Slides
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1H FY2025 Presentation Material- Results for 1H FY2025 & Full-Year Forecast - December 3, 2025
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Results for 1H FY2025
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2 Net sales decreased but income increased YoY for the 1H FY2026Profit at each stage reached a second highest level following 1H FY2022Net income for 1H 2025 includes an extraordinary gain from investment securities saleEarnings Trends 3,497 5,694 9,722 4,917 6,967 8,111 3,698 6,158 10,854 6,020 7,185 8,910 2,474 4,421 7,505 4,042 4,866 6,755 45,17842,15751,91546,62250,16748,832 02,0004,0006,0008,00010,00012,00014,000 010,00020,00030,00040,00050,00060,000 1H FY2020 1H FY2021 1H FY2022 1H FY2023 1H FY2024 1H FY2025 Operating income （right scale）Ordinary income （right scale）Net income （right scale） Net sales （left scale）(Millions of yen) (Millions of yen)
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3 Net sales declined due to factors including softening market conditions for one product in the functional chemicals businessOperating income exceeded YoY and initial forecasts due to the resolution of production problems in basic chemicals, cost reduction initiatives, and improved market conditionsOverview of Consolidated Financial Results 1H FY20251H FY2024Assumptions147 Yen154 YenYen / USDYen / EuroAverage exchange rate167 Yen167 Yen64,500 Yen79,000 YenYen / KLNaphtha price Change(A)-(B)Achievement rateInitial forecast(B)Change(YoY)Change(YoY)1H FY20251H FY2024to sales(A)to sales(Million of yen)(1,368)97.3%50,200(2.7)%(1,335)ー48,832ー50,167Net sales111101.4%8,00016.4%1,14416.6%8,11113.9%6,967Operating income410104.8%8,50024.0%1,72518.2%8,91014.3%7,185Ordinary income1,055118.5%5,70038.8%1,88913.8%6,7559.7%4,866Net incomeーーーーーー￥53.74ー￥38.36Earning per shareーーー(3.5)%(679)38.6%18,83338.9%19,512Overseas sales
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4 18,403 20,302 1,047 2,946 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 0 5,000 10,000 15,000 20,000 25,000 30,000 1H FY2024 1H FY2025Net salesOperating incomeBasic chemicals : Cost reduction initiatives made a significant contributionChlor-Alkali : Resolved production problems contributed to improved unit costs and increased production volume Epichlorohydrin : Improved market conditions and higher sales volume contributed Net sales (up ¥1.9 billion YoY)+0.1Chlor-Alkali+1.8Epichlorohydrin1.02.9Salesunitprice+0.1FeedstockCosts+1.2Productionand salesvolume+0.9Fixed costs(0.3)1HFY20241HFY2025 Segment (Basic Chemicals)(Millions of yen)Variance (Operating income, YoY) (Billions of yen)
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5 15,963 13,596 2,560 1,926 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 0 5,000 10,000 15,000 20,000 25,000 1H FY2024 1H FY2025Net salesOperating income Net sales (down ¥2.3 billion YoY)(0.2)Synthetic rubber / Synthetic resin(1.0)Allyl ethers(1.1)etc.2.5Salesunitprice(1.1)FeedstockCosts+0.6Productionand salesvolume(0.1)Fixed costs±0.01.91HFY20241HFY2025 Segment (Functional Chemicals)(Millions of yen)Variance (Operating income, YoY) (Billions of yen)Synthetic rubber : Acrylic rubber sales remain steady, mainly for China and Asia, while epichlorohydrin rubber sales for automotive applications in Europe are sluggishSynthetic resin：DAP monomer for building materials increased demand for replacement from competing products and Non-phthalate allyl resin increased new applications for UV inksAllyl ethers : Strong decline in Chinese market conditions, and decline in European demand for Silane coupling agents
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6 6,172 6,709 3,424 3,447 (1,000) 1,000 3,000 5,000 7,000 9,000 11,000 13,000 15,000 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 1H FY2024 1H FY2025Net salesOperating income Net sales (up ¥0.5 billion YoY)+0.8Chromatography*(0.3)APIs and their Intermediates3.43.4Salesunitprice±0.0FeedstockCosts±0.0Productionand salesvolume+0.4Fixed costs(0.4)1HFY20241HFY2025 Segment (Healthcare)(Millions of yen) * Pharmaceutical purification materials(Silica gel), analytical equipment, packed columns Variance (Operating income, YoY) (Billions of yen)Chromatography : Silica gel business grew on strong demand for diabetes and obesity medications, offsetting higher depreciation at Matsuyama through increased volumeAPIs and their intermediates : Affected by the decreased sales of intermediates for diabetes medication and othersAmagasaki 2nd Phase Expansion for silica gel was completed in September 2025, 1 year ahead of initial schedule
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7 Consumer products : Sales remained steadySpecialty Polymer Materials : Sales of printing-related products remained sluggishOthers : Sales of inorganic chemicals declined9,627 8,223 570 462 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 20,000 1H FY2024 1H FY2025Net salesOperating income0.5Sales volume, etc.(0.1)0.41HFY20241HFY2025 Net sales (down ¥1.4 billion YoY)+0.4Consumer products(0.3)Specialty Polymer Materials(0.1)Building Materials(1.4)Basic chemicals products, etc. Segment (Trading and Others)(Millions of yen)Variance (Operating income, YoY) (Billions of yen)
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8Change from 1H FY20241H FY2025FY20241H FY2024(Million of yen)(2,129)7,98817,04910,117Cash flows from operating activities1,750(2,733)(8,135)(4,483)Cash flow from investing activities(1,498)(2,724)(4,221)(1,226)Cash flow from financing activities2,62445,58743,31442,963Cash and cash equivalents Change from FY20241H FY2025FY20241H FY2024(Million of yen)5,502159,437153,935153,061Total assets6,022121,618115,596112,739Net assets1.2%76.3%75.1%73.7%Shareholder’s equity ratio(463)7,1727,6357,656Interest-bearing debtOur stable financial foundation was recognized, and the credit rating by Rating and Investment Information, Inc. (R&I) was upgraded by one notch from A- to AThe acquisition of treasury stock (¥1 billion) in August this year increased cash used in financing activities compared YoYBalance Sheet, Statement of Cash Flows
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Forecast for FY2025
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10 Change (YoY)FY2025 ForecastFY2024Percentage(％)AmountTo sales（％）To sales（％）(Million of yen)105.85,566ー102,000ー96,434Net sales130.64,05417.017,30013.713,246Operating income132.14,54618.318,70014.714,154Ordinary income130.73,16813.213,50010.710,332Net incomeーーー108.28 Yenー81.54 YenEarning per share108.63,11638.539,30037.536,184Overseas sales Forecast for FY2025 FY2025 ForecastFY2024Assumptions145 Yen152 YenYen / USDYen / EuroAverage exchange rate160 Yen163 Yen64,000 Yen75,800 YenYen / KLNaphtha price Expect continued profit growth driven by improved market conditions in the basic chemicals business and expansion in the healthcare businessFurther upward revision of the initial full year forecast, which projected record profits
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11 Basic chemicals : Strong profit growth expected from better epichlorohydrin market and cost reductionsFunctional chemicals : While the allyl ether market recovers more slowly than anticipated, expanded sales of synthetic rubber and other products expected to keep results at previous yearHealthcare :Effect of increased silica gel production expected from early 2026FY2025 Forecast by Segment Change (YoY)FY2025 ForecastFY2024Full Year2H1HFull Year2H1HFull Year2H1H(Millions of yen)4,4642,565 1,899 42,100 21,798 20,302 37,63619,23318,403Basic ChemicalsNet sales103 2,470 (2,367) 29,200 15,604 13,596 29,09713,13415,963Functional Chemicals1,316 779 537 15,000 8,291 6,709 13,6847,5126,172Healthcare(315) 1,089 (1,404) 15,700 7,477 8,223 16,0156,3889,627Trading and Others5,5666,901(1,335)102,00053,16848,83296,43446,26750,167Total3,625 1,726 1,899 5,900 2,954 2,946 2,2751,2281,047Basic ChemicalsOperating income23 657 (634) 4,350 2,424 1,926 4,3271,7672,560Functional Chemicals769 746 23 7,800 4,353 3,447 7,0313,6073,424Healthcare(154) (46) (108) 750 288 462 904334570Trading and Others(207) (171) (36) (1,500) (829) (671) (1,293)(658)(635)Company-wide, eliminations4,054 2,911 1,144 17,3009,1898,11113,2466,2786,967Total
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12 37,636 42,100 2,275 5,900 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 0 10,000 20,000 30,000 40,000 50,000 60,000 FY2024 FY2025ForecastNet salesOperating incomeToward achieving full production and full sales with existing capacity：Chlor-Alkali : Continue safe and stable operations and strengthen regionally-based salesEpichlorohydrin : Strengthen overseas sales to drive market share expansion Net sales (up ¥4.4 billion YoY)+1.6Chlor-alkali+2.8Epichlorohydrin2.25.9Salesunitprice+0.3FeedstockCosts+1.6Production and sales volume+2.1Fixed costs(0.3)FY2024 FY2025Forecast Segment (Basic Chemicals)(Millions of yen)Variance (Operating income, YoY) (Billions of yen)
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13 29,097 29,200 4,327 4,350 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 45,000 50,000 FY2024 FY2025ForecastNet salesOperating income Net sales (up ¥0.1 billion YoY)+0.8Synthetic rubber / Synthetic resin(0.1)Allyl ethers(0.6)etc. Synthetic rubber : Expect gradual recovery in automobile production volume; utilize acrylic rubber facility capacity to secure new adoptions both domestically and internationallySynthetic resin : Strive to grow market share for UV offset inks through sales expansion in Europe, U.S., and Asian marketsAllyl ethers : Maintain and expand market share through flexible sales strategies responding to market fluctuations4.3 4.3Salesunitprice(1.9)Feedstock costs+0.8Production and sales volume+1.4Fixed cost(0.3)FY2024 FY2025Forecast Segment (Functional Chemicals)(Millions of yen)Variance (Operating income, YoY) (Billions of yen)
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14 01232010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030Sales volume (Index)Manufacturing capacity (Index)※Indexed with sales volume and manufacturing capacity in FY 2010 as 1Our forecast Osaka Soda65%Other Companies35%Global Shares (Allyl Ethers)(Our estimates based onFY2024 results)Trends in Sales Volume and Manufacturing Capacity Allyl glycidyl ether is used as a raw material for epoxy-based silane coupling agents Demand is projected to grow steadily at an annual rate of 3–4%In October 2025, a decision was made to expand allyl ether production capacity (scheduled for completion in March 2027, approx. 1.2 times the current capacity)In December 2025, the expansion of the allyl ether shipping facility was completed (approx. double the current capacity)（times）Topics: Enhancement of Allyl Ethers (Fiscal Year)
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15 Chromatography : Demand for diabetes and obesity treatments continues to expand, and promotion of sales for biosimilarsIncorporate the revenue contribution from the Matsuyama Plant and the second-phase expansion of the Amagasaki Plant after the beginning of the new yearAPIs and their intermediates : Installed a GMP-compliant dedicated vessel for biopharmaceuticals in July 2025, focusing on securing new contract manufacturing projects13,684 15,000 7,031 7,800 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 18,000 0 5,000 10,000 15,000 20,000 FY2024 FY2025ForecastNet salesOperating income Net sales (up ¥1.3 billion YoY)+1.3Chromatography*±0.0APIs and their Intermediates7,07.8Salesunitprice＋0.1Production and sales volume＋1.4Fixed costs(0.7)FY2024 FY2025Forecast Segment (Healthcare)(Millions of yen) * Pharmaceutical purification materials(Silica gel), analytical equipment, packed columns Variance (Operating income, YoY) (Billions of yen)
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16 Consumer products : Factor in increased sales of planned products and semi-solid-state batteriesFunctional products : Expect steady demand for glass fiber and other products, especially in the electronics materials sectorBasic chemicals products : Sales of inorganic chemicals are expected to remain sluggish16,015 15,700 904 750 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 0 5,000 10,000 15,000 20,000 25,000 30,000 35,000 40,000 FY2024 FY2025ForecastNet salesOperating income Net sales (down ¥0.3 billion YoY)+0.7Consumer products+0.3Functional products(0.3)Specialty Polymer Materials(1.0)Basic chemicals products, etc.0.90.7Sales volume, etc.(0.2)FY2024 FY2025Forecast Segment (Trading and Others)(Millions of yen)Variance (Operating income, YoY) (Billions of yen)
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17 Following the upward revision of full-year earnings, the FY2025 dividend was raised by ¥5 to ¥25To enhance shareholder returns, the company decided on Nov 7 to repurchase ¥5 billion in shares, bringing the total (including ¥1 billion in August) to ¥6 billion, with the payout ratio expected to exceed 40% 1313131618181925 46.223.741.619.843.040.440.7020406080100051015202530FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025(Plan) Annual dividend per share (left scale)Dividend increase (left scale)Payout ratio (right scale)（Yen） （％）increased dividend 6.0*1.80.82.2ー1.0ー1.6Share buyback (Billion Yen)＊Figures include the planned amount for the acquisition of treasury stock, decided on November 7, 2025, with an acquisition period from November 10, 2025, to January 30, 2026, and an acquisition price capped at 5 billion yen.※Figures for dividend per share is converted after the stock split.(effective October 1, 2024) Shareholder Returns
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Silica Gel Business Expansion
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19156 269 482 1,000 1,500 05001,0001,5002,0002024 2025 2026 2030 2035Obesity Medications Market Size欧米新興国(インド、中国、その他)(billion dollars) 02462021 2022 2023 2024 2025Number of Peptide Pharmaceutical Companies (Emerging Markets)※Indexed with 2021 as 1 - 1 2 3 42021 2022 2023 2024 2025Silica Gel Sales Volume Trends(Emerging Markets)Our sales volume※Indexed with 2021 as 10 Toward capturing emerging market demandSince 2022, peptide pharmaceutical companies in emerging markets have grown 4.5 times in 5 yearsThe expansion of the medium-molecule drug market and the rise of the obesity medication market are driving new corporate entriesStrengthened sales efforts in India and China, achieving adoption by about 70% of target companiesComplete coverage of potential customers to capture robust demand for obesity medications(times)(times)(Year)CAGRapprox. 20%Europe, United States Emerging markets(India, China, others) CAGRapprox. 8％(Fiscal Year)(Fiscal Year)(Based on Morgan Stanley Research, our estimates)
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20 Matsuyamanew manufacturing facility Amagasaki1stphase expansion 01234567 2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Our Production Capacity and Silica Gel Demand ForecastManufacturing capacity Capacity expansionOperation responseDemand（10% per annum） Revising our demand forecastDecision planned for the next expansion within the yearSilica Gel Expansion Plans and Demand Trends(Capacity : times) Amagasaki2ndphase expansionBring forward the start of operations Assume demand will exceed production capacity(Fiscal Year) Demand expansion prompted the early commencement of operations for the Matsuyama and Amagasaki 2nd Phase expansionPatent expirations for obesity medications accelerate entry of generic China and IndiaAssumes demand will exceed current production capacity by 2028; plans to determine next expansion within this year
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21 Development of ADME GelsDeveloped ADME gel with an original modifying group as a new pharma-grade purification solutionCombines hydrophobic and hydrophilic properties, delivering unique separation performance beyond conventional modifiersExpected to be applied to nucleic acid drugs, a market anticipated to grow furtherStarted sample work globally for adoption purposesStructure with close proximity to a hydrophilic silica surface despite its hydrophobicityAbility to separate substances that could not be separated using conventional modifying groups, due to affinity with hydrophilic nucleic acid basesFeatures of ADME Gel C18 ADME1 2 345 61 2 345 60 2 4 6 8 10 12 14 16 18 20Separation of components 4, 5, and 6 is excellent（Minute ）Separate Performance Comparison with C18 GradeODS group(hydrophobic)Octadecyl group as a general-purpose modifying group(C18 group in a side-chain structure) ADME group（hydrophobic）Silica surface(Hydrophilic) Adamantyl ethyl group(cage-type C12 structure)SiXXXclose Separation targetSilica surface(Hydrophilic)distantSeparation target
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Contact : Osaka Soda Co., LTD.Public Relations Group, Corporate Planning DepartmentTEL : 06-7733-1005This document is not prepared for the purpose of soliciƟng investment in securiƟes issued by us. All information contained in this document represents our views as of the time of preparation of this document.Please note that we do not guarantee or promise accuracy and completeness.