Consolidated Financial Results for the Three Months Ended March 20, 2014
[Japanese GAAP]
March 28, 2014
Tokyo Stock Exchange, First Section

Name of registrant:
Milbon Co., Ltd.
Code No.:4919
URL http://www.milbon.co.jp
Representative:
Ryuji Sato, President and CEO
Inquiries:
Masahiro Murai, Managing Director
Scheduled filing date for quarterly report: April 25, 2014:
Scheduled starting date of dividend payments: Preparation of supplementary materials on the quarterly results: Yes
Holding of an explanatory meeting on the quarterly results: No

TEL: +81-6-6928-2331(Amounts of less than one million yen have been omitted)

1.

Consolidated financial results for the three months ended March 20, 2014 (December 21, 2013- March 20, 2014)(1) Consolidated operating results
Net sales
Million yen
Three months ended
March 20, 2014
Three month ended
March 20, 2013
(Note) Comprehensive income(Percentages show year-on-year changes)
Net income%
Million yen%%

Operating income
Million yen%

Ordinary income
Million yen

5,798

9.6

944

4.6

849

0.6

500

(2.3)

5,291

8.9

902

9.3

844

10.9

512

18.5

Three months ended March 20, 2014 : 565 million yen [(36.0)%]

Three months ended March 20, 2013: 882 million yen [75.9%]

Net income per share
Diluted net income per share
Yen
Yen
Three months ended
March 20, 2014
Three month ended
March 20, 2013

30.56

-

30.98

-

(Note) The Company conducted a 1.2 for 1 stock split of its common stock effective December 21, 2013. Consequently, the net income per share calculated andretrospectively adjusted assuming that the stock split was conducted at the beginning of the previous consolidated fiscal year is presented.
(2) Consolidated financial position
Total assets
As ofMarch 20, 2014
As ofDecember 20, 2013
(Reference)
EquityNet assets

Equity ratio

Million yen

Million yen%

25,65822,222

86.6

26,321

22,14984.1

As of March 20, 2014: 22,222 million yen

As of December 20, 2013: 22,149 million yen

2. Payment of dividends
Annual dividend
End of 1st quarter End of 2nd quarter End of 3rd quarter End of fiscal year
Yen
Year ended
December 20, 2013
Year ending
December 20, 2014
Year ending
December 20,
2014(forecast)(Note) Changes to latest dividends forecast: None

Yen

Yen

Total

Yen

Yen

33.00

-

35.00

68.00

34.00

-

34.00

68.00

3. Consolidated operating forecasts for the fiscal year ending December 20, 2014 (December 21, 2013 - December 20, 2014)(Percentages show year-on-year changes)
Net sales
Million yen
Year ending December 20, 2014

25,200(Note) Changes to latest performance forecasts: None

Operating income
Ordinary income% Million yen% Million yen
5.8

4,500

4.6

4,215

Net income% Million yen
3.8

2,600

%

Net income per share
Yen

3.3

158.74

*Notes(1) Significant changes in subsidiaries during the period(changes in specified subsidiaries accompanied by changes in the scope of consolidation) : None
New: 0 companies (Company name: )Exclude: 0 companies (Company name: )(2) Application of accounting methods specific to the preparation of quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatements
1) Changes in accounting policies due to amendment to theaccounting standards, etc.
: None2) Changes in accounting policies other than those in 1) above: None3) Changes in accounting estimates: None4) Retrospective restatements: None(4) Number of shares issued (common stock)1) Number of shares issued at the end of the period(including treasury stock)2) Number of treasury stock at the end of the period
3) Average number of shares during the period(cumulative)

Three months ended
March 20, 2014
Three months ended
March 20, 2014
Three months ended
March 20, 2014

16,558,617 shares
183,568 shares
16,376,028 sharesYear ended
December 20, 2013
Year ended
December 20, 2013
Three months ended
March 20, 2013

16,558,617 shares
179,953 shares
16,536,078 shares(Note) The Company conducted a 1.2 for 1 stock split of its common stock effective December 21, 2013. Consequently, the number of shares issued at
the end of the period, the number of treasury stock at the end of the period, and the average number of shares during the period calculated andretrospectively adjusted assuming that the stock split was conducted at the beginning of the previous consolidated fiscal year are presented.
*Indication of the status of execution of audit procedures
As these financial results are not subject to audit procedures pursuant to the Financial Instruments and Exchange Act, said audit procedures were notcompleted at the time of disclosure of this report.
*Explanation on the appropriate use of operating forecasts and other special instructions
Operating forecasts and other statements regarding the future presented in these materials are based on information currently available and certain
assumptions deemed to be reasonable, and actual performance may differ substantially due to various factors.

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2014

Contents of supplementary materials
1. Qualitative information on consolidated results for the current period .............................................................................................. 2(1)

Qualitative information on consolidated operating results ............................................................................................................. 2(2)

Qualitative information on consoldiated financial position............................................................................................................ 2(3)

Qualitative information on consolidated operating forecasts ......................................................................................................... 3

2. Summary information (Notes) ........................................................................................................................................................... 4(1)

Significant changes in subsidiaries during the period .................................................................................................................... 4(2)

Application of accounting methods specific to the preparation of quarterly consolidated financial statements............................. 4(3)

Changes in the accounting policies, changes in accounting estimates and retrospective restatements........................................... 4

3. Quarterly Consolidated Financial Statements ..................................................................................................................................... 5(1)

Quarterly Consolidated Balance Sheets ......................................................................................................................................... 5(2)

Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income ................................... 7(3)

Notes regarding going concern assumptions .................................................................................................................................. 9(4)

Segment information ...................................................................................................................................................................... 9(5)

Notes in case of any significant changes in shareholders’ equity................................................................................................... 9-1-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2014

1. Qualitative information on consolidated results for the current period(1) Qualitative information on consolidated operating results
During the three month period ended March 20, 2014, our nation’s economy was on a moderate recovery trend, as corporate
earnings improved and personal consumption picked up, as a result of the effects of the government’s economic measures.
Nevertheless, uncertainty over the future continued to prevail due to increasing concerns about the decelerating economies of theemerging nations, in addition to the consumption tax hike to take effect from April. In the beauty industry, despite the continuing
harsh business climate, there was an increase in the number of customers of our scalp- and hair-care services as well as customers
purchasing take home products at our partner salons.
Under such circumstances, the Milbon Group, fully aware of the importance of enhancing “intangible value” that centers on
communication to answer to the values of mature women, has been promoting initiatives intended for salons under the slogan of“Supporting the nurture of salon professionals with human appeal who will take the stage and live up to intrinsic, absolute value.”
Consolidated sales during the three month period ended March 20, 2014 increased to 5,798 million yen (up 9.6% year-on-year).
This was primarily due to the strong initial sales of Aujua Aging Care series Immurise line, which was launched in February inthe hair-care product category; and the strong sales of Ordeve Beaute, the product line specialized for gray hair in the hair coloringproduct category. Favorable sales growth of the overseas subsidiaries thanks to the proactive educational activities conducted in
the salons was another factor for the increase.
Operating income increased to 944 million yen (up 4.6% year-on-year); ordinary income increased to 849 million yen (up 0.6%
year-on-year); and net income was 500 million yen (down 2.3% year-on-year).

Breakdown of net sales by product category and breakdown of net sales into domestic and overseas sales are shown below:[Breakdown of consolidated net sales by product category]
Product Category(Unit: Million yen)Previous Consolidated
First Quarter
AmountRatio (%)

Current Consolidated
First Quarter
AmountRatio (%)

Year-on-year
Change (%)

Hair care products

2,671

50.5

3,099

53.5

427

16.0

Hair coloring products

2,230

42.1

2,268

39.1

38

1.7

Permanent wave products

343

6.5

379

6.5

36

10.6

Others

45

0.9

50

0.9

4

9.7

Total

5,291

100.0

5,798

100.0

507

9.6

[Breakdown of net sales into domestic and overseas sales](Unit: Million yen)Previous Consolidated
First Quarter
AmountRatio (%)

Current Consolidated
First Quarter
AmountRatio (%)

Increase(Decrease)
AmountYear-on-year
Change (%)

Domestic sales

4,914

92.9

5,203

89.7

288

5.9

Overseas sales

376

7.1

594

10.3

218

58.1

5,291

100.0

5,798

100.0

507

9.6

Total

(2)

Increase(Decrease)
AmountQualitative information on consolidated financial position
Total assets at the end of the three month period ended March 20, 2014 decreased by 663 million yen compared to the end of theprevious consolidated fiscal year to 25,658 million yen.
Current assets decreased by 810 million yen compared to the end of the previous consolidated fiscal year to 12,127 million yen.

-2-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2014

This was due mainly to the decrease in cash and deposits by 1,251 million yen; as well as the increases in merchandise andfinished goods and in raw materials and supplies by 293 million yen and 113 million yen, respectively.
Noncurrent assets increased by 146 million yen compared to the end of the previous consolidated fiscal year to 13,530 million
yen.
Current liabilities decreased by 700 million yen compared to the end of the previous consolidated fiscal year to 3,270 million
yen. This was due mainly to the decreases in accounts payable-other and in income taxes payable by 668 million yen and 572
million yen, respectively; in addition to the increases in accounts payable-trade and in provision for bonuses by 221 million yen
and 226 million yen, respectively.
There were no material changes in noncurrent liabilities from the end of the previous consolidated fiscal year.
Net assets increased by 72 million yen compared to the end of the previous consolidated fiscal year to 22,222 million yen. Thiswas due mainly to the 89 million yen increase in foreign currency translation adjustment due to the weakening yen.
As a result, equity ratio changed from 84.1% at the end of the previous consolidated fiscal year to 86.6%. Net assets per sharebased on total outstanding shares as of the end of the current consolidated fiscal year increased from 1,352.34 yen per share at
the end of the previous consolidated fiscal year to 1,357.07 yen per share.

(3)

Qualitative information on consolidated operating forecasts
In terms of the full-year forecast there are no changes to the previous consolidated performance forecasts, which were announced
on January 22, 2014.

-3-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 20142.

Summary information (Notes)(1)

Significant changes in subsidiaries during the period
None

(2)

Application of accounting methods specific to the preparation of quarterly consolidated financial statements
None

(3)

Changes in the accounting policies, changes in accounting estimates and retrospective restatements
None

-4-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 20143.

Quarterly Consolidated Financial Statements(1)

Quarterly Consolidated Balance Sheets
Previous Consolidated Fiscal Year(As of December 20, 2013)(Thousand yen)
Current Consolidated First Quarter(As of March 20, 2014)

6,845,649
3,110,419
1,987,133
21,957
607,585
420,934(55,548)
12,938,131

5,593,794
3,097,887
2,280,751
18,157
721,419
470,429(54,813)
12,127,624

3,655,029
902,286
4,867,542
835,253
155,945
10,416,058
481,762

4,390,595
1,022,029
4,870,212
20,652
288,056
10,591,546
468,003

1,767,519
767,402(49,141)
2,485,780
13,383,601
26,321,732

1,728,224
791,773(49,141)
2,470,855
13,530,404
25,658,029

501,379
1,914,806
945,236
26,59083,995
498,640
3,970,648

723,173
1,246,402
372,877
23,889310,254594,025
3,270,622

55,564
146,076
201,641
4,172,289

19,898145,468
165,366
3,435,988

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Accounts payable-trade
Accounts payable-other
Income taxes payable
Provision for sales returns
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Provision for retirement benefits
Other
Total noncurrent liabilities
Total liabilities-5-Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2014

Previous Consolidated Fiscal Year(As of December 20, 2013)(Thousand yen)
Current Consolidated First Quarter(As of March 20, 2014)

2,000,000
199,183
20,069,024(516,646)
21,751,561

2,000,000
199,423
20,091,779(531,663)
21,759,539

277,439
120,442
397,881
22,149,443
26,321,732

252,093
210,407462,500
22,222,040
25,658,029

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-6-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2014

(2) Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Earnings
Quarterly Consolidated Three Months Ended March 20, 2013 and 2014

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gains
Company house defrayment income
Other
Total non-operating income
Non-operating expenses
Sales discounts
Other
Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Net income

Three Months Ended
March 20, 2013
(December 21, 2012 March 20, 2013)
5,291,221
1,680,408
3,610,813
2,707,982
902,830(Thousand yen)Three Months Ended
March 20, 2014
(December 21, 2013 March 20, 2014)
5,798,236
1,771,578
4,026,658
3,082,504
944,154

3,394
192
15,64914,334
1,677
35,248

4,633
192
10,682
1,964
17,471

93,115
11
93,126
844,951

95,744
16,025
111,770
849,856

844,951
398,008(65,403)332,605
512,346
512,346

12,236
12,236
837,620354,941(17,787)
337,154
500,465
500,465-7-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2014

Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Three Months Ended March 20, 2013 and 2014

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests-8-

Three Months Ended
March 20, 2013
(December 21, 2012 March 20, 2013)
512,346(Thousand yen)Three Months Ended
March 20, 2014
(December 21, 2013 March 20, 2014)
500,465

238,443
131,797
370,240
882,587(25,345)
89,96464,618565,084

882,587-

565,084-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2014

(3) Notes regarding going concern assumption
None(4) Segment information
The Company omits information on business segments, as it is engaged in the production and distribution of hair-care products
and related merchandise, all of which are deemed to belong to a single business segment.
(5) Notes in case of any significant changes in shareholders’ equityNone-9-