〔Delayed〕The original disclosure in Japanese was released on November 8, 2013 at 15:00 (GMT+9)

November 8, 2013

Best Bridal Inc.
Consolidated Earnings Report for the Nine Months ended September 30, 2013
(Japanese GAAP)
Stock listing: Tokyo Stock Exchange (First Section)
Securities code: 2418
URL: http://www.bestbridal.co.jp/english/
Representative: Masayuki Tsukada, President and CEO
Information contact: Keiji Ishihara, Director
Tel: +81-3-5464-0081
Scheduled dates:
Filing of statutory quarterly financial report (sihanki hokokusho): November 14, 2013
Dividend payout:
Supplementary materials to quarterly financial results available: No
Quarterly earnings presentation held: No(Amounts rounded down to the nearest million yen)

1. Consolidated Performance for the Nine Months ended September 30, 2013
(January 1, 2013 – September 30, 2013)(1) Consolidated Operating Results
Net sales
million yen(Percentages indicate year-on-year changes)
Operating income
million yen%

Ordinary income
million yen%%
Nine months ended
32,945
8.4
3,362
11.8
3,464
14.6
September 30, 2013
Nine months ended
30,400
7.1
3,008
1.7
3,021
7.7
September 30, 2012
Note: Comprehensive income: Nine months ended September 30, 2013:
1,988 million yen (50.0 %)Nine months ended September 30, 2012:
1,325 million yen (47.0%)

Net income per shareyen

Net income
million yen%

Diluted net income per
share
yen

Nine months ended
38.73
38.53
September 30, 2013
Nine months ended
27.08
September 30, 2012
(Note) Effective July 1, 2013, the Company conducted a 1:200 common stock split. Net income per share wascalculated assuming that the stock split was effected at the beginning of the fiscal year ended December 31, 2012.
(2) Consolidated Financial Position

September 30, 2013

Total assets
million yen
52,015Equity ratio%

Net assets
million yen
22,22348,381
20,815
December 31, 2012
Reference: Total equity: September 30, 2013: 22,223 million yen
December 31, 2012: 20,815 million yen
Total equity=Shareholders’ equity plus total accumulated other comprehensive income.

1

42.7
43.0

1,895

43.0

1,326

44.3

2. Dividends
End-Q1yen

Dividend per share
End-Q3yen

End-Q2yenYear ended
1,000.00
December 31, 2012
Year ending
1,000.00
December 31, 2013
Year ending
December 31, 2013
(Forecast)
Note: No revision has been made to the latest dividends forecast.

Year-endyen

Annual total
yen

1,000.00

2,000.00

5.00

-

-

Effective July 1, 2013, the Company conducted a 1:200 common stock split. The year-end dividend for the fiscal
year ending December 31, 2013 (forecast) reflects the stock split.

3. Earnings Forecast for the Fiscal Year ending December 31, 2013
(January 1, 2013 – December 31, 2013)(Percentages indicate year-on-year changes)
Net income per
Net sales
million yen%

Operating income
million yen%

Ordinary income
million yen%

Net income
million yen%

Year ending
48,200
8.3
7,400
13.5
7,300
10.4
4,300
31.5
December 31, 2013
Note: No revision has been made to the latest earnings forecast.
Effective July 1, 2013, the Company conducted a 1:200 common stock split. Net income per share for the fiscal year
ending December 31, 2013 in the above earnings forecast reflects the stock split.

*Notes(1) Changes affecting the consolidation status of significant subsidiaries during the period: None
(2) Use of accounting methods specific to the preparation of quarterly consolidated financial
statements: Yes(3) Changes in accounting policy, changes in accounting estimates, and retrospective
restatement
1) Changes in accordance with amendments to accounting standards, etc.: Yes
2) Changes other than noted in 1) above: None
3) Changes in accounting estimates: Yes
4) Retrospective restatement: None
(Note) This relates to Article 10-5 of the Regulations on the Terminology, Format andPreparation of Quarterly Consolidated Financial Statements. For details, please refer to“(3) Changes in Accounting Policy, Changes in Accounting Estimates, andRetrospective Restatement” in section “2. Other Information” on page 7 in theaccompanying materials.

2

share
yen
87.91

(4) Shares issued (common stock)1) Number of shares issued at end of period(including treasury stock)2) Number of shares held in treasury at end of
periodSeptember 30, 2013

December 31, 2012

48,960,000

48,960,000

135,000-

Nine months ended Nine months ended
September 30, 2013 September 30, 2012
3) Average number of shares outstanding during
the period

48,946,649

48,960,000

Effective July 1, 2013, the Company conducted a 1:200 common stock split. The number of shares issued at
end of period (common stock) was calculated assuming that the stock split was effected at the beginning of the
fiscal year ended December 31, 2012.

* Quarterly Review Status
This report is exempt from the review requirements of Japan’s Financial Instruments and Exchange Act. Asof this report publication, a review of the consolidated quarterly financial statements in accordance with the
Act is underway.

*Appropriate Use of Earnings Forecast and Other Important Information
1. The above forecasts are based on information available as of this report’s publication. Actual
results may differ from forecasts due to changes in the business environment. For theassumptions underlying the forecasts herein and other notice on the use of earnings forecasts,
please refer to “Earnings Forecast for the Fiscal Year ending December 31, 2013” in the section“Review of Consolidated Financial Results” on page 6 in the accompanying materials.
2. Effective July 1, 2013, the Company conducted a 1:200 common stock split. The forecast of
year-end dividend for the year ending December 31, 2013 and the forecast of net income per sharefor the fiscal year ending December 31, 2013 reflect the stock split.

3

Accompanying Material – Contents
1. Review of Consolidated Financial Results(1) Operating Results(2) Financial Condition(3) Earnings Forecast for the Fiscal Year ending December 31, 2013
2. Other Information(1) Changes in Significant Subsidiaries(2) Application of Specific Accounting Methods for the Preparation of Quarterly
Financial Statements(3) Changes in Accounting Policy, Changes in Accounting Estimates, andRetrospective Restatement
3. Consolidated Financial Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income(3) Note on the Going-concern Assumption(4) Note on Significant Changes in the Amount of Shareholders’ Equity(5) Segment and Other Information
4. Supplementary Information

4

5
5
5
6
7
7
7
7
8
8
10
10
11
12
12
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1. Review of Consolidated Financial Results(1) Operating Results
In the first nine months of the fiscal year ending December 31, 2013, the Japanese economy
showed signs of a self-sustaining recovery owing to yen depreciation, a rebound in stock prices,
and an upturn in personal consumption fueled by the government’s economic stimulus measuresand the Bank of Japan’s monetary easing policy. Overall, however, the outlook for the economy
remained uncertain due to rising electric power and raw materials costs, as well as concerns about
a possible downturn in overseas economies.
In this environment, the Best Bridal Group endeavored to increase sales and profitability bycontinually creating new value in the guest house and wedding business through high-quality,
appealing outlets and value-added services, and by taking proactive efforts to enhance businessefficiency.
As a result of the above factors, the Group posted net sales of ¥32,945 million in the first ninemonths of the fiscal year, an increase of 8.4% over the same period of the previous fiscal year.
Operating income totaled ¥3,362 million, a year-on-year increase of 11.8%, ordinary income
amounted to ¥3,464 million, up 14.6% year on year, and net income totaled ¥1,895 million, up
43.0% year on year.
Results for each business segment were as follows.
1) Domestic operations
The completion of renovations at Hotel InterContinental Tokyo Bay and the successful start ofsuch new businesses as budget weddings and family weddings contributed to higher sales in theGroup’s domestic operations in the nine months ended September 30, 2013. The sales increase
was also supported by steady growth in the number of weddings held at existing outlets.
As a result, net sales in the domestic business totaled ¥30,896 million, a year-on-year increaseof 8.9%, and segment income totaled ¥4,329 million, up 11.0% year on year.
2) Overseas operations
The number of weddings held and orders placed in the nine-month period was largely unchanged
versus the same period of the previous fiscal year despite a moderate recovery in overall market
conditions.
As a result, net sales in the overseas business totaled ¥2,048 million, a year-on-year increase of
1.3%, while segment income declined 85.5% year on year to ¥23 million.
(2) Financial Condition
Assets, Liabilities, and Net Assets
Total assets at the end of the third quarter (September 30, 2013) amounted to ¥52,015 million, an
increase of ¥3,634 million from the end of the previous fiscal year (December 31, 2012). This waslargely the result of increases of ¥2,533 million in cash and deposits in conjunction with theissuance of convertible bonds, ¥300 million in marketable securities, and ¥790 million in otherinvestments.
Liabilities at the end of the third quarter totaled ¥29,792 million, an increase of ¥2,226 million
compared with the end of the previous fiscal year. This was mainly due to the ¥5,000 million
issuance of convertible bonds and a ¥551 million increase in advances received, which
5outweighed a ¥1,863 million decrease in income taxes payable and a net decrease of ¥1,032
million in borrowings and bonds.
Net assets at the end of the third quarter totaled ¥22,223 million, an increase of ¥1,407 million
from the end of the previous fiscal year. This was mainly due to the booking of ¥1,895 million in net
income for the nine months ended September 30, 2013, which outweighed ¥90 million in
acquisition of treasury stock, and ¥489 million in dividends paid from retained earnings.
(3) Earnings Forecast for the Fiscal Year Ending December 31, 2013
There is no change to the consolidated earnings forecasts for the year ending December 31, 2013,
which the Company announced on February 14, 2013.

6

2. Other Information(1) Changes in Significant Subsidiaries
Not applicable.
(2) Application of Specific Accounting Methods for the Preparation of Quarterly Financial
Statements(Simplified accounting methods)
1) Calculation method for depreciation of fixed assets
Depreciation expenses for assets to which the declining-balance method is applied are calculatedby allocating a quarterly proportion of the amount for the full fiscal year.
2) Calculation method for deferred tax assets and deferred tax liabilities
Regarding judgments on the amount of recoverable deferred tax assets, the Company has
determined that there have been no significant changes in the economic environment or
emergence of temporary differences since the end of the previous fiscal year, and therefore thecalculations are based on future earnings forecasts and tax planning methods from the previous
fiscal year.
(Special accounting treatments)
Calculation of taxes
The Company calculates tax liabilities by producing a reasonable estimate of the effective tax rate
after applying tax-effect accounting to income before income taxes and minority interests for the
fiscal year, which encompasses the nine months ended September 30, 2013, and then multiplying
income (loss) before income taxes and minority interests by this estimated effective tax rate. In
cases where this estimated effective tax rate cannot be used, the statutory effective tax rate is used.
(3) Changes in Accounting Policy, Changes in Accounting Estimates, and Retrospective
Restatement(Changes in accounting policies that are difficult to distinguish from changes in accounting
estimates)
In accordance with the revision of the Corporation Tax Act of Japan, the depreciation method fortangible assets acquired on or after January 1, 2013, has been changed to the method under therevised Act from the first quarter of this fiscal year.
The impact of this change on the Company’s profits is minimal.
(Changes in accounting estimates)
In accordance with the completion of refurbishment of some buildings used under the tenancy
agreement, the Best Bridal Group has reduced in the third quarter of the current fiscal year theestimated restitution cost expected to arise in the future.
As a consequence, operating income, ordinary income, and income before income taxes andminority interests for the nine months ended September 30, 2013, were ¥18 million higher
compared with what they would have been under the previous accounting method.

7

3. Consolidated Financial Statements(1) Consolidated Balance Sheets

AssetsCurrent assets
Cash and deposits
Accounts receivable - tradeMarketable securities
Merchandise
Raw materials and supplies
Other
Allowance for doubtful receivables
Total current assets
Fixed assets
Tangible assets
Buildings and structures, net
Land
Other, net
Total tangible assets
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Other
Total investments and other assets
Total fixed assets
Deferred assets
Total assets

8

December 31, 2012

(millions of yen)
September 30, 2013

AmountAmount11,314
333
39
327
1,188
(48)
13,154

13,847
366
300
3
350
1,317
(48)
16,137

16,2474,760
1,216
22,224

15,664
4,756
1,295
21,716

1,042
231
1,273

982
196
1,178

5,827
5,870
11,69735,19532
48,381

6,263
6,660
12,92335,81859
52,015

December 31, 2012
Amount(millions of yen)
September 30, 2013
AmountLiabilities
Current liabilities
Accounts payable - trade
Short-term debt
Current portion of long-term debt
Current portion of bonds
Income taxes payable
Advances received
Provision for loss on cancellation of rental contract
Other
Total current liabilities

2,157
3,191
612
2,237
942
52
2,527
11,722

2,081
460
2,942
484
373
1,494
52
2,283
10,172

Fixed liabilities
Bonds
Convertible bonds
Long-term debt
Provision for employees’ retirement benefits
Provision for directors’ retirement benefits
Provision for loss on cancellation of rental contract
Asset retirement obligations
Other
Total fixed liabilities
Total liabilities

1,590
11,230
268
594
100
1,068
992
15,84427,5661,156
5,000
10,549
276
626
61
1,079
871
19,62029,792472
634
19,72920,836472
634
21,136(90)
22,152

41

52

13

29

(76)
(21)
20,81548,381(10)
70
22,22352,015

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gain on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets

9(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Gain on investments in silent partnership
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of derivatives
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of fixed assets
Total extraordinary income
Extraordinary loss
Shop closing expenses
Loss on disposal of fixed assets
Total extraordinary loss
Income before income taxes and minority interests
Income taxes
Income before minority interests
Net income

10

Nine months ended
September 30, 2012
Amount30,40020,603
9,797
6,789
3,008

(millions of yen)
Nine months ended
September 30, 2013
Amount32,94522,063
10,881
7,519
3,362

41
108
45
102
297

47
122
65
144
380

235
29
18
283
3,021

194
75
8
278
3,464

0
0

0
0

74
74
2,947
1,621
1,326
1,326

6
36
42
3,421
1,525
1,895
1,895

Consolidated Statements of Comprehensive Income

Income before minority interests
Other comprehensive income
Net unrealized gain on available-for-sale securities
Deferred gain (loss) on derivatives under hedge
accounting
Foreign currency translation adjustments
Share of other comprehensive income of affiliates
accounted for under the equity method
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to owners of theparentComprehensive income attributable to minority
interests

11(millions of yen)
Nine months ended Nine months ended
September 30, 2012 September 30, 2013
AmountAmount
1,326
1,895
30

10

(3)

16

(32)

45

4

20

(0)
1,325

92
1,988

1,325

1,988

-

-

(3) Note on the Going-concern Assumption
Not applicable(4) Note on Significant Changes in the Amount of Shareholders’ Equity
During the nine months ended September 30, 2013, the Company acquired 135,000 shares of its
capital stock for ¥90 million based on the resolution made at the board of directors’ meeting held
on September 3, 2013. As a result, as of the end of the third quarter of the current fiscal year
(September 30, 2013), treasury stock amounted to 135,000 shares worth ¥90 million.
(5) Segment and Other Information
I. Nine Months ended September 30, 2012 (January 1 to September 30, 2012)
1. Net sales and income/loss by reportable segment(millions of yen)
Reportable segment
Domestic
operations

Overseas
operations

Total

Adjustments(note 1)

Amount recordedon consolidated
statements ofincome (note 2)

Net sales
Sales to outside
28,3782,022
30,40030,400
customers
Inter-segment sales
5
0
5
(5)
and transfers
Total
28,384
2,022
30,406(5)30,400
Segment income
3,900
159
4,060
(1,052)
3,008
Note: 1. The minus ¥1,052 million adjustment for segment income includes ¥11 million eliminationof inter-segment sales and minus ¥1,064 million of unallocated corporate expenses. The
main component of these unallocated corporate expenses is SG&A expenses that are not
attributable to reportable segments.
2. Segment income adjustments are based on operating income reported on the quarterly
consolidated statements of income for the corresponding period.
2. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable12II. Nine months ended September 30, 2013 (January 1 to September 30, 2013)
1. Net sales and income/loss by reportable segment(millions of yen)
Reportable segment
Domestic
operations

Overseas
operations

Total

Adjustments(note 1)

Amount recordedon consolidated
statements ofincome (note 2)

Net sales
Sales to outside
30,896
2,048
32,94532,945
customers
Inter-segment sales
5
0
5
(5)
and transfers
Total
30,901
2,049
32,950(5)
32,945
Segment income
4,329
23
4,352
(990)
3,362
Note: 1. The minus ¥990 million adjustment for segment income includes ¥11 million yen eliminationof inter-segment sales and minus ¥1,002 million yen of unallocated corporate expenses.
The main component of these unallocated corporate expenses is SG&A expenses that are
not attributable to reportable segments.
2. Segment income adjustments are based on operating income reported on the quarterly
consolidated statements of income for the corresponding period.
2. Impairment loss on fixed assets or goodwill by reportable segment
Not applicable13

4. Supplementary Information
Weddings Held, Orders Received, and Sales volume
1) Number of weddings held
Nine months ended
September 30, 2012

Nine months ended
September 30, 2013

Year ended December
31, 2012

Number of weddings

Number of weddings

Number of weddings

Domestic operations

held (cases)
6,508

held (cases)
7,049

held (cases)
9,543

Overseas operations

2,097

2,092

2,974

Total

8,605

9,141

12,517

Nine months ended
September 30, 2013

Year ended December
31, 2012

Segment

2) Orders received
Nine months ended
September 30, 2012
Orders

Order

Orders

Order

Orders

Order

Segment

receivedbacklog

receivedbacklog

receivedbacklog

Domestic operations(cases)8,166(cases)7,120(cases)7,535(cases)6,682(cases)
10,277(cases)6,196Overseas operations

2,376

1,733

2,355

1,685

2,942

1,422

Total

10,542

8,853

9,890

8,367

13,2197,6183) Sales volume
Nine months ended
September 30, 2012

Nine months ended
September 30, 2013

Year ended December
31, 2012

Domestic operations

million yen
28,378million yen
30,896

million yen
41,633

Overseas operations

2,022

2,048

2,861

30,40032,94544,494

Segment

Total

Notes: 1. Inter-segment transactions have been eliminated from the amounts shown above.
2. The above amounts do not include consumption tax.

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