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 Year Ended September 30, 2023
(Based on Japanese GAAP)
November 10, 2023
Company name:T. HASEGAWA CO., LTD.
Stock exchange listing: Tokyo
Stock code:
4958
URL https://www.t-hasegawa.co.jp/
Representative:
President & CEO
Takao Umino
Inquiries:
Director & Senior Executive Vice President Minoru Nakamura
TEL 03-3241-1151
Scheduled date of ordinary general meeting of shareholders:
December 21, 2023
Scheduled date to file Securities Report:
December 22, 2023
Scheduled date to commence dividend payments:
December 5, 2023
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended September 30, 2023 (from October 1, 2022 to September 30, 2023)(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, 2023
64,874
4.0
7,507
(6.8)
8,185
(9.8)
6,671
(16.7)
Year ended September 30, 2022
62,398
11.9
8,051
17.4
9,075
21.6
8,007
18.4
Note: Comprehensive income

Year ended September 30, 2023
Year ended September 30, 2022
Earnings per share[(47.0)%][69.3%]

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
161.545.9
6.0
11.6
193.97
7.7
7.1
12.9

Diluted earnings per
share

Yen
162.16
194.65

Year ended September 30, 2023
Year ended September 30, 2022

¥7,798 million¥14,713 million

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

Year ended September 30, 2023
Year ended September 30, 2022¥– million¥– million(2) Consolidated financial position
Total assets
As of September 30, 2023
As of September 30, 2022
Reference: Equity

Net assets

Millions of yen
139,125
133,553

As of September 30, 2023
As of September 30, 2022

Millions of yen
116,319
111,017Equity ratio

Net assets per share
%
83.4
82.9

Yen
2,819.86
2,692.34¥116,024 million¥110,777 million(3) Consolidated cash flows

Year ended September 30, 2023
Year ended September 30, 2022

Cash flows fromoperating activities
Millions of yen
8,012
8,001

Cash flows frominvesting activities
Millions of yen(3,092)
1,208

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(2,657)
29,957(2,721)
27,425

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

Year ended September 30, 2022
Year ended September 30, 2023
Year ending September 30, 2024
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

29.00
30.00

–
–

32.00
31.00

61.00
61.00

2,509
2,509

31.3
37.6

2.4
2.2

–

31.00

–

31.00

62.00

37.8

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
4. Notes(1) Changes in significant subsidiaries during the year ended September 30, 2023
(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:
Yes
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:

No
Restatement of prior period financial statements:
No
Note: For details, please refer to “Changes in accounting policies” under “3. Consolidated financial statements and significant notes thereto,(5) Notes to consolidated financial statements” on page 15 of the Attached Material.
(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, 2023

42,708,154 shares

As of September 30, 2022

42,708,154 shares

1,562,828 shares

As of September 30, 2022

1,562,744 shares

41,145,353 sharesYear ended September 30, 2022

41,134,938 shares

Number of treasury shares at the end of the period
As of September 30, 2023
Average number of shares during the period
Year ended September 30, 2023

Note: For further details about the number of shares as a basis for calculation of earnings per share (consolidated), please refer to “Per
share information” under “3. Consolidated financial statements and significant notes thereto, (5) Notes to consolidated financial
statements” on page 19 of the Attached Material.

Reference: Summary of non-consolidated financial results
1. Non-consolidated financial results for the year ended September 30, 2023 (from October 1, 2022 to September 30, 2023)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended September 30, 2023
Year ended September 30, 2022

Operating profit

Millions of yen
39,711
39,174%1.4
4.9

Earnings per share
Yen
113.72211.50Year ended September 30, 2023
Year ended September 30, 2022

Millions of yen
4,538
5,151

Ordinary profit% Millions of yen(11.9)
5,125
32.4
8,992

Profit%(43.0)
102.1

Millions of yen
4,679
8,700

%
(46.2)
80.5

Diluted earnings
per shareYen
113.29210.76(2) Non-consolidated financial position
Total assets
As of September 30, 2023
As of September 30, 2022
Reference: Equity

Net assets

Millions of yen
110,157
107,980

As of September 30, 2023
As of September 30, 2022

Equity ratio

Millions of yen
91,64789,567

Net assets per share
%
82.9
82.7

Yen
2,220.23
2,171.02¥91,352 million¥89,327 million

2. Forecast of non-consolidated financial results for the year ending September 30, 2024 (from October 1, 2023 to September 30, 2024)
Percentages indicate year-on-year changes
Net sales
Full year

Millions of yen
40,400Operating profit% Millions of yen
1.7
4,820

Ordinary profit% Millions of yen
6.2
9,430

Profit% Millions of yen
84.0
8,080

Earnings per share
%
72.7

Yen
196.38* Financial results reports are exempt from audit conducted by certified public accountants or an audit corporation.
* Proper use of the forecast of financial results, and other special matters(Caution regarding forward-looking statements and others)
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. Overview of operating results and others, (4) Future outlook” on page 4 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, November
22, 2023.
Materials for the financial results meeting will be disclosed on TDnet and posted on the Company’s website.

Attached Material Index
1. Overview of operating results and others .................................................................................................................... 2(1) Overview of operating results for the fiscal year................................................................................................... 2(2) Overview of financial position for the fiscal year ................................................................................................. 2(3) Overview of cash flows for the fiscal year ............................................................................................................ 3(4) Future outlook ....................................................................................................................................................... 4(5) Basic policy on profit distribution and dividends for the fiscal year and next fiscal year ..................................... 4
2. Basic concept regarding selection of accounting standards ......................................................................................... 6
3. Consolidated financial statements and significant notes thereto .................................................................................. 7(1) Consolidated balance sheets .................................................................................................................................. 7(2) Consolidated statements of income and consolidated statements of comprehensive income ............................... 9
Consolidated statements of income ....................................................................................................................... 9
Consolidated statements of comprehensive income ............................................................................................ 10(3) Consolidated statements of changes in equity ..................................................................................................... 11(4) Consolidated statements of cash flows ................................................................................................................ 13(5) Notes to consolidated financial statements .......................................................................................................... 15(Uncertainties of entity’s ability to continue as going concern) .......................................................................... 15(Changes in accounting policies)......................................................................................................................... 15(Segment information, etc.) ................................................................................................................................. 15(Per share information) ........................................................................................................................................ 19(Significant subsequent event) ............................................................................................................................ 20

1

1. Overview of operating results and others(1) Overview of operating results for the fiscal year
The Japanese economy in the fiscal year ended September 30, 2023 showed signs of moderate recovery due to theeasing of behavioral restrictions as the novel coronavirus disease (COVID-19) was reclassified as a Class 5
infectious disease, and the normalizing of social and economic activities. On the other hand, the economy
continued to present an uncertain outlook fueled by concerns regarding the impact on economic activities in Japanand overseas due to the situation in Ukraine becoming prolonged, soaring raw material and resource prices, and theweaker Japanese yen and other factors.
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 fiscal year ended September 30, 2023, net sales increased by ¥2,476 million (4.0%) year on year, amounting
to ¥64,874 million. The Company’s non-consolidated net sales increased by 1.4% year on year. As for net sales ofmajor overseas consolidated subsidiaries, net sales of subsidiaries in the USA increased by 4.6% 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 8.6% year on year (up 4.6% on a local currency basis), and those of subsidiaries in Malaysia increased
by 24.2% (up 16.9% on a local currency basis).
By division, net sales of the Flavor Division increased by 5.0% year on year, amounting to ¥57,075 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 decreased by 3.0% year on year, amounting to ¥7,799 million due mainly to adecrease in non-consolidated sales of the Company.
As for profit, operating profit decreased by ¥544 million (6.8%) year on year to ¥7,507 million due largely to anincrease in selling, general and administrative expenses as well as the deterioration in cost-of-sales ratio in
association with increases mainly in raw material cost. Ordinary profit decreased by ¥890 million (9.8%) year on
year to ¥8,185 million due largely to decreases in operating profit and in foreign exchange gains. Profit attributableto owners of parent decreased by ¥1,335 million (16.7%) year on year to ¥6,671 million due largely to decreases inordinary profit and in gain on sale of investment securities.
Furthermore, the yen exchange rates for major currencies (average rate for the period) applied for translation in thestatements of income for the fiscal year ended September 30, 2023 are as follows.
1 USD=138.98 JPY (124.46 JPY in the previous fiscal year, 11.7% yen depreciation YoY)
1 RMB=19.68 JPY (18.96 JPY in the previous fiscal year, 3.8% yen depreciation YoY)
1 RM=30.71 JPY (28.90 JPY in the previous fiscal year, 6.3% yen depreciation YoY)

(2) Overview of financial position for the fiscal year
(Current assets)
Current assets increased by ¥4,675 million compared to the fiscal year ended September 30, 2022 to ¥70,665
million, due largely to increases in cash and deposits, and accounts receivable - trade by ¥5,348 million and ¥1,073
million, respectively, but a decrease in securities by ¥1,999 million.
(Non-current assets)
Property, plant and equipment increased by ¥1,562 million compared to the fiscal year ended September 30, 2022
to ¥35,314 million, due largely to increases in buildings and structures, net, and construction in progress by ¥449
million and ¥1,049 million, respectively.

2

Intangible assets decreased by ¥570 million compared to the fiscal year ended September 30, 2022 to ¥19,624
million, mainly due to respective decreases of ¥755 million in goodwill and ¥320 million in customer relationshipdue to the progress of amortization, despite a total increase of ¥511 million in software and software in progressincluded in other.
Investments and other assets decreased by ¥94 million compared to the fiscal year ended September 30, 2022 to¥13,521 million due mainly to sale of investment securities.
(Current liabilities)
Current liabilities decreased by ¥1,202 million compared to the fiscal year ended September 30, 2022 to ¥12,129
million, due largely to decreases in accounts payable - trade, and income taxes payable by ¥786 million and ¥874
million, respectively.
(Non-current liabilities)
Non-current liabilities increased by ¥1,473 million compared to the fiscal year ended September 30, 2022 to¥10,677 million, due largely to increases in deferred tax liabilities, and long-term lease liabilities included in otherby ¥253 million and ¥1,107 million, respectively.
(Net assets)
Total net assets increased by ¥5,301 million compared to the fiscal year ended September 30, 2022 to ¥116,319
million, due largely to increases in retained earnings and foreign currency translation adjustment by ¥4,120 millionand ¥1,253 million, respectively, despite a decrease in valuation difference on available-for-sale securities by ¥103
million.
1 USD=149.58 JPY (144.81 JPY at the end of the previous fiscal year, 3.3% yen depreciation YoY)
1 RMB=20.46 JPY (20.37 JPY at the end of the previous fiscal year, 0.4% yen depreciation YoY)
1 RM=31.88 JPY (31.24 JPY at the end of the previous fiscal year, 2.0% yen depreciation YoY)

(3) Overview of cash flows for the fiscal year
Cash and cash equivalents (“cash”) in the fiscal year ended September 30, 2023 increased by ¥2,531 million (anincrease by ¥8,562 million in the fiscal year ended September 30, 2022) compared to September 30, 2022 to¥29,957 million.
The respective cash flow positions for the fiscal year ended September 30, 2023, and the factors thereof are as
follows.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥8,012 million (compared with ¥8,001 million provided for theprevious fiscal year). The main factors were income taxes paid of ¥3,226 million, and loss (gain) on sale andvaluation of investment securities of ¥1,203 million, and an increase in trade receivables of ¥1,042 million while
there were profit before income taxes of ¥9,322 million and depreciation of ¥3,700 million.
(Cash flows from investing activities)
Net cash used in investing activities was ¥3,092 million (compared with ¥1,208 million provided for the previous
fiscal year). The main factors were payments into time deposits of ¥2,283 million and proceeds from withdrawal oftime deposits of ¥1,511 million, and purchase of property, plant and equipment of ¥2,805 million and proceedsfrom sale of investment securities of ¥1,270 million.
(Cash flows from financing activities)
Net cash used in financing activities was ¥2,657 million (compared with ¥2,721 million used for the previous fiscal
year). The main factor was dividends paid of ¥2,552 million.

3

(Reference) Trends in cash flow indicators
Fiscal year ended
September 30,
2020

Fiscal year ended
September 30,
2021

Fiscal year ended
September 30,
2022

Fiscal year ended
September 30,
2023

Equity ratio (%)

81.1

81.1

82.9

83.4

Market value equity ratio (%)

77.3

90.7

92.4

90.2

Ratio of cash flow to interest-bearing debt (%)

1.63

3.31

3.86

18.5

2,059.7

1,109.2

1,826.6

1,153.2

Interest coverage ratio (times)
Equity ratio
Market value equity ratio
Ratio of cash flow to interest-bearing debt
Interest coverage ratio
Notes:

1.
2.
3.
4.

:
:
:
:

Equity / Total assets
Market capitalization / Total assets
Interest-bearing debt / Cash flow
Cash flow / Interest payments

All indicators are calculated using consolidated financial data.
Market capitalization is based on number of shares issued excluding treasury shares.
Operating cash flow is used for cash flow.
Interest-bearing debt includes all liabilities on the consolidated balance sheets on which interest is being paid. Interest
payments are equal to interest paid as stated in the consolidated statements of cash flows.

(4) Future outlook
The outlook for the Japanese economy is expected to remain uncertain fueled by concerns regarding the impact on
economic activities in Japan and overseas due to trends in international affairs, soaring raw material and resource
prices, significant fluctuations in exchange rates, rising commodity prices and other factors, despite expectations
for an economic recovery as social and economic activities normalize.
The flavor and fragrance industry is also anticipated to remain in a severe situation due to further intensifying
competition among companies for market share, increasing demand for quality assurance, and other factors.
Under this situation, with the declared commitment to building on a solid foundation of technology, the Group willconduct distinctive and differentiated product development by further improving research and technology
development capabilities, and strive to reduce cost through an increase in productivity and promotion of
streamlining of all aspects of operations.
Moreover, in order to seek future growth of the Group, it is essential to further strengthen the global expansion
while building a resilient organization that can flexibly respond to the changes in the business environment andunforeseen circumstances and working to increase the share in the Japanese market where maturation isprogressing in step with the falling birthrate and the aging population. The Group will efficiently invest managerial
resources into the USA as our priority region as well as the Asian region, centering on China and Southeast Asia, toaccurately capture the growth potential of the markets, consumer palatability, etc. and plan and promote a businessstrategy in line with changes in the business environment. In addition, the Group will implement investments toachieve sustainable growth into the future, aiming to enhance the business performance in overseas markets.
The Group plans to achieve consolidated net sales at ¥66,500 million (up 2.5% year on year), operating profit at¥8,300 million (up 10.6% year on year), ordinary profit at ¥8,800 million (up 7.5% year on year), and profit
attributable to owners of parent at ¥6,750 million (up 1.2% year on year) for the fiscal year ending September 30,
2024.

(5) Basic policy on profit distribution and dividends for the fiscal year and next fiscal year
The Company has the basic policy of paying dividends of surplus twice a year, interim dividend and year-end
dividend, targeting the payout ratio of 35% on a consolidated basis, to return profit to shareholders based on its
business performance, while securing internal reserves necessary for further strengthening of the Group’s
management base and future business expansion.

4

The Company stipulates in the Articles of Incorporation that dividends of surplus, etc. shall be determined by aresolution of the Board of Directors in accordance with the provision of Article 459, paragraph (1) of theCompanies Act, and the Board of Directors is the decision-making body for dividends of surplus.
With regard to the dividend for the fiscal year ended September 30, 2023, the Company decided to pay an annual
dividend of ¥61 per share (of which, interim dividend of ¥30). As a result, the payout ratio on a consolidated basis
for the fiscal year ended September 30, 2023 is 37.6%.
Internal reserves will be used for capital expenditures and effective investments to implement the globalization
strategy.
Dividends of surplus for the fiscal year are as follows.
Date of resolution

Total amount of dividends (Millionsof yen)Dividends per share (Yen)

Resolution at a Board of Directors meeting held on
May 12, 2023

1,234

30

Resolution at a Board of Directors meeting held on
November 10, 2023

1,275

31

With regard to the dividend for the next fiscal year, the Company plans to pay an annual dividend of ¥62 per share (of which, interim
dividend of ¥31).

5

2. Basic concept regarding selection of accounting standards
The Group plans to continue using the Japanese GAAP to prepare its consolidated financial statements for the time
being, as they facilitate comparison with previous consolidated financial statements and with other companies. The
Group’s policy on applying the International Financial Reporting Standards (IFRS) is to take action as appropriate
based on considerations of various conditions in Japan and overseas.

6

3. Consolidated financial statements and significant notes thereto(1) Consolidated balance sheets(Millions of yen)

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Customer relationship
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

7

As of September 30, 2022

As of September 30, 2023

20,351
2,444
16,277
8,999
7,750
78
9,013
1,099
(26)
65,98925,6992,512
17,351
7,000
8,045
115
8,689
1,273
(22)
70,66545,747(26,154)
19,59337,501(32,595)
4,905
8,380
(7,220)
1,159
7,396
696
33,75247,337(27,294)
20,042
37,772(32,875)
4,897
8,736
(7,539)
1,197
7,430
1,746
35,314

6,815
11,877
1,502
20,194

6,060
11,557
2,007
19,624

12,589
619
18
420
(30)
13,616
67,563
133,553

12,414
697
18
416
(24)
13,521
68,460139,125

(Millions of yen)

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
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

8

As of September 30, 2022

As of September 30, 2023

6,211
1,694
1,632

5,425
819
1,630

74

70

3,718
13,331

4,184
12,129

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

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

5,364
7,513
81,898(2,555)92,2205,364
7,513
86,019(2,556)
96,341

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

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

(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
September 30, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Packing and transportation costs
Salaries and allowances
Provision for bonuses
Provision for bonuses for directors (and other officers)
Retirement benefit expenses
Welfare expenses
Depreciation
Amortization of goodwill
Other
Total 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 - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

9

Fiscal year ended
September 30, 2023

62,39836,77625,62264,874
39,18525,689

1,261
7,119
1,046
74
574
1,474
1,423
824
3,771
17,570
8,051

1,240
7,369
1,040
70
614
1,541
1,578
912
3,814
18,181
7,507

163
256
518
174
1,112

204
269
85
147
706

7
80
88
9,075

7
22
29
8,185

2,230
2,230

1,203
1,203

38
38
11,267
3,099
107
3,207
8,060
53
8,007

65
65
9,322
2,397
252
2,650
6,671
–
6,671

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

10

Fiscal year ended
September 30, 2023

8,060

6,671

(3,615)
10,24622
6,653
14,713

(103)
1,253
(24)
1,126
7,798

14,660

7,798

53

–

(3) Consolidated statements of changes in equity
Fiscal year ended September 30, 2022 (from October 1, 2021 to September 30, 2022)(Millions of yen)
Shareholders’ equity
Share capital

Capital surplus

5,364

7,305

Balance at beginning of period

Retained earnings
76,107

Cumulative effects of changes
in accounting policies

Treasury shares(2,630)(1)

Restated balance

5,364

7,305

76,106

Total shareholders’equity86,147(1)(2,630)86,146

Changes during period
Change in scope of
consolidation

334

334

Dividends of surplus(2,549)(2,549)Profit attributable to owners ofparent

8,007

8,007

Purchase of treasury shares
Disposal of treasury shares

1

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity

(0)

(0)

75

76

206

206
–

Total changes during period
Balance at end of period

–

207

5,792

74

6,074

5,364

7,513

81,898(2,555)92,220Share acquisitionrightsTotal net assets

250

98,301

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

10,272

1,852

Total
Remeasurements accumulatedof definedotherbenefit plans comprehensive
income(221)

11,903Cumulative effects of changes
in accounting policies
Restated balance(1)
10,272

1,852

(221)

11,903250

98,299Changes during period
Change in scope of
consolidation

334

Dividends of surplus(2,549)Profit attributable to owners ofparent

8,007

Purchase of treasury shares(0)

Disposal of treasury shares

76

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity

206(3,615)

10,246

22

6,653

(10)

6,642

Total changes during period(3,615)

10,246

22

6,653

(10)

12,717

Balance at end of period

6,657

12,098(199)

18,556239

111,017

11

Fiscal year ended September 30, 2023 (from October 1, 2022 to September 30, 2023)(Millions of yen)
Shareholders’ equity
Share capital

Capital surplus

5,364

7,513

Balance at beginning of period

Retained earnings
81,898Treasury shares(2,555)

Cumulative effects of changes
in accounting policies

Total shareholders’equity92,220–

Restated balance

5,364

7,513

81,898(2,555)92,220Changes during period
Change in scope of
consolidation–

Dividends of surplus(2,551)(2,551)

Profit attributable to owners ofparent

6,671

6,671

Purchase of treasury shares(0)

Disposal of treasury shares(0)–Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity––

Total changes during period–

Balance at end of period

–

5,364

7,513

4,120

(0)

4,120

86,019(2,556)

96,341

Share acquisitionrightsTotal net assets

239

111,017

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

6,657

12,098

Total
Remeasurements accumulatedof definedotherbenefit plans comprehensive
income(199)

18,556

Cumulative effects of changes
in accounting policies
Restated balance

–
6,657

12,098(199)

18,556239

111,017

Changes during period
Change in scope of
consolidation–

Dividends of surplus(2,551)

Profit attributable to owners ofparent

6,671

Purchase of treasury shares(0)

Disposal of treasury shares–

Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity

–
(103)

1,253

(24)

1,126

55

1,181

Total changes during period

(103)

1,253

(24)

1,126

55

5,301

Balance at end of period

6,554

13,352(223)

19,682

295

116,31912

(4) Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
September 30, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in long-term accounts payable other
Share-based payment expenses
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale of property, plant and equipment
Loss on abandonment of non-current assets
Loss (gain) on sale and valuation of investment
securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for retirement of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Net cash provided by (used in) investing activities

13

Fiscal year ended
September 30, 2023

11,267
3,406
824

9,322
3,700
912

(417)

(17)

65
(47)

55
(9)

14

(4)

(20)
154
3
(420)
7
(308)
7
38

(9)
38
(0)
(474)
7
(35)
(2)
65

(2,230)(1,203)(401)(1,795)
574
(67)
145
10,801433(4)(3,228)8,001(1,042)
67
(818)
(131)
419
10,838408(6)(3,226)
8,012(1,156)
3,934(3,602)13(2,283)1,511(2,805)
2

(16)

(40)

(523)
(41)
2,599
1,208

(703)
(44)
1,270
(3,092)

(Millions of yen)
Fiscal year ended
September 30, 2022
Cash flows from financing activities
Purchase of treasury shares
Proceeds from sale of treasury shares
Repayments of lease liabilities
Dividends paid
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period

14

Fiscal year ended
September 30, 2023

(0)
0
(103)
(2,548)

(0)
–
(104)
(2,552)(68)–(2,721)(2,657)

1,559

268

8,047
18,863

2,531
27,425515–

27,42529,957

(5) Notes to consolidated financial statements(Uncertainties of entity’s ability to continue as going concern)
Not applicable.
(Changes in accounting policies)(Application of ASU 2016-02 “Leases”)
Overseas subsidiaries applying the U.S. Generally Accepted Accounting Principles (GAAP) have applied the
Accounting Standards Update (ASU) 2016-02 “Leases” (issued on February 25, 2016; “ASU 2016-02”) from theend of the current fiscal year.
Due to the application of ASU 2016-02, lessees, in principle, recognize assets and liabilities for all leases. As an
accepted transitional measure for when applying this accounting standard, the Company adopted a method ofrecognizing cumulative effects of the application of this accounting standard on the date of its initial application.
There is no effect on the consolidated financial statements for the current fiscal year.
(Segment information, etc.)[Segment information]
1. Overview of reportable segments
The reportable segments of the Group are components of the Group for which discrete financial information isavailable and regularly reviewed by the Board of Directors of the Company to make decisions about allocation ofmanagerial resources and to assess their performance.
The Group manufactures and sells various fragrances and flavors. Local corporations in China, Malaysia, and the
USA are in charge of their manufacturing and sales, and local corporations in Indonesia, Thailand, and Taiwan are
in charge of their sales. The Company is responsible for all other countries and Japan. The local corporations are
independent operation units, and based on the global strategy formulated by the Company, they draft a strategicplan for the respective region and carry out business activities. Accordingly, the Group consists of segments by thelocation of each company that is based on manufacturing and sales structures, and there are three reporting
segments, Japan, Asia, and the USA.
2. Calculation method of net sales, profit or loss, assets, and other items for each reportable segment
The methods of accounting for reporting segments are in accordance with the accounting policies adopted toprepare the consolidated financial statements.
Profit of each reportable segment is an amount based on operating profit. Inter-segment sales or transfers are basedon current market prices.

15

3. Information on net sales, profit or loss, assets, and other items for each reportable segment and information on
disaggregation of revenue
Fiscal year ended September 30, 2022 (from October 1, 2021 to September 30, 2022)
Reportable segment

Japan

Asia

USA

Total

(Millions of yen)Amountrecorded on
Adjustment
the(Note 1)
consolidated(Note 2)
financialstatements(Note 3)

Net sales
Flavor and fragrance business(Note 4)36,74813,501

12,14862,398–62,398

Revenue from contracts withcustomers

36,74813,501

12,14862,398–62,398

Sales to external customers
Inter-segment sales or transfers

36,7482,434

13,501
196

12,148
118

62,3982,749–(2,749)62,398–

Total

39,183

13,697

12,267

65,147(2,749)62,398Segment profit

5,164

2,431

511

8,107

(55)

8,051

Segment assets

108,376

25,66632,045

166,088(32,535)

133,553

1,722
41
2

716
161
6

967
0
10

3,406
204
19

–
(41)
(11)

3,406
163
7

1,636

651

2,017

4,306

–

4,306

Other items
Depreciation
Interest income
Interest expenses
Increase in property, plant andequipment and intangible assets
Notes:

1.

The adjustments on segment profit of negative ¥55 million include ¥80 million of inter-segment transactions, negative ¥131
million of adjustments for inventories related to inter-segment transactions, and negative ¥3 million for others.
2. The adjustments for segment assets of negative ¥32,535 million include negative ¥32,238 million of adjustments for intersegment transaction and corporate assets, and negative ¥296 million of inventories related to inter-segment transactions, and¥0 million for others.
3. Segment profit is adjusted to operating profit on the consolidated financial statements.
4. 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.

16

Fiscal year ended September 30, 2023 (from October 1, 2022 to September 30, 2023)(Millions of yen)Amountrecorded on
Adjustment
the(Note 1)
consolidated(Note 2)
financialstatements(Note 3)

Reportable segment

Japan

Net sales
Flavor and fragrance business(Note 4)

Asia

USA

Total

37,243

14,92012,71064,874–64,874

Revenue from contracts withcustomers

37,243

14,92012,71064,874–64,874

Sales to external customers
Inter-segment sales or transfers

37,243
2,475

14,920156

12,710151

64,874
2,783–(2,783)64,874–

Total

39,71815,077

12,861

67,658(2,783)64,874

4,518

3,094

(166)

7,446

60

7,507

110,562

27,98732,792

171,342(32,216)

139,125

1,694
39
1

755
169
4

1,249
32
36

3,700
241
43

–
(36)
(36)

3,700
204
7

2,923

790

542

4,256

–

4,256

Segment profit or loss
Segment assets
Other items
Depreciation
Interest income
Interest expenses
Increase in property, plant andequipment and intangible assets
Notes:

1.

The adjustments on segment profit or loss of ¥60 million include ¥77 million of inter-segment transactions, negative ¥17
million of adjustments for inventories related to inter-segment transactions, and negative ¥0 million for others.
2. The adjustments for segment assets of negative ¥32,216 million include negative ¥31,903 million of adjustments for intersegment transaction and corporate assets, and negative ¥313 million of inventories related to inter-segment transactions, and¥0 million for others.
3. Segment profit is adjusted to operating profit on the consolidated financial statements.
4. 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.

[Related information]
Fiscal year ended September 30, 2022 (from October 1, 2021 to September 30, 2022)
1. Information for each product or service(Millions of yen)Fragrance

FlavorSales to external customers

8,039

Total
54,35962,398

2. Information for each region(1) Net sales(Millions of yen)
Japan

China
33,787

Note:

Asia
9,785

USA
6,703

Others
10,821

Net sales are classified by country or region based on customers’ location.

17

Total
1,300

62,398

(2) Property, plant and equipment(Millions of yen)
Japan

China
18,474

Note:

Asia

USA

7,246

1,118

Others

Total

6,911

–

33,752

Property, plant and equipment are classified by country or region based on their location.

3. Information for each of main customers
Not applicable.
Fiscal year ended September 30, 2023 (from October 1, 2022 to September 30, 2023)
1. Information for each product or service(Millions of yen)Fragrance

FlavorSales to external customers

7,799

Total
57,07564,874

2. Information for each region(1) Net sales(Millions of yen)
Japan

China
34,676

Note:

Asia
10,629USA
6,795

Others
11,519

Total
1,253

64,874

Net sales are classified by country or region based on customers’ location.

(2) Property, plant and equipment

(M
Japan

China
19,252

Note:

Asia
7,367

USA
1,163

Others7,530

Property, plant and equipment are classified by country or region based on their location.

3. Information for each of main customers
Not applicable.
[Information on impairment losses on non-current assets for each reportable segment]
Fiscal year ended September 30, 2022 (from October 1, 2021 to September 30, 2022)
Not applicable.
Fiscal year ended September 30, 2023 (from October 1, 2022 to September 30, 2023)
Not applicable.

18

Total
–

35,314

[Information on amortization and unamortized balance of goodwill for each reportable segment]
Fiscal year ended September 30, 2022 (from October 1, 2021 to September 30, 2022)(Millions of yen)
Japan

Asia

USA

OthersTotal

Amortization in thefiscal year

–

152

671

–

824

Unamortized balanceat end of the fiscal
year

–

371

6,443

–

6,815

Fiscal year ended September 30, 2023 (from October 1, 2022 to September 30, 2023)(Millions of yen)
Japan

Asia

USA

OthersTotal

Amortization in thefiscal year

–

162

749

–

912

Unamortized balanceat end of the fiscal
year

–

210

5,849

–

6,060

[Information about gain on bargain purchase for each reportable segment]
Fiscal year ended September 30, 2022 (from October 1, 2021 to September 30, 2022)
Not applicable.
Fiscal year ended September 30, 2023 (from October 1, 2022 to September 30, 2023)
Not applicable.
(Per share information)(Yen)
Fiscal year ended September 30, 2022 (from October 1, 2021 toSeptember 30, 2022)

Fiscal year ended September 30, 2023 (from October 1, 2022 toSeptember 30, 2023)

Net assets per share

2,692.34

Net assets per share

2,819.86

Earnings per share

194.65

Earnings per share

162.16

Diluted earnings per share

193.97

Diluted earnings per share

161.54

Note:

Basis for calculation of earnings per share and diluted earnings per share is as follows.

19

Fiscal year ended September 30,
2022 (from October 1, 2021 toSeptember 30, 2022)

Fiscal year ended September 30,
2023 (from October 1, 2022 toSeptember 30, 2023)

8,007

6,671

Amounts not attributable to common shareholders(Millions of yen)––

Profit attributable to owners of parent pertaining tocommon shares (Millions of yen)

8,007

6,671

41,134,938

41,145,353––

Increase in the number of common shares (Shares)

144,390

156,962[Of the above, share acquisition rights (Shares)][144,390][156,962]

Earnings per share
Profit attributable to owners of parent (Millions of yen)

Average number of shares during the period (Shares)
Diluted earnings per share
Adjustments to profit attributable to owners of parent(Millions of yen)

(Significant subsequent event)Not applicable.

20