Summary of Financial Results
for the Fiscal Year Ended December 31, 2022
[Japanese Standards] (Consolidated)
February 14, 2023

Name of Listed Company: Pigeon Corporation (Stock code: 7956)
Listings: 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 Date of Annual General Shareholders’ Meeting: March 30, 2023
Scheduled Commencement Date of Dividend Payments: March 31, 2023
Scheduled Filing Date of Annual Securities Report: March 31, 2023
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,
2022 (January 1 to December 31, 2022)(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, 2022

94,921

2.0

12,195(8.6)

13,465

(8.1)

8,581

(2.3)

FY ended December 31, 2021

93,080(6.3)

13,336(12.9)

14,648

(9.1)

8,785

(17.5)(Note) Comprehensive income:FY ended December 31, 2022
FY ended December 31, 2021

¥12,165 million (6.4% negative)¥12,994 million (16.8%)

Net Income
per Share (¥)

Diluted Net Income
per Share (¥)

Return on
Equity (%)

Total Assets/
Ordinary Income (%)

FY ended December 31, 2022

71.72

－

11.4

13.5

12.8

FY ended December 31, 2021

73.44

－

12.2

15.3

14.3

(Reference) Equity in earnings of affiliates:

FY ended December 31, 2022
FY ended December 31, 2021¥－ million¥－ million(2) Consolidated Financial Position
Total Assets

OperatingMargin (%)

Net Assets

Equity Ratio (%)

Net Assets
per Share (¥)

FY ended December 31, 2022

101,733

79,95275.4

640.96

FY ended December 31, 2021

98,042

76,81075.4

617.59FY ended December 31, 2022
FY ended December 31, 2021

¥76,695 million¥73,885 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, 2022

13,210(5,659)(9,666)34,283

FY ended December 31, 2021

10,893(5,593)(8,693)35,218

2. Cash Dividends

Annual Dividend (¥)
1Q-end2Q-endFY ended December 31, 2021

－

37.00

FY ended December 31, 2022－

FY ending December 31, 2023
(Forecast)

－

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

Dividends on
Consolidated
Net Assets(%)

3Q-end Year-end

Total

－

37.00

74.00

8,862

100.9

12.3

38.00

－

38.00

76.00

9,101

106.1

12.1

38.00

－

38.00

76.00

112.4

3. Consolidated Business Performance Forecasts for the Fiscal Year Ending
December 31, 2023 (January 1 to December 31, 2023)
Net Sales

Operating Income

Millions of Yen

Full year

100,000% Millions of Yen

5.3

12,400(% 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

1.7

12,400% 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) 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, 2022: 121,653,486 shares
FY ended December 31, 2021: 121,653,486 shares2) Amount of treasury stock at the period-end
FY ended December 31, 2022: 1,996,488 shares
FY ended December 31, 2021: 2,018,072 shares
3) Average number of shares outstanding during the period
FY ended December 31, 2022: 119,651,570 shares
FY ended December 31, 2021: 119,635,533 shares(Note) Amount of treasury stock at the period-end includes Company shares held by the board incentive plan (BIP) trust forcompensation of directors (102,956 shares as of FY ended December 31, 2022; 124,800 shares as of FY ended
December 31, 2021). 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 2022

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 ..................................................... 5(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 ....... 7
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) ............................................................................................. 18(Additional Information) ........................................................................................................... 18(Segment Information) .............................................................................................................. 19(Per Share Information) ............................................................................................................ 22(Material Subsequent Events) ................................................................................................... 221

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

1. Overview of Management Results and Related Matters(1) Overview of Management Results for the Term Under Review
1) Performance Overview
In the Japanese economy during the consolidated accounting year under review, despite rising prices
for crude oil and other raw materials and severe volatility in currency exchange rates, personal
consumption continued to recover gradually, as restrictions on activity were eased after a new waveof COVID-19 infections subsided. In the global economy, recovery proceeded gradually as theworldwide COVID-19 pandemic shifted into a new phase of living with COVID-19. However,
economies were hit by supply squeezes and rapid increases in the prices of goods. In China, a freshwave of COVID-19 infections spread amid relaxation of the zero-COVID policy, causing a standstillthat heightened the risk of economic downturn, blunting the pace of recovery.
Amid such circumstances, the Group has established three basic strategies (brand strategy, coreproduct strategy, and regional strategy) in its Seventh Medium-Term Business Plan (for the period
between the fiscal year ended December 2020 and the fiscal year ended December 2022) that wasformulated in February 2020. Now, in the final year of the Plan, guided by these basic strategies,
we have implemented various measures for business growth, as well as to realize our purpose which
is “We want to make the world more baby-friendly by furthering our commitment to understanding
and addressing babies' unique needs.”
Sales results varied by region during the fiscal year. In the China Business, the COVID-19 pandemic
continued its spread from the start of the fiscal year and the government imposed a zero-COVID
policy, including measures such as lockdowns in Shanghai and elsewhere in 2Q, in response. This
policy was later eased, sparking a fresh wave of infections. As a result, unforgiving conditions
persisted throughout the year in this business. In the Singapore Business and Lansinoh Business, on
the other hand, sales were brisk, and depreciation in the Japanese yen gave a boost to revenue figures.
Net sales edged up to ¥94,921 million (up 2.0% YOY). In earnings, globally high raw-material prices
and shipping expenses caused a deterioration in cost rates, while the reopening of economic activity
in various countries prompted concerted use of selling, general and administrative expenses.
Operating income fell to ¥12,195 million (down 8.6% YOY), ordinary income dropped to ¥13,465
million (down 8.1% YOY) and net income attributable to owners of parent retreated to ¥8,581 million(down 2.3% YOY).
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$: 131.55 yen (109.85 yen)
・1 CNY: 19.50 yen (17.03 yen)
Note: Figures in parentheses represent the exchange rate in 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 ¥36,323 million(down 5.1% YOY). Segment profit decreased compared to the previous fiscal year to ¥1,491 million(down 27.8% YOY), pulled down by factors such as a decrease in gross profit caused by the decline
in net sales and high procurement prices.
In the Baby Care Business (childcare and feminine products), net sales declined YOY. Contributing
factors included people staying indoors due to the COVID-19 pandemic and consumer demand2Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

turning to lower-priced goods due to advancing inflation. Sales of nursing bottles and breast pumps,
two of the Group’s mainstay product lines, persisted on a firm trend, particularly for updated
products released in February 2022, though some consumables such as baby wipes declined YOY
amid intensifying price-based competition. In the skincare category, though sales struggled asoverseas demand declined, the Group enhanced its product line with attractively packaged
moisturizing lotions adopting eco-friendly paper-cube packs, offered as a new product-value
proposition, as well as moisturizing lotion sold in refillable containers. In August 2022, Pigeon
launched sonaetta, its first disaster preparedness series for babies. By providing these products freeof charge to some local governments, Pigeon worked to entrench in the public mind awareness of
the importance of disaster preparedness for babies. In November 2022 the Group overhauled the
Official Pigeon Online Shop. This makeover boosted sales capabilities to new levels bystrengthening connections with social media for better convenience and augmenting the shop’s
lineup of limited-edition products.
The Group was also active in direct communications. We offered live presentations of theBreastfeeding Seminar, a maternity seminar that provides a fun way to learn about breastfeeding.
Over 2,400 expectant mothers and others attended these seminars. For medical professionals, theGroup presented an online seminar that attracted over 1,700 viewers. In addition, to alleviate theanxiety of mothers and fathers in the era of living with COVID-19, we are continuing to energize
mutual communication and support content provided via the internet and social media. By
introducing products through Pigeon Info, a website that supports women during pregnancy,
childbirth, and childcare, and through various video distribution sites, the Group is reinvigorating
its efforts to disseminate information that is attentive to customer needs.
In products for health and elder care, net sales decreased YOY as the Group rejigged this category’s
product lineup to improve gross profit margin from the previous fiscal year. However, an improving
effect on profit margin is gradually emerging. The Group is continuing its thorough implementationof measures such as bolstering sales activities with respect to retail outlets, elder-care facilities andother partners, and improving its product-development capabilities and the quality of elder-careservices.
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 BusinessNet sales in this segment amounted to ¥34,776 million (down 6.6% YOY), and segment profit also
decreased compared to the previous fiscal year to ¥10,408 million (down 11.7% YOY). As Mainland
China continued to face the spread of the COVID-19 pandemic from the beginning of this fiscal year,
lockdowns were imposed in April and May 2022, particularly in the Shanghai area, causing
unavoidable contractions and even stoppages of business activity. From July, however, following
cancellation of the lockdowns in June, Pigeon manufacturing and sales activities revived andlogistical disruptions gradually dissipated. In December the Chinese government eased the zeroCOVID policy, prompting a recurrence of the pandemic that once again made a severe impact on
customers’ consumption activity and the Group’s business activities.
In Mainland China, the Group’s biggest market, Pigeon essentially completed the switch to the
Shizen Jikkan nursing bottle series (marketed as Bonyu Jikkan® in Japan), to enthusiastic reviews.
The overhaul and start of advance sales of this series had been accomplished in September 2021. In
the baby skin-care product category, where the Group is focused on basic research, Pigeon
leveraged the results of research on babies’ skin to launch a line of skin-care products for children
ages three and up. This move, which occurred in 3Q, served to expand the Group’s range ofcategories in the China market.
Going forward, the Group plans to expand interactive communication activities with consumers
through its e-commerce platform, while continuing to strengthen activities at hospitals, maternity
3

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

clinics and the like. In these ways we are working to expand our operations still further, not only bymultiplying contact points with customers but also by building more robust relationships withemerging e-commerce platforms.
In Pigeon-brand baby product operations in North America, launched this fiscal year in thissegment, the Group has begun sales of the new line of nursing bottles mentioned above. Goingforward, the Group will strive to increase recognition and brand value in North America, bydisseminating information (mainly online) and through communication with experts.
Singapore BusinessIn this segment, net sales amounted to ¥14,153 million (up 12.2% YOY), and segment profit was¥2,140 million (up 18.2% YOY).
This segment is responsible for operations in the ASEAN region and India. As these regions
continued to recover from the COVID-19 pandemic, net sales and profits both rose in key countries
such as Indonesia, India, Singapore and Malaysia. In the nursing-bottle category, the Group began arevamp of its mainstay SofTouch nursing bottle series (marketed as Bonyu Jikkan® in Japan),starting with China and Japan and proceeding to other major countries in August, and sequentiallyrolled out nursing bottles made with T-Ester*, a new plastic as transparent as glass. In the baby
skin-care category, an area of focus for Pigeon, the Group deployed the Natural Botanical Baby
series in more than 15 countries and regions. In November 2022, as part of this series, the Group
expanded this series by launching a baby powder made from natural materials based on corn starch.
Moving forward, we will continue to advance the development and launch of products targeting theupper-middle class, while actively developing sales and marketing activities to achieve market
penetration of Group brands.
Lansinoh BusinessIn this segment, net sales amounted to ¥16,917 million (up 27.0% YOY), and segment profit was¥1,154 million (up 21.1% YOY).
North America and Europe, two vital markets for the segment, continued to suffer delays in productarrivals and shipments due to disruptions in logistics, in a trend that began in the previous year. In
North America, net sales rose YOY in local-currency terms, as sales were firm for nipple care creams,
breast pumps and breast milk storage bags, which are mainstay products, and sales swelled forprenatal and postnatal care products, which were launched in the previous year. Meanwhile, in partsof Europe such as Germany and the United Kingdom, an energy crisis and the high cost of living
dampened consumer activity, causing net sales in this region to fall YOY in local-currency terms.
Profits increased YOY. Logistical costs such as marine transportation expenses persisted at a highlevel, impacting unit costs, shipping expenses and other factors, while vigorous marketing activities
contributed to expenses. However, revenues rose in North America, contributing to the increase YoY.
Moving forward, to expand its business further, the Group is implementing initiatives such asenhancing its product lineup to cater to consumer behavior in each region, carrying out marketing
activities and strengthening its brand.
*T-Ester is a trademark or registered trademark of Mitsubishi Gas Chemical Company, Inc. in Japanand other countries.

4

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

(2) Overview of Financial Position for the Term Under Review(Assets)
As of December 31, 2022, total assets amounted to ¥101,733 million, up ¥3,691 million from theprevious consolidated fiscal year ended December 31, 2021.
Current assets had an increase of ¥888 million, and fixed assets had an increase of ¥2,802 million.
Current assets increased mainly due to increases in merchandise and finished goods of ¥1,806 million
and in raw materials and supplies of ¥796 million, despite a decrease in cash and deposits of ¥934
million.
Fixed assets increased mainly due to a ¥1,373 million increase in buildings and structures included
in tangible fixed assets and a ¥1,699 million increase in construction in progress, despite a ¥567
million decrease in machinery, equipment and vehicles included in tangible fixed assets.
(Liabilities)
As of December 31, 2022, total liabilities amounted to ¥21,781 million, up ¥548 million from theprevious consolidated fiscal year ended December 31, 2021. Current liabilities had an increase of¥491 million, and fixed liabilities had an increase of ¥57 million.
Current liabilities increased mainly due to an increase in notes and accounts payable - trade of ¥979
million, despite decreases in income taxes payable of ¥191 million and in other current liabilities of¥350 million.
Fixed liabilities increased mainly due to an increase in lease liabilities of ¥673 million, despite
decreases in other fixed liabilities of ¥409 million and in deferred tax liabilities of ¥205 million.
(Net Assets)
As of December 31, 2022, total net assets amounted to ¥79,952 million, up ¥3,142 million from theprevious consolidated fiscal year ended December 31, 2021.
This increase resulted mainly from an increase in foreign currency translation adjustment of ¥3,156
million, despite a decrease in retained earnings of ¥400 million.
(3) Overview of Cash Flows for the Term Under Review
As of December 31, 2022, cash and cash equivalents (hereinafter referred to as “net cash”)
amounted to ¥34,283 million, down ¥934 million compared with the end of the previous fiscal year.
Cash Flows from Operating Activities
Net cash provided by operating activities amounted to ¥13,210 million, up from ¥10,893 million of
the previous fiscal year. Factors increasing operating cash flows included ¥13,143 million in income
before income taxes, ¥4,758 million in depreciation, and a ¥1,631 million increase in notes andaccounts receivable - trade. Contrasting factors included a ¥1,816 million decrease in inventories and¥4,662 million in income taxes paid.
Cash Flows from Investing Activities
Net cash used in investing activities totaled ¥5,659 million, up from ¥5,593 million of the previous
fiscal year. This is mainly due to ¥5,315 million in purchase of tangible fixed assets and ¥249 million
in purchase of intangible fixed assets.
Cash Flows from Financing Activities
Net cash used in financing activities was ¥9,666 million, up from ¥8,693 million of the previous fiscal
year. This is mainly due to ¥8,974 million in payment of cash dividends.

5Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

Cash flow indicators of the Group are shown below.

FY ended December 31,
2020

FY ended December 31,
2021

FY ended December 31,
2022

Equity Ratio (%)

74.8

75.4

75.4

Equity Ratio based on Market Price (%)

544.6

268.2

255.0

Debt Repayment Term (years)

0.1

0.2

0.2

Interest Coverage Ratio (times)

564.8

137.1

137.6

- 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.

(4) Future Directions
The Group has prepared its Eighth Medium-Term Business Plan, whose first year is the fiscal year
ending December 2023 (covering the period from the fiscal year ending December 2023 to thefiscal year ending December 2025). The theme of this Medium-Term Business Plan is “For
Sustainable Growth: Restructuring of business in response to global economic, political, andenvironmental changes.” In this Medium-Term Business Plan, the Group will diligently implement
the three basic strategies outlined below, with a view to responding flexibly to a businessenvironment that is rapidly changing worldwide and ensuring sustainable growth going forward.
While pursuing sustainable growth in existing business fields, the Group will also focus on
discovering and nurturing new growth domains in which it can leverage its expertise, thereby
proactively reconfiguring its business structure.
1. Brand Strategy
Our brand strategy is centered on its Purpose for our business activities and strengthening brandpower through products.
2. Product Strategy
The Group will strengthen Monozukuri, focus on core categories (nursing bottles and skincare), andexplore new areas.
3. Regional Strategy
Strengthening autonomous business operation by each SBU, the Group will implement far-reaching
structural reform to establish production and sales systems tailored to market characteristics,
improve efficiency and profitability, stabilize the supply chain and prepare for expansion into newmarkets.
In existing businesses, the Group will leverage its preeminence and competitive strength in its coreproducts of nursing bottles, nipples and products in the baby skin care category. To strengthen theseadvantages further, the Group will offer lifestyle product and service proposals, examine newmaterials and respond to environmental and local needs, thereby enhancing its product and service
lineup for social changes in the post-COVID-19 world. At the same time, the Group will aim forsustainable growth by radically revising its sales strategies for various products in each businessand making structural changes such as supply-chain improvements.
The Group is looking actively at other fields that the Group has not yet entered but where it can
expect to apply its superior capabilities. These include an “age-up” strategy of developingchildren’s products aimed at a broader range of target customers; creating and nurturing new
6

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

categories of women’s care products, where the Group enjoys strong customer affinity; andextending into new markets, such as Africa. In this way the Group will explore and cultivate new
domains to produce growth for the next generation.
In addition, the Group will further strengthen its Group-wide head-office functions at Global Head
Office (GHO), 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. These efforts are
expected to propel each segment onto a stable, long-term growth arc and reinforce corporate
governance and other aspects of the management base.
Based on this state of affairs, for the fiscal year ending December 31, 2023, the Group forecasts net
sales of ¥100,000 million (up 5.3% YOY), operating income of ¥12,400 million (up 1.7% YOY),
ordinary income of ¥12,400 million (down 7.9% YOY) and net income attributable to owners ofparent of ¥8,100 million (down 5.6% YOY).
(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 basic policy is to return income actively to shareholders through appropriation of retained
earnings and other means, while reinforcing our financial position based on considerations of
medium-term changes in business conditions and the Group’s business strategies. Internal reserves
are put to effective use to ensure the future profitability of the Group. Applications for internal
reserves include not only strengthening the Group’s financial position but also investing in R&D andnew business fields for further growth and investing in production facilities to strengthen thecorporate brand, raise production capacity, reduce costs, enhance product quality and grow throughstrategies such as mergers and acquisitions.
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 ended December 2022)
announced in February 2020, we aim to increase dividends every fiscal year compared to previous
fiscal year. We are also targeting a consolidated total shareholder return of about 55%. To this end,
we have sought 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 ¥38 per share (ordinary dividend of ¥38). For the year-end
dividend, the Group forecasts a dividend of ¥38 per share (ordinary dividend of ¥38). As a result, theannual dividend for the term under review will total ¥76 per share (ordinary dividend of ¥76), a pershare increase by ¥2 from the previous fiscal year.
As in the fiscal year under review, the annual dividend for the next fiscal year is expected to total¥76 per share. This dividend is based on the targets of shareholder return set out under the Eighth
Medium-Term Business Plan announced today: further improvement of consolidated businessresults and financial position, along with continuous, stable dividend supporting existing dividendlevels.
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 2022

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, 2021

At December 31, 2022

35,21816,253
8,723
623
3,359
809
1,461
(194)
66,25434,283
15,975
10,529
632
4,156
353
1,439
(226)
67,143

20,38923,620(11,263)(13,121)

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

10,49922,432(17,215)
5,217
10,108(6,228)(7,212)

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

2,896
7,559
3,961
30,132

534
1,765
272
2,572

380
1,682
245
2,308

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

547
900
166
534
(0)
2,149
34,590101,733

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

(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 loss on litigation
Other current liabilities
Total Current Liabilities
II. Fixed Liabilities:
Lease 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, 2021

At December 31, 2022

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

5,066
1,542
2,373
2,006
989
920

18

－

9
3,006
15,0727
2,656
15,563

1,384
3,209
478
313
773
6,159
21,232

2,057
3,004
566
225
364
6,217
21,781

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

5,199
5,132
60,762(1,387)
69,706

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

26
6,962
6,989
3,257
79,952
101,733

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

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

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
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 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, 2021
93,08049,00844,07230,735
13,336(Millions of yen)
Year Ended
December 31, 2022
94,92150,087
44,834
32,63812,195

179
126
722
131
268
1,427

182
17
826
112
279
1,418

79
35
115
14,64894
54
149
13,465

10
54
65

7
－
7

5
59
229
885
3
1,182
13,531
4,690
(138)
4,552
8,979
193
8,785

1
45
282
－
－
329
13,143
4,678
(296)
4,381
8,761
179
8,581

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

(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, 2021
8,979

(Millions of yen)
Year Ended
December 31, 2022
8,761

3
4,012
4,015
12,994

9
3,394
3,404
12,165

12,719274

11,743422

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

(3) Statement of Changes in Consolidated Shareholders’ Equity
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

76,81012Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

Fiscal Year Ended December 31, 2022

(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
Disposal 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
Disposal of treasury stock
Changes in items other thanshareholders’ equity (net)Total changes during theperiodBalance at the end of current
periodCapitalsurplus

5,199

5,179

Retainedearnings
61,163

Treasury
stock

Total
shareholders’equity(1,479)70,062(8,982)(8,982)

8,581

8,581
(0)

(0)

(46)

(0)

91

44

－

(46)

(401)

91

(356)

5,199

5,132

60,762(1,387)

69,706

Accumulated other comprehensive income
Total
NonForeign
Valuation
accumulated
controllingcurrency
difference on
otherinterests
translation
available-forcomprehensive
adjustment
sale securities
income
16

3,805

3,822

2,925

Total net
assets76,810(8,982)
8,581
(0)
44

9

3,156

3,166

331

3,498

9

3,156

3,166

331

3,142

26

6,962

6,989

3,257

79,95213

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

(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
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
Proceeds from withdrawal of time deposits
Other
Net Cash Provided by (Used in) Investing Activities

14

Year Ended
December 31, 2021

(Millions of yen)
Year Ended
December 31, 2022

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

13,143
4,758
282
189
7
(1)
59

108

(88)

(305)
79
(11)
(5)
59

(199)
94
85
(5)
45

469

1,631

(466)
(1,511)
(50)
(789)
(425)
1,220
16,216305(63)(5,565)
10,893(1,816)
222
－
(11)
(187)
(395)
17,813152(93)(4,662)
13,210(5,659)
29
(234)
(1)
213
(0)
(13)
19
112
(59)
(5,593)(5,315)
14
(249)
(1)
－
(1)
(38)
21
－
(88)
(5,659)Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

III. Cash Flows from Financing Activities:
Payment of cash dividends
Dividends paid to non-controlling interests
Purchase of treasury stock
Proceeds from disposal 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, 2021

(Millions of yen)
Year Ended
December 31, 2022

(8,741)
(74)
(0)
－
122
(8,693)(8,974)
(93)
(0)
44
(642)
(9,666)

1,560

1,180

(1,832)37,05035,218(934)
35,21834,283

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

(5) Notes on Consolidated Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable.
(Change in Accounting Policy)(Application of Accounting Standards, etc., Related to Fair Value Measurement)
The Group applies the Accounting Standard for Fair Value Measurement (ASBJ Statement
No. 30, July 4, 2019; hereinafter, “the Accounting Standard for Fair Value Measurement”)
from the beginning of the consolidated fiscal year under review. In accordance with thetransitional handling stipulated in the Accounting Standard for Fair Value Measurement,
Paragraph 19, as well as the Accounting Standards for Financial Instruments (ASBJ
Statement No. 10, July 4, 2019), Paragraph 44-2, the Group applies the new accounting policy
stipulated in the Accounting Standard for Fair Value Measurement, etc. going forward. Thischange does not affect the consolidated financial statements.
(Application of the FASB’s ASC 842, “Leases”)
Beginning in the current consolidated fiscal year, US-based subsidiaries that apply US
accounting standards apply the US Financial Accounting Standards Board (FASB)’s
Accounting Standards Codification (ASC) number 842, “Leases.” According to ASC 842, inprinciple borrowers recognize all leases as assets and liabilities. The impact of the applicationof this standard on the financial position and business results of the Group is negligible.

16Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

(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¥32,441 million
Impairment loss
¥282 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)¥900 million
The amount prior to offsetting deferred tax liabilities is ¥1,311 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 2022

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.
(Change in Presentation Method)
In regards to the item “Lease liabilities” (¥1,384 million in the previous consolidated fiscal year)
which was presented in “Other fixed liabilities” in the previous consolidated fiscal year, theimportance of the amount increased and the item is stated independently 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 ¥433 million and 102,956 shares at the end of the
fiscal year under review.

18

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

(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”.

19Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

3. Information Regarding Net Sales, Profit (Loss), Assets and Other Items in Each Reporting Segment
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.

20

3,997
164
6,735

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

1. Fiscal Year Ended December 31, 2022

(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

34,232

34,227

9,562

16,89894,921－

94,921

Internal sales or exchange
between segments

2,090

548

4,590

18

7,428

(7,428)－

Total

36,323

34,77614,153

16,917102,170(7,428)94,921

Segment Profit

1,491

10,408

2,140

1,154

15,194(2,998)12,195

Segment Assets

25,16019,097

10,351

11,636

66,24535,488

101,733

Net Sales

Other Items
Depreciation
1,068
1,722
1,035
342
4,167
590
(Note 6)
Amortization of Goodwill
182
6
189
－
－
－
Increase in Tangible Fixed
Assets and Intangible Fixed
3,387
1,681
828
1,280
7,177
81
Assets(Note 7)(Notes)1. The negative amount of ¥2,998 million from adjustments in segment profit includes ¥53 million in elimination of intersegment transactions
and negative ¥3,052 million in non-allocable operating expenses. Non-allocable operating expenses are mainly administrative costs of ourGroup.
2. The amount of ¥35,488 million in adjustments in segment assets includes negative ¥1,739 million in eliminations of inter-segment transactions,and ¥37,228 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

4,758
189
7,259

Pigeon Corporation (7956) Summary of Financial Results for the Fiscal Year Ended December 2022

(Per Share Information)
Previous fiscal year

Net Assets per ShareNet Income per Share

(January 1 to December 31, 2021)¥617.59¥73.44Current fiscal year

(January 1 to December 31, 2022)¥640.96¥71.72(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; 102,956 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 (124,800 shares for the previous fiscal year; 108,469 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)(January 1 to December 31, 2021)(Material Subsequent Events)
Not applicable.

22

Current fiscal year

(January 1 to December 31, 2022)

8,785

8,581

－

－

8,785

8,581

119,635,533

119,651,570