Osaka Soda : FY2022 Presentation Material - Results for FY2022 & Forecast for FY2023

FY2022 Presentation Material

- Results for FY2022 & Forecast for FY2023 -

June 2, 2023

Recovery Status: Main Equipment Malfunctions in AC Production Facility

Situation to Date

On April 4, 2023, the main equipment of the Allyl Chloride (AC) production facility at the Mizushima Plant was suspended due to malfunctions. The facility had been out of service since early March for regular maintenance. After conducting equipment checks and inspections, full-scale operation resumed in late March after test runs were held to confirm that there weren't any issues. Currently, the recovery plan announced on May 11 is proceeding on schedule.

Recovery Plan (as of May 11, 2023)

May 8, 2023	Mid-June 2023	March 2024
Resume production of	Partial repairs to improve	Full-recovery
some products	manufacturing capacity to	during regular maintenance
	approx. 70%

Impact on Performance

We have calculated the forecast for FY2023 based on the above recovery plan.

We apologize for any inconvenience and concern this may cause, and will continue to work

toward a full recovery as soon as possible.

1

Results for FY2022

Earnings Trends (FY2018 to FY2022)

◼ Net Sales increased significantly from the previous fiscal year when the Accounting Standard for Revenue Recognition was applied

◼ Set new record highs for each stage of profit by a significant margin for the

second period in a row

New record high

		Net income (right scale)
(Millions of yen)		Operating income (right scale)

Ordinary income (right scale)
Net sales (left scale)	(Millions of yen)

120,000	107,874							21,000
		105,477			104,208
				97,266
					88,084	15,557	17,164	18,000
90,000
					13,435			15,000
					12,401
60,000	10,053		10,321				10,570	12,000
9,488		9,698	8,341 8,838	9,442
							9,000
		6,793
		6,506	6,050
							6,000
30,000
								3,000
0								0
	FY2018		FY2019	FY2020	FY2021		FY2022

* The "Accounting Standard for Revenue Recognition" has been adopted since FY2021

3

Overview of Consolidated Financial Results

• Landing on the planned line, which was revised upward on August 5, 2022
• Net income target was not achieved due to the recording of impairment losses caused by deterioration in the performance of rubber compounds company that was newly consolidated at the end of FY2022

				FY2021		FY2022	%Change	Change	Revised	Achievement	Change
					target *
(Millions of yen)						(A)			(YoY)	(YoY)	rate	(A)-(B)
			To sales		To sales	(B)
Net sales			88,084	-		104,208	-	18.3％	16,124	98,000	106.3％	6,208
Operating income		12,401	14.1％		15,557	14.9	25.4％	3,156	15,700	99.1％	(143)
Ordinary income		13,435	15.3％		17,164	16.5	27.8％	3,729	16,900	101.6％	264
Net income			9,442	10.7％		10,570	10.1	12.0％	1,128	11,700	90.3％	(1,130)
Earnings per			404.73	-		428.43	-	-	-	501.97	-	-
share (yen)
Overseas sales			31,807	36.1％		39,675	38.1	24.7％	7,868	-	-	-
													*Announced on 5 August, 2023
						FY2021	FY2022
Average		Yen / USD			112 yen	134 yen
exchange rate		Yen / Euro			131 yen	140 yen
Naphtha price (Yen / KL)			55,500 yen	75,500 yen

4