Note: This document has been translated from the Japanese original for reference purposes only. In the event of any
discrepancy between this translated document and the Japanese original, the original shall prevail.

May 12, 2023

Summary of Consolidated Financial Results for the Fiscal Year Ended
March 31, 2023 (Under Japanese GAAP)
Company name:
Mitsubishi Gas Chemical Company, Inc.
Listing:
Tokyo Stock Exchange
Securities code:
4182
URL:
https://www.mgc.co.jp/eng/
Representative:
Masashi Fujii, Representative Director, President
Inquiries:
Satoshi Takizawa, General Manager, Investor Relations Department
TEL:+81-3-3283-5041
Scheduled date of ordinary general meeting of shareholders:June 27, 2023
Scheduled date to commence dividend payments:
June 9, 2023
Scheduled date to file annual securities report:
June 27, 2023
(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 toMarch 31, 2023)(1) Summary of consolidated income statement
Net sales
Fiscal year ended
March 31, 2023
March 31, 2022
Note:

(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen% Millions of yen

781,211705,656

10.7
18.5% Millions of yen

49,03055,360(11.4)
24.4

Comprehensive income March 31, 2023
March 31, 2022

Fiscal year ended
March 31, 2023
March 31, 2022

Profit attributable toowners of parent

Ordinary profit

69,764
74,152¥69,751 million¥66,232 million% Millions of yen

(5.9)
47.6

49,08548,295

%

1.6
33.9

[5.3%][24.7%]

Basic earnings per
share

Diluted earnings
per share

Return on equity

Ordinary
profit/total assets

Yen

Yen

%

%

%

8.3
8.8

7.1
8.4

6.3
7.8

239.08232.15––

Operatingprofit/net sales

Reference: Equity in earnings of entities accounted for using equity method
March 31, 2023
¥17,546 million
March 31, 2022
¥14,883 million(2) Consolidated financial position
Total assets
As ofMarch 31, 2023
March 31, 2022
Reference:

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%%

1,029,317
928,651

671,249
630,88759.0
61.2

2,970.07
2,733.86

EquityAs of March 31, 2023
As of March 31, 2022

¥607,613 million¥568,766 million- 1 -(3) Consolidated cash flows
Cash flow fromoperating activities
Fiscal year ended
March 31, 2023
March 31, 2022

Cash flow frominvesting activities

Cash flow fromfinancing activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen

55,22252,090(64,071)(64,954)

7,996(3,666)

101,185
92,257

2. Dividends
Annual dividendFirst
quarterend

Secondquarterend

Yen

Fiscal year ended
March 31, 2022
Fiscal year ended
March 31, 2023
Fiscal year
ending March 31,
2024 (Forecast)

Yen

Third
quarterend

Fiscalyear-end

Yen

Total dividend
Dividend
payment
payout ratio(total)(consolidated)

Total

Dividend to
net assets
ratio(consolidated)

Yen

Yen

Millions of
yen

%

%

–

45.00

–

35.00

80.00

16,642

34.5

3.0

–

40.00

–

40.00

80.00

15,464

33.5

2.8

–

40.00

–

40.00

80.00

29.2

Breakdown of interim dividend for the fiscal year ended March 31, 2022:
Ordinary dividend: 35.00 yen
Commemorative dividend: 10.00 yen

3. Consolidated business forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023 toMarch 31, 2024)(Percentages indicate year-on-year changes.)
Net sales

Six months ending
September 30,
2023 (cumulative)
Fiscal year ending
March 31, 2024

Operating profit

Millions ofyen%

390,000(1.2)

850,000

8.8

Millions ofyenProfit attributable toowners of parent

Ordinary profit%

Millions of
yen

%

Yen

22,000 (34.4)

24,000 (51.9)

33,000(3.7)

161.3154,00058,000 (16.9)

56,00014.1

273.73

%

10.1

- 2 -

Millions of
yen

Basic
earnings pershare* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates, and restatement(i) Changes in accounting policies due to revisions to accounting standards and other regulations: Yes(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of issued shares (common stock)(i) Number of issued shares at term end (including treasury stock)
As of March 31, 2023

222,239,199

As of March 31, 2022

225,739,199(ii) Number of shares of treasury stock at term-end
As of March 31, 2023

17,660,740

As of March 31, 2022

17,693,673(iii) Average number of outstanding shares (cumulative from the beginning of the fiscal year)
For the year ended March 31, 2023

205,305,427

For the year ended March 31, 2022

208,036,405[Reference] Outline of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2023 (from April 1, 2022 toMarch 31, 2023)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
March 31, 2023
March 31, 2022

Operating profit

Millions of yen% Millions of yen

439,525
427,927

2.7
24.1

Basic earnings per
share
Fiscal year ended
March 31, 2023
March 31, 2022

Ordinary profit% Millions of yen

19,14432,364(40.8)
69.4

40,528
46,116

Profit% Millions of yen(12.1)
74.4

37,37135,812

%

4.4
49.4

Diluted earnings per
share

Yen

Yen

182.03172.15––(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2023
March 31, 2022
Reference:

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%%

584,435
529,631331,922
323,00256.8
61.0

1,622.47
1,552.56

EquityAs of March 31, 2023
As of March 31, 2022

¥331,922 million¥323,002 million- 3 -2. Non-consolidated business forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023
to March 31, 2024)
Net sales

Fiscal year ending
March 31, 2024

(Percentages indicate year-on-year changes.)
Basic
Ordinary profit
Profitearnings per
share

Operating profit

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

430,000(2.2)

22,00014.9

40,000(1.3)

37,000(1.0)

180.86* These financial statements are exempt from audit procedure.
* Proper use of earnings forecasts, and other special matters(Caution concerning forward-looking statements)
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable.
Consequently, any statements herein do not constitute assurances regarding actual results by theCompany. A number of factors could cause actual results to differ materially from expectations.
For details on the financial forecast, please refer to page 20.
(How to access supplementary material on financial results)
The supplementary material on financial results is disclosed on the same day as this financial results
report, and it is made available on the Company’s website.

- 4 -Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, andcontract assets
Securities
Merchandise and finished goods
Work in process
Raw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles,net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Leased assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets-5-

As of March 31, 2023

102,049

108,378

176,556

176,626

6
78,542
19,72957,39819,381△1,453452,21093
89,367
22,331
66,444
20,775△767
483,249

254,276△154,692
99,584523,244△442,844

265,074△162,931
102,143
550,543△462,653

80,40087,89042,8893,622△1,4842,138
42,38555,361△46,375
8,986
276,384

43,843
6,603△2,224
4,379
66,46757,618△48,576
9,042
313,767

4,811
4
2,992
3,482
11,290

4,425
34
3,479
4,041
11,980171,446
5,159
3,493
1,226
8,047
△607
188,765
476,440
928,651

200,101
8,184
3,863
1,387
8,706
△1,922
220,320
546,068
1,029,317

(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Accrued expenses
Lease liabilities
Income taxes payable
Provision for bonuses
Provision for bonuses for directors (andother officers)
Provision for environmental measures
Provision for business restructuring
Provision for loss on business withdrawal
Other provisions
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Provision for retirement benefits for
directors (and other officers)
Provision for environmental measures
Provision for business restructuring
Provision for loss on business of
subsidiaries and associates
Other provisions
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets-6-

As of March 31, 2023

92,38738,925
19,187565
11,997
6,144

88,342
47,913
23,413
1,074
5,274
6,220

47

32

3
190
103
－
118
29,298
198,969

－
421
－
40
39
47,670220,442

20,00046,621
1,537
11,45820,00074,6803,276
12,514

285

279

23
2,305

23
2,499

188

59

481
6,252
5,216
4,422
98,794
297,763

521
4,453
5,272
14,044
137,625
358,068

41,97034,339492,455△21,525547,239

41,97034,293
521,426△23,838
573,852

11,376

8,950

△326
9,861
614

110
22,894
1,805

21,52633,76062,121
630,887928,651

63,636671,249
1,029,317

2. Consolidated Statements of Income(Millions of yen)
Fiscal year ended
March 31, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted forusing equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Personnel expenses for seconded employees
Loss on disposal of non-current assets
Rental expenses
Other
Total non-operating expenses
Ordinary profit-7-

Fiscal year ended
March 31, 2023

705,656
543,070
162,586
107,225
55,360781,211
613,031
168,179
119,149
49,030

346
3,218

1,157
3,021

14,883

17,546

5,987
24,435

5,479
27,205

858
1,361
1,580
818
1,024
5,644
74,152

1,745
1,852
858
735
1,279
6,470
69,764

(Millions of yen)
Fiscal year ended
March 31, 2022
Extraordinary income
Gain on sale of investment securities
Compensation income
Gain on recovery of money transfer scam at
subsidiary
Insurance claim income
Reversal of provision for loss on businessof subsidiaries and associates
Gain on step acquisitions
Total extraordinary income
Extraordinary losses
Impairment losses
Loss on disposal of non-current assets
Provision for business restructuring
Loss on valuation of shares of subsidiaries
and associates
Provision of allowance for doubtful accounts
Expenses for land maintenance
Loss on valuation of investment securities
loss compensation
Provision for loss on business of
subsidiaries and associates
Fire Loss
Loss on change in retirement benefit plan at
subsidiary
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controllinginterests
Profit attributable to owners of parent-8-

Fiscal year ended
March 31, 2023

3,011
－

※１ 6493,732－※２ 215※３ 2,616※３ 151－128※４ 796

6,424

－
4,876

※５ 7,059※５ 1,128※６ 252※６ 872※７ 1,733※７ 870－846※８ 960※８ 410

－
286
228

275
－
－

※９ 188－※10 128－

109－

10,947
69,62816,542555
17,09852,5304,402
70,23913,831
1,619
15,45054,788

4,235

5,703

48,29549,085

(Millions of yen)
Fiscal year ended
March 31, 2022
ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests-9-

Fiscal year ended
March 31, 2023

52,53054,788△3,118△2,430

△14
9,330

51
9,408

1,032

901

6,471

7,033

13,701
66,232

14,96369,75160,08361,319

6,149

8,432

3. Consolidated Statement of Changes in Net Assets
FY2021(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Capital surplus

41,97034,301Retained earnings
459,790

Treasury shares△21,562△50
41,97034,301

459,739

Total shareholders'equity514,499△50△21,562

514,448

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in scope of
consolidation
Change in scope ofequity method
Change in ownershipinterest of parent due
to transactions with
non-controllinginterests
Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period△16,642△16,642

48,29548,295

39

△5

△5

42

81

441

441

620

620

△0

△0

－
－

38

32,71536

32,791

41,97034,339492,455△21,525547,239- 10 -

Accumulated other comprehensive income

Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

14,419△618

Foreign Remeasureme
Totalcurrency
nts ofaccumulatetranslatio
definedd othernbenefitcomprehens
adjustmentplans
ive income△3,542

△494

9,765

Noncontrollinginterests

Total net
assets57,146

581,411△50

14,419△618△3,542

△494

9,765

57,146581,360

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesChange in scope of
consolidation
Change in scope ofequity method
Change in ownershipinterest of parent due
to transactions with
non-controllinginterests
Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period△16,642
48,295
△5
81
441
620

△0

△3,043291

13,404

1,108

11,761

4,974

16,736△3,043291

13,404

1,108

11,761

4,974

49,527

11,376

△326

9,861

614

21,526

62,121

630,887- 11 -

FY2022(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCapital surplus

41,970Retained earnings

34,339492,455

Total shareholders'equityTreasury shares△21,525547,239

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation of treasury
sharesTransfer from retained
earnings to capitalsurplus
Change in scope of
consolidation
Change in ownershipinterest of parent due
to transactions with
non-controllinginterests
Net changes in items
other than shareholders'equityTotal changes during
period△15,464△15,464

49,08549,085△7,083△7,08323

47

70△4,724

4,724

△0

4,647

△4,647

－

△1

△1

7

7

－

Balance at end of period－△46

28,971△2,312

26,612

41,97034,293

521,426△23,838

573,852

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges11,376△326

Foreign Remeasureme
Totalcurrency
nts ofaccumulatetranslatio
definedd othernbenefitcomprehens
adjustmentplans
ive income
9,861

614

21,526

Noncontrollinginterests

Total net
assets62,121

630,887

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation of treasury
sharesTransfer from retained
earnings to capitalsurplus
Change in scope of
consolidation
Change in ownershipinterest of parent due
to transactions with
non-controllinginterests
Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period△15,464
49,085△7,083
70
△0
－
△1

7

△2,426436

13,032

1,191

12,234

1,514

13,748△2,426436

13,032

1,191

12,234

1,514

40,3618,950

110

22,894

1,805

33,76063,636671,249- 12 -

4. Consolidated Statement of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2022
Cash flows from operating activities
Profit before income taxes
Depreciation
Loss (gain) on disposal of non-current
assetsAmortization of goodwill
Share of loss (profit) of entities accounted
for using equity method
Impairment losses
Insurance claim income
Increase (decrease) in allowance for
doubtful accounts
Increase (decrease) in retirement benefit
liability
Interest and dividend income
Interest expenses
Loss (gain) on sale of short-term and longterm investment securities
Loss (gain) on valuation of short-term andlong-term investment securities
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption
taxes
Increase (decrease) in provision for
retirement benefits for directors (and otherofficers)
Provision for business structure improvement
Other, net
SubtotalInterest and dividends received
Dividends received from entities accounted
for using equity method
Interest paid
Income taxes paid
Proceeds from insurance income
Net cash provided by (used in) operating
activities- 13 -

Fiscal year ended
March 31, 2023

69,62831,99970,23933,565

1,630

1,653

396

405

△14,883△17,546

7,059△2,723

1,128
△163

1,027

531

140

△851

△3,564858△4,1791,745△3,041△3,980332

4△9,273△28,992
9,792

2,412
△19,711△6,868

246

△192

49

△2

1,733
△9,91952,497
3,526

870△1,101
57,957
4,361

4,439

15,082△818△10,386
2,831△1,654△20,686
163

52,09055,222

(Millions of yen)
Fiscal year ended
March 31, 2022
Cash flows from investing activities
Purchase of non-current assets
Proceeds from sale of non-current assets
Purchase of investment securities
Proceeds from sale of investment securities
Loan advances
Proceeds from collection of loans receivable
Purchase of shares of subsidiaries resulting
in change in scope of consolidation
Other, net
Net cash provided by (used in) investing
activities
Cash flows from financing activities
Net increase (decrease) in short-termborrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Proceeds from sale of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Purchase of shares of subsidiaries not
resulting in change in scope of
consolidation
Other, net
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of
periodIncrease in cash and cash equivalents resulting
from inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period- 14 -

Fiscal year ended
March 31, 2023

△56,347463△11,849
5,724
△824
101

△62,721202△1,795
5,739△2,354469△2,668－445△3,612△64,954△64,071316△7,062

16,641△10,641△5
0△16,642△2,55150,289△7,965△7,083
0△15,464△4,695－△2,195

9,216

2,173

△3,666

7,996

6,502

7,737

△10,028

6,885

91,07592,257

11,2102,041

92,257101,185

5. Segment Information
FY2021

Basic Chemicals
Business Sector

Specialty
Chemicals
Business Sector(Millions of yen)
Per
Reconcilingconsolidated
items
financialstatements

Other

Sales
Revenues from external

419,959

285,419277△0705,656

Transactions withother segments

5,383

98

16

△5,499－Net sales

425,343

285,518

294△5,499705,656

Ordinary profit (loss)

30,08345,43322△1,387

74,152

Assets481,866

405,824

26,971

13,988928,651

17,165

13,08318

1,732

31,999Amortization of goodwill

393

－

3

－

396

Interest income

268

140

0

△62

346

Interest expenses

411

687

0

△240

858

5,136

9,747

－

0

14,883

Investments in entities
accounted for using

86,14939,434－△40

125,543

equity method
Increase in property,
plant and equipment and19,25632,623

1

2,911

54,793customers

Other items
Depreciation

Equity in earnings(losses) of affiliates

intangible assets- 15 -

FY2022

Basic Chemicals
Business Sector

Specialty
Chemicals
Business Sector(Millions of yen)
Per
Reconcilingconsolidated
items
financialstatements

Other

Sales
Revenues from externalcustomers

472,167

308,904

138－

781,211

6,806

129

7

△6,943－

Net sales

478,974

309,034

145△6,943

781,211

Ordinary profit (loss)

30,55838,745△13

474

69,764

Assets531,556

457,916

26,447

13,396

1,029,317

17,971

13,77417

1,802

33,565

Amortization of goodwill

405

－

－

－

405

Interest income

658

531

0

△33

1,157

Interest expenses

501

1,593

0

△350

1,745

11,418

6,137

－

△8

17,546

95,37056,116－△31

151,455

32,051

28,6581

3,940

64,650Transactions withother segments

Other items
Depreciation

Equity in earnings(losses) of affiliates
Investments in entities
accounted for using
equity method
Increase in property,
plant and equipment andintangible assets- 16 -

Qualitative Information
Consolidated Business Results for This Period
Overview of Results(Billions of yen)

FY2021

FY2022

ChangeNet sales

705.6

781.2

75.5

Operating profit

55.3

49.0

(6.3)

Equity in earnings of affiliates

14.8

17.5

2.6

Ordinary profit

74.1

69.7

(4.3)

Profit attributable to owners of parent

48.2

49.0

0.7

During the fiscal year ended March 31, 2023 (April 1, 2022 – March 31, 2023), the global economy was
supported by the gradual normalization of socio-economic activities in step with the relaxation of movement
restrictions aimed at preventing the spread of COVID-19 infection. However, the prolongation of Russia’s invasionof Ukraine led to surges in prices of raw materials, fuels and other items. Around the world, countries have thus
been stricken with steep inflation, prompting the financial authorities of the United States, EU members and othernations to continue with monetary tightening. This policy trend, in turn, resulted in a looming sense of vigilanceagainst major recessions and negatively affected capital expenditure and personal consumption. Because of theseand other factors, the economic situation remained unstable.
Although the MGC Group has benefitted from the depreciation of the yen, the business environment surrounding
it remained harsh under the influence of surges in raw material and fuel costs, slower-than-expected recovery indemand in China, declining demand in the United States and Europe in the face of anxiety over economic
deceleration, and other factors. Furthermore, sales of PCs, smartphones and other electronic devices have dropped
as demand for these items ceased to be strong due to the end of temporary surge seen during the pandemic, with
inflation now leading to sluggish consumption. In addition, there has been notable stagnation in demand forsemiconductor-related and other products in the second half of the fiscal year due mainly to the growing volume of
supply chain inventories.
Against this backdrop, the MGC Group has promoted a medium-term management plan launched in April 2021.
In line with this plan, the Group aims to shift to a profit structure resilient to changes in the business environment.
To this end, the Group is striving to:•“Further strengthen competitively advantageous (“differentiating”) businesses,”•“Accelerate creation and development of new businesses,” and•“Reevaluate and rebuild unprofitable businesses.”
These efforts will help push ahead with business portfolio reforms.
In addition, the Group is countering surges in raw material and fuel prices and transportation costs by revisingsales prices upward to align with an overall increase in costs. Through these and other initiatives, the Group is
endeavoring to maintain and enhance its earnings power.

- 17 -

As a result, the MGC Group’s net sales increased, despite lower sales of electronic materials and other offerings,
due mainly to the impact of foreign exchange fluctuations and upwardly revised sales prices aligned with higher
raw material and fuel prices and growing transportation costs, along with the recent inclusion of a South Koreabased polyacetal sales company into the scope of consolidation.
However, operating profit decreased, despite the depreciation of the yen, robust polyacetal sales and otherpositive factors, due primarily to surges in raw material and fuel prices and transportation costs, along with lower
sales of electronic materials and other offerings as well as growth in repair costs and R&D expenses.
In the face of downturns in methanol market prices, ordinary profit decreased despite an increase in equity inearnings of affiliates in light of such positive factors as the reversal of deferred tax liabilities at an overseas
methanol producing company. This decrease was mainly attributable to a decline in equity in earnings of affiliates
related to engineering plastics and the decrease in operating profit.
Operating results by segment are as described below.

Results by Business Segment
Basic Chemicals(Billions of yen)

FY2021

FY2022

ChangeNet sales

419.9

472.1

52.2

Operating profit

25.7

18.8

(6.9)

Ordinary profit

30.0

30.5

0.4

The methanol business saw increases in both net sales and earnings thanks to the depreciation of the yen, an
increase in equity in earnings of affiliates and other positive factors, despite somewhat lower market prices
compared with the previous fiscal year.
Methanol and ammonia-based chemicals posted a decrease in earnings due mainly to deterioration in neopentyl
glycol market prices and an increase in repair costs, despite progress in profitability adjustments offsetting thenegative impact of higher raw material and fuel prices.
High-performance products posted a decrease in earnings due mainly to the lower sales volume of metaxylenediamine, despite the higher sales volume of aromatic aldehydes.
Xylene separators and derivatives saw a decrease in earnings due to rises in raw material and fuel prices, andresulting deterioration in the profitability of purified isophthalic acid (PIA).
Foamed plastics posted a decrease in earnings due mainly to rises in raw material and fuel prices outpacing thetiming of product price revisions.

- 18 -

Specialty Chemicals(Billions of yen)

FY2021

FY2022

ChangeNet sales

285.4

308.9

23.4

Operating profit

33.6

32.6

(0.9)

Ordinary profit

45.4

38.7

(6.6)

Inorganic chemicals posted a decrease in earnings despite progress in the upward revision of sales prices to alignwith rises in transportation costs and prices for raw materials and fuel, with sluggish semiconductor demandleading to the lower sales volume of chemicals for use in semiconductor manufacturing in some market regions.
Engineering plastics saw increases in net sales and earnings, despite lower sales volumes of polycarbonates andpolycarbonate sheet films, thanks to constantly robust sales of polyacetal as well as the inclusion of a South Koreabased polyacetal sales company into the scope of consolidation.
Optical materials posted a decrease in earnings amid stagnant demand for smartphones, a primary application of
optical polymers, despite the disappearance of the negative impact of inventory adjustments carried out by
customers in the prior fiscal year.
Electronic materials saw decreases in net sales and earnings. This reflected such factors as declining demand forgeneral-purpose materials for use in PC-related devices and home appliances, which constitute a part of BT
materials for IC plastic packaging, the core product category for electronic materials. Other negative factors
included stagnation in demand for highly functional materials for use in smartphones and memory devices.
Earnings from oxygen absorbers such as AGELESSTM declined due mainly to rises in raw material prices andtransportation costs.

- 19 -

Outlook for FY2022
In the fiscal year ending March 31, 2024, the outlook for the world economy is expected to remain unclear due tothe prolongation of Russia’s invasion of Ukraine and the global surge in raw material and fuel prices. In addition,monetary tightening undertaken by financial authorities in the United States, EU members and other countries
resulted in a looming sense of anxiety over possible financial turmoil, while U.S.-China tensions are now leading to
growing geopolitical risks. The containment of the COVID-19 pandemic in countries around the globe, however,allowed room for positive expectations in light of the full resumption of economic activities in China andelsewhere.
Under these circumstances, the MGC Group anticipates that overall sales in the first half of the current fiscal
year will remain stagnant due to the current sluggishness of consumption and capital expenditure. However, theGroup expects that in the second half, demand for electronic material and other offerings will gradually recover,reflecting recovery in demand for products to be shipped to China as well as improvement in the status of supply
chain inventories in the semiconductor sector.
For the fiscal year ending March 31, 2024, the final year of the current medium-term management plan, theGroup will continue to take a proactive stance toward growth investment in “differentiating” businesses and otheroperations, with the aim of developing a business portfolio that is resilient against changes in the operating
environment. At the same time, the Group will focus on accelerating R&D aimed at creating new businesses,
strengthening its capabilities for the social implementation of carbon neutrality solutions, and other endeavors.
Taking these factors into account, the Group expects consolidated net sales for the fiscal year ending March 31,
2024 to surpass operating results for the fiscal year ended March 31, 2023. This projection is due in part to the
expected inclusion of Mitsubishi Engineering-Plastics Corporation into the scope of consolidation.
Similarly, operating profit is likely to exceed operating results for the fiscal year ended March 31, 2023, despite
such negative factors as weaker demand for polyacetal, the ongoing harshness of the polycarbonate market in terms
of profitability, and higher depreciation costs and R&D expenses, thanks mainly to recovery in the sales volume ofelectronic materials and expected decrease in repair costs.
On the other hand, ordinary profit is expected to fall short of year prior results, due to the absence of nonoperating income recorded in the fiscal year ended March 31, 2023 through the reversal of deferred tax liabilities at
an overseas methanol producing company. This projection is also based on the expected inclusion of Mitsubishi
Engineering-Plastics Corporation into the scope of consolidation in the fiscal year ending March 31, 2024, which
will, in turn, decrease equity in earnings of affiliates. Despite this, net profit attributable to owners of parent is
expected to surpass results for the fiscal year ended March 31, 2023 due primarily to the recording of gain on step
acquisitions in connection with the inclusion of Mitsubishi Engineering-Plastics Corporation into the scope of
consolidation.
Taking these factors into account, the Group’s consolidated operating results forecasts for the fiscal year ending
March 31, 2024, include net sales of ¥850.0 billion, operating profit of ¥54.0 billion, ordinary profit of ¥58.0
billion, and net profit attributable to owners of parent of ¥56.0 billion. The above forecasts assume exchange ratesof ¥130=$1 and ¥140=€1.
(End)- 20 -