Interim report
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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 . August 7 , 2026 Consolidated Financial Results for the First Three Months of the Fiscal Year Ending March 31 , 2027 ( Under Japanese GAAP ) Company name : Listing : Securities code : URL : Representative : Inquiries : Telephone : OSAKA SODA Co. , Ltd. Tokyo Stock Exchange 4046 http://www.osaka-soda.co.jp Kenshi Terada , Representative Director , President and Chief Executive Officer Toru Imamura , Executive Officer , General Manager , Administration Division + 81-6-7733-1001 Scheduled date to commence dividend payments Preparation of supplementary material on financial results Holding of financial results briefing : None : None ( Yen amounts are rounded down to millions , unless otherwise noted . ) 1. Consolidated financial results for the Three months ended June 30 , 2026 ( from April 1 , 2026 to June 30 , 2026 ) ( 1 ) Consolidated operating results ( cumulative ) ( Percentages indicate year - on - year changes . ) Net sales Operating profit Ordinary profit Profit attributable to owners of parent Three months ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % June 30 , 2026 June 30 , 2025 28,749 24,284 18.4 0.7 6,235 3,939 58.3 19.0 7,058 4,446 58.8 4,947 62.3 9.4 3,047 9.4 Note : Comprehensive income For the Three months ended June 30 , 2026 : For the Three months ended June 30 , 2025 : ¥ 6,757 million ¥ 3,283 million [ ( A13.6 ) % ] [ ( 105.8 ) % ] Basic earnings per share Diluted earnings per share Three months ended Yen Yen June 30 , 2026 June 30 , 2025 40.49 24.22 ( 2 ) Consolidated financial position Total assets Net assets Equity - to - asset ratio As of June 30 , 2026 March 31 , 2026 Millions of yen 170,999 168,741 Millions of yen % 130,448 128,541 76.3 76.2 Reference : Equity As of June 30 , 2026 : As of March 31 , 2026 : ¥ 130,448 million ¥ 128,541 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 6 － 12.00 － 16.00 28.00 Fiscal year ending March 31, 202 7 － Fiscal year ending March 31, 2027 (Forecast) 15.00 － 15.00 30.00 Note: Revisions to the forecast of cash dividends most recently announced: Yes 3. Consolidated financial results forecasts for the fiscal year ending March 31, 2027(from April 1, 2026 to March 31, 2027) (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 First half year （cumulative ） 54,000 10.6 10,300 27.0 11,200 25.7 7,600 12.5 62.40 Full year 108,000 8.0 20,500 16.2 22,100 12.7 14,800 △4.3 121.74 Note: Revisions to the forecast of consolidated fi nancial results most recently announced: Yes
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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 June 30, 202 6 133,660,085 shares As of March 31, 202 6 133,660,085 shares (ii) Number of treasury shares at the end of the pe riod As of June 30, 202 6 12,361,260 shares As of March 31, 202 6 10,808,065 shares (iii) Average number of shares outstanding during t he period (cumulative from the beginning of the fiscal year) Three months ended June 30, 202 6 122,172,299 shares Three months ended June 30, 202 5 125,855,505 shares * 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 three months 2 (2) Overview of financial position for the first three months 3 (3) Analysis of forward-looking statement, including consolidated financial results forecasts 3 2. Quarterly Consolidated Financial Statements and significant notes thereto 4 (1) Consolidated Balance Sheets 4 (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income 6 (3) Notes to Quarterly Consolidated Financial Statements 8 (Notes on Premise of Going Concern) 8 (Notes on Major Changes in Shareholders’ Equity) 8 (Notes on Quarterly Consolidated Statements of Cash Flows) 8 (Notes on Segment Information and Other Items) 9
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- 2 - 1. Overview of operating results, etc. (1) Overview of operating results for the first three months During the first three 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 outlook remains uncertain due to factors such as the impact of the situation in the Middle East. In light of these circumstances, our group has launched a new medium-term management plan, “Transform Our Future 2030” (FY2026 to FY2030), and is implementin g specific measures in line with the plan’s three basic policies: “Rebuilding the Value of Existing Businesses and Accelerating Growth in Healthcare,” “Creati ng New Businesses by Mobilizing Companywide Capabilities,” and “Strengthening the Management Foundation to Ad apt to Changes in the Business Environment.” In terms of “Rebuilding the Value of Existing Businesses and Accelerating Growth in Healthcare,” we wi ll promote portfolio management to enhance the competitiveness of existing businesses and accelerate growth in the field of healthcare. For our existing businesses, we are working to increase sales volume by expanding our market share and growing alternative demand, and to strengthen competitiveness by investing in resilience and cost reduction measures to improve production efficiency. In the field of healthcare, with regard to pharmaceutical purification materials, for which demand is expanding for diabetes medications and obesity medications, we are proceeding as planned to approximately double the current production capacity by February 2028, and are also working to expand sales in countries such as China and India, which are newer entrants to the market. In terms of “Creating New Businesses by Mobilizing Companywide Capabilities,” we are working to drive the creation of new products by leveraging our proprietary technologies, mainly in the areas of “electroni c materials” and “life science materials,” while strategically u tilizing the knowledge, networks, and other resources of corporate divisions throughout the company. In the field of “electronic materials,” we are positioning high-ionic- conductivity materials for all-solid-state batteries as our next Global Niche Top product, and are aiming to commercialize them by 2030. In the field of “life s cience materials,” we are looking to strengthen the field of VHH antibodies in biopharmaceuticals by acquiring a portion of the shares of Epsilon Molecular Engineering with the aim of developing and commercializing materials that contribute to improving QoL. In addition, with regard to lactic acid bacterium OS-1010, we aim to further expand sales through the acceptance of our notification as a “Food with Function Claims” regarding its effe ct on maintaining skin elasticity. In terms of “Strengthening the Management Foundatio n to Adapt to Changes in the Business Environment,” we will work on measures related to our “human resourc e strategy,” “DX promotion,” “safe and stable produ ction,” “risk management,” and “carbon neutrality,” in orde r to strengthen sustainability management with the aim of realizing an organization that is both efficient and adaptable. In addition, as a result of our efforts to enhance ESG information disclosure, our ESG score improved and we were selected for inclusion in the FTSE Blossom Japan Index. We will continue to work to earn the trust of investors and other stakeholders. Regarding the situation in the Middle East, we aim to minimize the impact by working to secure the necessary raw materials and implementing timely price revisions for our products in response to rising raw material costs. As a result of the above, Net sales for the first three months of the current consolidated fiscal year increased 18.4% year on year to ¥28,749 million. In terms of profit, operating income increased 58.3% year on year to ¥6,235 million, ordinary income increased 58.8% year on year to ¥7,058 million, and profit attributable to owners of parent increased 62.3% year on year to ¥4,947 million. Net sales and each stage of income for the first three months of the consolidated fiscal year reached record highs. <Basic Chemicals> Net sales of Chlor-Alkali products increased due to an increase in sales volume and price revisions for hydrochloric acid and sodium hypochlorite. Net sales of Epichlorohydrin increased due to an increase in sales volume and price revisions. As a result of the above, net sales in the Basic chemicals business increased 17.4% year on year to ¥11,273 million.
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- 3 - <Functional Chemicals> In the Synthetic rubbers business, net sales increased due to price revisions, an increase in sales volume of Acrylic Rubber mainly in India, where automobile and motorcycle production is strong, and an increase in sales volume of Epichlorohydrin Rubber mainly in China, partly due to an increase in inventories by customers. For synthetic resins, net sales of DAP resin increased due to price revisions and an increase in sales volume mainly in China, reflecting the impact of increases in inventories by customers. For Allyl Ethers, while sales volume declined, net sales increased due in part to soaring market prices in China. As a result of the above, net sales in the Functional chemicals business increased 17.5% year on year to ¥8,276 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 increased due to an increase in sales of intermediates for insomnia treatment drugs, APIs for pulmonary tuberculosis treatment, and intermediates for anti-ulcer drugs. As a result of the above, net sales in the Healthcare business increased 43.3% year on year to ¥4,380 million. <Trading and Others> Net sales increased due to increased sales of inorganic chemicals and glass fiber. As a result of the above, net sales in the Trading and others business increased 5.2% year on year to ¥4,818 million. (2) Overview of financial position for the first three months (Assets) Current assets were ¥96,738 million, a decrease of 1.5% since March 31, 2026. This was due primarily to a decrease of ¥6,396 million in cash and deposits. Noncurrent assets were ¥74,261 million, an increase of 5.3% since March 31, 2026. This was due primarily to increases of ¥2,648 million in investment securities and ¥535 million in construction in progress. As a result, total assets at the end of the first three months of the consolidated accounting period were ¥170,999 million, an increase of 1.3% since March 31, 2026. (Liabilities) Current liabilities were ¥30,852 million, a decrease of 2.2% since March 31, 2026. This was due primarily to decreases of ¥2,115 million in income taxes payable and ¥455 million in provision for bonuses. Noncurrent liabilities were ¥9,698 million, an increase of 12.1% since March 31, 2026. This was due primarily to an increase of ¥1,103 million in deferred tax liabilities. As a result, liabilities at the end of the first three months of the consolidated accounting period were ¥40,550 million, an increase of 0.9% since March 31, 2026. (Net assets) Net assets at the end of the first three months of the consolidated accounting period were ¥130,448 million, an increase of 1.5% since March 31, 2026. This was due primarily to an increase of ¥2,884 million in treasury shares resulting from the acquisition of treasury stock, an increase of ¥2,981 million in retained earnings, and an increase of ¥1,781 million in valuation difference on available-for-sale securities. (3) Analysis of forward-looking statement, including consolidated financial results forecasts Based on recent business trends and other factors, we revised the consolidated earnings forecast for the first half (cumulative) and the full fiscal year ending March 2027 that was announced on May 12, 2026. For details, please refer to the “Notice of Revisio ns to Earnings Forecast and Dividend Forecast” rele ased today (August 7, 2026).
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- 4 - 2. Quarterly Consolidated Financial Statements and significant notes thereto (1) Consolidated Balance Sheets (Millions of yen) As of March 31, 2026 As of June 30, 2026 Assets Current assets Cash and deposits 21,855 15,459 Notes and accounts receivable - trade, and contract assets 26,466 29,651 Electronically recorded monetary claims - operating 3,470 3,514 Securities 26,946 26,939 Merchandise and finished goods 10,994 12,626 Work in process 1,746 1,786 Raw materials and supplies 5,088 4,984 Other 1,690 1,795 Allowance for doubtful accounts △7 △19 Total current assets 98,250 96,738 Non-current assets Property, plant and equipment Buildings and structures, net 9,430 9,350 Machinery, equipment and vehicles, net 14,118 15,034 Land 2,242 2,152 Leased assets, net 480 460 Construction in progress 3,136 3,671 Other, net 533 545 Total property, plant and equipment 29,941 31,215 Intangible assets Goodwill 73 62 Software 2,266 2,185 Other 30 35 Total intangible assets 2,370 2,283 Investments and other assets Investment securities 37,025 39,673 Long-term loans receivable 6 6 Deferred tax assets 223 147 Other 1,500 1,513 Allowance for doubtful accounts △577 △577 Total investments and other assets 38,178 40,762 Total non-current assets 70,490 74,261 Total assets 168,741 170,999
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- 5 - (Millions of yen) As of March 31, 2026 As of June 30, 2026 Liabilities Current liabilities Notes and accounts payable - trade 13,869 15,865 Short-term borrowings 7,172 7,172 Income taxes payable 4,108 1,992 Provision for bonuses 972 517 Other 5,424 5,304 Total current liabilities 31,547 30,852 Non-current liabilities Lease liabilities 554 528 Deferred tax liabilities 5,999 7,102 Retirement benefit liability 653 631 Asset retirement obligations 658 658 Other 785 777 Total non-current liabilities 8,652 9,698 Total liabilities 40,199 40,550 Net assets Shareholders' equity Share capital 15,871 15,871 Capital surplus 17,026 17,026 Retained earnings 88,849 91,831 Treasury shares △12,405 △15,290 Total shareholders' equity 109,342 109,438 Accumulated other comprehensive income Valuation difference on available-for- sale securities 17,572 19,354 Deferred gains or losses on hedges 79 58 Foreign currency translation adjustment 669 732 Remeasurements of defined benefit plans 877 864 Total accumulated other comprehensive income 19,199 21,009 Total net assets 128,541 130,448 Total liabilities and net assets 168,741 170,999
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- 6 - (2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income Consolidated Statements of Income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Net sales 24,284 28,749 Cost of sales 16,501 18,232 Gross profit 7,782 10,516 Selling, general and administrative expenses 3,842 4,281 Operating profit 3,939 6,235 Non-operating income Interest income 42 68 Dividend income 580 572 Share of profit of entities accounted for using equity method 5 7 Foreign exchange gains － 122 Subsidy income 56 73 Other 47 45 Total non-operating income 731 890 Non-operating expenses Interest expenses 45 41 Foreign exchange losses 167 － Other 12 25 Total non-operating expenses 225 66 Ordinary profit 4,446 7,058 Extraordinary income Gain on sale of non-current assets － 118 Total extraordinary income － 118 Extraordinary losses Loss on retirement of non-current assets 48 85 Total extraordinary losses 48 85 Profit before income taxes 4,397 7,092 Income taxes - current 1,050 1,784 Income taxes - deferred 299 360 Total income taxes 1,350 2,144 Profit 3,047 4,947 Loss attributable to non-controlling interests △0 － Profit attributable to owners of parent 3,047 4,947
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- 7 - Consolidated Statements of Comprehensive Income (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Profit 3,047 4,947 Other comprehensive income Valuation difference on available-for- sale securities 7 1,781 Deferred gains or losses on hedges △22 △21 Foreign currency translation adjustment 267 42 Remeasurements of defined benefit plans, net of tax △8 △13 Share of other comprehensive income of entities accounted for using equity method △7 20 Total other comprehensive income 236 1,810 Comprehensive income 3,283 6,757 Comprehensive income attributable to Comprehensive income attributable to owners of parent 3,285 6,757 Comprehensive income attributable to non- controlling interests △2 －
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- 8 - (3) Notes to Quarterly Consolidated Financial Statements (Notes on Premise of Going Concern) Not applicable (Notes on Major Changes in Shareholders’ Equity) Based on a resolution of the Board of Directors adopted on May 12, 2026, the Company acquired 1,553,100 shares of treasury stock. As a result, treasury shares increased by ¥2,884 million during the first three months of the consolidated fiscal year, and treasury shares amounted to ¥15,290 million at the end of the first three months of the consolidated accounting period. (Notes on Quarterly Consolidated Statements of C ash Flows) Quarterly consolidated statements of cash flows for the first three months of the current consolidated fiscal year have not been prepared. Depreciation expenses (including amortization related to intangible fixed assets excluding goodwill) and amortization of goodwill for the first three months of the consolidated fiscal year are as follows. (Millions of yen) Three months ended June 30, 2025 Three months ended June 30, 2026 Depreciation 1,023 1,222 Amortization of goodwill 11 11
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- 9 - (Notes on Segment Information and Other Items) The Three months ended June 30, 2025 (from April 1, 2025 to June 30, 2025) (Millions of yen) Basic chemicals Functional chemicals Healthcare Trading and Others Total Adjustments *1 Consolidated *2 Net sales Japan 8,441 1,935 697 4,153 15,228 － 15,228 China － 2,233 435 283 2,951 － 2,951 Asia 827 1,255 788 85 2,957 － 2,957 Europe 167 909 861 48 1,987 － 1,987 Others 168 711 272 6 1,159 － 1,159 Revenue from Contracts with Customers 9,604 7,044 3,056 4,578 24,284 － 24,284 Other Revenue － － － － － － － External sales 9,604 7,044 3,056 4,578 24,284 － 24,284 Intersegment sales or reclassifications 2 207 － 921 1,131 (1,131) － Total 9,607 7,252 3,056 5,499 25,415 (1,131) 24,284 Segment income 1,232 1, 042 1, 676 323 4,275 (335 ) 3,939 Notes: (1) Adjustments of segment income of ¥ (335) millio n are corporate expenses not allocated to reportable segments. Most of above-mentioned corporate expenses 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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- 10 - The Three months ended June 30, 2026 (from April 1, 2026 to June 30, 2026) (Millions of yen) Basic chemicals Functional chemicals Healthcare Trading and Others Total Adjustments *1 Consolidated *2 Net sales Japan 9,309 2,217 1,038 4,306 16,871 － 16,871 China － 3,001 716 385 4,103 － 4,103 Asia 1,707 1,444 764 122 4,038 － 4,038 Europe 163 886 1,469 － 2,519 － 2,519 Others 93 726 390 5 1,216 － 1,216 Revenue from Contracts with Customers 11,273 8,276 4,380 4,818 28,749 － 28,749 Other Revenue － － － － － － － External sales 11,273 8,276 4,380 4,818 28,749 － 28,749 Intersegment sales or reclassifications 0 231 － 391 623 (623) － Total 11,274 8,507 4,380 5,210 29,372 (623 ) 28,749 Segment income 1,641 2,438 2,152 322 6,554 (319 ) 6,235 Notes: (1) Adjustments of segment income of ¥ (319) 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.