〔Delayed〕The original disclosure in Japanese was released on February 14, 2022 at 15:00 (GMT+9)

February 14, 2022

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Fiscal Year ended December 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:
Annual general meeting of shareholders:March 30, 2022
Filing of statutory year-end financial report:
March 30, 2022
Dividend payout:
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, 2021
(January 1, 2021 – December 31, 2021)(1) Consolidated Operating Results
Net sales(Percentages indicate year-on-year changes)
Operating income

Ordinary income

Profit attributable toowners of the parent
million yen%

million yen%
million yen%
million yen%
Year ended
33,42923.3(6,391)(5,452)
December 31, 2021
Year ended
27,114(55.6)(11,476)(11,227)
December 31, 2020
Note: Comprehensive income: Year ended December 31, 2021:(5,796) million yen(-%)
Year ended December 31, 2020:(10,911) million yen(-%)
Diluted profit
Ordinary income
ProfitReturn on equity
per shareper share
to total assets
yen
yen
%
%
Year ended(128.67)(26.3)(5.7)
December 31, 2021
Year ended(222.82)(33.4)(11.3)
December 31, 2020
Reference: Equity in (earnings) losses of affiliates:
Year ended December 31, 2021: (178) million yen
Year ended December 31, 2020: (81) million yen(6,137)-(10,628)-

Operating income
to net sales%(19.1)(42.3)(2) Consolidated Financial Position

December 31, 2021

Total assets
million yen
90,901

20,641

22.5

Net assets per shareyen
428.77

26,43726.3

550.65

Net assets
million yen

99,814
December 31, 2020
Reference: Total equity: December 31, 2021: 20,452 million yen
December 31, 2020: 26,265 million yen

Equity ratio%

(3) Consolidated Cash Flows
Cash flows fromoperating activities
million yen
Year ended
December 31, 2021
Year ended
December 31, 2020

Cash and cash
equivalents at end of
periodmillion yen

Cash flows fromfinancing activities

Cash flows frominvesting activities
million yen

million yen(899)(1,916)(2,978)16,451(8,871)(7,702)

10,54522,202

2. Dividends
Dividend per share

Year ended
December 31, 2020
Year ended
December 31, 2021
Year ending
December 31, 2022
(Forecast)

Dividend
payout ratio(consolidated)

million yen%

Rate of total
dividend to
net assets(consolidated)%

End-Q1yen

End-Q2yen

End-Q3yen

Year-endyen

Annual total
yen

-

0.00

-

0.00

0.00

-

-

-

-

0.00

-

0.00

0.00

-

-

-

-

0.00

-

0.00

0.00

3. Earnings Forecast for the Fiscal Year ending December 31, 2022
(January 1, 2022 – December 31, 2022)
Net sales
million yen
Six months ending
June 30, 2022
Year ending
December 31, 2022

Total
dividends%-(Percentages indicate year-on-year changes)

Operating income

Ordinary income

million yen

million yen%%

Profit attributable toProfitowners of the parent
million yen%

per shareyen

25,210

92.1

(40)

-

(160)

-

(105)

-

(2.20)

60,230

80.2

5,325

-

5,055

-

3,355

-

70.34

*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) 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(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

December 31, 2021

December 31, 2020

48,960,000

48,960,000

1,259,834

1,259,834

Year ended

Year ended

December 31, 2021

December 31, 2020

47,700,166

47,700,166* This Earnings Report is exempt from auditing conducted by certified public accountants or byauditing 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 “(4) Earnings Forecast for the Fiscal Year ending December 31, 2022”
in the section “1. Review of Consolidated Financial Results” on page 4 in the accompanying materials.
(Presentation Handout Materials)
The Company has scheduled an earnings presentation targeted at institutional investors and analysts on
February 21, 2022.
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, 2022
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 Method of Presentation)(Additional Information)(Segment Information)(Per Share Information)(Significant Subsequent Events)
4. Other Information(1) Changes in Officers(2) Weddings Held and Orders Received

1

2
2
3
3
4
5
6
6
8
8
10
11
13
16
16
16
16
17
20
20
21
21
21

1. Review of Consolidated Financial Results(1) Operating Results
During the fiscal year ended December 31, 2021, the outlook for the Japanese economy remained
uncertain owing largely to the impact of resurgences of novel coronavirus infections on economic
activities and employment conditions, as well as stagnant consumer spending, and the absence ofoverseas visitors due to travel restrictions.
In this environment, the Tsukada Global Holdings Group (“the Group”) focused on creating newvalue, developing high-quality, appealing outlets, providing high value-added services in the bridal, hotel,
and wellness and relaxation (W&R) markets, and implementing thoroughgoing measures to prevent
coronavirus infections.
Although the fourth state of emergency declared in response to the resurgence of novel coronavirus
infections was lifted on September 30, 2021, it severely impacted the consolidated earnings results in all
segments for the current fiscal year. All segments were significantly affected by factors such as the
postponement of weddings to the next fiscal year or beyond, the decline in the average number ofguests per wedding, the downturn in restaurant customer numbers and hotel occupancy rates due totravel restrictions, and sluggish growth in the number of people reactivating their frozen fitness clubmemberships. In addition, the current global spread of the Omicron variant continues to make it difficult
to predict the future.
As a result, in the fiscal year ended December 31, 2021, the Group posted consolidated net sales of¥33,429 million (up 23.3% year on year). Although there are signs of a recovery from the previous fiscal
year, the Group continued to record significant losses. The Group recorded an operating loss of ¥6,391
million (compared to a loss of ¥11,476 million a year earlier), an ordinary loss of ¥5,452 million(compared to a loss of ¥11,227 million a year earlier) due to the receipt of employment adjustment
subsidies and various subsidies for responding to requests for business suspensions and shortening ofoperating hours. The net loss attributable to owners of the parent was ¥6,137 million (compared to a lossof ¥10,628 million a year earlier).
The results for each business segment were as follows.
1) Wedding businessIn fiscal 2021, despite the continued impact of the pandemic, wedding business sales appear to havebottomed out, with the number of weddings held increasing to 7,084 weddings (up 40.4% year onyear). However, it recorded losses due to a decline in profitability as a result of a decrease in the
average number of guests per wedding.
As a result, net sales in the wedding business came to 20,167 million yen (up 22.0% year on year)
and segment loss totaled ¥715 million (compared to a segment loss of ¥3,667 million a year earlier).
2) Hotel business
Segment sales increased in fiscal 2021, owing to the generation of a certain amount of revenue atsome hotels during the Tokyo Olympics and an increase in the number of weddings held at theGroup’s hotels to 1,259 (up 75.6% year on year) despite sluggish demand for corporate banquets, anddeclines in hotel occupancy and restaurant customer numbers, which were impacted by ongoing
restrictions on travel from overseas that have been in place since last year. However, the segment
recorded a loss as the overall overnight occupancy rates remained low for hotels, the earnings pillar of
the business.
2

As a result, net sales for the hotel business came to ¥10,526 million (up 32.3% year on year), andsegment loss totaled ¥3,780 million (compared to a loss of ¥5,393 million a year earlier).
3) W&R business (Wellness & Relaxation business)
Segment sales increased slightly, and, although profitability is recovering, the segment recorded a loss.
Customer traffic at British-style Queensway reflexology salons began to recover toward pre-pandemic
levels in fiscal 2021 despite some outlets having to respond to government requests to suspend
business operations, etc. 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 Best Style Fitness
comprehensive fitness club outlets struggled to attract new members due to the impact of the novel
coronavirus pandemic, and customers with frozen fitness club memberships have been slow toreactivate them.
As a result, the W&R business posted net sales of ¥2,735 million (up 4.1% year on year) and asegment loss of ¥525 million (compared to a loss of ¥678 million a year earlier).
(2) Analysis of Financial Condition
Assets, Liabilities, and Net Assets
Total assets at the end of fiscal 2021(December 31, 2021) amounted to ¥90,901 million, a decrease of¥8,912 million from the end of the previous fiscal year (December 31, 2020). The decrease mainlyreflects a decrease of ¥5,751 million in cash and deposits due to the impact of operating losses andrepayment of loans payable, and a decrease of ¥3,963 million in tangible assets due to depreciation andamortization and impairment losses.
Total liabilities as of the end of the current consolidated fiscal year amounted to ¥70,260 million, adecrease of ¥3,116 million from the end of the previous fiscal year. The decrease is chiefly attributable toa decrease of ¥1,289 million in short-term loans payable and a decrease of ¥1,403 million in long-termloans payable (including current portion) due to repayment.
Net assets at the end of fiscal 2021 totaled ¥20,641 million, a decrease of ¥5,796 million from the endof the previous fiscal year. The decrease was primarily due to a ¥6,137 million reduction in retained
earnings owing to the recording of net loss attributable to owners of the parent.
(3) Overview of Cash Flows
Cash and cash equivalents (“cash”) at the end of fiscal 2021 decreased by ¥5,751 million from the endof the previous fiscal year to ¥16,451 million. Cash flows and factors behind changes in the cash flows
are explained below.
(Operating cash flow)
Cash used in operating activities during fiscal 2021 totaled ¥899 million, compared to ¥8,871 million
used during the previous fiscal year. The change is mainly attributable to ¥7,083 million in loss before
income taxes, despite ¥3,724 million in depreciation and amortization and ¥1,512 million in impairment
loss.
(Investing cash flow)
Cash used in investing activities totaled ¥1,916 million, compared to ¥7,702 million used in the previous
fiscal year. The change is mainly the result of ¥780 million yen used for the purchase of tangible assets
associated with facility refurbishment and ¥1,876 million used for payments for investment in capital,
which were partially offset by ¥738 million from the collection of lease and guarantee deposits.
3

(Financing cash flow)
Cash used by financing activities totaled ¥2,978 million, compared to ¥10,545 million provided in theprevious fiscal year. The change is mainly attributable to repayments of long-term debt of ¥4,011 million
and a decrease in short-term debt of ¥1,289 million, which were partially offset by proceeds of ¥2,600
million from long-term debt;
Changes in the Group’s cash flow-related indicators are as follows.
FY2017FY2018FY2019FY2020

FY2021Equity ratio (%)

40.5

39.1

37.7

26.3

22.5

Equity ratio based on market value (%)

37.5

31.3

29.3

12.3

16.3

Cash flow to interest-bearing debt (years)

5.0

6.6

6.1

–

–

Interest coverage ratio (times)

33.9

26.3

17.3

–

–

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
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.
(4) Earnings Forecast for the Fiscal Year ending December 31, 2022
Regarding the consolidated earnings forecast for the fiscal year ending December 31, 2021, the present
uncertainty as to when the novel coronavirus pandemic will end means it continues to be difficult toestimate earnings forecast 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 thewedding business, we will continue to provide online meetings and online weddings, which are now
becoming more common, and promote e-commerce business related to wedding guest attire and dress
accessories sales. In addition, we will promote the expansion of the contract wedding business withwedding reception halls operated by other companies in the industry, and work to increase the number
of weddings handled with minimal investment. In the hotel business, the Group is committed tocontinuing to respond to the “new normal” by introducing remote working support plans and expanding
takeout and delivery product lines.
Taking the above into account, for the fiscal year ending December 31, 2022, the Group forecasts
consolidated net sales of ¥60,230 million (up 80.2% year on year), operating income of ¥5,325 million(compared to a loss of ¥6,391 million a year earlier), ordinary income of ¥5,055 million (compared to an
loss of ¥5,452 million a year earlier), and profit attributable to owners of the parent of ¥3,355 million(compared to a loss of ¥6,137 million a year earlier).

4

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.

5

3. 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
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
Total deferred assets
Total assets

6

December 31, 2020
Amount(millions of yen)
December 31, 2021
Amount22,291
816
1,471
107
481
2,289
(30)
27,427

16,539
1,000
1,526
182
381
1,192
(31)
20,79262,708(27,580)
35,128
11,929505
10,126(7,878)2,247
49,811

59,946(28,619)
31,327
12,276611
10,104(8,471)
1,633
45,847

2,076
641
2,717

1,732
651
2,383

4,665
8,156
6,107
868
(99)
19,70072,229

6,361
7,369
7,251
781
(107)
21,65669,887

156
156
99,814221
221
90,901Liabilities
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

7

December 31, 2020
Amount(millions of yen)
December 31, 2021
Amount

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

1,726
500
11,291
2,154
222
2,788
22
277
5,543
24,525

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

5,393
33,528
393
914
4,529
975
45,73470,260472
634
27,070(892)
27,284472
634
20,933(892)
21,146

(43)

(38)

(585)

(584)

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

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

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(millions of yen)
Year ended
Year ended
December 31, 2020 December 31, 2021
AmountAmount27,11433,429Net sales
Cost of sales
25,75727,2571,357
6,172
Gross profit
12,833
12,563
Selling, general and administrative expenses(11,476)(6,391)
Operating income (loss)
Non-operating income
Interest income
144
118
Gain on investments in silent partnership
154
175
Subsidy income
797
866
Compensation income
19
Foreign exchange gains
505
Other
211
212
Total non-operating income
1,327
1,878
Non-operating expenses
Interest expenses
428
457
Share of loss of entities accounted for using equity
81
178
methodLoss on investments in marketable securities
150
Loss on investments in capital
147
122
Foreign exchange loss
166
Other
103
181
Total non-operating expenses
1,078
939
(11,227)(5,452)
Ordinary income (loss)
Extraordinary income
Gain on sales of fixed assets
00Reversal of allowance for doubtful receivables
197
Reversal of provision for retirement benefits
3
14
Other
7
Total extraordinary income
20814
Extraordinary loss
Loss on disposal of fixed assets
65
24
Impairment loss
492
1,512
Loss on valuation of investment securities
511
Provision of allowance for loss on shop closing
275
Other
338
108
Total extraordinary loss
1,684
1,645
(12,703)(7,083)
Profit (loss) before income taxes
32
226
Income taxes - current(2,103)(1,170)
Income taxes - deferred(2,070)(944)
Total income taxes

8

Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of the parent

9(10,632)(4)(10,628)(6,139)(1)(6,137)

Consolidated Statements of Comprehensive Income

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

10

Year ended
December 31, 2020
Amount(10,632)(millions of yen)
Year ended
December 31, 2021
Amount(6,139)

29

4

(80)

0

(141)
(1)

174
0

(84)

162

(278)
(10,911)342(5,796)(10,899)(5,813)(12)

17

(3) Consolidated Statements of Changes in Net Assets
Year ended December 31, 2020 (January 1 to December 31, 2020)(millions of yen)
Shareholders’ equity

Balance at beginning of term

Capital stock

Capital surplus

472

634

Changes during term
Cash dividends
Profit (loss) attributable toowners of the parent
Net changes in items otherthan shareholders’ equity

Retainedearnings
37,937

Treasury stock
(892)

Total
shareholders’equity38,151

(238)

(238)

(10,628)(10,628)

Total changes during term--

(10,867)-(10,867)

Balance at end of term

472

634

27,070(892)

27,284

Accumulated other comprehensive income
Deferred gain
Foreign(loss) on
Remeasurements
currency
derivativesof definedtranslation
under hedge
benefit planadjustments
accounting

Total
accumulated
othercomprehensive
incomeNet unrealized
gain (loss) on
available-forsale securities
Balance at beginningof term

(72)

(504)

(163)

(5)

(747)

Noncontrollinginterests

Total net assets-

37,404

Changes during term
(238)

Cash dividends
Profit (loss)
attributable toowners of theparentNet changes in
items other thanshareholders’equityTotal changes during
term
Balance at end of
term(10,628)

29

(80)

(218)

(1)

(271)

171

(99)

29

(80)

(218)

(1)

(271)

171

(10,966)

(43)

(585)

(382)

(7)

(1,018)171

26,437

11

Year ended December 31, 2021 (January 1 to December 31, 2021)(millions of yen)
Shareholders’ equity

Balance at beginning of term

Capital stock

Capital surplus

472

634

Changes during term
Profit (loss) attributable toowners of the parent
Net changes in items otherthan shareholders’ equity

Retainedearnings

Treasury stock

27,070(892)(6,137)

Total
shareholders’equity27,284(6,137)

Total changes during term--

(6,137)-(6,137)

Balance at end of term

472

634

20,933(892)

21,146

Accumulated other comprehensive income
Deferred gain
Foreign(loss) on
Remeasurements
currency
derivativesof definedtranslation
under hedge
benefit planadjustments
accounting

Total
accumulated
othercomprehensive
incomeNet unrealized
gain (loss) on
available-forsale securities
Balance at beginningof term

(43)

(585)

(382)

(7)

(1,018)

Noncontrollinginterests

171

Total net assets

26,437

Changes during term
Profit (loss)
attributable toowners of theparentNet changes in
items other thanshareholders’equityTotal changes during
term
Balance at end ofterm(6,137)

4

0

317

0

323

17

341

4

0

317

0

323

17

(5,796)

(38)

(584)

(64)

(6)

(694)

189

20,641

12

(4) Consolidated Statements of Cash Flows(millions of yen)
Year ended
Year ended
December 31, 2020 December 31, 2021
AmountAmountCash 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 doubtful receivables
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 redemption of securities(Gain) loss on investments in securities(Gain) loss on sales of investment securities(Gain) loss on valuation of investment securities
Loss on valuation of affiliated companies’ shares
Compensation income(Gain) loss on sales of fixed assets
Shop closing expenses(Gain) loss on valuation of derivatives(Gain) loss on investments in silent partnership
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
Income taxes refund

13(12,703)
3,555
492
289
18
65
275

(7,083)
3,724
1,512
343
45
24
(252)

41

41

(190)
38
(147)
428

0
(3)
(118)
457

81

178

76
150
27
511
148
(19)
(0)
60
(0)
(154)
26

(10)
79
(0)
29
(175)
(506)

441

(183)

61
(1,012)

26
437

471

(158)

(1,162)41524
281(7,281)
90
(433)
-

1,665
289
(1,121)
246
(510)
57
(453)
43

Income taxes paid
Compensation income
Net cash provided by (used in) operating activities(1,266)19(8,871)

14

(36)
(899)

(millions of yen)
Year ended
Year ended
December 31, 2020 December 31, 2021
AmountCash 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
Payments for investments in capital
Repayment of contributions from the silent partnership
Loans receivable
Lease and guarantee deposits
Collection of lease and guarantee deposits
Proceeds from capital reduction with compensation ofaffiliated companies’ shares
Purchase of shares of subsidiaries resulting in change inthe scope of consolidation
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
Proceeds from stock issuance to non-controlling interests inconjunction with establishment of consolidated subsidiary
Net cash provided by (used in) financing activities
Foreign currency translation adjustments on cash andcash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period

15

Amount(8,409)
0
(516)
931
79
(46)
(44)
236

(780)
0
(107)
351
(52)
(1,876)
74
(72)
738

339

-

(469)

-

196
(7,702)(191)(1,916)

1,696
12,222(5,192)
2,540
(668)
(238)

(1,289)2,600(4,011)
489
(774)
(0)

183

7

10,545(2,978)(28)

43(6,056)28,25922,202(5,751)
22,202
16,451

(5) Notes on Consolidated Financial Statements(Note on the Going-concern Assumption)
Not applicable(Changes in Method of Presentation)(Consolidated Statements of Income)“Real estate rental income,” which was presented under a separate and independent heading under“Non-operating income” and which amounted to 40 million yen in the previous fiscal year, has been
included in “Other” under “Non-operating income” from the current fiscal year, due to a decrease in its
monetary materiality.
“Share of loss of entities accounted for using equity method,” which was included under “Other” of“Non-operating expenses” and which amounted to 81 million yen in the previous fiscal year, has
exceeded 10% of the total amount of “Non-operating expenses”. Accordingly, it has been reclassified
under a separate and independent heading from the current fiscal year.
“Real estate rental expenses,” which was presented under a separate and independent heading
under “Non-operating expenses” and which amounted to 49 million yen in the previous fiscal year, hasbeen included in “Other” under “Non-operating expenses” from the current fiscal year, due to a decrease
in its monetary materiality.
“Reversal of provision for retirement benefits,” which was included under “Other” of “Extraordinary
income” and which amounted to 3 million yen in the previous fiscal year, has exceeded 10% of the total
amount of “Extraordinary income”. Accordingly, it has been reclassified under a separate andindependent heading from the current fiscal year.
(Additional Information)
As for the impact of the novel coronavirus pandemic, despite the emergence and global spread of newvariants and the uncertainty which continues to surround the outlook for an end to the pandemic, media
reports and other sources suggest that while the rapidly spreading Omicron variant is more contagious, it isless likely to cause severe symptoms and while its spread is expected to be rapid case numbers are also
expected to swiftly decline after peaking. Furthermore, with regard to the vaccination rollout in Japan, as oftoday, February 14, 2022, more than 78% of residents have been vaccinated twice, and third vaccinations arealso expected to gradually gain momentum. Given the nature of Japanese consumer sentiment, the current
cautious stance toward personal consumption is expected to continue and recovery of the movement ofpeople is also expected to be gradual. Consequently, the Group assumes that the impact of the novel
coronavirus pandemic on its performance will continue until around the end of the second quarter of the fiscal
year ending December 31, 2022, and has accordingly made accounting estimates including judgments on
the recoverability of deferred tax assets and the impairment of fixed assets.
However, given the many uncertainties surrounding the impact of the novel coronavirus pandemic, theGroup’s financial position and the operating results for the current fiscal year could be significantly impacted in
the event that social and economic activities stall again due to further resurgences.

16

(Segment Information)
1. Overview of reportable segment
The Group’s reportable segments are components of the Group for which separate financial information isavailable. These segments are subject to periodic examinations to enable the Company’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” thatprovides services such as planning and operation related to wedding ceremonies and banquets in Japanand overseas, the “Hotel business” that offers the management of hotel weddings and banquets, andprovision of hotel accommodation services, and the “W&R business” segment that provides reflexology
services and management of a spa complex and a comprehensive fitness club.
“Wedding business” comprises outlet management in Japan and sales to customers, provision of foodand drinks at wedding banquets, dress rental and beauty care services, as well as management of venues
and operations for weddings and banquet in Hawaii and Bali, mainly for customers who book through theGroup’s sales salons in Japan.
“Hotel business” offers the management of hotel weddings and banquets, and provision of hotel
accommodation services at “Hotel InterContinental Tokyo Bay,” “The Strings by InterContinental Tokyo,”“The Strings Hotel Yagoto Nagoya,” “The Strings Hotel Nagoya,” and at “Kimpton Shinjuku Tokyo.”“W&R business” operates a British-style reflexology salon, “Queensway” with a high level of skills andsophisticated 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 reportable segment
Accounting methods applied in the reportable business segments are in accordance with the accounting
policies that are adopted for the preparation of consolidated financial statements.
Reportable segment income is based on operating income.
Intersegment sales or transfers are based on market price.

17

3. Net sales, income/loss, assets, liabilities, and other items by reportable segment

Year ended December 31, 2020 (January 1 to December 31, 2020)(millions of yen)

Reportable segment

Adjustments(note 1)

Amountrecorded on
consolidated
financialstatements(note 2)

27,114-

27,11413

1,033(1,033)-

2,642

28,148(1,033)

27,114(5,393)(678)(9,739)(1,736)(11,476)

37,613

4,709

72,07427,73999,814

1,565
22

1,572
128

272
138

3,410
289

145
-

3,555
289

3,764

7,165

19

10,948947

11,896

WeddingbusinessHotelbusiness

W&R
business

16,527

7,958

2,629

823

196

Total

17,3508,155

Segment income (loss)(3,667)

Segment assets

29,751

Net sales
Sales to outside
customers
Inter-segment sales
and transfers

Total

Other items
Depreciation/amortization
Amortization of goodwill
Increase in tangible andintangible assets

Notes: 1. Details of adjustments are as follows:(1) The minus 1,736 million yen adjustment for segment loss includes 54 million yen elimination of inter-segment sales
and minus 1,791 million yen of unallocated corporate expenses. The main component of these unallocatedcorporate expenses is general and administrative expenses that are not attributable to reportable segments.
(2) The 27,739 million yen adjustment for segment assets comprises unallocated corporate assets. Unallocatedcorporate assets consist mainly of cash and deposits held by the Company which are not attributable to reportablesegments.
(3) The 145 million yen adjustment for depreciation/amortization comprises depreciation/amortization for unallocatedcorporate assets.
(4) The 947 million yen adjustment for increase in tangible and intangible assets comprises investments in unallocatedcorporate assets.
2. Segment income (loss) is adjusted to correspond with operating income (loss) reported on the consolidated statements
of income.

18

Year ended December 31, 2021 (January 1 to December 31, 2021)(millions of yen)

Reportable segment

Net sales
Sales to outside
customers
Inter-segment sales
and transfers

WeddingbusinessHotelbusiness

W&R
business

20,167

10,526

2,735

1,349

405

34

Adjustments(note 1)

Amountrecorded on
consolidated
financialstatements(note 2)33,429-33,4291,789(1,789)

-

Total

Total

21,517

10,931

2,770

35,219(1,789)33,429Segment income (loss)(715)(3,780)(525)(5,022)(1,368)(6,391)

Segment assets

26,57334,037

3,463

64,074

26,82690,901

1,333
77

2,041
128

247
138

3,622
343

102
-

3,724
343

639

110

82

832

45

878

Other items
Depreciation/amortization
Amortization of goodwill
Increase in tangible andintangible assets

Notes: 1. Details of adjustments are as follows:(1) The minus 1,368 million yen adjustment for segment loss includes 44 million yen elimination of inter-segment sales
and minus 1,412 million yen of unallocated corporate expenses. The main component of these unallocatedcorporate expenses is general and administrative expenses that are not attributable to reportable segments.
(2) The 26,826 million yen adjustment for segment assets comprises unallocated corporate assets. Unallocatedcorporate assets consist mainly of cash and deposits held by the Company which are not attributable to reportablesegments.
(3) The 102 million yen adjustment for depreciation/amortization comprises depreciation/amortization for unallocatedcorporate assets.
(4) The 45 million yen adjustment for increase in tangible and intangible assets comprises investments in unallocatedcorporate assets.
2. Segment income (loss) is adjusted to correspond with operating income (loss) reported on the consolidated statements
of income.

19(Per Share Information)
Year ended December 31, 2020
Year ended December 31, 2021
Net assets per share
550.65 yen
428.77 yen
Profit (loss) per share(222.82) yen(128.67) yen
Notes: 1. Diluted profit per share for fiscal 2020 and fiscal 2021 is not disclosed as a loss per share wasrecorded and there were no dilutive shares.
2. The calculation base for profit (loss) per share is as follows:Year ended
December 31, 2020

Year ended
December 31, 2021

(10,628)(6,137)--(10,628)(6,137)47,700,166

47,700,166

Profit (loss) per share
Profit (loss) attributable to owners of theparent (millions of yen)Amount not attributable to common
stockholders (millions of yen)
Profit (loss) attributable to common stock ofowners of the parent (millions of yen)
Average number of common stock
outstanding during the term (shares)(Significant Subsequent Events)
Not applicable204. Other Information(1) Changes in Officers
Not applicable(2) Weddings Held and Orders Received
1) Number of weddings held
Year ended December 31, 2020

Year ended December 31, 2021

Number of weddings held (cases)
5,044

Number of weddings held (cases)
7,084

Hotel business

717

1,259

Total

5,761

8,343

Year ended December 31, 2020

Year ended December 31, 2021

Segment
Wedding business2) Wedding orders received

Segment
Wedding business
Hotel business
Total

Orders received

Order backlog

Orders received

Order backlog(cases)4,864(cases)6,338(cases)7,753(cases)
7,007

864

1,178

1,302

1,221

5,728

7,516

9,055

8,228

21