OSAKA SODA REPORT 2019

Something Betterwith Chemicals

Sugoi Osaka Soda

Chlor-Alkali

● Bleach for paper, pulp and textiles● Sterilization of water supply● Neutralization and waste watertreatment agents, etc.

Healthcare

purificationmaterials forpharmaceuticals

Sterilizationand

disinfectionagents

Activepharmaceuticalingredients

(APIs) and theirintermediates

Synthetic resin● UV inks● Electronic components, etc.

Allyl Ethers● Silane coupling agents● High-grade metalcoatings, etc.

Synthetic rubber● Heat-resistant andoil-resistant hoses forautomobiles

● Rubber rolls for OAequipment, etc.

Energy SavingTire Additives

Others

Buildingmaterials

ResourceRecycling

Functional ChemicalProducts

Allyl Chloride（AC）Epichlorohydrin（EP）

● Semi-conductors● laminated boards● Coatings for ships and 　automobiles, etc.● Agricultural chemicals, etc.

Foundation of our innovative product development

Electrodes● Steel plated sheetsfor consumerelectronics, etc.

Basic Chemical Products

Electrolysis Technology

Functionalfood

ingredients

Pharmaceuticals-related

The Daiso electrolytic cell

1953： Built Matsuyama Plant1931： Built Amagasaki Plant1916： Built Kokura Plant1913： Established Japan's first manufacturing methodfor caustic soda using electrolysis

Editorial Policy:This OSAKA SODA Report comprehensively covers the strengths of the Group's business, growth strategy, performance, environmental preservation, quality assurance and other information with the objective of reporting the overall picture of our environmental safety efforts and business activities to all of our stakeholders in a way that is easy to understand. Through this report, we look forward to an even deeper understanding of the Group's business activities, which will pave the way to future initiatives aimed at the realization of a sustainable society.

Reporting Period:Fiscal 2018 (April 1, 2018 – March 31, 2019)Data on industrial accidents is collated on a calendar year basis.

Reporting Entities:OSAKA SODA CO., LTD. and OSAKA SODA Group companiesFinancial data is on a consolidated basis. Environmental data covers all sites of OSAKA SODA CO., LTD., the Mizushima Plant of OKAYAMA CHEMICAL CO., LTD., and the Matsuyama Plant of SANYO FINE CO., LTD.

Table of Contents

● Our History● Our Strengths● Message from the President● Medium-term management plan

CSR initiatives● Corporate governance● Compliance system● Responsible care: RC● Environmental conservation activities● Quality assurance● Occupational safety & health/ Process safety & disaster prevention● Distribution safety● Dialogue with society● Relationships with stakeholders

Data Section● Main financial data (consolidated)● Environmental and safety data● Osaka Soda Group network● Corporate information/ Stock information

P01P03P05P07

P09P10P11P13P16

P17P18P19P20

P21P23P25

P26

2018： Commenced manufacture of non-phthalate allyl resin2017： Commenced manufacture of acrylic rubberOpened Research & Development CenterExpanded into manufacturing analytical equipmentsuch as columns2007： Commenced manufacture of modified silica gel2001： Commenced manufacture of Energy Saving Tire AdditivesExpanding into the Resource Recycling business1999： Commenced manufacture of active pharmaceutical ingredients (APIs) and their intermediates1992： Started production of silica gel (purificationmaterials for pharmaceuticals) for liquidchromatography

The past 100 years and the next 100 years.Something Better with Chemicals for Society and the Future

1980s: Developed electrode business1979： Started production of epichlorohydrin rubber1978： Commenced manufacture of allyl ether1971： Built Mizushima PlantCommenced integrated production of Allyl Chloride(AC) and Epichlorohydrin(EP)1962： Started production of diallyl phthalate (DAP) resin1961： Opening of Research Center

01

Our History

Modified Silica Gel production facilities

Epichlorohydrin (EP) production facilities

1990s -Entered pharmaceuticals business

1960s -Expanding into the organic chemicals field to create new value added through unique chemical technologies

1913 –Contributing to industrial development as a pioneer of electrolysis technology

　　　　　　　　　　　　　　　　　　　　　Group Mission Statement

Chlor-Alkali

● Bleach for paper, pulp and textiles● Sterilization of water supply● Neutralization and waste watertreatment agents, etc.

Healthcare

purificationmaterials forpharmaceuticals

Sterilizationand

disinfectionagents

Activepharmaceuticalingredients

(APIs) and theirintermediates

Synthetic resin● UV inks● Electronic components, etc.

Allyl Ethers● Silane coupling agents● High-grade metalcoatings, etc.

Synthetic rubber● Heat-resistant andoil-resistant hoses forautomobiles

● Rubber rolls for OAequipment, etc.

Energy SavingTire Additives

Others

Buildingmaterials

ResourceRecycling

Functional ChemicalProducts

Allyl Chloride（AC）Epichlorohydrin（EP）

● Semi-conductors● laminated boards● Coatings for ships and 　automobiles, etc.● Agricultural chemicals, etc.

Foundation of our innovative product development

Electrodes● Steel plated sheetsfor consumerelectronics, etc.

Basic Chemical Products

Electrolysis Technology

Functionalfood

ingredients

Pharmaceuticals-related

02

The past 100 years and the next 100 years.Something Better with Chemicals for Society and the Future

　　　　　　　　　　　　　　　　　　　　　Group Mission Statement To realize an affluent society by developing innovative products through our aspirations for high standards

0303

Our Strengths

Our Company has achieved quality and cost optimization through full in-house production from basic chemical products to functional chemicals making use of the electrolysis business. In particular, the highly original products which we manufacture using AC and EP as raw materials have acquired No. 1 shares in the global market. Through our pursuit of a competitive edge in the electrolysis business, our basic chemical products deliver competitiveness both in terms of cost and quality as raw materials for our functional chemical products. Meanwhile, demand for our functional chemical products is expanding due to active development of applications into fields with high growth potential, thus contributing to the expansion of our basic chemical products business. In this way, we have built a business model that seeks growth through synergies between both the basic chemical products and the functional chemical products businesses.

The AC / EP chain is arguably the foundation of our innovative product development. Many of the products we manufacture using AC and EP deliver outstanding performance in physical properties including electrical insulation, semi-conductivity, heat resistance, oil resistance, and reactivity, and are not easily replaced with other materials. Their manufacture also requires specialized technologies and knowledge, making entry into the field difficult for competitors. As a result, our products have cemented No.1 market share positions in Japan and overseas despite being niche products, securing stable demand and maintaining high value added.

Fiscal 2018 Performance by Segment

BasicChemicalProducts48,95545%

FunctionalChemicalProducts

43,00540%

Housing Facilitiesand Others15,912

15%

Fiscal 2018Net sales 107,874（million yen）

BasicChemicalProducts5,12448%Functional

ChemicalProducts5,459

51%

Housing Facilitiesand Others

1691%

Fiscal 2018Operating income

9,488※

（million yen）

Promotion of the Global Niche Topstrategy

Diallyl Phthalates (DAP) ResinEpichlorohydrin RubberAllyl Ethers

Functional chemical productsFocus on structural reform to

enhance profitabilityElectrolysis Business (caustic soda, chlorine, etc.)Allyl Chloride（AC）Epichlorohydrin（EP）

Basic chemical products

AC / EP Chain

Expand scale of business

Strengthen competitiveness

Pursue top global competitivenessPursue top global competitiveness Active expansion into high-growth fieldsActive expansion into high-growth fields

※ Excluding common costs

04

Segments and Main Products of the Osaka Soda Group

Our Main Businesses

The Chlor-Alkali business has been a core business ever since our founding. In addition to being sold as products themselves, they are also the source of our competitiveness as the raw materials from which we manufacture our chemical products.

Allyl ethers are used as raw materials for silane coupling agents that aid in bonding chemical substances in fields where high functionality is required, such as electronic materials and coatings.

AC and EP are the main raw materials for functional chemical products. They not only form the base for our original manufacturing, but also support a broad range of industries as raw materials for epoxy resin, pharmaceuticals, and agricultural chemicals.

In addition to the manufacture of special silica gel used in the analysis and purification of pharmaceuticals, cosmetics, and functional foods, OSAKA SODA operates as a partner for pharmaceutical development and production, using our biotechnology and organic synthetic technology.

These products are expected to make an impact going forward as healthcare-related materials leveraging our specialty technologies.

We concentrate on diallyl phthalates (DAP) resin, which was selected by Japan's Ministry of Economy, Trade and Industry for the Global Niche Top Companies Selection 100. Its unique physical properties meet the diverse needs of industry.

Our Electrode business achieves reductions in power consumption and superior durability based on the technology and know-how that we have built up ever since our establishment. We have won the top share of the Japanese market in the area of oxygen evolving electrodes.

Our special synthetic rubber, which has a superior balance between physical properties such as heat resistance and oil resistance, has been a great success as a material that meets the higher performance of automobiles as well as environmental regulations.

We have developed a business in which we recycle fluorescent lights applying mercury absorption technology cultivated in the electrolysis business. We are contributing to zero emissions and the development of a recycling society.

Chlor-Alkali business

Allyl Ethers business

Allyl Chloride（AC）/ Epichlorohydrin (EP) business

Pharmaceuticals business

Healthcare business

Synthetic resins businessElectrode business

Synthetic rubber businessResource Recycling business

Main products: caustic soda, inorganic chemicals, etc.

Main products: diallyl phthalates (DAP) resin, non-phthalate allyl resin, high-purity epoxy resin, etc.

Main products: epichlorohydrin rubber, acrylic rubber, etc.

Main products: purification materials for pharmaceuticals, active pharmaceutical ingredients (APIs) and their intermediates, etc.

Main products: functional food ingredients and sterilization and disinfection agents

Main products: chlorine evolving electrodes, oxygen evolving electrodes, electrodes for water electrolysis

Basic Chemical Products

Functional Chemical Products

Housing Facilities and Others

Caustic soda, hydrochloric acid, liquefied chlorine, chlorine gas, sodium hypochlorite, sodium chlorite, sodium chlorate, caustic potash, hydrogen gas, epichlorohydrin (EP), allyl chloride (AC), raw materials for coatings and adhesives, etc.

Allyl ethers, epichlorohydrin (EP) rubber, acrylic rubber, diallyl phthalates (DAP), non-phthalate allyl resin, high-purity epoxy resin, modifier for low fuel consumption tires, purification materials for pharmaceuticals, analytical equipment such as columns, lens materials, photosensitive resin, color resist, electrodes, active pharmaceutical ingredients and their intermediates, optically active substances, glass fibers, resource recycling, etc.

DAP processed materials, housing-related products, health food, transportation and storage of chemical products, construction of chemical plants and environmental preservation facilities, etc.

05

Message from the President

We pursue the potential of chemicals to contribute to the achievement ofa world with sustainable growth.

Dramatic Changes in the Global Economy and Management EnvironmentAt present, there are major changes in such areas as society, the economy, and the living environment, and technology, such as IoT and AI, is also evolving dramatically. At the same time, we are confronting a range of problems, such as expansion in the degree of climate change and global-scale depletion of resources and food issues, and are approaching a major turning point. In addition, there are dramatic fluctuations in exchange rates and the prices of crude oil and raw materials due to such factors as political developments in individual countries and geopolitical risk, creating a challenging management environment. We will achieve sustainable growth by treating these social changes as business opportunities and innovating with chemistry to contribute to solving a variety of social issues. Moreover, we firmly believe that solving social issues is precisely what the Sustainable Development Goals (SDGs) are for. Energy and the environment is one of the major themes of the SDGs, and Osaka Soda is currently engaging in research and development with a focus on the field of energy and the environment. We also possess many long-established strong products and technologies ranging from electrolysis to specialty chemicals, pharmaceuticals, and housing-related products. We will deepen and combine these products and technologies to create even more outstanding products, thereby contributing to society.

Founded in 2015, Osaka Soda was the first in Japan to succeed in industrial-scale production of caustic soda using electrolysis. Since that time, the Osaka Soda Group has used its unique technology to contribute greatly to the development of industry by supplying various chemical products, such as basic chemical products that we have manufactured since our founding, as well as global niche functional chemical products and active pharmaceutical ingredients and their intermediates. At present, we are engaged in building a strong business structure centered on high value-added products, along with expanding the functional chemical and pharmaceuticals businesses, and creating new businesses with a focus on the fields of biotechnology and the environment. In order to achieve this, the Osaka Soda Group will continue pursuing the potential of chemistry and undertaking the creation of innovative products that contribute to the development of industry and society as a corporate group with the energy and innovative capabilities for challenging new fields.

President ＆ CEOKenshi Terada

06

We pursue the potential of chemicals to contribute to the achievement ofa world with sustainable growth.

Achieving the Medium-Term Management PlanThe Osaka Soda Group formulated the medium-term management plan BRIGHT-2020 to head toward achieving the management vision. In fiscal 2018, the first year of the plan, ordinary income topped ¥10.0 billion for the first time since Osaka Soda was founded, as net sales and profit expanded steadily. In creating new products and businesses, there was a steady increase in sales of acrylic rubber. Acrylic rubber is used in harsher thermal environments such as around the turbo engines with which an increasing number of environmentally-friendly cars have been equipped in recent years due to rising environmental awareness. Moreover, in downstream business, sales of silica gel columns and equipment, which are used for analysis of pharmaceuticals, cosmetics, and functional foods, were robust in the Asia market. Overseas sales also grew in volume, primarily for specialty chemicals, and the overseas sales ratio reached an all-time high of 25%. In the structural reform of our business, we are reducing costs through improvements in productivity as well as reforming company-wide operations. We are working to raise employee motivation through a review of the personnel system and other measures, as well as promoting changes in mindset and boosting the capabilities of our human resources.

Initiatives to Enhance Corporate ValueAiming for sustainable enhancement of corporate value into the future, we must meet diverse demands from the perspectives of the environment, society, and corporate governance. We will further strengthen the management base by reducing environmental impact, creating systems focused on corporate governance, and taking other measures. In reducing environmental impact, we have, from the past, set targets and are working on them. The Paris Agreement sets out an international framework for reducing greenhouse gases, and the Sustainable Development Goals (SDGs) advocate promoting water resource management and utilization of renewable energy, so we will further strengthen our initiatives in these areas. We also recognize that the strengthening of corporate governance is essential for sound and sustainable growth, and we will develop our governance system. In addition to disclosing timely and appropriate corporate information, we will work on communicating with shareholders and investors to deepen understanding of the Osaka Soda Group. We look forward to your continued support in the future.

November 2019

Group Mission StatementTo realize an affluent society by developing innovative products through our aspirations for high standards

Group VisionBe a company growing by business expansion of specialty chemicals1. Earning power: Strengthen high-value added specialty chemicals2. Growth potential: Engage in businesses that can compete in markets with a high growth potential3. Technology: Develop unique technologies with the frontier spirit4. Strategic investments: Promote strategic investments based on stable financial base5. A corporate culture that embraces challenges: Develop human capital with courage, passion, creativity, and energy

Code of Conduct1. We observe laws, regulations, and social norms and engage in fair and sound corporate activities.2. We carry out research and development and provide high quality, reliable products.3. We strive to preserve the global environment with the aim of realizing a safe and healthy living space.4. We respect the human rights, individuality, and values of others and build a positive working environment. 5. We observe corporate regulations and make appropriate disclosures to stakeholders.

140

120

100

80

60

40

20

14

12

10

8

6

4

2

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

101.2

7.5

107.810.0

105.0 10.2

130.0

11.0

（billions of yen） （billions of yen）

07

Medium-term management plan: BRIGHT-2020 (FY2018–FY2020)

The Osaka Soda Group has set its Group Vision to “Be a company growing by business expansion of specialty chemicals,” and formulated BRIGHT-2020, our medium-term management plan that runs from April 2018, with the fiscal year ending in March 2021 being the final fiscal year. We will report on the status of progress for each of the three basic policies; creating new growth engines, establishing a profitable global business, and completing structural reform of our business.

Overview of the medium-term management plan “BRIGHT-2020”

Launched products

Existing domains

New business domains

New products and technology

Customer evaluations of acrylic rubber steadily progressing and commenced full-scale sales, primarily in emerging countries such as China and India.

In purification materials for pharmaceuticals, developed a new polymer coated silica gel and launched as a new product.

In downstream expansion of silica gel for batching and preparative analysis, column equipment business sales are robust in China and South Korea.

Sent battery-related materials to battery manufacturers as samples, which are under evaluation. Plan to commence sales starting in fiscal 2020.

21.0%

41.0%29.0%

9.0%Launchedproducts

Existingdomains

New businessdomains

New productsand technology

Category Progress

In creating new growth engines, we have set a target of 20% for new products as a percentage of net sales in fiscal 2020. We have established sales targets for each category of new products (pie chart), and are working on development.

Net Sales

Ordinary Income

ROE

101.2

7.5

8.4%

107.8

10.0

10.8%

105.0

10.2

－

130.0

11.0

At least 10%

2018 2019 2020 Forecast 2021 Plan

Medium-term management plan business performance targets

Fiscal 2020 consolidated

business performance targets

Net Sales

Ordinary Income

ROE

￥130 billion

￥11 billion

10% or higher

BasicPolicies

Creating new growth engines

Establishing a profitable global business

Completing business structural reforms

1

2

3

Fiscal 2020 goals

1 Creating new growth engines

08

2

3 Completing structural reform of business

＊ Pharmaceuticals business included in functional chemical products segment.

BRIGHT-2020 Image of Growth

Establishing a profitable global business

Functionalchemicals

Increase productivity through introduction of IoT and AI technology

Pharmaceuticalbusiness

Strengthen core business

Operational reform and organizational restructuring

• Increased market share in Europe, the U.S., and China for existing products, such as allyl ethers.• For diallyl phthalate (DAP) resin, created demand for high-sensitivity UV ink applications in Europe.• New adoption of acrylic rubber expanded in China, South Korea, and India.• Requests for evaluations of non-phthalate allyl resin progressed at European customers, and are implementing initiatives aimed at early adoption.

• Introduce a data accumulation system, install sensors, and collect and accumulate a variety of data and visualize facilities• Work on analyzing data, utilize results in stages to raise productivity

• In purification materials for pharmaceuticals, expanded sales by strengthening technical services in China and India.

• Boost production capacity to strengthen competitiveness, mainly for functional chemicals such as allyl ethers and DAP resin which have robust sales• Look into optimization of production systems for basic chemicals, such as epichlorohydrin, and the electrolysis business

• Identify problem areas in current operations and start work to reform various systems to enhance organizational and human resource capabilities

Category

Category

Progress

Progress

In establishing a profitable global business, we strengthened collaboration with overseas subsidiaries to increase overseas sales, and the ratio of overseas sales for fiscal 2018 was 25%. We are expecting this figure to increase further to 27% in fiscal 2019 and are aiming for 30% in the final year of the medium-term management plan. Going forward, we will review the possibility of expanding into downstream and peripheral business and look into overseas production and sales sites, including M&As.

In completing structural reform of business, we are increasing productivity and reducing costs through the introduction of IoT and AI technology and implementing various initiatives aimed at the ¥1.0 billion target amount. We will strengthen core business by optimizing the production system and boosting production capacity. In operational reform and organizational restructuring, we will review current operations and implement various system reforms to raise employee motivation and engage in efficient operations to enhance organizational and human resource capabilities.

● Expand business for launched productsAcrylic rubberNon-phthalate allyl resin

● Expand downstream　 (specialty rubber, resin compounds)● Obtain new business domains　 (new ultraviolet curable components and　 compounds)

● Increase global market share● Develop new products and 　new grades in existing　 peripheral domains（Ultra-high temperature resistantrubber, aryl acrylate, compounds,etc.）

● Increase capacity of 　existing businesses Caustic soda Epichlorohydrin(EP)

● Increase productivity　 leveraging technical 　innovation（Introduce IoT and AItechnology, etc.）

● Expand business　 domains through 　new product　 developmentBattery componentsElectric vehiclecomponents

● Develop new productsAffinity GelPolymer coated silica gel

● Highly potent active 　pharmaceutical ingredients

● Strengthen column business● Expand into generic　 pharmaceutical products● Expand special reaction 　equipment

Expand business domains（Functional chemical products, Pharmaceuticals）

+ Reinforce earnings base（Basic chemical products and their derivatives）

Strategic investment and reform of organizations

Existing business baseFunctional chemical products business

Basic chemicalproducts business

Pharmaceuticalsbusiness＊

09

CSR InitiativesCorporate Governance

Corporate GovernanceBasic ApproachBased on our Group Mission Statement, “To realize an affluent society by developing innovative products through our aspirations for high standards,” the Osaka Soda Group has a basic policy which aims to ensure the transparency and fairness of management and further enhance the corporate governance system, thereby realizing sustainable growth and medium-to-long term enhancement of corporate value.

Board of DirectorsThe Board of Directors is composed of six directors, two of whom are outside directors. As a rule, it meets once a month to deliberate on important matters as well as discuss the progress of business performance and actions to be taken in accordance with the rules of procedure for the Board of Directors. In addition, we have made the term of office for directors one year and introduced an executive officer system that allocates the management decision-making and the executive oversight functions to the Board of Directors and the implementation of operations to the executive officers. Our aim is efficient corporate management and clarification of responsibility.

Management CommitteeComposed mainly of directors, the Management Committee is an advisory body for the Representative Director. The Committee deliberates important issues in the performance of the duties of the directors, forming a structure under which decision making by the Representative Director is understood and implemented accurately.

Board of AuditorsThere are three auditors, two of whom are outside auditors. The auditors attend meetings of the Board of Directors in addition to actively participating in important internal company meetings, enabling them to supervise the execution of duties by the directors adequately.

Outside Directors and Outside AuditorsThe Company has appointed two outside directors and two outside auditors with the aim that they will perform the role of advising and supervising the Company's management from an external perspective with an independent standpoint. One of the two outside directors has a wealth of experience as a manager and extensive insight into the business world and was appointed to reflect this experience and insight in the Company's management. The other outside director is an expert in taxation, and was appointed to reflect this deep insight and wealth of experience in the Company's management. Both of the outside directors have been designated as independent officers. One of the two outside auditors has many years of experience in financial institutions with a wealth of knowledge concerning finance and other areas and has been appointed as an outside auditor in order to reflect this experience and knowledge in the auditing and supervision of the Company. As an attorney-at-law, the other outside auditor is well versed in corporate law with a considerable degree of legal knowledge concerning finance and accounting and has been appointed as an outside auditor and designated as an independent officer to reflect this knowledge in the auditing and supervision of the Company.

Internal Audit SystemThe Internal Auditing Department (two members) is responsible for internal audits and implements audits that cover all operations.

Accounting AuditorsThe Company has an auditing agreement with Ernst & Young ShinNihon LLC. Ernst & Young ShinNihon spends ample time on audits and the Company has an internal system that facilitates audits. The Certified Public Accountants (CPAs) who executed the auditing operations are Tomohide Otani and Takao Oshitani assisted by seven CPAs and 11 others.

Nomination of Directors and Auditors and Determination of RemunerationThe Board of Directors, including the independent, outside directors, nominate candidates for directors and auditors who are elected by the General Meeting of Shareholders. The amounts of remuneration for directors are determined in accordance with internal rules by the Representative Director, who is entrusted to do so by the Board of Directors, within the limit decided at the General Meeting of Shareholders and reported to the Board of Directors. The amounts of remuneration for auditors are determined through consultation between the auditors within the limit decided by the General Meeting of Shareholders. The specific amounts of retirement benefits are decided by the Board of Directors in accordance with internal rules following the resolution of the General Meeting of Shareholders.

Evaluation of the Effectiveness of the Board of DirectorsOsaka Soda implemented self-evaluation questionnaires for all the directors and auditors on the effectiveness of the Board of Directors. Based on the collated results of the questionnaires, all the members of the Board of Directors analyzed and evaluated the effectiveness of the Board. As a result, they confirmed that the Company's Board of Directors is operated appropriately and efficiently, securing its overall effectiveness. The Board of Directors will make ongoing efforts with regard to discussion of medium-to-long term growth strategy and vision and understanding and discussion of the main risks impacting business. Additionally, the Board of Directors will also review its operating methods, including optimizing the content and volume of materials, and providing opportunities for preliminary briefings for the outside directors.

System Chart （as of June 28, 2019）

General Shareholders’Meeting

Board of Directors

AccountingAuditors

Representative Director,President

Divisions/Headquarters

AffiliatedCompanies

Board ofAuditors

Internal AuditingDepartment

ManagementCommittee

10

Compliance System

The CSR management system at the Company is composed of three committees. Each committee is under the direct supervision of the President and promotes CSR activities through the holding of regular committee meetings.

CSR System Chart

Objectives of Each Committee（１）Compliance Committee

Recognizing the importance of compliance (observance of laws and regulations) in business activities, the Compliance Committee formulates and implements the measures necessary for the observation of laws and regulations and conduct based on corporate ethics in line with our corporate philosophy. Three expert committees (Information Management Committee, Fair Transactions Management Committee, and Trade Committee) have been established as subordinate organizations of the Compliance Committee.

① Information Management CommitteeThe Information Management Committee establishes policy on the handling and management of information that is held and obtained and optimizes information management.

② Fair Transactions Management CommitteeThe Fair Transaction Management Committee is involved in the observation of anti-trust law, the Unfair Competition Prevention Act, and other relevant laws and regulations.

③ Trade CommitteeThe Trade Committee conducts the appropriate management of export control of national security -related goods to maintain international peace and security.

（２）RC Committee

The RC Committee studies, deliberates on, and promotes measures related to responsible care, ensures environmental preservation, process safety & disaster prevention, occupational safety & health, and chemical safety over the entire product life cycle of chemical substances, from development to manufacture, distribution, use, final consumption, and disposal, and also implements measures for safety, health, and the environment, and works on improvements.

（３）Quality Assurance Committee

The Quality Assurance Committee promotes company-wide deliberations and measures on corporate roles and responsibilities vis-a-vis customers based on a comprehensive quality management system. Based on our Group Mission Statement, “To realize an affluent society by developing innovative products through our aspirations for high standards,” Osaka Soda considers promoting CSR activities to be putting the mission statement into practice and engages in extensive dialogue with diverse stakeholders, including customers and suppliers, employees, shareholders and investors, and local communities and governments as well as activities to enhance corporate value. Osaka Soda has established a Code of Conduct based on the Group Mission Statement which must be practiced and will fulfill its responsibility to society.

Compliance System

Representative Director, President

ComplianceCommittee RC Committee Quality Assurance

Committee

InformationManagementCommittee

Fair TransactionsManagementCommittee

Trade Committee

Trade Committee

July 2018Experience-based safety tour (Amagasaki Plant)

March 2019In-house training on the revised Civil Code

What is Responsible Care?Responsible Care (RC) is a voluntary management initiative taken by companies engaged in the manufacture or handling of chemical substances for implementing improvements and procedures in support of health, safety and environmental protection. Through thisinitiative, management policies are adopted to protect the environment and uphold safety over the entire product life cycle of chemical substances from development to manufacture, distribution, use, final consumption, and disposal. This approach is based on the principles of self-direction and acceptance of responsibility.

Basic Approach of Responsible Care● OSAKA SODA will make efforts for continuous improvement of environmental, health, and safety

performance across the entire product lifecycle from product development through to disposal as well as facility, process, and technology-related security, and will publish the results of such efforts.

● Management will show strong leadership and strive to ensure the environment, health, and safety in Japan and overseas.

● In addition to complying with the laws and regulations of individual countries and with international rules, OSAKA SODA will strive to raise the level of its voluntary initiatives.

● Through Responsible Care, OSAKA SODA will contribute to improving quality of life and realizing a sustainable society to enhance public trust.

Responsible Care Policies１．Environmental Preservation

（１）We will promote environmental conservation and give consideration to harmony with protection of the global environment. （２）We will make efforts to reduce our impact on the surrounding environment including the atmosphere and water resources.（３）We will promote energy and resource conservation, and make efforts to reduce waste and promote their effective use.

２．Process Safety & Disaster Prevention（１）We will make efforts to prevent major accidents and disasters with the mindset that “everything begins with safety.”（２）We will strictly follow our crisis management procedures during emergency situations.（３）We will be thorough in our management of high pressure gases,

hazardous materials, poisons and highly toxic substances.（４）We will promote security management of facilities and

equipment.

３．Occupational Safety & Health（１）We will reduce potential hazards and strive to eliminate

workplace accidents.（２）We will make efforts to establish a pleasant workplace

environment.（３）We will make efforts to maintain and improve health.

４．Distribution Safety（１）We will strictly comply with legal and other requirements to

ensure safety in the transport of products.（２）We will promote comprehensive safety in all our logistics

operations and reduce risks in the transport and distributionof our products.

５．Chemical & Product Safety and Quality Assurance（１）We will strive to eliminate quality problems, and provide

products that will satisfy our customers.（２）We will undertake appropriate chemical management and

comply with the respective regulations in each country.（３）We will take measures so our business partners will be able

to safely handle chemicals.

６．Dialogue with the Public（１）We will bear in mind the concerns of regulatory authorities

and people in the communities where we operate, disclosenecessary information, and make efforts to engage in dialogue.

（２）We will continue dialogue and interaction with members of the local communities and activities that contribute to society.

We will communicate our Basic Policy on implementing our ResponsibleCare related activities to all employees within the company and to thegeneral public.

11

Responsible Care（RC）

Responsible Care

【Organizational Structure of Responsible Care】

President

RC CommitteeChairman: Director Responsiblefor RCMembers: Divisional managers, general manager of labor unionOffice: RC & Quality AssuranceDepartment

Plant RC Committee(Occupational Safety & Health and ProcessSafety & Disaster Prevention Committee)Chairman: General Manager of workplace

● RC Internal Audit● ISO Internal Audit● Serious Accident Prevention Follow-up

RC PromotionConference

Reports

Reports &Proposes

Instructs

Instructs &Promotes

Reports

Checks

We are continuously improving our RC activities includingOccupational Safety & Health and Process Safety & DisasterPrevention by adopting the PDCA cycle.

RC CommitteePlant RCCommitteeRC targets andmeasures for thefiscal year andadoption of theRC action planAdoption of theRC action planat workplaces

Plants

Activities basedon the RCaction plan andcampaigns toprevent seriousaccidents

RC Internal AuditISO Internal Audit

Audit and reporton RC actionstatus

RC CommitteeRC PromotionConferenceReview of planand incorporationof changes inthe plan for thesubsequent fiscalyear according tothe RC actionreport and legalrequirements

Plants

PLAN DO CHECK ACTION

12

Targets for Fiscal 2018 Results for Fiscal 2018

Environmental Preservation

Process Safety & Disaster Prevention

Occupational Safety & Health

DistributionSafety

Chemical & Product Safetyand Quality Assurance

Dialogue with Society

To ensure proper operation of environmental impact reduction equipment, reduce environmental impact and improve the recycling rateTo improve energy consumption rate by 1% a year and reduce CO2 emissions. Also to reduce external landfill rate for industrial waste to 7% or lower.To make efforts to reduce CO2 emissions in line with chemical industry's

“Commitment to a Low-Carbon Society”To prevent serious accidents and disasters based on safety as the starting point for all activitiesTo promote ongoing measures to prevent serious accidents and strengthen response in emergencies

To eliminate work accidents (to introduce non-technical education and trainingwith the aim of no accidents with lost worktime)

To maintain safe transport and eliminate in-plant truck loading accidents

To ensure stringent compliance with laws targeting chemical products

To publish an RC activity report and submit it to the government and to promote communication with society

Production volume was practically flat.Percentage of high value-added products increased, while energy intensity improved, due in part to completed start-up of main new facilities.

The achievement rate for implementing measures to prevent serious accidents was approximately 100%.

There were no accidents with lost worktime in fiscal 2017,so the target was achieved.

Thanks to measures to eliminate accidents, there were 5 distribution accidents this fiscal year as opposed to 11 in the previous fiscal year, so the measures had a noticeable effect.Appropriate procedures in accordance with REACH in Europe and regulation in other areas and countries about chemical products were carried out.

Submitted reports to the government and to the Japan Chemical Industry Association.

To reduce environmental impacts during the development of products and processes while promoting conservation of energy and resourcesTo seek harmony with the local community while preserving and improving the living environmentTo prevent accidents and disasters. To maintain a crisis management system. To implement stringent management of high pressure gases and hazardous materials and the like. To implement process safety controls for equipment.To eliminate work accidents. To enhance and improve the work environment. To maintain and promote good health.

To ensure the safety of product transport by strictly complying with legal and other requirementsTo reduce safety risks during the product transport and distribution stages

To provide products that satisfy customers according to our corporate philosophyTo prioritize chemical and product safety based on appropriate Responsible Care, quality, and environmental management systemsTo always put quality first and work to reduce costs

To respond appropriately to requests for investigations and to provide reports on our business operations

Targets and Results of Responsible Care Activities

Prevention of Global Warming

Environmental Preservation

Waste

Process Safety & Disaster Prevention

Occupational Safety & Health

Distribution Safety

Chemical & Product Safety and Quality Assurance

Dialogue with Society

Occupational Health

Process Safety &Disaster Prevention

Quality

Chemical Safety

Distribution Safety

PRTR

Occupational Safety

Reduce greenhouse gas emissions

Improve raw material intensity

Maintain positive working environment and establish appropriate work methods

Prevent accidents and disasters

Reduce quality issuesIncrease customer satisfaction

Ensure product safety

Reduce distribution accidentsand issues

Reduce emissions of substances subject to PRTR Law by 5% from fiscal 2015 (new)

Accidents with lost worktime: 0Rate of accidents with no lost worktime: reduce by 1/2

Improve energy consumption intensity

Increase effective use of waste

Prevent incidence of occupational diseases

Strengthen response in emergencies

Prevent production issues

Conserve energy by reviewing production processes, optimization, and facility modifications

Identify and implement cost reduction projects

Enforce hazard prediction and pointing and calling/maintain risk assessmentReview past accident cases/promote consolidation of countermeasures

Ensure implementation of safety assessments / ensure safety of non-routine work / ensure introduction of protective equipment (study) / prepare and revise procedures / ensure hazard prediction training / analyze case studies of accidents / educate to improve non-technical skills and educate operators (experience-based crisis facility) / enhance equipment management skills / assess risk

Review and ensure adherence to the change management system (4M change management) / improve and strengthen the raw material acceptance system / operate based on ISO 9001 (strengthen internal audits) / standardize methods of evaluation by customers and improve their evaluations

Strengthen management of legal and regulatory requirements, including voluntary recalls / ensure stringent management of PCBs

Ensure implementation of tank truck hose management standards / maintain and manage buyer questionnairesReview work orders in line with distribution accident prevention regulations and ensure complianceImprove delivery and shipping equipment as well as on-site working environmentTake measures to prevent recurrence of past distribution accident examples and confirm effectsStrengthen safety guidance for suppliers and freight carriers / have training for chemical leak scenarios

(2H: identify issues)

Ensure compliance on wearing of protective equipment / review rules, etc. / prevent commuting accidents by raising awareness of safety and healthEnhance safety education, strengthen accident prevention by boosting safety activities, promote 5S

Promote and implement an energy conservation investment plan

Reduce emissions and waste, and promote collection of valuables (1H: quantify, 2H: additional measures)

Initiatives to promote mental health/initiatives to prevent influenza outbreaksImprove workplace environment through use of stress checks/strengthen health management system

Improve response capability through introduction of an emergency reporting system / review emergency response procedures through training / update BCPs / enhance ability to respond swiftly through education and training

Promote prevention of quality issues through process capability and quality control / effectively use preventive measures and corrective action

MeasuresTargets for Fiscal 2019

Long-term Targets

Plant Date of Certification Certifier Registration Number

Material Balance of Production Activities

13

The chemical industry adopted the goal of achieving an average energy consumption rate of 80% compared to the fiscal 1990 level for the period from fiscal 2008 to 2012; moreover, it has also voluntarily adopted environmental preservation activities on a global scale. And from fiscal 2013, the new plan “Commitment to a Low-Carbon Society” (from fiscal 2013 to 2020) started. OSAKA SODA is taking steps to reduce its environmental impacts through initiatives to conserve energy, reduce wastes, and prevent global warming while strictly complying with legal and other requirements; moreover, we respond to emergencies in our business operations as one of our RC activities. Our three mainline plants and affiliated companies have received ISO 14001 certification, the international standard for environmental management systems, and are continuously adopting improvements.

Amagasaki Plant

Matsuyama Plant (includes Matsuyama Plant of SANYO FINE CO., LTD.)

Mizushima Plant (includes Mizushima Plant of OKAYAMA CHEMICAL CO., LTD.)

DAISO ENGINEERING CO., LTD. (includes JMR CO., LTD.)

May 2001

June 2001

October 2000

May 2005

Japan Quality Assurance Organization

Japan Quality Assurance Organization

Japan Quality Assurance Organization

Japan Quality Assurance Organization

JQA － EM1558

JQA － EM1631

JQA － EM1051

JQA － EM4787

Our production volume increased by 5% in fiscal 2018, compared to fiscal 2017, and also water consumption increased by 5%. Atmospheric emissions were the same as in the previous fiscal year with the appropriate operation of a boiler powered by alternative forms of energy such as hydrogen and city gas. The material balance resulting from our production activities during fiscal 2018 is shown below.

INPUT OUTPUTWater

20,000 thousand t

Energy consumption（crude oil equivalent）

230 thousand kl

Raw materials564 thousand t

Kokura

CO253.5 thousand t

SOX3.2 tNOX49.6 tAsh dust5.2 t

Substances subject to PRTR Law134.4 t

COD309 tNitrogen99 t

Phosphorus6.9 t

Wastewater32,000 thousand t

Amagasaki

Matsuyama

Mizushima OKAYAMA CHEMICAL CO., LTD.

Osaka Soda plants (four worksites)

Atmospheric emissions

Emissions into water resources

Emissions into soil

Industrial waste

Products

Substances subject to PRTR Law1.8 t

Substances subject to PRTR Law0 t

Released43.2 thousand t

Final disposal volume4.2 thousand t

ISO 14001 Certification

Environmental conservation activities

City gas boiler atthe Amagasaki Plant

14

Energy Conservation Initiatives

Initiatives to Prevent Atmospheric and Water PollutionOur four main plants (Kokura, Amagasaki, Matsuyama, and Mizushima), the Mizushima Plant of OKAYAMA CHEMICAL CO., LTD., and the Matsuyama Plant of SANYO FINE CO., LTD. engage in production activities in the Seto Inland Sea and nearby waters, making wastewater management a key theme for preserving the beautiful environment of the Seto Inland Sea. We have also concluded agreements on pollution prevention and environmental preservation with the local area, and we not only strive to comply with environment-related laws but also to prevent and reduce atmospheric and water pollution. The environmental impact of our wastewater is primarily attributable to the emissions from processes for organic products, etc. (organic products, plastics, pharmaceutical intermediates, etc.), and we take steps to reduce this impact.

We continued our initiatives to reduce energy consumption by updating facilities, improving systems, and conserving power. In fiscal 2018, production volume increased in conjunction with an increase in the ratio of high value-added products. Energy intensity improved due in part to the completed start-up of the main new facilities.

The hydrogen generated by soda electrolysis is a clean energy that does not emit CO2, and we are striving to reduce CO2 emissions by recovering the thermal energy currently generated by two hydrogen boilers as one of our replacement energy strategies using hydrogen. In addition, we installed low CO2 emission city gas boilers at the Amagasaki Plant in fiscal 2006. Since fiscal 2007, a total of three boilers have reduced heavy oil consumption by a crude oil equivalent of approximately 4,000kL/year and CO2 emissions by approximately 15,000t/year.

Hydrogen boiler atthe Amagasaki Plant

Hydrogen boiler atthe Matsuyama Plant

Facility for recovery of valuable materials through thermal decomposition of wastewater(Matsuyama Plant)

Initiatives to Reduce Energy Consumption

Use of Clean Energy

Detailed data P21

Initiatives to Reduce Industrial Waste Detailed data P22

15

Developing Environmentally-Friendly Products

The Basic Act on Establishing a Sound Material-Cycle Society was established in 2000, and a range of recycling laws were enacted. We are reducing waste through a system to recover hydrochloric acid and steam with hydrochloric acid production equipment that uses the organochlorine compounds that are the by-products of manufacturing processes and incinerators for liquid waste for the reutilization of resources and energy. In addition, we also turn the organic sludge generated by wastewater processing into fertilizer as well as separating, collecting, and recycling garbage.

CABRUSTM *1, a modifier for low fuel consumption tires which we manufacture and sell, is a polysulfide silane coupling agent used as an additive for energy saving tires. CABRUSTM aids the coupling of rubber and silica, which do not normally have an affinity for each other. The rotational resistance*2 of the tire is reduced and thereby fuel consumption is improved.Tires that include silica using CABRUSTM consume less fuel and can reduce CO2 emissions and have become popular in Europe, contributing to the preservation of the global environment.*1: CABRUSTM consists of Coupling Agent for Bonding RUbber and Silica.*2: Rotational resistance: heat generation of tires by vibration and friction against the ground while running

We are leveraging our proprietary technologies, including mercury extraction, to develop and supply a range of recycling systems. Furthermore, we are also promoting the creation of products with an awareness of recycling from the product development stage.

● Equipment for extracting mercury from exhaust gas and wastewater● Glass recovery and recycling technology for used fluorescent light tubes● Technology for volume reduction and recycling of waste plastics● Technology for reusing and recycling waste liquid from etching

JMR CO., LTD., a member of the OSAKA SODA Group, is aiming to contribute to a material-cycle society through its processing business for used fluorescent light tubes and mercury lamps based on our mercury processing technology. After cutting, crushing, and washing used fluorescent light tubes, JMR recovers and recycles the glass, fluorescent agent, metals, and mercury. It has contracts with approximately 3,000 companies in the Kinki and Chubu regions and processes about 4 million tubes/year (40W straight-tube fluorescent light tubesequivalents).

OSAKA SODA and DAISO ENGINEERING CO., LTD. developed the LegioClean, a chlorine dioxide generating device, and Jia De Clean, a sodium hypochlorite generating device, which can sterilize water for tap water as well as for pools and hot spas on site. A special feature is that these devices can kill legionella and other bacteria that are the biggest problem in closed loop baths, and we have proposed them as sterilizing devices for hot spa facilities and pools, water cooling towers and health care and food-related facilities.

Utilizing our basic technology, DAISO CHEMICAL CO., LTD. and Obayashi Corporation co-developed New DaiRock, a processing agent that prevents the dispersal of sprayed asbestos dust. New DaiRock is an aqueous inorganic processing agent containing silicate as its main ingredient and features outstanding permeability into asbestos without containing VOCs such as organic solvents.

CABRUSTM: Tire Modifier for Energy Saving Tires that Contribute to Reducing Automobile CO2 Emissions

Applying Our Technology to Resource Recycling

Environmental Preservation Facilities and Fluorescent Light Tube Recycling Business Utilizing DAISO MRTM Mercury Absorber

Making Water Safe and Clean Completely Removing Asbestos

Environmental conservation activities

▲ Glass ▲ Fluorescent agent ▲ Metals/aluminum ▲ Mercury

A tire that includes silica using CABRUSTM

Amagasaki Plant of JMR CO., LTD.

Chlorine dioxide generating device

Spraying New DaiRock

● Hybrid air purifierOsaka Soda has been selling ElecBang, a hybrid air purifier with CROXIDETM through Amazon since November 2018. The product is a desktop hybrid air purifier with dual functions for generating negative ions and chlorine dioxide, removing bacteria and viruses in the room and cleaning the air.

● Facemask deodorant sprayOsaka Soda has been selling facemask deodorant spray since October 2018 based on the concept of comfort for disposable facemasks. The product contains MIS anti-bacterial agent and is effective against 57 types of bacteria as well as the H1N1 influenza virus.

Releasing New Environmentally Friendly Products

16

Quality assurance

Quality Assurance Initiatives

Product Safety and Chemical Substance Management Initiatives

As part of our RC activities, we take initiatives on safety and quality assurance for the chemicals and products in our business activities as well as to respond promptly to customer requirements and to prevent quality problems. Accordingly, our three main plants have ISO 9001 certification, the international standard for quality management systems. As a part of ISO activities, each workplace conducts a management review to check customer satisfaction levels which are evaluated through the marketing department every six months in our efforts to enhance customer satisfaction through continuous improvements as we strive to provide products that satisfy our customers.

We have created safety data sheets (SDSs) for our products and published many of them on our website.

We operate a database in order to promptly respond to and correct quality problems such as complaints. By sharing the information in the database, we conduct company-wide horizontal deployment of corrective action to prevent the occurrence of similar quality problems.

OSAKA SODA always makes efforts for substance management of our products and collection of information. We prepare Information Sheets on the Content of Certain Chemical Substances using OSAKA SODA's own format to supplement our SDSs, as well as chemSHERPA ※5

from the Joint Article Management Promotion-consortium (JAMP) in order to respond to requests from customers regarding detailed information on the content of chemical substances, including RoHS※3

and SVHC※4 in addition to Japan's Chemical Substance Control Law※2.We respond promptly to regular list revisions and provide the information to customers. ※ 1 JAMP is an acronym for Joint Article Management Promotion-consortium※ 2 Chemical Substance Control Law is a shortened title for the Act on the Evaluation 　　 of Chemical Substances and Regulation of Their Manufacture, etc.※ 3 RoHS is an acronym for Directive on the Restriction of the use of certain Hazardous Substances in electrical and electronic equipment.※ 4 SVHC is an acronym for Substances of Very High Concern with carcinogenic and mutagenic effects, reproductive and developmental toxicity and other serious impacts on human health and the environment.※ 5 chemSHERPA is a sheet for basic information transfer to facilitate sharing of information on chemical substances in products that lists the name of laws and regulations, etc., under which product constituents are declarable substances and whether a product contains a declarable substance or not.

In preparation for a major earthquake which it is forecast will occur in the near future, OSAKA SODA has formulated a Business Continuity Plan (BCP) for each manufacturing site assuming damage to production facilities at each workplace and based on forecasts for the restoration of utilities including various raw material s, water, and electricity as well as logistics. Moreover, we have also prepared emergency response guidelines at each workplace and made all employees aware of the chain of command in an emergency and the procedures for confirming safety. Furthermore, we have prepared a BCP to prepare for a large-scale influenza epidemic, taking into consideration such matters as securing production personnel by preventing inter-employee infection and a scheme for mutual assistance between workplaces.

Safety Data Sheets (SDSs) chemSHERPA

Amagasaki Plant Matsuyama Plant Mizushima Plant

ISO 9001 Certification

Preventing Quality Problems

Safety Data Sheets (SDSs) JAMP※1 chemSHERPA

Business Continuity Plan

Plant Date of Certification Certifier Registration Number

Amagasaki Plant

Matsuyama Plant

Mizushima Plant

March 1996

October 1995

June 1994

Japan Quality Assurance Organization

Japan Quality Assurance Organization

Japan Quality Assurance Organization

JQA－ 1181

JQA－ 0998

JQA－ 0539

We regard occupational safety & health and process safety & disaster prevention as an important part of our RC activities.

RC Promotion Conference(Matsuyama Plant)

NTS education (Matsuyama Plant)

RC Committee

RC Promotion Conference (includes Safety and Health Conference)

Plant RC Committee (includes Safety & Health and Process Safety & Disaster Prevention Committee)

Workplace Meeting

Held twice a year

Held twice a year

Held monthly

Held monthly

Promotion of Activities for Occupational Safety & Health and Process Safety & Disaster Prevention

17

Activities for Occupational Safety & Health and Process Safety & Disaster Prevention

Each plant and the Research Center foster hazard prediction (KY) trainers through external courses, which are reflected in workplace KY activities.

Non-technical skills (NTSs) are skills that supplement technical skills and contribute to the safe and efficient execution of work and consist of situational awareness, communication, leadership, courage to speak out, verbalizing, reflection, and overcoming the authority gradient. We provide NTS education at 4 plants to prevent errors related to human factors and ensure safety.

Each worksite sets a target for acquisition of qualifications and provides encouragement. As a result, the number of employees who possess a major qualification increased by 41 from the previous fiscal year.

Osaka Soda calls for slogans on safety and health from all employees at the end of the year, and works on RC activities in the following year using the carefully selected winning slogan as the focus for ZA activities. In fiscal 2018, we set out the slogan “Support each other by being aware and calling out in a friendly workplace for zero accidents” as ZA2018 and implemented efforts that included health considerations. In fiscal 2019, we have set out the slogan “Pay attention! Increase sensitivity and predict hazards for first-time work, change of work, and non-routine work” as ZA2019 and are implementing initiatives to strengthen safety checks.

ZA (Zero Accident) activities

Fostering Hazard Prediction (KY) Trainers

Providing Non-Technical Skill Education

Initiatives for Acquisition of Qualifications

Occupational Safety & Health and Process Safety & Disaster Prevention

Name of qualification Category No. of employees who possess a qualificationHealth OfficerFood Hygiene Officer

Pollution Control Officer

Qualified Person for Energy Management

High Pressure Gas Manufacturing Process Safety Manager

Boiler Engineer

Hazardous Materials EngineerPoisonous and Deleterious Substances ManagerIndustrial Waste Processing Facility ManagerSpecially Controlled Industrial Waste ManagerHigh Pressure Gas Sales Safety Chief

Chief Electricity Engineer

Electrician

Class 1－

Water Class 1Atmosphere Class 1

－Class A and Class B ChemicalClass A and Class B Machinery

Special levelLevel 1Level 2Class A

－－

－Class 2Class 3Class 1Class 2

7716

143987285

1994

139290296548

59226

257

40

Possession of Major Qualifications (as of March 2019)

Possession of major qualificationsTotal number of qualified employees

(total) 1,640(up 41 from previous fiscal year)

Each worksite took part in local disaster prevention drills as well as holding comprehensive disaster prevention drills and reporting and communication drills on site.

Headquarters Kokura Plant Amagasaki Plant Matsuyama Plant Mizushima Plant Fukui Plant, SANYO FINE CO., LTD.

Disaster Prevention Drills

1

0

No. of accidents with lost worktime

2014

JCIA frequency rate of accidents with lost worktimeFrequency rate of accidents with lost worktime

2016 20172015 （year）

（accidents）

2018＊ Frequency rate = (No. of victims of accidents with lost worktime ÷ total working hours) x 1,000,000　 Frequency rate of accident victims per 1,000,000 working hours

No. of Accidents with Lost Worktime (Calendar Year Total)2014 2015 2016 2017 2018

No. of accidents with lost worktime (accidents)Frequency rate of accidents with lost worktimeJCIA frequency rate of accidents with lost worktime

1

0.81

0.33

0

0.00

0.29

1

0.80

0.35

0

0.00

0.34

0

0.00

0.31

（year）

Safety meeting with freight company (Matsuyama Plant)

18

We periodically convene the RC Committee (includes the Safety & Health and Process Safety & Disaster Prevention Committee) and continuously implement serious accident prevention and KY activities in striving to prevent disasters. As a result, there were no accidents with lost worktime in fiscal 2018.

We provide education on mental health care through external instructors and videos at all of our worksites, the Mizushima Plant of OKAYAMA CHEMICAL CO., LTD., and the Matsuyama Plant of SANYO FINE CO., LTD. in our efforts to maintain and improve mental health.

Mental Health Care

Preventing Accidents with Lost Worktime

● Confirmation of safety of employees and their families● In May 2018, we introduced an employee safety confirmation system that simultaneously transmits emails, etc. to the contact addresses of 　 employees in the event of disaster, such as a major earthquake, or an emergency. 　 When there is an earthquake that measures an upper 5 or higher in seismic intensity in the area of an employee's worksite, 　 safety confirmation is automatically transmitted to employees.

Activities for Process Safety & Disaster Prevention Risk Management

Occupational Safety & Health / Process Safety & Disaster Prevention / Distribution Safety

Yellow Cards and GHS Labels

Holding Transportation Subcommittee and Emergency Response Drills

Initiatives for Distribution Safety

● Each plant held a Transportation Subcommittee periodically and strived to ensure safe transportation by freight companies and drivers.● The relevant people at plants and freight companies held joint emergency response drills and reporting and communication drills.

● We have prepared “yellow cards” for products that correspond to toxic substances, deleterious 　 substances, and hazardous materials have provided education, reporting, and communication drills for 　drivers aimed at ensuring safety during transportation and an appropriate response in an emergency. ● In order to ensure safety during the mixed transport and storage of products in drums and oil drums, 　 we affixed “GHS labels” (container yellow cards) that show emergency measures, the guideline number 　and the UN number to product containers

Under our freight company commendation program, we recognize outstanding drivers who have made significant contributions to reducing logistics accidents. In fiscal 2018, we recognized 8 drivers. We also recognized DS LOGISTICS CO., LTD. by name in a special commendation.

Emergency drill with freight company (Kokura Plant)

Freight company (Kokura Plant) Training for new drivers (Matsuyama Plant)

Yellow card GHS label

Distribution Safety Commendations

Kokura area: 1 drivers, Amagasaki area: 4 drivers, Mizushima area: 3 drivers / DS LOGISTICS CO., LTD.

Internships

Community Interaction

19

Dialogue with Society

● We submit our Responsible Care Implementation Report to the Responsible Care Committee of the Japan Chemical Industry Association 　 (JCIA) every year. ● We also receive and report on requests for inspections from government agencies and organizations.● Our business sites report periodically to prefectures and municipalities in accordance with laws and regulations and environmental conservation agreements.● Relationships with local communities are becoming increasingly important for corporations. We take part in local responsible care briefing sessions.● As part of our environmental conservation activities, we actively participate in a range of local activities, such as cleanup activities, to deepen community interaction.

As part of our social contribution activities, all of our worksites are involved in local cleanup activities, interaction with the community, and hosting interns among other activities.

Based on 5S (Seiri (Sort), Seiton (Systematize), Seiso (Sweep), Seiketsu (Standardize), Shitsuke (Self-Discipline) activities, we not only conduct onsite cleanups but also carry out periodic cleanup activities around each worksite.

In fiscal 2018, we conducted 1 plant tour at the Kokura Plant, 38 at the Amagasaki Plant, 12 at the Matusyama Plant, 13 at the Mizushima Plant, 4 at the Mizushima Plant of OKAYAMA CHEMICAL CO., LTD., and 16 at the Matsuyama Plant of SANYO FINE CO., LTD. These tours provided an outline of our production activities and introduced our production facilities to local high school and university students.

In fiscal 2018, we provided students with technical guidance and practical work experience in response to requests from educational institutions.

Kokura Plant: 3 students for 5 days in AugustAmagasaki Plant: 3 students for 5 days in AugustMatsuyama Plant: 4 students for 5 days in October

Headquarters Amagasaki Plant Matsuyama Plant Mizushima Plant

Plant tourCommunity activity (festival)

Internships (Matsuyama Plant)

Dialogue with the Public

Social Contribution Activities

Local Cleanup

Dialogue with Society

July 2018 Internships (Matsuyama Plant)

20

Relationships with Stakeholders

May 2018Exhibited at expo organized by Japan Chemical DailyChemical Material Japan 2018

October 2018Exhibited at JASIS2018, one of the largest expositions in Asia for analytical and scientific instruments

November 2018Held seminars for customers in South Korea to promote sales of analytical column equipment

Product pamphletsWebsite home page

February 2019Exhibited at the Int'l Rechargeable Battery Expo BATTERY JAPAN

Research and development on new rubber materials

Customers and suppliers

Employees

Shareholders and investors

Local community and governments

① Disseminating information through 　 news releases② Disseminating information through 　our website③ Publishing the OSAKA SODA REPORT 　 and product pamphlets④ Exhibiting at expos

OSAKA SODA PRESS (PR magazinefor employees)

July 2018Donated ¥15 million for the disaster caused by heavy rain, mainly in western Japan

June 2018163rd Annual General Shareholders’ Meeting

November 2018Won the Amagasaki Mayoral Rubber Baseball Tournament

June 2018Financial results briefing for institutional investors

February 2019Participated in running event organized by Midori-kai Association

November 2018Participated in the RC Okayama District community meeting held by the Japan Chemical Industry Association (JCIA)

February 2019Participated in the RC Hyogo District community meeting held by JCIA

① Publishing OSAKA SODA PRESS, 　the in-house magazine② Disseminating information through 　 the intranet③ Conducting employee awareness　 surveys④ Consultation between labor and 　 management⑤ Participating in events

① Held annual general shareholders' meetingThe Company treats the General Meeting of Shareholders as an important opportunity for dialogue with shareholders.

② Held financial results briefings for institutional 　investors③ Published reports for shareholders

① Provided disaster support② Held plant tours③ Community dialogue

Relationships with Stakeholders

【 Energy intensity】

21

Environment

250

200

150

100

50

0

202

2014 （FY）

211

2015

228

2016

229

2017

230

2018

（thousand kL）

70.0

60.0

50.0

40.0

30.0

20.0

10.0

0

52.0

2014

53.6

2015

59.1

2016

55.8

2017

53.5

2018

（ten thousand t）

（FY）

2.00

1.50

1.00

0.50

02014 2015

1.35 1.39

2016

1.57

2017

1.65

2018

1.66

（thousand t）

（FY）

0.800

0.600

0.400

02014 2015

0.623 0.620

2016

0.631

2017

0.597

2018

0.602

（FY）

（t）

2.000

1.500

1.000

02014 2015

1.605 1.577

2016

1.635

2017

1.454

2018

1.398

（FY）

（t）

20.00

15.00

10.00

5.00

02014 2015

16.54 16.91

2016

16.12

2017

17.92

2018

17.00

（thousand t）

（FY）

【 Energy consumption (Crude Oil Equivalent) 】

【 CO2 emissions associated with energy consumption 】

【 CO2 emissions from offices and research departments 】

【 CO2 emissions intensity 】

【 CO2 emissions associated with transportation 】

Energy conservation initiatives

800

600

400

200

0

140

120

100

80

0

Inorganic productsOrganic products, etc.

2014 2015

Rate of increase in organic products, etc. (from fiscal 2010)

563

152

103

579

158

107

2016

608

168

114

2017

635

184

124

2018

636

185

125

（thousand t） (％)

（FY）

1,000

800

600

400

200

02014

715

2015

737

2016

777

2017

819

2018

821

（thousand t）

（FY）

【Inorganic product production volume/organic product, etc. production volume/rate of increase in organic products, etc.】

【 Production Volume 】Rate of increase in production volume and organic products, etc.

Environmental and Safety Data

22

8.00

6.00

4.00

2.00

02014 2015 2016 2017 2018（FY）

（t）

0.711.76

2.253.05 3.20

80.00

60.00

40.00

20.00

02014 2015 2016 2017 2018（FY）

（t）

32.93 37.7832.12

49.27 49.60

8.00

6.00

4.00

2.00

02014 2015 2016 2017 2018（FY）

（t）

2.761.56

0.801.58

5.24

【 SOx 】 【 NOx 】 【 Ash dust 】

400.00

300.00

200.00

100.00

02014 2015 2016 2017 2018（FY）

（t）

220.46 216.44 237.13

310.60 309.32

200.00

150.00

100.00

50.00

02014 2015 2016 2017 2018（FY）

（t）

63.67 69.03 76.9294.88 99.48

20.00

15.00

10.00

5.00

02014 2015 2016 2017 2018（FY）

（t）

6.37 6.77 7.89 7.12 6.92

【 COD load 】 【 Total nitrogen emissions 】 【 Total phosphorous emissions 】

Substance name with CAS No. in square brackets Atmosphericemissions

Emissions intowater resources

Emissions intosoil Total emissions Transferred Total emissions

and transfers

N-Hexane [110-54-3] Toluene [108-88-3]3-Chloropropylene (Allyl chloride) [107-05-1]Trichloroethylene [79001-6]Epichlorohydrin [106-89-8]1,2-Dichloropropane [78-87-5]1,3-Dichloropropene (also known as D-D) [542-75-6]Diallyl phthalate [131-11-3]Dimethylamine [124-40-3]Allyl alcohol [107-18-6]1-Allyloxy-2,3-epoxypropane [106-92-3]Ethylene oxide [75-21-8]1,2,3-Trichloropropane [96-18-4]1,2-Epoxypropane [75-56-9]Chlorodifluoromethane (HCFC-22) [75-45-6]Ferric chloride [7705-08-0]Organotin compoundsTributyl phosphate [126-73-8]Methyl chloride [75-09-2]Ethyl acrylaten-butyl acrylatePyridineMethanolBenzotrichloride [98-07-7]TotalDioxins [*] (Note)

124.16 0.55 3.13 0.81 1.73 0.08 0.00 0.00 0.08 0.49 0.41 0.13 0.00 0.03 2.66 0.00 0.00 0.00 0.02 0.00 0.00 0.00 0.07 0.07

134.41 1.02

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.79 0.23 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.47 0.28 0.00 0.00 0.00 1.77

15.35

0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

124.16 0.55 3.13 0.81 1.73 0.08 0.00 0.79 0.31 0.49 0.41 0.13 0.00 0.03 2.66 0.00 0.00 0.00 0.02 0.47 0.28 0.00 0.07 0.07

136.18 16.37

19.10 61.55 0.00

16.47 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

14.75 0.00 0.00 1.65 0.00 0.00

113.52 0.00

143.26 62.09 3.13

17.29 1.73 0.08 0.00 0.79 0.31 0.49 0.41 0.13 0.00 0.03 2.66 0.00 0.00 0.00

14.76 0.47 0.28 1.65 0.07 0.07

249.70 16.37

Unit: t/yearFiscal 2018 transfers of substances subject to PRTR Law

Atmospheric pollutant emissions

Water pollutant emissions

(Note) Unit for dioxins: mg-TEQ/year

60,000

50,000

40,000

30,000

20,000

10,000

0

100

75

50

25

0

Industrial waste emissions

23,867

2014

Recycling rate

89 91

25,268

2015

91

27,963

2016

87

30,825

2017

90

43,244

2018

(t) (％)

（FY）

4,000

3,000

2,000

1,000

0

1,859

2014

1,679

2015

1,847

2016

3,109

2017

3,571

2018

(t)

（FY）

【 Industrial waste emissions / recycling rate 】※　 【 Landfilled 】※

Initiatives to reduce industrial waste ※ Total for four plants

（FY）

23

Business PerformanceNet sales (millions of yen)

Operating income (millions of yen)

Ordinary income (millions of yen)

Profit (millions of yen)

Per share Data

Net income per share (EPS) (Yen)

Book-value per share (BPS) (Yen)

Dividend per share (Annual) (Yen)

Assets / Liabilities

Total assets (millions of yen)

Net assets (millions of yen)

Capital ratio (%)

Interest-bearing liabilities (millions of yen)

Interest-bearing liability ratio (Debt/equity ratio) (times)

Financial Indicators

Return on Equity (ROE) (%)

Return on Assets (ROA) (%)

Price-Earnings Ratio (PE ratio) (times)

Capex (millions of yen)

Depreciation expenses (millions of yen)

R&D expenditures (millions of yen)

Cash Flow

Cash flows from operating activities (millions of yen)

Cash flows from investing activities (millions of yen)

Cash flows from financing activities (millions of yen)

Cash and cash equivalents at end of period (millions of yen)

Share Data (fiscal year-end)

Closing price (Yen)

No. of issued shares (shares)

Market capitalization (millions of yen)

2009

72,404

2,188

2,185

947

42.96

1,508.76

30.0

66,680

32,786

49.1

13,950

0.4

2.9

3.4

27.6

2,040

3,386

1,570

7,012

（1,510）

（3,363）

6,522

237

111,771,671

26,489

2010

80,757

4,470

4,618

2,425

112.35

1,590.57

35.0

65,214

33,601

51.4

10,743

0.3

7.3

7.0

12.7

1,279

3,008

1,549

5,370

（1,312）

（4,726）

5,764

285

111,771,671

31,854

2011

82,489

4,082

4,246

1,940

92.07

1,649.69

35.0

67,677

34,843

51.4

10,148

0.3

5.7

6.4

14.4

3,532

2,770

1,550

3,950

（2,340）

（1,385）

5,881

266

111,771,671

29,731

2012

83,149

4,538

5,025

2,888

137.03

1,813.71

35.0

76,804

38,246

49.7

14,015

0.4

7.9

7.0

10.4

7,030

2,363

1,367

4,711

（5,182）

430

5,934

285

111,771,671

31,854

Main Financial Data (Consolidated)

＊ The Company implemented a share consolidation at the ratio of five to one with an effective date of October 1, 2017. 　 Per share data reflects the impact of the share consolidation.

Data Section

107,874

9,488

10,053

6,793＊

297.10

2,795.62

65.0

112,661

64,548

57.3

19,231

0.3

10.8

8.8

9.1

2,434

3,590

2,289

9,854

（4,542）

（5,003）

24,376

2,714

26,090,580

70,809

2018

24

2013

91,621

4,751

5,241

3,029

143.82

1,975.61

35.0

84,326

41,615

49.3

19,990

0.5

7.6

6.5

12.7

5,832

2,510

1,411

5,177

（8,336）

5,233

8,197

365

111,771,671

40,796

2014

101,365

5,172

5,747

3,450

163.74

2,263.88

40.0

100,893

47,704

47.3

26,760

0.6

7.7

6.2

12.8

2,015

2,811

1,469

7,460

（1,853）

5,954

20,095

420

111,771,671

46,944

2015

102,125

6,443

6,439

3,606＊

171.16

2,292.13

50.0

97,027

48,296

49.8

24,280

0.5

7.5

6.5

12.0

2,861

2,892

1,485

5,031

（2,535）

（3,433）

19,036

411

111,771,671

45,938

2016

93,509

6,586

6,536

4,320＊

205.05

2,502.48

55.0

101,503

52,725

51.9

21,839

0.4

8.6

6.6

12.1

4,302

2,923

1,685

8,490

（3,145）

（3,506）

20,532

497

111,773,837

55,551

2017

101,231

7,318

7,485

4,778＊

223.24

2,698.66

57.5

115,020

60,953

53.0

23,504

0.4

8.4

6.9

12.6

5,963

3,185

1,896

7,757

（7,398）

3,097

23,993

2,810

25,052,432

70,397

* Forecast for net income attributable to shareholders of the parent company

25

Osaka Soda Group Network（as of March 31, 2019）

Research Center

Matsuyama Plant

Tokyo Branch

DAISO CHEMICAL CO., LTD.

Kokura Plant

Mizushima Plant

Kyushu Regional Office

DAISO ENGINEERING CO., LTD.

Chugoku-Shikoku Regional Office

SANYO FINE CO., LTD.

Amagasaki Plant9, Otakasu-cho, Amagasaki, Hyogo 660-0842, Japan

77, Kitayoshida-cho, Matsuyama, Ehime 791-8525, Japan

Palaceside Bldg. 8F, 1-1,Hitotsubashi 1-chome, Chiyoda-ku, Tokyo 100-0003, Japan

Sales of Chemical ProductsHeadquarters: Nishi-ku, OsakaTokyo branch: Tokyo (Chiyoda-ku, Tokyo)Offices: Kyushu (Kita-Kyushu, Fukuoka) Matsuyama (Matsuyama, Ehime) Mishima (Shikoku-Chuo, Ehime)

8-1, Takamidai, Kokurakita-ku, Kita-Kyushu, Fukuoka803-0838, Japan

2767-13, Kojima-Shionasu, aza-Niihama, Kurashiki, Okayama 711-0934, Japan

1-2-5 Hakata-ekimae, Hakata-ku, Fukuoka 812-0011, Japan

Manufacture and Sale of Electrodes, Design and Processing of Chemical EquipmentHeadquarters: Nishi-ku, OsakaOffices: Tokyo (Chiyoda-ku, Tokyo) Matsuyama (Matsuyama, Ehime)Plant: Amagasaki (Amagasaki, Hyogo)

2767-29, Kojima-Shionasu, Kurashiki, Okayama711-0934, Japan

Manufacture and Sale of APIs and IntermediatesHeadquarters: Nishi-ku, OsakaOffices: Tokyo branch (Chiyoda-ku, Tokyo)Plants: Kakogawa site (Kakogawa, Hyogo) Fukui plant (Sakai, Fukui) Matsuyama Plant (Matsuyama, Ehime)Research & Development base: Matsuyama development team (Matsuyama, Ehime) Kakogawa development team (Kakogawa, Hyogo) Amagasaki development team (Amagasaki, Hyogo)

11, Otakasu-cho, Amagasaki, Hyogo 660-0842, Japan

Main Offices

Group Companies in Japan

Overseas Group Companies

● Kokura Plant

● Kyushu Regional Office

● Matsuyama Plant● SANYO FINE CO., LTD.

Matsuyama Plant

● Mizushima Plant● Chugoku-Shikoku Regional Office● OKAYAMA CHEMICAL CO., LTD. Mizushima Plant

● SANYO FINE CO., LTD. Fukui Plant

● SANYO FINE CO., LTD. Kakogawa site

● Amagasaki Plant● DAISO ENGINEERING CO., LTD.　 Amagasaki Plant ● JMR CO., LTD.● Research Center

● Headquarters

●● NITTO KAKO CO., LTD.● Tokyo Branch

●● INB Planning Co.,Ltd．

●● SANYO FINE IRICA TECHNOLOGY CO., LTD.

Japan

Overseas

● DAISO Fine Chem USA, Inc.

● DAISO CHEMICAL(THAILAND) CO., LTD.

● TAIWAN DAISO CHEMICAL CO., LTD.● DAISO CHEMICAL(Shanghai) CO., LTD.

● SANYO FINE TRADING CO., LTD.

● DAISO Fine Chem GmbH

● Domestic base /Research Center● Production base

JMR CO., LTD.

SANYO FINE IRICA TECHNOLOGY CO., LTD.

SANYO FINE TRADING CO., LTD.

DAISO CHEMICAL(Shanghai) CO., LTD.

INB Planning Co.,Ltd．

DS LOGISTICS CO., LTD.

DS WELLFOODS CO., LTD.

DAISO Fine Chem USA, Inc.

TAIWAN DAISO CHEMICAL CO., LTD.

OKAYAMA CHEMICAL CO., LTD.

NITTO KAKO CO., LTD.

DAISO Fine Chem GmbH

DAISO CHEMICAL(THAILAND) CO., LTD.

Resource RecyclingHeadquarters/Plant: Amagasaki City in Hyogo

Manufacture of Column, Devices and other Analysis EquipmentHeadquarters: Minami-ku, Kyoto

Sale of Columns, Devices, and other Analysis EquipmentHeadquarters: Chaoyang District, Beijing, ChinaOffices: Shanghai/Guangzhou, China

Importation and Exportation of Functional Chemicals, Electronic Materials, etc.Headquarters : Changning District, Shanghai, China

Manufacture and Sale of Rubber CompoundsHeadquarters/Plant: Obu, AichiOffice: Zhejiang province, China

Shipping and Handling for Chemical ProductsHeadquarters : Amagasaki City in HyogoPlants: Kokura, Amagasaki, Matsuyama, Mizushima

Manufacture, Processing and Sale of Health Food MaterialsHeadquarters: Nishi-ku, Osaka

Manufacture and Sale of Pharmaceutical Purification MaterialsHeadquarters : CA, USA

Importation and Exportation of Functional Chemicals, Electronic Materials, etc.Headquarters : Taipei, Taiwan

Manufacture of Chemical ProductsHeadquarters : Nishi-ku, OsakaPlant: Mizushima (Kurashiki, Okyayama)

Manufacture and Sale of Industrial Rubbers and Resin ProductsHeadquarters/Plant/Sales department: Kouza-gun, KanagawaSales bases: Tokyo (Chiyoda-ku, Tokyo) West Japan Sales office (Osaka)

Sale of Pharmaceutical Purification Materials and Functional ChemicalsHeadquarters : Dusseldorf, Germany

Importation and Exportation of Functional Chemicals, Electronic Materials, etc.Headquarters : Bangkok, Thailand

Name of Shareholder

Japan Trustee Services Bank, Ltd．（Trust Account）MUFG Bank, Ltd.THE BANK OF FUKUOKA, LTD.The Master Trust Bank of Japan, Ltd. (Trust Account)Sompo Japan Nipponkoa Insurance Inc.THE IYO BANK, Ltd.TEIJIN LIMITEDMizuho Bank, Ltd. (MHBK)Nippon Life Insurance CompanyStock Holding Union of OSAKA SODA's Business Partners

1,531876822775768748678669637597

6.633.793.563.353.323.242.932.902.762.58

26

Corporate Information（As of March 31, 2019）

Stock Information

Shareholding (1,000 shares)

Shareholding Ratio (%)

Distribution by number of shareholders

Financial instrumentsbusiness operators 0.68%

Other corporations3.44%

Foreign corporations, etc.2.59%

Individuals and others92.63%

Financial Institutions0.66%

Distribution by number of shares

Financial Institutions37.16%

Othercorporations27.34%

Foreign corporations,etc.

11.33%

Individualsand others23.41%

Financial instrumentsbusiness operators0.76%

Note: The Company's shareholding ratio (11.50%) of treasury stock is included in “Individuals and others.”

Share price (yen) Trading volume (thousand shares)

3,000

2,000

1,000

0

4,000

3,000

2,000

1,000

（Month）2017

321 654 87 9 1110 12 21 3

20192018

321 654 87 9 1110 12

（Year）

Note:1. Shareholding ratio is calculated by deducting treasury stock （3,001,554 shares) from total number of shares issued.

Company NameHeadquarterEstablishmentCapitalNumber of Employees Listed onIndependent AuditorAnnual General

OSAKA SODA CO., LTD.1-12-18, Awaza, Nishi-ku, Osaka 550-0011, JapanOctober 26, 1915¥15,150 million970（Consolidated） First Section of Tokyo Stock Exchange (Securities code: 4046)Ernst & Young ShinNihon LLCJune

Stock Information（as of March 31, 2019）

Total number of shares authorized to be issued: 60,000,000 sharesTotal number of shares issued: 26,090,580 sharesNumber of shareholders: 4,829

List of MajorShareholders(top ten)

Shareholder Registry Administrator

Information of shareholders distribution

Mitsubishi UFJ Trust and Banking Corporation4-5, Marunouchi 1-Chome, Chiyoda-ku, Tokyo 100-8212, Japan

Share price and trading volume trends

Note: The Company implemented a share consolidation at the ratio of five to one with an effective date of October 1, 2017. In conjunction with this, changes in the share price　　　and trading volume are shown assuming that the share consolidation was implemented on January 1, 2017.

February 2020

OSAKA SODA CO., LTD.Administration Division

12-18, Awaza 1-chome, Nishi-ku, Osaka 550-0011, JapanTelephone: +81-6-6110-1560　Facsimile : +81-6-6110-1603

http://www.osaka-soda.co.jp