Financial Results for
the Second Quarter of
the Fiscal Year Ending
March 31, 2024
May 23, 2024

T. HASEGAWA CO., LTD.

Contents

I.

Business Overview

II.

Overview of Financial Statements

III. Business Environment
IV. Management Policy
V.

Global Strategy

VI. Capital PolicyVII. Basic Policy on IR Activities
VIII. Accompanying Materials
1

I. Business Overview

2

Flavor and Fragrance Business
Products

Ingredients(Compounded Flavors and Fragrances)

Natural aromatics

Flavors

調合Compounding

Synthesizedaroma chemicals

FormulasFragrances

Integration of research anddevelopment capabilities

Flavorists : Experts who formulate flavors
Perfumers : Experts who formulate fragrances
Flavors and fragrances are in accordance with customer requests⇒ Formulas created by flavorists and perfumers based on experience areinvaluable assets for flavor and fragrance companies
3

Ⅱ．Overview of
Financial Statements

4Market Environment

Trends by Category (Domestic Market)

・2nd Quarter, FYE September 2024 (October 2023 to March 2024)
Category

Beverages

SavorysnacksIncrease• Sales increased after a full round of simultaneous price increases for smallsized drinks (starting from Oct 2022), lingering summer heat and recoveryof outing occasions of consumers• Green tea, vegetable beverages and hot products such as canned coffee
were unfavorable, while mineral water and barley tea performed strongly• Private brands of tea beverages, carbonated water, etc. grew on the back ofprice inflations

Increase• Discount sales of Potato Chips and Shoestrings Fries declined due to a seriesof two price increases. There was a shift from national brands to lessexpensive private brands. Stacked potato chips struggled, while sales forshoestring products grew
• Continuing on from last year, the frequency of discount sales of Wheat Flour
Products and Corn Snacks increased due to comparatively cheaper prices• Sales of Bean Snacks grew due to new products released in small pouches

Increase• Sales of chocolate bars and high-cacao dark chocolate products were up
despite a series of two price increases• Products using nuts had less discount sales due to raw material hikes of bothalmonds and macadamias, resulting in a year-on-year decline. Low supply ofmacadamias is likely to continue.
• Sales of chocolate snacks grew due to increase in people going outdoors andmore purchases for pocket-sized snack products. In particular, long-selling
products performed strongly

Increase• Sales increased on the back of price increases. Successful at creating highmarket retention despite price increases• Sound sales from last year continued

Increase• Amid a series of price increases in food products, instant noodle prices wereperceived as reasonable compared to other categories, resulting in strongsales• Cost-saving consumer behaviors led to higher demand for low-priceproducts, standard brand products’ sales were weak

Sweet
and
savorysnacks
Chocolate

Frozen Desserts

Instant Noodles

Impact on
performance

Trend

Source: Nikkan Keizai Tsushin: Positive direction: Negative direction

5Summary of Consolidated Performance• Net sales Increased Yr/Yr
Progress rate against full-year target was 50.3% (average progress rate: 47.7%)• Operating profit Increased Yr/Yr
Progress rate against full-year target was 51.8% (average progress rate: 46.1)•⇒ In addition to the increases in local currency-based sales and profits,
the exchange rate had a favorable impact
FY23 2Q

FY24 2Q

ActualActualChangeProgress vs

Yr/Yr

Annual Plan

Amount％（Million yen）
Averageprogress rate

Differences％

Net Sales

31,31333,453

2,139

6.8%

50.3%

47.7%

2.6%

Cost of Sales

18,885

19,617

732

3.9%

50.2%

47.6%

2.6%

Gross Profit

12,428

13,835

1,407

11.3%

50.4%

47.8%

2.7%

SG&A Expenses

8,842

9,540

697

7.9%

49.9%

48.3%

1.5%

Operating Profit

3,585

4,295

710

19.8%

51.8%

46.1%

5.6%

Ordinary Profit

3,728

4,555

826

22.2%

51.8%

45.8%

6.0%

Profit before
Income Taxes

3,947

4,532

584

14.8%

47.9%

44.7%

3.2%

Net Profit

2,824

3,198

374

13.2%

47.4%

43.1%

4.3%

EBITDA *

5,822

6,715

892

15.3%

51.3%

* The average progress rate is the average progress rate for the past 10 fiscal years (excluding the maximum and minimum values)* Net Profit refers to profit attributable to owners of parent* EBITDA = Operating Profit + Depreciation (including amortization of customer-related assets) + Amortization of goodwill
EBITDA to Net Sales (%) : 20.1%

6

Net Sales by Segment
・ Sales growth factors

Sales increased in U.S. subsidiary, T.Hasegawa on a non-consolidated basis,
and Chinese subsidiaries(Million yen)

Yr/Yr

FY23 2Q

FY24 2Q

ActualActualAmount%27,131

29,526

2,395

8.8%

Fragrances

4,182

3,926

-255

-6.1%

Total

31,31333,4532,139

6.8% －

Segment
Flavors

RemarkHigher sales of U.S. subsidiaries , T. Hasegawa (nonconsolidated), and Chinese subsidiaries
Company sales on a non-consolidated basis andChinese subsidiaries declined

FY24 2Q ActualOverseas net sales asa percentage of consolidated
net salesFYE September 30, 2024, 2Q
48.4%(FYE September 30, 2023: 46.5%)

7

Net Sales by Group Company• Sales growth factors
Higher sales of U.S. subsidiary, T. Hasegawa(non-consolidated), and Chinese subsidiaries
FY23 2Q

FY24 2Q

ActualActualJapan

19,243U.S.

(Million Yen)
Yr/Yr

575

3.0%

6,121

7,205

1,084

17.7%

China

5,087

5,461

374

7.4%

Malaysia

791

933

141

17.9%

Others

1,784

2,131

346

19.4%

Adjustment-1,715-2,098-382-

Consolidated

31,31333,453

2,139

6.8%

Due toforex rates(Million Yen)others

FY2023 2Q

FY2024 2Q

Yr/Yr

1US$

¥136.96¥148.25

Yen down 8.2%

1RMB

¥19.61¥20.54

Yen down 4.7%

1MYR

¥30.60¥31.48

Yen down 2.9%(Million Yen)

35,000%19,819• Effect of exchange rate

Currency

+374

+141

+346 -382+1,084+575
33,45331,31327,000
0

Amount ofchange

Japan

114

461

575

U.S.

549

536

1,084

China

247

127

374

Malaysia

26

115

141

Others

105

241

346

Adjustment

-94

-288

-382

Consolidated

947

1,192

2,139

Japan

Sales in the flavor segment increased
mainly due to beverages

Sales
Increase

Sales were up mainly due to the reaction to
U.S.

the previous term in which customers tried
to reduce orders due to an uncertain

Sales
Increasebusiness outlook
China
Malaysia

Sales in the flavor segment increased
mainly due to beverages

Sales
Increase

Sales were up mainly due to sales toSoutheast Asia (Indonesia, etc.)

Sales
Increase

8

Operating Profit by Group Company
・ Profit growth factors
Higher operating profit at U.S. subsidiary
and Chinese subsidiaries

Currency

FY2023 2Q

FY2024 2Q

Yr/Yr

1US$

¥136.96¥148.25

Yen down 8.2%

1RMB

¥19.61¥20.54

Yen down 4.7%

1MYR

¥30.60¥31.48

Yen down 2.9%(Million Yen)
FY23 2Q

FY24 2Q

ActualActual

Japan

2,379

U.S.

Yr/Yr

百万円

%

2,432

52

2.2%

-197

68

266

-

China

1,219

1,482

262

21.6%

Malaysia

102

171

69

67.5%

Others

91

171

79

86.3%

Adjustment

-10

-30

-20

-

Consolidated

3,585

4,295

710

19.8%

+69
+52

+266

+79

-20

+262

4,295
3,585

0

• Effect of exchange rate
Due toforex rates(Million Yen)

Amount ofotherschange

Japan

58

-5

52

U.S.

5

261

266

China

67

195

262

Malaysia

5

64

69

Others11

68

79

Adjustment

46

-66

-20

Consolidated

192

517

710

Japan

SG&A expenses rose due to an increase inpersonnel expenses, but there were
contributions from sales increases and an
improvement in the cost of sales ratio with achanged product mix

ProfitIncrease

U.S.

Sales increased, with an improvement in thecost of sales ratio with a changed product mix
and SG&A expense ratio

ProfitIncrease

China
Malaysia

Sales increased, with an improvement in thecost of sales ratio with a changed product mix

ProfitIncrease

Sales increased, with an improvement in thecost of sales ratio and SG&A expense ratio

ProfitIncrease

9

Analysis of changes in operating profit
・Year-on-year increase in operating profit was achieved due to increased sales inflavor segment and favorable impact from the depreciation of the yen.
・Raw materials prices remain high, and the increase in the cost of sales ratio is moderatecompared to the same term of the previous year.
・SG&A expenses rose due to an increase in personnel expenses.

(Million Yen)
ProfitIncrease

・Sales in the flavor
segment increased

FY23 2Q
Operating Profit

Net Sales
growth factors

・Personnel
expenses rose

Cost of sales
Factors affecting
deterioration factors SG&A expenses

ProfitDecrease

・Depreciationof the yen

Effect ofexchange rate

FY24 2Q
Operating Profit
10

Ⅲ．Business Environment11

Size of Global Flavors and Fragrances Market (Estimated by the Company)• Worldwide flavors and fragrances sales: Approx. 32.5 billion U.S. dollars (approx. 4.5 trillion yen)
Europe, Africa, Middle East

‐ Market size: Approx. 11.6 billion U.S. dollars(approx. 1,620 billion yen)*‐ Many users have introduced a preferredsupplier system, and major flavor andfragrance companies in Europe and the U.S.
have established foundations

North America‐ Market size: Approx. 8.1 billion U.S. dollars (approx. 1,120 billion yen)*‐ Many users have introduced a preferred supplier system, and major flavor andfragrance companies in Europe and the U.S. have established foundations‐ The Company established a U.S. subsidiary in California in 1978
‐ 2017: Acquired FLAVOR INGREDIENT HOLDINGS, LLC It manufactures andsells food and beverage flavors, mainly in the health sector‐ 2020: Acquired MISSION FLAVORS & FRAGRANCES, INC. It manufacturesand sells flavors with strength in sweet flavors used in dairy products, ice cream,
etc.

Asia

‐ Market size: Approx. 9.6 billion U.S. dollars (approx. 1,350
billion yen)*‐ Market expansion due to economic growth in China and otheremerging markets‐ Major global flavor and fragrance companies are entering China‐ The Company established subsidiaries in Shanghai (2000),
Suzhou (2006), Thailand (2003), Indonesia (2014), and Taiwan(2017)‐ Secured a manufacturing site in Malaysia through M&A (2014)* The Company’s estimates for market size by region* Forex rate: 1 U.S. dollar = 139.5 yen (2023)● = the Company’s base

South America‐ Market size: Approx. 3.3 billion U.S.
dollars (approx. 430 billion yen)*‐ Mainly imports from North America,
Mexico, etc.
‐ Competition intensifying in the Brazilian
market owing to economic growth12Global Flavors and Fragrances Market (Estimated by the Company)• Global flavors and fragrances market in 2023: Grew approx. 3% Yr/Yr
Global Flavors and Fragrances Market (Estimated by the Company)(Million US$)

40,000CAGR

30,000South America

5.1%

Asia

3.1%

North America

2.6%

Europe, Africa
and Middle East

2.7%

Total

3.0%

20,00010,000

0
2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

13

Japanese Flavors and Fragrances Market Size
• Flavors account for approximately 80% of the Japanese flavors and fragrancesmarket (approx. 50% of the global market)
Japanese flavors and fragrancesmarket sales (Billion yen)

2019

2020

2021

2022

Breakdown of flavors and fragrances(FY2023)

2023

Total

227.5

225.7

235.7

243.2

258.3

Yr/Yr

1.7%

-0.8%

4.4%

3.2%

6.2%

Source of reference :Japan Flavor & Fragrance Materials
Association Magazine

14

Ⅳ．Management Policy

15

Management Policy
Become an Organizationthat takes on challenges

Strengthen Proposal
Capabilities

Focus Areas

Promote Reform
Concentration and Selection
Enhance Human Resources(Develop Human Resources, Hire Experienced Personnel)

Accelerate Expansion in Overseas Market（Capital Investment・M＆A）

Strengthen Sustainability Initiatives

Basic Strategies
ExpandCompounded
Flavors andFragrances
Sales

Secure Profits
in Domestic
MarketGrowth inOverseas
Market16

Ⅴ．Global Strategy

17

Domestic Strategies
Basic Strategy: Expand market share by anticipating new market demand caused bydeclining birthrate and aging population, as well as growing health consciousness

Fragrances
10％

Current initiatives and progress
Strengthen
production systems• Launch of the Fukaya plant project⇒ Renewal of existing facilities and expansion of production capacity inanticipation of future increase in demand

Promote solution sales
Enhance customer
success• Strengthen collaboration between sales, research, and marketing
departments under the Business Solutions Division• Enhance the quality of proposals ⇒ Utilizing marketing data, enhance
technical materials, and promote sales activities utilizing R&D results

Strengthen R&D
capabilities
Address expansion inflavor and fragrance
applications
Promote humancapital management

Flavors 90％
90％
Flavors

Sales breakdown• Speed up R&D ⇒ Review operations and work to improve operational efficiency• Create new value ⇒ Utilize AI technology and promote open innovation• Reinforcement of responses to SDGs by focusing on the development of flavors andingredients to replace the raw materials for food products ⇒ Focus on applications among
dairy products, vegetables, fruit juices, and alternative meat market (soy meat, etc.)• Strengthen measures in new sectors such as health foods, medical foods, and needs related
to masking odors in day-to-day life

・ Continue to examine and take improvement measures, considering human resources ascapital ⇒ Maximize the value of human resources to increase the mid- to long-term
corporate value

FYE September 30, 2024,
2Q results
Net sales: 19.8 billion yen(+3.0% Yr/Yr)
Operating profit: 2.4 billion yen(2.2% Yr/Yr)*Reference
EBITDA：3.2 billion yen（Plan） （Plan） （Plan）(3.5% Yr/Yr)

18

Promote human capital management
Continue to examine and take improvement measures, considering human resources as capital⇒ Maximize the value of human resources to increase the mid- to long-term corporate value

Combination of management
strategies and HR strategies• Implement HR system reform⇒Started introduction of a new HR system
in FY2021, completed in FY2023• Introduction of engagement survey

Promotion of human resource
education programs• Implementation of education programs foroverseas human resources• Systematically conduct layer-specific training• Launch in-house business school• Conduct OJT and job rotation

Promote human capitalmanagement
Development of a comfortable work
environment• Conduct a company-wide risk survey⇒Identify human rights-related risks and takea countermeasures• Consider and introduce various systems todevelop a more comfortable work
environment• Promote labor safety and health measures

Enhancement of disclosure• Set KPIs for “Human Rights and Labor”
in the CSR policy⇒To be disclosed in the Sustainability Report* KPI
Percentage of women, mid-careers, and foreign
employees in managerial positions, and percentageof evaluation interviews performed for setting job
targets

19

Overseas Strategy –U.S.–
Basic Strategy: Increase sales in the savory, health, and beverage sectors

Current initiatives and progress
Expand sales

・Achievement of both organic growth and scale expansion through acquisitions
Promotion of second plant construction plan as part of measures to create a new
production system (California)⇒Start of full-scale operation in June 2022, completion of the phase 2 constructionin November 2023
Start considering the phase 3 construction to further increase production
capacity to respond to future business expansion•

Create new
production system

Measures to restore
business performance

Utilize and deploy
Japanese technology

Yr/Yr+50.0%

Yr/Yr+14.3%•

Sales breakdown

Strengthen marketing systems and ensure pipeline management⇒ Formulate sector-specific long-term growth strategies and client-specific strategies based onmarket trend analysis, etc.
Despite being affected by the slowdown of the whole U.S. flavor industry, orders are on a recovery
trend. Net sales and operating profit are recovering in FYE September 2024

•
•

•
•
•

Yr/Yr
-6.3%

Bridge to Tokyo project:
Project team currently working to utilize and deploy Japanese technology in the U.S.
Localization of some technologies in the United States completed, which was responded to byclients positively
Promote sharing of formulas and technical information with R&D in Japan

Yr/Yr
+4.7%

Yr/Yr
+4.5%

Yr/Yr
+4.5%

FYE September 30, 2024,
2Q results
Net sales: 48.6 million U.S. dollars(7.2 billion yen, 8.8% Yr/Yr)
Operating Profit: 0.4 million U.S.
dollars(0.06 billion yen)

（Plan） （Plan） （Plan）*Reference
EBITDA：7.7 million U.S. dollars(1.15 billion yen, 37.3% Yr/Yr)* Savory flavors
Salty flavors used in savory snacks, dressings, seasonings, and other products

20Overseas Strategy –China–

Fragrances
22％

Basic Strategy: Grow earnings through various measures based on a stronger organizational foundation

Current initiatives and progress
Strengthen
production system• Launch of new plant construction project⇒ The construction of a new plant is planned in order to increase production capacity•

Strengthen sales
systems••

Utilize marketing functions⇒ Develop strategic approaches to customers, tap unentered sectors and potential
demandFocus on large and midsize local companies and utilize agents to expand
sales area
Deepen collaboration between sales, research, and marketing
Thoroughly manage pipelines and sales activities ⇒Started introduction of IT tools

Flavors 78％

Sales breakdown

Improve profitability• Thorough profit management⇒ Realize improvement in business performance in terms of both sales and profits

Strengthen researchsystems•

Yr/Yr+17.8%

Yr/Yr
-1.4%

•

Yr/Yr
+4.6%

Construction of the new research building was completed in November 2023
⇒ Aim to strengthen research functions and improve operational efficiency
Promote sharing of formulas and technical information with R&D in Japan

Yr/Yr
+4.1%

Yr/Yr
+4.3%

Yr/Yr
+4.3%

FYE September 30, 2024,
2Q results
Net sales: 265 million yuan
(5.4 billion yen, +2.5% Yr/Yr)
Operating profit: 72.1 million yuan
(1.48 billion yen, +16.1% Yr/Yr)（Plan） （Plan） （Plan）*Reference
EBITDA：88.7 million yuan
（1.82 billion yen, +12.5% Yr/Yr ）21

Overseas Strategy –Southeast Asia–
Basic Strategy: Increase sales through collaboration between manufacturing and sales bases in Malaysia (THKL) andsales sites in Thailand and Indonesia
Fragrances
7％

Current initiatives and progress
Strengthen
production system

・Launch of new plant construction project in Malaysia

Strengthen sales
systems• Acquire sales personnel and strengthen organization for new customer
development• Appoint someone to take responsibility for the Southeast Asian region⇒ Coordinate organic collaboration among Southeast Asian bases• Thoroughly manage pipelines and sales activities• Respond to customer globalization⇒ Strengthen cooperation between domestic and overseas sales

Flavors 93％

Sales breakdown

Speed up responses tocustomers• Promote utilization of application laboratories ⇒ Respond quickly to customer needs• Improve efficiency by expanding library and utilizing flavor kits

Strategic development
in Southeast Asia
using THKL as a hub

•
•
•
•

Yr/Yr
+8.5%

Yr/Yr
+31.1%

Yr/Yr+10.2%

Utilize THKL as a hub in Southeast Asia (for addressing Halal demand)
Guidance on research and production with personnel dispatched from Japan
Promote efficient R&D by systemizing operations
Promote sharing of formulas and technical information with R&D in Japan

Yr/Yr
+4.6%

Yr/Yr
+7.3%

Yr/Yr
+7.3%

FYE September 30, 2024,
2Q results
Net sales: 2.14 billion yen(+7.6% Yr/Yr)
Operating profit: 0.35 billion yen(+11.5% Yr/Yr)*Reference
EBITDA： 0.43 billion yen(+10.1% Yr/Yr)* Net sales are calculated by summing net export sales to Southeast Asia, which are included in the Company's non-consolidated net sales* T. HASEGAWA (SOUTHEAST ASIA) CO., LTD. (Thailand) has been included in the scope of consolidation since FYE September 2022. For conformity,
the figures before FYE September 2021 have been revised to include the company retroactively

22Basic Policies Related to Business Portfolio• Develop the businesses based on three basic strategies: (1) Expand Compounded Flavors andFragrances Sales, (2) Secure Profits in Domestic Market, and (3) Growth in Overseas
Market• Achieve abundant and healthy living through aromas and contribute to the creation of asustainable society■ Entered □ Not entered
Earnings foundation
Japan

FlavorBusiness
Providing flavorsthat make fooddelicious

U.S.

China

 Broad usage in thebeverage and foodindustries

 Usage mainly in savory
foods, beverages, andhealth sector

 Usage mainly inbeverages and instantnoodles Strengthen response to
SDGs• Development of flavors
and ingredients to
replace raw materials forfood products Trade mainly with local
companies Trade mainly withinternational and local
companies•

Contribution to FoodTech

 Strengthen measures in
new sectors• Health foods, medical
foods, etc.
 Broad usage in daily
necessities and cosmetics
industries

 Strengthen measures in
new sectors
Fragrance• Address need to mask
Businessodors in day-to-day life,etc.
• Propose ways to resolve
Providing
discomfort withfragrances that add
fragrancescolor to various

aspects of life

Growth drivers

 Strengthen response to
SDGs• Develop environmentallyfriendly fragrances Expand business throughM&A• Strengthen sweet flavors
with M&A in 2020
 Strengthen collaboration
with research
departments in Japan

T. Hasegawa Group has
yet to enter Tap unentered sectors
and potential demand• Focus on large andmidsize local companies• Expand area of sales byutilizing agents

Southeast Asia

 Usage mainly in seasoning
powders and beverages• Target further expansion
in beverage sectors
 Strengthen collaboration
between sites• Increase sales in Malaysia,
Thailand, and Indonesia• Strengthen cooperation
between domestic andoverseas sales
 Expand operations into
countries around sites• Expand into Vietnam, thePhilippines

 Usage mainly in daily
necessities industry
 Trade mainly with local
companies

Produ
ction

 Focus on expansion
among toiletry makers
 Strengthen collaboration
with research
departments in JapanSales Address with
exports fromJapan
⇒ Consider local
production basedon businessdevelopment
 Usage mainly
among body careproduct makers
 Focus on acquiring
new customers

23Summary of Global Strategies

Japan・Launch of the Fukaya plant project to reinforce our production capabilities
・Strengthen collaboration between sales, research, and marketing departments underthe Business Solutions Division
・Promote acceleration of research and development and the utilization of AI
and open innovation
・Reinforce response to SDGs by focusing on the development of flavors and ingredientsto replace raw materials for food products
・Promote human capital management. Maximize the value of human resources
to increase the mid- to long-term corporate value

U.S.

・Achievement of both organic growth and scale expansion through acquisitions
・Start considering the phase 3 of construction for Second Plant to further increase of
production capacity
・Strengthen marketing systems and ensure pipeline management
・Utilize and deploy Japanese technology by facilitating the sharing of technicalinformation with the R&D in JapanChina• Launch of new plant construction project to increase production capacity• Utilize marketing functions to focus on large and midsize local companies, and utilize
agents to expand sales area
• Ensure profit management ⇒ Aim to improve business performance from both sales andprofit perspectives• Construction of new research building completed in November 2023 and we arepromoting the sharing of information with R&D in Japan in order to further
strengthen our research capabilities

Southeast
Asia• New plant construction plan is underway in Malaysia to reinforce our production
capabilities• Strengthen cooperation between domestic and overseas sales to respond to
customer globalization• Speed up customer response by expanding library and utilizing flavor kits
• Promotion of efficient R&D based on work systemization
24

VI. Capital Policy

25Capital Policy
Basic Policy• Maintain a level of shareholders' equity that will enable us to execute growth investments and appropriately
respond to risks, in order to achieve sustainable growth in corporate value and maximize it going forward

Policy on Use of Funds• Appropriately use funds, taking into consideration factors such as the maintenance of a sound financial
position and enhancement of capital efficiency- Shareholder returns
Pay dividends from surplus twice a year, including interim and year-end dividends, targeting a consolidated
payout ratio of approximately 35%- Capital investment
Investment to increase production capacity for growth, as well as renewal and maintenance of existing
facilities- M&A
Give active consideration and judge comprehensively from the perspectives of market size, business risk, andacquisition price, etc.
Achieve M&A with expected synergies in terms of customer networks, technology, human resources, etc.
- Share buybacks
Consider if conditions set by our company are met

Investment Securities• Reduce the total number of shares held from the perspective of improving capital efficiency, etc. (someshares have already been sold and the Company will continue to consider opportunities to sell shares)• Each year, the Board of Directors verifies the appropriateness of holding shares from a medium- to longterm perspective, based on the holding purpose, economic rationality, and other factors

26

Capital Policy
Shareholder Returns• Strive to return profits to shareholders in accordance with business performance, while also securing thenecessary internal reserves to further strengthen the Group's management foundations and engage infuture business development• Pay dividends from surplus twice a year, including interim and year-end dividends, targeting a
consolidated payout ratio of approximately 35%• Introduced a shareholder benefit program in FYE September 2015 to encourage investors to hold theCompany’s shares over the medium- to long-term

100

50.0%

80
32.6%

33.6%

37.6%

37.8%

40.0%

31.3%
30.0%

60

31
40

55
20

61

20.0%

61

40

31

0

10.0%
0.0%

2020

2021

2022

2023

2024

（Plan）

27

Ⅶ．Basic Policy on
IR Activities

28Basic Policy on IR Activities
Basic Policy

Established IR department in Corporate Planning Div. to strengthen
IR activities and secured opportunities for proactive dialogue

Our initiatives• Actively respond to requests forindividual interviews• Hold meetings with foreign
institutional investors in English(President & CEO, and several
persons in charge ofoverseas IR)• High foreign ownership↓• Equally disclose information
to domestic and foreign investors↓

Strengthen
overseas
IR activity

Individualinterview

Financialresults briefing

Enhanceddisclosure• Secure opportunities for
the President & CEO to
directly provide explanations• Post financial results briefing
presentation materials (inJapanese and English), video of
meetings, and summaries of Q&A
sessions (in Japanese andEnglish) on the Company’s
websiteMake limited interview
time efficient• Post IR-related materials(in Japanese and English)on the Company’s
website• Strive to improve English
disclosure materials anddisclose them promptly• Contracted an external researchcompany to issue our analysis reportquarterly (in Japanese and English)⇒ Timely disclosure
29

Ⅷ．Accompanying Materials

30

Top 10 Companies by Share of Net Sales in the Global Flavors andFragrances Market

Company nameCountry

Million US$
Sales (2023Yr) Market Share

1

IFF

U.S.

8,453

22.6%

2

Givaudan

Switzerland

7,876

21.1%

3

dsm-firmenich

Switzerland・Netherlands

7,310

19.5%

4

SymriseGermany

5,125

13.7%

5

ADM

Germany

3,634

9.7%

6

Mane SAFrance

1,841

4.9%

7

Takasago

Japan

1,250

3.3%

8

Robertet SA

France

757

2.0%

9

Sensient Technologies

U.S.

741

2.0%

10

T.Hasegawa

Japan

438

1.2%

37,426100.0%

Total※ Estimated by the Company based on information disclosed by each company※ Excluding the following segments
dsm-firmenich：Health Nutrition & Care, Animal Nutrition & Health, Corporate
Takasago: Real Estate Segment; Sensient Technologies: ColorGroup ・ AsiaPacific Group; Robertet:
Lesactifs※ Nourish Segment and Scent Segment only for IFF, and Human Nutrition only for ADM※ FY2022 figures used for Mane SA
31

Top 10 Companies by Share of Net Sales in the Japanese Flavors andFragrances Market

Others14.1%
FY2022：14.3%

Company SI
5.8%
FY2022：5.5%

Company T
33.4%
FY2022：32.5%

Company SO
5.9%
FY2022: 6.1%

Company O
10.6%
FY2022：11.2%

Company G
11.7%

T.Hasegawa
18.5%
FY2022：18.5%

FY2022：11.9%(As of Mar. 2023）*1 Market shares calculated by taking the total non-consolidated net sales of the top 10 companies as 100, based ondata from a private research organization*2 The Company’s FYE in September; T, SO, and SI in March; and G and O in December
The Company's net sales in the above graph are calculated for the period from April 2022 to March 2023
32

Sales Breakdown• The Company specializes in high value-added compounded flavors and fragrances• High-mix production: Sales of approximately 12,000 flavors and fragrances per year
(Million yen)
T. Hasegawa

Company T(Consolidated）(Consolidated）

FY ended in Sep. 2023

FY ended in Mar. 2024

Sales

Share

Sales

Share

Flavors

57,07588.0%

109,162

55.7%

Fragrances

7,799

12.0%

62,69032.0%

Synthesized Aroma Chemicals－－

22,676

11.6%

Others

－

－

1,409

0.7%

64,874100.0%

195,940

100.0%

Total
Ratio of gross profit to sales

39.6%

28.8%

Ratio of operating profit to sales

11.6%

1.2%

33

Breakdown of Flavor Segment Customers by Industry• Many sales are to the beverage industry, and sales are seasonal
To other industries
Approx. 11%
To seasoning
industry
Approx. 11%

To beverageindustry
Approx. 33%

To instant noodle
industry
Approx. 9%

To sweet andsavory snacks
industry
Approx. 12%

To dairy industry
Approx. 24%

Note: Reference data is calculated by taking the cumulative total net sales(non-consolidated) of customers classifiable by industry for FYE
September 2024 2Q as 100

34

Analysis of Changes in Consolidated Statement of Profit• Operating profit growth factors
SG&A expenses rose, but profits were up mainly due to an increase in sales and an improvement in
the cost of sales ratio(Million yen)
前期
FY23
2Q

(Cumulative
第2四半期
results)（累計実績）

当期

増減
ChangeFY24 2Q

第2四半期(Cumulative
results)（累計実績）％

were up in all segments in Japan, North America and Asia
6.8% Sales
Of the increase, 947 million yen is attributable to yen down

31,313100.0% 33,453

100.0%

2,139

売上原価
Cost
of sales 18,885

60.3% 19,617

58.6%

732

12,428

39.7% 13,835

41.4%

1,407

SG&A expenses

8,842

28.2% 9,540

28.5%

697

営業利益 profit
Operating

3,585

11.4% 4,295

12.8%

710

売上高
Net
sales

売上総利益
Gross
profit
販売費及び
一般管理費

要因
Factor

金額
Amount日本・北米・アジアの全セグメントにおいて売上増加
増収額のうち、円安要因は947百万円

The cost of sales ratio improved by 1.7% due to changes to our product
売上構成の変化により売上原価率は1.7％改善

3.9% mix (Sales of the food segment are up 8.8%, and the fragrance segment（食品部門は8.8％の増収、フレグランス部門は６.1％の減収）
are down 6.1%.)

11.3%
Of the increase, 268 million yen is attributable to yen down
7.9% うち268百万円が、円安による円換算額の増加

19.8%（為替差益）(Foreign exchange gains)

経常利益profit
Ordinary

3,728

11.9% 4,555

13.6%

826

FY2023 2Q: Foreignexchange losses: 146 million yen
前期第2四半期
146百万円の為替差損

22.2% FY2024 2Q: Foreign exchange gains:

10 million yen* In addition to increased
operating profit, increase in foreign exchange
当期第2四半期
10百万円の為替差益
gains of 156 million yen affected ordinary profit※営業増益に加え、差額156百万円が経常増益要因
Profitbefore
税引前当期純利益
income taxes

3,947

12.6% 4,532

13.5%

584

14.8%

Net
profit
当期純利益

2,824

9.0% 3,198

9.6%

374

13.2%

* Net profit refers to profit attributable to owners of parent

35

Analysis of Changes in Consolidated Balance Sheet(Million yen)

流動資産assets
Current

Sep. 30,
前期末
2023

当期31,
Mar.
2024
第2四半期末増減
Change要因
Factor

70,66572,9982,332

Increase in Cash and cash equivalents (short-term
financial instruments)
・現預金及び同等物（短期金融商品）の増加
2,207百万円: 2,207 million yen
・棚卸資産の増加
464百万円• Increase in inventories:
464 million yen

・有形固定資産の増加
312百万円• Increase in property, plant and equipment: 312 million yen
・無形固定資産の減少• Decrease in intangible△406百万円
assets: (406) million yen• Decline of investment securities ： (341) million yen
・投資有価証券の減少 △341百万円

Non-current
固定資産
assets

68,46068,078

△ 382

資産合計
Total
assets139,125

141,076

1,950

Current
流動負債
liabilities

12,12912,093△ 36・仕入等債務の減少 △ 96百万円• Decrease in accounts payable: (96) million yen
・賞与引当金の減少△542百万円• Decrease in provision
for bonuses: (542) million yen•・未払法人税等の増加
Increase in income taxes
payable: 376 million yen
376百万円• Increase in accrued consumption taxes : 249 million yen
・未払消費税等の増加 249百万円

Non-current
固定負債
liabilities

10,677

10,167△ 510

・繰延税金負債の減少
・ Decrease in deferred tax△441百万円
liabilities ：(441) million yen

負債合計
Total
liabilities

22,80622,260△ 546

Netassets
純資産

116,319

118,8152,496

負債・純資産Total
liabilities
and合計net assets

139,125

141,076

1,950

・四半期純利益 3,198百万円• Net profit: 3,198 million yen
・為替換算調整勘定の増加
762百万円adjustment: 762million yen• Increase in foreign currency translation•
Decreaseinvaluationdifference
on securities: (249) million yen
・有価証券評価差額金の減少 △249百万円• Dividends of surplus: (1,275) million yen
・剰余金の配当 △1,275百万円

36Consolidated Statement of Cash Flows
前期

FY23 2Q(Cumulative
第2四半期
results)（累計実績）

営業活動によるCashflows fromoperatingactivities
キャッシュ・フロー

投資活動による

3,932

当期(Million yen)

FY24 2Q(Cumulative
第2四半期
results)（累計実績）

5,295

Change増減

当期第2四半期の主要科目
Major
items in FY24 2Q

・税金等調整前四半期純利益 4,532百万円• Profit before income taxes: 4,532 million yen
・減価償却費 1,936百万円• Depreciation: 1,936 million yen
・のれん償却額• Amortization of483百万円
goodwill: 483 million yen
1,363 • Increase in trade payables：563 million yen
・仕入債務の増加額 563百万円• Increase in inventory：(402) million yen
・棚卸資産の増加額• Income taxes paid:△402百万円(1,306) million yen
・法人税等の支払額 △1,306百万円• Purchase of property,△1,710百万円
plant and equipment: (1,710)
・有形固定資産の取得
million yen△ 4,368 ・無形固定資産の取得• Purchase of intangible△211百万円
fixed assets (211) million yen•・運用による払出し(定期預金・金融商品)
Paying by investment (term deposits andfinancial△3,625百万円
instruments) : (3,625) million yen

Cash flows fromキャッシュ・フロー
investingactivities△ 1,208△ 5,577

財務活動によるCashflows fromfinancing
activities
キャッシュ・フロー△ 1,368△ 1,355

Effectof exchange
現金及び現金同等物
rate change on cashに係る換算差額
andcash equivalents

△ 467

169

636

Net
increase
現金及び現金同等物(decrease) in cashの増減額
andcash equivalents

887△ 1,467△ 2,355

Cashand cash
現金及び現金同等物
equivalents atの期首残高
beginningof period

27,42529,9572,531

Cashand cash
現金及び現金同等物
equivalents at end ofの期末残高
period28,31328,489175

13 ・配当金の支払• Dividends paid:△1,275百万円(1,275) million yen

37Capital Expenditures, Depreciation, and R&D Expenses (Consolidated)(Million yen)

FY2024Plan

FY2024 2Q
ActualProgress(%)

CapitalInvestment

6,742

1,968

29.2%

Depreciation& Amortization

3,901

1,936

49.6%

Amortizationof Goodwill

892

483

54.2%

R&D
Expenses

5,586

2,642

47.3%

* Depreciation includes amortization of customer-related assets

38

T. Hasegawa non-consolidated (Actual)(Million yen)
FY2023 2Q
ActualAmountFY2024 2Q
Actual

Share

AmountChangeShare

Progress vsannual PlanYr/YrAmount％％Net Sales

19,243100.0%

19,819100.0%

575

3.0%

49.1%

Cost of Sales

11,75061.1%

12,033

60.7%

283

2.4%

49.4%

Gross Profit

7,493

38.9%

7,785

39.3%

291

3.9%

48.6%

SG&A Expenses

5,114

26.6%

5,353

27.0%

238

4.7%

47.8%

Operating Profit

2,379

12.4%

2,432

12.3%

52

2.2%

50.5%

Ordinary Profit

2,485

12.9%

6,990

35.3%

4,505

181.2%

74.1%

Profit before
Income Taxes

2,709

14.1%

6,981

35.2%

4,272

157.7%

69.1%

Net Profit

1,996

10.4%

5,796

29.2%

3,800

190.3%

71.7%• Sales of the flavor segment increased mainly because of beverages.
• SG&A expenses rose due to an increase in personnel expenses, but operating profit wasup due to contributions from sales increases and an improvement in the cost of sales
ratio with a changed product mix.
39

Consolidated U.S. subsidiary (Actual)* Statement of profit of T. HASEGAWA U.S.A., INC .

Yen Basis
Net Sales
Cost of Sales
Gross Profit
SG&A Expenses
Operating Profit
Ordinary Profit
Net Profit(Million yen)

FY2023 2Q
AmountShare
6,121
100.0%
4,028
65.8%
2,092
34.2%
2,290
37.4%
-197
-203
-166
-

FY2024 2Q
AmountShare
7,205
100.0%
4,517
62.7%
2,687
37.3%
2,619
36.4%
68
0.9%
111
1.6%
89
1.2%

Yen 136.96/USD

Yen 148.25/USD

Yr/Yr
Amount
1,084
488
595
329
266
314
255

％
17.7%
12.1%
28.5%
14.4%
-

8.2% lower(Thousand US$)

Local Currency Basis
Net Sales
Cost of Sales
Gross Profit
SG&A Expenses
Operating Profit
Ordinary Profit
Net Profit

FY2023 2Q
AmountShare
44,692100.0%
29,41765.8%
15,27434.2%
16,72037.4%-1,445-1,483-1,213-

FY2024 2Q
AmountShare
48,603100.0%
30,475
62.7%
18,12837.3%
17,667
36.4%
460
0.9%
753
1.6%
601
1.2%

Yr/Yr
Amount
3,911
1,057
2,853
947
1,906
2,237
1,814

％
8.8%
3.6%
18.7%
5.7%
-

• Sales was up mainly due to the reaction to the previous term in which customers tried toreduce orders due to an uncertain business outlook.
• Operating loss was returned to operating profit due to an increase in sales, animprovement in the cost of sales ratio with a changed product mix and SG&A expense
ratio.

40

Consolidated Chinese Subsidiaries (Actual)* Consolidated statements of profit of the Company's two consolidated subsidiaries in China (T. HASEGAWA FLAVOURSAND FRAGRANCES (SHANGHAI) CO., LTD. and T. HASEGAWA FLAVOURS (SUZHOU) CO., LTD.)(Million yen)

Yen Basis
Net Sales
Cost of Sales
Gross Profit
SG&A Expenses
Operating Profit
Ordinary Profit
Net Profit

FY2023 2Q
AmountShare
5,087
100.0%
2,912
57.3%
2,174
42.7%
955
18.8%
1,219
24.0%
1,283
25.2%
617
12.1%

FY2024 2Q
AmountShare
5,461
100.0%
2,941
53.9%
2,520
46.1%
1,037
19.0%
1,482
27.1%
1,534
28.1%
249
4.6%

Yen19.61/RMB

Yen20.54/RMB

Yr/Yr
Amount
374
29
345
82
262
250
-367

％
7.4%
1.0%
15.9%
8.6%
21.6%
19.5%
-59.6%

4.7% lower(Thousand RMB)

Local Currency Basis
Net Sales
Cost of Sales
Gross Profit
SG&A Expenses
Operating Profit
Ordinary Profit
Net Profit

FY2023 2Q
AmountShare
259,424100.0%
148,52857.3%
110,896
42.7%
48,71018.8%
62,18524.0%
65,471
25.2%
31,48212.1%

FY2024 2Q
AmountShare
265,916100.0%
143,22153.9%
122,69446.1%
50,521
19.0%
72,17327.1%
74,71028.1%
12,143
4.6%

Yr/Yr
Amount6,491-5,306
11,798
1,810
9,987
9,238
-19,339

％
2.5%
-3.6%
10.6%
3.7%
16.1%
14.1%
-61.4%• Sales of the flavor segment increased mainly because of beverages.
• Operating profit increased due to an increase in sales and an improvement in the cost of
sales ratio with a changed product mix.

41

Malaysian Subsidiary (Actual)* Statement of profit of T HASEGAWA FLAVOURS (KUALA LUMPUR) SDN. BHD.
(Million yen)

Yen Basis
Net Sales
Cost of Sales
Gross Profit
SG&A Expenses
Operating Profit
Ordinary Profit
Net Profit

FY2023 2Q
AmountShare
791
100.0%
465
58.7%
326
41.3%
224
28.3%
102
12.9%
102
12.9%
74
9.4%

FY2024 2Q
AmountShare
933
100.0%
501
53.7%
431
46.3%
260
27.9%
171
18.4%
184
19.8%
134
14.4%

Yen 30.60/MYR

Yen 31.48/MYR

Yr/Yr
Amount
141
36
105
36
69
82
60

％
17.9%
7.9%
32.2%
16.1%
67.5%
80.1%
81.3%

2.9% lower(Thousand Malaysian Ringgit)

Local Currency Basis
Net Sales
Cost of Sales
Gross Profit
SG&A Expenses
Operating Profit
Ordinary Profit
Net Profit

FY2023 2Q
ShareAmount25,877100.0%
15,20058.7%
10,676
41.3%
7,333
28.3%
3,343
12.9%
3,348
12.9%
2,419
9.4%

FY2024 2Q
AmountShare
29,656100.0%
15,93853.7%
13,717
46.3%
8,275
27.9%
5,442
18.4%
5,862
19.8%
4,264
14.4%

Yr/Yr
Amount
3,779
738
3,041
942
2,098
2,514
1,844

％
14.6%
4.9%
28.5%
12.9%
62.8%
75.1%
76.2%

• Sales were up mainly because of an increase in sales to Southeast Asia (Indonesia, etc.)• Operating profit increased due to an increase in sales and an improvement in the cost of
sales ratio and SG&A expense ratio.

42

Global Strategy - Actual and Plan by Region
T. HASEGAWA Non-consolidated(Billion yen)
2024

2025

2026

85.4

97.6

91.5

95.8

100.1

104.6

5.8

Operating Profit

6.1

4.1

-1.2

0.7

2.5

3.9

7.0

7.7

EBITDA

16.6

17.2

13.1

15.3

17.6

19.1

1.7%

2.5%

3.9%

50.0%

14.3%

-6.3%

4.7%

4.5%

4.5%

11.4%

11.9%

12.6%

13.5%

7.2%

4.2%

-

0.8%

2.5%

3.8%

15.7%

16.6%

17.0%

18.1%

19.4%

17.7%

14.4%

16.0%

17.7%

18.3%

37.3

39.1

39.7

40.4

41.4

43.0

Operating Profit

3.8

5.1

4.5

4.8

5.2

EBITDA

5.8

6.8

6.2

6.7

1.5%

4.9%

1.4%

10.4%

13.2%

15.6%

17.5%

EBITDA

to Net Sales（Plan） （Plan） （Plan）

China(Million RMB)
2024

2025

to Net Sales(Billion yen)Southeast Asia
2024

2025

2026

2.8

3.6

4.0

4.2

4.5

4.9

162.3

Operating Profit

0.3

0.6

0.6

0.6

0.7

0.8

190.8

201.0

EBITDA

0.5

0.7

0.8

0.8

0.9

0.9

4.1%

4.3%

4.3%

8.5%

31.1%

10.2%

4.6%

7.3%

7.3%

25.7%

25.6%

26.0%

26.4%

12.9%

16.3%

16.5%

15.8%

16.4%

16.9%

31.8%

31.7%

32.4%

32.7%

18.1%

20.7%

20.6%

19.4%

19.8%

20.2%

518.3

542.3

564.0

589.1

614.6

Operating Profit

137.0

113.7

139.2

144.0

153.2

EBITDA

167.5

146.0

172.5

179.2

17.8%

-1.4%

4.6%

26.1%

21.9%

31.9%

28.2%

to Net Sales

EBITDANet Sales

525.9

EBITDA

to Net Sales

2023

Net Salesto Net Sales

Operating Profit

2022

2023

Operating Profit

Yr/Yr（Plan） （Plan） （Plan）

2021

2022

Yr/Yr

Sales

2026

2021

Sales

2026

Net Sales

Net Salesto Net Sales

2025

2023

2023

Operating Profit

2024

2022

2022

Yr/Yr

(Million US$)
2021

2021

Sales

U.S.

（Plan） （Plan） （Plan）

Sales
Yr/Yr

Operating Profit
to Net Sales

EBITDA

to Net Sales（Plan） （Plan） （Plan）* Southeast Asia: T.HASEGAWA (SOUTHEAST ASIA) CO., LTD. (Thailand) has been included in the scope of consolidation since FY2022
For conformity, the figures before the FY2021 have been revised to include the company retroactively

43

Medium-Term Three-Year Plan (Consolidated)
T.HASEGAWA
non-consolidated

Expect sales increase by promoting solution sales through strengthening collaboration between sales,
research, and marketing departments, strengthening R&D capabilities, and addressing expansion inflavor and fragrance applications

U.S.

Increase sales in the savory, health, and beverage sectors

China

Strengthen sales systems by utilizing marketing functions and deepening collaboration between sales,
research, and marketing and expect sales increase by developing strategic approaches to customers
and tapping unentered sectors and potential demand

Malaysia

Expect higher sales by strengthening the cooperation among business sites in Southeast Asia,
strengthening sales systems to develop new customers, and speeding up customer response, etc.
(Million yen)
FY23（Actual）

FY24（Plan）

FY25（Plan）

FY26（Plan）

Net Sales

64,87466,50068,50071,500

Cost of Sales

39,18539,07039,90041,300Operating Profit

7,507

8,300

9,100

10,300Ordinary Profit

8,185

8,800

9,600

10,800Net Profit

6,671

6,750

7,150

7,900

EBITDA
Exchange Rate

12,11913,101

13,867

15,199¥138.98/$¥137.00/$¥137.00/$¥137.00/$

2.5%

3.0%

4.4%

Cost of Sales to Net Sales

60.4%

58.8%

58.2%

57.8%

Operating Profit to Net Sales

11.6%

12.5%

13.3%

14.4%

Ordinary Profit to Net Sales

12.6%

13.2%

14.0%

15.1%

Net Profit to Net Sales

10.3%

10.2%

10.4%

11.0%

EBITDA to Net Sales

18.7%

19.7%

20.2%

21.3%

46.5%

47.2%

48.0%

48.1%

Overseas net sales as a percentage
of consolidated net sales

Yr/Yr
+4.0%

Yr/Yr
+2.5%

Yr/Yr
+3.0%

Yr/Yr
+4.4%

¥19.68/RMB ¥19.50/RMB ¥19.50/RMB ¥19.50/RMB

4.0%

Sales Yr/Yr

Net Sales and Operating Profit of
T. Hasegawa consolidated* The Group's medium-term three-year plan is revised each fiscal year. See page 45 for details* Net profit in the table refers to profit attributable to owners of parent* Savory flavors: Flavors used in savory snacks, dressings, seasonings, and other salty products

44Medium-Term Three-Year Plan (Consolidated)（Million yen）
FY23（Actual）
AmountShare

FY24（Plan）%

AmountShare

FY25（Plan）%

AmountShare

FY26（Plan）%

AmountShare%

Net Sales

64,874 100.0%

4.0% 66,500 100.0%

2.5% 68,500 100.0%

3.0% 71,500 100.0%

4.4%

Cost of Sales

39,18560.4%

6.6% 39,070

58.8%-0.3% 39,900

58.2%

2.1% 41,300

57.8%

3.5%

Gross Profit

25,68939.6%

0.3% 27,430

41.2%

6.8% 28,600

41.8%

4.3% 30,200

42.2%

5.6%

SG&A Expenses

18,181

28.0%

3.5% 19,130

28.8%

5.2% 19,500

28.5%

1.9% 19,900

27.8%

2.1%

Operating Profit

7,507

11.6%

-6.8%

8,300

12.5%

10.6%

9,100

13.3%

9.6% 10,300

14.4%

13.2%

Ordinary Profit

8,185

12.6%

-9.8%

8,800

13.2%

7.5%

9,600

14.0%

9.1% 10,800

15.1%

12.5%

9,322

14.4% -17.3%

9,470

14.2%

1.6%

9,960

14.5%

5.2% 10,960

15.3%

10.0%

6,671

10.3% -16.7%

6,750

10.2%

1.2%

7,150

10.4%

5.9%

11.0%

10.5%

Profit before
Income Taxes
Net Profit

7,900* Net profit refers to profit attributable to owners of parent45

Capital Expenditures, Depreciation, and R&D Expenses•

T. Hasegawa non-consolidated DX promotion and IT reform project•

T.Hasegawa (non-consolidated) project of the Fukaya plant(Actual FY9/22: Approx. 0.5 billion yen, FY9/23: Approx. 0.5 billion yen)(Plan
FY9/24: Approx. 1.0 billion yen, FY9/25: Approx. 1.5 billion yen,
FY9/26: Approx. 1.5 billion yen)
(Plan

•
•
•

U.S. second plant construction plan

(Actual FY9/20～ FY9/23 : Approx.3.1 billion yen)(Plan
FY9/24: Approx. 0.9 billion yen, FY9/25: Approx. 0.8 billion yen)

China new research building construction plan

(Actual FY9/22: Approx. 0.3 billion yen , FY9/23: Approx. 0.6 billion yen)(Plan
FY9/24: Approx. 0.9 billion yen)

Plan for construction of a new plant in Suzhou, China
(Plan

•

FY9/25: Approx.3.0 billion yen, FY9/26: Approx. 3.0 billion yen)

FY9/26: Approx. 3.0 billion yen)

Malaysia new plant construction plan
(Plan

FY9/24: Approx. 1.5 billion yen, FY9/25: Approx. 1.5 billion yen,
FY9/26: Approx. 1.5 billion yen)•

R&D expenses trended at around 8% of consolidated net sales
FY2023
ActualFY2024Plan

FY2025Plan

FY2026
Plan

CapitalInvestment

4,256

6,742

9,482

11,326

Depreciation& Amortization

3,700

3,901

3,988

4,160

R&D
Expenses

5,247

5,586

5,675

5,790

46

This presentation is based on data as of May 10, 2024, and was createdwith the intention of providing information on future management plans andresults for the second quarter of the fiscal year ending September 30,
2024.
The views expressed in this material are those of the Company at the timeof preparation. No guarantees are provided in relation to the accuracy orcompleteness of this information, and it is subject to change without noticein future. Please note that the Company will not accept responsibility forany omissions or errors in the data, expressions, etc., used in thisdocument.
This document has been prepared by the Company and all rights related toits contents belong to the Company. Please refrain from copying or
reprinting without permission.

47