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 11, 2021

Summary of Consolidated Financial Results for the Fiscal Year Ended
March 31, 2021 (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:
Nobuki Nishikawa, General Manager, CSR & IR DivisionTEL:+81-3-3283-5041
Scheduled date of ordinary general meeting of shareholders:June 25, 2021
Scheduled date to commence dividend payments:
June 7, 2021
Scheduled date to file annual securities report:
June 25, 2021
(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2021 (from April 1, 2020 toMarch 31, 2021)(1) Summary of consolidated income statement
Net sales
Fiscal year ended
March 31, 2021
March 31, 2020

Millions of yen

Operating profit% Millions of yen

595,718
613,344

Note: Comprehensive income(Percentages indicate year-on-year changes.)

(2.9)
(5.5)

% Millions of yen

44,51034,26029.9(17.2)March 31, 2021
March 31, 2020

Basic earnings per
share
Fiscal year ended
March 31, 2021
March 31, 2020

Yen

173.41100.5050,24031,116% Millions of yen

61.5(55.0)¥53,101 million¥13,988 million

Diluted earnings
per share

Profit attributable toowners of parent

Ordinary profit

Return on equity

Yen

70.5
(61.5)[279.6%][(74.2)%]

Ordinary
profit/total assets%––

36,07021,158%Operatingprofit/net sales

%

7.1
4.3

6.2
3.9

%

7.5
5.6

Reference: Equity in earnings of entities accounted for using equity method
March 31, 2021
¥5,162 million
March 31, 2020¥(1,282) million(2) Consolidated financial position
Total assets
As ofMarch 31, 2021
March 31, 2020
Reference:

EquityMarch 31, 2021
March 31, 2020

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

836,364
771,733

581,411548,14162.7
63.8

2,520.34
2,368.11¥524,264 million¥492,521 million-1-(3) Consolidated cash flows
Cash flow fromoperating activities
Fiscal year ended
March 31, 2021
March 31, 2020

Cash flow frominvesting activities

Cash flow fromfinancing activities

Millions of yen

Millions of yen

55,464
74,234(40,370)(33,922)

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

5,154(49,563)

91,07570,043

2. Dividends
Annual dividend

Fiscal year ended
March 31, 2020
March 31, 2021
Fiscal year
ending March 31,
2022 (Forecast)First
quarterend

Secondquarterend

Third
quarterend

Fiscalyear-end

Yen

Yen

Yen

Yen

Total

Dividend to
Dividend
net assets
payout ratio
ratio(consolidated(consolidated
)
)

Total
dividend
payment(total)Yen Millions of yen

–
–

35.00
35.00

–
–

35.00
35.00

70.00
70.00

–

35.00

–

35.00

70.00

14,861
14,559

%

%

69.7
40.4

3.0
2.9

35.5

3. Consolidated business forecasts for the fiscal year ending March 31, 2022 (from April 1, 2021 toMarch 31, 2022)
Net sales

Operating profit

Millions ofyen

Six months ending
September 30,
2021 (cumulative)
Fiscal year ending
March 31, 2022

(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
share

%

Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

310,000–

22,000–26,000–19,000–91.34

640,000–

48,000–56,000–41,000–197.10Note: From the start of the fiscal year ending March 31, 2022, the Company will be applying “Accounting Standard for
Revenue Recognition” (ASBJ Statement No. 29) and its accompanying guidance. Accordingly, the amounts for the
consolidated business forecasts for the fiscal year ending March 31, 2022 reflect the aforementioned application, and yearon-year changes are not presented.

-2-

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): Yes
Excluded: 2 companies (Company names: MGC MONTNEY HOLDINGS LTD., Tokyo Shokai, Ltd.)(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:None(ii) Changes in accounting policies due to other reasons: None(iii) Changes in accounting estimates: None(iv) Restatement: None
(3) Number of shares outstanding (common stock)(i) Number of shares outstanding at term end (including treasury stock)
As of March 31, 2021

225,739,199

As of March 31, 2020

225,739,199(ii) Number of shares of treasury stock at term-end
As of March 31, 2021

17,726,057

As of March 31, 2020

17,758,765(iii) Average number of shares
For the year ended March 31, 2021

208,004,306

For the year ended March 31, 2020

210,529,901[Reference] Outline of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2021 (from April 1, 2020 toMarch 31, 2021)(1) Non-consolidated operating results
Net sales
Fiscal year ended
March 31, 2021
March 31, 2020

Operating profit

Millions of yen% Millions of yen

344,898
351,348

(1.8)
(6.3)

Basic earnings per
share
Fiscal year ended
March 31, 2021
March 31, 2020

(Percentages indicate year-on-year changes.)
Ordinary profit% Millions of yen

19,101
17,268

10.6(25.3)

26,44330,066

Profit% Millions of yen(12.1)(27.3)

23,96629,332%(18.3)(15.4)

Diluted earnings per
share

Yen

Yen

115.22139.33––(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2021
March 31, 2020
Reference:

EquityMarch 31, 2021
March 31, 2020

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

469,634
425,713306,478
290,95565.3
68.3

1,473.36
1,398.96¥306,478 million¥290,955 million-3-2. Non-consolidated business forecasts for the fiscal year ending March 31, 2022 (from April 1, 2021
to March 31, 2022)(Percentages indicate year-on-year changes.)
Net sales

Operating profit

Millions ofyen
Fiscal year ending
March 31, 2022

380,000%–

Millions ofyen

25,000Ordinary profit%–

Millions ofyen

34,000%–Basicearnings per
share

ProfitMillions ofyen

28,000%–Yen

134.61

Note: From the start of the fiscal year ending March 31, 2022, the Company will be applying “Accounting Standard for
Revenue Recognition” (ASBJ Statement No. 29) and its accompanying guidance. Accordingly, the amounts for the nonconsolidated business forecasts for the fiscal year ending March 31, 2022 reflect the aforementioned application, and yearon-year changes are not presented.

* These financial statements are exempt from audit procedure.
* Proper use of earnings forecasts, and other special matters(Caution concerning forward-looking statements)
Forecasts, etc., recorded in this document contain forward-looking statements that are based on
management’s estimates, assumptions and projections at the time of publication. A number of factors could
cause actual results to differ materially from expectations.
For details on the financial forecast, please refer to page 23.

-4-

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5. Segment Information
FY2019(Millions of yen)
Per
Reconcilingconsolidated
items
financialstatements

Basic
Chemicals
Business
SectorSpecialty
Chemicals
Business
SectorRevenues fromexternal customers

357,333

255,112898－

613,344

Transactions withother segments

6,503

830

123

△7,456－

Net sales

363,836

255,943

1,021△7,456613,344

Ordinary profit (loss)

4,756

28,1788△1,827

31,116396,905

310,204

34,56930,053771,733

15,941

12,57819

1,052

29,591

379

－

1

－

380

Interest income

278

263

9

14

565

Interest expenses

822

635

5

△494

968

△4,924

3,701

△60

－

△1,282

65,12230,540－△149

95,51322,316

17,312

1

2,759

42,389

Other

Sales

AssetsOther items
Depreciation
Amortization of
goodwill

Equity in earnings(losses) of affiliates
Investments inentities accounted forusing equity method
Increase in property,
plant and equipment
and intangible assets

－

16 －

FY2020(Millions of yen)
Per
Reconcilingconsolidated
items
financialstatements

Basic
Chemicals
Business
SectorSpecialty
Chemicals
Business
SectorRevenues fromexternal customers

315,034

267,457

13,226－595,718

Transactions withother segments

7,767

368

1,965

△10,101－

Net sales

322,801

267,825

15,192△10,101

595,718

Ordinary profit (loss)

11,001

37,552

3,297△1,61050,240Assets427,468

355,794

40,94012,161

836,364

16,371

13,090189

1,034

30,686

368

－

3

－

371

Interest income

226

190

6

△61

362

Interest expenses

551

581

2

△335

800

1,972

3,180

－

9

5,162

73,53530,831－△149

104,217

19,482

18,619637

1,543

40,282

Other

Sales

Other items
Depreciation
Amortization of
goodwill

Equity in earnings(losses) of affiliates
Investments inentities accounted forusing equity method
Increase in property,
plant and equipment
and intangible assets

－

17 －

Segment Information(Billions of yen, rounded down)
FY 2021First half
Forecast

FY 2021
Full Year
Forecast(17.6)

310.0

640.0

322.8

(41.0)

181.2

377.4

255.9

267.8

11.8

131.3

267.6

(6.4)

5.0

11.5

(2.5)

(5.1)

34.2

44.5

10.2

22.0

48.0

Basic Chemicals

11.2

9.6

(1.6)

8.7

17.9

Specialty Chemicals

25.5

34.8

9.2

15.5

34.2

Other and Adjustment

(2.5)

0.0

2.6

(2.2)

(4.2)

Non-operating profit

(3.1)

5.7

8.8

4.0

8.0

Ordinary profit

FY2019FY2020

613.3

595.7

Basic Chemicals

363.8

Specialty Chemicals
Other and Adjustment

Net sales

Operating profit

Change

31.1

50.2

19.1

26.0

56.0

Basic Chemicals

4.7

11.0

6.2

11.3

23.8

Specialty Chemicals

28.1

37.5

9.3

16.5

36.0

Other and Adjustment

(1.8)

1.6

3.5

(1.9)

(3.8)

Extoraordinary income and loss, net

3.2

(1.2)

(4.5)

0.0

(1.0)

Income before income taxes, etc.

34.3

48.9

14.6

26.0

55.0

Profit attributable to owners of parent

21.1

36.0

14.9

19.0

41.0

FY2019FY2020ChangeFY 2021First half
Forecast

FY 2021
Full Year
Forecast

613.3

595.7

(17.6)

310.0

640.0

Natural Gas Chemicals

163.7

153.5

(10.2)

90.4

189.3

Aromatic Chemicals

201.1

173.4

(27.6)

92.3

191.2

Specialty Chemicals
Information andAdvanced Materials
Other and Adjustment

202.0

208.0

6.0

102.7

208.6

54.8

61.7

6.8

28.5

59.1

䛆reference䛇*Net sales

(8.4)

(1.0)

7.4

(4.1)

(8.4)

34.2

44.5

10.2

22.0

48.0

Natural Gas Chemicals

0.1

(0.6)

(0.7)

1.6

4.3

Aromatic Chemicals

11.1

10.2

(0.9)

7.0

13.5

Specialty Chemicals
Information andAdvanced Materials
Other and Adjustment

19.9

22.7

2.8

9.3

22.1

5.6

12.0

6.4

6.1

12.1

(2.5)

0.1

2.7

(2.2)

(4.1)

Non-operating profit

(3.1)

5.7

8.8

4.0

8.0

Ordinary profit

31.1

50.2

19.1

26.0

56.0

Natural Gas Chemicals

(5.7)

0.9

6.7

4.2

10.4

Aromatic Chemicals

10.4

10.0

(0.4)

7.1

13.3

Specialty Chemicals
Information andAdvanced Materials
Other and Adjustment

22.3

24.9

2.6

10.0

23.6

5.8

12.5

6.7

6.4

12.4

(1.8)

1.6

3.5

(1.8)

(3.8)

Operating profit*The figures are reference figures that have been simply rearranged for comparison
䚷with the new segment.

㻝㻤Other Information 1
Investments(Billions of yen)

Full year

30.9

39.2

42.3

FY2021
Forecast
40.2
70.0

1H

13.9

18.6

22.4

15.8

37.0

Depreciation &amortization(Billions of yen)

Full year

27.0

27.4

29.5

30.6

33.0

1H

13.1

13.5

14.4

15.1

16.0

R&D expenditures(Billions of yen)

Full year

18.9

18.6

19.6

19.9

22.5

FY2017

Number of Staff

FY2018FY2019FY2020

1H

9.5

9.1

9.4

9.8

11.5

Year-end

8,009

8,276

8,954

8,998

10,033

ROA

10.6%

8.7%

3.9%

6.2%

6.6%

ROE

13.6%

11.3%

4.3%

7.1%

7.7%

ROIC
(Ordinary income/invested capital)

13.2%

10.9%

4.9%

7.7%

8.1%

Other Information 2
FY2016
Result

FY2017
Result

FY2019Result

FY2018ResultFY2020ResultFY2021
Forecast

First half Second half First half Second half First half Second half First half Second half First half Second half Full year
Exchange Rate
(JPY/USD, Average)

105

112

111

111

110

112

109

109

107

105

105

Exchange Rate
(JPY/EUR, Average)

118

119

126

133

130

127

121

120

121

126

130

crude oil (Dubai)(USD/BBL)

43

51

50

62

73

65

64

56

37

52

65

Methanol(USD/MT, Asian
average spot price)

230

327

296

381

408

335

277

245

194

319

320

Mixed Xylene(USD/MT)

660

680

650

725

845

730

705

640

420

560

690

Bisphenol A(USD/MT)*

1,000
㹼1,2001,000
㹼1,4001,100
㹼1,3001,200
㹼1,7001,600
㹼1,9001,200
㹼1,8001,000
㹼1,4501,050
㹼1,350900
㹼1,4501,400
㹼3,3001,200
㹼3,800Polycarbonate(USD/MT)*

2,200
㹼2,5002,400
㹼2,8002,500
㹼2,9002,900
㹼3,9002,700
㹼3,8002,100
㹼2,8001,900
㹼2,2501,650
㹼2,0001,500
㹼2,1502,100
㹼4,0001,900
㹼4,300*Describe the minimum and maximum values during the period㻝㻥Qualitative Information
Consolidated Business Results for This Period
Overview of Results          (Billions of yen)

FY2019FY2020ChangeNet sales

613.3

595.7

(17.6)

Operating income

34.2

44.5

10.2

Ordinary income

31.1

50.2

19.1

Net income attributable to owners of the parent

21.1

36.0

14.9

During the fiscal year ended March 2021 (April 1, 2020 – March 31, 2021), the world economy remained harsh
due to the global fallout from the novel coronavirus pandemic. Although signs of recovery emerged thanks tonational stimulus packages, progress in vaccination and other positive factors, the pandemic has yet to be contained,causing the outlook for the future to remain unclear.
Against this backdrop, the MGC Group nevertheless saw consistently strong demand for its semiconductor-related
products and optical polymers. On the other hand, demand for such offerings as automotive-related products fell in
the first half due to the novel coronavirus pandemic, while, at the same time, market prices remained sluggish forgeneral-purpose products. However, the second half brought overall recovery in demand, along with upturns inmethanol market prices.
In these circumstances, the MGC Group strove to execute basic policies under “MGC Advance2020,” amedium-term management plan. More specifically, the Group endeavored to improve its corporate value by
promoting such strategies as “Strengthening the earning power of existing businesses with a focus on corebusinesses,” “Creating and developing new businesses,” and “Implementing investment strategies to form an
optimal business portfolio.”
The MGC Group’s net sales decreased year on year due primarily to a drop in the sales volume of general-purpose
aromatic chemicals and foamed plastics.
However, group operating income rose year on year, despite increases in repair and other fixed costs, thanks
primarily to growth in the sales volume of semiconductor-related products and optical polymers, along with lower
raw material and fuel prices.
Ordinary income increased due to the higher operating income as well as improvement in equity in earnings ofaffiliates related to overseas methanol producing companies that reflected the absence of one-off costs (¥7.8 billion)
recorded in the previous fiscal year in connection with a joint venture in Saudi Arabia.
Net income attributable to owners of the parent grew, despite such factors as growth in impairment losses and adecrease in gain on sales of investment securities, due mainly to the increase in ordinary income.
Operating results by segment are as described below.

20

In addition, the MGC Group revised the definition of its reportable segments in the first quarter of the fiscal year
ended March 31, 2021. To provide comparative year-on-year segment results, the Group has restated the operating
results of the previous fiscal year to reflect the revised segmentation.

Results by Business Segment
Basic Chemicals(Billions of yen)

FY2019FY2020Change

Sales

357.3

315.0

(42.2)

Operating income

11.2

9.6

(1.6)

Ordinary income

4.7

11.0

6.2

The methanol business saw an improvement in earnings thanks mainly to an upturn in market prices in the second
half.
Methanol and ammonia-based chemicals posted a decrease in earnings compared with the previous fiscal year due
mainly to a decline in market prices of MMA-based products and an increase in repair costs.
Specialty aromatic chemical products posted earnings on par with the previous fiscal year, due mainly toremarkable second-half recovery in the sales volume of meta-xylenediamine, which had previously been affectedby first-half plunge in demand, in addition to solid sales of aromatic aldehydes.
General-purpose aromatic chemical products suffered decreases in net sales and earnings compared with theprevious fiscal year. This was, despite lower raw material and fuel prices, mainly attributable to sluggish sales
volumes of meta-xylene and purified isophthalic acid, as well as lower sales prices of these offerings.
Foamed plastics were buoyed by second-half recovery in demand in the automotive industry, which had been hit
by demand stagnation in the first half, and growing product needs associated with food packaging and civilengineering. Reflecting these and other factors, earnings from these offerings were virtually unchanged from theprevious fiscal year.

21Specialty Chemicals(Billions of yen)     

FY2019FY2020Change

Sales

255.1

267.4

12.3

Operating income

25.5

34.8

9.2

Ordinary income

28.1

37.5

9.3

Inorganic chemicals posted an increase in earnings compared with the previous fiscal year thanks primarily to
growth in the sales volume of chemicals for use in semiconductor manufacturing.
Earnings from engineering plastics were on par with the previous fiscal year thanks mainly to second-halfrecovery in demand for polycarbonates and polyacetal for automotive and other applications, despite lower
first-half demand in these fields.
Optical materials were somewhat affected by signs of stagnation in sales volume in the fourth quarter due to suchfactors as shortages of semiconductors and inventory adjustments carried out by customers. However, theseofferings posted increases in net sales and earnings due to the growing use of multiple camera lenses insmartphones and growth in optical polymer sales volume thanks to measures executed in October 2019 to enhance
production capacity.
Electronic materials saw increases in net sales and earnings. This was mainly attributable to growing demand for
products used in data centers and other ICT-related fields as well as the higher sales volume of BT materials forsemiconductor packaging, the core product category for electronic materials, reflecting the introduction of a new
product for use in antenna-in-package substrates to be installed in 5G-compatible smartphones.
Oxygen absorbers such as AGELESS® posted an increase in earnings compared with the previous fiscal year,
despite a decline in demand for offerings used in souvenirs and other tourism-related products, thanks mainly to asolid volume of exports.

Other

FY2019FY2020Change

Sales

0.8

13.2

12.3

Operating income

0

3.2

3.1

Ordinary income

0

3.2

3.2

In Other, the Group posted an increase in earnings from energy-related businesses due to surges in electricity rates in
the fourth quarter.

22

Outlook for FY2021
In the fiscal year ending March 31, 2022, the global economy is expected to enjoy recovery and growththanks mainly to progress in novel coronavirus vaccination and economic stimulus packages
introduced by each country. However, the outlook still remains quite uncertain due to such factors as
virus resurgences induced by the emergence of new variants.
Against this backdrop, the MGC Group will implement “Grow UP 2023,” a newly formulated
medium-term management plan, as it aims to shift to a profit structure that is resilient against changes
in the external environment. To this end, the Group will develop an optimal business portfolio via theexecution of such strategies as “Further strengthen competitively advantageous businesses,”“Accelerate creation and development of new businesses,” and “Reevaluate and rebuild unprofitablebusinesses.”
For the fiscal year ending March 31, 2022, the Group anticipates that net sales will increase year on
year, despite the adoption of the Accounting Standard for Revenue Recognition. The expected growthin net sales will be primarily supported by global economic recovery and growth, rising market prices
of MGC offerings, and constantly robust semiconductor demand that will, in turn, help raise the sales
volume of such offerings.
Moreover, the Group expects operating income to grow year on year due to higher sales volumes andan expected decrease in repair cost, despite rising raw material and fuel prices as well as theimplementation of active investment for growth and resulting increases in depreciation and R&D costs.
The Group also forecasts that ordinary income and net income attributable to owners of the parent
will both increase year on year due mainly to higher operating income and an expected increase inequity in earnings of affiliates buoyed by rising market prices of methanol.
Taking these factors into account, the Group’s consolidated operating results forecasts for the fiscal
year ending March 31, 2022, include net sales of ¥640.0 billion, operating income of ¥48.0 billion,
ordinary income of ¥56.0 billion, and net income attributable to owners of the parent of ¥41.0 billion.
The above forecasts assume exchange rates of ¥105=$1 and ¥130=€1.
(End)

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