(Reference Translation)
May 14, 2021

OSAKA SODA CO., LTD.
CONSOLIDATED FINANCIAL RESULTS
For the Fiscal Year Ended 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 and Chief Executive Officer

For inquiry:

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

Scheduled date of general shareholders meeting:June 29, 2021

Scheduled date of commencement of dividend payment:

June 11, 2021

Scheduled date of filing of securities report:

June 30, 2021

Supplementary materials prepared for the financial results:

Yes

Annual financial results briefings:

Yes

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

(1) Results of Operations
Year ended
March 31, 2021

March 31, 2020

Change *Change *Net sales

Millions of yen

97,266(7.8)%

105,477(2.2)%

Operating income

Millions of yen

8,341(14.0)%

9,698

2.2%

Ordinary income

Millions of yen

8,838(14.4)%

10,321

2.7%

Net income attributable to owners of parent

Millions of yen

6,050(7.0)%

6,506(4.2)%

Comprehensive income

Millions of yen

10,622125.3%

4,714

11.1%

Net income per shareYen

257.37-276.14-

Diluted net income per share

Yen

230.23-244.16-Return on equity

%

8.3

-

9.7

-

Return on total assets

%

7.7

-

9.2

-

Operating income ratio

%

8.6

-

9.2

-

Notes: Percent changes are year-on-year comparisons(2)Financial Condition
As of March 31, 2021

As of March 31, 2020

Total assets

Millions of yen

119,373

110,851

Net assets

Millions of yen

77,232

69,121Equity *Millions of yen

77,224

69,121Equity ratio

%

64.7

Net assets per share (Yen)

Yen

3,310.56

62.4
2,912.98

Note:

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

1

(3)Cash Flows

Year ended
March 31, 2021

March 31, 2020

Cash flows from operating activities

Millions of yen

9,347

10,336

Cash flows from investing activities

Millions of yen(1,850)(4,092)

Cash flows from financing activities

Millions of yen(4,464)(1,677)

Cash and cash equivalents at end of year

Millions of yen

31,93628,8992. Dividends
Year ending

Year ended

Year ended

March 31, 2022

March 31, 2021

March 31, 2020

(Forecast)End of first quarter

Yen

-

-

End of second quarter

Yen

32.50

32.50

End of third quarter

Yen

-

-

End of fourth quarter

Yen

32.50

32.50

32.50

Yen

65.00

65.00

65.00

-

1,516

1,542

Full year

32.50

Payment of dividends

Millions of yen

Dividend payout ratio

%

22.3

25.3

23.5

Ratio of dividend to net assets

%

-

2.1

2.3

Notes:(1)

Dividend forecast has been revised from the forecast most recently announced.

3. Earnings Forecast for the fiscal year ending March 31, 2022
End of second quarter

Full-year

Change*Change*Net sales

Millions of yen

37,0007.8%

75,5000.3%

Operating income

Millions of yen

4,000

14.4%

9,000

7.9%

Ordinary income

Millions of yen

4,400

19.0%

9,700

9.8%

Net income

Millions of yen

3,200

29.3%

6,800

12.4%

Yen

137.18-291.51-

Earnings per share

Note: The above consolidated financial forecast reflects the application of the “Accounting Standard for Revenue
Recognition” (ASBJ Statement of No.29) which is adopted from the beginning of the fiscal year ending March 31, 2022.
The year-on-year changes are presented assuming the same standard is applied to the fiscal year ended March 31, 2021.

* Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries resulting in thechange in scope of consolidation):

None(2) Changes in accounting policies, accounting estimates and restatements of revisions
1) Changes in accounting policies due to revisions of accounting standards, etc.:
2) Changes in accounting policies other than 1):
3) Changes in accounting estimates:
4) Restatement of revisions:

None

None

None

2

None

(3) Number of outstanding shares (common stock)1) Number of shares outstanding at the end of the period (including treasury shares)
As of March 31, 2021:

26,731,415

Shares

As of March 31, 2020:

26,731,415

Shares

As of March 31, 2021:

3,404,604

Shares

As of March 31, 2020:

3,002,772

Shares2) Number of treasury shares at the end of period

3) Average number of shares outstanding in each period
Year ended March 31, 2021:

23,510,263

SharesYear ended March 31, 2020:

23,563,486

Shares* Audit procedures
The financial results are not subject to the audit procedures performed by certified public accountants
or an audit firm.

* Earnings 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 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. Thistranslation is subject to change without notice. Osaka Soda Group shall individually or jointly accept no
responsibility or liability for damage or loss caused by any error, inaccuracy, misunderstanding, or changes
regard to this translation.

3

4. Results of Operations and Financial Condition(1) Results of Operations
During the fiscal year ended March 31, 2021, Japan’s economy has remained in a severe situation due to therestriction 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 fromthe impact of a resurgence of COVID-19 at home and abroad is likely to remain strong for the time being, theeconomic 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.
Under the policy of“creating new growth engines, Acrylic Rubber and Non-phthalate Allyl Resin were launched
to expand sales. In the pharmaceutical-related business, we worked to expand the field of outsourcing byincreasing the number of special reactor units and to promote the development of high pharmacologically
active drugs. Both measures expanded. In Silica Gel for Liquid Chromatography, the adoption of Peptide andNucleic Acid Drugs increased in new grade, the market development steadily progressed. Carbon nanotubes
have been adopted in the antistatic sheet used in the inspection process.
Under the policy of “establishing a profitable global business”, we worked to expand aggressively the share of
global niche top products and the specialty chemical business in North America through the investment in US
funds.
Under the policy of“completing business structure reform” , we have been working to expand the business inthe Kyushu region and strengthen cost competitiveness through rationalization of production due to anagreement on the integration of electrolysis facilities owned by Mitsubishi Chemical Fukuoka Plant with that of
Osaka Soda Kokura Plant.
Also, we initiate business reforms in order to review organizational operations, business process, and humanresources management and implement the cost down across the entire company.
As a result, net sales were ¥97,266 million, a decrease of 7.8% compared to the same fiscal period of 2019.
Operating income was ¥8,341 million, a decrease of 14.0% compared to the same period of fiscal 2019.
Ordinary income was ¥8,838 million, a decrease of 14.4% compared to the same period of fiscal 2019. Net
income attributable to owners of the parent was ¥6,050 million, a decrease of 7.0% compared to the same
period of fiscal 2019.
Basic Chemical Products
In Chlor-Alkali, net sales declined for the full year, though demand for semiconductors and electronic materials
began to recover from a decline caused by the spread of COVID-19 infection in the second half of the fiscal
year.
In Epichlorohydrin, net sales declined for the full year, though demand for electronic materials recovered
significantly in Japan and overseas in the second half of the fiscal year.
As a result, net sales were ¥42,416 million, a decrease of 1.2% compared to the same period of fiscal 2019.
Functional Chemical Products
In Synthetic Rubber related business, Epichlorohydrin Rubber was affected by a severe decline in automobile
production across the world, however, Acrylic Rubber was adopted mainly in China and other Asian countries.
In Diallyl Phthalate Resin, net sales decreased due to a decline in demand for commercial printing inks,
particularly in Japan, the United States, and Europe.
In Allyl Ethers, net sales increased in the second half of the fiscal year due to sharp recovery in demand ofsilane coupling products for semiconductor in China and the United States.

4

In Silica Gel for Liquid Chromatography, net sales increased due to expansion of demand for diabetes
treatment drugs in Europe, the United States, and India.
In Active Pharmaceutical Ingredients (API) and their Intermediates, sales of intermediates for anti-tuberculosis
drugs, anti-ulcer drugs and insomnia treatment drugs.
As a result, net sales were ¥40,744 million, a decrease of 2.1% compared to the same period of fiscal 2019.
Housing Facilities and Others
Housing Facilities and Others were ¥14,106 million, a decrease of 9.4% compared to the same period of fiscal
2019 due to a decline in sales of life-related products and construction materials.
(2) Financial Condition
AssetsCurrent assets were ¥73,876 million, an increase of 5.7% since March 31, 2020. The increase was due
primarily to an increase of ¥2,336 million in cash and deposits, an increase of 1,013 in notes and accounts
receivable-trade respectively.
Noncurrent assets were ¥45,496 million, an increase of 11.0% since March 31, 2020. The increase was due
primarily to an increase of ¥6,162 million in investment securities, a decrease of ¥1,316 million in property,
plant and equipment.
As a result, Total assets were ¥119,373 million, an increase of 7.7% since March 31, 2020.
Liabilities
Current liabilities were ¥26,818 million, a decrease of 0.6% since March 31, 2020. The decrease was due
primarily to an increase of ¥213 million in income taxes payable.
Noncurrent liabilities were ¥15,322 million, an increase of 1.7% since March 31, 2020. The decrease wasdue primarily to an increase of ¥2,027 million in deferred tax liabilities, a decrease of ¥1,263 in bonds with
subscription rights to shares and a decrease of ¥560 million in provision for directors’ retirement benefits
respectively.
As a result, Total liabilities were ¥42,141 million, an increase of 1.0% since March 31, 2020.
Net assets
Net assets were ¥77,232 million, an increase of 11.7% since March 31, 2020.
(3) Cash flow
Cash and cash equivalents at the end of fiscal year were ¥31,936 million, an increase of ¥3,036 million
compared to the previous fiscal period.
Cash flows from operating activities
Net cash provided by operating activities amounted to ¥9,347 million, due primarily to ¥8,680 million in income
before income taxes, ¥3,894 million in depreciation, and ¥2,360 million in income taxes paid.
Cash flows from investing activities
Net cash used in investing activities amounted to ¥1,850 million, due primarily to cash outflows of ¥1,772
million in purchase of property, plant, and equipment.
Cash flows from financing activities
Net cash provided by financing activities amounted to ¥4,464 million, due primarily to cash outflows of ¥1,533
million in dividends paid by parent company, cash outflows of ¥1,263 million in redemption of bonds with
subscription rights to shares, cash outflows of ¥1,002 million in purchase of treasury shares, and cash outflowsof ¥595 million in repayment of short-term loans payables.
(4) Outlook
The economic outlook for the future is expected to pick up thanks to the vaccination effect and the economic

5

measures taken by each country, however, it is expected that the severe situation will continue due to concerns
over the impact of the resurgence of COVID-19 infection on economic activities.
Under the situation, Osaka Soda Group has formulated the Seventh Medium-Term Business Plan (Fiscal 2021
-2022) “EMPOWER THE NEXT-22” based on the assumption that the impact of COVID-19 infection willcontinue for the time being.
Building a foundation for business resilience
We will invest in renewal and reduce costs to improve production efficiency in our soda electrolysis and AC/EP
businesses since our founding, thereby strengthening our business foundation to generate stable earnings.
And we will develop acrylic rubber, non-phthalate allylic resins, compounds and pharmaceutical refining
materials as our core businesses, and expand and strengthen our functional chemicals, mainly synthetic
rubber and synthetic resins, as well as health care, mainly pharmaceutical bulk and intermediates, andpharmaceutical refining materials, as highly profitable businesses.
Promotion of market-in-type development
The business divisions will take the lead in accurately grasping customer needs, planning new products
together with the R&D division, and quickly launching them. In the field of environment and energy, we will
promote the development of materials that contribute to higher lithium-ion battery capacity, longer life, andimproved safety. In the field of mobility, we will focus on developing new materials that support the electrification
and automation of automobiles. In the field of information and communications, we will continue to develop
materials that contribute to the development of next-generation 5G and 6G communications technologies. In
the field of health and healthcare, we will strengthen our biopharmaceutical manufacturing and purification
technologies in response to the changing modality of pharmaceuticals.
Efforts to achieve the SDGs
In addition to contributing to the development of existing products, we will reflect the SDGs in our development
policies for new products and contribute to the realization of a sustainable global environment through ouroverall corporate activities.
Reforming corporate culture and organizational culture
Under the new mission and vision, we reform our business system and personnel system. And we work toraise our organizational strength and human resources capabilities with the aim of creating a highly productive
corporate culture through business reform activities that span all levels of the organization.
The earnings forecast for fiscal 2022 will be ¥75,500 million in net sales, ¥9,000 million in operating income,¥9,700 million in ordinary income, and ¥6,800 million in net income attributable to owners of parent. The

consolidated financial forecast reflects the application of the “Accounting Standard for Revenue
Recognition” (ASBJ Statement of No.29) which is adopted from the beginning of the fiscal year ending
March 31, 2022.
5. 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.

6

6.

CONSOLIDATED FINANCIAL STATEMENTSCONSOLIDATED 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
Buildings and structures
Accumulated depreciation
Buildings and structures - Net
Machinery, equipment, and vehicles
Accumulated depreciation
Machinery, equipment, and vehicles - Net
Land
Lease assets-PPE
Accumulated depreciation
Lease assets, net-PPE
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, net
Less: Allowance for doubtful accounts
Total investment and other assets
7

March 31, 2020

March 31, 2021

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

17,436
26,6553,456
14,499
6,581
1,661
2,219
1,435
(69)
73,876

17,097(10,364)
6,732
60,448(50,338)
10,110
2,305
1,026
(221)
805
1,454
4,051
(3,605)445
21,853

17,401(10,904)
6,496
61,838(52,918)
8,920
2,305
1,026
(284)
741
1,707
4,119
(3,753)366
20,536

681
231
115
1,027

498
184
99
782

16,803
29
368
903
(6)
18,09922,965
24
325
869
(6)
24,178

Total noncurrent assets
Total assets

40,980110,851

45,496
119,373

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
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
Non-controlling interests
Total net assets
Total net assets and liabilities

8

March 31, 2020

March 31, 2021

13,159
7,767
1,278
911
3,543
26,66013,046
7,172
1,492
884
4,223
26,81810,000
436
281
3,265
1,085
15,06941,730

8,737
2,463
2,705
1,415
15,322
42,141

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

15,87014,38846,387(7,669)68,977

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

8,292
48
(13)
(80)
8,247
7
77,232
119,373

CONSOLIDATED STATEMENTS OF INCOME(Millions of yen)

Net sales
Cost of sales
Gross profit
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 gains
Other
Total non-operating income
Non-operating expenses
Interest expenses

Year Ended
March 31, 2020
March 31, 2021
105,477
97,26682,941
76,282
22,536
20,984
12,837
12,643
9,698
8,341
9
437
33

16
457
-

341
821

93
143
711

94
-

89
97

Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Loss on valuation of shares of subsidiaries andassociates
Other
Total extraordinary loss
Income before income taxes

75
28
198
10,321

28
214
8,838

0
178
179

0
0

298
503
243

158
-

3
1,049
9,450

158
8,680

Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Profit attributable to non-controlling interests
Net income attributable to owners of parents

2,741
202
2,944
6,506

2,585
44
2,630
6,050
(0)
6,050

Share of loss of entities accounted for using equity
method6,506

9

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
Re-measurements of defined benefit plans
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners ofYear ended
March 31, 2020
March 31, 2021
6,506
6,050
(1,603)
6
(4)
(190)
(0)
(1,792)
4,714

4,113
40
(22)
437
2
4,472
10,622

4,714

10,623-(0)parentComprehensive income attributable to non-controllinginterests

10

STATEMENTS OF CHANGES IN NET ASSETS(Millions of yen)

Shareholder’s Equity
Capital Stock
Balance at beginning of current period
Changes during the fiscal year
Issuance of new shares
Total changes of items during the period
Balance at end of current period
Capital Surplus
Balance at beginning of current period
Changes during the fiscal year
Issuance of new shares
Disposal of treasury shares
Total changes of items during the period
Balance at end of current period
Retained earnings
Balance at beginning of current period
Changes during the fiscal year
Dividends from surplus
Net income attributable to shareholders of the parent
Total changes of items during the period
Balance at end of current period
Treasury Stock
Balance at beginning of current period
Changes during the fiscal year
Purchase of treasury shares
Disposal of treasury shares
Total changes of items during the period
Balance at end of current period
Total shareholders' equity
Balance at beginning of current period
Changes during the fiscal year
Issuance of new shares
Dividends from surplus
Net income attributable to shareholders of the parent
Purchase of treasury shares
Disposal of treasury shares
Total changes of items during the period
Balance at end of current period

11

March 31, 2020

March 31,2021

15,15015,870720
720
15,87015,87013,667

14,387720
720
14,3871
1
14,38836,942

41,870(1,579)6,506
4,927
41,870(1,533)6,050
4,517
46,387(6,679)(6,682)(3)(3)(6,682)(1,000)13(987)(7,669)59,08065,446

1,441(1,579)
6,506
(3)
6,365
65,446(1,533)6,050(1,000)14
3,531
68,977

STATEMENTS OF CHANGES IN NET ASSETS (Continued)(Millions of yen)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at beginning of current period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at end of current period
Deferred gains or losses on hedges
Balance at beginning of current period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at end of current period
Foreign currency translation adjustment
Balance at beginning of current period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at end of current period
Re-measurements of defined benefit plans
Balance at beginning of current period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at end of current period
Total accumulated other comprehensive income
Balance at beginning of current period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at end of current period
Non-controlling interests
Net changes of items other than shareholder’s equity
Total changes of items during the period
Balance at end of current period
Total net assets
Balance at beginning of current period
Issuance of new shares
Dividends from surplus
Net income attributable to shareholders of the parent
Purchase of treasury shares
Disposal of treasury shares
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at end of current period

12

March 31, 2020

March 31,2021

5,781(1,603)(1,603)
4,177

4,177
(4,114)(4,114)
8,292

1
6
6
8

8
40
40
48

11
(4)
(4)
7

7
(20)
(20)
(13)

(327)
(190)
(190)
(518)

(518)
437
437
(80)

5,467
(1,792)(1,792)
3,674

3,674
4,572
4,572
8,247

-

7
7
7

64,548
1,441(1,579)6,506(3)(1,792)
4,573
69,121

69,121(1,533)6,050(1,000)
14
4,580
8,111
77,232

STATEMENTS OF CASH FLOWS(Millions of yen)

Cash flows from operating activities
Income before Income Taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in provision for directors' retirement
benefits
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss on retirement of non-current assets
Loss (gain) on sales of non-current assets
Subsidy income
Loss (gain) on sales of short-term and long-term
investment securities
Loss on valuation of shares of subsidiaries andassociates
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes
Loss (gain) on valuation of short-term and long-term
investment securities
Share of loss (profit) of entities accounted for using
equity method
Other, net
Sub totalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities

13

March 31, 2020

March 31, 2021

9,450
3,626
182
(39)
22
256
(369)

8,680
3,894
182
(31)
(27)
(560)
(281)

(446)
94
37
298
2
(144)
(178)

(474)
89
(15)
158
(0)
-

243

-

4,027
(13)
(2,423)(342)
503(1,374)
71
(114)
(65)
-

(33)

97

(909)
13,847458(100)(3,868)
10,336

1,082
11,312484(89)(2,360)9,347

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

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from redemption of securities
Purchase of investment securities
Proceeds from sales of investment securities
Subsidies received
Other, net
Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Redemption of bonds with subscription rights to shares
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by 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
Cash and cash equivalents at end of period

14

March 31, 2020

March 31, 2021

(3,474)
17
(33)
(500)
(320)
301
144
(226)
(4,092)(1,772)
0
(58)
500
(516)
177
(181)
(1,850)(23)(3)(1,579)(71)(1,677)(43)(595)(1,263)(1,002)(1,533)(69)(4,464)4

4,523
24,37628,8993,036
28,89931,936

7. Notes to the Consolidated Financial Statements(1) Notes regarding the going concern assumption: None
(2) Segment information
Year ended March 31, 2020

(Millions of yen)

Basic

Functional

Housing

Consolidated

ChemicalChemicalFacilities

Products

Products

and Others

Total

Adjustments*1

operatingincome *2

Net sales
External sales
Intersegment sales
or reclassifications
Total
Segment income
Segment assets

48,263

41,63915,574105,477－

105,477

21

96

716

835

(835)

－

48,28541,735

106,312(835)

105,477

4,854
37,737

5,537
35,119

16
,291
475
5,479

10,86778,336(1,168)32,514

9,698
110,851

2,025

1,196

58

3,279

347

3,626

4

56

-

61

121

182

-

1,011

-

1,011

-

1,011

1,599

2,000

106

3,706

134

3,840

Other items
Depreciation
Amortization of
goodwill
Investment toentities accounted
for using equity
methodIncrease of current
and noncurrent
assets
Notes:(1)

Adjustments of segment income of ¥(1,168) million are corporate expenses not allocated to reportable segments.
Corporate expenses are mainly expenses not attributable to a reporting segment and related to fundamental
research and development as well as administrative departments.

(2)

Adjustments of segment assets of ¥32,514 million are corporate assets of ¥32,641 million, which are not allocatedto reportable segments. Corporate assets are mainly a parent company asset, those are surplus operating funds(cash and short term securities), long term investment capital (investment securities, etc.), and related toadministrative, research and development departments.

(3)

Adjustments of Increase of current and noncurrent assets of ¥134 million are for administrative department andresearch and development department investment.

(4)

Segment income is adjusted to operating income of consolidated statement of income.

15

Year ended March 31, 2021

(Millions of yen)

Basic

Functional

Housing

Consolidated

ChemicalChemicalFacilities

Products

Products

and Others

Total

Adjustments *1

operatingincome *2

Net sales
External sales
Intersegment sales
or reclassifications
Total
Segment income
Segment assets

42,41640,744

14,106

97,266－

97,266

28

153

654

836

(836)

－

42,445
3,555
39,73940,897
5,780
34,49814,760
254
6,955

98,103
9,590
84,193(836)(1,249)35,18097,266
8,341
119,373

2,266

1,199

65

3,531

363

3,894

4

56

-

61

121

182

-

1,118

-

1,118

-

1,118

1,504

526

95

2,126

261

2,388

Other items
Depreciation
Amortization of
goodwill
Investment toentities accounted
for using equity
methodIncrease of current
and noncurrent
assets
Notes:(1)

Adjustments of segment income of ¥(1,249) million are corporate expenses not allocated to reportable segments.
Corporate expenses are mainly expenses not attributable to a reporting segment and related to fundamental
research and development as well as administrative departments.

(2)

Adjustments of segment assets of ¥35,180 million are corporate assets of ¥35,283 million, which are not allocatedto reportable segments. Corporate assets are mainly a parent company asset, those are surplus operating funds(cash and short term securities), long term investment capital (investment securities, etc.), and related toadministrative, research and development departments.

(3)

Adjustments of Increase of current and noncurrent assets of ¥261 million are for administrative department andresearch and development department investment.

(4)

Segment income is adjusted to operating income of consolidated statement of income.

16

(3) Per share information
Net assets per share

Yen

Earnings per share

Yen

Diluted earnings per share

Yen

March 31, 2020

March 31, 2021

2,912.98
276.14244.16

3,310.56
257.37230.23

Notes: The calculation of earnings per share and diluted earnings per share are as shown below.

March 31, 2020

March 31, 2021

Millions of yen

6,506

6,050

Millions of yen－－

Millions of yen

6,506

6,050

Thousands of shares

22,56323,510Adjustment to net income

Millions of yen

Increase of common stockThousands of shares

－
3,086

－
2,771

Thousands of shares(3,086)(2,771)

Earnings per share
Net income
Amount not attributable to owners ofcommon stock
Net income related to owner ofcommon stock
Weighted average number ofcommon stock
Diluted earnings per share(Bonds with subscription rights toshares)
Details of shares not included in
calculation of fully diluted net income－

per share due to non-dilutive effect(4) Notes regarding subsequent events: Not applicable17－