〔Delayed〕The original disclosure in Japanese was released on May 9, 2019 at 15:00 (GMT+9)

May 9, 2019

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Three Months ended March 31, 2019
(Japanese GAAP)
Stock listing: Tokyo Stock Exchange (First Section)
Securities code: 2418
URL: https://www.tsukada-global.holdings/en/
Representative: Masayuki Tsukada, President and CEO
Information contact: Masahiro Yamazaki, Manager, Finance &Tel: +81-3-5464-0081
Accounting Department
Scheduled dates:
Filing of statutory quarterly financial report (shihanki hokokusho):May 15, 2019
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, 2019
(January 1, 2019 – March 31, 2019)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)

Net sales
million yen%

Operating income

Ordinary income

million yen

million yen%%

Profit attributable toowners of the parent
million yen%

Three months ended
13,0497.2
48
32
March 31, 2019
Three months ended
12,173
5.7
(583)
(794)
March 31, 2018
Note: Comprehensive income: Three months ended March 31, 2019: (154) million yen (- %)Three months ended March 31, 2018: (1,214) million yen (- %)Diluted profit
Profitper shareper shareyenyenThree months ended(0.91)March 31, 2019
Three months ended(7.66)March 31, 2018

(43)

-

(365)

-

(2) Consolidated Financial Position

March 31, 2019

Total assets

Net assets

million yen

million yen
96,184Equity ratio%
36,68836.6

90,84137,081
39.1
December 31, 2018
Reference: Total equity: March 31, 2019:35,168 million yen
December 31, 2018:35,548 million yen
Total equity =Shareholders’ equity plus total accumulated other comprehensive income
Note: “Partial Amendments to Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan(ASBJ) Statement No. 28, February 16, 2018) have been applied, effective from the first three months of the fiscal
year ending December 31, 2019. Figures in the financial position as of December 31, 2018 were retroactively
restated in accordance with the said ASBJ amendments.

2. Dividends
End-Q1yen

End-Q2yen

Dividend per share
End-Q3yen

Year ended
5.00
December 31, 2018Year ending
December 31, 2019Year ending
December 31, 2019
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, 2019
(January 1, 2019 – December 31, 2019)(Percentages indicate year-on-year changes)
Net sales
million yen
Six months ending
June 30, 2019Year ending
December 31, 2019%

Profit attributable toProfit%owners of the parent
million yen%

per shareyen

Operating income

Ordinary income

million yen

million yen%

29,500

5.4

1,200

11.5

1,200

20.4

650

10.4

13.63

63,000

4.7

5,500

4.8

5,560

5.8

3,100

27.9

64.99

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
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)” in
section “2. Quarterly Consolidated Financial Statements and Main Notes” on page 8 in theaccompanying materials.
(3) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
1) Changes in accordance with amendments to accounting standards, etc.: None
2) Changes other than noted in 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None(4) Shares issued (common stock)1) Number of shares issued at end of period(including treasury stock)2) Number of shares held in treasury stock at
end of period

March 31, 2019

December 31, 2018

48,960,000

48,960,000

1,259,834

1,259,834

Three Months ended Three Months ended
March 31, 2019
March 31, 2018
3) Average number of shares outstanding
during the period

47,700,166

47,700,166* This Quarterly Earnings Report is exempt from quarterly review conducted by certified public accountants
or by audit firms.
*Appropriate Use of Earnings Forecast and Other Important Information(Cautionary Statement with Respect to Forward-Looking Statements)
Any forecasts and forward-looking statements given herein are based on information available as of thisreport’s publication and on certain assumptions that are deemed reasonable. These forecasts are notguarantees of future performance, and actual results may differ from forecasts due to changes in thebusiness environment. For the assumptions underlying the forecasts herein and other notice on the use of
earnings forecasts, please refer to “(3) Earnings Forecast for the Fiscal Year ending December 31, 2019”
in the section “1. Review of Consolidated Financial Results” on page 3 in the accompanying materials.

Accompanying Material – Contents
1. Review of Consolidated Financial Results(1) Operating Results(2) Analysis of Financial Condition(3) Earnings Forecast for the Fiscal Year ending December 31, 2019
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)(Significant Subsequent Events)
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
11

1. Review of Consolidated Financial Results(1) Operating Results
In the first three months of the fiscal year ending December 31, 2019, despite uncertainties pertaining
to the global economy and trade issues, the Japanese economy stayed on its moderate recovery
track, with an improvement in employment conditions and corporate earnings and an upturn inpersonal spending.
In this environment, the Tsukada Global Holdings Group (“the Group”) endeavored to expand
sales and enhance profitability by accurately responding to customers’ increasingly individualized anddiversifying needs in the bridal, hotel, and wellness and relaxation (W&R) markets while working tocreate new value, develop high-quality, appealing outlets, and provide high value-added services.
During the quarter, the Group has taken steps to expand earnings and geographical operatingareas. For example, we prepared for the opening of Kimpton Hotel Shinjuku, Tokyo (provisionalname), scheduled to open in 2020. We also increased internal handling of mainstay products of ourwedding business, such as photographs, videos, audio, and floral decorations, and expanded
external sales of these bridal products.
As a result of these efforts, in the first quarter of 2019, Tsukada Global Holdings Inc. (“theCompany”) posted consolidated net sales of ¥13,049 million (up 7.2% year on year). The Company
recorded a first-quarter operating income of ¥48 million (compared with a loss of ¥583 million a year
earlier) and an ordinary income of ¥32 million (compared with a loss of ¥794 million a year earlier).
The net loss attributable to owners of the parent amounted to ¥43 million (compared with a loss of¥365 million a year earlier).
The results for each business segment were as follows.
1) Wedding businessIn the first three months of fiscal 2019, the wedding business achieved sales growth supported byan increase in the number of weddings in Japan (the business’s core area) and strong spend per
wedding figures. Segment income also grew largely due to the Company’s pursuit of increased
internal handling of the various materials related to wedding ceremonies, such as photographs,
videos, audio, and floral decorations.
As a result, net sales in the wedding business totaled ¥7,919 million (up 11.7% year on year)
and segment income totaled ¥569 million (compared with a loss of ¥103 million a year earlier.
2) Hotel business
The number of weddings held at our hotels decreased slightly in the first quarter of fiscal 2019, butsegment sales increased slightly on overall strong figures for hotels’ overnight occupancy rates
and average charge per night. However, segment income declined as a result of expenses
incurred in preparations for the opening of Kimpton Hotel Shinjuku, Tokyo (provisional name) inaddition to the decrease in the number of weddings.
As a result, net sales in the hotel business came to ¥4,189 million (up 0.5% year on year), andsegment income totaled ¥17 million (down 72.7% year on year).
3) W&R business (Wellness & Relaxation business)
This segment achieved sales growth in the first quarter, due to the impact of the Best Style Fitness2

Kaihin Makuhari comprehensive fitness club that opened in December 2018. However, thesegment posted an operating loss owing to a delay in increasing membership of some of its othercomprehensive fitness club outlets.
As a result, the W&R business posted net sales of ¥939 million (up 2.9% year on year) and an
operating loss of ¥116 million (compared with a loss of ¥128 million a year earlier).
(2) Analysis of Financial Condition
Assets, Liabilities, and Net Assets
Total assets as of March 31, 2019, the end of the first three months of fiscal 2019, amounted to¥96,184 million, an increase of ¥5,342 million from the end of the previous fiscal year (December
31, 2018). The increase mainly reflects increases of ¥1,709 million in cash and deposits related tofinancing and ¥4,375 million in other fixed assets (mainly construction in progress) related to theconstruction of Kimpton Hotel Shinjuku, Tokyo (provisional name).
Total liabilities as of March 31, 2019, came to ¥59,495 million, an increase of ¥5,735 million fromthe end of the previous fiscal year. The increase reflects a ¥5,010 million increase in long-term debt,
including the current portion, related to financing capital investments.
Net assets as of March 31, 2019, totaled ¥36,688 million, ¥393 million less than at the end of theprevious fiscal year. The major changes are a ¥282 million reduction in retained earnings owing to
the payment of dividends and the posting of a quarterly net loss attributable to owners of the parent
and a ¥138 million decrease due to the booking of deferred loss on derivatives under hedge
accounting.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2019
There is no change to the consolidated earnings forecasts for the six months ending June 30, 2019,
and the full fiscal year ending December 31, 2019, which the Company announced in its fiscal 2018
Consolidated Earnings Report dated February 14, 2019.

3

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

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

4

December 31, 2018

March 31, 2019

AmountAmount24,206
1,281
289
127
490
1,136
(24)
27,50625,915
1,236
199
125
483
1,107
(20)
29,04825,361
15,553
3,695
44,61024,531
15,554
8,070
48,156

1,738
184
1,922

1,675
192
1,868

2,557
8,152
6,138
(206)
16,641
63,174160
90,841

2,656
8,128
6,372
(206)
16,95066,975160
96,184

(millions of yen)

December 31, 2018
AmountLiabilities
Current liabilities
Accounts payable - trade
Short-term debt
Current portion of long-term debt
Current portion of bonds
Income taxes payable
Advances received
Other
Total current liabilities
Fixed liabilities
Bonds
Long-term debt
Net defined benefit liability
Provision for directors’ retirement benefits
Asset retirement obligations
Other
Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gain (loss) on available-for-salesecurities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

March 31, 2019
Amount

2,437
3,172
590
1,313
1,884
4,381
13,778

2,296
540
3,443
590
354
2,172
4,428
13,824

3,125
32,614
302
784
2,391
762
39,98153,7594,115
37,354
306
794
2,402
698
45,67059,495472
634
35,849(892)
36,063472
634
35,567(892)
35,781

(142)

(109)

(249)

(387)

(118)
(4)
(514)
1,533
37,081
90,841

(111)
(4)
(612)
1,520
36,68896,184

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividend income
Gain on investments in silent partnership
Real estate rental income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Real estate rental expenses
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of fixed assets
Total extraordinary income
Extraordinary loss
Loss on disposal of fixed assets
Shop closing expenses
Loss on redemption of investment securities
Other
Total extraordinary loss
Profit (loss) before income taxes
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of the parent

6

Three months
ended March 31,
2018
Amount12,173
9,173
3,000
3,584
(583)

Three months
ended March 31,
2019
Amount13,049
9,157
3,891
3,843
48

8
2
71
59
12
153

6
73
88
24
193

52
29
25
251
5
364
(794)

129
71
8
209
32

492
492

-

12
37
7
57
(359)
(0)
(358)
7
(365)

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

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
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to noncontrolling interests

7

Three months
ended March 31,
2018
Amount(358)

Three months
ended March 31,
2019
Amount
(56)

(26)

33

(206)

(138)

(623)
0
(855)
(1,214)

7
(0)
(97)
(154)

(1,127)

(141)

(87)

(13)

(3) Notes on Quarterly Consolidated Financial Statements(Note on the Going-concern Assumption)
Not applicable(Note on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Application of Specific Accounting Methods for the Preparation of Quarterly 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 thecalculations are based on future earnings forecasts from the previous fiscal year and tax
planning methods.
(Special accounting treatments)
Calculation of taxes
The Company calculates tax liabilities by producing a reasonable estimate of the effective tax
rate after applying tax-effect accounting to profit (loss) before income taxes for the fiscal year,
which encompasses the first quarter ended March 31, 2019, and then multiplying profit (loss)
before income taxes by this estimated effective tax rate. In cases where this estimated effective
tax rate cannot be used, the statutory effective tax rate is used.
(Additional Information)(Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)“Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement
No. 28 of February 16, 2018) have been applied, effective from the first three months of the
fiscal year ending December 31, 2019. Accordingly, deferred tax assets are shown under theheading of investments and other assets, while deferred tax liabilities are shown under theheading of fixed liabilities.

8

(Segment Information)
I. Three months ended March 31, 2018 (January 1 to March 31, 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

7,093

4,167

912

12,173-

12,173

286

80

0

366

(366)

-

Total

7,379

4,247

912

12,540(366)

12,173

Segment income (loss)

(103)

65

(128)

(166)

(417)

(583)

Notes: 1. Minus 417 million yen adjustments for the segment income or loss include 13 million yen elimination ofinter-segment sales and minus 430 million yen corporate expenses that are not allocated to eachreportable segment. The main component of these unallocated corporate expenses is general andadministrative expenses that are not attributable to reportable segments.
2. Segment income or loss adjustments are based on operating loss reported on the quarterly consolidated
statements of income for the corresponding period.

2. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable9II. Three months ended March 31, 2019 (January 1 to March 31, 2019)
1. Net sales and income/loss by reportable segment(millions of yen)

Reportable segment
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
Total
Segment income (loss)

7,919

4,189

939

13,049-13,049

344

78

3

426

(426)

-

8,264

4,268

942

13,475(426)

13,049

569

17

(116)

470

(422)

48

Notes: 1. Minus 422 million yen adjustments for the segment income or loss include 32 million yen elimination ofinter-segment sales and minus 455 million yen corporate expenses that are not allocated to eachreportable segment. The main component of these unallocated corporate expenses is general andadministrative expenses that are not attributable to reportable segments.
2. Segment income or loss adjustments are based on operating 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(Significant Subsequent Events)
On May 8, 2019, the Company’s Board of Directors adopted a resolution to establish a new subsidiary.
1. Purpose of Establishing a Subsidiary
The Group has positioned its hotel business as one of its important business strategies.
Accordingly, a new subsidiary is to be established for the purpose of managing “Kimpton Hotel
Shinjuku, Tokyo (provisional name),” due to be operational in 2020.
2. Profile of the Subsidiary(1) Trade name:BEST LIFE STYLE Inc.
(2) Office address:
11-10, Higashi 3-chome, Shibuya-ku, Tokyo(3) Representative:
Masayuki Tsukada, Representative Director(4) Paid-in capital:
100 million yen(5) Business activity:
Management of Kimpton Hotel Shinjuku, Tokyo (provisional name)(6) Date of establishment: May 8, 2019(7) Shareholding ratio:
100%

3. Supplementary Information(Weddings Held and Orders Received)1) Number of weddings held

Segment

Three months ended
March 31, 2018

Three months ended
March 31, 2019Year ended
December 31, 2018

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

2,422

2,420

12,806

Hotel business

363

359

1,712

Total

2,785

2,779

14,518

Wedding business2) Wedding orders received

Segment

Three months ended
March 31, 2018

Three months ended
March 31, 2019Year ended
December 31, 2018

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

4,031

8,558

3,804

8,503

12,976

7,119

Hotel business

495

1,248

474

1,294

1,775

1,179

Total

4,526

9,806

4,278

9,797

14,751

8,298

Wedding business11