Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

Summary of the Results Briefing for the FY December 31, 2023

Note: This Summary is a reference for those who would like to review the session or event of theresults briefing held by Pigeon Corporation. Please note this is not the entire text of the conference
but a summary based on our judgment. Forward-looking statements in these materials are basedon management's assumptions and beliefs in light of the information currently available to it andinvolve known and unknown risks, uncertainties and other factors. Such risks, uncertainties andother factors may affect the Company's performance. In the event of discrepancy between the
English version and the Japanese version of the summaries, the Japanese-language version shallprevail.

[Date & Time] Thursday, February 15, 2024, 4:00 p.m. start[Location] Nomura Conference Plaza Nihonbashi and webcast[Speakers] 5 speakers
Norimasa Kitazawa

President and CEO

Tadashi Itakura

Director, Senior Managing Executive Officer

Kevin Vyse-Peacock

Director, Executive Officer

Ryo Yano

Director, Executive Officer

Zenzo Yamaguchi

Senior Managing Officer

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

Kitazawa: Thank you for taking time out of your busy schedule today to participate in ourearnings presentation.

For the full year, group sales fell slightly below the previous year's level at 94.4 billion yen, or

99.5% of the previous year's level. Gross profit grew to 49.0 billion yen, or 101.4% yoy, and thegross margin improved by about 1 pt. On the other hand, operating income ended at 10.7

billion yen, or 87.9% yoy, partly due to the aggressive use of SG&A expenses associated withthe reopening from the Covid-19.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

Next, by business.
The Japan business and Lansinoh business posted yoy sales and profit growth. Sales in theJapan business grew 101.5% yoy, the first full-year yoy growth in several years. Among them,sales of baby care products were strong at 103.8% yoy. Sales in the Lansinoh business werealso strong at 109.2% yoy.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

The main reason for the yoy decline in operating income was the aggressive use of SG&A
expenses associated with the reopening from the COVID-19.

While gross profit decreased due to lower sales, gross profit increased from the previous year
due to an improvement in the gross margin. However, personnel expenses and marketing-related expenses increased among SG&A expenses. Marketing-related expenses increased dueto the resumption of sales promotion activities in various countries after the Covid-19 disaster,and travel expenses also increased due to the resumption of employee travel and businesstrips throughout the group.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

Here is the Consolidated BS. Compared to the end of the previous period, cash and deposits
increased slightly, but this was largely due to foreign exchange effects. Excluding foreignexchange effects, cash and deposits decreased by about 1.2 billion yen.

In addition, we were able to reduce inventories by about 1.7 billion yen. Excluding foreignexchange effects, inventories decreased by approximately 2.4 billion yen, and we think thispart of the decrease is good for us.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

Let me explain the situation by business segment. First, let's look at the Japan business.
The Japan business ended the year with increased sales and profits. In the baby care business,

price revisions for nursing bottles and other products absorbed cost increases and contributed
significantly to improved profitability, and sales of nursing bottles and nipples and skin care,core products, grew yoy. In addition, sales of wet wipes and other products were alsofavorable.

In the baby care business, the electric nasal aspirator launched in August sold well andcontributed significantly to earnings. In addition, sales of products exceeding 10,000 yen, suchas nursing bottle steam sterilizers and dryers, increased, contributing to the recovery of baby

care business performance.

As for inbound, inbound demand declined significantly, especially through the second half ofthe fiscal year, due in part to the impact of ALPS treated water.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

The China business ended the year with lower sales and profits.
Mainland China was not bad through the third quarter, but slowed down significantly in the
fourth quarter. The fourth quarter alone was significantly impacted by ALPS treated water,
resulting in sales of -43% from the previous quarter.

By product category, nursing bottles and nipples performed well, growing 11% yoy. On theother hand, baby skin care products, represented by the Momo-no-ha(peach leaves) series,

which also have a strong image of being made in Japan, were significantly affected by ALPS

treated water, and sales fell by -20% yoy. In addition to a decrease in brand exposure due tothe fact that leading Key Opinion Leaders(KOLs) avoided working with Japanese brands andthe suspension of various sales promotion activities, customers were also reluctant to buy

Japanese brands, resulting in a significant decline in sales.

In addition, sales of Age-Up products, which are beginning to be developed as a "new area,"

are increasing.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

E-commerce sales accounted for 72% of total sales, with sales through emerging channels

such as Pinduoduo and Tiktok growing.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

The Singapore business ended the year with lower sales and profits.
In the major Southeast Asian countries under this business, distributors, retailers, and other

distributors resumed aggressive product purchases after the Covid-19 disaster in 2022, but themarket recovery was slower than expected, resulting in excess distribution inventory, and we
focused on reducing distribution inventory in 2023. With the implementation of measures toincrease sellout, we expect that major countries will return to almost normal distribution
inventory levels by the end of the first quarter of 2024.

As for the "new areas" that the Singapore business is tackling, a local subsidiary wasestablished in Kenya last December, and preparations are underway to capture the African
market in the future.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

The Lansinoh business ended the year with increased revenues and profits.
The Lansinoh business has been growing at a CAGR of more than 5% over the past five years,
making it one of the most stable businesses in the Covid-19 disaster. In particular, sales ofnursing bottles and nipples grew this fiscal year to account for more than 7% of Lansinoh's
total sales.

In addition, sales of prenatal and postpartum care, which is being developed as a "new area,"grew by more than 70% over the previous year and accounted for more than 6% of Lansinoh
business sales.

Ocean freight rates, which soared sharply after the Covid-19 disaster, are returning to levels
similar to those before the Covid-19 disaster, which has also led to improved profitability.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

ESG/Sustainability.
Our ESG and sustainability initiatives and the progress we have made in disclosing thisinformation have resulted in our ESG rating by MSCI rising from BBB to AA.

In addition, our "Lesson for Learning About Babies" classes for junior high school students inJapan received the Encouragement Award from the Ministry of Education, Culture, Sports,

Science and Technology in its "Award for Companies Promoting Hands-on Activities for Youth"
program. We consider this an important activity in terms of enhancing our company's future

brand value.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

This is the result of the efforts of the 8th Mid-Term Management Plan, of which the fiscal year

December 2023 is the first year. On the quantitative side, the group as a whole finished below

expectations, but the performance of the Japan and Lansinoh businesses progressed as

expected. On the qualitative side, activities based on the basic strategy are yielding results ineach business.

First, with regard to brand strategy, we have conducted workshops on our Baby-Friendly
Future Vision Workshop at all of our group locations. By enhancing our internal branding

activities, we have further increased the empathy of our group employees for our purpose. In

addition, we have been selected as one of the Best Japan Brands for four consecutive years.

In terms of product strategy, sales of nursing bottles and nipples, our core products, increased
for the entire group. In addition, the development of new areas such as childcare appliances,age-enhancing products, and women's care products is progressing steadily as expected. In

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

the first year of the medium-term management plan, sales in new areas grew to more than 3billion yen.

With regard to regional strategies, the establishment of a local subsidiary in Kenya under theSingapore business and the improvement of profitability in the Japan business through theimplementation of product price revisions were among the results of our efforts.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

This is the forecast for the fiscal year ending December 31, 2024.
Sales are projected at 101.0 billion yen (106.9% yoy), operating income at 11.4 billion yen(106.3% yoy), and operating margin at 11.3%. This year, the operating income margin is

expected to be 0.1 pt lower than the previous year, as we will place the highest priority on sales

recovery in the China business and make drastic investments in sales promotion expenses.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

The following is the forecast of business performance by business segment for the fiscal year
ending December 31, 2024.

Sales of the Japan business are 98.8% below the previous year's level, but this is due to the
expected decrease in sales resulting from the transfer of shares in Pigeon Manaka, aconsolidated subsidiary of the Company. Our sales target for the baby care business within ourJapan operations is 101.4% yoy.

In China, we plan to achieve 14.1% growth over the previous year. In addition, the Singapore

business is expected to recover along with the optimization of distribution inventories, and weare targeting 7% growth over the previous year. The Lansinoh business has continued to groweven amid the Covid-19 disaster, and we plan to continue to expand this business in the fiscal
year ending December 31, 2024.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

Business strategies for each business for the fiscal year ending December 31, 2024.
As for the Japan business, inbound demand has not been factored in at all this fiscal year.
To build on our dominant No. 1 position in the existing areas of nursing bottles and nipples

and baby skin care, we launched a new product, "My Bonyujikkan" Japan's first nursing bottle

that can be customized in 150 ways, in January. This nursing bottle, which allows customers tofreely change the color and design combination according to their preferences, has been

extremely well received. We are thinking of developing customized nursing bottles not only inJapan, but also in China and Southeast Asia.

In addition, construction of the Fuji Plant was completed last year, and the first new productfrom the new plant, "Moisture Mist Emulsion," will be launched in February.

And besides, childcare appliances are performing well in the Japanese baby care category, andwe plan to launch new products to further strengthen this category. In addition, we willcontinue to strengthen the development of Age-Up products and enhance our e-commerce.
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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

Next is the China business.
As the number of births in mainland China continues to decline, we aim to achieve sustainablegrowth by strengthening manufacturing and increasing the unit price of products in existingareas, and by fostering age-appropriate products in new areas.

We believe that the impact of ALPS treated water was most significant in the fourth quarter oflast year, and while we do not expect it to be zero in 2024, we do not expect it to be as
significant as it was in 2023.

In existing areas, we will continue to aggressively expand sales of nursing bottles, nipples, andskin care products. We aim to achieve a 50% market share for nursing bottles as soon as
possible.

As for new areas, the natural weaning series launched in June 2023 had limited production

capacity, but from 2024 we will be able to produce the series at full capacity, which we expect
will lead to significant growth. We also plan to expand our lineup of Age-Up related products.

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We would like to strengthen our sales force and communication efforts by increasing our sales

promotion on Redbook, along with Tiktok and Pinduoduo, which are experiencing remarkable
growth.

As I mentioned earlier in the Group's consolidated earnings forecast for 2024, this year we willthoroughly invest in growth areas in order to recover our business in mainland China. The

main use will be in e-commerce, which accounts for more than 70% of our sales, and we will

utilize KOLs in new ways that we were unable to do last year. We will also further expand ourvideo and other content to further increase the exposure of our brand online and achieve arecovery in sales and market share.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

In the Singapore business, there is no change in the strategy set forth in the 8th MTP, and wewill continue to promote sales of wide neck nursing bottle and nurture the skin care category.
We expect to be able to grow both sell-in and sell-out at the same level.

As for new areas, we plan to introduce Age-Up products, such as the Natural Weaning Series

sold in mainland China, in the key countries of our Singapore operations. We also plan to start
selling Pigeon products in Kenya, a new market, during 2024.

As for the organization of the Singapore business, the executive officer who has been in chargeof the development headquarters based in Japan will be assigned to the Singapore businessheadquarters to strengthen product development in the area under the jurisdiction of theSingapore business.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

Lansinoh Business.
First, we will continue to maintain the No. 1 position for our mainstay products. As for thewearable breast pumps launched last year, we will launch additional new models with lower

prices through the DME(Durable Medical Equipment) channel in 2024 to further increase ourmarket share.

We expect continued growth in prenatal and postpartum care by adding even more new

products. As for D2C(Direct-to-Consumer), the scale of sales itself is still small, but we intend tostrengthen it where we can in order to reduce the risk of dependence on major retailers and tofurther improve our customers' purchasing experience.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

The forecast for the fiscal year ending December 31, 2024 is as explained earlier.
We aim to improve not only sales and profits, but also key indicators such as ROE and ROIC.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

Regarding the year-end dividend, the Company plans to pay 38 yen per share, unchanged fromthe announcement at the beginning of the fiscal year.

As for next year's dividend, although it is a forecast at this time, we have set the interim andyear-end dividend per share at 38 yen each, the same amount as in 2023.
This concludes the explanation.

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

Question and answer session*Questions and answers are listed by business segment.

 Questions regarding the performance for the year ending December 31, 2023
and activities in the first year of the medium-term management plan

Whole

Q. Please tell us about the progress of "new areas," the theme of the 8th Mid-TermBusiness Plan.

A. "Exploring and cultivating new areas" is performing better than initially expected. The
combined sales of prenatal and postpartum care led by the Lansinoh business, Age-Up

products in China (kids skin care, natural weaning series of nursing bottles), and childcare

appliances in Japan grew to over 3 billion yen in 2023 alone, and the company plans to further

expand products in new areas in each business in 2024 and beyond.

Q. In light of the cash position and dividend payout ratio at the end of the current fiscal
year, as well as the recent share price trends, have there been any internal discussions
regarding capital policy and shareholder returns?

A. Such discussions are frequently held at Board of Directors meetings. For example,

discussions are held on an ongoing basis regarding the methods and expected effects ofmeasures to return profits other than dividends. In addition, the company is consideringvarious measures for sustainable growth, both in existing and new areas, and will makeeffective use of cash and cash equivalents when implementing these measures.
Japan Business

Q. What factors contributed to the deterioration in the gross margin of Baby Care in
Japan in the fourth quarter alone?

A. Deterioration in the product mix, mainly due to the impact of ALPS-treated water, which led
to a significant drop in overseas demand (mainly for China), especially for the Momo-no-ha(peach leaves) series made in Japan, in the fourth quarter alone. Since this product is also

highly profitable for the group, the large drop in demand for the Momo-no-ha(peach leaves)series led to a deterioration in gross profit margin.

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China Business

Q. What exactly has been the impact of ALPS treated water in the fourth quarter alone?
Also, has the market reaction regarding the treated water changed in the recent past?

A. The ALPS treated water had a particularly large impact on all product categories, including

Japanese-made glass nursing bottles for younger babies and the popular Momo no ha (Peachleaves) baby skin care. In particular, sales of baby skin care products, including the popular

Momo no ha(peach leaves) series of nursing bottles and glass nursing bottles made in Japanfor younger babies, declined sharply.

There is nothing we can say as a market reaction to the most recent treated water, but fromwhat we have heard from the field, we believe that the treated water impact bottomed out inthe fourth quarter and may not be zero in 202, but will gradually become smaller.

Q. How much did sales of nursing bottles and nipples fall in the fourth quarter alonecompared to the previous quarter?

A. In the fourth quarter alone, sales of nursing bottles and nipples were down 26% from theprevious quarter.

Q. Has there been any change in the market share of nursing bottle and nipple products
as a result of ALPS treated water?

A. Our market share of nursing bottle and nipple products for 2023 (our estimate) was over

41%. Although this is a slight decrease from the first half of the year, we recognize that we havemaintained a market share of more than 40%. The reason for the decline in market share is thedecrease in sales due to the impact of ALPS treated water.

Q. What factors contributed to the deterioration in gross margin in the fourth quarter
alone?

A. In addition to a 40% yoy decline in non-consolidated sales in the fourth quarter, the decline

in sales of nursing bottles and nipples and baby skin care, which account for a particularly highproportion of sales and have the highest profit margins, was particularly large, and gross profit
margins also deteriorated.

Q. Is the inventory in circulation in mainland China adequate at the end of 2023?

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

A. As of the end of 2023, the distribution inventory in mainland China was close to an

appropriate level. In the fourth quarter alone, the decline in sell-ins was larger than the decline
in sell-outs, but this was due to the fact that we used our internal system to check the status of
double-elevens on a daily basis and adjusted our shipments to control distribution inventory.

 Questions regarding the outlook for the year ending December 31, 2024 andthe second year of the medium-term management plan and beyond

Whole

Q. Is there any change in the quantitative targets for the final year of the 8th mediumterm plan (FY2025)?

A. Since the results for 2023, the first year of the medium-term management plan, fell short ofthe plan, the achievement of the quantitative target for 2025 is becoming more difficult.

However, depending on the recovery of the China and Singapore businesses in 2024, there is apossibility that the initial target will be within reach in 2025, so the quantitative target for the
final year remains unchanged at this time.

Q. I would like to know with certainty about your dividend plan for 2024.

A. If business performance grows as planned we believe it will be possible to maintain thedividend at the same level as the previous year in 2024. Of course, if large investment projects

arise and the demand for business investment increases, the dividend may fluctuate.
Japan Business

Q. Please tell us about your growth story for 2024.

A. The challenge for the Japan business in this medium-term business plan is to improve

profitability, but we have already achieved the 25-year plan ahead of schedule, with operating

income of 2 billion yen for the full year of 2011. In 2012, we will continue to invest in growth inareas such as manufacturing enhancement and marketing.
China Business

Q. Is there any change in the company's assumption of the number of births in mainland
China in 2024?

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

A. We have assumed that the number of births in mainland China will decrease by 5% annually
to 8.5 million in 2025 during the period of this medium-term business plan. We believe that

there is no problem in maintaining the original assumption. In 2023, the number of marriages

exceeded the previous year's level, and the year of the dragon in 2024 is an auspicious Chinese

zodiac sign, so there is some hope that the number of births will bottom out, but all of these
are temporary, so we will continue our business activities on the assumption that the
downward trend in births will continue.

Q. Please tell us about your growth story for 2024.

A. In 2012, we will place the highest priority on sales recovery, concentrating on efforts toachieve a 50% market share for nursing bottle and on recovering sales of skincare products. In
mainland China, we plan to increase sales by 14% yoy (in local currency), with plans toincrease sales of our mainstay nursing bottle and nipple products by 15% and skin careproducts by more than 10%.

To achieve this, we will increase SG&A expenses by about 2 billion yen from last year tostrengthen brand exposure, marketing, and communication content, focusing on EC channels(existing major EC and SNS such as Tiktok and Redbook). We will increase our investment in
2024 to ensure a recovery in business performance.

In the inland areas, where our customer coverage is still limited, we will further expand bystrengthening our efforts with Pinduoduo, an e-commerce platform that is strong in the inland
areas, in addition to reinforcing sales at offline stores that we have been developing.
Singapore Business

Q. Please tell us about your growth story for 2024.

A. In the Singapore business, rather than fostering new areas, our first priority is to strengthen

the existing areas of nursing bottles, nipples, and skin care. In 2024, we will rebrand wide necknursing bottle to increase brand value and boost sales. Although skincare products stillaccount for only a small percentage of total sales, we will further strengthen this category in2024 by launching new products in the Natural Botanical series.

Q. What are you doing to accelerate business growth in Southeast Asian countries as wellas in India?

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Pigeon Corporation Summary of Results Briefing for the FY December 31, 2023

A. Although India (with approximately 25 million births per year) is the largest in terms ofbirths, each market in India and other major countries in Southeast Asia has different levels of

maturity, and we believe that a certain amount of time is needed for business growth. Even

under such circumstances, we are aggressively pursuing structural reforms. For example, in

2024, we will consolidate two of our offices in India into one location to improve efficiency. In

addition, in order to overcome the lack of product development that will make our entire

business a hit, we will assign the executive officer who has been in charge of the development
division in Japan to this business segment to strengthen and speed up product planning anddevelopment.

Lansinoh Business

Q. Please tell us about your growth story for 2024.

A. Lansinoh has been able to increase sales every year even in the Covid-19 disaster, where thebusiness environment has changed dramatically. In 2024, Lansinoh plans to continue tolaunch many new products in the pregnancy, postpartum, and women's care categories, andto grow its business while transforming itself from a "breastfeeding" brand to one that
supports a wider range of mothers' health.

Q. Please tell us about the future development of D2C.

A. The D2C (Direct to Customer) sales model is being launched first in the European region. We
believe that by selling directly to customers, we can build closer, long-term relationships withthem. Sales in Germany and the UK have already grown by double digits yoy and are expected

to continue growing in the future. On the other hand, in North America, we feel that the hurdle
to D2C expansion is higher than in Europe due to the size of the country, but we intend to startsmall-scale efforts in 2012 to build a sales structure that will further satisfy North American
customers with the Lansinoh brand and make the brand even stronger.

[END]

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