Summary of Financial Results
for the Third Quarter of Fiscal Year Ending January 2016
[Japanese Standards] (Consolidated)
December 7, 2015
Name of Listed Company: Pigeon Corporation (Stock code: 7956)
Listing: First Section, Tokyo Stock Exchange
Website: www.pigeon.co.jp
Representative: Shigeru Yamashita (President and COO)
Contact person: Tsutomu Matsunaga (Managing Officer, Corporate Planning & Administration Division)/Tel: +81-3-3661-4188
Scheduled Filing Date of Quarterly Report: December 11, 2015
Scheduled Commencement Date of Dividend Payments: ―Preparation of Any Additional Explanatory Materials for Quarterly Financial Results: No
Holding of Any Briefing Session for Quarterly Financial Results: No

1. Consolidated Business Performance for the First Three Quarters of
Fiscal Year Ending January 31, 2016 (February 1 to October 31, 2015)(1) Consolidated Operating Results (cumulative)
Net Sales
3Q ended October 31, 2015

68,319(Millions of yen, rounded down, % figures denote year-on-year change)
Operating Income
Ordinary Income
Net Income

11.7%

11,1283Q ended October 31, 2014
61,167
6.3%(Note) Comprehensive income: 3Q ended October 31, 2015
3Q ended October 31, 2014

15.2%

7,789

22.1%

9,714
15.4%
9,950
11.9%
¥6,341 million (20.4% negative)¥7,968 million (5.7%)

6,377

13.1%

Net Income per Share (¥)
3Q ended October 31, 2015

14.6%

11,463

Diluted Net Income Per
Share (¥)

65.04

－

3Q ended October 31, 2014
53.23－
(Note) Our Group carried out a 3-for-1 stock split with respect to its common stock, effective as of May 1, 2015.
The figures for quarterly net income per share are calculated on the assumption that this stock split had been conducted at the
beginning of the previous fiscal year.

(2) Consolidated Financial Position
Total Assets
3Q ended October 31, 2015

Net Assets

74,002

FY ended January 31, 2015
72,367(Reference) Shareholders’ Equity: 3Q ended October 31, 2015
FY ended January 31, 2015

Equity Ratio (%)

48,79047,297¥47,650 million¥46,164 million

64.4
63.8

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

FY ended January 31, 2015
45.00
60.00
－
－
FY ending January 31, 2016
20.00
－
－
FY ending January 31, 2016
20.00
(Forecast)(Note) Changes in dividend forecasts to the most recent announcement: None
Our Group carried out a 3-for-1 stock split with respect to its common stock, effective as of May 1, 2015.
For the fiscal year ended January 31, 2015, the actual dividend before the relevant stock split is described.

Total
105.0040.00

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

Full year
95,50013.5
15,00017.4
15,10013.5
9,600(Note) Revision of forecasts to the most recent announcement: None
Our Group carried out a 3-for-1 stock split with respect to its common stock, effective as of May 1, 2015.

%

13.6

Yen

80.16

Notes
(1) Changes in major subsidiaries (or changes in specific subsidiaries that affect the scope of consolidation) during theperiod under review: None
New: － (Company name: － ), Excluded: － (Company name: － )(2) Application of any accounting procedures specific to preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting-based estimates, and restatements
1) Changes in accounting policies associated with revision of accounting standards: Yes
2) Changes in accounting policies other than the above 1): None
3) Changes in accounting-based estimates: None
4) Restatements: None
(Note) For further information, please refer to “(3) Changes in Accounting Policies, Changes in Accounting-based Estimates, andRestatements” in “2. Issues Regarding Summary Information (Notes)” on page 5.

(4) Number of outstanding shares (common stock)1) Number of shares outstanding at the term-end (including treasury stock)
3Q ended October 31, 2015: 121,653,486
FY ended January 31, 2015: 121,653,486
2) Number of treasury stock for the period-end
3Q ended October 31, 2015: 1,891,557
FY ended January 31, 2015: 1,889,988
3) Number of average shares outstanding during the period (quarter accumulation)
3Q ended October 31, 2015: 119,762,433
3Q ended October 31, 2014: 119,807,955(Note) Our Group carried out a 3-for-1 stock split with respect to its common stock, effective as of May 1, 2015. The above figures
were calculated on the assumption that this stock split has been conducted at the beginning of the fiscal year ended January
31, 2015.

* Indication regarding the situation of quarterly review procedures
The report of the financial results for this third quarter are not the subject of a quarterly review procedure based on
the Financial Instruments and Exchange Act, and at the time of disclosure of the report, review procedures forquarterly financial statements based on the Financial Instruments and Exchange Act were still in progress.
* Cautionary Statement regarding Performance Forecasts
The forecasts and future projections stated in this report have been prepared on the basis of the information andassumption that shall be reasonable as of the date of announcement of this summary information, and the forecasts
and future projections stated in this report are in no way intended as a promise of achievement as a company. In
addition, the actual results could differ significantly from forecast figures depending on a variety of factors. See thesection “(3) Explanation of Consolidated Performance Forecast and Other Future Predictions” in “1. Qualitative
Information Regarding the Financial Results for the Current Quarter” on page 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 Third Quarter of Fiscal Year Ending January 2016

Table of Contents of the Appendix
1. Qualitative Information Regarding the Financial Results for the Current Quarter.......................... 2(1) Explanation of Business Performance ......................................................................................... 2(2) Explanation of Financial Position ............................................................................................... 4(3) Explanation of Consolidated Performance Forecast and Other Future Predictions .................... 4
2. Issues Regarding Summary Information (Notes)............................................................................. 5(1) Significant Changes in Subsidiaries During the Period Under Review ..................................... .5(2) Application of Any Accounting Procedures Specific to Preparation of Quarterly
Consolidated Financial Statements ............................................................................................ .5(3) Changes in Accounting Policies, Changes in Accounting-based Estimates,
and Restatements ........................................................................................................................ 5
3. Quarterly Consolidated Financial Statement ................................................................................... 6(1) Quarterly Consolidated Balance Sheets ...................................................................................... 6(2) Quarterly Consolidated Statements of Income and Quarterly Consolidated Statement ofComprehensive Income .............................................................................................................. 8
Quarterly Consolidated Statements of Income(Scope of Consolidation of Third Quarter) ............................................................................. 8
Quarterly Consolidated Statement of Comprehensive Income(Scope of Consolidation of Third Quarter)... ............................................................................. 9(3) Notes on Consolidated Financial Statement .............................................................................. 10(Notes Regarding Going Concern Assumptions) ...................................................................... 10(Additional Information) ......................................................................................................... 10(Notes Regarding Substantial Changes in Shareholders’ Equity) ............................................. 10(Segment Information) .............................................................................................................. 111

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

1. Qualitative Information Regarding the Financial Results for the Current Quarter(1) Explanation of Business Performance
During the consolidated nine-month period under review, China's economic slowdown and otherfactors heightened concerns about the global economic recession, and thus the future remains hardto predict. Likewise, the price increase of imported raw materials due to the impact of the yen
depreciation, and the economic recession of emerging countries, caused the sense of uncertainty
over the future to increase in Japan, although personal consumption showed a robust trend, andimprovement could be seen in company earnings and employment conditions. Amid such economic
circumstances, the Group is working on achieving further business growth for this second year
since we started implementing our fifth medium-term business plan (for the period between thefiscal year ended January 2015 and the fiscal year ending January 2017), under the slogan of“Pursuing world class business excellence, think globally, plan agilely, and implement locally”.
Also, as its business policy, our Group aims at expanding its business and improving management
quality by providing the following “Vision 2016”.
< Vision 2016 >i) Strengthening brand power (Global Number One manufacturer of baby and child careproducts)ii) Reinforcing the management system toward a sustainable growth of our Group’s businessiii) Improving management quality by focusing on cash flowiv) Fostering our Group’s global personnel, establishing human resources systems and promoting
its employees’ activitiesv) Further enhancing corporate value
During the consolidated nine-month period under review, we have been developing the abovebusiness policies and strategies for each of our business and function. As a result, net sales
amounted to ¥68,319 million (up 11.7% YOY), due to factors including continuous business growthin the Overseas Business and Domestic Baby and Mother Care Business. Regarding earnings,
operating income rose to ¥11,128 million (up 14.6% YOY), ordinary income recorded ¥11,463
million (up 15.2% YOY), and net income was ¥7,789 million (up 22.1% YOY), which means eachsignificantly exceeded the previous corresponding result. This was due to a reduction of
approximately 1.6 percentage points in the sales cost ratio from the previous same period, as aresult of the efficient utilization of production bases accompanying business expansion.
Our Group has a total of five reporting segments identified as: “Domestic Baby and Mother Care
Business”, “Child-rearing Support Services”, “Health Care and Nursing Care Business”, “Overseas
Business”, and “China Business”. Each segment is outlined below.
Domestic Baby and Mother Care BusinessNet sales of the segment amounted to ¥21,291 million (up 15.8% YOY). Segment profits increasedto ¥3,413 million (up 17.2% YOY), exceeding the results of the previous same period, despite thehigher cost of sales. In January, we launched “Runfee”, a new stroller that easily overcomes level
differences, and in July, we added two new colors for this fall/winter season. Sales and market shareare expanding smoothly. Moreover, during the period under review, we have held a number of
events planned as a part of our direct communications program such as our “Breast Feeding
Seminar” for women expecting to give birth in the near future and a seminar about breastfeeding
while parenting for health care professionals, organized 30 times. A total of approximately 2,300
people have participated. Our Company will continue to make progresses in providing to its
customers more easily accessible information including updates of its merchandise information also
on “Pigeon Info”, which is a portal that supports women during pregnancy, in childbirth, and those2

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

raising children.
Child-rearing Support Services
Net sales of the segment amounted to ¥5,043 million (down 0.0% YOY). Segment profits decreasedto ¥113 million (down 26.6% YOY) due to rises in cost of sales and SG&A expenses. We havelaunched one in-company child-care facility, which we are currently operating while striving to
improve the service quality.
Health Care and Nursing Care BusinessNet sales of the segment amounted to ¥4,950 million (down 2.9% YOY), while the revision of thenursing care insurance system and the competition in the market of consumables continued tointensify. Segment profits decrease to ¥116 million (down 60.8% YOY) due to the impact of adecline in gross profit particularly in the facility routes, among other factors. In February, we
released in this segment “assista ease I and II” wheel chairs for seniors. The assista ease I and II
allow the posture to be kept straight and enables comfortable sitting for a long period of time. In
addition, in April, we launched a new citrus green scent for the indoor “Kaori Kakumei” deodorantseries. The spray type room air freshener eliminates indoor odors caused by problems with leaking
and leaves behind a nice scent. Our Group will continue to focus on marketing products and ensure
sales activities focusing on facility routes are carried out considerately.
Overseas BusinessIn this segment, although management of regions including Korea, Hong Kong, Taiwan, and Russia
was transferred to the China Business Division from this consolidated fiscal year under review, wemanaged to post growth in both sales and profits compared to the previous same period, with net
sales that amounted to ¥18,546 million (up 11.5% YOY), and segment profits that recorded ¥4,243
million (up 16.5% YOY). In May, we began shipping Pigeon's flagship products ―nursing bottles
and nipples― from our new local production plant in India. Going forward, we will continue tostrengthen the sales/distribution system. We are steadily expanding sales of breastfeeding-related
products such as our flagship products, including nipple cream, breast pads, and breast pumps.
Furthermore, we continue to aim at expanding our product categories centered on nursing bottles,
which were sold anew last year. Other efforts in this direction include expanding our business inNorth America and Europe by reinforcing the organizational system of each sales branch based inEuropean countries such as England and Germany.
China BusinessNet sales of the segment amounted to ¥23,004 million (up 24.0% YOY). Although the selling,
general and administrative expenses increased as a result of marketing activities conducted alongwith an active expansion of the business, the segment profits increased to ¥6,568 million (up 16.9%
YOY). This segment recorded an increase in net sales and segment profits from the previous year,
assisted mainly by the effects of steady growth in product categories such as nursing bottles andnipples, due to continuous reinforcement of marketing and sales promotion activities in addition totransferring management of regions including Korea, Hong Kong, Taiwan, and Russia to the China
Business Division from the Overseas Business Division. In May, we launched new skin careproducts. We aim at expanding our business even more, by also focusing on product categories
other than our flagship nursing bottles and nipples, such as renewing disposable diapers to get an
even greater level of absorption. Moreover, the changes in our primary distributors started thisfiscal year were completed during this third quarter.
Other Businesses
Net sales of the segment amounted to ¥956 million (down 1.7% YOY), and the segment profits
decreased to ¥110 million (down 17.0% YOY).
3

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

(2) Explanation of Financial Position(1) Assets
As of October 31, 2015, our Group recorded total assets of ¥74,002 million, up ¥1,635 million fromthe previous consolidated fiscal year ended January 31, 2015. Current assets increased by ¥1,651
million, while fixed assets decreased by ¥16 million.
Current assets increased mainly due to an increase in cash and deposits of ¥2,287 million, an
increase in merchandise and finished goods of ¥854 million, and an increase in raw materials andsupplies of ¥224 million, despite the decrease in notes and accounts receivable – trade of ¥2,126
million.
Fixed assets diminished due to a decrease in tools, furniture and fixtures included in other tangible
fixed assets of ¥167 million.
(2) Liabilities
As of October 31, 2015, our Group recorded total liabilities of ¥25,212 million, up ¥142 million
from the previous consolidated fiscal year ended January 31, 2015. Current liabilities had anincrease of ¥831 million, while fixed liabilities had a decrease of ¥689 million.
Current liabilities increased mainly due to an increase in current portion of long-term loans payableof ¥923 million and an increase in accrued bonuses to employees of ¥535 million, despite thedecrease in income taxes payable of ¥420 million.
Fixed liabilities decreased mainly due to a decrease in long-term borrowings of ¥928 million
despite an increase in deferred tax liabilities included in other fixed liabilities of ¥163 million.
(3) Net Assets
As of October 31, 2015, our Group recorded total net assets of ¥48,790 million, up ¥1,493 million
from the previous consolidated fiscal year ended January 31, 2015.
Net assets increased mainly due to an increase in retained earnings of ¥2,998 million, despite thedecrease in foreign currency translation adjustment of ¥1,523 million.
(3) Explanation of Consolidated Performance Forecast and Other Future Predictions
For the “Fifth Medium-Term Business Plan (for the period between fiscal year ended January 2015
and fiscal year ending January 2017)”, our Group has put up the following slogan, “Pursuing worldclass business excellence, think globally, plan agilely, and implement locally.” We will further
develop and enhance our business operating system, while pursuing in the improvement ofmanagement quality and steadily implementing the measures grounded on the newly formulated
strategies for each business segment and the functional strategy that serves as the foundation
thereof.
During the consolidated fiscal year under review (from February 1, 2015 to January 31, 2016), we
will continue to expand and enrich business in the existing markets concentrated in China and North
America regarding the overseas business which our Group positions as a growing field, even though
it is important to consider the trends in the American financial measures and the crude oil price, thefuture of Europe, China and emerging economies as well as geopolitical risks. Moreover, we will
aim at further improvement in business performance through actively pursuing new markets. In thisconsolidated fiscal year, the second year of our fifth medium-term business plan, we will strive toensure completion of our plans.
The performance forecast for the entire year, released on March 4, 2015, has been revised upwardon September 7, 2015. Therefore, we forecast net sales of ¥95,500 million (up 3.8% compared withthe previous forecast), operating income of ¥15,000 million (up 7.9% compared with the previous
forecast), ordinary income of ¥15,100 million (up 7.9% compared with the previous forecast) andnet income of ¥9,600 million (up 7.9% compared with the previous forecast).

4

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

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

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

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheets(Thousands of yen)

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
Other current liabilities
Total Current Liabilities
II. Fixed Liabilities:
Long-term borrowings
Net defined benefit liability
Provision for directors and corporate
auditors' retirement benefits
Other fixed liabilities
Total Fixed Liabilities
Total Liabilities

6

At January 31, 2015

At October 31, 2015

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

23,878,007
13,152,026
6,753,563
332,846
2,582,132
2,014,323(33,937)
48,678,962

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

7,213,456
6,079,935
8,237,426
21,530,818

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

202,369
1,416,258
1,618,627

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

2,211,532(37,472)
2,174,060
25,323,505
74,002,468

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

4,429,455
520,370
1,064,787
2,123,692
1,114,666
1,318,999
63,96738,3835,430,086
16,104,408

5,928,235
315,383

5,000,000
327,617342,566

400,959

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

3,379,023
9,107,599
25,212,008

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

(Thousands of yen)
At January 31, 2015

At October 31, 2015

Capital stock

5,199,597

5,199,597

Capital surplus

5,180,246

5,180,246

Retained earnings

31,383,875

34,382,691

Treasury stock(942,114)(947,007)

Total Shareholders’ Equity

40,821,604

43,815,528

36,811

51,977

Foreign currency translation adjustment

5,306,072

3,782,965

Total Accumulated Other Comprehensive Income

5,342,883

3,834,943

III. Minority Interests

1,132,727

1,139,987

Total Net Assets

47,297,215

48,790,460

Total Liabilities and Net Assets

72,367,080

74,002,468

NET ASSETS
I. Shareholders’ Equity:

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

7

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

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

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

8

Nine months ended
October 31, 2014
61,167,802
33,307,354
27,860,447
56,71342,73627,874,424
18,160,294
9,714,129

Nine months ended
October 31, 2015
68,319,511
36,086,364
32,233,146
46,271
56,40032,223,017
21,094,023
11,128,993

131,894

206,998

11,16135,934

38,676－347,385
529,117－229,694
230,972
703,600

47,571
210,348－
35,307
293,227
9,950,020

66,765258,282
19,32524,986369,360
11,463,233
9,804
9,804

6,267
6,267
5,842
19,514
207,300
232,656
9,723,631
2,943,000
276,035
3,219,036
6,504,594

822
10,558－
11,381
11,461,656
3,429,695
52,7783,482,473
7,979,182

127,335
6,377,259

189,854
7,789,328

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

Quarterly Consolidated Statement of Comprehensive Income(Scope of Consolidation of Third Quarter)(Thousands of yen)

Income before Minority Interests
Other Comprehensive Income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total Other Comprehensive Income
Quarterly Comprehensive Income(Break down)
Quarterly comprehensive income on parent company
Quarterly comprehensive income on minority
interests

9

Nine months ended
October 31, 2014
6,504,594

Nine months ended
October 31, 2015
7,979,182

2,065
1,461,419
1,463,484
7,968,079

15,166(1,652,984)(1,637,817)
6,341,365

7,788,848

6,281,388

179,230

59,976

Pigeon Corporation (7956) Summary of Financial Results for the Third Quarter of Fiscal Year Ending January 2016(3) Notes on Consolidated Financial Statement(Notes Regarding Going Concern Assumptions)Not applicable.
(Additional Information)(Modification of Amount of Deferred Tax Assets and Deferred Tax Liabilities Due to Tax Rate
Change of Corporate Income Tax, etc.)
The Act on the Partial Revision of the Income Tax Act, etc. (Act No. 9 of 2015) and the Act on
Partial Revision of Local Tax Act, etc. (Act No. 2 of 2015) were issued on March 31, 2015, andreductions of corporate income tax, etc. are applied to the consolidated fiscal year starting from
April 1, 2015. Due to the change, the statutory effective tax rate used to calculate deferred tax assets
and deferred tax liabilities was changed from 35.64%. 33.10% is applied to temporary differences,
etc. that are expected to be dissipated in the consolidated fiscal year starting on February 1, 2016
while 32.34% is applied to temporary differences, etc. that are expected to be dissipated in the
consolidated fiscal year starting on February 1, 2017 and later.
The impact due to this tax rate change is minor.
(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable.

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

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

Sub Total

Other
Businesses(Note 1)

Total

5,096,668 13,560,993 18,106,770 60,194,445

973,357

61,167,802

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

18,385,948

5,044,063

－

－

Total

18,385,948

5,044,063

Segment profit (loss)

2,913,766

154,508

Internal sales
or exchange
betweensegments

Overseas
Business－ 3,073,202

China
Business－

61,167,802

3,519,803－

3,519,803 (3,519,803)－

5,096,668 16,634,196 18,553,371 63,714,248

973,357

64,687,605 (3,519,803)

61,167,802

132,798

12,759,115 (3,044,985)

9,714,129

297,565

3,642,451

446,600

AmountAccounted on
Quarterly
Adjustments
Consolidated(Note 2)
Statements ofIncome(Note 3)5,618,023 12,626,316(Notes)1. The “Other Businesses” classification refers to businesses not included in the reporting segments, which are mainly ourGroup’s production subsidiaries manufacturing, and those selling products to companies outside our Group.
2. The negative amount of ¥3,044,985 thousand from adjustments in segment profits includes a ¥31,876 thousand inelimination of intersegment transactions, and a negative ¥3,076,862 thousand in non-allocable operating expenses.
Non-allocable operating expenses are mainly administrative costs of our Group.
3. Segment profits are adjusted to operating income in the quarterly consolidated statements of income.

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

Sub Total

Other
Businesses(Note 1)

Total

4,950,076 13,453,005 22,623,767 67,362,703

956,807

68,319,511

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

21,291,865

5,043,988

－

－

Total

21,291,865

5,043,988

Segment profit (loss)

3,413,406

113,424

Internal sales
or exchange
betweensegments

Overseas
Business

68,319,511－

5,474,395 (5,474,395)－

4,950,076 18,546,421 23,004,746 72,837,099

956,80773,793,906 (5,474,395)

68,319,511

110,151

14,565,624 (3,436,630)

11,128,993

116,7024,243,832

380,978－

5,474,395－

5,093,416

China
BusinessAmountAccounted on
Quarterly
Adjustments
Consolidated(Note 2)
Statements ofIncome(Note 3)6,568,106 14,455,472(Notes)1. The “Other Businesses” classification refers to businesses not included in the reporting segments, which are mainly ourGroup’s production subsidiaries manufacturing, and those selling products to companies outside our Group.
2. The negative amount of ¥3,436,630 thousand from adjustments in segment profits includes a negative ¥50,449 thousandin elimination of intersegment transactions, and a negative ¥3,386,181 thousand in non-allocable operating expenses.
Non-allocable operating expenses are mainly administrative costs of our Group.
3. Segment profits are adjusted to operating income in the quarterly consolidated statements of income.
4. Due to the transfer of management of businesses in regions including Korea, Hong Kong, Taiwan, and Russia from
“Overseas Business” to “China Business” from this consolidated fiscal year under review, intersegment transactions
between “Overseas Business” and “China Business” increased.

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