Lion : Financial Results for the First Quarter Ended March 31, 2021

Financial Results

for the First Quarter

Ended March 31, 2021

Lion Corporation

May 10, 2021

Consolidated Performance Overview

Y-o-Y decreases in 1Q sales and profit

• Net sales were mostly level Y-o-Y

・In the Consumer Products Business, sales of hand soaps and other products decreased due to recoil from the previous year

・Sales in the Overseas Business increased as sales remained strong in China, while sales in the Industrial Products Business increased due to market recovery

• Core operating income decreased Y-o-Y

・Gross profit decreased Y-o-Y due in part to changes in the sales mix

• Operating profit decreased Y-o-Y

・Decreased in part due to recoil from a gain on transfer of non-current

assets (land Lion's head office occupies) recorded in 2020

2

Market Trends-Major Product Categories in Japan

Y-o-Y comparison of consumer products markets in Japan by in-store sales value (%)

■Oral Care

■Beauty Care

Toothpaste

Hand soaps

Toothbrushes

Body soaps

■Living Care	■Pharmaceutical
Household cleaners	Antipyretic analgesics

Source: INTAGE Inc. SRI＋ survey

■Fabric Care

Fabric softeners

Laundry detergents

From January to March, many markets saw Y-o-Y declines attributable to significant recoil from demand growth in the previous year due to

Dishwashing detergents

Eye drops

COVID-19.

*For reference, Y-o-Y comparison with 2019 is shown in dotted lines for January to March

"Household cleaners" above is the sum of home cleaners, bath detergents and bathroom detergents.

Market Trends-Major Product Categories Overseas

Y-o-Y comparison of overseas markets (%) (Jan. 2020-Feb.2021)	Source: Nielsen
■ Hand Soaps	■ Laundry Detergents

Malaysia

Thailand

South Korea

Thailand

South Korea

*Data for Malaysia is for the entire soap market, including hand soaps

Sales value by country and category compared with 2020 (Jan.-Feb.2021)

	Thailand	Malaysia	South
	Korea
Hand soaps	１07％	９１％	57％
Laundry	８９％	９０％	９０％
detergents

Malaysia

Sales value by country and category compared with 2019 (Jan.-Feb.2021)

	Thailand	Malaysia	South
	Korea
Hand soaps	１７０％	２７５％	１４7％
Laundry	８８％	８９％	８１％
detergents
			4

Market Trends

			Period: Jan.-Mar. 2021; Source: INTAGE Inc. SRI+
		Aggregate of 38	Sales value fell 8% year on year, reflecting a decrease in the sales volume of such products as
		Home Products	hand soaps and household cleaners due to recoil from the previous year
		Markets
		Oral Care	✔ Toothpaste unit prices sales increased, reflecting increased hygiene awareness, but sales
		volume decreased (sales value down 3% Y-o-Y)
			✔ Toothbrush unit prices rose, but sales volumes fell, reflecting thriftier consumer mindsets
			(sales value down 7% Y-o-Y)
		Beauty Care	✔ The hand soap market shrank significantly due to recoil from expansion in 2020 (sales value down
			36% Y-o-Y)
		Fabric Care	✔ Laundry detergents and fabric softeners saw lower sales volumes but significantly higher unit
		prices due to a shift to larger size products (laundry detergent sales value up 2% Y-o-Y; fabric softener sales
			value up 0% Y-o-Y)
		Living Care	✔ Dishwashing detergent sales volumes were level year on year, but unit prices rose due to a shift to
		larger size products (sales value up 4% Y-o-Y)
			✔ Household cleaner sales volumes fell due to recoil from the previous year (total sales value of home
			cleaners, bath detergents and bathroom detergents down 2% Y-o-Y)	Period: Jan.-Feb. 2021; Source: Nielsen
		Aggregate of Key	Hand soap demand continue to grow in Thailand, but laundry detergent markets shrank
		Overseas Markets	across the board
		Hand soaps	✔ In South Korea, sales value was down 43% year on year
		✔ In Thailand, sales value was up 7% year on year
			✔ In Malaysia, sales value was down 9% year on year
		Laundry	✔ Sales value was down 10% year on year in South Korea, reflecting a new wave of COVID-19 and
		sluggish consumption
		detergents
		✔ Sales volume was down 11% year on year in Thailand, as consumption remained sluggish
			✔ Sales value was down 10% year on year in Malaysia, despite recovery in late 2020	5