Press Release

Notice Regarding Sale of Shares in Taiko Pharmaceutical Co., Ltd. andContinuation of Business Alliance Agreement
July 8, 2022
Listed exchanges: Prime Market

Listed company name: Earth Corporation

Code: 4985

URL

: https://corp.earth.jp/en/index.html

Representative Director: Katsunori Kawabata, President & Representative Director

Contact: Tsuyoshi Mitsuzuka ,Senior Executive Officer
Director General
Group Management Headquarters

Tel: +81-3-5207-7458

Earth Corporation (the “Company”) hereby announces that its Board of Directors has resolved at a meeting
held on July.7, 2022, resolved to sell its shares in Taiko Pharmaceutical Co., Ltd. (the “Taiko”). The businessalliance agreement with Taiko will continue.
1.

Reason for sale of shares
The Company is continuously reviewing its policy shareholdings as required by the revised Corporate
Governance Code Based on this review, the Company has decided that the sale of the shares of Taikoheld by the Company will contribute to the improvement of corporate value.
The business alliance agreement between Taiko and the Company will continue regardless of the saleof shares, and the two companies will promote the joint development of products using chlorine dioxide.
In addition, the two companies will work together to promote the use of MA-T (Matching TransformationSystem®), an innovative oxidation control technology, for a wide range of applications including
infectious disease control, energy, life science, and materials development.

2.

Details of the sale of shares, etc.
The Company is currently considering the method and timeframe for the sale of the 2,398,800 shares(5.50% stake) of Taiko.

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Overview of Taiko Pharmaceutical Co., Ltd.

1. NameTaiko Pharmaceutical Co., Ltd.

2. Location

3-34-14, Uchihommachi Suita City, Osaka, Japan

3. Job title and name of

Takashi Shibata, President and CEO

representative
4. Description of businessPharmaceuticals Business, Infection Control Business

5. Share capital

1,201 million yen (As of December 31, 2021)

6. Date of establishment

November 18,1946

7. Number of issued shares

44,136,900 shares (As of December 31, 2021)

8. Major shareholders andTakashi Shibata

7.43%

ownership ratios

Hitoshi Shibata

7.40%(As of December 31, 2021)

ROYAL BANK OF CANADA SINGAPORE* Shareholding ratios are calculated

BRANCHI-CLIENT’S A/Cexcluding treasury stock.

9. RelationshipbetweenEarth Corporation and

6.00%

The Master Trust Bank of Japan, Ltd. (Trust Account)

5.85%

UBS AG HONG KONG

5.65%

Earth Corporation

5.50%

Akihiro Shibata

4.35%

Kowa Company, Ltd.

2.87%

Wataru Shibata

2.78%

Tetsu Shibata

2.74%

CapitalThe Company holds 2,398,800 shares (5.50%) in

relationship

Taiko but there will be no capital relationship after

Taiko Pharmaceutical Co., Ltd.

the completion of this share sale.
Personnel

There are no personal relationships which should

relationshipbe noted between the parties. In addition,
significant personal relationship exists between
persons or affiliated companies associated with thecompany and persons or affiliated companies
associated with the company in question.

Business

There are transactions between the Company andrelationship

Taiko based on a business alliance agreement.

-2-10. Operating results and financial positions for the last three years
Accounting Year

Year ending

Year ending

Year ending

March 31,

December 31,

December 31,

2020

2020

2021

Consolidated net assets

19,37322,781

12,807

Consolidated total assets

25,47331,75722,535

Consolidated net assets per share (Yen)

450.94525.83

293.88

Consolidated net sales

14,966

17,582

11,299Consolidated operating profit

3,824

5,650

△4,947

Consolidated ordinary profit

3,633

5,454

△6,131

Profit attributable to owners of parent

2,453

3,851

△9,594

Consolidated earnings per share (Yen)

57.57

89.18

△220.52

Dividend per share (Yen)

50.00

25.00

―(Unit; Millions of yen)

4.

Schedule

1. Date of resolution by theBoard of Directors
5.

July 7, 2022

Future outlook
This matter will have negligible impact on the consolidated financial results of the Earth Corporationgroup in the fiscal year ending December 2022.

Note: This document has been translated from the Japanese original for reference purposes only. In theevent of any discrepancy between this translated document and the Japanese original, the original
shall prevail.

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