〔Delayed〕The original disclosure in Japanese was released on February 12, 2021 at 15:00 (GMT+9)

February 12, 2021

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Fiscal Year ended December 31, 2020
(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, 2021
Filing of statutory year-end financial report:
March 30, 2021
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, 2020
(January 1, 2020 – December 31, 2020)(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
27,114(55.6)(11,476)(11,227)
December 31, 2020
Year ended
61,121
1.5
6,383
21.6
6,222
18.4
December 31, 2019
Note: Comprehensive income: Year ended December 31, 2020:(10,911) million yen(-%)
Year ended December 31, 2019:2,302 million yen (33.5%)
Diluted profit
Ordinary income
ProfitReturn on equity
per shareper share
to total assets
yen
yen
%
%
Year ended(222.82)(33.4)(11.3)
December 31, 2020
Year ended
53.78
7.0
6.5
December 31, 2019
Reference: Equity in (earnings) losses of affiliates:
Year ended December 31, 2020:- million yen
Year ended December 31, 2019: (47) million yen(10,628)

-

2,565

5.8

Operating income
to net sales%(42.3)
10.4(2) Consolidated Financial Position

December 31, 2020

Total assets
million yen
99,814

26,437

26.3

Net assets per shareyen
550.6537,40437.7

784.15

Net assets
million yen

99,343
December 31, 2019
Reference: Total equity: December 31, 2020: 26,265 million yen
December 31, 2019: 37,404 million yen

Equity ratio%

(3) Consolidated Cash Flows
Cash flows fromoperating activities
million yen
Year ended
December 31, 2020
Year ended
December 31, 2019

Cash and cash
equivalents at end of
periodmillion yen

Cash flows fromfinancing activities

Cash flows frominvesting activities
million yen

million yen(8,871)(7,702)

10,54522,202

7,297(12,838)

9,686

28,2592. Dividends
Dividend per share

Year ended
December 31, 2019Year ended
December 31, 2020
Year ending
December 31, 2021
(Forecast)Total
dividends

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

-

5.00

-

5.00

10.00

477

18.6

1.3

-

0.00

-

0.00

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)
Net sales
million yen%-(Percentages indicate year-on-year changes)

Operating income

Ordinary income

million yen

million yen%%

Profit attributable toProfitowners of the parent
million yen%

per shareyen

Six months ending
June 30, 2021

15,30029.7(2,780)-(2,990)-(1,970)-(41.30)Year ending
December 31, 2021

40,000

47.5

1,000

-

580

-

380

-

7.97

*Notes(1) Changes in significant subsidiaries during the period: Yes(Changes in specific subsidiaries accompanying a change in scope of consolidation)
Newly Consolidated: TGU LLC, HNRB QOZB II, LP
Newly Deconsolidated: None
Note: For details, please refer to “(5) Notes on Consolidated Financial Statements (Changes inSignificant Subsidiaries for Fiscal 2020)” in the section “3. Consolidated Financial Statements andMain Notes” on page 15 in the accompanying materials.
(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, 2020

December 31, 2019

48,960,000

48,960,000

1,259,834

1,259,834

Year ended

Year ended

December 31, 2020

December 31, 201947,700,166

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, 2021”
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 22, 2021.
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 for Fiscal 2020
(2) Analysis of Financial Condition(3) Overview of Cash Flows(4) Earnings Forecast for the Fiscal Year Ending December 31, 2021
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 Significant Subsidiaries for Fiscal 2020)(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
4
5
5
7
7
9
10
12
15
15
15
15
15
16
19
19
20
20
20

1. Review of Consolidated Financial Results(1) Operating Results
In the fiscal year ended December 31, 2020, the Japanese economy faced extremely difficult
circumstances, with restrictions on social and economic activities owing to the spread of the novel
coronavirus impacting corporate earnings and employment conditions. In the second half, consumer
spending showed signs of a gradual recovery after the lifting of the state of emergency, but with thedeclaration of a second state of emergency due to a resurgence in infections, the situation remains
uncertain.
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 the bridal,
hotel, and wellness and relaxation (W&R) markets. However, all segments of the Group were severely
impacted by the sharp drop in the number of foreign visitors to Japan, an increase in the number of
wedding reception postponements and cancellations, and an increase in membership suspensions andcancellations at comprehensive fitness club outlets, all resulting from the novel coronavirus outbreak.
As a result, in the fiscal year ended December 31, 2020, the Group posted significantly decreased
sales and profits. Consolidated net sales were ¥27,114 million (down 55.6% year on year). The Group
recorded an operating loss of ¥11,476 million (compared with a profit of ¥6,383 million a year earlier) andan ordinary loss of ¥11,227 million (compared with a profit of ¥6,222 million a year earlier). The net loss
attributable to owners of the parent amounted to ¥10,628 million (compared with a profit of ¥2,565 million
a year earlier).
The results for each business segment were as follows.
1) Wedding businessIn fiscal 2020, the wedding business recorded a sales decline owing to an increase in the number of
wedding reception postponements and cancellations due to the impact of the novel coronavirus
outbreak, with the number of wedding receptions held falling significantly to 5,044 (down 59.3% year
on year). Segment income also declined despite concerted companywide cost reduction efforts.
As a result, net sales in the wedding business came to ¥16,527 million (down 58.1% year onyear), and segment loss totaled ¥3,667 million (compared with a profit of ¥7,797 million a year earlier).

2) Hotel business
Segment sales and income declined in fiscal 2020, because of a decrease in room revenue owing to
the sharp drop in the number of foreign visitors to Japan, and because the number of weddings heldat the Group’s hotels decreased to 717 (down 55.5% year on year) owing to an increase in hotel
wedding and banquet booking postponements and cancellations, all due to the impact of the novel
coronavirus outbreak.
As a result, net sales in the hotel business came to ¥7,958 million (down 55.2% year on year), andsegment loss totaled ¥5,393 million (compared with a profit of ¥477 million a year earlier).

3) W&R business (Wellness & Relaxation business)
Segment sales and income declined in fiscal 2020 because of an increase in membership
suspensions and cancellations at the four Best Style Fitness comprehensive fitness club outlets dueto the impact of the novel coronavirus outbreak.
2

As a result, the W&R business posted net sales of ¥2,629 million (down 33.3% year on year) andan operating loss of ¥678 million (compared with a loss of ¥229 million a year earlier).

(2) Analysis of Financial Condition
Assets, Liabilities, and Net Assets
Total assets at the end of fiscal 2020 (December 31, 2020) amounted to ¥99,814 million, an increase of¥470 million from the end of the previous fiscal year (December 31, 2019). The increase mainly reflects a¥15,163 million increase in buildings and structures related to the handover of the Kimpton Shinjuku
Tokyo hotel and a ¥2,134 million increase in deferred tax assets accompanying the recording of deferred
tax assets due to a temporary deficit. These were partially offset by a decrease of ¥9,331 million from atransfer from construction in progress to buildings and structures, and a ¥6,056 million decrease in cash
and deposits mainly due to capital investments and the impact of operating losses.
Total liabilities at the end of fiscal 2020 came to ¥73,376 million, an increase of ¥11,436 million fromthe end of the previous fiscal year. The increase is chiefly attributable to an increase of ¥8,028 million in
long-term debt mainly from capital investment financing and emergency loans, and an increase of¥2,530 million in asset retirement obligations related to the handover of Kimpton Shinjuku Tokyo. These
were partially offset by a decrease of ¥1,243 million in income taxes payable due to payment of income
taxes, and a decrease of ¥1,297 million in accounts payable - trade.
Net assets at the end of fiscal 2020 totaled ¥26,437 million, a decrease of ¥10,966 million from theend of the previous fiscal year. The decrease was primarily due to a ¥10,867 million reduction in retained
earnings owing mainly to the posting of loss attributable to owners of the parent.
(3) Overview of Cash Flows
Cash and cash equivalents (“cash”) at the end of fiscal 2020 decreased by ¥6,056 million from the end of
the previous fiscal year to ¥22,202 million. Cash flows and factors behind changes in the cash flows are
explained below.
(Operating cash flow)
Cash used in operating activities during fiscal 2020 totaled ¥8,871 million, compared with ¥7,297 million
provided during the previous fiscal year. The change is mainly attributable to ¥12,703 million in loss
before income taxes and a ¥1,295 million decrease in notes and accounts payable - trade, which werepartially offset by ¥3,555 million in depreciation and amortization.
(Investing cash flow)
Cash used in investing activities totaled ¥7,702 million, compared with ¥12,838 million used in theprevious fiscal year. The change is mainly the result of ¥8,409 million used for purchase of tangible
assets through capital investment.
(Financing cash flow)
Cash provided by financing activities in fiscal 2020 totaled ¥10,545 million, compared with ¥9,686 million
provided in the previous fiscal year. The change is mainly attributable to proceeds of ¥12,222 million fromlong-term debt and ¥2,540 million from the issuance of bonds, which were partially offset by repaymentsof long-term debt of ¥5,192 million.

3

Changes in the Group’s cash flow-related indicators are as follows.
Return on equity (%)
Return on equity based on market value(%)
Cash flow to interest-bearing debt (years)
Interest coverage ratio (times)

FY2016FY2017FY2018FY2019FY2020

38.5

40.5

39.1

37.7

26.3

39.3

37.5

31.3

29.3

12.3

5.8

5.0

6.6

6.1

–

27.2

33.9

26.3

17.3

–

Notes:
Return on equity: Total equity/Total assets
Return on equity 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, 2021
Regarding the consolidated earnings forecast for the fiscal year ending December 31, 2021, the present
uncertainty as to when the novel coronavirus outbreak will end means it continues to be difficult to
calculate earnings forecast figures. According to media reports and other sources, vaccination ofindividuals will commence in early spring and is expected to be steadily expanded in the second half of
this year, and the Group anticipates a gradual normalization of economic activities going forward.
At all our facilities, the Group will continue to take appropriate steps in response to the emerging “newnormal”. As well as implementing thorough infection control measures so that customers can use all
facilities with peace of mind, it will also work to develop online weddings and expand into e-commercebusiness related to wedding guest attire and dress accessory sales. In the hotel business, the Group iscommitted to introducing telework support plans and creating takeout and delivery products.
Taking the above into account, for the fiscal year ending December 31, 2021, the Group forecasts
consolidated net sales of ¥40,000 million (up 47.5% year on year), operating income of ¥1,000 million(compared with operating loss of ¥11,476 million a year earlier), ordinary income of ¥580 million(compared with ordinary loss of ¥11,227 million a year earlier), and profit attributable to owners of theparent of ¥380 million (compared with loss attributable to owners of the parent of ¥10,628 million a year
earlier).
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.

4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

5

December 31, 2019
Amount(millions of yen)
December 31, 2020
Amount28,347
1,259
2,455
116
530
1,389
(22)
34,076

22,291
816
1,471
107
481
2,289
(30)
27,42747,544(25,345)
22,199
9,574
9,837
9,141
(7,231)
1,909
43,52062,708(27,580)
35,128
11,929505
10,126(7,878)2,247
49,811

1,475
195
1,670

2,076
641
2,717

6,721
8,451
3,973
990
(213)
19,925
65,115

4,665
8,156
6,107
868
(99)
19,70072,229151
151
99,343

156
156
99,814

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

6

December 31, 2019
Amount(millions of yen)
December 31, 2020
Amount

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

1,001
1,789
3,985
774
32
2,940
275
445
5,957
17,201

5,157
34,209
303
831
2,412
1,167
44,08061,9396,947
42,237
393
872
4,498
1,224
56,17473,376472
634
37,937(892)
38,151

472
634
27,070(892)
27,284

(72)

(43)

(504)

(585)

(163)
(5)
(747)
37,404
99,343(382)(7)(1,018)171
26,437
99,814

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(millions of yen)
Year ended
Year ended
December 31, 2019 December 31, 2020
AmountAmount61,121
27,114
Net sales
Cost of sales
40,01425,757
21,107
1,357
Gross profit
14,724
12,833
Selling, general and administrative expenses
6,383(11,476)
Operating income (loss)
Non-operating income
Interest income
108144
Gain on investments in silent partnership
153
154
Real estate rental income
191
40
Subsidy income
0797
Compensation income
70
19
Other
142
171
Total non-operating income
667
1,327
Non-operating expenses
Interest expenses
422
428
Real estate rental expenses
164
49
Loss on investments in marketable securities
150
Loss on investments in capital
147
Foreign exchange loss
137
166
Other
104
135
Total non-operating expenses
828
1,078
6,222
(11,227)
Ordinary income (loss)
Extraordinary income
Gain on sales of fixed assets
230Gain on sales of shares of subsidiaries
207
Reversal of allowance for doubtful receivables
197
Other
10
Total extraordinary income
230
208
Extraordinary loss
Loss on disposal of fixed assets
223
65
Impairment loss
1,015
492
Loss on valuation of investment securities
511
Provision of allowance for loss on shop closing
275
Other
91
338
Total extraordinary loss
1,330
1,684
5,122
(12,703)
Profit (loss) before income taxes
2,385
32
Income taxes - current
202(2,103)
Income taxes - deferred
2,587(2,070)Total income taxes
2,535(10,632)
Profit (loss)

7

(30)
2,565

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

8(4)(10,628)

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

9

Year ended
December 31, 2019
Amount2,535(millions of yen)
Year ended
December 31, 2020
Amount(10,632)

69

29

(255)

(80)

(39)
(1)

(141)
(1)

(5)

(84)

(232)
2,302

(278)
(10,911)

2,332(10,899)

(30)

(12)

(3) Consolidated Statements of Changes in Net Assets
Year ended December 31, 2019 (January 1 to December 31, 2019)(millions of yen)
Shareholders’ equity

Balance at beginning of term

Capital stock

Capital surplus

472

634

Changes during term
Cash dividends
Profit attributable to owners of
the parent
Net changes in items otherthan shareholders’ equity

Retainedearnings
35,849Treasury stock
(892)

Total
shareholders’equity36,063

(477)

(477)

2,565

2,565

Total changes during term

-

-

2,088

-

2,088

Balance at end of term

472

634

37,937(892)

38,151

Net unrealized
gain (loss) on
available-forsale securities
Balance at beginningof term(142)

Accumulated other comprehensive income
Deferred gain
Total
Foreign(loss) on
Remeasurements accumulated
currency
derivativesof definedothertranslation
under hedge
benefit plancomprehensive
adjustments
accounting
income
(249)

(118)

(4)

(514)

Noncontrollinginterests

Total net assets

1,533

37,081

Changes during term
(477)

Cash dividends
Profit attributable toowners of theparentNet changes in
items other thanshareholders’equityTotal changes during
term
Balance at end of
term

2,565

69

(255)

(45)

(1)

(232)

(1,533)(1,766)

69

(255)

(45)

(1)

(232)

(1,533)

322

(72)

(504)

(163)

(5)

(747)

-

37,40410

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 attributable to owners 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

Net unrealized
gain (loss) on
available-forsale securities
Balance at beginningof term(72)

Accumulated other comprehensive income
Deferred gain
Total
Foreign(loss) on
Remeasurements accumulated
currency
derivativesof definedothertranslation
under hedge
benefit plancomprehensive
adjustments
accounting
income
(504)

(163)

(5)

(747)

Noncontrollinginterests

Total net assets-

37,404

Changes during term
(238)

Cash dividends
Profit 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

26,43711

(4) Consolidated Statements of Cash Flows(millions of yen)
Year ended
Year ended
December 31, 2019 December 31, 2020
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 sales of shares of subsidiaries(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

12

5,122
3,140
1,015
267
20
223
(20)

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

47

41

4
(1)
(114)
422

(190)
38
(147)
428

47

81

(207)
12
(39)
(70)
(23)
72
(13)
(153)
36

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

20

441

(28)
(138)

61
(1,295)

555

471

(185)
136
(169)
105
10,08415(422)(1,162)41807
281(7,261)
90(433)

Income taxes paid
Compensation income
Net cash provided by (used in) operating activities(2,449)
70
7,297

13

(1,266)(8,871)

Year ended
Year ended
December 31, 2019 December 31, 2020
AmountCash flows from investing activities
Purchase of tangible assets
Proceeds from sales of tangible assets
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
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 in thescope of consolidation
Proceeds from sales of shares of subsidiaries resulting inchange in the 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 minority interests inconjunction with establishment of consolidated subsidiary
Repayment to non-controlling interests
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

14

Amount(10,969)50(88)(2,521)
395
78
(22)
(590)
128

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

-

339

-

(469)

770

-

(68)
(12,838)

196(7,702)

11,990(3,400)
2,689
(590)
(476)

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

-

183

(525)
9,686

10,545

(4)

(28)

4,141
24,11728,259(6,056)28,25922,202

(5) Notes on Consolidated Financial Statements(Note on the Going-concern Assumption)
Not applicable(Changes in Significant Subsidiaries for Fiscal 2020)
The Company acquired the shares of Gloria Bridal Japan, Inc. (“Global Bridal”) and of its 2 subsidiaries inthe third quarter ended September 30, 2020. Accordingly, Global Bridal and its 4 subsidiaries have been
included in the scope of consolidation.
Also, TGU LLC and HNRB QOZB II, LP, newly established subsidiaries, were included in the scope of
consolidation in the third quarter ended September 30, 2020.
(Changes in Method of Presentation)(Consolidated Statements of Income)“Subsidy income,” which was included under “Other” of “Non-operating income” and which amounted to
0 million yen in the previous fiscal year, has exceeded 10% of the total amount of “Non-operating
income”. Accordingly, it has been reclassified under a separate and independent heading from thecurrent fiscal year.
“Dividend income”, which was presented under a separate and independent heading under “Nonoperating income” and which amounted to 5 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.
(Consolidated Statements of Cash Flows)“Increase (decrease) in allowance for loss on shop closing”, “ Share of loss (profit) of entities accounted
for using equity method”, and “(Gain) loss on investments in securities”, which were included in “Other”
under “Cash flows from operating activities” and which amounted to minus 20 million yen, 47 million yen,and minus 39 million yen, respectively, in the previous fiscal year, have increased their monetary
materiality. Accordingly, they have each been reclassified under separate and independent headings
from the current fiscal year.
(Additional Information)
A second state of emergency is currently in place, and it is difficult to predict at this time when the novel
coronavirus outbreak will be contained. However, the media and other sources are predicting that vaccinationof individuals will commence in early spring and is expected to be steadily expanded in the second half of thisyear.
The Group has made accounting estimates including judgments on the recoverability of deferred tax assets
and the impairment of fixed assets, on the assumption that the number of customers and orders received in
the wedding business and the occupancy rate of the hotel business will gradually recover from around April
when vaccinations of individuals commence.
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.

15

(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 theaccounting 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.

16

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

Year ended December 31, 2019 (January 1 to December 31, 2019)(millions of yen)

Reportable segment
Amountrecorded on

WeddingbusinessHotelbusiness

W&R
business

Total

Adjustments(note 1)

consolidated
financialstatements(note 2)

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

39,414

17,768

3,939

61,121-

61,121

1,630

348

17

1,997

(1,997)-41,045

18,117

3,956

63,119(1,997)

61,121

Segment income (loss)

7,797

477

(229)

8,045

(1,661)

6,383

Segment assets

34,33432,2804,804

71,42027,92399,343

1,623
0

1,089
128

286
138

2,998
267

141
-

3,140
267

1,906

9,436

237

11,58063

11,643

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

Notes: 1. Details of adjustments are as follows:(1) The minus 1,661 million yen adjustment for segment income or loss includes 128 million yen elimination of intersegment sales and minus 1,790 million yen of unallocated corporate expenses. The main component of these
unallocated corporate expenses is general and administrative expenses that are not attributable to reportablesegments.
(2) The 27,923 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 141 million yen adjustment for depreciation/amortization comprises depreciation/amortization for unallocatedcorporate assets.
(4) The 63 million yen adjustment for increase in tangible and intangible assets comprises investments in unallocatedcorporate assets.
2. Segment income or segment loss is adjusted to correspond with operating income reported on the consolidated
statements of income.

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

Reportable segment
Amountrecorded on

WeddingbusinessHotelbusiness

W&R
business

Total

Adjustments(note 1)

consolidated
financialstatements(note 2)

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

16,527

7,958

2,629

27,114-

27,114

823

196

13

1,033

(1,033)-

Total

17,350

8,155

2,642

28,148(1,033)

27,114

Segment loss

(3,667)(5,393)(678)(9,739)(1,736)(11,476)

Segment assets

29,751

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

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 loss is adjusted to correspond with operating loss reported on the consolidated statements of income.

18

(Per Share Information)
Year ended December 31, 2019Year ended December 31, 2020
Net assets per share
784.15 yen
550.65 yen
Profit (loss) per share
53.78 yen(222.82) yen
Notes: 1. Diluted profit per share for fiscal 2019 is not disclosed as there were no dilutive shares. Diluted
profit per share for fiscal 2020 is not disclosed as a loss per share was recorded and there were
no dilutive shares.
2. The calculation base for profit (loss) per share is as follows:Year ended
December 31, 2019Year ended
December 31, 2020

2,565

(10,628)

-

-

2,565

(10,628)

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 applicable194. Other Information(1) Changes in Officers
Not applicable(2) Weddings Held and Orders Received
1) Number of weddings held
Year ended December 31, 2019Year ended December 31, 2020

Number of weddings held (cases)
12,385

Number of weddings held (cases)
5,044

Hotel business

1,611

717

Total

13,996

5,761

Year ended December 31, 2019Year ended December 31, 2020

Segment
Wedding business2) Wedding orders received

Segment
Wedding business
Hotel business
Total

Orders received

Order backlog

Orders received

Order backlog(cases)11,784(cases)6,518(cases)4,864(cases)
6,338

1,463

1,031

864

1,178

13,247

7,549

5,728

7,516

20