Strengthening global expansion centered on China, Southeast Asia and the United States

「Beginning with the current interim consolidated period, the newly established 長谷川香料（平湖）有限公司 (reporting segment: Asia) was included in the scope of consolidation.」

「We will efficiently allocate management resources to the U.S., which we have designated as a priority region, and to Asia, particularly China and Southeast Asia, accurately assess market growth potential and consumer preferences, and formulate and implement business strategies in response to changes in the business environment. We will also invest to achieve sustainable growth over the long term and seek to expand performance in overseas markets.」

「We will advance Phase 2 construction at the second plant in Rancho Cucamonga, California, which began operations last year, to expand production capacity and improve production efficiency in the U.S.」

「We will efficiently allocate management resources to the U.S., which we have designated as a priority region, and to Asia, particularly China and Southeast Asia, accurately assess market growth potential and consumer preferences, and formulate and implement business strategies in response to changes in the business environment.」

「Because the importance to our Group of T. HASEGAWA (SOUTHEAST ASIA) CO., LTD. and 台灣長谷川香料股份有限公司, which had previously been treated as unconsolidated subsidiaries, increased, both were newly included in the scope of consolidation beginning with the first-quarter consolidated accounting period. Both subsidiaries are reported in the Asia segment.」

「Because the importance to our Group of the Thai subsidiary T. HASEGAWA (SOUTHEAST ASIA) CO., LTD. and the Taiwan subsidiary 台灣長谷川香料股份有限公司, which had previously been treated as unconsolidated subsidiaries, increased, both were newly included in the scope of consolidation beginning with the first-quarter consolidated accounting period.」

「Because the importance to our Group of the Thai subsidiary T. HASEGAWA (SOUTHEAST ASIA) CO., LTD. and the Taiwan subsidiary 台灣長谷川香料股份有限公司, which had previously been treated as unconsolidated subsidiaries, increased, both were newly included in the scope of consolidation beginning with the cumulative first-quarter consolidated period.」

「In China, we will focus on developing new customers and deepening relationships with existing customers through strategic sales activities that leverage our marketing capabilities, while implementing thorough raw-material and cost management to expand performance. We will also advance a project to construct a new research building to strengthen our research capabilities and improve operational efficiency. In Southeast Asia, to capture expected growth in demand for flavors, we will strengthen coordination among our bases in Malaysia, Thailand, and Indonesia under an overarching regional sales strategy, while focusing on developing surrounding markets such as Vietnam, the Philippines, and Myanmar.」

「During the cumulative first-quarter consolidated period, our consolidated subsidiary T. HASEGAWA U.S.A., INC. acquired all shares of MISSION FLAVORS & FRAGRANCES, INC. (MISSION), which manufactures and sells a range of food flavors in the U.S.」

「While working to expand our share of the domestic market, which is maturing as a result of the declining birthrate and aging population, further strengthening our global expansion is essential to pursuing future growth. In China, across Asia—particularly Southeast Asia—and in the U.S., which we have designated as priority regions, we will accurately assess market growth potential and consumer preferences, and formulate and implement business strategies that enable us to respond rapidly and flexibly to the fast-changing business environment.」

「In Southeast Asia, we established 台灣長谷川香料股份有限公司 to expand sales by strengthening our sales activities, as stable demand for flavors is expected to continue in the Taiwan market. We also opened application laboratories in Thailand, Indonesia, and Taipei to facilitate close communication with customers and respond promptly to their needs.」

「Beginning with the consolidated second-quarter accounting period, PT. HASEGAWA FLAVOURS AND FRAGRANCES INDONESIA was newly included in the scope of consolidation because its importance to the Group had increased. The subsidiary is reported in the Asia segment. In addition, during the consolidated first-quarter accounting period, Taiwan’s 台灣長谷川香料股份有限公司, an unconsolidated subsidiary not accounted for under the equity method, became a subsidiary of the Company, as did Malaysia’s T HASEGAWA FLAVOURS AND FRAGRANCES (MALAYSIA) SDN. BHD. during the consolidated second-quarter accounting period. Both subsidiaries are unconsolidated and not accounted for under the equity method.」

「Beginning with the consolidated second-quarter accounting period, PT. HASEGAWA FLAVOURS AND FRAGRANCES INDONESIA was newly included in the scope of consolidation because its importance to the Group had increased. The subsidiary is reported in the Asia segment. In addition, during the cumulative first-quarter consolidated period, Taiwan’s 台灣長谷川香料股份有限公司, an unconsolidated subsidiary not accounted for under the equity method, became a subsidiary of the Company, as did Malaysia’s T HASEGAWA FLAVOURS AND FRAGRANCES (MALAYSIA) SDN. BHD. during the consolidated second-quarter accounting period. Both subsidiaries are unconsolidated and not accounted for under the equity method.」

「During the cumulative first-quarter consolidated period, we established 台灣長谷川香料股份有限公司 in Taiwan. It is an unconsolidated subsidiary not accounted for under the equity method.」

「While working to expand our share of the domestic market, which is maturing as a result of the declining birthrate and aging population, further strengthening our global expansion is essential to pursuing future growth. In China, across Asia—particularly Southeast Asia—and in the U.S., we will accurately assess market growth potential and changes in consumer preferences, formulate and implement business strategies suited to each region, and take the necessary measures, including investments to strengthen the foundation for future growth and business alliances in Japan and overseas, to expand performance in overseas markets.」