Press Release

Notice Concerning Revisions to Full-Year Financial Results Forecasts
January 30, 2023
Listed exchanges: Prime Market

Listed company name: Earth Corporation

Code: 4985

URL

: https://corp.earth.jp/en/index.html

Representative Director: Katsunori Kawabata, President & Representative Director

Contact: Tsuyoshi Mitsuzuka ,Senior Executive Officer
Director General
Group Management Headquarters

Tel: +81-3-5207-7458

Earth Corporation (the “Company”) hereby announces that in light of the most recent operating trends, adecision was passed at the meeting of the Board of Directors held on January 30, 2023, to revise the financial
results forecasts for the fiscal year ending December 31, 2022 (January 1, 2022 through December 31, 2022),
as described below.
Revision of Full-Year Earnings Forecasts(1) Revisions to consolidated financial results forecasts for the current fiscal year (January 1, 2022 throughDecember 31, 2022)(millions of yen)

Forecast previously
announced (A)Revised forecast (B)Consolidated
net sales

Consolidated
operating profit

Consolidated
ordinary profit

Profitattributable toowners ofparent

Consolidated
earnings pershare (yen)155,00010,750

11,1507,280

330.30240.30152,300

7,400

8,100

5,300

Change (B-A)-2,700-3,350-3,050-1,980Rate of change (%)-1.7%-31.2%-27.4%-27.2%

203,785

10,667

11,362

7,142(Ref.) Actual consolidated
results for the previous
fiscal year
(Fiscal year ended Dec
31, 2021)

323.76*Effective from the beginning of the fiscal year ending December 31, 2022, the Company has adopted the "AccountingStandard for Revenue Recognition" (ASBJ Statement No. 29) and others. Therefore, the accounting treatment ofrevenue differs from that of the previous consolidated fiscal year shown in the reference column.

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(2) Revisions to non-consolidated financial results forecasts for the current fiscal year (January 1, 2022
through December 31, 2022)(millions of yen)
Consolidated
net sales

Consolidated
operating profit

Consolidated
ordinary profit

Profitattributable toowners ofparent

Consolidated
earnings pershare (yen)

――

―

―

―
140.55

Forecast previously
announced (A)Revised forecast (B)76,500

3,800

4,500

3,100

Change (B-A)

――

―

―

Rate of change (%)――――

128,299

8,311

9,012

6,309

(Ref.) Actual consolidated
results for the previous
fiscal year
(Fiscal year ended Dec
31, 2021)

286.00*Effective from the beginning of the fiscal year ending December 31, 2022, the Company has adopted the "AccountingStandard for Revenue Recognition" (ASBJ Statement No. 29) and others. Therefore, the accounting treatment ofrevenue differs from that of the previous consolidated fiscal year shown in the reference column.

(3) Reasons for RevisionA)

Net sales
In Japan, the market size of insecticides & repellents, the main source of revenue, was lower thanprojected at the time of planning due to the effects of unseasonable weather and other factors. Inparticular, the market for flies and mosquitoes, the largest category, was sluggish, affecting salesof mainstay products such as "Earth Normat". In addition, the volume of product returns afterOctober, when the demand season has passed, was higher than expected, putting pressure onearnings. Thanks in part to the steady contribution of new high-priced products "Mamoroom" and"Zero de KNIGHT" launched during the period, our market share was higher than the previous year,
but overall sales of insecticides & repellents are expected to fall short of the plan.
As for daily necessities, sales of deodorizing air fresheners and cleaning products exceeded theplan, while sales of bath additives, oral hygiene products, and insect repellents for clothes all fell
short of the plan. In the general environment & sanitation business, sales achieved the plan due toan increase in the number of annual contracts.
In the overseas business, which we are focusing on as a growth driver, while sales in China
stagnated due to repeated lockdowns and other factors, the expansion in Thailand, Vietnam, andother ASEAN countries performed better than planned, but overall group sales fell short of the plan.

B)

Cost of Sales/Gross Profit
In addition to a decline in the sales mix of insect care products, a major source of earnings, the costof sales ratio exceeded expectations due to soaring raw material and other prices triggered by risingresource and energy prices, as well as the impact of foreign exchange fluctuations. In addition tothese factors, the Company's gross profit is expected to fall short of its sales plan, despite cost
reductions achieved through changes in formulas and simplification of packaging.
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S.G. & A. Expenses
Cost control was implemented in accordance with the performance situation, and activity expenses
such as advertising, travel and transportation expenses were appropriately utilized within theplanned range, but this was not enough to cover the unachieved profit due to the effects of A) andB).
As a result, operating income is expected to fall short of the plan. Despite an unexpected foreignexchange gain, ordinary income and net income are also expected to fall short of the plan, as isoperating income.
As for dividends from surplus, the Company plans to pay a dividend of 118 yen per share aspreviously announced.

Note: The above forecast of financial results is based on certain information available to the Company atthe time of announcement, and actual operating results may differ from the forecast due to variousfactors.

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