(Reference Translation)
Aug 7, 2020

OSAKA SODA CO., LTD.
CONSOLIDATED FINANCIAL RESULTS
For the quarterly period ended June 30, 2020
(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, Director, General Manager, Administration Division(Telephone: +81-6-6110-1560)

Scheduled date of filing of quarterly securities report:

Aug 11, 2020

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, 2020

June 30, 2019

Change *Change *Net sales

Millions of yen

23,257(13.0)%

26,736

2.2%

Operating income

Millions of yen

1,947(26.5)%

2,649

7.6%

Ordinary income

Millions of yen

2,165(23.3)%

2,821(2.3)%

Net income

Millions of yen

1,470(13.2)%

1,693(18.0)%

Comprehensive income

Millions of yen

2,577

82.0%

1,415(13.9)%

Net income per share

Yen

61.96

-

73.02

Diluted net income per share

Yen

55.05

-63.56-(Note)

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

(2)Financial Condition
June 30, 2020

March 31, 2020

Total assets

Millions of yen

111,431

110,851

Net assets

Millions of yen

70,93069,121EquityMillions of yen

70,927

69,121

%

63.7

62.4

Equity ratio

12. Dividends
Year ending Mar. 31, 2021

(Forecast)Year ending Mar. 31, 2021

Year ended Mar. 31, 2020－－

End of first quarterEnd of second quarter

32.50

32.50

End of third quarter－－End of fourth quarter

32.50

32.50

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, 2021
First half

Full-year
Change*Change*

Net sales

Millions of yen

46,000(13.3)%

96,000(9.0)%

Operating income

Millions of yen

3,300(33.4)%

8,000(17.5)%

Ordinary income

Millions of yen

3,500(32.6)%

8,400(18.6)%

Net income

Millions of yen

2,400(24.8)%

5,700(12.4)%

Yen

101.14-240.22-

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, 2020:

26,731,415

shares

As of March 31, 2020:

26,731,415

shares

As of June 30, 2020:

3,002,736

shares

As of March 31, 2020:

3,002,722

sharesThree months ended June 30, 2020

23,728,689

sharesThree months ended June 30, 201923,191,445

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, 2020, Japan’s economy has remained in an extremely difficult
situation due to the sluggish economic activity caused by the spread of novel coronavirus infections. Recently,
the number of newly infected person has been on the rise again, and the outlook remains uncertain.
Under the circumstances, in the last year of the Medium-Term Management Plan “BRIGHT - 2020”, which waslaunched from the previous fiscal year, Osaka Soda Group continued to promote three basic policies, “Creatingnew growth engines”, “Establishing a profitable global business”, and “Completing business structural reforms”.
As a result, net sales were ¥23,257 million, a decrease of 13.0% compared to the same period of fiscal 2019.
Operating income was ¥1,947 million, a decrease of 26.5% compared to the same period of fiscal 2019.
Ordinary income was ¥2,165 million, a decrease of 23.3% compared to the same period of fiscal 2019. Net
income attributable to owners of parent was ¥1,470 million, a decrease of 13.2% compared to the same periodof fiscal 2019.
The following is a summary of reporting segments.
Basic Chemical Products
In Chlor-Alkali, net sales decreased due to the decline in overall domestic demand caused by the spread ofnovel coronavirus infections
In Epichlorohydrin, net sales decreased due to the decline in domestic & overseas demand though electronicmaterials sales continued to increase steadily.
As a result, Basic Chemical Products reported net sales of ¥10,138 million, down 17.1% compared to the same
period of fiscal 2019.
Functional Chemical Products
Diallyl Phthalate Resin was affected by the declining demand of UV curable inks in Europe due to the spreadof novel coronavirus infections.
In Allyl Ethers, net sales increased due to volume growth in exported sales to United States.
In Synthetic Rubber and related businesses, Epichlorohydrin Rubber was affected by the decline in thenumber of global automobiles production. Acrylic Rubber was increasingly adopted by new customers in
China and Europe.
In Separation Media in Pharmaceutical Industry (Silica Gel for Liquid Chromatography), the demand for
peptide drug purification continued to increase in India and China. In addition, Colum for Liquid
Chromatography and Analytical Instruments continued to increase favorably in instruments sales to Korea.
In Active Pharmaceutical Ingredients (API) and their Intermediates, the sales of both anti-tuberculosis
drug intermediates and insomnia treatment intermediates increased. Also, the number of contract
manufacturing increased in high pharmacologically active drug.
As a result, Functional Chemical Products reported net sales of ¥9,220 million, down 9.9% compared to thesame period of fiscal 2019.
Housing Facilities and Others
Net sales were ¥3,898 million, down 8.8% compared to the same period of fiscal 2019. Construction materials
sales were sluggish.
(2) Financial Condition
AssetsCurrent assets were ¥69,504 million, a decrease of 0.5% since March 31, 2020. The decrease was due
primarily to a decrease of ¥2,055 million in notes and accounts receivable-trade, a decrease of ¥770 million in4cash and deposits respectively, an increase of ¥1,043 million in merchandise and finished goods, an increaseof ¥1,036 million in electronically recorded monetary claims, an increase of ¥219 million in work in process, anincrease of ¥106 million in raw materials and supplies respectively.
Noncurrent assets were ¥41,927 million, an increase of 2.3% since March 31, 2020. The decrease was due
primarily to an increase of ¥1,608 million in investment securities, a decrease of ¥491 million in property, plant,and equipment – net.
As a result, Total assets were ¥111,431 million, an increase of 0.5% since March 31, 2020.
Liabilities
Current liabilities were ¥24,783 million, a decrease of 7.0% since March 31, 2020. The decrease was due
primarily to a decrease of ¥ 1,033 million in notes and accounts payable- trade, a decrease of ¥835 million inincome taxes payable respectively.
Noncurrent liabilities were ¥15,717 million, an increase of 4.3% since March 31, 2020. The increase wasdue primarily to an increase of ¥706 million in deferred tax liabilities.
As a result, Total liabilities were ¥40,501 million, a decrease of 2.9% since March 31, 2020.
Net assets
Net assets were ¥70,930 million, an increase of 2.6% since March 31, 2020.
(3) Earnings Forecasts
There are no revisions to the earnings forecast from the previous forecast announced in the “Consolidated
financial results both for the quarterly period ended September 30, 2020 and for the year ended March 31,2021” dated on May 11, 2020.

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

6March 31, 2020

June 30, 2020

15,09925,641
3,096
14,299
6,901
1,368
2,268
1,296
(100)
69,871

14,32923,586
4,132
14,798
7,944
1,587
2,374
850
(100)
69,504

10,11011,743
21,853

9,736
11,62521,362

681
346
1,027

635
323
959

16,803368
933(6)18,09940,980110,851

18,411290909(6)19,60541,927
111,431

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
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
Non-controlling interests
Total net assets
Total net assets and liabilities

7

March 31, 2020

June 30, 2020

13,159
7,767
1,278
911
3,543
26,66012,125
7,767
443
457
3,990
24,783

10,000
436
281
3,265
1,085
15,06941,73010,000
1,142
13
3,243
1,317
15,71740,501

15,87014,387
41,870(6,682)65,446

15,87014,38742,569(6,682)
66,1454,177
8
7(518)
3,674
69,121
110,851

5,305
5(21)
(508)
4,781
3
70,930111,431

CONSOLIDATED STATEMENTS OF INCOME(Millions of yen)Three Months Ended
June 30, 2019
June 30, 2020
26,73623,257
20,93918,3145,797
4,942

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Operating income

3,147
2,649

2,994
1,947

3
239
114
256
-

14268

21282

Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodOtherTotal non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange loss
Other
Total non-operating expenses
Ordinary income

24-221064
896
2,821

24
664
2,165

Extraordinary loss
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Other
Total extraordinary loss
Income before income taxes

25363
2391
2,430

42422,123

Income taxes - current
Income taxes - deferred
Total income taxes
Net income

345
391
737
1,693

371
282
653
1,470

Net income attributable to non-controlling interests
Net income attributable to owners of parent－
1,693(0)1,470

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

9

Three Months Ended
June 30, 2019
June 30, 2020
1,693
1,470(283)
(6)
38(0)

1,128(2)(26)
9(2)(277)1,415

1,107
2,577

1,415－

2,577(0)

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, 2019

(Millions of yen)

Basic

Functional

Housing

Consolidated

ChemicalChemicalFacilities

Products

Productsand Others

Total

Adjustments*1

operatingincome *2

Net sales
External sales

12,233

10,2284,274

26,736－

26,736925231266(266)－

12,242

10,254

4,506

27,003(266)

26,736

1,374

1,407

160

2,942(292)2,649Intersegment sales
or reclassifications
Total
Segment income

Note 1:

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 administrativedepartments.

Note 2:

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

Three months ended June 30, 2020

(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:

10,138

9,220

3,898

23,257－

23,257

853

133

194

(194)

－

10,147

9,273

4,031

23,452(194)

23,257

1,089

1,075

66

2,231(283)1,947

Adjustments of segment income of ¥(283) 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.

10