Summary of Financial Results
for the Fiscal Year Ended December 31, 2021
[Japanese Standards] (Consolidated)
February 15, 2022

Name of Listed Company: Pigeon Corporation (Stock code: 7956)
Listings: 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 Date of Annual General Shareholders’ Meeting: March 30, 2022
Scheduled Commencement Date of Dividend Payments: March 31, 2022
Scheduled Filing Date of Annual Securities Report: March 31, 2022
Preparation of Any Additional Explanatory Materials for Financial Results: Yes
Holding of Any Briefing Session for Financial Results: Yes (For analysts and institutional investors)

1. Consolidated Business Performance for the Fiscal Year Ended December 31,
2021 (January 1 to December 31, 2021)(1) Consolidated Operating Results (cumulative)(Millions of yen, rounded down, % figures denote year-on-year change)
Net Income
Operating Income
Ordinary Income
Attributable to
Owners of Parent

Net Sales
Millions of Yen%

Millions of Yen%

Millions of Yen%

Millions of Yen%

FY ended December 31, 2021

93,080(6.3)

13,336(12.9)

14,648

(9.1)

8,785

(17.5)FY ended December 31, 2020

99,380－15,316－

16,113－

10,643－(Note) Comprehensive income:FY ended December 31, 2021
FY ended December 31, 2020

¥12,994 million (16.8%)¥11,129 million (－%)

Net Income
per Share (¥)

Diluted Net Income
per Share (¥)

Return on
Equity (%)

Total Assets/
Ordinary Income (%)

FY ended December 31, 2021

73.44

－

12.2

15.3

14.3

FY ended December 31, 2020

88.93

－

15.5

17.5

15.4

(Reference) Equity in earnings of affiliates:

FY ended December 31, 2021
FY ended December 31, 2020¥－ million¥－ million(2) Consolidated Financial Position
Total Assets

OperatingMargin (%)

Net Assets

Equity Ratio (%)

Net Assets
per Share (¥)

FY ended December 31, 2021

98,042

76,81075.4

642.04

FY ended December 31, 2020

93,472

72,62574.8

607.06

FY ended December 31, 2021
FY ended December 31, 2020

¥73,885 million¥69,903 million(Reference) Shareholders’ Equity:(3) Cash Flows

Cash and Cash
Equivalents
at Year-End

Cash Flows fromOperating Activities

Cash Flows from
Investing Activities

Cash Flows from
Financing Activities

FY ended December 31, 2021

10,893(5,593)(8,693)35,218FY ended December 31, 2020

18,400(3,815)(9,231)37,0502. Cash Dividends

Annual Dividend (¥)
1Q-end2Q-endFY ended December 31, 2020

－

36.00

FY ended December 31, 2021－

FY ending December 31, 2022
(Forecast)

－

Total
Dividends
Paid (fullyear) (¥ mil)Consolidated
Payout Ratio(%)

Dividends on
Consolidated
Net Assets(%)

3Q-end Year-end

Total

－

36.00

72.00

8,622

81.0

12.5

37.00

－

37.00

74.00

8,862

100.9

12.3

38.00

－

38.00

76.00

95.8

3. Consolidated Business Performance Forecasts for the Fiscal Year Ending
December 31, 2022 (January 1 to December 31, 2022)
Net Sales

Operating Income

Millions of Yen

Full year

98,700% Millions of Yen

6.0

14,200(% figures denote year-on-year change from the previous term)
Net Income
Net Income per
Ordinary Income
Attributable to
Share
Owners of Parent% Millions of Yen

6.5

14,300% Millions of Yen

(2.4)

9,500

%

8.1

Yen

79.41

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) 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
(3) Number of outstanding shares (common stock)1) Number of shares outstanding at the period-end (including treasury stock)
FY ended December 31, 2021: 121,653,486 shares
FY ended December 31, 2020: 121,653,486 shares2) Amount of treasury stock at the period-end
FY ended December 31, 2021: 2,018,072 shares
FY ended December 31, 2020: 2,017,880 shares
3) Average number of shares outstanding during the period
FY ended December 31, 2021: 119,635,533 shares
FY ended December 31, 2020: 119,675,451 shares(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 FY ended December 31, 2021; 124,800 shares as of FY ended
December 31, 2020). 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.

* This summary of financial results is exempt from audit by certified public accountants and auditing 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 andfuture 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 “(4) Future Directions” in “1. Overview of Management Results and Related Matters” on page 6 regarding
conditions which are preconditions for business performance forecasts and cautions for using the business performance
forecast.

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

Table of Contents of the Appendix
1. Overview of Management Results and Related Matters .................................................................. 2(1) Overview of Management Results for the Term Under Review ................................................. 2(2) Overview of Financial Position for the Term Under Review ..................................................... 4(3) Overview of Cash Flows for the Term Under Review ................................................................ 5(4) Future Directions ......................................................................................................................... 6(5) Income Appropriation Policy and Dividends for the Term Under Review and Next Term ....... 6
2. Basic Approach for the Selection of Accounting Standards ............................................................ 7
3. Consolidated Financial Statements and Main Notes........................................................................ 8(1) Consolidated Balance Sheets....................................................................................................... 8(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ............ 10
Consolidated Statement of Income ............................................................................................ 10
Consolidated Statement of Comprehensive Income .................................................................. 11(3) Statement of Changes in Consolidated Shareholders’ Equity ................................................... 12(4) Consolidated Statements of Cash Flows ................................................................................... 14(5) Notes on Consolidated Financial Statements ............................................................................ 16(Notes Regarding Going Concern Assumptions)...................................................................... 16(Change in Accounting Policy) ................................................................................................. 16(Important Accounting Estimates) ............................................................................................ 17(Change in Presentation Method) ............................................................................................. 19(Additional Information) ........................................................................................................... 19(Segment Information) .............................................................................................................. 20(Per Share Information) ............................................................................................................ 23(Material Subsequent Events) ................................................................................................... 231

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

1. Overview of Management Results and Related Matters(1) Overview of Management Results for the Term Under Review
1) Performance Overview
During the consolidated accounting year under review, Japan’s economy showed some movement
toward a recovery amidst the gradual relaxation of tough conditions due to the impact of COVID-19.
In the global economy including Japan, although there is gradual normalization of socioeconomic
activities, there are still intermittent resurgences of the COVID-19 virus and lockdowns (cityclosures), and it is still impossible to predict when COVID-19 will end. Consequently, we predictthat uncertainty regarding the future of the economy will continue for the time being.
Amid such circumstances, the Group has established three basic strategies (brand strategy, coreproduct strategy, and regional strategy) in our Seventh Medium-Term Business Plan (for the period
between the fiscal year ended December 2020 and the fiscal year ending December 2022) that wasformulated in February 2020. In the second year of the Plan, we implemented various measures forbusiness growth, as well as to realize our purpose which is “we want to make the world more babyfriendly by furthering our commitment to understanding and addressing babies' unique needs.”
During the consolidated period under review, due to the application of the Accounting Standard for
Revenue Recognition, etc., and due to the continued direct and indirect impact of the spread of
COVID-19 on markets, net sales amounted to ¥93,080 million (down 6.3% YOY). Regarding
earnings, in addition to a decrease in sales, the Group actively used sales promotion expenses,
advertising expenses, etc., in conjunction with the launch of new products, and incurred higher
research and development expenses aimed at enhancing product appeal in the future. As a result,operating income was ¥13,336 million (down 12.9% YOY), ordinary income was at ¥14,648 million(down 9.1% YOY), and net income attributable to owners of parent was ¥8,785 million (down 17.5%
YOY).
Furthermore, as a change in accounting policies, the Group has applied the Accounting Standard for
Revenue Recognition (ASBJ Statement No. 29; March 31, 2020) from the beginning of theconsolidated fiscal year under review. For this reason, the year-on-year comparison uses numbers
based on different calculation methods. For details, please refer to “(5) Notes on Consolidated
Financial Statements (Change in Accounting Policy)” in “3. Consolidated Financial Statements andMain Notes.”
The main exchange rates used in the preparation of this consolidated period’s financial statements for
the Company’s overseas consolidated subsidiaries (revenues and expenses) are as follows:
・1 US$: 109.85 yen (106.77 yen)
・1 CNY: 17.03 yen (15.47 yen)
Note: Figures in parentheses represent the exchange rate in the previous fiscal year.
2) Segment Review
From the fiscal year ended December 31, 2020, 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.
Due to the application of the Accounting Standard for Revenue Recognition from the beginning of
the consolidated fiscal year under review, the year-on-year comparison for the Japan Business andChina Business segments uses numbers based on different calculation methods. For details, pleaserefer to “(5) Notes on Consolidated Financial Statements (Segment Information)” in “3.
Consolidated Financial Statements and Main Notes.”
Japan BusinessThis segment consists of businesses such as the Baby Care Business, Child Care Service Business,and Health & Elder Care Business. Due to factors such as application of the Accounting Standard for
Revenue Recognition, net sales for the entire segment amounted to ¥38,264 million (down 14.9%
2

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

YOY). Segment profit was ¥2,065 million (down 31.3% YOY) due to factors such as a decrease ingross profit caused by the decline in net sales.
In the category of childcare and feminine products, net sales were down year-on-year. This was due
to factors such as the complete lack of inbound demand from foreign visitors to Japan, special
demand for cleaning/sterilization-related products, wet wipes, etc., due to COVID-19 having run its
course, and the subsequent waves of COVID-19 throughout Japan. On the other hand, sales
continued to be strong for breast pumps, which is an area of focus by the Group. In July, we
released the bouncer “Wuggy,” which brings even greater happiness to family time spent at homeand cultivates a circle of family happiness. Then, in September, we released “BASIS Polka Dot
Denim” as the fifth edition of the extremely popular stroller series BASIS, which can only bepurchased at select stores. Wuggy and BASIS Polka Dot Denim have been extremely well received.
Next, in December, in order to support the newly started childcare life, we started provision of thechildcare and housework sharing support app “My Home Torisetsu,” which uses videos, images,
and texts to share with partners the different childcare and housework methods of each household.
In this way, we worked to expand both products and services.
As part of our initiatives for direct communication, during the consolidated fiscal year underreview, the Group held joint seminars with our business partners and performed SNS live streaming
to convey the features of our products in an easy-to-understand manner. The streamed content wasviewed by a total of more than 5,000 people. We also streamed the breastfeeding seminar “Oppai
College” for pregnant mothers and received online participation from more than 1,300 women.
In order to alleviate the anxiety of mothers and fathers in the era of living with COVID-19, we arecontinuing to enhance support content through our website and SNS. We will also continue to makefurther improvements according to the needs of our customers in the contents of “Pigeon Info,”
which is a website that supports women during pregnancy, childbirth, and childcare.
In the category of products for health and elder care, net sales decreased year-on-year due to factors
such as the special demand for hygiene management products from last year having run its course,
and a revision of our product lineup. We renewed the Group’s oral care series as the “Clean Smile
Series” and released products in February 2021. In August, we released the new food-thickening
agent “Liquid Thickener— Simply Add,” which allows users to enjoy the original flavor andappearance of their meal. In this way, we are actively launching new products. Moving forward, we
will implement thorough measures such as further strengthening sales activities at retail stores andnursing care facilities, and improving the quality of nursing care services.
Regarding child care service, during the consolidated fiscal year under review, we currently provide
services at 64 in-company child-care facilities, and shall continue to develop this business further
while striving to improve the quality of service content.
China Business
Due to factors such the application of the Accounting Standard for Revenue Recognition, etc., net
sales in this segment amounted to ¥37,239 million (down 1.3% YOY), while segment profit decreasedto ¥11,792 million (down 6.4% YOY).
Net sales decreased year-on-year on a local currency basis due to factors such as a lull in last year’shigh demand in mainland China and the remaining impact of COVID-19 at brick-and-mortar stores.
In September, we renewed the nursing bottle series “Shizen Jikkan” (product name in Japan:“Bonyu Jikkan®”) which was born from more than 60 years of baby nursing research and possesses
the largest market share in Japan and China (according to survey by Pigeon). We started pre-sale ofthe new series starting from the Chinese market. Sales of skin care products increased steadily due
to factors such as the launch of a series focusing on hot spring ingredients and the renewal ofexisting products.
Profits in the China Business decreased year-on-year due to changes in our product sales
composition ratio, efforts for strengthening our brand, and aggressive activities and cost investment
including strengthened sales in the rapidly growing area of e-commerce and increased sales at3

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

brick-and-mortar stores.
The Group is continuing to leverage SNS and live streaming to invigorate direct communication
with consumers and support the provision of child care information during COVID-19, to reinforce
sales promotions at stores and promote distribution of new products, and to strengthen activities at
hospitals and maternity clinics. In these ways, we are working to broaden contact points withcustomers and expand our operations.
Singapore BusinessIn this segment, net sales amounted to ¥12,619 million (up 3.6% YOY), and segment profit was¥1,811 million (up 10.0% YOY).
The ASEAN region and India in which this segment does business continues to be significantly
compacted by the spread of COVID-19; for example, business activities are restricted due to a stateof emergency being declared in various regions and cities being locked down. Furthermore, there
are sluggish sales of products exported to the Middle East and Southeast Asia. Such factors havecreated tough conditions in the segment. In terms of products, in the skin care category that is anarea of focus by the Group, we released the new skin care series “Natural Botanical” in August.
This environmentally-friendly series has 90% or more of its ingredients derived from plants andrecycled materials are used for a portion of the containers. Moving forward, we will continue topromote the development and launch of products for the upper-middle class, and actively develop
sales and marketing activities with the aim of achieving market penetration for the Group brands.
Lansinoh BusinessIn this segment, net sales amounted to ¥13,320 million (up 6.8% YOY), and segment profit was¥953 million (down 30.4% YOY).
In North America and Europe, as COVID-19 spread, sales in the e-commerce channel were strong
and net sales increased year-on-year. Particularly, in North America, although product arrivals andshipments continued to be delayed due to disruptions in logistics, sales were strong for nipple carecreams and the new product category of products for care before and after childbirth.
Profits were down year-on-year due to the continued increases of distribution costs such as marinetransportation as well as to active utilization of selling, general and administrative expenses such as
research and development expenses aimed at the launch of new products. Moving forward, in orderto further expand business in Europe, China, and other regions in addition to North America, theGroup is implementing initiatives such as enhancing our product lineup, strengthening e-commerce,
implementing marketing activities, and engaging in brand strengthening activities.
(2) Overview of Financial Position for the Term Under Review(Assets)
As of December 31, 2021, total assets amounted to ¥98,042 million, up ¥4,570 million from theprevious consolidated fiscal year ended December 31, 2020.
Current assets had an increase of ¥1,023 million, and fixed assets had an increase of ¥3,547 million.
Current assets increased mainly due to increases in notes and accounts receivable - trade of ¥1,167
million, in merchandise and finished goods of ¥466 million, and in raw materials and supplies of¥590 million, despite a decrease in cash and deposits of ¥1,944 million.
Fixed assets increased mainly due to a ¥1,913 million increase in buildings and structures included
in tangible fixed assets, a ¥565 million increase in tools, furniture and fixtures, a ¥1,262 million
increase in land, despite a ¥282 million decrease in software included in intangible fixed assets.
(Liabilities)
As of December 31, 2021, total liabilities amounted to ¥21,232 million, up ¥385 million from theprevious consolidated fiscal year ended December 31, 2020. Current liabilities had a decrease of ¥592
4

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

million, while fixed liabilities had an increase of ¥978 million.
Current liabilities decreased mainly due to decreases in notes and accounts payable - trade of ¥670
million, in accounts payable of ¥474 million, and in income taxes payable of ¥725 million, despite
increases in accrued expenses of ¥360 million and in other current liabilities of ¥1,067 million.
Fixed liabilities increased mainly due to increases in deferred tax liabilities of ¥178 million and inother fixed liabilities of ¥654 million.
(Net Assets)
As of December 31, 2021, total net assets amounted to ¥76,810 million, up ¥4,184 million from theprevious consolidated fiscal year ended December 31, 2020.
This increase resulted mainly from increases in retained earnings of ¥43 million and in foreign
currency translation adjustment of ¥3,935 million.
(3) Overview of Cash Flows for the Term Under Review
As of December 31, 2021, cash and cash equivalents (hereinafter referred to as “net cash”)
amounted to ¥35,218 million, down ¥1,832 million compared with the end of the previous fiscal
year.
Cash Flows from Operating Activities
Net cash provided by operating activities amounted to ¥10,893 million, down from ¥18,400 millionof the previous year. Factors increasing operating cash flows included ¥13,531 million in income
before income taxes, ¥3,997 million in depreciation, and a ¥469 million decrease in notes andaccounts receivable - trade. Contrasting factors included a ¥1,511 million decrease in notes andaccounts payable - trade, a ¥466 million increase in inventories, and ¥5,565 million in income taxes
paid.
Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥5,593 million, up from ¥3,815 million of the previous
year. This is mainly due to ¥5,659 million in purchase of tangible fixed assets and ¥234 million inpurchase of intangible fixed assets.
Cash Flows from Financing Activities
Net cash used in financing activities was ¥8,693 million, down from ¥9,231 million of the previous
year. This is mainly due to ¥8,741 million in payment of cash dividends.
Cash flow indicators of the Group are shown below.

FY ended December 31,
2019

FY ended December 31,
2020

FY ended December 31,
2021

Equity Ratio (%)

74.8

74.8

75.4

Equity Ratio based on Market Price (%)

539.8

544.6

268.2

Debt Repayment Term (years)

0.1

0.1

0.2

Interest Coverage Ratio (times)

272.8

564.8

137.1

- Equity ratio: Total shareholders’ equity ÷ Total assets- Equity ratio based on market price: Market value of total stock ÷ Total assets- Debt repayment term: Interest-bearing debt ÷ Operating cash flows- Interest coverage ratio: Operating cash flows ÷ Interest paid
Notes:
1. Each index is calculated based on consolidated financial figures.
2. Market value of total stock is calculated by multiplying the stock price (closing price at the end of the term) by the number of shares outstandingat the end of the term (after deduction of treasury stock).
3. Operating cash flow figures are taken from the Cash Flows from Operating Activities section of the Consolidated Statements of Cash Flows.
4. Interest-bearing debt refers to all debt that incurs interest (listed in Consolidated Balance Sheets).
5. For interest paid, interest expenses (listed in Consolidated Statements of Cash Flows) are used.

5

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

(4) Future Directions
The Group is implementing the measures grounded on the three themes and business strategies statedin the Seventh Medium-Term Business Plan (for the period between the fiscal year ended December
2020 and the fiscal year ending December 2022).
In the Japan Business, we aim to improve our market share in existing categories and to develop new
product categories. In the overseas market, which the Group has particularly singled out for continued
growth, the Group will further promote a three-division organizational framework, consisting of the
China Business, Singapore Business and Lansinoh Business. To secure still further improvements inbusiness results, we are working hard to promote fast decision-making in the operations of eachbusiness, expand and deepen our presence in existing overseas markets, advance dynamically into
new markets, and expand product lineups in accordance with each market.
In addition, the Group will further strengthen its Group-wide head-office functions at Global Head
Office (GHO) to enhance enterprise value. As part of this, it will clarify the roles and responsibilities
of its four segments (Japan Business, China Business, Singapore Business and Lansinoh Business),which are responsible for business management and growth in each region, and improve
communication with GHO, propelling the Group onto a stable, long-term growth arc.
In regards to the Seventh Medium-Term Business Plan (for the period between the fiscal year ended
December 2020 and the fiscal year ending December 2022) which we announced on February 13,
2020, we revised quantitative targets on February 10, 2021 based on performance for the fiscal year
ended December 31, 2020 and changes in the COVID-19 pandemic.
In regards to the Group’s business performance forecasts for the fiscal year ending December 31,
2022 that we announced on February 15, 2022, based on performance in the fiscal year underreview, net sales are ¥98,700 million, operating income is ¥14,200 million, ordinary income is¥14,300 million, and net income attributable to owners of parent is ¥9,500 million.
(5) Income Appropriation Policy and Dividends for the Term Under Review and Next Term
The Pigeon Group regards the return of income to shareholders as an important management priority.
Our policy is to actively return income to shareholders through appropriation of retained earnings andother means, while reinforcing our financial position based on considerations of medium-termchanges in business conditions and the Group’s business strategies. In addition to strengthening ourfinancial position, we effectively use retained earnings in a number of ways to fortify our operationalbase and improve future Group earnings. These include investing in new businesses for further
growth and research and development, as well as investing in production facilities to strengthen our
corporate brand, raise production capacity, reduce costs, and enhance product quality.
With respect to targets of shareholder return, under the Seventh Medium-Term Business Plan (for theperiod between the fiscal year ended December 2020 and the fiscal year ending December 2022)
announced in February 2020, we aim to increase dividends every fiscal year compared to previous
year. We are also targeting a consolidated total shareholder return of 55%. To this end, we havesought to further strengthen and upgrade measures for returning profits to all shareholders.
The distribution of dividends in the period under review reflects the above policies and targets. The
Group distributed an interim dividend of ¥37 per share (ordinary dividend of ¥37). For the year-end
dividend, the Group forecasts a dividend of ¥37 per share (ordinary dividend of ¥37). As a result, theannual dividend for the term under review will total ¥74 per share (ordinary dividend of ¥74), a pershare increase by ¥2 from the previous year.
The annual dividend for the next term will total ¥76 per share, a per share increase of ¥2 from theterm under review based on the targets of shareholder return (increase dividends every fiscal year
compared to previous year and a consolidated total shareholder return of 55%) set out under theSeventh Medium-Term Business Plan.

6

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

2. Basic Approach for the Selection of Accounting Standards
For the time being, our Group will continue to prepare its consolidated financial statements based onJapanese standards out of consideration of comparability from period to period and between
companies on consolidated financial statements.
In terms of the application of International Financial Reporting Standards (IFRS), we will takeappropriate measures by considering various circumstances in Japan and overseas.

7

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

3. Consolidated Financial Statements and Main Notes(1) Consolidated Balance Sheets

ASSETS
I. Current Assets:
Cash and deposits
Notes and accounts receivable - trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Receivables
Other current assets
Allowance for doubtful accounts
Total Current Assets
II. Fixed Assets:
1. Tangible Fixed Assets:
Buildings and structures
Accumulated depreciation and accumulated
impairment loss
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation and accumulated
impairment loss
Tools, furniture and fixtures, net
LandConstruction in progress
Total Tangible Fixed Assets
2. Intangible Fixed Assets:
Goodwill
Software
Other intangible fixed assets
Total Intangible Fixed Assets
3. Investments and Other Assets:
Investment securities
Deferred tax assets
Insurance reserve
Other
Allowance for doubtful accounts
Total Investments and Other Assets
Total Fixed Assets
Total Assets

8(Millions of yen)

At December 31, 2020

At December 31, 2021

37,16315,085
8,256
350
2,768
746
1,037
(178)
65,23135,21816,253
8,723
623
3,359
809
1,461
(194)
66,254

17,482

20,389(10,270)(11,263)

7,212
19,313(13,390)
5,923
7,576

9,125
21,085(15,301)
5,784
8,877

(5,493)(6,228)

2,083
6,009
2,034
23,262

2,649
7,272
2,261
27,093

647
2,047
263
2,957

534
1,765
272
2,572

687
684
165
483
(0)
2,020
28,241
93,472

532
922
165
502
(0)
2,122
31,78898,042

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

(Millions of yen)

LIABILITIES
I. Current Liabilities:
Notes and accounts payable - trade
Electronically recorded obligations - operating
Accounts payable
Accrued expenses
Income taxes payable
Accrued bonuses to employees
Provision for expenses related to voluntary productrecallProvision for sales returns
Provision for loss on litigation
Other current liabilities
Total Current Liabilities
II. Fixed Liabilities:
Deferred tax liabilities
Net defined benefit liability
Provision for share-based remuneration
Other fixed liabilities
Total Fixed Liabilities
Total Liabilities
NET ASSETS
I. Shareholders’ Equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total Shareholders’ Equity
II. Accumulated Other Comprehensive Income:
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total Accumulated Other Comprehensive Income
III. Non-controlling Interests
Total Net Assets
Total Liabilities and Net Assets

9

At December 31, 2020

At December 31, 2021

4,757
1,670
2,727
1,648
1,906
952

4,087
1,623
2,253
2,009
1,180
882

－

18

53
7
1,939
15,664－9
3,006
15,072

3,031
440
205
1,503
5,181
20,846

3,209
478
313
2,157
6,159
21,232

5,199
5,179
61,120(1,478)70,0205,199
5,179
61,163(1,479)70,062

13
(129)
(116)
2,722
72,62593,472

16
3,805
3,822
2,925
76,81098,042

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)

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
Dividend income
Subsidy income
Foreign exchange gains
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
Impairment loss
Expenses related to voluntary product recall
Loss on sales of shares of subsidiaries and associates
Loss on sales of golf club memberships
Loss on sales of investment securities
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

10

Year Ended
December 31, 2020
99,38049,45049,92938
47
49,921
34,605
15,316(Millions of yen)
Year Ended
December 31, 2021
93,08049,00844,072－－44,07230,735
13,336

156
104
727
－
418
1,406

179
126
722
131
268
1,427

32
236
271
69
608
16,113

79
－
－
35
115
14,648

4
33
38

10
54
65

36
63
16
26
167
4
－
315
15,836
4,715
261
4,976
10,860216
10,643

5
59
229
885
－
－
3
1,182
15,531
4,690
(138)
4,552
8,979
193
8,785

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

(Consolidated Statement of Comprehensive Income)Net Income
Other Comprehensive Income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total Other Comprehensive Income
Comprehensive Income(Breakdown)Comprehensive income on parent company
Comprehensive income on non-controlling interests

11

Year Ended
December 31, 2020
10,860(Millions of yen)
Year Ended
December 31, 2021
8,979

(12)
282
269
11,129

3
4,012
4,015
12,994

11,072
56

12,719274

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

(3) Statement of Changes in Consolidated Shareholders’ Equity
Fiscal Year Ended December 31, 2020

(Millions of yen)

Shareholders’ equity
Capital stock
Balance at the beginning of
the period
Changes during the period
Dividends from surplus
Net income attributable toowners of parent
Acquisition of treasury
stock
Changes in items other thanshareholders’ equity (net)Total changes during theperiodBalance at the end of current
periodBalance at the beginning of
the period
Changes during the period
Dividends from surplus
Net income attributable toowners of parent
Acquisition of treasury
stock
Changes in items other thanshareholders’ equity (net)Total changes during theperiodBalance at the end of current
periodCapitalsurplus5,199

Retainedearnings

5,179

58,979Treasury
stock

Total
shareholders’equity(1,088)68,269(8,503)(8,503)

10,643

10,643
(389)

(389)

－

－

2,140

(389)

1,750

5,199

5,179

61,120(1,478)70,020

Accumulated other comprehensive income
Total
NonForeign
Valuation
accumulated
controllingcurrency
difference on
otherinterests
translation
available-forcomprehensive
adjustment
sale securities
income
25

(572)

(547)

2,741

Total net
assets70,463(8,503)
10,643
(389)

(12)

442

430

(18)

411

(12)

442

430

(18)

2,162

13

(129)

(116)

2,722

72,62512

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

Fiscal Year Ended December 31, 2021

(Millions of yen)

Shareholders’ equity
Capital stock
Balance at the beginning of
the period
Changes during the period
Dividends from surplus
Net income attributable toowners of parent
Acquisition of treasury
stock
Changes in items other thanshareholders’ equity (net)Total changes during theperiodBalance at the end of current
periodBalance at the beginning of
the period
Changes during the period
Dividends from surplus
Net income attributable toowners of parent
Acquisition of treasury
stock
Changes in items other thanshareholders’ equity (net)Total changes during theperiodBalance at the end of current
periodCapitalsurplus5,199

Retainedearnings

5,179

61,120Treasury
stock

Total
shareholders’equity(1,478)70,020(8,742)(8,742)

8,785

8,785
(0)

(0)

－

－

43

(0)

42

5,199

5,179

61,163(1,479)70,062

Accumulated other comprehensive income
Total
NonForeign
Valuation
accumulated
controllingcurrency
difference on
otherinterests
translation
available-forcomprehensive
adjustment
sale securities
income
13

(129)

(116)

2,722

Total net
assets72,625(8,742)
8,785
(0)

3

3,935

3,939

203

4,142

3

3,935

3,939

203

4,184

16

3,805

3,822

2,925

76,81013

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

(4) Consolidated Statements of Cash Flows

I. Cash Flows from Operating Activities:
Income before income taxes
Depreciation
Impairment loss
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 share-based
remuneration
Interest and dividend income
Interest expenses
Foreign exchange loss (gain)
Loss (gain) on sales of fixed assets
Loss on disposal of fixed assets
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Loss (gain) on sales of investment securities
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
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of insurance funds
Payments for lease deposits
Collection of lease deposits
Payments into time deposits
Proceeds from withdrawal of time deposits
Proceeds from sales of shares of subsidiaries and associate
Other
Net Cash Provided by (Used in) Investing Activities

14

Year Ended
December 31, 2020

(Millions of yen)
Year Ended
December 31, 2021

15,836
3,815
16
157
(29)
53
47

13,531
3,997
229
164
(3)
(106)
32

107

108

(260)
32
20
31
63

(305)
79
(11)
(5)
59

1,351

469

(42)
(260)
134
88
233

(466)
(1,511)
(50)
(789)
(425)

0

－

1,058
22,456279(12)(4,322)
18,4001,220
16,216305(63)(5,565)
10,893(3,601)
24
(222)
(2)
130
(0)
(22)
17
(115)
－
8
(31)
(3,815)(5,659)
29
(234)
(1)
213
(0)
(13)
19
－
112
－
(59)
(5,593)

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

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
VII. Cash and Cash Equivalents at End of Period

15

Year Ended
December 31, 2020

(Millions of yen)
Year Ended
December 31, 2021

(8,517)
(76)
(389)
(247)
(9,231)(8,741)
(74)
(0)
122
(8,693)

(718)

1,560

4,634
32,41637,050(1,832)37,05035,218

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

(5) Notes on Consolidated Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable.
(Change in Accounting Policy)(Application of the Accounting Standard for Revenue Recognition, etc.)
The Group has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29;
March 31, 2020; hereinafter, “Accounting Standard for Revenue Recognition”) from the beginningof the consolidated fiscal year under review. In accordance with the Accounting Standard for
Revenue Recognition, when control of a promised good or service is transferred to the customer,
revenue will be recognized at the amount expected to be received in exchange for the good orservice.
As a result, a portion of the sales promotion expenses, etc., which were previously recorded inselling, general and administrative expenses, and sales discounts, which were recorded in nonoperating expenses, have been deducted from net sales. Furthermore, regarding the provision forsales returns that was previously recorded as current liabilities based on the amount equivalent togross profit, we changed to a method that does not recognize the net sales and the amountequivalent to cost of sales for products that are expected to be returned. Refund liabilities areincluded in “Other current liabilities” and refund assets are included in “Other current assets.”
When applying the Accounting Standard for Revenue Recognition, etc., we comply with thetransitional treatment stipulated in the provisions of Paragraph 84 of the Standard. The cumulative
impact of retroactively applying the new accounting policy prior to the beginning of consolidated
fiscal year under review is added or subtracted to the retained earnings at the beginning of theconsolidated fiscal year under review and the new accounting policy is applied from the beginningbalance. However, there is no effect on the beginning balance.
As a result, for the consolidated fiscal year under review, net sales decreased by ¥5,219 million,
cost of sales increased by ¥1 million, selling, general and administrative expenses decreased by¥4,981 million, non-operating income decreased by ¥0 million, and non-operating expenses
decreased by ¥239 million. Consequently, gross profit decreased by ¥5,220 million, and operating
income decreased by ¥239 million. However, there was no effect on ordinary income or income
before income taxes.
In accordance with the transitional treatment stipulated in Paragraph 89-3 of the AccountingStandard for Revenue Recognition, we do not list information related to revenue recognition for theprevious consolidated fiscal year.

16

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

(Important Accounting Estimates)
Accounting estimates are reasonable amounts calculated based on the information available at thetime of preparation of the consolidated financial statements. From among amounts recorded in the
consolidated financial statements for the consolidated fiscal year under review based on accounting
estimates, the following items have a risk of having a significant impact on the consolidated
financial statements for the next consolidated fiscal year.
1. Impairment of fixed assets(1) Amount recorded in the consolidated financial statements for the fiscal year under review
Tangible and intangible fixed assets¥29,665 million
Impairment loss
¥229 million(2) Information on the content of important accounting estimates for identified items
1) Calculation method
From among tangible and intangible fixed assets, for assets or asset groups that show signs of
impairment, if the value in use or net sale price obtained from the asset or group of assets is below
its carrying amount, the carrying amount is reduced to the recoverable amount, and the reduced
amount is recorded as an impairment loss.
2) Major assumptions
Future cash flows used in determining whether to recognize an impairment loss and to calculate thevalue in use are calculated based on the business plan approved by management and the subsequentsales-growth rate, etc. The Group also performs calculation by obtaining evaluations from realestate appraisers, etc. for assets that are expected to be sold.
3) Impact on the consolidated financial statements in the next fiscal year
In recognizing the impairment loss, the Group carefully considers future profitability, etc. However,
if we are unable to achieve the important business plan based on the estimated amount of future
cash flow or if future uncertainty increases due to future changes, etc., in the management andmarket environment, there is the possibility that the recoverable amount may decrease and there
will be a significant impact on the consolidated financial statements due to the occurrence of an
impairment loss in the next fiscal year.
The threat of COVID-19 is highly uncertain due to the progress of vaccination in Japan andoverseas, and concerns about the spread of variants. If the pandemic is prolonged in the future,
global economic activity will be stagnant, which would cause changes in the assumed conditions orassumptions, such as a decrease in net sales. Such events may affect the financial condition,
operating results, and cash flow conditions in the next consolidated fiscal year.
2. Possibility of collecting deferred tax assets(1) Amount recorded in the consolidated financial statements for the consolidated fiscal year underreview
Deferred tax assets (net amount)¥922 million yen
The amount prior to offsetting deferred tax liabilities is ¥1,297 million.
(2) Information regarding the content of material accounting estimates for identified items
1) Calculation method
The Group records deferred tax assets for deductible temporary differences that are determined tobe recoverable by estimating taxable income based on the budget for the next consolidated fiscal
year and forecasts of future performance, and by considering the feasibility.
2) Major assumptions
Based on reasonable assumptions made from the current situation and available information, theGroup estimates future performance forecasts which are important in calculating the timing andamount of taxable income.
3) Impact on the consolidated financial statements in the next fiscal year
If there are changes to the preconditions or assumptions made in estimating taxable income and the17Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

estimated amount decreases, deferred tax assets may be reduced and the Group may record tax
expenses.
The threat of COVID-19 is highly uncertain due to the progress of vaccination in Japan andoverseas, and concerns about the spread of variants. If the pandemic is prolonged in the future,
global economic activity will be stagnant, which would cause changes in the assumed conditions orassumptions, such as a decrease in net sales. Such events may affect the financial condition,
operating results, and cash flow conditions in the next consolidated fiscal year.
Changes in the effective tax rate due to tax reform may have a significant impact on the amountrecognized in the consolidated financial statements for the next consolidated fiscal year andsubsequent years.

18

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

(Change in Presentation Method)(Application of the Accounting Standard for Disclosure of Accounting Estimates)
The Group applies the Accounting Standard for Disclosure of Accounting Estimates (ASBJ
Statement No. 31; March 31, 2020) from the consolidated financial statements for the end of thecurrent consolidated fiscal year, and lists notes related to important accounting estimates in the
consolidated financial statements.
However, in accordance with the transitional treatment stipulated in the provisions of Paragraph 11of the Accounting Standard for Disclosure of Accounting Estimates, we do not list content related
to the previous consolidated fiscal year in the notes.
(Consolidated Balance Sheets)
In regards to the item “Accrued expenses” (¥1,648 million in the previous consolidated fiscal year)
which was presented in “Other current liabilities” in the previous consolidated fiscal year, theimportance of the amount increased and the item is now listed separately from the consolidated
fiscal year under review.
(Additional Information)(BIP Trust System for Compensation of Directors)
Pigeon has introduced a performance share plan for directors (not including outside directors). The
purpose of this system is to clarify the relationship between directors’ compensation and theGroup’s business results and shareholder value and to enhance awareness of contributions to theimprovement of the business results of the Group and the expansion of its enterprise value over the
medium-to-long term.
(1) Overview of the BIP trust system for compensation of directors
This plan adopts a framework called the board incentive plan (BIP) trust for compensation of
directors. Similar to systems in North America and Europe such as performance shares, which
tie compensation to business results, and restricted stock, which compensates directors withshares whose transfer is restricted, the system provides directors with Company shares, ortheir equivalent value at conversion, tied to the director’s rank and the Company’s degree ofattainment of business-result targets. In principle the compensation is transferred or paid to
directors upon retirement.
(2) Company shares remaining in the trust
Company shares remaining in the trust are appropriated as treasury stock in net assets, basedon the book value of the trust (not including the amounts of incidental expenses). The bookvalue of the treasury stock was ¥525 million and number of shares was 124,800 at the end of
the previous consolidated fiscal year, and ¥525 million and 124,800 shares at the end of the
fiscal year under review.

19

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

(Segment Information)
1. Summary of Reporting Segments
In respect of the Company’s reporting segments, these are, of the constituent units in the Group,
those for which separate financial information are available and those that are the subject of regularexamination by the board of directors to make decisions on management resource allocation andassessment of performance.
The Group has a total of four reporting segments: “Japan Business,” “China Business,” “Singapore
Business,” and “Lansinoh Business.”
The types of the Group’s reporting segments are as follows.
(i) Japan BusinessThis segment is engaged in the manufacture and sales of childcare products and feminine products,
provision of childcare services, manufacture and sales of health care products and nursing careproducts, and provision of nursing care services in Japan.
(ii) China BusinessThis segment is engaged in the manufacture and sales of child care products and feminine products
in China, Hong Kong, Russia, South Korea, Taiwan, and some other countries.
(iii) Singapore BusinessThis segment is engaged in the manufacture and sales of childcare products and feminine productsin the ASEAN member countries of Indonesia, Malaysia, Singapore and Thailand, as well as othercountries such as Australia, India and the countries of the Middle East.
(iv) Lansinoh BusinessThis segment is engaged in the manufacture and sales of childcare products and feminine products
in China, Germany, Turkey, the United Kingdom, the United States and other countries.
2. Calculation Method for the Values in Segmental Sales, Profits or Losses, Assets and Other Items
The methodology adopted in calculating the segmental sales, profits or losses, assets and other items
is generally the same as in “Basis for Preparing Consolidated Financial Statements”.

20Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

3. Information Regarding Net Sales, Profit (Loss), Assets and Other Items in Each Reporting Segment
1. Fiscal Year Ended December 31, 2020

(Millions of yen)

Reporting Segment
Singapore
Business

Total

LansinohBusinessAmountAccounted on
Consolidated
Financial
Statements(Note 5)Adjustments(Note 1)
(Note 2)
(Note 3)(Note 4)

Japan Business

China BusinessNet sales to externalcustomers

42,17537,472

7,262

12,46999,380－99,380Internal sales or exchange
between segments

2,801

259

4,921

4

7,986

(7,986)－

Total

44,97737,732

12,184

12,473

107,367(7,986)

99,380

Segment Profit

3,008

12,600

1,647

1,370

18,627(3,310)15,316

Segment Assets

22,78115,808

9,147

6,164

53,901

39,57093,472Net Sales

Other Items
Depreciation
992
1,140
940
174
3,247
567
(Note 6)
Amortization of Goodwill
151
6
157
－
－
－
Increase in Tangible Fixed
Assets and Intangible Fixed
671
1,436
1,735
158
4,002
182
Assets(Note 7)(Notes)1. The negative amount of ¥3,310 million from adjustments in segment profit includes ¥31 million in elimination of intersegment transactions
and negative ¥3,342 million in non-allocable operating expenses. Non-allocable operating expenses are mainly administrative costs of ourGroup.
2. The amount of ¥39,570 million in adjustments in segment assets includes negative ¥1,682 million in eliminations of inter-segment transactions,and ¥41,253 million in the entire company assets consisting principally of investments of surplus of the parent company (Cash and Deposits),
long term investment assets (Investment Securities and the Like) and assets relating to the administrative area.
3. Depreciation adjustments are depreciations relating the entire company assets.
4. Adjustments of increase in tangible fixed assets and intangible fixed assets relate to the entire company assets.
5. Segment profit has been adjusted with the operating income in the consolidated financial statements.
6. Amortization relating to long term pre-paid expenses are included in the depreciation.
7. Increases in tangible fixed assets and intangible fixed assets include increases in long term pre-paid expenses.

21

3,815
157
4,185

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

1. Fiscal Year Ended December 31, 2021

(Millions of yen)

Reporting Segment
Singapore
Business

Total

LansinohBusinessAmountAccounted on
Consolidated
Financial
Statements(Note 5)Adjustments(Note 1)
(Note 2)
(Note 3)(Note 4)

Japan Business

China BusinessNet sales to externalcustomers

35,31336,9597,507

13,30093,080－93,080Internal sales or exchange
between segments

2,950

280

5,112

20

8,363

(8,363)－

Total

38,26437,23912,61913,320101,444(8,363)93,080

Segment Profit

2,065

11,792

1,811

953

16,623(3,286)

13,336

Segment Assets

22,952

20,785

9,747

7,700

61,18636,856

98,042Net Sales

Other Items
Depreciation
1,023
1,222
965
204
3,416
581
(Note 6)
Amortization of Goodwill
157
6
164
－
－
－
Increase in Tangible Fixed
Assets and Intangible Fixed
2,457
2,506
1,128
527
6,619
115
Assets(Note 7)(Notes)1. The negative amount of ¥3,286 million from adjustments in segment profit includes negative ¥72 million in elimination of intersegment
transactions and negative ¥3,213 million in non-allocable operating expenses. Non-allocable operating expenses are mainly administrative
costs of our Group.
2. The amount of ¥36,856 million in adjustments in segment assets includes negative ¥1,959 million in eliminations of inter-segment transactions,and ¥38,815 million in the entire company assets consisting principally of investments of surplus of the parent company (Cash and Deposits),
long term investment assets (Investment Securities and the Like) and assets relating to the administrative area.
3. Depreciation adjustments are depreciations relating the entire company assets.
4. Adjustments of increase in tangible fixed assets and intangible fixed assets relate to the entire company assets.
5. Segment profit has been adjusted with the operating income in the consolidated financial statements.
6. Amortization relating to long term pre-paid expenses are included in the depreciation.
7. Increases in tangible fixed assets and intangible fixed assets include increases in long term pre-paid expenses.

2. Items Regarding Changes, etc., to Reporting Segments(Application of the Accounting Standard for Revenue Recognition, etc.)
As described above in “(Change in Accounting Policy) - (Application of the AccountingStandard for Revenue Recognition, etc.),” the Group has applied the Accounting Standard for
Revenue Recognition, etc. from the beginning of the consolidated fiscal year under review. Dueto a change in the method of accounting treatment for revenue recognition, similar changes havebeen made to the methods of measuring profit and loss in each business segment.
As a result, when compared to the previous method of accounting treatment, in the consolidated
fiscal year under review, segment net sales decreased by ¥3,145 million in the Japan Businesssegment and decreased by ¥2,073 million in the China Business segment. Also, segment profit
decreased by ¥239 million in the Japan Business segment.

22

3,997
164
6,735

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2021

(Per Share Information)
Previous fiscal year

Net Assets per ShareNet Income per Share(February 1 to December 31, 2020)¥607.6¥88.93Current fiscal year

(January 1 to December 31, 2021)¥642.4¥73.44(Notes) 1. With respect to diluted net income per share, there are no latent shares, thus, has not been disclosed.
2. Company shares held by the BIP trust for compensation of directors are included in the treasury stock subtracted from thetotal number of shares outstanding at the period-end when calculating the net assets per share (124,800 shares for theprevious fiscal year; 124,800 shares for the current fiscal year).
Furthermore, company shares held by the BIP trust for compensation of directors are included the treasury stock
subtracted in the calculation of the average number of shares outstanding during the period when calculating the net
income per share (85,180 shares for the previous fiscal year; 124,800 shares for the current fiscal year).
3. The basis for the calculation of the net income per share is as follows.

Previous fiscal year

Net Income Attributable to Owners of
Parent (¥ millions)
Amount Not Attributable to Ordinary
Shareholders (¥ millions)
Net Income Attributable to Owners of
Parent Relating to Ordinary Shares(¥ millions)Average Number of Ordinary Shares
During the Term (shares)(February 1 to December 31, 2020)(Material Subsequent Events)
Not applicable.

23

Current fiscal year

(January 1 to December 31, 2021)

10,643

8,785

－

－

10,643

8,785

119,675,451

119,635,533