〔Delayed〕The original disclosure in Japanese was released on November 11, 2016 at 15:00 (GMT+9)

November 11, 2016

Tsukada Global Holdings Inc.
Consolidated Earnings Report for the Nine Months ended September 30, 2016
(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, Manager, Finance &Tel: +81-3-5464-0081
Accounting Department
Scheduled dates:
Filing of statutory quarterly financial report(shihanki hokokusho): November 14, 2016
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, 2016
(January 1, 2016 – September 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%

owners of the parent
million yen%

Nine months ended
38,8292.5
842(70.3)
273(90.4)
September 30, 2016
Nine months ended
37,875
8.9
2,835
12.2
2,857
6.5
September 30, 2015
Note: Comprehensive income: Nine months ended September 30, 2016: (845) million yen ( - %)Nine months ended September 30, 2015: 1,410 million yen (-13.6 %)Diluted profit
per shareyen

Profitper shareyen
Nine months ended
September 30, 2016
Nine months ended
September 30, 2015

(2.93)

-

37.51

33.48

(2) Consolidated Financial Position

September 30, 2016

Total assets

Net assets

Equity ratio

million yen

million yen%

81,95331,26080,32731,807
December 31, 2015
Reference: Total equity: September 30, 2016: 30,031 million yen
December 31, 2015: 31,807 million yen
Total equity =Shareholders’ equity plus total accumulated other comprehensive income.

36.6
39.6

(141)

-

1,831

15.1

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

Ordinary income

million yen

million yen%

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

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) Application 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

45.63

(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, 2016

December 31, 2015

48,960,000

48,960,000

922,734

131,534

Nine Months ended Nine Months ended
September 30, 2016 September 30, 2015
3) Average number of shares outstanding during
the period

48,212,951

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 3 in the accompanying materials.

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

1. Review of Consolidated Financial Results(1) Operating Results
In the first nine months of the fiscal year ending December 31, 2016, the Japanese economy
displayed a moderate recovery trend, supported by the economic and monetary policies ofgovernment and the Bank of Japan. Nonetheless, the future outlook remains clouded by slower
growth of emerging economies, including China, and by uncertainties in the global economy,
including concerns about the impact of the United Kingdom’s exit from the European Union.
Amid this environment, the Tsukada Global Holdings Group endeavored to increase sales andprofitability by continuing to its constant effort to create new value in the bridal, hotel andrelaxation 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 ¥38,829 million in the first nine months of the current fiscal year (anincrease of 2.5% from the same period of the previous fiscal year). This positive result largely
reflects the contribution of a newly opened hotel, which offset a lower sales at the wedding
business, where changes in the market environment depressed the number of weddings held
and the average unit price for such events.
Owing to the lower sales at the wedding business and an increase in costs related to starting up
new businesses, operating income in the first nine months of 2016 fell 70.3% year on year to¥842 million. Ordinary income totaled ¥273 million, 90.4% less than a year earlier owing to a
sharp rise in non-operating expenses, including a ¥270 million loss on valuation of derivatives anda foreign exchange loss of ¥593 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 came to ¥141 million (compared with net income of ¥1,831
million a year earlier).
Results for each business segment were as follows.
The Company has changed its reportable business segments, starting from the first quarter ofcurrent fiscal year. The year-on-year comparisons presented below are based on figures for thesame period of the previous fiscal year adjusted for the change in reportable business segments.
1) Wedding businessIn the first nine months 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. However, orders received for guest house wedding in Japan were strong.
As a result, net sales in the wedding business totaled ¥24,093 million (down 7.2% year onyear), and segment operating income was to ¥2,565 million (down 29.2%).
2) Hotel business
During the first three quarters 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, with overnight guest occupancy numbers supported
by a steady flow of foreign visitors to Japan.
As a result, net sales in the hotel business reached ¥12,516 million (up 29.7% year on year).

2

Segment operating income totaled ¥101 million (down 58.7%).
3) W&R business (Wellness & relaxation business)
In May 2016, the W&R business opened a new spa complex—Beauty & Relax SPA-HERBS.
However, the temporary closing of certain existing salons depressed overall sales during thefirst three quarters of fiscal 2016.
As a result, net sales in the W&R business totaled ¥2,219 million (down 1.5% year on year).
The segment posted an operating loss of ¥349 million (compared with an income of ¥119
million a year earlier).
(2) Analysis of Financial Condition
Assets, Liabilities, and Net Assets
Total assets at the end of the third quarter (September 30, 2016) amounted to ¥81,953 million,
an increase of ¥1,626 million from the end of the previous fiscal year (December 31, 2015). Thechange reflects a ¥6,631 million increase in tangible fixed assets, which more than offset a¥3,395 million decline in cash and deposits and a ¥1,003 million reduction in investment
securities.
Liabilities at the end of the third quarter totaled ¥50,693 million, an increase of ¥2,173 million
from the end of the previous fiscal year. The increase in liabilities is chiefly attributable to a
¥3,379 million increase in bonds and other debt, as well as a ¥1,100 million increase inadvances received. Those increases in liabilities outweighed a ¥1,507 million reduction in othercurrent liabilities and a ¥970 million decrease in income taxes payable.
Net assets at the end of the third quarter totaled ¥31,260 million, ¥547 million less than at theend of the previous fiscal year. The change mainly reflects a ¥1,228 million increase in
non-controlling interests, a ¥562 million increase in treasury stock, a ¥632 million decrease inretained earnings, and a ¥500 million reduction in foreign currency translation adjustments.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2016
There is no change to the consolidated earnings forecasts for the year ending December 31,
2016, that the Company reported in its second quarter Consolidated Earnings Report dated
August 12, 2016.

3

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, calculations are basedon future earnings forecasts and tax planning made in the preceding consolidated financial year,
in cases where there are no significant changes in the economic environment or emergence oftemporary differences since the end of the previous financial year.
(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 third quarter ended September 30, 2016, and then multiplying profit before
income taxes by this estimated effective tax rate. In cases where this estimated effective tax ratecannot be used, the statutory effective tax rate is used.
(3) Changes in Accounting Policy, Changes in Accounting Estimates, and Retrospective
Restatement(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

4been made in the consolidated financial statements for the first nine months of the preceding
financial year ended September 30, 2015, and for the preceding full consolidated financial year
ended December 31, 2015.
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 nine months ended
September 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 nine months ended September
30, 2016 is immaterial.

5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
Total investments and other assets
Total fixed assets
Deferred assets
Total assets

6

December 31, 2015
Amount(millions of yen)
September 30 2016
Amount17,589
879
362
33
569
2,491
(55)
21,87014,194
774
108
488
2,609
(59)
18,116

21,847
14,854
2,452
39,15423,957
19,3972,429
45,785

2,538
181
2,719

2,338
239
2,577

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

3,282
8,225
3,862
15,37063,733
103
81,953

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

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

2,322
240
7,076
824
399
2,232
2,985
16,0793,558
5,000
23,227
331
691
2,139
736
35,68548,5193,769
5,000
21,836
329
693
2,334
650
34,61450,693

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

472
634
30,630(88)
31,648472
634
29,997(650)
30,453

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)
(310)
(3)
(422)
1,228
31,26081,953Liabilities
Current liabilities
Accounts payable - trade
Short-term debt
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)
Nine months
Nine months
ended September
ended September
30, 2015
30, 2016
AmountAmount37,87538,829Net sales
Cost of sales
25,571
27,72012,304
11,109Gross profit
9,469
10,266
Selling, general and administrative expenses
2,835
842
Operating income
Non-operating income
Interest income
63
39
Dividend income
44
29
Gain on sales of marketable securities
43
Gain on investments in silent partnership
130
152
Gain on redemption of investment securities
122
Other
78
183
Total non-operating income
359
527
Non-operating expenses
Interest expenses
167
182
Loss on valuation of derivatives
66
270
Foreign exchange loss
85
593
Other
18
49
Total non-operating expenses
337
1,096
2,857
273
Ordinary income
Extraordinary Income
Gain on sales of fixed assets
1
1
Reversal gains of provisions for directors’ retirement14
benefits
Reversal gains of provisions for shop closing expenses
4
Total extraordinary income
1
20
Extraordinary loss
Loss on sales of fixed assets
30
Loss on disposal of fixed assets
16
56
Loss on sales of investment securities
117
Provision for loss on liquidation of subsidiaries/affiliates
18
Other
30
2
Total extraordinary loss
95
177
2,762
116
Profit before income taxes
931
267
Income taxes
1,831
(150)
Profit (loss) for the period(9)(Loss) attributable to non-controlling interests
1,831
(141)
Profit (loss) attributable to owners of the parent

8

Consolidated Statements of Comprehensive Income

Profit (loss) for the period
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

Nine months
ended September
30, 2015
Amount
1,831(millions of yen)
Nine months
ended September
30, 2016
Amount
(150)

(253)

(78)

(7)

-

(160)
0
(420)
1,410

(614)
(0)
(694)
(845)

1,410

(721)

-

(123)

(3) 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 791,200 shares of its own shares. Consequently, the Company’streasury stock increased by 562 million yen in the third quarter ended September 30,
2016, totaling 650 million yen of treasury stock as at the end of the first nine months
ended September 30, 2016.
(Segment and Other Information)[Segment Information]
I. 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
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

25,968

9,654

2,253

37,875-37,875

617

184

-

802

(802)

-

Total

26,586

9,838

2,253

38,678(802)

37,875

Segment income

3,623

244

119

3,987

(1,152)

2,835

Notes:

1. Minus 1,152 million yen adjustments for the segment income include 7 million yen elimination ofinter-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. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable.

10II. Nine months ended September 30, 2016 (January 1 to September 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

24,093

12,516

2,219

38,829-38,829

877

301

0

1,178

(1,178)-

Total

24,97012,8172,219

40,008(1,178)38,829Segment income (loss)

2,565

101

(349)

2,317

(1,474)842

Notes:

1. Minus 1,474 million yen adjustments for the segment income or loss include 15 million yen
elimination of inter-segment sales and minus 1,490 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 nine 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.

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

Segment

Nine months ended
September 30, 2015

Nine months ended
September 30, 2016

Year ended
December 31, 2015

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

8,698

7,925

12,253

Hotel business

855

1,262

1,271

Total

9,553

9,187

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 nine months ended September 30, 2015 and for the full year ended December
31, 2015, have been readjusted to the new reportable segments.

2) Wedding orders received

Segment

Nine months ended
September 30, 2015

Nine months ended
September 30, 2016

Year ended
December 31, 2015

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

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

Wedding business

9,145

7,129

9,191

7,282

11,587

6,016

Hotel business

1,301

1,271

1,417

1,397

1,688

1,242

Total

10,446

8,400

10,608

8,679

13,275

7,258

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

3) Sales volume

Segment

Nine months ended
September 30, 2015

Nine months ended
September 30, 2016

Year ended
December 31, 2015

million yen

million yen

million yen

Wedding business

25,96824,09337,071

Hotel business

9,654

12,516

13,778

W&R business

2,253

2,219

2,954

Total

37,87538,82953,804

Notes: 1. Classification of reportable segments has been changed since the first three months ended March 31,
2016. The figures for the first nine months ended September 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.

12