Milbon Co., Ltd. · TSE:4919
Milbon — Q2 FY2025 Earnings Presentation
65 slides from Milbon's earnings presentation, Aug 8, 2025
Slide 1: Financial Results for Q2 of FY2025
Financial Results for Q2 of FY2025 (Ending December 31, 2025) Milbon Co., Ltd. (TSE code: 4919) August 8, 2025 © Milbon Co., Ltd. All rights reserved.
Slide 2: Contents
1. Consolidated Financial Results P2 Financial Results by Region and Revision of Full-Year 2. Earnings Forecast P7 Contents 3. Progress in FY2025 P18 4. Appendix P30 5. Overview of Milbon P47 This document has been translated from the Japanese original for reference purposes only. In the event of an
Slide 3: Key Highlights of Financial Results for the First Half of FY2025
Key Highlights of Financial Results for the First Half of FY2025 FY2025 Although net sales returned to slightly positive growth in the first half, profit declined. 1H Results The overseas business remained generally strong, while domestic sales fell short of the plan. • In the domestic salon market,
Slide 4: Consolidated Statement of Earnings
Consolidated Statement of Earnings Sales increased, but profits declined. Operating income fell short of the plan, mainly due to lower-than- expected domestic sales and inventory losses. Additionally, we recorded a valuation loss of approximately ¥760 million on investment securities, which contribu
Slide 5: Consolidated Operating Income – Factors Behind YoY Changes
Consolidated Operating Income – Factors Behind YoY Changes Net sales returned to slightly positive growth in the first half, but operating profit declined due to lower gross profit resulting from inventory losses and foreign exchange effects, as well as higher SG&A expenses. Profitability improvemen
Slide 6: Consolidated Operating Income – Factors Behind Difference vs. Target
Consolidated Operating Income – Factors Behind Difference vs. Target Gross profit fell short of the plan, mainly due to lower sales and inventory losses. Although we implemented additional measures to reduce SG&A expenses, they were not sufficient to fully offset the impact, and operating profit als
Slide 7: Contents
1. Consolidated Financial Results P2 Financial Results by Region and Revision of Full-Year 2. Earnings Forecast P7 Contents 3. Progress in FY2025 P18 4. Appendix P30 5. Overview of Milbon P47 © Milbon Co., Ltd. All rights reserved. 7
Slide 8: Net Sales and Operating Income by Region
Net Sales and Operating Income by Region Domestic sales increased, but operating income declined due to lower gross profit from inventory losses and higher SG&A expenses. Overseas, particularly in South Korea, results were impacted by yen appreciation, although local currency sales remained strong.
Slide 9: Financial Results by Region: Japan
Financial Results by Region: Japan Sales returned to slightly positive growth in the first half, but profit declined due to lower gross profit from inventory losses and higher SG&A expenses. YoY Growth Rate of Sales by Quarterly Net Sales (mil. yen) Quarterly Operating Income (mil. yen) Product Cate
Slide 10: Financial Results by Region: South Korea
Financial Results by Region: South Korea Temporary negative factors, such as political instability in Q1, have been resolved. While results were affected by yen appreciation and won depreciation, performance in local currency terms has progressed in line with the plan. YoY Growth Rate of Sales by Qu
Slide 11: Financial Results by Region: China
Financial Results by Region: China Despite a sluggish market recovery, our salon support activities, an area of strength, were well received, resulting in net sales and operating income exceeding the plan. YoY Growth Rate of Sales by Quarterly Net Sales (mil. yen) Quarterly Operating Income (mil. ye
Slide 12: Financial Results by Region: United States
Financial Results by Region: United States Amid a challenging salon market, sales grew strongly, driven by the high reputation of our products and collaboration with distributors. Operating loss was almost contained within the planned range, despite up-front investments in marketing, personnel, and
Slide 13: Revision of Full-Year Earnings Forecast
Revision of Full-Year Earnings Forecast Based on our first-half results and the current market environment, we have revised the full-year earnings forecast downward, incorporating all currently foreseeable risks. FY2025 FY2025 Initial Revised Diff. Diff. (%) (Unit: million yen) Target Target Net Sal
Slide 14: Factors Behind the Adjustment to Domestic Sales Targets
Revision of Full-Year Earnings Forecast: Factors Behind the Adjustment to Domestic Sales Targets In addition to falling short of our initial first-half sales target, we have revised our domestic sales forecast for the second half downward, as the impact of our initiatives is expected to take time to
Slide 15: Factors Behind the Adjustment to Consolidated Operating Income
Revision of Full-Year Earnings Forecast: Factors Behind the Adjustment to Consolidated Operating Income We have revised the forecast downward due to lower-than-expected sales and inventory losses. In terms of SG&A expenses, we implement additional cost-reduction measures as shown below. Decrease in
Slide 16: Shareholder Return: Dividend and Share Repurchase
Shareholder Return: Dividend and Share Repurchase In line with our progressive dividend policy, the interim dividend was set at ¥40 as planned, and the year-end forecast of ¥48 remains unchanged. Additionally, a share repurchase of up to ¥2 billion was resolved to improve capital efficiency and enha
Slide 17: Revisions to Capital Allocation Policy Through 2026
Revisions to Capital Allocation Policy Through 2026 ✓ Growth investments, including the planned expansion of the Yumegaoka Factory by 2026, will be mainly funded through interest-bearing debt to enhance capital efficiency. ✓ While shareholder returns were previously limited to dividends, we will con
Slide 18: Contents
1. Consolidated Financial Results P2 Financial Results by Region and Revision of Full-Year 2. Earnings Forecast P7 Contents 3. Progress in FY2025 P18 4. Appendix P30 5. Overview of Milbon P47 © Milbon Co., Ltd. All rights reserved. 18
Slide 19: Our Strategic Direction and Current Challenges
Our Strategic Direction and Current Challenges To become the world’s No.1 professional haircare manufacturer, we’re building stable growth in Japan, aiming for the top spot in Asia, and accelerating expansion in the U.S. and Europe. Overseas business is strong, while premiumization remains a challen
Slide 20: Market Environment in Japan
Market Environment in Japan Household spending on hairdressing services has historically been high, but is now showing a downward trend. Amid rising prices, consumers are becoming more cost-conscious, which may be making it more challenging to implement price increases. Historical Trend of the Beaut
Slide 21: Hair Care Products in Japan
Hair Care Products in Japan Despite a challenging market environment, hair care sales increased by 6.7% year-on-year in the first half. We aim to further grow sales, particularly for Aujua, through educational initiatives targeted at hair salons. Aujua Elujuda FY25H1 Gross Sales in Japan +2.4% YoY F
Slide 22: Hair Coloring Markets in Japan
Hair Coloring Markets in Japan Hair coloring product usage is declining, likely due to reduced beauty spending. We are also seeing an impact from the growing polarization in salon needs for hair coloring. Changes in the External Environment Changes in the Hair Coloring Market Reduced beauty Hair col
Slide 23: Our Approach to Hair Coloring in Japan
Our Approach to Hair Coloring in Japan By developing new, highly differentiated products and enhancing consumer brand recognition—with salon education as a key foundation, we aim to help raise in-salon color menu prices and, consequently, contribute to increased sales and profit for salons. Developm
Slide 24: This Year's Hair Coloring Initiatives in Japan
This Year's Hair Coloring Initiatives in Japan We will launch additional items under our distinctive and successful gray coverage color brand, while also enhancing consumer brand recognition to strengthen our position as a preferred choice. Development of New, Distinctive Products Enhancing Consumer
Slide 25: Cosmetics Products in Japan
Cosmetics Products in Japan We aim to improve sales efficiency by streamlining our lineup and focusing on high-potential products. Key Issues at Present Strengths and Opportunities ✓ The broad cosmetics lineup has led to dispersed ✓ The new product Balance Tuner in the Imprea sales activities. lotio
Slide 26: Overseas Business: South Korea and China
Overseas Business: South Korea and China Recovery has been underway since Q1 in South Korea and China, progressing as planned under favorable conditions. South Korea China Q1 challenges, such as slower salon visits, have been resolved. Since Q1, sales and profit have exceeded the plan. Market Recove
Slide 27: Overseas Business: The U.S. and Europe
Overseas Business: The U.S. and Europe Sales are growing strongly, especially in hair care, driven by product quality and sales execution. We aim to further strengthen our presence in the U.S. and Europe. United States EU Amid a challenging market environment, hair care products tailored Commission-
Slide 28: Outlook for Medium-Term Management Plan (Through 2026)
Outlook for Medium-Term Management Plan (Through 2026) FY2026 plan remain unchanged, despite reflecting a gap from the FY2025 revised target, mainly due to domestic sales and inventory losses. Looking ahead, we will focus on improving profitability and capital efficiency to achieve FY2026 targets, p
Slide 29: Closing Summary
Closing Summary Overseas business is progressing steadily. In Japan, we aim to expand sales and improve profitability as part of our commitment to sustainable global growth. Increase Overseas Sales Expansion and Achieve Stable Growth in Japan Enhance Profitability Core hair care category continues s
Slide 30: Agenda
1. Consolidated Financial Results P2 2. Financial Results by Region and Revision of Full-Year P7 Earnings Forecast 3. Progress in FY2025 P18 4. Appendix P30 Current Status of Expo 2025 Osaka-Kansai P31 Agenda ESG Initiatives P32 Consolidated Operating Income – Factors Behind YoY Changes and Differen
Slide 31: Current Status of Expo 2025 Osaka-Kansai
Current Status of Expo 2025 Osaka-Kansai Our booth at the Osaka Healthcare Pavilion has drawn strong interest, with visitor numbers far exceeding initial projections. We expect meaningful results in both PHR sample collection and the impact on public relations. Our Exhibit at the Osaka Healthcare Pa
Slide 32: ESG Initiatives: Third-Party Evaluation
ESG Initiatives: Third-Party Evaluation Strengthened ESG initiatives and disclosures have led to improved third-party evaluations, with steady growth in inclusion across ESG investment indices. FTSE Score FY2021 FY2022 FY2023 FY2024 FY2025 FTSE スコア 1.1/5.0 1.5/5.0 2.3/5.0 3.5/5.0 3.6/5.0 External As
Slide 33: ESG Initiatives: Integrated Report and Sustainability Report
ESG Initiatives: Integrated Report and Sustainability Report In addition to our annual integrated report, we published our first sustainability report in late April*. We remain committed to advancing ESG initiatives and disclosures to deepen engagement with stakeholders. Published on August 8, 2025
Slide 34: Consolidated Operating Income – Factors Behind YoY Changes (Quarterly Basis)
Consolidated Operating Income – Factors Behind YoY Changes (Quarterly Basis) Net sales increased YoY, but operating profit declined due to lower gross profit from inventory losses and foreign exchange effects, as well as higher SG&A expenses. Increase in (million yen) gross profit Decrease in due to
Slide 35: Consolidated Operating Income – Factors Behind Difference vs. Target (Quarterly Basis)
Consolidated Operating Income – Factors Behind Difference vs. Target (Quarterly Basis) Gross profit fell short of the plan, mainly due to lower sales and inventory losses. Although we took additional steps to reduce SG&A expenses, they did not fully offset the impact, and operating profit also fell
Slide 36: Consolidated Net Sales and Sales Ratio by Product Category
Consolidated Net Sales and Sales Ratio by Product Category FY2024 FY2025 FY2025 Revised 1Q 2Q 3Q 4Q YTD 1Q 2Q 3Q 4Q YTD (Unit: million yen) Target* Net Sales 11,508 13,017 12,467 14,322 51,316 11,180 13,626 24,807 52,300 Hair Care 6,670 8,012 7,560 9,080 31,324 6,938 8,685 15,624 33,280 Hair Colorin
Slide 37: Status of Main Brands – Hair Care Products
Status of Main Brands – Hair Care Products Hair Care – Aujua Hair Care – Global Milbon The number of salons introducing Aujua continued to expand both in Sales growth is being propelled by our strong performance in Japan and South Korea. overseas markets, especially in the United States. FY2024 FY20
Slide 38: Status of Main Brands – Hair Coloring Products
Status of Main Brands – Hair Coloring Products Hair Coloring – Ordeve Addicthy Hair Coloring – Villa Lodola Color The domestic fashion color market remains sluggish amid intensifying Villa Lodola Color is steadily expanding, driven by positive reviews of competition. We aim to regain momentum by sup
Slide 39: Status of Main Brands – Cosmetics
Status of Main Brands – Cosmetics Cosmetics – Imprea Cosmetics – IM Both our mainstay product, Lotion, and the new launch, Balance Tuner, Sales declined due to the slow adoption by salons of the newly have received strong market recognition. added eyebrow mascara items launched in Q1 last year. FY20
Slide 40: Sales Growth and Sales Ratio by Category in Japan and Overseas (Local Currency Basis)
Sales Growth and Sales Ratio by Category in Japan and Overseas (Local Currency Basis) FY2024 FY2025 Japan 1Q 2Q 3Q 4Q YTD 1Q 2Q 3Q 4Q YTD Net Sales +9.3% +5.0% +7.7% +3.0% +6.0% (2.5%) +3.2% +0.6% Hair Care +9.1% +8.9% +13.4% +7.1% +9.4% +6.6% +6.8% +6.7% Hair Coloring +0.8% (0.5%) +1.1% (0.5%) +0.2
Slide 41: Sales Growth and Sales Ratio by Category in Japan and Overseas (Local Currency Basis)
Sales Growth and Sales Ratio by Category in Japan and Overseas (Local Currency Basis) FY2024 FY2025 China 1Q 2Q 3Q 4Q YTD 1Q 2Q 3Q 4Q YTD Net Sales +4.3% (16.5%) +0.0% +2.0% (2.7%) (3.9%) +13.2% +3.6% Hair Care +6.2% (3.3%) +8.3% +3.4% +3.6% (0.6%) +10.8% +4.7% Hair Coloring (0.6%) (33.7%) (9.1%) (3
Slide 42: Progress on milbon:iD and Smart Salon Initiatives
Progress on milbon:iD and Smart Salon Initiatives milbon:iD Although the number of salons decreased due to the exclusion of closed locations following a change in the counting method, user registrations have steadily increased, approaching one million. Starting in June, we connected milbon:iD to the
Slide 43: Status of Inventory
Status of Inventory (million yen) Increase Factor: ・ Meet demand before next year’s price revision Increase due ・ Prepare for new Increase due to to seasonality products preparations for (launch of new the anticipated products) Decrease Factor: demand surge ・ Optimize before the price inventory leve
Slide 44: Status of Capital Expenditures, etc.
Status of Capital Expenditures, etc. FY2025 FY2025 FY2021 FY2022 FY2023 FY2024 (Unit: million yen) 2Q YTD Target Capital Expenditures 4,644 4,097 3,151 2,865 1,224 2,611 Depreciation and 1,777 2,026 2,213 2,288 1,136 2,354 Amortization Amount 1,741 2,074 2,334 2,452 1,289 2,829 R&D exp. % to 4.2 4.6
Slide 45: The Number of Field Person (FP)
The Number of Field Person (FP) The Number of FP by Country FP Recruitment and Training Status in Japan Upper column: Average number of FPs during the period (persons) Lower column: Net sales per FP (million yen) FY2022 FY2023 FY2024 FY2025 As of June 30, 2025 Japan 335.4 350.2 361.4 366.0 10 FPs jo
Slide 46: Forex Assumption and Sensitivities
Forex Assumption and Sensitivities (million yen) Impact on FY2025 Impact on Consolidated Assumption Consolidated Net Sales Operating Income KRW 0.108 yen ±0.001 yen → 51 ±0.001 yen → 38 RMB 20.5 yen ±0.1 yen → 11 ±0.1 yen → 2 USD 145.0 yen ±1 yen → 15 ±1 yen → 4 © Milbon Co., Ltd. All rights reserve
Slide 47: Contents
1. Consolidated Financial Results P2 Financial Results by Region and Revision of Full-Year 2. Earnings Forecast P7 Contents 3. Progress in FY2025 P18 4. Appendix P30 5. Overview of Milbon P47 © Milbon Co., Ltd. All rights reserved. 47
Slide 48: Overview of Milbon
Overview of Milbon Milbon is a cosmetics manufacturer that produces and sells haircare products including treatments and hair coloring products exclusively to hair salons. Cosmetics market Professional hair cosmetics market Domestic market size: Approx. 200 billion yen* Domestic market share Approx.
Slide 49: Overview of Milbon: Business Model
Overview of Milbon: Business Model We have established solid trust with hair salons by offering our products and services that contribute to enhance their sales and profits. The distribution flow of Our sales personnel, Field Person, identifies salon tasks, provides educational support, and products
Slide 50: Overview of Milbon: Three Key Points of Our Business Model
Overview of Milbon: Three Key Points of Our Business Model Consistent focus on hair salons and hair stylists Since our founding in 1960, we have sustained continuous growth by steadfastly narrowing our business focus to hair salons, with the strategy of increasing sales and profits of hair salons at
Slide 51: Overview of Milbon: Our Growth Trajectory
Overview of Milbon: Our Growth Trajectory Steady growth through business expansion in Japan and overseas Net Sales and Operating Income Composition of Sales by (billion yen) Launched “Smart Salons” (billion yen) Country (FY2024) Launched “milbon:iD”, our official online stores Launched “Imprea”, sal
Slide 52: Overview of Milbon: Our Main Products
Overview of Milbon: Our Main Products Haircare and hair coloring products are the mainstay of our sales. In recent years, we have expanded our business to include cosmetics, etc. Composition of Sales by Product Category Cosmetics (only available in Japan) (FY2024) Hair Care Products sold for retail
Slide 53: Overview of Milbon: Domestic Hair Salon Market Conditions
Overview of Milbon: Domestic Hair Salon Market Conditions Hair salons have the potential for further growth despite the medium- to long term decrease in the number of customers due to declining birth rate and aging population. Challenges and Growth of Aging Population with Low Fertility Community Ch
Slide 54: Overview of Milbon: Our Recent Initiatives in Japan, milbon:iD
Overview of Milbon: Our Recent Initiatives in Japan, milbon:iD We launched milbon:iD, an EC platform, in 2020 to support productivity enhancement of hair salons. This platform allows salon customers to purchase retail products online. How milbon:iD Works – Revenue is attributed to salons in the BtoB
Slide 55: Overview of Milbon: Our Recent Initiatives in Japan, Two Major Strategies
Overview of Milbon: Our Recent Initiatives in Japan, Two Major Strategies We aim to maximize the inherent value of hair salons, which enables frequent and extended in- person visits, by enhancing our Smart Salon concept and broadening the range of products available for in-salon purchase. Smart Salo
Slide 56: Overview of Milbon: Status of Overseas Expansion
Overview of Milbon: Status of Overseas Expansion We conduct business across the world, and have recently expanded our international bases for R&D as well as production. Milbon Europe Milbon Korea GmbH Co., Ltd. Milbon Trading(Shanghai) Istanbul Main Branch Co.,Ltd. Milbon Co., Ltd. MILBON USA, INC.
Slide 57: Overview of Milbon: Our Three Major Overseas Countries
Overview of Milbon: Our Three Major Overseas Countries Three major countries, South Korea, China, and the USA account for nearly 80% of overseas sales South Korea China USA Our educational initiatives focused on hair Subsequent to COVID-19, activities for hair We have enjoyed rapid growth triggered
Slide 58: Overview of Milbon: Other Countries and Regions
Overview of Milbon: Other Countries and Regions Our sales are particularly significant in East Asia and ASEAN, and we have recently expanded into Europe. Europe and Middle East East Asia (Taiwan and Hong 12.8% Kong) 35.8% FY2024 Sales in Other Countries and Regions 2.98 billion yen ASEAN 51.4% © Mil
Slide 59: Overview of Milbon: Our Global R&D and Production
Overview of Milbon: Our Global R&D and Production We aim to minimize geopolitical risks and to align ourselves with the diverse values of beauty unique to each locality, by establishing R&D and production systems in each region. R&D－ Production－ Collaboration Among our Four Global R&D Bases Collabor
Slide 60: Overview of Milbon: Shareholder Returns
Overview of Milbon: Shareholder Returns We have set a dividend payout ratio target of 50% and will increase or maintain dividends without reducing them, aiming for higher dividends in line with profit growth. (Yen) FY2025 Target 88 yen © Milbon Co., Ltd. All right reserved. 60
Slide 61: Overview of Milbon: Corporate Governance Structure
Overview of Milbon: Corporate Governance Structure See our Integrated Report for more details ： https://www.milbon.com/en/ir/library/report.html © Milbon Co., Ltd. All right reserved. 61
Slide 62: Overview of Milbon: Compensation for Board Members
Overview of Milbon: Compensation for Board Members Compensation for board directors (excluding external board directors) shall consist of cash and stock- based compensation as an incentive to continuously increase corporate value, in order to encourage each board director to perform their duties wit
Slide 63: Overview of Milbon: Status of Dialogues with Shareholders (FY2024)
Overview of Milbon: Status of Dialogues with Shareholders (FY2024) We held a total of 163 meetings throughout the year, led mainly by the Managing Executive Director in charge of Finance and IR. During interim and year-end results reporting, the President and CEO actively participated in IR meetings
Slide 64: Overview of Milbon: Status of Dialogues with Shareholders (FY2024)
Overview of Milbon: Status of Dialogues with Shareholders (FY2024) In response to the various opinions and requests from institutional investors and other shareholders, we outlined the main examples of changes in our actions and disclosures resulting from these dialogues. ■Incorporation of Feedback
Slide 65: Disclaimer
Disclaimer With respect to the business forecasts included in this document, any statement that is not historical fact is a forward-looking statement based on information available and certain premises that are judged to be rational at the time of the announcement. Please be aware that actual result