Summary of Financial Results
for the Second Quarter of Fiscal Year Ending December 2020
[Japanese Standards] (Consolidated)
August 6, 2020
Name of Listed Company: Pigeon Corporation (Stock code: 7956)
Listing: First Section, 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: August 7, 2020
Scheduled Commencement Date of Dividend Payments: September 7, 2020
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 Half of Fiscal YearEnding December 31, 2020 (January 1 to June 30, 2020)(1) Consolidated Operating Results (cumulative)

2Q ended June 30, 2020

(Millions of yen, rounded down, % figures denote year-on-year change)
Net Income
Net Sales
Operating Income
Ordinary Income
Attributable to
Owners of Parent
48,431(7.8)%
8,031(13.2)%
8,532(11.2)%
5,855(10.8)%

2Q ended July 31, 201952,519(0.6)%
9,257(15.1)%
9,608(Note) Comprehensive income: 2Q ended June 30, 2020
¥5,217 million (18.4% negative)
2Q ended July 31, 2019
¥6,393 million (1.4% negative)
Net Income per Share (¥)(17.7)%

6,565(19.0)%

Diluted Net Income per
Share (¥)

2Q ended June 30, 2020

48.91

－

2Q ended July 31, 2019

54.83

－

(2) Consolidated Financial Position
Total Assets
2Q ended June 30, 2020

Net Assets

90,315Equity Ratio (%)

71,03375.7

FY ended December 31, 201990,491
70,463(Reference) Shareholders’ Equity: 2Q ended June 30, 2020
¥68,335 million
FY ended December 31, 2019 ¥67,722 million

74.8

2. Cash Dividends
Annual Dividend (¥)
1Q-end2Q-end3Q-endFY ended December 31, 2019
35.00－
FY ending December 31, 2020
36.00－
FY ending December 31, 2020
(Forecast)(Note) Changes in dividend forecasts from the most recent announcement: None

Year-end

Total

－

35.00

70.00

－

36.00

72.00

3. Consolidated Business Performance Forecasts for the Fiscal Year Ending
December 31, 2020 (January 1 to December 31, 2020)
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% Millions of Yen%

Yen

98,50013,40013,900
9,600
80.17
to
to
to
to
to
－
－
－
－
102,400
15,50016,00010,90091.03(Notes) 1. Revision of forecasts from the most recent announcement: None
2. The previous consolidated accounting year was the 11 months from February 1, 2019 to December 31, 2019 due to thechange in fiscal period. As such, year on year changes have not been included in the above table.
Full year

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)
2Q ended June 30, 2020: 121,653,486
FY ended December 31, 2019: 121,653,486
2) Amount of treasury stock at the period-end
2Q ended June 30, 2020: 2,017,626
FY ended December 31, 2019: 1,926,426
3) Average number of shares outstanding during the period (quarter accumulation)
2Q ended June 30, 2020: 119,715,535
2Q ended July 31, 2019: 119,751,859(Note) Amount of treasury stock at the period-end includes Company shares held by the board incentive plan (BIP) trust forcompensation of directors (124,800 shares as of 2Q ended June 30, 2020; 33,600 shares as of FY ended December 31,2019). 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 Second Quarter of Fiscal Year Ending December 2020

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 Second Quarter) .......................................................................... 7
Quarterly Consolidated Statement of Comprehensive Income(Scope of Consolidation of Second Quarter) ............................................................................. 8(3) Quarterly Consolidated Statements of Cash Flows... .................................................................. 9(4) Notes on Consolidated Financial Statements ............................................................................ 11(Notes Regarding Going Concern Assumptions) ...................................................................... 11(Notes Regarding Substantial Changes in Shareholders’ Equity) ............................................. 11(Segment Information) .............................................................................................................. 111

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending December 2020

1. Qualitative Information Regarding the Financial Results for the Current Quarter(1) Explanation of Business Performance
Regarding the business environment surrounding the Group during the consolidated first six-month
period under review, the spread of coronavirus disease 2019 (COVID-19) continued to cause adecline in global economic activities. In Japan, the emergency declaration announced in April led tothe continued cancellation of large-scale events, shortened hours or temporary closure of retailbusinesses, as well as the voluntary decision to stay home by consumers. This resulted in increased
future uncertainty regarding the economy and consumer trends. Furthermore, in other countries
throughout the world, economic activity has stagnated due to the start of government restrictions on
travel and behavior, as well as lockdowns. The end of COVID-19 cannot be foreseen, and future
uncertainty has further increased.
Amid such economic circumstances, the Group announced the Seventh Medium-Term Business Plan(for the period between the fiscal year ending December 2020 and the fiscal year ending December2022) in February 2020, and formulated three basic strategies (brand strategy, core product strategy,
and regional strategy). In the Plan, with a focus on these basic strategies, the Group will work to
implement various measures for business growth, as well as to realize our purpose which is “we wantto make the world more baby-friendly by furthering our commitment to understanding and addressing
babies' unique needs.”
Business performance during the consolidated first six-month period under review was as follows.
Net sales amounted to ¥48,431 million (down 7.8% YOY).
Regarding earnings, due to factors such as decreased sales and an increased selling, general andadministrative expense ratio, operating income was ¥8,031 million (down 13.2% YOY), ordinary
income was ¥8,532 million (down 11.2% YOY), and quarterly net income attributable to owners ofparent was ¥5,855 million (down 10.8% 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$: 108.26 yen (110.05 yen)
・1 CNY: 15.39 yen (16.20 yen)
Note: Figures in parentheses represent the exchange rate in the same period of the previous fiscal
year.
Previously, this report consisted of information from six Group reporting segments: the Domestic
Baby & Mother Care Business, Child Care Service Business, Health & Elder Care Business, China
Business, Singapore Business, and Lansinoh Business. However, as a result of the reorganization of
December 16, 2019, from the consolidated first quarter of the current fiscal year, the Japan Businesssegment now aggregates the manufacturing and sales business conducted outside the Group by
domestic subsidiaries included in the segments of Domestic Baby & Mother Care Business, Child
Care Service Business, Health & Elder Care Business, and Other. As a result, this report now
consists of four segments.
Each segment is outlined below.
The following year-on-year comparisons are based on figures calculated using the calculation
method after changing the figures for the same period of the previous year.
Japan BusinessThis segment consists of the Domestic Baby & Mother Care Business, Child Care Service Business,and Health & Elder Care Business. Overall net sales in this segment were ¥22,584 million (down
10.5% YOY) and segment profit was ¥1,580 million (down 40.5% YOY).
In the category of products for babies and mothers, during the consolidated first six-month period
under review, the number of foreign tourists visiting Japan decreased significantly year-on-year due
2

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending December 2020

to the spread of COVID-19. As a result, net sales of product groups with particularly high inbounddemand were down year-on-year.
In the category of products for health and elder care, during the consolidated first six-month period
under review, a higher level of hygienic awareness led to increased demand for some products, andnet sales rose year-on-year.
Regarding child care service, we currently provide services to a total of seventy-one facilities
throughout Japan, and shall continue to develop this business further while striving to improve thequality of service content.
Profit was down year-on-year due to factors including a decrease in net sales, mainly for products
for babies and mothers, and a declining gross profit margin caused by a worsening product mix.
Additionally, from the perspective of preventing the spread of COVID-19, we canceled all
consumer events that are part of direct communication activities. Instead, we opened a new“Pigeon: Pregnancy and Child Care Service” account on Instagram, and started to provide support
to mothers and fathers by periodically sending out tips and useful information on child-rearing
under the supervision of experts.
China BusinessNet sales in this segment amounted to ¥17,456 million (down 3.3% YOY), and segment profit also
decreased to ¥6,118 million (down 3.1% YOY).
The spread of COVID-19 in China is nearing an end. The distribution functions of major cities havealmost recovered to normal, and corporate activities and consumption activities are gradually
returning. In the e-commerce channel which is the focus of the Group, sales were strong during 618,
which is one of the largest e-commerce shopping events throughout the year in China. Conversely,
tough conditions remained in off-line channels, and overall net sales were down slightly
year-on-year. Profit was down year-on-year due to factors including a decrease in gross profit
caused by a decline in net sales.
In terms of net sales for this segment on a local currency basis in China, sales of nursing bottles andnipples, our main products, recovered to nearly the same level year-on-year. Overall, net sales on a
local currency basis were up year-on-year.
Singapore BusinessNet sales of the segment amounted to ¥6,443 million (down 9.3% YOY), while segment profit
increased to ¥1,257 million (up 4.3% YOY).
In the ASEAN region and India, which are under the supervision of this segment, COVID-19
continued to spread and the virus continues to have a significant impact. In particular, in India andMalaysia, the government lockdown has resulted in the Group’s sales offices and plants in India
stopping operations for an approximately 8-week period from late March to the end of May, and theGroup’s sales offices in Malaysia stopping operations for an approximately 7-week period from lateMarch to mid-May. Other countries and regions are being strongly impacted by measures such as
voluntary stay-at-home activities, shortened hours/temporary closures of retail stores, andstagnating corporate activities. As a result, net sales in this segment were down year-on-year.
Earnings were up year-on-year mainly due to a decrease in the sales cost ratio at manufacturingsubsidiaries in Thailand, as well as other factors such as a decrease in selling, general andadministrative expenses caused by voluntary cessation of activities in response to COVID-19.
Lansinoh BusinessNet sales of the segment amounted to ¥6,312 million (down 4.0% YOY), and segment profit
decreased to ¥907 million (down 2.0% YOY).
COVID-19 has severely impacted North America and Europe. However, sales of nipple care creams,
our main product, and breast-feeding related products including consumable products were strong,particularly in the e-commerce channel. In North America, sales of breast pumps through the DME(Durable Medical Equipment) channel and the hospital/maternity clinic channel grew, and theGroup is implementing further enhancement and expansion. Furthermore, in order to further expand
business in the Chinese market (Lansinoh Laboratories Shanghai) and Europe, in addition to3

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending December 2020

strengthening e-commerce, the Group is implementing marketing activities, brand strengthening
activities, etc.
(2) Explanation of Financial Position(Assets)
As of June 30, 2020, our Group recorded total assets of ¥90,315 million, down ¥176 million fromthe previous consolidated fiscal year ended December 31, 2019. Current assets increased by ¥934
million, while fixed assets decreased by ¥1,110 million.
Current assets increased mainly due to increases in cash and deposits of ¥1,187 million, in raw
materials and supplies of ¥540 million, and in merchandise and finished goods of ¥401 million,
despite a decrease in notes and accounts receivable - trade of ¥1,187 million.
Fixed assets decreased mainly due to a decrease in tangible fixed assets, namely buildings andstructures, of ¥448 million, as well as a decrease in other intangible fixed assets of ¥512 million.
(Liabilities)
As of June 30, 2020, our Group recorded total liabilities of ¥19,281 million, down ¥746 million
from the previous consolidated fiscal year ended December 31, 2019. Both current and fixedliabilities decreased by ¥459 million and ¥286 million, respectively.
Current liabilities decreased mainly due to a decrease in other current liabilities of ¥995 million,
despite increases in notes and accounts payable - trade of ¥221 million and in income taxes payableof ¥281 million.
Fixed liabilities decreased mainly due to a decrease in other fixed liabilities of ¥352 million.
(Net Assets)
As of June 30, 2020, our Group recorded total net assets of ¥71,033 million, up ¥570 million fromthe previous consolidated fiscal year ended December 31, 2019.
Net assets increased mainly due to an increase in retained earnings of ¥1,664 million, despite adecrease in foreign currency translation adjustment of ¥650 million.
(3) Explanation of Consolidated Performance Forecast and Other Future Predictions
Regarding the global spread of COVID-19 in Japan and other countries throughout the world,
although there are signs that the virus reaching an end in China, the spread continues in othercountries and regions. It is unknown when COVID-19 will end on a global scale. In the“Announcement: Revision of Consolidated Earnings Forecast for the Fiscal Year Ending December
31, 2020” that was released on June 4, 2020, the Group revised the earnings forecast for the fiscal
year ending December 31, 2020. There were no significant changes in the situation as of the end of
the consolidated first six-month period under review, and the revised values will be kept the same.
We are still investigating the impact of the global outbreak of COVID-19 on our business results forthe fiscal year ending December 31, 2020. If any matters requiring disclosure arise, we will
immediately make an official announcement.

4

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending December 2020

2. Quarterly Consolidated Financial Statements and Main Notes(1) Quarterly Consolidated Balance Sheets(Millions of yen)
At December 31, 2019ASSETS
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
Income taxes payable
Accrued bonuses to employees
Provision for sales returns
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 June 30, 2020

32,416
16,588
8,144
400
2,666
1,933
(216)
61,93333,603
15,400
8,545
382
3,206
1,968
(240)
62,867

7,058
5,865
9,570
22,494

6,609
6,028
9,673
22,311

867
2,996
3,863

743
2,483
3,227

2,201
(0)
2,200
28,55890,491

1,910
(0)
1,909
27,44890,315

4,900
2,009
1,272
928
41
8
6,478
15,638

5,122
2,070
1,554
891
53
4
5,482
15,179

417
98
3,873
4,389
20,028

429
151
3,521
4,102
19,281

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending December 2020

(Millions of yen)
At December 31, 2019

At June 30, 2020

NET ASSETS
I. Shareholders’ Equity:
Capital stock

5,199

5,199

Capital surplus

5,179

5,179

Retained earnings

58,97960,643

Treasury stock(1,088)(1,477)

Total Shareholders’ Equity

68,26969,54525

12Foreign currency translation adjustment(572)(1,222)

Total Accumulated Other Comprehensive Income(547)(1,209)III. Non-controlling Interests

2,741

2,698

Total Net Assets

70,463

71,033

Total Liabilities and Net Assets

90,49190,315

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

6Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending December 2020

(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)Six months ended
July 31, 201952,51925,881
26,63830
36
26,632
17,3759,257

Six months ended
June 30, 2020
48,431
24,00924,42140
52
24,40916,377
8,031

83
753
113
950

74
444
275
794

8
236
327
26
599
9,608

33
121
86
51
293
8,532

4
113
118

2
33
36

Net Income Attributable to Non-controlling Interests

8
42
－
50
9,675
3,069
(93)
2,976
6,699
134

15
37
175
228
8,340
2,606
(260)
2,346
5,994
138

Net Income Attributable to Owners of Parent

6,565

5,855

I. Net Sales
II. Cost of Sales
Gross profit
Reversal of provision for sales returns
Provision for sales returns
Adjusted gross profit
III. Selling, General and Administrative Expenses
Operating Income
IV. Non-operating Income:Interest income
Subsidy 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
Loss on disposal of fixed assets
Loss on sales of shares of subsidiaries and associates
Total Extraordinary Loss
Income before Income Taxes
Income taxes - current
Income taxes - deferred
Total Corporate Income Tax
Net Income

7Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending December 2020

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

8

Six months ended
July 31, 2019
6,699

Six months ended
June 30, 2020
5,994

(2)
(303)
(305)
6,393

(13)
(763)
(777)
5,217

6,210

5,191

183

25

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending December 2020

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)

I. Cash Flows from Operating Activities
Income before Income Taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in accrued bonuses to employees
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors andcorporate auditors' retirement benefits
Interest and dividend income
Interest expenses
Loss (gain) on sales of fixed assets
Loss on disposal of fixed assets
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
Decrease (increase) in claims provable inbankruptcy/rehabilitation
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 tangible fixed assets
Proceeds from sales of tangible fixed assets
Purchase of intangible fixed assets
Proceeds from sales of investment securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Payments into time deposits
Proceeds from sales of shares of subsidiaries andassociate
Other
Net Cash Provided by (Used in) Investing Activities

9

Six months ended
July 31, 2019

Six months ended
June 30, 2020

9,675
1,853
112
(0)
20
48

8,340
1,888
79
26
22
30

(599)

－

(98)
25
3
42
(113)

(177)
33
12
37
142

(3,842)

724

(566)
1,755
(224)
(382)

(777)
566
(120)
(118)

1

－

810
8,520
87
(8)
(3,268)
5,331

(192)
10,518190(1)(2,535)8,172(1,893)
35
(401)
209

(1,676)
24
(71)
130

(29)

－

－

(116)

－

8

(66)
(2,147)(16)(1,717)

Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending December 2020

(Millions of yen)

III. Cash Flows from Financing Activities
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
VIII. Cash and Cash Equivalents at End of Period10

Six months ended
July 31, 2019

Six months ended
June 30, 2020

(4,072)
(86)
(136)
－
(4,295)(4,207)
(68)
(388)
(202)
(4,867)

(93)

(513)

(1,204)30,94929,745

1,073
32,41633,489Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending December 2020

(4) Notes on Consolidated Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable.
(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable.
(Segment Information)
Six months ended July 31, 2019
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

24,09017,616

4,267

6,544

52,519－52,519Internal sales or
exchange between
segments

1,139

442

2,837

28

4,447

(4,447)－

Total

25,23018,058

7,104

6,572

56,967(4,447)52,519Segment profit

2,656

6,313

1,204

925

11,101(1,843)

9,257(Notes)1. The negative amount of ¥1,843 million from adjustments in segment profit includes ¥129 million in elimination ofintersegment transactions, and negative ¥1,973 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.

Six months ended June 30, 2020
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

21,041

17,290

3,789

6,309

48,431－

48,431

Internal sales or
exchange between
segments

1,543

165

2,653

2

4,364

(4,364)－

Total

22,584

17,456

6,443

6,312

52,795(4,364)

48,431

Segment profit

1,580

6,118

1,257

907

9,863

(1,832)

8,031(Notes)1. The negative amount of ¥1,832 million from adjustments in segment profit includes negative ¥153 million in eliminationof intersegment transactions, and negative ¥1,678 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.

2. Items Regarding Changes, etc., to Reporting Segments
Previously, this report consisted of information from six Group reporting segments: theDomestic Baby & Mother Care Business, Child Care Service Business, Health & Elder Care
Business, China Business, Singapore Business, and Lansinoh Business. However, as a resultof the reorganization of December 16, 2019, from the consolidated first quarter of the current

11Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter of Fiscal Year Ending December 2020

fiscal year, the Japan Business segment now aggregates the manufacturing and sales businessconducted outside the Group by domestic subsidiaries included in the segments of Domestic
Baby & Mother Care Business, Child Care Service Business, Health & Elder Care Business,
and Other. As a result, this report now consists of four segments.
Segment information for the previous consolidated six-month period was created using the
calculation method for segment profit after the changes were made.

12