Summary of Financial Results
for the Second Quarter of Fiscal Year Ending January 2016
[Japanese Standards] (Consolidated)
September 7, 2015
Name of Listed Company: Pigeon Corporation (Stock code: 7956)
Listing: First Section, Tokyo Stock Exchange
Website: www.pigeon.co.jp
Representative: Shigeru Yamashita (President and COO)
Contact person: Tsutomu Matsunaga (Managing Officer, Corporate Planning & Administration Division)/Tel: +81-3-3661-4188
Scheduled Filing Date of Quarterly Report: September 11, 2015
Scheduled Commencement Date of Dividend Payments: October 13, 2015
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)

1. Consolidated Business Performance for the First Half of Fiscal Year Ending
January 31, 2016 (February 1 to July 31, 2015)(1) Consolidated Operating Results (cumulative)
Net Sales
2Q ended July 31, 2015

46,522(Millions of yen, rounded down, % figures denote year-on-year change)
Operating Income
Ordinary Income
Net Income

18.6%

7,733

7,873

32.2%

5,282

29.7%

2Q ended July 31, 2014
39,229
7.1%
5,985
24.3%
5,957
(Note) Comprehensive income: 2Q ended July 31, 2015
¥5,913 million (118.9%)
2Q ended July 31, 2014
¥2,701 million (47.9% negative)

15.4%

4,074

30.5%

Net Income per Share (¥)
2Q ended July 31, 2015

29.2%

Diluted Net Income Per
Share (¥)

44.11

－

2Q ended July 31, 2014
34.00－
(Note) Our Group carried out a 3-for-1 stock split with respect to its common stock, effective as of May 1, 2015.
The figures for quarterly net income per share are calculated on the assumption that this stock split had been conducted at the
beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total Assets
2Q ended July 31, 2015

Net Assets

76,282

FY ended January 31, 2015
72,367(Reference) Shareholders’ Equity: 2Q ended July 31, 2015
FY ended January 31, 2015

Equity Ratio (%)

50,75865.0

47,297¥49,599 million¥46,164 million

63.8

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

45.00
60.00
FY ended January 31, 2015－－
FY ending January 31, 2016
20.00－
FY ending January 31, 2016
20.00－
(Forecast)(Note) Changes in dividend forecasts to the most recent announcement: Yes
Our Group carried out a 3-for-1 stock split with respect to its common stock, effective as of May 1, 2015.
For the fiscal year ended January 31, 2015, the actual dividend before the relevant stock split is described.

Total
105.0040.00

3. Consolidated Business Performance Forecasts(February 1, 2015 to January 31, 2016)
Net Sales
Millions of Yen(% figures denote year-on-year change from the previous term)
Net Income per
Operating Income
Ordinary Income
Net Income
Share% Millions of Yen% Millions of Yen% Millions of Yen%

Full year
95,50013.5%
15,00017.4%
15,100
13.5%
9,600
13.6%
(Note) Revision of forecasts to the most recent announcement: Yes
Our Group carried out a 3-for-1 stock split with respect to its common stock, effective as of May 1, 2015.

Yen

80.16

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 further information, please refer to “(3) Changes in Accounting Policies, Changes in Accounting-based Estimates, andRestatements” in “2. Issues Regarding Summary Information (Notes)” on page 5.

(4) Number of outstanding shares (common stock)1) Number of shares outstanding at the term-end (including treasury stock)
2Q ended July 31, 2015: 121,653,486
FY ended January 31, 2015: 121,653,486
2) Number of treasury stock for the period-end
2Q ended July 31, 2015: 1,891,387
FY ended January 31, 2015: 1,889,988
3) Number of average shares outstanding during the period (quarter accumulation)
2Q ended July 31, 2015: 119,762,652
2Q ended July 31, 2014: 119,830,395(Note) Our Group carried out a 3-for-1 stock split with respect to its common stock, effective as of May 1, 2015. The number ofshares listed above was calculated on the assumption that this stock split had been conducted at the beginning of the fiscal
year ended January 31, 2015.

* Indication regarding the situation of quarterly review procedures
Financial results for this second quarter is not the subject of a quarterly review procedure based on the Financial
Instruments and Exchange Act, and at the point in time when these financial results were disclosed, review
procedures for quarterly financial statements based on the Financial Instruments and Exchange Act had not been
completed.
* 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 thesection “(3) Explanation of Consolidated Performance Forecast and Other Future Predictions” in “1. Qualitative
Information Regarding the Financial Results for the Current Quarter” on page 2 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 Second Quarter of Fiscal Year Ending January 2016

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. Issues Regarding Summary Information (Notes)............................................................................. 5(1) Significant Changes in Subsidiaries During the Period Under Review ..................................... .5(2) Application of Any Accounting Procedures Specific to Preparation of Quarterly
Consolidated Financial Statements ............................................................................................ .5(3) Changes in Accounting Policies, Changes in Accounting-based Estimates,
and Restatements ........................................................................................................................ 5
3. Quarterly Consolidated Financial Statement ................................................................................... 6(1) Quarterly Consolidated Balance Sheets ...................................................................................... 6(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statement ofComprehensive Income .............................................................................................................. 8
Quarterly Consolidated Statements of Income(Scope of Consolidation of Second Quarter) .......................................................................... 8
Quarterly Consolidated Statement of Comprehensive Income(Scope of Consolidation of Second Quarter)... .......................................................................... 9(3) Quarterly Consolidated Statements of Cash Flows... ................................................................ 10(4) Notes on Consolidated Financial Statement .............................................................................. 12(Notes Regarding Going Concern Assumptions) ...................................................................... 12(Additional Information) ......................................................................................................... 12(Notes Regarding Substantial Changes in Shareholders’ Equity) ............................................. 12(Segment Information) .............................................................................................................. 13

1

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2016

1. Qualitative Information Regarding the Financial Results for the Current Quarter(1) Explanation of Business Performance
During the consolidated six-month period under review, the global economy continued to recover at
a gradual pace, despite lingering concerns regarding the European sovereign debt crisis and aslowdown in the economic growth of China. This favorable trend was due to factors such as arecovery in exports, backed by the personal consumption increase boosted by the improvement of
the employment conditions in the United States, and a weaker euro in the Eurozone. The Japanese
economy continued to show a gradual recovery, thanks to a gradual increase in capital investment
supported by improvement in corporate earnings, as well as to signs of a recovery in personal
consumption due to the improvement of employment and income conditions. Amid such economic
circumstances, our Group has issued its fifth medium-term business plan (for the period between
the fiscal year ended January 2015 and the fiscal year ending January 2017), and has put up thefollowing slogan, “Pursuing world class business excellence, think globally, plan agilely, andimplement locally”. As it is the second year of the period targeted by the fifth medium-termbusiness plan, we have been making efforts toward further growth. In addition, as our business
policy, our Group aims at expanding our business and improving management quality by providing
the following “Vision 2016”.
< Vision 2016 >i) Strengthening brand power (Global Number One manufacturer of baby and child careproducts)ii) Reinforcing the management system toward a sustainable growth of our Group’s businessiii) Improving management quality by focusing on cash flowiv) Fostering our Group’s global personnel, establishing human resources systems and promoting
its employees’ activitiesv) Further enhancing corporate value
During the consolidated period under review we have been developing the above business policies,
and strategies for each business and function. As a result, net sales for the period amounted to¥46,522 million (up 18.6% YOY), due to factors including healthy business expansion in ourOverseas Business centered on operations in China and Domestic Baby and Mother Care Business.
Regarding earnings, operating income rose to ¥7,733 million (up 29.2% YOY), ordinary income
recorded ¥7,873 million (up 32.2% YOY), and net income was ¥5,282 million (up 29.7% YOY),
which means each significantly exceeded the previous corresponding result. This was due to a
reduction of approximately 1.7 percentage point in the sales cost ratio from the previous same
period, as a result of increased sales and efficient utilization of production bases accompanying
business expansion.
“Domestic Baby and Mother Care Business”, “Child-rearing Support Services”, “Health Care andNursing Care Business”, “Overseas Business” and “China Business” have been identified as ourGroup’s reporting segments. Each segment is outlined below.
Domestic Baby and Mother Care BusinessNet sales of the segment amounted to ¥14,216 million (up 14.7% YOY). Segment profits increasedto ¥2,296 million (up 13.2% YOY) which exceeded the previous corresponding result despite theincrease in selling, general and administrative expenses due to marketing activities for new products.
In January, we launched “Runfee”, a new stroller that easily overcomes level differences, and in
July, we added two new colors for this fall/winter season. Sales and market share are expandingsmoothly. Moreover, during the period under review, we have held a number of events planned as apart of our direct communications program such as our “Breast Feeding Seminar” for women2

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2016

expecting to give birth in the near future and a seminar about breastfeeding while parenting for
health care professionals, organized 6 times. A total of approximately 670 women have participated.
We updated product information and made continuing progress in providing to our customers amore easily accessible “Pigeon Info” website that supports women during pregnancy, in childbirth,and those raising children.
Child-rearing Support Services
Net sales of the segment amounted to ¥3,374 million (up 0.3% YOY). Segment profits decreased to¥70 million (down 27.0%) due to a rise in the sales cost ratio. For in-company child-care facilities,
we received one consignment and started the service. While improving the service quality, we havebeen working on management of these facilities.
Health Care and Nursing Care BusinessNet sales of the segment amounted to ¥3,466 million (down 1.6% YOY), while the revision of thenursing care insurance system and the competition in the market of consumables continued tointensify. Segment profits decreased to ¥127 million (down 39.8% YOY) due to an increase in
selling, general and administrative expenses from enhancing sales activities. In February, we
released in this segment “assista ease I and II” wheel chairs for seniors. The assista ease I and II
allow the posture to be kept straight and enables comfortable sitting for a long period of time. In
addition, in April, we launched a new citrus green scent for the indoor “Kaori Kakumei” deodorantseries. The spray type room air freshener eliminates indoor odors caused by problems with leaking
and leaves behind a nice scent. Our Group will continue to focus on marketing products and ensure
sales activities focusing on facility routes are carried out considerately.
Overseas BusinessIn this segment, although management of regions including Korea, Hong Kong, Taiwan, and Russia
was transferred to the China Business Division from this consolidated fiscal year under review, net
sales of the segment amounted to ¥11,980 million (up 13.9% YOY). Segment profits increased to¥2,625 million (up 16.1% YOY). In India, we are continuing to actively expand sales and marketing
activities with a view to establish our brand in the market. In May, we began shipping goods fromour new local production plant. So we will continue to tune up the product supply organization evenmore, starting from our flagship nursing bottles and nipples, and to strengthen the sales/distribution
system. Furthermore, we continue to aim at expanding our business in North America and Europe
by reinforcing the organizational system of each sales branch based in countries such as Englandand Germany. Other efforts in this direction include expanding our product categories centered on
nursing bottles, which were sold anew last year, in addition to breastfeeding-related products suchas our flagship nipple cream and breast pads.
China BusinessNet sales of the segment amounted to ¥16,600 million (up 51.6% YOY). Although the selling,
general and administrative expenses increased as a result of marketing activities conducted alongwith an active expansion of the business, the segment profits increased to ¥4,798 million (up 45.2%
YOY). This segment recorded a significant increase in net sales and segment profits from theprevious year, assisted mainly by the effects of steady growth in product categories such as nursing
bottles and nipples, due to continuous reinforcement of marketing and sales promotion activities in
addition to transferring management of regions including Korea, Hong Kong, Taiwan, and Russia
to the China Business Division from the Overseas Business Division. In May, we launched newskin care products. We aim at expanding our business even more, by also focusing on productcategories other than our flagship nursing bottles and nipples, such as renewing disposable diapers
to get an even greater level of absorption.
3

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2016

Other Businesses
Net sales of the segment amounted to ¥633 million (down 3.2% YOY), and the segment profits
decreased to ¥73 million (down 14.9% YOY).
(2) Explanation of Financial Position(Assets)
As of July 31, 2015, our Group recorded total assets of ¥76,282 million, up ¥3,915 million from theprevious consolidated fiscal year ended January 31, 2015. Current assets had an increase of ¥3,284
million, and fixed assets had an increase of ¥631 million.
Current assets increased mainly due to an increase in cash and deposits of ¥1,159 million, an
increase in notes and accounts receivable - trade of ¥1,111 million, and an increase in merchandiseand finished goods of ¥689 million.
Fixed assets increased mainly due to an increase in buildings and structures of ¥218 million and anincrease in machinery and transportation equipment included in other tangible fixed assets of ¥537
million.
(Liabilities)
As of July 31, 2015, our Group recorded total liabilities of ¥25,524 million, up ¥454 million fromthe previous consolidated fiscal year ended January 31, 2015. Current liabilities had an increase of¥1,236 million, and fixed liabilities had a decrease of ¥782 million.
Current liabilities increased mainly due to an increase in notes and accounts payable – trade of ¥644
million and an increase in current portion of long-term loans payable of ¥942 million despite thedecrease in income taxes payable of ¥177 million.
Fixed liabilities decreased mainly due to a decrease in long-term borrowings of ¥928 million
despite an increase in deferred tax liabilities included in other fixed liabilities of ¥73 million.
(Net Assets)
As of July 31, 2015, our Group recorded total net assets of ¥50,758 million, up ¥3,461 million fromthe previous consolidated fiscal year ended January 31, 2015.
Net assets increased mainly due to an increase in retained earnings of ¥2,887 million and anincrease in foreign currency translation adjustment of ¥533 million.
(3) Explanation of Consolidated Performance Forecast and Other Future Predictions
For the “Fifth Medium-Term Business Plan (for the period between fiscal year ending January 2015
and fiscal year ending January 2017)”, our Group has put up the following slogan, “Pursuing worldclass business excellence, think globally, plan agilely, and implement locally.” We will further
develop and enhance our business operating system, while pursuing in the improvement ofmanagement quality and steadily implementing the measures grounded on the newly formulated
strategies for each business segment and the functional strategy that serves as the foundation
thereof.
During the consolidated fiscal year under review, the second year of our fifth medium-term businessplan, we will continue to expand and enrich business in the existing markets concentrated in China
and North America regarding the overseas business which our Group positions as a growing field,
even though it is important to consider the trends in the American financial measures and the crude
oil price, the future of Europe, China and emerging economies as well as geopolitical risks.
Moreover, we will strive to ensure completion of our plans through actively pursuing new markets.
The performance forecast for the entire year, released on March 2, 2015, has been revised upwardon September 7, 2015, based on the performance of the consolidated six-month period under review.
Therefore, we forecast net sales of ¥95,500 million (up 3.8% compared with the previous forecast),
operating income of ¥15,000 million (up 7.9% compared with the previous forecast), ordinary
income of ¥15,100 million (up 7.9% compared with the previous forecast) and net income of¥9,600 million (up 7.9% compared with the previous forecast).
4

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2016

2. Issues Regarding Summary Information (Notes)(1) Significant Changes in Subsidiaries During the Period Under Review
Not applicable.
(2) Application of Any Accounting Procedures Specific to Preparation of Quarterly
Consolidated Financial Statements
Not applicable.
(3) Changes in Accounting Policies, Changes in Accounting-based Estimates, andRestatements
Changes in Accounting Policies(Application of Accounting Standard, etc. Regarding Retirement Benefits)
Regarding the “Accounting Standard for Retirement Benefits” (ASBJ Statement No.26, May 17,
2012. Hereinafter, referred to as “Retirement Benefits Accounting Standard”) and “Guidance on
Accounting Standard for Retirement Benefits” (ASBJ Guidance No.25, May 17, 2012. Hereinafter,
referred to as “Guidance on Retirement Benefits Accounting Standard”), the provisions stipulated in
the main clause of Article 35 of the Retirement Benefit Accounting Standard and in the main clauseof Article 67 of the Guidance on Retirement Benefits Accounting Standard has been applied since
the first quarter of the consolidated current term, and calculation methods for retirement benefit
obligations and service costs were reviewed. As a result, attribution of expected benefit payments
was changed from the straight-line basis to salary amount basis. At the same time, the determination
method of the discount rate was changed from the discount rate determined based on the average
period up to the estimated timing of benefit payment to the discount rate reflecting the estimatedtiming of each benefit payment.
There is no impact on retained earnings and gain or loss due to this change at the beginning of the
fiscal year.

5Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2016

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)
At January 31, 2015
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
Short-term borrowings
Current portion of long-term loans payable
Income taxes payable
Accrued bonuses to employees
Reversal of reserve for returned products
Provision for loss on litigation
Other current liabilities
Total Current Liabilities
II. Fixed Liabilities:
Long-term borrowings
Provision for employees' retirement benefits
Provision for directors and corporate
auditors' retirement benefits
Other fixed liabilities
Total Fixed Liabilities
Total Liabilities

6

At July 31, 2015

21,590,935
15,278,435
5,899,152
242,058
2,357,688
1,689,971(31,073)
47,027,168

22,750,631
16,389,440
6,588,326
266,094
2,424,209
1,927,160(34,598)
50,311,264

6,802,457
6,138,953
8,441,947
21,383,358

7,021,428
6,125,793
8,881,406
22,028,628

302,173
1,422,182
1,724,355

203,254
1,478,457
1,681,711

2,267,439(35,242)2,232,197
25,339,911
72,367,080

2,299,128(37,869)
2,261,258
25,971,598
76,282,862

4,462,757
890,205
1,200,000
1,535,554
783,744
46,207
38,5716,315,702
15,272,743

5,107,657
1,112,304
2,142,865
1,358,356
839,229
53,22039,1795,856,919
16,509,731

5,928,235
315,383

5,000,000
329,671

342,566

392,482

3,210,936
9,797,120
25,069,864

3,292,160
9,014,314
25,524,045

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2016

(Thousands of yen)
At January 31, 2015

At July 31, 2015

NET ASSETS
I. Shareholders’ Equity:
Capital stock

5,199,597

5,199,597

Capital surplus

5,180,246

5,180,246

Retained earnings

31,383,875

34,271,375

Treasury stock(942,114)(946,436)

Total Shareholders’ Equity

40,821,604

43,704,782

36,81155,058Foreign currency translation adjustment

5,306,072

5,839,626

Total Accumulated Other Comprehensive Income

5,342,883

5,894,684

III. Minority Interests

1,132,727

1,159,348

Total Net Assets

47,297,215

50,758,816

Total Liabilities and Net Assets

72,367,080

76,282,862

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

7

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2016

(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statement ofComprehensive Income
Quarterly Consolidated Statements of Income(Scope of Consolidation of Second Quarter)(Thousands of yen)

I. Net Sales
II. Cost of Sales
Gross profit
Reversal of reserve for returned products
Transfer to reserve for returned products
Adjusted gross profit
III. Selling, General and Administrative Expenses
Operating Income
IV. Non-operating Income:Interest income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other non-operating income
Total Non-operating Income
V. Non-operating Expenses:
Interest expense
Sales discounts
Foreign exchange losses
Other non-operating expenses
Total Non-operating Expenses
Ordinary Income
VI. Extraordinary Income:Gain on sales of fixed assets
Total Extraordinary Income
VII. Extraordinary Loss:
Loss on sales of fixed assets
Loss on disposal of fixed assets
Total Extraordinary Loss
Income before Income Taxes
Income Taxes - current
Income Taxes - deferred
Total Corporate Income Tax
Income before Minority Interests
Minority Interests in Income
Net Income

8

Six months ended
July 31, 2014
39,229,251
21,524,123
17,705,128
56,59459,577
17,702,145
11,716,300
5,985,845

Six months ended
July 31, 2015
46,522,451
24,725,666
21,796,785
46,17041,18521,801,770
14,067,791
7,733,97883,938

147,618

1,955

24,234－
97,683
183,577

4,607
187,263363,724

30,245
134,261
29,774
17,245211,526
5,957,896

40,952167,016－
15,898
223,867
7,873,836

1,432
1,432

7,247
7,247

1,778
20,731
22,5105,936,818
1,749,125
29,346
1,778,471
4,158,346

150
4,898
5,049
7,876,034
2,430,495
66,2812,496,777
5,379,257

83,881
4,074,465

96,486
5,282,770

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2016

Quarterly Consolidated Statement of Comprehensive Income(Scope of Consolidation of Second Quarter)

Income before Minority Interests
Other Comprehensive Income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total Other Comprehensive Income

Quarterly Comprehensive Income

Six months ended
July 31, 2014
4,158,346

Six months ended
July 31, 2015
5,379,257(265)(1,456,569)(1,456,835)
2,701,511

18,247516,404
534,651
5,913,908

2,640,702

5,834,571

60,80879,337(Break down)

Quarterly comprehensive income on parent
company
Quarterly comprehensive income on minority
interests(Thousands of yen)

9

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2016(3) Quarterly Consolidated Statements of Cash Flows(Thousands of yen)Six months ended
July 31, 2014
I. Cash Flow from Operating Activities
Income before Income Taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in accrued bonuses to employees
Increase (decrease) in provision for employees'
retirement benefits
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors andcorporate auditors' retirement benefits
Interest and dividend income
Share of (gain) loss of entities accounted for using
equity method
Interest expenses
Loss (gain) on sales of property
Loss on disposal of property
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable trade
Increase (decrease) in accounts payable
Increase (decrease) in accrued consumption taxes
Decrease (increase) in claims provable inbankruptcy/rehabilitation
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net Cash Provided by Operating Activities
II. Cash Flows from Investing Activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Purchase of insurance funds
Proceeds from cancellation of insurance funds
Payments of loans receivableCollection of loans receivable
Payments for lease deposits
Collection of lease deposits
Other
Net Cash Used in Investing Activities

10

Six months ended
July 31, 2015

5,936,818
887,064
87,442
27,263(30,855)

7,876,034
1,131,160
101,2365,616
54,158

6,193

－

－

15,423

4,101

49,916(85,137)(150,076)(1,955)(24,234)

30,245346
20,731

40,952(7,096)
4,898(2,134,689)

948,573(661,290)(717,425)

262,972

567,30255,636334,158

42,742(51,185)20(3,117)(324,786)
4,414,282
73,331(5,518)(1,885,828)
2,596,266(203,634)
7,784,097
284,279(82,241)(2,622,540)
5,363,595(1,607,232)
2,216(89,594)(329)(3,168)
－
(865)
1,117
(31,058)
14,923233(1,713,756)(2,062,525)
33,894(168,260)(1,046)(1,151)624(1,239)1,147(11,091)
9,623(17,765)(2,217,790)

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2016

(Thousands of yen)Six months ended
July 31, 2014
III. Cash Flows from Financing Activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Payment of cash dividends
Cash dividends paid to minority shareholders
Purchase of treasury stock
Other
Net Cash Provided by (Used in) Financing
Activities
IV. Effect of Exchange Rate Change on Cash and Cash
Equivalents
V. Net Increase (Decrease) in Cash and Cash
Equivalents
VI. Cash and Cash Equivalents at Beginning of Period
VII. Cash and Cash Equivalents at End of Period

11

Six months ended
July 31, 2015

1,153,675(1,000,000)
5,000,000(4,860)(2,198,754)(44,693)(485,068)(5,898)887,720(682,195)－－(2,394,623)(52,716)(4,321)(6,513)2,414,399(2,252,649)(458,859)

266,541

2,838,050

1,159,696

13,102,606
15,940,657

21,590,935
22,750,631

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2016(4) Notes on Consolidated Financial Statement(Notes Regarding Going Concern Assumptions)Not applicable.
(Additional Information)(Modification of Amount of Deferred Tax Assets and Deferred Tax Liabilities Due to Tax Rate
Change of Corporate Income Tax, etc.)
The Act on the Partial Revision of the Income Tax Act, etc. (Act No. 9 of 2015) and the Act on
Partial Revision of Local Tax Act, etc. (Act No. 2 of 2015) were issued on March 31, 2015, andreductions of corporate income tax, etc. are applied to the consolidated fiscal year starting from
April 1, 2015. Due to the change, the statutory effective tax rate used to calculate deferred tax assets
and deferred tax liabilities was changed from 35.64%. 33.10% is applied to temporary differences,
etc. that are expected to be dissipated in the consolidated fiscal year starting on February 1, 2016
while 32.34% is applied to temporary differences, etc. that are expected to be dissipated in the
consolidated fiscal year starting on February 1, 2017 and later.
The impact due to this tax rate change is minor.
(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable.

12Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2016

(Segment Information)
Six months ended July 31, 2014
1. Information Regarding Net Sales and Profit (Loss) in Each Reporting Segment(Thousands of yen)
Reporting Segment

Net sales
Net sales toexternalcustomers
Internal sales
or exchange
betweensegments
Total
Segment profit

Domestic
Health Care
Child-rearing
Baby andand Nursing
SupportMother Care
Care
Services
Business
Business

Overseas
Business

12,391,921

3,364,614

3,521,826

8,647,332 10,649,378 38,575,074

－

－

－

12,391,921

3,364,614

2,029,703

96,301

654,177

Total

39,229,251－ 39,229,251－

3,521,826 10,522,105 10,951,697 40,752,165

654,177

41,406,342 (2,177,091) 39,229,251

86,923

7,990,571 (2,004,726)

2,261,681

302,318

Sub Total

Other
Businesses(Note 1)

2,177,091

212,313

1,874,772

China
BusinessAmountAccounted on
Quarterly
Adjustments
Consolidated(Note 2)
Statements ofIncome(Note 3)3,303,648

7,903,647

2,177,091 (2,177,091)－

5,985,845(Notes)1. The “Other Businesses” classification refers to businesses not included in the reporting segments, which are mainly ourGroup’s production subsidiaries manufacturing, and those selling products to companies outside our Group.
2. The negative amount of ¥2,004,726 thousand from adjustments in segment profits includes a ¥51,290 thousand inelimination of intersegment transactions, and a negative ¥2,056,016 thousand in non-allocable operating expenses.
Non-allocable operating expenses are mainly administrative costs of our Group.
3. Segment profits are adjusted to operating income in the quarterly consolidated statements of income.

Six months ended July 31, 2015
Information Regarding Net Sales and Profit (Loss) in Each Reporting Segment(Thousands of yen)
Reporting Segment

Net sales
Net sales toexternalcustomers
Internal sales
or exchange
betweensegments
Total
Segment profit

Sub Total

Other
Businesses(Note 1)

Total

8,525,482 16,306,365 45,889,398

633,052

46,522,451

Domestic
Health Care
Child-rearing
Baby andand Nursing
SupportMother Care
Care
Services
Business
Business

Overseas
Business

14,216,389

3,374,549

3,466,611－－－

14,216,389

3,374,549

2,296,752

70,313

46,522,451－

3,749,312 (3,749,312)－

3,466,611 11,980,728 16,600,432 49,638,711

633,052

50,271,764 (3,749,312)

46,522,451

73,975

9,992,081 (2,258,102)

7,733,9782,625,079

294,066－

3,749,312

127,774

3,455,246

China
BusinessAmountAccounted on
Quarterly
Adjustments
Consolidated(Note 2)
Statements ofIncome(Note 3)

4,798,185

9,918,105(Notes)1. The “Other Businesses” classification refers to businesses not included in the reporting segments, which are mainly ourGroup’s production subsidiaries manufacturing, and those selling products to companies outside our Group.
2. The negative amount of ¥2,258,102 thousand from adjustments in segment profits includes a ¥12,829 thousand inelimination of intersegment transactions, and a negative ¥2,270,932 thousand in non-allocable operating expenses.
Non-allocable operating expenses are mainly administrative costs of our Group.
3. Segment profits are adjusted to operating income in the quarterly consolidated statements of income.
4. Due to the transfer of management of businesses in regions including Korea, Hong Kong, Taiwan, and Russia from
“Overseas Business” to “China Business” from this consolidated fiscal year under review, intersegment transactions
between “Overseas Business” and “China Business” increased.

13