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pigeon Financial Results for Q2 / FY Dec. 2026 ( YTD 6 months - January to June ) Pigeon Corporation August 6 , 2026 Stock Code : 7956 Celebrate babies the way they are
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2 © Pigeon Corporation All Rights Reserved. • Financial Results for Q2 / FY Dec. 2026 (YTD 6 months) P3-7 • Review by Business Segment P8-12 • Progress of the Mid-Term Management Plan and Future Outlook P14-20 • FY Dec. 2026 Earnings Forecast P21-25 • Appendix P26-40 Agenda
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3 © Pigeon Corporation All Rights Reserved. Executive Summary 58,977million yen Sales 7,878 million yen Operating Income YoY +9.8% YoY +17.9% 3 13.4% Financial Results for the First Half of the FY2026 Both sales and operating profit significantly exceeded the prior-year results. Initiatives under the mid-term strategy are making steady progress. Outlook for the Second Half and Beyond OP Margin • Solid core business performance and sustained growth momentum: The core business remained robust, driven by sales growth and improved profitability underpinned by solid demand. Key initiatives under the Mid-Term plan are also progressing smoothly. • Temporary External Factors and Full-Year Forecast Unchanged: Maintained full-year forecasts, carefully factoring in the potential prolongation of temporary geopolitical risks. Continuing to address macroeconomic headwinds with agility through product mix optimization and pricing actions. • Striving for Sustainable Growth in the Medium to Long Term: Efforts to achieve mid-term plan targets are making steady progress. The entire company is working together to achieve full-year targets and to realize medium- to long-term enhancement of corporate value. • Consolidated Results: Both sales and operating income exceeded prior-year levels. • By Business Segment: All segments achieved sales growth. • Operating income exceeded the prior-year level on a consolidated basis, as profit growth in other regions offset Middle East-related headwinds on the Singapore business.
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4 © Pigeon Corporation All Rights Reserved. * Currency Rates: FY2026 1H results: US$1 = JPY 158.13, CNY 1 = JPY 23.04; FY2025 1H results: US$1 = JPY 148.50, CNY 1 = JPY 20.47 Achieved YoY growth in net sales and at all profit levels, driven by top-line growth and improved profitability across all business segments. (Unit: Million JPY) Actual % of Total Actual % of Total YoY Change Net Sales 53,734 100.0% 58,977 100.0% 109.8% Cost of Sales 26,500 49.3% 28,868 48.9% 108.9% Gross Profit 27,234 50.7% 30,108 51.1% 110.6% SG&A Expenses 20,549 38.2% 22,230 37.7% 108.2% Operating Income 6,684 12.4% 7,878 13.4% 117.9% Ordinary Income 6,875 12.8% 7,986 13.5% 116.2% Net Income Attributable to Owners of Parent 4,624 8.6% 5,221 8.9% 112.9% FY2026 1H Results - Consolidated P&L (YTD 6 months) 1H / Dec. 2025 1H / Dec. 2026 Sales and operating income exceeded both prior-year results and plan
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5 © Pigeon Corporation All Rights Reserved. Achieved YoY sales growth across all business segments The Baby Care segment in Japan also posted strong revenue growth despite a decline in the birth rate. Profit growth in other regions offset Middle East-related headwinds on the Singapore business, resulting in a YoY increase in consolidated operating income. (Unit: Million JPY) Net Sales % of Total Gross Margin Segment Profit Net Sales % of Total YoY Change Gross Margin Segment Profit Consolidated Net Sales 53,734 ー 50.7% 6,684 58,977 ー 109.8% 51.1% 7,878 Japan Business 18,476 34.4% 34.4% 1,107 19,780 33.5% 107.1% 35.1% 1,744 China Business 21,274 39.6% 56.4% 5,696 24,072 40.8% 113.2% 55.0% 6,136 Singapore Business 7,200 13.4% 42.2% 1,113 7,287 12.4% 101.2% 43.5% 1,059 Americas and Europe Business 10,613 19.8% 55.6% 486 12,239 20.8% 115.3% 55.7% 928 Elimination of inter- segment transactions (3,829) (7.1%) ー ー (4,402) (7.5%) ー ー ー [Reference] Breakdown of Japan Business Baby Care 13,879 － 38.3% 1,191 14,908 － 107.4% 39.8% 1,814 Childcare Services 1,696 － 17.6% 59 1,667 － 98.3% 14.9% 55 Health & Elder Care 1,940 － 33.9% 121 2,011 － 103.7% 32.6% 107 1H / Dec. 2025 1H / Dec. 2026 FY2026 1H Results – By Business Segment
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6 © Pigeon Corporation All Rights Reserved. Achieved YoY growth in consolidated operating income, driven by higher sales and an improved gross margin Operating income up approximately ¥1.2 billion YoY, after absorbing growth investments across all business segments. FY2025 1H Operating Income Increased Gross Profit by higher sales Marketing related expenses Other expenses FY2026 1H Operating Income FY2026 1H Results – Change in Operating Income (YoY) (Unit: 100M. JPY) Operating Income Increase Decrease Impact of Gross Margin improvement Personnel expenses Travel and Logistics expenses + + -1.8
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7 © Pigeon Corporation All Rights Reserved. Inventories increased from the prior fiscal year-end Going forward, we aim to improve efficiency and CCC through enhanced monitoring. (Unit: 100M. JPY) Actual Actual YoY Change (Amount) YoY Change (%) YoY Change (Amount) w/o impacts of FX rates Cash and Deposits 39,609 36,271 (3,338) 91.6% (4,232) Notes and Accounts Receivable - Trade 18,642 23,548 +4,906 126.3% +3,969 Inventories 16,265 18,690 +2,424 114.9% +1,839 Notes and Accounts Payable - Trade 5,121 6,606 +1,484 129.0% +1,345 Electronically Recorded Obligations - Operating 366 506 +140 138.4% +140 Borrowings － － 0 － － Net Assets 85,887 88,333 +2,445 102.8% +355 Total Assets 110,088 115,267 +5,178 104.7% +2,122 Equity Ratio 75.3% 74.1% － － － FY2026 1H Results – Consolidated Balance Sheet (Highlights) End of FY2025 FY2026 Q2 * Currency Rates: FY2026 Q2 results: US$1 = JPY 158.13, CNY 1 = JPY 23.04
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8 © Pigeon Corporation All Rights Reserved. 19,780 million yen YoY 107.1% 1,744 million yen YoY 157.5% Point Topic ✓ Business Portfolio Optimization: Discontinuation of Production and Sales of Strollers and Bouncers • Sales Channel Trends ✓ In-House E-Commerce: Achieved significant YoY growth in net sales ✓ Other Channels: Offline sales exceeded plan • P&L Trends ✓ Profit Growth Achieved: Gross profit and operating profit increased due to the expansion of high-value-added products Bonyu Jikkan Sheer: Nursing bottles/nipples POCHItto Slim: Baby care appliance FY2026 1H Results – Review by Business Segment Japan Business Sales Segment profit • Sales Trends (by Product Category) ✓ Driven by High-Value-Added Products: Growth in baby care appliances, baby food, and nursing bottles/nipples ✓ Launch of New “Pigeon Kids” Brand (starting in February) ✓ Price Adjustments: Implemented for select baby food products (starting in March) Achieved YoY growth in both sales and profits, overcoming yen depreciation headwinds through the continued strong performance of baby care appliances, baby food, nursing bottles/nipples.
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9 © Pigeon Corporation All Rights Reserved. あ Achieved YoY growth in both sales and profit. Effective cost control in the e-commerce channel and strong performance by Pigeon America. • Sales Trend ✓ Nursing bottles/nipples (China): YoY growth. Market share also rose to 50% ✓ Skincare (China): Strong performance of the “Peach Leaf Series,” including new products for children. Also contributed to LTV growth ✓ South Korea: Nursing bottles/nipples posted robust growth of over 20% YoY • Sales Channel Trends ✓ 618 Shopping Festival: Gross Merchandise Value (GMV) grew 9% YoY ✓ Pigeon America: Successfully secured new distribution for nursing bottles/nipples at Target, a major US retailer 24,072million yen Sales 6,136million yen Segment profit YoY 113.2% YoY 107.7% Point China Baby & Child Personal Care Market Size Forecast 0 2000 4000 6000 8000 10000 2019 2020 2021 2022 2023 2024 2025E 2026E 2027E 2028E *Converted at 1 CNY = 20 JPY Source: Pigeon FY2026 1H Results – Review by Business Segment China Business (including Pigeon America, South Korea, etc.) Topic • P&L Trends ✓ In response to rising costs on e-commerce platforms, we will proactively advance pricing actions and optimize marketing expenses to maintain and improve profitability (Unit: 100M. JPY)* *Note: The Pigeon brand in North America is included in the China Business segment. Premiumization advancing despite the declining birthrate: Market expected to grow to approximately ¥950 billion by 2028
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10 © Pigeon Corporation All Rights Reserved. 7,287million yen 101.2% 1,059 million yen 95.1% FY2026 1H Results – Review by Business Segment Singapore Business Sales Segment profit YoY YoY Point Topic Singapore Business: Nursing Bottles/Nipples ーSales Mix Trends Wide-neck type Slim-neck type Achieved YoY sales growth despite Middle East-related headwinds. The strategy to shift toward wide-neck bottles is making steady progress. • Sales Trends (by Region) ✓ Malaysia and Australia: Strong sales of nursing bottles/nipples, etc. ✓ Trends in Key Countries: • India: Significant YoY growth; e-commerce sales, including QC (quick commerce), performed well. • Indonesia: Sales fell short of prior-year levels, but profits were in line. The shift to wide-neck nursing bottles showed growth, and sell-out remained solid. ✓ Middle East Impact: Shipments have temporarily resumed, but we are closely monitoring the situation • Sales Channel Trends ✓ Indonesia: Strategic products targeting the upper-middle-income segment will be rolled out sequentially to major convenience stores starting in June (completion in July). ✓ Indonesia and India: Plans to launch functional products. • P&L Trends ✓ Despite Middle East-related headwinds, gross margin rose 1.3 ppts, driven by the ongoing shift to wide-neck nursing bottles and other factors
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11 © Pigeon Corporation All Rights Reserved. Our nursing bottles strategy in the Americas and Europe is making steady progress. Solid performance in North America and robust growth across Europe are driving this momentum. 12,239million yen 928million yen YoY 115.3% YoY 190.9% Source: Prepared by the Company based on data from the CDC (Centers for Disease Control and Prevention) for 2020 -2025, and the U N "World Population Prospects 2024 (Medium variant)" for 2026 -2035. (thousands) （予測） Projected to grow at a CAGR of approx. 1% （予測） FY2026 1H Results – Review by Business Segment Americas and Europe Business Sales Segment profit Point Topic Trends in U.S. Births • Sales Trends (by Region and Product Category) ✓ North America — Nursing Bottles: Significant YoY growth. Both Lansinoh and Pigeon brands approximately doubled (See P.16). Continuing to strengthen promotional efforts to drive new customer acquisition and brand awareness. ✓ Other Products in North America: Nipple care cream sales remained steady. ✓ Europe: Significant growth in all major countries. Nursing bottles posted significant growth YoY, and breast pumps also performed well. • Sales Channel Trends ✓ Major North American Retailers: Secured new shelf space in nursing bottles/nipples sections. Also secured new listings of key products at other retail chains. • PL Trends ✓ Profit margins improved significantly in Q2 alone, resulting in a 3.0 ppts increase for 1H YoY. Remains stable at a high level. Expected to grow at a CAGR of approximately 1% from 2026 onward.
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12 © Pigeon Corporation All Rights Reserved. Actively driving co-creation initiatives with society to realize our “ Purpose.“ Topic Point ESG and Sustainability • Received the highest "AAA" rating in the MSCI ESG Ratings for the first time in June 2026. • Maintained inclusion in two FTSE indices and two MSCI indices, based on the end-of- June 2026 assessment. • Received an "A-" score in the Climate Change category of CDP 2025. Achieved AAA in the MSCI ESG Rating ESG Ratings / Inclusion in ESG Indices [Continued Inclusion] Purpose of the Pigeon Group Received an A- rating from CDP FY2026 1H Results – Review by Business Segment • Formulate social impact KPIs and link them to executive remuneration to realize our co-creation vision. ※ Disclaimer THE USE BY PIGEON CORPORATION OF ANY MSCI SOLUTIONS LLC OR CERTAIN RELATED ENTITIES (“MSCI”) DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION OR PROMOTION OF PIGEON CORP ORATION BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS AND ARE PROVIDED “AS IS” AND WITHOUT WARRANTY. MSCI N AMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI. THE INCLUSION OF PIGEON CORPORATION IN ANY MSCI INDEX, AND THE USE OF MS CI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT OR PROMOTION OF PIGEON CORPORATION BY MSCI OR ANY OF ITS AFF ILIATES. THE MSCI INDEXES ARE THE EXCLUSIVE PROPERTY OF MSCI. MSCI AND THE MSCI INDEX NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI OR ITS AFFILIATES . FTSE JPX Blossom Japan Index FTSE JPX Blossom Japan Sector Relative Index MSCI Japan ESG Select Leaders Index MSCI Japan Empowering Women Index (WIN)
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Progress of the Mid -Term Management Plan and Future Outlook
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14 © Pigeon Corporation All Rights Reserved. Sustainable Long -Term Goal for 2035 Review of Key Points from the 9th Mid-Term Management Plan Product Strategy Regional Strategy Strengthening the Management Foundation 20％ Concentrating resources based on competitive advantage and brand trust （Global Share 20％） 2026 -2028 Mid -Term Strategy Global Share 2026 –2028 Mid -Term Strategy Becoming Unrivaled No.1 in Global Share for Nursing Bottles/Nipples Formulating Pigeon’s Medium - to Long -Term Strategy for Sustained Corporate Value Creation Accelerating the growth of core products, led by nursing bottles With nursing bottles as the starting point: (1) improved profitability and (2) increased LTV Expanding into untapped, massive markets such as Europe, the U.S., and India. Transformation into a company with diverse global growth drivers Advancing a management and governance structure across regional and functional axes Enhancing organizational capabilities in the five core areas driving corporate growth
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15 © Pigeon Corporation All Rights Reserved. 15© Pigeon Corporation All Rights Reserved. Nursing bottles/nipples were the main drivers of overall growth. (1) Nursing Bottle Strategy: "Why Nursing Bottles?" and Progress Why Nursing Bottles are the Core of Our Growth The first touchpoint in childcare and essential items sustaining a baby’s life 1 Competitive advantage and high profitability driven by long-term research and production technology 2 Ability to extend the brand from nursing bottles to related products 3 Net Sales Core product group Other 2025 1H 2026 1H YoY Overall Core product group ＋9.8％ ＋15.3％ We achieved our targets across all four core product categories, demonstrating exceptionally strong performance. Leveraging our DNA and strong profitability to position them as the core of our global growth
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16 © Pigeon Corporation All Rights Reserved. 16 (2) Regional Strategy: The Americas and Europe — Strategy and Progress Europe and the Americas represent a significant white space for our company and are critical to expanding our global market share Background of the Americas and European Strategy Market research in North America confirmed growth potential, with expectations for higher average selling prices (ASP) 3 Nursing bottles/ nipples have recently achieved exceptional growth rates 1 A massive market driven by high birth rates in both the U.S. and Europe 2 North American market: Sales trends for nursing bottles/nipples Brand Strategy Optimizing marketing costs by leveraging existing platforms Growth driven by Lansinoh's strong brand recognition among mothers Leveraging Pigeon America’s business foundation (currently classified under the China Business) Americas & Europe Business YoY +approx.70％ 2023 1H 2024 1H 2025 1H 2026 1H China Business YoY +approx. 130％ 2023 1H 2024 1H 2025 1H 2026 1H Both brands nearly doubled YoY, exceeded their targets, and maintained strong performance.
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17 © Pigeon Corporation All Rights Reserved. Introduction of a CXO Structure Japan Singapore China Americas and Europe Japan Business Singapore Business China Business Americas and Europe Business CPO/ CSCO Global strategic implementation of development, procurement, and production CSO Management strategy formulation and optimization of portfolio CFO Group treasury management and optimization, timely and accurate disclosure CHRO Development and implementation of global talent and sustainability strategies CBO Building consistent global brand presence 17 (3) Strengthening the Management Foundation (Transforming the Management Structure Based on Regional and Functional Axes) Build organizational capabilities with replicable competitive advantages across five core areas 1 2 3 During the Middle East disruption, the CPO organization swiftly addressed challenges in the global supply chain, successfully assessing the situation and minimizing the impact Example Evolution of Supply Chain, Production, and Development Structures Notable examples that emerged over the past six months Global category optimization and streamlining Improving production efficiency for nursing bottles/nipples Company-wide supply chain optimization Transforming our ‘Create, Produce, and Deliver’ framework through a newly established organization. Maximizing the competitiveness of our nursing bottles/nipples through global optimization.
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18 © Pigeon Corporation All Rights Reserved. 18 Key Initiatives and New Product Trends Going Forward (2H Onward) Leveraging our brand strength in each region, we aim to improve profitability in a changing market environment by simultaneously driving the launch of high-value-added new products and agile pricing and channel optimization Japan Business China Business ⚫ Indonesia: Expand channels for wide-neck nursing bottles ⚫ India: Promote sales of high-margin products by strengthening EC and expand sales networks into untapped regions ⚫ New product launches: Drinking cups, oral care, functional skincare, etc. Singapore Business Americas and Europe Business Wide-neck nursing bottles as strategic new products (Essential Series) Continuous improvement of nursing bottle brand awareness and new product launches ⚫ Launch high-value-added new products ⚫ Acquire new demand segments by expanding our baby food and other product lineups ⚫ Improve factory utilization and profitability through higher sales of in-house manufactured products ⚫ Consider price adjustments New baby food products ⚫ Improve profitability on major EC platforms ⚫ Accelerate rollout in live commerce and improve profitability ⚫ Introduce new products at Pigeon America, which continues to perform well Launching new products in China, including skincare and others. ⚫ Americas: Further expand sales of nursing bottles and nipples ⚫ Europe: Maintain strong momentum ⚫ Specifically, focus on core categories and nursing bottles/nipples, while implementing pricing actions, product mix optimization, and agile cost control
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19 © Pigeon Corporation All Rights Reserved. Company-wide responses 19 Business Impact of the Middle East Situation and Company-wide Response (Update) Business impacts identified to date Impact Control and M itigation Decline in sales to the Middle East from the Singapore Business Risk of soaring raw material prices Impact on the top line Impact on supply chain and costs Supply Chain Response Management and Cost Containment Rapid decision-making by management and a global response framework We have established a global supply chain framework led by President and CEO, the Head of Supply Chain Strategy, and the Head of Management Strategy. We will continue to take agile measures to assess and minimize the impact of the increasingly protracted external environment. • Through diversification of raw material procurement, we have established a production system capable of meeting this year’s sales demand. • While closely monitoring the situation next year and beyond as it becomes increasingly protracted, we anticipate stable production operations by securing alternative raw materials. • Implementing thorough company-wide cost reduction measures. • Considering close collaboration between factories and sales companies, as well as pricing actions, to absorb rising raw material costs.
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20 © Pigeon Corporation All Rights Reserved. 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 Creating a "baby-friendly future" through co-creation and synergy driven by business growth 20© Pigeon Corporation All Rights Reserved.
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FY Dec. 2026 Earnings Forecast
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22 © Pigeon Corporation All Rights Reserved. [Reference] FY Dec. 2026 Earnings Forecast - Consolidated P&L * Currency Rates: FY2026/12 (Forecast): US$1 = JPY 150.00, CNY 1 = JPY 21.50; FY2025/12 (Actual): US$1 = JPY 149.66, CNY 1 = JPY 20.82 FY Dec. 2025 FY Dec. 2026 (Unit: Million JPY) Actual % of Total Forecast % of Total YoY Change Net Sales 109,170 100.0% 113,500 100.0% 104.0% Cost of Sales 54,331 49.8% 55,000 48.5% 101.2% Gross Profit 54,839 50.2% 58,500 51.5% 106.7% SG&A Expenses 41,680 38.2% 44,600 39.3% 107.0% Operating Income 13,158 12.1% 13,900 12.2% 105.6% Ordinary Income 13,681 12.5% 14,150 12.5% 103.4% Net Income Attributable to Owners of Parent 8,570 7.9% 9,140 8.1% 106.7% *2 Subsidy income not included ＊2 ＊2
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23 © Pigeon Corporation All Rights Reserved. 【Reference】Investment-related indicators (consolidated) （Unit: Million JPY） Interim (Actual) Full-year (Actual) Interim (Actual) Full-year (Actual) Interim (Actual) Full-year (Forecast) Capital investment (*1) 1,408 3,760 1,315 3,360 2,396 4,700 Depreciation and amortization (*2) 2,448 4,876 2,301 4,601 2,395 4,500 R&D expenses (*3) 2,200 4,286 2,100 4,065 2,523 4,600 *1 Includes tangible and intangible fixed assets (including long-term prepaid expenses) and lease assets. *2 Depreciation and amortization include amortization of goodwill and lease. *3 Both plan and actual numbers are “Monozukuri expenses” aggregated by Pigeon. FY Dec. 2026 Shareholder Returns and Investment Initiatives FY Dec. 2026 Earnings Forecast 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 108.7% 106.1% 99.5% FY Dec. 2024 FY Dec. 2026FY Dec. 2025Dividends FY Dec. 2024 FY Dec. 2026FY Dec. 2025
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25 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 relate 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 known 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/ Pigeon Corporation
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Appendix
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27 Appendix 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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Appendix Key Issues for Pigeon over the Mid and Long-term (Materiality) Contributing to the Resolution of Social Issues Helping to resolve the social issues that affect babies and families Participating in and supporting communities Promoting responsible procurement Expanding use of products designed for maternity hospitals New products and services for babies needing support Enhancing Business Competitiveness and Resilience Becoming essential to society by expanding our corporate value over the medium to long term Reforming framework to empower ‘Create, Produce, and Deliver’ Releasing products that exceed customer expectations Creating new businesses Supporting healthy baby skin development Supporting nursing babies Managing Talent and Cultivating the Right Culture for our Purpose Cultivating an organizational culture in which all employees can shine as they embrace new challenges Promoting diversity & inclusion Enriched investment in human resource development Ambitious organizational culture Working environments that achieve self-fulfillment and growth Establishing Solid Management Foundations Securing a structural basis for bold and ambitious endeavors that will improve medium- to long-term corporate value Dialogue with stakeholders Reinforcing risk management Reinforcing compliance Reinforcing group governance Reducing our Environmental Impact Practicing eco-friendly monozukuri and leaving a rich earth for the future of babies born tomorrow Reducing greenhouse gas emissions (Scope 1, 2 & 3) Circular manufacturing Using sustainable resources (paper & palm oil) Reforming framework to empower ‘Create, Produce, and Deliver’ Releasing products that exceed customer expectations Creating new businesses Supporting healthy baby skin development Supporting nursing babies Reducing greenhouse gas emissions (Scope 1, 2 & 3) Circular manufacturing Using sustainable resources (paper & palm oil)
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Appendix Vision of a Baby-Friendly Future We formulated Vision of a Baby-Friendly Future by describing, in terms of six specific faces of society, the “baby-friendly” world envisaged in that Purpose. In order to realize its Vision of a Baby-Friendly Future, Pigeon will move forward step by step, seeking to increase the number of people in society who empathize with the vision and co-creating and taking action with a diverse range of stakeholders. A comfortable world where babies are not troubled by environmental risks All babies are helped to develop and grow, regardless of the conditions of their birth No barriers to raising children Creativity from babies brings excitement to society Loose, friendly ties facilitating easy cooperation around raising children Babies are part of everyone’s everyday life Six specific faces of society https://www.pigeon.co.jp/vision-of-a-baby-friendly-future/Vision of a Baby-Friendly Future website
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30 © Pigeon Corporation All Rights Reserved. (Unit: Million JPY) Actual % of Total Actual % of Total YoY Change Net Sales 53,734 - 58,977 - 109.8% Operating Income 6,684 12.4% 7,878 13.4% 117.9% Ordinary Income 6,875 12.8% 7,986 13.5% 116.2% Net income attributable to owners of parent 4,624 8.6% 5,221 8.9% 112.9% Net Assets 80,646 - 88,333 - 109.5% Total Assets 105,400 - 115,267 - 109.3% EPS (JPY) 38.67 - 43.66 - 112.9% BPS (JPY) 652.81 - 715.28 - 109.6% ROE* 11.6% - 12.4% - - ROIC* 11.3% - 12.7% - - FY Dec. 2025 FY Dec. 2026 FY2026 1H Consolidated Financial Highlights *Denominators are averages of beginning and end of period
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31 © Pigeon Corporation All Rights Reserved. JPN + 7％ (Baby Care) USA + 137％ AUS + 2％ IDN - 6％ SGP - 10％ MYS - 1％ IND + 35％ UAE - 33％ (Middle East) VNM - 44％ KOR + 25％ CHN - 4％ FY2026 1H Results - Pigeon Sales* by Region (YoY) *Sell-In (Local Currency)
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32 © Pigeon Corporation All Rights Reserved. FY2026 1H Results - Lansinoh Sales* by Region (YoY) CAN + 11％ TUR + 48％ DEU + 16％ GBR + 16％ BENELUX + 27％ USA - 7％ Reactionary decline from pre -tariff front - loading *Sell-In (Local Currency)
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33 © Pigeon Corporation All Rights Reserved. FY Dec. 2026 1H Result Supplementary Material FY Dec. 2026 1H Results - Consolidated Cash Flow Comparison FY Dec. 2025 1H Net income before income taxes: 7,895 (FY25 Q2: 6,764) FY Dec. 2026 1H Purchase of tangible & intangible fixed assets: (1,821) (FY25 Q2: (1,713)) Dividends paid: (4,548) (FY25 Q2: (4,551)) (Unit: Million JPY) (Unit: Million JPY) Beginning Balance Operating Activities Investing Activities Financing Activities Effect of Exchange Rate Changes Ending Balance Beginning Balance Operating Activities Investing Activities Financing Activities Effect of Exchange Rate Changes Ending Balance
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34 © Pigeon Corporation All Rights Reserved. FY Dec. 2026 1H Results - Consolidated PVA Tree Average of B/S items at the beginning and end of the period is used for the calculation of CCC Actual 7,878 PY 6,684 Operating Income Actual 2,363 PY 2,005 Tax Actual 21,095 PY 20,679 Cash, other asset and Liability Actual 33,742 PY 33,767 Fixed Asset Actual 32,273 PY 28,178 Working Capital Actual 3,336 PY 2,613 PVA Actual 22,230 PY 20,549 SG&A Actual 58,977 PY 53,734 Net sales Actual 28,868 PY 26,500 Cost of Sales Common 5.0％ WACC Actual 87,110 PY 82,624 Invested Capital Actual 5,515 PY 4,679 NOPAT Actual 17,478 PY 14,188 Inventory Asset Actual 21,095 PY 20,028 Trade Receivables Actual 6,300 PY 6,038 Trade Payables Upper: FY26 1H Bottom: FY25 1H Consolidated Unit: Million JPY FY Dec. 2026 1H Result Supplementary Material
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35 © Pigeon Corporation All Rights Reserved. Consolidated Actual 48.9% PY 49.3% Cost of Sales ratio Actual 37.7％ PY 38.2% SG&A expense ratio Actual 17.9% PY 19.2% Cash and Other Asset and Liability Ratio Actual 28.6% PY 31.4% Fixed Asset Ratio Actual 27.4% PY 26.2% Working Capital Ratio Actual 1.4 PY 1.3 Invested Capital t/o Actual 13.4% PY 12.4% Operating Ratio Common 5.0％ WACC Actual 12.7% PY 11.3% ROIC Forecast 30.0% Tax Rate Actual 18.1% PY 16.2% ROIC before Tax Actual 7.7% PY 6.3% PVA Spread FY Dec. 2026 1H Result Supplementary Material FY Dec. 2026 1H Results - Consolidated PVA Tree Upper: FY26 1H Bottom: FY25 1H Average of B/S items at the beginning and end of the period is used for the calculation of CCC
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36 © Pigeon Corporation All Rights Reserved. Actual 32,273 PY 28,178 Working Capital Actual 6,300 PY 6,038 Trade Payable Actual 17,478 PY 14,188 Inventory Asset Actual 21,095 PY 20,028 Trade Receivables CCC Actual PY 135.9 124.1 Actual PY DSO 65.3 68.0 Actual PY DIO 110.5 97.7 Actual PY DPO 39.8 41.6 Consolidated FY Dec. 2026 1H Result Supplementary Material Average of B/S items at the beginning and end of the period is used for the calculation of CCC FY Dec. 2026 1H Results - Consolidated PVA Tree Upper: FY26 1H Bottom: FY25 1H Unit: Million JPY
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37 © Pigeon Corporation All Rights Reserved. E-commerce sales ratio of Pigeon / Lansinoh products 25% 41% 44% 51% 63% 78% FY Dec. 2026 1H Results - E-Commerce Ratio in Key Markets China - Pigeon* UK US - Lansinoh India* Singapore* Japan *: Sell-out Others: Sell-in
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38 © Pigeon Corporation All Rights Reserved. （単位：百万円） (Unit: ¥millions) 中国（含む香港） China (incl.Hong Kong) 18,031 19,873 110.2% その他アジア Other Asian Countries 5,608 6,075 108.3% アジア合計 Total of Asian Countries 23,639 25,948 109.8% 北米 North America 6,975 7,585 108.8% 欧州 Europe 2,970 4,082 137.4% 中南米 Latin America 344 455 132.4% 中近東 Near and Middle East 1,510 1,591 105.4% その他地域 Other Regions 573 694 120.9% 台湾 Chinese Taipei 255 239 93.6% 韓国 Korea 1,346 1,720 127.8% シンガポール Singapore 512 510 99.7% マレーシア Malaysia 761 872 114.6% インドネシア Indonesia 1,062 1,015 95.5% タイ Thailand 513 489 95.3% インド India 375 498 132.9% FY Dec. 2026 1H Results - Sales by Region and Country （単位：百万円） (Unit: ¥millions) Breakdown by Major Asian CountriesSales by Region and Country 25/12期 上期 FY Dec. 2025 1H 前期比 YoY Change 26/12期上期 FY Dec. 2026 1H 地域 Regions 25/12期上期 FY Dec. 2025 1H 前期比 YoY Change 26/12期上期 FY Dec. 2026 1H 国 / 地域 Countries / Regions
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39 © Pigeon Corporation All Rights Reserved. （単位：百万円）（￥millions） 売上高 Net Sales 構成比 % of total 総利益 Gross Profit 総利益率 GP margin （%） セグメント 利益 Segment Income セグメント 利益率 OP margin （%） 売上高 Net Sales 構成比 % of total 前期比：率 % of growth 総利益 Gross Profit 総利益率 GP margin （%） セグメント 利益 Segment Income セグメント 利益率 OP margin （%） 連結計上額 53,734 ー 27,234 50.7% 6,684 12.4% 58,977 ー 109.8% 30,108 51.1% 7,878 13.4% 日本事業 Japan Business 18,476 34.4% 6,347 34.4% 1,107 6.0% 19,780 33.5% 107.1% 6,938 35.1% 1,744 8.8% 中国事業 China Business 21,274 39.6% 11,990 56.4% 5,696 26.8% 24,072 40.8% 113.2% 13,229 55.0% 6,136 25.5% シンガポール事業 Singapore Business 7,200 13.4% 3,036 42.2% 1,113 15.5% 7,287 12.4% 101.2% 3,168 43.5% 1,059 14.5% 米州・欧州事業 Americas and Europe Business 10,613 19.8% 5,900 55.6% 486 4.6% 12,239 20.8% 115.3% 6,820 55.7% 928 7.6% セグメント間取引消去 Elimination of internal trading between segments (3,829) (7.1%) － － － － (4,402) (7.5%) － － － － － 以下参考試算値 Reference ベビーケア Baby Care Business 13,879 － 5,308 38.3% 1,191 8.6% 14,908 － 107.4% 5,937 39.8% 1,814 12.2% 子育て支援 Child Care Services Business 1,696 － 299 17.6% 59 3.5% 1,667 － 98.3% 248 14.9% 55 3.3% ヘルスケア・介護 Health & Elder Care Business 1,940 － 657 33.9% 121 6.3% 2,011 － 103.7% 655 32.6% 107 5.4% 2025年12月期 上期 FY 2025 1H Results 2026年12月期 上期 FY 2026 1H Results FY Dec. 2026 1H Results - Sales by Business Segment (Details)