Before I explain our business performance, I would like to disclose three items
today: 1Q financial results, 1Q earnings presentation materials, and dividend
forecast revision.
In 2025, we will celebrate the 100th anniversary of our establishment. We
would like to take this opportunity to express our deepest gratitude to everyone
involved in the capital market who is here today, as well as to the many others
who have contributed to this milestone year, which also marks the 20th year
since our listing.
As an expression of our gratitude, we have decided to pay a commemorative
dividend of 2 yen per share for the year-end dividend, and as a result, wewould like to reiterate that we will pay a year-end dividend of 120 yen per
share for the current fiscal year.
I will now explain our business performance for the first quarter of 2024.

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Here are the 1Q performance highlights.
Net sales totaled 42.04 billion yen and operating income was 4.97 billion yen.
Compared to the previous quarter, net sales were up 1.23 billion yen andoperating income was down 550 million yen, resulting in higher sales and lowerincome.
On the other hand, compared to the budget, overall net sales were almost inline with the plan, although there were some category differences.
In addition, operating income was significantly higher as of 1Q due to lowerthan-planned cost of sales and SG&A expenses.

2These are sales and gross profit margins on a managerial accounting basis.
Since the last financial results briefing for FY2023, explanations have been
provided in five segments: Domestic Insecticides & Repellents, Domestic
Household Products, Overseas, General Environment and Sanitation Business ,and Others.
Domestic Insecticides & Repellents (pink bar graph on the left) have remained
flat year on year and are progressing as planned.
Domestic Household Products (second from left, light blue bar graph) continue
to face a difficult situation. Sales of bath salts and mouthwashes that is core
part of Household Products fell short of both the previous year and the plan.
On the other hand, Overseas (middle, yellow bar graph), both ASEAN andChina are performing very well as of 1Q.
Also, General Environment and Sanitation Business (second from the right,green bar graph) continues to show stable growth.

3This section discusses domestic insecticides.
As of the end of March, the market got off to a sluggish start, at 89.6% of theprevious year's level. Although this figure alone may seem like a weak start, it
is not a cause for pessimism, as the progress rate is only about 5%. In
addition, favorable weather and other factors have actually contributed sinceApril, and the market is currently significantly higher than in the previous fiscalyear.
Under these circumstances, shipments of the new product “Gokishu!,” launchedthis fiscal year, have been strong, at 142% of the plan.
In addition, price revisions for 59 SKUs of insect care products wereimplemented this fiscal year, and these products are also off to a good start.

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On the other hand, conditions for daily necessities have remained difficult sincelast year.
As stated in the medium-term business plan, I recently explained, we arecurrently considering revamping our category strategy and reviewing theallocation of marketing investments in order to strengthen our brand power
going forward. I hope to be able to explain in more detail when we announce
our financial results for the second or third quarter.

5This section discusses the overseas situation.
Overseas, including the next page, will be divided into four categories: ASEAN
Core Area, ASEAN Development and Expansion Area, China, and Export
Business.
First, let me explain the situation in the ASEAN Core Area. This area includes
Thailand and Vietnam, both of which are growing steadily.
Especially in Thailand, sales are expanding in each domestic channel. We are
currently expanding the number of depots in order to develop open trade (OPT). These are contributing to an increase in market share and the number ofdeliveries. In addition, we are planning to launch “ARS Mos shooter” at the endof July in collaboration with Kao Corporation, which was recently announced.
We are in the process of working hard toward the launch of the product.
In Vietnam, we are also doing very well, with a significant increase in sales ofGT (+10%) and MT (+33%). In addition to growth in our household detergentsand insecticides that is a core products, new products clothing detergents also
contributed to sales.
Next, I would like to look at the situation in the ASEAN expansion area. This
area includes Malaysia and the Philippines. Both local subsidiaries are
performing well, exceeding the plan as of 1Q.

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Next is the situation in China. (Left side)I think I mentioned at the last financial
results briefing that the business environment in China was difficult. In
response, we have been taking measures such as a shift in strategy to expand
sales at real stores. Thanks to these efforts, we have achieved a 30% increasein sales over the previous year as of 1Q. Although we are not yet in a position
to let our guard down in order to achieve our full-year plan, we will strive toexpand sales by promoting the distribution of the priority items that we haveset.
With regard to the export business, our expansion in the Middle East and Hong
Kong has been very strong. (Right side)Especially as of 1Q, the Middle East,
Hong Kong, and Saudi Arabia have been improving very much.

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This section discusses the General Environment and Sanitation Business.
The number of contracts continues to grow steadily. This is due to the verystrong demand for high quality sanitation services, which has led to stable
growth.

8I would like to explain the factors behind the fluctuation of operating income
against the plan.
This fiscal year, too, we expect to be affected by raw material prices hikes,
although not to the same extent as in the past two years. Currently, there is anegative impact of about 0.08 billion yen on operating income, but this ismostly covered by the increase of 0.07 billion yen due to the effects of pricerevision measures.
In addition, the cost of sales was slightly conservatively estimated in the 1Q
due to unaccounted-for disposal costs, and expenses such as sales promotion
expenses, advertising expenses, and R&D expenses were unaccounted-for
against the plan, resulting in a significant increase in profit.
However, we expect that expenses will be fully absorbed in the 2Q and beyond,so we believe that the actual increase in profit will be a little smaller thanactual.

9I would like to discuss the progress of operating income for the quarter.
At the 1Q stage, operating income was substantially higher than planned, but
as I explained earlier, the actual increase in profit will be a little smaller, and weare cautious at this time in light of the risks involved in the 2Q and beyond.

10I would like to briefly touch on the progress of the medium-term business planthat I explained the other day.
The three pillars of the medium-term business plan are Expand sales overseas,
Transform the earnings structure, and Group restructuring .The Expand sales
overseas, is as I explained earlier.
I will explain the Group restructuring in the 2Q and beyond.
Therefore, I will explain the Transform the earnings structure on the next page.

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First, with respect to SKU reduction, as part of the category strategy renewal,
we are in the process of narrowing down the candidates for SKU reduction, andare in the process of compiling a list for the 30% SKU reduction target.
Next is the improvement of cash efficiency through inventory reduction.
Inventory reduction from the second half of the previous year and the coresystem, which was revamped and has been in operation since January 2024,resulted in inventory reduction of 5.0 billion yen compared to the first quarter.
This has also reduced the debt burden by 4.0 billion yen, contributing tosecuring debt capacity for future growth.
In addition, we will also use foreign exchange forward contracts as a risk hedge
in response to the recent rapid depreciation of the yen.

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Finally, I would like to discuss our plan for the current fiscal year.
At this point, there is no change from the plan announced on February 13.As of1Q, operating income was significantly above the plan. However, while we
expect that the business will continue to do well in the 2Q and beyond, there
are weather risks for insecticides, a difficult business environment for daily
necessities, and the use of unused expenses, so we remain cautious at thispoint and will focus on achieving the profit target of 3 billion yen.

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This concludes the explanation of first quarter results. Thank you.

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