Earth Corporation

Medium-Term Management Plan

Earth Corporation published “Act For SMILE-COMPASS 2023-,” a new 3-year medium-term business plan marking the fiscal year ending December 2023 as the final year, with the goal of continuously increasing corporate value. In keeping with this plan, we will strive to evolve global management and Group management, promoting structural reforms to enable a more flexible and robust structure that can respond even to unexpected situations.


Carrying over strategies of “expanding overseas rollout” and “maximizing Group synergy” from the previous medium-term plan, we continue to make aggressive investments, narrowing down the target fields to “Asia” and “cost synergy” in each of those two strategic areas. In the new medium-term plan, we also incorporated a new strategy of “ESG and open innovations,” taking on the challenge of rapidly resolving social issues by promoting open innovations with industry, government, and academia and combining Earth’s strengths with those of other companies, to resolve social issues not only in Japan but throughout the rest of Asia as well.

KPI's KGI's , Operating process , Operating system

Based on responses to new evaluation indexes (standards) such as capital costs and non-financial KPIs, we will fundamentally innovate various in-house systems and regulations, as well as business infrastructures such as operational processes and systems. Furthermore, by making IT investments on an unprecedented scale, we will actively incorporate evolving digital technologies, and rebuild business infrastructures and new systems with a view toward the future.

Expand revenue base in Asia

In key Asian countries such as Thailand, Vietnam, China, in addition to expanding the company’s share in the insecticide market, we will accelerate growth by enhancing the product lineup for mouthwash, deodorizers, and air fresheners, and at the same time further expand the scope of Asian countries being targeted, with the goal of achieving overseas sales of 16 billion yen in 2023.

  • Increase market share in each country by developing and introducing products in keeping with local needs
  • Further improve earnings structures, to make overseas rollout a driver of earnings growth
  • Consider M&As as one means of expanding rollout

Generate group synergies

To further solidify the domestic business base, which is the core market for the Earth Group, have Group companies further strengthen collaborations with all entities in the value chain, including marketing, research, procurement, production, logistics, sales, and systems, and accelerate the creation of synergies.

ESG-driven open innovation

Incorporate environmental, social, and governance (ESG) perspectives into all business fields, actively promote open innovations, and continuously improve corporate value by taking on the challenge of resolving issues to achieve a sustainable society.


  • Reduce product returns and losses from waste
  • Search for sustainable materials


  • Participate in WELCO Lab*
  • Strive to be a good health management company that promotes workstyle reforms

*An initiative by Japanese companies aiming to resolve issues in the field of global health.
Established in October 2020 with support from the Bill & Melinda Gates Foundation.


  • Promoting diversity
  • Build Group governance structures that crate synergies

Initiatives targeting open innovations

Promote collaborations among industry, government, and academia aimed at the broad rollout of the “MA-T System®**,” an oxidation control technology expected to enable innovative solutions.

**MA-T (Matching Transformation System®): an innovative oxidization control technology. It produces active components (aqueous radicals) in the required volumes when they are needed from chlorite ions, enabling the inactivation of viruses and disinfection of various types of bacteria. It also effectively controls the level of activation, and so can be used in a broad range of applications, including agriculture, pharmaceuticals, and cosmetics.

Financial Policy

We will strive to increase earning power and create stable free cash flow. The cash generated will be distributed with an effective balance between returns to shareholders and investments required for continuous growth.

Use of fundsExpected timing of procurementExpected investment amountsInvestments
Investment to expand earnings base in Asia ¥ 5.5 billion ¥ 7.0 billion
  • Product development and marketing investments
  • Funds reserved for future M&As
Investments in ESG and innovations ¥ 3.0 billion ¥ 6.0 billion
  • MA-T related(Raw material procurement and capex)
Investment in ICT infrastructure digital transformation (DX) ¥ 1.5 billion ¥ 4.0 billion
  • Refurbishing backbone systems
  • Promoting digital asset management
New capital investment
(excluding maintenance capex)
- ¥ 3.0 billion
  • Expanding facilities in core categories
Repayment of outstanding debt ¥ 4.5 billion -  


Earth Corporation has been promoting corporate governance reforms since 2015, and the company’s governance has steadily evolved. We will continue to promote these initiatives to further increase corporate value.

Past governance improvement initiatives

2015 Governance reforms begin
2016 Introduction of “two outside director” structure
2017 Board of Directors effectiveness evaluations begin
2018 Number of directors set at 10; directors’ term reduced to one year
Executive officer system introduced to increase management speed
Restricted stock compensation plan introduced
Selloff of strategically-held shares ➡ Reduction in cross-shareholdings
2019 Diversity in the Board of Directors (nationality and gender)
2020 Share fluidity increased through equity initiatives
2021 Created “Individual compensation decision policy for directors”
Corporate Governance Promotion Committee established
Sustainability Promotion Committee established
Directors’ skill matrix created
Basic Sustainability Policy created
Material issues identified

Quantitative Targets and KPIs

Profitability Marginal operating income = gross profit – (sales promotion expenses + logistics expenses) Evaluate earnings from sales activities
Contribution margin = operating income + staff division expenses Evaluate earnings of businesses and categories
Capital efficiency Capital costs Make judgement on the implementation of investment projects
 2020 (Realized)2023 (Forecast)Change
Sales ¥ 196.0 billion ¥ 213.0 billion + 17.0 billion
Operating Income ¥ 11.4 billion ¥ 14.0 – 16.0 billion + 2.6 – 4.6 billion
Net Income attributable to owners of parent ¥ 3.54 billion ¥ 10.0 billion + 6.45 billion
ROE 7.4% 13.0% over + 5.6pt over
DOE 5.1% 4.0% over  

*Sales figures converted from the previous accounting standard, following the adoption of ASBJ Statement No. 29 Accounting Standard for Revenue Recognition

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