T. Hasegawa Co., Ltd. · TSE:4958

T. Hasegawa — Q2 FY2025 Earnings Presentation

48 slides from T. Hasegawa's earnings presentation, May 22, 2025

  1. Slide 1: Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2025

    Financial Results for the Second Quarter of the Fiscal Year Ending March 31, 2025 May 22, 2025 T. HASEGAWA CO., LTD. Copyright© T. HASEGAWA CO., LTD. All Rights Reserved.

  2. Slide 2: Contents

    Contents 1 Ⅰ．Overview of Financial Statements Ⅱ．Business Environment Ⅲ．Global Strategy Ⅳ．Business Outlook Ⅴ．Capital Policy Ⅵ．Accompanying Materials Copyright© T. HASEGAWA CO., LTD. All Rights Reserved.

  3. Slide 3: Ⅰ. Overview of Financial Statements

    Ⅰ．Overview of Financial Statements Copyright© T. HASEGAWA CO., LTD. All Rights Reserved.

  4. Slide 4: Flavor and Fragrance Business Formulas

    Flavor and Fragrance Business 3 Ingredients Products (Compounded Flavors and Fragrances) Natural aromatics Flavors 調合 Compounding Synthesized Formulas Fragrances aroma chemicals Integration of research and development capabilities Flavorists : Experts who formulate flavors Perfumers : Experts who fo

  5. Slide 5: Market Environment

    Market Environment 4 Trends by Category (Japanese Market) ・2nd Quarter, FYE September 2025 (October 2024 to March 2025) Impact on Category Trend performance • Decrease of 2-3% on a volume basis due to the poor performance of hot drinks caused by a warm winter and price hikes for major products start

  6. Slide 6: Summary of Consolidated Performance

    Summary of Consolidated Performance 5 • Sales and Profit increased year on year Sales increased in all major regions, with strong performance in China contributing to net sales increase Net Sales：increased 2,370 million yen (7.1%) year on year Operating Profit：increased 223 million yen (5.2%) year o

  7. Slide 7: Analysis of Changes in Operating Profit

    Analysis of Changes in Operating Profit 6 • Factors behind the year on year 223 million yen (5.2％) increase in operating profit Factor Impact Details Sales increased in all major regions, with strong performance in China Net sales 1,862 contributing to net sales increase. Cost of sales △785 Cost of

  8. Slide 8: Net Sales by Segment

    Net Sales by Segment 7 • Sales growth factors Flavor：Net sales of Chinese subsidiary increased Fragrance：Net sales to Indonesia and South Korea increased （Million Yen） FY2024 2Q FY2025 2Q Change FY2025 2Q Segment Actual Actual Amount % Sales ratio Flavor 29,526 31,711 2,184 7.4% 88.5％ Fragrance 3,92

  9. Slide 9: Performance Overview by Regions

    Performance Overview by Regions 8 • Sales increased in all major regions (on a local currency basis). • In China, profits increased sharply by 33.7%. The U.S. posted an operating loss as of the first half. （Billion Yen） Japan U.S. Sales Profit Sales Profit increase decrease increase decrease FY2024

  10. Slide 10: Details of Business Performance in U.S.

    Details of Business Performance in U.S. 9 The U.S. posted an operating loss of 294 million yen in the cumulative second quarter • An operating loss was posted in the first quarter, but business performance recovered in the second quarter – Business performance in U.S. for each quarter (three-month p

  11. Slide 11: Ⅱ. Business Environment

    Ⅱ． Business Environment Copyright© T. HASEGAWA CO., LTD. All Rights Reserved.

  12. Slide 12: Size of Global Flavor and Fragrance Market (Estimated by the Company)

    Size of Global Flavor and Fragrance Market (Estimated by the Company) 11 ・Worldwide flavor and fragrance sales: Approx. 33.3 billion U.S. dollars (approx. 5 trillion yen) Europe, Africa, Middle East North America ‐ Market size：Approx. 11.7 billion US dollars ‐ Market size：Approx. 8.3 billion US doll

  13. Slide 13: Global Flavor and Fragrance Market (Estimated by the Company)

    Global Flavor and Fragrance Market (Estimated by the Company) 12 ・Global flavor and fragrance market in 2024: Grew approx. 3% Yr/Yr Global Flavor and Fragrance Market (Estimated by the Company) （Million US$） 40,000 2021 – 2024 CAGR South +5.6% 30,000 America Asia +7.7% 20,000 North America +2.5% 10,

  14. Slide 14: Japanese Flavor and Fragrance Market Size

    Japanese Flavor and Fragrance Market Size 13 ・Flavors account for approximately 80% of the Japanese flavor and fragrance market (approx. 50% in the global market) Japanese flavor and fragrance market sales (Billion yen) Breakdown of flavor and fragrance 300.0 Natural Aromatic （FY2024） Synthesized Ar

  15. Slide 15: Ⅲ. Global Strategy

    Ⅲ． Global Strategy Copyright© T. HASEGAWA CO., LTD. All Rights Reserved.

  16. Slide 16: Japan Strategy

    Japan Strategy 15 Basic Strategy: Expand market share by anticipating new market demand caused by declining birthrate and aging population, as well as growing health consciousness ・Promote the Fukaya Plant project and reinforcement of production system through DX of production division ・Promote huma

  17. Slide 17: Overseas Strategy –U.S.–

    Overseas Strategy –U.S.– 16 Basic Strategy: Increase sales in the savory, health, and beverage industries *Savory：Snacks, dressings, seasonings, and other salty products ・Acquisition of ABELEI, a flavor company in Illinois, U.S. Aim to create synergies ⇒PMI (Post Merger Integration) progressing on s

  18. Slide 18: Overseas Strategy –China–

    Overseas Strategy –China– 17 Basic Strategy: Grow earnings through various measures based on a stronger organizational foundation ・In order to increase capacity, a manufacturing subsidiary has been established (in December 2024) to build a new plant as the third production base in China ・Strengtheni

  19. Slide 19: Overseas Strategy –Southeast Asia–

    Overseas Strategy –Southeast Asia– 18 Basic Strategy: Increase sales through collaboration between manufacturing and sales bases in Malaysia (THKL) and sales bases in Thailand and Indonesia ・Plan to construct a new plant in Enstek Industrial Park, Malaysia (plant site already acquired) ⇒Meet growing

  20. Slide 20: Basic Policies Related to Business Portfolio

    Basic Policies Related to Business Portfolio 19 ・Develop the businesses based on three basic strategies: (1) Expand Compounded Flavors and Fragrances Business, (2) Secure Profits in Japanese Market, and (3) Growth in Overseas Market ・Achieve abundant and healthy living through aromas and contribute

  21. Slide 21: Ⅳ. Business Outlook

    Ⅳ．Business Outlook Copyright© T. HASEGAWA CO., LTD. All Rights Reserved.

  22. Slide 22: Impact of External Factors

    Impact of External Factors 21 ・Impact of changes in the economic environment is limited U.S. tariff policy • Estimated impact of tariffs (Consolidated basis)：90 million yen – Some imported raw materials at U.S. and China subsidiaries will be affected. – Policy of passing on any increases in purchase

  23. Slide 23: FY2025 Performance Outlook

    FY2025 Performance Outlook 22 ・No change in business performance from forecast disclosed on November 8, 2024 ・China and Southeast Asia expected to offset the downturn in operating profit in the U.S. ・Increases in both sales and profit anticipated on a consolidated basis (Million yen) Change Progress

  24. Slide 24: Ⅴ. Capital Policy

    Ⅴ．Capital Policy Copyright© T. HASEGAWA CO., LTD. All Rights Reserved.

  25. Slide 25: Capital Policy

    Capital Policy 24 Basic Policy ・Maintain a level of shareholders' equity that will enable the company 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 fu

  26. Slide 26: Capital Policy: Shareholder Returns

    Capital Policy 25 Shareholder Returns ・Reviewed the consolidated payout ratio policy, revising the target to around 40% from the previous target of around 35% ・For FY2025, a dividend increase is expected, with earnings per share projected at 74 yen ・December 23, 2024 : Published “Notice Concerning S

  27. Slide 27: Capital Policy: Capital Allocation

    Capital Policy 26 Capital Allocation Using operating cash flow and cash reserves as funding sources, approximately 32 billion yen in capital investments is planned over the three-year period from FY2025 to FY2027. Additionally, funds will be utilized for proactive shareholder returns and M&A activit

  28. Slide 28: Ⅵ. Accompanying Materials

    Ⅵ．Accompanying Materials Copyright© T. HASEGAWA CO., LTD. All Rights Reserved.

  29. Slide 29: Management Policy

    Management Policy 28 Become an Organization that takes on challenges Strengthen Proposal Capabilities Focus Areas Promote Reform Concentration and Selection Enhance Human Resources (Develop Human Resources, Hire Experienced Personnel） Accelerate Expansion in Overseas Market （ Capital Investment, M＆A

  30. Slide 30: Promote Human Capital Management

    Promote Human Capital Management 29 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 Promotion of human resource strategies and HR strategies e

  31. Slide 31: Basic Policy on IR Activities

    Basic Policy on IR Activities 30 Basic Policy Established IR department in Corporate Planning Division to strengthen IR activities and secured opportunities for proactive dialogues The Company's Initiatives ・Actively respond to requests ・High foreign ownership for individual interviews ↓ ・Equally di

  32. Slide 32: Top Companies by Share of Net Sales in the Global Flavor and Fragrance Market

    Top 10 Companies by Share of Net Sales in the Global Flavor and Fragrance 31 Market (Million US$) Company name Country Sales(2024Yr) Market Share 1 Givaudan Switzerland 8,422 21.4% 2 IFF U.S. 8,311 21.1% 3 dsm-firmenich Switzerland, Netherlands 7,822 19.8% 4 Symrise Germany 5,423 13.7% 5 ADM U.S. 3,

  33. Slide 33: Top Companies by Share of Net Sales in the Japanese Flavor and Fragrance Market

    Top 10 Companies by Share of Net Sales in the Japanese Flavor and Fragrance 32 Market Others 14.1% FY2023：14.1％ Company T Company SO 34.4% 5.4% FY2023：33.4％ FY2023 ：5.9％ Company SI 6.2% FY2023 ：5.8％ Company G 10.2% FY2023 ：11.7％ Company O T.Hasegawa 10.9% 18.7% FY2023 ：10.6％ FY2023：18.5％ （As of Mar.

  34. Slide 34: Sales Breakdown

    Sales Breakdown 33 ・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） FYE in Sep. 2024 FYE in Mar. 2025 Sales Share Sales

  35. Slide 35: Breakdown of Flavor Segment Customers by Industry

    Breakdown of Flavor Segment Customers by Industry 34 ・Many sales are to the beverage industry, and sales are seasonal To other industries Approx. 4% To instant noodle industry Approx. 10% To beverage industry Approx. 30% To seasoning industry Approx. 13% To sweet and savory snacks industry To dairy

  36. Slide 36: Trends in Quarterly Net Sales and Operating Profit

    Trends in Quarterly Net Sales and Operating Profit 35 ・The Company's performance tends to grow in the second half ・Net sales and operating profit for FY2025 exceeded those as of most recent second quarter Consolidated Sales for a Quarter Consolidated Profit for a Quarter FY2023 FY2024 FY2025 FY2023

  37. Slide 37: Analysis of Changes in Consolidated Profit and Loss Statement

    Analysis of Changes in Consolidated Profit and Loss Statement 36 (Million yen) FY2024 2Q FY2025 2Q Change (Cumulative (Cumulative Factor results) results) Amount ％ Sales increased in all segments in Japan, North America, and Asia Net sales 33,453 100.0% 35,823 100.0% 2,370 7.1% The net increase from

  38. Slide 38: Analysis of Changes in Consolidated Balance Sheet

    Analysis of Changes in Consolidated Balance Sheet 37 (Million yen) Sep. 30, Mar. 31, 2024 2025 Change Factor ・Increase in cash and deposits 5,204 million yen Current assets 72,241 72,250 8 ・Decrease in securities △4,998 million yen ・Increase in construction in progress included in other under proper

  39. Slide 39: Consolidated Statement of Cash Flows

    Consolidated Statement of Cash Flows 38 (Million yen) FY2024 2Q FY2025 2Q (Cumulative (Cumulative Change Major items in FY2025 2Q results) results) ・Net profit before income taxes 4,807 million yen ・Depreciation 2,036 million yen ・Decrease in trade receivable 1,837 million yen Cash flows from operat

  40. Slide 40: Capital Investment, Depreciation, Amortization of Goodwill, and R&D Expenses

    Capital Investment, Depreciation, Amortization of Goodwill, and R&D Expenses 39 (Consolidated) (Million yen) FY2025 2Q FY2025 Plan Progress (%) （Actual） Capital 10,673 1,793 16.8% Investment Depreciation 4,209 2,036 48.4% Amortization of 1,892 681 36.0% Goodwill R&D Expenses 5,875 2,812 47.9% * Depr

  41. Slide 41: Capital Investment, Depreciation, and R&D Expenses

    Capital Investment, Depreciation, and R&D Expenses 40 Approx. 32 billion yen of capital investment is planned over three years for organic business expansion ・Major Capital Investments (Billion yen) ～FY2024 FY2025 FY2026 FY2027 Three-year ～FY2027 Location (Actual) (Plan) (Plan) (Plan) Plan Total Tot

  42. Slide 42: T. Hasegawa non-consolidated (Actual)

    T. Hasegawa non-consolidated (Actual) 41 (Million yen) FY2024 2Q FY2025 2Q Yr/Yr Progress (Actual) （Actual） (vs FY2025 full-year Plan) Amount Share Amount Share Amount ％ Net Sales 19,819 100.0% 20,585 100.0% 766 3.9% 47.8% Cost of Sales 12,033 60.7% 12,537 60.9% 503 4.2% 48.3% Gross Profit 7,785 39.

  43. Slide 43: Consolidated U.S. subsidiary (Actual)

    Consolidated U.S. subsidiary (Actual) 42 *Statement of profit of T. HASEGAWA U.S.A., INC . (Million yen) FY2024 2Q FY2025 2Q Yr/Yr Yen Basis Amount Share Amount Share Amount ％ Net Sales 7,205 100.0% 7,885 100.0% 679 9.4% Cost of Sales 4,517 62.7% 4,929 62.5% 411 9.1% Gross Profit 2,687 37.3% 2,955 3

  44. Slide 44: Consolidated Chinese Subsidiaries (Actual)

    Consolidated Chinese Subsidiaries (Actual) 43 *Consolidated statements of profit of the Company‘s three consolidated subsidiaries in China (T. HASEGAWA FLAVOURS AND FRAGRANCES (SHANGHAI) CO., LTD., T. HASEGAWA FLAVOURS (SUZHOU) CO., LTD., and T. HASEGAWA FLAVOURS (PINGHU) CO., LTD. ) (Million yen) Y

  45. Slide 45: Malaysian Subsidiary (Actual)

    Malaysian Subsidiary (Actual) 44 * Statement of profit of T. HASEGAWA FLAVOURS (KUALA LUMPUR) SDN. BHD. (Million yen) Yen Basis FY2024 2Q FY2025 2Q Yr/Yr Amount Share Amount Share Amount ％ Net Sales 933 100.0% 1,088 100.0% 155 16.6% Cost of Sales 501 53.7% 560 51.5% 58 11.6% Gross Profit 431 46.3% 5

  46. Slide 46: Medium-Term Three-Year Plan (Consolidated)

    Medium-Term Three-Year Plan (Consolidated) 45 T.HASEGAWA Expect to expand sales through the promotion of solution sales by strengthening collaboration among sales, non- research, and marketing. Promote the strengthening of production systems to meet increasing demand consolidated Expect to increase

  47. Slide 47: Medium-Term Three-Year Plan (Consolidated)

    Medium-Term Three-Year Plan (Consolidated) 46 (Million yen) FY2024 (Actual) FY2025 (Plan) FY2026 (Plan) FY2027 (Plan) Amount Share Yr/Yr Amount Share Yr/Yr Amount Share Yr/Yr Amount Share Yr/Yr Net Sales 71,645 100.0% 10.4% 74,300 100.0% 3.7% 77,200 100.0% 3.9% 80,200 100.0% 3.9% Cost of 42,001 58.6

  48. Slide 48: This presentation is based on data as of May 9, 2025, and was created

    This presentation is based on data as of May 9, 2025, and was created with the intention of providing information on future management plans and results for the second quarter of the fiscal year ending September 30, 2025. The views expressed in this material are those of the Company at the time of p

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