TSUKADA GLOBAL : 〔Delayed〕Tsukada Global Holdings Inc.Consolidated Earnings Report for the Six Months ended June 30, 2022(Japanese GAAP)

〔Delayed〕The original disclosure in Japanese was released on August 10, 2022 at 15:00 (GMT+9)

August 10, 2022

Tsukada Global Holdings Inc.

Consolidated Earnings Report for the Six Months ended June 30, 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:
Filing of statutory quarterly financial report (shihanki hokokusho):	August 12, 2022
Dividend payout:	-

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, 2022 (January 1, 2022 - June 30, 2022)

(1) Consolidated Operating Results				(Percentages indicate year-on-year changes)
		Net sales		Operating income	Ordinary income	Profit attributable to
			owners of the parent
	Six months ended	million yen	%	million yen	%	million yen	%	million yen	%
	22,539	71.7	(349)	-	1,338	-	2	-
	June 30, 2022
	Six months ended	13,126	11.3	(5,518)	-	(5,007)	-	(4,452)	-
	June 30, 2021
	Note: Comprehensive income: Six months ended June 30, 2022: 941 million yen (- %)
		Six months ended June 30, 2021: (4,297) million yen (- %)
		Profit		Diluted profit
		per share	per share
		yen		yen
	Six months ended		0.05			-
	June 30, 2022
	Six months ended		(93.34)			-
	June 30, 2021
(2) Consolidated Financial Position
		Total assets	Net assets	Equity ratio
		million yen	million yen		%
	June 30, 2022		87,758			21,291		24.0
	December 31, 2021		90,901			20,641		22.5
	Reference: Total equity: June 30, 2022:	21,063 million yen
		December 31, 2021:	20,452 million yen

2. Dividends

				Dividend per share
	End-Q1	End-Q2		End-Q3		Year-end	Annual total
	yen	yen		yen		yen	yen
Year ended	-		0.00		-			0.00		0.00
December 31, 2021
Year ending	-		0.00
December 31, 2022
Year ending					-			0.00		0.00
December 31, 2022
(Forecast)

Note: No revision has been made to the latest dividends 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
	Year ending	54,100	61.8	3,500	-	4,800	-	2,280	-	47.80
	December 31, 2022
Note: No revision has been made to the latest earnings forecast.
*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. Use of accounting methods specific to the preparation of quarterly consolidated financial statements: Yes
   Note: For details, please refer to "(4) Notes on Quarterly Consolidated Financial Statements (Application of Specific Accounting Methods for the Preparation of Quarterly Consolidated Financial Statements)" in section "2. Quarterly Consolidated Financial Statements and Main Notes" on page 11 in the accompanying materials.
2. Changes in accounting policy, changes in accounting estimates, and retrospective restatement
3. 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

(4) Shares issued (common stock)	June 30, 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	1,259,834	1,259,834
	of period
		Six Months ended	Six Months ended
		June 30, 2022	June 30, 2021
	3) Average number of shares outstanding	47,700,166	47,700,166
	during the period

• Quarterly earnings reports are exempt from quarterly review conducted by certified public accountants or by audit firms.

*Appropriate Use of Earnings Forecast and Other Important Information (Cautionary Statement with Respect to Forward-LookingStatements)

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 "(3) Earnings Forecast for the Fiscal Year ending December 31, 2022" in the section "1. Review of Consolidated Financial Results" on page 2 in the accompanying materials.

Accompanying Material - Contents
1. Review of Consolidated Financial Results	2
(1) Operating Results	2
(2) Analysis of Financial Condition	3
(3) Earnings Forecast for the Fiscal Year ending December 31, 2022	3
2. Quarterly Consolidated Financial Statements and Main Notes	5
(1) Consolidated Balance Sheets	5
(2) Consolidated Statements of Income and Comprehensive Income	7
Consolidated Statements of Income	7
Consolidated Statements of Comprehensive Income	8
(3) Consolidated Statements of Cash Flows	9
(4) Notes on Quarterly Consolidated Financial Statements	11
(Note on the Going-concern Assumption)	11
(Note on Significant Changes in the Amount of Shareholders' Equity)	11
(Application of Specific Accounting Methods for the Preparation of Quarterly	11
Consolidated Financial Statements)
(Changes in Accounting Policies)	11
(Additional Information)	13
(Segment Information)	14
(Revenue Recognition)	15
3. Supplementary Information	16
(Weddings Held and Orders Received)	16

1

1. Review of Consolidated Financial Results

1. Operating Results
   Operating Results and Analysis of Financial Condition

During the first six months of the fiscal year ending December 31, 2022, the Japanese economy showed signs of recovery, as evidenced by the lifting of priority measures to prevent the spread of COVID-19 infections. But the outlook remains uncertain due to supply chain disruptions caused by heightened geopolitical risks and soaring logistics costs and raw material prices.

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, and spend per wedding was also expected to recover. However, due to the number of new COVID-19 cases rising and falling again in July 2022, the outlook remains clouded.

As a result, in the first six months of 2022, the Group posted consolidated net sales of ¥22,539 million (up 71.7% year on year). The Group recorded an operating loss of ¥349 million (compared with a loss of ¥5,518 million a year earlier), ordinary income of ¥1,388 million yen (compared with a loss of ¥5,007 million yen 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 ¥2 million (compared with a loss of ¥4,452 million a year earlier) due to an increase in tax expenses.

The results for each business segment were as follows.

1) Wedding business

During the first six months of fiscal 2022, a gradual recovery trend began after the priority measures to prevent a resurgence of COVID-19 infections were lifted in March. The number of weddings held increased sharply to 4,834 (up 71.6% year on year), and the segment posted a profit despite the slow recovery of spend per wedding.

As a result, net sales in the Wedding business totaled ¥15,086 million (up 89.7% year on year) and segment profit was ¥2,070 million (compared with a loss of ¥1,793 million a year earlier).

2) Hotel business

The number of hotel weddings held increased sharply to 778 (up 52.5% year on year) in the first six months of fiscal 2022. Overnight occupancy rates and average charge per night also recovered slowly as domestic customers and business demand began to gradually return. However, recovery was limited by the loss of demand from inbound tourists, and the segment posted a loss.

As a result, net sales in the Hotel business totaled ¥6,020 million (up 55.6% year on year) and the segment loss was ¥1,522 million (compared with a ¥2,729 million loss a year earlier).

2