Summary of Consolidated Financial Results
For the Year Ended January 31, 2012
[Japanese Standards] (Consolidated)
March 5, 2012
Company name: Pigeon Corporation (Stock code: 7956)
Listings: First Section, Tokyo Stock Exchange
Website: www.pigeon.co.jp
Representative: Akio Okoshi (President and COO)
Contact: Tsutomu Matsunaga (Managing Officer, Corporate Planning & Administration Division)/Tel: +81-3-3661-4188
Annual General Meeting of Shareholders: April 26, 2012
Year-end dividends: Paid from April 27, 2012
Date of release of Business Report: April 27, 2012
Supplementary materials for the financial results: Yes
Investor conference for the financial results: Yes (For analysts and institutional investors)

1. Consolidated Financial Results (February 1, 2011–January 31, 2012)(1) Performance(¥ millions, rounded down, % figures denote year-on-year change)
Operating Income
Ordinary Income
Net Income

Net SalesYear ended January 31, 2012

59,145

3.7%

5,042

10.9%

4,917

10.9%

3,183

8.7%

Year ended January 31, 2011

57,061

6.8%

4,546

(1.2)%

4,435(3.8)%

2,928

3.1%

Note: Comprehensive income: ¥2,745 million (16.2%) (Year ended January 31, 2012);¥2,362 million (-%) (Year ended January 31, 2011)
Diluted Net
Net Income per
Return on
Income Per
Share (¥)
Equity (%)
Share (¥)
Year ended January 31, 2012159.05－

Year ended January 31, 2011146.31－

Reference: Equity in earnings of affiliates: ¥62 million (January 31, 2012);

Total Assets/
Ordinary
Income (%)

OperatingMargin (%)

11.8

11.4

8.5

11.2

10.8

8.0

¥48 million (January 31, 2011)(2) Financial Position
Total Assets

Net Assets

Equity Ratio (%)

Net Assets
Per Share (¥)

At January 31, 2012

43,772

27,93562.7

1,370.46

At January 31, 2011

42,684

27,04462.2

1,325.71

Reference: Equity: ¥27,428 million (At January 31, 2012);¥26,533 million (At January 31, 2011)(3) Cash Flows
Cash and Cash
Equivalents
at Year-End

Cash Flows From
Operating Activities

Cash Flows From
Investing Activities

Cash Flows From
Financing Activities

Year ended January 31, 2012

4,212

(1,871)(1,776)

7,293

Year ended January 31, 2011

3,206

(3,948)

886

6,827

2. Cash Dividends
Annual Dividends (¥)
1Q

2Q

3Q

Yearend

Fullyear

Total
Dividends
Paid (fullyear) (¥ mil)Consolidated
Payout Ratio(cons.) (%)

Dividends on
Consolidated
Net Assets(cons.) (%)

Year ended January 31, 2011

－

44.00

－

44.00

88.00

1,761

60.1

6.7

Year ended January 31, 2012

－

44.00

－

44.00

88.00

1,761

55.3

6.5

Year ending January 31, 2013
(Forecast)

－

44.00

－

44.00

88.00

1

53.4

3. Forecast for the Year Ending January 2013
Operating
IncomeNet SalesYear ending July 31, 2012(% figures denote year-on-year change)

Year ending January 31, 2013(% indicates changes from thecorresponding previous term)(¥ millions, rounded down)
Net Income
Net Income
per Share (¥)

Ordinary
Income30,100

5.9

2,200

5.4

2,150

4.1

1,400

15.3

69.95

64,300

8.7

5,650

12.0

5,550

12.9

3,300

3.7

164.88

4. Other(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the changes inscope of consolidation): None
(2) Changes in accounting principles, processes, presentation methods, etc.
(a) Changes in accounting standards: Yes(b) Other changes: None
(3) Number of outstanding shares (Ordinary shares):(a) Number of shares outstanding (including treasury stock):
Year ended January 31, 2012: 20,275,581 sharesYear ended January 31, 2011: 20,275,581 shares(b) Number of treasury shares at term-end
Year ended January 31, 2012: 261,696 sharesYear ended January 31, 2011: 261,343 shares(c) Average number of shares during the period
Year ended January 31, 2012: 20,014,068 sharesYear ended January 31, 2011:20,014,516 shares* Note on the current progress of the audit
This summary of consolidated financial results is not included among the audit targets according to the Financial
Instruments and Exchange Act, and the audit regarding the financial statement is being conducted at the time thissummary of consolidated financial results is announced.
*Disclaimer regarding appropriate use of performance forecasts and other important matters
Please refer to page 3 of “(1) Performance Analysis” on “1. Performance”.

2

1. Performance(1) Performance Analysis
1) Performance Overview
During this consolidated fiscal year, at first Japan’s economy showed certain signs of recovery driven by suchfactors as the improvement in corporate earnings, and the improvement of the overseas economies, but due to themassive and wide-ranging damages to the infrastructure caused by the Great East Japan Earthquake that shook thecountry in March, 2011, a large number of companies experienced either complete breakdowns or substantial
declines of their production activities, while the supply chain centering on the disaster-stricken areas was severely
disrupted, resulting in general stagnation of business life. Since then, the situation in general and the consumer
spending in particular have gradually recovered, but there is still a risk for Japanese economy to enter a downward
trend due to such factors as the global economic recession stemming from the financial and monetary instability inEurope, the progressing sharp rise of the yen, and the concerns regarding the declining results of Japanese
corporations operating in Thailand that incurred extensive damages of their production plants caused by the floodthat hit The country this year.
After the occurrence of Great East Japan Earthquake, the Group has also incurred certain damages in two
distribution centers located in Ibaraki Prefecture as well as at the production base of our consolidated subsidiary
PHP Ibaraki, Co., Ltd., resulting in suspension or reduction of operations, but the damage was on a small scaleand limited in range.
Also, although in order to ensure the safety during the flood resulting from the heavy rains that batteredThailand, in October, 2011 the Group had to temporarily reduce and later suspend the operations of THAIPIGEON CO., LTD., which is our local production base in the country, but by the end of November the plant was
already operating normally, and no direct personal or material damages were incurred.
The situation being such, during the first year of the “Fourth medium-term business plan (from January 2012
to January 2014): Achieving global business success through company and individual competence”, the Grouphas been operating primarily focusing on the following objectives.
1) Focus on positive business development in overseas markets, aiming to further grow and expand as a global
company.
2) In our domestic and international operations, seek to further strengthen and improve the profitability of current
existing businesses as well as to work to achieve solid growth in new and developing businesses.
3) Build a global business management system based on the core components of “Fostering Human Resources”
and “Creating new value based on fundamental research.”
During this consolidated accounting year, according to the goals set in the "Fourth medium-term business plan",the Group has defined the tasks of each business segment as follows and has conducted through measures toachieve these tasks.
Domestic Baby and Mother Care Business
By establishing and extending the large merchandise business and promoting the category of women’s care, theGroup will improve profitability in the current fields. Furthermore, the Group will establish and extend the Mamas& Papas business to launch new business in the IT field.
Child-rearing Support Services
The Group will continue steady business development by enriching the personnel development system, extending
services, and further improving child-rearing quality.
Health Care and Nursing Care Business
The Group will restructure the business operation system and take efficient measures to improve brand awarenessand promote the understanding of merchandise. By cultivating priority merchandise categories, the Group will
improve merchandise competitiveness and aggressively find new sales channels.
Overseas Business
The Group will target aggressive investment in proactive business as a growth driver of the Group to extend the
production system and strengthen the business operation system. In China, tie-ups with the current agencies will
be strengthened and new agencies will be fostered. Accompanying the launch of the new Changzhou Factory, theGroup will strengthen the development system and in-house production system. In North America and Europe, the3Group will extend the merchandise category centered on the mOmma brand and develop new markets.
As a result, consolidated net sales for the year amounted to ¥59,145 million, up 3.7% from the previous year. With
respect to earnings, although new investments in plants and equipment were made to promote the expansion offoreign operations, costs decreased due to in-house production and efficient utilization was realized for marketing
expenses, etc. As a result, operating income was ¥5,042 million, up 10.9%, and ordinary income was ¥4,917
million, up 10.9% from the previous year. Net income was ¥3,183 million, up 8.7% from the previous year as¥213 million was accounted as extraordinary loss mainly for repairing facilities and discarding merchandise
damaged by the Great East Japan Earthquake.

2) Segment Review
The business report segments are "Domestic Baby and Mother Care Business," "Child-rearing Support Services,""Health Care and Nursing Care Business," and "Overseas Business." Each segment is outlined below. In
accordance with "Accounting Standards Regarding the Disclosure of Segment Information etc.," the segments
have been changed from "Baby and Child Care segment", "Healthcare segment", and "Other segment") to theabove, starting from this consolidated fiscal year.
Domestic Baby and Mother Care Business
Sales in this segment amounted to ¥24,047 million, down 0.4% year-on-year. Segment income edged up 1.8%, to¥3,677 million. In terms of new products, the Group marketed "MOGUTTOYASAI" as single-meal retortpouched baby foods all enriched with vegetables, "Body Massage Cream" and "Body HIKISHIME Gel"containing hyaluronic acid for skin care during pregnancy and after birth, easy-to-prepare "Range de MUSHIPAN" baby snacks by mixing milk or water, "MAGUMAGU Baby", "MAGUMAGU Spout", "SODACHI OUEN
Sandal YOCHIYOCHI-ANYO/TOKOTOKO-ANYO" baby sandals for selection according to the growth of yourbaby in February 2011, and the "MUSHI-KURURIN OHEYANIOKU Type" insect repellent using naturalingredients in March, and in June newly released an infant seat "SALVAJE " which can be used for children
starting right from birth and that offer high safety and amenity. In August, we launched the new brand "BabyLaundry," a laundry series which is gentle to the skin for mothers and babies, "Skin Thermometer H20—
CHIBION Touch," a thermometer which measures body temperature at the forehead, "Baby Oil Jelly," a gel-typeskin care product, "HAJIMETE no Mask," sanitary masks which can be used from 18 months of age, "Dental
Paste (Medicated)," a low-stimuli toothpaste which can be easily used during pregnancy, and "ONEGAI Origo,"water which is Pigeon’s first specified health food. Furthermore, in October, we launched "Baby Rhythm Breast
Pump—Electric Premium Model," a highly-functional breast pump which replicates lactation rhythms.
Regarding the maternity events we are committed to as part of our direct communications program aimed atstrengthening brand loyalty, although under the influence of the Great East Japan Earthquake we canceled a partof them, we have held 28 such events during the year under review, which a total of about 1,900 people who are
pregnant have participated. Also, the Group has experimentally held two "Pre-maternity events" targeting women
beginning preparations for pregnancy, and has also held three "ante-natal classes" for those who have alreadygiven birth. The number of members of "Pigeon Info", which is a word-of-mouth community site operated by theGroup to assist women during pregnancy, childbirth, and nursing, is increasing satisfactorily with the acquisitionof the newly enrolling members. In the Group's Internet/catalog mail order business, we started sales of a part ofour products at retail shops, making an effort to increase the recognizability of our brand and products among theconsumers.
Child-rearing Support Services
Sales in this segment amounted to ¥5,990 million, up 9.8% year-on-year. Segment income was ¥152 million, up
29.3% year-on-year. Although some of the facilities were temporarily closed as a consequence of the Great East
Japan Earthquake, since April, 2011, the Group has newly started entrusted operation of one licensed nurseryschool and five child-care facilities installed in business establishments, and the number of child-care facilities
operated by the Group as of the end of January, 2012 has reached 191 facilities in total with eightlicensed/certified nursery schools, 116 child-care facilities in hospitals of the National Hospital Organization(independent administrative agency), 41 child-care facilities in business establishments, and a number of earlychildhood education facilities. The Group intends to make a steady effort to develop this business segment further,promoting qualitative improvement of the service in the future.
Health Care and Nursing Care Business
Sales in this segment amounted to ¥6,469 million, down 0.5% year-on-year. Segment income was ¥350 million,
up 213.8% year-on-year, as selling, general and administrative expenses were suppressed by effective and4efficient marketing measures suited to the characteristics of the merchandise and sales channels greatly improving
the profitability of the enterprise. As for the Habinurse brand of elder care products, the Group newly marketed
the "HAGUKI NI YASASHII Brush" and "FUSSOIRI HAMIGAKI Gel" oral care series for the elderly and"YAWARARKAI KAIJO Spoon" nursing-care tableware designed for care providers and care receivers in
February. Regarding the brand "Recoup" for elderly people seeking good health, the Group marketed anenvironmentally-friendly, easy-to-use "NUNO Type KYUSYU Pad" for attachment on regular underwear in thesame month. In the future, the Group will extend business by marketing merchandise through intensive researchon priority categories and acquiring new sales channels, for example by launching mail order business.
Overseas Business
Sales in this segment amounted to ¥21,584 million, up 8.4% year-on-year. Segment income was ¥3,909 million,
up 4.4% year-on-year. In China, the distribution system has been improved and restructured to a stable level. The
sale of various products including newly released ones is also progressing steadily. Net sales exceeded over theprevious year. To strengthen the merchandise supply system, Pigeon Industries (Changzhou) Co., Ltd., located in
Changzhou, Jiangsu Province started operations in January 2011. As the second production site in China, thisconsolidated subsidiary is working steadily, expanding the quantity of output and the number of products handled.
In India, a distribution system is being constructed, the sales network is being extended, and Pigeon Corner isbeing set up as dedicated sales floors, thanks to the activities of the consolidated subsidiary PIGEON INDIA PVT.
LTD. In Malaysia, where the consolidated subsidiary PIGEON SINGAPORE PTE.LTD. acquired the shares of a
local sales agency in January 2011 (company renamed to PIGEON MALAYSIA (TRADING) SDN.BHD. after
stock acquisition), we are striving to extend business on the basis of a newly adopted system. In North America
and Europe, the consolidated subsidiary LANSINOH LABORATORIES,INC. is carrying out sales activities
steadily. Including the mOmma business that was acquired by the subsidiary in December 2010, the Group willfurther promote business aggressively.
OthersSales in this segment edged up 0.2% year-on-year, to ¥1,052 million. Segment income was ¥138 million, up 2.0%.

3) Outlook
In the “Fourth medium-term business plan (from January 2012 to January 2014): Achieving global businesssuccess through company and individual competence” announced in March 2011, the Group aims to improve
profitability in the current business fields and increase new merchandise fields and sales channels by enriching themerchandising categories for Domestic Baby and Mother Care Business in Japan, extending new business in IT
home shopping, deeply cultivating priority merchandise categories in the Health Care and Nursing Care Business,and finding new sales channels. Regarding Overseas Business, the Group aims to deeply cultivate current markets
and implement business expansion in China and North America by enriching merchandise categories while
extending the production system and strengthening the business operation system by aggressive business
investment. In India, the Middle and Near East, Korea, and South and Central America, the Group aims topromote aggressive market development.
For the following consolidated accounting year, which will be the second year of the "Fourth medium-termbusiness plan", the Group has defined its primary policy as follows, and will make a steady effort to ensure theachievement of the plan.

Basic Policies
1. In order to ensure the achievement of the goals set forth in the "Fourth medium-term business plan", during thesecond year of this plan, the Group will review when deemed necessary the business strategy and functional
strategy of each business segment, fully taking into account the degree of advancement of the measures conducted
and the business results achieved, as well as the changes of business environment of the previous consolidated
accounting year, and steadily implement the most important measures planned for this consolidated accountingyear.
2. By effective use of the production facilities/capacity of the entire group, we will strive to implement further themeasures to improve profitability, at the same time appropriately maintaining and reinforcing the production
system so as to enable the growth of the group businesses in the future.
3. Seeking “Achieving global business success through company and individual competence,” we will focus on
nurturing human resources, while formulating medium-term strategies of each business and building
organizational frameworks according to our growth potential.
For the year starting January 2012, the Group forecasts consolidated net sales of ¥64,300 million (up 8.7% year5

on-year), operating income of ¥5,650 million (up 12.0%), ordinary income of ¥5,550 million (up 12.9%), and net
income of ¥3,300 million (up 3.7%).

6

(2) Financial Position
1) Assets
As of January 31, 2012, Pigeon had consolidated total assets of ¥43,772 million, up ¥1,087 million (or 2.6%) froma year earlier.
Within this amount, total current assets increased ¥1,280 million (5.3%), and total fixed assets decreased¥192 million (1.0%).
Major factor boosting current assets was a ¥1,127 million (19.5%) increase in inventory.
The main reasons for the decline in fixed assets were depreciation and amortization of goodwill.

2) Liabilities
Total liabilities as of January 31, 2012 stood at ¥15,836 million, up ¥196 million (1.3%) from the previous fiscal
year-end. Current liabilities increased ¥155 million (1.3%), while long-term liabilities increased by ¥40 million(1.2%).
Main factors boosting current liabilities were a ¥67 million (2.5%) increase in accrued account payable anda ¥142 million (25.4%) increase in income taxes payable.
There have been no major changes with long-term liabilities.

3) Net Assets
At January 31, 2012, consolidated net assets amounted to ¥27,935 million, up ¥891 million (3.3%) from a year
earlier.
This increase resulted mainly from a ¥524 million (28.2%) decrease in foreign exchange adjustment accounts
while there was a ¥1,422 million (7.7%) increase in retained earnings.

4) Cash Flow
As of January 31, 2012, cash and cash equivalents (hereinafter referred to as "net cash") amounted to ¥7,293
million, up ¥465 million from a year earlier.
Cash Flows from Operating Activities
Net cash provided by operating activities amounted to ¥4,212 million, up from ¥3,206 million of the previous year.
Factors decreasing operating cash flows included a ¥1,019 million increase in inventories and a ¥1,313 million
decrease in corporation tax payments. Contrasting factors included a ¥4,723 million increase in net income before
tax adjustments and a ¥1,595 million increase in depreciation.
Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥1,871 million, down from ¥3,949 million of the previous year. Main
factors included expenditures of ¥1,416 million in the acquisition of tangible fixed assets and ¥327 million inpurchase of investments in subsidiaries resulting in change in scope of consolidation.
Cash Flows from Financing Activities:
Net cash used in financing activities was ¥1,776 million (up from ¥886 million of the previous year). Decreases
resulted primarily from ¥9,530million in payment of short-term loans, ¥1,020 million in repayment of long-term
debt and ¥1,758 million in payment of cash dividends. Contrasting factors included net cash increases fromincome of ¥9,516 million related to short-term borrowing and income of ¥1,073 million related to long-termborrowing.

7

[Reference] Cash Flow Indicators for the year ended January 31
FY2010FY2011FY2012Equity Ratio (%)

65.3

62.2

62.7

Equity Ratio based on Market Price (%)

179.7

117.2

131.1

Debt Repayment Term (years)

0.5

1.5

1.1

Interest Coverage Ratio (times)

96.2

59.3

67.2

Notes:- Equity ratio: Total shareholders’ equity ÷ Total assets- Equity ratio based on market price: Market value of total stock ÷ Total assets- Debt repayment term: Interest-bearing debt ÷ Operating cash flows- Interest coverage ratio: Operating cash flows ÷ Interest paid
1. Each index is calculated based on consolidated financial figures.
2. Market value of total stock is calculated by multiplying the stock price (closing price at the end of the term) by the number of shares outstandingat the end of the term (after deduction of treasury stock).
3. Operating cash flow figures are taken from the Cash Flows from Operating Activities section of the Consolidated Statements of Cash Flows.
4. Interest-bearing debt refers to all debt that incurs interest (listed in Consolidated Balance Sheets).
5. For interest paid, interest expenses (listed in Consolidated Statements of Cash Flows) are used.

(3) Profit Appropriation Policy
The Pigeon Group regards the return of profits to shareholders as an important management priority. Our policy is
to actively return profits to shareholders through appropriation of retained earnings and other means, while
reinforcing our financial position based on considerations of medium-term changes in business conditions and theGroup’s business strategies. In addition to strengthening our financial position, we effectively use retained
earnings in a number of ways to fortify our operational base and improve future Group earnings. These include
investing in new businesses and research and development, as well as investing in production facilities to raise
production capacity, reduce costs, and enhance product quality.
With respect to specific goals of shareholder return, under our medium-term management plan announced in
March 2011, we are targeting a consolidated total shareholder return of 50%. To this end, we are seeking tofurther strengthen and upgrade measures for returning profits to all shareholders.
Based on this policy, we paid an interim cash dividend of ¥44.00 per share, and we plan to declare a year-end
dividend of ¥44.00. This will bring total annual dividends to ¥88.00 per share (¥88.00 per share of common stock).

8

2. Management Policies(1) Basic Policies
Based on its corporate commitment, “providing the gift of love to all,” The Group is dedicated to helping those inneed—while pregnant, giving birth, and rearing children, as well as in old age. Our policy is to develop ourbusiness by delivering products and services that address the needs of these people. Fulfilling our role as a“lifestyle support company focusing on child rearing,” we are leveraging our brand and the quality of ourmanagement to build a high corporate profile that is recognized worldwide. This is our medium-term corporate
vision.

(2) Performance Targets
The Group has drawn up a “Fourth medium-term business plan (from January 2012 to January 2014): Achieving
global business success through company and individual competence.”
By steadily implementing initiatives as stated in our basic medium-term policies, which are outlined in theparagraphs below, we have set the following performance targets for the fiscal year ending January 2014: net salesof ¥73,300 million, operating income of ¥7,350 million, ordinary income of ¥7,300 million, and net income of¥4,400 million. We have also adopted return on equity (ROE) as a suitable benchmark for targeting improved
profitability and capital efficiency, and we hope to achieve ROE of 14% or higher by the year ending on January
2014.

(3) Medium-Term Management Strategies
Under the “Fourth medium-term business plan (from January 2012 to January 2014): Achieving global businesssuccess through company and individual competence,” we have set the following basic policies in order toestablish ourselves as a true global company.
1) Focus on positive business development in overseas markets, aiming to further grow and expand as a global
company.
2) In our domestic and international operations, we will seek to further strengthen and improve the profitability ofcurrent existing businesses as well as work to achieve solid growth in new and developing businesses.
3) Build a global business management system based on the core components of “Building Human Resources”
and “Creating new value based on fundamental research.”(4) Issues to Address
The Group continues to face an unstable operating environment, characterized by such factors as prolonged global
financial instability, emerging world economies and other global trends. Based on the "Fourth medium-termbusiness plan", aiming at "achieving global business success through company and individual competence", theGroup will steadily implement the measures grounded on the business strategy of each business segment and thefunctional strategy that serves as the foundation thereof.
Specifically, regarding positioning ourselves in overseas growth markets, we plan to expand on our current
markets centering on China and North America and also to actively search out and expand into new previously
unexplored markets. As a result of following these guidelines we plan expand our overall business operations.
In addition, we will target further improvements in management soundness and transparency by broadening
and reinforcing our internal control system.

93. Consolidated Financial Statement(1) Consolidated Balance Sheets(Thousands of yen)
At January 31, 2011ASSETS
I. Current Assets:
Cash and time deposit
Notes and accounts receivable
Goods and products
Goods in process
Raw material and inventory goods
Deferred tax assets-current
Receivables
Other current assets
Allowance for doubtful accounts
Total Current Assets
II. Fixed Assets:
1. Tangible Fixed Assets:
Buildings and structures
Accumulated depreciation
Buildings and structures-net
Machinery and transportation equipment
Accumulated depreciation and accumulated
impairment loss
Machinery and transportation equipment-net
Tools, furniture and fixtures
Accumulated depreciation and accumulated
impairment loss
Tools, furniture and fixtures-net
Land
Construction in progress
Total Tangible Fixed Assets
2. Intangible Fixed Assets:
Goodwill
Software
Other intangible fixed assets
Total Intangible Fixed Assets
3. Investments and Other Assets:
Investment securities
Bankruptcy claims
Deferred tax assets
Insurance reserve
Other
Allowance for doubtful accounts
Total Investments and Other Assets
Total Fixed Assets
Total Assets

10

At January 31, 2012

6,827,706
9,874,273
4,549,808
54,401
1,194,021
800,913374,983
600,689(113,948)
24,162,848

7,293,629
9,993,322
5,332,818
146,452
1,446,804
729,151
279,064
334,097(112,139)
25,443,202

11,561,584(6,211,063)
5,350,520
8,742,001

11,638,533(6,481,737)
5,156,795
9,295,200(6,195,039)(6,482,277)

2,546,962
4,184,549

2,812,922
4,254,301(3,270,429)(3,340,960)

914,119
6,012,825
584,885
15,409,313

913,340
5,979,122
196,482
15,058,663

599,728
425,625
162,725
1,188,079

659,742
350,880
274,804
1,285,427

1,316,276
78,849104,922225,011
276,669(77,222)
1,924,506
18,521,899
42,684,748

1,344,281
64,047
123,470
232,853
282,450(61,853)
1,985,250
18,329,341
43,772,544

(Thousands of yen)
At January 31, 2011

At January 31, 2012

LIABILITIES
I. Current Liabilities:
Notes and accounts payable

3,984,705

3,758,318

Short-term borrowings

2,258,000

2,233,220

Long-term debt due within one year

1,000,000

1,022,873

Accrued account payable

2,687,791

2,755,082

Income taxes payable

561,952

704,870

Accrued bonuses to employees

537,505

587,343

Returned goods adjustment reserve

46,08459,650

Other current liabilities

1,151,100

1,261,286

Total Current Liabilities

12,227,140

12,382,644

Long-term borrowings

1,615,000

1,642,165

Deferred tax liabilities

1,103,356

1,040,892

243,710305,368

322,447355,298

129,055

110,491

Total Long-Term Liabilities

3,413,570

3,454,217

Total Liabilities

15,640,710

15,836,861

Capital stock

5,199,597

5,199,597

Additional paid-in capital

5,180,246

5,180,246

Retained earnings

18,451,368

19,873,527

Treasury stock(447,673)(448,680)

Total Shareholders’ Equity

28,383,538

29,804,691

11,237

10,073(1,861,586)(2,386,518)(1,850,348)(2,376,445)

510,847

507,436

27,044,037

27,935,682

42,684,748

43,772,544

II. Long-Term Liabilities:

Employees’ retirement benefits
Retirement benefits for directors andcorporate auditors
Other long-term liabilities

NET ASSETS
I. Shareholder’s Equity:

II. Accumulated Other Comprehensive Income:Net unrealized gains on securities
Foreign currency translation adjustment
Total Accumulated Other Comprehensive Income
III. Minority Interests
Total Net Assets
Total Liabilities, Minority Interests and Net
Assets11

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)

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. Other Income:Interest income
Dividend income
Rental income
Equity in earnings of non consolidated subsidiaries
and affiliates
Refund of consumption tax
Other
Total Other Income
V. Other Expenses:
Interest expense
Sales discounts
Rental income-related costs
Currency exchange loss
Other
Total Other Expenses
Ordinary Income
VI. Extraordinary Income:Gain on sales of property
Gain on sales of investment securities
Reversal of allowance for doubtful accounts
Total Extraordinary Income
VII. Extraordinary Loss:
Loss on sales of property
Loss on disposal of property
Retirement benefit expenses for prior periods
Loss on disaster
Loss on liquidation of subsidiaries and affiliates
Office transfer expenses
Other
Total Extraordinary Loss
Income before Income Taxes
Income taxes
Adjustment for corporate tax
Total Corporate Income Tax
Income before Minority Interests
Less: Minority Interest in Net Income ofConsolidated Subsidiaries
Net Income

12Year Ended
January 31, 2011
57,061,735
33,795,559
23,266,176
61,43446,56023,281,049
18,734,173
4,546,876(Thousands of yen)
Year Ended
January 31, 2012
59,145,132
34,811,777
24,333,355
45,95660,18824,319,124
19,276,291
5,042,832

29,38823,506
83,65934,081
23,178－48,46562,52550,690136,896372,606

39,821
213,701
373,307

48,059224,372
52,437
147,431
11,865484,166
4,435,315

79,454
221,692－
144,032
53,934
499,113
4,917,026

5,041
6,996
8,229
20,267

7,759－
12,06819,828522
10,762－－62,306
12,462150
86,2034,369,380
1,331,238
21,253
1,352,492－

569
29,53044,352
134,039－－
4,692
213,183
4,723,671
1,463,220(10,849)
1,452,370
3,271,301

88,48087,894

2,928,407

3,183,406

(Consolidated Statements of Comprehensive Income)Year Ended
January 31, 2011
Income before Minority Interests
Other Comprehensive Incomes:
Valuation difference on
available-for-salesecurities
Foreign currency translation adjustment
Total Other Comprehensive Incomes
Comprehensive Income(Breakdown)Comprehensive incomes relating to shareholdersof parental company
Comprehensive incomes relating to minority
shareholders

13－(Thousands of yen)
Year Ended
January 31, 2012
3,271,301－(1,163)－－－(524,932)(526,096)
2,745,204－

2,705,150－

40,053

(3) Statement of Changes in Consolidated Shareholders’ Equity(Thousands of yen)

Shareholders’ equity
Common stock
Balance at the end of previous period
Changes during the period
Total changes during the period
Balance at the end of current period
Capital surplus
Balance at the end of previous period
Changes during the period
Total changes during the period
Balance at the end of current period
Retained earnings
Balance at the end of previous period
Changes during the period
Dividends from surplus
Net income
Total changes during the period
Balance at the end of current period
Treasury stock
Balance at the end of previous period
Changes during the period
Acquisition of treasury stock
Total changes during the period
Balance at the end of current period
Total shareholders’ equity
Balance at the end of previous period
Changes during the period
Dividends from surplus
Net income
Acquisition of treasury stock
Total changes during the period
Balance at the end of current period

14

Year Ended
January 31, 2011

Year Ended
January 31, 2012

5,199,597

5,199,597－
5,199,597－
5,199,597

5,180,246

5,180,246－
5,180,246－
5,180,246

17,044,069

18,451,368(1,521,108)
2,928,407
1,407,298
18,451,368(1,761,247)
3,183,406
1,422,159
19,873,527(446,523)(447,673)(1,150)(1,150)(447,673)(1,007)(1,007)(448,680)

26,977,390

28,383,538(1,521,108)
2,928,407(1,150)1,406,148
28,383,538(1,761,247)
3,183,406(1,007)
1,421,152
29,804,691

(Thousands of yen)

Accumulated other comprehensive income
Valuation difference on other marketablesecurities
Balance at the end of previous period
Changes during the period
Changes in items other than shareholders equity(net)
Total changes during the period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the end of previous period
Changes during the period
Changes in items other than shareholders equity(net)
Total changes during the period
Balance at the end of current period
Total accumulated other comprehensive income
Balance at the end of previous period
Changes during the period
Changes in items other than shareholders equity(net)
Total changes during the period
Balance at the end of current period
Minority interests
Balance at the end of previous period
Changes during the period
Changes in items other than shareholders equity(net)
Total changes during the period
Balance at the end of current period
Total net assets
Balance at the end of previous period
Changes during the period
Dividends from surplus
Net income
Acquisition of treasury stock
Changes in items other than shareholders equity(net)
Total changes during the period
Balance at the end of current period

15

Year Ended
January 31, 2011

Year Ended
January 31, 2012

7,563

11,237

3,673(1,163)

3,673
11,237(1,163)
10,073(1,203,267)(1,861,586)(658,318)(524,932)(658,318)(1,861,586)(524,932)(2,386,518)(1,195,704)(1,850,348)(654,644)(526,096)(654,644)(1,850,348)(526,096)(2,376,445)

482,638

510,847

28,209(3,411)

28,209510,847(3,411)
507,436

26,264,324

27,044,037(1,521,108)
2,928,407(1,150)(1,761,247)
3,183,406(1,007)(626,434)(529,507)

779,713
27,044,037

891,644
27,935,682

(4) Consolidated Statements of Cash Flows
Year Ended
January 31, 2011
I. Cash Flows 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 employees’ retirement
benefits
Increase (decrease) in directors’ retirement
benefits
Interest and dividend income
Equity in (gains) losses of non consolidated
subsidiaries and affiliates
Interest expense
Loss (gain) on sale of fixed assets
Loss (gain) on sales of investment securities
Loss on disposal of fixed assets
Loss (gain) on liquidation of subsidiaries andaffiliates
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in account payable
Increase (decrease) in consumption tax payable
Decrease (increase) in bankruptcy claims
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net Cash Provided by Operating Activities

4,369,380
1,624,263
316,055

4,723,671
1,595,708
236,822820(15,781)

6,060

50,29822,47764,942

24,06132,851(52,894)(57,259)(48,465)(62,525)

48,059(4,519)(6,996)
10,76279,454(7,190)－29,53062,306(1,470,926)－(400,509)(148,261)
443,295(60,021)
3,865(116,790)
4,622,024
82,256(53,997)(1,444,028)
3,206,255

16(Thousands of yen)
Year Ended
January 31, 2012

(93,324)(1,019,428)(241,215)
139,427
7,114
14,802
51,2335,529,131
59,033(62,642)(1,313,285)
4,212,236

Year Ended
January 31, 2011
II. Cash Flows from Investing Activities:
Acquisition of property, plant and equipment
Proceeds from sales of property, plant andequipment
Acquisition of intangible assets
Acquisition of investment securities
Proceeds from sales of investment securities
Payments for transfer of business
Payment to life insurance fund for directors
Proceeds from cancellation of life insurance fundfor directors
Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Proceeds from purchase of investments in
subsidiaries resulting in change in scope of
consolidation
Loans advanced
Collection of loan receivables
Decrease (increase) of deposits paid
Payment for lease deposits
Proceeds from recovery of lease deposits
Other
Net Cash Used in Investing Activities
III. Cash Flows from Financing Activities:
Proceeds from short-term debt
Repayment of short-term debt
Proceeds from long-term loans payable
Repayment of long-term debt
Payment of cash dividends
Payment of cash dividends to minority
shareholders
Acquisition of treasury stock
Other
Net Cash Used in Financing Activities
IV. Effect of Exchange Rate Changes on Cashand Cash Equivalents
V. Net Change in Cash and Cash Equivalents
VI. Cash and Cash Equivalents at Beginning of
the Period
VII. Cash and Cash Equivalents at End of the
Period17(Thousands of yen)
Year Ended
January 31, 2012

(2,710,009)(1,416,158)

44,871

7,007(193,405)(299)
18,205(818,505)(9,779)(123,872)(1,202)－－(9,563)

2,059

2,277

－

(327,623)－

13,944(16,355)
2,941(290,347)(19,806)
33,855
7,014(3,949,562)(2,620)16,015－(23,801)
21,280(26,974)(1,871,289)

8,548,560(7,627,950)
1,648,000(103,680)(1,518,320)

9,516,010(9,530,540)
1,073,080(1,020,305)(1,758,523)(49,894)(43,464)(1,150)(9,327)886,237(1,007)(11,283)(1,776,035)(220,765)(98,987)(77,835)

465,923

6,905,541

6,827,706

6,827,706

7,293,629

4. Segment Information(1) Performance by Business Segment
Previous fiscal year (February 1, 2010–January 31, 2011)(Thousands of yen)
Baby and child
care

Healthcare

OthersTotal

3,879,771

57,061,735

Eliminations or
corporate

Consolidated－

57,061,735

Sales(1) Sales to outside customers

46,753,646

6,428,317

－

－

－

－

(－)

－

Total

46,753,646

6,428,317

3,879,771

57,061,735(－)

57,061,735

Operating expenses

39,794,084

6,282,964

3,314,757

49,391,806

3,123,052

52,514,859

Operating income

6,959,561

145,353

565,014

7,669,928(3,123,052)

4,546,876

Total assets

28,261,209

3,812,166

2,284,364

34,357,740

8,327,008

42,684,748

Depreciation and amortization

1,224,752

144,639

78,6691,448,061

176,2021,624,263

3,250,182
147,450
53,264
Notes:
1. The Company’s business is segmented for internal control purposes.
2. Main products/services of each segment are shown below.
Segment
Main products/services

3,450,897

160,976

3,611,874(2) Intersegment sales

Capital investment

Baby and child care

Breastfeeding and weaning products, skincare products, child-rearing support services, other

Healthcare

Nursing-care products, nursing-care support services, other

Others
Women’s care products (supplements, maternity products, etc.), wet tissues, other
3. Figures in the “Eliminations or corporate” column refer to the portion of operating expenses that are unallocatable. These are primarily expenses
related to general administration and R&D.
4. Assets at year-end included all companywide assets covered in the “Elimination or corporate” column. Such assets consisted mainly of a foreign
currency translation adjustment amount (incurred when translating financial statements of overseas consolidated subsidiaries into yen), surplus
working capital of the parent company (cash and deposits), long-term investment capital (investments in securities, etc.), and administrationrelated assets.
5. “Depreciation” and “Capital expenditure” include long-term prepaid expenses or depreciation related to such expenses.

(2) Performance by Geographic Region
Previous fiscal year (February 1, 2010–January 31, 2011)(Thousands of yen)
Eliminations or
corporate

Consolidated

Japan

Asia

Others(1) Sales to outside customers

39,967,097

12,244,389

4,850,248

57,061,735－

57,061,735(2) Intersegment sales

2,481,525

2,315,461－

4,796,987(4,796,987)

－

Total

42,448,623

14,559,850

4,850,248

61,858,722(4,796,987)

57,061,735

Operating expenses

37,281,028

12,633,803

4,410,644

54,325,476(1,810,617)

52,514,859

Total

Sales

Operating income

5,167,595

1,926,047

439,6037,533,246(2,986,369)

4,546,876

Total assets

26,816,311

12,125,953

2,583,159

41,525,423

1,159,324

42,684,748

Notes:
1. Segmentation of countries and regions is based on geographic proximity.
2. Major countries and regions are as follows:
Asia: Singapore, Thailand, China, India
Other: United States, etc.
3. Operating expenses for the year included ¥3,123,052 thousand in expenses for noncategorized spending covered in the “Elimination or corporate”
column. Such expenses were mainly related to divisions in control of consolidated administration and R&D.
4. Assets at year-end included ¥8,327,008 thousand in companywide assets covered in the “Elimination or corporate” column. Such assets consisted
mainly of a foreign currency translation adjustment amount (incurred when translating financial statements of overseas consolidated subsidiaries
into yen), surplus working capital of the parent company (cash and deposits), long-term investment capital (investments in securities, etc.), andadministration-related assets.

18

(3) Oversea Sales
Previous fiscal year (February 1, 2010–January 31, 2011)(Thousands of yen)
Asia
Overseas sales

North America

Middle East

Other

Total

12,998,645

3,855,381

1,411,979

1,588,386

19,854,392

－

－

－

－

57,061,735

Consolidated net sales

Share of overseas sales in
22.8
6.7
2.5
2.8
34.8
consolidated net sales (%)
Notes:
1. Segmentation of countries and regions is based on geographic proximity.
2. Major countries and regions are as follows:(1) Asia: China, South Korea, Singapore, etc.
(2) North America: United States, Canada, etc.
(3) Middle East: United Arab Emirates, etc.
(4) Other: South Africa, Germany, Panama, etc.
3. Overseas sales refer to sales in countries or regions outside of Japan reported by the Company and its consolidated subsidiaries.

(4) Information Regarding Net Sales and Profit & Loss in Each Report Segment
Previous fiscal year (February 1, 2010–January 31, 2011)
Report Segment
Domestic
Health Care
Child-rearing
Baby andand Nursing Overseas
SupportSub Total
Mother Care
Care
Business
Services
Business
Business
Sales
Sales tooutsidecustomers

Other(Note) 1

Total(Thousands of yen)AmountAdjustments
Accounted on(Note) 2
Consolidated(Note) 3
Financial(Note) 4
Statements(Note) 5(Note) 6

24,145,237

5,455,282

6,503,272 19,907,680 56,011,473

1,050,262 57,061,735－

57,061,735

Total

24,145,237

5,455,282

6,503,272 19,907,680 56,011,473

1,050,262 57,061,735－

57,061,735

Segment income

3,611,660

117,959

7,722,300(3,175,423)

4,546,876

Segment assets

11,319,844

1,120,209

951,564 32,847,800

9,836,947

42,684,748

578,171

24,344

131,259

559,696

1,293,471

44,916

1,338,388

285,875

1,624,263

3,478

930

32,859278,689

315,95797

316,055－

316,055

429,365

33,417

113,3092,882,334

3,458,427

24,4693,482,896

128,977

3,611,874

111,619

3,745,416

7,586,657

3,629,560 15,826,621 31,896,236

135,642

OthersDepreciation(Note) 7
Amortization of
goodwill
Increase intangible fixed
assets andintangible fixed
assets(Note) 8

19

Current fiscal year (February 1, 2011–January 31, 2012)
Report Segment
Domestic
Health Care
Child-rearing
Baby andand Nursing Overseas
SupportSub Total
Mother Care
Care
Business
Services
Business
Business
Sales
Sales tooutsidecustomers

Other(Note) 1

Total(Thousands of yen)AmountAdjustments
Accounted on(Note) 2
Consolidated(Note) 3
Financial(Note) 4
Statements(Note) 5(Note) 6

24,047,899

5,990,953

6,469,338 21,584,699 58,092,891

1,052,241 59,145,132－

59,145,132

Total

24,047,899

5,990,953

6,469,338 21,584,699 58,092,891

1,052,241 59,145,132－

59,145,132

Segment income

3,677,862

152,538

8,228,228(3,185,396)

5,042,832

Segment assets

11,491,503

1,133,147

977,594 34,379,299

9,393,244

43,772,544

471,528

26,252

117,729

729,942

1,345,453

41,355

1,386,809

208,899

1,595,708

3,481

3,720

13

229,515

236,73092

236,822－

236,822350,318

3,909,185

8,089,904

3,654,875 17,122,178 33,401,705

138,323

OthersDepreciation(Note) 7
Amortization of
goodwill

Increase intangible fixed
assets and355,145
26,934
186,431 1,000,187 1,568,698
50,081 1,618,779
96,496
1,715,275
intangible fixed
assets(Note) 8
Notes:
1. "Other" means a segment not in the report segments and mainly includes manufacture and sale by our production subsidiaries
outside the Group.
2. Segment income adjustments are all selling costs that cannot be allocated. Main adjustments are costs in the management
division, etc. of the Group.
3. Segment assets adjustments are all companywide assets. Main adjustments are assets, etc. in the surplus working capital of theparent company (cash and deposits), long-term investment capital (investments in securities, etc.), and administration-related
assets.
4. Depreciation adjustments are depreciation related to companywide assets.
5. Adjustments of increase in tangible fixed assets and intangible fixed assets are related to companywide assets.
6. Segment income is adjusted with that in operating income of Consolidated Statements of Income.
7. Depreciation includes depreciation related to long-term prepaid expenses.
8. Increase in tangible fixed assets and intangible fixed assets includes increase in long-term prepaid expenses.

20