Translation
Notice: This document is an excerpt 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 Year Ended September 30, 2020
(Based on Japanese GAAP)
November 6, 2020
Company name:T. HASEGAWA CO., LTD.

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

URL

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

President & COO
Director & Senior Executive Vice President

Takao Umino
Minoru Nakamura

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

December 17, 2020
December 18, 2020

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

December 1, 2020
Yes

Holding of financial results meeting:

No

TEL

03-3241-1151(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended September 30, 2020 (from October 1, 2019 to September 30, 2020)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended September 30, 2020
50,192
(0.6)
5,356
14.5
5,861
13.2
5,090
23.5
Year ended September 30, 201950,493
1.5
4,678
(7.5)
5,175
(6.1)
4,121
0.5
Note: Comprehensive income

Year ended September 30, 2020
Year ended September 30, 2019

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
122.34
5.6
5.2
10.7
98.77
4.5
4.5
9.3

Diluted earnings per
share

Yen
122.7999.07

Year ended September 30, 2020
Year ended September 30, 2019¥3,297 million [–%]¥(1,270) million [–%]

Reference: Share of profit (loss) of entities accounted for using equity method

Year ended September 30, 2020
Year ended September 30, 2019¥– million¥– million(2) Consolidated financial position
Total assets
As of September 30, 2020
As of September 30, 2019
Reference: Equity

Net assets

Millions of yen
113,445
113,863

As of September 30, 2020
As of September 30, 2019

Millions of yen
92,21890,344Equity ratio

Net assets per share
%
81.1
79.2

Yen
2,217.96
2,174.84¥91,990 million¥90,148 million(3) Consolidated cash flows

Year ended September 30, 2020
Year ended September 30, 2019

Cash flows fromoperating activities
Millions of yen
6,387
9,230

Cash flows frominvesting activities
Millions of yen(431)(2,275)

1

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(1,511)
25,360(3,035)20,898

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

17.00
18.00

–
–

18.00
22.00

35.00
40.00

1,450
1,658

35.3
32.6

1.6
1.8

–

20.00

–

20.00

40.00

Year ended September 30, 2019Year ended September 30, 2020
Year ending September 30, 2021
(Forecast)

35.1

3. Forecast of consolidated financial results for the year ending September 30, 2021 (from October 1, 2020 to September 30, 2021)
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
52,100
3.8
5,160
(3.7)
5,570
(5.0)
4,730
(7.1)
114.04
4. Notes(1) Changes in significant subsidiaries during the year ended September 30, 2020(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

Yes
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2020

42,708,154 shares As of September 30, 201942,708,154 shares

Number of treasury shares at the end of the period
As of September 30, 2020

1,233,044 shares As of September 30, 2019

1,257,206 shares

41,458,341 shares Year ended September 30, 2019

41,601,873 shares

Average number of shares during the period
Year ended September 30, 20202

Reference: Summary of non-consolidated financial results
1. Non-consolidated financial results for the year ended September 30, 2020 (from October 1, 2019 to September 30, 2020)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended September 30, 2020
Year ended September 30, 2019

Operating profit

Millions of yen
36,82137,646% Millions of yen
(2.2)
3,704
2.0
3,835

Earnings per shareYen
116.30121.49Year ended September 30, 2020
Year ended September 30, 2019

Ordinary profit% Millions of yen
(3.4)
5,168
(3.6)
4,319

Profit% Millions of yen
19.6
4,821
(3.4)
5,054

%
(4.6)
55.6

Diluted earnings
per shareYen
115.87121.11(2) Non-consolidated financial position
Total assets
As of September 30, 2020
As of September 30, 2019
Reference: Equity

Net assets

Millions of yen
104,748
105,876

Equity ratio

Millions of yen
86,034
84,624As of September 30, 2020

¥85,805 million

As of September 30, 2019¥84,429 million

Net assets per share
%
81.9
79.7

Yen
2,068.85
2,036.84

2. Forecast of non-consolidated financial results for the year ending September 30, 2021 (from October 1, 2020 to September 30, 2021)
Percentages indicate year-on-year changes
Net sales
Full year

Millions of yen
38,500Operating profit% Millions of yen
4.6
3,980

Ordinary profit% Millions of yen
7.5
4,450

Profit% Millions of yen(13.9)
3,980

Earnings per share%(17.4)

Yen
95.96* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Proper use of forecasts of financial results, and other special matters
The forward-looking statements, including the earnings forecasts, 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.

3

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of September 30, 2019

As of September 30, 2020

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

15,73015,792

16,584
15,471

Securities
Merchandise and finished goods

7,999
7,236

12,0007,161Work in process
Raw materials and supplies

107
7,320

170
6,901

Other
Allowance for doubtful accounts

2,469
(35)

737
(13)

Total current assets

56,62059,01338,220(22,093)

38,942(23,027)

Buildings and structures, net

16,127

15,915

Machinery, equipment and vehicles
Accumulated depreciation

34,474(30,239)

34,926(30,931)

4,234

3,995

7,169
(5,964)

7,432(6,232)

1,205

1,200

Land
Construction in progress

7,014
234

6,793
1,440

Total property, plant and equipment

28,817

29,345716

572

Customer relationship
Other

2,609
851

2,414
852

Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation

Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

Intangible assets
Goodwill

Total intangible assets

4,177

3,839

Investments and other assets
Investment securities

22,68019,838Deferred tax assets
Retirement benefit asset

740
18

614
17

Other
Allowance for doubtful accounts

857
(48)

828
(51)

Total investments and other assets

24,24821,24657,24354,431

113,863

113,445

Total non-current assets
Total assets

4

(Millions of yen)
As of September 30, 2019

As of September 30, 2020

Liabilities
Current liabilities
Notes and accounts payable - trade

5,401

4,743

Current portion of long-term borrowings
Income taxes payable

0
1,648

–
630

Provision for bonuses
Provision for bonuses for directors (and other officers)

1,296
61

1,431
74

Other

3,301

3,381

Total current liabilities

11,70910,261

3,787
6,998

2,992
7,121

Asset retirement obligations
Long-term accounts payable - other

68
887

69
648

Other

68

131

Non-current liabilities
Deferred tax liabilities
Retirement benefit liability

Total non-current liabilities

11,80910,96523,51921,226

Share capital
Capital surplus

5,364
7,297

5,364
7,298

Retained earnings
Treasury shares

67,570(1,856)

71,169(1,820)Total shareholders' equity

78,37782,012

13,54011,551

Foreign currency translation adjustment
Remeasurements of defined benefit plans(1,459)(309)(1,316)(256)

Total accumulated other comprehensive income

11,771

9,978

195

228

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

Share acquisition rights
Total net assets
Total liabilities and net assets

590,344

92,218113,863

113,445

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
September 30, 2019

Fiscal year ended
September 30, 2020

Net sales

50,49350,192

Cost of sales

31,37330,783Gross profit

19,12019,408

927
5,983

947
6,114

860
61

954
74

Retirement benefit expenses
Welfare expenses

528
1,229

524
1,152

Depreciation
Amortization of goodwill

942
354

885
135

Other

3,553

3,263

Total selling, general and administrative expenses

14,441

14,052

4,678

5,356

Non-operating income
Interest income

90

95

Dividend income
Other

341
113

307
138

Total non-operating income

544

541

0

3

29
17

10
22

Selling, general and administrative expenses
Packing and transportation costs
Salaries and allowances
Provision for bonuses
Provision for bonuses for directors (and other officers)

Operating profit

Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets

47

36

5,175

5,861

–

359

Gain on sales of investment securities

2,665

867

Total extraordinary income

2,665

1,227

Impairment loss
Loss on abandonment of non-current assets

2,317
58

–
59

Total extraordinary losses

2,376

59

Profit before income taxes

5,464

7,028

Income taxes - current

2,146

1,774

Extraordinary losses

Income taxes - deferred

(803)

163

Total income taxes

1,343

1,938

Profit

4,121

5,090

Profit attributable to owners of parent

4,121

5,090

6

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

September 30, 2019

September 30, 2020

4,121

5,090

Valuation difference on available-for-sale securities
Foreign currency translation adjustment(3,712)(1,721)(1,989)142

Remeasurements of defined benefit plans, net of tax

41

52(5,392)(1,793)Comprehensive income

Total other comprehensive income(1,270)3,297

Comprehensive income attributable toComprehensive income attributable to owners of parent(1,270)

3,297

–

–

Comprehensive income attributable to non-controllinginterests

7

Consolidated statements of changes in equity
Fiscal year ended September 30, 2019
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

7,295

64,917

5,364

Total shareholders'equityTreasury shares(309)

77,268Changes during period
Dividends of surplus(1,468)(1,468)

Profit attributable to owners ofparent

4,121

4,121

Purchase of treasury shares
Disposal of treasury shares

1(1,565)(1,565)19

20

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

–

1

2,653

(1,546)

1,108

5,364

7,297

67,570(1,856)78,377

ShareacquisitionrightsTotal net assets

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

17,253261

Remeasurementsof defined
benefit plans

(350)

Total
accumulated
othercomprehensive
income17,164

149

94,582

Changes during period
Dividends of surplus(1,468)

Profit attributable to owners ofparent4,121

Purchase of treasury shares(1,565)

Disposal of treasury shares

20

Net changes in items other thanshareholders' equity(3,712)(1,721)41(5,392)45(5,346)

Total changes during period(3,712)(1,721)41(5,392)45(4,237)

Balance at end of period

13,540(1,459)(309)

11,771

195

90,3448

Fiscal year ended September 30, 2020
(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of period

Capital surplus

Retained earnings

7,297

67,5705,364

Total shareholders'equityTreasury shares(1,856)78,377

Changes during period
Dividends of surplus(1,492)(1,492)

Profit attributable to owners ofparent

5,090

5,090

Purchase of treasury shares
Disposal of treasury shares

0

(0)

(0)

35

36

Net changes in items other thanshareholders' equity
Total changes during period
Balance at end of period

–

0

3,598

35

3,634

5,364

7,298

71,169(1,820)82,012

ShareacquisitionrightsTotal net assets

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of period

13,540Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans(1,459)

(309)

Total
accumulated
othercomprehensive
income11,771

195

90,344

Changes during period
Dividends of surplus(1,492)

Profit attributable to owners ofparent

5,090

Purchase of treasury shares(0)

Disposal of treasury shares

36

Net changes in items other thanshareholders' equity(1,989)142

52(1,793)32(1,760)Total changes during period(1,989)142

52(1,793)32

1,874

Balance at end of period

11,551(1,316)

(256)

9,978

228

92,2189

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

September 30, 2019

September 30, 2020

5,464

7,028

3,019
2,317

2,868
–

Amortization of goodwill
Increase (decrease) in long-term accounts payable - other

354
(27)

135
(238)

Share-based remuneration expenses
Increase (decrease) in provision for bonuses

66
19

69
134

Increase (decrease) in provision for bonuses for directors (andother officers)

(2)

12

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability

31
231

(18)
198

Decrease (increase) in retirement benefit asset
Interest and dividend income

2
(431)

1
(403)

Interest expenses
Foreign exchange losses (gains)

0
22

3
23

Loss (gain) on sales of property, plant and equipment
Loss (gain) on sales of intangible assets

1
–

(318)
(39)

Loss on abandonment of non-current assets
Loss (gain) on sales and valuation of investment securities

58(2,665)59(867)

Decrease (increase) in trade receivables
Decrease (increase) in inventories

1,118
(322)

351
437

190
106

(661)
(56)

Depreciation
Impairment loss

Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net

458

(13)

Subtotal

10,0188,704Interest and dividends received

416

397

Interest paid
Income taxes paid

(0)
(1,203)(3)(2,712)

Net cash provided by (used in) operating activities

9,230

6,387

(3,234)(2,952)

2,091(2,056)

2,636(3,150)

Proceeds from sales of property, plant and equipment
Payments for retirement of property, plant and equipment

4
(24)

590
(30)

Purchase of intangible assets
Proceeds from sales of intangible assets

(90)
–

(108)
42

Purchase of investment securities
Proceeds from sales of investment securities

(34)
1,069

(36)
2,578

Net cash provided by (used in) investing activities(2,275)(431)

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment

10

(Millions of yen)
Fiscal year ended

Fiscal year ended

September 30, 2019

September 30, 2020

Cash flows from financing activities
Repayments of long-term borrowings

(1)

(0)

Purchase of treasury shares
Proceeds from sales of treasury shares(1,565)0(0)
0

Repayments of lease obligations
Dividends paid–
(1,468)(19)(1,491)

Net cash provided by (used in) financing activities(3,035)(1,511)

Effect of exchange rate change on cash and cash equivalents

(242)

17

Net increase (decrease) in cash and cash equivalents

3,677

4,461

Cash and cash equivalents at beginning of period

17,221

20,898Cash and cash equivalents at end of period

20,89825,36011

Segment Information
1. Outline of reportable segments
The T. Hasegawa group’s reportable segments are components of the group for which separate financial information
is available. These segments are periodically evaluated by the Board of Directors when deciding how to allocate
management resources and when assessing performance.
The T. Hasegawa group primarily engages in the manufacture and sales of fragrance and flavor products. Japan is incharge of the area including domestic market and overseas countries except for China, Malaysia, Indonesia, and the
U.S., and there are each subsidiary in China, Malaysia, Indonesia and the U.S. The subsidiaries haveself-management system in each country and these subsidiaries develop comprehensive strategy based on global
strategy made by the company, and engage in business activities on a regional basis.
Thus, the T. Hasegawa group is composed of segments separated by the location of group companies, whose location
is determined by the production and sales structure, and defines the three segments of “Japan,” “Asia,” and “USA,”as reportable segments.
2. Calculation method of net sales, profit or loss, assets, and other items in reportable segments
The accounting method used for reportable segments is the same as the method stated in “Significant Basic Items for
Preparation of Consolidated Financial Statements.” Segment profits of reportable segments are provided on an
operating income basis. Inter-segment sales or transfers are based on current market prices.

123. Information of net sales, profit or loss, assets, and other items for each reportable segment(1) Fiscal year ended September 30, 2019
(From October 1, 2018 to September 30, 2019)(Millions of yen)
Reportable segment
Japan

Asia

USA

Adjustment(Note 1,2)

Total

Consolidated(Note 3)

Net sales
Sales to externalcustomers

36,945

7,841

5,706

50,493－50,493

711

197

132

1,041

(1,041)－

Total

37,657

8,039

5,838

51,535(1,041)50,493

Segment profit

3,872

540

149

4,563

115

4,678

Segment assets

106,285

16,684

8,064

131,035(17,171)

113,863

Depreciation

2,076

554

388

3,019

－

3,019

Amortization of
Goodwill

－

140

213

－

－

354

Interest income

12

85

3

101

(11)

90

Interest expenses

0

0

11

12

(11)

0

Impairment loss

36

－

2,281

2,317

－

2,317

Inter-segment sales ortransfers

Other items

Increase in property,
1,390
175
238
1,804
－
1,804
plant and equipment andintangible assets
Term-end balance of
－
716
－
－
－
716
Goodwill
Notes
1. The adjustments on segment profit of 115 million yen include 64 million yen of inter-segment transactions, 52
million yen of adjustments for inventories related to inter-segment transactions, and negative 1 million yen for others.
2. The adjustments for segment assets of negative 17,171 million yen include adjustments for negative 17,034 million
yen of inter-segment transaction and corporate assets, and negative 136 million yen of inventories related tointer-segment transactions, and 0 million yen for others.
3. Segment profit is adjusted to operating income of consolidated statements of income.

13

(2) Fiscal year ended September 30, 2020
(From October 1, 2019 to September 30, 2020)(Millions of yen)
Reportable segment
Japan

Asia

USA

Adjustment(Note 1,2)

Total

Consolidated(Note 3)

Net sales
Sales to externalcustomers

36,130

7,923

6,138

50,192－50,192

700

173

115

989

(989)

－

Total

36,831

8,096

6,254

51,181(989)

50,192

Segment profit

3,729

1,029

549

5,307

48

5,356

Segment assets

105,132

17,0808,867

131,080(17,635)

113,445

Depreciation

1,959

534

374

2,868

－

2,868

Amortization of
Goodwill

－

135

－

－

－

135

Interest income

10

90

4

105

(9)

95

Interest expenses

0

4

5

9

(6)

3

Impairment loss

－

－

－

－

－

－

Inter-segment sales ortransfers

Other items

Increase in property,
1,507
456
1,516
3,481
－
3,481
plant and equipment andintangible assets
Term-end balance of
－
572
－
－
－
572
Goodwill
Notes
1. The adjustments on segment profit of 48 million yen include 48 million yen of inter-segment transactions, 3million yen of adjustments for inventories related to inter-segment transactions, and negative 3 million yen for others.
2. The adjustments for segment assets of negative 17,635 million yen include adjustments for negative 17,464 million
yen of inter-segment transaction and corporate assets, and negative 171 million yen of inventories related tointer-segment transactions, and 0 million yen for others.
3. Segment profit is adjusted to operating income of consolidated statements of income.

14