Financial Results for the Fiscal Year Ended December, Lion Corporation Itsuo Hama Representative Director and President, Executive Officer

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1 February 10, 2017 Financial Results for the Fiscal Year Ended December, 2016 Lion Corporation Itsuo Hama Representative Director and President, Executive Officer

4 2016 Consolidated Results Record-high sales and income (Millions of yen) Y-on-Y Change Amount % Difference from forecast Forecast as of the beginning of the year Revised forecast as of Nov. 4, 2016 Net Sales 395, ,659 16, ,606 (1.4%) +5,606 (1.4%) Operating Income 24,502 16,374 8, ,502 +1,000 % of Sales (36.1%) (4.3%) Ordinary Income 26,290 18,099 8, ,290 +1,290 % of Sales (38.4%) (5.2%) Profit attributable to owners of parent % of Sales 15, , , ,951 (45.0%) +951 (6.3%) EPS Copyright LION INC. All rights reserved 4

5 Y-on-Y Changes in Operating Income Income bolstered significantly by higher gross revenue and business restructuring (Billions of yen) Operating income for Sales, product mix and othres Total cost reduction efforts (manufacturing and logistics costs) Crude oil and vegetable oil prices Competition expenses Other expenses (8.3) (0.1) Operating income for Copyright LION INC. All rights reserved 5

Progress of the Medium-Term Management Plan Reached V-2 Plan targets a year early V-2 Target 2017 2015 2016 Net sales 400 bn. 378.6 bn.

6 Progress of the Medium-Term Management Plan Reached V-2 Plan targets a year early V-2 Target Net sales 400 bn bn bn. Target met under the V-2 Plan rate Operating income Operating income margin ratio 20 bn. 5% 16.3 bn bn. 4.3% 6.2% Sustainable income growth ROE 10% and more 8.5% 11.2% Capital efficiency up BEP Copyright LION INC. All rights reserved 90% and under 92% 89% Earning power up 6

7 Copyright LION INC. All rights reserved Results by Business Segment Major profit increases in both domestic and overseas businesses Consumer Products Industrial Products Net sales Segment income (operating income) Y-on-Y change Y-on-Y change Amount % Amount % 287, ,486 13, ,817 10,108 5, ,330 56,104 (1,774) (3.2) 2,560 1, Overseas 110, ,077 8, ,566 2,983 1, Other 26,867 29,166 (2,299) (7.9) (41) (4.3) Subtotal 479, ,835 18, ,859 15,660 8, Adjustment (83,553) (82,176) (1,377) (70) (9.9) Consolidated Total (Millions of yen) 395, ,659 16, ,502 16,374 8,

9 Topics:Oral care Category High-value-added products driving market growth 2016 year-on-year growth, sales basis (%) Lion products Entire Market Toothpastes Toothbrushes Dental rinse Denture products Oral care total Copyright LION INC. All rights reserved (Lion Survey) 9

10 Topics:Oral care Category Growth in mid-range and high-end products is boosting profitability 2016 year-on-year growth, sales basis (%) Lion products Entire market Toothpastes with a unit price of 500 or more Toothbrushes with a unit price of 250 or more + 25% + 5% + 8% + 4% (Lion Survey) Copyright LION INC. All rights reserved 10

year-on-year growth, sales basis Antipyretic Analgesic Smile40 Premium Up 9% Lion +7%

11 Topics: Pharmaceuticals Category Outpaced market growth due to expansion in high-value-added products Lion s sales growth rate (2016, YoY) BUFFERIN PREMIUM Up 24% 2016 year-on-year growth, sales basis Antipyretic Analgesic Smile40 Premium Up 9% Lion +7% Entire market +6% Eye drops Copyright LION INC. All rights reserved Lion +3% Entire market +1% (Lion Survey) 11

up: 10.7 billion A record high Copyright LION INC.

12 Topics: Wellness Direct Business Increase business scale and efficiency Sales of Food with function claims up: 10.7 billion A record high Copyright LION INC. All rights reserved Streamlined operations through cost cutting 12

13 Topics: Industrial Products Business Reinforcing the business foundation through selection and concentration 1.Chemical Products category Expansion of high-value-added product sales has increased profitability Efficiency up through business consolidation 2. Detergent for Institutional Use category Sales of detergents for kitchens were strong Hygiene management services field saw firm growth Segment operating income ratio: 2.9% 4.7% Copyright LION INC. All rights reserved 13

14 Topics: Overseas Business Accelerating business growth in mainstay countries Year-on-year sales growth (Jan. Dec.), local currency basis All categories Personal Care category Thailand +9% +10% Malaysia +14% +15% South Korea +13% +13% China +23% +20% Copyright LION INC. All rights reserved 14

16 Business Environment for 2017 Greater uncertainly expected Domestics Asia Raw material prices/ currency Copyright LION INC. All rights reserved Expected external conditions Continued gradual economic recovery, but increased uncertainty Concern about weak growth Raw material prices up year on year; volatile exchange rates Impact on results Business and cost environments are both expected to grow harsher 16

17 2017 Consolidated Financial Forecast Double-digit operating income growth; record high for a fourth consecutive year 2017 Forecast 2016 (Millions of yen) Y-o-Y Change 2017 Y-o-Y H Change 1H Amount (%) Forecast Amount (%) Net Sales 405, ,606 9, , ,248 3, Operating Income % of Sales 27, , , , , Ordinary Income % of Sales Profit attributable to owners of parent % of Sales 28, , , , ,709 1, , , , , EPS (yen) Copyright LION INC. All rights reserved 17

18 Approach to Shareholder Returns 1. Our Stance on Shareholder Returns Ensure stable and sustainable returns. Aiming for a 30% consolidated payout ratio. 2.Fiscal 2016 Dividend Forecast Annual dividend of 15 per share, up 2 year on year (interim dividend of 7 and year-end dividend of 8) Dividends to increase for a second consecutive year Copyright LION INC. All rights reserved 18

Finishing the V-2 Plan Reinforcing market position domestically and overseas Basic

Operating income ratio V-1 Plan Rebuild the profit structure V-2 Plan Accelerate

2014 2015 2016 2017 2018 2019 2020 Forecast Target 2.2% 3.1% 3.4% 4.3% 6.2% 6.

20 Finishing the V-2 Plan Reinforcing market position domestically and overseas Basic Policy Preparing for the V-3 Plan Laying the foundations for our growth strategies Operating income ratio V-1 Plan Rebuild the profit structure V-2 Plan Accelerate profit structure reforms V-3 Plan Further accelerate business growth Forecast Target 2.2% 3.1% 3.4% 4.3% 6.2% 6.7% 10% Copyright Copyright Lion LION Corporation. INC., All All rights rights reserved. 20

21 Domestic: Reinforcing Our Market Position Copyright LION INC., All rights reserved. 21 Expanding empathetic marketing Shifting from a focus on things to a focus on experiences Reinforcing digital approaches New products in spring 2017

22 Domestic: Reinforcing Our Market Position Copyright Copyright Lion LION Corporation. INC., All All rights rights reserved. 22 Linking channels to reinforce area operations Iwate Hiroshima Ehime Shizuoka Alliance with other companies to reinforce offerings in various categories

23 Overseas: Expanding Our Market Position Copyright Copyright Lion LION Corporation. INC., All All rights rights reserved. 23 Expanding Lionʼs global brands Shokubutsu Monogatari Malaysia Systema (China) Accelerating shift toward personal care KODOMO (Thailand)

24 Overseas: Expanding Our Market Position Copyright Copyright Lion LION Corporation. INC., All All rights rights reserved. 24 Reinforcing e-commerce channels Seeking expansion into new areas

25 Copyright Copyright Lion LION Corporation. INC., All All rights rights reserved. 25 Preparing for the V-3 Plan

26 Copyright Copyright Lion LION Corporation. INC., All All rights rights reserved. 26 Aiming to Be a Next-Generation Healthcare Company Providing care and cures for all life stages Providing individually tailored solutions

27 Marketing Innovation Business Innovation Becoming a Next-Generation Healthcare Company Advanced IoT applications Big data Real time Lifelogging Technological Innovation Speed Analytics Copyright Copyright Lion LION Corporation. INC., All All rights rights reserved. 27

29 Reference Materials

30 Consolidated Statements of Income (Millions of yen) Y-o-Y Change Amount (%) Net sales 395, ,659 16, Cost of sales 161, ,435 (442) (0.3) Gross profit 233, ,223 17, Selling, general and administrative expenses 209, ,848 9, Operating Income 24,502 16,374 8, Non-operating income 2,286 2,454 (168) (6.9) Non-operating expenses (230) (31.6) Ordinary income 26,290 18,099 8, Extraordinary income 31 7,923 (7,892) (99.6) Extraordinary loss 2,286 6,635 (4,349) (65.5) Profit before income taxes 24,035 19,387 4, Income taxes current 7,319 5,896 1, Income taxes - deferred (684) 1,485 (2,170) - Profit 17,400 12,005 5, Profit attributable to owners of parent 15,951 10,680 5,

31 Selling, General and Administrative Expenses Selling, general and administrative expenses Sales commission expenses Millions of Yen (Millions of yen) Change % of sales Millions of Yen % of sales Millions of yen % of sales 209, , , , , Promotion expenses 90, , , Provision for promotion expenses 2, , Advertising expenses 30, , , Transportation and warehousing expenses 17, , Salaries and allowances 14, , Research and development expenses 10, , Other 34, , (181) (0.5) 31

32 Significant Extraordinary Income or Loss Extraordinary income Gain on disposal of noncurrent assets - Gain on sales of investment securities 31 Gain on contribution of securities to retirement benefit trust - (Millions of yen) Gain on disposal of noncurrent assets 629 Gain on sales of investment securities 210 Gain on contribution of securities to retirement benefit trust 6,736 Other - Other 346 Total 31 Total 7,923 Extraordinary loss Loss on disposal of noncurrent assets 542 Loss on disposal of noncurrent assets 1,897 Impairment loss 1,114 Impairment loss 4,479 Loss on valuation of investment securities - Loss on valuation of investment securities 15 Other 628 Other 242 Total 2,286 Total 6,635 32

33 Balance Sheets (Selected) I (Millions of yen) Change Current assets 185, ,830 18,638 Cash and deposits 17,879 18,584 (704) Notes and accounts receivable-trade 60,293 58,655 1,637 Short-term investments 61,007 45,919 15,087 Inventories 39,726 37,554 2,171 Noncurrent assets 113, ,603 (2,562) Property, plant and equipment 74,402 75,060 (658) Intangible assets 2,822 5,921 (3,098) Investments and other assets 35,815 34,622 1,193 Total assets 298, ,434 16,075 33

34 Balance Sheets (Selected) II (Millions of yen) Change Current liabilities 123, ,247 2,192 Notes and accounts payable-trade 50,947 49,620 1,326 Short-term loans payable 4,244 9,772 (5,527) Current portion of long-term loans payable Accounts payable-other and accrued expenses 51,979 47,521 4,457 Noncurrent liabilities 17,190 18,455 (1,264) Bonds with subscription rights to shares 0 2,426 (2,426) Long-term loans payable 1,690 2,082 (391) Net defined benefit liability 10,446 8,751 1,695 Total Net assets 157, ,730 15,148 Retained earnings 82,479 69,414 13,064 Treasury stock (4,778) (6,800) 2,021 Accumulated other comprehensive income 2,640 3,375 (735) Total liabilities and net assets 298, ,434 16,075 34

35 Cash Flow (Millions of yen) Change Net cash provided by (used in) operating activities 32,269 35,539 (3,269) Net cash provided by (used in) investment activities (7,845) (6,974) (871) Net cash provided by (used in) financing activities (7,437) (5,062) (2,374) Effect of exchange rate change on cash and cash equivalents (526) (374) (151) Net increase (decrease) in cash and cash equivalents 16,461 23,128 (6,667) Cash and cash equivalents at beginning of period 61,278 38,150 23,128 Cash and cash equivalents at end of period 77,739 61,278 16,461 35

36 Results by Business Segment Net sales and sales to external customers 2016 (Millions of yen) Segment income (operating income) Net Sales Y-on-Y change Y-on-Y change 2016 Amount % Amount % Consumer Products Industrial Products Overseas 287,028 13, ,305 13, ,330 (1,774) (3.2) 31, ,933 8, ,285 5, ,817 5, , ,566 1, ,867 (2,299) (7.9) Other 915 (41) (4.3) 3,619 (2,352) (39.4) Subtotal 479,159 18, ,859 8, Sales to external customers total 395,606 16, ,502 8, Upper line: Sales; Lower line: Sales to external customers Operating income: Subtotal represents segment income before offsetting inter-company transactions; consolidated total represents consolidated segment income 36

37 Sales Results by Products Category Consumer Products Business Y-on-Y change (Millions of yen) Amount % Oral Care 63,596 59,414 4, Beauty Care 22,333 19,885 2, Fabric Care 80,240 77,985 2, Living Care 20,763 20,971 (207) (1.0) Pharmaceutical 40,958 38,754 2, Other 59,135 56,475 2, Total 287, ,486 13,

38 Overseas Sales Results by Region (Millions of yen) Y-on-Y Change Amount (%) Southeast Asia Northeast Asia 75,544 67,614 7, ,389 34, Total 110, ,077 8, Southeast Asia :Thailand, Malaysia, Singapore, Indonesia (PT. IPPOSHA INDONESIA) and Philippines Northeast Asia :South Korea, China, Taiwan and Hong Kong 38

39 2017 Consolidated Financial Forecast By business segment Sales to external customers 2017 Forecast 2016 (Millions of yen) Y-o-Y Change 2017 Y-o-Y Change H 1H Amount (%) Forecast Amount (%) Consumer Products Industrial Products 264, ,305 2, , ,597 1, ,000 31, ,500 15, Overseas 106,000 99,285 6, ,500 49,182 2, Other 3,000 3,619 (620) (17.1) 1,000 1,265 (265) (21.0) Total 405, ,606 9, , ,248 3,

40 Capital Expenditures and Depreciation Expenses (Billions of yen) Capital expenditures Depreciation expenses Jul-Dec Jan-Jun plan plan Note: Both capital expenditures and depreciation expenses include amounts for intangible assets. 40

41 Changes in Home Products and OTC Drug Markets Home Products Market Data Market trend of the total of 38 home product markets in which Lion participates. (percentage change over the year-ago period.) Sales value Unit sales Average unit price Year-on-year data for is for the 42 home product markets in which Lion operates. Data for is for 40 and 2015 is for 39 such markets OTC Drug Market Data Market trend of the total of 8 OTC drug markets in which Lion participates. (percentage change over the year-ago period.) Sales value Unit sales Average unit price Source: INTAGE Inc. SDI Survey 41

42 Assumptions for Raw Material Prices and Currency Raw material prices Crude oil (Dubai) Domestic naphtha Crude palm oil 2017 forecasts USD52/BBL JPY38,000/KL MYR3,000/ton Currency 2017 forecasts US Dollar Thai Baht Korean Won JPY112.0 JPY3.2 JPY0.095 Domestic market environment Household products market: Slight rise in unit prices, flat sales volumes, slight rise in total sales OTC drug market: Slight rise in unit prices, slight drop in sales volume, flat total sales 42

43 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. Accordingly, readers are cautioned that actual results may differ materially from those projected as a result of a variety of factors. Note: Figures are rounded down to the digits that are displayed. 43

Financial Results for the First Nine Months of 2018

Financial Results for the First Nine Months of Lion Corporation November 5, 1 1. Financial Results for the Nine Months Ended September 30, (IFRS) (Billions of yen) Jan. Sep. 2017 Y-o-Y change Amount %