(Reference Translation)
Aug 6, 2019OSAKA SODA CO., LTD.
CONSOLIDATED FINANCIAL RESULTS
For the quarterly period ended June 30, 2019
(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, President & Chief Executive Officer

For inquiry:

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

Scheduled date of filing of quarterly securities report:

Aug 7, 2019

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, 2019

June 30, 2018

Change *Change *Net sales

Millions of yen

26,736

2.2%

26,160

10.7%

Operating income

Millions of yen

2,649

7.6%

2,461

61.1%

Ordinary income

Millions of yen

2,821(2.3)%

2,887

59.1%

Net income

Millions of yen

1,693(18.0)%

2,065

68.4%

Comprehensive income

Millions of yen

1,415(13.9)%

1,644(23.3)%

Net income per share

Yen

73.02

-

91.44

Diluted net income per share

Yen

63.56

-

76.71

-

(Note)

Percent changes for three months are year-on-year comparisons.

(2)Financial Condition
June 30, 2019

March 31, 2019

Total assets

Millions of yen

110,529

112,661

Net assets

Millions of yen

65,56564,548EquityMillions of yen

65,56564,548

%

59.3

57.3

Equity ratio

12. Dividends
Year ending Mar. 31, 2020

(Forecast)Year ending Mar. 31, 2020

Year ended Mar. 31, 2019－－End of first quarterEnd of second quarter

32.50

30.00

End of third quarter－－End of fourth quarter

32.50

35.00

Full year

65.00

65.00

(Note) Change in dividends forecast from the most recent announcement: None

3. Earnings Forecast for the fiscal year ending March 31, 2020
First half

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) Change in dividends forecast from the most recent announcement: None
* 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)

(4)

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:

None

Number of outstanding shares (common stock)1) Number of shares outstanding at the end of the period (including treasury shares)
As of June 30, 2019:26,272,370

shares

As of March 31, 2019:

26,090,580

shares

As of June 30, 2019:3,002,016

shares

As of March 31, 2019:

3,001,554

sharesThree months ended June 30, 201923,191,445

sharesThree months ended June 30, 2018

22,583,312

shares2) Number of treasury shares at the end of period

3) Average number of shares outstanding in each period2*Disclosure regarding the execution of the quarterly review process:This quarterly financial results are outside the scope of the quarterly review by certified public accountants
or an audit firm.

*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 arebased 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 noresponsibility or liability for damage or loss caused by any error, inaccuracy, misunderstanding, or changes
with regard to this translation.

34. Qualitative Information(1)Results of Operations
During the three months ended June 30, 2019, Japan’s economy has continued its moderate recovery trend,with improvements in the employment situation and corporate profits, though the economic outlook remains
uncertain due to US-China trade friction and China’s economic slowdown.
Under the circumstances, in the second year of the Medium-Term Management Plan “BRIGHT - 2020”, which
was launched from the previous fiscal year, Osaka Soda Group continued to promote three basic policies,“Creating new growth engines”, “Establishing a profitable global business”, and “Completing businessstructural reforms”.
As a result, net sales were ¥26,736 million, an increase of 2.2% compared to the same period of fiscal 2018.
Operating income was ¥2,649 million, an increase of 7.6% compared to the same period of fiscal 2018.
Ordinary income was ¥2,821 million, a decrease of 2.3% compared to the same period of fiscal 2018. Net
income attributable to owners of parent was ¥1,693 million, a decrease of 18.0% compared to the same periodof fiscal 2018.
The following is a summary of reporting segments.
Basic Chemical Products
In Chlor-Alkali, net sales decreased due to the decline in demand for semiconductor & electronic materials.
In Epichlorohydrin, net sales increased due to volume growth affected by tightened environmental & safety
regulation in China as well as steady sales in domestic market.
As a result, Basic Chemical Products reported net sales of ¥12,233 million, up 0.7% compared to the sameperiod of fiscal 2018.
Functional Chemical ProductsIn Allyl Ethers, net sales increased due to Increase in sales volume for use in silane coupling agents exportedto China.
In Diallyl Phthalate Resin, net sales increased due to continued favorable sales of hot stamping in China, as
well as sales of UV curable inks in domestic and Europe.
In Synthetic Rubber and related businesses, Epichlorohydrin Rubber was affected by a decline in thenumber of automobiles manufactured in China. Acrylic Rubber was increasingly adopted by new customers
and the adoption for new parts by existing customers expanded.
In Separation Media in Pharmaceutical Industry (Silica Gel for Liquid Chromatography), peptide drug
purification continued favorable sales to Europe and USA. In addition, Colum for Liquid Chromatography andanalytical Instruments continued favorable sales to Korea and domestic sales.
In Active Pharmaceutical Ingredients (API) and their Intermediates, domestic sales of intermediates fortreatment of infectious diseases, export sales of vasodilator intermediate, and imported product sales ofgeneric drug API expanded, in addition, the supply of generic drug API using high pharmacological activity
facility made good progress.
In LCD (liquid crystal display) related products such as color resists, net sales decreased due to decline insales volume for LCD panels in China. In glass fiber, net sales decreased due to decline in domestic sales
volume for electronic materials.
As a result, Functional Chemical Products reported net sales of ¥10,228 million, down 0.7% compared to thesame period of fiscal 2018.
Housing Facilities and Others
Net sales were ¥4,274 million, up 14.9% compared to the same period of fiscal 2018, due to continued
favorable sales of consumer-related products.

4

(2) Financial Condition
AssetsCurrent assets were ¥67,138 million, a decrease of 1.6% since March 31, 2019. The decrease was due
primarily to a decrease of ¥1,399 million in notes and accounts receivable-trade.
Noncurrent assets were ¥43,390 million, a decrease of 2.4% since March 31, 2019. The decrease was due
primarily to an increase of ¥768 million in investment securities.
As a result, Total assets were ¥110,529 million, a decrease of 1.9% since March 31, 2019.
Liabilities
Current liabilities were ¥29,374 million, a decrease of 8.8% since March 31, 2019. The decrease was due
primarily to a decrease of ¥ 1,894 million in income taxes payable.
Noncurrent liabilities were ¥15,590 million, a decrease of 2.0% since March 31, 2019. The decrease wasdue primarily to a decrease of ¥426 million in provision for directors’ retirement benefits.
As a result, Total liabilities were ¥44,964 million, a decrease of 6.5% since March 31, 2019.
Net assets
Net assets were ¥65,565 million, an increase of 1.6% since March 31, 2019.
(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, 2020” dated on May 10, 2019.

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
Deferred tax assets
Other, net
Less: Allowance for doubtful accounts
Total investment and other assets
Total noncurrent assets
Total assets

6

March 31, 2019

June 30, 201911,87629,2683,508
12,499
7,050
1,643
1,827
685
(140)
68,21911,00627,8694,128
12,4997,284
1,746
1,902842(141)
67,13810,442
11,52021,962

10,185
11,75521,940

864
474
1,338

818
444
1,262

19,642
442
1,062
(6)
21,14144,442
112,661

18,874
299
1,019
(6)
20,18743,390110,529

CONSOLIDATED BALANCE SHEETS (Continued)(Millions of yen)

Liabilities
Current liabilities
Notes and accounts payable- trade
Short term loans payable
Income taxes payable
Provision for bonuses
Current portion of bonds with subscription rights to shares

Other current liabilities
Total current liabilities
Noncurrent liabilities
Bonds with subscription rights to shares
Deferred tax liabilities
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’ 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 assetsTotal net assets and liabilities

7March 31, 2019

June 30, 201915,586
7,767
2,280
889
1,464
4,211
32,197

15,318
7,767
386
451
1,053
4,398
29,37410,000
1,094
651
3,009
1,160
15,915
48,113

10,000
1,217
225
3,003
1,143
15,59044,96415,15013,66736,942(6,679)59,08015,355
13,87237,828(6,680)60,3755,781
111(327)
5,467
64,548112,6615,497(5)15(318)5,189
65,565110,529

CONSOLIDATED STATEMENTS OF INCOME(Millions of yen)Three Months Ended
June 30, 2018
June 30, 2019
26,16026,736
20,45820,9395,701
5,797

Net sales
Cost of sales
Gross profit

3,239
2,461

3,147
2,649

3
227
103239
11183
43
468

14
268

27
14
42
2,887

24
64
8
96
2,821

137
137-

95
95
2,930

25
363
2
391
2,430

Net income

756
108
864
2,065

345
391
737
1,693

Net income attributable to non-controlling interests
Net income attributable to owners of parent－2,065－
1,693

Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange 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
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

9Three Months Ended
June 30, 2018
June 30, 2019
2,065
1,693
(460)
57
(24)
8(0)

(283)
(6)
3
8(0)

(420)
1,644(277)
1,415

1,644－

1,415－

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

None

(2)

None

Notes on significant changes in shareholders’ equity:(3) Segment information
Three months ended June 30, 2018

(Millions of yen)

Basic

Functional

Housing

Consolidated

ChemicalChemicalFacilities

Products

Productsand Others

Total

Adjustments*1

operatingincome *2

Net sales
External sales

12,142

10,2973,720

26,160－26,160422143

171

(171)

－

12,146

10,3203,863

26,331(171)

26,160

1,444

1,235

42

2,721

(259)

2,461

Intersegment sales
or reclassifications
Total
Segment income

Note 1:

Adjustments of segment income of ¥(259) 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.

Note 2:

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

Three months ended June 30, 2019

(Millions of yen)

Basic

Functional

Housing

Consolidated

ChemicalChemicalFacilities

Products

Productsand Others

Total

Adjustments *1

operatingincome *2

Net sales
External sales
Intersegment sales
or reclassifications
TotalSegment income

Note 1:

12,233

10,2284,274

26,736－

26,736

925

231

266

(266)

－

12,242

10,254

4,506

27,003(266)

26,736

1,374

1,407

160

2,942(292)2,649

Adjustments of segment income of ¥(292) 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.

Note 2:

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

10