Consolidated Financial Results for the Six Months Ended June 20, 2013
[Japanese GAAP]
June 26, 2013
Name of registrant:
Milbon Co., Ltd.
Tokyo Stock Exchange, First Section
Code No.:4919
URL http://www.milbon.co.jp
Representative:
Ryuji Sato, President and CEO
Inquiries:
Masahiro Murai, Managing Director
TEL: +81-6-6928-2331
Scheduled filing date for quarterly report: July 26, 2013
Scheduled starting date of dividend payments: August 9, 2013
Preparation of supplementary materials on the quarterly results: Yes
Holding of an explanatory meeting on the quarterly results: Yes (For institutional investors and analysts)(Amounts of less than one million yen have been omitted)

1.

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

Ordinary income
Million yen

11,433

8.4

2,195

11.7

2,063

13.3

1,271

18.9

10,548

7.8

1,965

12.4

1,820

12.2

1,069

18.6

Six months ended
June 20, 2013
Six months ended
June 20, 2012
(Note) Comprehensive income

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

Net sales
Million yen

Six months ended June 20, 2013:

1,784 million yen [62.3%]

Six months ended June 20, 2012:

1,099 million yen [23.9%]

Net income per share
Diluted net income per share
Yen
Yen
Six months ended
June 20, 2013
Six months ended
June 20, 2012

92.27

-

77.59

-

(2) Consolidated financial position
Total assets
Six months ended
June 20, 2013
Year ended
December 20, 2012
(Reference)
EquityNet assets

Equity ratio

Million yen

Million yen%

25,624

21,683

84.6

23,662

20,36786.1

As of June 20, 2013:

21,683 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

Six months ended
13,798,848 shares Year ended
13,798,848 shares
June 20, 2013
December 20, 2012
Six months ended
19,250 shares Year ended
18,716 shares
June 20, 2013
December 20, 2012
3) Average number of shares during the period
Six months ended
13,779,882 shares Six months ended
13,780,783 shares(cumulative)
June 20, 2013
June 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 Six Months Ended June 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) Quarterly Consolidated Statements of Cash Flows ............................................................................................................ 9(4) Notes regarding going concern assumption ...................................................................................................................... 10(5) Segment information ........................................................................................................................................................ 10(6) Notes in case of any significant changes in shareholders' equity ..................................................................................... 10-1-

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

1.

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

Qualitative information on consolidated operating results
During the six month period ended June 20, 2013, promising signs of recovery became evident as the yen grew weaker andstock prices rose in anticipation of the effects of the economic measures and fiscal policies taken by the new administration.
However, the nation’s economy remained in a state of uncertainty over its future due to the European debt crisis and thedecelerating economies of the emerging nations. In the beauty industry, amid the harsh business climate, there has been agrowing awareness of beauty among women in their 30’s to 50’s, and there has been a marked increase in yearly usage
amounts per customers in their 30’s and 40’s who use our partner salons.
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 six month period ended June 20, 2013 increased to 11,433 million yen (up 8.4%
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. 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 2,195 million yen (up 11.7% year-on-year); ordinary income increased to 2,063 million yen(up 13.3% year-on-year); and net income increased to 1,271 million yen (up 18.9% year-on-year), 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
Second Quarter
Product Category
AmountRatio (%)

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

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

Hair care products

5,300

50.3

5,906

51.6

606

11.4

Hair coloring products

4,266

40.4

4,593

40.2

326

7.7

Permanent wave products

860

8.2

822

7.2

(38)

(4.5)

Others

120

1.1

111

1.0

(9)

(7.8)

Total

10,548100.0

11,433

100.0

885

8.4

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

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

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

Domestic sales

9,873

93.6

10,632

93.0

759

7.7

Overseas sales

675

6.4

800

7.0

125

18.6

10,548100.0

11,433

100.0

885

8.4

Total

(2)

Qualitative information on consolidated financial conditions
1) Assets, liabilities and net assets
Total assets at the end of the six month period ended June 20, 2013 increased by 1,961 million yen compared to the endof the previous consolidated fiscal year to 25,624 million yen.
Current assets increased by 1,199 million yen compared to the end of the previous consolidated fiscal year to12,798
million yen. This was due mainly to the increases in cash and deposits, notes and accounts receivable-trade, andmerchandise and finished goods by 629 million yen, 160 million yen and 277 million yen, respectively.

-2-

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

Noncurrent assets increased by 762 million yen compared to the end of the previous consolidated fiscal year to 12,825
million yen. This was due mainly to the increase in construction in progress by 577 million yen as a result of advancepayments on a portion of the extension work of the Central Research Institute and the increase of 387 million yen in
investment securities associated with the rise in the prices of listed stock.
Current liabilities increased by 642 million yen compared to the end of the previous consolidated fiscal year to 3,740
million year. This was due mainly to the increases in accounts payable-trade, accounts payable-other, and income taxes
payable by 104 million yen, 215 million yen and 220 million yen, respectively.
There were no material changes in noncurrent liabilities from the end of the previous consolidated fiscal year.
Net assets increased by 1,316 million yen compared to the end of the previous consolidated fiscal year to 21,683 million
yen. This was due mainly to 805 million yen increase in retained earnings, as well as the 249 million yen increase invaluation difference on available-for-sale securities associated with the rise in the prices of listed stock and the 263
million yen increase in foreign currency translation adjustment due to the weakening yen.
As a result, equity ratio changed from 86.1% at the end of the previous consolidated fiscal year to 84.6%. 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 1,573.62 yen per share.
2) Cash flows
Cash and cash equivalents (hereinafter “net cash”) at the end of the current six month period ended June 20, 2013
increased by 733 million yen compared to the end of the previous consolidated fiscal year to 6,366 million yen, as a resultof using the net cash provided by operating activities for the payment of income taxes and the payment of dividends.
(Cash flows from operating activities)
Net cash provided by operating activities amounted to 1,798 million yen. This was mainly the result of posting 2,062
million yen in income before income taxes and minority interests, 425 million yen in depreciation and amortization and
627 million yen in income taxes paid.
(Cash flows from investing activities)
Net cash used in investing activities amounted to 680 million yen. This was mainly the result of the purchase of property,
plant and equipment of 787 million yen and purchase of intangible assets of 82 million yen, as well as proceeds fromwithdrawal of time deposits of 197 million.
(Cash flows from financing activities)
Net cash used in financing activities amounted to 469 million yen. This was mainly the result of cash dividends paid toshareholders of 467 million yen.
(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 Six Months Ended June 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 Six Months Ended June 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 Second Quarter(As of June 20, 2013)

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

6,696,017
3,125,308
2,052,957
16,710531,905
429,081(53,115)
12,798,865

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

3,484,435
821,830
4,870,879
662,789
192,047
10,031,982
495,579

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

1,523,947
836,727(63,007)2,297,667
12,825,229
25,624,094

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

586,360
1,774,723
868,682
33,242
78,149399,386
3,740,546

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

50,406
149,271
199,678
3,940,224

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 Six Months Ended June 20, 2013

Previous Consolidated Fiscal Year(As of December 20, 2012)
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-(Thousand yen)
Current Consolidated Second Quarter(As of June 20, 2013)

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

2,000,000
199,167
19,281,380(52,918)
21,427,628(129,363)(127,493)(256,856)
20,367,325
23,662,476

120,335
135,905
256,241
21,683,869
25,624,094

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

(2)

Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Earnings
Quarterly Consolidated Six Month Periods Ended June 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-

Six Months Ended
June 20, 2012
(December 21, 2011 June 20, 2012)
10,548,825
3,336,514
7,212,311
5,247,155
1,965,155(Thousand yen)
Six Months Ended
June 20, 2013
(December 21, 2012 June 20, 2013)
11,433,847
3,617,568
7,816,279
5,620,491
2,195,787

627
5,044
28,797
3,662
38,131

5,811
5,480
16,067
26,884
6,604
60,846

180,585
2,204
182,790
1,820,496

193,078
56
193,134
2,063,499

1,705
12,647
14,352
1,806,143
745,853(8,970)736,883
1,069,260
1,069,260

1,247
1,247
2,062,252
847,165(56,406)
790,758
1,271,494
1,271,494

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

Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Six Month Periods Ended June 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-

Six Months Ended
June 20, 2012
(December 21, 2011 June 20, 2012)
1,069,260(Thousand yen)
Six Months Ended
June 20, 2013
(December 21, 2012 June 20, 2013)
1,271,494(13,155)
43,20230,087
1,099,348

249,698
263,399
513,097
1,784,592

1,099,348

1,784,592--

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Six Months Ended June 20, 2013(3)

Quarterly Consolidated Statements of Cash FlowsSix Months Ended
June 20, 2012
(December 21, 2011 June 20, 2012)

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for sales returns
Increase (decrease) in provision for loss on guarantees
Increase (decrease) in provision for retirement benefits
Interest and dividends income
Foreign exchange losses (gains)
Loss on retirement of noncurrent assets
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payments of loans receivableCollection of loans receivable
Payments into time deposits
Proceeds from withdrawal of time deposits
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Purchase of insurance funds
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net decrease (increase) in treasury stock
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-9-(Thousand yen)
Six Months Ended
June 20, 2013
(December 21, 2012 June 20, 2013)

1,806,143
455,186
72,838(487)(32,586)(37,200)
19,179(5,671)(5,105)
1,705

2,062,252
425,4443,627
5,973
12,264
2,974(11,291)(5,347)
1,247

157,056(153,736)(72,435)
91,371
126,189
2,576,184
5,708(996,851)
1,585,041(232,144)
69,322
236,352
2,416,938
9,182(627,202)
1,798,918(420,773)(103,582)(1,690)7,160(615)(15,417)2,648(200,788)(2,290)(735,349)(787,731)
1,259(82,769)(2,240)10,064(3,587)
197,558(12,223)
3,334
(790)
(3,166)(680,290)(1,661)(467,748)(469,410)
22,253
402,535
5,076,356
5,478,891(1,836)(467,916)(469,752)
84,139733,015
5,633,298
6,366,313

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

(4)

Notes regarding going concern assumption
None

(5)

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.

(6)

Notes in case of any significant changes in shareholders' equity
None- 10 -