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.

November 9, 2023
Company name:Name of representative:

Inquiries:

OSAKA SODA Co., Ltd.
Kenshi Terada, Representative
Director and President and Chief
Executive Officer(Securities code: 4046; Tokyo
Stock Exchange)
Yohji Sekimoto, General Manager,
Corporate Planning Department(Telephone: +81-6-6110-1562)

New Medium-Term Management Plan
(FY2023 to FY2025)
Osaka Soda Group has formulated a three-year medium-term management plan “Shape the Future-2025,” thatstarted in fiscal 2023. An outline of the plan is as follows.
1. Review of the previous medium-term management plan “EMPOWER THE NEXT-22”
The previous medium-term management plan, EMPOWER THE NEXT-22 (FY2021 to FY2022), was basedon the basic policies of “building a resilient business foundation,” “the promotion of market-in-typedevelopment,” “efforts to achieve the SDGs,” and “reforming corporate culture and organizational culture.” It
was a two-year plan to build up strength toward fiscal 2025, positioned as a period of laying the businessfoundations for the future, and focused on business foundations reinforcement, such as production capacity
enhancement of our core products and operational reforms promotion. As a result of the above, we
significantly exceeded our performance targets.
2. Overview of the New Medium-Term Management Plan “Shape the Future-2025”
The new medium-term management plan “Shape the Future-2025” focuses on our ideal image of our group in
2035, the 120th anniversary of our founding. In order to realize our vision for 2025, which is a milestone on
our journey, we will work on the following three basic policies: continuous strengthening of our base inexisting businesses, strengthening of new product creation capabilities, and the promotion of sustainabilitymanagement.
By promoting important measures based on the business foundations strengthened in the previous mediumterm management plan and enhancing our ability to achieve sustainable growth, we are aiming to achieve
record results in the final year.
Our vision for 2025

・ For the Basic chemicals business, strengthen resistance to changes in the business environment andgenerate stable profit by reinforcing existing businesses, creating new businesses, and expanding the scaleof business・ For the Functional chemicals business, maintain and expand the market share of global niche-top products
as Osaka Soda’s growth engine by expanding existing businesses and developing new applications andmaterials
・ For the Healthcare business, expand into growth fields such as biopharmaceuticals in response to changes
in pharmaceutical modalities
・ Establish a development system for the continuous launch of new products

(1)Basic policies

1) Continuous strengthening of our base in existing businesses
We will expand our business base by generating stable cash from existing businesses and actively
investing in growth areas.
For Basic chemicals, we will actively strengthen facility management and invest in maintenance andrenewal. We will also aim to continue production with maximum use of current facilities and maintain andexpand our sales share.
For Functional chemicals, in addition to cultivating the market for global niche-top products anddeveloping new applications, we will work to expand our business scale by expanding sales of Acrylic
Rubber and Non-phthalate Allyl Resin.
For Healthcare, we will steadily capture growing demand, strengthen our profitability, and increase
production capacity to prepare for future demand growth.
2) Strengthening of new product creation capabilities
We will strengthen company-wide efforts to further promote market-in-type development and nurture theproducts that will become the pillars of the next generation. Furthermore, to speed up development, wewill strengthen progress management of development themes, flexible human resource allocation,
development infrastructure, and promote external resources utilization such as alliances and investments.
3) Promotion of sustainability management
The Sustainability Committee, which was established in October 2022, will take the lead in strengthening
sustainability management based on the basic policy of “Aim to combine contributing to the realization asustainable society through our corporate value.” We will further enhance our corporate value throughvarious measures such as reducing greenhouse effect gas emissions, promoting measures to reduce ourenvironmental impact, promoting women’s active engagement, investing in human capital such as throughhuman resource training and education, enhancing the quality and quantity of disclosed information, andenhancing communication with investors.
3. Performance target(Unit: 100 million yen)
FY2025 Target

FY2021 Actual

FY2022 Actual

Net sales

880

1,042

Operating income

124155

180

ROE

11.7％

11.5％

More than 10.0％

FY2021-2022
Cumulative results
81(Unit: 100 million yen)
FY2023-FY2025
Cumulative plan155

⇒

1,230

4. Capital expenditure
Purpose of investment
Strategic investments
Investment for maintenance andproduction efficiency
total⇒

4095

121250・ Promote strategic investments such as capacity building, research and development, and information
infrastructure investment.
・ Plan to invest in maintenance and efficiency by strengthening facility management, including renewal ofaging equipment and investing in preventive maintenance.
・ In addition, 20 billion yen was set as an investment and financing facility for M&A, alliances, etc.

5. Shareholder return policy
Our Group considers the distribution of profits to shareholders to be an important responsibility. Dividends aredetermined by comprehensively taking into account factors such as the results of each fiscal year, thecontinuity of stable dividends, and internal reserves for future business development. In the new medium-term
management plan “Shape the Future-2025,” we aim to achieve a total shareholder return ratio of 40% by
continuing stable dividends and utilizing stock buybacks.