Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

May 12, 2022

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2022
(Under Japanese GAAP)
Company name:OSAKA SODA Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
4046
URL:
http://www.osaka-soda.co.jp
Representative:
Kenshi Terada, Representative Director, President and Chief Executive Officer
Inquiries:
Toru Imamura, General Manager, Administration Division
Telephone:+81-6-6110-1560
Scheduled date of annual general meeting of shareholders:June 29, 2022
Scheduled date to commence dividend payments:
June 13, 2022
Scheduled date to file annual securities report:
June 30, 2022
Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 to March 31,
2022(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Mar 31,2022

88,084－

12,401

48.7

13,435

52.0

9,442

56.1

Mar 31,2021

97,266

(7.8)

8,341

(14.0)

8,838(14.4)

6,050

(7.0)

Note: Comprehensive income

For the fiscal year ended Mar 31,2022:
For the fiscal year ended Mar 31,2021:

Basic earnings
per share
Fiscal year ended

Diluted earnings
per share¥8,208 million¥10,622 million

Return on equity(22.7) %125.3%

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales

%

%

Yen

Yen

%

Mar 31,2022

404.73363.53

11.7

10.8

14.1

Mar 31,2021

257.37230.23

8.3

7.7

8.6

Reference:

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended Mar 31,2022:¥48 million
For the fiscal year ended Mar 31,2021:¥(97)million
Notes: The Company has applied ASBJ Statement No. 29 “Accounting Standard for Revenue Recognition”, etc. from the beginningof the fiscal year. The figures for the fiscal year ended Mar 31, 2022 represent amounts after the application of the said accounting
standard, etc. and year-over-year increases/decreases (%) are not provided.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

Mar 31,2022

129,159

83,89664.9

3,594.69

Mar 31,2021

119,373

77,23264.7

3,310.56

Reference:

EquityAs of Mar 31,2022:
As of Mar 31,2021:¥83,872 million¥77,224 million

1

%

Yen

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Mar 31,2022

13,378(6,961)(1,646)37,016

Mar 31,2021

9,347(1,850)(4,464)31,936

2. Cash dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end
Fiscal year ended
Mar 31,2022
Fiscal year ended
Mar 31,2021

Fiscalyear-end

Total cash
dividends(Total)

Total

Yen

Yen

Yen

Yen

－

32.50

－

32.50

65.00

－

35.00

－

45.00

80.00

－

41.00

－

41.00

82.00

Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)

Yen Millions of yen

%

%

1,516

25.3

2.1

1,866

19.8

2.3

Fiscal year ending

Mar 31,2023(Forecast)

20.1

3. Consolidated Earnings Forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022 to March
31, 2023(Percentages indicate year-on-year changes.)
Net sales
Millions of yen

First half year
(cumulative)
Full year

Operating profit%

Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen

6,500 14.2

6,900

12.0

4,800

8.6

94,00013,00013,700

2.0

9,500

0.6

4.8

Yen

%

47,000 11.5
6.7

Basic earnings
per share
205.72407.16*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): Yes
Excluded: OKAYAMA KASEI Co., Ltd.
(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of Mar 31,2022

26,732,017 shares

As of Mar 31,2021

26,731,415 shares(ii) Number of treasury shares at the end of the period
As of Mar 31,2022

3,399,626 shares

As of Mar 31,2021

3,404,604 shares(iii) Average number of shares outstanding during the period
Fiscal year ended Mar 31,2022

23,329,992 sharesFiscal year ended Mar 31,2021

23,510,263 shares

2[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended Mar 31, 2022 (from Apr 1, 2021 to Mar 31,
2022)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended

Operating profit

Millions of yen%

Millions of yen

Ordinary profit%

Millions of yen

Profit%Millions of yen%

Mar 31,2022

63,881－

10,27746.2

11,216

51.6

8,790

85.5

Mar 31,2021

65,039

(8.6)

7,029

(17.1)

7,401(16.8)

4,739(16.6)

Basic earnings
per share
Fiscal year ended

Diluted earnings
per share
Yen

Yen

Mar 31,2022

376.79338.43

Mar 31,2021

201.59180.34(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

Mar 31,2022

110,864

70,454

63.5

3,019.59

Mar 31,2021

106,028

69,03365.1

2,959.39

Reference:

EquityAs of Mar 31,2022:
As of Mar 31,2021:%

Yen¥70,454 million¥69,033 million* Financial results reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Proper use of earnings forecasts, and other special matters
In this document, statements other than historical facts are forward-looking statements that reflect theCompany’s plans and expectations. These forward-looking statements involve risks, uncertainties and otherfactors that may cause our actual results and achievements to differ from those anticipated in these statements.
Please refer to “1. Overview of Operating Results, etc. (4) Future Outlook” on page 6 of the attached materials
for the assumptions used in business forecasts.

3

(Attached Documents)
INDEX
1.

Overview of Operating Results, etc.

5(1) Overview of Operating Results

5(2) Overview of Financial Positions

6(3) Overview of Cash Flows

6(4) Future Outlook

6

2.

Basic Approach to the Selection of Accounting Standards

7

3.

Consolidated Financial Statements

84.

(1) Consolidated Balance Sheets

8(2) Consolidated Statements of Income and Statements of Comprehensive Income

10(3) Consolidated Statements of Changes in Net Assets

12(4) Consolidated Statements of Cash Flows

14(5) Notes to Consolidated Financial Statements

15(Notes on Premise of Going Concern)

15(Changes in Accounting Policies)

15(Segment Information)

16(Per Share Information)

18

Change of Officers

184

1. Overview of Operating Results, etc.
(1) Overview of Operating Results
During the fiscal year ended March 31, 2022, although the Japanese economy continued to show signs ofrecovery toward normalization from the impact of COVID-19, the emergence of new highly transmissible
variants meant that the situation remained difficult with no outlook for the recession of the pandemic.
Although it is expected that the economy will continue to recover going forward, the outlook is extremely
uncertain owing to factors such as supply constraints, rising raw material and fuel prices, and the impact of
the situation in Ukraine.
Under these circumstances, the Osaka Soda Group launched its new medium-term management plan,“EMPOWER THE NEXT-22,” and implemented specific measures based on the four basic policies of"building a resilient business foundation," "promotion of market-in-type development," "efforts to achieve
the SDGs," and "reforming corporate culture and organizational culture."
In "building a resilient business foundation," we have positioned the Basic chemicals business, Functional
chemicals business, and Healthcare business as our three core businesses and are pursuing strategies to makethese businesses more resilient. During the fiscal year ended March 31, 2022, in the Basic chemicals
business, operations began at the Company’s Kitakyushu Plant, which was established by combining theelectrolysis facilities of the Fukuoka Plant of Mitsubishi Chemical Corporation and the Kokura Plant of theCompany. As such, the Company has been able to build a stable supply system, in line with initial plans. In
the Functional chemicals business, we were able to respond to growing global demand for Allyl Ethers byenhancing our supply system and improving productivity. We also increased capacity at our manufacturing
facilities in February of this year with the aim of capturing further demand. In the Healthcare Business,
performance was good, thanks in part to an increase in the adoption of new grades of pharmaceuticalpurification materials, as well as the acquisition of new contracts related to active pharmaceutical ingredients(APIs) and their intermediates. Efforts to reduce costs, particularly at production sites, are also steadily
generating results and contributing to profits. In "promotion of market-in-type development," we succeeded
in developing a semi-solid state battery using our unique polyether, in collaboration with Yamagata
University.
As a result of the above, net sales for the fiscal year ended March 31, 2022, decreased 9.4% year on year to¥88,084 million. The decrease in net sales owing to the application of the Accounting Standard for Revenue
Recognition was ¥23,741 million, meaning that in substantive terms, sales increased. In terms of income,
operating income increased 48.7% year-on-year to ¥12,401 million, ordinary income increased 52.0% to¥13,435 million, and net income attributable to owners of the parent increased 56.1% to ¥9,442 million,
meaning that the Company recorded its highest ever results at each level of profit.
An overview of conditions in each segment is as follows.
< Basic chemicals >In Chlor-Alkali, net sales increased, particularly in relation to Caustic Soda, as demand recovered from theeconomic downturn caused by the impact of the COVID-19 pandemic. In Epichlorohydrin, net sales
increased thanks to strong demand, particularly in relation to electronic materials, as well as price revisions
related to rising raw material and fuel prices. Net sales in the Basic chemicals business decreased 12.9% year
on year to ¥36,942 million, partly owing to the impact of the application of the Accounting Standard for
Revenue Recognition.
< Functional chemicals >In the synthetic rubber business, net sales of Epichlorohydrin Rubber increased as a result of increased
demand for automotive and OA applications. Net sales of Acrylic Rubber increased thanks to its adoption for
new applications in Japan and overseas, as well as increased sales, particularly to Asia. Net sales of DAP
resin increased thanks to an increase in demand for electronic material applications, as well as strong sales inJapan and overseas in line with a recovery in demand for UV ink applications. Net sales of Allyl Ethers
increased as sales for Silane coupling agent applications grew both in Japan and overseas.
Net sales of pharmaceutical purification materials increased as demand increased for applications in diabetes
treatments in Europe, the Americas, and Asia, etc. Net sales of APIs and their intermediates increased in linewith greater sales of anti-tuberculosis drug intermediates, anti-cancer drug substances and intermediates, andbloodstream improvement intermediates.
5

As a result of the above, net sales in the Functional chemicals business increased 12.6% year on year to¥45,879 million.
< Housing facilities and others >Sales of Housing Facilities were robust, but net sales in the Housing facilities and others business decreased
62.7% year on year to ¥5,261 million, partly owing to the impact of the application of the AccountingStandard for Revenue Recognition.
(2) Overview of Financial Positions
AssetsCurrent assets were ¥82,142 million, an increase of 11.2% since March 31, 2021. The increase was due
primarily to an increase of ¥5,999 million in short term investment securities.
Noncurrent assets were ¥47,016 million, an increase of 3.3% since March 31, 2021. The increase was due
primarily to an increase of ¥3,057 million in property, plant and equipment.
As a result, Total assets were ¥129,159 million, an increase of 8.2% since March 31, 2021.
Liabilities
Current liabilities were ¥39,850 million, an increase of 48.6 % since March 31, 2021. The increase wasdue primarily to an increase of ¥8,733 million in bonds with subscription rights to shares, an increase of¥1,498 in income taxes payable respectively.
Noncurrent liabilities were ¥5,412 million, a decrease of 64.7% since March 31, 2021. The decrease wasdue primarily to a decrease of ¥8,737 in bonds with subscription rights to shares.
As a result, Total liabilities were ¥45,263 million, an increase of 7.4% since March 31, 2021.
Net assets
Net assets were ¥83,896 million, an increase of 8.6% since March 31, 2021.
(3) Overview of Cash Flows
Cash and cash equivalents at the end of fiscal year were ¥37,016 million, an increase of ¥5,080 million
compared to the previous fiscal period.
Cash flows from operating activities
Net cash provided by operating activities amounted to ¥13,378 million, due primarily to ¥13,412 million inincome before income taxes, ¥3,731 million in depreciation, and ¥2,592 million in income taxes paid.
Cash flows from investing activities
Net cash used in investing activities amounted to ¥6,961 million, due primarily to cash outflows of ¥5,685
million in purchase of property, plant, and equipment.
Cash flows from financing activities
Net cash provided by financing activities amounted to ¥1,646 million, due primarily to cash outflows of¥1,574 million in dividends paid by parent company.
(4) Future Outlook
With regard to the future economic outlook, it is expected that the economy will continue to pick up, butdifficult circumstances are forecast to continue amid concerns surrounding the impact of factors such as theprolonging of the pandemic as a result of new variants and further rises in raw material and fuel prices.
Under these circumstances, as the Osaka Soda Group enters the final fiscal year of our seventh mediumterm management plan, “EMPOWER THE NEXT-22” (FY2021 to FY2022), we will steadily implement
the specific measures set forth in the medium-term management plan in each division, based on the fourbasic policies of "building a resilient business foundation," "promotion of market-in-type development,""efforts to achieve the SDGs," and "reforming corporate culture and organizational culture."
In "building a resilient business foundation," in the Basic chemicals business, we will focus on pricerevisions in response to rising raw material and fuel prices, replacement investment aimed at enhancing
production efficiency, and cost reductions. In this way, we will strengthen our business foundation into one
able to generate stable earnings. In the Functional chemicals business, we will take advantage of ourincreased production capacity for Allyl Ethers to capture demand, particularly for electronic materials
applications. At the same time, we will further promote the adoption of new Acrylic Rubber and Non6phthalate allyl resin products by new customers. In addition, in the Healthcare business, which we arepositioning as a future pillar of earnings, we will make capital investments and increase our production
capacity in the areas of both pharmaceutical purification materials and APIs and their intermediates, inorder to meet strong demand.
In "promotion of market-in-type development," we will ensure that business divisions take the lead inplanning new products that accurately capture customer needs and take steps to quickly bring products tomarket through prompt development by our research and development departments. In the area of“Environment and Energy,” we will establish product facilities for unique polyether aimed at the mass
production of semi-solid state batteries. In addition, we will also promote the development of ultra-highionic conductive polymers for all-solid batteries, which was selected as a Green Innovation Fund Project by
NEDO. In the area of “Mobility,” we will work to bring super heat resistant grades of Acrylic Rubber tomarket soon, while also focusing on the development of new materials to support the shift to electric andself-driving vehicles. In the area of “Information and Communications,” we will develop silver
nanoparticles and other materials that contribute to power semiconductors and work to improve customers’
assessments of our products. In the area of “Health and Healthcare,” we will strengthen ourbiopharmaceutical manufacturing and purification technologies in response to changing pharmaceuticalmodalities. We will also develop products that contribute to extending healthy life expectancy, such as
NMN-producing lactic acid bacteria.
In our “initiatives targeting the SDGs,” in addition to providing value to society through our businesses, wewill discuss practical solutions to climate change and global environmental conservation and will also
strengthen our efforts to address important issues such as greenhouse gas emissions reduction targets.
In "reforming corporate culture and organizational culture," we will reform our operational and personnel
systems under our new Corporate Philosophy. We will also work to enhance our organizational and humanresources capabilities through activities to reform our operations at all levels, as we aim to transform ourcorporate culture into a highly productive one.
In the fiscal year ending March 31, 2023, we forecast net sales of ¥94,000 million, operating income of¥13,000 million, ordinary income of ¥13,700 million, and net income attributable to owners of the parentof ¥9,500 million.
In addition, the Osaka Soda Group will take all possible measures to protect the environment, safety, andproduct quality through Responsible Care activities and activities related to the ISO standards. At the sametime, we will also strive to develop as a company that is in harmony with the global environment bystrengthening our efforts to achieve the Sustainable Development Goals (SDGs), including resource andenergy conservation activities. In addition, we will prioritize corporate social responsibility and proactively
focus on legal compliance in our day-to-day business activities. We will also strengthen our internal control
system and strive to further enhance the Osaka Soda Group's corporate governance, as we aim to become agroup of companies that is trusted by society. We look forward to the continued support and encouragementof our shareholders.
2. Basic Approach to the Selection of 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.

7

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
Fiscal year ended
March 31, 2021
March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Notes and accounts receivable-trade, and contract assets
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
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
Total noncurrent assets
Total assets

8

17,436
26,6553,456
14,499
6,581
1,661
2,219
1,435
(69)
73,876

16,517
26,9203,434
20,499
7,703
2,191
2,628
2,326
(79)
82,142

17,401(10,904)
6,496
61,838(52,918)
8,920
2,305
1,026
(284)
741
1,707
4,119
(3,753)366
20,536

17,761(11,092)
6,669
64,308(52,702)
11,605
2,305
1,027
(353)
674
1,861
4,347
(3,868)478
23,594

498
184
99
782

315
155
79
550

22,965
24
325
869
(6)
24,17845,496
119,373

21,677
18
450
732
(7)
22,87147,016
129,159(Millions of yen)
Fiscal year ended
March 31, 2021
March 31, 2022
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 to shares
Other current liabilities
Total current liabilities
Noncurrent liabilities
Bonds with subscription rights to shares
Lease liabilities
Deferred tax liabilities
Net defined benefit liability
Asset retirement obligations
Other noncurrent liabilities
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
Non-controlling interests
Total net assets
Total net assets and liabilities

9

13,046
7,172
1,492
884
4,223
26,81814,229
7,172
2,990
968
8,733
5,756
39,850

8,737
986
2,463
2,705
171
257
15,322
42,141

908
1,349
2,733
166
254
5,412
45,263

15,87014,38846,387(7,669)68,977

15,871
14,391
54,255(7,658)76,859

8,292
48
(13)
(80)
8,247
7
77,232
119,373

6,833
64
212
(97)
7,012
23
83,896
129,159(2) Consolidated Statements of Income and Statements of Comprehensive Income
1) Consolidated Statements of Income

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Insurance claim income
Share of profit of entities accounted for using equity
methodForeign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
MethodOther
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
Total extraordinary loss
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Profit attributable to non-controlling interests
Net income attributable to owners of parents

10(Millions of yen)
Fiscal year ended
March 31, 2021
March 31, 2022
97,26688,08476,282
61,993
20,98426,09012,643
13,688
8,341
12,401
16
457
0
-

10
482
151
48

93
143
711

304
157
1,156

89
97

88
-

28
214
8,838

33
122
13,435

0
0

309
309

158
158
8,680
2,585
44
2,630
6,050
(0)
6,050

333
333
13,412
4,141
(171)
3,970
9,441
(0)
9,442

2) Consolidated statements of Comprehensive Income

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:Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling
Interests

11(Millions of yen)
Fiscal year ended
March 31, 2021
March 31, 2022
6,050
9,441
4,113
40
(22)
437
2
4,572
10,622(1,459)
15
205
(17)
22
(1,233)8,208

10,623
(0)

8,207
0

(3) Consolidated Statements of Changes in Net Assets
FY2021(Fiscal year ended March 31, 2021)(Millions of yen)
Capital Stock
Balance at beginning of current
periodChanges of items during period

Shareholders’ equity
Retainedearnings

Capitalsurplus15,87014,387

41,870TreasurysharesTotal shareholders’equity65,446(6,682)Issuance of new shares－

Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Net change of items other thanshareholder’s equity
Total changes of items during
periodBalance at end of current period(1,533)(1,533)

6,050

6,050

1

(1,000)13(1,000)
14

－

1

4,517

(987)

3,531

15,87014,38846,387(7,669)68,977

Accumulated other comprehensive income

Balance at beginningof current period
Changes of items
during period
Issuance of newsharesDividends ofsurplusProfit attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Net change ofitems other thanshareholder’sequityTotal changes of
items during period
Balance at end ofcurrent period

Valuationdifference on
available-forsale securities

Deferred
gains or losses
on hedge

4,177

8

Total
NonReaccumulated controllingmeasurements
otherinterestsof definedcomprehensive
benefit plansincomeForeigncurrencytranslation
adjustments
7

(518)

3,674

－

Total net
assets69,121－(1,533)6,050(1,000)
14

4,114

40

(20)

437

4,572

7

4,580

4,114

40

(20)

437

4,572

7

8,111

8,292

48

(13)

(80)

8,247

7

77,23212

FY2022(Fiscal year ended March 31, 2022)(Millions of yen)
Stockholders’ Equity

Balance at beginning of current
periodChanges of items during period
Issuance of new shares
Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares
Net change of items other thanshareholder’s equity
Total changes of items during
periodBalance at end of current period

Capital stock

Capital surplus

Retained earnings

Treasury stock

Total shareholders’equity15,87014,38846,387(7,669)68,9771

1

2(1,574)(1,574)

9,442

9,442

1

(1)
12

(1)
14

1

2

7,867

11

7,882

15,871

14,391

54,255(7,658)76,859

Accumulated other comprehensive income

Balance at beginningof current period
Changes of items
during period
Issuance of newsharesDividends ofsurplusProfit attributableto owners ofparentPurchase oftreasury shares
Disposal oftreasury shares
Net change ofitems other thanshareholder’sequityTotal changes of items
during period
Balance at end ofcurrent period

Valuationdifference on
available-forsale securities

Deferred
gains or losses
on hedge

Foreigncurrencytranslation
adjustments

8,292

48

(13)

Total
NonReaccumulated
controllingmeasurements
otherinterestsof definedcomprehensive
benefit plansincome
(80)

8,247

7

Total net
assets77,232

2(1,574)
9,442
(1)
14

(1,458)

15

226

(17)

(1,234)16(1,218)(1,458)

15

226

(17)

(1,210)

16

6,663

6,833

64

212

(97)

7,012

23

83,89613

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2021
March 31, 2022
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
Loss (gain) on sales of short-term and long-term investment
securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Insurance claim income
Increase (decrease) in accrued consumption taxes
Share of loss (profit) of entities accounted for using equity
methodOther, net
Sub totalInterest and dividend income received
Interest expenses paid
Proceeds from insurance income
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Proceeds from redemption of securities
Purchase of investment securities
Proceeds from sales of investment securities
Other, net
Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Redemption 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

8,680
3,894
182
(31)
(27)
(560)
(281)

13,412
3,731
182
8
83
28
-

(474)
89
(15)
158
(0)
-

(493)
88
(107)
333
(309)

(1,374)
71
(114)
(0)
(65)
97

(2,049)
1,013
(151)
(43)
(48)

1,082
11,312484(89)
0(2,360)
9,347

(179)
15,413493(88)
151(2,592)
13,378(1,772)
0
(58)
500
(516)
177
(181)
(1,850)(5,685)(66)(1,172)348(386)(6,961)(595)(1,263)(1,002)(1,533)(69)(4,464)
4
3,036
28,89931,936(1)(1,574)(69)(1,646)310
5,080
31,93637,016

(5) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable.
(Changes in Accounting Policies)(Application of Accounting Standard for Revenue Recognition, etc.)
From the beginning of the fiscal year, the Company has applied ASBJ Statement No. 29 “AccountingStandard for Revenue Recognition” (March 31, 2020), etc. Accordingly, revenue is recognized whencontrol of the promised goods or services is transferred to the customer, at the amount expected to bereceived in exchange for those goods or services.
As a result, for construction contracts, the percentage of completion method was previously applied toconstruction work for which the outcome of progress was deemed certain, and the completed contract
method was applied to other construction work. However, the Company has changed to estimating thedegree of progress in satisfying performance obligations and recognizing revenue over a certain period oftime based on the degree of progress.
Revenues from agency transactions were previously recognized at the total amount of consideration
received from customers, but for transactions where the Osaka Soda Group’s role in providing goods andservices to customers is classified as that of an agent, revenue is recognized at the net amount after
subtracting amounts paid to suppliers from amounts received from customers.
For export sales, previously, revenue was mainly recognized at the time of shipping, but the Company has
now changed to the method of recognizing revenue when the burden of risk is transferred to customers,
based on the trade terms set forth in the Incoterms.
Regarding the application of the Accounting Standard for Revenue Recognition, etc., in accordance withthe transitional treatment set forth in the proviso of Paragraph 84 of the Accounting Standard for Revenue
Recognition, the cumulative effect of the retrospective application of the new accounting policy prior to
the beginning of the fiscal year has been added or subtracted from retained earnings at the beginning of the
fiscal year, and the new accounting policy will be applied from the balance at the start of the fiscal year,
but there is no effect on the balance at the beginning of the fiscal year.
As a result, net sales for the fiscal year ended March 31, 2022 decreased ¥23,741 million, cost of sales
decreased ¥23,608 million, and operating income, ordinary income, and income before income taxes eachdecreased ¥133 million.
As a result of the application of the Accounting Standard for Revenue Recognition, “notes and accounts
receivable-trade,” which were presented under “current assets” on the consolidated balance sheet in theprevious fiscal year, have been included in “notes & accounts receivable-trade and contract assets” fromthe fiscal year.
Furthermore, in accordance with the transitional treatment set forth in Paragraph 89-2 of the AccountingStandard for Revenue Recognition, etc., the Company has not reclassified any items from the previous
fiscal year as a result of new presentation methods.
(Application of Accounting Standard for Fair Value Measurement, etc.)
The Company has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No.
30, July 4, 2019) , etc. from the beginning of the fiscal year and, in accordance with the transitional
treatment set forth in Paragraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph44-2 of the “Accounting Standard for Financial Instruments ” (ASBJ Statement No. 10, July 4, 2019), theCompany will apply the new accounting policy set forth in the Accounting Standard for Fair Value
Measurement, etc. prospectively. The application of this standard had no effect on consolidated financial
statements.

15

(Segment Information)
FY2021(Fiscal year ended March 31, 2021)
Basic
Chemical
Products

Functional
Chemical
Products

Housing
Facilities
and Others

Total(Millions of yen)
Consolidated
Adjustments
operating*1
income *2

Net sales
External sales
42,41640,744
14,106
97,266
97,266－
Intersegment－
sales or
28
153
654
836
(836)
reclassifications
Total
42,44540,897
14,76098,103(836)
97,266
Segment income
3,555
5,780
254
9,590
(1,249)8,341
Segment assets
39,73937,498
6,955
84,19335,180
119,373
Other items
Depreciation
2,266
1,199
65
3,531
363
3,894
Amortization of
4
56
－
61
121
182
goodwill
Investment toentities accounted
－
1,118
－
1,118
－
1,118
for using equity
methodIncrease ofcurrent and
1,504
526
95
2,126
261
2,388
noncurrent assets
Notes:(1) Adjustments of segment income of ¥(1,249) million are corporate expenses not allocated to reportablesegments. Most of above-mentioned corporate expenses are not attributable to a reporting segment andrelated to fundamental research and development as well as administrative departments.
(2) Adjustments of segment assets of ¥35,180 million are corporate assets of ¥35,283 million, which are notallocated to reportable segments. Above-mentioned corporate assets are mainly parent company’s assets,
which are surplus operating funds (cash and short terms securities), long term investment capital(investment securities, etc.), and related to administrative, research and development departments.
(3) Adjustments of Increase of current and noncurrent assets of ¥261 million are for administrative
department and research and development department investment.
(4) Segment income is adjusted to operating income of consolidated statement of income.

16

FY2022(Fiscal year ended March 31, 2022)
Basic
Chemical
Products

Functional
Chemical
Products

Housing
Facilities
and Others

Total(Millions of yen)
Consolidated
Adjustments
operating*1
income *2

Net salesJapan
29,932
21,1095,234
56,27556,275－Asia
5,038
17,431
27
22,49822,498－Europe
761
5,090
5,851
5,851
－
－
Others
1,210
2,248
3,458
3,458
－
－
Revenue fromContracts with
36,94245,8795,261
88,08488,084－
Customers
Other Revenue
－
－
－
－
－
－
External sales
36,94245,8795,261
88,08488,084－
Intersegment
sales or
147
626
2,122
2,895
(2,895)－
reclassifications
Total
37,08946,505
7,384
90,980(2,895)88,084
Segment income
4,658
8,684
332
13,674(1,272)
12,401
Segment assets
40,57350,238
4,472
95,28333,876
129,159
Other items
Depreciation
2,080
1,229
52
3,362
368
3,731
Amortization of
4
56
－
61
121
182
goodwill
Investment toentities accounted
－
1,189
－
1,189
－
1,189
for using equity
methodIncrease ofcurrent and
5,074
1,482
41
6,599
191
6,790
noncurrent assets
Notes:(1) Adjustments of segment income of ¥(1,272) million are corporate expenses not allocated to reportablesegments. Most of above-mentioned corporate expenses are not attributable to a reporting segment andrelated to fundamental research and development as well as administrative departments.
(2) Adjustments of segment assets of ¥33,876 million are corporate assets of ¥33,814 million, which are notallocated to reportable segments. Above-mentioned corporate assets are mainly parent company’s assets,
which are surplus operating funds (cash and short term securities), long term investment capital(investment securities, etc.), and related to administrative, research and development departments.
(3) Adjustments of Increase of current and noncurrent assets of ¥191 million are for administrative
department and research and development department investment.
(4) Segment income is adjusted to operating income of consolidated statement of income.

17(Per Share Information)
Fiscal year ended
March 31, 2021
Net assets per share (Yen)
3,310.56
Earnings per share (Yen)
257.37
Diluted earnings per share (Yen)
230.23* Basis for calculation of earnings per share and diluted earnings per share is as follows.

March 31, 2022
3,594.69
404.73363.53Fiscal year ended
March 31, 2021

March 31, 2022

Net income (Millions of yen)Amount not attributable to owners of common stock (Millions of yen)
Net income related to owner of common stock (Millions of yen)
Weighted average number of common stock (Thousands of shares)

6,050
－
6,050
23,510

9,442
－
9,442
23,329Diluted earnings per share
Adjustment to net income (Millions of yen)
Increase of common stock (Thousands of shares)(Bonds with subscription rights to shares) (Thousands of shares)
Details of shares not included in calculation of fully diluted net income
per share due to non-dilutive effect－2,771(2,771)－
2,664(2,664)－－

Earnings per share

4. Change of Officers(1) Change of Chief Executive Officer
Not applicable(2) Change of other Officers① Retirement of director (Scheduled date of retirement: June 29, 2022).
Director Lead Executive Officer
Yoshiro Furukawa(Still remains the president of SANYO FINE Co., Ltd.)

18