TSE 1st, CODE 24180

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

Best Bridal Inc.
Results of Operations for the Year Ended December 31, 2010

February 17,2011

Contents

1

1.1.FY12/10
FY12/10Financial
FinancialSummary
Summary

2.2.BusinessBusinessForecasts
Forecastsfor
forFY12/11
FY12/11P3 FY12/10 Summary of Consolidated Business Results

P17 Consolidated Business Forecasts for FY12/11

P4 Consolidated Business Results

P18 Strategies for Domestic Operations ― Business forecasts

P5 Consolidated Gross Profit

P19 Strategies for Overseas Operations ― Business forecasts

P6 SG&A Expenses and Start-up Cost
P7 Consolidated Operating Profit, Ordinary Profit and Net Profit
P8 Summary of Domestic Operations
P9 Domestic Operations ― Existing Outlets (non-consolidated basis)
P10 Domestic Operations – New Outlet Iseyama Hills
P11 Domestic Operations – Operation of Outlets
P12 Summary of Overseas Operations
P13 Overseas Operations ― Facilities

3.3.Future
FutureStrategies
Strategies
P21 Future Strategies
P22 Strategies for Domestic Operations – Strategies for Opening Outlets
P23 Strategies for Domestic Operations– Plans for Opening New Outlet Omiya Rikyu
P24 Strategies for Domestic Operations

P14 Consolidated Balance Sheets
P15 Consolidated Cash Flows– Hotel Intercontinental Tokyo Bay
P25 Strategies for Domestic Operations– Development of Business Portfolio
P26 Corporate Data

2

3

FY12/10 Summary of Consolidated Business Results
ActualMillion yen

FY12/09

Net sales

YoY change

FY12/10AmountPct.

32,491

38,444+ 5,952+ 18.3%

Domestic operations Net sales

29,97835,641+ 5,663+ 18.9%Overseas operations Net sales

2,513

2,802

+ 289

+ 11.5%

Operating profit

6,269

7,221

+ 952

+ 15.2%

Ordinary profit

6,167

6,946

+ 779

+ 12.6%

Net profit

3,390

3,774

+ 384

+ 11.3%¥41,548.42¥15,418.91

Consolidated EPS
Annual dividend per share※※¥5,000※¥4,200+¥1,569.44※+¥866.66※ The company conducted a 3-for-1 stock split as of October 1, 2010.
Consolidated EPS for FY12/09 when calculated using the shares outstanding at the end of Dec. 2010 is ¥13,849.47.
Also, annual dividend per share for FY12/09 is ¥3,333.33 (2Q dividend: ¥2,500; Year-end dividend: ¥833.33).

Domestic operations were the key sales driver. The performance of overseas operations also improved marking record-high net sales
and profits.

● Domestic operations continued to be the key sales driver leading consolidated net sales to hit a record high for※15
consecutive periods since the company’s establishment.
※● Operating profit and ordinary profit hit record highs for 15 consecutive periods since the company’s establishment due
to increase in gross profit and cut in SG&A expenses as a result of effective business operations.
● Big increase in projected year-end dividend due to favorable performance and commemorative dividend for the 15th
anniversary of the company’s establishment. As a result, the company’s projected year-end dividend has been revised.
※ Excluding FY12/00 which was a transitional 5-month accounting period due to a change in the fiscal year end.

4Consolidated Business Results
Change in net sales

Change in operating profit

Change in ordinary profit

Change in net profit

Million yen

Million yen

Million yen

Million yen

38,444

7,221

Operating profit
6,077

32,491

6,946

Ordinary profit
6,269

3,774

Net profit
3,390

6,167

31,07328,259

5,043
4,805

2,453

4,534
2,104

2007

2008
Million yen

2009

2010

2007

2008

FY12/07

2009

2010

2007

FY12/08

2008

2009

2010

2007

FY12/09

2008

2009

2010

FY12/10

Net sales

28,25931,07332,491

38,444

Operating profit

4,805

6,077

6,269

7,221

Ordinary profit

4,534

5,043

6,167

6,946

Net profit

2,104

2,453

3,390

3,774

5

Consolidated Gross Profit
Million yen

FY12/09

YoY change

FY12/10AmountPct.

Consolidated gross profit

11,97814,148+ 2,170+ 18.1%

Domestic operations

11,232

13,386+ 2,154+ 19.2%

Overseas operations

746

761

+ 15

+ 2.1%

FY12/09

FY12/10

YoY change

36.9%

36.8%

△ 0.1pDomestic operations

37.5%

37.6%

+ 0.1pOverseas operations

29.7%

27.2%

△ 2.5pConsolidated gross profit margin

Increase in gross profit in domestic and overseas operations boosted consolidated gross profit.
【 Domestic operations】● Gross profit increased YoY due to favorable performance of existing outlets and contribution of new outlets opened in
FY12/09 and FY12/10.
● Gross profit margin remained almost the same YoY.

【 Overseas operations】● Gross profit increased YoY due to higher sales. Because of rise in pct. of travel sales, gross profit margin declined YoY.

6

SG&A Expenses and Start-up Cost
【 Selling and general administrative expenses】
Million yen

FY12/09

YoY change

FY12/10AmountPct.

SG&A expenses

5,708

6,926

+ 1,218+ 21.3%

SG&A expenses margin

17.6%

18.0%

+ 0.4p-Increased YoY due mainly to opening new large outlet and increase in advertising expenses toward stronger brand power● Advertising expenses increased ¥278 million YoY mainly because of starting TV commercials toward stronger brandpower. (vs. pct. of sales remains flat)● Personnel expenses associated with the opening of Iseyama outlet increased but maintained the company-wide low cost
operations due to effective business operations.

【 Start-up cost】
Million yen

FY12/09

YoY change

FY12/10AmountPct.

Start-up cost

314

343

+ 28

+ 9.0%

Vs. pct. of sales

1.0%

0.9%

△ 0.1p-※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.

Increased YoY for recording pre-operating expenses associated with Iseyama outlet in Yokohama and expansion of Omiya outlet● With the opening of Iseyama outlet in Yokohama in May, the company recorded cost of consumables, etc. at the time of
opening. (Cost of sales)● Recorded “personnel expenses, rental expenses, etc.” before opening as pre-operating expenses. (SG&A expenses)

7

Consolidated Operating Profit, Ordinary Profit and Net Profit
Million yen

FY12/09

YoY change

FY12/10AmountPct.

Operating profit

6,269

7,221

+ 952

+ 15.2%

Operating margin

19.3%

18.8%

△ 0.5p-Ordinary profit

6,167

6,946

+ 779

+ 12.6%

Ordinary profit margin

19.0%

18.1%

△ 0.9p-

Net profit

3,390

3,774

+ 384

+ 11.3%

Net profit margin

10.4%

9.8%

△ 0.6p-Operating profit, ordinary profit and net profit reached record highs as a result of increase in earnings in the domestic operations【Operating profit】● Continued to mark a record high as steady earnings increase in domestic operations absorbed increases in expense for
opening new large outlet and personnel expenses and advertising expenses【Ordinary profit】● Recorded an exchange loss of ¥198 million (a ¥45 million exchange gain in FY12/09) due to appreciation of the yen
against the dollar and lower won.Non-operating profit and expenses worsened YoY but were absorbed by operating profit
and hit a record high.

【Net profit】● Recorded ¥162 million as an extraordinary loss including loss on disposal of fixed assets but was absorbed by a big
increase in ordinary profit, and achieved a record high.

8

Summary of Domestic Operations

Net sales

YoY change

FY12/09

FY12/10¥29,978 million¥35,641 million +¥5,663million

AmountPct.

+ 18.9%No. of guest houses at endof period

47

53

+6

-

Of which multi-guest house type

34

40

+6

-

Of which Double-guest house type

8

8

-

-

Of which Single-guest house type

5

5

-

-

No. of weddings

6,952

8,157

+ 1,205+ 17.3%Operating rate ※１

65.5%

67.4%

+ 1.9p-¥4,203 thousand +¥11 thousand+ 0.3%

Average revenue per couple※２¥4,192 thousand※1：Operating rate does not include the no. of weddings held through outsourced operations of Best Hospitality Heart Inc.
※2：Average revenue per couple does not include “ceremony-only”, “general banquet” and “outsourced operations of Best Hospitality Heart Inc.”

Net sales of domestic operations increased substantially YoY due to increase in existing outlet sales and contribution of
new outlets● Favorable performance of existing outlets and Noseki outlet in Nagoya, which opened in FY12/09, contributed to higher
revenues.
● Iseyama outlet in Yokohama opened in May but made a big contribution to increase in revenues and improvement inaverage revenue per couple for getting a good start● Opening of Iseyama outlet in Yokohama raised the number of guest houses at the end of the year from 47 to 53.

Domestic Operations ― Existing Outlets (non-consolidated basis)
Million yen

Net sales
Gross profit
Gross profit margin
SG&A expenses
SG&A expenses margin
Operating profit
Operating margin
No. of weddings
Operating rate
Average revenue per couple ※FY12/09

9

YoY change

FY12/10AmountPct.

28,811
8,716

29,119
8,558

+ 308
△ 157

+ 1.1%△ 1.8%

30.3%

29.4%

△ 0.9p

-

1,700

1,773

+ 73

+ 4.3%

5.9%

6.1%+ 0.2p

-

7,016

6,784

24.4%

23.3%

△ 231
△ 1.1p△ 3.3%
-

6,769
+ 87
67.5%
+ 1.5p¥4,163 thousand △¥23 thousand+ 1.3%△ 0.6%

6,682
66.0%¥4,187 thousand

Target outlets: Nihonbashi, Shirogane, Yokohama, Osaka, Sendai, Nagoya-Hoshigaoka, Shinurayasu, Omiya, Aoyama, Ichigaya, Shinsaibashi, Nagoya-Marunouchi,
Kyoto, Nagoya-Yagoto, Chiba, Akasaka, Odaiba (total: 17 outlets).
※Average revenue per couple does not include “ceremony-only” and “general banquet”

Favorable performance of existing outlets raised the number of weddings held and net sales. Slight decrease in operating
profit YoY.
● Strong order activities raised the number of weddings held at existing outlets. Net sales increased YoY for working on
various marketing activities.
● Average revenue per couple slightly decreased YoY as the number of weddings held at small-group guest houses pushed
the overall average down
● Drop in average revenue per couple slightly reduced operating profit and operating margin YoY.

10

Domestic Operations – New Outlet Iseyama Hills

Opened in May

A large outlet aiming to be the region’s No.1
A good location, which is only 5-minute walk from
Sakuragicho St. in Yokohama
Our first 2 chapels. Also handles Shinto Shrine
weddings
6 guest houses with different design motifs

St. Grace Cathedral

Sanctuary court

Shinto shrine weddings

A towering spire and bathed in lightfrom stained glass windows

The church of waters with aresort-like atmosphere

Neighboring Iseyama Jingu can beused for an authentic shrine weddingDomestic Operations – Operation of Outlets

11

Multi-guest
house type

New Iseyama (6)Yokohahama（4）

Aoyama（3）Shinurayasu（5）Omiya（4）Nagoya-yagoto（4）Ngoya-noseki（3）Osaka（5）Kyoto（3）Sendai（3）Shirogane（2）Chiba（2）

Hoshigaoka（2）Shinsaibashi（2）10 facilities
40 guest
housesDouble-guest
house type
4 facilities
8 guest houses

Facilities with “New”
New
opened during
FY12/10. Parentheses
show the no. of guest
houses of each facility

Single-guest
house type
5 facilities
5 guest houses

No. of guest
houses byregionNihonbashi（1）Ichigaya（1）Okasaka（1）TokyoTokyo area

Nagoya921

Odaiba（1）Nagoya-marunouchi（1）Kansai

10

Other areas

10

Total

3

53

12

Summary of Overseas Operations

Net sales

YoY change

FY12/09

FY12/10¥2,513 million¥2,802 million +¥289 million+ 11.5%－+ 13.9%AmountPct.

99No. of weddings

2,278

2,594

－
+ 316

Hawaii

1,815

2,225

+ 410

+ 22.6%

Bali

463

369

△ 94

△ 20.3%

Hawaii/Bali DW

335

471

+ 136

+ 40.6%Year-end Facilities※The average price of overseas operations is not presented since revenue per couple varies significantly depending on with or without travel fees.

The number of weddings held and net sales increased as a result of rapid recovery in weddings in Hawaii and focusing on DWs.

● Direct sales in Japan and the number of DWs held increased YoY resulting in big increase in the entire sales of overseas
operations● Rapid recovery in weddings in Hawaii due to a decline in fuel surcharge and market recovery resulting from the yen’s
appreciation● Weddings in Bali decreased YoY due to the effect of Japan Air Line’s termination of direct flights● The number of DWs showed steady increase in FY12/10.

Overseas Operations ― Facilities

13【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

House of Iris

【 Exclusive use 】【 Exclusive use 】

St. Andrew’s Cathedral

Waioli Chapel

2 directly operated facilities in Bali

1 other facility

Tirtha Uluwatu

Tirtha Luhur Uluwatu

14

Consolidated Balance SheetsA
A ss ss ee tt ss

Liabilities
Liabilities andand netnet assets
assetsChanges in tangible fixed assets

Interest-bearing debt

Increase in buildings and structures ： Increase in outlet(Iseyama, Yokohama) opened in 2010
Increase in tools, furniture and fixtures： Increase in outlet (Iseyama, Yokohama)opened in 2010
Decrease in construction in progress ： Shift to buildings and structures due to the
opening of Iseyama outlet in Yokohama
Million yen

Current assets
Cash and deposits
Accounts receivable
Products
Raw materials and inventory goods

Fixed assets
Tangible fixed assets
Buildings and structures

Others
Accumulated depreciation

Land
Construction in progress

Intangible fixed assets
Investment and other assets

Investment securities
Lease and guaranteedConstructioni
assistance
f

d

i bl

Deferred assets
Total assets

Dec. 31, ’09

Dec. 31, ’10

9,536
7,933
72
95
303
27,985
20,84918,5502,460
ᇞ 8,383
4,569
3,652
310
6,826
903
2,708
1,151
8
37,53010,448
8,581
317
92
384
30,42920,932
23,3522,958
ᇞ 10,279
4,563
337
175
9,320
1,819
4,011
1,020
14
40,891

Change

912
647
245
ᇞ2
81
2,443
83
4,802
498
ᇞ 1,896ᇞ5
ᇞ 3,315
ᇞ 135
2,494
916
1,302
ᇞ 130
5
3,361

Amount of interest-bearing debt: ¥ 15,773mn(down ¥1,298million from Dec. 31, ’09)

Net assets

Net assets : ¥15,832mn （Up ¥3,285mn from Dec. 31, ’09）

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
Proposition for loss on cancellation of lease contract

Net assets
Shareholders’ equity
Capital/capital surplus
Retained earnings
Valuation and translation adjustments

Minority interest
Total liabilities and net assets

Dec. 31, ’09

Dec. 31, ’10

24,984
9,511
1,484
300
2,433
376
1,976
1,453
15,472890
13,072261
12,546
12,6791,106
11,573
ᇞ 133
37,53025,05910,105
1,733
2,789
356
2,164
1,196
14,954984
11,643205
15,832
1,604
1,106
14,939ᇞ 214
40,891

Change

75
593
249
ᇞ 300
356
ᇞ 20
187
ᇞ 256
ᇞ 518
94
ᇞ 1,428
ᇞ 56
3,285
3,366
3,366
ᇞ 80
3,361

Consolidated Cash Flows

15【 Free CF increased for 3 consecutive periods due to strong operating CF while investing in new outlets 】
Consolidated
FY12/09
Million yen

Operating CF

Investing CF

cash

flow

F r e eFY12/10
Financing CF

c a s hf l o w

Free cash flow = Operating CF+ Investing CF
Ending balance

Million yen

FY12/05

FY12/06

FY12/07
FY12/08

FY12/10

主6,287△ 5,375
911
760

6,272
△ 3,888
2,383△ 1,690

な

Exchange difference of cash and cash
equivalents

△ 10

△ 44

Changes in cash and cash equivalents

1,661
6,164
7,825

647
7,825
8,473

Million yen
Operating cash flow
Investing cash flow
Free cash flow

Cash and cash equivalents at end of year

¥6,784million¥ 2,310million△ ¥ 3,234million〇 Investing CF
Payments for lease and guarantee deposits△ ¥ 2,441million△ ¥ 696million

因Cash and cash equivalents at beginning of year

〇 Operating CF
Income before income taxes
Depreciation
Corporate taxes paid

FY12/10

要Financing cash flow

FY12/09

FY12/09〇 Financing CF
Changes in short-term debt
Changes in long-term debt
Payments for redemption of bonds
Dividends paid

△ ¥ 300million△ ¥ 1,072million△ ¥ 426million△ ¥ 407million

Payments for acquisition of tangible fixed assets

16

17

Consolidated Business Forecasts for FY12/11
Million yen

FY12/10
ActualYoY change

FY12/11
Forecast

AmountPct.

Net sales

38,44443,000+ 4,555+ 11.8%Operating profit

7,221

7,250

+ 28

+ 0.4%

18.8%

16.8%

△ 2.0p

－

6,946

6,950

+3

+ 0.1%

18.1%

16.2%

△ 1.9p

－

3,774

3,500

△ 274

△ 7.3%

9.8%

8.2%△ 1.6p－¥15,418.91¥14,297.38△¥1,121.52

Operating margin
Ordinary profit
Ordinary profit margin
Net profit
Net profit margin
Consolidated EPS
Annual dividend per share※¥4,200¥2,000※△ ¥533.33※The company conducted a 3-for-1 stock split as of October 1, 2010.Breakdown of annual dividend per share for FY12/09 is ¥2,500 at the end of 2Q, year-end dividendof ¥1,200 and commemorative dividend of ¥500, and the amount is based on the stock split.

Domestic operations are expected to be the key sales driver resulting in sales increase. Change in accounting standards will
reduce net profit.

● Domestic operations will continue to be the key sales driver. As a result, the company expects consolidated net sales toreach a record high for 16 consecutive periods since its establishment.
● Operating profit and ordinary profit are also expected to hit record highs for 16 consecutive periods*. Expect profit
margin to decline for starting a hotel business.
● Net profit down YoY for recording asset retirement obligations in prior years associated with the change in accounting
standards (¥460 million) as an extraordinary loss.
* Excluding FY12/00 which was a transitional 5-month accounting period due to a change in the fiscal year end.

Strategies for Domestic Operations ― Business forecasts
FY12/10
ActualNet sales※

18

YoY change

FY12/11
Forecast¥35,641million※

AmountPct.

¥40,350 million ※+¥4,708 million+ 13.2%

Total guest houses at end of
period

53

57

+4

-

Of which multi-guest house type

40

44

+4

-

Of which Double-guest house type

8

8

-

-

Of which Single-guest house type

5

5

-

-

8,157

8,750

+ 593

+ 7.3%

No. of weddings※Net sales of domestic operations for FY12/10 include consolidated subsidiary Best Hospitality Heart Inc.’s consolidated net sales of ¥1,333 million and FY12/11
forecast of domestic operations net sales includes new consolidated subsidiary Hospitality Network Inc.’s consolidated net sales of ¥5,450 million.
The amount of increase in domestic operations sales for FY12/11 excluding the effect of both companies is expected to be ¥591 million.

Expect continued increase in sales due to rise in sales from a new consolidated subsidiary, expansion of Omiya outlet andcontribution of Iseyama outlet for the full year

● Expect increase in sales due mainly to rise in sales from a new consolidated subsidiary Hospitality Network, contributionof Iseyama outlet opened in May 2010 for the full year and expansion of Omiya outlet to be opened in 2011.
● Expect a slight decrease in existing outlet sales because of predicting the average revenue conservatively.
● 4 guest houses (expansion of Omiya outlet) were newly opened raising the number of guest houses from 53 to 57 at theend of the year.
● Expect a big increase in the number of weddings held for the same reason as in increase in net sales.

Strategies for Overseas Operations ― Business forecasts

Net sales
No. of year-end directly operated
and exclusive chapels
No. of weddings

19

YoY change

FY12/10
ActualFY12/11
Forecast¥2,802 million¥2,650 million △ ¥152 million△ 5.4%

Amount

Pct.

9

8

△1

-

2,594

2,670

+ 76

+ 2.9%

Favorable orders expect to raise the number of weddings held but forecast a drop in sales due to the yen’s appreciation● The positive factor is that the number of travelers will increase due to a decline in fuel surcharge and yen’s appreciation
against the dollar, while the negative factor is that travel expenses will decrease. As a result, sales are expected to decrease.
● Expect the number of weddings held in Hawaii to increase due to the improvement of the market environment.
● The number of weddings held in Bali is expected to increase YoY as a results of rise in DWs although the effect of theJapan Air Line’s termination of direct flights will continue.
● Expect a continued increase in the number of DWs.
● Decrease in 1 facility out of exclusive chapels in Hawaii due to the termination of contract. (Minimal impact on net sales)

20

Future Strategies

21

We will continue to “create a new value” by focusing on potential demand for the new era.

Strategies for Domestic Operations
1. Region’s No.1 outlet strategy (opening of large outlets in major cities, incremental development adjacent areas, etc.)
2. Proposals for various new wedding needs～a flexible product design (shotgun marriage, second marriage, ceremony-only, etc.)
3. Efficiently strengthen existing outlets through re-innovation
4. Strengthen efforts towards after-party business
5. Approach towards revitalization business

Strategies for Overseas Operations
6. Raise the outlets’ operating rate through strategic business alliance with Kuraudia
Co., Ltd. in Hawaii
7. Provision of weddings that meets the diversified customer needs in Hawaii(cathedral weddings, guest house weddings, etc.)
8. Continue to take an active approach towards Destination Weddings (DW)

Corporate Strategies
9. Continue to further strengthen financial base
10. Continue to strengthen the hiring of new graduates and development of human resources
11. Further strengthen the governance function and compliance of the entire group including subsidiaries

22

Strategies for Domestic Operations – Strategies for Opening Outlets

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

New outlets slated to open
【 No. of guest houses by region 】

Open mainly new large facilities

End of 2009

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

Osaka

Nagoya2011

End of 2011

Corporate

53

+4

57

T o k y o9-9Tokyo area
(Kanagawa, Chiba, Saitama)

21

+4

25

Other areas

3

-

3

K a n s a i
Kyoto)

10-

10

N a g o y a

10

-

10

End of 2009

New facilities
2011

End of 2011

53
40
8
5

+4
+4
-

57
44
8
5

(Osaka,Tokyo Kanagawa

New facilities【 No. of guest houses by type 】

Saitama Chiba
Corporate
Multi-type
Double-type
Single-typeStrategies for Domestic Operations – Plans for Opening New Outlet Omiya Rikyu

23

Further expand Omiya outlet, which is performing well, in the spring of 2011, aiming for the region’s No.1 outlet in Saitama.

Omiya - ArtGrace
WEDDING CHATEAUX

4 Guesthouse Type＋Omiya Rikyu Adjacent to the existing outlet 4 More Guesthouse
Further develop toward region’s overwhelming No.1 outlet by responding to various wedding needs
and enhancing amenities
Enhance amenities,
including anauthentic Japanesegarden and a large
lobby

Resort-styleceremonies are also
possible, including at apenthouse that floats
on waterExcellent weddinghalls including
aquatic temple andchurch surrounded bywater
Aquatic temple

A l s oChurch surroundedby waterEstablish 2 guesthouses specificallyfor Japanese-style weddings

Larger size of this location is expected to raise operating
efficiencies and profitability
Part of the above pictures of garden, wedding halls and guesthouses is a rendering

24

Strategies for Domestic Operations – Hotel Intercontinental Tokyo Bay
Turned Hospitality Network into a subsidiary and started operating Hotel Intercontinental Tokyo Bay
Hotel Intercontinental Tokyo Bay
High potential as a wedding facility which takes over a high-quality
hospitality of Intercontinental Hotels&Resorts
Convenient as it is direct from Yurikamome line’s “Takebashi” station
Luxurious atmosphere of the city with views of Tokyo Bay and Rainbow Bridge

Accommodations that can respond to guests coming from afar
Introduce the company’s knowhow and human resources with an aim to shift to a highly profitable hotelwith wedding business at the core.

Past● Mainly accommodations andrestaurant sales⇒Severe price competition among hotels

FutureIntroduced the company’s
knowhow and personnel● Parties mainly for corporate use⇒Decline in demand due to relocation ofcompanies surrounding the hotel,
construction of new hotels in theneighborhood and sluggish economy● Foreign guests decreased after the
Lehman shock

Activate the entire hotel byactivating wedding businessTo a core facility in Tokyo● Shift to hotel centered on wedding● Other than weddings, attract
various demands including
・Celebrations
・Anniversaries
・Parties & gatherings
for individuals

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Strategies for Domestic Operations – Development of Business Portfolio

With various business forms, achieve financial soundness while developing a stable and highly profitable business portfolio.

HotelStart operating Hotel Intercontinental
Tokyo Bay following the NagoyaYagoto outlet.
Introduce the company’s humanresources and knowhow and shift thebusiness model to hotel business withwedding business at the core aiming torealize high profitability

Conventional outlet
Develop outlets mainly in large
markets including the Tokyo
metropolitan area, Chukyo area andKansai.
Implement regular, effective andefficient re-innovation to realize highcompetitiveness of outlets and highprofitability.

Hotel Intercontinental Tokyo Bay

Large outlet
Increase the no. of weddings halls byenlarging the outlets and further enhanceamenities.
Compared with conventional outlets,
the investment amount will increase
but able to attract more customers andrealize high profitability.

Iseyama Hills

Revitalization
Use existing facilities to open a newoutlet in a short period of time and at
a lower investment amount comparedwith constructing a new outlet.
Revitalize business in a short periodof time by introducing Best Bridal’s
knowhow.

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Corporate Data
N

a

m

e

BEST BRIDAL Inc.

E s t a b l i s h e dOctober 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: 1,063 Non-consolidated: 401

Shares244,800 shares No trading unit

issuedShareholders

4,688

A c t i v i t i e s

1. Planning, design, operation, management and consulting of hotels, restaurants, wedding halls andother related facilities in Japan and overseas
2. Planning, operation, implementation and introduction of meals, banquet and parties
3. Travel agency business based on the Travel Law
4. Other incidental business

Consolidated
subsidiaries

Equity-method
a f f i l i a t eBest Planning Inc.
Acqua Grazie, Inc.
Best Hospitality Heart Inc.
Best Bridal Hawaii, Inc. (U.S subsidiary)
Best Bridal Korea, Inc. (Korea subsidiary)
PT. Tirtha Bridal (Indonesia subsidiary)
Marizin Inc※ As of December 31, 2010

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This presentation was prepared for the purpose of explaining the business activities, strategies and operating results of Best Bridal and is not t solicitation to purchasesecurities issued by the Company. Except where noted otherwise, all financial and corporate data are as of December 31, 2010. 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 no guarantees 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: Public IR, BEST BRIDAL Inc

TEL: +81-3-5464-0081

e-mail: ir – sec @ bestbridal . co . jp