Consolidated Financial Results for the Six Months Ended June 30, 2022
[Japanese GAAP]
Name of registrant:
Milbon Co., Ltd.
Code No.:4919
URL https://www.milbon.com/en/
Representative:
Ryuji Sato, Representative Director, President & CEO
Inquiries:
Masahiro Murai, Managing Executive Director
Scheduled filing date for quarterly report: August 10, 2022
Scheduled starting date of dividend payments: August 16, 2022
Preparation of supplementary materials on the quarterly results: Yes
Holding of an explanatory meeting on the quarterly results: Yes (For institutional investors and analysts)

August 10, 2022
Tokyo Stock Exchange, Prime Market
TEL: +81-3-3517-3915(Amounts of less than one million yen have been omitted.)

1. Consolidated financial results for the six months ended June 30, 2022 (January 1, 2022 - June 30, 2022)(1) Consolidated operating results
Net sales
Six months ended June 30, 2022%-

Million yen
3,824

%
-

Million yen
4,137

19,558

23.3

3,659

53.2

3,355

Six months ended June 30, 2022: 3,883 million yen [35.0%]

Six months ended June 30, 2022

Basic earnings per share
Yen
88.42

Six months ended June 30, 2021

74.24

(Percentages show year-on-year changes.)
Profit attributable to ownersof parent%
Million yen
%
23.3
2,875
19.1

Ordinary income

Million yen
21,467Six months ended June 30, 2021
Note: Comprehensive income

Operating income

59.5

2,413

66.3

Six months ended June 30, 2021: 2,875 million yen [458.0%]

Diluted earnings per share
Yen-

Note: From the beginning of the fiscal year, sales discounts, previously included 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 may be misleading. Accordingly, the percentage of year-on-year changes in net sales andoperating income are not indicated in the above table. (Ordinary income and profit attributable to owners of parent remain unchanged.) If the figures for the previous fiscal
year were on the same basis as for the current fiscal year, net sales for the second quarter would increase 11.7%, and operating income would increase 15.3%. Please refer tothe Financial Results Presentation Materials for details.

(2) Consolidated financial position
Total assets
Million yen
51,361

As of June 30, 2022
As of December 31, 2021
(Reference)

EquityNet assets
Million yen
43,114

48,238
As of June 30, 2022: 43,114 million yen

Equity ratio%
83.9

40,19783.3

As of December 31, 2021: 40,197 million yen

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

End of 3rd quarter

Year ended December 31, 2021

-

Yen
30.00

Year ended December 31, 2022

-

40.00

End of fiscal year
Yen

Year ended December 31, 2022
(forecast)
Note: Changes to latest dividends forecast: Yes

Total

-

Yen
38.00

Yen
68.00

-

46.00

86.00

3. Consolidated operating forecasts for the fiscal year ending December 31, 2022 (January 1, 2022 - December 31, 2022)(Percentages show year-on-year changes.)
Net salesYear ending December 31, 2022

Million yen
43,900Operating income% Million yen
7,550

Ordinary income% Million yen
7,410Profit attributable to
Basic earnings per shareowners of parent% Million yen
%
Yen
3.5
5,230
2.4
160.88

Note: Changes to latest performance forecast: None
Note: From the beginning of the fiscal year, sales discounts, previously included 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 may be misleading. Accordingly, the percentage of year-on-year changes in net sales andoperating income are not indicated in the above table. (Ordinary income, profit attributable to owners of parent, and basic earnings per share remain unchanged.) If the
figures for the previous fiscal year were on the same basis as for the current fiscal year, net sales would increase 7.5%, and operating income would increase 6.6%. Pleaserefer to the Financial Results Presentation Materials for details.

*Notes(1) Significant changes in subsidiaries during the period(changes in specified subsidiaries resulting in the change in the scope of consolidation): Yes
Exclude: 0 companies (Company name: )New: 1 company (Company name: Milbon Europe GmbH )(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.
: Yes2) Changes in accounting policies other than those in 1) above: Yes3) 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 ofJune 30, 2022
As ofJune 30, 2022
Six months ended
June 30, 2022

33,117,234 shares
591,417 shares
32,517,278 shares

As ofDecember 31, 2021
As ofDecember 31, 2021
Six months ended
June 30, 2021

33,117,234 shares
606,080 shares
32,506,423 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 factor.

○Accompanying Materials – Contents
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
Six months ended June 30, 2021 and 2022 .............................................................................................................

6

Quarterly Consolidated Statements of Comprehensive Income
Six months ended June 30, 2021 and 2022 .............................................................................................................

7(3)

Quarterly Consolidated Statements of Cash Flows............................................................................................................

8(4)

Notes Regarding Quarterly Consolidated Financial Statements ........................................................................................

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

9(Notes in case of any significant changes in shareholders' equity) ................................................................................

9(Changes in the scope of consolidation or the application of the equity method) .......................................................

9(Changes in accounting policies) ...................................................................................................................................

9(Segment information, etc.) ...........................................................................................................................................

9(Significant subsequent events) .....................................................................................................................................

9-1-

1. Qualitative Information on Consolidated Results for the Current Period(1) Explanation on operating results
In the second quarter of the fiscal year, the Japanese economy showed a gradual recovery trend, mainly in consumer spending,amid the normalization of economic activities, despite the continuing impact of COVID-19. Looking ahead, there are manyrisks and uncertainties, such as soaring raw material and energy prices, and Russia's invasion of Ukraine.
In the domestic market, sales of hair coloring products grew significantly due to a recovery in regional cities compared to
the first quarter, when the spread of infections affected the flow of people and an increase in the number of customers who
enjoy multi-tonal hair coloring. In addition, sales of hair care products grew steadily due to increased awareness of the need tocare for the damage from hair coloring and make hair designs enjoyable longer.
In the overseas markets, China continues to be affected by the lockdown due to the zero-corona policy. Although thesituation remains in a severe condition, the impact is minimal with the Company’s continuous efforts. In other major countries,
the U.S. and South Korea, sales of hair care products and hair coloring products were significantly steady, contributing to
growth in consolidated sales.
As a result of the above, consolidated net sales for the second quarter were 21,467 million yen, operating income was
3,824 million yen, ordinary income was 4,137 million yen (up 23.3% year on year), and profit attributable to owners of parent
was 2,875 million (up 19.1% year on year).
Note: From the beginning of the fiscal year, sales discounts, previously included as non-operating expenses, are deducted fromnet sales. As a result, the Company has determined that year-on-year comparisons of net sales and operating income
may be misleading. Accordingly, the percentage of year-on-year changes in net sales and operating income are notindicated. (Ordinary income and profit attributable to owners of parent remain unchanged.) If the figures for theprevious fiscal year were on the same basis as for the current fiscal year, net sales for the second quarter would increase
11.7%, and operating income would increase 15.3%. Please refer to the Financial Results Presentation Materials fordetails.

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

Six months ended June 30,2021

Six months ended June 30,
2022

AmountAmountRatio (%)

Ratio (%)

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

Hair care products

11,28857.7

12,21856.9--

Hair coloring products

7,124

36.4

8,148

38.0

-

-

Permanent wave products

740

3.8

751

3.5

-

-

Cosmetic products

293

1.5

262

1.2

-

-

Other

111

0.6

87

0.4

-

-

19,558100.0

21,467

100.0

-

-

Total

[Breakdown of net sales into domestic and overseas sales](Unit: Million yen)Six months ended June 30,2021

Six months ended June 30,
2022

AmountAmountRatio (%)

Ratio (%)

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

Domestic sales

15,742

80.5

16,627

77.5--

Overseas sales

3,816

19.5

4,839

22.5

-

-

Total

19,558100.0

21,467

100.0

-

-

Note: From the beginning of the fiscal year, sales discounts, previously included as non-operating expenses, are deducted from net-2-

sales. As a result, the Company has determined that year-on-year comparisons of net sales and operating income may be misleading.
Accordingly, changes in amounts and percentages are not indicated in the above table.
Please refer to the Financial Results Presentation Materials for details on the calculation of the figures for the previous fiscal year
using the same method as for the current fiscal year.
(2) Explanation on financial position(i) Assets, liabilities, and net assets
Total assets at the end of the second quarter increased by 3,122 million yen from the end of the previous fiscal year to 51,361
million yen.
Current assets increased by 2,134 million yen from the end of the previous fiscal year to 27,035 million yen. The main
factors for the change were a decrease of 844 million yen in cash and deposits, and an increase of 1,969 million yen inmerchandise and finished goods, 581 million yen in raw materials and supplies, and 306 million yen in notes and accounts
receivable-trade.
Non-current assets increased by 987 million yen from the end of the previous fiscal year to 24,325 million yen.
Current liabilities increased by 180 million yen from the end of the previous fiscal year to 7,490 million yen. Major factors
for the change were decreases of 461 million yen in accounts payable-other and an increase of 719 million yen in accounts
payable-trade.
Non-current liabilities increased by 25 million yen from the end of the previous fiscal year to 756 million yen.
Net assets increased by 2,917 million yen from the end of the previous fiscal year to 43,114 million yen. The main factors
for the change were increases of 1,830 million yen in retained earnings and 1,148 million yen in foreign currency translation
adjustment resulting from the depreciation of the yen.
As a result, the equity ratio changed from 83.3% at the end of the previous fiscal year to 83.9%. Net assets per share basedon the total number of shares issued and outstanding at the end of the fiscal year were 1,325.54 yen, compared to 1,236.41 yenat the end of the previous fiscal year.
(ii) Cash flows
Cash and cash equivalents ("funds") at the end of the second quarter of the current fiscal year decreased by 847 million yen
from the end of the previous fiscal year to 12,465 million yen.
(Cash flows from operating activities)
Net cash provided by operating activities was 1,201 million yen. This was mainly due to the recording of quarterly profit
before income taxes of 4,138 million yen, depreciation and amortization of 1,014 million yen, an increase in inventories of
2,202 million yen, an increase in notes and accounts receivable-trade of 261 million yen, and income taxes paid of 1,304
million yen.
(Cash flows from investing activities)
Net cash used in investing activities was 1,322 million yen. This was mainly due to expenditures of 811 million yen for thepurchase of tangible fixed assets, 393 million yen for the purchase of intangible fixed assets, and 148 million yen for payments
for guarantee deposits.
(Cash flows from financing activities)
Net cash used in financing activities was 1,234 million yen. This was mainly due to dividends paid to shareholders of 1,233
million yen.
(3) Explanation on forward-looking statements including consolidated operating forecasts
There is no change from the previous forecast (announced on February 10, 2022) for the full fiscal year.
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, 2021)
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
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-4-

Current 2nd quarter(As of June 30, 2022)

13,350,147
4,673,258
200,000
4,537,613
41,842
1,360,902
740,268(3,271)
24,900,761

12,505,229
4,979,735
200,000
6,506,960
60,391
1,942,289
843,069(2,009)27,035,666

8,957,598
2,840,613
4,995,014
269,654753,381
17,816,262
1,516,714

9,161,610
2,942,362
5,009,029
332,572
857,140
18,302,715
1,680,387

1,610,607
32,527438,540
577,944
1,393,519(48,387)
4,004,752
23,337,729
48,238,490

1,524,149
3,692
440,321800,810
1,619,605(46,087)
4,342,491
24,325,594
51,361,260

936,108
3,495,694
1,401,441
511,612965,353
7,310,210

1,655,393
3,033,966
1,490,788
508,509
802,0317,490,688

7,753
595
608,139
114,611731,099
8,041,309

8,697
670
613,281
133,590756,2398,246,928

(Thousand yen)Previous fiscal year
(As of December 31, 2021)
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 2nd quarter(As of June 30, 2022)

2,000,000
246,299
38,834,669(2,080,393)
39,000,575

2,000,000
274,537
40,665,030(2,030,365)
40,909,202

100,262
68,821
850,537
176,984
1,196,605
40,197,181
48,238,490

40,3281,999,478
165,3222,205,129
43,114,332
51,361,260

(2) Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Earnings
Six Months Ended June 30, 2021 and 2022

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
Subsidy income
Other
Total non-operating income
Non-operating expenses
Sales discounts
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 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

Six months ended June 30,
2021(January 1, 2021
- June 30, 2021)
19,558,798
6,650,862
12,907,935
9,248,793
3,659,142(Thousand yen)Six months ended June 30,
2022(January 1, 2022
-June 30, 2022)
21,467,252
7,198,250
14,269,001
10,444,920
3,824,080

12,871
16,94438,501
1,193
5,499
32,01926,787
133,816

10,452
7,543
257,286
1,520
18,06828,68756,559380,118

341,758-

94,54264,517

1,356
437,657
3,355,300

2,122
66,6404,137,558

19,087
19,087

923
448
1,372

355
355
3,374,032
1,125,498(164,663)
960,835
2,413,196
2,413,196

604
604
4,138,326
1,418,446(155,275)
1,263,171
2,875,154
2,875,154-6-

Quarterly Consolidated Statements of Comprehensive Income
Six Months Ended June 30, 2021 and 2022

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

Six months ended June 30,
2021(January 1, 2021
- June 30, 2021)
2,413,196(Thousand yen)Six months ended June 30,
2022(January 1, 2022
- June 30, 2022)
2,875,154

11,378106,841
336,3258,180
462,726
2,875,923(59,934)(68,821)
1,148,941(11,661)
1,008,524
3,883,679

2,875,923

3,883,679

-

-

-7-

(3) Quarterly Consolidated Statements of Cash FlowsSix months ended June 30,
2021(January 1, 2021
- June 30, 2021)
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Decrease (increase) in net defined benefit asset
Interest and dividend income
Share of loss (profit) of entities accounted for using
equity method
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities
Loss (gain) on sales of non-current assets
Loss on retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Other
SubtotalInterest and dividend income received
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payments of loans receivableCollection of loans receivable
Purchase of investment securities
Proceeds from sales of investment securities
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Other
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net decrease (increase) in treasury shares
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-8-(Thousand yen)Six months ended June 30,
2022(January 1, 2022
- June 30, 2022)

3,374,032
856,853(10,519)
20,45312,805(29,815)

4,138,326
1,014,981(3,995)(9,376)(18,584)(17,995)

94,54264,517(20,161)(4,586)355(163,281)(704,825)
515,897(333,458)
3,608,293
30,963(1,049,930)
2,589,327(198)(60,592)
(448)
(923)
604
(261,967)(2,202,624)
595,929(749,068)
2,488,583
17,426(1,304,328)
1,201,680(1,635,322)(305,389)(148,000)
963(12,150)
11,621(24,380)
21,716
4,052(2,086,889)(811,174)
977(393,579)
1,755(12,681)546(148,947)
43,258(3,146)(1,322,990)(1,130)(935,679)(936,810)(696)(1,233,982)(1,234,679)

202,553508,609(231,819)
12,307,591
12,075,771(847,379)
13,312,634
12,465,255

(4) Notes regarding quarterly consolidated financial statements(Notes regarding going concern assumption)
None(Notes in case of any significant changes in shareholders' equity)
None(Change in the scope of consolidation or scope of the application of the equity method)
The newly established Milbon Europe GmbH was included in the scope of consolidation in the second quarter of the current
fiscal year.
(Changes in accounting policies)(Change in valuation method for inventories)
The Company used the first-in, first-out method for the valuation of merchandise; however, beginning in the first quarter ofthe current fiscal year, we have changed to the cost method based on the weighted average method. This change in thevaluation method is aimed at realizing a more appropriate calculation of periodic profit and loss by smoothing out the impact
of fluctuations in purchase prices, triggered by an increase in overseas product purchases, etc.
As the impact of this change is immaterial, it has not been applied retrospectively.

(Application of Accounting Standard for Fair Value Measurement)
The Company has applied the "Accounting Standard for Fair Value Measurement" (ASBJ Statement No. 30, July 4, 2019;
hereinafter referred to as the "Fair Value Measurement Standard") and other standards from the beginning of the first quarterof the current fiscal year, and under the transitional treatment stipulated in paragraph 19 of the Fair Value Measurement
Standard and paragraph 44-2 of the "Accounting Standard for Financial Instruments" (ASBJ Statement No. 10, July 4,2019), the new accounting policy stipulated by the Fair Value Measurement Standard will be applied in the future.
There is no impact on the quarterly consolidated financial statements.
(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-9-