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

Consolidated Financial Results
for the Six Months Ended September 30, 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:
November 10, 2023
Scheduled date to commence dividend payments:
December 7, 2023
Preparation of supplementary material on quarterly financial results: Yes
Holding of quarterly financial results briefing:
Yes(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the Six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)(1) Consolidated operating results (cumulative)
Net sales
Six 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%

September 30, 2023

46,622(10.2)

4,917(49.4)

6,020(44.5)

4,042(46.1)

September 30, 2022

51,915

23.1

9,722

70.7

10,854

76.3

7,505

69.7

Note: Comprehensive income

For the Six months ended September 30, 2023:
For the Six months ended September 30, 2022:

Basic earnings
per share
Six months ended¥7,516 million¥8,437 million[(10.9)%][111.1 %]Diluted earnings
per share
Yen

Yen

September 30, 2023

158.91－

September 30, 2022

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

Net assets

Equity-to-asset ratio

Millions of yen

Millions of yen

September 30, 2023

146,439

105,928

72.3

March 31, 2023

138,029

99,543

72.1

Reference:

EquityAs of September 30, 2023:
As of March 31, 2023:¥105,916 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 September 30, 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 September 30, 2023

1,289,834 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)
Six months ended September 30, 2023

25,440,958 shares

Six months ended September 30, 2022

23,846,330 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 Six months ended September 30, 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 Six months ended September 30, 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) Consolidated Statements of Cash Flows(4) 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
9
10
10
10
11

1. Qualitative Information Concerning Results for the Six months ended September 30, 2023
(1) Analysis of Operating Results
For the first six months of the consolidated fiscal year, the Japanese economy continued to show signs ofrecovery as social 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 theimpact of factors such as rising raw material and fuel prices, the prolonging of the situation in Ukraine,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, and taking into account the manufacturing equipment problems at theMizushima Plant that occurred in April of this year, our group has decided to act, announcing our new
medium-term management plan, “Shape the Future-2025” (FY2023 to FY2025). This new plan focuses on
our vision of the company in 2035, the 120th anniversary of our founding, and includes measures tostrengthen facility management and proactively invest in renewal and maintenance. In order to realize ourvision for 2025, which is a milestone on our journey, we have established three basic policies: continuous
strengthening of our base in existing businesses, strengthening of new product creation capabilities, and thepromotion of sustainability management, and we have been steadily implementing specific measures in linewith these basic policies.
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, the entire company has been working together to recover from manufacturing equipment problems
to ensure stable supply to customers. 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 newmarkets. 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 asecond phase of expansion in order to meet the growing demand for pharmaceutical purification materials fordiabetes treatments and the rapidly expanding obesity treatments. Investment plans for pharmaceuticalpurification materials are progressing smoothly, with construction at the Matsuyama Plant scheduled to
begin in November of this year and completion scheduled for September 2024, and construction at the
Amagasaki Plant scheduled to begin in January 2024 with completion scheduled for fiscal 2026.
In terms of the “strengthening of new product creation capabilities,” the development of materials for nextgeneration 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 alreadybegun construction of a battery research building as a new research facility, and will steadily develop our
products to become 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 this year, all in an effort to “grow together with our employees as a company” as set forth in our Vision
Statement.
Due in part to the manufacturing equipment problems at the Mizushima Plant (net sales: ¥3,500 million, operating
profit: ¥3,300 million), net sales for the first six months of the consolidated fiscal year were ¥46,622 million, adecrease of 10.2% year on year. In terms of profit, operating profit decreased 49.4% year on year to ¥4,917
million, ordinary profit decreased 44.5% year on year to ¥6,020 million, and profit attributable to owners of parent
decreased 46.1% year on year to ¥4,042 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 volumes of some products due to the manufacturing equipment problems at theMizushima Plant and a decline in demand, net sales of Chlor-Alkali products increased due in part to a rise inproduct 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 13.0% year on year to ¥18,266
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, particularly to customers in Asia, as it was adopted for new
applications in Japan and overseas.
Net sales of DAP resin for China remained strong, but decreased in Japan, Europe, and the Americas due tosluggish demand.
Sales of Allyl Ethers decreased due to a decline in demand for Silane coupling agents mainly for paintapplications in Europe, the Americas, and China, as well as softening market conditions.
As a result of the above, net sales in the Functional chemicals business decreased 11.3% year on year to ¥13,477
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
1.9% year on year to ¥5,372 million.
<Trading and Others>
While net sales for consumer products increased thanks to strong sales, net sales decreased due to sluggish salesof electronic materials and automotive products, mainly glass fiber.
As a result of the above, net sales in the Trading and others business decreased 9.1% year on year to ¥9,507
million.
(2) Analysis of Financial Position(Assets)
Current assets were ¥93,059 million, an increase of 3.8% compared to the end of the previous fiscal year. This was
mainly due to an increase of ¥6,607 million in cash and deposits.
Noncurrent assets were ¥53,379 million, an increase of 10.3% compared to the end of the previous fiscal year.
This was mainly due to an increase of ¥4,312 million in investment securities. As a result, total assets at the end of
the first six months of the consolidated accounting period were ¥146,439 million, an increase of 6.1% comparedto the end of the previous fiscal year.
(Liabilities)
Current liabilities were ¥33,144 million, an increase of 2.6% compared to the end of the previous fiscal year. Thiswas mainly due to an increase of ¥1,147 million in notes and accounts payable.
Noncurrent liabilities were ¥7,366 million, an increase of 19.3% compared to the end of the previous fiscal year.
This was mainly due to an increase of ¥1,300 million in deferred tax liabilities.
As a result, liabilities at the end of the first six months of the consolidated accounting period were ¥40,510
million, an increase of 5.3% compared to the end of the previous fiscal year.

-3-

(Net assets)
Total assets at the end of the first six months of the consolidated accounting period were ¥105,928 million, an
increase of 6.4% compared to the end of the previous fiscal year. This was mainly due to increases of ¥2,898
million in retained earnings and ¥2,977 million in unrealized gains on other securities.

(Cash flows)
Cash and cash equivalents at the end of the first six months of the consolidated accounting period increasedby ¥3,607 million compared to the end of the previous fiscal year to ¥40,450 million. Cash flows for the firstsix months of the consolidated fiscal year and their factors are as follows.
①Cash flow from operating activities was ¥5,149 million (compared to ¥5,922 million in the same period of
the previous fiscal year). This was mainly due to a profit before income taxes of ¥5,925 million anddepreciation expenses of ¥1,863 million as increasing factors, and an increase in inventories of ¥1,701
million and income taxes paid of ¥3,337 million as decreasing factors.
②Cash flow from investment activities was ¥815 million (compared to ¥3,005 million in the same period of
the previous fiscal year). This was mainly due to the purchase of property, plant and equipment of ¥1,131
million.
③Cash flow from financing activities was ¥1,167 million (compared to ¥1,339 million in the same period of
the previous fiscal year). This was mainly due to the payment of ¥1,143 million yen in dividends.
(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 September 30, 2023

12,844

19,45129,29029,220

3,826

4,640

23,998
9,516
2,602
3,965
3,599
(3)
89,64020,998
9,757
2,470
5,619
903
(2)
93,0596,721
11,239
2,304
644
3,730
462
25,103

7,285
12,484
2,305
653
2,484
445
25,658

217
102
320
639

189
109
622
920

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

25,615
482
13
712
(22)
26,80053,379146,439

(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 September 30, 2023

14,397
7,172
3,585
928
58
6,168
32,31015,544
7,172
2,033
923
65
7,405
33,144

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

436
847
3,009
2,743
150
179
7,366
40,51015,871
17,00962,741(3,811)
91,812

15,871
17,01465,639(3,806)
94,7197,339

10,317

(101)
676
(190)

159
894
(174)

7,723

11,197

8
99,543138,029

12
105,928
146,439

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)Six months ended
September 30, 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 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-

Six months ended
September 30, 2023

51,91535,13916,775
7,053
9,722

46,622
34,466
12,156
7,238
4,917

6
332

10
372

7

3

802
5
－
111
1,265

474
－
253
76
1,191

47
70

39
－

－

26

17
134
10,854

23
89
6,020

123
123
10,730
3,178
46
3,225
7,504
(0)
7,505

94
94
5,925
1,833
52
1,886
4,039
(3)
4,042

Consolidated statements of Comprehensive Income(Millions of yen)Six months ended
September 30, 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-8-

Six months ended
September 30, 2023

7,504

4,039

(30)

2,977

270
652

261
213

16

15

23

8

932
8,437

3,476
7,516

8,433

7,516

4

(0)

(3) Consolidated Statements of Cash Flows(Millions of yen)Six months ended
September 30, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit
liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss on retirement of non-current assets
Loss on tax purpose reduction entry of noncurrent assets
Share of loss (profit) of entities accounted forusing equity method
Insurance claim income
Subsidy income
Decrease (increase) in notes and accounts
receivable - trade and contract assets
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption
taxes
Other, net
Subtotal
Subsidies received
Interest and dividends received
Interest paid
Proceeds from insurance income
Income taxes paid
Net cash provided by (used in) operating
activities-9-

Six months ended
September 30, 2023

10,730
1,840
69

5,925
1,863
28

19

16

(54)

(5)

(67)

(82)

(338)
47
(249)
123

(383)
39
(236)
94

－

26

(7)

(3)

(5)
－

－
(253)

(3,467)(607)(2,176)
1,581(1,701)
980

142

(167)

107
8,294
－
344
(47)
5
(2,674)

2,554
8,087
48
390
(39)
－
(3,337)

5,922

5,149

(Millions of yen)Six months ended
September 30, 2022
Cash flows from investing activities
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of shares of subsidiaries andassociates
Subsidies received
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Proceeds from redemption of bonds with
subscription rights to shares-FinCF
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid
Other, net
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period(4) Notes to Quarterly Consolidated Financial Statements(Notes on Premise of Going Concern)
Not applicable(Notes on Major Changes in Shareholders’ Equity)
Not applicable- 10 -

Six months ended
September 30, 2023

(2,103)(85)(707)(1,131)
(337)
(10)

－

588

－
(109)

205
(128)

(3,005)

(815)

(41)

－

－
(235)
(1,049)
(13)

(34)
(1)
(1,143)11(1,339)(1,167)

693

440

2,271

3,607

37,01639,28836,84340,450(Segment Information and Other Items)

The Six months ended September 30, 2022 (from April 1, 2022 to September 30, 2022)(Millions of yen)Basicchemicals

Functional
chemicals

Healthcare

Trading
and Others

Total

Adjustments*1

Consolidated*2

Net salesJapan
17,047
4,014
2,309
8,221
31,593
－
China
7
4,305
674
1,291
6,278
Asia
2,660
3,121
868
881
7,532
－
Europe
311
2,479
898
35
3,724
－
Others
958
1,281
521
24
2,787
－
Revenue fromContracts with
20,986
15,201
5,273
10,45451,915－
Customers
Other Revenue
－
－
－
－
－
－
External sales
20,986
15,201
5,273
10,45451,915－Intersegment
sales or
0
680
－
2,169
2,850
(2,850)reclassifications
Total
20,987
15,881
5,273
12,62454,766(2,850)
Segment income
3,730
3,951
2,307
381
10,371(648)
Notes:(1) Adjustments of segment income of ¥ (648) 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.

- 11 -

31,593
6,278
7,532
3,724
2,787
51,915－51,915－51,915
9,722

The Six months ended September 30, 2023 (from April 1, 2023 to September 30, 2023)(Millions of yen)Basicchemicals

Functional
chemicals

Healthcare

Trading
and Others

Total

Adjustments*1

Consolidated*2

Net salesJapan
17,604
3,787
2,327
8,361
32,08032,080
－
China
3,942
543
821
5,307
5,307
－
－
Asia
396
2,960
759
313
4,431
4,431
－
Europe
143
1,585
1,306
3
3,037
3,037
－
Others
122
1,201
435
6
1,765
1,765
－
Revenue fromContracts
18,266
13,477
5,372
9,507
46,622－
46,622withCustomers
Other Revenue
－
－
－
－
－
－
－
External sales
18,266
13,477
5,372
9,507
46,622
46,622－
Intersegment
sales or
0
551
－
1,376
1,928
(1,928)－
reclassifications
Total
18,266
14,028
5,372
10,88348,551(1,928)46,622
Segment income
59
2,107
2,661
698
5,527
(609)
4,917
Notes:(1)
Adjustments of segment income of ¥ (609) 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 Six months of the pervious consolidated fiscal year is disclosed basedon the post-change classification of the reportable segments.

- 12 -