(Reference Translation)
February 10, 2017

Osaka Soda Co., Ltd.
CONSOLIDATED FINANCIAL RESULTS
For the quarterly period ended December 31, 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:

Takuya Kajino, General Manager, Administration Division(Telephone: +81-6-6110-1560)

Filing date for quarterly report:

February 13, 2017

Date for commencement of dividends 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, 2016

December 31, 2015

Millions of yen

Change *Millions of yen

Change *Net sales

69,090(8.5)%

75,505

1.8%

Operating income

5,201

0.1%

5,194

30.9%

Ordinary income

5,267(2.9)%

5,424

17.6%

Net income attributable to owners of parent

3,467

5.1%

3,299

18.8%

Comprehensive income

4,466

32.4%

3,372(29.4)%

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

Diluted net income per share(Yen)

32.91

31.31

27.31

26.01

(2)Financial Condition
December 31, 2016

March 31, 2016

Millions of yen

Ratio

Millions of yen

Ratio

Total assets

99,051－

97,027－

Net assets

51,706－48,296－Equity *51,706－48,296－

－

52.2%

－

49.8%

Equity ratio

Note: Equity = “Total net assets” minus “Subscription rights to shares”

12. Dividends
Year ending Mar. 31, 2017

Year ending Mar. 31, 2017

Year ended Mar. 31, 2016－－

5.00 yen*

5.00 yen－－(Forecast)End of first quarterEnd of second quarterEnd of third quarterEnd of fourth quarter5.00 yen

5.00 yen

Full year

10.00 yen

10.00 yen

Note: Revisions of dividend forecast from the latest announcement: None
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 attributable to owners of parent

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 financial
statements: 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: None4) 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, 2016:

111,771,671

shares

As of March 31, 2016:

111,771,671

shares2) Number of treasury shares at the end of the period
As of December 31, 2016:

6,425,222

shares

As of March 31, 2016:

6,419,632

shares3) Average number of shares outstanding in each period
Nine months ended December 31, 2016:

105,349,769

sharesNine months ended December 31, 2015:

105,357,329

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 currentassumptions 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 nine months ended December 31, 2016, Japan’s economy has continued to recover moderately asa trend against the background of improvement in the employment and income situation, although the outlook
remains uncertain due to the slowdown in Asia’s emerging countries including China, sharp volatility in foreign
currency exchange and concerns over protectionism on a global scale as a result of US presidential elections.
Under the circumstance, net sales were ¥69,090 million, due to unit sales price down by negative currency
effects despite continued steady shipment of products, in addition, Housing Facilities and Others, which has
implemented structural reforms to improve profitability, a decrease of 8.5% compared to the same period offiscal 2015. Operating income was ¥5,201 million, reflecting sales expansion of Functional Chemical Products,
an increase of 0.1% compared to the same period of fiscal 2015. Ordinary income was ¥5,267 million, due toforeign currency translation loss, a decrease of 2.9% compared to the same period of fiscal 2015. Net income
attributable to owners of parent was ¥3,467 million, an increase of 5.1% compared to the same period of fiscal
2015.
Osaka Soda Group has built the profitable structure that cannot be easily affected by environmental changes,
strengthening competitiveness by cost down in Chlor-Alkali and Epichlorohydrin, expanding high value added
business centering on Functional Chemical Products such as health-care related business and synthetic resin
and rubber, and implementing structural reforms to enhance competitiveness. Accordingly, the net sales
decreased but the operating income increased in comparison to the same period of fiscal 2015.
Basic Chemical Products
In Chlor-Alkali, net sales decreased due to the impact of market conditions.
In Epichlorhydrin, net sales decreased due to negative currency effects despite continued steady increase inexport sales.
As a result, net sales in Basic Chemical Products were ¥30,242 million, a decrease of 6.2% compared to thesame period of fiscal 2015.
Functional Chemical Products
In Separation Media for in Pharmaceutical Industry (Silica Gel for Liquid Chromatography), net sales increased
due to an increase of sales to Europe in biopharmaceutical drugs purification as well as continued steady sales
in the domestic market.
In Active Pharmaceutical Ingredients and their Intermediates, net sales increased due to continued steady
growth in contract manufacturing of pharmaceutical drugs such as Anti-viral Drug.
In Diallyl Phthalate Resin, net sales increased due to continued steady increase in domestic sales as well as
export sales to Unites States in UV printing inks.
In Allyl Ethers, net sales decreased due to unit sales price down by negative currency effects despite volume
growth in export sales to China, which were mainly used for silane coupling agents.
In Epichlorhydrin Rubber, net sales decreased due to unit sales price down by negative currency effects
despite steady volume growth in export sales to China and Korea.
As a result, net sales in Functional Chemical Products were ¥26,828 million, a decrease of 3.3% compared tothe same period of fiscal 2015.
Housing Facilities and Others
Net sales were ¥12,019 million, a decrease of 22.6% compared to the same period of fiscal 2015.

4

(2) Financial Condition
AssetsCurrent assets were ¥56,934 million, a decrease of 0.4% since March 31, 2016. The decrease was due
primarily to a decrease of ¥2,594 million in cash and deposits, a decrease of ¥327 million in raw materials andsupplies, an increase of ¥1,983 million in notes and accounts receivable-trade, and an increase of ¥625 million
in work in process.
Noncurrent assets were ¥42,116 million, an increase of 5.6% since March 31, 2016. The increase was due
primarily to an increase of ¥158 million in investment securities and an increase of ¥727 million in property,plant, and equipment.
As a result, Total assets were ¥99,051 million as of December 31, 2016, an increase of 2.1% since March 31,2016.
Liabilities
Current liabilities were ¥30,720 million, an increase of 0.2% since March 31, 2016. The decrease was due
primarily to an increase of ¥861 million in notes and accounts payable-trade and a decrease of ¥514 million inincome taxes payable.
Noncurrent liabilities were ¥16,623 million, a decrease of 8.0% since March 31, 2016. The decrease wasdue primarily to a decrease of ¥1,680 million in long term loans payable.
As a result, Total liabilities were ¥47,344 million as of December 31, 2016, a decrease of 2.8% since March31, 2016.
Net assets
Net assets were ¥51,706million as of December 31, 2016, an increase of 7.1% since March 31, 2016.
(3) 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, unaudited" dated May 10, 2016.

5. OTHER INFORMATION
Additional information
Effective from the three months ended June 30, 2016, Osaka Soda Group adopted the “Revised
Implementation 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
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
Other
Less: Allowance for doubtful accounts
Total investment and other assets
Total noncurrent assets
Total assets

6

March 31,2016

December 31,
2016

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

9,442
29,714
7,499
5,958
1,733
1,520
1,068
(3)
56,934

11,098
9,259
20,357

10,754
10,331
21,085

923
269
1,192

808
402
1,210

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

18,7351,650(565)19,820
42,116
99,051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 assetsShareholders’ 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

December 31,
2016

12,993
8,880
2,440
1,338
709
4,307
30,66913,854
8,880
2,290
824
361
4,510
30,72010,000
2,960
533
3,063
1,505
18,062
48,731

10,000
1,280
548
3,059
1,735
16,62347,344

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

10,882
9,399
27,111(1,669)45,7235,500(82)45(479)4,983
48,296
97,027

6,418
7
(7)
(434)
5,983
51,706
99,051CONSOLIDATED STATEMENTS OF INCOME(Millions of yen)

Nine Months Ended
December 31,December 31,2015
2016
75,50569,09062,041
55,17913,91013,463

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
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
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of parent

88,269
5,194

8,709
5,201

20300
36357

21
318
52
393

71
42
12
126
5,424

48
259
20
328
5,267

1818-

266
216
483
4,960

410
410
4,856

1,392
268
1,661
3,299
3,299

1,385
3
1,389
3,467
3,467

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 adjustments
Re-measurements of defined benefit plans
Total
Comprehensive income
Comprehensive income attributable to:Owners of parent
Non-controlling interests9Nine Months Ended
December 31,
December 31,
2015
2016
3,299
3,467
85(25)
(3)
1673
3,372

917
89(52)
44
999
4,466

3,372－

4,466－

7. 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, 2015

Basic Chemical Products
Functional Chemical Products
Housing Facilities and Others
Subtotal
Adjustments *1
TotalNotes 1:Notes 2:(Millions of yen)
Net salesIntersegment sales
or reclassifications
172340360(360)－

Externalsales
32,241
27,734
15,52975,505－75,505

Total
32,25927,736
15,86975,865(360)
75,505

Basic Chemical Products
Functional Chemical Products
Housing Facilities and Others
Subtotal
Adjustments *1
TotalNotes 2:

1,417
4,380
153
5,950(756)5,194

Adjustments of segment income of ¥(756) million are corporate expenses not allocated toreportable segments. Corporate expenses are mainly expenses not attributable to areporting segment and related to fundamental research and development as well as
administrative departments.
Segment Income is reconciled with consolidated operating income.

Nine months ended December 31, 2016

Notes 1:

Segment
income *2(Millions of yen)
Net salesIntersegment sales
or reclassifications
1215
1,423
1,451(1,451)－

Externalsales
30,242
26,82812,01969,090－69,090Total
30,254
26,844
13,44370,541(1,451)
69,090

Segment
income *2
1,063
4,686
143
5,893(691)5,201

Adjustments of segment income of ¥(691) million are corporate expenses not allocated toreportable segments. Corporate expenses are mainly expenses not attributable to areporting segment and related to fundamental research and development as well as
administrative departments.
Segment Income is reconciled with consolidated operating income.

10