〔Delayed〕The original disclosure in Japanese was released on August 10, 2022 at 15:00 (GMT+9)

August 10, 2022

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Six Months ended June 30, 2022
(Japanese GAAP)

Stock listing: Tokyo Stock Exchange (Prime Market)
Securities code: 2418
URL: https://www.tsukada-global.holdings/en/
Representative: Masayuki Tsukada, President and CEO
Information contact: Masahiro Yamazaki, Manager, Finance &Tel: +81-3-5464-0081
Accounting Department
Scheduled dates:
Filing of statutory quarterly financial report (shihanki hokokusho):August 12, 2022
Dividend payout:
Supplementary materials to quarterly financial results available: Yes
Quarterly earnings presentation held: Yes (targeted at institutional investors and analysts)(Amounts rounded down to the nearest million yen)

1. Consolidated Performance for the Six Months ended June 30, 2022
(January 1, 2022 – June 30, 2022)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)

Net sales
million yen%

Operating income

Ordinary income

million yen

million yen%

Six months ended
22,539
71.7
(349)
1,338
June 30, 2022
Six months ended
13,126
11.3(5,518)(5,007)
June 30, 2021
Note: Comprehensive income: Six months ended June 30, 2022: 941 million yen (- %)Six months ended June 30, 2021: (4,297) million yen (- %)owners of the parent
million yen
%

%
-

2

-

-

(4,452)-

Diluted profit
per shareyen

Profitper shareyen
Six months ended
June 30, 2022
Six months ended
June 30, 2021

Profit attributable to

0.05

-

(93.34)-(2) Consolidated Financial Position

June 30, 2022

Total assets

Net assets

Equity ratio

million yen

million yen%

87,75890,901
December 31, 2021
Reference: Total equity: June 30, 2022:
21,063 million yen
20,452 million yen
December 31, 2021:

21,29124.0

20,64122.5

2. Dividends
End-Q1yen

End-Q2yen

Dividend per share
End-Q3yen

Year-endyen

Annual total
yen

-

0.00

0.00

-

0.00

0.00

Year ended
0.00
December 31, 2021
Year ending
0.00
December 31, 2022
Year ending
December 31, 2022
(Forecast)
Note: No revision has been made to the latest dividends forecast.

3. Earnings Forecast for the Fiscal Year ending December 31, 2022
(January 1, 2022– December 31, 2022)(Percentages indicate year-on-year changes)
Net sales
million yen
Year ending
December 31, 2022

54,100%61.8

Operating income

Ordinary income

million yen

million yen

%

3,500

-

4,800

%
-

Profit attributable toProfitowners of the parent
million yen%

per share
yen

2,280

-

47.80

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

*Notes(1) Changes in significant subsidiaries during the period: None
(Changes in specific subsidiaries accompanying a change in scope of consolidation)
Newly Consolidated: None
Newly Deconsolidated: None
(2) Use of accounting methods specific to the preparation of quarterly consolidated financial statements:
Yes
Note: For details, please refer to “(4) Notes on Quarterly Consolidated Financial Statements(Application of Specific Accounting Methods for the Preparation of Quarterly Consolidated
Financial Statements)” in section “2. Quarterly Consolidated Financial Statements and Main
Notes” on page 11 in the accompanying materials.
(3) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
1) Changes in accordance with amendments to accounting standards, etc.: Yes
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 endof period3) Average number of shares outstanding
during the period

June 30, 2022

December 31, 2021

48,960,000

48,960,000

1,259,834

1,259,834

Six Months ended
June 30, 2022

Six Months ended
June 30, 2021

47,700,166

47,700,166* Quarterly earnings reports are exempt from quarterly review conducted by certified public accountants orby 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 as of thisreport’s publication and on certain assumptions that are deemed reasonable. These forecasts are notguarantees of future performance, and actual results may differ from forecasts due to changes in thebusiness environment. 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, 2022”
in the section “1. Review of Consolidated Financial Results” on page 2 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, 2022
2. Quarterly Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income(3) Consolidated Statements of Cash Flows(4) Notes on Quarterly Consolidated Financial Statements(Note on the Going-concern Assumption)(Note on Significant Changes in the Amount of Shareholders’ Equity)(Application of Specific Accounting Methods for the Preparation of Quarterly
Consolidated Financial Statements)(Changes in Accounting Policies)(Additional Information)(Segment Information)(Revenue Recognition)
3. Supplementary Information(Weddings Held and Orders Received)

1

2
2
3
3
5
5
7
7
8
9
11
11
11
11
11
13
14
15
16
16

1. Review of Consolidated Financial Results(1) Operating Results
Operating Results and Analysis of Financial Condition
During the first six months of the fiscal year ending December 31, 2022, the Japanese economy
showed signs of recovery, as evidenced by the lifting of priority measures to prevent the spread of
COVID-19 infections. But the outlook remains uncertain due to supply chain disruptions caused byheightened geopolitical risks and soaring logistics costs and raw material prices.
In this environment, the Tsukada Global Holdings Group (“the Group”) focused on creating new value,developing high-quality and attractive outlets, providing high value-added services in the bridal, hotel,
and wellness and relaxation (W&R) markets, and taking all possible measures to prevent coronavirus
infections at all of its facilities.
The number of weddings held in the Hotel and Wedding businesses, overnight occupancy rates, andaverage charge per night in the Hotel business have been on a slow recovery trend, and spend per
wedding was also expected to recover. However, due to the number of new COVID-19 cases risingand falling again in July 2022, the outlook remains clouded.
As a result, in the first six months of 2022, the Group posted consolidated net sales of ¥22,539 million(up 71.7% year on year). The Group recorded an operating loss of ¥349 million (compared with a lossof ¥5,518 million a year earlier), ordinary income of ¥1,388 million yen (compared with a loss of ¥5,007
million yen a year earlier) due to the receipt of various subsidies and foreign exchange gains from the
sharp deterioration of the yen, and net income attributable to owners of the parent of ¥2 million(compared with a loss of ¥4,452 million a year earlier) due to an increase in tax expenses.
The results for each business segment were as follows.
1) Wedding business
During the first six months of fiscal 2022, a gradual recovery trend began after the priority measures
to prevent a resurgence of COVID-19 infections were lifted in March. The number of weddings held
increased sharply to 4,834 (up 71.6% year on year), and the segment posted a profit despite the slow
recovery of spend per wedding.
As a result, net sales in the Wedding business totaled ¥15,086 million (up 89.7% year on year) andsegment profit was ¥2,070 million (compared with a loss of ¥1,793 million a year earlier).
2) Hotel business
The number of hotel weddings held increased sharply to 778 (up 52.5% year on year) in the first six
months of fiscal 2022. Overnight occupancy rates and average charge per night also recovered
slowly as domestic customers and business demand began to gradually return. However, recovery
was limited by the loss of demand from inbound tourists, and the segment posted a loss.
As a result, net sales in the Hotel business totaled ¥6,020 million (up 55.6% year on year) and thesegment loss was ¥1,522 million (compared with a ¥2,729 million loss a year earlier).

23) W&R businessIn the first six months of fiscal 2022, the number of visitors, net sales, and segment profit of the Beauty& Relax SPA-HERBS spa complex all exceeded those of the previous fiscal year, but the British-style
Queensway reflexology salons struggled to attract customers, resulting in a small increase insegment sales and recovering profitability.
As a result, net sales in the W&R business totaled ¥1,450 million (up 10.4% year on year) andsegment loss was ¥191 million (compared with a segment loss of ¥283 million a year earlier).
(2) Analysis of Financial Condition
1) Assets, Liabilities, and Net Assets
Total assets as of June 30, 2022, the end of the first six months of fiscal 2022, amounted to ¥87,758
million, a decrease of ¥3,142 million from the end of the previous fiscal year (December 31, 2021). Thisis mainly due to sales of investment securities and marketable securities, and a decrease of ¥1,031
million in Buildings and structures due to depreciation, respectively.
Total liabilities as of June 30, 2022 came to ¥66,467 million, a decrease of ¥3,792 million from theend of the previous fiscal year (December 31, 2021). The decrease mainly reflects an increase of¥1,087 million from the issuance of bonds (including the current portion) offset by decreases of ¥3,437
million in long-term debt (including the current portion) and ¥2,419 million in Other under Current
liabilities.
Net assets as of June 30, 2022 totaled ¥21,291 million, an increase of ¥649 million from the end of
the previous fiscal year. This mainly reflects an increase of ¥513 million in Foreign currency translation
adjustments due to exchange rate fluctuations.
2) Overview of Cash Flows
Cash and cash equivalents (“cash”) as of June 30, 2022 totaled ¥16,608 million, an increase of ¥156
million from the end of the previous fiscal year. Cash flows and factors behind changes in the cash
flows during the six months ended June 30, 2022, are as follows.
(Cash flows from operating activities)
Cash provided in operating activities totaled ¥2,160 million (cash used in the first half of the previous
year was ¥1,915 million). The change is mainly attributable to a ¥1,301 million profit before income
taxes and ¥1,761 million in depreciation and amortization.
(Cash flows from investing activities)
Cash provided by investing activities totaled ¥185 million, a decrease of 39.4% year on year. This ismainly attributable to a ¥1,101 million inflow from the sale of investment securities, which offset ¥644
million in payments for purchase of tangible assets to refurbish facilities/equipment.
(Cash flows from financing activities)
Cash used in financing activities totaled ¥2,372 million (cash provided in the first half of the previous
year was ¥2,205 million). This chiefly reflects inflows of ¥6,000 million from long-term debt and ¥1,488
million from the issuance of bonds offset by ¥9,437 million used for repayments of long-term debt

3

(3) Earnings Forecast for the Fiscal Year Ending December 31, 2022
The consolidated results forecast for the first six months and full fiscal year ending December 31, 2022
was revised, taking into account the Company’s performance and its progress during the first six
months of fiscal 2022. For details about the forecast revision, please refer to the August 5, 2022 news
release “Notice Regarding Revisions to Consolidated Earnings Forecasts for the Six Months Ending
June 30, 2022 and the Fiscal Year Ending December 1, 2021.”42. Quarterly Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheets(millions of yen)

December 31, 2021

June 30, 2022

AmountAmountAssetsCurrent assets
Cash and deposits
Accounts receivable - tradeMarketable securities
Merchandise
Raw materials and supplies
Other
Allowance for doubtful receivables
Total current assets

16,539
1,000
1,526
182
381
1,192
(31)
20,792

16,696
920
179
332
1,191
(28)
19,292

Fixed assets
Tangible assets
Buildings and structures, net
LandConstruction in progress
Other, net
Total tangible assets

31,327
12,276611
1,633
45,84730,295
12,923777
1,497
45,493

1,732
651
2,383

1,560
837
2,397

6,361
7,369
8,032
(107)
21,65669,887
221
90,901

5,773
7,306
7,413
(124)
20,36868,259206
87,758Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Other
Allowance for doubtful receivables
Total investments and other assets
Total fixed assets
Deferred assets
Total assets

5

(millions of yen)

December 31, 2021
AmountLiabilities
Current liabilities
Accounts payable - trade
Short-term debt
Current portion of long-term debt
Current portion of bonds
Income taxes payable
Advances received
Allowance for loss on shop closing
Asset retirement obligations
Other
Total current liabilities
Fixed liabilities
Bonds
Long-term debt
Net defined benefit liability
Provision for directors’ retirement benefits
Asset retirement obligations
Other
Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gain (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
6

June 30, 2022
Amount1,726
500
11,291
2,154
222
2,788
22
277
5,543
24,525

1,766
500
6,842
2,434
733
3,851
34
3,123
19,286

5,393
33,528
393
914
4,529
975
45,73470,2606,200
34,540
421
933
4,544
541
47,18066,467472
634
20,933(892)
21,146472
634
20,643(892)
20,857

(38)

(68)

(584)

(166)

(64)
(6)
(694)
189
20,64190,901

448
(7)
205
227
21,29187,758

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(millions of yen)

Net sales
Cost of sales
Gross profit (loss)
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Gain on investments in silent partnership
Subsidy income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on investments in capital
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Gain on sales of fixed assets
Gain on sales of memberships
Total extraordinary income
Extraordinary loss
Loss on disposal of fixed assets
Loss on sales of investment securities
Other
Total extraordinary loss
Profit (loss) before income taxes
Income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of the parent

7

Six months ended
June 30, 2021
Amount13,126
12,672454
5,972(5,518)Six months ended
June 30, 2022
Amount22,53915,918
6,620
6,969
(349)

58
94
371
298
113
936

19
71
856
1,313
55
2,317

229
-

227
146

100

28

95
425
(5,007)

228
629
1,338

0
0

0
3
3

24
1
26
(5,033)(581)(4,452)(0)(4,452)

0
34
5
40
1,301
1,296
4
2
2

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

8

Six months ended
June 30, 2021
Amount(4,452)Six months ended
June 30, 2022
Amount
4

(4)

(30)

(51)

418

108
(0)

235
(0)

102

313

154
(4,297)936
941(4,309)

902

11

38

(3) Consolidated Statements of Cash Flows(millions of yen)Six months
ended June 30,
2021
AmountCash flows from operating activities
Profit (loss) before income taxes
Depreciation and amortization
Amortization of goodwill
Amortization of bond issuance expenses
Loss on disposal of fixed assets
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in allowance for doubtfulreceivables
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using
equity method(Gain) loss on investments in securities(Gain) loss on sales of investment securities(Gain) loss on sales of fixed assets
Shop closing expenses(Gain) loss on investments in silent partnerships
Foreign exchange (gain) loss
(Increase) decrease in notes and accounts receivable- trade(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in advances received
Increase (decrease) in other liabilities
Decrease/increase in consumption taxes
receivable/payableOther
Sub totalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

9

Six months
ended June 30,
2022
Amount(5,033)
1,833
171
19
24

1,301
1,761
171
26
0

20

19

2

(2)

11
(58)
229

20
(19)
227

100

28

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

62
34
(0)
1
(71)
(1,230)

255

81

48

53

(215)

21

567
(334)

762
(382)

1,008

(398)

4
(1,739)
56
(226)
(7)
(1,915)

138
2,608
84
(227)
(304)
2,160

(millions of yen)

Cash flows from investing activities
Purchase of tangible assets
Proceeds from sales of tangible assets
Purchase of intangible assets
Proceeds from sales of investment securities
Purchase of affiliated companies’ shares
Proceeds from withdrawal of investment in silent
partnership
Lease and guarantee deposits
Collection of lease and guarantee deposits
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term debt
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds
Payments for redemption of bonds
Dividends paid to shareholders
Other
Net cash provided by (used in) financing activities
Foreign currency translation adjustments on cash
and cash equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period10

Six months
ended June 30,

Six months
ended June 30,

2021

2022

AmountAmount

(385)
0
(14)
191
(52)

(644)
0
(212)
1,101
-

-

109

(26)
642
(48)
305

(331)
396
(234)
185

279
(1,994)
(387)
(0)
(102)
(2,205)6,000(9,437)
1,488
(412)
(0)
(11)
(2,372)25

183(3,790)156

22,202
18,412

16,451
16,608

(4) Notes on Quarterly Consolidated Financial Statements(Note on the Going-concern Assumption)
Not applicable(Note on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable(Application of Specific Accounting Methods for the Preparation of Quarterly
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 the previous fiscal 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 second quarter ended June 30, 2022, 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.
(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020)
and related guidelines have been applied from the beginning of the first quarter of fiscal 2022. Inline with this, revenue is recognized upon the transfer of control for the promised goods orservices to customers in an amount that reflects the consideration which they expect to receive in
exchange for those goods or services.
The major changes due to the application of the Accounting Standard for Revenue
Recognition, etc. are as follows.
1) Revenue recognition related to the Wedding business
Regarding the recognition of revenue related to the Wedding business, revenue had
previously been recognized on the date on which the wedding ceremony or banquet was
held, but from the beginning of the first quarter of fiscal 2022, the recognition method has
been changed so that revenue is recognized for certain transactions at the point in time when
the handover of the goods or the delivery of the goods has been completed.

112) Revenue recognition related to the Hotel business
Regarding the recognition of revenue related to the Hotel business, revenue had previously
been recognized for each night stayed by the customer, but from the beginning of the firstquarter of fiscal 2022, the recognition method has been changed so that revenue isrecognized in line with the progress made in the provision of services.
3) Revenue recognition related to bonus points
Regarding the recognition of revenue related to the W&R business, bonus points awarded tocustomers at the time of sales had previously been recognized as selling, general andadministrative expenses, but from the beginning of the first quarter of fiscal 2022, therecognition method has been changed so that they are recognized as performanceobligations and the transaction price is allocated to the performance obligations based on thestand-alone selling price calculated considering the expected forfeiture rate, etc. of the bonus
points.
In the application of the Accounting Standard for Revenue Recognition, etc., in accordance withthe transitional treatment set forth in the proviso of Paragraph 84 of the Accounting Standard for
Revenue Recognition, the cumulative effect of retrospective application of the new accounting
policies prior to the beginning of the first quarter of fiscal 2022 was added to or subtracted fromretained earnings at the beginning of the first quarter of fiscal 2022. However, based on themethod set forth in Paragraph 86 of the Accounting Standard for Revenue Recognition, the new
accounting policies have not been retrospectively applied to the contracts in which almost all of
the revenue amount had been recognized prior to the beginning of the first quarter of fiscal 2022
in accordance with the previous treatment. In addition, based on supplementary provision (1),Paragraph 86 of the Accounting Standard for Revenue Recognition, regarding contracts modified
prior to the beginning of the first quarter of fiscal 2022, accounting treatment has been
implemented based on the contract conditions made after reflecting all the modifications to thecontracts, and the cumulative effects are added to or subtracted from retained earnings at the
beginning of the first quarter of fiscal 2022.
As a result, for the six months ended June 30, 2022, net sales decreased by ¥11 million; cost of
sales increased by ¥6 million; selling, general and administrative expenses decreased by ¥5
million; and operating income, ordinary income and profit before income taxes decreased by ¥12
million, respectively. In addition, the balance of retained earnings at the beginning of the year
decreased by ¥291 million.
Additionally, based on the transitional treatment set forth in Paragraph 89-2 of the AccountingStandard for Revenue Recognition, comparative information for the previous fiscal year has notbeen restated to reflect the new method of presentation. Furthermore, in accordance with thetransitional treatment set forth in Paragraph 28-15 of the "Accounting Standard for Quarterly
Financial Reporting" (ASBJ Statement No. 12, March 31, 2020), information on the
disaggregation of revenue arising from contracts with customers for the six months ended June30, 2021 is not presented.

12

(Application of “Accounting Standard for Fair Value Measurement,” etc.)
The “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4,2019) and related guidelines have been applied from the beginning of the first quarter of fiscal
2022. In accordance with the transitional treatment set forth in Paragraph 19 of the AccountingStandard for Fair Value Measurement and Paragraph 44-2 of the “Accounting Standard for
Financial Instruments” (ASBJ Statement No. 10, July 4, 2019), the new accounting policies
set forth in the Accounting Standard for Fair Value Measurement, etc., have beenprospectively applied. These changes have no impact on the quarterly consolidated financial
statements.
(Additional Information)
There are no significant changes to the assumptions regarding the impacts of the COVID-19
pandemic stated under “Additional Information” of the Consolidated Earnings Report for the
Fiscal Year ended December 31, 2021.
However, given the many uncertainties surrounding the impacts of the pandemic, theGroup’s financial position and the operating results for the fiscal year ending December 31,
2022 could be significantly affected, in the event that social and economic activities stall due tothe further spread of infections.

13

(Segment Information)
I. Six months ended June 30, 2021 (January 1 to June 30, 2021)
1. Net sales and income/loss by reportable segment(millions of yen)

Reportable segment

Amountrecorded on

Weddingbusiness
Net sales
Sales to outside
customers
Inter-segment sales andtransfersHotelbusiness

W&R
business

Total

consolidated
Adjustments

statements of(note 1)income (note 2)

7,942

3,869

1,314

13,126-

13,126

630

116

17

764

(764)

-

Total

8,573

3,985

1,331

13,890(764)

13,126

Segment income (loss)(1,793)(2,729)(283)(4,806)(711)(5,518)Notes: 1. Minus 711 million yen adjustments for the segment income or loss include a 10 million yen elimination ofinter-segment sales and minus 722 million yen in 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 income reported on the quarterly
consolidated statements of income for the corresponding period.

2. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable14II. Six months ended June 30, 2022 (January 1 to June 30, 2022)
1. Net sales and income/loss by reportable segment and information on the disaggregation of revenue(millions of yen)

Reportable segment

Amountrecorded on

Weddingbusiness
Net sales
Revenue from contracts
with customers
Other revenue

Hotelbusiness

W&R
business

Total

consolidated
Adjustments

statements of(note 1)income (note 2)

15,012

6,020

1,450

22,483-22,483

55

-

-

55

-

55

15,068

6,020

1,450

22,539-22,539

904

445

13

1,363

(1,363)-

Total

15,973

6,466

1,463

23,902(1,363)

22,539Segment income (loss)

2,070(1,522)

(191)

356

(706)

(349)

Sales to outside
customers
Inter-segment sales andtransfers

Notes: 1. Minus 706 million yen adjustments for the segment income or loss include a 41 million yen
elimination of inter-segment sales and minus 747 million yen in 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
Not applicable
3. Matters related to changes in reportable segments, etc.
(Application of Accounting Standard for Revenue Recognition, etc.)
As stated in Changes in Accounting Policies, due to changes in accounting treatment for revenue
recognition as a result of the application of the Accounting Standard for Revenue Recognition,etc., similar changes have been made to the method of calculating segment income/loss. As aresult of this change, for the six months ended June 30, 2022, net sales in the “Wedding
business” increased by ¥2 million, while net sales in the “Hotel business” and the “W&R business”
decreased by ¥10 million and ¥3 million, respectively.
(Revenue Recognition)
Information on the disaggregation of revenue from contracts with customers is as stated in“Notes on Quarterly Consolidated Financial Statements (Segment Information)”.

15

3. Supplementary Information(Weddings Held and Orders Received)1) Number of weddings held
Six months ended June30, 2021

Six months ended June30, 2022

Year ended
December 31, 2021

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

Segment

2,817

4,834

7,084

Hotel business

510

778

1,259

Total

3,327

5,612

8,343

Six months ended June30, 2021

Six months ended June30, 2022

Year ended
December 31, 2021

Wedding business2) Wedding orders received

Segment

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

3,625

7,146

5,421

7,594

7,753

7,007

Hotel business

661

1,329

842

1,285

1,302

1,221

Total

4,286

8,475

6,263

8,879

9,055

8,228

Wedding business16