Presentation Material of Results for First Quarter of Fiscal Year Ending
September 2023

February 3, 2023
Decollte Holdings Corporation

Table of Contents

１

Results for First Quarter of Fiscal YearEnding September 2023

P3

２

Growth Strategy and Medium-Term
Management Plan

P14

３

Company Highlights

P30

４Structural Changes in the Wedding
Industry

P40

5

Risk Information

P46

6

Appendix

P48© Decollte Holdings Corporation2

Results for First Quarter of Fiscal YearEnding September 2023

© Decollte Holdings Corporation

3

Performance Summary (First Quarter of Fiscal Year Ending September 2023 (Consolidated))

Despite the impact of the eighth wave of COVID-19, unit price growth contributed
greatly to performance.
Revenue exceeded the first quarter of the previous year and record-high quarterly
revenue was achieved on a consolidated basis.
FYE Sep. 2023
First Quarter

FYE Sep. 2022
First Quarter

1,815

1,554

116.8%

Gross profit

899

789

113.9%

Operating profit

539

474

113.6%

1,233

Profit341

301

113.3%

735(Millions of yen)

Revenue

YoY
ChangeFYE Sep. 2023
Forecast

6,928⚫

For photo weddings, average customer spend saw a significant increase of 22.0% from the same period of
the previous fiscal year despite a decrease in the number of new customers and lower number of photoshoots caused by the impact of the eighth wave of COVID-19. As a result, revenue grew considerably fromthe same period of the previous fiscal year (+4.6% for existing studios, +16.8% company-wide).

⚫

Upfront investment costs such as personnel and advertising expenses associated with accelerating openingof new studios arising since the fiscal year ended September 2021 put pressure on profits in the firstquarter of the previous fiscal year, but in the current consolidated fiscal period contributions of existingstudios and new photo wedding studios opened in the previous consolidated fiscal year led to sales growth,which absorbed the increase in expenses, while operating profit increased steadily by 13.6% from the same
period of the previous fiscal year.

⚫

See page 7 for changes in major costs associated with business expansion (personnel and advertisingexpenses and depreciation).
© Decollte Holdings Corporation

4

Change in Revenue from First Quarter of Previous Fiscal Year (Consolidated)

Revenue for the first quarter of the current consolidated fiscal year was 1.81
billion yen (+16.8% YoY)
Growth of new photo wedding studios and existing studios (+4.6% YoY)
contributed significantly to revenue growth.
(Millions of yen)

2,000

1,800

127

26

2

108

1,600

1,815

1,400

1,554
1,200

1,000
RevenueFirst quarter of
FYE Sep. 2022
(Consolidated)

New photoweddingstudios

Increase in revenueof existing photowedding studios

HAPISTA

Other

RevenueFirst quarter of
FYE Sep. 2023
(Consolidated)

New photo wedding studios: Studio TVB Namba Parks (March 2022), Studio Eight Nagoya Ekimae (September 2022)
Existing photo wedding studios: Aggregate of studios that have been operating for 13 months or longer© Decollte Holdings Corporation5

Change in Operating Profit from First Quarter of Previous Fiscal Year (Consolidated)

Operating profit for first quarter of the current consolidated fiscal year totaled 539
million yen (+13.6% YoY).
Increased expenses were absorbed by revenue growth centering on the studio business.
(Millions of yen)

700

26
600

45

193

22

34

500

400

300

539

474

200
Operating
22/9期
profitFirst第１四半期
quarter of
FYE
Sep.
2022
連結累計期間(Consolidated)

営業利益

Profitincrease
売上収益の増加に
due to伴う増益
revenueincrease

Personnel
人件費
expenses

Depreciation
減価償却費

Advertising
広告宣伝費
expenses

Other
その他

Operating
23/9期
profit第１四半期
First
quarter of
FYE
Sep.
2023
連結累計期間(Consolidated)

営業利益

Profit increase due to Estimated amount of profit increase after accounting for change in travel and transportation:
revenue increase
expenses associated with merchandise purchasing, costume repairs, shooting, etc.
Personnel expenses : Increased due to proactive hiring for future studio openings
Depreciation increased due to the opening of two photo wedding studios and two HAPISTA
Depreciation:in the fiscal year ended September 2022

© Decollte Holdings Corporation

6

Analysis of Key Cost Variables

Personnel expenses increased due to increased hiring and training to match studioincrease and accelerated pace of openings.
Increased advertising expenses but maintained flexible control in light of theinfection status of COVID-19.
(Millions of yen)

800

600

Advertisingexpenses
100

Advertisingexpenses122

Depreciation
Depreciation

188

142

[Advertising Expenses]• Increased due to increased number of studios (+4 studios
from a year ago).
• For the year, the ratio to revenue was set within 10%, whichis the same level as before the pandemic. We will flexibly
control expenses according to circumstances.
＋22 million yen[Depreciation (mainly rent expenses of studio properties)]• Increased due to increased number of studios (+4 studios
from a year ago)
(Rent expenses are included in depreciation in IFRS)

400＋45 million yen

200

Personnel
expenses440

Personnel
expenses
466

0First 22/9期
quarterof FYE第１四半期
Sep. 2022(Consolidated)
連結累計期間23/9期
Firstquarterof FYE
Sep. 2023
第１四半期(Consolidated)
連結累計期間[Personnel Expenses]• In addition to the increase in the number of studios (+4studios compared with a year ago), personnel expenses
increased due to advanced hiring of personnel for studios tobe opened from the second quarter onward.
• Although the amount increased due to increased personnel,
the ratio to revenue declined from 28.3% in the same periodof the previous fiscal year to 25.7%.
＋26 million yen© Decollte Holdings Corporation

7

Change in Quarterly Results (Adjusted Operating Profit)

Record-high first-quarter revenue despite the impact of the eighth wave of infection
Adjusted operating profit also reached a record high thanks to contributions fromstudios opened in the previous fiscal year.

Revenue

Adjusted Operating Profit
Record-highrevenue(Millions of yen)

1Q

2,000

(Oct.Dec.)

1,000

1,434

1,381

1,554

1,815

(Millions of yen)

1Q
(Oct.Dec.)

2Q(Jan.Mar.)

Recovery to pre-pandemic
level despite long-term stateof emergency declaration

945

936

1,032

2Q

1,000

(Jan.Mar.)

03Q(Apr.June)(JulySep.)

2,000

All studios closed
temporarily
due to state of
emergency declaration

1,000

393

1,210

1,490

3Q
(Apr.June)

608

663

Head office(118)
expenses
Other income/expenses

(115)

(134)

(125)

13

(0)

0

186

131

(120)

(129)

4

435

2,000
1,000

168

0

2,000
1,000

Impacted by state of
All studios closed
emergency
temporarily due to state
declaration andof emergency declaration studio opening costs

47

Higher profit level
than pre-pandemic

479

370

0

942

1,010

1,245

4Q
(JulySep.)

0

(112)

(115)

2

（0）

2,000
1,000

254

Impacted by studio
opening costs

161

219

(135)

(115)

(1)

(1)

FYE
Sep. 2021

FYE
Sep. 2022

0

Head office(114)
expenses
Other income/expenses

FYE
Sep. 2020
Note:

618

Head office(100)
expenses
Other income/expenses

2,000
1,000

544

1,000

Head office(132)
expenses
Other income/expenses

0

4Q

Record-highadjusted
operating profit

0

0

2,000

2,000

Impact of higher
advertising/
personnel expenses

FYE
Sep. 2021

FYE
Sep. 2022

FYE
Sep. 2023

FYE
Sep. 2020

FYE
Sep. 2023

Revenues are for continuing operations as of end of December 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

8

Change in Performance KPIs: YoY Comparison of Existing Studios

Due to expanded use of Live Retouch, increased number of costumes used, and increased
use of high-priced costumes, etc., average spend at existing studios increased considerably
by 18.9% year on year cumulatively, while net sales increased by 5.3% year on year.
YoY Change in Performance of Existing Studios
FYE Sep. 2020

FYE Sep. 2021

FYE Sep. 2022

160.0%
140.0%
120.0%
100.0%
80.0%
60.0%(FYE Sep. 2020
cumulative)(FYE Sep. 2021
cumulative)

40.0%

Net sales: 75.9%

Net sales: 124.9%

20.0%

Avg. spend: 102.2%

Avg. spend: 113.9%

Number ofcases: 74.3%

Number ofcases: 109.6%

0.0%
Oct.
2019

Jan.
2020

Apr.
2020

Jul.
2020

Oct.
2020

Jan.
2021

Net sales of existing studio sales
Average spend
Number of cases

All studios temporarily closed
previous year

All studios temporarily closed(Apr.-May 2020)

Apr.
2021

FYE Sep. 2023

(FYE Sep. 2022
cumulative)

Jul.
2021

(FYE Sep. 2023
cumulative)

Net sales: 107.0%

Net sales: 105.3%

Avg. spend: 110.9%

Avg. spend: 118.9%

Number ofcases: 96.4%

Number ofcases: 88.5%

Oct.
2021

Jan.
2022

Apr.
2022

Jul.
2022

Oct.
2022

Jan.
2023

Growth Drivers of Existing Studios

Avg.
spend



Increased use of Live Retouch, introduced in May 2022, largely contributed.

The average cost of costumes continued to rise. In addition to an increase in
the number of costumes used per couple, there was increased use of highpriced costumes introduced through partnerships with domestic and overseas
luxury brands.

An increase in resort photos, which have a high unit price, also
contributed to unit price growth.

We will continue to implement measures to improve the average customer
spend by offering a full range of products that go beyond just photography.

Numberof cases

Order-securing activities were affected by the eighth wave of COVID-19
infections.



While average spend rose due to two-costume Japanese- and Westernstyle plans and studio + location shooting plans, etc. the longer shooting
hours impacted the number of photography contracts.

Demand for resort photos in Okinawa, etc. has increased as activity
restrictions have eased.

Increased demand for pre-shooting and separate shooting is
expected with the resumption of wedding ceremonies and receptions
as the transition to living with COVID-19 progresses.

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

9

Consolidated Cash Flow (CF)Operating CF increased by 570 million yen due to revenue growth during the busy seasons
Balance of cash and deposits increased despite investment CF and financing CF burden
We are preparing to open new studios from the second quarter onwards(Millions of yen)

2,000

168

1,800

188

579

1,600

1,400

1,573
1,200

1,350

1,000
Balance of cash anddeposits at end of FYE
Sep. 2022(end of Sep. 2022)

Operating CF

Investment CF

Financial CF

Balance of cash anddeposits at end of 1Q of
FYE Sep. 2023
(end of Dec. 2022)

Investment CF ： Payment to acquire fixed assets for studios opened in September 2022 in October (77 million yen)
Payment for guarantee deposits accompanying lease agreements for studios scheduled to open thisfiscal year, including Studio AQUA Yokohama Ekimae (79 million yen)
Financial CF： Repayment of short-term borrowings (62 million yen)
Payment of lease liabilities (rent for studio properties) associated with lease contracts (123 million yen)
© Decollte Holdings Corporation

10

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

Increase in right-of-use assets and lease liabilities corresponding to rent forstudios to be opened from the second quarter onwards.
The equity ratio attributable to owners of the parent increased to 35.3% due toan increase in retained earnings.
(Millions of yen)

End ofDec. 2022

End ofSep. 2022

Change

1,573

1,350

222

Short-term borrowings

Trade and otherreceivables

238

222

16

Lease liabilities

Other

113

150

-36

Other

1,925

1,723

202

905

938

-33

Borrowings

Right-of-use assets

3,946

3,735

210

Lease liabilities

Goodwill

5,635

5,635

0

Other

636

554

81

Total non-current assets

11,123

10,865

Total assets

13,04912,588Cash and cash equivalents

Total current assets
Property, machinery andequipment

End ofDec. 2022

End ofSep. 2022

Change

2,840

258

2,582

444

443

0

1,097

1,142

-45

4,382

1,844

2,538

490

3,126

-2,635

3,306

3,101

205

266

259

7

Total non-current liabilities

4,064

6,486

-2,422258

Total equity

4,602

4,257

345

461

Total liabilities and equity

13,04912,588461

Total current liabilities

Other

Right-of-use assets, lease liabilities : Increased due to conclusion of lease contract for Studio AQUA Yokohama Ekimae, which opened in January 2023; decreased due tolease payment (rent) under lease contracts for existing studios.
Borrowings: Transferred the syndicated loan concluded in December 2020 to short-term borrowings as the repayment date is the end of November
2023. Scheduled to be refinanced by the due date.
Equity: Increased with retained earnings (341 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 43.2% of total assets (as of end of December 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 Corporation11

Forecast for FYE Sep. 2023

Revenue of 6.92 billion yen (+30.2% YoY) and operating profit of 1.23 billion
yen (practically +25.2% YoY) with the opening of multiple HAPISTA in addition
to growth of the photo wedding business.
Forecast for
FYE Sep. 2023

Results of
FYE Sep. 2022

YoY change

Revenue

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
Operating profit excluding gain on sale of
fixed assets

1,233

985

17.8%

18.5%

Profit735

1,018-27.7%

Profit excluding gain on sale of fixed
assets*2

735

720

+2.1%

(Millions of yen)

+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

12

Status of Growth Measures

Implementation of new year’s card present campaign as first step of partnershipwith MIXI Group.
Launch of new wedding photo business in collaboration with IBJ, a leading providerof services for marriage-seekers.
Initiatives with MIXI Group

Started Handling Korean Dress Brand Aurum - A First in Japan
We started handling dresses by Aurum, which is a trendsetter in Korea•

At a series of fashion shows organized by Decollte that were held
starting in December, Aurum was very popular, and we acquired newreservations at these events.

•

These bridal dresses help make a once-in-a-lifetime moment the bestexperience possible.
They will contribute to customer acquisition by providing
clothing aligned with client needs.

Collaboration with MIXI Group’s SFIDANTE Inc.
•

Implementation of free new year’s card present campaign for our photowedding/anniversary photo customers using SFIDANTE’s smartphone
photo new year’s card service.

•

Linking information with SFIDANTE will lead to customer referrals
to HAPISTA in the future.

Launch of New Photo Service for Marriage-Seekers
Collaboration with IBJ Inc., which operates Japan’slargest network of marriage agencies•

In January 2023, we launched a photo service for marriageseekers that takes profile photos for members of IBJ's directly
managed marriage agencies.

•

Thanks to photo shoots with Decollte’s in-house hair and makeup
artists and photographers along with a retouching service like thatoffered for our photo weddings, customers can have the perfectpicture taken, which will increase interest from potential matches.

•

We aim to acquire customers by guiding these clients toward ourmainstay photo wedding business in the future.
© Decollte Holdings Corporation

13

Growth Strategy and Medium-Term
Management Plan

© Decollte Holdings Corporation

14

Growth Strategy Summary

In addition to steady growth of the photo wedding business, we will capture
digital photo needs in the life event field and enhance life-time-value ofcustomers for growth.

1 Growth of photo wedding businessContinuous new studio openings(increase in number)Continue to open two or more studios eachyear

Strengths
 Can offer comprehensive,high-quality photo wedding
services– Ability to attract customers
through 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

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 to 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 52 to 55.
Regarding the calculation method of the market size in the photo wedding market, the actual market is described on page 23 and the potential market is described on page 42.
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

15

Medium-Term Management Plan: Summary

Accelerate growth of anniversary photo business “HAPISTA” alongside further
growth of mainstay photo wedding service, creating the foundation of 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 field.

Studio 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*2

Impact of sale of fixed assets*3
Profit from continuing business

1,000

6,928

800

5,322

298
1,301

600

11

20

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

16

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% despite 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 Corporation17

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%.
(Millions of yen)

FYE
Sep. 2022

FYE
Sep. 2023

FYE
Sep. 2024

FYE
Sep. 2025

5,057

6,377

7,466

8,490

26.1%

17.1%

13.7%

Revenue
Revenue growthrate
Operating profit*

992

1,255

1,543

1,905

Operating margin

19.6%

19.7%

20.7%

22.4%

26.4%

22.9%

23.5%

Operating profit
growth rate

3530Studios in regional cities
New satellite studios
New terminal studios
Studios already opened

3

25

1
20

15

10

2
18

4

18

3

3

6

7

18

18

FYE
FYE
FYE
FYE
Sep. 2022 Sep. 2023 Sep. 2024 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
cities.

Studio 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 Corporation18

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 (Opened Jan. 2021)
Yokohama
Terminal Studio Revenue Model
Minatomirai

Capital Area

Kinki Area

Jan. 21, 2023: Opening of Studio AQUA
Yokohama Ekimae
We opened a studio in front of
Yokohama Station, a location with goodtransportation access, in an aim to
expand the trade zone in Eastern
Kanagawa together with the existing
Yokohama Minatomirai studio.
We established a permanent resort
counter to increase orders for resort
photos.

Note: The operating margin in the revenue model is basedon information as of December 31, 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 Corporation

19

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 ofDecember 31, 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 Corporation

20

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 Corporation21

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

Perceptions of marriage are changing faster amid the pandemic.
The proportion of couples who choose not to have a ceremony and reception isincreasing, and the proportion of photographic wedding ceremonies consistently
increased compared with the same month of the previous year.
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. Oct. Nov. Dec.

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 Corporation22

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 more clients bycapturing demand from couples who use photography services of wedding
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)

Target Market to Be Newly Developed
Our current target market *3Market size: 24.8 billion yen, 147,000 couples

Increasedfocus onwedding
eventsMain 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. 51 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 (64,000 + 82,000 = 147,000). See pg. 51 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 Corporation23

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 weddingrelated 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Photo
weddings

21.0%

Online consultation
オンライン式場相談会

19.8%

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

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%

Price Increases
The average price per wedding continues to increase.

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

Onlineweddings

Familyphotos

67.5%

0.9%
0.3%

0.0%

Wedding
format with afocus onphotography

20.0%

40.0%

60.0%

(indexed by taking the fiscal year ended September 2017 as 100) *2

164.5

180
160
140
120

100.0

104.0

104.4

106.7

FYE
Sep.
2017

FYE
Sep.
2018

FYE
Sep.
2019

FYE
Sep.
2020

121.6

134.8

100
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.

FYE
Sep.
2021

FYE
Sep.
2022

FYE
Sep.
2023
1Q

© Decollte Holdings Corporation24

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 Corporation25

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 field otherthan 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%

30

23

20

11
10

5

0
FYE
Sep.
2022

FYE
Sep.
2023

FYE
Sep.
2024

FYE
Sep.
2025

Business strategy

Change in Number of
Anniversary Photo Service Studios
4036

 To strengthen our business in the life event field, we will accelerate the opening of HAPISTA
offering anniversary photo services (multiple locations have already opened), with a target of 50
studios in cumulative total by the end of the FYE Sep. 2026, and make it our secondlargest 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%.
© Decollte Holdings Corporation26

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 toopen studios and expand our high-quality anniversary photo business (HAPISTA),
which takes ”natural” pictures of people.
Anniversary Photo Business That Sets Itself Apart from
Conventional 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 Corporation27

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 began commercialization.
Beginning preparations to resume services for foreign tourists once restrictions on entry
into Japan for foreign travelers are eased.
Coming-of-Age Ceremony Photos

Original
pictureEfforts to Resume Photo Services for Foreign Tourists

 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 thephoto wedding business and FuRyu Corporation’s
image adjustment technology and young womenoriented 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 thatare familiar to young women on the spot.
It produces a natural finish suited to comingof-age ceremony photos which differs fromboth photo sticker machines and camera apps.
It also supports more efficient image adjustment
after taking photos.

 The aim is a scale exceeding fiscal year ended September 2019 especiallyafter the re-expansion of entry from China.

NALU

Beautiful skinapp-styleprocessing As of January 2023, border measures are being strengthened for
Chinese tourists entering Japan, but since the number of visitors is
expected to recover in the future, we are preparing for re-expansion.

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

28

Future Outlook

Having sophisticated photo techniques at thecore, we aim to be a “Life Photo Company”
that provides people with photos they will
want

to

keep

foreverandemotional

experiences that will stay with them throughLife Photo Company

services delivering real value and that offersa 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

29

Company Highlights© Decollte Holdings Corporation30

Features and Strengths of Our Photo Weddings

Decollte has built an encompassing business model and operation dedicated tophoto weddings.
The result is being capable to achieve both reliable, high-quality services andhigh 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 anoperating 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

31Company Highlights: Summary

In-housing of online customer acquisition, professional staff, dedicated facilities
and items, the sources of our photo wedding service’s competitive edge. 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 failure

Our growthProfit growth

Increasecustomer
attraction

Increase ability
to generate
profits

Attractive dedicated facilities
and studios(foundation of competitive edge)

Stronger foundation byscaling up
Greater effectivenessthrough in-housing
strategy

Sales growth

Sources of Decollte’s competitive edge
• Built a unique HR development
system, employ many professionals
in-house• In-house
costumedesignandmanufacturing outsourcing, wide
range of studio and costume options• In-house website production andotherfunctions,strongonlinecustomer acquisition and marketing
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 Corporation32

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

44

262

280

283

284

Sep. 2020

Sep. 2021

Sep. 2022

Dec. 2022

30
200

0

Unique 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

134

150

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 December 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 Corporation33

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, instead of the traditional
teacher-apprentice system. It is directly linked to superiority in acquiring human resources.
Our Professional Development System, Which Can Be Said to Be
Bringing an End to 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“An End to the Apprenticeship System”
by Decollte’s Unique Educational System

Skill acquisition
in about two years

Acquire many skills
E2
One person
does

TeacherNew
graduate
employee

Programoverview

Traditional industry practice (apprenticeship)

Photography

Hair &
makeup

Dressing

Employee

Training for new graduates

Professionals
with many skills

 Two-year training programfor beginners
 Focus on wedding technique Studio and location shooting
 Kimono・Dress × Makeup・Dressing

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.
(First year)
 Develop to the level of “knowing the necessary
skills.” By “reviewing and mastering behavior,” thisSecondcurriculum develops trainees to a level where theyyear oncan respond to general and standard demands ontheir own.
 Nurturing to the level of “complete as a
Fifth year
professional” who can respond to difficult andoncomplicated demands on their own.

High-level homogenization of technique© Decollte Holdings Corporation34

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 with 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 Corporation35

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 excel inservice websites and social media, which is 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••

Accumulation of positive reviews
Photo exposure

39.4
47.4

Social media
SNS

48.7

New customer

Sharing/spreading

27.6
30.6

Other
websites
その他Webサイト

31.0

•

19.3
25.5

Bridalwebsites
結婚情報サイトCollects information using
customer reviews, etc. on
websites and social media

•
•

24.1
Narrowing downof potential
service providers

14.2
15.4

Weddinghalls
結婚式場の情報•

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

18.2
Bridal
結婚情報誌
magazines
Friends/
友人・知人の紹介
acquaintances
Websites of
挙式会場のHP
weddingvenues, etc.
2020

11.6
13.0

9.6
11.3
10.1

8.6
6.1
5.6

Ease of access to studios
Compares photo samples
and websites

Comparison of potential
service providers

•
•
•

7.8
2021

•
•

•

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)

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

Improved competitivenessin attracting customers
Reduced spending on advertising media

2022

Source: Zekushi Kekkon Torendo Chosa 2022 Shutoken (Zexy Wedding Trend Survey 2022 Metropolitan Area) by Recruit© Decollte Holdings Corporation36

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 and1 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 BF

K Decollte I

K

F Decollte FA

B Decollte QC

E Decollte F

E

Q Decollte A

E

O Decollte F

ＳE

当社 B社 F社 K社 当社 I社 K社 F社 当社 F社 A社 B社 当社 Q社 C社 E社 当社 F社 E社 Q社 当社 A社 E社 O社 当社 F社 S社 E社
Yokohama

Kyoto

Shinjuku

Asakusa

Shibuya

NagoyaFukuokaNote: Evaluation as of January 23, 2023.
The above seven studios were selected based on the descending order of the number of reviews posted(Yokohama: 1,566, Kyoto: 1,488, Shinjuku: 1,045, Asakusa: 812, Shibuya: 696, Sakae: 602, Fukuoka: 589).
The competitors listed are companies most frequently mentioned by customers as their potential selection in our December 2022 preliminary customer survey.
© Decollte Holdings Corporation

37

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 ofphotography

Percentage ofphotography contracts
当社施行件数割合

当社施行件数contracts

by Decollte

by Decollte

2,500

Ratio to the total number of

Number of Photography Contracts on Different Days
(Shoots)

wedding ceremonies
結婚式実施割合

conducted in the year

Busy season

25%

6,000

Number ofphotography
当社施行件数contracts
by Decollte

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

20%
16.2%

1,500

5,000

50%

4,000

40%

15%

11.0%
10.6%
9.3%8.8%
9.5%
8.6%
9.3% 10%
8.5%
7.8%
7.7%

10.2%
1,000

500

7.8%
6.9%7.2% 7.0%7.0%
7.2%
5.7%

9.0%
8.1%
6.0%

2,000
11.6%

6.6%

5%

2月

3月

4月

5月

6月

7月

8月

9月 10月 11月 12月

0%

13.0% 13.9% 12.7% 13.6%

14.4%

0

1.5%

1.5%

1.5%

5.6%

3.4%

4.4%
Mon.

月

Tue.

火

Wed.

水

Thu.

木

Fri.

金

Sat.

土

Sun.

30%

20%

16.3%

1,000
1.5%

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

1月

31.3%

3,000

3.7%
0

60%

53.5%

Busy season
2,000

Ratio to the total number of

wedding ceremonies
結婚式実施割合
conducted in the year

10%

0%

Holiday
日
祝日(excluding
weekends)（土日除く）

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

38

Our Competitive Edge

Change in Operation Status/Productivity

Sales per photographer grew 11.6% YoY despite increasing headcount.
We increased the number of photo planners (customer service) and operational
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%

(Millions of yen)

(Shoots)
60

1Q

51

52

52

48

40
20

11.3

11.8

11.9

13.2

0

60

38

37

20

8.0

8.0

20

4Q

0

0
15

41

9.0

10.1

5

3.1

34

0

34

30%
27%

29%
25% 26%

28%

30%

30%
25%

24%

15%
10%
5%

5

7.5

10

11

0

40

20%

0

0 closed temporarily0
All studios
due to state of emergency declaration(Apr.-May 2020)
60
39
40

5

10

0

3Q

25%

15

34

30%

10

0

40

2Q

15

31%
28%

0%

2022
Jan. Feb. Mar. Apr. May June July Aug. Sep. Oct. Nov. Dec.

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

34

10

20
7.7

7.5

5

8.7

0

0
FYE
Sep. 2019

FYE
Sep. 2020

FYE
Sep. 2021

FYE
Sep. 2022

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

39

Structural Changes in the Wedding Industry© Decollte Holdings Corporation40

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 is 25.1%, 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 51 for details.

© Decollte Holdings Corporation

41

Changes in Number of Marriages and Photo Wedding Market

The number of marriages is declining each year. However, the current size of the photowedding market is around 52.1 billion yen, and it is expected to keep growing steadily.

Change in Number of Marriages in Japan

Size of Photo Wedding Market*¹(ten thousand couples)
COVID-19
pandemic
Photo wedding market

70
64

62

61

60

59

Approx.

60

52.1 billion yen

53
50

*2018

Factors Driving Future Market Growth

40

–

1

Increase in the percentage of couples who have photo shoot provided
by the ceremony/reception vendor on a separate day (⇒ page 44)
–

30

20

2

–

Existing needs for photo weddings among couples who choose not tohave a wedding ceremony/reception (⇒ page 45)–

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
42
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 of guests istrending downward. Interest in non-traditional formats of wedding such as photoweddings, 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 shootHotel wedding
80

80

60

60

40

40

Online weddings
Resort wedding
Guest house wedding

20

20

Photo wedding

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

43

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.
Change in Proportion of Couples Who Have Separate
Photo Shoots Taken by the Wedding Hall or
Reception Vendor
75.0%

73.3%

70.0%
67.8%

63.0%

63.7%

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
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

70.8%

65.0%

Background to Increased Proportionof Separate Photo Shoots

64.3%

62.6%

60.0%

59.4%

55.0%

2015

2016

2017

2018

2019

2020

2021

2022

Source: “Zexy Kekkon Torendo Chosa 2015-2022” (Zexy wedding trend survey 2015-2022) by Recruit Marketing Partners© Decollte Holdings Corporation

44

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 than awedding ceremony.
They are also attracting interest as a new wedding format since the experience canbe 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

45

Risk Information© Decollte Holdings Corporation46

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

47

Appendix© Decollte Holdings Corporation48

Cost Breakdown
Cost Breakdown (Photo Wedding Business)

Advertising expenses

Purchases

8.0%

11.0%

Commissions expenses
2.0%
Costume repair costs
Other expenses
メイク

8.9%

SG&A
expenses
販売

1.4%

管理費

Cost of sales
Rent expenses
8.8%

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

49

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

25
20

15

15
10
5
0

5
2
2

7

9

1

2

7

8

10

19

2

2

2

20

18
2

1
2

1
3

1

1

Pet*3

5

5

Anniversary*4

Wedding

1

11

26

2

1

2
5

11

12

17

19

22

13

Total numberof studios

26

15

17

17

16

17

18

20

20

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023

2

0

3

2

2

2

1

3

2

2

1

0

2

3

4

1

Number ofstudios opened

0

0

0

0

0

0

0

0

0

0

1

1

0

1

0

1

Number ofstudios closed

 Opened Studio AQUA Yokohama Ekimae on January 21, 2023.
 Chapel SUNS closed in January 2023.
Chapel SUNS was opened as a ceremony business studio. After that, it was used as a photography chapel with the transfer ofthe ceremony business.
In addition to the building’s deterioration, we decided to close the studio because we can continue meeting customers’ chapel
photo demand by partnering with a popular nearby chapel.
Note 1: Years are based on the calendar year.
Note 2: 2023 figures are as of January 31.
Note 3: The studio that shoot pet photos is HAREI Jingumae.
Note 4: HAPISTA are anniversary photo studios.
© Decollte Holdings Corporation50

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 Photo
Wedding 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 53 and after.
The estimates may not always be accurate.
© Decollte Holdings Corporation

52

Assumptions for Calculating Approximate Value of Each 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

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Assumptions for Calculating Approximate Value of Each 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

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Assumptions for Calculating Approximate Value of Each 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

55

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

56