〔Delayed〕The original disclosure in Japanese was released on November 7, 2019 at 15:00 (GMT+9)

November 7, 2019

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Nine Months ended September 30, 2019
(Japanese GAAP)
Stock listing: Tokyo Stock Exchange (First Section)
URL: https://www.tsukada-global.holdings/en/
Representative: Masayuki Tsukada, President and CEO
Information contact: Masahiro Yamazaki, Manager, Finance &Accounting Department
Scheduled dates:
Filing of statutory quarterly financial report (shihanki hokokusho):
Dividend payout:
Supplementary materials to quarterly financial results available:
Quarterly earnings presentation held:

Securities code: 2418

Tel: +81-3-5464-0081
November 14, 2019
NoNo
(Amounts rounded down to the nearest million yen)

1. Consolidated Performance for the Nine Months ended September 30, 2019
(January 1, 2019 – September 30, 2019)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)
Profit attributable toNet sales
million yen%

Operating income
million yen%

Ordinary income
million yen%owners of the parent
million yen%

Nine months ended
September 30, 201943,7543.4

3,494

86.7

3,321

64.8

2,077

Nine months ended
September 30, 2018

42,330

6.3

1,872

39.0

2,015

39.4

1,218

Note: Comprehensive income:Nine months ended September 30, 2019: 1,620 million yen (102.1 %)Nine months ended September 30, 2018: 802 million yen (97.3 %)Diluted profit
per shareyenProfit
per shareyen
Nine months ended
September 30, 2019
Nine months ended
September 30, 201843.55

-25.5525.27(2) Consolidated Financial Position

September 30, 2019

Total assets

Net assets

Equity ratio

million yenmillion yen%

95,15436,722

38.6

90,84137,081
39.1
December 31, 2018
Reference: Total equity: September 30, 2019: 36,722 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 of70.4
105.
0Japan (ASBJ) Statement No. 28, February 16, 2018) have been applied, effective from the first three monthsof the fiscal year ending December 31, 2019. Figures in the financial position as of December 31, 2018 wereretroactively restated in accordance with said ASBJ amendments.

2. Dividends
End-Q1yen

End-Q2
yenDividend per share
End-Q3yen

Year ended
5.00
December 31, 2018Year ending
5.00
December 31, 2019Year ending
December 31, 2019
(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%

Operating income

Ordinary income

million yen

million yen

Year ending
63,0004.7
5,500
December 31, 2019
Note: No revision has been made to the latest earnings forecast.

%
4.8

5,560%

Profit attributable toProfit

owners of the parent
million yen%

per shareyen

5.8

3,100

27.9

*Notes(1) Changes in significant subsidiaries during the period: Yes(Changes in specific subsidiaries accompanying a change in scope of consolidation)
Newly Consolidated: BEST LIFE STYLE Inc.
Newly Deconsolidated: BT KALAKAUA, LLC
Note: For details, please refer to “(3) Notes on Quarterly Consolidated Financial Statements(Changes in Significant Subsidiaries for the Nine Months ended September 30, 2019)”
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
Consolidated Financial Statements)” in section “2. Quarterly Consolidated FinancialStatements and Main Notes” on page 8 in the accompanying material.
(3) Changes in accounting policy, changes in accounting estimates, and retrospectiverestatement
1) Changes in accordance with amendments to accounting standards, etc.: None

64.99

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

3) Average number of shares outstanding
during the period

September 30, 2019

December 31, 2018

48,960,000

48,960,000

1,259,834

1,259,834

Nine Months ended
September 30, 2019

Nine Months ended
September 30, 2018

47,700,166

47,700,166* Quarterly earnings reports are exempt from quarterly review 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)
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,
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)(Changes in Significant Subsidiaries for the Nine Months ended September 30, 2019)(Application of Specific Accounting Methods for the Preparation of Quarterly
Consolidated Financial Statements)(Additional Information)(Segment Information)
3. Supplementary Information(Weddings Held and Orders Received)

122334466788888891111

1. Review of Consolidated Financial Results(1) Operating Results
In the first nine months of the fiscal year ending December 31, 2019, despite uncertainties
pertaining to the global economy and trade issues, the Japanese economy generally stayedon its recent moderate recovery track supported by improved employment conditions,expanded corporate earnings, and a recovery in personal spending. However, the future
outlook remains clouded by the impact of the consumption tax rate increase on consumer
sentiment and other factors.
In this environment, the Tsukada Global Holdings Group (the “Group”) endeavored toincrease sales and profitability by accurately responding to increasingly individualized anddiversifying customer needs in the bridal, hotel, and wellness and relaxation (W&R) markets,
while also continuing its efforts to create new value and develop high-quality, appealing outlets
capable of providing high value-added services.
In the Hotel business, as the Group looks ahead toward the Tokyo Olympic andParalympic Games next year, it continued efforts to create new value and further improve thequality of its hospitality in the third quarter. For example, we began preparations to open
Kimpton Hotel Shinjuku, Tokyo (provisional name), major renovations of The Strings byInterContinental Tokyo in Shinagawa, Tokyo, and refurbishment and rebranding of The Strings
Hotel Yagoto Nagoya in Showa Ward, Nagoya, Aichi Prefecture.
In the Wedding business, the Group strove to expand earnings and business areas byincreasing internal production of mainstay wedding-related products such as floral decorationand photo, video and audio content, as well as promoting external sales of these products.
As a result of these efforts, in the first nine months of fiscal 2019, Tsukada Global Holdings
Inc. (“the Company”) posted consolidated net sales of ¥43,754 million (up 3.4% year on year).
The Company recorded robust profit growth, with an operating income of ¥3,494 million (up86.7% year on year), an ordinary income of ¥3,321 million (up 64.8% year on year) and profit
attributable to owners of the parent of ¥2,077 million (up 70.4% year on year).
The results for each business segment were as follows.
1) Wedding businessIn the first nine months of fiscal 2019, sales grew in the Wedding business bolsteredprimarily by an increase in the number of weddings held in the mainstay Japanese market
as well as a solid increase in spend per wedding. Segment income increased mainly due toincreased internal production of wedding-related products and content such as
photographs, videos, and floral decorations.
As a result, net sales in the wedding business totaled ¥28,137 million (up 6.6% year onyear) and segment income totaled ¥4,801 million (up 56.4% year on year).
2) Hotel business
Segment sales declined in the first nine months of fiscal 2019 despite solid growth ofovernight occupancy rates and average charge per night, because the number of weddings
held at our hotels decreased, and the number of guest rooms available for sale decreased
due to major renovation work. Segment income also declined due to lower segment sales
and expenses related to the preparations for opening Kimpton Hotel Shinjuku, Tokyo2(provisional name).
As a result, net sales in the hotel business came to ¥12,598 million (down 3.2% year onyear), and segment income totaled ¥77 million (down 75.8%).
3) W&R business (Wellness & Relaxation business)
In the first nine months of fiscal 2019, this segment recorded higher sales due to full-year
operation of comprehensive fitness club Best Style Fitness Kaihin Makuhari, which opened
in December 2018. However, the segment posted an operating loss owing to slower-thanexpected progress with membership growth at some comprehensive fitness clubs.
As a result, the W&R business posted net sales of ¥3,018 million (up 3.9% year onyear) and an operating loss of ¥127 million (compared with a loss of ¥276 million a yearearlier).
(2) Analysis of Financial Condition
Assets, Liabilities, and Net Assets
Total assets as of September 30, 2019, the end of the first nine months of fiscal 2019,
amounted to ¥95,154 million, an increase of ¥4,312 million from the end of the previous fiscalyear (December 31, 2018). The increase mainly reflects a ¥7,863 million increase inconstruction in progress related to the construction of Kimpton Hotel Shinjuku, Tokyo(provisional name) and a ¥3,288 million increase in investment securities as a result ofinvestment of surplus funds. These were partially offset by a ¥3,472 million decline inbuildings and structures and a ¥5,266 million decrease in land, as a result of exclusion fromconsolidation of former consolidated subsidiary BT KALAKAUA, LLC due to a reduced equity
stake following partial divestment.
Total liabilities as of September 30, 2019, came to ¥58,431 million, an increase of ¥4,672
million from the end of the previous fiscal year. The increase mainly reflects increases incurrent liabilities – other of ¥4,923 million related to an increase in accounts payable forconstruction work on Kimpton Hotel Shinjuku, Tokyo (provisional name) and ¥971 million in
wedding-related advances received which offset a ¥1,080 million reduction in long-term debt(including the current portion of long-term debt) and a ¥1,099 million decrease in income
taxes payable following tax payments.
Net assets as of September 30, 2019, totaled ¥36,722 million, ¥359 million lower than at
the end of the previous fiscal year. The major changes are a ¥1,600 million increase inretained earnings reflecting the posting of a quarterly profit attributable to owners of theparent and a ¥1,533 million decrease in non-controlling interests due to the exclusion of a
subsidiary from the scope of consolidation.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2019
There is no change to the consolidated earnings forecasts for the fiscal year endingDecember 31, 2019 that the Company announced in its second quarter Consolidated
Earnings Report dated August 8, 2019.

3

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

AssetsCurrent assets
Cash and deposits
Accounts receivable - tradeMarketable securities
Merchandise
Raw materials and supplies
Other
Allowance for doubtful receivables
Total current assets
Fixed assets
Tangible assets
Buildings and structures, net
LandConstruction in progress
Other, net
Total tangible assets
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Other
Allowance for doubtful receivables
Total investments and other assets
Total fixed assets
Deferred assets
Total assets

4

December 31, 2018

(millions of yen)
September 30, 2019

AmountAmount24,206
1,281
289
127
490
1,136
(24)
27,50625,377
1,133
2,498
115
505
1,376
(23)
30,98325,361
15,553
1,972
1,723
44,61021,888
10,287
9,835
1,501
43,512

1,738
184
1,922

1,542
190
1,732

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

5,845
8,032
5,108(211)
18,77564,020150
95,154

Liabilities
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 plan
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

5

December 31, 2018
Amount(millions of yen)
September 30, 2019
Amount

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

2,434
510
4,494
609
213
2,855
9,305
20,422

3,125
32,614
302
784
2,391
762
39,98153,7593,800
30,212
313
820
2,408
453
38,00858,431472
634
35,849(892)
36,063472
634
37,449(892)
37,663

(142)

(146)

(249)

(544)

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

(243)
(5)
(940)
36,722
95,154

(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
Non-operating income
Interest income
Dividend income
Gain on investments in silent partnership
Real estate rental income
Foreign exchange gains
OtherTotal non-operating income
Non-operating expenses
Interest expenses
Real estate rental expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
Gain on sales of shares of subsidiaries
Other
Total extraordinary income
Extraordinary loss
Loss on disposal of fixed assets
Shop closing expenses
Impairment loss
Other
Total extraordinary loss
Profit before income taxes
Income taxes
ProfitProfit (loss) attributable to non-controlling interests
Profit attributable to owners of the parent

6Nine months
ended September30, 2018
Amount42,33029,646
12,683
10,811
1,872(millions of yen)
Nine months
ended September
30, 2019
Amount
43,75429,22014,534
11,039
3,494

22
8
150
168
765
423

58
0
153
183
120
515

165
75
38
280
2,015

336
156
196
689
3,321

492
1493

23
207
230

40
65
180
8
294
2,214
975
1,239
20
1,218

671
19
16
113
3,438
1,391
2,046
(30)
2,077

Consolidated Statements of Comprehensive Income

ProfitOther comprehensive income
Net unrealized gain (loss) on available-for-salesecurities
Deferred gain (loss) on derivatives under hedgeaccounting
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 theparent
Comprehensive income (loss) attributable to noncontrolling interests

7

Nine months
ended September
30, 2018
Amount1,239(millions of yen)
Nine months
ended September
30, 2019
Amount
2,046

(51)

(4)

(109)

(295)

(276)
0(95)
(1)

-(29)

(436)
802

(425)
1,620

7751,65126(30)(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(Changes in Significant Subsidiaries for the Nine Months ended September 30, 2019)BEST LIFE STYLE Inc. has been added to the scope of consolidation, due to its
establishment during the second quarter ended June 30, 2019 of the current fiscal year.
Additionally, due to the Company having sold a portion of its shareholding, BT KALAKAUA,
LLC has been excluded from the scope of consolidation and has consequently been madean equity method affiliate from the end of the second quarter ended June 30, 2019 of thecurrent fiscal year.
(Application of Specific Accounting Methods for the Preparation of Quarterly
Consolidated 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 arecalculated by allocating a quarterly proportion of the amount for the full fiscal year.
2) Calculation method for deferred tax assets and deferred tax liabilities
Regarding judgments on the amount of recoverable deferred tax assets, the Company
has determined that there have been no significant changes in the economic
environment or emergence of temporary differences since the end of the previous fiscal
year, and therefore the calculations are based on future earnings forecasts from theprevious year and tax planning methods.
(Special accounting treatments)
Calculation of taxes
The Company calculates tax liabilities by producing a reasonable estimate of the effective
tax rate after applying tax-effect accounting to profit before income taxes for the fiscal year,
which encompasses the third quarter ended September 30, 2019, 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)(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 the heading of investments and other assets, while deferred tax liabilities are shown
under the heading of fixed liabilities.

8

(Segment Information)[Segment Information]
I. Nine months ended September 30, 2018 (January 1 to September 30, 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

26,40513,0192,905

42,330-42,330

973

241

0

1,215(1,215)-Total

27,37813,2602,906

43,545(1,215)42,330

Segment income (loss)

3,069

319(276)

3,112(1,239)

1,872

Notes: 1. Minus 1,239 million yen adjustments for the segment income or loss include 79 million yen
elimination of inter-segment sales and minus 1,318 million yen corporate expenses that are notallocated to each reportable segment. The main component of these unallocated corporate
expenses is general and administrative 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 nine months of the fiscal year ended December
31, 2018. Hence, the book value of these assets has been written down to the recoverable
amount, and the resulting loss of 180 million yen has been reported as impairment loss under theextraordinary loss.

9II. Nine months ended September 30, 2019 (January 1 to September 30, 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

28,137

12,5983,018

43,754-43,754

1,112

242

11

1,366(1,366)-Total29,25012,841

3,029

45,121(1,366)

43,754

Segment income (loss)

4,801

77(127)

4,751(1,256)

3,494

Notes: 1. Minus 1,256 million yen adjustments for the segment income or loss include 97 million yen
elimination of inter-segment sales and minus 1,353 million yen corporate expenses that are notallocated to each reportable segment. The main component of these unallocated corporate
expenses is general and administrative 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 “W&R business”
segment, the Company has concluded that the recovery of the investment in these assets could
not likely be made during the course of the first nine months of the fiscal year ending December
31, 2019. Hence, the book value of these assets has been written down to the recoverable
amount, and the resulting loss of 19 million yen has been reported as impairment loss under theextraordinary loss.

10

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

Nine months ended
September 30, 2018

Nine months ended
September 30, 2019Year ended
December 31, 2018

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

Wedding business

9,086

8,92312,806

Hotel business

1,194

1,139

1,712

Total

10,28010,062

14,5182) Wedding orders received

Segment

Nine months ended
September 30, 2018

Nine months ended
September 30, 2019Year ended
December 31, 2018

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

Wedding business

10,287

8,150

9,373

7,569

12,976

7,119

Hotel business

1,427

1,349

1,210

1,250

1,775

1,179

Total

11,714

9,499

10,5838,819

14,751

8,298

11