Consolidated Financial Results for the Nine Months Ended September 20, 2014
[Japanese GAAP]
September 26, 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: October 24, 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: None

TEL: +81-6-6928-2331(Amounts of less than one million yen have been omitted.)1.

Consolidated financial results for the nine months ended September 20, 2014 (December 21, 2013- September 20, 2014)(1) Consolidated operating results
Net sales
Million yen
Nine months ended
September 20, 2014
Nine months ended
September 20, 2013
(Note) Comprehensive income

Operating income
Million yen(Percentages show year-on-year changes.)
Net income%
Million yen%%

Ordinary income
Million yen

18,437

5.3

3,215

(3.2)

3,042

(2.8)

1,845

(4.8)

17,508

8.8

3,322

6.5

3,131

7.4

1,938

11.3

%

Nine months ended September 20, 2014: 2,002 million yen [(22.0)%] Nine months ended September 20, 2013: 2,568 million yen [46.1%]

Net income per share
Diluted net income per share
Yen
Yen
Nine months ended
112.71
September 20, 2014
Nine months ended
117.57
September 20, 2013
(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 and retrospectively
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 of
September 20, 2014
As ofDecember 20, 2013
(Reference)
EquityNet assets

Equity ratio

Million yen

Million yen%

26,59723,09986.926,321

22,14984.1

As of September 20, 2014: 23,099 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

Yen

Yen

Year ended
December 20,
33.00
2013
Year ending
34.00
December 20,
2014
Year ending
December 20,
2014 (forecast)(Note) Changes to latest dividends forecast: None

-

Total

Yen

Yen

35.00

68.00

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 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.
: 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)

As of
September 20, 2014
As of
September 20, 2014
Nine months ended
September 20, 2014

16,558,617 shares
184,488 shares
16,375,107 shares

As ofDecember 20, 2013
As ofDecember 20, 2013
Nine months ended
September 20, 2013

16,558,617 shares
179,953 shares
16,489,597 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.
*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 Nine Months Ended September 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 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 Nine Months Ended September 20, 2014

1. Qualitative Information on Consolidated Results for the Current Period(1)

Qualitative information on consolidated operating results
During the nine month period ended September 20, 2014, the Japanese economy was on a moderate recovery trend as corporate
earnings improved on the back of weakness in the yen. On the other hand, a sense of stagnation emerged due mainly to lateness ina recovery in personal consumption following a consumption tax increase and the resultant weakness in sales of products toindividuals. Furthermore, increasing concerns about the decelerating economies of the emerging nations led to uncertainty overthe future. In the beauty industry, the future remains unpredictable due partly to some experiencing a slowdown in customer
traffic associated with the increase in consumption tax and the impact of customers refraining from going outdoors because of
unseasonable weather.
Under such circumstances, the Milbon Group, fully aware of the importance of enhancing “intangible value” that centers on
communication to respond 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 net sales during the nine month period ended September 20, 2014 increased to 18,437 million yen (up 5.3%
year-on-year). This was primarily due to the extremely strong sales of Aujua Aging Care series Immurise line, which waslaunched in February, and leave-in treatment Deesse’s Elujuda Emulsion, which was launched in June, in the hair-care productcategory. Favorable sales growth at the overseas subsidiaries thanks to proactive educational activities conducted for salons and achange in distributor strategy was another factor for the increase.
Operating income was 3,215 million yen (down 3.2% year-on-year), ordinary income was 3,042 million yen (down 2.8%
year-on- year) and net income was 1,845 million yen (down 4.8% year-on-year). This is primarily due to a temporary increase in
selling, general and administrative expenses in the first half of the fiscal year attributable to factors including various costs
relating to extension work at the Central Research Institute and the renewal of sales promotion tools, which had been planned
since the beginning of the fiscal 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)

Nine months ended
September 20, 2013
AmountRatio (%)

Nine months ended
September 20, 2014
AmountRatio (%)

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

Hair care products

9,086

51.9

10,436

56.6

1,349

14.9

Hair coloring products

7,018

40.1

6,654

36.1

(364)

(5.2)

Permanent wave products

1,224

7.0

1,167

6.3

(57)

(4.7)

Others

179

1.0

179

1.0

0

0.1

Total

17,508100.0

18,437

100.0

928

5.3

[Breakdown of net sales into domestic and overseas sales](Unit: Million yen)

Nine months ended
September 20, 2013
AmountRatio (%)

Nine months ended
September 20, 2014
AmountRatio (%)

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

Domestic sales

16,192

92.5

16,562

89.8

370

2.3

Overseas sales

1,316

7.5

1,874

10.2

558

42.4

Total

17,508100.0

18,437

100.0

928

5.3

-2-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 20, 2014(2)

Qualitative information on consolidated financial position
Total assets at the end of the nine month period ended September 20, 2014 increased by 275 million yen compared to the end of
the previous consolidated fiscal year to 26,597 million yen.
Current assets were 12,937 million yen. This was due mainly to a decrease in cash and deposits of 965 million yen and increases
in merchandise and finished goods and in raw materials and supplies of 663 million yen and 154 million yen, respectively.
Noncurrent assets increased by 275 million yen compared to the end of the previous consolidated fiscal year to 13,659 million yen.
This was due mainly to an increase of 832 million yen attributable to capital expenditure including the extension work at theCentral Research Institute, a decrease of 735 million yen attributable to the recording of depreciation and amortization and anincrease of 166 million yen in investment securities attributable to factors such as higher prices of listed stocks.
Current liabilities decreased by 636 million yen compared to the end of the previous consolidated fiscal year to 3,334 million yen.
This was due mainly to decreases in accounts payable-other and in income taxes payable of 635 million yen and 486 million yen,respectively, and increases in accounts payable-trade and in provision for bonuses by 149 million yen and 258 million yen,respectively.
There were no significant changes in noncurrent liabilities from the end of the previous consolidated fiscal year.
Net assets increased by 950 million yen compared to the end of the previous consolidated fiscal year to 23,099 million yen. Thiswas due mainly to an increase of 811 million yen in retained earnings.
As a result, the equity ratio changed from 84.1% at the end of the previous consolidated fiscal year to 86.9%. Net assets per sharebased on the total outstanding shares as of the end of the period under review increased from 1,352.34 yen per share at the end of
the previous consolidated fiscal year to 1,410.75 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 Nine Months Ended September 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 accounting policies, changes in accounting estimates and retrospective restatements
None

-4-

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

Quarterly Consolidated Financial Statements(1)

Quarterly Consolidated Balance Sheets
Previous Consolidated Fiscal Year(As of December 20, 2013)

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-(Thousand yen)
Current Consolidated Third Quarter(As of September 20, 2014)

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

5,880,407
3,120,732
2,650,446
31,824
762,119545,245(53,030)
12,937,744

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

4,308,173
1,046,443
4,867,876
51,444273,466
10,547,403
438,386

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

1,933,566
789,312(49,141)
2,673,737
13,659,527
26,597,271

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

651,089
1,279,546
458,641
24,162342,950
578,2093,334,600

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

18,030144,862
162,8933,497,493

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

Previous Consolidated Fiscal Year(As of December 20, 2013)
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-(Thousand yen)
Current Consolidated Third Quarter(As of September 20, 2014)

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

2,000,000
199,483
20,880,282(534,881)
22,544,884

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

384,539
170,353554,893
23,099,778
26,597,271

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

(2)

Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Earnings
Quarterly Consolidated Nine Months Ended September 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
Profit on surrender of insurance
Other
Total non-operating income
Non-operating expenses
Sales discounts
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Total extraordinary 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

Nine Months Ended
September 20, 2013
(December 21, 2012 September 20, 2013)
17,508,946
5,563,866
11,945,079
8,622,277
3,322,801-7-(Thousand yen)
Nine Months Ended
September 20, 2014
(December 21, 2013 September 20, 2014)
18,437,602
5,720,656
12,716,946
9,501,350
3,215,596

11,59825,04028,11637,7438,592
111,091

6,881
32,414
3,116
35,96145,717
10,448
134,540

302,039557
302,596
3,131,297

307,533132
307,665
3,042,471

552
552

811
811

9,831
9,831
3,122,018
1,338,067(154,715)
1,183,352
1,938,666
1,938,666

23,53023,5303,019,752
1,219,388(45,344)
1,174,044
1,845,707
1,845,707

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

Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Nine Months Ended September 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-

Nine Months Ended
September 20, 2013
(December 21, 2012 September 20, 2013)
1,938,666(Thousand yen)
Nine Months Ended
September 20, 2014
(December 21, 2013 September 20, 2014)
1,845,707

370,509258,964
629,473
2,568,139

107,100
49,911
157,0112,002,719

2,568,139-

2,002,719-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 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-