Financial Results of Q1 / Dec. 2024
( YTD 3 months - January to March)(Securities Code: 7956)

May 14, 2024

Q1 / December 2024
Q1 Financial Results ( YTD 3 months sales )P. 3

Q1 Review by Business Segment

P. 6

Sales by Region, EC ratio in Key Markets

P. 10Agenda

FY 2024 Q1 Results - Consolidated P&L (YTD 3 months)
Net sales and gross profit slightly increased YoY due to the impact of FX rates.
Operating income decreased due to higher personnel expenses and aggressive use of sales & marketing expenses
in mainland China and Lansinoh business.
Unit: Million JPY

Q1 / Dec. 2023 YTD
ActualQ1 / Dec. 2024 YTD% of TotalーActual% of Totalー

YoY Change

Net Sales

23,613

Cost of Sales

12,122

51.3%

12,110

51.0%

99.9%

Gross Profit

11,49048.7%

11,63949.0%

101.3%

SG&A Expenses

8,086

34.2%

8,941

37.6%

110.6%

Operating Income

3,404

14.4%

2,697

11.4%

79.2%

Ordinary Income

3,791

16.1%

2,963

12.5%

78.2%

Net Income Attributableto Owners of Parent

2,438

10.3%

1,906

8.0%

78.2%[Currency Rates] 2024 Q1 Results: US$1 = JPY 148.43
2023 Q1 Results: US$1 = JPY 132.39

CNY 1 = JPY 20.65
CNY 1 = JPY 19.33©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

23,749100.6%

3FY 2024 Q1 Results - By Business Segment (YTD 3 months)
Lansinoh business increased sales and income. China business showed steady recovery from the Q4 of 2023.
Unit: Million JPY

Q1 / Dec. 2023 YTD Results
Segment
ProfitNet Sales% of Total

YoY Change

48.7%

3,404

23,749ー100.6%

49.0%

2,697

37.6%33.9%

439

8,734

36.8%

98.4%

33.0%

523

8,600

36.4%

54.1%

2,669

8,356

35.2%

97.2%

55.8%

2,324

Singapore Business

3,491

14.8%

38.9%

606

3,115

13.1%

89.2%

39.8%

353

Lansinoh Business

4,538

19.2%

52.8%

347

5,068

21.3%

111.7%

57.8%

432(8.0%)ーー(6.4%)ーーー

Net Sales% of Total

Consolidated
Net Sales

23,613ーJapan Business

8,873

China BusinessElimination of intersegment transactions▲1,890Gross
MarginQ1 / Dec. 2024 YTD Results▲1,525Gross
MarginSegment
Profit[Reference] Breakdown of Japan BusinessQ1 / Dec. 2023 YTD Results
Unit: Million JPY

Baby Care
Childcare Services
Health & Elder CareNet Sales

6,176% of Total

895

1,146

©Pigeon Corporation All Rights Reserved. │ Strictly Confidentialーーー

GrossMargin

39.8%

15.9%

28.8%

Q1 / Dec. 2024 YTD Results

Segment
Profit579
5660

Net Sales

6,287
880

1,174% of Totalーーー

YoY Change

101.8%
98.3%

102.4%

Gross
Margin

37.8%

11.2%

31.0%

Segment
Profit55013934

FY 2024 Q1 Results - Change in Operating Income (YoY)
Gross profit increased by 140 million yen YoY due to increased revenue and improved gross margin.
SG&A expenses increased by 850 million yen YoY (about half the effect of FX rates). The increase in SG&A expenses wasdue to higher personnel expenses and aggressive sales & marketing spend.
Operating income decreased by 710 million yen YoY.
(Unit: 100M. JPY)

34.0

+0.6+0.8(3.7)■ Operating Income Increase

Q1 2023
Operatingincome

Increased
Gross Profit byhigher sales©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

Impact ofGross Margin
improvement

(2.9)

(1.2)

(0.7)

26.9

■ Decrease

Marketingthe previousyear
Personnel
relatedOperating income
expenses
expenses

Travel andLogistics
expenses

Otherexpenses

Q1 2024
Operatingincome5

FY 2024 Q1 Results - Review by Business Segment
Strategy for 2024: Continue to improve profitability through new value creationby leveraging our strengths and uniqueness
Baby care business performed well in existing and new areas, but overall sales in Japan business declined
due to weak overseas demand.

Japanbusiness• While Baby Care sales increased 2% YoY, overseas demand such as exports and cross-border EC was weak due to theimpact of ALPS treated water.
• Sales of nursing bottles/nipples increased from the previous year. New product “My Bonyu-Jikkan” bottle launched lastyear performed well, including capturing demand for gift items.
• New product “Moisture mist milky lotion” was launched in February. Strengthened product exposure by developing
attractive in-store displays at major offline channels.
• Sales of the electric nasal aspirator “SHUPOT” were strong. The “Baby care appliances” is growing as a new area ofbusiness in Japan.
• Gross margin for Baby Care decreased by 2.0 pt. YoY mainly due to higher COGS affected by yen depreciation.
• Health & Elder Care business launched a new product, “Medicated Oral Care Gel Plus” in February.
• Inbound demand is sluggish despite an upward trend in the number of foreign visitors to Japan.

©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

6

FY 2024 Q1 Results - Review by Business Segment
Strategy for 2024: Thoroughly invest in growth areas with top priority on sales recovery
in mainland China. Build a solid position as a #1 brand to achieve sustainable growth.
Despite lower sales and profits YoY, mainland sales steadily recovered from the sharp decline in Q4 ofprevious year due to the impact of ALPS treated water.

Chinabusiness• Mainland China sales* (CNY) ended -10% YoY, but in line with internal plans.
• Sales of baby skincare struggled due to ongoing impact of ALPS treated water, but sales of nursing bottles/nipples
increased by 0.4% YoY. Market share of bottles/nipples recovered to the level before the release of ALPS treated water.
• New product launched in Q1, “kids sports straw bottle 500ml”.
• Various marketing activities resumed sequentially from Q1. Steady increase in GMV through enhanced brand exposureand communication mainly on digital platforms.
• Gross margin (JPY) of China business improved by 1.7 pt. YoY due to an increase in the sales composition of high-margin
nursing bottles/nipples.
• Sell-out -3% YoY, EC +5%, Offline -19%. Tiktok and PDD continue to grow. EC ratio is 73%.

*Sales: Sell-in in local currency©Pigeon Corporation All Rights Reserved. │ Strictly Confidential7

FY 2024 Q1 Results - Review by Business Segment
Strategy for 2024: With normalization of inventory levels, focus on bottles/nipples
and skincare to get back on track for growth.
Sales and income down due to ongoing shipment adjustments from the previous year, but distribution
inventory normalization in major countries is almost complete.

Singaporebusiness

Sales* in India +7% YoY, Malaysia +22%, Indonesia -32%, Middle East -49%.
Sellout grew YoY in India, South Africa and Thailand driven by nursing bottles/nipples.
Distribution inventory normalization in major markets is almost complete. Some markets done by the end of 1H.
Continued to strengthen sales of core products (bottles/nipples and Skincare). Pigeon's nursing bottles and breastfeedingproducts won “Platinum” prize in the Supermom Brand Awards 2024. Natural Botanical Baby skincare won “Product of theYear” in Singapore.
• Gross margin (JPY) of Singapore business improved by 0.9 pt. YoY, partly due to sales increase of factories and the effectof FX rates.
••••*Sales: Sell-in in local currency©Pigeon Corporation All Rights Reserved. │ Strictly Confidential8

FY 2024 Q1 Results - Review by Business Segment
Strategy for 2024: Stable growth in existing areas and expansion of productcategories. Continued investment in growth for brand expansion
Sales and income increased due to the effect of FX rates and lower marine transportation costs.

LansinohBusiness• Lansinoh Group sales* (USD) were -0.4% YoY. Although sales in North America declined 0.7% due to a reactionary
decline from special demand seen in previous year, sales in Europe (Germany, UK, and France) grew mainly innipple creams and postpartum & recovery care.
• New hands-free breast pump “Discreet Duo” launched in February (mainly for the DME channel)• Sales of postpartum & recovery care products were strong in North America as well as in the European market.
• Gross margin (JPY) of Lansinoh business improved by 5.0 pt. YoY due to an improved product mix and lower ocean
freight costs (COGS factor), but U.S. domestic sales distribution costs (SG&A factor) remained high.

*Sales: Sell-in in local currency©Pigeon Corporation All Rights Reserved. │ Strictly Confidential9FY 2024 Q1 Results - Pigeon Sales* by Region (YoY)

CHN
UAE-49%VNM(Middle East)

IND-10%+7%-62%
MYS-5%JPN+2%(Baby Care)

+22%
SGP

©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

KOR-10%IDN

AUS

-32%

-35%

*Sell-In (Local Currency)

10

FY 2024 Q1 Results - Lansinoh Sales* by Region (YoY)
GBR
CAN

USA

-25%-1%©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

DEU

BENELUX+19%+13% TUR

+8%

CHN

+78%

-23%

Sell-In (Local Currency)11

FY 2024 Q1 Results - EC Sales Ratio in Key Markets[E-commerce sales ratio of Pigeon / Lansinoh products]
China - Pigeon*

73%

UK53%

US35%

India*

24%

Singapore*Japan©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

21%
13%

*Sell-out

Others: Sell-in
12Reference: Extraordinary gains and losses in Q1 results
Due to a subsidy from the local government related to the completion of a new plant of Pigeon Home Products Co,
Q1 consolidated PL posted subsidy income of 648 million yen as extraordinary income and loss on reduction of fixed
assets of 648 million yen related to this subsidy income as extraordinary loss.
Unit: Million JPY

Q1 / Dec. 2023 YTD
Actual% of Total

Q1 / Dec. 2024 YTDーActual% of Totalー

YoY Change

Net Sales

23,613

Cost of Sales

12,122

51.3%

12,110

51.0%

99.9%

Gross Profit

11,49048.7%

11,63949.0%

101.3%

SG&A Expenses

8,086

34.2%

8,941

37.6%

110.6%

Operating Income

3,404

14.4%

2,697

11.4%

79.2%

Ordinary Income

3,791

16.1%

2,963

12.5%

78.2%

680

2.9%

3,144.6%

676

2.8%

2,668.6%

1,906

8.0%

78.2%

[Currency Rates] 2024 Q1 Results: US$1 = JPY 148.43
2023 Q1 Results: US$1 = JPY 132.39

CNY 1 = JPY 20.65
CNY 1 = JPY 19.33

Extraordinary Income

21

Extraordinary Loss25

Net Income Attributableto Owners of Parent©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

2,438

ーー

10.3%

23,749100.6%

13

Disclaimer on Forward-Looking Statements
This material includes certain forward-looking statements about the Pigeon Group.
To the extent that statements in this material do not related to historical or current
facts, they constitute forward-looking statements.
These forward-looking statements are based on the current assumptions andjudgments of the Pigeon Group in light of the information currently available to it,
and involve know and unknown risks, uncertainties and other factors, which may
affect the statements made in this material.

PHead Office
4-4, Nihonbashi-Hisamatsucho, Chuo-ku, Tokyo
103-8480, Japan©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

URL http://www.pigeon.co.jp/
http://www.pigeon.com/

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