Consolidated Financial Statements for Third Quarter Ended September 20, 2011
(Japanese standard)
30-Sep-11
Name of registrant
Code Number

Milbon Co., Ltd.
4919

(First Section of the Tokyo Stock Exchange)(URL: http://www.milbon.co.jp)

Representative :Officer in Charge of Contact:

Ryuji Sato, President
Masahiro Murai, Executive Director (TEL) (06) 6928-2331

Scheduled filing date for quarterly report
October 28, 2011
Preparation of supplementary materials on the quarterly results: Yes
Holding of an explanatory meeting on the quarterly results: No

Scheduled date for commencement of dividend payments: -(Amounts of less than one million yen are rounded off.)

1. Consolidated financial results for third quarter ended September 20, 2011 (December 21, 2010 – September 20, 2011)(Percentages show year on year changes)(1) Consolidated Operating Results (Accumulative)
Sales

Operating income

million yen

Third quarter ended
September 20, 2011
Third quarter ended
September 20, 2010

Ordinary income%

million yen

14,900

3.9

2,749

-0.8

2,561

-1.5

1,469

-3.5

14,345

1.5

2,770

18.7

2,601

18.2

1,523

28.8

Quarterly net income
per share%

Quarterly net income%

million yen%

Quarterly diluted
Quarterly net income per
share

yen

Third quarter ended
September 20, 2011
Third quarter ended
September 20, 2010

million yen

yen

106.65-

121.59-(2) Consolidated Financial Conditions
Total Assets

Third quarter ended
September 20, 2011
Year ended December 20,
2010(Reference) Equity capital

Net assets

Equity ratio (Ratio of
equity to total assets)

Net assets per share

million yen

million yen%

yen

21,586

18,31284.8

1,328.77

20,843

17,69984.9

1,412.25

Third quarter ended September 20, 2011
Year ended December 20, 2010

18,312 million yen
17,699 million yen

2. Payment of Dividends
End of
1stquarter

End of
2ndquarteryen

Annual dividends
End of
End of3rd
fiscalquarter
year

yen

yen

Total

yen

yen

Year ended December 20,
27.00
33.00
60.00
2010
Year ended December 20,
30.00
2011
Year ended December 20,
30.00
60.00
2011 (forecast)
Note: Changes to dividends forecast during the current quarter: None
Breakdown of the term-end divided for the term ended December 2010 Normal dividend 28.00 yen Commemorative dividend 5.00
yen
3. Financial Results Forecast for the Year Ending December 20, 2011 (December 21, 2010 – December 20, 2011)(Percentages show rate of change against previous term)

Sales
million yen

Operating income%

million yen

Ordinary income%

Full year
20,5003.8 3,780
5.6 3,510
Note: Corrections of the results forecast during the current quarter: None

million yen

Net income
per share

Net income%

5.5 2,060

million yen

%

yen

12.5

149.43

4. Other (For details, please refer to “2. Other information”, p.4 of the Supplementary Materials.)(1)

Transfer of significant subsidiaries during the quarter: None

New - companies (company name), Excluded - companies (company name)Note: This means whether or not there were any transfers of specific subsidiaries involving changes in the scope of consolidation during the current quarterly
accounting period.

(2)

Application of simplified accounting methods and specific accounting methods: Yes
Note: This means whether or not simplified accounting methods or accounting methods specific to the preparation of quarterly consolidated financial statements
were applied.

(3)

Changes in accounting policies, procedures and methods, etc.

1) Changes due to amendment to the accounting standards, etc.; Yes
2) Changes other than those in 1) above; None
Note: This means whether or not there were any changes in accounting policies, procedures and methods, etc., related to the preparation of the quarterly
consolidated financial statements that were described in “Summary of Significant Accounting Policies for the Preparation of Quarterly Consolidated
Financial Statements”.

(4)

Number of shares outstanding (common shares)

1) Number of shares outstanding at
term-end (including treasury stock)2) Number of treasury shares at term-end
3) Average number of shares throughaccounting period (quarterly
consolidated accumulative period)

3rd quarter ended
September 20,
2011
3rd quarter ended
September 20,
2011
3rd quarter ended
September 20,
2011

13,798,848 sharesYear ended
December 20, 2010

12,544,408 shares

17,499 sharesYear ended
December 20, 2010

11,594 shares

13,782,251 shares

3rd quarter ended
September 20,
2010

12,532,839 shares*Display of the state of implementation of quarterly review procedures
 This quarterly financial statement is not subject to the quarterly review procedures based on the Financial Instruments and Exchange Act and the company has notcompleted the quarterly financial statement review procedures based on the Financial Instruments and Exchange Act at the time of disclosure of this quarterly financial
statement.

*Explanation of the proper use of earnings forecasts and other special notes.
 Statements concerning the future such as the earnings forecasts given in this document are based on information currently in the possession of the Company and on
assumptions that the Company considers reasonable. Actual results may differ greatly due to various factors. Please see “1. Qualitative information on the consolidated
results for the current quarter, etc. (3) Qualitative information on consolidated earnings forecast” on p.3 of the “Consolidated Financial Statements for the Third
Quarter of the Fiscal Term Ended September 20, 2011 - Supplementary Materials” with regard to the assumptions that the forecasts are based on and the use of theforecast.
 The Company carried out a share split at a ratio of 1.1 shares for each common share on December 21, 2010.

Milbon Co., Ltd. (4919) Consolidated Financial Statements for Third Quarter Ended September 20, 2011 Contents of the supplementary materials

1.

Qualitative information on the consolidated results for the current quarter, etc. ................ 2(1)

Qualitative information on consolidated operating results ............................................. 2(2)

Qualitative information on consolidated financial conditions ........................................ 3(3)

Qualitative information on financial results forecasts .................................................... 3

2.

Other information ............................................................................................................... 4(1)

Overview of transfers of significant subsidiaries ........................................................... 4(2)

Overview of simplified accounting methods and specific accounting methods ............. 4(3)

Overview of changes in accounting policies, procedures and methods, etc. .................. 4

3.

Quarterly Financial Statements ........................................................................................... 5(1)

Third Quarter Balance Sheet .......................................................................................... 5(2)

Third Quarter Consolidated Statement of Earnings ....................................................... 7[3rd quarter consolidated cumulative fiscal period]............................................................ 7[3rd quarter consolidated fiscal period] .............................................................................. 8(3)

Quarterly Consolidated Statement of Cash Flows .......................................................... 9(4)

Notes concerning the assumption of the business as a going concern.......................... 10(5)

Segment information .................................................................................................... 10(6)

Notes in cases of extreme variation in the amount of shareholders’ equity ................. 10-1-

Milbon Co., Ltd. (4919) Consolidated Financial Statements for Third Quarter Ended September 20, 2011

1.

Qualitative information on the consolidated results for the current quarter, etc.
(1) Qualitative information on consolidated operating results
During the consolidated cumulative period to the end of the third quarter, the Japanese economy went through difficult
conditions, including suffering a nationwide stagnation in production and a stalling in exports due to the impact of the Great
East Japan Earthquake, which occurred on March 11, and a slump in personal consumption, etc. Business conditions
subsequently turned to recovery due to the rapid re-establishment of the supply chain and the easing of the mood of restraint,
but due also to factors such as the slowdown of the global economy and the progress of yen appreciation, etc., there was astrong sense of uncertainty over the future.
It is estimated that the severe business environment continued in the beauty industry too because of the decline in thenumber of customers due to the extension of the cycle of customer visits, which still shows no sign of recovery, and the
downturn in the customer mindset that has arisen out of lifestyle protection awareness and budget-mindedness.
In such conditions, the Milbon Group supported the beauty techniques of hair designers and made efforts towards
proposal activities for hair care products centered on salon treatments and pro-specific salon colors as practical items that willraise the quality of salon menus, including a pleasant feeling of running the fingers through the hair and beauty of texture,etc.
With regard to our overseas subsidiaries, uniquely Japanese salon treatment menus and new straight perm menus focusedon a sense of luster have attracted attention in America where they are totally new categories in the industry. In the Chinese
market, Japanese hair styles have become popular among Chinese women, who are sensitive to trends, and the sense of
expectation felt towards Japanese beauty techniques and products has heightened. Furthermore, in the South Korean market
too, the number of inquiries for educational support activities from good quality/ large salons in the region has increased
rapidly against the backdrop of a hair color boom.
Although the company was in a difficult environment, consolidated sales during the cumulative third quarter consolidated
period under review increased 555 million yen to 14,900 million yen (an increase of 3.9% in comparison to the same period
last year).
Marketing and administrative expenses finished at 7,230 million yen (an increase of 6.8% in comparison to the same
period last year) as a result of new product sales promotion costs and labor costs exceeding those for the previous term.
Operating income finished at 2,749 million yen (a decrease of 0.8% in comparison to the same period last year) due to theincrease in marketing and administrative expenses, and ordinary income finished at 2,561 million yen (a decrease of 1.5% incomparison to the same period last year). In addition, quarterly net income finished at 1,469 million yen (a decrease of 3.5%
in comparison to the same period last year) because the company posted a loss of revaluation of investments in securities anda loss on asset retirement obligations, etc., under extraordinary losses.

Breakdown of sales by product category is shown as follows:[Breakdown of consolidated sales by product category]
Product Category
Hair care products
Hair coloring products
Permanent wave products
Others
Total

Previous 3rd quarter consolidated
cumulative fiscal period
Sales amount
Ratio (%)
(million yen)
7,309
51.0
5,314
37.0
1,514
10.6
206
1.4
14,345100.0

3rd quarter consolidated cumulative
fiscal period under review
Sales amount
Ratio (%)
(million yen)
7,467
50.1
5,880
39.5
1,360
9.1
191
1.3
14,900100.0

Increase/
Sales amount(million yen)
158
565
-153
-15
555

(Hair care products)
In an environment where competition among hair care products for the public market and the pro-use market of
specialist products for beauty salons continues to be severe, the industry overall is estimated to have grown slightly on
account of positive efforts towards hair care, centered on salon treatment menus that repair hair damage.
In these circumstances, the Company group saw sales of hair care products perform steadily, centered on
DEESSE’S NEU DUE and DEESSE’S LINKAGE-µ (mu), which was launched in February, and FIERLI, a hair care
range for difficult hair that tempers strong waves and controls hair gently for a light sensation when the fingers are
passed through the hair, which was launched in April.
In addition, because the market’s evaluation of the Nigelle Dressia Collection Wax Series, new styling agents thatrealize casual texture creation, which were launched in September is heightening, although gradually, sales of hair careproducts exceeded sales for the same period of the previous fiscal year.
(Hair coloring products)
Because of the increased impact of the desire of consumers to maintain their current standards of living and lessen
expenses, the competition with home color products that allow users to dye their hair casually at home intensified
further and the size of the industry overall is estimated to have decreased slightly.
In these circumstances, the Company group saw overall sales of fashion color agents increase significantly because
proposal activities for seasonal colors aimed at customers (fashion colors matched to the seasons) based on the
additional colors for ORDEVE (Smoky Line & Sheer Line) launched in March and September have been evaluatedhighly in the market.
In addition, sales of hair coloring products exceeded sales for the same period of the previous fiscal year because
overall sales of grey color agents continued to perform steadily through the promotion of new charm creation for adultwomen based on ORDEVE BEAUTE, a new grey color agent launched in July that expresses a wide range of colors.

-2-

Milbon Co., Ltd. (4919) Consolidated Financial Statements for Third Quarter Ended September 20, 2011

(Permanent wave products)
It is estimated that the industry overall contracted slightly due to a decrease in perm style needs and straight perm
menus associated with changes in trends.
In these circumstances, the Company group saw sales of permanent wave products fall below sales for the same
period of the previous fiscal year because it was not possible to stave off the decline in overall sales of straight perm
menus even though it made efforts in straight perm menu proposal activities linked to sales activities for FIERLI, thehair care product for difficult hair launched in April.
(Others)
There are no particular items to present.

(2) Qualitative information on consolidated financial conditions
1) Assets, liabilities and net assets
Total assets at the end of the 3rd quarter consolidated fiscal period increased by 743 million yen to 21,586 million
yen compared to the end of the previous consolidated fiscal year.
Current assets increased 1,156 million yen to 9,192 million yen compared to the end of the previous consolidated
fiscal year. Major variable factors were increases of 856 million yen in cash and bank deposits and 323 million yen ingoods and products respectively.
Fixed assets decreased by 413 million yen to 12,394 million yen compared to the end of the previous consolidated
fiscal year. Major variable factors were a decrease of 397 million yen in property and equipment in association withthe posting of depreciation and amortization expenses, and a decrease of 104 million yen in investment securities inassociation with decreases in the market values of listed shares.
Current liabilities increased 127 million yen to 2,853 million yen compared to the end of the previous consolidated
fiscal year. Major variable factors were increases of 104 million yen in accounts payable and 214 million yen inreserve for bonuses, and a decrease of 337 million yen in accrued expenses payable.
There was no great variation in mixed liabilities compared to the end of the previous consolidated fiscal year.
Net assets increased 612 million yen to 18,312 million yen compared to the end of the previous consolidated fiscal
year. The major variable factor was an increase of 642 million yen in retained earnings.
As a result, the company’s equity ratio changed from 84.9% at the end of the previous consolidated fiscal year to84.8%. Net assets per share based on total outstanding shares at the end of the fiscal year decreased from 1,412.25
yen per share at the end of the previous consolidated fiscal year to 1,328.77 yen per share.
2) Cash flows
Cash and cash equivalents (hereinafter referred to as “funds”) at the end of the 3rd quarter consolidated fiscal
period increased 855 million yen compared to the end of the previous consolidated fiscal year to stand at 3,525
million yen at the end of the 3rd quarter consolidated fiscal period as a result of using funds acquired in operating
activities for the payment of corporate taxes, etc., due to tax payments, and the payment of dividends, etc.
Cash flows during the 3rd quarter consolidated cumulative fiscal period and the factors determining them were as
follows.
(Cash Flows from Operating Activities)
Funds obtained from operating activities were 2,110 million yen. This was mainly the result of 2,461 million yen
recorded in quarterly net income before income taxes and minority interests, depreciation and amortization expenses
of 745 million yen and the payment of corporate and other taxes of 1,237 million yen.
(Cash Flows from Investing Activities)
Funds used for investing activities were 420 million yen. The funds were mainly used for the purchase of property
and equipment worth 267 million yen and payments due to the acquisition of intangible fixed assets worth 182
million yen.
(Cash Flows from Financing Activities)
Funds used as a result of financing activities were 832 million yen. This was mainly the result of dividend
payments for shareholders of 822 million yen.

(3) Qualitative information on financial results forecasts
There is no change in the full year forecast from the previous forecast (announced January 19, 2011).

-3-

Milbon Co., Ltd. (4919) Consolidated Financial Statements for Third Quarter Ended September 20, 2011

2.

Other information(1) Overview of transfers of significant subsidiaries
None(2) Overview of simplified accounting methods and specific accounting methods
1) Overview of transfers of significant subsidiaries(Valuation methods for inventories)
The calculation of inventories at the end of the 3rd quarter consolidated fiscal period is calculated by omitting aphysical inspection and using a rational method of calculation based upon the physically inspected amounts for theend of the previous consolidated fiscal year.
(Calculation methods for depreciation expenses for fixed assets)
Fixed assets using a fixed percentage depreciation method are calculated by dividing the amount of depreciation
expenses for the consolidated fiscal year proportionally between the respective accounting periods.
2)

Accounting methods specific to the preparation of quarterly financial statements
None(3) Overview of changes in accounting policies, procedures and methods, etc.
The company has applied the “Accounting Standard for Asset Retirement Obligations” (ASBJ Statement No.18;
March 31, 2008) and the “Guidance on Accounting Standard for Asset Retirement Obligations” (ASBJ Guidance
No.21; March 31, 2008) due to the application of said standard, etc., from the 1st quarter consolidated fiscal period.
By doing so, income before income taxes and minority interests has decreased by 31 million yen.

-4-

Milbon Co., Ltd. (4919) Consolidated Financial Statements for Third Quarter Ended September 20, 2011

3.

Quarterly Financial Statements(1) Third Quarter Balance Sheet(Unit: thousand yen)
Condensed consolidated balance
End of the 3rd quarter
sheet for previous consolidated
consolidated fiscal period underfiscal year
review (September 20, 2011)(December 20, 2010)

AssetsCurrent assets
Cash and bank deposits
Trade notes and accounts receivable
Goods and products
Work in progress
Raw materials and inventory goods
OthersAllowance for doubtful accounts
Total current assets
Fixed assets
Property and equipment
Buildings and other structures (net amount)
Machinery, equipment and vehicles fortransportation (net amount)
Land
Construction in progress
Others (net amount)
Total tangible fixed assets
Intangible fixed assets
Investments and other assets
Investment in securities
OthersAllowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets
Liabilities
Current Liabilities
Accounts payable
Accrued expenses payable
Corporate taxes payable
Reserve for returned goods
Reserve for bonuses
OthersTotal current liabilities
Fixed Liabilities
Allowance for retirement benefits for employees
Reserve for loss on guarantees
OthersTotal fixed liabilities
Total liabilities-5-

3,529,673
2,690,205
1,961,991
20,609593,452
406,771-10,530
9,192,172

2,673,044
2,857,374
1,638,450
20,370563,184
293,220-9,9638,035,681

3,945,215
952,918

4,210,785
1,074,533

4,763,766
9,619
232,186
9,903,705
506,057

4,763,766
3,634
248,769
10,301,488
451,968

1,076,078
945,522-36,803
1,984,796
12,394,560
21,586,732

1,180,555
911,578-37,730
2,054,403
12,807,860
20,843,541

571,500
946,562
556,494
41,824
280,085456,6212,853,090

467,309
1,284,549
635,475
19,07565,453
253,5092,725,372

8,110
37,200376,026
421,337
3,274,427

1,138
38,400379,135
418,673
3,144,046

Milbon Co., Ltd. (4919) Consolidated Financial Statements for Third Quarter Ended September 20, 2011
(Unit: thousand yen)
Condensed consolidated balance
End of the 3rd quarter
sheet for previous consolidated
consolidated fiscal period underfiscal year
review (September 20, 2011)(December 20, 2010)
Net Assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Valuation and translation adjustments
Net unrealized gains on other securities
Foreign currency translation adjustments
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets-6-

2,000,000
199,120
16,422,234-48,095
18,573,259

2,000,000
199,120
15,779,971-38,254
17,940,836-157,365-103,588-260,953
18,312,305
21,586,732-141,280-100,061-241,341
17,699,495
20,843,541

Milbon Co., Ltd. (4919) Consolidated Financial Statements for Third Quarter Ended September 20, 2011

(2) Third Quarter Consolidated Statement of Earnings[3rd quarter consolidated cumulative fiscal period]

Sales
Cost of sales
Total sales revenues
Marketing and Administrative Expenses
Operating income
Non-operating Income
Interest income
Dividends income
Gain on sale of investment securities
Rent from company housing
Gain on surrender of insurance
OthersTotal non-operating income
Non-operating Expenses
Sales discount
OthersTotal non-operating expenses
Ordinary income
Extraordinary Profit
Gain on disposal of fixed assets
Gain on sale of investment securities
Release of allowance for doubtful accounts
Reversal of reserve for loss on guarantees
Total extraordinary profits
Extraordinary Loss
Loss on disposal of fixed assets
Loss on retirement of fixed assets
Loss on revaluation of investments in securities
Value of impact associated with the application of the“Accounting Standard for Asset Retirement Obligations”
Total extraordinary losses
Quarterly net income before income taxes and minority
interests
Income taxes-Current
Income taxes-Deferred
Total corporate and other taxes
Quarterly net income before minority interests
Quarterly net income

Previous 3rd quarter
consolidated cumulative fiscal
period(December 21, 2009 –September 20, 2010)
14,345,031
4,803,155
9,541,875
6,771,603
2,770,272(Unit: thousand yen)
3rd quarter consolidated
cumulative fiscal period underreview(December 21, 2010 –September 20, 2011)
14,900,317
4,920,050
9,980,267
7,230,861
2,749,405

1,041
21,6691,287
30,992
26,57915,00996,580846
23,88938,9097,813
7,564
79,024249,376
15,780265,156
2,601,696

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

91
4,384
4,475

1,555
610
1,200
3,366

79
16,502
8,272
-

5,129
70,39028,32024,854
2,581,318

103,840
2,461,489

1,072,239-14,762
1,057,476
1,523,841

1,163,098-171,433
991,665
1,469,824
1,469,824-7-

Milbon Co., Ltd. (4919) Consolidated Financial Statements for Third Quarter Ended September 20, 2011

[3rd quarter consolidated fiscal period]

Sales
Cost of sales
Total sales revenues
Marketing and Administrative Expenses
Operating income
Non-operating Income
Interest income
Dividends income
Rent from company housing
OthersTotal non-operating income
Non-operating Expenses
Sales discount
OthersTotal non-operating expenses
Ordinary income
Extraordinary Profit
Gain on disposal of fixed assets
Release of allowance for doubtful accounts
Total extraordinary profits
Extraordinary Loss
Loss on retirement of fixed assets
Loss on revaluation of investments in securities
Total extraordinary losses
Quarterly net income before income taxes and minority
interests
Income taxes-Current
Income taxes-Deferred
Total corporate and other taxes
Quarterly net income before minority interests
Quarterly net income(Unit: thousand yen)Previous 3rd quarter3rd quarter consolidated fiscal
consolidated fiscal period
period under review(June 21, 2010 – September 20, (June 21, 2011 – September 20,
2010)
2011)
4,914,138
5,113,638
1,613,452
1,691,460
3,300,686
3,422,178
2,256,298
2,420,607
1,044,388
1,001,571-8-

369
16,68910,843815
28,718327
19,26013,623
1,971
35,181

88,8872,512
91,399981,706

88,9908,592
97,582
939,170

4
974
978

430
430

3,013
8,272
11,285
971,399

156
3,300
3,456
936,144

440,890-55,312385,578585,821464,766-96,596368,169
567,974
567,974

Milbon Co., Ltd. (4919) Consolidated Financial Statements for Third Quarter Ended September 20, 2011(3) Quarterly Consolidated Statement of Cash Flows
Previous 3rd quarter
consolidated cumulative fiscal
period(December 21, 2009 –September 20, 2010)(Unit: thousand yen)
3rd quarter consolidated
cumulative fiscal period underreview(December 21, 2010 –September 20, 2011)

2,581,318

2,461,489

700,501-29,212202,180-17,735

745,908
589
214,704
22,749--1,200913
32,488-22,711-1,537-1,2878,272-1216,502-

6,921
10,461-24,736490-1,55570,3905,129
28,320369,890-314,970-428,901

167,182-355,172
104,661-202,832
2,892,866
22,982-194,441-1,162,144
1,559,263-103,530
3,352,805
24,963-29,596-1,237,183
2,110,990

2,400-582,608
3,846-167,256-5,49017,393-1,093-64,963
42,020-3,974116,422-2,193-645,496

9,208-267,166-182,102-3,87014,725-1,211-15,618
19,271-1,911
12,081-3,801-420,394

143-684,973-684,829-15-10,370-822,210-832,580-2,672228,921
1,666,170
1,895,092

855,341
2,670,550
3,525,892

Cash flows from operating activities
Quarterly net income before income taxes and minority
interests
Depreciation and amortization expense
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in the provision for bonuses
Increase (decrease) in provision for returned productadjustment
Change (decrease) in value of the reserve for loss on
guarantees
Change in allowance for retirement benefits for employees
Decrease (increase) in the prepaid pension cost
Interest and dividends received
Foreign exchange loss (gain)
Loss (gain) on sale of investment securities
Loss (gain) on valuation of investment securities
Profit or loss on disposal of fixed assets
Loss on retirement of fixed assets
Value of impact associated with the application of the“Accounting Standard for Asset Retirement Obligations”
Decrease (increase) in accounts receivable – trade
Decrease (increase) in inventories
Increase (decrease) in accounts payable related to
procurement transactions
OthersSubtotalInterest and dividends received
Payment of retirement benefits for directors
Payment of corporate and other taxes
Cash flows from operating activities
Cash flows from investing activities
Sale of investment securities
Purchase of property and equipment
Proceeds from sales of property, plant and equipment
Payment due to the acquisition of intangible fixed assets
Payment due to loans
Collection of the loan payment
Expenditure due to deposit of fixed term deposits
Payment due to the placement of guarantee money
Collection of guarantee money
Payment into insurance reserve fund
Income due to cancellation of insurance reserve fund
OthersCash flows from investing activities
Cash flows from financing activities
Net decrease (increase) in treasury stocks
Payment of dividends
Cash flows from financing activities
Effect of exchange rate fluctuations on cash and cash
equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of current quarter-9-

Milbon Co., Ltd. (4919) Consolidated Financial Statements for Third Quarter Ended September 20, 2011

(4) Notes concerning the assumption of the business as a going concern
None(5) Segment information
3rd quarter consolidated cumulative fiscal period under review (December 21, 2010 - September 20, 2011)
No statement is included because the Milbon Group has only the one segment of the manufacture and sale of hairproducts.
(Additional information)
The company has applied the “Revised Accounting Standard for Disclosures about Segments of an Enterprise andRelated information” (ASBJ Statement No.17; March 27, 2009) and the “Guidance on Revised Accounting Standard
for Disclosures about Segments of an Enterprise and Related information” (ASBJ Guidance No.20; March 21, 2008)
since the 1st quarter consolidated fiscal period.

(6) Notes in cases of extreme variation in the amount of shareholders’ equityNone-10-