〔Delayed〕 The original disclosure in Japanese was released on November 11, 2021 at 15:00 (GMT+9)

November 11, 2021

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Nine Months ended September 30, 2021
(Japanese GAAP)
Stock listing: Tokyo Stock Exchange (First Section)
URL: https://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 12, 2021
No
No
(Amounts rounded down to the nearest million yen)

1. Consolidated Performance for the Nine Months ended September 30, 2021
(January 1, 2021 – September 30, 2021)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)
Profit attributable to

Net sales
million yen
Nine months ended
September 30, 2021
Nine months ended
September 30, 2020
Note: Comprehensive income:Ordinary income
million yen%

owners of the parent
million yen%%

Operating income
million yen%

21,11623.5(7,413)-(6,864)-(5,877)-

17,103(60.9)(10,879)-(10,797)-(8,717)-

Nine months ended September 30, 2021: (5,641) million yen ( - %)Nine months ended September 30, 2020: (8,898) million yen ( - %)Diluted profit
per shareyen

Profitper shareyen
Nine months ended
September 30, 2021
Nine months ended
September 30, 2020(123.23)-(182.76)-(2) Consolidated Financial Position
Total assets
million yen
September 30, 2021

Net assets

Equity ratio

million yen%

91,32099,814
December 31, 2020
Reference: Total equity: September 30, 2021: 20,610 million yen
December 31, 2020: 26,265 million yen

20,79622.6

26,43726.3

2. Dividends
End-Q1yen

End-Q2yen

Dividend per share
End-Q3yen

Year ended
0.00
December 31, 2020
Year ending
0.00
December 31, 2021
Year ending
December 31, 2021
(Forecast)
Note: No revision has been made to the latest dividends forecast.

Year-endyen

Annual total
yen

0.00

0.00

0.00

0.00

-

3. Earnings Forecast for the Fiscal Year ending December 31, 2021
(January 1, 2021 – December 31, 2021)(Percentages indicate year-on-year changes)
Net sales
million yen%

Operating income

Ordinary income

million yen

million yen

Year ending
32,500 19.9
(6,970)December 31, 2021
Note: No revision has been made to the latest earnings forecast.

%-(6,680)%

Profit attributable toProfitowners of the parent
million yen%

per shareyen-(5,820)*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 Financial
Statements)” under “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-

(122.01)

(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 end of
period3) Average number of shares outstanding
during the period

September 30, 2021

December 31, 2020

48,960,000

48,960,000

1,259,834

1,259,834

Nine Months ended
September 30, 2021

Nine Months ended
September 30, 2020

47,700,166

47,700,166* Quarterly earnings reports are exempt from quarterly reviews 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)
Any forecasts and forward-looking statements given herein are based on information available as ofthis 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 tochanges in the business environment. For the assumptions underlying the forecasts herein andother notice on the use of earnings forecasts, please refer to “(3) Earnings Forecast for the Fiscal
Year ending December 31, 2021” in the section “1. Review of Consolidated Financial Results” onpage 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, 2021
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 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
9
11
11

1. Review of Consolidated Financial Results(1) Operating Results
In the first nine months of the fiscal year ending December 31, 2021, the outlook for theJapanese economy remained uncertain owing largely to the resurgence of novel coronavirus
infections, which significantly impacted economic activities and employment conditions,stagnant consumer spending and the absence of foreign tourists due to travel restrictions.
In this environment, the Tsukada Global Holdings Group (“the Group”) focused on creating
new value, developing high-quality, appealing outlets, and providing high value-added services
in the bridal, hotel, and wellness and relaxation (W&R) markets and on taking all possible
measures to prevent coronavirus infections at all its facilities.
Although the fourth state of emergency declared due to the resurgence of novel
coronavirus infections was lifted on September 30, 2021, it severely impacted second-halfconsolidated earnings results in all segments, owing to the postponement of weddings to thenext fiscal year or beyond, the decline in the average number of guests per wedding, thedownturn in hotel occupancy and restaurant customer numbers due to travel restrictions andsluggish growth in the number of people reactivating their frozen fitness club memberships.
As a result, in the first nine months of fiscal 2021, the Group posted consolidated net salesof ¥21,116 million (up 23.5% year on year). The Group continued to record significant losses,
despite signs of a recovery from the same quarter of the previous fiscal year, with an operating
loss of ¥7,413 million (compared with a loss of ¥10,879 million a year earlier) and an ordinary
loss of ¥6,864 million (compared with a loss of ¥10,797 million a year earlier) due to the receipt
of employment adjustment subsidies and various other subsidies for suspending operations
and shortening operating hours. The net loss attributable to owners of the parent amounted to¥5,877 million (compared with a loss of ¥8,717 million a year earlier).
The results for each business segment were as follows.
1) Wedding businessIn the first nine months of fiscal 2021, during virtually all of which Japan was under a state of
emergency, sales of the wedding business appear to have bottomed out, with the number
of weddings held increasing to 4,376 (up 42.0% year on year). However, the segment
recorded a loss owing to a decline in profit margins from the decrease in the average
number of guests per wedding.
As a result, net sales in the wedding business totaled ¥12,120 million (up 17.6% year onyear) and segment loss was ¥2,705 million (compared with a loss of ¥4,515 million a year
earlier).
2) Hotel business
Segment sales increased in the first nine months of fiscal 2021 owing to the generation of acertain amount of income at some hotels during the Tokyo Olympics and an increase in thenumber of weddings held at the Group’s hotels to 761 (up 88.8% year on year), despitesluggish demand for corporate banquets, and declines in hotel occupancy and restaurant
customer numbers, which were impacted by ongoing restrictions on overseas travel thathave been in place since last year. However, the segment posted a loss as the overall2

occupancy rate remained low due to the impact of the resurgence of novel coronavirus
infections.
As a result, net sales in the hotel business came to ¥6,958 million (up 41.4% year onyear), and segment loss totaled ¥3,298 million (compared with a loss of ¥4,416 million ayear earlier).
3) W&R business
Segment sales increased in the first nine months of fiscal 2021 as customer traffic at Britishstyle Queensway reflexology salons approached pre-pandemic levels despite some outlets
having to respond to national government requests to suspend business operations, andother factors. The segment recorded a loss, however due to the lagging recovery in thenumber of members returning to Best Style Fitness comprehensive fitness club outlets.
As a result, the W&R business posted net sales of ¥2,037 million (up 8.5% year onyear) and a segment loss of ¥373 million (compared with a loss of ¥611 million a year
earlier).
(2) Analysis of Financial Conditions
Assets, Liabilities, and Net Assets
Total assets as of September 30, 2021, the end of the first nine months of fiscal 2021,
amounted to ¥91,320 million, a decline of ¥8,494 million from the end of the previous fiscal
year (December 31, 2020). The decrease mainly reflects a ¥6,006 million decline in cash anddeposits owing mainly to the impact of debt repayments and a quarterly net loss attributable toowners of the parent and a ¥1,877 million decline in tangible assets due to depreciation.
Total liabilities as of September 30, 2021, came to ¥70,523 million, a decrease of ¥2,852
million from the end of the previous fiscal year. The decrease mainly reflects a decline of¥3,009 million in long-term debt (including the current portion), which offset increases of ¥449
million in income tax payable and ¥340 million in advances received.
Net assets as of September 30, 2021, totaled ¥20,796 million, a decrease of ¥5,641 million
from the end of the previous fiscal year. The decrease was primarily due to a ¥5,877 million
decline in retained earnings owing mainly to the posting of a quarterly net loss attributable toowners of the parent.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2021
The consolidated earnings forecast for the full fiscal year ending December 31, 2021 wasrevised taking into account the Company’s performance and its progress during the first ninemonths of fiscal 2021. For details about the forecast revision please refer to the November 5,2021 news release “Notice Regarding Revisions to Consolidated Earnings Forecasts for the
Fiscal Year Ending December 31, 2021”.

3

2. Quarterly 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, 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

4

December 31, 2020
Amount(millions of yen)
September 30, 2021
Amount22,291
816
1,471
107
481
2,289
(30)
27,427

16,284
576
1,549
192
360
1,412
(40)
20,33435,128
11,929505
2,247
49,81133,395
12,182548
1,806
47,933

2,076
641
2,717

1,818
617
2,435

4,665
8,156
6,976
(99)
19,70072,229156
99,814

4,643
7,409
8,434
(105)
20,38170,750235
91,320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

5

December 31, 2020
Amount(millions of yen)
September 30, 2021
Amount

1,283
1,789
3,985
774
32
2,940
275
445
5,675
17,201

1,119
2,061
11,373
2,189
481
3,281
56
287
5,442
26,292

6,947
42,237
393
872
4,498
1,224
56,17473,376

5,535
31,840
415
903
4,521
1,014
44,231
70,523472
634
27,070(892)
27,284472
634
21,192(892)
21,406

(43)

(52)

(585)

(590)

(382)
(7)
(1,018)171
26,437
99,814

(144)
(8)
(796)
185
20,79691,320(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
Subsidy income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investments in marketable securities
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of fixed assets
Reversal of allowance for doubtful receivables
Other
Total extraordinary income
Extraordinary loss
Loss on disposal of fixed assets
Shop closing expenses
Impairment loss
Loss on valuation of investment securities
Loss on valuation of affiliated companies’ shares
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

6

Nine months
ended September
30, 2020
Amount17,10318,070(966)
9,912(10,879)

Nine months
ended September
30, 2021
Amount21,116
19,2601,856
9,270(7,413)

115
154
585
192
1,048

87
175
508
358
151
1,281

320
362
284
966
(10,797)

343
388
732
(6,864)

0
197
13
211

0
0

12
43
102
145
110
79
492
(11,077)(2,356)(8,721)(3)(8,717)24
3
28(6,892)(1,014)(5,877)0(5,877)

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

7

Nine months
ended September
30, 2020
Amount(8,721)

Nine months
ended September
30, 2021
Amount(5,877)

85

(9)

(91)

(5)

(118)
0

131
(0)

(52)

120

(176)
(8,898)236(5,641)(8,890)(5,655)(7)

14

(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 profit (loss) before income taxes for the
fiscal year, which encompasses the third quarter ended September 30, 2021 and thenmultiplying 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 isused.
(Additional Information)
As of the second quarter of the current fiscal year, the Company had assumed that the
pandemic would continue to impact the Group’s performance until around the end of thecurrent fiscal year. Although the state of emergency was lifted on September 30, 2021 as
more than 70% of the population had been fully vaccinated and the number of new
COVID-19 cases was declining, the typically cautious stance of Japanese consumers
and the current personal consumption trends are expected to continue for the time being.
Consequently, the Group now assumes that the impact of the pandemic on the Group’s
performance will continue until around the second quarter of the fiscal year ending
December 31, 2022, and has accordingly made accounting estimates including
judgments on the recoverability of deferred tax assets and the impairment of fixed assets.
However, given the many uncertainties surrounding the impact of the novel
coronavirus outbreak, the Group’s financial position and the operating results for the
fiscal year ending December 31, 2021 could be significantly affected, in the event thatsocial and economic activities stall due to further spread of infections.

8(Segment Information)[Segment Information]
I. Nine months ended September 30, 2020 (January 1 to September 30, 2020)
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

10,305

4,921

1,877

17,103-

17,103

443

109

8

561

(561)

-

Total

10,748

5,031

1,885

17,665(561)

17,103

Segment loss

(4,515)(4,416)(611)(9,544)(1,334)(10,879)

Notes: 1. Minus 1,334 million yen adjustments for the segment loss include 47 million yen elimination ofinter-segment sales and minus 1,381 million yen 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. Segment 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(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 course of the first nine months of the fiscal year ended
December 31, 2020. Hence, the book value of these assets has been written down to therecoverable amount, and the resulting loss of 102 million yen has been reported as
impairment loss under the extraordinary loss.
(Significant change in the amount of goodwill)In the “Wedding business” segment, as a result of acquiring the shares of Gloria Bridal Japan,
Inc. and of its 2 subsidiaries, Gloria Bridal Japan, Inc. and its 4 subsidiaries have been
included in the scope of consolidation, effective from the third quarter of the current fiscal year.
The amount of goodwill increased by 864 million yen during the first nine months of the fiscal
year ended December 31, 2020, as a result of these share acquisitions.

9II. Nine months ended September 30, 2021 (January 1 to September 30, 2021)
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

12,120

6,958

2,037

21,116-21,116

792

194

26

1,013

(1,013)-

Total

12,913

7,152

2,064

22,130(1,013)

21,116

Segment loss

(2,705)(3,298)(373)(6,376)(1,037)(7,413)

Notes: 1. Minus 1,037 million yen adjustments for the segment loss include 25 million yen elimination ofinter-segment sales and minus 1,062 million yen 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. Segment 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
Nine months ended
September 30, 2020

Nine months ended
September 30, 2021

Year ended
December 31, 2020

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

Segment

3,082

4,376

5,044

Hotel business

403

761

717

Total

3,485

5,137

5,761

Wedding business2) Wedding orders received
Nine months ended
September 30, 2020
Segment

Nine months ended
September 30, 2021

Year ended
December 31, 2020

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

3,462

6,898

5,580

7,542

4,864

6,338

Hotel business

597

1,225

1,006

1,423

864

1,178

Total

4,059

8,123

6,586

8,965

5,728

7,516

Wedding business11