Message from the President

We would like to express our sincere gratitude for your continued support.
In recent years, we have seen a variety of short- and long-term changes, including rapid climate change. In particular, I believe that global warming has accelerated in recent years, and that the ecosystem is changing significantly. The spread of COVID-19 starting in 2020 also greatly altered our lifestyles and behavioral patterns. In today’s world where major changes occur every few years, society has come to demand that companies address these developments in various respects, which we interpret as the perfect opportunity for growth.
We are implementing our new Mid-Term Business plan, titled ‘Act For SMILE COMPASS 2026’, from 2024. The previous Mid-Term Business Plan covered a three-year period from 2021. Since the business will continue regardless of these periods, we assume that some issues would remain in a Mid-Term Business Plan that is divided into fixed periods. The real problem, as we see it, are those remaining items that were planned but never initiated. The three years covered by the previous Mid-term Business Plan experienced the unexpected emergence of COVID-19, and therefore failed to progress entirely as we had initially expected. However, we will for example roll over our targets for the overseas strategies that we failed to achieve due to the impacts of the COVID-19 pandemic, and retain them as focused policies in the new Mid-term Business Plan, titled Act For SMILE COMPASS 2026, with a target of fiscal 2026. The reason we will maintain our original policy is because we recognize that the direction in which we are heading is right for us. The challenge, however, is dealing with a medium-term timeframe of three to five years amid a significantly changing environment. Just looking at the past few years, the environment encompassing our business has experienced a succession of major developments, including COVID-19, the conflict in Ukraine, skyrocketing material costs, and foreign currency exchange rate fluctuations. Under these conditions, as part of the previous Mid-term Business Plan, we ascertained our earnings structure in more detail by introducing management accounting, as well as updated mission-critical systems, thereby building the foundation on which fundamental transformation can stand.
The new Mid-Term Business Plan aims to ‘work to further accelerate growth in the overseas business, which has high growth potential’, ‘nurture household products as a second revenue pillar while enhancing brand recognition’, and ‘enhance overall Group governance and aim to execute restructuring toward the generation of synergies’. In addition, we will create a structure for the Earth Group based on three key policies: ‘expand sales overseas’, ‘transform the earnings structure’, and ‘enhance Group management’. With an eye on further growth, the new Mid-Term Business Plan will be positioned as a three-year period of preparation for moving from individual optimisation to group-wide optimisation, and we will grow into a stronger Earth Group by mobilising the full strength of the group.
The Company celebrated its 100th anniversary in 2025. We would like to express our sincere gratitude for the support we have received from our many stakeholders, which has made this milestone possible. The Earth Group will continue to move forward to the next stage, aiming for sustainable growth and increased corporate value, and we ask for your continued support.
Katsunori Kawabata
Representative Director, President & CEO
Earth Corporation
April 2025