Milbon Co., Ltd. · TSE:4919
Milbon — Q3 FY2025 Earnings Presentation
55 slides from Milbon's earnings presentation, Nov 14, 2025
Slide 1: Financial Results for Q3 of FY2025
Financial Results for Q3 of FY2025 (Ending December 31, 2025) Milbon Co., Ltd. (TSE code: 4919) November 14, 2025 © Milbon Co., Ltd. All rights reserved.
Slide 2: Contents
1. Consolidated Financial Results P2 2. Financial Results by Region and Full-Year Outlook P7 Contents 3. Appendix P21 4. Overview of Milbon P36 This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy between this translated document a
Slide 3: Key Highlights of Financial Results for Q3 of FY2025
Key Highlights of Financial Results for Q3 of FY2025 FY2025 Net sales increased while profits declined. Both figures remained in line with our downward-revised Q3 YTD target. Results • The domestic salon market continued to experience sluggish growth. Despite this challenging environment, our hair c
Slide 4: Consolidated Statement of Earnings
Consolidated Statement of Earnings Net sales increased while profits declined year-on-year. Both figures remained in line with our revised target (announced on August 8)* . Net profit for Q3 included 290 million yen in extraordinary income from the sale of our former training center in Osaka. Q3 YTD
Slide 5: Consolidated Operating Income – Factors Behind YoY Changes
Consolidated Operating Income – Factors Behind YoY Changes Operating income declined due to inventory valuation losses in the first half, which led to a lower gross profit margin, as well as higher SG&A expenses. Increase in selling price Increase in resulting Decrease in gross profit from price gro
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 effects, operating income slightly exceeded the target, supported by overseas sales and cost control. R&D (million yen) Increase in gross profit expe
Slide 7: Contents
1. Consolidated Financial Results P2 2. Financial Results by Region and Full-Year Outlook P7 Contents 3. Appendix P21 4. Overview of Milbon P36 © 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 inventory losses in the first half and higher SG&A expenses. Overseas sales in local currencies remained strong despite the impact of yen appreciation. Q3 YTD Exchange Exchange Q3 YTD Q3 YTD Actua
Slide 9: Financial Results by Region: Japan
Financial Results by Region: Japan Despite a modest recovery in the domestic market during Q3, both sales and operating income remained in line with our revised target. YoY Growth Rate of Sales by Quarterly Net Sales (mil. yen) Quarterly Operating Income (mil. yen) Product Category* Q3 sales posted
Slide 10: Financial Results by Region: South Korea
Financial Results by Region: South Korea Q3 sales and operating income grew strongly YoY, supported by government measures to stimulate consumption. YoY Growth Rate of Sales by Quarterly Net Sales (mil. yen) Quarterly Operating Income (mil. yen) Product Category* Q1 sales were impacted by political
Slide 11: Financial Results by Region: China
Financial Results by Region: China Despite a sluggish market recovery, our salon support activities were well received, driving sales and operating income in line with the revised target. YoY Growth Rate of Sales by Quarterly Net Sales (mil. yen) Quarterly Operating Income (mil. yen) Product Categor
Slide 12: Financial Results by Region: United States
Financial Results by Region: United States Sales increased significantly, driven by the cross-selling of hair care and hair coloring. Underlying profitability continued to improve, supported by strong sales. YoY Growth Rate of Sales by Quarterly Net Sales (mil. yen) Quarterly Operating Income (mil.
Slide 13: Notice Concerning the Completion of Share Repurchase
Notice Concerning the Completion of Share Repurchase At the Board of Directors meeting held on August 8, we resolved to repurchase our own shares to enhance shareholder returns and improve capital efficiency, and the repurchase was completed on October 27. Class of shares repurchased Common shares T
Slide 14: Assumptions for the Full-Year Outlook
Assumptions for the Full-Year Outlook Full-Year Outlook Q • Although the recovery of the domestic salon market has remained sluggish, as anticipated in August, Japan we expect sales to achieve the full-year target. • We will prioritize initiatives for salons around our core hair care and hair colori
Slide 15: Full-Year Outlook
Full-Year Outlook The full-year target remains unchanged. Q3 year-to-date results were in line with the target, and we remain on track to achieve the full-year guidance. FY2025 Progress Diff. FY2025 FY2024 Revised Diff. Rate (%) Q3 YTD (Unit: million yen) Target (%) Net Sales 51,316 52,300 983 1.9%
Slide 16: Outlook for Medium-Term Management Plan (Through 2026)
Outlook for Medium-Term Management Plan (Through 2026) We remain focused on achieving the ROE target by improving profitability and capital efficiency. However, we will carefully review the domestic market environment, which remains uncertain, as well as our cost structure. An updated outlook will b
Slide 17: Business Update 1: OW BYE TORI
Business Update 1: OW BYE TORI OW BYE TORI, a new hair-styling brand launched in October, has already exceeded its annual sales target. We will continue to drive additional growth through year-end. Highly Evaluated Product Features ＞Bottle design ＞Fragrance ＞Styling compatibility Gross Sales as of O
Slide 18: Business Update 2: WWDBEAUTY Best Cosmetics Awards for Hair Salons 2025
Business Update 2: WWDBEAUTY Best Cosmetics Awards for Hair Salons 2025 Eleven items across eight categories were recognized in the Best Hair Salon Cosmetics Awards, as voted by hair stylists. We also secured first place in the Sales Staff category, reflecting strong acknowledgment for both our prod
Slide 19: Business Update 3: milbon:iD Surpasses One Million Registered Users
Business Update 3: milbon:iD Surpasses One Million Registered Users The milestone of one million registered users of milbon:iD was achieved in October, underscoring its role as a key platform for take-home product purchases. October 2025: (people) Surpassed one million users (salons) June 2020: Laun
Slide 20: Business Update 4: Joint Delivery by Three Manufacturers
Business Update 4: Joint Delivery by Three Manufacturers Three manufacturers, Milbon, ROHTO, and Haleon Japan, sharing common delivery routes have established a joint delivery system, which began operating in August. Going forward, we aim to expand its coverage by leveraging the expertise gained. [N
Slide 21: Agenda
1. Consolidated Financial Results P2 2. Financial Results by Region and Full-Year Outlook P7 3. Appendix P21 Trend in the Beauty Spending Coefficient in Japan P22 Consolidated Operating Income – Factors Behind YoY Changes and Difference vs. Target (Quarterly Basis) P23 Agenda Consolidated Net Sales
Slide 22: Trend in the Beauty Spending Coefficient in Japan
Trend in the Beauty Spending Coefficient in Japan Household spending on hairdressing services and products was at a low level in Q1 FY2025 but showed signs of recovery in Q2. Historical Trend in the Beauty Spending Coefficient* *Source: Hot Pepper Beauty Academy, Recruit Co., Ltd. The Beauty Spendin
Slide 23: Consolidated Operating Income – Factors Behind YoY Changes (Quarterly Basis)
Consolidated Operating Income – Factors Behind YoY Changes (Quarterly Basis) Sales increased YoY, but operating profit declined due to lower gross profit margin and higher SG&A expenses. The positive effect of price adjustment has gradually been materializing. Increase in selling price resulting Dec
Slide 24: Consolidated Operating Income – Factors Behind Difference vs. Target (Quarterly Basis)
Consolidated Operating Income – Factors Behind Difference vs. Target (Quarterly Basis) Operating income slightly exceeded the target, supported by overseas sales and cost control. (million yen) Increase in R&D gross profit expenses Other due to Decrease in gross Personnel +31 expenses higher sales p
Slide 25: Consolidated Net Sales and Sales Ratio by Product Category
Consolidated Net Sales and Sales Ratio by Product Category FY2024 FY2025 FY2025 Revised Q1 Q2 Q3 Q4 YTD Q1 Q2 Q3 Q4 YTD (Unit: million yen) Target* Net Sales 11,508 13,017 12,467 14,322 51,316 11,180 13,626 13,020 37,827 52,300 Hair Care 6,670 8,012 7,560 9,080 31,324 6,938 8,685 7,944 23,569 33,280
Slide 26: 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 27: 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 28: 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 slow adoption by salons of the newly added have received strong market recognition. eyebrow mascara items launched in Q1 of last year. FY202
Slide 29: 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 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% +0.5% Hair Care +9.1% +8.9% +13.4% +7.1% +9.4% +6.6% +6.8% +2.1% +5.2% Hair Coloring +0.8% (0.5%) +1.1%
Slide 30: 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 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% +5.3% Hair Care +6.2% (3.3%) +8.3% +3.4% +3.6% (0.6%) +10.8% +4.6% +4.7% Hair Coloring (0.6%) (33.7
Slide 31: 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, we connected milbon:iD to the LINE messaging app to enable
Slide 32: 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 33: Status of Capital Expenditures, etc.
Status of Capital Expenditures, etc. FY2025 FY2025 FY2021 FY2022 FY2023 FY2024 (Unit: million yen) Q3 YTD Revised Target Capital Expenditures 4,644 4,097 3,151 2,865 1,684 2,611 Depreciation and 1,777 2,026 2,213 2,288 1,706 2,354 Amortization Amount 1,741 2,074 2,334 2,452 1,975 2,710 R&D exp. % to
Slide 34: 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 September 30, 2025 Japan 335.4 350.2 361.4 365.8 35 F
Slide 35: 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 36: Contents
1. Consolidated Financial Results P2 2. Financial Results by Region and Full-Year Outlook P7 Contents 3. Appendix P21 4. Overview of Milbon P36 © Milbon Co., Ltd. All rights reserved. 36
Slide 37: 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 38: 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 39: 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 40: 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 41: 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 42: 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 43: 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 44: 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 45: 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 46: 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 47: 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 48: 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 49: 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. 49
Slide 50: 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. 50
Slide 51: 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 52: 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 53: 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 54: 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 55: 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