Press Release

Notice Concerning Acquisition of Business
November 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 announced that on November 8, 2022, its Board of Directors decided to purchase the"BARTH" brand business developed by TWO Inc. and reached the following agreement with the company.
The Tokyo Stock Exchange's rules do not require timely notification of this company transaction, but theCompany has chosen to report it anyway because it believes it is important information. As a result, several
items and disclosure item details have been excluded.
1.

Reason for Business Acquisition
With "customer-oriented" as its guiding principle, the Company's group zealously pursues the alleviationof customer annoyance and dissatisfaction, and offers a wide range of unique and excellent goods andservices, such as insecticides & repellents, bath salts, oral hygiene products, and general environment& sanitation business.
Since its start in 2017, the "BARTH" company, which the Company will acquire, has experienced quick
growth and great brand loyalty thanks to product development that prioritizes neutral bicarbonate bathsalts and the value of nightly sleep. The business, according to the company, will continue to add value
through the development and distribution of functionally focused bathing and sleep-related goods aswell as the growth of its current items.
In anticipation of intangible synergies, such as the integration of marketing know-how and thedevelopment of the brand itself, we have made the decision to acquire this company by having theindividuals who have been involved in the development of the "BARTH" brand join our group.

2.

Overview of Business Acquisition(1) Details of business acquired
Development, manufacture and sale of medicated BARTH neutral bicarbonate bath salts, otherproducts containing neutral bicarbonate, and other "BARTH" brand products, and related
businesses-1-(2) Operating results of business acquired
Sales
Fiscal year ending August2022

Division Profits

1,838 million yen

361 million yen(3) Items and amounts of assets of business acquired
Inventories and intangible assets related to the acquired business(4) Acquisition price and method of settlement
Non-disclosure is required by the terms of the confidentiality agreement between the parties.
3.

Overview of the counterparty

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5.

Name
Location
Job title and name ofrepresentative
Description of business
Share capital
Date of establishment

TWO Inc.
JUNCTION space, 6-35-3 Jingumae, Shibuya-ku, TokyoYoshikazu Higashi, Representative Director and CEO
Planning, production, and sales of wellbeing business, etc.
100 million yen
December 21, 2015

Timetable

1. Date of resolution at the meeting of the Board of Directors

November 8, 2022

2. Date of conclusion of the agreement

November 8, 2022

3. Date of acquisition of business

March 1, 2023 (scheduled)

Overview of accounting treatments
It is anticipated that this business transaction will be categorized as an acquisition, and the amount of
goodwill involved in this treatment is now being investigated.

6.

Future outlook
The Company believes that this business acquisition will have little to no effect on the Group'sconsolidated financial results for the fiscal year ending December 31, 2022.

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