Summary of Results of
Fiscal Year ended January 2016

March 7, 2016

(Securities code: 7956)

President & COO

Shigeru Yamashita© All rights reserved by PIGEON Corporation

Contents

Title, Contents

1-2

Results of Term Ended Jan. 2016

3 - 18

Forecasts for Term Ending Jan. 201719 - 26

Approach to Enhance Corporate Value

27 - 36© All rights reserved by PIGEON Corporation

Results of Term Ended Jan. 2016

© All rights reserved by PIGEON Corporation

Financial Highlights (Consolidated)
Jan. 2015(¥ millions)

AmountYoY
ChangeJan. 2016
Forecast

Revised
Forecast

Amount% ofForecast% ofRevised
Forecast

YoY
ChangeNet sales

84,113 108.6% 92,000 95,500

92,209 100.2％

96.6％ 109.6%

Operatingincome12,780 123.3% 13,900 15,000

14,521 104.5％

96.8％ 113.6%

Ordinary
income13,299 120.9% 14,000 15,100

15,080 107.7％

99.9％ 113.4%

8,451 121.0%

9,600

10,197 114.6％ 106.2％ 120.7%

Net assets

47,297 118.3% 48,900 49,653

50,792 103.9％ 102.3% 107.4%

Total assets

72,367 124.9% 72,000 75,795

73,943 102.7%

Net income

74.31

97.6% 102.2%

80.16

85.15 114.6% 106.2% 120.7%

BPS (¥)

385.46 118.3% 408.75 404.65

413.88 101.3% 102.3% 107.4%

ROA*

20.4％

―

19.4% 20.4%

20.6%

―

―

―

ROE*

19.8％

―

19.0% 20.3%

21.3%

―

―

―

EPS (¥)

70.55 121.3%

8,900※ 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 Corporation3

Statements of Income (Consolidated)
Jan. 15

Jan. 16(¥ millions)
AmountNet sales
Cost of sales% of Total

Amount% of Total

YoY Change

84,113 100.0%

92,209 100.0% 109.6%

45,817

48,86454.5%

53.0% 106.7%

Gross profit

38,29645.5%

43,34547.0% 113.2%

SG&A expenses

25,51530.3%

28,823

31.3% 113.0%

OperatingincomeNon-operating
income(expenses)

Ordinary
incomeExtraordinary
income (loss)
Less: Minority Interest in
Net Income ofConsolidated
Subsidiaries

Net income© All rights reserved by PIGEON Corporation

12,780
518

15.2%
0.6%

14,521
559

Remarks

15.7% 113.6%
0.7% 107.9%

13,29915.8%

15,08016.4% 113.4%

▲159

▲0.2%

▲193 ▲0.2%

185

0.2%

265

0.3% 143.5%

8,451

10.1%

10,197

11.1% 120.7%―■ Main changes in SG&A
expenses
Personal expenses:+ ¥896m
Sales Promotion expenses:+ ¥396m
Advertising expenses:+ ¥266m■ Main changes in
non-operating income(expenses)
Balance of financial
expenses:+¥56m

4

Net Sales by Business Segment (Consolidated)
Jan. 15(¥ millions)Jan. 16
YoY
ChangeAmount % of Total

Gross
MarginSegment
ProfitAmountConsolidated
net sales

84,113 100.0%

45.5%

12,78092,209100.0% 109.6% 47.0% 14,521

Domestic
Baby andMother Care
Business

24,432

29.0%

46.0%

3,752

28,053

30.4% 114.8% 44.4%

4,383

Child-rearing
SupportServices

6,722

8.0%

11.2%

189

6,757

7.3% 100.5% 10.7%

148

Health Careand Nursing
Care
Business

6,761

8.0%

28.7%

260

6,499

7.0%

96.1% 28.3%

140

Overseas
Business

23,373

27.8%

53.7%

4,969

25,234

27.4% 108.0% 55.4%

5,579

China
Business

26,301

31.3%

43.7%

7,525

31,68834.4% 120.5% 44.6%

8,586

―

▲7,306

▲7.9%

―

―

―

1,283

1.4%

100.6%

15.4%

Elimination ofinternal trading
betweensegments▲4,754 ▲5.6%

Other

1,276

1.5%

―
16.6%

173

% of
Total

Gross
MarginSegment
Profit152※ Segment profit in the consolidated amount has been adjusted (all non-allocable operating expenses) and posted as operating income in the consolidated statements of income.
※ The consolidated amount recorded has been posted as the sum resulted from eliminating intersegment transactions in the overseas and China businesses.
© All rights reserved by PIGEON Corporation5

＜Ref.＞ Results by Business Segment(Consolidated: prior to sales channels transfer)
Jan. 15(¥ millions)Jan. 16

Gross
MarginSegment
ProfitOverseas
Business

23,373 27.8% 53.7%

4,969

China
Business

26,301 31.3% 43.7%

Amount% of
Total

Elimination ofinternal trading▲4,754 ▲5.6%
betweensegments―

YoY
ChangeGross
MarginSegment
Profit25,234 27.4%

108.0% 55.4%

5,579

7,525

31,688 34.4%

120.5% 44.6%

8,586

―

▲7,306 ▲7.9%

% of
Total

Amount―――Prior to sales channels transfer(Overseas Business includes
Korea, Hong Kong, Taiwan etc)

Jan. 15(¥ millions)Jan. 16

Amount

% of
Total

Gross
MarginSegment
ProfitAmount

% of
Total

YoY
ChangeOverseas
Business

23,373

27.8%

53.7%

4,969

27,291

29.6%

116.8% 54.2%

5,939

China
Business

26,301

31.3%

43.7%

7,525

27,95130.3%

106.3% 48.0%

8,308

Elimination ofinternal trading▲4,754
betweensegments

▲5.6%

―

―

▲5,627 ▲6.1%© All rights reserved by PIGEON Corporation

―

Gross
Margin―Segment
Profit―6

＜Ref.＞ Results by Business Segment(Consolidated: prior to sales channels transfer)
Difference in Sales
from Jan. 2014(¥ millions)© All rights reserved by PIGEON Corporation

Difference in Gross
Profit from Jan. 2014(¥ millions)Difference in Segment
Profit from Jan. 2014(¥ millions)7Overseas Business Sales by Region
China(incl.Hong Kong)

Other Asian Countries

North America

EuropeNear and Middle East

Other Regions(Mil. JPY)

Local currency basis: 95.8％

2,684

Jan-16

7,326

28,291

49,579

7,671
2,400

1,205

Local currency basis: 105.1％

2,262

Jan-15

26,38444,9006,800 6,376
2,090 986

0

10,00020,00030,00040,00050,000※ [Currency rates] Jan. 2016: US$1 = ¥121.10, 1 yuan = ¥19.22; Jan 2015:US$1 = ¥105.78, 1 yuan = ¥17.17© All rights reserved by PIGEON Corporation

8

Key Priorities for Year to Jan. 2016
 Domestic Baby and Mother Care Business Reliable growth of large merchandise by launching new competitive products
 Enhancement of brand loyalty through strategic PR measures and others
 Strengthening of our approach to maternity care and sales expansion in women's care
category

 Child-rearing Support Services
 Review of growth strategies and business system to raise profitability
 Maintenance and improvement of business quality through fostering and education ofhuman resources engaged in child-rearing
 Health Care and Nursing Care Business Reinforcement of our sales capacities focused on facility routes and strengthening of
joint efforts with our sales representatives
 Improvement in gross profit margin by launching new competitive products© All rights reserved by PIGEON Corporation

9

Key Priorities for Year to Jan. 2016
 China Business Building of a business management system including our Korean subsidiary Sales policy review in line with business expansion
 Steady growth in the disposable diapers business based on our commitment tosecure gains

 Overseas Business (Other than China) Growth centered on five key categories (nursing bottles and nipples, breast
pumps, skin care products, breast pads, and pacifiers) Europe and America:
Sales expansion of our core products - nursing bottles and nipples
Expansion of selling functions in areas of Central and South America bychanging the commercial distribution
Business expansion and system maintenance in Europe Asia: Review of business operation system (sales, marketing, SCM system
rebuilding) and improvement of operating results in Singapore
Raise in earnings by starting operations at a new factory in India
 New markets:
Continuation of activities paving the way for advancement
into the Brazilian market© All rights reserved by PIGEON Corporation

10

Domestic Baby and Mother Care Business Status
 Large merchandise"Premige" premium baby stroller launched
Press conference held in December at the Tokyo Station Hotel(48 media agencies, 73 participants)

 New products
"HAJIMETE no Mask" 7 sanitary mask pack,"UV Baby Milk Waterproof Sunscreen SPF50+" renewed"Baby wipes with a soft thick texture," "Pigeon Vaseline," etc.

Premige Promotion activities


Information meetings in maternity and general hospitals for health care professionals:
108 events/124 times/1,635 participantsMarket Share (January 2016)
76%
35%
No. 1

Press conference on December 2, 2015
67%

45%
No. 1

30%

No. 1
No. 1

No. 1

Talk session with Yoshino Kimura© All rights reserved by PIGEON Corporation

Touch & Try corner* According to POS Nationwide Drugstore Growth Estimates, INTAGE Inc. (monthly data).
* Value share for nursing bottles and breast pads. Quantity share of other products.

11

Child-rearing Support Services /Health Care and Nursing Care Business Status
Child-rearing Support Services
 Pigeon Hearts[New additions of facilities managed] Five child-care facilities in-company establishments→ Total 189 facilities (including those of the National Hospital Organization)[Preschool educational facilities]
Kids World yoga classes opened

Health Care and Nursing Care Business Pigeon Tahira
Effects of the drop in consumer spending through facility routes due to the impact of reducing
compensation for nursing insurance in April
Sales of renewed products "Kaori Kakumei" pinpoint/indoor air fresheners performed strong(up 142% YoY)

 Pigeon Manaka

Sano Day-Service Center was opened

Kids World yoga classes opened in June
© All rights reserved by PIGEON Corporation"Kaori Kakumei" pinpoint/indoor
air fresheners

Opening ceremony of Pigeon Manaka
Sano Day-Service Center

12

Overseas Business Status
 Europe and AmericaNorth America: The largest share was maintained in the market of nipple care cream, breast pads
and breast milk storage bags.
Manual breast pumps ranked No. 1 in the market share.
Europe:Sales increased in 3 main countries.
(Sales increase from Jan. 2014 (local currency): England 107%, Germany 124%,
Turkey 140%)
Construction of a new factory in Turkey (to be completed in January 2017)

 Asia:India:

Nursing bottle and nipple production and shipment started at the new factory from May.
Target stores for distribution: 7,401 (FY2014) → 10,194 (FY2015) (up 138% YoY)
Singapore: High-class baby skincare product "Newborn Pure" launched.
Market Share (January 2016)

75.2%

U.S.

76.9%

67.8%

63.4%

54.3%
No. 1

50.6%
33.4%

No. 1

Germany

No. 1

No. 1

No. 1

29.8%

No. 1
No. 1

No. 2

Singapore new lineup over-the-countertrading status© All rights reserved by PIGEON Corporation* Lasinoh search & value share

13

China Business Status About Product Sales
Strong consumer purchasing of our main products such as nursing bottles and nipples
Purchase location has changed significantly from OTC → EC (including inbound consumption in
Japan).
 Skincare: Launch of new baby skincare series
 Disposable diapers: Enhanced sales results by conducting over-the-counter rounds(door-to-door campaigns)
 Branding and Breastfeeding Awareness Programs

Deployment of the newly designed Pigeon Corners to strengthen our brand activities further
Our awareness program related to caring for breastfed infants conducted jointly with China's Ministry of
Health is continually being implemented.
⇒ Establishment of breastfeeding consultation offices, seminars for health care professionals, etc.

Event to announce launch of the new
baby skincare series© All rights reserved by PIGEON Corporation

New Pigeon CornerWorkshop for health care
professionals at maternity- andgeneral-hospitals
14

<Ref.>Consolidated Balance Sheet (Highlights)
Jan. 2015

Jul. 2016(¥ millions)

AmountAmountYoY Change(Amount)

YoY Change(%)

Cash and deposits

21,59024,297+2,706112.5%

Notes and accounts
receivable

15,27813,870▲1,407

90.8%

Inventories

8,498

8,859

+360

104.2%

Notes and accounts
payable

4,462

3,743

▲719

83.9%

Borrowings

8,018

6,308

▲1,70978.7%

Net assets

47,29750,792+3,495107.4%

Total assets

72,36773,943+1,576102.2%

Equity ratio

63.8%

67.0%

－

＋3.2 pt© All rights reserved by PIGEON Corporation

15

<Ref.>Cash Flow(¥ millions)
13,479 ▲3,332▲6,567▲873
10,135 ▲3,134▲150

13,102

1,637

21,59024,297

21,590Acquisition of PPE: ¥(3,018m)（Jan.2015 ¥(2,682))

Income before income taxes: ¥14,887m（Jan.2015 ¥13,140m）

Loan income/repayments: ¥(1,705m)（Jul. ¥4,385m）
Payment of cash dividends: ¥(4,789m)（Jan.2015 ¥(3,995m))

JJan-2015'１5/1期 （58期）'１6/1期（59期）
Jan-2016

期首残高 営業活動 投資活動 財務活動 換算差額 期末残高

期首残高 営業活動 投資活動 財務活動 換算差額 期末残高

13,102

21,590

10,135 ▲ 3,134© All rights reserved by PIGEON Corporation

▲ 150

1,637

21,59013,479 ▲ 3,332 ▲ 6,567▲ 873

24,29716

<Ref.>Investment-Related Indicators (Consolidated)

Jan. 2015

Jan. 2016(¥ millions)Interim(Results)

Full Year(Results)

Interim(Results)

Full Year(Result)

Capital investment ※1

1,672

3,204

1,610

2,639

Depreciation(tangible fixed assets)

780

1,705

1,018

2,133

Research and development

938

1,932

1,181

2,263

※2
※1 Refers to purchase of tangible fixed assets.

※2 Refers to total R&D expenditures, including personnel-related.

© All rights reserved by PIGEON Corporation17

Forecasts for Term Ending Jan. 2017

© All rights reserved by PIGEON Corporation

Jan. 2016 Results and Jan. 2017 Forecast (Consolidated)
Jan. 2016(¥ millions)

AmountJan. 2017% of Total

YoY
ChangeForecast% of Total

YoY
ChangeNet sales

92,209100.0％

109.6%

95,000100.0%

103.0%

Operatingincome14,521

15.7％

113.6%

15,00015.8%

103.3%

Ordinary
income15,08016.4％

113.4%

15,30016.1%

101.5%Net income

10,19711.1％

120.7%

10,40010.9%

102.0%Net assets

50,792―

107.4%

51,668－101.7%

Total assets

73,943―102.2%

79,300－107.2%EPS (¥)

85.15―

120.7%

86.84－

102.0%BPS (¥)

413.88―107.4%

419.86－101.4%

ROA

20.6%

―

―

20.0％

－

－

ROE

21.3%

―

―

21.0％

－

－

※ 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

19

Results and Forecast by Segment (Consolidated)
Jan. 2016 (Results)(¥ millions)

Gross
MarginJan. 2017 (Change of Forecast)Amount% ofTotal

Consolidated
net sales

92,209100.0%

47.0% 14,521

95,000 100.0% 103.0% 47.5% 15,000

Domestic
Baby andMother Care
Business

28,053

30.4%

44.4%

4,383

29,501

31.1% 105.2% 44.2%

4,434Child-rearing
SupportServices

6,757

7.3%

10.7%

148

6,911

7.3% 102.3% 10.9%

177

Health Careand Nursing
Care
Business

6,499

7.0%

28.3%

140

7,000

7.4% 107.7% 31.3%

400

Overseas
Business

25,234

27.4%

55.4%

5,579

25,429

26.8% 100.8% 54.3%

5,348

China
Business

31,688

34.4%

44.6%

8,586

32,51834.2% 102.6% 47.2%

9,444

Elimination ofinternal trading
betweensegments▲7,306

▲7.9%

―

―

▲7,360 ▲7.9%

Other

1,283

1.4%

15.4%

Segment
Profit152

Amount

1,000

% of
Total

1.1%

YoY
Change―Gross
MarginSegment
Profit

―77.9% 15.1%―

159※ Segment profit in the consolidated amount has been adjusted (all non-allocable operating expenses) and posted as operating income in the consolidated
statements of income.
© All rights reserved by PIGEON Corporation20

Forecast of Overseas Business Sales by Region
China(incl.Hong Kong)

Other Asian Countries

North America

EuropeNear and Middle East

Other Regions

Local currency basis:111.1％(¥ millions)
2,780

Jan-1729,098

7,353

7,708

50,5872,426 1,219
Local currency basis:105.8％

2,684

Jan-1628,291

7,326

49,5797,671
2,400 1,205

0

10,00020,00030,00040,00050,000※ [Assumed rates] Jan. 2017: US$1 = ¥115.00; 1 yuan = ¥17.80[Actual rates] Jan. 2016: US$1 = ¥121.10; 1 yuan = ¥19.22© All rights reserved by PIGEON Corporation

21

Key Priorities for Year to Jan. 2017
 Domestic Baby and Mother Care BusinessBusiness expansion and enhanced market share through aggressive sales of large merchandise,such as baby strollers, and marketing activities
Further enhancement of profitability by launching and expanding sales of high value-added
products such as the latest nursing bottles and nipples, etc.

 Child-rearing Support Services


Review of growth strategies and business system to raise profitability
Maintenance and improvement of business quality through fostering and education of humanresources engaged in child-rearing, crisis management; as well as, further enhancement ofour crisis management plan

 Health Care and Nursing Care Business
Sales expansion and business growth by strengthening joint efforts with our sales representatives
Improvement of profitability by increasing the efficiency of our business operation system© All rights reserved by PIGEON Corporation

22

Key Priorities for Year to Jan. 2017
 Overseas Business (except China)Growth centered on five key categories (nursing bottles and nipples, breast pumps, skin care products,
breast pads, and pacifiers)
Improvement of profitability by promoting parts in-house production and investing in facilities for thispurposeLasinoh・Sales expansion of the Group's core products―nursing bottles and nipples
・Establishment of local subsidiaries and full-scale entry into the Chinese market
・Maintenance and reinforcement of our production system by opening a new factory in Turkey
・Business expansion and system maintenance & reinforcement in Europe
Asia
・Continuation and reinforcement of our branding activities, and business expansion(profit on a single fiscal-year basis) in India
・Raise in earnings by improving performance of our new factory in India, including start ofexports and production
・ Reinforcement of marketing activities in Asia focused on Pigeon Singapore

India© All rights reserved by PIGEON Corporation

Middle East

Singapore

EnglandTurkey23

Key Priorities for Year to Jan. 2017
 China Business

Sustained growth trend (local currency basis: 111%) and further increase in profitability
Reinforcement of strategies and measures (sales promotion) to meet the boom in electronic commerce
sales (start of EC sales of Japanese products)
Increased sales of disposable diapers by maintaining and further expanding over-the-counter rounds(door-to-door campaigns)
Pigeon's flagship store on EC sites© All rights reserved by PIGEON Corporation

Stores offering over-the-counter rounds(door-to-door campaigns)

24

Shareholder Return and Investment-Related Indicators[Shareholder return indicator under our 5th Medium-Term Business Plan]
Adopt flexible approach to upgrading shareholder return (incl. through share buybacks), aiming at
a goal of increasing dividends compared with the previous term and of the total shareholder return
ratio by approximately 45 to 50% in each business term.
Jan. 2014

Cash Dividends

Dividend per share(¥)
Payout ratio

Jan. 2015

Jan. 2016

Jan. 2017

InterimYear-EndInterimYear-EndInterimYear-EndInterimYear-End(Results)(Results)(Results)(Results)(Results)(Plan)(Forecast)(Forecast)（11） （18.3） （15）

（20）

20

22

22

22

66

55

45

50.4%

60

49.6%

49.3%

50.7%

※ Our Group carried out a 2-for-1 stock split with respect to its common stock, effective as of August 1, 2013.Also carried out a 3-for-1 stock split with respect to its
common stock, effective as of May 1, 2015. The values given in the parentheses for dividend per share above are reference values converted based on the numberof shares after the stock split.

Reference: Investment-Related Indicators
Jan. 2015

Jan. 2016

Jan. 2017

InterimYear-EndInterimYear-EndYear-End(Results)(Results)(Results)(Results)(Forecast)

Capital expenditures ※1,672 3,204 1,610 2,639 3,722

Depreciation(tangible fixed assets)

780 1,705 1,018 2,133 2,487※ Refers to the amount accounted for purchasing of tangible fixed assets.

© All rights reserved by PIGEON Corporation25

Approach to Enhance Corporate
Value© All rights reserved by PIGEON Corporation

12 Tasks to achieve “World-Class Business Excellence”
Globalinformation
systemGlobal sharingof corporate
philosophy &valuesWorld-classbrand power

Sustainable growth
Logical work
process

Salaryincrease

Global humanresource
development© All rights reserved by PIGEON Corporation

World class Business
Excellence
Nurture employees’ motivation,satisfaction, confidence, sense of
pride and belonging to the company

Diversity/
women inmanagement

Global SCM

TechnologicalcompetitivenessBusinessmodel forsuccess

Cash flow
management（PVA）

Global cash
management
27

PVA Tree: Consolidated Results in the 59th Term
全社連結/Consolidated
上：59期計画/Plan
中：59期実績/Results
下：58期実績/Last Year
単位：百万円/Unit: M JPY

営業利益/O.P

NOPATPlan 8,242

Result 8,611
L Y 7,578

売上高/Sales

Plan 13,900

Plan 92,000

Result 14,522

Result 92,210

L Y 12,780

L Y 84,113

税金/TAX

売上原価/COGS

Plan 5,657

Plan 49,900

Result 5,910

Result 48,865

L Y 5,201

PVA
Plan

5,584

LY

4,812

Result5,756

投下資本
Invested Cap.

運転資本
Working Cap.

売上債権
A.Receivable

販管費/SGA

Plan 53,153

Plan 16,500

Plan 14,700

Plan 28,200

Result 57,102
L Y 55,315

Result 17,364
L Y 18,097

Common5.0%

L Y 15,278

棚卸資産
Inventory

Plan 27,569

Plan 9,000

L Y 25,339

WACC

Result 13,871

固定資産
Fixed Assets
Result 25,029© All rights reserved by PIGEON Corporation

L Y 45,817

Result 8,859
L Y 8,498

現金他資産･負債
Other Assets

仕入債務
A.Payable

Plan 9,084

Plan 7,200

Result 14,708
L Y 11,877

Result 5,366
L Y 5,679

Result 28,823
L Y 25,515

（参考）

研究開発費
見込 0

前期 1,932

発送費
見込 0

前期 2,475

28

PVA (Ratio): Consolidated Results in the 59th Term
全社連結/Consolidated
上：59期計画/Plan
中：59期実績/Results
下：58期実績/Last Year

税前ROICROIC Bef. TAXROICPVAスプレッド
PVA spread
Plan

ResultLast Year

Plan

15.5%

Last Year

13.7%

Result 15.1%

Plan

26.2%

Last Year

23.1%

Result 25.4%

営業利益率
OP rate
Plan

15.1%

Last Year

15.2%

Result 15.7%

原価率
COGS rate

Plan

54.2%

Last Year

54.5%

Result 53.0%
販管費率
SGA rate

Plan

30.7%

Last Year

30.3%

Result 31.3%
運転資本比率Work.Cap.ratio

10.5%
10.1%
8.7%

税率
TAX rate

WACC
Common 5.0%

Common 40.7%

投下資本回転率
Invested Cap. T/O

Plan

ResultLast Year

1.7

1.6
1.5

Plan

17.9%

Last Year

21.5%

Result 18.8%
固定資産比率Fixed Assets ratio

Plan

30.0%

Last Year

30.1%

Result 27.1%
現金他資産・負債比率
Other Assets ratio

Plan

9.9%

Last Year

14.1%

Result 16.0%© All rights reserved by PIGEON Corporation

29

CCC Tree: Consolidated Results in the 59th Term
全社連結/Consolidated
上：59期計画/Plan
中：59期実績/Results
下：58期実績/Last Year
単位：百万円/Unit: M JPY

運転資本Working Cap.
Plan 16,500

RES 17,364
L Y 18,097

売上債権
A.Receivable
Plan 14,700

Plan

L Y 15,278

LY

RES 13,871

棚卸資産
Inventory

RES

売上債権回転日数/DSO
72.0
81.0
88.8

Plan

RES

LY

58.0
54.9
66.3

棚卸資産回転日数/DIO

Plan 9,000

Plan

L Y 8,498

LY

仕入債務
A.Payable

仕入債務回転日数/DPO

RES 8,859

RES

Plan 7,200

Plan

L Y 5,679

LY

RES 5,366© All rights reserved by PIGEON Corporation

CCC

RES

66.0
66.2
67.7

53.0
40.1
45.2

30

Breastfeeding Room around the World
RussiaJapan（Pigeon HQ）

China
Public space（Airport, Station,
Department store）© All rights reserved by PIGEON Corporation

Breastfeeding room
in officeBreastfeeding roomin baby shop

31

Breastfeeding Room around the World
Singapore

MexicoCity hall in Mexico cityThailand© All rights reserved by PIGEON Corporation

Malaysia

32

Breastfeeding Room around the World
Eg. Breastfeeding Room in
Washington DC, U.S.

© All rights reserved by PIGEON Corporation

33

Tokyo Stock Exchange's Corporate Value
Improvement Awards

The

Grand Prix
3 companies
selected as finalists
50 companies selected
for 2nd stage
400 companies selected for1st stage

Pigeon has won the Grand Prix in
the Tokyo Stock Exchange's
Corporate Value Improvement
Awards in the companies listed on
the TSE (approximately 3,500
companies)

The companies listed on the TSE(approximately 3,500 companies)© All rights reserved by PIGEON Corporation

34

What Makes Corporate Value?

Social Value

Economical Value

We should be the company thatbrings joy and happiness to people
and that the society needs, byproviding solutions and new values
to our customers.

We should continue to increase
free cash flow in an efficient andstrategic way.
(Corporate Value = Aggregation ofPresent Value of Future Cash Flow)

What makes it possible:

What makes it possible: Corporate identity, mission, value, action
principle and vision shared across thecompany
 Company that provides job satisfaction toemployees
 Development power, marketing power andbrand power
 Innovation power Influence on and contribution to society

 Style of work that is simple, but is hard to copy
(enduring competitive advantage)
 Corporate governance Efficient investment recovery
 Improvement of ROE, ROIC, CCC, PVA andvarious KPI (management quality) Global cash management
 Withdrawal from unprofitable business

Achieve the two values： Management

Enhance the two values： Engagement

Continuously achieve and enhance the two values： Governance© All rights reserved by PIGEON Corporation

35

Corporate Overview
PIGEON CORPORATIONHead office
4-4, Nihonbashi-Hisamatsucho, Chuo-ku, Tokyo
103-8480, 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-looking
statements.
Due to various factors, actual results may differ significantly from those anticipated inthis document.

© All rights reserved by PIGEON Corporation

38