Summary of Financial Results
for the Second Quarter of Fiscal Year Ending January 2018
[Japanese Standards] (Consolidated)
September 4, 2017
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 8, 2017
Scheduled Commencement Date of Dividend Payments: October 10, 2017
Preparation of Any Additional Explanatory Materials for Quarterly Financial Results: None
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 YearEnding January 31, 2018 (February 1 to July 31, 2017)(1) Consolidated Operating Results (cumulative)

2Q ended July 31, 2017

(Millions of yen, rounded down, % figures denote year-on-year change)
Net Income
Net Sales
Operating Income
Ordinary Income
Attributable to
Owners of Parent
49,048
5.9%
9,296
19.5%
9,380
22.3%
6,493
17.1%

2Q ended July 31, 2016
46,302(0.5)%
7,777
0.6%
7,671
(Note) Comprehensive income: 2Q ended July 31, 2017
¥6,459 million (734.0%)
2Q ended July 31, 2016¥774 million (86.9% negative)
Net Income per Share (¥)(2.6)%

5,545

5.0%

Diluted Net Income Per
Share (¥)

2Q ended July 31, 2017

54.22

－

2Q ended July 31, 2016

46.30

－

(2) Consolidated Financial Position
Total Assets
2Q ended July 31, 2017

Net Assets

75,437

FY ended January 31, 201778,889(Reference) Shareholders’ Equity: 2Q ended July 31, 2017
FY ended January 31, 2017

Equity Ratio (%)

56,77973.4

53,736¥55,362 million¥52,387 million

66.4

2. Cash Dividends
Annual Dividend (¥)
1Q-end2Q-endFY ended January 31, 2017
25.00－
FY ending January 31, 2018
31.00－
FY ending January 31, 2018
(Forecast)(Note) Changes in dividend forecasts to the most recent announcement: Yes

3Q-endYear-end

Total

－

28.00

53.00

－

31.00

62.00

3. Consolidated Business Performance Forecasts for the Fiscal Year Ending
January 31, 2018 (February 1, 2017 to January 31, 2018)
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
101,200
6.9%
18,70016.8%(Note) Revision of forecasts to the most recent announcement: Yes

18,600% Millions of Yen

13.0%

13,000

%

16.9%

Yen

108.55Notes(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)
2Q ended July 31, 2017: 121,653,486
FY ended January 31, 2017: 121,653,486
2) Number of treasury stock at the period-end
2Q ended July 31, 2017: 1,892,309
FY ended January 31, 2017: 1,891,943
3) Number of average shares outstanding during the period (quarter accumulation)
2Q ended July 31, 2017: 119,761,388
2Q ended July 31, 2016: 119,761,814* This quarterly financial results report is exempt from quarterly review.
* 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 Second Quarter of Fiscal Year Ending January 2018

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)............................................................................. 4(1) Significant Changes in Subsidiaries During the Period Under Review ..................................... .4(2) Application of Any Accounting Procedures Specific to Preparation of Quarterly
Consolidated Financial Statements ............................................................................................ .5
3. Quarterly Consolidated Financial Statements and Main Notes ....................................................... 6(1) Quarterly Consolidated Balance Sheets ...................................................................................... 6(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income .............................................................................................................. 8
Quarterly Consolidated Statement 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 Statements ............................................................................ 12(Notes Regarding Going Concern Assumptions) ...................................................................... 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 2018

1. Qualitative Information Regarding the Financial Results for the Current Quarter(1) Explanation of Business Performance
During the consolidated first six-month period under review, although personal consumption lacked
momentum, Japan’s economy continued to recover at a gradual pace as a whole, thanks to anincrease in corporate earnings, as well as enhancement in the employment and income environment.
On the other hand, the conditions in the world economy remained uncertain due to the U.S.
regulations and financial polies that are hard to predict, negation for the conditions after the British
exit from the European Union, and geopolitical risks, while general condition of businesses in the
U.S. economy remained strong as a whole.
Amid such economic circumstances, the Group developed the sixth medium-term business plan (forthe period between the fiscal year ending January 2018 and the fiscal year ending January 2020),
under the slogan of “Building our dreams into the future – by creating a bridge towards the Global
Number One manufacturer of baby products –,” and has made efforts toward our further growth in
the first year of this plan. In addition, we have set the following three basic strategies that would
help us to expand the Group's business and improve its management quality.
1) Based on the Pigeon Way, create and implement all kinds of measures to achieve the goal of
becoming ‘an indispensable company’ for the society and make our Vision “to be the baby
product manufacturer most trusted by the world’s babies and families, i.e. ‘Global NumberOne’” come true.
2) A further increase in corporate value will be pursued through improvement in profitability andefficiency of the business, and maximization of cash flows. The organizational structure,
management system and governance system will also be put in place and reinforced to ensuresustainable growth from a medium to long-term perspective.
3) During the three years of the sixth medium-term business plan, invest management resources
giving priority to the key products and carry out strategic investments, laying solid
foundations for the double-digit growth of Pigeon Group in the future.
During the consolidated first six-month period under review, we implemented strategies for each of
our business and function on the basis of the above business policies. As the result, net sales
amounted to ¥49,048 million (up 5.9% YOY), as supported by sales increases mainly in Japan,
China and North America. Regarding earnings, operating income rose to ¥9,296 million (up 19.5%
YOY) thanks to a reduction of approximately 1.9 percentage points in the sales cost ratio from theprevious term. Ordinary income recorded ¥9,380 million (up 22.3% YOY), and net income
attributable to owners of parent also increased to ¥6,493 million (up 17.1% YOY).
The main exchange rates used in the preparation of this six-month period’s financial statements for
the Company’s overseas consolidated subsidiaries (revenues and expenses) are as follows:
・1US$: 112.33 yen (111.69 yen)
・1 CNY: 16.38 yen (17.05 yen)
Note: Figures in parentheses represent the exchange rate in the same period of the previous fiscal
year.
Our Group has a total of five reporting segments identified as: “Domestic Baby & Mother Care
Business,” “Child Care Service Business,” “Health & Elder Care Business,” “Overseas Business,”and “China Business.” Each segment is outlined below.
Please take note that in order to explain the profit status of each segment in a more detailed manner,
we decided to record expenses in non-allocable operating expenses associated with the Researchand Development Department, which had been included in the Adjustment section so far, in thesegment profit of each reporting segment starting from the consolidated first three-month period of
the current fiscal year.
In addition, we have made year-over-year comparisons by converting the figures in the same period
2Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2018of the last year into the figures calculated in accordance with the new calculation method after theabove revision.
Domestic Baby & Mother Care BusinessNet sales of the segment amounted to ¥17,302 million (up 5.7% YOY). Segment profits increasedto ¥3,058 million (up 22.2% YOY), thanks to enhancement in operation ratio of manufacturing
plants as the result of a net sale increase. In this segment, sales continued to grow steadily, thanks to
inbound tourism demand that increased further, as well as introduction of the new edition of“Runfee,” single-tire baby stroller series that have received high customer satisfaction, in June, andlaunch of “Bingle,” a B-type single-tire baby stroller, in the same month. Moreover, during theperiod under review, we have held a number of events planned as a part of our directcommunications program such as our “Breast Feeding Seminar” for women expecting to give birthin the near future and a seminar about breastfeeding while parenting for health care professionals,
organized 19 times. A total of approximately 1,600 people have participated. On "Pigeon Info,"
which is a site that supports women during pregnancy, in childbirth, and those raising children, weare continuing updates of Pigeon's merchandise available and improvement in content, so that users
can use the site in a more convenient manner.
Child Care Service BusinessNet sales of the segment amounted to ¥3,759 million (up 2.9% YOY). Segment profits increased to¥81 million (up 1.5% YOY). We have launched three in-company child-care facilities, which weare currently operating while striving to improve the service quality.
Health & Elder Care BusinessNet sales of the segment amounted to ¥3,446 million (down 2.6% YOY), due to weak sales of coreproducts such as bottom wipes, body wipes and skin care products, and segment profits decreasedto ¥244 million (down 12.2% YOY). We will continue to focus on strengthening of sales activities
toward retail stores and nursing care facilities further, and will ensure that the quality of our nursing
care services is improved.
Overseas BusinessNet sales of the segment increased to ¥12,043 million (up 8.7% YOY). Segment profits also
increased to ¥2,926 million (up 24.7% YOY), thanks to the improvement of gross profit margin, as
well as effective use of selling, general and administrative expenses. In North America and Europe,
where we operate business mainly through Lansinoh Laboratories, Inc., one of our consolidated
subsidiaries, sales of breastfeeding-related products including our flagship products such as nipple
care cream, breast pumps and milk bags are growing at a good pace. In North America, sales ofbreast pumps that we supply through a new sales channel are expanding, and the operation rate of
our factory in Turkey, which started operation in January 2017, is enhancing. In addition, sales
activity in China through Lansinoh Laboratories Shanghai, our new initiative started last year totarget E-commerce, is also expanding steadily, and we will make efforts to expand our businessthere.
China BusinessNet sales in this segment increased to ¥15,198 million (up 10.6% YOY), because sales of coreproducts such as nursing bottles and nipples remained strong, particularly in the E-commercechannel. Segment profits increased to ¥4,414 million (up 16.8% YOY).
In this segment, we released new nursing bottles, cups and pacifiers featuring Disney designs inMay, and sales are expanding steadily. In addition, we will continue to strengthen our activities
toward the growing E-commerce market; we will utilize social networking services further for
invigoration of direct communication with consumers and will also continue to reinforce sales
promotions at stores as well as offline sales activities aimed at hospitals and maternity clinics, inorder to increase touch points with customers and expand our operation.

3

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2018

Other Businesses
Net sales of the segment amounted to ¥653 million (up 0.9% YOY), and the segment profits stoodat ¥65 million (down 22.6% YOY).
(2) Explanation of Financial Position(Assets)
As of July 31, 2017, our Group recorded total assets of ¥75,437 million, down ¥3,451 million fromthe previous consolidated fiscal year ended January 31, 2017. Both current and fixed assets
decreased by ¥3,153 million and ¥298 million, respectively.
Current assets decreased mainly due to a decrease in cash and deposits of ¥4,474 million, despite
increases in merchandise and finished goods of ¥762 million and in raw materials and supplies of¥548 million.
Fixed assets diminished mainly due to a decrease in other tangible fixed assets of ¥129 million.
(Liabilities)
As of July 31, 2017, our Group recorded total liabilities of ¥18,657 million, down ¥6,494 million
from the previous consolidated fiscal year ended January 31, 2017. Both current and fixed liabilities
decreased by ¥6,128 million and ¥366 million, respectively.
Current liabilities decreased mainly due to increases in short-term borrowings of ¥699 million andin current portion of long-term loans payable of ¥5,000 million.
Fixed liabilities decreased, mainly because provision for special extra retirement payments
decreased by ¥208 million after transferring it to current liabilities.
(Net Assets)
As of July 31, 2017, our Group recorded total net assets of ¥56,779 million, up ¥3,042 million fromthe previous consolidated fiscal year ended January 31, 2017.
Net assets increased mainly due to an increase in retained earnings of ¥3,140 million, despite adecrease in foreign currency translation adjustment of ¥152 million.
(3) Explanation of Consolidated Performance Forecast and Other Future Predictions
For the "Sixth Medium-Term Business Plan (for the period between the fiscal year ending January
2018 and the fiscal year ending January 2020)," our Group has put up the following slogan,"Building our dreams into the future – by creating a bridge towards the Global Number One
manufacturer of baby products –."We will further develop and enhance our business operating system, while pursuing in the
improvement of management quality and steadily implementing the measures grounded on the
newly formulated strategies for each business segment and the functional strategy that serves as thefoundation thereof. We find particularly important to continue to expand and enrich business in theexisting markets regarding the Overseas and China businesses, which our Group still positions as
growing fields. Moreover, we will aim at further improvement in business performance throughactively pursuing new markets. In this consolidated fiscal year, the first year of our sixth
medium-term business plan, we will strive to ensure completion of our plans.
The performance forecast for the entire year, released on March 6, 2017, has been revised upwardon September 4, 2017, based on the performance of the consolidated six-month period under review.
Therefore, we forecast net sales of ¥101,200 million (up 1.4% compared with the previous forecast),
operating income of ¥18,700 million (up 10.0% compared with the previous forecast), ordinary
income of ¥18,600 million (up 9.4% compared with the previous forecast) and net income
attributable to owners of parent of ¥13,000 million (up 10.2% compared with the previous forecast).
2. Issues Regarding Summary Information (Notes)(1) Significant Changes in Subsidiaries During the Period Under Review
Not applicable.
4

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2018

(2) Application of Any Accounting Procedures Specific to Preparation of Quarterly
Consolidated Financial Statements
Not applicable.

5Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2018

3. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
At January 31, 2017
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
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
Provision for special extra retirement payments
Other current liabilities
Total Current Liabilities
II. Fixed Liabilities:
Net defined benefit liability
Provision for directors and corporate
auditors’ retirement benefits
Provision for special extra retirement payments
Other fixed liabilities
Total Fixed Liabilities
Total Liabilities

6

At July 31, 201730,052
16,103
5,328
261
2,013
1,512
(26)
55,24425,577
15,725
6,091
389
2,561
1,768
(21)
52,091

6,989
5,683
7,590
20,263

6,932
5,689
7,460
20,082

51
1,055
1,106

50
1,133
1,183

2,293
(19)
2,273
23,64478,889

2,099
(19)
2,080
23,34675,437

4,857
1,693
699
5,000
2,324
929
73
37
－
5,766
21,381

4,713
2,150
－
－
1,773
964
67
－
208
5,375
15,253

131

148

445

497

208
2,986
3,770
25,152

－
2,758
3,404
18,657

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2018

(Millions of yen)
At January 31, 2017

At July 31, 2017

NET ASSETS
I. Shareholders’ Equity:
Capital stock

5,199

5,199

Capital surplus

5,179

5,179

Retained earnings

42,28045,420Treasury stock

(948)

(949)

Total Shareholders’ Equity

51,711

54,849Valuation difference on available-for-sale securities

47

36

Foreign currency translation adjustment

628

475

Total Accumulated Other Comprehensive Income

676

512

III. Non-controlling Interests

1,349

1,417

Total Net Assets

53,736

56,779Total Liabilities and Net Assets

78,88975,437

II. Accumulated Other Comprehensive Income:7

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2018

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income
Quarterly Consolidated Statement of Income(Scope of Consolidation of Second Quarter)(Millions 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
methodSubsidy income
Other non-operating income
Total Non-operating Income
V. Non-operating Expenses:
Interest expenses
Sales discounts
Foreign exchange losses
Other non-operating expenses
Total Non-operating Expenses
Ordinary Income
VI. Extraordinary Income:Gain on sales of fixed assets
Gain on sales of investment securities
Total Extraordinary Income
VII. Extraordinary Loss:
Loss on sales of fixed assets

Six months ended
July 31, 2016
46,302
24,731
21,57048
60
21,55913,7817,777

Six months ended
July 31, 2017
49,04825,27823,77055
54
23,77014,474
9,296

67

83

21

32

－
105
193

184
126
426

15
183
86
14
299
7,671

4
197
119
22
342
9,380

129
－
129

2
95
97

0

Loss on liquidation of subsidiaries and associates
Total Extraordinary Loss
Income before Income Taxes
Income Taxes - current
Income Taxes - deferred
Total Corporate Income Tax
Net Income

58
76
7,724
2,604
(536)
2,068
5,655

1
49
－
50
9,427
3,004
(181)
2,823
6,603

Net Income Attributable to Non-controlling Interests

110

110

5,545

6,493

17

Loss on disposal of fixed assets

Net Income Attributable to Owners of Parent

8

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2018

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

Net Income
Other Comprehensive Income
Valuation difference on available-for-sale securities
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

9

Six months ended
July 31, 2016
5,655

Six months ended
July 31, 2017
6,603

2
(4,883)(4,880)
774

(11)
(132)
(143)
6,459

817

6,329

(42)

130

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2018(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)

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 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
methodInterest expenses
Loss (gain) on sales of property
Loss on disposal of property
Loss (gain) on sales of investment securities
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
Other
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net Cash Provided by (Used in) 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
Proceeds from sales 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 Provided by (Used in) Investing Activities

10

Six months ended
July 31, 2016

Six months ended
July 31, 2017

7,724
1,128
63
(7)
71
(324)

9,427
1,203
3
(3)
43
14

19

52

(68)

(84)

(21)

(32)

15
(128)
17
－

4
(0)
49
(95)

(3,246)

174

435
2,180
381
535
(230)
8,545
106
(15)
(2,525)
6,110(1,485)
377
36
(516)
(83)
9,084
166
(0)
(3,538)5,712(1,361)
599
(149)
(1)
－
(165)
165
(1)
2
(21)
4
(12)
(940)

(899)
3
(165)
(0)
198
(0)
－
(1)
4
(30)
13
(11)
(887)

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2018

(Millions of yen)

III. Cash Flows from Financing Activities
Increase in short-term loans payable
Decrease in short-term loans payable
Repayments of long-term loans payable
Payment of cash dividends
Dividends paid to non-controlling interests
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. Increase (Decrease) in Cash and Cash Equivalents
Resulting from Change of Scope of Consolidation
VIII. Cash and Cash Equivalents at End of Period

11

Six months ended
July 31, 2016

Six months ended
July 31, 2017

502
(184)
(860)
(2,630)
(61)
(0)
(1)
(3,235)－(674)(5,000)(3,355)(62)(1)－(9,093)(2,143)

(206)

(208)
24,297(4,474)30,052(86)－

24,00325,577

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2018(4) Notes on Consolidated Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable.
(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 2018

(Segment Information)
Six months ended July 31, 2016
Information Regarding Net Sales and Profit (Loss) in Each Reporting Segment(Millions of yen)
Reporting Segment
Domestic
Child Care
Baby &
Service
Mother Care
Business
Business
Net sales
Net sales toexternalcustomers
Internal sales
or exchange
betweensegments
Total
Segment profit

Health &Elder Care
Business

Overseas
Business

China
Business

Subtotal

Other
Businesses(Note 1)

Total

AmountAccounted on
Quarterly
Adjustments
Consolidated(Note 2)
Statement of
Income(Note 3)

16,365

3,652

3,537

8,470

13,62845,655647

46,302－

46,302

－

－

－

2,608

113

2,722

－

2,722

(2,722)－

16,365

3,652

3,537

11,07913,741

48,377647

49,024(2,722)

46,302

2,503

80

278

2,346

3,779

8,989

84

9,073

(1,296)

7,777(Notes)1. The “Other Businesses” classification refers to businesses not included in the reporting segments, and consists of ourGroup’s manufacturing subsidiaries, but also of those manufacturing and selling products to companies outside our Group.
2. The negative amount of ¥1,296 million from adjustments in segment profits includes ¥140 million in elimination ofintersegment transactions, and a negative ¥1,437 million in non-allocable operating expenses. Non-allocable operating
expenses are administrative costs of our Group.
3. Segment profits are adjusted to operating income in the quarterly consolidated statement of income.

Six months ended July 31, 2017
Information Regarding Net Sales and Profit (Loss) in Each Reporting Segment(Millions of yen)
Reporting Segment
Domestic
Child Care
Baby &
Service
Mother Care
Business
Business
Net sales
Net sales toexternalcustomers
Internal sales
or exchange
betweensegments
Total
Segment profit

Health &Elder Care
Business

Overseas
Business

China
Business

Subtotal

Other
Businesses(Note 1)

Total

AmountAccounted on
Quarterly
Adjustments
Consolidated(Note 2)
Statement of
Income(Note 3)

17,302

3,759

3,446

8,788

15,097

48,395653

49,048－49,048

－

－

－

3,254

101

3,355

－

3,355

(3,355)－17,302

3,759

3,446

12,043

15,19851,750653

52,404(3,355)49,048

3,058

81

244

2,926

4,414

10,72665

10,792(1,495)9,296(Notes)1. The “Other Businesses” classification refers to businesses not included in the reporting segments, and consists of ourGroup’s manufacturing subsidiaries, but also of those manufacturing and selling products to companies outside our Group.
2. The negative amount of ¥1,495 million from adjustments in segment profits includes a negative ¥30 million inelimination of intersegment transactions, and a negative ¥1,464 million in non-allocable operating expenses. Non-allocable
operating expenses are administrative costs of our Group.
3. Segment profits are adjusted to operating income in the quarterly consolidated statement of income.

13

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending January 2018

2. Changes in Reporting Segments, etc.
In order to understand our profit status of each segment in a more detailed manner, we
decided to report expenses in non-allocable operating expenses associated with the Researchand Development Department, which had been included in the Adjustment section so far, inthe segment profit of each reporting segment starting from the consolidated first three-month
period of the current fiscal year.
The segment information in the consolidated first six-month period in the last fiscal year isadjusted in accordance with the new segment profit calculation method after the above
revision.

14