〔Delayed〕The original disclosure in Japanese was released on May 9, 2014 at 15:00 (GMT+9)

May 9, 2014

Best Bridal Inc.
Consolidated Earnings Report for the Three Months ended March 31, 2014
(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): May 14, 2014
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 Three Months ended March 31, 2014
(January 1, 2014 – March 31, 2014)(1) Consolidated Operating Results(Percentages indicate year-on-year changes)

Net sales
million yen

Operating income
million yen%

Ordinary income
million yen%%
Three months ended
10,942
12.9
514
(8.3)
573
(10.5)March 31, 2014
Three months ended
9,687
10.5
560
62.4
640
47.6
March 31, 2013
Note: Comprehensive income: Three months ended March 31, 2014: 307 million yen (-36.2 %)Three months ended March 31, 2013: 482 million yen (174.3 %)Net income
million yen%

Diluted net income
per shareyen

Net income
per shareyen

Three months ended
6.51
5.81
March 31, 2014
Three months ended
6.16
March 31, 2013
Note:
Effective July 1, 2013, the Company conducted a 1:200 common stock split. Net income per share anddiluted net income per share were calculated assuming that the stock split was effected at the beginning of the fiscal
year ended December 31, 2013.
(2) Consolidated Financial Position

March 31, 2014

Total assets

Net assets

million yen

million yen
54,75924,72553,96824,668December 31, 2013
Reference: Total equity: March 31, 2014:
24,725 million yen
December 31, 2013: 24,668 million yen
Total equity =Shareholders’ equity plus total accumulated other comprehensive income.

Equity ratio
%
45.2
45.7

318

5.4

301

260.0

2. Dividends
End-Q1yen

End-Q2yen

Dividend per share
End-Q3yen

Year ended
1,000.00
December 31, 2013
Year ending
December 31, 2014
Year ending
December 31, 2014
5.00
(Forecast)
Note: No revision has been made to the latest dividends forecast.

Year-endyen

Annual total
yen

-

5.00

-

-

5.00

10.00

Effective July 1, 2013, the Company conducted a 1:200 common stock split. Without adjusting to the stock split, theyear-end dividend per share for the fiscal year ended December 31, 2013 would be 1,000.00 yen, totaling theannual dividend per share of 2,000.00 yen.

3. Earnings Forecast for the Fiscal Year ending December 31, 2014
(January 1, 2014 – December 31, 2014)(Percentages indicate year-on-year changes)
Net sales
million yen

Operating income
million yen%

Ordinary income
million yen%%
Six months ending
23,1604.0
1,600(38.4)
1,600(40.4)
June 30, 2014
Year ending
52,650 11.0
7,250
5.7
7,250
1.7
December 31, 2014
Note: No revision has been made to the latest earnings forecast.
As has been announced in the Notice dated February 14, 2014 on the “Establishment of a Subsidiary, Company
Split, and Partial Amendment of the Article of Incorporation in Connection with Transition to a Holding Company
Structure,” the Company will move to a holding company structure effective July 1, 2014. Hence, consolidated net
income and net income per share are difficult to be reasonably projected at this moment and are therefore notpresented herein.

*Notes(1) Changes affecting the consolidation status of significant subsidiaries during the period: Yes
Newly consolidated: Best Bridal Inc. Successor Preparatory Company
Note: For details, please refer to “(1) Changes in Significant Subsidiaries” in Section “2.
Other Information” on page 3.
(2) Use of accounting methods specific to the preparation of quarterly consolidated financial
statements: Yes
Note: For details, please refer to “(2) Application of Specific Accounting Methods for
the Preparation of Quarterly Financial Statements” in Section “2. Other Information”
on page 3.
(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)1) Number of shares issued at end of period(including treasury stock)2) Number of shares held in treasury at end of
periodMarch 31, 2014

December 31, 2013

48,960,000

48,960,000

131,512

131,512Three Months ended Three Months ended
March 31, 2014
March 31, 2013
3) Average number of shares outstanding during
the period

48,828,488

48,960,000

Effective July 1, 2013, the Company conducted a 1:200 stock split. The shares issued(common stock) were calculated assuming that the stock split was effected at the beginning of the
fiscal year ended December 31, 2013.
Note:* 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. Actual
results may differ from forecasts due to changes in the business environment. For theassumptions 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, 2014” in thesection “1. Review of Consolidated Financial Results” on page 3 in the accompanying materials.

Accompanying Material – Contents
1. Review of Consolidated Financial Results(1) Operating Results(2) Financial Condition(3) Earnings Forecast for the Fiscal Year ending December 31, 2014
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 Policies, Estimates, and Retrospective Restatement
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) Notes on the Quarterly Financial Statements(Note on the Going-concern Assumption)(Note on Significant Changes in the Amount of Shareholders’ Equity)(Segment Information)
4. Supplementary Information

1

2
2
3
3
3
3
3
4
5
5
7
7
8
9
9
9
10
12

1. Review of Consolidated Financial Results(1) Operating Results
In the first three months of the fiscal year ending December 31, 2014, the Japanese economy
underwent a moderate recovery trend as signs of improvement in corporate earnings and theemployment and wage environment were seen, with the help of the fiscal and financial stimulus
measures by the government, as well as a last-minute rise in consumption before the increase in
the consumption tax. However, the outlook remains uncertain as there are concerns towards thecooling of consumer sentiment following the increase in the consumption tax, increases in importcosts as a result of the weak yen and high fuel costs, and a downturn in the global economy.
Amid this environment, the Best Bridal Group endeavored to increase sales and profitability bycontinually actively working towards creating new value in the bridal market and hotel market;
creating high-quality, appealing outlets; and providing high value-added services in order toaccurately respond to customer needs that are becoming more individualized and varied.
As a result of the above factors, the Group posted consolidated net sales of ¥10,942 million in
the first quarter, an increase of 12.9% over the same period of the previous fiscal year. Operating
income totaled ¥514 million, a year-on-year decrease of 8.3%, ordinary income amounted to ¥573
million, down 10.5%, and net income totaled ¥318 million, a 5.4% gain over the first quarter of theprevious fiscal year.
The results for each business segment were as follows.
Note that the reporting segments have been changed, starting from the first quarter of the fiscal
year ending December 31, 2014. In the comparisons with the first three months of the previous
fiscal year below, the figures for the first three months of the previous fiscal year have been
reclassified into the business segments following this change.
1. Domestic wedding businessAlthough the number of weddings held at Best Bridal’s existing outlets decreased, sales increased
during the first quarter of the fiscal year as a result of a steady growth in the number of budget
weddings and family weddings that were held.
As a result, net sales in the domestic wedding business totaled ¥7,820 million, a year-on-yearincrease of 2.2%, and segment operating income was ¥1,071 million, an decrease of 11.2%.
2. Hotel business
During the first quarter of the fiscal year, operations proceeded favorably at Hotel InterContinental
Tokyo Bay, for which renovations were completed during the previous fiscal year, and the acquired
business The Strings by InterContinental Tokyo contributed to an increase in sales.
As a result, net sales in the hotel business totaled ¥2,455 million, a year-on-year increase of
69.5%, and the segment recorded an operating loss of ¥12 million, compared to an operating lossof ¥167 million during the same period of the previous fiscal year.
3. Overseas business
The number of weddings held in the first quarter of the fiscal year was largely unchanged versus
the same period of the previous fiscal year despite a moderate recovery in overall market
conditions.

2As a result, net sales in the overseas business totaled ¥665 million, a year-on-year increase of
13.5%, while segment recorded an operating loss of ¥49 million, compared to an operating loss of¥34 million during the same period of the previous fiscal year.
(2) Financial Condition
Assets, liabilities, and net assets
Assets at the end of the first quarter (March 31, 2014) totaled ¥54,759 million, an increase of ¥791
million from the end of the previous fiscal year (December 31, 2013). This was mainly due to a¥698 million increase in tangible assets related to the new business acquisition, a ¥586 million
increase in goodwill, and a ¥651 million increase in lease and guarantee deposits that was offset
by a ¥1,675 million decrease in current assets.
Liabilities at the end of the first quarter totaled ¥30,034 million, ¥734 million more than at the endof the previous fiscal year. The increase in liabilities is attributable to a net increase of ¥1,434
million in long-term debt and bonds, an increase of ¥428 million in advances received, and anincrease of ¥320 million in asset retirement obligations related to the new business acquisition,
which was partially offset by a ¥1,540 million decrease in income taxes payable.
Net assets at the end of the first quarter totaled ¥24,725 million, an increase of ¥57 million fromthe end of the previous fiscal year. This increase was mainly due to the booking of ¥318 million in
net income for the quarter, which outweighed the ¥244 million in dividends paid from retained
earnings.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2014
There is no change to the consolidated earnings forecasts for the six months ending June 30,
2014 and for the year ending December 31, 2014 announced on February 14, 2014.
2. Other Information(1) Changes in Significant Subsidiaries
In the first quarter of the current fiscal year, Best Bridal Inc. Successor Preparatory Company was
newly established and added to the scope of consolidation. Though not being required statutorily,
Ecpark Pte. Ltd., one of the principal non-consolidated subsidiaries, was now added to the scopeof consolidation, as its comparative importance increased in view of the revised policy on Group
consolidation.
(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 calculatedby allocating a quarterly proportion of the amount for the full financial 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 or3emergence of temporary differences since the end of the previous financial 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, 2014, 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, the statutory effective tax rate isused.
(3) Changes in Accounting Policies, Estimates, and Retrospective Restatement
Not applicable.

43. Consolidated Financial Statements(1) Consolidated Balance Sheets
December 31, 2013
AmountAssetsCurrent assets
Cash and deposits
Accounts receivable - tradeMarketable securities
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
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Other
Total investments and other assets
Total fixed assets
Deferred assets
Total assets

5(millions of yen)March 31, 2014
Amount

8,866
476
5,000
3
373
3,216
(41)
17,895

9,220
629
5,001
10
431
1,540
(42)
16,791

15,342
4,757
1,361
21,46015,903
4,761
1,494
22,159

962
191
1,153

1,548
186
1,735

6,299
7,103
13,40236,01656
53,9686,950
7,070
14,02037,91552
54,759

Liabilities
Current liabilities
Accounts payable - trade
Short-term debt
Current portion of long-term debt
Current portion of bonds
Income taxes payable
Advances received
Other
Total current liabilities
Fixed liabilities
Bonds
Convertible bonds
Long-term debt
Provision for employees’ retirement benefits
Provision for directors’ retirement benefits
Asset retirement obligations
Other
Total fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
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

6

December 31, 2013
Amount(millions of yen)March 31, 2014
Amount

2,189
2,709
484
1,786
968
2,231
10,370

2,196
860
2,645
484
245
1,397
2,298
10,128

1,106
5,000
9,960
282
636
1,083
861
18,92929,300914
5,000
10,790
292
642
1,404
862
19,90530,034472
634
23,443(88)
24,461

472
634
23,509(88)
24,527

88

87

46

29

71
206
24,66853,96881
197
24,72554,759(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
Dividend income
Gain on investments in silent partnership
Gain on valuation of derivatives
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Other
Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on disposal of fixed assets
Total extraordinary loss
Income before income taxes and minority interests
Income taxes
Income before minority interests
Minority interests in income (loss)
Net income

7

Three months
ended March 31,
2013
Amount
9,687
6,757
2,929
2,368
560

(millions of yen)Three months
ended March 31,
2014
Amount10,942
7,606
3,336
2,821
514

16
19
57
46
11
151

18
27
59
29
134

67
3
71
640

53
18
3
75
573

17
17
623
321
301
301

21
21
551
235
316
(1)
318

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

8

Three months
ended March 31,
2013
Amount301(millions of yen)Three months
ended March 31,
2014
Amount
316

53

(1)

15

(16)

103

9

7

-

180
482

(8)
307

482

307

-

-

(3) Notes on the Quarterly Financial Statements(Note on the Going-concern Assumption)
Not applicable(Note on Significant Changes in the Amount of Shareholders’ Equity)
Not applicable9(Segment Information)
I. Three months ended March 31, 2013 (January 1 to March 31, 2013)
1. Net sales and income/loss by reportable segment
Reportable segment
Domestic
weddingbusiness(millions of yen)Amount recorded
Adjustmentson consolidated(note 1)statements ofincome (note 2)

Hotelbusiness

Overseasbusiness

7,652

1,448

586

9,687

-

9,687

69

28

0

97

(97)

-

Total

7,721

1,476

586

9,784

(97)

9,687

Segment income (loss)

1,207

(167)

(34)

1,004

(443)

560

Net sales
Sales to outside customers
Inter-segment sales andtransfers

Notes:

Total

1. Minus 443 million yen adjustments for the segment loss includes 4 million yen elimination ofinter-segment sales and 448 million yen corporate expenses that are not allocated to eachreportable segment. The main component of these unallocated corporate expenses is SG&A
expenses that are not attributable to reportable segments.
2. Segment income or 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. Three months ended March 31, 2014 (January 1 to March 31, 2014)
1. Net sales and income/loss by reportable segment(millions of yen)
Reportable segment
Domestic
weddingbusiness

Adjustments(note 1)

Amount recordedon consolidated
statements ofincome (note 2)

10,942-

10,942

-

158

(158)

-

2,488

665

11,100(158)

10,942

(12)

(49)

1,010

(495)

514

Hotel
business

Overseasbusiness

7,820

2,455

665

125

32

Total

7,946

Segment income (loss)

1,071

Net sales
Sales to outside customers
Inter-segment sales andtransfers

Notes:

Total

1. Minus 495 million yen adjustments for the segment loss includes 12 million yen elimination ofinter-segment sales and 508 million yen corporate expenses that are not allocated to eachreportable segment. The main component of these unallocated corporate expenses is SG&A
expenses that are not attributable to reportable segments.
2. Segment income or loss is adjusted to correspond with operating income reported on thequarterly consolidated statements of income for the corresponding period.

10

2. Change in Reportable Segment
Hotel business, which used to be classified as Domestic operations, has increased its importance involume. Hence, from the first three months of the fiscal year ending December 31, 2014, the 2reportable segments of “Domestic operations” and “Overseas operations” have been changed into
3 reportable segments of “Domestic wedding business,” “Hotel business” and “Overseas business.”
The above segment information for the first three months ended March 31, 2013 has been
restated in accordance with the new reportable segment for the first three months of the fiscal year
ending December 31, 2014.
3. Impairment loss on fixed assets or goodwill by reportable segment(Significant Change in the amount of Goodwill)
Hotel business segment
Best Global, Inc., a consolidated subsidiary in the Company, acquired the business operation
pertaining to the management of The Strings by InterContinental Tokyo, thereby increasing therelated goodwill value by 618 million yen in the first quarter ended March 31, 2014.

11

4. Supplementary Information
Weddings Held, Orders Received, and Sales volume
1) Number of weddings held

Segment

Three months ended
March 31, 2013

Three months ended
March 31, 2014

Year ended December
31, 2013

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

Domestic wedding

2,005

2,143

9,857

Hotel business

147

183

758

Overseas business

565

585

2,932

Total

2,717

2,911

13,547business2) Orders received

Segment
Domestic wedding

Three months ended
March 31, 2013

Three months ended
March 31, 2014

Year ended December
31, 2013

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

receivedbacklog(cases)(cases)(cases)(cases)(cases)(cases)

2,759

6,664

3,103

6,568

9,555

5,608

Hotel business

267

526

266

531

800

448

Overseas business

908

1,765

789

1,681

2,987

1,477

Total

3,934

8,955

4,158

8,780

13,342

7,533

business3) Sales volume

Segment
Domestic wedding

Three months ended
March 31, 2013

Three months ended
March 31, 2014

Year ended December
31, 2013

million yen

million yen

million yen

7,652

7,820

37,392

1,448

2,455

7,139

586

665

2,894

9,687

10,94247,426business
Hotel business
Overseas business
Total

Notes: 1. Classification of reportable segments has been changed since the first three months ended
March 31, 2014. The figures for the three months ended March 31, 2013 and for the full year
ended December 31, 2013, have been readjusted to the new reportable segments.
2. Starting from the first three months ended March 31, 2014, those numbers of weddings held,order received and order backlogs at the facilities in partnership with the Company have
newly been added, and therefore the figures for the three months ended March 31, 201312

and for the full year ended December 31, 2013, have been readjusted and reported
accordingly.
3. Inter-segment transactions have been eliminated from the amounts shown above.
4. The above amounts do not include consumption tax.

13