Financial Results of Q2 / Dec. 2023
(January to June)（Securities Code：7956）

Norimasa Kitazawa

President and CEO
August 10, 2023

Q2 / December 2023 (FY 67th)
Q2 Financial Results
Full-Year Forecast

AgendaP. ３ - 13

P. 14 - 20

Financial Results of Q2 / Dec. 2023

FY 2023 Q2 Results - Consolidated P&L
Net sales increased 6.0% y-o-y, driven by Japan and China businesses. In addition to higher profits due to increased
revenue, improved gross margin absorbed increased SG&A expenses, resulting in higher operating income.

Unit: Million JPY

Q2 / Dec. 2022
ActualQ2 / Dec. 2023

% of Total

Actual% of Total

YoY Change

Net Sales

45,292

ー

48,002ー

106.0%

Cost of Sales

24,54354.2%

24,70051.5%

100.6%

Gross Profit

20,74945.8%

23,301

48.5%

112.3%

SG&A Expenses

15,631

34.5%

16,78935.0%

107.4%

Operating Income

5,118

11.3%

6,511

13.6%

127.2%

Ordinary Income

6,404

14.1%

7,117

14.8%

111.1%Net Income Attributableto Owners of Parent

3,990

8.8%

4,566

9.5%

114.4%[Currency Rates] 2023 Q2 Results: US$1 = JPY 134.95
2022 Q2 Results: US$1 = JPY 123.15

CNY 1 = JPY 19.46
CNY 1 = JPY 18.97©Pigeon Corporation All Rights Reserved. │ Strictly Confidential4

FY 2023 Q2 Results - By Business Segment
Unit: Million JPY

Q2 / Dec. 2022
Segment
ProfitNet Sales% of Total

YoY Change

45.8%

5,118

48,002ー

106.0%

48.5%

6,511

39.5%

32.6%

592

18,40838.3%

102.8%

34.4%

1,182

16,238

35.9%

49.3%

4,609

18,061

37.6%

111.2%

54.2%

5,497

Singapore Business

6,924

15.3%

40.6%

1,210

6,607

13.8%

95.4%

38.5%

840

Lansinoh Business

7,814

17.2%

51.5%

252

8,728

18.2%

111.7%

52.2%

345

Elimination of intersegment transactions(3,588)(7.9%)

ーー(3,803)(7.9%)ーーー

Net Sales% of Total

Consolidated
Net Sales

45,292ーJapan Business

17,904China Business

Gross
MarginQ2 / Dec. 2023
Gross
MarginSegment
Profit[Reference] Breakdown of Japan BusinessQ2 / Dec. 2022

Q2 / Dec. 2023

Net Sales% of Total

Gross
MarginBaby care

12,471

ー

36.7%

717

12,937ー

103.7%

39.8%

1,342

Childcare Services

1,738

ー

16.3%

107

1,741

ー

100.2%

16.8%

122

ー

31.7%

255

2,394

ー

96.3%

31.1%

202

Unit: Million JPY

Health & Elder
2,486
Care
©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

Segment
ProfitNet Sales% of Total

YoY Change

GrossMarginSegment
Profit5

FY 2023 Q2 - Analysis of Change in Operating Income (YoY)
Same trend as Q1, SG&A expenses increased 1.15 bn yen y-o-y due to increase in sales promotion and logistics costs associated withthe reopening. Operating income increased by 1.39 billion yen y-o-y due to increased revenue and improved gross margin.
(Some of the sales promotion expenses, etc. have not yet been spent in Q2 YTD as planned, will be carried over in the second half.)+12.9(Unit: 100M. JPY)

51.1

+12.4

(1.5)

(5.1)

■ Operating Income Increase

Q2 2022
OperatingincomeIncreased
Gross Profit byhigher sales©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

Impact ofGross Margin
improvement

Personnel
expenses

65.1
(2.8)

(1.9)

■ Decrease

Marketingrelated
expenses

Travel andLogistics
expenses

Other
expenses

Q2 2023
Operatingincome6

FY 2023 Q2 - Consolidated Balance Sheet (Highlight)
Unit: Million JPY

End ofFY Dec. 2022
ActualQ2 / FY Dec. 2023
YoY Change(Amount)

ActualYoY Change(%)

YoY Change (Amount) w/o
impacts of FX rates

Cash and Deposits

34,28332,480(1,802)

94.7%(3,051)

Notes and Accounts
Receivable - Trade

15,975

17,1451,170

107.3%

427

Inventories

15,318

16,8391,521

109.9%

652

Notes and Accounts
Payable - Trade

5,066

4,647

(419)

91.7%

(594)

Electronically Recorded
Obligations - Operating

1,542

2,138

596

138.6%

596

Borrowings

ー

67

67

ー

61

Net Assets

79,952

83,0563,103103.9%

587

Total Assets

101,733

105,0913,357

103.3%(782)

Equity Ratio

75.4%

75.7%

ー

ー

ー

©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

7Announced in Feb. 2023 : 8th MTP Key Actions

Implementation of structural reforms

Sustained growth in “Existing areas” and exploration and cultivation of “New areas”

Existing Business Areas

New Business Areas

・Strengthen nursing bottles and baby skincare
which we have a strong competitive edge.

・Expansion of core customer target group

・Structural reforms in each business- Lansinoh and Singapore business: Accelerating Growth- China business: From "High-Growth" to "Stable-Growth"- Japan Business: Improve the profitability- Toddlers- Mothers To Be- Fathers

・Expansion of our target market- North America (Pigeon brand)- Africa region[Common in Existing and New areas] Strengthen Brand strategy and “Monozukuri”©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

8

FY 2023 Q2 Results - Business Summary By Segment*Sales: Sell-in on a local currency basis

Domestic demand recovered after the “Reopening”. Core products remained strong even after the pricerevision in February, resulting in increased sales and profitJapanbusiness• Baby care sales are on a steady recovery trend with a y-o-y increase of +3.7% YTD.
• Sales of nursing bottles and skincare increased y-o-y. Sales remained stable after the price revision and maintained No.1
market share.
• “ME. by Pigeon”, the new category of the prenatal and postpartum care products launched in February is now available in
Femine care shelf of offline stores.
• Inbound demand remained flat, but sales of the Momo-no-ha skincare grew y-o-y due to the increase of overseas demand.
• Gross margin of Baby care improved by +3.1pts y-o-y YTD; price revision in February also contributed.
• Health and elder care promoted new product “Mist for bottom wipe” and renewed “Liquid Thickening”.

New Category: ME. by Pigeon
Available at 2,000+ Tsuruha Drug stores

Monozukuri : New Products in 1H 2023
Strollers for use up to 4 years old

Brand: Communication
Offline events are back after reopening
Promotion of strollers

The 37th Tree RaisingCampaign©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

9FY 2023 Q2 Results - Business Summary By Segment*Sales: Sell-in on a local currency basis

In mainland China, sales and income increased y-o-y driven by the growth in nursing bottles and skincare

Chinabusiness

Sales in mainland China grew steadily, +5% YTD y-o-y.
Nursing bottle sales increased +28%, skincare increased +6% y-o-y.
Products for toddlers (skincare) are expanding sales both offline and through EC.
In June, new model of nursing bottle for infants with new straw nipples (Against competitors) was launched.
Gross margin of China business (JPY) improved by +4.9pts y-o-y due to increase in sales composition of nursing bottle andskincare.
• Sell-out was down 3% YTD y-o-y. Offline: -16%, EC sales grew by 3% y-o-y especially Tiktok and Pinduoduo achieved
double-digit growth. EC ratio expanded to 73%.
•
•
•
•
•

New Area: Skincare for toddlers
Sales are expanding both offline and in EC©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

Monozukuri : New Products in 1H 2023
Launched new bottle series, panda drinking cups, etc

Brand: Communication
Implemented Live-streamed factory tourand new product launch event on the
key social media

10

FY 2023 Q2 Results - Business Summary By Segment*Sales: Sell-in on a local currency basis

Sales in major countries declined, mainly due to the rebound from the sharp recovery in the previous year

Singaporebusiness• YTD sales* in India -31%, Malaysia -12%, Indonesia -11%, Middle East -15%.
• Sellout in India, Australia, and Thailand grew y-o-y. Indonesia also saw y-o-y growth in core products.
• New model of wide-neck nursing bottle have been launched in almost all markets. We will further strengthen ourcommunication activities to expand sales of wide-neck bottles, and at the same time, we will further increase the numberof new products, including for infants.
• Skincare launched new products (baby powder and body soap refill) in the Natural Botanical series.
• Gross margin of Singapore business deteriorated by -2.1pts y-o-y due to sales decline at sales companies and soaring raw
material prices

Strengthening core products:
wide-neck nursing bottle
Strengthening sales in both offlineand e-commerce©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

Monozukuri : New Products in 1H 2023
New products in the Natural Botanicalseries and New bottle sterilizer/dryer

Brand: Communication
Implemented online Breastfeeding seminars
and product review to focus on promoting thevalue of wide neck bottles

11

FY 2023 Q2 Results - Business Summary By Segment*Sales: Sell-in on a local currency basis

Sales in North America fell below the previous year's level, but sales in Europe and China increased.
Procurement and logistics cost outlook still uncertain

LansinohBusiness• Lansinoh Group sales* increased +2% YTD y-o-y. Sales in North America were down 6% y-o-y due to shipping delays
requested by customers and delays in the launch of some new products, but sales in Europe (Germany, UK, and France)
grew driven by nipple cream and other core products.
• Sales of prenatal and postpartum care products grew by double digits y-o-y led by strong sales in North America, UK,
Germany and Benelux• Announced new global brand vision "Stand with the mothers”.
• New products in Q2: Soothies® C-section Recovery Pads and stackable breastmilk storage bottles.
• Gross margin improved by +0.7pts y-o-y, partly due to lower ocean freight rates (COGS factor), but distribution costs in the
U.S. (SG&A factor) continued to soar. Operating income growth slowed down due to aggressive investment in SG&A
expenses such as brand renewal and reopening in China.

Brand: Vision Renewal
While keeping Lansinoh's core values,
Evolving into a brand that is closer to moms

©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

Monozukuri : New Products in 1H 2023
Launched new prenatal and postpartum
care products, etc.

Communication
Strengthening digital communication
through key social media in all market.
(Breastfeeding support, and Pericare)

12

FY 2023 Q2 Results - ESG and Sustainability
Working to co-create value with society to realize a “Vision of a Baby-Friendly Future”

ESG• Approximately 400 kg of plastic, glass, and nipples (silicone) were collected for recycle at 124 Akachan-Honpo storesnationwide.
• Supporting mothers and newborns in need with the donation of babycare products (Germany - Lansinoh)• Providing "Lesson for learning about babies: For a baby-friendly future"• Selected as a component of "Morningstar Japan ex-REIT Gender Diversity Tilt Index"

Amount collected in 3 months

Approx. 400 kg
Collection and Recycle box of
Pigeon nursing bottle (Japan)©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

Donation of baby care products
to the “Welcome-Baby-Bags” project(Germany)

Provide educational programs to get juniorhigh school students interested in babies(Japan)13

Full-Year Forecast / FY Dec. 2023

FY 2023 Full-year Forecast - Unchanged
No change in the full-year forecast. Steady implementation of key themes to achieve the initial year of the 8th Mid-Term Plan
The carry-over of SG&A expenses will be spent to boost sales in the Singapore business and to strengthen sales of new productsthat delayed its launch, etc.

Unit: Million JPY

FY Dec. 2022
ActualFY Dec. 2023 Outlook% of Total

Forecast% of Total

YoY Change

Net Sales

94,921100.0%

100,000

100.0%

105.4%

Cost of Sales

50,08752.8%

51,80051.8%

103.4%

Gross Profit

44,83447.2%

48,20048.2%

107.5%

SG&A Expenses

32,63834.4%

35,80035.8%

109.7%

Operating income

12,195

12.8%

12,40012.4%

101.7%

Ordinary income

13,46514.2%

12,400

*

12.4%

92.1%

Net Income Attributableto Owners of Parent

8,581

9.0%

8,100

8.1%

94.4%

* Subsidy income not included©Pigeon Corporation All Rights Reserved. │ Strictly Confidential[Currency rates] FY Dec. 2022 Results: US$1 = JPY 131.55 / CNY 1 = JPY 19.50
FY Dec. 2023 Budget: US$1 = JPY 130.00 / CNY 1 = JPY 19.50

15

FY Dec. 23 - New Products and Topics for the Second Half
New products in 2H

Japan

SHUPOT the electric nasal aspirator, Parts for nursing bottles (Lid, Straw), etc.

China

New series of drinking cups, baby skincare ocean series, etc.

Singapore

Additional design of the wide-neck nursing bottle (including eco-friendly materials), electric breast pump (Go Mini Plus), etc.

Lansinoh

Wearable breast pump, etc.

Nursing bottle parts

Reached 600K+ on social media
even before launch

Other Key Topics

Electric nasal aspirator: SHUPOT
redesigned our 200,000 units
sold nasal aspirator

Wearable breast pumpGroup's first hands-free model launched• Full-scale operation of new Fuji plant (Japan, September)• Second product price revision in the Japanese market (scheduled for September)• Preparing for the Pigeon brand to enter the African market (Kenya)©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

16

FY Dec. 2023 : Shareholder Returns and Investment
Dividends
Dividend per Share (yen)Dec. 2021

Dec. 2022

Dec. 2023

Interim(Actual)Year-end(Actual)Interim(Actual)Year-end(Actual)Interim(Scheduled)Year-end(Forecast)

37

37

38

38

38

38

112.4%

Dividend payout ratio

100.9%

106.1%(Full-year Forecast / Year-end)

Investment-related
Indicators (Consolidated)
Unit: Million JPY

Dec. 2021

Dec. 2022

Dec. 2023
interim(Actual)Full-year(Forecast)Interim(Actual)Year-end(Actual)Interim(Actual)Year-end(Actual)Capex (*1)

2,013

6,735

2,814

7,259

3,775

5,600

Depreciation (*2)

1,986

4,161

2,381

4,947

2,518

5,100

R&D Expenses (*3)

1,709

3,603

1,802

3,792

2,000

4,800

*1: Property, plant and equipment and intangible assets (including long-term prepaid expense)*2 : Depreciation (including amortization of goodwill)©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

(*4)

(*4)

*3 : Total expenses of R&D activities, including personnel costs*4 : Monozukuri expense for FY Dec. 2023

17

For Sustainable Growth: The Source of Pigeon's CompetitivenessResearch and Development Activities - Skincare
Establishing a position as a rule maker(proprietary quality and safety evaluation method)

Construction andUtilizationof Baby’s 3D skin
model

➡

Define theproper skincare
for babies©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

Development of proprietary raw materials(Expansion of business opportunities as a supplierof functional raw materials)➡

3D skin model research
conference presentation
Papers to be published

Development of high-function products to meet
all the needs of growing babies(by age, for atopic, eczema, sensitive skin, etc.)

Further uniqueness andcompetitive advantage.
Building Barriers to Entry.

18

For Sustainable Growth: The Source of Pigeon's CompetitivenessPromoting research and development of baby skincare products in Japan and China that only Pigeon can provide●Pigeon Home Products (Japan)

・The new plant will start operation in September 2023
・Production capacity expansion
・Strengthening of baby skin research and R&D capability
・Challenging new fields such as D2C and products unique to Japan©Pigeon Corporation All Rights Reserved. │ Strictly Confidential●Pigeon Manufacturing (Shanghai)・Leading the Pigeon Group's skincare research
・In June 2022, we established the "Cellular and Molecular Biology
Research and Testing Laboratory" to further deepen our skincare
research and develop baby’s 3D skin model・Publicize our research widely through multiple publications.

19For Sustainable Growth: The Source of Pigeon's Competitiveness
Collaboration with hospitals and healthcare professionals
Having a joint research and development inhospital use products with obstetricians,
and NICUs, etc.

Hospital
Activities

re-strengthening since
Covid-19 reopening©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

Enhancement of breastfeeding support
environment (Support for setting up inhospital breastfeeding rooms)
Collaboration and relationship building withrelated organizations (e.g., Breast milk banks
in Japan and overseas)

・Deepen research and product development capabilities
・Horizontal deployment of knowledge within the Group・Gaining the trust of healthcare professionals

・Recommendation of our products to customers➡

Roots of our strength
since the Pigeon founded

Providing information to healthcare
professionals (Introducing research results
and holding study sessions)

Create a strong presence
as a global brand20

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.

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

URL http://www.pigeon.co.jp/
http://www.pigeon.com/

21

Appendix

FY 2023 Q2 Results - Financial Highlights (Consolidated)
Unit: Million JPY

Q2 / Dec. 2022
ActualQ2 / Dec. 2023

% of Total

Actual% of Total

YoY Change

Net Sales

45,292

ー

48,002ー

106.0%

Operating Income

5,118

11.3%

6,511

13.6%

127.2%

Ordinary Income

6,404

14.1%

7,117

14.8%

111.1%Net Income Attributableto Owners of Parent

3,990

8.8%

4,566

9.5%

114.4%Net Assets

81,875ー

83,056ー

101.4%

Total Assets

104,274ー

105,091ー

100.8%EPS (yen)

33.35

ー

38.17

ー

114.5%BPS (yen)684.25ー665.23

ー

97.2%

ROE *

10.5%

ー

11.2%

ー

ー

ROIC *

9.0%

ー

11.2%

ー

ー

* ROE: Return on Equity (shareholders’ equity + accumulated other comprehensive income), calculated with equity being the average of the beginning and ending balances* ROIC: Return on Invested Capital (NOPAT/Invested capital, calculated with a tax rate of 30.0% and invested capital being the average of the beginning and ending balances©Pigeon Corporation All Rights Reserved. │ Strictly Confidential23

FY 2023 Q2 Results - Pigeon Sales by Region (YoY)

CHN
UAE

-15%
IND

+5%

VNM

(Middle East)

- 31%

KOR

JPN

- 45%
MYS

+4%

(Baby Care)

-12%
SGP

©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

+23%

- 7%

IDN

AUS

+94%

-11%

Sell-In (Local Currency)24

FY 2023 Q2 Results - Lansinoh Sales by Region (YoY)
GBR
CAN

USA

- 6%

- 6%

©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

DEU

BENELUX+13%+10% TUR

+8%

CHN

+89%

+42%

Sell-In (Local Currency)25

FY 2023 Q2 Results - Overseas Sales by Region
China (including Hong Kong)

Other Asia

North America

EuropeNear and Middle East

Other areas

2,182
Q223/12期
FY Dec. 2Q
2315,800+5.5% in local currency

5,115

30,746

5,611
1,323

-4.2% in local currency

1,691
Q222/12期
FY Dec.2Q
22

14,6055,011

28,393

5,345
1,110

0

5,000

©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

10,00015,00020,00025,00030,000[Currency Rates] 2023 Q2 Results: US$1 = JPY 134.95
2022 Q2 Results: US$1 = JPY 123.15(Millions of yen)
CNY 1 = JPY 19.46
CNY 1 = JPY 18.97

26

FY 2023 Q2 Results - Consolidated Cash Flow Comparison(Millions of yen)
Purchase of tangible and intangible fixed assets(Fuji factory related assets, etc.): ¥(3,415)[Q2 / Dec. 22: ¥(2,757)]

5,706

Dividends paid: ¥(4,558)[Q2 / Dec. 22: ¥(4,425)]

5,358

35,2182,038( 2,790 )

35,55734,283

1,251( 3,210 )( 4,614 )32,480( 5,202 )Income before income taxes: ¥7,113[Q2 / Dec. 22: ¥6,385]

Q2 / Dec. 2022

Q2 / Dec. 2023

Balance at

Operating

Investing

FinancingTranslation

Balance atBalance at

Operating

Investing

FinancingTranslation

Beginning

Activities

Activities

Activities

Adjustment

End

Beginning

Activities

Activities

Activities

Adjustment

End35,2185,706(2,790)(4,614)2,038

35,55734,283

5,358(3,210)(5,202)

1,251

32,480©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

Balance at27

FY 2023 Q2 - Consolidated PVA Tree (Breakdown of PVA)
Consolidated

Net sales

Operating profit

Top: Q2 / Dec. 2023 Results
Bottom: Q2 / Dec. 2022 Results(Unit : Million JPY)NOPAT

Q2 Results 4,558
LY Q2

Q2 Results 6,511
LY Q2

3,582

Q2 Results 48,002

5,118

LY Q2

Tax

Cost of sales

Q2 Results 1,953
LY Q2

Q2 Results
LY Q2

PVA

2,519
1,598

Capital invested

Q2 Results 81,538
LY Q2

79,343(Reference)

Capital invested Q2Q2 Results 40,769
LY Q2

39,671

WACC

common 5.0%

©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

Q2 Results 25,941
LY Q2

24,105

Fixed asset

Q2 Results 35,800
LY Q2

32,832

Cash and otherasset and liability

Q2 Results 19,798
LY Q2

Q2 Results 24,700

1,535Working capital

22,40445,292LY Q2Trade receivables

Q2 Results 16,560
LY Q2

17,084Inventory asset
Q2 Results 16,079
LY Q2

13,632

Trade payables

Q2 Results 6,698
LY Q2

6,612

24,543

SG&A expenses

Q2 Results 16,789
LY Q2

15,631

（参考）

研究開発費

見込 0
前期 0

発送費

見込 0
前期 0

*B/S Factors for PVA calculation are averaged between beginning and year-end figures.

28

FY 2023 Q2 - Consolidated PVA Tree (PVA Spread)
Consolidated
Top: Q2 / Dec. 2023 Results
Bottom: Q2 / Dec. 2022 Results

Cost of sales ratio
Operating profit ratio

ROIC before tax

ROIC

PVA
SpreadQ2 Results
LY Q2

Q2 Results
LY Q2

11.2%
9.0%

Q2 Results
LY Q2

16.0%
12.9%

Q2 Results
LY Q2

13.6%
11.3%

Q2 Results
LY Q2

51.5%
54.2%

SG&A expenses ratio
Q2 Results
LY Q2

35.0%
34.5%

Working capital ratio

6.2%
4.0%

Capital invested t/o

WACC

common 5.0%

Tax ratecommon 30.0%

Q2 Results
LY Q2

1.2
1.1

Q2 Results
LY Q2

27.0%
26.6%

Fixed asset ratio
Q2 Results
LY Q2

37.3%
36.2%

Cash and otherasset and liability ratio

Q2 Results
LY Q2©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

20.6%
24.7%

29

FY 2023 Q2 - Consolidated PVA Tree (Breakdown of CCC)
Consolidated

Top: Q2 / Dec. 2023 Results
Bottom: Q2 / Dec. 2022 Results(Unit : Million JPY)

(Unit : Days)

Working capital
Q2 Results 25,941
LY Q2 24,105Trade receivables
Q2 Results 16,560
LY Q2 17,084

Inventory asset
Q2 Results 16,079
LY Q2 13,632

Trade payables
Q2 Results 6,698
LY Q2 6,612©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

Q2 Results
LY Q2

CCC

Receivable turnover period
132.3
121.0

63.0

Q2 Results
LY Q2

68.8

Inventory turnover period
Q2 Results
LY Q2

118.8
101.4

Payables turnover period
Q2 Results
LY Q2

49.5
49.2

*B/S Factors for PVA calculation are averaged between beginning and year-end figures.

30

FY 2023 Q2 Results - E-commerce Sales Ratio in Key Markets[EC sales ratio of Pigeon / Lansinoh products]
73%

China - Pigeon*
58%

UK
39%

US
28%

India*
Singapore*Japan©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

12%
10%

*: Sell-out

Others: Sell-in

31

Purpose

Our reason for being and the role we should play in society

We want to make the world morebaby-friendly byfurthering our commitment
to understanding and addressing babies’
unique needs©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

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Key Issues for Pigeon over the Mid and Long-term (Materiality)

Enhancing Business
Competitiveness andResilience

Reducing ourEnvironmental Impact

Contributing to
the Resolution ofSocial Issues

Managing talent andCultivating the Right
Culture for our Purpose

Establishing solidmanagement foundations

Becoming essential tosociety by expanding ourcorporate value over the
medium to long term

Practicing eco-friendly
monozukuri and leaving
a rich earth for the
future of babies born
tomorrow

Helping to resolve thesocial issues that affectbabies and families

Cultivating anorganizational culture inwhich all employees canshine as they embrace
new challenges

Securing a structural basis forbold and ambitious endeavorsthat will improve medium- tolong-term corporate value

Supporting nursing babies

Reducing greenhouse gas
emissions (Scope 1, 2 & 3)

Supporting healthy babyskin development

Circular manufacturing

New products andservices for babies
needing support

Working environmentsthat achieveself-fulfillment and growth

Expanding use of
products designed formaternity hospitals

Ambitious
organizational culture

Creating new businesses
Releasing productsthat exceed
customer expectations

Using sustainable
resources(paper & palm oil)

Building resilient
distribution systems©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

Promoting responsible
procurement

Enriched investment
in human resource
development

Participating in andsupporting communities

PromotingDiversity & inclusion

Reinforcing
group governanceReinforcing complianceReinforcing
risk management
Dialogue withstakeholders

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8th MTP Themes and Key Strategy

For Sustainable Growth

Restructuring of business structure in response to global economic, political, and environmental changes

Key Strategy (deepening the ones of the 7th MTP)
Brand Strategy

Centered on “Purpose” for our business activities and strengthening brandpower through products

Product Strategy

Strengthen “Monozukuri”, focus on core categories (Nursing bottles and Skincares),and explore the “New areas”

Regional
Strategy・Strengthen autonomous business operation by each SBU.
・Implement the drastic structural reform to establish production and sales
systems tailored to market characteristics, improve efficiency and profitability,
stabilize the supply chain, and prepare for the expansion of the new markets.

©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

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Vision of a Baby-Friendly Future

Six specific faces of society
Babies are part ofeveryone’s everyday life
Loose, friendly ties facilitating
easy cooperation aroundraising children
Creativity from babies
brings excitement to society
No barriers toraising children
All babies are helped to develop
and grow, regardless ofthe conditions of their birth
A comfortable world
where babies are not troubled
by environmental risks

We formulated Vision of a Baby-Friendly Future by describing, in terms of six specific faces of society, the “baby-friendly” world envisaged in that
Purpose. In order to realize its Vision of a Baby-Friendly Future, Pigeon will move forward step by step, seeking to increase the number of people
in society who empathize with the vision and co-creating and taking action with a diverse range of stakeholders.
Vision of a Baby-Friendly Future website: https://www.pigeon.com/vision-of-a-baby-friendly-future/
35©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

The Pigeon Group seeks to maximize economic and social value through communications with all
stakeholders, including shareholders and other investors.
Please check our corporate website to understand our latest management strategies, businessresults and ESG activities.

Integrated Reporthttps://www.pigeon.com/ir/library/factbook/

Sustainability
https://www.pigeon.co.jp/sustainability/

ESG Data Book
https://www.pigeon.co.jp/sustainability/databook/©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

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