Translation
Notice: This document is an excerpt translation of the original Japanese document and is only for reference purposes. In the event of any
discrepancy between this translated document and the original Japanese document, the latter shall prevail.

Summary of Consolidated Financial Results
for the Year Ended September 30, 2017
(Based on Japanese GAAP)
November 10, 2017
Company name:T. HASEGAWA CO., LTD.

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

URL

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

President & COO
Executive Vice President, Corporate

Planning Division General Manager
Scheduled date of ordinary general meeting of shareholders:

Takao Umino
Minoru Nakamura

TEL

03-3241-1151

December 21, 2017

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

December 22, 2017
December 6, 2017

Preparation of supplementary material on financial results:
Holding of financial results meeting:

Yes
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, 2017 (from October 1, 2016 to September 30, 2017)(1) Consolidated operating results
Net salesYear ended September 30, 2017
Year ended September 30, 2016
Note: Comprehensive income

Millions of yen
48,00147,591

Operating profit
%
0.9
0.8

Millions of yen
5,606
5,160

%
8.6
18.6

Percentages indicate year-on-year changes
Profit attributable toOrdinary profit
owners of parent
Millions of yen% Millions of yen
%
6,101
18.1
4,299
18.2
5,164
6.4
3,637
19.5

Year ended September 30, 2017

¥8,937 million [413.9%]

Year ended September 30, 2016

¥1,739 million [(71.9)%]

Earnings per share

Profit attributable toOrdinary profit/total Operating profit/net
owners ofassetssales
parent/equity
Yen
%
%
%
101.19
5.1
5.8
11.7
85.67
4.6
5.1
10.8

Diluted earnings per
share

Yen
101.3585.74

Year ended September 30, 2017
Year ended September 30, 2016

Reference: Investment profit (loss) on equity method Year ended September 30, 2017¥– million

Year ended September 30, 2016¥– million(2) Consolidated financial position
Total assets
As of September 30, 2017
As of September 30, 2016
Reference: Equity

Net assets

Millions of yen
109,836
100,853

Millions of yen
87,52879,939As of September 30, 2017¥87,438 million

As of September 30, 2016

¥79,902 million

Equity ratio

Net assets per share
%
79.6
79.2

Yen
2,060.94
1,883.29(3) Consolidated cash flows

Year ended September 30, 2017
Year ended September 30, 2016

Cash flows fromoperating activities
Millions of yen
4,860
6,666

Cash flows frominvesting activities
Millions of yen(9,456)(3,131)

1

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(1,519)16,511(1,295)22,313

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

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

Total

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

–
–

15.00
16.00

–
–

17.00
19.00

32.00
35.00

1,357
1,484

37.3
34.5

1.7
1.8

–

17.00

–

18.00

35.00

Year ended September 30, 2016
Year ended September 30, 2017
Year ending September 30, 2018
(Forecast)

34.4

3. Forecast of consolidated financial results for the year ending September 30, 2018 (from October 1, 2017 to September 30, 2018)
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
51,600
7.5
5,880
4.9
6,210
1.8
4,320
0.5
101.82
4. Notes(1) Changes in significant subsidiaries during the year ended September 30, 2017(changes in specified subsidiaries resulting in the change in scope of consolidation):No(2) Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements
Changes in accounting policies due to revisions to accounting standards and other regulations:
Changes in accounting policies due to other reasons:

No
No

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

NoNo(3) Number of issued shares (common shares)
Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2017

42,708,154 shares As of September 30, 2016

42,708,154 shares

Number of treasury shares at the end of the period
As of September 30, 2017

281,719 shares As of September 30, 2016

281,269 shares

42,426,645 shares Year ended September 30, 2016

42,427,005 shares

Average number of shares during the period
Year ended September 30, 20172

Reference: Summary of non-consolidated financial results
1. Non-consolidated financial results for the year ended September 30, 2017 (from October 1, 2016 to September 30, 2017)(1)Non-consolidated financial results
Percentages indicate year-on-year changes
Net salesYear ended September 30, 2017
Year ended September 30, 2016

Millions of yen
36,57236,801

Operating profit% Millions of yen
(0.6)
3,868
2.0
3,528

Earnings per share
Yen
76.03
62.30

Year ended September 30, 2017
Year ended September 30, 2016

Ordinary profit
%
9.6
24.4

Millions of yen
4,363
3,677

Profit%18.6
8.0

Millions of yen
3,225
2,643

%
22.0
27.8

Diluted earnings
per share
Yen
75.91
62.25

(2)Non-consolidated financial position
Total assets
As of September 30, 2017
As of September 30, 2016
Reference: Equity

Net assets

Millions of yen
99,55393,870Millions of yen
79,63675,018

As of September 30, 2017¥79,545 million

As of September 30, 2016

¥74,980 million

Equity ratio

Net assets per share
%
79.9
79.9

Yen
1,874.91
1,767.30

2. Forecast of non-consolidated financial results for the year ending September 30, 2018 (from October 1, 2017 to September 30, 2018)
Percentages indicate year-on-year changes
Net sales

Full year

Millions of yen
38,100Operating profit% Millions of yen
4.2
4,190

Ordinary profit% Millions of yen
8.3
4,570

Profit% Millions of yen
4.7
3,310

Earnings per share
%
2.6

Yen
78.02

* Financial results reports are not required to be audited.
* Proper use of forecasts of financial results, and other special matters
The forward-looking statements, including the earnings forecasts, shown in this document are based on information currently available to theCompany and on certain assumptions deemed to be reasonable. These statements do not purport that the Company pledges to realize suchstatements. Actual results may differ substantially due to various factors.

3

Consolidated financial statements
Consolidated balance sheets(Millions of yen)
As of September 30, 2016

As of September 30, 2017

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

11,33615,312

10,802
16,893

Securities
Merchandise and finished goods

10,999
6,190

5,999
6,530

Work in process
Raw materials and supplies

103
5,152

160
6,004

622
619

632
1,681

Deferred tax assets
Other
Allowance for doubtful accounts

(4)

(8)

50,333

48,69436,27838,159

Accumulated depreciation(19,097)(20,205)

Buildings and structures, net

17,18017,953

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

Machinery, equipment and vehicles

34,582

34,453

Accumulated depreciation(29,949)(29,715)

4,633

4,737

6,035

6,561

Accumulated depreciation(4,928)(5,329)Tools, furniture and fixtures, net

1,106

1,232

6,477

6,492

913

828

30,311

31,245

Goodwill
Customer relationship

1,066
–

3,885
3,033

Other

1,079

890

Total intangible assets

2,145

7,809

17,27025

21,202
24

2
821

18
897

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

Land
Construction in progress
Total property, plant and equipment
Intangible assets

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

(56)

(57)

Total investments and other assets

18,06322,086

Total non-current assets
Total assets

450,52061,141

100,853

109,836(Millions of yen)
As of September 30, 2016

As of September 30, 2017

Liabilities
Current liabilities
Notes and accounts payable - trade

5,661

5,540

5
737

4
839

Provision for bonuses
Provision for directors' bonuses

1,116
58

1,264
67

Other

2,876

2,818

Total current liabilities

10,455

10,534Long-term loans payable
Deferred tax liabilities

116
2,608

4
4,012

Net defined benefit liability
Asset retirement obligations

6,590
70

6,631
70

Long-term accounts payable - other
Other

1,027
46

997
56

Total non-current liabilities

10,458

11,772

20,91422,307

Shareholders' equity
Capital stock

5,364

5,364

Capital surplus
Retained earnings

7,292
59,538

7,292
62,438Treasury shares

(322)

(323)

71,87374,772

9,695(1,367)

12,435468

Remeasurements of defined benefit plans

(299)

(237)

Total accumulated other comprehensive income

8,028

12,66537

90

79,93987,528100,853

109,836

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

Total liabilities
Net assets

Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment

Subscription rights to shares
Total net assets
Total liabilities and net assets

5Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
September 30, 2016

Fiscal year ended
September 30, 2017

Net sales

47,591

48,001

Cost of sales

29,83629,245Gross profit

17,75418,756

801
5,203

810
5,338

Provision for bonuses
Provision for directors' bonuses

727
58

838
67

Retirement benefit expenses
Provision for directors' retirement benefits

543
16

481
–

Welfare expenses
Depreciation

1,046
761

1,182
840

Amortization of goodwill
Other

143
3,290

208
3,381

Total selling, general and administrative expenses

12,594

13,149

5,160

5,606

Interest income
Dividend income

31
232

33
260

Foreign exchange gains
Other

–
151

173
88

Total non-operating income

415

556

10

3

Foreign exchange losses
Rent expenses on facilities

338
49

–
43

Other

13

14

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

Operating profit
Non-operating income

Non-operating expenses
Interest expenses

Total non-operating expenses

411

62

5,164

6,101

Gain on sales of non-current assets
Gain on sales of investment securities

–
142

75
55

Total extraordinary income

142

131

39

–

Loss on abandonment of non-current assets

87

95

Total extraordinary losses

127

95

Profit before income taxes

5,179

6,137

Income taxes - current
Income taxes - deferred

1,449
92

1,613
224

Total income taxes

1,542

1,837

Profit

3,637

4,299

Profit attributable to owners of parent

3,637

4,299

Ordinary profit
Extraordinary income

Extraordinary losses
Impairment loss

6

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

September 30, 2016

September 30, 2017

3,637

4,299

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

1,290(3,184)

2,740
1,835

Remeasurements of defined benefit plans, net of tax

(4)

61

(1,898)

4,637

Comprehensive income

Total other comprehensive income

1,739

8,937

Comprehensive income attributable toComprehensive income attributable to owners of parent

1,739

8,937

–

–

Comprehensive income attributable to non-controllinginterests

7

Consolidated statements of changes in equity
Fiscal year ended September 30, 2016
(Millions of yen)
Shareholders' equity
Capital stock
Balance at beginning of current
periodCapital surplus

Retained earnings

7,292

57,173

5,364

Treasury shares

Total shareholders'equity(321)

69,509Changes of items during period
Dividends of surplus(1,272)(1,272)

Profit attributable to owners ofparent

3,637

3,637

Purchase of treasury shares

(0)

(0)

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

–

–

2,364

(0)

2,364

5,364

7,292

59,538(322)

71,873

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

8,404

1,817

Remeasurementsof defined
benefit plans

(295)

Total
Subscription
accumulated
Total net assets
rights to shares
othercomprehensive
income9,926–

79,436

Changes of items during period
Dividends of surplus(1,272)

Profit attributable to owners ofparent

3,637

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

(0)
1,290

(3,184)(4)(1,898)37(1,860)Total changes of items during
period1,290(3,184)(4)(1,898)37503

Balance at end of current period

9,695(1,367)

(299)

8,028

37

79,9398

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

Retained earnings

7,292

59,538

5,364

Treasury shares

Total shareholders'equity(322)

71,873

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

Profit attributable to owners ofparent

4,299

4,299

Purchase of treasury shares

(0)

(0)

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

–

–

2,899

(0)

2,898

5,364

7,292

62,438(323)

74,772

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

Foreigncurrencytranslation
adjustment

Remeasurementsof defined
benefit plans(1,367)

(299)

Total
Subscription
accumulated
Total net assets
rights to shares
othercomprehensive
income8,028

37

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

Profit attributable to owners ofparent4,299

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

(0)
2,740

1,835

61

4,637

52

4,690

Total changes of items during
period

2,740

1,835

61

4,637

52

7,589

Balance at end of current period

12,435468(237)

12,6659087,5289

Consolidated statements of cash flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes

Fiscal year ended

Fiscal year ended

September 30, 2016

September 30, 2017

5,179

6,137

2,937
39

2,842
–

143

208

(1,066)

–

1,027

(29)

Share-based compensation expenses
Increase (decrease) in provision for bonuses

37
95

52
125

Increase (decrease) in provision for directors' bonuses
Increase (decrease) in allowance for doubtful accounts

21
(4)

8
4

Increase (decrease) in net defined benefit liability
Decrease (increase) in net defined benefit asset

103
3

130
(15)

Interest and dividend income
Interest expenses

(263)
10

(294)
3

Foreign exchange losses (gains)
Loss on abandonment of non-current assets

235
87

(80)
95

Loss (gain) on sales of intangible assets
Loss (gain) on sales and valuation of investment securities

–
(142)

(75)
(56)

Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories

433
(512)

(1,114)(948)

Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accrued consumption taxes

(40)
(333)

(270)
112

Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in provision for directors' retirement
benefits
Increase (decrease) in long-term accounts payable - other

Other, net

13

(620)

Subtotal

8,006

6,213

Interest and dividend income received

263

292

Interest expenses paid
Income taxes paid

(10)
(1,593)(4)(1,642)

Net cash provided by (used in) operating activities

6,666

4,860

(20)

(289)

69
(3,318)33(3,156)

Proceeds from sales of property, plant and equipment
Payments for retirement of property, plant and equipment

89
(59)

4
(130)

Purchase of intangible assets
Proceeds from sales of intangible assets

(142)
–

(64)
284

Purchase of investment securities
Proceeds from sales of investment securities

(33)
224

(30)
78

–
–

(25)
(6,160)

135
(75)

–
–

0

–

(3,131)(9,456)

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

Payments of short-term loans receivable
Purchase of shares of subsidiaries
Proceeds from collection of guarantee deposits
Payments for asset retirement obligations
Other, net
Net cash provided by (used in) investing activities

10

(Millions of yen)

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

Fiscal year ended

Fiscal year ended

September 30, 2016

September 30, 2017
(22)

(118)

Purchase of treasury shares
Cash dividends paid

(0)
(1,272)(0)(1,399)Net cash provided by (used in) financing activities(1,295)(1,519)Effect of exchange rate change on cash and cash equivalents

(527)

314

Net increase (decrease) in cash and cash equivalents

1,712(5,802)

Cash and cash equivalents at beginning of period

20,601

22,313

Cash and cash equivalents at end of period

22,313

16,511

11

Segment Information
1. Outline of reportable segments
The T.Hasegawa group’s reportable segments are components of the group for which separate financial information isavailable. These segments are periodically evaluated by the Board of Directors when deciding how to allocate
management resources and when assessing performance.
The T.Hasegawa group primarily engages in the manufacture and sales of fragrance and flavor products. Japan is incharge of the area including domestic market and overseas countries except for China, Malaysia, and the U.S., andthere are each subsidiary in China, Malaysia and the U.S. The subsidiaries have self-management system in eachcountry and these subsidiaries develop comprehensive strategy based on global strategy made by the company, andengage in business activities on a regional basis.
Thus, the T.Hasegawa group is composed of segments separated by the location of group companies, whose location
is determined by the production and sales structure, and defines the three segments of “Japan,” “Asia,” and “USA,”as reportable segments. In addition, in the current consolidated fiscal year, FLAVOR INGREDIENT HOLDINGS,
LLC (Main Office: California, the US) has become a wholly owned subsidiary by acquisition of all the outstanding
shares, which is included in the scope of consolidation in USA segment.
2. Calculation method of net sales, profit or loss, assets, and other items in reportable segments
The accounting method used for reportable segments is the same as the method stated in “Significant Basic Items for
Preparation of Consolidated Financial Statements.” Segment profits of reportable segments are provided on an
ordinary income basis. Inter-segment sales or transfers are based on current market prices.

123. Information of net sales, profit or loss, assets, and other items for each reportable segment(1) Fiscal year ended September 30, 2016
(From October 1, 2015 to September 30, 2016)(Millions of yen)
Reportable segment
Japan

Asia

USA

Adjustment(Note 1,2)

Total

Consolidated(Note 3)

Net sales
Sales to externalcustomers

36,321

7,900

3,369

47,591－47,591

479

413

354

1,248

(1,248)－Total

36,801

8,314

3,723

48,839(1,248)47,591

Segment profit

3,761

1,318

99

5,179

(14)

5,164

Segment assets

94,162

14,321

3,197

111,681(10,827)

100,853

Depreciation

2,183

524

229

2,937

－

2,937

Amortization of
Goodwill

－

143

－

－

－

143

Interest income

43

27

0

70

(39)

31

Interest expenses

0

36

14

51

(41)

10

Inter-segment sales ortransfers

Other items

Impairment loss
39
－
－
－
－
39
(Note 4)
Increase in property,
2,170
473
89
2,733
－
2,733
plant and equipment andintangible assets
Term-end balance of
－
1,066
－
－
－
1,066
Goodwill
1. The adjustments on segment profit of negative 14 million yen include negative 5 million yen of foreign currencytranslation related to eliminating inter-segment assets and liabilities by offsetting, negative 8 million yen of
adjustments for inventories related to inter-segment transactions, and negative 0 million yen for others.
2. The adjustments for segment assets of negative 10,827 million yen include adjustments for negative 10,731 million
yen of inter-segment transaction and corporate assets, and negative 96 million yen of inventories related tointer-segment transactions, and 0 million yen for others.
3. Segment profit is adjusted to ordinary profit of consolidated statements of income.
4. Impairment loss of 39 million yen includes idle assets which are expected to be disused.

13

(2) Fiscal year ended September 30, 2017
(From October 1, 2016 to September 30, 2017)(Millions of yen)
Reportable segment
Japan

Asia

USA

Adjustment(Note 1,2)

Total

Consolidated(Note 3)

Net sales
Sales to externalcustomers

36,077

7,737

4,186

48,001－

48,001

506

356

423

1,286

(1,286)－

Total

36,583

8,094

4,609

49,288(1,286)48,001

Segment profit

4,430

1,367

278

6,076

24

6,101

Segment assets

99,882

17,185

10,144

127,211(17,375)

109,836

Depreciation

2,040

519

282

2,842

－

2,842

Amortization of
Goodwill

－

135

72

－

－

208

Interest income

21

32

0

53

(19)

33

Interest expenses

0

8

14

23

(19)

3

Inter-segment sales ortransfers

Other items

Increase in property,
1,440
986
339
2,766
－
2,766
plant and equipment andintangible assets
Term-end balance of
－
1,023
2,862
－
－
3,885
Goodwill
Notes
1. The adjustments on segment profit of 24 million yen include negative 1 million yen of inter-segment transactions,
25 million yen of adjustments for inventories related to inter-segment transactions, and 0 million yen for others.
2. The adjustments for segment assets of negative 17,375 million yen include adjustments for negative 17,303 million
yen of inter-segment transaction and corporate assets, and negative 72 million yen of inventories related tointer-segment transactions, and 0 million yen for others.
3. Segment profit is adjusted to ordinary profit of consolidated statements of income.

14