May 14, 2021
To whom it may concern,
Company name: OSAKA SODA Co., LTD.
Securities Code: 4046, First Section, Tokyo Stock Exchange
Representative: Kenshi Terada
Representative Director, Chief Operating Officer
For inquiry:

Yoji Sekimoto
General Manager,
Corporate Planning Department
Tel: +81-(0)6-6110-1560

New Mid-term Management Plan (FY2021-2022)
OSAKA SODA GROUP has formulated a new medium-term management plan, EMPOWER
THE NEXT 22, for the period from fiscal 2021 to fiscal 2022.
1. Review of the previous medium-term management plan
Under the previous medium-term management plan, BRIGHT 2020 (fiscal 2020), we
focused on “creating new growth engines”, “establishing a profitable global business”, and“completing business structural reforms”. We are aiming to further shift our focus toprofit-oriented management and are working to raise our corporate value
In “creating new growth engines”, we launched and expanded sales of acrylic rubber andnon-phthalate allyl resins. In “establishing a profitable global business”, we invested in a U.S.
fund and aggressively expanded our specialty chemicals business in North America. In“completing business structural reform”, an agreement was reached to integrate theelectrolysis equipment of the Fukuoka Plant of Mitsubishi Chemical Corporation with that of
our Ogura Plant, and to further expand the scale of business in the Kyushu region andstrengthen cost competitiveness by streamlining production.
However, in fiscal 2020, while the pharmaceutical-related business performed strongly,
performance targets were not achieved due to continued sluggish performance in Basic
Chemicals and Functional Chemicals, which is mainly in automobile-related products,
because the economic activities were restricted by the spread of COVID-19 infection.

2. Establishment of a new mission statement and vision statement
Osaka Soda Group has reformed our mission statement and vision statement in order topromote company-wide business reforms and to realize our vision for fiscal 2035, whichmarks the 120th anniversary of our founding.
We will promote management focusing on the three areas, “Achieving a sustainablesociety”, “Pursuit of global competitiveness”, “Growing together with our employees as acompany”, to further enhance our corporate value and competitiveness.
Mission Statement
To contribute to the realization of a safe and affluent society through our creativetechnologies and innovative products
Vision Statement
Be a corporate group that provides new value to society through chemistry(1) Contribute to the realization of a sustainable society through environmentally andsafety-conscious manufacturing(2) Meet the needs of our customers with globally competitive technologies andquality(3) Respect the values of each and every one of our employees and aim to be acompany that grows together
3. Concept of the New Medium-Term Management Plan that considers the impact ofCOVID-19
We have backcasted from the ideal image of fiscal 2035 to drawn up “what we should do”
in fiscal 2025 and our performance targets.
However, the world economy is expected to recover from the downturn caused by
COVID-19 infection due to expectations for vaccination effects and economic measurestaken by each country, but full-fledged economic recovery is unlikely to continue.
For this reason, we have established a two-year plan starting in fiscal 2021 and have set
the period for implementing measures aimed at achieving growth during the period offull-fledged recovery.
4. Basic policy of “EMPOWER THE NEXT - 22”(1) Building a resilient business foundation
Chemicals business, Functional Materials business, and Healthcare business will bepositioned as core businesses and resilient strategy will be pursued.
1) Chemicals business (Basic Chemicals segment)We will build a structure that generates stable earnings with strong resilience to changes
in the business environment as the earnings base that supports the growth strategies ofthe functional products business and the health care business.
(2) Functional Materials business (Functional Chemicals segment)
As a growth engine, we will work to deepen the market for global niche-top products,develop new applications, and launch new products.
(3) Health Care business (Functional Chemicals segment)
To respond to changes in pharmaceutical modalities, expand existing businesses in APIs,intermediates, and refining materials, and enhance technology and product lineups toacquire new projects.
(2) Promotion of market-in-type development
We aim for early market launch by accurately grasping customer needs under theleadership of the business division, planning new products together with the R&D division,and quickly developing them. Especially we will promote development themes that make fulluse of originality in the fields of mobility, information and communication, environment andenergy, and health and healthcare.
1) Mobility
Functional materials that support the electrification of mobility provided by CASE, MaaS,and Society 5.0
2) Information and Communication
Products required for advanced telecommunications networks that form the foundation ofa smart society3) Environment and Energy
Materials that contribute to the environment and energy, such as improved energy
efficiency, longer product life, and solvent-free products4) Health and Healthcare
New pharmaceutical refining materials and technologies, anti-aging materials(3) Efforts to achieve the SDGs
We contribute to the realization of a sustainable global environment through all corporateactivities. In addition, we aim to become a corporate group capable of sustainable growth bystrengthening existing businesses and establishing a competitive advantage through thedevelopment of new products.
1) In addition to contributing to existing products and businesses, SDGs are also reflected indevelopment policies for new products and new businesses.

2) Strengthening efforts to achieve non-financial targets, such as greenhouse gas emission
reduction targets(4) Reforming corporate culture and organizational culture
Under the new management philosophy system, we will reform our business system andpersonnel system, and raise the level of our organizational capabilities and humanresources capabilities through business reform activities at all levels.
1) To put “Mission Statement” and “Vision Statement” into practice and firmly establish
Redefining and disseminating the ideal image of our employees under the new “MissionStatement” and “Vision Statement”
2) Increasing operational efficiency through use of systems
Introduction and utilization of a system to improve the efficiency of work flow3) Renovation of personnel system
Permeation of organizational management and development of self-directed humanresources
5. Performance targets
FY2019FY2020

FY2021

FY2022

FY2025

ActualActualForecast

Plan

TargetNet of sales *818

753

755

800

1,000

Operating income

9783

90

100

125

ROE

9.7%

8.3%

8.6%

8.5% or higher

8.5% or hirer* "Accounting Standard for Revenue Recognition” (ASBJ Statement of No.29) are applied to thefigures for fiscal 2019 and 2020.

6. Capital expenditure (2 years)
Purpose of investment

Amount(billion yen)

Strategic investment

9

Investment to maintain and improve efficiency

6Total15

Strategic investment will be promoted, including capacity enhancement, large-scale renewal
investment, R&D investment, and strengthening of information infrastructure in order to make aleap forward from the fiscal year onward,
The maximum amount of 10 billion yen in investment and loan is set for M&A and alliance etc.