Results briefing for the six
months ended July 31, 2011
September 7, 2011

(Securities code: 7956)
President & CEO Akio OkoshiContents

 Title, Contents

1-2 Jul. 2011 Results

3 - 14

 Jan. 2012 Full Year Business Forecasts 15 - 182

Jul. 2011 Results3Jul. 2010 Results and Jul. 2011 Results (Consolidated)Jul. 2010(¥ millions)

AmountJul. 2011

YoY Change

Forecast

AmountYoY Change% ofForecast

Net sales

27,236103.7%

28,30028,432104.4%

100.5%

Operatingincome

1,715

79.6%

1,800

2,087

121.7%

116.0%

Ordinary
income

1,755

80.5%

1,800

2,064

117.6%

114.7%Net income

1,098

84.0%

1,100

1,214

110.6%

110.4%Net assets

26,317103.4%－

27,270103.6%－Total assets

40,655103.1%－

44,207108.7%－EPS (¥)

54.88

84.0%

54.96

60.69

110.6%

110.4%BPS (¥)

1,290.92

103.3%－

1,336.67

103.5%－4

Statements of Income (Consolidated)Jul. 2010(¥ millions)

AmountJul. 2011% of Total

Amount% of Total YoY Changesummary

Net sales

27,236100.0 %

28,432100.0 % 104.4 %Cost of sales

16,07659.0 %

16,88059.4 % 105.0 %Gross Profit

11,16041.0 %

11,55240.6 % 103.5 %Selling, General and
Administrative Expenses

9,444

34.7 %

9,464

33.3 % 100.2 % Personnel: +¥192m■ Main SG&A changes

Operating income

1,715

6.3 %

2,087

7.3 % 121.7 %Total Other Income andExpenses

39

0.1 %(22)0.0 %Ordinary income

1,755

6.4 %

2,064

7.3 % 117.6 %Total Extraordinary
Income and Loss

(91)(0.3) %(126)(0.5) %

Less: Minority Interest in Net Incomeof Consolidated Subsidiaries

49

0.2 %

61

1,098

4.0 %

1,214Net income

Selling: -¥115mAdvertisement: -¥68m――■Main extraordinary losses
Disaster-related: -¥113m

0.2 % 125.7 %4.3 %110.6 %

5Results by Segment (Consolidated)Jul. 2010

Jul. 2011(¥ millions)
Amount% of
Total

Gross
MarginSegment
IncomeAmount

% of
Total

YoY
ChangeGross
MarginSegment
IncomeConsolidated
net sales

27,236100.0%

41.0%

1,715

28,432100.0%

104.4%

40.6%

2,087

Domestic Baby andMother Care
Business

11,904

43.7%

44.9%

1,724

12,14242.7%

102.0%

45.7%

1,805

Child-rearing
Support Services

2,683

9.9%

12.6%

642,946

10.4%

109.8%

11.2%

59

Health Care andNursing Care
Business

3,266

12.0%

28.4%

31

3,303

11.6%

101.2%

29.9%

234

Overseas Business

8,852

32.5%

50.4%

1,490

9,534

33.5%

107.7%

48.3%

1,559

528

1.9%

16.9%

74

505

1.8%

95.6%

15.2%

57

Other

※Jul. 2010 figures have been calculated by substituting new report segment results for this quarter, and are for your reference※Segment income in consolidated amount (all unclassifiable operating expenses)
have been adjusted and posted as operating income in the quarterly consolidated statements of income6Overseas Sales by Region(¥ millions)

China
Other Asia (except China)
North America
Middle East
Other869

4,014

Jul.2011

1,857

Local currency basis: +14.2%

1,958

808

Forex impact
652

9,509

Local currency basis: +11.4%

672

3,755

Jul.2010

0

2,000

1,671

4,000

1,957

6,000

8,825

768

8,000

10,000※ Currency rates (July 2011): US$1 = ¥82.00; 1 yuan = ¥12.53; (July 2010): US$1 = ¥91.35; 1 yuan = ¥13.38

7Key Priorities for Year to Jan. 2012
■ Domestic Baby and Mother Care Business- Establish and extend large merchandise business and promote the categoryof women’s care
- Ensure growth of IT business, establish a Mamas & Papas business■ Child-rearing Support Services- Realize further improvements in child-rearing quality;
continue steady expansion of business■ Health Care and Nursing Care Business- Restructure business operation system- Improve merchandise competitiveness specializing in priority categories- Take action to develop new channels■ Overseas Business- China: Strengthen alliances with current agencies; foster new agencies
Begin operations at new Changzhou Factory; strengthen development
and in-house production systems- Europe and America: Extend merchandise category centered on the mOmma brand- Start tapping new markets

8Domestic Baby and Mother Care Business / Child-rearing Support Services■Domestic Baby and Mother Care Business[New Products][Women’s care][Large merchandise business]

MOGUTTOYASAI, MAGUMAGU Baby/Spout, Range de MUSHI-PAN,
MUSHI- KURURIN OHEYANIOKU Type, Other
Body Massage Cream, Body HIKISHIME Gel
SALVAJE■Child-rearing Support Services[New contract of entrustment]

Authorized nursery school (1)Nursery facilities within business establishments (3) (April)
Main Products to be Launched
During Second Half of the Year

Market Share by2011年7月シェアProduct (July 2011)

乳首びん
哺洗
乳剤
びん
消毒母乳パッドマ
グマベグ
ビーフードス
キン
ケおア
しりナッ
プ
肌着洗
い哺

乳

哺

乳

びん

100.0%
90.0%
80.0%
70.0%
60.0%
50.0%
40.0%
30.0%
20.0%
10.0%
0.0%

※Source: POS Nationwide Drugstore Growth Estimates, INTAGE Inc.
(monthly data)

Skin thermometer H20
Chibi-on Touch(Takes temperature by contact
with forehead for just a second)

Baby’s First
Mask

ONEGAI ORIGO(Company's first Foodfor Specified HealthUses)

9Health Care and Nursing Care Business■Health Care and Nursing Care Business[Habinurse][Recoup]

Focus on Pigeon Tahira (agent for distribution to healthcare facilities)
Walking aid products: Wheelchair sales are strong
New products: YAWARAKAI KAIJO Spoon, HAGUKI NI YASASHII Brush,
FUSSOIRI HAMIGAKI Gel
New products: NUNO Type KYUSYU PadExpanding sales through catalog mail orders and TV shopping

Wheelchair with automatic brakes

Full reclining chair

The brakes are applied automaticallywhen the occupant tries to stand,and released when he/she sits down

New products, Habinurse and Recoup

10Overseas Business■Overseas Businesses
Major overseas expansion with products sold in the local currency in overseas markets including China and North America[China]Efforts to create/re-establish distribution system since the previous period proceeding smoothly
Focusing on sales to baby-care product chains
Increasing the number of stores that handle volume sales
New products selling strongly
Production subsidiary in Changzhou, Jiangsu Province proceeding smoothly

Our awareness program related to caring for breastfed infants conducted jointly with our Sanitation
department has drawn the participation of over 1,100 hospitals.
[Europe and America]

Acquisition of brands aimed at expanding merchandise categories:“mOmma” (January) and “earth friendly baby”(July)[New markets] India: Working on brand development by setting up “Pigeon Corners” in stores
Malaysia: Major expansion through the acquisition of local sales agencies as subsidiaries

Breastfed Infant Care Awareness
Program in china

India: Pigeon Corner11

Reference: Balance Sheet Highlights (Consolidated)
Jan. 11AmountAmountJul. 11(¥ millions)YoY Change(Amount)

YoY Change(%)

Cash and time deposit

6,827

6,895+ 68

101.0 %

Notes and accounts
receivable

9,874

10,615+741

107.5 %

Inventories

5,798

6,930

+1,132119.5 %

Notes and accounts payable

3,984

4,808+823

120.7 %

Borrowings

4,873

4,876+3

100.1 %Net assets

27,04427,270+ 226

100.8 %

Total assets

42,684

44,207+1,522

103.6 %

Equity ratio

62.2%

60.5%

－- 1.7 pt■ Notes and accounts receivable:■ Inventories:

Increase due to business expansion

12

Reference: Cash Flows(¥ millions)
(751)
446

(1,041)

1,869(1,075)

6,905(7)6,827(264)

6,895(105) 5,907
Acquisition of PPE: ¥(749) m(Jul. 10: ¥(1,015) m)

Decrease (increase) in trade receivables: ¥(546）m(Jul. 10: ¥1,274 m)
Income before income taxes: ¥1,938 m(Jul. 10: ¥1,664 m)

Loan income/repayments: ¥(117) m(Jul. 10: ¥422 m)
Payment of cash dividends: ¥(878) m(Jul. 10: ¥(639) m)

Jul. 2010
Balance at Operating
Beginning Activities

6,905446

Jul. 2011

Investing
Activities

Financing Translation/Valu Balance
Activities ation Gain (Loss) at End(1,075)

(264)

(105)

5,907

Balance at Operating
Beginning Activities

6,827

1,869

Investing
Activities(751)

Financing Translation/Valu
Activities ation Gain (Loss)(1,041)(7)

Balanceat End6,895

13

Reference: Investment-Related Indicators(Consolidated)(¥ millions)Jan. 2011

Jan. 2012

Interim(Result)

Full Year(Result)

Interim(Result)

Full Year(Plan)

Capital expenditure ※1954

2,938

1,085

1,594

Depreciation(tangible fixed assets)

650

1,364722

1,548

Research and development ※2682

1,359755

1,558※1 Refers to purchase of tangible fixed assets, excluding construction in progress※2 Refers to total R&D expenditures, including personnel-related

14

Jan. 2012 Full Year Business Forecasts

15

Jan. 2011 Results and Jan. 2012 Forecast (Consolidated)
Jan. 2011(¥ millions)

AmountJan. 2012 (Forecast)% of Total

YoY Change

Amount% of Total

YoY Change

Net sales

57,061100.0%

106.8%

61,100100.0%

107.1%

Operatingincome

4,546

8.0%

98.8%

5,000

8.2%

110.0%

Ordinary
income

4,435

7.8%

96.2%

4,9508.1%

111.6%Net income

2,928

5.1%

103.1%

3,300

5.4%

112.7%Net assets

27,044－103.0%

28,723－106.2%

Total assets

42,684－108.1%

44,960－105.3%EPS(¥)

146.31－103.1%

164.88－112.7%BPS (¥)

1,325.71－

102.9%

1,406.65－

106.1%

ROA

10.8%

－－

11.3%

－－

ROE

11.2%

－

－

12.1%

－－

※ ROA = Ordinary income ÷ Total assets; ROE = Net income ÷ Equity (in both cases, denominators are averaged between beginning and year-end figures)

16Results and Forecast by Segment (Consolidated)
Jan. 2011

Jan. 2012 (Forecast)(¥ millions)
Amount% of
Total

Gross
MarginSegment
IncomeAmount% of
Total

YoY
ChangeGross
MarginSegment
IncomeConsolidated
net sales

57,061100.0%

40.8%

4,546

61,100100.0%

107.1%

40.8%

5,000

Domestic Baby andMother Care
Business

24,145

42.3%

45.3%

3,601

24,61640.3%

102.0%

46.0%

3,859

Child-rearing
Support Services

5,455

9.6%

12.2%

119

5,700

9.3%

104.5%

11.8%

125

Health Care andNursing Care
Business

6,504

11.4%

28.7%

129

6,909

11.3%

106.2%

28.3%

248

Overseas Business

19,907

34.9%

48.6%

3,762

22,802

37.3%

114.5%

47.8%

4,083

Other

1,049

1.8%

14.9%

125

1,071

1.8%

102.1%

10.1%

100※Jan. 2011 figures have been calculated by substituting new report segment results for this term-end, and are for your reference※Segment income in consolidated amount (all unclassifiable operating expenses)
have been adjusted and posted as operating income in the quarterly consolidated statements of income17Shareholder Return[Shareholder return indicators under Fourth Medium-TermBusiness Plan]
・ Adopt flexible approach to upgrading shareholder return(incl. through share buybacks), targeting continued total
shareholder return ratio of 50% or higher
Dividend Status

Dividend per share(yen)Payout ratio

Jan. 2009 (Result)Jan. 2010 (Result)Jan. 2011 (Result)Jan. 2012 (Forecast)InterimYear-EndInterimYear-EndInterimYear-EndInterimYear-End

2332

32

32

44

44

44

44

38.5%

45.1%

60.1%

53.4%

18

Corporate Overview
PIGEON CORPORATIONHead office
4-4, Nihonbashi-Hisamatsucho, Chuo-ku,Tokyo103-8480, Japan
Tel: +81-3-3661-4200+81-3-3661-4188 (Investor Relations)Fax:+81-3-3661-4320
E-mail address
InvestorRelations＠pigeon.com

URL http://www.pigeon.co.jp /http://english.pigeon.co.jp/
In this document, statements other than historical facts related to plans, forecasts,
and strategies are based on information available at the time of writing.
The Corporation cannot provide guarantees or commitments for these forwardlooking statements.
Due to various factors, actual results may differ significantly from those anticipatedin this document.

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