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.

November 2, 2020

Summary of Consolidated Financial Results for the Six Months Ended
September 30, 2020 (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 to file quarterly securities report:
November 9, 2020
Scheduled date to commence dividend payments:
December 4, 2020
(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the six months ended September 30, 2020 (from April 1, 2020 to
September 30, 2020)(1) Summary of consolidated income statement (cumulative) (Percentages indicate year-on-year changes.)
Net sales
Six months ended
September 30, 2020
September 30, 2019

Operating profit

Millions of yen% Millions of yen

266,637
303,369

Note: Comprehensive income(12.1)(7.6)(10.4)(44.6)

Six months ended September 30, 2020
Six months ended September 30, 2019

Basic earnings per
share
Six months ended
September 30, 2020
September 30, 2019

% Millions of yen

14,37016,034

Profit attributable toowners of parent

Ordinary profit

16,541
11,690% Millions of yen

41.5(74.9)¥16,454 million¥5,350 million[207.5%][(87.0)%]

Diluted earnings
per share

Yen

68.54
38.45

Yen

–
–

(2) Consolidated financial position
Total assets
As of
September 30, 2020
March 31, 2020
Reference:

Net assets

Equity ratio

Millions of yen

Millions of yen%

782,563771,733

556,225
548,14164.1
63.8

EquitySeptember 30, 2020
March 31, 2020

¥501,320 million¥492,521 million-1-

14,255
8,147

%

75.0
(78.5)

2. Dividends
Annual dividend
First quarter-end

Second quarterend

Yen

Yen

Fiscal year ended
March 31, 2020
Fiscal year ending
March 31, 2021

–

35.00

–

35.00

Fiscal year ending
March 31, 2021 (Forecast)(Note) Revisions to the forecast most recently announced: None

Third quarterend

Fiscal year-end

Yen

Total

Yen

Yen

–

35.00

70.00

–

35.00

70.00

3. Consolidated business forecasts for the fiscal year ending March 31, 2021 (from April 1, 2020 toMarch 31, 2021)
Net sales
Millions ofyen

Fiscal year ending
March 31, 2021

550,000(Percentages indicate year-on-year changes.)
Basic
Profit attributable toOrdinary profit
earnings perowners of parent
share

Operating profit%(10.3)

Millions ofyen

29,000%(15.4)(Note) Revisions to the forecast most recently announced: Yes-2-

Millions ofyen

30,000%(3.6)

Millions ofyen

24,000

%

Yen

13.4

115.39

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): Yes
Excluded: 1 company (Company name: MGC MONTNEY HOLDINGS LTD.)(2)Application of special accounting for preparing quarterly consolidated financial statements: None
(3) 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
(4) Number of shares outstanding (common stock)(i) Number of shares outstanding at term end (including treasury stock)
As of September 30, 2020

225,739,199

As of March 31, 2020

225,739,199(ii) Number of shares of treasury stock at term-end
As of September 30, 2020

17,724,554

As of March 31, 2020

17,758,765(iii) Average number of shares (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2020

207,994,735

Six months ended September 30, 2019211,908,343* Quarterly financial results reports are exempt from audit conducted by certified public accountants or an
audit corporation.
* 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.

-3-

(Millions of yen)
As of March 31, 2020
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
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, net
Machinery, equipment and vehicles,net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

－

4

－

As of September 30, 2020

78,227141,279
3,514
62,35913,15439,282
21,975△1,124
358,669

111,471
120,638962,076
13,661
39,882
19,250△690
366,300

84,33988,793

81,07978,962

74,419239,838

71,105
238,861

5,293
5,303
10,597

5,104
5,114
10,219149,158
14,111△640
162,628
413,063771,733

152,358
15,379△556
167,182
416,262
782,563(Millions of yen)
As of March 31, 2020
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Income taxes payable
Provisions
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
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

－

5

－

As of September 30, 2020

70,77633,98010,000
5,539
6,003
37,275
163,574

60,391
38,67810,0003,041
6,240
30,414
148,766－
29,043
3,527
9,333
3,560
14,55260,016
223,591

20,00027,286
1,760
9,515
3,581
15,42877,571
226,338

41,97034,234
439,701△21,600
494,306

41,97034,336446,678△21,558
501,425

7,789

10,104

4△6,701△2,877△0△7,426△2,784△1,785△105

55,619548,141
771,733

54,904556,225
782,563(Millions of yen)Six months ended
September 30, 2019
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
Rental expenses
Share of loss of entities accounted forusing equity method
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of investment securities
Gain on sales of non-current assets
Gain on step acquisitions
Insurance claim income
Total extraordinary income
Extraordinary losses
loss compensation
Accident loss
Loss on disposal of non-current assets
Total extraordinary losses
Profit before income taxes
Income taxes
ProfitProfit attributable to non-controllinginterests
Profit attributable to owners of parent

－

6

－

Six months ended
September 30, 2020

303,369
239,632
63,73747,702
16,034

266,637
206,378
60,25845,88814,370

291
1,646

177
1,843

－

1,702

2,178
4,116

1,554
5,277

473
804
764

389
751
666

3,865

－

2,553
8,460
11,6901,297
3,105
16,541

1,501
－
1,016
564
3,082

1,279
257
－
－
1,536

－
187
174
362
14,411
4,508
9,902

308
－
－
308
17,7702,347
15,423

1,754

1,167

8,147

14,255

(Millions of yen)Six months ended
September 30, 2019
ProfitOther comprehensive income
Valuation difference on available-forsale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans,
net of tax
Share of other comprehensive income ofentities accounted for using equity
methodTotal other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable to noncontrolling interests

－

7

－

Six months ended
September 30, 2020

9,902

15,423△1,7962,407△3△3,858

△5
△742

△181

150

1,287

△779

△4,5525,350

1,030
16,454

4,743

15,935607

518

(Millions of yen)Six months ended
September 30, 2019
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
Loss (gain) on step acquisitions
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 sales of short-term andlong-term investment securities
Loss (gain) on valuation of short-termand long-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 (andother officers)
Increase (decrease) in provision for loss
on guarantees
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

－

8

－

Six months ended
September 30, 2020

14,411
14,407

17,77015,164

401

165

192

186

3,865

△1,702△1,016
△564

－
△9

△32

△505

33

371

△1,937473△2,020389△1,501△1,27924229

12,044
6,397△12,465

20,173△1,150△9,907

1,605△1,187

△378

△220

92

－

△5,04531,0071,917△399
36,067
2,003

9,886

2,152

△490
△4,221564△384△6,773
938,66333,075

(Millions of yen)Six months ended
September 30, 2019
Cash flows from investing activities
Purchase of non-current assets
Proceeds from sales of non-current assets
Purchase of investment securities
Proceeds from sales of investment
securities
Loan advances
Collection of loans receivable
Proceeds from purchase of shares ofsubsidiaries resulting in change in scopeof 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 sales of treasury shares
Dividends paid
Dividends paid to non-controllinginterests
Payments from changes in ownershipinterests in subsidiaries that do not
result in change in scope of
consolidation
Other, net
Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash andcash 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

－

9

－

Six months ended
September 30, 2020

△21,677
157△1,083△15,334
766△2,405

2,740

2,171

△208
320

△2,175
223

2,408

－

△4,568208△21,911△16,546△8,014556

2,347△4,625－△3,732－△7,477

5,797△2,86920,000△1
0△7,279△1,025△1,058

△841

△100

△222

△239

△23,592

14,805△1,850△1,280△8,69030,05380,37970,043258－

71,947100,097

Segment Information

Net sales
Basic
Chemicals
Specialty
Chemicals
Other and
Adjustment
Operating profit
Basic
Chemicals
Specialty
Chemicals
Other and
Adjustment
Non-operating profit
Ordinary profit
Basic
Chemicals
Specialty
Chemicals
Other and
Adjustment
Extoraordinary income
and loss, net
Income before income taxes,
etc.
Profit attributable to owners ofparent(Billions of yen, rounded down)
FY20191H

FY2020
1H

ChangeFY2019Full Year
ResultFY 2020
Full Year
Forecast

303.3

266.6

(36.7)

613.3

550.0

181.4

141.2

(40.2)

363.8

296.0

125.0

124.0

(0.9)

255.9

255.2

(3.1)

1.3

4.5

(6.4)

(1.3)

16.0

14.3

(1.6)

34.2

29.0

7.1

0.4

(6.6)

11.2

3.9

10.0

15.3

5.2

25.5

27.8

(1.2)

(1.4)

(0.2)

(2.5)

(2.7)

(4.3)
11.6

2.1
16.5

6.5
4.8

(3.1)
31.1

1.0
30.0

0.9

1.5

0.6

4.7

4.3

11.7

15.9

4.1

28.1

27.6

(1.0)

(0.9)

0.0

(1.8)

(1.9)

2.7

1.2

(1.4)

3.2

1.0

14.4

17.7

3.3

34.3

31.0

8.1

14.2

6.1

21.1

24.0

FY20191H

FY2020
1H

ChangeFY2019Full Year
ResultFY 2020
Full Year
Forecast

303.3

266.6

(36.7)

613.3

550.0

79.1

64.5

(14.5)

163.7

134.8

103.1

80.2

(22.8)

201.1

161.2

99.4

96.6

(2.7)

202.0

200.2

26.2

29.0

2.8

54.8

54.9

(4.6)

(3.9)

0.6

(8.4)

(1.3)

16.0

14.3

(1.6)

34.2

29.0

(0.5)

(2.6)

(2.0)

0.1

(3.3)

7.7

3.1

(4.5)

11.1

7.2

8.0

10.3

2.3

19.9

19.6

2.0

5.0

2.9

5.6

8.2

(1.2)

(1.4)

(0.2)

(2.5)

(2.7)

(4.3)

2.1

6.5

(3.1)

1.0

【reference】*

Net sales
Natural Gas
Chemicals
Aromatic
Chemicals
Specialty
Chemicals
Information andAdvanced
Other and
Adjustment
Operating profit
Natural Gas
Chemicals
Aromatic
Chemicals
Specialty
Chemicals
Information andAdvanced
Other and
Adjustment
Non-operating profit
Ordinary profit

11.6
16.5
4.8
31.1
30.0
Natural Gas
(6.4)
(1.5)
4.8
(5.7)
(2.1)
Chemicals
Aromatic
7.3
3.0
(4.2)
10.4
6.4
Chemicals
Specialty
9.4
10.6
1.1
22.3
19.1
Chemicals
Information and
2.3
5.2
2.9
5.8
8.4
Advanced
Other and
(1.0)
(0.9)
0.0
(1.8)
(1.9)
Adjustment*The figures for FY2020 are reference figures that have been simply rearranged for comparison
with the new segment.

10Other Information 1
Investments(Billions of yen)
Depreciation &amortization(Billions of yen)
R&D expenditures(Billions of yen)

Full year

35.0

30.9

39.2

FY2020
Forecast
42.3
45.0

1H

13.7

13.9

18.6

22.4

Full year

25.6

27.0

27.4

29.5

31.0

1H

12.2

13.1

13.5

14.4

15.1

Full year

19.2

18.9

18.6

19.6

20.5

1H

9.6

9.5

9.1

9.4

9.8

Number of Staff

Year-end

8,034

8,009

8,276

8,954

9,279

ROA (Ordinary income)

8.4%

10.6%

8.7%

3.9%

3.8%

ROE (Net income)

12.0%

13.6%

11.3%

4.3%

4.8%

FY2016FY2017FY2018FY201915.8

Other Information 2
FY2016
ResultFirst
Secondhalf
half

FY2017
ResultFirst
Secondhalf
half

FY2018ResultFirst
Secondhalf
half

FY2019ResultFirst
Secondhalf
half

FY2020Result Forecast
SecondFirst half
half

Exchange Rate
(JPY/USD, Average)

105

112

111

111

110

112

109

109

107

105

Exchange Rate
(JPY/EUR, Average)

118

119

126

133

130

127

121

120

121

120

crude oil (Dubai)(USD/BBL)

43

51

50

62

73

65

64

56

37

50

Methanol (USD/MT,
Asian average spot
price)

230

327

296

381

408

335

277

245

194

240

Mixed Xylene(USD/MT)

660

680

650

725

845

730

705

640

420

490

Bisphenol A(USD/MT)*

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

2,200～2,5002,400～2,8002,500～2,9002,900～3,9002,700～3,8002,100～2,8001,900～2,2501,650～2,0001,500～2,1501,700～2,500*Describe the minimum and maximum values during the period11Qualitative Information
Consolidated Business Results for This Period
Overview of Results(Billions of yen)
FY2019 / 1H

FY2020 / 1H

ChangeNet sales

303.3

266.6

(36.7)

Operating income

16.0

14.3

(1.6)

Ordinary income

11.6

16.5

4.8

Net income attributable to owners of the parent

8.1

14.2

6.1

During the first six months of the fiscal year ending March 2021 (April 1 – September 30, 2020), theworld economy remained harsh as economic activities were restricted due to the fallout from the novel
coronavirus pandemic. Meanwhile, the Japanese economy advanced as restrictions were graduallylifted, with recent economic indicators showing encouraging signs, but the outlook for the future continues
to be unclear.
Against this backdrop, the MGC Group nevertheless saw consistently strong demand for its
semiconductor-related products and optical polymers. However, demand for such offerings as
automotive-related products fell due to the novel coronavirus pandemic, while market prices remainedsluggish for general-purpose products, such as methanol, polycarbonates and purified isophthalic acid.
As a result, the MGC Group’s net sales decreased year on year due primarily to a drop in the sales
volume of aromatic chemicals, foamed plastics and engineering plastics, in addition to the lower market
prices of general-purpose products.
Group operating income also fell year on year, despite growth in the sales volume of optical polymers
and semiconductor-related products, lower raw material and fuel prices, a decrease in selling, generaland administrative expenses, and other positive factors contributing to profit. This was mainly due to thedecline in the sales volume of aromatic chemicals, foamed plastics and engineering plastics as well as the
sluggish market prices of general-purpose products.
However, ordinary income increased, despite the decline in operating income, thanks to improvement inequity in earnings of affiliates related to overseas methanol producing companies, reflecting the absenceof one-off costs (¥7.8 billion) recorded in the same period of the previous fiscal year in connection with ajoint venture in Saudi Arabia.
Net income attributable to owners of the parent grew significantly due mainly to the increase in ordinary
income and a decrease in tax-related expenses.
Operating results by segment are as described below.
In addition, the MGC Group revised the definition of its reportable segments in the first quarter of the
fiscal year ending March 31, 2021. To provide comparative year-on-year segment results, the Group has
restated the operating results of the first quarter of the previous fiscal year to reflect the revised
segmentation.
12

Results by Business Segment
Basic Chemicals(Billions of yen)
FY2019 / 1H

FY2020 / 1H

Change

Sales

178.1

137.6

(40.5)

Operating income

7.1

0.4

(6.6)

Ordinary income

0.9

1.5

0.6

The methanol business saw a decline in net sales due to a decrease in market prices compared with thesame period of the previous fiscal year.
Methanol and ammonia-based chemicals posted a decrease in earnings compared with the same periodof the previous fiscal year, despite lower raw material prices, due mainly to a decline in market prices of
MMA-based products and an increase in repair costs.
Specialty aromatic chemical products posted a decrease in earnings due to lower meta-xylenediaminedemand for housing-related and other applications, despite solid sales of aromatic aldehydes.
General-purpose aromatic chemical products suffered decreases in net sales and earnings comparedwith the same period of the previous fiscal year. This was, despite lower raw material and fuel prices,
mainly attributable to sluggish sales volumes of purified isophthalic acid and meta-xylene, as well as
lower sales prices of these offerings.
Foamed plastics posted decreases in both net sales and earnings compared with the same period of theprevious fiscal year, with the positive effects of growing product demand associated with food packaging
and civil engineering being offset by lower demand in the automotive industry and sluggish production
due to the enforcement of urban lockdowns in some countries.

Specialty Chemicals(Billions of yen)
FY2019 / 1H

FY2020 / 1H

Change

Sales

124.8

123.8

(0.9)

Operating income

10.0

15.3

5.2

Ordinary income

11.7

15.9

4.1

Inorganic chemicals posted an increase in earnings compared with the same period of the previous
fiscal year thanks primarily to growth in the sales volume of chemicals for use in semiconductor
manufacturing.
Net sales and earnings from engineering plastics both declined from the same period of the previous
fiscal year. This was mainly attributable to a decrease in demand for such products as those used forautomotive applications, in addition to a year-on-year decline in market prices for polycarbonates.
13

Optical materials posted increases in net sales and earnings due to the growing use of multiple camera
lenses in smartphones 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 volumeof BT materials for semiconductor 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 AGELESSTM posted earnings on par with the same period of the previous
fiscal year, despite a decline in demand for offerings used in souvenirs and other tourism-related products,
thanks mainly to a solid volume of exports.
(End)

14