〔Delayed〕The original disclosure in Japanese was released on May 8, 2015 at 15:00 (GMT+9)

May 8, 2015

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Three Months ended March 31, 2015
(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: Keiji Ishihara, Director
Tel: +81-3-5464-0081
Scheduled dates:
Filing of statutory quarterly financial report(shihanki hokokusho): May 15, 2015
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, 2015
(January 1, 2015 – March 31, 2015)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)

Net sales
million yen
Three months ended
March 31, 2015
Three months ended
March 31, 2014
Note: Comprehensive income:Ordinary income
million yen%

Net income
million yen%%

Operating income
million yen%

10,757

(1.7)

(165)

-

(112)

-

(128)

-

10,942

12.9

514

(8.3)

573

(10.5)

318

5.4

Three months ended March 31, 2015: (267) million yen (- %)Three months ended March 31, 2014: 307 million yen (-36.2 %)Diluted net income
per shareyen

Net income
per shareyen
Three months ended
March 31, 2015
Three months ended
March 31, 2014

(2.64)

-

6.51

5.81

(2) Consolidated Financial Position

March 31, 2015

Total assets

Net assets

million yen

million yen
66,13028,19867,26928,710December 31, 2014
Reference: Total equity: March 31, 2015:
28,198 million yen
December 31, 2014: 28,710 million yen
Total equity =Shareholders’ equity plus total accumulated other comprehensive income.

Equity ratio
%
42.6
42.7

2. Dividends
End-Q1yen

End-Q2yen

Dividend per share
End-Q3yen

Year ended
5.00
December 31, 2014
Year ending
December 31, 2015
Year ending
December 31, 2015
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, 2015
(January 1, 2015 – December 31, 2015)(Percentages indicate year-on-year changes)
Net sales
million yen%

Operating income

Ordinary income

million yen

million yen%%

Net income

Net income
million yen%

per shareyen

Six months ending
June 30, 2015

25,2907.6

1,770(10.7)

1,780(13.0)

1,130

(8.0)

23.14

Year ending
December 31, 2015

56,420

9.1

6,470

1.0

6,490

(3.3)

4,200

(2.2)

86.02

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 “(2) Application of Specific Accounting Methods for
the Preparation of Quarterly Financial Statements” in Section “2. Other Information”
on page 3 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.: 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 end of
periodMarch 31, 2015

December 31, 2014

48,960,000

48,960,000

131,534

131,534

Three Months ended Three Months ended
March 31, 2015
March 31, 2014
3) Average number of shares outstanding during
the period

48,828,466

48,828,488* Quarterly Review Status
This report is exempt from the review requirements of Japan’s Financial Instruments and Exchange Act. As ofthis report publication, a review of the consolidated quarterly financial statements in accordance with the Act
is underway.
*Appropriate Use of Earnings Forecast and Other Important Information
The above forecasts are based on information available as of this report’s publication and on
certain assumptions that are deemed reasonable. 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, 2015” 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) Financial Condition(3) Earnings Forecast for the Fiscal Year ending December 31, 2015
2. Other Information(1) Changes in Significant Subsidiaries(2) Application of Specific Accounting Methods for the Preparation of Quarterly
Financial Statements(3) Changes in Accounting Policy, Changes in Accounting Estimates, andRetrospective Restatement
3. Consolidated Financial Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income(3) Notes on the Quarterly Financial Statements(Note on the Going-concern Assumption)(Note on Significant Changes in the Amount of Shareholders’ Equity)(Segment and Other Information)
4. Supplementary Information

1

2
2
3
3
3
3
3
4
5
5
7
7
8
9
9
9
10
12

1. Review of Consolidated Financial Results(1) Operating Results
In the first three months of the fiscal year ending December 31, 2015, the Japanese economy
remained on a moderate recovery track thanks to increased exports, an improved employment
environment in addition to the positive effect of lower crude oil prices and higher share prices. Thatsaid, uncertainty over the economic outlook persists owing to concerns over financial instability andeconomic downturns in Europe and newly emerging countries.
Amid this environment, the Tsukada Group endeavored to increase sales and profitability bycontinuing to actively work towards creating new value in the bridal, hotel and relaxation markets;
creating high-quality, appealing outlets; and providing high value-added services in order toaccurately respond to customer needs that are becoming more individualized and varied.
Nevertheless, the number of weddings held and orders placed at existing outlets fell sharply from thesame period a year earlier primarily due to changes in the market environment.
As a result of the above factors, the Group posted consolidated net sales of ¥10,757 million in thefirst quarter of the current fiscal year, a decrease of 1.7% from the same period of the previous fiscal
year. The Group recorded an operating loss of ¥165 million, compared with an operating income of¥514 million in the first quarter of the previous fiscal year, an ordinary loss of ¥112 million, versus an
ordinary income of ¥573 million in the corresponding period the year before, and a net loss of ¥128
million, against net income of ¥318 million in the same period of the previous fiscal year.
The results for each business segment were as follows.
Note that the Group’s reporting segments have been changed, starting from the first quarter of the
fiscal year ending December 31, 2015. The year-on-year comparisons presented below are basedon figures for the same period of the previous fiscal year adjusted for the change in reportablebusiness segments for the current fiscal year.
1) Domestic wedding businessIn the first quarter of the fiscal year, the number of small weddings held and orders placed remained
steady, but overall sales declined owing to the reduction in the number of weddings held at existingoutlets during the term.
As a result, net sales in the domestic wedding business totaled ¥6,365 million, a year-on-year
decrease of 13.7%, and segment operating income came to ¥255 million, down 75.1% from the firstquarter of the previous fiscal year.
2) Hotel business
During the first quarter, sales of the Hotel InterContinental Tokyo Bay and The Strings byInterContinental Tokyo were firm and contributed to segment sales growth, mainly boosted by theincrease in the number of foreign visitors to Japan. In addition, although the number of orders placedat the Group’s Sasashima outlet in Nagoya scheduled to open this November is growing steadily, it
booked ¥78 million for the outlet-opening preliminary expenses.
As a result, net sales in the hotel business reached ¥3,047 million, a year-on-year increase of 5.0%.
The segment recorded an operating loss of ¥25 million compared with a segment operating incomeof ¥37 million during the same period of the previous fiscal year.
3) Overseas business
During the first quarter, even though market growth was stable and the number of weddings held for2

non-Japanese couples rose, the number of weddings held and orders placed declined from thecorresponding period the year before.
As a result, net sales in the overseas business totaled ¥635 million, a year-on-year decrease of
4.5%, and the segment booked an operating loss of ¥43 million, versus a segment operating loss of¥49 million during the same period of the previous fiscal year.
4) W&R business (Wellness & Relaxation business)
In the first quarter, market conditions were strong and the average spend per customer and numberof customers were steady.
As a result, net sales in the W&R business totaled ¥709 million and segment operating income
came to ¥21 million.
(2) Financial Condition
Assets, liabilities, and net assets
Total assets at the end of the first quarter (March 31, 2015) amounted to ¥66,130 million, a decreaseof ¥1,138 million from the end of the previous fiscal year (December 31, 2014). This was chiefly due
to a decrease of ¥2,532 million in cash and deposits, which eclipsed an ¥886 million increase in leaseand guarantee deposits.
Liabilities at the end of the first quarter totaled ¥37,931 million, a decrease of ¥626 million comparedwith the end of the previous fiscal year. The decline in liabilities is attributable to a decrease of ¥1,225
million in income taxes payable and a drop of ¥444 million in other current liabilities, which more thanoffset such factors as the ¥820 million net increase in debt and bonds as well as a ¥534 million
increase in advances received.
Net assets at the end of the first quarter totaled ¥28,198 million, a decrease of ¥511 million fromthe end of the previous fiscal year. This decrease was mainly due to the booking of a ¥128 million net
loss for the period and the ¥244 million in dividends paid from retained earnings.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2015
There is no change to the consolidated earnings forecasts for the six months ending June 30, 2015
and the year ending December 31, 2015, which the Company announced on February 13, 2015.
2. Other Information(1) Changes in Significant Subsidiaries
Not applicable.
(2) 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 byallocating a quarterly proportion of the amount for the full financial year.

3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 emergenceof temporary differences since the end of the previous financial year, and therefore the calculations
are based on future earnings forecasts from the previous 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 and minority interests for the fiscal
year, which encompasses the three months ended March 31, 2015, and then multiplying income(loss) before income taxes and minority interests by this estimated effective tax rate. In cases where
this estimated effective tax rate cannot be used, the statutory effective tax rate is used.
(3) Changes in Accounting Policy, Changes in Accounting Estimates, and Retrospective
Restatement(Application of Accounting Standard for Retirement Benefits, etc.)“Accounting Standard for Retirement Benefits” (Accounting Standards Board of Japan - ASBJ Statement No. 26 of May 17, 2012) and “Guidance on Accounting Standard for Retirement Benefits”(ASBJ Guidance No. 25 of March 26, 2015) have now been applied, effective from the first quarterof the current consolidated fiscal year ending December 31, 2015, in accordance with the provisionsof Article 35 of the Accounting Standard for Retirement Benefits and Article 67 of the Guidance on
Accounting Standard for Retirement Benefits. As a result, the method for calculating retirement
benefit obligations and service costs, as well as the method of determining the discount rate, hasbeen revised, and the method for attributing projected benefits to periods has been changed fromthe straight-line basis to the benefit formula basis.
As at the beginning of the first quarter of the current fiscal year, there was no effect resulting fromthe said revision on the net defined benefit liability, retained earnings and on the income statement.

43. Consolidated Financial Statements(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
Allowance for doubtful receivables
Total investments and other assets
Total fixed assets
Deferred assets
Total assets

5

December 31, 2014

(millions of yen)March 31, 2015

AmountAmount13,441
871
4,214
40
480
1,922
(46)
20,923

10,908
835
4,232
44
516
2,400
(44)
18,892

14,835
11,0232,251
28,10914,625
11,0282,455
28,108

2,805
193
2,999

2,738
209
2,948

3,920
7,676
3,695
(164)
15,127
46,236
108
67,269

3,988
8,562
3,673
(157)
16,067
47,124
113
66,130Liabilities
Current liabilities
Accounts payable - trade
Short-term debt
Current portion of long-term debt
Current portion of bonds
Income taxes payable
Advances received
Provision for point card certificates
Other
Total current liabilities
Fixed liabilities
Bonds
Convertible 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 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
Total net assets
Total liabilities and net assets

6

December 31, 2014
Amount(millions of yen)March 31, 2015
Amount

2,327
2,426
684
1,634
1,188
18
3,184
11,463

2,081
260
2,481
774
408
1,722
2,740
10,4693,422
5,000
15,613
308
681
1,419
650
27,09438,5583,955
5,000
15,494
318
657
1,403
632
27,46237,931

472
634
27,238(88)
28,256472
634
26,865(88)
27,883

167

83

7

-

282
(3)
454
28,71067,269234(2)315
28,198
66,130(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
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
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
Loss on store closing
Total extraordinary loss
Income (loss) before income taxes and minority
interests
Income taxes
Income (loss) before minority interests
Minority interests in income (loss)
Net income (loss)

7

Three months
ended March 31,
2014
Amount10,942
7,606
3,336
2,821
514

(millions of yen)Three months
ended March 31,
2015
Amount10,757
7,708
3,049
3,214
(165)

18
27
59
29
134

21
25
60
18
126

53
18
3
75
573

56
10
5
73
(112)

-

0
0

21
21

1
2
3

551

(115)

235
316
(1)
318

12
(128)
(128)

Consolidated Statements of Comprehensive Income

Income or (loss) before minority interests
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 minority
interests

8

Three months
ended March 31,
2014
Amount316(millions of yen)Three months
ended March 31,
2015
Amount
(128)

(1)

(83)

(16)

(7)

9
(8)
307

(48)
0
(138)
(267)

307

(267)

-

-

(3) Notes on the Quarterly Financial Statements(Note on the Going-concern Assumption)
Not applicable(Note on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable9(Segment and Other Information)(Segment Information)
I. Three months ended March 31, 2014 (January 1 to March 31, 2014)
1. Net sales and income/loss by reportable segment(millions of yen)

Reportable segment

Amountrecorded on

Domestic
weddingbusinessHotelbusiness

7,375

2,901

665

-

10,942-

10,942

167

38

-

-

205

(205)

-

Total

7,543

2,939

665

-

11,148(205)

10,942

Segment income (loss)

1,022

37

(49)

-

1,010

(495)

514

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

Notes:

Overseasbusiness

W&R
business

Adjustments

Total(note 1)

consolidated
statements ofincome (note 2)

1. Minus 495 million yen adjustments for the segment income or loss includes 12 million yen
elimination of inter-segment sales and minus 508 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 Change in the amount of Goodwill)In the “Hotel business” segment, Best Global, Inc., a consolidated subsidiary of the Company,
acquired the business operation pertaining to the management of The Strings by InterContinental
Tokyo. Consequently, the amount of goodwill increased by 618 million yen in the first quarter ended
March 31, 2014.

10

II. Three months ended March 31, 2015 (January 1 to March 31, 2015)
1. Net sales and income/loss by reportable segment(millions of yen)

Reportable segment

Net sales
Sales to outside
customers
Inter-segment sales
and transfers
Total
Segment income (loss)
Notes:

Amountrecorded on

Domestic
weddingbusinessHotelbusiness

6,365

3,047

635

709

10,757-

10,757

192

50

-

-

242

(242)

-

6,557

3,097

635

709

11,000(242)

10,757

255

(25)

(43)

21

207

(372)

(165)

Overseasbusiness

W&R
business

Adjustments

Total

consolidated(note 1)statements ofincome (note 2)

1. Minus 372 million yen adjustments for the segment income or loss includes 5 million yen
elimination of inter-segment sales and minus 378 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. Change in Reportable Segment(Change in classification of reportable segments)
Effective from the first quarter of the current consolidated fiscal year ending December 31, 2015,
Yagoto outlet and Sasashima outlet, which used to belong to the “Domestic wedding business”
segment, are now classified in the “Hotel business” segment. This is in accordance with the change
in the management segmentation for the purpose of evaluating and managing the businessperformance of each reportable segment more appropriately.
Consequently, compared to the old classification, net sales of the “Hotel business” segment
increased by 395 million yen, and its segment loss increased by 67 million yen, while net sales of
the “Domestic wedding business” decreased by 395 million yen and its segment income grew by
67 million yen.
The segment information for the first quarter of the previous consolidated fiscal year has been
restated, reflecting this segment change.
3. Impairment loss on fixed assets or goodwill by reportable segment
Not Applicable11

4. Supplementary Information
Weddings Held, Orders Received, and Sales volume
1) Number of weddings held

Segment

Three months ended
March 31, 2014

Three months ended
March 31, 2015

Year ended December
31, 2014

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

Domestic wedding

2,068

1,835

9,873

Hotel business

258

269

1,133

Overseas business

585

485

3,025

Total

2,911

2,589

14,031business

Note: Classification of reportable segments has been changed since the first three months ended March 31,
2015. The figures for the three months ended March 31, 2014 and for the full year ended December 31, 2014,
have been readjusted to the new reportable segments.

2) Orders received

Segment
Domestic wedding

Three months ended
March 31, 2014

Three months ended
March 31, 2015

Year ended December
31, 2014

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

3,011

6,325

2,737

6,190

9,779

5,288

Hotel business

358

774

533

1,109

1,304

845

Overseas business

789

1,681

729

1,618

2,922

1,374

Total

4,158

8,780

3,999

8,917

14,005

7,507

business

Note: Classification of reportable segments has been changed since the first three months ended March 31,
2015. The figures for the three months ended March 31, 2014 and for the full year ended December 31, 2014,
have been readjusted to the new reportable segments.

3) Sales volume

Segment
Domestic wedding

Three months ended
March 31, 2014

Three months ended
March 31, 2015

Year ended December
31, 2014

million yen

million yen

million yen

7,375

6,365

35,023

2,901

3,047

12,462

Overseas business

665

635

3,458

W&R business

-

709

747

10,942

10,757

51,691business
Hotel business

Total

12

Notes: 1. Classification of reportable segments has been changed since the first three months ended March 31, 2015.
The figures for the three months ended March 31, 2014 and for the full year ended December 31, 2014,
have been readjusted to the new reportable segments.
2. Inter-segment transactions have been eliminated from the amounts shown above.
3. The above amounts do not include consumption tax.

13