Financial Results of Q3 / Dec. 2023
( YTD 9 months - January to September )(Securities Code: 7956)

November 8, 2023

Q3 / December 2023 ( YTD 9 months )Q3 Financial Results ( YTD 9 months sales )P. 3

Summary by Business Segment

P. 6

Sales by Region, EC ratio in Key Markets

P. 8

Full-Year Forecast

P. 11Agenda

FY 2023 Q3 Results - Consolidated P&L (YTD 9 months)
Net sales increased 3.2% YoY driven by Japan, China, and Lansinoh business. In addition to higher profits due toincreased revenue, improved gross margin absorbed increased SG&A expenses, resulting in higher operating income.

Unit: Million JPY

Q3 / Dec. 2022 YTD
ActualQ3 / Dec. 2023 YTD% of Total

ーActualーYoY Change

Net Sales

70,707

Cost of Sales

37,51053.1%

37,016

50.7%

98.7%

Gross Profit

33,19746.9%

35,92549.3%

108.2%

SG&A Expenses

24,09334.1%

25,74135.3%

106.8%

Operating Income

9,103

12.9%

10,18314.0%

111.9%

Ordinary Income

10,77415.2%

11,14915.3%

103.5%Net Income Attributableto Owners of Parent

6,948

9.8%7,281

10.0%

104.8%[Currency Rates] 2023 Q3 Results: US$1 = JPY 138.17
2022 Q3 Results: US$1 = JPY 128.31

CNY 1 = JPY 19.62
CNY 1 = JPY 19.38©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

72,942% of Total

103.2%3

FY 2023 Q3 YTD Results - Change in Operating Income (YoY)
SG&A expenses increased by 1.64 billion YoY in Q3 YTD due to the overspent of carry-over activities from the 1H.
Operating income increased by 1.08 billion yen YoY due to increased revenue and improved gross margin.
(Some of the sales promotion expenses, etc. will be carried over in the Q4.)
(Unit: 100M. JPY)

91.0

+16.8
+10.4(3.7)(6.1)■ Operating Income IncreaseQ3 2022 YTD
Impact ofIncreased
Operating Gross Profit by Gross Margin
improvement
higher sales
income©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

101.8
(3.9)

(2.7)

■ Decrease

Marketingthe previousyear
Personnel
relatedexpenses
Operating income
expenses

Travel andLogistics
expenses

Otherexpenses

Q3 2023 YTD
Operatingincome4

FY 2023 Q3 Results - By Business Segment (YTD 9 months)
Unit: Million JPY

Q3 / Dec. 2022 YTD Results
Segment
ProfitNet Sales% of Total

YoY Change

46.9%

9,103

72,942

ー

103.2%

49.3%

10,183

37.8%

32.7%

924

27,57237.8%

103.2%

34.2%

1,638

26,220

37.1%

52.3%

8,100

27,301

37.4%

104.1%

55.8%

8,613

Singapore Business

10,772

15.2%

41.4%

1,978

10,118

13.9%

93.9%

38.2%

1,225

Lansinoh Business

12,384

17.5%

51.1%

476

13,65118.7%

110.2%

54.0%

881

Elimination of intersegment transactions(5,396)(7.6%)(5,702)(7.8%)Net Sales% of Total

Consolidated
Net Sales

70,707ーJapan Business

26,726China Business

Gross
MarginQ3 / Dec. 2023 YTD Resultsーーー

GrossMarginーSegment
Profitー[Reference] Breakdown of Japan BusinessQ3 / Dec. 2022 YTD Results
Unit: Million JPY

Net Sales

Baby Care

18,694

Childcare Services

2,577

Health & Elder
Care

3,686

% of Total©Pigeon Corporation All Rights Reserved. │ Strictly ConfidentialーーーGross
MarginQ3 / Dec. 2023 YTD Results

Segment
ProfitNet Sales

37.1%

1,213

19,44215.6%

1412,574

31.3%

352

3,592

% of TotalーーーYoY Change

GrossMarginSegment
Profit104.0%

39.4%

1,897

99.9%

15.5%

140

97.5%

31.5%

3075

FY 2023 Q3 YTD Results - Business Summary By Segment*Sales: Sell-in on a local currency basis

Sales and income increased mainly due to growth in core products and steady sales of mainstay products
even after the price revision in February.
• Baby care sales are on a steady trend, up 4.0% YoY in Q3 YTD.

Japanbusiness• YTD sales of nursing bottles and skincare products increased YoY. Wet tissues and other consumables also performed well.
• New products launched in August, including the electric nasal aspirator “SHUPOT” and “Parts for Bonyu-Jikkan bottles(straw and lid)”.

• Inbound demand still remains sluggish despite an upward trend in the number of foreign visitors to Japan.
• YTD Gross margin of Baby Care improved by 2.3 pt YoY. Price revision in February also contributed.
• Another price revisions were implemented for baby-related products and Health & Elder Care products from September.

YTD sales of mainland China was flat YoY, partly due to advance shipments for W11. Sell-out struggled.
• Mainland China sales* were -8.2% in Q3 alone, but flat in Q3 YTD.
• YTD sales of nursing bottles/nipples increased 27% YoY. Baby skincare: -11% YOY. Skincare was particularly affected byChinabusinessheadwinds for Japanese brands following the release of ALPS treated water.
• Age-Up products (Natural weaning series and skincare for kids) are expanding sales both offline and through EC.
• YTD Gross margin (JPY) in China business improved by 3.5 pt YoY due to an increase in the sales composition of nursingbottles/nipples.
• YTD Sell-out were down 6% YoY, with EC at almost flat, but offline sales continued to be sluggish at -18% YoY. Sell-out ofTiktok and Pinduoduo, newly focused channels, continued to grow at double-digit YoY rates. EC ratio ended 72% in Q3 YTD.

©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

6

FY 2023 Q3 YTD Results - Business Summary By Segment*Sales: Sell-in on a local currency basis

Sales and income declined. Affected by the reactionary decline in major countries sell-in growth past year.
Expenses for sell-out growth will be incurred ahead of schedule.
• YTD sales* in India: -21% YoY, Malaysia: -9% YoY, Indonesia: -8% YoY, Middle East: -20% YoY• YTD Sell-out grew YoY, especially in India, Australia and Thailand driven by nursing bottle and nipple sales growth.

Singapore • New products include additional design of nursing bottles and a renewed model of breast pump.
business • Continued to strengthen sales of core products (nursing bottles and nipples, skincare); Natural Botanical skincare is

gradually expanding sell-out by strengthening brand recognition both in E-commerce and offline stores in key markets.

• YTD Gross margin (JPY) of the Singapore business deteriorated by -3.2 pt YoY due to lower sales at sales companies andfactories, etc.

Sales in North America fell below YoY, but sales in Europe and China increased. Lower ocean freight rates
contributed to improved gross margin.
• Lansinoh Group sales* increased 2% YoY (YTD). Sales in North America declined 4% YoY due to the increased competitionin the consumables market and a reactionary decline from special demand, while sales in Europe (Germany, UK, andFrance) increased mainly due to sales growth of core products such as nipple creams.

LansinohBusiness• YTD Sales of prenatal and postpartum care products grew by double digits YoY. Continued strong sales in North America,UK, Germany and Benelux.
• New product, Wearable Breast Pump is now available at one major US discount store in August. As a result, YTD sales inthe breast pump category are gradually recovering.
• YTD Gross margin (JPY) improved by 2.9 pt YoY, partly due to lower ocean freight rates (COGS factor). On the other hand,
U.S. distribution costs (SG&A factor) continued to soar.

©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

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FY 2023 Q3 YTD Results - Pigeon Sales by Region (YoY)

CHN
UAE
（中東）

-20%
IND

-0.3%

VNM

-21%-57%
MYS

JPN+22%+4%(Baby Care)

-9%

SGP
©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

KOR-4%

IDN

AUS-8%+27%Sell-In (Local Currency)

8

FY 2023 Q3 YTD Results - Lansinoh Sales by Region (YoY)
GBRCAN

USA-2%-4%©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

DEU

BENELUX+16%+9% TUR

+11%

CHN

+66%

+28%

Sell-In (Local Currency)

9FY 2023 Q3 YTD Results - EC Sales Ratio in Key Markets[E-commerce sales ratio of Pigeon / Lansinoh products]
72%

China - Pigeon*
58%

UK
41%

US
29%

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

14%
11%

*: Sell-out

Others: Sell-in10

FY 2023 Full-year Forecast - Unchanged
While the Japan and Lansinoh businesses are growing firmly, the Company also faces growing uncertainty in the China market, needs tostrengthen our business activity to recover business conditions in the China and Singapore business, and focuses on achieving its initial plan.
In Q4, we plan to spend on implementing measures to accelerate growth in each business and strengthening activities for sustainable growth.

Unit: Million JPY

FY Dec. 2022
ActualFY Dec. 2023 Outlook% of Total

Forecast% of Total

YoY Change

Net Sales

94,921100.0%

100,000

100.0%

105.4%

Cost of Sales

50,08752.8%

51,80051.8%

103.4%

Gross Profit

44,83447.2%

48,20048.2%

107.5%

SG&A Expenses

32,63834.4%

35,80035.8%

109.7%

Operating income

12,195

12.8%

12,40012.4%

101.7%

Ordinary income

13,46514.2%

12,400*12.4%

92.1%

Net Income Attributableto Owners of Parent

8,581

9.0%

8,100

8.1%

94.4%

* Subsidy income not included©Pigeon Corporation All Rights Reserved. │ Strictly Confidential[Currency rates] FY Dec. 2022 Results: US$1 = JPY 131.55 / CNY 1 = JPY 19.50
FY Dec. 2023 Budget: US$1 = JPY 130.00 / CNY 1 = JPY 19.50

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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 Office4-4, 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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The Pigeon Group seeks to maximize economic and social value through communications with all
stakeholders, including shareholders and other investors.
Please check our corporate website to understand our latest management strategies, businessresults and ESG activities.

Integrated Reporthttps://www.pigeon.com/ir/library/factbook/

Sustainability
https://www.pigeon.co.jp/sustainability/

ESG Data Book
https://www.pigeon.co.jp/sustainability/databook/©Pigeon Corporation All Rights Reserved. │ Strictly Confidential

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