Fiscal Year to January 2013
Summary of Results
March 6, 2013
(Securities code: 7956)

President & CEO Akio Okoshi© All rights reserved by PIGEON Corporation

Contents

 Title, Contents

1-2

 Jan. 2013 Results

3 - 14

 Jan. 2014 Forecast

15 - 19© All rights reserved by PIGEON Corporation

2

Jan. 2013 Results© All rights reserved by PIGEON Corporation

3

Jan. 2012 Results and Jan. 2013 Results (Consolidated)
Jan.2012(¥ millions)

AmountJan.2013

YoY Change

Revised Forecast

AmountYoY Change% of Forecast

Net sales

59,145103.7 %

64,90065,075110.0 %

100.3 %

OperatingincomeOrdinaryincome

5,042

110.9 %

6,500

7,086

140.5 %

109.0 %

4,917

110.9 %

6,500

7,389

150.3 %

113.7 %Net income

3,183

108.7 %

3,900

4,573

143.7 %

117.3 %Net assets

27,935103.3 %―

32,365115.9 %―

Total assets

43,772102.5 %―

48,538110.9 %―EPS (¥)

159.05108.7 %

194.87228.53143.7 %

117.3 %BPS (¥)

1,370.46

103.4 %―

1,582.51

115.5 %―

ROA

11.4 %――

16.0 ％――

ROE

11.8 %――

15.5 ％――※ ROA= Ordinary income ÷ Total assets; ROE = Net income ÷ Equity (in both cases, denominators are averaged between beginning and year-end figures)© All rights reserved by PIGEON Corporation

4

Statements of Income (Consolidated)
Jan. 2012(¥ millions)

AmountJan. 2013% of Total

Amount% of Total

YoY Change

Summary

Net sales

59,145100.0 %

65,075100.0 %

110.0 %

Cost of sales

34,82658.9 %

37,31457.3 %

107.1 %

Gross Profit

24,31941.1 %

27,76042.7 %

114.2 %

Selling, General and
Administrative Expenses

19,276

32.6 %

20,67431.8 %

107.3 % ■Main SG&A changes
Personal expenses:＋ ¥ 287m
140.5 % Advertising expenses : ＋ ¥ 705m
Delivery expenses:＋ ¥ 186m
Provision for allowance for―doubtful accounts:¥ (109)mOperating income

5,042

8.5 %

7,086

10.9 %

Total Other Income andExpenses(125)(0.2) %

303

0.5 %

Ordinary income

4,917

8.3 %

7,389

11.4 %

150.3 %

Total Extraordinary
Income and Loss

(193)(0.3) %

(19)(0.0) %―

Less: Minority Interest in Net
Income of Consolidated
Subsidiaries

870.1 %

1400.2 %160.1 %

3,183

5.4 %

4,573

7.0 %

143.7 %Net income© All rights reserved by PIGEON Corporation

5Results by Segment (Consolidated)
Jan. 2012(¥ millions)

Amount% of
Total

Jan. 2013

Gross
MarginSegment
IncomeAmount% of
Total

YoY
ChangeGross
MarginSegment
IncomeConsolidated
net sales

59,145100.0%

41.1%

5,042

65,075100.0%

110.0%

42.7%

7,086

Domestic Babyand Mother Care
Business

24,047

40.7%

46.5%

3,677

23,882

36.7%

99.3%

46.8%

3,379

Child-rearing
Support Services

5,990

10.1%

11.5%

152

6,388

9.8%

106.6%

11.4%

182

Health Care andNursing Care
Business

6,469

10.9%

29.3%350

6,699

10.3%

103.6%

30.6%

212

Overseas Business

21,584

36.5%

48.1%

3,909

26,96441.4%

124.9%

50.6%

6,387

Other

1,052

1.8%

15.6%

138

1,140

1.8%

108.4%

15.2%

141※Segment income in consolidated amount (all unclassifiable operating expenses)
have been adjusted and posted as operating income in the quarterly consolidated statements of income© All rights reserved by PIGEON Corporation

6Overseas Business Sales by Region(¥ millions)

Local currency basis: +135.3%

26,922
Local currency basis: -4.6%

21,542*Currency rates (Jan. 2013): US$1 = ¥79.80; 1 yuan = ¥12.66; (Jan. 2012): US$1 = ¥79.79; 1 yuan = ¥12.34© All rights reserved by PIGEON Corporation

7

Key Priorities for the Year to Jan. 2013
■ Domestic Baby and Mother Care Business- Expanding into new areas of business such as large merchandise- Growth of the IT business■ Child-rearing Support Services- Realize further improvements in child-rearing quality;
continue steady expansion of business■ Health Care and Nursing Care Business- Reconstruct business organization; reinforce sales activities for the facilities route and newchannels- Improve the competitive power of the products focusing on those in important
categories and make an effort in sales-promotion activities■ Overseas Business- China: Achieve further growth by reinforcement of the brand name and measures in growing
business categories
Reinforce sales of new products and items manufactured at the new factory in Changzhou- Europe and America: Steady growth of the newly developed brands (mOmma, etc.)- Market expansion: Aim at increasing the market share in India, Malaysia, South Korea, etc.

© All rights reserved by PIGEON Corporation8

Domestic Baby and Mother Care Business / Child-rearing Support Services■ Domestic Baby and Mother Care Business[New products for babies released during the second half]
Soft Furikake for baby, Angel & Girl Hair Care Series, others[Maternity & baby skincare]

New products “Pigeon organics” series[Large merchandise business]

SOLACICA strollers, others[Direct communication]

48 maternity events held with approximately 3,300 people participating■ Child-rearing Support Services[New contract of entrustment] Authorized nursery school (1)Total 195 facilities
Market Share by Product (Jan. 2013)bottleabybottlenipp
lesdeBabterg
yenbotttl
esterilize
Br
re
astp
ads
Mag
Mag
B
ab
yfood
Skinca
re
B
abyw
ip
es

Main products to be launched during theSpring of 2013 (first half of the year)

B

B
aby

B
ab
ybottles

100%
90%80%70%
60%
50%
40%
30%
20%
10%0%

Nursery facilities within business establishments (4)※Source: POS Nationwide Drugstore Growth Estimates, INTAGE Inc. (monthly data)© All rights reserved by PIGEON Corporation

Yasai de rakugakipastes

UV babyseries

Mahalo stroller

9Health Care and Nursing Care Business■ Health Care and Nursing Care Business

Habinurse

Recoup・ Focus on Pigeon Tahira (agent for distribution to healthcare facilities)
・ Walking aid products: Wheelchair sales are strong
・ New products: “Comfort Assist” “Kaori Kakumei”
・ Start of the Pigeon Manaka day service, smoothly increase users
・ New products: Walking Support Shoes
・ Expanding sales through catalog mail orders and TV shopping

Habinurse “Kaori Kakumei”

Recoup “Walking Support Shoes LU”© All rights reserved by PIGEON Corporation

Pigeon Manaka Day Service “SanSan”

10Overseas Business■Overseas Businesses

China・Restructuring and improvement of the distribution system completed, and the relationship with sale agents isexcellent.
・ Sales of new products are also progressing favorably
・Production output and operation are increasing in two production facilities due to business expansion.
・Our awareness program related to caring for breastfed infants conducted jointly with our Sanitation
department are continually being implemented
・Focus on the Promotion activities (Performance of a play for Maternity, others)

Europeand America

・Temporary stagnation of performance due to the slowing economy and decrease in the number oflive births as well・Focus on penetration of “mOmma” and “earth friendly baby” brands

New markets

・India: Establishment of the distribution system, increase in the number of shops selling the Group’s
products and installation of Pigeon Counters
・Korea: To strengthen the structure for business expansion, a sales branch was reorganized into a localcorporation.

China: Performance of a play for Maternity
China: Pigeon Shanghai 10-year anniversary commemoration product (baby bottle)© All rights reserved by PIGEON Corporation

Pigeon Counters in India

11Reference: Balance Sheet Highlights (Consolidated)
Jan 12
AmountJan 13
AmountYoY Change(Amount)(¥ millions)YoY Change(%)

Cash and deposits

7,293

10,574＋ 3280

145.0 %

Notes and accounts receivable

9,993

10,540＋ 547

105.5 %

Inventories

6,926

6,776(149)

97.8 %

Notes and accounts payable

3,758

3,864＋ 105

102.8 %

Borrowings

4,898

3,620

(1,277)73.9 %Net assets

27,93532,365＋ 4,429115.9 %

Total assets

43,772

48,538＋ 4,766

110.9 %

Equity ratio

62.7%

65.3%－＋ 2.6pt■ Notes and accounts receivable:© All rights reserved by PIGEON Corporation⇒

Increase due to business expansion

12

Reference: Cash Flows
7,656(1,848)(¥ millions)(3,149)4,212(1,871)

622

10,574(1,776)
(98)

6,827

7,293

Acquisition of PPE : ¥(1,745) m(Jan. 2012: ¥(1,416) m)

7,293

Loan income/repayments : ¥(1,337) m(Jan. 2012: ¥ 38 m)
Payment of cash dividends : ¥(1,761) m(Jan. 2012: ¥(1,758) m)

Income before income taxes :¥7,369 m(Jan. 2012: ¥4,723 m)
Decrease (increase) in trade receivables : ¥192 m(Jan. 2012: ¥(93) m）

Jan. 2012 (55th Term)

Jan. 2013 (56th Term)

Balance at
Beginning

Operating
Activities

Investing
Activities

Financing
Activities

Translation/Valuation Gain (Loss)

Balanceat EndBalance at
Beginning

Operating
Activities

Investing
Activities

Financing
Activities

6,827

4,212

(1,871)(1,776)

(98)

7,293

7,293

7,656

(1,848)(3,149)© All rights reserved by PIGEON Corporation

Translation/Valuation Gain (Loss)

622

Balanceat End10,57413

Reference: Investment-Related Indicators(Consolidated)(¥ millions)Jan. 2012

Jan. 2013

Interim(Result)

Full Year(Result)Interim(Result)

Full Year(Result)

Capital expenditures ※1

1,085

1,672710

1,204

Depreciation(tangible fixed assets)

722

1,381681

1,426

Research and development※2755

1,497764

1,620※1 Refers to purchase of tangible fixed assets, excluding construction in progress※2 Refers to total R&D expenditures, including personnel-related© All rights reserved by PIGEON Corporation

14

Jan. 2014 Full Year Business Forecasts© All rights reserved by PIGEON Corporation

15

Jan. 2013 Results and Jan. 2014 Forecast (Consolidated)(¥ millions)Jan. 2013AmountJan. 2014 (Forecast)% of Total

YoY Change

Amount% of Total

YoY Change

Net sales

65,075100.0 %

110.0 ％

73,500100.0 %

112.9 %

Operating income

7,086

10.9 %

140.5 ％

7,800

10.6 %

110.1 %

Ordinary income

7,389

11.4 %

150.3 ％

7,800

10.6 %

105.6 %Net income

4,573

7.0 %

143.7 ％

4,850

6.6 %

106.0 %Net assets

32,365－115.9 ％

34,733－107.3 %

Total assets

48,538－110.9 ％

51,392－105.9 %EPS(¥)

228.53－143.7 ％

242.34－106.0 %BPS (¥)

1,582.51－

115.5 ％1,697.77－

107.3 %

ROA

16.0 %－―

15.6 %－－ROE

15.5 %－―

14.8 %－－*ROA refers to current return on total assets, ROE refers to Net return on equity. Denominator in each case is then average for the term

© All rights reserved by PIGEON Corporation

16

Sales by Business Segment (Consolidated)
Jan. 2013(¥ millions)

Amount% ofTotal

Gross
MarginJan. 2014 (Forecast)
Segment
IncomeAmount% ofTotal

YoY
ChangeGross
MarginSegment
IncomeConsolidated
net sales

65,075100.0%

42.7%

7,086

73,500100.0%

112.9%

42.2%

7,800Domestic Babyand Mother Care
Business

23,882

36.7%

46.8%

3,379

24,95634.0%

104.5%

45.7%

3,785

Child-rearing
Support Services

6,388

9.8%

11.4%

182

6,435

8.8%

100.7%

11.9%

219

Health Care andNursing Care
Business

6,699

10.3%

30.6%

212

7,000

9.5%

104.5%

30.7%

352

Overseas Business

26,964

41.4%

50.6%

6,387

34,08446.4%

126.4%

49.7%

7,830

Other

1,140

1.8%

15.2%

141

1,023

1.4%

89.7%

12.2%

103

※Segment income in consolidated amount (all unclassifiable operating expenses)
have been adjusted and posted as operating income in the consolidated statements of income※Assumed exchange rates of Overseas Business: US$1 = ¥84.00 ; 1 yuan = ¥13.30© All rights reserved by PIGEON Corporation17

Key Priorities for Year to Jan. 2014
■ Domestic Baby and Mother Care Business- Steady growth and expansion of large merchandise business by launching new products- Establishment of new category“Pigeon for over 18 months old” series and “women's wellness” category■ Child-rearing Support Services- Realize further improvements in child-rearing quality and efficient business management■ Health Care and Nursing Care Business- Reconstruct business organization and improve the profitability; reinforce sales activities forthe facilities route- Realize the strategy for growth with the main products as the key■ Overseas Business- China :Launch the products of new category
Achieve further reinforcement of the brand power by increasing intensive promotion
hospitals, etc.
- Europe and America: Launching new products and steady growth of the brands (mOmma, etc.)- Market expansion: Growth of the market share in India, Malaysia, South Korea and entry new market.

© All rights reserved by PIGEON Corporation18

Shareholder Return and Investment-Related Indicators[Shareholder return indicators under Fourth Medium-Term Business Plan]
・ Adopt flexible approach to upgrading shareholder return (incl. through share buybacks), targeting
continued total shareholder return ratio of 50% or higher
Dividend Status

Dividend per share
Payout ratio

Jan. 2011

Jan. 2012

Jan. 2013

Interim(Result)Year-End(Result)Interim(Result)

Year-End(Result)

44

44

44

44

60.1%

55.3%

InterimJan. 2014(Result)

Year-End(Plan)

Interim(Plan)

Year-End(Plan)

4471

61

61

50.3%50.3%[Reference] Capital expenditure indicators※ Refers to purchase of tangible fixed assets, excluding construction in progressJan. 2011

Jan. 2012

Jan. 2013

Jan. 2014

Interim(Result)Year-End(Result)Interim(Result)Year-End(Result)Interim(Result)Year-End(Result)Year-End(Plan)

Capital expenditure※

954

2,938

1,085

1,672

710

1,204

2,561

Depreciation(tangible fixed assets)

650

1,364

722

1,381

681

1,426

1,381

© All rights reserved by PIGEON Corporation

19

Corporate Overview
PIGEON CORPORATIONHead office
4-4, Nihonbashi-Hisamatsucho, Chuo-ku, Tokyo103-8480, Japan
Tel: +81-3-3661-4200+81-3-3661-4188 (Investor Relations)Fax:+81-3-3661-4320
E-mail address
InvestorRelations@pigeon.com

URL http://www.pigeon.co.jp /http://english.pigeon.co.jp/
In this document, statements other than historical facts related to plans, forecasts, andstrategies are based on information available at the time of writing.
The Corporation cannot provide guarantees or commitments for these forward-lookingstatements.
Due to various factors, actual results may differ significantly from those anticipated in thisdocument.

© All rights reserved by PIGEON Corporation20