Consolidated Financial Results for the Nine Months Ended September 30, 2023
[Japanese GAAP]
November 10, 2023
Name of registrant:
Milbon Co., Ltd.
Tokyo Stock Exchange, Prime Market
Code No.:4919
URL https://www.milbon.com/en/
Representative:
Ryuji Sato, President & CEO
Inquiries:
Masahiro Murai, Managing Executive Director
TEL: +81-3-6478-6301
Scheduled filing date for quarterly report: November 10, 2023
Scheduled starting date of dividend payments: Preparation of supplementary materials on the quarterly results: Yes
Holding of an explanatory meeting on the quarterly results: Yes (Online streaming for institutional investors and analysts)(Amounts of less than one million yen have been omitted.)

1. Consolidated financial results for the nine months ended September 30, 2023 (January 1, 2023 - September 30, 2023)(1) Consolidated operating results
Net sales

Operating income

Nine months ended September 30, 2023

Million yen
34,150%
5.4

Million yen
3,416%(39.7)

Nine months ended September 30, 2022

32,407

-

5,662

-

Note: Comprehensive income

Nine months ended September 30, 2023: 3,087 million yen [(43.1)%]

Nine months ended September 30, 2023

(Percentages show year-on-year changes.)
Profit attributable to ownersof parent%
Million yen%(42.0)
2,489(42.3)

Ordinary income
Million yen
3,502
6,042

15.6

4,310

15.7

Nine months ended September 30, 2022: 5,429 million yen [41.8%]

Basic earnings per share Diluted earnings per share
Yen
Yen
76.52
-

Nine months ended September 30, 2022

132.56-

Note: Since the beginning of the previous fiscal year, sales discounts, previously categorized as non-operating expenses, are deducted from net sales. As a result, the Company
has determined that year-on-year comparisons of net sales and operating income with the same period of the previous year may be misleading. Accordingly, the percentage ofyear-on-year changes in net sales and operating income from the same period of the two fiscal years are not indicated in the above table. (Ordinary income and profit attributableto owners of parent remain unchanged.) If the figures of FY2021 were calculated on the same basis as FY2022, net sales and operating income would increase by 11.0% and8.4%, respectively, in the third quarter of FY2022. For more details, please see the FY2022 Financial Results Presentation Materials.
(2) Consolidated financial position
Total assets
Million yen
51,010

As of September 30, 2023
As of December 31, 2022
(Reference)

EquityNet assets
Million yen
44,35352,760
As of September 30, 2023: 44,353 million yen

Equity ratio%
86.9

43,991

83.4

As of December 31, 2022: 43,991 million yen

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

Year ended December 31, 2022

-

Yen
40.00

Year ending December 31, 2023

-

40.00

Year ending December 31, 2023
(forecast)
Note: Changes to latest dividends forecast: None

End of 3rd quarterEnd of fiscal year
Yen

-

Total

Yen
46.00

Yen
86.00

48.00

88.00

3. Consolidated operating results forecasts for the fiscal year ending December 31, 2023 (January 1, 2023 - December 31, 2023)(Percentages show year-on-year changes.)
Net sales
Million yen
Year ending December 31, 2023
47,820Note: Changes to latest performance forecast: Yes

Profit attributable toOperating income
Ordinary income
Basic earnings per shareowners of parent% Million yen% Million yen% Million yen
%
Yen
5.7
6,000
(20.5)
6,160(21.3)
4,260(23.6)
130.94

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

As ofSeptember 30, 2023
As of
September 30, 2023
Nine months ended
September 30, 2023

33,117,234 shares
577,135 shares
32,534,663 shares

As ofDecember 31, 2022
As ofDecember 31, 2022
Nine months ended
September 30, 2022

33,117,234 shares
591,511 shares
32,520,144 shares*These financial statements are not subject to the review by a certified public accountant or an audit corporation.
*Explanation on the appropriate use of operating forecasts and other special instructions
Operating forecasts and other statements regarding the future presented in these materials are based on information currently available and certain
assumptions deemed to be reasonable, and actual performance may differ substantially due to various factors.

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

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

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

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

3

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

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

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

6

Quarterly Consolidated Statements of Earnings
Nine months ended September 30, 2022 and 2023..................................................................................................

6

Quarterly Consolidated Statements of Comprehensive Income
Nine months ended September 30, 2022 and 2023.................................................................................................. ..

7(3)Notes Regarding Quarterly Consolidated Financial Statements..........................................................................................

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

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

8(Segment Information, etc.).................................................................................................. .............................................

8(Significant subsequent events).............................................................................................. ...........................................

8

-3-

1.

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

In the third quarter of this fiscal year, the Japanese economy saw a moderate recovery, primarily in consumer spending anddemand from foreign visitors. This was spurred by the reclassification of COVID-19 as Class 5, which led to increased
economic activities. However, the outlook remains uncertain due to concerns about a global economic slowdown due tomonetary policy tightening around the world and decrease in domestic consumer confidence due to rising prices.
In light of this situation, our Group has been promoting the 2022-2026 Medium-Term Management Plan with the vision of“becoming the leading manufacturer in Asia and top 5 in the world by elevating the value of industry professionals in the eyes ofconsumers and society at large.” In FY 2023, which marks the second year of the plan, the Group will carry out key initiatives toachieve the Beauty Platform Plan, which introduces new form of salons. This includes developing Smart Salons and launching
the Beauty Health Care business.
Consolidated net sales for the cumulative third quarter was 34,150 million yen (a 5.4% increase year-on-year). One of themain contributing factors was that within the haircare products category, the new Inmmetry Line launched from the Premium
Brand, Aujua, continued to perform well, and that the touchpoints of Global Milbon were steadily expanding mainly in the U.S.,
which resulted in strong sales. In terms of profit, gross profit declined due to inventory write-downs on hairdryers introduced inJapan and the impact of high raw material prices. Regarding SG&A expenses, expenses increased mainly due to the resumptionof activities, including increased promotion expenses and market development expenses resulting from active holding of largescale events and seminars. Travel expenses also increased due to an increase in domestic and overseas business trips. As a result,operating income was 3,416 million yen (a 39.7% decrease year-on-year), ordinary income was 3,502 million yen (a 42.0%
decrease year-on-year), and the quarterly net income attributable to owners of parent was 2,489 million yen (a 42.3% decreaseyear-on-year).
Net sales by item and Net sales by domestic and foreign country are as follows.
[Breakdown of consolidated net sales by product category](Unit: Million yen)
Product category

Nine months ended September
30, 2022
AmountNine months ended September
30, 2023

Ratio (%)

AmountRatio (%)

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

Hair care products

18,41556.8

19,933

58.4

1,517

8.2

Hair coloring products

12,33338.1

12,431

36.4

97

0.8

Permanent wave products

1,096

3.4

1,083

3.2

(13)

(1.2)

Cosmetic products

391

1.2

421

1.2

30

7.7

Other

169

0.5

280

0.8

110

65.2

32,407100.0

34,150

100.0

1,742

5.4

Total

[Breakdown of net sales into domestic and overseas sales](Unit: Million yen)
Nine months ended September 30, Nine months ended September 30,
2022
2023
AmountRatio (%)

AmountRatio (%)

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

Domestic sales

25,062

77.3

25,829

75.6

767

3.1

Overseas sales

7,345

22.7

8,320

24.4

975

13.3

Total

32,407100.0

34,150

100.0

1,742

5.4

-4-

(2)

Explanation on Financial Position
Total assets at the end of the third quarter of the current fiscal year decreased by 1,749 million yen from the end of theprevious fiscal year to 51,010 million yen.
Current assets decreased by 2,724 million yen from the end of the previous fiscal year to 23,974 million yen. The main
factors for the change were decreases of 3,411 million yen in Cash and deposits and 1,264 million yen in Notes and accounts
receivable - trade, and increases of 1,706 million yen in Merchandise and finished goods and 315 million yen in Raw materials
and supplies.
Non-current assets increased by 974 million yen from the end of the previous fiscal year to 27,036 million yen.
Current liabilities decreased by 2,168 million yen from the end of the previous fiscal year to 5,827 million yen. The main
factors for the change were decreases of 1,733 million yen in Accounts payable - other and 1,112 million yen in Income taxes
payable.
Non-current liabilities increased by 57 million yen from the end of the previous fiscal year to 830 million yen.
Net assets increased by 361 million yen from the end of the previous fiscal year to 44,353 million yen. The main factors forthe change were an increase of 871 million yen in Foreign currency translation adjustment due to the depreciation of the yen
and a decrease of 317 million yen in Retained earnings.
As a result, the equity ratio changed from 83.4% at the end of the previous fiscal year to 86.9%. Net assets per share based on
the total number of shares issued and outstanding at the end of the fiscal year were 1,363.04 yen, compared with 1,352.52 yen at
the end of the previous fiscal year.

(3)

Explanation on forward-looking statements including consolidated operating forecasts
With regard to the full-year earnings forecast, the previous forecast (announced on August 10, 2023) has been revised, taking
into account the most recent earnings and other factors. For details, please refer to the "Notice Regarding Revisions toConsolidated Earnings Forecasts" announced on November 10, 2023.

-5-

2.

Quarterly Consolidated Financial Statements and Main Notes(1)

Quarterly Consolidated Balance Sheets(Thousand yen)Previous fiscal year
As of December 31, 2022

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
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
LandConstruction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Accounts payable - other
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Net defined benefit liability
Deferred tax liabilities
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities-6-

Current 3rd quarter
As of September 30, 2023

12,300,053
5,255,686
6,319,121
39,927
1,999,103
784,924(185)
26,698,631

8,888,866
3,991,377
8,025,579
69,4892,314,864
684,203
23,974,381

9,014,115
3,082,059
6,452,228
453,754
817,742
19,819,899
1,902,217

9,238,143
3,304,203
6,460,236
776,235
912,910
20,691,730
1,882,904

1,775,734
7,425
56,180826,583
1,719,802(46,087)
4,339,639
26,061,755
52,760,387

1,346,994
10,70452,725
1,241,982
1,855,604(46,087)
4,461,924
27,036,560
51,010,941

1,133,259
4,022,247
1,334,496
591,582
914,619
7,996,205

1,261,116
2,289,027
221,629
977,131
1,078,359
5,827,263

10,628610
643,317
117,875
772,4318,768,636

11,292
646
695,146
123,198
830,284
6,657,548

(Thousand yen)Previous fiscal year
As of December 31, 2022
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-7-

Current 3rd quarter
As of September 30, 2023

2,000,000
274,537
41,875,487(2,030,911)
42,119,113

2,000,000
306,922
41,558,050(1,982,231)
41,882,741

214,928
1,766,040(108,331)
1,872,637
43,991,750
52,760,387(82,616)
2,637,719(84,450)
2,470,651
44,353,393
51,010,941

(2) Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Earnings
Nine Months Ended September 30, 2022 and 2023

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Company house defrayment income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on sales of non-current assets
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent(Thousand yen)
Nine months ended September 30, Nine months ended September 30,
2022
2023
(January 1, 2022
(January 1, 2023
- September 30, 2022)- September 30, 2023)
32,407,657
34,150,359
11,050,529
13,126,445
21,357,128
21,023,914
15,694,981
17,607,443
5,662,147
3,416,470-8-

15,625
15,980258,178
2,707
80,774
91,787465,053

12,89917,24764,9062,438
15,15031,390144,033

82,96256,824

1,995
84,9586,042,241856
57,6803,502,823

938
448
1,386

-

604
604
6,043,023
2,011,458(279,417)
1,732,041
4,310,982
4,310,982

18
29,04529,064
3,473,759
1,286,296(301,934)
984,3622,489,397
2,489,397

Quarterly Consolidated Statements of Comprehensive Income
Nine Months Ended September 30, 2022 and 2023

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests(Thousand yen)
Nine months ended September 30, Nine months ended September 30,
2022
2023
(January 1, 2022
(January 1, 2023
- September 30, 2022)- September 30, 2023)
4,310,982
2,489,397-9-

153,032(68,821)
1,051,799(17,492)
1,118,518
5,429,500(297,545)
871,679
23,880598,0143,087,411

5,429,500

3,087,411--

(3) Notes regarding quarterly consolidated financial statements(Notes regarding going concern assumption)
None(Notes in case of any significant changes in shareholders' equity)
None(Segment information, etc.)
The Company omits segment information, as it operates just one business segment engaged in the manufacturing and sales ofhair cosmetics.
(Significant subsequent events)
None- 10 -