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 Six Months Ended March 31, 2023
(Based on Japanese GAAP)May 12, 2023
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

TEL 03-3241-1151

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

May 15, 2023
June 1, 2023

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:Yes
Yes (for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the six months ended Mach 31, 2023 (from October 1, 2022 to Mach 31, 2023)(1) Consolidated operating results (cumulative)
Net sales
Six months ended Mach 31, 2023
Six months ended Mach 31, 2022
Note: Comprehensive income

Millions of yen
31,31329,199%7.2
11.7

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen
%
3,585
(6.2)
3,728 (12.6)
2,824(14.9)
3,823
28.8
4,266
29.1
3,318
5.8

Six months ended Mach 31, 2023¥(303) million [–%]

Six months ended Mach 31, 2022

¥5,209 million [(3.8)%]

Earnings per share

Diluted earnings per share

Yen
68.65
80.69

Six months ended Mach 31, 2023
Six months ended Mach 31, 2022

Yen
68.40
80.44

(2) Consolidated financial position
Total assets
As of Mach 31, 2023
As of September 30, 2022
Reference: Equity

Net assets

Millions of yen
129,816
133,553

Equity ratio

Millions of yen
109,426
111,017

As of Mach 31, 2023

¥109,157 million

As of September 30, 2022

¥110,777 million

%
84.1
82.9

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

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
–
–

Yen
29.00
30.00

Yen
–

Yen
32.00

Yen
61.00

–

31.00

61.00

Year ended September 30, 2022
Year ending September 30, 2023
Year ending September 30, 2023
(Forecast)
Note: Revision of cash dividend forecast most recently announced: No

Total

3. Forecast of consolidated financial results for the year ending September 30, 2023 (from October 1, 2022 to September 30, 2023)
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
66,0005.8
7,000 (13.1)
7,450 (17.9)
6,170 (22.9)
149.96
Note: Revision of consolidated financial results forecast most recently announced: No
4. Notes(1) Changes in significant subsidiaries during the six months ended Mach 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 Mach 31, 2023

42,708,154 shares As of September 30, 2022

42,708,154 shares

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

1,562,784 shares As of September 30, 2022

1,562,744 shares

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

41,145,376 shares Six months ended Mach 31, 2022

41,125,893 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
* Proper use of forecasts of financial results, and other special matters(Caution regarding forward-looking statements and others)
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. For the suppositions that form the assumptions for financial forecasts
and cautions concerning the use thereof, please refer to “1. Qualitative information on financial results for the period, (3) Explanation of
consolidated financial results forecast and other forward-looking statements” on page 3 of the Attached Material.
(How to obtain supplementary material on financial results)
The Company plans to hold a financial results meeting for institutional investors and analysts through live streaming on Wednesday, May 24,
2023.
Materials for the financial results meeting will be disclosed on TDnet and posted on the Company’s website.

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(Significant subsequent event)............................................................................................................................. 10

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1. Qualitative information on financial results for the period(1) Explanation of operating results
The Japanese economy in the six months ended March 31, 2023 continued to present an uncertain outlook resulting
from concerns regarding the impact on economic activities in Japan and overseas due to the situation in Ukraine
becoming prolonged and soaring raw material and energy prices, despite the economy showing signs of recovery
amid the easing of behavioral restrictions accompanying the novel coronavirus disease (COVID-19) and thenormalizing of social and economic activities.
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.
Under this environment, giving primary consideration to quality control of products and securing of safety, theGroup worked to further improve research and technology development capabilities and focused on developmentof the Company’s unique high quality and high value-added products.
In the six months ended March 31, 2023, net sales increased by ¥2,114 million (7.2%) year on year, amounting to¥31,313 million. The Company’s non-consolidated net sales increased by 3.1% year on year. As for net sales ofmajor overseas consolidated subsidiaries, net sales of subsidiaries in the USA increased by 11.6% year on year
(down 6.3% on a local currency basis) due to the impact of the weaker Japanese yen, those of subsidiaries in China
increased by 12.6% year on year (up 3.6% on a local currency basis), and those of subsidiaries in Malaysia
increased by 34.1% year on year (up 20.4% on a local currency basis).
By division, net sales of the Flavor Division increased by 7.6% year on year, amounting to ¥27,131 million, due
mainly to increased net sales of the Company, on a non-consolidated basis, and our subsidiaries in China, andincreased net sales of U.S. subsidiaries due to the impact of the weaker Japanese yen.
Net sales of the Fragrance Division increased by 5.2% year on year, amounting to ¥4,182 million due mainly toincreases in non-consolidated sales of the Company and in sales of subsidiaries in China.
As for profit, operating profit decreased by ¥238 million (6.2%) year on year to ¥3,585 million due largely to thedeterioration of the ratio of cost to sales in association with an increase in raw material cost and an increase in
selling, general and administrative expenses. Ordinary profit decreased by ¥538 million (12.6%) year on year to¥3,728 million due largely to a decrease in operating profit and the recording of foreign exchange losses of ¥146
million (the recording of foreign exchange gains of ¥196 million in the same period of the previous fiscal year). As
a result, profit attributable to owners of parent decreased by ¥493 million (14.9%) year on year to ¥2,824 million.
Furthermore, the yen exchange rates for major currencies (average rate for the period) applied for translation in thestatements of income for the six months ended March 31, 2023 are as follows.
1 USD=136.96 JPY (114.96 JPY in the same period of the previous fiscal year, 19.1% yen depreciation YoY)
1 RMB=19.61 JPY (18.04 JPY in the same period of the previous fiscal year, 8.7% yen depreciation YoY)
1 RM=30.60 JPY (27.46 JPY in the same period of the previous fiscal year, 11.4% yen depreciation YoY)
Operating results by segment are as follows. Furthermore, operating results by segment include inter-segment
sales, etc.
(Japan)Net sales were ¥19,250 million (up 3.1% year on year), and segment profit was ¥2,377 million (down 5.6% year onyear).
(Asia)Net sales were ¥7,140 million (up 14.4% year on year), and segment profit was ¥1,341 million (up 24.0% year onyear).
(USA)
Net sales were ¥6,195 million (up 12.1% year on year), and segment loss was ¥196 million (segment profit of ¥274
million in the same period of the previous fiscal year).

2(2) Explanation of financial position(Current assets)
While securities, and merchandise and finished goods increased by ¥999 million and ¥652 million, respectively,
compared to the end of the fiscal year ended September 30, 2022, current assets decreased by ¥397 million
compared to the end of the fiscal year ended September 30, 2022 to ¥65,592 million due largely to decreases incash and deposits, notes and accounts receivable - trade, and raw materials and supplies by ¥222 million, ¥1,351
million, and ¥462 million, respectively.
(Non-current assets)
While investment securities increased by ¥196 million compared to the end of the fiscal year ended September 30,
2022, non-current assets decreased by ¥3,339 million compared to the end of the fiscal year ended September 30,
2022 to ¥64,224 million due largely to progress in amortization resulting in decreases in property, plant andequipment, goodwill, and customer relationship included in intangible assets by ¥1,464 million, ¥953 million, and¥1,242 million, respectively.
(Current liabilities)
Current liabilities decreased by ¥2,235 million compared to the end of the fiscal year ended September 30, 2022 to¥11,096 million due largely to decreases in notes and accounts payable - trade, income taxes payable and provision
for bonuses by ¥215 million, ¥611 million and ¥673 million, respectively, compared to the end of the fiscal year
ended September 30, 2022.
(Non-current liabilities)
Non-current liabilities increased by ¥89 million to ¥9,293 million compared to the end of the fiscal year ended
September 30, 2022 due largely to an increase in deferred tax liabilities by ¥132 million compared to the end of the
fiscal year ended September 30, 2022.
(Net assets)
While retained earnings and valuation difference on available-for-sale securities increased by ¥1,507 million and¥135 million, respectively, total net assets decreased by ¥1,590 million to ¥109,426 million due largely to adecrease in foreign currency translation adjustment by ¥3,288 million compared to the end of the fiscal year ended
September 30, 2022.
Furthermore, the yen exchange rates for major currencies (at the end of the period) applied for translation in thebalance sheets as of March 31, 2023 are as follows.
1 USD=133.53 JPY (144.81 JPY at the end of the previous fiscal year, 7.8% yen appreciation YoY)
1 RMB=19.42 JPY (20.37 JPY at the end of the previous fiscal year, 4.7% yen appreciation YoY)
1 RM=30.27 JPY (31.24 JPY at the end of the previous fiscal year, 3.1% 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 11, 2022.

3

2. Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheets(Millions of yen)
As of September 30, 2022
AssetsCurrent 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
Notes and 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

As of March 31, 2023

20,351
18,722
8,999
7,750
78
9,013
1,099
(26)
65,98920,12917,370
9,999
8,403
141
8,550
1,022
(24)
65,592

19,593
14,15833,752

18,42913,85732,287

6,815
13,37920,194

5,861
12,31018,172

12,589
18
1,039
(30)
13,616
67,563
133,553

12,78518988(27)
13,76464,224
129,816

6,211
1,694
1,632

5,996
1,082
958

74

–

3,718
13,331

3,059
11,096

1,101
7,442
69
212
378
9,204
22,536

1,234
7,440
69
203
345
9,293
20,390(Millions of yen)
As of September 30, 2022
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 assets

5

As of March 31, 2023

5,364
7,513
81,898(2,555)92,2205,364
7,513
83,406(2,555)93,728

6,657
12,098(199)
18,556239
111,017
133,553

6,793
8,809
(173)
15,429269
109,426
129,816(2) Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended
March 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

6

Six months ended
March 31, 2023

29,19917,11012,0888,265
3,823

31,313
18,885
12,428
8,842
3,585

75
121
196
61
455

83
130
–
91
306

3
–
8
12
4,266

3
146
12
162
3,728

486
486

253
253

13
13
4,739
1,385
3,354
36
3,318

34
34
3,947
1,122
2,824
–
2,824

Consolidated statements of comprehensive income (cumulative)(Millions of yen)Six months ended
March 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

Six months ended
March 31, 2023

3,354

2,824

(2,501)
4,331
24
1,855
5,209

135
(3,288)25(3,127)
(303)

5,154

(303)

55

–

(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 second
quarter ended March 31, 2023.

8

(Segment information, etc.)[Segment information]
I. Six months ended March 31, 2022 (from October 1, 2021 to March 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)

17,558

6,158

5,481

29,199–29,199

Revenue from contracts withcustomers

17,558

6,158

5,481

29,199–29,199

Sales to external customers
Inter-segment sales or transfers

17,558
1,108

6,158
85

5,481
47

29,1991,240–(1,240)29,199–Total

18,667

6,244

5,528

30,439(1,240)29,199

2,518

1,081

274

3,875

(51)

3,823

Segment profit or loss
Notes:

1.

The adjustments on segment profit of negative ¥51 million include ¥32 million of inter-segment transactions, negative ¥80
million of adjustments for inventories, and negative ¥3 million for others.
2. Segment profit 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. Six months ended March 31, 2023 (from October 1, 2022 to March 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)

18,146

7,049

6,116

31,313–31,313

Revenue from contracts withcustomers

18,146

7,049

6,116

31,313–31,313

Sales to external customers
Inter-segment sales or transfers

18,146
1,103

7,049
91

6,116
78

31,313
1,274–(1,274)31,313–

Total

19,250

7,140

6,195

32,587(1,274)31,313

2,377

1,341

(196)

3,522

62

3,585

Segment profit or loss
Notes:

1.

The adjustments on segment profit or loss of ¥62 million include ¥38 million of inter-segment transactions, ¥24 million ofadjustments for inventories, and ¥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.

9

(Significant subsequent event)
The Company resolved to sell part of the investment securities held by the Company at the Board of Directors’ meeting
held on February 3, 2023 in order to review the holdings of cross-shareholdings, and it partially completed the sale ofsuch investment securities on April 21 and April 28, 2023. The Company will hereby record ¥423 million of gain onsale of investment securities in extraordinary income for the third quarter ending June 30, 2023.

10