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 operates under the supervision of the President and CEO. The Committee is chaired by the President and Representative Director (or a delegated Executive/Business Officer) and consists of Risk Owners appointed by the Chairperson. 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 Americas & Europe 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 primarily addressed by Risk Owners appointed by the Chairperson of the GHO Risk Management Committee. The GHO Risk Management Committee reviewed Key Risks and added “Human Rights” in 2024 and “Business Management & Subsidiary Control” in 2025.
These Risk Owners 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

Chairperson：	Nobuo Takubo	Director, Executive Officer, Chief Strategy Officer
Committee Members　：	Minako Hara	Group Executive Officer Chief Human Resources Officer
	Yusuke Nakata	Group Executive Officer Chief Branding Officer
	Zenzou Yamaguchi	Group Executive Officer, Japan Business Unit Chief Executive Officer
	Koji Matsutori	Group Executive Officer, Singapore Business Unit Chief Executive Officer
	Zhou Jianfeng	Group Executive Officer, China Business Unit Chief Executive Officer, CEO of PIGEON （SHANGHAI）CO.,LTD.
	Julie Talbot	Group Executive Officer, Americas & Europe Business Unit Chief Executive Officer / CEO of Lansinoh Laboratories, Inc.

Risk Owners As shown in the table below

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

Key Risks	Risk Owners
Compliance	Head of Legal Department
Financial	Head of Accounting & Finance Department
Business Management & Subsidiary Control	Head of Business Strategy Department
Human Rights	Chief Human Resources Officer
Information Security	Head of Information Systems Department
Supply Chain Management (SCM)	SCM Division Manager
Customer Complaints	Head of Customer Service Department

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

10th February 27, 2026