〔Delayed〕The original disclosure in Japanese was released on February 14, 2024 at 15:00 (GMT+9)

February 14, 2024

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Fiscal Year ended December 31, 2023
(Japanese GAAP)
Stock listing: Tokyo Stock Exchange (Standard Market)
Securities code: 2418
URL https://www.tsukada-global.holdings
Representative: Masayuki Tsukada, President and CEO
Information contact: Masahiro Yamazaki, Manager, Finance &Tel: +81-3-5464-0081
Accounting Department
Scheduled dates:
Annual general meeting of shareholders:March 28, 2024
Dividend payout:
March 29, 2024
Filing of statutory year-end financial report:
March 28, 2024
Supplementary materials to year-end financial results available: Yes
Year-end earnings presentation held: Yes: (targeted at institutional investors and analysts)(Amounts rounded down to the nearest million yen)

1. Consolidated Performance for the Fiscal Year ended December 31, 2023
(January 1, 2023 – December 31, 2023)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)
Net sales
million yen

Operating income%

million yen

Ordinary income%

million yen%

Profit attributable toowners of the parent
million yen%

Year ended
57,47411.2
5,341 79.5
5,742
20.7
4,730
215.6
December 31, 2023
Year ended
51,699
54.6
2,976
－
4,758
－
1,498
－
December 31, 2022
(Note) Comprehensive income: Year ended December 31, 2023
4,819 million yen (76.1%)
Year ended December 31, 2022
2,736 million yen (－%)
ProfitDiluted profit
Ordinary income Operating income
Return on equity
per shareper share
to total assets
to net sales
Yen

Year ended
99.16
December 31, 2023
Year ended
31.42
December 31, 2022
(Reference) Equity in earnings (losses) of affiliates(2) Consolidated Financial Position
December 31, 2023
December 31, 2022
(Reference) Total equity:

%

%

%

－

18.9

6.4

9.3

－

6.9

5.3

5.8

Year ended December 31, 2023:
Year ended December 31, 2022:(173) million yen(93) million yen

Total assets

Net assets

Equity ratio

Net assets per share

million yen

million yen%

yen

93,15487,472
December 31, 2023:
December 31, 2022:(3) Consolidated Cash Flows

Year ended
December 31, 2023
Year ended
December 31, 2022

Yen

27,42823,08627,196 million yen
22,866 million yen

29.2
26.1

570.16479.39Cash flows fromoperating activities

Cash flows frominvesting activities

million yen

million yen

8,075(11,764)

1,169

18,916

7,958

2,077

(5,420)21,149million yen

million yen

Cash flows from Cash and cash equivalents
financing activities
at end of period

2. Dividends

Year ended
December 31, 2022
Year ended
December 31, 2023
Year ending
December 31, 2024
(Forecast)

Dividend per share
YearendAnnualtotal

Total
dividends

End-Q1End-Q2End-Q3

Yen

Yen

Yen

Yen

Yen

million yen

－

0.00

－

5.00

5.00

－

5.00

－

5.00

10.00

－

5.00

－

5.00

10.00

Rate of total
Dividend
dividend to net
payout ratio
assets(consolidated)(consolidated)
%

%

238

15.9

1.1

477

10.1

1.9

11.6

3. Earnings Forecast for the Fiscal Year ending December 31, 2024
(January 1, 2024 – December 31, 2024)
Net sales
Six months ending
June 30, 2024
Year ending
December 31, 2024

million yen

Operating income(Percentages indicate year-on-year changes)
Profit attributable to Profit per
Ordinary income
owners of the parent
share% million yen% million yen%

million yen%

Yen27,974

4.2

1,484

4.7

1,367

(36.8)

929(54.4)

19.49

60,775

5.7

6,003

12.4

5,730

(0.2)

4,095

(13.4)

85.86*Notes(1) Changes in significant subsidiaries during the period: Yes(Changes in specific subsidiaries accompanying a change in scope of consolidation)
Newly Consolidated: 1 company(Company name) A silent partnership operated by a limited liability company, Shinurayasu SPC
Note: For details, please refer to “(5) Notes on Consolidated Financial Statements (Changes
in Significant Subsidiaries During the Period)” in section “3. Consolidated Financial
Statements and Main Notes” on page 16 in the accompanying materials.
(2) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
1) Changes in accordance with amendments to accounting standards, etc.: Yes
2) Changes other than noted in 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(3) 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 period
3) Average number of shares outstanding during the period
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

December 31, 2023

Year ended
December 31, 2022

48,960,000

48,960,000

1,259,834

1,259,834

Year ended
December 31, 2023

Year ended
December 31, 2022

47,700,166

47,700,166* This Earnings Report is exempt from auditing 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 asof 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 business environment. For the assumptions underlying the forecasts herein
and other notice on the use of earnings forecasts, please refer to “(4) Earnings Forecast for the
Fiscal Year ending December 31, 2024” in the section “1. Review of Consolidated Financial
Results” on page 7 in the accompanying materials.
(Presentation Handout Materials)
The Company has scheduled an earnings presentation targeted at institutional investors andanalysts on February 19, 2024.
The presentation handout materials will be posted on the Company's website immediately after
the event.

Accompanying Material – Contents
1. Review of Consolidated Financial Results(1) Operating Results(2) Analysis of Financial Condition(3) Overview of Cash Flows(4) Earnings Forecast for the Fiscal Year ending December 31, 2024
2. Basic Views on Adoption of Accounting Standards
3. 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 Changes in Net Assets(4) Consolidated Statements of Cash Flows(5) Notes on Consolidated Financial Statements(Note on the Going-concern Assumption)(Changes in Significant Subsidiaries During the Period)(Changes in Accounting Policies)(Changes in Presentation)(Segment Information)(Per Share Information)(Significant Subsequent Events)
4. Other Information(1) Changes in Officers(2) Weddings Held and Orders Received

4

5
5
6
6
7
7
8
8
10
10
11
12
14
16
16
16
16
16
17
21
21
22
22
22

1. Review of Consolidated Financial Results(1) Operating Results
In the fiscal year ended December 31, 2023, the Japanese economy as a whole was on a moderate
recovery path helped by the effects of various government policies, including a pickup in consumer
spending as well as an improvement in corporate profits and the employment and income environment.
However, the outlook remains uncertain with sharp fluctuations in foreign exchange rates resulting fromglobal monetary tightening and soaring raw material prices and energy costs.
Amidst this environment, the Tsukada Global Holdings Group (“the Group”) focused on creating newvalue, developing high-quality and attractive outlets, providing high-value-added services in the bridal,
hotel, and wellness and relaxation (W&R) markets, and on accurately responding to diversifying
customer needs, and thereby strived to expand net sales and to improve profitability.
In the Hotel business, the number of domestic travelers rose as a result of the reclassification of
COVID-19 to Class 5 infectious diseases. And thanks to the lifting of travel restrictions, the number offoreign visitors to Japan exceeded 25 million (Japan National Tourism Organization, “Number of Foreign
Visitors to Japan (2023 estimate)”), a recovery to 78.6% of the figure for 2019. These factors led to an
upturn in the overnight occupancy rate and average charge per night, which remained stable. In addition,
the number of weddings held in the Wedding business and the Hotel business is returning to normal, as
postponements due to COVID-19, which had been frequent until last year, have largely disappeared.
However, the outlook continues to be difficult to predict, as the recovery in the spend per wedding stalled
due to the increase in the number of small weddings. In the W&R business, we have worked tostrengthen our future profit base by closing unprofitable outlets which are slow to recover from the
COVID-19 pandemic and improving business efficiency.
As a result, in the fiscal year ended December 31, 2023, the Group posted consolidated net sales of¥57,474 million (up 11.2% year on year) and operating income of ¥5,341 million (up 79.5% year on year).
In non-operating income, we recorded foreign exchange loss of ¥484 million in the fourth quarter due tofluctuations in foreign exchange rates, resulting in foreign exchange gains of ¥596 million for fiscal 2023,
which is a decline from ¥1,081 million recorded for the first nine months of fiscal 2023. Consequently,
ordinary income came to ¥5,742 million (up 20.7% year on year). Profit attributable to owners of theparent jumped to ¥4,730 million (up 215.6%) partly due to the posting of ¥700 million in compensation
income under extraordinary income.
The results for each business segment were as follows.
1) Wedding businessIn fiscal 2023, the number of weddings held fell slightly to 10,462 (down 3.5% year on year), butspend per wedding gradually recovered and thus net sales in the Wedding business also increased
modestly year on year. However, segment profit decreased significantly year on year due to a decline
in profitability caused by the increase in the number of small weddings despite an uptrend in spend
per wedding and an increase in energy and other costs.
As a result, net sales in the Wedding business totaled ¥34,240 million (up 0.2% year on year) andsegment profit was ¥4,929 million (down 19.9% year on year).
2) Hotel business
The number of hotel weddings held climbed slightly to 1,708 (up 2.9% year on year) in fiscal 2023.
The overnight occupancy rate and average charge per night remained firm due to an increase in thenumber of domestic travelers and the number of foreign visitors to Japan. Inbound tourism relateddemand, which had declined sharply, is steadily recovering.
As a result, net sales in the Hotel business totaled ¥20,301 million (up 39.5% year on year) andsegment profit was ¥2,386 million (compared with a loss of ¥1,441 million a year earlier).
3) W&R businessIn fiscal 2023, the Beauty & Relax SPA-HERBS spa complex was ranked first nationwide for the fourthconsecutive year in the “Nifty Onsen Annual Ranking,” which drove the number of visitors, net sales,and segment profit to exceed the levels of the previous fiscal year. However, segment net sales
declined slightly mainly due to the difficulty in increasing the number of therapists and the closing of
unprofitable outlets for the British-style Queensway reflexology salons, resulting in a segment loss,
although profitability is on an uptrend.
As a result, net sales in the W&R business totaled ¥2,933 million (down 1.0% year on year) andsegment loss was ¥113 million (compared with a loss of ¥334 million a year earlier).
5(2) Analysis of Financial Condition(Assets)
Total assets at the end of fiscal 2023 (December 31, 2023) amounted to ¥93,154 million, an increase of¥5,682 million from the end of the previous fiscal year (December 31, 2022). This was mainly due to anincrease of ¥5,349 million in tangible assets following the acquisition of land.
(Liabilities)
Total liabilities at the end of fiscal 2023 came to ¥65,726 million, an increase of ¥1,340 million from theend of the previous fiscal year. The increase is chiefly attributable to a decrease of ¥964 million in bonds
payable (including current portion) following redemption offset by an increase of ¥2,680 million in longterm debt (including current portion) due to procurement.
(Net assets)
Total net assets at the end of fiscal 2023 totaled ¥27,428 million, an increase of ¥4,342 million from theend of the previous fiscal year. This was mainly due to an increase of ¥4,253 million in retained earnings
due to the recording of profit attributable to owners of the parent. As a result, the equity ratio was 29.2%,
an improvement of 3.1 percentage points from the end of the previous fiscal year (December 31, 2022).
(3) Overview of Cash Flows
Cash and cash equivalents (“cash”) at the end of fiscal 2023 totaled ¥18,916 million, a decrease of¥2,232 million from the end of the previous fiscal year.
Cash flows and factors behind changes in the cash flows in fiscal 2023 are as follows.
(Cash flows from operating activities)
Cash provided by operating activities totaled ¥8,075 million (up 1.5% year on year). The change ismainly due to profit before income taxes of ¥5,993 million and depreciation and amortization of ¥3,666
million.
(Cash flows from investing activities)
Cash used in investing activities totaled ¥11,764 million (compared with cash provided by investing
activities of ¥2,077 million a year earlier). This was mainly due to ¥8,976 million in purchase of tangible
assets associated with capital investment and ¥2,400 million in loan advances.
(Cash flows from financing activities)
Cash provided by financing activities totaled ¥1,169 million (compared with cash used in financing
activities of ¥5,420 million a year earlier). This chiefly reflects inflows of ¥10,220 million from proceedsfrom long-term debt, which offset outflows of ¥7,539 million for repayments of long-term debt and ¥964
million in payments for redemption of bonds.
Changes in the Group’s cash flow-related indicators are as follows.
Equity ratio (%)

FY2019FY2020

FY2021

FY2022

FY2023

37.7

26.3

22.5

26.1

29.2

Equity ratio based on
29.3
12.3
16.3
19.8
market value (%)
Cash flow to interest6.1－－
6.0
bearing debt (years)
Interest coverage ratio
－
－
17.3
16.2
(times)
Notes:
Equity ratio: Total equity/Total assets
Equity ratio based on market value: Market valuation/Total assets
Cash flow to interest-bearing debt: Interest-bearing debt/Operating cash flow
Interest coverage ratio: Operating cash flow/Interest expenses

19.9
6.1
16.0

1. All indicators are calculated based on consolidated figures.
2. Cash flows from operating activities in the Consolidated Statements of Cash Flows are used for
operating cash flow. Interest-bearing debt includes all liabilities recorded on the Consolidated Balance
Sheets on which interest is paid. Interest paid in the Consolidated Statements of Cash Flows is used
for interest expenses.

6(4) Earnings Forecast for the Fiscal Year ending December 31, 2024
Regarding the consolidated results forecast for the fiscal year ending December 31, 2024, the number offoreign visitors to Japan and private consumption are expected to remain strong as a result of thereclassification of COVID-19 to Class 5 infectious diseases. Based on these assumptions, we expect a
gradual pickup in the spend per wedding, which has been slow in recovery, and a steady increase inovernight occupancy rate and average charge per night. However, given the uncertainty around therecovery in inbound tourism demand from China, which is facing economic stagnation, and rapid
fluctuations in the exchange rate, it is still difficult to forecast the Group's performance figures.
At all of our facilities, the Group will continue to take appropriate steps to prevent the spread of
infection so that our customers can use our facilities with peace of mind. At the same time, in the
Wedding business, we will promote the expansion of the contract wedding business with wedding
reception halls operated by other companies in the industry, while in the Studio Photo Park Business, wewill promote photo weddings by opening new outlets and work to further increase the number of
weddings handled. In the Hotel business, in cooperation with international brands, we will hold various
events and campaigns tailored to the region and season to further promote the use of accommodations.
Taking the above into account, for the fiscal year ending December 31, 2024, the Group forecasts
consolidated net sales of ¥60,775 million (up 5.7% year on year), operating income of ¥6,003 million (up12.4% year on year), ordinary income of ¥5,730 million (down 0.2% year on year), and profit attributableto owners of the parent of ¥4,095 million (down 13.4% year on year).
2. Basic Views on Adoption of Accounting Standards
The Group’s financial statements are prepared in accordance with the accounting principles generally
accepted in Japan (Japanese GAAP), in order to ensure comparability with other companies in the peergroup. As to the possible future adoption of the International Financial Reporting Standards (IFRS), theGroup shall continue its study going forward, taking into account the future developments of the Group’sbusiness and of the global and Japanese business environments.

73. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheets
December 31, 2022
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
Accumulated depreciation
Buildings and structures, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total tangible assets
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Deferred tax assets
Other
Allowance for doubtful receivables
Total investments and other assets
Total fixed assets
Deferred assets
Bond issuance costs
Other
Total deferred assets
Total assets

8(millions of yen)

December 31, 2023
Amount21,238
1,479
166
381
1,360
(37)
24,58819,005
1,705
161
390
4,029
(40)
25,24959,244(30,161)
29,083
9,544
1,007
10,617(9,121)
1,496
41,13160,304(32,509)
27,795
16,774743
11,166(9,998)1,168
46,481

1,157
1,020
2,177

745
877
1,622

5,599
7,211
5,695
1,007
(121)
19,39262,702

6,029
7,051
5,544
1,147
(128)
19,64467,747

181
181
87,472153
3
157
93,154

(millions of yen)

December 31, 2022
AmountLiabilities
Current liabilities
Accounts payable - trade
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
Deferred gain (loss) on derivatives underhedge accounting
Foreign currency translation adjustments
Remeasurements of defined benefit plan
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

9

December 31, 2023
Amount

2,101
7,106
964
839
3,107
62
47
4,300
18,530

1,947
7,118
994
615
3,080
260
4,296
18,312

5,703
33,722
407
953
4,535
532
45,85564,386

4,709
36,391
409
1,005
4,549
348
47,41365,726472
634
22,140(892)
22,353472
634
26,393(892)
26,606

171

99

347
(5)

488
2

513

589

219
23,08687,472

231
27,42893,154

(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
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
Share of loss of entities accounted for using equity
methodLoss on investments in capital
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Compensation income
Gain on sales of fixed assets
Gain on sales of memberships
Gain on reversal of asset retirement obligations
Total extraordinary income
Extraordinary loss
Loss on disposal of fixed assets
Loss on sales of fixed assets
Loss on sales of investment securities
Impairment loss
Shop closing expenses
Provision of allowance for loss on shop closing
Other
Total extraordinary loss
Profit (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controllinginterests
Profit attributable to owners of the parent

10

Year ended
Year ended
December 31, 2022 December 31, 2023
AmountAmount
51,69957,47434,22035,81817,47821,655
14,502
16,314
2,976
5,341
37
152
1,381
1,044
234
2,850

183
151
20
596
207
1,159

486

511

93

173

177
311
1,068
4,758

74
758
5,742

0
3
3

700
0
146
846

36
382
100
238
94
62
17
932
3,829
952
1,377
2,330
1,499

75
4
175
65
260
14
595
5,993
1,071
195
1,266
4,727

0

(2)

1,498

4,730

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 underhedge accounting
Foreign currency translation adjustments
Remeasurements of defined benefit plan
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to ownersof the parent
Comprehensive income attributable to noncontrolling interests

11

Year ended
December 31, 2022

Year ended
December 31, 2023

AmountAmount
1,499

4,727

38

-

756

(72)

208
0

39
8

233

115

1,237
2,736

91
4,819

2,706

4,806

29

12

(3) Consolidated Statements of Changes in Net Assets
Year ended December 31, 2022 (January 1 to December 31, 2022)(millions of yen)
Shareholders’ equity

Balance at beginning ofterm

Capital stock

Capital surplus

472

634

Cumulative effects ofchanges in accounting
policies

Retainedearnings
20,933

Treasury stock

Total
shareholders’equity(892)

21,146(291)

Restated balance

472

634

20,641

(291)
(892)

20,855

Changes during term
Profit attributable toowners of the parent

1,498

Change in ownership
Interest of parent due totransactions with noncontrolling interests

1,498

(0)

(0)

Net changes in items otherthan shareholders’ equity
Total changes during term
Balance at end of term

-

(0)

1,498

-

1,498

472

634

22,140(892)

22,353

Accumulated other comprehensive income
Deferred gain
Total
Net unrealized
Foreign(loss) on
Remeasurements accumulated
gain (loss) on
currency
derivatives
otherof defined
available-fortranslation
under hedge
comprehensive
benefit plansale securities
adjustments
accounting
incomeBalance at beginning of
term

(38)

(584)

(64)

(6)

(694)

Noncontrollinginterests

189

Cumulative effects ofchanges in accounting
policies
Restated balance

Total net
assets

20,641
(291)

(38)

(584)

(64)

(6)

(694)

189

20,349Changes during term
Profit attributable toowners of the parent

1,498

Change in ownershipinterest of parent due totransactions with noncontrolling interests(0)

Net changes in items
other than shareholders’equity

38

756

412

0

1,207

29

1,237

Total changes during term

38

756

412

0

1,207

29

2,736

-

171

347

(5)

513

219

23,086

Balance at end of term

12Year ended December 31, 2023 (January 1 to December 31, 2023)(millions of yen)
Shareholders’ equity
Capital stock

Capital surplus

472

634

Balance at beginning of term

Retainedearnings

Treasury stock

Total
shareholders’equity(892)

22,35322,140Changes during term
Dividend of surplus

(477)

(477)

Profit attributable to ownersof the parent

4,730

4,730

Net changes in items otherthan shareholders’ equity
Total changes during term
Balance at end of term

-

-

4,253

-

4,253

472

634

26,393(892)

26,606

Accumulated other comprehensive income
Deferred gain
(loss) on
derivatives
under hedge
accounting
Balance at beginning of term

171

Foreigncurrencytranslation
adjustments

Total
Remeasurements accumulated
otherof defined benefit
comprehensiveplanincome

347

(5)

513

Noncontrollinginterests
219

Total net assets

23,086

Changes during term
Dividend of surplus(477)

Profit attributable to ownersof the parent

4,730

Net changes in items otherthan shareholders’ equity

(72)

140

8

Total changes during term

(72)

140

8

76

12

4,342

Balance at end of term

99

488

2

589

231

27,428

13

76

12

89

(4) Consolidated Statements of Cash Flows(millions of yen)

Year ended
Year ended
December 31, 2022 December 31, 2023
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 allowance for loss on shop
closing
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 sales of fixed assets
Shop closing expenses(Gain) loss on investments in silent partnerships
Compensation income
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 accrued consumption taxes(Increase) decrease in other assets
Increase (decrease) in other liabilities
Other
Sub totalInterest and dividends received
Interest paid
Proceeds from compensation
Income taxes paid
Net cash provided by (used in) operating activities

14

Amount
3,829
3,638
238
343
51
36

5,993
3,666
175
298
29
75

40

197

39

51

5

(12)

11
(37)
486

7
(183)
511

93

173

66
100
381
94
(152)
(1,010)

4
65
(151)
(700)
(550)

(478)

(224)

16

(2)

362

(161)

27
314
(256)
230
301
8,775
103
(490)
(430)
7,958

(36)
(443)
75
128
1
8,989
185
(505)
700
(1,295)8,075

(millions of yen)

Year ended
Year ended
December 31, 2022 December 31, 2023
AmountAmountCash flows from investing activities
Purchase of tangible assets(1,506)(8,976)

Proceeds from sales of tangible assets

2,774

1

Purchase of intangible assets

(425)

(6)

-

(253)

1,117

-

208

189

-

(2,400)

Collection of loans receivable-

0

Lease and guarantee deposits

(407)

(552)

Collection of lease and guarantee deposits

567

569

Other

(251)

(335)

Net cash provided by (used in) investing activities

2,077(11,764)

Net increase (decrease) in short-term debt

(500)

-

Proceeds from long-term debt

8,000

10,220

Repayments of long-term debt

(11,993)(7,539)Proceeds from issuance of bonds

1,488

-

Payments for redemption of bonds(2,379)(964)

Dividends paid to shareholders

(0)

(476)

Other

(36)

(70)

(5,420)

1,169

83

287

Net increase (decrease) in cash and cash equivalents

4,698(2,232)

Cash and cash equivalents, beginning of period

16,451

21,149Cash and cash equivalents, end of period

21,14918,916

Purchase of investment securities
Proceeds from sales of investment securities
Proceeds from withdrawal of investment in silent
partnership
Loans receivable

Cash flows from financing activities

Net cash provided by (used in) financing activities
Foreign currency translation adjustments on cash
and cash equivalents15(5) Notes on Consolidated Financial Statements(Note on the Going-concern Assumption)
Not applicable(Changes in Significant Subsidiaries During the Period)
In the fourth quarter of the fiscal year ended December 31, 2023, the Company invested in asilent partnership operated by a limited liability company, Shinurayasu SPC, and included it in thescope of consolidation.
(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ
Guidance No. 31, June 17, 2021, hereinafter the “Fair Value Measurement Guidance”) has been
applied from the beginning of the fiscal year ended December 31, 2023. In accordance with thetransitional treatment set forth in Paragraph 27-2 of the Fair Value Measurement Guidance, the
new accounting policy prescribed by the Fair Value Measurement Guidance has been applied
prospectively. This application has no impact on the consolidated financial statements.
(Changes in Presentation)(Consolidated Statements of Income)“Provision of allowance for loss on shop closing,” which was included in “Other” under“Extraordinary loss” in the fiscal year ended December 31, 2022 (¥62 million in fiscal 2022),
exceeded 10/100 of the total amount of “Extraordinary loss,” and is therefore presented
separately from the fiscal year ended December 31, 2023.

16

(Segment Information)
1. Overview of reportable segment
The Group’s reportable segments are components of the Group for which separate financial
information is available. These segments are subject to periodic examinations to enable theCompany’s board of directors to decide how to allocate resources and assess performance.
The Group’s operations are classified into three reportable segments: the “Wedding
business” that provides services such as planning and operation related to wedding
ceremonies and banquets in Japan and overseas, the “Hotel business” that offers the
management of hotel weddings and banquets, and provision of hotel accommodation
services, and the “W&R business” that provides reflexology services and management of a
spa complex and a comprehensive fitness club.
The “Wedding business” comprises outlet management in Japan and sales to customers,
provision of food and drinks at wedding banquets, dress rental and beauty care services, aswell as management of wedding venues and operations for weddings and banquets in
Hawaii and Bali, mainly for customers who book through the Group's sales salons in Japan.
The "Hotel business" offers the management of hotel weddings and banquets, andprovision of hotel accommodation services at the "Hotel InterContinental Tokyo Bay", "TheStrings by InterContinental Tokyo", "The Strings Hotel Nagoya", and at "Kimpton Shinjuku
Tokyo".
The "W&R business" operates a British-style reflexology salon, "Queensway," with a highlevel of skills and sophisticated know-how of attending to customers, as well as managing a
spa complex, "Beauty & Relax SPA-HERBS", and "BEST STYLE FITNESS" comprehensive
fitness clubs.
2. Calculation of net sales, income/loss, assets, liabilities, and other items by reportablesegment
Accounting methods applied in the reportable business segments are in accordance withthe accounting policies that are adopted for the preparation of consolidated financial
statements. Reportable segment income is based on operating income.
Intersegment sales and transfers are based on market price.

17

3.

Net sales, income/loss, assets, and other items by reportable segment and information on
disaggregation of revenue
Year ended December 31, 2022 (January 1 to December 31, 2022)(millions of yen)

Reportable segment

Amountrecorded on
Adjustments consolidated(note 1)
financialstatements(note 2)

WeddingbusinessHotelbusiness

W&R
business

34,047

14,5542,961

51,563－51,563

135

－

－

135

－

135

34,182

14,554

2,961

51,699－51,699

1,871

1,027

31

2,930

(2,930)－Total

36,053

15,582

2,993

54,62951,699Segment income (loss)

6,154
29,418

(334)
2,429

4,378

Segment assets
Other items
Depreciation andamortization(1,441)
33,04464,892(2,930)(1,402)
22,579

1,499

1,893

184

3,577

61

3,638

77

128

138

343

－

343

Net sales
Revenue fromcontracts with customers
Other revenue
Sales to outside
customers
Inter-segment sales andtransfers

Amortization of goodwill

Total

2,976
87,472

Increase in tangible and
1,976
57
24
2,058
45
2,103
intangible assets
Notes: 1. Details of adjustments are as follows:(1) The minus 1,402 million yen adjustment for segment income (loss) includes a 90 million
yen elimination of inter-segment sales and minus 1,493 million yen of corporate expenses
that are not allocated 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) The 22,579 million yen adjustment for segment assets comprises corporate assets thatare not allocated to each reportable segment. Unallocated corporate assets consist
mainly of cash and deposits held by the Company which are not attributable to reportablesegments.
(3) The 61 million yen adjustment for depreciation and amortization comprises depreciation
and amortization for corporate assets that are not allocated to each reportable segment.
(4) The 45 million yen adjustment for increase in tangible and intangible assets comprises
investments in corporate assets that are not allocated to each reportable segment.
2. Segment income (loss) is adjusted to correspond with operating income reported on the
consolidated statements of income.
3. Matters related to changes in reportable segments, etc.

18

(Application of Accounting Standard for Revenue Recognition, etc.)
Due to changes in accounting treatment for revenue recognition as a result of the application of
the Accounting Standard for Revenue Recognition, etc., from the beginning of the fiscal year
ended December 31, 2023, similar changes have been made to the method of calculating
segment income/loss. As a result of this change, for the year ended December 31, 2023, net
sales decreased by ¥42 million in the “Wedding business”, by ¥33 million in the “Hotel business”,
and by ¥28 million in the “W&R business”, respectively.

19

Year ended December 31, 2023 (January 1 to December 31, 2023)(millions of yen)
Reportable segment
Weddingbusiness
Net sales
Revenue from contracts
with customers

Hotelbusiness

W&R
business

Adjustments(note 1)

Total

Amountrecorded on
consolidated
financialstatements(note 2)

34,18420,301

2,933

57,418－57,418

55

－

－

55

－

55

34,24020,301

2,933

57,474－57,474

2,056

1,012

32

3,101

(3,101)－

Total

36,29721,313

2,966

60,576(3,101)

57,474

Segment income (loss)

4,929

2,386

(113)

7,201

(1,860)5,341

Segment assets

35,85032,766

1,985

70,602

22,552

93,154

1,758

1,709

141

3,609

57

3,666

Amortization of goodwill

58

128

111

298

－

298

Increase in tangible andintangible assets

8,451

304

46

8,802

177

8,980

Other revenue
Sales to outside
customers
Inter-segment sales andtransfers

Other items
Depreciation andamortization

Notes: 1. Details of adjustments are as follows:(1) The minus 1,860 million yen adjustment for segment income (loss) includes a 23 million
yen elimination of inter-segment sales and minus 1,883 million yen of corporate
expenses that are not allocated to each reportable segment. The main component ofthese unallocated corporate expenses is general and administrative expenses that are
not attributable to reportable segments.
(2) The 22,552 million yen adjustment for segment assets comprises corporate assets thatare not allocated to each reportable segment. Unallocated corporate assets consist
mainly of cash and deposits held by the Company which are not attributable to reportablesegments.
(3) The 57 million yen adjustment for depreciation and amortization comprises
depreciation/amortization for corporate assets that are not allocated to each reportablesegment(4) The 177 million yen adjustment for increase in tangible and intangible assets comprises
investments in corporate assets that are not allocated to each reportable segment.
2. Segment income (loss) is adjusted to correspond with operating income reported on the
consolidated statements of income.

20

(Per Share Information)
Year ended December Year ended December
31, 2022
31, 2023
Net assets per share
479.39 yen
570.16 yen
Profit per share
31.42 yen
99.16 yen
Notes: 1. Diluted profit per share is not disclosed as there were no dilutive shares.
2. The calculation base for profit (loss) per share is as follows:Year ended December Year ended December
31, 2022
31, 2023
Profit attributable to owners of the parent(millions of yen)Amount not attributable to common
stockholders (millions of yen)
Profit attributable to common stock of ownersof the parent (millions of yen)
Average number of common stock
outstanding during the term (shares)(Significant Subsequent Events)
Not applicable

21

1,498

4,730

-

-

1,498

4,730

47,700,166

47,700,166

4. Other(1) Changes in Officers
Not applicable(2) Weddings Held and Orders Received
1) Number of weddings held
Year ended December 31, 2022
Segment
Number of weddings held (cases)
Wedding business
10,837
Hotel business
1,660
Annual total
12,497

Year ended December 31, 2023
Number of weddings held (cases)
10,462
1,708
12,1702) Wedding orders received
Year ended December 31, 2022
Orders received
Order backlog
Segment(cases)(cases)
Wedding business
9,810
5,980
Hotel business
1,559
1,120
Annual total
11,369
7,100

Year ended December 31, 2023
Orders received
Order backlog(cases)(cases)10,013
5,531
1,699
1,111
11,7126,642

22