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, 2016
(Based on Japanese GAAP)
November 11, 2016
Company name:T. HASEGAWA CO., LTD.

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

URL

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

President & COO
Director, Deputy President & CFOTakahiko Kondo
Takao Umino

TEL

Scheduled date of ordinary general meeting of shareholders:
Scheduled date to file Securities Report:

December 21, 2016
December 22, 2016

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

December 6, 2016
Yes

Holding of financial results meeting:Yes

03-3241-1151(for institutional investors and analysts)(Amounts less than one million yen are rounded down)

1. Consolidated financial results for the year ended September 30, 2016 (from October 1, 2015 to September 30, 2016)(1) Consolidated operating results
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating income
Ordinary income
owners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Year ended September 30, 2016
47,591
0.8
5,160
18.6
5,164
6.4
3,637
19.5
Year ended September 30, 2015
47,228
5.1
4,352
(0.7)
4,852
(1.8)
3,043
(6.0)
Note: Comprehensive income

Year ended September 30, 2016
Year ended September 30, 2015

Earnings per share¥1,739 million [(71.9)%]¥6,198 million [4.5%]
Profit attributable toOrdinary
owners ofincome/total assets
parent/equity
Yen
%
%
85.67
4.6
5.1
–
4.0
5.0

Diluted earnings per
share

Yen
85.74
73.16

Year ended September 30, 2016
Year ended September 30, 2015

Reference: Investment profit (loss) on equity method Year ended September 30, 2016
Year ended September 30, 2015

Operatingincome/net sales
%
10.8
9.2

¥– million¥– million(2) Consolidated financial position
Total assets
As of September 30, 2016
As of September 30, 2015
Reference: Equity

Net assets

Millions of yen
100,853
101,604

As of September 30, 2016
As of September 30, 2015

Millions of yen
79,93979,436Equity ratio

Net assets per share
%
79.2
78.2

Yen
1,883.29
1,872.30¥79,902 million¥79,436 million(3) Consolidated cash flows

Year ended September 30, 2016
Year ended September 30, 2015

Cash flows fromoperating activities
Millions of yen
6,666
5,969

Cash flows frominvesting activities
Millions of yen(3,131)(6,769)1

Cash flows from
Cash and cash equivalents
financing activities
at end of period
Millions of yen
Millions of yen(1,295)22,313337
20,6012. Cash dividends
Annual dividends per share
1st quarter-end 2nd quarter-end 3rd quarter-end Fiscal year-end

Year ended September 30, 2015
Year ended September 30, 2016
Year ending September 30, 2017
(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

%

%

–
–

15.00
15.00

–
–

15.00
17.00

30.00
32.00

1,259
1,357

41.0
37.3

1.7
1.7

–

16.00

–

16.00

32.00

33.4

3. Forecast of consolidated financial results for the year ending September 30, 2017 (from October 1, 2016 to September 30, 2017)
Percentages indicate year-on-year changes
Profit attributable to
Net sales
Operating income
Ordinary income
Earnings per shareowners of parent
Millions of yen% Millions of yen% Millions of yen% Millions of yen%
Yen
Six months ending
22,840
0.1
2,410
6.5
2,520
12.3
1,780
15.4
41.95
March 31, 2017
Full year
48,000
0.9
5,610
8.7
5,830
12.9
4,070
11.9
95.93
4. Notes(1) Changes in significant subsidiaries during the year ended September 30, 2016(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:

Yes
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, 2016

42,708,154 shares As of September 30, 2015

42,708,154 shares

Number of treasury shares at the end of the period
As of September 30, 2016

281,269 shares As of September 30, 2015

281,069 shares

42,427,005 shares Year ended September 30, 2015

41,596,530 shares

Average number of shares during the period
Year ended September 30, 20162

Reference: Summary of non-consolidated financial results
1. Non-consolidated financial results for the year ended September 30, 2016 (from October 1, 2015 to September 30, 2016)(1)Non-consolidated financial results
Percentages indicate year-on-year changes
Net salesYear ended September 30, 2016
Year ended September 30, 2015

Millions of yen
36,801
36,081

Operating income% Millions of yen
2.0
3,528
(0.5)
2,836

Millions of yen
3,677
3,405

Profit%8.0
1.5

Millions of yen
2,643
2,068

%
27.8
(5.0)

Diluted earnings
per share
Yen
62.25
–

Earnings per share
Yen
62.30
49.73

Year ended September 30, 2016
Year ended September 30, 2015

%
24.4
1.6

Ordinary income(2)Non-consolidated financial position
Total assets
As of September 30, 2016
As of September 30, 2015
Reference: Equity

Net assets

Millions of yen
93,87091,868Equity ratio

Millions of yen
75,01872,320

As of September 30, 2016

¥74,980 million

As of September 30, 2015

¥72,320 million

Net assets per share
%
79.9
78.7

Yen
1,767.30
1,704.57

2. Forecast of non-consolidated financial results for the year ending September 30, 2017 (from October 1, 2016 to September 30, 2017)
Percentages indicate year-on-year changes
Net sales
Millions of yen
Six months ending
March 31, 2017
Full year

Operating income% Millions of yen

Ordinary income% Millions of yen

Profit% Millions of yen

Earnings per share%

Yen

17,670

1.8

1,700

12.7

1,840

16.1

1,300

15.6

30.64

37,200

1.1

4,030

14.2

4,320

17.5

3,070

16.2

72.36

* Indication regarding execution of audit proceduresThis financial results report is exempt from the audit procedures in accordance with the Financial Instruments and Exchange Act. At the time of
disclosure of this financial results report, the audit procedures for financial statements in accordance with the Financial Instruments andExchange Act have not been completed.
* 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, 2015

As of September 30, 2016

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade

9,674
16,38911,33615,312

Securities
Merchandise and finished goods

10,9995,917

10,9996,190Work in process
Raw materials and supplies

154
5,276

103
5,152

624
713

622
619

Deferred tax assets
Other
Allowance for doubtful accounts

(4)

(4)

49,74450,33336,10036,278

Accumulated depreciation(18,582)(19,097)

Buildings and structures, net

17,517

17,180Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Machinery, equipment and vehicles

35,647

34,582

Accumulated depreciation(29,743)(29,949)

5,904

4,633

5,992

6,035

Accumulated depreciation(4,809)(4,928)Tools, furniture and fixtures, net

1,182

1,106

Land

6,555

6,477

Construction in progress

1,455

913

Total property, plant and equipment

32,61430,311

Goodwill
Other

1,319
1,220

1,066
1,079

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

Intangible assets

Total intangible assets

2,540

2,145

Investments and other assets
Investment securities

15,742

17,270

Deferred tax assets
Net defined benefit asset

27
6

25
2

Other
Allowance for doubtful accounts

989
(60)

821
(56)

Total investments and other assets

16,70518,06351,86050,520101,604

100,853

Total non-current assets
Total assets

4

(Millions of yen)
As of September 30, 2015

As of September 30, 2016

Liabilities
Current liabilities
Notes and accounts payable - trade

5,896

5,661

5
863

5
737

Provision for bonuses
Provision for directors' bonuses

1,054
36

1,116
58

Asset retirement obligations
Other

78
4,172

–
2,876

Total current liabilities

12,107

10,455Current portion of long-term loans payable
Income taxes payableNon-current liabilities
Long-term loans payable

151

116

Deferred tax liabilities
Net defined benefit liability

2,237
6,490

2,608
6,590

Provision for directors' retirement benefits
Asset retirement obligations

1,066
69

–
70

–
46

1,027
46

10,061

10,45822,16820,914

Shareholders' equity
Capital stock

5,364

5,364

Capital surplus
Retained earnings

7,292
57,173

7,292
59,538Long-term accounts payable - other
Other
Total non-current liabilities
Total liabilities
Net assets

Treasury shares

(321)

(322)

69,50971,873

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

8,404
1,817

9,695
(1,367)

Remeasurements of defined benefit plans

(295)

(299)

Total accumulated other comprehensive income

9,926

8,028

–

37

Total shareholders' equity
Accumulated other comprehensive income

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

579,436

79,939101,604

100,853

Consolidated statements of income and consolidated statements of comprehensive income
Consolidated statements of income(Millions of yen)
Fiscal year ended
September 30, 2015

Fiscal year ended
September 30, 2016

Net sales

47,22847,591

Cost of sales

29,94929,836Gross profit

17,27817,754

830
5,315

801
5,203

Provision for bonuses
Provision for directors' bonuses

669
36

727
58

Retirement benefit expenses
Provision for directors' retirement benefits

541
150

543
16

Welfare expenses
Depreciation

1,029
755

1,046
761

Amortization of goodwill
Other

127
3,468

143
3,290

Total selling, general and administrative expenses

12,925

12,594

4,352

5,160

Interest income
Dividend income

54
196

31
232

Foreign exchange gains
Other

183
115

–
151

Total non-operating income

548

415

10

10

Foreign exchange losses
Rent expenses on facilities

–
32

338
49

Other

5

13

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

Operating income
Non-operating income

Non-operating expenses
Interest expenses

Total non-operating expenses

49

411

4,852

5,164

Gain on sales of investment securities–

142

Total extraordinary income

–

142

61
165

39
87

Ordinary income
Extraordinary income

Extraordinary losses
Impairment loss
Loss on abandonment of non-current assets
Loss on valuation of investment securities

12–

Total extraordinary losses

239

127

Profit before income taxes

4,613

5,179

Income taxes - current
Income taxes - deferred

1,370
199

1,449
92

Total income taxes

1,569

1,542

Profit

3,043

3,637

Profit attributable to owners of parent

3,043

3,637

6

Consolidated statements of comprehensive income(Millions of yen)

ProfitOther comprehensive income

Fiscal year ended

Fiscal year ended

September 30, 2015

September 30, 2016

3,043

3,637

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

2,772
355

1,290
(3,184)Remeasurements of defined benefit plans, net of tax

27

(4)

3,155

(1,898)Comprehensive income

Total other comprehensive income

6,198

1,739

Comprehensive income attributable toComprehensive income attributable to owners of parent

6,198

1,739

–

–

Comprehensive income attributable to non-controllinginterests

7

Consolidated statements of changes in equity
Fiscal year ended September 30, 2015
(Millions of yen)
Shareholders' equity
Treasury

Capital stock

Capital surplus

Retainedearnings

Treasury sharesstock(employees' Gross treasury
shareholding

stock

association)

Balance at beginning of current
period

5,364

6,700

55,440

Cumulative effects of changes
in accounting policies
Restated balance(1,351)(129)(1,480)

(64)
5,364

6,700

Total
shareholders'equity66,025(64)

55,376(1,351)(129)(1,480)65,961

Changes of items during period
Dividends of surplus(1,245)(1,245)

Profit attributable to owners ofparent

3,043

3,043

Purchase of treasury shares
Disposal of treasury shares

591

(0)

(0)

(0)

1,030

1,030

1,621

129

129

129

Sale of treasury stock from
employees' shareholding
association
Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period

–

591

1,797

1,029

129

1,159

3,547

5,364

7,292

57,173

(321)

–

(321)

69,509

Accumulated other comprehensive income

Balance at beginning of current
periodValuationdifference on
available-forsale securities

Foreigncurrencytranslation
adjustment

5,631

1,461

Remeasurementsof defined
benefit plans

(322)

Total
Subscription
accumulated
Total net assets
rights to shares
othercomprehensive
income6,771–

Cumulative effects of changes
in accounting policies
Restated balance

72,796
(64)

5,631

1,461

(322)

6,771

–

72,732

Changes of items during period
Dividends of surplus(1,245)

Profit attributable to owners ofparent

3,043

Purchase of treasury shares(0)

Disposal of treasury shares

1,621

Sale of treasury stock from
employees' shareholding
association

129

Net changes of items other thanshareholders' equity

2,772

355

27

3,155

–

3,155

Total changes of items during
period

2,772

355

27

3,155

–

6,703

Balance at end of current period

8,404

1,817

(295)

9,926

–

79,436

8

Fiscal year ended September 30, 2016
(Millions of yen)
Shareholders' equity
Treasury

Capital stock

Capital surplus

Retainedearnings

Treasury sharesstock(employees' Gross treasury
shareholding

stock

association)

Balance at beginning of current
period

5,364

7,292

57,173Cumulative effects of changes
in accounting policies
Restated balance

(321)

–

(321)

–
5,364

7,292

Total
shareholders'equity69,509–57,173

(321)

–

(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)

(0)

Disposal of treasury shares
Sale of treasury stock from
employees' shareholding
association
Net changes of items other thanshareholders' equity
Total changes of items during
periodBalance at end of current period

–

–

2,364

(0)

–

(0)

2,364

5,364

7,292

59,538

(322)

–

(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)

Cumulative effects of changes
in accounting policies
Restated balance

8,404

1,817

(295)

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

79,436

–

–

–

9,926

–

79,436

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

Profit attributable to owners ofparent

3,637

Purchase of treasury shares(0)

Disposal of treasury shares–

Sale of treasury stock from
employees' shareholding
association–

Net changes of items other thanshareholders' equity

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

79,9399

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, 2015

September 30, 2016

4,613

5,179

3,017
61

2,937
39

127

143

(153)

(1,066)–

1,027

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

–
50

37
95

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

(4)
6

21
(4)

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

121
–

103
3

Interest and dividend income
Interest expenses

(250)
10

(263)
10

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

(163)
165

235
87

Loss (gain) on sales and valuation of investment securities
Decrease (increase) in notes and accounts receivable - trade12(1,138)(142)433

Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade

(463)
183

(512)
(40)

Increase (decrease) in accrued consumption taxes
Other, net

391
(38)

(333)
13

6,550

8,006

Interest and dividend income received
Interest expenses paid

249
(9)

263
(10)

Income taxes paid

(820)

(1,593)

Net cash provided by (used in) operating activities

5,969

6,666

(94)
56

(20)
69

(3,293)–(3,318)89

Payments for retirement of property, plant and equipment
Purchase of intangible assets

(160)
(138)

(59)
(142)

Purchase of investment securities
Proceeds from sales of investment securities

(31)
–

(33)
224

Expenditure of capital increase of subsidiary
Purchase of shares of subsidiaries(84)(3,026)––

Proceeds from collection of guarantee deposits
Payments for asset retirement obligations

–
(3)

135
(75)

Other, net

70(6,769)(3,131)

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

Subtotal

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

Net cash provided by (used in) investing activities

10

(Millions of yen)
Fiscal year ended

Fiscal year ended

September 30, 2015

September 30, 2016

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

(197)

(22)

Purchase of treasury shares
Proceeds from sales of treasury shares

(0)
160

(0)
–

Proceeds from disposal of treasury shares
Cash dividends paid

1,621
(1,246)–(1,272)337(1,295)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

165

(527)

Net increase (decrease) in cash and cash equivalents

(297)

1,712

Cash and cash equivalents at beginning of period

20,89820,601

Cash and cash equivalents at end of period

20,601

22,31311

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.
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, 2015
(From October 1, 2014 to September 30, 2015)(Millions of yen)
Reportable segment
Japan

Asia

USA

Adjustment(Note 1,2)

Total

Consolidated(Note 3)

Net sales
Sales to externalcustomers

35,686

8,664

2,876

47,228－47,228

394

249

188

832

(832)

－

Total

36,081

8,914

3,065

48,060(832)

47,228Segment profit or loss

3,519

1,377

(57)

4,838

13

4,852

Segment assets

92,14017,333

3,725

113,200(11,595)

101,604

2,336

464

216

3,017

－

3,017

Inter-segment sales ortransfers

Other items
Depreciation
Amortization of
GoodwillInterest income

－

127

－

－

－

127

63

49

0

113

(59)

54

Interest expenses

0

54

13

68

(58)

10

Impairment loss
61
－
－
－
－
61
(Note 4)
Increase in property,
2,779
1,071
224
4,075
－
4,075
plant and equipment andintangible assets
Notes
1. The adjustments on segment profit or loss of 13 million yen include 11 million yen of foreign currency translation
related to eliminating inter-segment assets and liabilities by offsetting, 2 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 11,595 million yen include adjustments for negative 11,507 million
yen of inter-segment transaction and corporate assets, negative 88 million yen of adjustments for inventories related
to inter-segment transactions, and 0 million yen for others.
3. Segment profit or loss is adjusted to ordinary income of consolidated statements of income.
4. Impairment loss of 61 million yen includes 51 million yen in certain rental assets to a contract manufacturer and 10
million yen in dormant land as they are unutilized.

13

(2) 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

2,183

524

229

2,937

－

2,937

－

143

－

－

－

143

43

27

0

70

(39)

31

0

36

14

51

(41)

10

Inter-segment sales ortransfers

Other items
Depreciation
Amortization of
GoodwillInterest income
Interest expenses

Impairment loss
39
－
－
－
－
39
(Note 4)
Increase in property,
2,170
473
89
2,733
－
2,733
plant and equipment andintangible assets
Notes
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 income of consolidated statements of income.
4. Impairment loss of 39 million yen includes idle assets which are expected to be disused.

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