〔Delayed〕 The original disclosure in Japanese was released on August 12, 2021 at 15:00 (GMT+9)

August 12, 2021

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Six Months ended June 30, 2021
(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: Masahiro Yamazaki, Manager, Finance &Tel:+81-3-5464-0081
Accounting Department
Scheduled dates:
Filing of statutory quarterly financial report (shihanki hokokusho):August 13, 2021
Dividend payout:
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, 2021
(January 1, 2021 – June 30, 2021)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)

Net sales

million yen%
million yen%
million yen
Six months ended
13,126
11.3(5,518)(5,007)
June 30, 2021
Six months ended
11,793(59.4)(7,740)(8,186)
June 30, 2020
Note: Comprehensive income: Six months ended June 30, 2021: (4,297) million yen (- %)Six months ended June 30, 2020: (6,856) million yen (- %)%-(4,452)--(6,719)-Diluted profit
per shareyen

Profitper shareyen
Six months ended
June 30, 2021
Six months ended
June 30, 2020

Profit attributable toowners of the parent
million yen%

Ordinary income

Operating income(93.34)-(140.86)-(2) Consolidated Financial Position

June 30, 2021

Total assets

Net assets

Equity ratio

million yen

million yen%

93,807

99,814
December 31, 2020
Reference: Total equity: June 30, 2021:
21,956 million yen
December 31, 2020: 26,265 million yen

22,14023.4

26,43726.3

2. Dividends
End-Q1yen

End-Q2yen

Dividend per share
End-Q3yen

Year-endyen

Annual total
yen

-

0.00

0.00

-

0.00

0.00

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.

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

Operating income

million yen%
million yen%
Year ending
38,000 40.1
(2,900)December 31, 2021
Note: No revision has been made to the latest earnings forecast.

Profit attributable toowners of the parent
million yen%

Ordinary income
million yen(2,610)%-(2,510)-*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 Financial
Statements)” under “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.: None
2) Changes other than noted in 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None

Profitper shareyen(52.62)

(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

June 30, 2021

December 31, 2020

48,960,000

48,960,000

1,259,834

1,259,834

Six Months ended
June 30, 2021

Six Months ended
June 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 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, 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) 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 Financial
Statements)(Additional Information)(Segment Information)
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
14
14

1. Review of Consolidated Financial Results(1) Operating Results
In the first six months of the fiscal year ending December 31, 2021, the outlook for theJapanese economy remained uncertain due to the resurgence of novel coronavirus infections,which significantly impacted economic activities and employment conditions, as well as thedeclaration of a fourth state of emergency and uncertainty as to when the pandemic will cometo an end.
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. However, all segments of theGroup were severely impacted by ongoing restrictions on overseas travel, declines in hotel
occupancy and restaurant customer numbers (due to government requests for people torefrain from outings and for businesses to shorten operating hours), postponement of
weddings, and sluggish growth in the number of people reactivating their frozen fitness clubmemberships.
As a result, in the first six months of fiscal 2021, the Group posted consolidated net sales of¥13,126 million (up 11.3% year on year). The Group continued to record significant losses,
despite signs of a bottoming out, with an operating loss of ¥5,518 million (compared with a lossof ¥7,740 million a year earlier) and an ordinary loss of ¥5,007 million (compared with a loss of¥8,186 million a year earlier). The net loss attributable to owners of the parent amounted to¥4,452 million (compared with a loss of ¥6,719 million a year earlier).
The results for each business segment were as follows.
1) Wedding businessIn the first six months of fiscal 2021, sales of the wedding business appeared to havebottomed out, despite the unclear prospects for an end to the ongoing pandemic, with thenumber of weddings held increasing to 2,817 (up 31.6% year on year). Although efforts
were made to streamline wedding services through in-sourcing, the segment recorded aloss due to a decrease in the gross margin with stagnant sales and a decline in the average
number of guests per wedding.
As a result, net sales in the wedding business totaled ¥7,942 million (up 10.9% year onyear) and segment loss was ¥1,793 million (compared with a loss of ¥3,464 million a year
earlier).

2) Hotel business
Segment sales increased slightly in the first six months of fiscal 2021 owing to an increasein the number of weddings held at the Group’s hotels to 510 (up 80.2% year on year),
despite sluggish demand for corporate banquets, and declines in hotel occupancy andrestaurant customer numbers, which were impacted by ongoing restrictions on overseas
travel. The segment posted a loss despite efforts to control costs through such measures as
efficient human resource allocation and shift management.
As a result, net sales in the hotel business came to ¥3,869 million (up 10.8% year onyear), and segment loss totaled ¥2,729 million (compared with a loss of ¥2,863 million a2

year earlier).
3) W&R business
Segment sales increased in the first six 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 and local government requests to suspend
business operations, and other factors. The segment recorded a loss, however due to thelagging recovery in the number of members returning to Best Style Fitness comprehensive
fitness club outlets.
As a result, the W&R business posted net sales of ¥1,314 million (up 15.3% year onyear) and a segment loss of ¥283 million (compared with a loss of ¥538 million a year
earlier).

(2) Analysis of Financial Conditions
1) Assets, Liabilities, and Net Assets
Total assets as of June 30, 2021, the end of the first six months of fiscal 2021, amounted to¥93,807 million, a decline of ¥6,006 million from the end of the previous fiscal year (December
31, 2020). The decrease mainly reflects a ¥3,790 million decline in cash and deposits owing
mainly to the recording of a quarterly net loss attributable to owners of the parent and a ¥1,191
million decline in tangible assets due to depreciation.
Total liabilities as of June 30, 2021, came to ¥71,666 million, a decrease of ¥1,709 million
from the end of the previous fiscal year. The decrease mainly reflects a decline of ¥1,984
million in long-term debt (including the current portion) and a decrease of ¥387 million in bonds(including the current portion), which offset an increase in advances received of ¥569 million.
Net assets as of June 30, 2021, totaled ¥22,140 million, a decrease of ¥4,297 million fromthe end of the previous fiscal year. The decrease was primarily due to a ¥4,452 million decline
in retained earnings owing mainly to the posting of a quarterly net loss attributable to owners of
the parent.
2) Overview of Cash flows
Cash and cash equivalents (“cash”) at the end of the first half totaled ¥18,412 million, ¥3,790
million less than at the end of the previous fiscal year. Cash flows and factors behind changes
in the cash flows during the six months ended June 30, 2021, are as follows.
(Operating Cash Flow)
Cash used in operating activities totaled ¥1,915 million (cash used in the first half of theprevious year was ¥9,471 million). The change is mainly attributable to a ¥5,033 million loss
before income tax, which offset ¥1,833 million in depreciation and amortization and ¥1,008
million in decrease/increase in consumption taxes receivable/payable.
(Investing Cash Flow)
Cash provided by investing activities totaled ¥305 million (cash used in the first half of theprevious year was ¥6,666 million). This is mainly attributable to ¥642 million from collection oflease and guarantee deposits which offset ¥385 million in payments for purchase of tangible
assets to refurbish facilities/equipment.

3

(Financing Cash Flow)
Cash used in financing activities totaled ¥2,205 million (cash provided in the first half of theprevious year was ¥5,773 million). This chiefly reflects ¥1,994 million in repayments of longterm debt and ¥387 million in payments for redemption of bonds.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2021
The consolidated earnings forecast for the first six months and the full fiscal year ending
December 31, 2021 was revised taking into account the Company’s performance and its
progress during the first six months of fiscal 2021. For details about the forecast revision
please refer to the August 6, 2021 news release “Notice Regarding Revisions to Consolidated
Earnings Forecasts for the Six Months Ending June 30, 2021 and the Fiscal Year Ending
December 31, 2021”.

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

December 31, 2020
AmountAssetsCurrent 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

5(millions of yen)
June 30, 2021
Amount22,291
816
1,471
107
481
2,289
(30)
27,42718,500
561
1,567
96
444
1,312
(32)
22,45035,128
11,929505
2,247
49,811

33,954
12,139557
1,968
48,620

2,076
641
2,717

1,904
617
2,521

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

4,699
7,480
7,891
(104)
19,967
71,108247
93,807

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 on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments
Remeasurements of defined benefit plan
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6

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

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

1,070
2,061
7,909
724
348
3,510
109
418
5,553
21,705

6,947
42,237
393
872
4,498
1,224
56,17473,3766,610
36,328
408
893
4,513
1,206
49,961
71,666472
634
27,070(892)
27,284472
634
22,618(892)
22,832

(43)

(47)

(585)

(636)

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

(183)
(8)
(875)
183
22,14093,807

(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
Share of loss of entities accounted for using equity
methodForeign exchange loss
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary Income
Gain on sales of fixed assets
Gain on valuation of investment securities
Total extraordinary gain
Extraordinary loss
Loss on disposal of fixed assets
Shop closing expenses
Loss on valuation of investment securities
Loss on valuation of affiliated companies’ shares
Provision of allowance for doubtful receivables
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,
2020
Amount11,793
12,554(760)
6,979(7,740)Six months
ended June 30,
2021
Amount13,126
12,672454
5,972(5,518)

86
73
16
61
237

58
94
371
298
113
936

363
162

229
-

32

100

76
48
683
(8,186)95
425(5,007)

0
64
64

0
0

6
41
145
110
27
134
465
(8,587)(1,868)(6,719)(6,719)24
1
26(5,033)(581)(4,452)(0)(4,452)

Consolidated Statements of Comprehensive Income

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,
2020
Amount(6,719)(millions of yen)Six months
ended June 30,
2021
Amount(4,452)

(31)

(4)

(28)

(51)

(45)
0

108
(0)

(31)

102

(136)
(6,856)154(4,297)(6,856)(4,309)-11

(3) Consolidated Statements of Cash FlowsSix months
ended June 30,
2020
AmountCash flows from operating activities
Profit (loss) before income taxes
Depreciation and amortization
Impairment loss
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 valuation of investment securities
Loss on valuation of affiliated companies’ shares(Gain) loss on sales of fixed assets
Shop closing expenses(Gain) loss on valuation of derivatives(Gain) loss on investments in silent partnerships
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
Income taxes paid
Net cash provided by (used in) operating activities

9(millions of yen)Six months
ended June 30,
2021
Amount(8,587)
1,576
54
135
8
6

(5,033)
1,833
171
19
24

20

20

28

2

24
(102)
363

11
(58)
229

32

100

162
(64)
145
110
(0)
41
(0)
(73)
97

(40)
(0)
1
(94)
(263)

872

255

18

48

(2,037)(215)

709(1,171)567(334)(1,293)

1,008

974(7,946)93(365)(1,253)(9,471)4(1,739)
56
(226)
(7)
(1,915)

Six months
ended June 30,

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
Net increase (decrease) in short-term debt
Proceeds from long-term debt
Repayments of long-term debt
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 period

10(millions of yen)Six months
ended June 30,

2020

2021

AmountAmount(6,507)
0
(482)
215
-

(385)
0
(14)
191
(52)

36

-

(35)
(5)
137
(26)
(6,666)

(26)
642
(48)
305

852
8,300
(2,806)
(334)
(238)
5,773

279
(1,994)
(387)
(0)
(102)
(2,205)(17)

25(10,382)(3,790)28,25917,87622,202
18,412

(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
Financial Statements)(Simplified accounting methods)
1) Calculation method for depreciation of fixed assets
Depreciation expenses for assets to which the declining-balance method is applied are
calculated by allocating a quarterly proportion of the amount for the full fiscal year.
2) Calculation method for deferred tax assets and deferred tax liabilities
Regarding judgments on the amount of recoverable deferred tax assets, the Company
has determined that there have been no significant changes in the economic
environment or emergence of temporary differences since the end of the previous fiscal
year, and therefore the calculations are based on future earnings forecasts from theprevious year and tax planning methods.
(Special accounting treatments)
Calculation of taxes
The Company calculates tax liabilities by producing a reasonable estimate of the effective
tax rate after applying tax-effect accounting to income before income taxes for the fiscal
year, which encompasses the second quarter ended June 30, 2021, and then multiplying
profit (loss) before income taxes by this estimated effective tax rate. In cases where thisestimated effective tax rate cannot be used, the statutory effective tax rate is used.
(Additional Information)
With regard to the impact of the novel coronavirus, as noted in the (Additional Information)section of the Consolidated Earnings Report for the Three Months ended March 31, 2021,
the Group assumed that the number of customers and orders received in the wedding
business and the occupancy rate of the hotel business would gradually recover fromaround the second half of this year as progress was made with vaccinations. The
vaccination rate has now exceeded 40% and it is expected to continue rising in line withgovernment policies. Nevertheless, the pandemic continues to worsen, with thedeclaration of a fourth state of emergency, and no end in sight to the increase in thenumber of new cases. Consequently, the Group has changed its assumptions and now
assumes that this uncertainty will continue until the end of the current fiscal year, and has
accordingly made accounting estimates including judgments on the recoverability ofdeferred tax assets and the impairment of fixed assets.
However, given the many uncertainties surrounding the impact of the novel coronavirus,
the Group’s financial position and the operating results for the fiscal year ending
December 31, 2021 could be significantly affected, in the event that social and economic
activities stall due to further spread of infections.

11(Segment Information)
I. Six months ended June 30, 2020 (January 1 to June 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

7,160

3,492

1,139

11,793-

11,793

324

72

5

402

(402)

-

Total

7,485

3,565

1,144

12,196(402)

11,793

Segment income (loss)(3,464)(2,863)(538)(6,866)(873)(7,740)Notes: 1. Minus 873 million yen adjustments for the segment income or loss include 56 million yen
elimination of inter-segment sales and minus 930 million yen corporate expenses that are notallocated to each reportable segment. The main component of these unallocated corporate
expenses is SG&A expenses that are not attributable to reportable segments.
2. Segment income or loss adjustments are based on operating income reported on the quarterly
consolidated statements of income for the corresponding period.

2. Impairment loss on fixed assets or goodwill by reportable segment(Significant impairment loss on fixed assets)
As decreased profitability has remained in some fixed assets held in the “Wedding business”
segment, the Company has concluded that the recovery of the investment in these assets
could not likely be made during the course of the first six months of the fiscal year ending
December 31, 2020. Hence, the book value of these assets has been written down to therecoverable amount, and the resulting loss of 54 million yen has been reported as impairment
loss under the extraordinary loss.

12II. Six months ended June 30, 2021 (January 1 to June 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

7,942

3,869

1,314

13,126-

13,126

630

116

17

764

(764)

-

Total

8,573

3,985

1,331

13,890(764)

13,126

Segment income (loss)(1,793)(2,729)(283)(4,806)(711)(5,518)Notes: 1. Minus 711 million yen adjustments for the segment income or loss include 10 million yen
elimination of inter-segment sales and minus 722 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
Not applicable13

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

Segment

Six months ended
June 30, 2020

Six months ended
June 30, 2021

Year ended
December 31, 2020

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

2,141

2,817

5,044

Hotel business

283

510

717

Total

2,424

3,327

5,761

Wedding business2) Wedding orders received
Six months ended
June 30, 2020
Segment

Six months ended
June 30, 2021

Year ended
December 31, 2020

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

2,453

6,830

3,625

7,146

4,864

6,338

Hotel business

459

1,207

661

1,329

864

1,178

Total

2,912

8,037

4,286

8,475

5,728

7,516

Wedding business14