Financial Results for Q2 of FY2024(Ending December 31,2024)
Milbon Co., Ltd.
(TSE code ： 4919)
August 9, 2024

© Milbon Co., Ltd. All right reserved.

Agenda1. Consolidated Financial Results

P2

2. Financial Results by Region

P7

3. Progress in FY2024

P14

4. Appendix

P31

5. Outline of Milbon

P42This document has been translated from the Japanese original for reference
purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail.
© Milbon Co., Ltd. All right reserved.

2

Today’s Message• Both sales and profits increased, surpassing the initial plan. Domestic haircare products and South Korean business drove
growth. We are making steady progress toward achieving our full-year forecast.
• The gross profit margin is showing a recovery trend from the first to the second quarter, due to the mitigation of rising raw
material costs.
• Operating profit exceeded the plan due to favorable sales and expense deferrals.

• Domestic sales and profits increased. Growth was driven by haircare products, including Aujua, sufficiently offsetting thedelay in hair coloring products.
• Overseas sales and profits exceeded the plan. The weaker yen contributed to the sales increase. Additionally, strong
performances in South Korea and the USA offset the weak sales in China, where market conditions continued to deteriorate.
• The FY2024 full-year forecasts remain unchanged.
© Milbon Co., Ltd. All right reserved.

3

Consolidated Statement of Earnings
Both sales and profits surpassed the plan. Gross profit margin has
improved from 63.0% in 1Q to 64.2% in 2Q, due to the mitigation ofrising raw material costs.

(Unit: million yen)

FY2023
2Q YTD%
Total

FY2024
2Q YTD

%
Total

Gap
(%)

Gap

FY2024
2Q YTD Plan

Vs. Plan（％）

Net Sales

22,703100.0%

24,526100.0%

1,822

8.0%

23,964102.3%

Gross Profit

14,80965.2%

15,755

64.2%

946

6.4%

15,453102.0%

SG&A Expenses

11,71951.6%

12,577

51.3%

858

7.3%

12,845

97.9%

Operating
Income

3,090

13.6%

3,178

13.0%

87

2.8%

2,608

121.9%

Ordinary
Income

3,129

13.8%

3,324

13.6%

195

6.3%

2,561

129.8%

Profit Attributableto Owners of
Parent

2,195

9.7%

2,280

9.3%

85

3.9%

1,823

125.1%© Milbon Co., Ltd. All right reserved.

4

Factors in YoY Changes in Consolidated Operating Income
Operating income increased. The higher-than-expected revenue growth has offset thedecrease in the gross profit margin due to higher raw material cost, etc., and higher
Increase in
expenses.
Decrease ingross profit
due tohigher sales

gross profit
margin(243)

Personnel
expenses(388)+1,189(million yen)
Logistics
expenses

(124)

R&D
expenses

(77)
3,090

<Positive factors>
Forex and other factors +37<Negative factors>
Raw material costs (189)- of which, standard cost setting (135)
Product mix (91)FY’23
2Q YTD© Milbon Co., Ltd. All right reserved.

Rent
expenses(59)

IT
expenses

(56)

Other
expenses(176)

Marketingexpenses

3,178

+22

YoY +88
5FY’24
2Q YTD

Factors in Vs. Plan Changes in Consolidated Operating Income
Operating profit exceeded the plan due to favorable sales and some cost deferrals.

Increase ingross profit
due tohigher sales

Decrease ingross profit
margin(60)

Costcontainment
during 1Q

Deferral ofmarketingexpenses

Deferral of
R&D
expenses

+115

+118

(million yen)
Logistics
expenses

(58)

Other
expenses

3,178

(32)

+125

+362
2,608

FY’24 2Q
YTD Plan© Milbon Co., Ltd. All right reserved.

<Positive factors>
Forex and other factors +30<Negative factors>
Product mix (90)Marketing expenses andR&D expenses, etc.

Vs. Plan +570
6

FY’24 2Q
YTD Result

Agenda© Milbon Co., Ltd. All right reserved.

1. Consolidated Financial Results

P2

2. Financial Results by Region

P7

3. Progress in FY2024

P14

4. Appendix

P31

5. Outline of Milbon

P42

7

Net Sales and Operating Income by Region
Both domestic and overseas sales and profits exceeded the plan.
The weak yen boosted overseas sales growth.
(Unit: million yen)

Net Sales
Operating Income
Japan
Margin (%)
Net Sales
Operating Income
Overseas
Margin (%)
Net Sales
South Korea Operating Income
Margin (%)
Net Sales
Operating Income
China
Margin (%)
Net Sales
Operating Income
USA
Margin (%)
Net Sales*2
Operating Income
Other
Margin (%)

FY2023
2Q YTD17,175
2,411
14.0%
5,528
679
12.3%
2,286
621
27.2%
1,171
40
3.5%
778
(30)
(4.0%)
1,293
48
3.7%

FY2024
2Q YTD18,367
2,534
13.8%
6,159
643
10.5%
2,662
743
27.9%
1,211
77
6.4%
922
(71)
(7.8%)
1,362(105)(7.7%)*1 Figures are the rates of change in real terms on a local currency basis© Milbon Co., Ltd. All right reserved.

Gap

Gap (%)

1,192
123
－
630
(35)
－
376
121
－
40
37
－
144
(41)
－
69
(153)
－

6.9%
5.1%
－
11.4%
(5.3%)
－
16.5%
19.6%
－
3.5%
91.5%
－
18.5%
－
－
5.4%
(316.8%)－Actual gap
Rate*1 (%)
6.9%
－
－
2.8%
－
－
7.5%
－
－
(6.0%)
－
－
5.0%
－
－
1.1%
－
－

FY2024
2Q YTD Plan

Exchange
Rate
FY23 2Q

ExchangeRate
FY24 2Q

18,135
－
－
2,081
11.5%
5,828
－
－
526
9.0%
2,333 KRW
KRW
554
0.104 yen
0.113 yen
23.8%
1,222 RMB
RMB
87
19.54 yen
21.51 yen
7.2%
907 USD
USD(66)
136.54 yen
154.06 yen(7.3%)
1,364
－
－
(49)
(3.7%)*2 Thailand, Vietnam, Malaysia, Taiwan, Hong Kong, Turkey, Indonesia, Philippines, Singapore, and Germany

8

Financial Results by Region: Japan
Growth in haircare and cosmetics products led to increased sales andprofits, compensating for the slower progress in hair coloring products.
YoY Growth Rate of Sales by
Product Category*

Haircare sales, led by “Aujua,” remainrobust. “IM” brand’s new products
significantly boosted cosmetics sales.

Change in Sales
HaircareHair Coloring
Cosmetics% to Sales
HaircareHair Coloring
Cosmetics* Based on shipment value

Quarterly Net Sales (mil. yen)Domestic sales tend to be higher in thesecond quarter due to seasonal factors.

FY2024
2Q
2Q YTD+8.9%+9.0%(0.5%)+0.1%+40.4% +114.4%
2Q
2Q YTD
64.7%
63.1%
29.9%
30.9%
1.8%
2.9%

© Milbon Co., Ltd. All right reserved.

9

Quarterly Operating Income (mil. yen)Domestic profits tend to be higher in the second
quarter, driven by higher sales.

Financial Results by Region: Japan / Progress of Key Strategies
Key Strategies

Progress up to 2Q

Results and Outlook

Promoting Smart Salon

Members
SalonsEC Salesmilbon:iD

Smart Salon

Recovery of hair coloringproducts sales throughpromotion of high-value
hair color© Milbon Co., Ltd. All right reserved.

Number of
Smart Salons

FY’23
670,000
5,930
1,640 mil. yen

FY’24 2Q YTD
761,000
6,292
780 mil. Yen

FY’24 Plan
870,000
6,500
1,950 mil. yen

FY’23

FY’24 2Q YTD

FY’24 Plan

23

44

100

The number of Smart Salons is increasing, particularly in rural areas.
Existing Smart Salons have given high evaluations for the effectiveness inboosting product sales.
•

The number of touchpoints for “Villa Lodola,” our organic brand,
increased due to intensified sales activities. Going forward, we will
promote educational efforts for salons, with the aim of fostering
repeat business.

•

Despite our proposals linking hair and eyebrow color and enhancing
salon education, we have not fully countered the intensifying
competition. We will strengthen hair color branding for salon
customers and gradually work to revitalize sales.
10Financial Results by Region: South Korea
Sales have been robust, driven by strengthened haircare and perm sales
initiatives. Operating income surpassed the plan due to sales growthand cost containment.
YoY Growth Rate of Sales by
Product Category*

Growth in hair coloring products is showing
signs of improvement due to our activities
that capture changes in color trends.

Change in Sales
HaircareHair ColoringPerm% to Sales
HaircareHair Coloring
Perm* Based on local currency

Quarterly Net Sales (mil. yen)
Haircare and perm products are driving
growth, with sales consistently rising.

FY2024
2Q
2Q YTD+14.5%+17.1%+4.6%+2.9%+37.5%+35.6%
2Q
2Q YTD
23.0%
23.1%
71.3%
71.2%
4.8%
4.9%

© Milbon Co., Ltd. All right reserved.

11

Quarterly Operating Income mil. yen)

Although profit was expected to decrease due tohigher expenses for increased staff, etc., the delay inhiring and higher-than-expected sales led to anincrease in profit.

Financial Results by Region: China
We have been impacted by the deteriorating market environment, including declining
consumer confidence. In the second half of the fiscal year, we plan to recover byreassessing the salons on which we will focus our activities.

YoY Growth Rate of Sales by
Product Category*

Haircare performance remained steady due to theintroduction of brands, including “Global
Milbon,“ to salons. Conversely, reduced frequencyof hair coloring among salon customers has led todecreased sales of hair coloring products.

Change in Sales
HaircareHair Coloring% to Sales
HaircareHair Coloring* Based on local currency

Quarterly Net Sales (mil. yen)

Sales in the 1Q increased due to a rise in salon
customers before the Lunar New Year. However, adecline in salon customers following it led todecreased sales in the 2Q.

FY2024
2Q
2Q YTD(3.3%)+1.6%(33.7%)(17.4%)
2Q
2Q YTD
62.0%
58.5%
33.1%
35.6%

© Milbon Co., Ltd. All right reserved.

12

Quarterly Operating Income (mil.
yen)

Although profits decreased in the second quarterdue to lower sales, they increased in the first half
overall.

Financial Results by Region: USA
Sales remained steady due to the stable growth of mainstay haircare products.
Following our debut at one of the largest U.S. beauty trade fairs in June, we anticipate
further growth in the second half of the year.

YoY Growth Rate of Sales by
Product Category*

Haircare sales, led by “Global Milbon,” remained firm.
Although hair coloring product sales were lower due toan insufficient range of tones, we plan to launch
additional tones in the 3Q and strengthen educational
activities to encourage retention and increase repeat
business in salons.

Change in Sales
HaircareHair Coloring% to Sales
HaircareHair Coloring* Based on local currency

Quarterly Net Sales (mil. yen)

Sales slightly fell in the 4Q of last year due
to a decrease in shipments amid distributortransitions, yet they are showing signs ofrecovery.

FY2024
2Q
2Q YTD+4.8%+5.3%(6.2%)+7.8%
2Q
2Q YTD
85.9%
84.9%
8.9%
9.7%

© Milbon Co., Ltd. All right reserved.

13

Quarterly Operating Income (mil. yen)
Marketing expenses increased in the second quarterdue to participation in large trade fairs aimed at
expanding brand recognition.

Agenda© Milbon Co., Ltd. All right reserved.

1. Consolidated Financial Results

P2

2. Financial Results by Region

P7

3. Progress in FY2024

P14

4. Appendix

P31

5. Outline of Milbon

P42

14

Our Sales Composition Ratio
Haircare products, accounting for over 60% of our consolidated net sales, areperforming well both domestically and internationally.
Haircare Products(Approx. 60%)

Hair Coloring Products(Approx. 35%)

Others(Approx.
5%)Japan (Approx. 75%)
FY24H1 Net sales：¥18,367 mil. +6.9% YoY

Domestic Haircare Products(Approx. 48%)

Overseas Markets(Approx. 25%)
FY24H1 Net sales：¥6,159 mil. +11.4% YoY© Milbon Co., Ltd. All right reserved.

Overseas Haircare Products(Approx. 12%)15

Domestic Hair Coloring
Products(Approx. 23%)

Overseas Hair
Coloring Products(Approx. 12%)

Domestic
Others(Approx.
4%)Overseas
Others(Approx.
1%)

Domestic Market Environment
The domestic hair salon market is estimated to be growing moderately
and is showing a recovery trend from the slowdown caused by the
COVID-19 reclassification in May last year.
2020 ~ April 2023

May 2023～～June 2024

The overall market was growing
steadily, with the negative impact of
COVID-19 being more contained
than in other industries.

Market growth slowed due toincreased spending on travel anddining out following the COVID-19
reclassification.

The overall market is holding
steady.

Hair Color

The practice of wearing masks
diversified hair color trends andincreased the popularity of hairbleaching.

The decline in the number ofcustomers visiting hair salons led toa decrease in the consumption of
hair colorants in salons.

The hair colorant market is
experiencing a slowdown. The
anticipated long-term decline in
population and workforce will
present significant challenges tomarket growth.

Haircare

The increased need for haircare toaddress damage from hair coloring
drove the premiumization of haircare
products.

The popularity of premium-priced
haircare products continued.

The haircare market environment
remains favorable.

Hair
Salon
Market© Milbon Co., Ltd. All right reserved.

16

Financial Results in the Domestic Market
Haircare and cosmetics products drove sales growth, offsetting delaysin hair coloring products sales. The company is making steady progress
toward achieving full-year forecasts.
Progress in Net Sales and Operating Profit
FY2023(Unit: million yen) 2Q YTDNet Sales
17,175
Operating Profit
2,411
Margin (％)
14.0%

FY2024
2Q YTD18,367
2,534
13.8％

Gap
1,192
123
－

Gap
(%)
+6.9%
+5.1%
－

FY2024
Plan
38,6205,522
14.3%

Progress
Rate
47.6%
45.9%
－

Percentage Change and Composition of Sales by Product Category

Net Sales
HaircareHair Coloring
Perm
Cosmetics
Others

FY2023
2Q YTD+3.3%+5.7%(1.0%)(13.3%)+6.6%+77.5%

% to
Sales
－
62.2%
33.1%
2.7%
1.4%
0.6%

FY2024
2Q YTD
+6.9%
+9.0%
+0.1%
+7.5%
+114.4%(17.2%)

% to
Sales
－
63.1%
30.9%
2.7%
2.9%
0.4%

*The figures for percentage change and composition of sales by product category are based on shipment value.

© Milbon Co., Ltd. All right reserved.

17

Status of Domestic Haircare Products
Sales remain strong, centered on Aujua and Elujuda
Aujua

ElujudaFY24H1 Gross Sales in Japan +7.8% YoY

FY24H1 Gross Sales in Japan +24.5% YoY

The increase in the number of touchpoints andthe new product “Aujua Scalp Care Series
Presedia,” launched in February, drove thegrowth of the entire brand.

The new product “Elujuda Frizz Fixer,” launchedin March, was praised for its effectiveness inmaking frizzy hair more manageable and drove
the growth of the entire brand.

*The figures are based on shipment value.

© Milbon Co., Ltd. All right reserved.

18

Status of Domestic Haircare Products – Aiming for Mid- to Long-Term
Profitability Improvement

To address the deterioration of the product mix due to the lower sales
composition of hair coloring products, we will implement measures toenhance the profitability of haircare products.
Pricing Strategy
Price Revision of Existing Products

Starting in the first half of next year, we will revise the prices of certain mid-priced haircare
products in line with rising manufacturing costs.

Value-Based Pricing

We will continue to set prices for new products based on customer value and promote theturnover of new products.

Measures for Raw Materials
Reduction in the Use of Packaging Materials

Further promotion of refill specifications for professional in-salon treatments / standardization of
packaging materials

Unified Procurement of Raw Materials Across Three Global Factories

We are leveraging economies of scale through collaboration among manufacturing bases inJapan, Thailand, and China for procurement.
© Milbon Co., Ltd. All right reserved.

19

Smart Salon Strategy – milbon:iD
The milbon:iD membership is steadily advancing towards the milestoneof 1 million members. To foster further growth, we are intensifying
initiatives aimed at increasing the number of active purchasers.
Progress of the milbon:iD Membership（People）

Initiatives to Increase the Active Purchasers
Style Stock – Service will be launched in phases starting in Oct.

FY26 Target 1 million

Style Stock promotes ECpurchases by displaying
in-salon-used and recommended
home care products oneach customer’s milbon:iD My Page.
This information is entered by
the stylists.

FY24 Target 870,000

FY24H1 709,000

・・・ ・・・

Live Commerce
We aim to enhance milbon:iD member engagement and create
product purchase opportunities through streaming on both theofficial Milbon channel and each salon’s original channel.
© Milbon Co., Ltd. All right reserved.

20

Smart Salon Strategy – Brick-and-Mortar Smart Salons
The expansion of Smart Salons in various regions is progressing steadily
with the cooperation of salons that support our concept.

44 salons in JapanA Success Story from One Salon
Acquiring first-time retail customers through “DAGASHI”(as of June 30, 2024)“DAGASHI” lets customers choose andbuy a one-day supply of haircare
sachets, lowering the barrier topurchasing retail products in salons.
Converting samplers to full-size product buyers and fostering
repeat business through customer nurturing
Enhancing customer counseling throughdigital content and creating productpurchase opportunities with milbon:iD
increase touchpoints between retailproducts and salon customers.

Result: Product Sales Increased*Please refer to this link for the latest Smart Salon locations (Japanese only) :https://www.milbon.co.jp/fyb-magazine/smartsalon/© Milbon Co., Ltd. All right reserved.

15％ Products Sales Increase(compared to the same period last year)
21Status of Domestic Hair Coloring Products
The growth rate of hair coloring products is currently below expectations.
Strengthening fashion color products is essential for recovery, and we will graduallywork to improve the situation towards next year.
Sales Composition Ratio ofDomestic Hair Coloring Products

Sales of grey color increased 7%
YoY for the first half

Sales of fashion color decreased 4% YoY
for the first half••

Despite implementing strategies such as
coordinated proposals with eyebrow colors,
sales of our mainstay product “Ordeve
Addicthy” have declined due to heightenedcompetitive pressure.

•

We are initiating comprehensive reforms infashion colors, focusing on R&D, sales
activities, and branding.

•Sales of “Ordeve Crystal High Bright,”
launched last year to align with thetrend of brighter grey colors, havecontinued to perform well.

Grey Color Fashion color
Approx. 40％ Approx. 60％

Sales of “Villa Lodola Color,” which
focuses on darker tones, havestabilized. We plan to strengthen
educational efforts to revitalize sales.

*The figures are based on shipment value.

© Milbon Co., Ltd. All right reserved.

22

Current Status of Overseas Market
Our overall overseas business is making solid progress towards
achieving the full-year forecast, although we have been impacted by adeteriorating market environment in China.
Net sales ¥2,662 mil.
+16.5% YoY

FY24H1
Overseas Sales

Net sales ¥1,211 mil.
+3.5% YoY

(Progress Rate
51.3%)Net sales ¥922 mil.
+18.5% YoY¥6.15bn

23

Progress rate
49.3%

Progress rate
50.9%

Net sales ¥1,362 mil.
+5.4% YoY

© Milbon Co., Ltd. All right reserved.

Progress
rate
55.7%

Progress rate
46.3%

（million yen）

Long-Term Growth Story for Overseas Markets
Our mid- to long-term milestone is to achieve the No.1 position in Asia,
excluding Japan, where black hair is predominant.
Phased Growth in the U.S.
and European Markets

No. 1 in Asia,
excluding Japan

Growth in Market Sharein South Korea

Expanding influence in East
Asia and ASEAN bystrengthening our market
presence in South Korea.

Promoting haircare products
based on a strong market
presence in hair coloring© Milbon Co., Ltd. All right reserved.

24

Expanding market presence
through the prominence of
hair color after establishing afoundation in haircare

Enhancement of ESG External Evaluation Agency’s Ratings
Our enhanced sustainability efforts have improved our FTSE ESG score.
We also aim to improve ratings from other agencies throughappropriate initiatives and disclosures.
2021
FTSE

MSCI

CDP

Ecovadis

1.1/5.0

CCC－－© Milbon Co., Ltd. All right reserved.

2022
1.5/5.0

B

D

Silver2023

2024

2.3/5.0

3.5/5.0

FTSE Blossom
Japan Sector
Relative Index

FTSE Blossom Japan Index/ Sector Relative Index

B

B

MSCI Empowering
Woman Index

C

Gold

MSCI Empowering Woman Index (WIN/
Select)Future Outlook
We will continue to enhance
our ratings through appropriate
disclosures.
We will enhance our disclosures on“Chemical Safety” and “Packaging
Materials & Waste.” Having
completed our Scope 3 emissions
disclosure, we expect to improve ourratings

To be published at the end of 2024

We will enhance our disclosures on“Water” and promote initiatives on“Biodiversity” to improve our ratings.

To be published at the end of 2024

We will continue to enhance
our ratings through appropriate
disclosures.

25

Status of ESG Index Inclusion
We have been designated as a constituent of several ESG indices by the
GPIF. We are included in the FTSE Blossom Japan Index from this fiscal
year.
ESG Indices We Are Included inSince 2023

THE INCLUSION OF Milbon Co., Ltd. IN ANY MSCI INDEX, AND THE USE OF
MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO
NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF
Milbon Co., Ltd. BY MSCI OR ANY OF ITS AFFILIATES.
THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE
MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF
MSCI OR ITS AFFILIATES.

© Milbon Co., Ltd. All right reserved.

Since 2024

FTSE Blossom Japan Index Series: https://www.lseg.com/en/ftse-russell/indices/blossom-japan

26

Outlook for After 3Q

Outlook for After 3Q

Japan

•
•
•

Sales
Over
seas

Profits

Haircare products are expected to grow steadily due to consistent demand.
The efforts regarding hair coloring products are expected to have some positive effects, but sales are notanticipated to meet our expectations.
Strong performance in haircare and cosmetics products, including new eyebrow products, is expected tooffset delays in hair coloring products.

••

The negative impact of the deteriorating market environment in China is expected to persist.
We will offset the negative impact from China with strong growth in South Korea and the US, especially inhaircare products.

••

The gross profit margin is recovering due to the alleviation of soaring raw material costs.
We will utilize our expenses as planned.

© Milbon Co., Ltd. All right reserved.

27

Outlook for Full-year Forecasts
Full-year forecasts remain unchanged. We have made solid progress
toward achieving them.

FY2023（unit: million yen）

FY2024
Plan

Gap
(%)

Gap

FY2024
2Q YTD

Progress
Rate（％）

Net Sales

47,762

50,620

2,857

6.0%

24,52648.5%

Gross Profit

32,40064.0%25,800
51.0%

2,874

9.7%

1,799

7.5%

15,75564.2%
12,577
51.3%

48.6%

SG&A Ratio（％）

29,52561.8%
24,00050.2%

Operating
Income

5,525

6,600

1,074

19.5%

3,178

48.2%

13.0%
6,560
13.0%

973

17.4%

13.0％
3,324
13.6%

50.7%

Margin（％）

11.6%
5,586
11.7%

Profit Attributable to
Owners of Parent

4,001

4,650

648

16.2%

2,280

49.0%

Margin（％）

8.4%

9.2%

Margin（％）
SG&A Expenses

Margin（％）
Ordinary Income© Milbon Co., Ltd. All right reserved.

9.3%
28

48.7%

Revision of the Medium-Term Management Plan (2022-2026)
Sales are progressing well, but profit growth is delayed. We will disclose
specific figures on the full-year financial results announcement next
February.
Progress of Sales and Profits

Cost Issues to Address(million yen)

原材料
価格高
騰
Manufacturing
cost

Decline in
Profit Margin
原材料
価格高
騰
Logistics© Milbon Co., Ltd. All right reserved.

29

原材料
価格高
Productivity
騰(Personnel)

Return to Shareholders: Dividend
The interim dividend for FY2024 is set at 40 yen per share, with a projected year-end
dividend of 48 yen. During the current Medium-Term Management Plan period, we
will adhere to the policy of maintaining an annual dividend of at least 88 yen and will
not reduce dividends, even after this period.

¥68© Milbon Co., Ltd. All right reserved.

¥86

¥88

30

Agenda1. Consolidated Financial Results

P2

2. Financial Results by Region

P7

3. Progress in FY2024

P14

4. Appendix

P31

Factors in YoY Changes in Consolidated Operating Income (Quarterly Basis)
Factors in vs. Plan Changes in Consolidated Operating Income (Quarterly Basis)

Consolidated Net Sales and Sales Ratio by Product Category
Status of Main Brands
Sales Growth and Sales Ratio by Category in Japan and Overseas(Local Currency Basis)

P38

Status of Capital Expenditures, etc.
The number of Field Persons (FP)

P40
P41

5. Outline of Milbon© Milbon Co., Ltd. All right reserved.

P32
P33
P34
P35

31

P42

Factors in YoY Changes in Consolidated Operating Income (Quarterly Basis)
The gross profit margin is improving on a QoQ basis due to cost
reduction initiatives.
Increase ingross profit
due tohigher sales

Increase ingross profit
marginPersonnel
expenses

+23
(242)

+427

（百万円）

Logistics
expenses(69)

IT
expenses

(45)

1,895

FY’23
2Q
© Milbon Co., Ltd. All right reserved.

R&D
expenses(41)

YoY (54)
32

Rent
expenses

(29)

Other
expenses(127)

Marketingexpenses

+49

1,841

FY’24
2Q

Factors in Vs. Plan Changes in Consolidated Operating Income (Quarterly Basis)

Although a decrease in operating income was anticipated due to thesoaring costs of raw materials, the actual results exceeded expectations
with an increase in sales and deferral of expenses.

1,733

Increase ingross profit
due tohigher sales

Increase ingross profit
marginDeferral of
R&D
expenses(million yen)

Deferral ofmarketingexpenses

Deferral of
expenses

+115

(145)

+118

Logistic
costs

Other
expenses

(8)

(77)

1,841

+60

+45

FY’24 2Q
Plan
© Milbon Co., Ltd. All right reserved.

Vs. Plan +10833

FY’24 2Q
Result(Appendix) Consolidated Net Sales and Sales Ratio by Product Category(Unit: million yen)

Net Sales
HaircareHair Coloring
Perm
Cosmetics
Others% to Sales
HaircareHair Coloring
Perm
Cosmetics
Others1Q
10,340
5,969
3,922
301
126

2Q
12,362
7,370
4,315
413
140

FY2023
3Q
11,446
6,593
4,193
369
154

20

123

136

137

418

73

57

131

57.7%
38.0%
2.9%
1.2%
0.2%

59.6%
34.9%
3.4%
1.1%
1.0%

57.6%
36.6%
3.2%
1.4%
1.2%

61.9%
33.2%
2.8%
1.1%
1.0%

59.4%
35.5%
3.0%
1.2%
0.9%

58.0%
35.1%
3.1%
3.2%
0.6%

61.6%
33.0%
3.5%
1.5%
0.4%

59.9%
34.0%
3.3%
2.3%
0.5%

© Milbon Co., Ltd. All right reserved.

4Q
13,612
8,421
4,522
380
149

YTD
47,76228,355
16,953
1,463
571

1Q
11,508
6,670
4,044
350
369

2Q
13,017
8,012
4,301
448
197

34

FY2024
3Q

4Q

YTD
24,526
14,682
8,346
799
566

(Appendix) Status of Haircare Products by Main Brands
Haircare - Aujua

Haircare – Global Milbon

Robust sales centered on new scalp care product “Presedia”.
Touchpoints continued to expand in Japan and South Korea.

(Unit: mil. yen)

FY2023
2Q
2Q YTD

Gross Sales
Japan
South KR
(Unit: salons)

2,877
2,807
70

FY2024
2Q
2Q YTD

4,999
4,864
135

FY2023

Number ofSalonsJapan
South KRNew Products

Sales growth for the brand is being propelled by strong performancein overseas markets, especially in the USA.

3,123
3,022
100

(Unit: mil. yen)

Gross Sales
Japan
USA
China
South KR
Other

5,435
5,244
190

FY2024
6,844

7,311

6,556
288

7,000
311

(Unit: salons)

Number ofSalons

Japan
USA
China
South KR
Other

Aujua Scalp Care Series Presedia (Debut on February 10)(Unit: mil. yen)

FY2024
2Q YTD316

FY2024
Target700

FY2023
2Q
2Q YTD
1,618
859
355
125
54
223

2,931
1,563
638
220
99
407

FY2023

FY2024
2Q
2Q YTD
1,777
855
457
164
71
227

3,322
1,580
813
305
138
483

FY2024
13,381

23,707

10,188
0
430
1,022
1,741

10,555
9,618
688
1,134
1,712

*Data for the number of salons in USA for the period from October to December
became inaccessible due to the changeover of distributors, therefore, the figures ofGross sales
FY2023 displayed exclude USA.
* Sales figures are based on shipment value. The number of the salons is calculated based on the past year's shipments for both Japan and overseas.

© Milbon Co., Ltd. All right reserved.

35

(Appendix) Status of Hair Coloring Products by Main Brands
Hair coloring – Ordeve Addicthy

Hair coloring – Villa Lodola Color

In Japan, despite proposals linked with eyebrow mascara, shipment
volumes decreased due to intensified competition.

(Unit: mil. yen)

Gross Sales
Japan
Overseas

FY2023
2Q
2Q YTD
1,782
1,520
262

3,338
2,785
553

The rollout in Hong Kong began in April. In Japan, sales andeducational efforts by Field Persons were intensified from April,leading to an increase in touchpoints.

FY2024
2Q
2Q YTD
1,682
1,400
282

(Unit: mil. yen)

Gross Sales
Japan
Overseas

3,173
2,593
579

(Unit: salons)

Number ofSalonsHair coloring – Sophistone

Continued revenue growth due to strengthened sales and education
activities for distributors and salons in the US.

(Unit: mil. yen)

Gross Sales

FY2023
2Q
2Q YTD
33

65

Japan
Overseas

FY2024
2Q
2Q YTD47

91* Sales figures are based on shipment value.

© Milbon Co., Ltd. All right reserved.

36

FY2023
2Q
2Q YTD
257
257
0

509
509
0

FY2023

FY2024
2Q
2Q YTD
288
277
11

545
530
14

FY2024
9,702

10,5739,702
010,52548

(Appendix) Status of Cosmetics by Main Brands
Cosmetics – IM

Cosmetics – Imprea

New color mascara products, promoted in conjunction with hair color,performed well and exceeded annual plan.

Sales decreased due to increased focus on cosmetics-related
activities within “IM” brand.
(Unit: mil. yen)

Gross Sales(Unit: salons)

FY2023
2Q
2Q YTD148

FY2024
2Q
2Q YTD279

FY2023

Number ofSalons147(Unit: mil. yen)

FY2023
2Q
2Q YTD

Gross Sales

268

0

FY2024
2Q
2Q YTD
059

330

FY2024
1,970

2,055

New Products

New Products

Imprea Cleansing Oil (Debut on February 10)

IM Brow & Lush Color Mascara (Debut on February 10)(Unit: mil. yen)

Gross Sales

FY2024
2Q YTD25

FY2024
Target(Unit: mil. yen)

Gross Sales

55

FY2024
2Q YTD259* Sales figures are based on shipment value. The number of the salons is calculated based on the past year's shipments for both Japan and overseas.

© Milbon Co., Ltd. All right reserved.

37

FY2024
Target150

(Appendix) Sales Growth and Sales Ratio by Category in Japan and Overseas (Local Currency Basis)
Japan
Net Sales
HaircareHair Coloring
Perm
Cosmetics
Others% to Sales
HaircareHair Coloring
Perm
Cosmetics
OthersSouth Korea
Net Sales
HaircareHair ColoringPerm% to Sales
HaircareHair Coloring
Perm
Others

1Q
+6.0%
+9.5%
+1.9%
(6.5%)(4.2%)(13.2%)

2Q
+0.7%
+2.9%
(3.5%)(17.1%)+18.4%+133.3%

FY2023
3Q
+3.0%
+4.0%
(1.6%)+7.6%+25.5%+150.8%

61.2%
34.7%
2.3%
1.5%
0.3%

63.0%
31.8%
3.0%
1.3%
1.0%

61.0%
33.5%
2.8%
1.6%
1.1%

1Q
+10.9%+14.4%+9.2%+28.0%

2Q+4.8%+13.5%+1.4%+28.1%FY2023
3Q
+1.2%
+1.1%
(0.0%)+18.2%

4Q+13.7%+29.0%+7.5%+59.1%

YTD+7.4%+13.9%+4.3%+32.4%

1Q+6.5%+20.1%+1.1%+33.6%

2Q+8.4%+14.5%+4.6%+37.5%

20.7%
74.9%
4.0%
0.4%

21.7%
73.9%
3.8%
0.6%

21.4%
73.6%
4.2%
0.8%

23.3%
71.6%
4.6%
0.5%

21.8%
73.5%
4.1%
0.6%

23.3%
71.1%
5.0%
0.6%

23.0%
71.3%
4.8%
0.9%

4Q
+3.1%
+4.6%
+0.3%
(7.0%)(12.7%)+102.1%

YTD
+3.1%
+4.9%
(0.8%)(7.0%)+4.8%+104.8%

1Q
+9.3%
+9.1%
+0.8%
+2.9%
+197.6%+60.8%

2Q
+5.0%
+8.9%
(0.5%)+10.4%+40.4%(35.0%)

65.5%
30.3%
2.0%
1.3%
0.9%

62.9%
32.4%
2.5%
1.4%
0.8%

61.2%
32.1%
2.2%
4.1%
0.4%

64.7%
29.9%
3.1%
1.8%
0.5%

* The figures for Japan are based on shipment value. The overseas figure are based on local currency.

© Milbon Co., Ltd. All right reserved.

38

FY2024
3Q

4Q

YTD
+6.9%
+9.0%
+0.1%
+7.5%
+114.4%(17.2%)
63.1%
30.9%
2.7%
2.9%
0.4%

FY2024
3Q

4Q

YTD
+7.5%
+17.1%+2.9%+35.6%
23.1%
71.2%
4.9%
0.8%

(Appendix) Sales Growth and Sales Ratio by Category in Japan and Overseas (Local Currency Basis)

China
Net Sales
HaircareHair ColoringPerm% to Sales
HaircareHair Coloring
Perm
OthersUSA
Net Sales
HaircareHair ColoringPerm% to Sales
HaircareHair Coloring
Perm
Others

1Q(2.7%)+11.0%(14.0%)(23.5%)

2Q+22.4%+35.7%+8.4%+25.8%FY20233Q(6.1%)(7.3%)(5.2%)
+0.4%

54.8%
39.3%
5.9%
0.0%

53.5%
41.7%
4.8%
0.0%

53.9%
40.0%
6.1%
0.0%

1Q
+13.5%+15.5%+10.6%(1.5%)

2Q+19.3%+18.1%+27.0%+26.4%FY20233Q+56.0%+64.9%+59.8%+25.7%

4Q(15.9%)(15.2%)(4.5%)(31.8%)

YTD+13.9%+15.7%+18.8%
+1.0%

1Q
+8.5%
+6.0%
+25.9%(19.6%)

2Q
+2.2%
+4.8%
(6.2%)(21.3%)

85.7%
9.1%
4.2%
1.0%

83.8%
9.7%
4.8%
1.7%

87.3%
7.8%
3.3%
1.6%

85.6%
9.6%
3.6%
1.2%

85.6%
9.0%
4.0%
1.4%

83.7%
10.6%
3.1%
2.6%

85.9%
8.9%
3.7%
1.5%

© Milbon Co., Ltd. All right reserved.

4Q
+5.8%
+15.9%(8.5%)(0.7%)

YTD+3.8%+12.0%(5.1%)(3.8%)

1Q
+4.3%
+6.2%
(0.6%)+19.0%

2Q(16.5%)(3.3%)(33.7%)(14.5%)

61.9%
31.7%
6.4%
0.0%

55.8%
38.4%
5.8%
0.0%

55.8%
37.5%
6.7%
0.0%

62.0%
33.1%
5.0%
0.0%

39

FY20243Q

4Q

YTD(6.0%)+1.6%(17.4%)
+4.0%
58.5%
35.6%
5.9%
0.0%

FY2024
3Q

4Q

YTD
+5.0%
+5.3%
+7.8%
(20.6%)
84.9%
9.7%
3.4%
2.0%

(Appendix) Status of Capital Expenditures, etc.

FY2020(Unit: million yen)

FY2021

FY2022

FY2023

FY2024
2Q YTD

FY2024
Plan

Capital Expenditures

1,917

4,644

4,097

3,151

929

4,258

Depreciation andAmortization

1,562

1,777

2,026

2,213

1,117

2,404

Amount

1,581

1,741

2,074

2,334

1,139

2,649

% to Sales

4.4

4.2

4.6

4.9

4.6

5.2

R&D exp.

FY2024 CAPEX Main Items
Sales offices, studios

Production system

Digital•Establishment and maintenanceof business locations(Expansion of Seoul Office)HR Development Center•

Technical Center

Others•Yumegaoka Factory(Machinery and equipment)
Thailand Factory (Machinery40
and equipment)••© Milbon Co., Ltd. All right reserved.

•

milbon:iD•

Education:iD•

Smart Salon (DigitalMarketing)Internal infrastructure
Production equipment••

(Appendix) The number of Field Persons (FP)The number of FPs increased moderately in each country.
The Number of FPs by Country

FP Recruitment and Training Status in Japan

Upper column: Average number of FPs during the period (persons)Lower column: Net sales per FP (million yen)

Japan
South Korea

China
USA
Other*FY2021
328.2

FY2022335.4

FY2023350.2

FY2024
363.0

102

105

104

ー

26.0

32.8

33.4

33.0

130

126

141

ー

29.8

31.6

34.3

34.3

72

66

65

ー

13.2

13.0

13.2

15.0

68

102

123

ー

36.0

36.2

38.2

39.5

41

63

70

ー

*Thailand, Vietnam, Malaysia, Taiwan, Hong Kong, Turkey, Indonesia, Philippines, Singapore, Germany© Milbon Co., Ltd. All right reserved.

41

9 FPs

joined in October 2023 and are currently
on-site OJT

45 FPsjoined in April 2024 and are in training(The above 54 FPs are not included in the left chart.)

Agenda© Milbon Co., Ltd. All right reserved.

1. Consolidated Financial Results

P2

2. Financial Results by Region

P7

3. Progress in FY2024

P14

4. Appendix

P31

5. Outline of Milbon

P42

42

(Appendix) Outline Of Milbon
Milbon is a cosmetics manufacturer that produces and sells haircare
products including treatments and hair coloring products exclusively tohair salons.
Cosmetics market
Professional haircosmetics market
Domestic market size:
Approx. 200 billion yen*Domestic market
share
Approx. 18%*Source: Fuji Keizai(2023) haircare products only
© Milbon Co., Ltd. All right reserved.

43

(Appendix) Outline Of Milbon: Business Model
We have established solid trust with hair salons by offering our products andservices that contribute to enhance their sales and profits.
The distribution flow of
products and services

Our sales personnel, Field Person, identifies
salon tasks, provides educational support, andoffers products and beauty techniques.

Distributors

Hair salons

Product development that incorporates thetechniques of top-class hairstylists, who are
overwhelmingly supported by their customers.
*We sale product directly to hair salons in some overseas area.
© Milbon Co., Ltd. All right reserved.

44

Customers(Appendix) Outline Of Milbon: Three Key Points of Our Business Model
Consistent focus on hair salons and hair stylists
Since our founding in 1960, we have sustained continuous growth by steadfastly
narrowing our business focus to hair salons, with the strategy of increasing sales andprofits of hair salons at the forefront of all its initiatives.

Field Person (FP) System – Sales and educational support to hair salonsThis is our unique sales and education system that contributes to greater sales and profit for hair salons. Our Field
Person (FP), who acquire beauty techniques through an intensive 9-month training program after joining thecompany, identifies areas for improvement for each hair salon. FPs support these salons by providing not justproducts, but also additional value through associated beauty techniques.

TAC Product Development System –Standardization of top-class hair stylist’s techniqueThis system seeks out hair stylists with exceptional skills and knowledge, encourages the sharing of their expertiseand techniques, and enables our researchers to scientifically decode this knowledge for product development. We
aim to commercialize sophisticated beauty techniques in a way that can be broadly replicated across general hairsalons.

© Milbon Co., Ltd. All right reserved.

45

(Appendix) Outline Of Milbon: Our Growth Trajectory
Steady growth through business expansion in Japan and overseas
Net Sales and Operating Income(billion yen)

Launched “Smart Salons”
Launched “milbon:iD”, our official online stores(billion yen)

Composition of Sales byCountry (FY2023)

Launched “Imprea”, salon-exclusive cosmetics brandEstablished South Korea subsidiarycompany

Launched “Global Milbon”,
a haircare brandLaunched “Aujua”,
a haircare brandEstablished China
subsidiary company

47.7

EstablishedUS subsidiarycompany

billion yen* FY2017 is an irregular accounting period due to a change in the fiscal year-end date.
* The “Accounting Standard for Revenue Recognition,” etc., has been adopted since FY2019.

© Milbon Co., Ltd. All right reserved.

46

(Appendix) Outline Of Milbon: Our Main Products
Haircare and hair coloring products are the mainstay of our sales. In
recent years, we have expanded our business to include cosmetics, etc.

Composition of Sales by Product Category
Cosmetics (only available in Japan)
Haircare(FY2023)
Products sold for retail in hair salons

Products sold for retail in hair salonsand items used for in-salon treatments

Main Brand
ImpreaMain Brand

IM

Hair coloring

Items used for in-salon hair coloring

Aujua (Only available in Japan and South Korea)

47.7

Global Milbon

billion yen

Main Brand
Ordeve Series

ElujudaVilla Lodola Color

Sophistone(Hair color brand exclusive forEurope and North America)© Milbon Co., Ltd. All right reserved.

47

(Appendix) Outline Of Milbon: Domestic Hair Salon Market Conditions
Hair salons have the potential for further growth despite the mediumto long term decrease in the number of customers due to declining
birth rate and aging population.
Community Characteristics Unique to Salons

Challenges and Growth of Aging Population with Low Fertility

Although the number of customers at hairsalons is expected to decrease over the
medium to long term, the promotion ofpremium-priced services and retail products is
expected to drive further improvements insalon productivity and customer spend.
Numberof staff

A visit to a hair salon is necessary to receive its
services. Additionally, hair salons hold a place as
an indispensable part of people’s lives.

Anticipated to decrease
Numberover the mid to long termofdue to declining birthrate customers＝
Staff
productivity

Hair salon
sales
Room forfurther growth＝

The need for inperson service
Average rate of use
in the past year

The need for repeated,periodic visits

Women

Women

80.3%
Men

Spend percustomer

33.9%

Average number ofvisits per year

4.32times
Men

5.25times

The need for an
extended stay
Average timespent per visit
Women

84min
Men

52min

Source: Beauty Industry Census, First Half of FY2023 (Hair Salons), Recruit Co., Ltd.

© Milbon Co., Ltd. All right reserved.

48

(Appendix) Outline Of Milbon: Our Recent Initiatives in Japan, milbon:iD

We launched milbon:iD, an EC platform, in 2020 to support productivity
enhancement of hair salons. This platform allows salon customers topurchase retail products online.
How milbon:iD Works – Revenue is attributed to salons in the BtoBtoC sales channel
Sales
Payment

Payment
Distributors

ChargeChargeRegisteredsalons=Ordermilbon:iD

Registeredmembers

Product Shipment
Progress of milbon:iD (as of the end of FY2023)

Number of registered salons

5,930© Milbon Co., Ltd. All right reserved.

Number of registered members

670,00049

EC sales (Gross sales)

1,640 million yen

(Appendix) Outline Of Milbon: Our Recent Initiatives in Japan, Two Major Strategies
We aim to maximize the inherent value of hair salons, which enables frequent andextended in-person visits, by enhancing our Smart Salon concept and broadening therange of products available for in-salon purchase.
Smart Salon Strategy－
Enhancing the Salon Customer Experience

Lifetime Beauty Care Strategy－
Broadening the Range of Products

The Smart Salon system is implemented in hair salons thathave embraced the concept. It aims to enhance salon
productivity by eliminating the challenges customers facewhen purchasing retail products.

We collaborate with other companies to extend salon
services and product sales beyond haircare to include
skincare and beauty health care.

Styling station toprovide face-to-faceconsultation

Cosmetics (Collaborated with KOSÉ)Tester station toraise productawareness and offer
trial opportunities

Beauty Supplements

Generating synergies through the
integration of three sales areas
EC service milbon:iD to enhance
convenience of products purchase

Beauty Equipment (Collaborated with Panasonic)

See our corporate website for more details.:
https://www.milbon.com/en/ir/management/business.html© Milbon Co., Ltd. All right reserved.

50

(Appendix) Outline Of Milbon: Status of Overseas Expansion
We conduct business across 14 countries and regions, and have recently
expanded our international bases for R&D as well as production.

Milbon Europe
GmbH
Istanbul Main Branch

MilbonTrading(Shanghai)
Co.,Ltd.

MILBON VIETNAM
CO., LTD.
MILBON(THAILAND)
CO., LTD.
MILBON MALAYSIA
SDN. BHD.

Milbon Korea
Co., Ltd.
Milbon Co., Ltd.
Taiwan Representative OfficeHong Kong Representative Office
Philippines Representative Office
Indonesia Representative Office

R&D: Japan, Thailand, China, US
Production: Japan, Thailand, China

MILBON SINGAPORE
PTE. LTD.

© Milbon Co., Ltd. All right reserved.

MILBON USA, INC.

51

(Appendix) Outline Of Milbon: Our Three Major Overseas Countries
Three major countries, South Korea, China, and the US account fornearly 80% of overseas sales
South Korea

China

US

Our educational initiatives focused on haircoloring are highly regarded, contributing
to a strong market presence in South Korea.
In recent years, we have been strengthening
our haircare business, working to transform
ourselves into a comprehensive
manufacturer.

Subsequent to COVID-19, activities for hairsalons have gained traction amid market
changes, such as decreased frequency of
customer visits to salons, leading to asustained increase in our sales. The local
factory commenced operations in 2022.

We have enjoyed rapid growth triggered bylaunch of the Global Milbon haircare line andshift in sales structure (from direct sales to
distributor ship). With the launch of hair coloringproducts exclusive for the European and North
American markets, further growth is anticipated.

(million yen)

Sales in South Korea© Milbon Co., Ltd. All right reserved.

4.7

billion yen(million yen)

Sales in China

52

2.2

billion yen(million yen)

Sales in the US

1.6

billion yen

(Appendix) Outline Of Milbon: Other Countries and Regions
Our sales are particularly significant in East Asia and ASEAN, and wehave recently expanded into Europe.
East Asia (Taiwan and HongKong) 36.6%

Europe and Middle East
8.4%

FY2023
Sales in OtherCountries and Regions

2.68

billion yen

ASEAN 55.0%© Milbon Co., Ltd. All right reserved.

53

(Appendix) Outline Of Milbon: Our Global R&D and Production
We aim to minimize geopolitical risks and to align ourselves with thediverse values of beauty unique to each locality, by establishing R&D
and production systems in each region.
R&D－
Collaboration Among our Four Global R&D Bases

Production－
Collaboration Among our Three Global Factories
We respond flexibly to regulatory and trade risks andensure stable supply both domestically andinternationally through collaboration among factories
in each country.

Through collaboration with R&D bases in each country,
we aim to develop global products that captures
beauty needs shared worldwide, as well as localized
products tailored to each country and region's uniqueclimate, beauty customs, and laws and regulations.

Japan: Yumegaoka Factory
Products for Japan andoverseas

Japan
Central Research InstituteUS
R&D

Thailand
R&D

China
R&D

Since 2021

Since 2022

Since 2022

© Milbon Co., Ltd. All right reserved.

54

Thailand Factory
Products for overseas

China Factory
Products for Greater China

(Appendix) Outline Of Milbon: Shareholder Returns
We have set a dividend payout ratio target of 50% from FY2022, aiming
for steady and continuous shareholder returns.
(Yen)© Milbon Co., Ltd. All right reserved.

FY2024 Plan
88 yen55

(Appendix) Outline Of Milbon: Corporate Governance Structure

See our Integrated Report for more details ： https://www.milbon.com/en/ir/library/report.html© Milbon Co., Ltd. All right reserved.

56

Appendix Outline of Milbon: Compensation for Board Members
Compensation for board directors (excluding external board directors) shall consist of cash andstock-based compensation as an incentive to continuously increase corporate value, in order toencourage each board director to perform their duties with an awareness of businessperformance and sustainable improvement of corporate value.
Cash-Based Compensation
70％

30％

Basic Compensation

Performance-Linked
Compensation

Method for calculating
performance-linked compensation
1.

2.

Stock-Based Compensation
As an incentive to continuously
enhance corporate value, an amountequivalent to 20% of cash-based
compensation is granted, with transfer
restrictions until retirement.

Calculating the percentage of achievements of targets
It is calculated by applying a weighted average to the percentage of full-year targets achieved for each performance metric, based on theirrespective weighting ratios.
Performance Metric

Consolidated Net Sales

Consolidated Operating Income

Weighting

40%

50%

Consolidated Profit Attributableto Owners of Parent

10%

Performance-linked coefficient × Standard amountThe performance-linked compensation amount is determined by multiplying the performance-linked coefficient, based on the achievement
percentage, by the standard amount corresponding to the director’s position.
Achievement ofTargets
Performancelinked coefficient

≧120％

200%

＜120％≧115％ ＜115％≧110％ ＜110％≧105％ ＜105％≧100％ ＜100％≧95％

175%

150%

125%

See our Integrated Report for more details ： https://www.milbon.com/en/ir/library/report.html© Milbon Co., Ltd. All right reserved.

57

100%

80%

＜95％≧90％

＜90％

50%

0%

(Appendix) Outline Of Milbon: ESG Investment Index and External Assessments
ESG investment index to be selected

THE INCLUSION OF Milbon Co., Ltd. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS,
TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP,
ENDORSEMENT OR PROMOTION OF Milbon Co., Ltd. BY MSCI OR ANY OF ITS AFFILIATES.
THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMESAND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

FTSE Blossom Japan Index Series: https://www.lseg.com/en/ftse-russell/indices/blossom-japan

External assessments

MILBON CO LTD (YUMEGAOKA SITE)© Milbon Co., Ltd. All right reserved.

58

Disclaimer
With respect to the business forecasts included in this document, any statementthat is not historical fact is a forward-looking statement based on information
available and certain premises that are judged to be rational at the time of theannouncement. Please be aware that actual results may differ from any forwardlooking statements due to risks, uncertainties, and a number of other factors.

© Milbon Co., Ltd. All right reserved.