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.

August 8, 2023

Consolidated Financial Results
for the Three Months Ended June 30, 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 to file quarterly securities report:
August 9, 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 Three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Three 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%

June 30, 2023

23,193

(9.9)

2,807

(45.5)

3,504(40.8)

2,404(42.1)

June 30, 2022

25,738

20.1

5,149

68.4

5,921

70.9

4,149

57.5

Note: Comprehensive income

For the Three months ended June 30, 2023:
For the Three months ended June 30, 2022:

Basic earnings
per share
Three months ended

Diluted earnings
per share
Yen

June 30, 2023

¥4,544 million[0.2%]¥4,535 million [(177.7) %]

Yen

94.50

－

June 30, 2022
178.14159.87
Note: The amount of diluted earnings per share for the Three months ended June 30, 2023, 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

June 30, 2023

139,229

102,945

73.9

March 31, 2023

138,029

99,543

72.1

Reference:

EquityAs of June 30, 2023:
As of March 31, 2023:¥102,936 million¥99,535 million%

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024－

Fiscal year-end

Total

Yen

Yen

45.00

－

45.00

90.00

45.00

－

45.00

90.00

－

Fiscal year ending
March 31, 2024
(Forecast)

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated financial results 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

Operating profit%

Millions of yen

Ordinary profit% Millions of yen

Profit attributable toowners of parent% Millions of yen

First half year
51,000 (1.8)
3,600 (63.0)
4,100 (62.2)（cumulative）
Full year
105,000
0.8
10,000 (35.7)
11,100 (35.3)
Note: Revisions to the forecast of consolidated financial results most recently announced: None

Basic earnings
Per share

%

Yen

2,800

(62.7)

110.067,500(29.1)

294.81

* 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 June 30, 2023

26,732,017 shares

As of March 31, 2023

26,732,017 shares(ii) Number of treasury shares at the end of the period
As of June 30, 2023

1,291,570 shares

As of March 31, 2023

1,291,509 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Three months ended June 30, 2023

25,440,473 shares

Three months ended June 30, 2022

23,293,934 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 Three months ended June 30, 2023 (3)Analysis of Forward-looking Statement, Including Consolidated financial results Forecasts” on page 3 of theattached documents.

(Attached Documents)
INDEX
1. Qualitative Information Concerning Results for the Three months ended June 30, 2023
(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

-1-

4
6
8
8
8
9

1. Qualitative Information Concerning Results for the Three months ended June 30, 2023
(1) Analysis of Operating Results
For the first three months of the consolidated fiscal year, the Japanese economy continued to show signs ofrecovery as social 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 theimpact of factors such as rising raw material and fuel prices, rising commodity prices, the prolonging of thesituation in Ukraine, and the risk that a downturn of overseas economies amidst continued global monetary
tightening could put downward pressure on the domestic economy.
It is in this environment that the Group decided to postpone the announcement of the new medium-term
management plan consisting of three basic principles, the “continuous strengthening of our base in existing
businesses,” the “strengthening of new product creation capabilities,” and the “the promotion ofsustainability management,” due to the manufacturing equipment problems that occurred at our Mizushima
Plant on April 4, 2023. That said, there are no changes to the basic policy that the Company should befocusing on, so we will steadily execute concrete measures in line with that basic policy while doing our best
to restore the equipment as soon as possible.
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, the entire company has been working together to recover from manufacturing equipment problems
to ensure stable supply to customers. In the Functional chemicals business, despite declining demand for
major products, we were able to steadily increase the sales volume of Acrylic Rubber by developing newmarkets. In the Healthcare business, following the decision to construct new manufacturing facilities at the
Matsuyama Plant, it was also decided to construct new manufacturing facilities at the Amagasaki Plant as asecond phase of expansion in order to meet the growing demand for pharmaceutical purification materials fordiabetes treatments and the rapidly expanding obesity treatments.
In terms of the “strengthening of new product creation capabilities,” we will work to quickly bring to market
the next global niche-top products by focusing on next-generation storage battery materials such as ultrahigh ionic conductive polymers for all-solid batteries, which were selected as a Green Innovation Fund
Project by NEDO.
In terms of the “promotion of sustainability management,” as an appropriate response to Japan’s Corporate
Governance Code, in addition to taking steps to comply with TCFD recommendations and calculating GHG
emissions, we are continuing revision of the personnel system for managers which started last fiscal year and also
revised the personnel system for general employees in April of this year, all in an effort to “grow together with our
employees as a company” as set forth in our Vision Statement. Under the new personnel systems, we will work tofurther spread business reform activities, improve employee engagement, and nurture the next generation ofhuman resources.
Due in part to the manufacturing equipment problems at the Mizushima Plant (net sales: ¥1,700 million, operating
income: ¥2,100 million), net sales for the first three months of the consolidated fiscal year decreased 9.9% year on
year to ¥23,193 million. In terms of income, operating income decreased 45.5% year on year to ¥2,807 million,
ordinary income decreased 40.8% year on year to ¥3,504 million, and net income attributable to owners of parent
decreased 42.1% year on year to ¥2,404 million.
As the Healthcare business has been steadily growing as our third profitable business, starting from the first threemonths of the consolidated fiscal year we are changing our system to four reportable segments, namely, Basic
Chemicals, Functional Chemicals, Healthcare, and Trading and Others. Accordingly, in the following year-on-yearcomparisons, figures for the same period of the previous fiscal year have been reclassified to the post-change
segment classifications.
< Basic chemicals >Despite a decrease in the sales volumes of some products due to the manufacturing equipment problems at theMizushima Plant, net sales of Chlor-Alkali products increased due in part to a rise in product prices as a result of
increases in raw material and fuel prices. Net sales of Epichlorohydrin decreased due to a reduction in demand for
epoxy resin both in Japan and overseas, as well as sales adjustments resulting from the manufacturing equipment
problems. As a result of the above, net sales in the Basic chemicals business decreased 11.8% year on year to¥9,045 million.

-2-

< Functional chemicals >In the synthetic rubbers business, net sales of Epichlorohydrin Rubber decreased due to a decline in demand
for OA applications. Net sales of Acrylic Rubber increased, particularly to customers in Asia, as it was
adopted for new applications in Japan and overseas. Net sales of DAP resin decreased due to weak demandin Europe and East Asia and prolonged inventory adjustments in the United States. Net sales of Allyl Ethers
decreased due to lower demand for Silane coupling agents in Europe, the United States, and China,
particularly for paint applications. As a result of the above, net sales in the Functional chemicals businessdecreased 11.7% year on year to ¥6,483 million.
<Healthcare>
Net sales of pharmaceutical purification materials increased as demand steadily increased for applications indiabetes treatments in Europe, the Americas, and Asia. Net sales of active pharmaceutical ingredients (APIs) andtheir intermediates decreased due to a concentration of sales in the first three months of the previous fiscal year,
despite an increase in sales of oligonucleotide APIs and antiulcer drug intermediates, As a result of the above, net
sales in the Healthcare business decreased 10.1% year on year to ¥2,208 million, but the full-year results are
expected to be higher than the previous fiscal year.
<Trading and Others>
While net sales for consumer products increased thanks to strong sales, net sales decreased due to sluggish salesof electronic materials and automotive products, mainly glass fiber. As a result of the above, net sales in the
Trading and others business decreased 4.0% year on year to ¥5,454 million.
(2) Analysis of Financial Position(Assets)
Current assets were ¥88,797 million, a decrease of 0.9% since March 31, 2023. This was due primarily to adecrease of ¥5,000 million in securities. Noncurrent assets were ¥50,432 million, an increase of 4.2% since March
31, 2023. This was due primarily to an increase of ¥2,634 million in investment securities. As a result, total assets
at the end of the first three months of the consolidated accounting period were ¥139,229 million, an increase of
0.9% since March 31, 2023.
(Liabilities)
Current liabilities were ¥29,209 million, a decrease of 9.6% since March 31, 2023. This was due primarily to adecrease of ¥2,758 million in accrued income taxes and ¥466 million in provision for bonuses. Noncurrent
liabilities were ¥7,074 million, an increase of 14.6% since March 31, 2023. This was due primarily to an increaseof ¥1,022 million yen in deferred tax liabilities. As a result, liabilities at the end of the first three months of theconsolidated accounting period were ¥36,283 million, a decrease of 5.7% since March 31, 2023.
(Net assets)
Net assets at the end of the first three months of the consolidated accounting period were ¥102,945 million, an
increase of 3.4% since March 31, 2023. This was due primarily to increases of ¥1,259 million in retained earningsand ¥1,814 million in unrealized gains on other securities.
(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, 2024, announced on May
11, 2023. If there are any changes in the future, the Company will appropriately disclose information to that
effect.

-3-

2. Quarterly Consolidated Financial Statements and Notes to Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023
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, net
Machinery, equipment and vehicles, net
Land
Leased assets, net
Construction in progress
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-4-

As of June 30, 2023

12,844

14,79529,29028,488

3,826

6,481

23,998
9,516
2,602
3,965
3,599
△3
89,64018,998
10,150
2,700
6,196
987
△2
88,797

6,721
11,239
2,304
644
3,730
462
25,103

7,371
12,536
2,305
620
1,527
439
24,799

217
102
320
639

203
100
334
638

21,302
14
677
657
△5
22,64548,389138,029

23,936
14
394
670
△21
24,99450,432
139,229

(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Current portion of long-term borrowings
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-5-

As of June 30, 2023

14,397
7,172
3,585
928
58
6,168
32,31014,768
7,172
827
462
59
5,919
29,209

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

417
811
2,731
2,782
152
179
7,074
36,283

15,871
17,00962,741△3,811
91,812

15,871
17,00964,001△3,811
93,070

7,339

9,153

△101
676
△190

179
714
△182

7,723

9,865

8
99,543138,0299
102,945
139,229

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)Three months ended
June 30, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
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 profit
Extraordinary losses
Loss on retirement of non-current assets
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-6-

Three months ended
June 30, 2023

25,73817,142
8,596
3,446
5,149

23,193
16,955
6,237
3,430
2,807

2
308

3
346

1

1

492
2
64
871

297
－
99
747

20
70
9
99
5,921

28
－
22
50
3,504

40
40
5,881
1,481
249
1,731
4,149
△0
4,149

40
40
3,463
695
365
1,060
2,402
△1
2,404

Consolidated statements of Comprehensive Income(Millions of yen)Three months ended
June 30, 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-7-

Three months ended
June 30, 2023

4,149

2,402

31

1,814

85
247

281
36

8

7

13

2

385
4,535

2,142
4,544

4,533

4,545

1

△1

(3) Notes to Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable(Notes on Major Changes in Shareholders’ Equity)
Not applicable-8-

(Segment Information and Other Items)

The Three months ended June 30, 2022 (from April 1, 2022 to June 30, 2022)(Millions of yen)Basicchemicals

Functional
chemicals

Healthcare

Trading
and Others

Total

Adjustments*1

Consolidated*2

Net sales
Japan
8,420
1,887
1,227
4,686
16,222
－
China
7
1,972
349
708
3,038
Asia
1,505
1,468
385
266
3,625
－
Europe
148
1,346
223
0
1,717
－
Others
179
668
270
16
1,135
－
Revenue fromContracts with
10,260
7,342
2,456
5,679
25,738－Customers
Other Revenue
－
－
－
－
－
－
External sales
10,260
7,342
2,456
5,679
25,738－Intersegment
sales or
0
370
1
1,155
1,527
(1,527)
reclassifications
Total
10,260
7,713
2,457
6,834
27,266(1,527)
Segment income
2,159
1,984
1,086
234
5,464
(314)
Notes:(1) Adjustments of segment income of ¥ (314) million are corporate expenses not allocated to reportablesegments. Most of above-mentioned corporate expenses are not attributable to a reporting segment
and related to fundamental research and development.
(2) Segment income is adjusted to operating income of consolidated statement of income.

-9-

16,222
3,038
3,625
1,717
1,135
25,738－25,738－25,7385,149

The Three months ended June 30, 2023 (from April 1, 2023 to June 30, 2023)(Millions of yen)Basicchemicals

Functional
chemicals

Healthcare

Trading
and Others

Total

Adjustments*1

Consolidated*2

Net sales
Japan
8,759
1,933
1,069
4,675
16,43816,438
－
China
1,929
204
447
2,581
2,581
－
－
Asia
185
1,256
194
260
1,896
1,896
－
Europe
100
639
521
66
1,328
1,328
－
Others
724
219
4
948
948
－
－
Revenue fromContracts
9,045
6,483
2,208
5,454
23,19323,193－withCustomers
Other Revenue
－
－
－
－
－
－
－
External sales
9,045
6,483
2,208
5,454
23,19323,193－
Intersegment
sales or
0
275
1
704
981
(981)
－
reclassifications
Total
9,045
6,759
2,209
6,159
24,174(981)
23,193
Segment income
171
1,128
1,352
443
3,095
(288)
2,807
Notes:(1)
Adjustments of segment income of ¥ (288) 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.
(2)
Segment income is adjusted to operating income of consolidated statement of income.
Changes in Reportable Segments(Changes in Reportable Segment Classification)
Starting from the first three months of the accounting period, the Healthcare business, which was previously
included in the Functional Chemicals segment, has been spun off as its own new segment in line with businessexpansion. In addition, in order to better understand the actual state of business performance, reportable segments
have been changed from the three categories of Basic Chemicals, Functional Chemicals, and Housing Facilities
and Others, to the four categories of Basic Chemicals, Functional Chemicals, Healthcare, and Trading and Others.
Furthermore, in order to better evaluate and manage the performance of each reportable segment, we have revised
the allocation method of common expenses and changed the calculation method of profit or loss for the reportablesegments. The segment information for the first three months of the pervious consolidated fiscal year is disclosed
based on the post-change classification of the reportable segments.

- 10 -