In recent years, the business environment has been changing daily, and our Group is facing a variety of challenges, including soaring raw material prices, sharp fluctuations in exchange rates, and the acceleration of climate change. However, we view these very changes as a prime opportunity to propel our company to the next stage of growth.

Under our current mid-term business plan, “Act For SMILE COMPASS 2026,” which runs through 2026, we have been driving structural reforms with the goal of shifting from “individual optimization” to “group-wide optimization.” As a major result of these efforts, in fiscal year 2025—a milestone year marking our 100th anniversary—we achieved both increased revenue and profits. This success was driven by the fundamental renewal of our flagship brand, “Mondamin,” and aggressive advertising investments, as well as the expansion of high-value-added products in Insecticides & Repellents category. Consequently, we reached the profit targets of our current medium-term business plan one year ahead of schedule. This achievement proves that our strategic direction is correct and provides us with a firm sense of confidence for our next phase of growth.

Fiscal year 2026, our final year of the plan, will be a crucial year for further accelerating this growth and building a foundation for the future. Having achieved the targets of our mid-term business plan ahead of schedule, our next priorities are to expand our market share in the domestic homecare products—as a second pillar of revenue following Insecticides & Repellents category —and to achieve dramatic growth in our overseas business. In Japan, we completed the absorption merger of BATHCLIN Corporation, a wholly owned subsidiary, effective January 1, 2026. Through this integration, we will combine the technical capabilities and expertise cultivated by both companies over many years and create synergies across all phases—from research and development to production and logistics—to strive toward our goal of capturing a 50% market share in the bath salts market.

At the same time, in our overseas business —a key driver of growth—we will seek to expand our market share, particularly in ASEAN, and advance product development tailored to local needs. By doing so, we will enhance our presence in the global market and achieve sustainable growth through a dual-track approach of domestic and overseas business. We will evolve from our earnings structure, which centers on domestic Insecticides & Repellents category into a structure supported by multiple pillars, including domestic homecare products, overseas business, the General Environment and Sanitation business, and the MA-T business.

The Earth Group will not stop moving forward as we look toward the next 100 years. While keeping our core belief that “Diversity”—a principle that must never change—at the foundation of our business, we will remain a group that continues to take on new challenges without being bound by past successes. Guided by our management philosophy of “We act to live in harmony with the Earth.” we will continue to support the lives of more people around the world and strive to enhance our corporate value as a “shining company” that is essential to society. We sincerely ask for the continued support of our shareholders and investors.

Katsunori Kawabata
Representative Director, President & CEO
Earth Corporation
April 2026