〔Delayed〕The original disclosure in Japanese was released on May 7, 2021 at 15:00 (GMT+9)

May 7, 2021

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Three Months ended March 31, 2021
(Japanese GAAP)
Stock listing: Tokyo Stock Exchange (First Section)
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):May 10, 2021
Dividend payout:
Supplementary materials to quarterly financial results available: No
Quarterly earnings presentation held: No(Amounts rounded down to the nearest million yen)

1. Consolidated Performance for the Three Months ended March 31, 2021
(January 1, 2021 – March 31, 2021)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)

Net sales
million yen%

Operating income

Ordinary income

million yen

million yen%%

Profit attributable toowners of the parent
million yen%

Three months ended
5,138(49.8)(3,774)(3,340)March 31, 2021
Three months ended
10,232(21.6)(2,088)(2,568)March 31, 2020
Note: Comprehensive income: Three months ended March 31, 2021: (2,457) million yen (- %)Three months ended March 31, 2020: (2,849) million yen (- %)Diluted profit
per shareyen

Profitper shareyen
Three months ended
March 31, 2021
Three months ended
March 31, 2020

(58.43)-(50.68)-(2) Consolidated Financial Position

March 31, 2021

Total assets

Net assets

Equity ratio

million yen

million yen%

96,003

99,814
December 31, 2020
Reference: Total equity: March 31, 2021:
23,796 million yen
December 31, 2020:
26,265 million yen

23,98024.8

26,43726.3(2,787)-(2,417)-

2. Dividends
End-Q1yen

End-Q2yen

Dividend per share
End-Q3yen

Year ended
0.00
December 31, 2020
Year ending
December 31, 2021
Year ending
December 31, 2021
0.00
(Forecast)
Note: No revision has been made to the latest dividends forecast.

Year-endyen

Annual total
yen

-

0.00

0.00

-

0.00

0.00

3. Earnings Forecast for the Fiscal Year ending December 31, 2021
(January 1, 2021 – December 31, 2021)(Percentages indicate year-on-year changes)
Net sales
million yen
Six months ending
June 30, 2021
Year ending
December 31, 2021%

Operating income

Ordinary income

million yen

million yen%%

Profit attributable toProfitowners of the parent
million yen%

per shareyen

15,30029.7(2,780)-(2,990)-(1,970)-(41.30)40,000

47.5

1,000

-

580

-

380

-

7.97

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 “(3) Notes on Quarterly Consolidated Financial Statements(Application of Specific Accounting Methods for the Preparation of Quarterly Consolidated
Financial Statements)” in section “2. Quarterly Consolidated 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)

March 31, 2021

December 31, 2020

48,960,000

48,960,000

2) Number of shares held in treasury at endof period

1,259,834

1,259,834

Three Months ended Three Months ended
March 31, 2021
March 31, 2020
3) Average number of shares outstanding
during the period

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, 2021”
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, 2021
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)(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
9
11
11

1. Review of Consolidated Financial Results(1) Operating Results
In the first three months of the fiscal year ending December 31, 2021, the Japanese economy
continued to face extremely difficult conditions with stagnation of economic activities owing to theresurgence of novel coronavirus infections impacting corporate earnings and employment conditions.
The outlook remains uncertain as the unchecked resurgence of new infections has led to thedeclaration of a third state of emergency.
In this environment, the Tsukada Global Holdings Group (“the Group”) focused on creating newvalue, developing high-quality, appealing outlets, and providing high value-added services in thebridal, hotel, and wellness and relaxation (W&R) markets and on taking all possible measures toprevent novel coronavirus infections at all its facilities. However, all segments of the Group wereseverely impacted by deteriorating consumer sentiment, which led to a decline in the number of
weddings held, declines in hotel occupancy and restaurant customer numbers, which were also
impacted by ongoing restrictions on overseas travel, and sluggish growth in the number of people
reactivating their frozen fitness club memberships.
As a result, in the first quarter of 2021, the Group posted consolidated net sales of ¥5,138 million(down 49.8% year on year). The Group recorded a first-quarter operating loss of ¥3,774 million(compared with a loss of ¥2,088 million a year earlier) and an ordinary loss of ¥3,340 million(compared with a loss of ¥2,568 million a year earlier). The net loss attributable to owners of theparent amounted to ¥ 2,787 million (compared with a loss of ¥2,417 million a year earlier).
The results for each business segment were as follows.
1) Wedding businessIn the first three months of fiscal 2021, the wedding business recorded a sales decline owing to adecrease in the number of weddings held to 959 (down 51.1% year on year) and a decrease in
the number of attendees per wedding amid the unclear prospects for an end to the pandemic. The
decline came despite signs that consumer sentiment was bottoming out against the background of
the resurgence of novel coronavirus infections. The segment recorded a loss due to a significant
decrease in sales despite efforts to streamline wedding services through in-sourcing.
As a result, net sales in the wedding business totaled ¥2,751 million (down 57.3% year onyear) and segment loss was ¥1,799 million (compared with a loss of ¥505 million a year earlier).

2) Hotel business
Segment sales declined in the first three months of fiscal 2021 owing to decreases in hotel
occupancy and the number of restaurant customers due to the impact of restrictions on travel toJapan from overseas, falling demand for corporate banquets, and a decline in the number of
weddings held at the Group’s hotels to 199 (down 23.2% year on year). The segment posted aloss despite efforts to control costs through such measures as efficient personnel allocation andshift management.
As a result, net sales in the hotel business came to ¥1,720 million (down 42.1% year on year),and segment loss totaled ¥1,492 million (compared with a loss of ¥973 million a year earlier).

23) W&R business
Segment sales declined in the first three months of fiscal 2021 because of a delay in moves bypeople to reactivate their frozen memberships at Best Style Fitness comprehensive fitness cluboutlets. This was despite the fact that customer traffic at British-style Queensway reflexology
salons is beginning to return to pre-pandemic levels. Segment loss, however, shrank year on year
owing to the implementation of a full-scale cost review and efficient outlet operations.
As a result, the W&R business posted net sales of ¥666 million (down 17.8% year on year)
and a segment loss of ¥119 million (compared with a loss of ¥152 million a year earlier).

(2) Analysis of Financial Conditions
Assets, Liabilities, and Net Assets
Total assets as of March 31, 2021, the end of the first three months of fiscal 2021, amounted to¥96,003 million, a decrease of ¥3,810 million from the end of the previous fiscal year (December 31,2020). The decrease mainly reflects a ¥2,452 million decline in cash and deposits owing mainly to therecording of a net loss attributable to owners of the parent and an ¥890 million decrease in “Other”(mainly consumption taxes receivable) under “Current assets”.
Total liabilities as of March 31, 2021, came to ¥72,023 million, a decrease of ¥1,353 million fromthe end of the previous fiscal year. The decrease mainly reflects a ¥987 million decline in long-term
debt (including the current portion) due to contractual repayments and a ¥339 million reduction inaccounts payable – trade in conjunction with a decrease in transaction volume, which offset anincrease in advances received of ¥496 million.
Net assets as of March 31, 2021, totaled ¥23,980 million, a decrease of ¥2,457 million from theend of the previous fiscal year. The decrease was primarily due to a ¥2,787 million decline in retained
earnings due chiefly to the posting of a net loss attributable to owners of the parent.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2021
There is no change to the consolidated earnings forecasts for the six months ending June 30, 2021
and the full fiscal year ending December 31, 2021 as announced in the Group’s full-year
Consolidated Earnings Report released on February 12, 2021. Note that as the impact of the novel
coronavirus pandemic is highly uncertain, the Company will promptly release any revisions to its
earnings forecasts should this become necessary due to developments relating to the pandemic.

3

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

December 31, 2020
AmountMarch 31, 2021
AmountAssetsCurrent assets
Cash and deposits
Accounts receivable - tradeMarketable securities
Merchandise
Raw materials and supplies
Other
Allowance for doubtful receivables
Total current assets

22,291
816
1,471
107
481
2,289
(30)
27,427

19,838
617
1,529
101
439
1,398
(30)
23,894

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

35,128
11,929505
2,247
49,811

34,585
12,143521
2,133
49,384

2,076
641
2,717

1,990
626
2,617

4,665
8,156
6,976
(99)
19,70072,229156
99,814

4,723
7,581
7,646
(104)
19,847
71,848260
96,003

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

(millions of yen)

December 31, 2020
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

5

March 31, 2021
Amount

1,283
1,789
3,985
774
32
2,940
275
445
5,675
17,201

943
1,782
3,980
759
193
3,437
171
426
5,533
17,227

6,947
42,237
393
872
4,498
1,224
56,17473,376

6,752
41,255
409
883
4,506
988
54,79572,023472
634
27,070(892)
27,284472
634
24,283(892)
24,497

(43)

(63)

(585)

(449)

(382)
(7)
(1,018)171
26,437
99,814

(179)
(8)
(700)
184
23,98096,003

(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
Dividend 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 securities
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
Total extraordinary income
Extraordinary loss
Loss on disposal of fixed assets
Shop closing expenses
Loss on valuation of investment securities
Other
Total extraordinary loss
Profit (loss) before income taxes
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of the parent

6

Three months
ended March 31,
2020
Amount10,232
8,193
2,038
4,127
(2,088)Three months
ended March 31,
2021
Amount
5,138
5,959
(821)
2,952
(3,774)

47
16
73
0
23
161

28
94
174
294
59
651

169
339

114
-

19

64

112
641
(2,568)39
218(3,340)

0
0

-

0
35
130
13
179
(2,748)(331)(2,417)(2,417)2
1
3(3,344)(558)(2,786)0(2,787)

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

Three months
ended March 31,
2020
Amount(2,417)

Three months
ended March 31,
2021
Amount(2,786)

(218)

(20)

(112)

135

(85)
0

110
(0)

(15)

103

(432)
(2,849)329(2,457)(2,849)(2,469)-12

(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(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 thecalculations 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 first quarter ended March 31, 2021, and then multiplying 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 is used.
(Additional Information)
A third state of emergency is currently in place, and it is difficult to predict at this time when thenovel coronavirus outbreak will be contained. However, vaccinations commenced in Japan in
April and vaccination is expected to gradually become more widespread in the second half of
2021.
The Group has made accounting estimates including judgments on the recoverability ofdeferred tax assets and the impairment of fixed assets, on the assumption that the number ofcustomers and orders received in the wedding business and the occupancy rate of the hotelbusiness will gradually recover from around the second half of this year when vaccination ofindividuals will become more widespread.
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 the further spread of infections.

8(Segment Information)
I. Three months ended March 31, 2020 (January 1 to March 31, 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 andtransfers

6,447

2,973

810

10,232-

10,232

298

65

5

368

(368)

-

Total

6,745

3,038

815

10,600(368)

10,232

Segment income (loss)

(505)

(973)

(152)

(1,631)(457)(2,088)Notes: 1. Minus 457 million yen adjustments for the segment income or loss include 32 million yen eliminationof inter-segment sales and minus 490 million yen corporate expenses that are not allocated to eachreportable segment. The main component of these unallocated corporate expenses is general andadministrative expenses that are not attributable to reportable segments.
2. Segment income or loss adjustments are based on operating income or loss reported on thequarterly consolidated statements of income for the corresponding period.

2. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable9II. Three months ended March 31, 2021 (January 1 to March 31, 2021)
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 andtransfers

2,751

1,720

660

5,138

-

5,138

232

34

7

274

(274)

-

Total

2,983

1,754

674

5,412

(274)

5,138

Segment income (loss)(1,799)(1,492)(119)(3,411)(362)(3,774)

Notes: 1. Minus 362 million yen adjustments for the segment income or loss include 4 million yen eliminationof inter-segment sales and minus 367 million yen corporate expenses that are not allocated to eachreportable segment. The main component of these unallocated corporate expenses is general andadministrative expenses that are not attributable to reportable segments.
2. Segment income or loss adjustments are based on operating income or loss reported on thequarterly consolidated statements of income for the corresponding period.

2. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable103. Supplementary Information(Weddings Held and Orders Received)1) Number of weddings held

Segment

Three months ended
March 31, 2020Three months ended
March 31, 2021

Year ended
December 31, 2020

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

1,960

959

5,044

Hotel business

259

199

717

Total

2,219

1,158

5,761

Wedding business2) Wedding orders received

Segment

Three months ended
March 31, 2020Three months ended
March 31, 2021

Year ended
December 31, 2020

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

3,098

7,656

1,688

7,067

4,864

6,338

Hotel business

423

1,195

318

1,297

864

1,178

Total

3,521

8,851

2,006

8,364

5,728

7,516

Wedding business11