Consolidated Financial Results for the Three Months Ended March 31, 2021
[Japanese GAAP]May 11, 2021
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: +81-3-3517-3915
Scheduled filing date for quarterly report: May 14, 2021
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 (Telephone briefing for institutional investors and analysts)(Amounts of less than one million yen have been omitted.)

1. Consolidated financial results for the three months ended March 31, 2021 (January 1, 2021 - March 31, 2021)(1) Consolidated operating results
Net sales

Operating income

Three months ended March 31, 2021

Million yen
8,989

%
14.9

Million yen
1,633%
58.4

Million yen
1,502

Three months ended March 31, 2020

7,825

(0.8)

1,031

(18.5)

835(Note) Comprehensive income

Three months ended March 31, 2021: 1,370 million yen [-%]

Three months ended March 31, 2021

Basic earnings per share
Yen
33.57

Three months ended March 31, 2020

18.45

(Percentages show year-on-year changes.)
Profit attributable to ownersof parent%
Million yen%
79.8
1,091
81.4

Ordinary income(28.1)

601(28.6)

Three months ended March 31, 2020: (357) million yen [-%]

Diluted earnings per share
Yen-(2) Consolidated financial position
Total assets
Million yen
42,321

As of March 31, 2021
As of December 31, 2020
(Reference)

EquityNet assets
Million yen
36,73543,075
As of March 31, 2021: 36,735 million yen

Equity ratio%
86.8

36,30884.3

As of December 31, 2020: 36,308 million yen

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

Year ended December 31, 2020-

Year ended December 31, 2021-

Year ended December 31, 2021
(forecast)(Note) Changes to latest dividends forecast: None

End of 3rd quarter

Yen
27.00

28.00

End of fiscal year
Yen

Total-Yen
29.00

Yen
56.00

-28.0056.00

3. Consolidated operating forecasts for the fiscal year ending December 31, 2021 (January 1, 2021 - December 31, 2021)(Percentages show year-on-year changes.)
Net salesYear ending December 31, 2021

Million yen
38,200(Note) Changes to latest performance forecast: None

Operating income% Million yen
6.9
6,420

Profit attributable to
Basic earnings per shareowners of parent% Million yen%Yen
(1.4)
4,050
(3.7)
124.50Ordinary income% Million yen
0.4
5,710

*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 companies (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: None
3) 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 ofMarch 31, 2021
As ofMarch 31, 2021
Three months ended
March 31, 2021

33,117,234 shares
614,981 shares
32,502,307 shares

As ofDecember 31, 2020
As ofDecember 31, 2020Three months ended
March 31, 2020

33,117,234 shares
614,837 shares
32,612,847 shares*These financial statements are not subject to the review of the quarterly financial statements 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.

Contents of supplementary materials
1. Qualitative Information on Consolidated Results for the Current Period .............................................................................

2(1)

Explanation on operating results .................................................................................................................................

2(2)Explanation on financial position ...............................................................................................................................

3(3)Explanation on 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 Consolidated Statements of Comprehensive Income ................

6

Quarterly Consolidated Statements of Earnings
Three Months Ended March 31, 2020 and 2021 ...................................................................................................

6

Quarterly Consolidated Statements of Comprehensive Income(3)

Three Months Ended March 31, 2020 and 2021 ...................................................................................................

7Notes regarding quarterly consolidated financial statements ......................................................................................

8Notes regarding going concern assumption .................................................................................................................

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

8

Segment information, etc. ............................................................................................................................................

8Significant subsequent events ......................................................................................................................................

8-1-

1.Qualitative Information on Consolidated Results for the Current Period(1)Explanation on operating results
In the first quarter of the fiscal year under review, the Japanese economy continued to face severe conditions as socioeconomicactivities were severely restricted due to the launch of the second emergency declaration following the re-expansion of COVID19. Looking ahead, although economic recovery is expected due to the popularization of vaccines, the situation remains uncertain,including the impact of the launch of the third emergency declaration.
In the beauty salon industry as well, customers have begun to return to salons, but many customers, such as salons in urban areas,
still have not returned enough, and the situation continues to be unpredictable.
Under these circumstances, in Fiscal Year 2021, we are working on "Change the Stage 18 Month Missions!" in order to lead us
to a new stage of growth from Fiscal Year 2022.
In the first quarter of the fiscal year under review, in the domestic market, annual policy penetration that was held online due tothe impact of COVID-19 was highly evaluated. In the hair care products category, sales of “Aujua”, a premium brand, werestrong, partly due to the launch of a new line. In the hair coloring products categorysegment, sales of the fashion color “OrdeveAddicthy” continued to be steady. In overseas markets, sales increased significantly in China and South Korea, where sales
declined last year due to the impact of COVID-19.
As a result, for the first quarter of the current fiscal year, consolidated net sales were 8,989 million yen (up 14.9% year-onyear), operating income was 1,633 million yen (up 58.4% year-on-year), ordinary income was 1,502 million yen (up 79.8%year-on-year), and profit attributable to owners of parent was 1,091 million yen (up 81.4% 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](Unit: Million yen)
Product category

Three months ended March 31, Three months ended March 31,2020
2021
AmountRatio (%)

AmountRatio (%)

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

Hair care products

4,424

56.6

4,975

55.4

551

12.5

Hair coloring products

2,995

38.3

3,495

38.9499

16.7

Permanent wave products

291

3.7

318

3.5

26

9.1

Cosmetic products

71

0.9

147

1.6

76

107.4

Other42

0.5

52

0.6

10

23.8

7,825

100.0

8,989

100.0

1,163

14.9

Total

[Breakdown of net sales into domestic and overseas sales](Unit: Million yen)Three months ended March 31,
2020
AmountRatio (%)

Three months ended March 31,2021
AmountRatio (%)

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

Domestic sales

6,590

84.2

7,182

79.9

592

9.0

Overseas sales

1,235

15.8

1,807

20.1

571

46.2Total

7,825

100.0

8,989

100.0

1,163

14.9

-2-

(2)Explanation on financial position
Total assets at the end of the first quarter under review decreased 753 million yen from the end of the previous fiscal year to42,321 million yen.
Current assets decreased 1,280 million yen from the end of the previous fiscal year to 20,841 million yen. The main factors forthe change were decreases of 1,604 million yen in cash and deposits and 172 million yen in notes and accounts receivable-trade,and increases of 367 million yen in merchandise and finished goods and 132 million yen in raw materials and supplies.
Non-current assets increased by 526 million yen from the end of the previous fiscal year to 21,480 million yen. Major contributing
factors included an increase of 468 million yen in construction in progress, including partial advance payment for the constructionof a new factory in China and the expansion of a factory in Milbon Thailand, and a decrease of 145 million yen in investment
securities due to a decrease in unrealized gains on the market value of listed shares.
Current liabilities decreased by 1,181 million yen from the end of the previous fiscal year to 4,919 million yen. The main factors
for the change were decreases of 936 million yen in accounts payable-other and 657 million yen in income taxes payable, andan increase of 338 million yen in accounts payable-trade.
Net assets increased by 427 million yen from the end of the previous fiscal year to 36,735 million yen. The main factors for thechange were increases of 148 million yen in retained earnings and 301 million yen in foreign currency translation adjustment
due to the depreciation of the yen, and a decrease of 100 million yen in valuation difference on available-for-sale securities due
to a decrease in unrealized gains on market value of listed stocks.
As a result, the equity ratio changed from 84.3% at the end of the previous fiscal year to 86.8%. Net assets per share based on
the total number of shares issued at the end of the fiscal year were 1,130.25 yen, compared to 1,117.10 yen at the end of theprevious fiscal year.

(3)Explanation on forward-looking statements including consolidated operating forecasts
In terms of the full-year forecast there are no changes to the previous consolidated operating forecasts, which were announced
on February 12, 2021.
Due to the high degree of uncertainty regarding the impact of COVID-19, the Company will promptly announce revisions to its
consolidated earnings forecasts in the event that future changes, such as delays in the timing of convergence, require revisions
to its consolidated earnings forecasts.

-3-2.Quarterly Consolidated Financial Statements and Main Notes(1)Quarterly Consolidated Balance Sheets(Thousand yen)Previous fiscal year
(As of December 31, 2020)
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, netLand
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Net defined benefit assetDeferred 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-4-Current 1st Quarter(As of March 31, 2021)

12,345,024
4,199,283
3,991,946
46,317
1,177,090366,288(3,648)22,122,303

10,740,755
4,026,388
4,359,029
63,666
1,309,666
345,762(3,647)
20,841,621

6,792,285
1,943,540
4,995,014
543,159
591,796
14,865,795
1,318,478

6,718,622
1,835,028
4,997,684
1,011,770
636,879
15,199,985
1,491,724

2,935,650
28,906
207,475
395,087
1,260,203(58,381)4,768,942
20,953,217
43,075,520

2,790,215
108,640
201,124
372,948
1,373,863(58,381)4,788,411
21,480,121
42,321,742

788,9112,730,817
1,104,850
436,811
1,038,850
6,100,241

1,127,367
1,793,851
446,946
411,414
1,139,456
4,919,036

5,216
2,329
546,954
112,427
666,928
6,767,170

5,337
713
548,289
112,736
667,077
5,586,113

(Thousand yen)Previous fiscal year
(As of December 31, 2020)
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
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-5-Current 1st Quarter(As of March 31, 2021)

2,000,000
222,490
35,643,295(2,108,947)
35,756,838

2,000,000
222,490
35,791,954(2,109,866)
35,904,578

405,396(1,206)
147,775(454)
551,51136,308,349
43,075,520

304,464
73,826449,1223,636
831,050
36,735,629
42,321,742

(2)Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Earnings
Three Months Ended March 31, 2020 and 2021

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
Refund of custom duty
Subsidy income
Other
Total non-operating income
Non-operating expenses
Sales discounts
Share of loss of entities accounted for using equity
methodForeign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary losses
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

Three months ended
March 31, 2020
(January 1, 2020 March 31, 2020)
7,825,824
2,592,507
5,233,317
4,202,128
1,031,188(Thousand yen)Three months ended
March 31, 2021
(January 1, 2021 March 31, 2021)
8,989,268
3,039,184
5,950,084
4,316,199
1,633,884

2,543
236
507
20,001
18,376
41,6653,811
220
46,338328
31,505
11,66893,872

150,596

157,513

36,107

66,66749,289989
236,982835,871

1,025
225,205
1,502,551

14,352
14,352
821,518
210,802
9,167
219,969
601,549
601,549

117
117
1,502,434
379,691
31,513
411,204
1,091,229
1,091,229-6-Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended March 31, 2020 and 2021

601,549(Thousand yen)Three months ended
March 31, 2021
(January 1, 2021 March 31, 2021)
1,091,229(561,444)(65,114)(338,946)
6,754(958,750)(357,200)(100,931)
75,033
301,346
4,090
279,538
1,370,768(357,200)

1,370,768--Three months ended
March 31, 2020
(January 1, 2020 March 31, 2020)
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-7-

(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 of haircosmetics.
(Significant subsequent events)
None-8-