Summary of Financial Results
for the First Quarter of Fiscal Year Ending December 2023
[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 12, 2023
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 11, 2023

1. Consolidated Business Performance for the First Quarter of Fiscal YearEnding December 31, 2023 (January 1 to March 31, 2023)(1) Consolidated Operating Results (cumulative)

1Q ended March 31, 2023

(Millions of yen, rounded down, % figures denote year-on-year change)
Net Income
Net Sales
Operating Income
Ordinary Income
Attributable to
Owners of Parent
23,613
8.7%
3,404
13.7%
3,791
(4.5)%
2,438(6.9)%

1Q ended March 31, 2022
21,714
1.7%(Note) Comprehensive income: 1Q ended March 31, 2023
1Q ended March 31, 2022

2,994
4.7%
3,971
¥3,274 million (34.5% negative)¥4,997 million (20.0%)

Net Income per Share (¥)

15.0%

20.38

－

1Q ended March 31, 2022

21.88

－

Net Assets
78,608Equity Ratio (%)
74.5

101,733
79,952
FY ended December 31, 2022
(Reference) Shareholders’ Equity: 1Q ended March 31, 2023
¥75,297 million
FY ended December 31, 2022 ¥76,695 million

75.4

1Q ended March 31, 2023

Total Assets
101,034

2. Cash Dividends

30.3%

Diluted Net Income per
Share (¥)

1Q ended March 31, 2023

(2) Consolidated Financial Position

2,617

Annual Dividend (¥)
1Q-end2Q-end3Q-end38.00
FY ended December 31, 2022－
FY ending December 31, 2023－
FY ending December 31, 2023
38.00
(Forecast)(Note) Changes in dividend forecasts from the most recent announcement: None

Year-end

Total

－

38.00

76.00

－

38.00

76.00

3. Consolidated Business Performance Forecasts for the Fiscal YearEnding December 31, 2023 (January 1 to December 31, 2023)
Net Sales
Millions of Yen(% figures denote year-on-year change from the previous term)
Net Income
Net Income per
Operating Income
Ordinary Income
Attributable to
Share
Owners of Parent% Millions of Yen% Millions of Yen

Full year
100,000
5.3
12,4001.7
12,400(Note) Revision of forecasts from the most recent announcement: None

% Millions of Yen

(7.9)

8,100

%

(5.6)

Yen

67.70

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: None
2) Changes in accounting policies other than the above 1): None
3) Changes in accounting-based estimates: None
4) Restatements: None
(4) Number of outstanding shares (common stock)1) Number of shares outstanding at the period-end (including treasury stock)
1Q ended March 31, 2023: 121,653,486
FY ended December 31, 2022: 121,653,486
2) Amount of treasury stock at the period-end
1Q ended March 31, 2023: 1,985,001
FY ended December 31, 2022: 1,996,448
3) Average number of shares outstanding during the period (quarter accumulation)
1Q ended March 31, 2023: 119,658,895
1Q ended March 31, 2022: 119,637,155(Note) Amount of treasury stock at the period-end includes Company shares held by the board incentive plan (BIP) trust forcompensation of directors (91,348 shares as of 1Q ended March 31, 2023; 102,956 shares as of FY ended December
31, 2022). 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 2023

Table of Contents of the Appendix
1. Qualitative Information Regarding the Financial Results for the Current Quarter.......................... 2(1) Explanation of Business Performance ......................................................................................... 2(2) Explanation of Financial Position ............................................................................................... 4(3) Explanation of Consolidated Performance Forecast and Other Future Predictions .................... 4
2. Quarterly Consolidated Financial Statements and Main Notes ....................................................... 5(1) Quarterly Consolidated Balance Sheets ...................................................................................... 5(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income .............................................................................................................. 7
Quarterly Consolidated Statement of Income(Scope of Consolidation of First Quarter)................................................................................. 7
Quarterly Consolidated Statement of Comprehensive Income(Scope of Consolidation of First Quarter) ................................................................................. 8(3) Notes on Consolidated Financial Statements .............................................................................. 9(Notes Regarding Going Concern Assumptions) ........................................................................ 9(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 2023

1. Qualitative Information Regarding the Financial Results for the Current Quarter(1) Explanation of Business Performance
1) Performance Overview
For the Japanese and global economies, the consolidated first quarter under review was a period ofstabilization and recovery tinged with new concerns on the horizon. In the Japanese economy,
personal consumption gradually recovered, albeit with weaknesses in some areas. Restrictions
imposed during the COVID-19 pandemic were greatly eased, encouraging expectations of an
economic rebound coexisting with COVID-19. The global economy, paced by China, continued on
their paths of gradual recovery. Nonetheless, prospects remain uncertain in view of the impact oftrends such as worldwide monetary tightening, inflation, supply bottlenecks, and fluctuations infinancial capital markets.
Against this background, in February 2023 the Pigeon Group announced its Eighth Medium-TermBusiness Plan (covering the period from the fiscal year ending December 2023 through the fiscal year
ending December 2025). To respond flexibly to a business environment that continues to change
rapidly worldwide, thereby ensuring itself of sustainable growth, the Group is implementing threebasic strategies (brand strategy, core product strategy and regional strategy). Guided by thesestrategies, the Group will focus on pursuing sustainable growth in existing business fields and on
exploring and cultivating new growth fields where it can deploy its unique expertise, thereby
proactively rebuilding its operating structure. Moreover, the Group will implement a range ofmeasures to achieve its purpose, which is “to make the world more baby-friendly by furthering ourcommitment to understanding and addressing babies' unique needs.”
Business results during the consolidated first quarter under review were mixed. Net sales, led by the
China Business and Lansinoh Business, and buoyed by impacts such as yen depreciation, grew to¥23,613 million (up 8.7% YOY). In earnings, higher revenues boosted income and gross profit
margin improved by 0.4 points. Operating income rose to ¥3,404 million (up 13.7% YOY), but
ordinary income slipped to ¥3,791 million (down 4.5% YOY) and net income attributable to ownersof parent retreated to ¥2,438 million (down 6.9% 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$: 132.39 yen (116.35 yen)
・1 CNY: 19.33 yen (18.32 yen)
Note: Figures in parentheses represent the exchange rate in the same period of the previous fiscal
year.
2) Segment Review
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 ¥8,873 million (up0.3% YOY), and segment profit was ¥439 million (down 19.1% YOY).
In the Baby Care Business (childcare and feminine products), sales trended favorably for certain
consumables, such as baby foods, baby beverages and bottom wipes. However, sales of nursing
bottles, one of the Group’s mainstay product lines, declined YoY on a rebound effect from highinitial shipments of the renewed Bonyu Jikkan® nursing bottle series, released in February 2022.
Even so, Pigeon nursing bottles maintained an overwhelming 80%-plus share of the Japanesemarket in price terms. Also in February 2023, the Group launched ME. By Pigeon, an all-new series
2Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2023

of five products addressing the concerns of women in the delicate zone from pregnancy to postnatal,
available through outlets such as the Official Pigeon Online Shop. The Group also launched
products such as Milkpon W Antiseptic Wash, a wash that simultaneously cleans and sterilizes
nursing bottles. Finally, again in February 2023, the Group revised prices on some of its baby
products, including nursing bottles and nipples. (Prices for other products, such as strollers, wererevised in or after March 2023).
The Group conducted a number of initiatives in direct communications. We offered occasionalpresentations on Insta Live, a live webcasting service of Instagram, to connect directly andintuitively with customers about the unique features of our products. This service reached over
15,000 viewers, including viewers of archived content. On the Pigeon Info website, the Group
continued to strengthen engagement by expanding its roster of content, including information to
alleviate parents’ anxieties and uncertainties about child-rearing and introductions to Group
products.
In products for health and elder care, in February 2023 the Group launched Raku Raku Oshiri Kirei
Mist, a spray that transforms toilet paper into a bottom wipe that can be flushed down the toilet,
through elder-care specialty shops, drugstores and online stores throughout Japan. Also in February
2023, the Group revised prices on some of its products for health and elder care.
Regarding child care service, the Group provided services at 63 in-company child-care facilities andothers during the consolidated first quarter under review. The Group will continue to develop these
operations while striving to improve the quality of service content.
China BusinessNet sales in this segment amounted to ¥8,600 million (up 9.0% YOY), and segment profit was¥2,669 million (up 5.4% YOY).
In Mainland China, after the termination of the zero-COVID policy in December 2022, the numberof persons infected with COVID-19 continued to explode in multiple areas from December 2022 toearly January 2023. At first, impact on customers’ consumption habits and the Group’s businessactivities lingered, but recovery set in later, bringing net sales in local-currency terms to roughly thesame level as the same period of the previous fiscal year. Core product lines of nursing bottles andnipples, along with skincare products, led this growth. New models were released for the mainstay
Shizen Jikkan series of nursing bottles. In skincare, products aimed at children aged three and older,launched in the second half of 2022, turned in robust sales. The Group also engaged vigorously indigital marketing, including livestreaming and posting on social media, while continuing tostrengthen sales promotion at bricks-and-mortar stores and activities at hospitals and maternity
clinics, in efforts to reap steady expansion of business.
In South Korea, where Group operations are managed through this segment, the Pigeon Groupbegan reorganizing its distribution framework in the consolidated first quarter under review. Using
local sales subsidiaries as its base, the Group is strengthening sales and marketing efforts in South
Korea, in efforts to attract new customers and reinforce relationships with existing customers.
Singapore BusinessNet sales of the segment amounted to ¥3,491 million (up 13.8% YOY), and segment profit was¥606 million (up 17.8% YOY).
This segment is responsible for operations in the ASEAN region and India. Although in some areas
net sales took a breather from the previous year’s high growth, factors such as clearance of shipping
delays, particularly in exports from Singapore, and the impact of exchange rates, net sales
outperformed YoY. Going forward, we will continue to advance the development and launch of
products targeting customers in the upper-middle class and above while actively developing sales
and marketing activities to achieve market penetration of Group brands.
Lansinoh BusinessNet sales of the segment amounted to ¥4,538 million (up 27.8% YOY), and segment profit was¥347 million (up 106.6% YOY).
3

Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2023

In North America, a vital market for the segment, net sales in local-currency terms upheld the firm
trend enjoyed in the previous year. In terms of product groups, sales of nipple creams and breast
pumps underperformed YoY, affected by the timing of orders from major customers and the like.
However, partly as a result of a shortage of powdered milk in the United States, sales of breast-milkstorage bags surged YoY, while sales of prenatal and postnatal products outperformed YoY.
Earnings increased YoY, buoyed by rising revenues and changes in the product mix, which
improved gross profit margin. Although marine transportation expenses trended lower, depletion of
inventories from previous fiscal years limited this factor’s contribution in the consolidated firstquarter under review.
Looking ahead, the Group will expand its lineup in the key segment of breastfeeding-related
products and press forward with efforts to strengthen e-commerce and brand development,
including in new categories such as prenatal and postnatal care.
(2) Explanation of Financial Position(Assets)
As of March 31, 2023, our Group recorded total assets of ¥101,034 million, down ¥699 million
from the previous consolidated fiscal year ended December 31, 2022. Current assets decreased by¥2,562 million, while fixed assets increased by ¥1,862 million.
Current assets decreased mainly due to a decrease in cash and deposits of ¥6,241 million, despite
increases in merchandise and finished goods of ¥1,744 million and in notes and accounts receivable- trade of ¥1,363 million.
Fixed assets increased mainly due to increases in other tangible fixed assets of ¥1,910 million, andin investments and other assets of ¥309 million.
(Liabilities)
As of March 31, 2023, our Group recorded total liabilities of ¥22,425 million, up ¥644 million fromthe previous consolidated fiscal year ended December 31, 2022. Current liabilities increased by¥1,158 million, while fixed liabilities decreased by ¥514 million.
Current liabilities increased mainly because of an increase in income taxes payable of ¥586 million
and an increase in notes and accounts payable - trade of ¥479 million, despite a decrease in othercurrent liabilities of ¥397 million.
Fixed liabilities decreased mainly because other fixed liabilities decreased by ¥508 million.
(Net Assets)
As of March 31, 2023, our Group recorded total net assets of ¥78,608 million, down ¥1,343 million
from the previous consolidated fiscal year ended December 31, 2022.
Net assets decreased mainly due to an decrease in retained earnings of ¥2,137 million, despite aincrease in foreign currency translation adjustment of ¥669 million.
(3) Explanation of Consolidated Performance Forecast and Other Future Predictions
The Group announced the Eighth Medium-Term Business Plan (covering the period from the fiscal
year ending December 2023 through the fiscal year ending December 2025) in February 2023,
identifying “for sustainable growth” as its theme. To respond flexibly to a business environmentthat continues to change rapidly worldwide, thereby ensuring itself of sustainable growth, the Groupis deepening the implementation of three basic strategies (brand strategy, core product strategy andregional strategy) that it began with the Seventh Medium-Term Business Plan. Guided by thesestrategies, the Group will focus on pursuing sustainable growth in existing business fields, such as
its mainstay nursing bottles and skincare products, and on exploring and cultivating new growthfields where it can deploy its unique expertise, thereby proactively rebuilding its operating structure.
With the current consolidated fiscal year as the first year of the Eighth Medium-Term Business Plan,
the Group will diligently pursue a range of measures aimed at the assured achievement of its plans.
4

Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2023

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

At December 31, 2022
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
Short-term borrowings
Income taxes payable
Accrued bonuses to employees
Provision for loss on litigation
Other current liabilities
Total Current Liabilities
II. Fixed Liabilities:
Net defined benefit liability
Provision for share-based remuneration
Other fixed liabilities
Total Fixed Liabilities
Total Liabilities

5

At March 31, 2023

34,283
15,975
10,529
632
4,156
1,793
(226)
67,14328,042
17,33812,273
675
4,213
2,268
(230)
64,581

10,4997,559
12,07430,132

10,286
7,594
13,984
31,865

380
1,928
2,308

350
1,778
2,129

2,149
(0)
2,149
34,590101,733

2,458
(0)
2,458
36,453101,034

5,066
1,542
－
989
920
7
7,036
15,563

5,546
1,891
90
1,575
972
7
6,638
16,722

566
225
5,425
6,217
21,781

540
245
4,917
5,703
22,425

Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2023

(Millions of yen)
At December 31, 2022

At March 31, 2023

NET ASSETS
I. Shareholders’ Equity:
Capital stock

5,199

5,199

Capital surplus

5,132

5,132

Retained earnings

60,762

58,624

Treasury stock(1,387)(1,339)Total Shareholders’ Equity

69,706

67,61726

47

Foreign currency translation adjustment

6,962

7,632

Total Accumulated Other Comprehensive Income

6,989

7,680

III. Non-controlling Interests

3,257

3,311

Total Net Assets

79,95278,608

Total Liabilities and Net Assets

101,733

101,034

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

6Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2023

(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
Foreign exchange losses
Other non-operating expenses
Total Non-operating Expenses
Ordinary Income
VI. Extraordinary Income:Gain on sales of fixed assets
Gain on sales of investment securities
Total Extraordinary Income
VII. Extraordinary Loss:
Loss on sales of fixed assets
Loss on disposal of fixed assets
Loss on tax purpose reduction entry of non-current
assetsTotal 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, 2022
21,714
11,243
10,4707,475
2,994

Three months ended
March 31, 2023
23,61312,122
11,490
8,086
3,404

44
12
470
337
142
1,007

58
11
372
－
50
492

21
－
10
31
3,971

22
68
14
106
3,791

4
－
4

2
19
21

0
20

1
4

－

19

20
3,954
1,730
(457)
1,273
2,681
63

25
3,787
1,916
(619)
1,296
2,491
52

2,617

2,438

Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2023

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, 2022
2,681

Three months ended
March 31, 2023
2,491

(0)

21

2,316
2,315
4,997

761
783
3,274

4,779

3,127

218

147

Pigeon Corporation (7956) Summary of Financial Results for the First Quarter of Fiscal Year Ending December 2023

(3) Notes on Consolidated Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable.
(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 2023

(Segment Information)
Three months ended March 31, 2022
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

8,417

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 ¥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.

Three months ended March 31, 2023
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)

8,318

8,341

2,417

4,535

23,613－

23,613

555

259

1,073

2

1,890

(1,890)

－

Total

8,873

8,600

3,491

4,538

25,503(1,890)23,613

Segment profit

439

2,669

606

347

4,062

(658)

3,404

Internal sales or
exchange between
segments(Notes)1. The negative amount of ¥658 million from adjustments in segment profit includes ¥76 million in elimination ofintersegment transactions and negative ¥734 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