TSUKADA GLOBAL : 〔Delayed〕Tsukada Global Holdings Inc.Consolidated Earnings Report for the Fiscal Year ended December 31, 2022(Japanese GAAP)

〔Delayed〕The original disclosure in Japanese was released on February 14, 2023 at 15:00 (GMT+9)

February 14, 2023

Tsukada Global Holdings Inc.

Consolidated Earnings Report for the Fiscal Year ended December 31, 2022 (Japanese GAAP)

Stock listing: Tokyo Stock Exchange (Prime Market)	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, 2023
Filing of statutory year-end financial report:	March 30, 2023
Dividend payout:	March 31, 2023

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, 2022 (January 1, 2022 - December 31, 2022)

(1) Consolidated Operating Results						(Percentages indicate year-on-year changes)
		Net sales			Operating income		Ordinary income	Profit attributable to
					owners of the parent
	Year ended	million yen	%	million yen	%		million yen	%	million yen	%
	51,699	54.6		2,976		-	4,758	-	1,498	-
	December 31, 2022
	Year ended	33,429	23.3		(6,391)		-	(5,452)	-	(6,137)	-
	December 31, 2021
	Note: Comprehensive income: Year ended December 31, 2022: 2,736 million yen ( - %)
		Year ended December 31, 2021: (5,796) million yen ( - %)
		Profit			Diluted profit		Return on equity	Ordinary income	Operating income
		per share			per share		to total assets	to net sales
	Year ended	yen			yen			%		%	%
	31.42		-			6.9		5.3	5.8
	December 31, 2022
	Year ended	(128.67)		-			(26.3)		(5.7)	(19.1)
	December 31, 2021
	Reference: Equity in (earnings) losses of affiliates:	Year ended December 31, 2022:	(93) million yen
					Year ended December 31, 2021: (178) million yen
(2) Consolidated Financial Position
		Total assets		Net assets		Equity ratio	Net assets per share
		million yen		million yen			%		yen
	December 31, 2022		87,472			23,086		26.1	479.39
	December 31, 2021		90,901			20,641		22.5	428.77
	Reference: Total equity: December 31, 2022:	22,866 million yen
		December 31, 2021: 20,452 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
Year ended	million yen	million yen	million yen	million yen
7,958	2,077	(5,420)	21,149
December 31, 2022
Year ended	(899)	(1,916)	(2,978)	16,451
December 31, 2021

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)
Year ended	yen	yen	yen		yen	yen		million yen	%	%
-	0.00	-		0.00	0.00	-		-	-
December 31, 2021
Year ended	-	0.00	-		5.00	5.00	238		15.9	1.1
December 31, 2022
Year ending
December 31, 2023	-	5.00	-		5.00	10.00				16.3
(Forecast)

3. Earnings Forecast for the Fiscal Year ending December 31, 2023

	(January 1, 2023 - December 31, 2023)			(Percentages indicate year-on-year changes)
		Net sales		Operating income	Ordinary income	Profit attributable to	Profit
			owners of the parent	per share
	Six months ending	million yen	%	million yen	%	million yen	%	million yen	%	yen
	26,490	17.5	786	-	614	(54.1)	293	-	6.14
	June 30, 2023
	Year ending	57,990	12.2	4,508	51.5	4,171	(12.3)	2,927	95.3	61.36
	December 31, 2023
*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.: Yes
   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, 2022	December 31, 2021
	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	1,259,834	1,259,834
	period
		Year ended	Year ended
		December 31, 2022	December 31, 2021
	3) Average number of shares outstanding during	47,700,166	47,700,166
	the period

• 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, 2023" in the section "1. Review of Consolidated Financial Results" on page 2 in the accompanying materials.

(Presentation Handout Materials)

The Company has scheduled an earnings presentation targeted at institutional investors and analysts on February 20, 2023.

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, 2023	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	9
(3) Consolidated Statements of Changes in Net Assets	10
(4) Consolidated Statements of Cash Flows	12
(5) Notes on Consolidated Financial Statements	14
(Note on the Going-concern Assumption)	14
(Changes in Accounting Policies)	14
(Segment Information)	16
(Revenue Recognition)	19
(Per Share Information)	19
(Significant Subsequent Events)	19
4. Other Information	20
(1) Changes in Officers	20
(2) Weddings Held and Orders Received	20

1

1. Review of Consolidated Financial Results

1. Operating Results

In the fiscal year ended December 31, 2022, the Japanese economy has been transitioning from the lifting of priority measures to prevent the spread of COVID-19 infections to a new stage of living with COVID-19, and there are expectations that it will recover thanks to a recent shift in policies. However, the outlook remains uncertain due to supply chain disruptions caused by heightened geopolitical risks, soaring logistics costs, and rising prices for raw materials and energy.

In this environment, the Tsukada Global Holdings Group ("the Group") focused on creating new value, developing high-quality and attractive outlets, providing high value-added services in the bridal, hotel, and wellness and relaxation (W&R) markets, and taking all possible measures to prevent coronavirus infections at all of its facilities.

The number of weddings held in the Hotel and Wedding businesses, overnight occupancy rates, and average charge per night in the Hotel business have been on a slow recovery trend as travel restrictions were eased, and spend per wedding was also expected to recover. However, the recovery stalled after the number of new COVID-19 cases began rising again in July, and the outlook remains clouded.

As a result, in the fiscal year ended December 31, 2022, the Group posted consolidated net sales of ¥51,699 million (up 54.6% year on year). The Group recorded operating income of ¥2,976 million (compared with a loss of ¥6,391 million a year earlier), ordinary income of ¥4,758 million (compared with a loss of ¥5,452 million a year earlier) due to the receipt of various subsidies and foreign exchange gains from the sharp deterioration of the yen, and net income attributable to owners of the parent of ¥1,498 million (compared with a loss of ¥6,137 million a year earlier) due to an increase in tax expenses.

The results for each business segment were as follows.

1) Wedding business

In fiscal 2022, the number of weddings increased sharply to 10,837 (up 53.0% year on year) due to a steady recovery trend after the lifting of priority measures to prevent the spread of COVID-19 infections in March. Spend per wedding was slow to recover, but the segment posted a profit.

As a result, net sales in the Wedding business totaled ¥34,182 million (up 69.5% year on year) and segment profit was ¥6,154 million (compared with a segment loss of ¥715 million a year earlier).

2) Hotel business

The number of hotel weddings held increased sharply to 1,660 (up 31.9% year on year). Overnight occupancy rates and average charge per night are also recovering slowly as domestic customers and business demand gradually begins to return. However, recovery of demand from inbound tourists was limited, and the segment posted a loss.

As a result, net sales in the Hotel business totaled ¥14,554 million (up 38.3% year on year) and segment loss was ¥1,441 million (compared with a loss of ¥3,780 million a year earlier).

2