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Financial Results of Q2 / Dec. 2025 (YTD 6 months - January to June) Ryo Yano President and CEO August 7, 2025
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Current areas where the Pigeon and Lansi n o h brand s are available Strengths and assets Growth Potential To Achieve a Dominant Global Share in Nursing Bottles and Nipples Over 60 years of R&D High-quality products and a robust sales network Solid management foundation and financial strength Talented individuals and a corporate culture aligned with our Purpose Strong brand power Both brands to accelerate expansion into new markets and categories Further strengthening the world's highest quality and most profitable Nursing Bottle & Nipple business by creating synergy between our baby care and mother care product lines!
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Q2 (January - June) / December 2025 (FY 69th) Q2 Financial Results P. 4 - 15 Full-Year Forecast for FY Dec. 2025 P. 16 - 19
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Q2 Financial Results
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China: The 618 Shopping Festival saw double-digit growth in both UV and GMV!Japan: New drinking bottles launch strong! UV +11% GMV +17% 618 Brand Ranking #1* in multiple platforms JD (Babycare Products, Nursing Bottles, Baby Skincare) Tmall (Baby Products, Nursing Bottles, Nipples) TikTok (Nursing Bottles) In specialty stores that launched the product early, #1* market share achieved Nationwide release in August *Pigeon Research FY2025 Q2 - Business Highlights (1) *Edited by Pigeon based on rankings published by various companies.
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Lansinoh: Strong performance in nursing bottles/nipples, primarily in the U.S.! Singapore: Sales mix showed a steady shift towards wide-neck bottles! Wide-neck bottle ratio over 60 % Launching the First India-Made Nursing Bottle "SoftLatch 2.0"! Sales growth over 40 % YoY FY2025 Q2 - Business Highlights (2)
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Unit: Million JPY Q2 / Dec. 2024 YTD Q2 / Dec. 2025 YTD Actual % of Total Actual % of Total YoY Change Net Sales 51,313 100.0% 53,734 100.0% 104.7% Cost of Sales 26,291 51.2% 26,500 49.3% 100.8% Gross Profit 25,021 48.8% 27,234 50.7% 108.8% SG&A Expenses 19,198 37.4% 20,549 38.2% 107.0% Operating Income 5,822 11.3% 6,684 12.4% 114.8% Ordinary Income 6,431 12.5% 6,875 12.8% 106.9% Net Income Attributable to Owners of Parent 3,574 7.0% 4,624 8.6% 129.4% FY2025 Q2 Results - Consolidated P&L (YTD 6 months) [Currency Rates] 2025 Q2 Results: US$1 = JPY 148.50 CNY 1 = JPY 20.47 2024 Q2 Results: US$1 = JPY 152.14 CNY 1 = JPY 21.08
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Unit: Million JPY Q2 / Dec. 2024 YTD Q2 / Dec. 2025 YTD Net Sales % of Total Gross Margin Segment Profit Net Sales % of Total YoY Change Gross Margin Segment Profit Consolidated Net Sales 51,313 100.0% 48.8% 5,822 53,734 100.0% 104.7% 50.7% 6,684 Japan Business 18,002 35.1% 33.0% 1,040 18,476 34.4% 102.6% 34.4% 1,107 China Business 19,629 38.3% 55.2% 5,149 21,274 39.6% 108.4% 56.4% 5,696 Singapore Business 7,094 13.8% 40.7% 954 7,200 13.4% 101.5% 42.2% 1,113 Lansinoh Business 10,092 19.7% 54.4% 462 10,613 19.8% 105.2% 55.6% 486 Elimination of inter- segment transactions (3,505) (6.8%) (3,829) (7.1%) Unit: Million JPY Q2 / Dec. 2024 YTD Q2 / Dec. 2025 YTD Net Sales % of Total Gross Margin Segment Profit Net Sales % of Total YoY Change Gross Margin Segment Profit Baby Care 13,093 36.8% 1,008 13,879 106.0% 38.3% 1,191 Childcare Services 1,727 15.0% 87 1,696 98.2% 17.6% 59 Health & Elder Care 2,248 33.7% 219 1,940 86.3% 33.9% 121 FY2025 Q2 Results - By Business Segment (YTD 6 months) [Reference] Breakdown of Japan Business
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58.2 +11.8 +10.3 (5.3) (1.9) (3.1) 66.8 Previous year Operating income (3.2) FY2025 Q2 Results - Change in Operating Income (YoY) Q2 2024 Operating income Increased Gross Profit by higher sales Impact of Gross Margin improvement Personnel expenses Logistics expenses Marketing- related expenses Other expenses Q2 2025 Operating income (Unit: 100M. JPY) Operating Income Increase Decrease
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Unit: Million JPY End of FY Dec. 2024 Q2 / FY Dec. 2025 Actual Actual YoY Change (Amount) YoY Change (%) YoY Change (Amount) w/o impacts of FX rates Cash and Deposits 39,201 34,071 (5,129) 86.9% (3,726) Notes and Accounts Receivable - Trade 18,392 21,663 +3,271 117.8% +4,394 Inventories 14,012 14,363 +351 102.5% +1,119 Notes and Accounts Payable - Trade 5,195 5,972 +776 114.9% +983 Electronically Recorded Obligations - Operating 369 538 +169 145.8% +169 Borrowings Net Assets 84,607 80,646 (3,960) 95.3% (1,110) Total Assets 108,308 105,400 (2,908) 97.3% +1,638 Equity Ratio 74.9% 74.1% FY2025 Q2 - Consolidated Balance Sheet (Highlight)
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FY2025 Q2 Results - Business Summary By Segment Sales growth driven by nursing bottles/nipples and babycare appliances, contributing to increased sales and profit • Baby care ended at +6% YoY. Sales through our own e-commerce platform surged by over 70% YoY. • Sales of nursing bottles/nipples increased YoY. Baby skincare sales of the new Age-Up product “Petit Kids Hair Care Series” were steady, but overseas demand for Japanese-made “Momo-no-ha (Peach leaves) Lotion” remained sluggish. • Sales of babycare appliances, centered on the "POCHItto" nursing bottle steam sterilizer/dryer, continued to perform well. • The new drinking bottle "magmag Seicho-Jikkan" saw sales at specialty stores where it was launched in May exceed expectations. • Gross margin for Baby care improved by 1.5pt YoY, driven by factors such as improved gross profit due to increased factory operations and sales through our own e-commerce platform. • Price revisions in baby-related products including nursing bottles and nipples, effective from June. • Health & Elder care implemented sales promotion of the new meal-related product Jibunde-taberu Meal Catch" and the renewal of cleansing products. *Sales: Sell-in on a local currency basis. New areas: Babycare appliances Electric nasal aspirator, nursing bottle steam sterilizer/ dryer, etc. Sales of high-priced products continued to perform well Strengthening existing areas Launched "Pigeon Bottle Lab," where customers can create their own custom nursing bottles/nipples Sales of new baby food and beverage products, the vegetable paste food "Gyu Gyu to Yasai” series, were also performing well Japan Business
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Strong performance in nursing bottles/nipples, and baby skincare products drove sales and profit growth • Accumulated sales* (RMB) in mainland China ended at +8% YoY. • Sales of nursing bottles/nipples increased +15% YoY, continuing strong performance. Market share also expanded. • Baby skincare grew by +17% YoY, driven by strong sales of the "Momo-no-ha (Peach leaves) Lotion." In Q2 alone, sales increased by +23% YoY. New product "Vernix Skincare Series" launched. • UV and GMV achieved double-digit growth in the “618” period compared to the previous year. Sales through e-commerce channels, centered on our flagship store, continued to perform well. Achieved No. 1 brand ranking in major e-commerce channels. • Sell-out grew by +12% YoY. EC +13%, offline +9%. Both EC and offline sales continued to perform well. Current EC sales ratio was 78%. • Sales of Pigeon brand nursing bottles/nipples showed strong growth in the North American market. • Gross margin of the China business (in JPY) improved +1.2pt YoY due to an increase in the sales composition of high-margin nursing bottles / nipples. New area: Age-Up products Strengthening sales in both offline and online Brand: Communication Participation in environmental conservation events Strengthening existing areas Launch of new baby skincare products China business FY2025 Q2 Results - Business Summary By Segment *Sales: Sell-in on a local currency basis.
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The Shift toward wide-neck bottles was progressed mainly in major countries, leading to increased sales and profit • Accumulated sell-in in Indonesia grew by +16% YoY, India +3%, Malaysia +4% and Middle East was -11% • Accumulated sell-out increased YoY in India, the Middle East, Australia, and Vietnam. Sell-out in Indonesia were a recovery trend. • In nursing bottles/nipples, the sales ratio of wide-neck bottles increased YoY, driven by the brand renewal effect of the "SofTouch " series. In India, new wide-neck nursing bottle "SoftLatch® 2.0“ was launched, targeting the growing upper-middle class. • In the Natural Botanical skincare business, sales of “Diaper Rash Cream,” a new product introduced in the previous year, continued strong performance. In Malaysia, a new Halal skincare product, "Milky Baby," sourced locally, was launched. • Gross margin (in JPY) of Singapore Business improved +1.5pt YoY, driven by the growth in sales of nursing bottles and nipples. Strengthening core products: Wide-neck bottles Brand renewal for the SofTouch series were implemented in Indonesia and Malaysia Strengthening Core Products: Skincare Increased exposure of Natural Botanical skincare series Singapore Business New product SoftLatch® 2.0 in India Milky Baby in Malaysia, etc. FY2025 Q2 Results - Business Summary By Segment *Sales: Sell-in on a local currency basis.
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Following on from Q1, sales and profit increased due to strong sales of mainstay products in North America and breast pumps in Europe • Accumulated sales of Lansinoh Group (US$) ended at + 8% YoY. • Accumulated sales in North America increased +2% YoY. While benefits from the initial impact of new breast pumps products ran its course in the DME channel, sales of nipple cream and breast pads remained steady. • In Europe, sales growth was driven by breast pumps (Wearable Pump). • Sales of postpartum and recovery care increased YoY, maintaining strong growth led by Germany and the Benelux region. • Sales of nursing bottles and nipples in the Lansinoh Group grew by over 40% YoY, showing strong growth. • Gross Margin (JPY) improved +1.2pt YoY, despite the impact of U.S. tariffs on raw material costs, due to factors such as a decrease in ocean freight costs. New area: Postpartum and recovery care Continuing high growth centered on Europe Strengthening existing areas: New products Glass nursing bottles in multi-pack (5/8 oz) Breast pump "Thrive 2 in 1 Breast Pump " Brand: Communication Strengthen information dissemination through SNS Lansinoh Business FY2025 Q2 Results - Business Summary By Segment *Sales: Sell-in on a local currency basis.
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Working to co-create value with society to realize a “Vision of a Baby-Friendly Future” • Obtained SBT certification for 2030 greenhouse gas emissions reduction targets for Scope 1 & 2 and Scope 3 (April) • FTSE Russell ESG Rating improved to 4.3, recognized for initiatives such as the establishment of the Pigeon Group Human Rights Policy (June) • Conducted the Human Milk Bank Donation Campaign" as part of the "Supporting Newborns" initiative (April –June) • Strengthened collaboration with multiple local governments in child-rearing support and disaster relief efforts (Miki City and K awanishi City in Hyogo Prefecture, Matsuyama City in Ehime Prefecture, etc.) Trend in FTSE Russell ESG Rating Supporting the irreplaceable lives of every individual Promoting the creation of baby-friendly communities Sustainability FY2025 Q2 Results - ESG and Sustainability Purpose of the Pigeon Group
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Full-Year Forecast for FY Dec. 2025
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• Impact of the U.S. tariffs: The current estimated impact amount was lower than the initial estimate made in April. • Performance Outlook: Taking into account the first-half performance, the full-year performance outlook remains unchanged. • Future measures: To achieve the plan, we will continue to monitor the situation closely and focus on improving profitability across all businesses. FY2025 Full-Year Forecast - Unchanged * Subsidy income not included [Currency Rates] 2025 Forecast: US$1 = JPY 147.00 CNY 1 = JPY 21.00 2024 Results: US$1 = JPY 151.48 CNY 1 = JPY 21.04 Unit: Million JPY Dec. 2024 Dec. 2025 Actual % of Total Forecast % of Total YoY Change Net Sales 104,171 100.0% 109,700 100.0% 105.3% Cost of Sales 52,799 50.7% 55,400 50.5% 104.9% Gross Profit 51,372 49.3% 54,300 49.5% 105.7% SG&A Expenses 39,233 37.7% 41,400 37.7% 105.5% Operating income 12,139 11.7% 12,900 11.8% 106.3% Ordinary income 13,282 12.8% 12,900 11.8% 97.1% Net Income Attributable to Owners of Parent 8,371 8.0% 8,400 7.7% 100.3%
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New products Vernix Skincare Series Developed using our proprietary "3D Baby Skin Model" POCHItto Slim Adding new items to the popular babycare appliance line Organic Pumping Spray A new product designed to address common issues during pumping Other key topics Japan New products: POCHItto Slim, retort-pouches for toddlers, and baby skincare products China Full-scale launch of the Vernix Skincare Series and new products with Disney designs Singapore StarTouch (drinking bottle), new pacifier series Lansinoh Launching Organic Pumping Spray & Renewing Our Breastmilk Storage Bottles Customizable Nursing Bottles Popular initiatives in Japan, China, and other regions Rolling out in pop-up formats across various locations StarTouch New drinking bottle product FY2025 - New Products and Topics for the Second Half
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Dividends Dec. 2023 Dec. 2024 Dec. 2025 Interim (Actual) Year-end (Actual) Interim (Actual) Year-end (Actual) Interim (Scheduled) Year-end (Forecast) Dividend per Share (yen) 38 38 38 38 38 38 Dividend payout ratio 122.6% 108.7% 108.4% (Full-year Forecast / Year-end) Investment-related Indicators (Consolidated) Unit: Million JPY Dec. 2023 Dec. 2024 Dec. 2025 Interim (Actual) Year-end (Actual) Interim (Actual) Year-end (Actual) Interim (Actual) Full-year (Forecast) Capex (*1) 3,775 6,320 1,408 3,760 1,315 4,600 Depreciation (*2) 2,518 5,080 2,448 4,876 2,301 4,500 R&D Expenses (*3) 2,000 4,210 2,200 4,286 2,100 4,700 *1: Property, plant and equipment and intangible assets (including long-term prepaid expense) *2 : Depreciation (including amortization of goodwill) *3 : Monozukuri expense FY2025 Shareholder Returns and Investment
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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 and judgments 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. Head Office 4-4, Nihonbashi-Hisamatsucho, Chuo-ku, Tokyo 103-8480, Japan URL http://www.pigeon.co.jp/ http://www.pigeon.com/
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Appendix
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Unit: Million JPY Q2 / Dec. 2024 Q2 / Dec. 2025 Actual % of Total Actual % of Total YoY Change Net Sales 51,313 53,734 104.7% Operating Income 5,822 11.3% 6,684 12.4% 114.8% Ordinary Income 6,431 12.5% 6,875 12.8% 106.9% Net Income Attributable to Owners of Parent 3,574 7.0% 4,624 8.6% 129.4% Net Assets 84,953 80,646 94.9% Total Assets 108,392 105,400 97.2% EPS (yen) 29.89 38.67 129.4% BPS (yen) 683.03 652.81 95.6% ROE * 9.0% 11.6% ROIC * 9.8% 11.3% FY2025 Q2 Results - Financial Highlights (Consolidated) *Denominators are averages of the beginning and end of the period
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FY2025 Q2 Results - Pigeon Sales* by Region (YoY) +6% (Baby care) +3% +4% +8% -2% +16% +27% -11% +2% +15% +153% *Sell-In (Local Currency)
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FY2025 Q2 Results - Lansinoh Sales* by Region (YoY) +2% -23% +22% +49% +4% +24% +36% *Sell-In (Local Currency)
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Balance at Beginning Operating Activities Investing Activities Financing Activities Translation Adjustment Balance at End Balance at Beginning Operating Activities Investing Activities Financing Activities Translation Adjustment Balance at End 34,357 4,171 (35) (5,635) 2,477 35,335 39,201 3,967 (1,745) (5,784) (1,567) 34,071 Q2 / Dec. 2024 Q2 / Dec. 2025 34,357 4,171 2,477 35,335(35) (5,635) 39,201 3,967 ▲ 1,567 34,071 (1,745) (5,784) FY2025 Q2 Results - Consolidated Cash Flow Comparison Income before income taxes: ¥6,764 [Q2 / Dec. 24: ¥6,143] Purchase/Sales of tangible and intangible fixed assets: ¥(1,713) [Q2 / Dec. 24: ¥(1,091)] Unit: Million JPY Dividends paid: ¥(4,551) [Q2 / Dec. 24: ¥(4,548)] (1,567)
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FY2025 Q2 - Consolidated PVA Tree (Breakdown of PVA) *B/S Factors for PVA calculation are averaged between beginning and year-end figures. Top: Q2 / Dec. 2025 Results Q2 Results 6,684 Q2 Results 53,734 Bottom: Q2 / Dec. 2024 Results Q2 LY 5,822 Q2 LY 51,313 (Unit Million JPY) Q2 Results 4,679 Q2 LY 4,076 Q2 Results 2,005 Q2 Results 26,500 Q2 LY 1,747 Q2 LY 26,291 Q2 Results 2,613 Q2 Results 82,624 Q2 Results 28,178 Q2 Results 20,028 Q2 Results 20,549 Q2 LY 1,999 Q2 LY 83,059 Q2 LY 26,339 Q2 LY 17,880 Q2 LY 19,198 Reference Q2 Results 33,767 Q2 Results 14,188 Q2 Results 41,312 Q2 LY 35,186 Q2 LY 13,996 0 Q2 LY 41,529 0 Q2 Results 20,679 Q2 Results 6,038 0 Common 5.0% Q2 LY 21,534 Q2 LY 5,537 0 Cash and other asset and liability Trade payables WACC PVA Capital invested Working capital Trade receivables SG&A expenses Fixed asset Inventory asset Capital invested Q2 Consolidated Operating profit Net sales NOPAT Tax Cost of sales
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FY2025 Q2 - Consolidated PVA Tree (Breakdown of PVA) Top: Q2 / Dec. 2025 Results Bottom: Q2 / Dec. 2024 Results Q2 Results 49.3% Q2 LY 51.2% Q2 Results 12.4% Q2 LY 11.3% Q2 Results 16.2% Q2 LY 14.0% Q2 Results 11.3% Q2 Results 38.2% Q2 LY 9.8% Q2 LY 37.4% Q2 Results 6.3% Q2 LY 4.8% Q2 Results 26.2% Q2 LY 25.7% Q2 Results 1.3 Q2 LY 1.2 Common 30.0% Q2 Results 31.4% Common 5.0% Q2 LY 34.3% Q2 Results 19.2% Q2 LY 21.0% Operating profit ratio Cost of sales ratio SG&A expenses ratio Consolidated PVA spread ROIC ROIC before tax Working capital ratio Fixed asset ratio Cash and other asset and liability ratio WACC Capital invested t/o Tax rate
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FY2025 Q2 - Consolidated PVA Tree (Breakdown of PVA) *B/S Factors for PVA calculation are averaged between beginning and year-end figures. Top: Q2 / Dec. 2025 Results Bottom: Q2 / Dec. 2024 Results (Unit：Million JPY) (Unit: Days) Q2 Results 28,178 Q2 Results 20,028 Q2 Results Q2 Results Q2 LY 26,339 Q2 LY 17,880 Q2 LY Q2 LY Q2 Results 14,188 Q2 Results Q2 LY 13,996 Q2 LY Q2 Results 6,038 Q2 Results Q2 LY 5,537 Q2 LY Receivable turnover period Inventory turnover period Payables turnover periodTrade payables Consolidated Working capital Trade receivables CCC Inventory asset
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21% 25% 27% 43% 57% 78% Japan Singapore* India* US UK China - Pigeon* [E-commerce sales ratio of Pigeon / Lansinoh] *Sell-out Others: Sell-in FY2025 Q2 Results - EC Sales Ratio in Key Markets
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We want to make the world more baby-friendly by furthering our commitment to understanding and addressing babies’ unique needs Purpose Our reason for being and the role we should play in society
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Enhancing Business Competitiveness and Resilience Reducing our Environmental Impact Key Issues for Pigeon over the Mid and Long-term (Materiality) Contributing to the Resolution of Social Issues Managing talent and Cultivating the Right Culture for our Purpose Establishing solid management foundations Becoming essential to society by expanding our corporate value over the medium to long term Helping to resolve the social issues that affect babies and families Cultivating an organizational culture in which all employees can shine as they embrace new challenges Securing a structural basis for bold and ambitious endeavors that will improve medium- to long-term corporate value Practicing eco-friendly monozukuri and leaving a rich earth for the future of babies born tomorrow Supporting healthy baby skin development Releasing products that exceed customer expectations Building resilient distribution systems Supporting nursing babies Creating new businesses Expanding use of products designed for maternity hospitals Promoting responsible procurement Participating in and supporting communities Ambitious organizational culture Reinforcing compliance Dialogue with stakeholders New products and services for babies needing support Reducing greenhouse gas emissions (Scope 1, 2 & 3) Circular manufacturing Using sustainable resources (paper & palm oil) Working environments that achieve self-fulfillment and growth Enriched investment in human resource development Promoting Diversity & inclusion Reinforcing group governance Reinforcing risk management
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8th MTP Themes and Key Strategy Centered on “Purpose” for our business activities and strengthening brand power through products For Sustainable Growth Restructuring of business structure in response to global economic, political, and environmental changes Key Strategy (deepening the ones of the 7th MTP) Brand Strategy Product Strategy Strengthen “Monozukuri”, focus on core categories (Nursing bottles and Skincares), and explore the “New areas” Strengthen autonomous business operation by each SBU. Implement the drastic structural reform to establish production and sales systems tailored to market characteristics, improve efficiency and profitability, stabilize the supply chain, and prepare for the expansion of the new markets. Regional Strategy
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Vision of a Baby-Friendly Future Six specific faces of society
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The Pigeon Group seeks to maximize economic and social value through communications with all stakeholders, including shareholders and other investors. Visit our corporate website to learn about our latest management strategies, business results and ESG activities. Integrated Report Sustainability ESG Data Book https://www.pigeon.com/ir/library/factbook/ https://www.pigeon.co.jp/sustainability/ https://www.pigeon.co.jp/sustainability/databook/
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FY2025 Q2 Results – Sales by Region and Country (Unit: ¥millions) (Unit: ¥millions)
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FY2025 Q2 Results – By Business Segment (Details)