2025.05.19 〔Delayed〕Tsukada Global Holdings Inc.Consolidated Earnings Report for the Three Months ended March 31, 2025(Japanese GAAP)

May 9, 2025

Stock listing: Tokyo Stock Exchange Securities code: 2418 URL: https://www.tsukada-global.holdings/en/

Representative: Masayuki Tsukada, President and CEO

Information contact: Masahiro Yamasaki, Manager, Finance &

Accounting Department

(TEL) 03-5464-0081

Dividend payout: -

Supplementary materials to financial results available: No Earnings presentation held: No

(Amounts rounded down to the nearest million yen)

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	%
   Three months ended March 31, 2025	15,842	18.0	1,301	74.1	532	(60.3)	275	(72.4)
   Three months ended March 31, 2024	13,428	9.6	747	-	1,342	-	1,000	-

   Note: Comprehensive income: Three months ended March 31, 2025: (360) million yen (- %)

   Three months ended March 31, 2024: 1,183 million yen (- %)

   	Profit per share	Diluted profit per share
   	yen	yen
   Three months ended	5.80	-
   March 31, 2025
   Three months ended	20.98	-
   March 31, 2024

2. Consolidated Financial Position

Note: No revision has been made to the latest dividends forecast.

1. Earnings Forecast for the Fiscal Year Ending December 31, 2025 (January 1, 2025 - December 31, 2025)

   (Percentages indicate year-on-year changes)

   	Net sales		Operating income		Ordinary	income	Profit attributable to owners of the parent		Profit per share
   	million yen	%	million yen	%	million yen	%	million yen	%	yen
   Six months ending June 30, 2025	33,778	18.3	3,086	32.4	2,527	(23.2)	1,596	(47.4)	33.47
   Year ending December 31, 2025	70,954	11.7	8,800	18.8	7,869	1.9	5,268	2.3	110.45

   Note: No revision has been made to the latest earnings forecast.

   *Notes

   1. Significant changes in the scope of consolidation during the period: None Newly Consolidated: None Newly Deconsolidated: None

   2. Use of accounting methods specific to the preparation of quarterly consolidated financial statements: Yes

      Note: For details, please refer to "(3) 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 8 in the accompanying materials.

   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

   4. Shares issued (common stock)

• Review of the accompanying quarterly consolidated financial statements by a certified public accountant or an auditing firm: None

• 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 "(3) Earnings Forecast for the Fiscal Year Ending December 31, 2025" in the section "1. Review of Consolidated Financial Results" on page 3 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, 2025 3

2. Quarterly Consolidated Financial Statements and Main Notes 4

   1. Consolidated Balance Sheets 4

   2. Consolidated Statements of Income and Comprehensive Income 6

      Consolidated Statements of Income 6

      Consolidated Statements of Comprehensive Income 7

   3. Notes on Quarterly Consolidated Financial Statements 8

      (Note on the Going-concern Assumption) 8

      (Note on Significant Changes in the Amount of Shareholders' Equity) 8

      (Application of Specific Accounting Methods for the Preparation of Quarterly

      Consolidated Financial Statements) 8

      (Special accounting treatments) 8

      (Changes in Accounting Policies) 8

      (Notes on Consolidated Statements of Cash Flows) 9

      (Notes to Segment Information, etc.) 9

      (Revenue Recognition) 10

3. Supplementary Information 11

(Weddings Held and Orders Received) 11

1. ‌Operating Results

   Operating Results and Analysis of Financial Condition

   In the three months ended March 31, 2025, the Japanese economy continued to show a moderate recovery trend, with improvements in corporate earnings, firm capital investment, and consumer sentiment showing signs of recovery due to improvements in the employment and income situation. However, the outlook remains uncertain because of heightened downside risks to the economy due to the impact of U.S. trade policy and other factors, the highly volatile foreign exchange market, and other concerns.

   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 cumulative number of foreign visitors to Japan for 2025 in the quarter through March reached record-high 10 million (up 23.1% from the same quarter of the previous year: Japan National Tourism Organization "2025 Visitor Arrivals & Japanese Overseas Travelers (Preliminary figures in March 2025)"), remaining at a high level. As a result, domestic luxury hotels, including "Hotel InterContinental Tokyo Bay" (Minato-ku, Tokyo), remained stable on the whole. As for "Kaimana Beach Hotel" (Hawaii, U.S.) and "Kimpton Palladian Hotel" (Washington, U.S.), which the Company acquired last year, the Company worked to improve profitability through further cost control. In addition, the Company focused on preparation for the opening of "ANA Holiday Inn Tokyo Bay" (Shinagawa-ku, Tokyo), which will be our fifth facility in Japan.

   In the Wedding businesses, the number of orders received was solid at 3,485 (up 12.3% from the same period of the previous fiscal year), and the spend per wedding, which had been lagging behind, continued to recover moderately. However, due to a lag in the recovery in the number of Japanese traveling overseas in association with the high volatility of the yen/dollar exchange rate, some overseas wedding services continue to face challenging conditions. Moreover, in the W&R business, the closing of unprofitable outlets last year helped stabilize earnings and enabled us to realize a profitable business.

   As a result, in the first three months of fiscal 2025, the Group posted consolidated net sales of

   ¥15,842 million (up 18.0% year on year). The operating income was ¥1,301 million (up 74.1% year on year), and the ordinary income was ¥532 million (down 60.3% year on year) due to foreign exchange losses of ¥560 million recorded in non-operating expenses, which was caused by rapid currency fluctuations. Profit attributable to owners of the parent was ¥275 million (down 72.4% year on year).

   The results for each business segment were as follows.

   1. Wedding business

      In the first three months of fiscal 2025, the number of weddings held slightly increased to 2,028 (up 5.7% year on year), and the spend per wedding moderately recovered. As a result, net sales in the Wedding business increased. In terms of profitability, the recovery in spend per wedding absorbed the rise in energy costs and raw material prices, including purchase and outsourcing costs, resulting in an increase.

      As a result, net sales in the Wedding business totaled ¥8,410 million (up 13.0% year on year) and segment income was ¥980 million (up 83.5% year on year).

   2. Hotel business

      In the first three months of fiscal 2025, the number of hotel weddings held slightly fell to 374 (down 5.3% year on year), but the overnight occupancy rate and average charge per night remained stable due to the impact of record-high numbers of international visitors to Japan.

      As a result, net sales in the Hotel business totaled ¥6,695 million (up 27.5% year on year) and segment income was ¥782 million (up 15.6% year on year).

   3. W&R business

   In the first three months of fiscal 2025, the number of visitors and food and beverage sales of the "Beauty & Relax SPA-HERBS" spa complex reached record highs, which compensated for the decrease in sales of the British-style "Queensway" reflexology salons where the closure of unprofitable outlets was promoted last year. Thanks to this, both net sales and segment income were higher than the previous fiscal year.

   As a result, net sales in the W&R business totaled ¥736 million (up 0.2% year on year) and segment income was ¥54 million (up 224.4% year on year).

2. ‌Analysis of Financial Condition Assets, Liabilities, and Net Assets

   Total assets as of March 31, 2025, the end of the first three months of fiscal 2025, amounted to

   ¥109,979 million, a decrease of ¥1,732 million from the end of the previous fiscal year (December 31, 2024). This was mainly due to a decrease in buildings and structures of ¥938 million and in land of ¥557 million as a result of exchange rate fluctuations and depreciation.

   Total liabilities as of March 31, 2025 came to ¥76,763 million, a decrease of ¥917 million from the end of the previous fiscal year (December 31, 2024). This was mainly due to a decrease of

   ¥903 million in income taxes payable resulting from tax payment and a decrease of ¥392 million in long-term debt (including the current portion) resulting from repayment.

   Total net assets as of March 31, 2025 amounted to ¥33,216 million, a decrease of ¥814 million from the end of the previous fiscal year (December 31, 2024). This was mainly due to a decrease of ¥666 million in foreign currency translation adjustments resulting from currency fluctuations and an increase of ¥167 million in treasury stock as a result of the purchase of treasury stock based on a resolution of the Board of Directors. As a result, the equity ratio was 28.7%, a decrease of 0.2 percentage points from the end of the previous fiscal year (December 31, 2024).

3. ‌Earnings Forecast for the Fiscal Year Ending December 31, 2025

There are no changes to the consolidated results forecast for the first six months and full year of the fiscal year ending December 31, 2025 disclosed in the "Consolidated Earnings Report for the Fiscal Year Ended December 31, 2024 (Japanese GAAP)" dated February 12, 2025.

Actual results may differ significantly depending on various factors going forward. The Company will promptly announce any revisions to these forecasts if such revisions becomes necessary.