1Year Ended March 31, 2024 (77th Term)

Financial Results Briefing
May 8, 2024

S.T. Corporation
Yo Kozuki, President & CEO

Regarding the governmental order to take measuresfor preventing the false description of “MORILABO Series”

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Today’s Briefing Agenda①Report on the Financial
Results Summary②Full-year Earnings Forecast

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Summary of the Business Performance in FY3/24■Decrease in net sales and profit■The sales of CLOTH Care declined, and thesales of AIR Care fell below the forecast.
■Investment in R&D and pet care business■Disposal of bad inventory

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Highlights of the Business Performance in FY3/24<Consolidated>

Decrease in net sales and profit
Consolidated

Sales
ratio

Vs.
Forecast

YOYNet sales¥44.5 bn

-95.9％

97.6％

Operating profit¥1.3 bn

3.0％

54.8％

55.5％

Ordinary profit¥1.9 bn

4.3％

68.9％

70.7％

Profit attributableto owners of parent¥1.3 bn

2.9％

67.1％

69.7％

Comprehensive
income attributableto owners of parent¥1.6 bn

82.5%

Dividend: ¥42 (¥40 in the previous fiscal year)
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Highlights of the Business Performance in FY3/24<Consolidated>
FY3/24
ActualNet sales
Cost of sales
Gross profit
Selling, generaland administrative
expenses

Operating profit

Sales ratio

YOY¥44.5 bn

-97.6％¥28.1 bn

63.1％

98.0％

¥16.4 bn

36.9％

96.8％

¥15.1 bn

33.9％

103.7％¥1.3 bn

3.0％

55.5％

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Highlights of the Business Performance in FY3/24<Sales in each Business Category>Business category

Sales

Composition
ratio

YOYAir Care(Air Fresheners andDeodorizers)¥20.3 bn

45％

103％

Cloth Care(Mothproofing Agents)¥7.1 bn

16％

89％

Thermal Care(Disposable Warmers)¥4.2 bn

9％

90％

Hand Care(Household Gloves)¥5.7 bn

13％

97％

Humidity Care (Dehumidifiers)¥2.9 bn

7％

97％Home Care(Other)¥4.3 bn

10％

101％

Total

¥44.5 bn

100％

98％

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7Factors behind the Increase/Decrease in Operating
Profit in FY3/24 <Consolidated>

営業利益5.7億円
増加 million yen
Operating profit
decreased
1,070
Factors behindincrease

1,776

Increase owing to the raised selling prices

367

Reduction of manufacturing costs, etc.
Decreases in loss on abandonment of178

goods, loss on valuation of inventory, etc.

Decreases in marketing expenses

152

Factors behinddecrease

Rising material costs-1,567

Decrease due to lower sales quantities-708

Augmentation of SGA, excluding
marketing expenses-686

Decrease due to selling price reduction-309

Sales deduction (such as rebates)-276

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Unit: Million yen
8Initiatives for FY3/24

To concentrate on existing core businesses toenhance profitability
Measures for coping with the skyrocketing ofcosts for raw materials
To continue initiatives in growing fields

To establish the base for surviving the ESG era

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AIR Care
The sales of mainly high value-added products
increased year on year.

The sales of the Premium Aroma series
grew by 128%, thanks to the contributionof new products, such as “For Sleep.”
SHOSHURIKI

SHOSHURIKI

Premium Aroma For Sleep

COMPACT FOR TOILET

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10CLOTH Care
Drop in sales due to the decrease of
the opportunities to buy products
Monthly shipment amount ofmothproofing agents of S.T.

Regarding the year on year
comparison of the market,
DS： Intage SRI+ M
Indicator: Estimated sales
Category: mothproofing agents(excluding those for dolls)
Spring season: Feb.-May 2023
Fall season: Aug.-Nov. 2023

Shift of the period ofpeak demand

Effect of thelingering summer
heatEffects of airtemperature

Apr. May Jun.

Jul.

Spring wardrobe change season(Feb.-Jun.)
91.1% year on year

Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.
Fall wardrobe change season(Aug.-Nov.)
98.5% year on year
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Status of Costs
Ratio of cost of sales rose, although selling
prices were raised.

Cost of sales ratio

62.8％

63.1％

(FY3/23)(FY3/24)

Worsening of the product mix, skyrocketing of raw
material prices, and exchange rate fluctuations
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12Effects of the Price Hike
Increase/decrease in gross profit (in Japan)

Disposable warmers

146% year on year

SHOSHURIKI SPRAY FOR TOILET

101% year on year

Kome-Touban

113% year on year

Dashu-Tan

94% year on year

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Overseas
Despite the healthy performance of Premium Air Care products,
overall performance declined year on year.
Variation in overseas sales (consolidated)
Before adoption ofAccounting Standard for
Revenue Recognition

Unit: 100 million yen

40
30

7.8
37

6.1
29

6.5
6.0
29

31

6.3

6.4

Composition of overseas sales (by region)

883％ year on year

Other11%630302041020084％ year on year

U.S.
41%

1.07 bn
87% year on year

Asia
39%

Europe9%

FY3/19 FY3/20 FY3/21 FY3/22 FY3/23 FY3/24

96％ year on year
Sales overseas

71％ year on year

Ratio of sales overseas
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B2B

Growth of B２B business

Sales grew 102% year on year.
Concentration on catalog-based mail orderbusiness (EC) targeted at enterprises

The ratio of sales of AIR Care products isgrowing.

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Progress Toward the Goal of Reducing SKUs by 30%

Reduced about 20% by the end of Mar. 2024

No. of SKUs

８５０６５８(End of Aug. 2023)(End of Mar. 2024)

Including this, year-end inventory amountdecreased by 10% year on year.
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Initiatives for Growing Domains

To invest in the growing “pet business”

To take over the “Nyantomo
Clean Toilet” Business(in June 2024)

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17Today’s Briefing Agenda①Report on the FinancialResults Summary②Full-year Earnings Forecast

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Strategies for FY3/25
Concentration on growing businesses that contribute tooverall performance

Recovery of the core businessMeasures for coping with the skyrocketing of costs

To develop the foundation for surviving the ESG era
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Growing Business that Contributes to Overall Performance(Pet Care)

Release of “Nyantomo Clean Toilet” in June

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Growing Businesses that Contribute to Overall Performance(AIR Care)

Securing a stable customer base and revenues

Enhancement of Premium Aroma with highadded value
Further development of the wellness domain(SHOSHURIKI Premium Aroma For Sleep)

Development of “SHOSHURIKI
COMPACT FOR TOILET”
To release new products for young
customers

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Recovery of the Core Business (CLOTH Care)

Increase of contact points with customers

To cope with the dispersionof the timing of seasonalchange of wardrobe
To develop “MUSHUDA NOTE”

To utilize digital promotion
YouTube・Instagram広告
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Expansion of Sales Channels

Expansion of sales channels in each business

B2B：Expansion of the air business
EC：To fit the characteristics ofcustomers, especially in the petcare business
Overseas: Development of Premium Air
Care products in Thailand
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Measures for Coping With the Skyrocketing of Costs

To continue cost reduction measures

SKU reduction × High added value
strategy

To raise the prices of some products
Manufacturing cost reduction
measures (modifying methodsand specs）

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To Develop the Foundation for Surviving the ESG Era

To tighten our governance system forsustainability

Bord of Directors

Audit Committee

Board of Executive
Officers

Internal Audit

Sustainability Council
Risk
ManagementCommittee

EnvironmentalCommittee

Human Rights
ComplianceCommittee
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HealthCommittee

PL Committee
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Strengthening of the Quality Management System

Rigorous customer-first policy

Establishment of Total Quality
Management Division department
Customer Relation Office is directly
managed by the president

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Factors behind the Increase/Decrease in Operating
Profit in FY 3/25 <Consolidated>

Up 700 million yen thanks to the increasein sales quantity
Factors behindincrease

3,009

Increase in sales quantity
Increase owing to the raised selling prices

819

Reduction of manufacturing costs, etc.

375

Factors behinddecrease-2,177

Augmentation of SGA,
excluding marketing expenses

Sales deduction (such as rebates)

-842
-326

Rising material costs
Increase in marketing expenses
Increases in loss on disposal of goods,
loss on valuation of inventory-125

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-70

Unit: Million yen27

Forecast for FY3/25 <Consolidated>

Increase in net sales and profit
Consolidated

YOYNet sales¥49.2 bn

110.6％

Operating profit¥2.0 bn

149.1％

Ordinary profit¥2.3 bn

119.2％

Profit attributable toowners of parent¥1.4 bn

109.8％*The figures are rounded down.

Estimated dividend: ¥44*Payout ratio: 70.0％

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To Formulate a Medium-term Management Plan

Disclosure of the medium-term management plan

May 20 (Mon): To disclose its outline (ourwebsite and press release)

May 23 (Thu): Session for explaining itsdetails (to analysts and the press)

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To become a company that creates
new value while conducting
business administration involving
all staff members

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がとう・免責文

S.T. Corporation

https://www.st-c.co.jp/【Notes on the business forecasts】 The items included in this material are based on a variety of premises,and do not assure or guarantee that the numerical forecasts and policies herein will be realized.
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