BUSINESS ENVIRONMENT

Since the 1972 peak of 1.1 million marriages (10.4%), the number of weddings in Japan declined each year, dipping below 800,000 couples in 1978 and thereafter, to around 700,000, as the marriage rate started to level off in 1987 at 5.7%. (*marriage rate indicates the number of marriages per 1,000 population, and is calculated by dividing the total number of marriages by the population and multiplying by 1000.)
The number of marriages in 2011 amounted to 700,214, a decline of 30,214 from the 2010 total of 670,000, with an estimated marriage rate of 5.3% compared with 5.5% in 2010.
While the number of marriages has shown a downward trend over the long term, this has eased somewhat and there has been no noticeable increase or decrease since 2005.
At the same time, the number of divorces in 2011 is estimated to decrease by 16,378 from 251,378, the previous year's total, to 235,000*.

The “guest house wedding” style provided by our Group has been well received by the market, and prompted existing hotels and ceremony hall operators to offer similar services, and with the provision of a range of new services to counter our style of weddings, competition is set to intensify. This will likely be further heightened by new service providers entering the market. However, consumer interest in the kind of ceremonies and banquets provided by our guest house wedding services is expected to continue to grow.

The comprehensive wedding service our Group provides has earned the approval of numerous newlywed couples, their relatives and guests, with everyone appreciating the emphasis on individuality over traditional form. Moving forward, we believe that by continuing to provide the highest level of value-added services, we will further attract and meet this demand.

* Note: Annual estimate provided by 2011 Ministry of Health, Labour and Welfare report on vital statistics released January 1, 2012