〔Delayed〕 The original disclosure in Japanese was released on November 6, 2020 at 15:00 (GMT+9)

November 6, 2020

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Nine Months ended September 30, 2020
(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 13, 2020
No
No
(Amounts rounded down to the nearest million yen)

1. Consolidated Performance for the Nine Months ended September 30, 2020
(January 1, 2020 – September 30, 2020)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)
Profit attributable to

Net sales
million yen
Nine months ended
September 30, 2020
Nine months ended
September 30, 2019
Note: Comprehensive income:Ordinary income
million yen%

owners of the parent
million yen%%

Operating income
million yen%

17,103(60.9)(10,879)-(10,797)-(8,717)-43,754

3.4

3,494

86.7

3,321

64.8

2,077

70.4

Nine months ended September 30, 2020: (8,898) million yen ( - %)Nine months ended September 30, 2019: 1,620 million yen (102.1 %)Diluted profit
per shareyen

Profitper shareyen
Nine months ended
September 30, 2020
Nine months ended
September 30, 2019(182.76)

-

43.55

-

(2) Consolidated Financial Position

September 30, 2020

Total assets

Net assets

Equity ratio

million yen

million yen%

100,275

99,343
December 31, 2019
Reference: Total equity: September 30, 2020: 28,274 million yen
December 31, 2019: 37,404 million yen

28,45128.2

37,40437.7

2. Dividends
End-Q1yen

End-Q2yen

Dividend per share
End-Q3yen

Year ended
5.00
December 31, 2019Year ending
0.00
December 31, 2020
Year ending
December 31, 2020
(Forecast)
Note: No revision has been made to the latest dividends forecast.

Year-endyen

Annual total
yen

5.00

10.00

0.00

0.00

-

3. Earnings Forecast for the Fiscal Year ending December 31, 2020
(January 1, 2020 – December 31, 2020)(Percentages indicate year-on-year changes)
Net sales
million yen%

Operating income

Ordinary income

million yen

million yen

Year ending
December 31, 2020
Note: No revision has been made to the latest earnings forecast.

%
-

-

%

Profit attributable toProfitowners of the parent
million yen%

per share
yen

-

-

*Notes(1) Changes in significant subsidiaries during the period: Yes(Changes in specific subsidiaries accompanying a change in scope of consolidation)
Newly Consolidated: TGU LLC, HNRB QOZB II, LP
Newly Deconsolidated: None
Note: For details, please refer to “(3) Notes on Quarterly Consolidated Financial Statements(Changes in Significant Subsidiaries for the Nine Months ended September 30, 2020)”
under “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)” under “2. Quarterly Consolidated Financial
Statements and Main Notes” on page 8 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--(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

September 30, 2020

December 31, 2019

48,960,000

48,960,000

1,259,834

1,259,834

Nine Months ended
September 30, 2020

Nine Months ended
September 30, 201947,700,166

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,
2020” 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, 2020
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, 2020)(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)

1

2
2
3
3
4
4
6
6
7
8
8
8
8
8
8
10
12
12

1. Review of Consolidated Financial Results(1) Operating Results
In the first nine months of the fiscal year ending December 31, 2020, the Japanese economy
faced extremely difficult circumstances, with restrictions on social and economic activities
owing to the spread of the novel coronavirus impacting corporate earnings and employment
conditions. In the third quarter, consumer spending showed signs of a gradual recovery after
the lifting of the state of emergency, but the outlook remains unpredictable as the timing of an
end to the novel coronavirus outbreak remains uncertain.
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. However, all segments of theGroup were severely impacted by the sharp drop in the number of foreign visitors to Japan, an
increase in the number of wedding reception postponements and cancellations, and anincrease in membership suspensions and cancelations at comprehensive fitness club outlets,
all resulting from the novel coronavirus outbreak.
As a result, in the first nine months of 2020, the Group posted significantly decreased sales
and profits. Consolidated net sales were ¥17,103 million (down 60.9% year on year). The
Group recorded an operating loss of ¥10,879 (compared with a profit of ¥3,494 million a year
earlier) and an ordinary loss of ¥10,797 million (compared with a profit of ¥3,321 million a year
earlier). The net loss attributable to owners of the parent amounted to ¥8,717 million(compared with a profit of ¥2,077 million a year earlier).
The results for each business segment were as follows.
1) Wedding businessIn the first nine months of fiscal 2020, the wedding business recorded a sales decline owing
to an increase in the number of wedding reception postponements and cancelations due tothe impact of the novel coronavirus outbreak, with the number of wedding receptions held
falling significantly to 3,082 (down 65.5% year on year). Segment income also declined
despite concerted companywide cost reduction efforts.
As a result, net sales in the wedding business came to ¥10,305 million (down 63.4%
year on year), and segment loss totaled ¥4,515 million (compared with a profit of ¥4,801
million a year earlier).
2) Hotel business
Segment sales and income declined in the first nine months of fiscal 2020, because of adecrease in room revenue owing to the sharp drop in the number of foreign visitors toJapan, and because the number of weddings held at the Group’s hotels decreased to 403(down 64.6% year on year) owing to an increase in hotel wedding and banquet booking
postponements and cancelations, all due to the impact of the novel coronavirus outbreak.
As a result, net sales in the hotel business came to ¥4,921 million (down 60.9% year onyear), and segment loss totaled ¥4,416 million (compared with a profit of ¥77 million a year
earlier).

23) W&R business (Wellness & Relaxation business)
Segment sales and income declined in the first nine months of fiscal 2020 because of anincrease in membership suspensions and cancelations at the four Best Style Fitness
comprehensive fitness club outlets due to the impact of the novel coronavirus outbreak
As a result, the W&R business posted net sales of ¥1,877 million (down 37.8% year onyear) and an operating loss of ¥611 million (compared with a loss of ¥127 million a year
earlier).
(2) Analysis of Financial Condition
Assets, Liabilities, and Net Assets
Total assets as of September 30, 2020, the end of the first nine months of fiscal 2020,
amounted to ¥100,275 million, an increase of ¥932 million from the end of the previous fiscal
year (December 31, 2019). The increase mainly reflects an increase of ¥13,019 million inbuildings and structures related to the handover of the newly completed Kimpton Shinjuku
Tokyo hotel and an increase of ¥2,311 in “other” under investments and other assets
accompanying the recording of deferred tax assets due to a temporary deficit, which was offset
by a decrease of ¥8,284 million from a transfer from construction in progress to buildings andstructures, and a ¥7,382 million decrease in cash and deposits mainly due to capital
investments and the impact of operating losses.
Total liabilities as of September 30, 2020, came to ¥71,824 million, an increase of ¥9,884
million from the end of the previous fiscal year. The increase mainly reflects an increase of¥9,365 million in long-term debt mainly from capital investment financing and emergency
loans, and an increase of ¥2,187 million in asset retirement obligations related to the handoverof Kimpton Shinjuku Tokyo, which was offset by decreases of ¥1,255 million in income taxes
payable due to payment of income taxes, ¥1,359 million in accounts payable – trade, and¥1,886 million in other current liabilities.
Net assets as of September 30, 2020, totaled ¥28,451 million, ¥8,952 million less than at
the end of the previous fiscal year. The decrease was primarily due to a ¥8,956 million
reduction in retained earnings owing mainly to the posting of a quarterly net loss attributable toowners of the parent.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2020
As announced on August 7, 2020, the consolidated earnings forecast for the full fiscal year
ending December 31, 2020 has been left undetermined. This is because the present
uncertainty as to when the novel coronavirus outbreak will end means it is difficult toreasonably calculate the full-year consolidated earnings forecast figures at this time. The
Group will continue to monitor trends relating to the outbreak and will announce its
consolidated earnings forecasts when it becomes possible to calculate the forecast figures.

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, 2019
Amount(millions of yen)
September 30, 2020
Amount28,347
1,259
2,455
116
530
1,389
(22)
34,076

20,965
554
1,224
112
491
2,484
(25)
25,80722,199
9,574
9,837
1,909
43,52035,218
11,3581,552
2,346
50,477

1,475
195
1,670

2,153
623
2,776

6,721
8,451
4,964
(213)
19,925
65,115151
99,343

5,691
8,198
7,275
(100)
21,06574,318149
100,275

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, 2019
Amount(millions of yen)
September 30, 2020
Amount

2,298
4,617
668
1,275
2,442
6,557
17,859

938
1,352
3,989
668
19
3,374
4,670
15,012

5,157
34,209
303
831
2,412
1,167
44,08061,9396,113
43,574
394
862
4,599
1,268
56,811
71,824472
634
37,937(892)
38,151

472
634
28,981(892)
29,195

(72)

12

(504)

(596)

(163)
(5)
(747)
37,404
99,343

(330)
(5)
(920)
176
28,451
100,275

(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
Real estate rental income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Real estate rental expenses
Loss on investments in marketable securities
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of fixed assets
Gain on sales of shares of subsidiaries
Provision of allowance for doubtful receivables
Other
Total extraordinary income
Extraordinary loss
Loss on disposal of fixed assets
Shop closing expenses
Impairment loss
Loss on valuation of investment securities
Loss on valuation of affiliated companies’ shares
Other
Total extraordinary loss
Profit (loss) before income taxes
Income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of the parent

6

Nine months
ended September
30, 2019
Amount
43,75429,22014,534
11,0393,494

Nine months
ended September
30, 2020
Amount17,10318,070(966)
9,912(10,879)

58
153
183
0
119
515

115
154
26
585
165
1,048

336
156
12
183
689
3,321

320
38
362
245
966
(10,797)

23
207
230

0
197
13
211

6
71
19
16
113
3,438
1,391
2,046
(30)
2,077

12
43
102
145
110
79
492
(11,077)(2,356)(8,721)(3)(8,717)

Consolidated Statements of Comprehensive Income(millions of yen)

Profit (loss)
Other comprehensive income
Net unrealized gain (loss) on available-for-salesecurities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments
Remeasurements of defined benefit plan
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

7

Nine months
ended September
30, 2019
Amount2,046

Nine months
ended September
30, 2020
Amount(8,721)

(4)

85

(295)

(91)

(95)
(1)

(118)
0

(29)

(52)

(425)
1,620

(176)
(8,898)1,651(8,890)(30)(7)

(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, 2020)
The Company acquired the shares of Gloria Bridal Japan, Inc. (“Global Bridal”) and of its 2
subsidiaries in the third quarter ended September 30. Accordingly, Global Bridal and its 4
subsidiaries have been included in the scope of consolidation. As the deemed date of theacquisition being September 30, 2020, however, only the balance sheets of these entities havebeen consolidated in the third quarter ended September 30, 2020.
Also, TGU LLC and HNRB QOZB II, LP, newly established subsidiaries, have been included in
the scope of consolidation in the third quarter of the current 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 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 profit (loss) before income taxes for the
fiscal year, which encompasses the third quarter ended September 30, 2020, and thenmultiplying profit (loss) before income taxes by this estimated effective tax rate. In cases
where this estimated effective tax rate cannot be used, the statutory effective tax rate isused.
(Additional Information)
Although it is difficult to predict at this time when the novel coronavirus outbreak will becontained, the Group has made accounting estimates including judgments on therecoverability of deferred tax assets and the impairment of fixed assets, on the assumptionthat the wedding business, the Group’s mainstay business, will gradually recover its
number of customers and orders received from the fourth quarter (around October) of the8current fiscal year, and that the occupancy rate of the hotel business will gradually recoverfrom the second quarter (around April) of the following fiscal year.
However, given the many uncertainties surrounding the impact of the novel coronavirus
outbreak, 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.

9(Segment Information)[Segment Information]
I. 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)-

Total

29,25012,841

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 ended
December 31, 2019. Hence, the book value of these assets has been written down to therecoverable amount, and the resulting loss of 19 million yen has been reported as impairment
loss under the extraordinary loss.

10II. Nine months ended September 30, 2020 (January 1 to September 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

10,305

4,921

1,877

17,103-

17,103

443

109

8

561

(561)

-

Total

10,748

5,031

1,885

17,665(561)

17,103

Segment loss

(4,515)(4,416)(611)(9,544)(1,334)(10,879)

Notes: 1. Minus 1,334 million yen adjustments for the segment loss include 47 million yen elimination ofinter-segment sales and minus 1,381 million yen corporate expenses that are not allocated toeach reportable segment. The main component of these unallocated corporate expenses isgeneral and administrative expenses that are not attributable to reportable segments.
2. Segment 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(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 ending
December 31, 2020. Hence, the book value of these assets has been written down to therecoverable amount, and the resulting loss of 102 million yen has been reported as impairment
loss under the extraordinary loss.
(Significant change in the amount of goodwill)In the “Wedding business” segment, as a result of acquiring the shares of Gloria Bridal and ofits 2 subsidiaries, Global Bridal and its 4 subsidiaries have been included in the scope of
consolidation, effective from the third quarter of the current fiscal year.
The amount of goodwill increased by 864 million yen during the first nine months of the fiscal
year ending December 31, 2020, as a result of these share acquisitions.

113. Supplementary Information(Weddings Held and Orders Received)1) Number of weddings held
Nine months ended
September 30, 2019

Nine months ended
September 30, 2020

Year ended
December 31, 2019

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

Segment
Wedding business

8,923

3,082

12,385

Hotel business

1,139

403

1,611

Total

10,062

3,485

13,9962) Wedding orders received
Nine months ended
September 30, 2019
Segment

Nine months ended
September 30, 2020

Year ended
December 31, 2019

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

Wedding business

9,373

7,569

3,462

6,898

11,784

6,518

Hotel business

1,210

1,250

597

1,225

1,463

1,031

Total

10,583

8,819

4,059

8,123

13,2477,549

12