(Reference Translation)
February 9, 2018

Osaka Soda Co., Ltd.
CONSOLIDATED FINANCIAL RESULTS
For the quarterly period ended December 31, 2017
(Prepared under Japan GAAP, unaudited)

Company name:

Osaka Soda Co., Ltd.

Stock Exchange Listing:Tokyo

Securities code:

4046

URL:

http://www.osaka-soda.co.jp

Representative:

Tamotsu Sato, Representative Director, Chief Executive Officer

For inquiry:

Takuya Kajino, General Manager, Administration Division(Telephone: +81-6-6110-1560)

Filing date for quarterly report:

February 13, 2017

Date for commencement of dividends payment:－Supplementary materials for the quarterly 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
Nine Months Ended
December 31, 2017

December 31, 2016

Millions of yen

Change *Millions of yen

Change *Net sales

74,487

7.8%

69,090(8.5)%

Operating income

5,623

8.1%

5,201

0.1%

Ordinary income

6,143

16.6%

5,267(2.9)%

Net income attributable to owners of parent

3,987

15.0%

3,467

5.1%

Comprehensive income

6,574

47.2%

4,46632.4%

Note: Percent changes for nine months are year-on-year comparisons.
Net income per share(Yen)

Diluted net income per share(Yen)

187.61164.56150.07136.53

Note: OSAKA SODA CO., LTD. (the “Company”) has completed common shares consolidation at the rate of 5 to 1, effective
October 1, 2017. As a result, quarterly net income per share and quarterly diluted net income per share arecalculated assuming that the share consolidation was executed at the beginning of the previous fiscal year.

(2)Financial Condition
December 31, 2017

March 31, 2017

Millions of yenRatioMillions of yen

Ratio

Total assets

116,787－

101,503－

Net assets

58,848－52,725－Equity *58,848－52,725

－

－

50.4%

－

51.9%

Equity ratio

Note: Equity = “Total net assets” minus “Subscription rights to shares”

12. Dividends
Year ending Mar. 31, 2018Year ending Mar. 31, 2018Year ended Mar. 31, 2017－－5.50 yen*

5.00 yen－－(Forecast)End of first quarterEnd of second quarterEnd of third quarterEnd of fourth quarter

27.5 yen

6.00 yen－

11.0 yen

Full year
Note: 1.

Revisions of dividend forecast from the latest announcement: None

2. The Company has completed common shares consolidation at the rate of 5 to 1, effective October
1, 2017. As a result, the forecast of dividend per share for the fiscal year ending March 31, 2018 iseffected by the share consolidation. Calculating annual dividend for the same fiscal year ending
March 31, 2018 is not possible in accordance with the Ratio.
3. Earnings Forecast for the fiscal year ending March 31, 2018
Full-year
Millions of yen

Change*100,000

6.9%

Operating income

7,000

6.3%

Ordinary income

7,000

7.1%

Net income attributable to owners of parent

4,600

6.5%

Net sales

Note: Percent changes are year-on-year comparisons.
Earnings per share(Yen)

218.32

Note: The Company has completed common shares consolidation at the rate of 5 to 1, effective October 1, 2017. As aresult, the forecast of earnings per share for the fiscal year ending March 31, 2018 is effected by the shareconsolidation.

* Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Application of accounting methods used specifically for the preparation of quarterly consolidated financial
statements: None
(3) Changes in accounting policies, accounting estimates and restatements of revisions
1) Changes in accounting policies due to revisions of accounting standards, etc.: None
2) Changes in accounting policies other than 1: None
3) Changes in accounting estimates: None
4) Restatement of revisions: None2(4) Number of outstanding shares (common stock)1) Number of shares outstanding at the end of the period (including treasury shares)
As of December 31, 2017:

23,400,193

shares

As of March 31, 2017:

22,354,767

shares2) Number of treasury shares at the end of the period
As of December 31, 2017:

1,846,291

shares

As of March 31, 2017:

1,285,645

shares3) Average number of shares outstanding in each period
Nine months ended December 31, 2017:21,253,052

sharesNine months ended December 31, 2016:

21,069,954

sharesNote: The Company has completed common shares consolidation at the rate of 5 to 1, effective October 1, 2017.
As a result, the number of outstanding shares (common stock), the number of treasury shares at the end of period,
and the average number of shares outstanding are calculated assuming that the share consolidation was executedat the beginning of the previous fiscal year.

* Status of quarterly review procedure:This quarterly financial results are not subject to the quarterly review procedure in accordance with theFinancial Instruments and Exchange Act. The quarterly review procedure of consolidated financial statements
has not been completed at the time of disclosure.

*Appropriate use of financial forecasts, other special notes
This material contains forward-looking statements such as earnings forecast about Osaka Soda Co., Ltd. andits group companies (“Osaka Soda Group”). These forward-looking statements are based on the current
assumptions and beliefs of Osaka Soda Group in light of the information currently available to it, and containknown 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.

34. QUALITATIVE INFORMATION(1)Results of Operations
During the nine months ended December 31, 2017, Japan’s economy has continued to recover moderately asa trend against the background of improvement in the employment situation and corporate profits, although
the overseas outlook remains uncertain due to the policy management of the Donald Trump administrationand geopolitical risk.
Basic Chemical Products
Osaka Soda Group enhanced the cost competitiveness through efficient manufacturing and increased thesales price reflecting the price change of raw materials and fuels.
Functional Chemical Products
Osaka Soda Group actively performed overseas sales activities to expand market share of major products
such as synthetic rubber and synthetic resins, and focused to the launching new products such as acrylic
rubber at early stage.
Osaka Soda Group put the health-care-related business as a third pillar of profit in place. In Active
Pharmaceutical Ingredients and their Intermediates, new business were created and new projects werebrought contract manufacturing services utilizing special equipment to us. In Separation Media for in
Pharmaceutical Industry (Silica Gel for Liquid Chromatography), new customer development has been
implemented in Eastern Europe, China, and India. Furthermore, purchasing chromatography business from
Shiseido Company Limited in December 2017 resulted in the integration of chromatography manufacturing
and expansion of sales network.
Housing Facilities and Others
Osaka Soda Group strengthened profitability through continuous change of business portfolio.
Under the circumstance, net sales were ¥74,487 million, an increase of 7.8% compared to the same period offiscal 2016. Operating income was ¥5,623 million, which is the 5th consecutive quarterly profits, an increaseof 8.1% compared to the same period of fiscal 2016. Ordinary income was ¥6,143 million, an increase of 16.6%
compared to the same period of fiscal 2016. Net income attributable to owners of parent was ¥3,987 million,
an increase of 15.0% compared to the same period of fiscal 2016.
Basic Chemical Products
In Chlor-Alkali, net sales increased due to continued steady demand as well as a price increase in sales.
In Epichlorhydrin, net sales increased due to continued steady volume increase as well as an improvement ofoverseas market conditions affected by favorable market in Asia.
As a result, net sales in Basic Chemical Products were ¥32,865 million, an increase of 8.7% compared to thesame period of fiscal 2016.
Functional Chemical Products
In Epichlorhydrin Rubber, net sales increased due to recovery of domestic demand and the expansion ofvehicle application in Asia.
In Acrylic Rubber, net sales increased due to product adoption by customers.
In Diallyl Phthalate Resin, net sales increased due to continued steady growth in domestic sales as well as
export sales to Europe in UV printing inks.
In Allyl Ethers, net sales increased due to steady growth in export sales to USA and China, which were mainly
applied for silane coupling agents.
In Active Pharmaceutical Ingredients and their Intermediates, net sales increased in domestic and foreign
markets, due to the sales expansion of intermediates in antiviral drugs and drugs to treat insomnia in domestic

4

market and continued steady increase in new projects such as intermediates in diabetic in domestic market,and due to sale in cardiotonic intermediate import and sale in generic active pharmaceutical ingredients.
In Separation Media for in Pharmaceutical Industry (Silica Gel for Liquid Chromatography), application foranalysis and purification of active pharmaceutical ingredients continued to grow steadily as well as an increaseof sales to China in biopharmaceutical drugs, even though inventory adjustments caused by Europeancustomers.
As a result, net sales in Functional Chemical Products were ¥29,349 million, a decrease of 9.4% compared tothe same period of fiscal 2016.
Housing Facilities and Others
Net sales were ¥12,271 million, an increase of 2.1% compared to the same period of fiscal 2016, due to steadysales in household products.
(2) Financial Condition
AssetsCurrent assets were ¥67,979 million, an increase of 15.7% since March 31, 2017. The increase was due
primarily to an increase of ¥2,474 million in notes and accounts receivable-trade, an increase of ¥2,374 million
in electrically recorded monetary claims.
Noncurrent assets were ¥48,807 million, an increase of 14.1% since March 31, 2017. The increase was due
primarily to an increase of ¥3,763 million in investment securities.
As a result, Total assets were ¥116,787 million as of December 31, 2016, an increase of 15.1% since March31, 2017.
Liabilities
Current liabilities were ¥32,434 million, an increase of 3.3% since March 31, 2017. The increase was due
primarily to an increase of ¥2,414 million in notes and accounts payable-trade.
Noncurrent liabilities were ¥25,504 million, an increase of 46.7% since March 31, 2017. The increase wasdue primarily to an increase of ¥767 million in bonds with subscription rights to shares.
As a result, Total liabilities were ¥57,939 million as of December 31, 2017, an increase of 18.8% since March31, 2017.
Net assets
Net assets were ¥58,848 million as of December 31, 2017, an increase of 11.6% since March 31, 2017.
(3) Earnings Forecast
There are no revisions to the earnings forecast from the previous forecast announced in the "Consolidated
financial results for the year ended March 31, 2018, unaudited" dated May 9, 2017.

5

6.

CONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATED BALANCE SHEETS(Millions of yen)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Electrically 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
Machinery, equipment, and vehicles - Net
Other - Net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
OtherLess: Allowance for doubtful accounts
Total investment and other assets
Total noncurrent assets
Total assets

6

March 31,2017

December 31,
2017

11,03325,397
2,497
9,499
5,743
1,411
1,667
1,491
(3)
58,73913,27527,872
4,872
10,499
6,489
1,747
1,797
1,428
(3)
67,97911,33910,216
21,555

10,106
10,34323,450

769
437
1,207

1,206
523
1,729

18,927
1,641(568)
20,001
42,764
101,503

22,690945(8)23,62748,807116,787

CONSOLIDATED BALANCE SHEETS (Continued)(Millions of yen)

Liabilities
Current liabilities
Notes and accounts payable- trade
Short term loans payable
Current portion of long term loans payable
Income taxes payable
Provision for bonuses
Other current liabilities
Total current liabilities
Noncurrent liabilities
Bonds with subscription rights to sharesLong term loans payable
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
Unrealized gain 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 assets
Total net assets and liabilities

7

March 31,2017

December 31,
2017

13,339
8,880
2,160
1,311
712
4,987
31,39015,754
8,880
1,280
710
372
5,437
32,434

9,999
800
567
2,927
3,093
17,387
48,77817,606
592
2,988
4,317
25,50457,93910,882
9,399
27,964(1,670)46,576

12,07910,59630,726(3,290)50,1116,481(13)
24(342)6,149
52,725
101,503

9,009
530(309)
8,736
58,848116,787

CONSOLIDATED STATEMENTS OF INCOME(Millions of yen)

Nine Months Ended
December 31,December 31,
2016
2017
69,09074,48755,17959,95813,91014,528Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Bond issuance cost
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
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
Net income attributable to non-controlling interests
Net income attributable to owners of parent

8

8,709
5,201

8,905
5,623

21
318
52
393

8
354
277
46
687

48
259
20
328
5,267

98
32
35
167
6,143-

106
106

410
410
4,856

448
448
5,801

1,385
3
1,389
3,467
3,467

1,411
402
1,813
3,987
3,987

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(Millions of yen)

Net income
Other comprehensive income
Unrealized gain on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Re-measurements of defined benefit plans
Total
Comprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

9Nine Months Ended
December 31,
December 31,
2016
2017
3,467
3,987
917
89(52)
44999
4,466

2,528
19
6
33
2,587
6,574

4,466－

6,574－

7. Notes to the Consolidated Financial Statements(1) Going concern assumption: None
(2) Significant changes in the amount of shareholders’ equity: None
(3) Segment information
Nine months ended December 31, 2016

(Millions of yen)
Net sales

Basic Chemical Products
Functional Chemical Products
Housing Facilities and Others
Subtotal
Adjustments *1
TotalNotes 1:

Notes 2:Externalsales
30,242
26,82812,01969,090－69,090Intersegment sales
or reclassifications
1215
1,423
1,451
(1,451)－Total30,254
26,844
13,44370,541(1,451)
69,090

Basic Chemical Products
Functional Chemical Products
Housing Facilities and Others
Subtotal
Adjustments *1
TotalNotes 2:

1,063
4,686
143
5,893(691)5,201

Adjustments of segment income of ¥(691) million are corporate expenses not allocated toreportable segments. Corporate expenses are mainly expenses not attributable to areporting segment and related to fundamental research and development as well asadministrative departments.
Segment Income is reconciled with consolidated operating income.

Nine months ended December 31, 2017

Notes 1:

Segment
income *2(Millions of yen)
Net salesIntersegment sales
or reclassifications
713849869(869)－

External
sales
32,86529,34912,271
74,487－74,487

Total
32,87329,362
13,12075,356(869)74,487

Segment
income *2
1,864
4,403
77
6,344(721)
5,623

Adjustments of segment income of ¥(721) million are corporate expenses not allocated toreportable segments. Corporate expenses are mainly expenses not attributable to areporting segment and related to fundamental research and development as well as
administrative departments.
Segment Income is reconciled with consolidated operating income.

10