(Reference Translation)
Aug 6, 2018OSAKA SODA CO., LTD.
CONSOLIDATED FINANCIAL RESULTS
For the quarterly period ended June 30, 2018
(Prepared under Japan GAAP, unaudited)

Company name:OSAKA SODA CO., LTD.

Stock Exchange Listing:Securities code:4046

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

Tokyo

Representative:

Kenshi Terada, Representative Director, Chief Operating Officer

For inquiry:

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

Scheduled date of filing of quarterly securities report:

Aug 7, 2018

Scheduled date of commencement of dividend payment:－Supplementary materials prepared for the 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
Three Months Ended
June 30, 2018

June 30, 2017

Change *Net sales

Millions of yen

26,160

10.7%

Operating income

Millions of yen

2,461

61.1%

Ordinary income

Millions of yen

2,887

59.1%

Net income

Millions of yen

2,065

68.4%

Comprehensive income

Millions of yen

1,644(23.3)%

Net income per shareYen

91.44

-

Diluted net income per shareYen

76.71-

23,634
1,528
1,814
1,226
2,144
58.21
48.26

Change *4.2%(4.9)%
92.0%
139.0%-%-Note:
1.

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

2.

The Company implemented the Share Consolidation on the basis that every five (5) issued Existing Shares beconsolidated into one (1) Consolidated Shares on October 1, 2017. As a result, net income per share and diluted
net income per share are calculated assuming that the Share Consolidation was executed at the beginning of theprevious fiscal year.

(2)Financial Condition
June 30, 2018

March 31, 2018

Total assets

Millions of yen

113,030

115,020

Net assets

Millions of yen

62,27960,953EquityMillions of yen

62,27960,953

%

55.1

53.0

Equity ratio

12. Dividends
Year ending Mar. 31, 2018

(Forecast)Year ending Mar. 31, 2019Year ended Mar. 31, 2018－－

End of first quarterEnd of second quarter

30.00

5.50

End of third quarter－－End of fourth quarter

30.00

30.00

Full year

60.00－Note:The Company implemented the Share Consolidation on the basis that every five (5) issued Existing Shares be
consolidated into one (1) Consolidated Shares on October 1, 2017. For reference, considering the Share
Consolidation, the amount of annual dividend for fiscal year ended March 31, 2018 is to be ¥57.50. As a result, theamount of annual dividends for fiscal year ended March 31, 2019 will be ¥60.00, an increase of ¥2.50 substantially.

3. Earnings Forecast for the fiscal year ending March 31, 2019
First half

Full-year
Change*Change*Net sales

Millions of yen

50,0004.2%

105,000

3.7%

Operating income

Millions of yen

3,800

10.1%

8,000

9.3%

Ordinary income

Millions of yen

3,900

2.4%

8,200

9.6%

Net income

Millions of yen

2,600

4.3%

5,400

13.0%

Yen

115.11-239.07-

Earnings per share

Note: Percent changes for three months are year-on-year comparisons.

* Notes(1)

Changes in significant subsidiaries during the current quarterly period(Changes in specified subsidiaries resulting in the change in scope of consolidation):

(2)

(3)

(4)

None

Application of accounting methods used specifically for the preparation of quarterly
consolidated financial statements:

None

Changes in accounting policies, accounting estimates and restatements of revisions

None1) Changes in accounting policies due to revisions of accounting standards, etc.:

None2) Changes in accounting policies other than 1):

None3) Changes in accounting estimates:

None4) Restatement of revisions:

None

Number of outstanding shares (common stock)1) Number of shares outstanding at the end of the period (including treasury shares)
As of June 30, 2018:

25,641,717

shares

As of March 31, 2018:25,052,432

shares

As of June 30, 2018:

2,789,587

shares

As of March 31, 2018:

2,465,710

shares2) Number of treasury shares at the end of period23) Average number of shares outstanding in each period
Three months ended June 30, 2018

22,583,312

sharesThree months ended June 30, 2017

21,069,182

sharesNote:
The Company implemented the Share Consolidation on the basis that every five (5) issued Existing Shares beconsolidated into one (1) Consolidated Shares on October 1, 2017. As a result, average number of shares outstanding
are calculated assuming that the Share Consolidation was executed at the beginning of the previous fiscal year.

*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. and its group companies (“Osaka Soda Group”). These forward-looking statements arebased 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
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 three months ended June 30, 2018, Japan’s economy has continued its moderate recovery trend,with improvements in the employment situation and corporate profits, though the economic outlook remains
uncertain on higher raw material & fuel prices and US-China trade friction’s serious impact on export
environment.
Under the circumstances, Osaka Soda Group has been shifting to profit oriented management, in line with thebasic policies “Creating new growth engines”, “Establishing a profitable global business”, and “Completingbusiness structural reforms” set forth in the mid-term management plan “BRIGHT - 2020”.
Basic Chemical Products
The business achieved sales price revision in response to rising cost of raw materials and fuels. Cost down
has been ongoing like that the improved electrolyzer, which is developed in-house, was introduced.
Functional Chemical Products
The market share for major products, such as Synthetic Rubber, Synthetic Resin, and Allyl Ethers, continued
to expand for establishing a profitable global business. In addition, new growth engines were creating thanks
to business expansion of Column Instruments, entry into the field of High Pharmacological Active
Pharmaceutical, Acrylic Rubber launched in 2017, and “Radper” which is non phthalate type allyl resin,launched in April 2018. The improvement of productivity achieved through introduction of Internet of Things
and Artificial Intelligence as business structural reforms. Also, the safe and stable operations were establishedand further enhancement in competitiveness was implemented.
As a result, net sales were ¥26,160 million, an increase of 10.7% compared to the same period of fiscal 2017.
Operating income was ¥2,461 million, an increase of 61.1% compared to the same period of fiscal 2017.
Ordinary income was ¥2,887 million, an increase of 59.1% compared to the same period of fiscal 2017. Net
income attributable to owners of parent was ¥2,065 million, an increase of 68.4% compared to the same periodof fiscal 2017. Net sales and all three levels of profit posted record high.
The following is a summary of reporting segments.
Basic Chemical Products
In Chlor-Alkali, net sales increased due to continued steady demand as well as the sale of new grade
inorganic chemical.
In Epichlorohydrin, net sales increased as a result of ongoing tightness in Asia’s supply/demand
fundamentals as well as sales price revision in response to rising cost of raw materials and fuels.
As a result, Basic Chemical Products reported net sales of ¥12,142 million, up 21.2% compared to the same
period of fiscal 2017.
Functional Chemical Products
In Allyl Ethers, net sales increased due to continued solid growth of domestic sales and export to Europe forsilane coupling agent.
In Diallyl Phthalate Resin, net sales increased due to growth in domestic sales of UV Inks and expansion indemand of pipeline repair to U.S. market.
In Epichlorohydrin Rubber, domestic sales maintained solid growth due to boost adoption of automotiveparts, Acrylic Rubber was adopted for automotive parts in domestic and overseas market.
In Separation Media in Pharmaceutical Industry (Silica Gel for Liquid Chromatography), domestic sales
maintained solid growth for analytical use. In Colum Chromatography and Analytical Instruments, both ofbusiness maintained favorable export sales to China for Colum Chromatography and Korea for Analytical4Instruments respectively.
In Active Pharmaceutical Ingredients (API) and their Intermediates, new pharmaceutical intermediates tooverseas market, veterinary API to domestic market, and new development projects from domesticpharmaceutical companies maintained steady growth. In addition, we focused on expanding business domainsuch as domestic sales of imported generic drugs.
As a result, Functional Chemical Products reported net sales of ¥10,297 million, up 6.3% compared to thesame period of fiscal 2017.
Housing Facilities and Others
Net sales were ¥3,720 million, down 5.4% compared to the same period of fiscal 2017.
(2) Financial Condition
AssetsCurrent assets were ¥65,143 million, a decrease of 1.4% since March 31, 2018. The decrease was due
primarily to a decrease of ¥275 million in cash and deposits.
Noncurrent assets were ¥47,887 million, a decrease of 2.2% since March 31, 2018. The decrease was due
primarily to an increase of ¥658 million in investment securities.
As a result, Total assets were ¥113,030 million, a decrease of 1.7% since March 31, 2018.
Liabilities
Current liabilities were ¥31,370 million, a decrease of 5.5% since March 31, 2018. The decrease was due
primarily to a decrease of ¥ 600 million in income taxes payable.
Noncurrent liabilities were ¥19,380 million, a decrease of 7.1% since March 31, 2018. The decrease wasdue primarily to a decrease of ¥1,341 million in bonds with subscription rights to shares.
As a result, Total liabilities were ¥50,750 million, a decrease of 6.1% since March 31, 2018.
Net assets
Net assets were ¥62,279 million, an increase of 2.2% since March 31, 2018.
(3) Earnings Forecasts
There are no revisions to the earnings forecast from the previous forecast announced in the “Consolidated
financial results for the year ended March 31, 2019” dated on May 8, 2018.

55. Consolidated Financial Statements

CONSOLIDATED BALANCE SHEETS(Millions of yen)

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

6

March 31, 2018

June 30, 201813,49327,7103,845
10,499
6,155
1,608
1,938
811
(2)
66,06010,78827,984
4,565
10,499
7,088
1,743
1,694
780
(2)
65,143

10,716
12,87823,595

11,296
11,99023,287

975
623
1,599

933
585
1,518

22,684305781(6)23,764
48,959115,020

22,030290766(6)23,08147,887113,030

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 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
Capital stock
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 adjustments
Re-measurements of defined benefit plans
Total accumulated other comprehensive income
Total net assets
Total net assets and liabilities

7

March 31, 2018

June 30, 201815,522
8,880
800
1,444
792
5,767
33,206

16,262
8,880
400
843
434
4,550
31,37013,824
2,192
611
3,004
1,226
20,85954,066

12,483
2,112
597
2,976
1,210
19,38050,75013,97012,48731,517(5,037)52,938

14,64013,15732,905(6,018)54,6848,332(40)
41(317)
8,015
60,953
115,0207,871
1716(309)
7,594
62,279113,030

CONSOLIDATED STATEMENTS OF INCOME(Millions of yen)Three Months Ended
June 30, 2017
June 30, 2018
23,634
26,16019,297
20,4584,337
5,701

Net sales
Cost of sales
Gross profit

2,808
1,528

3,239
2,461

6197－

3227
10116
11331

183
43
468

39
645
1,814

27
1442
2,887

Extraordinary income
Gain on sales of investment securities
Total extraordinary income

106106

137
137

Extraordinary loss
Loss on retirement of noncurrent assets
Total extraordinary loss
Income before income taxes

163
163
1,757

9595
2,930

Net income

266264
531
1.226

756
108
864
2,065

Net income attributable to non-controlling interests
Net income attributable to owners of parent－1,226－
2.065

Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gain
OtherTotal non-operating income
Non-operating expenses
Interest expenses
OtherTotal non-operating expenses
Ordinary income

Income taxes - current
Income taxes - deferred
Total income taxes

8

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(Millions of yen)

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 for using equity method
Total other comprehensive income
Comprehensive incomeComprehensive income attributable to:
Owners of parent
Non-controlling interests

9Three Months Ended
June 30, 2017
June 30, 2018
1,226
2,065
907
7(7)
11－

(460)
57(24)
8(0)918
2,144(420)1,6442,144－

1,644－

6. Notes to the Consolidated Financial Statements(1) Notes regarding the going concern assumption:

None(2) Notes on significant changes in shareholders’ equity:(Additional Information)

None

Adoption of “Partial Amendments to Accounting Standard for Tax Effect Accounting”“Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ Statement No.28, February
16, 2018) is adopted from the first quarter of this fiscal year. Accordingly, deferred tax assets are presented
under investments and other assets, and deferred tax liabilities are presented under noncurrent liabilities.

(3) Segment information
Three months ended June 30, 2017

(Millions of yen)

Basic

Functional

Housing

Consolidated

ChemicalChemicalFacilities

Products

Productsand Others

Total

Adjustments*1

operatingincome *2

Net sales
External sales

10,018

9,683

3,932

23,634－

23,634

1

1202

205

(205)

－

10,019

9,634

4,135

23,839(205)

23,634

265

1,383

3

1,759

(230)

1,528

Intersegment sales
or reclassifications
Total
Segment income

Notes 1:

Adjustments of segment income of ¥(230) 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 has been adjusted for the operating income appearing in the quarterly
consolidated statements of income.

Three months ended June 30, 2018

(Millions of yen)

Basic

Functional

HousingConsolidated

ChemicalChemicalFacilities

Products

Productsand Others

Total

Adjustments *1

operatingincome *2

Net sales
External sales
Intersegment sales
or reclassifications
TotalSegment incomeNotes 1:

12,142

10,2973,720

26,160－26,160

4

22

143

171

(171)

－

12,146

10,3203,863

26,331(171)

26,160

1,444

1,235

42

2,721(259)

2,461

Adjustments of segment income of ¥(259) 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 has been adjusted for the operating income appearing in the quarterly
consolidated statements of income.

10