Fiscal Year to January 2012
Summary of Results
March 7, 2012

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

 Title, Contents

1– 2

 Jan. 2012 Results

3 – 14

 Jan. 2013 Forecast

15 – 192

Jan. 2012 Results

3

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

AmountJan. 2012

YoY Change

Forecast

AmountYoY Change% of Revised
Forecast

Net sales

57,061106.8%

61,10059,145103.7%

96.8%

Operating income

4,546

98.8%

5,000

5,042

110.9%

100.9%

Ordinary income

4,435

96.2%

4,950

4,917

110.9%

99.3%

Net income

2,928

103.1%

3,300

3,183

108.7%

96.5%

Net assets

27,044103.0%

28,72327,935103.3%

97.3%

Total assets

42,684108.1%

44,96043,772102.5%

97.4%

EPS(¥)

146.31103.1%

164.88159.05108.7%

96.5%

BPS (¥)

1,325.71

102.9%

1,406.65

1,370.46

103.4%

97.4%

ROA

10.8%

－

11.3%

11.4%

－－

ROE

11.2%

－

12.1%

11.8%

－－

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

4Statements of Income (Consolidated)
Jan. 2011(¥ millions)

AmountJan. 2012% of Total

Amount% of Total

YoY Change

Summary

Net sales

57,061100.0 %

59,145100.0 %

103.7 %

Cost of sales

33,78059.2 %

34,82658.9 %

103.1 %

Gross profit

23,28140.8 %

24,31941.1 %

104.5 %

Selling, general andadministrative expenses

18,73432.8 %

19,276

32.6 %

102.9 % Personal expenses

Operating income

4,546

8.0 %

5,042

8.5 %

110.9 %

Total other income andexpenses(111)(0.2) %

(125)(0.2) %―Ordinary income4,435

7.8 %

4,917

8.3 %

110.9 %

Total extraordinary income
and loss(65)(0.1) %(193)(0.3) %―

Less: minority interest in net income ofconsolidated subsidiaries

88

0.2 %

87

0.1 %

99.3 %

2,928

5.1 %

3,183

5.4 %

108.7 %Net income■ Main SG&A changes＋¥453mLoss on disposal of inventories＋¥246mAdvertising expenses¥(102)m■Main change of extraordinary items
Loss on Great East Japan Earthquake¥(124)m5

Results by Segment (Consolidated)
Jan. 2011

Jan. 2012(¥ millions)
Amount% ofTotal

GrossMarginSegment
IncomeAmount% of Total

YoY
ChangeGross
MarginSegment
IncomeConsolidated
net sales

57,061100.0%

40.8%

4,546

59,145100.0%

103.7%

41.1%

5,042

Domestic Baby andMother Care Business

24,145

42.3%

45.2%

3,611

24,047

40.7%

99.6%

46.5%

3,677

Child-rearing Support
Services

5,455

9.6%

12.2%

117

5,990

10.1%

109.8%

11.5%

152

Health Care andNursing Care Business

6,503

11.4%

28.6%

111

6,469

10.9%

99.5%

29.3%

350

Overseas Business

19,907

34.9%

48.7%

3,745

21,58436.5%

108.4%

48.1%

3,909Other

1,050

1.8%

15.0%

135

1,052

1.8%

100.2%

15.6%

138※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)
Chi naOther A s i a ( ex cept Chi na ）N orth A meri ca

Mi ddl e E a s t

Local currency basis: + 117.5%

1,532

10,167

J a n.2012

Other

4,221

Forex impact
1,393

3,842

Local currency basis: + 109.7%

21,542

1,776

1,411
9,090

J a n.2011

3,908

19,854

3,855
1,588

0

5,000

10,00015,00020,00025,000※ Average rates (2011): US$1 = ¥79.79; 1 yuan = ¥12.34; (2010): US$1 = ¥87.79; 1 yuan = ¥12.96

7

Key Priorities for Year to Jan. 2012
■ Domestic Baby and Mother Care Business- Establish and extend large merchandise business and promote the category of 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 BusinessIn spite of the earthquake, the Group maintained the business results at
about the same level as they were in the previous year.
[New products for babies released during the second half]Baby Laundry, CHIBION Touch, HAJIMETE no Mask,
Baby Rhythm Breast Pump-Electric Premium Model, Other[Women’s care]
ONEGAI Origo, Dental Paste (Medicated)[Large merchandise business]
SALVAJE[Direct communication]
28 maternity events held with approximately 1,900 people participating■Child-rearing Support Services[New contract of entrustment]

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

In spite of the earthquake, steadily continuing business expansion and improving thequality of the products.
Authorized nursery school (1)Nursery facilities within business establishments (5) → A total of 191 facilities

Market Share by Product (Jan. 2012)

Main new products released during spring of2012 (first half of the year)

Bubble bath series forchildren over a year
and a half
※Source: POS Nationwide Drugstore Growth Estimates, INTAGE Inc. (monthly data)

Microwave
cake set forchildren over
one yearTrainingchopsticks9Health Care and Nursing Care Business■Health Care and Nursing Care BusinessHabinurse

RecoupMaintaining business results at about the same level they were in the previousyear, at the same time greatly improving profitability.

・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 Pad・Expanding sales through catalog mail orders and TV shopping

Products in the wheelchair category New products, Habinurse and Recoup

Relocation of Pigeon Manaka main
headquarters and launch of day services

10Overseas Business■Overseas Businesses

China

Continued expansion on the local currency base in various regions overseas such as China,
North America, etc.

・Creation and reconstruction of the distribution system is advancing satisfactorily, and cooperative relations
with agencies are favorable
・Sales of new products are also progressing favorably
・Focusing on sales to baby-care product chains
・Increasing the number of stores that handle volume sales
・The quantity of output and the number of items manufactured by the Group‘s manufacturing subsidiary inZhangzhou, Jiangsu has expanded, and the company is operating satisfactorily
・ Our awareness program related to caring for breastfed infants conducted jointly with our Sanitation department arecontinually implemented

Europe and America ・Promoting the development of such acquired brands as "mOmma", "earth friendly baby", etc., to increase the numberof product categories in the future

New markets

・India: establishment of the distribution system, increase in the number of shops selling the Group’s products, andinstallation of Pigeon Corners
・Malaysia: major expansion through the acquisition of local sales agencies as subsidiaries

PIGEON INDUSTRIES (CHANGZHOU)CO.,LTD. mOmma brand baby bottle

Press release of Bonyu Jikkan (Singapore)11

Reference: Balance Sheet Highlights (Consolidated)
Jan 11
AmountAmountJan 12(¥ millions)YoY Change(Amount)

YoY Change(%)

Cash and deposits

6,827

7,293＋ 465

106.8 %

Notes and accounts receivable

9,874

9,993＋ 119

101.2 %

Inventories

5,798

6,926＋ 1,127

119.5 %

Notes and accounts payable

3,984

3,758( 226)

94.3 %

Borrowings

4,873

4,898＋ 25100.5 %Net assets

27,04427,935＋ 891

103.3 %

Total assets

42,684

43,772＋ 1,087

102.5 %

Equity ratio

62.2%

62.7%

－＋ 0.5pt■ Notes and accounts receivable:■ Inventories:

Increase due to business expansion

12

Reference: Cash Flows(¥ millions)

4,212 (1,871)
3,206 (3,949)(1,776)886

6,905(220)6,827(98)6,827

Acquisition of PPE: ¥(1,416)m
(Jan 11: ¥(2,710)m)

Income before income taxes: ¥4,723m(Jan 11: ¥4,369m)
Change in receivables:¥(93)m(Jan 11: ¥ (1,470) m)

Jan. 20117,293

Loan income/repayments:¥38 m(Jan. 11: ¥2,464 m)
Payment of cash dividends: ¥(1,758) m(Jan. 11: ¥(1,518) m)

Jan. 2012

Balance at
Beginning

Operating
Activities

Investing
Activities

Financing
Activities

Translation/Valuation Gain (Loss)

Balanceat EndBalance at
Beginning

Operating
Activities

Investing
Activities

Financing
Activities

Translation/Valuation Gain (Loss)

Balanceat End

6,905

3,206

(3,949)

886

(220)

6,827

6,827

4,212

(1,871)(1,776)

(98)

7,293

13

Reference: Investment-Related Indicators(Consolidated)(¥ millions)[Reference]
Capital expenditure indicators

Jan. 2011

Jan. 2012

Interim(Result)

Full Year(Result)Interim(Result)

Full Year(Plan)

Capital expenditure ※1954

2,938

1,085

1,672

Depreciation(tangible fixed assets)

650

1,364

722

1,381

Research and development ※2

682

1,359

755

1,497

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

14

Jan. 2013 Forecasts

15

Jan. 2012 Results and Jan. 2013 Forecast (Consolidated)
Jan. 2012(¥ millions)

AmountJan. 2013 (Forecast)% of Total

YoY Change

Amount% of Total

YoY Change

Net sales

59,145100.0%

103.7%

64,300100.0%

108.7%

Operating income

5,042

8.5%

110.9%

5,650

8.8%

112.0%

Ordinary income

4,917

8.3%

110.9%

5,550

8.6%

112.9%Net income

3,183

5.4%

108.7%

3,300

5.1%

103.7%Net assets

27,935－103.3%

29,434－105.4%

Total assets

43,772－102.5%

47,904－109.4%EPS(¥)

159.05－108.7%

164.88－103.7%BPS (¥)

1,370.46－

103.4%

1,442.33－

105.2%

ROA

11.4%

－－

12.1%

－－

ROE

11.8%

－－

11.7%

－－

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

16

Sales by Business Segment (Consolidated)
Jan. 2012

Jan. 2013 (Forecast)(¥ millions)
Amount% ofTotal

Gross
MarginSegment
IncomeAmount% of Total

YoY
ChangeGross
MarginSegment
IncomeConsolidated
net sales

59,145100.0%

41.1%

5,042

64,300100.0%

108.7%

41.4%

5,650

Domestic Baby andMother Care Business

24,047

40.7%

46.5%

3,677

24,89538.7%

103.5%

45.6%

3,780

Child-rearing Support
Services

5,990

10.1%

11.5%

152

6,150

9.6%

102.7%

11.8%

212

Health Care andNursing Care Business

6,469

10.9%

29.3%

350

7,014

10.9%

108.4%

30.5%

314

Overseas Business

21,584

36.5%

48.1%

3,909

25,232

39.2%

116.9%

48.8%

4,822

Other

1,052

1.8%

15.6%

138

1,007

1.6%

95.7%

12.0%

88

※Segment income in consolidated amount (all unclassifiable operating expenses)
have been adjusted and posted as operating income in the quarterly consolidated statements of income※Assumed exchange rates of Overseas Business : US$1 = ¥78.00 ; 1 yuan = ¥12.30

17

Key Priorities for Year to Jan. 2013
■ Domestic Baby and Mother Care Business- Expanding into new areas of business such as the large merchandise business- Growth of the IT business represented by Mamas & Papas■ Child-rearing Support Services- Realize further improvements in child-rearing quality;
continue steady expansion of business■ Health Care and Nursing Care Business- Reinforce sales activities centering on reconstruction of business organization andfacilities route- Improve the competitive power of the products focusing on those in important
categories and make an effort in sales-promotion activities- Establishment of new channels■ Overseas Business- China: Achieve further growth by reinforcement of the brand name and measures inthe growing business categories
Reinforce sales of new products and items manufactured at the new factoryin Zhangzhou- Europe and America: Steady growth of the newly developed brands (mOmma, etc.)- Market expansion: Aim at increasing the market share in India, Malaysia, South
Korea, etc.

18

Shareholder Return and Investment-Related Indicators
・ We will bolster shareholder return in a flexible manner, including through share buybacks, targeting a total
shareholder return ratio of 50% or higher by Jan. 2011.
Dividend Status

Dividend per shareJan. 2010(¥)

Jan. 2011

Jan. 2012

Jan. 2013

Interim(Result)Year-End(Result)Interim(Result)Year-End(Result)Interim(Result)Year-End(Plan)

Interim(Plan)

Year-End(Plan)

32

32

44

44

44

44

44

44

45.1%

Payout ratio

60.1%

55.3%

53.4%

Jan. 2011

Jan. 2012

Jan. 2013[Reference] Capital expenditure indicators
Jan. 2010
Interim(Result)Year-End(Result)Interim(Result)Year-End(Result)Interim(Result)Year-End(Result)Year-End(Plan)

Capital expenditure ※1

613

1,558

954

2,938

1,085

1,672

2,006

Depreciation(tangible fixed assets)

547

1,180

650

1,364722

1,381

1,826

※1 Refers to purchase of tangible fixed assets, excluding construction in progress

19

Corporate Overview
PIGEON CORPORATIONHead office
4-4, Nihonbashi-Hisamatsucho, Chuo-ku, Tokyo
103-8480, Japan
Tel: +81-3-3661-4200+81-3-3661-4188 (Investor Relations)Fax:+81-3-3661-4320
E-mail address
InvestorRelations＠pigeon.co.jp

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

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