Slide 1: Earnings Briefing Materials for the Fiscal Year Ended December 2024
Earnings Briefing Materials for the Fiscal Year Ended December 2024 February 13,2025
Slide 2: Executive Summary
Executive Summary Sales: 169.27 B yen (vs. forecast: 102.6%; +4.27 B yen) Operating Income: 6.42 B yen (vs. forecast: 214.2%; +3.42 B yen) • Insecticides & Repellents: Growth thanks to favorable weather & price revisions. • Household Products: Successful recovery efforts in 2H in core categories of
Slide 3: FY 12/2024 – Financial Result Highlights
FY 12/2024 – Financial Result Highlights
Slide 4: Financial Result Highlights
Financial Result Highlights (Unit: 0.1 B JPY) YoY increase in sales & profits; Sales & profit overperformance vs. forecast. (vs. November revised forecast – Sales: +1.27 B yen; Operating Income: +420 M yen) ①Met sales targets with ②COGS margin and ③SG&A expenses as expected. This allowed us to m
Slide 5: Management Accounting Basis: Sales / GPM
Management Accounting Basis: Sales / GPM (Unit: 0.1 B JPY) Domestic – Insecticides & Repellents: Drove market growth; Higher sales & price revisions led to a profit improvement. Domestic – Household Products: Despite slightly lower sales, initiatives allowed us to improve gross profit margin, wi
Slide 6: Domestic: Insecticides & Repellents Status Update
Domestic: Insecticides & Repellents Status Update (Unit: 0.1 B JPY) Market showed YoY growth thanks to favorable weather and price revisions. Shipments were higher YoY consistently throughout the season and growth was especially pronounced toward the latter part. Hot weather lasting later into
Slide 7: Domestic: Insecticides & Repellents Status Update②
Domestic: Insecticides & Repellents Status Update② Cockroach/pest control products & insect repellents continued to drive market growth. Growth from new products designed to address market needs and the positive effects of price revisions contributed to results. New Product Trends Effects of Pri
Slide 8: Domestic: Household Products (Bath Salts) Status Update
Domestic: Household Products (Bath Salts) Status Update Boost to store sales from higher advertising spend and promotional campaigns leveraging social media. Continue working to improve profitability by changing existing product formulations, etc. Flagship products - Flagship products - Market S
Slide 9: Domestic: Household Products (Mouthwash) Status Update
Domestic: Household Products (Mouthwash) Status Update Improved shipments thanks to a contribution from the “Damon” product line aimed at younger demographics. Improved store sales of the “Mondahmin” product line. Reduced the number of SKUs (limited edition products, etc.) and worked to improve
Slide 10: Overseas: Status Update (ASEAN Core)
Overseas: Status Update (ASEAN Core) (Unit: 0.1 B JPY) Overseas sales have grown to exceed 20.0 B yen; Strong results in this segment, which is a top priority within the MTBP. Thailand – YoY: 110.2%; Vietnam – YoY: 118.8%; Significant sales increases on a yen-denominated basis. Thailand Vietnam
Slide 11: Overseas: Status Update (Expansion in ASEAN, China, Exports)
Overseas: Status Update (Expansion in ASEAN, China, Exports) (Unit: 0.1 B JPY) Strong results in Malaysia. While we recorded an impairment on goodwill & intangible assets in the Philippines, we continued to see sales growth. Results in China bounced back after a large sales decrease in 2023; Exp
Slide 12: General Environment and Sanitation Business Status Update
General Environment and Sanitation Business Status Update YoY: +2.8 B yen; vs. forecast: +1.8 B yen – achieved a significant sales increase as this business now does 30.0+ B yen in sales. Steady growth in the number of contracts & contract amounts, thanks to greater demand for hygiene control se
Slide 13: Operating Income Change Factors (vs. Forecast)
Operating Income Change Factors (vs. Forecast) (Unit: 0.1 B JPY) While raw material prices soared to a degree exceeding Company forecasts, price revisions allowed us to absorb this impact. Carried out additional advertising spend in 2H as part of our initiatives related to household products.
Slide 14: Recorded an Extraordinary Loss
Recorded an Extraordinary Loss Net income was down YoY primarily on account of an extraordinary loss of 1.46 billion yen recorded in 2024. No impact on current cashflow. Item Details Impairment loss on goodwill • The business climate has diverged from Company expectations and intangible assets a
Slide 15: MTBP – First Year Review
ON (65° Earth Corporation EARTH Act For Life MTBP — First Year Review
Slide 16: MTBP – Operating Income Forecast
MTBP – Operating Income Forecast (Unit: 0.1 B JPY) In 2024, sales of Insecticides & Repellents benefited from favorable weather, so we expect around 5.5 B yen in operating profit as an actual value without favorable weather. Our earnings power has increased thanks to the benefits of price revision
Slide 17: Feb. 2024 – Announced New MTBP
Feb. 2024 – Announced New MTBP © Earth Corporation All Rights Reserved. 16
Slide 18: Goal of Structural Reform
Goal of Structural Reform Aiming to become a “stronger Earth Group”, we will optimize our business portfolio and reorganize the allocation of resources. Domestic Overseas 1 2 3 Model: Model: Enhance our Achieve high Overseas growing our brands expansion Global model levels of market share profitab
Slide 19: Group Restructuring Initiatives
Group Restructuring Initiatives Shift to a holdings company structure Optimal resource allocation to catalyze further growth for the Earth Group © Earth Corporation All Rights Reserved. 18
Slide 20: Aim of Shift to Holdings Company Structure
Aim of Shift to Holdings Company Structure Put in place whole-Group strategy proposal support functions and optimize resource allocation in order to achieve “Rapid decision-making,” the “Enhancing of the management control system,” and the “Selection and concentration of management resources.” Bef
Slide 21: Addressing Soaring Raw Material Prices
Addressing Soaring Raw Material Prices (Unit: 1 B JPY) As of the end of 2024, we hadn’t yet been able to completely offset the cumulative impact of soaring raw material prices over the 3-year period starting in 2022. However, 2025 is when we expect cost reductions and price revisions to allow us t
Slide 22: SKU Reductions
SKU Reductions Achieved our initial SKU reduction target of 30%. Reduced inventory turnover days, contributing to an increase in cash. We will continue further efforts to rationalize SKUs while simultaneously doing product launches for growth categories/channels. SKUs (Earth Corporation: non-c
Slide 23: Initiatives Toward Human Capital Management
Initiatives Toward Human Capital Management We are executing initiative themes built upon the 4 human capital materialities listed below. Drive well-being to engage diverse talent and empower them to develop the career (White boxes indicate initiative themes) Acquire and foster human resources req
Slide 24: ESG: Recognition by Outside Entities
ESG: Recognition by Outside Entities The Earth Group continues accelerating its ESG efforts, which are increasingly being recognized by outside entities. Recognition by Outside Entities In recent years, MSCI, FTSE, and S&P Global have gradually started to recognize the Earth Group’s efforts in ESG
Slide 25: Progress vs. 2026 Quantitative Targets
Progress vs. 2026 Quantitative Targets Topline results close to 2026 targets; Overseas as a percentage of sales continues growing at a strong pace. We seek to further improve profitability. 2023 results 2024 results YoY 2026 target Profitability Consolidated sales 158.3 B yen 169.2 B yen + 10.9
Slide 26: Profitability & Capital Efficiency Status Update
Profitability & Capital Efficiency Status Update (Unit: 0.1 B JPY) ROIC more or less in line with the previous year. Expected WACC rose slightly and EVA spread decreased slightly YoY. Debt decreased thanks to working capital optimizations, e.g., improvements in inventory efficiency. Also deliver
Slide 27: FY 12/2025 Forecast Outline
Gn (aan ‘es= Earth Corporation Act For Life FY 12/2025 Forecast Outline
Slide 28: Business Portfolio Targets
Business Portfolio Targets Leverage the 4 pillars of our operations in Japan, Overseas, the General Environment and Sanitation Business, and MA-T to grow profits. General Environment and Japan Overseas Sanitation Business MA-T Minimize seasonality effects Overseas business as a Develop a new busin
Slide 29: 2025: Forecast Highlights
2025: Forecast Highlights (Unit: 0.1 B JPY) Expect one-off expenses (1.5 B yen) associated with structural reform, e.g., preparations toward management integration with BATHCLIN Corporation, etc. Despite an increase in fixed expenses, especially personnel & advertising, we expect greater earning
Slide 30: Management Accounting Basis: Sales / GPM (2024 vs. 2025)
Management Accounting Basis: Sales / GPM (2024 vs. 2025) （Unit: 0.1 B JPY) Domestic - Insecticides & Repellents: We expect higher sales & profits thanks to price revisions leveraging the strength of our brand. Domestic - Household Products: We plan the active deployment of advertising resources,
Slide 31: Shareholder Returns
Shareholder Returns 【Shareholder Returns Policy】 Earth is committed to the distribution of stable dividends and will consider dividend raises and share buybacks in a flexible manner comporting with company results and retained earnings. 2025: We are guiding for a 2 JPY increase in the dividend p
Slide 32: Japan MA-T Industrial Association exhibit at Expo 2025 Osaka-Kansai
Japan MA-T Industrial Association will hold an exhibited titled “Future Healthcare” at the Osaka Healthcare Pavilion at the Expo 2025 Osaka-Kansai. 〜Future oral care and environmental care through MA-T / Bringing smiles to pets and families〜
Slide 33: Supplementary Materials: FY12/2024 Results
Supplementary Materials: FY12/2024 Results
Slide 34: Consolidated: Statement of Income
Consolidated: Statement of Income (FY24 Realized & FY25 Forecast) （Unit：million JPY） 4Q FY23 4Q FY24 4Q FY24 VS YoY vs.FCT FY12/25 Results Forecast Results +/- YoY +/- FCT Forecast YoY Sales 158,344 165,000 169,278 10,933 106.9% 4,278 102.6% 175,000 103.4% Cost of sales 94,719 99,168 100,309 5,589 1
Slide 35: Consolidated: Sales by Segment
Consolidated: Sales by Segment (FY24 Realized & FY25 Forecast) （Unit：million JPY） 4Q FY23 4Q FY24 4Q FY24 VS YoY vs.FCT FY12/25 Results Forecast Results +/- YoY +/- vs.FCT Forecast YoY Insecticides & Repellents 62,031 65,175 69,744 7,712 112.4% 4,568 107.0% 71,362 102.3% Oral hygene products 8,364 8
Slide 36: Consolidated: SG&A Expenses
Consolidated: SG&A Expenses (FY24 Realized & FY25 Forecast) （Unit：million JPY） 4Q FY23 4Q FY24 4Q FY24 VS YoY vs.FCT FY12/25 Results Forecast Results +/- YoY +/- vs.FCT Forecast YoY Personal expenses 21,607 23,215 23,588 1,980 109.2% 373 101.6% 23,278 98.7% Shipping costs 4,594 5,049 4,853 259 105.6
Slide 37: Consolidated: Balance Sheet
Consolidated: Balance Sheet (FY24 Realized) （Unit：million JPY） End of End of VS 23 FY23 FY24 +/- Current Cash & deposits 17,505 17,007 - 497 assets Trade receivable 25,639 25,521 - 118 Inventories 28,266 29,885 1,619 Others 2,758 2,752 -5 Non-current Property, plant & equipment 31,383 31,443 60 asse
Slide 38: Consolidated: Statement of Cash Flows
Consolidated: Statement of Cash Flows (FY24 Realized) （Unit：million JPY） End of Q4 End of Q4 YoY FY2023 FY2024 Cash flows from operating activities 7,524 13,964 6,439 Cash flows from investing activities - 10,135 - 5,280 4,855 Cash flows from financing activities 4,893 - 9,901 - 14,794 Effect of exc
Slide 39: Overview of Group Companies' Business Performance (FY24 Realized)
Overview of Group Companies' Business Performance (FY24 Realized) （Unit：million JPY） Earth Corporation BATHCLIN Corporation Hakugen Earth Co., Ltd. Earth Pet Co., Ltd. FY23.4Q FY24.4Q FY24.4Q FY23.4Q FY24.4Q FY24.4Q FY23.4Q FY24.4Q FY24.4Q FY23.3Q FY24.4Q FY24.4Q Results Forecast Results Results For
Slide 40: Consolidated: Capital expenditure, Depreciation expenses
Consolidated: Capital expenditure, Depreciation expenses （Unit：million JPY） FY2021 FY2022 FY2023 FY2024 FY2025 FY2021 FY2022 FY2023 FY2024 FY2025 Results Results Results Results Forecast Results Results Results Results Forecast CAPEX 2,928 5,878 7,504 4,376 4,952 Depreciation 3,537 3,853 4,118 4,424
Slide 41: FY24 Operating Income Change Factors (YoY)
FY24 Operating Income Change Factors (YoY) Significant increase in profit due to the effect of higher sales, mainly of Insecticides and Repellents. The impact of raw material price hikes was absorbed by the effect of price revision measures. Various expenses have increased due to the investmen
Slide 42: Overseas Results (FY19-24 Realized)
Overseas Results (FY19-24 Realized) (Unit: 0.1 billion JPY) Overseas sales (Includes cross-border EC) Overseas OI (Simple sum) 220 Exports / Cross-border EC 20 Operating Income China 199.9 7.2% 200 Operating Philippines Income Margin 180 Malaysia 36.6 165.0 Vietnam 15 160 149.0 6.3% Thailand 33.0 20
Slide 43: FY25 Operating Income Forecast
FY25 Operating Income Forecast (Quarterly/Cumulative) (Unit: 0.1 billion JPY) Q1 Q2 Q3 Q4 51.0 57.8 59.0 49.8 Quarterly 55.3 43.9 -7.0 -0.7 -5.0 -28.5 -42.6 -40.0 107.6 110.0 106.9 105.0 Quarterly 64.3 65.0 49.8 51.0 Cumulative 99.2 92.2 55.3 63.7 23 24 25 23 24 25 23 24 25 23 24 25 Results Results
Slide 44: Forward-looking statements notice
23 Results 24 Results 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 sub