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, 2022

Summary of Consolidated Financial Results for the Fiscal Year Ended
March 31, 2022 (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 28, 2022
Scheduled date to commence dividend payments:
June 9, 2022
Scheduled date to file annual securities report:
June 28, 2022
(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 toMarch 31, 2022)(1) Summary of consolidated income statement
Net sales
Fiscal year ended
March 31, 2022
March 31, 2021
Note:

(Percentages indicate year-on-year changes.)

Operating profit

Millions of yen% Millions of yen

705,656595,718

18.5
(2.9)

55,36044,510Comprehensive income March 31, 2022
March 31, 2021

Fiscal year ended
March 31, 2022
March 31, 2021

Profit attributable toowners of parent

Ordinary profit% Millions of yen

24.4
29.9

74,15250,240¥66,232 million¥53,101 million% Millions of yen

47.6
61.5

48,29536,070

%

33.9
70.5

[24.7%][279.6%]

Basic earnings per
share

Diluted earnings
per share

Return on equity

Ordinary
profit/total assets

Yen

Yen

%

%

%

8.8
7.1

8.4
6.2

7.8
7.5

232.15173.41––

Operatingprofit/net sales

Reference: Equity in earnings of entities accounted for using equity method
March 31, 2022
¥14,883 million
March 31, 2021
¥5,162 million
Note:

The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March
31, 2020) and relevant revised ASBJ regulations from the beginning of the current fiscal year, and each figure forthe fiscal year ended March 31, 2022 is the figure after applying the accounting standard and relevant revised ASBJ
regulations.

-1-(2) Consolidated financial position
Total assets
As ofMarch 31, 2022
March 31, 2021

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%%

928,651
836,364

630,887
581,41161.2
62.7

2,733.86
2,520.34

Reference:

Note:

EquityAs of March 31, 2022
¥568,766 million
As of March 31, 2021
¥524,264 million
The Company has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March
31, 2020) and relevant revised ASBJ regulations from the beginning of the current fiscal year, and each figure as ofMarch 31, 2022 is the figure after applying the accounting standard and relevant revised ASBJ regulations.

(3) Consolidated cash flows
Cash flow fromoperating activities
Fiscal year ended
March 31, 2022
March 31, 2021

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

52,09055,464(64,954)(40,370)(3,666)
5,154

92,257
91,075

2. Dividends
Annual dividend

Fiscal year ended
March 31, 2021
Fiscal year ended
March 31, 2022
Fiscal year
ending March 31,
2023 (Forecast)

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

Dividend to
net assets
ratio(consolidated)First
quarterend

Secondquarterend

Third
quarterend

Fiscalyear-end

Yen

Yen

Yen

Yen

Yen

Millions of
yen

%

%

Total

–

35.00

–

35.00

70.00

14,559

40.4

2.9

–

45.00

–

35.00

80.00

16,642

34.5

3.0

–

40.00

–

40.00

80.00

26.9

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, 2023 (from April 1, 2022 toMarch 31, 2023)(Percentages indicate year-on-year changes.)
Operating profit

Net sales
Millions ofyen

Six months ending
September 30,
2022 (cumulative)
Fiscal year ending
March 31, 2023%

Profit attributable toowners of parent

Ordinary profit

Millions ofyen%Millions ofyen%Millions of
yen

%

Basic
earnings per
share
Yen

390,000

16.1

30,000(0.1)

39,0000.6

29,0002.9140.58800,000

13.4

61,50011.1

81,5009.9

61,00026.3

296.95-2-

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): Yes
Newly included: 1 company (company name: MGC Specialty Chemicals Netherlands B.V.)(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, 2022

225,739,199

As of March 31, 2021

225,739,199(ii) Number of shares of treasury stock at term-end
As of March 31, 2022

17,693,673

As of March 31, 2021

17,726,057(iii) Average number of outstanding shares (cumulative from the beginning of the fiscal year)
For the year ended March 31, 2022

208,036,405

For the year ended March 31, 2021

208,004,306[Reference] Outline of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2022 (from April 1, 2021 toMarch 31, 2022)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
March 31, 2022
March 31, 2021

Operating profit

Millions of yen% Millions of yen

427,927
344,898

24.1
(1.8)

Basic earnings per
share
Fiscal year ended
March 31, 2022
March 31, 2021

Ordinary profit% Millions of yen

32,364
19,101

69.4
10.6

46,11626,443

Profit% Millions of yen

74.4(12.1)

35,812
23,966%49.4(18.3)

Diluted earnings per
share

Yen

Yen

172.15115.22––(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2022
March 31, 2021
Reference:

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%%

529,631469,634

323,002306,478

61.0
65.3

1,552.56
1,473.36

EquityAs of March 31, 2022
As of March 31, 2021

¥323,002 million¥306,478 million-3-2. Non-consolidated business forecasts for the fiscal year ending March 31, 2023 (from April 1, 2022
to March 31, 2023)
Net sales
Millions ofyen

Fiscal year ending
March 31, 2023

480,000(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
share

Operating profit%
12.2

Millions ofyen
28,500%(11.9)

Millions ofyen%Millions ofyen

42,500(7.8)

36,500%1.9

Yen
177.68* 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 21.

-4-

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3. Consolidated Statement of Changes in Net Assets
FY2020(Millions of yen)
Shareholders' equity
Share capital

Balance at beginning of period

Capital surplus

41,970Retained earnings

34,234

Total shareholders'equityTreasury shares

439,701

494,306△21,600

Changes during period
Dividends of surplus
Profit attributable to owners ofparent△14,559△14,559

36,07036,070Purchase of treasury shares
Disposal of treasury shares

14

Change in scope of
consolidation
Change in scope of equity
methodChange in ownership interestof parent due to transactions
with non-controlling interests

△4

△4

42

57

△3

△3

△1,418△1,41851

51

Net changes in items otherthan shareholders' equity

㸫

Total changes during period
Balance at end of period㸫66

20,08837

20,192

41,97034,301

459,790△21,562

514,499

Accumulated other comprehensive income
Valuation
Total
difference
Foreign
DeferredRemeasureme accumulatedoncurrency
othergains or losses
nts of defined
availabletranslation
on hedges
benefit plans comprehens
for-saleadjustment
ive income
securities
Balance at beginning of period

7,789

4

△6,701△2,877△1,785

Noncontrollinginterests

Total net
assets55,619548,141

Changes during period
Dividends of surplus△14,559

Profit attributable to owners ofparent36,070Purchase of treasury shares△4

Disposal of treasury shares

57

Change in scope of
consolidation
Change in scope of equity
methodChange in ownership interestof parent due to transactions
with non-controlling interests△3△1,41851

Net changes in items otherthan shareholders' equity

6,630

△622

3,159

2,382

11,5501,526

13,077

Total changes during period

6,630

△622

3,159

2,382

11,5501,526

33,269Balance at end of period

14,419△618△3,542

△494

9,765

57,146

581,411

FY2021(Millions of yen)
Shareholders' equity
Share capital

Balance at beginning of period

Capital surplus

41,970Retained earnings

34,301

459,790

Cumulative effects of changes
in accounting policies

Total shareholders'equityTreasury shares

514,499△21,562△50

Restated balance

41,97034,301△50

459,739

514,448△21,562

Changes during period
Dividends of surplus
Profit attributable to owners ofparent△16,642△16,642

48,29548,295Purchase of treasury shares
Disposal of treasury shares

39

Change in scope of
consolidation
Change in scope of equity
methodChange in ownership interestof parent due to transactions
with non-controlling interests

△5

△5

42

81

441

441

620

620

△0

△0

Net changes in items otherthan shareholders' equity

㸫

Total changes during period
Balance at end of period㸫

38

32,71536

32,791

41,97034,339492,455△21,525547,239

Accumulated other comprehensive income
Valuation
Total
Foreigndifference
DeferredRemeasureme accumulated
currencyon
othergains or losses
nts of definedtranslation
availableon hedges
benefit plans comprehens
adjustment
for-saleive income
securities
Balance at beginning of period

14,419△618△3,542

△494

9,765

Noncontrollinginterests

Total net
assets57,146

581,411

Cumulative effects of changes
in accounting policies
Restated balance△50
14,419△618△3,542

△494

9,765

57,146581,360

Changes during period
Dividends of surplus△16,642

Profit attributable to owners ofparent48,295Purchase of treasury shares△5

Disposal of treasury shares

81

Change in scope of
consolidation
Change in scope of equity
methodChange in ownership interestof parent due to transactions
with non-controlling interests

441
620
△0

Net changes in items otherthan shareholders' equity△3,043291

13,404

1,108

11,761

4,974

16,736

Total changes during period△3,043291

13,404

1,108

11,761

4,974

49,527

Balance at end of period

11,376

△326

9,861

614

21,526

62,121

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Segment Information(Billions of yen, rounded down)
FY2020

FY2021

ChangeFY2022First half
Forecast

FY 2022
Full Year
Forecast

595.7

705.6

109.9

390.0

800.0

Basic Chemicals

335.7

425.3

89.6

223.3

459.8

Specialty Chemicals

267.8

285.5

17.6

169.7

346.0

Other and Adjustment

(7.8)

(5.2)

2.6

(3.0)

(5.9)

Net sales

Operating profit

44.5

55.3

10.8

30.0

61.5

Basic Chemicals

12.8

25.7

12.9

11.6

20.6

Specialty Chemicals

34.8

33.6

(1.1)

20.2

44.4

Other and Adjustment

(3.1)

(4.0)

(0.9)

(1.8)

(3.5)

Non-operating profit

5.7

18.7

13.0

9.0

20.0

Ordinary profit

50.2

74.1

23.9

39.0

81.5

Basic Chemicals

14.2

30.0

15.8

17.1

33.0

Specialty Chemicals

37.5

45.4

7.8

23.2

52.0

Other and Adjustment

(1.5)

(1.3)

0.1

(1.4)

(3.5)

Extoraordinary income and loss, net

(1.2)

(4.5)

(3.2)

1.0

1.0

Income before income taxes, etc.

48.9

69.6

20.6

40.0

82.5

Profit attributable to owners of parent

36.0

48.2

12.2

29.0

61.0

FY2020

FY2021

ChangeFY2022First half
Forecast

FY 2022
Full Year
Forecast

595.7

705.6

109.9

390.0

800.0

Natural Gas Chemicals

158.2

226.2

67.9

111.8

235.1

Aromatic Chemicals

183.4

202.8

19.3

113.3

228.3

Specialty Chemicals
Information andAdvanced Materials
Other and Adjustment

207.4

214.1

6.7

132.1

269.8

62.3

71.5

9.1

37.6

76.4

䛆reference: former segments 䛇Net sales(15.8)

(9.1)

6.6

(4.9)

(9.7)

44.5

55.3

10.8

30.0

61.5

Natural Gas Chemicals

0.9

9.7

8.7

3.9

7.2

Aromatic Chemicals

11.7

16.0

4.2

7.6

13.4

Specialty Chemicals
Information andAdvanced Materials
Other and Adjustment

22.8

17.4

(5.4)

10.4

25.1

11.9

16.1

4.2

9.7

19.2

(3.0)

(3.9)

(0.9)

(1.8)

(3.5)

Operating profit

Non-operating profit

5.7

18.7

13.0

9.0

20.0

Ordinary profit

50.2

74.1

23.9

39.0

81.5

Natural Gas Chemicals

2.6

14.0

11.3

9.5

19.9

Aromatic Chemicals

11.6

16.0

4.4

7.6

13.0

Specialty Chemicals
Information andAdvanced Materials
Other and Adjustment

25.5

27.6

2.0

12.7

31.3

11.9

17.8

5.8

10.5

20.7

(1.5)

(1.3)

0.1

(1.4)

(3.5)

The breakdown by former segments is for reference only, calculated in accordance with past segments for convenience.
*Effective from the fiscal year ended March 31, 2022, the Company has changed the segments of some of its products.
Segment information for the previous fiscal year has also been prepared based on the classification method after the change.

㻝㻢Other Information 1
Investments(Billions of yen)

Full year

39.2

42.3

40.2

FY2022
Forecast
54.7
90.0

1H

18.6

22.4

15.8

22.0

49.0

Depreciation &amortization(Billions of yen)

Full year

27.4

29.5

30.6

31.9

34.0

1H

13.5

14.4

15.1

15.8

16.0

R&D expenditures(Billions of yen)

Full year

18.6

19.6

19.9

21.0

24.5

FY2018

Number of Staff

FY2019FY2020

FY2021

1H

9.1

9.4

9.8

10.1

12.0

Year-end

8,276

8,954

8,998

9,888

10,541

ROA

8.7%

3.9%

6.2%

8.4%

8.5%

ROE

11.3%

4.3%

7.1%

8.8%

10.4%

ROIC
(Ordinary income/invested capital)

10.9%

4.9%

7.7%

10.4%

10.4%

Other Information 2
FY2017
Result

FY2019Result

FY2018ResultFY2020ResultFY2022

FY2021ResultForecast

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)

111

111

110

112

109

109

107

105

110

115

125

Exchange Rate
(JPY/EUR, Average)

126

133

130

127

121

120

121

126

131

130

130

crude oil (Dubai)(USD/BBL)

50

62

73

65

64

56

37

52

69

87

100

Methanol(USD/MT, Asian
average spot price)

296

381

408

335

277

245

194

319

370

428

420

Mixed Xylene(USD/MT)

650

725

845

730

705

640

420

560

780

875

975

Bisphenol A(USD/MT)*

1,100
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3,3002,750
㹼3,7002,100
㹼3,1501,700
㹼2,300Polycarbonate(USD/MT)*2,500
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4,0003,100
㹼4,0502,650
㹼3,6502,200
㹼3,000*Describe the minimum and maximum values during the period㻝㻣Qualitative Information
From the first quarter of the fiscal year ended March 31, 2022, the MGC Group adopted the Accounting Standard
for Revenue Recognition (Accounting Standards Board of Japan (ASBJ) Statement No. 29, March 31, 2020).

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

FY2020

FY2021

ChangeNet sales

595.7

705.6

109.9

Operating income

44.5

55.3

10.8

Ordinary income

50.2

74.1

23.9

Profit attributable to owners of the parent

36.0

48.2

12.2

During the fiscal year ended March 31, 2022 (April 1, 2021 – March 31, 2022), outlook for the world economy
remained unstable despite glimmers of economic recovery from pandemic-induced stagnation. With the ongoing
impact of logistics disruptions and semiconductor shortages already hindering economic activities, the eruption of
the Russia-Ukraine conflict has caused raw material and fuel prices to surge sharply, while the depreciation of theyen has become more drastic.
Against this backdrop, the MGC Group nevertheless benefitted from constantly robust demand forsemiconductor-related products reflecting market growth as well as recovery in demand for automotive-related andother products that had been heavily affected by the novel coronavirus pandemic, along with improvement inmarket prices for general-purpose products, such as methanol, amid rises in raw material and fuel prices.
In addition, the MGC Group launched a medium-term management plan in April 2021. In line with this plan, theGroup 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,” and͌“Reevaluate and rebuild unprofitable businesses.”
These efforts will help push ahead with business portfolio reforms.
The MGC Group’s net sales increased due mainly to upturns in market prices for methanol and other offerings aswell as recovery in overall sales volume.
Furthermore, operating income rose, despite increases in raw material and fuel prices, lower sales volumes of
optical polymers and other negative factors affecting profit. This was thanks primarily to the higher sales volumesof semiconductor-related products, recovery in demand for products that had been affected by fallout from thenovel coronavirus pandemic, and rising market prices for general-purpose products.
Ordinary income increased due primarily to higher operating income as well as growth in equity in earnings ofaffiliates related to engineering plastics and overseas methanol producing companies.
18

Net income attributable to owners of the parent grew, mainly on higher ordinary income, despite an increase in
extraordinary losses reflecting such factors as the recording of an impairment loss in connection with businessrestructuring and other measures.
Operating results by segment are as described below.
Please note, the MGC Group revised the definition of its reportable segments in the first quarter of the fiscal year
ended March 31, 2022. 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)

FY2020

FY2021

ChangeNet Sales

328.0

419.9

91.8

Operating income

12.8

25.7

12.9

Ordinary income

14.2

30.0

15.8

The methanol business saw increases in both net sales and earnings due mainly to a significant upturn in market
prices compared with the previous fiscal year.
Methanol and ammonia-based chemicals posted increases in net sales and earnings reflecting such factors as arise in neopentyl glycol market prices and a decrease in repair costs, despite higher raw material prices.
High-performance products*1 posted increases in net sales and earnings thanks primarily to recovery in demand
for meta-xylenediamine (MXDA), which had been affected by fallout from the novel coronavirus pandemic in thesame period of the previous fiscal year, along with firm sales of aromatic aldehydes.
Xylene separators and derivatives*2 saw increase in net sales and earnings due mainly to upturns in purified
isophthalic acid (PIA) market prices.
Foamed plastics posted a decrease in earnings compared with the previous fiscal year, due mainly to higher raw
material and fuel prices, despite the higher sales volume of flat panel display shields and automotive materials.
*1 MXDA, MX nylon, aromatic aldehydes and other offerings that had been previously classified as specialty
aromatic chemicals*2 Meta-xylene, PIA and other offerings that had been previously classified as general-purpose aromatic chemicals

19

Specialty Chemicals(Billions of yen)

FY2020

FY2021

ChangeNet Sales

267.4

285.4

17.9

Operating income

34.8

33.6

(1.1)

Ordinary income

37.5

45.4

7.8

Inorganic chemicals posted increases in net sales and earnings thanks primarily to growth in the sales volume ofchemicals for use in semiconductor manufacturing.
Engineering plastics saw increases in net sales and earnings, despite deterioration in the profitability ofpolycarbonates on the back of such negative factors as higher raw material and fuel prices, due mainly to robust
sales of polyacetal in addition to recovery

in sales volumes in automotive-related and other fields.

Optical materials posted decreases in net sales and earnings, despite recovery in optical polymer demand, which
bottomed out in the first quarter. The decreases were due mainly to lower sales volume reflecting inventory
adjustment carried out by customers during the first half.
Electronic materials saw increases in net sales and earnings. This was thanks mainly to robust showings of BT
materials for IC plastic packaging, the core product category for electronic materials, reflecting constantly robust
demand for products used in memory devices and 5G smartphones, along with higher sales volumes, especially inthe first half, for general-purpose materials for a broad range of applications including PC-related devices and home
appliances.
Oxygen absorbers such as AGELESSTM posted an increase in earnings, thanks mainly to recovery in domestic
demand for products used for foodstuffs, achieving an improvement from the stagnation brought about by the novel
coronavirus pandemic in the previous fiscal year.

20Outlook for FY2022
In the fiscal year ending March 31, 2023, the outlook for the world economy is expected to remain
unclear despite the ongoing trend toward economic recovery in step with progress in countermeasuresagainst the novel coronavirus pandemic. This is due to looming anxieties over geopolitical instability
worldwide as well as semiconductor shortages, higher raw material and fuel prices, and surging
logistics costs.
Under these circumstances, the Group aims to continue executing the medium-term management
plan launched in April 2021. Specifically, the Group will pursue a shift to a profit structure resilient tochanges in the business environment, with the goal of developing an optimal business portfolio.
Accordingly, the Group will strive to:z“Further strengthen competitively advantageous (“differentiating”) businesses,”z“Accelerate creation and development of new businesses,” andz“Reevaluate and rebuild unprofitable businesses.”
With this in mind, the Group will maintain a proactive approach to growth investment indifferentiating businesses and other operations in the fiscal year ending March 31, 2023. At the sametime, the Group intends to push ahead further with strengthening R&D toward the creation of new
businesses.
Taking these factors into account, the Group expects consolidated net sales for the fiscal year ending
March 31, 2023 to surpass operating results for the fiscal year ended March 31, 2022. This projection
is backed by the expected increase in sales volumes, reflecting such positive factors as continuously
robust semiconductor demand, along with the impact of foreign exchange fluctuations and the planned
inclusion of a South Korea-based polyacetal sales company into the scope of consolidation.
Similarly, operating income is likely to exceed operating results for the fiscal year ended March 31,
2022, despite the expected rises in repair costs and raw material and fuel prices as well as higher
depreciation costs and R&D expenses, thanks mainly to growth in sales volumes, the effect of thedepreciation of the yen and the improving profitability of the Group’s bases of polycarbonate-related
operations in China.
Moreover, ordinary income and net income attributable to owners of the parent are expected tosurpass operating results for the fiscal year ended March 31, 2022, due primarily to higher operating
income and the expected increase in equity in earnings of affiliates engaged in methanol-related
businesses.
Taking these factors into account, the Group’s consolidated operating results forecasts for the fiscal
year ending March 31, 2023, include net sales of ¥800.0 billion, operating income of ¥61.5 billion,
ordinary income of ¥81.5 billion, and net income attributable to owners of the parent of ¥61.0 billion.
The above forecasts assume exchange rates of ¥125=$1 and ¥130=€1.
(QG