Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

Summary of the Results Briefing for the FY December 2022
and the Announcement of the 8th Mid-Term Plan

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 based on management's assumptions andbeliefs in light of the information currently available to it and involve known and unknown

risks, uncertainties and other factors. Such risks, uncertainties and other factors may affect theCompany's performance.

In the event of discrepancy between the English version and the Japanese version of thesummaries, the Japanese-language version shall prevail.
Date:

Tuesday, February 14, 2023, 4:30 p.m. start

Speakers:

President and CEO

Norimasa Kitazawa

Director and Senior Managing Executive Officer

Tadashi Itakura

Director and Managing Executive Officer

Yasunori Kurachi

Director and Executive Officer

Kevin Vyse-Peacock

Senior Managing Officer

Ryo Yano

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

Kitazawa: Thank you very much for taking time to attend our briefing today.

First, let us share with you some of the highlights of this fiscal year. First, I will tell you aboutsustainability. Last year, we were selected as a constituent of the FTSE Russell's investment
index “FTSE Blossom Japan Index,” and we are ranked 66th in the index.

It was also selected for inclusion in the “FTSE4Good Index”, another FTSE Russell index, fromwhich only 1,658 companies worldwide are selected.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

Next is the ESG rating. When I became a president of Pigeon in 2019, our FTSE ESG Rating was

1.1. However, as of last year, this score had risen to 3.8 as a result of our efforts to address anddisclose our corporate social responsibility. I do appreciate such great achievement deliveredby hard work of our employees.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

We have a business proposal system called PFA (Pigeon Frontier Awards), and the products

and services that have developed from this system are gradually becoming commercialized.
For example, “Precious Drop,” a colostrum collection device for hospitals and maternity

hospitals, is now being accepted by hospitals and clinics throughout Japan.

In addition, on January 19, 2023, a book titled “Pigeon's Child Rearing” was released by

KADOKAWA Co. This book is based on the “child-rearing reports*” of employees that have been
accumulated within Pigeon over the years.

(*All of our employees who have a child are required to submit a report on their own childrearing experiences and the insights they gained from these experiences.)

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

Before we start reporting on our business performance, we would like to review our businessenvironment.

As you are probably aware of the changes in the global environment, our businessenvironment has changed drastically during the period of the 7th Mid-Term Management Plan,
including a decline in the number of births worldwide, including Japan and China, a slowdown

in growth in our core markets of Japan and mainland China, and increased competition ineach market with the rise of emerging and local brands. The Company's business environment
has changed drastically during the period of the 7th Mid-Term Management Plan.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

In this environmental changes, here are business results for the FY December 2022, the final
year of the 7th MTP.

Net sales ended at 102% yoy. Operating income was 91.4% yoy, but was generally in line withthe revised plan, at 99.9% of net sales and 101.6% of operating income.

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We made a table comparing H1 and H2 of last year.

Looking at the first half of last year alone, both net sales and operating income were lower

than the previous year. On the other hand, in the second half of the year alone, sales were108.4% yoy and operating income was 123.2% yoy, indicating a recovery trend.

Looking at the Q3 alone and the Q4 alone, sales and profits are up from the previous quarter,

and we believe the recovery trend will continue in the next year.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

These are the results by business segment.

In terms of sales, while the Japan and China businesses were below the previous year's levels,

the Singapore and Lansinoh businesses performed very well, with sales up 112.2% and 127.0%,
respectively, from the previous year.

In terms of the breakdown of our Japan business, sales in Baby Care, Childcare Services, andHealth & Elder Care all ended the year below the previous year's level, but we believe that thebusiness environment in Japan is gradually improving, as evidenced by the modest YoY
decline in Baby Care sales.

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Factors behind the year-on-year change in operating income.

The increase in profits was due to an increase in gross profit of about 800 million yen as aresult of increased revenues.

On the other hand, the decline in profit was largely due to an increase in labor costs, but thiswas also due to the fact that we did not reduce labor costs more than necessary in eachbusiness with an eye to the future.

In addition, logistics costs were a factor in the profit decline of about 400 million yen, mainly

due to the impact of higher ocean freight rates in Lansinoh.

In addition, since the second half of last year, business activities in various countries havebecome more active after the Covid, and the increase in travel and transportation expenses
and marketing expenses were factors in the decline in operating income.

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B/S Highlights. Cash and deposits decreased slightly compared to the end of the previous year.
Accounts receivable also decreased. We expect inventories to improve in 2023.

The rightmost figure in the table shows the YoY change in the BS line item excluding the impact
of FX rates.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

Summary by Business.

In the Japan business, sales of baby care business continued to struggle for consumables suchas Wet tissues and Nursing pads, while the effect of renewal of Nursing bottles continued

throughout the year. On the profit, procurement costs increased due to the weak yen andsoaring raw material prices, which continued to squeeze profits throughout the year.

In the China business, the market recovery was delayed due to the temporary market

disruption caused by rapid changes in the Q4, including the elimination of the zero-covid

policy and the subsequent re-spread of Covid. Despite such circumstances, the market share of

Nursing bottles dropped in the first half of 2022 due to the Shanghai lockdown, but recovered

to approximately 44% at the end of the year, almost back to the previous market share.

The picture on the bottom right of the slide shows a new skincare product for children over 3

years old, which was launched in China at the end of last year. This is also doing well, and weare very much looking forward to seeing it grow even more in 2023 and beyond.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

The Singapore business finally exceeded its pre-Covid performance last year. In terms of sales

in local currency, sales in India grew by 23% over the previous year, while sales in Malaysia andIndonesia grew by 19% each, and sales in the Middle East also grew by 10%.

Lastly, in the Lansinoh business, the high cost of logistics had a negative impact on profit

decline throughout the year. In terms of sales, the Lansinoh Group as a whole performed well,growing 5% over the previous year. Turkey also performed very well in local currency, but theextreme depreciation of the Turkish lira resulted in a considerable decline in sales recorded in
US dollars.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

Next part, we will review the 7th MTP.

In terms of brand strategy, Pigeon's brand image has been unified worldwide throughactivities in line with the new branding on a global basis. In addition, we have been
implementing a variety of new initiatives, such as support for breast milk banks.

As for our product strategy, we have launched new models of Nursing bottles in many

countries around the world and have completed their introduction in major markets. Even in

mainland China, 90% of the market has switched to new models.

As for regional strategies, the Group launched more than 250 SKUs of new products every year.
However, a major challenge in Japan is that inbound demand has almost disappeared.

ESG, as we explained earlier, is doing very well, as are FTSE scores, etc.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

Key KPIs.

As for PVA, there was a downward trend, partly due to a decrease in operating income. On theother hand, the CCC ended the year at 119 days due to global logistics disruptions and otherfactors, especially an increase in inventories. Unfortunately, ROE and ROIC also trended

downward.

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The future business activity policy of the group.

We will continue to operate according to the Pigeon Way, but in particular, we will highlight
our Purpose and address Key Issues (Materiality).

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

As for Pigeon Way, we have updated it this year.

Original Pigeon Way was on the left. Then “Mission” was changed to the “Purpose”. This year,

we have removed “vision” from the Pigeon Way, and have placed “Purpose” at the core of the

Pigeon Way, as shown on the right, with the aim of thoroughly focusing our activities on the
Purpose.

Our Corporate Philosophy and Credo have been set as “Pigeon DNA”, unchanging elements of
the Pigeon group.

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Here is our new corporate philosophy.

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Key Issues (Materiality) will also be updated. We have five items starting in 2023. We will also
further strengthen various governance and compliance systems.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

We will talk about our current coverage of births. Right now, the world's annual birth

population is about 130 million. In 2019, it was about 140 million per year, so it is still true that
Covid has had some impact.

However, our Pigeon brand has reached only about 30 million babies (about 25%) out of theapproximately 130 million babies born worldwide, taking into account income levels and otherfactors in each country. Therefore, even though the number of births is declining worldwide,

we believe the market opportunity for Pigeon remains huge.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

The theme of the 8th Mid-Term Management Plan, which began in 2023, is “For Sustainable
Growth”.

Within this broad direction, we have set the theme of restructuring our business structure in
response to global economic, political, and environmental changes.

The previous medium-term plan was the three years of the Covid disaster, and there are someareas where we are hurting as a business. We will fine-tune and restructure these areas while

taking measures to further accelerate growth in the 9th MTP and beyond.

The three Key strategies will continue from the 7th MTP, but will be further deepened.

In our brand strategy, we will focus on improving our brand strength through our products.

In terms of product strategy, while continuing to focus on our core products of Nursing bottles,
Nipples, and Baby skincare, we plan to expand our business by expanding into new areas suchas mothers, mothers-to-be, women's care, fathers, or toddlers and beyond.

In terms of regional strategy, we will further strengthen our four-business structure andconsider entering new markets, such as Africa, for example.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

Within the structural reform of the business, we have established “existing business areas” and“new business areas”.

In the “existing business areas”, we will focus on core products such as Nursing bottles,
Nipples and Baby skincare products.

By business segment, sales in the Singapore and Lansinoh businesses have been strong in thelast year, and we will continue to accelerate growth in the 8th MTP.

The China business will further develop its business foundation for stable growth.

Since the profit margin of the mainstay Baby Care business in Japan dropped significantly

during the previous mid-term plan period, we will first take measures such as increasing highvalue-added products in order to improve profitability.

With regard to new areas, we will expand our target customers, such as toddlers, mothers,

mothers-to-be, and fathers, as well as the areas in which we operate, such as North Americaand Africa. In North America, Pigeon brand products are already sold through our mainstay e-commerce sites, but we will consider introducing Pigeon brand products to major chain storesand establishing Pigeon brand sales offices in Africa as well.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

Brand Strategy. All of our activities are based on our Purpose, and to embody this Purpose, wehave established the “Vision of a Baby-Friendly Future”. For more details, you can check our

news release announced on our website.

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We also believe that the key to strengthening our brand is to reinforce the uniqueness that is“unique to Pigeon”.

In addition, we will work to create a consistent brand experience (coherence) and to involveand co-create with customers and society (Participation).

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

Next is “Monoxukuri”.

In addition to conventional R&D, we will further invest in “Monozukuri (manufacturing

enhancement” and plan to expand its expenses to approximately 6 billion yen by 2025.

An example of “Monozukuri” introduced here is the Steam sterilizer/dryer called POCHItto on

the left. This product originally sold well in overseas markets, but there was no such product inJapan because Japanese consumers did not have the lifestyle of using such an appliance tosterilize Nursing bottles. However, when we finally tried to market this product in Japan, sales

have been strong, despite its high unit price, and it has been well received by Japanese

consumers.

The photo on the right shows a stainless steel Nursing bottle sold in India. It is a simple

stainless steel nursing bottle with no heat-retention function, but this stainless steel nursing
bottle is very popular among consumers in India, partly because stainless steel tableware is

widely used on a daily basis culturally in India. The stainless steel nursing bottle has recently
been launched and is performing better than expected.

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In this way, we will strengthen “Monozukuri” from various directions, including horizontal

development of products that are being developed in other countries and productdevelopment tailored to the needs of customers in each country.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

Nursing bottles, one of our core categories, we will expand sales of wide-neck nursing bottles

in particular.

As shown in the figure on the right of this slide, we aim to improve profitability by increasing

the sales ratio of wide-neck nursing bottles in markets such as the Middle East and Indonesia,

where we already have a high market share for nursing bottles, but where profitability is not sohigh because our main products are standard-neck nursing bottles.

Although wide-neck nursing bottles are our main product in China, we have a market share ofabout 44%. We aim to further increase our market share to 50% and 60%.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

In the skincare business, the current market share in Japan is about 30%. In China, our market

share is about 10%, and there is room for further business expansion in all markets where we

operate, including Japan and China. In the Singapore business, we have launched a new

botanical series, and although our market share is still small, we have high expectations for its
future potential.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

In 2025, the final year of the 8th MTP, we expect consolidated group sales to increase by 19
billion yen compared to 2022. This includes 10 billion yen in new areas and 9 billion yen in

existing areas.

Within the new areas, we plan ¥6.0 billion, including “Age-Up (for toddlers and beyond)”,especially skincare and oral development-related products. In addition to kids' skincare

products for children aged 3 and older, these “Age-Up” products include, for example, newnursing bottles for older babies in the Chinese market, the launch of which will further increase
Pigeon's market share of Nursing bottles.

The “Women's Care” business is currently offered only under the Lansinoh brand, but with aview to offering the product under the Pigeon brand, we plan to grow this business to a scaleof 1.5 billion yen for the Group as a whole by the year 2025. In addition, we expect sales of new
products in the “Others” category to reach ¥2.5 billion.

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Next are initiatives by business segment.

In the Japan business, we will work to improve profitability as a key theme, with a sales CAGR

of +2.0% and an operating income CAGR of +8.4%.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

Here is an image of the new Fuji Plant, scheduled for completion in August 2023. The
investment is approximately 6 billion yen.

Not only will the new plant greatly increase our production capacity, but the primary purposeof this plant is to develop products that are uniquely Japanese and uniquely Pigeon. The R&D
functions related to skincare will be further strengthened, and we expect to see more great
products in the future.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

China Business. We aim for sales CAGR +8.4% and operating income CAGR +8.5%.

Priority strategies, especially in the supply chain, include improving profitability of factories
and reviewing distributors.

As part of this effort, for example, in South Korea, we have started our own direct sales

structure from this year. Through this, we plan to greatly improve both sales and profits.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

The Singapore operation plans a sales CAGR of +7.9% and operating income of CAGR +6.7%. In
the markets of each country under the Singapore operation will concentrate on the existingareas of Nursing bottles, nipples, and Baby skincare, and increase the sales mix of wide-necknursing bottles to grow both sales and profit.

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Lansinoh's sales continued to grow even with the Covid pandemic, and we are planning a

CAGR of +6.4% for sales and +6.7% for operating income in the 8th MTP. This year, we plan tolaunch a new breast pump. In addition, we will continue to plan and develop various new

products through R&D based on bio-design.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

The chart summarizes how much sales in each country will grow in 2025 compared to 2022 as aresult of the initiatives in each business.

South Korea is particularly significant. The switch to a direct sales structure is expected to leadto a significant increase in sales with growth of +194%.

We also plan significant growth in Southeast Asian markets such as Indonesia, India, andMalaysia.

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Here are the growth rates for the Lansinoh brand. The biggest growth over the three years will

be in Benelux, mainly in France. Germany also weakened slightly in Yr 2022, but we expect it topick up again from Yr 2023 onward.

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Here is the plan for the group consolidated. Over the three-year period, the sales CAGR is+6.2% and the operating income CAGR is +9.5%. The operating profit margin of last year was
down to 12.8%, but we hope to improve it to over 14% in the fiscal year FY Dec. 2025.

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Here is an image of the group's growth over the next three years.

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Here is a breakdown by business segment.

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As for investments, we plan to invest approximately 12 billion yen over the next three years. As

important financial KPIs, we aim to achieve ROE of over 14%, ROIC of over 15%, and PVA of 7
billion yen or more in FY Dec. 2025, the final year of the 8th MTP.

With regard to dividends, we plan not to reduce dividends, but to maintain the dividend
amount for the FY Dec 2022, FY Dec 2023 and beyond.

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These are the key issues (materiality) explained earlier and the individual issues connected tothem.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term PlanAmong our key issues, we have formulated a new Pigeon Green Action Plan for “environmental

impact reduction”.

Under “Decarbonization”, the goal is to reduce current Scope 1 and 2 GHG emissions by 50%

by 2030, with a target of net-zero emissions by 2050.

Under the “Circular society”, we have set a goal of 50% product packaging made from plant-

derived or recycled materials by 2030, and we hope to achieve 100% reusable, recyclable, orcompostable product packaging by 2050.

“Coexistence with nature”, our goal is to achieve 100% usage of sustainable paper in our

packaging by 2030. We also aim to change all palm oil used in the production of toiletries to
RSPO-certified palm oil by 2030.

Here are overview of the 8th Mid-Term Management Plan.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

Here is the management plan for the fiscal year ended December 2023, the first year of the 8th

Mid-Term Management Plan.

We are targeting sales of 100 billion yen, 105.4% yoy, and operating income of 12.4 billion yen,101.7% yoy.

The reason for the modest growth in operating income is that, along with the recovery fromthe Covid pandemic, we expect to need to spend a certain amount on activities in 2023, and weare planning many new products in 2023, so we will need to spend a certain amount onmarketing to promote these new products to our customers. This is because we expect that wewill need to spend a certain amount of money on marketing to promote these new products toour customers.

Since we believe that these activities in 2023 will lead to significant growth in 2024 and 2025,

we are planning a high growth rate of profit especially in the second and third years of the 8th
MTP.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

Here is the business plan by business segment. In terms of sales, we plan 101.3% yoy for theJapan business, 108.4% for the China business, 108.8% for the Singapore business, and 107.6%
for the Lansinoh business. For the breakdown of the Japan business, please see the details at
the bottom of the slide.

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Shareholder returns and investments. In terms of shareholder returns, our first priority is topay stable dividends, and we have set the interim and year-end dividend per share for FY 2023
at 38 yen per share, the same amount as FY 2022. We will actively consider increasing thedividend if business performance improves more than expected, such as if business results
exceed our target significantly.

On January 31, I visited China for a business trip for the first time in three years. Shanghai wasfull of vitality after the Covid. Our employees were very energetic.

The number of electric vehicles in the city was increasing. In proportion to this, charging

stations are being installed one after another in the city, and I felt that China is still a speedy
market compared to Japan.

As for our new products, I believe that we will be able to launch more than 100 SKUs of new
products in China this year.

That is all I have to say on the matter. Thank you very much.

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Q&A

Q&As are summarized by Business segment.

 Financial results for the FY December 2022
[Group Consolidated]

Q. How much of an impact of FX on profits in the Q4 YTD?

A. In the group consolidated results, there was a 1.7 billion yen positive impact on ordinary

income compared to the previous year's exchange rate. There was a 0.6 billion yen positive
impact on ordinary income compared to the planned exchange rate.

[China Business]

Q. How was the sell-ins and sell-outs in mainland China in the Q4 alone?

A. Mainland China sell-ins and sell-outs in the Q4 alone ended -17% and -12%, respectively yoy.

The market was severely disrupted in Q4 by the re-expansion of Covid infections due to thetermination of the zero-Covid policy in mainland China, which is expected to have affectedboth sell-in and sell-out.

 8th Mid-Term Management Plan
[Group Consolidated]

Q. How do you plan to change the sales composition of core products (Nursing bottles,
Nipples, and Baby skincare, etc.) in each business segment during the 8th MTP period?
A. In Japan (Baby Care), the sales composition of Nursing bottles and nipples will be about

16% in Yr 2022. In Japan, the market share of Nursing bottle is very high and is easily affectedby the decline in the number of births, so the sales composition ratio is expected to be less

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than 14% in Yr 2025. On the other hand, sales of Baby skincare, which accounted for about 17%of the total sales in Yr 2022, are expected to exceed 20% in Yr 2025.

In mainland China, sales of Nursing bottles and nipples accounted for 50% of total sales in

2022, while skincare accounted for about 28%. In 2025, sales of Nursing bottles and nipples,

which will be affected by the decline in the number of births, are expected to maintain 50% of
total sales, while sales of Baby skincare are expected to exceed 30%.

Although it is difficult to provide specific figures for the Singapore business due to the multiple
countries in which it operates, we intends to further increase the ratio of Nursing bottles andnipples, which account for about half of the external sales of the Singapore business. We aim

to achieve double-digit growth in sales of Nursing bottles and nipples every year. In addition,
the composition of Baby skincare is currently very low, but we will grow it at a high sales

growth rate as well as Nursing bottles by nurturing new products and other measures.

In the Lansinoh business, Nipple care cream, Nursing pads, and Breast pumps are the coreproducts, and the composition of these products is expected to further increase. In particular,

nipple care cream is expected to continue to grow at a solid sales CAGR of +6-7% during the 8th
MTP.

Q. In the final year of the 8 th MTP (Yr 2025), the company plans to exceed 10 billion yen

sales in “New Areas”. How much margin are you expecting to “New Areas” and expecting
any changes of margin of existing products?

A. In new business areas, we will focus on product development, etc., with particular attention
to profitability, so we expect higher profit margins than for existing products. In addition, forexisting products, for example, we will consider whether to continue or terminate sales of
products with low profitability in the Japanese market. By aggressively restructuring its

product portfolio, both existing and new, we hope to further increase profitability as a group.
Q. What are the main reasons for the increase in SG&A expenses during the 8th MTP?
A. SG&A expenses in Yr 2025 are planned to increase by 8 billion yen from the 2022. The

breakdown of this increase is: approximately 4 billion yen for marketing and sales related
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expenses, 2 billion yen for “Monozukuri” expenses, and 2 billion yen for other expenses such as

personnel costs and amortization. “Monozukuri” costs will be used to strengthen productdevelopment tailored to the characteristics of each country's market, and marketing costs will

be used to ensure that these new products are sold well.

Q. Regarding the 12 billion yen invested during the 8th MTP, it appears to have been
reduced compared to the previous MTP.

A. During the 7th MTP, several large investment projects worth several billion yen werecompleted, including the construction of the Fuji plant in Japan and additional buildings at theplant in China, and some of these projects are still in progress in 2023, but we plan to complete
all large-scale investments during the previous medium-term management plan period.

Therefore, the amount of investment in the 8th MTP is not as large as in the previous MTP, but

the company plans to continue to make necessary investments as needed during the period of

this MTP.

Q. What is your dividend policy for the 8th medium-term management plan period?

A. The shareholder return policy of the 8th MTP is to “maintain stable dividends”. During theprevious medium-term plan, we committed to a total return ratio of at least 55% and annual

dividend increases, and have steadily implemented this policy. On the other hand, we believethat the situation should be improved, where the dividend payout ratio has been above 100%in recent years due to a temporary decline in business performance caused by the impact of
the global Covid pandemic.

After considering shareholder value, we plan to maintain the dividend at the same level as theprevious year in the FY Dec 2023 plan, and the payout ratio is expected to be 112%. In thesecond and third year of the 8th MTP, the dividend payout ratio is expected to fall below 100%as the company's performance improves.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

[Japan Business]

Q. How much inbound demand do you expect during the 8th MTP?

A. Inbound demand is planned at zero. The current sales data do not show any particularfigures that would indicate a revival of inbound demand.

Q. How do you plan to grow the skincare category during the 8th MTP, given the

downward trend in demand for Momo-no-ha Lotion (Peach leaves series), which has had
particularly strong inbound sales in the past?

A. Regarding Momo-no-ha lotion, we believe that inbound demand completely disappeared

during the previous MTP period, and we have not factored in a recovery of inbound demandduring the 8th MTP.

During the 8th MTP, we plan to develop and launch new skincare products, mainly at the newly

built Fuji Plant, to replace Momo-no-ha Lotion, for which demand has settled down. Our

market share of skincare products in Japan is still only about 30%, which offers significant

growth opportunities compared to Nursing bottles, we believe that it can further expand its

business in Japan through the launch of products for toddlers and beyond.

Q. Even in the final year of the 8th MTP, the operating profit margin of the Japan businessappears to be less than 5%, which is not a recovery compared to the pre-Covid period.

A. We recognize that the biggest challenge for the Japan business in the 8th MTP is “improving

profitability”. As an example, we believe that we can contribute to improving profitability bylaunching high value-added and profitable products in the “New Areas”. In addition, in thebaby care business, we have been implementing price revisions for many product lines,

including Nursing bottles since the beginning of February 2023 to partially cover the rising costof raw materials. While taking into account strategic SG&A investments, such as Monozukuri
costs, we intend to respond to the improvement in profitability with speed.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

[China Business]

Q. Do you see any signs of positive changes in China's macro environment (such as arecovery in the number of births and an increase in the marriage rate) during the 8th
MTP?

A. The Chinese market has changed dramatically with the Covid pandemic, and trends in thenumber of births and marriage rates have become extremely difficult to predict. However,
although the number of births has been declining in recent years, we recognize that the

Chinese market, with nearly 10 million births, is still the largest market in the world. In the 8th
MTP, we will once again aim to increase the attractiveness of our products in the Chinese

market, expand our market share, and achieve further growth in business performance.

Q. What are the assumptions for the number of births in mainland China during the 8th
MTP?

A. We expect the number of births to continue to decline after 2023, given the declining

number of people of marriageable age and the declining proportion of the population who

wish to get married. We assume number of birth in Yr 2025 will be around 8.7Million, decreaseby 18% compared with Yr 2021.

Q. Of the +8.4% sales CAGR for the China business, what is the planned sales CAGR in
mainland China in local currency terms?

A. We plan a sales CAGR of about +5% in mainland China on a local currency basis.
Q. Why has the operating margin for the China business remained flat in 8 th MTP?

A. In mainland China, EC sales accounted for 70% of total sales in Ye 2022, and as the presenceof EC channels continues to grow. In order for us to achieve stable growth, we need to invest

not only in existing major EC channels, but also in emerging EC channels such as Tiktok, whichtargets younger customers, and Pinduoduo, which is strong in rural areas. Due to the impact ofthese investments, we plan for the operating margin to remain flat. Nevertheless, the company
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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Planplans to maintain high profitability in its China business, with an operating margin of 30% in

the final year of the 8th MTP.

Q. Do you have a target of market share for Nursing bottles in mainland China in Yr 2025?
A. We have set a goal of achieving a 50% market share of the Nursing bottle and nipple by theend of Yr 2025. However we planned to achieve 50% market share in the previous MTP, thelaunch of new products was delayed due to the Covid pandemic and we were unable toconduct business activities as expected.

With the number of births in China declining significantly over the past two to three years dueto the Covid pandemic, it will not be easy to achieve a 50% market share, but our future

direction is to continue to expand our market share by developing new products that will

enable our Nursing bottles to be used not only in the segment of “newborns to 6-month-oldbabies,” where our nursing bottles are particularly strong, but also in “6-month-old and older
babies” who are starting to eat baby food and other food products.

[Singapore Business]

Q. Which markets are the most important for your Singapore business?

A. As shown in the three-year sales growth rate of each country on a local currency basis (seepage 42 of the presentation), we plan to grow particularly in Indonesia, followed by India,

Malaysia, and the Middle East. In Indonesia, we plan to accelerate growth by promoting wide-

neck nursing bottles, and in India, by promoting local procurement of products such as

stainless steel nursing bottles (see page 32 of the presentation) and other products that meet

local consumer needs.

Q. The operating margin for the Singapore business in Yr 2025 appears to be lower than in
Yr 2022.

A. The impact of the decline in profits of the two Thai factories is significant. Shipments ofnursing bottles to Japan and South Korea, the main customers of the Thailand factories, are
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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan

expected to remain sluggish during the 8th MTP period due to a decline in the number of births
in both countries. The resulting decline in earnings at the two Thai plants is a factor in the

decline in profits for the Singapore business.

In the 8th MTP, each sales company in the Singapore business will spend a certain amount ofmarketing expenses, focusing more on aggressive sales growth (CAGR +10%) than on

improving operating profit margins. Over the three-year period, we plan to increase theamount of operating income from external sales at a nearly double-digit growth rate.

[Lansinoh Business]

Q. The sales CAGR +6% over seems conservative.

A. Lansinoh's sales grew steadily during the previous MTP despite of Covid pandemic. In 2022,
we significantly increased sales thanks to special demand for breastfeeding products due tothe shortage of formula milk supply in the U.S. However, we expect special demand to slow

down in 2023 and beyond. In addition, during the 8th MTP, Lansinoh is planning to take into

account to some extent the uncertain risks in Europe and the United States, where Lansinoh
mainly operates, such as the economic recession in the U.S. and the situation in Ukraine.

Q. The operating profit margin appears to remain flat in the Yr 2025.

A. Lansinoh plans to sell several key new products in the 8th MTP, and the operating income

margin is expected to remain flat due to the cost of developing these products,

communication expenses to promote the new products, and marketing expenses to ensure

sales growth of these new products. By further enhancing new breast pumps and new prenatal

and postpartum care products during the 8th MTP, we believe that we will be able to change
our business model to one that will enable more sustainable growth.

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Pigeon Corporation Summary of the Results Briefing for the FY December 2022 and the Announcement of the 8th Mid-Term Plan Outlook for the FY Dec 2023

Q. Can you tell us what the company is seeing in Costs and Expenses in Yr 2023 Forecast?
A. We expect raw material prices to remain high in the first half, and assume that the same
situation will continue through the second half. However, for example, in the Baby carebusiness in Japan, prices of many product lines, including Nursing bottles have been revised
since February 2023 to cover part of the raw material price hikes. In SG&A expenses,

Monozukuri , as well as labor and other expenses are expected to increase to some extent.

Nevertheless, we plan to spend the necessary funds in 2023 to “sow seeds of growth” with aview to growth in 2024 and beyond.

[END]

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