TSUKADA GLOBAL : 〔 Delayed 〕Tsukada Global Holdings Inc.Consolidated Earnings Report for the Fiscal Year ended December 31, 2021(Japanese GAAP)

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

February 14, 2022

Tsukada Global Holdings Inc.

Consolidated Earnings Report for the Fiscal Year ended December 31, 2021 (Japanese GAAP)

Stock listing: Tokyo Stock Exchange (First Section)	Securities code: 2418
URL: https://www.tsukada-global.holdings/en/
Representative: Masayuki Tsukada, President and CEO
Information contact: Masahiro Yamazaki, Manager, Finance &	Tel: [phone]
Accounting Department
Scheduled dates:
Annual general meeting of shareholders:	March 30, 2022
Filing of statutory year-end financial report:	March 30, 2022
Dividend payout:	-

Supplementary materials to year-end financial results available: Yes

Year-end earnings presentation held: Yes (targeted at institutional investors and analysts)

(Amounts rounded down to the nearest million yen)

1. Consolidated Performance for the Fiscal Year ended December 31, 2021 (January 1, 2021 - December 31, 2021)

(1) Consolidated Operating Results							(Percentages indicate year-on-year changes)
		Net sales				Operating income		Ordinary income			Profit attributable to
							owners of the parent
		million yen	%		million yen	%		million yen	%		million yen	%
	Year ended	33,429	23.3	(6,391)	-			(5,452)	-			(6,137)	-
	December 31, 2021
	Year ended	27,114	(55.6)	(11,476)	-		(11,227)	-			(10,628)	-
	December 31, 2020
Note: Comprehensive income: Year ended December 31, 2021:	(5,796) million yen	(-%)
		Year ended December 31, 2020:	(10,911) million yen	(-%)
		Profit			Diluted profit		Return on equity		Ordinary income			Operating income
		per share				per share			to total assets			to net sales
		yen				yen		%			%				%
	Year ended	(128.67)		-			(26.3)			(5.7)			(19.1)
	December 31, 2021
	Year ended	(222.82)		-			(33.4)			(11.3)			(42.3)
	December 31, 2020
Reference: Equity in (earnings) losses of affiliates:		Year ended December 31, 2021:	(178) million yen
						Year ended December 31, 2020:		(81) million yen
(2) Consolidated Financial Position
		Total assets		Net assets			Equity ratio			Net assets per share
		million yen				million yen				%					yen
	December 31, 2021		90,901				20,641					22.5					428.77
	December 31, 2020		99,814				26,437					26.3					550.65
Reference: Total equity: December 31, 2021: 20,452 million yen
		December 31, 2020: 26,265 million yen

(3) Consolidated Cash Flows

	Cash flows from	Cash flows from	Cash flows from	Cash and cash
	equivalents at end of
	operating activities	investing activities	financing activities
	period
	million yen	million yen	million yen	million yen
Year ended	(899)	(1,916)	(2,978)	16,451
December 31, 2021
Year ended	(8,871)	(7,702)	10,545	22,202
December 31, 2020

2. Dividends

		Dividend per share						Dividend		Rate of total
								Total		dividend to
								payout ratio
								dividends		net assets
								(consolidated)
	End-Q1	End-Q2	End-Q3	Year-end	Annual total				(consolidated)
	yen	yen	yen		yen	yen		million yen	%	%
Year ended	-	0.00	-		0.00	0.00	-		-	-
December 31, 2020
Year ended	-	0.00	-		0.00	0.00	-		-	-
December 31, 2021
Year ending
December 31, 2022	-	0.00	-		0.00	0.00				-
(Forecast)

3. Earnings Forecast for the Fiscal Year ending December 31, 2022

(January 1, 2022 - December 31, 2022)				(Percentages indicate year-on-year changes)
		Net sales			Operating income	Ordinary income	Profit attributable to	Profit
				owners of the parent	per share
		million yen	%		million yen	%	million yen	%	million yen	%	yen
	Six months ending	25,210	92.1		(40)	-	(160)	-	(105)	-	(2.20)
	June 30, 2022
	Year ending	60,230	80.2		5,325	-	5,055	-	3,355	-	70.34
	December 31, 2022

*Notes

(1) Changes in significant subsidiaries during the period: None

(Changes in specific subsidiaries accompanying a change in scope of consolidation)

Newly Consolidated: None

Newly Deconsolidated: None

1. Changes in accounting policy, changes in accounting estimates, and retrospective restatement
2. 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)

	December 31, 2021	December 31, 2020
1) Number of shares issued at end of period	48,960,000	48,960,000
(including treasury stock)
2) Number of shares held in treasury at end of period	1,259,834	1,259,834
	Year ended	Year ended
	December 31, 2021	December 31, 2020
3) Average number of shares outstanding during the period	47,700,166	47,700,166

• This Earnings Report is exempt from auditing conducted by certified public accountants or by auditing 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 this report's publication and on certain assumptions that are deemed reasonable. These forecasts are not guarantees of future performance, and actual results may differ from forecasts due to changes in the business environment. For the assumptions underlying the forecasts herein and other notice on the use of earnings forecasts, please refer to "(4) Earnings Forecast for the Fiscal Year ending December 31, 2022" in the section "1. Review of Consolidated Financial Results" on page 4 in the accompanying materials.

(Presentation Handout Materials)

The Company has scheduled an earnings presentation targeted at institutional investors and analysts on February 21, 2022.

The presentation handout materials will be posted on the Company's website immediately after the event.

Accompanying Material - Contents
1. Review of Consolidated Financial Results	2
(1) Operating Results	2
(2) Analysis of Financial Condition	3
(3) Overview of Cash Flows	3
(4) Earnings Forecast for the Fiscal Year ending December 31, 2022	4
2. Basic Views on Adoption of Accounting Standards	5
3. Consolidated Financial Statements and Main Notes	6
(1) Consolidated Balance Sheets	6
(2) Consolidated Statements of Income and Comprehensive Income	8
Consolidated Statements of Income	8
Consolidated Statements of Comprehensive Income	10
(3) Consolidated Statements of Changes in Net Assets	11
(4) Consolidated Statements of Cash Flows	13
(5) Notes on Consolidated Financial Statements	16
(Note on the Going-concern Assumption)	16
(Changes in Method of Presentation)	16
(Additional Information)	16
(Segment Information)	17
(Per Share Information)	20
(Significant Subsequent Events)	20
4. Other Information	21
(1) Changes in Officers	21
(2) Weddings Held and Orders Received	21

1

1. Review of Consolidated Financial Results

(1) Operating Results

During the fiscal year ended December 31, 2021, the outlook for the Japanese economy remained uncertain owing largely to the impact of resurgences of novel coronavirus infections on economic activities and employment conditions, as well as stagnant consumer spending, and the absence of overseas visitors due to travel restrictions.

In this environment, the Tsukada Global Holdings Group ("the Group") focused on creating new value, developing high-quality, appealing outlets, providing high value-added services in the bridal, hotel, and wellness and relaxation (W&R) markets, and implementing thoroughgoing measures to prevent coronavirus infections.

Although the fourth state of emergency declared in response to the resurgence of novel coronavirus infections was lifted on September 30, 2021, it severely impacted the consolidated earnings results in all segments for the current fiscal year. All segments were significantly affected by factors such as the postponement of weddings to the next fiscal year or beyond, the decline in the average number of guests per wedding, the downturn in restaurant customer numbers and hotel occupancy rates due to travel restrictions, and sluggish growth in the number of people reactivating their frozen fitness club memberships. In addition, the current global spread of the Omicron variant continues to make it difficult to predict the future.

As a result, in the fiscal year ended December 31, 2021, the Group posted consolidated net sales of ¥33,429 million (up 23.3% year on year). Although there are signs of a recovery from the previous fiscal year, the Group continued to record significant losses. The Group recorded an operating loss of ¥6,391 million (compared to a loss of ¥11,476 million a year earlier), an ordinary loss of ¥5,452 million (compared to a loss of ¥11,227 million a year earlier) due to the receipt of employment adjustment subsidies and various subsidies for responding to requests for business suspensions and shortening of operating hours. The net loss attributable to owners of the parent was ¥6,137 million (compared to a loss of ¥10,628 million a year earlier).

The results for each business segment were as follows.

1) Wedding business

In fiscal 2021, despite the continued impact of the pandemic, wedding business sales appear to have bottomed out, with the number of weddings held increasing to 7,084 weddings (up 40.4% year on year). However, it recorded losses due to a decline in profitability as a result of a decrease in the average number of guests per wedding.

As a result, net sales in the wedding business came to 20,167 million yen (up 22.0% year on year) and segment loss totaled ¥715 million (compared to a segment loss of ¥3,667 million a year earlier).

2) Hotel business

Segment sales increased in fiscal 2021, owing to the generation of a certain amount of revenue at some hotels during the Tokyo Olympics and an increase in the number of weddings held at the Group's hotels to 1,259 (up 75.6% year on year) despite sluggish demand for corporate banquets, and declines in hotel occupancy and restaurant customer numbers, which were impacted by ongoing restrictions on travel from overseas that have been in place since last year. However, the segment recorded a loss as the overall overnight occupancy rates remained low for hotels, the earnings pillar of the business.

2