(Reference Translation)
November 7, 2016

Osaka Soda Co., Ltd.
CONSOLIDATED FINANCIAL RESULTS
For the quarterly period ended September 30, 2016
(Prepared under Japan GAAP, unaudited)

Company name:

Osaka Soda Co.,Ltd.

Stock Exchange Listing:Tokyo

Securities code:

4046

URL:

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

Representative:

Tamotsu Sato, Representative Director, Chief Executive Officer

For inquiry:

Kazuya Kawabata, Executive Officer, General Manager, Administration Division(Telephone: +81-6-6110-1560)

Scheduled date of filing of quarterly report:

November 8, 2016

Scheduled date of commencement of dividend payment:

December 6, 2016

Supplementary materials prepared for the quarterly financial results:
Quarterly financial results briefings:

1. Consolidated Financial Results

Yes

Yes (for institutional investors and investment analysts)(Amounts are rounded down to the nearest million yen)

(1) Results of Operations
Six Months Ended
September 30, 2016

September 30, 2015

Millions of yen

Change *Millions of yen

Change *Net sales

45,917(8.8)%

50,347

2.9%

Operating income

3,248

5.5%

3,080

30.5%

Ordinary income

2,600(20.1)%

3,255

23.1%

Net income1,764(10.8)%

1,977

25.6%

Comprehensive income

1,178

10.7%

1,064(60.9)%

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

Diluted net income per share

(Yen)

16.75

18.77

13.90

15.59

(2)Financial Condition
September 30, 2016

March 31, 2016

Millions of yen

Ratio

Millions of yen

Ratio

Total assets

95,367－

97,027－

Net assets

48,946－48,296－Equity48,946－48,296－－51.3%－49.8%

Equity ratio

12. Dividends
Year ending Mar. 31, 2017

Year ending Mar. 31, 2017Year ended Mar. 31, 2016

－－

5.00

5.00

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

5.00

5.00

Full year

10.00

10.00

3. Earnings Forecast for the fiscal year ending March 31, 2017
Full-year
Millions of yen

Change*103,000

0.9%

Operating income

6,500

0.9%

Ordinary income

6,800

5.6%

Net income

4,300

19.2%

Net sales

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

(Yen)

40.82

* 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 September 30, 2016:

111,771,671

shares

As of March 31, 2016:

111,771,671

shares2) Number of treasury shares at the end of period
As of September 30, 2016:

6,422,875

shares

As of March 31, 2016:

6,419,632

shares3) Average number of shares outstanding in each period
Six months ended September 30, 2016:

105,350,785

sharesSix months ended September 30, 2015:

105,358,111

shares2* Status of quarterly review procedure:This quarterly financial results are not subject to the quarterly review procedure in accordance with theFinancial Instruments and Exchange Act. The quarterly review procedure of consolidated financial
statements has not been completed at the time of disclosure.

*Appropriate use of financial forecasts, other special notes
This material contains forward-looking statements such as earnings forecast about Osaka Soda Co., Ltd. andits group companies (“Osaka Soda Group”). These forward-looking statements are based on the current
assumptions and beliefs of Osaka Soda Group in light of the information currently available to it, and containknown and unknown risks, uncertainties and other factors. Osaka Soda Group therefore wishes to caution
readers that actual results could be materially different from any future results.

DISCLAIMER:

This is an English translation of the original Japanese document and is prepared for reference. Should there
be any inconsistency between the translation and the Japanese original, the latter shall prevail.

34. QUALITATIVE INFORMATION(1)Results of Operations
During the six months ended September 30, 2016, Japan’s economy has continued to recover moderately asa trend against the background of steady improvement in the employment and income situation, although theoutlook has remained uncertain due to down side risks in corporate profits by rapid changes in foreignexchange and the effects of the slowdown in Asia’s emerging countries including China and resource-richcountries.
Under the circumstance, net sales were ¥45,917 million, affecting by foreign exchange fluctuations, a decreaseof 8.8% compared to the same period of fiscal 2015.
Operating income was ¥3,248 million, reflecting business expansion of Functional Chemical Products, anincrease of 5.5% compared to the same period of fiscal 2015.
Ordinary income was ¥2,600 million, due to the impact of foreign currency translation loss, a decrease of
20.1% compared to the same period of fiscal 2015.
Net income attributable to owners of parent was ¥1,764 million, a decrease of 10.8% compared to the same
period of fiscal 2015.
Osaka Soda Group has been built the profitable structure that cannot be easily affected by global
environmental changes, expanding high value added business centering on Functional Chemical Products
such as health-care related business, synthetic resin and synthetic rubber, increasing competitiveness by costdown in Chlor-Alkali, Allyl Chloride and Epichlorohydrin. As a result, Operating income increased incomparison with the same period of fiscal 2015. Significantly, profitability in Functional Chemical Products has
been strengthened, net sales increased 0.2% compared to the same period of fiscal 2015, operating income
increased 10.7% compared to the same period of fiscal 2015, responding to changes of business environment.
Basic Chemical Products
In Chlor-Alkali, net sales decreased due to the effect of weak market conditions.
In Epichlorhydrin, net sales decreased due to foreign exchange fluctuations despite continued steady exportsales.
As a result, net sales in Basic Chemical Products were ¥19,902 million, a decrease of 9.2% compared to thesame period of fiscal 2015.
Functional Chemical Products
In Separation Media in Pharmaceutical Industry (Silica Gel for Liquid Chromatography), net sales increased
due to continued steady sales to China and domestic market as well as an increase of sales to Europe in
peptide drugs purification.
In Active Pharmaceutical Ingredients and their Intermediates, net sales increased due to continued steadysales in “Active pharmaceutical ingredients for drugs to improve blood circulation” and “Intermediates for antiviral drugs” as well as pharmaceutical contract manufacturing.
In Diallyl Phthalate Resin, net sales increased due to continued steady sales to Europe and domestic market
in printing inks.
In Allyl Ethers, net sales increased due to continued steady export sales to China and Europe.
In Epichlorhydrin Rubber, net sales decreased unit sales price down by foreign exchange fluctuations despitesales volume increase due to steady export sales to Asian countries including China.
As a result, net sales in Functional Chemical Products were ¥18,313 million, an increase of 0.2% comparedto the same period of fiscal 2015.
Housing Facilities and Others
Net sales in housing facilities and others were ¥7,700 million, a decrease of 24.1% compared to the same
period of fiscal 2015 due to sluggish in DAP Decorative Laminate and Household Materials and Components.

4(2) Financial Condition
AssetsCurrent assets were ¥56,283 million, a decrease of 1.5% since March 31, 2016. The decrease was due
primarily to a decrease of ¥971 million in notes and accounts receivable-trade, a decrease of ¥809 million inmerchandise and finished goods, an increase of ¥500 million in short term investment securities and anincrease of ¥375 million in cash and deposits.
Noncurrent assets were ¥39,083 million, a decrease of 2.0% since March 31, 2016. The decrease was due
primarily to a decrease of ¥621 million in investment securities.
As a result, Total assets were ¥95,367 million as of September 30, 2016, a decrease of 1.7% since March 31,
2016.
Liabilities
Current liabilities were ¥29,995 million, a decrease of 2.2% since March 31, 2016. The decrease was due
primarily to a decrease of ¥602 million in income taxes payable.
Noncurrent liabilities were ¥16,425million, a decrease of 9.1% since March 31, 2016. The decrease was due
primarily to a decrease of ¥1,200 million in long term loans payable.
As a result, Total liabilities were ¥46,421 million as of September 30, 2016, a decrease of 4.7% since March31, 2016.
Net assets
Net assets were ¥48,946 million as of September 30, 2016, an increase of 1.3% since March 31, 2016.
(3) Cash Flows
As of September 30, 2016, cash and cash equivalents were ¥19,912 million, an increase of ¥876 million
compared with those as of March 31, 2016.
Cash flows from operating activities
Net cash provided by operating activities totaled ¥5,138 million, due primarily to ¥2,338 million in income
before income taxes and ¥1,440 million in depreciation, a decrease of ¥934 million in notes and accounts
receivable-trade.
Cash flows from investing activities
Net cash used in investing activities totaled ¥1,769 million, due primarily to payments of ¥1,175 million forpurchase of property, plant, and equipment.
Cash flows from financing activities
Net cash used in financing activities amounted to ¥1,747 million, due primarily to repayments of ¥1,220
million of long term loans payable.
(4) Earnings Forecast
There are no revisions to the earnings forecast from the previous forecast announced in the "Consolidated
financial results for the year ended March 31, 2016" dated May 10, 2016.

5. OTHER INFORMATION
Additional information
Effective from the three months ended June 30, 2016, Osaka Soda Group adopted the “RevisedImplementation Guidance on Recoverability of Deferred Tax Assets” (Accounting Standards Board of Japan
Implementation Guidance No.26, issued on March 28, 2016).

56.

CONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATED BALANCE SHEETS(Millions of yen)

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

6

March 31,2016

September 30,
2016

12,037
27,730
6,999
6,163
1,107
1,847
1,252
(1)
57,137

12,412
26,759
7,499
5,353
1,291
1,913
1,055
(2)
56,283

11,098
9,259
20,357

11,016
9,261
20,277923
269
1,192846
325
1,171

17,154
1,764(578)
18,33939,89097,027

16,532
1,665(563)
17,63439,083
95,367

CONSOLIDATED BALANCE SHEETS (Continued)(Millions of yen)

Liabilities
Current liabilities
Notes and accounts payable- trade
Short term loans payable
Current portion of long term loans payable
Income taxes payable
Provision for bonuses
Other current liabilities
Total current liabilities
Noncurrent liabilities
Bonds with subscription rights to sharesLong term loans payable
Provision for directors retirement benefits
Net defined benefit liability
Other noncurrent liabilities
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Unrealized gain on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Re-measurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total net assets and liabilities

7

March 31,2016

September 30,
2016

12,9938,880
2,440
1,338709
4,307
30,66913,061
8,880
2,420
736
724
4,173
29,995

10,000
2,960
533
3,063
1,505
18,062
48,731

10,000
1,760
529
3,064
1,071
16,42546,421

10,882
9,399
24,697(1,666)43,312

10,882
9,399
25,934(1,668)44,548

5,500
(82)
45
(479)
4,983
48,296
97,027

4,895
(41)
(6)
(449)
4,397
48,946
95,367

CONSOLIDATED STATEMENTS OF INCOME(Millions of yen)

Six Months Ended
September 30,
September 30,2015
2016
50,34745,91741,85936,837
9,079
8,488

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses

5,408
3,080

5,831
3,248

17
179
529232

15193－
41250

49－
756
3,255

34845
18898
2,600

1818－
－

Income before income taxes

172
149
322
2,952

262
－
262
2,338

Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controlling interests

904
70
974
1,977
－

673
(100)
573
1,764
－

Net income attributable to owners of parent

1,977

1,764

Operating income
Non-operating income
Interest income
Dividend income
Foreign exchange gain
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange loss
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Commemorative activities expense
Total extraordinary loss

8

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(Millions of yen)

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

9Six Months Ended
September 30,
September 30,
2015
2016
1,977
1,764(908)(22)
611(913)
1,064(605)
40(51)
29(586)
1,178

1,064
－

1,178
－

CONSOLIDATED STATEMENTS OF CHASH FLOWS(Millions of yen)

Six Months Ended
September 30,
September 30,
2015
2016
Cash flows from operating activities
Income (loss) before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' retirement
benefits
Increase (decrease) in allowance for retirement benefits foremployees
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

10

2,952
1,438
66(3)
(22)
(101)

2,338
1,440
77(13)
15(3)51(196)49(13)
172(193)(948)(1,220)
(201)
1,782
196
(49)
(860)
1,068

(208)
34
678
262
934
552
210
(98)
6,220
208
(35)
(1,254)
5,138

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)(Millions of yen)

Six Months Ended
September 30,
September 30,
2015
2016
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Repayments of long-term loans payable
Cash 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
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents

11(620)
(36)
(8)
(126)
(791)

(1,175)
(97)
(252)
(244)
(1,769)(1,240)(421)(2)(1,663)15(1,220)(525)(1)(1,747)(745)(1,371)
20,095301

876
19,036－

19,025

19,912

7. Notes to the Consolidated Financial Statements(1) Notes regarding the going concern assumption
None(2) Notes regarding significant changes in the amount of shareholders’ equity
None(3) Segment information
Six months ended September 30, 2015

(Millions of yen)
Net sales

Segment
ExternalIntersegment sales
incomeTotalsales
or reclassifications
Basic Chemical Products
21,923
12
21,935607
Functional Chemical Products
18,282
118,283
2,856
Housing Facilities and Others
10,142
218
10,360131
Total
50,347232
50,5793,595
Adjustments *1(232)
(232)
(515)
－Consolidated operating income *2
50,34750,3473,080－Notes 1: Adjustments of segment income of ¥(515) 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.

Six months ended September 30, 2016

(Millions of yen)
Net sales
Segment
ExternalIntersegment sales
incomeTotalsales
or reclassifications
Basic Chemical Products
19,902919,912498
Functional Chemical Products
18,313
018,314
3,163
Housing Facilities and Others
7,700
694
8,395
55
Total
45,917704
46,622
3,717
Adjustments *1(704)
(704)
(468)
－
Consolidated operating income *2
45,91745,917
3,248－
Notes 1: Adjustments of segment income of ¥(468) 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 administrative
departments.
Notes 2: Segment Income is reconciled with consolidated operating income.

12