TSE Mothers, CODE 24180

http://www.bestbridal.co.jp/

Best Bridal Inc.
Results of Operations for the Year Ended December 31, 2008

February 20,2009

Contents

1

1.1.FY12/08
FY12/08Consolidated
ConsolidatedFinancial
FinancialSummary
Summary

2.2.BusinessBusinessForecasts
Forecastsfor
forFY12/09
FY12/09

P3

FY12/08 Summary of Consolidated Business Results

P20 Consolidated Business Forecasts for FY12/09

P4

Consolidated Business Results

P21 Strategies for Domestic Operations ― Plan for FY12/09

P5

Quarterly Business Results

P22 Strategies for Overseas Operations ― Plan for FY12/09

P6

Consolidated Gross Profit

P7

SG&A Expenses and Start-up Cost

P8

Consolidated Operating Profit, Ordinary Profit
and Net Profit

P9

Summary of Domestic Operations

P10 Domestic Operations ― Existing Facilities
P11 Domestic Operations ― Opening of New Facilities
P12 Domestic Operations ― Nationwide Network
P13 Summary of Overseas Operations

3.3.Future
FutureStrategies
Strategies
P24 Future Strategies
P25 Strategies for Domestic Operations Strategies for Opening Facilities
P26 Strategies for Domestic Operations Plans for New Facility Openings
P27 Strategies for Domestic Operations
P28 Target a Broad Range of Needs for Wedding CeremoniesStrategies
for Domestic Operations

P14 Overseas Operations ― Facilities

P29 Strategies for Overseas Operations Promotion of the “Region’s

P15 Consolidated Balance Sheets

P30 Corporate Data

P16 Interest-bearing Debt
P17 Interest-bearing Debt Outlook for Interest-bearing Debt Balance
P18 Consolidated Cash Flows

No. 1 Facility” Strategy

2

FY12/08 Summary of Consolidated Business Results

3

Domestic operations contributed to earnings. Marked a record high achieving substantial sales and earnings
growth YoY.
 YoY rate of increase
Net sales
up 2,813 million yen
up10.0%Million yen

Net sales
Domestic operation Net sales
Overseas operation Net sales

Gross profit
Gross profit margin

SG&A expenses
SG&A expenses margin

Operating profit
Operating margin

Ordinary profit
Ordinary profit margin

Net profit
Net profit margin

Consolidated EPS
Annual dividend per share

Operating profit
up 1,271 million yen
up26.5%

Ordinary profit
up 509 million yen
up11.2%

ActualYoY change
FY12/08

FY12/07

Net profit
up 348 million yen
up16.6%
AmountPct.

28,25931,073+ 2,813+ 10.0%24,297
3,962

27,931
3,141

3,634
- 820

+ 15.0%- 20.7%

10,188

11,548+ 1,359+ 13.3%

36.1%

37.2%

+ 1.1p

－

5,382

5,471

+ 88

+ 1.6%

19.1%

17.6%

- 1.5p

－

4,805

6,077

+ 1,271+ 26.5%

17.0%

19.6%

+ 2.6p

－

4,534

5,043

+ 509

+ 11.2%

16.0%

16.2%

+ 0.2p

－

2,104

2,453

+ 348

+ 16.6%

7.4%

7.9%

+ 0.5p－¥ 25,792.37¥ 3,000¥ 30, 065.64¥ 5,000+ 16.6%+ ¥ 2,000

Consolidated Business Results

4

Continued increase in sales and earnings. Consolidated net sales, operating income, ordinary income and net
income all marked record high.
Growth in consolidated net sales

Growth in consolidated Operating profit

Growth in consolidated ordinary profit

Growth in consolidated net profit

Million yen

Million yen

Million yen
Ordinary profit
Ordinary profit 4,534
marginMillion yen
Net profit
Net profit
margin31,073

6,077

Operating profit
Operating profit
marginSales in Japan
28,259
Sales overseas

4,805

5,043

22,765

2,453

2,104

1,772
3,458
3,652
19.6%

16,153
17.0%

1,972

16.1%

16.0%

16.2%

15.2%

894

7.8%

1,959

7.9%
7.4%

12.1%
12.2%

5.5%

2005

2006

2007

Million yen
Consolidated net sales
Domestic operation
Overseas operation
Consolidated Operating profit
Consolidated ordinary profit
Consolidated net profit

2008

2005

FY12/05
Amount16,153
12,590
3,562
1,959
1,972
894

2006

2007

FY12/06
Amount

22,765
18,845
3,920
3,652
3,458
1,772

2008

2005

Pct.

40.9%
49.7%
10.0%
86.4%
75.3%
98.2%

2006

2007

FY12/07
Amount28,25924,297
3,962
4,805
4,534
2,104

2008

Pct.

24.1%
28.9%
1.1%
31.6%
31.1%
18.8%

2005

2006

2007

2008

FY12/08
AmountPct.

31,07327,931
3,141
6,077
5,043
2,453

10.0%
15.0%
- 20.7%
26.5%
11.2%
16.6%

Quarterly Business Results

5

Sales for each quarter increased YoY . Operating income for each quarter turned profitable.
Growth in quarterly consolidated net sales
Million yen

FY12/07

Growth in quarterly consolidated operating profit
Million yen

FY12/08

9,000

3,000

6,000

2,000

3,000

1,000

0

FY12/08
actualPct.
changeNo. of guest
houses
FY12/07
actualPct.
changeNo. of guest
houses

FY12/07

FY12/08

0

1Q

2Q

3Q

4Q

1Q

6,163

8,148

6,675

10,085

19.8%

26.2%

21.5%

32.5%

42

42

43

43

5,008

7,224

6,576

9,448

17.7%

25.6%

23.3%

33.4%

31

38

40

41

FY12/08
actualPct.
changeNo. of guest
houses
FY12/07
actualPct.
changeNo. of guest
houses

2Q

3Q

4Q

634

1,776

729

2,937

10.5%

29.2%

12.0%

48.3%

42

42

43

43

256

1,129

740

2,678

5.4%

23.5%

15.4%

55.7%

31

38

40

41

Consolidated Gross Profit

6【Gross profit】
Higher sales in Japan due mainly to the increasing number of weddings held and rise in average revenues
contributed to a substantial increase YoY.
 3 facilities (Nagoya-Yagoto, Kyoto-Kamogawa, Chiba) which opened in FY12/07 now operate throughout the year that the number of weddings
held in Japan and sales increased along with gross profit.
 Rise in average revenues per couple contributed to increase in gross profit in Japan.
 As for overseas, sales decreased that gross profit also decreased YoY.
Million yen

Consolidated gross profit
Gross profit (Japan)
Gross profit (Overseas)

FY12/07

FY12/08

AmountAmount10,188
8,964
1,224

11,54810,555993

YoY change
Amount+ 1,359+1,590- 230

Pct.

+ 13.3%+ 17.7%- 18.9%【Gross profit margin】
Consolidated gross profit margin improved by 1.1 point due mainly to higher sales and rise in averagerevenues in Japan.
3 facilities which opened in FY12/07 now operates steadily throughout the year that fixed cost ratio including wedding facility operating cost declined andprofit margin in Japan improved.
 Profit margin in Japan improved due to rise in average revenues per couple.
 As for overseas, although gross profit decreased, gross profit margin improved mainly because of implementing fixed cost-cutting measures.

FY12/07
Consolidated gross profit
Gross profit (Japan)
Gross profit (Overseas)

36.1%
36.9%
30.9%

FY12/08

37.2%
37.8%
31.6%

YoY change+ 1.1p+ 0.9p+ 0.7pSG&A Expenses and Start-up Cost

7

【Selling and general administrative 】
SG&A expenses only increased slightly YoY. As a result, SG&A expenses margin declined by 1.5 point YoY.
 Increase (SG&A expenses margin remained flat YoY) in advertising expense for new facilities to be opened.
SG&A expenses margin declined by 1.5 point due to higher sales.
Million yen

Selling and generaladministrative expenses
SG&A expenses margin

FY12/07

YoY change

FY12/08

Amount

Pct.

5,382

5,471

+ 88

+ 1.6%

19.1%

17.6%

- 1.5p-【Start-up cost】
As there were only 2 newly-opened guest houses (FY12/07: 10 guest houses) in FY12/08, start-up costdecreased significantly YoY.

 As there were only 2 newly-opened facilities and 2 guest houses in Akasaka and Odaiba, start-up cost declined significantly compared with 2 facilities
and 7 guest houses opened in FY12/07.
Million yen

FY12/07

YoY change

FY12/08

AmountStart-up cost

540

191

Pct. of sales

1.9%

0.6%

- 349
- 1.3p※Rents and personnel expenses which have accrued by the opening of new facilities are included in the SG&A expenses as a start-up cost.
※Includes the cost of consumables (cost of sales) in the first month after opening.

Pct.

- 64.6%-

Consolidated Operating Profit, Ordinary Profit and Net Profit

8【Operating Profit】
Significant increase YoY as there was only a slight increase in SG&A expenses in addition to higher sales
and improvement in gross profit margin.
YoY change
Million yen
FY12/07
FY12/08
AmountOperating profit
Operating margin

Pct.

4,805

6,077

+ 1,271+ 26.5%

17.0%

19.6%

+ 2.6p-【Ordinary Profit】
Increased YoY due to rise in operating profit but non-operating expenses increased mainly because of postingexchange loss associated with the weaker won.
 Exchange loss down ¥688mn (Breakdown: yen-dollar down ¥170mn; yen-won down ¥527mn; yen-rupiah up ¥17mn; others down ¥8mn)
Million yen

Ordinary profit
Ordinary profit margin

FY12/07

YoY change

FY12/08

Amount

Pct.

4,534

5,043

+ 509

+ 11.2%

16.0%

16.2%

+ 0.2p-【Net Profit】
Posted an exchange loss of ¥120mn due mainly to the cancellation of the opening of Kyoto facility but marked
a record high.
YoY change
Million yen
FY12/07
FY12/08
AmountNet profit
Net profit margin

Pct.

2,104

2,453

+ 348

+ 16.6%

7.4%

7.9%

+ 0.5p-Summary of Domestic Operations

9

Sales increased sharply due mainly to contributions from facilities opened during FY12/07 and higher
average revenues.
 Number of weddings held and sales increased as facilities (Nagoya-Yagoto: May, Kyoto-Kamogawa: June, Chiba: September) opened in FY12/07 went
into operation throughout the entire period.
 An increase in the number of weddings held and average revenues per couple boosted sales.
Million yen

FY12/07

24,297
41
28
10
3
5,601
68.9%

Net sales
No. of guest houses at end of period
Of which multi-guest house type
Of which Double-guest house type
Of which Single-guest house typeNo. of weddings
Operating rate
Average revenues per couple

YoY change
AmountPct.

FY12/08¥ 4,201thousand

27,931
43
28
10
5
6,352
66.1%

+ 3,634+2+2+ 751- 2.8p¥ 4,233thousand + ¥32thousand+ 15.0%+ 13.4%+ 0.8%※Average revenue per wedding does not include wedding ceremony and reception-related sales and the number of weddings.

Due to continuation of good order situation, both the number of orders received during the period and orderbacklog at the end of the period increased substantially YoY.
FY12/07
FY12/08
YoY change
No. of weddings

Order situation

No. oforders6,292Year-endorderbacklog

3,797

No. of orders

7,003

Year-endorderbacklog

4,448

No. of orders+ 711

Year-end orderbacklog+ 651

Domestic Operations Existing Facilities

10

Decreased slightly YoY but maintained high profitability due to high profit margin and low-cost operations.
 Despite a slight decrease in the number of weddings held, sales and profits decreased only slightly due to rise in average revenues,
thanks to marketing efforts.
 Gross profit margin remained high mainly because of reviewing outsourcing expense.
 Despite a slight increase in advertising expenses, pct. of sales remained low at 3.6% for attracting a large number of customers.
Million yen

FY12/07

YoY change

FY12/08

AmountPct.

Net sales

22,47022,257-213- 0.9%

Gross profit

7,382

7,175

-207

- 2.8%

32.9%

32.2%

- 0.7p

-

1,134

1,205

+ 71

+ 6.3%

5.0%

5.4%+ 0.4p

-

6,248

5,969

-278

- 4.5%

27.8%

26.8%

- 1.0p

-

5,299
75.0%

5,191
70.5%

- 108

- 2.0%- 4.5p¥ 4,204thousand¥ 4,258thousand+¥54thousand+ 1.3%

Gross profit margin
SG&A expenses
SG&A expenses margin
Operating profit
Operating margin
No. of weddings
Operating rate
Average revenues per couple ※※Target facilities: Nihonbashi; Shirogane; Yokohama; Osaka; Sendai; Nagoya-Hoshigaoka,; Shinurayasu ,Omiya,Aoyama,Ichigaya,Shinsaibashi,
Nagoya-Marunouchi(total: 12 facilities)
To assure comparability, YoY changes are calculated based on existing facilities in operation for a full year.
※Average revenue per wedding does not include wedding ceremony and reception-related sales and the number of weddings.

Domestic Operations Opening of New Facilities

11

Opened Akasaka facility within “Akasaka Sacas”, a large-scale urban development area and Odaiba facility,
the 2nd revitalizing business facility in FY12/08.
AKASAKA APPLAUSE SQUARE GEIHINKANDAIBA Palazzo e mare

AKASAKA APPLAUSE SQUARE GEIHINKAN
Opened in March 2008 1Guesthouse TypeDAIBA Palazzo e mare
Opened in September 2008 1Guesthouse TypeCan also enjoy as a creative French restaurant on
weekdays which is situated in a good location.

Opened within “Akasaka Sacas”, a large-scale urban
development area.
A new facility developed to take part in “creating a newtown”.

Opened as a revitalizing business facility using theexisting facilities
A multipurpose facility which offers “party houseweddings”

Domestic Operations Situation of Facilities

12

Balanced expansion of 17 facilities and 43 guest houses, particularly multi and double guest houses.
【 Type】
Multi-guest
house type
7 facilities,
28 guest
housesYokohama （4）Shinuyarasu（5）Omiya（4）Yagoto（4）Osaka（5）Shirogane（2）Aoyama（2）Chiba（2）

Hoshigaoka（2）Shinsaibashi（2）Kyoto（3）Sendai（3）Double-guest
house type
5 facilities,
10 guest
housesSingle-guest
house type
5 facilities,
5 guesthousesFacilities with “NewNew ” opened
during FY12/08. Parentheses
show the no. of guest houses ofeach facility.
Nihonbashi（1）Ichigaya（1）New Akasaka（1）New Odaiba（1） Nagoya-Marunouchi（1）TokyoTokyo area

Other areas

15

3【 Region】
No. of guest
houses8

Kansai

Nagoya

10

Total

7

43

Summary of Overseas Operations

13

The number of weddings held in Bali increased steadily but decreased in Hawaii.
 The number of travelers decreased due mainly to rise in surcharge caused by soaring crude oil prices that the Hawaii business sales declined.
 Regarding Hawaii, fixed costs have been reduced mainly because of reviewing contract churches.
 A steady increase in the number of weddings held in Bali in Indonesia supported sales in the Overseas Department but sales declined as a whole.
 The number of Destination Weddings increased as we strengthened the Hawaii and Bali salon orders.

Net sales
Year-end directly operated andexclusive chapels
No. of weddings
Direct sales in Japan
Alliance sales including travel
agencies
Direct sales in Hawaii/Bali(DW)

YoY change

FY12/07

FY12/08¥3,962million¥3,141million - ¥ 820million

AmountPct.

- 20.7%

9

8

-1

－

2,785
1,081

2,249
774

- 536

- 19.2%- 307- 28.4%

1,366

1,095

- 271

- 19.8%

338

380

+ 42

+ 12.4%※Unlike direct sales, alliance sales do not include travel-related sales. The average price of overseas weddings is not presented since revenue per overseas
wedding varies significantly.

Overseas Operations Facilities

14

Opened 7 facilities in Hawaii and 2 facilities in Bali in Indonesia, a total of 9 facilities.
4 directly operated and 3 exclusive chapels in Hawaii【 Directly operated】【 Directly operated】【 Directly operated】【 Directly operated】

Hilton Hawaiian Village Ocean Crystal Chapel

Paradise Cove Crystal ChapelBlue Lagoon Chapel

New House of Iris※

【 Exclusive use】※

New St. Andrew’s Cathedral【 Exclusive use】

【 Exclusive use】

Waioli Chapel

St. Mark‘s Episcopal Church※ House of Iris opened in February 2009.
Exclusive use contract with St. Andrew’s Cathedral started in January 2009.

2 directly operated facilities in Bali

Tirtha Uluwatu

Tirtha Luhur Uluwatu

Consolidated Balance Sheets

15

A
A ss ss ee tt ss

L
Liiaabbiilliittiieess aanndd nneett aasssseettss

Increase in tangible fixed assets

Interest-bearing debt

Increase in buildings and structures ： Increase in new facilities opened in 2008

Amount of interest-bearing debt： ¥15,862mn （down ¥3,187million compared to Dec, 31, ’07)
Interest-bearing debt dependence：48.9% (down 8.2 points compared to Dec. 31, ’07)

Increase in construction in progress： Increase in new facilities slated to open in 2009or later

Increase in investments and other assets

Amount of net assets ： ¥9,490mn (up ¥1,896mn compared with FY12/07)
Equity ratio ： 29.3% (up 6.6 points compared with FY12/07)

Deposit ： Increase in deposits of Shin-Urayasu facility

Million yen
Current assets
Cash and deposit
Inventory assets
Advances
Prepaid expenses
Fixed assets
Tangible fixed assets
Buildings and structure s

Tools and equipment
Automotive equipment
Accumulate d de pre ciation

Land
Construction in progress

In t an gible fixe d asse t s
Investments and other assets

Deposit
Deferred assets
Total assets

FY12/07
8,445
7,019
451
208
218
24,926
19,306
17,5601,938
46-4,849
4,353
257
452
5,167
2,215
13
33,386

FY12/08
7,870
6,272
541
122
273
24,545
18,144
17,7092,160
53-6,631
4,421
430
370
6,030
2,387
11
32,427

Net assets

Change
-574
-747
90
-86
55
-381
-1,162149
221
7-1,782
68
173
-81
863
171
-2
-958

Million yen
Total liabilities
Current liabilities
Accounts payable
Short-term debt
Current portion of long-term debt

Current portion of bonds
Accrued amount payable
Advances received
Fixed liabilities
Bond
Long-term debt
Guaranty deposit
Net assets
Shareholders’ equity
Capital/capital surplus
Retained earnings
Valuation and translation adjustments

Total liabilities and net assets

FY12/07
25,791
13,338
1,462
4,881
2,309
436
454
1,141
12,453
1,702
9,721
548
7,594
7,611
1,106
6,504
-17
33,386

FY12/08
22,937
8,781
1,359
2,350
436
477
1,244
14,155
1,266
11,809
612
9,490
9,738
1,106
8,631
-247
32,427

Change-2,854-4,556-102-4,881
41
22
103
1,701
-436
2,088
64
1,896
2,126
2,126
-230
-958

Interest-bearing Debt

16

Significantly reduced interest-bearing debt balance compared with FY12/07 to restore financial soundness.
Year-end interest-bearing debt balance

Breakdown of long-term and short-term interest-bearing debts

Year-end interest-bearing debt balance down ¥3,187mn
compared with FY12/07
Operating CF remained high due mainly to increase in net
profit and increase in depreciation while year-end interestbearing debt balance decreased significantly compared with
FY12/07 due to lower investing CF.

R e d u c e d s h o r t-t e r m d e b t t o “ 0”Only capital investment funds including facility development
are covered by long-term interest-bearing debt. Regarding
working capital, maintain a sound financial standing that canbe covered by retained earnings and monthly sales.

Million yen
20,000

Short-term interest-bearing
debt balanceLong-term interest-bearing
debt balance

15,562
15,00019,05010,000

2,928

Short-term interestbearing debt balance
Million yen

15,862
2,786

3,125

0

2,928

3,125

FY6/06

FY12/06

Long-term interestbearing debt balance

12,0005,000

8,000
11,595

11,423

10,726

Short-term
debt

3,967
2,786

2,500

11,524

8,399

7,626

Current portionof bonds

6,616

Million yen

8,025

Current portion of
long-term debt

5,000

7,626
6,616

Short-term
debt

7,500

17,342

3,967

10,954-¥3,187mn comparedwith FY12/07

FY6/07

FY12/07

Long-term debt
Bond
11,595
11,423

8,025

8,399

FY6/06

FY12/06

FY6/08

FY12/08

13,075
10,726

13,0754,000
FY6/06

FY12/06

FY6/07

FY12/07 FY6/08

FY12/08

FY6/07

FY12/07

FY6/08

FY12/08

Interest-bearing Debt Outlook for Interest-bearing Debt Balance

17

Reduce interest-bearing debt procured as capital investment fund for existing facilities in a short period
through operating CF generated by the existing facilities.
Almost complete the repayment of interest-bearing debt except land acquisition
cost in FY12/14.

Existing interest-bearing debt is expected to be reduced substantiallyeach period
Financial improvement will raise the estimated equity ratio
to 33% in FY12/09

High operating
CF 有will 利supportthe債
financial
期 末子 負
残 高soundnessの 推 移Dept redemption period: 2.3 years (land acquisition cost excluded)
excluded)Collect investment fund in 2 years or so even if the estimatedoperating CF is the same as the previous period.

Outlook for the future year-end interest-bearing debt balance as of FY12/08

Estimated total amount of operating CF・Estimated year-end interest-bearing debt balance based on the current debt and redemption agreements (landacquisition cost excluded)
・The below chart does not include renovation costs and other additional debts for the future existing facilities.

When the estimated operating CF is on a par with FY12/08

Million yen

15,000Land
acquisition
cost for new
facilities in
Yokohama

15,862

Dept redemption period
when excluding landacquisition cost

3,728Interest-bearing debt balance÷Operating CF

2.3 years

12,50015,900 Million yen
15,0005,300
12,50010,60010,000

7,500

5,000

10,000
Otherinterestbearing
debt except
land
acquisition
cost

5,300

7,500

12,134
5,000

9,347
6,883

2,500

FY12/08

FY12/09

FY12/10

FY12/11

FY12/12FY12/13

FY12/14

5,300

5,300

10,600FY12/09

FY12/10

FY12/112,500

Consolidated Cash Flows18

Substantial increase in free cash flow, due to increased operating CF and decreased investing CF.
Consolidated

cash

FY12/07
Million yen

Operatingactivities

flow

FY12/08

Investingactivities

Financing
activities

6,625

5,389

6,164

c a s hf l o w

Free cash flow = Operating CF+ Investing CF

Million yen
Endingbalance

7,359

8,000
5,331

F r e e
4,000

3,333

2,000

4,000

63

FY12/05

0

FY12/06

FY12/07

FY12/04

0

FY12/08-2,000-1,990-2,055-4,000-3,655-3,121-4,000-8,000Operating activities

5,331

5,389

Investing activities- 10,490- 2,055

Financing activities

7,359- 3,6390- 156

Changes in cash and cash equivalents

2,200

- 461

Cash and cash equivalents at beginning of
year

4,425

6,625

Cash and cash equivalents at end of year

6,625

6,164

Exchange difference of cash and cash
equivalents

f a c t o r s

FY12/08

M a j o r

FY12/07

Million yen-5,158-6,000-10,490-12,000〇 Operating activities
Income before income taxes
Depreciation
Corporate taxes paid

¥4, 928million¥2,018million-¥2,777million〇 Investing activities
Payments for acquisition of tangible fixed assets-¥1,759million
Payments for guarantee deposits-¥304million〇 Financing activities
Changes in short-term debt-¥4,856million
Changes in long-term debt
¥1,979million
Payments for redemption of bonds -¥436million

19Consolidated Business Forecasts for FY12/09

20【Full year forecasts】
Domestic operations are expected to be the principal sales driver again in the current term. Exchange loss
will be reduced and we expect substantial sales and earnings growth YoY.
ChangeMillion yen
FY12/08 Actual
FY12/09 Forecast
AmountNet sales
Operating profit
Operating margin
Ordinary profit
Ordinary profit margin
Net profit
Net profit margin
EPS
Annual dividend per sharePct.

31,073
6,077

32,8006,200+ 1,726+ 122+ 5.6%+ 2.0%

19.6%

18.9%

- 0.7p

－

5,043

5,900

+ 856

+ 17.0%

16.2%

18.0%

+ 1.8p

－

2,453

3,200

+ 747

+ 30.4%

7.9%

9.8%

+ 1.9p－¥ 30, 065.64¥ 5,000¥39,215.69¥ 5,000+ 30.4%ｰ%【First half forecasts】
Million yen

Net sales
Operating profit
Ordinary profit
Net profit

FY12/08 Actual

14,312
2,410
2,075
1,047

FY12/09 Forecast

14,800
2,200
2,000
1,100

ChangeAmount

+ 487
- 210
- 75
+ 52

Pct.

+ 3.4%- 8.7%- 3.6%+ 5.0%

Strategies for Domestic Operations

Plan for FY12/09

21【 Domestic Operations Plan】
Currently, orders for existing facilities are favorable. We expect substantial sales again in the current term
due to the effect of opening new facilities.
 Orders for existing facilities are favorable that sales are expected to increase compared with FY12/08.
 Nagoya and Noseki facilities slated to open in spring 2009 will also contribute to sales increase.
 Aoyama facility will expand its ancillary facilities in autumn 2009 to change it into multi-type (3 guest houses) from the current double-type(2 guest houses).
 Average revenues per customer slightly decreased as a whole compared with FY12/08 due to increase in small ceremony plan.
 There are currently 4 guest houses (Noseki: 3, Aoyama: 1 to be additionally operated) slated to open that start-up cost is expected to slightly increase
compared with FY12/08.

Million yen

FY12/08
actualYoY change

FY12/09
forecast

AmountPct.

27,931

29,900+ 1,968+ 7.0%

Total guest houses at end of
period

43

47

+4

-

Multi-guest house type

28

34

+6

-

Double-guest house type

10

-2

-

Single-guest house type

5

5

-

-

6,352

7,000

+ 648

+ 10.2%

Net sales

No. of weddings

※

8

※

* Decrease in the no. of double-type compared with FY12/08 is caused by changing Aoyama facility to multi-type and is not because of facility closure.

Strategies for Overseas Operations Plan for FY12/09

22【 Overseas operations Plan】
Although the number of weddings held in Bali will increase steadily, weddings in Hawaii will decrease.
As a result, sales will decrease YoY.
 Despite the surcharge decrease and effect of the yen’s appreciation, we can not anticipate a rapid recovery in the Hawaiian wedding market
due to decrease in the number of flights and customers’ “cheap, near and short” travel trend.
 Relatively high revenue customers, our target, tend to shift to domestic weddings.
 Expects the number of weddings held in Hawaii and sales to decrease also because of price falling associated with intensifying competition.
 Even in a smaller market, we will reorganize to a size which we can definitely raise profits
・ Cost-cutting effect due to merger and abolition (Sannomiya, Kyoto, Shinsaibashi, Omiya) of salons in Japan・・・down ¥50mn
・ Rent revision in Hawaii, cost-cutting effect due to withdrawal of projects・・・down $700 thousand A steady increase in the number of weddings held in Bali in Indonesia will support sales in the Overseas Department but sales will decline as awhole YoY.
 Continue with Destination Weddings

YoY change
FY12/08 actual

FY12/09 forecast
AmountNet sales
Year-end directly operated
and exclusive chapels
No. of weddings¥ 3,141million

Pct.

¥ 2,900million - ¥ 241million

8- 7.7%

9

+1

-

1,750

- 499

- 22.2%※

2,249•The no. of weddings held (about 700) in Saint Andrew’s Church which we signed an exclusive use agreement in Jan. 2009 are expected to be added aswell as the above no. of weddings held.

23

Future Strategies

24

Continue with new business strategies aimed at continuous and steady growth
Strategy up to FY12/07

Strategies for FY12/08 onwards

Strategies for domestic operations

Strategies for domestic operations

1.Aggressively opened 5 to 8 guest
houses annually
2. Opened in major cities andgovernment-designated cities

1.Region’s No. 1 facility strategy (open large facilities in major cities,
incremental development in adjacent areas)
2. Target a broad range of needs for wedding ceremonies (Japanese ceremonies,
small ceremonies and ceremony-only, etc.)

3. Strengthened existing facilities
through re-innovation

3. Efficiently strengthen existing facilities through re-innovation
4. Approach towards revitalization business

Strategies for overseas operations

Strategies for overseas operations

4. Expansion and strengthening of
directly operated salons
5. Strengthening of alliance sales
strategy

5. Continuation of earnings improvement measure through reduction of fixedcosts
6. Improve sales while reducing investments (tie-up with existing churches,
re-innovation of facilities)
7. Continue working on Destination Weddings

Corporate strategies

Corporate strategies

6. Diversification of fund procurement
method
7. Strengthening of human resources
development

8. Continue strengthening financial standing towards a better financial standing
9. Continue strengthening human resources development

Strategies for Domestic Operations Strategies for Opening Facilities

25

Open mainly large facilities in the Tokyo area (Tokyo, Kanagawa, Chiba, Saitama), Chukyo region andKansai region.
Mid-term basic policy for opening new facilities

New facilities slated to open (current plan only)

Open mainly new large facilities【No. of guest houses by region】

C o r p o r a t e
T

o

k

y

o

T o k y o a r e a(Kanagawa, Chiba,
S a i t a m a )
Other

areas

Kansai (Osaka,K y o t o )NTokyo Kanagawa
Osaka

NagoyaNew facilities to beopenedEnd of2008

Concentrate facility openings in regionswith large market size
No. 1 facility strategy in regions where
facilities are located

a

g

o

y

a

2009

End of
2010

2010

43

+4

+6

53

8

+1

-

9

15
3
10
7

+3

+6
-

21
3
10
10

【No. of guest houses by type】
End of2008

Saitama Chiba
C o r p o r a t e
Multi-type
Double-type
Single-type

43
28
10
5

New facilities to beopened

2009

+4
+6
※
-2
-

2010

+6
+6
-

End of
2010

53
40
※
8
5

•Decrease in the no. of double-type is caused by changing Aoyama facility tomulti-type and is not because of facility closure.

Strategies for Domestic Operations Plans for New Facility Openings
Open large facilities in Noseki, Nagoya in spring 2009 and Iseyama, Yokohama in spring 2010 aiming forregions’ no. 1 facilities.
Open the largest facility with 2 chapels and 6 guest houses
Open our first facility in the port area in Nagoya region.
St. Grace Cathedral

Iseyama-Weddinghills Yokohama (tentative name)

St. Grace Cathedral
Slated to open in spring 2009 3 Guesthouse Type

Iseyama - Weddinghills Yokohama
Slated to open in spring 2010 6 Guesthouse TypeOpen our second multi-guest house in the port area in Nagoya
region, which is about 20 min. from Nagoya station.
An authentic Gothic style cathedral with colorful antiquestained glass windows acquired from a church in England.
Also offer Japanese ceremonies in addition to guest houseweddings at 3 guest houses with a garden surrounded by blues k y ,
w a t e ra n d
g r e e n e r y .

Open the largest facility with 2 chapels and 6 guest houses on
the location which is only 7 min. walk from the North exit of
S a k u r a g i c h o s t . i n Y o k o h a m a .
An authentic stained glass windowed cathedral with a highsteeple, and 2 chapels “surrounded by water”. An authentic
western style wedding at a nearby Iseyama Kodai Shrine isavailable.
Construct 6 different types of guest houses which meet wideranging needs. Offer a guest house wedding feeling the lightand wind at an open guest house with a garden terrace full ofgreenery.

26

Strategies for Domestic Operations Target a Broad Range of Needs for Wedding Ceremonies

27

Offer Japanese ceremonies, small ceremonies and ceremony-only plans to meet a diverse range ofcustomer needs.
“Original Japanese ceremony” for couples who want Japanese
Provision of the small ceremony plan
garments and traditions
To serve customers who want a Japanese ceremony, we have expanded
the selection of products and services to offer the new “Hana Biyori”
Japanese wedding program.

Offer a plan for small ceremonies that allows couples
to rent a location entirely for themselves and as few
as 10 guests.

An original Japanese wedding that
only Best Bridal can offer

The Hana Biyori Wedding
Takes place in elegant surroundings
Filled with Japanese traditions and styles
A banquet that everyone can enjoy

Provision of the ceremony-only plan
Use large chapels at our guest houses to holdweddings for couples who want only a ceremony.
Starting in this fiscal year, our Shin-Urayasu salon is offering acomprehensive package of services for an “original Japanese wedding.”
These weddings draw on our experience, expertise and salon network
to hold ceremonies that incorporate a full range of Japanese traditions
and customs.

Strategies for Domestic Operations Promotion of the “Region’s No. 1 facility” strategy
Aim for the Region’s No. 1 facility by responding to various wedding styles while offering wedding
receptions of diverse concepts.
Aim for overwhelming No. 1 facilities in regions where facilities are located as well as attract customers
who shifted to hotel weddings.
Weddingh a l l s

Chapels and an authentic temple which create various wedding scenes

Stained glass cathedral

Guest houses

French style

Ocean view church

Church surroundedby forest

Church surroundedby water

An authentic temple

Western style wedding

Japanese style

Bali style

Diversified guest houses which differ in type and concept

American style

British style

Italian style

Promote the “Region’s No. 1 facility” that meet a diverse range of customers’ wedding needs

Oriental style28

Strategies for Overseas Operations

29
29

C o n t i n u e w o r k i n g o n D e s t i n a t iio
o n W e ddings. Also, opened a new fac ility in Hawaii.
Continue working on Destination Weddings

Opened a new facility in Hawaii

Continue working on Destination Weddings by offering our service
quality and brand power through direct planning and management.

Opened a new facility that matches the current market
trend and needs to always offer new value to customers.

THE HOUSE OF IRIS
2009.02 OPEN

Korea
380 couples
Japan
338 couples
Hawaii144 couples

Bali

5 couples
FY12/05

FY12/06

FY12/07

FY12/08

Hawaii 7 facilities

Bali 2 facilities

Korea 2 guest houses

Offer a full banquet from wedding ceremony to wedding party
within our luxury premises with a chapel and private garden to 2 couples per day.

A daylight wedding which
you can have the blue sea,sky and greenery to yourself

A twilight wedding shiftingfrom sunshine to sunset

Corporate Data
N

a

m

e

30

BEST BRIDAL Inc.

Established

October 1996

Head

office3-11-10 Higashi, Shibuya-ku, Tokyo

CE

Masayuki Tsukada, PresidentO

C a p i t a l¥472million

E m p l o y e e sConsolidated: 890 Non-consolidated: 349

Shares issued

81,600 shares No trading unit

Shareholders

1,015

A c t i v i t i e s

1. Design, planning, concepts and operations for wedding halls, guest houses, chapels and associated facilities
2. Planning, concepts and operations for banquets, buffet dinners and parties
3. Planning, concepts and operations for restaurants and cafes
4. Design, planning, concepts and operations for chapels and guest houses outside Japan
5. Planning, production and sale of overseas weddings and receptions and the products or these events

Consolidated
subsidiaries

Equity-method
a f f i l i a t e

6. Travel agency business based on the Travel Law
Best Bridal Hawaii, Inc. (U.S subsidiary)
Best Planning Inc.
A Lliliale, Inc.
Acqua Grazie, Inc.
Best Bridal Korea, Inc. (Korea subsidiary)
PT. Tirtha Bridal (Indonesia subsidiary) and 1 other

Marizin Inc

As of December 31, 2008

31

This presentation was prepared for the purpose of explaining the business activities, strategies and operating results of Best Bridal and is not t solicitation topurchase securities issued by the Company. Except where noted otherwise, all financial and corporate data are as of December 31, 2008. Opinions, forecasts
and other statements not based on historical facts represent the judgments of management at the time this presentation was prepared. Best Bridal makes noguarantees that these statements are accurate or complete. Furthermore, forecasts and other forward-looking statements are not promises about the future
and may be revised without prior notice.

IR contact: Corporate Planning Department, Administrative Headquarter, BEST BRIDAL Inc
Tel：03-5464-0081 e-mail ：ir–sec@bestbridal.co.jp