Consolidated Financial Results for the Nine Months Ended September 30, 2021
[Japanese GAAP]
November 12, 2021
Name of registrant:
Milbon Co., Ltd.
Tokyo Stock Exchange, First Section
Code No.:4919
URL http://www.milbon.co.jp
Representative:
Ryuji Sato, President and CEO
Inquiries:
Masahiro Murai, Managing Director
TEL: +81-3-3517-3915
Scheduled filing date for quarterly report: November 12, 2021
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 nine months ended September 30, 2021 (January 1, 2021 - September 30, 2021)(1) Consolidated operating results
Net sales

Operating income

Nine months ended September 30, 2021

Million yen
29,718%
17.9

Million yen
5,758%
33.7

Million yen
5,227

Nine months ended September 30, 2020

25,214

(5.4)

4,307

(16.8)

3,842(Note) Comprehensive income(Percentages show year-on-year changes.)
Profit attributable to ownersof parent%
Million yen%
36.1
3,725
36.0

Ordinary income(20.0)

2,740(19.7)

Nine months ended September 30, 2021: 3,828 million yen [133.6%] Nine months ended September 30, 2020: 1,639 million yen [(50.4)%]
Basic earnings per share

Nine months ended September 30, 2021

Yen
114.60Nine months ended September 30, 2020

84.21

Diluted earnings per share
Yen-(2) Consolidated financial position
Total assets
Million yen
44,770

As of September 30, 2021
As of December 31, 2020
(Reference)EquityNet assets
Million yen
38,27343,075
As of September 30, 2021: 38,273 million yen

Equity ratio%
85.5

36,30884.3

As of December 31, 2020: 36,308 million yen

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

Year ended December 31, 2020

-

Yen
27.00

Year ended December 31, 2021

-

30.00

End of 3rd quarterEnd of fiscal year
Yen-

Year ended December 31, 2021
(forecast)(Note) Changes to latest dividends forecast: None

TotalYen
29.00

Yen
56.00

33.00

63.00

3. Consolidated operating forecasts for the fiscal year ending December 31, 2021 (January 1, 2021 - December 31, 2021)(Percentages show year-on-year changes.)
Net salesYear ending December 31, 2021

Million yen
40,600(Note) Changes to latest performance forecast: None

Profit attributable toOperating income
Ordinary income
Basic earnings per shareowners of parent% Million yen% Million yen% Million yen%Yen
13.6
7,800
22.0
7,120
22.9
5,100
21.3
156.89

*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.
: None2) Changes in accounting policies other than those in 1) above: None
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 ofSeptember 30, 2021
As of
September 30, 2021
Nine months ended
September 30, 2021

33,117,234 shares
605,759 shares
32,508,129 shares

As ofDecember 31, 2020
As ofDecember 31, 2020
Nine months ended
September 30, 2020

33,117,234 shares
614,837 shares
32,538,723 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.

Contents of supplementary materials
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
Nine months ended September 30, 2020 and 2021 ...............................................................................................

6

Quarterly Consolidated Statements of Comprehensive Income(3)

Nine months ended September 30, 2020 and 2021 ...............................................................................................

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

8Notes regarding going concern assumption .................................................................................................................

8Notes in case of any significant changes in shareholders’ equity .................................................................................

8

Segment information, etc. ............................................................................................................................................

8Significant subsequent events ......................................................................................................................................

8-1-1.Qualitative Information on Consolidated Results for the Current Period(1)Explanation on operating results
In the third quarter of the current fiscal year, the Japanese economy continued to face severe conditions due to the large
limitations on socioeconomic activities resulting from the announcement of repeated emergency declaration accompanying thespread of COVID-19. Looking ahead, infectious diseases are heading toward a convergence against the backdrop of theprevalence of vaccines, and economic activity is expected to recover. However, the risk of a re-expansion of infectious diseases
remains in the winter, and we cannot be optimistic about the situation.
In the beauty salon industry, despite the impact of COVID-19, customers are returning to the level before the COVID-19 crisisin the salon industry. However, some salons in central metropolitan areas continue to have insufficient customer returns.
Under these circumstances, in Fiscal Year 2021, we are working on "Change the Stage 18 Month Missions!" in order to lead us
to a new stage of growth from Fiscal Year 2022.
In the third quarter of the fiscal year under review, the domestic market continued to receive a strong reputation for field
activities that combine online and brick-and-mortar sales to salons amid COVID-19. In the hair care products segment, sales ofpremium brands Aujua and Global Milbon were strong, partly due to the introduction of new products and the impact ofmilbon:iD, an e-commerce platform that supports beauty salons in the sale of salon haircare products. In the hair coloringproducts category, sales of the fashion color Addicthy continue to be strong. In overseas markets, sales in China and South
Korea continued to be steady, and sales in the U.S. also grew significantly.
As a result of the above, consolidated net sales for the third quarter of the current fiscal year were 29,718 million yen (up17.9% year-on-year), operating income was 5,758 million yen (up 33.7% year-on-year), ordinary income was 5,227 million
yen (up 36.1% year-on-year), and profit attributable to owners of parent was 3,725 million yen (up 36.0% year-on-year).
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)
Nine months ended September 30, 2020

Nine months ended September 30, 2021

Product category
AmountRatio (%)

AmountRatio (%)

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

Hair care products

14,65458.1

17,086

57.5

2,431

16.6

Hair coloring products

9,148

36.3

10,954

36.9

1,806

19.7

Permanent wave products

1,036

4.1

1,077

3.6

40

3.9

Cosmetic products

223

0.9

416

1.4

193

86.3

Other150

0.6

183

0.6

33

22.4

25,214100.029,718

100.0

4,504

17.9

Total

[Breakdown of net sales into domestic and overseas sales](Unit: Million yen)
Nine months ended September 30, 2020

AmountRatio (%)

Nine months ended September 30, 2021

AmountRatio (%)

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

Domestic sales

21,102

83.7

23,904

80.4

2,801

13.3

Overseas sales

4,111

16.3

5,814

19.6

1,703

41.4

Total

25,214100.0

29,718

100.0

4,504

17.9

-2-(2)Explanation on financial position①Assets, liabilities and net assets
Total assets at the end of the third quarter under review increased 1,694 million yen from the end of the previous fiscal year, to44,770 million yen.
Current assets decreased by 28 million yen from the end of the previous fiscal year to 22,093 million yen. The main factors forthe change were increases of 1,084 million yen in merchandise and finished goods and 299 million yen in raw materials andsupplies, and decreases of 940 million yen in cash and deposits and 714 million yen in notes and accounts receivable-trade.
Non-current assets increased by 1,723 million yen from the end of the previous fiscal year to 22,676 million yen. This was mainly
due to an increase of 1,704 million yen in construction in progress, including a partial advance payment for the construction ofa new factory in China and the expansion of a factory in Milbon Thailand, and a decrease of 686 million yen in investment
securities due to the sale of a portion of investment securities held and a decrease in unrealized gains on the market value oflisted shares.
Current liabilities decreased by 331 million yen from the end of the previous fiscal year to 5,768 million yen. The main factors
for the change were increases of 473 million yen in accounts payable-trade and 429 million yen in provision for bonuses, anddecreases of 918 million yen in accounts payable-other and 214 million yen in income taxes payable.
Non-current liabilities increased by 60 million yen from the end of the previous fiscal year to 727 million yen.
Net assets increased by 1,965 million yen from the end of the previous fiscal year to 38,273 million yen. The main factors forthe change were increases of 1,807 million yen in retained earnings and 351 million yen in foreign currency translation
adjustment due to the depreciation of the yen, and a decrease of 306 million yen in valuation difference on available-for-salesecurities due to a decrease in unrealized gains on market value of listed stocks.
As a result, the equity ratio changed from 84.3% at the end of the previous fiscal year to 85.5%. Net assets per share based on
the total number of shares issued at the end of the period were 1,177.24 yen, compared to 1,117.10 yen at the end of the previous
fiscal year.

(3)Explanation on forward-looking statements including consolidated operating forecasts
In terms of the full-year forecast there are no changes to the previous consolidated operating forecasts, which were announcement
on August 6, 2021.
We cannot deny the possibility of unexpected fluctuations due to external factors, including the COVID-19. Therefore, we willpromptly revise our earnings forecasts if significant fluctuations are anticipated.

-3-2.Quarterly Consolidated Financial Statements and Main Notes(1)Quarterly Consolidated Balance Sheets(Thousand yen)Previous fiscal year
(As of December 31, 2020)
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
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 Third Quarter(As of September 30, 2021)

12,345,024
4,199,283
3,991,946
46,317
1,177,090
366,288(3,648)22,122,303

11,404,655
3,484,955
5,076,671
67,766
1,476,120
586,982(3,351)22,093,800

6,792,285
1,943,540
4,995,014
543,159
591,796
14,865,795
1,318,478

6,775,064
1,976,896
4,990,009
2,247,945
700,653
16,690,569
1,504,962

2,935,650
28,906
207,475
395,087
1,260,203(58,381)4,768,942
20,953,217
43,075,520

2,248,813
58,005
206,423
685,842
1,330,263(48,272)
4,481,076
22,676,609
44,770,409

788,9112,730,817
1,104,850
436,811
1,038,850
6,100,241

1,262,788
1,812,182
890,626
866,060
937,169
5,768,827

5,216
2,329
546,954
112,427
666,928
6,767,170

4,989
715
607,936
114,188727,830
6,496,658

(Thousand yen)Previous fiscal year
(As of December 31, 2020)
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 Third Quarter(As of September 30, 2021)

2,000,000
222,490
35,643,295(2,108,947)
35,756,838

2,000,000
246,299
37,450,705(2,078,364)
37,618,640

405,396(1,206)
147,775(454)
551,51136,308,349
43,075,520

98,96044,583499,750
11,817655,111
38,273,751
44,770,409

(2)Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Earnings
Nine Months Ended September 30, 2020 and 2021

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
methodForeign exchange losses
Other
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

Nine months ended
September 30, 2020
(January 1, 2020 September 30, 2020)
25,214,042
8,548,138
16,665,904
12,358,616
4,307,287(Thousand yen)
Nine months ended
September 30, 2021
(January 1, 2021 September 30, 2021)
29,718,991
9,947,677
19,771,313
14,012,600
5,758,713

20,30732,363
3,280
39,67473,509169,135

17,35916,972
13,7282,393
42,53043,181
136,166

462,842534,92187,184131,462

83,0191,223
634,270
3,842,152

1,228
667,6115,227,267

114,578
114,578262
19,087
19,34915,454
15,454
3,941,276
1,314,632(113,562)
1,201,069
2,740,206
2,740,206

388
388
5,246,228
1,706,432(185,528)
1,520,904
3,725,324
3,725,324-6-

Quarterly Consolidated Statements of Comprehensive Income
Nine Months Ended September 30, 2020 and 2021

ProfitOther comprehensive incomeValuation 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 of parent
Comprehensive income attributable to non-controllinginterests

Nine months ended
September 30, 2020
(January 1, 2020 September 30, 2020)
2,740,206(Thousand yen)
Nine months ended
September 30, 2021
(January 1, 2021 September 30, 2021)
3,725,324(791,927)(46,422)(283,071)
20,264(1,101,156)
1,639,050(306,436)
45,790351,974
12,271
103,599
3,828,923

1,639,050

3,828,923---7-

(3)Notes regarding quarterly consolidated financial statements(Notes regarding going concern assumption)
None(Notes in case of any significant changes in shareholders' equity)
None(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-8-