Milbon Co., Ltd.
FY2023 Financial Results
Presentation Materials

February 15, 2024
© 2024 Milbon Co., Ltd.

0

Table of Contents
P2

Words of Gratitude

P7

Consolidated Operating Results

P9

Factors in YoY Changes in Consolidated Operating Income

P10

Consolidated Sales by Product Category

P22

Consolidated Trends in Capital Expenditures and R&D Expenses

P23

Trends in Fieldpersons (FPs)

P24

Consolidated Net Sales in Japan and Overseas

P25

Consolidated Operating Income in Japan and Overseas

P26

Outlook of Overseas Subsidiaries

P29

Initiatives for FY2024 (65th Term )P50

Appendix

NOTES:

・Figures by the brand are based on shipment value.
・“Vs. plan ratio” in this document refers to the comparison between the actual
performance and the revised performance forecast announced on November 10th.

© 2024 Milbon Co., Ltd.

1

Milbon Group
Words of Gratitude

Ryuji Sato,
Chairperson© 2024 Milbon Co., Ltd.

2

Preface

Thank you for all yoursupport throughout my16 years of service as
President and CEO© MILBON Co.,Ltd.

© 2024 Milbon Co., Ltd.

3

2008-2023: 15 Years of Growth(millionyen)Consolidated net sales

2020
Launch of milbon:iD, ourofficial online stores

Overseas sales

2010
Launchof “Aujua”

2016
Launchof “milbon”

2022
Beauty Platform Plan:
Smart Salon Strategy
Lifetime Beauty Care Strategy

2019
Launchof “iMPREA”

Consolidated net sales grew by 30.0 billion yen
from 18.0 billion yen to 48.0 billion yen.
Overseas sales exceeded 10 billion yen.
© 2024 Milbon Co., Ltd.

4

2022
Global Strategy:
Seven RegionsSuccession Planning
Topics at the first course of each batch“Succession to happen in approximately 10
years, around 2023”“After stepping down from the role ofPresident, I will renounce the authority ofrepresentation. The Company only needs one
leader.”2014

Preparation for Milbon Corporate University(MCU) Leadership Development Project

2015

Succession plan initiated and implemented with notable2021

Appointed 2 Board Directors and 8 executive officers from among

A starting point and blueprint

achievements, producing 42 MCU graduates from the first
four batches

Conducted annual personnel meeting

MCU graduates to establish a full-fledged structure▶ Candidate for new President = Hidenori Sakashita

All Board Directors
agreed2023

Business Succession Structure2024

4 Board Directors and 7 executive officers ➝ Business Succession Structure*3 out of 4 Board Directors have overseas work experience© 2024 Milbon Co., Ltd.

Approval of the Nominating Committee▶ Approval of the Board of Directors

5

Message
Milbon's commitment to creating thefuture of the beauty market along withsalons and stylists remain unchanged.

We will steadily implement the initiativesof the Medium-Term Management Plan
2026.

Milbon will keep following
THE MILBON WAY to achievesustainable growth.

© 2024 Milbon Co., Ltd.

6

Milbon Group
Financial Results for
FY2023 (64 th Term)

Masahiro Murai,
Managing Executive Director© 2024 Milbon Co., Ltd.

7

Consolidated Operating Results
 Net sales reached a record high thanks to strong performance of haircare
products in Japan and overseas, but fell short of the target revenue due to a
slowdown in growth of hair coloring products.
 Profit fell short of projections due to deteriorating manufacturing costs fromproduction adjustments, soaring raw material prices, unfavorable product mix
as a result of lower-than-expected hair coloring products sales, and higherthan-anticipated SG&A expenses associated with increased sales activities.
(Unit:million yen)

FY2022%
total

FY2023%total

Net sales

45,238 100.0

47,762 100.0

Gross profit

29,50965.2

29,525

SG&A expenses

21,957

48.5

Operatingincome7,551

Ordinary income
Profit attributableto owners of parent© 2024 Milbon Co., Ltd.

Increase/
Increase/Vs. plan
Decrease
Decreaseratio (%)
ratio (%)

2,524

5.6

(0.1)

61.8

16

0.1

(1.3)

24,000

50.2

2,042

9.3

0.4

16.7

5,525

11.6 (2,026) (26.8)

(7.9)

7,829

17.3

5,586

11.7 (2,242) (28.6)

(9.3)

5,577

12.3

4,001

8.4 (1,575) (28.3)

(6.1)

8

Factors in YoY Changes in Consolidated Operating Income
•
•
•
•
•

The gross profit margin declined due to the persistent high cost of raw materials and the
product mix effect of lower sales of hair coloring products.
A write-down of 900 million yen was recorded due to the lowering of the sales forecast for
the hairdryer.
Marketing expenses increased as we hosted educational seminars and events in Japan andoverseas amid the COVID-19 recovery.
Personnel expenses increased due to an increase in personnel, annual salary increases, aswell as the base pay hike implemented in April.
Travel expenses increased due to higher airfares and other transportation costs, in addition
to more business travel.

△733+1,646
7,551（Unit: million yen）

△897
△835

Impact of raw
material costs：(385)
Product mix andother factors：(348)
Increase in
Decreasegross profit
in gross
FY2022 due to higher profit
sales
margin© 2024 Milbon Co., Ltd.

△366

Increase in
Disposal
Increase
marketingandexpenses suchinwriteas holding personnel
downs
eventsexpenses

9

△259

△256

△326

5,525

Increase in
Increase in
Increase intravel and
R&D
other
FY2023transportation
expenses
expenses
expenses

Consolidated Sales by Product Category [Hair Care Products (1)]Consolidated Net Sales
FY2022

26,312

FY2023(Unit: million yen)

Increase/
Decrease

28,355

2,042

Increase/
Decrease ratio(%)

Vs. plan ratio
(%)

7.8

0.9

•

Sales in Japan rose 4.9% YoY. Sales increased due to the launch of Aujua’s new productline, Inmmetry, driven by the overall growth of the domestic professional-use haircare
market.

•

The milbon:iD progressed as planned with 670,000 registered members, 5,930 registeredsalons, and 1,640 million yen in EC sales (1,160 million yen at the end FY2022).

•

Overseas, sales increased by 19.4% YoY. The growth of Global Milbon, especially in the
U.S., China, and South Korea, played a significant role in driving this sales boost. The
company’s successful efforts to promote the brand within salons through distributor sales
and educational events helped convert stylists into loyal fans.

•

Sales of Premium Brands rose 12.6% YoY, and sales of Professional Brands rose 0.5% YoY.

* The growth rate of sales mentioned in the text is based on the shipments value.

© 2024 Milbon Co., Ltd.

10

Consolidated Sales by Product Category [Hair Care Products (2)]New Products FY 2023
Aujua Hair Care Series Inmmetry LineA new line that corrects distortion*1 in the hair and frees fromthe habit of blow drying and ironing to condition hair,leading to lustrous and manageable hair with just a dry.
(Unit: million yen)

FY2023 target

1,100

FY2023

1,193

Progress rate (%)

108.5

Debut on February 11, 2023

Global Milbon Milbon& Aromatic Series
A haircare brand tailored to a variety of hair types, providing moisture,smoothness, and manageability while offering a selection of fragrances.
(Unit: million yen)

FY2023 target

250

FY2023129

Progress rate (%)

51.8*1 A condition in which curly or wavy hair suffers from damage, losing its shine and smoothness* Sales figures for each brand are based on shipment value.

© 2024 Milbon Co., Ltd.

11

Debut on April 11, 2023

Consolidated Sales by Product Category [Hair Care Products (3)]Miincurl Iron Keep Primer
A pre-ironing primer oil that protects hair from the heat of the iron andkeeps the ironed hair design soft and hydrated for a long time.
(Unit: million yen)

FY2023 target

150

FY2023172

Progress rate (%)

114.9

Debut on March 11, 2023

Elujuda Sun Protect
Elujuda’s new sun care products that shield hair from theharmful rays of the sun while maintaining its moisture throughout day.
Four items with different forms and usage timings to choose from.
(Unit: million yen)

FY2023 target

400

FY2023514

Progress rate (%)

128.5* Sales figures for each brand are based on shipment value.

© 2024 Milbon Co., Ltd.

12

Debut on March 11, 2023

Premium Brand: Aujua
New products “Inmmetry Line” led the growth. Sales are expected to further
increase with the launch of new scalp care products in February 2024.
Number of Salons*1
FY2022

6,022

FY2023

6,844(Unit: salons)
Increase/
Decrease

Increase/
Decrease ratio (%)

822

13.6

Consolidated Gross Sales
FY2022

FY2023

10,288

11,256(Unit: million yen)
Increase/
Decrease

Increase/
Decrease ratio (%)

967

9.4

Brand Concept

Product Range

A premium hair care brand born inconsideration of Japan’s social climate,culture, and characteristics of the hairof the Japanese people.

Aujua supports diverse perspectives on
beauty, now and into the future, byaddressing each individuals' hair and skinconcerns and offering the mostappropriate item for that time.

What is Aujua?
A wide range of product lineups offering
personalized treatment for eachindividual’s needs and hair type.

(Billion yen)(Thousand salons)

・5 series / 17 lines / 112 items
Eternal stage series
Aging care series
Hair care series
Scalp care series

Climatic care series＊ Figures in the graph are based on non-consolidated total sales
through 2018 and on consolidated total sales since 2019.

*1 Calculated based on the past year's shipment results for both Japan and overseas.
* Sales figures are based on shipment value.

© 2024 Milbon Co., Ltd.

13

Premium Brand: Global Milbon
Steady growth continues overseas, mainly in the U.S., and in Japan.
Further introduction to salons is expected onward.
Number of Salons*1
FY2022

FY2023

10,76913,381(Unit: salons)
Increase/
Decrease

2,612

Consolidated Gross Sales
FY20225,341

FY2023

6,388

Increase/
Decrease ratio (%)

24.3(Unit: million yen)

Increase/
Decrease

Increase/
Decrease ratio (%)

1,047

19.6

Brand Concept

What is “Global Milbon”?

A system hair care brand thatcultivates the “unique beauty” ofeach individual, achieving “360
Degree Beautiful Hair.”Based on the hair research technology wehave cultivated since our founding, weanalyzed diverse hair characteristics from
20 countries. Our analysis broke down thefactors for common hair damage
phenomena derived from our research,leading to the establishment of a new haircare system. This line contains ingredientsthat penetrates the shaft with its highaffinity to repair hair’s inner porosity andto improve hair’s overall integrity, from theinside out.

Countries and regionswith Salons

The brand is available in the following
countries and regions:Japan, USA, Hong Kong, China, Thailand,
Taiwan, Turkey, Malaysia, Vietnam,
Indonesia, the Philippines, Singapore,
Germany, Korea, Canada(Billion yen)(Thousand salons)＊ Figures in the graph are based on non-consolidated total sales
through 2018 and on consolidated total sales since 2019.

* Sales figures are based on shipment value.
*1 Calculated based on the past year's shipments for both Japan and overseas.
Data for the number of touchpoints in the U.S. for the period from October to December became inaccessible due to the changeover of distributors, therefore, the figures
displayed exclude the U.S.. The actual number of touchpoints at the end of FY2022, including U.S., was 18,400.

© 2024 Milbon Co., Ltd.

14

Consolidated Sales by Product Category [Hair Coloring Products]
Consolidated Net Sales

16,631•

Increase/
Decrease

FY2023

FY2022•(Unit: million yen)

16,953

Increase/
Decrease ratio (%)

322

1.9

Vs. plan ratio
(%)

(1.3)

Hair coloring products sales in Japan decreased by 0.8% YoY. Inventory adjustment by
distributors has settled down, but sales are still limited by the plateauing demand for haircoloring which had grown during the COVID-19 pandemic. The new product “Ordeve
Crystal High Bright” performed well, however, this was not enough to offset the decline insales of our mainstay Ordeve Addicthy and other products.
Overseas, sales rose 9.0% YoY. Gray color products in South Korea, where hair coloringproducts are the main source of sales, and SOPHISTONE in the U.S. drove the growth.

New Products FY 2023

Ordeve Crystal High Bright
A new line of Ordeve Crystal, a gray color brand launched in 2015.
It is a “fashion color for mature people” that brings brightness, vibrancy, andtransparency akin to fashion colors.
(Unit：million yen)

FY2023 target

150

FY2023249

Progress rate (%)

166.3* Sales growth by brand is based on consolidated gross sales.

© 2024 Milbon Co., Ltd.

15

Debut on June 8, 2023

Premium Organic Brand: Villa Lodola (1)In 2024, we expect to further expand sales by significantly strengthening thesales force of “Villa Lodola Color”
Number of Salons*1
FY2022

FY2023

12,45813,679(Unit: salons)
Increase/
Decrease

1,221

Consolidated Gross Sales
FY2022

1,328

FY2023

1,359

Increase/
Decrease ratio (%)

9.8(Unit: million yen)

Increase/
Decrease

Increase/
Decrease ratio (%)

31

2.4

(Million yen)(Thousand salons)

Brand Concept
Organic brand that proposes lifestyles that fulfill the beauty of people andthe environment

What is Villa Lodola?
Based on the philosophy of "Beauty, the Organic Way,“ the brand is fullycommitted to the natural environment not only in its products, but also in
its manufacturing process, packaging, and promotional tools.
All products are certified by ICEA, an Italian organic certification
organization. Organic hair care born in Italy, where nature's blessings bring
beauty to hair and skin.
＊ Figures in the graph are based on non-consolidated total sales
through 2018 and on consolidated total sales since 2019.

*1 Number of contracted salons* Sales figures are based on shipment value.

© 2024 Milbon Co., Ltd.

16

Premium Organic Brand: Villa Lodola (2)New Products FY 2023
Villa Lodola Renovo Tempus / Fulgens
A series that extends hair color longevity withthe reparative effects of nature's blessings,
promoting healthy beauty in both the scalp and hair.
Two types of shampoos and treatments to choose from,each tailored to different hair types.
(Unit：million yen)

FY2023 target

100

FY2023

Progress rate (%)

69

69.1

* Sales figures for each brand are based on shipment value.

© 2024 Milbon Co., Ltd.

17

Debut on April 11, 2023

Consolidated Sales by Product Category [Cosmetic Products (1)]Consolidated Net Sales
FY2022572

FY2023(Unit: million yen)

Increase/
Decrease571△0Increase/
Decrease ratio
(%)

△0.1

Vs. plan ratio
(%)

△10.0

• Sales of iMPREA, the brand shipped directly to salons*1, decreased due to a reactionary drop
resulting from a significant increase in the number of touchpoints in 4Q last year, following areview of starter kits. However, the new products, which coordinate well with hair color andare easy for stylists to recommend to their customers, performed well. In 2024, we willcontinue to introduce new products while strengthening repeat purchase measures to retain
existing customers.

• Sales of cosmetic products category remained almost flat compared to last year, thanks tothe strong sales of “Beauty Up Mist,” a product from the “Im” brand that is distributed by
distributors*2, launched in July. The company aims to expand sales by introducing new
products “Brow & Lash Color Mascara” and “Color Retouch CC Mousse Foundation” inFebruary 2024, which will complement hair color.

*1 Same as our Premium Brands of haircare products, the product inventory is shipped directly from Milbon to salons while distributors remain to be part ofour supply chain.
*2 Same as Professional Brands of haircare products, distributors stock products and sell them to salons.

© 2024 Milbon Co., Ltd.

18

Consolidated Sales by Product Category [Cosmetic Products (2)]New Products FY 2023
iMPREA Milky Soufflé UV
An airy, soufflé-textured sunscreen cream that blocks powerfulultraviolet rays and protects the skin from damage caused by dryness
and other factors to the stratum corneum.
(Unit: million yen)

FY2023 target

FY202332

Progress rate (%)

53

168.5

Debut on February 11, 2023

Im Beauty Up Mist
Make-up setting mist launched by a new cosmetics brand“Im," a distributor-distributed brand. Two types are available tochoose from based on your favorite makeup texture.
(Unit: million yen)

FY2023 target

20

FY2023

Progress rate (%)

40

204.7

* Sales figures for each brand are based on shipment value.

© 2024 Milbon Co., Ltd.

19

Debut on June 6, 2023

Premium Brand: iMPREA
New products are performing well, but due to the slower growth of existing products,
sales decreased compared to the previous year.
Number of Salons*1
FY2022

1,601(Unit: salons)

FY2023

Increase/
Decrease

1,970

369

Consolidated Gross Sales
FY2022572

FY2023

Increase/
Decrease ratio (%)

23.0(Unit: million yen)

Increase/
Decrease

558

Increase/
Decrease ratio (%)

(13)

(2.4)

Brand Concept

What is iMPREA?

The brand concept of iMPREA is “Revolutionize Your Aurawith your Professional Stylist”. We will provide new beauty
value by leveraging Professional Stylists’ ability to provide
solutions, by utilizing their strengths.

iMPREA is a salon exclusive brand created through joint research by KOSÉ,
which specializes in skin research, and Milbon, which specializes in hair research.
We will improve the complexion by establishing a good balance of moisture in
the “horny layer keratin" on the surface of the skin, which holds the key tocomplexion.

“Revolutionize Your Aura with your Professional Stylist”
This is a communication method that takes advantage of the unique strengths of hair salons, in which the hair stylist crafts your aura byapproaching a total impression of both the hair and face.
We deliver an aura change that is unique to you.
*1 Calculated based on the past year's shipment results.
* Sales figures are based on shipment value.

© 2024 Milbon Co., Ltd.

20

Consolidated Sales by Product Category [Other]
New Products FY 2023
Elmista（Results for dryer unit only）
A hair dryer, jointly developed with Panasonic, thatmicronizes and atomizes beauty serum.
Five types of serums are available to choose fromaccording to hair concerns and desired texture.
(Unit: million yen)

FY2023 target

120*1

FY2023

Progress rate (%)

119

99.9

Debut on April 11, 2023

• The sales target was largely achieved by intensifying our efforts toward theyear-end sales season and implementing rental initiatives for customers, etc.
The company aims to achieve the sales target of 120 million yen in 2024.

AlanousNearly 20 years of 5-ALA research led to the creation of a beauty supplement thatcomes in two types: “ALANOUS 5-ALA,” a functional food that helps maintainskin hydration, and “ALANOUS 5-ALA BEAUTY MULTI CARE,”a health food that supports overall wellness.
(Unit: million yen)

FY2023 target

70

FY2023

Progress rate (%)

48

69.2

Debut on September 7, 2023

＊ Sales figures for each brand are based on shipment value.
＊1 The sales target for ELMISTA was revised downward from 300 million yen in accordance with the revised earnings forecast announced on November 10,
2023.

© 2024 Milbon Co., Ltd.

21

Consolidated Trends in Capital Expenditures and R&D Expenses(Unit: million yen)

Category

FY2019FY2020

FY2021

FY2022

FY2023

Capitalexpenditures

1,605

1,917

4,644

4,097

3,151

Depreciation andamortization

1,453

1,562

1,777

2,026

2,213

Amount

1,534

1,581

1,741

2,074

2,334

% to sales

4.2

4.4

4.2

4.6

4.9

R&D exp.

FY2023 CAPEX Main Items
Sales Offices, Studios• Establishment andmaintenance of businesslocations(Relocation of Fukuoka
Sales Office, etc.)• HR Development Center

Digital•••milbon:iD
education:iD
Smart Salon (Digital marketing,etc.)

Production system•

Yumegaoka Factory(Machinery andequipment)
Thailand Factory(Machinery andequipment)

Others•Internal infrastructure,
production equipment, etc.

•

Innovation Center•© 2024 Milbon Co., Ltd.

22

Trends in Fieldpersons (FPs)
Fieldpersons Trends (by Country)
FY2021

FY2022(Average number of FPs during the period)
FY2023

328.2

335.4

350.2

102

105

104

USA
MILBON USA, INC.

13.2

13.0

13.2

68

102

123

China
Milbon Trading(Shanghai) Co., Ltd.
South Korea
Milbon Korea Co., Ltd.

29.8

31.6

34.3

72

66

65

26.0

32.8

33.4

130

126

141

36.0

36.2

38.2

41

63

70

Japan

Other *1

Upper column: Average number of FPs during
the period (persons)Lower column: Net sales per FP (million yen)
(As of December 31, 2023)-28 FPs joined in April 2023, and are
currently in OJT on site.
-9 FPs joined in October 2023, and are
currently in training.
(The above 37 FPs are not included in theleft chart.)*1 Thailand, Vietnam, Malaysia, Taiwan, Hong Kong, Turkey, Indonesia, the Philippines, Singapore, Germany and others© 2024 Milbon Co., Ltd.

23

Consolidated Net Sales in Japan and Overseas(Unit: million yen)

FY2022

FY2023

Increase/
Decrease

Increase/
Decrease
ratio

Changes in local
currency base*1

Vs. plan ratio

(%)

(%)

(%)

Net sales% to sales

Net sales% to sales

45,238100.0

47,762

100.0

2,524

5.6

4.5

(0.1)

35,33478.1

36,502

76.4

1,168

3.3

3.3

0.1

9,904

21.9

11,260

23.6

1,355

13.7

8.8

(0.8)

USA

1,328

2.9

1,624

3.4

296

22.3

13.9

6.8

China

2,114

4.7

2,241

4.7

127

6.0

3.8

(11.3)

South
Korea

4,159

9.2

4,715

9.9

555

13.4

7.4

2.0

Other*2

2,301

5.1

2,678

5.6

376

16.4

13.1

(0.0)

Consolidated net sales

Japan
Overseas[Reference] Exchange rate
FY2022

USA（USD）
China（RMB）
South Korea（KRW）(Unit: yen)

FY2023131.4919.49

141.2019.90

0.10190.1076*1 Figures are the rates of change in real terms on a local currency basis*2 Thailand, Vietnam, Malaysia, Taiwan, Hong Kong, Turkey, Indonesia, the Philippines, Singapore, Germany, and others© 2024 Milbon Co., Ltd.

24

Consolidated Operating Income in Japan and Overseas(Unit: million yen)

FY2022
OperatingincomeFY2023Operatingincomeratio(%)

OperatingincomeOperatingincomeratio(%)

Increase/
Decrease

Increase/Vs. plan ratio
Decrease ratio
(%)

(%)

Consolidated
operating income

7,551

16.7

5,525

11.6

(2,026)(26.6)

(7.9)

Japan

6,194

17.5

4,231

11.6

(1,962)(31.7)-

Overseas

1,357

13.7

1,294

11.5

(63)

(4.7)

-

(168)

(12.7)

(89)

(5.5)

79

-

-

China

(9)

(0.4)

68

3.1

77

-

-

South
Korea

1,351

32.5

1,284

27.3

(66)

(4.9)

-

Other*

184

8.0

30

1.1

(153)

(83.6)-

USA* Thailand, Vietnam, Malaysia, Taiwan, Hong Kong, Turkey, Indonesia, the Philippines, Singapore, Germany, and others© 2024 Milbon Co., Ltd.

25

Outlook of Overseas Subsidiaries (1)USA (Milbon USA)•

Sales declined in the 4Q of this year due to a backlash from the sales shift to the 4Q oflast year, which was caused by a shipment problem in the 3Q of last year, and atemporary halt of shipments as some contract distributors were acquired. However, fullyear sales achieved double-digit growth.

•

Sales of haircare products, which account for 80% of total sales, increased 15.7%. This
growth was led by Global Milbon. The number of new contacts expanded as distributors
and stylists became fans of the products through various educational events.

•

Sales of hair coloring products increased by 18.8%. Product loyalty for SOPHISTONE, ahair color brand tailored for the European and North American markets, improved througheducational events. In FY2024, we aim to accelerate growth by partnering with influencer
hair stylists for SOPHISTONE, as we have already done for Global Milbon.

•

The deficit was reduced due to increased revenue and lower logistics costs, which havebeen a challenge. The Company aims to achieve profitability in FY2025 by hiring more
staff to strengthen the sales system and investing in marketing to boost brand power,
while maintaining a balance of expenditures.

Figures in the text are based on local currency.

© 2024 Milbon Co., Ltd.

26

Outlook of Overseas Subsidiaries (2)China (Milbon China)•

The market environment is becoming increasingly challenging as salon customers areseeking more reasonable and high-quality services from salons, and the number of salon
visits is declining. However, the Company has managed to build strong relationships witheach salon, leading to higher revenues.

•

Sales of haircare products grew by 12% year-on-year. The Company helped salons adapt
to customer changes by providing service planning and technical training, which led to anincrease in the adoption of professional-use hair treatments by salons.

•

Sales of hair coloring products decreased by 5.1% YoY. Throughout the year, sales wereaffected by a decline in customer visits to salons. In FY2024, the Company will promote
the development of stylists into fans of Milbon’s hair coloring products by planning in-saloncolor services that increase the frequency of customer visits and by developing
educational measures for salons.

•

The full-year profit increased due to higher revenue, despite an increase in personnel
costs accompanying staff reinforcement and a rise in travel expenses accompanying pricehikes in hotels and airline tickets.

* Figures in the text are based on local currency.

© 2024 Milbon Co., Ltd.

27

Outlook of Overseas Subsidiaries (3)South Korea (Milbon Korea)•

Sales of hair coloring products, which make up more than 70% of total sales, rose by
4.3% YoY. Gray color products performed well due to the aging population in Korea,
despite the influence of changing color trends.

•

Sales of haircare products increased by 13.9% YoY. Global Milbon and other products
performed well, and sales increased by expanding touchpoints through cooperation withexcellent distributor sales staff. In FY2024, the Company will strengthen sales by further
securing distributor sales staff.

•

The decrease in profit was due to higher marketing expenses for educational events
targeting Millennial and Gen Z hairstylists, who have a high influence on the industry.

* Figures in the text are based on local currency.

© 2024 Milbon Co., Ltd.

28

Milbon Group
Initiatives for FY2024

Hidenori Sakashita,
President and CEO© 2024 Milbon Co., Ltd.

29

Domestic Beauty Market in 2023 and Current Status

2020

In the first year of the COVID-19 pandemic, the beauty experienced adownturn, but the negative impact was less compared to other markets

2021・2022

The beauty market grew steadily with rebound demand

2023
5/8

COVID-19 was reclassified to Class 5 from Class 2▶ Human mobility started to resume rapidly(Slower growth in 2023 compared to 2021 and 2022)

Changes in Consumer Behavior in 2023
“Outing oriented consumer
behavior”“Stay-at-home demand /Staycation”
Beauty was a high priority

High priority given to travel andeating out

Urgent need to create value to make beautya spending priority for 2024 and beyond© 2024 Milbon Co., Ltd.

30

Domestic Beauty Market in 2023 and Current Status
Hair color

Sales decreased by 0.8% YoY(calculated based on
shipment results)

Demand for hair color, which had grown during the COVID-19 pandemic,
peaked in 2023 and then sales dropped. We will focus on creating value
for in-salon hair color in FY2024.

 Inventory adjustment by distributors⇒Seems to have settled

 Initiatives for FY2024⇒Aim to reverse the downward trend by creating color services that can boost
the average spending per customer at salons

Haircare Sales increased by 4.9% YoY
Premium Brands, led by Aujua, drove the growth.

(calculated based on
shipment results)(billion Domestic sales of haircare products /Premium Brands
yen)Sales of Premium Brands in Japan
increased +8.4% YoY
・ Aujua
・ Global Milbon
・ Villa Lodola（Haircare）© 2024 Milbon Co., Ltd.

31

Domestic Market Strategy ①
Promoting Higher-Value Hair Color
new color proposal unique to salons,ⅰ Acombining
hair color and eyebrows

Hair

＆

Hair

Face

Promote a salon-exclusive total color service for hairand eyebrows, using Milbon’s hair color products© 2024 Milbon Co., Ltd.

32

Domestic Market Strategy ①
Promoting Higher-Value Hair Colorⅱ Enhanced hair color options tailored for mature individuals
featuring our organic brand, Villa Lodola

The world’s first ICEA-certified
hair color products
Naturally derived ingredientsthat are gentle on t hair and scalp

Used as a premium hair color option
by many salonsStrengthening our sales force by expanding from
8 specialized staff to approx. 350 field personnel nationwide
Number of touchpoints in Japan

Domestic sales

Results in FY2023：9,700

Results in FY2023：1,060 million yen

Target in FY2024：14,700

Target in FY2024：1,440 million yen© 2024 Milbon Co., Ltd.

33

Domestic Market Strategy ②
Increasing In-Salon Customer Purchases

ⅰ Smart Salon Strategy
Following the test marketing period, we will pursue our
proposals more aggressively from this fiscal year
Results in FY2023： 23 salons
Target in FY2024 ：100 salons

Overwhelmingly higher in-salon product sales

Tester station to raise productawareness and offer trial
opportunities

Styling station to provide
face-to-face consultation

Generating synergies through the integration of three sales areas

milbon:iD, our official online stores, toenhance convenience of product purchase© 2024 Milbon Co., Ltd.

34

Domestic Market Strategy ②
Increasing In-Salon Customer Purchasesⅱ milbon:iD
The number of members is growing steadily. We will add
new features to further enhance the appeal and value ofMilbon’s unique e-commerce platform.
Number of milbon:iD members（Persons）
1,200,000
1,000,000

1,000,000

870,000

800,000

670,000

600,000

・・・・

400,000

200,000
0
2020

2021

2022

2023

New function 1

Live Shopping

New function 2

The STYLE STOCK© 2024 Milbon Co., Ltd.

2024 Target

2026 Target

Unlocking the live shopping streaming function to develop salonoriented operation

Supporting customers’ seamless purchasing experience from productconsideration to purchase by displaying various information including
products used during salon visits on customers' milbon:iD My Page
35

Our Pricing Strategy
We have been mitigating the risk of raw material pricefluctuations by setting the prices of new products based on
customer value and accelerating the turnover of new products
Example of pricing：change in MSRP (excluding tax) for 250ml
Aujua shampoo
Inmmetry
Shipment value per
Diorum5,000
JPY
Immurise
SKU of all home-use
4,200 JPY
products grew +29%
3,500 JPY
2023
over 10 years
2019
2017
Initiatives to Reduce Manufacturing Cost of New Products /Turnover＜All products＞
Manufacturing cost ratio in FY2023：33.1%＜Products launched between 2017 and 2023＞
Manufacturing cost ratio in FY2023 ：30.5%
Ratio to non-consolidated Milbon sales in FY2023：
68.5%© 2024 Milbon Co., Ltd.

36

We have been reducing
the manufacturing costof new products byadjusting the raw
materials, etc.

Our Pricing Strategy
In order to cope with the higher-than-expected cost increases,
we plan to improve profitability by revising the prices ofexisting products whose cost ratio has been rising.

Price revisions for existing products overseas have alreadybeen implemented in line with market conditions.
Subject items
Part of haircare products (shampoos, treatments, and otherhome-use products)
Sales of target products account for about 15-20% of domestic
sales
Timing of implementation
Planned to start in FY2025
Impact of price revision
Assuming a +10% increase in MSRP, gross profit margin is expected
to increase by +0.5 to +1.0 percentage points.
© 2024 Milbon Co., Ltd.

37

Situation and Initiatives of Each Overseas Country(Growth Rate Target of Local Currency Basis)

China

South Korea

U.S.

Sales target in FY2024:
120M RMB (+9.2% YoY)

Sales target in FY2024:
47.8B KRW (+9.1%YoY)

Sales target in FY2024:
12.93M USD(+12.4%YoY)

・ Despite the deteriorating
market conditions in 2023, weachieved growth compared toprevious year
・ We expect further growth in
2024 despite the lingering
uncertainties in the market
environment

・ Sales of our mainstay haircoloring products remained
steady・ We aim to strengthen our haircare sales by working with our
excellent distributor sales force

・ We will boost sales of haircoloring products by leveraging
our base of 10,000 haircaresalons・ We aim to turn profitable by2025 by reducing logistics costs

Europe（Germany） ASEAN© 2024 Milbon Co., Ltd.

Sales target in FY2024:
1.5M EUR (+14.7% YoY)

Sales target in FY2024:
1.62B JPY (+10.0% YoY)

・ Sales above our plan wereachieved in 2023
・ To expand our sales channels
in the EU, we plan to assign two
more expatriates there

・ Partnership with distributors togrow our market share further
・ Business with leading
distributor in Vietnam has begun

38

Situation in China
Sales

Steady growth continues with sales up 3.8% (on a local currency
basis) year-on-year in FY 2023, amid economic downturn
The Company built strong relationships through tailored activities for individual
salons and helped create services that cater to the changing needs of customers⇒Haircare products drove the growth. Estimated market share in terms of value of
shipments to salons rose from 8th in 2019 to 4th in 2023.
Sales in local currency basis（2019-2024 Target）（Thousand RMB）
150,000
100,000
50,000
0
2019

2020

2021

2022

2023

2024 Target

Factory Increasing local production to reduce regulatory risk
The acquisition of sales approval for most of our locally manufactured
hair coloring products was completed in 2023
⇒Shifting to a full-scale production in 2024
© 2024 Milbon Co., Ltd.

39

Scenarios for Our MTMP (2022-2026)
Sales are progressing steadily, but there are delays in the
progress of profits
Sales
Consolidated net sales for 2023 are on track toward our 2026 goal of 58 billion yen, inline with our MTMP forecast

Operating income
Even leaving aside the fact that there is the inventory write-down of hair dryer for
2023, the rise in raw material prices and other expenses exceeds our expectations
Consolidated net sales

Consolidated operating
income（Million yen）

58,00040,8497,910

32,93845,238 47,762
9,904

17.3%

14,300（Million yen）

18.6%

16.7%

11,26011.6%
10,80035,33436,502

43,700

7,084

7,551
5,525

Amount© 2024 Milbon Co., Ltd.

40

Operating margin

Scenarios for Our MTMP (2022-2026)
We aim to improve the effectiveness of our measures toaddress cost issues and work to enhance our current
operating profit margin.
*The specific numbers of our MTMP will be reannounced after review.

Cost issues to address

Measures for 2024 and beyond

・ Spike and sustained high prices ofraw materials
・ Base increase and other initiatives
related to personnel cost・ Rising logistics cost (2024 problem)

・ Launching new high value-added
products and lowering the cost ratio
・ Implementing price revisions forexisting products
・ Reevaluating our CAPEX(million yen)

13.0%
11.6%

5,525

6,600

Amount© 2024 Milbon Co., Ltd.

Operating margin41

FY2024 Assumptions Underlying Earnings Forecasts
Assumptions
Sales Japan•

Despite the lack of strength in the market growth, we anticipate an increasein sales due to introducing new haircare products, boosting our efforts for haircoloring products, and selling cosmetics based on hair coloring products.

Overseas•South Korea: We expect moderate growth in hair coloring products, which
account for 70% of our sales, and an increase in sales by strengthening ourhaircare product, but the impact of foreign exchange rates will limit thegrowth rate on a yen basis to the low single digits.
China: Despite lingering uncertainties in the market environment, we expect
our sales to continue growing, thanks to our strong relationships with salonsand robust sales of our haircare products.
U.S.: We anticipate increased sales from the sustained strong performance of
our haircare products and the improvement of our hair color sales activity.
Others：We expect revenue to increase due to continued growth in ASEAN
and the EU.

•••

Profit••••© 2024 Milbon Co., Ltd.

Raw material prices remain high at current levels. We expect to have anegative impact compared to the previous year in the first half.
A rebound increase will occur from the hair dryer valuation decrease recorded
in 2023.
We expect an increase in marketing costs due to holding educational eventsand other activities in Japan and overseas.
We expect an increase in logistics costs in Japan due to the impact of the2024 problem.
42

Target for FY2024: Consolidated Statement of Earnings

FY2023(Unit: million yen)

FY2023

FY2024FY2024% totalsales

Target% totalsales

Increase /Decrease

Increase /Decreaseratio(%)

47,76236,502100.0
76.4

50,62038,620

100.0
76.3

2,857
2,117

6.0
5.8

Gross profit

11,26029,525

23.6
61.8

12,00032,400

23.7
64.0

739
2,874

6.6
9.7

SG&A expenses

24,00050.2

25,800

51.0

1,799

7.5

Operating income

5,525
5,586

11.6
11.7

6,600
6,560

13.0
13.0

1,074
973

19.5
17.4

4,001

8.4

4,650

9.2

648

16.2

Net sales
Japan
Overseas

Ordinary income
Profit attributableto owners ofparent© 2024 Milbon Co., Ltd.

43

Target for FY2024：Factors in YoY Changes inConsolidated Operating Income(Million yen)

+152
(833)

+956

(315)
(211)
+1,767

5,525

Increase ingross profit
FY2023 due to higher
sales© 2024 Milbon Co., Ltd.

・ Launch of new highvalue-added products
・ Efforts to reduce raw material
procurement costs
・ Manufacturing cost reduction
at China Factory

Disposalandwritedowns

Decreasein gross
profitmarginIncrease inpersonnel
expenses

Increase in
R&D
expenses

44

(208)

(233)

6,600

Increase in
Increase in marketing
Increase inlogistics expenses suchother FY2024
expenses as holding
expenses
eventsTarget for FY2024: Sales by Product Category•

Hair care products: Sales are expected to increase in Japan and overseas dueto the introduction of new products, centered on Aujua and Global Milbon, andthe rollout of educational initiatives.

•

Hair coloring products：In Japan, sales are expected to increase due tostrengthened activities of "Villa Lodola Color" and high-value-added color
proposals linked to cosmetics. Overseas, we expect stable growth in South
Korea and sales increase by strengthening activities in the U.S. and China.

•

Cosmetic products：A new cosmetic product linked to hair coloring will be
introduced from the “IM" brand to revitalize the cosmetics business.

•

Others：Sales of ELMISTA will continue. New products will be introduced in the
supplement.

(Unit: million yen)
Hair care products
Hair coloring products
Permanent wave products

Cosmetic Products
Others© 2024 Milbon Co., Ltd.

FY2024
TargetFY202328,355
16,953
1,463
571
418
45

30,20017,600
1,480
820
520

Increase /Increase /Decrease
Decreaseratio (%)

1,844
646
16
248
101

6.5
3.8
1.1
43.4
24.4

Target for FY2024: Consolidated Net Sales andOperating Income in Japan and Overseas
Domestic operating income is expected to increase. However, overseas
profit is expected to decrease due to increased sales activities of haircoloring products in the U.S. as well as expansions of office and workforce
in South Korea.
Sales(Unit:FY2023

million yen)Overseas

36,502
11,26038,62012,000

2,117
739

5.8
6.6

5.8
10.1

USA

1,624

1,811

186

11.5

12.4

China

2,241

2,460

218

9.8

4,715

4,784

68

1.5

2,678

2,945

266

9.9

Japan

South
Korea
Other

OperatingincomeFY2023(Unit:
million yen)

FY2024 Target

OperatingOperatingincome ratio
income(%)

Increase /OperatingOperatingincome ratio Decrease
income(%)

Increase /Decreaseratio (%)

Overseas

4,231
1,294

11.6
11.5

5,522
1,077

14.3
9.0

1,290
(216)

30.5
(16.7)

USA

△ 89

△ 5.5

△ 106

△ 5.9

(16)

ー

68

3.1

197

8.0

129

189.2

1,284

27.3

1,068

22.3

(216)

(16.8)

30

1.1

△ 81
46

△ 2.8

(112)

ー

Japan

China
South
Korea
Other
© 2024 Milbon Co., Ltd.

Exchange rate Exchange rate
Increase / Changes in
Increase /local
Decrease
FY2023
FY2024currency
Decreaseratio (%)
(Unit: yen)
(Unit: yen)base

FY2024
Target

-

-

-

-

USD
141.20
RMB
9.2
19.90
KRW
9.1 0.1076

11.0

-

140.0
20.0
0.1000-Target for FY2024: Capital Expenditures

Classification

FY2023

Capital expenditures
Depreciation and amortization
AmountR&D exp.
% to sales

FY2024
Target

3,151
2,213
2,334
4.9%

FY2024 CAPEX Main Items
Sales Offices,
Studios・Establishment and maintenance of business locations
・Human Resources Development Center

Production
system・Technical Center・Yumegaoka Factory (Machinery and equipment)
・Thailand Factory (Machinery and equipment)

Digital・milbon:iD・education:iD
・Smart Salon (Digital marketing, etc.)

Others・Internal infrastructure, production equipment© 2024 Milbon Co., Ltd.

47

4,258
2,404
2,649
5.2%

Return to Shareholders
The Year-end dividend for FY2023 is set at 48 yen, for a total
annual dividend of 88 yen＊.
Aiming for stable and continuous dividends while maintaining
a dividend payout ratio of 50%.
FY2021

FY2022

FY2023

FY2024
Forecast

End of 2Q

30

40

40

40

End of FY

38

46

48

48

Total

68

86

88

88

43.3%

50.2%

71.6％

61.6％

(Unit: yen)

Consolidated
dividend
payout ratio＊To be formally decided at the Annual General Meeting of Shareholders© 2024 Milbon Co., Ltd.

48

＜Appendix＞Progress in Sustainability Initiatives
We were selected as a constituent of the ESG Investment
Index, improving its reputation among external institutions.
ESG investment index to be selected in 2023

Ecovadis "Gold" rating obtained
Following the "Silver" rating in 2022, we earned a "Gold" rating in
2023, which is given to the top 5% of companies evaluated.

FTSE Blossom Japan Index Series ： https://www.lseg.com/en/ftse-russell/indices/blossom-japan
THE INCLUSION OF Milbon Co., Ltd. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP,
ENDORSEMENT OR PROMOTION OF Milbon Co., Ltd. BY MSCI OR ANY OF ITS AFFILIATES.
THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES.

© 2024 Milbon Co., Ltd.

49

＜Appendix＞Progress in Sustainability Initiatives
Progress on the Five Key Challenges is generally well underway
toward achieving the 2026 target.
Priority themes

KPI

KPI progress

2026 target

2030 target

・ 670,000
・ 23 salons in 19
cities・ 1 million
・ 500 salons in
100 cities in Japanー・ 271,000
・ 40,000

・ 335,000
・ 100,000ー(as of Dec. 31,2023)

1 Enrich the spirit through beauty
Establishment ofknowledge-based
product sales business
utilizing both thephysicaland digital realms

Fostering lifetime
beautypartners

・ Number of registeredmilbon:iD members
・ Number of cities inJapan where Milbon
deploys knowledgebased product sales
・ Total number ofannual users of ourstudios, events, andeducational videos
・ Number of registerededucation:iD members

2 Promote recycling in manufacturing and consumption activities
Establishment of acarbon-neutral
production
System・ Reduction rate of ・ 81% reduction
・ 75% reduction
CO2 emissions at(compared to 2019 (compared to
Yumegaoka Factory levels)
2019 levels)・ Achieve carbon
neutrality

Sustainablecontainer andpackaging design

・ Reduction rate ofpetroleum-derived virgin ・ 9.6％ reduction inplastic use (compared to use (compared to2020 levels, per unit
2020 levels)
sales)

・ 15% reductionin use (compared
to 2020 levels,
per unit sales)© 2024 Milbon Co., Ltd.

50

・ 15% reductionin use (compared
to 2020 levels,
per unit sales)

＜Appendix＞Progress in Sustainability Initiatives
Priority themes

KPI

KPI progress(as of Dec. 31,2023)

2026 target

2030 target

3 Practice people-friendly procurement
Sustainable
・ RSPO certified palm oil
・ 9.5%
procurement of palm adoption rate
(MB+B＆C)
oil(MB+B&C)

・ 50%(MB+B＆C)

・ 100%(MB+B＆C)

Respect for humanrights in
the supply chain

・ Keeping humanrights violations as
close to zero as
possible

・ Keeping humanrights violations as
close to zero as
possible・① Number of cases ofhuman rights violations ・ 0
identified

4 Construct a fair and flexible management structure
・ Continuously appoint

Promoting diversity
among
the Board of
Directors
Improving theeffectiveness of theBoard of Directors

・ Appointment of
・ 5 outside board
over 1/3 outside board
outside board directors directors (5 out of 11) directors
・ Active appointment of ・ 2 female board
・ Continuously appoint
female board members members (2 out of 14) female board members
・ Ensure diverse skills,
・ Securing diverse skills, ・ 0 foreign board
including internationality members (0 out of 14) includingーProgress in selecting andimproving key
challenges though thirdparty evaluations

ー・ Continuinginternationality
・ Continuous
improvement activities
for setting annual
challenges

5 Realize work environment with enhanced job satisfaction

・ Turnover rate of junior ・ 10.0％
employees (new・ 67.8％
Achieving systems
graduates to 3rd year) ・ Conduct surveys and ・ Turnover rate 9.0% ・ Turnover rate 6.0%
and framework that・ Paid leave utilization
set targets,
・ 70% paid leave
・ 80% paid leaveencourage employees
rate
etc.*.*Includes implementation utilization rateutilization rate
to continue Working
reportingtotheexecutive
team,・ Progress of
feedback to senior management, andengagement
surveydevelopment of51
action plans.
© 2024 Milbon Co., Ltd.

＜Appendix＞Progress in Medium-term Financial Strategy(2022-2026)
Cash flows
fromoperatingactivities
Use：
CapitalExpenditure

Return to
Shareholders

FY2022
5 billion yen

FY20234.77 billion yen

4.1 billion yen

3.15 billion yen

Sales offices, Studios
Sales offices, Studios 220 million yen
150 million yen (Relocation of Fukuoka Sales Office, expansion of
Nagoya Sales Office, etc.)
Production system
Production system 1,080 million yen
1,330 million yen(Machinery and equipment of Yumegaoka
Factory, China Factory, expansion of Thailand
Factory, etc.)
Training
Training 0 yen
1,440 million yen
DigitalDigital 540 million yen
80 million yen(milbon:iD, Software Development for Smart
Salon, education:iD, etc.)
Other
Other 990 million yen
730 million yen (Internal infrastructure, Interior of the Innovation
Center, etc.)
Suspense accountSuspense account 330 million yen
360 million yen (Construction in progress, software in progress)

2.8 billion yen
Dividend payout ratio

2.86 billion yen
Didivend payout ratio

71.6%

50.2%
Maintain
Financial Base

(1.9 billion yen)

(1.24 billion yen)

Cash Position

12.26 billion yen
13.2%
12.5%

11.29 billion yen
8.9%
8.6%

ROE
ROIC

© 2024 Milbon Co., Ltd.

52

＜Appendix＞4 Target Indicators for Overseas
Market*Reference figures complied from figures provided by
distributors in each country.
FY2021

FY2022

ResultResultFY2023
Increase /Decrease

ResultFY2026
Increase /Decreaseratio (%)

TargetProgressrate①Sell-out of distributors (million yen) ⇒ Sales of Milbon products from distributors to salons
USA*
China
Korea

1,120
3,048
4,267

1,868
2,881
5,038

1,765
3,137
5,879

ー

9,127
3,934
13,116

ー

256
841

ー
+8.9%
+16.7%

2,576
6,181
6,500

ー
2.8%
72.2%

433
1,993

ー
+12.4%+17.9%

12,0007,030
17,379

42.5%
21.3%
35.3%

②Number of salons that carry Milbon products
USA*
China
Korea

7,000
3,094
10,791

9,024
3,501
11,123③Number of sales personnel at distributors that carry Milbon products
USA*
China
Korea

160
100
290

201
98
290

180
112
254

ー

9
29
17

10
28
23

ー

14
(36)

ー
+14.3%(12.4%)

250
153
470

(1)
6

ー
(4.7%)+33.2%

10
40
14④Productivity (million yen) ⇒ ①÷③
USA*
China
Korea

7
30
15

22.2% *The number of
22.6% sales personnel(20.0%) at distributors
in USA was 231,
as of December
31, 2023.

*As for the U.S., due to the acquisition of some of the distributors by other distributors, results through September 30, 2023 are shown.

© 2024 Milbon Co., Ltd.

53

＜Appendix＞Overseas Market Percentage Change
in Sales in Local Currency
USA
Net sales
Hair care
Hair coloringPerm% to sales
Hair care
Hair coloring
Perm
Others

FY2022
FY2023
1Q
2Q
3Q
4Q
Total
1Q
2Q
3Q
4Q
Total
+38.7% +22.8% (15.3%) +51.5% +22.6%+13.5% +19.3% +56.0% (15.9%) +13.9%+33.1% +31.7% (16.6%) +51.5% +23.5%+15.5% +18.1% +64.9% (15.2%) +15.7%+135.2% (11.0%) (11.4%) +60.3% +25.1%+10.6% +27.0% +59.8%(4.5%) +18.8%+25.6% (19.1%) (52.4%) +14.9% (14.3%)(1.5%) +26.4% +25.7% (31.8%)
+1.0%
84.2%
9.4%
4.9%
1.5%

84.7%
9.1%
4.6%
1.7%

82.6%
7.6%
4.1%
5.7%

84.9%
8.5%
4.5%
2.2%

84.2%
8.6%
4.5%
2.6%

85.7%
9.1%
4.2%
1.0%

83.8%
9.7%
4.8%
1.7%

87.3%
7.8%
3.3%
1.6%

85.5%
9.6%
3.6%
1.2%

85.6%
9.0%
4.0%
1.4%

China
Net sales
Hair care
Hair coloringPerm% to sales
Hair care
Hair coloring
Perm
Others

FY2022
FY2023
1Q
2Q
3Q
4Q
Total
1Q
2Q
3Q
4Q
Total
(7.1%) (23.5%) (11.3%) (13.1%) (13.6%)(2.7%) +22.4%(6.1%)+5.8%+3.8%(3.9%) (28.3%) +14.6%(8.2%)(7.2%)+11.0% +35.7%(7.3%) +15.9% +12.0%(8.7%) (16.7%) (32.6%) (16.9%) (19.5%)(14.0%)+8.4%(5.2%)(8.5%)(5.1%)(16.4%) (31.6%)(8.8%) (26.9%) (20.5%)(23.5%) +25.8%+0.4%(0.7%)(3.8%)© 2024 Milbon Co., Ltd.

48.1%
44.5%
7.4%
0.0%

48.2%
47.0%
4.7%
0.0%

54.7%
39.6%
5.7%
0.0%

56.5%
36.7%
6.8%
0.0%

51.7%
42.0%
6.2%
0.0%

54

54.8%
39.3%
5.9%
0.0%

53.5%
41.7%
4.8%
0.0%

53.9%
39.9%
6.1%
0.0%

61.8%
31.7%
6.4%
0.0%

55.8%
38.4%
5.8%
0.0%

＜Appendix＞Overseas Market Percentage Change
in Sales in Local Currency
South Korea
Net sales
Hair care
Hair coloringPerm% to sales
Hair care
Hair coloring
Perm
Others

FY2022
FY2023
1Q
2Q
3Q
4Q
Total
1Q
2Q
3Q
4Q
Total
+26.6% +20.7% +14.1%+6.9% +16.6%+10.9%+4.8%+1.2% +13.7%+7.4%+24.3% +15.4% +23.1%+9.9% +18.0%+14.4% +13.5%+1.1% +29.0% +13.9%+26.5% +21.4%+9.8%+4.6% +14.9%
+9.2%
+1.4%
(0.0%)
+7.5%
+4.3%
+9.9%
+8.2% +39.5%+8.2% +16.1%+28.0% +28.1% +18.2% +59.1% +32.4%© 2024 Milbon Co., Ltd.

20.1%
76.1%
3.5%
0.4%

20.1%
76.3%
3.1%
0.5%

21.4%
74.5%
3.6%
0.5%

20.5%
75.7%
3.3%
0.5%

20.5%
75.6%
3.4%
0.5%

55

20.7%
74.9%
4.0%
0.4%

21.7%
73.9%
3.8%
0.6%

21.4%
73.6%
4.2%
0.8%

23.3%
71.6%
4.6%
0.5%

21.8%
73.5%
4.2%
0.6%

<Appendix> Hair Care Brand Positioning Map
Premium

BrandsProfessional© 2024 Milbon Co., Ltd.

56

BrandsWith respect to the business forecasts included in this document, any
statement that is not historical fact is a forward-looking statement based on
information available and certain premises that are judged to be rational at
the time of the announcement. Please be aware that actual results may
differ from any forward-looking statements due to risks, uncertainties, and anumber of other factors.
This document has been translated from the Japanese original for reference
purposes only. In the event of any discrepancy between this translated
document and the Japanese original, the original shall prevail.
© 2024 Milbon Co., Ltd.

57