Note: This document has been translated from the Japanese original for reference purposes only. In the event of any discrepancy
between this translated document and the Japanese original, the original shall prevail.

February 9, 2024

Consolidated Financial Results
for the Nine Months Ended December 31, 2023
(Under Japanese GAAP)
Company name:OSAKA SODA Co., Ltd.
Listing:
Tokyo Stock Exchange
Securities code:
4046
URL:
http://www.osaka-soda.co.jp
Representative:
Kenshi Terada, Representative Director, President and Chief Executive Officer
Inquiries:
Toru Imamura, Executive Officer, General Manager, Administration Division
Telephone:+81-6-6110-1560
Scheduled date to file quarterly securities report:
February 13, 2024
Scheduled date to commence dividend payments:―
Preparation of supplementary material on quarterly financial results: None
Holding of quarterly financial results briefing:
None(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the Nine months ended December 31, 2023 (from April 1, 2023 to December 31, 2023)(1) Consolidated operating results (cumulative)
Net sales
Nine months ended(Percentages indicate year-on-year changes.)

Operating profit

Profit attributable toowners of parent

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

December 31, 2023

70,215

(9.6)

7,599

(45.5)

8,594(42.5)

5,295(48.8)

December 31, 2022

77,70519.0

13,951

41.8

14,95640.7

10,33436.9

Note: Comprehensive income

For the Nine months ended December 31, 2023:
For the Nine months ended December 31, 2022:

Basic earnings
per share
Nine months ended¥7,829 million¥11,633 million[(32.7)%][89.3 %]

Diluted earnings
per share
Yen

Yen

December 31, 2023

208.16－

December 31, 2022

422.93－(2) Consolidated financial position
Total assets
As of

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

December 31, 2023

144,646

105,094

72.7

March 31, 2023

138,029

99,543

72.1

Reference:

EquityAs of December 31, 2023:
As of March 31, 2023:¥105,086 million¥99,535 million%

2. Cash dividends
Annual dividends per shareFirst quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
March 31, 2023
Fiscal year ending
March 31, 2024

－

45.00

－

45.00

Fiscal year ending
March 31, 2024
(Forecast)Fiscal year-end

Total

Yen

Yen

－

45.00

90.00

－

45.00

90.00

Note: Revisions to the forecast of cash dividends most recently announced: None

3. Consolidated financial results forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes.)
Net sales
Millions of yen

Operating profit%

Millions of yen

Ordinary profit% Millions of yen

Profit attributable toowners of parent% Millions of yen

Full year
105,000
0.8
10,000 (35.7)
11,100 (35.3)
Note: Revisions to the forecast of consolidated financial results most recently announced: None

7,500

Basic earnings
Per share%Yen(29.1)

294.81

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in the change
in scope of consolidation): None
(2) Adoption of accounting treatment specific to the preparation of quarterly consolidated financial statements:
None(3) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(4) Number of issued shares (common shares)(i)

Total number of issued shares at the end of the period (including treasury shares)
As of December 31, 2023

26,732,017 shares

As of March 31, 2023

26,732,017 shares(ii) Number of treasury shares at the end of the period
As of December 31, 2023

1,290,228 shares

As of March 31, 2023

1,291,509 shares(iii) Average number of shares outstanding during the period (cumulative from the beginning of the fiscal
year)
Nine months ended December 31, 2023

25,441,266 shares

Nine months ended December 31, 2022

24,436,157 shares* Quarterly financial results reports are exempt from quarterly review conducted by certified public accountants
or an audit corporation.
* Proper use of earnings forecasts, and other special matters
In this document, statements other than historical facts are forward looking statements that reflect theCompany’s plans and expectations. These forward-looking statements involve risks, uncertainties and otherfactors that may cause our actual results and achievements to differ from those anticipated in these statements.
Please refer to “1. Qualitative Information Concerning Results for the Nine months ended December 31, 2023
(3) Analysis of Forward-looking Statement, Including Consolidated financial results Forecasts” on page 4 of
the attached documents.

(Attached Documents)
INDEX
1. Qualitative Information Concerning Results for the Nine months ended December 31, 2023
(1) Analysis of Operating Results(2) Analysis of Financial Position(3) Analysis of Forward-looking Statement, Including Consolidated financial results Forecasts

2
2
3
4

2. Quarterly Consolidated Financial Statements and Notes to Quarterly Consolidated Financial
Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(3) Notes to Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)(Notes on Major Changes in Shareholders’ Equity(Segment Information and Other Items)

5

-1-

5
7
8
8
8
9

1. Qualitative Information Concerning Results for the Nine months ended December 31, 2023
(1) Analysis of Operating Results
For the first nine months of the consolidated fiscal year, the Japanese economy continued to show
signs of recovery, including an increase in inbound demand and an improvement in the state of employment, associal and economic activities moved toward normalization in line with the easing of restrictions on activities
imposed as a result of COVID-19. Circumstances remained difficult, however, owing to the impact of factors suchas rising raw material and fuel prices, the prolonging of the situation in Ukraine, increasing tensions in the Middle
East, concerns regarding the future of the Chinese economy, and the risk that a downturn of overseas economies
amidst continued global monetary tightening could put downward pressure on the domestic economy.
In light of these circumstances, our group has been steadily implementing specific measures in line with the basic
policies set forth in our new medium-term management plan, Shape the Future-2025 (FY2023 to FY2025), which
was announced in November of last year. The three basic policies are continuous strengthening of our base inexisting businesses, strengthening of new product creation capabilities, and promotion of sustainability
management.
In terms of the “continuous strengthening of our base in existing businesses,” we will work to enhance ourbusiness base by generating stable cash flows and actively investing in growth areas. In the Basic chemicals
business, production of Allyl Chloride was partially suspended due to a recurrence of problems with the Allyl
Chloride main manufacturing equipment. However, as of November 21, production has recovered to about 70%,
and operation is currently stable. In the Functional chemicals business, despite declining demand for major
products, we were able to steadily increase the sales volume of Acrylic Rubber by developing new markets. In the
Healthcare business, following the decision to construct new manufacturing facilities at the Matsuyama Plant, it
was also decided to construct new manufacturing facilities at the Amagasaki Plant as a second phase of expansion
in order to meet the growing demand for pharmaceutical purification materials for diabetes treatments and therapidly expanding obesity treatments. Investment plans for pharmaceutical purification materials are progressing
smoothly, with construction at the Matsuyama Plant beginning in November of last year and completion
scheduled for September 2024, and construction at the Amagasaki Plant beginning in January 2024 withcompletion scheduled for fiscal 2026. The growth strategy of the Healthcare business was highly evaluated, andour price-to-book (P/B) ratio was significantly higher than the average for TSE Prime companies (exceeding a P/Bratio of 2.0 as of the end of December 2023).
In terms of the “strengthening of new product creation capabilities,” the development of materials for next
generation storage batteries, such as ultra-high ionic conductive polymers for all-solid batteries, which wereselected as a NEDO Green Innovation Fund project, is progressing as originally planned. We have already begun
construction of a battery research building as a new research facility, and will steadily develop our products tobecome the next global niche-top products.
In terms of the “promotion of sustainability management,” as an appropriate response to Japan’s Corporate
Governance Code, in addition to taking steps to comply with TCFD recommendations and calculating GHG
emissions, we have created a new integrated report. Additionally, we are continuing revision of the personnel
system for managers which started last fiscal year and also revised the personnel system for general employees in
April of last year, all in an effort to “grow together with our employees as a company” as set forth in our Vision
Statement. Under the new personnel systems, we will work to further spread business reform activities, improve
employee engagement, and nurture the next generation of human resources.
Due in part to the manufacturing equipment problems at the Mizushima Plant (net sales: ¥4,600 million, operating
income: ¥4,600 million), net sales for the first nine months of the consolidated fiscal year were ¥70,215 million, adecrease of 9.6% year on year. In terms of profit, operating profit decreased 45.5% year on year to ¥7,599 million,
ordinary profit decreased 42.5% year on year to ¥8,594 million, and profit attributable to owners of parent
decreased 48.8% year on year to ¥5,295 million.
As the Healthcare business has been steadily growing as our third profitable business, starting from the first threemonths of the consolidated fiscal year we are changing our system to four reportable segments, namely, Basic
Chemicals, Functional Chemicals, Healthcare, and Trading and Others. Accordingly, in the following year-on-yearcomparisons, figures for the same period of the previous fiscal year have been reclassified to the post-change
segment classifications.

-2-<Basic Chemicals>
Despite a decrease in the sales volume due to the manufacturing equipment problems at the Mizushima Plant and a
decline in demand, net sales of Chlor-Alkali products increased due in part to a rise in product prices as a result of
increases in raw material and fuel prices. Net sales of Epichlorohydrin decreased due to a decline in demand for
epoxy resins and softer overseas market conditions, as well as sales adjustments resulting from the manufacturing
equipment problems.
As a result of the above, net sales in the Basic chemicals business decreased 15.9% year on year to ¥27,229
million.
<Functional Chemicals>
In the synthetic rubbers business, net sales of Epichlorohydrin Rubber increased due to a recovery in automobile
production. Net sales of Acrylic Rubber increased as it was adopted for new applications in Japan and overseas.
Sales volume of DAP resin increased due to new demand in China for UV ink applications, but net sales decreased
due to sluggish demand for insulating varnish applications. Sales of Allyl Ethers decreased due to a decline indemand for Silane coupling agents mainly for paint applications in Europe, the Americas, and China, as well assoftening market conditions.
As a result of the above, net sales in the Functional chemicals business decreased 6.3% year on year to ¥21,397
million.
<Healthcare>
Net sales of pharmaceutical purification materials increased as demand steadily increased for applications indiabetes treatments in Europe, the Americas, and Asia. Net sales of active pharmaceutical ingredients (APIs) andtheir intermediates increased due to expanded sales of nucleic acid drug substances, anti-ulcer drug intermediates,
and insomnia treatment drug intermediates.
As a result of the above, net sales in the Healthcare business increased 7.9% year on year to ¥8,220 million.
<Trading and Others>
While net sales for consumer products increased thanks to strong sales, net sales decreased due to sluggish sales ofelectronic materials and automotive products, mainly glass fiber.
As a result of the above, net sales in the Trading and others business decreased 10.0% year on year to ¥13,367
million.
(2) Analysis of Financial Position(Assets)
Current assets were ¥92,262 million, an increase of 2.9% compared to the end of the previous fiscal year. This was
mainly due to an increase of ¥1,107 million in cash and deposits and of ¥1,913 million in electronically recordedmonetary claims.
Noncurrent assets were ¥52,384 million, an increase of 8.3% compared to the end of the previous fiscal year. Thiswas mainly due to an increase of ¥677 million in property, plant and equipment, and an increase of ¥3,204 million
in investment securities.
As a result, total assets at the end of the first nine months of the consolidated accounting period were ¥144,646
million, an increase of 4.8% compared to the end of the previous fiscal year.
(Liabilities)
Current liabilities were ¥32,385 million, an increase of 0.2% compared to the end of the previous fiscal year. Thiswas mainly due to an increase of ¥3,014 million in notes and accounts payable, and a decrease of ¥3,103 million inincome taxes payable.
Noncurrent liabilities were ¥7,166 million, an increase of 16.1% compared to the end of the previous fiscal year.
This was mainly due to an increase of ¥1,175 million in deferred tax liabilities.
As a result, liabilities at the end of the first nine months of the consolidated accounting period were ¥39,552
million, an increase of 2.8% compared to the end of the previous fiscal year.

-3-

(Net assets)
Total assets at the end of the first nine months of the consolidated accounting period were ¥105,094 million, an
increase of 5.6% compared to the end of the previous fiscal year. This was mainly due to increases of ¥3,006
million in retained earnings and ¥2,240 million in unrealized gains on other securities.
(3) Analysis of Forward-looking Statement, Including Consolidated financial results Forecasts
There is no change to the earnings forecast for the fiscal year ending March 31, 2024, which was announced
on May 11, 2023. If there are any changes in the future, we will disclose them appropriately.

-4-2. Quarterly Consolidated Financial Statements and Notes to Quarterly Consolidated Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, andcontract assets
Electronically recorded monetary claims operating
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Land
Leased assets, net
Construction in progress
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Long-term loans receivable
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5-

As of December 31, 2023

12,844

13,95129,29029,526

3,826

5,739

23,998
9,516
2,602
3,965
3,599
(3)
89,64023,998
9,219
2,568
5,695
1,565
(3)
92,262

6,721
11,239
2,304
644
3,730
462
25,103

7,284
12,111
2,301
638
3,047
397
25,780

217
102
320
639

175
110
639
925

21,302
677
14
657
(5)
22,64548,389138,029

24,506
470
12
711
(22)
25,67852,384
144,646(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Current portion of long-term borrowings
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets-6-

As of December 31, 2023

14,397
7,172
3,585
928
58
6,168
32,31017,411
7,172
481
477
68
6,774
32,385

434
838
1,709
2,826
152
214
6,175
38,485

433
821
2,884
2,697
150
179
7,166
39,552

15,871
17,00962,741(3,811)
91,812

15,871
17,01465,747(3,810)94,823

7,339

9,580

(101)
676
(190)

(84)
934
(166)

7,723

10,262

8
99,543138,0298
105,094
144,646

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)
Nine months ended
December 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using
equity method
Foreign exchange gains
Insurance claim income
Subsidy income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on abandonment of inventories
Loss on tax purpose reduction entry of noncurrent assets
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Gain on sale of non-current assets
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on retirement of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitLoss attributable to non-controlling interests
Profit attributable to owners of parent-7-

Nine months ended
December 31, 2023

77,70553,35024,355
10,404
13,951

70,21552,07818,137
10,537
7,599

10
557

18
637

2

15

450
12
50
106
1,189

227
0
318
111
1,327

67
93

72
－

－

233

23
184
14,956

26
332
8,594

－
－
－

180
0
181

－
141
141
14,814
4,188
291
4,479
10,334(0)
10,334

430
228
659
8,116
2,468
361
2,830
5,286
(9)
5,295

Consolidated statements of Comprehensive Income(Millions of yen)
Nine months ended
December 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests(3) Notes to Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable(Notes on Major Changes in Shareholders’ Equity)
Not applicable-8-

Nine months ended
December 31, 2023

10,334

5,286

617

2,240

(206)
838

17
235

25

23

23

25

1,299
11,633

2,542
7,829

11,627

7,835

5

(5)

(Segment Information and Other Items)

The Nine months ended December 31, 2022 (from April 1, 2022 to December 31, 2022)(Millions of yen)Basicchemicals

Functional
chemicals

Healthcare

Trading
andOthers

Total

Adjustments*1

Consolidated*2

Net salesJapan
26,1937,299
2,740
12,048 48,282
－
China
7
6,749
1,099
1,962
9,818
－
Asia
4,368
4,052
1,272
761 10,453－
Europe
2,924
1,581
45
5,123
－
571
Others
1,247
1,813
924
43
4,028
－
Revenue fromContracts with
32,38822,838
7,617
14,861 77,705－
Customers
Other Revenue
－
－
－
－
－
－
External sales
32,38822,838
7,617
14,861 77,705－
Intersegment
sales or
0
528
－
3,031
3,561
(3,561)
reclassifications
Total
32,38923,367
7,617
17,893 81,266(3,561)
Segment income
4,790
5,823
3,622
648 14,884(933)
Notes:(1)
Adjustments of segment income of ¥ (933) million are corporate expenses not allocated toreportable segments. Most of above-mentioned corporate expenses are not attributable to areporting segment and related to fundamental research and development.
(2)
Segment income is adjusted to operating income of consolidated statement of income.

-9-48,282
9,818
10,453
5,123
4,028
77,705－77,705－77,705
13,951

The Nine months ended December 31, 2023 (from April 1, 2023 to December 31, 2023)(Millions of yen)Basicchemicals

Functional
chemicals

Healthcare

Trading
andOthers

Total

Adjustments*1

Consolidated*2

Net salesJapan
26,193
6,312
2,872
11,666 47,044－
47,044
China
－
6,562
841
1,171
8,575
－
8,575
Asia
717
4,451
1,330
478
6,977
6,977
－
Europe
195
2,207
2,399
43
4,846
－
4,846
Others
122
1,864
776
7
2,771
－
2,771
Revenue fromContracts with
27,22921,3978,220
13,367 70,215－
70,215
Customers
Other Revenue
－
－
－
－
－
－
－
External sales
27,22921,3978,220
13,367 70,215
70,215－Intersegment
sales or
0
909
－
2,207
3,117
(3,117)－
reclassifications
Total
27,23022,307
8,220
15,575 73,333(3,117)70,215
Segment income
20
3,325
4,184
976
8,506
(906)
7,599
Notes:(1)
Adjustments of segment income of ¥ (906) million are corporate expenses not allocated to reportablesegments. Most of above-mentioned corporate expenses are not attributable to a reporting segment andrelated to fundamental research and development.
(2)
Segment income is adjusted to operating income of consolidated statement of income.
Changes in Reportable Segments(Changes in Reportable Segment Classification)
Starting from the first three months of the accounting period, the Healthcare business, which was previously
included in the Functional Chemicals segment, has been spun off as its own new segment in line with businessexpansion. In addition, in order to better understand the actual state of business performance, reportable segments
have been changed from the three categories of Basic Chemicals, Functional Chemicals, and Housing Facilities
and Others, to the four categories of Basic Chemicals, Functional Chemicals, Healthcare, and Trading and Others.
Furthermore, in order to better evaluate and manage the performance of each reportable segment, we have revised
the allocation method of common expenses and changed the calculation method of profit or loss for the reportablesegments. The segment information for the Nine months of the pervious consolidated fiscal year is disclosed
based on the post-change classification of the reportable segments.

- 10 -