Consolidated Financial Results for the Fiscal Year Ended December 20, 2012
[Japanese GAAP]
January 23, 2013
Name of registrant:
Milbon Co., Ltd.
Tokyo Stock Exchange, First Section
Code No.:4919
URL http://www.milbon.co.jp
Representative:
Ryuji Sato, President and CEO
Inquiries:
Masahiro Murai, Managing Director
TEL: +81-6-6928-2331
Scheduled date of annual general meeting of shareholders: March 15, 2013
Scheduled filing date for Securities Report: March 15, 2013:
Scheduled starting date of dividend payments: March 18, 2013
Preparation of supplementary materials on the Consolidated Financial Results: Yes
Holding of an explanatory meeting on Consolidated Financial Results: Yes (For institutional investors and analysts)(Amounts of less than one million yen have been omitted)

1.

Consolidated financial results for the fiscal year ended December 20, 2012 (December 21, 2011- December 20, 2012)(1) Consolidated operating results
Net sales
Million yen
Year ended
December 20, 2012
Year ended
December 20, 2011
(Note) Comprehensive income(Percentages show year-on-year changes)
Net income%
Million yen%%

Ordinary income
Million yen

21,887

6.6

3,986

5.1

3,735

5.3

2,128

(7.7)

20,526

3.9

3,792

6.0

3,545

6.6

2,304

25.8

%

Operating income
Million yen

Year ended December 20, 2012: 2,219 million yen [1.0%]

Net income per share
Diluted net income per share
Yen
Yen
Year ended
154.44
December 20, 2012
Year ended
167.24
December 20, 2011
(Reference)
Equity in earnings (losses) of affiliates

Year ended December 20, 2011: 2,198 million yen [26.7%]

Return on equity (ROE)%

Return on assets (ROA)
%

-

10.8

16.2

18.2

-

12.5

16.3

18.5

Year ended December 20, 2012: -- million yen

Operating income ratio%

Year ended December 20, 2011: -- million yen(2) Consolidated financial position
Total assets
As of December 20,
2012
As of December 20,
2011(Reference)
EquityNet assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

23,662

20,36786.1

1,478.02

19,05984.4

1,383.02

22,592As of December 20, 2012: 20,367 million yen

As of December 20, 2011: 19.059 million yen(3) Consolidated cash flows
Cash flow from operating activities Cash flow from investing activities Cash flow from financing activities Balance of cash and cash equivalents
Million yen
Million yen
Million yen
Million yen
Year ended
December 20, 2012
Year ended
December 20, 2011

2,977

(1,506)

(910)

5,633

3,157

101

(836)

5,076

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, 2011
Year ended
December 20, 2012
Year ending
December 20, 2013
(forecast)

Yen

Yen

Yen

Total dividends(Annual)

Total

Dividend payout
ratio(Consolidated)

Dividends onequity (DOE)(Consolidated)

Yen

Million yen

%

%

-

30.00

-

34.00

64.00

882

38.3

4.8

-

32.00

-

34.00

66.00

909

42.7

4.6

-

33.00

-

33.00

66.00

37.3

3. Consolidated operating forecasts for the fiscal year ending December 20, 2013 (December 21, 2012 - December 20, 2013)(Percentages show year-on-year changes)
Net sales
Million yen
Six months ending June 20, 201311,082
Year ending December 20, 2013
23,100Operating income
Ordinary income
Net income% Million yen% Million yen% Million yen
%
5.1
1,822
(7.3)
1,671
(8.2)
1,011
(5.4)
5.5
4,250
6.6
3,960
6.0
2,440
14.6

Net income per share
Yen
73.36
177.06

*Notes(1) Significant changes in subsidiaries during the period(changes in specified subsidiaries accompanied by changes in the scope of consolidation) : Yes
New: 1 company (Company name: MILBON (THAILAND) CO., LTD.)
Exclude: 0 companies (Company name: )(2) 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(3) 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

Year ended
December 20, 2012
Year ended
December 20, 2012
Year ended
December 20, 2012

3) Average number of shares during the period

13,798,848 shares
18,716 shares
13,780,535 sharesYear ended
December 20, 2011
Year ended
December 20, 2011
Year ended
December 20, 2011

13,798,848 shares
17,728 shares
13,782,010 shares(Reference) Summary of non-consolidated operating results1.

Non-consolidated financial results for the fiscal year ended December 20, 2012 (December 21, 2011- December 20, 2012)(1) Non-consolidated operating results
Net sales
Million yen
Year ended
21,403
December 20, 2012
Year ended
20,218December 20, 2011

%

%

5.9

4,015

3.6

3,761

3.8

2,153

(9.3)

4.0

3,875

3.7

3,623

3.1

2,374

16.1

Net income per share

Ordinary income
Million yen

Diluted net income per share
Yen

Year ended
December 20, 2012
Year ended
December 20, 2011

2.

Yen

156.29-172.31-(2) Non-consolidated financial position
Total assets
As of December 20,
2012
As of December 20,
2011(Reference)
Equity(Percentages show year-on-year changes)
Net income%
Million yen%

Operating income
Million yen

Net assets

Equity ratio

Net assets per share

Million yen

Million yen%

Yen

24,17520,96986.7

1,521.72

19,65085.0

1,425.90

23,116
As of December 20, 2012: 20,969 million yen

As of December 20, 2011: 19,650 million yen

Non-consolidated operating forecasts for the fiscal year ending December 20, 2013 (December 21, 2012 - December 20, 2013)(Percentages show year-on-year changes)

Six months ending June 20,
2013
Year ending December 20,
2013

Net sales
Million yen%

Ordinary income
Million yen%

Net income
Million yen%

Net income per share
Yen

10,789

4.5

1,769

(4.7)

1,107

0.5

80.34

22,416

4.7

4,100

9.0

2,580

19.8

187.22*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. For notes on the use of preconditions ofoperating forecasts and the use of operating forecasts, refer to “1. Operating results (1) Analysis of operating results” on page 2 of the supplementarymaterials.

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Fiscal Year Ended December 20, 2012

Contents of supplementary materials
1. Analysis of operating results and financial conditions ............................................................................................................... 2(1)

Analysis of operating results ............................................................................................................................................ 2(2)

Analysis of financial conditions ....................................................................................................................................... 3(3)

Basic policy on the distribution of profit and dividends for the fiscal year under review and the following fiscal year .. 4

(4)

Business and other risks ................................................................................................................................................... 4

2. Outline of the Milbon Group ..................................................................................................................................................... 6
3. Management policy .................................................................................................................................................................... 7(1)

Basic management policies .............................................................................................................................................. 7(2)

Medium- to long-term management strategies and target management indices ............................................................... 7(3)

Tasks to be addressed by the Company ............................................................................................................................ 7

4. Consolidated Financial Statements ............................................................................................................................................ 8(1)

Consolidated Balance Sheets ........................................................................................................................................... 8(2)

Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income ................................... 10(3)

Consolidated Statements of Changes in Shareholders’ Equity ....................................................................................... 12(4)

Consolidated Statements of Cash Flows ........................................................................................................................ 14-1-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Fiscal Year Ended December 20, 2012

1.

Analysis of operating results and financial conditions(1)

Analysis of operating results

1)

Operating results for the consolidated fiscal year under review
During the consolidated fiscal year under review, our nation’s economy continued to be enveloped in uncertainty, despite signsof moderate recovery backed by earthquake reconstruction demand, as deflation continued and the economies of Europe andthe emerging countries slowed down. The climate in the beauty industry also remained harsh.
Under such circumstances, the Milbon Group promoted initiatives in order for salons to realize sustainable growth as well as
increased revenues and profits, under the theme of “Nurturing ‘personal production capabilities’ that meet diverse value andsupporting ‘an increase in yearly usage amounts per customer.’” By aligning ourselves with women’s perspectives andfocusing our efforts on improving hairstyle designs / hairstyle menus / take-home products, which would lead to increased
yearly usage amounts per customer, and reinforcing the training systems and organizational capacities of the salons, which
would be instrumental in fostering designers with “personal production capabilities,” we have been able to achieve our targets
for both consolidated net sales and every multiple-step income, namely gross profit, operating income, ordinary income,income before income taxes, and net income.
Consolidated net sales during the consolidated fiscal year under review increased by 1,360 million yen to 21,887 million yen(up 6.6% year-on-year). This was primarily due to the strong sales of DEESSE’S Elujuda, leave-in treatment which waslaunched in February and AUJUA, premium hair-care products, in the hair-care product category; and the expanded sales ofpermanent and semi-permanent hair coloring products; “Ordeve Beaute,” product line specialized for gray hair and “Pearl andWhity Line and Melty Line,” additional color lines for hair coloring brand “Ordeve,” which were launched in February and
September in the hair coloring product category. Favorable sales growth of the overseas subsidiaries thanks to the proactive
educational activities conducted in the salons was another factor of the increase.
Selling, general and administrative expenses increased by 10.4% over the previous year to 10,847 million yen, as a result ofsales promotion expenses of new products and personnel expenses exceeding the previous year levels. Operating income
increased by 194 million yen to 3,986 million yen (up 5.1% year-on-year) and ordinary income also increased by 189 million
yen to 3,735 million yen (up 5.3% year-on-year). Net income decreased by 176 million yen to 2,128 million yen (down 7.7%
year-on-year), as a result of having reported insurance income under extraordinary income in the previous year. However, if wewere to eliminate the effects of insurance income, then net income would have increased by 6.0% 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]Previous Consolidated
Fiscal Year
Product Category
AmountRatio (%)

(Unit: Million yen)
Current Consolidated
Fiscal Year
AmountRatio (%)

Increase(Decrease)
AmountPercentage
Change (%)

Hair care products

10,39850.7

11,069

50.6

670

6.4

Hair coloring products

7,987

38.9

8,820

40.3

832

10.4

Permanent wave products

1,816

8.8

1,678

7.7

(137)

(7.6)

Others

323

1.6

318

1.4

(4)

(1.5)

Total

20,526100.0

21,887

100.0

1,360

6.6

[Breakdown of net sales into domestic and overseas sales]
Previous Consolidated
Fiscal Year
AmountRatio (%)

(Unit: Million yen)
Current Consolidated
Fiscal Year
AmountRatio (%)

Increase(Decrease)
AmountPercentage
Change (%)

Domestic sales

19,323

94.1

20,482

93.6

1,159

6.0

Overseas sales

1,202

5.9

1,404

6.4

201

16.7

Total

20,526100.0

21,887

100.0

1,360

6.6

-2-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Fiscal Year Ended December 20, 20122)

Outlook for fiscal 2013
In terms of the domestic economic environment, while some relief is expected from the appreciating yen following the change
in administration, uncertainty about the future continues to persist. In the beauty industry, amid the harsh business climate,customers in their 30’s and 40’s have come to make up roughly half of the clientele of our partner salons and there has been amarked increase in yearly usage amounts per customer.
Under these circumstances, the Milbon Group has been changing its awareness of mature women who make up its clientele,
and being fully aware of the importance of creating new value, has been promoting initiatives intended for salons under theslogan of “Promotion of Age Beauty Innovation, in which professional designers answer to the new values held by mature
women.”
The full-fledged, nationwide campaign in which hair designers market genuine organic products will commence from fiscal
2013, and we hope to capture new customers for our salons and contribute to their increased sales and income.
In terms of global expansion, we have commenced trial sales in Thailand, Malaysia, Vietnam and Turkey, and we have begun
preparations to start operations at our Thai plant in fiscal 2014. We have also dispatched employees and commenced fieldsurveys in Indonesia.
As a result of these efforts, the Company expects consolidated net sales of 23,100 million yen (up 5.5% year-on-year),consolidated operating income of 4,250 million yen (up 6.6% year-on-year), consolidated ordinary income of 3,960 million
yen (up 6.0% year-on-year), and consolidated net income of 2,440 million yen (up 14.6% year-on-year).

(2)

Analysis of financial conditions

1)

Assets, liabilities and net assets
Total assets at the end of the current consolidated fiscal year increased by 1,069 million yen compared to the end of theprevious consolidated fiscal year to 23,662 million yen.
Current assets increased by 982 million yen compared to the end of the previous consolidated fiscal year to 11,599 million yen.
This was mainly due to the increase in cash and deposits by 986 million yen.
Noncurrent assets increased by 86 million yen compared to the end of the previous consolidated fiscal year to 12,062 million
yen.
Current liabilities decreased by 230 million yen compared to the end of the previous consolidated fiscal year to 3,097 million
yen. This was due mainly to the decrease in income taxes payable by 369 million yen.
Noncurrent liabilities decreased by 7 million yen from the end of the previous consolidated fiscal year to 197 million yen.
Net assets increased by 1,307 million yen compared to the end of the previous consolidated fiscal year to 20,367 million yen.
This was due mainly to the increase of 1,218 million yen in retained earnings.
As a result, equity ratio changed from 84.4% at the end of the previous consolidated fiscal year to 86.1%. Net assets per sharebased on total outstanding shares as of the end of the current consolidated fiscal year increased from 1,383.02 yen per share at
the end of the previous consolidated fiscal year to 1,478.02 yen per share.

2)

Cash flows
Cash and cash equivalents (hereinafter “net cash”) at the end of the current consolidated fiscal year increased by 556 million
yen compared to the end of the previous consolidated fiscal year to 5,633 million yen, as a result of using the net cash provided
by operating activities for the payment of income taxes and the payment of dividends.
(Cash flows from operating activities)
Net cash provided by operating activities amounted to 2,977 million yen. This was mainly the result of posting 3,584 million
yen in income before income taxes and minority interests, depreciation and amortization of 952 million yen and 1,805 million
yen in income taxes paid.
(Cash flows from investing activities)
Net cash used in investing activities amounted to 1,506 million yen. This was mainly the result of the purchase of property,
plant and equipment of 687 million yen, purchase of intangible assets of 176 million yen and payments into time deposits of
424 million yen.
(Cash flows from financing activities)
Net cash used in financing activities amounted to 910 million yen. This was mainly the result of the cash dividends paid toshareholders of 908 million yen.

-3-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Fiscal Year Ended December 20, 2012

(Reference) Cash flow-related indicators
Year ended
December 20,
2008

Year ended
December 20,
2009

Year ended
December 20,
2010

Year ended
December 20,
2011

Year ended
December 20,
2012

79.9

81.8

84.9

84.4

86.1

154.0

125.6

131.4

146.03163.76

4.7

2.8

3.3

2.6

2.7

1,303.1

3,282.8---

Equity ratio (%)
Equity ratio based on market
value (%)
Interest-bearing debt to cash
flows ratio (%)
Interest-coverage ratio (times)(Notes) Equity ratio: Shareholders’ equity/total assets
Equity ratio based on market value: Total market capitalization/total assets
Interest-bearing debt to cash flows ratio: Interest-bearing debt/cash flows
Interest-coverage ratio: Cash flows/interest payments*

All of the figures in the aforementioned indices were calculated on a consolidated basis.

*

Total market capitalization was calculated by multiplying the closing stock price at the end of the period by the total number ofoutstanding shares at the end of the period (excluding treasury stock).

*

Cash flows were shown as an operating cash flow in the consolidated statements of cash flows.

*

Interest-bearing debt refers to all debt posted in the consolidated balance sheets upon which interest is paid. The amount ofinterest paid in the consolidated statements of cash flows was treated as an interest payment in the calculations above.

(3)

Basic policy on the distribution of profit and dividends for the fiscal year under review and the following fiscal year
The Milbon Group considers the returning of profits to shareholders as an important management issue and makes it a basic
policy to pay dividends in accordance with its operating results, while enhancing its business structure by maintaining internal
reserves to the end of improving its earnings in the future. In addition, interim dividends are determined at the Board of
Directors meetings and year-end dividends at the general meeting of shareholders, and it is the Group’s basic policy to pay
dividends twice every fiscal year.
For the current consolidated fiscal year, upon comprehensively taking into account factors including our financial position andprofit levels, we have decided to pay an interim dividend of 32 yen per share, and a year-end dividend of 34 yen per share, fora total annual dividend of 66 yen per share, which represents an increase of 2 yen per share compared to the previous fiscal
year. For the following fiscal year, we plan to pay an annual dividend of 66 yen per share, which is equal to the annual dividend
for the current consolidated fiscal year.
Internal reserves are used for capital expenditures required for the medium- to long-term expansion of our business as well as
R&D investments, to the end of enhancing our business structure.

(4)

Business and other risks
Risks that could potentially affect the operating results, stock price and financial position of the Milbon Group include thefollowing. The future risks identified in this section are based on assessments made by the Company as of the end of theconsolidated fiscal year under review. The Group recognizes the possibility of these risk events actually occurring and has
prepared policies to prevent and avert such risks and take appropriate measures to minimize the impact of such risks when they
do occur.

1)

Risks associated with global expansion
The Milbon Group is aggressively expanding its business into the overseas markets. Global expansion entails risks relating tointellectual property rights including counterfeit goods, unforeseeable changes in laws and regulations, and risks of social
unrest due to terrorism, war and other factors. Such risks could have a major impact on the Group’s operating results andfinancial position.

2)

Information security
The Milbon Group has taken various measures to protect information assets including customers’ personal information andconfidential information. However, unforeseeable events, such as the leakage of information due to unauthorized access, could
have a major impact on the Group’s operating results and financial position.

3)

Risks associated with debt collection
The Milbon Group deliberates and records necessary reserves upon regularly reviewing its business partners from bothquantitative and qualitative perspectives and in terms of collection status. However, deterioration in the business partner’s-4-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Fiscal Year Ended December 20, 2012

credit standing or events such as bankruptcy could have a major impact on the Group’s operating results and financial position.
4)

Risks associated with major accidents
The Milbon Group utilizes company cars in its sales activities. The Group implements safety measures that places maximum
priority on human life, including strict control over driving and the reinforcement of safety training. However, should a major
accident event occur, it could lead to the loss of the customers’ and the public’s trust in the Group and have a major impact on
the Group’s operating results and financial position.

-5-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Fiscal Year Ended December 20, 20122.

Outline of the Milbon Group
Name

Percentage ofvoting rights held(%)

Relationship with theCompany

Sale of hairproducts

100.0

Sells the Company’s hairproducts in the U.S.

Sale of hairproducts

Sells the Company’s hairproducts in China.
100.0 Three executives holdconcurrent posts at theCompany.

KRW 3,000 Sale of hairmillion products

Sells the Company’s hairproducts in South Korea.
100.0 One executive holds a
concurrent post at theCompany.

Location

Capital StockNew York, USA

USD 2 million

Main line ofbusiness(Consolidated subsidiaries)

MILBON USA, INC.

Milbon Trading(Shanghai) Co., Ltd.

Milbon Korea Co., Ltd.

Shanghai, China

Seoul, South
Korea

MILBON (THAILAND) CO., Bangkok,
LTD.
ThailandJPY 430 million

Manufacture and
THB 230 million sale of hairproducts

100.0(Note) All companies fall under the category of “specified subsidiary.”
We have omitted the disclosure of the Company’s “Diagram of Business Activities (Business Details),” as there have been no
significant changes since the “Diagram of Business Activities (Business Details)” which was contained in the Company’s
recent Securities Report (submitted on March 16, 2012).

-6-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Fiscal Year Ended December 20, 2012

3.
(1)

Management policy
Basic management policies
Disclosure of basic management policies has been omitted as there have been no significant changes to the contents disclosed
in the Consolidated Financial Statements for the Fiscal Term Ended December 20, 2006 (Disclosed on January 19, 2007).
The relevant Consolidated Financial Results may be viewed by accessing the following URL.
(Website of the Company)
URL: http://www.milbon.co.jp(Website of the Tokyo Stock Exchange (for listed companies))
URL: http://www/tse.or.jp/listing/compsearch/index.html(2)Medium- to long-term management strategies and target management indices
The Milbon Group, in the “Medium Term 5-Year Business Vision (2010-2014),” has set forth the following global vision:“Milbon aims to be the global No.1, first as a Japanese professional manufacturer, by cultivating global field ideas throughhuman resource development and training in order for hair designers to achieve their goals.” The Milbon Group aims toachieve consolidated net sales of 25,000 million yen and overseas sales to total sales ratio of 10.5% in 2014, the final year of
the 5-year plan.
In terms of the strategies by areas, we will establish the strong No.1 position in Japan, as it is the foundation for globalization.
For North America, as the symbol of globalization, we create the basis for the Group’s existence and the core of all field
activities. We will also cultivate Asian markets and establish its profit structure as a cornerstone of the Group’s global growthstrategies. We will pursue opportunities to enter the European market, as a source of globalization. As part of our initiatives
toward globalization, we will aim for global growth by establishing a global organizational control, fostering global humanresources, expanding into new areas and establishing an overseas production framework.

(3)

Tasks to be addressed by the Company
1)

In the marketing system, establish a program for fostering field persons, including the recruiting of local employees, andenhance the quality of marketing activities and educational assistance at the hair salons, to the end of further evolving ourfield person (trainer/sales staff) strategy.

2)

In product development, further improve TAC (Target Authority Customer) product development system, which catches
the latest changes in hair design trends and utilizes such information in development.

3)

Promote the establishment of an efficient high-mix variable volume production system, and promote a subcontracted
production in areas outside of Mie prefecture, in order to avoid disaster risk as the production facilities are concentrated
there.

4)

Promote optimization of the supply chain and greater precision of the production plan, to the end of reducing losses fromthe disposal of inventories and improving inventory turnover.

5)

In order to advance our global vision, develop a system for fostering human resources capable of international businessactivities, executives with a keen sense of management and specialists.

-7-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Fiscal Year Ended December 20, 20124.
(1)

Consolidated Financial Statements
Consolidated Balance Sheets
Previous Consolidated Fiscal Year(As of December 20, 2011)(Thousand yen)
Current Consolidated Fiscal Year(As of December 20, 2012)

5,079,642
3,031,626
1,678,930
16,428526,193
203,837
91,566(11,616)
10,616,608

6,066,322
2,964,933
1,775,588
18,754522,000
179,190
113,719(40,939)
11,599,570

7,320,438(3,461,952)
3,858,485
4,107,016(3,182,584)
924,432
4,763,766
12,244
1,831,212(1,636,739)
194,473
9,753,401
512,138

7,354,033(3,741,699)
3,612,333
4,353,063(3,465,615)
887,448
4,763,766
85,294
1,767,460(1,586,871)
180,5889,529,431
526,433

1,017,033
430,616
291,661(28,772)
1,710,540
11,976,079
22,592,688

1,136,817
397,060
542,404(69,240)
2,007,041
12,062,905
23,662,476

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-8-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Fiscal Year Ended December 20, 2012

Previous Consolidated Fiscal Year(As of December 20, 2011)(Thousand yen)
Current Consolidated Fiscal Year(As of December 20, 2012)

419,740
1,448,203
1,016,927
45,73568,354
329,065
3,328,026

482,028
1,558,946
647,791
20,97871,204
316,840
3,097,790

11,612
37,200156,276
205,088
3,533,115

46,231
151,128
197,359
3,295,150

2,000,000
199,120
17,257,339(48,652)
19,407,806

2,000,000
199,120
18,476,098(51,035)
20,624,182(206,624)(141,609)(348,233)
19,059,573
22,592,688(129,363)(127,493)(256,856)
20,367,325
23,662,476

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
Provision for loss on guarantees
Other
Total noncurrent liabilities
Total liabilities
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-9-Milbon Co., Ltd. (4919) Consolidated Financial Results for the Fiscal Year Ended December 20, 2012(2)

Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income
Consolidated Statements of Earnings
Consolidated Fiscal Year Ended December 20, 2011 and 2012

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Company house defrayment income
Foreign exchange gains
Insurance cancellation margin of profit
Other
Total non-operating income
Non-operating expenses
Sales discounts
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Insurance proceeds
Gain on sales of investment securities
Reversal of allowance for doubtful accounts
Reversal of provision for loss on guarantees
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Provision of allowance for doubtful accounts
Loss on adjustment for changes of accounting standard for
asset retirement obligations
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

Fiscal Year Ended
December 20, 2011
(December 21, 2010 December 20, 2011)
20,526,742
6,906,735
13,620,006
9,827,881
3,792,125(Thousand yen)
Fiscal Year Ended
December 20, 2012
(December 21, 2011 December 20, 2012)
21,887,379
7,053,704
14,833,674
10,847,413
3,986,260

1,103
34,194
52,637
7,813
11,367
107,117

4,063
33,55557,711
12,11813,063
120,512342,744
10,661
353,405
3,545,837

371,176230
371,406
3,735,366

498,102
1,555
7,391
1,200
508,250-

5,269
73,123-

138,70212,64728,320-106,713
3,947,374
1,626,085
16,3591,642,445
2,304,928
2,304,928

151,3493,584,016
1,440,032
15,6791,455,711
2,128,304
2,128,304- 10 -

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Fiscal Year Ended December 20, 2012

Consolidated Statements of Comprehensive Income
Consolidated Fiscal Year Ended December 20, 2011 and 2012

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

Fiscal Year Ended
December 20, 2011
(December 21, 2010 December 20, 2011)
2,304,928- 11 -(Thousand yen)
Fiscal Year Ended
December 20, 2012
(December 21, 2011 December 20, 2012)
2,128,304(65,344)(41,547)(106,891)
2,198,037

77,260
14,11591,3762,219,681

2,198,037-

2,219,681-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Fiscal Year Ended December 20, 2012(3)

Consolidated Statements of Changes in Shareholders’ Equity
Fiscal Year Ended
December 20, 2011
(December 21, 2010 December 20, 2011)

Shareholders’ equity
Capital stock
Balance at the beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Capital surplus
Balance at the beginning of current period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the beginning of current period
Changes of items during the period
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Total changes of items during the period
Balance at the end of current period- 12 -(Thousand yen)
Fiscal Year Ended
December 20, 2012
(December 21, 2011 December 20, 2012)

2,000,000

2,000,000

2,000,000

2,000,000

199,120

199,120

199,120

199,120

15,779,971

17,257,339(827,030)
2,304,928(529)
1,477,367
17,257,339(909,531)
2,128,304(14)
1,218,758
18,476,098(38,254)(48,652)(12,710)2,312(10,398)(48,652)(2,481)98(2,382)(51,035)

17,940,836

19,407,806(827,030)
2,304,928(12,710)
1,782
1,466,969
19,407,806(909,531)
2,128,304(2,481)84
1,216,376
20,624,182

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Fiscal Year Ended December 20, 2012

Fiscal Year Ended
December 20, 2011
(December 21, 2010 December 20, 2011)
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total accumulated other comprehensive income
Balance at the beginning of current period
Changes of items during the period
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the beginning of current period
Changes of items during the period
Dividends from surplus
Net income
Purchase of treasury stock
Disposal of treasury stock
Net changes of items other than shareholders’ equity
Total changes of items during the period
Balance at the end of current period- 13 -(Thousand yen)
Fiscal Year Ended
December 20, 2012
(December 21, 2011 December 20, 2012)(141,280)(206,624)(65,344)(65,344)(206,624)

77,26077,260(129,363)(100,061)(141,609)(41,547)(41,547)(141,609)

14,115
14,115(127,493)(241,341)(348,233)(106,891)(106,891)(348,233)

91,376
91,376(256,856)

17,699,495

19,059,573(827,030)
2,304,928(12,710)
1,782(106,891)
1,360,078
19,059,573(909,531)
2,128,304(2,481)
84
91,376
1,307,752
20,367,325

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Fiscal Year Ended December 20, 2012

(4)

Consolidated Statements of Cash Flows
Fiscal Year Ended
December 20, 2011
(December 21, 2010 December 20, 2011)

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for sales returns
Increase (decrease) in provision for loss on guarantees
Increase (decrease) in provision for retirement benefits
Decrease (increase) in prepaid pension costs
Interest and dividends income
Insurance income
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss on retirement of noncurrent assets
Loss on adjustment for changes of accounting standard for
asset retirement obligations
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Payments for directors' retirement benefits
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Proceeds from sales of investment securities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments of loans receivableCollection of loans receivable
Payments into time deposits
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Other, net
Net cash provided by (used in) investing activities- 14 -(Thousand yen)
Fiscal Year Ended
December 20, 2012
(December 21, 2011 December 20, 2012)

3,947,374
1,014,887(5,488)3,079
26,660(1,200)10,848
10,461(35,297)(498,102)
4,891(1,555)73,1235,269

3,584,016
952,259
69,497
2,823(24,756)(37,200)
34,423(37,618)(2,208)
138,702

28,320-(176,206)

67,527(19,870)(41,654)
260,371
4,605,911
35,550(248,854)(1,234,683)
3,157,924(86,089)
61,22025,067
4,747,665
35,463(1,805,740)
2,977,387

9,208(305,345)(213,698)(5,670)20,046(1,211)(19,540)
22,447(2,762)
601,373(3,801)
101,045(687,773)(176,386)(10,441)
18,957(424,418)(23,606)
3,623(201,486)(5,023)(1,506,555)

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Fiscal Year Ended December 20, 2012

Fiscal Year Ended
December 20, 2011
(December 21, 2010 December 20, 2011)
Net cash provided by (used in) financing activities
Net decrease (increase) in treasury stock
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period(10,928)(825,874)(836,803)(16,361)
2,405,805
2,670,550
5,076,356- 15 -(Thousand yen)
Fiscal Year Ended
December 20, 2012
(December 21, 2011 December 20, 2012)(2,397)(908,333)(910,730)(3,160)556,9425,076,356
5,633,298