Earnings briefing materials for 29.0f the fiscal year ending December 2023 08/08/2023 Representative Director, President & CEO Katsunori Kawabata Earth Corporation
2H
.
Sales
: 90.3 billion yen (vs. the forecast: -3.4%; -3.1 billion yen)
Operating Income : 9.92 billion yen (vs. the forecast: -8.1%; -880 million yen)

We believe there is plenty of room for the Company to offset this profit
underperformance versus the forecast in 1H. Given this, the full year forecast
remains unchanged
Initiatives to be executed in 2H Results in the Insecticides and Repellents segment exceeding the 2H forecast and a decrease in
1 Earth Corporation Financial Result Highlights of 2Q FY 12/2023
■ (Unit: 0.1 billion JPY) Increase in sales, decrease in operating income. While both sales and operating income fell short of the forecast, we believe this can be offset in 2H. ■ We registered year-on-year growth in insecticides and repellents, which saw its market share in Japan grow. Household products faced a challenging environment, with bath salts and masks, in particular, struggling. ■ We were able to recover from the impact of soaring raw material prices thanks to the execution of cost pass- throughs. However, changes in sales composition impacted profits.
3
(Unit: 0.1 billion JPY) An operating income underperformance versus the forecast in 2Q (April – June)  negatively ■ impacted 1H results ■ We expect the impact from soaring raw material prices to be less pronounced in 2H and beyond Q3
Quarterly △ 45.8 ▲ 32.0
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■ (Unit: 0.1 billion JPY) We offset the negative impact from soaring raw material prices (-1.75 billion yen)  through the execution of cost pass-throughs (+2.32 billion yen) Sales volume fell by 15% YoY for products for which prices were revised, but this impact was offset by the positive effects of higher unit prices Changes in the sales composition (excluding price revisions) and an increase in SG&A expenses weighed down on operating income Decrease factors (-47.6)
Increase factors (+27.4)
Soaring raw material prices -17.5 Cost pass-throughs Sales Δ (Excluding price revisions) Change in sales composition Personnel expenses Distribution expenses Advertising expenses R&D expenses Expenses from sales activities Other expenses Goodwill amortization 23.2 (Breakdown) Impact of sales volume decrease: -900 million JPY Positive impact of higher unit prices: 3.22 billion JPY ■ ■
(Unit: 0.1 billion JPY) ■ Unit prices increased as expected, through the execution of cost pass-throughs. However, sales volume for the products that underwent this price revision fell 7% short of the forecast ■■ A sales performance falling short of the forecast for product lines featuring high levels of profitability and changes in the sales composition weighed down on operating income ■ Expenses were within the forecast range Decrease factors (-21.5) Increase factors (+12.8) Cost pass-throughs Sales Δ vs. forecast (Excluding price revisions)   -9.0 Change in sales composition Personnel expenses Distribution expenses Advertising expenses R&D expenses Expenses from sales activities Other expenses Goodwill amortization
(Unit: 0.1 billion JPY) ■ Insecticides and Repellents: Domestic sales grew YoY, while overseas sales grew, particularly in ASEAN ■ Household products: Results were negatively impacted by a YoY decrease and underperformance versus the forecast for bath salts and masks, resulting from changes in the business climate ■ Total Health Care System: Made strong progress in the acquisition of annual contracts, and this translated into an increase in sales ■ Last FY (Realized) ■ Current FY (Forecast) ■ Current FY (Realized) 39.7 39:2 40.7 Insecticides & Oral Hygiene Bath salts Other Household Pet supplies, etc. Total Health Care Repellents products products System YoY diff.
- 3.2
- 0.9
+ 3.6 © Earth Corporation  All Rights Reserved. 7
Market overview & Earth Corporation’s market share as of 06/30/2023 【Market YoY】 【Market share】
100.3%
57.3% +0.9pt
■■ Temperatures slightly above the 5-year average While sales of insecticides for flies and mosquitoes and insect repellents decreased YoY, sales of cockroach insecticides and insecticides for other unpleasant pests drove market growth
Trends in new products
MAMOROOM Essence Pearl 1 8:5% vs. forecast MAMOROOM Essence Stick vs. forecast *To outside customers (excludes internal eliminations) Sales change factors (vs. Forecast) Contribution from new products Cost pass-throughs: unit price Cost pass-throughs: sales volume Other existing products Overseas Trends in core products Black Cap 101% vs. forecast EARTH NO MAT
*To outside customers (excludes internal eliminations) Market overview & Earth Corporation’s market share as of 06/30/2028 【Market YoY】 【Market share】
93.U%
45.1% -2.0pt D-19 pandemic has dissipated somewhat, ng in a YoY decrease for the market, ieveis remain higher than pre-CO tor our mainstay products decreased , with only products for children growth Trends in n new products & BARTH . Onpo Kids 110% vs. forecast E Neut © Earth Corporation  All Rights Reserved. Trends in core products Japan’s Famous Hot Spring product line 99% Kikiyu vs. forecast • Onpo vs. forecast BATHCLIN / Bath Roman 85%
(Unit: 0.1 billion JPY) ■ The impact amount as of the end of 2Q stood at 1.75 billion yen, out of a full year impact amount forecast of 2.5 billion yen ■   From its inception, the forecast expected the impact to be more pronounced in 1H, so we consider these results to be in line with the forecasts
Rising COGS
I Ingredients ■ Containers / Packaging materials ses across the board, for PET ■ Processing expenses
(Unit: 0.1 billion JPY) ■■ Overall, SG&A expenses were within the forecast range, even with advertising and R&D expenses being carried over into the third and fourth quarters. As of the end of 2Q, SG&A expenses stood at -
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(Unit: 0.1 billion JPY) ■ Registered strong growth, centered primarily around Thailand (+10% YoY)  and Vietnam (+14% YoY) Results in China (-28% YoY)  were negatively impacted by a weak sales performance on third-party e-commerce sales channels While the impact from soaring raw material prices has abated somewhat, sales weakness in our business in China weighed down on results. Consequently, operating income margin had decreased as of the end of 2Q
Overseas sales (Includes cross-border EC)
Overseas Ol (Simple sum)
Effective YoY sales on a local currency basis: -4%
Categories offered
. Insecticides & repellents . Air fresheners • Mouthwash
prices has slowed down, leading to gross margin improvements • Cost pass-throughs in the category of air fresheners ➡ Price increases of 10% - 15% . SG&A expenses are under control, falling within the forecast range
Effective YoY sales on a local currency basis: +10% ransactions.
Categories offered
. . Detergent Air fresheners Insecticides & repellents •
1H in review
Future measures
. Strong sales performance in the categories offered • . By making suggestions to MTs for improvements in product planograms for insecticides & repellents, we succeeded in expanding placement of our products at stores . The trend of soaring raw material prices has slowed down, leading to gross margin improvements . An increase in sales was accompanied by achieving an increase in operating income and improvements in operating income margin Aim to further grow our market share by expanding shipments •  Insecticides & repellents: 8.8% →11% (No.3) •  Air fresheners: 20.7%→24% (No.2) • Expand the number of companies introducing Mondahmin
Effective YoY sales on a local currency basis: -28%
Categories offered
. . Insecticides & repellents Household products • Mouthwash
1H in review

Some of our product categories did better than other during this year’s “618 sale” event, with sales decreasing significantly in the two
We registered an increase in the ratio of sales promotion expenses to sales, as we spent resources on sales promotion ahead of the 618 sales event • . Reactionary increase in expenses from sales activities following the end of COVID-19 restrictions
Future measures
. Review the products in the categories offered •  Review and reduce SKU numbers Offer staple products that have demand all year-round, like mouthwash and detergent Also leverage e-commerce channels other than JD.com and enhance our offering of physical channels Adequate management of costs through the introduction of systems

Local subsidiary results
0.1  3  3  3
Effective YoY sales on a local currency basis: -16%
1H in review
We were unable to carry out sales activities as planned due to a shortage in sales personnel (Others) Established a local subsidiary in 2019. The COVID-19 pandemic broke out soon afterward, so for all intents and purposes, operations had been on hold This business entered the scope of the consolidated PL in 2022
Future measures
Increase personnel and build up the sales structure Increase the number of business discussions Increase the number of shipments Enhance our efforts in the West Malaysia area, which accounts for 80% of the market Offer planogram suggestions Increase the number of SKUs carried
Local subsidiary results
(0.1   3          3      3      3
Effective YoY sales on a local currency basis: —
1H in review

(Others) Carried out the M&A of a company in the country, acquiring 66.7% of outstanding shares
Future measures

Proposals of products matching different retail business types
Offer and improve planogram suggestions Earth Corporation Initiatives Going Forward / Full Year Results Forecast
■ Execute additional cost pass-throughs for some products in the categories of bath salts and mouthwash, starting in September (Outside the initial forecast) ■ Unit price revisions of between 5% and 7% Target products (Selected examples) npo” series “Mondahmin Premium Care” series (1,080mL+) Target products
■ The release of new fall products does not feature in the initial forecast, so we expect this to make a positive sales and profit contribution ■ Unlock demand for insecticides & repellents in the fall and winter months, launching new ambitious products with the objective of building up a new market We will be carrying out a large-scale renewal of our core products in the category of bath salts, so we expect this to translate into sales results exceeding the forecasts for 2H ■ Insecticides & repellents
(Unit: 0.1 billion JPY) ■ As of the end of 2Q, operating income stood at 9.92 billion yen (vs. forecast: -880 million yen). However, taking into account recent result trends and initiatives going forward, we expect to be able to stage a recovery in 2H.
No changes from the previous results announcemen (Unit: 0.1 billion JPY) ■ The plan remains as announced in February 2023, in light of initiatives to be carried out in 2H and measures to secure a recovery
【Shareholder Returns Policy】 ■ Adopt an agile approach and, should our performance and retained earnings levels allow it, consider raising dividends and/or executing share buybacks ■  KPI: DOE (Dividend on Equity Ratio) 4～5％
DOE (Dividend on Equity Ratio) 2022 2023 (Forecast) Consolidated Dividend Payout Policy 2022 2023 (Forecast)
Social "Health & inagemen nization – White康経営優良法人Health and productivityホワイト500 Earth Corporation certified as a “Health & Productivity Management Outstanding Organization – White 500" company (earth.jp)* ESG Investment time as a Sompo Sustainability Index Selected as a component of the SOMPO Sustainability Index (earth.jp)
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* Only available in Japanese
23
Earth Corporation Supplementary Materials; FY12/2023 Q2 Results
Depreciation 8,000
supplement 8

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This presentation contains forward-looking statements and financial results forecasts. These forward-looking statements and financial results forecasts were formulated on the basis of company assumptions based on the information available. These statements and forecasts are subject to risks and uncertainties that could cause actual results to differ materially from those described.