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 10, 2024

Summary of Consolidated Financial Results for the Fiscal Year Ended
March 31, 2024 (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, CSR & IR DivisionTEL:+81-3-3283-5041
Scheduled date of ordinary general meeting of shareholders:June 25, 2024
Scheduled date to commence dividend payments:
June 6, 2024
Scheduled date to file annual securities report:
June 25, 2024
(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 toMarch 31, 2024)(1) Summary of consolidated income statement
Net sales
Fiscal year ended
March 31, 2024
March 31, 2023
Note:

(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen% Millions of yen

813,417781,211

4.1
10.7% Millions of yen

47,33749,030(3.5)(11.4)

Comprehensive income March 31, 2024
March 31, 2023
Basic earnings per
share

Fiscal year ended
March 31, 2024
March 31, 2023

Yen

190.97239.0846,04069,764% Millions of yen(34.0)(5.9)¥87,753 million¥69,751 million

Diluted earnings
per share

Profit attributable toowners of parent

Ordinary profit

Return on equity

Yen

–
–

38,81849,085%(20.9)
1.6[25.8%][5.3%]

Ordinary
profit/total assets

Operatingprofit/net sales

%

%

%

6.1
8.3

4.4
7.1

5.8
6.3

Reference: Equity in earnings of entities accounted for using equity method
March 31, 2024¥(5,696) million
March 31, 2023
¥17,546 million(2) Consolidated financial position
Total assets
As ofMarch 31, 2024
March 31, 2023
Reference:

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

1,068,010
1,029,317

684,832
671,24961.6
59.0

3,284.96
2,970.07

EquityAs of March 31, 2024
As of March 31, 2023

¥657,745 million¥607,613 million- 1 -(3) Consolidated cash flows
Cash flow fromoperating activities
Fiscal year ended
March 31, 2024
March 31, 2023

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

73,47355,222(76,172)(64,071)(40,689)
7,996

65,397101,185

2. Dividends
Annual dividendFirst
quarterend

Secondquarterend

Yen

Fiscal year ended
March 31, 2023
Fiscal year ended
March 31, 2024
Fiscal year
ending March 31,
2025 (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

%

%

–

40.00

–

40.00

80.00

15,464

33.5

2.8

–

40.00

–

40.00

80.00

16,367

41.9

2.6

–

45.00

–

45.00

90.00

39.2

3. Consolidated business forecasts for the fiscal year ending March 31, 2025 (from April 1, 2024 toMarch 31, 2025)(Percentages indicate year-on-year changes.)
Net sales

Six months ending
September 30,
2024 (cumulative)
Fiscal year ending
March 31, 2025

Operating profit

Profit attributable toowners of parent

Ordinary profit

Basicearnings per
share

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

%

Yen

370,000(7.4)

26,00017.6

30,00020.3

21,000(32.8)

104.88780,000(4.1)

52,0009.8

59,00028.1

46,00018.5

229.74- 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: JSP Corporation, JSP International Group 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 issued shares (common stock)(i) Number of issued shares at term end (including treasury stock)
As of March 31, 2024

217,239,199

As of March 31, 2023

222,239,199(ii) Number of shares of treasury stock at term-end
As of March 31, 2024

17,009,734

As of March 31, 2023

17,660,740(iii) Average number of outstanding shares (cumulative from the beginning of the fiscal year)
For the year ended March 31, 2024

203,277,084

For the year ended March 31, 2023

205,305,427[Reference] Outline of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2024 (from April 1, 2023 toMarch 31, 2024)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
March 31, 2024
March 31, 2023

Operating profit

Millions of yen% Millions of yen

400,848439,525(8.8)
2.7

Basic earnings per
share
Fiscal year ended
March 31, 2024
March 31, 2023

Ordinary profit% Millions of yen

15,645
19,144(18.3)(40.8)

37,561
40,528

Profit% Millions of yen(7.3)(12.1)

31,73037,371%(15.1)
4.4

Diluted earnings per
share

Yen

Yen

156.09182.03––(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2024
March 31, 2023
Reference:

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

609,326
584,435

343,671
331,92256.4
56.8

1,716.39
1,622.47

EquityAs of March 31, 2024
As of March 31, 2023

¥343,671 million¥331,922 million- 3 -2. Non-consolidated business forecasts for the fiscal year ending March 31, 2025 (from April 1, 2024
to March 31, 2025)
Net sales
Millions of yen

Six months ending
September 30,
2024 (cumulative)
Fiscal year ending
March 31, 2025

(Percentages indicate year-on-year changes.)
Basic earnings per
Profitshare

Ordinary profit% Millions of yen% Millions of yen%

Yen

220,000

19.6

17,000(31.1)

15,000(39.9)

74.91

460,000

14.8

32,000(14.8)

32,0000.9

159.82* 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.
(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, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade,and contract 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, 2024

108,378

71,447

176,626

165,648

93
89,367
22,331
66,444
20,775△767
483,249－
111,668
19,76969,092
26,175△651
463,148

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

232,324△144,676
87,647535,257△448,906

87,89086,35043,843
6,603△2,224
4,379
66,46757,618△48,576
9,042
313,767

34,023
5,148△1,731
3,417
94,631
52,715△44,161
8,553
314,624

4,425
34
3,479
4,041
11,98016,868
54
4,921
3,026
24,871200,101
8,184
3,863
1,387
8,706
△1,922
220,320
546,068
1,029,317

236,3548,488
3,180
11,005
7,854△1,518265,365
604,861
1,068,010

(Millions of yen)
As of March 31, 2023
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 business restructuring
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-forsale securities
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, 2024

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

109,01351,81819,781
1,001
6,134
5,116

32

27

421
40
39
47,670220,442683
94－
47,809241,480

20,00074,6803,276
12,51430,00069,671
2,511
16,334

279

340

23
2,499

23
1,875

59

15

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

364
4,257
5,707
10,593
141,696
383,177

41,97034,293
521,426△23,838
573,852

41,97035,551
536,232△26,127
587,627

8,950

17,573110
22,894
1,805

171
40,143
12,22933,76070,11763,636671,249
1,029,317

27,087684,832
1,068,010

2. Consolidated Statements of Income(Millions of yen)
Fiscal year ended
March 31, 2023
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
Share of loss of entities accounted forusing equity method
Other
Total non-operating expenses
Ordinary profit-7-

Fiscal year ended
March 31, 2024

781,211
613,031
168,179
119,149
49,030813,417640,227
173,189
125,852
47,337

1,157
3,021

1,775
3,205

17,546－

5,479
27,205

6,436
11,417

1,745
1,852
858
735

2,564
1,405
1,165
660

－

5,696

1,279
6,470
69,764

1,221
12,71446,040(Millions of yen)
Fiscal year ended
March 31, 2023
Extraordinary income
Gain on step acquisitions
Gain on sale of investment securities
Insurance claim income
Subsidy income
Gain on liquidation of subsidiaries andassociates
Compensation income
Gain on recovery of money transfer scam at
subsidiary
Reversal of provision for loss on businessof subsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on sale of shares of subsidiaries andassociates
Impairment losses
Loss on tax purpose reduction entry of noncurrent assets
Loss on disposal of non-current assets
Provision of allowance for doubtful accounts
Loss on disaster
Provision for business restructuring
Loss on valuation of shares of subsidiaries
and associates
Expenses for land maintenanceTotal 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, 2024－
3,732
※２ 151－※１ 15,085－

325※４ 649－※５ 215

－

128

－

4,876

20,568－2,843※６ 1,128※６ 1,488－※７ 704※８ 872※８ 307※９ 410※９ 2002,830※２ 1,434※３ 893－※10 177※11 870

－

846

－

275
4,402
70,23913,831
1,619
15,45054,788－5,722
60,887
14,528△456
14,072
46,815

5,703

7,996

49,08538,818(Millions of yen)
Fiscal year ended
March 31, 2023
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, 2024

54,78846,815△2,430

8,789

51
9,408

△84
16,189901

10,995

7,033

5,048

14,96369,75140,93887,75361,31975,162

8,432

12,591

3. Consolidated Statement of Changes in Net Assets
FY2022(Millions of yen)
Shareholders' equity
Share capital
Balance at beginning of
periodCapital surplus

41,970Retained earnings

34,339492,455

Treasury shares△21,525

Total shareholders'equity547,239

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
periodBalance at end of 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

－
－

△46

28,971△2,312

26,612

41,97034,293

521,426△23,838

573,852- 10 -

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges11,376△326

NonForeign Remeasureme
Totalcurrency
nts ofaccumulate controllinginterests
translatio
definedd othernbenefitcomprehens
adjustmentplans
ive income
9,861

614

21,526

62,121

Total net
assets630,887

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- 11 -

FY2023(Millions of yen)
Shareholders' equity
Share capital

Capital surplus

41,97034,293

Balance at beginningof period

Retainedearnings
521,426

Treasury shares

Total
shareholders'equity△23,838

573,852

Changes during period
Dividends of surplus
Profit attributableto owners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Transfer fromretained earnings tocapital surplus
Change in ownershipinterest of parent
due to transactions
with non-controllinginterests
Net changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of
periodBalance at beginningof period
Changes during period△16,367△16,367

38,81838,818△10,005△10,005

25

45

70

△7,670

7,670

－

7,645

△7,645

－

1,258

1,258

－
－

1,258

14,805△2,288

13,77541,97035,551

536,232△26,127

587,627

Accumulated other comprehensive income
Valuation
Total
NonForeign Remeasure accumuladifferen Deferred currency
controlli Total net
ce on
ments
of
ted
ng
assetsgains or translat defined
availabl losses
otherinterests
onion
e-forbenefit
comprehehedgesadjustme
sale
plans
nsive
nt
securiti
incomees
8,950
110
22,894
1,805
33,76063,636 671,249

Dividends of surplus△16,367

Profit attributableto owners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Transfer fromretained earnings tocapital surplus
Change in ownershipinterest of parent
due to transactions
with non-controllinginterests
Net changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of
period38,818△10,005
70
－
－

1,258

8,622

61

17,24910,42336,356△36,549

△192

8,622

61

17,24910,42336,356△36,549

13,582

17,573

171

40,143

12,22970,11727,087684,832- 12 -

4. Consolidated Statement of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2023
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
Loss (gain) on sale of shares ofsubsidiaries and associates
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
Loss (gain) on step acquisitions
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, 2024

70,23933,56560,88736,304

1,653

1,254

405

1,929

△17,546

5,696

1,128
△163

1,488
△1,493

－

2,843

531

172

△851

△407

△4,1791,745△4,9802,564△3,980△2,866

4

118

－
2,412
△19,711△6,868△15,085
16,865△742△14,286

△192

△772

△2

△63

870
△1,101
57,957
4,361－△15,755
73,671
4,986

15,082

8,473△1,654△20,686
163△2,565△12,588
1,496

55,22273,473

(Millions of yen)
Fiscal year ended
March 31, 2023
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
Proceeds from purchase of shares ofsubsidiaries resulting in change in scope of
consolidation
Payments for sale 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
Proceeds from issuance of bonds
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, 2024

△62,721202△1,795
5,739△2,354469△80,815
404
△550
5,372
△4,179296－

11,894－△7,941△3,612△653△64,071△76,172△7,062△1,52850,289△7,965－△7,083
0△15,464△4,695

10,254△23,234
9,952△10,0050△16,367△7,023△2,195－2,173△2,736

7,996△40,689

7,737

7,601

6,885

△35,787

92,257101,185

2,041－

101,185

65,397

5. Segment Information
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

Transactions withother segments

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

64,650

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- 15 -

FY2023

Basic Chemicals
Business Sector

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

Other

Sales
Revenues from external

404,562

408,724130

0813,417

8,316

492

12

△8,821－

Net sales

412,878409,217142△8,821

813,417

Ordinary profit (loss)

10,13838,689110△2,89846,040Assets451,530

590,343

28,259△2,123

1,068,010

17,364

16,88618

2,034

36,304

Amortization of goodwill

343

1,413

－

－

1,757

Interest income

990

1,190

1

△406

1,775

Interest expenses

525

2,386

0

△348

2,564

△8,487

2,782

－

7

△5,696

133,831

42,330－△0176,162

37,026

41,9301

2,794

81,753customers
Transactions 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)

FY2022

FY2023

ChangeNet sales

781.2

813.4

32.2

Operating profit

49.0

47.3

(1.6)

Equity in earnings of affiliates

17.5

(5.6)

(23.2)

Ordinary profit

69.7

46.0

(23.7)

Profit attributable to owners of parent

49.0

38.8

(10.2)

During the fiscal year ended March 31, 2024, the global economy was negatively affected by lingering economic
stagnation in China. Reflecting this, the pace of global economic recovery has been slower than expected. In
addition, prolonged inflation, the continuation of monetary tightening policies and other negative factors led to thedeceleration of European and U.S. economies. With stagnation in overall economic activities leading to sluggish
demand for goods, the economic environment thus remained harsh. Furthermore, in addition to the continuing
situation in Ukraine, geopolitical volatility was exacerbated by increasing tensions centered around the Middle
Eastern region. Because of these factors, formulating the future economic outlook remains challenging.
The overall business environment for the MGC Group remained harsh, even though the Group’s operating results
were positively affected by the depreciation of the yen, ongoing recovery in sales of semiconductor-related
products, such as electronic materials, and other factors. This harshness was primarily attributable to stagnant
product prices as well as sluggish demand for basic chemicals due to the lingering stagnation of the Chinese
economy and economic deceleration in Europe and elsewhere.
Against this backdrop, in the fiscal year ended March 31, 2024 the MGC Group concluded the final year of its
medium-term management plan. In line with this plan, the Group has continued to pursue a basic policy of shifting
to a profit structure resilient to changes in the business environment. To this end, the Group has striven to:・“Further strengthen competitively advantageous (“differentiating”) businesses,”・“Accelerate creation and development of new businesses,” and・“Reevaluate and rebuild unprofitable businesses.”Through these efforts, the Group has pushed ahead with business portfolio reforms.
As a result, the Group’s net sales increased. Although the exclusion of JSP Corporation from the scope of
consolidation at the end of the third quarter of the fiscal year ended March 31, 2024 and downturns in methanol andammonia market prices affected sales negatively, these factors were more than offset by positive effects arisingfrom the inclusion of Mitsubishi Engineering-Plastics Corporation into the scope of consolidation in the firstquarter, the depreciation of the yen, and other factors.
On the other hand, operating profit decreased, despite the depreciation of the yen, improvement in the
profitability of polycarbonates, recovery in demand for electronic materials and other positive factors. The decrease- 17 -

was due mainly to stagnant polyacetal market prices in contrast with robust market prices seen in the previous fiscal
year, as well as lower sales volumes of meta-xylenediamine, aromatic aldehydes, and other offerings.
Ordinary profit declined, reflecting a decrease in equity in earnings of affiliates due to downturns in methanol
market prices, impairment losses recorded at overseas methanol producing companies in the Republic of Trinidad
and Tobago, and the absence of non-operating income recorded in the previous fiscal year through the reversal ofdeferred tax liabilities at an overseas methanol producing company in Venezuela.
Moreover, profit attributable to owners of parent decreased due primarily to lower ordinary profit, despite thepositive impact on profit arising from the recording of gain on step acquisitions in connection with the inclusion of
Mitsubishi Engineering-Plastics Corporation into the scope of consolidation.
Operating results by segment are as described below.
Results by Business Segment
Basic Chemicals(Billions of yen)

FY2022

FY2023

ChangeNet sales

472.1

404.5

(67.6)

Operating profit

18.8

17.7

(1.0)

Ordinary profit

30.5

10.1

(20.4)The methanol business saw decreases in both net sales and earnings due primarily to lower market prices
compared with the previous fiscal year and deterioration in equity in earnings of affiliates.
Methanol and ammonia-based chemicals posted a decrease in net sales due mainly to downturns in market prices
for ammonia and other offerings, but recorded an increase in earnings thanks to the successful structural reform offormalin-related operations and a resulting improvement in their profitability.
The energy resources and environmental business saw a decrease in net sales due mainly to the lower sales
volume of LNG for power generation use, but posted earnings on par with the previous fiscal year due to the higher
sales volume of iodine and rising market prices for this offering.
High-performance products posted decreases in both net sales and earnings, due mainly to lower sales volumesof meta-xylenediamine and aromatic aldehydes, which reflected stagnant demand among overseas customers.
Xylene separators and derivatives saw decreases in both net sales and earnings due primarily to downturns insales prices of purified isophthalic acid (PIA), phthalic anhydride and other offerings in general.

- 18 -

Specialty Chemicals(Billions of yen)

FY2022

FY2023

ChangeNet sales

308.9

408.7

99.8

Operating profit

32.6

33.0

0.4

Ordinary profit

38.7

38.6

(0.0)

Inorganic chemicals posted increases in both net sales and earnings due mainly to the successful upward revisionof sales prices of chemicals for use in semiconductor manufacturing in order to reflect higher raw material and fuelprices as well as growing transportation costs.
Engineering plastics saw an increase in net sales and a decrease in earnings. The inclusion of Mitsubishi
Engineering-Plastics Corporation into the scope of consolidation led to sales growth, while the profitability ofpolycarbonates improved due primarily to growing sales for high-value-added products. However, overall earnings
declined due mainly to downturns in polyacetal market prices.
Optical materials posted increases in both sales and earnings, as demand for smartphones, a primary applicationof optical polymers, remained on an ongoing recovery track from the second quarter onward on the back of thecommencement of production of new models in that quarter.
Electronic materials saw increases in net sales and earnings, due mainly to recovery in demand for smartphoneand PC-related BT materials for IC plastic packaging, the core product category for electronic materials.
Oxygen absorbers such as AGELESSTM posted earnings on par with the previous fiscal year, with thedepreciation of the yen and the resulting improvement of export prices offsetting such negative factors as a recoil
from the temporary surge (due to stay-at-home demand) for products marketed in Japan for food applications andhigher raw material prices.

- 19 -

Outlook for FY2024
In the fiscal year ending March 31, 2025, the world economy is expected to grow modestly as inflation begins tostabilize. However, formulating the economic outlook remains challenging due to increasing uncertainties, such as
anxiety about the trajectory of the Chinese economy, shifts in monetary policies in major countries and growing
risks arising from geopolitical division.
Against this backdrop, the Mitsubishi Gas Chemical (MGC) Group has identified new targets under “Grow UP
2026,” a medium-term management plan which was freshly established. These targets are “Strengthening theresiliency of our business portfolio” and “Promoting sustainability management.” The Group will push ahead withvarious measures to achieve them. With regard to developing an even more resilient business portfolio, the Groupwill execute such measures as “Focusing on Uniqueness & Presence,”*1 “Building new value through innovation”
and “Restructuring businesses requiring intensive management.” Thus, the Group will thoroughly implementbusiness portfolio reforms that are directly aimed at improving capital efficiency.
*1 “Differentiating” businesses category has been renamed “Uniqueness & Presence (U&P) businesses,” andredefined as businesses that excel from the perspectives of being “growing,” “winning,” and “sustainable” (=business potential, economic value, and social value), with the potential to grow sustainably while delivering bothsocial and economic value.
As for net sales forecasts for the fiscal year ending March 31, 2025, the Group anticipates that sales will fallshort of those recorded in the fiscal year ended March 31, 2024 due mainly to the exclusion of JSP Corporation(JSP) from the scope of consolidation, despite expected recovery in demand for MGC products overall.
However, operating profit is likely to increase year on year due primarily to expected growth in the sales volumeof semiconductor-related products, such as electronic materials and inorganic chemicals, despite the negative
impact of the exclusion of JSP from the scope of consolidation and a projection that repair, R&D and other fixed
costs will increase.
Ordinary profit is similarly expected to grow year on year due mainly to higher methanol market prices that will
positively affect operating results of overseas methanol producing companies, as well as the absence of impairment
losses recorded in the fiscal year ended March 31, 2024, which will, in turn, cause equity in earnings of affiliates toimprove.
Profit attributable to owners of the parent is expected to increase year on year due mainly to higher ordinary
profit, despite the absence of gain on step acquisitions in connection with the inclusion of Mitsubishi EngineeringPlastics Corporation into the scope of consolidation in the fiscal year ended March 31, 2024.
Taking these factors into account, the Group’s consolidated operating results forecasts for the fiscal year ending
March 31, 2025, include net sales of ¥780.0 billion, operating profit of ¥52.0 billion, ordinary profit of ¥59.0
billion, and profit attributable to owners of the parent of ¥46.0 billion.
The above forecasts assume exchange rates of ¥145=$1 and ¥155=€1.
(End)- 20 -