Financial Results for
the Fiscal Year Ended
September 30, 2023
November 22, 2023

T. HASEGAWA CO., LTD.

Contents
I.

Business Overview

II.

Overview of Financial Statements

III. Business Environment
IV.

Management Policy

V.

Global Strategy

VI. Medium-Term Three-Year Plan Overview
VII. Capital Policy
VIII. Basic Policy on IR Activities
IX. Accompanying Materials
1

I. Business Overview

2

Flavor and Fragrance Business
Products

Ingredients(Compounded Flavors and Fragrances)

Natural aromatics

Flavors

調合Compounding

Synthesizedaroma chemicals

FormulasFragrances

Integration of research anddevelopment capabilities

Flavorists : Experts who formulate flavors
Perfumers : Experts who formulate fragrances
Flavors and fragrances are in accordance with customer requests⇒ Formulas created by flavorists and perfumers based on experience areinvaluable assets for flavor and fragrance companies
3

Ⅱ．Overview of
Financial Statements

4Market Environment
Trends by Category (Domestic Market)

・ Fiscal Year Ended (FYE) September 30, 2023 (October 2022 to September 2023)
Category

Beverages

SavorysnacksSweet
andsavorysnacks

Chocolate

Frozen Desserts

Instant Noodles

Impact on
performance

Trend

Decrease• Sales decrease due to price increases for small-sized drinks (PET bottles)
and canned coffee drinks, despite contributions from extreme summer
heat• Private brands grew on the back of price inflations• By category, sales of mineral water, carbonated beverages and barley tea
grew amid a rise in demand for thirst-quenching drinks

Increase• Sales of Potato Chips and Shoestrings Fries increased despite pricerevision of potato products• Sales of Wheat Flour Products, Corn Snacks and Bean Snacks grew due toincreased frequency of discount sales

Unchanged• Sales of high-cacao dark chocolate products were strong due to stronger
consumer health concerns, while sales of chocolate bars were sluggish
due to price revision• Sales of nuts products increased from the previous year mainly due toincrease in discount sales and small-package products• Sales of chocolate snacks were strong due to increase in outing occasions
and more purchases for pocket-sized snack products, while sales of largesized snack products were stagnant due to sales prices increases andfewer discount sales

Increase• Sales were strong due to extreme hot weathers• Secured the previous year level on a volume basis even after priceincreases

Unchanged• Sales of both packaged-type instant noodles and cup noodles remained
steady due to relatively affordable prices• Demand was concentrated on high-value-added, low-cost products,
leaving standard brand products weak

Source: Nikkan Keizai Tsushin: Positive direction: Negative direction

：Flat

5

Summary of Consolidated Performance•Yr/YrSales increased mainly because of an increase in sales of Chinese subsidiaries and U.S. subsidiaries (due to depreciation of theyen), and sales of T.Hasegawa on a non-consolidated basis
Operating profit, ordinary profit, and net profit decreased mainly due to deterioration in the cost of sales ratio and increase in
SG&A expenses•

Vs Target Plan
Net sales target was achieved as planned
Failed to achieve operating profit target mainly due to our higher-than-expected cost of sales on a non-consolidated basis,but covered the sharp rise in raw materials more than initially expected through price increases, resulting in less decrease in profit（Million yen）
FY2022(actual)FY2023(targets revisedon August 7,
2023)

FY2023(actual)ChangeYr/YrAmountVs. target％

Amount％Net sales

62,39864,60064,874

2,476

4.0%

274

0.4%

Cost of sales

36,77638,70039,185

2,409

6.6%

485

1.3%

Gross profit

25,62225,90025,689

67

0.3%

-210

-0.8%

SG&A expenses

17,57018,30018,181

611

3.5%

-118

-0.6%

Operating profit

8,051

7,600

7,507

-544

-6.8%

-92

-1.2%

Ordinary profit

9,075

8,050

8,185

-890

-9.8%

135

1.7%

Income before
income taxes

11,267

9,210

9,322

-1,944-17.3%

112

1.2%

Net profit

8,007

6,600

6,671

-1,335-16.7%

71

1.1%

EBITDA *12,281

12,181

12,119

-162

-1.3%

-62

-0.5%

* Net profit refers to net profit attributable to owners of parent* EBITDA = Operating profit + Depreciation (including amortization of customer-related assets) + Amortization of goodwill
EBITDA margin (%): 18.7%

6

Net Sales by Segment• Sales growth factors
Sales increased in Chinese subsidiaries, U.S. subsidiaries (due to depreciation of the yen), andT.Hasegawa on a non-consolidated basis(Million yen)Segment

FY 2022
Actual

FY 2023
ActualChangeAmountFactor

%Flavors

54,35957,075

2,716

5.0%

Higher sales of U.S. subsidiaries (due todepreciation of the yen), T.Hasegawa (nonconsolidated), and Chinese subsidiaries

Fragrances

8,039

7,799

-240

-3.0%

Higher sales in T.Hasegawa (non-consolidated)

Total

62,39864,874

2,476

4.0%

－

FY2023

ActualOverseas net sales asa percentage of consolidated
net sales

Flavors
Domestics
Overseas

Fragrances
Total

FY2023：46.5%(FY2022: 45.9%)

040,00080,000(Million yen)

7

Net Sales by Group Company• Sales growth factors
Higher sales of Chinese subsidiaries, U.S. subsidiaries(due to depreciation of the yen) ,and T.Hasegawa (non-consolidated)(Million Yen)FY2022

FY2023

ActualJapan

39,174

Actual

39,711

537

1.4%

U.S.

12,157

12,720

562

4.6%

China

9,828

10,673844

8.6%

Malaysia

1,358

1,686

328

24.2%

Others

3,506

3,840

334

9.5%

Adjustment-3,627-3,758-130-

Consolidated

62,39864,874

2,476

4.0%

Yr/Yr

• Effect of exchange rate
Due toforex rates%

Amount ofchange

537

Japan

329

208

U.S.

1,329

-767

562

China

390

454

844

Malaysia

99

229

328

Others

211

123

334

Adjustment

-238

108

-130

Consolidated

2,120

356

2,476

FY2022

FY2023

Yr/Yr

1US$

¥124.46¥138.98

Yen down 11.7%

1RMB¥18.96¥19.68

Yen down 3.8%

1MYR

¥28.90¥30.71

Yen down 6.3%

(Million Yen)

68,000

+537

+562

+334

+844 +328-130

31,31364,87462,39829,199(Million Yen)othersCurrency

00 22.9
実績

日本

米国

中国

ﾏﾚｰｼｱ

その他
連結子会社

調整

23.9
実績

Japan

Increase in sales in flavor segment

Sales
Increase

U.S.

Sales fell in U.S. dollars as concerns about anunclear economic outlook affected the whole
flavor industry
Yen-based sales increased due to depreciationof the yen

Sales
Increase

China

Increase in sales in flavor segment

Sales
Increase

Malaysia

Increase in sales to savory snacks

Sales
Increase

8

Operating Profit by Group Company• Profit decline factors
Decrease in operating profit of U.S. subsidiary
and T.Hasegawa (non-consolidated)
FY2022

FY2023

ActualActual

Japan

5,151

U.S.

(Million Yen)

Yr/Yr

%

4,538

-612

-11.9%

510

-168

-679

-

China

2,156

2,739

582

27.0%

Malaysia

187

279

91

49.0%

Others

252

219

-33

-13.1%

Adjustment

-207

-101

106

-

Consolidated

8,051

7,507

-544

-6.8%

• Effect of exchange rate
Due toforex rates(Million Yen)

Amount ofothersCurrency

FY2022

FY2023

Yr/Yr

1US$

¥124.46¥138.98

Yen down 11.7%

1RMB¥18.96¥19.68

Yen down 3.8%

1MYR

¥28.90¥30.71

Yen down 6.3%

(Million Yen)

9,000
9,000

-612

+91

-33

+106

-679 +582
3,823
8,051

3,585
7,507

5,0000change

Japan

136

-748

-612

U.S.

-18

-661

-679

China

100

482

582

Malaysia

16

75

91

Others

18

-51

-33

Adjustment

66

40

106

Consolidated

319

-863

-544

Japan

Deterioration in cost-of-sales ratio(due to increase of raw material priceand increased utility costs)

ProfitDecrease

U.S.

Deterioration in cost-of-sales ratio (affected byincrease of material price and depreciation costs
due to the commencement of the second plant
operation, and decrease in production volume)
Increase in SG&A expenses (due to depreciationof the yen)

ProfitDecrease

China

Increase in net sales and improvements incost-of-sales ratio

ProfitIncrease

Malaysia

Increase in net sales

ProfitIncrease

9

Analysis of changes in operating profit• Saw less decrease in profit than initially expected through price increases, despite higher cost-of-sales and adecrease in operating profit mainly due to the sharp rise in raw material prices(Million Yen)

ProfitIncrease+356-1,178-1,2088,051

FY2022
Operating Profit

・Higher sales at
Chinese subsidiaries

Net+433
Sales
growth factors-11・Increase of raw
material priceCost-815
of salesFactors affecting
deterioration factors SG&A-89
expenses：百万
ProfitDecrease+319+289
・Depreciationof the yen

Effect of+233 rateexchange

7,507

FY2023Operating Profit

Impact of high raw material prices• Impact of high raw material prices and utility costs was factored in the initial plan
⇒ Less than expected decrease in profits as a result of price increases helping to cover sharp rise in raw materials over
expectations and improved cost-of-sales ratio of Chinese subsidiaries, etc.
Factors contributed to operating loss of U.S. subsidiaries• The whole U.S. flavor industry slowed as orders were temporarily suspended amid uncertainty about the U.S. economy⇒ Sales in our U.S. subsidiaries were also affected by the slowdown of the whole industry, to the extent less than theslowdown of the whole market• Future outlook
As the temporarily suspended orders are recovering, our U.S. subsidiaries also expect a recovery in sales and operating
profit for FY2024(Reference) U.S. subsidiaries’ plan for FY2024
Net sales: US$ 95 million (approx. 13.1 billion yen), up 4.7% Yr/Yr
Operating profit: US$ 0.7 million (approx. 100 million yen), returning to profit

10

Ⅲ．Business Environment11

Size of Global Flavors and Fragrances Market (Estimated by the Company)• Worldwide flavors and fragrances sales: Approx. 31.0 billion U.S. dollars (approx. 4.0 trillion yen)
Europe, Africa, Middle East

‐ Market size: Approx. 11.3 billion U.S. dollars(approx. 1,480 billion yen)*‐ Many users have introduced a preferredsupplier system, and major flavor andfragrance companies in Europe and the U.S.
have established foundations

North America‐ Market size: Approx. 8.0 billion U.S. dollars (approx. 1,030 billion yen)*‐ Many users have introduced a preferred supplier system, and major flavor andfragrance companies in Europe and the U.S. have established foundations‐ The Company established a U.S. subsidiary in California in 1978
‐ 2017: Acquired FLAVOR INGREDIENT HOLDINGS, LLC It manufactures andsells food and beverage flavors, mainly in the health sector‐ 2020: Acquired MISSION FLAVORS & FRAGRANCES, INC. It manufacturesand sells flavors with strength in sweet flavors used in dairy products, ice cream,
etc.

Asia

‐ Market size: Approx. 9.2 billion U.S. dollars (approx. 1,200
billion yen)*‐ Market expansion due to economic growth in China and otheremerging markets‐ Major global flavor and fragrance companies are entering China‐ The Company established subsidiaries in Shanghai (2000),
Suzhou (2006), Thailand (2003), Indonesia (2014), and Taiwan(2017)‐ Secured a manufacturing site in Malaysia through M&A (2014)* The Company’s estimates for market size by region* Forex rate: 1 U.S. dollar = 130.4 yen (2022)● = the Company’s base

South America‐ Market size: Approx. 2.5 billion U.S.
dollars (approx. 330 billion yen)*‐ Mainly imports from North America,
Mexico, etc.
‐ Competition intensifying in the Brazilian
market owing to economic growth12Global Flavors and Fragrances Market (Estimated by the Company)• Global flavors and fragrances market in 2022: Grew approx. 3% Yr/Yr
Global Flavors and Fragrances Market (Estimated by the Company)(Million US$)

40,000CAGR
30,000South America

6.9%

Asia

3.9%

North America

2.5%

Europe, Africa
and Middle East

2.7%

20,00010,00002011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022

13

Japanese Flavors and Fragrances Market Size
• Flavors account for approximately 80% of the Japanese flavors and fragrancesmarket (approx. 50% of the global market)
Japanese flavors and fragrancesmarket sales (Billion yen)

Breakdown of flavors and fragrances(FY2022)

Source of reference :Japan Flavor & Fragrance Materials
Association Magazine

14

Ⅳ．Management Policy

15

Management Policy
Become an Organizationthat takes on challenges

Strengthen Proposal
Capabilities

Focus Areas

Promote Reform
Concentration and Selection
Promote Human Capital Management
Accelerate Expansion in Overseas Market
Strengthen Sustainability Initiatives

Basic Strategies
ExpandCompounded
Flavors andFragrances
Sales

Secure Profits
in Domestic
MarketGrowth inOverseas
Market16

Ⅴ．Global Strategy

17

Domestic Strategies

Basic Strategy: Expand market share by anticipating new market demand caused bydeclining birthrate and aging population, as well as growing health consciousness

Fragrances
15％

Current initiatives and progress
Enhance customer
success• Strengthen collaboration between sales, research, and marketing
departments under the Business Solutions Division• Enhance the quality of proposals ⇒ Utilizing marketing data, enhance
technical materials, and promote sales activities utilizing R&D results

Strengthen R&D
capabilities

・ Speed up R&D ⇒ Review operations and work to improve operational efficiency
・ Create new value ⇒ Utilize AI technology and promote open innovation

Promote solution sales

Address expansion inflavor and fragrance
applications

Promote humancapital management

Flavors 85％

Sales breakdown• Focus on the development of flavors to substitute for food ingredients and strengthen
response to SDGs
⇒ Focus on applications among dairy products, vegetables, fruit juices, and alternative
meat market (soy meat, etc.)• Strengthen measures in new sectors such as health foods, medical foods, and needs
related to masking odors in day-to-day life
⇒ Propose new ingredients, ingredients that make health-conscious foods delicious, etc.
•

Continue to examine and take improvement measures, considering human resources as capital⇒ Maximize the value of human resources to increase the mid- to long-term corporate
value

FY2023
Net sales: 39.7 billion yen(+1.4% Yr/Yr)
Operating profit: 4.5 billion yen(-11.9% Yr/Yr)*Reference
EBITDA：6.2 billion yen(-9.3% Yr/Yr)（Plan）（Plan）（Plan）

18

Promote human capital management
Continue to examine and take improvement measures, considering human resources as capital⇒ Maximize the value of human resources to increase the mid- to long-term corporate value

Combination of management
strategies and HR strategies

Promotion of human resource
education programs• Create culture that is resilient to change andtakes on challenges• Implement HR system reform⇒Started introduction of a new HR system
in FY2021, completed in FY2023• Systematically conduct layer-specific training• Launch in-house business school• Conduct OJT and job rotation• Consider the introduction of education
programs for overseas human resources

Promote human capitalmanagement
Development of a comfortable work
environment• Conduct a company-wide risk survey⇒Identify human rights-related risks and takea countermeasures• Consider and introduce various systems todevelop a more comfortable work
environment• Promote labor safety and health measures

Enhancement of disclosure• Set KPIs for “Human Rights and Labor”
in the CSR policy⇒To be disclosed in the Sustainability Report* KPI
Percentage of women, mid-careers, and foreign
employees in managerial positions, and percentageof evaluation interviews performed for setting job
targets

19

Overseas Strategy –U.S.–

Basic Strategy: Increase sales in the savory, health, and beverage sectors

Current initiatives and progress

Realization of
MISSION synergies•

Realize a synergetic effect of the completed merger of THUSA and MISSION•

Promotion of second plant construction plan as part of measures to create a new
production system (California)⇒Phase 1 construction completed with operations from June 2022, andPhase 2 construction has started in May 2023
⇒With increased production capabilities, able to adequately respond to
future business expansion

Create new
production system

Strengthen marketing systems and ensure pipeline management⇒ Formulate sector-specific long-term growth strategies and client-specific strategies based onmarket trend analysis, etc.
Despite being affected by the slowdown of the whole U.S. flavor industry, orders are on a recovery
trend
Aim for recovery of net sales and operating profit for FY2024•

Measures to restore
business performance
Utilize and deploy
Japanesetechnology

Sales breakdown

•

•
•
•

Bridge to Tokyo project:
Project team currently working to utilize and deploy Japanese technology in the U.S.
Localization of some technologies in the United States completed, which was responded to byclients positively
Promote sharing of formulas and technical information with R&D in Japan

FY2023
Net sales: 91.5 million U.S. dollars(12.7 billion yen, -6.3% Yr/Yr)
Operating loss: 1.2 million U.S.
dollars(0.16 billion yen)
*Reference
EBITDA：13.1 million U.S. dollars(1.83 billion yen, -23.7% Yr/Yr)(Plan)(Plan)(Plan)* Savory flavors
Salty flavors used in savory snacks,
dressings, seasonings, and other products

20Overseas Strategy –China–
Basic Strategy: Grow earnings through various measures based on a stronger organizational foundation

Current initiatives and progress••

Utilize marketing functions⇒ Develop strategic approaches to customers, tap unentered sectors andpotential demand
Focus on large and midsize local companies and utilize agents to
expand sales area
Deepen collaboration between sales, research, and marketing
Thoroughly manage pipelines and sales activities•

Thorough profit management ⇒ Aim for growth both in terms of sales and profit•

Strengthen sales
systems

Improve profitability
Strengthen researchsystems

Fragrances
20％

Flavors
80％
Sales breakdown

New research building construction project underway⇒ Construction of building has completed in November 2023, operation planned to start in
February 2024
⇒ Aim to strengthen research functions and improve operational efficiency• Promote sharing of formulas and technical information with R&D in Japan•

FY2023
Net sales: 542 million yuan
(10.6 billion yen, +4.6% Yr/Yr)
Operating profit: 139.2 million
yuan(2.73 billion yen, +22.4% Yr/Yr)*Reference
EBITDA：172.5 million yuan
（3.39 billion yen, +18.2% Yr/Yr ）(Plan)(Plan)(Plan)

21

Overseas Strategy –Southeast Asia–
Basic Strategy: Increase sales through collaboration between manufacturing and sales bases in Malaysia (THKL) andsales sites in Thailand and Indonesia
Fragrances 8％

Current initiatives and progress
Strengthen sales
systems• Acquire sales personnel and strengthen organization for new customer
development• Appoint someone to take responsibility for the Southeast Asian region⇒ Coordinate organic collaboration among Southeast Asian bases• Thoroughly manage pipelines and sales activities

Flavors 92％

Sales breakdown

Speed up responses tocustomers• Promote utilization of application laboratories ⇒ Respond quickly to customer needs• Improve efficiency by expanding library and utilizing flavor kits

Strategic development
in Southeast Asia
using THKL as a hub• Established Corporate Planning Office at THKL in order to formulate and promotestrategies for Southeast Asia.
• Utilize THKL as a hub in Southeast Asia (for addressing Halal demand)• Guidance on research and production with personnel dispatched from Japan• Promote efficient R&D by systemizing operations• Promote sharing of formulas and technical information with R&D in Japan• Promote new plant construction plan in Malaysia（Billion yen)

Yr/Yr
+8.5%

Yr/Yr
+31.1%

Yr/Yr+10.2%

Yr/Yr
+4.6%

Yr/Yr
+7.3%

Yr/Yr
+7.3%

FY2023
Net sales: 4.07 billion yen(+10.2% Yr/Yr)
Operating profit: 0.67 billion yen(+11.5% Yr/Yr)*Reference
EBITDA： 0.83 billion yen(+9.7% Yr/Yr)* Net sales are calculated by summing net export sales to Southeast Asia, which are included in T.Hasegawa's non-consolidated net sales* T.HASEGAWA (SOUTHEAST ASIA) CO., LTD. (Thailand) has been included in the scope of consolidation since FYE September 2022. For conformity,
the figures before FYE September 2021 have been revised to include the company retroactively

22Basic Policies Related to Business Portfolio• Develop the businesses based on three basic strategies: (1) Expand Compounded Flavors andFragrances Sales, (2) Secure Profits in Domestic Market, and (3) Growth in Overseas
Market• Achieve abundant and healthy living through aromas and contribute to the creation of asustainable society■ Entered □ Not entered
Earnings foundation
Japan

FlavorBusiness
Providing flavorsthat make fooddelicious

U.S.

China

 Broad usage in thebeverage and foodindustries

 Usage mainly in savory
foods, beverages, andhealth sector

 Usage mainly inbeverages and instantnoodles Strengthen response to
SDGs• Develop flavors to
substitute for foodingredients• Capital and businessalliance with DAIZ Inc.

 Trade mainly with local
companies Trade mainly withinternational and local
companies Strengthen measures in
new sectors• Health foods, medical
foods, etc.

 Strengthen collaboration
with research
departments in Japan

 Broad usage in daily
necessities and cosmetics
industries
 Strengthen measures in
new sectors
Fragrance• Address need to mask
Businessodors in day-to-day life,etc.
• Propose ways to resolve
Providing
discomfort withfragrances that add
fragrancescolor to various
aspects of life

Growth drivers

 Strengthen response to
SDGs• Develop environmentallyfriendly fragrances Expand business throughM&A• Strengthen sweet flavors
with M&A in 2020

T.Hasegawa Group has yet
to enter Tap unentered sectors
and potential demand• Focus on large andmidsize local companies• Expand area of sales byutilizing agents

Southeast Asia

 Usage mainly in seasoning
powders and beverages• Target further expansion
in beverage sectors
 Strengthen collaboration
between sites• Increase sales in Malaysia,
Thailand, and Indonesia
 Expand operations into
countries around sites• Expand into Vietnam, thePhilippines

 Usage mainly in daily
necessities industry
 Trade mainly with local
companies

Produ
ction

 Focus on expansion
among toiletry makers
 Strengthen collaboration
with research
departments in JapanSales Address with
exports fromJapan
⇒ Consider local
production basedon businessdevelopment
 Usage mainly
among body careproduct makers
 Focus on acquiring
new customers

23Summary of Global Strategies
Japan• Strengthen collaboration between sales, research, and marketing departments
under the Business Solutions Division• Speed up R&D and create new value• Focus on the development of flavors to substitute for food ingredients and strengthen
response to SDGs
• Promote human capital management⇒ Maximize the value of human resources to increase the mid- to long-term
corporate value

U.S.

• Realize a synergetic effect of the merger of THUSA and MISSION• Completed the first phase of the Second Plant construction project and entered full-scale
operation in June 2022, and entered the second phase of the project in May 2023
• Despite being affected by the slowdown of the whole U.S. flavor industry, orders
are on a recovery trend⇒ Aim for recovery of net sales and operating profit for FY2024

China• Utilize marketing functions to focus on large and midsize local companies, and utilize
agents to expand sales area
• Ensure profit management, aiming to expand the earnings from sales and profit
perspectives• New research building construction project is underway⇒ Construction of the building progressed as planned and completed in November
2023, and the building is scheduled to be in operation in February 2024
• Promote sharing prescriptions and technical information with R&D in Japan

Southeast
Asia• Established Corporate Planning Office in Malaysia in order to formulate and promotestrategies for Southeast Asia.
• Speed up customer response by expanding library and utilizing flavor kits
• Promote efficient R&D by systemizing operations• Promote sharing prescriptions and technical information with R&D in Japan• Promote new plant construction plan in Malaysia
24VI. Medium-TermThree-Year Plan Overview

25Medium-Term Three-Year Plan (Consolidated)
T.HASEGAWA
non-consolidated

Expect sales increase by promoting solution sales through strengthening collaboration between sales,
research, and marketing departments, strengthening R&D capabilities, and addressing expansion inflavor and fragrance applications

U.S.

Increase sales in the savory, health, and beverage sectors

China

Strengthen sales systems by utilizing marketing functions and deepening collaboration between sales,
research, and marketing and expect sales increase by developing strategic approaches to customers
and tapping unentered sectors and potential demand

Malaysia

Expect higher sales by strengthening the cooperation among business sites in Southeast Asia,
strengthening sales systems to develop new customers, and speeding up customer response, etc.

(Million Yen)

(Billion Yen)

FY23（Actual）

FY24（Plan）

FY25（Plan）

Net Sales

64,87466,50068,500

Cost of Sales

39,18539,07039,900Operating Profit

7,507

8,300

9,100

10,300Ordinary Profit

8,185

8,800

9,600

10,800Net Profit

6,671

6,750

7,150

7,900

70

13,101
13,867¥137.00/$¥137.00/$¥19.68/RMB ¥19.50/RMB ¥19.50/RMB

15,199¥137.00/$¥19.50/元

60

EBITDA
Exchange Rate

12,119¥138.98/$

FY26（Plan）

71,500 Net Sales and Operating profit of T. HASEGAWA consolidated
41,300Net Sales
Operating Profit

Net Sales
80

2.5%

3.0%

4.4%

40

Cost of Sales to Net Sales

60.4%

58.8%

58.2%

57.8%

11.6%

12.5%

13.3%

14.4%

30

Operating Profit to Net Sales
Ordinary Profit to Net Sales

12.6%

13.2%

14.0%

15.1%

Net Profit to Net Sales

10.3%

10.2%

10.4%

11.0%

10

EBITDA to Net Sales

18.7%

19.7%

20.2%

21.3%

0

46.5%

47.2%

48.0%

48.1%

Overseas net sales as a percentage
of consolidated net sales*The Group's medium-term three-year plan is revised each fiscal year. See page 48 for details.
*Net profit in the table refers to profit attributable to owners of parent*Savory flavors: Flavors used in savory snacks, dressings, seasonings, and other salty products

Yr/Yr
+4.0%

Yr/Yr
+2.5%

Yr/Yr
+3.0%

Yr/Yr
+4.4%

20
15

50

4.0%

Sales Yr/Yr

Operating Profit

10

20

5

2023

2024

2025

2026

0

（Plan） （Plan） （Plan）

26

Capital Expenditures, Depreciation, and R&D Expenses• T.Hasegawa (non-consolidated) DX promotion and IT reform project

Actual: FY2022 Approx. 0.5 billion yen, FY2023 Approx. 0.5 billion yen
Plan: FY2024 Approx. 1.0 billion yen, FY2025 Approx. 1.5 billion yen, FY2026 Approx. 1.5 billion yen• T.Hasegawa (non-consolidated) project of the Fukaya plant

Plan: FY2025 Approx. 3.0 billion yen, FY2026 Approx. 3.0 billion yen• U.S. second plant construction plan

Actual: FY2020～FY2023 Approx. 3.1 billion yen)
Plan: FY2024 Approx. 0.9 billion yen, FY2025 Approx. 0.8 billion yen)

• China new research building construction plan

Actual: FY2022 Approx. 0.3 billion yen, FY2023 Approx. 0.6 billion yen
Plan: FY2024 Approx. 0.9 billion yen• Suzhou, China new plant construction plan
Plan: FY2026 Approx. 3.0 billion yen• Malaysia new plant construction plan

Plan: FY2024 Approx. 1.5 billion yen, FY2025 Approx. 1.5 billion yen, FY2026 Approx. 1.5 billion yen• R&D expenses trended at around 8% of consolidated net sales(Million Yen)

CapitalInvestment
Depreciation& Amortization
R&D
Expenses

FY2023
ActualFY2024Plan

FY2025Plan

FY2026
Plan

4,256

6,742

9,482

11,326

3,700

3,901

3,988

4,160

5,247

5,586

5,675

5,790
27

VII. Capital Policy

28Capital Policy
Basic Policy• Maintain a level of shareholders' equity that will enable us to execute growth investments and appropriately
respond to risks, in order to achieve sustainable growth in corporate value and maximize it going forward

Policy on Use of Funds• Appropriately use funds, taking into consideration factors such as the maintenance of a sound financial
position and enhancement of capital efficiency- Shareholder returns
Pay dividends from surplus twice a year, including interim and year-end dividends, targeting a consolidated
payout ratio of approximately 35%- Capital investment
Investment to increase production capacity for growth, as well as renewal and maintenance of existing
facilities- M&A
Give active consideration and judge comprehensively from the perspectives of market size, business risk, andacquisition price, etc.
Achieve M&A with expected synergies in terms of customer networks, technology, human resources, etc.
- Share buybacks
Consider if conditions (PBR, etc.) set by our company are met

Investment Securities• Reduce the total number of shares held from the perspective of improving capital efficiency, etc. (someshares have already been sold and the Company will continue to consider opportunities to sell shares)• Each year, the Board of Directors verifies the appropriateness of holding shares from a medium- to long-term
perspective, based on the holding purpose, economic rationality, and other factors
29Capital Policy
Shareholder Returns• Strive to return profits to shareholders in accordance with business performance, while also securing thenecessary internal reserves to further strengthen the Group's management foundations and engage infuture business development• Pay dividends from surplus twice a year, including interim and year-end dividends, targeting a
consolidated payout ratio of approximately 35%• Introduced a shareholder benefit program in FYE September 2015 to encourage investors to hold theCompany’s shares over the medium- to long-term

100

50.0%

80
32.6%

33.6%

37.6%

37.8%

40.0%

31.3%

60

30.0%

40

20.0%

20
0

55

61

61

62

40

2020

10.0%

2021

2022

2023

2024
（計画）
(Plan)

0.0%30

Capital Policy
Sale of Investment Securities(Completed)• February 3, 2023 : Published “Notice Concerning Expected Recording of Gain on Salesof Investment Securities (Extraordinary Income)”• Recorded extraordinary gains on sales of investment securities related to the press
release for FY2023[Reason][Shares sold][Gain on sale]: Review of investment securities: 2 listed securities held by the Company:

FY2023Gain on Sales of Investment Securities(Extraordinary Income)

１Q

－

２Q

253 million yen

3Q（Plan）

949 million yen

Total

1,203 million yen* Sale completed on June 21, 2023

(Reference)
Ratio of investment securities to consolidated net assets
FY 2021

FY 2022

FY 2023

18.2％

11.3％

10.7％

* Aim for less than 10% by FY2026

31

Ⅷ．Basic Policy on
IR Activities

32Basic Policy on IR Activities
Basic Policy

Established IR department in Corporate Planning Div. to strengthen
IR activities and secured opportunities for proactive dialogue

Our initiatives• Actively respond to requests forindividual interviews• Hold meetings with foreign
institutional investors in English(President & CEO, and several
persons in charge ofoverseas IR)• High foreign ownership↓• Equally disclose information
to domestic and foreign investors↓

Strengthen
overseas
IR activity

Individualinterview

Financialresults briefing

Enhanceddisclosure• Secure opportunities for
the President & CEO to
directly provide explanations• Post financial results briefing
presentation materials (inJapanese and English), video of
meetings, and summaries of Q&A
sessions (in Japanese andEnglish) on the Company’s
websiteMake limited interview
time efficient• Post IR-related materials(in Japanese and English)on the Company’s
website• Strive to improve English
disclosure materials anddisclose them promptly• Contracted an external researchcompany to issue our analysis reportquarterly (in Japanese and English)⇒ Timely disclosure
33

Ⅸ．Accompanying Materials

34

Top 10 Companies by Share of Net Sales in the Global Flavors andFragrances Market

Million US$
Company name
1

2
3
4
5
6
7
8
9
10

Country

Sales (2022Yr) Market Share

IFF

U.S.

9,130

26.3%

Givaudan

Switzerland

7,454

21.4%

Firmenich

Switzerland

4,946

14.2%

SymriseGermany

4,835

13.9%

ADM

Germany

3,769

10.8%

Mane SAFrance

1,779

4.5%

Takasago

Japan

1,421

3.6%

Sensient Technologies

U.S.

738

2.1%

Robertet SA

France716

1.8%

T.Hasegawa

Japan

497

1.4%

35,286100.0%

Total* Estimated by the Company based on information disclosed by each company* Excluding the following segments
Takasago: Real Estate Segment; Sensient Technologies: ColorGroup ・ AsiaPacific Group;
Robertet: Les actifs* Nourish Segment and Scent Segment only for IFF, and Human Nutrition only for ADM

35

Top 10 Companies by Share of Net Sales in the Japanese Flavors andFragrances Market

Others14.1%
FY2022：14.3%

Company SI
5.8%
FY2022：5.5%

Company T
33.4%
FY2022：32.5%

Company SO
5.9%
FY2022: 6.1%

Company O
10.6%
FY2022：11.2%

Company G
11.7%

T.Hasegawa
18.5%
FY2022：18.5%

FY2022：11.9%(As of Mar. 2023）*1 Market shares calculated by taking the total non-consolidated net sales of the top 10 companies as 100, based ondata from a private research organization*2 The Company’s FYE in September; T, SO, and SI in March; and G and O in December
The Company's net sales in the above graph are calculated for the period from April 2022 to March 2023
36

Sales Breakdown• The Company specializes in high value-added compounded flavors and fragrances• High-mix production: Sales of approximately 12,000 flavors and fragrances per year
(Million yen)

T. Hasegawa

Company T(Consolidated）(Consolidated）

FY ended in Sep. 2023

FY ended in Mar. 2023

Sales

Share

Sales

Share

Flavors

57,07588.0%

105,551

56.5%

Fragrances

7,799

12.0%

56,39330.2%

Synthesized Aroma Chemicals－－

23,420

12.5%

Others

－

－

1,426

0.8%

64,874100.0%

186,792

100.0%

Total
Ratio of gross profit to sales

39.6%

29.1%

Ratio of operating profit to sales

11.6%

3.2%

* Synthesized Aroma Chemicals for Company T shows the total amount from the aroma
ingredients and fine chemicals segments

Fragrances

SynthesizedAroma Chemicals

Fragrances

37

Breakdown of Flavor Segment Customers by Industry• Many sales are to the beverage industry, and sales are seasonal
To other industries
Approx. 11%
To seasoning
industry
Approx. 11%

To beverageindustry
Approx. 32%

To instant noodle
industry
Approx. 9%

To sweet andsavory snacks
industry
Approx. 13%

To dairy industry
Approx. 24%

Note: Reference data is calculated by taking the cumulative total net sales(non-consolidated) of customers classifiable by industry for FYE
September 2023 as 100

38

Analysis of Changes in Consolidated Statement of Profit•

Operating profit decline factors
Mainly due to deterioration in the cost of sales ratio and increase in SG&A expenses(Million yen)
前期
FY2022(Actual)（実績）

当期
FY2023(Actual)（実績）

増減
Change要因
Factor

金額
Amount％62,398 100.0% 64,874 100.0%

2,476

4.0% of the yen) and T.Hasegawa (non-consolidated)

売上原価
Cost
of sales 36,776

58.9% 39,185

60.4%

2,409

Cost-of-sales ratio deteriorated due mainly to increase of raw material price,
6.6% 増収の一方で原料高騰の影響等により売上原価率は悪化
while net sales increased

25,622

41.1% 25,689

39.6%

67

0.3%

SG&A expenses 17,570

28.2% 18,181

28.0%

611

3.5% 増加額のうち、円安要因は600百万円
Of the increase, 600 million yen is attributable to yen down

8,051

12.9% 7,507

11.6%

-544

-6.8%

売上高
Net
sales

売上総利益
Gross
profit
販売費及び一般管理費

営業利益profit
Operating

中国子会社、米国子会社（円安の影響）、当社単体の売上増加
Higher sales of Chinese subsidiaries, U.S. subsidiaries (due to depreciation
増収額のうち、円安要因は2,120百万円
Of the increase, 2,120 million yen is attributable to yen down

（為替差益）(Foreign exchange gains)

Ordinary
profit経常利益

9,075

14.5% 8,185

12.6%

-890

FY2022:Foreign exchange gains: 518 million yen
前期
518百万円の為替差益-9.8% FY2023: Foreign exchange gains:

85 million yen

当期85百万円の為替差益* In addition
to decreased operating profit, decrease in foreign exchange
gains of 432 million yen affected ordinary profit※営業減益に加え、差額432百万円が経常減益要因
Profitbefore
税引前当期純利益
income taxes

11,267

18.1% 9,322

14.4% -1,944 -17.3%

Net
profit
当期純利益

8,007

12.8% 6,671

FY2022:Losses in non-controllinginterests: (53) million yen
非支配株主持分損益△53百万円
10.3% -1,335 -16.7% 前期* Net profit refers to profit attributable to owners of parent

39Analysis of Changes in Consolidated Balance Sheet(Million yen)
FY2022

FY2023

ChangeFactorCurrent assets• Increase in cash and cash equivalents: 3,348 million yen• Increase in Trade receivables: 1,141 million yen

Non-current
assets• Increase in property, plant and equipment: 1,562 million yen• Decrease in intangible assets: (570) million yen

Total assets

Current
liabilities• Decrease in accounts payable: (786) million yen• Decrease in income taxes payable: (874) million yen

Non-current
liabilities• Increase in lease liabilities 1,107 million yen

Total liabilities

Net assets• Net profit: 6,671 million yen• Increase in foreign currency translation adjustment: 1,253 millionyen• Decrease in valuation difference on securities: (103) million yen• Dividends of surplus: (2,551) million yen

Total liabilities
and net assets

40

Consolidated Statement of Cash Flows(Million yen)
前期
FY2022

Cashflows from
営業活動による
operating activities

キャッシュ・フロー

8,001

当期
FY2023

8,012

増減
Change

当期の主要科目
Factor

・税金等調整前四半期純利益 9,322百万円• Profit before income taxes: 9,322 million yen
・減価償却費3,700百万円• Depreciation:
3,700 million yen• Amortization of912百万円
goodwill: 912 million yen
・のれん償却額
11 • Gain on sales of investment securities: (1,203)
・投資有価証券売却益△1,203百万円
million yen
・売上債権の増加額△1,042百万円• Increase in trade receivables: (1,042) million yen•
Incometaxes
paid:(3,226)
millionyen
・法人税等の支払額 △3,226百万円• Purchase of property,
plant and equipment: (2,798)
・有形固定資産の取得△2,798百万円
million yen△703百万円△ 4,300 ・無形固定資産の取得• Purchase of intangible fixed assets (703) million yen
・投資有価証券の売却
1,270百万円• Sales of investment securities:
1,270 million yen

投資活動によるCashflows frominvestingactivities
キャッシュ・フロー1,208△ 3,092

財務活動によるCashflows fromfinancing
activities
キャッシュ・フロー△ 2,721△ 2,657

Effectof exchange
現金及び現金同等物
rate change on cashに係る換算差額
andcash equivalents

1,559

268

△ 1,290

Net
increase
現金及び現金同等物(decrease) in cashの増減額
andcash equivalents

8,047

2,531

△ 5,515Cashand cash
現金及び現金同等物
equivalents atの期首残高
beginningof period

18,86327,425

8,562

Cashand cash
現金及び現金同等物
equivalents at end ofの期末残高
period27,42529,9572,531△2,552百万円
64 ・配当金の支払• Dividends paid:(2,552) million yen

41Capital Expenditures, Depreciation, and R&D Expenses (Consolidated)(Million yen)

FY2023Plan

FY2023
ActualProgress(%)

CapitalInvestment

6,404

4,256

66.5%

Depreciation& Amortization

3,705

3,700

99.9%

Amortizationof Goodwill

912

912

100.0%

R&D
Expenses

5,316

5,247

98.7%

* Depreciation includes amortization of customer-related assets

42

T.Hasegawa non-consolidated (Actual)(Million yen)
FY2022(actual)AmountFY2023(targets revised on August 7,2023)

Share

AmountShare

FY2023(actual)AmountChangeShareAmountYr/Yr

Vs. target
Amount％％Net sales

39,174100.0%

39,700100.0%

39,711100.0%

537

1.4%

11

0.0%

Cost of sales

23,36859.7%

24,14060.8%

24,473

61.6%

1,104

4.7%

333

1.4%

Gross profit

15,80640.3%

15,56039.2%

15,238

38.4%

-567

-3.6%

-321

-2.1%

SG&A expenses

10,65427.2%

10,76027.1%

10,699

26.9%

45

0.4%

-60

-0.6%

Operating profit

5,151

13.2%

4,800

12.1%

4,538

11.4%

-612

-11.9%

-261

-5.4%

Ordinary profit

8,992

23.0%

5,230

13.2%

5,125

12.9%

-3,867-43.0%

-104

-2.0%

Profit before
income taxes

11,200

28.6%

6,390

16.1%

6,281

15.8%

-4,918-43.9%

-108

-1.7%

Net profit

8,700

22.2%

4,640

11.7%

4,679

11.8%

-4,021-46.2%

39

0.8%• Net sales increased mainly due to higher sales in the flavor segment• Despite the increase in net sales, operating profit decreased due to deterioration in
cost-of-sales ratio (affected by material price rises and increased utility costs)

43

Consolidated U.S. Subsidiaries (Actual)* Consolidated statements of profit of the Company's two U.S. subsidiaries (T.HASEGAWA U.S.A., INC. and MISSION FLAVORS &FRAGRANCES, INC.)(Million yen)

Yen Basis
Net Sales
Cost of sales
Gross profit
SG&A expenses
Operating profit
Ordinary profit
Net profit

FY2022
AmountShare
12,157100.0%
7,488
61.6%
4,669
38.4%
4,158
34.2%
510
4.2%
499
4.1%
443
3.6%

FY2023
Share
Amount100.0%
12,720
8,395
66.0%
4,325
34.0%
4,493
35.3%
-168
-163
-134
-

Yen 124.46/USD

Yen 138.98/USD

Yr/Yr
Amount
562
906
-344
335
-679
-662
-577

％
4.6%
12.1%
-7.4%
8.1%
-

Yen down 11.7%(Thousand US$)

Local Currency
Basis
Net Sales
Cost of sales
Gross profit
SG&A expenses
Operating profit
Ordinary profit
Net profit

FY2022
AmountShare
97,685100.0%
60,16961.6%
37,51638.4%
33,413
34.2%
4,102
4.2%
4,012
4.1%
3,560
3.6%

FY2023
AmountShare
91,527100.0%
60,40666.0%
31,12034.0%
32,33435.3%-1,213-1,174
-967
-

Yr/Yr
Amount-6,158237-6,395-1,079-5,316-5,187-4,527

％
-6.3%
0.4%
-17.0%-3.2%-• Sales fell in local currency as the whole flavor industry slowed on the back of concerns about anunclear economic outlook Yen-based sales increased due to depreciation of the yen• Operating profit decreased due to deterioration in cost-of-sales ratio (mainly affected by material pricerises, increase in depreciation costs due to the commencement of the second plant operation, anddecrease in production volume)44

Consolidated Chinese Subsidiaries (Actual)* Consolidated statements of profit of the Company's two consolidated subsidiaries in China (T.HASEGAWA FLAVOURS ANDFRAGRANCES (SHANGHAI) CO., LTD. and T.HASEGAWA FLAVOURS (SUZHOU) CO., LTD.)(Million yen)

Yen Basis
Net Sales
Cost of sales
Gross profit
SG&A expenses
Operating profit
Ordinary profit
Net profit

FY2022
AmountShare
9,828
100.0%
5,793
58.9%
4,035
41.1%
1,878
19.1%
2,156
21.9%
2,312
23.5%
1,784
18.2%

FY2023
AmountShare
10,673100.0%
55.8%
5,956
4,716
44.2%
1,977
18.5%
2,739
25.7%
2,883
27.0%
2,202
20.6%

Yen 18.96/RMB

Yen 19.68/RMB

Yr/Yr
Amount
844
162
681
98
582
571
417

％
8.6%
2.8%
16.9%
5.3%
27.0%
24.7%
23.4%

Yen down 3.8%
(Thousand RMB)

Local Currency
Basis
Net Sales
Cost of sales
Gross profit
SG&A expenses
Operating profit
Ordinary profit
Net profit

FY2022
AmountShare
518,387
100.0%
305,56758.9%
212,82041.1%
99,063
19.1%
113,757
21.9%
121,951
23.5%
94,14518.2%

FY2023
AmountShare
542,330
100.0%
302,65455.8%
239,675
44.2%
100,46318.5%
139,21125.7%
146,52827.0%
20.6%
111,897

Yr/Yr
Amount23,942-2,912
26,8541,400
25,454
24,577
17,751

％
4.6%
-1.0%
12.6%
1.4%
22.4%
20.2%
18.9%

・Net sales increased mainly as a result of higher sales in the flavor segment
・Operating profit increased as a result of higher sales and improved cost-of-sales
ratio
45

Malaysian Subsidiary (Actual)* Statement of profit of T.HASEGAWA FLAVOURS (KUALA LUMPUR) SDN. BHD.
(Million yen)

Yen Basis
Net Sales
Cost of sales
Gross profit
SG&A expenses
Operating profit
Ordinary profit
Net profit

FY2022
AmountShare
1,358
100.0%
748
55.1%
610
44.9%
422
31.1%
187
13.8%
219
16.2%
177
13.1%

FY2023
AmountShare
1,686
100.0%
948
56.2%
738
43.8%
458
27.2%
279
16.6%
302
18.0%
203
12.0%

Yen 28.90/MYR

Yen 30.71/MYR

Yr/Yr
Amount
328
200
128
36
91
83
25

％
24.2%
26.8%
21.1%
8.7%
49.0%
37.9%
14.2%

Yen down 6.3%
(Thousand Malaysian Ringgit)

Local Currency
Basis
Net Sales
Cost of sales
Gross profit
SG&A expenses
Operating profit
Ordinary profit
Net profit

FY2022
AmountShare
46,994100.0%
25,885
55.1%
21,10844.9%
14,612
31.1%
6,496
13.8%
7,604
16.2%
6,156
13.1%

FY2023
AmountShare
54,931100.0%
30,882
56.2%
24,04843.8%
14,940
27.2%
9,107
16.6%
9,865
18.0%
6,618
12.0%

Yr/Yr
Amount
7,937
4,997
2,939
328
2,611
2,261
462

％
16.9%
19.3%
13.9%
2.3%
40.2%
29.7%
7.5%

• Net sales increased mainly as a result of higher sales to savory snack
manufacturers• Operating profit increased as a result of higher sales46

Global Strategy - Actual and Plan by Region
T. HASEGAWA Non-consolidated(Billion yen)
2024

2025

2026

85.4

97.6

91.5

95.8

100.1

104.6

5.8

Operating Profit

6.1

4.1

-1.2

0.7

2.5

3.9

7.0

7.7

EBITDA

16.6

17.2

13.1

15.3

17.6

19.1

1.7%

2.5%

3.9%

50.0%

14.3%

-6.3%

4.7%

4.5%

4.5%

11.4%

11.9%

12.6%

13.5%

7.2%

4.2%

-

0.8%

2.5%

3.8%

15.7%

16.6%

17.0%

18.1%

19.4%

17.7%

14.4%

16.0%

17.7%

18.3%

37.3

39.1

39.7

40.4

41.4

43.0

Operating Profit

3.8

5.1

4.5

4.8

5.2

EBITDA

5.8

6.8

6.2

6.7

1.5%

4.9%

1.4%

10.4%

13.2%

15.6%

17.5%

EBITDA

to Net Sales（Plan） （Plan） （Plan）

China(Million RMB)
2024

2025

to Net Sales(Billion yen)Southeast Asia
2024

2025

2026

2.8

3.6

4.0

4.2

4.5

4.9

162.3

Operating Profit

0.3

0.6

0.6

0.6

0.7

0.8

190.8

201.0

EBITDA

0.5

0.7

0.8

0.8

0.9

0.9

4.1%

4.3%

4.3%

8.5%

31.1%

10.2%

4.6%

7.3%

7.3%

25.7%

25.6%

26.0%

26.4%

12.9%

16.3%

16.5%

15.8%

16.4%

16.9%

31.8%

31.7%

32.4%

32.7%

18.1%

20.7%

20.6%

19.4%

19.8%

20.2%

518.3

542.3

564.0

589.1

614.6

Operating Profit

137.0

113.7

139.2

144.0

153.2

EBITDA

167.5

146.0

172.5

179.2

17.8%

-1.4%

4.6%

26.1%

21.9%

31.9%

28.2%

EBITDAEBITDANet Sales

525.9

to Net Sales

to Net Sales

2023

Net Salesto Net Sales

Operating Profit

2022

2023

Operating Profit

Yr/Yr（Plan） （Plan） （Plan）

2021

2022

Yr/Yr

Sales

2026

2021

Sales

2026

Net Sales

Net Salesto Net Sales

2025

2023

2023

Operating Profit

2024

2022

2022

Yr/Yr

(Million US$)
2021

2021

Sales

U.S.

（Plan） （Plan） （Plan）

Sales
Yr/Yr

Operating Profit
to Net Sales

EBITDA

to Net Sales（Plan） （Plan） （Plan）* Southeast Asia: T.HASEGAWA (SOUTHEAST ASIA) CO., LTD. (Thailand) has been included in the scope of consolidation since FY2022
For conformity, the figures before the FY2021 have been revised to include the company retroactively

47

Medium-Term Three-Year Plan (Consolidated)（Million yen）
FY23（Actual）
AmountShare

FY25（Plan）

FY24（Plan）%

AmountShare%AmountShare

FY26（Plan）%

AmountShare%

Net Sales

64,874 100.0%

4.0% 66,500 100.0%

2.5% 68,500 100.0%

3.0% 71,500 100.0%

4.4%

Cost of Sales

39,18560.4%

6.6% 39,070

58.8%-0.3% 39,900

58.2%

2.1% 41,300

57.8%

3.5%

Gross Profit

25,68939.6%

0.3% 27,430

41.2%

6.8% 28,600

41.8%

4.3% 30,200

42.2%

5.6%

SG&A Expenses

18,181

28.0%

3.5% 19,130

28.8%

5.2% 19,500

28.5%

1.9% 19,900

27.8%

2.1%

Operating Profit

7,507

11.6%

-6.8%

8,300

12.5%

10.6%

9,100

13.3%

9.6% 10,300

14.4%

13.2%

Ordinary Profit

8,185

12.6%

-9.8%

8,800

13.2%

7.5%

9,600

14.0%

9.1% 10,800

15.1%

12.5%

9,322

14.4% -17.3%

9,470

14.2%

1.6%

9,960

14.5%

5.2% 10,960

15.3%

10.0%

6,671

10.3% -16.7%

6,750

10.2%

1.2%

7,150

10.4%

5.9%

11.0%

10.5%

Profit before
Income Taxes
Net Profit

7,900* Net profit refers to profit attributable to owners of parent

48

This presentation is based on data as of November 10, 2023, and wascreated with the intention of providing information on future management
plans and results for the second quarter of the fiscal year ending
September 30, 2023.
The views expressed in this material are those of the Company at the timeof preparation. No guarantees are provided in relation to the accuracy orcompleteness of this information, and it is subject to change without noticein future. Please note that the Company will not accept responsibility forany omissions or errors in the data, expressions, etc., used in thisdocument.
This document has been prepared by the Company and all rights related toits contents belong to the Company. Please refrain from copying or
reprinting without permission.

49