Earnings briefing materials for 1Q of
the fiscal year ending December 2024
05/10/2024

Executive Summary
Sales：42.04 billion yen（VS Forecast +0.1% ＋0.04 billion yen）

Operating Income: 4.97 billion yen（ VS Forecast +77.8%＋2.17 billion yen）

24.1Q
RealizedTransformtheearningsstructure•

Insecticides & repellents performed as expected. Strong performance of General Environment andSanitation Business and Over seas.

•In daily necessities, mainstay bath salts and oral hygiene products fell short of plan.

•Impact of raw material price hikes was absorbed by the effects of price revision measures in 1Q•

Significant profit growth in 1Q due to conservative estimation of COGs at the planning stage and ashort from the cost budget.

•Continue to monitor business progress of each portfolio and expense usage from 2Q onward.

•SKU reduction：
Selecting the number of SKUs to be reduced, and a list is being prepared to achieve the 30%
reduction target.

•Inventory reduction：
Reduction of 5.0 billion yen from the same period of the previous year. Debt burden reduced.
Secured Debt capacity for growth investment.

•Hedge against foreign exchange risk：
Forward exchange contracts were executed in response to the rapid depreciation of the yen.

Revision ofDividend
Forecast•

Increased dividend by 2 yen to commemorate the 100th anniversary of thecompany's establishment, resulting in a dividend of 120 yen per share.

© Earth Corporation All Rights Reserved.

1

Financial Result Highlights of FY 12/2024.1Q

Financial Result Highlights(Unit: 0.1 billion JPY)

 Sales increased by 1.23 billion yen and Operating Income decreased by 0.55 billion yen from the PY.
 Overall sales were almost in line with the Forecast, although there were some fluctuations in sales bycategory. Operating Income was significantly higher in 1Q due to lower COGS and SG&A expenses.

23.1Q Realized
AmountComposition
ratio

24.1Q Forecast
AmountComposition
ratio

24.1Q Realized
AmountComparison

Composition

Diff

ratio

VS PY

YoY

Diff

VSVS Forecast

Forecast

Sales

408.1

100.0%

420.0

100.0%

420.4

100.0%

12.3

103.0%

0.4

100.1%

COGs

230.6

56.5%

247.4

58.9%

238.5

56.7%

7.8

103.4%▲ 8.896.4%

Gross Profit

177.5

43.5%

172.5

41.1%

181.9

43.3%

4.4102.5%

9.3

105.4%

SG&A Expenses

122.2

29.9%

144.5

34.4%

132.1

31.4%

9.9

108.1%▲ 12.4

91.4%

55.3

13.6%

28.0

6.7%

49.7

11.8%

▲ 5.5

90.0%

21.7

177.8%

Ordinary profit

56.4

13.8%

29.0

6.9%

51.4

12.2%

▲ 4.9

91.2%

22.4

177.5%Net Income attributable to

38.8

9.5%

21.0

5.0%

35.3

8.4%

▲ 3.5

90.8%

14.3

168.1%

Operating
Incomeowners of parent© Earth Corporation All Rights Reserved.

3

Management Accounting Basis: Sales /GPM (23vs24)：Flat YoY, in line with Forecast.

 Domestic Insecticides & repellents(Unit: 0.1 billion JPY)

 Domestic Household products：Bath Salts and Oral Care fell short of the PY and Forecast.

 Overseas： Both ASEAN and China performed strongly in 1Q.

 General Environment and Sanitation Business：Continued stable growth.

Sales / GPM by Portfolio
70%15060%
155
53.5%

151
50.9%

154
53.4%

133

133

50%
124

100

40.7%

36.0%

40.7%

40.1%

36.3%

35.1%

40%
30%

31.3%

29.6%

31.0%

50
48

59

55

66

66

71

31.2%

30.6%
20%

22.6%
31

33

35

010%

0%
23.1Q
24.1Q24.1Q
23.1Q
24.1Q
24.1Q
23.1Q
24.1Q
24.1Q
23.1Q
24.1Q
24.1Q
23.1Q
24.1Q
24.1Q
Realized Forecast Realized Realized Forecast Realized Realized Forecast Realized Realized Forecast Realized Realized Forecast Realized

Domestic:
Insecticides & Repellents

Domestic:
Household products© Earth Corporation All Rights Reserved.

Overseas

General Environment
Othersand Sanitation Business*On a management accounting basis.

Consolidated adjustments, e.g., internal eliminations not included.

4

Domestic: Insecticides & Repellents
Business Status
 Market: Although the market started weakly at 89.6% YoY at the end of March, the market size at
the end of March accounted for about 5% of the total market for the full year, and we will closely
monitor the situation from April onward.
 Shipments: Strong sales of products for cockroaches and other nuisance pests, partly due to thecontribution of new products; Price Revisions Products were largely in line with expectations.
Market situation at the end of Mar, our Market share【Market size (YoY)】

89.6%

Focused New Products Trends【Earth Corp.】

59.2%

Gokishu！

(0.1 billion JPY)

【VS Forecast】

300142%250
FY2023
FY2024200

Price Revisions Products（Total 59SKU）Trends

150100【YoY】【VS Forecast】＋0.32 billion Yen ＋0.07billion yen

50
01-4w

5-8w

9-12w 13-16w 17-20w 21-24w 25-28w 29-32w 33-36w 37-40w 41-44w 45-48w 49-52w© Earth Corporation All Rights Reserved.

5Domestic: The Household Products
Business Status
 Intensifying competition in Bath Salts and Oral Care, resulting in a decline in market
share.
 Considering renewal of category strategies and reallocation of marketing investments tostrengthen brand power as stated in the Mid-term Business Plan.
Bath Salts【Market size (YoY)】【Earth Corp.】

102.6%

44.8%

Oral Care【Market size (YoY)】

102.0%【Earth Corp.(Mouthwash)】

18.0%

Trends in Core ProductsTrends in Core Products• ONPO• MONDAHMIN（regular）
Vs. forecast

93%• KIKIYU

93%

Vs. forecast• PREMIUM CARE
Vs. forecast

75%© Earth Corporation All Rights Reserved.

Vs. forecast

75%
6Overseas: Business Status (ASEAN)(Unit: 0.1 billion JPY)

VietnamSales expansion in each domestic channel
Depot expansion to cultivate the OP-T market,
contributing to an increase in market share andnumber of deliveries.
”ARS Mos shooter” Preparing for launch at the endof July.
Achieved sales growth of GT +10%, MT +33%, contributed
to growth of household detergents and Insecticides &Repellents , as well as the launch of a new clothing
detergent product.
Stabilize product selling prices and improve sales
promotion efficiency by reviewing in-store sales promotion
measures.

Malaysia



ASEAN Expansion Area (Malaysia & The Philippines)

Philippines

Thailand

ASEAN Core Area (Thailand & Vietnam)

501040830

620

29.8

38.1

37.710Successful implementation of sales promotion
measures led to substantial achievement of 1Q sales
plan and narrowing of deficit.
Further sales expansion through the introduction ofnew products as needed from 2Q onward.
Profitability improves as sales increase due to launchof highly profitable new products.
Expanding distributor network and developing local B
to B channels to build sales channels.

420



2.8

2.9

3.6

23.1Q Realized

24.1QForecast

24.1QRealized

023.1Q Realized

24.1QForecast© Earth Corporation All Rights Reserved.

24.1QRealized

7Overseas: Business Status(China & Cross- border)(Unit: 0.1 billion JPY)

Crossborder

Sales declined in reaction to the special demand in
1Q of the PY.
Expansion of daily necessities such as Insect
repellents for clothes and air fresheners.

20ME

Shift in strategy to expand sales in real stores.
Achieved +30% sales growth in 1Q.
Established priority items in Insecticides & Repellents
products to promote distribution to the real market.

Hong Kong

Cross border businessTaiwanLocallyChina

Expanding Insecticides & Repellents.
Continued strong performance from the PY, withcontributions from the introduction of new products inaddition to the prior introduction of core products.



Mainly Insecticides & Repellents , Insect repellents
and dehumidifiers.
Revenues recovered from the PY's decline andachieved a significant increase in 1Q.



Mainly developing Insecticides & Repellents.
Stable sales growth with products that have gainedbrand recognition, such as fly and cockroach poison
bait.

1515
1010
553.7

4.0

5.4

23.1Q Realized

24.1Q Forecast

24.1QRalized

09.2

10.023.1Q realized

24.1Q Forecast

12.20© Earth Corporation All Rights Reserved.

24.1Q Realized

8General Environment and Sanitation
Business : Business Status
 Steady growth in the number of contracts with increasing demand for high-quality
hygiene management services, especially in food-related and pharmaceutical-relatedindustries (+501 contracts YoY).
General Environment and Sanitation Business –Trend in Annual Contract Numbers
THCPC

BM

15,31515,00010,00013,952

14,147

14,555

14,814

1,498

1,448

1,491

1,456

5,544

5,563

5,958

6,206

General Environment and Sanitation BusinessMain Initiatives

 Initiatives for expansion into theregenerative medicine industry.

1,446

6,612

 Strengthen auditing and consulting
services related to food safetymanagement.

 Promotion of DX
5,000

6,917

7,086

7,141

7,160

7,257

20.1Q

21.1Q

22.1Q

23.1Q

24.1Q

0

© Earth Corporation All Rights Reserved.

Promote development of software that will
help solve labor shortages andapplications that can provide value tocustomers at the systems subsidiary.
9Operating Income Change Factors(vs. Forecast) Raw material price hikes remained within the scope of the initial forecast.

(Unit: 0.1 billion JPY)

 Operating Income was significantly higher due to conservative estimation of COGS impact andunrealized expense budget as of 1Q.
 Expenses are expected to be fully offset from 2Q onward.
OI Decrease Factors (▲0.9)
Soaring raw materils prices

▲ 0.8

0.7

Cost pass-throughs
Sales Δ vs. forecast (Excluding price revisions)OI Increase Factors (+22.7)

▲ 0.1
1.9

Not yet used disposal expenses

7.6

Model Mix & othres

1.5
1.9

Personnel expenses
Distribution expenses

2.9
2.4
1.8Sales promotion expenses
Advertising expenses
R&D expenses

0.2Depreciation
Expenses from sales activities
Other expenses© Earth Corporation All Rights Reserved.

▲ 0.01.910

Progress Toward The Operating Income Target(Quarterly / Cumulative)(Unit: 0.1 billion JPY) The upward revision of the 1Q profit target was due to a conservative COGS estimation and an expense budget
bias toward the first half of the fiscal year.
 Weather risk in Insecticides & Repellents , severe business environment in Household Products, and otherfactors will continue to be monitored closely in 2Q and beyond.
Q1

Q2

Q3

Q4

Quarterly
51.0

49.8
28.0
55.3

43.9
▲ 7.0 ▲ 4.5▲ 28.5▲ 44.5

Quarterly
79.0

Cumulative

74.5

49.8
28.0

99.2

92.2
63.7

55.3
2023
2024
2024
(Realized) (Forecast) (Realized)© Earth Corporation All Rights Reserved.

2023
2024
2024
(Realized) (Forecast) (Realized)

2023
2024
2024
(Realized) (Forecast) (Realized)

30.0

2023
2024
2024
(Realized) (Forecast) (Realized)

11

Earth Group’s
Medium-to-long-term
Concept

Our Group Working Together
Toward a Bright Tomorrow for EARTH

Next MTBPTransform the earnings structure & build a framework

Expand Profit
Foundation inAsia

Generate CostSynergies

ESG / Open
Innovation

ReformCorporate
Compass &InfrastructureGrowmarketshare

Cultivatemarkets

Reviewbusinesses

Drive revenue: Domestic
Shift thebusinessportfolio

Optimizereleaseallocation

Enhance global expansion

Nurture a second revenue
pillar after Insecticides &Repellents

Build a foundation: Group

Build afoundation fordiverse businessdevelopment

Enhance oversight ofOverseas/Group companies

Enhance M&A capabilities

Group
restructuring &enhanced profit
structure

Enhance investmentprofitability

Maximize Groupsales & profits

Operating Income
MarginDrive sales: Overseas

Progress Toward The Profitability StructuralTransformation• SKU reduction：‣ As part of the category strategy renewal,
selecting the number of SKUs to be reduced.
‣ List is being prepared to achieve the 30% reduction target.

• Cash efficiency improvement due to inventory reduction‣ Inventory reduction from the second half of the previous year and renewal ofthe core system resulted in a significant inventory reduction of 5.0 billion yen
YoY as of 1Q.
‣ Debt burden was reduced by 4.0 billion yen, securing debt capacity forinvestment in growth.

• Hedge against foreign exchange risk
‣ Hedged against downside risk of profit by using foreign exchange forward
contracts in response to the rapid depreciation of the yen.
© Earth Corporation All Rights Reserved.

13

2024: Plan Highlights
 No change from the figures announced on February 13, 2024.
 One-time expenses incurred in promoting structural reforms, aggressive investment in humanresources, and aggressive investment in focused categories. (Bath Salts and Oral Care, which willbe the next revenue sources)(Unit: 0.1 billion JPY)

2024 PlanHighlights•SalesGross Profit
SG&AExpenses

We forecast sales growth in all 5 classifications within management
accounting.
Plans to execute price revisions in Insecticides & Repellents in Japan
this fiscal year, as well.

1,583

•
•

Expected COGS impact from soaring raw material prices of 1.1 B yen.
Profitability impact for Domestic Insecticides & Repellents and Householdproducts.

636.2

••

This FY we expect 1.5 B yen in expenses related to structural transformation.
We expect +1.6 B yen in human resources investment and +1.1 B yen
in investment in nurturing our brand.

572.5

1,650 •
658.3
628.3

2023 Realized

Operating
Income30.0 •Temporary profit decrease due to structural transformation.

63.7

Net Income
attributable toowners ofparent

17.9 ••We expect non-operating income and expenses in line with last year.
We don’t expect large extraordinary income and loss items.

41.0

ROE

2.7% •

Due to a temporary decrease in profitability.

6.3%© Earth Corporation All Rights Reserved.

14

This presentation contains forward-looking statements and financial results forecasts. These forward-looking statements
and financial results forecasts were formulated on the basis of company assumptions based on the information available.
These statements and forecasts are subject to risks and uncertainties that could cause actual results to differ materiallyfrom those described.