Interim report
Page 1
Pigeon Corporation ( 7956 ) Summary of Financial Results for the Second Quarter ( First Half ) of Fiscal Year Ending December 31 , 2026 Summary of Financial Results for the Second Quarter ( First Half ) of Fiscal Year Ending December 31 , 2026 [ Japanese Standards ] ( Consolidated ) August 6 , 2026 Name of Listed Company : Pigeon Corporation ( Stock code : 7956 ) Listing : Prime Market , Tokyo Stock Exchange Website : www.pigeon.com Representative : Ryo Yano , President and CEO Contact Person : Nobuo Takubo , Director , Junior Managing Executive Officer , Chief Strategy Officer / Tel : + 81-3-3661-4204 Scheduled Filing Date of Semi - annual Securities Report : August 7 , 2026 Scheduled Commencement Date of Dividend Payments : September 7 , 2026 Preparation of Any Additional Explanatory Materials for Financial Results : Yes Holding of Any Briefing Session for Financial Results : Yes ( For analysts and institutional investors ) ( Yen amounts are rounded down to millions , unless otherwise noted . ) 1. Consolidated Business Performance for the Second Quarter ( First Half ) of Fiscal Year Ending December 31 , 2026 ( January 1 to June 30 , 2026 ) ( 1 ) Consolidated Operating Results ( cumulative ) ( Millions of yen , unless otherwise noted ; Percentage figures denote year - on - year changes ) Ordinary Profit Profit Attributable to Owners of Parent 16.2 % 6.9 % 5,221 12.9 % 4,624 29.4 % First half ended June 30 , 2026 First half ended June 30 , 2025 ( Note ) Comprehensive income : Net Sales 9.8 % 4.7 % 58,977 53,734 First half ended June 30 , 2026 First half ended June 30 , 2025 Basic Earnings per Share ( ¥ ) 43.66 38.67 First half ended June 30 , 2026 First half ended June 30 , 2025 ( 2 ) Consolidated Financial Position Operating Profit 7,878 17.9 % 7,986 6,684 14.8 % 6,875 ¥ 7,478 million ( 445.9 % ) ¥ 1,370 million ( -84.7 % ) Diluted Earnings per | Share ( ¥ ) As of June 30 , 2026 As of December 31 , 2025 As of June 30 , 2026 As of December 31 , 2025 Total Assets 115,267 110,088 ( Millions of yen , unless otherwise noted ) Net Assets 88,333 85,887 ( Reference ) Equity ( Shareholders ' equity + Accumulated other comprehensive income ) ¥ 85,441 million ¥ 82,916 million Equity Ratio ( % ) 74.1 75.3 2. Cash Dividends 1Q - end 2Q - end FY ended December 31 , 2025 FY ending December 31 , 2026 38.00 38.00 Annual Dividend ( ¥ ) 3Q - end Year - end Total 38.00 76.00 FY ending December 31 , 2026 38.00 76.00 ( Forecast ) ( Note ) Revision of dividend forecast from the most recent announcement : None
Page 2
Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter (First Half) of Fiscal Year Ending December 31, 2026 3. Consolidated Business Performance Forecast for the Fiscal Year Ending December 31, 2026 (January 1 to December 31, 2026) (Millions of yen, unless otherwise noted; Percentage figures denote year -on-year changes) Net Sales Operating Profit Ordinary Profit Profit Attributable to Owners of Parent Basic Earnings per Share (¥) Full year 113,500 4.0% 13,900 5.6% 14,150 3.4% 9,140 6.7% 76.41 (Note) Revision of business performance forecast from the most recent announcement: None Notes (1) Significant changes in the scope of consolidation during the period under review: None New: – (Company name: – ), Excluded: – (Company name: – ) (2) Application of any accounting procedures specific to preparation of semi-annual consolidated financial statements: None (3) Changes in accounting policies, changes in accounting estimates, and restatements 1) Changes in accounting policies associated with revision of accounting standards : None 2) Changes in accounting policies other than the above 1): None 3) Changes in accounting estimates: None 4) Restatements: None (4) Number of shares issued (common shares) 1) Number of shares issued at the period-end (including treasury shares) As of June 30, 2026: 121,653,486 shares As of December 31, 2025: 121,653,486 shares 2) Number of treasury shares at the period-end As of June 30, 2026: 2,201,138 shares As of December 31, 2025: 2,023,423 shares 3) Average number of shares outstanding during the period (cumulative) First half ended June 30, 2026: 119,596,170 shares First half ended June 30, 2025: 119,609,586 shares (Note) The number of treasury shares at the period-end includes the Company shares held by the board incentive plan (BIP) trust for compensation of directors ( 306,422 shares as of June 30, 2026; 128,887 shares as of December 31, 2025). The Company shares held by the BIP trust for compensation of directors are also included in the treasury shares to be subtracted in the calculation of the average number of shares outstanding during the period. * The s ummary of financial results for the s econd quarter ( first half) is exempt from review by certified public accountants or an audit firm. * Cautionary statement regarding performance forecast The forecast and future projections stated in this report have been prepared on the basis of the information and assumption that shall be reasonable as of the date of announcement of this summary information, and the forecast and future projections stated in this report are in no way intended as a promise of achievement as a company. In addition, the actual results could differ significantly from forecast figures depending on a variety of factors. See “(3) Forward-looking Statements Including Consolidated Business Performance Forecast ” under “1. Overview of Management Results and Related Matters ” on page 5 regarding conditions which are preconditions for business performance forecast and cautions for using the business performance forecast.
Page 3
Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter (First Half) of Fiscal Year Ending December 31, 2026 1 Table of Contents of the Appendix 1. Overview of Management Results and Related Matters ...................................................................... 2 (1) Overview of Management Results for the Period under Review .................................................... 2 (2) Overview of Financial Position for the Period under Review......................................................... 4 (3) Forward-looking Statements Including Consolidated Business Performance Forecast ................. 5 2. Semi-annual Consolidated Financial Statements and Main Notes ...................................................... 6 (1) Semi-annual Consolidated Balance Sheets ...................................................................................... 6 (2) Semi-annual Consolidated Statements of Income and Semi-annual Consolidated Statements of Comprehensive Income .................................................................................................................... 8 Semi-annual Consolidated Statements of Income ........................................................................... 8 Semi-annual Consolidated Statements of Comprehensive Income ................................................ 9 (3) Semi-annual Consolidated Statements of Cash Flows .................................................................. 10 (4) Notes on Semi-annual Consolidated Financial Statements ........................................................... 11 (Notes on Segment Information etc.) ............................................................................................. 11 (Notes Regarding Substantial Changes in Shareholders’ Equity) ................................................. 11 (Notes Regarding Going Concern Assumptions) .......................................................................... 11
Page 4
Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter (First Half) of Fiscal Year Ending December 31, 2026 2 1. Overview of Management Results and Related Matters (1) Overview of Management Results for the Period Under Review 1) Performance Overview During the first -half period under review, the Japanese economy was on a modest recovery path with personal consumption picking up. Meanwhile, close attention continued to be paid to the impact of escalating tensions in the Middle East. In the global economy, while a moderate recovery continued despite sluggishness in some regions, the outlook remained uncertain due to the emergence of geopolitical risks, volatility in financial and capital markets, and U.S. policy developments among other factors. Against this background, the Pigeon Group has launched its Ninth Medium-Term Management Plan (FY2026–FY2028). Under this plan, we are implementing measures aimed at achieving our new goal of sustained growth with profitability, leveraging the insights gained from our previous business restructuring efforts. Specifically, based on three basic strategies (product strategy, regional strategy, and reinforcement of management foundations and steady implementation of ESG), we are pursuing a breakthrough in profitability in our existing business fields; concentrating investment to achieve a 20% global market share in the nursing bottle market within the next 10 years; and securing profitability through accelerated growth in the Americas and Europe Business and the Singapore Business, as well as stable growth in the Japan Business and the China Business. We are also strengthening our management foundation to ensure strategy execution through swift decision-making. In addition to pursuing business growth, the Group implemented a range of measures to achieve its purpose, which is “to make the world more baby- friendly by furthering our commitment to understanding and addressing babies’ unique needs.” During the first -half period under review, net sales increased across all business segments to total ¥58,977 million (up 9.8% YoY), due to strong sales of high-value-added products such as baby care appliances, baby foods, and skincare products in the Japan Business, as well as steady sales of core products including nursing bottles and nipples in overseas segments, primarily in the China Business. On the profit front, higher revenue increased gross profit, and an improvement in the gross profit margin YoY absorbed higher SG&A expenses, including growth investments. As a result, operating profit increased to ¥7,878 million (up 17.9% YoY), ordinary profit to ¥7,986 million (up 16.2% YoY), and profit attributable to owners of parent to ¥5,221 million (up 12.9% YoY). The principal exchange rates used to translate revenues and expenses of overseas consolidated subsidiaries for the first-half period under review were as follows: US$1: 158.13 yen (148.50 yen) CNY1: 23.04 yen (20.47 yen) Note: Figures in parentheses represent the exchange rate in the same period of the previous fiscal year. 2) Segment Review The Group has a total of four reportable segments: Japan Business, China Business, Singapore Business, and Americas and Europe Business. Please note that, effective from the first-half period under review, the reportable segment previously presented as the Lansinoh Business has been renamed the Americas and Europe Business. This is a change in segment name and does not affect the segment information. The overview of each segment’s performance is given below. Japan Business This segment consists of businesses such as the Baby Care Business, Child Care Service Business, and Health & Elder Care Business. Net sales for the entire segment amounted to ¥19,780 million (up 7.1% YoY), and segment profit was ¥1,744 million (up 57.5% YoY).
Page 5
Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter (First Half) of Fiscal Year Ending December 31, 2026 3 In the Baby Care Business (childcare and feminine products), sales expanded YoY, buoyed by growth in high- value-added products such as baby care appliances, baby foods, and skincare products. As for new products, we launched “Bonyu Jikkan® Sheer” nursing bottles and nipples featuring a translucent design and using nipples made with silicone from eco- friendly materials; “Sukusuku Tablets Strawberry Flavor” designed for toddlers who often lack in vegetable intake; “kaorigocochi,” a baby massage oil designed to enrich the time parents and children spend together; and “Mahou no Awa-awa (Magic Foam) Body Wash” and “Mahou no Awa-awa Shampoo” through Pigeon Kids. As such, we are strengthening our efforts to expand LTV (Lifetime Value) by offering ‘age-up’ products (products for toddlers and preschoolers) beyond baby care items. In terms of sales channels, offline sales improved, and our own e -commerce platform showed robust growth YoY. As part of its communication initiatives, the Group has been working to continuously strengthen its brand by promoting products and sales through pre -release product trial events and social -media sites, as well as holding seminars for medical practitioners. In the Health & Elder Care Business, we enhanced proposals to add value to existing products under our core brand Habinurse and focused on improving profitability through efficient business operations. Regarding the Child Care Service Business, we currently provide services at 51 in- company childcare facilities, and will continue to develop this business further while striving to improve the quality of service content. Overall, earnings in this segment rose significantly YoY, thanks to increased gross profit resulting from expanded sales of high- value-added products and other factors, as well as reduced ratio of SG&A expenses. China Business Net sales in this segment amounted to ¥24,072 million (up 13.2% YoY), and segment profit was ¥6,136 million (up 7.7% YoY). In mainland China, although sales of consumables and other products declined, growth in mainstay nursing bottles, nipples, and skincare products enabled net sales in local-currency terms to remain at approximately the same level YoY. In addition, we are enhancing competitiveness through new product launches—including nursing bottles and nipples using new nipple materials, as in the Japan Business, and UV -care products and shampoos under the well -received “Momo -no-ha (Peach leaves) Series.” In terms of sales channels, growth continued, particularly online. As a result of intensifying promotions for new products and other offerings in preparation for “618 Shopping Festival”, the largest e- commerce sales event during the first -half period under review, sell -out through our flagship stores on major e -commerce platforms and other channels exceeded the level of the same period of the previous fiscal year. In the South Korean and North American markets (Pigeon brand), where the Group operations are managed through this segment, we continued to strengthen our brand and carried out sales and marketing efforts starting with our local sales subsidiaries. In particular, in the North American market, sales of Pigeon brand baby care products, particularly nursing bottles and nipples, remained strong. Overall, earnings in this segment rose YoY, as an increase in gross profit due to higher sales and other factors absorbed SG&A expenses. Singapore Business Net sales of the segment amounted to ¥7,287 million (up 1.2% YoY), and segment profit was ¥1,059 million (down 4.9% YoY). In the ASEAN region, India, and other markets, where Group operations are managed through this segment, some shipments to the Middle East were suspended due to the situation in the region. Nevertheless, sales of mainstay products, particularly nursing bottles and nipples, remained solid, and net sales were broadly in line with the same period of the previous fiscal year. In particular,
Page 6
Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter (First Half) of Fiscal Year Ending December 31, 2026 4 sales in Malaysia and Australia continued to remain strong. In addition, we began introducing strategic products in the Indonesian market to strengthen sales of wide -neck nursing bottles. We will continue to target customers in the upper-middle class and higher income brackets, for example by deploying vigorous sales and marketing activities centered on our core products of nursing bottles, nipples, and baby skincare products, and by further driving the penetration of wide -neck nursing bottles and nipples. Overall, earnings in this segment declined YoY due partly to the impact of the situation in the Middle East, despite an improvement in the gross profit margin, among other factors, driven by the growth in highly profitable wide-neck nursing bottles and nipples. Americas and Europe Business Net sales of the segment amounted to ¥12,239 million (up 15.3% YoY), and segment profit was ¥928 million (up 90.9% YoY). In North America, a vital market for this segment, sales of nursing bottles and nipples increased significantly as a result of strengthening promotional initiatives to acquire new customers and increase brand awareness, and sales of mainstay products such as nipple creams also remained solid. However, net sales in local -currency terms decreased YoY due to intensifying competition and other factors in the breast -pump category and consumables. In Europe, net sales increased significantly across all major countries, including Germany, the United Kingdom, Turkey, and France. Sales of nursing bottles, nipples, and breast pumps were strong, and net sales in local-currency terms increased YoY. Overall, earnings in this segment increased YoY, absorbing marketing expenses to strengthen our presence in the U.S. market for nursing bottles and nipples. (2) Overview of Financial Position for the Period Under Review (Assets) As of June 30, 2026, the Group recorded total assets of ¥115,267 million, up ¥5,178 million from the end of the previous fiscal year. Current assets increased by ¥4,749 million, while non- current assets increased by ¥429 million. Current assets increased mainly due to increases in notes and accounts receivable – trade of ¥4,906 million, raw materials and supplies of ¥1,745 million, and other current assets of ¥763 million, despite a decrease in cash and deposits of ¥3,338 million. Non-current assets increased mainly due to increases in buildings and structures of ¥267 million and investments and other assets of ¥189 million. (Liabilities) As of June 30, 2026, the Group recorded total liabilities of ¥26,934 million, up ¥2,732 million from the end of the previous fiscal year. Current liabilities increased by ¥2,232 million, while non-current liabilities increased by ¥500 million. Current liabilities increased mainly due to increases in notes and accounts payable – trade of ¥1,484 million and other current liabilities of ¥778 million. Non-current liabilities increased mainly due to an increase in other non -current liabilities of ¥477 million. (Net Assets) As of June 30, 2026, the Group recorded total net assets of ¥88,333 million, up ¥2,445 million from the end of the previous fiscal year. Net assets increased mainly due to an increase in foreign currency translation adjustment of ¥2,196 million.
Page 7
Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter (First Half) of Fiscal Year Ending December 31, 2026 5 (3) Forward-looking Statements Including Consolidated Business Performance Forecast The business environment surrounding the Pigeon Group’s core business of childcare and feminine products has been affected by various factors. These include a global trend of declining birth rates, particularly in Japan and China; rising prices; changes in consumers’ values, purchasing behavior, and child- rearing styles; and intensified market competition driven by the emergence of local brands. Additionally, in light of rising geopolitical risks and developments in economic policies across countries, uncertainty about prospects for the global economy is intensifying, and forecasting remains as difficult as ever. Notwithstanding the above concerns, consumption rates can be expected to rise over the medium-to-long term in China, which is still a vast market, and in other Asian countries and emerging economies characterized by large numbers of births and continued economic growth. Furthermore, the Group sees considerable room for growth by creating new demand in Japan, making concerted efforts to expand the baby product business in North America and Europe, and developing markets in which the Pigeon Group has not yet entered. The current fiscal year ending December 31, 2026 is the first year of the Group’s newly launched 9th Medium -Term Management Plan. In this first year of the Plan, the Group will steadily implement various measures in line with the three basic strategies set forth, aiming to achieve sustainable growth with profitability. For the full-year business performance forecasts for the current fiscal year, we have left unchanged the forecast figures announced at the time of the financial results announcement dated February 13, 2026. Meanwhile, given the ongoing situation in the Middle East, forecasting the impact of raw material price fluctuations and other factors on our business performance remains extremely challenging. Should it become necessary to revise the business performance forecasts going forward, we will promptly make an appropriate disclosure.
Page 8
Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter (First Half) of Fiscal Year Ending December 31, 2026 6 2. Semi-annual Consolidated Financial Statements and Main Notes (1) Semi-annual Consolidated Balance Sheets (Millions of yen) As of December 31, 2025 As of June 30, 2026 ASSETS I. Current Assets: Cash and deposits 39,609 36,271 Notes and accounts receivable – trade 18,642 23,548 Merchandise and finished goods 12,600 13,186 Work in process 658 751 Raw materials and supplies 3,006 4,752 Other 2,097 2,860 Allowance for doubtful accounts (52) (60) Total Current Assets 76,561 81,310 II. Non-current Assets: 1. Property, Plant and Equipment: Buildings and structures, net 12,036 12,304 Land 7,351 7,327 Other, net 10,287 10,243 Total Property, Plant and Equipment 29,676 29,875 2. Intangible Assets: Other 1,179 1,219 Total Intangible Assets 1,179 1,219 3. Investments and Other Assets: Other 2,671 2,861 Total Investments and Other Assets 2,671 2,861 Total Non-current Assets 33,527 33,956 Total Assets 110,088 115,267 LIABILITIES I. Current Liabilities: Notes and accounts payable – trade 5,121 6,606 Electronically recorded obligations – operating 366 506 Income taxes payable 1,128 1,165 Provision for bonuses 1,119 956 Provision for expenses related to voluntary product recall 144 100 Other 10,246 11,025 Total Current Liabilities 18,127 20,360 II. Non-current Liabilities: Retirement benefit liability 752 746 Provision for bonuses – 45 Provision for share awards 129 112 Other 5,191 5,669 Total Non-current Liabilities 6,073 6,574 Total Liabilities 24,201 26,934
Page 9
Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter (First Half) of Fiscal Year Ending December 31, 2026 7 (Millions of yen) As of December 31, 2025 As of June 30, 2026 NET ASSETS I. Shareholders’ Equity: Share capital 5,199 5,199 Capital surplus 5,132 5,132 Retained earnings 57,717 58,366 Treasury shares (1,360) (1,673) Total Shareholders’ Equity 66,689 67,024 II. Accumulated Other Comprehensive Income: Valuation difference on available-for-sale securities 32 25 Foreign currency translation adjustment 16,194 18,391 Total Accumulated Other Comprehensive Income 16,227 18,416 III. Non-controlling Interests 2,970 2,891 Total Net Assets 85,887 88,333 Total Liabilities and Net Assets 110,088 115,267
Page 10
Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter (First Half) of Fiscal Year Ending December 31, 2026 8 (2) Semi-annual Consolidated Statements of Income and Semi-annual Consolidated Statements of Comprehensive Income Semi-annual Consolidated Statements of Income (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 I. Net Sales 53,734 58,977 II. Cost of Sales 26,500 28,868 Gross profit 27,234 30,108 III. Selling, General and Administrative Expenses 20,549 22,230 Operating Profit 6,684 7,878 IV. Non-operating Income: Interest income 189 148 Dividend income 11 11 Subsidy income 211 84 Other 81 88 Total Non-operating Income 494 333 V. Non-operating Expenses: Interest expenses 33 33 Foreign exchange losses 250 173 Other 18 17 Total Non-operating Expenses 303 224 Ordinary Profit 6,875 7,986 VI. Extraordinary Income: Gain on sale of non-current assets 3 20 Compensation for damage 361 – Total Extraordinary Income 365 20 VII. Extraordinary Losses: Loss on sale of non-current assets 0 1 Loss on retirement of non-current assets 20 21 Expenses related to voluntary product recall 454 – Loss on liquidation of business – 89 Total Extraordinary Losses 475 112 Profit before Income Taxes 6,764 7,895 Income taxes – current 2,138 2,372 Income taxes – deferred (102) 168 Total Income Taxes 2,036 2,540 Profit 4,728 5,354 Profit Attributable to Non-controlling Interests 103 132 Profit Attributable to Owners of Parent 4,624 5,221
Page 11
Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter (First Half) of Fiscal Year Ending December 31, 2026 9 Semi-annual Consolidated Statements of Comprehensive Income (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Profit 4,728 5,354 Other Comprehensive Income Valuation difference on available-for-sale securities (4) (6) Foreign currency translation adjustment (3,354) 2,130 Total Other Comprehensive Income (3,358) 2,124 Comprehensive Income 1,370 7,478 Comprehensive Income Attributable to: Owners of parent 1,428 7,411 Non-controlling interests (58) 67
Page 12
Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter (First Half) of Fiscal Year Ending December 31, 2026 10 (3) Semi-annual Consolidated Statements of Cash Flows (Millions of yen) Six months ended June 30, 2025 Six months ended June 30, 2026 Cash Flows from Operating Activities Profit before income taxes 6,764 7,895 Depreciation 2,281 2,395 Amortization of goodwill 19 – Increase (decrease) in allowance for doubtful accounts 1 6 Increase (decrease) in provision for bonuses (71) (127) Increase (decrease) in provision for expenses related to voluntary product recall 450 (44) Increase (decrease) in retirement benefit liability 45 6 Interest and dividend income (201) (160) Interest expenses 33 33 Gain on compensation for damage (361) – Loss (gain) on sale of non-current assets (2) (19) Loss on retirement of non-current assets 20 21 Loss on liquidation of business – 54 Decrease (increase) in trade receivables (4,506) (3,750) Decrease (increase) in inventories (1,071) (1,882) Increase (decrease) in trade payables 1,519 1,063 Increase (decrease) in accounts payable – other 1,604 654 Increase (decrease) in accrued consumption taxes 137 323 Other, net (1,099) (1,161) Subtotal 5,565 5,307 Interest and dividends received 154 172 Interest paid (31) (33) Compensation received for damage 361 – Income taxes paid (2,082) (2,299) Net Cash Provided by (Used in) Operating Activities 3,967 3,146 Cash Flows from Investing Activities Purchase of property, plant and equipment (1,522) (1,547) Proceeds from sale of property, plant and equipment 6 137 Purchase of intangible assets (191) (273) Purchase of investment securities – (7) Other, net (39) (211) Net Cash Provided by (Used in) Investing Activities (1,745) (1,902) Cash Flows from Financing Activities Dividends paid (4,551) (4,548) Dividends paid to non-controlling interests (854) (146) Purchase of treasury shares (0) (358) Proceeds from disposal of treasury shares 74 23 Other, net (453) (511) Net Cash Provided by (Used in) Financing Activities (5,784) (5,542) Effect of Exchange Rate Change on Cash and Cash Equivalents (1,567) 959 Net Increase (Decrease) in Cash and Cash Equivalents (5,130) (3,338) Cash and Cash Equivalents at Beginning of Period 39,201 39,609 Cash and Cash Equivalents at End of Period 34,071 36,271
Page 13
Pigeon Corporation (7956) Summary of Financial Results for the Second Quarter (First Half) of Fiscal Year Ending December 31, 2026 11 (4) Notes on Semi-annual Consolidated Financial Statements (Notes on Segment Information etc.) Segment Information I. Six months ended June 30, 2025 1. Information Regarding Net Sales and Profit (Loss) in Each Reportable Segment (Millions of yen) Reportable Segment Total Adjustments (Note 1) Amount recorded in the semi-annual consolidated statement of income (Note 2) Japan Business China Business Singapore Business Americas and Europe Business Net sales Net sales to external customers 17,721 20,569 4,838 10,605 53,734 – 53,734 Internal sales or exchange between segments 755 704 2,361 7 3,829 (3,829) – Total 18,476 21,274 7,200 10,613 57,564 (3,829) 53,734 Segment profit 1,107 5,696 1,113 486 8,404 (1,719) 6,684 (Notes) 1. The negative amount of ¥ 1,719 million of adjustments to segment profit includes negative ¥22 million in elimination of intersegment transactions and negative ¥1,696 million in unallocated operating expenses. Unallocated operating expenses are expenses related to the Company’s administrative departments and other functions. 2. Segment profit is adjusted to operating profit in the semi-annual consolidated statement of income. II. Six months ended June 30, 2026 1. Information Regarding Net Sales and Profit (Loss) in Each Reportable Segment (Millions of yen) Reportable Segment Total Adjustments (Note 1) Amount recorded in the semi-annual consolidated statement of income (Note 2) Japan Business China Business Singapore Business Americas and Europe Business Net sales Net sales to external customers 18,619 23,348 4,777 12,232 58,977 – 58,977 Internal sales or exchange between segments 1,161 724 2,509 6 4,402 (4,402) – Total 19,780 24,072 7,287 12,239 63,379 (4,402) 58,977 Segment profit 1,744 6,136 1,059 928 9,869 (1,991) 7,878 (Notes) 1. The negative amount of ¥ 1,991 million of adjustments to segment profit includes negative ¥25 million in elimination of intersegment transactions and negative ¥1,965 million in unallocated operating expenses. Unallocated operating expenses are expenses related to the Company’s administrative departments and other functions. 2. Segment profit is adjusted to operating profit in the semi-annual consolidated statement of income. 2. Matters Related to Changes in Reportable Segments (Change in Segment Name) Effective from the first-half period under review, the reportable segment previously presented as the Lansinoh Business has been renamed the Americas and Europe Business. This is a change in segment name and does not affect the segment information. In addition, segment information for the corresponding first -half period of the previous year has been restated under the renamed segment name. (Notes Regarding Substantial Changes in Shareholders’ Equity) Not applicable. (Notes Regarding Going Concern Assumptions) Not applicable.