available:
Quarterly earnings presentation held:

Securities code: 2418

Tel: +81-3-5464-0081

November 14, 2018
No
No
(Amounts rounded down to the nearest million yen)

1. Consolidated Performance for the Nine Months ended September 30, 2018
(January 1, 2018 – September 30, 2018)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)
Profit attributable to

Net sales
million yen
Nine months ended
September 30, 2018
Nine months ended
September 30, 2017
Note: Comprehensive income:%Operating income
million yen%

Ordinary income
million yen%

owners of the parent
million yen%

42,330

6.3

1,872

39.0

2,015

39.4

1,218

105.0

39,833

2.6

1,346

59.9

1,445

428.1

594

-

Nine months ended September 30, 2018: 802 million yen (97.3 %)Nine months ended September 30, 2017: 406 million yen ( - %)Diluted profit
per shareyen

Profitper shareyen
Nine months ended
September 30, 2018
Nine months ended
September 30, 2017

25.55

25.27

12.46

11.15

(2) Consolidated Financial Position
Total assets
million yen
September 30, 2018

83,932

Net assets

Equity ratio

million yen%

36,15984,44735,781
December 31, 2017
Reference: Total equity: September 30, 2018: 34,592 million yen
December 31, 2017: 34,208 million yen
Total equity = Shareholders’ equity plus total accumulated other comprehensive income.

41.2
40.5

2. Dividends
End-Q1yen

End-Q2yen

Dividend per share
End-Q3yen

Year ended
5.00
December 31, 2017
Year ending
5.00
December 31, 2018Year ending
December 31, 2018
(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, 2018
(January 1, 2018 – December 31, 2018)(Percentages indicate year-on-year changes)
Net sales
million yen%

Operating income

Ordinary income

million yen

million yen%

Year ending
61,500
7.4
5,000
17.1
December 31, 2018
Note: No revision has been made to the latest earnings forecast.

5,050

%
14.8

Profit attributable toProfitowners of the parent
million yen%

Per share
yen

3,000

36.2

*Notes(1) Changes in significant subsidiaries during the period: Yes(Changes in specific subsidiaries accompanying a change in scope of consolidation)
Newly Consolidated: None
Newly Deconsolidated: Best Bridal Korea Inc.
Note: For details, please refer to “(3) Notes on Quarterly Consolidated Financial Statements(Changes in Significant Subsidiaries for the Nine Months Ended September 30, 2018)" onpage 8 in section "2. Quarterly Consolidated Financial Statements and Main Notes" in theaccompanying materials.
(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)” on page 8 in section “2. Quarterly Consolidated Financial Statements and Main
Notes” 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

62.89

(4) Shares issued (common stock)1) Number of shares issued at the end of theperiod (including treasury stock)2) Number of shares held in treasury stock at
the end of the period

3) Average number of shares outstanding
during the period

September 30, 2018

December 31, 2017

48,960,000

48,960,000

1,259,834

1,259,834

Nine Months ended
September 30, 2018

Nine Months ended
September 30, 2017

47,700,166

47,700,166* Quarterly earnings reports are exempt from quarterly review conducted by certified public
accountants or by auditing firms.
*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,
2018” in the section “1. Review of Consolidated Financial Results” on page 2 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, 2018
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)(Changes in Significant Subsidiaries for the Nine Months Ended September 30, 2018)(Application of Specific Accounting Methods for the Preparation of Quarterly Financial
Statements)(Additional Information)(Segment Information)
3. Supplementary Information(Weddings Held and Orders Received)

1

2
2
3
3
4
4
6
6
7
8
8
8
8
8
8
9
11
11

1. Review of Consolidated Financial Results(1) Operating Results
In the first nine months of the fiscal year ending December 31, 2018, the Japanese economy
stayed on its recent moderate recovery track, supported by the positive impact of government
policies that have boosted personal spending, improved employment conditions and expanded
corporate profits. However, the future outlook remains clouded by the impact that trade issues
could have on the global economy and the uncertainties in the economic conditions abroad.
In this environment, the Tsukada Global Holdings Group endeavored to increase sales andprofitability by accurately responding to increasingly individualized and diversifying customer
needs in the bridal, hotel, and wellness and relaxation (W&R) markets, while also continuing its
efforts to create new value and develop high-quality, appealing outlets capable of providing
high value-added services. During the nine months, the Group continued its efforts to expand
earnings and geographical operating areas. For example, we opened ArtGrace Next Ashiya in
Hyogo Prefecture in March and made steady progress on Kimpton Hotel Shinjuku, Tokyo(provisional name), scheduled to open in 2020 in Tokyo’s Shinjuku Ward.
As a result of these efforts, in the first nine months of 2018, Tsukada Global Holdings Inc.
(“the Company”) posted consolidated net sales of ¥42,330 million (up 6.3 year on year). The
Company recorded an operating income of ¥1,872 million (up 39.0% year on year), an
ordinary income of ¥2,015 million (up 39.4% year on year) and net income of ¥1,218 million(up 105.0% year on year) attributable to owners of the parent.
The results for each business segment were as follows.
1) Wedding businessIn the first nine months of fiscal 2018, sales grew in the wedding business bolstered by anincrease in the number of weddings held in the mainstay Japanese market as well as atoverseas facilities. Segment profits increased on the back of increased facility occupation in
the period despite the impact of the startup costs for ArtGrace Next Ashiya.
As a result, net sales in the wedding business totaled ¥26,405 million (up 8.5% year onyear) and segment operating income totaled ¥3,069 million (up 18.7% year on year).
2) Hotel business
The number of weddings held at our hotels decreased slightly in the first nine months offiscal 2018, but segment sales increased as overnight occupancy rates and average charge
per night grew strongly overall. The high occupancy rate as a whole contributed to anincrease in segment profits.
As a result, net sales in the hotel business came to ¥13,019 million (up 1.7% year onyear), and segment operating income totaled ¥319 million (up 0.3%).
3) W&R business (Wellness & Relaxation business)
This segment achieved strong sales growth in the period under review, as it increased
memberships at its Best Style Fitness Shin-Urayasu comprehensive fitness club that
opened in 2017 as well as at the fitness department of the Beauty & Relax SPA-HERBS
spa complex. However, the segment posted an operating loss owing to the startup cost ofeight Queensway reflexology salons and Best Style Fitness Balance Ginza and due to2seasonal factors.
As a result, the W&R business posted net sales of ¥2,905 million (up 8.0% year onyear) and an operating loss of ¥276 million (compared with a loss of ¥271 million a year
earlier).
(2) Analysis of Financial Condition
Assets, Liabilities, and Net Assets
Total assets as of September 30, 2018, the end of the first nine months of fiscal 2018,
amounted to ¥83,932 million, a decrease of ¥515 million from the end of the previous fiscal
year (December 31, 2017). The decline mainly reflects changes in fixed assets, in particular a¥5,799 million decrease in the value of land holdings and a ¥1,105 million decline in buildings
and structures, which more than offset a ¥1,135 million increase in other fixed assets (mainly
construction in progress) related to the construction of Kimpton Hotel Shinjuku, Tokyo(provisional name) and a ¥5,333 million increase in cash and deposits owing to proceeds on
the sale of commercial-use land at Jingumae in Tokyo as well as financing.
Total liabilities as of September 30, 2018, came to ¥47,772 million, a decrease of ¥893
million from the end of the previous fiscal year. The decline reflects a ¥7,610 million reduction
in short-term debt, a ¥500 million fall in the current portion of convertible bonds with stockacquisition rights and a ¥728 million decrease in income taxes payable, which outweighed a¥8,094 million increase in long-term debt related to financing capital investments (including
the current portion of long-term debt).
Net assets as of September 30, 2018, totaled ¥36,159 million, ¥378 million more than at
the end of the previous fiscal year. The major changes is a ¥827 million increase in retained
earnings reflecting the posting of a quarterly net profit attributable to owners of the parent,
which offset a ¥282 million decrease in foreign currency translation adjustments caused by
the stronger yen.

(3) Earnings Forecast for the Fiscal Year Ending December 31, 2018
There is no change to the consolidated earnings forecasts for the year ending December 31,
2018 that the Company reported in its second quarter Consolidated Earnings Report dated
August 7, 2018.

3

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

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise
Raw materials and supplies
Other
Allowance for doubtful receivables
Total current assets
Fixed assets
Tangible assets
Buildings and structures, net
Land
Other, net
Total tangible assets
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Other
Allowance for doubtful receivables
Total investments and other assets
Total fixed assets
Deferred assets
Total assets

4

December 31, 2017
Amount(millions of yen)
September 30 2018
Amount14,985
1,108
118
557
1,672
(38)
18,404

20,319
1,123
124
477
2,100
(23)
24,121

24,74520,881
2,546
48,17323,64015,082
3,681
42,404

2,004
231
2,236

1,804
193
1,998

2,675
8,663
4,392
(180)
15,55065,96082
84,447

2,940
8,183
4,316
(198)
15,24259,645
165
83,932

December 31, 2017
Amount(millions of yen)
September 30, 2018
Amount

2,461
8,100
3,633
744

2,447
490
3,156
590

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

500

-

1,234
1,625
4,009
22,307

506
2,186
3,587
12,964

Fixed liabilities
Bonds
Long-term debt
Net defined benefit liability
Provision for directors’ retirement benefits
Asset retirement obligations
Other
Total fixed liabilities
Total liabilities

3,415
18,848
353
738
2,369
632
26,35848,666

3,210
27,419
304
774
2,386
712
34,807
47,772472
634
33,816(892)
34,030472
634
34,643(892)
34,857

(66)

(118)

-

(109)

250
(5)
178
1,572
35,781
84,447

(32)
(5)
(265)
1,567
36,15983,932

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gain on available-for-sale securities
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 assets5(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(millions of yen)
Nine months
Nine months
ended September ended September
30, 2017
30, 2018
AmountAmount39,83342,330Net sales
Cost of sales
27,75329,646
12,08012,683Gross profit
10,733
10,811
Selling, general and administrative expenses
1,346
1,872
Operating income
Non-operating income
Interest income
28
22
Dividend income
238Gain on investments in silent partnership
163
150
Real estate rental income
189
168
Foreign exchange gains
78
7
Other
88
65
Total non-operating income
571
423
Non-operating expenses
Interest expenses
163
165
Loss on valuation of derivatives
189
Real estate rental expenses
73
75
Other
45
38
Total non-operating expenses
472
280
1,445
2,015
Ordinary income
Extraordinary Income
Gain on sales of fixed assets
0492
Gain on sales of investment securities
1
Other
1
Total extraordinary income
1493
Extraordinary loss
Loss on disposal of fixed assets
11
40
Loss on sales of investment securities
10
Shop closing expenses
065
Impairment loss
149
180
Other
0
8
Total extraordinary loss
171
294
1,276
2,214
Profit before income taxes
661
975
Income taxes
614
1,239
Profit for the period
19
20
Profit attributable to non-controlling interests
594
1,218
Profit attributable to owners of the parent

6

Consolidated Statements of Comprehensive Income

Profit for the period
Other comprehensive income
Net unrealized gain on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments
Remeasurements of defined benefit plan
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to noncontrolling interests

7

Nine months
ended September
30, 2017
Amount614(millions of yen)
Nine months
ended September
30, 2018
Amount
1,239

8

(51)

-

(109)

(215)
(0)
(207)
406

(276)
0
(436)
802

438

775

(32)

26

(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(Changes in Significant Subsidiaries for the Nine Months Ended September 30, 2018)
Effective from the first quarter ended March 31, 2018 of the current fiscal year, Best Bridal
Korea Inc., which used to be a consolidated subsidiary of the Company in the previous fiscal
year, has now been excluded from the scope of consolidation due to the lack of materiality.
(Application of Specific Accounting Methods for the Preparation of Quarterly Financial
Statements)(Simplified accounting methods)
1) Calculation method for depreciation of fixed assets
Depreciation expenses for assets to which the declining-balance method is applied are
calculated by allocating a quarterly proportion of the amount for the full fiscal year.
2) Calculation method for deferred tax assets and deferred tax liabilities
Regarding judgments on the amount of recoverable deferred tax assets, the Company
has determined that there have been no significant changes in the economic
environment or emergence of temporary differences since the end of the previous fiscal
year, and therefore the calculations are based on future earnings forecasts from theprevious year and tax planning methods.
(Special accounting treatments)
Calculation of taxes
The Company calculates tax liabilities by producing a reasonable estimate of the effective
tax rate after applying tax-effect accounting to income before income taxes for the fiscal
year, which encompasses the third quarter ended September 30, 2018, and thenmultiplying profit 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.
(Additional Information)
Some of the Company’s consolidated subsidiaries used to have a lump-sum retirement
payment plan, as well as defined benefit and defined contribution corporate pension plans.
Effective on April 1, 2018, however, these plans have been abolished. In relation to thisabolishment, “Accounting Treatment concerning Transfer, etc. between Retirement Benefit
Plans” (ASBJ Implementation Guidance No. 1 on Accounting Standard) and “Practical
Solution on Accounting Treatment concerning Transfers, etc. between Retirement Benefit
Plans” (Practical Issues Task Force PITF No. 2) have been implemented. The financial
effect of the said implementation is immaterial on the nine months of the fiscal year ending
December 31, 2018.

8

(Segment Information)[Segment Information]
I. Nine months ended September 30, 2017 (January 1 to September 30, 2017)
1. Net sales and income/loss by reportable segment(millions of yen)

Reportable segment
AmountWeddingbusinessHotelbusiness

W&R
business

Total

Adjustments(note 1)

recorded on
consolidated
statements ofincome (note 2)

Net sales
Sales to outside
customers
Inter-segment sales
and transfers

24,33812,803

2,691

39,833-39,833

900

226

0

1,126

(1,126)-

Total

25,23913,0292,691

40,960(1,126)

39,833

Segment income (loss)

2,584

318

(271)

2,630

(1,284)

1,346

Notes:

1. Minus 1,284 million yen adjustments for the segment income or loss include 24 million yen
elimination of inter-segment sales and minus 1,309 million yen corporate expenses that are notallocated to each reportable segment. The main component of these unallocated corporate
expenses is SG&A expenses that are not attributable to reportable segments.
2. Segment income or loss adjustments are based on operating income reported on the quarterly
consolidated statements of income for the corresponding period.

2. Impairment loss on fixed assets or goodwill by reportable segment(Significant impairment loss on fixed assets)
As decreased profitability remained in some fixed assets held in the “Wedding business”
and “W&R business” segments, the Company concluded that the recovery of the investmentin these assets could not likely be made. Hence, the book value of these assets was written
down to the recoverable amount, while the resulting extraordinary loss was reported as
impairment loss. Accordingly, the impairment loss of 139 million yen in the “Wedding business”
segment and 10 million yen in the “W&R business” segment was reported respectively in thefirst nine months of the fiscal year ending December 31, 2017.

9II. Nine months ended September 30, 2018 (January 1 to September 30, 2018)
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

26,40513,0192,905

42,330-42,330

973

241

0

1,215

(1,215)-

Total

27,37813,2602,906

43,545(1,215)42,330

Segment income (loss)

3,069

319

(276)

3,112

(1,239)

1,872

Notes:

1. Minus 1,239 million yen adjustments for the segment income or loss include 79 million yen
elimination of inter-segment sales and minus 1,318 million yen corporate expenses that are notallocated to each reportable segment. The main component of these unallocated corporate
expenses is SG&A expenses that are not attributable to reportable segments.
2. Segment income or loss adjustments are based on operating income reported on the quarterly
consolidated statements of income for the corresponding period.

2. Impairment loss on fixed assets or goodwill by reportable segment(Significant impairment loss on fixed assets)
As decreased profitability has remained in some fixed assets held in the “Wedding business”
segment, the Company has concluded that the recovery of the investment in these assets
could not likely be made during the nine months of the fiscal year ending December 2018.
Hence, the book value of these assets has been written down to the recoverable amount,
while the resulting extraordinary loss of 180 million yen has been reported as impairment loss.

10

3. Supplementary Information
Weddings Held and Orders Received
1) Number of weddings held
Nine months ended
September 30, 2017

Nine months ended
September 30, 2018Year ended
December 31, 2017

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

Segment
Wedding business

8,238

9,086

11,800Hotel business

1,268

1,194

1,845

Total

9,506

10,28013,6452) Wedding orders received
Nine months ended
September 30, 2017
Segment

Nine months ended
September 30, 2018Year ended
December 31, 2017

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

Wedding business

9,741

7,681

10,287

8,150

12,571

6,949

Hotel business

1,394

1,383

1,427

1,349

1,704

1,116

Total

11,135

9,064

11,714

9,499

14,2758,065

11