Translation
Notice: This document is a translation of the original Japanese document and is only for reference purposes. In the event of any discrepancy
between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Three Months Ended December 31, 2023
(Based on Japanese GAAP)
February 9, 2024
Company name:T. HASEGAWA CO., LTD.

Stock exchange listing: Tokyo
Stock code:
4958
Representative:
Inquiries:

URL https://www.t-hasegawa.co.jp/

President & CEO
Director & Senior Executive Vice President

Takao Umino
Minoru Nakamura

Scheduled date to file Quarterly Securities Report:
Scheduled date to commence dividend payments:

February 14, 2024–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:No
No

TEL 03-3241-1151(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended December 31, 2023 (from October 1, 2023 to December 31, 2023)(1) Consolidated operating results (cumulative)
Net sales
Three months ended December 31,
2023
Three months ended December 31,2022
Note: Comprehensive income

Operating profit

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen%

Millions of yen%

Millions of yen%

16,413

5.8

1,828

19.3

1,854

29.2

1,331

27.9

15,515

8.5

1,532

(5.1)

1,435

(18.3)

1,041(14.5)

Three months ended December 31, 2023¥(1,069) million [–%]

Three months ended December 31, 2022¥(2,502) million [–%]

Earnings per share
Three months ended December 31,
2023
Three months ended December 31,
2022

Diluted earnings per share
Yen

Yen

32.35

32.22

25.30

25.22

(2) Consolidated financial position
Total assets
As of December 31, 2023
As of September 30, 2023
Reference: Equity

Net assets

Millions of yen
135,395
139,125

As of December 31, 2023
As of September 30, 2023

Equity ratio

Millions of yen
113,987
116,319

%
84.0
83.4

¥113,679 million¥116,024 million

2. Cash dividends
Annual dividends per share
1st quarter-end

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
–
–

Yen
30.00

Yen
–

Yen
31.00

Yen
61.00

–

31.00

62.00

Year ended September 30, 2023
Year ending September 30, 2024
Year ending September 30, 2024
31.00
(Forecast)
Note: Revision of cash dividend forecast most recently announced: No

Total

3. Forecast of consolidated financial results for the year ending September 30, 2024 (from October 1, 2023 to September 30, 2024)
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Full year
66,500
2.5
8,300
10.6
8,800
7.5
6,750
1.2
164.05
Note: Revision of consolidated financial results forecast most recently announced: No
4. Notes(1) Changes in significant subsidiaries during the three months ended December 31, 2023
(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Application of special accounting methods for preparing quarterly consolidated financial statements:
Yes
Note: For details, please refer to “Application of special accounting methods for preparing quarterly consolidated financial statements” under“2. Quarterly consolidated financial statements and significant notes thereto, (3) Notes to quarterly consolidated financial statements” onpage 8 of the Attached Material.
(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
No
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023

42,708,154 shares As of September 30, 2023

42,708,154 shares

Number of treasury shares at the end of the period
As of December 31, 2023

1,562,888 shares As of September 30, 2023

1,562,828 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Three months ended December 31, 2023

41,145,311 shares Three months ended December 31, 2022

41,145,380 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
* Proper use of the forecast of financial results, and other special matters
The forward-looking statements, including the earnings forecast, shown in this document are based on information currently available to theCompany and on certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges to realize suchstatements. Actual results may differ substantially due to various factors. For the suppositions that form the assumptions for financial results
forecast and cautions concerning the use thereof, please refer to “1. Qualitative information on financial results for the period, (3) Explanationof consolidated financial results forecast and other forward-looking statements” on page 3 of the Attached Material.

Attached Material Index
1. Qualitative information on financial results for the period .......................................................................................... 2(1) Explanation of operating results ............................................................................................................................ 2(2) Explanation of financial position ........................................................................................................................... 3(3) Explanation of consolidated financial results forecast and other forward-looking statements .............................. 3
2. Quarterly consolidated financial statements and significant notes thereto .................................................................. 4(1) Consolidated balance sheets .................................................................................................................................. 4(2) Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)........................................................................................................................................................... 6
Consolidated statements of income (cumulative) .................................................................................................. 6
Consolidated statements of comprehensive income (cumulative) ......................................................................... 7(3) Notes to quarterly consolidated financial statements ............................................................................................ 8(Uncertainties of entity’s ability to continue as going concern) ............................................................................ 8(Notes when there are significant changes in amounts of equity) ......................................................................... 8(Application of special accounting methods for preparing quarterly consolidated financial statements) ............. 8(Segment information, etc.) ................................................................................................................................... 9

1

1. Qualitative information on financial results for the period(1) Explanation of operating results
The Japanese economy in the three months ended December 31, 2023 showed signs of a gradual recovery, withimprovements in employment and income amid the continued normalization of social and economic activities. On
the other hand, the outlook for the economy remained uncertain amid concerns over the impacts on domestic andoverseas economic activities of developments in the international situation, soaring raw material and resource
prices, rising commodity prices, strong fluctuations in foreign exchange rates, etc.
The flavor and fragrance industry remained in a severe situation due largely to maturation of the domestic market,
fiercer competition among peers, and growing demand for quality assurance.
In this environment, giving primary consideration to quality control of products and securing of safety, the Group
worked to further improve research and technology development capabilities and focused on development of theCompany’s unique high quality and high value-added products.
In the three months ended December 31, 2023, net sales increased by ¥898 million (5.8%) year on year, amounting
to ¥16,413 million. The Company’s non-consolidated net sales increased by 4.9% year on year. As for net sales ofmajor overseas consolidated subsidiaries, net sales of subsidiaries in the USA increased by 20.0% year on year (up14.9% on a local currency basis), those of subsidiaries in China decreased by 4.6% year on year (down 7.3% on a
local currency basis), and those of subsidiaries in Malaysia increased by 3.0% year on year (up 1.3% on a local
currency basis).
By division, net sales of the Flavor Division increased by 8.7% year on year, amounting to ¥14,458 million, due
mainly to increased net sales of the Company on a non-consolidated basis, and increased net sales of subsidiaries in
the USA.
Net sales of the Fragrance Division decreased by 11.8% year on year, amounting to ¥1,955 million due mainly todecreases in non-consolidated sales of the Company and net sales of subsidiaries in China.
As for profit, operating profit increased by ¥296 million (19.3%) year on year to ¥1,828 million due largely tohigher sales and improved cost-of-sales ratio. Ordinary profit increased by ¥419 million (29.2%) year on year to¥1,854 million due largely to an increase in operating profit and a decrease in foreign exchange losses. As a result,profit attributable to owners of parent increased by ¥289 million (27.9%) year on year to ¥1,331 million.
Furthermore, the yen exchange rates for major currencies (average rate for the period) applied for translation in thestatements of income for the three months ended December 31, 2023 are as follows.
1 USD=147.89 JPY (141.59 JPY in the same period of the previous fiscal year, 4.4% yen depreciation YoY)
1 RMB=20.44 JPY (19.87 JPY in the same period of the previous fiscal year, 2.9% yen depreciation YoY)
1 RM=31.50 JPY (30.98 JPY in the same period of the previous fiscal year, 1.7% yen depreciation YoY)
Operating results by segment are as follows. Furthermore, operating results by segment include inter-segment
sales, etc.
(Japan)Net sales were ¥9,980 million (up 4.9% year on year), and segment profit was ¥1,101 million (up 3.0% year onyear).
(Asia)Net sales were ¥3,737 million (down 1.8% year on year), and segment profit was ¥799 million (up 9.5% year onyear).
(USA)
Net sales were ¥3,531 million (up 21.3% year on year), and segment loss was ¥65 million (segment loss of ¥294
million in the same period of the previous fiscal year).

2(2) Explanation of financial position(Current assets)
Current assets decreased by ¥1,318 million compared to the end of the fiscal year ended September 30, 2023 to¥69,347 million due largely to an increase in securities by ¥5,999 million and decreases in cash and deposits andnotes and accounts receivable - trade by ¥6,282 million and ¥948 million, respectively, compared to the end of the
fiscal year ended September 30, 2023.
(Non-current assets)
Non-current assets decreased by ¥2,411 million compared to the end of the fiscal year ended September 30, 2023 to¥66,048 million due largely to decreases in property, plant and equipment, goodwill, customer relationshipincluded in intangible assets, and investment securities by ¥624 million, ¥541 million, ¥767 million, and ¥468
million respectively, compared to the end of the fiscal year ended September 30, 2023.
(Current liabilities)
Current liabilities decreased by ¥714 million compared to the end of the fiscal year ended September 30, 2023 to¥11,414 million due largely to an increase in accounts payable - trade by ¥363 million and a decrease of ¥1,044
million in provision for bonuses, compared to the end of the fiscal year ended September 30, 2023.
(Non-current liabilities)
Non-current liabilities decreased by ¥682 million to ¥9,994 million compared to the end of the fiscal year ended
September 30, 2023 due largely to a decrease in deferred tax liabilities by ¥602 million.
(Net assets)
Total net assets decreased by ¥2,332 million compared to the end of the fiscal year ended September 30, 2023 to¥113,987 million due largely to a decrease in foreign currency translation adjustment by ¥2,090 million.
Furthermore, the yen exchange rates for major currencies (at the end of the period) applied for translation in thebalance sheets at the end of the three months ended December 31, 2023 are as follows.
1 USD=141.83 JPY (149.58 JPY at the end of the previous fiscal year, 5.2% yen appreciation YoY)
1 RMB=19.93 JPY (20.46 JPY at the end of the previous fiscal year, 2.6% yen appreciation YoY)
1 RM=30.86 JPY (31.88 JPY at the end of the previous fiscal year, 3.2% yen appreciation YoY)

(3) Explanation of consolidated financial results forecast and other forward-looking statements
No revisions have been made to the consolidated financial results forecast announced on November 10, 2023.

3

2. Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheets(Millions of yen)
As of September 30, 2023

As of December 31, 2023

25,69919,863
7,000
8,045
115
8,689
1,273
(22)
70,665

19,417
18,915
12,999
8,070
38
8,901
1,025
(21)
69,34720,042
15,27135,314

19,406
15,284
34,6906,060
13,564
19,624

5,518
12,776
18,294

12,414
18
1,113
(24)
13,521
68,460139,125

11,946
18
1,125
(26)
13,06366,048135,395

5,425
819
1,630

5,788
712
585

70

–

4,184
12,1294,328
11,414

1,354
7,516
69
195
1,541
10,67722,806

752
7,492
69
190
1,489
9,994
21,408AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Accounts payable - trade
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (and otherofficers)
Other
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Retirement benefit liability
Asset retirement obligations
Long-term accounts payable - other
Other
Total non-current liabilities
Total liabilities

4

(Millions of yen)
As of September 30, 2023

As of December 31, 2023

5,364
7,513
86,019(2,556)
96,341

5,364
7,513
86,074(2,556)
96,396

6,554
13,352(223)
19,682
295
116,319
139,125

6,229
11,261(208)
17,282
307
113,987
135,395

Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets5(2) Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Three months ended
December 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on abandonment of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to owners of parent

6

Three months ended
December 31, 2023

15,515
9,414
6,100
4,568
1,532

16,413
9,722
6,691
4,862
1,828

43
26
34
104

67
31
38
136

1
189
9
201
1,435

6
98
6
110
1,854

10
10
1,425
383
1,041
1,041

2
2
1,852
520
1,331
1,331

Consolidated statements of comprehensive income (cumulative)(Millions of yen)Three months ended
December 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

Three months ended
December 31, 2023

1,041

1,331

320
(3,876)
12(3,543)(2,502)(324)(2,090)15(2,400)(1,069)(2,502)(1,069)––(3) Notes to quarterly consolidated financial statements(Uncertainties of entity’s ability to continue as going concern)
Not applicable.

(Notes when there are significant changes in amounts of equity)
Not applicable.

(Application of special accounting methods for preparing quarterly consolidated financial statements)(Calculation of income tax expense)
Tax expense is calculated by multiplying the profit before income taxes by the reasonably estimated effective tax rates
after the application of tax effect accounting to the profit before income taxes for the fiscal year including the firstquarter ended December 31, 2023.

8

(Segment information, etc.)[Segment information]
I. Three months ended December 31, 2022 (from October 1, 2022 to December 31, 2022)
1. Information on net sales and profit or loss for each reportable segment and information on disaggregation ofrevenue(Millions of yen)
Reportable segment
Japan
Net sales
Flavor and fragrance business(Note 3)

Asia

USA

Total

Adjustment(Note 1)

Consolidated(Note 2)

8,905

3,754

2,855

15,515–

15,515

Revenue from contracts withcustomers

8,905

3,754

2,855

15,515–

15,515

Sales to external customers
Inter-segment sales or transfers

8,905
613

3,754
53

2,855
55

15,515
721

–
(721)

15,515
–

Total

9,518

3,807

2,910

16,236(721)

15,515

1,069

730

(294)

1,505

26

1,532

Segment profit or loss
Notes:

1.

The adjustments on segment profit or loss of ¥26 million include ¥18 million of adjustments for intra-group transactions
related to inter-segment transactions, ¥8 million of adjustments for inventories, and negative ¥0 million for others.
2. Segment profit or loss is adjusted to operating profit in the consolidated statements of income (cumulative).
3. The Flavor and fragrance business is composed mainly of the manufacturing and sales of flavors and fragrances, and the net
sales of the Flavor and fragrance business are composed mainly of revenue from goods transferred to customers at a specificpoint in time.

II. Three months ended December 31, 2023 (from October 1, 2023 to December 31, 2023)
1. Information on net sales and profit or loss for each reportable segment and information on disaggregation ofrevenue(Millions of yen)
Reportable segment
Japan
Net sales
Flavor and fragrance business(Note 3)

Asia

USA

Total

Adjustment(Note 1)

Consolidated(Note 2)

9,282

3,707

3,424

16,413–

16,413

Revenue from contracts withcustomers

9,282

3,707

3,424

16,413–

16,413

Sales to external customers
Inter-segment sales or transfers

9,282
697

3,707
30

3,424
107

16,413
835

–
(835)

16,413
–

Total

9,980

3,737

3,531

17,249(835)

16,413

1,101

799

(65)

1,836

(7)

1,828

Segment profit or loss
Notes:

1.

The adjustments on segment profit of negative ¥7 million include ¥29 million of adjustments for intra-group transactions
related to inter-segment transactions, negative ¥36 million of adjustments for inventories, and negative ¥1 million for others.
2. Segment profit or loss is adjusted to operating profit in the consolidated statements of income (cumulative).
3. The Flavor and fragrance business is composed mainly of the manufacturing and sales of flavors and fragrances, and the net
sales of the Flavor and fragrance business are composed mainly of revenue from goods transferred to customers at a specificpoint in time.

9