Consolidated Financial Results for the Nine Months Ended September 20, 2012
[Japanese GAAP]
September 28, 2012
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 26, 2012
Scheduled date for commencement of dividend payments: Preparation of supplementary materials on the quarterly results: Yes
Holding of an explanatory meeting on the quarterly results: NoTEL: +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, 2012 (December 21, 2011- September 20, 2012)(1) Consolidated operating results(Percentages show year-on-year changes)
Net sales
Operating income
Ordinary income
Net income
Million yen%
Million yen%
Million yen%
Million yen%
Nine months ended September 20, 2012
16,099
8.0
3,119
13.5
2,915
13.8
1,741
18.5
Nine months ended September 20, 2011
14,9003.9
2,749(0.8)
2,561(1.5)
1,469
(3.5)
(Note) Comprehensive income
Nine months ended September 20, 2012: 1,757 million yen [21.2%]
Nine months ended September 20, 2011: 1,450 million yen [―%]

Nine months ended September 20, 2012
Nine months ended September 20, 2011

Net income per share
Diluted net income per share
YenYen126.37106.65-(2) Consolidated financial position
Total assets
Million yen
22,862As of September 20, 2012
As of December 20, 2011
(Reference)

EquityNet assets
Million yen
19,905

22,592Equity ratio%
87.1

19,059As of September 20, 2012: 19,905 million yen

84.4

As of December 20, 2011: 19,059 million yen

2. Payment of dividends
Annual dividend
End of 1st quarterEnd of 2nd quarterEnd of 3rd quarterEnd of fiscal year

Yen

Yen

Yen

Yen

Yen-

34.00

64.00

-

32.00

64.00

Year ended
December 20, 2011
Year ending
December 20, 2012
Year ending
December 20, 2012
(forecast)

-

30.00

-

32.00

Total(Note) Changes to latest dividends forecast: None
3. Consolidated operating forecasts for the year ending December 20, 2012 (December 21, 2011 - December 20, 2012)(Percentages show year-on-year changes)

Year ending December 20, 2012

Net sales
Million yen
21,470%4.6(Note) Changes to latest operating forecasts: None

Operating income
Million yen%
3,880
2.3

Ordinary income
Million yen%
3,610
1.8

Net income
Million yen%
2,050
(11.1)Net income per shareYen
148.74

*Notes(1) Significant changes in subsidiaries during the period(changes in specific subsidiaries accompanied by changes in the scope of consolidation)
New: 1 company (Company name: MILBON (THAILAND) CO., LTD.): Yes
Exclude: 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(including treasury stock)2) Number of treasury stock at the end of the period

Nine months ended
13,798,848 shares Year ended
13,798,848 shares
September 20, 2012
December 20, 2011
Nine months ended
18,580 shares Year ended
17,728 shares
September 20, 2012
December 20, 2011
3) Average number of shares during the period
Nine months ended
13,780,648 shares Nine months ended
13,782,251 shares(cumulative)
September 20, 2012
September 20, 2011
*Status of execution of quarterly review of financial statements
As these consolidated financial statements are not subject to the review of the quarterly financial statements pursuant to the Financial Instruments andExchange Act, procedures for said review were 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, 2012

Contents of supplementary materials
1. Qualitative information on consolidated financial results for the current period ....................................................................... 2(1)Qualitative information on consolidated operating results ................................................................................................ 2(2)Qualitative information on consolidated financial conditions........................................................................................... 2(3)Qualitative information on consolidated operating forecasts ............................................................................................ 3

2. Summary information (Notes) ................................................................................................................................................... 3(1)Changes in significant subsidiaries during the period ....................................................................................................... 3(2)Application of accounting methods specific to the preparation of quarterly consolidated financial statements ............... 3(3)Changes in accounting policies, changes in accounting estimates and retrospective restatements ................................... 3(4)Additional information ..................................................................................................................................................... 3

3. Quarterly Consolidated Financial Statements ............................................................................................................................ 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
Quarterly Consolidated Nine Month Periods Ended September 20, 2011 and 2012 ......................................................... 6
Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Nine Month Periods Ended September 20, 2011 and 2012 ......................................................... 7(3)Notes regarding going concern assumption ...................................................................................................................... 8(4)Segment information ........................................................................................................................................................ 8(5)Notes in case of any significant changes in shareholders’ equity ...................................................................................... 8-1-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 20, 2012

1.
(1)Qualitative information on consolidated financial results for the current period
Qualitative information on consolidated operating results
During the nine month period ended September 20, 2012, the nation’s economy continued to be mired in uncertainty, in spite of
the recovery trend backed mainly by public investment associated with the disaster recovery, due in part to the deterioration ofJapan-China relations, in addition to the slowdown of the U.S. and European economies and the consistently strong yen. The
climate in the beauty industry also remained harsh.
Under such circumstances, the Milbon Group promoted initiatives in order for salons to realize sustainable growth as well as
increased revenues and profits, under the theme of “Nurturing ‘personal production capabilities’ that meet diverse value andsupporting ‘an increase in yearly usage amounts per customer.’”
Consolidated net sales during the nine month period ended September 20, 2012 increased by 8.0% compared to the same
period of the previous consolidated fiscal year to 16,099 million yen. This was primarily due to expanded sales of permanentand semi-permanent hair coloring products; “Ordeve Beaute,” product line specialized for gray hair and “Pearl and WhityLine,” additional color lines for hair coloring brand “Ordeve.” The strong sales of DEESSE’S Elujuda, leave-in treatment
which was launched in February also contributed to the sales increase. Favorable sales growth of the overseas subsidiaries
results from the proactive educational activities conducted in the salons was another factor of the increase.
Operating income stood at 3,119 million yen (up 13.5% year-on-year), which was primarily due to the effects of increased
revenues and the improvements in the cost-to-sales ratio. As a result, ordinary income also increased by 13.8% year-on-year to2,915 million yen. And net income increased to 1,741 million yen (up 18.5% year-on-year).
Breakdown of net sales by product category is shown below:[Breakdown of consolidated net sales by product category]Previous Consolidated Third Quarter
Current Consolidated Third Quarter
Increase (Decrease)
Product Category
Amount (Million yen)
Ratio (%)
Amount (Million yen)
Ratio (%) Amount (Million yen)
Hair care products
7,467
50.1
8,007
49.7
539
Hair coloring products
5,880
39.5
6,615
41.1
735
Permanent wave products
1,360
9.1
1,282
8.0(77)
Others
191
1.3
193
1.2
2
Total
14,900100.0
16,099100.0
1,199(2)Qualitative information on consolidated financial conditions
Total assets at the end of the third quarter ended September 20, 2012 increased by 270 million yen compared to the end of theprevious consolidated fiscal year to 22,862 million yen.
Current assets increased by 8 million yen compared to the end of the previous consolidated fiscal year to 10,624 million yen.
This was due mainly to the increases in cash and deposits and in merchandise and finished goods by 112 million yen and 77
million yen, respectively; as well as the decrease in notes and accounts receivable-trade by 249 million yen.
Noncurrent assets increased by 261 million yen compared to the end of the previous consolidated fiscal year to 12,237 million
yen.
Current liabilities decreased by 561 million yen compared to the end of the previous consolidated fiscal year to 2,766 million
yen. This was due mainly to the decreases in accounts payable-other and income taxes payable by 385 million yen and 574
million yen, respectively; as well as increases in accounts payable-trade and provision for bonuses by 197 million yen and 222
million yen, respectively.
There were no material changes in noncurrent liabilities from the end of the previous consolidated fiscal year.
Net assets increased by 845 million yen compared to the end of the previous consolidated fiscal year to 19,905 million yen.
This was due mainly to the increase of 831 million yen in retained earnings.
As a result, equity ratio changed from 84.4% at the end of the previous consolidated fiscal year to 87.1%. Net assets per sharebased on total outstanding shares as of the end of the accounting period increased from 1,383.02 yen per share at the end of theprevious consolidated fiscal year to 1,444.47 yen per share.

-2-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 20, 2012(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
on January 18, 2012.

2.
(1)

Summary information (Notes)
Significant changes in subsidiaries during the period
Starting from the second quarter ended June 20, 2012 the newly-established MILBON (THAILAND) CO., LTD. has been
included in the scope of consolidation.

(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(Changes in accounting policies which are difficult to distinguish from changes in accounting estimates)
Starting from the second quarter ended June 20, 2012 the Milbon Co., Ltd. (the “Company”), in conjunction with revision of
the Corporate Tax Law, has applied the depreciation method pursuant to the revised Corporate Tax Law to property, plant andequipment acquired on and after April 1, 2012.
The effects of this change on the profit and loss of the nine month period ended September 20, 2012 are minimal.

(4)

Additional information
In terms of changes in accounting policies and corrections of errors contained in reports from prior periods that are conducted
after the beginning of the first quarter ended March 20, 2012 the Company has applied the “Accounting Standard for
Accounting Changes and Error Corrections” (Accounting Standards Board of Japan (“ASBJ”) Statement No. 24, December 4,2009) and the “Guidance on Accounting Standard for Accounting Changes and Error Corrections” (ASBJ Guidance No. 24,
December 4, 2009).

-3-

Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 20, 2012

3.
(1)

Quarterly Consolidated Financial Statements
Quarterly Consolidated Balance Sheets
Previous Consolidated Fiscal Year(As of December 20, 2011)(Thousand yen)
Current Consolidated Third Quarter(As of September 20, 2012)

5,079,642
3,031,626
1,678,930
16,428526,193295,403(11,616)
10,616,608

5,191,952
2,781,736
1,755,947
29,705549,732
378,911(62,998)
10,624,987

3,858,485
924,432
4,763,766
12,244
194,473
9,753,401
512,138

3,792,278
914,935
4,763,766
110,593
179,577
9,761,152
523,445

1,017,033
722,278(28,772)
1,710,540
11,976,079
22,592,688

1,020,463
1,007,691(74,962)
1,953,192
12,237,789
22,862,776

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable – trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent 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
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets-4-Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 20, 2012

Previous Consolidated Fiscal Year(As of December 20, 2011)(Thousand yen)
Current Consolidated Third Quarter(As of September 20, 2012)

419,740
1,448,203
1,016,927
45,73568,354
329,065
3,328,026

617,558
1,062,466
442,130
15,936291,195
337,086
2,766,373

11,612
37,200156,276
205,088
3,533,115

38,817
152,361
191,178
2,957,551

2,000,000
199,120
17,257,339(48,652)
19,407,806

2,000,000
199,120
18,089,286(50,668)
20,237,737(206,624)(141,609)(348,233)
19,059,573
22,592,688(204,411)(128,100)(332,512)
19,905,224
22,862,776

Liabilities
Current liabilities
Accounts payable – trade
Accounts payable – other
Income taxes payable
Provision for sales returns
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Provision for retirement benefits
Provision for loss on guarantees
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-5-Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 20, 2012

(2)

Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Earnings
Quarterly Consolidated Nine Month Periods Ended September 20, 2011 and 2012

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Company house defrayment income
Insurance cancellation margin of profit
Other
Total non-operating income
Non-operating expenses
Sales discounts
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Reversal of allowance for doubtful accounts
Reversal of provision for loss on guarantees
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Provision of allowance for doubtful accounts
Loss on adjustment for changes of accounting standard
for asset retirement obligations
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, 2011
(December 21, 2010 September 20, 2011)
14,900,317
4,920,050
9,980,267
7,230,861
2,749,405(Thousand yen)
Nine Months Ended
September 20, 2012
(December 21, 2011 September 20, 2012)
16,099,562
5,088,816
11,010,745
7,890,985
3,119,760

846
23,88938,9097,813
7,564
79,024

1,461
20,917
43,5789,358
75,316

254,786
11,680266,466
2,561,964

278,143
1,862
280,005
2,915,071

1,555
610
1,200
3,366

-

5,129
70,390-2,660
12,64728,320-103,840
2,461,489
1,163,098(171,433)
991,665
1,469,824
1,469,824

15,3072,899,763
1,240,149(81,878)
1,158,270
1,741,492
1,741,492-6-Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 20, 2012

Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Nine Month Periods Ended September 20, 2011 and 2012

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests-7-

Nine Months Ended
September 20, 2011
(December 21, 2010 September 20, 2011)
1,469,824(Thousand yen)
Nine Months Ended
September 20, 2012
(December 21, 2011 September 20, 2012)
1,741,492(16,085)(3,526)(19,611)1,450,212

2,212
13,50815,7201,757,213

1,450,212-

1,757,213-Milbon Co., Ltd. (4919) Consolidated Financial Results for the Nine Months Ended September 20, 2012(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-8-