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.

August 7, 2023

Summary of Consolidated Financial Results for the Three Months Ended
June 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:
August 10, 2023
Scheduled date to commence dividend payments:–
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 three months ended June 30, 2023 (from April 1, 2023 toJune 30, 2023)(1) Summary of consolidated income statement (cumulative)
Net sales
Three months ended
June 30, 2023
June 30, 2022
Note:

Operating profit

Millions of yen% Millions of yen

187,008
193,982

(3.6)
21.2

6,211
18,844Three months ended
June 30, 2023
June 30, 2022

Profit attributable toowners of parent

Ordinary profit% Millions of yen(67.0)
28.9

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

7,025
24,884¥31,831 million¥30,611 million% Millions of yen(71.8)
34.5

19,844
16,113%23.2
12.3[4.0%][81.0%]

Diluted earnings pershare

Yen

Yen

97.00
77.73

––(2) Consolidated financial position
Total assets
As ofJune 30, 2023
March 31, 2023
Reference:

EquityAs of June 30, 2023
As of March 31, 2023

Net assets

Equity ratio

Millions of yen

Millions of yen

1,109,722
1,029,317

703,457
671,249¥629,750 million¥607,613 million- 1 -%

56.7
59.0

2. Dividends
Annual dividend
First quarter-end

Second quarter-end

Third quarter-end

Yen

Yen

Yen

Fiscal year ended
March 31, 2023
Fiscal year
ending March 31,2024–

TotalYen

Yen

40.00

–

40.00

80.00

40.00

–

40.00

80.00

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

Fiscal year-end

Revisions to the forecast most recently announced: No

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

Six months ending
September 30,2023 (cumulative)
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%

Yen380,000(3.8)

14,000(58.2)

16,000(68.0)

25,000(27.0)

122.19840,000

7.5

46,000(6.2)

49,000(29.8)

47,000(4.2)

229.71

Revisions to the forecast most recently announced: Yes- 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 June 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 June 30, 2023

17,661,473

As of March 31, 2023

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

204,578,056

Three months ended June 30, 2022

207,311,458* 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 June 30, 2023

108,378

97,264

176,626

186,456

93
89,367
22,331
66,444
20,775△767
483,249

56
126,331
20,201
72,39028,338△711
530,327

102,143
87,890123,733
313,767

106,527
95,431
133,629
335,588

4,425
7,555
11,98020,246
8,393
28,639200,101
22,141△1,922
220,320
546,068
1,029,317

193,692
23,446△1,973215,165
579,394
1,109,722

(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provisions
OtherTotal 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 comprehensiveincome
Non-controlling interests
Total net assetsTotal liabilities and net assets-5-

As of June 30, 2023

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

102,965
69,655
3,976
4,449
77,960259,007

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

20,00079,297
2,921
5,943
5,368
33,727
147,257
406,264

41,97034,293
521,426△23,838
573,852

41,97035,496
533,088△23,839586,715

8,950

10,298110
22,894
1,805

58
30,996
1,681

33,76043,03463,636671,249
1,029,317

73,707
703,457
1,109,722

2. Consolidated Statements of Income(Millions of yen)Three months ended
June 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 securities
Reversal of provision for businessrestructuring
Total extraordinary income
Extraordinary losses
Provision for land maintenance expenses
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-

Three months ended
June 30, 2023

193,982
145,501
48,48029,636
18,844

187,008
149,446
37,561
31,350
6,211

118
1,605
2,720

288
1,037
1,248

2,276－

678
7,399

609
3,184

320
531

589429－

667

507
1,359
24,884682
2,369
7,025－
275

15,0852,189－

148275

17,422255
146
402
24,756
7,106
17,650－－－24,4483,227
21,220

1,536

1,375

16,113

19,844

(Consolidated Statements of Comprehensive Income)(Millions of yen)Three months ended
June 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 tax
Share 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-

Three months ended
June 30, 2023

17,65021,220△1,220

1,453

20
7,803

△170
6,577

△134

△108

6,492

2,861

12,961
30,611

10,611
31,831

27,187

29,105

3,423

2,726

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

FY2022/1Q

FY2023/1Q

ChangeNet sales

193.9

187.0(6.9)

Operating profit

18.8

6.2(12.6)

Equity in earnings of affiliates

2.2(0.6)(2.9)

Ordinary profit

24.8

7.0(17.8)

Profit attributable to owners of parent

16.1

19.8

3.7

During the first three months of the fiscal year ending March 31, 2024 (April 1, 2023 – June 30, 2023), theglobal economy was supported by the normalization of socio-economic activities along with such positive factors
as economic recovery from previous stagnation under the influence of the COVID-19 pandemic. On the other hand,financial authorities in the United States, Europe and other major countries maintained their monetary tightening
policies on the back of global inflation. This, in turn, resulted in a growing risk of economic downturn, causing theoutlook to remain unclear.
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.
Despite these efforts, however, the Group’s net sales decreased, due to downturns in methanol and ammonia
market prices, lower sales volumes of electronic materials and aromatic chemicals, and other negative factors
whose impact outpaced such positive factors as the recent inclusion of Mitsubishi Engineering-Plastics Corporation
into the scope of consolidation and the depreciation of the yen.
Operating profit similarly decreased, despite the depreciation of the yen and lower raw material and fuel prices
which together contributed to profit, due mainly to an overall decline in sales volumes of electronic materials,
aromatic chemicals and other offerings, along with stagnant polyacetal market prices.
Ordinary profit declined, reflecting such factors as downturns in methanol market prices and a resulting decreasein equity in earnings of affiliates related to overseas methanol producing companies as well as lower operating
profit.
However, profit attributable to owners of parent increased due primarily to the recording of gain on step
acquisitions in connection with the inclusion of Mitsubishi Engineering-Plastics Corporation into the scope ofconsolidation.
-8-Operating results by segment are as described below.
Results by Business Segment
Basic Chemicals(Billions of yen)

FY2022/1Q

FY2023/1Q

ChangeNet sales

115.1

99.8(15.2)

Operating profit

7.6

3.2

(4.4)

Ordinary profit

8.4

2.0(6.3)

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 in thesales volume of purified isophthalic acid (PIA) and growing utility costs.
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)

FY2022/1Q

FY2023/1Q

ChangeNet sales

78.8

87.1

8.2

Operating profit

12.0

3.5

(8.5)

Ordinary profit

14.5

4.7

(9.8)

Inorganic chemicals posted decreases in net sales and earnings, despite the upward revision of sales prices aimed
at reflecting higher raw material and fuel prices—a factor contributing to profit—due mainly to stagnant
semiconductor demand and resulting decline in the sales volume of chemicals for use in semiconductor
manufacturing.
Engineering plastics saw an increase in net sales and a decrease in earnings. While the increase in sales wasattributable to the inclusion of Mitsubishi Engineering-Plastics Corporation into the scope of consolidation,
earnings declined due mainly to downturns in polyacetal market prices and sales volumes of polycarbonates andpolycarbonate sheet films.
Optical materials posted decreases in net sales and earnings as demand for smartphones, a primary application of
optical polymers, remained sluggish.
-9-Electronic materials saw decreases in net sales and earnings compared with the same period of the previous fiscalyear. This reflected constantly stagnant demand for semiconductors, although sales level of BT materials for IC
plastic packaging, the core product category for electronic materials, have been on a recovery track since the fourth
quarter of the previous fiscal year, especially in general-purpose materials.
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.

- 10 -