Earth Corporation · TSE:4985
Earth — Q2 2026 Earnings Presentation
50 slides from Earth's earnings presentation, Aug 6, 2026
Slide 1: Earnings Briefing Materials for 2Q of the Fiscal Year Ending December 2026
Earnings Briefing Materials for 2Q of the Fiscal Year Ending December 2026 August 6, 2026
Slide 2: Executive Summary
Executive Summary Sales: ¥109.0 B (vs. forecast: +0.1%; +¥50 M) Operating Income: ¥13.2 B (vs. forecast: +7.9%; +¥960 M) • Sales: • Domestic Insecticides & Repellents: Both shipments and sell-through remained strong, driven primarily by new products. • Domestic Homecare Products: FY26 2Q While bath
Slide 3: Impact of the situation in the Middle East
Impact of the situation in the Middle East Costs for raw materials, packaging materials, and other items have risen. We project an operating income headwind of ¥1 billion for the current fiscal year. However, we fully expect to offset this through price adjustments and other measures. Estimated
Slide 4: 2Q FY2026 Results Overview
CN. . teZ2 Earth Corporation EARTH Act For Life 2Q FY2026 Results Overview
Slide 5: Medium-to-long-term Concept
Earth Group’s Medium-to-long-term Our Group Working Together Toward Concept a Bright Tomorrow for EARTH Next MTBP Transform the earnings structure & build a framework Drive sales: Overseas Drive revenue: Domestic Expand Profit Generate Foundation in Cost Enhance global expansion Asia Synergies Grow
Slide 6: Business Portfolio Targets
Business Portfolio Targets Leverage the 4 pillars of our operations in Japan, Overseas, the General Environment & Sanitation Business, and MA-T to grow profits. General Environment & Japan Overseas MA-T Sanitation Business Minimize seasonality effects Overseas business as a Develop a new business
Slide 7: Financial Result Highlights
Financial Result Highlights YoY: Despite revenue growth, operating income and net income declined due to a higher cost of sales ratio and increased SG&A. Vs. Plan: Sales met expectations, while disciplined SG&A spending drove an operating income beat. (Unit: 0.1 billion JPY) 25.2Q Results Amount
Slide 8: Progress vs. OI Target (Quarterly/Cumulative)
Progress vs. OI Target (Quarterly/Cumulative) (Unit: 0.1 billion JPY) Q2 sales met expectations, but gross profit fell short due to raw material inflation. Operating income increased due to selling, general, and administrative expenses remaining within budget. Progress is on track relative to th
Slide 9: Management Accounting Basis: Sales/GPM (25 vs. 26)
Management Accounting Basis: Sales/GPM (25 vs. 26) Domestic - Insecticides & Repellents: Strong market trends and solid shipments of new products drove revenue growth. Domestic - Homecare Products: Oral hygiene products and air fresheners performed well, though bath salts faced some headwinds.
Slide 10: Domestic: Insecticides & Repellents Status Update
Domestic: Insecticides & Repellents Status Update The domestic Insecticides & Repellents market grew by 3.0% YoY. As of the end of June, we were tracking at 49.9% of the annual target. Led by our new product OH! No-mat, both shipments and sell-through remained strong. Market landscape & Earth’s
Slide 11: Domestic: Homecare Products Status Update (Oral Hygiene)
Domestic: Homecare Products Status Update (Oral Hygiene) Market share ticked up to 18.8%, outpacing the broader market’s 5.9% YoY growth. Retail sell-through for our “MONDAMIN” lineup, relaunched last fall, is performing strongly, up 10.2% YoY. Shipments rebounded, posting a 3.4% YoY gain. Mar
Slide 12: Domestic: Homecare Products Status Update (Bath Salts)
Domestic: Homecare Products Status Update (Bath Salts) Overall market up slightly YoY, despite mixed trends across product types. As Enjoy-type (i.e., experience-driven) formats gain market share, the share of traditional powder formats is declining. “ONPO”, “BARTH”, and Hakugen Earth’s variety
Slide 13: Overseas: Status Update (ASEAN Core)
In local-currency terms Overseas: Status Update (ASEAN Core) Sales FY26 2Q Status (0.1 B BAHT） Despite a significant market downturn YoY, we 15 maintained solid performance and delivered positive YoY growth. 12 In H2, we aim to hit our targets through the early retail rollout of new products and
Slide 14: Overseas: Status Update (Expansion in ASEAN)
In local-currency terms Overseas: Status Update (Expansion in ASEAN) Sales FY26 2Q Status (1 M MYR) Strong momentum across both Insecticides 15 & Repellents and Air Fresheners. Significantly outperformed YoY and vs. 12 the plan, driven by expanded inline SKU listings at multiple key accounts. Ma
Slide 15: Overseas: Status Update (China, Exports)
In local-currency terms Overseas: Status Update (China, Exports) Sales FY26 2Q Status (1 M RMB) Some key accounts fell short of targets. 120 We will continue to focus on expanding into emerging channels while monitoring our revenue balance. 80 The closure of the Suzhou plant is proceeding as C
Slide 16: General Environment & Sanitation – Status Update
General Environment & Sanitation – Status Update Rising demand for highly specialized, technology-driven hygiene services led to an increase in total contracts. The shift toward higher value-added services drove an increase in average contract value. General Environment & Sanitation - Trend in A
Slide 17: MA-T Business: Progress Update
MA-T® Business: Progress Update Awarded the Special Jury Award at the "Nikkei XTREND BtoB Marketing Awards 2026" (hosted by Nikkei BP) for the MA-T System®'s solution-driven marketing initiatives in the nursing care sector. Solution-Driven Marketing Initiatives Challenges Marketing Initiatives Map
Slide 18: Operating Income Change Factors (vs. Forecast)
Operating Income Change Factors (vs. Forecast) Factors weighing on profits include changes in the sales mix, a rise in the cost-to-sales ratio due to escalating tensions in the Middle East, and exchange rate fluctuations. Factors contributing to profit growth are primarily the reduction and non-
Slide 19: Synergies from the Bathclin Integration
Synergies from the Bathclin Integration The payment of one-time expenses related to the absorption-type merger with Bathclin has been largely completed. For 2026, we expect to generate cost synergies that will exceed the one-time expenses incurred. We aim to realize further synergies through t
Slide 20: 2026 - Forecast Highlights
2026 - Forecast Highlights The impact of the escalating tensions in the Middle East is expected to be offset by measures such as passing on price increases. We are maintaining our initial guidance and remain committed to achieving the full-year targets. (0.1 B JPY) 2026 Key Highlights 2025 Resul
Slide 21: H2 & Beyond: Strategic Initiatives
H2 & Beyond: Strategic Initiatives
Slide 22: Homecare Products
Homecare Products Transforming into a highly profitable, sustainable growth model driven by the dual engines of Premiumization and Market Share Expansion. Oral Hygiene Products Bath Salts High growth driven by the development of Through synergy creation in the Bathclin new customer segments and a sh
Slide 23: Oral Hygiene Products
Oral Hygiene Products Enhancing our “MONDAMIN Premium Care” lineup • Sales of the high-priced, high-margin “MONDAMIN Premium Care” line grew, strongly driving growth across the entire category. • By expanding the product lineup—including large-capacity pouches—the company prevented existing customer
Slide 24: Bathclin's Synergies from Integration
Bathclin's Synergies from Integration Mid- to Long-Term Goal: Capture a 50% Share of the Bath Additives Market Integration of Insights and Know-How Expanding global bath Through the Cross- Sales Dept. & wellness culture Fertilization of Talent productivity gains ( Japan/Overseas) Optimized realignme
Slide 25: Bath Salts
Bath Salts Creating Opportunities for Bath Salts and Strengthening the Brand Through the Bathclin Integration Leveraging Bathclin's expertise to create new value and opportunities for bathing ・We joined the “Industry-Government-Academia Consortium for Heatstroke Prevention”—which includes nine organ
Slide 26: Key Topic: Pricing Actions
Key Topic: Pricing Actions Raw material and packaging inflation is expected to create a roughly JPY 1 billion full-year headwind to profits. We expect to recover approx. ¥560 M in profit through price increases implemented in September, primarily within Homecare Products. Impact of Cost Inflatio
Slide 27: Key Topic: M&A in the General Environment & Sanitation business
Key Topic: M&A in the General Environment & Sanitation business Earth Environmental Service acquired 100% ownership of a Singapore-based entity, making it a wholly-owned subsidiary. Positioning Singapore as our ASEAN business hub to establish a foundation for expansion into Indonesia, the Philip
Slide 28: Our Vision
Our Vision Build a robust management foundation with multiple revenue streams Household Products business General Environment & Sanitation business Stable profits from Insecticides & Repellents Monetize Make this business ＋ MA-T a core revenue stream Raise profitability of homecare & gardening produ
Slide 29: APPENDIX.
APPENDIX. © Earth Corporation All Rights Reserved. 28
Slide 30: Sales Breakdown
Sales Breakdown Sales by Business Segment Overseas Sales General Environment & Household Products Sanitation Business 17.9 % 82.1 % Overseas 12.9 % Insecticides & Other Repellents 6.0％ Gardening 35.5 % Products 4.2％ Homecare products 36.5 % Domestic 87.1 % © Earth Corporation All Rights Reserved. *R
Slide 31: Business Segments & Key Products
Business Segments & Key Products Segment Key Products & Services Insecticides & Homecare Gardening Other Overseas Repellents Products Products (Pet Supplies & MA-T) Household Products Business Gross Profit Gross Profit Gross Profit Gross Profit Gross Profit Margin 51.7 % Margin 35.2 % Margin 23.0 %
Slide 32: Household Products Business - Market Size (Domestic)
Household Products Business - Market Size (Domestic) 2025 2025 Category Market size Earth’s share Trends (0.1 B JPY) Insecticides & Repellents - Market Size Earth's Market Share 1,500 60% Insecticides & ¥ 141.3 B 59.2 % 1,000 40% Repellents 500 20% （YoY +1.4%） （YoY +1.9pt） 0 0% 2021 2022 2023 2024 2
Slide 33: Household Products - Overseas
Household Products - Overseas Insecticides & Repellents Household Products ASEAN Core Expansion in ASEAN Key Products Sales mix Key Products Sales mix Insecticides & Homecare Thailand Repellents 75% Malaysia Products 62% Homecare Insecticides & Vietnam Products Philippines Repellents 76% 86% China /
Slide 34: General Environment & Sanitation
General Environment & Sanitation Sales Mix Total Annual Contracts Total Annual Contract Value ＴＨＣ ＰＣ ＢＭ Product Sales & Other THC PC BM （#） THC PC BM (0.1 B JPY) 1,434 61.0 1,442 1,423 1,454 57.9 1,453 7,301 53.2 6,543 6,783 50.9 52.9 6,417 5,869 34.9% 25.2 38.4% 21.4 22.4 17.9 20.0 131.9 2025 Sales
Slide 35: MA-T Business
MA-T Business Business Strategy: Establishing a new revenue base driven by our proprietary MA-T® technology (Leveraging foundational patents to secure mid-to-long-term revenue streams) Unlocking Diverse Applications Through Activity Modulation WEAK STRONG Removal of bacteria Disinfection of food Ste
Slide 36: MA-T Business Mechanism: On-Demand Activation System
MA-T Business Mechanism: On-Demand Activation System “On-Demand Aqueous Chlorite Ion Solution” As safe and simple to use as water, this system activates exclusively on demand to deliver maximum efficacy. ① Formulated with 99% water ② Aqueous radicals* activate on demand to eliminate bacteria, viruse
Slide 37: Update on the MA-T® Business
Update on the MA-T® Business Launched retail rollout for MA-T oral care products across the following drugstore chains: WELCIA YAKKYOKU CO.,LTD.: 200 stores in the Kansai region TSURUHA CO., LTD: 120 stores nationwide Tsuruha Store Welcia Store Products & Display Units Footprint Footprint ・MA-
Slide 38: [Reference] FX Rates & Sensitivity
[Reference] FX Rates & Sensitivity (Ref.) FY2025 FY2026 Full-Year Full-Year 2Q Results 2Q Results YoY vs. Forecast Results Forecast US 144.81 156.56 162.39 112% 150.00 108% （USD） China 20.19 22.36 23.87 118% 21.00 114% （CNY） Thailand 4.44 4.97 4.88 110% 4.50 108% （THB） Vietnam 0.00551 0.00596 0.0061
Slide 39: Supplementary Materials: FY2026 2Q Results
Supplementary Materials: FY2026 2Q Results
Slide 40: Consolidated: Statement of Income
Consolidated: Statement of Income （Unit：million JPY） FY25 FY26 FY26 VS YoY vs.FCT FY26 2Q Results 2Q Forecast 2Q Results +/- YoY +/- FCT Forecast YoY Sales 102,669 109,000 109,055 6,386 106.2% 55 100.1% 188,000 104.9% Cost of sales 57,521 61,200 61,823 4,301 107.5% 623 101.0% 109,100 104.5% Gross pr
Slide 41: Consolidated: Sales by Segment
Consolidated: Sales by Segment （Unit：million JPY） FY25 FY26 FY26 VS YoY vs.FCT FY26 2Q Results 2Q Forecast 2Q Results +/- YoY +/- FCT Forecast YoY Insecticides & Repellents 47,397 50,541 51,721 4,324 109.1% 1,180 102.3% 70,665 104.5% Oral hygene products 4,025 4,455 4,260 235 105.8% - 194 95.6% 9,46
Slide 42: Consolidated: SG&A Expenses
Consolidated: SG&A Expenses （Unit：million JPY） FY25 FY26 FY26 VS YoY vs.FCT FY26 Progress 2Q Results 2Q Forecast 2Q Results +/- YoY +/- FCT Forecast ratio Personal expenses 11,611 11,697 11,771 160 101.4% 74 100.6% 24,071 48.9% Shipping expenses 2,736 3,259 3,210 473 117.3% - 49 98.5% 6,320 50.8% St
Slide 43: Operating Income Change Factors (YoY)
Operating Income Change Factors (YoY) ◼ While revenue increased significantly, led by the Insecticides & Repellents, operating profit declined due to an increase in expenses such as advertising and distribution. (Unit: 0.1 B JPY) Decrease factors (-29.3) Increase factors (+26.0) Consolidation of PRO
Slide 44: Overview of Group Companies' Performance
Overview of Group Companies’ Performance （Unit：million JPY） Earth Corporation Hakugen Earth Co., Ltd. PROTOLEAF, Inc. 2Q FY25 2Q FY26 2Q FY26 2Q FY25 2Q FY26 2Q FY26 2Q FY25 2Q FY26 2Q FY26 Results Forecast Results Results Forecast Results Results Forecast Results Sales 64,585 66,404 66,401 9,445 9,
Slide 45: Overseas Results
Overseas Results (FY22-26 2Q Cumulative total results) (Unit: 0.1 billion JPY) Overseas sales For external customers only (excluding internal offsets) Overseas OI (Simple sum) © Earth Corporation All Rights Reserved. supplement 6
Slide 46: Consolidated: Statement of Cash Flows
Consolidated: Statement of Cash Flows （Unit：million JPY） End of End of VS YoY End of 2Q FY25 2Q FY26 +/- FY25 Cash flows from operating activities 3,272 - 531 - 3,803 10,795 Cash flows from investing activities - 974 - 3,045 - 2,070 - 3,759 Cash flows from financing activities - 882 915 1,797 - 1,01
Slide 47: Consolidated: Balance Sheet
Consolidated: Balance Sheet （Unit：million JPY） End of End of VS YoY End of 2Q FY25 2Q FY26 +/- FY25 +/- Current Cash & deposits 18,203 20,542 2,338 23,327 - 2,785 assets Trade receivable 42,823 46,095 3,271 25,941 20,153 Inventories 31,280 31,400 119 32,305 - 904 Others 2,656 3,680 1,024 2,764 916 N
Slide 48: Consolidated: Capital expenditure, Depreciation expenses
Consolidated: Capital expenditure, Depreciation expenses （Unit：million JPY） FY22 FY23 FY24 FY25 FY26 FY22 FY23 FY24 FY25 FY26 Results Results Results Results Forecast Results Results Results Results Forecast CAPEX 5,883 6,473 4,376 4,374 6,536 Depreciation 3,852 4,118 4,424 4,578 4,646 © Earth Corpo
Slide 49: Shareholder Returns
Shareholder Returns Shareholder returns policy ◼ Maintain a foundation of consistent, stable dividends for shareholders while flexibly evaluating dividend increases and share buybacks reflecting earnings performance and retained earnings. ◼ Guiding for an annual dividend of ¥130/share in 2026, a YoY
Slide 50: 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