Slide 1: Earnings Briefing Materials for 2Q of the Fiscal Year Ending December 2024
Earnings Briefing Materials for 2Q of the Fiscal Year Ending December 2024 08/09/2024
Slide 2: Executive Summary
Executive Summary Sales: 97.09 B yen (vs. forecast: 102.5% +2.39 B yen) Operating Income: 10.75 B yen (vs. forecast: 136.2% +2.85 B yen) • Sales overperformance vs. forecast coupled with better-than-expected COGS ratio and SG&A results led to significant profit growth in 2Q. 24.2Q • As of 2Q, cost p
Slide 3: Financial Result Highlights of 2Q FY 12/2024
Financial Result Highlights of 2Q FY 12/2024
Slide 4: Financial Result Highlights
Financial Result Highlights (Unit: 0.1 billion JPY) Increase in sales and income. Sales overperformance vs. the forecast coupled with ① COGS ratio and ② SG&A overperformance allowed the Earth Corporation to reach its income targets. Delays in the use of sales promotion expenses, leftover dispo
Slide 5: Management Accounting Basis: Sales / GPM (2023 vs. 2024)
Management Accounting Basis: Sales / GPM (2023 vs. 2024) (Unit: 0.1 billion JPY) Domestic - Insecticides & Repellents: Sales mostly in line w/ the forecast while profit margin exceeded expectations. Domestic - Household products: Sales of bath salts & oral hygiene products didn’t meet the foreca
Slide 6: Domestic: Insecticides & Repellents Status Update
Domestic: Insecticides & Repellents Status Update Strong April - June market performance lapping last year‘s results, also thanks to favorable weather. Market growth driven by sales of insecticides to eliminate cockroaches/pests, and repellents. Conversely, sales of fly and mosquito insecticide
Slide 7: Domestic: Household Products Status Update
Domestic: Household Products Status Update The Earth Corporation dropped in market share for bath salts and mouthwash products due to heightened market competition. We are preparing a strategy to regain ground in 2H. Bath salts (as of 6/30) Oral hygiene (as of 6/30) 【Market YoY growth】 【Earth’s
Slide 8: Overseas – Status Update (ASEAN)
Overseas – Status Update (ASEAN) (Unit: 0.1 billion JPY) ASEAN Core Area (Thailand & Vietnam) ASEAN Expansion Area (Malaysia & Philippines) While sales fell slightly short of the target on Significant sales overperformance. Malaysia Thailand a local currency basis, this nevertheless Strong res
Slide 9: Overseas – Status Update (China & Exports Business)
Overseas – Status Update (China & Exports Business) (Unit: 0.1 billion JPY) China Exports Business Significant sales growth for both offline & EC. Grow our offerings of insecticides & repellents. M. East Continued LFY’s strong performance with new Domestic Introduction of five priority sales
Slide 10: General Environment and Sanitation Business – Status Update
General Environment and Sanitation Business – Status Update YoY: +1.5 B JPY (+10.7%); Vs. forecast: +1.2 B JPY (+8.1%); Significant sales growth. Steady growth in annual contract numbers drove growth. General Environment and Sanitation Business – Trend in Annual Contract Numbers Reasons behind t
Slide 11: Operating Income Change Factors (Vs. Forecast)
Operating Income Change Factors (Vs. Forecast) As of 2Q, we have been able to offset the negative impact of soaring raw material prices through the execution of price revisions. We met our sales target, leading to an increase in gross profit. SG&A was also lower than expected and some of these e
Slide 12: Consolidated: Balance Sheet
Consolidated: Balance Sheet (Unit: 0.1 billion JPY) ① Inventories (-4.3 B JPY): Benefits from inventory optimization starting in 2H LFY. ② Borrowings (-3.7 B JPY): Inventory optimization led to lower cash requirements. 2023.2Q 2024.2Q Change Total assets 1,499.2 1,548.7 ＋49.4 Cash & deposits 187.2 2
Slide 13: Full Year Results Forecast
OS (s2" Earth Corporation EARTH Act For Life Full Year Results Forecast
Slide 14: Progress Vs. OI Target (Quarterly/Cumulative)
Progress Vs. OI Target (Quarterly/Cumulative) We do expect an overperformance for 2H, as well, but we face challenges from: ① weather-related risk factors, ② higher COGS than expected, ③ recording of expenses not used in 1H. Additionally, we will also consider the strategic deployment of ④ sales p
Slide 15: 2024 Results Forecast
2024 Results Forecast While we are hopeful for a year-end results overperformance, the forecast targets disclosed 02/13/2024 remain unchanged. Earth Corp. is evaluating various factors/risk scenarios and will aim for transparent disclosure. (Unit: 0.1 billion JPY) 2024 Forecast Topics 2023 Reali
Slide 16: Shareholder Returns
Shareholder Returns Shareholder Returns Policy: Stable dividend distribution with a DOE target of around 4%. Consider an agile approach to dividend raises and share buybacks. 2024 dividend target: 120 JPY/share (incl. a 2 JPY/share commemorative dividend). Completed share buyback: 2.0 B JPY; 4
Slide 17: Topics: ESG Investment
Topics: ESG Investment The Earth Corporation was selected as a component of the FTSE Blossom Japan Index and the FTSE Blossom Sector Relative Index – two indices related to ESG investment. Selected as a component of the ESG investment indices FTSE Blossom Japan Index and FTSE Blossom Japan Sector
Slide 18: Supplementary Materials: FY12/2024 2Q Results
Supplementary Materials: FY12/2024 2Q Results
Slide 19: Consolidated: Statement of Income
Consolidated: Statement of Income （Unit：million JPY） 2Q累計 2Q FY23 2Q FY24 2Q FY24 VS YoY vs.FCT FY12/24 Realized Forecast Realized +/- YoY +/- FCT Forecast YoY Sales 90,329 94,700 97,095 6,765 107.5% 2,395 102.5% 165,000 58.8% Cost of sales 51,346 54,644 55,695 4,348 108.5% 1,051 101.9% 99,168 56.2%
Slide 20: Consolidated: Sales by Segment
Consolidated: Sales by Segment （Unit：million JPY） 2Q FY23 2Q FY24 2Q FY24 VS YoY vs.FCT FY12/24 Progress Realized Forecast Realized +/- YoY +/- vs.FCT Forecast ratio Insecticides & Repellents 44,435 46,767 48,798 4,362 109.8% 2,031 104.3% 65,175 74.9% Oral hygene products 3,992 4,229 3,919 -73 98.2%
Slide 21: Consolidated: SG&A Expenses
Consolidated: SG&A Expenses （Unit：million JPY） 2Q FY23 2Q FY24 2Q FY24 VS YoY vs.FCT FY12/24 Progress Realized Forecast Realized +/- YoY +/- vs.FCT Forecast ratio Personal expenses 10,715 11,499 11,174 459 104.3% -325 97.2% 23,215 48.1% Shipping costs 2,337 2,612 2,464 126 105.4% -147 94.3% 5,049 48
Slide 22: Consolidated: Balance Sheet
Consolidated: Balance Sheet （Unit：million JPY） End of End of Final comparison End of VS 23 2Q FY23 2Q FY24 +/- FY23 +/- Current Cash & deposits 18,724 23,602 4,877 17,505 6,096 assets Trade receivable 38,114 39,403 1,288 25,639 13,764 Inventories 33,645 29,343 -4,301 28,266 1,077 Others 2,620 2,775
Slide 23: Consolidated: Statement of Cash Flows
Consolidated: Statement of Cash Flows （Unit：million JPY） End of End of Final comparison End of 2Q FY23 2Q FY24 +/- FY23 Cash flows from operating activities 4,336 15,199 10,863 7,524 Cash flows from investing activities -6,415 -2,710 3,705 -10,135 Cash flows from financing activities 5,651 -6,967 -1
Slide 24: Consolidated: Capital expenditure, Depreciation expenses
Consolidated: Capital expenditure, Depreciation expenses （Unit：million JPY） FY2020 FY2021 FY2022 FY2023 FY2024 FY2020 FY2021 FY2022 FY2023 FY2024 Realized Realized Realized Realized Forecast Realized Realized Realized Realized Forecast CAPEX 3,548 2,928 5,878 7,504 5,600 Depreciation 3,334 3,537 3,8
Slide 25: Overview of Group Companies' Business Performance
Overview of Group Companies' Business Performance （Unit：million JPY） Earth Corporation BATHCLIN Corporation Hakugen Earth Co., Ltd. Earth Pet Co., Ltd. FY23.2Q FY24.2Q FY24.2Q FY23.2Q FY24.2Q FY24.2Q FY23.2Q FY24.2Q FY24.2Q FY23.2Q FY24.2Q FY24.2Q Realized Forecast Realized Realized Forecast Realize
Slide 26: Overseas Results
Overseas Results (Unit: 0.1 billion JPY) Overseas sales (Includes cross-border EC) Overseas OI (Simple sum) Exports / Cross-border EC Operating 120 20 Income 18.7% China 107.6 Operating Philippines Income Margin 18.2 100 Malaysia 15.4% 23.5 Vietnam 87.2 15 Thailand 80.0 80 17.7 69.4 15.1 66.7 16.7 5
Slide 27: Operating Income Change Factors (YoY)
Operating Income Change Factors (YoY) (Unit: 0.1 billion JPY) In 2Q, the impact of raw material price hikes was absorbed by the effect of price revision measures. Significant increase in profit due to the effect of higher sales, mainly of insect care products. Decrease factors （-26.4） Increase f
Slide 28: This presentation contains forward-looking statements and financial results forecasts. These forward-looking statemen…
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 unce