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, 2022
(Based on Japanese GAAP)May 11, 2022
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 13, 2022
June 1, 2022

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 March 31, 2022 (from October 1, 2021 to March 31, 2022)(1) Consolidated operating results (cumulative)
Net sales
Six months ended March 31, 2022
Six months ended March 31, 2021
Note: Comprehensive income

Millions of yen
29,19926,135

Operating profit
%
11.7
6.8

Millions of yen
3,823
2,968

%
28.8
20.2

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen
%
4,266
29.1
3,318
5.8
3,304
22.9
3,138
49.9

Six months ended March 31, 2022

¥5,209 million [(3.8)%]

Six months ended March 31, 2021

¥5,413 million [288.6%]

Earnings per share

Diluted earnings per share

Yen
80.69
75.65

Six months ended March 31, 2022
Six months ended March 31, 2021

Yen
80.44
75.37

(2) Consolidated financial position
Total assets
As of March 31, 2022
As of September 30, 2021
Reference: Equity

Net assets

Millions of yen
123,151
120,945

Equity ratio

Millions of yen
102,71398,301

As of March 31, 2022

¥102,259 million

As of September 30, 2021

¥98,051 million

%
83.0
81.1

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

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen
–
–

Yen
22.00
29.00

Yen
–

Yen
33.00

Yen
55.00

–

30.00

59.00

Year ended September 30, 2021
Year ending September 30, 2022
Year ending September 30, 2022
(Forecast)
Note: Revision of cash dividend forecast most recently announced: No

Total

3. Forecast of consolidated financial results for the year ending September 30, 2022 (from October 1, 2021 to September 30, 2022)
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
61,800
10.8
7,290
6.3
8,000
7.1
7,300
7.9
177.50Note: Revision of consolidated financial results forecast most recently announced: Yes
4. Notes(1) Changes in significant subsidiaries during the six months ended March 31, 2022
(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
Changes in accounting policies due to revisions to accounting standards and other regulations:
Yes
Changes in accounting policies due to other reasons:
Changes in accounting estimates:

No
No

Restatement of prior period financial statements:
No
Note: For details, please refer to “Changes in accounting policies” under “2. Quarterly consolidated financial statements and significant notes
thereto, (3) Notes to quarterly consolidated financial statements” on page 8 of the Attached Material.
(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 2022

42,708,154 shares As of September 30, 2021

42,708,154 shares

Number of treasury shares at the end of the period
As of March 31, 2022

1,562,622 shares As of September 30, 2021

1,608,431 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended March 31, 2022

41,125,893 shares Six months ended March 31, 2021

41,481,396 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 Monday, May 30,
2022.
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(Changes in significant subsidiaries during the six months ended March 31, 2022)............................................. 8(Application of special accounting methods for preparing quarterly consolidated financial statements) ............. 8(Changes in accounting policies) ........................................................................................................................... 8(Segment information, etc.) ................................................................................................................................. 10

1

1. Qualitative information on financial results for the period(1) Explanation of operating results
In the six months ended March 31, 2022, amid the prolonged impact of the novel coronavirus disease (COVID-19),
the Japanese economy faced concerns about the impact of the escalating situation in Ukraine and steep price rises
for resources and raw materials, etc., on economic activities in Japan and overseas, and the future remained
uncertain.
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 addition, earnings performance of US-based MISSION FLAVORS & FRAGRANCES, INC. (“MISSION”),
which newly became a consolidated subsidiary in December 2020, contributed to consolidated operating results of
the Group (for the same period of the previous fiscal year, results were recorded for the three months of January to
March of 2021).
Furthermore, Thailand subsidiary T. HASEGAWA (SOUTHEAST ASIA) CO., LTD. and Taiwan subsidiary T.
HASEGAWA FLAVOURS AND FRAGRANCES (TAIWAN) CO., LTD., which were non-consolidated
subsidiaries, have newly been included under the scope of consolidation effective from the first quarter ended
December 31, 2021, due to increased materiality for the Group.
In the six months ended March 31, 2022, net sales increased year on year, amounting to ¥29,199 million (up 11.7%
year on year). The Company’s non-consolidated net sales increased by 4.3% year on year. As for net sales of major
overseas consolidated subsidiaries, net sales of subsidiaries in the USA (including MISSION) increased by 40.7%
year on year (up 28.7% on a local currency basis), those of subsidiaries in China increased by 12.2% year on year
(relatively unchanged on a local currency basis), and those of subsidiaries in Malaysia increased by 19.4% year on
year (up 12.0% on a local currency basis).
By division, net sales of the Flavor Division increased by 13.7% year on year, amounting to ¥25,223 million, due
mainly to increased net sales from our U.S. subsidiaries (including MISSION) and our Chinese subsidiaries and the
new addition of our Thailand subsidiary and Taiwan subsidiary to the scope of consolidation.
Net sales of the Fragrance Division increased by 0.7% year on year, amounting to ¥3,975 million due mainly to anincrease in non-consolidated sales of the Company.
As for profit, although selling, general and administrative expenses increased in line with an increase in personal
expenses and amortization of goodwill of MISSION, etc., operating profit increased by ¥854 million (28.8%) year
on year to ¥3,823 million due largely to an increase in gross profit resulting from the increase in net sales andimprovement in the ratio of cost to sales. Ordinary profit increased by ¥961 million (29.1%) year on year to ¥4,266
million. Profit attributable to owners of parent increased by ¥180 million (5.8%) year on year to ¥3,318 million,
due mainly to an increase in ordinary profit, despite a decrease in extraordinary income resulting from a decrease ingain on sale of investment securities.
Operating results by segment are as follows. Furthermore, operating results by segment include inter-segment
sales, etc.
(Japan)Net sales were ¥18,667 million (up 4.3% year on year), and segment profit was ¥2,518 million (up 49.5% year onyear).
(Asia)Net sales were ¥6,244 million (up 32.9% year on year), and segment profit was ¥1,081 million (up 2.7% year onyear).
(USA)
Net sales were ¥5,528 million (up 40.3% year on year), and segment profit was ¥274 million (up 30.5% year onyear).

2

(2) Explanation of financial position(Current assets)
While cash and deposits, securities, merchandise and finished goods, and raw materials and supplies increased by¥1,379 million, ¥999 million, ¥402 million, and ¥910 million, respectively, compared to the end of the fiscal year
ended September 30, 2021, current assets increased by ¥3,059 million compared to the end of the fiscal year ended
September 30, 2021 to ¥58,302 million, due largely to a decrease of ¥455 million in notes and accounts receivable trade.
(Non-current assets)
While construction in progress, included in property, plant and equipment, and customer relationship, included inintangible assets, increased ¥1,409 million and ¥617 million, respectively, compared to the end of the fiscal year
ended September 30, 2021, non-current assets decreased by ¥854 million compared to the end of the fiscal year
ended September 30, 2021 to ¥64,849 million, due largely to a decrease of ¥3,667 million in investment securities.
(Current liabilities)
While income taxes payable and provision for bonuses decreased by ¥483 million and ¥581 million, respectively,
compared to the end of the fiscal year ended September 30, 2021, current liabilities decreased by ¥1,057 million
compared to the end of the fiscal year ended September 30, 2021 to ¥10,546 million, due largely to an increase of¥336 million in notes and account payable - trade.
(Non-current liabilities)
Non-current liabilities decreased by ¥1,147 million compared to the end of the fiscal year ended September 30,
2021 to ¥9,892 million, due largely to a decrease in deferred tax liabilities by ¥878 million.
(Net assets)
While retained earnings and foreign currency translation adjustment increased by ¥2,296 million and ¥4,312
million, respectively, compared to the end of the fiscal year ended September 30, 2021, total net assets increased by¥4,411 million compared to the end of the fiscal year ended September 30, 2021 to ¥102,713 million, due largely toa decrease in valuation difference on available-for-sale securities by ¥2,501 million.

(3) Explanation of consolidated financial results forecast and other forward-looking statements
Revisions have been made to the consolidated financial results forecast announced on November 12, 2021. For
details, please refer to “Receipt of Dividends From Consolidated Subsidiaries and Revisions to Financial Results
Forecast for the Year” released today (May 11, 2022).

3

2. Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheets(Millions of yen)
As of September 30, 2021
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, 2022

19,037
17,063
3,999
7,516
120
6,444
1,077
(17)
55,242

20,417
16,607
4,999
7,919
124
7,354
899
(21)
58,302

15,977
14,11730,09416,08915,774
31,863

6,043
10,67016,713

6,200
11,495
17,695

17,93021998(55)
18,89465,703
120,945

14,263
21
1,060
(55)
15,29064,849123,151

5,000
1,653
1,550

5,337
1,169
968

59

–

3,340
11,604

3,070
10,546

2,643
7,314
63
629
388
11,04022,644

1,765
7,461
63
221
379
9,892
20,438(Millions of yen)
As of September 30, 2021
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
Non-controlling interests
Total net assets
Total liabilities and net assets

5

As of March 31, 2022

5,364
7,305
76,107(2,630)86,1475,364
7,306
78,404(2,555)88,52010,272
1,852(221)
11,903250–
98,301
120,945

7,771
6,164
(196)
13,739206
246
102,713
123,151

(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, 2021
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
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, 2022

26,135
15,582
10,553
7,584
2,968

29,19917,11012,088
8,265
3,823

55
123
111
60
351

75
121
196
61
455

3
11
15
3,304

3
8
12
4,266

1,137
1,137

486
486

7
7
4,435
1,297
3,138
–
3,138

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

Consolidated statements of comprehensive income (cumulative)(Millions of yen)Six months ended
March 31, 2021
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, 2022

3,138

3,354

(236)
2,485
25
2,275
5,413

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

5,413

5,154

–

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.

(Changes in significant subsidiaries during the six months ended March 31, 2022)
Not applicable.
Furthermore, while it does not constitute a change in specified subsidiaries, T. HASEGAWA (SOUTHEAST ASIA)
CO., LTD. and T. HASEGAWA FLAVOURS AND FRAGRANCES (TAIWAN) CO., LTD., which were nonconsolidated subsidiaries, have been included under the scope of consolidation effective from the first quarter ended
December 31, 2021, due to increased materiality.

(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, 2022.

(Changes in accounting policies)(Application of Accounting Standard for Revenue Recognition, etc.)
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the first quarter ended December 31, 2021, and it hasrecognized revenue at the time the control of promised goods or services is transferred to the customer at the amount
expected to be received upon exchange of said goods or services.
As a result of this application, the previous treatment of the portion of the consideration payable to customers as salescommission that was previously recorded as selling, general and administrative expenses will be changed to the methodof deducting such payables from the transaction price. Furthermore, for transactions with variable consideration, whenthat uncertainty is resolved after the fact, it will be included in the transaction price only for the portion of revenue
highly unlikely to be significantly reduced. Furthermore, for subcontract processing transactions with supply ofmaterials for value that are repurchase agreements treated as financial transactions, the Company continues torecognize the outstanding supplies held by the subcontractor as inventories. At the same time the amount equivalent to
the outstanding supplies held by the subcontractor will be recognized as “Liabilities for subcontract processing
transactions with supply of materials for value,” included in “Other” under current liabilities.
Furthermore, the Company has applied the alternative treatment stipulated in paragraph 98 of the “Implementation
Guidance on Accounting Standard for Revenue Recognition” and recognizes revenue at the time of shipment when the
period from the time of shipment until the time that control of the merchandise or finished goods is transferred to thecustomer is a typical period in cases of domestic sale of merchandise and finished goods in Japan.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations is subject to thetransitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard for Revenue Recognition.
The cumulative effect of the retrospective application, assuming the new accounting policy had been applied to periods
prior to the beginning of the first quarter ended December 31, 2021 was added to or deducted from the opening balance8

of retained earnings of the first quarter ended December 31, 2021, and thus the new accounting policy was applied
from such opening balance; provided, however, that the new accounting policy was not retrospectively applied tocontracts for which nearly all the revenue amounts had been recognized according to the previous treatment in periods
prior to the beginning of the first quarter ended December 31, 2021, by applying the method provided for in paragraph
86 of the Accounting Standard for Revenue Recognition. Furthermore, by applying the method set forth in item (1) of
the supplementary provisions of paragraph 86 of the Accounting Standard for Revenue Recognition, modifications tocontracts carried out prior to the beginning of the first quarter ended December 31, 2021 were accounted for based on
the contractual terms after all contract modifications were reflected. Consequently, this cumulative effect was added toor deducted from the opening balance of retained earnings of the first quarter ended December 31, 2021.
As a result, the effect of this application on the quarterly consolidated financial statements in the six months ended
March 31, 2022 is immaterial. There is immaterial effect on the opening balance of retained earnings of the fiscal year
ending September 30, 2022.
Furthermore, the information on disaggregation of revenue from contracts with customers during the six months ended
March 31, 2021 has not been disclosed as allowed by the transitional treatment provided for in paragraph 28-15 of the
Accounting Standard for Quarterly Financial Reporting (ASBJ Statement No. 12, March 31, 2020).
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4,2019) and relevant ASBJ regulations from the beginning of the first quarter ended December 31, 2021, and it hasapplied the new accounting policy provided for by the Accounting Standard for Fair Value Measurement, etc.
prospectively in accordance with the transitional measures provided for in paragraph 19 of the Accounting Standard
For Fair Value Measurement, and paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ
Statement No. 10, July 4, 2019). There is no effect on the quarterly consolidated financial statements.

9

(Segment information, etc.)I.

Six months ended March 31, 2021 (from October 1, 2020 to March 31, 2021)

1. Information on net sales and profit or loss for each reportable segment(Millions of yen)
Reportable segment
Japan

Asia

USA

Total

Adjustment(Note 1)

Consolidated(Note 2)

Net sales
Sales to external customers
Inter-segment sales or transfers

17,598
298

4,640
57

3,896
44

26,135
399

–
(399)

26,135–

Total

17,897

4,697

3,940

26,535(399)

26,135

1,684

1,053

210

2,948

20

2,968

Segment profit
Notes:

1.

The adjustments on segment profit of ¥20 million include ¥25 million of inter-segment transactions, ¥3 million ofadjustments for inventories, and negative ¥8 million for others.
2. Segment profit is adjusted to operating profit in the consolidated statements of income (cumulative).

II. 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(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
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.

2. Matters related to changes in reportable segments, etc.
As described in “Changes in accounting policies,” the Company has applied the Accounting Standard for Revenue
Recognition and relevant ASBJ regulations from the beginning of the first quarter ended December 31, 2021, andchanged the accounting treatment for revenue recognition. Accordingly, the Company has changed the method of
measuring profit or loss of operating segments. Furthermore, the information on disaggregation of revenue fromcontracts with customers during the six months ended March 31, 2021 has not been disclosed as allowed by thetransitional treatment provided for in paragraph 28-15 of the Accounting Standard for Quarterly Financial
Reporting (ASBJ Statement No. 12, March 31, 2020).
Moreover, following the new addition of T. HASEGAWA (SOUTHEAST ASIA) CO., LTD. and T. HASEGAWAFLAVOURS AND FRAGRANCES (TAIWAN) CO., LTD., which were unconsolidated subsidiaries, to the scopeof consolidation effective from the first quarter ended December 31, 2021, those two companies have been
included in the reportable segment “Asia.”

10