(Reference Translation)
February 5, 2021

Osaka Soda Co., Ltd.
CONSOLIDATED FINANCIAL RESULTS
For the Third Quarter of the Fiscal Year ending March 31, 2021
(Prepared under Japan GAAP, unaudited)

Company name:

Osaka Soda Co., Ltd.

Stock Exchange Listing:Tokyo

Securities code:

4046

URL:

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

Representative:

Kenshi Terada, Representative Director, President & Chief Operating Officer

For inquiry:

Yoshihiro Ueda, Director, General Manager, Administration Division(Telephone: +81-6-6110-1560)

Filing date for quarterly report:

February 8, 2021

Commencement date of dividend payment:－Supplementary materials for the quarterly financial results:

None

Quarterly financial results briefings:

None

1. Consolidated Financial Results(Amounts are rounded down to the nearest million yen)

(1) Results of Operations
Nine Months Ended
December 31, 2020

December 31, 2019

Millions of yen

Change *Millions of yen

Change *Net sales

72,327(9.6) %79,998(2.3) %

Operating income

6,284(15.3) %7,419(3.0) %Ordinary income

6,500(17.5) %7,879(4.6) %Net income attributable to owners of parent

4,355(11.9) %4,944(12.0) %Comprehensive income

7,320

34.3 %

5,451

73.5%

Note:

Percent changes for nine months are year-on-year comparisons.

Net income per share (Yen)

184.81210.28

Diluted net income per share (Yen)

165.04185.60(2) Financial Condition
December 31, 2020

March 31, 2020

Millions of yen

Ratio

Millions of yen

Ratio

Total assets

116,037－

110,851－

Net assets

73,925－

69,121－Equity attributable to owners of the parent*

73,922－

69,121－－

63.7%－62.4%

Equity ratio
Note:

Equity = “Total net assets” minus “Non-controlling interests”

12. Dividends
Year ending Mar. 31, 2021

Year ending Mar. 31, 2021

Year ended Mar. 31, 2020－－

32.50 yen*32.50 yen－－(Forecast)End of first quarterEnd of second quarterEnd of third quarterEnd of fourth quarter

32.5 yen－32.50 yen

Full year

65.0 yen－

65.00 yen

Note:

Revisions of dividend forecast from the latest announcement: None

3. Earnings Forecast for the fiscal year ending March 31, 2021
Full-year
Millions of yen

Change*Net sales

96,000(9.0) %Operating income

8,000(17.5) %Ordinary income

8,400(18.6) %Net income attributable to owners of parent

5,700(12.4) %Note: Revisions of earnings forecast from the latest announcement: NoneEarnings per share (Yen)

240.22* Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Application of accounting methods used specifically for the preparation of quarterly consolidated financialstatements: None
(3) Changes in accounting policies, accounting estimates and restatements of revisions
1) Changes in accounting policies due to revisions of accounting standards, etc.: None
2) Changes in accounting policies other than 1: None
3) Changes in accounting estimates: None
4) Restatement of revisions: None
(4) Number of outstanding shares (common stock)1) Number of shares outstanding at the end of the period (including treasury shares)
As of December 31, 2020:

26,731,415

shares

As of March 31, 2020:

26,731,415

shares2) Number of treasury shares at the end of the period
As of December 31, 2020:

3,404,432

shares

As of March 31, 2020:

3,002,772

shares3) Average number of shares outstanding in each period
Nine months ended December 31, 2020:

23,565,292

sharesNine months ended December 31, 2019:

23,513,924

shares2

* Quarterly Review Procedures
The quarterly financial results are exempt from the quarterly review procedures by certified public
accountants or audit firm.

*Financial Forecasts and Other Notes
This material contains forward-looking statements such as earnings forecast about Osaka Soda Co.,
Ltd. and its group companies (“Osaka Soda Group”). These forward-looking statements are based on
the current assumptions and beliefs of Osaka Soda Group in light of the information currently available
to it, and contain known and unknown risks, uncertainties and other factors. Osaka Soda Group
therefore wishes to caution readers that actual results could be materially different from any futureresults.

DISCLAIMER:
This is an English translation of the original Japanese document and is prepared for reference. Should
there be any inconsistency between the translation and the Japanese original, the latter shall prevail.
This translation is subject to change without notice. Osaka Soda Co., Ltd. and/or its group companies
shall individually or jointly accept no responsibility or liability for damage or loss caused by any error,inaccuracy, misunderstanding, or changes with regard to this translation.

34. QUALITATIVE INFORMATION(1) Results of Operations
During the third quarter of fiscal 2020 (April 1 through December 31, 2020), Japan’s economy has remainedin a severe situation due to the restriction on economic activity along with the novel coronavirus (COVID-19)
pandemic. Although the pick-up trend has been seen in part along with a resumption of economic activity,
downward pressure stemming from the impact of a resurgence of COVID-19 at home and abroad is likely toremain strong for the time being. The economic outlook remains uncertain.
Under the circumstances, the “BRIGHT-2020” medium-term management plan has entered the final year.
Based on the three basic policies of “creating new growth engines”, “establishing a profitable global business”,
and “completing business structure reform”, Osaka Soda Group has further advanced these measures.
As a result, net sales were ¥72,327 million, a decrease of 9.6% compared to the same period of fiscal 2019.
Operating income was ¥6,284 million, a decrease of 15.3% compared to the same period of fiscal 2019.
Ordinary income was ¥6,500 million, a decrease of 17.5% compared to the same period of fiscal 2019. Net
income attributable to owners of the parent was ¥4,355 million, a decrease of 11.9% compared to the same
period of fiscal 2019.
Basic Chemical Products
In Chlor-Alkali, net sales decreased due to fall in overall domestic demand along with the impact of COVID-19
pandemic. In Epichlorohydrin, net sales decreased due to downturn in demand at home and abroad despite
continued steady growth in electronics materials.
As a result, Basic Chemical Products reported net sales of ¥31,064 million, down 14.1% compared to the same
period of fiscal 2019.
Functional Chemical Products
Due to the COVID-19 pandemic, global car production dropped temporarily by almost half compared to thesame fiscal 2019. Afterwards, China’s car production showed a recovery trend. The demand in Epichlorohydrin
Rubber was declined in this situation. In Acrylic rubber, product adoption by customers increased mainly in
China and Asia since second half of fiscal 2020.
The sales volume in Diallyl Phthalates Resins showed a recovery trend while third quarter in fiscal 2020,
though the demand declined in commercial ink particularly in Japan, Europe, and the United States.
In Allyl Ether, net sales increased due to demand recovery trend in China and the Unites States.
In Separation Media in Pharmaceutical Industry (Silica Gel for Liquid Chromatography), net sales increased
due to the expansion of demand for its diabetes therapeutics drug exported to Europe, the United States andIndia.
In Active Pharmaceutical Ingredients (API) and their Intermediates, net sales expanded due to increased salesof intermediates for anti-tuberculosis drug, intermediates for anti-ulcer drug, and intermediates for insomnia
therapeutics
As a result, Functional Chemical Products reported net sales of ¥30,446 million, down 2.6% compared to thesame period of fiscal 2019.
Housing Facilities and Others
Net sales were ¥10,816 million, down 14.0% compared to the same period of fiscal 2019. Sale of life materials
and construction materials continued to be sluggish.

4(2) Financial Condition
AssetsCurrent assets were ¥71,920 million, an increase of 2.9% since March 31, 2020. The increase was due
primarily to an increase of ¥2,081 million in notes and accounts receivable-trade, an increase of ¥1,499 million
in short term investment securities, an increase of ¥623 in electronically recorded monetary claims
respectively, and a decrease of ¥1,842 million in cash and deposits.
Noncurrent assets were ¥44,117 million, an increase of 7.7% since March 31, 2020. The increase was due
primarily to an increase of ¥4,482 million in investment securities, and a decrease of ¥1,051 million in property,plant and equipment, a decrease of ¥178 million in intangible assets respectively.
As a result, Total assets were ¥116,037 million as of December 31, 2020, an increase of 4.7% since March31, 2020.
Liabilities
Current liabilities were ¥26,830 million, an increase of 0.6% since March 31, 2020. The decrease was due
primarily to a decrease of ¥965 million in notes and accounts payable-trade and a decrease of ¥760 million inincome taxes payable.
Noncurrent liabilities were ¥15,281 million, an increase of 1.4% since March 31, 2020. The increase wasdue primarily to an increase of ¥1,561 million in deferred tax liabilities and a decrease of ¥1,263 million inbonds with subscription rights to shares.
As a result, Total liabilities were ¥42,111 million as of December 31, 2020, an increase of 0.9% since March31, 2020.
Net assets
Net assets were ¥73,925 million as of December 31, 2020, an increase of 7.0% since March 31, 2020.
(3) Earnings Forecast
There are no revisions to the earnings forecast from the previous forecast announced in the "Consolidated
financial results for the quarterly period ended March 31, 2021, unaudited" on May 11, 2020.

55. CONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATED BALANCE SHEETS(Millions of yen)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Electrically recorded monetary claims
Short term investment securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Less: Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant, and equipment
Machinery, equipment, and vehicles - Net
Other - Net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
OtherLess: Allowance for doubtful accounts
Total investment and other assets
Total noncurrent assets
Total assets

6

March 31,2020

December 31,2020

15,09925,641
3,096
14,299
6,901
1,368
2,268
1,296
(100)
69,871

13,256
27,723
3,720
15,799
6,559
1,676
2,373
912
(100)
71,920

10,11011,743
21,853

9,317
11,48420,802

681
346
1,027

544305849

16,803368
933(6)18,09940,980110,851

21,285277
908(6)22,465
44,117116,037

CONSOLIDATED BALANCE SHEETS (Continued)(Millions of yen)

Liabilities
Current liabilities
Notes and accounts payable- trade
Short term loans payable
Income taxes payable
Provision for bonuses
Other current liabilities
Total current liabilities
Noncurrent liabilities
Bonds with subscription rights to shares
Deferred tax liabilities
Provision for directors retirement benefits
Net defined benefit liability
Other noncurrent liabilities
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Legal capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Re-measurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total net assets and liabilities

7

March 31,2020

December 31,
2020

13,159
7,767
1,278
911
3,543
26,66014,124
7,172
518434
4,580
26,83010,000
436
281
3,265
1,085
15,06941,730

8,737
1,997
16
3,242
1,286
15,281
42,111

15,87014,387
41,870(6,682)65,446

15,87014,38844,691(7,669)67,282

4,177
8
7
(518)
3,674
69,121
110,851

7,161
(11)
(20)
(488)
6,640
2
73,925116,037

CONSOLIDATED STATEMENTS OF INCOME(Millions of yen)

Nine Months Ended
December 31,
December 31,
2019
2020
79,99872,32762,91656,78517,082
15,542

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expensesOperating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange losses
Other
Total non-operating expenses
Ordinary income

9,662
7,419

9,257
6,284

9418
28

12437-

145
601

82
532

71-

68
111

48
22
142
7,879

126
10316
6,500

0178
179

-

Extraordinary income
Gain on sales of noncurrent assets
Other
Total extraordinary income
Extraordinary lossLoss on retirement of noncurrent assets
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries andassociates
OtherTotal extraordinary loss
Income before income taxes

216354
252

112
-3827
7,231

112
6,388

Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net loss attributable to non-controlling interests
Net income attributable to owners of parent

1,946
340
2,286
4,944
4,944

1,701
331
2,033
4,354(0)4,3558CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(Millions of yen)

Nine Months Ended
December 31,
December 31,
2019
2020
4,944
4,354

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Re-measurements of defined benefit plans
Share of other comprehensive income of entities accounted

500
7(27)
26(0)

2,983(19)
(28)
29
0507
5,451

2,965
7,320

5,451
－7,320(0)for using equity method

Total
Comprehensive income
Comprehensive income attributable to:
Owners of the parent
Non-controlling interests

6. Notes to the Consolidated Financial Statements(1) Going concern assumption: None
(2) Significant changes in the amount of shareholders’ equity: None
(3) Segment Information
Nine months ended December 31, 2019

(Millions of yen)
Net sales

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

Externalsales
36,17331,245
12,57979,998－Intersegment sales
or reclassifications
1467
606
689
(689)
－

79,998

Total
36,18731,313
13,18680,687(689)
79,998Segment
income *2
3,709
4,233
358
8,301(881)
7,419

Adjustments of segment income of ¥(881) million are corporate expenses not allocated toreportable segments. Corporate expenses are mainly expenses not attributable to a reporting
segment and related to fundamental research and development as well as administrativedepartments.

Notes 2:

Segment Income is reconciled with consolidated operating income.

9Nine months ended December 31, 2020

Basic Chemical Products
Functional Chemical Products
Housing Facilities and Others
Subtotal
Adjustments *1
TotalNotes 1:(Millions of yen)
Net salesIntersegment sales
or reclassifications
17102210
330(330)－Externalsales
31,06430,446
10,81672,327－72,327

Total
31,08130,54811,02772,658(330)
72,327

Segment
income *2
2,709
4,241
269
7,181(936)
6,284

Adjustments of segment income of ¥(936) million are corporate expenses not allocated toreportable segments. Corporate expenses are mainly expenses not attributable to a reporting
segment and related to fundamental research and development as well as administrativedepartments.

Notes 2:

Segment Income is reconciled with consolidated operating income.

10