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.

May 11, 2023

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2023
(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, Executive Officer, General Manager, Administration Division
Telephone:+81-6-6110-1560
Scheduled date of annual general meeting of shareholders:June 29, 2023
Scheduled date to commence dividend payments:
June 12, 2023
Scheduled date to file annual securities report:
June 30, 2023-Preparation of supplementary material on financial results:
Yes
Holding of financial results briefing:
Yes(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 to March 31, 2023)(1) Consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Mar 31,2023

104,208

18.3

15,55725.4

17,16427.8

10,570

12.0

Mar 31,2022

88,084－

12,401

48.7

13,435

52.0

9,442

56.1

Note: Comprehensive income

For the fiscal year ended Mar 31,2023:
For the fiscal year ended Mar 31,2022:

Basic earnings
per share
Fiscal year ended

Diluted earnings
per shareYen¥11,267 million¥8,208 million

Return on equity

Yen

37.3 %(22.7) %Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales

%

%

%

Mar 31,2023

428.43

－

11.5

12.8

14.9

Mar 31,2022

404.73363.53

11.7

10.8

14.1

Reference:

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended Mar 31,2023:¥(12) million
For the fiscal year ended Mar 31,2022:¥48 million
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 fiscal year ended Mar 31, 2023 represent amounts after the application of thesaid 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 Mar 31, 2023, is not provided because there are no
dilutive shares.

(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

Mar 31,2023

138,029

99,54372.1

3,912.48

Mar 31,2022

129,159

83,89664.9

3,594.69

Reference:

EquityAs of Mar 31,2023:
As of Mar 31,2022:¥99,535 million¥83,872 million

1

%

Yen

(3) Consolidated cash flows
Cash flows fromoperating activities
Fiscal year ended

Cash flows frominvesting activities

Cash and cash
equivalents at end of
periodCash flows fromfinancing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

Mar 31,2023

9,354(5,380)(4,596)36,843

Mar 31,2022

13,378(6,961)(1,646)37,016

2. Cash dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end
Fiscal year ended
Mar 31,2022
Fiscal year ended
Mar 31,2023

Fiscalyear-end

Total

Yen

Yen

Yen

Yen

－

35.00

－

45.00

80.00

－

45.00

－

45.00

90.00

－

45.00

－

45.00

90.00

Ratio of
Payout ratio dividends to(Consolidated) net assets(Consolidated)

Total cash
dividends(Total)Yen Millions of yen

%

%

1,866

19.8

2.3

2,311

21.0

2.4

Fiscal year ending

Mar 31,2024(Forecast)

30.5

3. Consolidated Earnings Forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes.)
Net sales
Millions of yen

First half year
(cumulative)
Full year

Operating profit% Millions of yen

Profit attributable toowners of parent

Ordinary profit% Millions of yen% Millions of yen

Basic earnings
per share%Yen

51,000 (1.8)

3,600 (63.0)

4,100 (62.2)

2,800 (62.7)

110.06

105,000

10,000 (35.7)

11,100 (35.3)

7,500 (29.1)

294.81

0.8*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): Yes
Included: Elite Advanced Polymers Inc.
(2) 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
(3) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of Mar 31,2023

26,732,017 shares

As of Mar 31,2022

26,732,017 shares(ii) Number of treasury shares at the end of the period
As of Mar 31,2023

1,291,509 shares

As of Mar 31,2022

3,399,626 shares(iii) Average number of shares outstanding during the period
Fiscal year ended Mar 31,2023

24,673,479 sharesFiscal year ended Mar 31,2022

23,329,992 shares

2[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended Mar 31, 2023 (from Apr 1, 2022 to Mar 31, 2023)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended

Operating profit

Ordinary profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Mar 31,2023

74,222

16.2

12,75624.1

14,344

27.9

8,612

(2.0)

Mar 31,2022

63,881－

10,27746.2

11,216

51.6

8,790

85.5

Basic earnings
per share
Fiscal year ended

Diluted earnings
per share
Yen

Mar 31,2023

Yen－

349.05

Mar 31,2022
376.79338.43Note1: 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 fiscal year ended Mar 31, 2022 represent amounts after the application of thesaid 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 Mar 31, 2023, is not provided because there are no
dilutive shares.

(2) Non-consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Net assets per share

Millions of yen

Millions of yen

Mar 31,2023

116,390

83,99472.1

3,301.60

Mar 31,2022

110,864

70,454

63.5

3,019.59

Reference:

EquityAs of Mar 31,2023:
As of Mar 31,2022:%

Yen¥83,994 million¥70,454 million* Financial results reports are exempt from audit 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. Overview of Operating Results, etc. (4) Future Outlook” on page 6 of the attached materials
for the assumptions used in business forecasts.

3

(Attached Documents)
INDEX
1. Information Concerning Results for the fiscal year ended Mar 31, 2023
(1) Overview of Operating Results(2) Overview of Financial Position(3) Overview of Cash Flows(4) Future outlook of Forward-looking Statement, Including Consolidated financial results Forecasts

5
5
6
6
6

2. Basic Approach to the Selection of Accounting Standards

7

3. Consolidated Financial Statements and Notes to Consolidated Financial Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(3) Consolidated Statements of Changes in Net Assets(4) Consolidated Statements of Cash Flows(5) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)(Segment Information and Other Items)(Per Share Information)(Significant event after the reporting period)

8
8
10
12
14
16
16
16
19
19

4

1. Information Concerning Results for the Nine months ended Mar 31, 2023
(1) Overview of Operating Results
During the fiscal year ended March 31, 2023, the Japanese economy continued to show signs of recovery associal and economic activities moved toward normalization in line with the easing of restrictions on activities
imposed as a result of COVID-19. Circumstances remained difficult, however, owing to the impact of factors
such as supply constraints and rising raw material and fuel prices, as well as the prolonging of the situationin 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 positioned the Basic chemicals business, Functional
chemicals business, and Healthcare Business as our three core businesses and pursued strategies to makethese businesses more resilient. In the Basic chemicals business, we focused on implementing price revisions
in response to rising raw material and fuel prices, while also engaging in replacement investment aimed atenhancing production efficiency, and cost reductions. In the Functional chemicals business, we further
promoted the expansion of sales of Allyl Ethers, for which we strengthened our production systems in theprevious fiscal year, enabling us to respond to global demand growth. In the Healthcare business, we
expanded our production capacity by making capital investments to respond to strong demand forpharmaceutical purification materials, as well as active pharmaceutical ingredients (APIs) and theirintermediates. In relation to the "promotion of market-in-type development," the development of ultra-highionic conductive polymers for all-solid batteries, which the Company is focusing on, was selected as a Green
Innovation Fund Project by NEDO, and we are promoting this project in anticipation of its implementation insociety in the future. In terms of our “efforts to achieve the SDGs,” the Sustainability Committee began its
activities in October 2022, and we promoted efforts to achieve the KPIs we have set, particularly in the areasof the environment, human resources, and governance. In terms of “reforming corporate culture andorganizational culture,” under our new Group Mission Statement, we promoted reforms to our personnel
systems through business reform activities, as well as the further enhancement of productivity, including
activities to overhaul our core systems aimed at improving operational efficiency.
As a result of the above, net sales for the fiscal year ended March 31, 2023, increased 18.3% year on year to¥104,208 million. In terms of income, operating income increased 25.4% year on year to ¥15,557 million,
ordinary income increased 27.8% to ¥17,164 million, and net income attributable to owners of the parent
increased 12.0% to ¥10,570 million, meaning that the Company recorded its highest ever results at each levelof profit in the fiscal year ended March 31, 2023.
An overview of conditions in each segment is as follows.
< Basic chemicals >In Chlor-Alkali, the Company made price revisions in line with rising raw material and fuel prices, particularly in
relation to Caustic Soda and Caustic Potash, resulting in an increase in net sales.
In Epichlorohydrin, net sales increased thanks partly to good market conditions overseas in the first half of the
fiscal year, as well as price revisions associated with rising raw material and fuel prices and the impact of foreignexchange.
As a result of the above, net sales in the Basic chemicals business increased 19.4% year on year to ¥44,122
million.
< Functional chemicals >In the synthetic rubber business, net sales of Epichlorohydrin Rubber increased as demand related to addressing
environmental regulations grew in India. Net sales of Acrylic Rubber increased as it was adopted for new
applications in Japan and overseas, and sales grew, particularly to customers in Asia.
Despite an increase in sales, particularly for insulating varnish applications in China, net sales of DAP resin
decreased as a result of the impact of inventory adjustments in the US, where logistics disruption receded going
into the second half of the fiscal year.
5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, the US, and China, as well as the impact of foreignexchange.
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 line withgreater sales of intermediates for treatments for diabetes complications, intermediates for insomnia treatments,
and APIs and intermediates for dementia treatments.
As a result of the above, net sales in the Functional chemicals business increased 15.8% year on year to ¥53,108
million.
< Housing facilities and others >Net sales in the Housing facilities and others business increased 32.6% year on year to ¥6,977 million as a resultof robust sales of Housing Facilities.
(2) Overview of Financial Position(Assets)
Current assets were ¥89,640 million, an increase of 9.1% since March 31, 2022. The increase was due
primarily to an increase of ¥3,499 million in securities and ¥2,369 million in notes and accounts receivabletrade, and contract assets.
Non-current assets were ¥48,389 million, an increase of 2.9% since March 31, 2022. The increase was due
primarily to an increase of ¥1,508 million in property, plant and equipment.
As a result, total assets were ¥138,029 million, an increase of 6.9% since March 31, 2022.
(Liabilities)
Current liabilities were ¥32,310 million, a decrease of 18.9% since March 31, 2022. The decrease was due
primarily to a decrease of ¥8,733 million in current portion of bonds with share acquisition rights.
Noncurrent liabilities were ¥6,175 million, an increase of 14.1% since March 31, 2022. The increase wasdue to increases of ¥434 million in long-term borrowings and ¥359 million in deferred tax liabilities.
As a result, total liabilities were ¥38,485 million, a decrease of 15.0% since March 31, 2022.
(Net assets)
Net assets were ¥99,543 million, an increase of 18.7% since March 31, 2022. The increase was due
primarily to an increase of ¥8,486 million in retained earnings, ¥2,618 million in capital surplus and adecrease of ¥3,847 million in treasury shares.

(3) Overview of Cash Flows
Cash and cash equivalents as of March 31, 2023, were ¥36,843 million, a decrease of ¥173 million since
March 31, 2022. The status of each type of cash flow during the fiscal year ended March 31, 2023, and themain contributing factors were as follows.
(Cash flow from operating activities)
Net cash provided by operating activities amounted to ¥9,354 million. This was due primarily to income
before income taxes of ¥16,018 million, income taxes paid of ¥4,863 million and depreciation of ¥3,635
million.
(Cash flow from investing activities)
Net cash used in investing activities amounted to ¥5,380 million. This was due primarily to the purchase ofproperty, plant and equipment of ¥4,773 million.
(Cash flow from financing activities)
Net cash used in financing activities amounted to ¥4,596 million. This was due primarily to the purchaseof treasury shares of ¥ 2,236 million and dividends paid of ¥2,216 million.
(4) Future outlook of Forward-looking Statement, Including Consolidated financial results Forecasts
With regards to the future economic outlook, it is expected that the economy will continue to pick up, but difficult
circumstances are forecast to continue amid concerns surrounding factors such as further rises in raw material andfuel prices and increases in prices in general, as well as the downward risk to the economy from global monetary
tightening.
6Under these circumstances, the Group had finished formulating a new medium-term management plan consistingof three basic principles, the “continuous strengthening of our base in existing businesses,” the “strengthening of
new product creation capabilities,” and the “the promotion of sustainability management,” while working toward
greater penetration of our business reform activities. We were about to start this plan, when manufacturing
equipment problems occurred at our Mizushima Plant on April 4, 2023. As a result, we will now delay theannouncement of the new medium-term management plan. However, there are no changes to the basic policy that
the Company should be focusing on, so we will steadily execute concrete measures in line with that basic policy,
while making concerted efforts to quickly restore the affected equipment.
In terms of the “continuous strengthening of our base in existing businesses,” we will work to enhance ourbusiness base by generating stable cash flows and actively investing in growth areas. In the Basic chemicals
business, based on the recent manufacturing equipment problems, we will actively focus on stronger equipment
management, as well as replacement and maintenance investment, to enable us to maintain full production andstable operation at our existing facilities. In the Functional chemicals business, we will work to cultivate themarket for global niche-top products such as synthetic resin and synthetic rubber and develop new applications forsuch products. For Acrylic Rubber and non-phthalate allyl resin, we will take steps to scale up these businesses
through new market development. In the Healthcare business, we will invest in expanding production capacity
regarding pharmaceutical purification materials to ensure we capture future increases in demand for diabetes
treatments and rapidly growing demand for obesity treatments, while in active pharmaceutical ingredients (APIs)
and their intermediates, following the 100% utilization of facilities newly established in March 2023, we willconsider capital investment aimed at a new full-fledged entry into the market for highly potent pharmaceuticals.
We plan to invest more than ¥8.0 billion over the next three years, to establish a base for this business as our third
highly profitable business.
In terms of the “strengthening of new product creation capabilities,” we will take steps to further strengthen ourcapabilities focused particularly on four areas, “Environment and Energy,” “Mobility,” “Information andCommunication,” and “Health and Healthcare,” as we work to quickly bring to market the next global niche-top
products. In the area of “Environment and Energy,” we will further accelerate the development of next-generation
storage battery materials such as unique polyether aimed at the mass production of semi-solid state batteries andultra-high ionic conductive polymers for all-solid batteries, which was selected as a Green Innovation Fund
Project by NEDO. In the area of “Mobility,” we will work to quickly bring to market new grades of Acrylic
Rubber and new silane coupling agents, while also focusing on the development of materials for the “new normal”
in automobiles, such as polymer alloys and sensors and actuators, to support the future shift to electric and selfdriving vehicles. In the area of “Information and Communication,” we will continue to focus on the developmentof silver nanoparticles as bonding agents with high thermal conductivity for power semiconductors, for whichsignificant demand is expected in the future, as well as materials related to semiconductors such as carbon
nanotubes for next-generation semiconductors and electric elements. In the area of “Health and Healthcare,” wewill promote the development of polymer gels as new purification materials for biopharmaceuticals suited to drug
modalities, while also developing new anti-aging materials that contribute to extending healthy life expectancy,such as NMN-producing lactic acid bacteria.
In terms of the “promotion of sustainability management,” under our basic policy on sustainability of aiming to“combine contributing to the realization of a sustainable society through our business activities with enhancing
our corporate value,” the Sustainability Committee will play a central role as we implement measures toappropriately respond to Japan’s Corporate Governance Code, including addressing the TCFD recommendations,calculating GHG emissions, formulating and executing measures to mitigate our environmental impact, thepromotion of health and productivity management, and human resources development through the penetration ofbusiness reform activities as part of our investment in human capital. In addition, we will also endeavor to deepen
dialogue with investors and all other stakeholders, by enhancing information disclosure through the preparation of
integrated reports, etc., and thereby further increase corporate value.
With regards to forecasts of financial results for the next fiscal year, after considering the impact of manufacturing
equipment problems at the Mizushima Plant, the Company expects net sales of ¥105.0 billion, operating incomeof ¥10.0 billion, ordinary income of ¥11.1 billion, and net income attributable to owners of the parent of ¥7.5
billion. For details, please refer to “Notice Concerning the Possible Loss Arising from Business Activities(Update to Disclosed Matters),” which was released today (May 11, 2023).
2. Basic Approach to the Selection of Accounting Standards
Osaka Soda Group prepares the consolidated financial statements in accordance with Japanese generally
accepted accounting principles, taking into accounts the comparability between periods and companies. In
adopting International Financial Reporting Standards, Osaka Soda Group intends to take appropriate
measures, examining internal and external situation.
7

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, andcontract assets
Electronically recorded monetary claims operating
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles,net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

8

As of March 31, 2023

16,517

12,84426,92029,290

3,434

3,826

20,499
7,703
2,191
2,628
2,326
(79)
82,142

23,998
9,516
2,602
3,965
3,599
(3)
89,64017,761(11,092)
6,669
64,308(52,702)18,403(11,681)
6,721
66,586(55,346)

11,605

11,239

2,305
1,027
(353)
674
1,861
4,347
(3,868)478
23,594

2,304
1,057
(413)
644
3,730
4,527
(4,064)462
25,103

315
155
79
550

217
102
320
639

21,677
18
450
732
(7)
22,87147,016
129,159

21,302
14
677
657
(5)
22,64548,389138,029

(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Current portion of long-term borrowings
Current portion of bonds with shareacquisition rights
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

9

As of March 31, 2023

14,229
7,172
2,990
968
－

14,397
7,172
3,585
928
58

8,733

－

5,756
39,8506,168
32,310

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

434
838
1,709
2,826
152
214
6,175
38,485

15,871
14,391
54,255(7,658)76,85915,871
17,00962,741(3,811)
91,812

6,833

7,339

64
212
(97)

(101)
676
(190)

7,012

7,723

23
83,896
129,159

8
99,543138,029

(2) Consolidated Statements of Income and Statements of Comprehensive Income
1) Consolidated Statements of Income(Millions of yen)
Fiscal year ended
March 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Insurance claim income
Share of profit of entities accounted for using
equity method
Foreign exchange gains
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using
equity method
Loss on abandonment of inventories
Loss on tax purpose reduction entry of noncurrent assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Total extraordinary income

Fiscal year ended
March 31, 2023

88,084
61,99326,09013,68812,401

104,208
73,74030,467
14,91015,557

10
482
151

15
580
573

48

－

304
－
157
1,156

469
180
300
2,119

88

109

－

12

－

253

－

55

33
122
13,43580
511
17,164

－
309
309

245
176
421

333

217

－

297

－
333
13,412
4,141
(171)
3,970
9,441
(0)
9,442

1,053
1,568
16,018
5,433
33
5,466
10,552(18)
10,570Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of shares of subsidiaries andassociates
Impairment losses
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent

102) Consolidated statements of Comprehensive Income(Millions of yen)
Fiscal year ended
March 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

11

Fiscal year ended
March 31, 2023
9,441

10,552(1,459)

505

15
205

(166)
456

(17)

(92)

22

11

(1,233)
8,208

715
11,267

8,207

11,2810(13)

(3) Consolidated Statements of Changes in Net Assets
FY2022(Fiscal year ended March 31, 2022)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCapital surplus

Retained earnings

15,87014,3881

1

Total shareholders'

Treasury shares

equity△7,66946,387

68,977

Changes during period
Issuanceofnewshares2

Dividends of surplus(1,574)(1,574)

Profit attributable toowners of parent

9,442

9,442

Purchase of treasury
shares
Disposal of treasury
shares

1

(1)

(1)

12

14

Change in scope of
consolidation
Net changes in items
other
than
shareholders' equity
Total changes during
periodBalance

at

end

of

period

1

2

7,867

11

7,882

15,871

14,391

54,255(7,658)76,859

Accumulated other comprehensive income
Valuationdifference on

Deferred gains oravailable-for-sale losses on hedges
securities
Balance at beginning of
period8,292

48

Foreign currency Remeasurements
translationof defined benefit
adjustment
(13)

plans
(80)

Total accumulated
Non-controlling
otherinterests
comprehensive
income8,247

7Total net assets

77,232

Changes during period
Issuance
sharesofnew2(1,574)

Dividends of surplus
Profit attributable to9,442

owners of parent
Purchase of treasury
shares(1)

Disposal of treasury

14

sharesChange in scope of
consolidation
Net changes in items
other
than
shareholders' equity
Total changes during
periodBalanceperiod

at

end

of

(1,458)

15

226

(17)

(1,234)16△1,218(1,458)

15

226

(17)

(1,234)

16

6,663

6,833

64

212

(97)

7,012

23

83,89612

FY2023(Fiscal year ended March 31, 2023)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCapital surplus

15,871Retained earnings

14,391

Treasury shares

Total shareholders'equity(7,658)54,25576,859Changes during period
IssuanceofnewsharesDividends of surplus(2,217)(2,217)

Profit attributable toowners of parent

10,570

10,570Purchase of treasury
shares
Disposal of treasury
shares2,618

Change in scope of(2,236)(2,236)

6,084

8,702

132

consolidation132

Net changes in items
other
than
shareholders' equity
Total changes during
periodBalance

at

end

of

period15,871

2,618

8,486

3,847

14,952

17,00962,741(3,811)

91,812

Accumulated other comprehensive income
Valuationdifference on

Deferred gains oravailable-for-sale losses on hedges
securities
Balance at beginning of
period6,833

64Foreign currency Remeasurements
translationof defined benefit
adjustment
212

plans
(97)

Total accumulated
Non-controlling
otherinterests
comprehensive
income7,012

23

Total net assets

83,896

Changes during period
Issuance
sharesofnew(2,217)

Dividends of surplus
Profit attributable to10,570owners of parent
Purchase of treasury
shares(2,236)

Disposal of treasury

8,702

sharesChange in scope of
consolidation132

Net changes in items
other
than
shareholders' equity
Total changes during
periodBalanceperiod

at

end

of

505

(166)

463

(92)

710

(15)

695

505

(166)

463

(92)

710

(15)

15,647

7,339

(101)

676

(190)

7,723

8

99,54313

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit
liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss on retirement of non-current assets
Loss (gain) on sale of non-current assets
Loss on tax purpose reduction entry of noncurrent assets
Impairment losses
Loss (gain) on sale of short-term and long-term
investment securities
Loss (gain) on sale of shares of subsidiaries
and associates
Decrease (increase) in notes and accounts
receivable - trade and contract assets
Decrease (increase) in inventories
Increase (decrease) in trade payables
Insurance claim income
Subsidy income
Increase (decrease) in accrued consumption
taxes
Share of loss (profit) of entities accounted forusing equity method
Other, net
SubtotalInterest and dividends received
Interest paid
Proceeds from insurance income
Income taxes paid
Net cash provided by (used in) operating
activities

14

Fiscal year ended
March 31, 2023

13,4123,731
182

16,018
3,635
98

8

(78)

83

(39)

28

92

(493)
88
(107)
333
－

(595)
109
(80)
217
(245)

－

55

－

1,053

(309)

(176)

－

297

(86)

(2,491)(2,049)
1,013
(151)
－

(3,237)
(194)
(573)
(180)

(43)

138

(48)

12

(179)
15,413493(88)
151(2,592)(682)
13,152
601
(109)
573
(4,863)

13,3789,354

(Millions of yen)
Fiscal year ended
March 31, 2022
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Subsidies received
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Redemption of bonds with share acquisitionrightsRepayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) 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
Increase in cash and cash equivalents resulting
from inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period

15

Fiscal year ended
March 31, 2023

(5,685)(4,773)

－

300

(66)
(1,172)
348
－
(386)

(336)
(417)
197
180
(531)

(6,961)(5,380)

－

(41)

－
(1)
(1,574)(69)(36)(2,236)(2,216)(66)(1,646)(4,596)

310

428

5,080

(194)

31,93637,016－21

37,01636,843

(5) Notes to Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable(Segment Information and Other Items)
1.Overview of Reportable segment
Reportable segments of the Osaka Soda group are those for which separate financial information isavailable and the Board of Directors review regularly to make management resource allocation decisions
and evaluate performance. Based on the versatility of manufacturing and service and the similarity ofmarkets, the Osaka Soda group divides its business into three business segments, including “Basicchemicals”, “functional Chemicals” and “Housing facilities and others”“Basic Chemicals” manufactures and sells chlor-alkali products, epichlorohydrin, allyl chloride, etc.
"Functional chemicals" manufactures and sells allyl ethers, epichlorohydrin rubber, DAP resin, modifiersfor energy-saving tires, pharmaceutical refining materials, active pharmaceutical ingredients andintermediates, electrodes, etc.
“Housing equipment, etc.” manufactures and sells DAP processing materials and housing-related products
and construction of chemical plants and environmental protection facilities etc.
2. Calculation method for Net sales, Income, Assets and Other items of each reportable segment
The method of accounting for reported business segments is the same as described in “Basis of preparationof consolidated financial statements”. Intersegment sales or reclassifications are based on current market
prices. Reportable segment income is based on operating income.

16

3. Information concerning Net sales, Income, Assets and Other items of each reporting segment

The previous fiscal year ended Mar 31, 2022 (from April 1, 2021 to Mar 31, 2022)(Millions of yen)Basicchemicals

Functional
chemicals

Housingfacilities
and others

Total

Adjustments*1

Consolidated*2

Net salesJapan
29,932
21,1095,234
56,27556,275－Asia
5,038
17,431
27
22,49822,498－Europe
761
5,090
5,851
5,851
－
－
Others
1,210
2,248
3,458
3,458
－
－
Revenue fromContracts with
36,94245,8795,261
88,08488,084－
Customers
Other Revenue
－
－
－
－
－
－
External sales
36,94245,8795,261
88,08488,084－
Intersegment
sales or
147
626
2,122
2,895
(2,895)－
reclassifications
Total
37,08946,505
7,384
90,980(2,895)88,084
Segment income
4,658
8,684
332
13,674(1,272)
12,401
Segment assets
40,57350,238
4,472
95,28333,876
129,159
Other items
Depreciation
2,080
1,229
52
3,362
368
3,731
Amortization of
4
56
－
61
121
182
goodwill
Investment toentities accounted
－
1,189
－
1,189
－
1,189
for using equity
methodIncrease of
5,074
1,482
41
6,599
191
6,790
current andnoncurrent assets
Notes1: Adjustments are as follows.
(1)
Adjustments of segment income of ¥(1,272) 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)
Adjustments of segment assets of ¥33,876 million are corporate assets of ¥33,814 million, which are notallocated to reportable segments. Above-mentioned corporate assets are mainly parent company’s assets,
which are surplus operating funds (cash and short-term securities), long term investment capital(investment securities, etc.), and related to administrative, research and development departments.
(3)
Adjustments of Increase of current and noncurrent assets of ¥191 million are for administrative
department and research and development department investment.
Notes2: Segment income is adjusted to operating income of consolidated statement of income.
Notes3: Calculation method for Net sales, Income, Assets and Other items of each reportable segment
The method of accounting for reported business segments is the same as described in “Basis of preparationof consolidated financial statements”. Intersegment sales or reclassifications are based on current market
prices.

17

The fiscal year ended Mar 31, 2023 (from April 1, 2022 to Mar 31, 2023)(Millions of yen)Basicchemicals

Functional
chemicals

Housingfacilities
and others

Total

Adjustments*1

Consolidated*2

Net salesJapan
36,787
20,7786,966
64,53264,532－
Asia
5,235
20,93810
26,18526,185－
Europe
702
6,296
6,999
6,999
－
－
Others
1,396
5,094
6,491
6,491
－
－
44,122
Revenue from53,108
6,977
104,208
104,208
Contracts with－
Customers
Other Revenue
－
－
－
－
－
－
External sales
44,122
53,108
6,977
104,208
104,208－
Intersegment
120
793
1,033
1,948
(1,948)－sales orreclassifications
Total
44,24353,902
8,010
106,156(1,948)104,208
Segment income
4,753
11,554594
16,902(1,345)
15,557
Segment assets
45,23649,328
7,422
101,988
36,041138,029
Other items
Depreciation
1,921
1,323
50
3,296
339
3,635
Amortization of
56
－
57
40
98
0
goodwill
Investment toentities accounted
－
297
－
297
－
297
for using equity
methodIncrease ofcurrent and
1,906
2,996
43
4,946
407
5,353
noncurrent assets
Notes1: Adjustments are as follows.
(1)
Adjustments of segment income of ¥(1,345) 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)
Adjustments of segment assets of ¥36,041 million are corporate assets of ¥36,164 million, which are notallocated to reportable segments. Above-mentioned corporate assets are mainly parent company’s assets,
which are surplus operating funds (cash and short-term securities), long term investment capital(investment securities, etc.), and related to administrative, research and development departments.
(3)
Adjustments of Increase of current and noncurrent assets of ¥407 million are for administrative
department and research and development department investment.
Notes2: Segment income is adjusted to operating income of consolidated statement of income.
Notes3: Calculation method for Net sales, Income, Assets and Other items of each reportable segment
The method of accounting for reported business segments is the same as described in “Basis of preparationof consolidated financial statements”. Intersegment sales or reclassifications are based on current market
prices.

18

(Per Share Information)
Fiscal year ended
Net assets per share (Yen)
Earnings per share (Yen)
Diluted earnings per share (Yen)

March 31, 2022
3,594.69

March 31, 2023
3,912.48

404.73363.53428.43－Note1: Basis for calculation of earnings per share and diluted earnings per share is as follows.
Fiscal year ended
March 31, 2022

March 31, 2023

9,442
－
9,442
23,32910,570－
10,57024,673－
2,664(2,664)

－
－
－

－

－

Earnings per share
Net income (Millions of yen)Amount not attributable to owners of common stock (Millions of yen)
Net income related to owner of common stock (Millions of yen)
Weighted average number of common stock (Thousands of shares)
Diluted earnings per share
Adjustment to net income (Millions of yen)
Increase of common stock (Thousands of shares)(Bonds with subscription rights to shares) (Thousands of shares)
Details of shares not included in calculation of fully diluted net income
per share due to non-dilutive effectNote2: Basis for calculation of Net assets is as follows.
Fiscal year ended
Amount of Net assets (Millions of yen)Amount deducted from Net assets (Millions of yen)
Net assets related to owner of common stock (Millions of yen)
Number of common stocks for calculation of Net assets per share(Thousands of shares)

March 31, 2022
83,896

March 31, 2023
99,54323
83,872

8
99,53523,33225,440(Significant event after the reporting period)
Partial suspension of production facilities at our Mizushima Plant
Due to malfunctions found in the allyl chloride manufacturing equipment at our Mizushima Plant (Kurashiki
City, Okayama), we suspended operation of the manufacturing equipment on April 4, 2023. Production waspartially resumed from May 8, 2023, but we have not yet fully recovered.

19