Presentation Material of Results for Fiscal Year Ended September 2022
and Medium-Term Management Plan

November 4, 2022
Decollte Holdings Corporation

Table of Contents

1

Results for Fiscal Year Ended
September 2022

P3

2

Growth Strategy and Medium-Term
Management Plan

P18

3

Company Highlights

P34

4Structural Changes in the Wedding
Industry

P44

5

Risk Information

P50

6

Appendix

P52© Decollte Holdings Corporation2

Results for Fiscal Year Ended
September 2022

© Decollte Holdings Corporation

3

Performance Summary (Fiscal year ended September 2022)

Achieved record-high revenue (+15.9% YoY) and operating profit (+58.0% YoY)
despite surge in COVID-19 cases in the second and fourth quarters.
Full-year
results of
FYE Sep. 2022

Full-year
results of
FYE Sep. 2021

YoYchangeRevenue

5,322

4,592

+15.9%

Gross profit

2,224

1,965

+13.2%

Operating profit

1,377

871

+58.0%

985

871+13.0%

1,018

574+77.1%

298

0

ー

0

59

ー

720

515

+39.9%(Millions of yen)

Operating profit excluding impactof sales of fixed assets*1

ProfitAmong the profit, gain on sale of fixed
assets*2
Among the profit, profit fromdiscontinued business*3

Among the profit, profit fromcontinuing operations

Full-year
forecasts
Comparisonforto forecasts
FYE Sep. 2022

5,490

96.9%

1,427

96.5%

895

113.7%*1: Profit deducting the revenue and expenses generated from sales of fixed assets from operating profit.
*2: Profit from fixed assets sold in the second quarter of FYE Sep. 2022.
*3: Profit from ceremony business transferred in the first quarter of FYE Sep. 2021. See page 8 for breakdown.
⚫
⚫

⚫
⚫

Revenue increased 15.9% year-on-year due to the growth of existing photo wedding studios (+7.0% year-on-year) and new studio openings since
the previous fiscal year
For photo weddings, average customer spend largely increased by 10.9% from previous fiscal year and revenue decrease remained at 3.1%
compared to the forecast in spite a decrease in the number of new customers resulting in a decrease in the number of photo shootings with theimpact of the sixth and seventh waves (in second quarter and fourth quarter, respectively) of COVID-19 infections.
While there were personnel and advertising expenses, new studio opening expenses and other cost increases associated with business expansion,both revenue and all profit items posted a record-high.
Operating profit excluding impact of sales of fixed assets conducted in the current fiscal year was 985 million yen (+13.0% year-on-year), profit
from continuing operations was 720 million yen (+39.9% year-on-year)© Decollte Holdings Corporation
4

Change in Revenue from Previous Fiscal Year

Revenue for the current fiscal year totaled 5.32 billion yen(+15.9% YoY).
Growth of new photo wedding studios and existing studios (+7.0% YoY)
contributed significantly to revenue growth.
(Millions of yen)

6,000

286
5,000

43

149

549

5,322

4,000

4,592

3,000
FYE Sep. 2021
Revenue

New photoweddingstudios

Increase inrevenue of existing
photo wedding
studios

HAPISTA

Photo wedding
studios adjacentto ceremony halls
closed(FYE Sep. 2021)

New photo wedding studios(month opened):

FYE Sep. 2021 Jul. 2021, Aug. 2021/FYE Sep. 2022 Mar. 2022, Sep. 2022

Existing photo wedding studios:

Aggregate studios that have been operating for 13 months or longer

Photo wedding studios adjacentto ceremony halls closed:

Studio TVB Horie (studio with wedding chapel) closed in April 2021

FYE Sep. 2022
Revenue© Decollte Holdings Corporation5

Change in Operating Profit from Previous Fiscal Year

Operating Profit for the current fiscal year totaled 1.37 billion yen (+58.0%
YoY).
Largely increased with gain on sales of fixed asset in addition to therevenue increase centering on the studio business.
(Millions of yen)

2,000

168
437

145
108

1,500

95
585

1,000

1,377
871

500

FYE
Sep. 2021
Operating
IncomeProfit increase
Profitdue toincrease due torevenuesale of fixed
increase
assets

Personnel
expenses

Depreciation

Advertisingexpenses

Other

FYE
Sep. 2022
Operating
IncomeProfit increase due to revenue
increase:
Profit increase due to sale of
fixed assets:
Personnel expenses:

Estimated amount of profit increase after accounting for change in travel and transportation
expenses associated with merchandise purchasing, costume repairs, shooting, etc.
Increased due to sale of Decollte Asakusa Building (included in operating profit as otherincome in IFRS)
Increased due to proactive hiring to match accelerated studio openings

Depreciation (rent expenses):Rent expenses of studio properties increased with opening of two wedding photo studios infiscal year ended September 2021 and two wedding photo studios and two HAPISTA studios
in fiscal year ended September 2022

© Decollte Holdings Corporation

6

Analysis of Key Cost Variables

Personnel expenses increased due to increased hiring and training to matchstudio increase and accelerated pace of openings.

Increased advertising expenses but maintained flexible control in lightof the COVID-19 infection status.
(Millions of yen)

3,000

[Advertising Expenses]
Advertisingexpenses

455

2,500
Advertisingexpenses
346

2,000

Depreciation
648• Expenses were lower in the FYE Sep. 2021 due to longterm state of emergency declarations, etc.
• In the FYE Sep. 2022, in addition to increased studios, weare more active with the easing of various activity
restrictions. Ratio to revenue increased from 7.5％ in theprevious fiscal year to 8.6％, but not to the point ofreaching pre-pandemic level.
+108 million yen

Depreciation
503[Depreciation (mainly rent expenses of studio properties)]• Increased due to increased studios (+4 studios from a year
ago)
(rent expenses are included in depreciation in IFRS)

1,500

1,000

Personnel
Personnel
expenses
1,619

expenses
1,791

500

＋145 million yen[Personnel Expenses]• In spite of increase with increased personnel due toincreased studios (+4 studios from a year ago), ratio torevenue declined from 35.3% in the previous fiscal year to33.6%.
＋168 million yen

0Full-year of
FYE Sep. 2021

Full-year of
FYE Sep. 2022
© Decollte Holdings Corporation

7

Profit from Continuing operations

Profit of 1,010 million yen includes 720 million yen profit from continuing
operations.
Absorbed increased cost while affected by COVID-19 infections resulting in
profit increase of 200 million yen and 39.9% YoY.
(Millions of yen)

1,200
1,000

[Breakdown of Discontinued Operations Profit for FYE Sep. 2021]- Gain on sale of ceremony business*- Revenue from ceremony business- Other profit from studio closure
Total

29 million yen
13 million yen
15 million yen
59 million yen

800
600

298

59

400
200

Gain on sale of fixed assets(Decollte Asakusa Building)recorded as other income.

515

720

0
Full-year of
FYE Sep. 2021

Full-year of
FYE Sep. 2022

Profit from sale of fixed assets
Profit from discontinued operations (ceremony business)

Profit from continuing operations (studio business and fitness business)
Note: The ceremony business was transferred at the end of November 2020.

© Decollte Holdings Corporation

8Performance Summary (4Q FYE Sep. 2022 [Consolidated])

The number of photo shootings at existing studios decreased year-on-yearwith the impact of the seventh waves of COVID-19 infections, but record-highrevenue was posted as the fourth quarter with increased average customer
spend and contribution of new studios.
(Millions of yen)

4Q
FYE Sep. 2022

4Q
FYE Sep. 2021

YoYchangeRevenue

1,245

1,010

+23.2%

Gross profit

424

327

+29.7%

Operating profit

102

24

+313.1%

Profit198

32+512.7%⚫ Revenue increased 23.2% year-on-year due to an increase in average customer spend(+22.9% YoY) resulting from factors including introduction of the “Live Retouch” service in
May 2022, growth of existing studios (+10.8% YoY) and contribution of new studios opened
last fiscal year and this fiscal year in spite of the number of photo shootings at existingstudios in the fourth quarter decreasing by 9.8% year-on-year with the impact of theseventh wave of the infections⚫ Major increase factors of average customer spend are as follows
Increased average spend due to introduction of Live Retouch service (+9.1% YoY)
Recovery of resort studios in Okinawa, Hokkaido, etc. (+12.3% YoY)
⚫ Profit increased 313.1% year-on-year due to the record-high revenue absorbing the cost of
two new studio openings, the same number of openings as previous fiscal year
© Decollte Holdings Corporation

9

Change in Quarterly Results (Adjusted Operating Profit)

Record-high 4Q revenue despite the impact of the seventh wave of infections.
Adjusted operating profit also recovered to the pre-pandemic level despite being
affected by cost of studio openings.
Revenue

Adjusted Operating Profit(Millions of yen)

1Q
(OctDec)

2,000

1,368

2,000
(JanMar)

1,554

1,000

947

945

936

3Q

2,000
1,000

1,270

1,032

2Q

4Q
(JulSep)

1,210

1,490

393

1,000

158

0

3Q

2,000

(AprJun)

1,000

416

0

1,077

942

1,010

1,245

1,000

4Q

2,000

(JulSep)

1,000

241

0

Head office(125)
expenses
Other income/expenses

FYE
Sep. 2019

FYE
Sep. 2020

FYE
Sep. 2021

FYE
Sep. 2022

544

618

608

(118)

(115)

(134)

13

(0)

168

186

131

(132)

(120)

(129)

0

Head office(108)
expenses
Other income/expenses

0

Note:

559

Head office(121)
expenses
Other income/expenses

0
2,000

1,000

2,000
(JanMar)All studios closed
temporarily
due to state of
emergency declaration

2,000

Head office(122)
expenses
Other income/expenses

Recovery to
pre-pandemic level
despite long-term state of
emergency declaration

0(AprJun)1Q(OctDec)

1,000
0

2Q

1,434

1,381

Impact of higher
advertising/
personnel expenses(Millions of yen)

Record-highrevenue

FYE
Sep. 20194
All studios closed Impacted by state of
temporarily due toemergency
state of emergency
declaration anddeclaration
studio opening costs

47
(100)

435
Higher profit
level than prepandemic

370

479

(112)

(115)

2

(0)
Impacted by studio
opening costs

254

161

219

(114)

(135)

(115)

(1)

(1)

FYE
Sep. 2020

FYE
Sep. 2021

FYE
Sep. 2022

Revenues are for continuing operations as of end of September 2022 (studio business and fitness).
Adjusted operating profit = operating profit + head office expenses + (other expenses - other income)Head office expenses: Expenses related to head office functions such as the Finance and Administration Department© Decollte Holdings Corporation

10

Change in Performance KPIs: YoY Comparison of Existing Studios

Average spend largely increased partially due to introduction of Live Retouchand increased number of costume used.
Average spend in cumulative total largely increased by 10.9% year-on-year Net
sales of existing studios increased by 7.0% year-on-year in cumulative total.
YoY change in performance of existing studios
FYE Sep. 2019

FYE Sep. 2020

FYE Sep. 2021

160.0%All studios temporarily closed(Apr.-May 2020)

120.0%
100.0%
80.0%
60.0%(FYE Sep. 2019
cumulative)(FYE Sep. 2020
cumulative)(FYE Sep. 2021
cumulative)

40.0%

Net sales: 105.9%

Net sales: 75.9%

Avg. spend:
100.4%
Number ofcases: 105.5%

20.0%
-

Oct.
2018

Jan.
2019

Apr.
2019

Jul.
2019

Net sales of existing studio sales
Average spend
Number of cases

All studios temporarily closed
previous year

140.0%

FYE
Sep. 2023

FYE Sep. 2022

(FYE Sep. 2022
cumulative)(Oct. 2022
provisional)

Net sales: 124.9%

Net sales: 107.0%

Net sales: 117.8%

Avg. spend:
102.2%

Avg. spend:
113.9%

Avg. spend:
110.9%

Avg. spend:
122.7%

Number ofcases: 74.3%

Number ofcases: 109.6%

Number ofcases: 96.4%

Number ofcases: 96.0%

Oct.
2019

Jan.
2020

Apr.
2020

Jul.
2020

Oct.
2020

Jan.
2021

Apr.
2021

Jul.
2021

Oct.
2021

Jan.
2022

Apr.
2022

Jul.
2022

Oct.
2022

Growth drivers of existing studios

Avg.
spend

 Effect to increase average spend due to increased use ofLive Retouch introduced in May 2022 largely contributed
 Average cost of costumes continues to rise Successfully
implemented measures to increase options by increasing
variety of costumes in addition to increasing the numberof costumes used per couple.
 We will continue to implement measures to improve theaverage customer spend by offering a full range of productsthat go beyond just photography

Numberof cases Order securing activities affected by the sixth and seventh
waves of COVID-19 infections
 While average spend rose due to two-costume plans ofJapanese-style and Western-style and studio + location
shooting, longer shooting hours impacted the number ofphotography contracts
 Recovery of demand for pre-shooting and separate
shooting is assumed with resuming wedding ceremonies
and receptions with the transition to coexist with COVID-19

Note: The above graph shows year-on-year change in the photo wedding service at existing studios. Existing studios are defined as studiosthat have been operating for 13 months or longer. April and May 2021 are omitted due to the temporary closure in the preceding year.

© Decollte Holdings Corporation

11

Consolidated Cash Flow (CF)Operating CF increased 1,150 million yen due to revenue growth during thebusy seasons.
Balance of cash and deposits increased despite negative financial CF due to
600 million yen of purchase of treasury shares, etc.
(Millions of yen)

3,000

198

1,288

2,000

1,152

1,350

1,288
1,000

Balance of cash anddeposits at end of
FYE Sep. 2021
(end of Sep. 2021)

Operating CF

Investment CF

Financial CF

End of FYE Sep. 2022
Balance of cash anddeposits(End of Sep. 2022)

Investment CF: Proceeds from transfer of Decollte Asakusa Building (614 million yen)
Payment for guarantee deposits, etc. accompanying new studio openings of Namba Parks and other studios(178 million yen)
Payment to acquire property, machinery and equipment to open Namba Parks and other studios(237 million yen)

Financial CF: Purchase of treasury shares (601 million yen), repayment of short-term debt (243 million yen)
Payment of lease liabilities (rent for studio properties) associated with lease contracts (440 million yen)
© Decollte Holdings Corporation

12

Summary of Consolidated Financial Position Statement (vs. Previous Fiscal Year-End)

Right-of-use assets and lease liabilities equivalent to studio rents increased
due to new studio openings.
Despite the increase in profit, purchase of treasury shares limited increasein equity.
(Millions of yen)

End ofSep. 2022

End ofSep. 2021

ChangeEnd ofSep. 2022

End ofSep. 2021

Change

1,350

1,288

62

Short-term borrowings

258

243

15

Trade and otherreceivables

222

206

15

Lease liabilities

443

375

67

Other

150

134

15

Other

1,142

1,115

26

1,723

1,629

93

1,844

1,735

109

938

801

137

Borrowings

3,126

3,344

-218

Right-of-use assets

3,735

2,568

1,167

Lease liabilities

3,101

2,005

1,095

Goodwill

5,635

5,635

0

259

240

18

Other

554

517

37

Total non-current liabilities

6,486

5,590

896

Total non-current assets

10,865

9,523

1,341

Total equity

4,257

3,827

429

Total assets

12,588

11,152

1,435

Total liabilities and equity

12,588

11,152

1,435

Cash and cash equivalents

Total current assets
Property, machinery andequipment

Total current liabilities

Other

Right-of-use assets, lease liabilities : Increased due to opening of new Studio TVB Namba Parks and Studio 8 Nagoya Ekimae studio, decreased due to lease
payments under lease contracts
Borrowings: Decreased due to partial repayment of corporate loan concluded in December 2020
Equity: Decreased due to purchase of treasury shares (600 million yen), increased with retained earnings (1,018 million yen)<Regarding right-of-use assets and lease liabilities recognized in connection with lease contracts, etc.>
In accordance with IFRS 16 “Leases,” when we enter into a lease contract for leased property (mainly for studios), the total discounted cash flows of the total future rental payments are recognized as a lease liability, and also our “right of use” isrecorded as a right-of-use asset.
<Regarding the high ratio of goodwill to total assets>
Since our group prepares its consolidated statement of financial position in accordance with IFRS, it is not required to amortize this goodwill under the current standards. However, the company has recorded 5,635 million yen as goodwill in non-current
assets, which accounts for 44.8% of total assets (as of end of September 2022).
The recoverable amount of the cash-generating unit or group assets containing the goodwill as of the end of the consolidated fiscal year ended September 2022 is significantly higher than the carrying amount. Therefore, even if the key assumptions
used for the impairment test were to change within a reasonable range, we believes it is unlikely that the recoverable amount of the cash-generating unit or group assets would be less than the carrying amount. We believe that even if the growth rateover the next five years were zero, the recoverable amount would still be well in excess of the carrying amount of the assets of the cash-generating unit or group assets containing the goodwill, and therefore an impairment loss is not probable.

© Decollte Holdings Corporation13

Forecasts for FYE Sep. 2022 Part 1 (Comparison with Previous Fiscal Year)

Revenue of 6.92 billion yen (+30.2% YoY) and operating profit of 1.23
billion yen (practically +25.2% YoY) with opening of multiple HAPISTA
studios in addition to growth of the photo wedding business.
(Millions of yen)

Forecasts forResults of
FYE Sep. 2023 FYE Sep. 2022

YoYchangeRevenue

6,928

5,322

+30.2%

Gross profit

2,748

2,224

+23.5%

Operating profit

1,233

1,377

-10.4%

Operating margin

17.8%

25.9%

Operating profit excluding effect of sale of
fixed assets*1

1,233

985

Operating profit excluding gain on sale of
fixed assets

17.8%

18.5%

Profit735

1,018-27.7%

Profit excluding gain on sale of fixed
assets*2

735

720

+2.1%

+25.2%*1 Profit deducting the revenue and expenses generated from sales of fixed assets conducted in thefiscal year from operating profit for the fiscal year ended September 2022
*2 Profit deducting the gain on sale of fixed assets conducted in the fiscal year for the fiscal year ended
September 2022

⚫ We forecast revenue increase of 30.2% year-on-year with effects of new photo wedding andanniversary photo studios and growth of existing studios. In spite of increase of upfront
investments accompanying multiple anniversary photo studio openings for expenses, we
forecast operating profit to practically increase by 25.2% year-on-year when excluding gainon sale of fixed assets posted previous fiscal year.

© Decollte Holdings Corporation

14

Forecasts for FYE Sep. 2022 Part 2 (Major Initiatives in FYE Sep. 2023)

Continue openings of photo wedding studios in metropolitan areas.
Full-fledged multiple studio openings by accelerating openings of HAPISTA
for anniversary photo services.
[Photo Wedding Services] With full-year operation of studios opened previous fiscal year as well as growth of existing studio sales, weplan 26.1% year-on-year increase in net sales and 26.4% year-on-year increase in operating profit* Average customer spend is forecasted to continue to increase against a backdrop of established trend ofincreased number of costumes used, increased usage ratio of Live Retouch and increase in domestic resort
demands
 The plan is to open three new studios centering on metropolitan areas. Plan opening of a studio in front of
Yokohama Station, a location with good transportation access, in January 2023 and aim to expand trading
area in the eastern Kanagawa area as a satellite studio of existing studio in the Minatomirai district together
with two existing studios
 Expect operating margin to increase with sales growth surpassing the increase in personnel expenses
accompanying new studio openings following previous fiscal year and increase in advertising, sales
promotion and other expenses. Promote operation efficiency through measures including promotion ofcentralization of costume management that started partially in the previous fiscal year
[Anniversary Photo Service] Plan to increase net sales by 158.4% year-on-year by accelerating the pace of new studio openings from
two in previous fiscal year to six Profitability will temporarily decline due to upfront investments including strengthening operational
structure and human resource employment/development, increase of new studio opening cost in line withfull-fledged multiple studio openings, but solidify foundation for growth in the fiscal year ending September
2023 and beyond The cooperation effect with FamilyAlbum through capital and business alliance with mixi, Inc. is notreflected in the plan and initiatives will be carried out once detailed measures are decided* Comparison with income calculated by deducting the revenue and expenses generated from sale of fixed assets fromoperating profit in fiscal year ended September 2022

© Decollte Holdings Corporation

15

Status of Growth Measures

Concluded capital and business alliance contract with mixi, Inc.
as of September 28, 2022.
Proceed specific initiatives towards resolution of capital and business issues
as well as further growth.
[Overview of Alliance]
 mixi, Inc. acquired 1,532,400 shares of our common shares (27.03% of the total number of issued
shares) With the mutual use of management resources held by each company, and enhance services ofeach company as well as consider and develop new businesses[Aim of Alliance]
 Establishing synergistic partnership that leads to capital stability and business enhancement
through transfer of shares held by a fund
 Enhance customer’s lifetime value with cooperation with children’s photos and videos sharing app
FamilyAlbum and such that could become our strong customer attraction/communication channel[Image of Business Alliance][Specific Initiatives]
 For the first step, through partnershipwith SFIDANTE Inc. within the mixi
Group, initiatives on sales promotions
utilizing the company’s service of New
Year Cards on Smartphones as well as
on customer transfers and cooperation
has started in November 2022 (shaded
area in the chart on the right)
 The plan is to start cooperation as
specific measures are fixed in the
future© Decollte Holdings Corporation

16

Status of Growth Measures

One photo wedding studio and one anniversary studio opened in the fourth
quarter.
The Nagoya area will have a structure based on two studios and proceed withexpansion of trade area.
Studio 8 Nagoya Ekimae studio opened
Second studio in Nagoya opened aiming to expand trade area in
Chukyo Region (September 2022)• As a second studio in Nagoya City following Studio 8 Sakae studio,
which opened in 2011, it opened in front of Nagoya Station, thelargest terminal station in Chukyo Region• Nagoya Station, used by Shinkansen, JR, private railway and subway
lines, has good access from Gifu, Mie and other prefectures in addition
to locations within Aichi Prefecture and can attract customers fromwider areas• In order to promote customer acquisition in Chukyo Region that has
market size following Kanto and Kansai Regions, we aim to expand
trade area in the region together with the existing Sakae studio• Nagoya Ekimae studio with good transportation access has a large
area for customer service and dressing, and a modern studio thatallows photo shootings both in western and Japanese styles.
Customers can choose from each studio with its own features
according to their preferences•

Opening of HAPISTA Hirakata T-SITE studio
A studio opened in Hirakata City, Osaka (September 2022)•

First HAPISTA studio opening at a commercial complex

Renewed Studio AQUA Omotesando Shibuya
Renewed reaching the 4th year anniversary• Renewed two photo shooting studios within the studio as part ofrefresh investments of existing studios• A garden is installed within its housing studio creating a natural andopen space and indoor garden studio is covered with gravel creating
an atmosphere similar to location shooting

For the metropolitan areas, where there are strong customer bases,
we will continue to cultivate customers in the areas by openings
studios (terminal and satellite) in the future similar to Nagoya area
© Decollte Holdings Corporation

17

Growth Strategy and Medium-Term
Management Plan

© Decollte Holdings Corporation

18

Growth Strategy Summary

In addition to steady growth of the photo wedding business, we willcapture digital photo needs in the life event field and enhance life-timevalue of customers for growth.

1 Growth of photo wedding business

Strengths
 Can offer comprehensive,high-quality photo wedding
services– Ability to attract customers
through its website/social
media– Professional staff– Costumes, indoor studios Abilities to adapt to theenvironment and comprehend
customer needs

Now Centered on photo wedding
business
 Focused on major cities andlarge studios

Continuous new studio openings(increase in number)Continue to open two or more studios eachyear

Further capture wedding needs(increase average spend)
Develop attractive new plans
Improve studio productivity (reduce costs)
Improve efficiency through centralized operation,etc.

2 Accelerating expansion into the life
event field
Multiple studio openings of anniversary photoservices (HAPISTA)
To reach 50 studio structure by the end of
fiscal year ending September 2026
Enhance life event field other than wedding
Enhance life-time-value of customers by providing
various shooting experiences

Our target market
Life event photo market
Potential market

Over
1 trillion yen
Photo wedding market
Potential market

Over
186 billion yen
Actual market

Over
52.1 billion yen

Service development to cater for social trends
Coming-of-age ceremony photos, pet photos, etc.

Note: The calculation method of the market size in the life event photo market is described on pages 56 to 59.
Regarding the calculation method of the market size in the photo wedding market, the actual market is described on page 27 and the potential market is described on page 46.
We made these estimates using external statistics and other published data based on certain assumptions, but the actual market size may differ from the estimates due toinherent limitations in the statistics and estimates on which they were based.
© Decollte Holdings Corporation

19

Medium-Term Management Plan: Summary

Accelerate growth of anniversary photo business “HAPISTA” alongsidefurther growth of mainstay photo wedding service, creating the foundationof a life photo company.

Overview of mediumterm management plan

Medium-term management plan (FYE Sep. 2023 to FYE Sep. 2025)
From a leading company in the photo wedding market to a life photo company[Further growth of photo wedding service] Thrive to expand the market as a leading photo wedding company and aim for further growth by increasing the pace of new studio
openings
 While proceeding new store openings in the metropolitan areas, where there are strong customer bases, we will start developing
stores in regional cities in the fiscal year ending September 2025 and expand trading area
 We will promote initiatives towards streamlining studio operation such as centralization of online customer service in addition to part ofcostume management starting to be centralized[Creating the foundation to become a life photo company] Accelerate development of HAPISTA offering anniversary photos, expanding to 50 studios by the end of September 2026
 Accelerate moves toward commercialization of coming-of-age ceremony photography and consider entering into other life event fieldStudio opening plan

Revenue

Profit(Millions of yen)

Other*1

10,8052

HAPISTA

10,000

Photo wedding
2

1
1
5

(Millions of yen)

12,000

36

23

6,000

23

FYE
Sep. 2022

FYE
Sep. 2023

Profit from continuing business*3

1,000

6,928

800

5,322

298
1,301

600

11

20

Impact of sale of fixed assets*2

1,200

8,846

8,000

1,400

4,000
27

FYE
Sep. 2024

31

FYE
Sep. 2025

400

2,000
0

947
720

735

FYE
Sep. 2022

FYE
Sep. 2023

200
FYE
Sep. 2022
22/9期

FYE
Sep. 2023
23/9期

FYE
Sep.
2024
24/9期

Note 1: HAREI and coming-of-age ceremony photo service.
Note 2: Gain on sale of fixed assetbusinesss conducted in fiscal year ended September 2022
Note 3: Profit from continuing operations the impact of gain on sale of fixed assets.

FYE
Sep.
2025
25/9期

0

FYE
Sep. 2024

FYE
Sep. 2025© Decollte Holdings Corporation

20

Medium-Term Management Plan: P&L Summary

Revenue growth rate of 22-30% per year due to accelerated studio openings.
operating profit growth rate*4 of 25% to 35% in spite of investments
accompanying new studio openings.

(Millions of yen)
Revenue
Operating profit

FYE
Sep. 2022(Actual)
5,322
985 *3

FYE
Sep. 2023(Plan)

FYE
Sep. 2024(Plan)

FYE
Sep. 2025(Plan)

6,928

8,846

10,805

1,233

1,582

2,136

Operating margin

18.5%

17.8%

17.9%

19.8%

Profit

1,018

735

947

1,301

Continuing operations (studios, fitness)*1

720

735

947

1,301

Impact of sale of fixed assets*2

298

ー

ー

ー

19.1%

10.6%

10.7%

12.0%

Revenue growth rate

30.2%

27.7%

22.1%

Operating profit growth rate*4

25.2%

28.3%

35.1%

2.1%

28.9%

37.3%

Profit margin

Profit growth rate from continuing operations*4

Note 1: Continuing operations is the aggregate of gains and losses arising from studio business and fitness, excluding gain on sale of fixed assets.
Note 2: Gain on sale of fixed asset conducted in fiscal year ended September 2022 is calculated as revenue from discontinued business
Note 3: Profit deducting the revenue and expenses generated from sales of fixed assets from operating profit of fiscal year ended September 2022
Note 4: Calculates the growth rate of operating profit and profit from continuing operations excluding gain on sale of fixed assets.

© Decollte Holdings Corporation

21

Medium-Term Management Plan: Photo Wedding Service

For the time being, we will step up studio openings in major metropolitan
areas to capture growing demand in key markets.
We will maintain an operating margin above 19% and a high growth rate
ranging from 20-26%.
FYE
Sep. 2022

FYE
Sep. 2023

FYE
Sep. 2024

FYE
Sep. 2025

Revenue
Revenue growth
rate

5,057

6,377

7,466

8,490

26.1%

17.1%

13.7%

Operating profit*

992

1,255

1,543

1,905

Operating margin
Operating profit
growth rate

19.6%

19.7%

20.7%

22.4%

26.4%

22.9%

23.5%

(Millions of yen)

35

Studios in regional cities
New satellite studios

30

New terminal studios
Studios already opened

3

25

1
20

15

10

2

4

3

3

6

7

18

18

18

18

FYE
Sep. 2022

FYE
Sep. 2023

FYE
Sep. 2024

FYE
Sep. 2025

Business strategy

Change in number of photo wedding
service studios

 Step up opening new terminal and satellite studios in metropolitan areas, which havegreater potential for growth in the growing photo wedding market, to capture the growing
needs of the market
 Increase customer satisfaction by enriching photo wedding products beyond justphotography, and implement measures to increase average spend per customer
 Implement measures to generate steady revenue, such as utilizing resort studios, which havedifferent busy seasons and off-seasons from urban studios, to reduce the gap between theseseasons and improve activity rates throughout the year Optimize studio operation by centralizing online customer service and costume management toimprove productivity per employee and develop infrastructure for expansion into regional
citiesStudio revenue model* Profit deducting the revenue and expenses generated from sales of fixed assets from profit

 Terminal studios
Opened in terminal stations in metropolitan areas, annual sales around 400 million yen, studio
operating margin around 30%
 Satellite studios
Opened in suburbs along terminal studio lines, annual sales around 200 million yen, studio
operating margin around 30%
 Regional city studios (to be developed from FYE Sep 2025 onward)
Suited to small commercial areas following centralized operation, annual sales around 150 million
yen, studio operating margin around 30%© Decollte Holdings Corporation22

1 Growth of photo wedding business
Capturing Photo Wedding Needs by Expanding Nationwide (1/3)

Increasing both terminal studios and satellite studios in metropolitan
areas based on dominant strategy.
Dominant strategy in metropolitan areas

Terminal studio In metropolitan areas (capital area, Kinki
area, Chubu area, etc.), we plan to deploy adominant strategy by combining large-scaleterminal studios and satellite studios

Satellite studios

 We plan to open three new studios in thefiscal year ending Sep. 2023

Omiya
Shinjuku
Tachikawa

Kyoto

Asakusa

ShibuyaIn front of Yokohama
Station (planned)
Yokohama
Terminal Studio Revenue Model
Minatomirai

Capital Area

Kinki Area

Plan to open a satellite studio in frontof Yokohama Station in January 2023.
As in initiatives for Nagoya area, wewill open a studio in front of
Yokohama Station, a location withgood transportation access, in an aim
to expand trade zone in Eastern
Kanagawa area together withexisting Yokohama Minatomirai
studioNote: The operating margin in the revenue model is basedon information as of September 30, 2022, before
factoring in the allocation of head office expenses.

Kobe Umeda

Nara

Namba

Annual sales: Around 400 million yen
Operating margin: Over 30% (vs. sales)
Studio opening costs : Around 100-120 million yen
Payout period: Around 12-18 months

Satellite Studio Revenue Model
Annual sales: Around 200 million yen
Operating margin: Over 30% (vs. sales)
Studio opening costs : Around 70-90 million yen
Payout period: Around 12-18 months

Leading candidate stations for
opening studios in metropolitan area
Shinagawa, Chiba, Ikebukuro, Nihombashi,
East Shinjuku, Ginza, Ueno, Kawasaki, Machida,
Funabashi and Kashiwa, etc.

© Decollte Holdings Corporation23

1 Growth of Photo Wedding Business
Capturing Photo Wedding Needs by Expanding Nationwide (2/3)

Promote opening studios in regional cities by lowering studio opening
costs through the use of centralized operation.
(FYE Sep. 2025 onward)
Studios in Regional Cities As the number of studios increases, customer service tasks,
costume selection, etc. are gradually being converted tocentralized operations through the use of online systems.
Our policy is to ensure high profitability by reducing theresources required by studios, including the number of
employees and amount of space per studio

Integration of sometasks throughcentralized operations

Examples of leading candidate locations for
opening studios in regional cities〇 Candidate locations equivalent to metropolitan area
terminal studios (sales of over 200-300 million yen)
Sapporo Station, Hiroshima Station, Sendai Station〇 Other candidate locations (sales of 100 million yen or more)

FukuokastudioFuji studio

Metropolitan area

Okayama, Takasaki, Utsunomiya, Hamamatsu, Shizuoka,
Kitakyushu, Mito, Kumamoto, Niigata, Kanazawa,
Takamatsu, Matsuyama, Kagoshima, etc.

Existing studio

Revenue model for studios in regional cities
Studiosin Regional Cities(candidate location)
Note:The operating margin in the revenue model is based on information as of
September 30, 2022, before factoring in the allocation of head office expenses.

Annual sales: Around 150 million yen
Operating margin: Over 30% (vs. sales)
Studio opening costs : Around 50 million yen
Payout period: Around 12-18 months© Decollte Holdings Corporation24

1 Growth of Photo Wedding Business
Capturing Photo Wedding Needs by Expanding Nationwide (3/3)

Developing attractive photography plans and opening studios in tourist
locations across Japan that attract many visitors to capture demand during
the off-season, and respond to growing domestic resort demands.
Resort-type studios
STUDIO SUNS (Okinawa)

STUDIO SOLA (Hokkaido)

Strategic significance of resort-type studios

Examples of leading candidate locations for
opening resort-type studiosGenerating demand during off-seasons for urban studios (summer and winter)– Using attractiveness of locations such as Hokkaido and Okinawa in summerImproving studio utilization rate by lengthening the peak busy seasons (cherry
blossom and autumn leaves seasons)– Responding to the difference in timing of cherry blossom and autumn
leaves seasons in summer resort areas, etc. by moving personnel fromurban studiosEnhancing photographers’ creativity and increasing photography plan options

Hokkaido: Biei (opened), Otaru, Hakodate
Capital area : Karuizawa (opened), Nikko, Kamakura, Atami
Tokai: Iseshima
Kansai: Biwako, Awajishima, Kinosaki, Onomichi
Kyushu: Nagasaki, Amamioshima
Okinawa: Okinawa (opened), Ishigakijima, Miyakojima© Decollte Holdings Corporation25

1 Growth of Photo Wedding Business
Capturing Diversifying Wedding Needs by Focusing on Photos (1/4)

Perceptions of marriage are changing faster amidst the pandemic.
The proportion of couples who choose not to have ceremony and reception
is increasing, with these couples continuing to account for over half of allstudio customers.
Survey on wedding ceremony plans of customers visiting studios
Photographic wedding ceremony (wedding photos only)

Wedding ceremony + reception

Wedding ceremony only

Undecided

No response

90%
80%
70%

60%
50%
40%
30%
20%
10%

0%

All studios temporarily closed

100%

Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May June July Aug. Sep.

2020

2021

2022

Market changes due to the pandemic

Our response to market changes

 The percentage of “photographic wedding ceremonies”(wedding
photos only) increased rapidly amidst the pandemic
Among our customers, the percentage of those who held ceremonies
and receptions declined from around 60% before the pandemic toaround 40%, while the percentage of those with wedding photos only
increased to around 45%

 Achieving continuous growth through adapting to the mindset ofcustomers during the pandemic, in addition to capturing the existing
segment of couples who choose not to have a wedding
ceremony/reception
 Expanding the product lineup to meet the needs of customers who do
not hold a ceremony or reception, such as packages with both

 Although the number of couples holding ceremonies and receptions ismaking a partial recovery, views on marriage are changing at a faster
pace, and photo wedding needs are increasing

Japanese-style and Western-style costumes, in-studio + onlocation shoots, and Photogenic Journey service
 Promoting the acquisition of contactless orders by introducing online
customer service before others during the pandemic, while also
improving the operational efficiency of photo planners© Decollte Holdings Corporation

26

1 Growth of Photo Wedding Business
Capturing Diversifying Wedding Needs by Focusing on Photos (2/4)

Aiming to further expand the photo wedding market and acquire moreclients by capturing demands from couples who use photography service ofwedding ceremony/reception service providers and couples who choose not
to have ceremony and reception by placing them as the main target.
Breakdown of Photo Wedding Industry (couples)*1

With
ceremony(386,000)

With a photoshoot on a
separate day(244,000)

Without a
photo shooton a separate
day(136,000)

Number of
marriages(586,000)

With photoshoot(64,000)
Without
ceremony(206,000)

Without photoshoot(141,000)

Photographed bya specializedcompany(82,000)
Photography *2
by wedding
ceremony/
reception service
providers(162,000)

The target market to be newly developed*3
Our current target market
Market size: 24.8 billion yen, 147,000 couples

Increasedfocus onwedding
eventsThe main target market to be newly developed(1) (With ceremony, without separate shoots) 136,000 couples
Changing viewsof wedding
ceremonies

Capturing the segment of couples who may choose not to have awedding ceremony by offering a full lineup of options centeredaround photos(2) (Provided by wedding ceremony/reception service provider)
162,000 couples
Attracting the segment of couples that place high importance on thewedding event and who are using the wedding hall or anothervendor for a photo wedding by meeting their needs with a full lineup
of services

Note 1: Figures as of 2018. Rounded down to the first decimal place.
We made these estimates using external statistics and other published data based on certain assumptions, but the actual market size may differ from the estimates due toinherent limitations in the statistics and estimates on which they were based.
Note 2: Calculated based on the results of Recruit Marketing Partners’ questionnaire survey “Zexy Kekkon Torendo Chosa 2018” (Zexy wedding trend survey 2018) on photography
service providers and the ratio of in-studio shoots to on-location shoots, in which the proportion of respondents using a wedding hall or other vendor was 66.3% and the
proportion using a specialized company was 33.7%. See pg. 55 for details.
Note 3: Price per photo shoot (169,000 yen) (= average of price per in-studio shoot [159,000 yen] and price per on-location shoot [176,000 yen], based on figures from “Zexy Kekkon
Torendo Chosa 2018” (Zexy wedding trend survey 2018) by Recruit Marketing Partners) x number of target couples (65,000 + 82,000 = 147,000). See pg. 55 for details.
Source: “Outline of Vital Statistics in Japan (2019) (final figures)” of the Ministry of Health, Labor and Welfare; “Zexy torendo chosa 2018” (Zexy wedding trend survey 2018) by RecruitMarketing Partners; “Kekkon sougou ishiki chosa 2018” (Comprehensive marriage awareness survey 2018) by Recruit Bridal Souken, Recruit Marketing Partners; “Nashi-kon ni
kansuru jittai chosa (2018/12/17)” (Fact-finding survey on marriages without ceremonies/receptions; Dec. 17, 2018) by Wedding Park© Decollte Holdings Corporation27

1 Growth of Photo Wedding Business
Capturing Diversifying Wedding Needs by Focusing on Photos (3/4)

Increasing prices and capturing needs by providing a wide range of services,
including activities (= experiences), with a focus on photos that cover all
wedding-related content.
Formats that continue to grow in popularity after the pandemic

Enhancing photo wedding packages and increasing prices

Q. Choose the wedding format(s) that you believe willcontinue to grow in popularity after the pandemic.

Expanding the options toprovide “photo weddings that
go beyond just photo wedding”(Respondents = 329 wedding industry workers; multiple responses allowed.)* 1
Wedding with family/relatives
only
家族婚、親族婚
Small wedding with30人未満の小人数婚
less than 30 people

66.0%

Photo wedding・Pre-shooting
フォトウェディング・前撮り

65.7%

New
normalニューノーマルOnline consultation
オンライン式場相談会

19.8%
19.1%

Online weddinghall tour
オンライン式場見学

17.9%

結婚式・披露宴のオンライン中継
Online streamingof wedding/reception

12.5%

二部制結婚式（前半は親族、後半は友人等）
オンラインブライダルフェア

10.9%

Chapelshoots8.8%
8.5%

二期間制結婚式（1回目は親族、2回目は友人等）
オンライン結婚式

While there is still demand for 6.7%
traditional ceremonies
オンライン引き出物
6.1%around photography,
and receptions,formats centered

3.6% needs, are a growing
which meetsオンライン披露宴受付
diversifying wedding
料理宅配
1.8%
presence
オンライン結婚報告

1.5%

特になし

1.5%

Traditional
オンライン婚約指輪・結婚指輪下見
ceremony/
ステイホームウェディング
reception

Dinner
party

Trips

11.9%

アウトドアウェディング



Photo
weddings

21.0%

Wedding ceremony for brideふたりだけの結婚式
and groom only

Onlineweddings

Familyphotos

67.5%

0.9%
0.3%

0.0%

Wedding
format with afocus onphotography

20.0%

40.0%

60.0%

Price Increases
The average price per wedding continues to increase(indexed by taking the fiscal year ended September 2017 as 100) *2

134.8

140.0

121.6

130.0
120.0
110.0
80.0%

Note 1: Source: Press release of Kufu Company (November 20, 2020).
Note 2: Comparison of average price per photography contract for studios thathave been open for 13 months (established studios) in each fiscal year.

100.0

104.0

104.4

106.7

FYE
Sep.
2018

FYE
Sep.
2019

FYE
Sep.
2020

100.0
FYE
Sep.
2017

FYE
Sep.
2021

FYE
Sep.
2022

© Decollte Holdings Corporation28

1 Growth of Photo Wedding Business
Capturing Diversifying Wedding Needs by Focusing on Photos (4/4)

Identifying changes in consumer demand for photography ahead of others,
developing services in response to these, and ensuring we don’t miss out on
capturing new needs (examples of new options).
Photogenic Journey (Trip + Photo Wedding) Allows couples to have a photo wedding while traveling tovarious places, satisfying the needs of couples who want toshoot wedding photos or take photos in beautiful locations
instead of having a wedding ceremony or going on ahoneymoon With the increasing popularity of domestic resorts due to thepandemic, there are increasing number of Photogenic
Journey at the resort-type studios
 Propose a new “Trip + Photo Wedding” to customers inJapan and overseas including limited-time studio
Public Photo Wedding (Online + Photo Wedding) This service features a combination of photo wedding andonline wedding, which provides “photos” and “experiences”
at the same time so that couples can have photos taken by aprofessional photographer and let their families, relatives
and friends know their marriages using photos showing
themselves dressed in a wedding costume

Family Photo Wedding (Family Members + Photo Wedding) Allows couples to create special memories by shooting photosof themselves in wedding costumes with their beloved families
 In addition to in-studio shoots, couples can choose on-location
shoots, etc.

Chapel Photo Package (Chapel + Photo Wedding) Formal photo wedding at achapel Renting a chapel allows
couples to have a family-only
photo wedding or a photowedding tailored to the brideand groom’s preferences We partner with over 40
chapels across Japan© Decollte Holdings Corporation29

2 Accelerating Expansion into the Life Event Field
Capturing New Consumer Needs by Developing Services According to Recent Trends (1/3)

Accelerating business development of HAPISTA and enhancing life event fieldother than weddings.
Increase the pace of new studio openings from FYE Sep. 2023 for full-fledged
multiple studio openings.
(Millions of yen)

FYE
Sep. 2022

FYE
Sep. 2023

FYE
Sep. 2024

FYE
Sep. 2025

173

448

1,136

2,063

158.4%

153.5%

81.7%

Revenue
Revenue growthrate
Operating profit

-9*1

-32*2

18

204

Operating margin
Operating profit
growth rate

-5.2%

-7.1%

1.6%

9.9%

-

-

974.4%

40

36

30

23

20

Business strategy

Changes in number of
Anniversary Photo Service Studios

 To strengthen our business in the life event field, we will accelerate the opening of HAPISTA
studios offering anniversary photo services (multiple locations have already opened), with atarget of 50 studios in cumulative total by the end of the FYE Sep. 2026, and make it our
second-largest revenue stream after photo weddings
 To provide photo services that meet the needs of customers who are not satisfied withconventional children’s photos and offer families happy experiences that encourage repeat
business (not limited to the Shichi-Go-San festival for 3-, 5-, and 7-year-olds)
 Accelerate the pace of new studio openings centering on metropolitan areas in fiscal year
ended September 2023 and beyond to solidify the revenue base during fiscal year ending
September 2024
 Even though the operating margin is low due to significant upfront costs through fiscal year
ending September 2024, the operating profit growth rate is expected to exceed that of the photowedding business in fiscal year ending September 2025 and beyond

Studio Revenue
Model*1 Profit deducting the revenue and expenses generated from sales of fixed assets from profit*2 Difference of -21 million yen for fiscal year ending September 2023 is recognized when
adjusting from Japanese GAAP to IFRS To develop a business model and brand image focused predominantly on major
metropolitan areas in the Kanto and Kansai regions during the current plan
period, then expand into regional areas later on
 Annual sales of around 75 million yen, studio operating margin of 30%

11
10

5

0
FYE
Sep.
2022

FYE
Sep.
2023

FYE
Sep.
2024

FYE
Sep.
2025

© Decollte Holdings Corporation30

2 Accelerating Expansion into the Life Event Field
Capturing New Consumer Needs by Developing Services According to Recent Trends (2/3)

Leveraging technology and expertise cultivated in the photo wedding
business to open studios and expand our high-quality anniversary photobusiness (HAPISTA), which takes ”natural” pictures of people.
Anniversary photo business that sets itself apart fromconventional family photography

Conventionalfamily photostudio Taking in-studio photos of children dressed up for
occasions such as a baby’s first shrine visit or the
Shichi-Go-San festival
 The angles, poses, etc. are more or less the samefor all families
 Studio lighting

Anniversary
photos that
capture “natural”
pictures of people(HAPISTA) Leveraging technology and expertise cultivatedthrough photo wedding business Creating original costumes and also offering onlocation shoots Using various arrangements to capture naturalexpressions in natural light as much as possible,
in addition to photo shooting of children in given
positions/poses

Future business development outlined in medium-term
management plan Transitioning to the development of multiple studios as the first step in
expanding our business into the field of life events other than weddings
 Accelerate the pace of new studio openings in fiscal year ending September
2023 and beyond and plan to open a total of 50 studios by the end of
the fiscal year ending September 2026
 As with existing studios, we will offer a wide range of options, high-quality
experiences, and photo services that leverage HAPISTA’s appeal
 We will increase the variety of costumes by including both Japanese- andWestern-style garments and also offer on-location shoots Using the human resource development system established for thephoto wedding business, we will train professionals who can flexibly
respond to children’s natural movements and expressions and provide
services that meet the needs of customers who are not satisfied withconventional children’s photos© Decollte Holdings Corporation31

2 Accelerating Expansion into the Life Event Field
Capturing New Consumer Needs by Developing Services According to Recent Trends (3/3)

Launched NALU photo service for coming-of-age ceremonies and begancommercialization.
Beginning preparations to resume services for foreign tourists once
restrictions on entry into Japan for foreign travelers are eased.
Coming-of-age ceremony photos
 Jointly developed a product with FuRyu
Corporation, which has the largest share of thephoto sticker machine market

 Before the pandemic, we established an office in Hong Kong and hired
local employees to conduct sales activities aimed at acquiring inboundtourist customers

 Developed a new, ground-breaking photoservice for coming-of-age ceremonies byleveraging the hair, makeup, dressing, andphotography techniques we have cultivated in
the photo wedding business and FuRyu
Corporation’s image adjustment technology
and young women-oriented marketing
capabilities

 Inbound tourist sales (sales from services provided in response to orders
by non-Japanese residents) were 93 million yen in the fiscal year ended
September 2019

 Customers themselves can adjust images
that are familiar to young women on thespot
It produces a natural finish suited tocoming-of-age ceremony photos which
differs from both photo sticker machines andcamera apps
It also supports more efficient image
adjustment after taking photos
Original
pictureEfforts to resume photo services for foreign tourists

NALU

Beautiful skinapp-styleprocessing With the assumption of the market to re-expand once again withease of restrictions on entry to Japan and yen depreciation,
preparations are made to expand once again the inbound business Aims a scale exceeding fiscal year ended September 2019 especially after
the re-expansion of entry from China

Print boothstyleprocessing

Pet Photography

Unadjusted

Degree of processing

Large Photo service focusing on pets with pictures taken at a studio madeavailable for the customer’s exclusive use or in various everyday situations(walking the dog, etc.)
 Trial in progress at HAREI Jingumae© Decollte Holdings Corporation

32

Future Outlook

Having sophisticated photo techniques at thecore, we aim to be a “Life Photo Company” thatprovides people with photos they will want tokeep forever and emotional experiences thatwill stay with them through services delivering

Life Photo Company

real value and that offers a place for creating
memories at different stages of life

Leading
photo wedding
company

Now

Leading
photo wedding
company

Growth of photo wedding business
Growth of anniversary photo businessNew businesses meeting new needs(coming-of-age ceremony photos, pet photos, etc.)© Decollte Holdings Corporation

33

Company Highlights© Decollte Holdings Corporation

34

Features and Strengths of Our Photo Weddings

Decollte has built an encompassing business model and operation dedicatedto photo weddings.
The result is being capable to achieve both reliable, high-quality services
and high profit margins.
1

Major competitive
factors

Customer
attraction

Photography trackrecordWord-of-mouth
reputation
SEO
Social media exposure

2

Contract
conclusion

Wide range of plans
High-quality photos
Reasonable prices

3

Costumeselection

4

Hair andmakeup5

Shooting

Professional staff specializing in photo weddings
Wide variety of
costumes andaccessories

Dedicated personnel
for meticulous hair,
makeup and attendant

Dedicated photowedding studios

We have built an encompassing proprietary model and operation from customer acquisition(over 90% via our website) to photo shoots.
We employ many in-house photographers and hair and makeup artists specializing in photo weddings.

Other photowedding companies
Wedding ceremony
and reception
companies

Dependent on
outsourcing

Dependent on other companies and freelancers for specialized professionals.
Even if in-house, operations are small with limited ability to attract customers.

Dependent on other companies and freelancers for specialized professionals.
Efficiency and productivity issues if existing facilities are used.

Dependent on outsourcing, haveefficiency/productivity issues

As a result, our photo wedding business is highly profitable, with an*operating margin* over 30% and a payout period of around 12 to 18
months after opening a new studio.
Note: Operating margin at studios, excluding head office expenses (expenses related to head office functions such as the Finance and Administration Department)© Decollte Holdings Corporation

35

Company Highlights: Summary

In-housing of online customer acquisition, professional staff, dedicatedfacilities and items, the sources of our photo wedding service’s competitiveedge. Scaling up through growth will solidify our competitive edge.
External environment of photowedding services• Professional staff who canconsistently provide high-quality
services are rare
• Studio and costumes that add
value to the service requirereasonable investment• Image is important to reassure
newlyweds who don’t want their
special experiences to be a
failureStronger foundation byscaling up
Greater effectivenessthrough in-housing
strategy

Our growth
Sales growthProfit growth

Increasecustomer
attraction

Increase ability
to generate
profits

Attractive dedicated facilities
and studios(foundation of competitive edge)

Sources of Decollte’s competitiveedge• Built a unique HR development
system, employ many
professionals in-house• In-house costume design andmanufacturing outsourcing,wide range of studio andcostume options• In-house website production
and other functions, strong
online customer acquisition andmarketing capabilities

IncreasedcompetitivenessIn-housing strategy













Professionals
Unique HR development system
Professionals’ sense of belonging
Stable project implementation

Qualitycontrol

Costcontrol

Costumes and items forphotography
Designed in-house, manufacturingoutsourced
Wide range of trendy options
Rental revenue with high turnover
Online marketing function
SEO measures
Diverse social media measures
Strong, agile ability to convey
information

Note: The professional positions are defined as the photographers and makeup artists.

© Decollte Holdings Corporation36

1 In-House Development of Professionals

In-House Development of Professionals

Decollte has a competitive number of professionals as permanent
employees based on our unique education program.
Secure many professionals

Our strength in hiring and retaining human resources

Number of professionals and planners*1(Persons)

1

Photo planners

400

Photographers and makeup artists

38

49

262

280

283

Sep. 2020

Sep. 2021

Sep. 2022

19

30

271

Sep. 2019200

0Unique education program◆ In addition to photographers and makeup artists, we have hiring
more “photo planners” in charge of customer service, including newcustomers, to allow the professionals to focus more on photography.
This has reduced the workload of the professional staff.

Photographers

Makeup artists

135

148

people*2

people*2

Have studio, on-location, andportrait photography techniques

Each artist has skills to set
hairstyles, apply makeup andhelp dress customers in western
dresses/tuxedos and kimonos.

Note 1: The number of persons as of the end of month.
Note 2: The number of persons as of the end of September 2022.

 We actively hire staff who have no experience and provide a
special photo wedding curriculum and education system sothat they can do almost all the work in about 2 years

2

A place to work hard and encourage eachother

 We provide a place to raise aspirations and aim for evenhigher heights through our unique environment that
employs many strongly independent photographers andmakeup artists as full-time employees

3

A place where professionals easily
demonstrate their originality

 Each of 24,000 couples of customers a year can choose aphotographer or makeup artist according to theirpreferences and the taste of the photos they want to take Each professional has Instagram and other social media
accounts where they can demonstrate and share theirindividuality and be rewarded by being personally selected© Decollte Holdings Corporation37

1 In-House Development of Professionals

Unique Professional Development System

We have built a unique educational curriculum that allows those who want
to be professionals to acquire many skills in a short period of time, insteadof the traditional teacher-apprentice system. It is directly linked tosuperiority in acquiring human resources.
Our professional development system, which can be said
to be the destruction of the apprenticeship system

Our unique educational program

Skill acquisition in about 10 years

Division of roles for each skill

Apprenticeship

Do not serve concurrently

TeacherApprentice

Photography

Hair &
makeup

Dressing

E1“Destruction of the apprenticeship system”
by Decollte’s unique educational system

Skill acquisition
in about 2 years

Acquire many skills
E2
One person
does

TeacherNew
graduate
employee

Photography

Hair &
makeup

Dressing

Employee

Training for new graduates
 2-year training programfor beginners
 Focus on wedding technique

Programoverview

Traditional industry practice (apprenticeship)E3

 Training on skills and knowledge associated with service
offering for each occupation (photographer, hair &makeup) By raising the level of training according to multiple
grades (E1 to E3) and implementing it in stages, it ispossible to efficiently raise the level according to theabilities of each employee
 At the stage of being able to respond to generaland standard requirements based on the
Inexperienced
instructions, manuals and training of superiors, or
during learning(1st year)
 Develop to the level of “knowing the necessary
skills”
 By “reviewing and mastering behavior”, this2nd yearcurriculum develops trainees to a level where theyon
can respond to general and standard demands ontheir own Nurturing to the level of “complete as a
5th yearprofessional” who can respond to difficult andoncomplicated demands on their own

Professionals
with many skills
 Studio and location shooting
 Kimono・Dress × Makeup・Dressing

High level homogenization of technique© Decollte Holdings Corporation38

2 In-House Development of Photo Shoot Facilities/Items (e.g., Costumes)

In-House Development of Facilities/Items (e.g., Costumes)

Taking advantage of our size (photo shooting for 24,000+ couples per year),
we produce our own costumes, indoor gardens, etc.
We generate cost competitiveness and increase earnings through in-housedevelopment of photo wedding facilities and items.
Advantages of in-house development of costumes
Our photographingbusiness size

In-house costume
production

24,000 couples a year Significant cost reduction
compared to purchasesfrom dressmakers
 Able to quickly introduce thelatest fashion to studios

Number of costumes
per couple
Number of rental
opportunities[Our designers]
Designs reflecting thecurrent trend
Delivery

Manufacturingoutsourcing

Rent costumes tocustomers

 Deliver added value
such as new collections
and popular designs=enhancecompetitiveness andimprove profitability
 Secure a source of revenue
from costume rental
 Short-term, high turnover

Sewing factories(overseas/domestic)

Advantages of dedicated photo wedding studios and indoor gardens Dedicated full-scale
photo wedding studios,indoor gardens, standalone chapels
 Having built many studios,
we are able to reduce
design, procurement andrenovation costs

 Able to shoot regardless of weather and climate,
reducing the risk of being unable to shoot photos
 Can be photographed immediately after hair andmakeup, eliminating the time and burden of travelingto and from the location at the customer side. Also
increases number of operations and productivity© Decollte Holdings Corporation39

3 In-Housing of Online Marketing Function

Our Ability to Attract Customers Through Online Search/Social Media

Attracting customers is key for photo weddings, which are special
experiences. We are strong in service websites and social media, the main
media customers use for selection.
Media used to select photo wedding services (%) and customer acquisition cycle
Social media and company service sites have highpercentages

SNS
Social media

47.4
35.0
29.0
27.6

30.6

結婚情報サイト
Bridalwebsites

Bridal
結婚情報誌
magazines
Friends/
友人・知人の紹介
acquaintances
挙式会場等のHP
Websites of
weddingvenues, etc.

Accumulation of positive reviews
Photo exposure

21.2
31.0
39.4

Other websites
その他Webサイト

Wedding halls
結婚式場の紹介••New customer

•

26.9
21.7
19.3

•
•
•

25.5

Narrowing downof potential
service providers

13.1
14.9
14.2

15.4
19.6
11.8
11.6

Collects information using
customer reviews, etc. on
websites and social media

Sharing/spreading••

Shares the experience withfriends through social media, etc.
Shares the experience with thewider community
Posts reviews on websites
Evaluation(satisfaction level)

Ease of access to studios
Compares photo samples
and websites•

The level of satisfaction based on
customer service, photo shooting,etc.

Our strength in online search

90

More than% of customers are
acquired through our website
 Developed the website production
team in-house Ranks high in each region in keyword
searches using words such as photowedding, pre-shooting

Ranking high in Google search(Exa(Example)
mple)“Tokyo photo wedding”“Osaka photo wedding”

1st
1st

“Tokyo pre-shooting”

2nd“Osaka pre-shooting”

1st(As ofof October25, 2021)(As
April 16,
2021)

13.0
12.0
10.6
11.3

10.1
3.1
3.4
6.1

5.6

Comparison of potential
service providers

2018
2019
2020
2021

•
•
•

Application and use(photo shoot)Compares costumes/studios
Evaluates staff
Compares prices

Source: Zekushi Kekkon Torendo Chosa 2021 Shutoken (Zexy Wedding Trend Survey 2021 Metropolitan Area) by Recruit

Improved competitivenessin attracting customers
Reduced spending on advertising media© Decollte Holdings Corporation40

3 In-Housing of Online Marketing Function

2
High Level of Customer Satisfaction
for Our Services

Our services are rated highly by users. The sharing of positive experiences
through websites 1and social media by users directly results in better
recognition.
0

Strong customer satisfaction for our services

当社 B社 F社 G社

Evaluation of Decollte based on Google user reviews*only for some studios

当社(Average score out of the highest score of 5)

5

4.9

4.8

4.8

B社

F社

G社
4.8

4.7

4.8

4.7

4

3
2
1
0

Decollte B

当社 B社

F

F社

G Decollte I

G社 当社

Yokohama

I社

K

K社

Kyoto

B Decollte E

B社 当社 E社

A

A社

Shinjuku

F Decollte E

F社 当社 E社

C

C社

Asakusa

F Decollte E

F社 当社 E社

F

F社

ShibuyaE Decollte A

E社 当社 A社

F

F社

NagoyaO Decollte F

O社 当社 F社

M

M社

P

P社

FukuokaNote: Evaluation as of October 3, 2022.
The above seven studios were selected based on the descending order of the number of reviews posted(Yokohama: 1,539, Kyoto: 1,394, Shinjuku: 943, Asakusa: 798, Shibuya: 654, Nagoya: 551, Fukuoka: 509).
The competitors listed are companies most frequently mentioned by customers as their potential selection in our September 2022 preliminary customer survey.
© Decollte Holdings Corporation

41

Our Competitive Edge

Efficient Staffing to Cater for Busy Seasons and Off-Seasons

While there is a great gap between the busy seasons and off-seasons for
weddings, there is little difference between days of the week.
Efficient staffing also enables us to capture demand during busy seasons.
Percentage of photography contracts in different months(Shoots)

Number of photography contracts on different days
(Shoots)

Number ofphotography

当社施行件数contracts
by Decollte

2,500Percentage ofphotography contracts
当社施行件数割合
by Decollte

Number ofphotography

Ratio to the total number of

wedding ceremonies
結婚式実施割合

conducted in the year

Busy season

25%

当社施行件数contracts

6,000

by Decollte

Percentage ofphotography contracts
当社施行件数割合
by Decollte

Ratio to the total number of

wedding ceremonies
結婚式実施割合

conducted in the year

60%

53.5%

Busy season
2,000

20%
16.2%

1,500

50%

4,000

40%

15%
11.0%
10.6%
9.5%
9.3%

10.2%

9.3%
8.8%
8.6%
8.5%

1,000

500

5,000

6.9% 7.2% 7.0% 7.0%
5.7%

7.7%7.8%

7.8%

2,000

6.0%

11.6%
6.6%

5%

1.5%
0%

Jan.
Oct. 11月
Nov. 12月
Dec.
1月 Feb.
2月 Mar.
3月 Apr.
4月 May5月 June
6月 July
7月 Aug.
8月 Sep.
9月 10月13.0% 13.9%

14.4%
12.7% 13.6%

1.5%

1.5%

1.5%

20%

16.3%

1,000

3.7%

0

30%

10%

9.0%
8.1%
7.2%

31.3%

3,000

5.6%

3.4%

4.4%

0
Mon.
月

Tue.
火

Wed.
水

Thu.
木

Fri.
金

Sat.
土

Sun.
日

10%

0%

Holiday
祝日(excluding
weekends)

Note:

Ratio of wedding ceremonies conducted to the total number of wedding ceremonies based on survey results in metropolitan areas = (number of wedding ceremonies
conducted based on survey results in the metropolitan areas / number of surveys conducted in the metropolitan areas) / (1 – ratio of no response, etc.)
The survey results showed that 6.0% of respondents had their wedding ceremony between Monday and Thursday. Based on this, it is assumed that 1.5% of respondents
had their wedding ceremonies on each of those days.
The number of weddings conducted is the average for the month/day during a period between April 2018 and March 2020.
Source:Zekushi Kekkon Torendo Chosa 2020 (Zexy Wedding Trend Survey 2020) by Recruit Marketing Partners© Decollte Holdings Corporation

42

Our Competitive Edge

Change in Operation Status/Productivity

Sales per photographer grew 15.4% YoY despite increasing headcount.
We increased the number of photo planners (customer service) andoperational efficiency through online customer service.
Sales per photographer and number of photography contracts

Change in percentage of online orders to total contracts

Sales perphotographer

Shoots per
photographer

Online customer service

40%
35%

(Shoots)
60

1Q

53

51

52

(Millions of yen)
52
15

30%

10

25%

5

20%

0

15%

15

10%

10

5%

40
20

11.3

11.3

11.8

11.9

0
60

2Q

38

20

60

7.8

60

10.0

42

8.7

34

7.5

5
0

41

15
10

11
3.1

40
20

8.0

All studios closed temporarily
due to state of emergency declaration(Apr.-May 2020)
46
39

40
20

8.0

0

4Q

37

40

0

3Q

38

9.0

10.1

5
0

34

34

34

7.7

7.5

8.7

0
FYE
Sep. 2020

FYE
Sep. 2021

FYE
Sep. 2022

31%
28%

26%

30%
27%

29%

28%

30%

25% 26%21%2021
Oct. Nov. Dec. Jan. Feb. Mar. Apr.

2022
May June July Aug. Sep.

Increased operational efficiency through online customer
service Future centralization will improve studio operations, reducing
costs
 Captured new customer segments (consultations bycustomers living far or after the close of studios)

15

10
5
0

FYE
Sep. 20190%29%

Establishment of infrastructure
for opening studios in regional cities© Decollte Holdings Corporation

43

Structural Changes in the Wedding Industry© Decollte Holdings Corporation

44

Proportion of Newly Married Couples Having Photo Weddings

The percentage of couples having photo weddings is high at 52.8%.
The percentage who have photos taken by specialized companies like us is25.1%, so there is considerable room for growth in the future.
Number of couples who used specialized companies*2

Number ofcouples who did
not have a photowedding
276,000 couples(47.2%)

147,000 couples (25.1%)

Photos on dates other than thewedding day (separate shoots)+
Photos for segment of couples
who choose not to have awedding ceremony/reception
Had photo weddings*1

Number of marriages
in 2018
586,000 couples

309,000 couples 52.8%
Number of couples who usedwedding halls or other vendors*2

163,000 couples(27.7%)

Note 1: As of 2018. Calculated as follows: number of couples who had a wedding ceremony and had photos taken (number of newly married couples x percentage of couples who had a wedding ceremony x percentage of couples who
had photos taken on a separate day) + number of couples who had photos taken but chose not to have a ceremony/reception (number of married couples x [1 – percentage of couples who had a wedding ceremony] x
percentage of couples who had photos taken but chose not to have a ceremony/reception).
(a) The number of couples who had a photo wedding among those who had a wedding ceremony:・ Number of couples who had a wedding ceremony: Total newly married couples (586,000 couples) (“Outline of Vital Statistics in Japan (2019) (final figures)” of the Ministry of Health, Labor and Welfare) x percentage of
couples who had a ceremony (64.9%) (“Kekkon sougou ishiki chosa 2018” (Comprehensive marriage awareness survey 2018) by Recruit Bridal Souken, RecruitMarketing Partners) = 380,000 couples.
・ Number of couples who had a photo wedding:number of couples who had a wedding ceremony (380,000 couples) x percentage of couples who had photos taken on a separate day (64.3%) (“Zexy kekkon torendo
chosa 2018” (Zexy wedding trend survey 2018) by Recruit Marketing Partners) = 244,000 couples (number of couples rounded down to the first decimal place).
(b) Number of couples who had a photo wedding among those who did not have a ceremony:・ Number of couples who did not have a ceremony: Total number of newly married couples (586,000 couples) – number of couples who had a wedding ceremony (380,000 couples) = 206,000 couples.
・ Number of couples who had a photo wedding:Number of couples who did not have a ceremony (206,000 couples) x percentage of couples who had photos taken but chose not to have a ceremony/ reception(31.4%) “Nashi-kon ni kansuru jittai chosa (2018/12/17)” (Fact-finding survey on marriages without ceremonies/receptions; Dec. 17, 2018) by Wedding Park)= 64,000 couples (number of couples rounded down to the first decimal place).
Note 2: The number of couples who used specialized companies: number of couples who had a wedding ceremony and a photo wedding x percentage of couples who used specialized companies + number of couples who had a photowedding but did not have a wedding ceremony.
Number of couples who used wedding halls or other vendors: number of couples who had a wedding ceremony and a photo wedding x percentage of couples who used wedding halls or other vendors
The percentage of couples who used specialized companies and percentage of couples who used wedding halls or other vendors were calculated (rounded off to the first decimal place) based on figures from “Zexy kekkon
torendo chosa 2018” (Zexy wedding trend survey 2018) by Recruit Marketing Partners. See page 55 for details.

© Decollte Holdings Corporation

45

Changes in Number of Marriages and Photo Wedding Market

The number of marriages is declining each year. However, the current sizeof the photo wedding market is around 52.1 billion yen, and it is expected
to keep growing steadily.
Changes in number of marriages in Japan(ten thousand couples)

Size of photo wedding market*¹

COVID-19
pandemic

70
64

Photo wedding market
62

61

60

59

Approx.

60

52.1 billion yen

53
50

*2018

40

Factors Driving Future Market Growth
–

1

30

Increase in the percentage of couples who have photo shoot provided
by the ceremony/reception vendor on a separate day (⇒ page 48)
–

20

2

–

Existing needs for photo weddings among couples who choose not tohave a wedding ceremony/reception (⇒ page 49)–

10

The emergence of services meeting customer needs and couples’ desire
to have photos that cannot be taken on the day of the wedding are key
factors driving the increase in the number of couples who want to havephoto shoots on a separate day

A photo wedding is a new wedding format that is attracting interest
because it allows women to enjoy the experience of being a bride andhave photos they can keep while being more affordable than a wedding
ceremony

0
2015

2016

2017

2018

2019

2020

Note 1: The size of Japan’s photo wedding market was calculated according to the formula below:
Price per photo shooting: 169,000 yen (average of price per in-studio photo shooting [159,000 yen] and price per on-location photo shooting [178,000 yen], based on figuresfrom “Zexy Kekkon Torendo Chosa 2018” (Zexy wedding trend survey 2018) by Recruit Marketing Partners) x number of couples who had a photo wedding: 309,000 couples= 52.1 billion yen.
We made these estimates using external statistics and other published data based on certain assumptions, but the actual market size may differ from the estimates due toinherent limitations in the statistics and estimates on which they were based.
© Decollte Holdings Corporation
46
Source: “Outline of Vital Statistics in Japan (2020) (final figures)” of the Ministry of Health, Labor and WelfareWedding Industry Trends

Interest in having wedding ceremonies/receptions with the attendance ofguests is trending downward. Interest in non-traditional formats of wedding
such as photo weddings, wedding photo shoots on a separate day,and online weddings is growing.
Google search trends for traditional weddings

Google search trends for non-traditional weddings
100

100

Separate photo shoot80

80

Hotel wedding

60

60

Resort wedding

40

Photo wedding

40

Online weddings

Guest house wedding
20

20

New perceptions of
weddings
Decollte’s target area

Traditional weddings
0

0
2008

2010

2012

2014

2016

2018

2020

2022

2008

2010

2012

2014

2016

2018

2020

2022

Note:

The graph shows the number of searches for each keyword from 2008 to the present as an index, with the maximum value as 100. 0 indicates that there was not enoughdata for that keyword.
Source: Google Trends© Decollte Holdings Corporation

47

Increasing Percentage of Couples with Separate Photo Shoot by Wedding Hall or Reception Vendor

The proportion of couples who have photo shoots on a separate day is rising every
year. The emergence of services meeting customer needs and couples’ desire to havephotos that cannot be taken on the day of the wedding are key factors driving theincrease in the number of couples who want to have photo shoots on a separate day.
Changes in proportion of couples who have separate
photo shoots taken by the wedding hall or
reception vendor

More couples want to take center stage without worrying
about what’s happening around them
 Couples are busy dealing with guests, etc. on the day of
the wedding ceremony and reception

75%

70.8%
70%

67.8%

65%

63.0%

60%

Background to increased proportionof separate photo shoots

63.7%

Increased desire to have photos that cannot be taken on
the day of the wedding There is growing demand to have photos that cannot betaken on the day of the wedding ceremony and reception
as a record of the marriage, such as photos in different
outfits or locations

64.3%

62.6%

59.4%

55%

2015

2016

2017

2018

2019

2020

2021

Source: “Zexy Kekkon Torendo Chosa 2015-2021” (Zexy wedding trend survey 2015-2021) by Recruit Marketing Partners© Decollte Holdings Corporation48

Existence of Photo Wedding Needs among Couples Who Choose Not to Have a Wedding Ceremony/Reception

Photo weddings provide the experience of being a bride at a lower cost thana wedding ceremony.
They are also attracting interest as a new wedding format since theexperience can be preserved in photos.
Reasons for considering a photo wedding(Number of respondents who did not have a wedding
ceremony or reception = 598)*1

Wanted to keep it as a keepsake

64.9%

Wanted to commemorate themarriage in another way, since
we were not planning to have awedding ceremony/reception

Wanted to wear a wedding dress

Added value delivered by photo weddings

52.0%

Hair and makeup

Western dress

Kimono・ Experience of being a bride through an exciting,new style of photo shoots
37.3%

・ Preserving memories (photos)
・ Showing appreciation to parents and family
members through photos

Wanted to have photos(for myself)

34.0%

Wanted to have photos (forparents and other family
members) or was asked to havephotos taken from parents

31.5%

・ Enjoying a memorable, emotional experience ata reasonable price

0% 10% 20% 30% 40% 50% 60% 70%
Note 1: Multiple responses allowed. The top 5 items out of all responses are shown.
Source: “Foto-wedding doko chosa (2022/10/6) (Photo wedding trend survey 2022;
October 6, 2022)” by Wedding Park© Decollte Holdings Corporation

49

Risk Information© Decollte Holdings Corporation50

Risk Information
The main risks recognized as having the potential to materially impact achieving thecompany’s growth or executing its business plan, along with the countermeasures
addressing them, are as shown below.
For other risks, please refer to “Other Business Risks, Etc.” in the annual securities report.
Recognized Risks

Countermeasures1
AcquiringandDeveloping
Human
Resources

We recognize that acquiring exceptional talentand developing our human resources will be
key issues as we pursue the growth of ourbusiness in the future.
The failure to acquire the necessary humanresources, departures of core talent, or failure
to develop our human resources could delayplans to open new studios or impede theoperation of existing studios, which could
affect our group’s financial situation andperformance.

To acquire human resources, we have hired a group-wide hiring
manager and implemented a system to strengthen our hiring
practices. We are pursuing efforts to increase the applicant pool byincreasing the number of channels through which we post
information and reducing the number of applicants who withdraw
during the process by revising the recruitment flow. In addition,
due to current decreased hiring in the conventional bridal businessdue to the pandemic, the labor environment facilitates hiring by us
and we are proactively engaged in recruitment activities.
In terms of human resources development, we have built a uniqueeducational curriculum that allows those who want to be
professionals to acquire many skills in a short period of time,
instead of the traditional teacher-apprentice system. In addition,
we have implemented a personnel system that raises the level oftraining based on the employee’s grade, and by implementing
training in stages, we enable inexperienced new hires to rapidly
develop their potential and encourage each employee to improvetheir level in an efficient manner, based on their abilities.

2Opening
Studios

We are actively pursuing the opening of newstudios to increase revenue. However,
although we are developing new studios in
multiple regions at the same time, in case ofus being unable to secure suitable candidate
properties for studio locations, being unable
to open new studios on schedule due to being
unable to acquire the human resources
necessary to open new studios, or if ourstudio opening performance diverges fromour plans, it could affect our group’s financial
situation and performance.

In terms of securing candidate locations for new studios, it is
not necessary for our studios to be located in commercial
facilities or street frontages, since the various services we offer
require booking a studio visit in advance online or by phone,unlike service industry or restaurant industry businesses, which
focus on facilitating access or visits by an unspecified numberof customers. A wide range of options are possible for opening
studios, including general office floors.

We are pursuing measures to acquire the human resources
necessary for studio openings, as described in 1 above.

© Decollte Holdings Corporation

51

Appendix© Decollte Holdings Corporation

52

Cost Breakdown
Cost Breakdown (Photo Wedding Business)

Advertising expenses

Purchases

8.0%

11.0%

Commissions expenses
2.0%
Costume repair costs
1.4%
Other expenses
メイク

8.9%

Rent expenses
8.8%

販売
管理費

売上原価
Total labor costs
25.1%

Note: The studio cost breakdown (cost of sales + SG&A expenses) for the photo wedding business from October 2021 to September 2022 is shown.
Percentages indicate the ratio to sales.
© Decollte Holdings Corporation

53

Changes in Annual Studio Openings and Total Numberof Studios
30(Unit: studios)

26
25
20

15
15
10
5
0

5
2

2

2

2

2008

2009

7

9

11
1

12

17

19

19

2

2

2

20
18
2

1
2

22
1
3

1
11

1

Pet*4

5

Anniversary*5

2

1

10

Total numberof studios

13

15

17

17

16

17

18

20

Wedding

7

8

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2

2

1

3

2

2

1

0

2

3

4

Number ofstudios opened

0

0

0

0

0

0

1

1

0

1

0

Number ofstudios closed

Asakusa

Kyoto

HAPISTA
Horie Park

Nara

Hokkaido

Shibuya

Okinawa

Okinawa

5

2

0

3

2

0

0

0

0

Fukuoka

NagoyaUmeda

Yokohama

Shinjuku

HAPISTA
Horie

Kobe

Okinawa

Fuji

Tachikawa

HAPISTA
TOKYO

Namba

HAREI

Karuizawa

HAPISTA
Esaka

Omiya

NagoyaEkimaeNote 1: Years are based on the calendar year.
Note 2: Excludes studios related to transferredbusinesses.
Note 3: 2022 figures are as of September 30.
Note 4: The studio that shoot pet photos is
HAREI Jingumae.
Note 5: HAPISTA are anniversary photostudios.

HAPISTA
Hirakata
T-SITE© Decollte Holdings Corporation

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Approximate Calculation Methods for the Ratio of
Couples Using Specialized Companies, Wedding Halls,
Etc. and the Size of the Photo Wedding Market＝ total number of marriages*2(586,000 couples)- number of couples who had aceremony (380,000 couples)Specializedcompanies＝ number of couples who had a ceremony(380,000 couples)× percentage of couples who had a separate
photo shoot*4 (64.3%)

82,000 couples= number of couples who had a ceremony and separate photo shoot(244,000 couples)x percentage who used a specialized company*6 (33.7%)

Wedding halls,
etc.

244,000 couples

Breakdown of the number of couples having a photowedding in 2018*1＝ number of couples who had a ceremony and separate photo shoot(244,000 couples)- number of couples who had a ceremony and separate photo shoot who
used a specialized company (82,000 couples)

162,000 couples

Market size*7
13.86
billion yen
Market size*7
27.32
billion yen

136,000 couples＝ number of couples who had a ceremony(380,000 couples)－ the number of couples who had a ceremonyand separate photo shoot (244,000 couples)

64,000 couples＝ number of couples who did not have aceremony/reception (206,000 couples)x percentage who choose not to have aceremony/reception but had a photo shoot*5 (31.4%)

Specializedcompanies

206,000 couples

With
photo
shoot

Without a
photo shooton a separateday＝ total number of weddings*2(586,000 couples)x percentage of couples who had aceremony*3 (64.9%)

Without a
photo shoot

Marriage without aceremony/reception

With ceremony

380,000 couples

With a photo shoot on a
separate day

Breakdown of the number of newly married couples
in 2018*1

64,000 couples
Specialized companies are the photo wedding service provider
for couples who choose not to have a ceremony/reception

Market size*7
10.9
billion yen

141,000 couples= number of couples who did not have a ceremony(206,000 couples)- number of couples who did not have a ceremony
but had a photo shoot (65,000 couples)

Note 1:

We made these estimates using external statistics and other published data based on certain assumptions, but the actual market size may differ from the estimates due to inherent limitations in the statistics and estimates on which
they were based. The number of couples is rounded down to the first decimal place.
Excerpted from “Outline of Vital Statistics in Japan (2019) (final figures)” of the Ministry of Health, Labor and Welfare
Excerpted from “Kekkon sougou ishiki chosa 2018” (comprehensive marriage awareness survey 2018) by Recruit Bridal Souken, Recruit Marketing Partners
Excerpted from “Zexy Kekkon Torendo Chosa 2018” (Zexy wedding trend survey 2018) by Recruit Marketing Partners
Excerpted from “Kekkon sougou ishiki chosa 2018” (comprehensive marriage awareness survey 2018) by Recruit Bridal Souken, Recruit Marketing Partners
Calculated based on the results of a questionnaire conducted as part of “Zexy Kekkon Torendo Chosa 2018” (Zexy wedding trend survey 2018) by Recruit Marketing Partners● Service provider of separate in-studio photo shoots:
Percentage of specialized companies: we used the percentage obtained after eliminating “no answer” responses from the results (nationwide estimates) of a survey onservice provider for separate in-studio photo shoots (wedding halls and other vendors = 65.4% [51.1% + 14.3%], specialized companies = 28.7%, no answer= 5.9%)*8 (ratio of wedding halls and other vendors to specialized companies = 69.5％:30.5％).
● Service provider of separate on-location photo shoots:
Percentage of specialized companies: we used the percentage obtained after eliminating “no answer” responses from the results (nationwide estimates) of a survey onservice provider of separate on-location photo shoots (wedding halls and other vendors = 59.8% [46.4% + 13.4%], specialized companies = 34.3%, no answer＝ 5.9%)*8 (ratio of wedding halls and other vendors to specialized companies = 63.5%:36.5％).
● Percentage of in-studio and on-location shoots:
We used the percentage obtained after eliminating “both” responses from the results (nationwide estimates) of a survey on the details of separate in-studio andon-location photo shoots (in-studio: 36.7%, on-location: 41.4%, both: 21.9%) (ratio of in-studio to on-location photo shoots = 47.0%:53.0％).
● Percentage of specialized companies used for separate shoots: Based on the above calculation results, the percentage of in-studio photo shoots (47.0%) × the percentage of couples using specialized companies (30.5%)+ the percentage of on-location photo shoots (53.0％) × the percentage of couples using specialized companies (36.5%) ＝33.7％.
Note 7: The market size was calculated by multiplying the number of couples by the price per photo wedding, which is 169,000 yen (the average of the price per in-studio photo shooting [159,000 yen] and price per on-location photoshooting [178,000 yen]).
Note 8: Wedding halls and other vendors ＝ companies exclusive to or affiliated with the venue + external costume stores, or companies affiliated with or referred by costume stores; specialized companies = external photostudios/photographers.
Source: “Outline of Vital Statistics in Japan (2019) (final figures)” of the Ministry of Health, Labor and Welfare; “Zexy Kekkon Torendo Chosa 2018” (Zexy wedding trend survey 2018) by Recruit Marketing Partners; “Kekkon sougou ishiki
chosa 2018” (Comprehensive marriage awareness survey 2018) by Recruit Bridal Souken, Recruit Marketing Partners; “Nashi-kon ni kansuru jittai chosa (2018/12/17)” (Fact-finding survey on marriages without
ceremonies/receptions; Dec. 17, 2018) by Wedding Park
Note 2:
Note 3:Note 4:Note 5:Note 6:© Decollte Holdings Corporation

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Markets to Be Approached (TAM: Total Addressable Market)

Life Photo Company
Childbirth/childrearing

Maternity
photosApprox.
17 billion yen

Adolescence

Wedding

Entrance/
graduation
ceremonies

Family life

Senior life

Weddinganniversaries

End of life
photosApprox.
141 billion yen

Approx.
19 billion yen

Photo weddings
Photogenic Journey

Approx.
172 billion yen

Photos ofchildrenComing-ofage
ceremonies

Approx.
123 billion yen

Approx.
93 billion yen

Approx.
186 billion yen

PetPhotography

Approx.
190 billion yen

Celebrationsof longevity

Approx.
111 billion yen

Approx. 1 trillion yen+
Note: The approximate value of each TAM is calculated by estimating the maximum number of photography contracts and the average spend, as shown on page 57 and after.
The estimates may not always be accurate.
© Decollte Holdings Corporation

56

Assumptions for Calculating Approximate Value ofEach TAM (1/3)
Number of people
Event

Category

Age

GenderTotal(thousands ofpeople)

0

MF

894

Shrine visit

20,000 yen

0

MF

894

179

100th day celebration

20,000 yen

0

MF

894

179

Half-birthday

20,000 yen

0

MF

894

179

Shichi-Go-San festival

20,000 yen

3
5
7

F
M
F

487
499
497

Girls’ Day / Boys’ Day

20,000 yen

0-6

MF

964*1

Half-adult ceremony

20,000 yen

10

MF

1,061

97 *1: Assuming that each child aged 0 to 6 will experience the Girls’ Day orBoys’ Day festival at least once, the average of the totals for boys
100
and girls aged 0 to 6 is shown.
99
Source for number of people:
193“Population Estimates (as of October 1, 2019)” of the Ministry ofInternal Affairs and Communications
212
1,238

Elementary school entrance
ceremony

20,000 yen

7

MF

1,018

204

Elementary school graduation
ceremony

20,000 yen

12

MF

1,074

215

Junior high school entrance
ceremony

20,000 yen

13

MF

1,066

Junior high school graduation
ceremony

20,000 yen

15

MF

1,107

High school entrance
ceremony

20,000 yen

16MF

1,112*2

High school graduation
ceremony

20,000 yen

18MF

1,174*2

University entrance ceremony

20,000 yen

19

MF

667*3

University graduation
ceremony

20,000 yen

22

MF

689*3

Junior college / vocational
school entrance ceremony

20,000 yen

19

MF

348*4

Junior college / vocational
school graduation ceremony

20,000 yen

20

MF

352*4

213 *2: Calculated by multiplying the population for each age by the highschool enrollment rate.
221 *3: Calculated by multiplying the population for each age by theuniversity enrollment rate.
*4: Calculated by multiplying the population for each age by the junior
222
college and vocational school enrollment rate.
Source for number of people:
235“Population Estimates (as of October 1, 2019)” by Ministry ofInternal Affairs and Communications
133 Source for high school enrollment rates:“Basic Survey of Schools in 2019” of the Ministry of Education,
138
Culture, Sports, Science and Technology
Source for university, junior college, and vocational school enrollment
70 rates:“Current State of High School Education” of the Ministry of Education,
Culture, Sports, Science and Technology
70

50,000 yen
100,000 yen

20
20

M
F

646
610

Total
Coming-of-age
ceremonies

Calculation assumptions / source

20,000 yen

Total

Entrance/
graduation
ceremonies

Total amount(100 millions ofyen）

The number of pregnant women is assumed to be equal to the number of
0-year-olds.
179 Source for number of people:“Population Estimates (as of October 1, 2019)” of the Ministry ofInternal Affairs and Communications

Maternity photos

Photos of children

Unit price

Total

1,721
323 Source for number of people:
610“Population Estimates (as of October 1, 2019)” of the Ministry ofInternal Affairs and Communications
933© Decollte Holdings Corporation

57

Assumptions for Calculating Approximate Value ofEach TAM (2/3)
Number of people
Event

Category

Unit priceAge

Gender

Total(Thousands of
Couples)

Photo weddings

168,500 yen

586

Photogenic Journey

150,000 yen

586

Weddinganniversaries

Total

Total amount(100 millions ofyen）

Calculation assumptions / source

988 Source for price per photo wedding:“Zexy Kekkon Torendo Chosa 2018” (Zexy wedding trend survey2018) by Recruit Marketing Partners(Average of price per in-studio photo shooting [159,000 yen] and price880 per on-location shooting [178,000 yen])
Source for number of people:“Outline of Vital Statistics in Japan (2019) (final figures)” of the
Ministry of Health, Labor and Welfare
80

1st anniversary

15,000 yen

31

MF

535

2nd anniversary

15,000 yen

32

MF

550

82

3rd anniversary

15,000 yen

33

MF

559

84

4th anniversary

15,000 yen

34

MF

580

87

5th anniversary

15,000 yen

35

MF

599

90

10th anniversary

15,000 yen

40

MF

658

15th anniversary

15,000 yen

45

MF

809

20th anniversary

15,000 yen

50

MF

749

25th anniversary

15,000 yen

55

MF

657

30th anniversary

15,000 yen

60

MF

621

35th anniversary

15,000 yen

65

MF

631

40th anniversary

15,000 yen

70

MF

863

99 We have assumed that the average marrying age is 30 years old.
121 The number of people is calculated by multiplying the average male andfemale populations for each age by the marriage rate.
112 Source for marriage rate:
99“Population Census Report” of the Ministry of Internal Affairs andCommunications Statistics Bureau
93
Source for number of people:
95“Population Estimates (as of October 1, 2019)” of the Ministry ofInternal Affairs and Communications
129

45th anniversary

15,000 yen

75

MF

631

95

50th anniversary

15,000 yen

80

MF

438

66

55th anniversary

15,000 yen

85

MF

352

53

60th anniversary

15,000 yen

90

MF

198

30
1,415

© Decollte Holdings Corporation

58

Assumptions for Calculating Approximate Value ofEach TAM (3/3)
Number of people
Event

Pet Photography

Category

Unit price

Age

MF

Total
(thousands ofpeople)Dog

15,000 yen

7,152

Cat

15,000 yen

5,524

Total

End of life photos

Calculation assumptions / source

1,073 The number of people indicates the number of households keeping dogs
829 or cats.
Source for number of households keeping dogs or cats:
1,901Japan Pet Food Association

15,000 yen

60-64

MF

43

7

15,000 yen

65-69

MF

86

13

15,000 yen

70-74

MF

115

17

15,000 yen

75-79

MF

158

15,000 yen

80-84

MF

225

15,000 yen

85-89

MF

277

15,000 yen

90-94

MF

235

24 The number of people indicates the number of deaths by age group.
34 Source for number of fatalities:“Vital Statistics in Japan (2018)” of the Ministry of Health, Labour and42
Welfare35

15,000 yen

95-99

MF

109

16

15,000 yen

100+

MF

28

Total

Celebrations of
longevity

Total amount(100 millions of
yen）

4
191

60th birthday

15,000 yen

61

MF

1,485

223

70th birthday

15,000 yen

70

MF

2,124

319

77th birthday

15,000 yen

77

MF

1,500

225

80th birthday

15,000 yen

80

MF

1,078

88th birthday

15,000 yen

88

MF

648

90th birthday

15,000 yen

90

MF

486

162 Source for number of people:
97“Population Estimates (as of October 1, 2019)” of the Ministry ofInternal Affairs and Communications
73

99th birthday

15,000 yen

99

MF

43

100th birthday

15,000 yen

100

MF

35

Total

6

5
1,110

© Decollte Holdings Corporation

59

Disclaimer

This document has been translated from the Japanese originalfor reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original,
the original shall prevail.

Contact Us
Contact information for Inquiries about This Presentation andOther IR Information
IR Manager, Decollte Holdings Corporation
URL: https://ir.decollte.co.jp/
E-mail ：ir@decollte.co.jp© Decollte Holdings Corporation

60