Consolidated Financial Results for the Nine Months Ended September 20, 2015
[Japanese GAAP]
September 30, 2015
Tokyo Stock Exchange, First Section

Name of registrant:
Milbon Co., Ltd.
Code No.:4919
URL http://www.milbon.co.jp
Representative:
Ryuji Sato, President and CEO
Inquiries:
Masahiro Murai, Managing Director
Scheduled filing date for quarterly report: October 30, 2015
Scheduled starting date of dividend payments: Preparation of supplementary materials on the quarterly results: Yes
Holding of an explanatory meeting on the quarterly results: NoneTEL: +81-6-6928-2331(Amounts of less than one million yen have been omitted.)

1. Consolidated financial results for the nine months ended September 20, 2015 (December 21, 2014 - September 20, 2015)(1) Consolidated operating results

Nine months ended September 20, 2015

Net sales
Million yen
19,978%8.4

Nine months ended September 20, 2014

18,437

5.3(Percentages show year-on-year changes.)
Ordinary income
Net income
Million yen%
Million yen%
3,594
18.1
2,331
26.3

Operating income
Million yen%
3,787
17.8
3,215(3.2)(Note) Comprehensive income Nine months ended September 20, 2015: 2,686 million yen [34.1%]
Net income per share

3,042

(2.8)

1,845

(4.8)

Nine months ended September 20, 2014: 2,002 million yen [(22.0)%]

Nine months ended September 20, 2015

Yen
142.40

Diluted net income per share
Yen-

Nine months ended September 20, 2014112.71-(2) Consolidated financial position
Total assets
Million yen
29,612As of September 20, 2015
As of December 20, 2014
(Reference)

EquityNet assets
Million yen
25,61928,138Equity ratio%
86.5

24,104As of September 20, 2015: 25,619 million yen

85.7

As of December 20, 2014: 24,104 million yen

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

Yen

End of 3rd quarter

Year ended December 20, 2014

-Yen
34.00

Year ending December 20, 2015-35.00End of fiscal year

Yen-

Year ending December 20, 2015
(forecast)(Note) Changes to latest dividends forecast: None

Total

Yen
34.00

Yen
68.00

35.00

70.00

3. Consolidated operating forecasts for the fiscal year ending December 20, 2015 (December 21, 2014 - December 20, 2015)(Percentages show year-on-year changes.)
Net sales
Million yen
Year ending December 20, 2015

26,900(Note) Changes to latest performance forecasts: None

Operating income% Million yen
6.6

4,661

Ordinary income% Million yen

4.7

4,369

Net income% Million yen

3.6

2,630

Net income per share
%Yen

0.3

160.62

*Notes(1) Significant changes in subsidiaries during the period(changes in specified subsidiaries resulting in the change in the scope of consolidation)
New: 0 companies (Company name: ): NoneExclude: 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.
: Yes2) 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 As of(including treasury shares)
September 20, 2015
2) Number of treasury shares at the end of the period As of
September 20, 2015
3) Average number of shares during the period
Nine months ended(cumulative)
September 20, 2015

16,558,617 shares
185,940 shares
16,373,324 shares

As ofDecember 20, 2014
As ofDecember 20, 2014
Nine months ended
September 20, 2014

16,558,617 shares
184,672 shares
16,375,107 shares*Status of execution of quarterly review of financial statements
As these financial statements are not subject to the review of the quarterly financial statements pursuant to the Financial Instruments and Exchange Act,
procedures for said review are not completed at the time of disclosure of this report.
*Explanation on the appropriate use of operating forecasts and other special instructions
Operating forecasts and other statements regarding the future presented in these materials are based on information currently available and certain
assumptions deemed to be reasonable, and actual performance may differ substantially due to various factors.

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 20, 2015

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 position............................................................................................................ 3(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 accounting policies, changes in accounting estimates and retrospective restatements ................................................ 43. Quarterly Consolidated Financial Statements ..................................................................................................................................... 5(1)Quarterly Consolidated Balance Sheets ......................................................................................................................................... 5(2)Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income ................................... 7(3)Notes regarding going concern assumption ................................................................................................................................... 9(4)Segment information ...................................................................................................................................................................... 9(5)Notes in case of any significant changes in shareholders’ equity ................................................................................................... 9-1-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 20, 2015

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

Qualitative information on consolidated operating results
During the nine month period ended September 20, 2015, the Japanese economy continued on a moderate recovery track,
highlighted by a recovery in domestic investment supported by the upturn in corporate earnings and other factors, as well as theimprovement trend in both household income and the employment environment. However, the outlook has become uncertain due
to factors including a weakening of exports to regions such as Asia and the U.S., as well as the correction in stock markets
triggered by concerns about an economic slowdown in China. In the beauty industry, amid the challenging conditions withdemographics making it tough for salons to bring in customers and hire new staff, salons are having to broadly meet diversifying
customer needs.
Amid this environment, the Milbon Group believes that it is important to respond to the needs of women in their 40s, the corecustomers of salons, as well as women in their mid-20s, whose understanding of beauty is beginning to change. Efforts are being
focused on salons with the goal of “raising the level of expertise of professionals and supporting higher productivity in order torespond to women, who continue to shine in society, from those awakening to beauty to those with heightened beauty needs.”
Consolidated net sales during the nine month period ended September 20, 2015 increased to 19,978 million yen (up 8.4%year-on-year). In the hair care product category, the increase was largely due to solid sales of hair care products containing
Milbon’s original keratin restoring ingredient CMADK, including Jemile Fran, a new hair care brand for working women in their
20s which was launched in May. In the hair coloring product category, Ordeve Crystal, the hair coloring product line specialized
for gray hair which launched in June and allows women with long hair to beautifully color their hair, saw steady sales. Favorable
sales growth of overseas subsidiaries, centered on East Asia, was another factor for the increase in overall sales, as proactive
activities, primarily education in salons, resulted in an increase in transactions with leading salons.
Operating income was 3,787 million yen (up 17.8% year-on-year), ordinary income was 3,594 million yen (up 18.1%year-on-year) and net income was 2,331 million yen (up 26.3% year-on-year).

Breakdown of net sales by product category and breakdown of net sales into domestic and overseas sales are shown below:[Breakdown of consolidated net sales by product category]
Product category(Unit: Million yen)

Nine months ended
September 20, 2014
AmountRatio (%)

Nine months ended
September 20, 2015
AmountRatio (%)

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

Hair care products

10,43656.6

11,61858.1

1,181

11.3

Hair coloring products

6,654

36.1

7,129

35.7

475

7.1

Permanent wave products

1,167

6.3

1,076

5.4(90)(7.8)

Others

179

1.0

154

0.8(24)(13.9)

Total

18,437100.0

19,978

100.0

1,541

8.4

[Breakdown of net sales into domestic and overseas sales](Unit: Million yen)

Nine months ended
September 20, 2014
AmountRatio (%)

Nine months ended
September 20, 2015
AmountRatio (%)

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

Domestic sales

16,56289.8

17,455

87.4

892

5.4

Overseas sales

1,874

10.2

2,523

12.6

648

34.6

Total

18,437100.0

19,978

100.0

1,541

8.4

-2-Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 20, 2015

(2)

Qualitative information on consolidated financial position
Total assets at the end of the nine month period ended September 20, 2015 increased by 1,473 million yen compared to the end of
the previous fiscal year to 29,612 million yen.
Current assets increased by 675 million yen compared to the end of the previous fiscal year to 14,983 million yen. This was
mainly due to the 2,999 million yen increase in securities (jointly managed designated money trusts, etc.), the 708 million yen
increase in merchandise and finished goods, the 2,849 million yen decline in cash and deposits, and the 375 million yen decline innotes and accounts receivable - trade.
Non-current assets increased by 797 million yen compared to the end of the previous fiscal year to 14,629 million yen. This wasdue mainly to the 411 million yen increase in land in conjunction with the purchase of land adjacent to the Yumegaoka Plant andan increase of 280 million yen in investment securities attributable to factors such as higher prices of listed stocks.
Current liabilities decreased by 85 million yen compared to the end of the previous fiscal year to 3,783 million yen. This was
mainly due to the 505 million yen decrease in accounts payable - other, the 167 million yen decrease in income taxes payable, the312 million yen increase in accounts payable - trade, and the 282 million yen increase in provision for bonuses.
There were no significant changes in non-current liabilities from the end of the previous fiscal year.
Net assets increased by 1,515 million yen compared to the end of the previous fiscal year to 25,619 million yen. This was due
mainly to the increase of 1,165 million yen in retained earnings and the 209 million yen increase in valuation difference on
available-for-sale securities attributable to factors such as higher prices of listed stocks and the 159 million yen increase in foreign
currency translation adjustment due to the weakening of the yen.
As a result, the equity ratio changed from 85.7% at the end of the previous fiscal year to 86.5%. Net assets per share based on thetotal outstanding shares as of the end of the period under review increased from 1,472.10 yen per share at the end of the previous
fiscal year to 1,564.76 yen per share.

(3)

Qualitative information on consolidated operating forecasts
In terms of the full-year forecast there are no changes to the previous consolidated operating forecasts, which were announced onJanuary 21, 2015.

-3-Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 20, 20152.

Summary Information (Notes)(1)

Significant changes in subsidiaries during the period
None

(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(Changes in accounting policies)(Application of the Accounting Standard for Retirement Benefits, etc.)
Regarding the “Accounting Standard for Retirement Benefits” (ASBJ Statement No. 26, May 17, 2012) and “Guidance on
Accounting Standard for Retirement Benefits” (ASBJ Guidance No. 25, March 26, 2015), effective from the first quarter ended
March 20, 2015, the Company has applied the provisions of the main clauses of Paragraph 35 of the Accounting Standard for
Retirement Benefits and Paragraph 67 of Guidance on Accounting Standard for Retirement Benefits, reviewed its calculation
method for retirement benefit obligations and current service costs, and changed its method of attributing expected benefits toperiods from the straight-line basis to the benefit formula basis. In addition, the Company has changed the method for
determining the discount rate from a method based on a period approximate to the expected average remaining working lives ofemployees to a method that uses a single weighted average discount rate reflecting the estimated timing and amount of benefit
payments.
Application of the Accounting Standard for Retirement Benefits and Guidance on Accounting Standard for Retirement Benefits
is in line with the transitional measures provided in Paragraph 37 of the Accounting Standard for Retirement Benefits, and theeffect of the revision to the calculation method for retirement benefit obligations and current service costs has been added to ordeducted from retained earnings as of December 21, 2014.
As a result, as of December 21, 2014, net defined benefit asset decreased by 55,973 thousand yen and retained earnings decreased
by 36,103 thousand yen. The effect of the revision on operating income, ordinary income and income before income taxes andminority interests for the nine month period ended September 20, 2015 is immaterial.

-4-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 20, 20153.

Quarterly Consolidated Financial Statements(1)

Quarterly Consolidated Balance Sheets(Thousand yen)Previous Fiscal Year(As of December 20, 2014)

Current Third Quarter(As of September 20, 2015)

7,386,867
3,427,276–
2,258,355
22,989795,564
460,762(44,289)
14,307,525

4,537,148
3,051,446
2,999,975
2,966,477
27,614
840,980
606,394(46,621)
14,983,414

4,270,850
1,076,672
4,876,552
58,635248,178
10,530,889
448,856

4,402,633
1,062,606
5,288,422
19,507
295,027
11,068,197
378,641

1,908,728
257,649
735,001(49,681)2,851,698
13,831,443
28,138,969

2,189,188
280,393
762,468(49,681)
3,182,368
14,629,207
29,612,622

503,378
1,841,629
769,801
24,43689,198641,2883,869,733

816,265
1,336,255
601,853
22,729371,656
635,052
3,783,812

20,238144,883
165,121
4,034,855

28,787
180,674
209,461
3,993,274

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
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
Net defined benefit asset
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 sales returns
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities-5-Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 20, 2015
(Thousand yen)Previous Fiscal Year(As of December 20, 2014)

Current Third Quarter(As of September 20, 2015)

2,000,000
199,599
21,655,660(535,654)
23,319,606

2,000,000
199,748
22,821,379(540,740)
24,480,387

368,519577,525

310,899
105,089784,508
24,104,114
28,138,969

470,138
91,296
1,138,960
25,619,347
29,612,622

Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-6-Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 20, 2015

(2)

Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Earnings
Nine Months Ended September 20, 2014 and 2015

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
Gain on surrender of insurance
Other
Total non-operating income
Non-operating expenses
Sales discounts
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
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

Nine Months Ended
September 20, 2014
(December 21, 2013 September 20, 2014)
18,437,602
5,720,656
12,716,946
9,501,350
3,215,596-7-(Thousand yen)
Nine Months Ended
September 20, 2015
(December 21, 2014 September 20, 2015)
19,978,880
6,035,176
13,943,704
10,156,440
3,787,263

6,881
32,414
3,116
35,96145,717
10,448
134,540

4,434
34,3782,818
45,751
44,02011,321
142,723

307,533132
307,665
3,042,471

334,0811,740
335,8223,594,164

811
811

–
–

23,53023,5303,019,752
1,219,388(45,344)
1,174,044
1,845,707
1,845,707

11,225
11,225
3,582,939
1,273,922(22,578)
1,251,343
2,331,595
2,331,595

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 20, 2015

Quarterly Consolidated Statements of Comprehensive Income
Nine Months Ended September 20, 2014 and 2015

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
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 ofparent
Comprehensive income attributable to minority
interests

Nine Months Ended
September 20, 2014
(December 21, 2013 September 20, 2014)
1,845,707-8-(Thousand yen)
Nine Months Ended
September 20, 2015
(December 21, 2014 September 20, 2015)
2,331,595

107,100
49,911–
157,0112,002,719

209,006
159,238(13,792)
354,451
2,686,0472,002,719

2,686,047––Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 20, 2015
(3)

Notes regarding going concern assumption
None

(4)

Segment information
The Company omits information on business segments, as it is engaged in the production and distribution of hair-care
products and related merchandise, all of which are deemed to belong to a single business segment.

(5)

Notes in case of any significant changes in shareholders’ equity
None-9-