Summary of Consolidated Financial Statements for the Year Ended
December 31, 2023 [IFRS]
February 14, 2024
Company name: Lion Corporation
Listed stock exchanges: Tokyo Stock Exchange
Code: 4912

URL: http://www.lion.co.jp/en/
Representative: Masayuki Takemori, Representative Director, President and Executive Officer
Contact: Akihiko Takeo, Executive Officer, Director of Finance Department
Telephone: +81-3-6739-3711
Annual meeting of shareholders: March 28, 2024
Start date of payment of dividend: March 7, 2024
Scheduled date of filing of quarterly financial report: March 29, 2024
Supplementary materials prepared for quarterly results: Yes
Quarterly results information meeting held: Yes (for institutional investors, analysts, etc.)
Figures in this and subsequent tables are truncated at the nearest million.

1. Consolidated Results for the Year Ended December 31, 2023
(January 1, 2023 – December 31, 2023)(1) Consolidated Results (cumulative)(Percentage figures denote year-on-year change)
Net sales
Millions of yen

Operating profit%

Millions of yen%

Profit before tax
Millions of yen%

Year ended December
31, 2023

402,767

3.3

20,505(28.9)

22,375(28.5)

Year ended December
31, 2022

389,869

6.5

28,843(7.5)

31,292(8.2)

Profit for the period
Millions of yen

Year ended December
31, 2023
Year ended December
31, 2022%

Profit for the period
attributable toowners of the parent
Millions of yen%

Total comprehensive
income for the period
Millions of yen%

16,687(27.8)

14,624(33.3)

26,575(17.0)

23,110(9.1)

21,939(7.7)

32,025

12.5

Note: Core operating income for the year ended December 31, 2023 was ¥20,133 million (down 14.5% year on year).
Core operating income for the year ended December 31, 2022 was ¥23,559 million (down 23.8% year on year).
Core operating income is an earnings indicator the Company uses to measure regular business performance by
subtracting selling, general and administrative expenses from gross profit.

Basic earnings Diluted earnings
per shareper share
Yen

Year ended
December 31,
2023
Year ended
December 31,
2022

Ratio of equity
attributable toowners of theparent to profit
for the period

Yen

Ratio of profit
Ratio of operating
before tax to total
profit to net sales
assets

%

%

%

51.42

51.35

5.4

4.7

5.1

77.04

76.91

8.5

7.0

7.4

Note: Share of profit (loss) of investments accounted for using the equity method:

December 31, 2023: ¥1,607 million
December 31, 2022: ¥1,824 million(2) Consolidated Financial Position

December31, 2023
December31, 2022

Total assets

Total equity

Equityattributable toowners of theparentMillions of yen

Millions of yen

Millions of yen

Ratio of equity
attributable toowners of theparent to total
assetsEquity attributableto owners of theparent per share%Yen

486,363

298,134

280,31657.6

985.43

469,278

279,168

264,25556.3

929.72(3) Consolidated Cash Flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at
end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Year ended
December31, 2023

30,068(34,790)(11,762)

85,526

Year ended
December31, 2022

41,962(19,535)(19,821)

101,078

2. Dividends
Cash dividends per share

Fiscal2022
Fiscal2023
Fiscal2024(forecast)

Total

Total dividend paid(annual)Payout ratio(consolidated)

Ratio of dividends toequity attributable toowners of the parent(consolidated)

Yen

Yen

Millions of yen

%

%

First
Quarter

SecondQuarter

Third
QuarterYear-End

Yen

Yen

Yen

—

12.00

—

13.00

25.00

7,123

32.4

2.8

—

13.00

—

13.00

26.00

7,411

50.6

2.7

—

13.00

—

14.00

27.00

40.4

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending December 31, 2024
(January 1, 2024 – December 31, 2024)(Percentage figures denote year-on-year change)
Net sales
Millions of yen

First half 2024
Fiscal 2024

Profit for the period
attributable to owners of
the parent

Operating profit%

195,000
410,000

Millions of yen

1.1
1.8

Note: Core operating income forecast:%

12,00027,000Millions of yen

92.2
31.7

%

8,000
19,000

Basic earnings per
share
Yen

28.13
66.81

86.1
29.9

First half 2024: ¥8,000 million
Fiscal 2024:¥23,000 million

Notes
(1)

Significant Change in Scope of Consolidation during Period: No(2)

Changes in accounting principles, procedures and presentation methods in connection with the preparation ofquarterly consolidated financial statements:
a. Changes in accounting standards required under IFRS: No
b. Other changes: No
c. Changes in accounting estimates: No(3) Number of outstanding shares (common stock)a. Number of outstanding shares on balance sheet dates (including treasury stocks):
As of December 31, 2023:
292,536,446 shares
As of December 31, 2022:
292,536,446 sharesb. Number of treasury stocks on balance sheet date:
As of December 31, 2023:
8,075,507 shares
As of December 31, 2022:
8,304,250 sharesc. Average number of shares outstanding over period
Fiscal year ended December 31, 2023: 284,406,596 sharesFiscal year ended December 31, 2022: 284,763,600 shares

Reference: Summary Non-Consolidated Results (JGAAP basis)
1. Non-Consolidated Results for the Year Ended December 31, 2023
(January 1, 2023 – December 31, 2023)(1) Non-Consolidated Results(Percentage figures denote year-on-year change)

Net sales
Millions of yen

Fiscal 2023
Fiscal 2022

Fiscal 2023
Fiscal 2022

230,801
231,299

Operating profit%

Millions of yen

(0.2)
0.3

Basic earnings per share
Yen
26.47
48.72

2,267
8,966

%

(74.7)(43.0)

Ordinary income
Millions of yen

8,081
17,296

Diluted earnings per share
Yen
26.43
48.63

%

(53.3)(39.3)

Profit for the period
Millions of yen

7,528
13,874%(45.7)(48.5)

(2) Non-consolidated Financial Position

December31, 2023
December31, 2022

Total assets

Net assets

Shareholders’ equity
to total assets

Net assets per share

Millions of yen

Millions of yen%

Yen

319,129

206,09164.6

724.32

332,443

204,41561.5

718.75

Reference: Shareholders’ equity:

December 31, 2023: ¥206,041 million
December 31, 2022: ¥204,292 million* This report is not subject to review by a certified public accountant or external auditor.
* Appropriate use of results forecasts; other special items
The forecasts and projected operating results contained in this report are based on information
available at the time of preparation and thus involve inherent risks and uncertainties, including thoserelated to economic conditions, the competitive environment and exchange rate fluctuations.
Accordingly, readers are cautioned that actual results may differ materially from those projected as aresult of a variety of factors. For information on forecasts of operating results, see I. Consolidated
Performance and Financial Status on pages 2–12.

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

Contents
I. Consolidated Performance and Financial Status----------------------------------------------------------------- 2
1. Consolidated Performance ----------------------------------------------------------------------------------------- 2
2. Financial Status-------------------------------------------------------------------------------------------------------- 10
3. Basic Policy on the Distribution of Earnings and Cash Dividends ---------------------------------------- 12
II. Corporate Group --------------------------------------------------------------------------------------------------------- 13
III. Management Policies -------------------------------------------------------------------------------------------------- 14
1. Basic Management Policies ---------------------------------------------------------------------------------------- 14
2. Long-term Management Strategies ------------------------------------------------------------------------------ 14
3. Management Issues -------------------------------------------------------------------------------------------------- 15
IV. Basic Approach Regarding the Selection of Accounting Standards --------------------------------------- 17
V. Consolidated Financial Statements and Notes ------------------------------------------------------------------ 18(1) Consolidated Statement of Financial Position ---------------------------------------------------------------- 18(2) Consolidated Statement of Income and Statement of Comprehensive Income --------------------- 20(3) Consolidated Statement of Changes in Equity --------------------------------------------------------------- 22(4) Consolidated Statement of Cash Flows ------------------------------------------------------------------------ 26(5) Notes to Consolidated Financial Statements
Notes Relating to the Assumption of a Going Concern ----------------------------------------------------- 27
Segment Information------------------------------------------------------------------------------------------------- 27
Income Taxes ---------------------------------------------------------------------------------------------------------- 31
Post-Retirement Benefits ------------------------------------------------------------------------------------------- 33
Earnings per Share--------------------------------------------------------------------------------------------------- 36
Important Subsequent Events ------------------------------------------------------------------------------------- 36

1

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

I. Consolidated Performance and Financial Status
1. Consolidated Performance(1) Performance Overview of the Consolidated Fiscal Year under Review(January 1, 2023 – December 31, 2023)
The Lion Group continues advancing initiatives based on three growth strategies under Vision2030 1st
STAGE, its current medium-term management plan. These three strategies are “Accelerate growth in four
fields of value creation,” “Transform our business foundations for growth” and “Generate dynamism torealize innovative change.”
During the fiscal year under review, the global outlook remained uncertain due to geopolitical issues andfinancial tightening. The Lion Group’s business environment during the period generally trended towards
moderate recovery, especially in Japan, despite higher raw material prices under the influence of theongoing depreciation of the yen. Against this backdrop, we introduced new high-value-added products into
our fabric softener and laundry detergent lineups and worked to develop our mainstay brands.
Overseas, the economies of Thailand and China, our main markets, trended towards recovery although
there was some stagnation in China in the second half of the fiscal year due to such factors as a decline
in real estate investment. Amid these circumstances, Lion sought to expand its business in the personalcare field, which includes oral care and beauty care products, while striving to enhance its competitivenessin the home care field, which encompasses such products as laundry detergents. At the same time, theGroup invested in a healthcare company in Vietnam, aiming to create new foundations for growth.
Reflecting these efforts, consolidated results for fiscal 2023 are as follows. Net sales amounted to¥402,767 million, a year-on-year increase of 3.3% (or a 1.3% increase at constant currency excluding
exchange rate fluctuations). Core operating income came to ¥20,133 million, down 14.5% compared withthe previous fiscal year, and operating profit to ¥20,505 million, down 28.9% year on year, reflecting suchfactors as increase in competition-related expenses and the recording of one-off expenses related to thehead office relocation. As a result, profit for the period attributable to owners of the parent totaled ¥14,624
million, down 33.3% compared with the previous fiscal year.

2Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

Consolidated Results(Millions of yen)
Ratio tonet sales

Fiscal 2023

Ratio tonet sales

Fiscal 2022

Net sales

402,767

389,869

Core operating income

20,133

5.0%

23,559Operating profit

20,505

5.1%

14,624

3.6%

Change(%)

Change12,8973.3%

6.0%(3,425)(14.5%)

28,843

7.4%(8,338)(28.9%)

21,9395.6%(7,314)(33.3%)

Profit for the period
attributable to owners of
the parent
Notes: 1. Core operating income is an earnings indicator the Company uses to measure regular business performanceby subtracting selling, general and administrative expenses from gross profit.
2. Operating profit in fiscal 2022 includes gain on transfer of land held by a consolidated subsidiary (transferred
January 31, 2022).

Results by Business Segment(Millions of yen)
Net salesYear ended
December31, 2023

Year
ended
December31, 2022

Consumer Products

267,380

Industrial Products

Segment profit (core operating income)ChangeChange(%)

Year ended
December31, 2023

Year
ended
December31, 2022

265,555

1,824

0.7%

4,799

11,454(6,655)(58.1%)

57,191

58,076(885)(1.5%)

3,013

3,132

(118)

(3.8%)

Overseas

148,067

129,342

18,724

14.5%

8,587

5,116

3,471

67.8%

Other

20,90915,394

5,515

35.8%

1,375

1,202

173

14.4%

Subtotal

493,548468,368

25,1805.4%

17,77520,904(3,129)(15.0%)

Adjustment(90,781)(78,499)(12,282)

―

2,358

2,654

(295)

―

Total

402,767

389,869

12,897

3.3%

20,13323,559(3,425)(14.5%)

Change(%)

ChangeResults by business segment are as follows.
Consumer Products Business
The Consumer Products Business segment comprises the Oral Care Products, Beauty Care Products,
Fabric Care Products, Living Care Products, Pharmaceutical Products and Other Products businesses.
Segment net sales increased 0.7% compared with the previous fiscal year. Segment profit decreased
58.1% due to increase in raw material prices.
(Millions of yen)
Year ended
December 31,
2023
Net sales
Segment profit

Year ended
December 31,
2022

Ratio tonet sales

267,380
4,799

Ratio tonet sales

265,555
1.8%

11,454

4.3%

ChangeChange
(%)

1,824

0.7%

(6,655)(58.1%)

Note: Net sales include internal sales within and among segments, which amounted to ¥38,700 million in fiscal 2023
and ¥35,035 million in fiscal 2022.

3

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

Net Sales by Product Segment(Millions of yen)
Year ended
December 31,
2023

Year ended
December 31,
2022

ChangeChange(%)

Oral Care Products

72,847

72,299548

0.8%

Beauty Care Products

24,34826,482(2,134)(8.1%)

Fabric Care Products

60,957

60,120837

1.4%

Living Care Products

22,187

23,630(1,443)(6.1%)

Pharmaceutical Products

26,341

25,144

1,196

4.8%

Other Products

60,69757,877

2,819

4.9%

Oral Care ProductsThis product segment consists of toothpastes, toothbrushes, dental rinses and other related products.

In toothpastes, although sales of CLINICA PRO toothpastes and NONIO Plus Whitening Toothpaste
were strong, due in part to revisions to sales promotions for some brands, overall sales decreased
year on year.

In toothbrushes, Lion launched the new LION “Electric Assist” Toothbrush, and the new CLINICA PRO
Toothbrush Rubber Head, which uses a rubbery material for the brush portion, received favorable customer
reviews. As a result, overall sales increased year on year.

In dental rinses, sales of NONIO Mouthwash were down year on year, and overall sales decreased
year on year.

Overall sales of Oral Care Products increased 0.8% year on year.

Beauty Care ProductsThis product segment consists of hand soaps, body washes, antiperspirants and deodorants and otherrelated products.

In hand soaps, although sales of KireiKirei Medicated Hand Conditioning Soap remained steadyoverall sales decreased year on year due to market contraction.

In body washes, sales of hadakara Body Soap Foam were firm, but sales of the liquid version werelower year on year. As a result, overall sales declined year on year.

Overall sales of Beauty Care Products decreased 8.1% year on year.
4Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

Fabric Care ProductsThis product segment consists of fabric softeners, laundry detergents and other related products.

In fabric softeners, sales of SOFLAN Premium Deodorizer decreased year on year. However, due inpart to the launch of new SOFLAN Airis, overall sales increased year on year.

In laundry detergents, Lion launched new highly concentrated liquid laundry detergent NANOX one, whichcuts through odors and grime while protecting clothing from discoloration. Overall sales increased year on
year. However, although the Group has striven to achieve major business expansion through theintroduction of this and other new offerings in the Fabric Care Products field, their sales remained lower
than the target, with year-on-year growth in total sales of Fabric Care Products amounting to only 1.4%.

Living Care ProductsThis product segment consists of household cleaners, dishwashing detergents and other related
products.

In household cleaners, sales of toilet cleaners decreased year on year, while sales of LOOK Plus BathCleansing bath detergent were stagnant. Overall sales declined year on year.

In dishwashing detergents, sales of CHARMY Magica were steady, but sales of CHARMY Crysta fordishwashers decreased year on year. Overall sales declined year on year.

Overall sales of Living Care Products decreased 6.1% year on year.

Pharmaceutical ProductsThis product segment consists of antipyretic analgesics, eye drops, acne medicines and other related
products.

In antipyretic analgesics, sales of BUFFERIN PREMIUM DX were strong, but sales of BUFFERINPREMIUM and BUFFERIN A declined year on year. Overall sales decreased year on year.

In eye drops, sales of the Smile 40 GOLD series were steady, and overall sales increased year on
year.

In acne medicines, sales of PAIR® Acne Cream W were strong, and overall sales were up substantiallyyear on year.

5Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

In cooling gel sheets for feet, sales of Kyusoku Jikan Ashi-Sukkiri Sheet were strong due to a recovery
in demand from inbound visitors to Japan, and sales were up substantially year on year.

Overall sales of Pharmaceutical Products increased 4.8% year on year.

Other ProductsThis product segment consists of pet supplies, gifts and novelty products, products sold through dental
clinics and other related products.

In pet supplies, sales of Nioi wo Toru Suna (Deodorizing Cat Litter) were steady, and sales of oral careproducts were strong. Overall sales increased year on year.

In gifts and novelty products, sales of gifts decreased, and overall sales also decreased year on year.

Overall sales of Other Products increased 4.9% year on year.
Industrial Products Business
The Industrial Products Business segment includes the Mobility, Electronics and Detergents for
Institutional Use Products fields. These businesses handle products that include anti-sticking agentsfor tire rubber, electro-conductive carbon for secondary batteries, and detergents for institutional andkitchen use, respectively. Segment net sales decreased 1.5% year on year. Segment profit decreased
3.8%.
(Millions of yen)
Year ended
December 31,
2023
Net sales

57,191

Segment profit

3,013

Year ended
December 31,
2022

Ratio tonet sales

Ratio tonet sales

58,076
5.3%

3,132

5.4%

ChangeChange(%)(885)(1.5%)(118)(3.8%)

Note: Net sales include internal sales within and among segments, which amounted to ¥18,841 million in fiscal 2023
and ¥20,226 million in fiscal 2022.

In the Mobility field, sales of anti-sticking agents for tire rubber were firm, and overall sales increased
year on year.
In the Electronics field, sales of electro-conductive carbon for secondary batteries were steady, andoverall sales increased year on year.
In the Detergents for Institutional Use Products field, sales of hand soaps decreased year on year, but
sales of laundry detergents were favorable. Overall sales increased year on year.
6Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

In addition to the above, Group internal sales recorded by manufacturing subsidiaries decreased,leading to decreased year-on-year sales for the entire segment.
Overseas Business
The Overseas Business segment comprises business operations located in Southeast and South Asia,
including Thailand and Malaysia, as well as Northeast Asia, including China and South Korea. Overall
net sales increased 14.5% year on year (or an increase of 8.0% at constant currency excluding
exchange rate fluctuations). Segment profit increased 67.8% year on year.

(Millions of yen)
Year ended
December 31,
2023
Net salesYear ended
December 31,
2022

Ratio tonet sales

148,067

Segment profit

8,587

Ratio tonet sales

129,342
5.8%

5,116

4.0%

ChangeChange(%)

18,724

14.5%

3,471

67.8%

Note: Net sales include internal sales within and among segments, which amounted to ¥13,949 million in fiscal 2023
and ¥11,300 million in fiscal 2022.

Net Sales by Region(Millions of yen)
Year ended

Year ended

December 31,

December 31,

2023

2022

ChangeChange(%)
Southeast andNet sales

90,521

81,249

9,271

11.4%

South Asia

Segment profit

5,122

2,378

2,743

115.4%Net sales

57,54648,093

9,453

19.7%

Segment profit

3,464

2,737

727

26.6%

Northeast Asia

Note: Due to the establishment of a joint venture company in Bangladesh in the previous fiscal year, the region
previously referred to as “Southeast Asia” has been changed to “Southeast and South Asia.”

Net Sales by Region
In Southeast and South Asia, net sales were up 11.4% year on year (or up 3.8% at constant currency
excluding exchange rate fluctuations), and segment profit was up 115.4%.

In Thailand, sales of laundry detergents increased year on year, while sales of Shokubutsu Monogatari
body washes were strong. Overall sales after yen conversions were up substantially year on year.

In Malaysia, sales of TOP laundry detergents increased year on year, and overall sales after yen
conversions were up year on year.
In Northeast Asia, overall sales were up 19.7% year on year (or up 15.2% at constant currency excluding
exchange rate fluctuations), and segment profit was up 26.6%.
7

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

In China, sales of White&White toothpaste and SYSTEMA toothbrushes were strong. Overall sales
after yen conversions increased substantially year on year.

In South Korea, sales of laundry detergents were favorable. Overall sales after yen conversions
increased year on year.

Other (Construction Contracting Business, etc.)(Millions of yen)
Year ended
December 31,
2023

Year ended
December 31,
2022

Ratio tonet sales

Net sales

20,909Segment profit

1,375

Ratio tonet sales

15,394
6.6%

1,202

7.8%

ChangeChange
(%)

5,515

35.8%

173

14.4%

Note: Net sales include internal sales within and among segments, which amounted to ¥19,290 million in fiscal 2023
and ¥11,918 million in fiscal 2022.

(2) Forecast of Consolidated Financial Results for the Fiscal Year Ending December 2024

(Millions of yen)
Fiscal 2024 forecast

Fiscal 2023

ChangeChange (%)

Net sales

410,000

402,767

7,232

1.8%

Core operating income

23,00020,133

2,866

14.2%

Operating profit

27,00020,505

6,494

31.7%

19,00014,624

4,375

29.9%

66.81

51.42

15.39

29.9%

Profit attributable to owners of
the parent
Basic earnings per share (yen)Note: Core operating income is an earnings indicator the Company uses to measure regular business performance and is
calculated by subtracting selling, general and administrative expenses from gross profit.

In terms of the Group’s business environment, performance in domestic and overseas consumer products
is expected to be steady, despite the possibility of such risks as conservative consumer sentiment towards
purchasing in reaction to rising prices, higher raw material prices resulting from geopolitical factors, andexchange rate fluctuations.
Amid these circumstances, the Lion Group will push ahead with revising its business portfolio andimproving business efficiency while focusing on promoting the measures described below in order toachieve business growth and improved profitability in each segment.
In the Consumer Products Business segment, the Lion Group will pursue business growth in highprofitability areas through such initiatives as launching new brands in the oral care field and commencing
sales of new high value-added pharmaceutical products. At the same time, the Group will review its
8Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

operations in low-profitability areas.
In the Industrial Products Business segment, the Lion Group will strive to expand its business related toeco-friendly materials, especially electro-conductive carbon for secondary batteries, a key offering in thissegment, in order to increase profitability and to contribute to sustainability through its products.
With regard to the Overseas Business segment, the Lion Group will continue to develop its business in the
personal care field, which includes oral care and beauty care products, while endeavoring to improve
profitability in the home care field. In terms of market regions, the Group will place the greatest emphasison the Chinese market in addition to pursuing the early expansion of businesses in newly entered countries(Bangladesh and Vietnam).
As a result of the above, consolidated results forecasts for fiscal 2024 are as follows: net sales of ¥410,000
million (up 1.8% year on year), core operating income of ¥23,000 million (up 14.2% year on year), operating
profit of ¥27,000 million (up 31.7% year on year) and profit for the period attributable to owners of theparent of ¥19,000 million (up 29.9% year on year).
Lion utilized the following foreign exchange rates in the calculation of the aforementioned forecasts.
¥145 = US$1.00¥4.0 = 1.00 baht

9

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

2. Financial Status(1) Status of Consolidated Assets, Liabilities and Equity
2023

2022

ChangeTotal assets (millions of yen)

486,363469,278

17,084

Total equity (millions of yen)

298,134

279,168

18,966

Ratio of equity attributable to owners of
57.6%
56.3%
1.3%
the parent to total assets1 (%)
Equity attributable to owners of the parent
985.43929.7255.72
per share2 (yen)Notes: 1. Ratio of equity attributable to owners of the parent to total assets = (Total equity – Non-controllinginterests) / Total assets
2. Non-controlling interests are excluded from the calculation of equity attributable to owners of theparent per share.

Total assets rose ¥17,084 million compared with the previous consolidated fiscal year-end to ¥486,363
million. This was primarily attributable to an increase in property, plant and equipment. Total equity
increased ¥18,966 million to ¥298,134 million. The ratio of equity attributable to owners of the parent tototal assets stood at 57.6%.
(2) Cash Flows
Consolidated Cash Flows(Millions of yen)
2023

2022

ChangeCash flows from operating activities

30,06841,962(11,893)

Cash flows from investing activities(34,790)(19,535)(15,254)

Cash flows from financing activities(11,762)(19,821)

8,058

931

1,222

(290)

Net increase (decrease) in cash and cash equivalents(15,552)

3,827(19,379)

Cash and cash equivalents at end of period

85,526

101,078(15,552)

Effect of exchange rate change on cash and cash equivalents

Net cash provided by operating activities totaled ¥30,068 million, due mainly to profit before tax.
Net cash used in investing activities totaled ¥34,790 million, due in part to the purchase of property, plantand equipment.
Net cash used in financing activities totaled ¥11,762 million. Major components of this outflow included
the payment of dividends.
As a result of the above, cash and cash equivalents as of December 31, 2023 decreased ¥15,552 million
compared with December 31, 2022, to ¥85,526 million.

(3) Forecast of Fiscal 2023 Consolidated Cash Flows
In cash flows from operating activities, Lion projects profit before tax of approximately ¥29,000 million.
Depreciation and amortization is estimated to total about ¥20,000 million. On the other hand, the Group10

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

anticipates an outflow of about ¥18,000 million due in part to tax payments.
In cash flows from investment activities, Lion plans to undertake capital expenditures of around ¥20,000
million during fiscal 2024.
Cash flows from financing activities are expected to yield an outflow of about ¥10,000 million mainly due
to cash dividends paid.
Based on these projections, Lion estimates that cash and cash equivalents at the end of fiscal 2024 will
be up approximately ¥1,000 million year on year.

(4) Cash Flow Indicators
Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

Fiscal 2023

Ratio of equity attributable to owners of theparent to total assets (%)

54.7

53.2

58.8

56.3

57.6

Ratio of equity attributable to owners of theparent to total assets on a market value basis
(%)

162.3

166.8

104.4

91.7

76.5

Debt redemption (years)

0.3

0.3

0.6

0.8

1.1

Interest coverage ratio

431.9

719.4

564.8

1,021.4

1,622.7

Notes:
1. Ratio of equity attributable to owners of the parent to total assets =Equity attributable to owners of the parent / Total assets
2. Ratio of equity attributable to owners of the parent to total assets on a market value basis = Market value of shares / Total assets
3. Debt redemption (years): Interest-bearing liabilities / Cash flows from operating activities
4. Interest coverage ratio: Cash flows from operating activities / Interest payments
5. All the above indicators are calculated based on consolidated financial data.
6. Market value of shares is calculated as the closing stock price as of the end of the term multiplied by the number of outstanding
stocks as of the end of the term (after the deduction of treasury stocks).
7. Cash flows from operating activities are those stated in the Consolidated Statement of Cash Flows.
8. “Interest-bearing liabilities” means all those liabilities that bear interest among the liabilities in the Consolidated Statement of
Financial Position. Figures in the Consolidated Statement of Cash Flows are used for the amount of interest paid.

11

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

3. Basic Policy on the Distribution of Earnings and Cash Dividends
Lion considers returning profits to shareholders on a continuous and stable basis by increasing its
consolidated earnings capacity to be one of its most important management issues. To this end, theCompany strives to ensure the payment of continuous and stable cash dividends, aiming for a consolidated
payout ratio of 30%, and bases the acquisition of treasury stock on comprehensive reviews to ensure thatit maintains the levels of internal reserves required to secure medium- and long-term growth. Lion allocatesinternal reserves to research and development, capital investment in production facilities and theacquisition of external resources, aiming to reinforce the Company’s growth potential and to develop asustainable business foundation.
Taking into consideration the Company’s cash dividend payment record, as well as its dividend payout
ratio target, Lion’s Board of Directors resolved to pay an interim dividend of ¥13 per share (payment date:
September 5, 2023) and a year-end dividend of ¥13 per share (payment date: March 7, 2024) for fiscal
2023.
With regard to dividends for fiscal 2024, in accordance with its basic policy on the distribution of earnings
and cash dividends, Lion plans to pay an interim dividend of ¥13 per share and a year-end dividend of ¥14
per share, for a total annual dividend of ¥27 per share.

12Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

II. Corporate Group
The Lion Group consists of Lion Corporation, 23 consolidated subsidiaries and four equity-method affiliates.
The Group’s principal businesses are the Consumer Products Business, Industrial Products Business andOverseas Business. Other business activities involve various operations and other services, likeconstruction related to the above businesses.
The relationship between Group business activities and business segments is shown below, which isbased on the categorization used for business segments.

Business segment

Main activities

Main companies

Consumer
Products
Business

Manufacture andsale of domestic
commodities and
OTC drugs in Japan

Domestic
affiliates

Lion Corporation
Lion Chemical Co., Ltd.
Lion Pet Co., Ltd.
issua Co. Ltd.
Lion Dental Products Co., Ltd.
Japan Retail Innovation Co., Ltd.

Industrial
Products
Business

Manufacture andsale of chemical raw
materials, industrial
products and otheritems in Japan andoverseas

Domestic
affiliates

Lion Corporation
Lion Chemical Co., Ltd.
Lion Specialty Chemicals Co., Ltd.
Lion Hygiene Co., Ltd.

Overseas
Business

Manufacture andsale of commodities
and chemical raw
materials overseas

Overseas
affiliates

Lion Daily Necessities Chemicals (Qingdao) Co.,Ltd.
Lion Home Products (Taiwan) Co., Ltd.
Lion Corporation (Korea)
Lion Corporation (Singapore) Pte Ltd
Lion Innovation Center (Shanghai) Co., Ltd.
Lion Corporation (Hong Kong) Ltd.
Lion Advertising Ltd.
Lion Kallol Limited
Lion Corporation (Thailand) Ltd.
Health Care Service Co., Ltd.
Eastern Silicate Co., Ltd.
Southern Lion Sdn. Bhd.
PT. Ipposha Indonesia
PT. Lion Wings
Merap Lion Holding Corporation

Other

Design, construction
and maintenance offacilities; real estate
management;
human resource
services, etc.

Domestic
affiliates

Lion Expert Business Co., Ltd.
Lion Engineering Co., Ltd.
Kyuzitsuhack Co., Ltd.
PLANET, INC.

13

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

III. Management Policies
1. Basic Management Policies
The Lion Group has maintained a commitment to “Fulfilling a Spirit of Love” since its founding. With thismotto and its purpose, “Make a difference in everyday lives by redesigning habits: ReDesign,” as thefoundation of Group management, the Lion Group provides customers with superior products and services
that are useful in realizing health, comfort and cleanliness in daily living. The Group sees contributing to
the realization of a sustainable society through such efforts as its mission.
The Lion Group continually takes steps to further improve its corporate value. To this end, the Group strives
to provide products and services that place the utmost priority on customer satisfaction based on an
accurate understanding of the changes taking place in peoples’ values and the social role companies are
required to play. At the same time, Lion promotes environmental preservation activities and enhances its
corporate governance systems in order to remain a highly trustworthy company that meets the
expectations of stakeholders, including shareholders, customers, business partners, local communities,
society at large and employees.
2. Long-Term Management Strategies
The Lion Group’s has designated “Becoming an advanced daily healthcare company” as its management
vision for 2030.
To achieve this management vision, the Lion Group is reinforcing purpose-driven management and aims
to contribute to the realization of a sustainable society and achieve business growth. To this end, Lion has
formulated the Vision2030 long-term strategic framework and launched Vision2030 1st STAGE, its
medium-term management plan for the three-year period that began in 2022.
Vision2030 Long-Term Strategic Framework
Management Vision
Becoming an advanced daily healthcare company
Advancing Three Growth Strategies
Lion will speed up business growth by advancing three growth strategies.
a. Accelerate growth in four fields of value creationb. Transform our business foundations for growthc. Generate dynamism to realize innovative change
Reinforce Initiatives to Address the Sustainability Material Issues
With creating healthy living habits and promoting environmental initiatives for a sustainable planet as our
top priority material issues, we will implement sustainability initiatives that realize synergies with our growthstrategies.
14

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

Envisioned Financial Performance in 2030
・Consolidated net sales

Approx. ¥600 billion (approx. 50% from theOverseas Business)

・EBITDA

Approx. ¥80 billion

・Core operating income2

Approx. ¥50 billion

・Return on invested capital (ROIC)

8–12%

・Return on equity (ROE)

10–14%

1

Notes:
1. EBITDA is an indicator of profitability on a cash basis calculated as the sum of core operating income and depreciation andamortization (excluding depreciation and amortization of right-of-use assets).
2. Core operating income is an earnings indicator the Company uses to measure regular business performance by subtracting
selling, general and administrative expenses from gross profit.

3. Management Issues
To achieve its management vision, the Lion Group considers swiftly implementing and realizing resultsfrom the strategies of Vision2030 1st STAGE, a medium-term management plan for the three years
beginning 2022, a matter of importance. Accordingly, the Group is implementing the measures described
below.
Implementation Status of the Three Growth Strategies(1) Accelerate Growth in Four Fields of Value Creation
The Group launched “Okuchi Plus You” Corporate Well-Being Support Service in July 2022 in order toassist businesses and local governments in the practice of well-being management. Through these andother measures, the Group has striven to contribute to the entrenchment of healthy living habits among
the general public, with the aim of creating new business opportunities that will, in turn, lead to market
expansion.
Having also placed the greatest emphasis on the Chinese market in terms of pursuing business growth,
the Group aims to achieve regional net sales of around ¥100,000 million in 2030. Starting with marketingoral care products, the Group is currently striving to expand sales areas and channels in this country as
well as product categories to be delivered.
(2) Transform Our Business Foundations for Growth
The Lion Group has positioned a new toothpaste factory completed in 2021 (Sakaide City, Kagawa
Prefecture) as a main Group base for toothpaste production. Therefore, the Group will take full advantageof this facility to establish an efficient and sustainable production and supply structure.
Moreover, having launched new core systems in 2022, the Group is currently striving to increase thesophistication of business and supply chain management via the use of swift output from these systems
with regard to demand and supply planning, procurement, production, sales and other management
information.
15

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

In terms of developing foundations for overseas business growth, the Group made new entries into
Bangladesh (2022) and Vietnam (2023), as stipulated under medium-term management plan targets.
Looking ahead, the Group will endeavor to swiftly bring its operations in these two countries on a track
while exploring opportunities for new entries into other countries.
(3) Generate Dynamism to Realize Innovative Change
The Group has updated its human resource management systems, including compensation and humanresource development systems. Based on these systems, the Group is enhancing its organizational
capabilities by helping employees pursue autonomous growth and nurturing human resources capable
equipped with highly sophisticated expertise.
The Group also aims to help each employee realize their own life plans and desired lifestyles. To this end,
the Group is enhancing the lineup of programs designed to offer more flexible workstyle options toemployees while developing a comfortable office environment via, for example, the relocation of the Head
Office to the new building.
Status of Initiatives to Address the Sustainability Material Issues
With regard to promoting environmental initiatives for a sustainable planet, one of top-priority material
issues, the Group is engaged in collaboration with local governments and external corporations to promoteresource recycling and to develop resource-saving products. The Group has also launched a serviceoriented business, which proposes new habits for oral care, and otherwise promoted various measures toaddress another top priority, creating healthy living habits.
In addition, the Group has conducted scenario analysis aimed at assessing climate change-related risks
and opportunities that could affect its operations in accordance with a framework proposed by the Task
Force on Climate-related Financial Disclosures (TCFD). The results of this scenario analysis were publicly
disclosed in 2023.
Progress and Challenges
Outcomes of the implementation of initiatives based on the three growth strategies included growth inconsolidated net sales at a pace exceeding the growth rate recorded over the course of three years prior
to the launch of the medium-term management plan. This suggests that the Group has, to a certain degree,
succeeded in achieving its medium-term management plan theme, namely, “shift gears toward accelerated
growth.” In particular, in the Overseas Business Segment, the Group has gained greater presence in its
existing market regions, including China. The ratio of segment sales to consolidated net sales stably
expanded to 33% in the fiscal year ended December 31, 2023, suggesting robust progress against thesegment’s target of raising this ratio to around 50% by December 31, 2030.
On the earnings front, however, the Group has yet to meet its initial profit target because worldwide surges
in resource prices led to higher raw material prices and negatively affected its earnings power, while salesof some new products, released in the domestic fabric care field with ambitious sales targets, were lower
than estimated.
16

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

Aware of these circumstances, the Group has positioned the fiscal year ending December 31, 2024, thefinal year of Vision2030 1st STAGE, as a year for restructuring its foundations to secure readiness tolaunch the next medium-term management plan. Accordingly, the Group will review its business portfolio
by reorganizing low-profitability businesses and reallocating management resources, in addition to
redoubling its efforts to enhance the efficiency of business management. Furthermore, the Group will
sharpen its focus on priority market regions and business fields in terms of executing investment. In theseways, the Group will strive to enhance its corporate value to realize its vision for 2030.
IV. Basic Approach Regarding the Selection of Accounting Standards
The Lion Group voluntarily adopted International Financial Reporting Standards (IFRS) from the firstquarter of fiscal 2018 in order to improve the international comparability of Lion Group financial statements
and reinforce Group business management.

17

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

V. Consolidated Financial Statements and Notes(1) Condensed Consolidated Statement of Financial Position(Millions of yen)

December 31, 2022

December 31, 2023

AssetsCurrent assets
Cash and cash equivalents

101,078

85,526

Trade and other receivables

71,26375,230Inventories

53,90956,090

Other financial assets

7,977

12,276

Other current assets

3,462

3,151

Total current assets

237,691

232,274

130,137

140,671

Non-current assets
Property, plant and equipment
Goodwill

327

327

Intangible assets

23,91722,712Right-of-use assets
Investments accounted for using theequity method
Deferred tax assets

31,51831,313

8,939

17,487

3,912

4,357

Retirement benefit assets

9,147

10,826

Other financial assets

22,85625,475

Other non-current assets

831

917

Total non-current assets

231,587

254,089

469,278

486,363

Total assets

18

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023
(Millions of yen)
December 31, 2022

December 31, 2023

Liabilities and equity
Liabilities
Current liabilities
Trade and other payables

126,024

126,158

Borrowings

1,433

148

Income tax payables

2,182

2,508

Provisions

1,444

2,399

Lease liabilities

1,746

2,043

Other financial liabilities

1,681

2,363

Other current liabilities

7,061

7,711

Total current liabilities

141,574

143,333

Non-current liabilities
141―

Deferred tax liabilities

2,701

5,847

Retirement benefit liabilities

10,431

4,531

Borrowings

Provisions

2,058

2,046

Lease liabilities

28,84928,150

Other financial liabilities

2,378

2,452

Other non-current liabilities

1,974

1,867

Total non-current liabilities

48,53644,896

190,110

188,229

34,43334,433

Total liabilities
EquityShare capital
Capital surplus

31,06931,118Treasury stock(8,056)(7,868)Other components of equity

13,966

18,377Retained earnings

192,842204,255

Equity attributable to owners of the parent

264,255

280,316

Non-controlling interests

14,912

17,817

Total equity

279,168

298,134

469,278

486,363

Total liabilities and equity

19Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

(2) Consolidated Statement of Income and Statement of Comprehensive Income
Consolidated Statement of Income(Millions of yen)
Year Ended December 31,
2022

Year Ended December 31,
2023

Net sales

389,869

402,767

Cost of sales(215,263)(222,168)

Gross profit
Selling, general and administrative
expenses
Other income

174,605

180,598(151,046)(160,465)

6,738

2,196

(1,453)(1,824)

Other expenses

28,84320,505

Finance income

Operating profit

804

1,106

Finance costs
Share of profit of investments accounted forusing the equity method
Profit before tax

(179)

(843)

1,824

1,607

31,292

22,375

Income taxes(8,182)(5,687)

23,11016,687

21,93914,624

Profit for the period
Profit for the period attributable to:
Owners of the parent
Non-controlling interests

1,170

2,062

Profit for the period

23,11016,687

Basic (Yen)

77.04

51.42

Diluted (Yen)

76.91

51.35

Earnings per share20

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

Consolidated Statement of Comprehensive Income(Millions of yen)
Year Ended December 31,
2022

Year Ended December 31,
2023

23,11016,687

729

1,803

2,523

3,853

24

(74)

3,277

5,582

(42)

20

5,680

4,284

5,638

4,305

Profit for the period
Other comprehensive income
Items that will not be reclassified as profit
or loss
Net gain (loss) on revaluation offinancial assets measured at fair value
through other comprehensive income
Remeasurements of defined benefit
plans
Share of other comprehensive income(loss) of investments accounted forusing the equity method
Total items that will not be reclassified as
profit or loss
Items that may be subsequently
reclassified as profit or loss
Net gain (loss) on derivatives
designated as cash flow hedges
Exchange differences on translation offoreign operations
Total items that may be subsequently
reclassified as profit or loss
Total other comprehensive income, net oftax
Comprehensive income for the period

8,915

9,887

32,025

26,575Comprehensive income for the period
attributable to:
Owners of the parent

29,411

23,353

Non-controlling interests

2,614

3,222

Comprehensive income for the period

32,025

26,57521

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

(3) Consolidated Statement of Changes in Equity
Fiscal 2022 (January 1 to December 31, 2022)(Millions of yen)
Equity attributable to owners of the parent
Other components of equity

Share
capitalBalance at January 1, 2022

Capitalsurplus34,433

Treasurystock

35,189Net gain (loss)
on revaluation offinancial assets RemeasureSubscription
measured at fairments ofrights tovalue through defined benefit
sharesotherplanscomprehensive
income(4,731)

135

8,541

―

670

2,523

670

2,523

(281)

(2,523)

Changes during the period
Comprehensive income
Profit for the period
Other comprehensive
incomeTotal comprehensive
income for the period

―

―

―

―

Transactions with owners
Dividends
Acquisition of treasury
stock
Disposal of treasury
stock
Cancellation oftreasury stock(10,001)

Share-based payments
Changes due tobusiness combination
Transfer from othercomponents of equity toretained earnings
Total transactions withownersBalance at December 31,
2022

1

46

(4,259)

6,630

(12)

137

―

(4,120)(3,324)

(12)

(281)

(2,523)34,43331,069(8,056)

123

8,930

―

22

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

Equity attributable to owners of the parent
Other components of equity
Net gain (loss)
Exchange
on derivatives differences ondesignated as translation of
cash flow
foreignhedgesoperations
Balance at January 1, 2022―

634

Retainedearnings

Total

Noncontrollinginterests

Total

Total equity

9,311

177,370

251,572

13,442265,014―

21,93921,939

1,170

23,110

7,471

1,443

8,915

29,411

2,614

32,025(6,899)(1,169)Changes during theperiodComprehensive income
Profit for the period
Other
comprehensive
incomeTotal comprehensive
income for the period
Transactions withowners

(42)

4,319

7,471

(42)

4,319

7,471

21,939Dividends―(6,899)Acquisition oftreasury stock
Disposal of treasury
stock
Cancellation oftreasury stock
Share-based
payments
Changes due tobusiness
combination―(10,001)(10,001)

(12)

35

35

―

―

―

137

137

―

―

―

Transfer from othercomponents of equity
to retained earnings
Total transactions withownersBalance at December 31,
2022(2,371)(2,804)

2,804

―

25

(8,069)

25

―

―

―

(2,817)(6,466)(16,728)(1,144)(17,872)

(42)

4,953

13,966

192,842

264,255

14,912

279,168

23

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

Fiscal 2023 (January 1 to December 31, 2023)(Millions of yen)
Equity attributable to owners of the parent
Other components of equity

Share capital

Balance at January 1, 2023

34,433

CapitalsurplusTreasurystock

31,069Net gain (loss)
on revaluation offinancial assets RemeasureSubscription
measured at fairments ofrights tovalue through defined benefit
sharesotherplanscomprehensive
income(8,056)

123

8,930

―

1,728

3,811

1,728

3,811

(432)

(3,811)

Changes during the period
Comprehensive income
Profit for the period
Other comprehensive
incomeTotal comprehensive
income for the period
Transactions withowners――――Dividends
Acquisition of treasury
stock
Disposal of treasury
stock
Share-based
payments
Changes in ownershipinterests in controlledsubsidiary
Transfer from othercomponents of equity toretained earnings
Total transactions withownersBalance at December 31,
2023

(1)
189

(73)

49

―

49

187

(73)

(432)

(3,811)

34,433

31,118(7,868)50

10,227―24

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023
Equity attributable to owners of the parent
Other components of equity
Net gain (loss) Exchange
on derivatives differences ondesignated as translation of
cash flow
foreignhedgesoperations
Balance at January 1, 2023

(42)

4,953

Retainedearnings

Total

Noncontrollinginterests

Total

Total equity

13,966

192,842

264,255

14,912

279,168―

14,624

14,624

2,062

16,687

8,728

1,159

9,887

Changes during the period
Comprehensive income
Profit for the period
Other comprehensive
incomeTotal comprehensive
income for the period
Transactions withowners

20

3,168

8,728

20

3,168

8,728

14,62423,353

3,222

26,575

Dividends―(7,393)(7,393)(740)(8,133)Acquisition oftreasury stock
Disposal of treasury
stock
Share-based
payments
Changes inownership interests incontrolled subsidiary

―

(1)

53

53

―

49

49

―

―

(73)

Transfer from othercomponents of equity toretained earnings
Total transactions withownersBalance at December 31,
2023

(1)
(63)

(4,243)

4,243

―

423

423

―

―

―

(4,316)(3,212)(7,291)(317)(7,609)

(21)

8,122

18,377204,255

280,316

17,817298,134

25

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

(4) Consolidated Statement of Cash Flows(Millions of yen)
Year Ended
December 31, 2022
Cash flows from operating activities
Profit before tax
Depreciation and amortization
Impairment loss
Interest and dividend income
Interest expenses
Share of loss (profit)s of investments
accounted for using the equity method
Loss (gain) on disposal of non-current
assetsDecrease (increase) in trade and otherreceivables
Decrease (increase) in inventories
Increase (decrease) in trade and otherpayablesIncrease in net defined benefit liability
Other
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Cash flows from operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Expenditures for acquisition of right-of-use
assetsPurchase of other financial assets
Proceeds from sales of other financial
assetsExpenditures for purchase of stocks ofaffiliated companies
Proceeds from sales of affiliates
Purchase of shares of subsidiaries
resulting in change in scope of
consolidation
Net increase (decrease) in short-termloans payable
Other
Cash flows from investing activities
Cash flows from financing activities
Net increase (decrease) in short-termloans payable
Repayment of long-term borrowings
Cash dividends paid
Cash dividends paid to non-controllinginterests
Repayment of lease liabilities
Purchase of treasury stock

26

Year Ended
December 31, 2023

31,292
17,665
501
(671)
179

22,37520,201187(1,003)774(1,824)(1,607)(4,932)716

992(2,454)(1,065)(1,321)(870)(3,982)

1,070
3,139
45,4771,592(41)(5,066)
41,962(2,092)
1,326
33,1201,688(18)(4,721)30,068(1,312)(18,490)(3,715)(23,317)

5,521

478

(4,655)(1,263)

―

(406)

(331)

(762)

677

854

―

(7,087)

35

―

(96)

―

―

1,005

(883)
(19,535)(575)(34,790)―(1,150)(274)(6,895)(290)(7,385)(1,169)(740)(1,504)(10,001)(2,618)(1)

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023
Proceeds from non-controllingshareholders
Other
Cash flows from financing activities
Effect of exchange rate changes on cash
and cash equivalents
Increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodCash and cash equivalents at end of period

―

423

25
(19,821)1(11,762)

1,222

931

3,827

(15,552)

97,250101,078

101,078

85,526(5) Notes to Condensed Consolidated Financial Statements
Notes relating to the assumption of a going concern
Not applicable.
Segment Information(1) Overview of reportable segments
The Group’s reportable segments are component units of the Company for which separate financial information isavailable and that are subject to regular review by the Board of Directors for the purpose of making decisions regarding
the allocation of management resources and evaluating business performance.
The Group’s business divisions are organized by product category; each business division formulates acomprehensive strategy and carries out business activities for the products it handles. Affiliated companies in Japan
undertake business activities pertinent to the characteristics of their respective products and services.
Affiliated companies located overseas are independent management units that conduct business activities pertinent
to the characteristics of the regions in which they operate.
Accordingly, the Group comprises three reportable segments divided by product and service type and by region,
which are, in turn, based on business divisions and companies; namely, the reportable segments are Consumer
Products Business, Industrial Products Business and Overseas Business.

The Group’s reportable segments are as follows.
A.

Consumer Products Business
The Consumer Products Business engages in the manufacture and sale of commodities, over-the-counter drugs
and foods with function claims, primarily in Japan.
Main products: Toothpastes, toothbrushes, hand soaps, antipyretic analgesics, eye drops, health tonic drinks,
laundry detergents, dishwashing detergents, fabric softeners, household cleaners, bleaches and pet supplies
B. Industrial Products Business
The Industrial Products Business engages primarily in the manufacture and sale of chemical raw materials,
industrial products and other items in Japan and overseas regions.
Main products: Activators, electro-conductive carbon and detergents for institutional use
C. Overseas Business
The Overseas Business engages mainly in the manufacture and sale of commodities by affiliated overseas
businesses.
D. Other Business
The Other Business segment comprises business activities not included in the above business segments.
Lion subsidiaries located in Japan primarily undertake operations related to Group businesses.
Main products and services: Construction contracting, real estate management and temporary staffing
Intersegment transaction and transfer prices are, in principle, determined based on negotiations reflecting
market prices, total supplier costs and the Company’s asking prices.

27

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

(2) Net Sales and Performance of Reportable Segments
Fiscal 2022 (January 1 to December 31, 2022)(Millions of yen)
Reportable Segment
Other

Total

Adjustment2 Consolidated3

Consumer
Products
Business

Industrial
Products
Business

Overseas
Business

External

230,520

37,849118,0423,475

389,887(18)

389,869

Intersegment1

35,035

20,226

11,30011,91878,480(78,480)

─

TotalCore operating
incomeOther income

265,555

58,076

129,342

15,394

468,368(78,499)

389,869

11,454

3,132

5,116

1,202

20,904

2,654

23,559Net sales

6,738

Other expenses(1,453)Operating profit

28,843Finance income

804

Finance costs
Share of profit ofinvestments accounted
for using the equity
methodProfit before tax

(179)
1,824
31,292Other monetary items
Depreciation
and17,665
10,873
1,202
3,320
117
15,5142,151
amortization
Notes:
1. Includes intra-segment transactions within the reportable segments.
2. A positive ¥2,654 million adjustment of core operating income mainly comprises intersegment eliminations
and corporate expenses not allocated to any reportable segment.
3. Core operating income is reconciled with gross profit as follows.

Gross profit
Selling, general and administrative expenses(Millions of yen)
174,605(151,046)

Core operating income

23,559Core operating income is calculated as gross profit less selling, general and administrative expenses, andis the basis on which the Board of Directors evaluates the performance of each segment.

28

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

Fiscal 2023 (January 1 to December 31, 2023)(Millions of yen)
Reportable Segment
Consumer
Products
Business

Industrial
Products
Business

Overseas
Business

Other

Total

Adjustment2 Consolidated3

Net sales
228,679

38,349134,118

1,619

402,767－

402,767Intersegment1

38,70018,841

13,94919,29090,781(90,781)－

Total

267,380

57,191

148,067

20,909493,548(90,781)402,767Core operating income

4,799

3,013

8,587

1,375

17,775

2,358

20,133(1) External(2)

Other income

2,196

Other expenses(1,824)

Operating profit

20,505

Finance income

1,106

Finance costs
Share of profit ofinvestments accounted
for using the equity
methodProfit before tax(843)

Other monetary items
Depreciation andamortization
Notes:

1,607
22,375

12,535

1,212

3,678

125

17,551

2,649

20,201

1. Includes intra-segment transactions within the reportable segments.
2. A positive ¥2,358 million adjustment of core operating income mainly comprises intersegment eliminations
and corporate expenses not allocated to any reportable segment.
3. Core operating income is reconciled with gross profit as follows.
(Millions of yen)
Gross profit
180,598
Selling, general and administrative expenses(160,465)Core operating income

20,133

Core operating income is calculated as gross profit less selling, general and administrative expenses, andis the basis on which the Board of Directors evaluates the performance of each segment.

(3) Information by product and service category
Fiscal 2022 (January 1 to December 31, 2022)(Millions of yen)
Healthcare
Sales to externalcustomers

189,327

HouseholdChemicals

168,993

27,311

29

Other

Total
4,237

389,869

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

Fiscal 2023 (January 1 to December 31, 2023)(Millions of yen)
Healthcare
Sales to externalcustomers

Household197,778

Chemicals

175,510

27,351

Other

Total
2,126

402,767(4) Information by region
A. Net sales
Fiscal 2022 (January 1 to December 31, 2022)
Japan

Asia

(Millions of yen)
Total

Other
Thailand

266,646

121,041

48,8572,181

389,869

Note: Sales are classified by country/region based on customer location.

Fiscal 2023 (January 1 to December 31, 2023)
Japan

Asia

(Millions of yen)
Total

Other
Thailand

263,157

137,711

55,2191,898

402,767

Note: Sales are classified by country/region based on customer location.

B. Non-current assets
Fiscal 2022 (December 31, 2022)
Japan(Millions of yen)
Total

Asia
Thailand

158,737

27,994

14,315

186,731

Note: Non-current assets are classified by country/region based on asset location and do not include
investments accounted for using the equity method, deferred tax assets, retirement benefit assets orother financial assets.
Fiscal 2023 (December 31, 2023)
Japan(Millions of yen)
Total

Asia
Thailand

166,829

29,113

14,136

195,942

Note: Non-current assets are classified by country/region based on asset location and do not include
investments accounted for using the equity method, deferred tax assets, retirement benefit assets orother financial assets.

30

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

(5) Major customers
Fiscal 2022 (January 1 to December 31, 2022)(Millions of yen)
Net sales

Customer

Related segments

PALTACCORPORATION

101,628

Consumer Products,
Industrial Products

Arata CORPORATION

43,363

Consumer Products,
Industrial Products

Fiscal 2023 (January 1 to December 31, 2023)(Millions of yen)
Net sales

Customer

Related segments

PALTACCORPORATION

98,531

Consumer Products,
Industrial Products

Arata CORPORATION

41,925

Consumer Products,
Industrial Products

Income Taxes(1) Deferred tax assets and deferred tax liabilities
The major components of deferred tax assets and liabilities at each fiscal year-end are as follows.
(Millions of yen)
December 31, 2022

December 31, 2023

Deferred tax assets
Provisions, other current liabilities, etc.

4,435

4,817

Retirement benefit assets and liabilities

7,234

4,808

Excess depreciation

711

671

Accrued enterprise and office taxes

172

250

Appraisal value of inventories

528

884

Unrealized profit on inventories and non-current assets

1,173

1,420

Other

2,182

2,103

16,438

14,957(1,929)(1,862)(3,862)(3,803)(2,891)(3,570)Net gain (loss) on revaluation of financial assets measured atfair value through other comprehensive income(3,625)(4,241)

Right of trademark(2,046)(2,058)

(873)

(909)

(15,227)(16,447)

Total
Deferred tax liabilities
Special depreciation of non-current assets
Valuation difference upon contribution of securities toretirement benefit trust
Temporary differences due to distribution of retained earnings
at overseas affiliates

Other
Total

31

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

The major changes to deferred tax assets and liabilities during each fiscal year are as follows.
Year ended December
31, 2022(Millions of yen)
Year ended December
31, 2023

4,735

1,210

(2,528)(453)

Net gain (loss) on revaluation of financial assets measured atfair value

(367)

(575)

Net gain (loss) on derivatives designated as cash flow hedges

18

(9)

(1,021)(1,710)

373

47

1,210

(1,490)Net deferred tax assets and (liabilities)
Balance at beginning of the year
Deferred income taxes
Deferred taxes related to other comprehensive income items

Remeasurements of defined benefit plans
Other
Balance at end of the year

(2) Unrecognized deferred tax assets
Deductible temporary differences for which deferred tax assets are not recognized are as follows.
(Millions of yen)
December 31, 2022
Deductible temporary differences

December 31, 2023

8,620

8,606

There are no net loss carryforwards or tax credit carryforwards for which deferred tax assets are notrecognized.

(3) Unrecognized deferred tax liabilities
There were no significant taxable temporary differences related to the investments of subsidiaries notrecognized as deferred tax liabilities at December 31, 2022 or December 31, 2023.

(4) Income taxes
Income taxes recognized through profit or loss are as follows.
(Millions of yen)
Year ended December 31,
2022

Year ended December 31,
2023

5,653

5,234

Origination and reversal of temporary differences

2,524

457

Adjustments and reversals of deferred tax assets

5

(4)

8,182

5,687

Current income taxes
Deferred income taxes

Total

The Lion Group assesses its exposure to income taxes arising from tax systems enacted or substantively
enacted to implement the Pillar Two Model Rules published by the Organisation for Economic Co-operation
and Development (OECD). Exposure to income taxes in line with the Pillar Two Model Rules is not material.
32

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

(5) Reconciliation of the statutory tax rate and effective tax rate
The main factors responsible for the difference between the statutory tax rate and the effective income tax
rate are as follows.
Year ended December 31,
2022

Year ended December 31,
2023

30.6%

30.6%

0.2%

0.4%

(1.0%)(0.5%)

0.1%(0.0%)(1.8%)(4.5%)(2.1%)(2.7%)

Foreign tax credits

0.5%(0.1%)

Other(0.4%)

2.2%

26.1%

25.4%

Statutory tax rate
Entertainment expenses and other non-deductible
items
Dividend income and other items not recognizable asincome for tax purposes
Unrecognized deferred tax assets
Differences in tax rates applicable to foreignsubsidiaries
Research and development expenses and otherspecial deductions

Effective tax rate

Note: The Company is subject to taxes mainly comprising income taxes, residence taxes and enterprise taxes.
Calculated based on these taxes, the statutory tax rate for the fiscal years ended December 31, 2022 andDecember 31, 2023 was 30.6%. However, overseas subsidiaries are subject to the income and other taxes of
their respective locations.

Post-Retirement Benefits
The Company and certain consolidated subsidiaries maintain funded and unfunded defined benefit anddefined contribution retirement plans to pay employee post-retirement benefits.

The main retirement benefit plan in which the Company participates is the LION PENSION FUND.
Furthermore, the Company and 9 other companies maintain lump-sum retirement benefit payment plans.
Furthermore, the Company has established a retirement benefit trust.
(1) Defined benefit plans
The amounts related to defined contribution pension plans presented in the Consolidated Statement of
Financial Position are as follows.
(Millions of yen)
December 31, 2022

December 31, 2023

Present value of defined benefit obligation

57,28753,151

Fair value of plan assets(56,003)(59,446)

1,284(6,294)Retirement benefit liabilities

10,431

4,531

Retirement benefit assets(9,147)(10,826)

Net liabilities presented in the Consolidated Statementof Financial Position

1,284(6,294)

Total

33

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

A.

Changes in the present value of retirement benefit obligation(Millions of yen)
Year ended December 31, 2022 Year ended December 31, 2023
Balance of retirement benefit obligation
at beginning of year

64,42857,287

Current service costs

2,188

1,919

Past service costs

―

(989)

Interest expenses

215

577

(678)

34

―

(245)

(3,836)55(5,306)(5,680)276

191

57,28753,151Remeasurements
Experience adjustments
Actuarial differences arising fromchanges in demographic
assumptions
Actuarial differences arising fromchanges in financial assumptions
Retirement benefit payments
Other
Balance of retirement benefit obligation
at end of year

The weighted average duration of the defined benefit obligation was 10.1 years at December 31 2022
and 9.9 years at December 31, 2023.
B.

Changes in the fair value of plan assets(Millions of yen)
Year ended December 31, 2022 Year ended December 31, 2023
Balance of plan assets at beginning ofyearInterest revenue on plan assets

61,51256,003

210

603

(984)

5,423

384

224

(5,202)(2,860)82

52

56,00359,446

Remeasurements
Return on plan assets (excludinginterest revenue)
Employer contributions
Retirement benefit payments
Other
Balance of plan assets at end of year

The Group’s planned contribution to defined benefit plans in the consolidated fiscal year ending
December 31, 2024 is ¥382 million.
C.

Plan asset management policy

The pension assets held by the LION PENSION FUND account for approximately 60% of theGroup’s plan assets. Management of the LION PENSION FUND’s pension assets is aimed atsecuring the necessary total returns over the long term to ensure the payment of the defined benefit
obligation going forward. Specifically, the Group manages such assets by considering factors that
include the expected rates of return, risk and combinations of investment assets to determine an34Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

investment asset mix that will be optimal into the future and then maintaining this mix. Every year,
the asset mix is evaluated, and if the conditions upon which it was formulated have changed, it isrevised as needed. At present, in light of the fund’s highly mature financial status with retirement
benefit payments greatly exceeding revenues from premiums, the fund is managed in a relatively
low-risk manner with an asset mix focused primarily on bonds.
The retirement benefit trusts set up for the defined benefit corporate pension plans operated by
the LION PENSION FUND at the Company and the lump-sum retirement benefit payment plans
maintained by the Company account for approximately 40% of plan assets. The Company’s
strategically held shares account for the majority of the assets in these retirement benefit trusts. The
investment profitability of each such stockholding is recognized as cost of capital and other items,
and the Company’s Board of Directors examines the economic rationality of each such stockholding
on an annual basis.
D.

Components of plan assets
The components of plan assets are as follows.
(Millions of yen)
December 31, 2022
Assets withquoted prices in
active markets

Assets without
quoted prices in
active markets

Assets withquoted prices in
active markets

Assets without
quoted prices in
active markets

Bonds

―

22,336―22,306

Stocks

20,205―25,285

―

Other

9,555

3,907

7,798

4,055

29,76026,24333,08426,361

Total

E.

December 31, 2023

Actuarial assumptions
The main actuarial assumptions used at the period-end are as follows.
December 31, 2022
Discount rate

December 31, 2023
1.0%

1.0%

F. Sensitivity analysis of actuarial assumptions
The changes to the period-end defined benefit obligation if the discount rate were to change as shown
below are as follows.
This analysis assumes that other relevant variables are fixed.
(Millions of yen)
Year ended December 31, 2022

Year ended December 31, 2023

Discount rate up to 0.5%

(2,448)(2,189)

Discount rate down to 0.5%

2,687

2,399

35

Lion Corporation (Code 4912): Consolidated Financial Statements
for the Year Ended December 31, 2023

(2) Defined contribution plans
The amounts recognized as expenses related to defined contribution plans are as follows.
(Millions of yen)
Year ended December 31, 2022

Year ended December 31, 2023

3,062

3,062

Year ended December 31, 2022

Year ended December 31, 2023

21,93914,624

284,763284,406

77.04

51.42

Year ended December 31, 2022

Year ended December 31, 2023

21,93914,624──

21,93914,624

284,763284,406

218

121

290

286

285,272

284,813

76.91

51.35

Expenses related to defined contributionplans

Earnings per Share(1) Basic earnings per share

Profit for the period attributable toowners of the parent (millions of yen)
Average common shares during the period(thousands of shares)
Basic earnings per share (yen)(2) Diluted earnings per share

Profit for the period attributable toowners of the parent (millions of yen)
Adjustments to profit for the period(millions of yen)
Profit for the period used to calculate
diluted earnings per share (millions of yen)
Average common shares during the period(thousands of shares)
Stock options (thousands of shares)
Executive compensation BIP trust(thousands of shares)
Diluted average common shares during theperiod (thousands of shares)
Diluted earnings per share (yen)Important Subsequent Events
Not applicable.

36