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 8, 2023

Summary of Consolidated Financial Results for the Six Months Ended
September 30, 2023 (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 to file quarterly securities report:
November 13, 2023
Scheduled date to commence dividend payments:
December 6, 2023
Presentation of supplementary material on quarterly financial results: Yes(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the six months ended September 30, 2023 (from April 1, 2023 to
September 30, 2023)(1) Summary of consolidated income statement (cumulative)
Net sales
Six months ended
September 30, 2023
September 30, 2022Note:

Operating profit

Millions of yen% Millions of yen

399,652
394,909

1.2
17.6

22,10333,524Six months ended
September 30, 2023
September 30, 2022

Profit attributable toowners of parent

Ordinary profit% Millions of yen(34.1)
11.6

Comprehensive income Six months ended September 30, 2023
Six months ended September 30, 2022
Basic earnings pershare(Percentages indicate year-on-year changes.)

24,94749,928¥58,240 million¥60,439 million% Millions of yen(50.0)
28.8

31,23534,269%(8.9)
21.6[(3.6)%][77.3%]

Diluted earnings per
shareYen

Yen

152.67166.33––(2) Consolidated financial position
Total assets
As ofSeptember 30, 2023
March 31, 2023
Reference:Equity
As of September 30, 2023
As of March 31, 2023

Net assets

Equity ratio

Millions of yen

Millions of yen

1,163,009
1,029,317

727,423
671,249¥651,232 million¥607,613 million- 1 -%

56.0
59.0

2. Dividends
Annual dividend
First quarter-end

Second quarter-end

Third quarter-end

YenYenYen

Fiscal year ended
March 31, 2023

–40.00Fiscal year
ending March 31,2024–

40.00

Fiscal year
ending March 31,2024 (Forecast)
Note:

Fiscal year-endTotalYenYen–

40.00

80.00

–

40.00

80.00

Revisions to the forecast most recently announced: None

3. Consolidated business forecasts for the fiscal year ending March 31, 2024 (from April 1, 2023 toMarch 31, 2024)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
March 31, 2024
Note:

Operating profit

Profit attributable toowners of parent

Ordinary profit

Basicearnings pershare

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Yen

840,000

7.5

46,000(6.2)

49,000(29.8)

47,000(4.2)

232.56

Revisions to the forecast most recently announced: None- 2 -* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(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 issued shares (common stock)(i) Number of issued shares at term end (including treasury stock)
As of September 30, 2023

222,239,199

As of March 31, 2023

222,239,199(ii) Number of shares of treasury stock at term-end
As of September 30, 2023

17,628,335

As of March 31, 2023

17,660,740(iii) Average number of outstanding shares (cumulative from the beginning of the fiscal year)
Six months ended September 30, 2023

204,591,758

Six months ended September 30, 2022

206,031,885* Quarterly financial results reports are exempt from audit conducted by certified public accountants or anaudit corporation.
* 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 quarterly financial results)
The supplementary material on quarterly financial results is disclosed on the same day as this quarterly
financial results report, and it is made available on the Company’s website.

- 3 -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, 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, 2023

108,378

119,392

176,626

198,55493
89,36722,331
66,444
20,775△767
483,249

88
126,395
22,321
72,226
26,799△742
565,035

102,143
87,890123,733
313,767

107,347
96,970147,153
351,471

4,425
7,555
11,98020,366
8,448
28,815200,101
22,141△1,922
220,320
546,068
1,029,317

196,024
23,724△2,061
217,687
597,973
1,163,009

(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provisions
Other
Total current liabilities
Non-current liabilities
Bonds payableLong-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, 2023

88,342
47,913
5,274
6,714
72,197
220,442

117,716
67,1336,439
7,286
90,006
288,582

20,00074,680
3,383
4,453
5,272
29,835
137,625
358,068

20,00077,700
3,011
5,844
5,380
35,066
147,003435,586

41,97034,293
521,426△23,838
573,852

41,97035,521
544,478△23,795
598,175

8,950

11,919110
22,8941,805△1039,758
1,389

33,76053,05763,636671,249
1,029,317

76,190727,423
1,163,009

2. Consolidated Statements of Income(Millions of yen)Six months ended
September 30, 2022
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted forusing equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Personnel expenses for seconded employees
Share of loss of entities accounted forusing equity method
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on step acquisitions
Gain on sale of investment securitiesSubsidy income
Reversal of provision for businessrestructuring
Gain on recovery of money transfer scam atsubsidiary
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Loss on tax purpose reduction entry of noncurrent assets
Provision of allowance for doubtful accounts
Provision for land maintenance expenses
Loss on valuation of shares of subsidiaries
and associates
Impairment losses
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, 2023

394,909
301,734
93,174
59,64933,524

399,652
313,231
86,42164,317
22,103

320
1,967
4,927

1,192
2,466
2,520

10,605－

1,411
19,231

1,263
7,443

752
943

1,519
702

－

1,016

1,132
2,828
49,928

1,360
4,598
24,947－390－

15,085
2,830
377－

105

110

－

500

18,399

149

307－

244

150
273

100
－

178

－

108
860
49,56812,27737,291－651
42,694
7,328
35,366

3,021

4,131

34,26931,235

(Consolidated Statements of Comprehensive Income)(Millions of yen)Six months ended
September 30, 2022
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-7-

Six months ended
September 30, 2023

37,29135,366△1,438

3,089

△62
13,591△360
13,660△254△280

11,313

6,765

23,14860,43922,87358,24054,03250,518

6,406

7,722

3. Consolidated Statement of Cash Flows(Millions of yen)Six months ended
September 30, 2022
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
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)
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, 2023

49,56816,12742,694
18,373

370

830

201

969

△10,605

1,016

222

△30

△71

76

△2,287752△3,6591,519△402△2,830243－△1,576△13,849△6,970△15,085
25,392△4,823△19,691△1,515

1,330

△50

△106

△14,455
15,4592,479△8,13537,884
3,641

8,272

3,219

△664
△12,1976△1,505△6,32314

13,35536,929(Millions of yen)Six months ended
September 30, 2022
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 ofconsolidation
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
Purchase of treasury shares
Proceeds from sale of treasury shares
Dividends paid
Dividends paid to non-controlling interests
Other, netNet 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 ofperiod
Increase 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, 2023

△32,41153△462518△1,526102△37,614
126
△128
4,486
△1,67529－

11,894

2,908

3,569

△30,817△19,312△4,662△15,180

29,360△3,646△7,081
0△7,281△1,358△354

6,390△6,027△2－△8,183△3,464
9,702

4,974

△16,765

9,943

6,326

△2,543

7,178

92,257101,185

2,041－

91,756108,363

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

FY2022/1H

FY2023/1H

ChangeNet sales

394.9

399.6

4.7

Operating profit

33.5

22.1

(11.4)

Equity in earnings of affiliates

10.6(1.0)(11.6)

Ordinary profit

49.9

24.9(24.9)

Profit attributable to owners of parent

34.2

31.2

3.0

During the first six months of the fiscal year ending March 31, 2024 (April 1, 2023 – September 30, 2023), theglobal economy was negatively affected by such factors as ongoing monetary tightening undertaken by financial
authorities in the United States, Europe and other major countries, along with lingering economic stagnation inChina. Reflecting this, the pace of global economic recovery has been slower than expected. 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 the recent
outbreak of tensions in the Middle East. These factors have, in turn, made it challenging to formulate the future
economic outlook.
Against this backdrop, the MGC Group has embarked on the final year of its medium-term management plan
launched in April 2021. In line with this plan, the Group has continued to pursue a 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,” and•“Reevaluate and rebuild unprofitable businesses.”
These efforts will help push ahead with business portfolio reforms.
As a result, the Group’s net sales increased, with downturns in methanol and ammonia market prices, lower sales
volumes of aromatic chemicals and electronic materials, and other negative factors being more than offset bypositive effects arising from the inclusion of Mitsubishi Engineering-Plastics Corporation into the scope ofconsolidation and the depreciation of the yen.
On the other hand, operating profit decreased, despite the depreciation of the yen and other positive factors, due
mainly to stagnant polyacetal market prices in contrast with robust market prices seen in the same period of theprevious fiscal year, as well as an overall decline in sales volumes of aromatic chemicals, methanol and ammoniabased chemicals, electronic materials, and other offerings.
Ordinary profit declined, reflecting downturns in methanol market prices and a resulting decrease in equity inearnings of affiliates related to overseas methanol producing companies as well as lower operating profit. Other
negative factors affecting ordinary profit included the absence of non-operating income recorded in the same period- 10 -

of the previous fiscal year through the reversal of deferred 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 ofMitsubishi 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)

FY2022/1H

FY2023/1H

ChangeNet sales

233.0

205.6

(27.3)

Operating profit

14.4

9.4(4.9)

Ordinary profit

20.8

7.4(13.4)

The methanol business saw decreases in both net sales and earnings due to lower market prices compared withthe same period of the previous fiscal year.
Methanol and ammonia-based chemicals posted decreases in both net sales and earnings, reflecting the lowersales volume of MMA products and downturns in market prices for ammonia and other offerings.
High-performance products posted decreases in both net sales and earnings, due mainly to lower sales volumesof meta-xylenediamine and aromatic aldehydes, which reflected economic slowdown in the United States andEurope and resulting stagnation in demand.
Xylene separators and derivatives saw decreases in both net sales and earnings due primarily to a decline inmarket prices for purified isophthalic acid (PIA).
However, foamed plastics posted increases in both revenues and earnings thanks mainly to sales growth in stepwith the upward revision of product prices and the success of cost reduction measures.
Specialty Chemicals(Billions of yen)

FY2022/1H

FY2023/1H

ChangeNet sales

161.8

193.9

32.0

Operating profit

20.3

14.2

(6.1)

Ordinary profit

25.3

17.8

(7.4)

Inorganic chemicals posted a decrease in net sales due mainly to stagnant semiconductor demand and resulting
decline in the sales volume of chemicals for use in semiconductor manufacturing. However, earnings from theseproducts remain virtually unchanged from the same period of the previous fiscal year, thanks to the upward revisionof sales prices aimed at reflecting higher raw material and fuel prices as well as growing transportation costs.
Engineering plastics saw an increase in net sales and a decrease in earnings. While the increase in sales was- 11 -

attributable to the inclusion of Mitsubishi Engineering-Plastics Corporation into the scope of consolidation,
earnings declined due mainly to downturns in polyacetal market prices.
Optical materials posted decreases in net sales and earnings as demand for smartphones, a primary application of
optical polymers, remained below the level seen in the same period of the previous fiscal year despite a recent trend
toward recovery on the back of the commencement of production of new models in the second quarter.
Electronic materials saw decreases in net sales and earnings, with demand for BT materials for IC plastic
packaging, the core product category for electronic materials, staying below the level seen in the same period of theprevious fiscal year, even though demand for smartphone-related materials and other offerings returned to arecovery track.
Oxygen absorbers such as AGELESSTM posted decreases in net sales and earnings on the back of a recoil fromthe temporary surge (due to stay-at-home demand) for products marketed in Japan for food applications, a decline
in export sales, higher raw material prices and other factors.

- 12 -