Interim report
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Note: This document has been translated from the Ja panese original for reference purposes only. In the event of any discrepancy between this translated document and the Japanese original, the original shall prevail. November 7, 2025 Consolidated Financial Results for the Six Months of the Fiscal Year Ending March 31, 2026 (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 Direc tor, President and Chief Executive Officer Inquiries: Toru Imamura, Executive Officer, General Manager, Administration Division Telephone: +81-6-7733-1001 Scheduled date to file quarterly securities report: November 10, 2025 Scheduled date to commence dividend payments December 4, 2025 Preparation of supplementary material on financial results : Yes Holding of financial results briefing : Yes (Yen amounts are rounded down to millions, unless otherwise noted.) 1. Consolidated financial results for the Six months e nded September 30, 2025 (from April 1, 2025 to Sept ember 30, 2025) (1) Consolidated operating results (cumulative) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Six months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % September 30, 2025 48,832 (2.7) 8,111 16.4 8,910 24.0 6,755 38.8 September 30, 2024 50,167 7.6 6,967 41.7 7,185 19.4 4,866 20.4 Note: Comprehensive income For the Six months ended September 30, 2025: ¥8,270 million [101.4%] For the Six months ended September 30, 2024: ¥4,105 million [(45.4)%] Basic earnings per share Diluted earnings per share Six months ended Yen Yen September 30, 2025 53.74 － September 30, 2024 38.36 － Note: The Company implemented a 5-for-1 stock split for common shares with an effective October 1, 2024. Basic earnings per share is calculated based on the assumption that the stock split was implemented at the beginning of previous fiscal year. (2) Consolidated financial position Total assets Net assets Equity-to-asset ratio As of Millions of yen Millions of yen % September 30, 2025 159,437 121,618 76.3 March 31, 2025 153,935 115,596 75.1 Reference: Equity As of September 30, 2025: ¥121,614 million As of March 31, 2025: ¥115,591 million
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2. Cash dividends Annual dividends per share First quarter -end Second quarter -end Third quarter -end Fiscal year -end Total Yen Yen Yen Yen Yen Fiscal year ended March 31, 202 5 － 45.00 － 10.00 － Fiscal year ending March 31, 202 6 － 12.00 Fiscal year ending March 31, 2026 (Forecast) － 13.00 25.00 Note: 1. Revisions to the forecast of cash dividends most recently announced: Yes 2. Regarding revision of forecast for dividend, please refer to “Notice Concerning Revisions to Financial Results Forecasts and the Interim Dividend and the Year-End Dividend Forecasts for the Fiscal Year Ending March 31, 2026” announced on November 7, 2025. 3. The Company implemented a 5-for-1 stock spl it for common shares with an effective October 1, 2024. For the fiscal year ended March 31, 2025, the interim dividend is presented based on the number of shares before the stock split, while the year- end dividend is shown based on the number of shares after the stock split. As a result, the total full-year dividend is displayed as “-”. 3. Consolidated financial results forecasts for the fi scal year ending March 31, 2026 (from April 1, 2025 to March 31, 2026) (Percentages indicate year-on-year changes.) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Basic earnings Per share Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Full year 102,000 5.8 17,300 30.6 18,700 32.1 13,500 30.7 108.28 Note: 1. Revisions to the forecast of consolidated financial results most recently announced: Yes 2. Regarding revision of forecast for consolid ated financial results, please refer to “Notice Con cerning Revisions to Financial Results Forecasts and the Interim Dividend and the Year-End Dividend Forecasts for the Fiscal Year Ending March 31, 2026” announced on November 7, 2025.
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* 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 th e preparation of quarterly consolidated financial statements: None (3) Changes in accounting policies, changes in acco unting 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 re asons: 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, 202 5 133 ,660 ,085 shares As of March 31, 202 5 133 ,660 ,085 shares (ii) Number of treasury shares at the end of the pe riod As of September 30, 202 5 8,323,335 shares As of March 31, 202 5 7,804,540 shares (iii) Average number of shares outstanding during t he period (cumulative from the beginning of the fiscal year) Six months ended September 30, 202 5 125, 706 ,454 shares Six months ended September 30, 202 4 126,865, 076 shares Note: Total number of issued shares at the end of the period, Number of treasury shares at the end of period and Average number of shares outstanding during the period are calculated based on the assumption that the stock split was implemented at the beginning of previous fiscal year. * Review of the Japanese-language originals of the attached consolidated quarterly consolidated financial statement contained in this report by certified public accountants or an audit corporation: None * Proper use of earnings forecasts, and other speci al matters In this document, statements other than historical facts are forward looking statements that reflect the Company’s plans and expectations. These forward-looking statements involve risks, uncertainties and other factors that may cause our actual results and achievements to differ from those anticipated in these statements. Please refer to “1. Overview of operating results, etc. (3) Analysis of Forward-looking Statement, In cluding Consolidated financial results Forecasts” on page 3 of the attached documents.
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- 1 - (Attached Documents) INDEX 1. Overview of operating results, etc. 2 (1) Overview of operating results for the first six months 2 (2) Overview of financial position for the first six months 3 (3) Analysis of forward-looking statement, including consolidated financial results forecasts 4 2. Quarterly Consolidated Financial Statements and significant notes thereto 5 (1) Consolidated Balance Sheets 5 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 7 (3) Consolidated Statements of Cash Flows 9 (4) Notes to Quarterly Consolidated Financial Statements 10 (Notes on Premise of Going Concern) 10 (Notes on Major Changes in Shareholders’ Equity) 10 (Notes on Segment Information and Other Items) 11
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- 2 - 1. Overview of operating results, etc. (1) Overview of operating results for the first six months For the first six months of the current consolidated fiscal year, the Japanese economy continued its gradual recovery, with an improvement in the employment and income situation and a pickup in consumer spending and capital investment. On the other hand, the risk of a downward swing in the economy is increasing due to factors such as the impact of U.S. tariffs, stagnation of the Chinese economy, and continuing price hikes, and the outlook remains uncertain. In light of these circumstances, for this final year of our medium-term management plan, Shape the Future-2025 (FY2023 to FY2025), our group has been steadily implementing specific measures in line with the plan’s three basic policies: continuous strengthening of our base in existing businesses, strengthening of new product creation capabilities, and promotion of sustainability management. In terms of the “continuous strengthening of our ba se in existing businesses,” we have been working to enhance our business base by generating stable cash flows and actively investing in growth areas. In the Basic chemicals business, in addition to efforts aimed at reducing costs, we have been working to improve profitability by aggressively expanding sales of Epichlorohydrin as overseas market conditions improve. We will continue to invest in upgrading facilities to improve production efficiency and reduce costs in order to strengthen business foundations so that we can generate stable earnings. In the Functional chemicals business, we were able to increase sales by promoting sales expansion activities to existing customers and the promoting new business development, but sales for some products decreased as a result of reduced demand. In the Healthcare business, the demand for pharmaceutical purification materials for diabetes and obesity medications has continued to expand, and sales volume has been steadily increasing. Following the completion of new facilities at the Matsuyama Plant in September 2024, construction of the expansion of the Amagasaki Plant was also completed in September 2025, approximately one year ahead of schedule, creating a supply system that can meet the current increase in demand. Furthermore, in anticipation of future increases in demand, detailed analyses for the next production increase plan are also underway with a view to making a decision regarding investment before the end of 2025. In terms of the “strengthening of new product creat ion capabilities,” the development of materials for next- generation storage batteries, such as ultra-high ionic conductive polymers for all-solid batteries, which were selected as a NEDO Green Innovation Fund project, is progressing smoothly. We are considering building a pilot facility during this fiscal year to establish a mass production system. Regarding the size exclusion and highly alkali-resistant columns launched last year, we are working to expand new adoption and sales are steadily increasing. For ADME gel for preparative use, we have started sample work for customers in working toward adoption. For lactic acid bacterium OS-1010, following its function of maintaining skin elasticity, we started human trials on maintaining cognitive function, etc., which has been progressing smoothly. In terms of the “promotion of sustainability manage ment,” we have reviewed our policy on ESG disclosur e initiatives and improved our ESG score. We are expanding opportunities for dialogue with institutional investors, and, taking into account the opinions obtained through such discussions, we are working to enhance shareholder returns by improving capital efficiency and introducing progressive dividends. Aiming to develop human resources by promoting operational reform activities as part of our investment in human capital, we relocated our head office in August 2025 in order to create a comfortable work environment and improve employee engagement. Net sales for the first six months of the current consolidated fiscal year decreased 2.7% year on year to ¥48,832 million. In terms of profit, operating profit increased 16.4% year on year to ¥8,111 million, ordinary profit increased 24.0% year on year to ¥8,910 million, and profit attributable to owners of parent increased 38.8% year on year to ¥6,755 million. < Basic chemicals > Net sales of Chlor-Alkali products increased due to an increase in sales volume resulting from the resolution of supply problems caused by the manufacturing equipment problems at the Mizushima Plant. Net sales of Epichlorohydrin increased due to an increase in sales volume resulting from the resolution of supply problems and improved overseas market conditions. As a result of the above, net sales in the Basic chemicals business increased 10.3% year on year to ¥20,302 million.
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- 3 - < Functional chemicals > In the Synthetic rubbers business, net sales of Acrylic Rubber increased due to increased production capacity resulting from the completion of last year’s debottlenecking, but net sales of Epichlorohydrin Rubber decreased due to a decline in automobile production in regions such as Europe. For synthetic resins, net sales of DAP resin declined due to sluggish demand for UV inks in China and Japan, but net sales of DAP monomer increased due to replacing competing products in the U.S. Net sales of Allyl Ethers decreased due to lower demand in Europe and softening market conditions in China. As a result of the above, net sales in the Functional chemicals business decreased14.8% year on year to ¥13,596 million. <Healthcare> Net sales of pharmaceutical purification materials increased due to a steady growth in demand for diabetes and obesity medications. Net sales of active pharmaceutical ingredients (APIs) and their intermediates decreased, as although sales of intermediates for anticancer drugs and antianginal drug substances increased, sales of intermediates of medications for diabetes complications and osteoporosis drug substances decreased. As a result of the above, net sales in the Healthcare business increased 8.7% year on year to ¥6,709 million. <Trading and Others> Net sales decreased due to a decline in sales of inorganic chemicals and building materials. As a result of the above, net sales in the Trading and others business decreased 14.6% year on year to ¥8,223 million. (2) Overview of financial position for the first six months (Assets) Current assets were ¥95,477 million, an increase of 2.8% since March 31, 2025. This was due primarily to a decrease of ¥2,281 million in cash and deposits. Noncurrent assets were ¥63,959 million, an increase of 4.8% since March 31, 2025. This was due primarily to an increase of ¥2,278 million in investment securities. As a result, total assets at the end of the first six months of the consolidated accounting period were ¥159,437 million, an increase of 3.6% since March 31, 2025. (Liabilities) Current liabilities were ¥30,146 million, a decrease of 4.0% since March 31, 2025. This was due primarily to decreases of ¥1,075 million in accounts payable-other included in other. Noncurrent liabilities were ¥7,672 million, an increase of 10.4% since March 31, 2025. This was due primarily to an increase of ¥555 million in deferred tax liabilities. As a result, liabilities at the end of the first six months of the consolidated accounting period were ¥37,819 million, a decrease of 1.4% since March 31, 2025. (Net assets) Net assets at the end of the first six months of the consolidated accounting period were ¥121,618 million, an increase of 5.2% since March 31, 2025. This was due primarily to an increase of ¥5,496 million in retained earnings.
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- 4 - (Cash flows) Cash and cash equivalents at the end of the first six months of the consolidated accounting period increased by ¥2,273 million compared to the end of the previous fiscal year to ¥45,587 million. Cash flows for the first six months of the consolidated fiscal year and their factors are as follows. ① Cash flow from operating activities was ¥7,988 million (compared to ¥10,117 million in the same period of the previous fiscal year). This was mainly due to a profit before income taxes of ¥9,623 million, depreciation expenses of ¥2,062 million and income taxes paid ¥2,707 million. ② Cash flow from investment activities was ¥2,733 million (compared to ¥4,483 million in the same period of the previous fiscal year). This was mainly due to the purchase of property, plant and equipment of ¥3,322 million. ③ Cash flow from financing activities was ¥2,724 million (compared to ¥1,226 million in the same period of the previous fiscal year). This was mainly due to the payment of ¥1,243 million in dividends and purchase of treasury shares ¥1,000 million. (3) Analysis of forward-looking statement, including consolidated financial results forecasts Based on factors such as recent performance trends, the full-year consolidated performance forecast announced on May 9, 2025, has been revised. For further details, please refer to “Notice Concerning Revisions to Fi nancial Results Forecasts and the Interim Dividend and the Year-End Dividend Forecasts for the Fiscal Year Ending March 31, 2026” announced on November 7, 2025.
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- 5 - 2. Quarterly Consolidated Financial Statements and significant notes thereto (1) Consolidated Balance Sheets (Millions of yen) As of March 31, 2025 As of September 30, 2025 Assets Current assets Cash and deposits 16,339 18,620 Notes and accounts receivable - trade, and contract assets 25,742 25,697 Electronically recorded monetary claims - operating 4,576 4,948 Securities 26,974 26,966 Merchandise and finished goods 9,817 9,693 Work in process 2,280 3,042 Raw materials and supplies 5,707 4,939 Other 1,496 1,588 Allowance for doubtful accounts △19 △19 Total current assets 92,916 95,477 Non-current assets Property, plant and equipment Buildings and structures, net 9,490 9,545 Machinery, equipment and vehicles, net 14,675 14,074 Land 2,246 2,246 Leased assets, net 531 497 Construction in progress 1,979 3,069 Other, net 371 421 Total property, plant and equipment 29,295 29,854 Intangible assets Goodwill 118 95 Software 82 57 Other 1,320 1,713 Total intangible assets 1,521 1,866 Investments and other assets Investment securities 28,510 30,788 Long-term loans receivable 9 8 Deferred tax assets 715 460 Other 1,544 1,557 Allowance for doubtful accounts △578 △577 Total investments and other assets 30,201 32,237 Total non-current assets 61,018 63,959 Total assets 153,935 159,437
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- 6 - (Millions of yen) As of March 31, 2025 As of September 30, 2025 Liabilities Current liabilities Notes and accounts payable - trade 13,117 13,540 Short-term borrowings 7,172 7,172 Current portion of long-term borrowings 76 － Income taxes payable 2,947 3,060 Provision for bonuses 953 952 Other 7,119 5,420 Total current liabilities 31,385 30,146 Non-current liabilities Long-term borrowings 387 － Lease liabilities 675 606 Deferred tax liabilities 3,973 4,528 Retirement benefit liability 1,207 1,094 Asset retirement obligations 557 656 Other 150 787 Total non-current liabilities 6,953 7,672 Total liabilities 38,339 37,819 Net assets Shareholders' equity Share capital 15,871 15,871 Capital surplus 17,020 17,026 Retained earnings 76,151 81,647 Treasury shares △6,410 △7,405 Total shareholders' equity 102,633 107,140 Accumulated other comprehensive income Valuation difference on available-for- sale securities 11,316 12,895 Deferred gains or losses on hedges △56 22 Foreign currency translation adjustment 1,026 902 Remeasurements of defined benefit plans 671 653 Total accumulated other comprehensive income 12,957 14,473 Non-controlling interests 4 3 Total net assets 115,596 121,618 Total liabilities and net assets 153,935 159,437
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- 7 - (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Consolidated Statements of Income (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Net sales 50,167 48,832 Cost of sales 35,513 32,880 Gross profit 14,654 15,951 Selling, general and administrative expenses 7,686 7,840 Operating profit 6,967 8,111 Non-operating income Interest income 27 83 Dividend income 456 618 Share of profit of entities accounted for using equity method 10 10 Foreign exchange gains － 7 Subsidy income 99 111 Other 86 68 Total non-operating income 679 899 Non-operating expenses Interest expenses 55 75 Foreign exchange losses 299 － Loss on tax purpose reduction entry of non-current assets 25 － Other 81 25 Total non-operating expenses 462 100 Ordinary profit 7,185 8,910 Extraordinary income Gain on sale of businesses － 314 Gain on sale of investment securities － 562 Total extraordinary income － 877 Extraordinary losses Loss on retirement of non-current assets 84 102 Head office relocation expenses － 62 Total extraordinary losses 84 164 Profit before income taxes 7,100 9,623 Income taxes - current 2,237 2,829 Income taxes - deferred △0 37 Total income taxes 2,236 2,866 Profit 4,864 6,756 Profit (Loss) attributable to non- controlling interests △2 1 Profit attributable to owners of parent 4,866 6,755
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- 8 - Consolidated Statements of Comprehensive Income (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Profit 4,864 6,756 Other comprehensive income Valuation difference on available-for- sale securities △708 1,579 Deferred gains or losses on hedges △280 78 Foreign currency translation adjustment 236 △114 Remeasurements of defined benefit plans, net of tax △7 △17 Share of other comprehensive income of entities accounted for using equity method 2 △12 Total other comprehensive income △758 1,513 Comprehensive income 4,105 8,270 Comprehensive income attributable to Comprehensive income attributable to owners of parent 4,105 8,271 Comprehensive income attributable to non- controlling interests 0 △0
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- 9 - (3) Consolidated Statements of Cash Flows (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Cash flows from operating activities Profit before income taxes 7,100 9,623 Depreciation 1,873 2,062 Amortization of goodwill 22 22 Increase (decrease) in allowance for doubtful accounts 0 △0 Increase (decrease) in provision for bonuses 1 △1 Increase (decrease) in retirement benefit liability △97 △113 Interest and dividend income △483 △702 Interest expenses 55 75 Foreign exchange losses (gains) 121 △8 Loss on retirement of non-current assets 84 102 Loss on tax purpose reduction entry of non- current assets 24 － Share of loss (profit) of entities accounted for using equity method △10 △10 Subsidy income △99 △111 Loss (gain) on sale of short-term and long-term investment securities － △562 Loss (gain) on sale of businesses － △314 Decrease (increase) in accounts receivable - trade, and contract assets 3,619 97 Decrease (increase) in inventories △120 97 Increase (decrease) in trade payables △1,238 △19 Increase (decrease) in accrued consumption taxes 4 1 Other, net △107 △195 Subtotal 10,751 10,041 Subsidies received 25 11 Interest and dividends received 483 717 Interest paid △55 △75 Income taxes paid △1,087 △2,707 Net cash provided by (used in) operating activities 10,117 7,988
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- 10 - (Millions of yen) Six months ended September 30, 2024 Six months ended September 30, 2025 Cash flows from investing activities Purchase of property, plant and equipment △3,457 △3,322 Purchase of intangible assets △789 △430 Purchase of investment securities △10 △10 Proceeds from sale of investment securities － 600 Proceeds from sale of businesses － 419 Subsidies received 74 100 Other, net △300 △89 Net cash provided by (used in) investing activities △4,483 △2,733 Cash flows from financing activities Repayments of long-term borrowings △39 △433 Purchase of treasury shares △1 △1,000 Dividends paid △1,127 △1,243 Other, net △57 △47 Net cash provided by (used in) financing activities △1,226 △2,724 Effect of exchange rate change on cash and cash equivalents 123 △256 Net increase (decrease) in cash and cash equivalents 4,531 2,273 Cash and cash equivalents at beginning of period 38,432 43,314 Cash and cash equivalents at end of period 42,963 45,587 (4) Notes to Quarterly Consolidated Financial Statements (Notes on Premise of Going Concern) Not applicable (Notes on Major Changes in Shareholders’ Equity) Not applicable
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- 11 - (Notes on Segment Information and Other Items) The Six months ended September 30, 2024 (from April 1, 2024 to September 30, 2024) (Millions of yen) Basic chemicals Functional chemicals Healthcare Trading and Others Total Adjustments *1 Consolidated *2 Net sales Japan 17,250 4,387 1,504 7,512 30,654 30,654 China － 4,388 653 1,759 6,801 － 6,801 Asia 815 2,991 1,195 244 5,246 － 5,246 Europe 166 2,391 2,345 105 5,008 － 5,008 Others 171 1,804 472 5 2,454 － 2,454 Revenue from Contracts with Customers 18,403 15,963 6,172 9,627 50,167 － 50,167 Other Revenue － － － － － － － External sales 18,403 15,963 6,172 9,627 50,167 － 50,167 Intersegment sales or reclassifications 0 376 － 1,812 2,189 (2,189) － Total 18,404 16,339 6,172 11,440 52,356 (2,189 ) 50,167 Segment income 1,047 2,560 3,424 570 7,603 (635 ) 6,967 Notes: (1) Adjustments of segment income of ¥ (635) millio n are corporate expenses not allocated to reportable segments. Most of above-mentioned corporate expense s are not attributable to a reporting segment and related to fundamental research and development. (2) Segment income is adjusted to operating income of consolidated statement of income.
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- 12 - The Six months ended September 30, 2025 (from April 1, 2025 to September 30, 2025) (Millions of yen) Basic chemicals Functional chemicals Healthcare Trading and Others Total Adjustments *1 Consolidated *2 Net sales Japan 17,070 4,034 1,571 7,322 29,999 － 29,999 China － 4,337 1,032 607 5,977 － 5,977 Asia 2,322 2,507 1,812 219 6,861 － 6,861 Europe 381 1,475 1,744 59 3,660 － 3,660 Others 527 1,240 548 15 2,331 － 2,331 Revenue from Contracts with Customers 20,302 13,596 6,709 8,223 48,832 － 48,832 Other Revenue － － － － － － － External sales 20,302 13,596 6,709 8,223 48,832 － 48,832 Intersegment sales or reclassifications 2 344 － 1,742 2,089 (2,089) － Total 20,304 13,941 6,709 9,965 50,921 (2,089 ) 48,832 Segment income 2,946 1,926 3,447 462 8,782 (671 ) 8,111 Notes: (1) Adjustments of segment income of ¥ (671) millio n are corporate expenses not allocated to reportabl e segments. Most of above-mentioned corporate expense s are not attributable to a reporting segment and related to fundamental research and development . (2) Segment income is adjusted to operating income of consolidated statement of income.