TSE Mothers, CODE 24180

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

Best Bridal Inc
Results of Operations for the first half offiscal year ended December 31, 2009

August 21,2009

Contents

1

1.1.FY12/09
FY12/09FirstFirstHalf
HalfConsolidated
ConsolidatedFinancial
FinancialSummary
Summary

2.2.BusinessBusinessForecasts
Forecastsfor
forFY12/09
FY12/09

P3 FY12/09 First Half Summary of Consolidated Business Results

P19 Consolidated Business Forecasts for FY12/09

P4 Consolidated Business Results

P20 Strategies for Domestic Operations ― Plan for FY12/09

P5 Consolidated Gross Profit

P21 Strategies for Domestic Operations

P6 SG&A Expenses and Pre-operating Expenses
P7 Consolidated Operating Profit, Ordinary Profit and Net Profit―Number of Weddings Held and Order Situation
P22 Strategies for Overseas Operations ― Plan for FY12/09

P8 Summary of Domestic Operations
P9 Domestic Operations ― Opening of New Outlets

3.3.Future
FutureStrategies
Strategies

P10 Domestic Operations ― Situations of Outlets by Type and Region
P11 Domestic Operations ― Existing Outlets
P12 Domestic Operations ― Order Backlog
P13 Summary of Overseas Operations
P14 Overseas Operations ― Outlets

P15 Consolidated Balance Sheets

P24 Future Strategies
P25 Strategies for Domestic Operations―Strategies for Opening Outlets
P26 Strategies for Domestic Operations― Plans for New Outlet Openings ①
P27 Strategies for Domestic Operations― Plans for New Outlet Openings ②
P28 Strategies for Domestic Operations― Target a Broad Range of Needs for Wedding Ceremonies
P29 Strategies for Overseas Operations

P16 Interest-bearing Debt and Net Assets
P17 Interest-bearing Debt Outlook for Interest-bearing Debt Balance

P30 Corporate Data

2

FY12/09 First Half Summary of Consolidated Business Results
Million yen

ActualFY12/08 First Half

3

YoY change

FY12/09 First Half

AmountPct.

14,312

15,021+ 709+ 5.0%

Domestic operation Net sales

12,776

13,812+ 1,036+ 8.1%

Overseas operation Net sales

1,535

1,208

- 326

- 21.3%Operating profit

2,410

2,484

+ 74

+ 3.1%

Ordinary profit

2,075

2,497

+ 421

+ 20.3%

Net profit

1,047

1,402

+ 355

+ 33.9%¥ 2,000¥ 2,500+ ¥ 500

Net sales

Annual dividend per share

Domestic operations were the key sales driver. Sales and earnings increased YoY and continued to marka 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 record 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.
● No major extraordinary gains or losses incurred. Net profit also increased substantially, which rose by morethan 30%, marking a record high.
● Paid an interim dividend of ¥2,500 per share, an increase of ¥500 compared with the same period a year earlier.

Consolidated Business Results
N e t

s a l e sMillion yen

15,021
14,312

4

OperatingprofitMillion yen
Operating profit

2,410

2,484

Operating margin

Ordinary

profitMillion yen

2,497

Ordinary profit

N e t

p r o f i t

Million yen

1,402

Net profit
Net profit margin

Ordinary profit
margin
2,075

1,047

12,233
1 6 .8 %1 6 .6 %

16.5%

9.3%

1,386
1,345

9,568

14.5%

637
1,039
934
10.9%

1 1 .3 %480
1 1 .0 %

9.8%

2006
2Q

2007
2Q

2008
2Q

Million yen

2009
2Q

2006
2Q

2007
2Q

FY12/06 First Half

7.3%

2008
2Q

2009
2Q

2006
2Q

FY12/07 First Half

2007
2Q

2008
2Q

2009
2Q

5.0%

5.2%

2006
2Q

2007
2Q

FY12/08 First Half

2008
2Q

2009
2Q

FY12/09 First Half

Net sales

9,568

12,233

14,312

15,021

Operating profit

1,039

1,386

2,410

2,484

Ordinary profit

934

1,345

2,075

2,497

Net profit

480

637

1,047

1,402

Consolidated Gross Profit
Million yen

5

FY12/08 First Half

FY12/09 First Half

YoY change
AmountPct.

Consolidated gross profit

5,109

5,247

+ 138

+ 2.7%

Gross profit (Japan)

4,639

4,879

+ 240

+ 5.2%

Gross profit (Overseas)

469

367

- 101

- 21.6%

FY12/08 First Half

FY12/09 First Half

YoY change

Consolidated gross profit margin

35.7%

34.9%

- 0.8pGross profit margin(Japan)

36.3%

35.3%

- 1.0pGross profit margin(Overseas)

30.6%

30.4%

- 0.1pHigh earnings in Japan increased consolidated gross profit. Maintained profit margins overseas but earnings
decreased due to drop in sales.

【 Domestic operations】● Gross profit increased YoY due to favorable performance of existing outlets and contribution of new outlets tothe earnings in the previous fiscal year.
● Gross profit margin declined YoY but still maintains a high level.

【 Overseas operations】● Gross profit decreased YoY as a result of decrease in overseas sales.
● Gross profit declined YoY. However, profit margin remained at the same level due to the implementation of cost
reduction measures.

SG&A Expenses and Pre-operating Expenses

6

Selling and general administrative
Million yen

Selling and generaladministrative expenses
SG&A expenses margin

FY12/08 First Half

FY12/09 First Half

YoY change
Amount

Pct.

2,698

2,762

+ 63

+ 2.4%

18.9%

18.4%

- 0.5p-

While advertising expenses only increased slightly YoY, increase in net sales lowered SG&A expenses margin.
● Advertising expenses increased only slightly due to increase in outlets but SG&A expenses margin dropped to 4.8%,
down 0.1 point YoY as a result of higher sales.
● There are no substantial increase in other SG&A expenses. Consequently, SG&A expenses to net sales dropped to
18.4%, down 0.5 point YoY.

Pre-operating Expenses
Million yen

Pre-operating expenses
Pct. of sales

FY12/08 First Half

FY12/09 First Half

YoY change
Amount

Pct.

77

203

+ 126

+ 161.9%

0.5%

1.4%

+ 0.8p-*Rents and personnel expenses which have accrued by the opening of new outlets are included in the SG&A expenses as pre-operating expenses.
*Includes the cost of consumption (cost of sales) in the first month after opening.

Increased as a result of recording opening expenses for opening Noseki outlet in Nagoya and pre-operating
expenses for Iseyama outlet in Yokohama in FY 2010.
● With the opening of Noseki outlet in Nagoya in March, recorded pre-operating expenses in January and February andcost of consumables at the time of opening.
● With the opening of preparatory office in Iseyama, Yokohama, recorded personnel and rent expenses as pre-operating
expenses.

Consolidated Operating Profit, Ordinary Profit and Net Profit
Million yen

FY12/08 First Half

FY12/09 First Half

7

YoY change
AmountPct.

Operating profit

2,410

2,484

+ 74

+ 3.1%

Operating margin

16.8%

16.5%

- 0.3p-Ordinary profit

2,075

2,497

+ 421

+ 20.3%

Ordinary profit margin

14.5%

16.6%

+ 2.1p-

Net profit

1,047

1,402

+ 355

+ 33.9%

7.3%

9.3%

+ 2.0p-

Net profit margin

Operating profit increased YoY as a result of higher earnings in Japan and improvement in 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 high.

【Ordinary profit】● Non-operating income and expenses improved primarily because of recording (exchange loss of ¥220mn in the same
period a year earlier) a ¥47mn exchange gain and because of decrease (down ¥22mn YoY) in interests paid associatedwith decrease in interest-bearing debt of existing outlets. As a result, ordinary profit increased substantially, whichrose by more than 20% YoY, marking a record high.

【Net profit】● No major extraordinary gains or losses were incurred and income before income taxes increased. In addition, theeffective rate on a consolidated basis declined resulting from improvement in overseas subsidiaries’ earnings.
Consequently, net profit increased, which rose by more than 30% YoY, the highest ever.

Summary of Domestic Operations
Million yen

8

FY12/08 First Half

YoY change

FY12/09 First Half

AmountPct.

12,776

13,812+ 1,036+ 8.1%

No. of guest houses at end of
period

42

46

+4

-

Of which multi-guest house type

28

31

+3

-

Of which Double-guest house type

10

10

-

-

Of which Single-guest house type

4

5

+1

-

No. of weddings

2,875

3,200

+ 325

+ 11.3%Operating rate

59.9%

62.1%

+ 2.1p-¥ 4,268thousand¥ 4,208thousand- ¥ 59thousand- 1.4%Net sales

Average revenues per couple ※*Average revenue per wedding does not include wedding ceremony and reception-related sales and the number of weddings.

Net sales increased YoY due to the contribution of outlets opened in FY12/08, in addition to favorable
performance of existing outlets.
● Net sales increased YoY due to the contribution of outlets opened in Akasaka and Odaiba in the previous fiscal
year to the earnings, in addition to favorable performance of existing outlets.
● Opening of Noseki outlet in Nagoya in March raised the total number of guest houses to 46.
● As a result of the favorable performance of existing outlets, operating rate improved to 62.1%, up 2.1 points
YoY.
● Average revenues per customer declined because increase in the number of weddings held at small-group guest
houses pushed the overall average down.

Strategies for Domestic Operations New Outlets

9【Open “St. Grace Cathedral””, a large outlet aiming for the region’’s No. 1 outlet in Nagoya in March.】】
An authentic Gothic-style cathedral
An independentauthentic cathedral
based on Gothic-stylethat can hold amaximum of
136 people.

3 guest houses with a garden surrounded by blue sky,water and greenery“Bamboo Court” that
resembles a luxurious
resort hotel in Asia

Cathedral’s sacredspace overlapping the“Casa Dolce” full oflacy ceiling thatromantic and cuteresembles the bride’s

a t m o s p h e r e

veil

Colorful antique“Vi l la Pr i mavera”

stained glasswith a relaxed

windows acquired
from a church in
Englandat mosphere like aluxurious hotel

Domestic Operations Situation of Outlets by Type10

Multi-guest
house type
8 facilities,
31 guest
housesYokohama (4)Shinuyarasu 5

Omiya 4

Osaka 5

Kyoto 3

Sendai 3

Shirogane 2

Aoyama 2

Chiba 2

New Nagoya Noseki 3

Yagoto 4

Double-guest
house type
5 facilities,
10 guest
housesHoshigaoka 2

Shinsaibashi 2

Single-guest
house type
5 facilities,
5guesthousesRegionNo. of guest
housesFacilities with “New”
New”
opened in FY12/08.
Parenthesis shows the no.
of guest houses of eachfacility.

Nihonbashi 1

Ichigaya 1

Akasaka 1

Odaiba 1

Nagoya-Marunouchi 1

Tokyo

Tokyo area

NagoyaKansaiOther areas

8

15

10

10

3

Total

46

Domestic Operations Existing Outlets
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 ※11

FY12/08 First Half

FY12/09 First Half

YoY change
AmountPct.

12,502
3,720

13,140
3,945

+ 637
+ 225

+ 5.1%+ 6.0%

29.8%

30.0%

+ 0.3p

-

778

774

-4

- 0.6%

6.2%

5.9%- 0.3p

-

2,941

3,171

+ 230

+ 7.8%

23.5%

24.1%

+ 0.6p

-

2,865
60.2%

3,046
65.2%

181
+ 4.9p¥4,267thousand¥ 4,206thousand- ¥61thousand+ 6.3%- 1.4%*Target facilities: Nihonbashi; Shirogane; Yokohama; Osaka; Sendai; Nagoya-Hoshigaoka,; Shinurayasu ,Omiya,Aoyama,Ichigaya,Shinsaibashi,Nagoya-Marunouchi,Kyoto,Nagoya
Yagoto,Chiba(total: 15 facilities)
To assure comparability, YoY changes are calculated based on existing outlets in operation for a full year.
*Average revenue per wedding does not include wedding ceremony and reception-related sales and the number of weddings.

Favorable performance of existing outlets increased the number of weddings held and net sales. Increase in
the number of weddings raised operating rate as well as profit margins.
● Due to favorable orders, sales rose by more than 5% YoY.
● Rise in operating rate associated with increase in the number of weddings held raised both gross profit marginand operating margin, exceeding net sales.
● Average revenues per customer declined because increase in the number of weddings held at small-group guest
houses pushed the overall average down.

12

Domestic Operations Order Backlog
FY12/08 First Half

FY12/09 First Half

YoY change
AmountPct.

No. of orders

3,689

4,118

+ 429

+ 11.6%Year-end order backlog

4,611

5,366

+ 755

+ 16.4%Due to continuation of good order situation, both the number of orders received
during the periodand order backlog at the end of the period increased YoY.
No. of weddings

5,3662009 orderbacklog

5,000
2008 orderbacklog

4,611

755
weddings
YoY
Average no.
orders received/month in FY 2009

4,000

686 weddings
Average no. of
o r d e r s
received/monthin FY 2008

3,000

615 weddings

2,000
Jan.

Feb.

Mar.

Apr.

May

Jun.

Summary of Overseas Operations

13

FY12/08 First Half

YoY change

FY12/09 First Half

AmountPct.

¥1,535 million¥1,208 million- 326 million- 21.3%

9

9

1,197

1,115

－
- 82

－
- 6.9%

Direct sales in Japan

381

324

- 57

- 15.0%Alliance sales including
travel agencies

632

596

- 36

- 5.7%

Direct sales in Hawaii/Bali
(DW)

184

195

+ 11

+ 6.0%Net sales
Year-end Facilities
No. of weddings*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 Weddings (DW) increased, the number of weddings held through direct sales andalliance sales and net sales decreased.
● The number of travelers from Japan to Hawaii and Paris decreased significantly impacted by fuel surcharge andnew influenza. Consequently, net sales decreased.
● The number of Destination Weddings (DW) held increased.
● Reduced fixed costs such as by cutting costs including review of rent expenses and merger and abolition ofsalons in Japan to strengthen our financial position.

Overseas Operations Outlets

14【Opened 7 outlets in Hawaii and 2 outlets 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*Opened House of Iris in February 2009.
Exclusive use contract with St. Andres’s Cathedral started in January 2009.

2 directly operated outlets in Bali

Tirtha Uluwatu

Tirtha Luhur Uluwatu

Consolidated Balance Sheets

15

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
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

Investments and other assets

Deposit
Deferred assets
Total assets

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

FY6/09

7,392
5,864
471
97
385
26,22919,31018,4242,419
16-7,546
4,566
1,429
360
6,558
2,584
9
33,632

Change

-478
-408
-70
-25
111
1,684
1,166
714
259
-36
-915
144
999
-10
527
197
-1
1,204

*Details are on the next page

Amount of interest-bearing debt ： ¥ 16,378mn (Up ¥515million compared to Dec, 31, ’08)

Net assets
Amount of net assets ： ¥10,765mn （up ¥1,275mn compared with FY12/08

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

Current portion of bonds
Accrued amount payable/Accrued expense

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

FY12/08

22,937
8,781
1,359
2,350
436
948
1,244
14,155
1,266
11,809
612
9,490
9,738
1,106
8,631
-247
32,427

FY6/0922,866
8,321
1,288
300
2,297
386
947
1,647
14,544
1,098
12,296615
10,765
10,896
1,106
9,789
-130
33,632

Change

-71
-460
-71
300
-53
-50
0
403
389
-168
487
2
1,275
1,158
1,158
117
1,204

16

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

Slightly increased compared with FY12/08 but decreased
for existing outlets

Net assets exceeded ¥10mn and equity ratio improved to 32%

Interest-bearing debt related to existing outlets declined ¥708mn

The ongoing maintenance of high profitability increased net assets

YoY. Increase is due to the borrowing of construction funds forannually to more than ¥10bn, up ¥1,275mn compared with Dec. 31.

Iseyama outlet in Yokohama.

‘08. Equity ratio also increased significantly to 32%.
Million yen

Million yen

20,000Interest-bearing debt related
to the new outlet in Iseyama,
Yokohama

10,00019,0503,800

15,56232.0%
15,862

8,393

16,378
7,594
4,952

6,313
5,703

11,52410,0005,000

15,25013,542

29.3%

7,500

3,728
10,954

9,490

17,3423,800

15,00010,765

4,423

26.2%

25.1%

12,134
11,426
2,500

5,000

22.3%

22.7%

FY6/07

FY12/0721.3%

Interest-bearing debts related to existing outlets
FY6/06

FY12/06

FY6/07

FY12/07

FY6/08 FY12/08

FY6/09FY6/06

FY12/06

FY6/08 FY12/08

FY6/09

17Interest-bearing Debt Outlook for Interest-bearing Debt Balance
The repayment of existing outlets’ interest-bearing debt
almost completed in FY12/14

High operating CF will support the financial
soundness

Existing Outlets’Outlets’ interestinterest-bearing debts are expected to be reduced
substantially each period

Debt redemption period: 2.2 years (for existing outlets)

Financial improvement will raise the estimated equity ratio to 34%
on Dec. 31, ‘09
Outlook for the interest-bearing debt balance as of Jun. 30, ’09
and balance at the end of year

Collect investment fund in 2 years or so even if the estimatedoperating CF is the same as the previous fiscal year.
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)*The below chart does not include renovation costs and other additional debts for the future
existing outlets.

When the estimated operating CF is on a par (¥5.3bn) with FY12/08

17,071Million yen

15,862Million yen

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

16,378Debt redemption periodf o r e x i s t i n g o u tlets

15,000

3,728

4,952

7,064

Interest-bearing debt balance ÷ Operating CF

12,50015,90015,0005,300

2.2 years
10,60012,134
11,426

10,00012,50010,00010,007
7,500

5,300

7,500

5,000

5,000

2,500

5,300

5,300

10,600FY12/09

FY12/10

FY12/11

Interest-bearing debts related to existing outlets
FY12/08

FY6/09FY12/09 FY12/10

FY12/11 FY12/12

FY12/13

FY12/14

2,500

18

Consolidated Business Forecasts for FY12/09
Million yen

FY12/08 Actual19

FY12/09 Forecast

ChangeAmountPct.

Net sales

31,07332,800+ 1,726+ 5.6%

Operating profit

6,077

6,200

+ 122

+ 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¥ 39,215. 69+ 30.4%¥ 5,000¥ 5,000

ｰ%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 a record high.
● Domestic operations will continue to be the key sales driver leading consolidated net sales to mark a record highfor the 14 consecutive period* since the Company’s establishment.
● Increase in gross profit due to higher sales. SG&A expenses will increase only slightly and operating profit will
mark a record high for the 14 consecutive period* since the Company’s establishment.
● Both ordinary profit and net profit will increase significantly YoY due to improvement in non-operating income
and expenses and overseas subsidiaries’ performance. In addition, ordinary profit will mark a record high for the 14
consecutive period* and net profit for the 6 consecutive period since the Company’s establishment.
*Excluding the fiscal year ended Dec. 2000 which was a 5-month transitional period due to a change in the fiscal year end.

Strategies for Domestic Operations

20

Plan for FY12/09

FY12/08 Actual

FY12/09 Forecast

ChangeAmountPct.

¥ 27,931million¥ 29,900million+ 1,968million+ 7.0%

Total guest houses at end of
period

43

47

+4

-

Multi-guest house type

28

34

+6

-

Double-guest house type

10

8

-2

-

Single-guest house type

5

5

-

-

6,352

7,000

+ 648

+ 10.2%

Net sales

No. 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.

Orders for existing outlets are favorable. Expect higher sales again in the current fiscal year due to the effectof opening new outlets.
● Orders for existing outlets are favorable. Expect sales to rise by almost ¥2bn YoY.
● Noseki outlet in Nagoya opened in March 2009 will also contribute to sales increase.
● Aoyama outlet will expand its ancillary facilities to change it into multi-type (3 guest houses) from the current doubletype (2 guest houses) in October.
● Average revenues per customer slightly declined YoY because increase in the number of weddings held at small-group
guest houses pushed the overall average down.
● There are 4 new guest houses (Noseki: 3, Aoyama: 1 to be additionally operated) slated to open that pre-operating
expenses will increase YoY.

Strategies for Domestic Operations Number of Weddings Held and Order Situation

21【Substantial increase in the estimated number of weddings in FY12/09.
Orders are increasing steadily that the orders for the current period are almost accomplished.】】
Achievement
rate

Number of weddings held for the full year

No. of weddings held + Order backlog(weddings for FY12/09)

No. of weddings held for the full year

7,000
7,000

6,352

FY12/01 ⇒ FY12/09(est.)

88.5
.5

6,000

times

5,601

Estimated no. of weddings
held for the full year
Achievement rate at theend of 1st half

77,000
,000
995.6
5.6 ％

5,000

4,451
4,000

3,057

3,185

3,000

2,268
2,000

1,165
1,000

0

824

FY12/01 FY12/02 FY12/03 FY12/04 FY12/05 FY12/06 FY12/07 FY12/08 FY12/09(est.)

Order backlog

Weddings held

49.9 %

45.7 %

Strategies for Overseas Operations Plan for FY12/09

22

ChangeFY12/08 Actual

FY12/09 Forecast
AmountNet sales
Year-end Facilities
No. of weddings

Pct.

¥ 3,141million¥ 2,900million- ¥ 241million- 7.7%

8

9

+1

-

1,750

- 499

- 22.2%

2,249※*The number 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 as well as
the above number of weddings held.

Number of weddings held and net sales will decrease YoY but the market environment will slightly recoverin 2H. Anticipate continued increases in the number of DWs held and net sales YoY.
● Market environment will slightly recover due to the decline in fuel surcharge and new influenza andappreciation of the yen. Orders from May onwards are favorable but the effect on the operating results for thecurrent fiscal year is insignificant.
● Number of weddings held and net sales are expected to decline owing to price falling associated withintensifying competition.
● Continue to take an active approach towards Destination Weddings (DW).
Expect increases in the number of weddings held and net sales.

23

Future Strategies

24

Continue with new business strategies aimed at continuous and st eady 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 Outlets

25

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

New outlets slated to open (current plan only)

Open mainly new large outlets【 No. of guest houses by region】
2008

Concentrate outlet openings in regionswith large market size
No. 1 outlet strategy in regions
where outlets are locatedCorporateTokyo

No. of new facilities

2010

2009

2010

43
8

+4
+1

+6
-

53
9

15
3

-

+6
-

21
3

10
7

+3

-

10
10

Tokyo area
(Kanagawa.Chiba.Sa
itama)

Other areas
Kansai(Osaka.Kyo
to)NagoyaTokyo Kana
gawa
Sai Chiba
Osaka Nagoya tama【No. of guest houses by type】
2008
Corporate
Of which multiguest house
Of which Doubleguest house
Of which singleguest house

43
28
10
5

No. of new facilities

2009

2010

+4
+6
※ -2
-

+6
+6
-

2010

53
40
※ 8
5

*Decrease in the number of double-type compared with FY12/08 is because ofchanging Aoyama outlet to multi-type and is not because of closing the outlets

Strategies for Domestic Operations Plans for New Outlet ①

26

Large wedding hall to open in Iseyama, Yokohama in the spring of 2010
Part of strategies to become number-one in each region and launch a new business model
Iseyama Wedding Hills Yokohama (tentative name)
Iseyama - Weddinghills Yokohama
To open in spring 2010 6 Guesthouse TypeThe Church of the Waters has a resort-like atmosphere and twochapels underneath a towering spire and bathed in lightfrom stained glass windows.
An authentic church
Church of the Waters

Neighboring Iseyama Jingu can be used for an authentic
shrine wedding.
Best Bridal’s largest wedding hall, located only a fiveminute walk from Sakuragicho Station in Yokohama

Our first location with two chapels
Also prepared to handle Shinto shrine
weddings
One of Japan’s largest wedding centers,featuring six guest houses with different
design motifs

Iseyama Wedding Hills has six guest houses, each with a different
design motif, to meet a broad range of preferences. Couples can holdan unforgettable guest house wedding on a garden terrace surroundedby greenery and sunlight.

Strategies for Domestic Operations Plans for New Outlet ②

27

Expansion of the Omiya wedding chateau, which is performing very well, will be completed in
the spring of 2011, reinforcing Best Bridal’s dominant position in Saitama prefecture.
To open in spring 2011
Omiya- ArtGrace WEDDINGCHATEAUX
Opened in March 2006 4 Guesthouse Type＋ adjacent to the existing facility 4 more guest houses
Current facility is highly profitable as oneof the most appealing places to hold awedding in Saitama prefecture.

Ability to meet even more diverse needs along with the additionof more and better amenities will reinforce Best Bridal’s
overwhelming No.1 position in this region.

The addition will have an authentic Japanese garden※The photograph is a development image.

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 Domestic Operations

28

Promotion of the “Region’s No. 1 outlet” strategy

Aim for the Region’s No. 1 outlet by responding to various wedding styles while offering
wedding receptions of diverse concepts.
Aim for overwhelming No. 1 outlets in regions where outlets 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

Shinto-style wedding

Diversified guest houses which differ in type and concept

French style

Italian style

American style

Bali style

Oriental style

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

Japanese style29
29

Strategies for Overseas Operations
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

Outsource the wholesale of Hawaii chapels for which Best Bridal
owns or has exclusive use rights exclusively to Kuraudia co., Ltd.
Strategic significance of the Company's partnership with
Kuraudia Co.,Ltd.

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

● Higher operating rate of facilities (chapels) in Hawaii(Destination weddings)● Improve financial soundness by receiving steady leasing income● Reinforce direct operating structure to separate wedding activities from the operationsof travel companies, where prices are falling rapidly

2005

2006

2007

2008

5

144

338

380

Aiming formo re growthOffer ceremonies in Hawaii that target a diverse array of customer needs
Best Bridal has exclusive rights at St. Andrew’s Cathedral in Honolulu, Hawaii’s
most popular location for weddings.
We expect St. Andrew’’s to start contributing to earnings after the transitional
fiscal period ending in March 2010.

We have started offering weddings at houses, too.
Taking many actions to meet a diverse range ofcustomer needs

THE HOUSE OF IRIS
2009.02 OPEN

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: 969 Non-consolidated: 374

Shares issued

81,600 shares No trading unit

Shareholders

911

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)

Marizin Inc*As of June 30, 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 to purchase securities issued by the Company. Except where noted otherwise, all financial
and corporate data are as of June 30, 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 no guarantees that thesestatements 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.
ₙ +81-3-5464-0081 e-mail ir@bestbridal.co.jp