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.

February 10, 2023

Consolidated Financial Results
for the Nine Months Ended December 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 to file quarterly securities report:
February 13, 2023
Scheduled date to commence dividend payments:
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the Nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)(1) Consolidated operating results (cumulative)
Net sales
Nine 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%

December 31, 2022

77,70519.0

13,951

41.8

14,95640.7

10,33436.9

December 31, 2021

65,320

－

9,840

56.6

10,627

63.5

7,550

73.4

Note: Comprehensive income

For the Nine months ended December 31, 2022:
For the Nine months ended December 31, 2021:

Basic earnings
per share
Nine months ended
December 31, 2022

¥11,633 million¥6,144 million[89.3%][(16.1) %]Diluted earnings
per share
Yen

Yen

－

422.93

December 31, 2021
323.65290.71
Note1: 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 Nine months ended December 31, 2021 represent amounts after theapplication of the said accounting standard, etc. and year over year increases/decreases (%) are not provided.
Note2: The amount of diluted earnings per share for the nine months ended December 31, 2022, is not provided because there are no
dilutive shares.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

December 31, 2022

139,002100,760

72.5

March 31, 2022

129,159

83,896

64.9

Reference:

EquityAs of December 31, 2022:
As of March 31, 2022:¥100,730 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 December 31, 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 December 31, 2022

1,047,280 shares

As of March 31, 2022

3,399,626 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Nine months ended December 31, 2022

24,436,157 shares

Nine months ended December 31, 2021

23,329,382 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 Nine months ended December 31, 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 Nine months ended December 31, 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) 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

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4
6
8
8
8
9

1. Qualitative Information Concerning Results for the Nine months ended December 31, 2022
(1) Analysis of Operating Results
During the nine months ended December 31, 2022, the Japanese economy continued to show signs ofrecovery as restrictions on activities continued to be eased amid the transition to 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 and rising raw material and fuel prices, as well as
the prolonging of the situation in Ukraine, the stagnation in economic activities caused by the spread of
COVID-19 in China, rapid fluctuations in foreign exchange rates, and the global progression of inflation.
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 nine months ended December 31, 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,” the Sustainability Committee began its activities, and we arepromoting efforts to achieve the KPIs we have set.
As a result of the above, net sales for the nine months ended December 31, 2022, increased 19.0% year on
year to ¥77,705 million. In terms of income, operating income increased 41.8% year-on-year to ¥13,951
million, ordinary income increased 40.7% to ¥14,956 million, and net income attributable to owners of theparent increased 36.9% to ¥10,334 million, meaning that the Company recorded its highest ever results ateach level of profit for the first nine months of the consolidated fiscal year, by a significant margin, and also
exceeded its highest ever profit for the year.
An overview of conditions in each segment is as follows.
< Basic chemicals >In Chlor-Alkali, despite the impact of rising raw material and fuel prices, particularly in relation to Caustic
Soda, net sales increased thanks partly to price revisions.
In Epichlorohydrin, although demand fell going into the third quarter, net sales increased thanks partly toprice revisions associated with rising raw material and fuel prices and the impact of foreign exchange.
As a result of the above, net sales in the Basic chemicals business increased 22.1% year on year to ¥33,593
million.
< Functional chemicals >In the synthetic rubber business, net sales of Epichlorohydrin Rubber increased, particularly to customers inAsia, partly because the number of automobiles being produced globally began to increase. Net sales ofAcrylic Rubber increased, particularly to customers in Asia, as it was adopted for new applications in Japanand overseas.

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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 16.4% year on year to¥39,030 million.
< Housing facilities and others >Net sales in the Housing facilities and others business increased 19.1% year on year to ¥5,081 million as aresult of robust sales of Housing Facilities.
(2) Analysis of Financial Position(Assets)
Current assets were ¥89,617 million, an increase of 9.1% since March 31, 2022. The increase was due
primarily to increases of ¥3,409 million in notes and accounts receivable-trade, and contract assets, ¥2,410
million in electronically recorded monetary claims, and ¥1,529 million in merchandise and finished goods.
Noncurrent assets were ¥49,385 million, an increase of 5.0% since March 31, 2022. The increase was due
primarily to an increase of ¥2,347 million in investment securities, while property, plant and equipment
decreased ¥5 million.
As a result, total assets as of December 31, 2022, were ¥139,002 million, an increase of 7.6% since March 31,
2022.
(Liabilities)
Current liabilities were ¥32,363 million, a decrease of 18.8% since March 31, 2022. The decrease was due
primarily a decrease of ¥8,733 million in current portion of bonds with subscription rights to shares, while
notes and accounts payable-trade increased ¥2,649 million.
Noncurrent liabilities were ¥5,878 million, an increase of 8.6% since March 31, 2022. The increase was due
primarily to an increase of ¥627 million yen in deferred tax liabilities.
As a result, liabilities as of December 31, 2022, were ¥38,242 million, a decrease of 15.5% since March 31,
2022.
(Net assets)
Net assets as of December 31, 2022, were ¥100,760 million, an increase of 20.1% since March 31, 2022. The
increase was due primarily to increase of ¥8,117 million in retained earnings and ¥2,618 million in capitalsurplus, while treasury stock decreased ¥4,828 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.

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2. Quarterly Consolidated Financial Statements and Notes to Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As ofMarch 31, 2022
December 31, 2022
AssetsCurrent assets
Cash and deposits
16,517
13,623
Notes and accounts receivable-trade, and contract assets
26,92030,329
Electronically recorded monetary claims
3,434
5,844
Short term investment securities
20,49921,998Merchandise and finished goods
7,703
9,233
Work in process
2,191
2,817
Raw materials and supplies
2,628
3,746
Other current assets
2,326
2,027
Less: Allowance for doubtful accounts(79)(3)
Total current assets
82,142
89,617
Noncurrent assets
Property, plant and equipment
Buildings and structures – Net
6,669
6,630
Machinery, equipment, and vehicles – Net
11,605
11,269
Land
2,305
2,305
Lease assets, net-PPE
674
642
Construction in progress
1,861
2,304
Other – Net
478
437
Total property, plant and equipment
23,594
23,588Intangible assets
Goodwill
315
231
Software
155
104
Other
79
149
Total intangible assets
550
485
Investments and other assets
Investment securities
21,67724,025
Deferred tax assets
450
606
Long-term loans receivable
18
15
Other, net
732
767
Less: Allowance for doubtful accounts
(7)
(104)
Total investment and other assets
22,871
25,310Total noncurrent assets
47,01649,385
Total assets
129,159
139,002-4-

(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

December 31, 2022

14,229
7,172
2,990
968
8,733
5,756
39,85016,878
7,172
2,240
450
－
5,622
32,363

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

873
1,976
2,647
166
214
5,878
38,242

15,871
14,391
54,255(7,658)76,85915,871
17,00962,373(2,830)92,424

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

7,452
(141)
1,068
(72)
8,305
29
100,760
139,002(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)
Nine Months ended
December 31, 2021
December 31, 2022
65,32077,70545,46753,35019,852
24,355
10,012
10,404
9,840
13,951
7
459
38
145
151
78
881

10
557
2
450
12
156
1,189

66
－
26
93
10,627

67
93
23
184
14,956

309
309

－
－

92
92
10,844141
141
14,814

3,343
(48)
3,294
7,550
(0)
7,550

4,188
291
4,479
10,334(0)
10,334

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)
Nine months ended
December 31, 2021
December 31, 2022
7,550
10,334(1,503)
(35)
113
6
14
(1,405)
6,144

617
(206)
838
25
23
1,299
11,6336,144
0

11,6275

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable(Notes on Major Changes in Shareholders’ Equity)
During the nine months ended December 31, 2022, the Company disposed of treasury stock inaccordance with the exercise of subscription rights to shares attached to convertible bonds with
subscription rights to shares. As a result, capital surplus increased by ¥2,614 million and treasury stock
decreased by ¥6,077 million. In addition, the Company acquired 249,500 shares of treasury stock,pursuant to a resolution passed at a meeting of the Board of Directors held on November 7, 2022. As aresult, during the nine months ended December 31, 2022, treasury stock increased ¥1,018 million.

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(Segment Information and Other Items)

The Nine months ended December 31, 2021 (from April 1, 2021 to December 31, 2021)(Millions of yen)Basicchemicals

Functional
chemicals

Housingfacilities
and others

Total

Adjustments*1

Consolidated*2

Net salesJapan
22,455
16,072
4,211
42,76942,769－Asia
3,668
12,14625
15,84015,840－Europe
560
4,196
4,757
4,757
－
－
Others
830
1,123
1,953
1,953
－
－
Revenue fromContracts with
27,51433,5384,266
65,32065,320－
Customers
Other Revenue
－
－
－
－
－
－
External sales
27,51433,5384,266
65,32065,320－Intersegment
sales or
71
500
1,870
2,443
(2,443)－
reclassifications
Total
27,58634,0396,137
67,764(2,443)65,320
Segment income
3,791
6,574
354
10,720(880)
9,840
Notes:(1) Adjustments of segment income of ¥ (880) 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.

The Nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)(Millions of yen)Basicchemicals

Functional
chemicals

Housingfacilities
and others

Total

Adjustments*1

Consolidated*2

Net salesJapan27,273
15,794
5,071
48,14048,140－Asia
4,500
15,914
10
20,425
20,425－
Europe
571
4,551
5,123
5,123
－
－
Others
1,247
2,769
4,016
4,016
－
－
Revenue fromContracts with
33,59339,0305,081
77,70577,705－
Customers
Other Revenue
－
－
－
－
－
－
External sales
33,59339,0305,081
77,70577,705－Intersegment
sales or
110
540
882
1,533
(1,533)－
reclassifications
Total
33,70439,5705,964
79,238(1,533)77,705
Segment income
4,726
9,884
327
14,938(987)
13,951
Notes:(1) Adjustments of segment income of ¥ (987) 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.

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