〔Delayed〕The original disclosure in Japanese was released on August 12, 2016 at 15:00 (GMT+9)

August 12, 2016

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Six Months ended June 30, 2016
(Japanese GAAP)
Stock listing: Tokyo Stock Exchange (First Section)
Securities code: 2418
URL: http://www.tsukada-global.holdings
Representative: Masayuki Tsukada, President and CEO
Information contact: Keiji Ishihara, Manager, Finance and Accounting Department
Tel:+81-3-5464-0081
cheduled dates:
Filing of statutory quarterly financial report (sihanki hokokusho): August 12, 2016
Dividend payout: September 5, 2016
Supplementary materials to quarterly financial results available: Yes
Quarterly earnings presentation held: Yes (Targeted at institutional investors and analysts)(Amounts rounded down to the nearest million yen)

1. Consolidated Performance for the Six Months ended June 30, 2016
(January 1, 2016 – June 30, 2016)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)
Profit attributable to

Net sales
million yen%

Ordinary income
million yen%

Operating income
million yen%

Six months ended
25,9104.8
354(77.4)(269)
June 30, 2016
Six months ended
24,7195.1
1,567(20.9)
1,610
June 30, 2015
Note: Comprehensive income: Six months ended June 30, 2016: -1,000 million yen (- %)Six months ended June 30, 2015: 893 million yen (-24.8 %)

-

(389)

-

(21.2)

997(18.8)

Diluted profit
per shareyen

Profitper shareyen
Six months ended
June 30, 2016
Six months ended
June 30, 2015

owners of the parent
million yen%(8.00)

-

20.42

18.23

(2) Consolidated Financial Position
Total assets
million yen
June 30, 2016

81,983

Net assets

Equity ratio

million yen%

31,60380,32731,807
December 31, 2015
Reference: Total equity: June 30, 2016:
30,357 million yen
December 31, 2015: 31,807 million yen
Total equity =Shareholders’ equity plus total accumulated other comprehensive income.

37.0
39.6

2. Dividends
End-Q1yen

End-Q2yen

Dividend per share
End-Q3yen

Year ended
5.00
December 31, 2015
Year ending
5.00
December 31, 2016
Year ending
December 31, 2016
(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, 2016
(January 1, 2016 – December 31, 2016)(Percentages indicate year-on-year changes)

Net sales
million yen%

Operating income
million yen%

Year ending
56,8005.6
4,300(20.3)
December 31, 2016
Note: No revision has been made to the latest dividends forecast.

Ordinary income
million yen%
3,700(31.9)

Profit attributable toProfitowners of the parent
million yen%

per share
yen

2,200

(43.3)*Notes(1) Changes affecting the consolidation status of significant subsidiaries during the period: Yes
Newly consolidated: 2 Subsidiaries (Best Resort LLC and BT KALAKAUA, LLC)
Newly deconsolidated: None
Note: For details, please refer to “(1) Changes in Significant Subsidiaries” in Section “2.
Other Information” on page 4.
(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 4.
(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

45.18

(4) Shares issued (common stock)1) Number of shares issued at end of period(including treasury stock)2) Number of shares held in treasury at end of
period3) Average number of shares outstanding during
the period

June 30, 2016

December 31, 2015

48,960,000

48,960,000

553,934

131,534

Six Months ended
June 30, 2016

Six Months ended
June 30, 2015

48,689,871

48,828,466* 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, 2016” in the section “1. Review of Consolidated Financial Results” onpage 4 in the accompanying materials.

Accompanying Material – Contents
1. Review of Consolidated Financial Results(1) Operating Results(2) Analysis of Financial Condition(3) Earnings Forecast for the Fiscal Year ending December 31, 2016
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) Consolidated Statements of Cash Flows(4) 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
4
4
4
4
4
6
6
8
8
9
10
12
12
12
12
14

1. Review of Consolidated Financial Results(1) Operating Results
In the first six months of the fiscal year ending December 31, 2016, uncertainties continued toweigh on the Japanese economy. While corporate earnings and employment conditions
continued to improve, consumer sentiment deteriorated amid the yen’s rapid rise and an unstable
stock market. In addition, concerns about the impact on the global economy of the United
Kingdom’s vote to exit the European Union added to the uncertainties clouding the domestic
outlook.
Amid this environment, the Tsukada Global Holdings Group endeavored to increase sales andprofitability by continuing its constant effort to create new value in the bridal, hotel, and relaxation
markets and by creating high-quality, appealing outlets and providing high value-added services
that accurately respond to customers’ increasingly individualized and diversifying needs.
As a result of the above efforts, Tsukada Global Holdings Inc. (“the Company”) posted
consolidated net sales of ¥25,910 million in the first six months of the current fiscal year (anincrease of 4.8% from the same period of the previous fiscal year). This positive result largely
reflects the contribution of a newly opened hotel, which offset lower sales at the wedding business,where changes in the market environment continue to depress the number of weddings held andthe average unit price for such events.
Owing to lower sales at the wedding business and an increase in costs related to starting up
new businesses, first-half operating income fell 77.4% year on year to ¥354 million. The
Company posted an ordinary loss of ¥269 million (compared with ordinary income of ¥1,610
million a year earlier), reflecting a sharp rise in non-operating expenses, including a ¥256 million
loss on valuation of derivatives and a foreign exchange loss of ¥539 million owing to the sharp
appreciation of the yen, which resulted in a valuation loss on U.S.-dollar denominated loans
extended by subsidiaries. The net loss attributable to owners of the parent amounted to ¥389
million (compared with net income of ¥997 million a year earlier).
Results for each business segment were as follows. The Company has changed its reportablebusiness segments, starting from the first quarter of current fiscal year. The year-on-yearcomparisons presented below are based on figures for the same period of the previous fiscal year
adjusted for the change in reportable business segments.
1) Wedding businessIn the second quarter of the current fiscal year, wedding business sales fell year on year amid
declines in the number of weddings held and the average unit price for such events both inJapan and overseas. On a brighter note, orders received for guest house weddings in Japan
were strong.
As a result, net sales in the wedding business totaled ¥16,027 million (down 5.0% year onyear), and segment operating income was to ¥1,502 million (down 28.3%).
2) Hotel business
During the second quarter of fiscal 2016, the hotel business was boosted by the contribution
from The Strings Hotel Nagoya, which opened in November 2015 and continues to enjoy
steady increases in the number of weddings held and orders received. Sales at previously
existing hotels were also up year on year, supported by a steady flow of foreign visitors to2

Japan.
As a result, net sales in the hotel business totaled ¥8,512 million (up 33.3% year on year).
Segment operating income totaled ¥181 million (down 0.2%).
3) W&R business (Wellness & relaxation business)
During the second quarter of fiscal 2016, the W&R business opened a new spa
complex—Beauty & Relax SPA-HERBS in May, 2016. However, the temporary closing ofcertain existing salons depressed overall sales.
As a result, net sales in the W&R business totaled ¥1,371 million (down 6.3% year on year).
The segment posted an operating loss of ¥269 million (compared with an income of ¥50 million
a year earlier).
(2) Analysis of Financial Condition
1) Assets, Liabilities, and Net Assets
Total assets at the end of the first half (June 30, 2016) amounted to ¥81,983 million, an increaseof ¥1,656 million from the end of the previous fiscal year (December 31, 2015). The change
reflects a ¥5,707 million increase in tangible fixed assets, which more than offset a ¥2,645
million decline in cash and deposits and a ¥931 million reduction in investment securities.
Liabilities at the end of the first half totaled ¥50,380 million, ¥1,860 million more than at theend of the previous fiscal year. The increase in liabilities is chiefly attributable to a ¥3,155 million
increase in bonds and other debt, as well as a ¥545 million increase in advances received.
Those increases in liabilities outweighed a ¥975 million reduction in other current liabilities andan ¥843 million decrease in income taxes payable.
Net assets at the end of the first half totaled ¥31,603 million, ¥204 million less than at the endof the previous fiscal year. The change mainly reflects a ¥1,245 million increase in
non-controlling interests, a ¥638 million decrease in retained earnings and a ¥425 million
reduction in foreign currency translation adjustments.
2) Cash flow
Cash and cash equivalents (“cash”) at the end of the first half totaled ¥15,218 million, ¥2,645
million less than at the end of the previous fiscal year.
Cash flows and factors behind changes in the cash flows during the six months ended June30, 2016, are explained below.
(Operating Cash Flow)
Cash provided by operating activities totaled ¥1,452 million, an increase of 31.7% from the firsthalf of the previous fiscal year. The main factors were ¥1,724 million in depreciation andamortization, ¥517 million in foreign exchange loss, a ¥551 million increase in advances
received, and ¥1,347 million in income taxes paid.
(Investing Cash Flow)
Cash used in investing activities totaled ¥8,256 million, 254.7% more than used in the first halfof the previous fiscal year. The increase mainly reflects the use of ¥8,958 million for purchase of
tangible assets and ¥300 million for purchase of investment securities, offset slightly by cash
inflows of ¥493 million in proceeds from sales of investment securities, ¥436 million in proceedsfrom redemption of investment securities, and ¥311 million from proceeds from withdrawal ofinvestment in silent partnership.

3

(Financing Cash Flow)
Cash provided by financing activities totaled ¥3,974 million, an increase of 203.2% from the firsthalf of the previous fiscal year. The main cash inflows were ¥3,240 million in net proceeds fromlong-term debt and bonds and ¥1,335 million in proceeds from stock issuance tonon-controlling interests. In addition, ¥307 million was used to finance the purchase of treasury
stock.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2016
Changes to the Company’s forecast for full-year earnings for the fiscal year ending December
31, 2016, based on the results for the first six months of the year were announced in a
corporate news release on August 5, 2016, entitled “Revision of Consolidated Results Forecast
for First Six Months and Full Year, and Recording of Non-operating Expenses (Foreign
Exchange Loss, etc.).” Going forward, changes in the market environment are expected, andthe Company will release any revisions to its earnings forecasts that result from these changes
in a timely manner.
2. Other Information(1) Changes in Significant Subsidiaries
Effective from the second quarter (ended June 30, 2016) of the current financial year, Best Resort
LLC and BT KALAKAUA, LLC have been newly added to the scope of consolidation as theirimportance has increased.
(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
the calculations are based on future earnings forecasts from the previous year and tax planning
methods.
(Special accounting treatments)
Calculation of taxes
The Company calculates tax liabilities by producing a reasonable estimate of the effective tax rate
after applying tax-effect accounting to profit before income taxes for the fiscal year, which
encompasses the second quarter ended June 30, 2016, and then multiplying profit before income
taxes by this estimated effective tax rate. In cases where this estimated effective tax rate cannot
be used, the statutory effective tax rate is used.
(3) Changes in Accounting Policy, Changes in Accounting Estimates, and Retrospective
Restatement

4

(Application of Accounting Standard for Business Combinations, etc.)
Effective from the first quarter ended March 31, 2016 of the current consolidated financial year,“Accounting Standard for Business Combinations” (ASBJ Statement No. 21 of September 13,2013), “Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22
of September 13, 2013), and “Accounting Standard for Business Divestiture” (ASBJ Statement
No.7 of September 13, 2013), etc. have been applied. As a result, differences caused bychange in the Company’s equity in the subsidiaries and affiliates with controlling interests shallnow be adjusted in its capital surplus, and acquisition-related expenses shall now be changed
to be reported as expenses incurred during the consolidated financial year in which said
acquisition takes place. Furthermore, as to business combinations taking place since thebeginning of the first quarter ended March 31, 2016 and onwards, finalization and restatementof the provisional accounting treatment of the amount of the acquisition cost allocation shall now
be changed to be reflected in the relevant quarterly consolidated financial period, where thedate of said business combination actually falls. Additionally, the presentation has beenchanged in the net profit for the period, etc. and also from minority interests to non-controllinginterests. For the sake of reflecting these changes in the said presentation, restatement has
been made in the consolidated financial statements for the first six months of the preceding
financial year ended June 30, 2015, and for the preceding full consolidated financial year ended
December 31, 2015.
In the consolidated statements of cash flows for the first six months ended June 30, 2016, cash
flows related to the purchase or sale of subsidiaries’ or affiliates’ shares not resulting in change
in the scope of consolidation, are stated in the “Cash flows from financing activities.”
The implementation of Accounting Standard for Business Combinations and its related
standards is subject to the transitional treatments stipulated in the provisions of Article 58-2 (4)of Accounting Standard for Business Combinations, Article 44-5 (4) of Accounting Standard forConsolidated Financial Statements and of Article 57-4 (4) of Accounting Standard for Business
Divestitures, and has been and will be under way since the beginning of the first quarter ended
March 31, 2016 of the current financial year and going forward.
The effect of these changes on the financial statements for the first six months ended June 30,
2016 is immaterial.
(Application of Practical Solution on a Change in Depreciation Method due to Tax Reform 2016)
In accordance with the revision to the Corporation Tax Act, the Company and its domestic
consolidated subsidiaries have applied the “Practical Solution on a Change in Depreciation
Method due to Tax Reform 2016” (ASBJ Practical Issues Task Force No.32 of June 17, 2016),
effective from the second quarter ended June 30, 2016, and have changed the depreciation
method for facilities attached to buildings and structures acquired on and after April 1, 2016,
from the declining balance method to the straight line method.
The effect of this change on the financial statements for the first six months ended June 30,
2016 is immaterial.

53. Consolidated Financial Statements(1) Consolidated Balance Sheets
December 31, 2015
AmountAssetsCurrent 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
Total investments and other assets
Total fixed assets
Deferred assets
Total assets

6(millions of yen)
June 30 2016
Amount17,589
879
362
33
569
2,491
(55)
21,87014,943
835
362
101
479
2,421
(55)
19,08921,847
14,854
2,452
39,15423,932
18,4692,458
44,861

2,538
181
2,719

2,404
230
2,635

4,285
8,362
3,836
16,48558,35897
80,327

3,354
8,298
3,635
15,28762,784
109
81,983

December 31, 2015
Amount(millions of yen)
June 30, 2016
Amount

2,258
2,857
724
1,369
1,131
4,492
12,834

2,123
7,211
824
526
1,677
3,517
15,8803,558
5,000
23,227
331
691
2,139
736
35,68548,5194,096
5,000
21,390
351
684
2,329
647
34,49950,380Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

472
634
30,630(88)
31,648472
634
29,991(394)
30,703

Accumulated other comprehensive income
Net unrealized gain on available-for-sale securities
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

(28)
190
(2)
158
31,80780,327

(107)
(235)
(3)
(346)
1,245
31,603
81,983Liabilities
Current liabilities
Accounts payable - trade
Current portion of long-term debt
Current portion of bonds
Income taxes payable
Advances received
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 liabilities7(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income(millions of yen)Six months
Six months
ended June 30,
ended June 30,
2015
2016
AmountAmount24,71925,910Net sales
Cost of sales
16,67818,5748,040
7,336
Gross profit
6,473
6,981
Selling, general and administrative expenses
1,567
354
Operating income
Non-operating income
Interest income
4130
Dividend income
3618Gain on investments in silent partnership
60
74
Gain on redemption of investment securities
122
Foreign exchange gains
21
Other
30
80
Total non-operating income
190326
Non-operating expenses
Interest expenses
112
124
Loss on valuation of derivatives
23
256
Foreign exchange loss
539
Other
10
29
Total non-operating expenses
147
950
1,610
(269)
Ordinary income or (loss)
Extraordinary Income
Gain on sales of fixed assets
10Reversal gains of provisions for directors’ retirement14
benefits
Reversal gains of provisions for shop closing expenses
3
Total extraordinary gain
117
Extraordinary loss
Loss on disposal of fixed assets
348
Shop closing expenses
5
1
Loss on sales of investment securities
117
Provision for loss on liquidation of subsidiaries/affiliates
18
Other
8
Total extraordinary loss
35
167
1,576
(419)
Profit (loss) before income taxes
579(15)
Income taxes
997
(404)
Profit (loss)(15)(Loss) attributable to non-controlling interests
997
(389)
Profit (loss) attributable to owners of the parent

8

Consolidated Statements of Comprehensive Income

Profit (loss)
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 non-controllinginterests

9

Six months
ended June 30,
2015
Amount997(millions of yen)Six months
ended June 30,
2016
Amount
(404)

(60)

(78)

(7)

-

(35)
(0)
(103)
893

(516)
(0)
(596)
(1,000)

893

(894)

-

(106)

(3) Consolidated Statements of Cash Flows(millions of yen)Six months
ended June 30,
2015
AmountCash flows from operating activities
Profit (loss) before income taxes
Depreciation and amortization
Amortization of goodwill
Amortization of bond issuance expenses
Loss on disposal of fixed assets
Loss (gain) on valuation of derivatives
Loss (gain) on redemption of investment securities
Loss (gain) on sales of investment securities
Increase (decrease) in allowance for doubtfulreceivables
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for point cardcertificates
Increase (decrease) in provision for loss on liquidationof subsidiaries and affiliates
Interest and dividend income
Interest expenses
Foreign exchange (gains) losses(Gain) loss on investments in silent partnership(Increase) decrease in notes and accounts receivable trade(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in advances received
Increase (decrease) in other liabilities
Other
Sub totalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

10

Six months
ended June 30,
2016
Amount

1,576
1,288
158
10
3
23
-

(419)
1,724
133
10
48
256
(122)
117

(0)

0

24

20

(10)

(6)

(18)

-

18

-

(78)
112
(33)
(60)

(48)
124
517
(74)

25

23

(53)

21

(262)

(124)

573
(114)
(465)
2,718
71
(113)
(1,573)
1,103

551
(228)
355
2,881
44
(125)
(1,347)
1,452

Cash flows from investing activities
Purchase of tangible assets
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Performance of asset retirement obligations
Additional purchase of subsidiaries’ shares
Proceeds from redemption of investment securities
Proceeds from withdrawal of investment in silent
partnership
Loans receivableCollection of loans receivable
Lease and guarantee deposits
Collection of lease and guarantee deposits
Purchase of long-term prepaid expenses
Other
Net cash provided by (used in) investing activities

Cash flows from financing activities
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds
Payments for redemption of bonds
Purchase of treasury stock
Dividends paid to shareholders
Proceeds from stock issuance to non-controllinginterests
Purchase of subsidiaries’ shares not resulting inchange in scope of consolidation
Other
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
Increase in cash and cash equivalents, resulting fromnew consolidation of a subsidiary
Cash and cash equivalents, end of period

11(1,234)
(40)
(199)
91
(21)
(24)
-

(8,958)
(82)
(300)
493
436

-

311

(5)
5
(965)
66
0
(2,327)

(106)
1
(155)
175
(49)
(23)
(8,256)2,300(1,267)
990
(462)
(244)

4,200
(1,575)
977
(362)
(307)
(244)

-

1,335

-

(44)

(5)
1,310

(4)
3,974

6

(65)

92
17,354(2,895)
17,863-249

17,447

15,218

(4) Notes on the Financial Statements(Note on the Going-concern Assumption)
Not applicable(Note on Significant Changes in the Amount of Shareholders’ Equity)
In accordance with the resolution of the Board of Directors’ meeting of February 16, 2016,
the Company acquired 422,400 shares of its own shares. Consequently, the Company’streasury stock increased by 306 million yen in the second quarter ended June 30, 2016,
totaling 394 million yen of treasury stock as at the end of the first six months ended June30, 2016.
(Segment and Other Information)[Segment Information]
I. Six months ended June 30, 2015 (January 1 to June 30, 2015)
1. Net sales and income/loss by reportable segment(millions of yen)

Reportable segment
AmountWeddingbusinessHotelbusiness

W&R
business

Total

Adjustments(note 1)

recorded on
consolidated
statements ofincome (note 2)

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

16,869

6,385

1,463

24,719-24,719

413

115

-

529

(529)

-

Total

17,283

6,501

1,463

25,248(529)

24,719Segment income

2,096

182

50

2,329

(762)

1,567

Notes:

1. Minus 762 million yen adjustments for the segment income include 8 million yen elimination ofinter-segment sales and minus 770 million yen corporate expenses that are not allocated to eachreportable segment. The main component of these unallocated corporate expenses is SG&A
expenses that are not attributable to reportable segments.
2. Segment income adjustments are based on operating income reported on the quarterly
consolidated statements of income for the corresponding period.

2. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable.

12II. Six months ended June 30, 2016 (January 1 to June 30, 2016)
1. Net sales and income/loss by reportable segment(millions of yen)

Reportable segment
AmountWeddingbusinessHotelbusiness

W&R
business

Total

Adjustments(note 1)

recorded on
consolidated
statements ofincome (note 2)

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

16,027

8,512

1,371

25,910-25,910

605

203

-

808

(808)

-

Total

16,632

8,716

1,371

26,719(808)

25,910

Segment income (loss)

1,502

181

(269)

1,415

(1,060)354

Notes:

1. Minus 1,060 million yen adjustments for the segment income or loss include 11 million yen
elimination of inter-segment sales and minus 1,071 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. Change in Reportable Segment(Change in classification of reportable segments)
The Group’s classification of reportable segments used to consist of 4 reportable segments, i.e.
“Domestic wedding business,” “Hotel business,” “Overseas business,” and “W&R business(Wellness & Relaxation business).” Effective from the first quarter of the current fiscal year, however,these 4 segments have been reclassified into the 3 segments of “Wedding business,” “Hotelbusiness,” and “W&R business,” having combined the “Domestic wedding business” with the“Overseas business” into the segment of “Wedding business.”
This is in line with the change in the Group’s organizational structure, aiming at a further growth of
wedding business in the global markets.
The segment information for the first six months of the preceding consolidated fiscal year has been
restated accordingly, reflecting this segment change.

3. Impairment loss on fixed assets or goodwill by reportable segment
Not Applicable.

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

Segment

Six months ended
June 30, 2015

Six months ended
June 30, 2016

Year ended
December 31, 2015

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

5,737

5,269

12,253

Hotel business

563

862

1,271

Total

6,300

6,131

13,524

Wedding businessNote: Classification of reportable segments has been changed since the first three months ended March 31,
2016. The figures for the first six months ended June 30, 2015 and for the full year ended December 31,
2015, have been readjusted to the new reportable segments.

2) Wedding orders received

Segment

Six months ended
June 30, 2015

Six months ended
June 30, 2016

Year ended
December 31, 2015

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

6,547

7,492

6,324

7,071

11,587

6,016

Hotel business

944

1,206

959

1,339

1,688

1,242

Total

7,491

8,698

7,283

8,410

13,275

7,258

Wedding businessNote: Classification of reportable segments has been changed since the first three months ended March 31,
2016. The figures for the first six months ended June 30, 2015 and for the full year ended December 31,
2015, have been readjusted to the new reportable segments.

3) Sales volume

Segment

Six months ended
June 30, 2015

Six months ended
June 30, 2016

Year ended
December 31, 2015

million yen

million yen

million yen

Wedding business

16,86916,02737,071

Hotel business

6,385

8,512

13,778

W&R business

1,463

1,371

2,954

Total

24,71925,91053,804

Notes: 1. Classification of reportable segments has been changed since the first three months ended March 31,
2016. The figures for the first six months ended June 30, 2015 and for the full year ended December 31,
2015, have been readjusted 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.

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