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 10, 2024

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2024
(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 27, 2024
Scheduled date to commence dividend payments:
June 10, 2024
Scheduled date to file annual securities report:
June 28, 2024
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, 2024 (from April 1, 2023, to March 31, 2024)(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 31,2024

94,557(9.3)

10,492(32.6)

12,008(30.0)

7,650(27.6)

Mar 31,2023

104,208

18.3

15,55725.4

17,16427.8

10,57012.0

Note: Comprehensive income

For the fiscal year ended Mar 31,2024:
For the fiscal year ended Mar 31,2023:

Basic earnings
per share
Fiscal year ended

Diluted earnings
per share

Yen¥13,299 million¥11,267 million

Return on equity

Yen

18.0 %
37.3 %

Ratio of ordinary
profit to total assets

Ratio of operating
profit to net sales

%

%

%

Mar 31,2024

300.84

－

7.3

8.3

11.1

Mar 31,2023

428.43

－

11.5

12.8

14.9

Reference:

Share of profit (loss) of entities accounted for using equity method
For the fiscal year ended Mar 31,2024:¥21 million
For the fiscal year ended Mar 31,2023:¥(12)million(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 31,2024

150,541

109,76572.9

4,325.88

Mar 31,2023

138,029

99,54372.1

3,912.48

Reference:

EquityAs of Mar 31,2024:
As of Mar 31,2023:¥109,760 million¥99,535 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 31,2024

8,549(4,263)(3,199)38,432

Mar 31,2023

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

2. Cash dividends
Annual dividends per share
First
SecondThird
quarter-end quarter-end quarter-end
Fiscal year ended
Mar 31,2023
Fiscal year ended
Mar 31,2024

Fiscalyear-end

Total

Yen

Yen

Yen

Yen

－

45.00

－

45.00

90.00

－

45.00

－

45.00

90.00

－

45.00

－

50.00

95.00

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

Total cash
dividends(Total)Yen Millions of yen

%

%

2,311

21.0

2.4

2,286

29.9

2.2

Fiscal year ending

Mar 31,2025(Forecast)

21.0

3. Consolidated Earnings Forecasts for the fiscal year ending March 31, 2025 (from April 1, 2024, to March 31, 2025)(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

50,000

7.2

7,100

44.4

7,600

26.2

5,200

28.6

196.74

103,000

8.9

16,00052.5

16,80039.9

11,50050.3

452.21*Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(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 31,2024

26,732,017 shares

As of Mar 31,2023

26,732,017 shares(ii) Number of treasury shares at the end of the period
As of Mar 31,2024

1,359,017 shares

As of Mar 31,2023

1,291,509 shares(iii) Average number of shares outstanding during the period
Fiscal year ended Mar 31,2024

25,430,811 sharesFiscal year ended Mar 31,2023

24,673,479 shares

2[Reference] Overview of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended Mar 31, 2024 (from Apr 1, 2023, to Mar 31, 2024)(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 31,2024

67,269

(9.4)

7,537

(40.9)

8,270(42.4)

5,154(40.2)

Mar 31,2023

74,222

16.2

12,75624.1

14,344

27.9

8,612

(2.0)

Basic earnings
per share
Fiscal year ended

Diluted earnings
per share
Yen

Yen

Mar 31,2024

202.70－Mar 31,2023

349.05－(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 31,2024

127,299

90,37370.9

3,561.80

Mar 31,2023

116,390

83,99472.1

3,301.60

Reference:

EquityAs of Mar 31,2024:
As of Mar 31,2023:%

Yen¥90,373 million¥83,994 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 page7 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, 2024
(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
7

2. Basic Approach to the Selection of Accounting Standards

8

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)

9
9
11
13
15
17
17
17
21
21

4

1. Information Concerning Results for the Nine months ended Mar 31, 2024
(1) Overview of Operating Results
During the fiscal year ended March 31, 2024, the Japanese economy continued to show signs of recovery,
including an increase in inbound demand and an improvement in the state of employment, 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 the impact of factors such as rising raw material
and fuel prices, the prolonging of the situation in Ukraine, increasing tensions in the Middle East, concerns
regarding the future of the Chinese economy, and the risk that a downturn of overseas economies amidst
continued global monetary tightening could put downward pressure on the domestic economy.
In light of these circumstances, our group has been steadily implementing specific measures in line with the basic
policies set forth in our new medium-term management plan, Shape the Future-2025 (FY2023 to FY2025), which
was announced in November 2023. The three basic policies are continuous strengthening of our base in existing
businesses, strengthening of new product creation capabilities, and promotion of sustainability management.
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, production with the Allyl Chloride manufacturing equipment at the Mizushima Plant, where problems
with the main equipment occurred in April 2023, has recovered to about 70% since November, and operation isstable. In the Functional chemicals business, despite declining demand for major products, we were able tosteadily increase the sales volume of Acrylic Rubber by developing new markets. In the Healthcare business,following the decision to construct new manufacturing facilities at the Matsuyama Plant, it was also decided toconstruct new manufacturing facilities at the Amagasaki Plant as a second phase of expansion in order to meet thegrowing demand for pharmaceutical purification materials for diabetes treatments and the rapidly expanding
obesity treatments. Investment plans for pharmaceutical purification materials are progressing smoothly, withconstruction at the Matsuyama Plant beginning in November 2023 and completion scheduled for September 2024,
and construction at the Amagasaki Plant beginning in January 2024 with completion scheduled for fiscal 2026.
The growth strategy of the Healthcare business was highly evaluated, and our price-to-book (P/B) ratio has
remained significantly higher than the average for TSE Prime companies (exceeding a P/B ratio of 2.0 as of theend of March 2024).
In terms of the “strengthening of new product creation capabilities,” the development of materials for nextgeneration storage batteries, such as ultra-high ionic conductive polymers for all-solid batteries, which wereselected as a NEDO Green Innovation Fund project, is progressing as originally planned. Construction of a battery
research building as a new research facility was completed in March 2024. We will steadily develop our products
to become the next global niche-top products.
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 have created a new integrated report. Additionally, 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 2023, 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 to further spread business reform activities, improve
employee engagement, and nurture the next generation of human resources.
Due in part to the manufacturing equipment problems at the Mizushima Plant (net sales: ¥5,200 million, operating
profit: ¥5,100 million), net sales for the current consolidated fiscal year were ¥94,711 million, a decrease of 9.1%
year on year. In terms of profit, operating profit decreased 32.0% year on year to ¥10,579 million, ordinary profit
decreased 29.7% year on year to ¥12,062 million, and profit attributable to owners of parent decreased 27.3% year
on year to ¥7,686 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-onyear comparisons, 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 due to the manufacturing equipment problems at the Mizushima 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 decline in demand for epoxy resins andsofter overseas market conditions, 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 14.3% year on year to¥36,272 million.
5

<Functional Chemicals>
In the synthetic rubbers business, net sales of Epichlorohydrin Rubber increased due to a recovery in automobile
production.Net sales of Acrylic Rubber increased mainly in Asia as it was adopted for new applications in Japanand overseas. Although demand for DAP resin was sluggish in Japan, Europe, and the Americas, net sales
increased due to strong sales in China. Sales of Allyl Ethers decreased due to a decline in demand for Silane
coupling agents mainly for paint applications in Europe, the Americas, and China, as well as softening market
conditions. As a result of the above, net sales in the Functional chemicals business decreased 8.6% year on year to¥29,133 million.
<Healthcare >Net sales of pharmaceutical purification materials increased due to a steady growth in demand for applications
such as diabetes treatments in Europe, the Americas, and Asia. Net sales of active pharmaceutical ingredients(APIs) and their intermediates increased due to expanded sales of nucleic acid drug substances, osteoporosis drug
substances, and anti-cancer drug intermediates. As a result of the above, net sales in the Healthcare businessincreased 15.5% year on year to ¥11,868 million.
<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 12.5% year on year to ¥17,283 million.
(2) Overview of Financial Position(Assets)
Current assets were ¥92,444 million, an increase of 3.1% since March 31, 2023. The increase was due
primarily to an increase of ¥1,589 million in cash and deposits and ¥777 million in notes and accounts
receivable-trade, and contract assets.
Non-current assets were ¥58,096 million, an increase of 20.1% since March 31, 2023. The increase wasdue primarily to an increase of ¥2,829 million in property, plant and equipment and ¥6,922 million in
investment securities.
As a result, total assets were ¥150,541 million, an increase of 9.1% since March 31, 2023.
(Liabilities)
Current liabilities were ¥32,860 million, an increase of 1.7% since March 31, 2023. The increase was due
primarily to an increase of ¥711 million in notes and accounts payable - trade, ¥2,224 million in othercurrent liabilities and a decrease of ¥239 million in income taxes payable.
Noncurrent liabilities were ¥7,915million, an increase of 28.2% since March 31, 2023. The increase wasdue to increases of ¥2,289 million in deferred tax liabilities.
As a result, total liabilities were ¥40,776 million, an increase of 6.0% since March 31, 2023.
(Net assets)
Net assets were ¥109,765 million, an increase of 10.3% since March 31, 2023. The increase was due
primarily to an increase of ¥5,360 million in retained earnings and ¥4,817 million in valuation difference on
available-for-sale securities.

(3) Overview of Cash Flows
Cash and cash equivalents as of March 31, 2024, were ¥38,432 million, an increase of ¥1,588 million
since March 31, 2023. The status of each type of cash flow during the fiscal year ended March 31, 2024,
and the main contributing factors were as follows.
(Cash flow from operating activities)
Net cash provided by operating activities amounted to ¥8,597 million. This was due primarily to income
before income taxes of ¥11,391 million, income taxes paid of ¥5,936 million and depreciation of ¥3,684
million.
(Cash flow from investing activities)
Net cash used in investing activities amounted to ¥4,263 million. This was due primarily to the purchase ofproperty, plant and equipment of ¥5,113 million.
(Cash flow from financing activities)
Net cash used in financing activities amounted to ¥3,199 million. This was due primarily to the purchaseof treasury shares of ¥ 805 million and dividends paid of ¥2,287 million.
6(4) Future outlook of Forward-looking Statement, Including Consolidated financial results Forecasts
With regard to the future economic outlook, although recovery of the economy is expected to continue, theeconomic situation is expected to remain difficult due to concerns regarding the prolonging of the situation in
Ukraine, increasing tensions in the Middle East, the future of the Chinese economy, and the risk of economic
downturn associated with global monetary tightening, as well as inflation and further increases in raw material
and fuel prices. It is against this backdrop that our group is entering the second year of our medium-term
management plan, “Shape the Future-2025” (FY2023 to FY2025). In the first year of the medium-term
management plan, the Healthcare business expanded steadily as planned, but the results were significantly lower
than the previous fiscal year due to the impact of the Allyl Chloride manufacturing equipment problems at theMizushima Plant and a decline in demand for major products in the Basic chemicals and the Functional chemicals
businesses.
We will continue to strive to further spread our operational reform activities while aiming to achieve the target
numbers of the medium-term management plan by steadily implementing the three basic policies of the plan:“continuous strengthening of our base in existing businesses,” “strengthening of new product creation
capabilities,” and “the promotion of sustainability management.”
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, we aim to complete the repair of the Allyl Chloride manufacturing equipment at the Mizushima Plant by
the end of June 2024, and will actively work to strengthen facility management and invest in renewal andmaintenance so that stable operation can continue. In the Functional chemicals business, we will work to cultivate
the market for global niche-top products such as synthetic resin and synthetic rubber, and develop new
applications for such products. We will expand the scale of Acrylic Rubber and non-phthalate allyl resin bydeveloping new products. In the Healthcare business, with regard to pharmaceutical purification materials, we will
invest in increasing production capacity in order to ensure that we can capture future growth in demand for drugs
for diabetes treatments and the rapidly expanding obesity treatments. With regard to APIs and their intermediates,
following the full operation of the newly constructed facilities in March 2023, we will consider capital investment
aimed at full-scale entry into the biopharmaceutical field. We plan to invest more than ¥8,000 million over thethree years of our medium-term management plan to establish a foundation as our third highest earning 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 polyethers 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 sensors and actuators, to support the future shift to electric and self-driving vehicles. In
the field of Information and Communication, we will continue to focus on the development of semiconductor
peripheral materials, such as silver nanoparticles as a high thermal conductivity bonding agent for power
semiconductors, which is expected to be in great demand in the future, and carbon nanotubes for next-generation
semiconductors and electronic devices. In the field of Health and Healthcare, we will continue to develop polymer
gels as new purification materials for biopharmaceuticals that meet pharmaceutical modalities, and are working to
expand the new adoption of plant-based lactic acid bacteria OS-1010, which has been developed as a new antiaging material that contributes to extending healthy life expectancy.
In terms of “the promotion of sustainability management,” under our basic policy on sustainability, in which “weaim to combine contributing to the realization of a sustainable society through our business activities withenhancing our corporate value,” the Sustainability Committee will play a central role in appropriately responding
to the Corporate Governance Code, responding to the TCFD, calculating GHG emissions, planning andimplementing measures to reduce our environmental impact, promoting health management, and developing
human resources through the penetration of business reform activities as part of our investment in human capital.
In addition, we will deepen dialogue with all stakeholders, including investors, through the fulfillment of theinformation disclosed in the Integrated Report, etc., and strive to further enhance our corporate value.
For the next fiscal year, we project net sales of ¥103,000 million, operating profit of ¥16,000 million, ordinary
profit of ¥16,800 million, and profit attributable to owners of parent of ¥11,500 million.

7

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.

83. 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
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

9

As of March 31, 2024

12,844

14,43329,29030,068

3,826

4,710

23,998
9,516
2,602
3,965
3,599
△3
89,64023,99810,065
2,354
5,502
1,314
△3
92,444

18,403△11,681
6,721
66,586△55,346

20,573△12,301
8,272
70,812△58,241

11,23912,570

2,304
1,057
△413
644
3,730
4,527
△4,064462
25,103

2,301
1,084
△469
614
3,807
4,609
△4,243365
27,932

217
102
320
639

162
105
504
772

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

28,224
12
441
735
△21
29,39158,096
150,541(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

10

As of March 31, 2024

14,397
7,172
3,585
928
58
6,168
32,31015,108
7,172
1,194
927
65
8,392
32,860

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

393
787
3,999
1,999
556
179
7,915
40,776

15,871
17,00962,741△3,811
91,812

15,871
17,014
68,102△4,611
96,377

7,339

12,156

△101
676
△190

71
871
283

7,723

13,383

8
99,543138,0294
109,765
150,541

(2) Consolidated Statements of Income and Statements of Comprehensive Income
1) Consolidated Statements of Income(Millions of yen)
Fiscal year ended
March 31, 2023
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
Extraordinary 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

11

Fiscal year ended
March 31, 2024

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

94,557
69,76024,796
14,304
10,492

15
580
573

20
672
－

－

21

469
180
300
2,119

525
736
254
2,230

109

104

12

－

253

－

55

585

80
511
17,16424714
12,008

245
176
421

0
180
181

217

305

297

－

1,053
1,568
16,018
5,433
33
5,466
10,552△18
10,570492
798
11,391
3,649
104
3,753
7,637
△12
7,650

2) Consolidated statements of Comprehensive Income(Millions of yen)
Fiscal year ended
March 31, 2023
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

12

Fiscal year ended
March 31, 2024

10,552

7,637

505

4,817

△166
456

173
177

△92

474

11

19

715
11,267

5,661
13,29911,281

13,310△13△10

(3) Consolidated Statements of Changes in Net Assets
FY2022(Fiscal year ended March 31, 2023)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of
period15,871

Capital surplus

Retained earnings

14,391

Total shareholders'equityTreasury shares(7,658)54,25576,859Changes during period
Dividends 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
translation
adjustment

212

of defined benefit
plans

(97)

Total accumulated
othercomprehensive

Non-controllinginterests

Total net assets

income7,012

23

83,896

Changes during period(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

FY2023(Fiscal year ended March 31, 2024)(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of
period15,871

Capital surplus

Retained earnings

17,009Total shareholders'

Treasury shares

equity(3,811)62,741

91,812

Changes during period
Dividends of surplus(2,289)(2,289)

7,650

7,650

Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury

4

shares

(805)

(805)

5

10

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

4

5,360

(800)

4,565

17,014

68,102(4,611)

96,377

periodBalanceperiod

at

end

of

15,871

Accumulated other comprehensive income
Valuationdifference on
Deferred gains oravailable-for-sale losses on hedges
securities
Balance at beginning of
period

7,339

(101)

Foreign currency Remeasurements
translationof defined benefit
adjustment

676

plans

Total accumulated
othercomprehensive

Non-controllinginterests

Total net assets

income

(190)

7,723

8

99,543

Changes during period(2,289)Dividends of surplus
Profit attributable to7,650

owners of parent
Purchase of treasury
shares(805)

Disposal of treasury

10

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

at

end

of

4,817

173

194

474

5,659

(3)

5,656

4,817

173

194

474

5,659

(3)

10,221

12,156

71

871

283

13,383

4

109,76514

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2023
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 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
Subsidies received
Income taxes paid
Net cash provided by (used in) operating
activities

15

Fiscal year ended
March 31, 2024

16,018
3,635
98

11,391
3,684
55

△78

15

△39

△1

92

△826

△595
109
△80
217
△245

△693
104
△293
305
－

55

585

1,053

492

△176

△180

297

－

△2,491△1,512△3,237
△194
△573
△180

△1,794
570
－
△736

138

△148

12

△21

△682
13,152
601
△109
573
－
△4,8632,805
13,802
700
△104
－
137
△5,936

9,354

8,597

(Millions of yen)
Fiscal year ended
March 31, 2023
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
Proceeds from sale of shares of subsidiaries
and associates
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

16

Fiscal year ended
March 31, 2024

△4,773△5,113

300

0

△336
△417
197

△249
△19
269

－

588

180
△531

599
△337

△5,380△4,263△41－△36△2,236△2,216
△66

△66
△805
△2,287△39△4,596△3,199

428

453

△194

1,588

37,01636,84321－

36,84338,432

(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 four business segments, including “Basicchemicals”, “functional Chemicals”, “Healthcare” and “Trading and Others”“Basic Chemicals” manufactures and sells (i)chlor-alkali products, (ii)epichlorohydrin and (iii) allyl
chloride, etc.
"Functional chemicals" manufactures and sells (i)allyl ethers, (ii)epichlorohydrin rubber, (iii) DAP resin,(iv)modifiers for energy-saving tires and (v) electrodes, etc.
"Healthcare" manufactures and sells (i)pharmaceutical purification materials, and (ii)active pharmaceuticalingredients and intermediates, etc.
“Trading and Others” includes (i)sales and transportation and storage of chemical products, (ii)sales andmanufacturing of consumer products, (iii) sales and manufacturing of building materials and (iv)materials
recycling, 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.

17

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

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

Functional
chemicals

Healthcare

Trading
and Others

Total

Adjustments*1

Consolidated*2

Net salesJapan35,3509,577
3,677
15,92664,53264,532
－
China
7
9,027
1,533
2,658
13,227
13,227
Asia
4,864
5,461
1,579
1,051
12,957
12,957－
Europe
702
3,952
2,273
70
6,999
6,999
－
Others
1,396
3,840
1,210
43
6,491
6,491
－
Revenue fromContracts with
42,32231,85910,27519,750 104,208－
104,208
Customers
Other Revenue
－
－
－
－
－
－
－
External sales
42,32231,85910,27519,750 104,208
104,208－
Intersegment
sales or
4
780
－
3,855
4,640
(4,640)－reclassifications
Total
42,32632,64010,27523,606 108,848(4,640)104,208
Segment income
4,847
6,398
4,615
988
16,850(1,293)
15,557
Segment assets
39,20019,83815,066
22,46596,57041,459138,029
Other items
Depreciation
1,953
968
446
66
3,435
199
3,635
Amortization of
－
－
44
12
57
40
98
goodwill
Investment toentities accounted
－
297
－
－
297
－
297
for using equity
methodIncrease of current
and noncurrent
1,910
926
2,129
182
5,150
203
5,353
assets
Notes1: Adjustments are as follows.
(1) Adjustments of segment income of ¥(1,293) 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) Adjustments of segment assets of ¥41,459 million are corporate assets of ¥41,459 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 ¥203 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

The fiscal year ended Mar 31, 2024 (from April 1, 2023, to Mar 31, 2024)(Millions of yen)Basicchemicals

Functional
chemicals

Healthcare

Trading
and Others

Total

Adjustments*1

Consolidated*2

Net salesJapan
34,9308,683
4,219
14,39662,22962,229
－
China
8,549
1,251
2,206
12,00812,008
－
Asia
954
5,947
2,231
586
9,719
9,719
－
Europe
265
3,155
3,148
80
6,649
6,649
－
Others
122
2,797
1,016
13
3,950
3,950
－
Revenue fromContracts with
36,272
29,133
11,86817,283
94,557－
94,557
Customers
Other Revenue
－
－
－
－
－
－
－
External sales
36,272
29,133
11,86817,283
94,557
94,557－
Intersegment
sales or
1
1,086
－
2,958
4,047
(4,047)－
reclassifications
Total
36,27330,22011,86820,241
98,604(4,047)
94,557
Segment income
231
4,544
5,715
1,217
11,709(1,216)
10,492
Segment assets
44,22019,445
18,95622,964 105,587
44,954
150,541
Other items
Depreciation
1,802
890
681
48
3,422
261
3,684
Amortization of
－
－
44
11
55
－
55
goodwill
Investment toentities accounted
－
331
－
－
331
－
331
for using equity
methodIncrease of current
and noncurrent
2,631
899
2,495
424
6,451
738
7,190
assets
Notes1: Adjustments are as follows.
(1) Adjustments of segment income of ¥(1,216) 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) Adjustments of segment assets of ¥44,954 million are corporate assets of ¥44,954 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 ¥738 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.

19

4．Changes in Reportable Segments(Changes in Reportable Segment Classification)
Starting from the first three months of the accounting period, the Healthcare business, which waspreviously included in the Functional Chemicals segment, has been spun off as its own new segment inline with business expansion. In addition, in order to better understand the actual state of businessperformance, 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 andmanage 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 reportable segments. The segment
information for the Nine months of the pervious consolidated fiscal year is disclosed based on the postchange classification of the reportable segments.

20

(Per Share Information)
Fiscal year ended
March 31, 2023
3,912.48

Net assets per share (Yen)

Earnings per share (Yen)
Diluted earnings per share (yen) are not shown as there are no diluted shares.

March 31, 2024
4,325.88

428.43300.84Note1: Basis for calculation of earnings per share and diluted earnings per share is as follows.
Fiscal year ended
March 31, 2023

March 31, 2024

10,570－
10,57024,673

7,650
－
7,650
25,430Earnings 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)
Note2: 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)(Significant event after the reporting period)
Not applicable

21

March 31, 2023
99,543

March 31, 2024
109,765

8
99,535

4
109,760

25,44025,373