August 7, 2023
Lion Corporation

Analyst Q&A (Summary)First Half Ended June 30, 2023
Performance in Key Segments
Q: In Consumer Products, net sales seem to have increased significantly in the second quarter (Aprilto June) compared with the first (January to March). Was this due to market factors? What is yourforecast for the second half of the year?
A: We believe it was due to both market factors and the impact of new products. Compared with thefirst quarter, markets improved in the second quarter, and on top of this, newly launched highvalue-added products in oral care and fabric care boosted sales.
In the second half of the year, we expect fabric care to drive sales. In addition to launching
NANOX one, we will accelerate sales growth of SOFLAN Airis, launched in the first half of theyear, aiming to meet our initial targets for the year.

Q: Consumer Products recorded a core operating loss of ¥300 million in the second quarter. Was thiswithin the range of your assumptions?
A: Yes, the core operating loss in the second quarter was actually slimmer than expected. Factors
behind the loss included continued high raw material prices and increases in costs, such as new
product promotional expenses and head office relocation costs. However, partly by curbing specialsales, we were able to keep the loss narrower than initially assumed.

Q: In the first half of the year, the ratio of core operating income to net sales in the Overseas Business
was about 5%. How are you approaching this going forward?
A: In the Overseas Business, we are focusing mainly on business expansion and securing volume interms of sales value while maintaining profitability. Declining raw material prices have caused
competition to heat up in some countries, but we will address this with a range of measures, suchas nurturing high-end products.

Q: Core operating income in the first half of the year was ¥800 million higher than your forecast. Am
I correct in seeing this as the result of achieving exactly the sales mix targeted in your strategy?
A: In Japan, we successfully secured profitability, and overseas we were able to expand sales while
increasing the share of sales accounted for by the personal care field, so yes, we think that thisresult is aligned with our strategy. In Japan, we will advance the targeted allocation of competitionrelated expenses, mainly for new products, to bring the sales mix even more in line with our strategy.

Price Increases
Q: Could you break down the approximately ¥4 billion effect of price increases in the first half of theyear? Also, do you think there could be further price increases in the second half or in fiscal 2024?
Ａ: Of that ¥4 billion, about ¥2.7 billion came from wholesale price increases, while about ¥1.3 billion
was from streamlining sales promotions, and it was mostly the result of measures in Japan. In terms
of product types, the wholesale price increases extended to approximately 260 SKU, mainly
detergents for institutional use and pet supplies.
In the latter half of the year, we expect a positive effect of about ¥1 billion from priceincreases and sales promotion streamlining.

Q: You are forecasting greater profit in the second half of the year than the first, but also that priceincreases will exert a smaller effect. Why is that?
Ａ: We really ramped up price increases in the second half of last year. Since much of the effects ofthese increases were already felt then, the year-on-year effect of price increases will be smaller inthe second half of this year than in the first. We aim to improve profit by raising the portion of sales
accounted for by high-value-added products, such as NANOX one, which will be launched in
September. Also, given our market position, we are prioritizing the streamlining of sales
promotions for low-end products over wholesale price increases.

Other
Q: Please tell us about sales from inbound visitors to Japan in the first half and your forecast for suchsales for the full year.
Ａ: Sales from inbound visitors in the first half of the year came to about ¥2.8 billion, about 1.8 times
the level seen in the same period of the previous fiscal year.
If tourism from China ramps up, we think that it will have a positive effect, but we havebeen restrained in factoring this effect into our plans. For the full year, we assume these sales will
be mostly around the same level as last year, but they could end up somewhat higher.

Disclaimer
The contents of this document comprise a summary of the views of the Company expressed during thequestion and answer portion of a quarterly financial results presentation. 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 other forward-looking statements are based on certain
assumptions judged by the Company to be reasonable in light of information available at the time of
preparation and do not constitute promises 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.