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, 2020

Summary of Consolidated Financial Results for the Fiscal Year Ended
March 31, 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 of ordinary general meeting of shareholders: June 25, 2020
Scheduled date to commence dividend payments:
June 8, 2020
Scheduled date to file annual securities report:
June 25, 2020
(Yen amounts are rounded down to millions, unless otherwise noted.)

1. Consolidated financial results for the fiscal year ended March 31, 2020 (from April 1, 2019 toMarch 31, 2020)(1) Summary of consolidated income statement
Net sales
Fiscal year ended
March 31, 2020
March 31, 2019

Millions of yen

(5.5)
2.1

Reference:

34,26041,386% Millions of yen(17.2)(34.0)

Yen

100.50257.46Equity in earnings of affiliates
March 31, 2020
March 31, 2019

31,116
69,199Return on equity

Yen

–
–
¥ (1,282) million¥28,408 million-1-% Millions of yen(55.0)(14.3)¥13,988 million¥54,318 million

Net income
diluted per share

Net income attributableto owners of the parent

Ordinary income

March 31, 2020
March 31, 2019

Net income per
share
Fiscal year ended
March 31, 2020
March 31, 2019

Operating income% Millions of yen

613,344648,986

Note: Comprehensive income(Percentages indicate year-on-year changes.)

21,15855,000%(61.5)(9.1)[(74.2) %][(19.7) %]Ordinary
income/total
assetsOperatingincome/net sales

%

%

%

4.3
11.3

3.9
8.7

5.6
6.4

(2) Consolidated financial position
Total assets
As ofMarch 31, 2020
March 31, 2019
Reference:

Net assets

Equity ratio

Book value per share

Millions of yen

Millions of yen%

Yen

771,733
804,038

548,141
553,28263.8
62.6

2,368.11
2,354.25

Cash flow fromfinancing activities

Cash and cash
equivalents at end of
periodEquityMarch 31, 2020
March 31, 2019

¥492,521 million¥502,961 million(3) Consolidated cash flows
Cash flow fromoperating activities
Fiscal year ended
March 31, 2020
March 31, 2019

Cash flow frominvesting activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

74,23464,042(33,922)(42,761)(49,563)(31,396)

70,04380,3792. Dividends
Annual dividendFirst
quarterend
Fiscal year ended
March 31, 2019
March 31, 2020
Fiscal year ending
May 31, 2021
(Forecast)Secondquarterend

Third
quarterend

Yen

Yen

Yen

Yen

–
–

35.00
35.00

–
–

35.00
35.00

70.00
70.00

–

35.00

–

35.00

70.00

Fiscalyear-end

Total

Total
dividend
payment(total)Dividend
Dividend to
payout ratio net assets ratio(consolidated) (consolidated)

Yen Millions of yen

14,953
14,861

%

%

27.2
69.7

3.1
3.0

85.6

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

Six months ending
September 30,
2020 (cumulative)

270,000

Fiscal year ending
March 31, 2021

580,000

Operating income%(11.0)

Millions of
yen

8,000

%

(50.1)(Percentages indicate year-on-year changes.)
Net income
Net income
Ordinary income
attributable toper shareowners of the parent
Millions of
yen

6,000

%

(48.7)

Millions of
yen

4,000

%

Yen

(50.9)
19.23

(5.4)

27,000(21.2)-2-

26,000(16.4)

17,000(19.7)

81.74–

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in thechange in scope of consolidation): None
(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 shares outstanding (common stock)(i) Number of shares outstanding at term end (including treasury stock)
March 31, 2020

225,739,199

March 31, 2019

231,739,199(ii) Number of shares of treasury stock at term-end
March 31, 2020

17,758,765

March 31, 201918,099,472(iii) Average number of shares
March 31, 2020

210,529,901

March 31, 2019

213,630,153[Reference] Outline of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2020 (from April 1, 2019 toMarch 31, 2020)(1) Non-consolidated operating results(Percentages indicate year-on-year changes.)

Net sales
Fiscal year ended
March 31, 2020
March 31, 2019

Millions of yen

Operating income% Millions of yen

351,348
375,129(6.3)
2.9

Ordinary income% Millions of yen

17,26823,122(25.3)(26.1)Net income per share

Net income diluted per
share

Yen

Yen

139.33
162.39––Fiscal year ended
March 31, 2020
March 31, 2019

30,066
41,329Net income% Millions of yen(27.3)(23.7)

29,332
34,690%(15.4)(16.2)(2) Non-consolidated financial position
Total assets
As ofMarch 31, 2020
March 31, 2019
Reference:

EquityMarch 31, 2020
March 31, 2019

Net assets

Equity ratio

Book value per share

Millions of yen

Millions of yen%

Yen

425,713457,427

290,955
291,198

68.3
63.7

1,398.96
1,363.04¥290,955 million¥291,198 million-3-2. Non-consolidated business forecasts for the fiscal year ending March 31, 2021 (from April 1, 2020
to March 31, 2021)
Net sales

Operating income

Millions ofyen%Millions ofyen

Six months ending
September 30,
2020 (cumulative)

160,000

(6.7)

4,000

Fiscal year ending
March 31, 2021

340,000%(54.2)(Percentages indicate year-on-year changes.)
Net income
Ordinary income
Net income
per share
Millions of
yen

7,000

%

(65.1)

Millions of
yen

7,000

%

Yen

(64.3)
33.66

(3.2)

15,000(13.1)

20,000(33.5)

17,000(42.0)

81.74* These financial statements are exempt from audit procedure.
* Proper use of earnings forecasts, and other special matters(Caution concerning forward-looking statements)
1. 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 5.

-4-Outlook for FY2020
Looking at future economic trends, a strong sense of uncertainty prevails regarding the severity of
the impact of the novel coronavirus pandemic in Japan and elsewhere in the world, with current
conditions making it difficult to forecast when the spread of the virus can be contained.
With this in mind, MGC formulated its operating results forecasts for the fiscal year ending March
31, 2021, based on the assumption that the global economy will remain sluggish during the first half
due to the novel coronavirus pandemic and that in the second half the economy will be on a recovery
track.
Although the negative factors described above may impact consolidated operating results, MGC
nevertheless believes that electronic materials and optical polymer will not be significantly affected asthese operations have been supported by solid demand throughout the fiscal year ended March 31,
2020. On the other hand, MGC anticipates an overall demand decline in a broad range of fields,
including automobiles, housing and infrastructure as well as electric and electronic devices.
Accordingly, it is believed that foamed plastics, engineering plastics, specialty aromatic chemicals andother MGC Group products designed to serve as raw materials for the aforementioned fields could
be negatively affected.
The forecasts assume a crude oil price of US$30 per barrel for the first half and US$45 per barrel
for the second half of the fiscal year ending March 31, 2021. MGC therefore anticipates a reduction
in costs due to decreases in raw material and crude oil prices.
The forecasts assume exchange rates of ¥105=US$1 and ¥120=€1.
Moreover, MGC expects to record higher repair costs while anticipating increases in R&D
expenses and depreciation costs in order to focus on executing initiatives aimed at creating new
businesses and strategic investments aimed at securing growth.
Taking these factors into account, MGC’s consolidated operating results forecasts for the fiscal
year ending March 31, 2021 include net sales of ¥580.0 billion, operating income of ¥27.0 billion,
ordinary income of ¥26.0 billion and net income attributable to owners of the parent of ¥17.0
billion.
With regard to non-consolidated operating results forecasts, MGC’s forecasts for the year include
net sales of ¥340.0 billion, operating income of ¥15.0 billion, ordinary income of ¥20.0 billion andnet income of ¥17.0 billion.
Lastly, MGC’s actual operating results may significantly differ from the abovementioned forecasts
due to such factors as conditions associated with the containment of the novel coronavirus pandemic.
Upon the emergence of factors necessitating revision, MGC will notify its stakeholders of any
updated forecasts in a timely manner.

-

5 -Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen)
As of March 31, 2019
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
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment andvehicles, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Leased assets
Software
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Retirement benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

-

6

-

As of March 31, 2020

91,130155,50723
67,681
13,30838,262
13,965△1,033378,845

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

207,981△126,351
81,630457,159△378,458

220,252△135,913
84,339484,798△403,719

78,70081,07939,826750△373
377
20,522
48,151△40,716
7,435
228,492

41,109
2,611
△785
1,825
23,11351,266△42,894
8,371
239,838

3,841
5
2,187
2,579
8,614

5,293
0
2,251
3,052
10,597177,011
2,831
2,510
1,174
5,101
△543
188,086
425,193804,038

149,158
3,153
3,482
974
6,500
△640
162,628
413,063771,733

(Millions of yen)
As of March 31, 2019
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Current portion of bonds payable
Accrued expenses
Lease obligations
Income taxes payable
Provision for bonuses
Provision for bonuses for directors(and other officers)
Provision for environmental measures
Provision for loss compensation
Provision for loss on business of
subsidiaries and associates
Provision for loss on liquidation ofsubsidiaries and associates
Provision for loss on businesswithdrawal
Provision for business restructuring
Asset retirement obligations
Other
Total current liabilities
Non-current liabilities
Bonds payable
Long-term borrowings
Lease obligations
Deferred tax liabilities
Provision for retirement benefits for
directors (and other officers)
Provision for loss on guarantees
Provision for environmental measures
Provision for business restructuring
Provision for loss on liquidation ofsubsidiaries and associates
Other 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
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans-

7-

As of March 31, 2020

80,08958,749－20,493
97
3,439
5,539

70,77633,98010,00018,008
429
5,539
5,616

2

44

129
－

76
60

－

200

505

－

17

6

19
113
19,223
188,420－0
18,837
163,574

10,00026,615290
9,521－
29,043
1,260
9,200

337

433

2,358
164
1,017

－
237
1,329

72

1,170

218
5,247
2,324
4,166
62,336
250,756

356
9,333
3,560
4,091
60,016
223,591

41,97034,298439,080△19,930
495,418

41,97034,234
439,701△21,600
494,306

13,023

7,789

1
222
△6,327623

4－△6,701△2,877

Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

-

8

-

7,542

△1,78550,321
553,282804,038

55,619548,141
771,733

2. Consolidated Statements of Income(Millions of yen)
Fiscal year ended
March 31, 2019
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Rental 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
Loss on disposal of non-current assets
Foreign exchange losses
Rental expenses
Share of loss of entities accounted forusing equity method
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Subsidy income
Gain on sales of investment securities
Reversal of provision for loss on
guarantees
Gain on step acquisitions
Gain on sales of non-current assets
Insurance claim income
Gain on bargain purchase
Gain on reversal of asset retirement
obligations
Total extraordinary income
Extraordinary losses
Loss on tax purpose reduction entry of
non-current assets
Provision for loss on liquidation ofsubsidiaries and associates
Loss on valuation of investment
securities
Loss on disposal of non-current assets
Impairment loss
Provision for business restructuring
Loss on valuation of interest rate swaps
loss compensation
Provision for loss on business of
subsidiaries and associates
Loss on step acquisitions
Accident loss
Provision for environmental measures-9-

Fiscal year ended
March 31, 2020

648,986
512,857
136,129
94,742
41,386613,344481,950
131,394
97,13334,260

642
2,200
1,623

565
2,226
1,551

28,408－

1,819
34,694

1,390
5,733

1,018
1,430
988
594
1,634

968
1,512
1,237
1,342
1,628

－

1,282

1,216
6,882
69,199905
8,877
31,116－989※１ 6,794－※２ 1,024

2,676－※３ 1,016※４ 714※４ 859※５ 116※５ 564－492※６ 650－2,471

13,428－※７ 5,652－※８ 1,098

690

939※９ 646※９ 565－－－－※10 381－※12 200－－－※13 197※11 350228
217※14 193※15 177

Provision for loss on guarantees
Total extraordinary losses
Profit before income taxes※16 1,267

2,604
69,066-

10 -－10,202
34,343

(Millions of yen)
Fiscal year ended
March 31, 2019
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controllinginterests
Profit attributable to owners of parent

-

11 -

Fiscal year ended
March 31, 2020

8,333
753
9,087
59,979

8,373
1,482
9,855
24,487

4,979

3,329

55,00021,158(Consolidated Statements of Comprehensive Income)(Millions of yen)
Fiscal year ended
March 31, 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

-

12 -

Fiscal year ended
March 31, 2020

59,97924,487△4,212△5,172

1△2,232

3△3,431△1,812△3,386

2,594

1,488

△5,661
54,318△10,498
13,98850,795

11,884

3,522

2,104

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

Capital surplus

Retained earnings

Treasury shares

Total
shareholders'equity41,97034,578399,033△19,966

455,616

Balance at beginning of
periodChanges during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Transfer fromretained earnings tocapital surplus
Change in scope of
consolidation
Change in ownershipinterest of parent
due to transactions
with non-controllinginterests
Reversal ofrevaluation reserve
for landNet changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of
period△14,953△14,953

55,00055,000

53

△6

△6

42

95

△333

△333

－

△280

40,04635

39,802

41,97034,298439,080△19,930

495,418

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference onavailable-forsale
securities
17,261

Deferred
gains orlosses onhedges

Revaluation
reserveforland

Foreigncurrencytranslation
adjustm
ent

Remeasurements ofdefinedbenefit
plans

Total
accumulated
othercomprehensiveincomeNoncontroll
ing
interests

Total net
assets△0222△7,614

1,878

11,74751,780519,144

Changes during period
Dividends of surplus△14,953

Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Transfer fromretained earnings tocapital surplus

55,000
△6
95

-

13 -

Change in scope of
consolidation
Change in ownershipinterest of parent
due to transactions
with non-controllinginterests
Reversal ofrevaluation reserve
for landNet changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of
period△333△4,238

1

－

1,287

△1,254△4,204△1,459△5,664△4,238

1

－

1,287

△1,254△4,204△1,45934,13813,023

1

222△6,327623

7,542

50,321

553,282(Millions of yen)
Shareholders' equity
Share capital

Capital surplus

Retained earnings

Treasury shares

Total
shareholders'equity41,97034,298439,080△19,930

495,418

Balance at beginning of
periodChanges during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Transfer fromretained earnings tocapital surplus
Change in scope of
consolidation
Change in ownershipinterest of parent
due to transactions
with non-controllinginterests
Reversal ofrevaluation reserve
for landNet changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of
period△14,861△14,861

21,15821,158△8,733△8,73311

40

51△7,023

7,023

－

6,959

△6,959

－

1,246

1,246

△10

△10

37

37

－

△63

621

△1,669△1,111

41,97034,234

439,701△21,600

494,306

Accumulated other comprehensive income
Valuationdifference onavailable-forsale

Deferred
gains orlosses onhedges

Revaluation
reserve
for
land

-

Foreigncurrencytranslation
adjustment

14 -Remeasurements ofdefinedbenefit
plans

Total
accumulated
othercomprehensiveincomeNoncontroll
ing
interests

Total net
assetssecurities
Balance at beginning of
period13,023

1

222△6,327623

7,542

50,321

553,282

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Transfer fromretained earnings tocapital surplus
Change in scope of
consolidation
Change in ownershipinterest of parent
due to transactions
with non-controllinginterests
Reversal ofrevaluation reserve
for landNet changes in items
other thanshareholders' equity
Total changes during
periodBalance at end of
period△14,861
21,158△8,733
51
－
－
1,246

△10

37

△5,233

3

△222

△374

△3,500△9,327

5,298△4,029△5,233

3

△222

△374

△3,500△9,327

5,298△5,141

7,789

4

－

△6,701△2,877△1,78555,619548,141-15 -4. Consolidated Statement of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 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
Impairment loss
Loss on tax purpose reduction entry of
non-current assets
Subsidy income
Gain on reversal of asset retirement
obligations
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 withdrawal from business
Increase (decrease) in provision for loss
on liquidation of subsidiaries andassociates
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

-

16 -

Fiscal year ended
March 31, 2020

69,06627,45134,34329,591

870

778

260

380

△28,408

1,282

－

381

－

5,652

－

△6,794

△650

－

△173

△572

△137

187

△682

△48

△2,842
1,018△2,791968△1,041△2,682

837

762

8,059
△15,750△7,29019,048
5,694△13,799△1,141

1,976

68

△245

△107

△11

△144

592

1,270

△2,3585,779
56,3132,804△3,92068,416
2,755

12,323

10,693△1,020△6,552173△1,030△7,173572

64,042

74,234

(Millions of yen)
Fiscal year ended
March 31, 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
Proceeds from sales 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
Purchase 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

-

17 -

Fiscal year ended
March 31, 2020

△37,409891△5,039△43,453
1,144△1,544

648

4,702

△493
445

△731
398

－

5,810

939

－

△2,743△248△42,761△33,922△10,599△14,927

16,773△17,893△6△14,953

8,697△15,768△8,733△14,861△1,751△1,890△2,859△1,208△105△870△31,396△49,563190△1,342△9,925△10,594

90,30480,379－258

80,37970,043

4. Segment Information(Millions of yen, rounded down)

Sales:
Sales to third parties
Inter segment sales
Ordinary income
Segment aseets
Others:Depreciation and amortization
Amortization of goodwill
Interest income
Interest expenses
Equity in earnings of affiliates
Investment in affiliates accounted
for by the equity method
Capital expenditures

FY2018
Information
Specialty&
Chemicals
Advanced

NaturalGas
Chemicals

Aromatic
Chamials

180,554
7,770
188,325
22,665204,278

211,123593
211,717
13,961
211,795

204,634
1,099
205,734
28,206
238,546

51,986
951,996
4,480
72,484

686
127
814
480
30,606(9,601)(9,601)(594)
46,326

648,986

5,512
81
76
19,402

8,734
260
218
772
7

8,710
265
633
7,875

3,616
38
109
783

19
0
7
340

858
36
(582)
-

27,451
260
642
1,018
28,40874,222464

22,23010,5204,178

800

112,417

5,792

14,63014,406

2,303

0

2,146

39,279Other

Adjustments Consolidated

648,986
69,199804,038(Millions of yen, rounded down)

Sales:
Sales to third parties
Inter segment sales
Ordinary income
Segment aseets
Others:Depreciation and amortization
Amortization of goodwill
Interest income
Interest expenses
Equity in earnings of affiliates
Investment in affiliates accounted
for by the equity method
Capital expenditures

FY2019
Information
Specialty&
Chemicals
Advanced

NaturalGas
Chemicals

Aromatic
Chamials

157,158
6,632
163,790(5,711)
194,091

200,174952
201,127
10,470204,126

200,396
1,621
202,017
22,329235,638

54,716165
54,881
5,846
75,080

898
123
1,021
8
34,569(9,495)(9,495)(1,827)28,226613,344

6,352
123
59
112
(4,973)

9,588
256
218
710
49

8,724
236
562
3,357

3,853
27
72
344

19
1
9
5
(60)

1,052
14
(494)
-

29,591380
565
968(1,282)64,623499

20,002

10,537-(149)

95,513

7,294

15,022

14,677

2,635

1

2,759

42,389- 18 -

Other

Adjustments Consolidated

613,344
31,116
771,733

FY2019 Outline of Consoliodated Results(Billions of yen, rounded down)
FY 2020 FY 2020
ChangeFirst half Full Year(%)
forecast forecast
(5.5)
270.0
580.0
(13.0)
68.4
146.4
(5.0)
79.7
174.0
(1.8)
98.1
208.1
5.5
26.2
53.0
(2.5)
(1.6)
(17.2)
8.0
27.0(96.4)(2.2)(1.5)(23.9)
1.1
6.4
(6.5)
8.5
20.3
44.5
2.3
4.6
(1.8)
(2.8)
(111.3)(2.0)(1.0)(55.0)
6.0
26.0(125.2)(3.8)(1.8)(25.0)
0.7
5.6(20.8)
7.7
19.4
30.5
2.5
4.9
(1.2)
(2.0)
1.0
1.0
(50.3)
7.0
27.0

FY2018FY2019ChangeNet sales
Natural Gas Chemicals
Aromatic Chemicals
Specialty Chemicals
Information and Advanced Materials
Other and Adjustment
Operating income (loss)
Natural Gas Chemicals
Aromatic Chemicals
Specialty Chemicals
Information and Advanced Materials
Other and Adjustment
Non-operating profit
Ordinary income
Natural Gas Chemicals
Aromatic Chemicals
Specialty Chemicals
Information and Advanced Materials
Other and Adjustment
Extoraordinary income and loss, net
Income before income taxes, etc.

648.9
188.3
211.7
205.7
51.9
(8.7)
41.3
3.3
14.6
21.2
3.9
(1.8)
27.8
69.1
22.6
13.9
28.2
4.4
(0.1)
(0.1)
69.0

613.3
163.7
201.1
202.0
54.8
(8.4)
34.2
0.1
11.1
19.9
5.6
(2.5)
(3.1)
31.1
(5.7)
10.4
22.3
5.8
(1.8)
3.2
34.3

(35.6)(24.5)(10.5)
(3.7)
2.8
0.3
(7.1)
(3.2)
(3.5)
(1.3)
1.7
(0.7)
(30.9)(38.0)(28.3)
(3.4)
(5.8)
1.3
(1.7)
3.3
(34.7)Net income attributable to owners of the parent

55.0

21.1

(33.8)(61.5)FY2016FY2017FY2018FY2019

35.0
13.7
25.6
12.2
19.2
9.6
8,034
8.4%
12.0%

30.9
13.9
27.0
13.1
18.9
9.5
8,009
10.6%
13.6%

39.2
18.6
27.4
13.5
18.6
9.1
8,276
8.7%
11.3%

4.0

17.0

4.Other Information 1

Investments(Billions of yen)
Depreciation & amortization(Billions of yen)
R&D expenditures(Billions of yen)
Number of Staff
ROA (Ordinary income)ROE (Net income)

Full year
1H
Full year
1H
Full year
1H
Year-end

FY2020
Forecast
42.3
50.0
22.4
23.0
29.5
31.0
14.4
15.0
19.6
21.5
9.4
10.8
8,954
9,184
3.9%
3.3%
4.3%
3.5%

5.Other Information 2
FY2015FY2016FY2017FY2018FY2019FY2020ResultResultResultResultResultForecast
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)
Exchange Rate
(JPY/EUR, Average)
crude oil (Dubai)(USD/BBL)
Methanol (USD/MT,
Asian average spot price)
Mixed Xylene(USD/MT)

122

118

105

112

111

111

110

112

109

109

105

135

130

118

119

126

133

130

127

121

120

120

56

36

43

51

50

62

73

65

64

56

38

301

230

230

327

296

381

408

335

277

245

240

740

630

660

680

650

725

845

730

705

640

470

950
850
1,000
～1,500～1,100～1,200
2,100
2,000
2,200
Polycarbonate(USD/MT)*～2,650～2,400～2,500*Describe the minimum and maximum values during the period

1,000～1,4002,400～2,8001,100～1,3002,500～2,9001,200～1,7002,900～3,9001,600～1,9002,700～3,8001,200～1,8002,100～2,8001,000～1,4501,900～2,2501,050～1,3501,650～2,000700～1,3001,400～2,000Bisphenol A(USD/MT)*- 19 -

Qualitative Information
Consolidated Business Results for This Period
Overview of Results(Billions of yen)
FY2018FY2019ChangeNet sales

648.9

613.3

(35.6)

Operating income

41.3

34.2

(7.1)

Ordinary income

69.1

31.1

(38.0)

55.0

21.1(33.8)Net income attributable to owners of
the parent

During the fiscal year ended March 2020 (April 1 2019 – March 31, 2020), the world economy wasaffected by heightening tension between the United States and China over trade issues. Moreover, thenovel coronavirus emerged from January 2020, creating a global pandemic that caused significant
deceleration in economic activities and heightened the sense of uncertainty over the future.
Against this background, the MGC Group nevertheless saw consistently strong demand for its
semiconductor-related products. The Group also benefitted from growing demand for offerings for opticaluse, such as products used in smartphone cameras thanks to the widespread use of multiple camera
lenses in smartphones, in addition to those used in vehicle-mount cameras. However, the Group’s
overall business environment remained challenging, as market prices of such key products as methanol,
polycarbonates, purified isophthalic acid and other general-purpose products remained sluggish.
Despite the harsh business environment, the Group strove to live up to its vision of “Creating value toshare with society” and, to this end, has been implemening the MGC Advance2020 Medium-termManagement Plan since April 2018. Specifically, in line with the plan’s basic policies, the Group carriedout such strategies as “Strengthening the earnings power of existing businesses with a focus on corebusinesses,” “Creating and developing new businesses” and “Implementing investment strategies to form
an optimal business portfolio.” Thus, the Group’s accomplishments in the fiscal year ended March 31,
2020 included the launch of a new production facility for super-pure hydrogen peroxide in North America
and the strengthening of production capacity for optical polymers. The MGC Group also made progress ininitiatives to upgrade its consolidated business structure via, for example, the inclusion of Japan U-pica.
Co. Ltd. into the scope of consolidation while pushing ahead with procedures to complete the merger ofthree of its Group companies and consolidate their trading functions.
However, the MGC Group’s net sales decreased year on year, reflecting the decline in market prices formethanol, polycarbonates and other products.
Group operating income also fell year on year, despite an increase in the sales volume of optical resin
polymer and that of BT materials for semiconductor packaging, due to drops in market prices for suchproducts as polycarbonates, purified isophthalic acid and methanol.
20Ordinary income also decreased, due to the fall in operating income as well as a significant deteriorationin equity in earnings (losses) of affiliated companies related to overseas methanol producing companies.
This reflected falling methanol market prices as well as one-off costs recorded at a joint venture,described below, in Saudi Arabia.
As previously announced, from the fiscal year ended March 31, 2020, MGC’s Consolidated Financial
Statements reflect the impact of the decreased ratio of equity held by Japan Saudi Arabia Methanol Co.,
Inc. (JSMC), an equity method affiliate, in the Saudi Methanol Company (AR-RAZI) and amortization
costs associated with cash to be paid as consideration for the continuation of the joint venture status of
AR-RAZI. MGC also recorded one-off costs totaling ¥7.8 billion, including loss related to the sale ofshares of AR-RAZI as well as additional tax-related expenses. The aforementioned factors are included inequity in losses of affiliates.

21

Results by Business Segment
Natural Gas Chemicals(Billions of yen)
FY2018FY2019Change

Sales

180.5

157.1

(23.3)

Operating income

3.3

0.1

(3.2)

Ordinary income

22.6

(5.7)

(28.3)The methanol business saw decreases in both net sales and earnings due to a decrease in market
prices compared with the previous year.
Methanol and ammonia-based chemicals posted a decrease in earnings compared with the previous
fiscal year due to lower market prices of MMA and neopentyl glycol.
Despite higher crude oil sales volume, results for crude oil and other energy sources remained virtuallyunchanged from the previous fiscal year, reflecting such factors as plunges in crude oil prices.

Aromatic Chemicals(Billions of yen)
FY2018FY2019Change

Sales

211.1

200.1

(10.9)

Operating income

14.6

11.1

(3.5)

Ordinary income

13.9

10.4

(3.4)

Specialty aromatic chemical products posted a decrease in earnings from the previous fiscal year as
demand for meta-xylenediamine became weaker in the fourth quarter, despite growing sales volume ofaromatic aldehydes.
General-purpose aromatic chemical products suffered decreases in net sales and earnings comparedwith the previous fiscal year. Negative factors included lower sales prices of purified isophthalic acid andmeta-xylene.
Foamed plastics suffered a year-on-year decline in earnings, primarily due to weak demand and a rise in
fixed costs associated with the construction of production systems to meet new demand.

22

Specialty Chemicals(Billions of yen)
FY2018FY2019Change

Sales

204.6

200.3

(4.2)

Operating income

21.2

19.9

(1.3)

Ordinary income

28.2

22.3

(5.8)

Inorganic chemicals posted lower earnings compared with the previous year, despite growth in the sales
volume of chemicals for use in semiconductor manufacturing. This was primarily due to higher fixed costs
in connection with the launch of a new production facility for super-pure hydrogen peroxide in North
America, deterioration in the profitability of hydrogen peroxide and a decline in the sales volume ofchemicals for use in liquid crystal display production.
Earnings from the engineering plastics business stayed virtually unchanged from the previous fiscal year.
While market prices for polycarbonates declined significantly from the previous year, optical polymer
sales volumes increased due to the growing use of multiple camera lenses in smartphones and theexecution of measures to enhance production capacity.

Information & Advanced Materials(Billions of yen)
FY2018FY2019Change

Sales

51.9

54.7

2.7

Operating income

3.9

5.6

1.7

Ordinary income

4.4

5.8

1.3

Electronic materials saw increases in net sales and earnings. This was mainly attributable to overall
recovery of demand in contrast with stagnation in the latter half of the previous fiscal year, theperformance of products used in smartphones and memory devices that have been supported by growthin demand from the third quarter onward, and higher sales volumes of BT materials for semiconductor
packaging, the core product category for electronic materials.
Oxygen absorbers such as AGELESSTM posted a decrease in earnings compared with the previous year.
This was due mainly to a downturn in showings of those sold in Japan for use in confectionary packages,
reflecting the impact of natural disasters and the novel coronavirus pandemic.

(End)23