(Reference Translation)
Aug 6, 2021

OSAKA SODA CO., LTD.
CONSOLIDATED FINANCIAL RESULTS
For the quarterly period ended June 30, 2021
(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:

Kenshi Terada, Representative Director, President & Chief Executive Officer

For inquiry:

Toru Imamura, General Manager, Administration Division(Telephone: +81-6-6110-1560)

Scheduled date of filing of quarterly securities report:

Aug 10, 2021

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, 2021

June 30, 2020

Change *Change *Net sales

Millions of yen

21,435-%23,257(13.0)%

Operating income

Millions of yen

3,057

57.0%

1,947(26.5)%

Ordinary income

Millions of yen

3,465

60.0%

2,165(23.3)%

Net income

Millions of yen

2,634

79.2%

1,470(13.2)%

Comprehensive income

Millions of yen

1,633(36.9)%

2,577

82.0%

Net income per share

Yen

112.93-61.96

Diluted net income per shareYen

101.49-55.05-(Note)Osaka Soda Group has adopted “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29,
March 31, 2020) from the beginning of quarterly period ended June 30, 2021. The figures for the quarterly
period ended June 30, 2021 reflect this change of accounting standard and year-on-year percent changes forthree months are not available.

(2)Financial Condition
June 30, 2021

March 31, 2021

Total assets

Millions of yen

121,253119,373

Net assets

Millions of yen

78,107

77,232EquityMillions of yen

78,09977,224

%

64.4

64.7

Equity ratio

12. Dividends
Year ending Mar. 31, 2022

(Forecast)Year ending Mar. 31, 2022

Year ended Mar. 31, 2021－－

End of first quarterEnd of second quarter

32.50

32.50

End of third quarter－－End of fourth quarter

32.50

32.50

Full year

65.00

65.00

(Note) Change in dividends forecast from the most recent announcement: None

3. Earnings Forecast for the fiscal year ending March 31, 2022
First half

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(Note1)

Change in dividends forecast from the most recent announcement: None

(Note2)In order to adopt “Accounting Standard for Revenue Recognition” (ASBJ Statement No.29, March 31, 2020)
from the beginning of year ended March 31, 2022, the above earnings forecast reflect this accounting
standard and year-on-year percent changes are computed on the assumption that this standard is adopted
for the year ended March 31, 2021.

* Notes(1)

Changes in significant subsidiaries during the current quarterly period(Changes in specified subsidiaries resulting in the change in scope of consolidation):(2)

Application of accounting methods used specifically for the preparation of quarterly
consolidated financial statements:

(3)

(4)

None

None

Changes in accounting policies, accounting estimates and restatements of revisions
1) Changes in accounting policies due to revisions of accounting standards, etc.:

Yes2) 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, 2021:

26,731,714

shares

As of March 31, 2001:

26,731,415

shares

As of June 30, 2021:

3,404,932

shares

As of March 31, 2021:

3,404,604

shares2) Number of treasury shares at the end of period23) Average number of shares outstanding in each period
Three months ended June 30, 2021

23,326,851

sharesThree months ended June 30, 2020

23,728,689

shares*Disclosure regarding the execution of the quarterly review process:This quarterly financial results are outside the scope of the quarterly review by certified public accountants
or an audit firm.

*Appropriate use of financial forecasts, other special 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 arebased 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 noresponsibility or liability for damage or loss caused by any error, inaccuracy, misunderstanding, or changes
with regard to this translation.

34. Qualitative Information(1)Results of Operations
During the three months ended June 30, 2021, Japan’s economy has picked up as a trend in a severe situation
due to the novel coronavirus infections. The economy is expected to pick up, supported by the accelerationof vaccinations, the effects of the policies, and improvement in overseas economies. However, the outlook
remains uncertain due to the declaration of emergency measures in some prefectures.
Under the circumstances, Osaka Soda Group launched the Medium-Term Management Plan “Empower theNext - 22”, and implemented concrete measures based on four basic policies, “Building a resilient businessfoundation”, “Promotion of market-in-type development”, “Efforts to achieve the SDGs”, and “Reformingcorporate culture and organizational culture”.
Regarding to ”Building a resilient business foundation”, Chemicals business , Functional Materials business ,and Healthcare business will be positioned as core businesses and resilient strategy is pursued.
Health Care business continued to grow at a strong pace due to an increase of customer acceptance for newgrades in Chromatography and to increase of new orders for Pharmaceutical API and Intermediates.
Pursuing cost reduction at a production site is connected to constantly meet our targets.
As a result, net sales were ¥21,435 million, a decrease of 7.8% compared to the same period of fiscal 2020.
Net sales declined 6,827 million yen caused by the adoption of revenue recognition standard, but the reality isthat net sales increased. Operating income was ¥3,057 million, an increase of 57.0% compared to the same
period of fiscal 2020. Ordinary income was ¥3,465 million, an increase of 60.0% compared to the same periodof fiscal 2020. Net income attributable to owners of parent was ¥2,634 million, an increase of 79.2% comparedto the same period of fiscal 2020. All incomes for the first quarter reached record highs.
The following is a summary of reporting segments.
Basic Chemical Products
In Chlor-Alkali, net sales increased due to the demand recovery from COVID-19.
In Epichlorohydrin, net sales increased due to the demand recovery mainly in electrical materials and passon raw material price increase into production cost.
As a result, Basic Chemical Products reported net sales of ¥8,356 million, down 17.6% compared to the same
period of fiscal 2020, due to the adoption of Accounting Standard for Revenue Recognition.
Functional Chemical Products
In Synthetic Rubber and related businesses, Epichlorohydrin Rubber, net sales increased due to therecovery of the decline in the number of global automobiles production. Acrylic Rubber, net sales increased
due to an expansion of customer acceptance in domestic and overseas.
In Diallyl Phthalate Resin, net sales increased due to a growth of electric materials caused by nesting demandin domestic and the constant growth of exported sales to China in overseas sales.
In Allyl Ethers, net sales increased due to volume growth in silane coupling agents for semiconductor indomestic and China.
In Separation Media in Pharmaceutical Industry (Silica Gel for Liquid Chromatography), net sales increased
due to the expansion of demand for diabetes drug use to Europe & the United States and Asian countries. Inaddition, Colum for Liquid Chromatography and Analytical Instruments continued to increase favorably ininstruments sales to Korea.
In Active Pharmaceutical Ingredients (API) and their Intermediates, net sales increased due to an increaseof anti-cancer drug substance and intermediate, blood flow improver intermediate, and insomnia treatment
intermediates increased. Also, the number of contract manufacturing increased in high pharmacologicallyactive drug.

4

As a result, Functional Chemical Products reported net sales of ¥11,271 million, up 22.3% compared to thesame period of fiscal 2020.
Housing Facilities and Others
Net sales were ¥1,806 million, down 53.7% due to the adoption of revenue recognition standards, comparedto the same period of fiscal 2020. However, the reality is that Life products continued favorable sales(2) Financial Condition
AssetsCurrent assets were ¥76,978 million, an increase of 4.2% since March 31, 2021. The increase was due
primarily to a decrease of ¥2,164 million in notes and accounts receivable-trade, an increase of ¥1,423 million
in electronically recorded monetary claims respectively, and a decrease of ¥1,072 million in cash and deposits.
Noncurrent assets were ¥44,274 million, a decrease of 2.7% since March 31, 2021. The decrease was due
primarily to a decrease of ¥1,169 million in investment securities.
As a result, Total assets were ¥121,253 million, an increase of 1.6% since March 31, 2021.
Liabilities
Current liabilities were ¥28,228 million, an increase of 5.3% since March 31, 2021. The increase was due
primarily to an increase of ¥ 1,436 million in notes and accounts payable- trade.
Noncurrent liabilities were ¥14,917 million, a decrease of 2.6% since March 31, 2021. The increase was due
primarily to a decrease of ¥360 million in deferred tax liabilities.
As a result, Total liabilities were ¥43,145 million, an increase of 2.4% since March 31, 2021.
Net assets
Net assets were ¥78,107 million, an increase of 1.1% since March 31, 2021.
(3) Earnings Forecasts
There are no revisions to the earnings forecast from the previous forecast announced in the “Consolidated
financial results both for the quarterly period ending September 30, 2021 and for the year ending March 31,2022” dated on May 14, 2021.

55. Consolidated Financial Statements

CONSOLIDATED 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
Property, plant, and equipment
Property, plant, and equipment - Net
Other - Net
Total property, plant and equipment
Intangible assets
Goodwill
OtherTotal intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other, net
Less: Allowance for doubtful accounts
Total investment and other assets
Total noncurrent assets
Total assets

6

March 31, 2021

June 30, 2021

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

16,36328,8194,879
14,499
7,090
1,669
2,548
1,178
(71)
76,978

8,920
11,616
20,536

8,935
11,68020,615

498
283
782

452
269
722

22,965325893(6)24,17845,496
119,373

21,796283864(6)22,93744,274
121,253

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
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

7

March 31, 2021

June 30, 2021

13,046
7,172
1,492
884
4,223
26,81814,483
7,172
993
452
5,126
28,228

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

8,736
2,103
2,683
1,393
14,917
43,145

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

15,871
14,38948,263(7,670)70,854

8,292
48(13)(80)
8,247
777,232
119,3737,2041499(73)
7,245
8
78,107
121,253

CONSOLIDATED STATEMENTS OF INCOME(Millions of yen)Three Months Ended
June 30, 2020
June 30, 2021
23,257
21,435
18,314
15,1684,942
6,266

Net sales
Cost of sales
Gross profit
Selling, general, and administrative expenses
Operating income

2,994
1,947

3,208
3,057

4
256-

2251
18

21
282

14
154
441

22
1022-

24
664
2,165

1133
3,465-

304-

304

Extraordinary loss
Loss on sale of intangible assets
Total extraordinary loss
Income before income taxes

42422,12323233,746

Income taxes - current
Income taxes - deferred
Total income taxes
Net income

371282
653
1,470

938
173
1,111
2,634

Net income attributable to non-controlling interests
Net income attributable to owners of parent(0)1,470(0)2,634Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodForeign exchange gainOthers
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange loss
OtherTotal non-operating expenses
Ordinary income
Extraordinary gain
Gain on sale of investment securities
Total extraordinary gain

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
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive incomeComprehensive income
Comprehensive income attributable to:
Owners of parent
Non-controlling interests

9Three Months Ended
June 30, 2020
June 30, 2021
1,470
2,634
1,128(2)(26)
9(2)(1,087)
(34)
105
88

1,107
2,577

(1,001)
1,633

2,577
(0)

1,632
0

6. Notes to the Consolidated Financial Statements(1) Notes regarding the going concern assumption:

None

(2)

Notes on significant changes in shareholders’ equity:

None

(3)

Changes in Accounting Policies(Adoption of the Accounting Standard for Revenue Recognition)
Osaka Soda Group has adopted “Accounting Standard for Revenue Recognition” (ASBJStatement No.29, March 31, 2020) and related implementation guidance from the beginning of
the fiscal year ending March 31, 2022, and recognize revenue at the amount expected to bereceived in exchange for its goods or services when the dominance of the promised goods orservices is transferred to customers.
As a result of its change, rebate which was conventionally recorded as selling, general andadministrative expenses and sales discounts which was conventionally recorded as nonoperating expenses, has been deducted from Net sales. And if a contract includes a variable
amount, Osaka Soda Group includes it in the transaction price only when a significant reversal
in the amount of cumulative revenue recognized will not occur once the uncertainty related to
the variable consideration is subsequently resolved.
Regarding to the adoption of the revenue recognition standards, in accordance with thetransitional treatment stipulated in the provision to paragraph 84 of the Accounting Standard for
Revenue Recognition, the cumulative effect of retroactively adopting the new accounting policy
prior to the beginning of the fiscal year ending March 31, 2022, has been added to or deductedfrom retained earnings at the beginning of the fiscal year ending March 31, 2022 and the new
accounting policy has been adopted from the beginning balance of the fiscal year ending
March 31, 2022.
As a result, net sales and cost of sales decreased 6,827 million yen respectively for thequarterly period ended June 30, 2021. Nothing has changed in operating income, ordinary
income, net income before income taxes. Leave the prior year classifications unchanged
following new presentation requirements in accordance with the transitional treatment stipulatedin the provision to paragraph 89-2 of the Accounting Standard for Revenue Recognition.
(Adoption of the Accounting Standard for Fair Value Measurement)
Osaka Soda Group has adopted “Accounting Standard for Fair Value Measurement” (ASBJ
Statement No.30, July 4, 2019) and related implementation guidance from the beginning of thequarterly period ended June 30, 2021. Based on the transitional treatment prescribed inParagraph 19 of the Accounting Standard for Fair Value Measurement and Paragraph 44-2 ofthe “Accounting Standard for Financial Instruments” (ASBJ Statement No.10, July 4, 2019), we
have decided to apply the new accounting policies set forth by the Accounting Standard for Fair
Value Measurement into the future. These changes had no impact on the quarterly consolidated
financial statements.

10(4) Segment information
Three months ended June 30, 2020

(Millions of yen)

Basic

Functional

Housing

Consolidated

ChemicalChemicalFacilities

Products

Productsand Others

Total

Adjustments*1

operatingincome *2

Net sales
External sales

10,138

9,220

3,898

23,257－

23,257

8

53

133

194

(194)

－

10,147

9,273

4,031

23,452(194)

23,257

1,089

1,075

66

2,231(283)

1,947Intersegment sales
or reclassifications
Total
Segment income

Note 1

Adjustments of segment income of ¥(283) million are corporate expenses not allocated to reportablesegments. Corporate expenses are mainly expenses not attributable to a reporting segment andrelated to fundamental research and development as well as administrative departments.

Note 2

Segment income has been adjusted for the operating income appearing in the quarterly
consolidated statements of income.

Three months ended June 30, 2021

(Millions of yen)

Basic

Functional

Housing

ChemicalChemicalFacilities

ConsolidatedProducts

Productsand Others

TotalAdjustments *1

operatingincome *2

Net sales
External sales
Intersegment sales
or reclassifications
TotalSegment income

Note 1

8,356

11,271

1,806

21,435－21,4352105756864(864)－

8,359

11,376

2,563

22,299(864)21,435

911

2,278

150

3,341(283)3,057

Adjustments of segment income of ¥(283) million are corporate expenses not allocated to reportablesegments. Corporate expenses are mainly expenses not attributable to a reporting segment andrelated to fundamental research and development as well as administrative departments.

Note 2Segment income has been adjusted for the operating income appearing in the quarterly
consolidated statements of income.

11