Consolidated Financial Results for the Three Months Ended March 31, 2022
[Japanese GAAP]May 13, 2022
Name of registrant:
Milbon Co., Ltd.
Tokyo Stock Exchange, Prime Market
Code No.:4919
URL https://www.milbon.com/en/
Representative:
Ryuji Sato, Representative Director, President & CEO
Inquiries:
Masahiro Murai, Managing Executive Director
TEL: +81-3-3517-3915
Scheduled filing date for quarterly report: May 13, 2022
Scheduled starting date of dividend payments: Preparation of supplementary materials on the quarterly results: Yes
Holding of an explanatory meeting on the quarterly results: Yes (Telephone briefing for institutional investors and analysts)(Amounts of less than one million yen have been omitted.)

1. Consolidated financial results for the three months ended March 31, 2022 (January 1, 2022 - March 31, 2022)(1) Consolidated operating results
Net sales

Operating income

Three months ended March 31, 2022

Million yen
9,635%-Million yen
1,496%-

Million yen
1,633

Three months ended March 31, 2021

8,989

14.9

1,633

58.4

1,502

Note: Comprehensive income(Percentages show year-on-year changes.)Profit attributable to ownersof parent%
Million yen%
8.7
1,166
6.9

Ordinary income

79.8

1,091

81.4

Three months ended March 31, 2022: 1,788 million yen [30.5%] Three months ended March 31, 2021: 1,370 million yen [-%]

Three months ended March 31, 2022

Basic earnings per share
Yen
35.89

Three months ended March 31, 2021

33.57

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 hasdetermined 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 first quarter would increase 9.1% and operating income would increase 1.4%. Please refer to theFinancial Results Presentation Materials for details.

(2) Consolidated financial position
Total assets
Million yen
47,321

As of March 31, 2022
As of December 31, 2021
(Reference)

EquityNet assets
Million yen
40,75048,238
As of March 31, 2022: 40,750 million yen

Equity ratio%
86.1

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

Year ended December 31, 2021-

Year ended December 31, 2022

-Year ended December 31, 2022
(forecast)
Note: Changes to latest dividends forecast: None

End of 3rd quarterYen
30.00

34.00

End of fiscal year
Yen

Total-Yen
38.00

Yen
68.00

-46.0080.00

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 hasdetermined 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 thefigures 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): NoneExclude: 0 companies (Company name:New: 0 companies (Company name: ))(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: Yes
3) 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 ofMarch 31, 2022
As ofMarch 31, 2022
Three months ended
March 31, 202233,117,234 shares
606,184 shares
32,511,104 shares

As ofDecember 31, 2021
As ofDecember 31, 2021
Three months ended
March 31, 2021

33,117,234 shares
606,080 shares
32,502,307 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 factors.

○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
Three months ended March 31, 2021 and 2022 ......................................................................................................

6

Quarterly Consolidated Statements of Comprehensive Income(3)

Three months ended March 31, 2021 and 2022 ......................................................................................................

7Notes regarding quarterly consolidated financial statements ........................................................................................

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

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

8(Changes in accounting policies) ...................................................................................................................................

8(Segment information, etc.) ...........................................................................................................................................

8(Significant subsequent events) .....................................................................................................................................

8- 1 -1. Qualitative Information on Consolidated Results for the Current Period(1) Explanation on operating results
In the first quarter of the fiscal year, the Japanese economy remained in a severe situation as the previous recovery phase stagnated
due to the spread of a new variant of COVID-19 from January onwards. Looking ahead, there are many risks and uncertainties,
such as soaring raw material and energy prices, and Russia's invasion of Ukraine.
In the domestic market, the spread of COVID-19 in regional cities led to a decrease in store visits, which had an impact,
although there were signs of a recovery in demand due to the resumption of events. Although there was no significant negative
impact in urban areas, sales grew moderately compared to the previous fiscal year, when consumption for beauty was strong.
In the overseas markets, China continued to face a difficult situation, with sales declining on a local currency basis due tothe impact of the zero-COVID policy lockdown. In other major countries such as the U.S. and South Korea, both hair careproducts and hair coloring products performed well.
As a result of the above, consolidated net sales for the first quarter of the current fiscal year were 9,635 million yen,operating income was 1,496 million yen, ordinary income was 1,633 million yen (up 8.7% year on year), and profit attributableto owners of parent was 1,166 million yen (up 6.9% 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 first quarter would increase
9.1% and operating income would increase 1.4%. 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

Three months ended March 31, Three months ended March 31,2021
2022
AmountRatio (%)

AmountRatio (%)

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

Hair care products

4,975

55.4

5,333

55.4

-

-

Hair coloring products

3,495

38.9

3,800

39.4

-

-

Permanent wave products318

3.5

314

3.3-

-

Cosmetic products

147

1.6

137

1.4-

-

Other52

0.6

49

0.5-

-

8,989

100.0

9,635

100.0--

Total[Breakdown of net sales into domestic and overseas sales](Unit: Million yen)Three months ended March 31,2021
AmountRatio (%)

Three months ended March 31,2022
AmountRatio (%)

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

Domestic sales

7,182

79.9

7,249

75.2-

-

Overseas sales

1,807

20.1

2,385

24.8-

-

Total

8,989

100.0

9,635

100.0--

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

- 2 -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
Total assets at the end of the first quarter under review decreased 916 million yen from the end of the previous fiscal year, to47,321 million yen.
Current assets decreased by 1,159 million yen from the end of the previous fiscal year to 23,741 million yen. The main
factors for the change were decreases of 2,161 million yen in cash and deposits, and 503 million yen in notes and accounts
receivable-trade, and increases of 1,192 million yen in merchandise and finished goods, and 346 million yen in raw materials
and supplies.
Non-current assets increased by 242 million yen from the end of the previous fiscal year to 23,579 million yen.
Current liabilities decreased by 1,473 million yen from the end of the previous fiscal year to 5,836 million yen. The main
factors for the change were decreases of 1,251 million yen in accounts payable-other and 926 million yen in income taxes
payable, and an increase of 530 million yen in accounts payable-trade.
Non-current liabilities increased by 3 million yen from the end of the previous fiscal year to 734 million yen.
Net assets increased by 552 million yen from the end of the previous fiscal year to 40,750 million yen. This was mainly
due to an increase of 708 million in foreign currency translation adjustments 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 86.1%. Net assets per share basedon the total number of shares issued at the end of the fiscal year were 1,253.42 yen, compared to 1,236.41 yen at the end of theprevious fiscal year.

(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 1st quarter(As of March 31, 2022)

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

11,188,539
4,169,646
200,000
5,729,851
73,347
1,707,694
675,925(3,297)
23,741,708

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

9,033,625
2,885,565
5,002,355
340,092
829,109
18,090,748
1,623,910

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

1,589,658
19,355
438,677
552,823
1,312,996(48,387)3,865,124
23,579,783
47,321,491

936,108
3,495,694
1,401,441511,612
965,353
7,310,210

1,466,223
2,244,037
475,294
452,022
1,199,132
5,836,711

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

8,247
628
609,338
116,416
734,632
6,571,344

(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 adjustmentRemeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets- 5 -Current 1st quarter(As of March 31, 2022)

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

2,000,000
246,299
38,766,019(2,080,982)
38,931,336

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

85,791
1,558,605
174,413
1,818,810
40,750,147
47,321,491

(2) Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Earnings
Three months ended March 31, 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
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 incomeExtraordinary 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(Thousand yen)Three months ended March 31, Three months ended March 31,2021
2022(January 1, 2021
(January 1, 2022
- March 31, 2021)- March 31, 2022)
8,989,268
9,635,091
3,039,184
3,183,636
5,950,084
6,451,455
4,316,199
4,954,643
1,633,884
1,496,812- 6 -3,811
220
46,338328
31,505
11,66893,872

4,048
7,441
98,404448
27,79935,583
173,725

157,513-66,66736,163

1,025
225,205
1,502,551

798
36,961
1,633,575

-

232
448
681

117
117
1,502,434
379,691
31,513
411,204
1,091,229
1,091,229

564
564
1,633,692
396,153
70,765466,918
1,166,773
1,166,773

Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended March 31, 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 ofparent
Comprehensive income attributable to non-controllinginterests(Thousand yen)Three months ended March 31, Three months ended March 31,2021
2022(January 1, 2021
(January 1, 2022
- March 31, 2021)- March 31, 2022)
1,091,229
1,166,773- 7 -(100,931)
75,033
301,346
4,090
279,538
1,370,768(14,470)(68,821)708,068(2,570)622,205
1,788,979

1,370,768

1,788,979--

(3) Notes regarding quarterly consolidated financial statements(Notes regarding going concern assumption)
None(Notes in case of any significant changes in shareholders' equity)
None(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 impactof 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 salesof hair cosmetics(Significant subsequent events)(Disposal of treasury stock as restricted stock compensation)
On April 15 and 22, 2022, the Board of Directors resolved to dispose of treasury stock (the "Disposal of Treasury Stock" or"Disposal") as restricted stock compensation.
1. Overview of the Disposal of Treasury Stock(1) Date of disposal(2) Class and number of shares subject to disposal

May 13, 2022
14,787 shares of common stock of the Company(3) Disposal price(4) Total value of disposal

5,340 yen per share
78,962,580 yen(5) Allottees and number of shares to be allotted

6 Directors (excluding Outside Directors)
10,480 shares
8 Executive Officers
4,307 shares(6) OtherThe Company has submitted a notice of securities inaccordance with the Financial Instruments and Exchange Act
for the disposal of treasury stock.

2. Purpose and Reasons for Treasury Stock Disposal
The Company has resolved to dispose of treasury stock in order to grant restricted stock to Directors (excluding OutsideDirectors) and executive officers with the aim of providing incentives to continuously improve the corporate value of theCompany and further promoting the sharing of value with shareholders.
On February 12, 2020, the Board of Directors resolved to introduce a restricted stock compensation plan.

-8-