Consolidated Financial Results for the Six Months Ended June 30, 2021
[Japanese GAAP]
Name of registrant:
Milbon Co., Ltd.
Code No.:4919
URL http://www.milbon.co.jp
Representative:
Ryuji Sato, President and CEO
Inquiries:
Masahiro Murai, Managing Director
Scheduled filing date for quarterly report: August 11, 2021
Scheduled starting date of dividend payments: August 16, 2021
Preparation of supplementary materials on the quarterly results: Yes
Holding of an explanatory meeting on the quarterly results: Yes (For institutional investors and analysts)

August 6, 2021
Tokyo Stock Exchange, First Section
TEL: +81-3-3517-3915(Amounts of less than one million yen have been omitted.)

1. Consolidated financial results for the six months ended June 30, 2021 (January 1, 2021 - June 30, 2021)(1) Consolidated operating results
Net sales
Six months ended June 30, 2021
Six months ended June 30, 2020
(Note) Comprehensive income

Operating income

Million yen
19,558%
23.3

Million yen
3,659

%
53.2

Million yen
3,355

15,869

(8.0)

2,388

(22.7)

2,102

Six months ended June 30, 2021: 2,875 million yen [458.0%]

Six months ended June 30, 2021

Basic earnings per share
Yen
74.24

Six months ended June 30, 2020

44.57

(Percentages show year-on-year changes.)
Profit attributable to ownersof parent%
Million yen
%
59.5
2,413
66.3

Ordinary income(25.6)

1,451(27.4)

Six months ended June 30, 2020: 515 million yen [(72.9)%]

Diluted earnings per share
Yen-(2) Consolidated financial position
Total assets
Million yen
45,858

As of June 30, 2021
As of December 31, 2020
(Reference)

EquityNet assets
Million yen
38,296

43,075Equity ratio%
83.5

36,308

As of June 30, 2021: 38,296 million yen

84.3

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

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

End of 3rd quarter

Yen

End of fiscal year
Yen

Year ended December 31, 2020

-

27.00

Year ended December 31, 2021

-

30.00

Total

Yen
29.00

-

Year ended December 31, 2021
33.00
(forecast)(Note) Changes to latest dividends forecast: Yes
For details, please refer to "Notice of Revisions to Earnings and Dividend Forecasts and Dividends from Surplus (Interim Dividends)" announced on August 6, 2021.

Yen
56.00

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 sales

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
156.89Million yen
Year ending December 31, 2021
40,600(Note) Changes to latest performance forecast: Yes
For details, please refer to "Notice of Revisions to Earnings and Dividend Forecasts and Dividends from Surplus (Interim Dividends)" announced on August 6, 2021.

*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: None3) 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 ofJune 30, 2021
As ofJune 30, 2021
Six months ended
June 30, 2021

33,117,234 shares
605,747 shares
32,506,423 shares

As ofDecember 31, 2020
As ofDecember 31, 2020
Six months ended
June 30, 2020

33,117,234 shares
614,837 shares
32,556,981 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
Six Months Ended June 30, 2020 and 2021 ..........................................................................................................

6

Quarterly Consolidated Statements of Comprehensive Income
Six Months Ended June 30, 2020 and 2021 ..........................................................................................................

7(3)

Quarterly Consolidated Statements of Cash Flows .....................................................................................................

8(4)

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

9Notes regarding going concern assumption .................................................................................................................

9Notes in case of any significant changes in shareholders’ equity .................................................................................

9

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

9

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

9-1-

1.Qualitative Information on Consolidated Results for the Current Period(1)Explanation on operating results
In the second quarter of the current fiscal year, the Japanese economy continued to face severe conditions as socioeconomic
activities were severely restricted due to the launch of the second and third emergency declarations accompanying the reexpansion of the pandemic COVID-19 viral infectious diseases. Going forward, although economic recovery is expected due tothe popularization of vaccines, we still cannot be optimistic about the impact of the launch of the fourth emergency declaration.
In the beauty salon industry, customers have begun to return to salons despite the impact of COVID-19. However, in someurban beauty salons, customers have not returned enough, and the situation continues to be unpredictable.
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 second quarter of the fiscal year under review, in the domestic market, amidst the COVID-19 crisis, field activities
combining online and brick-and-mortar sales to salons have been highly evaluated. In the hair care products segment, sales ofpremium brands Aujua and Global Milbon were strong, due in part to the introduction of new products. In the hair coloringproducts business, sales of the fashion color Addicthy continue to be steady. In overseas markets, sales in China and South
Korea continued to be steady, and sales in the U.S. also grew significantly due to the lifting of lockdowns and the
popularization of vaccines.
As a result, consolidated net sales increased 23.3% year-on-year to 19,558 million yen, operating income increased 53.2% to
3,659 million yen, ordinary income increased 59.5% to 3,355 million yen, and net income attributable to owners of parent
increased 66.3% to 2,413 million yen.
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

Six months ended June 30,
2020

Six months ended June 30,
2021

AmountAmountRatio (%)

Ratio (%)

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

Hair care products

9,391

59.2

11,288

57.7

1,896

20.2

Hair coloring products

5,594

35.3

7,124

36.4

1,529

27.3

Permanent wave products

660

4.1

740

3.8

79

12.0

Cosmetic products

136

0.9

293

1.5

156

114.6

Other

85

0.5

111

0.6

26

31.3

15,869100.0

19,558

100.0

3,689

23.3

Total

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

Six months ended June 30,
2021

AmountAmountRatio (%)

Ratio (%)

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

Domestic sales

13,37384.3

15,742

80.5

2,368

17.7

Overseas sales

2,495

15.7

3,816

19.5

1,321

52.9

Total

15,869100.0

19,558

100.0

3,689

23.3

-2-

(2)Explanation on financial position① Assets, liabilities and net assets
Total assets at the end of the second quarter under review increased 2,782 million yen from the end of the previous fiscal year,
to 45,858 million yen.
Current assets increased by 894 million yen from the end of the previous fiscal year to 23,017 million yen. The main factors forthe change were decreases of 231 million yen in cash and deposits, and increases of 561 million yen in merchandise and finishedgoods, 194 million yen in raw materials and supplies, and 167 million yen in notes and accounts receivable-trade.
Non-current assets increased by 1,887 million yen from the end of the previous fiscal year to 22,841 million yen. This was mainly
due to an increase of 1,346 million yen in construction in progress, including the partial advance payment for the construction ofa new factory in China and the expansion of a factory in Milbon Thailand.
Current liabilities increased by 735 million yen from the end of the previous fiscal year to 6,836 million yen. The main factors
for the change were increases of 531 million yen in accounts payable-trade and 344 million yen in accounts payable-other.
Non-current liabilities increased by 59 million yen from the end of the previous fiscal year to 725 million yen.
Net assets increased 1,987 million yen from the end of the previous fiscal year to 38,296 million yen. The main factors for thechange were increases respectively in retained earnings of 1,470 million yen and foreign currency translation adjustments of 336
million yen due to the depreciation of the yen.
As a result, the equity ratio changed from 84.3% at the end of the previous fiscal year to 83.5%. Net assets per share based on
the total number of shares issued at the end of the period were 1,177.93 yen, compared to 1,117.10 yen at the end of the previous
fiscal year.
② Cash flows
Cash and cash equivalents (hereinafter called "net cash") at the end of the second quarter of the current fiscal year decreased by
231 million yen from the end of the previous fiscal year to 12,075 million yen.
(Cash flows from operating activities)
Net cash provided by operating activities amounted to 2,589 million yen. This was mainly attributable to quarterly profit before
income taxes of 3,374 million yen, depreciation of 856 million yen, an increase in inventories of 704 million yen, an increase innotes and accounts receivable-trade of 163 million yen, an increase in notes and accounts payable-trade of 515 million yen, andincome taxes paid of 1,049 million yen.
(Cash flows from investing activities)
Net cash used in investing activities amounted to 2,086 million yen. This was mainly due to purchase of property, plant andequipment of 1,635 million yen, purchase of intangible assets of 305 million yen, and payments of loans receivable of 148 million
yen.
(Cash flows from financing activities)
Net cash used in financing activities amounted to 936 million yen. This was mainly due to the cash dividends paid to shareholdersof 935 million yen.

(3)Explanation on forward-looking statements including consolidated operating forecasts
In the consolidated cumulative second quarter under review, both the domestic and overseas markets performed better than
expected despite the impact of COVID-19. Although we cannot predict the status of infections with COVID-19 from the third
quarter onward, we have revised our earnings forecasts and dividend forecasts assuming that regulations will not be strengthenedin the future, such as requests to suspend operations due to the spread of infections. For details, please refer to "Notice ofRevisions to Earnings and Dividend Forecasts and Dividends from Surplus (Interim Dividends)" announced today (August 6,2021).

-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 Second Quarter(As of June 30, 2021)

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

12,113,241
4,367,038
4,553,472
54,092
1,371,135
561,610(3,477)23,017,115

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

6,714,042
1,954,957
4,995,014
1,889,339
697,116
16,250,470
1,514,087

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

2,906,760
95,944
206,456
502,346
1,413,386(48,272)
5,076,622
22,841,180
45,858,295

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

1,320,430
3,075,190
1,183,569
458,747
798,1896,836,128

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

5,216
712
607,832
112,224
725,986
7,562,114

(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 Second Quarter(As of June 30, 2021)

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

2,000,000
246,299
37,113,922(2,078,279)
37,281,942

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

416,775
105,634
484,101
7,726
1,014,238
38,296,180
45,858,295

(2)Quarterly Consolidated Statements of Earnings and Consolidated Statements of Comprehensive Income
Quarterly Consolidated Statements of Earnings
Six Months Ended June 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
Gain on surrender of insurance
Refund of custom duty
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 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

Six months ended
June 30, 2020
(January 1, 2020 June 30, 2020)
15,869,207
5,329,116
10,540,090
8,151,746
2,388,344(Thousand yen)Six months ended
June 30, 2021
(January 1, 2021June 30, 2021
19,558,798
6,650,862
12,907,935
9,248,793
3,659,142

12,28432,338
2,174
6,835
19,74541,941
115,319

12,871
16,94438,501
1,193
5,499
32,01926,787
133,816

283,864

341,758

66,45894,54249,333
1,013
400,669
2,102,994

1,356
437,657
3,355,300-

19,087
19,087

14,353
14,353
2,088,641
597,047
40,470637,518
1,451,123
1,451,123

355
355
3,374,032
1,125,498(164,663)
960,835
2,413,196
2,413,196-6-

Quarterly Consolidated Statements of Comprehensive Income
Six Months Ended June 30, 2020 and 2021

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 of parent
Comprehensive income attributable to non-controllinginterests

Six months ended
June 30, 2020
(January 1, 2020 June 30, 2020)
1,451,123(Thousand yen)Six months ended
June 30, 2021
(January 1, 2021June 30, 2021
2,413,196(615,589)(73,113)(260,566)
13,509(935,759)
515,364

11,378106,841
336,3258,180
462,726
2,875,923

515,364

2,875,923

-

-

-7-

(3)Quarterly Consolidated Statements of Cash FlowsSix months ended
June 30, 2020
(January 1, 2020 June 30, 2020)
Cash flows from operating activities
Profit before income taxes
Depreciation
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Decrease (increase) in net defined benefit asset
Increase (decrease) in net defined benefit liability
Interest and dividend income
Share of (profit) loss of entities accounted for using
equity method
Foreign exchange losses (gains)
Loss (gain) on sales of investment securities
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Other
SubtotalInterest and dividend income received
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Payments of loans receivableCollection of loans receivable
Proceeds from withdrawal of time deposits
Purchase of investment securities
Proceeds from sales of investment securities
Payments for guarantee deposits
Proceeds from collection of guarantee deposits
Other
Cash flows from investing activities
Net cash provided by (used in) financing activities
Net decrease (increase) in treasury shares
Cash dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period-8-(Thousand yen)Six months ended
June 30, 2021
(January 1, 2021June 30, 2021

2,088,641
778,148
1,072
11,783(136,953)
156,126(44,623)

3,374,032
856,853(10,519)
20,45312,805(29,815)

66,45894,542(57,579)
14,353(20,161)(4,586)355(75,300)(163,281)(963,892)(704,825)(39,289)

515,897(789,983)
1,008,963
46,712(832,299)
223,375(333,458)
3,608,293
30,963(1,049,930)
2,589,327(461,742)(187,072)
(60)
1,520
1,200,000(40,268)
48,019(3,776)556,619(1,635,322)(305,389)(148,000)
963(12,150)
11,621(24,380)
21,716
4,052(2,086,889)(1,589,628)(948,843)(2,538,472)(99,977)(1,858,454)
9,376,300
7,517,845(1,130)(935,679)(936,810)
202,553(231,819)
12,307,591
12,075,771

(4)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-9-