Press Release

Notice Concerning Revisions to Full-Year Financial Results Forecasts
for the Fiscal Year Ending December 31, 2023 [JGAAP]
November ９, 2023
Listed exchanges: Prime Market

Listed company name: Earth Corporation

Code: 4985

URL

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

Representative Director: Katsunori Kawabata, Representative Director, President & CEO

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 recent performance trends, it hasrevised its full-year forecasts for the fiscal year ending December 31, 2023 (January 1, 2023 to December31, 2023), which were announced on February 13, 2023, as follows.
Revision of Full-Year Earnings Forecasts(1) Revisions to consolidated financial results forecasts for the current fiscal year (January 1, 2023 throughDecember 31, 2023)(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)160,0008,000

8,300

5,400

244.75135.73

157,500

5,000

5,500

3,000

Change (B-A)-2,500-3,000-2,800-2,400Rate of change (%)-1.5%-37.5%-33.7%-44.4%

152,339

7,434

8,133

5,303

(Ref.) Actual consolidated
results for the previous
fiscal year
(Fiscal year ended Dec
31, 2022)-1-

240.47

(2) Revisions to non-consolidated financial results forecasts for the current fiscal year (January 1, 2023
through December 31, 2023)(millions of yen)
Net sales
Forecast previously
announced (A)Revised forecast (B)OperatingprofitOrdinary profit

ProfitEarnings pershare (yen)

―

―

―

―

―
76.91

80,000

2,600

3,300

1,700

Change (B-A)

―

―

―

―

Rate of change (%)

―

―

―

―

76,594

3,840

4,576

3,168

(Ref.) Actual consolidated
results for the previous
fiscal year
(Fiscal year ended Dec
31, 2022)

143.67(3) Reasons for Revision
Net sales are expected to fall short of the initial plan mainly due to lower-than-expected sales inhousehold products division, such as bath salts and oral hygiene products, as a result of changes in themarket environment, in addition to weak sales in the Chinese market.
In terms of profit, gross profit is expected to fall short of the initial plan due to the above-mentioned sales
shortfall, the higher-than-expected impact of soaring raw material prices, an increase in the cost of sales
ratio due to a change in the sales mix, and expenses associated with the promotion of inventory
reduction measures. Although SG&A expenses, including those strategically invested, have been
properly managed within the initial plan, gross profit is expected to fall short of the initial plan in all profitcategories, including operating income, due to the impact of the failure to achieve the gross sales target.
The Company plans to pay a dividend of 118 yen per share from retained earnings, as previouslyannounced.
Note: The above forecast of financial results is based on certain information available to the Company at thetime of announcement, and actual operating results may differ from the forecast due to various factors.
- END --2-