Summary of Financial Results
for the Third Quarter of Fiscal Year Ending December 2023
[Japanese Standards] (Consolidated)
November 8, 2023
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: November 9, 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)

1. Consolidated Business Performance for the First Three Quarters of Fiscal
Year Ending December 31, 2023 (January 1 to September 30, 2023)(1) Consolidated Operating Results (cumulative)

3Q ended September 30, 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
72,942
3.2%
10,183
11.9%
11,149
3.5%
7,281
4.8%

3Q ended September 30, 2022
70,707
1.8%(Note) Comprehensive income: 3Q ended September 30, 2023
3Q ended September 30, 2022

9,103(12.8)%
10,774(8.5)%¥11,858 million (10.4% negative)¥13,232 million (40.6%)

Net Income per Share (¥)6,948(3.3)%

Diluted Net Income per
Share (¥)

3Q ended September 30, 2023

60.86

－

3Q ended September 30, 2022

58.07

－

(2) Consolidated Financial Position
Total Assets
3Q ended September 30, 2023

Net Assets

105,432

FY ended December 31, 2022
101,733(Reference) Shareholders’ Equity: 3Q ended September 30, 2023
FY ended December 31, 2022

Equity Ratio (%)

82,414

74.8

79,952¥78,865 million¥76,695 million

75.4

2. Cash Dividends
Annual Dividend (¥)
1Q-end2Q-end3Q-endFY ended December 31, 2022
38.00－
FY ending December 31, 2023
38.00－
FY ending December 31, 2023
(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 Year Ending
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)
3Q ended September 30, 2023: 121,653,486
FY ended December 31, 2022: 121,653,486
2) Amount of treasury stock at the period-end
3Q ended September 30, 2023: 2,063,781
FY ended December 31, 2022: 1,996,488
3) Average number of shares outstanding during the period (quarter accumulation)
3Q ended September 30, 2023: 119,626,300
3Q ended September 30, 2022: 119,649,732(Note) Amount of treasury stock at the period-end includes Company shares held by the board incentive plan (BIP) trust forcompensation of directors (169,948 shares as of 3Q ended September 30, 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 thetreasury 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 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 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 Predictions ............................... 4
2. 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 Third Quarter)................................................................................. 8
Quarterly Consolidated Statement of Comprehensive Income(Scope of Consolidation of Third Quarter)................................................................................. 9(3) Notes on Consolidated Financial Statements ............................................................................ 10(Notes Regarding Going Concern Assumptions) ...................................................................... 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 December 2023

1. Qualitative Information Regarding the Financial Results for the Current Quarter(1) Explanation of Business Performance
1) Performance Overview
During the consolidated first-nine-month period under review, both the Japanese and global
economies proceeded on a recovery keynote, though challenges remained. The Japanese economy
staged a gradual recovery. As restrictions on movement imposed in response to COVID-19 wereeased, economic activity moved toward normalization and inflows of foreign tourists rose,
supporting a recovery in personal consumption. In the global economy as well, a recovering trend
was observed and is expected to continue. However, the effects of monetary tightening, as well as
rising prices and fluctuations in financial and capital markets, fed lingering uncertainty about thenear-term outlook.
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 were favorable during the period under review. Buoyed by strong results in theJapan Business, China Business and Lansinoh Business, as well as depreciation in the Japanese yen,
net sales improved to ¥72,942 million (up 3.2% YOY). This increase in revenue bolstered earnings,
while marine shipping costs eased and the Group optimized its product sales ratio. These factors
boosted gross profit margin by 2.3 points YOY, more than offsetting higher selling, general andadministrative expenses. Operating income increased to ¥10,183 million (up 11.9% YOY), ordinary
income grew to ¥11,149 million (up 3.5% YOY) and net income attributable to owners of parent
advanced to ¥7,281 million (up 4.8% YOY).
The main exchange rates used in the preparation of this nine-month period’s financial statements for
the Company’s overseas consolidated subsidiaries (revenues and expenses) are as follows:
・1 US$: 138.17 yen (128.31 yen)
・1 CNY: 19.62 yen (19.38 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 ¥27,572 million(up 3.2% YOY), and segment profit was ¥1,638 million (up 77.3% YOY).
In the Baby Care Business (childcare and feminine products), net sales grew YOY, buoyed partly
by price revisions implemented in February on baby-related products such as nursing bottles andnipples. Sales of core products such as nursing bottles, nipples and baby skincare products, as well
as of consumables such as baby wipes, were favorable, benefiting from reinvigorated sales efforts.
In August 2023, the Baby Care Business launched SHUPOT, an electric nose cleaner that quickly
draws out mucus that can collect at the back of babies’ noses, and Bonyu Jikkan Parts, a product2

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

series that enables mothers to repurpose the nursing bottles that are so filled with memories. In
February and again in September, prices were revised on certain baby-related products, including
nursing bottles, nipples and baby skincare products.
Pigeon conducted a number of initiatives in communications with consumers. The Company
launched an occasional series on Insta Live that demonstrates the advantages of Pigeon products
through direct interaction. Including archived material, the channel has been viewed by over
100,000 people since its inception. Pigeon also took steps to strengthen customer engagement. The
Company launched Akachan to Sonae no Wa Suishin Project, which aims to keep babies safe whendisasters strike and make urban environments more welcoming to babies. The project has earned
endorsements from 32 local governments in 23 prefectures across Japan.
Pigeon Home Products Corporation, a Pigeon Group company that produces skincare and otherproducts, completed a plant in Fuji, Shizuoka Prefecture, transferring the operations of the former
No. 1 Plant and No. 2 Plant there. The new plant began full-scale operation in September 2023.
Aiming to create customer value through new skincare and other products, Pigeon Home Products
is strengthening its development framework, improving productivity and pouring efforts into
environmental measures.
In products for health and elder care, Pigeon continued to burnish its Habinurse elder-care brand.
The brand launched Liquid Thickener—Simply Add, a product that adjusts the viscosity offoodstuffs and can be used even in carbonated beverages. Also, in February and again in September,prices were revised on some health- and elder-care products.
Regarding child care service, we currently provide services at 61 in-company child-care facilities,
and shall continue to develop this business further while striving to improve the quality of service
content.
China BusinessNet sales in this segment amounted to ¥27,301 million (up 4.1% YOY), and segment profit was¥8,613 million (up 6.3% YOY).
In mainland China, net sales were little changed YOY in local-currency terms. While net sales ofnursing bottles and nipples, our mainstay products, were strong, sales of consumables struggled.
Net sales in the third quarter (July to September 2023) were affected by a rebound from the same
period of the previous fiscal year, when China was recovering from lockdowns imposed in
Shanghai.
As part of efforts to respond to China’s declining birthrate, the Group made concerted efforts toextend the utility of many products to older children. The Group expanded sales of not only core
baby products but also the Shizen Rinyu Series of nursing bottles for older babies, launched in June
2023, and skincare products for children, rolled out at the end of 2022. In consumer
communications, the Group took a number of steps to drive sustained business growth. The Group
strengthened sales through Douyin, the mainland China version of the short-video platform TikTok,and made active use of digital marketing tools such as social media and live broadcasts. The Groupalso reinforced sales promotions at bricks-and-mortar stores and activities at hospitals and maternity
clinics.
In South Korea, where Group operations are managed through this segment, the Pigeon Groupbegan reorganizing its distribution framework in the consolidated first-nine-month period underreview. Using local sales subsidiaries as its base, the Group is strengthening sales and marketing
efforts in South Korea, seeking to attract new customers and reinforce relationships with existingcustomers. Finally, the Group continued to strengthen efforts to boost sales of baby products under
the Pigeon brand in the North American market.
Singapore BusinessNet sales of the segment amounted to ¥10,118 million (down 6.1% YOY), and segment profit was¥1,225 million (down 38.1% YOY).
This segment is responsible for operations in the ASEAN region and India. Net sales declined YOY
amid a rebound and related shipping adjustments from the rapid recovery of the previous year, as
3

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

COVID-19-related restrictions were lifted in major markets. In Singapore, the Group reinforced
sales of core products. Leading products in this effort included nursing bottles made with T-Ester, a
new material as transparent as glass, and the Natural Botanical Baby skin-care series, produced withnatural ingredients to be gentle on babies’ skin and friendly to the environment. The Group willcontinue to advance the development and launch of products for the upper-middle class and higher
income brackets and conduct active deployment of sales and marketing activities with the aim ofachieving market penetration for Group brands.
Lansinoh BusinessNet sales of the segment amounted to ¥13,651 million (up 10.2% YOY), and segment profit
increased to ¥881 million (up 84.8% YOY).
In North America, a vital market for this segment, net sales retreated YOY in local-currency terms.
Shipping delays with major business partners in the consolidated second quarter were resolved.
However, market competition for consumables intensified and special demand for ourbreastfeeding-related products ran its course, following the end of a shortage of powdered-milk
supplies in the Unites States. In contrast, net sales advanced in Europe, notably in Germany and theUnited Kingdom, paced by nipple creams, a core product line. In August the Group conducted theNorth American launch of Wearable Breast Pump, a product worn under clothing to enable
comfortable, hands-free pumping of breast milk. Sales in both Europe and North America werefavorable for prenatal and postnatal care products, a new category. The Group will expand its
mainstay line of products to support breastfeeding and expand products in new categories, while
striving to bolster its e-commerce presence and brand.
(2) Explanation of Financial Position(Assets)
As of September 30, 2023, our Group recorded total assets of ¥105,432 million, up ¥3,698 million
from the previous consolidated fiscal year ended December 31, 2022. Current assets increased by¥946 million, and fixed assets increased by ¥2,752 million.
Current assets increased mainly due to increases in notes and accounts receivable - trade of ¥2,824
million and in merchandise and finished goods of ¥738 million, despite a decrease in cash anddeposits of ¥3,180 million.
Fixed assets increased mainly due to an increase in buildings and structures of ¥4,109 million,
despite a decrease in other tangible fixed assets of ¥1,235 million.
(Liabilities)
As of September 30, 2023, our Group recorded total liabilities of ¥23,017 million, up ¥1,236
million from the previous consolidated fiscal year ended December 31, 2022. Current liabilities
increased by ¥847 million, and fixed liabilities increased by ¥389 million.
Current liabilities increased mainly due to an increase in other current liabilities of ¥885 million.
Fixed liabilities increased mainly due to an increase in other fixed liabilities of ¥406 million.
(Net Assets)
As of September 30, 2023, our Group recorded total net assets of ¥82,414 million, up ¥2,461
million from the previous consolidated fiscal year ended December 31, 2022.
Net assets increased mainly due to an increase in foreign currency translation adjustment of ¥4,137
million, despite a decrease in retained earnings of ¥1,871 million.
(3) Explanation of Consolidated Performance Forecast and Other Predictions
The Group’s performance forecast for the full fiscal year ending December 31, 2023 is unchanged
from the forecast announced when the Group announced its results for the fiscal year ended
December 31, 2022, on February 14, 2023.
In the consolidated fourth quarter (October to December 2023), the Group will bring forward andredouble efforts to achieve stable business growth in mainland China, a key market for Pigeon.

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

Challenging conditions are expected to persist there, including a declining birthrate, slowing
economic growth, uncertainty in consumption trends and other market factors. In the Singapore
Business, Lansinoh Business and Japan Business, the Group will implement resolute and vigorous
measures to achieve sustained growth in the following and subsequent years, including reinforced
efforts to promote sales of new products.

5Pigeon Corporation (7956) Summary of Financial Results for the Third 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

6

At September 30,
2023

34,283
15,975
10,529
632
4,156
1,793
(226)
67,143

31,103
18,79911,267
606
4,136
2,434
(258)
68,08910,4997,559
12,07430,132

14,608
7,707
10,83833,154

380
1,928
2,308

279
1,522
1,801

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

2,392
(4)
2,387
37,343
105,432

5,066
1,542
－
989
920
7
7,036
15,563

4,290
1,530
72
1,229
1,359
6
7,921
16,410

566
225
5,425
6,217
21,781

597
176
5,832
6,607
23,017

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

(Millions of yen)
At December 31, 2022

At September 30,
2023

Capital stock

5,199

5,199

Capital surplus

5,132

5,132

Retained earnings

60,76258,890Treasury stock(1,387)(1,488)

Total Shareholders’ Equity

69,70667,73326

32

Foreign currency translation adjustment

6,962

11,099Total Accumulated Other Comprehensive Income

6,989

11,132

III. Non-controlling Interests

3,257

3,548

Total Net Assets

79,95282,414

Total Liabilities and Net Assets

101,733

105,432

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 December 2023

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement ofComprehensive Income
Quarterly Consolidated Statement of Income(Scope of Consolidation of Third 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
Other non-operating expenses
Total Non-operating Expenses
Ordinary Income
VI. Extraordinary Income:Gain on sales of fixed assets
Subsidy income
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 fixed assets
Total 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

8

Nine months ended
September, 2022
70,70737,51033,19724,093
9,103

Nine months ended
September 30, 2023
72,94237,01635,92525,741
10,183

121
12
761
631
240
1,768

170
12
634
114
144
1,076

69
27
97
10,77474
35
110
11,149

5
－
5

9
19
28

1
29
－
31
10,749
3,674
(35)
3,638
7,110

2
14
19
37
11,141
3,732
(3)
3,729
7,412

162

131

6,948

7,281

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

Quarterly Consolidated Statement of Comprehensive Income(Scope of Consolidation of Third 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

Nine months ended
September, 2022
7,110

Nine months ended
September 30, 2023
7,412

10
6,112
6,122
13,232

5
4,439
4,445
11,858

12,696

11,424536

434

Pigeon Corporation (7956) Summary of Financial Results for the Third 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.

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

(Segment Information)
Nine months ended September 30, 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
Adjustments(Note 1)

Total
Japan Business

China Business Singapore Business Lansinoh BusinessNet sales
Net sales toexternal customers

25,27225,821

7,241

12,37270,707－70,707

Internal sales or
exchange between
segments

1,453

398

3,531

12

5,396

(5,396)－

Total

26,726

26,22010,772

12,384

76,104(5,396)70,707

Segment profit

924

8,100

1,978

476

11,480(2,376)

9,103(Notes)1. The negative amount of ¥2,376 million from adjustments in segment profit includes negative ¥23 million in eliminationof intersegment transactions and negative ¥2,353 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.

Nine months ended September 30, 2023
1. Information Regarding Net Sales and Profit (Loss) in Each Reporting Segment(Millions of yen)
Reporting Segment
Adjustments(Note 1)

Total
Japan Business

China Business Singapore Business Lansinoh BusinessAmountAccounted on
Quarterly
Consolidated
Statement of
Income(Note 2)

Net sales
Net sales toexternal customers

25,877

26,707

6,711

13,64572,942－

72,942

Internal sales or
exchange between
segments

1,695

594

3,406

5

5,702

(5,702)－

Total

27,572

27,301

10,11813,65178,644(5,702)

72,942

Segment profit

1,638

8,613

1,225

881

12,359(2,175)

10,183(Notes)1. The negative amount of ¥2,175 million from adjustments in segment profit includes ¥78 million in elimination ofintersegment transactions and negative ¥2,254 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.

11