May 10, 2022
Lion Corporation

Analyst Q&A (Summary)First Quarter Ended March 31, 2022

Q: Given the first quarter results, could core operating income for the first half of the year
exceed your forecast?
A: We planned for higher core operating income in the first quarter than in the second
quarter and progress thus far has largely been as expected, so we anticipate core
operating income for the first half to be approximately as forecast. From the second
quarter onward, the impact of rising raw material prices will be even greater, and webrought our new core systems online as planned in May. As a result, amortization costs
will increase.
Q: How were sales in each overseas country during the first quarter, and what is theoutlook going forward?
A: Beginning with Southeast Asia, in Thailand, we saw year-on-year real sales growth (atconstant currency excluding exchange rate fluctuations) of 1.5%; however, as economic
recovery progresses, we expect the growth rate to gradually rise. In particular, although
Malaysia's high real sales growth rate in the first quarter was in part a rebound fromthe previous year, we are expecting future growth of close to 10%. In Northeast Asia,growth in China has slowed somewhat, partly due to a change in e-commerce
distributors, but we expect this trend to be transitory and not result in a full year of low
growth. However, the impact of the lockdowns in Shanghai could be a significant
negative factor going forward. South Korea has regained economic normalcy, and webelieve that sales there will be grow as planned.
Q: You said that you expect the impact of the rise in raw material prices to be 1.5 to 2times greater than you had initially assumed at the beginning of the year. Is the impact
expected to be greater in Japan or overseas?
A: We expect a slightly larger impact overseas this year. A high percentage of our raw
materials for detergents, which will be heavily affected, are purchased on a spot basis
by Lion’s overseas affiliates, eliminating delays inherent to handling such operations
through Japan, and the rise in raw material prices will have a direct impact. Although
the impact on Lion’s domestic market will gradually increase, we expect that that onLion’s overseas market will be slightly larger than that on the domestic market for theyear as the impact on the overseas market was already about twice as large as that on
the domestic market in the first quarter.

Q: You mentioned that the rises in shipping prices will mainly be overseas in response torises in raw material costs. Have they already risen and what do you plan to do in thefuture?
A: Some price revisions were made in the detergent field in Southeast Asia in the firstquarter. Moving forward, we will continue to be flexible, taking into consideration thedistribution and sales channel situation as well as our competitive position in the field.
Q: Will you be raising shipping prices of consumer products in Japan? Please tell us about
the price increase environment, including trends at other companies.
A: In the domestic consumer products business, we are reviewing prices for some productsthat are very costly to ship, such as cat litter in the pet supplies business segment. In
principle, we are not raising shipping prices across the board for toiletries. In the major
market segments in which we operate, there has been little talk of price increases atother companies, and even those that have announced price increases are probably
making adjustments and negotiating with their trading partners on a case-by-case basis.
While keeping an eye on trends at other companies, the Company aims to secure profits
by increasing unit prices through a shift to high value-added products, reviewing instore sales promotions, and taking additional cost reduction measures.

Q: If you continue to reduce competition-related expenses in response to rising raw
material prices, will this affect medium-term growth?
A: The purpose of our medium-term management plan is to grow our business andgenerate cash from it, so we will limit our efforts to curb expenses in order to secure
short-term profits to this year only. Although rolling measures may be necessary in thefuture, we will return to our original direction.

Disclaimer
The contents of this document comprise a summary of the views of the Company expressed
during the question and answer portion of a quarterly financial results conference call. This
document does not guarantee the accuracy or completeness of the information contained herein
and is subject to change without notice. Furthermore, forecasts, results projections and otherforward-looking statements are based on certain assumptions judged by the Company to bereasonable in light of information available at the time of preparation and do not constitutepromises or guarantees. Please be advised that a wide range of factors may cause actual results
to differ significantly from the forward-looking statements made herein.