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 Nine Months Ended June 30, 2023
(Based on Japanese GAAP)
August 7, 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 UminoMinoru Nakamura

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

August 10, 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 nine months ended June 30, 2023 (from October 1, 2022 to June 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended June 30, 2023
Nine months ended June 30, 2022
Note: Comprehensive income

Millions of yen
48,16545,790%
5.2
11.3

Percentages indicate year-on-year changes
Profit attributable toOperating profit
Ordinary profit
owners of parent
Millions of yen% Millions of yen% Millions of yen%
5,945
(4.6)
6,397
(8.6)
5,355
(18.1)
6,232
17.9
6,998
22.6
6,538
28.0

Nine months ended June 30, 2023

¥4,950 million [(57.2)%]

Nine months ended June 30, 2022

¥11,580 million [57.0%]

Earnings per share

Diluted earnings per shareYen
130.16158.96Nine months ended June 30, 2023
Nine months ended June 30, 2022

Yen
129.68158.48(2) Consolidated financial position
Total assets
As of June 30, 2023
As of September 30, 2022
Reference: Equity

Net assets

Millions of yen
134,267
133,553

Equity ratio

Millions of yen
113,459
111,017

As of June 30, 2023

¥113,177 million

As of September 30, 2022

¥110,777 million

%
84.3
82.9

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

2nd quarter-end

3rd quarter-end

Fiscal year-end

Yen––Yen
29.00
30.00

Yen––

Yen
32.00

Yen
61.00

31.00

61.00

Year ended September 30, 2022
Year ending September 30, 2023
Year ending September 30, 2023
(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
64,6003.57,600(5.6)
8,050 (11.3)
6,600 (17.6)
160.41
Note: Revision of consolidated financial results forecast most recently announced: Yes
4. Notes(1) Changes in significant subsidiaries during the nine months ended June 30, 2023
(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 June 30, 2023

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 June 30, 2023

1,562,828 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)
Nine months ended June 30, 2023

41,145,361 shares Nine months ended June 30, 2022

41,131,785 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants or an audit corporation.
* Proper use of the forecast of financial results, and other special matters
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. Qualitative information on financial results for the period, (3) Explanationof consolidated 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)........................................................................................................................................... 91

1. Qualitative information on financial results for the period(1) Explanation of operating results
The Japanese economy in the nine months ended June 30, 2023 showed signs of recovery due to the easing ofbehavioral 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 topresent an uncertain outlook resulting from the continued impact on economic activities in Japan and overseas dueto the situation in Ukraine becoming prolonged, soaring raw material and resource prices, increasing commodities
prices 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 nine months ended June 30, 2023, net sales increased by ¥2,375 million (5.2%) year on year, amounting to¥48,165 million. The Company’s non-consolidated net sales increased by 3.4% year on year. As for net sales ofmajor overseas consolidated subsidiaries, net sales of subsidiaries in the USA increased by 4.9% year on year
(down 8.3% on a local currency basis) due to the impact of the weaker Japanese yen, those of subsidiaries in China
increased by 10.4% year on year (up 4.6% on a local currency basis), and those of subsidiaries in Malaysia
increased by 22.0% year on year (up 12.9% on a local currency basis).
By division, net sales of the Flavor Division increased by 5.6% year on year, amounting to ¥42,117 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 increased by 2.7% year on year, amounting to ¥6,047 million due mainly to anincrease in non-consolidated sales of the Company.
As for profit, operating profit decreased by ¥287 million (4.6%) year on year to ¥5,945 million due largely to anincrease in selling, general and administrative expenses as well as the deterioration of the ratio of cost to sales inassociation with an increase in raw material cost. Ordinary profit decreased by ¥601 million (8.6%) year on year to¥6,397 million due largely to decreases in operating profit and in foreign exchange gains. Profit attributable toowners of parent decreased by ¥1,182 million (18.1%) year on year to ¥5,355 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 nine months ended June 30, 2023 are as follows.
1 USD=137.10 JPY (119.83 JPY in the same period of the previous fiscal year, 14.4% yen depreciation YoY)
1 RMB=19.59 JPY (18.55 JPY in the same period of the previous fiscal year, 5.6% yen depreciation YoY)
1 RM=30.52 JPY (28.24 JPY in the same period of the previous fiscal year, 8.1% yen depreciation YoY)
Operating results by segment are as follows. Furthermore, operating results by segment include inter-segment
sales, etc.
(Japan)Net sales were ¥29,806 million (up 3.4% year on year), and segment profit was ¥3,910 million (down 2.2% year onyear).
(Asia)Net sales were ¥10,958 million (up 11.0% year on year), and segment profit was ¥2,198 million (up 23.7% year onyear).
(USA)
Net sales were ¥9,456 million (up 5.3% year on year), and segment loss was ¥202 million (segment profit of ¥488
million in the same period of the previous fiscal year).

2(2) Explanation of financial position(Current assets)
Current assets increased by ¥2,386 million compared to the end of the fiscal year ended September 30, 2022 to¥68,376 million due largely to increases in notes and accounts receivable - trade, securities, and merchandise andfinished goods by ¥354 million, ¥999 million, and ¥749 million, respectively, compared to the end of the fiscal
year ended September 30, 2022.
(Non-current assets)
Non-current assets decreased by ¥1,672 million compared to the end of the fiscal year ended September 30, 2022to ¥65,890 million due largely to progress in amortization resulting in decreases in buildings and structures andgoodwill by ¥876 million and ¥704 million, respectively, compared to the end of the fiscal year ended September
30, 2022.
(Current liabilities)
Current liabilities decreased by ¥1,934 million compared to the end of the fiscal year ended September 30, 2022 to¥11,396 million due largely to decreases in income taxes payable and provision for bonuses by ¥1,036 million and¥978 million, respectively, compared to the end of the fiscal year ended September 30, 2022.
(Non-current liabilities)
Non-current liabilities increased by ¥206 million to ¥9,411 million compared to the end of the fiscal year ended
September 30, 2022 due largely to an increase in deferred tax liabilities by ¥143 million compared to the end of thefiscal year ended September 30, 2022.
(Net assets)
While retained earnings increased by ¥2,804 million, total net assets increased by ¥2,442 million to ¥113,459
million due largely to a decrease in foreign currency translation adjustment by ¥317 million compared to the end ofthe fiscal year ended September 30, 2022.
Furthermore, the yen exchange rates for major currencies (at the end of the period) applied for translation in thebalance sheets as of June 30, 2023 are as follows.
1 USD=144.99 JPY (144.81 JPY at the end of the previous fiscal year, 0.1% yen depreciation YoY)
1 RMB=19.94 JPY (20.37 JPY at the end of the previous fiscal year, 2.1% yen appreciation YoY)
1 RM=30.96 JPY (31.24 JPY at the end of the previous fiscal year, 0.9% yen appreciation YoY)

(3) Explanation of consolidated financial results forecast and other forward-looking statements
Revisions have been made to the consolidated financial results forecast announced on November 11, 2022. For
details, please refer to “Revisions to Financial Results Forecast for the Year” released today (August 7, 2023).

3

2. Quarterly consolidated financial statements and significant notes thereto(1) Consolidated balance sheets(Millions of yen)
As of September 30, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
SecuritiesMerchandise 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 payableProvision 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

As of June 30, 2023

20,351
18,722
8,999
7,750
78
9,013
1,099
(26)
65,98920,48019,076
9,999
8,500
176
8,982
1,181
(21)
68,376

19,593
14,15833,752

18,716
14,46833,184

6,815
13,37920,194

6,110
13,177
19,28812,589
18
1,039
(30)
13,616
67,563
133,553

12,38818
1,039(27)13,41765,890134,267

6,211
1,694
1,632

6,258
658
653

74

–

3,718
13,331

3,826
11,396

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

1,245
7,500
69
199
396
9,411
20,808(Millions of yen)
As of September 30, 2022
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

5

As of June 30, 2023

5,364
7,513
81,898(2,555)92,2205,364
7,513
84,702(2,556)95,024

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

6,553
11,781(182)
18,152
282
113,459
134,267(2) Consolidated statements of income (cumulative) and consolidated statements of comprehensive income(cumulative)
Consolidated statements of income (cumulative)(Millions of yen)Nine months ended
June 30, 2022
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
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
ProfitProfit attributable to non-controlling interestsProfit attributable to owners of parent

6

Nine months ended
June 30, 2023

45,79026,80818,981
12,7496,232

48,16528,84519,32013,374
5,945

119
175
388
99
782

134
190
14
132
471

5
10
16
6,998

5
13
18
6,397

2,230
2,230

1,203
1,203

15
15
9,213
2,621
6,591
53
6,538

42
42
7,557
2,202
5,355
–
5,355

Consolidated statements of comprehensive income (cumulative)(Millions of yen)
Nine months ended
June 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

7

Nine months ended
June 30, 2023

6,591

5,355

(3,667)
8,619
36
4,988
11,580(104)(317)
16(404)
4,950

11,496

4,950

83–

(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 third
quarter ended June 30, 2023.

8

(Segment information)
I. Nine months ended June 30, 2022 (from October 1, 2021 to June 30, 2022)
1. Information on net sales and profit or loss for each reportable segment and information on disaggregation ofrevenue(Millions of yen)
Reportable segment
JapanNet sales
Flavor and fragrance business(Note 3)

AsiaUSA

Total

Adjustment(Note 1)

Consolidated(Note 2)

27,122

9,765

8,901

45,790–45,790

Revenue from contracts withcustomers

27,122

9,765

8,901

45,790–45,790

Sales to external customers
Inter-segment sales or transfers

27,122
1,704

9,765
110

8,901
75

45,7901,890–(1,890)45,790–Total

28,827

9,875

8,977

47,680(1,890)

45,790

3,998

1,776

488

6,263

(31)

6,232

Segment profit
Notes:

1.

The adjustments on segment profit of negative ¥31 million include ¥79 million of inter-segment transactions, negative ¥107
million of adjustments for inventories related to inter-segment transactions, and negative ¥3 million for others.
2. Segment profit 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. Nine months ended June 30, 2023 (from October 1, 2022 to June 30, 2023)
1. Information on net sales and profit or loss for each reportable segment and information on disaggregation ofrevenue(Millions of yen)
Reportable segment
JapanNet sales
Flavor and fragrance business(Note 3)

Asia

USA

Total

Adjustment(Note 1)

Consolidated(Note 2)

28,003

10,822

9,339

48,165–48,165

Revenue from contracts withcustomers

28,003

10,822

9,339

48,165–48,165Sales to external customers
Inter-segment sales or transfers

28,003
1,803

10,822
135

9,339
116

48,1652,055–(2,055)

48,165–

Total

29,806

10,9589,456

50,220(2,055)

48,165

3,910

2,198

(202)

5,906

38

5,945

Segment profit or loss
Notes:

1.

The adjustments on segment profit or loss of ¥38 million include ¥75 million of inter-segment transactions, negative ¥36
million of adjustments for inventories related to inter-segment transactions, and negative ¥0 million for others.
2. Segment profit 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