Consolidated Financial Results for the Three Months Ended March 20, 2013
[Japanese GAAP]
March 29, 2013
Tokyo Stock Exchange, First Section

Name of registrant:
Milbon Co., Ltd.
Code No.:4919
URL http://www.milbon.co.jp
Representative:
Ryuji Sato, President and CEO
Inquiries:
Masahiro Murai, Managing Director
Scheduled filing date for quarterly report: April 26, 2013
Scheduled starting date of dividend payments: Preparation of supplementary materials on the quarterly results: Yes
Holding of an explanatory meeting on the quarterly results: NoTEL: +81-6-6928-2331(Amounts of less than one million yen have been omitted)

1.

Consolidated financial results for the three months ended March 20, 2013 (December 21, 2012- March 20, 2013)(1) Consolidated operating results
Net sales
Million yen
5,291
4,860

Three months ended
March 20, 2013
Three months ended
March 20, 2012
(Note) Comprehensive income(Percentages show year on year changes)
Net income%Million yen%%

Operating income
Million yen%

Ordinary income
Million yen

8.9

902

9.3

844

10.9

512

18.5

4.9

825

6.0

761

7.1

432

21.2

Three months ended March 20, 2013: 882 million yen [75.9%]

Three months ended March 20, 2012: 501 million yen [53.9%]

Net income per share
Diluted net income per share
YenYenThree months ended
March 20, 2013
Three months ended
March 20, 2012

37.18

-31.37-(2) Consolidated financial position
Total assets
Three months ended
March 20, 2013
Year ended
December 20, 2012
(Reference)
EquityNet assets

Equity ratio

Million yen

Million yen%

23,94920,782

86.8

23,662

20,36786.1

As of March 20, 2013:

20,782 million yen

As of December 20, 2012:

20,367 million yen2. Payment of dividends
Annual dividend
End of 1st quarterEnd of 2nd quarterEnd of 3rd quarterEnd of fiscal year

YenYenYen

Yen

Yen

Year ended
December 20, 2012
Year ending
December 20, 2013
Year ending
December 20, 2013
(forecast)-Total

32.00

-

34.00

66.00

33.00

-

33.00

66.00

-

Note: Changes to latest dividends forecast: None
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

Operating income% Million Yen%
5.1
1,822(7.3)

Year ending December 20, 2013

5.5

23,100Note: Changes to latest performance forecasts: None

4,250

6.6

Ordinary income
Net incomeMillion Yen% Million Yen
1,671(8.2)
1,011
3,960

6.0

2,440%(5.4)

Net income per shareYen
73.36

14.6

177.06

*Notes(1) Significant changes in subsidiaries during the period(changes in specified subsidiaries accompanied by changes in the scope of consolidation) : None
New: 0 companies (Company name: )Exclude: 0 companies (Company name:)(2) Application of accounting methods specific to the preparation of quarterly consolidated financial statements: No(3) Changes in accounting policies, changes in accounting estimates and retrospective restatements
1) Changes in accounting policies due to amendment to theaccounting standards, etc.
: None2) Changes in accounting policies other than those in 1) above: None3) Changes in accounting estimates: None4) Retrospective restatements: None(4) Number of shares issued (common stock)1) Number of shares issued at the end of the period(including treasury stock)2) Number of treasury stock at the end of the period

Three months ended
13,798,848 shares Year ended
13,798,848 shares
March 20, 2013
December 20, 2012
Three months ended
18,924 shares Year ended
18,716 shares
March 20, 2013
December 20, 2012
3) Average number of shares during the period
Three months ended
13,780,065 shares Three months ended
13,781,010 shares(cumulative)
March 20, 2013
March 20, 2012
*Status of execution of quarterly review of financial statements
As these consolidated financial statements are not subject to the review of the quarterly financial statements pursuant to the Financial Instruments andExchange Act, procedures for said review were not completed at the time of disclosure of this report.
*Explanation on the appropriate use of operating forecasts and other special instructions
Operating forecasts and other statements regarding the future presented in these materials are based on information currently available and certain
assumptions deemed to be reasonable, and actual performance may differ substantially due to various factors.

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2013

Contents of supplementary materials
1. Qualitative information on consolidated results for the current period ...................................................................................... 2(1) Qualitative information on consolidated operating results ................................................................................................. 2(2) Qualitative information on consolidated financial conditions ............................................................................................ 2(3) Qualitative information on consolidated operating forecasts ............................................................................................. 3
2. Summary information (Notes) ................................................................................................................................................... 4(1) Significant changes in subsidiaries during the period ........................................................................................................ 4(2) Application of accounting methods specific to the preparation of quarterly consolidated financial statements ................. 4(3) Changes in the accounting policies, changes in accounting estimates and retrospective restatements ............................... 4
3. Quarterly Consolidated Financial Statements ............................................................................................................................ 5(1) Quarterly Consolidated Balance Sheets ............................................................................................................................. 5(2) Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income ....................... 7
Quarterly Consolidated Statements of Earnings ................................................................................................................. 7
Quarterly Consolidated Statements of Comprehensive Income ......................................................................................... 8(3) Notes regarding going concern assumption ........................................................................................................................ 9(4) Segment information .......................................................................................................................................................... 9(5) Notes in case of any significant changes in shareholders' equity ....................................................................................... 9-1-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2013

1.

Qualitative information on consolidated results for the current period(1)

Qualitative information on consolidated operating results
During the three month period ended March 20, 2013, promising signs of recovery became evident as the yen grew weakerand stock prices rose in anticipation of the effects of the economic measures and fiscal policies taken by the newadministration. However, the nation’s economy remained in a state of uncertainty over its future due to the European debt
crisis and the decelerating economies of the emerging nations. 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 such 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 maturewomen.”
Consolidated sales during the three months period ended March 20, 2013 increased by 8.9% compared to the same period of
the previous year to 5,291 million yen. This was primarily due to the strong initial sales of the aging care brand, “Plarmia,”
and the “Aujua Aging Care series Timesurge line,” which were launched in February, in the hair-care product category; andthe strong sales of “Ordeve Beaute,” the product line specialized for gray hair and the fashion hair coloring brand “Ordeve,”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.
Operating income increased by 9.3% compared to the same period of the previous year to 902 million yen; ordinary incomeincreased by 10.9% compared to the same period of the previous year to 844 million yen; and net income increased by 18.5%
compared to the same period of the previous year to 512 million yen, which was primarily due to the effects of increased
revenues.
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
First Quarter
Product CategoryAmountRatio (%)(Unit: Million yen)
Current Consolidated
First Quarter
AmountRatio (%)

Increase(Decrease)
AmountYear-on-year
Change (%)

Hair care products

2,421

49.8

2,671

50.5

250

10.4

Hair coloring products

2,024

41.6

2,230

42.1

206

10.2

Permanent wave products

365

7.5

343

6.5(22)(6.0)

Others

50

1.1

45

0.9(4)

(9.8)

Total

4,860

100.0

5,291

100.0

430

8.9

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

(Unit: Million yen)
Current Consolidated
First Quarter
AmountRatio (%)

Increase(Decrease)
AmountYear-on-year
Change (%)

Domestic sales

4,533

93.3

4,914

92.9

381

8.4

Overseas sales

327

6.7

376

7.1

49

15.0

4,860

100.0

5,291

100.0

430

8.9

Total(2)Qualitative information on consolidated financial conditions
Total assets at the end of the three month period ended March 20, 2013 increased by 286 million yen compared to the end of
the previous consolidated fiscal year to 23,949 million yen.
Current assets increased by 121 million yen compared to the end of the previous consolidated fiscal year to 11,721 million
yen. This was due mainly to the increases in cash and deposits and in merchandise and finished goods by 114 million yen
and 281 million yen, respectively; as well as the decrease in notes and accounts receivable-trade by 335 million yen.

-2-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2013

Noncurrent assets increased by 164 million yen compared to the end of the previous consolidated fiscal year to 12,227
million yen. This was due mainly to the increase of 369 million yen in investment securities associated with the rise in theprices of listed stock.
Current liabilities decreased by 130 million yen compared to the end of the previous consolidated fiscal year to 2,967 million
yen. This was due mainly to the decreases in accounts payable-other and in income taxes payable by 454 million yen and 238
million yen, respectively; in addition to the increases in accounts payable-trade and in provision for bonuses by 197 million
yen and 210 million yen, respectively.
There were no material changes in noncurrent liabilities from the end of the previous consolidated fiscal year.
Net assets increased by 415 million yen compared to the end of the previous consolidated fiscal year to 20,782 million yen.
This was due mainly to the 238 million yen increase in valuation difference on available-for-sale-securities associated withthe rise in the prices of listed stock and the 131 million yen increase in foreign currency translation adjustment due to theweakening yen.
As a result, equity ratio changed from 86.1% at the end of the previous consolidated fiscal year to 86.8%. Net assets per
share based on total outstanding shares as of the end of the current consolidated fiscal year increased from 1,478.02 yen per
share at the end of the previous consolidated fiscal year to 1,508.21 yen per share.
(3)

Qualitative information on consolidated operating forecasts
In terms of the full-year forecast there are no changes to the previous consolidated performance forecasts, which wereannounced on January 23, 2013.

-3-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2013

2.
(1)

Summary information (Notes)
Significant changes in subsidiaries during the period
None

(2)

Application of accounting methods specific to the preparation of quarterly consolidated financial statements
No(3)

Changes in the accounting policies, changes in accounting estimates and retrospective restatements
None-4-Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2013

3.
(1)

Quarterly Consolidated Financial Statements
Quarterly Consolidated Balance Sheets
Previous Consolidated Fiscal Year(As of December 20, 2012)(Thousand yen)
Current Consolidated First Quarter(As of March 20, 2013)

6,066,3222,964,933
1,775,588
18,754522,000
292,910(40,939)
11,599,570

6,181,225
2,629,596
2,057,209
25,232531,541
349,117(52,494)
11,721,428

3,612,333
887,448
4,763,766
85,294
180,5889,529,431
526,433

3,548,155
833,267
4,763,766
113,699
200,3829,459,271
498,523

1,136,817
939,464(69,240)
2,007,041
12,062,905
23,662,476

1,506,497
829,865(66,358)
2,270,004
12,227,799
23,949,228

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

679,603
1,104,806
408,924
29,848281,698
462,7092,967,591

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

48,080150,597
198,677
3,166,269

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assetsInvestment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Accounts payable-trade
Accounts payable-other
Income taxes payable
Provision for sales returns
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Provision for retirement benefits
Other
Total noncurrent liabilities
Total liabilities-5-Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2013

Previous Consolidated Fiscal Year(As of December 20, 2012)(Thousand yen)
Current Consolidated First Quarter(As of March 20, 2013)

2,000,000
199,120
18,476,098(51,035)
20,624,182

2,000,000
199,120
18,522,215(51,760)
20,669,574(129,363)(127,493)(256,856)
20,367,325
23,662,476

109,080
4,304
113,384
20,782,958
23,949,228

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-6-Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2013

(2)

Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Earnings
Quarterly Consolidated Three Month Periods Ended March 20, 2012 and 2013

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gains
Company house defrayment income
Other
Total non-operating income
Non-operating expenses
Sales discounts
Other
Total non-operating expenses
Ordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Provision of allowance for doubtful accounts
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Net income-7-

Three Months Ended
March 20, 2012
(December 21, 2011 March 20, 2012)
4,860,866
1,503,463
3,357,403
2,531,642
825,761(Thousand yen)Three Months Ended
March 20, 2013
(December 21, 2012 March 20, 2013)
5,291,221
1,680,408
3,610,813
2,707,982
902,830

330
192
7,336
14,123
1,799
23,781

3,394
192
15,64914,334
1,677
35,24887,6185
87,623761,918

93,115
11
93,126
844,951

1,245
11,00012,245
749,673
334,157(16,775)
317,381432,292
432,292

844,951
398,008(65,403)332,605
512,346
512,346

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2013

Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Three Month Periods Ended March 20, 2012 and 2013

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 theparent
Comprehensive income attributable to minority interests-8-

Three Months Ended
March 20, 2012
(December 21, 2011 March 20, 2012)
432,292(Thousand yen)Three Months Ended
March 20, 2013
(December 21, 2012 March 20, 2013)
512,346

57,221
12,296
69,518501,810

238,443
131,797
370,240
882,587

501,810882,587--Milbon Co., Ltd. (4919) Consolidated Financial Results for the Three Months Ended March 20, 2013(3)

Notes regarding going concern assumption
None

(4)

Segment information
The Company omits information on business segments, as it is engaged in the production and distribution of hair-care
products and related merchandise, all of which are deemed to belong to a single business segment.

(5)

Notes in case of any significant changes in shareholders' equity
None-9-