(Reference Translation)
May 10, 2019OSAKA SODA CO., LTD.
CONSOLIDATED FINANCIAL RESULTS
For the Fiscal Year Ended March 31, 2019
(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, Executive Officer, General Manager, Administration Division(Telephone: +81-6-6110-1560)

Scheduled date of general shareholders meeting:June 27, 2019

Scheduled date of commencement of dividend payment:

June 10, 2019

Scheduled date of filing of securities report:

June 28, 2019

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, 2019

March 31, 2018

Change *Net sales

Millions of yen

107,874

6.6%

Operating income

Millions of yen

9,488

29.7%

Ordinary income

Millions of yen

10,05334.3%

Net income attributable to owners of parent

Millions of yen

6,793

42.2%

Comprehensive income

Millions of yen

4,245(36.1)%Net income per shareYen

297.10-

Diluted net income per shareYen

254.24-Return on equity

%

10.8

-

Return on total assets

%

8.8

-

Operating income ratio

%

8.8

-

101,231
7,318
7,485
4,778
6,645
223.24178.588.4
6.9
7.2

Change *
8.3%
11.1%
14.5%
10.6%
21.1%
-

Notes:(1)

Percent changes are year-on-year comparisons(2)

The Company implemented the Share Consolidation on the basis that every five (5) issued Existing Shares be
consolidated into one (1) Consolidated Shares on October 1, 2017. As a result, net income per share and diluted
net income per share are calculated assuming that the Share Consolidation was executed at the beginning of theprevious fiscal year.

1(2)Financial Condition
As of March 31, 2019
Total assets

Millions of yen

112,661

Net assets

Millions of yen

64,548Equity *Millions of yen

64,548

%

57.3

Yen

2,795.62

Equity ratio
Net assets per share(Yen)

As of March 31, 2018
115,020
60,953
60,95353.0
2,698.66

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

Note:

Year ended(3)Cash Flows

March 31, 2019
Cash flows from operating activities

Millions of yen

9,854

Cash flows from investing activities

Millions of yen(4,542)

Cash flows from financing activities

Millions of yen(5,003)

Cash and cash equivalents at end of year

Millions of yen

24,376

March 31, 2018
7,757
(7,398)
3,097
23,993

2. Dividends
Year ending

Year ended

Year ended

March 31, 2020

March 31, 2019

March 31, 2018

(Forecast)End of first quarter

Yen

-

-

End of second quarter

Yen

32.50

30.00

End of third quarter

Yen

-

-

End of fourth quarter

Yen

32.50

35.00

30.00*

Full year

Yen

65.00

65.00

-

-

1,499

1,270

5.50*

Payment of dividends

Millions of yen

Dividend payout ratio

%

22.1

21.9

25.8

Ratio of dividend to net assets

%

-

2.3

2.2

Notes:(1)

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

(2)

The Company implemented the Share Consolidation on the basis that every five (5) issued Existing Shares be
consolidated into one (1) Consolidated Shares on October 1, 2017. The amount of full year dividend for the fiscal
year ended March 31, 2018 is displayed as “－” because a proper computation is deemed to be impossible.
Considering common shares consolidation, the amount of full year dividend for the fiscal year ended March 31,2018 should be ¥57.50 and the amount of annual dividend for the fiscal year ended March 31, 2019 is $65.00, that
is, an increased dividend by ¥7.50.

3. Earnings Forecast for the fiscal year ending March 31, 2020
End of second quarter

Full-year

Change*Change*Net sales

Millions of yen

51,000(3.2)%

105,000(2.7)%

Operating income

Millions of yen

4,400

1.9%

9,600

1.2%

Ordinary income

Millions of yen

4,700(4.2)%

10,2001.5%

Net income

Millions of yen

3,100(7.6)%

6,800

0.1%

Yen

134.26-294.51-

Earnings per share

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

2* 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

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, 2019:

26,090,580

Shares

As of March 31, 2018:25,052,432

Shares

As of March 31, 2019:

3,001,554

Shares

As of March 31, 2018:

2,465,710

Shares2) Number of treasury shares at the end of period

3) Average number of shares outstanding in each period
Year ended March 31, 2019:22,866,123

SharesYear ended March 31, 2018:

21,405,910

SharesNote:

The Company implemented the Share Consolidation on the basis that every five (5) issued Existing
Shares be consolidated into one (1) Consolidated Shares on October 1, 2017. As a result, number ofshares outstanding at the end of the period, number of treasury shares at the end of period, andaverage number of shares outstanding in each period are calculated assuming that the Share
Consolidation was executed at the beginning of the previous fiscal year.

* Audit proceduresThis 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
with regard to this translation.

3

4. Results of Operations and Financial Condition(1) Results of Operations
During the fiscal year ended March 31, 2019, Japan’s economy has continued to recover moderately as atrend, against the background of improvement in the employment and income situation, although the outlook
for the global economy remains uncertain due to the elevation in trade tensions caused by U.S. trade policy
and China’s economic downturn from the second half of the year.
Under the circumstances, Osaka Soda Group has been shifting to profit oriented management in line with thethree basic policies “Creating new growth engines”, “Establishing a profitable global business”, and“Completing business structural reforms” set forth in the mid-term management plan “BRIGHT – 2020” thatcommenced in fiscal 2018.
Basic Chemical Products segment revised the sales price in response to price fluctuation of raw materials andfuels, and reduced cost through installation of the in-house developed, improved electrolyzer.
Functional Chemical Products segment focused on “Creating new growth engines”, by expanding market shareof major products, such as Synthetic Rubber, Synthetic Resin, and Allyl Ethers, with the aim of " Establishinga profitable global business", while expanding the new business field of chromatography column andinstrument, entering into the field of Highly Pharmacologically Active Agents, and launching “RADPAR™”
which is non phthalate type allyl resin following Acrylic Rubber launched last year. In addition, Osaka Soda
Group began new initiatives to improve productivity, as a part of business structure reforms, by utilizing ourcore technology and IoT & AI through collaboration between R&D department and production engineering
department.
As a result, net sales were ¥107,874 million, an increase of 6.6% compared to the same fiscal period of 2017.
Operating income was ¥9,488 million, an increase of 29.7% compared to the same period of fiscal 2017.
Ordinary income was ¥10,053 million, an increase of 34.3% compared to the same period of fiscal 2017. Net
income attributable to owners of the parent was ¥6,793 million, an increase of 42.2% compared to the same
period of fiscal 2017. Net sales and all three levels of profit posted record high.
Basic Chemical Products
In Chlor-Alkali, net sales increased due to continued steady domestic demand and price revision in caustic
soda.
In Epichlorohydrin, net sales increased due to continued steady domestic sales as well as price increase inoverseas market.
As a result, net sales were ¥48,955 million, an increase of 10.0% compared to the same period of fiscal 2017.
Functional Chemical Products
In Allyl Ethers, net sales increased due to growth in volume of new applications in Japan and silane coupling
agents in Europe and Americas.
In Diallyl Phthalate Resin, net sales increased due to continued steady sales of UV printing inks in Japan, Asia,and the United States.
Epichlorhydrin Rubber
In Synthetic Rubber and related businesses, net sales in Epichlorohydrin Rubber increased due to increase
with growing domestic demand for both hybrid vehicles and compliance with environmental regulation indeveloping countries. In addition, net sales in Acrylic Rubber increased due to increasing order receipt indomestic and overseas market.
Separation Media in Pharmaceutical Industry (Silica Gel for Liquid Chromatography) continued favorable sales,
driven by the sales to Europe and China in biopharmaceutical purification as well as domestic sales and thesales to China and Korea in chromatography column/analytical instrument.
Active Pharmaceutical Ingredients (API) and their Intermediates business remained robust, led by new contract

4

manufacturing from pharmaceutical companies, sales for pharmaceutical intermediates, and imported sales ingeneric API. In addition, the generic API related business started utilizing the equipment for Highly
pharmacologically active drug.
As a result, net sales were ¥43,005 million, an increase of 5.7% compared to the same period of fiscal 2017.
Housing Facilities and Others
Net sales were ¥15,912 million, a decrease of 0.8% compared to the same period of fiscal 2017.
(2) Financial Condition
AssetsCurrent assets were ¥68,219 million, an increase of 3.3% since March 31, 2018. The increase was due
primarily to an increase of ¥1,999 million in short term investment securities, an increase of ¥1,558 million innotes and accounts receivable-trade, and an increase of ¥894 million in merchandise and finished goods.
Noncurrent assets were ¥44,442 million, a decrease of 9.2% since March 31, 2018. The decrease was due
primarily to a decrease of ¥3,041 million in investment securities.
As a result, Total assets were ¥112,661 million, a decrease of 2.1% since March 31, 2018.
Liabilities
Current liabilities were ¥32,197 million, a decrease of 3.0% since March 31, 2018. The decrease was due
primarily to a decrease of ¥1,113 million in short term loans payable.
Noncurrent liabilities were ¥15,915 million, a decrease of 23.7% since March 31, 2018. The decrease wasdue primarily to a decrease of ¥3,824 million in bonds with subscription rights to shares.
As a result, Total liabilities were ¥48,113 million, a decrease of 11.0% since March 31, 2018.
Net assets
Net assets were ¥64,548 million, an increase of 5.9% since March 31, 2018.
(3) Cash flow
Cash and cash equivalents at the end of fiscal year were ¥24,376 million, an increase of ¥382 million
compared to the previous fiscal period.
Cash flows from operating activities
Net cash provided by operating activities amounted to ¥9,854 million, due primarily to ¥9,805 million in income
before income taxes and ¥3,605 million in depreciation.
Cash flows from investing activities
Net cash used in investing activities amounted to ¥4,542 million, due primarily to cash outflows of ¥3,627
million in purchase of property, plant, and equipment.
Cash flows from financing activities
Net cash provided by financing activities amounted to ¥5,003 million, due primarily to cash outflows of ¥1,660
in purchase of treasury shares, cash outflows of ¥1,367 million in dividends paid by parent company, and cash
outflows of ¥1,113 million in repayment of short term loans payable.
(4) Outlook
With regard to the economic outlook, Japan’s economy is expected to recover moderately against thebackground of improvement of employment and income situation. However, the global economy remains
uncertain due to downside risks such as the elevation in trade tensions caused by U.S. trade policy, China’s
economic downturn, withdrawal of the United Kingdom from the EU, and consumption tax hike in Japan.
Under the circumstance, Osaka Soda Group, in the second year with the 6th mid-term management plan
“BRIGHT-2020 (from FY2018 to FY2020)”, accelerates approach toward the achievement of Group vision, “Be
a company growing by business expansion of specialty chemicals” since last fiscal year.

5Creating new growth engines
Osaka Soda Group will enhance the development of new products that leverage the sophisticated technologies
and expertise we have cultivated over the years in our core businesses, from electrolysis to AC/EP chain. At
the same time, we will move ahead with the early launch of EV and battery-related materials and electronicmaterials, which have been highly evaluated by our customers. The non-phthalate type allyl resin “RADPAR™”
which was launched last fiscal year, will facilitate market penetration, and sales volume of Acrylic rubber, which
is being adopted, will especially in Japan and Asia. In addition, we intend to make full-scale efforts to supply
rubber compounds using synthetic rubber through affiliated companies as a downstream businessdevelopment, and to accelerate the expansion into new business fields, including the Highly Pharmacologicalactive drug and Chromatography column & equipment.
Establishing a profitable global business
Overseas Business Headquarters accelerates global strategies for high-share Functional Chemical Products
and pharmaceuticals, both of which are regarded as GNT (global niche top) products, while further enhancing
services for local customers and promoting growth strategies by product. In addition, Osaka Soda Groupaggressively works for establishment of overseas manufacturing base and business alliance for future growth.
Completing business structural reforms
Manufacturing department further enhances cost competitiveness by improving the productivity of
manufacturing plants by introducing “Internet of Things” and “Artificial Intelligence”, improving yield rate with
R&D core technologies, and increasing production capacity of main products in Functional Chemical Products.
Corporate department executes operational reforms such as strengthening administration of affiliated company,
creation of a flexible organizational structure, and operational efficiency mainly in business process and system
improvement.
The outlook for fiscal 2019 will be ¥105,000 million in net sales, ¥9,600 million in operating income, ¥10,200
million in ordinary income, and ¥6,800 million in net income attributable to shareholders of the parent.
5. Accounting Standards
Osaka Soda Group prepares the consolidated financial statements in accordance with Japanese generally
accepted accounting principles, taking into account 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

8.

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, 2018

March 31, 201913,49327,7103,845
10,499
6,155
1,608
1,938
811
(2)
66,06011,87629,2683,508
12,499
7,050
1,643
1,827
685
(140)
68,21916,361(9,541)
6,819
56,567(45,850)
10,716
2,306
1,026
(77)
948
2,317
3,978
(3,492)486
23,595

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

975
432
191
1,599

864
305
169
1,338

22,684
43
305
737
(6)
23,764

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

Total noncurrent assets
Total assets

48,959115,020

44,442
112,661

CONSOLIDATED BALANCE SHEETS (Continued)(Millions of yen)

Liabilities
Current liabilities
Notes and accounts payable- trade
Short term loans payable
Current portion of long 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, 2018

March 31, 201915,522
8,880
800
1,444
792
-

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

5,767
33,206

4,211
32,197

13,824
1,202
2,192
611
3,004
24
20,85954,066

10,000
1,135
1,094
651
3,009
24
15,915
48,113

13,97012,48731,517(5,037)52,93815,15013,66736,942(6,679)59,080

8,332
(40)
41
(317)
8,015
60,953
115,020

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

CONSOLIDATED STATEMENTS OF INCOME(Millions of yen)
Year Ended
March 31, 2018
March 31, 2019
101,231
107,874
81,41784,783
19,81423,09012,495
13,601
7,318
9,488

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gains
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
Impairment loss
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

15
369
115
500

25
404
198
175
804

125
91
117
333
7,485

109
130
239
10,053

106
106

137
1
139

568
97
666
6,924

382
4
387
9,805

2,035
110
2,146
4,778
4,778

3,133
(121)
3,012
6,793
6,793

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, 2018
March 31, 2019
4,778
6,793
1,851
(26)
16
25
1,866
6,645

(2,549)
41
(29)
(10)
(0)
(2,548)
4,245

6,645
－

4,245
－

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, 2018

March 31,2019

10,882

13,970

3,087
3,087
13,9701,180
1,180
15,1509,399

12,4873,087
3,087
12,4871,180
1,180
13,667

27,96431,517(1,224)
4,778
3,553
31,517(1,368)6,793
5,424
36,942(1,670)(5,037)(3,366)(3,366)(5,037)(1,642)(1,642)(6,679)46,57652,9386,175(1,224)
4,778(3,366)
6,362
52,9382,360(1,368)
6,793(1,642)
6,142
59,080STATEMENTS OF CHANGES IN NET ASSETS (Continued)(Millions of yen)March 31, 2018

March 31,2019

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

6,481
1,851
1,851
8,332

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

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

(13)
(26)
(26)
(40)

(40)
41
41
1

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

24
16
16
41

41
(29)
(29)
11

(342)
25
25
(317)

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

6,149
1,866
1,866
8,015

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

52,725
6,175(1,224)
4,778(3,366)
1,866
8,228
60,953

60,9532,360(1,368)
6,793(1,642)(2,548)3,594
64,548Re-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

STATEMENTS OF CASH FLOWS(Millions of yen)

Cash flows from operating activities
Income before Income Taxes
Depreciation
Impairment loss
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
Bond issuance costs
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
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, 2018

March 31, 2019

6,924
3,185
97
162
(26)
65
14
44

9,805
3,605
171
138
96
4
39

(385)
125
29
568
32
(3,522)
(272)
2,029
22
-

(430)
109
(113)
382
(1,295)
(824)
141
474
(42)

312
9,409
385
(119)
(1,917)
7,757

(413)
11,850448(110)(2,333)
9,854

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

Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Purchase of shares of subsidiaries and associates
Purchase of shares of subsidiaries resulting in change inscope of consolidation
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
Proceeds from issuance of bonds with subscription
rights to shares
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, 2018

March 31, 2019

(4,584)
(226)
(118)
(966)
(1,201)(3,627)
(77)
(618)
-

(301)
(7,398)(219)(4,542)(2,160)9,967(1,113)(800)-(3,366)(1,225)
(118)
3,097
5

(1,660)(1,367)(62)(5,003)74

3,460
20,532
23,993382
23,99324,376

9. Notes to the Consolidated Financial Statements(1) Notes regarding the going concern assumption: None
(2) Additional Information
Adoption of “Partial Amendments to Accounting Standard for Tax Effect Accounting”“Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No.28,
February 16, 2018) is adopted from the first quarter of this fiscal year. Accordingly, deferred tax
assets are presented under investments and other assets, and deferred tax liabilities are presented
under noncurrent liabilities.
(3)Segment information
Year ended March 31, 2018

(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

44,51340,68016,038101,231－101,231

11

30

1,046

1,088

(1,088)－44,524
2,221
42,81540,7106,017
35,62817,084
137
7,271

102,320
8,375
85,715(1,088)(1,056)29,304

101,2317,318
115,020

1,846

1,003

25

2,875

310

3,185

3

15

22

41

121

162

876

2,947

77

3,900

2,062

5,963

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

Adjustments of segment income of ¥(1,056) 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 ¥29,304 million are corporate assets of ¥29,453 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 ¥2,062 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, 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

1,918

1,246

32

3,196

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 ¥(1,265) 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.

16

(4) Per share information
Net assets per share

Yen

Earnings per share

Yen

Diluted earnings per share

Yen

March 31, 2018

March 31, 2019

2,698.66
223.24178.582,795.62
297.10254.24

Notes:(1)

The Company implemented the Share Consolidation on the basis that every five (5) issued Existing Shares be
consolidated into one (1) Consolidated Shares on October 1, 2017. As a result, net assets per share, net income
per share, and diluted net income per share are calculated assuming that the Share Consolidation was executedat the beginning of the previous fiscal year.

(2)

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

March 31, 2018

March 31, 2019

Millions of yen

4,778

6,793

Millions of yen－－

Millions of yen

4,778

6,793

Thousands of shares

21,40522,866

Adjustment to net income

Millions of yen

Increase of common stockThousands of shares

－
5,352

－
3,854

Thousands of shares(5,352)(3,854)

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(6) Notes regarding subsequent events: Not applicable17－