Milbon Co., Ltd. · TSE:4919
Milbon — FY2025 Earnings Presentation
67 slides from Milbon's earnings presentation, Feb 13, 2026
Slide 1: Financial Results for FY2025
Financial Results for FY2025 (Ending December 31, 2025) Milbon Co., Ltd. (TSE code: 4919) February 13, 2026 © Milbon Co., Ltd. All rights reserved.
Slide 2: Contents
1. Consolidated Financial Results P2 2. Financial Results by Region and the Target for FY2026 P8 Contents 3. Initiatives in FY2026 P18 4. Appendix P33 5. Overview of Milbon P48 This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy b
Slide 3: Key Highlights of Financial Results for FY2025
Key Highlights of Financial Results for FY2025 Net sales increased while profits declined. Although we revised the initial target downward in August FY2025 last year mainly due to domestic sales and inventory losses, both net sales and operating income reached Results the revised targets. • Domestic
Slide 4: Consolidated Statement of Earnings
Consolidated Statement of Earnings Net sales increased while profits declined year-on-year, with both achieving the revised targets. While profits declined on a full-year basis, Q4 returned to growth, partly driven by the price adjustment effect. FY2025 FY2025 Vs. Diff. Diff. Revised Target FY2024 Q
Slide 5: Consolidated Operating Income – Factors Behind YoY Changes
Consolidated Operating Income – Factors Behind YoY Changes Operating income declined due to inventory losses recorded mainly in the first half, which weighed on the gross profit margin, as well as higher SG&A expenses. Increase in selling price resulting Decrease in from price gross profit adjustmen
Slide 6: Consolidated Operating Income – Factors Behind Difference vs. Target
Consolidated Operating Income – Factors Behind Difference vs. Target Although the gross profit margin fell short of the target due to foreign exchange impacts, operating income exceeded the target, supported by higher sales and cost control. R&D Logistics expenses Other (million yen) expenses Market
Slide 7: The Impact of Price Adjustment on Gross Profit
The Impact of Price Adjustment on Gross Profit Following the price adjustment implemented in May 2025, sales volumes declined immediately, offsetting the positive impact of higher prices from May through December. However, from October through December, the negative impact of volume declines eased t
Slide 8: Contents
1. Consolidated Financial Results P2 2. Financial Results by Region and the Target for FY2026 P8 Contents 3. Initiatives in FY2026 P18 4. Appendix P33 5. Overview of Milbon P48 © Milbon Co., Ltd. All rights reserved. 8
Slide 9: Net Sales and Operating Income by Region
Net Sales and Operating Income by Region In Japan, net sales increased while operating income declined year on year, with both achieving the revised targets. Overseas net sales also achieved the target, supported by strong results in the U.S.; however, operating income fell slightly short of the tar
Slide 10: Financial Results by Region: Japan
Financial Results by Region: Japan Net sales exceeded the revised target, supported by steady performance in Q4. Operating income also surpassed the target, driven by higher sales and intensive cost control. YoY Growth Rate of Sales by Quarterly Net Sales (mil. yen) Quarterly Operating Income (mil.
Slide 11: Financial Results by Region: South Korea
Financial Results by Region: South Korea Net sales increased but fell short of the target due to a reactionary decline following the government’s measures in Q3 and the impact of foreign exchange. Operating income declined and fell short of the target, reflecting higher event-related expenses in Q4
Slide 12: Financial Results by Region: China
Financial Results by Region: China Both net sales and operating income exceeded the targets, supported by the strong reputation of our salon support activities, despite the continued sluggish market environment. YoY Growth Rate of Sales by Quarterly Net Sales (mil. yen) Quarterly Operating Income (m
Slide 13: Financial Results by Region: United States
Financial Results by Region: United States Both net sales and operating income increased and exceeded the target, supported by deeper collaboration with distributors and favorable evaluations of our products. In FY2025, we achieved the solid full-year sales growth. YoY Growth Rate of Sales by Quarte
Slide 14: Financial Target for FY2026
Financial Target for FY2026 FY2026 FY2025 Diff. Diff. (%) (Unit: million yen) Target Net Sales 52,863 54,800 1,936 3.7% Japan 39,206 39,880 673 1.7% Overseas 13,657 14,920 1,262 9.2% Gross Profit 33,176 34,720 1,543 4.7% Gross Profit Margin 62.8% 63.4% － － SG&A Expenses 27,523 28,420 896 3.3% Operat
Slide 15: Operating Income Factors Behind YoY Changes (FY2025 to FY2026)
Consolidated Operating Income – Factors Behind YoY Changes (FY2025 to FY2026) In FY2026, we expect operating income of ¥6.3 billion, up 11.4% year on year, absorbing higher costs from inflation and upfront investments despite the absence of prior-year one-off factors. Increase in gross Personnel Inc
Slide 16: Financial Strategy – Long-term Capital Allocation Policy
Financial Strategy – Long-term Capital Allocation Policy ✓ The expansion of the Yumegaoka Factory, previously planned for 2026, has been temporarily suspended and is currently under reconsideration, in light of domestic sales trend. ✓ For growth investments, we plan to utilize interest-bearing debt
Slide 17: Shareholder Returns for FY2026
Shareholder Returns for FY2026 The full-year dividend is planned at ¥88 per share, comprising an interim dividend of ¥40 and a year-end dividend of ¥48. Our initiatives to improve capital efficiency remain unchanged. We will consider flexible share repurchases based on share price trends and cash ne
Slide 18: Contents
1. Consolidated Financial Results P2 2. Financial Results by Region and the Target for FY2026 P8 Contents 3. Initiatives in FY2026 P18 4. Appendix P33 5. Overview of Milbon P48 © Milbon Co., Ltd. All rights reserved. 18
Slide 19: Today's Message
Today’s Message • In the domestic hair salon market, responding to increasingly diverse consumer needs has become essential. We support productivity improvement at hair salons through both service menus and take-home products. • In hair color, we aim to restore sales by launching PRETOWA, a new bran
Slide 20: FY2025 in Review
FY2025 in Review Overseas operations progressed in line with the initial plan in FY2025; however, sluggish domestic sales led us to revise the full year plan downward. We ultimately achieved the revised targets for both sales and profits. Japan Market Rising inflation led to a trend of restrained be
Slide 21: Our Initiative in Japan
Our Initiative in Japan Through our products, education, and services, we have supported productivity improvement at hair salons by enhancing the value of in-salon service menus and expanding purchases of take-home products. Enhanced customer experiences in service menus drive the purchase of take-h
Slide 22: Market Environment in Japan: Trend of Beauty Spending
Market Environment in Japan: Trend of Beauty Spending Household spending on hair and beauty services was at a low level in Q1 of 2025, but has shown a recovery trend from Q2 onward. Consumer purchasing behavior indicates a tendency to limit the amount spent per transaction while continuing to purcha
Slide 23: Market Environment in Japan: Growth Strategy for Hair Salons
Market Environment in Japan: Growth Strategy for Hair Salons Consumers increasingly rely on social media as a daily source of beauty related information. As a result, hair salons are moving toward a model in which they refine individual staff strengths, communicate expertise in defined areas, and ma
Slide 24: Our Initiatives in Japan for FY2026
Our Initiatives in Japan for FY2026 By capturing the small mass market, we aim to support stylists’ information dissemination and to help salons to drive revenue and profit growth through clearly targeted professional and take-home products. Mature Segment Younger Segment Hair Color Hair Care Hair C
Slide 25: Changes in the Hair Color Market in Japan
Changes in the Hair Color Market in Japan Rising salon operating costs and narrowing product performance differences have driven polarization in hair color demand toward low priced and high value-added products, leaving our current offerings in the volume segment less able to fully address these nee
Slide 26: New Hair Color Brand: PRETOWA
New Hair Color Brand: PRETOWA We will launch the new brand PRETOWA in mid-year, leveraging a new technology that enhances hair strength during the coloring process and addresses concerns such as damage that could not be adequately avoided with conventional products. Realizing a high value-added emot
Slide 27: Hair Color Initiatives in Japan
Hair Color Initiatives in Japan Through educational activities led by Field Person, we communicate the value of PRETOWA while supporting the development of salon color menus aligned with polarized consumer needs. Three Pillars to Restore Growth in Hair Color Supporting the Development of Salon Color
Slide 28: Cosmetics Business Overview
Cosmetics Business Overview Overall cosmetics sales declined due to challenges in makeup products in FY2025. However, our core Lotion category remained solid. In 2026, we will continue to position Lotion as the central pillar of our cosmetics strategy. Results in FY2025 Initiatives in FY2026 Due to
Slide 29: Overseas Business: Sales Target
Overseas Business: Sales Target We raised our FY2026 overseas sales target from that set in February 2025, driven by stronger-than-expected sales performance in the United States and the EU. Other Other EU EU ASEAN FY2026 ASEAN FY2026 Overseas Sales South Overseas Sales South Target Korea Target Kor
Slide 30: Overseas Business: The United States and the EU
Overseas Business: The United States and the EU In 2025, sales growth in both the United States and the EU exceeded expectations. In 2026, we will continue a similar sales strategy in both regions. In particular, we aim to expand sales in the United States through growth investment and achieve profi
Slide 31: Overseas Business: South Korea and China
Overseas Business: South Korea and China South Korea is expected to deliver stable growth. In China, despite a challenging market environment, sales increased, and hair color sales showed signs of recovery after bottoming out in 2024. South Korea China In 2025, despite the impact of changes in the e
Slide 32: Financial Target for FY2026
Financial Target for FY2026 FY2026 FY2025 Diff. Diff. (%) (Unit: million yen) Target Net Sales 52,863 54,800 1,936 3.7% Japan 39,206 39,880 673 1.7% Overseas 13,657 14,920 1,262 9.2% Gross Profit 33,176 34,720 1,543 4.7% Gross Profit Margin 62.8% 63.4% － － SG&A Expenses 27,523 28,420 896 3.3% Operat
Slide 33: Agenda
1. Consolidated Financial Results P2 2. Financial Results by Region and Full-Year Outlook P8 3. Initiatives in FY2026 P18 4. Appendix P33 Consolidated Operating Income – Factors Behind YoY Changes and Difference vs. Target (Quarterly) P34 Agenda Consolidated Net Sales and Sales Ratio by Product Cate
Slide 34: Consolidated Operating Income – Factors Behind YoY Changes (Quarterly)
Consolidated Operating Income – Factors Behind YoY Changes (Quarterly) Both net sales and operating income increased. Higher sales and the positive impact of the price adjustment offset increased SG&A expenses. Increase in Decrease in selling price Marketing (million yen) gross profit resulting expe
Slide 35: Operating Income – Factors Behind Difference vs. Target (Quarterly Basis)
Consolidated Operating Income – Factors Behind Difference vs. Target (Quarterly Basis) Operating income exceeded the target, supported by higher sales. Logistics Travel (million yen) expenses expenses Marketing expenses Personnel +28 (20) Other expenses (16) Increase in expenses Increase in gross gr
Slide 36: Consolidated Net Sales and Sales Ratio by Product Category
Consolidated Net Sales and Sales Ratio by Product Category (FY2025 to FY2026 Target) FY2024 FY2025 FY2026 (Unit: million yen) Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Target Net Sales 11,508 13,017 12,467 14,322 51,316 11,180 13,626 13,020 15,035 52,863 54,800 Hair Care 6,670 8,012 7,560 9,080 31,324 6,938 8
Slide 37: Net Sales and Operating Income by Region (FY2025 to FY2026 Target)
Net Sales and Operating Income by Region (FY2025 to FY2026 Target） FY2026 Actual Diff. FY2025 Diff. Diff. (%) Rate*1 (%) (Unit: million yen) Target Net Sales 39,206 39,880 673 1.7% 1.7% Japan Operating Income 4,757 5,090 333 7.0% － Margin(%) 12.1% 12.8% － － － Net Sales 13,657 14,920 1,262 9.2% 8.1%
Slide 38: Forex Assumption and Sensitivities
Forex Assumption and Sensitivities (million yen) Impact on FY2026 Impact on Consolidated Assumption Consolidated Net Sales Operating Income KRW 0.105 yen +1% → +55 +1% → +39 RMB 21.5 yen +1% → +24 +1% → +5 USD 150.0 yen +1% → +25 +1% → +8 THB 4.8 yen +1% → +3 +1% → (28) Operating income is negativel
Slide 39: 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 driven by our strong performance in overseas Japan and South Korea. markets, particularly in the United States. FY2024 FY202
Slide 40: 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 continues to expand steadily, supported by its competition. We aim to regain momentum by supportin
Slide 41: Status of Main Brands – Cosmetics
Status of Main Brands – Cosmetics Cosmetics – Imprea Cosmetics – IM Sales of Lotion, our mainstay product, were steady, while sales of Sales declined due to slow adoption by salons of the newly added other existing products declined. eyebrow mascara items launched in Q1 FY2024 FY2024 FY2025 FY2024 F
Slide 42: Sales Growth and Sales Ratio by Category in Japan and Overseas
Sales Growth and Sales Ratio by Category in Japan and Overseas (Local Currency Basis) FY2024 FY2025 Japan Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Net Sales +9.3% +5.0% +7.7% +3.0% +6.0% (2.5%) +3.2% +0.1% +3.6% +1.3% Hair Care +9.1% +8.9% +13.4% +7.1% +9.4% +6.6% +6.8% +2.1% +6.5% +5.6% Hair Coloring +0.8%
Slide 43: Sales Growth and Sales Ratio by Category in Japan and Overseas
Sales Growth and Sales Ratio by Category in Japan and Overseas (Local Currency Basis) FY2024 FY2025 China Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD Net Sales +4.3% (16.5%) +0.0% +2.0% (2.7%) (3.9%) +13.2% +8.7% +10.9% +6.6% Hair Care +6.2% (3.3%) +8.3% +3.4% +3.6% (0.6%) +10.8% +4.6% +13.8% +6.9% Hair Colorin
Slide 44: Progress on milbon:iD and Smart Salon Initiatives
Progress on milbon:iD and Smart Salon Initiatives milbon:iD Although the number of salons remained flat due to the exclusion of closed salons following a change in the counting method, user registrations continued to grow. Starting in June 2025, we connected milbon:iD to the LINE messaging app to en
Slide 45: Status of Inventory
Status of Inventory (million yen) Increase Factor: ・ Meet demand before next year’s price revision ・ Prepare for new Increase due to products preparations for the anticipated Decrease Factor: demand surge ・ Optimize before the price inventory levels revision ・ Inventory disposal © Milbon Co., Ltd. A
Slide 46: Status of Capital Expenditures, etc.
Status of Capital Expenditures, etc. FY2026 FY2021 FY2022 FY2023 FY2024 FY2025 Target (Unit: million yen) Capital Expenditures 4,644 4,097 3,151 2,865 2,701 1,950 Depreciation and 1,777 2,026 2,213 2,288 2,317 2,410 Amortization Amount 1,741 2,074 2,334 2,452 2,672 2,884 R&D exp. % to 4.2 4.6 4.9 4.
Slide 47: 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 December 31, 2025 Japan 335.4 350.2 361.4 364.8 35 FP
Slide 48: Contents
1. Consolidated Financial Results P2 2. Financial Results by Region and the Target for FY2026 P8 Contents 3. Initiatives in FY2026 P18 4. Appendix P33 5. Overview of Milbon P48 © Milbon Co., Ltd. All rights reserved. 48
Slide 49: 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 50: 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 51: 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 52: 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) Smart Salon initiative started (billion yen) Country (FY2025) Launched milbon:iD, our official online stores Launched Imprea,
Slide 53: 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) (FY2025) Hair Care Products sold for retail
Slide 54: 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 55: 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 56: 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 Salon
Slide 57: 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 58: 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 59: 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 17.9% Kong) 33.2% FY2025 Sales in Other Countries and Regions 3.19 billion yen ASEAN 48.8% © Mil
Slide 60: 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 61: 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) FY2026 Target 88 yen © Milbon Co., Ltd. All rights reserved. 61
Slide 62: 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 rights reserved. 62
Slide 63: 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 64: Overview of Milbon: Status of Dialogues with Shareholders (FY2025)
Overview of Milbon: Status of Dialogues with Shareholders (FY2025) We held 179 meetings during the year, led primarily by the Managing Executive Director responsible for Finance and IR together with an Executive Officer. During the interim and year-end results periods, the President and CEO actively
Slide 65: Overview of Milbon: Status of Dialogues with Shareholders (FY2025)
Overview of Milbon: Status of Dialogues with Shareholders (FY2025) 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 66: Overview of Milbon: ESG Investment Index and External Assessments
Overview of Milbon: ESG Investment Index and External Assessments ESG investment index to be selected THE INCLUSION OF Milbon Co., Ltd. IN ANY MSCI INDEX, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF Milbon C
Slide 67: 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