TSE Mothers, CODE 24180

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

Best Bridal Inc
Results of Operations for theSecond Quarter Ended June 30, 2010

August 06,2010

Contents

1

1.1.FY12/10
FY12/102Q
2QConsolidated
ConsolidatedFinancial
FinancialSummary
Summary

2.2.BusinessBusinessForecasts
Forecastsfor
forFY12/10
FY12/10P3 FY12/10 2Q Summary of Consolidated Business Results

P18 Consolidated Business Forecasts for FY12/10

P4 Comparison of Initial Forecast(Comparison between Forecast and Actual Results)

P19 Consolidated Business Results

P5 Consolidated Gross Profit

P20 Domestic Operations – Business Forecasts

P6 SG&A expenses and Pre-operating Expenses

P21 Domestic Operations – Number of Weddings Heldand Achievement Rate

P7 Consolidated Operating Profit, Ordinary Profit and Net Profit

P22 Overseas Operations – Business Forecasts

P8 Summary of Domestic Operations
P9 Domestic Operations – Existing Outlets (non-consolidated basis)

3.3.Future
FutureStrategies
Strategies

P10 Domestic Operations – New Outlet Iseyama Hills

P24 Future Strategies

P12 Domestic Operations – Operation of Outlets

P25 Strategies for Domestic Operations

P13 Summary of Overseas Operations
P14 Overseas Operations – Facilities– Promotion of the “Region’s No.1 Outlet” Strategy
P26 Strategies for Domestic Operations – Strategies for Opening Outlets
P27 Strategies for Domestic Operations – Plans for Opening New Outlet

P15 Consolidated Balance Sheets
P16 Interest-bearing Debt Balanceand Shareholders’ Equity and Equity Ratio

Omiya ArtGrace Wedding Chateaux
P28 Strategies for Domestic Operations– Development of Business Portfolio
P29 Strategies for Overseas Operations and Subsidiary
P30 Corporate Data

2

3

FY12/10 2Q Summary of Consolidated Business Results
ActualMillion yen

FY12/09 2Q

YoY change
FY12/10 2Q

AmountPct.

15,021

17,186+ 2,165+ 14.4%

Domestic operation Net sales

13,812

15,811+ 1,998+ 14.5%

Overseas operation Net sales

1,208

1,375

+ 167

+ 13.8%Operating profit

2,484

2,696

+ 211

+ 8.5%

Ordinary profit

2,497

2,540

+ 43

+ 1.8%Net profit

1,402

1,367

- 34

- 2.5%¥ 2,500¥ 2,500-

Net sales

Annual dividend per share

Both domestic and overseas sales increased reaching record high. Operating and ordinary profits also reached record high due tohigher sales.

● For domestic operations, Noseki outlet opened in Nagoya in FY12/09 and Iseyama outlet opened in Yokohama in
FY12/10, as well as favorable existing outlets contributed to increase in sales.
● Sales of overseas operations increased YoY due to increase in the number of weddings held.
● Increase in gross profit due to higher sales absorbed increase in SG&A expenses. As a result, operating profit continued
to mark a record high.
● Recorded an exchange loss but increase in operating profit also raised ordinary profit YoY and continued to mark arecord high.
● Slight decrease in net profit YoY as a result of increase in tax expense.

Comparison of Initial Forecast (Comparison between Forecast and Actual Results)
FY12/10 2Q

単位：百万円Initial plans

vs.PlanActualIncrease

Achievement rate

16,00017,186+ 1,186

107.4%

Domestic operation Net sales

14,685

15,811+ 1,126

107.7%

Overseas operation Net sales

1,315

1,375

+ 60

104.6%

Operating profit

2,240

2,696

+ 456

120.4%

Ordinary profit

2,110

2,540

+ 430

120.4%Net profit

1,170

1,367

+ 197

116.8%Net sales

Domestic and overseas operations did well and net sales and profits far exceeded the initial plans.
● Average revenues per customer in domestic operations significantly improved compared with the initial plan.
● Big increase in the number of weddings held at the Iseyama outlet opened in Yokohama compared with the initial plan.
● Net sales and gross profit increased substantially compared with initial plans due mainly to the above two factors.
● Gross profit exceeded the initial plan. Meanwhile, SG&A expenses was generally in line with the plan and operating
profit, ordinary profit and net profit far exceeded the initial plans.

4

5

Consolidated Gross Profit
Million yen

FY12/09 2Q

YoY change

FY12/10 2Q

AmountPct.

Consolidated gross profit

5,247

6,045

+ 797

+ 15.2%Gross profit (Japan)

4,879

5,697

+ 818

+ 16.8%Gross profit (Overseas)

367

347

- 20

- 5.5%

FY12/09 2Q

FY12/10 2Q

YoY change

Consolidated gross profit margin

34.9%

35.2%

+ 0.3pGross profit margin(Japan)

35.3%

36.0%

+ 0.7pGross profit margin(Overseas)

30.4%

25.3%

- 5.1pIncrease in earnings in Japan raised consolidated gross profit. Despite increase in overseas sales, earnings decreased due to lower
profit margin.

【 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 on earnings.
● Gross profit margin improved YoY due to rise in average revenues per couple and other factors.

【 Overseas operations 】● Sales increased YoY. However, because sales composition of low profit margin travel business increased compared withwedding business, gross profit and gross profit margin declined YoY.

6

SG&A expenses and Pre-operating Expenses【 Selling and general administrative 】
Million yen

Selling and generaladministrative expenses
SG&A expenses margin

FY12/09 2Q

YoY change

FY12/10 2Q

Amount

Pct.

2,762

3,348

+ 586

+ 21.2%

18.4%

19.5%

+ 1.1p-Increased YoY as a result of opening new large outlet and increasing staffs to strengthen the group.
● Personnel expenses increased YoY due mainly to increase in staffs associated with opening of Iseyama outlet andincrease in staffs to strengthen the group.
● Advertising expenses slightly increased in accordance with increase in outlets but because of higher sales, SG&A
expense ratio remained low compared with net sales resulting in 4.4%.

【 Pre-operating Expenses 】
Million yen

Pre-operating expenses
Pct. of sales

FY12/09 2Q

YoY change

FY12/10 2Q

Amount

Pct.

203

316

+ 112

+ 155.3%

1.4%

1.8%

+ 0.4p-*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 YoY for recording pre-operating expenses for Iseyama outlet (6 guest houses) in Yokohama.
● With the opening of Iseyama outlet in Yokohama in May, recorded cost of consumables, etc. at the time of opening.
(Cost of sales)● Recorded “personnel expenses, rental expense, etc.” of preparatory office before opening as pre-operating expenses.
(SG&A expenses)

7

Consolidated Operating Profit, Ordinary Profit and Net Profit
Million yen

FY12/09 2Q

FY12/10 2Q

YoY change
AmountPct.

Operating profit

2,484

2,696

+ 211

+ 8.5%

Operating margin

16.5%

15.7%

- 0.8p-Ordinary profit

2,497

2,540

+ 43

+ 1.8%

Ordinary profit margin

16.6%

14.8%

- 1.8p-

Net profit

1,402

1,367

- 34

- 2.5%

9.3%

8.0%- 1.3p-

Net profit margin

Operating profit and ordinary profit reached record high in 2Q because of increase in earnings in the domestic operations.

【Operating profit 】● Continued to mark a record high as favorable domestic operations absorbed the expense for opening new large outlets
and increase in SG&A expenses including personnel expenses.

【Ordinary profit 】● Recorded an exchange loss of ¥112 million (a ¥47 million exchange gain YoY) due to lower won.
Non-operating income and expenses worsened YoY but were absorbed by increase in operating profit and reachedrecord high.

【Net profit】● Recorded a loss of ¥22 million on disposal of fixed assets as an extraordinary loss but income before income taxes
increased YoY.
Net profit slightly decreased YoY as s result of increase in tax expenses.

8

Summary of Domestic Operations
Million yen

FY12/09 2Q

YoY change

FY12/10 2Q

AmountPct.

13,812

15,811+ 1,998+ 14.4%

No. of guest houses at end of period

46

53

+7

-

Of which multi-guest house type

31

40

+9

-

Of which Double-guest house type

10

8

-2

-

Of which Single-guest house type

5

5

-

-

No. of weddings

3,200

3,561

+ 361

+ 11.3%Operating rate

62.1%

62.6%

+ 0.5p-¥ 4,208thousand¥ 4,218thousand+ ¥ 10thousand+ 0.2%Net sales

Average revenues per couple ※※※Average revenues per couple does not include “weddings only” and “general banquet”.
※Decrease in the no. of double-type compared with FY12/09 2Q is because of changing Aoyama outlet to multi-type and is not because of closing the outlets.

Big increase in net sales YoY due to the contribution of new outlets, in addition to favorable sales of existing outlets.
● Favorable sales 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 revenues per couple for getting a good start.
● Opening of Iseyama outlet in Yokohama and an additional 1 guest house in Aoyama in FY12/09 raised the number ofguest houses from 46 to 53 in 2Q.

9Domestic 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 ※FY12/09 2Q

YoY change

FY12/10 2Q

AmountPct.

13,502
3,968

13,763
3,968

+ 261
+0

+ 1.9%+ 0.0%

29.4%

28.8%

- 0.6p

-

821

824

+2

+ 0.3%

6.1%

6.0%- 0.1p

-

3,146

3,144

-2

- 0.1%

23.3%

22.8%

- 0.5p

-

3,126
62.7%

3,178
62.5%

+ 52
- 0.2p¥4,208thousand¥4,193thousand-¥ 14thousand+ 1.7%- 0.3%

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). To assure comparability, YoY changes are calculated based on only existing outlets in operation for a full year.
※Average revenues per couple does not include “weddings only” and “general banquet”.

Favorable performance of existing outlets raised the number of weddings held and net sales. Operating profit was the same as
in FY12/09 2Q.

● Strong orders increased the number of weddings held resulting in sales increase.
● Average revenues per couple slightly decreased YoY as the number of weddings held at small-group guest houses
pushed the overall average down.
● Drop in average revenues per couple slightly reduced profit margin but operating profit remained the same as in
FY12/09 2Q due to higher sales.

10

Domestic Operations – New Outlet Iseyama Hills

Op en ed in May

A large outlet aiming to be the region’s No.1
A good location, which is only 5-minute walkfrom 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 be used
for an authentic shrine wedding

11
11

Domestic Operations – New Outlet Iseyama Hills

Oxford Garden

Venetian Gran

Bamboo Court

Diversified guest houses with various types and concepts

Blanche, Paris

Oriental, New York

Gramercy Sweet

Domestic Operations － Situation of Facilities

Multi-guest
house type
10 facilities, New Iseyama（（6））
40 guest
houses12

Yokohama（（4））

Aoyama（（3））

Shinurayasu（（5））

Omiya（（4））

Nagoya-Yagoto（（4）） Nagoya-Noseki（（3））

Osaka（（5））

Kyoto（（3））

Sendai（（3））

Hoshigaoka（（2））

Shinsaibashi（（2））

Double-guest
house type
4 facilities,
8 guesthouses
Shirokane（（2））

Chiba（（2））

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

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

Ichigaya（（1））

Akasaka（（1））

Odaiba（
（1）
）

Tokyo

Tokyo area

NagoyaKansai

921

10

Nagoya-Marunouchi（（1））

Other areas

10

3

Total

53

13

Summary of Overseas Operations
FY12/09 2Q

YoY change

FY12/10 2Q

AmountPct.

¥1,208 million¥ 1,375 million+ ¥ 167 million+ 13.8%

9

9

1,115

1,253

－
+ 138

－
+ 12.4%

Direct sales in Japan

324

422

+ 98

+ 30.2%

Alliance sales including
travel agencies

596

564

- 32

- 5.4%

Direct sales in Hawaii/Bali
(DW)

195

267

+ 72

+ 36.9%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 sincerevenue per overseas wedding varies significantly.
The number of weddings held and net sales increased as a result of favorable direct sales and focusing on Destination Weddings.

● Direct sales in Japan and the number of Destination Weddings held increased resulting in big increase in the entire salesof overseas operations YoY.
● Direct sales were favorable due to a decline in fuel surcharge and market recovery resulting from the yen’s appreciation.
● The number of Destination Weddings continued to increase in FY12/10.

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

House of Iris

Exclusive use

Exclusive use

Exclusive use

St. Andrew’s Cathedral

Waioli Chapel

St. Mark‘s Episcopal Church

2 directly operated outlets in Bali

Tirtha Uluwatu

Tirtha Luhur Uluwatu

15

Consolidated Balance SheetsA
A ss ss ee tt ss

Liabilities
Liabilities andand netnet assets
assets *Details are on the next page

Increase in tangible fixed assets

Interest-bearing debt

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

Dec. 31, ’09 Jun. 30, ’10
9,536
9,503
Current assets
Cash and deposit
7,933
7,647
Accounts receivable72
266
Products
95
98
Raw materials and inventory goods
303
358
27,98530,447
Fixed assets
Tangible fixed assets
20,84921,487
Buildings and structures
18,55023,132Others2,460
2,862
Accumulated depreciation-8,383-9,338
Land
4,569
4,569
Construction in progress
3,652
261
Intangible fixed assets
310
274
Investments and other assets
6,826
8,685
Investment securities
903
1,659
Lease and guarantee deposits
2,708
3,889
Construction assistance fund
1,151
1,086
receivables
8
Deferred assets
16
37,53039,968
Total assets

Million yen

Change

-32
-286
194
3
55
2,461
638
4,581
402
-954
-3,390
-35
1,859
756
1,181
-64
7
2,437

Amount of interest-bearing debt ： ¥ 17,402mn (Up ¥331million from Dec. 31, ’09)

Net assets
Net assets ： ¥13,654mn （Up ¥1,108mn from Dec. 31, ’09）

Dec. 31, ’09 Jun. 30, ’10
Total liabilities
24,984
26,287
Current liabilities
9,511
9,683
Accounts payable
1,484
1,686
Short-term debt
300
0Current portion of long-term debt
2,433
2,743
Current portion of bonds
376
436
Accrued amount payable
1,976
1,164
Advances received
1,453
2,203
Fixed liabilities
15,472
16,603
Bond
890
1,162
Long-term debt
13,072
13,061
Provision for loss on cancellation
261
231
of lease contract
Net assets
12,546
13,680Shareholders’ equity
12,67913,843
Capital/capital surplus
1,106
1,106
Retained earnings
11,573
12,737
Valuation and translation adjustments
-133
-189
Minority interest
25
Total liabilities and net assets
37,53039,968Million yen

Change

1,302
171
201
-300
310
60
-812
750
1,131
272
-10
-30
1,134
1,163
1,163
-55
25
2,437

16

Interest-bearing Debt Balance and Shareholders’ Equity and Equity Ratio

The repayment of interest-bearing debts of outlets opened almost
Shareholders’ equity and equity ratio
開業済店舗分の有利子負債は、4期後にほぼ返済完了
completedafter FY12/13
Shareholders’InterestShareholders’ equity exceeded ¥13.6bn and equity ratio improved
Interest-bearing debts of outlets opened is expected to be reducedby 34%
substantially each period
Small increase in balance in Jun. 30, ’10 because of fund for
Vs. Dec. 31, ’09: Shareholders’ equity was ¥1,108mn and equity
building Iseyama outlet in Yokohama
ratio improved by 0.7%
Interest-bearing debt balance as of Jun. 30, ’10
Estimated equity ratio will be raised to 40% on Dec. 31, ‘10
and outlook for balance at the end of year
Estimated equity ratio based on the current FY12/10 forecasts
Estimated year-end interest-bearing debt balance basedon the current debt and redemption

Million yen

17,402
17,071460Interest-bearing debt related
to the construction of Iseyama
outlet in Yokohama

15,000
7,064

Million yen
Interest-bearing debt
related to theconstruction of Omiya
outlet8,000

15,00013,654
12,54634.2%

10,765

10,000

33.4%

9,490

10,000
8,393

10,007

32.0%

7,594

8,942
6,313

5,000

29.3%

5,000
26.2%

Interest-bearing debts of outlets opened and others
Dec. 31, ’09

Jun.30, ’10

Dec. 31, ’10

Dec. 31, ’11

Dec. 31, ’12

Dec. 31, ’13

22.3%

22.7%

Jun.30,’07

Dec. 31,’07

Jun.30,’08

Dec. 31,’08

Jun.30,’09

Dec. 31,’09

Jun.30,
’10

17

18

Consolidated Business Forecasts for FY12/10
Million yen

FY12/09 Actual

FY12/10 Forecast

ChangeAmountPct.

Net sales

32,49137,700+ 5,208+ 16.0%Operating profit

6,269

6,800

+ 530

+ 8.5%

19.3%

18.0%

-1.3p

－

6,167

6,500

+ 332

+ 5.4%

19.0%

17.2%

- 1.8p

－

3,390

3,600

+ 209

+ 6.2%

10.4%

9.5%

- 0.9p－¥ 41,548.42¥ 44,117.65+ 6.2%¥ 5,000¥ 5,000-%

Operating margin
Ordinary profit
Ordinary profit margin
Net profit
Net profit margin
EPS
Annual dividend per share※ The above figures include consolidated net sales of ¥1,240mn and net loss of ¥20mn of new subsidiary Best Hospitality Heart Inc.
Domestic operations are expected to be the key sales driver leading sales and earnings to increase substantially and marking
a record high.
※sales to mark a record high for 15● Domestic operations will continue to be the key sales driver leading consolidated net
consecutive periods* since the Company’s establishment.
※
will mark a record● Increase in gross profit due to higher sales. SG&A expenses will increase only slightly and operating profit
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 record high for 15 consecutive periods※* and net profit for 7 consecutive periods since the Company’s establishment.

※ Excluding FY12/00 which was a 5-month transitional period due to a change in the fiscal year end.

19

Consolidated Business Results
N e t

s a l e s

Operating profit

37,700Million yen

6,800

Million yen

Operating profit

N e t

p r o f i t

Million yen

Million yen

3,600

6,500
6,077

32,491

6,269

3,390

6,167

31,07328,259

5,043

2,453

4,805

1 9 .6 %4,534

1 9 .3 %Operating margin

2,104

1 9 .0 %Ordinary profit
margin1 8 .0 %1 7 .0 %1 6 .0 %1 7 .2 %1 6 .2 %

10.4%
9.5%
Net profit margin

7.4%

2007

2008

2009

Million yen

Net sales
Operating profit
Ordinary profit
Net profit

2010 est.

2007

2008

FY12/0728,259
4,805
4,534
2,104

2009 2010 est.

2007

FY12/08

31,073
6,077
5,043
2,453

2008

2009

2010 est.

2007

FY12/09

32,491
6,269
6,167
3,390

7.9%

2008

2009

2010 est.

FY12/10 (est.)

37,700
6,800
6,500
3,600

20

Domestic Operations – Business Forecasts
FY12/09 Actual
Net sales

ChangeFY12/10 Forecast¥ 29,978million

AmountPct.

※¥ 34,950million + ¥ 4,971million+ 16.6%

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

-

-

7,900

+ 948

+ 13.6%

No. of weddings

6,952

※

※ The above forecast of domestic operations sales includes consolidated net sales of ¥1,240mn of new subsidiary Best Hospitality Heart Inc.
※ The above estimated no. of weddings held does not include the outsourcing of operations of Best Hospitality Heart Inc.

Expect continued increase in sales in FY12/10 mainly because of increase in sales from a new subsidiary and opening new outlet.

● Sales increase for converting new subsidiary Best Hospitality Heart Inc. into Best Bridal consolidated subsidiary
and Noseki outlet opened in March 2009 in Nagoya contributed to revenues for the full year, expecting continued
increase in sales YoY.
● Iseyama outlet opened in May 2010 in Yokohama made a big contribution to increase in sales.
● 6 guest houses were newly opened raising the number of guest houses from 47 to 53 at the end of year.

Domestic Operations – Number of Weddings Held and Achievement Rate

21

【Big increase in the estimated no. of weddings held in FY12/10 2Q.
Orders are increasing steadily that the orders for FY12/10 2Q are almost accomplished.】
No.of weddings held for FY12/10
No. of weddings
8,000

Achievementrate＝

No. of weddings held + Orders received (for FY12/10 2Q)
No. of weddings planned for FY12/10

7,900
6,952

7,000

6,352
6,000

No. of weddings
planned for FY12/10
Achievement rate at
the end of 2Q

77,900,900 件97.7 ％

5,601

5,000

4,451
4,000

3,057

3,000

3,185

Orders received

52.6 %

2,268

No. of weddings held

45.1 %

2,000

1,165
1,000

0

824

FY12/01 02/12 03/12 04/12

05/12 06/12 07/12 08/12 09/12 FY12/10(est.)※The above estimated no. of weddings held does not include the outsourcing of operations of Best Hospitality Heart Inc.

22

Overseas Operations – Business Forecasts
FY12/09 Actual
Net sales
Year-end Facilities
No. of weddings

FY12/10 Forecast

ChangeAmountPct.

¥ 2,513million¥ 2,750million+ ¥ 236million+ 9.4%

9

9

-

-

2,278

2,800

+ 522

+ 22.9%Anticipate increases in the no. of weddings held and net sales due to an alliance with Kuraudia, in addition to direct sales
with strong 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.
● Expect a continued increase in the number of Destination Weddings held in FY12/10.

23

Future Strategies

24

Continue with new business strategies aiming for a corporate entity which enables continuous and stable growth.

Strategies for Domestic Operations
1. Region’s No.1 outlet strategy (opening of large outlets in major cities, incremental development adjacent areas, etc.)
2. Target a broad range of needs for wedding ceremonies (Japanese ceremonies, small ceremonies, ceremony-only, etc.)
3. Efficiently strengthen existing outlets through re-innovation
4. Development of Business Portfolio (Outsourcing of operations, approach toward revitalization business)
5. Strengthen efforts toward after-party business

Strategies for Overseas Operations
6. Provision of weddings that meets the diversified customer needs in Hawaii(Cathedral weddings, guest house weddings, etc.)
7. Continue to take an active approach toward Destination Weddings

Corporate Strategies
8. Continue to strengthen financial position toward financial soundness
9. Continue to strengthen the hiring of new graduates and development of human resources
10. Further strengthen the governance function and compliance of the entire group including subsidiaries

Strategies for Domestic Operations – 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 ofdiverse concepts.
Aim for overwhelming No.1 outlets in region where outlets are located as well as attract customers who shiftedto hotel weddings
Wedding halls Chapels and an authentic temple which create various wedding scenes

Stained glass cathedral Ocean view church

Church surroundedby forest

Church surroundedby water

An authentic temple

Western style wedding

Guest houses Diversified guest houses which differ in type and concept

British styleFrench 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

25

26

Strategies for Domestic Operations – Strategies for Opening Outlets
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 Omiya ArtGrace Wedding Chateaux27

Further expand Omiya outlet, which is performing well, in the spring of 2011, aiming for the region’s No.1 outlet in Saitama.
Opened in March 2006
Existing 4 Guesthouse TypeOne of the most appealing wedding halls in Saitama with high profitability

Omiya ArtGrace Wedding Chateaux

One of Japan’s largest
churches＋
Adjacent to the existing outlet

Omiya Rikyu(tentative)(tentative)

4 guesthouses, each with a different
design motif and capacity

Able to attract many guests andmaintain a high utilization rate

4 more guesthouses(slated to open in spring 2011)

Further develop toward region’s overwhelming No.1 outlet by responding tovarious wedding needs and enhancing amenities

Enhance amenities,
including an authentic
Japanese garden anda large lobby

Excellent weddinghalls including
aquatic temple andchurch surrounded by
water

Resort-style ceremonies
are also possible,
including at a penthousethat floats on water
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
The above pictures of garden, wedding halls and guesthouses are all renderings

28

Strategies for Domestic Operations – Development of Business Portfolio

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

Acceptance of operations

Conventional outlet

Large outlet

Establish a subsidiary incollaboration with Hospitality
Network Inc. which operates HotelIntercontinental Tokyo Bay.

Develop outlets mainly in large
markets including the Tokyo
metropolitan area, Chukyo area
and Kansai.

Increase the no. of weddings halls
by enlarging the outlets and further
enhance amenities.

Accept the entire wedding
ceremonies and banquet businesses
through the subsidiary andintroduce Best Bridal’s bridal
business knowhow.

Implement regular, effective andefficient re-innovation to realize
high competitiveness of outlets
and high profitability.

Hotel Intercontinental Tokyo Bay

Compared with conventional
outlets, the investment amount will
increase but able to attract morecustomers and realize highprofitability.
Iseyama Hills

Revitalization
Use existing facilities to open a
new outlet in a short period of timeand at a lower investment amountcompared with constructing a newoutlet.
Revitalize business in a shortperiod of time by introducing Best
Bridal’s knowhow.

29

Strategies for Overseas Operations and Subsidiary
Use business alliances and cut fixed expenses to strengthen operations while preparing for new initiatives.
Resume growth once the market starts to recover.
Continue and strengthen Destination Weddings

Continue to aggressively promote DWs by using directly produced weddings to reinforce the Best Bridal brand andreputation for quality.
Destination
Weddings
held

FY12/05

FY12/06

FY12/07

FY12/08

FY12/09

5

144

338

380

460

Strengthening of DWs raises the no. of weddings held annually

Continue andstrengthen active
approach

Acqua Grazie, Inc.: Opened as a flagship store within Aoyama Belle Commons and a large store in Yokohama Landmark
to further strengthen profitability.

Acqua Grazie
Aoyama Main Store

Further strengthen Aqua Grazie, which operates highly
profitable business, centering on wedding dress rental.
Merge and enlarge the main store in
Aoyama and Aoyama Nord store.
Further strengthen product lineup to
attract more customers and to be highly
profitable.

3F Belle Commons in Aoyama

Landmark Tower
Yokohama store

Open a large store in Yokohama
Landmark Tower this summer. Expand
revenues through synergy between
Yokohama and Iseyama stores.

Opens this summer on the 10F of Yokohama Landmark Tower

30

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: 1,106 Non-consolidated: 422

Shares81,600 shares No trading unit

issuedShareholders

1,086

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 June 30, 2010

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 purchasesecurities issued by the Company. Except where noted otherwise, all financial and corporate data are as of June 30, 2010. Opinions, forecasts and other statements notbased on historical facts represent the judgments of management at the time this presentation was prepared. Best Bridal makes no guarantees that these statements areaccurate 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