Slide 1: Earnings Briefing Materials for 3Q of the Fiscal Year Ending December 2024
Earnings Briefing Materials for 3Q of the Fiscal Year Ending December 2024 11/11/2024
Slide 2: Executive Summary
Executive Summary Sales ：134.85 B yen（vs forecast 101.6% ＋2.15 B yen） Operating Income ： 10.68 B yen（vs forecast 143.4% ＋3.23 B yen） • Insecticides & Repellents and Overseas : Results mostly in line with the forecast. • Household Products : Our flagship categories of bath salts & oral hygiene produc
Slide 3: Financial Result Highlights of 3Q FY 12/2024
Financial Result Highlights of 3Q FY 12/2024
Slide 4: Financial Result Highlights
Financial Result Highlights （Unit：0.1 billion JPY） vs forecast Sales +21.5 B yen, Operating profit +32.3 B yen. In addition to the achievement of the sales forecast, the cost of sales ratio and SG&A expenses progressed within the plan, enabling the company to achieve the forecast. Progress of
Slide 5: Management Accounting Basis: Sales / GPM
Management Accounting Basis: Sales / GPM （Unit：0.1 billion JPY） Domestic - Insecticides & Repellents : Sales exceeded plan and profit margin improved. Domestic - Household products : Bath salts and oral hygiene products fell short of plan. Overseas : Although sales fell short of the plan, they
Slide 6: Domestic: Insecticides & Repellents Status Update
Domestic: Insecticides & Repellents Status Update Favorable market due to favorable weather. Continued trend of market growth driven by cockroach, nuisance pest, and insect repellent products. Contribution from growth of new products and price revisions (+2.09 B yen y/y, +0.69 B yen vs. plan).
Slide 7: Domestic: Household Products Status Update
Domestic: Household Products Status Update Market share of bath salts and mouthwashes declined due to continued intensification of the competitive environment in the market. Bath salts and mouthwash contributed to the improvement of the shortfall in the plan, thanks to the effects of the recover
Slide 8: Overseas – Status Update
Overseas – Status Update （Unit：0.1 billion JPY） ASEAN Core Area (Thailand & Vietnam) Achieved sales targets in both yen and local currency terms. Thai 180 Promoted sales expansion to establish the new product “ARS 168.2 Mos Shooter” as a standard item. 162.9 Sales fell short of the plan in loc
Slide 9: General Environment and Sanitation Business – Status Update
General Environment and Sanitation Business – Status Update YoY: +2.2 B JPY (+9.9%); Vs. forecast: +1.5 B JPY (+6.4%); Significant sales growth. The situation that has been boosting results since July will continue, and the steady increase in the number of annual contracts and amounts will drive
Slide 10: Operating Income Change Factors (Vs. Forecast)
Operating Income Change Factors (Vs. Forecast) （Unit：0.1 billion JPY） Although the soaring cost of raw materials has had a greater impact than planned, the effects of the price revision measures have absorbed this. We met our sales target, leading to an increase in gross profit. SG&A was also lo
Slide 11: Full Year Results Forecast
OS (s2" Earth Corporation EARTH Act For Life Full Year Results Forecast
Slide 12: Revision to the full-year earnings forecast
Revision to the full-year earnings forecast Considering the current situation, the company announced an upward revision to its full-year earnings forecast on November 11th. Excluding one-time costs such as costs related to profit structure reform and strategic expenses, profit levels exceeded th
Slide 13: Progress of initiatives in the second half of the year
Progress of initiatives in the second half of the year We are promoting various measures to recover from the unmet plan in daily necessities in the first half of the year and to continue improving profitability. Contents Point • In response to the growing demand for Insecticides & Repellents in th
Slide 14: Progress Vs. OI Target (Quarterly/Cumulative)
Progress Vs. OI Target (Quarterly/Cumulative) （Unit：0.1 billion JPY） Additional investment in strategic expenses such as advertising in Q4. Excluding these effects, operating profit in Q4 is expected to be in line with the initial plan Q1 Q2 Q3 Q4 Quarterly 49.8 51.0 57.8 28.0 55.3 43.9 ▲ 7.0 ▲
Slide 15: Progress in Structural Reform
Progress in Structural Reform
Slide 16: 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 Model: Model: Enhance our Achieve high Overseas growing our brands expansion Global model levels of market share profitability
Slide 17: Promoting Group Reorganization for Structural Reform
Promoting Group Reorganization for Structural Reform Promoting portfolio management for 4 pillars: Domestic, Overseas, General Environment and Sanitation Business, and MA-T business. Implementing a group reorganization in Japan to optimize the household products division. Group-wide Domestic: Ho
Slide 18: Group restructuring ①: Enhancing group management structure
Group restructuring ① Enhancing of group management structure Establishing the HD system and promoting the optimization of resource allocation across the entire group. Building a system that achieves “Rapid decision-making”, “Enhancing of the management control system”, and “Selection and concen
Slide 19: Group restructuring ①: Reorganization of the bath salts business
Group restructuring ① Towards the reorganization of the bath salts business The bath salts business being carried out by the three companies Earth Corp, BATHCLIN, and Hakugen Earth will be promoted as a group in order to make it the next pillar of the domestic market after Insecticides and Repelle
Slide 20: Group restructuring ②
Group restructuring ② Policy on the reorganization of the bath salts business By formulating a group-wide bath salts business strategy and integrating the two companies Earth Corporation and BATHCLIN, the Earth Group aims to increase sales, expand market share and maximize profits. Earth Group Bat
Slide 21: Group restructuring ③
Group restructuring ③ Reallocation of group management resources Promote reallocation of group management resources by increasing the efficiency of unprofitable capital and maximizing human capital. Improving the efficiency of Closure of the unprofitable assets Plant Closure of the Kakegawa Plant
Slide 22: Other initiatives aimed at Earnings Structure Transformation
Other initiatives aimed at Earnings Structure Transformation Approaches to Earnings Structure Transformation are progressing smoothly overall. From next term onwards, we expect to incur transition costs related to organizational restructuring, as well as costs related to to Earnings Structure Tr
Slide 23: Earth Group's Medium-to-long-term Concept
Earth Group’s Medium-to-long-term Our Group Working Together Toward a Bright Tomorrow for EARTH Concept Next MTBP Transform the earnings structure & build a framework Drive sales: Overseas Drive revenue: Domestic Expand Profit Generate Cost Foundation in Enhance global expansion Synergies Grow Culti
Slide 24: Supplementary Materials: FY12/2024 3Q Results
Supplementary Materials: FY12/2024 3Q Results
Slide 25: Consolidated: Statement of Income
Consolidated: Statement of Income （Unit：million JPY） 3Q FY23 3Q FY24 3Q FY24 VS YoY vs.FCT FY12/24 Realized Forecast Realized +/- YoY +/- FCT Orig Forecast YoY Sales 126,769 132,700 134,858 8,089 106.4% 2,158 101.6% 165,000 81.7% Cost of sales 74,505 78,249 79,122 4,617 106.2% 873 101.1% 99,168 79.8
Slide 26: Consolidated: Sales by Segment
Consolidated: Sales by Segment （Unit：million JPY） 3Q FY23 3Q FY24 3Q FY24 VS YoY vs.FCT FY12/24 Progress Realized Forecast Realized +/- YoY +/- vs.FCT Orig Forecast ratio Insecticides & Repellents 57,248 60,398 62,827 5,578 109.7% 2,428 104.0% 65,175 96.4% Oral hygene products 5,799 6,448 6,008 209
Slide 27: Consolidated: SG&A Expenses
Consolidated: SG&A Expenses （Unit：million JPY） 3Q FY23 3Q FY24 3Q FY24 VS YoY vs.FCT FY12/24 Progress Realized Forecast Realized +/- YoY +/- vs.FCT Orig Forecast ratio Personal expenses 16,251 17,371 16,904 652 104.0% - 467 97.3% 23,215 72.8% Shipping costs 3,520 3,889 3,673 152 104.3% - 216 94.4% 5
Slide 28: Consolidated: Balance Sheet
Consolidated: Balance Sheet （Unit：million JPY） End of End of Final comparison End of VS 23 3Q FY23 3Q FY24 +/- FY23 +/- Current Cash & deposits 18,969 20,790 1,820 17,505 3,284 assets Trade receivable 30,124 28,869 - 1,254 25,639 3,229 Inventories 30,077 28,699 - 1,377 28,266 432 Others 2,721 2,780
Slide 29: 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 30: 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. FY23.3Q FY24.3Q FY24.3Q FY23.3Q FY24.3Q FY24.3Q FY23.3Q FY24.3Q FY24.3Q FY23.3Q FY24.3Q FY24.3Q Realized Forecast Realized Realized Forecast Realize
Slide 31: Operating Income Change Factors (YoY)
Operating Income Change Factors (YoY) (Unit: 0.1 billion JPY) 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 Insecticides and repellents. Decrease factors （▲30.1） Increase f
Slide 32: Overseas Results
Overseas Results (Unit: 0.1 billion JPY) Overseas sales (Includes cross-border EC) Overseas OI (Simple sum) 160 Exports / Cross-border EC 20 Operating 146.7 Income China Operating 12.0% 140 Philippines 131.0 Income Margin Malaysia 28.7 120.0 17.6 120 Vietnam 15 9.9% 27.2 Thailand 22.6 16.9 100 96.8
Slide 33: Consolidated: Balance Sheet
Consolidated: Balance Sheet (Unit: 0.1 billion JPY) ① Inventories (-1.37 B JPY): Benefits from inventory optimization starting in 2H LFY. ② Borrowings (-4.48 B JPY): Inventory optimization led to lower cash requirements. 2023.3Q 2024.3Q Change 総資産 1,402.3 1,414.9 ＋12.5 Cash & deposits 189.6 207.9 ＋1
Slide 34: 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 35: Forward-looking statements disclaimer
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