Consolidated Financial Results for the Three Months Ended March 31, 2024
[Japanese GAAP]May 14, 2024
Name of registrant:
Milbon Co., Ltd.
Tokyo Stock Exchange, Prime Market
Code No.:4919
URL https://www.milbon.com/en/
Representative:
Hidenori Sakashita, President & CEO
Inquiries:
Masahiro Murai, Managing Executive Director
TEL: +81-3-6478-6301
Scheduled filing date for quarterly report: May 14, 2024
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 (Online streaming 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, 2024 (January 1, 2024 - March 31, 2024)(1) Consolidated operating results
Net sales

Operating income

Three months ended March 31, 2024

Million yen
11,508%
11.3

Million yen
1,337%
11.9

Three months ended March 31, 2023

10,3407.3

1,195(20.1)

Note: Comprehensive income

Three months ended March 31, 2024: 1,244 million yen [18.3%]

Three months ended March 31, 2024

(Percentages show year-on-year changes.)
Profit attributable to ownersof parent%
Million yen%
19.2
973
10.3

Ordinary income
Million yen
1,390
1,167

(28.6)

882(24.4)

Three months ended March 31, 2023: 1,052 million yen [(41.2)%]

Basic earnings per share Diluted earnings per share
Yen
Yen
29.91
-

Three months ended March 31, 2023

27.13

-

(2) Consolidated financial position
Total assets
Million yen
53,183As of March 31, 2024
As of December 31, 2023
(Reference)

EquityNet assets
Million yen
45,61553,391
As of March 31, 2024: 45,615 million yen

Equity ratio%
85.8

45,93286.0

As of December 31, 2023: 45,932 million yen

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

Year ended December 31, 2023-

Year ending December 31, 2024-

Year ending December 31, 2024
(forecast)
Note: Changes to latest dividends forecast: None

Yen
40.00

40.00

End of 3rd quarterEnd of fiscal year
Yen

Total-

Yen
48.00

Yen
88.00

-48.0088.00

3. Consolidated operating results forecasts for the fiscal year ending December 31, 2024 (January 1, 2024 - December 31, 2024)(Percentages show year-on-year changes.)
Net sales
Million yen
Year ending December 31, 2024
50,620Note: 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
6.0
6,600
19.5
6,560
17.4
4,650
16.2
142.92

*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 company (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: None3) Changes in accounting estimates: None

4) 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, 2024
As ofMarch 31, 2024
Three months ended
March 31, 2024

33,117,234 shares
577,107 shares
32,540,127 shares

As ofDecember 31, 2023
As ofDecember 31, 2023
Three months ended
March 31, 2023

33,117,234 shares
577,107 shares
32,525,662 shares*These financial statements are not subject to the review 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 of Operating Results................................................................................................................................... .....

2(2)Explanation of Financial Position........................................................................................................................................

3(3)Explanation of Forward-Looking Statements Including Consolidated Operating Forecasts...............................................

32.Quarterly Consolidated Financial Statements and Main Notes.................................................................................................

4(1)Quarterly Consolidated Balance Sheets...............................................................................................................................

4(2)Quarterly Consolidated Statements of Earnings and Quarterly Consolidated Statements of Comprehensive Income.......

6

Quarterly Consolidated Statements of Earnings
Three months ended March 31, 2023 and 2024.........................................................................................................

6

Quarterly Consolidated Statements of Comprehensive Income
Three months ended March 31, 2023 and 2024.........................................................................................................

7(3))Notes Regarding Quarterly Consolidated Financial Statements.........................................................................................

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

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

8(Segment Information, etc.).................................................................................................. .............................................

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

8-3-

1.

Qualitative Information on Consolidated Results for the Current PeriodExplanation of Operating Results(1)

During the first quarter of this consolidated fiscal year, the Japanese economy has seen a modest recovery, backed by anincrease in capital expenditure, employment and income, despite some signs of weaknesses due to the impact of rising prices.
On the other hand, the outlook remains uncertain due to the prolonged situation in Ukraine, the impact of tensions in the Middle
East affecting energy prices, and further concerns about price increases due to the depreciation of the yen.
In light of this situation, the third year of our Medium-Term Management Plan (2022-2026), Fiscal Year 2024, will see a fullscale promotion of the "Smart Salon" proposal, which expanded to 23 salons in 2023, aiming for 100 salons by the end of 2024.
Additionally, we will implement measures such as proposing a unique salon-exclusive total color service for both hair andeyebrow and proposing a high-value color service for adults featuring our organic brand, Villa Lodola.
Consolidated net sales for the first quarter amounted to 11,508 million yen (an 11.3% increase year-on-year). The main
factors behind this growth in Japan were the continued strong sales of the premium haircare brand Aujua, and new products ofthe cosmetics brand "IM" achieving sales that exceeded the fiscal year plan as of the end of the first quarter, driving growth.
Overseas, strengthening activities in the haircare and perm market in South Korea contributed to an increase in sales,achieving double-digit growth. In terms of profit, an increase in sales and control of SG&A expenses led to a reduction in theSG&A-to-sales ratio. As a result, operating income increased 11.9% to 1,337 million yen, ordinary income increased 19.2% to1,390 million yen, and profit attributable to owners of parent increased 10.3% to 973 million yen.
Net sales by item and net sales by domestic and foreign country are as follows.
[Breakdown of consolidated net sales by product category](Unit: million yen)
Product category

Three months ended March 31, Three months ended March 31,2023
2024
AmountRatio (%)

AmountRatio (%)

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

Haircare products

5,969

57.7

6,670

58.0

700

11.7

Hair coloring products

3,922

38.0

4,044

35.1

122

3.1

Permanent wave products

3012.9350

3.1

49

16.6

Cosmetic products

126

1.2

369

3.2

242

191.1

Other

200.2

73

0.6

52

255.3

10,340100.0

11,508

100.0

1,167

11.3

Total

[Breakdown of net sales into domestic and overseas sales](Unit: million yen)Three months ended March 31,2023
AmountThree months ended March 31,
2024

Ratio (%)

AmountRatio (%)

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

Domestic sales

7,659

74.1

8,371

72.7

712

9.3

Overseas sales

2,681

25.9

3,136

27.3

455

17.0

Total

10,340100.0

11,508100.01,167

11.3-4-(2)Explanation of Financial Position
Total assets at the end of the first quarter of the current fiscal year decreased by 208 million yen from the end of the previous
fiscal year to 53,183 million yen.
Current assets decreased by 290 million yen from the end of the previous fiscal year to 25,887 million yen. The main factors
for the change were decreases of 341 million yen in Cash and deposits and 806 million yen in Notes and accounts receivable trade, and increases of 287 million yen in Merchandise and finished goods and 268 million yen in Raw materials and supplies.
Non-current assets increased by 82 million yen from the end of the previous fiscal year to 27,295 million yen.
Current liabilities increased by 102 million yen from the end of the previous fiscal year to 6,670 million yen. The main factors
for the change were a 964 million yen decrease in Accounts payable - other and a 582 million yen increase in Accounts payable- trade.
Non-current liabilities increased by 6 million yen from the end of the previous fiscal year to 897 million yen.
Net assets decreased by 316 million yen from the end of the previous fiscal year to 45,615 million yen. The main factors forthe change were a 588 million yen decrease in Retained earnings, a 216 million yen decrease in Valuation difference on
available-for-sale securities due to a decrease in unrealized gains on marketable equity securities, and a 506 million yen increasein Foreign currency translation adjustment due to the depreciation of the yen,
As a result, the equity ratio changed from 86.0% at the end of the previous fiscal year to 85.8%. Net assets per share based on
the total number of shares outstanding at the end of the period was 1,401.82 yen, down from 1,411.56 yen at the end of theprevious fiscal year.

(3)

Explanation of Forward-Looking Statements Including Consolidated Operating Forecasts
There is no change from the previous forecast (announced on February 14, 2024) for the full-year performance forecast, as theresults progressed generally as planned in the first quarter of the current fiscal year.

-5-2.

Quarterly Consolidated Financial Statements and Main Notes(1)

Quarterly Consolidated Balance Sheets(Unit: thousand yen)Previous fiscal year
(As of December 31, 2023)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
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-6-Current 1st quarter(As of March 31, 2024)

11,337,201
5,345,669
6,939,156
36,8382,072,829
446,775
26,178,470

10,995,207
4,539,501
7,226,538
69,1552,341,169
716,335
25,887,908

9,260,764
3,314,046
6,461,904
995,352
967,392
20,999,461
1,930,204

9,267,018
3,400,498
6,462,572
1,186,354
944,152
21,260,595
1,890,090

1,312,251
1,120
511,056
909,850
1,595,544(46,087)
4,283,736
27,213,401
53,391,872

999,935
1,030
508,388925,883
1,717,451(7,690)4,144,999
27,295,686
53,183,595

931,247
3,665,522
410,988581,530
978,650
6,567,940

1,513,989
2,700,730
434,005
527,481
1,494,281
6,670,489

14,620277
734,815
141,919
891,633
7,459,574

14,691
287
736,321
146,484
897,785
7,568,275

(Unit: thousand yen)Previous fiscal year
(As of December 31, 2023)
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
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total liabilities and net assets-7-Current 1st quarter(As of March 31, 2024)

2,000,000
306,957
43,079,323(1,982,161)
43,404,119

2,000,000
306,957
42,490,832(1,982,161)
42,815,628(106,728)
2,373,812
261,0942,528,178
45,932,297
53,391,872(323,475)
2,880,128
243,038
2,799,690
45,615,319
53,183,595

(2) Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Earnings
Three Months Ended March 31, 2023 and 2024

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
Share of loss of entities accounted for using equity
methodForeign exchange losses
Other
Total non-operating expenses
Ordinary 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(Unit: thousand yen)Three months ended March 31, Three months ended March 31,2023
2024(January 1, 2023
(January 1, 2024
- March 31, 2023)- March 31, 2024)
10,340,911
11,508,323
3,590,354
4,261,765
6,750,556
7,246,558
5,555,345
5,909,248
1,195,211
1,337,310

-8-

3,380
8,687
455
1,829
8,648
23,001

4,748
8,639
39,040415
3,539
56,383

18,2652,934

31,4981,260
51,024
1,167,188

25
2,959
1,390,734

1,504
1,504
1,165,683
242,352
41,017283,369882,314
882,31400
1,390,734
329,607
87,690417,298
973,435
973,435

Quarterly Consolidated Statements of Comprehensive Income
Three Months Ended March 31, 2023 and 2024

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
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(Unit: thousand yen)Three months ended March 31, Three months ended March 31,2023
2024(January 1, 2023
(January 1, 2024
- March 31, 2023)- March 31, 2024)
882,314
973,435-9-104,11357,626
7,960
169,700
1,052,014(216,747)
506,316(18,056)
271,512
1,244,947

1,052,014

1,244,947--

(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.)(Segment information)
This information is omitted since the Group has a single segment of manufacture and sales of cosmetic products.
(Significant subsequent events)(Disposal of treasury stock as restricted stock compensation)
On April 12, 2024, 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

May 10, 2024

(2) Class and number of shares subject to disposal(3) Disposal price

22,141 shares of common stock of the Company
3,061 yen per share(4) Total value of disposal(5) Allottees and number of shares to be allotted

67,773,601 yen
7 Board Directors (excluding Outside Board Directors)
16,300 shares
6 Executive Officers
5,841 shares

2.

Purpose and Reasons for Treasury Stock Disposal

The Company has resolved to dispose of treasury stock in order to grant restricted stock to Board Directors (excludingOutside Board Directors) and Executive Officers with the aim of providing incentives to continuously improve the corporate
value of the Company 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.

- 10 -