Financial results of Q1/2020 December
Supporting document

June 4, 2020

Our Efforts in Overcoming COVID-19 Pandemic

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Potential Key Factors Affecting to Our Business Results

P. ７

Timeline of Our Group Office Under COVID-19 Pandemic
Revised Earnings Forecast of FY Ending Dec. 31, 2020
【FYI】E-Commerce Sales Ratio in Key Markets(As of Q1/2020 December)

Agenda

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P. ８

P. ９

Our Efforts in Overcoming COVID-19 Pandemic ①

Our priority is the health and safety of all stakeholders, our employees and their families.
We have been making every effort to prevent the infection and the spread of COVID-19

ZERO infection reported inPigeon group (As of June 3)

Consumers

・Helpful social media posts to pregnant
and post-natal mothers and families

All our domestic and overseas offices/factories
are properly responding to requests and guidances fromnational and local governments.
PartnerCompanies

・Stable supply of products(Esp. Hygiene products and sanitizers)

・Applied “Work from home” policy for all pregnant employees (Japan, Mid. Feb)

Our employeesandCommunities(E.g.)

・Eased conditions for use of accrued PTO for school closures caused by COVID-19(Japan, Mid. Feb)
・Temporally discontinued sales promoters of baby strollers (Japan, Mid. Feb)

・Giveaway disposable face masks and sanitizers to our employees （All PGN group)・Established Teleworking arrangement and policies for back-office staffs (All PGN group)▲Social distancing at Canteen (Thailand）

・NO layoffs (All PGN group)・Updated working policies based on the “New Normal” lifestyle to prevent COVID-19
infection at work (All PGN group)

・Delayed the vacation period (Thailand, following the government’s change inthe Songkran vacation period)©Pigeon Corporation All Rights Reserved. │ Strictly Confidential▲More frequent Sanitization at factory（Turkey）

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Our Efforts in Overcoming COVID-19 Pandemic ②

Based on our raison d'etre of “make the world more baby-friendly”,
Pigeon has been carrying out many Social activities for our community as only we can do the best
To mothers, babies, and their families (E.g.)

・Professional advices to moms and families via social media (Japan)
・Online Breastfeeding seminar (Malaysia)

・Free Breastmilk Storage Bags and Breast Pumps to the Malaysian moms group who live andwork in Singapore. They have been away from their babies because of the lock downin Singapore. Our Bags and Pumps are to help them to deliver mom’s breastmilk to their babies
living in Malaysia.

▲Breastfeeding webinar (Malaysia)

・Q&A, Professional advices and tips of newborn care through social media post and its Livecasting. (China)
・”Covid-19 Support” website created in Lansinoh website (US)©Pigeon Corporation All Rights Reserved. │ Strictly Confidential▲Covid-19 Support page in Lansinoh website (US)▲Professional advices for newborn careon Social media (China)

4Our Efforts in Overcoming COVID-19 Pandemic ③

To frontline Essential Workers who have been working for COVID-19 fight (E.g.)

・Donation of Hand Lotions to healthcare workers (Frequent hand-washing can cause dry and chapped hands)(Japan)・Donation of the bundle of Baby products to the family of doctors and healthcare workers who are dedicating all
their strength for COVID-19 fight (China)
・Donation of Antibacterial hand gels and medical gowns to medical institutions (China)

・Donation of Lanolin cream sample to healthcare workers to help ease bruised face with wearing mask longhours (Spain)
・Frequent posts on social media thanking Essential Workers (US and Europe)
Donation to doctors and healthcare workers (China)▼©Pigeon Corporation All Rights Reserved. │ Strictly Confidential▶

▲“Thank you” message on Social media (US and Europe)5Timeline of Our Group Office Under COVID-19 Pandemic (As of End of May)・Mid. / Feb : Two factories in China resumed operations (40 - 70% operation than normal).
・End / Mar : Two factories in China back to normal operation.
India and Malaysia started “Lockdown” and it caused the shutdown of our local factory and offices.
・End / Apr : Turkey started “Lockdown” and it dragged down operation rate of our factory to 40% than normal.
・End / May : Indian factory resumed operations. (Production will resume on June) .
・End / May : Sales office in Malaysia resumed operations, back to 50% operations than normal.
・All factories in Japan (3 factories), Thailand (2) and Indonesia (1) have been operating as normal between Feb and May.
(All factories have been taken sufficient preventive measures against COVID-19 infection).
・Our sales offices around the world operate on a Teleworking basis followed with government requirements and instructions.

∇∇∇

Back to normaloperation：∇∇∇∇∇∇∇∇©Pigeon Corporation All Rights Reserved. │ Strictly Confidential●

××

× ●

Below 100% operation

×

Operation : 50%●
Operation : 40%（Gov’t. Lock down）∇

Operation resumed
Operation : 40% - 70%×∇

● ××× ●

ChineseNew Year×∇Japan, Thailandand Indonesia ●●Operation : 70%×∇

China ●

∇Turkey ●××∇（Sales office）

×

∇××

∇

××

∇×

Shut down（Gov’t. Lock down）

×

×：Shut down×●

Operationresumed∇∇●（Factory and Sales office）

×∇×∇×May∇● ×Shut down
（Gov’t. Lock down）

Malaysia ●Apr.

∇∇

●Mar.

∇IndiaFeb.

●

Operation : 80%●

Operate as usual●

Operate as usual6

Outlook of COVID-19 : Potential Key Factors Affecting to Our Business Results

Key factors :1. When can we see the sign of “end of Pandemic” of COVID-19 all over the world?
2. How soon and how much of recovery in business activities and consumption trends can each country make after the end of
COVID-19 pandemic?

Business

Key factors affecting toour business results

Wholeworld

The timing of end of theCOVID-19 pandemic

COVID-19 Pandemic in many countries will end in theearly second half of 2020, the business and economic
activities will resume as normal, and personal
consumption immediately begin to recover.

COVID-19 pandemic will continue until late in the second halfof 2020 and that stagnate or even shrink business andeconomic activities, and personal consumption.

Japan・Inbound demand・Personal consumption

Inbound demand and personal consumption
will begin to recover early second half of 2020.

Inbound demand and personal consumption will
stagnate or even shrink throughout 2020.

China

Personal consumption

Personal consumption will make a strong
recovery driven by “Revenge spending”.

Personal consumption will make a mild recovery andnot strong as Pre-COVID-19 throughout 2020.

Restrictions on
business activities

Business activities will get back to normal
early second half of 2020.

Personal consumption in
US and each Europe
country

We will see the signs of end of pandemic andpersonal consumption starts recoverSingapore

・India・Malaysia

Lansinoh・USA・Europe

Case 1: Impact would be modest

Case 2: Impact would be serious

Pandemic will continue until late in the second half of2020 and that brings serious impacts on business andeconomic activities as well as the lives of individuals.

Personal consumption expenditures will remain
the lowest throughout 2020

Other factors : Sharp rise of the price of raw materials, Prolonged stagnation of suppliers, retailers and business partners, and FX rate

©Pigeon Corporation All Rights Reserved. │ Strictly Confidential7

Our Revised Earnings Forecast of FY Ending December 31, 2020

We revised the earnings forecast as below based on the information available to the Pigeon Group as of today. This isbecause the pandemic of the COVID-19 seems still ongoing in many countries around the world in the first quarter of thecurrent fiscal year and beyond. (We disclosed this announcement to the Tokyo Stock Exchange on June 4, Thursday.)(Millions of yen unless otherwise stated)

Net Sales
Previous Forecast（A）

Operating Income

Ordinary Income

109,000

18,10018,100

Revised Forecast（B）

98,500 to 102,400

13,400 to 15,500

Change（B - A）

(10,500) to (6,600)

Change（ ％ ）【Ref.#1】
Dec./2019 results*

Net Income
Attributable to
Owners of Parent

EPS (Yen)

12,600105.23

13,900 to 16,000

9,600 to 10,900

80.17 to 91.03(4,700) to (2,600)(4,200) to (2,100)(3,000) to (1,700)(25.05) to (14.20)(9.6) to (6.1)(26.0) to (14.4)(23.2) to (11.6)(23.8) to (13.5)(23.8) to (13.5)

100,017

17,072

17,284

11,53896.37【Ref.#2】
Dec./2019 results

12 months Estimated103,514

17,21317,367

11,594*The consolidated fiscal year ended December 31, 2019 has changed to the 11 months from February 1, 2019 to December 31, 2019, as a transition period.

©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

96.82
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【FYI】E-Commerce Sales Ratio in Key Markets (As of Q1/2020 December)
EC Sales Ratio of Pigeon / Lansinoh Products
Korea*

China - Pigeon*

India*

40%

UK

37%

US

China - Lansinoh
Singapore*Japan*：Sell-out Others：Sell-in©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

57%

81%

10%

15%

35%

8% （Exclude Cross-Border E-commerce）
9Disclaimer on Forward-Looking Statements

This material includes certain forward-looking statements about the Pigeon Group.
To the extent that statements in this material do not related to historical or current
facts, they constitute forward-looking statements.
These forward-looking statements are based on the current assumptions andjudgments of the Pigeon Group in light of the information currently available to it,
and involve know and unknown risks, uncertainties and other factors, which may
affect the statements made in this material.

Head Office
4-4, Nihonbashi Hisamatsucho,
Chuo-ku, Tokyo 103-8480, Japan©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

URLwww.pigeon.com (Global)
www.pigeon.co.jp (Japanese)10