Consolidated Financial Results for the Six Months Ended June 30, 2024
[Japanese GAAP]
Name of registrant:
Milbon Co., Ltd.
Code No.:4919
URL https://www.milbon.com/en/
Representative:
Hidenori Sakashita, President & CEO
Inquiries:
Masahiro Murai, Managing Executive Director
Scheduled filing date for quarterly report: August 9, 2024
Scheduled starting date of dividend payments: August 23, 2024
Preparation of supplementary materials on the quarterly results: Yes
Holding of an explanatory meeting on the quarterly results: Yes (For institutional investors and analysts)

August 9, 2024
Tokyo Stock Exchange, Prime Market
TEL: +81-3-6478-6301(Amounts of less than one million yen have been omitted.)

1. Consolidated financial results for the Six months ended June 30, 2024 (January 1, 2024 - June 30, 2024)(1) Consolidated operating results
Net sales
Six months ended June 30, 2024%
8.0Million yen
3,178%
2.822,703

5.8

3,090

(19.2)

Six months ended June 30, 2024: 3,353 million yen [20.5%]

Six months ended June 30, 2024

(Percentages show year-on-year changes.)
Profit attributable to ownersof parent%
Million yen%
6.3
2,280
3.9

Ordinary income

Million yen
24,526Six months ended June 30, 2023
Note: Comprehensive income

Operating income

Million yen
3,324
3,129(24.4)

2,195(23.6)

Six months ended June 30, 2023: 2,783 million yen [(28.3)%]

Basic earnings per share Diluted earnings per shareYen
Yen
70.06
-

Six months ended June 30, 2023

67.48-(2) Consolidated financial position
Total assets
Million yen
56,805

As of June 30, 2024
As of December 31, 2023
(Reference)

EquityNet assets
Million yen47,791

53,391
As of June 30, 2024: 47,791 million yen

Equity ratio%
84.1

45,93286.0

As of December 31, 2023: 45,932 million yen

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

Year ended December 31, 2023

-

Yen
40.00

Year ending December 31, 2024

-

40.00

Year ending December 31, 2024
(forecast)
Note: Changes to latest dividends forecast: None

End of 3rd quarterEnd of fiscal year
Yen

Total-Yen
48.00

Yen
88.00

-48.0088.00

3. Consolidated operating results forecasts for the fiscal year ending December 31, 2024 (January 1, 2024 - December 31, 2024)(Percentages show year-on-year changes.)
Net sales
Million yen
Year ending December 31, 2024
50,620Note: Changes to latest performance forecast: None

Profit attributable toOperating income
Ordinary income
Basic earnings per shareowners of parent% Million yen% Million yen% Million yen%Yen
6.0
6,600
19.5
6,560
17.4
4,650
16.2
142.92

*Notes(1) Significant changes in subsidiaries during the period(changes in specified subsidiaries resulting in the change in the scope of consolidation): NoneExclude: 0 companies (Company name: )New: 0 company (Company name: )(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
1) Changes in accounting policies due to amendment to theaccounting standards, etc.
: None2) Changes in accounting policies other than those in 1) above: None
3) 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 shares)
2) Number of treasury shares at the end of the period
3) Average number of shares during the period

As ofJune 30, 2024
As ofJune 30, 2024
Six months ended
June 30, 2024

33,117,234 shares
554,946 shares
32,549,746 shares

As ofDecember 31, 2023
As ofDecember 31, 2023
Six months ended
June 30, 2023

33,117,234 shares
577,107 shares
32,531,869 shares*These financial statements are not subject to the review by a certified public accountant or an audit corporation.
*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.

○Accompanying Materials – Contents
1.Qualitative Information on Consolidated Results for the Current Period.................................................................................

2(1)Explanation of Operating Results............................................................................................................................. ...........

2(2)Explanation of Financial Position........................................................................................................................................

3(3)Explanation of Forward-Looking Statements Including Consolidated Operating Forecasts...............................................

3

2.Interim Consolidated Financial Statements and Main Notes.....................................................................................................

4(1)Interim Consolidated Balance Sheets...................................................................................................................................

4(2)Interim Consolidated Statements of Earnings and Interim Consolidated Statements of Comprehensive Income..............

6

Interim Consolidated Statements of Earnings
Six months ended June 30, 2023 and 2024................................................................................................................

6

Interim Consolidated Statements of Comprehensive Income
Six months ended June 30, 2023 and 2024................................................................................................................

7(3)Interim Consolidated Statements of Cash Flows.................................................................................................................

8(4)Notes Regarding Interim Consolidated Financial Statement...............................................................................................

9(Notes regarding going concern assumption)....................................................................................................................

9(Notes in case of any significant changes in shareholders’ equity)...................................................................................

9(Segment Information, etc.).................................................................................................................................... ...........

9(Significant subsequent events)...................................................................................................................................... ...

9-3-1.

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

During the current interim consolidated accounting period, the Japanese economy continued to gradually recover, supported
by improvements in employment and income, and it experienced increased inbound demand due to the depreciation of the yen.
However, price increases outpaced wage growth, showing some signs of weakness in parts of the economy. The outlook remains
uncertain due to the prolonged situations in Ukraine and the Middle East affecting energy prices, and the risk of a downturn inoverseas economies due to the slowdown in the Chinese economy.
In light of this situation, the third year of our Medium-Term Management Plan (2022-2026), Fiscal Year 2024, will see a fullscale promotion of the "Smart Salon" proposal, which expanded to 23 salons in 2023, aiming for 100 salons by the end of 2024.
Additionally, we will implement measures such as proposing a unique salon-exclusive total color service for both hair andeyebrows as well as a high-value color service for adults featuring our organic brand, Villa Lodola.
Interim consolidated net sales amounted to 24,526 million yen (an 8.0% increase year-on-year). This growth was primarily
driven by strong domestic performance of the premium haircare brand “Aujua” and new products from the cosmetics brands“iMPREA” and “IM.” Internationally, sales in South Korea saw a significant boost due to enhanced activities in the haircare andperm markets, alongside a recovery in hair coloring product sales. Consequently, the sales growth rate remained high at 16.5%(7.5% excluding exchange rate effects), contributing to overall overseas sales growth.
Operating income was 3,178 million yen (a 2.8% increase year-on-year) due to higher sales and controlled SG&A expenses.
Ordinary income was 3,324 million yen (a 6.3% increase year-on-year) mainly due to an increase in foreign exchange gains
caused by the depreciation of the yen, and interim profit attributable to owners of parent was 2,280 million yen (a 3.9% increaseyear-on-year).
Net sales by item and net sales by domestic and foreign country are as follows.
[Breakdown of consolidated net sales by product category](Unit: million yen)Six months ended June 30, 2023 Six months ended June 30, 2024
Product category
AmountRatio (%)

AmountRatio (%)

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

Haircare products

13,33958.814,682

59.9

1,342

10.1

Hair coloring products

8,238

36.3

8,346

34.0

108

1.3

Permanent wave products

714

3.1

799

3.3

85

12.0

Cosmetic products

267

1.2

566

2.3

299

111.9

Other1440.6

1310.5(12)(9.0)

22,703100.0

24,526

100.0

1,822

8.0

Total

[Breakdown of net sales into domestic and overseas sales](Unit: million yen)Six months ended June 30, 2023
AmountSix months ended June 30, 2024

Ratio (%)

AmountRatio (%)

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

Domestic sales

17,17575.6

18,367

74.9

1,192

6.9

Overseas sales

5,528

24.4

6,159

25.1

630

11.4

Total

22,703100.0

24,526

100.0

1,822

8.0-4-(2)(i)

Explanation on Financial Position
Assets, liabilities and net assets

Total assets at the end of the current interim consolidated accounting period increased by 3,413 million yen from the end of
the previous year to 56,805 million yen.
Current assets increased by 2,828 million yen from the end of the previous year to 29,006 million yen. The main factors forthe change were increases of 1,612 million yen in Cash and deposits, 874 million yen in Merchandise and finished goods, and431 million yen in Raw materials and supplies, and a decrease of 322 million yen in Notes and accounts receivable - trade.
Non-current assets increased by 585 million yen from the end of the previous year to 27,798 million yen.
Current liabilities increased by 1,570 million yen from the end of the previous year to 8,138 million yen. The main factors forthe change were increases of 725 million yen in Accounts payable - trade and 756 million yen in Income taxes payable.
Non-current liabilities decreased by 15 million yen from the end of the previous year to 876 million yen.
Net assets increased by 1,859 million yen from the end of the previous year to 47,791 million yen. The main factors for thechange were increases of 718 million yen in Retained earnings and 1,136 million yen in Foreign currency translation adjustment
due to the depreciation of the yen.
As a result, the equity ratio changed from 86.0% at the end of the previous year to 84.1%. Net assets per share based on thetotal number of shares outstanding at the end of the fiscal year was 1,467.69 yen, compared with 1,411.56 yen at the end of theprevious year.
(ii) Cash flows
Cash and cash equivalents ("funds") at the end of the current interim consolidated accounting period increased by 1,610
million yen from the end of the previous year to 12,902 million yen.
(Cash flows from operating activities)
Net cash provided by operating activities was 4,030 million yen. This was mainly due to the recording of 3,305 million yen inProfit before income taxes, 1,117 million yen in Depreciation, 986 million yen in Increase in inventories, 658 million yen in
Increase in trade payables, and 389 million yen in Income taxes paid.
(Cash flows from investing activities)
Net cash used in investing activities was 1,253 million yen. This was mainly due to Purchase of property, plant and equipmentof 1,031 million yen and Purchase of intangible assets of 186 million yen.
(Cash flows from financing activities)
Net cash used in financing activities was 1,559 million yen. This was mainly due to Cash dividends paid to shareholders of1,559 million yen.
(3)

Explanation on Forward-Looking Statements Including Consolidated Operating Forecasts
There is no change from the previous forecast (announced on February 14, 2024) for the full-year performance forecast.

-5-2.

Interim Consolidated Financial Statements and Main Notes(1)

Interim Consolidated Balance Sheets(Thousand yen)Previous fiscal year
As of December 31, 2023

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Merchandise and finished goods
Work in process
Raw materials and supplies
OtherTotal 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
Long-term loans receivable
Net defined benefit asset
Deferred tax assets
OtherAllowance 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 bonuses
Other
Total current liabilities
Non-current liabilities
Net defined benefit liability
Deferred tax liabilities
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities-6-Current 2nd quarter
As of June 30, 2024

11,337,201
5,345,669
6,939,156
36,8382,072,829
446,775
26,178,470

12,950,136
5,023,642
7,813,670
53,8322,504,343
661,236
29,006,863

9,260,764
3,314,046
6,461,904
995,352
967,392
20,999,461
1,930,204

9,357,308
3,410,472
6,469,913
1,246,314
922,810
21,406,819
1,834,793

1,312,251
1,120
511,056
909,850
1,595,544(46,087)
4,283,736
27,213,401
53,391,872

1,273,048
25,955507,877
1,013,772
1,764,403(27,790)
4,557,267
27,798,881
56,805,744

931,247
3,665,522
410,988581,530
978,650
6,567,940

1,657,238
3,573,238
1,167,896
607,247
1,132,470
8,138,092

14,620277
734,815
141,919
891,633
7,459,574

15,470307
737,970
122,420876,169
9,014,261

(Thousand yen)Previous fiscal year
As of December 31, 2023
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-7-Current 2nd quarter(As of June 30, 2024)

2,000,000
306,957
43,079,323(1,982,161)
43,404,119

2,000,000
298,667
43,797,787(1,906,038)
44,190,416(106,728)
2,373,812
261,0942,528,178
45,932,297
53,391,872(133,935)
3,510,019
224,981
3,601,066
47,791,482
56,805,744

(2) Interim Consolidated Statements of Earnings and Interim Consolidated Statements of Comprehensive Income(Interim Consolidated Statements of Earnings)(Interim Consolidated Accounting Period)(Thousand yen)Six months ended June 30, 2023 Six months ended June 30, 2024
(January 1, 2023
(January 1, 2024
- June 30, 2023)- June 30, 2024)
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating incomeNon-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Company house defrayment income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Share of loss of entities accounted for using equity
methodProvision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary income
Extraordinary losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent-8-

22,703,504
7,893,545
14,809,959
11,719,136
3,090,823

24,526,319
8,770,342
15,755,977
12,577,227
3,178,750

8,561
8,800

12,0768,763-

33,80638,275
1,428
11,83125,304
94,201

96,247
1,699
13,702
11,568177,865

52,489-3,444
55,934
3,129,090

20,10011,66931,7693,324,846

29,04529,0453,100,045
974,809(70,123)
904,685
2,195,360
2,195,360

19,057
19,0573,305,788
1,100,004(74,606)
1,025,398
2,280,390
2,280,390

(Interim Consolidated Statements of Comprehensive Income)(Interim Consolidated Accounting Period)(Thousand yen)Six months ended June 30, 2023 Six months ended June 30, 2024
(January 1, 2023
(January 1, 2024
- June 30, 2023)- June 30, 2024)
Net income
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
Interim Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of theparent
Comprehensive income related to non-controllinginterests-9-

2,195,360

2,280,390(52,117)624,525
15,920588,327
2,783,688(27,207)
1,136,207(36,112)
1,072,887
3,353,278

2,783,688

3,353,278--(3)

Interim Consolidated Statements of Cash Flows(Thousand yen)Six months ended June 30, 2023 Six months ended June 30, 2024
(January 1, 2023
(January 1, 2024
- June 30, 2023)- June 30, 2024)

Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Decrease (increase) in net defined benefit asset
Interest and dividend income
Share of loss (profit) of entities accounted for using
equity method
Foreign exchange losses (gains)
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other
SubtotalInterest and dividend income received
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments of loans receivableCollection of loans receivable
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
OtherNet cash provided by (used in) investing activities
Cash flows from financing activities
Net decrease (increase) in treasury shares
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 -3,100,045
1,102,221(191)(69,309)25,484(17,362)3,305,788
1,117,194(18,297)
19,046(48,856)(20,840)

52,489(33,806)(66,423)
29,045345,513(2,052,173)
434,804(946,811)
1,937,332
18,343(1,261,491)
694,184(95,773)
19,057362,209(986,181)
658,293
119,612
4,397,446
22,569(389,028)
4,030,987(1,199,276)(324,970)(34,300)
5,535(102,595)
15,267(11,281)(1,651,620)(1,031,859)(186,592)
180(60,714)
3,525
21,496(1,253,964)(1,161)(1,494,854)(1,496,015)

58(1,559,927)(1,559,868)

197,729

393,008(2,255,721)
12,258,237
10,002,515

1,610,163
11,292,078
12,902,241

(4) Note on Interim Consolidated Financial Statements(Notes regarding going concern assumption)
None(Notes in case of any significant changes in shareholders' equity)
None(Notes on Segment Information)
This information is omitted since the Group has a single segment of manufacture and sales of cosmetic products.
(Significant subsequent events)
None- 11 -