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 Year Ended September 30, 2021
(Based on Japanese GAAP)
November 12, 2021
Company name:T. HASEGAWA CO., LTD.
Stock exchange listing: Tokyo
Stock code:
4958
URL https://www.t-hasegawa.co.jp/
Representative:
President & COO
Takao Umino
Inquiries:
Director & Senior Executive Vice President Minoru Nakamura
TEL 03-3241-1151
Scheduled date of ordinary general meeting of shareholders:
December 22, 2021
Scheduled date to file Securities Report:
December 23, 2021
Scheduled date to commence dividend payments:
December 6, 2021
Preparation of supplementary material on financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors and analysts)(Amounts less than one million yen are rounded down)
1. Consolidated financial results for the year ended September 30, 2021 (from October 1, 2020 to September 30, 2021)(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, 2021
55,755
11.1
6,859
28.1
7,466
27.4
6,763
32.9
Year ended September 30, 2020
50,192
(0.6)
5,356
14.5
5,861
13.2
5,090
23.5
Note: Comprehensive income

Year ended September 30, 2021
Year ended September 30, 2020
Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
163.00
7.1
6.4
12.3
122.34
5.6
5.2
10.7

Diluted earnings per
share

Yen
163.63122.79Year ended September 30, 2021
Year ended September 30, 2020

¥8,688 million [163.5%]¥3,297 million [–%]

Reference: Share of profit (loss) of entities accounted for using equity method

Year ended September 30, 2021
Year ended September 30, 2020¥– million¥– million(2) Consolidated financial position
Total assets
As of September 30, 2021
As of September 30, 2020
Reference: Equity

Net assets

Millions of yen
120,945
113,445

As of September 30, 2021
As of September 30, 2020

Millions of yen
98,301
92,218Equity ratio

Net assets per share
%
81.1
81.1

Yen
2,385.69
2,217.96¥98,051 million¥91,990 million(3) Consolidated cash flows

Year ended September 30, 2021
Year ended September 30, 2020

Cash flows fromoperating activities
Millions of yen
9,980
6,387

Cash flows frominvesting activities
Millions of yen(14,130)(431)

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(2,733)
18,863(1,511)
25,3602. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended September 30, 2020
Year ended September 30, 2021
Year ending September 30, 2022
(Forecast)of dividends
Total cash
Dividend payout Ratio
to net assets
dividends (Total) ratio (Consolidated) (Consolidated)

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

18.00
22.00

–
–

22.00
33.00

40.00
55.00

1,658
2,268

32.6
33.6

1.8
2.4

–

29.00

–

30.00

59.00

33.3

3. Forecast of consolidated financial results for the year ending September 30, 2022 (from October 1, 2021 to September 30, 2022)
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
59,200
6.2
7,630
11.2
8,090
8.4
7,290
7.8
177.37
4. Notes(1) Changes in significant subsidiaries during the year ended September 30, 2021
(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:No
Changes in accounting policies due to other reasons:
Changes in accounting estimates:
Restatement of prior period financial statements:

No
No
No

(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, 2021

42,708,154 shares As of September 30, 2020

42,708,154 shares

Number of treasury shares at the end of the period
As of September 30, 2021

1,608,431 shares As of September 30, 2020

1,233,044 shares

41,335,042 shares Year ended September 30, 2020

41,458,341 shares

Average number of shares during the period
Year ended September 30, 2021

Note: For further details about the number of shares as a basis for calculation of earnings per share (consolidated), please refer to “Per
share information” under “3. Consolidated financial statements and significant notes thereto, (5) Notes to consolidated financial
statements” on page 19 of the Attached Material.

Reference: Summary of non-consolidated financial results
1. Non-consolidated financial results for the year ended September 30, 2021 (from October 1, 2020 to September 30, 2021)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended September 30, 2021
Year ended September 30, 2020

Operating profit

Millions of yen
37,36236,821

%
1.5
(2.2)

Earnings per shareYen
116.59116.30Year ended September 30, 2021
Year ended September 30, 2020

Millions of yen
3,891
3,704

Ordinary profit
%
5.1
(3.4)

Millions of yen
4,449
5,168

Profit%(13.9)
19.6

Millions of yen
4,819
4,821

%
(0.0)
(4.6)

Diluted earnings
per shareYen
116.14115.87(2) Non-consolidated financial position
Total assets
As of September 30, 2021
As of September 30, 2020
Reference: Equity

Net assets

Millions of yen
106,168
104,748

As of September 30, 2021
As of September 30, 2020

Millions of yen
86,96886,034Equity ratio

Net assets per share
%
81.7
81.9

Yen
2,109.95
2,068.85¥86,718 million¥85,805 million

2. Forecast of non-consolidated financial results for the year ending September 30, 2022 (from October 1, 2021 to September 30, 2022)
Percentages indicate year-on-year changes
Net sales
Full year

Millions of yen
38,100Operating profit% Millions of yen
2.0
4,100

Ordinary profit% Millions of yen
5.4
4,550

Profit% Millions of yen
2.3
4,920

Earnings per share
%
2.1

Yen
119.71* 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(Caution regarding forward-looking statements and others)
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. Overview of operating results and others, (4) Future outlook” on page 4 of the
Attached Material.
(How to obtain supplementary material on financial results)
The Company plans to hold a financial results meeting for institutional investors and analysts through live streaming on Thursday, November
25, 2021.
Materials for the financial results meeting will be disclosed on TDnet on the same day and posted on the Company’s website.

Attached Material Index
1. Overview of operating results and others .................................................................................................................... 2(1) Overview of operating results for the fiscal year................................................................................................... 2(2) Overview of financial position for the fiscal year ................................................................................................. 2(3) Overview of cash flows for the fiscal year ............................................................................................................ 3(4) Future outlook ....................................................................................................................................................... 4(5) Basic policy on profit distribution and dividends for the fiscal year and next fiscal year ..................................... 4
2. Basic concept regarding selection of accounting standards ......................................................................................... 6
3. Consolidated financial statements and significant notes thereto .................................................................................. 7(1) Consolidated balance sheets .................................................................................................................................. 7(2) Consolidated statements of income and consolidated statements of comprehensive income ............................... 9
Consolidated statements of income ....................................................................................................................... 9
Consolidated statements of comprehensive income ............................................................................................ 10(3) Consolidated statements of changes in equity ..................................................................................................... 11(4) Consolidated statements of cash flows ................................................................................................................ 13(5) Notes to consolidated financial statements .......................................................................................................... 15(Uncertainties of entity’s ability to continue as going concern) .......................................................................... 15(Changes in significant accounting policies for preparation of consolidated financial statements) .................... 15(Notes when there is significant changes in amounts of equity) ......................................................................... 15(Changes in accounting policies)......................................................................................................................... 15(Segment information, etc.) ................................................................................................................................. 16(Per share information) ........................................................................................................................................ 19(Significant subsequent event) ............................................................................................................................ 20

1

1. Overview of operating results and others(1) Overview of operating results for the fiscal year
The Japanese economy in the fiscal year ended September 30, 2021 was in a severe situation with weak corporate
earnings and personal consumption due to the prolonged impact of the novel coronavirus disease (COVID-19). In
addition, as there were concerns about the impact of the infection trend on economic activities in Japan andoverseas, the future remained uncertain.
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.
The Group’s performance was steady due to contribution of new products in the Flavor Division and an increase insales for toiletry products in the Fragrance Division, although earnings performance of the Group was affected by
COVID-19 prompting outing restrictions, teleworking from home, and slump in personal consumption associatedwith closure and shortening hours of restaurants, etc. in Japan. On the other hand, performance of subsidiaries in
China and the USA was strong as the overseas effect of COVID-19 was immaterial, and earnings performance ofUS-based MISSION FLAVORS & FRAGRANCES, INC. (“MISSION”), which newly became a consolidated
subsidiary in December 2020, contributed to consolidated operating results of the Group (no record in the fiscal
year ended September 30, 2020).
As a result, in the fiscal year ended September 30, 2021, net sales increased year on year, amounting to ¥55,755
million (up 11.1% year on year). The Company’s non-consolidated net sales increased by 1.5% year on year. As fornet sales of major overseas consolidated subsidiaries, net sales of subsidiaries in China increased by 26.6% year on
year (up 17.8% on a local currency basis), those of subsidiaries in the USA (including MISSION) increased by
49.5% (up 50.0% on a local currency basis), and those of subsidiaries in Malaysia increased by 10.7% (up 8.7% on
a local currency basis).
By division, net sales of the Flavor Division increased by 11.5% year on year, amounting to ¥48,115 million due
mainly to the contribution of MISSION to sales and the increase in sales of subsidiaries in China.
Net sales of the Fragrance Division increased by 8.6% year on year, amounting to ¥7,640 million due mainly to anincrease in non-consolidated sales of the Company.
As for profit, although selling, general and administrative expenses increased in line with recording of expenses
related to the acquisition of shares of MISSION and amortization of goodwill of the said company, etc., operating
profit increased by ¥1,503 million (28.1%) compared to the fiscal year ended September 30, 2020 to ¥6,859 million
due largely to an increase in gross profit resulting from the increase in net sales and improvement in the ratio of
cost to sales. Ordinary profit increased by ¥1,605 million (27.4%) compared to the fiscal year ended September 30,
2020 to ¥7,466 million. Profit attributable to owners of parent increased by ¥1,672 million (32.9%) compared to
the fiscal year ended September 30, 2020 to ¥6,763 million due mainly to the increase in ordinary profit andrecording of gain on sale of investment securities as extraordinary income.

(2) Overview of financial position for the fiscal year
(Current assets)
While cash and deposits and notes and accounts receivable - trade increased by ¥2,453 million and ¥1,591 million,
respectively, compared to the fiscal year ended September 30, 2020, securities decreased by ¥8,000 million. Duelargely to these factors, current assets decreased by ¥3,771 million compared to the fiscal year ended September 30,
2020 to ¥55,242 million.
(Non-current assets)
Property, plant and equipment increased by ¥749 million compared to the fiscal year ended September 30, 2020 to¥30,094 million mainly because construction in progress increased by 627 million.
Intangible assets grew by ¥12,874 million compared to the fiscal year ended September 30, 2020 to ¥16,713
million due largely to the recording of goodwill and customer relationship in association with T. HASEGAWA

2

U.S.A., INC., a consolidated subsidiary of the Company, acquiring all of the shares of MISSION, which was
included under the scope of consolidation in the fiscal year ended September 30, 2021.
Investments and other assets decreased by ¥2,352 million compared to the fiscal year ended September 30, 2020 to¥18,894 million due mainly to sale of investment securities.
(Current liabilities)
Current liabilities increased by ¥1,342 million compared to the fiscal year ended September 30, 2020 to ¥11,604
million, due largely to an increase in income taxes payable by ¥1,022 million.
(Non-current liabilities)
Non-current liabilities increased by ¥75 million compared to the fiscal year ended September 30, 2020 to ¥11,040
million, due largely to increases in retirement benefit liability and other by ¥192 million and ¥257 million,
respectively, while deferred tax liabilities decreased by ¥349 million due mainly to sale of investment securities.
(Net assets)
Compared to the fiscal year ended September 30, 2020, while retained earnings and foreign currency translation
adjustment increased by ¥4,938 million and ¥3,169 million, respectively, valuation difference on available-for-salesecurities decreased by ¥1,279 million. Due largely to these factors, total net assets increased by ¥6,082 million
compared to the fiscal year ended September 30, 2020 to ¥98,301 million.

(3) Overview of cash flows for the fiscal year
Cash and cash equivalents (“cash”) in the fiscal year ended September 30, 2021 decreased by ¥6,497 million (anincrease by ¥4,461 million in the fiscal year ended September 30, 2020) compared to September 30, 2020 to¥18,863 million.
The respective cash flow positions for the fiscal year ended September 30, 2021, and the factors thereof are as
follows.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥9,980 million (compared with ¥6,387 million provided for theprevious fiscal year). The main factors were income taxes paid of ¥1,693 million, and loss (gain) on sale andvaluation of investment securities of ¥2,265 million, while there were profit before income taxes of ¥9,692 million
and depreciation of ¥3,186 million.
(Cash flows from investing activities)
Net cash used in investing activities was ¥14,130 million (compared with ¥431 million used for the previous fiscal
year). The main factors were purchase of shares of subsidiaries of ¥12,885 million, payments into time deposits of¥3,724 million and proceeds from withdrawal of time deposits of ¥3,146 million, and purchase of property, plantand equipment of ¥2,572 million and proceeds from sale of investment securities of ¥2,235 million.
(Cash flows from financing activities)
Net cash used in financing activities was ¥2,733 million (compared with ¥1,511 million used for the previous fiscal
year). The main factor was dividends paid of ¥1,824 million and purchase of treasury shares of ¥846 million.

3

(Reference) Trends in cash flow indicators
Fiscal year ended
September 30,
2018

Fiscal year ended
September 30,
2019

Fiscal year ended
September 30,
2020

Fiscal year ended
September 30,
2021

Equity ratio (%)

79.6

79.2

81.1

81.1

Market value equity ratio (%)

84.1

72.6

77.3

90.7

Ratio of cash flow to interest-bearing debt (%)

0.03

0.00

1.63

3.31

9,281.6

13,905.7

2,059.7

1,109.2

Interest coverage ratio (times)
Equity ratio
Market value equity ratio (%)
Ratio of cash flow to interest-bearing debt (%)
Interest coverage ratio (times)
Notes:

1.
2.
3.
4.

:
:
:
:

Equity / Total assets
Market capitalization / Total assets
Interest-bearing debt / Cash flow
Cash flow / Interest payments

All indicators are calculated using consolidated financial data.
Market capitalization is based on number of shares issued excluding treasury shares.
Operating cash flow is used for cash flow.
Interest-bearing debt includes all liabilities on the consolidated balance sheets on which interest is being paid. Interest
payments are equal to interest paid as stated in the consolidated statements of cash flows.

(4) Future outlook
With regard to the future Japanese economy, as timing of COVID-19 abating cannot be projected, there areconcerns about influences of the infection trend on economic activities in Japan and overseas, etc., and the future is
expected to remain uncertain.
The flavor and fragrance industry is also anticipated to remain in a severe situation due to further intensifying
competition among companies for market share, increasing demand for quality assurance, and other factors.
Under this situation, with the declared commitment to building on a solid foundation of technology, the Group willconduct distinctive and differentiated product development by further improving research and technology
development capabilities, and strive to reduce cost through an increase in productivity and promotion of
streamlining of all aspects of operations.
Moreover, in order to flexibly respond to the significantly changing business environment and unforeseen
circumstances and seek future growth of the Group, it is essential to further strengthen the global expansion whileworking to increase the share in the Japanese market where maturation is progressing in step with the fallingbirthrate and the aging population. The Group will efficiently invest managerial resources into our priority regions,
Asian regions, centering on China and Southeast Asia, as well as the USA, to accurately capture the growthpotential of the markets, consumer palatability, etc. and plan and promote a business strategy in line with changes
in the business environment. In addition, the Group will implement investments to achieve sustainable growth into
the future, aiming to enhance the business performance in overseas markets.
While it is difficult to accurately project the future timing of COVID-19 abating and infection trend remains
uncertain, the Company assumes that the impacts of COVID-19 will continue in the fiscal year ending September
30, 2022. Based on this assumption, the Group plans to achieve consolidated net sales at ¥59,200 million (up 6.2%
year on year), operating profit at ¥7,630 million (up 11.2% year on year), ordinary profit at ¥8,090 million (up8.4% year on year), and profit attributable to owners of parent at ¥7,290 million (up 7.8% year on year) for the
fiscal year ending September 30, 2022.

(5) Basic policy on profit distribution and dividends for the fiscal year and next fiscal year
The Company has the basic policy of paying dividends of surplus twice a year, interim dividend and year-end
dividend, targeting the payout ratio of 35% on a consolidated basis, to return profit to shareholders based on its
business performance, while securing internal reserves necessary for further strengthening of the Group’s
management base and future business expansion.

4

The Company stipulates in the Articles of Incorporation that dividends of surplus, etc. may be paid by a resolutionof the Board of Directors in accordance with the provision of Article 459, paragraph (1) of the Companies Act, andthe Board of Directors is the decision-making body for dividends of surplus.
With regard to the dividend for the fiscal year ended September 30, 2021, the Company decided to pay an annual
dividend of ¥55 per share (of which, interim dividend of ¥22). As a result, the payout ratio on a consolidated basis
for the fiscal year ended September 30, 2021 is 33.6%.
Internal reserves will be used for capital expenditures and effective investments to implement the globalization
strategy.
Dividends of surplus for the fiscal year are as follows.
Date of resolution

Total amount of dividends (Millionsof yen)Dividends per share (Yen)

Resolution at a Board of Directors meeting held on
May 7, 2021

912

22

Resolution at a Board of Directors meeting held on
November 12, 2021

1,356

33

With regard to the dividend for the next fiscal year, the Company plans to pay an annual dividend of ¥59 per share (of which, interim
dividend of ¥29).

5

2. Basic concept regarding selection of accounting standards
The Group plans to continue using the Japanese GAAP to prepare its consolidated financial statements for the time
being, as they facilitate comparison with previous consolidated financial statements and with other companies. The
Group’s policy on applying the International Financial Reporting Standards (IFRS) is to take action as appropriate
based on considerations of various conditions in Japan and overseas.

6

3. Consolidated financial statements and significant notes thereto(1) Consolidated balance sheets(Millions of yen)

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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Customer relationship
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

7

As of September 30, 2020

As of September 30, 2021

16,584
15,471
12,000
7,161
170
6,901
737
(13)
59,013

19,037
17,063
3,999
7,516
120
6,444
1,077
(17)
55,242

38,942(23,027)
15,91534,926(30,931)
3,995
7,432
(6,232)
1,200
6,793
1,440
29,34540,402(24,425)
15,97735,691(31,542)
4,148
7,784
(6,711)
1,072
6,829
2,067
30,094

572
2,414
852
3,839

6,043
9,711
958
16,713

19,838
614
17
828
(51)
21,24654,431
113,445

17,930
575
21
422
(55)
18,89465,703
120,945(Millions of yen)

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
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

8

As of September 30, 2020

As of September 30, 2021

4,743
630
1,431

5,000
1,653
1,550

74

59

3,381
10,261

3,340
11,604

2,992
7,121
69
648
131
10,965
21,226

2,643
7,314
63
629
388
11,04022,644

5,364
7,298
71,169(1,820)82,012

5,364
7,305
76,107(2,630)86,147

11,551(1,316)
(256)
9,978
228
92,218113,445

10,272
1,852(221)
11,903250
98,301
120,945

(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
September 30, 2020
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Packing and transportation costs
Salaries and allowances
Provision for bonuses
Provision for bonuses for directors (and other officers)
Retirement benefit expenses
Welfare expenses
Depreciation
Amortization of goodwill
Other
Total 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 income
Gain on sale of non-current assets
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 - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to owners of parent

9

Fiscal year ended
September 30, 2021

50,19230,783
19,40855,755
33,106
22,648

947
6,114
954
74
524
1,152
885
135
3,263
14,052
5,356

1,061
6,477
1,010
59
549
1,304
1,172
572
3,581
15,788
6,859

95
307
–
138
541

117
274
147
116
655

3
10
22
36
5,861

8
–
39
48
7,466

359
867
1,227

–
2,265
2,265

59
59
7,028
1,774
163
1,938
5,090
5,090

38
38
9,692
2,670
259
2,929
6,763
6,763

Consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended
September 30, 2020
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

10

Fiscal year ended
September 30, 2021

5,090

6,763

(1,989)142
52(1,793)
3,297(1,279)
3,169
35
1,925
8,688

3,297

8,688

–

–

(3) Consolidated statements of changes in equity
Fiscal year ended September 30, 2020
(Millions of yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

5,364

7,297

Retained earnings

Treasury shares

67,570(1,856)

Total shareholders’equity78,377

Changes during period
Dividends of surplus(1,492)(1,492)

Profit attributable to owners ofparent

5,090

5,090

Purchase of treasury shares
Disposal of treasury shares

0

(0)

(0)

35

36

Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

–

0

3,598

35

3,634

5,364

7,298

71,169(1,820)82,012

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

13,540(1,459)Total
Remeasurements accumulatedof definedotherbenefit plans comprehensive
income(309)

11,771

Share
acquisitionrights

195

Total net assets

90,344

Changes during period
Dividends of surplus(1,492)

Profit attributable to owners ofparent

5,090

Purchase of treasury shares(0)

Disposal of treasury shares

36

Net changes in items other thanshareholders’ equity(1,989)142

52(1,793)32(1,760)Total changes during period(1,989)142

52(1,793)32

1,874

Balance at end of period

11,551(1,316)

(256)

9,978

228

92,21811

Fiscal year ended September 30, 2021
(Millions of yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

5,364

7,298

Retained earnings

Treasury shares

71,169(1,820)Total shareholders’equity82,012

Changes during period
Dividends of surplus(1,825)(1,825)

Profit attributable to owners ofparent

6,763

6,763

Purchase of treasury shares
Disposal of treasury shares

6

(846)

(846)

36

43

Net changes in items other thanshareholders’ equity
Total changes during period
Balance at end of period

–

6

4,938

(809)

4,135

5,364

7,305

76,107(2,630)86,147

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

11,551(1,316)

Total
Remeasurements accumulatedof definedotherbenefit plans comprehensive
income
(256)

9,978

Share
acquisitionrights228

Total net assets

92,218Changes during period
Dividends of surplus(1,825)

Profit attributable to owners ofparent

6,763

Purchase of treasury shares(846)

Disposal of treasury shares

43

Net changes in items other thanshareholders’ equity(1,279)

3,169

35

1,925

21

1,947

Total changes during period(1,279)

3,169

35

1,925

21

6,082

Balance at end of period

10,272

1,852

(221)

11,903250

98,301

12

(4) Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
September 30, 2020
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in long-term accounts payable other
Share-based payment expenses
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for bonuses for
directors (and other officers)
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Decrease (increase) in retirement benefit asset
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale of property, plant and equipment
Loss (gain) on sale of intangible assets
Loss on abandonment of non-current assets
Loss (gain) on sale and valuation of investment
securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Payments for retirement of property, plant andequipment
Purchase of intangible assets
Proceeds from sale of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Purchase of shares of subsidiaries
Net cash provided by (used in) investing activities

13

Fiscal year ended
September 30, 2021

7,028
2,868
135

9,692
3,186
572

(238)

(19)

69
134

65
83

12

(14)

(18)
198
1
(403)
3
23
(318)
(39)
59

7
242
(3)
(391)
8
(62)
(0)
–
38

(867)

(2,265)

351
437
(661)
(56)
(13)
8,704
397
(3)
(2,712)
6,387(1,087)
584
(7)
2
649
11,284398(8)(1,693)9,980(2,952)
2,636(3,150)590(3,724)
3,146(2,572)
1

(30)

(26)

(108)
42
(36)
2,578
–
(431)

(166)
–
(138)
2,235
(12,885)(14,130)

(Millions of yen)
Fiscal year ended
September 30, 2020
Cash flows from financing activities
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from sale of treasury shares
Repayments of lease obligations
Dividends paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

14

Fiscal year ended
September 30, 2021

(0)
(0)
0
(19)
(1,491)(1,511)

–
(846)
0
(61)
(1,824)(2,733)

17

385

4,461
20,89825,360(6,497)25,36018,863

(5) Notes to consolidated financial statements(Uncertainties of entity’s ability to continue as going concern)
Not applicable.
(Changes in significant accounting policies for preparation of consolidated financial statements)(Significant change in scope of consolidation)
In the fiscal year ended September 30, 2021, T. HASEGAWA U.S.A., INC., a consolidated subsidiary of theCompany, acquired all of the shares of MISSION FLAVORS & FRAGRANCES, INC. (Location: California,
U.S.A.), and accordingly, MISSION FLAVORS & FRAGRANCES, INC. is under the scope of consolidation.
(Notes when there are significant changes in amounts of equity)
The Company, at the Board of Directors held on May 7, 2021, resolved purchase of treasury shares conducted pursuant
to the provision of Article 156 of the Companies Act of Japan, applied by replacing the terms pursuant to the provisionof Article 165, paragraph (3) of the Companies Act and the concrete method of purchasing the treasury shares throughthe Off-Auction Own Share Repurchase Trading (ToSTNeT-3) at Tokyo Stock Exchange, thereby having purchased
400,000 shares of treasury shares on May 10, 2021. Accordingly, due in part to the increase in treasury shares by ¥845
million during the fiscal year ended September 30, 2021, treasury shares amount to ¥2,630 million as of September 30,
2021.
(Changes in accounting policies)
Not applicable.

15

(Segment information, etc.)[Segment information]
1. Overview of reportable segments
The reportable segments of the Group are components of the Group for which discrete financial information isavailable and regularly reviewed by the Board of Directors of the Company to make decisions about allocation ofmanagerial resources and to assess their performance.
The Group manufactures and sells various fragrances and flavors. Local corporations in China, Malaysia, and the
USA are in charge of their manufacturing and sales, and a local corporation in Indonesia is in charge of its sales.
The Company is responsible for other countries and Japan. The local corporations are independent operation units,
and based on the global strategy formulated by the Company, they draft a strategic plan for the respective region
and carry out business activities. Accordingly, the Group consists of segments by the location of each company thatis based on manufacturing and sales structures, and there are three reporting segments, Japan, Asia, and the USA.
In the fiscal year ended September 30, 2021, T. HASEGAWA U.S.A., INC., a consolidated subsidiary of theCompany, acquired all of the shares of MISSION FLAVORS & FRAGRANCES, INC. (Location: California,
U.S.A.), and accordingly, MISSION FLAVORS & FRAGRANCES, INC. is included under the reporting segmentof the USA.
2. Calculation method of net sales, profit or loss, assets, and other items for each reportable segment
The accounting method used for reportable segments is in accordance with the accounting policies adopted for
preparing consolidated financial statements.
Profit of each reportable segment is an amount based on operating profit. Inter-segment sales or transfers are basedon current market prices.
3. Information on net sales, profit or loss, assets, and other items for each reportable segment
Fiscal year ended September 30, 2020 (from October 1, 2019 to September 30, 2020)
Reportable segment

Japan

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

36,130
700

Total

Asia

USA

Total

(Millions of yen)Amountrecorded on
Adjustment
the(Note 1)
consolidated(Note 2)
financialstatements(Note 3)

7,923
173

6,138
115

50,192
989

–
(989)

50,192–50,192

36,831

8,096

6,254

51,181(989)

Segment profit

3,729

1,029

549

5,307

48

5,356

Segment assets

105,132

17,0808,867

131,080(17,635)

113,445

1,959
10
0

534
90
4

374
4
5

2,868
105
9

–
(9)
(6)

2,868
95
3

1,507

456

1,516

3,481

–

3,481

Other items
Depreciation
Interest income
Interest expenses
Increase in property, plant andequipment and intangible assets
Notes:

1.

The adjustments on segment profit of ¥48 million include ¥48 million of inter-segment transactions, ¥3 million ofadjustments for inventories related to inter-segment transactions, and negative ¥3 million for others.
2. The adjustments for segment assets of negative ¥17,635 million include negative ¥17,464 million of adjustments for intersegment transaction and corporate assets, and negative ¥171 million of inventories related to inter-segment transactions, and¥0 million for others.
3. Segment profit is adjusted to operating profit in the consolidated financial statements.

16

Fiscal year ended September 30, 2021 (from October 1, 2020 to September 30, 2021)(Millions of yen)Amountrecorded on
Adjustment
the(Note 1)
consolidated(Note 2)
financialstatements(Note 3)

Reportable segment

Japan

Asia

USA

Total

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

36,710
660

9,863
155

9,181
105

55,755
921

–
(921)

55,755–

Total

37,37010,0189,287

56,676(921)

55,755

Segment profit

3,930

2,218

662

6,810

48

6,859

Segment assets

106,574

20,80924,669152,053(31,107)

120,945

1,921
37
1

575
116
6

689
1
3

3,186
155
11

–
(37)
(2)

3,186
117
8

1,521

436

809

2,767

–

2,767

Other items
Depreciation
Interest income
Interest expenses
Increase in property, plant andequipment and intangible assets
Notes:

1.

The adjustments on segment profit of ¥48 million include ¥57 million of inter-segment transactions, negative ¥4 million ofadjustments for inventories related to inter-segment transactions, and negative ¥3 million for others.
2. The adjustments for segment assets of negative ¥31,107 million include negative ¥30,949 million of adjustments for intersegment transaction and corporate assets, and negative ¥158 million of inventories related to inter-segment transactions, and¥0 million for others.
3. Segment profit is adjusted to operating profit in the consolidated financial statements.

[Related information]
Fiscal year ended September 30, 2020 (from October 1, 2019 to September 30, 2020)
1. Information for each product or service(Millions of yen)Fragrance

FlavorSales to external customers

7,032

Total
43,15950,192

2. Information for each region(1) Net sales(Millions of yen)
Japan

China
32,448

Note:

Asia
6,884

USA
4,687

Net sales are classified by country or region based on customers’ location.

17

Others
5,588

Total
584

50,192

(2) Property, plant and equipment(Millions of yen)
Japan

China
19,462

Note:

Asia

USA

5,691

913

Others
3,277

Total
–

29,345

Property, plant and equipment are classified by country or region based on their location.

3. Information for each of main customers
Not applicable.
Fiscal year ended September 30, 2021 (from October 1, 2020 to September 30, 2021)
1. Information for each product or service(Millions of yen)Fragrance

FlavorSales to external customers

7,640

Total
48,11555,755

2. Information for each region(1) Net sales(Millions of yen)
Japan

China
32,671

Note:

Asia
8,776

USA
5,092

Others
8,275

Total
938

55,755Net sales are classified by country or region based on customers’ location.

(2) Property, plant and equipment(Millions of yen)
Japan

China
19,018

Note:

Asia
6,180

USA
967

Others3,928

Property, plant and equipment are classified by country or region based on their location.

3. Information for each of main customers
Not applicable.
[Information on impairment losses on non-current assets for each reportable segment]
Fiscal year ended September 30, 2020 (from October 1, 2019 to September 30, 2020)
Not applicable.

Fiscal year ended September 30, 2021 (from October 1, 2020 to September 30, 2021)
Not applicable.

18

Total
–

30,094

[Information on amortization and unamortized balance of goodwill for each reportable segment]
Fiscal year ended September 30, 2020 (from October 1, 2019 to September 30, 2020)(Millions of yen)
Asia

Japan

USA

OthersTotal

Amortization in thefiscal year

–

135

–

–

135

Unamortized balanceat end of the fiscal
year

–

572

–

–

572

Fiscal year ended September 30, 2021 (from October 1, 2020 to September 30, 2021)(Millions of yen)
Asia

Japan

USA

OthersTotal

Amortization in thefiscal year

–

137

434

–

572

Unamortized balanceat end of the fiscal
year

–

459

5,583

–

6,043

[Information about gain on bargain purchase for each reportable segment]
Fiscal year ended September 30, 2020 (from October 1, 2019 to September 30, 2020)
Not applicable.

Fiscal year ended September 30, 2021 (from October 1, 2020 to September 30, 2021)
Not applicable.

(Per share information)(Yen)
Fiscal year ended September 30, 2020

Fiscal year ended September 30, 2021

Net assets per share

2,217.96

Net assets per share

2,385.69

Earnings per share

122.79Earnings per share

163.63

Diluted earnings per share

122.34

Diluted earnings per share

163.00Note:

Basis for calculation of earnings per share and diluted earnings per share is as follows.

19

Fiscal year ended
September 30, 2020

Fiscal year ended
September 30, 2021

Earnings per share
Profit attributable to owners of parent (Millions of yen)

5,090

6,763

Amounts not attributable to common shareholders(Millions of yen)––

Profit attributable to owners of parent pertaining tocommon shares (Millions of yen)

5,090

6,763

41,458,341

41,335,042––

Increase in the number of common shares (Shares)

154,859

159,593[Of the above, share acquisition rights (Shares)][154,859][159,593]

Average number of shares during the period (Shares)
Diluted earnings per share
Adjustments to profit attributable to owners of parent(Millions of yen)

(Significant subsequent event)Not applicable.

20