TSUKADA GLOBAL : 〔Delayed〕Tsukada Global Holdings Inc.Consolidated Earnings Report for the Six Months ended June 30, 2023(Japanese GAAP)

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

August 9, 2023

Tsukada Global Holdings Inc.

Consolidated Earnings Report for the Six Months ended June 30, 2023 (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 10, 2023
Dividend payout:	September 4, 2023

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, 2023 (January 1, 2023 - June 30, 2023)

(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	%
	26,842	19.1	1,418	-	2,165	61.8	2,036	-
	June 30, 2023
	Six months ended	22,539	71.7	(349)	-	1,338	-	2	-
	June 30, 2022
	Note: Comprehensive income: Six months ended June 30, 2023: 1,988 million yen (111.2%)
		Six months ended June 30, 2022: 941 million yen (- %)
		Profit		Diluted profit
		per share	per share
		yen		yen
	Six months ended		42.70			-
	June 30, 2023
	Six months ended		0.05			-
	June 30, 2022
(2) Consolidated Financial Position
		Total assets	Net assets	Equity ratio
		million yen	million yen		%
	June 30, 2023		86,105			24,835		28.6
	December 31, 2022		87,472			23,086		26.1
	Reference: Total equity: June 30, 2023:	24,597 million yen

December 31, 2022: 22,866 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		-			5.00		5.00
December 31, 2022
Year ending	-		5.00
December 31, 2023
Year ending					-			5.00		10.00
December 31, 2023
(Forecast)

Note: No revision has been made to the latest dividends 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
		million yen	%	million yen	%	million yen	%	million yen	%	yen
	Year ending	58,300	12.8	4,738	59.2	4,771	0.3	3,950	163.6	82.81
	December 31, 2023
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, 2023	December 31, 2022
	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, 2023	June 30, 2022
	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, 2023" in the section "1. Review of Consolidated Financial Results" on page 4 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, 2023	4
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
(Segment Information)	12
(Revenue Recognition)	13
3. Supplementary Information	14
(Weddings Held and Orders Received)	14

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, 2023, the Japanese economy as a whole was on a moderate recovery due to the impact of the reclassification of COVID-19 to Class 5, while the effects of various government policies became apparent, including a pickup in consumer spending and private-sector capital expenditures. However, the outlook remains uncertain due to supply chain disruptions caused by heightened geopolitical risks and soaring energy and raw material costs.

Amidst 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 on accurately responding to diversifying customer needs, and thereby strived to expand net sales and to improve profitability.

In the Hotel business, the number of domestic travelers rose as a result of the reclassification of COVID-19 to Class 5. And thanks to the lifting of travel restrictions, the number of foreign visitors to Japan exceeded 2 million (Japan National Tourism Organization, "Number of Foreign Visitors to Japan (June 2023 estimate)"), a recovery to 72.0% of the figure for June 2019. These factors led to an upturn in the overnight occupancy rate and average charge per night, which remained stable. In addition, the number of weddings held in the Wedding business and the Hotel business is returning to normal, as postponements due to COVID-19, which had been frequent until last year, have largely disappeared. However, the outlook is difficult to predict, as the recovery in the spend per wedding stalled due to the increase in the number of small weddings.

As a result, in the first six months of fiscal 2023, the Group posted consolidated net sales of ¥26,842 million (up 19.1% year on year) and operating income was ¥1,418 million (compared with a loss of ¥349 million a year earlier). Due to foreign exchange gains of ¥789 million recorded in non-operating income, ordinary income was ¥2,165 million (up 61.8% year on year), and profit attributable to owners of the parent was ¥2,036 million (compared with ¥2 million a year earlier).

The results for each business segment were as follows.

1) Wedding business

In the first six months of fiscal 2023, the number of weddings held rose slightly to 4,899 (up 1.3% year on year), and net sales in the Wedding business also increased modestly year on year. However, there was stagnation in the recovery in the spend per wedding due to an increase in the number of small weddings, and such circumstances led to a decline in profitability and thus segment profit decreased year on year though still recorded a profit.

As a result, net sales in the Wedding business totaled ¥16,067 million (up 6.6% year on year) and segment profit was ¥1,664 million (down 19.6%).

2) Hotel business

The number of hotel weddings held climbed slightly to 791 (up 1.7%) in the first six months of fiscal 2023. The overnight occupancy rate and average charge per night remained firm due to an increase in the number of domestic travelers and the number of foreign visitors to Japan. Inbound tourism related-demand, which had declined sharply, is gradually recovering.

2