Summary of Financial Results
for the First Quarter of Fiscal Year Ending December 2021
[Japanese Standards] (Consolidated)
May 13, 2021
Name of Listed Company: Pigeon Corporation (Stock code: 7956)
Listing: First Section, Tokyo Stock Exchange
Website: www.pigeon.com
Representative: Norimasa Kitazawa (President and CEO)Contact person: Nobuo Takubo (Managing Officer, Business Strategy Division Manager)/Tel: +81-3-3661-4204
Scheduled Filing Date of Quarterly Report: May 14, 2021
Scheduled Commencement Date of Dividend Payments: —Preparation of Any Additional Explanatory Materials for Quarterly Financial Results: Yes
Holding of Any Briefing Session for Quarterly Financial Results: Yes (For analysts)

1. Consolidated Business Performance for the First Quarter of Fiscal YearEnding December 31, 2021 (January 1 to March 31, 2021)(1) Consolidated Operating Results (cumulative)

1Q ended March 31, 2021

(Millions of yen, rounded down, % figures denote year-on-year change)
Net Income
Net Sales
Operating Income
Ordinary Income
Attributable to
Owners of Parent
21,359(6.5)%
2,861(15.9)
3,454(10.6)
2,008(30.0)

1Q ended March 31, 2020
22,836(10.3)%(Note) Comprehensive income: 1Q ended March 31, 2021
1Q ended March 31, 2020

3,403
(24.4)
3,864¥4,165 million (245.2%)¥1,206 million (69.9% negative)

Net Income per Share (¥)(13.3)

2,869

(8.6)

Diluted Net Income per
Share (¥)

1Q ended March 31, 2021

16.79

－

1Q ended March 31, 2020

23.97

－

(2) Consolidated Financial Position
Total Assets
1Q ended March 31, 2021

Net Assets

92,823Equity Ratio (%)

72,41775.0

FY ended December 31, 2020
93,472
72,625(Reference) Shareholders’ Equity: 1Q ended March 31, 2021
¥69,655 million
FY ended December 31, 2020 ¥69,903 million

74.8

2. Cash Dividends
Annual Dividend (¥)
1Q-end2Q-end3Q-end

36.00
FY ended December 31, 2020－
FY ending December 31, 2021－
FY ending December 31, 2021
37.00
(Forecast)(Note) Changes in dividend forecasts from the most recent announcement: None

Year-end

Total

－

36.00

72.00

－

37.00

74.00

3. Consolidated Business Performance Forecasts for the Fiscal YearEnding December 31, 2021 (January 1 to December 31, 2021)
Net Sales
Millions of Yen(% figures denote year-on-year change from the previous term)
Net Income
Net Income per
Operating Income
Ordinary Income
Attributable to
Share
Owners of Parent% Millions of Yen% Millions of Yen

Full year
100,800
1.4
16,5007.7
16,700(Note) Revision of forecasts from the most recent announcement: None

% Millions of Yen

3.6

11,100

%

4.3

Yen

92.75

Notes
(1) Changes in major subsidiaries (or changes in specific subsidiaries that affect the scope of consolidation) during theperiod under review: None
New: － (Company name: － ), Excluded: － (Company name: － )(2) Application of any accounting procedures specific to preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting-based estimates, and restatements
1) Changes in accounting policies associated with revision of accounting standards: Yes
2) Changes in accounting policies other than the above 1): None
3) Changes in accounting-based estimates: None
4) Restatements: None
(Note) For details, please refer to “(3) Notes on Consolidated Financial Statements (Change in Accounting Policy)” in “2.
Quarterly Consolidated Financial Statements and Main Notes” on page 9 of the Appendix.

(4) Number of outstanding shares (common stock)1) Number of shares outstanding at the period-end (including treasury stock)
1Q ended March 31, 2021: 121,653,486
FY ended December 31, 2020: 121,653,486
2) Amount of treasury stock at the period-end
1Q ended March 31, 2021: 2,017,950
FY ended December 31, 2020: 2,017,880
3) Average number of shares outstanding during the period (quarter accumulation)
1Q ended March 31, 2021: 119,635,598
1Q ended March 31, 2020: 119,727,060(Note) Amount of treasury stock at the period-end includes Company shares held by the board incentive plan (BIP) trust forcompensation of directors (124,800 shares as of 1Q ended March 31, 2021 and FY ended December 31, 2020).
Company shares held by the BIP trust for compensation of directors are also included in the treasury stock subtracted
in the calculation of the average number of shares outstanding during the period.

* Summaries of quarterly financial results are exempt from quarterly review by certified public accountants andauditing corporations.
* Cautionary Statement regarding Performance Forecasts
The forecasts and future projections stated in this report have been prepared on the basis of the information andassumption that shall be reasonable as of the date of announcement of this summary information, and the forecasts
and future projections stated in this report are in no way intended as a promise of achievement as a company.
In addition, the actual results could differ significantly from forecast figures depending on a variety of factors. See
the section “(3) Explanation of Consolidated Performance Forecast and Other Future Predictions” in “1. Qualitative
Information Regarding the Financial Results for the Current Quarter” on page 4 regarding conditions which arepreconditions for business performance forecasts and cautions for using the business performance forecast.

Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2021

Table of Contents of the Appendix
1. Qualitative Information Regarding the Financial Results for the Current Quarter.......................... 2(1) Explanation of Business Performance ......................................................................................... 2(2) Explanation of Financial Position ............................................................................................... 4(3) Explanation of Consolidated Performance Forecast and Other Future Predictions .................... 4
2. Quarterly Consolidated Financial Statements and Main Notes ....................................................... 5(1) Quarterly Consolidated Balance Sheets ...................................................................................... 5(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income .............................................................................................................. 7
Quarterly Consolidated Statement of Income(Scope of Consolidation of First Quarter)................................................................................. 7
Quarterly Consolidated Statement of Comprehensive Income(Scope of Consolidation of First Quarter) ................................................................................. 8(3) Notes on Consolidated Financial Statements .............................................................................. 9(Notes Regarding Going Concern Assumptions) ........................................................................ 9(Change in Accounting Policy) ................................................................................................... 9(Change in Presentation Method) ................................................................................................ 9(Notes Regarding Substantial Changes in Shareholders’ Equity) ............................................... 9(Segment Information) .............................................................................................................. 101

Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2021

1. Qualitative Information Regarding the Financial Results for the Current Quarter(1) Explanation of Business Performance
During the consolidated first quarter under review, the Japanese economy continued to face toughconditions due to the impact of the spread of COVID-19. However, we began to see a certain amountof recovery in some areas. In the global economy including Japan, even as countries begin togradually increase the level of socioeconomic activities while establishing measures to prevent the
spread of COVID-19, problems such as intermittent resurgence of the virus and lockdowns (cityclosures) are occurring in regions throughout the world. Accordingly, we predict that uncertainty
regarding the future of the economy will continue for the time being.
Amid such circumstances, the Group has established three basic strategies (brand strategy, coreproduct strategy, and regional strategy) in our Seventh Medium-Term Business Plan (for the period
between the fiscal year ended December 2020 and the fiscal year ending December 2022) that wasformulated in February 2020. Now, in the second year of the Plan, we are implementing various
measures for business growth, as well as to realize our purpose which is “we want to make the world
more baby-friendly by furthering our commitment to understanding and addressing babies' uniqueneeds.”
During the consolidated first quarter under review, due to the impact of the spread of COVID-19
and to the application of accounting standards, etc., related to revenue recognition, net sales
amounted to ¥21,359 million (down 6.5% YOY). Regarding earnings, although sales decreased, theGroup actively used sales promotion expenses and advertising expenses, resulting in operating
income of ¥2,861 million (down 15.9% YOY), ordinary income of ¥3,454 million (down 10.6%YOY), and quarterly net income attributable to owners of parent of ¥2,008 million (down 30.0%
YOY).
Furthermore, as a change in accounting policies, the Group has applied the Accounting Standard for
Revenue Recognition (ASBJ Statement No. 29; March 31, 2020) from the beginning of theconsolidated first quarter under review. For this reason, the year-on-year comparison uses numbers
based on different calculation methods. For details, please refer to “(3) Notes on Consolidated
Financial Statements (Change in Accounting Policy)” in “2. Quarterly Consolidated Financial
Statements and Main Notes.”
The main exchange rates used in the preparation of this first quarter’s financial statements for theCompany’s overseas consolidated subsidiaries (revenues and expenses) are as follows:
・1 US$: 106.04 yen (108.97 yen)
・1 CNY: 16.36 yen (15.61 yen)
Note: Figures in parentheses represent the exchange rate in the same period of the previous fiscal
year.
From the fiscal year ended December 31, 2020, the Group has a total of four reporting segments:
the Japan Business, China Business, Singapore Business, and Lansinoh Business.
An outline of each segment is given below.
Due to the application of the Accounting Standard for Revenue Recognition from the beginning of
the consolidated first quarter under review, the year-on-year comparison for the Japan Business andChina Business segments uses numbers based on different calculation methods. For details, pleaserefer to “(3) Notes on Consolidated Financial Statements (Segment Information)” in “2. Quarterly
Consolidated Financial Statements and Main Notes.”
Japan BusinessThis segment consists of the Domestic Baby & Mother Care Business, Child Care Service Business,and Health & Elder Care Business. Due to factors such as application of the Accounting Standard for
Revenue Recognition, net sales for the entire segment amounted to ¥9,717 million (down 15.2%
2

Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2021

YOY). Segment profit was ¥603 million (down 32.1% YOY) due to factors such as a decrease ingross profit caused by the decline in net sales.
In the category of products for babies and mothers, the complete lack of foreign visitors to Japancaused a decrease in net sales for nursing bottles and other products with a drastic decrease in inbounddemand. On the other hand, sales were strong for breast pumps, which is an area of focus by theGroup. In the Japan Business segment, in February, we launched the new product “Baby Wipe
Premium Luxury Thickness.” These baby wipes feature a unique “Dekopoko Wipe” design which is
1.5 times thicker than conventional wipes and contains a generous amount of moisture for gently
wiping the delicate skin of newborns. In March, we launched “Runfee RB1,” a stroller with the best
performance on uneven surfaces of any stroller in its class.
As part of our initiatives for direct communication, the Group performed SNS live streaming toconvey the features of our strollers in an easy-to-understand manner. The streamed content wasviewed by a total of more than 1,600 people. We also streamed cooking videos aimed at expecting
mothers, which were viewed by a large number of people. In order to alleviate the anxiety of mothers
and fathers in the midst of the COVID-19 pandemic, we are working to enhance support contents
provided via the internet and SNS, and to further improve the website Pigeon Info, which supports
women in the different phases of pregnancy, childbirth, and childcare.
In the category of products for health and elder care, for some products, the increased demand forhygiene-related products from last year has run its course, and sales decreased year-on-year. For
health care products, we renewed the oral care series of the Group brand “Habinurse” as the “Clean
Smile Series.” We also added the new products “Denture Toothpaste” and “Medicinal Oral
Moisturizing Mist” to the lineup and began sales in February 2021.
Regarding child care service, during the consolidated first quarter under review, we currently
provide services at 71 in-company child-care facilities, and shall continue to develop this businessfurther while striving to improve the quality of service content.
China BusinessNet sales in this segment amounted to ¥7,685 million (up 7.5% YOY), and segment profit also
increased to ¥2,434 million (up 1.1% YOY).
Mainland China recovered quickly from the effects of COVID-19. There were strong sales for thecore product of nursing bottles, as well as for skin care products and other products which we aretargeting for fundamental research.
In terms of profits, while aggressively investing sales promotion expenses in areas such as the
e-commerce market in which expansion is accelerating rapidly, we also increased our gross profit
due to sales growth. Consequently, results exceeded the previous fiscal year.
The Group is continuing to leverage SNS and live streaming to invigorate direct communication
with consumers and support the provision of child care information during COVID-19, to reinforce
sales promotions at stores and promote distribution of new products, and to strengthen activities at
hospitals and maternity clinics. In these ways, we are working to broaden contact points withcustomers and expand our operations.
Singapore BusinessNet sales of the segment amounted to ¥2,869 million (down 13.9% YOY), and segment profit also
decreased to ¥356 million (down 46.8% YOY).
The ASEAN region and India in which this segment does business were severely impacted by the
COVID-19 pandemic. There are continued restrictions on corporate activities and stagnating
consumption. Moreover, there is decreased shipping of products destined for Japan from ourThailand Plant. As a result of factors such as these, tough conditions continue. Moving forward, we
will continue to promote the development and launch of products for the middle class, and actively
develop sales and marketing activities with the aim of achieving market penetration for the Groupbrands.

3

Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2021

Lansinoh BusinessNet sales of the segment amounted to ¥3,117 million (up 2.6% YOY), while segment profit
decreased to ¥318 million (down 20.3% YOY).
In North America, there were strong sales in the e-commerce channel, as well as growing sales ofnipple care cream and breast milk storage bags. Conversely, sales were down year-on-year for someconsumable products, a category where market competition has become even tougher.
Profits were down year-on-year due to active utilization of selling, general and administrative
expenses. Moving forward, in order to further expand business in China (Lansinoh Laboratories
Shanghai) and Europe in addition to North America, the Group is implementing initiatives such asenhancing our product lineup, strengthening e-commerce, implementing marketing activities, andengaging in brand strengthening activities.
(2) Explanation of Financial Position(Assets)
As of March 31, 2021, our Group recorded total assets of ¥92,823 million, down ¥649 million fromthe previous consolidated fiscal year ended December 31, 2020. Current assets decreased by ¥1,139
million, while fixed assets increased by ¥489 million.
Current assets decreased mainly due to decreases in cash and deposits of ¥3,436 million and innotes and accounts receivable-trade of ¥610 million, despite increases in merchandise and finishedgoods of ¥1,646 million and in raw materials and supplies of ¥596 million.
Fixed assets increased mainly due to a ¥1,128 million increase in buildings and structures under
tangible fixed assets, despite a ¥566 million decrease in other tangible fixed assets and a ¥109
million decrease in other intangible fixed assets.
(Liabilities)
As of March 31, 2021, our Group recorded total liabilities of ¥20,405 million, down ¥440 million
from the previous consolidated fiscal year ended December 31, 2020. Both current and fixedliabilities decreased by ¥187 million and ¥253 million, respectively.
Current liabilities decreased mainly because of a decrease in income taxes payable by ¥927 million
and a decrease in other current liabilities by ¥1,172 million, despite provision for expenses related
to voluntary product recall of ¥507 million, an increase in notes and accounts payable-trade by¥1,119 million, and an increase in accrued bonuses to employees by ¥217 million.
Fixed liabilities decreased mainly because other fixed liabilities decreased by ¥310 million.
(Net Assets)
As of March 31, 2021, our Group recorded total net assets of ¥72,417 million, down ¥208 million
from the previous consolidated fiscal year ended December 31, 2020.
Net assets decreased mainly due to a decrease in retained earnings of ¥2,302 million, despite anincrease in foreign currency translation adjustment of ¥2,046 million.
(3) Explanation of Consolidated Performance Forecast and Other Future Predictions
At the current point in time, the future is uncertain due to the global pandemic of COVID-19 inJapan and countries around the world. It is extremely difficult to predict future trends and to
calculate the amount of impact on the Group’s performance. However, due to the global COVID-19
pandemic, we predict that measures such as intermittent lockdowns (city closures) and enforcementof travel restrictions will continue for the time being. Therefore, the Group has revised quantitative
targets for the fiscal year ending December 31, 2021 and the fiscal year ending December 31, 2022
as stated in the “Notice of Revision of Medium-Term Business Plan” announced on February 10,
2021.
In order to achieve the revised business plan, while engaging in further development andstrengthening of business operation systems, the Group will strive to improve management quality
by steadily implementing various measures based on each business strategy and the function
strategies which serve as the foundation for those business strategies.
4

Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2021

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
At December 31, 2020
ASSETS
I. Current Assets:
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total Current Assets
II. Fixed Assets:
1. Tangible Fixed Assets:
Buildings and structures, net
Land
Other tangible fixed assets, net
Total Tangible Fixed Assets
2. Intangible Fixed Assets:
Goodwill
Other intangible fixed assets
Total Intangible Fixed Assets
3. Investments and Other Assets:
Other
Allowance for doubtful accounts
Total Investments and Other Assets
Total Fixed Assets
Total Assets
LIABILITIES
I. Current Liabilities:
Notes and accounts payable - trade
Electronically recorded obligations - operating
Income taxes payable
Accrued bonuses to employees
Provision for expenses related to voluntary productrecallProvision for sales returns
Provision for loss on litigation
Other current liabilities
Total Current Liabilities
II. Fixed Liabilities:
Net defined benefit liability
Provision for share-based remuneration
Other fixed liabilities
Total Fixed Liabilities
Total Liabilities

5

At March 31, 2021

37,16315,085
8,256
350
2,768
1,783
(178)
65,23133,726
14,475
9,903
510
3,365
2,298
(188)
64,091

7,212
6,009
10,04023,262

8,340
6,050
9,473
23,864

647
2,310
2,957

632
2,201
2,833

2,021
(0)
2,020
28,241
93,472

2,033
(0)
2,032
28,731
92,823

4,757
1,670
1,906
952

5,876
1,796
978
1,170

－

507

53
7
6,315
15,664－
3
5,143
15,477

440
205
4,535
5,181
20,846

471
232
4,224
4,928
20,405

Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2021

(Millions of yen)
At December 31, 2020

At March 31, 2021

NET ASSETS
I. Shareholders’ Equity:
Capital stock

5,199

5,199

Capital surplus

5,179

5,179

Retained earnings

61,12058,817

Treasury stock(1,478)(1,478)

Total Shareholders’ Equity

70,02067,71713

22

Foreign currency translation adjustment

(129)

1,916

Total Accumulated Other Comprehensive Income

(116)

1,938

III. Non-controlling Interests

2,722

2,761

Total Net Assets

72,62572,417

Total Liabilities and Net Assets

93,472

92,823

II. Accumulated Other Comprehensive Income:
Valuation difference on available-for-sale securities

6Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2021

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income
Quarterly Consolidated Statement of Income(Scope of Consolidation of First Quarter)(Millions of yen)

I. Net Sales
II. Cost of Sales
Gross profit
Reversal of provision for sales returns
Provision for sales returns
Adjusted gross profit
III. Selling, General and Administrative Expenses
Operating Income
IV. Non-operating Income:Interest income
Dividend income
Subsidy income
Foreign exchange gains
Other non-operating income
Total Non-operating Income
V. Non-operating Expenses:
Interest expenses
Sales discounts
Foreign exchange losses
Other non-operating expenses
Total Non-operating Expenses
Ordinary Income
VI. Extraordinary Income:Gain on sales of fixed assets
Gain on sales of investment securities
Total Extraordinary Income
VII. Extraordinary Loss:
Loss on sales of shares of subsidiaries andassociates
Loss on sales of fixed assets
Loss on disposal of fixed assets
Expenses related to voluntary product recall
Total Extraordinary Loss
Income before Income Taxes
Income taxes - current
Income taxes - deferred
Total Corporate Income Tax
Net Income
Net Income Attributable to Non-controlling Interests
Net Income Attributable to Owners of Parent

7

Three months ended
March 31, 2020
22,836
11,483
11,35241
55
11,337
7,933
3,403

Three months ended
March 31, 2021
21,359
11,19010,168－－
10,168
7,307
2,861

42
101
379
－
109
632

39
124
18
321
106
610

1
56
40
73
171
3,864

11
－
－
6
17
3,454

0
33
33

0
33
34

37

－

9
10
－
56
3,841
1,015
(107)
907
2,933

0
2
507
510
2,978
1,599
(648)
951
2,026

63

18

2,869

2,008

Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2021

Quarterly Consolidated Statement of Comprehensive Income(Scope of Consolidation of First Quarter)(Millions of yen)

Net Income
Other Comprehensive Income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Total Other Comprehensive Income

Quarterly Comprehensive Income

Three months ended
March 31, 2020
2,933

Three months ended
March 31, 2021
2,026

(16)

9

(1,710)(1,726)
1,206

2,129
2,138
4,165

1,459

4,059

(252)

106

(Break down)

Quarterly comprehensive income on parent
company
Quarterly comprehensive income on
non-controlling interests

8Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2021

(3) Notes on Consolidated Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable.
(Change in Accounting Policy)(Application of Accounting Standards, etc., Related to Revenue Recognition)
The Group has applied the Accounting Standard for Revenue Recognition (ASBJ Statement
No. 29; March 31, 2020; hereinafter, “Accounting Standard for Revenue Recognition”) fromthe beginning of the consolidated first quarter under review. In accordance with the
Accounting Standard for Revenue Recognition, when control of a promised good or service istransferred to the customer, revenue will be recognized at the amount expected to be received
in exchange for the good or service.
As a result, a portion of the sales promotion expenses, etc., which were previously recorded inselling, general and administrative expenses, and sales discounts, which were recorded in
non-operating expenses, have been deducted from net sales. Furthermore, regarding theprovision for sales returns that was previously recorded as current liabilities based on theamount equivalent to gross profit, we changed to a method that does not recognize the net
sales and the amount equivalent to cost of sales for products that are expected to be returned.
Refund liabilities are included in “Other current liabilities” and refund assets are included in“Other current assets”.
When applying the Accounting Standard for Revenue Recognition, etc., we comply with thetransitional treatment stipulated in the provisions of Paragraph 84 of the Standard. The
cumulative impact of retroactively applying the new accounting policy prior to the beginningof consolidated first quarter under review is added or subtracted to the retained earnings at the
beginning of the consolidated first quarter under review and the new accounting policy isapplied from the beginning balance. However, there is no effect on the beginning balance.
As a result, for the consolidated first quarter under review, net sales decreased by ¥1,015
million, cost of sales decreased by ¥12 million, selling, general and administrative expenses
decreased by ¥928 million, and non-operating expenses decreased by ¥74 million.
Consequently, gross profit decreased by ¥1,002 million, and operating income decreased by¥74 million. However, there was no effect on ordinary income or income before income taxes.
In accordance with the transitional treatment stipulated in Paragraph 28-15 of the AccountingStandard for Quarterly Financial Reporting (ASBJ Statement No. 12; March 31, 2020), we do
not list information showing a breakdown of revenue earned from contracts with customers
for the previous consolidated first quarter.
(Change in Presentation Method)(Relation to the Consolidated Income Statement)
In the previous consolidated first quarter, the amount of dividend income was included in“Other non-operating income.” Since that amount exceeded one-fifth of non-operating income,the amount is posted separately starting from the consolidated first quarter under review. In
order to reflect this change in presentation method, the consolidated financial statements forthe previous consolidated first quarter have been reclassified.
As a result, the ¥211 million that was presented in “Other non-operating income” in theConsolidated Statement of Income for the previous consolidated first quarter has been
reclassified into “Dividend income” of ¥101 million and “Other non-operating income” of¥109 million.
(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable.
9Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2021

(Segment Information)
Three months ended March 31, 2020
Information Regarding Net Sales and Profit (Loss) in Each Reporting Segment(Millions of yen)AmountAccounted on
Quarterly
Consolidated
Statement of
Income(Note 2)

Reporting Segment

Japan Business

China Business Singapore Business Lansinoh Business

Adjustments(Note 1)Total

Net sales
Net sales toexternal customers

10,675

7,090

2,029

3,039

22,836－

22,836

Internal sales or
exchange between
segments

780

57

1,303

0

2,141

(2,141)－

Total

11,456

7,148

3,333

3,040

24,978(2,141)

22,836

Segment profit

889

2,407

669

399

4,367

(963)

3,403

(Notes)1. The negative amount of ¥963 million from adjustments in segment profit includes negative ¥89 million in elimination ofintersegment transactions, and negative ¥873 million in non-allocable operating expenses. Non-allocable operating
expenses are administrative costs of our Group.
2. Segment profits are adjusted to operating income in the quarterly consolidated statement of income.

Three months ended March 31, 2021
1. Information Regarding Net Sales and Profit (Loss) in Each Reporting Segment(Millions of yen)
Reporting Segment

Japan Business

China Business Singapore Business Lansinoh Business

Adjustments(Note 1)

Total

AmountAccounted on
Quarterly
Consolidated
Statement of
Income(Note 2)

Net sales
Net sales toexternal customers

8,985

7,626

1,644

3,103

21,359－21,359Internal sales or
exchange between
segments

731

58

1,225

14

2,030

(2,030)

－

Total

9,717

7,685

2,869

3,117

23,389(2,030)21,359Segment profit

603

2,434

356

318

3,713

(852)

2,861

(Notes)1. The negative amount of ¥852 million from adjustments in segment profit includes negative ¥45 million in elimination ofintersegment transactions, and negative ¥806 million in non-allocable operating expenses. Non-allocable operating
expenses are administrative costs of our Group.
2. Segment profits are adjusted to operating income in the quarterly consolidated statement of income.

2. Information Regarding Changes, etc., to Reporting Segments(Application of Accounting Standards, etc., Related to Revenue Recognition)
As described above in “(Change in Accounting Policy) - (Application of AccountingStandards, etc., Related to Revenue Recognition),” the Group has applied the AccountingStandard for Revenue Recognition from the beginning of the consolidated first quarter underreview. Due to a change in the method of accounting treatment for revenue recognition,
similar changes have been made to the methods of measuring profit and loss in each businesssegment.
As a result, when compared to the previous method of accounting treatment, in the
consolidated first quarter under review, segment net sales decreased by ¥696 million in theJapan Business segment and decreased by ¥318 million in the China Business segment. Also,
segment profit decreased by ¥74 million in the Japan Business segment.
10