〔Delayed〕The original disclosure in Japanese was released on August 9, 2013 at 15:00 (GMT+9)

August 9, 2013

Best Bridal Inc.
Consolidated Earnings Report for the Six Months ended June 30, 2013
(Japanese GAAP)
Stock listing: Tokyo Stock Exchange (First Section)
Securities code: 2418
URL: http://www.bestbridal.co.jp/english/
Representative: Masayuki Tsukada, President and CEO
Information contact: Keiji Ishihara, Director
Tel: +81-3-5464-0081
Scheduled dates:
Filing of statutory quarterly financial report (sihanki hokokusho): August 9, 2013
Dividend payout:
September 9, 2013
Supplementary materials to quarterly financial results available: Yes
Quarterly earnings presentation held: Yes (Targeted at institutional investors and analysts)(Amounts rounded down to the nearest million yen)

1. Consolidated Performance for the Six Months ended June 30, 2013
(January 1, 2013 – June 30, 2013)(1) Consolidated Operating Results
Net sales
million yen(Percentages indicate year-on-year changes)%
Six months ended
22,265
9.3
2,597
June 30, 2013
Six months ended
20,3699.1
2,203
June 30,2012
Note: Comprehensive income: Six months ended June 30, 2013:
Six months ended June 30, 2012:

Net income per shareyen

Ordinary income
million yen%

Net income
million yen
%

17.9

2,684

21.8

1,431

43.1

17.1

2,204

19.0

999

81.4

Operating income
million yen%

1,624 million yen
1,009 million yen(60.9 %)
(59.7%)

Diluted net income per
share
yen

Six months ended
29.23
June 30, 2013
Six months ended
20.42
June 30, 2012
(Note) Effective July 1, 2013, the Company conducted a 1:200 common stock split. Net income per share wascalculated assuming that the stock split was effected at the beginning of the fiscal year ended December 31, 2012.
(2) Consolidated Financial Position

June 30, 2013

Total assets
million yen
47,892Equity ratio%

Net assets
million yen
22,19548,381
20,815
December 31, 2012
Reference: Total equity: June 30, 2013:22,195 million yen
December 31, 2012: 20,815 million yen
Total equity=Shareholders’ equity plus total accumulated other comprehensive income.

1

46.3
43.0

2. Dividends
End-Q1yen

Dividend per share
End-Q3yen

End-Q2yenYear ended
1,000.00
December 31, 2012
Year ending
1,000.00
December 31, 2013
Year ending
December 31, 2013
(Forecast)
Note: No revision has been made to the latest dividends forecast.

Year-endyen

Annual total
yen-

1,000.00

2,000.00

-

5.00

-

Effective July 1, 2013, the Company conducted a 1:200 common stock split. The year-end dividend for the fiscal
year ending December 31, 2013 (forecast) reflects the stock split.

3. Earnings Forecast for the Fiscal Year ending December 31, 2013
(January 1, 2013 – December 31, 2013)(Percentages indicate year-on-year changes)
Net income per
Net sales
million yen%

Operating income
million yen%

Ordinary income
million yen%

Net income
million yen%

Year ending
48,200
8.3
7,400
13.5
7,300
10.4
4,300
31.5
December 31, 2013
Note: No revision has been made to the latest earnings forecast.
Effective July 1, 2013, the Company conducted a 1:200 common stock split. Net income per share for the fiscal year
ending December 31, 2013 in the above earnings forecast reflects the stock split.

*Notes(1) Changes affecting the consolidation status of significant subsidiaries during the period: None
(2) Use of accounting methods specific to the preparation of quarterly consolidated financial
statements: Yes(3) Changes in accounting policy, changes in accounting estimates, and retrospective
restatement
1) Changes in accordance with amendments to accounting standards, etc.: Yes
2) Changes other than noted in 1) above: None
3) Changes in accounting estimates: Yes
4) Retrospective restatement: None
(Note) This relates to Article 10-5 of the Regulations on the Terminology, Format andPreparation of Quarterly Consolidated Financial Statements. For details, please refer to“(3) Changes in Accounting Policy, Changes in Accounting Estimates, andRetrospective Restatement” in section “2. Other Information” on page 7 in theaccompanying materials.

2

share
yen
87.83

(4) Shares issued (common stock)1) Number of shares issued at end of period(including treasury stock)2) Number of shares held in treasury at end of
period3) Average number of shares outstanding during
the period

June 30, 2013

December 31, 2012

48,960,000

48,960,000--

Six Months ended
June 30, 2013

Six Months ended
June 30, 2012

48,960,000

48,960,000

Effective July 1, 2013, the Company conducted a 1:200 common stock split. The number of shares issued at
end of period (common stock) was calculated assuming that the stock split was effected at the beginning of the
fiscal year ended December 31, 2012.

* Quarterly Review Status
This report is exempt from the review requirements of Japan’s Financial Instruments and Exchange Act. Asof this report publication, a review of the consolidated quarterly financial statements in accordance with the
Act is underway.

*Appropriate Use of Earnings Forecast and Other Important Information
1. The above forecasts are based on information available as of this report’s publication. Actual
results may differ from forecasts due to changes in the business environment. For theassumptions underlying the forecasts herein and other notice on the use of earnings forecasts,
please refer to “Earnings Forecast for the Fiscal Year ending December 31, 2013” in the section“Review of Consolidated Financial Results” on page 5 in the accompanying materials.
2. Effective July 1, 2013, the Company conducted a 1:200 common stock split. The forecast of
year-end dividend for the year ending December 31, 2013 and the forecast of net income per sharefor the fiscal year ending December 31, 2013 reflect the stock split.

3

Accompanying Material – Contents
1. Review of Consolidated Financial Results(1) Operating Results(2) Financial Condition(3) Earnings Forecast for the Fiscal Year ending December 31, 2013
2. Other Information(1) Changes in Significant Subsidiaries(2) Application of Specific Accounting Methods for the Preparation of Quarterly
Financial Statements(3) Changes in Accounting Policy, Changes in Accounting Estimates, andRetrospective Restatement
3. Consolidated Financial Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income(3) Consolidated Statements of Cash Flows(4) Note on the Going-concern Assumption(5) Note on Significant Changes in the Amount of Shareholders’ Equity(6) Segment and Other Information(7) Significant Subsequent Events
4. Supplementary Information

4

5
5
5
6
7
7
7
7
8
8
10
10
11
12
14
14
14
16
17

1. Review of Consolidated Financial Results(1) Operating Results
In the first six months of the fiscal year ending December 31, 2013, the outlook for the Japanese
economy began to brighten as expectations for the policies of the new government that took officenear the end of 2012 fueled yen depreciation and a stock market rally, which helped improve
consumer sentiment. Nonetheless, concerns about Europe’s lingering fiscal instability and slowing
growth in emerging market economies continued to obscure the outlook for the economy.
In this environment, the Best Bridal Group endeavored to increase sales and profitability bycontinually creating new value in the guest house and wedding business through high-quality,
appealing outlets and value-added services, and by taking proactive efforts to enhance businessefficiency.
As a result of the above factors, the Group posted consolidated net sales of ¥22,265 million in
the first half of the fiscal year, an increase of 9.3% over the same period of the previous fiscal year.
Operating income totaled ¥2,597 million, a year-on-year increase of 17.9%, ordinary income
amounted to ¥2,684 million, up 21.8%, and net income totaled ¥1,431 million, a 43.1% gain over the
first half of the previous fiscal year.
Results for each business segment were as follows.
1) Domestic operations
Sales at the Group’s domestic operations increased in the six months ended June 30, 2013,
supported by an increase in weddings held at Best Bridal’s existing outlets and at consolidated
subsidiary Hospitality Network Corporation, which has completed renovation of its facilities.
As a result, net sales in the domestic business totaled ¥20,879 million, a year-on-year increaseof 9.8%, and segment operating income reached ¥3,204 million, an increase of 12.1%.
2) Overseas operations
The number of weddings held and orders placed in the first half was largely the same as in the firsthalf of 2012 despite a continued moderate recovery in overall market conditions.
As a result, net sales at our overseas business totaled ¥1,385 million, a year-on-year increase of
2.0%, while segment operating income came to ¥21 million, 79.5% less than a year earlier.
(2) Financial Condition
1) Assets, liabilities, and net assets
Assets at the end of the second quarter (June 30, 2013) totaled ¥47,892 million, a decline of ¥488
million from the end of the previous fiscal year (December 31, 2012) as a ¥582 million increase ininvestments and other assets was offset by a ¥1,121 million decline in cash and cash equivalents.
Liabilities at the end of the second quarter totaled ¥25,697 million, ¥1,868 million less than at theend of the previous fiscal year. The reduction in liabilities is attributable to a net decrease of ¥1,000
million in long-term debt and bonds combined with a ¥992 million reduction in income taxes payable,
which were partly offset by a ¥294 million increase in advances received.
Net assets at the end of the second quarter totaled ¥22,195 million, an increase of ¥1,379 million
from the end of the previous fiscal year. This increase was mainly due to the booking of ¥1,431
million in net income for the six months ended June 30, 2013, which outweighed the ¥244 million in
dividends paid from retained earnings.
2) Cash Flow
Cash and cash equivalents (“cash”) at the end of the first half declined by ¥1,141 million from theend of the previous fiscal year to ¥10,064 million.
Cash flows and factors behind changes in the cash flows during the six months ended June 30,
2013, are explained below.
(Operating Cash Flow)5

Cash generated from operating activities totaled ¥2,146 million, an increase of 138.3% from the firsthalf of the previous fiscal year. The main factors were ¥2,660 million in income before income taxes
and minority interests and ¥1,284 million in depreciation expenses, the sum of which was partially
offset by ¥2,221 million in income taxes paid.
(Investing Cash Flow)
Cash used in investing activities totaled ¥2,046 million, an increase of 190.6% from the first half ofthe previous fiscal year. The increase largely reflects outflows of ¥1,246 million for the purchase of
tangible assets (property, plant, and equipment) and ¥509 million for the purchase of investment
securities.
(Financing Cash Flow)
Cash used in financing activities totaled ¥1,323 million, exactly the same as a year earlier, mainlyreflecting a net decrease of ¥1,073 million in debt and bonds and an outflow of ¥244 million for thepayment of dividends.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2013
There is no change to the consolidated earnings forecasts for the year ending December 31, 2013,
which the Company announced on February 14, 2013.

6

2. Other Information(1) Changes in Significant Subsidiaries
Not applicable.
(2) Application of Specific Accounting Methods for the Preparation of Quarterly Financial Statements(Simplified accounting methods)
1) Calculation method for depreciation of fixed assets
Depreciation expenses for assets to which the declining-balance method is applied are calculatedby allocating a quarterly proportion of the amount for the full fiscal year.
2) Calculation method for deferred tax assets and deferred tax liabilities
Regarding judgments on the amount of recoverable deferred tax assets, the Company has
determined that there have been no significant changes in the economic environment or
emergence of temporary differences since the end of the previous fiscal year, and therefore thecalculations are based on future earnings forecasts from the previous year and tax planning
methods.
(Special accounting treatments)
Calculation of taxes
The Company calculates tax liabilities by producing a reasonable estimate of the effective tax rate
after applying tax-effect accounting to income before income taxes and minority interests for the
fiscal year, which encompasses the six months ended June 30, 2013, and then multiplying income(loss) before income taxes and minority interests by this estimated effective tax rate. In cases where
this estimated effective tax rate cannot be used, the statutory effective tax rate is used.
(3) Changes in Accounting Policies, Estimates, and Retrospective Restatement(Changes in accounting policies that are difficult to distinguish from changes in accounting
estimates)
In accordance with the revision of the Corporation Tax Act of Japan, the depreciation method fortangible assets acquired on or after January 1, 2013, has been changed to the method under therevised act from the first quarter of this fiscal year.
The impact of this change on the Company’s profits is minimal.

73. Consolidated Financial Statements(1) Consolidated Balance Sheets

AssetsCurrent assets
Cash and deposits
Accounts receivable - trade
Merchandise
Raw materials and supplies
Other
Allowance for doubtful receivables
Total current assets
Fixed assets
Tangible assets
Buildings and structures, net
Land
Other, net
Total tangible assets
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Other
Total investments and other assets
Total fixed assets
Deferred assets
Total assets

8

December 31, 2012
Amount(millions of yen)
June 30, 2013
Amount11,314
333
39
327
1,188
(48)
13,154

10,192
402
5
339
1,204
(50)
12,093

16,2474,760
1,216
22,224

16,0304,769
1,316
22,116

1,042
231
1,273

1,002
204
1,206

5,827
5,870
11,69735,19532
48,381

5,996
6,452
12,44835,77128
47,892

December 31, 2012
Amount(millions of yen)
June 30, 2013
AmountLiabilities
Current liabilities
Accounts payable - trade
Current portion of long-term debt
Current portion of bonds
Income taxes payable
Advances received
Provision for loss on cancellation of rental contract
Other
Total current liabilities

2,157
3,191
612
2,237
942
52
2,527
11,722

2,262
3,021
538
1,244
1,237
52
2,325
10,682

Fixed liabilities
Bonds
Long-term debt
Provision for employees’ retirement benefits
Provision for directors’ retirement benefits
Provision for loss on cancellation of rental contract
Asset retirement obligations
Other
Total fixed liabilities
Total liabilities

1,590
11,230
268
594
100
1,068
992
15,84427,566

1,348
10,715
297
614
74
1,075
889
15,01525,697472
634
19,72920,836472
634
20,91622,023

41

45

13

37

(76)
(21)
20,81548,38188
171
22,19547,892

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gain on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Gain on investments in silent partnership
Foreign exchange gains
Gain on valuation of derivatives
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
Total extraordinary income
Extraordinary loss
Shop closing expenses
Loss on disposal of fixed assets
Total extraordinary loss
Income before income taxes and minority interests
Income taxes
Income before minority interests
Net income

10

Six months ended
June 30, 2012
Amount20,36913,651
6,717
4,514
2,203

(millions of yen)Six months ended
June 30, 2013
Amount22,265
14,781
7,484
4,886
2,597

27
44
34
80
186

31
57
0
76
59
224

159
26
185
2,204

132
5
137
2,684

0
0

0
0

2
2
2,202
1,202
999
999

6
17
23
2,660
1,229
1,431
1,431

Consolidated Statements of Comprehensive Income

Income before minority interests
Other comprehensive income
Net unrealized gain on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments
Share of other comprehensive income of affiliates
accounted for under the equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to minority
interests

11

Six months ended
June 30, 2012
Amount999(millions of yen)Six months ended
June 30, 2013
Amount
1,431

18

3

(0)

24

(10)

154

2

10

9
1,009

193
1,624

1,009

1,624

-

-

(3) Consolidated Statements of Cash FlowsSix months ended
June 30, 2012
Amount(millions of yen)Six months ended
June 30, 2013
Amount

2,202
1,194
42
4
2
16

2,660
1,284
41
4
13
(76)

8

2

11

28

200

20

(26)

(26)

(28)
159
(40)
(44)

(70)
132
22
(57)

(36)

(60)

20

22

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

(25)

98

43
(16)
(198)
3,488
24
(162)
(2,449)
900

290
73
38
4,442
61
(136)
(2,221)
2,146

Cash flows from investing activities
Purchase of tangible assets
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Loans receivable

(983)
(41)
317
(85)

(1,246)
(18)
(509)
7
(38)

12

Collection of loans receivable
Lease and guarantee deposits
Collection of lease and guarantee deposits
Other - net
Net cash provided by (used in) investing activities

160
(125)
45
8
(703)

0
(191)
1
(49)
(2,046)

Cash flows from financing activities
Proceeds from long-term debt
Repayments of long-term debt
Payments for redemption of bonds
Dividends paid to shareholders
Other - net
Net cash provided by (used in) financing activities

1,000(1,753)
(320)
(244)
(4)
(1,323)1,000(1,757)
(316)
(244)
(4)
(1,323)(4)

80(1,130)10,5329,401(1,141)
11,205
10,064Foreign currency translation adjustments on cash andcash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents, beginning of period
Cash and cash equivalents, end of period13(4) Note on the Going-concern Assumption
Not applicable(5) Note on Significant Changes in the Amount of Shareholders’ Equity
Not applicable(6) Segment and Other Information
I. Six Months ended June 30, 2012 (January 1 to June 30, 2012)
1. Net sales and income/loss by reportable segment(millions of yen)

Reportable segment
Adjustments(note 1)

Amount recordedon consolidated
statements ofincome (note 2)

20,369-20,369

0

3

(3)

-

19,014

1,358

20,373(3)

20,369

2,858

106

2,964

(761)

2,203

Domestic
operations

Overseas
operations

19,011

1,358

3

Total
Segment income (loss)

Net sales
Sales to outside customers
Inter-segment sales andtransfers

Total

Note: 1. The minus 761 million yen adjustment for segment income includes 7 million yen elimination ofinter-segment sales and minus 769 million yen of unallocated corporate expenses. The main
component of these unallocated corporate expenses is SG&A expenses that are not
attributable to reportable segments.
2. Segment income adjustments are based on operating income reported on the quarterly
consolidated statements of income for the corresponding period.
2. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable14II. Six months ended June 30, 2013 (January 1 to June 30, 2013)
1. Net sales and income/loss by reportable segment(millions of yen)

Reportable segment
Adjustments(note 1)

Amount recordedon consolidated
statements ofincome (note 2)

22,265-22,265

0

4

(4)

-

20,884

1,385

22,269ሺ4)

22,265

3,204

21

3,226

(629)

2,597

Domestic
operations

Overseas
operations

20,879

1,385

4

Total

Segment income (loss)

Net sales
Sales to outside customers
Inter-segment sales andtransfers

Total

Note: 1. The minus 629 million yen adjustment for segment income (loss) includes 7 million yen eliminationof inter-segment sales and minus 637 million yen of unallocated corporate expenses. The main
component of these unallocated corporate expenses is SG&A expenses that are not attributableto reportable segments.
2. Segment income adjustments are based on operating income reported on the quarterly
consolidated statements of income for the corresponding period.

2. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable15(7) Significant Subsequent Events
Stock Split and Adoption of Unit Share System
Based on the resolution made at the Board of Directors meeting held on June 13, 2013, the Company
implemented stock split, adoption of unit share system, and partial amendment to Articles ofIncorporation.
1. Purpose of stock split and adoption of unit share system
In accordance with the "Action Plan for Consolidating Trading Units" announced by Japanese stock
exchange on November 27, 2007, the Company conducted the stock split and adopted the unit sharesystem, defining 100 shares as one unit.
With the stock split and the adoption of the unit share system, the effective value of one
investment unit was reduced by half of the previous level.
2. Overview of Stock Split(1) Method
Shares of common stock held by shareholders who are stated or recorded in the final register ofshareholders as of June 30, 2013 were split at a ratio of 200 to one.
(2) Increase in number of shares resulting from the stock split
Total number of issued shares prior to the stock split:
244,800 shares
Increase resulting from the stock split:
48,715,200 shares
Total number of issued shares after the stock split:
48,960,000 shares
Total number of authorized shares after the stock split:
195,840,000 shares(3) Schedule
Public notice regarding the setting of record date:June 14, 2013 (Friday)
Record date:June 30, 2013 (Sunday)
Effective date:July 1, 2013 (Monday)(4) Change in capital stock
There is no change in capital resulting from the stock split.
3. Adoption of Unit Share System(1) Number of shares constituting one unit
The unit share system has been adopted with the number of shares constituting one unit being
100 shares.
(2) Schedule
Effective date:July 1, 2013 (Monday)(Reference) Effective June 26, 2013 (Wednesday), the trading unit for the Company’s stock on theTokyo Stock Exchange was also changed to 100 shares.

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4. Supplementary Information
Weddings Held, Orders Received, and Sales volume

1) Number of weddings held

Segment

Six months ended June30, 2012

Six months ended June30, 2013

Year ended December
31, 2012

Number of weddings

Number of weddings

Number of weddings

held (cases)

held (cases)

held (cases)

Domestic operations

4,317

4,787

9,543

Overseas operations

1,393

1,413

2,974

Total

5,710

6,200

12,517Six months ended June30, 2012

Six months ended June30, 2013

Year ended December
31, 2012

Orders

Order

Orders

Order

OrdersOrder

receivedbacklog

receivedbacklog

receivedbacklog(cases)(cases)(cases)(cases)(cases)(cases)2) Orders received

Segment
Domestic operations

5,785

6,930

5,342

6,751

10,277

6,196

Overseas operations

1,666

1,727

1,601

1,610

2,942

1,422

Total

7,451

8,657

6,943

8,361

13,2197,6183) Sales volume

Segment

Six months ended June30, 2012

Six months ended June30, 2013

Year ended December
31, 2012

million yen

million yen

million yen

Domestic operations

19,011

20,87941,633

Overseas operations

1,358

1,385

2,861

Total

20,36922,26544,494

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

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