Consolidated Financial Results
for the Three Months Ended March 31, 2024 (Japanese GAAP)May 10, 2024
Company name:
Stock code:

Earth Corporation
4985

Representative:

Katsunori Kawabata, President and Representative Director, Chairman of the Board of Directors ofeach group company
Isao Goji, Senior Executive Officer, Director General, Corporate Planning Headquarters+81-3-5207-7458

Contact:
Tel:

Listing Stock Exchange: Tokyo
URL: https://corp.earth.jp/en/index.html

Scheduled date for quarterly report submission:
Scheduled date for dividend payment:
Preparation of supplemental explanatory materials:
Results briefing to be held:1.

May 13, 2024—
Yes
Yes (For securities analysts and institutional investors)

Consolidated Financial Results for the Three Months Ended March 31, 2024
(January 1, 2024 to March 31, 2024)(1) Consolidated operating results
Sales(Percentages indicate YoY change)
Net income attributable
Ordinary income
to owners of parent

Operating income

Million yen%

Million yen%

Million yen%

Million yen%

Three months ended
42,0493.0
4,978(10.0)
5,148
(8.8)
3,530
(9.2)
March 31, 2024
Three months ended
40,819
5.7
5,532
3.9
5,645
(0.1)
3,889
3.3
March 31, 2023
Note: Comprehensive income for the three months ended March 31, 2024 was 4,396 million yen (3.6%), and comprehensive income forthe three months ended March 31, 2023 was 4,243 million yen (6.2%)
Net income per share
Three months ended
March 31, 2024
Three months ended
March 31, 2023

Diluted net income
per share

Yen

Yen

159.54－176.28－(2) Consolidated financial position
Total assets
Million yen

Net assets
Million yen

Equity ratio%

Three months ended
144,986
73,591
47.1
March 31, 2024
Fiscal year ended
132,407
72,00050.3
December 31, 2023
Reference: Equity capital amounted to 68,251 million yen as of March 31, 2024 and 66,546 million as of December 31, 2023.

2.

Dividends
Dividend per share
End of Q1

End of Q2

Yen

End of Q3

Yen

Year-end

Yen

Total
Yen

Yen

Fiscal year ended
0.00
118.00－－December 31, 2023
Fiscal year ending－
December 31, 2024
Fiscal year ending
December 31, 2024
0.00
118.00－(forecast)
Note: No revisions have been made to the Company’s most recently announced dividend forecast.

118.00118.00

Breakdown of year-end dividend for the fiscal year ending December 31, 2024: Ordinary dividend of 118.00 yen, commemorative
dividend of 2.00 yen.

3.

Consolidated Earnings Forecast for the Fiscal Year Ending December 31, 2024
(January 1, 2024 to December 31, 2024)

Sales(Percentage indicates YoY change for full-year and quarters)
Net income attributable
Net income
Ordinary income
to owners of parent
per share

Operating income

Million yen%

Million yen%

Million yen%

Million yen

%

Yen

1H

94,7004.8

7,900(20.4)

8,200(21.3)

5,450(22.6)

246.31

Full-year

165,000

4.2

3,000

(52.9)

3,560(47.6)

1,790(56.4)

80.90

Notes: No revisions have been made to the Company’s most recently announced consolidated earnings forecast.

*Notes(1) Changes in significant subsidiaries during the period under review:
None(Transfers of specified subsidiaries associated with changes in the Company’s scope of consolidation)
Newly subsidiaries added:
None
Subsidiaries excluded:
None(2) Distinctive accounting methods applied when preparing quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting estimates and retrospective restatements
1. Accounting policy changes due to accounting standard revisions, etc.:
None
2. Other accounting policy changes:
None
3. Changes in accounting estimates:
None
4. Retrospective restatements:
None(4) Number of shares outstanding (common stock)
1. Shares outstanding(including treasury stock)

As of March 31,
2024

22,141,100

As of December
31, 2023

22,141,100

2. Treasury shares outstanding

As of March 31,
2024

14,346

As of December
31, 2023

14,296

3. Cumulative average number ofsharesThree months
ended March 31,
2024

22,126,796

Three months
ended March 31,
2023

22,063,718*The financial information in this quarterly report is not subject to review by certified public accountants or auditing firms.
*Appropriate use of earnings forecast and other special notes
The earnings forecasts and other forward-looking statements contained in this document are based on information currently available
to the Company, and certain assumptions it considers reasonable, but are not intended to be a promise that the Company will achieve.
Actual results may vary materially from forecasts due to a variety of factors. For more information regarding assumptions made when
formulating earnings projections and matters to note when using these projections, please see “1. Qualitative Information on Quarterly
Financial Performance (3) Explanation of Consolidated Earnings Forecasts and Other Projections” on page four of the accompanying
materials.
(How to obtain supplementary materials on quarterly financial results)
The Company plans to hold a financial results briefing session for analysts and institutional investors on Friday, May 10, 2024.
Supplementary materials on financial results to be used at the briefing will be posted on the Company’s website on the day of thebriefing.

Accompanying Materials ― Contents

1. Qualitative Information on Quarterly Financial Performance ............................................................................................................ 2(1) Explanation of Operating Results..................................................................................................................................................... 2(2) Explanation of Financial Position .................................................................................................................................................... 4(3) Explanation of Consolidated Earnings Forecasts and Other Projections .......................................................................................... 4
2. Quarterly Consolidated Financial Statements and Primary Notes ..................................................................................................... 5(1) Consolidated Balance Sheet ............................................................................................................................................................. 5(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income........................................................... 7
Consolidated Statement of Income .................................................................................................................................................... 7
Consolidated Statement of Comprehensive Income........................................................................................................................... 8(3) Notes to Quarterly Financial Statements .......................................................................................................................................... 9(Notes to going concern assumptions) ............................................................................................................................................... 9(Notes in the event of significant changes in shareholders’ equity) ................................................................................................... 9―1―

1. Qualitative Information on Quarterly Financial Performance(1) Explanation of Operating Results
During the first quarter of the fiscal year ending December 31, 2024, the domestic and overseas economic outlooks remained
clouded by inflation and sharp currency fluctuations in Japan and the impact of global monetary policy tightening. We are operatingin line with our company motto, “Leveraging the Group’s strength for Earth’s future,” and our medium-term management plan
through the year ending December 31, 2026, Act for SMILE–COMPASS 2026–. The plan positions profit and cash flow generation(improving profitability) as our topmost priority, and we will work to restructure the domestic business and enhance the brandpower of our household products toward this end. We see development in Asian markets via local subsidiaries and exports to theMiddle East and other regions as growth drivers, and aim to expand overseas sales.
In the first quarter of the fiscal year, Group sales amounted to 42,049 million yen (up 3.0% year-on-year) on the back of strong
shipments of new household insecticides and repellents, aided by growth overseas and higher contract numbers and contract values
in the General Environment and Sanitation Business. Gross profit rose on higher sales, but increased personnel and advertisingexpenses crimped profit at other lines. Operating income came to 4,978 million yen (-10.0% year-on-year), ordinary income to5,148 million yen (-8.8% year-on-year), and net income attributable to owners of parent to 3,530 million yen (-9.2% year-on-year).
Results by segment are as follows.
[Household Products Business]
In the Household Products Business, we are taking a select and focus approach to brands and SKUs based on profitability andfuture prospects and are looking into measures to strengthen our brands and expand markets as part of our efforts to reform ourearnings structure, in line with our medium-term plan. Overseas, we are actively rolling out businesses in the ASEAN region and
China and expanding the export business.
In Q1, the segment reported sales of 38,807 million yen (+4.0% year-on-year) as the contribution from new household insecticides
and repellents and higher sales in Thailand, Vietnam, and China offset slumping sales of oral hygiene products and bath salts amid
a difficult competitive climate and changes in the external environment. On the profit front, segment income (operating income)was 4,778 million yen (-9.4% year-on-year) as the impact of higher raw material prices seen in the previous fiscal year continued
and advertising expenses increased.

―2―

(Household Products segment results)(Millions of yen)

Consolidated Q1 results
for the fiscal year ended
December 31, 203

Consolidated Q1 results
for the fiscal year ending
December 31, 2024

YoY change(amount)

Household insecticides and repellents

19,50320,509

1,005

5.2%

Household products

15,522

15,388(133)(0.9%)

Oral hygiene products

1,867

1,722

(144)

(7.8%)

Bath salts

6,174

5,772

(402)

(6.5%)

Other household products

7,480

7,893

413

5.5%

YoY change(percent)

Pet products and others

2,291

2,909

617

26.9%

Total sales

37,31838,807

1,489

4.0%

Segment income (operating income)
5,276
4,778
(497)
(9.4%)
Notes: Sales include internal sales and transfers made within and between segments, which amounted to 3,049 million yen during
Q1 of the fiscal year ended December 31, 2023 and 3,855 million yen during Q1 of the fiscal year ending December 31,
2024.
Results by product category are as follows.
Household insecticides and repellents
In Japan, the weather was favorable from the start of the year, driving solid shipments of products for insect pests. Sales of
products for cockroaches also increased due to strong shipments of items with a preventative angle such as MAMO ROOM for
Cockroaches (launched in the previous fall) and a new product, Gokishu!
Overseas, growth in the ASEAN region, primarily in Thailand and Vietnam, and expanding export business contributed toresults.
As a result, sales for this category were 20,509 million yen (+5.2% year-on-year).
Household products
In oral hygiene products, we actively promoted Jidode Detekuru Mondahmin, a mouthwash that comes with a dispenser toencourage customers to get in the habit of using it. However, sales of the Mondahmin range slumped in a competitive climatethat remained tough, for sales of 1,722 million yen (-7.8% year-on-year).
In bath salts, the market slump that had continued since the previous year levelled out as average prices climbed amid shifting
trends and changes in the lifestyle environment, and the overall market recovered to be in line with year-earlier levels. However,shipments of our Group’s products such as Kikiyu and Onpo were down year-on-year, and sales came to 5,772 million yen (6.5% year-on-year).
In the other household products category, shipments of insect repellents for clothing were down year-on-year, but sales ofwomen’s masks, coolants, and air-conditioner cleaning agents increased, for sales of 7,893 million yen (+5.5% year-on-year).
Sales in this category amounted to 15,388 million yen (-0.9% year-on-year).
Pet products and others
In the pet products category, spending per pet is in an upswing due to heightened awareness of their health among owners andimprovements in their living environments, sustaining a strong market for pet products. Sales of pet care products such as
premium food and cat litter increased in this environment, for category sales of 2,909 million yen (+26.9% year-on-year).
[General Environment and Sanitation Business]
The core customers of our General Environment and Sanitation Business (primarily companies involved in the food,
pharmaceutical, and packaging material industries) face stringent hygiene management requirements to prevent food poisoning andcontamination with foreign substances. They thus have growing needs for our Group’s high-quality hygiene management services―3―

that leverage our specialized knowledge, technologies, and expertise.
In these circumstances, we stepped up our investment in building an internal framework that can serve customer needs byinstalling and developing systems geared toward human resources development and business process streamlining. At the sametime, we worked to maintain and expand our contract numbers by providing hygiene management systems distinguished bystrengthened technological capabilities, including through collaborative industry, academia, and public-sector research. We targeted
the pharmaceutical and regenerative medicine industries in particular, and continued strengthening audit and consulting operations
related to food safety management.
Sales in the General Environment and Sanitation Business came to 7,125 million yen (+8.1% year-on-year) in Q1. Despite
increased costs in annual contracts, the main format for the Company, higher gross profit accompanying sales growth increased
segment income (operating income) to 290 million yen (+11.0% year-on-year).
(Millions of yen)

Consolidated Q1 results
for the fiscal year ended
December 31, 2023

Consolidated Q1 results
for the fiscal year ending
December 31, 2024

YoY change(amount)

YoY change(percent)

Sales

6,590

7,125

535

8.1%

Segment income (operating income)

262

290

28

11.0%

Notes: 1. Sales include internal sales and transfers made within and between segments, which amounted to 38 million yen in Q1of the fiscal year ended December 31, 2023 and 27 million yen in Q1 of the fiscal year ending December 31, 2024.

(2) Explanation of Financial Position(1) Assets, Liabilities and Net Assets
As of March 31, 2024, total assets amounted to 144,986 million yen, up 12,579 million yen from December 31, 2023. This wasprimarily due to declines in cash and deposits and other intangible assets, and increases in trade receivables, inventories, software,and investments and other assets. Note: Accompanying the start of operations of the overhauled core system, some software in
progress classified as other intangible assets was transferred to software, resulting in adjustments to the respective items.
Meanwhile, total liabilities as of March 31, 2024 came to 71,394 million yen, up 10,988 million yen from December 31, 2023.
This was mainly due to a decline in accounts payable–other and increases in trade payables, short-term borrowings, and provision
for bonuses.
Net assets amounted to 73,591 million yen as of March 31, 2024, rising 1,590 million yen compared to December 31, 2023. Thiswas mainly due to increases in the foreign currency translation adjustment and retained earnings due to the booking of net income
attributable to owners of parent.
The Company’s equity ratio was 47.1% as of March 31, 2024, down 3.2 points from December 31, 2023.
(2) Cash Flows
The Company has not prepared a statement of cash flows for the period ended March 31, 2024, so disclosure is omitted.

(3) Explanation of Consolidated Earnings Forecasts and Other Projections
The Company has made no changes to its full-year earnings forecast for the financial year ending December 31, 2024, which
was announced on February 13, 2024.
This forecast is based on information available to the Company at the time of its formulation. Actual results may differ substantiallyfrom the projections included within due to potential changes affecting a variety of factors.
In the fiscal year ending December 31, 2024, we plan to pay a commemorative dividend of 2.00 yen per share to mark the 100th
anniversary of our founding in 2025. As a result, we now expect to pay a year-end dividend per share of 120.00 for the fiscal year.
For details, please see the “Notice Concerning Revision of Consolidated Dividend Forecast for the FY2024.” dated May 10, 2024.

―4―

2. Quarterly Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheet
Fiscal year ended
December 31, 2023
(as of December 31, 2023)(Millions of yen)Three months ended
March 31, 2024
(as of March 31, 2024)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary
operatingMerchandise and finished goods
Work in process

claims-Raw materials and supplies
Other

17,50523,573

14,60432,628

2,066

2,242

21,313820

26,517
971

6,133
2,859

6,047
2,927

Allowance for doubtful accounts

(100)

(123)

Total current assets

74,17085,81632,977(17,484)

33,425(17,853)

15,492

15,572

Machinery, equipment and vehicles
Accumulated depreciation and impairment

18,798(13,617)

19,048(13,921)

Machinery, equipment and vehicles, net

5,181

5,127

7,838
379

7,842
435

Accumulated depreciation and impairment

(188)

(193)

Leased assets, net

191

241

Construction in progress
Other

926
10,025884
10,322

Accumulated depreciation and impairment(8,272)(8,436)

Other, net

1,753

1,886

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation and impairment
Buildings and structures, net

Land
Leased assets

31,38331,554

Intangible assets
Trademark right

Total property, plant and equipment

2,411

2,361

Software
Goodwill

1,399
1,261

3,285
1,232

Customer-related intangible assets
Other

1,523
2,178

1,543
314

Total intangible assets

8,774

8,738

Investments and other assets
Investment securities

5,162

5,652

Retirement benefit asset
Deferred tax assets

9,844
753

9,947
883

Other
Allowance for doubtful accounts

2,320
(1)

2,395
(1)

Total investments and other assets

18,07918,876

Total non-current assets
Total assets―5―58,237

59,170132,407

144,986

Fiscal year ended
December 31, 2023
(as of December 31, 2023)(Millions of yen)Three months ended
March 31, 2024
(as of March 31, 2024)

Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating

21,4848,520

25,761
11,938

Short-term borrowings
Accounts payable - other

10,000
6,608

14,000
4,812

Income taxes payable
Accrued consumption taxes

1,608
713

2,098
544

Provision for bonuses
Refund liabilities

283
1,226

1,563
896

Other

7,047

7,047

Total current liabilities

57,493

68,663

Non-current liabilities
Deferred tax liabilities

1,550

1,374

382
486

359
487

Retirement benefit liability
Asset retirement obligations
Other

494

510

2,912

2,731

60,406

71,394

Share capital
Capital surplus

10,043
10,066

10,043
10,067Retained earnings
Treasury shares

41,385(79)

42,304(79)

Total shareholders' equity

61,41562,335

1,383

1,724

1,363
2,383

1,845
2,346

5,130

5,916

Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests

5,453

5,340

Total net assets

72,00073,591

132,407

144,986

Total liabilities and net assets―6―

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
Three months ended
March 31, 2023
(from January 1, 2023
to March 31, 2023)
40,81923,067
17,752(Millions of yen)Three months ended
March 31, 2024
(from January 1, 2024
to March 31, 2024)
42,04923,85618,192

1,705
707
252
16
3,509
944
314
394
21
365
711
3,276
12,220

1,717
988
171
22
3,674
1,030
341
477
34
379
722
3,653
13,214

Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Commission income
Rental income from buildings
Other

5,532

4,978

26
3
31
6
11
47

48
1
46
32
10
43

Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses

126

182

9
3
13

7
4
12

5,645

5,148

0
3

0
4

4

4
0
3
－
0

Total extraordinary losses
Net income before income taxes

0
5
7
－
13
5,636

4
5,149

Income taxes - current
Income taxes - deferred

2,232
(543)

2,009
(465)

Total income taxes
Net income

1,688
3,947

1,543
3,605

Net income attributable to non-controlling interests
Net income attributable to owners of parent

58
3,889

75
3,530

Sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Transportation and storage costs
Advertising expenses
Promotion expenses
Provision of allowance for doubtful accounts
Salaries and allowances
Provision for bonuses
Travel and transportation expenses
Depreciation
Amortization of goodwill
Rent expenses on land and buildings
Research and development expenses
Other
Total selling, general and administrative expenses

Ordinary income
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on sale of non-current assets
Loss on retirement of non-current assets
Loss on sale of investment securities
Loss on valuation of investment securities―7―

Consolidated Statement of Comprehensive Income

Three months ended
March 31, 2023
(from January 1, 2023
to March 31, 2023)
3,947(Millions of yen)Three months ended
March 31, 2024
(from January 1, 2024
to March 31, 2024)
3,605

Other comprehensive income
Valuation difference on available-for-sale securities

82

343

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax

268
(55)

488
(41)

Total other comprehensive income

295

790

4,243

4,396

4,184

4,315

59

81

Net income

Comprehensive income(Breakdown)Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests―8―

(3) Notes to Quarterly Financial Statements(Notes to going concern assumptions)None to be reported.

(Notes in the event of significant changes in shareholders’ equity)
None to be reported.

―9―