Osaka Soda Co.,ltd.TSE: 4046

1H FY2025 Presentation Material - Results for 1H FY2025 & Full-Year Forecast

· Issued by Osaka Soda Co.,ltd.


1H FY2025 Presentation Material

- Results for 1H FY2025 & Full-Year Forecast -

December 3, 2025







Results for 1H FY2025


Earnings Trends

  • Net sales decreased but income increased YoY for the 1H FY2026

  • Profit at each stage reached a second highest level following 1H FY2022

  • Net income for 1H 2025 includes an extraordinary gain from investment securities sale

(Millions of yen)

51,915

50,167

46,622

48,832

45,178

42,157

10,854

9,722

8,910

8,111

7,505

6,9677,185

6,755

6,158

5,69

4

3,698

3,497

4,421

6,020

4,917

4,042

4,866

2,474



60,000

Operating income （right scale）

Ordinary income （right scale）
Net income （right scale）
Net sales （left scale）

(Millions of yen)

14,000

50,000

12,000

40,000

30,000

20,000

10,000

8,000

6,000

4,000

10,000

2,000

0 0

1H FY2020 1H FY2021 1H FY2022 1H FY2023 1H FY2024 1H FY2025

Overview of Consolidated Financial Results

  • Net sales declined due to factors including softening market conditions for one product in the functional chemicals business

  • Operating income exceeded YoY and initial forecasts due to the resolution of production problems in basic chemicals, cost reduction initiatives, and improved market conditions

(Million of yen)

1H FY2024

1H FY2025

Change (YoY)

Change (YoY)

Initial forecast (B)

Achieve ment rate

Change (A)-(B)

to sales

(A)

to sales



Net sales

50,167

ー

48,832

ー

(1,335)

(2.7)%

50,200

97.3%

(1,368)

Operating income

6,967

13.9%

8,111

16.6%

1,144

16.4%

8,000

101.4%

111

Ordinary income

7,185

14.3%

8,910

18.2%

1,725

24.0%

8,500

104.8%

410

Net income

4,866

9.7%

6,755

13.8%

1,889

38.8%

5,700

118.5%

1,055

Earning per share

￥38.36

ー

￥53.74

ー

ー

ー

ー

ー

ー

Overseas sales

19,512

38.9%

18,833

38.6%

(679)

(3.5)%

ー

ー

ー

Assumptions



Average exchange rate

Yen / USD Yen / Euro

1H FY2024

1H FY2025

154 Yen

147 Yen

167 Yen

167 Yen

Naphtha price

Yen / KL

79,000 Yen

64,500 Yen

Segment (Basic Chemicals)

  • Basic chemicals : Cost reduction initiatives made a significant contribution

  • Chlor-Alkali : Resolved production problems contributed to improved unit costs and increased production volume

  • Epichlorohydrin : Improved market conditions and higher sales volume contributed

(Millions of yen)

Net sales
Operating income

Feedstock

Production and sales volume

Sales unit price

+0.1

Costs

+1.2

2.9

1.0

+0.9

Variance (Operating income, YoY)

(Billions of yen)

Fixed costs (0.3)

18,403 20,302 1,047 2,946 1H FY2024 1H FY2025


Net sales (up ¥1.9 billion YoY)

Chlor-Alkali

+0.1

Epichlorohydrin

+1.8

1H FY2024 1H FY2025

Segment (Functional Chemicals)

  • Synthetic rubber : Acrylic rubber sales remain steady, mainly for China and Asia, while epichlorohydrin rubber sales for automotive applications in Europe are sluggish

  • Synthetic resin：DAP monomer for building materials increased demand for replacement from competing products and Non-phthalate allyl resin increased new applications for UV inks

  • Allyl ethers : Strong decline in Chinese market conditions, and decline in European demand for Silane coupling agents

(Millions of yen)

Variance (Operating income, YoY)

Net sales
Operating income 15,963 13,596 1,926 2,560

Sales unit price

Feedstock Costs

Production and sales

(Billions of yen)

Net sales (down ¥2.3 billion YoY)

Synthetic rubber / Synthetic resin

(0.2)

Allyl ethers

(1.0)

etc.

(1.1)

1H FY2024 1H FY2025


2.5

1H FY2024

(1.1)

+0.6

volume

(0.1)

Fixed costs

±0.0

1.9

1H FY2025

Segment (Healthcare)

  • Chromatography : Silica gel business grew on strong demand for diabetes and obesity medications, offsetting higher depreciation at Matsuyama through increased volume
  • APIs and their intermediates : Affected by the decreased sales of intermediates for diabetes medication and others

  • Amagasaki 2nd Phase Expansion for silica gel was completed in September 2025, 1 year ahead of initial schedule

(Millions of yen)

Variance (Operating income, YoY)

Net sales
Operating income 3,424 3,447 6,172 6,709

Sales

Production and sales

(Billions of yen)

unit

price

3.4

±0.0

Feedstock Costs

3.4

±0.0

volume

+0.4

Fixed costs (0.4)

1H FY2024 1H FY2025

(1,000)



Net sales (up ¥0.5 billion YoY)

Chromatography*

+0.8

APIs and their Intermediates

(0.3)

1H FY2024

* Pharmaceutical purification materials(Silica gel), analytical equipment, packed columns

1H FY2025

Segment (Trading and Others)

  • Consumer products : Sales remained steady

  • Specialty Polymer Materials : Sales of printing-related products remained sluggish

  • Others : Sales of inorganic chemicals declined

(Millions of yen)

Variance (Operating income, YoY)

Net sales
Operating income 9,627 8,223 570 462

(Billions of yen)

0.5

0.4

Sales volume, etc. (0.1)



Net sales (down ¥1.4 billion YoY)

Consumer products

+0.4

Specialty Polymer Materials

(0.3)

Building Materials

(0.1)

Basic chemicals products, etc.

(1.4)

1H FY2024 1H FY2025 1H FY2024 1H FY2025

Balance Sheet, Statement of Cash Flows

  • Our 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 A

  • The acquisition of treasury stock (¥1 billion) in August this year increased cash used in financing activities compared YoY

(Million of yen)

1H FY2024

FY2024

1H FY2025

Change from

FY2024

Total assets

153,061

153,935

159,437

5,502

Net assets

112,739

115,596

121,618

6,022

Shareholder's equity ratio

73.7%

75.1%

76.3%

1.2%

Interest-bearing debt

7,656

7,635

7,172

(463)

(Million of yen)

1H FY2024

FY2024

1H FY2025

Change from

1H FY2024

Cash flows from operating activities

10,117

17,049

7,988

(2,129)

Cash flow from investing activities

(4,483)

(8,135)

(2,733)

1,750

Cash flow from financing activities

(1,226)

(4,221)

(2,724)

(1,498)

Cash and cash equivalents

42,963

43,314

45,587

2,624



Forecast for FY2025


Forecast for FY2025

  • Expect continued profit growth driven by improved market conditions in the basic chemicals business and expansion in the healthcare business

  • Further upward revision of the initial full year forecast, which projected record profits

(Million of yen)

FY2024

FY2025 Forecast

Change (YoY)

To sales

（％）

To sales

（％）

Amount

Percentage (％)



Net sales

96,434

ー

102,000

ー

5,566

105.8

Operating income

13,246

13.7

17,300

17.0

4,054

130.6

Ordinary income

14,154

14.7

18,700

18.3

4,546

132.1

Net income

10,332

10.7

13,500

13.2

3,168

130.7

Earning per share

81.54 Yen

ー

108.28 Yen

ー

ー

ー

Overseas sales

36,184

37.5

39,300

38.5

3,116

108.6

FY2025 Forecast

Assumptions

Average

Yen / USD

exchange rate Yen / Euro

64,000 Yen

75,800 Yen

Yen / KL

Naphtha price

160 Yen

163 Yen

145 Yen

152 Yen

FY2024



FY2025 Forecast by Segment

  • Basic chemicals : Strong profit growth expected from better epichlorohydrin market and cost reductions
  • Functional 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 year
  • Healthcare : Effect of increased silica gel production expected from early 2026

(Millions of yen)

FY2024

FY2025 Forecast

Change (YoY)

1H

2H

Full Year

1H

2H

Full Year

1H

2H

Full Year

Net sales



Basic Chemicals

18,403

19,233

37,636

20,302

21,798

42,100

1,899

2,565

4,464

Functional Chemicals

15,963

13,134

29,097

13,596

15,604

29,200

(2,367)

2,470

103

Healthcare

6,172

7,512

13,684

6,709

8,291

15,000

537

779

1,316

Trading and Others

9,627

6,388

16,015

8,223

7,477

15,700

(1,404)

1,089

(315)

Total

50,167

46,267

96,434

48,832

53,168

102,000

(1,335)

6,901

5,566

Operating income

Basic Chemicals

1,047

1,228

2,275

2,946

2,954

5,900

1,899

1,726

3,625

Functional Chemicals

2,560

1,767

4,327

1,926

2,424

4,350

(634)

657

23

Healthcare

3,424

3,607

7,031

3,447

4,353

7,800

23

746

769

Trading and Others

570

334

904

462

288

750

(108)

(46)

(154)

Company-wide, eliminations

(635)

(658)

(1,293)

(671)

(829)

(1,500)

(36)

(171)

(207)

Total

6,967

6,278

13,246

8,111

9,189

17,300

1,144

2,911

4,054

Segment (Basic Chemicals)

Toward achieving full production and full sales with existing capacity：

  • Chlor-Alkali : Continue safe and stable operations and strengthen regionally-based sales

  • Epichlorohydrin : Strengthen overseas sales to drive market share expansion

(Millions of yen)

Net sales
Operating income 37,636 2,275 5,900 42,100 FY2024 FY2025 Forecast

Sales unit price

+0.3

Feedstock Costs

+1.6

Production and sales volume

5.9

+2.1

Variance (Operating income, YoY)

(Billions of yen)

Fixed costs (0.3)

2.2



Net sales (up ¥4.4 billion YoY)

Chlor-alkali

+1.6

Epichlorohydrin

+2.8

FY2024 FY2025 Forecast

Segment (Functional Chemicals)

  • Synthetic rubber : Expect gradual recovery in automobile production volume; utilize acrylic rubber facility capacity to secure new adoptions both domestically and internationally

  • Synthetic resin : Strive to grow market share for UV offset inks through sales expansion in Europe, U.S., and Asian markets

  • Allyl ethers : Maintain and expand market share through flexible sales strategies responding to market fluctuations

(Millions of yen)

Net sales
Operating income 4,327 4,350 29,097 29,200 FY2024 FY2025 Forecast

Net sales (up ¥0.1 billion YoY)

Synthetic rubber / Synthetic resin

+0.8

Allyl ethers

(0.1)

etc.

(0.6)

4.3

Sales unit price

(1.9) Feedstock

costs

+0.8

Production and sales volume

+1.4

Variance (Operating income, YoY)

(Billions of yen)

Fixed cost (0.3)



4.3

FY2024 FY2025 Forecast

Topics: Enhancement of Allyl Ethers

  • 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)

Global Shares (Allyl Ethers)

Trends in Sales Volume and Manufacturing Capacity

（times）

3

Sales volume (Index)

Manufacturing capacity (Index)

※Indexed with sales volume and manufacturing capacity in FY 2010 as 1





Other Companies

35%

Osaka Soda

2

65%

(Our estimates based on FY2024 results)



1

0

2010 2012 2014 2016 2018 2020 2022 2024 2026 2028 2030

Our forecast

(Fiscal Year)

Segment (Healthcare)

  • Chromatography : Demand for diabetes and obesity treatments continues to expand, and promotion of sales for biosimilars

  • Incorporate the revenue contribution from the Matsuyama Plant and the second-phase expansion of the Amagasaki Plant after the beginning of the new year

  • APIs and their intermediates : Installed a GMP-compliant dedicated vessel for biopharmaceuticals in July 2025, focusing on securing new contract manufacturing projects

(Millions of yen)

7,800 7,031 Net sales
Operating income 13,684 15,000

Variance (Operating income, YoY)

(Billions of yen)

FY2024 FY2025 Forecast

Net sales (up ¥1.3 billion YoY)



Chromatography*

+1.3

APIs and their Intermediates

±0.0

7.8

7,0

Sales Production Fixed costs

unit and sales (0.7)

price volume

＋0.1 ＋1.4

FY2024 FY2025 Forecast

* Pharmaceutical purification materials(Silica gel), analytical equipment, packed columns

Segment (Trading and Others)

  • Consumer products : Factor in increased sales of planned products and semi-solid-state batteries

  • Functional products : Expect steady demand for glass fiber and other products, especially in the electronics materials sector

  • Basic chemicals products : Sales of inorganic chemicals are expected to remain sluggish

(Millions of yen)

Variance (Operating income, YoY)

Net sales
Operating income 16,015 15,700

(Billions of yen)

904 750

Sales volume, etc. (0.2)

FY2024 FY2025


Net sales (down ¥0.3 billion YoY)

Consumer products

+0.7

Functional products

+0.3

Specialty Polymer Materials

(0.3)

Basic chemicals products, etc.

(1.0)

Forecast

0.9

0.7

FY2024 FY2025 Forecast

Shareholder Returns

  • Following the upward revision of full-year earnings, the FY2025 dividend was raised by ¥5 to ¥25

  • To 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%

（Yen）

increased

dividend

25

18

18

19

16

13

13

13

46.2

41.6

43.0

40.4

40.7

23.7

19.8



30

Annual dividend per share (left scale)
Dividend increase (left scale)
Payout ratio (right scale)

（％）

100

25 80

20

60

15

40

10

5

20

0 0

FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024 FY2025(Plan)

Share buyback (Billion Yen)

1.6

ー

1.0

ー

2.2

0.8

1.8

6.0*

＊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)



Silica Gel Business Expansion


Toward capturing emerging market demand

  • Since 2022, peptide pharmaceutical companies in emerging markets have grown 4.5 times in 5 years

  • The expansion of the medium-molecule drug market and the rise of the obesity medication market are driving new corporate entries

  • Strengthened sales efforts in India and China, achieving adoption by about 70% of target companies

  • Complete coverage of potential customers to capture robust demand for obesity medications

(times)

Number of Peptide Pharmaceutical Companies (Emerging Markets)

(billion dollars)



2,000

Obesity Medications Market Size

6

※Indexed with 2021 as 1

4

1,500

Europe, United States

欧米

新興国(インド、中 国、その他)

Emerging markets(India, China, others)

CAGR

CAGR

approx.

8％

1,500

2

0

2021 2022 2023 2024 2025

1,000

500

269

approx. 20%

482

1,000

(times)

4

Silica Gel Sales Volume Trends (Emerging Markets)

-

Our sales volume

(Fiscal Year)

0

156

2024 2025 2026 2030 2035

3

※Indexed with 2021 as 1

(Based on Morgan Stanley Research, our estimates)

(Year)

2

1

0

2021

2022

2023

2024

2025

(Fiscal Year)

19



Silica Gel Expansion Plans and Demand Trends

  • Demand expansion prompted the early commencement of operations for the Matsuyama and Amagasaki 2nd Phase expansion

  • Patent expirations for obesity medications accelerate entry of generic China and India

  • Assumes demand will exceed current production capacity by 2028; plans to determine next expansion within this year

7

(Capacity : times)

6

5

Our Production Capacity and Silica Gel Demand Forecast



Decision planned for the next expansion within the year

Manufacturing capacity Capacity expansion Operation response Demand（10% per annum）

Bring forward the start of operations

Amagasaki

2nd phase expansion

4

Matsuyama

new manufacturing facility

3

Amagasaki

1st phase expansion

2

Revising our demand forecast

Assume de

mand will exceed production capacity

1

0

2022 2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

(Fiscal Year)

20



Development of ADME Gels

  • Developed ADME gel with an original modifying group as a new pharma-grade purification solution

  • Combines hydrophobic and hydrophilic properties, delivering unique separation performance beyond conventional modifiers

  • Expected to be applied to nucleic acid drugs, a market anticipated to grow further

  • Started sample work globally for adoption purposes

Features of ADME Gel

Octadecyl group as a general-purpose modifying group

(C18 group in a side-chain structure)

close

Separation target

ADME group

（hydrophobic）

ODS group (hydrophobic)

Separation target

distant

Adamantyl ethyl group (cage-type C12 structure)

X

Si X

X



  • Structure with close proximity to a hydrophilic silica surface despite its hydrophobicity

  • Ability to separate substances that could not be separated using conventional modifying groups, due to affinity with hydrophilic nucleic acid bases

Silica surface (Hydrophilic)

Silica surface (Hydrophilic)

8 10 12 14 16 18 20（ Minute ）

6

4

2

0

Separate Performance Comparison with C18 Grade

Separation of components 4, 5, and 6 is excellent

ADME

1 2 3 4 5 6

C18

1 2 3 4 5 6

21





Contact : Osaka Soda Co., LTD.

Public Relations Group, Corporate Planning Department TEL : 06-7733-1005

This document is not prepared for the purpose of soliciting investment in securities 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.



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