watabe wedding corporation briefing materials on ......watabe wedding corporation briefing materials...

WATABE WEDDING CORPORATION

Briefing Materials on Consolidated Results for the Second Quarter Ended June 30. 2019

2

❸ Business Activities

Copyright© 2019 WATABE WEDDING All Rights Reserved. 3

Consolidated Highlights P3～14

P15～18

P47～50

Business Activities P19～46

Agenda

１

２

３

４

P51～545 Appendix

・Consolidated Performance by Business Segment

・Consolidated Balance Sheets

・Consolidated Statements of Cash Flows

Management Policies for FY2019

FY2019 Consolidated Performance Forecast

4

❶ Consolidated Highlights


Business Results

Net sales improved due to increased as efforts to promote brand value, such as developing products

tailored to customer needs, as the operation of new facilities was favorable. Operating profit increased

slightly, reflecting upfront costs incurred in connection with the launch of new businesses and

adjustments due to changes in the fiscal year-end. Ordinary profit: Operating income increased due to

higher non-operating income (foreign exchange gains).

Business Status Hotel Gajoen Tokyo leverages the unique characteristics of the Nippon Beauty Facility to actively

promote brand value in Japan and overseas, and both weddings and accommodations are

performing solidly.

HOTEL MIELPARQUE , we have implemented price controls that take into account market trends,

and have improved room unit prices and occupancy rates. The Photo Business was strengthened as

a directly managed WATABE WEDDING store, and the number of weddings increased, contributing

to earnings. Profits were on a par with the previous year due to an increase in the cost of sales ratio.

<Resort wededings> Number of weddings: +15.9%, Unit price: +9.2%, Segment sales: +15.1%

<Hotels and domestic weddings> Number of weddings ▲1.0%, Unit price +0.4%, Segment sales +2.5%

Hawaii's mainstay Koolina Chapel Place of Joy was operating favorably, and both the number of

couples and unit price rose, contributing to sales. Profits declined slightly due to higher SG&A

expenses associated with strengthened promotions for new facilities and the promotion of Growth

businesses.

Summary of the 2Q of the Fiscal Year Ended December 31, 2019

Net sales￥24.57

billion(YoY ￥22.6 billion in the same period of the previous year)

Operating profit ￥110million (￥610 million in the same period of the previous year)

Ordinary profit ￥820 million (￥670 million in the same period of the previous year)

Net profit ￥470 million (JPY380 million in the same period of the previous year)


Business Results

Revenues increased due to the full-year operation of the new facilities and the effects of various

sales measures in the sales strategy. Profits increased due to a significant improvement in profits

resulting from an increase in Net sales, despite an increase in SG&A expenses due to aggressive

advertising focused on new facilities and Growth businesses promotion.

Business Status

Hotel Gajoen Tokyo, leveraging the unique characteristics of a facility overflowing with beauty in

Japan, the company aggressively promoted brand value both in Japan and overseas, and both

weddings and accommodations performed strongly.

MIELPARQUE, prices were controlled in consideration of market trends, maintaining a high

occupancy rate and improving the average price per room. The photo business was strengthened

as a directly managed WATABE WEDDING store, and service the number of couples and the unit

price rose, contributing to earnings. Profits declined slightly due to an increase in the cost of

sales ratio.

<Resort weddings> Number of weddings: +16.1%, Unit price: +5.9%, Segment sales: +15.5%

<Hotels and domestic weddings> Number of weddings: +2.6%, Unit price: +2.8%, Segment sales: +3.8%

Ko-Olina Chapel Place of Joy, a mainstay facility in Hawaii, as well as an increase in both the

number of couples and the unit price due to the reorganization of directly managed stores

nationwide and the strengthening of contents such as original travel products. Profits increased

due to an increase in Net sales, despite an increase in SG&A expenses associated with the

strengthening of promotions for new facilities and Growth businesses promotion.

Summary of the 2Q of the Fiscal Year Ended December 31, 2019

Net sales ¥24.57 billion(¥22.6 billion in the same period of the previous fiscal year)

Operating profit (▲ indicates losses)

▲¥0.07 billion(▲¥450 million in the same period of the previous fiscal year)

Ordinary profit (▲ indicates losses)

¥110 million(▲¥340 million in the same period of the previous fiscal year)

Net income (▲ indicates loss)

¥0.04 billion(▲¥530 million in the same period of the previous year)


Item FY2018 FY2019 Y/Y change

Net sales 22,603 24,570 8.7%

Gross profit 15,321 16,532 7.9%

Gross margin 67.8% 67.3% ▲0.5pt

Selling, general andadministrative expenses

15,774 16,605 5.3%

SG&A ratio to net sales 69.8% 67.6% ▲2.2pt

Operating profit ▲453 ▲73 -

Operating profit margin ▲2.0% ▲0.3% 1.7pt

Ordinary profit ▲340 117 -

Ordinary profit margin ▲1.5% 0.5% 2.0pt

Net profit(loss) attributable toowners of parent

▲537 46 -

Consolidated Highlights for the First 6 Months of the Fiscal Year Ended December 31, 2019

（Millions of yen）


Quarterly consolidated financial results

Group quarterly (three month) revenues tend to be highest in the 3rd quarter.

（Millions of yen）（Millions of yen）Net sales Operating profit

1Q 2Q 3Q 4Q

1Q

2Q

3Q

4Q


Consolidated Performance

by Business Segment


Consolidated Performance by Business Segment

Item

FY2018 FY2019 FY2018 FY2019 FY2018 FY2019

Net sales 9,443 10,908 13,160 13,662 0 0

Segment profit ▲673 ▲264 207 144 13 46

Segment profit

margin▲7.1% ▲2.4% 1.5% 1.0% - -

Resort

wededings

Hotels and domestic

weddingsAdjustments


+1,465 +502

+4.7pt

▲63

▲0.5pt

+409


FY20182Q

FY 12/20192Q

Increase number of weddings

+ 314

Travel-related of business

+25+ 249

Wedding

Banquets ・

Others

22,603

26,266

24,570

10,908

26,163

+1,465

13,160

13,662

+502

+ 300Others

Resort wededings

9,443

+ 820+ 81


※ Excluding Adjustments

+ 176

【Resort weddings】【Hotels and domestic weddings】

HotelsIncrease unit price

Hotels and domestic weddings


Resortweddings

＜Net Sales＞

＜Net Sales＞

Changes in Net Sales by Consolidated Business Segment


Increase in SG&A expenses (including upfront investment)

+191


144

▲119

<Segment profit>

▲323

Increase unit price

+409


+41

Exchange rate

[Hotel]Domestic weddings

【Resort wededings】



▲673


207

Resort wededings

▲466

<Segment profit>

+500

▲63

▲63

▲264

Resort wededings

FY20182Q FY 2019 Ended Dec 31

2Q

Changes in Profit by Consolidated Business Segment


Consolidated Balance Sheets


8,620 8,226 ▲394

5,072 4,307 ▲765

15,815 16,477 661

9,561 10,030 469

1,642 1,891 249

4,611 4,555 ▲56

Total assets 24,436 24,703 267

Non-current

assets

Property,

plant and

equipment

Current assets

Cash and

deposits

FYMar/2019FYDec/2019

End of SEPChange

Intangible

assets

Investments

and other

assets

10,437 10,875 438

1,986 1,742 ▲244

1,200 2,200 1,000

3,421 3,560 138

1,000 800 ▲200

13,858 14,435 577

10,577 10,267 ▲309

2,735 2,687 ▲48

24,436 24,703 267Total liabilities

and net assets

Net assets

Retained

earnings

Long-term

loans payable

Total liabilities

Accounts

payable-trade

Short-term

loans payable

Non-current

liabilities

Current liabilities

FYMar/2019FYDec/2019

End of SEPChange


Quarterly Consolidated Balance Sheets


Consolidated Statements of

Cash Flows


34 382

Profit before income taxes

▲513 65

Depreciation & amortization

710 858

Foreign exchange losses (▲gains)

▲50 ▲156

Increase (decrease) in advances received

453 565

Income taxes refund(paid)

▲99 ▲280

▲1,542 ▲1,567

Purchase of property, plant and equipment

▲1,319 ▲1,297

Purchase of intangible assets

▲218 ▲300

Cash flows from investing activities

Cash flows from operating activities

FY Mar/20192Q

FY Dec/20192Q

679 645

Net increase in short-term loans payable

950 1,000

Proceeds from long-term loans payable

- -

Repayments of long-term loans payable

▲200 ▲200

72 ▲115

▲755 ▲656

6,685 5,067

5,929 4,302

FY Mar/20192Q

FY Dec/20192Q

Effect of exchange rate change on cash and cash equivalents

Net increase in cash and cash equivalents

Cash and cash equivalents at end of period

Cash and cash equivalents at beginning of period

Cash flows from financing activities

Consolidated Statements of Cash Flows


17

❷ Management Policies for

FY Dec/ 2019


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Growth strategy implementation

schedule

FY2018 Activities: Growth strategy Imple--mentation schedule Benchmarks: [Resort] Channel development, improve profitability through structural reforms [Domestic] Improvement of wedding business

FY2019 Activities : Solidify growth strategy Benchmarks: [Resort] Increase share, enhance services to improve sales and profits[Domestic] Improve sales and profits byenhancing accommodations and reception parties

Price appeal to

improve unit price

FY2018 (End of

March 31, 2019)

FY2020(End of

Dec 31, 2020)

As of now

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Platform (sales/ manufacturing /operations)

FY2020 Activities : Complete growth strategy Phase 1 Values: [Resort] Complete structural reforms, engage in new domains, new markets [Domestic] Stabilize existing income, new development

Solidify growth strategy

Complete Growth strategy Phase 1

【Reference】 Medium-term Management Vision ~ Roadmap

FY2019 (End of

Dec 31, 2020)

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New areas Development

Service enhance--ments

Enhance weddings, accommodations and

reception parties

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Dra

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Un

ifica

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of s

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to

improve unit price

Va

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New areas development

Service enhance--ments

Enhance weddings, accommodations and

reception parties

Cre

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Un

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of

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Platform (sales/manufacturing)

Price appeal to

improve unit price

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New areasdevelopment

Services enhancements

Enhance weddings, accommodations, and

reception parties

Growth proposal

Platform (sales/ manufacturing /operations)

New hotels New hotels

Bridal platform building and alliance promotion- Toward a global company that creates and realizes diverse wedding styles -


Enhance Sales Channels

■ Full-year operation of both new and renovated chapels

■ Reorganize directly owned branches

Enhance Product Appeal

- Ko Olina Chapel Place of Joy (Hawaii)- Kouri Island Sky & Ocean Kyoukai (Okinawa)

■ Strengthen the lineup of ceremony related products such as travel, garments

and videos- Develop original plans packaging both wedding and travel services by incorporating a travel company into the group- Launch dress brands specializing in resort weddings

- Optimize directly owned branches nationwide (transfer, opening, etc.) based on area marketing

■ New sales channels- Strengthen the drawing power and sales activities of new sales channels (EC site, "Rizokon" Online Counter) that eliminate the need to visit stores

■ Expand owned media

■ Photo business

Growth Strategy

- Aim to build a customer-attracting platform and expand owned media (Hawaii Lovers, REZOCO, new portal site, etc.) for enhancing brand value and acquiring new revenue stream

■ Overseas expansion- Accelerate overseas expansion mainly in Asia and Oceania regions such as Da Nang and South Korea and strengthen the sales of "Rizokon" products for customers other than Japanese people

- Open a photo-specialized portal site and draw customers to our photo service expanding in and outside Japan

Specific Measures to be Implemented in Resort Weddings in FY2019 ended Dec 31


Meguro Gajoen（ HOTEL GAJYOEN

TOKYO ）

MIELPARQUE

Related Businesses and Others

Specific Measures to be Implemented in Hotel and Domestic Weddings ,and Related Businesses Weddings in FY2019 ended Dec 31

■Promote brand value on the theme of “A MUSEUM HOTEL of JAPAN BEAUTY”

- Propose Japan beauty at the forefront and differentiate itself from other

hotels, further enhancing the profits in weddings and accommodations

- Increase ratio of foreign travelers by taking measures such as renovating

Japanese-style guest rooms and installing beds for Europeans and Americans

■Stabilize accommodations and strengthen photo business

■ Promote building a platform through integrating group's back-office departments

■ Promote new personnel system and implement work style reform

- Improve average price per room and occupancy rate by controlling yields

- Enhance services in the photo business (photo studio) with the aim of

increasing the number of photo weddings and anniversary photos used

21

❸ Business Activities


Hawaii Ko Olina : Ko Olina Chapel Place of JoyOpening: October 17, 2018

Unique On-the-Beach Chapel Located on Royal Resort Land

“Ko Olina Chapel Place of Joy” to opened in October 2018 following renovations.

- Reborn into a more brilliant and pure white chapel and a banquet hall with glass windows for a full ocean view -

Hawaii : Facility renovatedResort

Wedding business


【Okinawa・Main Island】Kouri Island Sky & Ocean Kyoukai Opening & Taking reservations：From July 16, 2018

Okinawa : New Facility Opens

Creating a new iconic wedding venue on an isolated island

that can be accessed by car from the main island

“Kouri Island Sky&Ocean Kyoukai” to open in July 2018

- Located on a romantic island once called “island of love” -

ResortWedding business


Miyako Island : New Facility Opens

Creating new venue in “THE SHIGIRA” a refined resort for adults

“SHIGIRA MIRAGE BAYSIDE CHAPEL” to open in April 2019

- A detached home banquet with terrace and unique chapel filled with a private atmosphere -

【Miyako Island】 “SHIGIRA MIRAGE BAYSIDE CHAPEL”Operation start date: April 1, 2019



Facility Re-branding and new venues

Renewal of interior of facilities in core areas, creating any new garden venues

- Enhancing the product lineup and raising product’s value -

【Ko Olina,Hawaii】Ko Olina Aqua Marina（Chapel Wedding）

【Cairns, Australia 】Hilton Blue Horizon Chapel

Opening: January 5, 2020Opening: February 1, 2020Opening: February 1, 2020

Opening: July 1, 2019

【Tumon, Guam】Blue Aster 【Tumon, Guam】Luz de Amor Chapel


【 Ko Olina,Hawaii】Ko Olina Aqua Marina（Garden Wedding）

【Ko Olina,Hawaii】The Kahala Ocean Front Garden Wedding

Opening: January 2, 2020



New Area Developments Resort weddings business

Developed for the first time in Da Nang, Vietnam 2018, and started weddings in January 2019

Established a subsidiary in South Korea in April, and opened a specialist resort wedding salon in Beijing, Chugoku- Striving to tap into new markets by accelerating deployment in Asia as growth strategy-

Local branch: WATABE WEDDING Da Nang Branch

Opened : December 14, 2018

Location: C/O SKY hub Global Tour Lounge, ZEN

DIAMOND SUITES HOTEL DANANG 5F, 16 Ly

Thuong Kiet, Hai Chau,

<WATABE WEDDING Danan Branch >

Overseas subsidiaries: WATABE KOREA.CO., LTD.

Established: April 3, 2019

Location:5 F,142 Teheran-ro, Gangnam-gu, Seoul

<Exhibiting at local wedding events>

Local branch: WATABE WEDDING Beijing Branch

Opened: August 8, 2019

Location: Toru Misato SOHO 16F, No. 1, Kita Road

8, Artificial Sports Facility, Asahi-ku, Beijing City

<WATABE WEDDING Beijing Branch >



Enhance garments Business

Collaborate with famous icons and brands to reach new customer segments

Announced “WATABE WEDDING loves Barbie” “BEAMS DESIGN ” “ ELLE MARIAGE ”

- Propose clothing suited to various wedding styles, such as domestic wedding halls and hotels -

Bridal gowns Availability: From June 1, 2018

Tuxedo Availability: From June 1, 2018

Express Barbie's worldview

Wedding clothing

Bridal gowns Availability: From August 11, 2018

Tuxedo Availability: From July 28, 2018

“BEAMS DESIGN”“WATABE WEDDING loves Barbie”

In the popular select-shop BEAMS

Licensed brand-sponsored clothing

"ELLE MARIAGE"

Started wedding dress sales: June 1, 2019

Apparel 2 designs appeared from

the fashionable ELLE brand



Enhance garments Business

Realizing both the beauty and comfort of garments by considering the peculiarity of resorts

Announcement of new costume brands, Resoll Collection

- Clarify the value of our brands and aim for additionality and Improve unit price-

Start of sales: October 10, 2019

Resoll Collection's "Resoll" is a coined English-language "Resort" "all."In any situation in a resortTo make the bride beautiful and comfortableWe pursue designs that are full of functional beauty, calculated in detail.

"All for the Resort Wedding"

<Specialize “Rizokon” ’s Bridal gowns and Tuxedo WEB Site renewal opened >



Strengthening Video Business

・ PROPELLER USA, Inc. (Hawaii) June 2017 Grouping・ Propeller USA Ryukyu Co., Ltd. (Okinawa base) Established in April 2018

Responding to diverse customer needs for video products

Strengthening of video business in Hawaii and Okinawa and increase

in purchase rate of additional products contributed to sales- Added Hawaiian video production company with advanced technical capabilities

- to Group to improve our product quality -

- Propeller USA-Videography, editing, and video

creation for wedding ceremonies held by Japanese couples in Hawaii. Popular for their movie-like quality.

Established USA Ryukyu Propellers in Okinawa

<Air-taking video by drone>




Strengthening Travel Business

Strengthen the travel business by leveraging synergies with travel agencies' KnowhowStarted offering travel products exclusive to WATABE WEDDING

and achieved an increase in incidental ratio- The industry's first developed clothing storage box and delivery service for wedding in collaboration with JAL -

<JAL Wedding Dress BOX>

COMPACT SEEK Co., Ltd. Joined the Group in April, 2018

Travel industry registration: Tourism Agency Secretary

Registration No. 1898 (Type 1)

Address: Sagamiya 5th Bldg., 4th floor, 4-25 Ichibancho,

Chiyoda-ku, Tokyo


You can consult or apply at home.Strengthening sales channels

through online services in light of the expansion of the EC market

- Enhance product lineup and offer lifetime value propositions -

Online channel development

・ Rizokon Corporation

・ Honeypho

・ Anniversary marriage

(vou/renewal)

“"Rizokon" Online Counter” "EASY by WATABE WEDDING"

Opening date: November 1, 2018

(URL:https://www.watabe-wedding.co.jp/Shop/onlinecounter/)

Renewal opening date: December 1, 2018

(URL:https://www.watabe-wedding.co.jp/easy/)

• Completed online until application and

approval

• Casual product lineup

• Providing Provide the same high quality customer service as brick and mortar branches through a video chat format

• managed stores. The product lineup is same as directly

"youR STYLE"

Renewal opening date: late August 2019

(planned)

(URLhttps://yourstyle.net/rental/startinfo.html)

• EC site for rental of formal clothes for

attendants



In-house media development

Opened: June 28, 2018URL:http://wedelf.com

『WEDELF』

A website dedicated to weddings, originating in Singapore, providing unique venues, wedding-related information, and up-to-date information from local writers.

New free magazine for Hawaii area, which incorporates information on weddings and other topics, as well as local information on Hawaii's newest spots and how to spend time in the area

『Hawaii Lovers For Resort Wedding』

Founding issue: April 1, 2018Number of issues: 4 times a year(Issued on April, July, October, and January *1)

Circulation: Hawaii 0.1 million copies/Japan 50 thousand copies

Opening: June 20, 2019URL:https://wed-junbi.com/

A website that provides Knowhow needed to prepare for proposals and weddings.

Wedding Preparation.com

Strengthen owned media development to boost ad sales and secure new revenueContribute to further customer reach and increase brand recognition- Deliver fresh information for weddings and resorts to increase added value -



You can consult or apply at home.Strengthening sales channels

through online services in light of the expansion of the EC market

- Enhance product lineup and offer lifetime value propositions -

Online channel development

・ Rizokon Corporation

・ Honeypho

・ Anniversary marriage

(vou/renewal)

“"Rizokon" Online Counter” "EASY by WATABE WEDDING"

Opening date: November 1, 2018

(URL:https://www.watabe-wedding.co.jp/Shop/onlinecounter/)

Renewal opening date: December 1, 2018

(URL:https://www.watabe-wedding.co.jp/easy/)

• Completed online until application and

approval

• Casual product lineup

• Providing Provide the same high quality customer service as brick and mortar branches through a video chat format

• managed stores. The product lineup is same as directly

"youR STYLE"

Renewal opening date: late August 2019

(planned)

(URLhttps://yourstyle.net/rental/startinfo.html)

• EC site for rental of formal clothes for

attendants



Opening of Photo Studio

“WATABE WEDDING Kyoto Photo Studio” opened in April

Renewal of “ WATABE WEDDING Tokyo Meguro Photo Studio “ opened in October

- Responding to the Growing Demand for Photography and Enhancing Studio Facilities-

Photo Studio: WATABE WEDDING Kyoto Photo StudioOpened: April 1, 2019Address: 2F, 361 Okakuen-cho, Demizuagaru, Karasumadori, Kamigyo-ku, Kyoto

Photo studio: WATABE WEDDING Tokyo Meguro Photo StudioOpened: October 1, 2019Address: ARCO SQUERE 103 Block, 4-5-10 Kami-Osaki, Shinagawa-ku, Tokyo



Opened website exclusively for wedding photos

The Website “Ushers-photo “ dedicated to wedding photo

opened in September, which can be achieved brides wishes

- Introducing the Attractiveness of Diverse Wedding Photos and Proposing Products-

Resort wededings business

“Ushers-photo”

Opened: September 25, 2019

URL:https://www.ushers-photo.com/


Introduction of New Personnel System in WATABE WEDDING

Diversify “work style” and “career development”

Aiming at “a great company to work for” through introduction of new personnel system

Evaluation

- Treatment of specialists

Utilize veterans- Abolish position age limit system- Build a scheme to reemploy workers after their retirement

Paid leave

- Available on an hourly basis

Build an environment where employees can play an active part regardless of age, experience and working environment, leading to the enhancement of business value

- Childcare leave period for regular employeesLaws and regulations require one year, but our company offers three years- Shorter working hoursLaws and regulations require approving the application before children become three years old, but our company offers the system before nine years old

- Full-time work promotion systemHelp employees with childcare expenses if they work on a full-time basis during the periods when shorter working hours are available* The purpose of use is left to employees, including baby-sitter and homemaker service

- Spot extension work promotion systemSupport part of the extension fee for a nursery school if employees work overtime on a spot basis during the periods when shorter

working hours are applied

- Flexible work system (moving up or down opening/closing time)

Prescribed working hours per day do not change, but opening time and closing time can be moved up or down from prescribed time* All employees excluding those working in customer relations departments are covered

＋

【Existing system】

Childcare support

* We are already implementing the above system that exceeds the stipulations of laws and regulations

Resort weddings business


WATABE WEDDING Sustainability Activities

Initiatives Related to SDGs to Achieve a Sustainable Society

With the aim of contributing to regional revitalization in remote islands, we propose a wedding plan called Kodakashima DIY Wedding that utilizes the entire Kodakashima area in Nagasaki Prefecture and Gojima Islands, and we commercialize it.

11th goal"Creating a Town That Can Continue to Live"

Collaborated with “WELEDA”, an organic cosmetics brand, to create an original package of “Adelweis UV Protect 50ml”, a sunscreen cream that contains no harmful ingredients on coral reefs, incorporating a coral reef protection message. In order to deliver this message to our customers, we are implementing a campaign to present them to new customers who have visited our stores since July.

14th goalProtecting the wealth of the sea

17th goal"Achieve goals through partnerships"

<Candidate for DIY Wedding wedding venue“Kaki no Hama Beach”> <Collaboration package>

Resort weddings business


Build a Platform for the Operations of Back-office Departments across Group Companies

Integrate the operations of back-office departments across group companies

Aim to build a platform for administrative operations, leading to an effective use of resources

- Achievement of know-how accumulation and expertise sophistication as well as their sharing -

Build a platform for group's back-office

departments(Know-how

accumulation and expertise sophistication as well as their sharing)

Enhance governance＋

Respond to diverse business expansions such as M&A

(Smooth integration with the group)

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Each group company holds administrative workforce and implements similar operations

Sales department

Salesdepartment

Sales department

Sales department

General affairs

General affairs

General affairs

General affairs

Accounting & finance




Human resource

Human resource

Human resource

Human resource

System System System System

【WATABE】【MIELPARQUE】【Gajoen】【Others】

Reorganize operations

Consider standardization

< Vision >

Operational integration of administrative departments

< Relationship among the departments of each company and shared company >

Others

Outsourcing of indirect departments(General affairs ・ Accounting & finance ・ Human resource ・ System)

Established a 100% investment subsidiary

for the entire IT-related business

Corporate name: "SUNITED"Establishment date: June 12, 2019


Remodeled to a design incorporating Japanese traditional craftsmanship

Scheduled to complete the renewal of Japanese-style guest rooms in July 2019

- Install beds while taking advantage of existing Japanese-style room designs, aiming to increase the use rate of inbound guests -

Hotel Gajoen Tokyo Japanese-style Room Renewal

Guest room renovation


6th floor, 12 rooms in total

Hotel and domestic weddings


Domestic wedding party venue renewal

“Lumimor”-Change to natural decoration incorporating trends

Reception hall “Lamer” renewal opening -April 2019 - Considering reception hall operation and utilizing it for other than weddings anticipation of redevelopment plan

for “Takeshiba-area” in Minato-ku -

Renewaled party venue “Lamer” in “Lumiamore”

Opening: April 2019

Number of guests: 40 to 120 seats, 150 standing meals

Concept: Flame of Forest and Sea

Address: New Pier Takeshiba North Tower 3F, 1-11-1, Kaigan, Minato-ku, Tokyo

※ Meguro Gajoen Production DivisionHotel and domestic weddings


A multi-purpose studio that meets diversified wedding photo needs

WATABE WEDDING has outsourced 10 HOTEL MIELPARQUE’s photo business

- Further expand our “Anniversary Photo” campaign to maximize customer lifetime value -

WATABE WEDDING Yokohama Bay Photo Studio WATABE WEDDING Tokyo Shibakoen Photo Studio

- WATABE WEDDING Sendai Photo Studio (in HOTEL MIELPARQUE SENDAI)

- WATABE WEDDING Nagano Photo Studio

- WATABE WEDDING Nagoya Photo Studio (in HOTEL MIELPARQUE NAGOYA)

- WATABE WEDDING Osaka Photo Studio

- WATABE WEDDING Okayama Photo Studio

- WATABE WEDDING Hiroshima Photo Studio

- WATABE WEDDING Matsuyama Photo Studio

- WATABE WEDDING Kumamoto Photo Studio

- WATABE WEDDING Yokohama Bay Photo Studio

- WATABE WEDDING Tokyo Shibakoen Photo Studio

MIELPARQUE Photo BusinessResort

weddings business

42

❹ FY 2019 ended Dec 31

Consolidated Performance

Forecast


+500

+70

Hotels Other

+810

Other

▲109

+170

+119

FY20183rd quarter

36,940

FY2019

39,000

+1,701+359

Travel Business

+500

※ Due to the change in the fiscal year-end, the figures for the 9 months from April - December are compared with the same period of the previous fiscal year.（Millions of yen）


Forecast of changes in Net Sales by Consolidated Business Segment

【Resort weddings】【Hotels and domestic weddings】


＜Net Sales＞

Increaseunit price

Weddings

＜Net Sales＞


FY2019

+300

+486

▲315

▲396

FY20183rd quarter

1,107

1,150

▲26

+75

▲26

※ Due to the change in the fiscal year-end, the figures for the 9 months from April - December are compared with the same period of the previous fiscal year.（Millions of yen）


Forecast of changes in Consolidated Segment Income

【Hotels and domestic

weddings】

【Resort weddings】

Increase unit price


Advertising and growth business investment

Foreign exchange ･Others

＜Operating income＞

＜Operating income＞


FY2018

3Q

<Results>

FY2019

<Forecast>

Net sales 36,940 39,000

Operating prof it 1,107 1,150

Ordinary prof it 1,210 1,200

Net Prof it attributable to owners of parent

715 700


※ Due to the change in the fiscal year-end, the figures for the 9 months from April - December are compared with the same period of the previous fiscal year.

FY 2019 ended Dec 31 Consolidated Performance Forecast

46

❺ Appendix

WATABE WEDDING Group Network 【Overseas】

France

Italy

Hong Kong

Vietnam

Singapore

Indonesia

Australia

China

Taiwan

Guam

Hawaii

Tahiti

North America

<Hawaii>

▪ Honolulu Branch

▪ Kona Branch▪ PROPELLER USA,INC.▪ Hawaii Lovers, Inc. Hawaii Branch▪ Lani Le’a Chapel ▪ Ko Olina Chapel Place of Joy▪ Ko Olina Chapel at Aqua Marina▪The Private Garden Aloha Ke Akua▪ The AKALĀ Chapel located at Hilton

Hawaiian Village Waikiki Beach Resort▪ The Banquet at Harbor Court ▪ Michel’s at the Colony Surf

<North America>▪ Las Vegas Branch

<Guam/Saipan>

▪ Guam Branch▪ Creative Studio Guam▪ St. Probus Holy Chapel▪ Blue Aster▪ Luz de Amor Chapel▪ Saipan Branch

<Tahiti>▪ Tahiti Branch

<France/Italy>▪ Paris Branch▪ Florence Branch

<China>▪ Shanghai Branch▪ Tuxedo Production Facility▪ Apparel Center▪ Photo Album Production Facility

<Vietnam>▪ Vietnam Wedding Dress Factory▪Da Nang Branch <South Korea>▪ WATABE KOREA.CO.,LTD.※Established in April

<Singapore>▪ CHIJMES Hall▪ Alcove at Caldwell House

<Taiwan>▪ Taiwan Branch

<Hong Kong>▪ Hong Kong Branch▪ W&D Products, LTD.

<Australia>

▪ Cairns Branch

▪ Sanctuary Cove Chapel▪ Alamanda Great Barrier Reef Chapel▪ Hilton Blue Horizon Chapel

<Indonesia>

▪ Bali Branch▪ ULU SHANTI

As of April. 1, 2019


Hokkaido

Tohoku

<Koshinetsu, Hokuriku area>

• Yamanashi

Kofu Lounge

• Niigata

▪ Niigata Branch

• Nagano

▪ Matsumoto Lounge

▪ Nagano Photo Studio

▪ HOTEL MIELPARQUE NAGANO

▪ KARUIZAWA CREEK GARDEN

• Ishikawa

▪ Kanazawa Branch

<Kansai area>

• Wakayama

▪ Wakayama Lounge

• Kyoto

▪ KYOTO-WAKON(Kyoto Branch)

• Kyoto photo Studio ※opened April

• Kyoto Shijo Branch

▪ Anniversary Salon

▪ Kyoto Okakuen

▪ MIELPARQUE KYOTO

▪ Product Center

▪ Head office

• Osaka

▪ Osaka Grand Plaza

▪ Osaka Photo Studio

▪ Shinsaibashi Branch

▪ HOTEL MIELPARQUE OSAKA

▪ CLASSICO WEDDING Osaka Salon

• Hyogo

▪ Kobe Sannomiya Branch

▪ Kobe Kitano Sassoon

<Tokai area>• Aichi▪ Nagoya Grand Plaza▪ Nagoya Photo Studio (in HOTEL MIELPARQUE

MAGOYA)

▪ Mei Eki Salon▪ Nagoya Sakae Salon▪ HOTEL MIELPARQUE MAGOYA

• Gifu• Gifu Lounge

• Shizuoka▪ Shizuoka Branch▪ Hamamatsu Lounge

<Chugoku area>• Hiroshima▪ Hiroshima Branch▪ Hiroshima Photo Studio ▪ HOTEL MIELPARQUE HIROSHIMA

• Okayama▪ Okayama Branch▪ Okayama Photo Studio▪ HOTEL MIELPARQUE OKAYAMA

<Hokkaido area>

• Hokkaido

▪ Sapporo Branch

▪ Sapporo Blanc Birch Chapel

<Tohoku area>

• Miyagi

▪ Sendai Branch

▪ HOTEL MIELPARQUE SENDAI

▪Sendai Photo Studio (in HOTEL MIELPARQUE

SENDAI )

<Kanto area>

• Tokyo

▪ Tokyo Grand Plaza

▪ Ginza Salon

▪ Shinjuku Grand Plaza

▪ Shinjuku Photo Studio

▪ PLATINUM BIRTHY Minami Aoyama Lounge

▪ Tokyo Meguro Photo Studio

▪ Tokyo Shibakoen Photo Studio

▪ Tachikawa Branch

▪ Felice Garden Hibiya

▪ HOTEL GAJOEN TOKYO

▪ Lumiamore

▪ HOTEL MIELPARQUE TOKYO

▪ Tokyo Office

▪ Hawaii Lovers Inc.

▪ COMPACT SEEK CO., LTD

▪ CLASSICO WEDDING Minami Aoyama Lounge

▪ CLASSICO WEDDING Ginza Salon

• Kanagawa

▪ Yokohama Grand Plaza

▪ Yokohama Bay Photo Studio

▪ Crystal Grace Chapel

▪ HOTEL MIELPARQUE YOKOHAMA

• Chiba

▪ Chiba Branch

• Saitama

▪ Omiya Branch

• Gunma

▪ Takasaki Branch

▪ Hotel Racine Shinmaebashi

• Tochigi

▪ Utsunomiya Branch

＜Shikoku are＞• Ehime▪ Matsuyama Branch▪ Matsuyama Photo Studio ▪ HOTEL MIELPARQUE MATSUYAMA

• Kagawa▪ Takamatsu Lounge

• Tokushima▪ Tokushima Lounge

WATABE WEDDING Group Network 【Domestic】

<Kyushu area>

• Fukuoka

▪ Fukuoka Branch

• Kumamoto

▪ Kumamoto Branch

▪ Kumamoto Photo Studio

▪ HOTEL MIELPARQUE KUMAMOTO

• Kagoshima

▪ Kagoshima Branch

<Okinawa>

▪ Naha Branch

▪ Kouri Island Sky&Ocean Kyoukai

▪ Aqualuce Chapel

▪ Aquagrace Chapel

▪ Coralvita Chapel

▪ Crudesur Chapel

▪ ALLAMANDA CHAPEL

▪ Erythrina Nishihara Hillsgarden

▪ Creative Studio Miyako

▪ The DREAM studio Yume Kobo

▪ Marine bijou

▪ Media Center

▪ Propeller USA Ryukyu Co., Ltd.

Kanto

Koshinetsu , Hokuriku

Tokai

Kansai

Chugoku

Kyusyu

Okinawa

Shikoku

As of September 30, 2019

49

This document is intended solely for use by WATABE WEDDING CORPORATION for the purposes of presentation.

①Distribution or use of this document outside of the Company, or

②disclosure, duplication, photocopy, or any action in relation to the content of this document should not occur

without the written and signed permission of WATABE WEDDING CORPORATION.

The forward-looking statements contained in this document are based upon targets and estimates and do not

constitute any guarantees or warrantees. When using this document, please be aware that actual results may

differ from forecasts.

WATABE WEDDING CORPORATION

<Contact numbers for institutional investors>

TEL: +81-3-3288-4149

FAX: +81-3-3288-7315

<Contact numbers for individual investors>

TEL: +81-75-778-4111

FAX: +81-75-778-4177

Contact Information

Copyright© 2019 WATABE WEDDING All Rights Reserved.

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