Summary of Financial Results
for the First Quarter of Fiscal Year Ending December 2022
[Japanese Standards] (Consolidated)
Name of Listed Company: Pigeon Corporation (Stock code: 7956)
Listing: Prime Market, 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 13, 2022
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 and institutional investors)

May 12, 2022

1. Consolidated Business Performance for the First Quarter of Fiscal YearEnding December 31, 2022 (January 1 to March 31, 2022)(1) Consolidated Operating Results (cumulative)

1Q ended March 31, 2022

(Millions of yen, rounded down, % figures denote year-on-year change)
Net Income
Net Sales
Operating Income
Ordinary Income
Attributable to
Owners of Parent
21,714
1.7
2,994
4.7
3,971
15.0
2,617
30.3

1Q ended March 31, 2021
21,359(6.5)(Note) Comprehensive income: 1Q ended March 31, 2022
1Q ended March 31, 2021

2,861
(15.9)
3,454¥4,997 million (20.0%)¥4,165 million (245.2%)

Net Income per Share (¥)(10.6)

21.88－

1Q ended March 31, 2021

16.79

－

Total Assets

1Q ended March 31, 2022

Net Assets

98,969Equity Ratio (%)

77,32075.0

FY ended December 31, 2021
98,042
76,810(Reference) Shareholders’ Equity: 1Q ended March 31, 2022
¥74,259 million
FY ended December 31, 2021 ¥73,885 million

75.4

2. Cash Dividends(30.0)

Diluted Net Income per
Share (¥)

1Q ended March 31, 2022

(2) Consolidated Financial Position

2,008

Annual Dividend (¥)
1Q-end2Q-end3Q-end37.00
FY ended December 31, 2021－
FY ending December 31, 2022－
FY ending December 31, 2022
38.00
(Forecast)(Note) Changes in dividend forecasts from the most recent announcement: None

Year-end

Total

－

37.00

74.00

－

38.00

76.00

3. Consolidated Business Performance Forecasts for the Fiscal YearEnding December 31, 2022 (January 1 to December 31, 2022)
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
98,7006.0
14,2006.5
14,300(Note) Revision of forecasts from the most recent announcement: None

% Millions of Yen

(2.4)

9,500

%

8.1

Yen

79.41

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, 2022: 121,653,486
FY ended December 31, 2021: 121,653,486
2) Amount of treasury stock at the period-end
1Q ended March 31, 2022: 2,007,368
FY ended December 31, 2021: 2,018,072
3) Average number of shares outstanding during the period (quarter accumulation)
1Q ended March 31, 2022: 119,637,155
1Q ended March 31, 2021: 119,635,598(Note) Amount of treasury stock at the period-end includes Company shares held by the board incentive plan (BIP) trust forcompensation of directors (113,956 shares as of 1Q ended March 31, 2022; 124,800 shares as of FY ended December
31, 2021). 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 2022

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 ............................................................................................... 3(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(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 2022

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 and global economies continued to
face a number of challenges. In the Japanese economy, the impact of the COVID-19 pandemic
continued to impose difficult conditions, though signs of recovery emerged in some areas. While theimpact of the pandemic eased in countries around the world, including Japan, here and there the virus
continued to spread and a number of cities suffered lockdowns. Moreover, conditions in Ukraine, theprice of crude oil and supply-chain issues all fed a sense of uncertainty. As such, the way forward for
the Japanese and global economies remains unclear.
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 final 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, the impact on business results of the COVID-19
pandemic was tempered by weakening yen exchange rates. Net sales amounted to ¥21,714 million(up 1.7% YOY). In earnings, gross profit margin improved 0.6 points from the previous fiscal year,
more than offsetting an increase in selling, general and administrative expenses. Operating income
reached ¥2,994 million (up 4.7% YOY), while ordinary income rose to ¥3,971 million (up 15.0%
YOY) and net income attributable to owners of parent climbed to ¥2,617 million (up 30.3% YOY).
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$: 116.35 yen (106.04 yen)
・1 CNY: 18.32 yen (16.36 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.
Japan BusinessThis segment consists of businesses such as the Baby Care Business, Child Care Service Business,and Health & Elder Care Business. Net sales for the entire segment amounted to ¥8,846 million(down 9.0% YOY). Segment profit decreased compared to the same period of the previous fiscal
year to ¥543 million (down 10.0% YOY) due to factors such as a decrease in gross profit caused by
the decline in net sales.
Although sales of bottom wipes and certain other consumables struggled amid price competition,
sales of nursing bottles and breast pumps, which are core products of the Group, advanced YOY. In
the Japan Business, in February 2022 we overhauled and relaunched sales of the “Bonyu Jikkan®”nursing bottle series, the Group’s mainstay product line, for the first time in 11 years. Also in
February, the Group renewed and relaunched “Pigeon Basic Skin Care,” a series of skin-care
products for babies consisting of body foam soap, foam shampoo, baby bath wash, baby clear lotion,baby milk lotion, baby cream and baby clear oil.
The Group was also active in direct communications. We offered live presentations of theBreastfeeding Seminar, a maternity seminar that provides a fun way to learn about breastfeeding.
Over 700 expectant mothers and others attended these seminars. For medical professionals, the2

Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2022

Group presented an online seminar that attracted over 100 viewers. In order to alleviate the anxiety of
mothers and fathers in the era of living with COVID-19, we are continuing to enhance support
content through our website and SNS. We will also continue to make further improvements according
to the needs of our customers in the contents of “Pigeon Info,” which is a website that supports
women during pregnancy, childbirth, and childcare.
In some products for health and elder care, net sales decreased. Among the factors contributing to thisresult was a reshuffle of the category’s product lineup, which began in the previous fiscal year. Goingforward, the Group will thoroughly implement measures such as bolstering sales activities withrespect to retail outlets, elder-care facilities and other partners and improving the quality of elder-careservices.
Regarding child care service, during the consolidated first quarter under review, we currently
provide services at 64 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 ¥7,892 million (up 2.7% YOY). Segment profit increased to¥2,532 million (up 4.0% YOY), partly due to higher gross profit YOY.
In Mainland China, net sales declined YOY on a local-currency basis. Shipments and other results
for the “Shizen Jikkan” nursing bottle series (marketed as “Bonyu Jikkan®” in Japan) proceeded ona firm trend, following an overhaul and start of advance sales in September 2021. However,
localized outbreaks of COVID-19 were met with lockdowns, severely impacting production,
shipment and other activities.
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 ¥3,069 million (up 6.9% YOY), and segment profit increased
to ¥514 million (up 44.4% YOY).
This segment is responsible for operations in the ASEAN region and India. Here the Groupreorganized and relaunched its sales and marketing activities on a “living with COVID-19” basis,
despite some lingering impact of COVID-19, focusing on sales outlets. Net sales and profits bothrose. Moving forward, we will continue to promote the development and launch of products for theupper-middle class, and actively develop sales and marketing activities with the aim of achieving
market penetration for the Group brands.
Lansinoh BusinessNet sales of the segment amounted to ¥3,551 million (up 13.9% YOY), while segment profit
decreased to ¥168 million (down 47.1% YOY).
In North America, although product arrivals and shipments continued to be delayed due todisruptions in logistics, sales in the e-commerce channel were strong. Sales were favorable fornipple care creams and the new product category of products for care before and after childbirth.
Sales of certain consumables declined YOY, however, amid intensifying competition.
Profits were down year-on-year. Logistical costs such as marine transportation expenses persisted at
a high level, affecting unit costs, shipping expenses and other factors. Vigorous marketing activities
also contributed to expenses. Moving forward, in order to further expand business in Europe, China,
and other regions 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

3

Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2022

(Assets)
As of March 31, 2022, our Group recorded total assets of ¥98,969 million, up ¥926 million from theprevious consolidated fiscal year ended December 31, 2021. Current assets decreased by ¥921
million, while fixed assets increased by ¥1,848 million.
Current assets decreased mainly due to a decrease in cash and deposits of ¥4,034 million, despite
increases in merchandise and finished goods of ¥1,789 million and in other current assets of ¥593
million.
Fixed assets increased mainly due to increases in buildings and structures under tangible fixed
assets of ¥1,155 million, in other tangible fixed assets of ¥429 million, and in other intangible fixed
assets of ¥291 million.
(Liabilities)
As of March 31, 2022, our Group recorded total liabilities of ¥21,648 million, up ¥416 million fromthe previous consolidated fiscal year ended December 31, 2021. Current liabilities increased by¥1,046 million, while fixed liabilities decreased by ¥629 million.
Current liabilities increased mainly because of an increase in notes and accounts payable - trade of¥1,184 million and an increase in accrued bonuses to employees of ¥127 million, despite a decreasein other current liabilities of ¥243 million.
Fixed liabilities decreased mainly because other fixed liabilities decreased by ¥729 million.
(Net Assets)
As of March 31, 2022, our Group recorded total net assets of ¥77,320 million, up ¥510 million fromthe previous consolidated fiscal year ended December 31, 2021.
Net assets increased mainly due to an increase in foreign currency translation adjustment of ¥2,166
million, despite a decrease in retained earnings of ¥1,813 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 ended 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 2022

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)

At December 31, 2021
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 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, 2022

35,21816,253
8,723
623
3,359
2,270
(194)
66,254

31,184
16,65010,512
731
3,595
2,863
(204)
65,332

9,125
7,272
10,69527,093

10,281
7,326
11,12428,733

534
2,037
2,572

515
2,328
2,844

2,123
(0)
2,122
31,78898,042

2,059
(0)
2,058
33,636
98,969

4,087
1,623
1,180
882

5,271
1,672
1,126
1,010

18

2

9
7,268
15,072

9
7,025
16,118

478
313
5,367
6,159
21,232

550
340
4,638
5,529
21,648

Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2022

(Millions of yen)
At December 31, 2021

At March 31, 2022

NET ASSETS
I. Shareholders’ Equity:
Capital stock

5,199

5,199

Capital surplus

5,179

5,154

Retained earnings

61,16359,350Treasury stock(1,479)(1,433)

Total Shareholders’ Equity

70,062

68,2701616Foreign currency translation adjustment

3,805

5,972

Total Accumulated Other Comprehensive Income

3,822

5,988

III. Non-controlling Interests

2,925

3,061

Total Net Assets

76,81077,320Total Liabilities and Net Assets

98,042

98,969II. 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 2022

(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
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
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 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, 2021
21,359
11,19010,1687,307
2,861

Three months ended
March 31, 2022
21,714
11,243
10,470
7,475
2,994

39
124
18
321
106
610

44
12
470
337
142
1,007

11
6
17
3,454

21
10
31
3,971

0
33
34

4
－
4

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

0
20
－
20
3,954
1,730
(457)
1,273
2,681

18
2,008

63
2,617

Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2022

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(Break down)

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

8

Three months ended
March 31, 2021
2,026

Three months ended
March 31, 2022
2,681

9

(0)

2,129
2,138
4,165

2,316
2,315
4,997

4,059

4,779

106

218

Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2022

(3) Notes on Consolidated Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable.
(Change in Accounting Policy)(Application of Accounting Standards, etc., Related to Fair Value Measurement)
The Group applies the Accounting Standard for Fair Value Measurement (ASBJ Statement No.
30, July 4, 2019; hereinafter, “the Accounting Standard for Fair Value Measurement”) fromthe beginning of the consolidated first quarter under review. In accordance with thetransitional handling stipulated in the Accounting Standard for Fair Value Measurement,
Paragraph 19, as well as the Accounting Standards for Financial Instruments (ASBJ Statement
No. 10, July 4, 2019), Paragraph 44-2, the Group applies the new accounting policy stipulated
in the Accounting Standard for Fair Value Measurement, etc. going forward. This change does
not affect the quarterly consolidated financial statements.
(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 2022

(Segment Information)
Three months ended March 31, 2021
1. 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

8,985

7,626

1,644

3,103

21,359－21,359

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

Internal sales or
exchange between
segments(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.

Three months ended March 31, 2022
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

Net sales
Net sales toexternal customers

AmountAccounted on
Quarterly
Consolidated
Statement of
Income(Note 2)

8,417

7,733

2,014

3,547

21,714－

21,714

428

158

1,054

3

1,645

(1,645)

－

Total

8,846

7,892

3,069

3,551

23,359(1,645)21,714

Segment profit

543

2,532

514

168

3,758

(764)

2,994

Internal sales or
exchange between
segments(Notes)1. The negative amount of ¥764 million from adjustments in segment profit includes negative ¥54 million in elimination ofintersegment transactions and negative ¥819 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.

10