November 9, 2011

Best Bridal Inc.
Consolidated Earnings Report for the Nine Months ended September 30, 2011
(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):November 14, 2011

Dividend payout:-

Supplementary materials to quarterly financial results available:

No

Quarterly earnings presentation held:No(Amounts rounded down to the nearest million yen)

1. Consolidated Performance for the Nine Months ended September 30, 2011 (January 1, 2011 – September
30, 2011)(1) Consolidated Operating Results (percentages indicate year-on-year changes)
Net sales
million yen%

Operating income
million yen%

Ordinary income
million yen%

Net income
million yen%

Nine months ended
September 30, 2011

28,3906.3

2,958(31.4 )

2,804

(31.8)

919(58.9)

Nine months ended
September 30, 2010

26,699

20.1

4,314

29.5

4,113

26.7

2,236

23.3

Net income per shareyen
Nine months ended
September 30, 2011
Nine months ended
September 30, 2010

Diluted net income per
share
yen

3,755.11-

27,407.71-(2) Consolidated Financial Position

September 30, 2011

Total assets
million yen
46,748December 31, 2010
40,891
Reference: Shareholders’ equity: September 30, 2011:
December 31, 2010:

Net assets
million yen
16,072
15,832
16,072 million yen
15,832 million yen

Shareholders’ equity ratio%
34.4

Net assets per shareyen
65,657.32

38.7

64,673.25

2. Dividends
End-Q1yen

End-Q2yen

Dividend per share
End-Q3yen

Year-endyen

Annual total
yenYear ended December
2,500.00－
1,700.00
4,200.00
31, 2010
Year ending December
1,000.00－
31, 2011
Forecast forYear ending December
1,000.00
2,000.00
31, 2011
Note: No revisions were made to dividend forecast during the three months ended September 30, 2011.

3. Earnings Forecast for the Fiscal Year ending December 31, 2011 (January 1, 2011 –December 31, 2011)(Percentages indicate year-on-year changes)
Net income per
Net sales
million yen%

Operating income
million yen%

Ordinary income
million yen%

Net income
million yen
%

share
yen

Year ending
40,4005.1
5,470(24.3)
5,420(22.0)
2,360(37.5)
December 31, 2011
Note: No revisions were made to earnings forecast during the three months ended September 30, 2011.

9,640.52

4. Other Information
For details, see “Other Information” on page 4 in the Accompanying Material.

(1) Changes affecting the consolidation status of significant subsidiaries during the period: No*This refers to additions and removals of significant subsidiaries to and from the scope of consolidated results
during the period.

(2) Use of simplified accounting methods and/or specific accounting methods: Yes*This refers to the application of simplified accounting methods and accounting methods specific to preparation ofquarterly consolidated financial statements.

(3) Changes in accounting principles, procedures, and method of presentation, etc.
1) Changes in accordance with revisions to accounting standards etc.: Yes
2) Changes other than 1) above: None
*This refers to changes in accounting principles, procedures, and methods of presentation used in preparation ofquarterly consolidated financial statements.

(4) Shares issued (common stock)
September 30, 2011

December 31, 2010

1) Number of shares issued at end of period (including
treasury stock)244,800

244,800

2) Number of shares held in treasury at end of period－－

Nine months ended
September 30, 2011
3) Average number of shares outstanding during theperiod244,800

Nine months ended
September 30, 2010
81,6002

* Quarterly Review Status
This report is exempt from the review requirements of Japan’s Financial Instruments and Exchange Act.
As of this report’s publication, a review of the consolidated quarterly financial statements in accordancewith the Act had not been completed.

*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 theforecasts herein and other notice on the use of earnings forecasts, please refer to "Earnings Forecast" onpage 3 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 Simplified and/or Specific Accounting Methods(3) Changes in Accounting Principles, Procedures, and Method of Presentation, etc.
3. Consolidated Financial Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income(3) Consolidated Statements of Cash Flows(3) Note on the Going-concern Assumption(4) Segment Information(5) Note on Significant Changes in the Amount of Shareholders’ Equity

2
2
2
3
4
4
4
4-5
6
6
8
9-10
11
11
11

1. Review of Consolidated Financial Results(1)
Operating Results
During the first nine months of the fiscal year ending December 31, 2011, the Japanese economy wassignificantly impacted by the earthquake of March 11, 2011, which occurred in midst of a general recovery
trend. After a severe decline in economic activity following the earthquake, the economy began to show
signs of gradual recovery. The future course of the economy became uncertain, however, due to the risk oflong-term power shortages, a sovereign debt crisis in Europe, concerns of a slowdown in the U.S.
economy, and protracted yen appreciation.
In this environment, the Best Bridal Group endeavored to increase sales and profitability by continuallycreating new value in the guest house and wedding business through high-quality, appealing outlets andservices and proactive efforts to improve operational efficiency. The Great East Japan Earthquake
severely impacted the Group’s business, however, as the Sendai office and some offices in the Tokyo
metropolitan area temporarily suspended operations and some customers cancelled or postponed
weddings and receptions.
As a result of the above factors, though net sales for the first nine months of the year increased 6.3%
over the same period of the previous year to ¥28,390 million, operating income declined 31.4% year on
year to ¥2,958 million and ordinary income declined 31.8% year on year to ¥2,804 million.
Net income declined 58.9% to ¥919 million, due mainly to a ¥446 million expense in the first quarter
associated with the adoption of an accounting standard for asset retirement obligations.
The following are results by business segment.
1) Domestic Operations
During the first nine months, the addition of a new outlet which opened in the previous fiscal year and the
newly consolidated Hospitality Network Corporation contributed to higher sales in the domestic business.
On an existing-outlet basis, however, the number of weddings and orders declined due to the impact of
the Great East Japan Earthquake.
As a result, net sales in the domestic business for the first nine months totaled ¥26,390 million, and thesegment’s operating income totaled ¥3,658 million.
2) Overseas Operations
In the nine-month period, the number of weddings increased over the same period a year ago as theoverall market recovered moderately and the Group strengthened its sales foundation. Net sales declined
slightly, however, due to the impact of yen appreciation on wedding package prices.
Overseas business net sales totaled ¥1,999 million and operating income for the segment totaled ¥95
million.
Beginning with the first quarter of the current fiscal year, the Company has adopted an accounting
standard for the disclosure of business segment information and guidance on the application of thestandard.
(2) Financial Condition
1) Assets, Liabilities, and Net Assets
Assets at the end of the third quarter totaled ¥46,748 million, an increase of ¥5,856 million compared withthe end of the previous fiscal year due mainly to increases of ¥1,410 million in cash and cash equivalents,¥2,050 million in buildings and structures resulting from capital investments to improve offices, andincreases of ¥1,664 million in lease and guarantee deposits and ¥1,132 million in goodwill associated withthe consolidation of Hospitality Network Corporation.
Liabilities at the end of the third quarter totaled ¥30,675 million, an increase of ¥5,615 million from theend of the previous fiscal year. This is mainly due to the fact that although taxes payable declined by¥1,655 million, long-term debt and bonds increased by ¥4,236 million as a result of the consolidation of
Hospitality Network Corporation and expenditures to enhance the Omiya office. In addition, advances
received increased by ¥1,724 million, and recognition of asset retirement obligations increased liabilities by¥1,056 million.

2

Net assets at the end of the third quarter totaled ¥16,072 million, an increase of ¥240 million comparedwith the end of the previous fiscal year. The increase was due mainly to the booking of ¥919 million inquarterly net income, which outweighed ¥660 million in dividends paid from retained earnings.
2) Cash Flow
Cash and cash equivalents (“cash”) at the end of the third quarter increased by ¥1,410 million from theend of the previous fiscal year to ¥9,883 million. Cash flows and factors behind changes in the cash flows
are explained below.
(Operating Cash Flow)
Cash generated from operating activities during the nine-month period totaled ¥2,231 million, a decreaseof 49.2% from the same period a year ago. The main factors were ¥2,317 million in income before income
taxes, ¥1,867 million in depreciation expenses, an increase of ¥1,664 million in advances received, and acharge of ¥446 million associated with the adoption of an accounting standard for asset retirement
obligations. Against these amounts were deducted ¥3,051 million in corporate taxes paid and a decline of¥1,685 million in other liabilities.
(Investing Cash Flow)
Cash used in investing activities totaled ¥2,886 million, a decrease of 17.3% from the same period a year
ago. There were outflows of ¥2,980 million for the purchase of property, plant, and equipment, and an
inflow of ¥292 million in proceeds from purchase of stocks of subsidiaries resulting in changes in scope of
consolidation.
(Financing Cash Flow)
Cash provided by financing activities totaled ¥2,101 million, compared with ¥416 million in the same periodof the previous year. There was a net increase of ¥2,766 million in interest-bearing debt (short-term loans,long-term loans, bonds), and an outflow of ¥657 million for the payment of dividends.
(3) Earnings Forecast
There is no change to the consolidated earnings forecast for the fiscal year ending December 31, 2011,
which was announced on May 13, 2011. Actual results may differ from the current forecast as of theannouncement date of these materials, due to changes in the economic environment surrounding Best
Bridal and the Best Bridal Group, trends in the bridal market, changes in foreign exchange markets, andother factors.

3

2. Other Information(1) Changes in Significant Subsidiaries
Not applicable(2) Application of Simplified and/or Specific Accounting Methods(Simplified accounting methods)
1) Calculation method for depreciation of fixed assets
Regarding assets for which the straight-line method is used, the time-proportional approach is used to
calculate the depreciation expense for a given fiscal year.
Regarding assets for which the straight-line method is used, the time-proportional approach is used to
calculate the depreciation expense for a given 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 from the previous year and tax planning methods.
(Special accounting treatments for the preparation of quarterly financial statements)
Calculation of Taxes
Regarding taxes, a reasonable estimate of the effective tax rate for the projected full-year pretax income
for the current fiscal year, including the actual income figure for the first two quarters, has been arrived atusing the tax-effect accounting method. This estimated effective tax rate has been used to calculate taxes
against the first two quarter’s income before taxes and minority interests. In cases where this estimatedeffective tax rate cannot be used, however, the statutory effective tax rate is used.
The income tax adjustment is included in income taxes.
(3) Changes in Accounting Rules, Procedures and Indication Methods
1) Changes due to revision of accounting standards
a. Application of accounting standard for asset retirement obligations
From the first quarter of the current fiscal year, the Company has applied the “Accounting Standard for
Asset Retirement Obligations” (Accounting Standards Board of Japan Statement No. 18, issued March 31,2008) and the “Guidance on Accounting Standard for Asset Retirement Obligations” (AccountingStandards Board of Japan Guidance No. 21, issued March 31, 2008).
In accordance with this change, consolidated operating income and ordinary income for the ninemonths ended September 30, 2011 both declined by ¥125 million and income before income taxes andminority interests declined ¥572 million. In addition, with the application of the standard, there is a ¥963
million change in the amount of asset retirement obligations.
b. Application of “Accounting Standard for Equity Method of Accounting for Investment” and “Practical
Solution on Unification of Accounting Policies Applied to Associates Accounted for Using the Equity
Method”
From the first quarter of the current fiscal year, the Company has applied the “Accounting Standard for
Equity Method of Accounting for Investment” (Accounting Standards Board of Japan Statement No. 16,
issued March 10, 2008) and the “Practical Solution on Unification of Accounting Policies Applied to
Associates Accounted for Using the Equity Method” (Accounting Standards Board of Japan Practical Issue
Task Force No. 24, issued March 10, 2008).
This change has no impact on the profit and loss statement.
c. Application of “Accounting Standard for Business Combinations”, etc.
From the first quarter of the current fiscal year, the Company has applied the “Accounting Standard forBusiness Combinations” (Accounting Standards Board of Japan Statement No. 21, issued December 26,2008), “Accounting Standard for Consolidated Financial Statements” (Accounting Standards Board ofJapan Statement No. 22, issued December 26, 2008), “Partial Amendment to Accounting Standard for
Research and Development Costs” (Accounting Standards Board of Japan Statement No. 23, issued

4December 26, 2008), “Accounting Standard for Business Divestitures” (Accounting Standards Board ofJapan Statement No. 7, issued December 26, 2008), “Accounting Standard for Equity Method of
Accounting for Investment” (Accounting Standards Board of Japan Statement No. 16, issued March 10,2008) and “Revised Guidance on Accounting Standard for Business Combinations and AccountingStandard for Business Divestitures” (Accounting Standards Board of Japan Guidance No. 10, issued
December 26, 2008).
2) Changes to Methods of Presentation(Related to quarterly consolidated income statement)
In accordance with “Cabinet Office Ordinance Partially Revising Ordinance on Financial Statements”(Cabinet Office Ordinance No. 5, issued March 24, 2009), which was based on “Accounting Standard forConsolidated Financial Statements” (Accounting Standards Board of Japan Statement No.22, issued
December 26, 2008), the Company has added the item “Income before minority interests” in its
consolidated income statement for the first three quarters of the current consolidated fiscal year.

53. Consolidated Financial Statements(1) Consolidated Balance Sheets
September 30, 2011
Amount(millions of yen)
December 31, 2010
Amount

9,992
281
54
340
1,129
(24)

8,581
317
92
384
1,083
(12)

11,774

10,44817,192
4,560
1,032

15,141
4,563
1,227

Total fixed assets
Intangible assets
Goodwill
Other

22,786

20,932

1,148
173

－
175

Total intangible assets
Investments and other assets
Lease and guarantee deposits
Other

1,321

175

5,675
5,145

4,011
5,309

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 investments and other assets
Total fixed assets
Deferred assets
Total assets

10,821

9,320

34,92930,42944

1446,74840,891

6

Liabilities
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
Provision for shop closing expenses
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
Valuation and translation adjustments
Net unrealized gain on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

September 30, 2011
Amount(millions of yen)
December 31, 2010
Amount

1,849
530
3,480
640
508
2,921
52
－
1,916

1,733
－
2,789
356
2,164
1,196
52
9
1,803

11,89910,105

2,252
13,106
227
367
165
1,056
1,600

984
11,643
83
344
205
－
1,693

18,775

14,95430,67525,059472
634
15,198472
634
14,93916,304

16,046

(28)

(4)

(19)

(60)

(183)

(149)

(231)

(214)

16,072

15,832

46,74840,891

7

(2) Consolidated Statements of Income

Net sales
Cost of sales

Nine months ended
September 30, 2010
Amount26,69917,377(millions of yen)
Nine months ended
September 30, 2011
Amount28,39019,673Gross profit

9,321

8,716

Selling, general and administrative expenses

5,007

5,758

Operating income
Non-operating income
Interest income
Gain on investments in silent partnership
Equity in earnings of affiliates
Other

4,314

2,958

41
122
6
29

31
125
10
104

199

272

240
150
9

265
129
31

Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange loss
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

400

426

4,113

2,804

0
－

1
47

－

11

－

3

0

64

9
25

－
8

－

446

－

96

34

551

4,080

2,317

1,868

1,398

Income before minority interests－

919

Minority interests in net earnings (loss)

(25)

－

Net income

2,236

919

Total extraordinary income
Extraordinary loss
Loss on shop closing
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 taxes8(3) Consolidated Statements of Cash flows

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 doubtful receivables
Increase (decrease) in provision for employees’ retirement
benefits
Increase (decrease) in provision for directors’ retirement
benefits
Increase (decrease) in provision for loss on cancellation ofrental contract
Interest and dividend income
Interest expenses
Foreign exchange (gain) loss
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

Nine months ended
September 30,
2010(millions of yen)
Nine months ended
September 30,
2011

AmountAmount
4,080
1,719

2,317
1,867

－

446

－
2
25
－
－
0

70
6
8
96
(47)
7

13

(21)

135

23

(39)

(39)

(42)
240
147
(6)
(122)

(41)
265
95
(10)
(125)

(153)

12

(87)
346
1,415
222
(51)

118
8
1,664
(1,685)
483

7,847

5,520

Interest and dividends received
Interest paid
Income taxes paid

19
(244)
(3,231)

25(263)(3,051)

Net cash provided by (used in) operating activities

4,390

2,231

(2,149)(8)(2,980)(65)

Sub total

Cash flows from investing activities
Purchase of tangible assets
Purchase of intangible assets

9

(600)
－
(200)

(101)
116
－

－

292

(141)
203
(627)
－
32

(104)
51
(188)
90
3

(3,490)(2,886)230

36

Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of bonds
Payments for redemption of bonds
Payments received from minority shareholders
Dividends paid to shareholders
Other – net

1,396(1,775)
490
(376)
25
(406)
－

4,120
(2,904)
1,963
(448)
－
(657)
(7)

Net cash provided by (used in) financing activities

(416)

2,101

Foreign currency translation adjustments on cash andcash equivalents

(172)

(36)

411

1,410

Cash and cash equivalents, beginning of period

7,825

8,473

Cash and cash equivalents, end of period

8,236

9,883

Cash and cash equivalents, end of period

8,236

9,883

Purchase of investment securities
Proceeds from sales of investment securities
Acquisition of affiliate’s shares
Proceeds from purchase of stocks of subsidiaries resulting
in changes in scope 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

Net increase (decrease) in cash and cash equivalents10(4) Note on the Going-concern Assumption
Not applicable(5) Segment Information
1. Overview of reportable segment
The Best Bridal Group’s reportable segments are components of the Group about which separate
financial information is available. These segments are subject to periodic examinations to enable theCompany’s board of directors to decide how to allocate resources and assess performance.
The Group’s operations are classified into two reportable segments: the domestic operations segment thatprovides services such as planning and operation related to wedding ceremonies and banquets in Japanand the overseas operations segment that conducts weddings abroad.
Domestic operations comprises store management in Japan and sales to customers, provision of food,drink, and other services at wedding banquets, dress rental and beauty care services, as well as the
management of hotel weddings and provision of hotel accommodation services. Overseas operations
consist mainly of the management of wedding venues and operation of weddings in Hawaii and Bali,
Indonesia for customers who booked through the Group’s sales salons in Japan. The segment also
subleases wedding facilities to an affiliate in South Korea.
2. Sales and income/loss by reportable segment
Nine months ended September 30, 2011 (January 1 to September 30, 2011)(millions of yen)
Reportable segment

Net sales
Sales to outside
customers
Inter-segment sales
and transfers
Total

Adjustments(note 1)

Amountrecorded on
consolidated
statements ofincome (note 2)

28,390－28,390

10

15

(15)

－

2,009

28,405(15)

28,390

Domestic
operations

Overseas
operations

26,3901,999

526,395

Total

Segment income (loss)
3,658
95
3,753
(795)
2,958
Note: 1. The minus 795 million yen adjustment for segment income includes 12 million yen elimination of intersegment sales and minus 807 million yen of unallocated corporate expenses. The main component of these
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.

3. Impairment loss on fixed assets or goodwill by reportable segment
Third quarter ended September 30, 2011 (July 1 to September 30, 2011)
Not applicable
Additional information
Effective the first quarter of the fiscal year ending December 31, 2011, the Company adopted the
Revised Accounting Standard for Disclosures about Segments of an Enterprise and Related Information(ASBJ Statement No. 17, revised March 27, 2009) and its accompanying Guidance on the AccountingStandard for Disclosures about Segments of an Enterprise and Related Information (Guidance No. 20,
March 21, 2008).

(6) Note on Significant Changes in the Amount of Shareholders’ Equity
Not applicable11