Connsolidated Financial StatementsSs for the Th
hree Month
hs Ended M
March 20, 2012
March
M
30, 2012
Tokyyo Stock Exchangge, First Section

Name of registraant:Milbon Co.,C Ltd.
Code No.:4919
hon.co.jp
URL http://www.milbod CEO
Representative:
Ryuji Saato, President andMasahirro Murai, Managing Director
Officer in chargee:
Scheduled filingg date for quarterlly report: April 27
7, 2012
Scheduled date ffor commencemeent of dividend paayments: Preparation of suupplementary maaterials on the quaarterly results: Yees
Holding of an exxplanatory meetinng on the quarterlly results: No

TEL: +8
81-6-6928-2331(Amounts(of less thhan one million yen have been omitted))1.

Consolidateed financial resultts for the three moonths ended Marcch 20, 2012 (Deccember 21, 2011- March 20, 2012))(1) Financial resultts
Neet sales
Million yeen
4,86604,6332Three months ended
March 20, 2012
Three months ended
March 20, 2011
(Note) Comprehenssive income(Perceentages show yearr on year changes))
Net income%%
Million yen
n%%Operatin
ing income
Million yenn%

Ordinarry income
Million yen
n

4.9
9

8255

6.0
0

761
1

7.11

432
2

21.22

6.3
3

7788

9.6
6

711
1

9.77

356
6

1.88

Three months endeed March 20, 2012: 501 million yen [553.9%]

Three months ended Marchh 20, 2011: 326 million yen [―%]

Diluted net income per sshare
Net income perp shareof common stockYen
Yen
Three months ended
March 20, 2012
Three months ended
March 20, 2011

31.37

-

25.87

-

(2)
( Consolidated finnancial position
Totaal assets
ThreeTmonths endedd
MarchM
20, 2012Year
Y endedDecemberD
20, 2011(Reference)(
Shaareholders’ equity

Nett assets

Equity ratio

Million yen
nMillion yen
n%%22,021

19,092
286.77

222,592

19,059984.44

Three months ended March 20, 2 012: 19,092 million
n yenYear ennded December 20,, 2011: 19,059 milliion yen

2. Payment of Dividends
Annual divideend
End of 1st quarteer

End of 2nd quarrter

End of 3rd quaarterEnd of fiscal year

Y
Yen

Yen
Y

Yen

Yen

Yen

Year
Y endedDecemberD
20, 2011
Year
Y ending
DecemberD
20, 20122
Year
Y ending
DecemberD
20, 20122(forecast)
(

-

Total

30
0.00

-

34.00

64.00

32
2.00

-

32.00

64.00

-

Note: Changes too latest dividendss forecast: None
3. Consolidated Performance Forrecasts for the Yeaar Ending Decem
mber 20, 2012 (Deecember 21, 2011 - December 20, 2012)(“Year eending December 20,, 2012” percentages indicate
iincreases or ddecreases against the previous fiscal year;;“Six moonths ending June 20,, 2012” percentages indicate
iincreases or decreases against thee same period in the previous fiscal year.))

Net sales
Millioon YenSix
S months ending Juune 20, 20121
10,297

5.2

Year
Y ending Decembber 20, 2012

4.6

2
21,470%Note: Changes too latest performannce forecasts: No
one

Operating inncome
Million Yen
%
1,681
(3.8)
3,880

2.3

OrdinaryO
incomeMillion Yen
%
1,542
(5.0)
3,610

1.8

Net incoome
Million Yen
%
914
1.3
2,050

(11.1)Net income per share
Yenn
66.322148.744

4. Others(1) Changes to significant subsidiaries during the quarter under review(changes in specific subsidiaries accompanied by changes in the scope of consolidation): None(2) Application of accounting methods specific to the preparation of quarterly consolidated financial statements methods: No(3) Changes in the accounting policies, changes in accounting estimates and corrections of prior period errors
1) Changes in the accounting policies due to amendment to theaccounting standards, etc.
: None2) Changes in the accounting policies other than those in 1) above : None
3) Changes in accounting estimates: None4) Corrections of prior period errors: None(4) Number of shares outstanding (common shares)
1) Number of shares outstanding at the end of fiscal Three months ended
13,798,848 shares Year ended March
13,798,848 shares
year (including treasury shares)
March 20, 2012
20, 2011
2) Number of treasury shares at the end of fiscal
Three months ended
17,962 shares Year ended March
17,728 shares
year
March 20, 2012
20, 2011
3) Average number of shares during the period
Three months ended
13,781,010 shares Three months ended
13,783,573 shares(cumulative)
March 20, 2012
March 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 performance forecasts and other special instructions
Performance 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 Statements for the Three Months Ended March 20, 2012

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 conditions ............................................................................................ 2(3) Qualitative information on consolidated earnings forecasts ............................................................................................... 3
2. Summary information (Others) .................................................................................................................................................. 3(1) Changes to significant subsidiaries during the period under review................................................................................... 3(2) Application of accounting methods specific to the preparation of quarterly consolidated financial statements ................. 3(3) Changes in the accounting policies, changes in accounting estimates and corrections of prior period .............................. 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 ................................................................................................................. 6
Quarterly Consolidated Statements of Comprehensive Income ......................................................................................... 7(3) Notes regarding the 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 Statements for the Three Months Ended March 20, 20121.

Qualitative information on consolidated results for the current period(1)

Qualitative information on consolidated operating results
During the three month period ended March 20, 2012, there were growing expectations for corporate earnings and thebusiness climate in general to recover in the wake of a weaker yen and rising stock prices. However, the nation’s economy
remained in a state of uncertainty over its future due to soaring crude oil prices and concerns over the stable supply ofelectricity. The climate also remained harsh for the beauty industry.
Under such circumstances, the Milbon Group promoted initiatives in order to realize sustainable growth as well as increased
revenues and increased profits, under the theme of “Nurturing “personal production capabilities” that meet diverse values
and supporting the increase in yearly usage amounts.”
Consolidated sales during the three months period ended March 20, 2012 increased by 4.9% compared to the same period of
the previous year to 4,860 million yen. This was primarily due to the strong sales of DEESSE'S Eljuda, a leave-in
hair-conditioner which was launched in February; the “ORDEVE Professional Hair-color line (with additional colors Pearland White); and “NIGELLE DRESSIA Spray Series,” a hair-styling product launched in March; in addition to the increased
sales of the overseas subsidiaries, which was a product of the proactive educational activities conducted on the beauty salons.
Operating income stood at 825 million yen (an increase of 6.0% compared to the same period of the previous year), which
was primarily due to the improvements in the cost-to-sales ratio and the effects of increased revenues. As a result, ordinary
income also increased by 7.1% compared to the same period of the previous year to 761 million yen. And net income
increased to 432 million yen (a 21.2% increase compared to the same period of the previous year), due to the effects of
having reported a loss on valuation of investments in securities in the previous fiscal year.
Breakdown of sales by product category is shown below:[Breakdown of consolidated sales by product category]Previous Consolidated First Quarter

Current Consolidated First Quarter

Increase (Decrease)

Amount (Million yen)

Ratio (%)

Amount (Million yen)

Ratio (%)

Amount (Million yen)

Hair care products

2,332

50.3

2,421

49.8

88

Hair coloring products

1,843

39.8

2,024

41.6

180

Permanent wave products

403

8.7

365

7.5

(38)

Others

53

1.2

50

1.1

(3)

Total

4,632

100.0

4,860

100.0

228

Product Category(2)

Qualitative information on consolidated financial conditions
Total assets at the end of the three month period ended March 20, 2012 decreased by 571 million yen compared to the end of
the previous consolidated fiscal year to 22,021 million yen.
Current assets decreased by 818 million yen compared to the end of the previous consolidated fiscal year to 9,798 million
yen. This was due mainly to the decreases in cash and bank deposits and in notes and accounts receivable-trade by 702
million yen and 385 million yen, respectively; as well as the increases in merchandise and finished goods and in raw
materials and supplies by 153 million yen and 92 million yen, respectively.
Fixed assets increased by 246 million yen compared to the end of the previous consolidated fiscal year to 12,222 million yen.
This was due mainly to the increase of 128 million yen in construction in progress, including the advance payments on the
new construction of the Kyoto Sales Office and the expansion of the Central Research Institute, in addition to the increase of
88 million yen in investment in securities associated with the rise in the prices of listed stock.
Current liabilities decreased by 614 million yen compared to the end of the previous consolidated fiscal year to 2,713 million
yen. This was due mainly to the decreases in income taxes payable and in accounts payable-other by 673 million yen and 331
million yen, respectively; in addition to the increases in reserve for bonuses and in accounts payable-trade by 199 million yen
and 174 million yen, respectively.
There were no material changes in fixed liabilities from the end of the previous consolidated fiscal year.

-2-

Milbon Co., Ltd. (4919) Consolidated Financial Statements for the Three Months Ended March 20, 2012

Net assets increased by 32 million yen compared to the end of the previous consolidated fiscal year to 19,092 million yen.
This was due mainly to the 57 million yen in net unrealized gains on available-for-sale securities associated with the rise in
the prices of listed stock.
As a result, the company's equity ratio changed from 84.4% at the end of the previous consolidated fiscal year to 86.7%. Net
assets per share based on total outstanding shares as of the end of the accounting period increased from 1,383.02 yen per
share at the end of the previous consolidated fiscal year to 1,385.42 yen per share.
(3)

Qualitative information on consolidated earnings forecasts
In terms of the full-year forecast there are no changes to the previous consolidated performance forecasts, which wereannounced on January 18, 2012.

2.
(1)

Summary information (Others)
Changes to significant subsidiaries during the period under review
None

(2)

Application of accounting methods specific to the preparation of quarterly consolidated financial statements
No(3)

Changes in the accounting policies, changes in accounting estimates and corrections of prior period
None

(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 three month period ended March 20, 2012 the Company has applied the “AccountingStandard 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 Statements for the Three Months Ended March 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 First Quarter(As of March 20, 2012)

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

4,377,522
2,645,915
1,832,858
24,511
618,381
301,931(2,553)
9,798,566

3,858,485

3,782,385

924,432

860,816

4,763,766
12,244
194,473
9,753,401
512,138

4,763,766
140,302
191,471
9,738,741
499,120

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

1,105,749
917,797(38,562)
1,984,985
12,222,846
22,021,413

AssetsCurrent assets
Cash and bank deposits
Notes and accounts receivable-trade
Merchandise and finished goods
Work in process
Raw materials and supplies
OthersAllowance for doubtful accounts
Total current assets
Fixed assets
Property, plant and equipment
Buildings and other structures, net
Machinery, equipment and vehicles fortransportation, net
LandConstruction in progress
Others, net
Total property, plant and equipment
Intangible fixed assets
Investments and other assets
Investment in securities
OthersAllowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total assets-4-

Milbon Co., Ltd. (4919) Consolidated Financial Statements for the Three Months Ended March 20, 2012

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

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

594,286
1,116,616
343,214
12,394
267,635
379,005
2,713,152

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

22,34937,200156,442
215,9922,929,145

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

2,000,000
199,120
17,221,059(49,196)
19,370,982(206,624)(149,402)(141,609)(348,233)
19,059,573
22,592,688(129,312)(278,715)
19,092,267
22,021,413

Liabilities
Current liabilities
Accounts payable-trade
Accounts payable-other
Income taxes payable
Reserve for returned goods
Reserve for bonuses
OthersTotal current liabilities
Fixed liabilities
Reserve for retirement benefits
Reserve for loss on guarantees
OthersTotal fixed liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Net unrealized gains (losses) on available-for-salesecurities
Foreign currency translation adjustments
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-5-

Milbon Co., Ltd. (4919) Consolidated Financial Statements for the Three Months Ended March 20, 2012

(2)

Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Earnings
Quarterly Consolidated Three Month Periods Ended March 20, 2011 and 2012

Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Foreign exchange gains
Rent from company housing
OthersTotal non-operating income
Non-operating expenses
Sales discount
OthersTotal non-operating expenses
Ordinary income
Extraordinary profit
Gain on sale of investment securities
Reversal of allowance for doubtful accounts
Reversal of reserve for loss on guarantees
Total extraordinary profits
Extraordinary loss
Loss on retirement of fixed assets
Loss on valuation of investments in securities
Provision of allowance for doubtful accounts
Effects of application 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-6-

Three Months Ended
March 20, 2011
(December 21, 2010 March 20, 2011)
4,632,671
1,512,091
3,120,579
2,341,812
778,767(Thousand yen)Three Months Ended
March 20, 2012
(December 21, 2011 March 20, 2012)
4,860,866
1,503,463
3,357,403
2,531,642
825,761

271
192
1,149
12,4291,714
15,757

330
192
7,336
14,123
1,799
23,781

82,88385
82,968711,556

87,6185
87,623761,918

837
1,201
900
2,938

-

3,375
65,290-

1,245
11,00028,320-96,986
617,508
344,724(83,864)
260,860
356,648356,648

12,245
749,673
334,157(16,775)
317,381432,292
432,292

Milbon Co., Ltd. (4919) Consolidated Financial Statements for the Three Months Ended March 20, 2012

Quarterly Consolidated Statements of Comprehensive Income
Quarterly Consolidated Three Month Periods Ended March 20, 2011 and 2012

Income before minority interests
Other comprehensive income
Net unrealized gains (losses) on available-for-salesecurities
Foreign currency translation adjustments
Total other comprehensive income
Comprehensive income(Breakdown)Comprehensive income attributable to parent company
shareholders
Comprehensive income attributable to minority interests-7-

Three Months Ended
March 20, 2011
(December 21, 2010 March 20, 2011)
356,648(Thousand yen)Three Months Ended
March 20, 2012
(December 21, 2011 March 20, 2012)
432,292(17,745)

57,221(12,808)(30,554)
326,093

12,296
69,518501,810

326,093501,810--

Milbon Co., Ltd. (4919) Consolidated Financial Statements for the Three Months Ended March 20, 2012(3)

Notes regarding the 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' equityNone-8-