At 15:00 on 9 November, a revised forecast disclosure was made in
conjunction with the 3Q results announcement.
At the MTG on 9 November, the 3Q results will be explained, followed by anexplanation of the revised full-year forecasts.

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In the 3Q FY2023, sales and profits increased and decreased, with both sales
and profits falling short of the plan.
Particularly impacting on the plan was the underachievement of gross profit.
The gross profit margin fell 1.4 pt below the plan due to a higher-thanexpected impact on the cost of sales caused by rising prices of raw materials
and other products, as well as an increase in the sales mix of products withrelatively low profitability.
On the other hand, SG&A expenses were lower than planned, although some ofthem have been postponed to Q4.

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This page shows operating profit progress for the quarter.Q1 started better
than both the plan and the previous year, but Q2 and Q3 were both below theplan and the previous year.
The Q4 estimates shown here reflect the revised forecasts disclosed on 9November.

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The factors contributing to the change in operating profit are explained firstfrom the previous year.
One factor in the increase in profit is the effect of price revision measures. Unit
price increases, mainly in Insecticides & Repellents Products, have been
increasing, and have been a factor in the increase of profit by more than JPY
3.3 billion in the 3Q cumulative period, overcoming the impact of volumedeclines.
Raw material price hikes had an impact of JPY 2.75 billion in the 3Q cumulative
total. In other words, it can be said that the raw material impact has been
covered by price revisions, but other factors, specifically the decline in sales ofitems excluding the price revisions and the sales mix I mentioned earlier, havepushed profits down.
In terms of SG&A expenses, compared to the previous year, personnel
expenses, distribution expenses and R&D expenses have increased. As forother expenses, they are an accumulation of smaller items, but the main ones
are depreciation, commissions payable and repair costs.

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The same analysis is based on the planned ratio.
The impact of price increases for raw materials and other items has exceeded
the initial assumption by JPY 0.5 billion.
Although the cost revisions have been successful, as shown in the previous
year's comparison, the impact of the volume decline has been slightly larger
than expected, and is a factor in the underachievement of JPY 230 million.
However, the major impact is still the failure to achieve the sales plan,
excluding price revisions, and the decline in profit margins due to an increase in
the sales mix of low-profitability products. The household products division,
including bath salts and oral hygiene, was particularly affected.

As explained earlier, SG&A expenses are progressing within the planned range.

5Sales by sector.
Insecticides & Repellents products have narrowed the margin ofunderachievement due to the upward revision of the plan in Q3. Shipments arecontinuing even in the off-season, and returns are expected to decrease, so we
expect the final figures to be in line with the plan.
In household products, sales of oral hygiene products, bath salts and otherhousehold products have all fallen short of the plan. The biggest deviations
from the plan are in bath salts and masks.
The general environment and sanitation business has made good progress interms of contract wins, etc., and has exceeded both the previous year's figures
and the plan.

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For Insecticides & Repellents products, the market increased by 105.6%
compared to the previous year and our market share increased by 0.7 pt to56.8%.
The bar chart on the left shows a comparison between the previous year andthe current year in terms of market sales every four weeks. You can read April
and May from left to right with little difficulty in understanding.
As shown, the market was below the previous year's level at the beginning ofthe season, but from June it started to increase, and from July onwards it
exceeded the previous year's level every week, which is a good market
environment for the season as a whole. We see the market also accepting theprice revisions in terms of higher unit sales prices.
Below right, we present an analysis of the factors behind the increase anddecrease in sales. Expectations for new products were high this year, but things
did not go as expected here. However, if you look at the total, we are doing
well, as we expect to be almost in line with the plan for the full year.

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Bath salts, on the other hand, have fallen below expectations, with the market
down 5% on the previous quarter and market share also down. In terms ofmarket trends, the environment has recovered somewhat from the point of
explanation in 2Q, but the main formulations are still below the previous year'slevel, with only products for children showing growth. However, the market size
is still above that before Corona and in 2019.
The core products of the Company's bath salts are also below the plan acrossthe board. For “Kikiyu”, the company carried out a major renewal this autumn
and expected growth in the second half of the year, but the situation has fallen
short of expectations.

8This is the cost of sales situation.
The impact on the cost of sales due to price hikes in raw materials and otheritems, higher energy costs and higher purchase prices for semi-finishedproducts has exceeded expectations.
The annual impact has already exceeded the expected annual impact of JPY 2.5billion, and as of 3Q the impact was JPY 2.75 billion.

9This is the status of SG&A expenses.
Overall, expenses are within the planned range, although there is some in andout of accounts.
We hope to have this one in hand later on.

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This is the status of overseas results.
Overall overseas sales were ¥ 13.1 billion, or 109% of the previous year's level.
Looking at individual countries, Thailand grew by 5% in local currency terms
and Vietnam by 12%, also in local currency terms, driving growth in overseas
sales. Export business from Japan has also been strong.
In China, on the other hand, sales to the e-commerce channel continue to belower than both the previous year and the plan.
Total overseas operating profit, which is a simple aggregate, fell byapproximately JPY 160 million, and the profit margin also declined slightly. Thisis largely due to poor sales in China.

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Having explained the 3Q FY2023 results, the next section will now discuss therevisions to the full-year forecasts disclosed on 9 November.

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In view of the current situation, the company revised its full-year forecasts on
9 November.
The revised forecast is for net sales of JPY 157.5 billion, a decrease of JPY 2.5
billion compared to the previous forecast.
Operating profit is expected to be JPY 5 billion, a decrease of JPY 3 billion
compared to the previous forecast, with a negative impact of JPY 4 billion fromgross profit and a positive impact of JPY 1 billion from selling, general andadministrative expenses.
The forecast for non-operating income and expenditure and extraordinary
income and expenditure is somewhat conservative.

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This is a summary of the factors behind the difference between the initial planand the current estimates.
As mentioned briefly in the explanation of 3Q results, the main factor is thathousehold products did not reach the plan.
To break it down a little further, the largest negative impact of 2 billion yen is
expected to come from the failure to achieve sales of bath salts and the cost
increase, followed by a negative impact of 0.5 billion yen in oral hygiene and0.7 billion yen in other household products.
The other negative impact of ¥0.5 billion is due to costs associated with thedisposal of excess inventory in order to reduce inventory levels, which havebeen increasing recently, and to improve asset efficiency.
For overseas, a negative impact of JPY 0.3 billion is expected due to poor sales
in China, mainly in the e-commerce channel, while ASEAN and export businessare generally doing well.
In terms of expenses, the consolidated total is expected to land 1 billion yen
less than planned.

14This chart shows the difference between the outlook at the time of the 2Q
results presentation and the current situation.
At the time of the explanation of the 2Q results, the company had a plan tomake up for the first-half operating profit shortfall of ¥880 million throughrecovery measures to be taken in the second half of the year.
Regarding the effects of these measures, (1) the second-half upturn in
Insecticides & Repellents products is expected to exceed the expected recovery
amount as a result of increased shipments and lower-than-expected returns,
partly due to the strong market in the second half of the year.
However, the contribution from (2) additional price revision measures and (3)unplanned new products and renewals will not be as expected, and both areexpected to remain insignificant.
(4) With regard to cost control on a non-consolidated basis, in addition to thepostponement of unspent costs in the first half of the year, strategic costs wereinvested in the second half of the year, which as a result did not lead to arecovery effect.
In addition to these factors, the significant downside impact of householdproducts, including the Group companies' failure to achieve the plan, and thecosts from the reduction of excess inventory as explained earlier, are expected
to result in an underachievement of JPY 3 billion.

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Finally, we would like to explain our measures for the future.
We recognise that, in addition to the fact that our business performance has
declined, there were also issues with the way we communicated with thecapital market. In the future, we will strive to disseminate information,
including on the risk side, so that everyone can make appropriate judgments
about the situation.
We hope to provide a detailed explanation of our business measures in our next
medium-term management plan, which is currently being formulated. This will
be presented in conjunction with the presentation of the full-year results inFebruary next year.

16This concludes the explanation.

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