Osaka Soda : CONSOLIDATED FINANCIAL RESULTS For the quarterly period ended June 30, 2021

(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:	Tokyo
Securities code:	4046			URL: http://www.osaka-soda.co.jp
Representative:	Kenshi Terada, Representative Director, President & Chief Executive Officer
For inquiry:	Toru Imamura, General Manager, Administration Division
	(Telephone: [phone])
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 share	Yen		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 for

	three months are not available.
(2)Financial Condition
			June 30, 2021	March 31, 2021
	Total assets	Millions of yen	121,253	119,373
	Net assets	Millions of yen	78,107	77,232
	Equity	Millions of yen	78,099	77,224
	Equity ratio	%	64.4	64.7

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2. Dividends

		Year ending Mar. 31, 2022		Year ending Mar. 31, 2022	Year ended Mar. 31, 2021
			(Forecast)
	End of first quarter								－		－
	End 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		37,000		7.8%		75,500	0.3%
	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%
	Earnings per share		Yen		137.18		-		291.51	-

(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):	None

1. Application of accounting methods used specifically for the preparation of quarterly

consolidated financial statements:

None

1. Changes in accounting policies, accounting estimates and restatements of revisions

1)	Changes in accounting policies due to revisions of accounting standards, etc.:	Yes
2)	Changes in accounting policies other than 1):	None
3)	Changes in accounting estimates:	None
4)	Restatement of revisions:	None

1. 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
2)	Number of treasury shares at the end of period
	As of June 30, 2021:	3,404,932	shares
	As of March 31, 2021:	3,404,604	shares

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3) Average number of shares outstanding in each period
Three months ended June 30, 2021	23,326,851	shares
Three 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 are based 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. This translation is subject to change without notice. Osaka Soda Group shall individually or jointly accept no responsibility or liability for damage or loss caused by any error, inaccuracy, misunderstanding, or changes with regard to this translation.

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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 acceleration of 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 the Next - 22", and implemented concrete measures based on four basic policies, "Building a resilient business foundation", "Promotion of market-in-type development", "Efforts to achieve the SDGs", and "Reforming corporate 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 new grades 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 is that 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 period of fiscal 2020. Net income attributable to owners of parent was ¥2,634 million, an increase of 79.2% compared to 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 pass on 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 the recovery 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 demand in 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 in domestic 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. In addition, Colum for Liquid Chromatography and Analytical Instruments continued to increase favorably in instruments sales to Korea.

In Active Pharmaceutical Ingredients (API) and their Intermediates, net sales increased due to an increase of anti-cancerdrug substance and intermediate, blood flow improver intermediate, and insomnia treatment intermediates increased. Also, the number of contract manufacturing increased in high pharmacologically active drug.

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As a result, Functional Chemical Products reported net sales of ¥11,271 million, up 22.3% compared to the same 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, compared to the same period of fiscal 2020. However, the reality is that Life products continued favorable sales

1. Financial Condition Assets
   Current 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.

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