Press Release

Notice of Revision of Financial Results and Dividend Forecast
for the Full Year for the year ended December 31, 2021 [JGAAP]
January 31, 2022
Listed exchanges: Tokyo

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”) has revised its full-year earnings and dividend forecasts for the fiscal yearending December 31, 2021 (January 1, 2021 through December 31, 2021), as follows.

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1. Revision of Full-year Financial Results Forecast
Revision of forecast of the consolidated financial results for the year ended December 31, 2021
(millions of yen)
Net Sales

Operating

Net Income

Income(Ref.) Fiscal year ending initial plan for

Net Income perShare(yen)200,000

11,0007,000

317.43

201,500

12,0007,700

348.97

203,700

10,6007,100

321.81

Change (B-A)

2,200-1,400-600-Rate of change (%)+1.0%-11.6%-7.7%-

196,045

11,416

3,547

170.65the year ended December 31,2021
Forecast previously announced (A)(July 28, 2021)
Revised forecast (B)(Ref.) Results for the year ended
December 31,2020

Revision of forecast of the Non-consolidated financial results for the year ended December 31, 2021
(millions of yen)
Net Sales

OperatingNet Income

IncomeForecast previously announced (A)Net Income perShare(yen)126,900

9,200

6,850

310.45

128,200

8,300

6,300

285.55

Change (B-A)

1,300-900-550-Rate of change (%)

1.0%

-9.7%

-8.0%

-

124,249

9,681

345

16.60

(July 28, 2021)
Revised forecast (B)(Ref.) Results for the year ended
December 31,2020

Reasons for Revision
Sales of insecticides and repellents, which are the core of the Group's earnings, as well as oral careproducts and bath products, increased due to changes in lifestyles resulting from the impact of COVID-19.
However, due to the impact of COVID-19, earnings from overseas business in the ASEAN region werelower than expected, returns of insecticides and repellents were much higher than expected due to thesharp drop in temperature last summer, and the Company increased expenses based on the concept ofinvestment for medium- to long-term growth. As a result, operating income and net income attributable toshareholders of the parent company are expected to be lower than the previous forecasts, and we haverevised our forecasts as above.

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2. Revision of Dividends Forecast
Interim dividend per

Year-end dividend per

Annual per-share

shareshare

dividends

Forecast previously announced

115.00 yen

115.00 yen

Revised forecast

118.00 yen

118.00 yen

115.00 yen

115.00 yen

Dividends paid in FY2021

0.00 yen(Ref.) Dividends paid in FY2021

0.00 yen

Reasons for Revision
The Company positions the return of profits to shareholders as an important management issue, andstrives to maintain stable dividends while securing internal reserves for sustainable growth and themaintenance of a sound management structure.
Internal reserves will be used for investments in R&D and production facilities, as well as for strategic
investments in overseas growth drivers and acquisition of external resources through M&A and otheractivities.
With regard to dividends from retained earnings, we use the dividend on equity ratio (DOE) as one of theguidelines for returning profits to shareholders and set the level at 4-5%, with the aim of providing stable
and continuous dividends.
In addition, in line with the medium-term management plan "Act For SMILE -COMPASS 2023-", we are
currently working to improve our profit structure, aiming for sustainable growth and enhancement ofcorporate value. As a result, we have strengthened our financial base, and in response to the support ofour shareholders to date, we have decided to increase the annual dividend for the fiscal year ending
December 31, 2021 from the most recent forecast of 115 yen per share to 118 yen per share.
The Company's Articles of Incorporation stipulate that the Company may make the matters listed in each
item of Article 459, Paragraph 1 of the Companies Act by resolution of the Board of Directors. The yearend dividend will be formally determined and implemented by a resolution of the Board of Directors to beheld in February 2022.
Note: The above forecast of financial results and dividends are based on certain information available tothe Company at the time of announcement, and actual operating results may differ from the forecast
due to various factors.

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