August 9, 2012

Best Bridal Inc.
Consolidated Earnings Report for the Six Months ended June 30, 2012
(Japanese GAAP)
Stock listing: Tokyo Stock Exchange (First Section)
Securities code: 2418
URL: http://www.bestbridal.co.jp/english/
Representative: Masayuki Tsukada, President and CEO
Information contact: Keiji Ishihara, Director
Tel: +81-3-5464-0081
Scheduled dates:
Filing of statutory quarterly financial report (sihanki hokokusho): August 13, 2012
Dividend payout:
September 10, 2012
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, 2012
(January 1, 2012 – June 30, 2012)(1) Consolidated Operating Results
Net sales
million yen(percentages indicate year-on-year changes)
Operating income
million yen%

Ordinary income
million yen%%
Six Months ended
20,369
9.1
2,203
17.1
2,204
19.0
June 30, 2012
Six Months ended
18,6738.7
1,882(30.2)
1,852(27.1)
June 30, 2011
Note: Comprehensive income:Six Months ended June 30, 2012: 1,009 million yen (59.7 %)Six Months ended June 30, 2011:
631 million yen(- %)Net income per shareyen

Diluted net income per
share
yen

4,084.01-

2,251.97-

Total assets
million yen
45,875

Net assets
million yen
18,590Six Months ended
June 30, 2012
Six Months ended
June 30, 2011
(2) Consolidated Financial Position

June 30, 2012

47,382
17,825
December 31, 2011
Reference: Total equity: June 30, 2012:
18,590 million yen
December 31, 2011:17,825 million yen
Total equity= Shareholders’ equity plus total accumulated other comprehensive income.

1

Equity ratio
%
40.5
37.6

Net income
million yen
%
999

81.4

551

(59.7)

2. Dividends
End-Q1yen

End-Q2yenYear ended
1,000.00
December 31, 2011
Year ending
1,000.00
December 31, 2012
Year ending
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 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%

Net income
million yen
%

6,900

3,850

10.9

share
yen

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 the 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)June 30, 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 theperiod2

December 31, 2011

244,800

244,800--

Six months ended
June 30, 2012

Six months ended
June 30, 2011

244,800

244,800

* Quarterly Review Status
This report is exempt from the review requirements of Japan’s Financial Instruments and Exchange Act. Asof this report publication, a review of the consolidated quarterly financial statements in accordance with the
Act is underway.
*Appropriate Use of Earnings Forecast and Other Important Information• The above forecasts are based on information available as of this report’s publication. Best Bridal
makes no assurances as to the actual results, which may differ from forecasts due to changes inthe business environment. For the assumptions underlying the forecasts herein and other noticeon the use of earnings forecasts, please refer to "Earnings Forecast for the Fiscal Year Ending
December 31, 2012" on page 6 in the accompanying material.

3

Accompanying Material – Contents
1. Review of Consolidated Financial Results(1) Operating Results(2) Financial Condition(2) Earnings Forecast for the Fiscal Year Ending December 31, 2012
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 Comprehensive Income
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income(3) Consolidated Statements of Cash Flows(4) Note on the Going-concern Assumption(5) Note on Significant Changes in the Amount of Shareholders’ Equity(6) Segment Information
4. Supplementary Information

4

5
5
5
6
6
6
6
6
6
7
7-8
9
9
10
11-12
13
13
13-14
15

1. Review of Consolidated Financial Results(1) Operating Results
In the first six months of the fiscal year ending December 31, 2012 (January 1, 2012 – June 30,2012), the Japanese economy showed signs of recovery from the standstill caused by the Great
East Japan Earthquake, with reconstruction-related demand providing the main stimulus. The
overall economic outlook remains clouded, however, due to the deterioration of the export
environment as a result of the European debt crisis and prolonged yen appreciation, as well as theeffect of restrictions on power supplies and the long-term deflationary economic environment.
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 enhance businessefficiency.
As a result of the above factors, the Group posted consolidated net sales of ¥20,369 million in
the six months ended June 30, 2012, an increase of 9.1% over the same period of the previous
fiscal year. Operating income totaled ¥2,203 million, a year-on-year increase of 17.1%, ordinary
income totaled ¥2,204 million, a year-on-year increase of 19.0%, and net income totaled ¥999
million, an increase of 81.4% compared with the same period of the previous fiscal 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, weddings and orders increased steadily over the same period of the previous fiscal year.
As a result, net sales in the domestic business for the six months ended June 30, 2012 totaled¥19,011 million, an increase of 9.4% over the same period of the previous fiscal year, and thesegment’s operating income totaled ¥2,858 million, a year-on-year increase of 20.9%.
2. Overseas operations
The number of weddings and orders increased in the six months ended June 30, 2012 comparedwith the same period of the previous fiscal year as the overall market showed a moderate
recovery and the Group strengthened its sales foundation.
As a result, overseas business net sales for the six-month period totaled ¥1,358 million, an
increase of 4.6% over the same period of the previous fiscal year, and operating income totaled¥106 million, an increase of 83.3% over same period of the previous fiscal year.
(2) Financial Condition
1) Assets, liabilities, and net assets
Assets at the end of the second quarter (June 30, 2012) totaled ¥45,875 million, a decline of¥1,506 million compared with the end of the previous fiscal year due mainly to a decrease of¥1,130 million in cash and cash equivalents.
Liabilities at the end of the second quarter totaled ¥27,285 million, a decrease of ¥2,271 million
from the end of the previous fiscal year. This was mainly attributable to a net decrease of ¥1,093
million in long-term debt and bonds and a decrease of ¥1,228 million in income taxes payable.
Net assets at the end of the second quarter totaled ¥18,590 million, an increase of ¥764 million
compared with the end of the previous fiscal year. The main factors were ¥244 million in dividends
paid from retained earnings and the booking of ¥999 million in net income.
2) Cash Flow
Cash and cash equivalents (“cash”) at the end of the second quarter declined by ¥1,130 million
from the end of the previous fiscal year to ¥9,401 million. Cash flows and factors behind changes
in the cash flows during the six months ended June 30, 2012 are explained below.
(Operating Cash Flow)5

Cash generated from operating activities totaled ¥900 million, an increase of 762.8% from thesame period of the previous fiscal year. The main factors were ¥2,202 million in income before
income taxes and minority interests and ¥1,194 million in depreciation expenses, the sum of which
was partially offset by ¥2,449 million in income taxes paid.
(Investing Cash Flow)
Cash used in investing activities totaled ¥703 million, a decrease of 71.7% from the same period of
the previous fiscal year, as outflows such as ¥983 million for the purchase of property, plant, andequipment outweighed inflows such as ¥317 million from the sale of investment securities.
(Financing Cash Flow)
Cash used in financing activities totaled ¥1,323 million, compared with ¥2,469 million in cash
provided in the same period of the previous fiscal year. There was a net decrease of ¥1,073 million
in debt and bonds and an outflow of ¥244 million for the payment of dividends.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2012
There is no change to the full-year consolidated earnings forecasts announced on February 13,
2012.
2. Other Information(1) Changes in Significant Subsidiaries
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 byallocating 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 determinedthat 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 the calculations are based on future
earnings forecasts and tax planning methods from the previous year.

(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 six months ended June 30, 2012, and then multiplying 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 Policy, Changes in Accounting Estimates, and Retrospective
Restatement
Not applicable.
(4) Additional Information
Accounting Standard for Accounting Changes and Error Corrections and Guidance on AccountingStandard 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 on or after the start of the first quarter of the fiscal year ending December 31, 2012.
6

3. Consolidated Financial Statements(1) Consolidated Balance Sheets

AssetsCurrent 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 tangible 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

December 31, 2011
Amount(millions of yen)
June 30, 2012
Amount10,640
273
47
312
1,090
(32)
12,332

9,510
309
40
298
1,263
(40)
11,381

16,8674,560
930
22,35816,396
4,752
1,067
22,216

1,124
245
1,370

1,082
234
1,317

5,705
5,572
11,27835,00742
47,382

5,750
5,172
10,922
34,45637
45,875

December 31, 2011
Amount(millions of yen)
June 30, 2012
AmountLiabilities
Current liabilities
Accounts payable - trade
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

1,966
3,408
640
2,226
1,288
52
2,304
11,886

1,941
3,338
636
998
1,331
52
2,129
10,426

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

2,202
12,049
218
374
152
1,048
1,623
17,66929,556

1,886
11,345
230
574
126
1,071
1,623
16,85827,285472
634
16,94918,056472
634
17,704
18,811

(31)

(13)

(8)

(9)

(190)
(230)
17,82547,382(198)(220)
18,59045,875

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 assets8(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Gain on investments in silent partnership
Foreign exchange gains
Surrender value of insurance
Equity in gains of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
Gain on sales of business
Reversal of provision for employees’ retirement
benefits
Reversal of provision for shop closing expenses
Total extraordinary income
Extraordinary loss
Loss on disposal of fixed assets
Effect of adoption of new accounting standards for
asset retirement obligations
Loss on phased acquisition
Total extraordinary loss
Income before income taxes and minority interests
Income taxes
Income before minority interests
Net income
9

Six Months ended
June 30, 2011
Amount18,673
12,989
5,683
3,801
1,882

(millions of yen)
Six Months ended
June 30, 2012
Amount20,36913,651
6,717
4,514
2,203

20
58
13
86
179

27
44
34
49
30
186

171
8
29
209
1,852

159
4
22
185
2,204

47

0
-

11

-

3
62

0

7

2

446

-

96
550
1,364
813
551
551

2
2,202
1,202
999
999

Consolidated Statements of Comprehensive Income

Income 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

Six Months ended
June 30, 2011
Amount551(millions of yen)
Six Months ended
June 30, 2012
Amount
999

6

18

54

(0)

14

(10)

5

2

80
631

9
1,009

631

1,009

-

-

(3) Consolidated Statements of Cash FlowsSix months ended
June 30, 2011
Amount(millions of yen)Six months ended
June 30, 2012
Amount

1,364
1,213

2,202
1,194

446

－

40
3
7
96
(47)

42
4
2
-

5

8

(16)

11

15

200

(26)

(26)

(28)
171
(19)
(13)
(58)

(28)
159
(40)
4
(44)

44

(36)

124

20

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation and amortization
Effect of adoption of new accounting standards for
asset retirement obligations
Amortization of goodwill
Amortization of bonds issuance expenses
Loss on disposal of fixed assets(Gain) loss on phased acquisition(Gain) loss on sales of business
Increase (decrease) in allowance for doubtfulreceivables
Increase (decrease) in provision for employees’
retirement benefits
Increase (decrease) in provision for directors’
retirement benefits
Increase (decrease) in provision for loss on
cancellation of rental contract
Interest and dividend income
Interest expenses
Foreign exchange (gains) losses
Equity in (earnings) losses of affiliates(Gain) loss on investments in silent partnership(Increase) decrease in notes and accounts receivable trade(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in advances received
Increase (decrease) in other liabilities
Other - net
Sub totalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

(158)

(25)

823
(1,782)
284
2,491
24
(171)
(2,239)
104

43
(16)
(186)
3,488
24
(162)
(2,449)900

Cash flows from investing activities
Purchase of tangible assets(2,777)(983)

11

Purchase of intangible assets
Proceeds from sales of investment securities
Proceeds from purchase of stocks of subsidiaries
resulting in change of consolidation
Loans receivableCollection of loans receivable
Lease and guarantee deposits
Collection of lease and guarantee deposits
Other - net
Net cash provided by (used in) investing activities

Cash flows from financing activities
Net increase (decrease) in short-term debt
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds
Payments for redemption of bonds
Dividends paid to shareholders
Other - net
Net cash provided by (used in) financing activities
Foreign currency translation adjustments on cash andcash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period

12

(37)
105

(41)
317

292

-

(54)
48
(146)
64
17
(2,487)

(85)
160
(125)
45
8
(703)

(484)
3,620
(2,033)
1,963
(178)
(413)
(5)
2,469

1,000
(1,753)
(320)
(244)
(4)
(1,323)

5

(4)

91
8,473
8,565

(1,130)10,532
9,401

(4) Notes on the Going-concern Assumption
Not applicable(5) Notes on Significant Changes in the Amount of Shareholders’ Equity
Not applicable(6) Segment Information
I. Six Months ended June 30, 2011 (January 1 to June 30, 2011)
1. Net sales and income/loss by reportable segment(millions of yen)
Reportable segment

Amount recordedon consolidated

Domestic

Overseas

operations

operations

17,375

1,297

18,673-

18,673

2

7

10

(10)

-

Total

17,3781,305

18,683(10)

18,673

Segment income

2,364

58

2,422

(540)

1,882

Total

Adjustments

statements of(note 1)income (note 2)

Net sales
Sales to outside customers
Inter-segment sales andtransfers

Note: 1. The minus 540 million yen adjustment for segment income includes 8 million yen elimination ofinter-segment sales and minus 548 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
Not applicable
II. Six Months ended June 30, 2012 (January 1 to June 30, 2012)
1. Net sales and income/loss by reportable segment(millions of yen)
Reportable segment

Amount recordedon consolidated
Adjustments

statements of(note 1)income (note 2)

Domestic

Overseas

operations

operations

19,011

1,358

20,369-20,369

3

0

3

(3)

-

Total

19,014

1,358

20,373(3)

20,369Segment income (loss)

2,858

106

2,964

(761)

2,203

Total

Net sales
Sales to outside customers
Inter-segment sales andtransfers

13

Note: 1. The minus 761 million yen adjustment for segment income includes 7 million yen elimination ofinter-segment sales and minus 769 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 applicable144. Supplementary Information
Weddings Held, Orders Received, and Sales volume
1) Number of weddings held

Six Months ended
June 30, 2011

Six Months ended
June 30, 2012

Year ended
December 31, 2011

Number of weddings

Number of weddings

Number of weddings

Domestic operations

held (cases)
3,797

held (cases)
4,317

held (cases)
8,478

Overseas operations

1,340

1,393

2,768

Total

5,137

5,710

11,246

Segment

2) Orders received

Six Months ended
June 30, 2011

Six Months ended
June 30, 2012

Year ended
December 31, 2011

Orders

Order

Orders

Order

Orders

Order

Segment

receivedbacklog

receivedbacklog

receivedbacklog

Domestic operations(cases)4,587(cases)6,134(cases)5,785(cases)6,930(cases)8,596(cases)5,462Overseas operations

1,577

1,629

1,666

1,727

2,830

1,454

Total

6,164

7,763

7,451

8,657

11,426

6,9163) Sales volume

Segment

Six Months ended
June 30, 2011

Six Months ended
June 30, 2012

Year ended
December 31, 2011

AmountAmountAmountDomestic operations

17,37519,011

38,986

Overseas operations

1,297

1,358

2,755

Total

18,673

20,36941,741

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

15