Slide 1: Earnings briefing materials for 1Q of the fiscal year ending December 2023
Earnings briefing materials for 1Q of the fiscal year ending December 2023 05/11/2023
Slide 2: Executive Summary
Executive Summary • 23.1Q Results ‣ Sales : 40.8 billion yen; vs. the forecast: 101.3% (+0.51billion yen) ‣ Gross profit : 17.7 billion yen; vs. the forecast: 99.9% (-0.01 billion yen) ‣ Operating income: 5.5 billion yen; vs. the forecast: 122.9% (+1.03 billion yen) ‣ Strong initial response to inse
Slide 3: Topic: Acquisition of BARTH business
Topic: Acquisition of BARTH business Closing is completed on March 1, 2023, and the "BARTH" brand is transferred. 10 months of results from March to December contribute to 2023 Amortization of goodwill and goodwill is tentative and will be determined after the PPA is implemented. Details of BA
Slide 4: Financial Result Highlights of FY 12/2023.1Q
Financial Result Highlights of FY 12/2023.1Q
Slide 5: Financial Highlights
Financial Highlights Increased sales and profit, steady progress against plan Strong initial response to insecticides & repellents; impact of volume decline due to price pass-through is minimal so far (Unit: 0.1 billion JPY) Vs. Realized YoY* Topics Forecast • Strong initial response to insectic
Slide 6: Progress of Operating Income (Quarterly and Cumulative)
Progress of Operating Income (Quarterly and Cumulative) (Unit: 0.1 billion JPY) Assumption is that the impact of raw material price hikes will be unevenly distributed in the first half of the year, with a moderate impact in the second half and beyond. Steady start to Q1, achieving profit plan Q1
Slide 7: Operating Income Change Factors (YoY)
Operating Income Change Factors (YoY) Impact of raw material price hikes covered by price revision measures Despite changes in the sales mix and an increase in necessary expenses, the Company secured an increase in income through sales increase and price revision measures. (Unit: 0.1 billion JPY
Slide 8: Operating Income Change Factors (vs. Forecast)
Operating Income Change Factors (vs. Forcast) Impact of raw material price hikes and effects of price revision measures were generally in line with expectations. However, the effects of price revision measures will depend on actual consumption in 2Q and beyond Costs progressed within plan (Unit:
Slide 9: Sales by Segment
Sales by Segment *To outside customers (excludes internal eliminations) Insecticides & repellents; Initial response has been strong, and the impact of volume decline due to price pass-through is limited at this point. Bath salts; Sales were lower than the previous year, dragged down by the slugg
Slide 10: Status Of The Insecticides & Repellents Segment (Domestic)
Status Of The Insecticides & Repellents Segment (Domestic) *For external customers (excluding internal offsets) Market situation at the end of Mar, our market share Sales increase/decrease factors (compared to plan) [Market size (YoY)] [Earth Corp.] New product contribution ▲ 2.2 113.9% 59.3% +0.8pt
Slide 11: Status Of The Bath Salts Segment (Domestic)
Status Of The Bath Salts Segment (Domestic) *For external customers (excluding internal offsets) Market situation at the end of Mar, our market share Trends in Core Products [Market size (YoY)] [Earth Corp.] • KIKIYU 90.1% 45.8% -2.5pt Vs. forecast 97% The surge in demand associated with the Coron
Slide 12: COGS – Status Overview
COGS – Status Overview Impact of raw materials whose prices increased during FY2022 will become apparent in this fiscal year The impact as of 1Q was 970 million yen against the annual impact of 2.5 billion yen, However, the impact was assumed from the outset to be unevenly distributed over the f
Slide 13: SG&A Expenses
SG&A Expenses Overall within budget, despite some periodic delays in advertising and R&D expenses. (Unit: 0.1 billion JPY) 1Q FY12/22 1Q FY12/23 1Q FY12/23 Realized Forecast Realized vs.Forecast Point Personal expenses 49.8 52.8 52.0 ▲ 0.7 Shipping costs 9.5 10.6 10.1 ▲ 0.5 Soaring logistics costs
Slide 14: Overseas Results
Overseas Results Steady growth mainly in Thailand (113% yoy) and Vietnam (122% yoy) Contribution from sales of a local subsidiary in the Philippines, which was consolidated from the 3Q of the previous fiscal year Although the impact of raw material price hikes has subsided, profitability decli
Slide 15: FY 12/2023 Forecast Highlights
FY 12/2023 Forecast Highlights No revision since the last announcement Generally progressing well, no change from the plan announced in February 2023 (Unit: 0.1 billion JPY) FY 2023 FY 2022 Sales (Forecast) Topics (Results) • Sales volume increase; launch of products with higher price Gross points
Slide 16: Shareholder Returns
Shareholder Returns 【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% Dividend-related KPIs Ordinary Dividend Per Share - Tren
Slide 17: Supplementary Materials; FY12/2023 1Q Results
Supplementary Materials; FY12/2023 1Q Results
Slide 18: Consolidated: Statement of Income
Consolidated: Statement of Income （Unit：million JPY） 1Q FY12/22 1Q FY12/23 1Q FY12/23 FY12/23 Realized Forecast Realized YoY vs.FCT Forecast YoY Sales 38,603 40,300 40,819 105.7% 101.3% 160,000 25.5% Cost of sales 21,236 22,532 23,067 108.6% 102.4% 93,500 24.7% Gross profit 17,367 17,767 17,752 102.
Slide 19: Consolidated: Sales by Segment
Consolidated: Sales by Segment （Unit：million JPY） 1Q FY12/22 1Q FY12/23 1Q FY12/23 FY12/23 Realized Forecast Realized YoY vs.FCT Forecast Progress rate Insecticides & Repellents 17,684 18,298 19,503 110.3% 106.6% 61,713 31.6% Oral hygene products 1,769 1,897 1,867 105.5% 98.4% 8,442 22.1% Bath salts
Slide 20: Operating Income Change Factors (YoY)
Operating Income Change Factors (YoY) （Unit：million JPY） 5,323 FY12/22.1Q (Realized) ＜Breakdown＞ Increase in gross • Effect of revenue increase (excluding the +416 profit effect of price pass-through) + 385 • Price shifting effect +1,339 • Impact from changes in the sales -399 composition ratio • Im
Slide 21: Operating Income Change Factors (vs. Forecast)
Operating Income Change Factors (vs. Forecast) （Unit：million JPY） 4,500 FY12/23.1Q (Forecast) ＜Breakdown＞ Downward swing in • Sales plan achieved (excluding the impact +280 gross profit of price pass-through) - 15 • Price shift effect -7 • Impact from changes in the sales -288 composition ratio • Im
Slide 22: Consolidated: SG&A Expenses
Consolidated: SG&A Expenses （Unit：million JPY） 1Q FY12/22 1Q FY12/23 1Q FY12/23 FY12/23 Realized Forecast Realized YoY vs.FCT Forecast Progress rate Personal expenses 4,987 5,285 5,205 104.4% 98.5% 21,795 23.9% Shipping costs 957 1,068 1,018 106.4% 95.3% 4,821 21.1% Strage costs 599 680 687 114.7% 1
Slide 23: Consolidated: Balance Sheet
Consolidated: Balance Sheet （Unit：million JPY） End of End of Final comparison End of vs.FY22 Q1 2021 2022 +/- 2021 +/- Current Cash & deposits 14,772 15,765 992 21,027 ▲ 456 assets Trade receivable 24,163 34,986 10,823 22,941 1,538 Inventories 32,253 38,781 6,527 27,502 4,932 Others 2,772 3,158 385
Slide 24: Consolidated: Capital expenditure, Depreciation expenses
Consolidated: Capital expenditure, Depreciation expenses （Unit：million JPY） FY2019 FY2022 FY2021 FY2022 FY2023 FY2019 FY2020 FY2021 FY2022 FY2023 Realized Realized Realized Realized Forecast Realized Realized Realized Realized Forecast Depreciation CAPEX 1,953 3,548 2,928 5,878 7,100 3,334 3,334 3,5
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. FY22.1Q FY23.1Q FY23.1Q FY23.1Q FY23.1Q FY22.4Q FY22.1Q FY23.1Q FY23.1Q FY22.1Q FY23.1Q FY23.1Q Realized Forecast Realized Realized Forecast Realize
Slide 26: 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