Translation
Notice: This document is an excerpt 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, 2018
(Based on Japanese GAAP)
November 9, 2018
Company name:T. HASEGAWA CO., LTD.

Stock exchange listing: Tokyo
Stock code:
4958
Representative:
Inquiries:

URL

http://www.t-hasegawa.co.jp/

President & COO
Director & Executive Vice President

Takao Umino
Minoru Nakamura

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

December 20, 2018
December 21, 2018

Scheduled date to commence dividend payments:
Preparation of supplementary material on financial results:

December 4, 2018
Yes

Holding of financial results meeting:

Yes

TEL

03-3241-1151(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended September 30, 2018 (from October 1, 2017 to September 30, 2018)(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, 2018
49,751
3.6
5,058
(9.8)
5,512
(9.6)
4,100
(4.6)
Year ended September 30, 2017
48,001
0.9
5,606
8.6
6,101
18.1
4,299
18.2
Note: Comprehensive income

Year ended September 30, 2018Year ended September 30, 2017

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
96.43
4.5
4.8
10.2
101.19
5.1
5.8
11.7

Diluted earnings per
share

Yen
96.64
101.35

Year ended September 30, 2018Year ended September 30, 2017

Reference: Investment profit (loss) on equity method¥8,599 million [(3.8)%]¥8,937 million [413.9%]

Year ended September 30, 2018Year ended September 30, 2017¥– million¥– million(2) Consolidated financial position
Total assets
As of September 30, 2018
As of September 30, 2017
Reference: Equity

Net assets

Millions of yen
119,235
109,836

As of September 30, 2018
As of September 30, 2017

Millions of yen
94,58287,528Equity ratio

Net assets per share
%
79.2
79.6

Yen
2,225.19
2,060.94¥94,432 million¥87,438 million(3) Consolidated cash flows

Year ended September 30, 2018Year ended September 30, 2017

Cash flows fromoperating activities
Millions of yen
5,894
4,860

Cash flows frominvesting activities
Millions of yen(3,624)(9,456)

1

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(1,534)
17,221(1,519)16,5112. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

16.00
17.00

–
–

19.00
18.00

35.00
35.00

1,484
1,485

34.5
36.2

1.8
1.6

–

17.00

–

18.00

35.00

Year ended September 30, 2017
Year ended September 30, 2018Year ending September 30, 2019
(Forecast)

33.9

3. Forecast of consolidated financial results for the year ending September 30, 2019 (from October 1, 2018 to September 30, 2019)
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
52,200
4.9
5,500
8.7
5,900
7.0
4,300
4.9
103.394. Notes(1) Changes in significant subsidiaries during the year ended September 30, 2018(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:
Changes in accounting policies due to other reasons:

No
No

Changes in accounting estimates:
Restatement of prior period financial statements:

NoNo(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, 2018

42,708,154 shares As of September 30, 2017

42,708,154 shares

Number of treasury shares at the end of the period
As of September 30, 2018

270,025 shares As of September 30, 2017

281,719 shares

42,435,512 shares Year ended September 30, 2017

42,426,645 shares

Average number of shares during the period
Year ended September 30, 20182

Reference: Summary of non-consolidated financial results
1. Non-consolidated financial results for the year ended September 30, 2018 (from October 1, 2017 to September 30, 2018)(1)Non-consolidated financial results
Percentages indicate year-on-year changes
Net salesYear ended September 30, 2018Year ended September 30, 2017

Millions of yen
36,90736,572

Operating profit% Millions of yen
0.9
3,977
(0.6)
3,868

Earnings per share
Yen
76.54
76.03

Year ended September 30, 2018Year ended September 30, 2017

Ordinary profit
%
2.8
9.6

Millions of yen
4,470
4,363

Profit%2.4
18.6

Millions of yen
3,247
3,225

%
0.7
22.0

Diluted earnings
per share
Yen
76.37
75.91

(2)Non-consolidated financial position
Total assets
As of September 30, 2018
As of September 30, 2017
Reference: Equity

Net assets

Millions of yen
108,291
99,553

Millions of yen
86,24979,636

As of September 30, 2018

¥86,100 million

As of September 30, 2017¥79,545 million

Equity ratio

Net assets per share
%
79.5
79.9

Yen
2,028.85
1,874.91

2. Forecast of non-consolidated financial results for the year ending September 30, 2019 (from October 1, 2018 to September 30, 2019)
Percentages indicate year-on-year changes
Net sales

Full year

Millions of yen
38,000Operating profit% Millions of yen
3.0
4,150

Ordinary profit% Millions of yen
4.4
4,580

Profit% Millions of yen
2.5
3,310

Earnings per share
%
1.9

Yen
79.58

* Financial results reports are exempt from audit 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.

3

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of September 30, 2017

As of September 30, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

10,802
16,89312,121
17,141

Securities
Merchandise and finished goods

5,999
6,530

6,999
7,086

Work in process
Raw materials and supplies

160
6,004

111
7,304

Deferred tax assets
Other

632
1,681

626
980

Allowance for doubtful accounts

(8)

(5)

48,69452,36638,15938,386

Accumulated depreciation(20,205)(21,231)

Buildings and structures, net

17,953

17,155

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles

34,45335,114

Accumulated depreciation(29,715)(30,400)

4,737

4,714

6,561

6,924

Accumulated depreciation(5,329)(5,615)Tools, furniture and fixtures, net

1,232

1,308

7,064

7,081

257

355

31,24530,615

3,885
3,033

3,480
2,901

Machinery, equipment and vehicles, net
Tools, furniture and fixtures

Land
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Customer relationship
Other
Total intangible assets

890

901

7,809

7,283

21,202
24

28,071
25

18
897

21
900

Investments and other assets
Investment securities
Deferred tax assets
Net defined benefit asset
Other
Allowance for doubtful accounts

(57)

(49)

Total investments and other assets

22,08628,970Total non-current assets
Total assets

461,141

66,868109,836

119,235

(Millions of yen)
As of September 30, 2017

As of September 30, 2018

Liabilities
Current liabilities
Notes and accounts payable - trade

5,540

5,280

4
839

0
663

Provision for bonuses
Provision for directors' bonuses

1,264
67

1,299
63

Other

2,818

3,357

Total current liabilities

10,534

10,664Long-term loans payable
Deferred tax liabilities

4
4,012

1
6,097

Net defined benefit liability
Asset retirement obligations

6,631
70

6,826
68

997
56

914
80

11,772

13,98822,307

24,652

Shareholders' equity
Capital stock

5,364

5,364

Capital surplus
Retained earnings

7,292
62,438

7,295
64,917

Treasury shares

(323)

(309)

74,772

77,26812,435468

17,253
261

(237)

(350)

12,665

17,16490

149

87,52894,582

109,836

119,235

Current portion of long-term loans payable
Income taxes payableNon-current liabilities

Long-term accounts payable - other
Other
Total non-current liabilities
Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Total net assets
Total liabilities and net assets

5Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
September 30, 2017

Fiscal year ended
September 30, 2018

Net sales

48,00149,751

Cost of sales

29,24530,619Gross profit

18,756

19,132

810
5,338

910
5,711

Provision for bonuses
Provision for directors' bonuses

838
67

864
63

Retirement benefit expenses
Welfare expenses

481
1,182

485
1,200

Depreciation
Amortization of goodwill

840
208

963
430

Other

3,381

3,442

Total selling, general and administrative expenses

13,14914,073

5,606

5,058

33

62

Dividend income
Foreign exchange gains

260
173

304
–

Other

88

108

Total non-operating income

556

475

Interest expenses
Foreign exchange losses

3
–

0
15

Rent expenses on facilities
Other

43
14

–
5

Total non-operating expenses

62

21

6,101

5,512

Selling, general and administrative expenses
Packing and transportation expenses
Salaries and allowances

Operating profit
Non-operating income
Interest income

Non-operating expenses

Ordinary profit
Extraordinary income
Gain on sales of non-current assets

75–

Gain on sales of investment securities

55

63

Total extraordinary income

131

63

Loss on abandonment of non-current assets

95

54

Total extraordinary losses

95

54

Profit before income taxes

6,137

5,521

Income taxes - current
Income taxes - deferred

1,613
224

1,395
24

Total income taxes

1,837

1,420

Profit

4,299

4,100

Profit attributable to owners of parent

4,299

4,100

Extraordinary losses

6Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

September 30, 2017

September 30, 2018

4,299

4,100

Valuation difference on available-for-sale securities
Foreign currency translation adjustment

2,740
1,835

4,817
(206)

Remeasurements of defined benefit plans, net of tax

61

(112)

4,637

4,498

Comprehensive income

Total other comprehensive income

8,937

8,599

Comprehensive income attributable toComprehensive income attributable to owners of parent

8,937

8,599

–

–

Comprehensive income attributable to non-controllinginterests

7

Consolidated statements of changes in equity
Fiscal year ended September 30, 2017
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

Retained earnings

7,292

59,538

5,364

Total shareholders'equityTreasury shares(322)

71,873

Changes of items during period
Change of scope of
consolidation
Dividends of surplus(1,400)(1,400)

Profit attributable to owners ofparent

4,299

4,299

Purchase of treasury shares

(0)

(0)

Disposal of treasury shares
Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period

–

–

2,899

(0)

2,898

5,364

7,292

62,438(323)

74,772

ShareacquisitionrightsTotal net assets

Accumulated other comprehensive income
Valuationdifference on
available-forsale securities
Balance at beginning of current
period9,695

Foreigncurrencytranslation
adjustment

Total
Remeasurement accumulated
others of defined
benefit plans comprehensive
income(1,367)

(299)

8,028

37

79,939Changes of items during period
Change of scope of
consolidation
Dividends of surplus(1,400)

Profit attributable to owners ofparent4,299

Purchase of treasury shares(0)

Disposal of treasury shares
Net changes of items other thanshareholders' equity

2,740

1,835

61

4,637

52

4,690

Total changes of items during
period

2,740

1,835

61

4,637

52

7,589

Balance at end of current period

12,435468(237)

12,6659087,5288

Fiscal year ended September 30, 2018
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

Retained earnings

7,292

62,438

5,364

Total shareholders'equityTreasury shares(323)

74,772

Changes of items during period
Change of scope of
consolidation

(94)

(94)

Dividends of surplus(1,527)(1,527)

Profit attributable to owners ofparent

4,100

4,100

Purchase of treasury shares
Disposal of treasury shares

3

(0)

(0)

13

17

Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period

–

3

2,479

13

2,495

5,364

7,295

64,917(309)

77,268

ShareacquisitionrightsTotal net assets

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

12,435468

Total
Remeasurement accumulated
others of defined
benefit plans comprehensive
income(237)

12,6659087,528Changes of items during period
Change of scope of
consolidation(94)

Dividends of surplus(1,527)

Profit attributable to owners ofparent4,100

Purchase of treasury shares(0)

Disposal of treasury shares

17

Net changes of items other thanshareholders' equity

4,817

(206)

(112)

4,498

58

4,557

Total changes of items during
period

4,817

(206)

(112)

4,498

58

7,053

Balance at end of current period

17,253261(350)

17,164

149

94,5829

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

September 30, 2017

September 30, 2018

6,137

5,521

2,842
208

2,986
430

Increase (decrease) in long-term accounts payable - other
Share-based compensation expenses

(29)
52

(83)
76

Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' bonuses

125
8

37
(3)

Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in net defined benefit liability

4
130

(10)
32

Decrease (increase) in net defined benefit asset
Interest and dividend income

(15)
(294)

(3)
(366)

Interest expenses
Foreign exchange losses (gains)

3
(80)

0
(1)

Loss on abandonment of non-current assets
Loss (gain) on sales of intangible assets

95
(75)

54
–

Loss (gain) on sales and valuation of investment securities
Decrease (increase) in notes and accounts receivable - trade(56)(1,114)

(63)
(280)

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade

(948)
(270)

(1,783)
548

Increase (decrease) in accrued consumption taxes
Other, net

112
(620)

(47)
73

Subtotal

6,213

7,117

292
(4)

346
(0)

Income taxes paid

(1,642)(1,569)Net cash provided by (used in) operating activities

4,860

5,894

(289)
33

(2,088)445(3,156)
4(1,816)
14

Payments for retirement of property, plant and equipment
Purchase of intangible assets

(130)
(64)

(44)
(148)

Proceeds from sales of intangible assets
Purchase of investment securities

284
(30)

–
(31)

Proceeds from sales of investment securities
Payments of short-term loans receivable

78
(25)

90
–

Purchase of shares of subsidiaries
Payments for asset retirement obligations(6,160)
–

(41)
(2)

Net cash provided by (used in) investing activities(9,456)(3,624)

Depreciation
Amortization of goodwill

Interest and dividend income received
Interest expenses paid

Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment

10

(Millions of yen)
Fiscal year ended

Fiscal year ended

September 30, 2017

September 30, 2018

Cash flows from financing activities
Repayments of long-term loans payable

(118)

(7)

Purchase of treasury shares
Proceeds from sales of treasury shares

(0)
–

(0)
0

Cash dividends paid

(1,399)(1,526)

Net cash provided by (used in) financing activities(1,519)(1,534)

Effect of exchange rate change on cash and cash equivalents

314

(51)

Net increase (decrease) in cash and cash equivalents(5,802)

683

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated

22,313

16,511–

25

16,511

17,221

subsidiary
Cash and cash equivalents at end of period11Segment Information
1. Outline of reportable segments
The T.Hasegawa group’s reportable segments are components of the group for which separate financial information isavailable. These segments are periodically evaluated by the Board of Directors when deciding how to allocate
management resources and when assessing performance.
The T.Hasegawa group primarily engages in the manufacture and sales of fragrance and flavor products. Japan is incharge of the area including domestic market and overseas countries except for China, Malaysia, Indonesia, and the
U.S., and there are each subsidiary in China, Malaysia, Indonesia and the U.S. The subsidiaries haveself-management system in each country and these subsidiaries develop comprehensive strategy based on global
strategy made by the company, and engage in business activities on a regional basis.
Thus, the T.Hasegawa group is composed of segments separated by the location of group companies, whose location
is determined by the production and sales structure, and defines the three segments of “Japan,” “Asia,” and “USA,”as reportable segments.
In addition, in the previous consolidated fiscal year, FLAVOR INGREDIENT HOLDINGS, LLC (Main Office:California, the US) had become a wholly owned subsidiary by acquisition of all the outstanding shares, which was
included in the scope of consolidation in USA segment, and in the current consolidated accounting period, PT.
HASEGAWA FLAVOURS AND FRAGRANCES INDONESIA, which was formerly a non-consolidated subsidiary,
was added to the scope of consolidation. In addition, the company was included in the reporting segment "Asia".
2. Calculation method of net sales, profit or loss, assets, and other items in reportable segments
The accounting method used for reportable segments is the same as the method stated in “Significant Basic Items for
Preparation of Consolidated Financial Statements.”
In the current consolidated accounting period, the Company changed its management KPI from ordinary income tooperating income. To effect this change, the presentation of segment profit or loss was changed from ordinary income
to operating income. To make the presentations on the consolidated statement of operations comparable year to year,
segment profit for the year ended September 30, 2017 was restated accordingly.
Inter-segment sales or transfers are based on current market prices.

123. Information of net sales, profit or loss, assets, and other items for each reportable segment(1) Fiscal year ended September 30, 2017
(From October 1, 2016 to September 30, 2017)(Millions of yen)
Reportable segment
Japan

Asia

USA

Adjustment(Note 1,2)

Total

Consolidated(Note 3)

Net sales
Sales to externalcustomers

36,077

7,737

4,186

48,001－

48,001

506

356

423

1,286

(1,286)－

Total

36,583

8,094

4,609

49,288(1,286)48,001

Segment profit

3,935

1,296

284

5,516

89

5,606

Segment assets

99,882

17,185

10,144

127,211(17,375)

109,836

Depreciation

2,040

519

282

2,842

－

2,842

Amortization of
Goodwill

－

135

72

－

－

208

Interest income

21

32

0

53

(19)

33

Interest expenses

0

8

14

23

(19)

3

Inter-segment sales ortransfers

Other items

Increase in property,
1,440
986
339
2,766
－
2,766
plant and equipment andintangible assets
Term-end balance of
－
1,023
2,862
－
－
3,885
Goodwill
Notes
1. The adjustments on segment profit of 89 million yen include 64 million yen of inter-segment transactions, 25
million yen of adjustments for inventories related to inter-segment transactions, and negative 0 million yen for others.
2. The adjustments for segment assets of negative 17,375 million yen include adjustments for negative 17,303 million
yen of inter-segment transaction and corporate assets, and negative 72 million yen of inventories related tointer-segment transactions, and 0 million yen for others.
3. Segment profit is adjusted to operating income of consolidated statements of income.

13

(2) Fiscal year ended September 30, 2018
(From October 1, 2017 to September 30, 2018)(Millions of yen)
Reportable segment
Japan

Asia

USA

Adjustment(Note 1,2)

Total

Consolidated(Note 3)

Net sales
Sales to externalcustomers

36,097

8,045

5,608

49,751－49,751

810

441

101

1,353

(1,353)－

Total

36,907

8,487

5,710

51,105(1,353)49,751

Segment profit

4,008

755

259

5,024

34

5,058

Segment assets

108,698

17,717

10,383

136,798(17,563)

119,235

Depreciation

2,009

567

410

2,986

－

2,986

Amortization of
Goodwill

－

145

285

－

－

430

Interest income

18

61

0

79

(17)

62

Interest expenses

0

2

12

15

(15)

0

Inter-segment sales ortransfers

Other items

Increase in property,
1,697
483
218
2,400
－
2,400
plant and equipment andintangible assets
Term-end balance of
－
906
2,573
－
－
3,480
Goodwill
Notes
1. The adjustments on segment profit of 34 million yen include 85 million yen of inter-segment transactions, negative
66 million yen of adjustments for inventories related to inter-segment transactions, and 15 million yen for others.
2. The adjustments for segment assets of negative 17,563 million yen include adjustments for negative 17,453 million
yen of inter-segment transaction and corporate assets, and negative 125 million yen of inventories related tointer-segment transactions, and 15 million yen for others.
3. Segment profit is adjusted to operating income of consolidated statements of income.

14