(Reference Translation)
May 11, 2020

OSAKA SODA CO., LTD.
CONSOLIDATED FINANCIAL RESULTS
For the Fiscal Year Ended March 31, 2020
(Prepared under Japan GAAP, unaudited)

Company name:OSAKA SODA CO.,LTD

Stock Exchange Listing:Tokyo

Securities code:

4046

URL: http://www.osaka-soda.co.jp

Representative:

Kenshi Terada, Representative Director, President and Chief Executive Officer

For inquiry:

Yoshihiro Ueda, Lead Executive Officer, General Manager, Administration Division(Telephone: +81-6-6110-1560)

Scheduled date of general shareholders meeting:June 26, 2020

Scheduled date of commencement of dividend payment:

June 10, 2020

Scheduled date of filing of securities report:

June 29, 2020

Supplementary materials prepared for the financial results:

Yes

Annual financial results briefings:

Yes

1. Consolidated Financial Results(Amounts are rounded down to the nearest million yen)

(1) Results of Operations
Year ended
March 31, 2020

March 31, 2019

Change *Change *Net sales

Millions of yen

105,477(2.2)%

107,874

6.6%

Operating income

Millions of yen

9,698

2.2%

9,488

29.7%

Ordinary income

Millions of yen

10,321

2.7%

10,05334.3%

Net income attributable to owners of parent

Millions of yen

6,506

-4.2%

6,793

42.2%

Comprehensive income

Millions of yen

4,714

11.1%

4,245

(36.1)%Net income per shareYen

276.14-297.10-

Diluted net income per shareYen

244.16-254.24-Return on equity

%

9.7

-

10.8

-

Return on total assets

%

9.2

-

8.8

-

Operating income ratio

%

9.2

-

8.8

-

Notes: Percent changes are year-on-year comparisons(2)Financial Condition
As of March 31, 2020

As of March 31, 2019

Total assets

Millions of yen

110,851

112,661

Net assets

Millions of yen

69,12164,548Equity *Millions of yen

69,12164,548

%

62.4

Yen

2,912.98

57.3
2,795.62

Equity ratio
Net assets per share
Note:

(Yen)

Equity = “Total net assets” minus “Subscription rights to shares”

1

(3)Cash Flows

Year ended
March 31, 2020

March 31, 2019

Cash flows from operating activities

Millions of yen

10,336

9,854

Cash flows from investing activities

Millions of yen(4,092)(4,542)

Cash flows from financing activities

Millions of yen(1,677)(5,003)

Cash and cash equivalents at end of year

Millions of yen

28,89924,376

2. Dividends
Year ending

Year ended

Year ended

March 31, 2021

March 31, 2020

March 31, 2019

(Forecast)End of first quarter

Yen

-

-

End of second quarter

Yen

32.50

32.50

End of third quarter

Yen

-

-

End of fourth quarter

Yen

32.50

32.50

35.00

Full year

Yen

65.00

65.00

65.00

-

1,542

1,499

30.00

Payment of dividends

Millions of yen

Dividend payout ratio

%

27.1

23.5

21.9

Ratio of dividend to net assets

%

-

2.3

2.4

Notes:(1)

Dividend forecast has been revised from the forecast most recently announced.

3. Earnings Forecast for the fiscal year ending March 31, 2021
End of second quarter

Full-year

Change*Change*Net sales

Millions of yen

46,000(13.3)%

96,000(9.0)%

Operating income

Millions of yen

3,300(33.4)%

8,000(17.5)%

Ordinary income

Millions of yen

3,500(32.6)%

8,400(18.6)%Net income

Millions of yen

2,400(24.8)%

5,700(12.4)%

Yen

101.14-240.22-

Earnings per share

Note: Percent changes are year-on-year comparisons.

* Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries resulting in thechange in scope of consolidation):

None(2) Changes in accounting policies, accounting estimates and restatements of revisions
1) Changes in accounting policies due to revisions of accounting standards, etc.:
2) Changes in accounting policies other than 1):
3) Changes in accounting estimates:
4) Restatement of revisions:

None

None

None

2

None

(3) Number of outstanding shares (common stock)1) Number of shares outstanding at the end of the period (including treasury shares)
As of March 31, 2020:

26,731,415

Shares

As of March 31, 2019:

26,090,580

Shares

As of March 31, 2020:

3,002,722

Shares

As of March 31, 2019:

3,001,554

Shares2) Number of treasury shares at the end of period

3) Average number of shares outstanding in each period
Year ended March 31, 2020:

23,563,486

SharesYear ended March 31, 2019:22,866,123

Shares* Audit procedures
The financial results are not subject to the audit procedures performed by certified public accountants
or an audit firm.

* Earnings forecasts and other notes
This material contains forward-looking statements such as earnings forecast about OSAKA SODA CO.,LTD. and its group companies (“Osaka Soda Group”). These forward-looking statements are based on
the current assumptions and beliefs of Osaka Soda Group in light of the information currently available
to it, and contain known and unknown risks, uncertainties and other factors. Osaka Soda Group
therefore wishes to caution readers that actual results could be materially different from any future
results.

DISCLAIMER:

This is an English translation of the original Japanese document and is prepared for reference. Should there
be any inconsistency between the translation and the Japanese original, the latter shall prevail. Thistranslation is subject to change without notice. Osaka Soda Group shall individually or jointly accept no
responsibility or liability for damage or loss caused by any error, inaccuracy, misunderstanding, or changes
regard to this translation.

3

4. Results of Operations and Financial Condition(1) Results of Operations
During the fiscal year ended March 31, 2020, the Japanese economy continued to recover moderately against
the background of improved employment and income conditions. However, the outlook remains uncertain due
to the prolonged trade friction between the U.S. and China, the slowdown in the Chinese economy, and the
pandemic of a new type of coronavirus since January.
Under the circumstances, Osaka Soda Group has entered the second year of our medium-term management
plan, “BRIGHT-2020,” and we have continued to implement concrete measures based on the three basic
policies of “Creating new growth engines”, “Establishing a profitable global business”, and “Completingbusiness structural reforms”.
As a result, net sales were ¥105,477 million, a decrease of 2.2% compared to the same fiscal period of 2018.
Operating income was ¥9,698 million, an increase of 2.2% compared to the same period of fiscal 2018.
Ordinary income was ¥10,321 million, an increase of 2.7% compared to the same period of fiscal 2018. Net
income attributable to owners of the parent was ¥6,506 million, a decrease of 4.2% compared to the same
period of fiscal 2018, due to the loss on valuation of investment securities
Basic Chemical Products
In Chlor-Alkali, net sales declined in the first half of the fiscal year due to a decline in demand forsemiconductors and electronic materials, as well as for pulp and paper due to the impact of the economic
slowdown in the second half of the fiscal year.
In Epichlorohydrin, net sales increased due to solid domestic sales and to the impact of stricter environmental
and safety regulations in China.
As a result, net sales were ¥48,263 million, a decrease of 1.4% compared to the same period of fiscal 2018.
Functional Chemical Products
In Allyl Ethers, net sales increased due to increased overseas sales volume of silane coupling products forelectronic materials and adhesives and paints.
In Diallyl Phthalate Resin, net sales were unchanged from the previous year, partly due to production
adjustments by UV ink customers.
In Synthetic Rubber, Epichlorohydrin Rubber was affected by a decline in automobile production worldwide,
however, we focused on developing new applications and new customers, and expanded the use of Acrylic
Rubber in Japan and overseas.
The demand for Separation Media in Pharmaceutical Industry (Silica Gel for Liquid Chromatography)
expanded for use in diabetes treatment drugs in Europe and the United States.
In Column and Analysis Systems for Liquid Chromatography, sales of columns to South Korea and China werefavorable.
In Active Pharmaceutical Ingredients (API) and their Intermediates business, sales of intermediates for antiinfective drugs, anti-tuberculosis drugs, and biopharmaceuticals increased in Japan, and sales ofintermediates for diabetes-related drugs and vasodilators expanded overseas. In addition, the import and salesof generic API increased.
The sales of color resists and other liquid crystal-related products decreased due to a decrease in sales volume
to LCD panels in China. Glass fiber sales declined due to a decrease in domestic sales volume for electronicmaterials.
As a result, net sales were ¥41,639 million, a decrease of 3.2% compared to the same period of fiscal 2018.

4

Housing Facilities and Others
The sales of life-related products were firm, but the sales of Housing Facilities and Others were ¥15,574 million,a decrease of 2.1% compared to the same period of fiscal 2018 due to a decline in sales of construction
materials and other products.
(2) Financial Condition
AssetsCurrent assets were ¥69,871 million, an increase of 2.4% since March 31, 2019. The increase was due
primarily to an increase of ¥3,223 million in cash and deposits, an increase of ¥1,799 million in short term
investment securities, and a decrease of ¥3,627 million in notes and accounts receivable-trade.
Noncurrent assets were ¥40,980 million, a decrease of 7.8% since March 31, 2019. The decrease was due
primarily to a decrease of ¥2,839 million in investment securities, a decrease of ¥311 million in intangible
assets, and a decrease of ¥108 million in property, plant and equipment.
As a result, Total assets were ¥110,851 million, a decrease of 1.6% since March 31, 2019.
Liabilities
Current liabilities were ¥26,660 million, a decrease of 17.2% since March 31, 2019. The decrease was due
primarily to a decrease of ¥2,427 million in notes and accounts payable-trade, a decrease of ¥1,464 million incurrent portion of bonds with subscription rights to shares, and a decrease of ¥1,001 million in income taxes
payable.
Noncurrent liabilities were ¥15,069 million, a decrease of 5.3% since March 31, 2019. The decrease wasdue primarily to a decrease of ¥658 million in deferred tax liabilities and a decrease of ¥369 million in provision
for directors retirement benefits.
As a result, Total liabilities were ¥41,730 million, a decrease of 13.3% since March 31, 2019.
Net assets
Net assets were ¥69,121 million, an increase of 7.1% since March 31, 2019.
(3) Cash flow
Cash and cash equivalents at the end of fiscal year were ¥28,899 million, an increase of ¥4,523 million
compared to the previous fiscal period.
Cash flows from operating activities
Net cash provided by operating activities amounted to ¥10,336 million, due primarily to ¥9,450 million in income
before income taxes and ¥3,626 million in depreciation.
Cash flows from investing activities
Net cash used in investing activities amounted to ¥4,092 million, due primarily to cash outflows of ¥3,472
million in purchase of property, plant, and equipment.
Cash flows from financing activities
Net cash provided by financing activities amounted to ¥1,677 million, due primarily to cash outflows of ¥1,579
million in dividends paid by parent company.
(4) Outlook
The economic outlook for the future is expected to remain extremely severe due to concerns over the longterm impact of the expansion of new type of coronavirus on economic activity.
Against this backdrop, in the final year of our sixth medium-term management plan, “BRIGHT-2020”, we will
step up our efforts to achieve the goals of our medium-term management plan and promote our strategy to
become a company that creates new value through specialty chemicals, which is our group vision.

5

Creating new growth engines
We will accelerate the development of new products using advanced technologies and knowledge that wehave accumulated over many years in our core businesses, from electrolysis to AC & EP chains. We will also
continue to promote customer evaluations of EV and battery-related materials and electronic materials andaccelerate the launch of these products.
We are accelerating the development of the environmentally friendly, non-phthalate allyl resin RADPARTM for
UV ink applications in food packages.
We will continue to focus on developing new applications and cultivating new customers for Acrylic Rubber,which has been used extensively, and further increase sales volume, while developing new grades of Acrylic
Rubber with improved heat resistance.
In downstream operations, we will focus on supplying rubber compounds using Synthetic Rubber and on thebusiness of columns and equipment for liquid chromatography through Group companies.
In Active Pharmaceutical Ingredients and their Intermediates, we will expand sales of intermediates fordiabetes-related drugs and anti-tuberculosis drugs by expanding production facilities and accelerate
development in new business fields such as high pharmacologically active pharmaceuticals.
Establishing a profitable global business
By accelerating our global strategy for Global Niche Top products such as functional chemicals andpharmaceutical related products, which have a high overseas share, and by further improving our services for
local customers and promoting growth strategies for each product. In addition, we will aggressively expand
our specialty chemicals business and form business alliances in North America.
Completing business structural reforms
In the Kyushu region, we will integrate the production facilities of our Kokura Plant and other companies in theindustry to strengthen cost competitiveness by streamlining production and further expand our business. We
will promote operational reforms, such as strengthening the management of affiliated companies and overseas
subsidiaries, building an agile organization, and improving business process and system efficiency. At thesame time, we will launch a new cost reduction project and focus on cost reductions across the entire company.
The earnings forecast for fiscal 2020 will be ¥96,000 million in net sales, ¥8,000 million in operating income,¥8,400 million in ordinary income, and ¥5,700 million in net income attributable to shareholders of the parent.

The earnings forecast is based on assumption that the impact of new coronavirus infectious diseases willcontinue throughout the fiscal year, particularly in the first half of the fiscal year, and may fluctuate
depending on the situation. We will continue careful assessment of the impact on our businessperformance and promptly notify you of any matters that should be disclosed in the future.
5. Accounting Standards
Osaka Soda Group prepares the consolidated financial statements in accordance with Japanese generally
accepted accounting principles, taking into accounts the comparability between periods and companies. In
adopting International Financial Reporting Standards, Osaka Soda Group intends to take appropriate
measures, examining internal and external situation.

6

6.

CONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATED BALANCE SHEETS(Millions of yen)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Electronically recorded monetary claims
Short term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Less: Allowance for doubtful accounts
Total current assets
Noncurrent assets
Buildings and structures
Accumulated depreciation
Buildings and structures - Net
Machinery, equipment, and vehicles
Accumulated depreciation
Machinery, equipment, and vehicles - Net
Land
Lease assets-PPE
Accumulated depreciation
Lease assets, net-PPE
Construction in progress
Other
Accumulated depreciation
Other - Net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other, net
Less: Allowance for doubtful accounts
Total investment and other assets
7

March 31, 2019

March 31, 2020

11,87629,2683,508
12,499
7,050
1,643
1,827
685
(140)
68,21915,09925,641
3,096
14,299
6,901
1,368
2,268
1,296
(100)
69,871

16,933(9,968)6,964
58,573(48,131)
10,442
2,305
1,026
(149)
877
877
4,012
(3,517)495
21,962

17,097(10,364)
6,732
60,448(50,338)
10,110
2,305
1,026
(221)
805
1,454
4,051
(3,605)445
21,853

864
305
169
1,338

681
231
115
1,027

19,642
34
442
1,027
(6)
21,141

16,803
29
368
903
(6)
18,099

Total noncurrent assets
Total assets

44,442
112,661

40,980110,851CONSOLIDATED BALANCE SHEETS (Continued)(Millions of yen)

Liabilities
Current liabilities
Notes and accounts payable- trade
Short term loans payable
Income taxes payable
Provision for bonuses
Current portion of bonds with subscription rights tosharesOther current liabilities
Total current liabilities
Noncurrent liabilities
Bonds with subscription rights to shares
Lease obligations
Deferred tax liabilities
Provision for directors retirement benefits
Net defined benefit liability
Asset retirement obligations
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Re-measurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total net assets and liabilities
8

March 31, 2019

March 31, 2020

15,586
7,767
2,280
889
1,464

13,159
7,767
1,278
911
-

4,211
32,197

3,543
26,66010,000
1,135
1,094
651
3,009
24
15,915
48,113

10,000
1,060
436
281
3,265
24
15,06941,73015,15013,66736,942(6,679)59,08015,87014,387
41,870(6,682)65,446

5,781
1
11
(327)
5,467
64,548112,661

4,177
8
7
(518)
3,674
69,121
110,851

CONSOLIDATED STATEMENTS OF INCOME(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries andassociates
Other
Total extraordinary loss
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to shareholders of the parent

9

Year Ended
March 31, 2019
March 31, 2020
107,874
105,477
84,78382,941
23,09022,536
13,601
12,837
9,488
9,698
25
404
42

9
437
33

198
1
131
804

144
197
821

109
130
239
10,053

94
75
28
198
10,321

137
1
139

0
178
179

382
-

298
503
243

4
387
9,805
3,133
(121)
3,012
6,793
6,793

3
1,049
9,450
2,741
202
2,944
6,506
6,506

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(Millions of yen)

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Re-measurements of defined benefit plans
Re-measurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Shareholders of the parent
Minority interests

10

Year ended
March 31, 2019
March 31, 2020
6,793
6,506
(2,549)
41
(29)
(10)
(0)
(2,548)4,245(1,603)
6
(4)
(190)
(0)
(1,792)
4,714

4,245
－

4,714
－

STATEMENTS OF CHANGES IN NET ASSETS(Millions of yen)

Shareholder’s Equity
Capital Stock
Balance at beginning of current period
Changes during the fiscal year
Issuance of new shares
Total changes of items during the period
Balance at end of current period
Capital Surplus
Balance at beginning of current period
Changes during the fiscal year
Issuance of new shares
Total changes of items during the period
Balance at end of current period
Retained earnings
Balance at beginning of current period
Changes during the fiscal year
Dividends from surplus
Net income attributable to shareholders of the parent
Total changes of items during the period
Balance at end of current period
Treasury Stock
Balance at beginning of current period
Changes during the fiscal year
Purchase of treasury shares
Total changes of items during the period
Balance at end of current period
Total shareholders' equity
Balance at beginning of current period
Changes during the fiscal year
Issuance of new shares
Dividends from surplus
Net income attributable to shareholders of the parent
Purchase of treasury shares
Total changes of items during the period
Balance at end of current period

11

March 31, 2019

March 31,2020

13,97015,1501,180
1,180
15,150720
720
15,87012,487

13,6671,180
1,180
13,667720
720
14,38731,51736,942(1,368)6,793
5,424
36,942(1,579)6,506
4,927
41,870(5,037)(6,679)(1,642)(1,642)(6,679)(3)(3)(6,682)

52,93859,0802,360(1,368)
6,793(1,642)
6,142
59,0801,441(1,579)
6,506
(3)
6,365
65,446

STATEMENTS OF CHANGES IN NET ASSETS (Continued)(Millions of yen)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at beginning of current period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at end of current period
Deferred gains or losses on hedges
Balance at beginning of current period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at end of current period
Foreign currency translation adjustment
Balance at beginning of current period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at end of current period
Re-measurements of defined benefit plans
Balance at beginning of current period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at end of current period
Total accumulated other comprehensive income
Balance at beginning of current period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at end of current period
Total net assets
Balance at beginning of current period
Issuance of new shares
Dividends from surplus
Net income attributable to shareholders of the parent
Purchase of treasury shares
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at end of current period

12

March 31, 2019

March 31,2020

8,332(2,550)(2,550)
5,781

5,781
(1,603)(1,603)
4,177

(40)
41
41
1

1
6
6
8

41
(29)
(29)
11

11
(4)
(4)
7

(317)
(10)
(10)
(327)

(327)
(190)
(190)
(518)

8,015
(2,548)(2,548)
5,467

5,467
(1,792)(1,792)
3,674

60,9532,360(1,368)
6,793(1,642)(2,548)3,594
64,54864,548
1,441(1,579)6,506(3)(1,792)
4,573
69,121STATEMENTS OF CASH FLOWS(Millions of yen)

Cash flows from operating activities
Income before Income Taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors' retirement
benefits
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss on retirement of non-current assets
Loss (gain) on sales of non-current assets
Subsidy income
Loss (gain) on sales of short-term and long-term
investment securities
Loss on valuation of shares of subsidiaries andassociates
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Loss (gain) on valuation of short-term and long-term
investment securities
Share of loss (profit) of entities accounted for using
equity method
Other, net
Sub totalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities

13

March 31, 2019

March 31, 2020

9,805
3,605
171
138
96
4
39

9,450
3,626
182
(39)
22
256
(369)

(430)
109
(113)
382
(134)
(0)

(446)
94
37
298
2
(144)
(178)

-

243

(1,295)
(824)
141
474
-

4,027
(13)
(2,423)
(342)
503

(42)

(33)

(278)
11,850448(110)(2,333)
9,854

(909)
13,847458(100)(3,868)
10,336

STATEMENTS OF CASH FLOWS (Continued)(Millions of yen)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Purchase of investment securities
Proceeds from sales of investment securities
Subsidies received
Other, net
Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Redemption of bonds
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

14

March 31, 2019

March 31, 2020

(3,627)
142
(77)
(618)
7
(369)
(4,542)(3,474)
17
(33)
(500)
(320)
301
144
(226)
(4,092)(1,113)(800)(1,660)(1,367)(62)(5,003)
74

(23)
(3)
(1,579)(71)(1,677)(43)382
23,99324,376

4,523
24,37628,899

7. Notes to the Consolidated Financial Statements(1) Notes regarding the going concern assumption: None
(2) Segment information
Year ended March 31, 2019

(Millions of yen)

Basic

Functional

Housing

Consolidated

ChemicalChemicalFacilities

Products

Products

and Others

Total

Adjustments*1

operatingincome *2

Net sales
External sales
Intersegment sales
or reclassifications
Total
Segment income
Segment assets

48,95543,005

15,912

107,874－

107,874

19

73

601

695

(695)

－

48,975
5,124
40,97543,0795,459
35,973

16,514169
6,500

108,569
10,753
83,269(695)(1,265)29,391

107,874
9,488
112,661

1,933

1,246

32

3,211

393

3,590

4

45

－

50

121

171

1,002

1,219

122

2,344

89

2,434

Other items
Depreciation
Amortization of
goodwill
Increase of current
and noncurrent
assets
Notes:(1)

Adjustments of segment income of ¥(1,256) million are corporate expenses not allocated to reportable segments.
Corporate expenses are mainly expenses not attributable to a reporting segment and related to fundamental
research and development as well as administrative departments.

(2)

Adjustments of segment assets of ¥29,391 million are corporate assets of ¥29,525 million, which are not allocatedto reportable segments. Corporate assets are mainly a parent company assets, those are surplus operating funds(cash and short term securities), long term investment capital (investment securities, etc.), and related toadministrative, research and development departments.

(3)

Adjustments of Increase of current and noncurrent assets of ¥89 million are for administrative department andresearch and development department investment.

(4)

Segment income is adjusted to operating income of consolidated statement of income.

15

Year ended March 31, 2020

(Millions of yen)

Basic

Functional

Housing

Consolidated

ChemicalChemicalFacilities

Products

Products

and Others

Total

Adjustments *1

operatingincome *2

Net sales
External sales
Intersegment sales
or reclassifications
Total
Segment income
Segment assets

48,263

41,63915,574105,477－

105,477

21

96

716

835

(835)

－

48,285
4,854
37,737

41,735
5,537
35,11916,291
475
5,479

106,312
10,86778,336(835)(1,168)32,514105,477
9,698
110,851

2,025

1,196

58

3,279

347

3,626

4

56

－

61

121

182

1,599

2,000

106

3,706

134

3,840

Other items
Depreciation
Amortization of
goodwill
Increase of current
and noncurrent
assets
Notes:(1)

Adjustments of segment income of ¥(1,168) million are corporate expenses not allocated to reportable segments.
Corporate expenses are mainly expenses not attributable to a reporting segment and related to fundamental
research and development as well as administrative departments.

(2)

Adjustments of segment assets of ¥32,514 million are corporate assets of ¥32,641 million, which are not allocatedto reportable segments. Corporate assets are mainly a parent company assets, those are surplus operating funds(cash and short term securities), long term investment capital (investment securities, etc.), and related toadministrative, research and development departments.

(3)

Adjustments of Increase of current and noncurrent assets of ¥134 million are for administrative department andresearch and development department investment.

(4)

Segment income is adjusted to operating income of consolidated statement of income.

16

(3) Per share information
Net assets per share

Yen

Earnings per share

Yen

Diluted earnings per share

Yen

March 31, 2019

March 31, 2020

2,795.62
297.10254.242,912.98
276.14244.16

Notes: The calculation of earnings per share and diluted earnings per share are as shown below.

March 31, 2019

March 31, 2020

Millions of yen

6,793

6,506

Millions of yen－－

Millions of yen

6,793

6,506

Thousands of shares

22,866

22,563Adjustment to net income

Millions of yen

Increase of common stockThousands of shares

－
3,854

－
3,086

Thousands of shares(3,854)(3,086)

Earnings per share
Net income
Amount not attributable to owners ofcommon stock
Net income related to owner ofcommon stock
Weighted average number ofcommon stock
Diluted earnings per share(Bonds with subscription rights toshares)
Details of shares not included in
calculation of fully diluted net income－

per share due to non-dilutive effect(4) Notes regarding subsequent events: Not applicable17－