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.

November 7, 2022

Consolidated Financial Results
for the Six Months Ended September 30, 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 to file quarterly securities report:
November 8, 2022
Scheduled date to commence dividend payments:
December 5, 2022
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the Six months ended September 30, 2022 (from April 1, 2022 to September 30)(1) Consolidated operating results (cumulative)
Net sales
Six months ended(Percentages indicate year-on-year changes.)

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

September 30, 2022

51,915

23.1

9,722

70.7

10,854

76.3

7,505

69.7

September 30, 2021

42,157

－

5,694

62.8

6,158

66.5

4,421

78.7

Note: Comprehensive income

For the Six months ended September 30, 2022:
For the Six months ended September 30, 2021:

Basic earnings
per share
Six months ended
September 30, 2022

¥8,437 million¥3,997 million[111.1%][(0.7) %]Diluted earnings
per share
Yen

Yen

－

314.73September 30, 2021
189.55170.28Notes: The Company has applied ASBJ Statement No. 29 “Accounting Standard for Revenue Recognition”, etc. from the beginningof the previous fiscal year. Therefore, the figures for the Six months ended September 30, 2021 represent amounts after theapplication 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

Millions of yen

Millions of yen

September 30, 2022

138,018

99,75072.3

March 31, 2022

129,159

83,896

64.9

Reference:

EquityAs of September 30, 2022:
As of March 31,2022:¥99,722 million¥83,872 million%

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023

－

35.00

－

45.00

Fiscal year ending
March 31, 2023
(Forecast)Fiscal year-end

Total

Yen

Yen

－

45.00

80.00

－

45.00

90.00

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated financial results 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

Operating profit% Millions of yen

Ordinary profit% Millions of yen

Profit attributable toowners of parent

Basic earnings
Per share% Millions of yen%

Yen

Full year
98,000 11.3
15,700 26.6
16,900 25.8
11,700Note: Revisions to the forecast of consolidated financial results most recently announced: None

23.9

501.97

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of September 30, 2022

26,732,017 shares

As of March 31, 2022

26,732,017 shares(ii) Number of treasury shares at the end of the period
As of September 30, 2022
As of March 31, 2022

797,552 shares
3,399,626 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Six months ended September 30, 2022

23,846,330 shares

Six months ended September 30, 2021

23,328,288 shares* Quarterly financial results reports are exempt from quarterly review 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. Qualitative Information Concerning Results for the Six month ended September 30, 2022
(3) Analysis of Forward-looking Statement, Including Consolidated financial results Forecasts” on page 3 ofthe attached documents.

(Attached Documents)
INDEX
1. Qualitative Information Concerning Results for the Six month ended September 30, 2022
(1) Analysis of Operating Results(2) Analysis of Financial Position(3) Analysis of Forward-looking Statement, Including Consolidated financial results Forecasts

2
2
3
3

2. Quarterly Consolidated Financial Statements and Notes to Quarterly Consolidated Financial
Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(3) Consolidated Statements of Cash flows(4) Notes to Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)(Notes on Major Changes in Shareholders’ Equity(Segment Information and Other Items)

4

-1-

4
6
8
9
9
9
9

1. Qualitative Information Concerning Results for the Six month ended September 30, 2022
(1) Analysis of Operating Results
During the six months ended September 30, 2022, the Japanese economy continued to show signs ofrecovery from the impact of COVID-19, as society transitioning to a new phase of living with COVID-19.
Although it is expected that the economy will continue to recover going forward, the outlook is uncertain
owing to the impact of factors such as supply constraints, rising raw material and fuel prices, the prolonging
of the situation in Ukraine, the stagnation of economic activities in China as a result of the country’s zeroCOVID-19 policy, and rapid fluctuations in foreign exchange rates.
Under these circumstances, the Osaka Soda Group entered the final fiscal year of its seventh medium-term
management plan, “EMPOWER THE NEXT-22,” and worked together as a company to implement specificmeasures based on the four basic policies of "building a resilient business foundation," "promotion ofmarket-in-type development," "efforts to achieve the SDGs," and "reforming corporate culture andorganizational 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 six months ended September 30, 2022, in the Basic chemicals
business, we continued focusing on implementing more price revisions in response to rising raw material andfuel prices, while also engaging in replacement investment aimed at enhancing production efficiency, andcost reductions. In the Functional chemicals business, we further promoted the expansion of sales of Allyl
Ethers, for which we strengthened our production systems in the previous fiscal year. In the Healthcare
business, we are making capital investments in facilities related to active pharmaceutical ingredients (APIs)
and their intermediates, as well as pharmaceutical purification materials, and we aim to complete theseinvestments during the current fiscal year.
In relation to the "promotion of market-in-type development," we are making progress on the development of
ultra-high ionic conductive polymers for all-solid batteries, which was selected as a Green Innovation Fund
Project by NEDO.
In terms of our “efforts to achieve the SDGs,” we decided to establish a Sustainability Committee to further
strengthen and promote sustainability efforts across the Osaka Soda Group as a whole.
As a result of the above, net sales for the six months ended September 30, 2022, increased 23.1% year on
year to ¥51,915 million. In terms of income, operating income increased 70.7% year-on-year to ¥9,722
million, ordinary income increased 76.3% to ¥10,854 million, and net income attributable to owners of theparent increased 69.7% to ¥7,505 million, meaning that the Company recorded its highest ever results at eachlevel of profit for the first six months of the consolidated fiscal year, significantly exceeding the previous
records.
An overview of conditions in each segment is as follows.
< Basic chemicals >In Chlor-Alkali, net sales increased thanks to robust demand, particularly in relation to Caustic Soda, as wellas progress on price revisions related to rising raw material and fuel prices.
In Epichlorohydrin, net sales increased thanks to progress on price revisions related to rising raw material
and fuel prices, as well the impact of foreign exchange.
As a result of the above, net sales in the Basic chemicals business increased 25.3% year on year to ¥21,988
million.
< Functional chemicals >In the synthetic rubber business, net sales of Epichlorohydrin Rubber increased as the Company expanded its
share of the OA applications market, despite the impact on automotive applications of a decline in thenumber of automobiles produced. Net sales of Acrylic Rubber increased thanks to its adoption for new
applications in Japan and elsewhere in Asia.

-2-Net sales of DAP resin increased thanks to higher sales, particularly for insulating varnish applications in
Europe and China.Net sales of Allyl Ethers increased thanks to progress on expanding sales of Silane
coupling agents, particularly for paint and electronic materials applications in Europe and the US, as well theimpact of foreign exchange.
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 intermediates for treatments for diabetes complications, intermediates for insomnia
treatments, and APIs for osteoporosis.
As a result of the above, net sales in the Functional chemicals business increased 21.2% year on year to¥26,426 million.
< Housing facilities and others >Net sales in the Housing facilities and others business increased 24.4% year on year to ¥3,500 million as aresult of robust sales of Housing Facilities.
(2) Analysis of Financial Position(Assets)
Current assets were ¥89,939 million, an increase of 9.5% since March 31, 2022. The increase was due
primarily to increases of ¥5,593 million in notes and accounts receivable-trade, and contract assets
and¥3,271 million in cash and deposits.
Noncurrent assets were ¥48,078 million, an increase of 2.3% since March 31, 2022. The increase was due
primarily to an increase of ¥892 million in investment securities.
As a result, total assets as of September 30, 2022, were ¥138,018 million, an increase of 6.9% since March
31, 2022.
(Liabilities)
Current liabilities were ¥32,869 million, a decrease of 17.5% since March 31, 2022. The decrease was due
primarily to a decrease of ¥8,733 million in current portion of bonds with subscription rights to shares, while
notes and accounts payable - trade increased ¥1,817 million.
Noncurrent liabilities were ¥5,398 million, a decrease of 0.3% since March 31, 2022. The decrease was due
primarily to decreases of ¥67 million in net defined benefit liability and ¥39 million in other noncurrent
liabilities.
As a result, liabilities as of September 30, 2022, were ¥38,267 million, a decrease of 15.5% since March 31,
2022.
(Net assets)
Net assets as of September 30, 2022, were ¥99,750 million, an increase of 18.9% since March 31, 2022. The
decrease was due primarily to a decrease of ¥5,848 million in treasury stock.
(Cash flows)
Cash and cash equivalents as of September 30, 2022 were ¥39,288 million, an increase of ¥2,271 million
since March 31, 2022. The status of each type of cash flow during the six months ended September 30, 2022
and the main contributing factors were as follows.
(1) Net cash provided by operating activities amounted to ¥5,922 million (net cash of ¥7,277 million
provided in the same period of the previous fiscal year). The primary factors contributing to an increase
were income before income taxes of ¥10,730 million and depreciation of ¥1,840 million, while theprimary factors contributing to a decrease were an increase in notes and accounts receivable-trade andcontract assets of ¥3,467 million and income taxes paid of ¥2,674 million.
(2) Net cash used in investing activities amounted to ¥3,005 million (net cash of ¥2,322 million used in thesame period of the previous fiscal year). This was due primarily to the purchase of property, plant andequipment of ¥2,103 million.
(3) Net cash used in financing activities amounted to ¥1,339 million (net cash of ¥795 million used in thesame period of the previous fiscal year). This was due primarily to dividends paid of ¥1,049 million.
(3) Analysis of Forward-looking Statement, Including Consolidated financial results Forecasts
There are no changes to the earnings forecasts for the fiscal year ending March 31, 2023 announced on
August 5, 2022. If there are any changes in the future, the Company will appropriately disclose information
to that effect.
-3-

2. Quarterly Consolidated Financial Statements and Notes to Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2022
September 30, 2022
AssetsCurrent assets
Cash and deposits
16,517
19,789Notes and accounts receivable-trade, and contract assets
26,92032,514
Electronically recorded monetary claims
3,434
1,508
Short term investment securities
20,49919,499Merchandise and finished goods
7,703
9,342
Work in process
2,191
2,187
Raw materials and supplies
2,628
3,185
Other current assets
2,326
1,915
Less: Allowance for doubtful accounts(79)(2)
Total current assets
82,142
89,939Noncurrent assets
Property, plant and equipment
Buildings and structures – Net
6,669
6,690
Machinery, equipment, and vehicles – Net
11,605
11,648
Land
2,305
2,305
Lease assets, net-PPE
674
665
Construction in progress
1,861
2,109
Other – Net
478
464
Total property, plant and equipment
23,59423,883
Intangible assets
Goodwill
315
246
Software
155
111
Other
79
154
Total intangible assets
550
510
Investments and other assets
Investment securities
21,677
22,570
Deferred tax assets
450
413
Long-term loans receivable
18
16
Other, net
732
788
Less: Allowance for doubtful accounts
(7)
(104)
Total investment and other assets
22,871
23,684
Total noncurrent assets
47,01648,078
Total assets
129,159
138,018-4-

(Millions of yen)
As of
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
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-5-

March 31, 2022

September 30, 2022

14,229
7,172
2,990
968
8,733
5,756
39,85016,047
7,172
3,313
914
－
5,422
32,869

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

893
1,457
2,666
166
214
5,398
38,267

15,871
14,391
54,255(7,658)76,85915,871
17,00960,710(1,810)91,781

6,833
64
212
(97)
7,012
23
83,896
129,159

6,802
334
884
(81)
7,940
28
99,750138,018

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
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
Share of profit of entities accounted for using equity method
Foreign exchange gains
Insurance claim income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on abandonment of inventories
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
Net income
Profit attributable to non-controlling interests
Net income attributable to owners of parents-6-(Millions of yen)
Six Months ended
September 30, 2021
September 30, 2022
42,15751,91529,82935,13912,327
16,775
6,633
7,053
5,694
9,722
6
274
25
27
136
58
528

6
332
7
802
5
111
1,265

46
－
17
64
6,158

47
70
17
134
10,854

304
304

－
－

64
64
6,398

123
123
10,730

2,105
(128)
1,976
4,421
(0)
4,421

3,178
46
3,225
7,504
(0)
7,505

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
Share of other comprehensive income of entities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of parent
Comprehensive income attributable to non-controlling Interests-7-(Millions of yen)Six months ended
September 30, 2021
September 30, 2022
4,421
7,504
(526)
(30)
106
13
12
(424)
3,997

(30)
270
652
16
23
932
8,437

3,997
0

8,433
4

(3) Consolidated Statements of Cash flows
Six Months ended
September 30, 2021
September 30, 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
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss on retirement of non-current assets
Loss (gain) on sales of short-term and long-term investment securities
Share of loss (profit) of entities accounted for using equity method
Insurance claim income
Decrease (increase) in trade receivables and contract assets
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Other, 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
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Other, net
Net cash used in investing activities
Cash flows from financing activities
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

-8-

6,398
1,928
91
(1)
32
14
(280)
46
(12)
64
(304)
(25)
(136)
575
(1,381)
992
－
195
8,198
280
(46)
136
(1,291)
7,277

10,730
1,840
69
19
(54)
(67)
(338)
47
(249)
123
－
(7)
(5)
(3,467)(2,176)
1,581
142
107
8,294
344
(47)
5
(2,674)
5,922(1,977)
(57)
(456)
331
(162)
(2,322)(2,103)
(85)
(707)
－
(109)
(3,005)

－
(1)
(758)
(36)
(795)
98
4,258
31,93636,194(41)(235)(1,049)(13)(1,339)693
2,271
37,01639,288

(4) Notes to Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable(Notes on Major Changes in Shareholders’ Equity)
During the six months ended September 30, 2022, the Company disposed of treasury stock in accordancewith the exercise of subscription rights to shares attached to convertible bonds with subscription rights toshares. As a result, capital surplus increased by ¥2,614 million and treasury stock decreased by ¥6,077
million.
(Segment Information and Other Items)
First half of the previous fiscal year ended March 31, 2022 (from April 1, 2021 to September 30, 2021)(Millions of yen)Basicchemicals

Functional
chemicals

Housingfacilities
and others

Total

Adjustments*1

Consolidated*2

Net salesJapan
14,862
10,3592,796
28,01828,018
－
Asia
1,893
8,004
15
9,913
9,913
－
Europe
341
2,690
3,031
3,031
－
－
Others
447
746
1,193
1,193
－
－
Revenue fromContracts with
17,54421,8002,812
42,15742,157－
Customers
Other Revenue
－
－
－
－
－
－
External sales
17,54421,8002,812
42,15742,157－
Intersegment
sales or
11
338
1,453
1,804
(1,804)－
reclassifications
Total
17,555
22,1394,266
43,961(1,804)42,157
Segment income
1,930
4,226
99
6,256
(562)
5,694
Notes:(1) Adjustments of segment income of ¥ (562) 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) Segment income is adjusted to operating income of consolidated statement of income.

-9-

First half of the current fiscal year ending March 31, 2023 (from April 1, 2022 to September 30, 2022)(Millions of yen)Basicchemicals

Functional
chemicals

Housingfacilities
and others

Total

Adjustments*1

Consolidated*2

Net salesJapan
17,718
10,3733,500
31,59331,593－Asia
2,998
10,811
13,81013,810－－Europe
311
3,412
3,724
3,724
－
－
Others
958
1,828
2,787
2,787
－
－
Revenue fromContracts with
21,98826,4263,500
51,91551,915－
Customers
Other Revenue
－
－
－
－
－
－
External sales
21,98826,4263,500
51,91551,915－Intersegment
sales or
107
474
708
1,290
(1,290)－reclassifications
Total
22,095
26,901
4,208
53,205(1,290)51,915
Segment income
3,678
6,591
139
10,409(686)
9,722
Notes:(1) Adjustments of segment income of ¥ (686) 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) Segment income is adjusted to operating income of consolidated statement of income.

- 10 -