TSE Mothers, CODE 24180

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

Best Bridal Inc.
Results of Operations for the Year Ended December 31, 2009

February 19,2010

Contents

1

1.1.FY12/09
FY12/09Consolidated
ConsolidatedFinancial
FinancialSummary
Summary

2.2.BusinessBusinessForecasts
Forecastsfor
forFY12/10
FY12/10P3 FY12/09 Summary of Consolidated Business Results

P19 Consolidated Business Forecasts for FY12/10

P4 Consolidated Business Results

P20 Strategies for Domestic Operations ― Business forecasts

P5 Consolidated Gross Profit

P21 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 ― Order Backlog
P10 Domestic Operations ― Operation of Outlets

3.3.Future
FutureStrategies
Strategies

P11 Domestic Operations ― Existing Outlets (non-consolidated basis)
P23 Future Strategies
P12 Summary of Overseas Operations
P13 Overseas Operations ― Facilities

P24 Strategies for Domestic Operations ― Strategies for Opening Outlets
P25 Strategies for Domestic Operations ― Plans for Opening New Outlet①Iseyama Hills

P14 Consolidated Balance Sheets
P15 Interest-bearing Debt and Net Assets
P16 Interest-bearing Debt ― Outlook for Interest-bearing Debt Balance
P17 Consolidated Cash Flows

P27 Strategies for Domestic Operations ― Plans for Opening New Outlet②Omiya – ArtGrace Wedding Chateaux
P28 Strategies for Overseas Operations ― Promotion of the“Region’s No. 1 Facility” Strategy
P29 Strategies for Overseas Operations and Subsidiaries
P30 Corporate Data

2

3

FY12/09 Summary of Consolidated Business Results
ActualMillion yen

FY12/08

YoY change
FY12/09

AmountPct.

31,07332,491+ 1,418+ 4.6%

Domestic operation Net sales

27,931

29,978+ 2,047+ 7.3%

Overseas operation Net sales

3,141

2,513

- 628

- 20.0%Operating profit

6,077

6,269

+ 192

+ 3.2%

Ordinary profit

5,043

6,167

+ 1,124+ 22.3%

Net profit

2,453

3,390

+ 936

+ 38.2%¥ 30,065 .64¥ 41,548 .42+ 38.2%¥ 5,000¥ 5,000-

Net sales

Consolidated EPS
Annual dividend per share

Domestic operations were the key sales driver. Sales and earnings increased YoY and continued to mark a record high.

● Strong performance in Japan. Consolidated net sales hit record high offsetting the decrease in overseas sales.
● While gross profit increased due to higher sales, SG&A expenses rose only slightly. As a result, operating profit hit arecord high.
● Due to the improvement in non-operating income and expenses, ordinary profit increased substantially, whichrose by more than 20%, and also marked a record high.
● Net profit also increased substantially, which rose by more than 30% marking a record high. This was due mainly toincrease in income before income taxes and drop in corporate tax burden ratio resulting from recovery in earnings ofoverseas subsidiaries.

4

Consolidated Business Results
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

32,491

Operating profit

31,073

6,077

6,269

6,167

Ordinary profit

Operating profit
margin28,259Million yen

Ordinary profit
margin3,390

Net profit
Net profit margin

5,043

4,805

2,453

4,534
22,765

19.6%

2,104

19.3%

3,652

3,458

19.0%

17.0%
16.1%

2006

2007

2008

Million yen

2009

16.0%

16.2%

2007

2008

10.4%

1,772

7.9%

7.8%
7.4%

15.2%

2006

2007

FY12/06

2008

2009

2006

FY12/07

2009

2006

FY12/08

2007

2008

2009

FY12/09

Net sales

22,76528,25931,07332,491

Operating profit

3,652

4,805

6,077

6,269

Ordinary profit

3,458

4,534

5,043

6,167

Net profit

1,772

2,104

2,453

3,390

5

Consolidated Gross Profit
Million yen

FY12/08

YoY change

FY12/09

AmountPct.

Consolidated gross profit

11,548

11,978+ 429+ 3.7%

Domestic operation

10,555

11,232+ 676+ 6.4%

Overseas operation

993

746

- 246

- 24.9%FY12/08

FY12/09

YoY change

Consolidated gross profit

37.2%

36.9%

- 0.3pDomestic operation

37.8%

37.5%

- 0.3pOverseas operation

31.6%

29.7%

- 1.9pHigher earnings in Japan increased consolidated gross profit. Drop in both profit and profit margin due to decrease in overseas sales.

【 Domestic operation 】● Gross profit increased YoY due to favorable performance of existing outlets and contribution of new outlets to theearnings in FY12/08 and FY12/09.
● Gross profit margin declined YoY but remains high.

【 Overseas operation 】● Gross profit decreased YoY as a result of decrease in sales.
● Despite the implementation of cost reduction measures, fixed expense ratio increased due to sales decrease. As a result,gross profit margin declined YoY.

6

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

FY12/08

YoY change

FY12/09

AmountPct.

Selling and general administrative
expenses

5,471

5,708

+ 237

+ 4.3%

SG&A expenses margin

17.6%

17.6%

-p

-

Advertising expenses increased but SG&A expense ratio remained the same as FY12/08 due to sales increase.
● Advertising expenses increased along with increase in outlets but SG&A expense ratio remained low resulting in 4.7% YoY.
● Compared with FY12/08, pre-operating expenses increased substantially but SG&A expenses to net sales was 17.6%, the samelevel as FY12/08.

【 Start-up cost】】
Million yen

FY12/08

YoY change

FY12/09

AmountPct.

Start-up cost

191

314

+ 123

+ 64.4%

Pct. of sales

0.6%

1.0%

+ 0.4p-※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 as a result of recording opening expenses for Noseki outlet in Nagoya and pre-operating expenses for Iseyama
outlet in Yokohama this spring.
● With the opening of Noseki outlet in Nagoya in March, recorded pre-operating expenses in January and February,and cost of consumables at the time of opening.
● With the opening of preparatory office in Iseyama, Yokohama, recorded advertising expenses and personnel expenses as
pre-operating expenses.

7

Consolidated Operating Profit, Ordinary Profit and Net Profit
Million yen

FY12/08

YoY change

FY12/09

AmountPct.

Operating profit

6,077

6, 269+ 192+ 3.2%

Operating margin

19.6%

19.3%

- 0.3p-Ordinary profit

5,043

6,167

+ 1,124+ 22.3%

Ordinary profit margin

16.2%

19.0%

+ 2.8p-

Net profit

2,453

3,390

+ 936

+ 38.2%

7.9%

10.4%

+ 2.5p-

Net profit margin

Operating profit increased YoY as a result of higher earnings in Japan and improvement income andexpenses overseas. Improvement in non-operating income and expenses resulted in substantial increases inordinary profit and net profit YoY.
【Operating profit】● In domestic operations, profit increased absorbing the expenses for opening new large outlets. Income and expenses inoverseas operations also improved. Consequently, operating profit hit record hig【Ordinary profit】● Non-operating income and expenses improved primarily because of recording a ¥45 million exchange gain
(exchange loss of ¥688 million YoY) and because of decrease in interests paid associated with interest-bearing debt ofoutlets opened (down ¥26 million YoY). As a result, ordinary profit increased substantially, which rose by more than
20% YoY, marking a record high.

【Net profit】● Recorded a loss associated with the cancellation of the opening of Kyoto-Kamogawa outlet as an extraordinary loss while
recording a compensation for transfer of Tokyo salon as an extraordinary profit. As a result, substantial increase inordinary profit led to a big increase in income before income tax. Moreover, corporate tax burden ratio dropped due torecovery in earnings of overseas subsidiaries. Consequently, net profit increased substantially, which rose by 38% YoY,
marking a record high.

8

Summary of Domestic Operations
Million yen

FY12/08

YoY change

FY12/09

AmountPct.

27,931

29,978+ 2,047+ 7.3%

No. of guest houses at end of period

43

47

+4

-

Of which multi-guest house type

28

34

+6

-

Of which Double-guest house type

10

8

-2

-

Of which Single-guest house type

5

5

-

-

No. of weddings

6,352

6,952

+ 600

+ 9.4%

Operating rate

66.1%

65.5%

- 0.6p-4,233thousand

4,192thousand- 41thousand- 1.0%Net sales

Average revenues per couple ※※※Average revenue per wedding does not include wedding ceremony and reception-related sales and the number of weddings.
※Decrease in the number of double-type compared with FY12/08 is because of changing Aoyama outlet to multi-type and is not because of closing the outlets.

Net sales increased YoY due to the contribution of outlets opened in FY12/08 and FY12/09, in addition to favorable
performance of existing outlets.
● Net sales increased YoY due to the contribution of outlets opened in Akasaka and Odaiba in FY12/08 and Noseki in
Nagoya in FY12/09, in addition to favorable performance of existing outlets.
● Opening of Noseki outlet in Nagoya (3 guest houses) and an additional 1 guest house in Aoyama raised the number ofguest houses from 43 to 47.
● Operating rate continued the high standing at 65.5% despite a 0.6 point decrease YoY.
● Average revenues per customer declined because increase in the number of weddings held at small-group guest houses
pushed the overall average down.

9

Domestic Operations － Order Backlog
FY12/08

7,003

No. of orders

YoY change

FY12/09

Amount

7,737

Pct.

+ 734

+ 10.5%Year-end order backlog
4,448
5,233
+ 785
+ 17.6%
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 YoY.
No. ofweddings

2009 orderbacklog

5,233
5,000

+ 785

2008 orderbacklog

weddings YoY
4,448
Average no.
of ordersreceived/mo
nth in FY09

4,000

645
Average no.
of ordersreceived/mo
nth in FY09

3,000
Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

584

Domestic Operations － Situation of Facilities

Multi-guest
house type
9 facilities,
34 guest
housesAoyama 3

Yokohama 4

Shinuyarasu 5

Osaka 5

Kyoto 3

Sendai 3

Shirogane 2

Chiba 2

Hoshigaoka 2

10Nagoya-Yagoto New Nagoya-Noseki
34

Omiya 4

Double-guest
house type
4 facilities,
8 guesthousesShinsaibashi 2
Facilities with “NewNew ”
opened during FY12/09.
Parentheses show the no. of
guest houses of each facility.

Single-guest
house type
5 facilities,
5 guesthousesRegionNo. of guest
housesNihonbashi 1

Ichigaya 1

Akasaka 1

Odaiba 1

Nagoya-Marunouchi 1

Tokyo

Tokyo area

NagoyaKansaiOther areas

9

15

10

10

3

Total

47

11

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 revenues per couple ※FY12/08

YoY change

FY12/09

AmountPct.

27,2398,493

27,771
8,511

+ 532
+ 18

+ 2.0%+ 0.2%

31.2%

30.6%

- 0.6p

-

1,573

1,604

+ 30

+ 2.0%

5.8%

5.8%

-p

-

6,919

6,907

- 12

- 0.2%

25.4%

24.9%

- 0.5p

-

6,291
66.7%

6,453
67.9%

162
+ 1.2p¥ 4,234thousand¥ 4,185thousand- ¥ 49thousand+ 2.6%- 1.2%※Target facilities: Nihonbashi; Shirogane; Yokohama; Osaka; Sendai; Nagoya-Hoshigaoka,; Shinurayasu ,Omiya,Aoyama,Ichigaya,Shinsaibashi,
Nagoya-Marunouchi ,Kyoto,Nogoya-Yagoto,Chiba (total: 15 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.

Strong orders raised both the number of weddings held and net sales. Increase in the number of weddings held also raised
the operating rate.
● Strong orders increased the number of weddings held resulting in sales increase.
● Gross profit margin and operating margin decreased slightly YoY but remained high.
● Average revenues per customer declined because increase in the number of weddings held at small-group guest houses
pushed the overall average down.

Summary of Overseas Operations

12

FY12/08

YoY change

FY12/09

AmountPct.

3,141million

2,513million- 628million- 20.0%

8

9

+1

2,249

2,278

+ 29

－
+ 1.3%

774

702

- 72

- 9.3%

Alliance sales including travel
agencies

1,095

1,116

+ 21

+ 1.9%

Direct sales in Hawaii/Bali
(DW)

380

460

+ 80

+ 21.1%

Net sales
Year-end Facilities
No. of weddings
Direct sales in Japan※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.

Although Destination Wedding (DW) increased, the number of weddings held through direct sales, and net sales decreased.

● The number of travelers from Japan to Hawaii and Paris decreased significantly impacted by fuel surcharge and new
influenza. Also, abolition of fuel surcharge in 2H and a sharp decline in the travel expenses due to the yen’s appreciation
had a large impact on decrease in sales.
● The number of Destination Weddings (DW) held increased.
● The number of weddings held through alliance sales increased for signing an exclusive use contract with St. Andrew’s
Cathedral.
● Reduced fixed costs such as by cutting expenses including review of rent expenses and merger and abolition of salonsin Japan to restructure revenue base.

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

New House of Iris

Exclusive use

Exclusive use

Exclusive use

Waioli Chapel

St. Mark‘s Episcopal Church※※

New St. Andrew’s Cathedral※ 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

14

A
A ss ss ee tt ss

Liabilities
Liabilities andand netnet assets
assetsIncrease in tangible fixed assets

Interest-bearing debt

Increase in buildings and structures ： Increase in outlet (Noseki, Nagoya) opened in 2009
Increase in tools, furniture and fixtures： Increase in outlet (Noseki, Nagoya) openedin 2009
Increase in construction in progress ： Increase in outlet (Iseyama, Yokohama) slated toopen in 2010

Million yen

Current assets
Cash and deposit
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
Investments and other assets

Investment securities
Lease and guarantee deposits

Deferred assets
Total assets

Dec. 31, ’08 Dec. 31, ’09
7,870
9,536
6,272
7,933
85
72
110
95
431
303
24,54527,985
18,144
20,84917,70918,5502,213
2,460-6,631-8,383
4,421
4,569
430
3,652
370
310
6,030
6,826
479
903
2,387
2,708
11
8
32,42737,530Change

1,665
1,661
-13
-14
-128
3,440
2,705
840
246
-1,751
147
3,222
-60
795
424
321
-2
5,103

*Details are on the next page

Amount of interest-bearing debt ： ¥ 17,071mn (Up ¥1,209million compared to Dec, 31, ’08)

Net assets
Amount of net assets ： ¥12,546mn （up ¥3,055mn compared with FY12/08

Dec. 31, ’08 Dec. 31, ’09
Total liabilities
22,93724,984Current liabilities
8,781
9,511
Accounts payable
1,359
1,484
Short-term debt
300
Current portion of long-term debt
2,350
2,433
Current portion of bonds
436
376
Accrued amount payable
1,720
1,976
Advances received
1,244
1,453
Fixed liabilities
14,155
15,472
Bond
1,266
890
Long-term debt
11,80913,072
Provision for loss on cancellation
261
of lease contract
Net assets
9,490
12,546
Shareholders’ equity
9,738
12,679
Capital/capital surplus
1,106
1,106
Retained earnings
8,631
11,573
Valuation and translation adjustments
-247
-133
Total liabilities and net assets
32,42737,530Million yen

Change

2,047
729
124
300
82
-60
256
209
1,317
-376
1,264
261
3,055
2,941
2,941
114
5,103

15

Interest-bearing Debt and Net Assets【Interest-bearing debt related to existing outlets continued to decline.
Equity ratio improved and financial soundness progressed.】】Year-end interest-bearing debt balance

Net assets and equity ratio

Increased in total YoY but decreased for the outlets opened.
Interest-bearing debt balance of outlets opened declined¥2,127 YoY.
Increase is due to the borrowing of construction funds for
Iseyama outlet in Yokohama.

Net assets exceeded ¥12.5bn and equity ratio exceeded by 33%

Million yen

20,000The ongoing maintenance of high profitability increased net sales
annually to more than ¥12.5bn, up ¥3,.55mn compared with Dec.
31, ’08. Equity ratio also increased significantly to 33.4%.

Million yen
Interest-bearing debt related
to the new outlet in Iseyama,
Yokohama

15,00019,05017,3423,800
15,862

15,562

12,546
12,50010,765

3,728
11,524

17,071

3,800

15,00010,954

16,378

4,952

7,064

10,000

9,490
8,393

15,25010,000

33.4%

32.0%

7,594

13,542

7,500
6,313

12,134

29.3%

5,703

11,426

10,0075,000 4,423

25.1%
26.2%

5,000

Interest-bearing debts of outlets
opened consistently declined
FY6/06

FY12/06

FY6/07

FY12/07

FY6/08 FY12/08

FY6/09FY12/092,500 21.3%
22.3%
FY6/06 FY12/06

22.7%

FY6/07 FY12/07 FY6/08 FY12/08 FY6/09

FY12/09

Interest-bearing Debt Outlook for Interest-bearing Debt Balance

16

The
repayment of interest-bearing debts of outlets opened almost
C Fsupport
開業済店舗分の有利子負債は、4期後にほぼ返済完了
水準の営が財務
全 化 を soundness
後押し
High高operating
CF業
will
the健financial
completedin FY12/13
InterestInterest-bearing debts of outlets opened is expected to be reduced
Debt redemption period: 1.8 years (for outlets opened)
substantially each period
Collect investment fund in less than 2 years even if the
Financial improvement will raise the estimated equity ratio to 40%
operating CF is the same as FY12/09.
on Dec. 31, ’10.
Outlook for the future year-end interest-bearing debt balance as of FY12/09

Estimated total amount of operating CF・Estimated year-end interest-bearing debt balance based on the current debt and redemption
agreements (interest-bearing debt for the new Iseyama outlet in Yokohama excluded)

When the estimated operating CF is on a par (¥6.2bn) with FY12/09

18,600Million yen

17,50017,071

15,862

16,378Interest-bearing debt related to thenew outlet in Iseyama, Yokohama

15,000
3,728

4,952

Interest-bearing debt related
to the construction of Omiya
outlet7,064

12,50012,13410,000Million yen

Al l i n t e r est-be ar ing
debts for outlets opened

10,007

15,000Interest-bearing debt balance ÷ Operating CF

2.7years
Debt redemption period
for outlets opened

11,426

6,200

12,40012,50010,0006,200Interest-bearing debt balance ÷ Operating CF

7,500

7,500

1.8 years

5,000

5,000

2,500

6,200

6,200

12,400FY12/10

FY12/11

FY12/12Interest-bearing debts of outlets opened
FY12/08

FY6/09FY12/09 FY12/10

FY12/11

FY12/12FY12/132,500

Consolidated Cash Flows

17【Free CF increased for 2 consecutive periods due to a big increase in operating CF while investing in new outlets】
Consolidated

cash

FY12/08
Operatingactivities

Million yen

flow

F r e eFY12/09

Investingactivities

Financing
activities

c a s hf l o w

Free cash flow = Operating CF+ Investing CF
Million yen
Endingbalance

4,000

3,333

7,825

8,000
5,389

6,287

6,164

2,000

911

4,000

63

760

0

0

FY12/06

FY12/07
FY12/08

FY12/04

FY12/09-2,000- 2,055-4,000FY12/05-1,990- 3,639-5,375-3,121-4,000-8,000-5,158-6,000Exchange difference of cash and cash
equivalents

- 156

- 10

Changes in cash and cash equivalents

- 461

1,661

Cash and cash equivalents at beginning of
year

6,625

6,164

Cash and cash equivalents at end of year

6,164

7,825

Operating activities
Investing activities
Free cash flow
Financing activities

Operating activities

f a c t o r s

FY12/09
6,287- 5,375911760

M a j o r

FY12/08
5,389- 2,055
3,333- 3,639

Million yen

Income before income taxes
Depreciation
Corporate taxes paid

¥ 6,021million¥ 2,031million- ¥ 2,755million

Investing activities
Payments for acquisition of tangible fixed assets
Payments for lease and guarantee deposits¥ 4,642million¥ 367million

Financing activities
Changes in short-term debt
Changes in long-term debt
Payments for redemption of bonds
Dividends paid

¥ 300million¥1,345million- ¥ 436million- ¥ 448million

18Consolidated Business Forecasts for FY12/10
Million yen

FY12/09 Actual19

FY12/10 Forecast

ChangeAmountPct.

Net sales

32,49135,500+ 3,008+ 9.3%

Operating profit

6,269

6,550

+ 280

+ 4.5%

19.3%

18.5%

- 0.8p

－

6,167

6,300

+ 132

+ 2.1%

19.0%

17.7%

- 1.3p

－

3,390

3,530

+ 139

+ 4.1%

10.4%

10.0%

- 0.4p－¥ 41,548 . 42

¥ 43,259 . 80

+ 4.1%¥ 5,000¥ 5,000-%

Operating margin
Ordinary profit
Ordinary profit margin
Net profit
Net profit margin
EPS
Annual dividend per share

Domestic operations are expected to be the key sales driver leading sales and earnings to increase substantially and marking arecord high.
※ net sales to mark a record high for 15● Domestic operations will continue to be the key sales driver leading consolidated
consecutive periods* since the Company’s establishment※
profit will mark a● Increase in gross profit due to higher sales. SG&A expenses will increase only slightly and operatingrecord high for 15 consecutive periods since the Company’s establishment● Both ordinary profit and net profit will increase significantly YoY due to increase in sales of domestic operations andimprovement in overseas subsidiaries’ performance. In addition, ordinary profit will mark a record high for 15※ for 7 consecutive periods since the Company’s establishment.
consecutive periods* and net profit※ Excluding the fiscal year ended Dec. 2000 which was a 5-month transitional period due to a change in the fiscal year end.

20

Strategies for Domestic Operations － Business forecasts
YoY change

FY12/09
actualFY12/10
forecast

29,978million yen

32,750million yen+ 2,771million

Total guest houses at end of
period

47

53

+6

-

Multi-guest house type

34

40

+6

-

Double-guest house type

8

8

-

-

Single-guest house type

5

5

-

-

6,952

7,750

+ 798

+ 11.5%Net sales

No. of weddings

AmountPct.
yen+ 9.2%

Orders for existing outlets are favorable. Expect higher sales again in FY12/10 due to the effect of opening new outlets.

● Continue to expect increase in sales YoY as the orders for existing outlets are favorable and Noseki outlet in Nagoya
opened in March 2009 will contribute to earnings for the full year.
● Iseyama outlet in Yokohama slated to open in May 2010 will contribute significantly to increase in sales.
● Aim for a further improvement in services and stable operations by equalizing wedding ceremonies and receptions,which concentrate in the peak season (autumn) throughout the year. In FY12/10, which will go through the process ofequalization, a slight decline in the average revenues per customer is expected.
● Plan to open 6 new guest houses (Iseyama). As a result, the number of guest houses at the end of year will increase from47 to 53.
● Rate of progress of orders as of Dec. 31,, ’09 against the estimated number of weddings to be held (7,750 weddings) in
FY12/10 is 66.4% (62.6% in FY12/08).

21

Strategies for Overseas Operations － Business forecasts

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

YoY change

FY12/09
actualFY12/10
forecast

2,513million yen

2,750million yen+ 236million yen+ 9.4%

9

9

-

-

2,278

2,800

+ 522

+ 22.9%AmountPct.

Anticipate increases in both the number of weddings held and net sales due to an alliance with Kuraudia, in addition to
direct sales with favorable orders.
● The negative factor is that travel expenses will decrease due to the yen’s appreciation. Meanwhile, the positive factor isthat the number of travelers will increase.
● The number of outlets decreased due to merger and abolition of salons in Japan in FY12/09. However, orders for direct
sales will be strong due to a decline in fuel surcharge and market recovery resulting from the yen’s appreciation.
Order backlog at the beginning of year will increase YoY.
● Expect a continued increase in the number of Destination Weddings (DW) in FY10/12.
● Expect an increase in the number of weddings held for signing an exclusive use agreement with St. Andrew’s Cathedral.
● Expect an increase in the number of weddings held in Hawaii from April due to the effect of an alliance with Kuraudia.

22

Future Strategies

23

Continue with new business strategies aimed at continuous and steady growth

Strategies for Domestic Operations
1. Region’s No. 1 outlet strategy (open large outlets 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. 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 strengthening financial position towards financial soundness
10. Continue to strengthen the hiring of new graduates and development of human resources
11. Further strengthening of governance functions and compliance including subsidiaries

Strategies for Domestic Operations Strategies for Opening Facilities

24

Open mainly large outlets in the Tokyo area (Tokyo, Kanagawa, Chiba, Saitama), Chukyo region andKansai region.
New outlets slated to open

Mid-term basic policy for openingnew facilities【No. of guest houses by region】

Open mainly new large facilities

End of2009

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

2010

2011

End of
2011

47

+6

+4

57

o

9

-

-

9

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

15

+6

+4

25

areas

3

-

-

3

Kansai (Osaka,K y o t o )

10

-

-

10

N

10

-

-

10

C o r p o r a t e
T

o

k

Other

TokyoKanagawa
Osaka

NagoyaNew facilities to beopened

a

g

y

o

y

a

【No. of guest houses by type】
End of2009

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

47
34
8
5

New facilities to beopened

2010

2011

+6
+6
-

+4
+4
-

End of
2011

57
44
8
5

Strategies for Domestic Operations － Plans for Opening New Outlet ①Iseyama Hills

25

Open a large wedding hall as a new business model in Iseyama, Yokohama this spring. Also aim to become
the region’’s number-one.

Iseyama - Hills
Slated to open in a good location, which is only a 5-minute walk from
Sakuragicho St. in Yokohama, in the spring of 2010
Open as our first outlet with 2 chapels
Also prepared to handle Shinto shrine weddings. Offer 3-style wedding with
2 chapels
One of Japan’s largest wedding centers, featuring 6 guest houses withdifferent 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 be used
for an authentic shrine weddingStrategies for Domestic Operations － Plans for Opening New Outlet ①Iseyama Hills
One of Japan’’s largest wedding centers that meet the needs of customers, featuring 6 guest houses withdifferent design motifs

Oxford Garden

Venetian Gran

Bamboo Court

Diversified guest houses with various types and concepts

Blanche, Paris

Oriental, New York

Gramercy Sweet

26

27

Strategies for Domestic Operations ― Plans for Opening New Outlet ②Omiya – ArtGrace Wedding Chateaux
Further expand Omiya outlet, which is performing well, in the spring of 2011, aiming for the region’s
No.1 outlet in Saitama.
To open in spring 2011
Omiya- ArtGrace WEDDINGCHATEAUX
Opened in March 2006 4 Guesthouse TypeOne of the most appealing wedding halls
in Saitama with high profitability＋ adjacent to the existing facility 4 more guest houses
Aim for the region’s overwhelming No.1 outlet by responding todiverse wedding needs (Japanese weddings, etc.) and enhancing
ancillary facilities

The addition will have an authentic Japanese garden※The pictures are renderings

One of Japan’s largest churches
Four guest houses, each with a different
design motif and capacity
Able to attract many guests and maintaina high utilization rate

Even more amenities, including an authentic Japanese garden
and a large lobby
Two guest houses specifically for Japanese-style weddings
Resort-style ceremonies are also possible,
including at a penthouse that appears to float on water.
Larger size of this location is expected
to raise operating efficiency and profitability.

Strategies for Overseas Operations ― Promotion of the “Region’s No. 1 Facility” Strategy

28

Aim for the Region’’s No. 1 facility by responding to various wedding styles while offering weddingreceptionsof 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

British style

Ocean view church

Church surroundedby forest

Church surroundedby water

An authentic temple

Western style wedding

Bali style

Oriental style

Diversified guest houses which differ in type and concept

French style

Italian style

American style

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

Japanese style29

Strategies for Overseas Operations and Subsidiaries
Use business alliances and cut fixed expenses to strengthen operations while preparing for new initiatives.
Resume growth once the market starts to recover.
Strategic business alliance with Kuraudia Co., Ltd.

Continue working on Destination Weddings (DW)

Outsource the wholesale of Hawaii chapels for which Best
Bridal owns or has exclusive use rights exclusively for Kuraudia.

We continue to aggressively promote DWs by using directly
produced weddings to reinforce the Best Bridal brand andreputation for quality.

Strategic significance of the Company’s partnershipwith Kuraudia● Higher operating rate of facilities (chapels) in Hawaii● Stable earnings by receiving steady income● Reinforce direct operating structure to separate wedding activities
from the operations of travel companies, where prices are falling
rapidly(Destination weddings) couples
FY12/05

FY12/06

FY12/07

FY12/08

FY12/09

5

144

338

380

460

Aimingfor more
growthAcqua Grazie, Inc.: Opened as a flagship store within Aoyama Belle Commons to further strengthen profitability.

Opened a flagship store with large selection of products in Aoyama, the center of fashion
Aoyama Flagship Store, Acqua Grazie

Opened on 3F of Belle Commons

Further strengthen Acqua Grazie, which operates a highly
profitable business, centering on wedding dress rental.
Merge and enlarge the main store in Aoyama and Aoyama
Nord store, and further strengthen product lineup to aim to
attract customers and secure high earnings

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: 928 Non-consolidated: 369

Shares issued

81,600 shares No trading unit

Shareholders995

A c t i v i t i e s

1. Planning, design, operations, management and consulting of hotels, restaurants,
wedding halls and related facilities in Japan and overseas
2. Planning, operations, implementations, mediation and introduction of banquets and parties
3. Travel agency business based on the Travel Law
4. Other related businesses

Consolidated
subsidiaries

Equity-method
a f f i l i a t eBest Planning Inc.
Acqua Grazie, 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, 2009

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, 2009. 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: Public Relations & Investor Relations, BEST BRIDAL Inc
Tel：：03-5464-0081 e-mail ：ir – sec @ bestbridal . co . jp