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

Summary of Consolidated Financial Results
for the Three Months Ended December 31, 2022
(Based on Japanese GAAP)
February 3, 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

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

February 14, 2023–

Preparation of supplementary material on quarterly financial results:
Holding of quarterly financial results meeting:

NoNo

TEL 03-3241-1151(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the three months ended December 31, 2022 (from October 1, 2022 to December 31, 2022)(1) Consolidated operating results (cumulative)
Net sales
Three months ended December 31,2022
Three months ended December 31,2021
Note: Comprehensive income

Operating profit

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

Millions of yen%

Millions of yen%

15,515

8.5

1,532

(5.1)

1,435

(18.3)

1,041(14.5)

14,295

17.5

1,614

60.0

1,758

64.5

1,217(23.2)

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

Three months ended December 31, 2021

¥1,235 million [(21.0)%]

Earnings per share
Three months ended December 31,2022
Three months ended December 31,2021

Diluted earnings per share
YenYen

25.30

25.22

29.60

29.50

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

Net assets

Millions of yen
127,728
133,553

As of December 31, 2022
As of September 30, 2022

Equity ratio

Millions of yen
107,214111,017

%
83.7
82.9

¥106,958 million¥110,777 million

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

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
29.00

Yen–Yen
32.00

Yen
61.00

–31.0061.00

Year ended September 30, 2022
Year ending September 30, 2023
Year ending September 30, 2023
30.00
(Forecast)
Note: Revision of cash dividend forecast most recently announced: NoTotal

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 toNet 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 three months ended December 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
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:

NoNo

Restatement of prior period financial statements:

No(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2022

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 December 31, 2022

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)
Three months ended December 31, 2022

41,145,380 shares Three months ended December 31, 2021

41,111,163 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
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 ofconsolidated financial results forecast and other forward-looking statements” on page 3 of the Attached Material.

Attached Material Index
1. Qualitative information on financial results for the period .......................................................................................... 2(1) Explanation of operating results ............................................................................................................................ 2(2) Explanation of financial position ........................................................................................................................... 3(3) Explanation of consolidated financial results forecast and other forward-looking statements .............................. 3
2. Quarterly consolidated financial statements and significant notes thereto .................................................................. 4(1) Consolidated balance sheets .................................................................................................................................. 4(2) Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)........................................................................................................................................................... 6Consolidated statements of income (cumulative) .................................................................................................. 6Consolidated 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.) ................................................................................................................................... 91

1. Qualitative information on financial results for the period(1) Explanation of operating results
The Japanese economy in the three months ended December 31, 2022 continued to present an uncertain outlook,fueled by concerns regarding the prolonged Ukraine situation, soaring raw material prices and resources prices, andthe impact on economic activities in Japan and overseas from rising commodity prices, despite expectations for
economic recovery with the progressing move toward the normalization of social and economic activities as wellas eased behavioral restrictions associated with the novel coronavirus disease (COVID-19).
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 three months ended December 31, 2022, net sales increased by ¥1,220 million (8.5%) year on year,
amounting to ¥15,515 million. The Company’s non-consolidated net sales increased by 2.8% year on year. As fornet sales of major overseas consolidated subsidiaries, net sales of subsidiaries in the USA increased by 17.3% year
on year (down 5.8% on a local currency basis) due to the impact of the weaker Japanese yen, those of subsidiaries
in China increased by 17.0% year on year (up 4.7% on a local currency basis), and those of subsidiaries inMalaysia increased by 47.9% year on year (up 29.8% on a local currency basis).
By division, net sales of the Flavor Division increased by 8.8% year on year, amounting to ¥13,297 million, due
mainly to increased net sales from the Company’s non-consolidated financial results, our U.S. subsidiaries, andsubsidiaries in China.
Net sales of the Fragrance Division increased by 7.0% year on year, amounting to ¥2,217 million due mainly to anincrease in sales of subsidiaries in China.
As for profit, operating profit decreased by ¥82 million (5.1%) year on year to ¥1,532 million due largely to thedeterioration of the ratio of cost to sales in association with an increase in raw material cost and an increase inselling, general and administrative expenses. Ordinary profit decreased by ¥322 million (18.3%) year on year to¥1,435 million due largely to a decrease in operating profit and the recording of foreign exchange losses of ¥189
million (the recording of foreign exchange gains of ¥64 million in the same period of the previous fiscal year). As aresult, profit attributable to owners of parent decreased by ¥176 million (14.5%) year on year to ¥1,041 million.
Furthermore, the yen exchange rates for major currencies (average rate for the period) applied for conversions inthe statements of income for the three months ended December 31, 2022 are as follows.
1 USD=141.59 JPY (113.71 JPY in the same period of the previous fiscal year, 24.5% yen depreciation YoY)
1 RMB=19.87 JPY (17.78 JPY in the same period of the previous fiscal year, 11.8% yen depreciation YoY)
1 RM=30.98 JPY (27.18 JPY in the same period of the previous fiscal year, 14.0% yen depreciation YoY)
Operating results by segment are as follows. Furthermore, operating results by segment include inter-segment
sales, etc.
(Japan)Net sales were ¥9,518 million (up 2.8% year on year), and segment profit was ¥1,069 million (down 0.2% year onyear).
(Asia)Net sales were ¥3,807 million (up 20.1% year on year), and segment profit was ¥730 million (up 25.8% year onyear).
(USA)
Net sales were ¥2,910 million (up 18.4% year on year), and segment loss was ¥294 million (segment loss of ¥3
million in the same period of the previous fiscal year).

2(2) Explanation of financial position(Current assets)
While securities increased by ¥999 million compared to the end of the fiscal year ended September 30, 2022,
current assets decreased by ¥2,936 million compared to the end of the fiscal year ended September 30, 2022 to¥63,053 million due largely to decreases in cash and deposits, notes and accounts receivable - trade, and raw
materials and supplies by ¥3,407 million, ¥233 million, and ¥329 million, respectively.
(Non-current assets)
While investment securities increased by ¥462 million compared to the end of the fiscal year ended September 30,
2022, non-current assets decreased by ¥2,888 million compared to the end of the fiscal year ended September 30,
2022 to ¥64,674 million due largely to progress in amortization resulting in decreases in property, plant andequipment, goodwill, and customer relationship, included in intangible assets by ¥1,430 million, ¥771 million, and¥1,151 million, respectively.
(Current liabilities)
Current liabilities decreased by ¥2,171 million compared to the end of the fiscal year ended September 30, 2022 to¥11,160 million due largely to decreases in income taxes payable and provision for bonuses by ¥1,052 million and¥1,147 million, respectively, compared to the end of the fiscal year ended September 30, 2022.
(Non-current liabilities)
Non-current liabilities increased by ¥149 million to ¥9,353 million due largely to an increase in deferred tax
liabilities by ¥120 million compared to the end of the fiscal year ended September 30, 2022.
(Net assets)
Total net assets decreased by ¥3,802 million to ¥107,214 million due largely to a decrease in foreign currencytranslation adjustment by ¥3,876 million compared to the end of the fiscal year ended September 30, 2022.

(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

As of December 31, 2022

20,351
18,722
8,999
7,750
78
9,013
1,099
(26)
65,98916,94418,488
9,999
7,829
20
8,683
1,111(24)63,053

19,593
14,15833,752

18,571
13,75032,321

6,815
13,37920,194

6,044
12,293
18,337

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

13,05118975(29)
14,01564,674
127,728

6,211
1,694
1,632

5,815
641
484

74

–

3,718
13,331

4,218
11,160

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

1,222
7,483
69
207
369
9,353
20,513

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

(Millions of yen)
As of September 30, 2022

As of December 31, 2022

5,364
7,513
81,898(2,555)92,2205,364
7,513
81,622(2,555)91,944

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

6,978
8,222
(187)
15,013
256
107,214
127,728

Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets5(2) Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Three months endedDecember 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
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary losses
Loss on abandonment of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent6

Three months ended
December 31, 2022

14,295
8,455
5,839
4,224
1,614

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

38
24
64
22149

4326–
34
104

1–
46
1,758

1189
9
201
1,435

4
4
1,754
521
1,232
15
1,217

10
10
1,425
383
1,041
–
1,041

Consolidated statements of comprehensive income (cumulative)(Millions of yen)Three months ended
December 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 incomeComprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

7

Three months ended
December 31, 2022

1,232

1,041

(1,467)
1,457
12
2
1,235

320
(3,876)
12(3,543)(2,502)

1,216(2,502)18–

(3) Notes to quarterly consolidated financial statements(Uncertainties of entity’s ability to continue as going concern)
Not applicable.

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

(Application of special accounting methods for preparing quarterly consolidated financial statements)(Calculation of income tax expense)
Tax expense is calculated by multiplying the profit before income taxes by the reasonably estimated effective tax rates
after the application of tax effect accounting to the profit before income taxes for the fiscal year including the firstquarter ended December 31, 2022.

8

(Segment information, etc.)[Segment information]
I. Three months ended December 31, 2021 (from October 1, 2021 to December 31, 2021)
1. Information on net sales and profit or loss for each reportable segment and information on disaggregation ofrevenue(Millions of yen)
Reportable segment
JapanAsiaUSA

Total

Adjustment(Note 1)

Consolidated(Note 2)

Net sales
Flavor and Fragrance business(Note 3)
Revenue from contracts withcustomers
Sales to external customers
Inter-segment sales or transfers
Total
Segment profit or loss
Notes:

8,732

3,128

2,434

14,295–

14,295

8,732

3,128

2,434

14,295–

14,295

8,732
525

3,128
42

2,434
23

14,295
590

–
(590)

14,295–

9,257

3,170

2,458

14,885(590)

14,295

1,071

580(3)1,649

(34)

1,614

1.

The adjustments on segment profit of negative ¥34 million include ¥25 million of inter-segment transactions, negative ¥56
million of adjustments for inventories, and negative ¥2 million for others.
2. Segment profit or loss is adjusted to operating profit in the consolidated statements of income (cumulative).
3 The Flavor and fragrance business is composed mainly of the manufacturing and sales of flavors and fragrances, and the net
sales of the Flavor and fragrance business are composed mainly of revenue from goods transferred to customers at a specificpoint in time.

II. Three months ended December 31, 2022 (from October 1, 2022 to December 31, 2022)
1. Information on net sales and profit or loss for each reportable segment and information on disaggregation ofrevenue(Millions of yen)
Reportable segment
Japan

AsiaUSA

Total

Adjustment(Note 1)

Consolidated(Note 2)

Net sales
Flavor and Fragrance business(Note 3)
Revenue from contracts withcustomers
Sales to external customers
Inter-segment sales or transfers
Total
Segment profit or loss
Notes:

8,905

3,754

2,855

15,515–

15,515

8,905

3,754

2,85515,515–

15,515

8,905
613

3,754
53

2,855
55

15,515
721

–
(721)

15,515
–

9,518

3,807

2,910

16,236(721)

15,515

1,069

730

(294)

1,505

26

1,532

1.

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

9