(Reference Translation)
Aug 4, 2017OSAKA SODA CO., LTD.
CONSOLIDATED FINANCIAL RESULTS
For the quarterly period ended June 30, 2017
(Prepared under Japan GAAP, unaudited)

Company name:OSAKA SODA CO., LTD.

Stock Exchange Listing:

Securities code:4046

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

Tokyo

Representative:

Kenshi Terada, Representative Director, Chief Operating Officer

For inquiry:

Takuya Kajino, General Manager, Administration Division(Telephone: +81-6-6110-1560)

Scheduled date of filing of quarterly securities report:

Aug 7, 2017

Scheduled date of commencement of dividend payment:－Supplementary materials prepared for the financial results:

None

Quarterly financial results briefings:

None

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

(1)Results of Operations
Three Months Ended
June 30, 2017

June 30, 2016

Change *Change *Net sales

Millions of yen

23,634

4.2%

22,686(8.7)%

Operating income

Millions of yen

1,528(4.9)%

1,606

25.4%

Ordinary income

Millions of yen

1,814

92.0%

945(40.8)%

Net income

Millions of yen

1,226

139.0%

513(49.6)%

Comprehensive income

Millions of yen

2,144- %(193)-%

Net income per share

Yen

11.64-4.87-

Diluted net income per share

Yen

9.65

-

4.04

-

Note: Percent changes for three months are year-on-year comparisons.
(2)Financial Condition
June 30, 2017

March 31, 2017

Total assets

Millions of yen

102,512

101,503

Net assets

Millions of yen

54,23852,725Equity *Millions of yen

54,23852,725

%

52.9

51.9

Equity ratio

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

12. Dividends
Year ending Mar. 31, 2018

(Forecast)Year ending Mar. 31, 2018Year ended Mar. 31, 2017－－

End of first quarterEnd of second quarter

5.50

5.00

End of third quarter－－End of fourth quarter

27.50

6.00

－

11.00

Full year＊ The share consolidation proposed by OSAKA SODA CO., LTD. (the “Company”) was approved byshareholders at the 162nd Ordinary Meeting of Shareholders held on June 29, 2017. The Company’s
consolidation of its common shares will be completed effective October 1st, 2017 on the basis of one (1) new
post-consolidation common share for every five (5) pre-consolidation common shares (the “Ratio”). As aresult, the forecast of dividend per share for the year ending March 31, 2018 will be ¥27.50 per share on apost-consolidation basis from ¥5.50 per share on a pre-consolidation basis. Calculating annual dividend forthe same fiscal year ending March 31, 2018 is not possible in accordance with the Ratio. The annual dividendfor the same fiscal ending will be ¥11.0 per share on a pre-consolidation basis.
3. Earnings Forecast for the fiscal year ending March 31, 2018
First half

Full-year
Change*Change*Net sales

Millions of yen

47,0002.4%

100,000

6.9%

Operating income

Millions of yen

3,300

1.6%

7,000

6.3%

Ordinary income

Millions of yen

3,300

26.9%

7,000

7.1%

Net income

Millions of yen

2,200

24.7%

4,600

6.5%

Yen

20.88

-218.32-Earnings per share

Note: Percent changes for three months are year-on-year comparisons.
＊ The share consolidation proposed by OSAKA SODA CO., LTD. (the “Company”) was approved byshareholders at the 162nd Ordinary Meeting of Shareholders held on June 29, 2017. The Company’s
consolidation of its common shares will be completed effective October 1st, 2017 on the basis of one (1) newpost-consolidation common share for every five (5) pre-consolidation common shares. As a result, theforecast of earnings per share for the fiscal year ending March 31, 2018 will be ¥218.32 per share on a postconsolidation basis from ¥43.37 per share on a pre-consolidation basis.
* Notes(1)

Changes in significant subsidiaries during the current quarterly period(Changes in specified subsidiaries resulting in the change in scope of consolidation):

(2)

(3)

None

Application of accounting methods used specifically for the preparation of quarterly
consolidated financial statements:

None

Changes in accounting policies, accounting estimates and restatements of revisions

None1) Changes in accounting policies due to revisions of accounting standards, etc.:

None2) Changes in accounting policies other than 1):

None3) Changes in accounting estimates:

None4) Restatement of revisions:

None2

(4)

Number of outstanding shares (common stock)1) Number of shares outstanding at the end of the period (including treasury shares)
As of June 30, 2017:

111,778,205

shares

As of March 31, 2017:

111,773,837

shares

As of June 30, 2017:

6,430,577

sharesAs of March 31, 2017:

6,428,225

sharesThree months ended June 30, 2017

105,345,910

sharesThree months ended June 30, 2016

105,351,694

shares2) Number of treasury shares at the end of period

3) Average number of shares outstanding in each period* Status of quarterly review procedure:This quarterly financial results are not subject to the quarterly review procedure in accordance with the
Financial Instruments and Exchange Act. The quarterly review procedure of consolidated financial statements
has not been completed at the time of disclosure.

*Appropriate use of financial forecasts, other special 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 containknown 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.

34. Qualitative Information(1)Results of Operations
During the three months ended June 30, 2017, Japan’s economy has continued its moderate recovery trend,with improvements in the employment situation and corporate profits, though the outlook remains dim on
slowing down of emerging economies including China and the extent of political and economic uncertainty.
Under the circumstances, Osaka Soda Group has taken the following things.
Basic Chemical Products
Manufacturing systems have been developed with a focus on efficiency to enhance cost competitiveness andsales price adjustments have been implemented in response to the fluctuations of raw material and fuel price.
Functional Chemical Products
Increasing overseas sales activity has been performed to expand global sales of our main products such as
Epichlorohydrin, Diallyl Phthalate Resin, and Allyl Ethers. The early stages of new product and businesslaunches, such as Acrylic Rubber that entered into market in April, have taken place. With regard to Healthcarerelated businesses, it is positioned as a third pillar of profit. In Active Pharmaceutical Ingredients and theirIntermediates, the purchase order of contract manufacturing, especially in specialty instruments, has beenachieved good progress. In Separation Media in Pharmaceutical Industry (Silica Gel for Liquid
Chromatography), the development of new customer has been implemented in India as well as East Europeand China.
Housing Facilities and Others
A process of setting and managing business portfolio priorities has been implemented for strengthening theprofitability.
The following is a summary of reporting segments.
Basic Chemical Products
In Chlor-Alkali, the unit price of sales increased due to sales price adjustments of Caustic Soda.
In Epichlorhydrin, net sales increased due to continued steady domestic sales as well as export sales.
As a result, net sales in Basic Chemical Products were ¥10,018 million, an increase of 1.8% compared to thesame period of fiscal 2016.
Functional Chemical Products
In Separation Media in Pharmaceutical Industry (Silica Gel for Liquid Chromatography), net sales
decreased due to inventory adjustments by major European customers, despite sales growth for bio drugs
purification in China as well as continued steady sales applied for analysis and Active Pharmaceutical
Ingredients in domestic market.
In Active Pharmaceutical Ingredients and their Intermediates, net sales increased due to continued steadysales in new Antiviral Drugs, Drugs to treat insomnia, and materials for Medicated Cosmetics.
In Diallyl Phthalate Resin, net sales increased due to continued steady export sales to Europe in energy
saving UV Inks.
In Allyl Ethers, net sales increased due mainly to sales growth for silane coupling agent.
In Epichlorhydrin Rubber, net sales increased due to continued steady sales to Europe in addition todomestic recovery. The sale of acrylic rubber started in earnest as well.
As a result, net sales in Functional Chemical Products were ¥9,683 million, an increase of 10.9% comparedto the same period of fiscal 2016.
Housing Facilities and Others
Net sales were ¥3,932 million, a decrease of 4.4% compared to the same period of fiscal 2016.

4

As a result, net sales were ¥23,634 million, an increase of 4.2% compared to the same period of fiscal 2016.
Operating income was ¥1,528 million, a decrease of 4.9% compared to the same period of fiscal 2016.
Ordinary income was ¥1,814 million, an increase of 92.0% compared to the same period of fiscal 2016. Net
income attributable to owners of parent was ¥1,226 million, an increase of 139.0% compared to the same
period of fiscal 2016.
(2) Financial Condition
AssetsCurrent assets were ¥58,030 million, a decrease of 1.2% since March 31, 2017. The decrease was due
primarily to a decrease of ¥288 million in cash and deposits.
Noncurrent assets were ¥44,481 million, an increase of 4.0% since March 31, 2017. The increase was due
primarily to an increase of ¥1,313 million in investment securities.
As a result, Total assets were ¥102,512 million, an increase of 1.0% since March 31, 2017.
Liabilities
Current liabilities were ¥30,970 million, a decrease of 1.3% since March 31, 2017. The decrease was due
primarily to a decrease of ¥ ¥965 million in income taxes payable.
Noncurrent liabilities were ¥17,303 million, a decrease of 0.5% since March 31, 2017. The decrease wasdue primarily to a decrease of ¥400 million in long term loans payable.
As a result, Total liabilities were ¥48,273 million, a decrease of 1.0% since March 31, 2017.
Net assets
Net assets were ¥54,238 million, an increase of 2.9% since March 31, 2017.
(3) Earnings Forecasts
There are no revisions to the earnings forecast from the previous forecast announced in the “Consolidated
financial results for the year ended March 31, 2016” dated on May 9, 2017.

55. Consolidated Financial Statements

CONSOLIDATED 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
Property, plant, and equipment
Property, plant, and equipment - Net
Other - Net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other, net
Less: Allowance for doubtful accounts
Total investment and other assets
Total noncurrent assets
Total assets

6

March 31, 2017

June 30, 2017

11,03325,397
2,497
9,499
5,743
1,411
1,667
1,491
(3)
58,73910,74524,234
3,756
9,499
5,530
1,604
1,721
940
(3)
58,03011,33910,216
21,555

10,94011,00521,945

769
437
1,207

752
500
1,252

18,927
1,641(568)
20,001
42,764
101,503

20,2401,608(566)
21,28344,481
102,512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
Other current liabilities
Total current liabilities
Noncurrent liabilities
Bonds with subscription rights to sharesLong term loans payable
Provision for directors retirement benefits
Net defined benefit liability
Other noncurrent liabilities
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equityAccumulated 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

7

March 31, 2017

June 30, 201713,339
8,880
2,160
1,311
712
4,987
31,39013,815
8,880
1,960
346
382
5,586
30,970

9,999
800
567
2,927
3,093
17,387
48,778

9,997
400
557
2,911
3,437
17,30348,273

10,882
9,399
27,694(1,670)46,576

10,8839,400
28,558(1,671)47,1716,481(13)
24(342)
6,149
52,725
101,503

7,388(6)
16(331)
7,067
54,238102,512CONSOLIDATED STATEMENTS OF INCOME(Millions of yen)Three Months Ended
June 30, 2016
June 30, 2017
22,686
23,634
18,191
19,2974,495
4,337

Net sales
Cost of sales
Gross profit

2,888
1,606

2,808
1,528

7178
－
32
219

6
197
116
11
331

18
848
13
880
945

39
6
45
1,814－－

106
106

161
161
784

163
163
1,757

Net income

91
179
271
513

266
264
531
1,226

Net income attributable to non-controlling interests
Net income attributable to owners of parent－513－
1.226

Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gain
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Total extraordinary loss
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes

8

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
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

9

Three Months Ended
June 30, 2016
June 30, 2017
513
1,226(704)2(19)
14(706)
(193)

907
7(7)
11918
2,144(193)－

2,144－

6. Notes to the Consolidated Financial Statements(1) Notes regarding the going concern assumption:

None

(2)

NoneNotes on significant changes in shareholders’ equity:(3) Segment information
Three months ended June 30, 2016

(Millions of yen)

Basic

Functional

Housing

Consolidated

ChemicalChemicalFacilities

Products

Productsand Others

Total

Adjustments*1

operatingincome *2

Net sales
External sales

9,845

8,728

4,112

22,686－

22,686

3

0576

579

(579)

－

9,849

8,728

4,688

23,265(579)

22,686

265

1,562

22

1,849

(242)

1,606

Intersegment sales
or reclassifications
Total
Segment income

Notes 1:

Adjustments of segment income of ¥(242) million are corporate expenses not allocated toreportable segments. Corporate expenses are mainly expenses not attributable to a reporting
segment and related to fundamental research and development as well as administrative
departments.

Notes 2:

Segment income has been adjusted for the operating income appearing in the quarterly
consolidated statements of income.

Three months ended June 30, 2017

(Millions of yen)

Basic

Functional

Housing

Consolidated

ChemicalChemicalFacilities

ProductsProductsand Others

TotalAdjustments *1

operatingincome *2

Net sales
External sales
Intersegment sales
or reclassifications
TotalSegment incomeNotes 1:

10,018

9,683

3,932

23,634－

23,634

1

1202

205

(205)

－

10,019

9,684

4,135

23,839(205)

23,634

372

1,383

3

1,759(230)1,528

Adjustments of segment income of ¥(230) million are corporate expenses not allocated toreportable segments. Corporate expenses are mainly expenses not attributable to a reporting
segment and related to fundamental research and development as well as administrativedepartments.

Notes 2:Segment income has been adjusted for the operating income appearing in the quarterly
consolidated statements of income.

10