Medium-Term Management Plan
Grow UP 2026

Uniqueness & Presence — Becoming an excellent company with uniqueness and presence

May 10, 2024

TSE Prime
M a r k e t

4182

Contents

Review of Grow UP 2023

03

New Medium-Term Management Plan Grow UP 2026

11ーBasic concept and numerical targets

12ー

Objective 1 Strengthen the resiliency of our business portfolio

17

ーObjective 2 Promote sustainability management

41

ーInvestment and financing plan, capital policy, and shareholder
return policy

48

ーAction to Implement Management that is Conscious of Cost of
Capital and Stock Price52

ーReference materials

57©MITSUBISHI GAS CHEMICAL COMPANY, INC.

2

Review of Grow UP 2023
FY2021-FY2023©MITSUBISHI GAS CHEMICAL COMPANY, INC.

3

Review of Previous Medium-Term Management Plan (Grow UP 2023) (1)Operating Performance
ー Although the net sales target was achieved, operating profit, ordinary profit, ROIC, and ROE were all below target
ー Decrease in profit margins and increase in investment contributed to lower ROIC
→ We recognize our priority is to improve profit margins and capital efficiency
FY2020resultFY2023
result▍ Operating profit, ROIC, and ROE for the past two medium-term
management plan periods

FY2023targetMGC Advance 2020
Net sales

Operatingprofit¥595.7¥813.4¥730.0billionbillionbillion

¥44.5

¥47.3

¥70.0

billionbillionbillionGrow UP 2023

55.3

(billions of yen)

49.0

47.3

44.5
41.3

Operatingprofit margin

7.5%

5.8%

ー

11.3%

34.2

10.4%
8.8%

Ordinary
profit

¥50.2

¥46.0

¥80.0

billionbillionbillion

7.7%

10.9%

8.8%
4.9%

8.3%

6.1%

7.1%
5.4%

ＲＯＩＣ*

7.7%

5.4%

10% or higher

ROE

7.1%

6.1%

9% or higher

4.3%

FY2018FY2019FY2020Operating profit*ROIC = Ordinary profit / Invested capital©MITSUBISHI GAS CHEMICAL COMPANY, INC.

FY2021ROIC

FY2022

FY2023

ROE

4

Review of Previous Medium-Term Management Plan (Grow UP 2023) (2)Operating Performance by Business Sector
ー Basic Chemicals* and Specialty Chemicals both missed operating profit and ordinary profit targets,mainly due to lower sales volumes and higher fuel and raw material costs▍ Difference analysis (ordinary profit)*Currently, Green Energy & Chemicals (GEC)FY2023
resultFY2023targetNet sales
Basic Chemicals (GEC)¥412.8¥410.0billionbillionBasic (GEC):

Missed the target despite achieving targets in “energy resources andenvironment”, mainly due to generally lower sales volume and higher
fuel and raw material costs in other products

Specialty:

Missed the target due to optical materials demand falling below
expectations, lower sales volumes for EL chemicals*, and sluggish
performance in PC products, despite achieving targets for polyacetal(POM) and electronic materials*Electronic chemicals

Specialty Chemicals¥409.2¥330.0billionbillionEquity method affiliates, etc.: Equity in earnings of affiliates missed the target
mainly due to impairment losses recorded at methanol associates

80.0

Operating profit
Basic Chemicals (GEC)

¥17.7

¥25.0

billionbillionSpecialty Chemicals

¥33.0

¥49.0

billionbillionBasic Chemicals (GEC)

¥10.1

¥31.0

billionbillionSpecialty Chemicals

¥38.6

¥53.0

billionbillion

-7.3
-16.0

46.0
-10.7

Ordinary profit* This slide does not include businesses outside these segments and adjustments

FY2023targetBasic Chemicals(GEC)
operating profit

Specialty
Chemicals
operating profit©MITSUBISHI GAS CHEMICAL COMPANY, INC.

Equity method
affiliates, etc.

FY2023
result5

Review of Previous Medium-Term Management Plan (Grow UP 2023) (3)Operating profit of Differentiating Businesses
ー Operating profit of differentiating businesses* has been growing steadily over the long term;
however, growth faltered during Grow UP 2023

(billions of yen)

FY2009–FY2014

FY2015–FY2020

FY2021–FY2023

MGC Will

MGC Advance

Grow UP 2023

100
Operating profit(

Differentiating businesses

Other businesses (including head office expenses, etc. that cannot be
attributed to Basic or Specialty business sectors))

80

Growth faltered during
Grow UP 2023

60

40

20

0

-20

FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022*Electronic materials, Electronic chemicals (EL chemicals), Optical materials, Polyacetal (POM), Meta-xylenediamine (MXDA)/Aromatic aldehydes, Polymer materials, Methanol, Energy resources and environment(Methanol and Energy resources and environment shifted to differentiating businesses in FY2023)©MITSUBISHI GAS CHEMICAL COMPANY, INC.

FY20236

Review of Previous Medium-Term Management Plan (Grow UP 2023) (4)Trends by Business
Status of KPI
achievement•“Methanol” and “Energy resources and environment” shifted to differentiating businesses, and the “percentage of net sales
from differentiating businesses of over 40%” was achieved (FY2023 result 47.6%)•“Xylene separators and derivatives” continued to be unprofitable. “Percentage of net sales from unprofitable businesses or
those needing rebuilding of less than 3%” was not achieved (FY2023 result 4.3%)

Electronic materials
Electronic chemicals(EL chemicals)
Differentiating
businesses

Optical materials

Polyacetal (POM)

Foundation
businesses

Unprofitablebusinesses or
those needingrebuilding

BT materials recovered after hitting bottom in FY2022 Q4 and returned to a growth trend. OPE also grew, meeting thetarget
Maintained top share*1 of the global market despite the impact of semiconductor market slowdown. Currently strengthening
production structure in Japan and overseas
Sales volume target missed, but maintained competitive advantage based on high performance and customer response
capability, etc. Grew into a core business earning stable revenue
Achieved the target due to increase in market prices, etc. Established GPAC*2, creating a structure for integratingproduction, sales, and development operations

MXDA*3/Aromatic
aldehydes

The final fiscal year saw demand slump due to a delayed economic recovery in Europe and the U.S. Promoted the MXDA

Energy resourcesand environment

Examined commercialization of CCS and renewable energy. Achieved target, mainly due to increase in market prices foriodine and high energy prices, shifted to differentiating businesses

MethanolPromoted the circular carbon methanol concept. Operating profit generation capability increased, mainly due to supply
chain streamlining, and shifted to differentiating businesses

PC-related

Profits are improving at production sites in China, but adverse market environment with excess supply continued. Effect of
MEP*4 conversion to a consolidated subsidiary still not fully manifested. Sheet film business in a downturn. Positioned as abusiness requiring intensive management under the new medium-term management plan with a view to rebuilding

Formalin andpolyol-related

Structural reforms such as concentration of production sites proved successful, shifted to foundation businesses

Xylene separatorsand derivatives

Europe project and increased production capacity for aromatic aldehydes in preparation for demand recovery

Decided to withdraw from the ortho-xylene chain. PIA*5 continued to be unprofitable due to an adverse market environment.
Positioned as a business requiring intensive management under the new medium-term management plan

*1 As super-pure hydrogen peroxide*3 Meta-xylenediamine*2 Global Polyacetal Co., Ltd.

*4 Mitsubishi Engineering-Plastics Corporation*5 Purified isophthalic acid

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

7

Review of Previous Medium-Term Management Plan (Grow UP 2023) (5)Objective 1 — Shift to a Profit Structure Resilient to Environmental Changes
Measures taken and results

Issues to be addressed in the new medium-term management plan

環境変化に強い収益構造への転換～事業ポートフォリオ改革～
Focused investment on differentiating businesses with a view
Strategy 1-1

Further strengthen
competitively
advantageous
businesses

Decreased profitability and capital efficiency due to generalsales volume decrease following semiconductor market slump
and China slowdown, cost increases, balance sheet expansion,etc.
New business creation delayed despite aggressive investmentof R&D resources

Strategy 1-2

Accelerate creationand development of
new businesses

Strategy 1-3

Reevaluate andrebuild unprofitablebusinessesContinue to promote investment and financing in differentiating
businesses and steadily reap the benefits of large-scale
investments conducted during the previous medium-term
management planRespond to increased costs and pressure on management
resources by strengthening ability to pass on costs to prices



Rigorous ROIC management

Strengthen “selection and concentration”. Zero in on themes andto market expansion (EL chemicals plant expansion in Japanand overseas, BT materials plant expansion in Thailand, MXDA
plant newly built in Europe, etc.)- Solid electrolytes: Adoption stage was not reached during the previous
medium-term management plan despite research system expansion andtechnology seed development

focus R&D resources*1 Materials informatics: Initiatives to enhance development efficiency of various
materials using informatics, such as machine learning*2 Utilizing intellectual property information analysis to make strategic
recommendations that contribute to intellectual property management- OXYCAPT™: Promoted development of the multilayer plastic vial market forbiopharmaceuticals and regenerative medicine. Advanced steadily, despite
considerable time spent on customer evaluation

Stopped production of unprofitable products and withdrew
from businesses (concentration of formalin production sites,
withdrawal from ortho-xylene/phthalic-acid/plasticizer chain,etc.)
PC-related and PIA, etc. have low capital efficiency andprofitability, requiring intensive management

Utilize MI*1 and IP landscape*2, accelerate R&D

Position PC-related products and “xylene separators/derivatives”
as “businesses set for intensive management” since they have low
capital efficiency and profitability. Promote cost reduction andbalance sheet streamlining, etc.

We are currently mid-way through “shift to a profit structure resilient to environmental changes”.
Under the new plan, we will “strengthen the resiliency of our business portfolio”.
©MITSUBISHI GAS CHEMICAL COMPANY, INC.

8

Review of Previous Medium-Term Management Plan (Grow UP 2023) (6)Identified Priorities — Improving Profit Margins and Capital Efficiency
ー Our priority is to strengthen earning power, which decreased during the previous medium-term
management plan (increase in profitability × improvement in efficiency)▍ Priorities for increasing profitability shown on an ROE tree(*Figures are actual results for FY2023, the final year of the previous
medium-term management plan (Grow UP 2023)

ROE

Strengthen the resiliencyof our business portfolio

6.1%

Increasing ROIC requires further expansion
and strengthening of differentiating
businesses and improvement ofRoom for utilizing
financial leverage,
Financial leverageeven while maintaining
financial discipline

1.62 times

Reduction of
inventories
Improvement of
CCC,*2 etc.

unprofitable businesses by strengthening×

ROIC*1the resiliency of our business portfolio

5.4%

Invested capitalturnover rate

Operating profit
margin0.96

5.8%

Strengthening of ability
to pass on costs to prices
Reduction of costs, etc.

*2 Cash Conversion Cycle＊1 ROIC = Ordinary profit / invested capital©MITSUBISHI GAS CHEMICAL COMPANY, INC.

9

Review of Previous Medium-Term Management Plan (Grow UP 2023) (7)Objective 2 — Balance Social and Economic Value
Measures taken and results
Issues to be addressed in the new medium-term management plan
環境変化に強い収益構造への転換～事業ポートフォリオ改革～

Strategy 2-1

Solve social issues
through business

Strategy 2-2

Harmonize value creation
with environmental
protection

Progressed as planned on circular carbon methanol
development and CO2-derived PC development, etc.

Continue to focus on circular carbon methanol development
and CO2-derived PC development

Achieved net sales targets for applications that
contribute to development of ICT/mobility society orsolving medical and food problems

Visualization of contributions to the environment and society
as net sales of MGC Group eco-friendly products“Sharebeing”

Increase the reduction target for GHG emissions andcontribute to solving climate change issues

Promote further strengthening of a safety foundation

Enhance human capital management

Achieved GHG emissions reduction target andrenewable energy introduction rate target
Achieved zero waste emission rate target towards
reducing waste

Promoted united MGC Group safety activities
Strategy 2-3Strengthen discipline andfoundation supporting
business activities

Promoted development of human resources, the mostimportant management resource (opened MGC
Commons as an institution aiming to develop humanresources who will create innovation)

Initiatives to “balance social and economic value” proceeded broadly as planned.
Under the new medium-term management plan, we will promote sustainability management further.
©MITSUBISHI GAS CHEMICAL COMPANY, INC.

10

New Medium-Term Management Plan
Grow UP 2026
FY2024-FY2026©MITSUBISHI GAS CHEMICAL COMPANY, INC.

11

Approach under Medium-Term Management Plan Grow UP 2026

MissionCreating value to share with society

VisionAn excellent company withuniqueness and presence
built on chemistry

Value

Conduct Philosophy

Vision for MGC in 2030
An excellent company centered on

As a professional group:
1.

MGC Way2.
3.
4.

Courage that does not shy away fromchangeAim for lofty goals
Perseverance in achieving goals
Build team spirit with communication

Uniqueness & Presence

MGC Corporate Behavior Principles
Sustainability Promotion Principle

Planning with a

Vision for MGC in 2030

backcasting approach

New Medium-Term
Management Plan

The new medium-term management plan is positioned as the successor toGrow UP 2023 and our guide for realizing the vision for MGC in 2030

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

12

Vision for MGC in 2030
ー Sharpen businesses defined by “Uniqueness & Presence,” and contribute to solving social issues through businessー For 2030, we aim to achieve net sales 1.2 trillion yen, operating profit of 120 billion yen, operating profit margin of
10% or higher, ROE of 12% or higher, and ROIC of 10% or higher

Financial targets

Management
resources supporting
sustainability

Solve social issues
through businessNet sales

Promote sustainability management＝
Balance social and economic value

1.2 trillion yen

Contribute to developmentof ICT/mobility society

Operating profit

Technological Foundation
Diverse in-housedevelopment technology

120 billion yen

Strengthen the resiliencyof our business portfolio

Operating profit margin

10% or higher

Corporate CultureEnterprising spirit basedon entrepreneurialism

Uniqueness & Presence

Partnerships
Value co-creation with avariety of partners

A Culture of Safety
Cornerstone of businessactivity

2030

ROE

ROIC*

Solve energy and climatechange problems

12% or higher 10% or higher

Non-financial targets

Promote sustainability
management

GHG emissions
Reduction by 39% or more(compared to FY2013)

Sales of “Sharebeing” (MGCGroup eco-friendly products)

Solve medical and foodproblems

500 billion yen
or higher* ROIC = (Operating profit - Income taxes + Equity in earnings of affiliates) / Invested capital (Definitions have been revised for Grow UP 2026)©MITSUBISHI GAS CHEMICAL COMPANY, INC.

13

New Medium-Term Management Plan:
Grow UP 2026 — “Growing," “Winning," and “Sustainable"
Plan Duration: Three years from FY2024 to FY2026
Positioning: Successor to Grow UP 2023; period that contributes to the realization of the vision for MGC in 2030
Retackling previous plan targets and aiming for even higher goals as “an excellent company with uniqueness and presence
built on chemistry.”

Keywords: Uniqueness ＆ Presence

1

Objective

Strengthen the resiliency ofour business portfolio

2

Objective

Promote sustainability
management

Strategy 1

Strategy 1

Focus on “Uniqueness & Presence”

Accelerate initiatives
for realizing carbon neutrality

Strategy 2Strategy 2

Build new value through innovation

Enhance human capital management

Strategy 3

Strategy 3

Restructure businesses requiring
intensive management

Promote materiality management

Promotion of strategies to increase corporate value for realizing
management with an awareness of cost of capital and stock price©MITSUBISHI GAS CHEMICAL COMPANY, INC.

14

Grow UP 2026 Numerical Targets (FY2026)
ー Taking on the challenge again with final-year targets that exceed those of the previous medium-term management plan.
Promoting management with an awareness of the cost of capital and aiming for increase in ROE and ROIC
Grow UP 2026
FY2023
result (A)FY2024
forecast

FY2026target (B)Difference(B) - (A)¥813.4¥780.0¥850.0+¥36.6billionbillionbillionbillionOperating profit

¥47.3

¥52.0

¥85.0

+¥37.7billionbillionbillionbillionOperating profit
margin5.8%

6.7%

10% orOrdinary profit

¥46.0

¥59.0

¥95.0

+¥49.0billionbillionbillionbillion

EBITDA ＊1

¥84.9

¥97.0

¥150.0+¥65.1billionbillionbillionbillion

ROE

6.1%

6.9%

9% or higher+2.9pp

ROIC ＊2

3.3%

6.4%

8% or higher+4.7pp

Net sales*1 EBITDA = Ordinary profit + Interest paid _+ Depreciation and amortization*2 ROIC = (Operating profit - Income taxes + Equity in earnings of affiliates) / Invested capital(Definitions have been revised for Grow UP 2026)

higher©MITSUBISHI GAS CHEMICAL COMPANY, INC.

+4.2pp15

Grow UP 2026 Numerical Targets (FY2026)
By Business Sector
ー Targeting a significant increase in profits due mainly to increase in sales volume of the three ICT businesses(electronic materials, EL chemicals, optical materials)
FY2023
resultFY2026targetGreen Energy & Chemicals¥412.8¥350.0billionbillionSpecialty Chemicals¥409.2¥490.0billionbillion▍ Difference analysis (ordinary profit)
GEC:

Planning increased profit as factors increasing profit, such as
overall sales volume increase, outweigh the impacts ofdeconsolidation of JSP (-¥6.4 billion in operating profit) andincrease in depreciation expenses at MXDA Europe, etc.

Specialty:

Planning increased profit due mainly to increase in sales volume
centered on the three ICT businesses and profitability
improvement for PC-related businesses, despite an increase indepreciation expenses

Net sales

Operating profit
Green Energy & Chemicals¥17.7 billion¥22.0 billion

Specialty Chemicals¥33.0 billion¥65.0 billion

Green Energy & Chemicals¥10.1 billion¥32.0 billion

Specialty Chemicals¥38.6 billion¥65.0 billion

Green Energy & Chemicals¥28.0 billion¥52.0 billion

Specialty Chemicals¥57.9 billion¥100.0 billion

Equity method affiliates, etc.: Planning an improvement by factoring in
improvement in equity in earnings of affiliates due to increase inmarket price for methanol
12.7
95.0

32.0

Ordinary profit
46.0

4.3

FY2023
result

GEC
operatingprofitEBITDASpecialty
Chemicals
operating profit* This slide does not include businesses outside these segments and adjustments©MITSUBISHI GAS CHEMICAL COMPANY, INC.

Equity method
affiliates, etc.

FY2026target16

New Medium-Term Management Plan

Objective 1
Strengthen the resiliency ofour business portfolio©MITSUBISHI GAS CHEMICAL COMPANY, INC.

17

Specific Measures to “Strengthen the resiliency of our business portfolio”
Focus on “Uniqueness & Presence”

Strategy 1

Basic Policies• Further concentration and focus of management resources in “Uniqueness & Presence” businesses (=differentiating businesses)• Reap the benefits of large-scale investments (electronic chemicals, BT materials, MXDA, etc.) conducted

Thoroughly reform thebusiness portfolio,
being strongly mindfulof capital efficiency

under the previous medium-term management plan
• Continue aggressive investment focused on differentiating businesses under the new medium-term
management plan, staying mindful of capital efficiency

Build new value through innovation

Strategy 2• Establishment of MGC strategic research areas (mobility, ICT, medical/food)• Zero in on priority focus themes, concentrate investment of R&D resources (new BT laminate materials, newsemiconductor cleaning solutions, OXYCAPT™, solid electrolytes, continuous carbon fiber composite materials,

1. Redefine highly profitabledifferentiating businesses
as “Uniqueness & Presence”

etc.)• Initiatives targeting life science-related themes (antibody drugs, etc.) and businesses from a companywide
perspective (including examination of organizational structure review)

Select those that are “growing,
winning, and sustainable”• Promotion of theme for resolving problems related to climate change (circular carbon methanol, PC from CO2,
CCS, etc.)

2.Build new value throughinnovation

Restructure businesses requiring intensive management

Strategy 3•

Position PC-related products and “xylene separators/derivatives” as “businesses requiring intensive
management” since they have low profitability and capital efficiency. Promote cost reduction and balance

3. Restructure businesses
requiring intensive
management

sheet streamlining, etc.

+

Initiatives for improving capital efficiency• Strengthen shareholder returns (adopt a progressive dividend policy and raise the total payout ratio), reduce
strategic shareholdings©MITSUBISHI GAS CHEMICAL COMPANY, INC.

18

Strategy 1

Focus on “Uniqueness & Presence”©MITSUBISHI GAS CHEMICAL COMPANY, INC.

19

“Uniqueness & Presence” = Differentiating Businesses
Selection based on Three Dimensions• We have renamed our differentiating businesses as “Uniqueness & Presence” (U&P) businesses• These have been redefined as businesses that excel in growing, winning, and being sustainable, with the ability
to grow continuously by achieving a balance between social and economic value
Social value(Evaluated through non-financial
indicators such as GHG emissions)Sustainableー

Economic value

Creation of social value that
contributes to solving social issues(climate change countermeasures andreduction of environmental impact)

Business potential(Set standards for ROIC and EBITDA)(Evaluated through market share andmarket growth rate, etc.)

Winning

Growingーー

Product development capabilities thatprovide strong price negotiation power
Establishment of unrivaled competitive
advantageー

Existence of large potential marketsーNew market development via creationof new applications and products,
through M&A, etc.

Focusing and strengthening businesses that satisfy the three dimensions= Strengthening the resiliency of our business portfolio©MITSUBISHI GAS CHEMICAL COMPANY, INC.

20

Business Portfolio Classification
ー Comprehensively evaluated each business from three perspectives: economic value, businesspotential, and social value
Economic value evaluation

Business potential evaluation

Social value evaluation

Set standards for ROIC and EBITDA andevaluate business advantage

Evaluate business potential throughmarket share and market growth rate, etc.

Evaluate the medium- to long-termsustainability of the business from thestatus of its GHG emissions andsustainability initiatives, etc.

Comprehensive evaluation
Comprehensively evaluate each business from the above three perspectives

Identify businesses that should receive priority allocation of management
resources and those that should be considered for rebuilding
Business portfolio classification at the start of Grow UP 2026

Uniqueness & Presence = differentiating

Foundation

Requiring intensive
management

New/next-generation

Electronic materials

Inorganic chemicals(EL chemicals, etc.)

Methylamine and ammoniarelated

Energy resources andenvironment



POM



MMA-relatedLife science-related

Optical materials

MXDA/ABAL

Formalin and polyol-relatedNew/next-generation

Methanol

Polymer materials

Oxygen absorbers©MITSUBISHI GAS CHEMICAL COMPANY, INC.



ＰＣ-related

Xylene separators andderivatives

21

Strategic Focus on Uniqueness & Presence (U&P) Businesses
Uniqueness & Presence (U&P) = differentiating

U&P business operating profit

Three ICT businesses= Growth drivers

MethanolElectronic materials

Energy resources and

Inorganic chemicals

▍ Targets in Grow UP 2026

environment(EL chemicals, etc.)



POM

Optical materials

MXDA/Aromatic aldehydesPolymer materials

FY2023

Target¥40.6 billion¥70.0 billion
or higher+1.7 times▍ Action plan
1. Priority allocation of management resources to U&P
businesses
2. Reap benefits of large-scale investments (early return on
investment)
3. Maintain added value by passing on costs to prices
4. Strengthen management based on capital efficiency using the
ROIC tree
System for using a tree that breaks down “operating profit margin x
invested capital turnover rate” to formulate ROIC improvement
action plans for each business and steadily execute them
*Strategy examples for individual businesses are presented on the following pages©MITSUBISHI GAS CHEMICAL COMPANY, INC.

22

Strategic Focus on Uniqueness & Presence Businesses (1)Promoting the Three ICT Businesses
Electronic materials

EL chemicals

Optical materials

Promoting the three
ICT businesses▍ Net sales of the three ICT businesses

The three ICT businesses are growth drivers

1.5 times

Plan for FY2026: Net sales to be 1.5 times higher than FY2023

Three ICT
businesses:*EL chemicals:Electronic materials (BT products, OPE, etc.)

Electronic chemicals (EL chemicals*)

Optical materials

super-pure hydrogen peroxide and super-pureammonium hydroxide, which is used for washingand etching silicon wafers for semiconductors, andhybrid chemicals, which are custom products for
specific processes such as residue removal, etc.

2023

2024

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

2025

2026
23

Strategic Focus on Uniqueness & Presence Businesses (2)Promoting the Three ICT Businesses — Electronic Materials
Expansion of Thailand plant
ー Increase production capacity by approx.
2 times

Electronic
Materials

ー Planned start of operations in Oct. 2025
Molded resin
Semiconductor
integrated circuit

BT laminate
ー BT materials: Currently
expanding our Thailand plant in
preparation for growth indemand in the semiconductor▍ Outlook for semiconductor packaging substrate market (US$ billion)

market. Contribution to sales
increase during the new
medium-term management plan

ー Further expansion expected
for FY2024 onward

ー OPE: Demand is growing for use

19.1

17.4
14.4
12.5

13.6

10.2

as a substrate material for

9%

generative AI servers. Sales

CAGR

expansion forecast during the(2023-2028)

new medium-term management
plan

2020

2021

2022

2023

2024

2028

Source: 2024 Prismark Partners LLC©MITSUBISHI GAS CHEMICAL COMPANY, INC.

24

Strategic Focus on Uniqueness & Presence Businesses (3)Promoting the Three ICT Businesses — EL Chemicals
ー Supply▍ Global semiconductor market forecast(US$ billion)

high-quality

products

toglobalSource: WSTS 2023 Autumn Announcement

semiconductor manufacturers

Electronic
Chemicals

ー Increase in usage of MGC’s chemicals due toincrease in the number of process steps

556

574

2021

2022

588
520

440

with semiconductor miniaturization(EL chemicals)

ー Production capacity increasing worldwide as
semiconductor manufacturers build andaugment production sites
2020

2023

▍ Total production capacity of
EL chemicals▍ EL chemical production sites

2024

1.7 times

SAMYOUNG PURE
CHEMICALS CO., LTD.
HUBEI LINGYONG
ELECTRONIC
MATERIALS CO., LTD.
MGC PURE CHEMICALSTAIWAN, INC.
MGC PURE CHEMICALSSINGAPORE PTE. LTD.

Niigata Plant
Yamakita Plant

MGC PURE CHEMICALSAMERICA, INC.

Yokkaichi Plant
Saga Plant

2020

2023

2026
(plan)©MITSUBISHI GAS CHEMICAL COMPANY, INC.

25

Strategic Focus on Uniqueness & Presence Businesses (4)Promoting the Three ICT Businesses — Optical Materials
Expand applications beyond
smartphone lenses

Optical resin/polymer：
ー Increase in smartphone camera resolution throughincrease in AI smart phones and periscope lenses, etc.
ー Demand for use in automotive cameras and AR/VR

OpticalMaterials

Automotive
camerasheadsets, etc. also expected to grow

AR/VR
headsets

SecuritycamerasBiomass lens monomer

Lens monomers:
ー Plan for new lens monomer production facility in 2026

ー Development of EpisleafTM biomass lens monomer
Sales planned to start in 2024

▍ Smartphone camera resolution increase trend
forecast (ratio of 50 MP+)
Source: Materials by Techno Systems Research Co., Ltd. published in June 2023

▍ Global population of people with myopia and severe myopia forecast
Source: American Academy of Ophthalmology, Vol. 123, May 2016
(Millions of people)

2023

2026

4,758

People with myopia
People with severe myopia

4,089

3,361

Rear main camera

47%

64%

2,620
1,950
1,406

Front main camera

2%

13%

161

277

399

517

CY2000CY2010CY2020

CY2030696

CY2040938

CY2050©MITSUBISHI GAS CHEMICAL COMPANY, INC.

26

Strategic Focus on Uniqueness & Presence Businesses (5)MethanolDual-fuel methanol carrier

Overview of circular carbon methanol concept CarbopathTM
ー Aim to commercialize several 10,000 tonnes of circular carbon
methanol by FY2024, 100,000 tonnes by FY2030, and up to 1
million tonnes from FY2030 onward

FY2021 onward

FY2025 onward

Utilization of by-producthydrogen and recycled CO2
Demonstration of circularcarbon methanol

Commercialization of
circular carbon methanol,using renewable hydrogen

FY2030 onward
Larger scale for circularcarbon methanol
Full introduction toprimary materials industry

Up to

Up to

Up to

several 10,000 tonnes

100,000 tonnes

1 million tonnes

ー Methanol fuel can significantly reduce SOx, NOx, and PM
emissions when combusted compared to conventional
shipping fuelー Circular carbon methanol made from biomass CO2, etc. cansignificantly reduce GHG emissions as a carbon neutral fuelー The number of orders for methanol-fuel ships is expected toincrease, and methanol for fuel use is also expected toincrease▍ Methanol-fueled ships (no. of vessels)
In service
就航済み

Ordered
発注済み

231

236

171
81
30
15

24

29

31

31

31

31

31

2021

2022

2023

2024

2025

2026

2027

2028
Source: DNV©MITSUBISHI GAS CHEMICAL COMPANY, INC.

27

Strategic Focus on Uniqueness & Presence Businesses (6)Energy Resources and Environment Businessー Creation of CCS* business using existing oil and gas fields*Carbon dioxide Capture & Storage

ー Promotion of initiatives for renewable energy business centered on geothermal power generation
ー Expansion of water-dissolved natural gas and iodine business in MGC GroupCCS businessー Aim to start operation of an advanced CCS
business sequestering 1.5 million tonnesof CO2/year in the Higashi-Niigata area by
2030
ー Consider converting existing wells to CO2
injection wells for enhanced natural gas
recovery

Geothermal power
generation business

Water-dissolved natural
gas and iodine businessー In March 2024, started operation of Appiー In April 2024, TOHO EARTHTECH, INC.

Geothermal Power Plant, using promising

started operation of a newly expanded

geothermal resources in the Hachimantai

facility in the Nishikawa district of Niigata

area of Iwate Prefecture

City to increase production of water-ー Also considering commercialization of andinvestment in geothermal power
generation businesses in other areas

ー Promote CCS at water-dissolved gas fields

dissolved natural gas and iodine
ー To promote further production increases,
additional facilities are under construction,
aiming for full operation in FY2026

and blue hydrogen production initiatives

Appi Geothermal Power Plant
Source: Appi Geothermal Energy Corporation(Left) Natural gas production facility, (Right) Iodine concentration plant
Source: TOHO EARTHTECH, INC.

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

28

Strategic Focus on Uniqueness & Presence Businesses (7)MXDA/Aromatic Aldehydes
ー MXDA: Solid demand expected, mainly for infrastructure. Steady start for new plant in Europe and reaping
benefits of investment
ー Aromatic aldehydes: Boosted production capacity under previous medium-term management plan. Demand
growth expected with expansion in applications
MXDA
Infrastructure applications:anti-corrosion coatingsー Europe plant: Planned for completionat the end of 2024 in Europe(Rotterdam industrial area in the
Netherlands), our largest market

Aromatic aldehydes
ー At our Mizushima Plant, boosted production volume with construction
to eliminate bottlenecks and increased production capacity with new
equipment (commercial operation started Nov. 2023)
ー Develop applications as resin transparency nucleating agent toprevent clouding of polypropylene and for aromatic uses, etc.
ー Pursue market-oriented product development for enhancing the high-Infrastructure applications:anti-corrosion coatings
ー Demand for epoxy resin curing agents

value-added product lineup
Resin additive applications

Aromatic applications

is expected to grow stably, mainly forcoatings used in infrastructure

Repair material for wind power
generator blades
ー Expanding adoption for application as
repair material for environmentfriendly wind power generator blades©MITSUBISHI GAS CHEMICAL COMPANY, INC.

29

Strategic Focus on Uniqueness & Presence Businesses (8)POM and Polymer Materials Businesses
ー POM: Capture demand in the China market by increasing production capacity. Promote development ofenvironment-friendly products
ー Polymer materials (MX Nylon, etc.): Expand sales for food packaging material applications. Promote response toenvironmental issues through business
POM
ー Proceed with development of environment-friendly POM products

Polymer materials
ー Expand sales for food packaging material applications by

and construction of their supply system, and contribute to the

expanding regions of use and capturing new demand in the growing

removal of carbon from customers’ products

barrier packaging materials market

ー Expand sales to the medical field, etc., which is expected to growー Through GPAC, invest in business management company for China
POM manufacturing companies. Expected to capture demand in the
China market by increasing production capacity
ー Promote construction of R&D system through GPAC Group (Japan,

ー Create sales opportunities by responding appropriately toenvironmental regulations such as recycling and by promoting theappeal of environment-friendly MX Nylon to the market
ー Rapidly commercialize products through research on new
development products and promotion of market development

Thailand, South Korea)©MITSUBISHI GAS CHEMICAL COMPANY, INC.

30

Operating Profit Trend of Uniqueness & Presence Businesses
ー Re-expand during the new medium-term management plan, mainly by promoting the three ICT businesses
as growth drivers
Operating profit(billions of yen)(

U&P businesses

Other businesses (including head office expenses, etc. that cannot be attributed to GEC and Specialty business sectors) )FY2009–FY2014

FY2015–FY2020

FY2021–FY2023

FY2024–FY2026

MGC Will

MGC Advance

Grow UP 2023

Grow UP 2026

100

80

60

40

20

0

-20

FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022 FY2023 FY2024

FY2026

forecast

plan©MITSUBISHI GAS CHEMICAL COMPANY, INC.

31

Strategy 2

Build new value through innovation©MITSUBISHI GAS CHEMICAL COMPANY, INC.

32

Basic Policies for R&D
ー Focus particularly on ICT, mobility, and medical/food as three target areas, and promote R&D that contributes tosolutions for climate change problems
ー Promote utilization of MI and IP landscape to accelerate R&D
Materiality

Promotion of innovative R&D

Solving climatechange problems

ICT New BT laminate materials

DX New semiconductor
cleaning solutions
 Recycled EP, etc.

R&D themes that help to solve
climate change problems

MI*1
Target areasand productgroups for R&D

IP landscape*2

Mobility Solid electrolytes
 Continuous carbon fiber
composite materials, etc.

67%

75%

80%

FY2023
estimate

FY2026target

FY2030target*3 Carbon Capture and Storage*4 Direct Air Capture OXYCAPT™
 Antibody drugs
 Allergy test
chips, etc.

Materiality KPIs
Ratio of DX
personnel among
research personnel

Medical/Food

 Circular carbon methanol
 Polycarbonate from CO2
 Biomass lens monomer CCS*3
 DAC*4, etc.

*1 Materials informatics: Initiatives to enhance development efficiency of various materials using informatics, such as machine learning*2 Utilizing intellectual property information analysis to make strategic recommendations that contribute to intellectual property management

Materiality KPIs
Ratio of research personnel
helping to solve climatechange problems©MITSUBISHI GAS CHEMICAL COMPANY, INC.

25％
or higher

33

New Product Development Topics (1)ICT
New BT laminate
materials

Mobility
New semiconductor
cleaning solutions

Recycled EP

Continuous carbon fiber
composite materials

Offcuts

Through further advances in BT
resin modification and blending
technology, achieve both low
warping and high machinability oflaminate materials. Application ofthis technology realizes ultra-thininsulation properties andmicrocircuit formation ability forbuilt-up materials.
We will continue to propose andseek feedback on materials forfields such as high-performancesemiconductor packages, highfrequency characteristics
applications, and edge devices.

The development of cleaning
solutions promotes evolution ofsemiconductors by increasing
processing speed, reducing
power consumption, etc.

There are some prospects forestablishing a sorting technology
using Raman spectroscopy forcommercialization of preconsumer recycling of Iupizeta®
EP optical resin/polymer offcuts.

We are proposing
semiconductor cleaning
solutions for new materials
and structures.

We will promote further
demonstration studies going
forward.

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

With distinctive resin andintermediate manufacturing
technologies, we are developing
composite intermediates withcharacteristics such as roomtemperature storage, autoclavefree, and gas barrier properties, andproposing various applications forthem.
We are strengthening application
development, mainly in the UnitedStates, for thermoset resin andfabric prepreg (product name:
ENDUREDGE®), and building asystem for manufacturing and sales.

34

New Product Development Topics (2)Mobility

Medical/Food

Solid electrolytes

Contract manufacturingof antibody drugs

OXYCAPT™

Allergy test chips

Solid electrolyte

Cathode(positive electrode)Anode(negative electrode)

We engaged in joint industryacademia research into solid
electrolytes for all-solid-statelithium ion batteries anddeveloped carborane-basedsolid electrolytes.
We aim to promotecharacteristic evaluation andapplication development, whileadvancing process developmentwith an eye to mass production,
aiming to expand application
development into various fields.

Using 2,000-liter, single-use
cultivation tanks, we areundertaking contracted
manufacturing of
biopharmaceuticals, in particularantibody drugs, at Cultivecs Inc.
We have obtained a
pharmaceutical manufacturing
license, and are accumulating
manufacturing experience under
the GMP system.

We started producing OXYCAPT™
plastic syringes to replace glass
syringes for injection drugs in
2019.
Currently, we are engaged indeveloping the multilayer resin vial
market for biopharmaceuticals andregenerative medicine.
Full-scale adoption for use withoxygen- and carbon dioxidesensitive drugs is currently underconsideration.

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

We are currently developing
allergy test chips capable ofpredicting the severity of foodallergies.

At present, we are building aseverity prediction model andmanufacturing system for
supplying clinical research kits.
In the future, we aim to sell the
chips as in vitro diagnostic
pharmaceuticals.

35

New Product Development and Nurturing
ー Continue to invest aggressively in R&D (R&D expenditures and personnel)
ー Continuously launch new products and promote nurturing of newly launched products▍ R&D expenditures and R&D personnel*1(Units: billions of yen, number of people) *1 Excluding Group companies▍ New product net sales*2*2 Net sales of products launched within the past five years as of FY2024 andproducts scheduled for launch in FY2024 onward

R&D expenditures (billions of yen)

Research personnel

28.0

Expand net sales of new products by

25.6

FY2030 centered on circular carbon

R&D expenditures600
or higher

Research personnel

553

2023

methanol (CarbopathTM)

2024

2026

2023

2024

2026

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

2030

36

Strategy 3

Restructure businesses
requiring intensive management©MITSUBISHI GAS CHEMICAL COMPANY, INC.

37

Status of Withdrawal from Unprofitable Businesses and Reorganization of Associates
ー Despite progress on withdrawal from unprofitable businesses and reorganization of associates,
businesses facing challenges remain
Withdrawal from
unprofitable businesses, etc.

Stopped production of polyacetal at Yokkaichi Plant
Stopped three units for producing formalin, paraformaldehyde,
and hexamine at Niigata Plant

Withdraw from orthoxylene, phthalic anhydride,and phthalate-based
plasticizer businesses

Stopped production of formalin at Yokkaichi Plant
Ended production of TMP and di-TMP

Withdraw from
Osaka Plant of
MGC FilsheetCo., Ltd.
2020

‘21

‘22

‘23

2024

Reorganization of associates,
etc.

Reorganization of the polyacetal business (supervisory function for
POM business assigned to Global Polyacetal Co., Ltd.)
Reorganization of the formalin business(establishment of MGC Woodchem Corporation)
Reorganization of on-site associates at Niigata
Plant (establishment of MGC Advance Co., Ltd.)
Integration of three trading companies within the Group(start of operation of Mitsubishi Gas Chemical Trading, Inc.)

Deconsolidation of JSP
Consolidation of Mitsubishi
Engineering-Plastics Corporation

Delisting of Japan U-PiCA Company, Ltd.

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

38

Strategy for Businesses Requiring intensive management (1)PC-Related (Polycarbonate, Sheet Film)
ー Aim to improve profitability and capital efficiency through adoption of high-value-added strategy andrationalization of production, sales, and R&D systems
Assessment of the current situation
Continued adverse demand and supply environment due to excess
supplyConversion of MEP to a consolidated subsidiary in FY2023.
Reorganization effect is yet to fully materialize, and earning
contribution is limited. Issues with profitability and capital efficiency



For China production sites, focusing on high-added-value fields andprofitability is improving

Sheet film business results are deteriorating due to sales downturn.
Decided to withdraw from Osaka Plant of MGC Filsheet Co., Ltd.

“CO2 to PC” has been selected by the GI Fund. Project in progress

Outlookfor PC

Strategy under the new medium-term management planDeliver maximum effect from MEP reorganization. Reconsider
production capacity in line with business environment and reduce
costs. Rebuild sales and R&D systems



Shift further into high-added-value fields that enable differentiation(aim for percentage of high-value-added products of 45% in
FY2026)

Concentrate sheet film production sites from three down to twosites (withdraw from Osaka Plant of MGC Filsheet Co., Ltd.). Bolster
development and promote sales for new applications

Promote “CO2 to PC” project (verify at pilot plant)

Diverse PC applications include automobiles, electronic equipment, and construction materials. The
market is expected to expand steadilyGeneral purpose PC has a large number of suppliers, including Chinese companies, and theenvironment will remain highly competitive

Expansion of high-value-added applications for highly transparent products, etc.
→Target these fields where MGC can utilize its development capabilities, technical support, and sales
networks(Example: Adoption of MGC’s PC growing in light guides for headlights used in Chinese EVs)

Increase in needs for eco-friendly products→Obtained ISCC certification across the entire PC chain for manufacturing and sale of bio-PC. “CO2 to PC”
selected by the GI Fund, and the project is ongoing. Continue to focus on this as a target field where MGC canleverage its strengths.
©MITSUBISHI GAS CHEMICAL COMPANY, INC.

 Reconsider production
capacity in line withbusiness environmentand reduce costs
 Narrow down the target
to applications thatenable differentiation toincrease profitability

39

Strategy for Businesses Requiring intensive management (2)Xylene Separators and Derivatives
ー Positioned as infrastructure to support downstream MXDA, etc. Continued production to be determined in linewith growth of downstream products
Assessment of the current situation

Strategy under the new medium-term management plan

PIA business environment remains challenging due to excess supply

Decision to withdraw from unprofitable OX-related chain (OX-PAplasticizer)

MX-PIA: Positioned as infrastructure to support downstream MXDA,etc.



Continue further cost reduction

Continued production to be determined in line with growth ofdownstream products▍ Product chain for xylene separators and derivatives
Xylene separators andderivatives

Mixed xylene

U&P
business

Meta-xylenediamine(MXDA)

Meta-xylene (MX)U&P
business

Reny(Molding compound)

MX Nylon(External procurement)

U&P
business

U&P
business*

Para-xylene (PX)

*Low-risk business operation through JV

Purified isophthalicacid (PIA)

1,3-BAC**1,3-bis(aminomethyl)cyclohexane

Ortho-xylene(OX)

Phthalic
anhydride

Phthalate-based
plasticizers

Decided to withdraw due tocontinued unprofitability

U&P
business

Aromatic aldehydes©MITSUBISHI GAS CHEMICAL COMPANY, INC.

40

New Medium-Term Management Plan

Objective 2
Promote sustainability management©MITSUBISHI GAS CHEMICAL COMPANY, INC.

41

Our Sustainability Management Foundation
The Group’s Platform for Corporate Value
Sustainable

Objective

1

Strengthen the resiliency of our business portfolio
Winning

Objective

2

Growing

Strategy 1

Accelerate initiatives for realizing carbon neutrality

Strategy 2

Enhance human capital management

Strategy 3

Promote materiality management

Promote sustainability management
Strengthen foundations forsustainability management©MITSUBISHI GAS CHEMICAL COMPANY, INC.

42

Strategy 1: Accelerate Initiatives for Realizing Carbon Neutrality
MGC’s Roadmap to Carbon Neutrality▍ GHG emissions and factors behind increases and decreases(10kt-CO2e/year)

45

14

10

Changes in emissions due to businessportfolio reforms from 2022 to 2026

178

2013

133

119

109

109

2022

2026

2030

2050

2013-2022

Period2023-2026

Increase due to new manufacturing base constructionand expansion(13.6)

Decrease due to consolidation and elimination of
manufacturing bases and suspension of facilities, etc.

23.0

2027-2030

2031-2050

2.6

46.9

13.6
23.0

133

119

2022

Reduction in emissions due to R&D collaboration*1
Reduction ofemissions(Scope 1)

Reduction ofemissions(Scope 2)Upgrade to highly efficient facilities,
energy savings

45.0

1.9

2.6

Fuel change

1.1

0.2

Introduction of renewables and use oftransitional energy

1.5

2.3

30.5

2.4

21.6

Collaboration with energy supply
companies

Businesses and technologies
contributing to emissions
reduction*1 Deploy new energy systems/CCUS, etc.
*2 Carbon Capture and Storage

CCS*2*3

Appi Geothermal
Power Plant*4*3 Source: Japan CCS Co., Ltd.
*4 Provided by Appi Geothermal Energy Corporation

4.5

10.0

Circular carbon
methanol©MITSUBISHI GAS CHEMICAL COMPANY, INC.

2026
Increase due to new manufacturingbase construction and expansion
Decrease due to consolidation andelimination of manufacturing bases
and suspension of facilities, etc.
Reduction of emissions(Scopes 1 and 2)

Eco-friendly products

43

Strategy 1: Accelerate Initiatives for Realizing Carbon Neutrality
MGC Group Eco-friendly Product “Sharebeing”
ー “Solve social issues through business” as a materiality issue of the new medium-term management planー Sharebeing established as an MGC Group eco-friendly product, working to further expand products that
contribute to the environment

Establishment of Sharebeing and setting of materiality KPIs

▍ Sharebeing product sales (billions of yen)

(MGC Group eco-friendly product*)

500.0“Sharebeing” is derived from the words “share” and “being.”
Under our mission of “creating value to share with society,” we are dedicated toproviding “Sharebeing: products that can be shared with society” to reduce theenvironmental impact of society by leveraging our unique and distinctive
technologies to create valuable products that meet society’s demands.

270.0

https://www.mgc.co.jp/eng/sustainability/eco-friendly/

Materiality/KPI

Solve social issues
through business

204.3

Sharebeing product sales

270.0

500.0

billion yen

billion yen

billion yen

FY2023 result

FY2026 target

FY2030 target

204.3

2023

*Eco-friendly products: A group of valuable products that meet society’s demands while reducing its environmental impact, created by leveraging
our unique and distinctive technologies and guided by our mission of “creating value to share with society.”©MITSUBISHI GAS CHEMICAL COMPANY, INC.

2026

2030

44

Strategy 2: Enhance Human Capital Management
ー Promote management focused on human resources as the most important capital for value creation for some timeー Under the new medium-term management plan, continue ongoing development of key personnel and focus on
nurturing and utilizing human resources to create U&P businesses

Towards continuous creation of U&P businesses
In an open corporate
culture, diverse humanresources can have diverse
experiences, stimulatingeach other, sparking
chemical reactions andgrowth, and ultimately
creating innovation.

Continuously develop key personnel
who are able to cope with change
and grow over the long term
Diverse human resources
stimulate each otherMid-career
hires

Women’s
empowerment

Managementhuman resources

Materiality/KPIs

Highly specialized
human resources▍Cultivating a corporate culture of job satisfaction
specialty field
and morewide rangeof fields

Ratio of employees experiencing job satisfaction

Diverse experiences

65％

70％

75％

FY2021 result

FY2026 target

FY2030 target(job rotation, etc.)
Research

Management▍D&I promotion Number of female managerial personnel
Business division

Open corporate culture

Global

Production site

Enterprising spirit based on entrepreneurialism
Management concept

40

60

90

FY2023 result

FY2026 target

FY2030 target

Corporate culture of valuing people

Human resource development policy©MITSUBISHI GAS CHEMICAL COMPANY, INC.

45

Strategy 2: Enhance Human Capital Management
TopicsMGC Commonsー A training center for “personal development” that goes beyond the conventional
scope of training and respects human capital
ー Provides a space for connecting diverse internal and external people andorganizations to create innovation
ー Opened on December 1, 2023. Full utilization planned under new medium-term
management plan Grow UP 2026

Examples of utilizing MGC CommonsUse for internalexternal exchanges

R&D Division theme presentations

 Through presentations, research personnel present

the attraction and progress of their themes
 Promotion of exchanges among research personnel

beyond their themes

Initiatives to utilize researchers’ sense of playfulness
10% rule of R&D

 Research personnel can devote 10% of their working hours

to their own personal-interest projects
 Presentations and exchange events for the above projects

are held at each research site
©MITSUBISHI GAS CHEMICAL COMPANY, INC.

46

Strategy 3: Promote Materiality Management
ー In the new medium-term management plan, continue to promote materiality management based on materiality
ー Ensure execution of sustainability management by setting KPIs based on materiality as non-financial indicators(see page 63-65)

HumanrightsSafetyEnhancehuman
capitalGovernance

Environment
環境©MITSUBISHI GAS CHEMICAL COMPANY, INC.

Promotionof R&D47

New Medium-Term Management Plan

Investment and financing plan, capital
policy, and shareholder return policy©MITSUBISHI GAS CHEMICAL COMPANY, INC.

48

Progress for Major Investment Projects and Investment Plan for Grow UP 2026
ー Made investments of approx. ¥210 billion compared to planned ¥240 billion under the previous medium-term management plan
ー Continue a high level of investment under the new medium-term management plan. Planned investment totaling approx. ¥300 billion,
with a focus on U&P businesses

Major investments in U&P businesses
Grow UP 2023
FY2021

FY2022Grow UP 2026
FY2023

FY2024 Onward

IC plastic packaging BT materials: Boosting production capacity (Thailand)

Three ICT businesses

Optical resin/polymer plant expansion (Kashima)

Three ICT businesses

EL: Establishing new raw material hydrogen peroxide plant (China)

Three ICT businesses

EL: Establishing new super-pure hydrogen peroxide plant (China)

Three ICT businesses

Aromatic aldehyde plant expansion (Mizushima)
Super-pure hydrogen peroxide: Boosting production capacity (Cheonan, South Korea)

Three ICT businesses

New development of water-dissolved natural gas and iodine (Nishikanbara, Niigata)

Otherbusinesses

Super-pure hydrogen peroxide: Boosting production capacity (Oregon, U.S.A.)¥50.0
billionSuper-pure ammonium hydroxide: Boosting production capacity (Singapore)
Establishing new optical resin raw material monomer plant (Niigata)
EL: Establishing new raw material hydrogen peroxide plant (Taiwan)

Grow UP 2026

Three ICT businesses
Three ICT businesses
Three ICT businesses
Three ICT businesses

MXDA: Establishing new production facility (Netherlands)

Investment AmountSuper-pure hydrogen peroxide:
Boosting production capacity (Texas, U.S.A.)
Super-pure ammonium hydroxide:
Boosting production capacity (Texas, U.S.A.)
IC plastic packaging BT materials:
Boosting production capacity (Thailand)

Total¥300.0 billion

Establishing new lens monomer manufacturing plant (Yokkaichi)

U&P businesses¥250.0 billion

Three ICT businesses
Three ICT businesses
Three ICT businesses
Three ICT businesses

New development of water-dissolved natural gas and iodine (Higashi-Niigata, Niigata)Super-pure hydrogen peroxide:
Boosting production capacity (Arizona, U.S.A.)

Three ICT businesses

Establishing new production facility for circular carbon methanol (Japan)
Super-pure ammonium hydroxide:
Boosting production capacity (Niigata)Super-pure hydrogen peroxide:
Boosting production capacity (Saga)©MITSUBISHI GAS CHEMICAL COMPANY, INC.

Three ICT businesses
Three ICT businesses

49Capital Allocation and Finance/Capital Policy
ー Estimated total investment (investing cash flows) of approx. ¥300 billion during the new medium-term management planー Aggressive utilization of external capital, focused on strategic investment tied to growth (including R&D, ESG)
ー More robust shareholder returns: Adopt a progressive dividend policy; raise the total payout ratio (50% target)(See next page)¥ billion

Grow UP 2023

Groｗ UP 2026

Growth investment promotion

Approx.
290
180.7

Approx.
(300)(205.1)
External funding utilization

91.1(65.6)

64.4

Total
payoutratio ofabout 50%

65.3

Ample shareholder returns(Total payout ratio 40%→50%; progressive dividends)
Cash anddeposits

OperatingCF

InvestingCF

Shareholder
returns

Otherfinancing CF

Cash anddeposits

OperatingCF

InvestingCF

Shareholder
returns©MITSUBISHI GAS CHEMICAL COMPANY, INC.

Other
financing CF

Cash anddeposits

50

Shareholder Return Policy under the New Medium-Term Management Plan
ー Enhance shareholder returns through the new medium-term management plan. Introduce progressive dividends*
and raise the total payout ratio*Covers the three-year period of the new medium-term management plan. Annual dividends will be maintained or increased from a minimum of
90 yen per share.

(1) Adopt a progressive dividend policy (in principle, no reduction – either increase or maintain)
Since FY2009, we have steadily raised dividends without reducing them. In the new medium-term
management plan, we will adopt progressive dividends to make our dividend policy clearer.
(2) Raise the total payout ratio from about 40% under the previous medium-term management plan toroughly 50%
Flexibly purchase treasury stock and seek to boost capital efficiency
Shareholder return policy to date(through FY2023)

Shareholder return policy under the
new medium-term management plan (from FY2024)

ー Continuation of stabledividends

ー Adopt “progressive dividend policy”

ー Aim for a total payout ratioof 40%ー Raise the total payout ratio to roughly 50%

ー Conducted flexible
purchasing of treasury stock(In principle, no reduction – either increase or maintain)(Strengthen flexible purchasing of treasury stock and fluidly
implement as an additional shareholder return measure)©MITSUBISHI GAS CHEMICAL COMPANY, INC.

51

New Medium-Term Management Plan

Action to Implement Management that is
Conscious of Cost of Capital and Stock Price©MITSUBISHI GAS CHEMICAL COMPANY, INC.

52

Analysis of Current Status for Improving Corporate Value (1)▍ Market valuation▍ Capital profitability

ー The Company’s PBR started to climb toward the end of FY2023, mainly from businessー

Capital profitability trended lower in FY2023, reflecting factors that mainly included slumping

portfolio reform centered on U&P businesses and more robust shareholder returns.

demand for semiconductor-related products, along with poor product sales across the board in

However, since the multiplier remains below 1.0, we recognize this as a relatively soft

line with softer global economic activity.
We recognize ROIC was below capital cost, while ROE was below shareholders’ equity costlevel in terms of share price indicators

Term-end share
2,714

price (¥/share)ー

FY2024 is also expected to see ROE and ROIC at low levels, largely from accumulated investmentーWe recognize divergence from expected market returns in both ROE and ROIC.
We seek to improve ROE and ROIC mainly through strengthening the resiliency of our business

2,590
2,081

portfolio and a focus on management emphasizing quality

1,963
ー

1,176

Regarding capital cost, we also recognize the importance of actions to control risk premiums,
notably by using earnings stability to reduce volatility, taking advantage of financial leverage, andraising market presence through ongoing and proactive dialogue with market participants

FY2019FY2021

FY2022

FY2023

ROE, ROIC trends

Term-end PBR(times)

FY2020Shareholders’ equity cost Around 6.5–7.5% (CAPM basis)
Capital cost
Around 5.0–6.0% (CAPM basis)

1.1
0.8

1.0
0.5

0.7

ROIC

0.8

8.8%

ROE
9.0% or higher

8.3%

7.1%
FY2019FY2020

FY2021

FY2022

6.9%
6.1%

7.4%

FY2023
4.3%

6.4%

6.2%

8.0% or higher
6.4%

Term-end PER(times) andROE (%)

15.7
11.7

8.8%

8.3%

9.0

8.2

13.6

3.6%

6.1%

FY2019

3.3%

PER
7.1%

ROE
4.3%
FY2019FY2020

FY2021

FY2022

FY2020

FY2021

FY2022

FY2023

FY2024(forecast)

FY2026(plan)FY2023©MITSUBISHI GAS CHEMICAL COMPANY, INC.

53

Analysis of Current Status for Improving Corporate Value (2)▍ Breakdown and analysis of PBR
and ROE components

PER (times)
20.0

Industry peers (15 companies,
chosen by MGC)

Shareholders’ equity cost

15.7

MGC
15.0

Expected growth rate

13.6

Operating profit margin

11.7
9.0

10.0

8.2

12%
10%
8%

5.0

PBR (times)

6%

1.4

4%

0.0
FY2019FY2020

FY2021

FY2022

FY2023

1.1

1.2
1.0

0.8

0.8
0.7

0.8
0.6
0.4

MGC has a relatively low PER. In addition tofurther boosting growth expectations
among investors by raising market presence
through proactive and ongoing
communication with market participants,
initiatives will also be needed to control risk
premiums by using earnings stability to
reduce volatility among other steps.

0.5

5.6%

6.3% 5.8%

2%0%
FY2019FY2020

FY2021

FY2022

FY2023

Invested capital turnover rate
1.5

1.05

1.00

1.09

1.07

0.96

1.0

0.2

ROE
FY2020

FY2021

FY2022

Invested capital turnover rate
is currently at an average level.

0.5

0.0
FY20197.5% 7.8%

MGC has a relatively low
operating profit margin. Under
the new medium-term
management plan, we seek toboost profitability by raising it
to 10% or higher throughmeasures to enhance businessportfolio resilience.

FY20230.0

14%FY2019FY2020

FY2021

FY2022

FY2023

12%

8.8%

10%

8.3%

Financial leverage
6.1%

8%
6%

7.1%

4%
2%

4.3%

0%
FY2019FY2020

FY2021

FY2022

FY2023

ROE is declining at the moment. Various
improvement measures will be taken to
lift it to 9% or higher under the new
medium-term management plan.

2.8
2.4
2.0
1.6
1.2
0.8
0.4
0.0

1.58

1.58

1.61

1.66

1.62

FY2019FY2020

FY2021

FY2022

FY2023©MITSUBISHI GAS CHEMICAL COMPANY, INC.

Financial leverage is somewhat
below average levels. There is
still room to utilize financial
leverage while maintaining
financial discipline.

54Specific Initiatives for Improving Corporate Value (1)▍ Improved profitability through capital cost awarenessー Improve the equity spread and ROIC-WACC spread, and make best effort to achieve

FY2021

FY2022

FY2023

FY2024FY2026

resultresultresultforecast

target

ROE

8.8%

8.3%

6.1%

6.9%

9% or more

ROIC*

7.4%

6.4%

3.3%

6.4%

8% or more

D/E ratio

0.21

0.27

0.26

-

-

medium-term management plan targets by strengthening the resiliency of ourbusiness portfolio and zeroing in on management emphasizing quality
ー Commit to ROIC management. Continue calculating ROIC at the business-unit leveland strengthen analysis and management of capital profitability and other measuresin each business. Also continue to build understanding internally through study
sessions on the ROIC tree and other topics
ー Using the D/E ratio as a KPI, establish in-house target values from the perspective ofcapital efficiency as a floor, and financial soundness as a ceiling; be cognizant toutilize financial leverage*ROIC = (Operating profit – income taxes + equity in earnings of affiliates)/Invested capital▍ More resilient business portfolio
ー Through measures outlined in the medium-term management plan: 1. Focus on“Uniqueness & Presence,” 2. Build new value through innovation, and 3. Restructure

Focus on “Uniqueness & Presence” (U&P) = Operating profit in U&P businesses(billions of yen)

FY2015–FY2020

businesses requiring intensive management, we will accelerate efforts to build a more
resilient business portfolio and home in on further improvement in capital profitability

Operating profit

100

Focus on “Uniqueness & Presence”: Action planContinue aggressive investment focused on U&P
businesses, staying mindful of capital efficiency

FY2021–FY2023

MGC Advance

FY2024–FY2026

Grow UP 2023

U&P businesses

Grow UP 2026

Other businesses (including head office expenses, etc. that cannot be
attributed to GEC and Specialty business sectors)

90
80
70
60
50
40





Reap the benefits of major investments carried out since
the previous medium-term management plan at an early
stage
Maintain added value from shifting various costs to prices

30
20
10
0

'15

'16

'17

'18

'19

'20

'21

'22

'23

'24
(予想)
forecast

'26
(計画)
plan

Aim for further improvement in capital profitability through greater business portfolio resilience andcontinuing/reaping the benefits of growth investments focused on U&P businesses©MITSUBISHI GAS CHEMICAL COMPANY, INC.

55

Specific Initiatives for Improving Corporate Value (2)▍ Continued enactment of proactive shareholder returnsー▍ Reduction of strategic shareholdings

Raise the total payout ratio from the previous medium-term management plan (40%) toーconsolidated net assets that, at the moment, is rising due to increasing market value ofroughly 50% over the medium termーpublicly traded shares. However, this remains at a level below the voting rights exercise

Assuming financial soundness is not compromised, adopt a progressive dividend policy

standard of major proxy advisory firms overseas.

dedicated to building up the dividend while avoiding any decreaseーChange in shareholder returns (¥ bn/%)
Dividends

50
45
40
Policy underprevious plan for35
total payout ratio
30
about 40%
25
20

42%

Share buybacks

47%

5

Going forward, our policy is to promote the appropriate sale of shares deemed to exceed
reasonable levels of shareholding, following annual examination of the purpose and meaningof holding individual stocks by the Board of Directors.

Total payment ratio (most recent 3-year avg.)

3-year average total payout ratio
under current plan
= approx. 49%
52%

49%

50%

41%

Policy under new
medium-term
management plan

Proportion of strategic shareholdings in consolidated net assets

around 50%(¥ bn/%)

60%

50%

20.0%

Strategic shareholdings

Deemed shareholdings

15.0%

40%

80

30%

7.0

8.7

10.0

14.8

6.5%

7.3%

20%

15
10

Despite progress in reducing strategic shareholdings, these occupy a proportion of

14.5

16.6

16.3

16.2

18.0

0

8.3%
6.2%

10.0%
10.0%

5.7%

10%

5.0%

0%

FY2019FY2020

FY2021

FY2022

FY2023

FY2024
forecast

Net profit (¥bn.)

21.1

36.0

48.2

49.0

38.8

46.0

Full-year
dividend

70

70

80*

80

80

90

0.0%

FY2019▍ Promote various initiatives to reduce capital costー Shift to U&P businesses, use growing earnings stability to reduce volatility
ー Strengthen B/S control (financial leverage utilization, etc.)
ー Enhance cash-generating capabilities (CCC improvement, review and sale ofredundant or low-performing assets, etc.)
ー Promote sustainability management (shift to carbon neutral businesses, improve ESG
evaluation, etc.)
ー Enhance appeals to individual investors, etc.

FY2021

FY2022

FY202323 stocks over past six years (full sale of 15 stocks); cumulative sale of roughly ¥19 billion*Based on actual results. Includes partial sale of some shareholdings and sale of deemed shareholdings(¥/share)*Interim dividend of ¥45 (incl. ¥10 commemorative dividend); term-end dividend of ¥35

FY2020▍ Continue proactive dialogue with investors; further boost market
presenceー

Further increase opportunities for dialogue between management, investors and analysts(incl. overseas IR)ーEnhance business briefings, facility tours and other IR eventsーImprove and enhance various information disclosures (incl. English-language disclosures)ー

Promote dialogue through ESG/stewardship code interviews, interviews with outside
directors, etc.

ーHold IR for individual investors, etc.
©MITSUBISHI GAS CHEMICAL COMPANY, INC.

56

Reference materials©MITSUBISHI GAS CHEMICAL COMPANY, INC.

57

[Reference Materials] Indicators (1)Grow UP 2026
FY2021
resultFY2022
resultFY2023
resultExchange rate
(JPY/USD)

112

135

Exchange rate
(JPY/EUR)

131

Crude oil price (Dubai)（US＄/BBL）

Methanol (USD/MT)
Asia spot average price

FY2024assumption

FY2026
assumption

145

145

135

141

157

155

145

78

93

82

80

80

399

363

310

345

365

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

58

[Reference Materials] Indicators (2) (Consolidated Basis)
Grow UP 2026

Depreciation
expenseFY2019resultFY2020resultFY2021
resultFY2022
resultFY2023
resultFY2024
forecast

FY2026
plan

29.5

３０.６

31.9

33.5

36.3

35.0

54.0

19.6

１９.９

21.0

23.5

25.6

28.5

28.0

8,954

８,９９８

9,888

10,050

7,918

8,166

8,500

(billions of yen)

R&D
expenditures(billions of yen)

Employees at
fiscal year-end©MITSUBISHI GAS CHEMICAL COMPANY, INC.

59

[Reference Materials] Achievement Status of Materiality KPIs in Grow UP 2023 (1)ー Net sales of relevant applications set as a KPI for the development of an ICT and mobility society.
Meeting the FY2023 targets with a contribution from increases in net sales by application, etc., due to consolidation of Mitsubishi EngineeringPlastics Corporation
ー Three-year cumulative investment amount set as a KPI for solving energy and climate change problems.
With some investments being delayed, the FY2023 target has not been met, but we plan to execute these investments under Grow UP 2026
ー Net sales of relevant applications set as a KPI for solutions to medical and food problems.
Net sales for FY2023 met the target as a result of creating new products, developing markets, and expanding business, etc.

KPI
Materiality
Solve social issues through businessContribute todevelopment of
ICT/mobility society

Qualitative targets

Contribute through business to ICT, AI,
robotics, blockchain, CASE and other digital
innovations, and work to enhance corporate
value

Contribute to solving energy and climatechange problems by participating in
geothermal and LNG power generation, by
Solve energy anddeveloping products using CO2 and biomass as
climate change problems raw materials, and through products
that
contribute to the environment, and work toenhance corporate value

Solve medical and foodproblems

Contribute through business to QOL
improvements, extended healthy life
expectancy, anti-aging and reduction of foodand beverage waste loss, and work to enhance
corporate value

Action plan

FY2020resultExpansion of sales of products that contributeto QOL, further development of markets inpharmaceutical and medical fields, etc.

FY2023
result/estimate

Consolidated net sales from ICT/mobility
applications

Turn out new products that contribute todigital innovation and lighter weight mobility

Development of manufacturing technology
using CO2 as a raw material(Ex.: CO2-derived methanol, intermediate forpolycarbonate production)

FY2023target¥234.2billion¥320.0billion¥339.5 billion(result)

Investments aimed at solving problems(consolidated, three-year cumulative)¥8.6 billion¥12.0 billion¥10.0 billion(estimate)

Consolidated net sales from medical and foodapplications¥39.4 billion©MITSUBISHI GAS CHEMICAL COMPANY, INC.

¥50.0 billion¥57.4 billion(result)60

[Reference Materials] Achievement Status of Materiality KPIs in Grow UP 2023 (2)ー KPIs for MGC’s GHG emissions (non-consolidated) and renewable energy as a percentage of electric power purchased set as KPIs
for air quality control.
Expecting to meet FY2023 targets by promoting GHG emissions reduction and renewable energy introduction, including purchase ofnon-fossil certificates
ー MGC's zero waste emission rate (non-consolidated) set as a KPI for promoting reduction of industrial waste.
Expecting to achieve FY2023 target by promoting zero emissions

KPI
Materiality

Qualitative targets

Action plan

FY2019resultFY2023targetFY2023
estimate

GHG emissions vs. FY2013
Harmonize value creation
with environmental protection

Air quality
control

Under the principles of sustainable development,
corporations have a responsibility to take care that
their business activities are in harmony withprotection of the global environment

Phased reduction of GHG emissions andintroduction of renewable energy, etc.
aimed at achieving carbon neutrality by
2050

23%
reduction

Consider waste as useful material and energy
resources, moving forward with efforts to makecyclical use of resources and reduce environmental
impact, while promoting resource recycling

37%
reduction

Renewable energy as a percentage ofelectric power purchased
0％

Reduction ofindustrial
waste

28%
reduction

10％

23％

Zero waste emission rate
Promote zero emissions, etc.
0.8％

0.3％
or less

0.12％*The above are on a non-consolidated basis©MITSUBISHI GAS CHEMICAL COMPANY, INC.

61

[Reference Materials] Achievement Status of Materiality KPIs in Grow UP 2023 (3)ー Steadily conducted initiatives led to meet targets for taking annual leave
ー Meeting zero serious occupational accidents and zero serious accidents
ー Expecting to fall short of target for GHG emissions intensity reduction due to the impact of capacity utilization, despite promoting various
improvement activities
ー Progressed as planned on R&D for resolving climate change issues, including circular carbon methanol and CO2 derived PC development
KPI

Strengthen discipline andfoundation supporting business activities

Materiality

Qualitative targets

Cultivating a
corporate cultureof job satisfaction

Create a highly productive organization by providing
opportunities and an environment in which each employee canadapt to diverse, flexible styles of working while refining theirown characters and abilities and developing their strengths

Action plan

Promotion of work-life balance, etc.

FY2019resultFY2023targetFY2023
result/estimate

Percentage taking fewer than 10 days of annual paid
leave*18％0%0％(result)

Serious occupational accidents*2
Occupationalsafety and health /Process safety anddisaster prevention

Safety is the foundation of business activities. Companies
have a societal duty to ensure safety.

0

Share and utilize examples of accidents anddisasters, promote process risk assessments,
etc.

Harmonize business activity with environmental protection by
reducing emissions intensity through ultra-stable operation of
production equipment, utility production using high-efficiency
equipment, and process development and improvements

Promotion of
innovative R&D

Engage in R&D aimed at the long-term goal of solving climatechange problems through proprietary technology andcollaboration via open innovation(result)

Serious accidents*3
1

Highly energy- andresource-efficient
production

0

0

0

0
(result)

GHG emissions intensity vs. FY2013

DX advancements (SMART-MGC Project), etc.

Construction of a site for human resource
development and creation of innovation

14.6%
reduction

19.9%
reduction

12.5% reduction(estimate)

R&D investments devoted to solving climate change
problems*4
3.8% of R&D
expenditures*1 Excluding employees given less than 20 days of annual leave and those on other types of leave*2 Accidents resulting in lost workdays eligible for disability compensation, including death and permanent disability, or potential disability, and those with four or more lost workdays*3 Accidents that threaten third parties, including those resulting in environmental pollution involving community or that cause damage to local residents, and other accidents involving serious damage*4 R&D investments including basic research, pilot plants, technical testing, etc.

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

5% or more of
R&D
expenditures

14% of R&D
expenditures(estimate)*The above are on a non-consolidated basis

62[Reference Materials] Setting of New Materiality KPIs in Grow UP 2026 (1)ー Set materiality KPIs for revised materiality
ー FY2030 targets and interim FY2026 plans have been determined for KPIs
ー Reporting boundaries have been set with awareness of the Group, particularly consolidated companies

Materiality

Contribution to solving social issues
through business

Materiality KPIs

Sales of “Sharebeing” (MGC Group ecofriendly products )MGC +consolidated
companies

Reduction in GHG emissions(compared to FY2013)

MGC +consolidated
companies

Zero waste emission rate*1

MGC +consolidated
companies(domestic)

Energy usage reduction rate*2(compared to FY2023)

MGC +consolidated
companies

Proactive response to environmental
problems

Highly energy- and resourceefficient production

Reportingboundary

Result/Estimate¥204.3 billion(FY2023 result)

25% reduction(FY2022 result)

1.4%(FY2022 result)—*

3*1 Amount of final disposal/total amount of industrial waste generated*2 Reduction in energy usage resulting from energy-saving improvements (based on 100% capacity utilization)/average annual energy usage for FY2021 to FY2023*3 FY2022 result was -0.4% compared to FY2021©MITSUBISHI GAS CHEMICAL COMPANY, INC.

FY2026plan

FY2030target¥270.0 billion¥500.0 billion

33% reduction

39% reduction

1.2%

1.0%

-3.0%

-7.0%

63

[Reference Materials] Setting of New Materiality KPIs in Grow UP 2026 (2)ー Expand KPIs for promotion of innovative R&D and enhancement of human capital management

Materiality

Materiality KPIs

Reportingboundary

Result/Estimate

Percentage of R&D contributing toincreased resilience of business portfolio

MGC +consolidated
companies

Percentage of research personnel
contributing to solving climate change
issuesMGC +consolidated
companies

Percentage of DX human resources among
research personnel

MGC +consolidated
companies

Cultivating a corporate culture ofjob satisfaction

Percentage of employees that feels
satisfied at work

Nonconsolidated(FY2021 estimate)

Promotion of diversity andinclusion

Number of female managerial
personnel

Nonconsolidated(FY2023 estimate)

Promotion of innovative R&D

64%(FY2023 estimate)28%(FY2023 estimate)

67%(FY2023 estimate)

65%

40

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

FY2026plan

FY2030target６０％ or higher

６０％ or higher

２5％ or higher

25％ or higher

75%

80%

70%

75%

60

90

64

[Reference Materials] Setting of New Materiality KPIs in Grow UP 2026 (3)ー The following KPIs have been set for safety, governance, human rights, etc.

Materiality

Materiality KPIs

Reportingboundary

Result/Estimate

FY2026plan

FY2030target00

Ensuring occupational safety
and health / Process safetyand disaster prevention

Serious occupational
accidents*1/serious accidents*2

MGC +consolidated
companies

Chemical/product quality andsafety assurance

Product liability incidents, serious*4
legal and regulatory violations,serious*4 quality issues

MGC +consolidated
companies

Percentage of suppliers in agreementwith Company’s basic approach to raw
material procurement activities and its
CSR procurement guidelines

Nonconsolidated

Percentage of consolidated companies
required to conduct CSR procurement
activities

MGC +consolidated
companies

Strengthening governanceand internal control/riskmanagement/compliance

Number of serious complianceviolations

MGC +consolidated
companies

Respect for human rights

FY2026: Human rights due diligence conducted at 100% of MGC + consolidated companies
FY2030: Establish human rights management and ensure support for human rights policy by all stakeholders

Promotion of socially
responsible sourcing

4*3 / 0
（FY2023 Q1-3）

0（FY2023 Q1-3）

0
MGC + domestic
consolidated companies

80%

100%

(Not implemented)(Not implemented)

0
MGC + domestic andoverseas consolidated
companies

60%

100％

(Domestic consolidated
companies)(Domestic and overseas
consolidated companies）

00

0（FY2023 Q1-3）*1 Accidents resulting in lost workdays eligible for disability compensation, including death and permanent disability, or potential disability, and those with four or more lost workdays*2 Accidents that threaten third parties, including those resulting in environmental pollution involving the community or that cause damage to local residents, and other accidents involving serious damage*3 At consolidated companies*4 Losses of over ¥1.0 billion or more

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

65

[Reference Materials]
Carbon Neutrality as a Business Opportunity for the Company (1)Target Areas

ー Use the Company’s distinctive technologies to promote the development of products and technologies
conducive to decarbonization
Development of products and technologies conducive to decarbonization

Technology for methanol
manufacturing using CO2 as raw
material

Polycarbonate
from CO2

Energy control
systems:
Semiconductormaterials

Direct Air Capture (DAC):Special amines

Technology for hydrogen
manufacturing using methanol as
raw material (catalyst)

Clean ammonia
procurement

Geothermal
power
generation

All-solid-statebatteries (for EVs)
Fuel cells (forFCVs)

(fuel, greenhydrogen raw
material)

LNG power
generation+
CCUS*

Biodegradable
polymers

Chemicalrecycling

Methanol: Hydrogen carriersMore efficient driving: Optical polymers
used in automotive sensing cameras*Carbon dioxide Capture, Utilization, and Storage©MITSUBISHI GAS CHEMICAL COMPANY, INC.

66

[Reference Materials]
カーボンニュートラル戦略（全体像）
Carbon Neutrality as a Business Opportunity for the Company (2)Pipeline

2030
Circular carbon
methanolJudgment on demonstration(up to 2025)

Clean ammonia

Consideration of factors such as where to conduct
procurement and conditions thereof

Polycarbonate
from CO2

Bench plantverification(up to 2024)

CCS at Higashi-Niigata
Oil and Gas Field

Larger-scale and full introduction
to primary materials industry

Commercialization (up to 2030)

Pilot plant verification (up to 2028)

2050

Commencement ofprocurement

Commercialization

Judgment on commercialization (up to 2030)

Implementation

実証判断 （～’30）

CCS at water-dissolved
natural gas fields

FS of business viability(up to 2026)

Judgment on commercialization(up to 2030)©MITSUBISHI GAS CHEMICAL COMPANY, INC.

Implementation

67

Forward-looking Statements

Thesematerials

statements

containconcerning

performancethefuture.

forecasts
These

and

other

forward-looking

statements are based on information available at the time. Thesematerials were prepared and on certain premises judged to bereasonable.

Noneintended

be

to

of

these

guarantees

forward-looking
offuturestatements

performance.

are

Variousfactors may cause actual performance to differ significantly
from forecasts.

URL： https://www.mgc.co.jp/eng/