Press Release

Notice Concerning Revisions to Full-Year Financial Results Forecasts
for the Fiscal Year Ending December 31, 2023 andthe Recording of an Extraordinary Loss [JGAAP]
January 29, 2024
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 OfficerDirector 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 December
31, 2023), which were announced on November 9, 2023, as follows.

-1-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)
Consolidated
net sales

Consolidated
operating profit

Consolidated
ordinary profit

Profitattributable toowners ofparent

Consolidated
earnings pershare (yen)157,500

5,0005,500

3,000

135.73

158,300

6,370

6,790

4,100

185.45

Forecast previously
announced (A)(Released on 9 Nov 2023)
Revised forecast (B)Change (B-A)

800

1,370

1,290

1,100

Rate of change (%)＋0.5%＋27.4%＋23.5%＋36.7%(Ref.) Actual consolidated
results for the previous
fiscal year
(Fiscal year ended Dec31, 2022)

152,339

7,434

8,133

5,303

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)(Released on 9 Nov 2023)
Revised forecast (B)Change (B-A)

Operatingprofit

Ordinary profit

ProfitEarnings pershare (yen)80,000

2,600

3,300

1,700

76.91

80,600

3,420

4,220

▲ 8,260▲ 373.62

600

820920▲ 9,960

Rate of change (%)＋0.8%＋31.5%＋27.9%―(Ref.) Actual consolidated
results for the previous
fiscal year
(Fiscal year ended Dec
31, 2022)

76,594

3,840

4,576

3,168

143.67(3) Reasons for Revision[Consolidated results]
Compared to the assumptions made at the time of the forecast announced on 9 November 2023, bothsales and the profits at each stage are expected to exceed the previously announced forecasts, mainly
due to higher sales in the non-consolidated results and lower sales promotion costs and expenses.
[Non-consolidated results]
Compared to the assumptions made at the time of the forecast announced on 9 November 2023, sales,
operating profit and recurring profit are all expected to exceed the previously announced forecasts,
mainly due to an upward swing in shipments of Insecticides & repellents and progress in curbing returns,-2-as well as progress in curbing sales promotion costs and expenses. On the other hand, non-consolidated
net income is expected to fall short of the previously announced forecast due to the recording of avaluation loss on shares in affiliated companies related to BATHCLIN Corporation Inc. as described in(4).
(4) Losses on valuation of shares in subsidiaries and affiliates (non-consolidated accounts)
The business environment for consolidated subsidiary BATHCLIN Corporation Inc. has changed
significantly from the assumptions made when the shares were acquired in 2012, including the impact of
the recent sharp rise in raw material prices, and as a result of a valuation in accordance with theAccounting Standard for Financial Instruments, a loss of JPY 10,965 million was recorded in the year
under review as a valuation loss on shares in affiliates.
This valuation loss is only recorded in the company's non-consolidated financial statements and has noimpact on consolidated results.
(5) Dividend forecast for the year ending 31 December 2023
The Company regards the return of profits to shareholders as an important management issue and has
not changed its dividend forecast for the year ending 31 December 2023 to 118 yen per share, aspreviously announced.

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 --3-