Consolidated Financial Results for the Nine Months Ended September 20, 2013
[Japanese GAAP]
September 27, 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: October 25, 2013
Preparation of supplementary materials on the quarterly results: Yes
Holding of an explanatory meeting on the quarterly results: No

TEL: +81-6-6928-2331
Scheduled starting date of dividend payments: -(Amounts of less than one million yen have been omitted)

1.

Consolidated financial results for the nine months ended September 20, 2013 (December 21, 2012- September 20, 2013)(1) Consolidated operating results%%

Ordinary income
Million yen

17,508

8.8

3,322

6.5

3,131

7.4

1,938

11.3

16,099

8.0

3,119

13.5

2,915

13.8

1,741

18.5

Nine months ended
September 20, 2013
Nine months ended
September 20, 2012
(Note) Comprehensive income

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

Net sales
Million yen

Nine months ended September 20, 2013: 2,568 million yen [46.1%]

Nine months ended September 20, 2012: 1,757 million yen [21.2%]

Net income per share
Diluted net income per share
Yen
Yen
Nine months ended
September 20, 2013
Nine months ended
September 20, 2012

141.08-126.37-(2) Consolidated financial position
Total assets
Nine months ended
September 20, 2013
Year ended
December 20, 2012
(Reference)
EquityNet assets

Equity ratio

Million yen

Million yen%

25,221

21,551

85.4

23,662

20,36786.1

As of September 20, 2013: 21,551 million yen

As of December 20, 2012:

20,367 million yen

2. Payment of dividends
Annual dividend
End of 1st quarterEnd of 2nd quarterEnd of 3rd quarterEnd of fiscal year

Yen

Yen

Yen

Yen

Yen

34.00

66.00

33.00

66.00

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

-

32.00

-

-

33.00

-

Total

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)

Year ending December 20, 2013

Net sales
Million yen
23,100Operating income% Million yen
%
5.5
4,250
6.6

Note: Changes to latest performance forecasts: None

Ordinary income
Net income
Million yen% Million yen
3,960
6.0
2,440

%
14.6

Net income per share
Yen
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

Nine months ended
13,798,848 shares Year ended
13,798,848 shares
September 20, 2013
December 20, 2012
Nine months ended
149,442 shares Year ended
18,716 shares
September 20, 2013
December 20, 2012
3) Average number of shares during the period
Nine months ended
13,741,331 shares Nine months ended
13,780,648 shares(cumulative)
September 20, 2013
September 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 Nine Months Ended September 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(3) Notes regarding going concern assumption ........................................................................................................................ 9(4) Segment information .......................................................................................................................................................... 9(5) Notes in case of any significant changes in shareholders' equity ....................................................................................... 9-1-

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

1.

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

Qualitative information on consolidated operating results
During the nine month period ended September 20, 2013, promising signs of recovery became evident as the yen grew
weaker and 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, there
has been a growing awareness of beauty among women in their 30’s to 50’s who form the core of the customer base.
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 mature
women.”
Consolidated net sales during the nine month period ended September 20, 2013 increased to 17,508 million yen (up 8.8%
year-on-year). 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; and the strong sales of thepermanent hair coloring brand Ordeve, and Ordeve Beaute, the product line specialized for gray hair in the hair coloringproduct category. Strong sales were also recorded for the additional items in Plarmia and Aujua Aging Care series and the
additional colors in Ordeve and Ordeve Beaute, all of which were launched in September to meet the wide-ranging needs ofcustomers. Double-digit growth of sales in China and South Korea thanks to the proactive educational activities conducted in
the salons was another factor of the increase.
Operating income increased to 3,322 million yen (up 6.5% year-on-year); ordinary income increased to 3,131 million yen(up 7.4% year-on-year); and net income increased to 1,938 million yen (up 11.3% 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]Nine months ended
September 20, 2012
Product category
AmountRatio (%)

(Unit: Million yen)
Nine months ended
September 20, 2013
AmountRatio (%)

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

Hair care products

8,007

49.7

9,086

51.9

1,079

13.5

Hair coloring products

6,615

41.1

7,018

40.1

403

6.1

Permanent wave products

1,282

8.0

1,224

7.0

(58)

(4.6)

Others

193

1.2

179

1.0

(14)

(7.4)

Total

16,099100.0

17,508

100.0

1,409

8.8

[Breakdown of net sales into domestic and overseas sales]
Nine months ended
September 20, 2012
AmountRatio (%)

(Unit: Million yen)
Nine months ended
September 20, 2013
AmountRatio (%)

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

Domestic sales

15,071

93.6

16,192

92.5

1,121

7.4

Overseas sales

1,028

6.4

1,316

7.5

288

28.0

Total

16,099100.0

17,508

100.0

1,409

8.8

(2)

Qualitative information on consolidated financial conditions
Total assets at the end of the nine month period ended September 20, 2013 increased by 1,559 million yen compared tothe end of the previous consolidated fiscal year to 25,221 million yen.
Current assets increased by 385 million yen compared to the end of the previous consolidated fiscal year to 11,984
million yen. This was due mainly to the increases in merchandise and finished goods and in raw materials and supplies by
390 million yen and 107 million yen, respectively, as well as the decreases in cash and deposits and in notes and accounts
receivable-trade by 120 million yen and 180 million yen, respectively.

-2-

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

Noncurrent assets increased by 1,174 million yen compared to the end of the previous consolidated fiscal year to 13,237
million yen. This was due mainly to the increase in construction in progress by 837 million yen as a result of advancepayments on a portion of the extension work of the Central Research Institute and the construction costs of the plant inThailand, and the increase of 574 million yen in investment securities associated with the rise in the prices of listed stock.
Current liabilities increased by 372 million yen compared to the end of the previous consolidated fiscal year to 3,469
million yen. This was due mainly to the increases in accounts payable-trade and in provision for bonuses by 241 million
yen and 245 million yen, respectively, as well as the decrease of 272 million yen in accounts payable-other.
There were no material changes in noncurrent liabilities from the end of the previous consolidated fiscal year.
Net assets increased by 1,183 million yen compared to the end of the previous consolidated fiscal year to 21,551 million
yen. This was due mainly to the 1,017 million yen increase in retained earnings, the 370 million yen increase in valuationdifference on available-for-sale securities associated with the rise in the prices of listed stock and the 258 million yen
increase in foreign currency translation adjustment due to the weakening yen, as well as the 463 million yen decrease
resulting from the acquisition of treasury stock.
As a result, equity ratio changed from 86.1% at the end of the previous consolidated fiscal year to 85.4%. Net assets per
share based on total outstanding shares as of the end of the current period increased from 1,478.02 yen per share at theend of the previous consolidated fiscal year to 1,578.92 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 Nine Months Ended September 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 Nine Months Ended September 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 Third Quarter(As of September 20, 2013)

6,066,322
2,964,933
1,775,588
18,754522,000
292,910(40,939)
11,599,570

5,945,782
2,784,882
2,166,363
22,722
629,398492,209(56,467)
11,984,891

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

3,417,385
916,8144,869,544
922,991
174,730
10,301,466
493,827

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

1,711,250
792,712(62,241)
2,441,721
13,237,014
25,221,906

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

723,794
1,286,588
631,175
31,466316,662
480,257
3,469,944

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

52,613148,062
200,676
3,670,621

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

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

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

2,000,000
199,183
19,493,825(514,340)
21,178,668(129,363)(127,493)(256,856)
20,367,325
23,662,476

241,145
131,471372,616
21,551,285
25,221,906

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 Nine Months Ended September 20, 2013

(2)

Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Earnings
Quarterly Consolidated Nine Months Ended September 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 income
Gain on sales of noncurrent assets
Total extraordinary 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-

Nine Months Ended
September 20, 2012
(December 21, 2011 September 20, 2012)
16,099,562
5,088,816
11,010,745
7,890,985
3,119,760(Thousand yen)
Nine Months Ended
September 20, 2013
(December 21, 2012 September 20, 2013)
17,508,946
5,563,866
11,945,079
8,622,277
3,322,801

1,461
20,917
43,5789,358
75,316

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

278,143
1,862
280,005
2,915,071

302,039557
302,596
3,131,297

-

552
552

2,660
12,64715,3072,899,763
1,240,149(81,878)
1,158,270
1,741,492
1,741,492

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

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

Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Nine Months Ended September 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 theparentComprehensive income attributable to minority interests-8-

Nine Months Ended
September 20, 2012
(December 21, 2011 September 20, 2012)
1,741,492(Thousand yen)
Nine Months Ended
September 20, 2013
(December 21, 2012 September 20, 2013)
1,938,666

2,212
13,50815,7201,757,213

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

1,757,213

2,568,139--

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 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' equityNone-9-