Member of the Financial Accounting Standards Foundation

Consolidated Financial Statements for Third Quarter Ended September 20, 2010
[Japanese standard] (Consolidated)
September 30, 2010
Name of registrant: Milbon Co., Ltd.
(First Section of the Tokyo Stock Exchange)
Code Number:
4919(URL: http://www.milbon.co.jp)
Representative:
Ryuji Sato, President
Officer in Charge of Contact: Masahiro Murai, Managing Director
TEL: (06) 6928-2331
Scheduled filing date for quarterly report: October 22, 2010
Scheduled start date for payment of dividends: Creation of supplementary materials for the quarterly financial statements (Yes/ No): Yes
Holding of a briefing on the quarterly financial statements (Yes/ No): No(Amounts of less than one million yen are rounded off.)

1. Consolidated financial results for third quarter ended September 20, 2010 (December 21, 2009 – September 20,
2010)(1) Consolidated Operating Results (Accumulative)(”%” indicates the increase or decrease against the same quarter in the previous fiscal year.)Net sales

Operating income

Ordinary income

Net income

million yen%

million yen%

million yen%

million yen%

Third quarter ended
September 20, 2010

14,345

1.5

2,770

18.7

2,601

18.2

1,523

28.8

Third quarter ended
September 20, 2009

14,128

-

2,333

-

2,200

-

1,183

-

Quarterly net income
per share

Quarterly diluted
earnings per share

yen

yen

Third quarter ended
September 20, 2010

121.59-

Third quarter ended
September 20, 2009

94.42

-

(2) Consolidated Financial Conditions

million yen

million yen

Equity ratio (Ratio of
equity to total assets)%

20,392

17,40685.4

1,388.83

20,353

16,65381.8

1,328.80

Total Assets

Third quarter ended
September 20, 2010
Year ended December 20, 2009
(Reference) Equity capitalyen

Net assets

Net asset per shareyen

Third quarter ended September 20, 2010, 17,406 million yen; fiscal year ended December 20, 2009, 16,653 million

2. Payment of Dividends
End of 1st quarter
yen
-

nd

End of 2 quarter
yen
27.00
27.00

Year ended December 20, 2009
Year ended December 20, 2010
Year ended December 20, 2010
(forecast)
Note: changes to dividends forecast for the current quarter: None

Annual dividends
End of 3rd quarteryen-

End of fiscal year
yen
28.00

-

28.00

Total
yen
55.00

55.00

Milbon Co., Ltd.

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Consolidated Financial Statements for Third Quarter Ended September 20, 2010

3. Consolidated Financial Results Forecast for the Year Ending December 20, 2010 (December 21, 2009 – December
20, 2010)(”%” indicates the increase or decrease in comparison with the “Full year” in the previous fiscal year.)

Sales

Operating income

million yen%
million yen
Full year
19,8603.5
3,620
Note: changes to results forecasts for the current quarter: None%
10.4

Ordinary income
million yen
3,370

%
8.6

Net income
million yen
1,910

%
7.0

Net income
per shareyen
152.404. Others (For details, please refer to (Attached materials) p.4 “2. Other information”.)(1) Transfer of significant subsidiaries during the quarter: None
New: ___companies (Names:), Excluded companies ___ Names:()(Note) This means whether or not there were any transfers of specified companies entailing a change in thescope of consolidation during the quarterly accounting period under review.
(2) Application of simplified accounting methods and specific accounting methods: Yes(Note) This means whether or not there was any application of simplified accounting methods and accounting
methods specific to the preparation of quarterly consolidated financial statements.
(3) Changes in accounting policies, procedures, and methods of presentation
1) Changes due to amendment to the accounting standards, etc.; None
2) Changes other than those in 1) above; None
(Note) This means whether or not there were any changes in the accounting policies, procedures, and methodsof presentation related to the preparation of quarterly consolidated financial statements to be includedin the “Summary of Significant Accounting Policies for the Preparation of Quarterly Consolidated
Financial Statements”.
(4) Number of shares outstanding (common shares)
1) Number of shares outstanding at term-end (including treasury stock)
Third quarter ended September 20, 2010, 12,544,408 shares; Year ended December 20, 2009, 12,544,408
shares2) Number of treasury shares at term-end
Third quarter ended September 20, 2010, 11,549 shares; Year ended December 20, 2009, 11,617 shares
3) Average number of shares through accounting period (quarterly cumulative total)
Third quarter ended September 20, 2010, 12,532,839 shares; Third quarter ended September 20, 2009,
12,532,959 shares* Display of the state of implementation of quarterly review procedures⋅ These quarterly consolidated financial statements are not subject to quarterly review procedures based on the Financial
Instruments and Exchange Act and at the time of public disclosure of these quarterly consolidated financial statements, thereview procedures for quarterly financial statements based on the Financial Instruments and Exchange Act have not been
completed.

* Proper use of earnings forecast and other matters⋅ Statements about the future such as the earnings forecast shown here are based on information currently held by theCompany and on assumptions that the Company considers reasonable. Actual earnings may differ materially from theearnings forecast due to various factors. For notes, etc., on the assumptions for earnings forecasts and the use of earnings
forecasts, please refer to sub-section “3. Qualitative information on consolidated earnings forecast” in section “1. Qualitative
information on the consolidated earnings for this quarter” on p.4 of the Consolidated Financial Statements for Third Quarter
Ended September 20, 2010 (Attached materials).

Milbon Co., Ltd.

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Consolidated Financial Statements for Third Quarter Ended September 20, 2010

Contents of the attached materials
1. Qualitative information on the consolidated earnings for this quarter ··························································· 2(1) Qualitative information on consolidated operating results ·································································· 2(2) Qualitative information on consolidated financial conditions ····························································· 3(3) Qualitative information on consolidated earnings forecast ································································· 4
2. Other information··········································································································································· 4(1) Overview of transfers of significant subsidiaries ················································································ 4(2) Overview of simplified accounting methods and specific accounting methods ·································· 4(3) Overview of changes in accounting policies, procedures, and methods of presentation ····················· 4(4) Overview of key events with regard to the premise of the company as an ongoing concern ······· 4
3. Quarterly Financial Statements ······················································································································ 5(1) Third Quarter Balance Sheet ··············································································································· 5(2) Third Quarter Consolidated Statement of Earnings ············································································· 7[3rd quarter consolidated accumulative fiscal period] ········································································ 7[3rd quarter consolidated fiscal period]······························································································· 8(3) [Quarterly Consolidated Statement of Cash Flows] ············································································ 9(4) Notes concerning the assumption of the business as a going concern ················································11(5) Notes in cases of extreme variation in the amount of shareholders’ equity ········································11-1-Milbon Co., Ltd.

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Consolidated Financial Statements for Third Quarter Ended September 20, 2010

1. [Qualitative information on the consolidated earnings for this quarter](1) Qualitative information on consolidated operating results
During the third quarter consolidated accounting period under review, the Japanese economy saw signs of agentle recovery backed up by economic stimulus measures in Japan and overseas and a recovery in demand fromnewly-emerging economies. However, even though a partial recovery was apparent in personal consumption
trends, the difficult personal consumption situation remained because of factors including the economy’s weakability to make a self-sustained recovery, the difficult employment situation, the guarded facility investment
situation, and concerns over the strong yen and deflation, etc.
In the beauty industry too, it is estimated that the difficult environment continued due to a decrease in customer
visits brought on by a slowing down in the cycle of customer visits to beauty salons and a decrease in spending per
customer, as well as the impact of factors such as the declining birthrate, aging society and changes in demographic
trends.
Under these circumstances, the Milbon Group has continued to promote activities under a basic policy of
supporting the “training of professionals with composite presentation skills and the ability to make sales” in order tocreate hair design that helps realize the “desired female image”. Above all things, because sales of hair careproducts with strong treatment effects and coloring agents for gray hair aimed at relieving concerns associated withaging among women, particularly the second-generation baby-boomers who are the core customers of the beautysalon industry, have performed well, the Group as a whole exceeded last year’s sales performance for the same
period.
At MILBON USA, Inc., a wholly-owned subsidiary, sales of LISCIO, the permanent straight hair agent andhair-care products for maintenance, which have accounted for the core of its sales, are continuing to fall as a resultof increasing competition in the United States permanent straight hair products sector. Although the company
started to work on marketing activities centered on the proposals of treatment menus to beauty salons, this was
unable to absorb the decrease in sales of permanent straight hair agent related products, resulting in decreased sales
against the same period of the previous year.
Milbon Trading (Shanghai) Co., Ltd., a wholly-owned subsidiary that began operating in February 2009, haspromoted the development of new outlets for Milbon products by the development of sales activities focused on top
salons that have acquired high-end customers in the eastern China region (Shanghai City, Jiangsu Province andZhejiang Province) and the southern China region (Guangdong Province, Fujian Province). In addition, sales
performed well due to the positive promotion of proposal activities such as comprehensive hair design and salon
menu triggered by the start of the sale of the permanent wave products.
Milbon Korea Co., Ltd., a wholly-owned subsidiary that began operating in December 2009, worked proactively
to develop color education activities at individual beauty salons and company-owned training studios aiming fordifferentiation from competitors. As a result, sales performed well thanks to a significant increase in the numberof salons that have introduced hair color products and the acceleration of the introduction of color-related products
centered on salon treatment menus.
Despite the difficult environment, consolidated sales in the third quarter consolidated accumulative fiscal period
under review increased 216 million yen to 14,345 million yen (1.5% increase compared to the same period in theprevious year).
Operating income reached 2,770 million yen (18.7% increase compared to the same period in the previous year),ordinary income was 2,601 million yen (18.2% increase compared to the same period in the previous year) andquarterly net income was 1,523 million yen (28.8% increase compared to the same period in the previous year).
Breakdown of sales by product category is shown as follows:[Breakdown of consolidated sales by product category]
Product Category

3rd Quarter , consolidated
accumulative fiscal period in theprevious year

Current 3rd Quarter consolidated
accumulative fiscal period

Sales amount(million yen)

Sales amount(million yen)

Ratio (%)

Increase/decrease
Sales amount(million yen)

Ratio (%)

Permanent wave products

1,527

10.8

1,514

10.6

-12

Hair care products

7,180

50.8

7,309

51.0

129

Hair coloring products

5,210

36.9

5,314

37.0

103

Others

210

1.5

206

1.4

-3

Total

14,128100.0

14,345

100.0

216

-2-

Milbon Co., Ltd.

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Consolidated Financial Statements for Third Quarter Ended September 20, 2010

(Permanent wave products)
It is estimated that the industry as a whole contracted as a result of a declining frequency in the use of permanent
wave products under the impact of stagnant economic conditions and a decrease in the permanent agent ratio due tochanges in trends, etc.
Under these circumstances, the Milbon Group made efforts to arouse demand for permanent agents using thestraight perm product LISCIO GLANFE, launched in April, which expresses a soft silhouette with a sense of“roundness” matched to different hair types and the perm agent LIFUME, launched in June, a product based on a
totally new concept that controls the volume of hair that decreases with age. However, in the permanent wave
products sector as a whole, sales fell against the same period in the previous year.
(Hair care products)
Competition with hair care products for the public market and the products sold exclusively to beauty salons in
the pro-use market has become increasingly severe. In this environment, it is estimated that the industry as awhole expanded slightly as a result of hair care initiatives, particularly salon treatment menus for repairing damaged
hair.
Under these circumstances, the Milbon Group saw improved sales against the same period in the previous year
in the hair care products sector as a whole thanks to positive sales of DEESSE’S APROU, a treatment that cannot
be washed out and which was launched in March for women suffering from dry hair and declining “bounce” as aresult of ageing, and the fact that sales of salon treatment agents aimed at relieving customers’ hair concerns,
centered on INPHENOM DAILY CARE, which Milbon launched in July last year, grew steadily.
(Hair coloring products)
It is estimated that the size of the industry as a whole is in a declining trend as a result of a decrease in customer
numbers brought on by a slowing down in the cycle of visits to salons due to prevailing attitudes among consumersof a need to protect livelihoods and save money, as well as increasing competition from public market products thatallow easy treatment at home.
Under these circumstances, the Milbon Group made efforts to develop nationwide seminars aimed at improving
hair designers’ hair coloring techniques and presentation skills with a view to expansion in the gray hair dyeing
market, and also made efforts in proposal activities for seasonal colors for customers (colors for each season
matched to fashions). As a result, the growth in sales of LISEINTER, which dyes gray hair firmly with colors thesame as fashion colors and of FARGLAN, which dyes gray hair without placing a burden on damaged hair, led toincreased sales against the same period in the previous year in the hair coloring products sector as a whole.
(Others)
There are no particular items to present.
(2) Qualitative information on consolidated financial conditions
1) Assets, liabilities and net assets
Total assets at the end of the 3rd quarter consolidated fiscal period increased by 38 million yen to 20,392
million yen compared to the end of the previous consolidated fiscal year.
Current assets increased 175 million yen against the end of the previous consolidated fiscal year to 7,163
million yen. The major variable factors were an increase of 229 million yen in cash and bank deposits, anincrease of 198 million yen in merchandise and products and an increase of 103 million yen in raw materials
and inventory goods, although trade notes and accounts receivable decreased by 370 million yen.
Fixed assets fell 137 million yen against the end of the previous consolidated fiscal year to 13,228 million
yen. The major variable factors were a decrease of 700 million yen due to the posting of depreciation andamortization expense, an increase of 746 million yen due to the acquisition of assets such as the expansion andrefurbishment of Tokyo Branch, etc., and a decrease of 127 million yen in investment securities.
Current liabilities decreased 711 million yen against the end of the previous consolidated fiscal year to 2,534
million yen. The major variable factors were a decrease of 438 million yen in notes and accounts payable, adecrease of 393 million yen in accrued expenses payable, and an increase in 202 million yen in the reserve forbonuses.
Fixed liabilities did not change significantly against the end of the previous consolidated fiscal year.
Net assets increased 752 million yen against the end of the previous consolidated fiscal year to 17,406
million yen. The major variable factors were an increase of 834 million yen in retained earnings and adecrease in net unrealized gains on other securities of 70 million yen due to the stagnation of the stock market.
As a result, the company’s equity ratio fell to 85.4% from 81.8% at the end of the previous consolidated fiscal-3-

Milbon Co., Ltd.

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Consolidated Financial Statements for Third Quarter Ended September 20, 2010

year. Net assets per share based on total outstanding shares as of the end of the accounting period rose to1,388.83 yen per share, compared to 1,328.80 yen per share at the end of the previous fiscal consolidated year.
2) Cash flows
The balance of cash and cash equivalents (hereinafter “Funds”) at the end of the 3rd quarter consolidated
accounting period under review increased 228 million yen against the end of the previous consolidated fiscal
year to 1,895 million yen after using funds procured as a result of operating activities in the payment ofcorporate and other taxes and the payment of dividends, etc.
(Cash Flows from Operating Activities)
Funds procured as a result of operating activities were 1,559 million yen. This was mainly the result of
2,581 million yen recorded in net income before taxes and other adjustments, depreciation and amortization
expense of 700 million yen and payment of corporate and other taxes of 1,162 million yen.
(Cash Flows from Investing Activities)
Funds used for investing activities were 645 million yen. Major factors included 582 million yen used in
the acquisition of tangible fixed assets, 167 million yen used in the acquisition of intangible fixed assets, andincome of 116 million yen as a result of the cancellation of insurance reserve funds.
(Cash Flows from Financing Activities)
Funds used as the result of financing activities were 684 million yen. The Funds mainly consisted of 684
million yen of dividend payment to shareholders.
(3) Qualitative information on consolidated earnings forecast
The consolidated earnings forecast for the year as a whole has not changed since the previous forecast(announced on June 25, 2010).
2. Other information(1) Overview of transfers of significant subsidiaries during the periodNone(2) Overview of simplified accounting methods and specific accounting methods
1) Simplified accounting methods(Valuation methods for inventories)
The calculation of inventories at the end of the 3rd quarter consolidated fiscal period is calculated byomitting a physical inspection and using a rational method of calculation based upon the physicalinspection amount for the end of the previous consolidated fiscal year.
(Calculation methods for depreciation expenses for fixed assets)
Fixed assets using a fixed percentage depreciation method are calculated by dividing the amount ofdepreciation expenses for the consolidated fiscal year proportionally between the respective accounting
periods.
2) Accounting methods specific to the preparation of quarterly consolidated financial statements
None(3) Overview of changes in accounting policies, procedures, and methods of presentation
None(4) Overview of key events with regard to the premise of the company as an ongoing concern
None

-4-

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Consolidated Financial Statements for Third Quarter Ended September 20, 2010

3. Quarterly Financial Statements(1) Third Quarter Balance Sheet(Unit: thousand yen)
End of 3rd quarter consolidated fiscal
period under review(as of September 20, 2010)

Condensed consolidated balance sheet
at the end of the previous consolidated
fiscal year
(as of December 20, 2009)

Cash and bank deposits

1,896,118

1,666,170

Trade notes and accounts receivable

2,434,258
1,845,295
24,887603,718
367,222-7,776
7,163,724

2,804,683
1,646,427
17,417499,852
362,286-9,017
6,987,821

3,408,629

3,627,958

1,055,250

1,306,380

4,763,766
1,094,672
250,305
10,572,624
411,050

4,763,766
709,139
233,024
10,640,269
318,593

1,180,275
1,101,590-36,669
2,245,196
13,228,872
20,392,596

1,307,670
1,164,694-65,160
2,407,204
13,366,068
20,353,890

514,664
976,894
467,167
13,984
264,841
297,4252,534,978953,356
1,370,388
571,930
31,72062,685
256,617
3,246,698

39,000412,563451,5632,986,541

39,000414,633
453,633
3,700,331

AssetsCurrent assets

Merchandise and products
In-process
Raw materials and inventory goods
OthersLoan loss reserves
Total current assets
Fixed assets
Tangible fixed assets
Buildings and other structures (net amount)
Machinery, equipment and vehicles fortransportation (net amount)
Land
Construction in progress
Others (net amount)
Total tangible fixed assets
Intangible fixed assets
Investments and other assets
Investment in securities
OthersLoan loss reserves
Total investments and other assets
Total fixed assets
Total assets
Liabilities
Current Liabilities
Notes and accounts payable
Accounts payable
Accrued expenses payable
Corporate taxes payable
Reserve for returned goods
Reserve for bonuses
OthersTotal current liabilities
Fixed Liabilities
Reserve for loss on guarantees
OthersTotal fixed liabilities
Total liabilities-5-Milbon Co., Ltd.

(4919)

Consolidated Financial Statements for Third Quarter Ended September 20, 2010

(Unit: thousand yen)
End of 3 quarter consolidated fiscal
period under review(as of September 20, 2010)

Condensed consolidated balance sheet
at the end of the previous consolidated
fiscal year
(as of December 20, 2009)

2,000,000
199,120
15,472,337-38,234
17,633,222

2,000,000
199,120
14,637,996-38,572
16,798,543-141,989-85,178-227,167
17,406,055
20,392,596-71,571-73,412-144,984
16,653,559
20,353,890

rd

Net Assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Net unrealized gains on other securities
Foreign currency translation adjustments
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets-6-

Milbon Co., Ltd.

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Consolidated Financial Statements for Third Quarter Ended September 20, 2010

(2) Third Quarter Consolidated Statement of Earnings[3rd quarter consolidated accumulative fiscal period](Unit: thousand yen)Previous 3rd quarter consolidated
accumulative fiscal period(December 21, 2008 –September 20, 2009)

3rd quarter consolidated accumulative
fiscal period under review(December 21, 2009 –September 20, 2010)

Cost of Products/Merchandise Sold

14,128,162
5,131,452

14,345,031
4,803,155

Total sales revenues

8,996,710

9,541,875

Selling, General and Administrative Expenses

6,663,031
2,333,678

6,771,603
2,770,272

2,329
14,322
24,84927,52024,81013,074
106,906

1,041
21,6691,287
30,992
26,57915,00996,580679
239,318304
240,3032,200,282

249,376
15,780265,156
2,601,696

887
15,00015,887

91
4,384
4,475

606
83,67527,972
21,760134,015
2,082,154
990,88479
16,502
8,272
24,854
2,581,318
1,072,239-92,083-14,762

898,801
1,183,352

1,057,476
1,523,841

Sales

Operating income
Non-operating Income
Interest income
Dividends income
Gain on sale of investment securities
Rent from company housing
Bounty for corporate location
Profit on surrender of insurance
OthersTotal non-operating income
Non-operating Expenses
Interest expense
Sales discount
OthersTotal non-operating expenses
Ordinary income
Extraordinary Profit
Gain on sale of fixed assets
Release of loan loss reserves
Total extraordinary profits
Extraordinary Loss
Loss on sale of fixed assets
Loss on retirement of fixed assets
Loss on revaluation of investments in securities
Provision for doubtful accounts
Factory relocation expenses
Total extraordinary losses
Net income before taxes and other adjustments
Corporate, inhabitant and enterprise taxes
Adjustment for difference of tax allocation
between financial accounting and tax accounting
Total corporate and other taxes
Quarterly net income-7-Milbon Co., Ltd.

(4919)

Consolidated Financial Statements for Third Quarter Ended September 20, 2010

[3rd quarter consolidated fiscal period](Unit: thousand yen)Previous 3rd quarter consolidated
fiscal period(June 21, 2009 – September 20, 2009)

3rd quarter consolidated fiscal period
under review(June 21, 2010 – September 20, 2010)

Cost of Products/Merchandise Sold

4,738,788
1,812,278

4,914,138
1,613,452

Total sales revenues

2,926,509

3,300,686

Selling, General and Administrative Expenses

2,285,327
641,1822,256,298
1,044,388

599
12,453
8,638-3,952
17,738369
16,68910,843815
28,718295
85,401
297
85,994572,926

88,8872,512
91,399981,706

-

4
974
978

39,40627,972
21,76089,139483,786
275,155

3,013
8,272
11,285
971,399
440,890-61,979-55,312213,175
270,611385,578585,821

Sales

Operating income
Non-operating Income
Interest income
Dividends income
Rent from company housing
OthersTotal non-operating income
Non-operating Expenses
Interest expense
Sales discount
OthersTotal non-operating expenses
Ordinary income
Extraordinary Profit
Gain on sale of fixed assets
Release of loan loss reserves
Total extraordinary profits
Extraordinary Loss
Loss on sale of fixed assets
Loss on revaluation of investments in securities
Provision for doubtful accounts
Factory relocation expenses
Total extraordinary losses
Net income before taxes and other adjustments
Corporate, inhabitant and enterprise taxes
Adjustment for difference of tax allocation
between financial accounting and tax accounting
Total corporate and other taxes
Quarterly net income-8-Milbon Co., Ltd.

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Consolidated Financial Statements for Third Quarter Ended September 20, 2010(3) [Quarterly Consolidated Statement of Cash Flows](Unit: thousand yen)Previous 3rd quarter consolidated
accumulative fiscal period(December 21, 2008 –September 20, 2009)

3rd quarter consolidated accumulative
fiscal period under review(December 21, 2009 –September 20, 2010)

Cash flows from operating activities
Quarterly net income before tax and income adjustment
Depreciation and amortization expense
Increase (decrease) in loan loss reserves
Increase (decrease) in the provision for bonuses
Increase (decrease) in provision for returned productadjustment
Increase (decrease) in allowance for retirement benefits
for employees
Decrease (increase) in the prepaid pension cost
Interest and dividends received
Interest paid
Foreign exchange loss (gain)
Loss (gain) on sale of investment securities
Loss (gain) on revaluation of investments in securities
Loss (gain) on sales of fixed assets
Loss from the sale/disposition of fixed assets
Decrease (increase) in accounts receivable – trade
Decrease (increase) in inventories
Increase (decrease) in accounts payable related to
procurement transactions
OthersSubtotalInterest and dividends received
Interest paid
Payment of retirement benefits for director
Payment of corporate and other taxes
Cash flows from operating activities

2,082,154
809,631
18,716
192,134

2,581,318
700,501-29,212202,180

2,112-17,735-

913

42,563-16,651
679
10,532-280
83,675301,082-15,982

32,488-22,711-1,537-1,2878,272-1216,502369,890-314,970

479,285-428,901-211,553
3,778,101
17,075-679-1,377,772
2,416,725-202,832
2,892,866
22,982-194,441-1,162,144
1,559,263-499,966
400,000-993,282
2,275

2,400
-582,608
3,846-109,989-167,256-41,11246,33048,337-35,745
7,093-8,22362,861-932-1,122,353-5,49017,393-1,093-64,963
42,020-3,974116,422-2,193-645,496

Cash flows from investing activities
Payment due to the purchase of investment securities
Sale of investment securities
Payment due to the acquisition of tangible fixed assets
Income from the sale of tangible fixed assets
Payment due to the acquisition of intangible fixed
assetsPayment due to loans
Collection of the loan payment
Expenditure due to deposit of fixed term deposits
Income from cancellation of fixed deposits
Payment due to the placement of guarantee money
Collection of guarantee money
Payment into insurance reserve fundCancellation/withdrawal from insurance reserve fund
OthersCash flows from investing activities-9-Milbon Co., Ltd.

(4919)

Consolidated Financial Statements for Third Quarter Ended September 20, 2010(3) [Quarterly Consolidated Statement of Cash Flows](Unit: thousand yen)Previous 3rd quarter consolidated
accumulative fiscal period(December 21, 2008 –September 20, 2009)

3rd quarter consolidated accumulative
fiscal period under review(December 21, 2009 –September 20, 2010)

Cash flows from financing activities
Payment due to the repayment of long-term borrowing
Net decrease (increase) in treasury stocks
Payment of dividends
Cash flows from financing activities
Effect of exchange rate fluctuations on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Outstanding balance of cash and cash equivalents at the
beginning of current term
Outstanding balance of cash and cash equivalents at endof current quarter- 10 --21,695-277-696,883-718,855

143-684,973-684,829-24,159-15

551,357

228,9211,010,784

1,666,170

1,562,141

1,895,092

Milbon Co., Ltd.

(4919)

Consolidated Financial Statements for Third Quarter Ended September 20, 2010

(4) Notes concerning the assumption of the business as a going concern
None(5) Notes in cases of extreme variation in the amount of shareholders’ equity
None- 11 -