CSR Policy 6: Innovation
We will contribute to resolving social issues through the flavor and fragrance
business.

Basic approach
The Company is working to find unique flavors and fragrances by developing flavors and fragrances andcreating new flavor components through technologies for creating fragrance and creating taste, analysis,synthesis, and ingredient development. The Company is also working to streamline and improve theefficiency of manufacturing methods.
With solving social issues as the starting point of our efforts to meet customers’ needs and potential
demand, we develop new products and search for new businesses from various viewpoints, including“responding to health consciousness,” “contributing to foodtech,” “providing health and enrichment,”
and “reducing lifestyle odors (bad smell that comes from daily activities, such as sleeping, walking, andeating).” In this way, we aim to contribute to realizing a rich and healthy life and creating a sustainable
society through flavors and fragrances.
─Contribution to society through the flavor and fragrance business─
Responding to health consciousness

Contributing to foodtech

Providing health and enrichment

Reducing lifestyle odors

Relation with stakeholders
Customers
We provide the ideal flavors and fragrances required by customers by providing high-quality and highvalue-added products.
Examples of customer success cases
We have visualized customers’ issues and established a proposal method to support productdevelopment by integrating marketing data and sensory evaluation data. By using our proprietaryflavor and fragrance visualization tool, we visualize the quality of scents, flavors, and fragrances. We
use these techniques and tools to share issues of customers in order to accurately respond tocustomer requests.
Natural environment
To develop alternatives and reduce the use of food resources that are consumed in large quantities, weare developing flavors, fragrances, and ingredients that help us reduce the use of such resources inprocessed foods without sacrificing consumers’ preferences. In synthetic chemical studies, we aim todevelop environmentally conscious ingredients by continuing to reduce the amount of solvent used andto replace toxic substances while taking into account green chemistry. We contribute to reducing thethickness of PET bottles and saving resources through the development of ingredients that enhance theflavor of natural raw materials and other ingredients that supplement the sensation of carbonation,
which will lead to the protection of biodiversity and food resources.
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Joint research partners, universities, and research institutes
We endeavor to absorb cutting-edge research and improve technologies by sharing knowledge,
exchanging views, etc.

SDGs that we are targeting

Promotion system and governance
The Business Solution Division, which was established in 2020, is strengthening collaboration between
the Sales, Sales Planning, Marketing, and R&D Divisions. Based on strategies developed by the BusinessSolutions Planning Department, we aim to contribute to resolving social challenges and achievesustainable growth by taking an organized approach to provide high-quality and high-value-added
products to customers.
In addition, the R&D Center (Kawasaki city in Kanagawa Prefecture) serves as the backbone of our flavor
and fragrance development. The Flavor R&D Center, Fragrance R&D Center, and Technology R&D Center
pursue research in their respective specialized fields, and collaborate with each other to combine theirachievements, thereby strengthening our research and development capabilities.

Business Solution
Division

Sales Division

Sales Planning Division
BusinessSolutions
Solution
BusinessPlanning
Planning Department
Department

Marketing Division
R&D Division

Opportunities and strategies
Opportunities
 Social challenges to which the Group can contribute with its technology
 Increasing interest and need for creating a sustainable society
 Potential of flavors and fragrances to create new value
Strategies
 Proposal activities using marketing data and AI
 Speedy development: Accurately understanding the requests and latent demand of customers andresponding to them quickly Detailed response to customers
 Response to increased demand for alternative raw materials triggered by climate change
 Maintaining investment in research and development

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Copyright© T. HASEGAWA CO., LTD. All rights reserved Absorbing advanced technologies and knowledge through active exchange of views with universities
and research institutes

Main FY2022 initiatives
Development of an organizational structure
Collaborations between the Sales, Marketing, and R&D Divisions as the Business Solution Division haveadvanced and the speed of responding to customers is accelerating. To achieve customer success, wehave strengthened information sharing with respect to marketing data, technical materials, and research
results, with the aim of further promoting solution sales.
We continue to focus on research and development for increasing sales, and the percentage of researchand development expenditures in FY2022 was 8.0% (consolidated basis).
Product development and proposals
We have established a new proposal method that integrates marketing data with sensory evaluation
data. By promoting the active use of intellectual properties such as sensory evaluation data andstrengthening the linkage between compounding, analysis, applications, and sensory evaluation, weendeavor to develop new unique products.
We continue to promote joint research with universities and research institutes for productdevelopment and to strengthen proposals.
Number of joint research projects: 13 (FY2022 result)Contribution to society Responding to health consciousness──Bringing delicious taste to low-sugar, low-salt, and low-fat foods
We develop ingredients that enhance sweetness, umami, and saltiness in response to the developmentof products by customers in pursuit of “healthy and good taste” and we propose ingredients that add
delicious flavor to food with reduced sugar and salt content. By developing products with an oily texture
and a rich flavor, we provide oily texture to low-calorie and non-oil products, which helps to prevent
excessive calorie intake.
 Contributing to foodtech──Solution for the lack of food resources
As part of the development of flavors to replace depleting food resources, we also offer a flavor series
that can replace savory natural raw materials and alternative blended flavors for citrus essential oils. Inresponse to the shortage of vanilla beans, we partially replace vanilla extract using blended flavors andmaterials created by applying heat reaction technology. We also partially replace milk by combining
blended flavors that we have developed based on aroma analysis with oil and fat emulsions.
For plant-based food, which is effective in reducing the environmental impact, we have Plant React ®, aningredient that adds the flavor and taste of animal products without actually using animals andcontributes to reproducing the distinct flavor.
Koku Jyuwa®, which is generated by using the power of enzyme in natural vegetable fats and oils,
contributes to reducing the raw materials used and protecting natural resources by expanding the richflavors in food.
We also re-examined the quality of products used in food to successfully extend its guarantee period,
leading to the reduction of food waste.
 Providing health and enrichment
──Bringing fragrance to living spaces and developing new technologies for skin care products
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Copyright© T. HASEGAWA CO., LTD. All rights reservedWe develop sustainable fragrance ingredients that effectively provide fragrance to living spaces. We arealso working to develop original liposome, which can be combined with various products, including
milky lotion, cream, skin lotion, and hair care items, at a high level and provides an innovative solution toall kinds of skin problems.
 Reducing lifestyle odors (bad smell that comes from daily activities, such as sleeping, walking, andeating)──Solution for an aging society
As a solution to various unpleasant odors in our daily lives, we research and investigate unpleasant odors
themselves in detail, and use the obtained data to develop fragrances that help reduce or eliminate such
unpleasant odors. In addition to developing masking materials for daily odors to improve the hospitaland nursing care environment, we use near-infrared spectroscopy (NIRS) and develop Swallowing Map™
as part of our efforts to facilitate eating and add good taste to nursing care food.
T. Hasegawa Group’s proprietary technologies
Many of our proprietary technologies are showcased on our website.
Top > Research & Development > Our technology
https://www.t-hasegawa.co.jp/en/research/techniqueSocial action through the flavor and fragrance business
The Company participates in the tree planting and product development programs of the HarumekiFoundation, which was established for the purpose of supporting people with vision impairment. We
have also published a book, “An Illustrated Guide to the Mysteries of Fragrance and Flavor” (Publisher:Kodansha), written by our researchers. The book explains scents, flavors, and fragrances in an easy tounderstand manner. The royalties on the book are donated to food bank activity groups.
Top > Sustainability > Social Contribution
https://www.t-hasegawa.co.jp/en/sustainability/socialPlan for the future
We have set out KPIs for maintaining and improving the ratio of research and development expenses tosales and for continuing open innovations. We are working to strengthen product development andproposals by promoting joint research with universities and research institutes for the continued
development of new technologies, and will continue to improve our organizational structure.

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