〔Delayed〕The original disclosure in Japanese was released on November 6, 2015 at 15:00 (GMT+9)

November 6, 2015

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Nine Months ended September 30, 2015
(Japanese GAAP)
Stock listing: Tokyo Stock Exchange (First Section)
Securities code: 2418
URL: http://www.tsukada-global.holdings/en/
Representative: Masayuki Tsukada, President and CEO
Information contact: Keiji Ishihara, Director
Tel: +81-3-5464-0081
Scheduled dates:
Filing of statutory quarterly financial report(shihanki hokokusho): November 13, 2015
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 Nine Months ended September 30, 2015
(January 1, 2015 – September 30, 2015)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)

Net sales
million yen%

Operating income
million yen%

Ordinary income
million yen%

Net income
million yen%

Nine months ended
37,875
8.9
2,835
12.2
2,857
6.5
September 30, 2015
Nine months ended
34,7935.6
2,526(24.8)
2,683(22.5)
September 30, 2014
Note: Comprehensive income: Nine months ended September 30, 2015: 1,410 million yen (-13.6 %)Nine months ended September 30, 2014: 1,633 million yen (-17.8 %)Diluted net income
per shareyen

Net income
per shareyen
Nine months ended
September 30, 2015
Nine months ended
September 30, 2014

37.51

33.48

32.59

29.10

(2) Consolidated Financial Position
Total assets

Net assets

million yen
September 30, 2015

million yen
69,65929,63367,26928,710December 31, 2014
Reference: Total equity: September 30, 2015: 29,633 million yen
December 31, 2014: 28,710 million yen
Total equity =Shareholders’ equity plus total accumulated other comprehensive income.

Equity ratio
%
42.5
42.7

1,831

15.1

1,591

(16.1)

2. Dividends
End-Q1yen

End-Q2yen

Dividend per share
End-Q3yen

Year ended
5.00
December 31, 2014
Year ending
5.00
December 31, 2015
Year ending
December 31, 2015
(Forecast)
Note: No revision has been made to the latest dividends forecast.

Year-endyen

Annual total
yen

5.00

10.00

5.00

10.00

-

3. Earnings Forecast for the Fiscal Year ending December 31, 2015
(January 1, 2015 – December 31, 2015)(Percentages indicate year-on-year changes)
Net sales
million yen%

Operating income

Ordinary income

million yen

million yen%

Year ending
56,420
9.1
6,470
1.0
December 31, 2015
Note: No revision has been made to the latest earnings forecast.

6,490

%
(3.3)

Net income per

Net income
million yen
4,200

%

share
yen

(2.2)

86.02

*Notes(1) Changes affecting the consolidation status of significant subsidiaries during the period: Yes
Newly consolidated: None
Newly deconsolidated: Retreat Co., Ltd.
Note: For details, please refer to “(1) Changes in Significant Subsidiaries” in Section “2.
Other Information” on page 3.
(2) Use of accounting methods specific to the preparation of quarterly consolidated financial
statements: Yes
Note: For details, please refer to “(2) Application of Specific Accounting Methods for
the Preparation of Quarterly Financial Statements” in Section “2. Other Information”
on page 3.
(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 the end of theperiod (including treasury stock)2) Number of shares held in treasury stock at theend of the period

September 30, 2015

December 31, 2014

48,960,000

48,960,000

131,534

131,534

Nine Months ended Nine Months ended
September 30, 2015 September 30, 2014
3) Average number of shares outstanding during
the period

48,828,466

48,828,488* Quarterly Review Status
This report is exempt from the review requirements of Japan’s Financial Instruments and Exchange Act. Asof this report publication, a review of the consolidated quarterly financial statements in accordance with the
Act is underway.
*Appropriate Use of Earnings Forecast and Other Important Information
The above forecasts are based on information available as of this report’s publication and on
certain assumptions that are deemed reasonable. Actual results may differ from forecasts due tochanges in the business environment. For the assumptions underlying the forecasts herein andother notice on the use of earnings forecasts, please refer to “(3) Earnings Forecast for the Fiscal
Year ending December 31, 2015” in the section “1. Review of Consolidated Financial Results” onpage 3 in the accompanying materials.

Accompanying Material – Contents
1. Review of Consolidated Financial Results(1) Operating Results(2) Financial Condition(3) Earnings Forecast for the Fiscal Year ending December 31, 2015
2. Other Information(1) Changes in Significant Subsidiaries(2) Application of Specific Accounting Methods for the Preparation of Quarterly
Financial Statements(3) Changes in Accounting Policy, Changes in Accounting Estimates, andRetrospective Restatement
3. Consolidated Financial Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income(3) Notes on the Financial Statements(Note on the Going-concern Assumption)(Note on Significant Changes in the Amount of Shareholders’ Equity)(Segment and Other Information)
4. Supplementary Information

1

2
2
3
3
3
3
3
4
5
5
7
7
8
9
9
9
9
11

1. Review of Consolidated Financial Results(1) Operating Results
In the first nine months of the fiscal year ending December 31, 2015, the Japanese economy
stayed on a moderate recovery path owing to improvements in corporate earnings and theemployment environment. The outlook remained clouded, however, due to concerns over the
potential impact that European credit instability, China’s slowing growth and other global economic issues
could have on the Japanese economy.

Amid this environment, the Tsukada Group endeavored to increase sales and profitability bycontinuing to actively work toward creating new value in the bridal, hotel and relaxation markets;
creating high-quality, appealing outlets; and providing high value-added services in order toaccurately respond to customer needs that are becoming more individualized and varied.
As a result of the above factors, the Group posted consolidated net sales of ¥37,875 million in
the first nine months of the current fiscal year, an increase of 8.9% over the same period of theprevious fiscal year. Operating income totaled ¥2,835 million, a year-on-year increase of 12.2%,
ordinary income amounted to ¥2,857 million, a year-on-year increase of 6.5%, and net income
was ¥1,831 million, a year-on-year increase of 15.1%.
The results for each business segment were as follows.
Please note that the Group’s reporting segments have been changed, starting from the firstquarter of the fiscal year ending December 31, 2015. The year-on-year comparisons presented
below are based on figures for the same period of the previous fiscal year adjusted for the change
in reportable business segments for the current fiscal year.
1) Domestic wedding businessIn the first nine months of the fiscal year, the number of small weddings held rose steadily
compared with the same period of the previous year. Sales declined slightly overall, however,owing to a decline in the number of weddings held at existing outlets.
As a result, net sales in the domestic wedding business totaled ¥23,485 million, a year-on-year
decrease of 1.6%, and segment income came to ¥3,645 million, up 2.0% from the same period of
the previous fiscal year.
2) Hotel business
During the first nine months of the fiscal year, sales at the Hotel InterContinental Tokyo Bay and
The Strings by InterContinental Tokyo were firm and contributed to segment sales growth, boosted
mainly by the increase in the number of foreign visitors to Japan. Although the number of orders
placed at the Group’s Sasashima outlet in Nagoya scheduled to open this November grewsteadily, outlet-opening preliminary expenses of ¥255 million were booked during the period.
As a result, net sales in the hotel business reached ¥9,697 million, a year-on-year increase of
13.6%. The segment recorded a segment income of ¥200 million, compared with a segment lossof ¥62 million in the same period of the previous year.
3) Overseas business
During the first nine months of the fiscal year, despite stable market growth and an increase in thenumber of weddings held for non-Japanese couples, the overall number of weddings held andorders placed declined from the corresponding period the year before.
As a result, net sales in the overseas business totaled ¥2,439 million, a year-on-year increase of
2.1%, and segment income totaled ¥22 million, a year-on-year decline of 29.1%.
4) W&R business (Wellness & Relaxation business)
In the first nine months of the fiscal year, market conditions were strong and average spend per
customer and number of customers grew steadily.
As a result, net sales in the W&R business totaled ¥2,253 million and segment income totaled¥119 million.

2(2) Financial Condition
Assets, liabilities, and net assets
Total assets at the end of the third quarter (September 30, 2015) amounted to ¥69,659 million, an
increase of ¥2,390 million from the end of the previous fiscal year (December 31, 2014). This waschiefly due to an increase of ¥3,718 million in land in conjunction with the acquisition of land in
Hawaii for a hotel, a decrease of ¥3,851 million in investment securities, an increase of ¥1,475
million in cash and deposits, and an increase of ¥764 million in lease and guarantee deposits.
Liabilities at the end of the third quarter totaled ¥40,026 million, an increase of ¥1,468 million
compared with the end of the previous fiscal year. The increase in liabilities is attributable to a netincrease of ¥1,922 million in debts and bonds and an increase of ¥944 million in advances
received, which outweighed a decrease of ¥947 million in income taxes payable.
Net assets at the end of the third quarter totaled ¥29,633 million, an increase of ¥922 million
from the end of the previous fiscal year. This rise was mainly due to the booking of ¥1,831 million
in net income for the period, which outweighed the ¥488 million in dividends paid from retained
earnings.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2015
There is no change to the consolidated earnings forecasts for the year ending December 31, 2015,
which the Company announced on August 7, 2015 with the second-quarter financial report.

2. Other Information(1) Changes in Significant Subsidiaries
Effective from the second quarter (April 1, 2015 to June 30, 2015) of the current fiscal year, Retreat
Co., Ltd. has been absorbed by and merged with RAJA Co., Ltd., and, therefore, has been
deconsolidated. BEST HOSPITALITY LLC has been newly established during the third quarter
ended September 30, 2015, and, though not statutorily required, has been added to the scope of
consolidation.
(2) Application of Specific Accounting Methods for the Preparation of Quarterly 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 calculatedby allocating a quarterly proportion of the amount for the full financial 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 financial year, and therefore thecalculations are based on future earnings forecasts from the previous year and tax planning
methods.

3

(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 income before income taxes and minority interests for the
fiscal year, which encompasses the third quarter ended September 30 2015, and then multiplying
income (loss) before income taxes and minority interests by this estimated effective tax rate. In
cases where this estimated effective tax rate cannot be used, the statutory effective tax rate isused.
(3) Changes in Accounting Policy, Changes in Accounting Estimates, and Retrospective
Restatement(Application of Accounting Standard for Retirement Benefits, etc.)“Accounting Standard for Retirement Benefits” (Accounting Standards Board of Japan - ASBJ Statement No. 26 of May 17, 2012) and “Guidance on Accounting Standard for Retirement
Benefits” (ASBJ Guidance No. 25 of March 26, 2015) have now been applied, effective from thefirst quarter of the current consolidated fiscal year ending December 31, 2015, in accordance withthe provisions of Article 35 of the Accounting Standard for Retirement Benefits and Article 67 of the
Guidance on Accounting Standard for Retirement Benefits. As a result, the method for calculating
retirement benefit obligations and service costs, as well as the method of determining the discountrate, has been revised, and the method for attributing projected benefits to periods has beenchanged from the straight-line basis to the benefit formula basis.
As of the beginning of the first nine months of the fiscal year ending December 31, 2015
(January 1, 2015), there was no effect resulting from the said revision on the net defined benefit
liability, retained earnings and on the income statement.

43. Consolidated Financial Statements(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
Land
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

5

December 31, 2014

(millions of yen)
September 30 2015

AmountAmount13,441
871
4,214
40
480
1,922
(46)
20,923

14,916
807
362
41
538
2,253
(39)
18,88014,835
11,0232,251
28,10913,965
14,741
2,991
31,698

2,805
193
2,999

2,605
188
2,793

3,920
7,676
3,695
(164)
15,127
46,236
108
67,269

4,235
8,440
3,507
16,18450,676102
69,659

Liabilities
Current liabilities
Accounts payable - trade
Short-term debt
Current portion of long-term debt
Current portion of bonds
Income taxes payable
Advances received
Provision for point card certificates
Other
Total current liabilities
Fixed liabilities
Bonds
Convertible bonds with stock acquisition rights
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 on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments
Remeasurements of defined benefit plan
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

6

December 31, 2014
Amount(millions of yen)
September 30, 2015
Amount

2,327
2,426
684
1,634
1,188
18
3,184
11,463

2,341
260
2,525
724
686
2,132
2,796
11,4663,422
5,000
15,613
308
681
1,419
650
27,09438,5583,593
5,000
16,965
344
681
1,413
563
28,56040,026472
634
27,238(88)
28,256472
634
28,581(88)
29,599

167

(85)

7

-

282
(3)
454
28,71067,269122(3)
33
29,63369,659(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Gain on sales of marketable securities
Gain on investments in silent partnership
Foreign exchange gains
Gain on valuation of derivatives
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Foreign exchange loss
Fees and commissions paid
Other
Total non-operating expenses
Ordinary income
Extraordinary Income
Gain on sales of investment securities
Gain on sales of fixed assets
Total extraordinary income
Extraordinary loss
Loss on sales of fixed assets
Loss on disposal of fixed assets
Provision for loss on liquidation of subsidiaries/affiliates
Other
Total extraordinary loss
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in income (loss)
Net income

7

Nine months
ended September
30, 2014
Amount34,793
23,793
11,0008,473
2,526(millions of yen)
Nine months
ended September
30, 2015
Amount37,87525,571
12,304
9,469
2,835

54
106
126
96
56
39
481

63
44
43
130
78
359

155
159
11
325
2,683

167
66
85
18
337
2,857

7
0
8

1
1

22
22
2,669
1,079
1,589
(1)
1,591

30
16
18
30
95
2,762
931
1,831
1,831

Consolidated Statements of Comprehensive Income

Income before minority interests
Other comprehensive income
Net unrealized gain on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments
Remeasurements of defined benefit plan
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to minority
interests

8

Nine months
ended September
30, 2014
Amount1,589(millions of yen)
Nine months
ended September
30, 2015
Amount
1,831

16

(253)

(35)

(7)

63
43
1,633

(160)
0
(420)
1,410

1,633

1,410

-

-

(3) Notes on the Financial Statements(Note on the Going-concern Assumption)
Not applicable.

(Note on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable.

(Segment and Other Information)(Segment Information)
I. Nine months ended September 30, 2014 (January 1 to September 30, 2014)
1. Net sales and income/loss by reportable segment(millions of yen)

Reportable segment

Amountrecorded on

Domestic
weddingbusinessHotelbusiness

23,865

8,537

2,390

-

34,793-

34,793

556

126

0

-

683

(683)

-

Total

24,421

8,663

2,390

-

35,476(683)

34,793

Segment income or(loss)

3,573

(62)

31

-

3,542

(1,015)

2,526

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

Notes:

Overseasbusiness

W&R
business

Adjustments

Total

consolidated(note 1)statements ofincome (note 2)

1. Minus 1,015 million yen adjustments for the segment income or loss includes 34 million yen
elimination of inter-segment sales and minus 1,049 million yen corporate expenses that are notallocated to each reportable 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(Significant change in the amount of goodwill)In the W&R business segment, FAJA Co., Ltd. and its 2 subsidiaries have been added to the scopeof consolidation effective from the third quarter ended September 30, 2014, following the acquisitionof the shares of FAJA Co., Ltd. The increase in the goodwill related to the said acquisition amounts
to 1,387 million yen in the first nine months of the fiscal year ended December 31, 2014.

9

II. Nine months ended September 30, 2015 (January 1 to September 30, 2015)
1. Net sales and income/loss by reportable segment(millions of yen)

Reportable segment

Amountrecorded on

Domestic
weddingbusinessHotelbusiness

23,485

9,697

2,439

2,253

37,875-37,875

620

171

1

-

793

(793)

-

Total

24,106

9,868

2,441

2,253

38,669(793)

37,875

Segment income

3,645

200

22

119

3,987

(1,152)

2,835

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

Notes:

Overseasbusiness

W&R
business

Adjustments

Total

consolidated(note 1)statements ofincome (note 2)

1. Minus 1,152 million yen adjustments for the segment income includes 7 million yen eliminationof inter-segment sales and minus 1,160 million yen corporate expenses that are not allocated toeach reportable segment. The main component of these unallocated corporate expenses is
SG&A expenses that are not attributable to reportable segments.
2. Segment income adjustments are based on operating income reported on the quarterly
consolidated statements of income for the corresponding period.

2. Change in Reportable Segment(Change in classification of reportable segments)
Effective from the first quarter of the current consolidated fiscal year ending December 31, 2015,
Yagoto outlet and Sasashima outlet, which used to belong to the “Domestic wedding business”
segment, have now been classified in the “Hotel business” segment. This is in accordance with thechange in the management segmentation for the purpose of evaluating and managing the businessperformance of each reportable segment more appropriately.
Consequently, compared to the old classification, net sales of the “Hotel business” segment
increased by 1,297 million yen, and its segment income decreased by 159 million yen, while net
sales of the “Domestic wedding business” decreased by 1,297 million yen and its segment income
grew by 159 million yen.
The segment information for the nine months ended September 30, 2014 has been restated,reflecting this segment change.
3. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable.

104. Supplementary Information
Weddings Held, Orders Received, and Sales volume
1) Number of weddings held

Segment

Nine months ended
September 30, 2014

Nine months ended
September 30, 2015

Year ended
December 31, 2014

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

Domestic wedding

6,806

6,758

9,873

723

892

1,133

Overseas business

2,120

1,903

3,025

Total

9,649

9,553

14,031business
Hotel businessNote: Classification of reportable segments has been changed since the first three months ended March 31,
2015. The figures for the nine months ended September 30, 2014 and for the full year ended December 31,
2014, have been readjusted to the new reportable segments.

2) Wedding orders received

Segment
Domestic wedding

Nine months ended
September 30, 2014

Nine months ended
September 30, 2015

Year ended
December 31, 2014

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

7,752

6,328

7,263

5,793

9,779

5,288

960

911

1,416

1,369

1,304

845

Overseas business

2,314

1,671

1,767

1,238

2,922

1,374

Total

11,026

8,910

10,4468,400

14,005

7,507

business
Hotel businessNote: Classification of reportable segments has been changed since the first three months ended March 31,
2015. The figures for the nine months ended September 30, 2014 and for the full year ended December 31,
2014, have been readjusted to the new reportable segments.

3) Sales volume

Segment
Domestic wedding

Nine months ended
September 30, 2014

Nine months ended
September 30, 2015

Year ended
December 31, 2014

million yen

million yen

million yen

23,86523,48535,023

Hotel business

8,537

9,697

12,462

Overseas business

2,390

2,439

3,458

W&R business

-

2,253

747

Total

34,79337,87551,691business

11

Notes: 1. Classification of reportable segments has been changed since the first three months ended March 31,
2015. The figures for the nine months ended September 30, 2014 and for the full year ended December
31, 2014, have been adjusted to the new reportable segments.
2. Inter-segment transactions have been eliminated from the amounts shown above.
3. The above amounts do not include consumption tax.

12