Establishing Solid Management Foundations

What We Aim to Achieve

Reinforcing our GHO/4SBU structure and enhancing our corporate governance framework to encourage ambitious endeavors to boost corporate value over the medium to long term

Individual Issues

  • The Pigeon Group comprises Pigeon Corporation and 26 consolidated subsidiaries. The Global Head Office (GHO) oversees all Group companies and four core business segments: Japan Business, China Business, Singapore Business, and Lansinoh Business. We view strengthening Group governance as a key issue that is essential for enhancing growth and profitability over the medium to long term. Critical challenges include ensuring governance functions effectively on both the “offensive” and “defensive” sides of management, optimizing the business portfolio, and enhancing the overall effectiveness of Group governance.

  • Reinforcing Group governance
  • The Pigeon Group has been implementing compliance-related measures with a focus on the following three pillars: 1) Formulate (revise) and implement compliance-related rules, 2) compliance education, and 3) compliance monitoring. We are examining and implementing these measures to 1) prevent compliance violations and 2) detect and resolve compliance violations as soon as possible.

  • Reinforcing compliance
  • The Pigeon Group has formulated the Rules for Risk Management, which systematically stipulate the Pigeon Group's risk management responses, and are committed to effective risk management. We have established a framework that facilitates the collection of risk-related information across the entire Group, implements necessary controls, and enables swift response to risk issues by each segment.

  • Reinforcing risk management
  • The Pigeon Group considers its customers, suppliers, government and local governments, local communities, employees, and shareholders as stakeholders who are deeply involved in its business activities. Based on the opinions and evaluations obtained through active communication with various stakeholders, we strive to identify issues and reflect them in our business activities in order to promote higher quality activities and enhance corporate value.

  • Dialogue with stakeholders

Targets and Progress

Individual issues 8th Medium-Term Business Plan Targets (2025) 2025 Progress
Action/Review

Reinforcing group governance

・Promoting cash flow management
    Improvement of CCC (Cash Conversion)

・CCC: 126.5 days in FY2025

Reinforcing compliance

・Promotion of improvement measures based on the results of compliance monitoring conducted in 2023
・Implementation of compliance training across the entire group

・Implementation of compliance monitoring across the entire group and consideration and implementation of improvement measures based on the results of that monitoring.

・Implementation of compliance training across the entire group

Reinforcing risk management

・Convene the GHO Risk Management Committee at least once a year
・Implement Group-wide risk assessments annually

・Held the GHQ Risk Management Committee twice.
・Reviewed key risks at the GHQ Risk Management Committee and added "Business Management & Subsidiary Control" as a new key risk.
・Conducted a company-wide risk assessment.

Dialogue with stakeholders

・Engage in dialogue with the capital markets and focus on the recovery and growth of Pigeon Value Added (PVA) to enhance corporate value

・To proactively engage in dialogue with capital markets, we conducted approximately 250 diverse meetings annually with institutional investors and analysts both in Japan and overseas. Through these meetings, we deepened multifaceted engagement on primary themes of interest, including recent financial results, the direction of the next Mid-Term Business Plan, capital efficiency enhancement measures involving collaboration with Japan Activation Capital, and sustainability.

・To drive the further recovery and growth of Pigeon Value Added (PVA)—our proprietary performance indicator—we further advanced management with a strong awareness of capital costs and stock price. This was achieved by executing profitability improvement strategies, reducing working capital (including inventory levels), optimizing our business portfolio utilizing PVA, and integrating various performance and stock price indicators into our executive compensation calculation criteria.

Reinforcing group governance

8th Medium-Term Business Plan Targets (2025)
・Promoting cash flow management
    Improvement of CCC (Cash Conversion)

2025 Progress/Action/Review

・CCC: 126.5 days in FY2025


Reinforcing compliance

8th Medium-Term Business Plan Targets (2025)

・Promotion of improvement measures based on the results of compliance monitoring conducted in 2023

・Implementation of compliance training across the entire group

2025 Progress/Action/Review


Reinforcing risk management

8th Medium-Term Business Plan Targets (2025)

・Convene the GHO Risk Management Committee at least once a year

・Implement Group-wide risk assessments annually

2025 Progress/Action/Review

・Held the GHQ Risk Management Committee twice.

・Reviewed key risks at the GHQ Risk Management Committee and added "Business Management & Subsidiary Control" as a new key risk.

・Conducted a company-wide risk assessment.


Dialogue with stakeholders

8th Medium-Term Business Plan Targets (2025)

・Engage in dialogue with the capital markets and focus on the recovery and growth of Pigeon Value Added (PVA) to enhance corporate value

2025 Progress/Action/Review