(Reference Translation)
Aug 5, 2016

Osaka Soda Co., Ltd.
CONSOLIDATED FINANCIAL RESULTS
For the quarterly period ended June 30, 2016
(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:

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 securities report:

Aug 8, 2016

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, 2016

June 30, 2015

Change *Change *Net sales

Millions of yen

22,686(8.7)%

24,853

3.4%

Operating income

Millions of yen

1,606

25.4%

1,281

6.3%

Ordinary income

Millions of yen

945(40.8)%

1,596

25.7%

Net income

Millions of yen

513(49.6)%

1,018

33.7%

Comprehensive incomeMillions of yen

(193)

- %

1,385(0.1)%

Net income per share

Yen

4.87

-

9.67

-

Diluted net income per share

Yen

4.04

-

8.03

-

Note: Percent changes for three months are year-on-year comparisons.
(2)Financial Condition
June 30, 2016

March 31, 2016

Total assets

Millions of yen

93,55997,027

Net assets

Millions of yen

47,57548,296Equity *Millions of yen

47,57548,296

%

50.9

49.8

Equity ratio

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

12. Dividends
Year ending Mar. 31, 2017

(Forecast)Year ending Mar. 31, 2017

Year ended Mar. 31, 2016－－

End of first quarterEnd of second quarter

5.00

5.00

End 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
First half

Full-year
Change*Change*Net sales

Millions of yen

50,4000.1%

103,000

0.9%

Operating income

Millions of yen

3,100

0.6%

6,500

0.9%

Ordinary income

Millions of yen

3,260

0.1%

6,800

5.6%

Net income

Millions of yen

2,050

3.7%

4,300

19.2%

Yen

19.46-

40.82-

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, 2016:

111,771,671

shares

As of March 31, 2016:

111,771,671

shares

As of June 30, 2016:

6,420,299

shares

As of March 31, 2016:

6,419,632

sharesThree months ended June 30, 2016

105,351,694

sharesThree months ended June 30, 2015

105,359,383

shares2) Number of treasury shares at the end of period

3) Average number of shares outstanding in each period2* 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 three months ended June 30, 2016, Japan’s economy has continued its moderate recovery trend
against the background of steady improvements in the employment and income situation. However, the outlook
remains uncertain due mainly to the United Kingdom’s vote to leave the European Union and slowing down ofemerging economies as well as concern about the decline in corporate profits reflecting in sharp appreciationof the yen.
Under the circumstances, net sales were ¥22,686 million, a decrease of 8.7% compared to the same periodof fiscal 2015. Operating income was ¥1,606 million due mainly to business growth in Functional ChemicalProducts, an increase of 25.4% compared to the same period of fiscal 2015. Ordinary income was ¥945 million
due mainly to the effect of foreign exchange loss, a decrease of 40.8% compared to the same period of fiscal
2015. Net income attributable to owners of parent was ¥513 million, a decrease of 49.6% compared to thesame period of fiscal 2015.
Osaka Soda Group strengthened our earnings structure that can hardly affected by environmental changes,
which is implemented by expansion of high value added business centering on healthcare related businessand synthetic resins and rubber business, and enhancement of competitiveness through cost down on ChlorAlkali business and Allyl Chloride and Epichlorohydrin business. As a result, compared to the previous fiscal
period, operating income increased through strengthening our earnings base despite a decrease in net sales.
Basic Chemical Products
In Chlor-Alkali, net sales decreased due to the impact of weak market conditions.
In Epichlorhydrin, net sales decreased due mainly to negative effects in sales prices affected by downfall inraw material and fuel prices.
As a result, net sales in Basic Chemical Products were ¥9,845 million, a decrease of 9.8% 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 Europe as well as new customer development focused on peptide drugs
purification in Asian market, particularly China and India.
In Active Pharmaceutical Ingredients and their Intermediates, net sales increased due to continued steadysales in Antiulcer Drug, Antiviral Drug Intermediate, and enzymes in foods production.
In Diallyl Phthalate Resin, net sales increased due to continued steady sales to domestic market in UVprintings as well as an increase in export sales to Europe.
In Allyl Ethers, net sales increased due to continued steady export sales to Europe and China.
In Epichlorhydrin Rubber, net sales decreased due to the effect of yen appreciation despite volume growthin export sales to China.
As a result, net sales in Functional Chemical Products were ¥8,728 million, a decrease of 4.5% compared tothe same period of fiscal 2015.
Housing Facilities and Others
Net sales were ¥4,112 million, a decrease of 14.4% compared to the same period of fiscal 2015, due to sluggish
sales in DAP Decorative Laminate and Household materials and Components.

4(2) Financial Condition
AssetsCurrent assets were ¥54,719 million, a decrease of 4.2% since March 31, 2016. The decrease was due
primarily to a decrease of ¥2,699 million in short term investment securities.
Noncurrent assets were ¥38,840 million, a decrease of 2.6% since March 31, 2016. The decrease was due
primarily to a decrease of ¥913 million in investment securities.
As a result, Total assets were ¥93,559 million, a decrease of 3.6% since March 31, 2016.
Liabilities
Current liabilities were ¥28,850 million, a decrease of 5.9% since March 31, 2016. The decrease was due
primarily to a decrease of ¥648 million in notes and accounts payable-trade and a decrease of ¥1,235 million
in income taxes payable.
Noncurrent liabilities were ¥17,133 million, a decrease of 5.1% since March 31, 2016. The decrease wasdue primarily to a decrease of ¥600 million in long term loans payable.
As a result, Total liabilities were ¥45,983 million, a decrease of 5.6% since March 31, 2016.
Net assets
Net assets were ¥47,575 million, a decrease of 1.5% since March 31, 2016.
(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, 2016” dated on 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 Recovery of Deferred Tax Assets” (Accounting Standards Board of Japan
Implementation Guidance No.26, issued on March 28, 2016).

56. Consolidated Financial Statements

CONSOLIDATED 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
Other, net
Less: Allowance for doubtful accounts
Total investment and other assets
Total noncurrent assets
Total assets

6

March 31, 2016

June 30, 2016

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

13,30727,423
4,299
5,789
1,299
1,683
919
(3)
54,719

11,098
9,259
20,357

11,281
8,960
20,242

923
269
1,192

885284
1,169

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

16,2401,763(575)
17,427
38,84093,559

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 liabilityOther 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

7March 31, 2016

June 30, 2016

12,993
8,880
2,440
1,338
709
4,30730,669

12,344
8,880
2,430
103
364
4,727
28,85010,000
2,960
533
3,063
1,505
18,062
48,731

10,000
2,360
510
3,060
1,202
17,13345,983

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

10,882
9,399
24,683(1,667)43,2985,500(82)45(479)4,983
48,296
97,0274,796(80)
26(464)
4,277
47,57593,559

CONSOLIDATED STATEMENTS OF INCOME(Millions of yen)Three Months Ended
June 30, 2015
June 30, 2016
24,853
22,686
20,79818,191
4,054
4,495

Net sales
Cost of sales
Gross profit

2,7731,281

2,888
1,606

8
168
151
11340

7178－
32219

25－
026
1,596

18
848
13880
945

1818－－

94
94
1,520

161
161
784

Net income

259
242
501
1,018

91
179
271
513

Net income attributable to non-controlling interests
Net income attributable to owners of parent－
1,018－
513

Selling, general, and administrative expenses
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 incomeExtraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Total extraordinary loss
Income before income taxes
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
Total other comprehensive income
Comprehensive incomeComprehensive income attributable to:
Owners of parent
Non-controlling interests

9Three Months Ended
June 30, 2015
June 30, 2016
1,018
513369(5)(2)
5366
1,385(704)2(19)
14(706)(193)

1,385－(193)－7. Notes to the Consolidated Financial Statements(1) Notes regarding the going concern assumption:

None

(2)

NoneNotes on significant changes in shareholders’ equity:(3) Segment information
Three months ended June 30, 2015

(Millions of yen)

Basic

Functional

Housing

Consolidated

ChemicalChemicalFacilities

ProductsProductsand Others

TotalAdjustments*1

operatingincome *2

Net sales
External sales

10,912

9,137

4,803

24,853－24,85330

109

113(113)－

10,915

9,137

4,913

24,966(113)

24,853

177

1,328

10

1,516(234)1,281Intersegment sales
or reclassifications
TotalSegment income

Notes 1:

Adjustments of segment income of ¥(234) 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, 2016

(Millions of yen)

Basic

Functional

Housing

Consolidated

ChemicalChemicalFacilities

ProductsProductsand Others

Total

Adjustments *1

operatingincome *2

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

9,845

8,728

4,112

22,686－

22,68630576

579(579)

－

9,849

8,728

4,688

23,265(579)

22,686

265

1,562

22

1,849(242)

1,606

Adjustments of segment income of ¥(242) 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.

10