Consolidated Financial Results for the Three Months Ended March 20, 2015
[Japanese GAAP]
March 27, 2015
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 27, 2015
Scheduled starting date of dividend payments: Preparation of supplementary materials on the quarterly results: Yes
Holding of an explanatory meeting on the quarterly results: None

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, 2015 (December 21, 2014 - March 20, 2015)(1) Consolidated operating results

Three months ended March 20, 2015

Net sales
Million yen
6,083

Three months ended March 20, 2014

5,798

(Note) Comprehensive income%
4.9

Operating income
Million yen
997

%
5.7

9.6

944

4.6

Three months ended March 20, 2015: 930 million yen [64.7%]
Net income per share(Percentages show year-on-year changes.)
Ordinary income
Net income
Million yen%
Million yen
%
980
15.3
635
26.9
849

0.6

500

(2.3)

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

Three months ended March 20, 2015

Yen
38.79

Diluted net income per share
Yen-

Three months ended March 20, 2014

30.56

-

(2) Consolidated financial position
Total assets
Million yen
28,335

As of March 20, 2015
As of December 20, 2014
(Reference)

EquityNet assets
Million yen
24,44028,138Equity ratio%
86.3

24,104As of March 20, 2015: 24,440 million yen

85.7

As of December 20, 2014: 24,104 million yen

2. Payment of dividends
Annual dividends
End of 1st quarterEnd of 2nd quarter

Yen
Year ended December 20, 2014-

Year ending December 20, 2015-

Year ending December 20, 2015
(forecast)(Note) Changes to latest dividends forecast: None

End of 3rd quarter

Yen
34.00

34.00

End of fiscal year

Yen

Total

-

Yen
34.00

Yen
68.00

-

34.00

68.00

3. Consolidated operating forecasts for the fiscal year ending December 20, 2015 (December 21, 2014 - December 20, 2015)(Percentages show year-on-year changes.)
Net sales
Million yen
Year ending December 20, 2015

26,900(Note) Changes to latest performance forecasts: None

Operating income% Million yen
6.6

4,661

Ordinary income% Million yen

4.7

4,369

Net income% Million yen

3.6

2,630

%

Net income per share
Yen

0.3

160.62

*Notes(1) Significant changes in subsidiaries during the period(changes in specified subsidiaries resulting in the change in the scope of consolidation)
New: 0 companies (Company name: ): NoneExclude: 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.
: Yes2) 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 As of(including treasury shares)
March 20, 2015
2) Number of treasury shares at the end of the period As of
March 20, 2015
3) Average number of shares during the period
Three months ended(cumulative)
March 20, 2015

16,558,617 shares
185,078 shares
16,373,819 shares

As ofDecember 20, 2014
As ofDecember 20, 2014
Three months ended
March 20, 2014

16,558,617 shares
184,672 shares
16,376,028 shares*Status of execution of quarterly review of financial statements
As these financial statements are not subject to the review of the quarterly financial statements pursuant to the Financial Instruments and Exchange Act,
procedures for said review are not completed 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, 2015

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 consolidated financial position............................................................................................................ 3(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 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 assumption ................................................................................................................................... 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, 2015

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, 2015, the Japanese economy continued its moderate recovery trend centered in
the corporate sector, as both the employment and income environments are improving as a result of the decline in crude oil prices
as well as the positive effects of the government’s economic policies. In the beauty industry, demographics are having a growing
impact on salons, such as the decline in customers due to the decrease in the productive-age population (15 to 64 years old) anddifficulty hiring staff because of the drop in the number of beauty school students. Despite this environment, the yearly usage
amount by mature women, centered on women in their 40s, is on the rise, and the high employment rate has resulted in a recent
rising trend in usage amounts by women in their mid-20s as well.
Amid this environment, the Milbon Group believes that it is important that professionals with expertise respond to the awakening
and heightening beauty needs of these two generations of women―those in their 20s and those in their 40s. Efforts are focused on
salons with the goal of “raising the level of expertise of professionals and supporting higher productivity in order to respond to
women, who continue to shine in society, from those awakening to beauty to those with heightened beauty needs.”
Consolidated net sales during the three month period ended March 20, 2015 increased to 6,083 million yen (up 4.9%
year-on-year). This was primarily due to steady growth in sales of the system hair care brand Aujua, as well as solid sales of haircare products containing Milbon’s original hair repair ingredient CMADK. 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 was 997 million yen (up 5.7% year-on-year), ordinary income was 980 million yen (up 15.3% year-on-year)
and net income was 635 million yen (up 26.9% 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)Three months ended
March 20, 2014
AmountRatio (%)

Three months ended
March 20, 2015
AmountRatio (%)

Increase(decrease)amountYear-on-yearchange (%)

Hair care products

3,099

53.5

3,537

58.1

437

14.1

Hair coloring products

2,268

39.1

2,172

35.7

(96)

(4.3)

Permanent wave products

379

6.5

331

5.5

(47)

(12.5)

Others

50

0.9

41

0.7

(8)

(17.7)

Total

5,798

100.0

6,083

100.0

284

4.9

[Breakdown of net sales into domestic and overseas sales](Unit: Million yen)Three months ended
March 20, 2014
AmountRatio (%)

Three months ended
March 20, 2015
AmountRatio (%)

Increase(decrease)amountYear-on-yearchange (%)

Domestic sales

5,203

89.7

5,276

86.7

73

1.4

Overseas sales

594

10.3

806

13.3

211

35.5

5,798

100.0

6,083

100.0

284

4.9

Total

-2-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2015

(2)

Qualitative information on consolidated financial position
Total assets at the end of the three month period ended March 20, 2015 increased by 196 million yen compared to the end of theprevious fiscal year to 28,335 million yen.
Current assets decreased by 726 million yen compared to the end of the previous fiscal year to 13,581 million yen. This was
mainly due to the 881 million yen decline in cash and deposits and the 359 million yen decline in notes and accounts receivable trade, as well as the 396 million yen increase in merchandise and finished goods.
Non-current assets increased by 922 million yen compared to the end of the previous fiscal year to 14,754 million yen. This wasdue mainly to the 412 million yen increase in land in conjunction with the purchase of land adjacent to the Yumegaoka Plant andan increase of 231 million yen in investment securities attributable to factors such as higher prices of listed stocks.
Current liabilities decreased by 155 million yen compared to the end of the previous fiscal year to 3,714 million yen. This wasdue mainly to decreases in accounts payable - other and in income taxes payable of 308 million yen and 380 million yen,respectively, and increases in accounts payable - trade and in provision for bonuses by 259 million yen and 241 million yen,respectively.
There were no significant changes in non-current liabilities from the end of the previous fiscal year.
Net assets increased by 336 million yen compared to the end of the previous fiscal year to 24,440 million yen. This was due
mainly to the 152 million yen increase in foreign currency translation adjustment due to the weakening of the yen and the 149
million yen increase in valuation difference on available-for-sale securities attributable to factors such as higher prices of listed
stocks.
As a result, the equity ratio changed from 85.7% at the end of the previous fiscal year to 86.3%. Net assets per share based on the
total outstanding shares as of the end of the period under review increased from 1,472.10 yen per share at the end of the previous
fiscal year to 1,492.68 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 21, 2015.

-3-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 20152.

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 accounting policies, changes in accounting estimates and retrospective restatements(Changes in accounting policies)(Application of the Accounting Standard for Retirement Benefits, etc.)
Regarding the “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May 17, 2012) and “Guidance on
Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, May 17, 2012), effective from the current first quarter,
the Company has applied the provisions of the main clauses of Paragraph 35 of the Accounting Standard for Retirement Benefits
and Paragraph 67 of Guidance on Accounting Standard for Retirement Benefits, reviewed its calculation method for retirement
benefit obligations and current service costs, and changed its method of attributing expected benefits to periods from thestraight-line basis to the benefit formula basis. In addition, the Company has changed the method for determining the discountrate from a method based on a period approximate to the expected average remaining working lives of employees to a method thatuses a single weighted average discount rate reflecting the estimated timing and amount of benefit payments.
Application of the Accounting Standard for Retirement Benefits and Guidance on Accounting Standard for Retirement Benefits
is in line with the transitional measures provided in Paragraph 37 of the Accounting Standard for Retirement Benefits, and theeffect of the revision to the calculation method for retirement benefit obligations and current service costs has been added to or
deducted from retained earnings as of December 21, 2014.
As a result, as of December 21, 2014, net defined benefit asset decreased by 55,973 thousand yen and retained earnings decreased
by 36,103 thousand yen. The effect of the revision on operating income, ordinary income and income before income taxes andminority interests for the three month period ended March 20, 2015 is immaterial.

-4-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 20153.

Quarterly Consolidated Financial Statements(1)

Quarterly Consolidated Balance Sheets
Previous Fiscal Year(As of December 20, 2014)

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
Non-current 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
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current 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
Non-current liabilities
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities-5-(Thousand yen)
Current First Quarter(As of March 20, 2015)

7,386,867
3,427,276
2,258,355
22,989795,564
460,762(44,289)
14,307,525

6,505,820
3,067,435
2,681,407
28,182
850,717
491,467(43,613)
13,581,417

4,270,850
1,076,672
4,876,552
58,635248,178
10,530,889
448,856

4,385,075
1,104,279
5,289,089
157,299
324,730
11,260,474
412,947

1,908,728
257,649
735,001(49,681)2,851,698
13,831,443
28,138,969

2,139,970
227,062
763,429(49,681)3,080,779
14,754,202
28,335,619

503,378
1,841,629
769,801
24,43689,198641,2883,869,733

763,205
1,533,030
389,581
21,302
330,690
676,3423,714,153

20,238144,883
165,121
4,034,855

24,916
156,177
181,093
3,895,246

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2015

Previous Fiscal Year(As of December 20, 2014)
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-6-(Thousand yen)
Current First Quarter(As of March 20, 2015)

2,000,000
199,599
21,655,660(535,654)
23,319,606

2,000,000
199,604
21,698,026(537,041)
23,360,589

368,519
310,899
105,089784,508
24,104,114
28,138,969

517,669
463,102
99,0101,079,782
24,440,372
28,335,619

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2015

(2)

Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Earnings
Three Months Ended March 20, 2014 and 2015

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Company house defrayment income
Gain on surrender of insurance
Other
Total non-operating income
Non-operating expenses
Sales discounts
Other
Total non-operating expenses
Ordinary income
Extraordinary losses
Loss on retirement of non-current 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-7-(Thousand yen)Three Months Ended
March 20, 2015
(December 21, 2014 March 20, 2015)
6,083,009
1,800,879
4,282,129
3,284,564
997,565

4,633
192
–
10,682–
1,964
17,4711,600
192
25,995
14,32644,056
2,783
88,954

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

104,834
1,429
106,263980,256

12,236
12,236
837,620354,941(17,787)
337,154
500,465
500,465449
449
979,807377,092(32,467)
344,625
635,182
635,182

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2015

Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended March 20, 2014 and 2015

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to minority interests-8-

Three Months Ended
March 20, 2014
(December 21, 2013 March 20, 2014)
500,465(Thousand yen)Three Months Ended
March 20, 2015
(December 21, 2014 March 20, 2015)
635,182(25,345)
89,964–64,618565,084

149,150
152,202(6,078)295,274
930,457

565,084–

930,457–

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2015

(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-