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, 2022
(Based on Japanese GAAP)
November 11, 2022
Company name:T. HASEGAWA CO., LTD.
Stock exchange listing: Tokyo
Stock code:
4958
URL https://www.t-hasegawa.co.jp/
Representative:
President & CEO
Takao Umino
Inquiries:
Director & Senior Executive Vice President Minoru Nakamura
TEL 03-3241-1151
Scheduled date of ordinary general meeting of shareholders:
December 22, 2022
Scheduled date to file Securities Report:
December 23, 2022
Scheduled date to commence dividend payments:
December 6, 2022
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, 2022 (from October 1, 2021 to September 30, 2022)(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, 2022
62,398
11.9
8,051
17.4
9,075
21.6
8,007
18.4
Year ended September 30, 2021
55,755
11.1
6,859
28.1
7,466
27.4
6,763
32.9
Note: Comprehensive income

Year ended September 30, 2022
Year ended September 30, 2021
Earnings per share[69.3%][163.5%]

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
193.977.7
7.1
12.9
163.00
7.1
6.4
12.3

Diluted earnings per
share

Yen
194.65163.63

Year ended September 30, 2022
Year ended September 30, 2021

¥14,713 million¥8,688 million

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

Year ended September 30, 2022
Year ended September 30, 2021¥– million¥– million(2) Consolidated financial position
Total assets
As of September 30, 2022
As of September 30, 2021
Reference: Equity

Net assets

Millions of yen
133,553
120,945

As of September 30, 2022
As of September 30, 2021

Millions of yen
111,017
98,301Equity ratio

Net assets per share
%
82.9
81.1

Yen
2,692.34
2,385.69¥110,777 million¥98,051 million(3) Consolidated cash flows

Year ended September 30, 2022
Year ended September 30, 2021

Cash flows fromoperating activities
Millions of yen
8,001
9,980

Cash flows frominvesting activities
Millions of yen
1,208(14,130)

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(2,721)
27,425(2,733)
18,863

2. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended September 30, 2021
Year ended September 30, 2022
Year ending September 30, 2023
(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

%

%

–
–

22.00
29.00

–
–

33.00
32.00

55.00
61.00

2,268
2,509

33.6
31.3

2.4
2.4

–

30.00

–

31.00

61.00

40.7

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 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
66,0005.8
7,000 (13.1)
7,450 (17.9)
6,170 (22.9)
149.96
4. Notes(1) Changes in significant subsidiaries during the year ended September 30, 2022
(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:
Yes
Changes in accounting policies due to other reasons:No
Changes in accounting estimates:

No
Restatement of prior period financial statements:
No
Note: For details, please refer to “Changes in accounting policies” under “3. Consolidated financial statements and significant notes thereto,(5) Notes to consolidated financial statements” on page 15 of the Attached Material.
(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, 2022

42,708,154 shares

As of September 30, 2021

42,708,154 shares

1,562,744 shares

As of September 30, 2021

1,608,431 shares

41,134,938 sharesYear ended September 30, 2021

41,335,042 shares

Number of treasury shares at the end of the period
As of September 30, 2022
Average number of shares during the period
Year ended September 30, 2022

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 20 of the Attached Material.

Reference: Summary of non-consolidated financial results
1. Non-consolidated financial results for the year ended September 30, 2022 (from October 1, 2021 to September 30, 2022)(1) Non-consolidated operating results
Percentages indicate year-on-year changes
Net salesYear ended September 30, 2022
Year ended September 30, 2021

Operating profit

Millions of yen
39,17437,362%4.9
1.5

Earnings per share
Yen
211.50116.59Year ended September 30, 2022
Year ended September 30, 2021

Millions of yen
5,151
3,891

%
32.4
5.1

Ordinary profit
Millions of yen
8,992
4,449

Profit%102.1(13.9)

Millions of yen
8,700
4,819

%
80.5
(0.0)

Diluted earnings
per shareYen
210.76116.14(2) Non-consolidated financial position
Total assets
As of September 30, 2022
As of September 30, 2021
Reference: Equity

Net assets

Millions of yen
107,980
106,168

As of September 30, 2022
As of September 30, 2021

Millions of yen
89,56786,968Equity ratio

Net assets per share
%
82.7
81.7

Yen
2,171.02
2,109.95¥89,327 million¥86,718 million

2. Forecast of non-consolidated financial results for the year ending September 30, 2023 (from October 1, 2022 to September 30, 2023)
Percentages indicate year-on-year changes
Net sales
Full year

Millions of yen
39,700Operating profit

Ordinary profit

Profit% Millions of yen% Millions of yen% Millions of yen%
1.3
4,020 (22.0)
4,450 (50.5)
4,080 (53.1)

Earnings per share
Yen
99.16

* 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 Tuesday, November
29, 2022.
Materials for the financial results meeting will be disclosed on TDnet 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(6) Accident at Itakura Facility ................................................................................................................................... 5
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(Changes in accounting policies)......................................................................................................................... 15(Segment information, etc.) ................................................................................................................................. 16(Per share information) ...................................................................................................................................... 200(Significant subsequent event) .......................................................................................................................... 211

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, 2022 continued to present an uncertain outlook,fueled by concerns regarding the prolonged impact of the novel coronavirus disease (COVID-19), the prolonged
Ukraine situation, soaring raw material prices and resource prices, and the impact of the sharp trajectory of a
weaker Japanese yen on economic activities in Japan and overseas.
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.
In addition, earnings performance of US-based MISSION FLAVORS & FRAGRANCES, INC. (“MISSION”),
which newly became a consolidated subsidiary in December 2020, contributed to consolidated operating results of
the Group for the full period (for the previous fiscal year, results were recorded for the nine months of January to
September of 2021).
Furthermore, Thailand subsidiary T. HASEGAWA (SOUTHEAST ASIA) CO., LTD. and Taiwan subsidiary T.
HASEGAWA FLAVOURS AND FRAGRANCES (TAIWAN) CO., LTD., which were non-consolidated
subsidiaries, have newly been included under the scope of consolidation effective from the fiscal year ended
September 30, 2022, due to increased materiality for the Group.
In the fiscal year ended September 30, 2022, net sales increased year on year, amounting to ¥62,398 million (up11.9% year on year). The Company’s non-consolidated net sales increased by 4.9% year on year. As for net sales ofmajor overseas consolidated subsidiaries, net sales of subsidiaries in the USA (including MISSION) increased by
32.3% (up 14.3% on a local currency basis), those of subsidiaries in China increased by 13.0% year on year (down
1.4% on a local currency basis), and those of subsidiaries in Malaysia increased by 36.0% (up 22.7% on a local
currency basis).
By division, net sales of the Flavor Division increased by 13.0% year on year, amounting to ¥54,359 million, due
mainly to increased net sales from the Company’s non-consolidated financial results and our U.S. subsidiaries(including MISSION), and the new addition of our Thailand subsidiary and Taiwan subsidiary to the scope of
consolidation.
Net sales of the Fragrance Division increased by 5.2% year on year, amounting to ¥8,039 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 an increase in personnel
expenses and amortization of goodwill of MISSION, etc., operating profit increased by ¥1,192 million (17.4%)
year on year to ¥8,051 million due largely to an increase in gross profit resulting from the increase in net sales.
Ordinary profit increased by ¥1,609 million (21.6%) year on year to ¥9,075 million due mainly to an increase inoperating profit and an increase in foreign exchange gains. As a result, profit attributable to owners of parent
increased by ¥1,243 million (18.4%) compared to the fiscal year ended September 30, 2021 to ¥8,007 million.

(2) Overview of financial position for the fiscal year
(Current assets)
Due largely to increases in securities, and raw materials and supplies by ¥4,999 million and ¥2,568 million,
respectively, compared to the fiscal year ended September 30, 2021, current assets increased by ¥10,747 million
compared to the fiscal year ended September 30, 2021 to ¥65,989 million.
(Non-current assets)
Property, plant and equipment increased by ¥3,657 million compared to the fiscal year ended September 30, 2021
to ¥33,752 million, mainly due to respective increases of ¥3,615 million in buildings and structures, net, and ¥757
million in machinery, equipment and vehicles, net, and a decrease of ¥1,370 million in construction in progress.

2Intangible assets increased by ¥3,481 million to ¥20,194 million, mainly due to respective increases of ¥771
million in goodwill and ¥2,165 million in customer relationship resulting from yen depreciation, despite theprogress of amortization in foreign currencies.
Investments and other assets decreased by ¥5,278 million compared to the fiscal year ended September 30, 2021 to¥13,616 million due mainly to sale of investment securities.
(Current liabilities)
Current liabilities increased by ¥1,727 million compared to the fiscal year ended September 30, 2021 to ¥13,331
million, due largely to an increase in notes and accounts payable - trade by ¥1,211 million.
(Non-current liabilities)
Non-current liabilities decreased by ¥1,835 million compared to the fiscal year ended September 30, 2021 to¥9,204 million, due largely to a ¥1,541 million decrease in deferred tax liabilities due mainly to sale of investment
securities.
(Net assets)
Compared to the fiscal year ended September 30, 2021, while retained earnings and foreign currency translation
adjustment increased by ¥5,790 million and ¥10,246 million, respectively, valuation difference on available-forsale securities decreased by ¥3,615 million. Due largely to these factors, total net assets increased by ¥12,715
million compared to the fiscal year ended September 30, 2021 to ¥111,017 million.

(3) Overview of cash flows for the fiscal year
Cash and cash equivalents (“cash”) in the fiscal year ended September 30, 2022 increased by ¥8,562 million (adecrease by ¥6,497 million in the fiscal year ended September 30, 2021) compared to September 30, 2021 to¥27,425 million.
The respective cash flow positions for the fiscal year ended September 30, 2022, and the factors thereof are as
follows.
(Cash flows from operating activities)
Net cash provided by operating activities was ¥8,001 million (compared with ¥9,980 million provided for theprevious fiscal year). The main factors were income taxes paid of ¥3,228 million, and loss (gain) on sale andvaluation of investment securities of ¥2,230 million, and an increase in inventories of ¥1,795 million while there
were profit before income taxes of ¥11,267 million and depreciation of ¥3,406 million.
(Cash flows from investing activities)
Net cash provided by investing activities was ¥1,208 million (compared with ¥14,130 million used for the previous
fiscal year). The main factors were payments into time deposits of ¥1,156 million and proceeds from withdrawal oftime deposits of ¥3,934 million, and purchase of property, plant and equipment of ¥3,602 million and proceedsfrom sale of investment securities of ¥2,599 million.
(Cash flows from financing activities)
Net cash used in financing activities was ¥2,721 million (compared with ¥2,733 million used for the previous fiscal
year). The main factor was dividends paid of ¥2,548 million.

3

(Reference) Trends in cash flow indicators
Fiscal year ended
September 30,
2019

Fiscal year ended
September 30,
2020

Fiscal year ended
September 30,
2021

Fiscal year ended
September 30,
2022

Equity ratio (%)

79.2

81.1

81.1

82.9

Market value equity ratio (%)

72.6

77.3

90.7

92.4

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

0.00

1.63

3.31

3.86

13,905.7

2,059.7

1,109.2

1,826.6

Interest coverage ratio (times)
Equity ratio
Market value equity ratio

:
:
:
:

Ratio of cash flow to interest-bearing debt
Interest coverage ratio
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
The outlook for the Japanese economy is expected to remain uncertain fueled by concerns regarding the prolonged
Ukraine situation, soaring raw material prices and resource prices, the sharp trajectory of a weaker Japanese yen,
and rising commodity prices with no end in sight to the COVID-19 pandemic.
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 changes in the business environment and unforeseen circumstancesand seek future growth of the Group, it is essential to further strengthen the global expansion while working toincrease the share in the Japanese market where maturation is progressing in step with the falling birthrate and theaging population. The Group will efficiently invest managerial resources into the USA as our priority region as
well as the Asian region, centering on China and Southeast Asia, to accurately capture the growth potential of themarkets, consumer palatability, etc. and plan and promote a business strategy in line with changes in the businessenvironment. In addition, the Group will implement investments to achieve sustainable growth into the future,aiming to enhance the business performance in overseas markets.
The Group plans to achieve consolidated net sales at ¥66,000 million (up 5.8% year on year), operating profit at¥7,000 million (down 13.1% year on year), ordinary profit at ¥7,450 million (down 17.9% year on year), and profit
attributable to owners of parent at ¥6,170 million (down 22.9% year on year) for the fiscal year ending September
30, 2023.

(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, 2022, the Company decided to pay an annual
dividend of ¥61 per share (of which, interim dividend of ¥29). As a result, the payout ratio on a consolidated basis
for the fiscal year ended September 30, 2022 is 31.3%.
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 11, 2022

1,193

29

Resolution at a Board of Directors meeting held on
November 11, 2022

1,316

32

With regard to the dividend for the next fiscal year, the Company plans to pay an annual dividend of ¥61 per share (of which, interim
dividend of ¥30).

(6) Accident at Itakura Facility
On September 15, 2022, a serious accident occurred at the Itakura Facility of the Company’s Fukaya Production
Center, resulting in the death of an employee and injuries of two other employees. The Company deeply regrets
that such an accident occurred. The Company sincerely prays for the repose of the soul of the deceased employee
and hopes for the speedy recovery of the injured employees. The Company would also like to express its deepest
apologies for any inconvenience and concern caused to the authorities concerned, its shareholders, its customers,
and many others.
In response to the accident, the Company established an Accident Investigation Committee, which worked toinvestigate the causes of the accident and formulate measures to prevent its recurrence. Details of the investigation
into the cause of the accident by the Accident Investigation Committee and its recommendations for measures toprevent recurrence were announced on November 11, 2022 as “An Accident Resulting in the Death of an Employee
of Our Company (Causes of accident, measures to prevent recurrence, and operating status)”.
The Company takes the accident, which caused human casualties, very seriously, and to prevent recurrence of suchan accident from happening again, the Company will promote activities to steadily implement the measures
recommended by the Accident Investigation Committee, and to establish an effective management system.

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
Notes receivable - trade
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, 2021

As of September 30, 2022

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

20,351–
2,444
16,277
8,999
7,750
78
9,013
1,099
(26)
65,98940,402(24,425)
15,97735,691(31,542)
4,148
7,784
(6,711)
1,072
6,829
2,067
30,09445,747(26,154)
19,59337,501(32,595)
4,905
8,380
(7,220)
1,159
7,396
696
33,752

6,043
9,711
958
16,713

6,815
11,877
1,502
20,194

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

12,589
619
18
420
(30)
13,616
67,563
133,553(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, 2021

As of September 30, 2022

5,000
1,653
1,550

6,211
1,694
1,632

59

74

3,340
11,604

3,718
13,331

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

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

5,364
7,305
76,107(2,630)86,1475,364
7,513
81,898(2,555)92,22010,272
1,852(221)
11,903250
98,301
120,945

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

(2) Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
September 30, 2021
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
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 - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

9

Fiscal year ended
September 30, 2022

55,755
33,106
22,64862,39836,77625,622

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

1,261
7,119
1,046
74
574
1,474
1,423
824
3,771
17,570
8,051

117
274
147
116
655

163
256
518
174
1,112

8
39
48
7,466

7
80
88
9,075

2,265
2,265

2,230
2,230

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

38
38
11,267
3,099
107
3,207
8,060
53
8,007

Consolidated statements of comprehensive income(Millions of yen)
Fiscal year ended
September 30, 2021
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, 2022

6,763

8,060

(1,279)
3,169
35
1,925
8,688

(3,615)
10,24622
6,653
14,713

8,688

14,660–53

(3) Consolidated statements of changes in equity
Fiscal year ended September 30, 2021 (from October 1, 2020 to September 30, 2021)(Millions of yen)
Shareholders’ equity
Capital surplus

5,364

7,298

71,169(1,820)82,012

5,364

7,298

71,169(1,820)82,012

Balance at beginning of period

Retained earnings

Treasury shares

Total shareholders’equityShare capital

Cumulative effects of changes
in accounting policies
Restated balance
Changes during period
Change in scope of
consolidation
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

Change in ownership interest ofparent due to transactions with
non-controlling interests
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

Share acquisitionrightsTotal net assets

228

92,218

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

Cumulative effects of changes
in accounting policies
Restated balance–
11,551(1,316)

(256)

9,978

228

92,218Changes during period
Change in scope of
consolidation–

Dividends of surplus(1,825)

Profit attributable to owners ofparent

6,763

Purchase of treasury shares(846)

Disposal of treasury shares

43

Change in ownership interest ofparent due to transactions with
non-controlling interests
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

98,30111

Fiscal year ended September 30, 2022 (from October 1, 2021 to September 30, 2022)(Millions of yen)
Shareholders’ equity

Balance at beginning of period

Share capital

Capital surplus

5,364

7,305

Retained earnings
76,107

Cumulative effects of changes
in accounting policies
Restated balance

Treasury shares(2,630)

(1)
5,364

7,305

Total shareholders’equity86,147(1)

76,106(2,630)86,146

Changes during period
Change in scope of
consolidation

334

334

Dividends of surplus(2,549)(2,549)Profit attributable to owners ofparent

8,007

8,007

Purchase of treasury shares
Disposal of treasury shares

1

Change in ownership interest ofparent due to transactions with
non-controlling interests

(0)

(0)

75

76

206

206

Net changes in items other thanshareholders’ equity–

Total changes during period
Balance at end of period

–

207

5,792

74

6,074

5,364

7,513

81,898(2,555)92,220

Accumulated other comprehensive income

Balance at beginning of period

Valuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

10,272

1,852

Total
Remeasurements accumulatedof definedotherbenefit plans comprehensive
income(221)

11,903

Shareacquisitionrights250

Cumulative effects of changes
in accounting policies
Restated balance

Total net assets

98,301(1)

10,272

1,852

(221)

11,903250

98,299Changes during period
Change in scope of
consolidation

334

Dividends of surplus(2,549)Profit attributable to owners ofparent

8,007

Purchase of treasury shares(0)

Disposal of treasury shares

76

Change in ownership interest ofparent due to transactions with
non-controlling interests

206

Net changes in items other thanshareholders’ equity(3,615)

10,246

22

6,653

(10)

6,642

Total changes during period(3,615)

10,246

22

6,653

(10)

12,717

Balance at end of period

6,657

12,098(199)

18,556239

111,01712

(4) Consolidated statements of cash flows(Millions of yen)
Fiscal year ended
September 30, 2021
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 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
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, 2022

9,692
3,186
572

11,267
3,406
824

(19)

(417)

65
83

65
(47)

(14)

14

7
242
(3)
(391)
8
(62)
(0)
38

(20)
154
3
(420)
7
(308)
7
38

(2,265)(2,230)(1,087)
584
(7)
2
649
11,284398(8)(1,693)
9,980

(401)
(1,795)
574
(67)
145
10,801433(4)(3,228)8,001(3,724)
3,146(2,572)
1(1,156)
3,934(3,602)
13

(26)

(16)

(166)
(138)
2,235
(12,885)(14,130)

(523)
(41)
2,599
–
1,208

(Millions of yen)
Fiscal year ended
September 30, 2021
Cash flows from financing activities
Purchase of treasury shares
Proceeds from sale of treasury shares
Repayments of lease liabilities
Dividends paid
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
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
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period

14

Fiscal year ended
September 30, 2022

(846)
0
(61)
(1,824)

(0)
0
(103)
(2,548)–(68)(2,733)(2,721)

385

1,559

(6,497)25,3608,047
18,863–515

18,86327,425(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)
T. HASEGAWA (SOUTHEAST ASIA) CO., LTD. and T. HASEGAWA FLAVOURS AND FRAGRANCES(TAIWAN) CO., LTD., which were non-consolidated subsidiaries, are included under the scope of consolidation
during the current fiscal year, due to increased materiality.
(Changes in accounting policies)(1) Application of Accounting Standard for Revenue Recognition, etc.
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31,2020) and relevant ASBJ regulations from the beginning of the fiscal year ended September 30, 2022, and it hasrecognized revenue at the time the control of promised goods or services is transferred to the customer at the amount
expected to be received upon exchange of said goods or services.
As a result of this application, the previous treatment of the portion of the consideration payable to customers as salescommission that was previously recorded as selling, general and administrative expenses has been changed to themethod of deducting such payables from the transaction price. Furthermore, for transactions with variableconsideration, when that uncertainty is resolved after the fact, it has been included in the transaction price only forthe portion of revenue highly unlikely to be significantly reduced. Furthermore, for subcontract processing
transactions with supply of materials for value that are repurchase agreements treated as financial transactions, theCompany continues to recognize the outstanding supplies held by the subcontractor as inventories. At the same time
the amount equivalent to the outstanding supplies held by the subcontractor are recognized as “Liabilities for
subcontract processing transactions with supply of materials for value,” included in “Other” under current liabilities.
Furthermore, the Company has applied the alternative treatment stipulated in paragraph 98 of the “Implementation
Guidance on Accounting Standard for Revenue Recognition” and recognizes revenue at the time of shipment when
the period from the time of shipment until the time that control of the merchandise or finished goods is transferredto the customer is a typical period in cases of domestic sale of merchandise and finished goods in Japan.
The application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations is subject to thetransitional treatment provided for in the proviso to paragraph 84 of the Accounting Standard for Revenue
Recognition. The cumulative effect of the retrospective application, assuming the new accounting policy had been
applied to periods prior to the beginning of the fiscal year ended September 30, 2022 was added to or deducted fromthe opening balance of retained earnings of the fiscal year ended September 30, 2022, and thus the new accounting
policy was applied from such opening balance; provided, however, that the new accounting policy was not
retrospectively applied to contracts for which nearly all the revenue amounts had been recognized according to theprevious treatment in periods prior to the beginning of the fiscal year, by applying the method provided for inparagraph 86 of the Accounting Standard for Revenue Recognition. Furthermore, by applying the method set forthin item (1) of the supplementary provisions of paragraph 86 of the Accounting Standard for Revenue Recognition,
modifications to contracts carried out prior to the beginning of the fiscal year were accounted for based on thecontractual terms after all contract modifications were reflected. Consequently, this cumulative effect was added toor deducted from the opening balance of retained earnings of the fiscal year.
As a result, the opening balance of retained earnings of the fiscal year decreased by ¥1 million. The effect on the
consolidated financial statements for the fiscal year ended September 30, 2022 was immaterial.
Due to the application of the Accounting Standard for Revenue Recognition and relevant ASBJ regulations, “Notes
and accounts receivable - trade” under current assets of the consolidated balance sheet as of September 30, 2021 has
been included in “Notes receivable - trade” and “Accounts receivable - trade” under current assets from theconsolidated balance sheet as of September 30, 2022.

15

In accordance with the transitional treatment provided for in paragraph 89-2 of the Accounting Standard for Revenue
Recognition, figures for the previous fiscal year have not been restated in accordance with the new approach topresentation. Furthermore, the information on disaggregation of revenue from contracts with customers for theprevious fiscal year has not been disclosed as allowed by the transitional treatment provided for in paragraph 89-3of the Accounting Standard for Revenue Recognition.
(2) Application of Accounting Standard for Fair Value Measurement, etc.
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, July 4,2019) and relevant ASBJ regulations from the beginning of the fiscal year ended September 30, 2022, and it hasapplied the new accounting policy provided for by the Accounting Standard for Fair Value Measurement, etc.
prospectively in accordance with the transitional measures provided for in paragraph 19 of the Accounting Standard
For Fair Value Measurement, and paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ
Statement No. 10, July 4, 2019). There is no effect on the consolidated financial statements.
(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 local corporations in Indonesia, Thailand, and Taiwan are
in charge of their sales. The Company is responsible for all other countries and Japan. The local corporations are
independent operation units, and based on the global strategy formulated by the Company, they draft a strategicplan for the respective region and carry out business activities. Accordingly, the Group consists of segments by thelocation of each company that is based on manufacturing and sales structures, and there are three reporting
segments, Japan, Asia, and the USA. Following the new addition of T. HASEGAWA (SOUTHEAST ASIA) CO.,LTD. and T. HASEGAWA FLAVOURS AND FRAGRANCES (TAIWAN) CO., LTD., which were nonconsolidated subsidiaries, to the scope of consolidation during the current fiscal year, those two companies areincluded in the reportable segment “Asia.”
2. Calculation method of net sales, profit or loss, assets, and other items for each reportable segment
The methods of accounting for reporting segments are in accordance with the accounting policies adopted toprepare the 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.
As described in “Changes in accounting policies,” the Company has applied the Accounting Standard for Revenue
Recognition and relevant ASBJ regulations beginning with the consolidated financial statements for the current
fiscal year, and changed the accounting treatment for revenue recognition. Accordingly, the Company has changed
the method of measuring profit or loss of operating segment. The effect of this change on the consolidated financial
statements for the current fiscal year is immaterial.
Segment information for the previous fiscal year is calculated based on the accounting standard before the change.

16

3. Information on net sales, profit or loss, assets, and other items for each reportable segment and information on
disaggregation of revenue
Fiscal year ended September 30, 2021 (from October 1, 2020 to September 30, 2021)
Reportable segment

Japan

Asia

USA

Total

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

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.

17

Fiscal year ended September 30, 2022 (from October 1, 2021 to September 30, 2022)(Millions of yen)Amountrecorded on
Adjustment
the(Note 1)
consolidated(Note 2)
financialstatements(Note 3)

Reportable segment

Japan

Asia

USA

Total

Net sales
Flavor and fragrance business(Note 4)36,74813,501

12,14862,398–62,398

Revenue from contracts withcustomers

36,74813,501

12,14862,398–62,398

Sales to external customers
Inter-segment sales or transfers

36,7482,434

13,501
196

12,148
118

62,3982,749–(2,749)62,398–

Total

39,183

13,697

12,267

65,147(2,749)62,398Segment profit

5,164

2,431

511

8,107

(55)

8,051

Segment assets

108,376

25,66632,045

166,088(32,535)

133,553

1,722
41
2

716
161
6

967
0
10

3,406
204
19

–
(41)
(11)

3,406
163
7

1,636

651

2,017

4,306

–

4,306

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

1.

The adjustments on segment profit of negative ¥55 million include ¥80 million of inter-segment transactions, negative ¥131
million of adjustments for inventories related to inter-segment transactions, and negative ¥3 million for others.
2. The adjustments for segment assets of negative ¥32,535 million include negative ¥32,238 million of adjustments for intersegment transaction and corporate assets, and negative ¥296 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.
4. 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.

[Related information]
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

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

18

Total
938

55,755

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

China
19,018

Note:

Asia

USA

6,180

967

Others

Total

3,928

–

30,094

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, 2022 (from October 1, 2021 to September 30, 2022)
1. Information for each product or service(Millions of yen)Fragrance

FlavorSales to external customers

8,039

Total
54,35962,398

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

China
33,787

Note:

Asia
9,785

USA
6,703

Others
10,821

Total
1,300

62,398Net sales are classified by country or region based on customers’ location.

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

China
18,474

Note:

Asia
7,246

USA
1,118

Others6,911

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, 2021 (from October 1, 2020 to September 30, 2021)
Not applicable.
Fiscal year ended September 30, 2022 (from October 1, 2021 to September 30, 2022)
Not applicable.

19

Total
–

33,752

[Information on amortization and unamortized balance of goodwill for each reportable segment]
Fiscal year ended September 30, 2021 (from October 1, 2020 to September 30, 2021)(Millions of yen)
Japan

Asia

USA

OthersTotal

Amortization in thefiscal year

–

137

434

–

572

Unamortized balanceat end of the fiscal
year

–

459

5,583

–

6,043

Fiscal year ended September 30, 2022 (from October 1, 2021 to September 30, 2022)(Millions of yen)
Japan

Asia

USA

OthersTotal

Amortization in thefiscal year

–

152

671

–

824

Unamortized balanceat end of the fiscal
year

–

371

6,443

–

6,815

[Information about gain on bargain purchase for each reportable segment]
Fiscal year ended September 30, 2021 (from October 1, 2020 to September 30, 2021)
Not applicable.
Fiscal year ended September 30, 2022 (from October 1, 2021 to September 30, 2022)
Not applicable.
(Per share information)(Yen)
Fiscal year ended September 30, 2021 (from October 1, 2020 to
September 30, 2021)

Fiscal year ended September 30, 2022 (from October 1, 2021 toSeptember 30, 2022)

Net assets per share

2,385.69

Net assets per share

2,692.34

Earnings per share

163.63

Earnings per share

194.65

Diluted earnings per share

163.00

Diluted earnings per share

193.97

Note:

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

20

Fiscal year ended September 30,
2021 (from October 1, 2020 to
September 30, 2021)

Fiscal year ended September 30,
2022 (from October 1, 2021 toSeptember 30, 2022)

6,763

8,007

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

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

6,763

8,007

41,335,042

41,134,938––

Increase in the number of common shares (Shares)

159,593

144,390[Of the above, share acquisition rights (Shares)][159,593][144,390]

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

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.

21