February 8, 2022
MITSUBISHI GAS CHEMICAL COMPANY, INC.

Notice regarding the Additional Acquisition of Shares in
Mitsubishi Engineering-Plastics Corporation to Make It a Consolidated Subsidiary
Mitsubishi Gas Chemical Company, Inc. (MGC) hereby announces that its Board of Directors passed a resolution ata meeting held today with regard to a decision to acquire an additional 25% equity stake in Mitsubishi EngineeringPlastics Corporation (MEP), an equity-method affiliate of MGC, and make it a consolidated subsidiary on April 3,
2023.
MGC also announces that, in conjunction with this move, THAI POLYCARBONATE CO., LTD., an equity-method
affiliate of MGC, will become a consolidated subsidiary of MGC as MEP currently holds a 60% equity stake in thisaffiliate.

1. Reasons for Acquiring Shares in MEP
In line with a medium-term management plan launched in April 2021, the MGC Group aims to shift to a profit structure
resilient to changes in the business environment, to this end pushing ahead with business portfolio reforms. In
particular, the Group has positioned its polycarbonate (PC)-related businesses as “foundation businesses” andintends to raise their profitability by strengthening their focus on delivering high-value-added solutions.
PC is a versatile engineering plastic that is widely used in a range of fields, such as electric, electronics and officeautomation equipment as well as automobiles. Its applications also encompass films and sheets, including thoseused in medical appliances. With the PC market showing a steady growth (3% to 5% on the annual average), theGroup expects PC demand to remain stable. In recent years, however, the construction of new PC plants has beenongoing in China, home to the world’s largest PC market, causing the business environment to be engulfed byincreasingly intensive competition. Given these circumstances, the MGC Group believes that for the Group to raise
the profitability of its PC-related operations, it must push ahead further with the development and marketing of highvalue-added products, which are resilient to changes in market conditions and capable of better positioning MGC toexert competitive advantage.
Founded in 1994 as a 50:50 joint venture by MGC and Mitsubishi Chemical Corporation, MEP has developed arobust business network encompassing 27 bases in Japan and overseas while delivering technical services that
employ a meticulous, customer-centric approach as well as a broad range of products designed to accommodate
customer needs. Thanks to these efforts, MEP commands more than 10% of the global PC market share and ranks
third as a PC sales company among its peers worldwide.
Once MEP is made a consolidated subsidiary, the MGC Group will take full advantage of the former’s technicalservice capabilities, marketing functions and other management resources. For example, through this move the MGC
Group will be positioned to better utilize quality-based advantages of PC derived from the interfacial method, in which
the Group boasts strength. In these and other ways, the Group will accelerate its strategic efforts to increase the1proportion of high-value-added products in its portfolio and raise the competitiveness of PC-related businesses.
In addition, as of April 3, 2023, MEP’s operations related to polybutylene terephthalate and a part of its PC-related
businesses will be transferred to Mitsubishi Chemical. At the same time, MEP’s operations related to polyacetal
resins, polyphenylene ether resins and high-performance polyamide resin compounds will be merged into the MGC
Group via an absorption-type company split. Thus, MEP is expected to focus on the development, manufacture andmarketing of PC products.

2. Details of Equity-Method Affiliates to Be Made Subsidiaries(1)

Company name

Mitsubishi Engineering-Plastics Corporation(2)

Location

1-9-2, Higashi-shinbashi, Minato-ku, Tokyo, Japan(3)

Name/title ofrepresentative

Takashi Komaya, Representative Director(4)

Business description

Sale of engineering plastics(5)

Capital stock

JPY3,000 million(6)

Date of foundation

March 1994

Major shareholders(7)

and ratio of theirshareholdings

Relationships
between the listed(8)

company and theequity-method
affiliate(9)

Mitsubishi Gas Chemical Company, Inc.: 50%
Mitsubishi Chemical Corporation: 50%
Capital

MGC holds a 50% equity stake in the equity-method

relationships

affiliate.
Some MGC employees concurrently serve as

Personnel

directors and corporate auditors at the equity-method

relationships

affiliate and are otherwise seconded to work for said
affiliate.

Transactional

The equity-method affiliate engages in the sale ofrelationships

engineering plastics produced by MGC.

Financial position and operating results of the equity-method affiliate for the past three years(Millions of yen)
Years ended March 31,

2019

2020

2021

Net assets

21,024

15,203

14,938

Total assets

62,92355,291

56,366

Net sales

104,338

91,76686,247

Operating income

1,688

- 658

- 2,291

Ordinary income

11,032

2,283

936

Net income

9,703

1,979

665

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Reference: Simple sum of financial position and operating results of the equity-method affiliate(10)

and THAI POLYCARBONATE CO., LTD.
(Millions of yen)

Net assets

32,57826,991

26,467

Total assets

94,882

83,79988,941

Net sales

156,488

130,851

123,235

Operating income

10,582

2,051

- 482

Ordinary income

20,811

5,181

3,225

Net income

17,631

4,363

2,524

Note: Due to the absence of indicators for consolidating the equity-method affiliate, the above figures represent the simple
sum of non-consolidated financial position and operating results of said affiliate and THAI POLYCARBONATE CO., LTD.
In addition, 1 THB is converted into JPY3.5.

(1)
(2)

(3)

Company name

THAI POLYCARBONATE CO., LTD.

Location

Emporium Tower, Floor 24/4-8 622 Sukhumvit Road, Klongton
Klongtoey, Bangkok 10110, Thailand

Name/title ofrepresentative

Akira Mori, Representative Director(4)

Business description

Manufacture and sale of polycarbonate resins(5)

Capital stock

THB 1,000 million(6)

Date of foundation

May 1996

Major shareholders and(7)

ratio of theirshareholdings

Relationships between(8)

Mitsubishi Engineering-Plastics Corporation: 60%
TOA DOVECHEM INDUSTRIES CO., LTD.: 30%
Mitsubishi Gas Chemical Company, Inc.: 5%
Mitsubishi Chemical Corporation: 5%
Capital

MGC holds a 5% equity stake in the equity-method

relationships

affiliate.

the listed company andPersonnel

the equity-method

relationships

affiliate

Some MGC employees concurrently serve as
directors at the equity-method affiliate and areotherwise seconded to work for said affiliate.

Transactional

MGC offers its polycarbonate resin manufacturing

relationships

technologies to the equity-method affiliate.

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Financial position and operating results of the equity-method affiliate for the past three years(9)(Millions of THB)
Years ended March 31,

2019

2020

2021

Net assets

3,301

3,368

3,294

Total assets

9,131

8,145

9,307

Net sales

14,90011,167

10,568Operating income

2,541

774

517

Ordinary income

2,794

828

654

Net income

2,265

681

531

3. Overview of the Transferrer of the Equity Stake(1)

Company name

Mitsubishi Chemical Corporation(2)

Location

1-1 Marunouchi 1-chome, Chiyoda-ku, Tokyo, Japan(3)

Name/title ofrepresentative

Masayuki Waga, Representative Director(4)

Business description

Manufacture and sale of chemical products(5)

Capital stock

JPY53,229 million

Date of foundation

August 31, 1933 (founding of the earliest precursor)(6)

April 1, 2017 (merged into the current form)(7)

Net assets

JPY578,758 million (non-consolidated basis)(8)

Total assets

JPY1,414,314 million (non-consolidated basis)

Major shareholder(9)

and ratio of

Mitsubishi Chemical Holdings Corporation: 100%

shareholdings

Relationships(10)

between the listedcompany and thetransferrer

Capital

MGC holds 1,370,500 shares (equivalent to a 0.09%

relationships

equity stake) in the transferrer.

Personnel

There are no notable personnel relationships between

relationships

MGC and the transferrer.

Transactional

There are transactional relationships involving

relationships

products and raw materials between MGC and thetransferrer.

Status of

The transferrer is not considered a related party ofclassification

MGC. Also, the affiliated persons and affiliatedas relatedcompanies of the transferrer are not consideredparties

related parties of MGC.

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4. Number of Shares to Be Acquired, Their Acquisition Price and Status of Shareholdings after theAcquisition
(1)

(2)
(3)
(4)

Number of shares held
before acquisition
Number of shares to be
additionally acquired
Acquisition price
Number of shares held
after acquisition

30,000 shares (voting rights ratio: 50%)

15,000 shares (voting rights ratio: 25%)
Not disclosed due to confidentiality agreement with the transferrer
45,000 shares (voting rights ratio: 75%)

5. Schedule(1)

Date of the Board of
Directors’ resolution(2)

February 8, 2022

Date of the signing of
the share transfer

February 8, 2022

agreement(3)

Date of the sharetransfer

April 3, 2023 (planned)

6. Outlook
The impact of this move on MGC’s consolidated operating results and financial position for the fiscal year ending
March 31, 2022, is minor.

END

Investor Relations Department MITSUBISHI GAS CHEMICAL COMPANY, INC.
TEL: +81-3-3283-5041 https://www.mgc.co.jp/eng/

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