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 Six Months Ended March 31, 2018
(Based on Japanese GAAP)May 11, 2018
Company name:T. HASEGAWA CO., LTD.
Stock exchange listing: Tokyo
Stock code:
Representative:

4958
URL
President & COO

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

Inquiries:
Director & Executive Vice PresidentScheduled date to file Quarterly Securities Report:

Minoru Nakamura
May 14, 2018

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

June 1, 2018
Yes

Holding of quarterly 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 six months ended March 31, 2018 (from October 1, 2017 to March 31, 2018)(1) Consolidated operating results (cumulative)
Net sales
Six months ended March 31, 2018
Six months ended March 31, 2017
Note: Comprehensive income

Millions of yen
23,462
22,991

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent% Millions of yen% Millions of yen% Millions of yen%
2.0
2,147 (30.2)
2,310 (31.3)
1,617 (31.2)
0.7
3,077
35.9
3,363
49.9
2,351
52.4

Six months ended March 31, 2018
Six months ended March 31, 2017

¥3,698 million [(17.6)%]¥4,487 million [199.4%]

Earnings per share

Diluted earnings per shareYen
38.12
55.44

Six months ended March 31, 2018
Six months ended March 31, 2017

Yen
38.05
55.37

(2) Consolidated financial position
Total assets
Millions of yen
113,032
109,836

As of March 31, 2018
As of September 30, 2017
Reference: Equity

Net assets

As of March 31, 2018
As of September 30, 2017

Equity ratio

Millions of yen
90,361
87,528

%
79.8
79.6

¥90,253 million¥87,438 million

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

2nd quarter-end

Yen
Year ended September 30, 2017
–Year ending September 30, 2018–Year ending September 30, 2018
(Forecast)
Note: Revision of cash dividend forecast most recently announced: NoYen
16.00
17.00

1

3rd quarter-end

Fiscal year-endTotal

Yen–Yen
19.00

Yen
35.00

–

18.00

35.00

3. Forecast of consolidated financial results for the year ending September 30, 2018 (from October 1, 2017 to September 30, 2018)

Net sales

Full year

Millions of yen
50,700Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
Earnings per shareowners of parent% Millions of yen% Millions of yen% Millions of yen%
Yen
5.6
5,260(6.2)
5,530(9.4)
3,910(9.0)
92.13

Note: Revision of consolidated financial results forecast most recently announced: Yes
4. Notes(1) Changes in significant subsidiaries during the six months ended March 31, 2018(changes in specified subsidiaries resulting in the change in scope of consolidation):(2) Application of special accounting methods for preparing quarterly consolidated financial statements:

NoYes(3) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

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

NoNo(4) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of March 31, 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 March 31, 2018269,899 shares As of September 30, 2017

281,719 shares

Average number of shares during the period (cumulative from the beginning of the fiscal year)
Six months ended March 31, 2018

42,433,206 shares Six months ended March 31, 2017

42,426,791 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.

2

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

As of March 31, 2018

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

10,802
16,893

12,045
15,312

Securities
Merchandise and finished goods

5,999
6,530

5,999
7,135

Work in process
Raw materials and supplies

160
6,004

133
6,875

Other
Allowance for doubtful accounts2,313
(8)

1,805
(6)

Total current assets

48,69449,300

Buildings and structures, net
Other, net

17,953
13,291

17,41813,403

Total property, plant and equipment

31,24530,821

Non-current assets
Property, plant and equipment

Intangible assets
Goodwill

3,885

3,528

Other

3,923

3,684

Total intangible assets

7,809

7,213

21,202
18

24,76520

Other
Allowance for doubtful accounts

922
(57)

967
(56)

Total investments and other assets

22,086

25,696

61,141

63,732

109,836

113,032

5,540

5,654

4839

1650

1,264
67830–

Other

2,818

2,667

Total current liabilities

10,534

9,804

Long-term loans payable
Deferred tax liabilities

44,012

1
5,159

Net defined benefit liability
Asset retirement obligations

6,631
70

6,648
70

997
56

924
61

11,772

12,86622,30722,671

Investments and other assets
Investment securities
Net defined benefit asset

Total non-current assets
Total assets
Liabilities
Current liabilities
Notes and accounts payable - trade
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for directors' bonuses

Non-current liabilities

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

3

(Millions of yen)
As of September 30, 2017

As of March 31, 2018

Net assets
Shareholders' equity
Capital stock

5,364

5,364

Capital surplus
Retained earnings

7,292
62,438

7,295
63,155

Treasury shares

(323)

(309)

74,77275,506

12,435468

14,94917

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustmentRemeasurements of defined benefit plans
Total accumulated other comprehensive income
Subscription rights to shares
Total net assets
Total liabilities and net assets

4(237)(220)

12,665

14,74690

107

87,52890,361

109,836

113,032

Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Six months ended

Six months ended

March 31, 2017

March 31, 2018

Net sales
Cost of sales

22,991
13,79823,462
14,544Gross profit

9,193

8,917Selling, general and administrative expenses

6,115

6,770

Operating profit

3,077

2,147

Interest income
Dividend income

18115

30136

Foreign exchange gains
Other

136
46–
63

Total non-operating income

316

229

30Rent expenses on facilities
Foreign exchange losses

26––
61

Other

15

Non-operating income

Non-operating expenses
Interest expenses

Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Loss on abandonment of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes

3166

3,363

2,310

55

–55–

70

3570

35

3,348

2,274

996

656

Profit

2,351

1,617

Profit attributable to owners of parent

2,351

1,617

5

Consolidated statements of comprehensive income (cumulative)(Millions of yen)

ProfitOther comprehensive income

Six months ended

Six months ended

March 31, 2017

March 31, 2018
2,351

1,617

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

984
1,133

2,514(450)

Remeasurements of defined benefit plans, net of tax

1717

2,1352,081

Comprehensive income

Total other comprehensive income

4,487

3,698

Comprehensive income attributable toComprehensive income attributable to owners of parent

4,487

3,698

––

Comprehensive income attributable to non-controllinginterests

6

Segment Information
1. Six months ended March 31, 2017 (from October 1, 2016 to March 31, 2017)
Net sales and profit or loss by reporting segment(Millions of yen)
Reporting segment
JapanAsiaUSA

Total

Adjustment(Note 1)

Consolidated(Note 2)

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

17,313259

3,8811701,796
93

22,991
522

－
(522)

22,991－

Total

17,572

4,052

1,889

23,514(522)

22,991

Segment profit

2,179

684

131

2,995

82

3,077

Notes
1. The adjustments on segment profit of 82 million yen include 43 million yen adjustments of inventories related to inter-segment
transactions, 39 million yen adjustments of elimination of internal transactions between segments, and negative 0 million yen forothers.
2. Segment profit is adjusted to operating income of consolidated quarterly statements of income.
2. Six months ended March 31, 2018 (from October 1, 2017 to March 31, 2018)(1) Net sales and profit or loss by reporting segment(Millions of yen)
Reporting segment
JapanAsiaUSA

Total

Adjustment(Note 1)

Consolidated(Note 2)

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

16,938
441

3,954
176

2,569
53

23,462
671

－
(671)

23,462－

Total

17,380

4,131

2,622

24,134(671)

23,462

Segment profit

1,763

392

32

2,188

(41)

2,147

Notes
1. The adjustments on segment profit of negative 41 million yen include 28 million yen adjustments of elimination of internaltransactions between segments, negative 69 million yen adjustments of inventories related to inter-segment transactions,and 0 million yen for others.
2. Segment profit is adjusted to operating income of consolidated quarterly statements of income.
(2) Notes relating to changes in reportable segments etc.
The Company changed its management KPI from ordinary income to operating income from the first quarter of this fiscal year.
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 March 31, 2017 was restated accordingly.
In the second quarter 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 wasincluded in the reporting segment "Asia".

7