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

August 9, 2023

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Six Months ended June 30, 2023
(Japanese GAAP)
Stock listing: Tokyo Stock Exchange (Prime Market)
Securities code: 2418
URL: https://www.tsukada-global.holdings/en/
Representative: Masayuki Tsukada, President and CEO
Information contact: Masahiro Yamazaki, Manager, Finance &Tel: +81-3-5464-0081
Accounting Department
Scheduled dates:
Filing of statutory quarterly financial report (shihanki hokokusho):August 10, 2023
Dividend payout:
September 4, 2023
Supplementary materials to quarterly financial results available: Yes
Quarterly earnings presentation held: Yes (targeted at institutional investors and analysts)(Amounts rounded down to the nearest million yen)

1. Consolidated Performance for the Six Months ended June 30, 2023
(January 1, 2023 – June 30, 2023)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)

Net sales
million yen%

Operating income

Ordinary income

million yen

million yen%%

Six months ended
26,84219.1
1,418
2,165 61.8
June 30, 2023
Six months ended
22,539
71.7
(349)
1,338
June 30, 2022
Note: Comprehensive income: Six months ended June 30, 2023: 1,988 million yen (111.2%)
Six months ended June 30, 2022: 941 million yen (- %)Profit attributable toowners of the parent
million yen%

Diluted profit
per shareyen

Profitper shareyen
Six months ended
June 30, 2023
Six months ended
June 30, 2022

42.70

-

0.05

-

(2) Consolidated Financial Position

June 30, 2023

Total assets

Net assets

Equity ratio

million yen

million yen%

86,105

December 31, 2022
87,472
Reference: Total equity: June 30, 2023:
24,597 million yen
December 31, 2022: 22,866 million yen

24,835

28.6

23,086

26.1

2,036

-

2

-

2. Dividends
End-Q1yen

End-Q2yen

Dividend per share
End-Q3yen

Year-endyen

Annual total
yen

-

5.00

5.00

-

5.00

10.00

Year ended
0.00
December 31, 2022
Year ending
5.00
December 31, 2023
Year ending
December 31, 2023
(Forecast)
Note: No revision has been made to the latest dividends forecast.

3. Earnings Forecast for the Fiscal Year ending December 31, 2023
(January 1, 2023– December 31, 2023)(Percentages indicate year-on-year changes)
Net sales
million yen
Year ending
December 31, 2023

58,300%12.8

Operating income

Ordinary income

million yen

million yen

4,738

%
59.2

4,771

%
0.3

Profit attributable toProfitowners of the parent
million yen%

per share
yen

3,950

163.6

82.81

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

*Notes(1) Changes in significant subsidiaries during the period: None
(Changes in specific subsidiaries accompanying a change in scope of consolidation)
Newly Consolidated: None
Newly Deconsolidated: None
(2) Use of accounting methods specific to the preparation of quarterly consolidated financial statements:
Yes
Note: For details, please refer to “(4) 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 11 in the accompanying materials.
(3) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
1) Changes in accordance with amendments to accounting standards, etc.: Yes
2) Changes other than noted in 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None(4) Shares issued (common stock)1) Number of shares issued at end of period(including treasury stock)2) Number of shares held in treasury at endof period3) Average number of shares outstanding
during the period

June 30, 2023

December 31, 2022

48,960,000

48,960,000

1,259,834

1,259,834

Six Months ended
June 30, 2023

Six Months ended
June 30, 2022

47,700,166

47,700,166* Quarterly earnings reports are exempt from quarterly review conducted by certified public accountants orby audit firms.
*Appropriate Use of Earnings Forecast and Other Important Information(Cautionary Statement with Respect to Forward-Looking Statements)
Any forecasts and forward-looking statements given herein are based on information available as of thisreport’s publication and on certain assumptions that are deemed reasonable. These forecasts are notguarantees of future performance, and actual results may differ from forecasts due to changes in thebusiness environment. For the assumptions underlying the forecasts herein and other notice on the use of
earnings forecasts, please refer to “(3) Earnings Forecast for the Fiscal Year ending December 31, 2023”
in the section “1. Review of Consolidated Financial Results” on page 4 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, 2023
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) Consolidated Statements of Cash Flows(4) Notes on Quarterly Consolidated Financial Statements(Note on the Going-concern Assumption)(Note on Significant Changes in the Amount of Shareholders’ Equity)(Application of Specific Accounting Methods for the Preparation of Quarterly
Consolidated Financial Statements)(Changes in Accounting Policies)(Segment Information)(Revenue Recognition)
3. Supplementary Information(Weddings Held and Orders Received)

1

2
2
3
4
5
5
7
7
8
9
11
11
11
11
11
12
13
14
14

1. Review of Consolidated Financial Results(1) Operating Results
Operating Results and Analysis of Financial Condition
During the first six months of the fiscal year ending December 31, 2023, the Japanese economy as awhole was on a moderate recovery due to the impact of the reclassification of COVID-19 to Class 5,
while the effects of various government policies became apparent, including a pickup in consumer
spending and private-sector capital expenditures. However, the outlook remains uncertain due tosupply chain disruptions caused by heightened geopolitical risks and soaring energy and raw material
costs.
Amidst this environment, the Tsukada Global Holdings Group (“the Group”) focused on creating newvalue, developing high-quality and attractive outlets, providing high value-added services in the bridal,
hotel, and wellness and relaxation (W&R) markets, and on accurately responding to diversifying
customer needs, and thereby strived to expand net sales and to improve profitability.
In the Hotel business, the number of domestic travelers rose as a result of the reclassification of
COVID-19 to Class 5. And thanks to the lifting of travel restrictions, the number of foreign visitors toJapan exceeded 2 million (Japan National Tourism Organization, “Number of Foreign Visitors to Japan(June 2023 estimate)”), a recovery to 72.0% of the figure for June 2019. These factors led to an upturnin the overnight occupancy rate and average charge per night, which remained stable. In addition, thenumber of weddings held in the Wedding business and the Hotel business is returning to normal, as
postponements due to COVID-19, which had been frequent until last year, have largely disappeared.
However, the outlook is difficult to predict, as the recovery in the spend per wedding stalled due to theincrease in the number of small weddings.
As a result, in the first six months of fiscal 2023, the Group posted consolidated net sales of ¥26,842
million (up 19.1% year on year) and operating income was ¥1,418 million (compared with a loss of¥349 million a year earlier). Due to foreign exchange gains of ¥789 million recorded in non-operating
income, ordinary income was ¥2,165 million (up 61.8% year on year), and profit attributable to ownersof the parent was ¥2,036 million (compared with ¥2 million a year earlier).
The results for each business segment were as follows.
1) Wedding businessIn the first six months of fiscal 2023, the number of weddings held rose slightly to 4,899 (up 1.3%
year on year), and net sales in the Wedding business also increased modestly year on year. However,there was stagnation in the recovery in the spend per wedding due to an increase in the number ofsmall weddings, and such circumstances led to a decline in profitability and thus segment profit
decreased year on year though still recorded a profit.
As a result, net sales in the Wedding business totaled ¥16,067 million (up 6.6% year on year) andsegment profit was ¥1,664 million (down 19.6%).
2) Hotel business
The number of hotel weddings held climbed slightly to 791 (up 1.7%) in the first six months of fiscal
2023. The overnight occupancy rate and average charge per night remained firm due to an increasein the number of domestic travelers and the number of foreign visitors to Japan. Inbound tourism
related-demand, which had declined sharply, is gradually recovering.

2

As a result, net sales in the Hotel business totaled ¥9,334 million (up 55.0% year on year) andsegment profit was ¥767 million (compared with a loss of ¥1,522 million a year earlier).
3) W&R businessIn the first six months of the fiscal 2023, the Beauty & Relax SPA-HERBS spa complex was selected
as first place nationwide in the “Nifty Onsen Annual Ranking” which drove the number of visitors, net
sales, and segment profit to exceed the levels of the previous fiscal year. However, the segment net
sales declined slightly mainly due to the difficulty in increasing the number of therapists and theclosure of unprofitable outlets for the British-style Queensway reflexology salons, resulting in asegment loss, although profitability is on an uptrend.
As a result, net sales in the W&R business totaled ¥1,440 million (down 0.7% year on year) andsegment loss was ¥95 million (compared with a loss of ¥191 million a year earlier).
(2) Analysis of Financial Condition
1) Assets, Liabilities, and Net Assets
Total assets as of June 30, 2023, the end of the first six months of fiscal 2023, amounted to ¥86,105
million, a decrease of ¥1,366 million from the end of the previous fiscal year (December 31, 2022). Thiswas mainly due to an increase of ¥2,634 million in other current assets offset by a ¥3,083 million
decrease in cash and deposits due to repayment of interest-bearing debt and tax payments.
Total liabilities as of June 30, 2023 came to ¥61,269 million, a decrease of ¥3,116 million from theend of the previous fiscal year (December 31, 2022). This was mainly due to a decrease of ¥835 million
in other current liabilities due to consumption tax payments and a decrease of ¥1,380 million in longterm debt (including the current portion) due to repayment.
Total net assets as of June 30, 2023 amounted to ¥24,835 million, an increase of ¥1,749 million fromthe end of the previous fiscal year (December 31, 2022). This was mainly due to an increase of ¥1,798
million in retained earnings due to the recording of profit attributable to owners of the parent. As a result,the equity ratio was 28.6%, an improvement of 2.5 percentage points from the end of the previous fiscal
year (December 31, 2022).
2) Overview of Cash Flows
Cash and cash equivalents (“cash”) as of June 30, 2023 totaled ¥18,065 million, a decrease of¥3,083 million from the end of the previous fiscal year (December 31, 2022).
Cash flows and factors behind changes in the cash flows during the six months ended June 30,
2023, are as follows.
(Cash flows from operating activities)
Cash provided by operating activities totaled ¥2,157 million (down 0.2% year on year). The change ismainly attributable to income taxes paid of ¥832 million and a decrease in consumption taxes payableof ¥822 million, which was offset by profit before income taxes of ¥2,768 million and depreciation andamortization of ¥1,814 million.
(Cash flows from investing activities)
Cash used in investing activities totaled ¥3,391 million (compared with cash provided by investing3

activities of ¥185 million a year earlier). This was mainly due to ¥1,197 million in purchase of tangible
assets to refurbish facilities/equipment and ¥2,320 million in loan advances.
(Cash flows from financing activities)
Cash used in financing activities totaled ¥2,123 million (compared with ¥2,372 million a year earlier).
This chiefly reflects inflows of ¥3,320 million from proceeds from long-term debt, which was offset by
outflows of ¥4,700 million from repayments of long-term debt and ¥467 million in payments forredemption of bonds.

(3) Earnings Forecast for the Fiscal Year Ending December 31, 2023
The consolidated results forecast for the first six months and full fiscal year ending December 31, 2023
was revised, taking into account the Company’s performance and its progress during the first six
months of fiscal 2023. For details about the forecast revision, please refer to the August 4, 2023 news
release “Notice Regarding Revisions to Consolidated Earnings Forecasts for the Six Months Ending
June 30, 2023 and the Fiscal Year Ending December 31, 2023.”

4

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

December 31, 2022

June 30, 2023

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

21,238
1,479
166
381
1,360
(37)
24,58818,154
1,258
172
364
3,995
(38)
23,907

Fixed assets
Tangible assets
Buildings and structures, net
LandConstruction in progress
Other, net
Total tangible assets

29,083
9,544
1,007
1,496
41,131

28,962
9,621
639
1,437
40,660

1,157
1,020
2,177

1,008
982
1,990

5,599
7,211
6,703
(121)
19,39262,702
181
87,472

6,032
7,095
6,385
(131)
19,382
62,033
164
86,105Intangible 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

5

(millions of yen)

December 31, 2022
AmountLiabilities
Current liabilities
Accounts payable - trade
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
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

6

June 30, 2023
Amount

2,101
7,106
964
839
3,107
62
47
4,300
18,530

1,725
7,051
994
527
3,273
34
3,464
17,071

5,703
33,722
407
953
4,535
532
45,85564,386

5,206
32,397
426
984
4,566
616
44,197
61,269472
634
22,140(892)
22,353472
634
23,938(892)
24,151

171

(102)

347
(5)
513
219
23,08687,472

554
(6)
445
238
24,835
86,105

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

Net sales
Cost of sales
Gross profit (loss)
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Gain on investments in silent partnership
Gain on investments in capital
Subsidy income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investments in capital
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Compensation income
Gain on sales of fixed assets
Gain on sales of memberships
Total extraordinary income
Extraordinary loss
Loss on disposal of fixed assets
Shop closing expenses
Loss on sales of investment securities
Other
Total extraordinary loss
Profit (loss) before income taxes
Income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of the parent

7

Six months ended
June 30, 2022
Amount22,53915,918
6,620
6,969
(349)

Six months ended
June 30, 2023
Amount26,844
17,412
9,430
8,012
1,418

19
71
856
1,313
55
2,317

62
70
56
17
789
94
1,090

227
146

251
-

28

44

228
629
1,338

47
343
2,165

0
3
3

700
0
700

0
1
34
3
40
1,301
1,296
4
2
2

51
41
4
97
2,768
732
2,035
(1)
2,036

Consolidated Statements of Comprehensive Income(millions of yen)

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

8

Six months ended
June 30, 2022
Amount4

Six months ended
June 30, 2023
Amount
2,035

(30)

-

418

(273)

235
(0)

73
(0)

313

154

936
941

(47)
1,988

902

1,969

38

19

(3) Consolidated Statements of Cash FlowsSix months
ended June 30,
2022
AmountCash flows from operating activities
Profit (loss) before income taxes
Depreciation and amortization
Amortization of goodwill
Amortization of bond issuance expenses
Loss on disposal of fixed assets
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in allowance for doubtfulreceivables
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 valuation of derivatives(Gain) loss on investments in silent partnerships
Compensation income
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 other liabilities
Decrease/increase in consumption taxes
receivable/payableOther
Sub totalInterest and dividends received
Interest paid
Proceeds from compensation
Income taxes paid
Net cash provided by (used in) operating activities

9(millions of yen)Six months
ended June 30,
2023
Amount

1,301
1,761
171
26
0

2,768
1,814
149
18
51

19

30

(2)

(45)

20
(19)
227

12
(62)
251

28

44

62
34
(0)
1
(71)
(1,230)

4
41
1
(70)
(700)
(722)

81

222

53

11

21

(382)

762
(382)

146
(91)

(398)

(822)

138
2,608
84
(227)
(304)
2,160

(192)
2,477
60
(248)
700
(832)
2,157

(millions of yen)

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
Proceeds from withdrawal of investment in silent
partnership
Loans receivable
Lease and guarantee deposits
Collection of lease and guarantee deposits
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds
Payments for redemption of bonds
Dividends paid to shareholders
Other
Net cash provided by (used in) financing activities
Foreign currency translation adjustments on cash
and cash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period10

Six months
ended June 30,

Six months
ended June 30,

2022

2023

AmountAmount

(644)
0
(212)
1,101
-

(1,197)
1
(4)
(54)

109

90

(331)
396
(234)
185

(2,320)
(155)
272
(22)
(3,391)

6,000(9,437)
1,488
(412)
(0)
(11)
(2,372)

3,320(4,700)
(467)
(238)
(38)
(2,123)

183

274

156

(3,083)

16,451
16,60821,14918,065

(4) Notes on Quarterly Consolidated Financial Statements(Note on the Going-concern Assumption)
Not applicable(Note on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Application of Specific Accounting Methods for the Preparation of Quarterly
Consolidated Financial Statements)(Simplified accounting methods)
1) Calculation method for depreciation of fixed assets
Depreciation expenses for assets to which the declining-balance method is applied are
calculated by allocating a quarterly proportion of the amount for the full fiscal year.
2) Calculation method for deferred tax assets and deferred tax liabilities
Regarding judgments on the amount of recoverable deferred tax assets, the Company has
determined that there have been no significant changes in the economic environment or
emergence of temporary differences since the end of the previous fiscal year, and therefore
the calculations are based on future earnings forecasts from the previous fiscal year and tax
planning methods.
(Special accounting treatments)
Calculation of taxes
The Company calculates tax liabilities by producing a reasonable estimate of the effective tax
rate after applying tax-effect accounting to profit (loss) before income taxes for the fiscal year,
which encompasses the second quarter ended June 30, 2023, and then multiplying profit(loss) before income taxes by this estimated effective tax rate. In cases where this estimatedeffective tax rate cannot be used, the statutory effective tax rate is used.
(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ
Guidance No. 31, June 17, 2021, hereinafter the “Fair Value Measurement Guidance”) has been
applied from the beginning of the first quarter of the fiscal year ending December 31, 2023. In
accordance with the transitional treatment set forth in Paragraph 27-2 of the Fair Value
Measurement Guidance, the new accounting policy prescribed by the Fair Value Measurement
Guidance has been applied prospectively. This application has no impact on the quarterly
consolidated financial statements.

11

(Segment Information)
I. Six months ended June 30, 2022 (January 1 to June 30, 2022)
1. Net sales and income/loss by reportable segment and information on disaggregation of revenue(millions of yen)

Reportable segment

Amountrecorded on

Weddingbusiness
Net sales
Revenue from contracts
with customers

Hotelbusiness

W&R
business

Total

consolidated
Adjustments

statements of(note 1)income (note 2)

15,012

6,020

1,450

22,483-22,483

55

-

-

55

-

55

15,068

6,020

1,450

22,539-22,539

904

445

13

1,363

(1,363)-

Total

15,973

6,466

1,463

23,902(1,363)

22,539Segment income (loss)

2,070(1,522)

(191)

356

(706)

(349)

Other revenue
Sales to outside
customers
Inter-segment sales andtransfers

Notes: 1. The minus 706 million yen adjustment for the segment income (loss) includes a 41 million yen
elimination of inter-segment sales and minus 747 million yen in corporate expenses that are not allocatedto each reportable segment. The main component of these unallocated corporate expenses is generaland administrative expenses that are not attributable to reportable segments.
2. Segment income (loss) is adjusted to correspond with operating income reported on the quarterly
consolidated statements of income.

2. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable12II. Six months ended June 30, 2023 (January 1 to June 30, 2023)
1. Net sales and income/loss by reportable segment and information on the disaggregation of revenue(millions of yen)

Reportable segment

Amountrecorded on

Weddingbusiness
Net sales
Revenue from contracts
with customers
Other revenue

Hotelbusiness

W&R
business

Total

consolidated
Adjustments

statements of(note 1)income (note 2)

16,051

9,334

1,440

26,826-

26,826

16

-

-

16

-

16

16,067

9,334

1,440

26,842-

26,842

943

477

14

1,435

(1,435)-

Total

17,010

9,811

1,455

28,277(1,435)

26,842

Segment income (loss)

1,664

767

(95)

2,336

(918)

1,418

Sales to outside
customers
Inter-segment sales andtransfers

Notes: 1. The minus 918 million yen adjustment for the segment income (loss) includes an 11 million yen
elimination of inter-segment sales and minus 930 million yen in corporate expenses that are notallocated to each reportable segment. The main component of these unallocated corporate
expenses is general and administrative expenses that are not attributable to reportable segments.
2. Segment income (loss) is adjusted to correspond with operating income (loss) reported on thequarterly consolidated statements of income.

2. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable(Revenue Recognition)
Information on the disaggregation of revenue from contracts with customers is as stated in“Notes on Quarterly Consolidated Financial Statements (Segment Information)”.

13

3. Supplementary Information(Weddings Held and Orders Received)1) Number of weddings held
Six months ended June30, 2022

Six months ended June30, 2023

Year ended
December 31, 2022

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

Segment

4,834

4,899

10,837

Hotel business

778

791

1,660

Total

5,612

5,690

12,497Six months ended June30, 2022

Six months ended June30, 2023

Year ended
December 31, 2022

Wedding business2) Wedding orders received

Segment

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

5,421

7,594

5,758

6,839

9,810

5,980

Hotel business

842

1,285

1,108

1,437

1,559

1,120

Total

6,263

8,879

6,866

8,276

11,369

7,100

Wedding business14