〔Delayed〕The original disclosure in Japanese was released on May 11, 2018 at 15:00 (GMT+9)

May 11, 2018

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Three Months ended March 31, 2018
(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):May 15, 2018
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, 2018
(January 1, 2018 – March 31, 2018)(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
12,173
5.7
(583)
(794)
March 31, 2018
Three months ended
11,513 (0.5)
(603)
(670)
March 31, 2017
Note: Comprehensive income: Three months ended March 31, 2018: (1,214) million yen (- %)Three months ended March 31, 2017(767) million yen (- %)Diluted profit
per shareyen

Profitper shareyen
Three months ended
March 31, 2018
Three months ended
March 31, 2017(7.66)-(11.03)-(2) Consolidated Financial Position

March 31, 2018

Total assets

Net assets

million yen

million yen
81,238Equity ratio%
34,381

84,44735,781
December 31, 2017
Reference: Total equity: March 31, 2018:
32,928 million yen
December 31, 2017:34,208 million yen
Total equity =Shareholders’ equity plus total accumulated other comprehensive income.

40.5
40.5

(365)

-

(526)

-

2. Dividends
End-Q1yen

End-Q2yen

Dividend per share
End-Q3yen

Year ended
5.00
December 31, 2017
Year ending
December 31, 2018Year ending
December 31, 2018
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, 2018
(January 1, 2018 – December 31, 2018)(Percentages indicate year-on-year changes)
Net sales
million yen%

Profit attributable toProfit%owners of the parent
million yen%

per shareyen

Operating income

Ordinary income

million yen

million yen%

Six months ending
June 30, 2018

28,000

7.0

800

6.2

800

15.6

400

151.0

8.39

Year ending
December 31, 2018

61,500

7.4

5,000

17.1

5,050

14.8

3,000

36.2

62.89

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

*Notes(1) Changes affecting the consolidation status of significant subsidiaries during the period: Yes
Newly Consolidated: None
Newly Deconsolidated: Best Bridal Korea Inc.
Note: For details, please refer to “(3) Notes on Quarterly Consolidated Financial Statements(Changes in Significant Subsidiaries)" in section "2. Quarterly Consolidated Financial
Statements and Main Notes" on page 8 in the accompanying materials.
(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” onpage 8 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.: 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, 2018

December 31, 2017

48,960,000

48,960,000

1,259,834

1,259,834

Three Months ended Three Months ended
March 31, 2018
March 31, 2017
3) Average number of shares outstanding
during the period

47,700,166

47,700,166* Quarterly Earnings Report is not subject to audit by certified public accountant and audit firm.
*Appropriate Use of Earnings Forecast and Other Important Information(Cautionary Statement with Respect to Forward-Looking Statements)
The above forecasts are based on information available as of this 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 to changes in the businessenvironment. 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,
2018” 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, 2018
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)(Changes in Significant Subsidiaries)(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
8
9
11
11

1. Review of Consolidated Financial Results(1) Operating Results
In the first three months of the fiscal year ending December 31, 2018, the Japanese economy
stayed on its recent moderate recovery track, supported by the positive impact of government
policies that have boosted personal spending, improved employment conditions, andencouraged corporations to use expanding profits to increase capital expenditures. However,the future outlook remains clouded by uncertainties in the global economy.
In this environment, the Tsukada Global Holdings Group endeavored to increase sales andprofitability by accurately responding to increasingly individualized and diversifying customer
needs in the bridal, hotel and relaxation (W&R) markets, while also continuing its efforts tocreate new value and develop high-quality, appealing outlets capable of providing highvalue-added services. During the quarter, the Group continued its efforts to expand earnings
and geographical operating areas. For example, we opened ArtGrace Next Ashiya in Hyogo
Prefecture in March and made steady progress on The Strings Hotel Shinjuku (provisionalname), scheduled to open in 2019 in Tokyo’s Shinjuku Ward.
As a result of these efforts, in the first quarter of 2018, Tsukada Global Holdings Inc. (“theCompany”) posted consolidated net sales of ¥12,173 million (up 5.7% year on year). The
Company recorded a first-quarter operating loss of ¥583 million (compared with a loss of ¥603
million a year earlier) and an ordinary loss of ¥794 million (compared with a loss of ¥670 million
a year earlier). The net loss attributable to owners of the parent amounted to ¥365 million(compared with a loss of ¥526 million a year earlier).
The results for each business segment were as follows.
1) Wedding businessIn the first three months of fiscal 2018, the wedding business achieved sales growth
supported by an increase in the number of weddings held at its core guesthouses in Japanand at overseas facilities. Segment profits, however, were down year on year owing tostartup costs at ArtGrace Next Ashiya.
As a result, net sales in the wedding business totaled ¥7,093 million (up 8.1% year onyear), but the segment posted an operating loss of ¥103 million (compared with a loss of¥62 million in the previous year).
2) Hotel business
The number of weddings held at our hotels decreased slightly in the first quarter of fiscal
2018, but segment sales increased on an overall strong trend in the hotels’ overnightoccupancy rates and average charge per night. The high occupancy rate also supported a
big increase in segment profits.
As a result, net sales in the hotel business came to ¥4,167 million (up 0.7% year onyear), and segment operating income totaled ¥65 million (up 104.0%).
3) W&R business (Wellness & Relaxation business)
This segment achieved strong sales growth in the first quarter, as it increased memberships
at its Best Style Fitness comprehensive fitness club that opened in September 2017 as well
as at the Beauty & Relax SPA-HERBS spa complex. However, the segment posted an
operating loss owing to the closure of three Queensway reflexology salons and seasonal

2

factors.
As a result, the W&R business posted net sales of ¥912 million (up 12.0% year on year)
and an operating loss of ¥128 million (compared with a loss of ¥114 million a year earlier).
(2) Analysis of Financial Condition
Assets, Liabilities, and Net Assets
Total assets as of March 31, 2018, the end of the first three months of fiscal 2018, amounted
to ¥81,238 million, a decrease of ¥3,208 million from the end of the previous fiscal year
(December 31, 2017). The decline mainly reflects changes in fixed assets, in particular a¥6,775 million decrease in the value of land holdings, which more than offset a ¥1,037 million
increase in other fixed assets (mainly construction in progress) related to the construction of
The Strings Hotel Shinjuku and a ¥2,686 million increase in cash and deposits owing toproceeds on the sale of commercial-use land at Jingumae in Tokyo.
Total liabilities as of March 31, 2018, came to ¥46,857 million, a decrease of ¥1,808
million from the end of the previous fiscal year. The decline reflects a ¥4,980 million
repayment of short-term debt, which outweighed the increase in long-term debt related tofinancing capital investments.
Net assets as of March 31, 2018, totaled ¥34,381 million, ¥1,399 million less than at theend of the previous fiscal year. The major changes are a ¥529 million decrease in foreign
currency translation adjustments caused by the stronger yen and a ¥518 million reduction toretained earnings owing to the payment of dividends and the posting of a quarterly net loss
attributable to owners of the parent.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2018
There is no change to the consolidated earnings forecasts for the six months ending June 30,
2018, and the full fiscal year ending December 31, 2018, which the Company announced in
its fiscal 2017 Consolidated Earnings Report dated February 14, 2018.

3

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

December 31, 2017
AmountAssetsCurrent assets
Cash and deposits
Accounts receivable - trade
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

4March 31, 2018
Amount14,985
1,108
118
557
1,672
(38)
18,404

17,671
1,071
126
523
2,039
(24)
21,407

24,74520,881
2,546
48,17324,323
14,106
3,583
42,013

2,004
231
2,236

1,938
219
2,157

2,675
8,663
4,392
(180)
15,55065,96082
84,447

2,971
8,333
4,375
(196)
15,48359,654
176
81,238(millions of yen)

December 31, 2017
AmountLiabilities
Current liabilities
Accounts payable - trade
Short-term debt
Current portion of long-term debt
Current portion of bonds
Current portion of convertible bonds with stockacquisition rights
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 on available-for-sale securities
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, 2018
Amount

2,461
8,100
3,633
744

2,333
3,120
3,913
590

500

500

1,234
1,625
4,009
22,307

462
2,183
3,544
16,647

3,415
18,848
353
738
2,369
632
26,35848,666

3,505
22,409
288
754
2,369
881
30,20946,857472
634
33,816(892)
34,030472
634
33,298(892)
33,511

(66)

(92)

-

(206)

250
(5)
178
1,572
35,781
84,447

(279)
(4)
(583)
1,453
34,381
81,238

(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
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
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
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,
2017
Amount11,513
8,570
2,943
3,546
(603)

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

7
8
74
61
56
33
242

8
2
71
59
12
153

55
202
50
309
(670)

52
29
251
30
364
(794)

0
0

492
492

9
0
9
(680)
(161)
(518)
7
(526)

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

Consolidated Statements of Comprehensive Income(millions of yen)

Profit (loss)
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 non-controllinginterests

7

Three months
ended March 31,
2017
Amount(518)

Three months
ended March 31,
2018
Amount
(358)

(9)

(26)

-

(206)

(239)
0
(248)
(767)

(623)
0
(855)
(1,214)(715)(1,127)

(51)

(87)

(3) Notes on Quarterly Consolidated Financial Statements(Note on the Going-concern Assumption)
Not applicable(Changes in Significant Subsidiaries)
Effective from the first quarter of the fiscal year ending December 31, 2018, Best Bridal
Korea Inc., which used to be a consolidated subsidiary of the Company, has now been
excluded from the scope of consolidation due to the lack of materiality.
(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 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 for the fiscal year,
which encompasses the first quarter ended March 31, 2018, and then multiplying profit (loss)
before income taxes by this estimated effective tax rate. In cases where this estimatedeffective tax rate cannot be used, the statutory effective tax rate is used.
(Additional Information)
Some of the Company’s consolidated subsidiaries used to have a lump-sum retirement
payment plan, as well as defined benefit and defined contribution corporate pension plans.
Effective on April 1, 2018, however, these plans have been abolished. In relation to thisabolishment, “Accounting Treatment concerning Transfer, etc. between Retirement Benefit
Plans” (ASBJ Implementation Guidance No. 1 on Accounting Standard) and “Practical
Solution on Accounting Treatment concerning Transfers, etc. between Retirement Benefit
Plans” (Practical Issue Task Force PITF No. 2) have been implemented. The financial effect of
the said implementation is immaterial on the first quarter of the fiscal year ending December
31, 2018.

8

(Segment Information)
II. Three months ended March 31, 2017 (January 1 to March 31, 2017)
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

6,561

4,136

815

11,513-

11,513

288

57

-

345

(345)

-

Total

6,850

4,193

815

11,859(345)

11,513

Segment income (loss)

(62)

32

(114)

(143)

(459)

(603)

Notes:

1. Minus 459 million yen adjustments for the segment income or loss include 8 million yen elimination ofinter-segment sales and minus 468 million yen corporate expenses that are not allocated to eachreportable 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. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable9II. 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 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. 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

Segment

Three months ended
March 31, 2017

Three months ended
March 31, 2018Year ended
December 31, 2017

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

2,077

2,422

11,800Hotel business

420

363

1,845

Total

2,497

2,785

13,645

Wedding business2) Wedding orders received

Segment

Three months ended
March 31, 2017

Three months ended
March 31, 2018Year ended
December 31, 2017

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

3,566

7,667

4,031

8,558

12,571

6,949

Hotel business

507

1,344

495

1,248

1,704

1,116

Total

4,073

9,011

4,526

9,806

14,275

8,065

Wedding business11