Lion : Summary of Consolidated Financial Statements for the First Quarter Ended March 31, 2021

Summary of Consolidated Financial Statements for the First Quarter Ended

March 31, 2021 [IFRS]

May 10, 2021

Company name: Lion Corporation

Listed stock exchanges: Tokyo Stock Exchange

Code: 4912

URL: http://www.lion.co.jp/

Representative: Masazumi Kikukawa, Representative Director, President and Executive Officer

Contact: Akihiko Takeo, Director of Finance Department

Telephone: [phone]

Scheduled date of filing of quarterly financial report: May 13, 2021

Supplementary materials prepared for quarterly results: Yes

Quarterly results information meeting held: Yes (for institutional investors, analysts, etc.)

Figures in this and subsequent tables are truncated at the nearest million.

1. Consolidated Results for the First Quarter Ended March 31, 2021 (January 1, 2021 - March 31, 2021)

1. Consolidated Results (cumulative)

(Percentage figures denote year-on-year change)

	Net sales		Operating profit		Profit before tax
	Millions of yen		%	Millions of yen	%		Millions of yen	%
Three months ended	82,456		(0.1)	8,281	(55.8)	8,849	(53.6)
March 31, 2021
Three months ended	82,555		4.6	18,733	214.7	19,076	212.5
March 31, 2020
				Profit for the period		Total comprehensive
	Profit for the period	attributable to
		income for the period
				owners of the parent
	Millions of yen		%	Millions of yen	%		Millions of yen		%
Three months ended	6,414		(54.2)	5,955	(56.1)		9,775		69.7
March 31, 2021
Three months ended	14,018		249.8	13,559	294.0		5,760		(2.5)
March 31, 2020

Note: Core operating income for the three months ended March 31, 2021 was ¥8,090 million (down 11.0% year on year). Core operating income for the three months ended March 31, 2020 was ¥9,093 (up 63.5% year on year).

Core operating income is an earnings indicator the Company uses to measure regular business performance and is calculated by subtracting selling, general and administrative expenses from gross profit.

	Basic earnings per share	Diluted earnings per share
	Yen	Yen
Three months ended	20.49	20.45
March 31, 2021
Three months ended	46.64	46.58
March 31, 2020

1. Consolidated Financial Position

			Equity	Ratio of equity
			attributable to
			attributable to
	Total assets	Total equity	owners of the
	owners of the
			parent to total
			parent
			assets
	Millions of yen	Millions of yen	Millions of yen	%
Three months ended	403,150	251,181	237,210	58.8
March 31, 2021
Three months ended	435,501	244,856	231,723	53.2
March 31, 2020

2. Dividends

		Cash dividends per share
	First	Second	Third		Year-End		Total
	Quarter	Quarter	Quarter
	Yen	Yen	Yen		Yen		Yen
Fiscal 2020	-	11.00	-		12.00		23.00
Fiscal 2021	-		-
Fiscal 2021	-	12.00	-		12.00		24.00
(forecast)
Note: Changes from the most recently published forecast of dividends: No 3. Forecast of

Consolidated Financial Results for the Fiscal Year Ending December 31, 2021 (January 1, 2021 - December 31, 2021)

(Percentage figures denote year-on-year change)

	Net sales		Operating profit	Profit for the period	Basic earnings per
		attributable to owners of
		share
							the parent
	Millions of yen		%	Millions of yen		%	Millions of yen		%	Yen
First half 2021	173,000		2.3	11,500		(55.7)	8,000		(57.0)	27.52
Fiscal 2021	365,000		2.7	30,000		(31.9)	21,000		(29.7)	72.24
Notes: 1.Core operating income forecast: First half 2021: ¥11,500 million
				Fiscal 2021:	¥30,000 million
2. Changes from the most recently published financial results forecast: No

Notes

1. Significant Change in Scope of Consolidation during Period: No
2. Changes in accounting principles, procedures and presentation methods in connection with the preparation of quarterly consolidated financial statements:
3. 1. Changes in accounting standards required under IFRS: No
   2. Other changes: No
   3. Changes in accounting estimates: No
4. Number of outstanding shares (common stock)
   a. Number of outstanding shares on balance sheet dates (including treasury stocks):

As of March 31, 2021:	299,115,346 shares
As of December 31, 2020:	299,115,346 shares

1. Number of treasury stocks on balance sheet date:

As of March 31, 2021:	8,392,874 shares
As of December 31, 2020:	8,399,357 shares

1. Average number of shares outstanding over period

Three months ended March 31, 2021:	290,718,407 shares
Three months ended March 31, 2020:	290,709,635 shares

• This report is not subject to review by a certified public accountant or external auditor.
• Appropriate use of results forecasts; other special items

The forecasts and projected operating results contained in this report are based on information available at the time of preparation and thus involve inherent risks and uncertainties, including those related to economic conditions, the competitive environment and exchange rate fluctuations. Accordingly, readers are cautioned that actual results may differ materially from those projected as a result of a variety of factors. For information on forecasts of operating results, see I. Qualitative Information Concerning the Results of Operations for the First Quarter of the Current Fiscal Year (3) Forecast of Consolidated Financial Results on page 8.

	Lion Corporation (Code 4912): Consolidated Financial Statements
	for the First Quarter Ended March 31, 2021
Contents
1. Qualitative Information Concerning the Results of Operations for the First Quarter of the Current
Fiscal Year -----------------------------------------------------------------------------------------------------------------------	2
(1)	Consolidated Performance -------------------------------------------------------------------------------------------	2
(2) Financial Status ---------------------------------------------------------------------------------------------------------	7
(3)	Forecast of Consolidated Financial Results ---------------------------------------------------------------------	8
2. Condensed Consolidated Financial Statements and Notes ----------------------------------------------------	9
(1)	Condensed Consolidated Statement of Financial Position -------------------------------------------------	9
(2)	Condensed Consolidated Statement of Income and Statement of Comprehensive Income	---- 11
(3)	Condensed Consolidated Statement of Changes in Equity ---------------------------------------------	13
(4)	Notes to Condensed Consolidated Financial Statements -----------------------------------------------	15
Notes relating to the assumption of a going concern ----------------------------------------------------------------------------	15
Segment Information ---------------------------------------------------------------------------------------------------------------------	15

1

Lion Corporation (Code 4912): Consolidated Financial Statements for the First Quarter Ended March 31, 2021

1. Qualitative Information Concerning the Results of Operations for the First Quarter of the Current Fiscal Year

(1) Consolidated Performance

Consolidated results for the first quarter of fiscal 2021 (January 1, 2021-March 31, 2021) are as follows. Net sales amounted to ¥82,456 million, a year-on-year decrease of 0.1% (or 0.9% at constant currency excluding exchange rate fluctuations). Core operating income came to ¥8,090 million, down 11.0% compared with the previous fiscal year, and operating profit to ¥8,281 million, down 55.8% year on year. Profit for the period attributable to owners of parent totaled ¥5,955 million, down 56.1% compared with the previous fiscal year.

Under Vision2030, its new long-term strategic framework, the Lion Group advanced initiatives to address its Sustainability Material Issues as well as measures based on three growth strategies. These strategies are "Accelerate growth in four fields of value creation," "Transform our business foundations for growth" and "Generate dynamism to realize innovative change." At the same time, with no end to the novel coronavirus (COVID-19) pandemic in sight, the Lion Group has been making every effort to prevent the spread of the virus and ensure the safety of its employees while focusing efforts on promoting the establishment of good hygienic habits.

In its domestic operations, Lion introduced such new products as toothpastes, hygiene-related products, fabric softeners, dishwashing detergents and dermatologic agents and worked to cultivate markets for these products through efficient marketing.

In its overseas operations, in addition to efforts to expand its business in the personal care field, which includes oral care and beauty care products, the Group sought to bolster its competitiveness and profitability in the home care field, which includes such products as laundry detergents.

Consolidated Results					(Millions of yen)
		Three months	Ratio to	Three months	Ratio to		Change
		ended March 31,	ended March 31,	Change
		net sales	net sales	(%)
		2021	2020
	Net sales	82,456		82,555		(98)	(0.1%)
	Core operating income	8,090	9.8%	9,093	11.0%	(1,003)	(11.0%)
	Operating profit	8,281	10.0%	18,733	22.7%	(10,452)	(55.8%)
	Profit for the period
	attributable to owners of	5,955	7.2%	13,559	16.4%	(7,603)	(56.1%)
	the parent

Note: Core operating income is an earnings indicator the Company uses to measure regular business performance by subtracting selling, general and administrative expenses from gross profit.

2