May 14, 2012

Best Bridal Inc.
Consolidated Earnings Report for the Three Months ended March 31, 2012
(Japanese GAAP)
Stock listing: Tokyo Stock Exchange (First Section)
URL: http://www.bestbridal.co.jp/english/
Representative: Masayuki Tsukada, President and CEO
Information contact: Keiji Ishihara, Director
Scheduled dates:
Filing of statutory quarterly financial report (sihanki hokokusho):Securities code: 2418

Dividend payout:
Supplementary materials to quarterly financial results available: No
Quarterly earnings presentation held: No-

Tel: +81-3-5464-0081
May 14, 2012

(Amounts rounded down to the nearest million yen)

1. Consolidated Performance for the Three Months ended March 31, 2012
(January 1, 2012 – March 31, 2012)(1) Consolidated Operating Results
Net sales
million yen
Three months ended
March 31, 2012
Three months ended
March 31, 2011
Note: Comprehensive income:(percentages indicate year-on-year changes)%

Operating income
million yen%

Ordinary income
million yen%

Net income
million yen
%

8,769

7.9

345

543.9

434

389.8

83

-

8,124

10.4

53

(94.4)

88(90.8)(430)-

Three months ended March 31, 2012:
Three months ended March 31, 2011:

Net income per shareyen
Three months ended
March 31, 2012
Three months ended
March 31, 2011

175 million yen (- %)(372) million yen (- %)Diluted net income per
share
yen

342.46-(1,759.04)-(2) Consolidated Financial Position

March 31, 2012

Total assets
million yen
46,41247,382
December 31, 2011
Reference: Shareholders’ equity: March 31, 2012:
December 31, 2011:

Net assets
million yen

Shareholders’ equity ratio%
17,75638.3

17,82517,756 million yen
17,825 million yen

1

37.6

2. Dividends
End-Q1yen

End-Q2yenYear ended
1,000.00
December 31, 2011
Year ending
December 31, 2012
Year ending
1,000.00
December 31, 2012
(Forecast)
Note: No revision has been made to the latest dividends forecast.

Dividend per share
End-Q3yen

Year-endyen

Annual total
yen-

1,000.00

2,000.00-

1,000.00

2,000.00

3. Earnings Forecast for the Fiscal Year ending December 31, 2012
(January 1, 2012 – December 31, 2012)(Percentages indicate year-on-year changes)
Net income per
Net sales
million yen%

Operating income
million yen%

For the six months ending
19,600
5.0
2,300
22.2
June 30, 2012
For the year ending
43,100
3.3
7,050
10.2
December 31, 2012
Note: No revision has been made to the latest earnings forecast.

Ordinary income
million yen
%

share
yen

Net income
million yen
%

2,200

18.8

1,150

108.6

4,697.71

6,900

10.9

3,850

44.2

15,727.12

4. Other Information(1) Changes affecting the consolidation status of significant subsidiaries during the period: None
(2) Use of accounting methods specific to preparation of quarterly consolidated financial statements: Yes*For details see, “Application of Specific Accounting Methods for the Preparation of Quarterly Financial

Statements” on page 6(3) Changes in accounting policy, changes in accounting estimates, and retrospective restatement
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
(4) Shares issued (common stock)
March 31, 2012
1) Number of shares issued at end of period (including
treasury stock)2) Number of shares held in treasury at end of period

3) Average number of shares outstanding during theperiod* Quarterly Review Status
2

244,800

December 31, 2011
244,800

Three months ended Three months ended
March 31, 2012
March 31, 2011
244,800

244,800

This report is exempt from the review requirements of Japan’s Financial Instruments and Exchange Act. As of thisreport publication, a review of the consolidated quarterly financial statements in accordance with the Act isunderway.

*Appropriate Use of Earnings Forecast and Other Important Information• The above forecasts are based on information available as of this report’s publication. 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 "Earnings Forecast
for the Fiscal Year Ending December 31, 2012" on page 5 in the accompanying materials.

3

Accompanying Material – Contents
1. Review of Consolidated Financial Results(1) Operating Results(2) Financial Condition(2) Earnings Forecast
2. Other Information(1) Changes in Significant Subsidiaries(2) Application of Specific Accounting Methods for the Preparation of Quarterly Financial
Statements(3) Changes in accounting policy, changes in accounting estimates, and retrospective
restatement(4) Additional information
3. Consolidated Financial Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive
IncomeConsolidated Statements of Income
Consolidated Statements of Comprehensive Income(3) Note on the Going-concern Assumption(4) Segment Information(5) Note on Significant Changes in the Amount of Shareholders’ Equity
4. Supplementary Information

4

5
5
5
5
5
5
6
6
6
7
7-8
9
9
10
11
11-12
12
13

1. Review of Consolidated Financial Results(1) Operating Results
In the first three months of the fiscal year ending December 31, 2012, although severe
economic conditions persisted in Japan due to a global economic slowdown stemming from
Europe’s fiscal instability and damage from the flooding in Thailand, there were signs of a
gradual recovery amid an improvement in the protracted yen appreciation and an upturn inreconstruction-led internal demand. The future outlook for the Japanese economy remained
clouded, however, due to nuclear power issues and soaring oil prices.
In this environment, the Best Bridal Group endeavored to increase sales and profitability bycontinually creating new value in the guest house and wedding business through high-quality,
appealing outlets and value-added services, and by taking proactive efforts to enhancebusiness efficiency.
As a result of the above factors, the Group posted consolidated net sales of ¥8,769 million in
the first quarter, an increase of 7.9% over the same period of the previous fiscal year.
Operating income totaled ¥345 million, a year-on-year increase of 543.9%, ordinary income
amounted to ¥434 million, a year-on-year increase of 389.8%, and net income totaled ¥83
million, compared to a net loss of ¥430 million in the same period of the previous year.
The following are results by business segment.
1. Domestic operations
The addition of Omiya-Rikyu and the consolidation of Hospitality Network Corporation in theprevious fiscal year contributed to higher sales in the domestic business. On an existing-outlet
basis, orders were strong and sales increased over the same period of the previous year.
As a result, net sales in the domestic business totaled ¥8,200 million, an increase of 7.9%
over the same period of the previous year, and the segment’s operating income totaled ¥597
million, a year-on-year increase of 71.3%.
2. Overseas operations
The number of weddings and orders increased in the first quarter compared with the same
period of the previous year as the overall market recovered moderately and the Group
strengthened its sales foundation.
Overseas business net sales totaled ¥569 million, an increase of 8.3% over the same periodof the previous year, and operating income totaled ¥17 million, compared with a loss of ¥15
million in the same period of the previous year.
(2) Financial Condition
Assets, liabilities, and net assets
Assets at the end of the first quarter (March 31, 2012) totaled ¥46,412 million, a decline of¥969 million compared with the end of the previous fiscal year due mainly to a decrease of¥756 million in cash and cash equivalents.
Liabilities at the end of the first quarter totaled ¥28,655 million, a decrease of ¥900 million
from the end of the previous fiscal year. This is mainly attributable to a decrease of ¥2,083
million in income taxes payable, which offset a net increase of ¥796 million in long-term debt
and bonds and an increase of ¥381 million in advances received.
Net assets at the end of the first quarter totaled ¥17,756 million, a decrease of ¥68 million
compared with the end of the previous fiscal year. This was due mainly to ¥244 million in
dividends paid from retained earnings and the booking of ¥83 million in quarterly net income.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2012
There is no change to the first-half or full-year consolidated earnings forecasts announced on
February 13, 2012.
2. Other Information(1) Changes in Significant Subsidiaries
5Not applicable.
(2) Application of Specific Accounting Methods for the Preparation of Quarterly Financial
Statements(Simplified accounting methods)
1) Calculation method for depreciation of fixed assets
Depreciation expenses for assets to which the declining-balance method is applied are
calculated by allocating a quarterly proportion of the amount for the full fiscal year.
2) Calculation method for deferred tax assets and deferred tax liabilities
Regarding judgments on the amount of recoverable deferred tax assets, the Company has
determined that there have been no significant changes in the economic environment or
emergence of temporary differences since the end of the previous fiscal year, and therefore thecalculations are based on future earnings forecasts from the previous year and tax planning
methods.
(Special accounting treatments)
Calculation of taxes
The Company calculates tax liabilities by producing a reasonable estimate of the effective tax
rate after applying tax-effect accounting to income before income taxes and minority interests
for the fiscal year, which encompasses the three months ended March 31, 2012, and thenmultiplying income (loss) before income taxes and minority interests by this estimated effective
tax rate. In cases where this estimated effective tax rate cannot be used, however, the statutory
effective tax rate is used.
(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
Not applicable.
(4) Additional Information
Accounting Standard for Accounting Changes and Error Corrections and Guidance on
Accounting Standard for Accounting Changes and Error Corrections
The Company has adopted the “Accounting Standard for Accounting Changes and Error
Corrections” (Accounting Standards Board of Japan (ASBJ) Statement No. 24, issued
December 4, 2009) and “Guidance on Accounting Standard for Accounting Changes and Error
Corrections” (ASBJ Guidance No. 24, issued December 24, 2009) for any accounting changes
or error corrections which occur after the start of the first quarter of the current fiscal year
ending December 31, 2012.

6

3. Consolidated Financial Statements(1) Consolidated Balance Sheets
December 31, 2011
AmountAssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise
Raw materials and supplies
Other
Allowance for doubtful receivables
Total current assets
Fixed assets
Tangible assets
Buildings and structures, net
Land
Other, net
Total fixed assets
Intangible assets
Goodwill
Other, net
Total intangible assets
Investments and other assets
Lease and guarantee deopsits
Other
Total investments and other assets
Total fixed assets
Deferred assets
Total assets

7(millions of yen)March 31, 2012
Amount10,640
273
47
312
1,090
(32)

9,883
261
43
307
1,036
(33)

12,332

11,50016,8674,560
930

16,7404,563
1,021

22,35822,325

1,124
245

1,102
237

1,370

1,340

5,705
5,572

5,772
5,434

11,278

11,20735,00734,87242

39

47,382

46,412

December 31, 2011
AmountLiabilities
Current liabilities
Accounts payable - trade
Short-term debt
Current portion of long-term debt
Current portion of bonds
Income taxes payable
Advances received
Provision for loss on cancellation of rental contract
Other
Total current liabilities
Fixed liabilities
Bonds
Long-term debt
Provision for employees’ retirement benefits
Provision for directors’ retirement benefits
Provision for loss on cancellation of rental contract
Asset retirement obligations
Other
Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gain on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

8(millions of yen)March 31, 2012
Amount

1,966
3,408
640
2,226
1,288
52
2,304

1,893
930
3,455
636
142
1,670
52
2,373

11,886

11,1542,202
12,049
218
374
152
1,048
1,623

1,936
12,138
220
381
139
1,067
1,617

17,66917,501

29,55628,655472
634
16,949472
634
16,78818,056

17,895

(31)

10

(8)

(0)

(190)
(230)

(149)
(138)

17,82517,75647,382

46,412

(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
Three months ended
March 31, 2011

(millions of yen)Three months ended
March 31, 2012

AmountAmountNet sales
Cost of sales

8,124
6,112

8,769
6,320

Gross profit

2,012

2,449

Selling, general and administrative expenses

1,958

2,103

Operating income

53

345

Non-operating income
Interest income
Gain on investments in silent partnership
Foreign exchange gains
Surrender value of insurance
Subsidy income
Other

11
58
17
49
13

14
44
62
49
16

Total non-operating income

150

188

Non-operating expenses
Interest expenses
Loss on earnings of affiliates
Other

85
5
24

81
15
2

Total non-operating expenses

115

99

88

434

0

-

446

-

96

-

Ordinary income
Extraordinary loss
Loss on disposal of fixed assets
Effect of adoption of new accounting standards for asset
retirement obligations
Loss on phased acquisition

544-

Income before income taxes and minority interests

Total extraordinary loss

(455)

434

Income taxes

(24)

350

Income (loss) before minority interests

(430)

83

Net income

(430)

83

9

Consolidated Statements of Comprehensive Income

Income (loss) before minority interests
Other comprehensive income
Net unrealized gain on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments
Share of other comprehensive income of affiliates
accounted for under the equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to minority
interests

10

Three months ended
March 31, 2011

(millions of yen)Three months ended
March 31, 2012

AmountAmount
(430)

83

5

41

20

8

26

31

5

9

58

91

(372)

175

(372)

175

-

-

(3) Note on the Going-concern Assumption
Not applicable(4) Segment Information
I. Three months ended March 31, 2011 (January 1 to March 31, 2011)
1. Net sales and income/loss by reportable segment(millions of yen)
Reportable segment

Amountrecorded on
consolidated

Domestic

Overseas

operations

operations

7,599

525

8,124

-

8,124

1

4

6

(6)

-

7,600

530

8,130

(6)

8,124

348

(15)

332

(279)

53

Total

Adjustments

statements of(note 1)income (note 2)

Net sales
Sales to outside
customers
Inter-segment sales
and transfers
Total
Segment income (loss)

Note: 1. The minus 279 million yen adjustment for segment income (loss) includes 4 million yen elimination ofinter-segment sales and minus 283 million yen of unallocated corporate expenses. The main component ofthese unallocated corporate expenses is SG&A expenses that are not attributable to reportable segments.
2. Segment income (loss) adjustments are based on operating income reported on the quarterly consolidated
statements of income for the corresponding period.

2. Impairment loss on fixed assets or goodwill by reportable segment(Material change in the amount of goodwill)In the domestic operations segment, the Company additionally acquired the shares of Hospitality Network Corp.
and made it a subsidiary during the first quarter ended March 31, 2012. As a result, goodwill increased
1,203 million yen during the first quarter ended March 31, 2012.

II. Three months ended March 31, 2012 (January 1 to March 31, 2012)
1. Net sales and income/loss by reportable segment(millions of yen)
Reportable segment

Amountrecorded on
consolidated

Domestic

Overseas

operations

operations

8,200

569

Total

Adjustments

statements of(note 1)income (note 2)

Net sales
Sales to outside

8,769

11

-

8,769

customers
Inter-segment sales
and transfers
Total
Segment income (loss)

0

0

0

(0)

-

8,201

569

8,770

(0)

8,769

597

17

614

(269)

345

Note: 1. The minus 269 million yen adjustment for segment income includes 3 million yen elimination ofinter-segment sales and minus 273 million yen of unallocated corporate expenses. The main component ofthese unallocated corporate expenses is SG&A expenses that are not attributable to reportable segments.
2. Segment income adjustments are based on operating income reported on the quarterly consolidated
statements of income for the corresponding period.

2. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable(5) Note on Significant Changes in the Amount of Shareholders’ Equity
Not applicable12

4. Supplementary Information
Weddings held, Orders received, and sales volume
1) Number of weddings held

Segment

Three months ended
March 31, 2011

Three months ended
March 31, 2012

Year ended December
31, 2011

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

Domestic operations

1,615

1,812

8,478

Overseas operations

551

588

2,768

Total

2,166

2,400

11,2462) Orders received

Three months ended
March 31, 2011

Three months ended
March 31, 2012

Year ended December
31, 2011

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

receivedbacklog(cases)(cases)(cases)(cases)(cases)(cases)Domestic operations

2,494

6,223

3,163

6,813

8,596

5,462

Overseas operations

799

1,640

939

1,805

2,830

1,454

Total

3,293

7,863

4,102

8,618

11,426

6,916

Segment3) Sales volume

Segment

Three months ended
March 31, 2011

Three months ended
March 31, 2012

Year ended December
31, 2011

AmountAmountAmountDomestic operations

7,599

8,200

38,986

Overseas operations

525

569

2,755

Total

8,124

8,769

41,741

Notes: 1. Inter-segment transactions have been eliminated from the amounts shown above.
2. The above amounts do not include consumption tax.

13