Milbon Co., Ltd. FY2018 Second Quarter (January 1, 2018 – June 30, 2018) Financial Results Presentation Materials July 25, 2018 Find Your Beauty  M  I  L  B  O  N Copyright © 2018 Milbon. All rights reserved.
P3 Consolidated Operating Results P4 Consolidated Sales by Product Category
Consolidated Statement of Earnings
Consolidated Trends in Capital Expenditures and R&D Expenses
Trends in Market Related Data, Trends in FPs P13 Outlook of Milbon Group P14 Outlook of Overseas Subsidiaries P16 Progress in FY2018 (59th Term)
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1 Starting in the previous fiscal year, the Company changed its fiscal year end from December 20 to December 31. Additionally, the Company’s consolidated subsidiaries changed their fiscal year end from September 30 to December 31. While the second quarter of the fiscal year under review covers the six month period from January 1, 2018 to June 30, 2018, the second quarter of the previous fiscal year covered the six month period from December 21, 2016 to June 20, 2017 (for consolidated subsidiaries, the period of October 1, 2016 to March 31, 2017).

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Copyright © 2018 Milbon. All rights reserved.
Sales grew steadily both in Japan and overseas
*) See page 3 for the corresponding periods. Find Your Beauty  M  I  L  B  O  I  N Copyright © 2018 Milbon. All rights reserved. 3
Premium brands continued strong performance
(FY2018 6 months)
(Unit: million yen)
•  Sales have been steady for the premium brands Aujua and “milbon.” • The upgrade of the full Aujua line was completed with the scalp care series in May. This upgrade invigorated activities aimed at client salons and enhanced scalp care proposals, which had faced issues, resulting in significantly increased sales. *) See page 3 for the corresponding periods. Find Your Beauty  M  I  L  B  O  I  N Copyright © 2018 Milbon. All rights reserved.

Upgraded scalp care series launched in May is also well received

Brand concept
A hair care brand that nurtures the beauty of Japanese women's hair, born from the climate, culture and hair characteristics of Japan
Product range
A wide-ranging line-up that suits the hair texture of individual customers • 4 series Aging care series Hair care series Scalp care series Climatic care series •12 lines •80 items 1.000 Hair care that supports beauty, now and into the future, by addressing each individual’s hair and skin concerns and choosing the most appropriate item for that time. This is Aujua. *1) Figures for Japan are the number of registered salons. Figures for overseas are calculated based on shipments over a one-yea Find Your Beauty *2) Figures are on a non-consolidated basis. See page 3 for the corresponding periods. Copyright © 2018 Milbon. All rights reserved. 5

Steady progress in salons, overseas rollout in 11 countries

6,000 5,000 4,000 3,000 2,000 1,000 0
Brand concept
What is “milbon”?
A system hair care brand that cultivates the “unique beauty” of each individual, with 360° shiny hair Countries with Salons USA, Hong Kong, China, Thailand, Taiwan, Turkey, Malaysia, Vietnam, Indonesia, 2016 2017 2018 1,500 We conducted an in-depth analysis of the inner structure of the hair of women from 20 countries around the world, using our proprietary CT 1.000 scanning technology, and discovered a universal form of hair damage . Accordingly, we 500 line  containing developed a hair care ingredients capable of repairing such damaged hair and increasing the density within each strand of hair. "milbon" is a system hair care product for developing shiny, beautiful hair from the core. Singapore and Germany *1) Figures for Japan are the number of registered salons. Figures for overseas are calculated based on shipments over a one-year pe Find Your Beauty . *2) Figures are on a non-consolidated basis. See page 3 for the corresponding periods. Copyright © 2018 Milbon. All rights reserved. 6
With additional color, Addicthy, which was launched last year, drove sales of hair coloring products
(FY2018 6 months)
(Unit: million yen)
• Ordeve Addicthy, launched in February 2017, was well received. We added a new color that eliminates any shades of yellow, broadening the scope of proposals with vibrant shades of colors unique to Addicthy. At Addicthy introduced salons, this additional color has been steadily introduced, and with increasing repeat rates of existing colors, driving sales growth. *) See page 3 for the corresponding periods. Find Your Beauty  M  I  L  B  O  I  N Copyright © 2018 Milbon. All rights reserved. 7
Villa Lodola Color continues to be well-received and to drive brand sales

and concep
red in the soil of Italy, these gifts from nature bring out the authentic beauty of your hair and scalp.
What is Villa Lodola?
Based on the concept of “Beauty, the Organic Way,” Villa Lodola is a true organic brand that thoroughly cares about the natural environment not only for the product itself but also in its container, production phase and promotional tools. All of the products are certified by ICEA, an Italian authority. Villa Lodola supports organic choices, with hair care products nurtured in the soil of Italy, bringing out true beauty. *) Figures are on a non-consolidated basis. See page 3 for the corresponding periods. Find Your Beauty  M. I. L. B. O. N Copyright © 2018 Milbon. All rights reserved. 8

Core Product
Villa Lodola Color
With 92% natural ingredients, the product's formulation utilizes the power of plants. It brings comfort of an organic product across all aspects, including during application, the finish and continued use.
Sales (FY2018 6 months)

FY2015 Debut *) See page 3 for the corresponding periods. Find Your Beauty  M  I  L  B  O  I  N Copyright © 2018 Milbon. All rights reserved. 9
<Consolidated Statement of Earnings> (Unit: million yen) *) See page 3 for the corresponding periods. Find Your Beauty M I L B O N Copyright © 2018 Milbon. All rights reserved. 10

FY2018 CAPEX Main Items (Plan)
. . . . Compounding equipment for plant (4-ton vacuum tank) Relocation and expansion of Fukuoka Branch Relocation and expansion of Okayama Sales Office Renovation of Central Research Institute Find Your Beauty  M  I  L  B  O  N
*1) Calculations are based on values adjusted for 12 months. Find Your Beauty Multi Leb Olin *2) Taiwan, Hong Kong, Vietnam, Malaysia, Turkey, Indonesia, the Philippines, Singapore, Germany and others Copyright © 2018 Milbon. All rights reserved.

Double-digit growth in Japan
(comparison periods differ for overseas subsidiaries due to change to fiscal year end; see next page)
*1) See page 3 for the corresponding periods. n i l l b o n 1) Gee page of for the conesponding penods.
*2) Taiwan, Hong Kong, Vietnam, Malaysia, Turkey, Indonesia, the Philippines, Singapore, Germany and others Copyright © 2018 Milbon. All rights reserved. 13
◆   For the outlook of overseas subsidiaries, comments are based on year-on-year comparisons for the period of January through June (6 months), with figures in local currencies.

USA (MILBON USA, Inc.)
The direct sales category is performing well as our sales strategy of targeting 25 high-end Manhattan salons succeeded. In the distributor category as well, efforts to strengthen relationships with distributors are beginning to show results. On the product front, “milbon” is growing significantly as a result of focused activities and a positive reception for proposals suited to each season. In the second half, we plan to introduce the fashion color Ordeve Addicthy and gray-hair coloring product Ordeve beauté for the Asian black hair market, and market expansion is anticipated. This introduction will precede the launch of hair coloring products for European and US markets in 2019. Find Your Beauty M I L B O I N

CHINA (Milbon Trading (Shanghai) Co., Ltd.)
The direct sales and distributor areas both grew substantially, increasing by 30% year on year. By product, the fashion color Ordeve is progressing steadily, partly due to the results of holding seminars for color specialists in each area. In hair care products, we have begun to generate reliable repeats for “milbon” by focusing educational activities on 40 salons and launching the styling series Creative Style.
KOREA (Milbon Korea Co., Ltd.)
Milbon distributors are being affected by the continuous entry into the market of low-priced hair coloring products from competitors, and we are struggling somewhat. We are competing on our superiority with respect to quality and education. Still, winning customers back is expected to take some time. In hair care products, the upgrade of Aujua was completed for the hair care series in April and is scheduled for the scalp care series in September. The Nigelle jelly series launched in May has also been well received in the market. With regard to perms, Neo Liscio, which is highly regarded in Japan, is scheduled for introduction in August, and strong performance is expected going forward.
THAILAND (Milbon (Thailand) Co., Ltd.)
Although sales fell significantly year on year in the first quarter of FY2018 owing to the impact of a large order at the end of the previous fiscal year as a result of a narrowing of our focus to a single distributor, performance is beginning to recover steadily due to the introduction of the new “milbon” line and continued implementation of perm workshops. One factor in the recovery is that distributors have become able to confidently conduct Milbon product seminars, thanks to a stronger collaborative structure that includes training conducted in Japan for educators who work at the distributors. Find Your Beauty  M  I  L  B  O  In Copyright © 2018 Milbon. All rights reserved. Milbon Group
Ryuji Sato, President and CEO
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Copyright © 2018 Milbon. All rights reserved.
FY2018 Domestic Environment (1) ■ Growth factors based on current situation (1)  Product capabilities <Hair care products> Aujua “milbon” Elujuda, Jemile Fran <Hair coloring products> Ordeve Addicthy <Permanent products> Neo Liscio (2)  Salon market •   Leading salons: Grew as Aujua contributed to higher productivity • Young salons: New salons acquired through Addicthy and “milbon” (3)  Collaboration with distributors • Project to create successful salons, etc.
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FY2018 Overseas Markets (1) ■ East Asia ◆ Continued growth in Chinese market [Market changes] Change in awareness at leading salons and young salons Awareness regarding service and customer contact (1) Awareness regarding human resources development efforts (2) ◆ Korean Market is recovering steadily from a temporary drop Southeast Asia ◆ Malaysia Plan to convert to local subsidiary in 2019 Established new representative office in Singapore in March 2018 ◆ Vietnam Plan to convert to local subsidiary during the year
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Copyright © 2018 Milbon. All rights reserved. ◆ Designer education event aimed at Japan and rest of Asia DA Inspire*） Area competitions held in FY2017 8 areas in Japan (Sapporo, Sendai, Tokyo, Kanazawa, Nagoya, Osaka, Hiroshima, Fukuoka) 3 areas overseas (Malaysia, Taiwan, Korea) •
June 19: DA Grand Prix Finals
*DA of the Year selected from Grand Prix winners in each DA area • Evening of June 19: Milbon Designers Award *Award ceremony for DA of the Year Photo Revolution of the Year awarded at same time after selection by screening committee DA scheduled to be held in Shanghai starting in FY2018, expanding to 4 areas overseas *) DA (Designer's Ability) Inspire is an educational event aimed at allowing hair designers to expand their potential by reflecting on their own sensitivity. Copyright © 2018 Milbon. All rights reserved. Find Your Beauty Mulle B
FY2018 Overseas Markets (2)
■ North America
◆ “milbon”: Introduction in high-end Manhattan salons begins ◆ Development of hair coloring products for European and US markets: steady progress ◆ Ordeve Addicthy, Ordeve beauté: Launch scheduled for Asian black hair market at the end of 2018, prior to launch of hair coloring products for European and US markets
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FY2018 Cosmetic Products Business Progress Sales – Education System
[Toward establishment of education system]
◆  21 FCEs (Field Cosmetics Educators) selected • Plan to assign 7 units, each consisting of 3 FCEs for one branch ◆  Start of training Six months, starting in October 2018 •   FCE (Field Cosmetics Educator) 3 or 4 courses, starting in 2018 •   FS (Field Sales) FE (Field Educator) . Advance launch scheduled for spring 2019 ▼FP (Fieldperson) Triangular structure
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◆ The consolidated operating forecasts have been revised upward, taking into consideration the first half results and stable growth in the second half.
*Because FY2017 was an irregular accounting period, values are compared with adjusted amounts for a 12-month period calculated for comparison. Find Your Beauty M I L B O N Copyright © 2018 Milbon. All rights reserved. Statements concerning the future such as the earnings forecasts given in this document are based on information currently in the possession of the Company and on assumptions that the Company considers reasonable.