Pigeon Group Risk Management Policy

To realize Pigeon’s Purpose, “We want to make the world more baby-friendly by furthering our commitment to understanding and addressing babies’ unique needs,” the Pigeon Group (“the Group”) sees it as important to be a corporate group capable of appropriately managing and addressing the various risks around its business, and as such includes risk management in its Key Issues (Materiality) as an Individual Issue within “Establishing Solid Management Foundations.”

Based on this Risk Management Policy (“this policy”), the Group will pursue risk management as a solid foundation for business continuity.

1.Fundamental Approach to Risk Management

The Group defines uncertainties with a major impact on achieving management goals and corporate continuity as “risks,” actualization of these risks as “incidents,” and things that have a major impact on the Group’s business and require urgent responses as “crises.” The Group’s fundamental approach to risk management is to keep risks within acceptable bounds by working to reduce them and prevent incidents before they arise. As a Group that supplies products and services essential for pregnancy, childbirth, childrearing, and care, we aim to achieve both sustainable growth and continuity of supply for our products and services by considering both threats and opportunities with significant impacts on our business activities as we address risks.

2.Risk Management Initiatives

In order to respond to the various risks and changes in the environment surrounding the Group, the Group establishes risk management systems and procedures as needed, with reference to the approach found in ISO 31000 (Risk Management).

3.Framework

To clarify the Group’s risk management framework, the Group will establish separate Risk Management regulations. To reinforce risk management across the entire Group, the Group will strive to monitor overall risk information and respond swiftly and appropriately via Risk Management Committees (GHO and BUs).

4.Communication and Training

The Group will share this policy with and offer training to all directors and employees to ensure that risk management is incorporated into the business activities of all Group companies.

5.Information Disclosure

The Group will disclose its progress on risk management initiatives based on this policy, including results, via website, reports, and other means deemed appropriate.

Formulated: November 25, 2024

Risk Management System / Activities

Governed by the Rules for Risk Management, which systematically stipulate the Group’s risk management responses the Global Head Office (GHO) Risk Management Committee is chaired by the director for GHO, under the supervision of the president and CEO. Directly below the GHO Risk Management Committee are the Risk Management Committees of each business segment, which are chaired by the head of operations in each segment (Japan Business, China Business, Singapore Business, and Lansinoh Business). This framework enables information about risk to be collected across the entire Group, provides necessary controls, and empowers each segment to respond rapidly to risk issues. The GHO Risk Management Committee reports the details and the results of responses made to the Board of Directors, as necessary.

Organizational Chart of Risk Management Committee

Risk Management Activities

The GHO Risk Management Committee systematically collects, analyzes, and evaluates the risk information it gathers from throughout the Group, centered on the risk information it collects from each business segment. On its own or through the respective business segments, the GHO Risk Management Committee then examines and implements response measures. In particular key risks are being addressed primarily by the departments in charge of risk as nominated by the GHO Risk Management Committee. These departments collate information and examine and implement measures across the Group. In addition, in order to manage risk throughout the Pigeon Group, we review risk annually through risk assessments, while striving to reduce risk and prevent the occurrence of major risks.

In the event of a crisis to the Group, such as a large-scale disaster, the Risk Management Committee promptly convenes in accordance with the Risk Management Regulations or the Business Continuity Plan (BCP), and respond to minimize losses and restore operations. In the event of a serious risk or incident, the GHO Risk Management Committee reports to the Board of Directors on the details and results of the response, as appropriate.

Committee Members of The GHO Risk Management Committee

Chair：	Tadashi Itakura	Director, Senior Managing Executive Officer Head of Global Head Office
Committee Members　：	Kevin Vyse-Peacock	Director, Executive Officer Lansinoh Business Division Manager/ CEO of Lansinoh Laboratories, Inc.
	Yusuke Nakata	Senior Managing Officer Singapore Business Division Manager/ Representative Director of PIGEON SINGAPORE PTE. LTD.
	Zenzou Yamaguchi	Senior Managing Officer Head of Japan Operations Baby Care Business Division Manager
	Joe Zhou	CHINA BUSINESS DIV. President & Managing Officer/ PIGEON SHANGHAI CO.,LTD President
	Nobuo Takubo	Managing Officer, Business Strategy Division Manager

Key Risks and Risk Owners monitored by the GHO Risk Management Committee

Key Risks	Risk Owners
Compliance	Legal Department
Financial	Accounting ＆ Finance Division
Information Security	Systems Consulting Department
Supply Chain Management (SCM)	Supply Chain Management Division
Customer Complaint	Customer Service Center
Human Rights	Business Strategy Division

Risk Management Methods

We have established a PDCA cycle and conduct risk management activities throughout the year.

Activities of the GHO Risk Management Committee

Number of meetings	Twice a year
Reports to the Board of Directors	Once a year
Activities	-Sharing of information on Group risks and incidents -Formulation of measures mitigating key risks and management of progress -Reporting on the results of risk assessments conducted and risk mitigation measures  across the entire Group

The GHO Risk Management Committee meetings

7th Sep 3, 2024