FY2023

Consolidated

Financial Results

May 10, 2024

TSE 4182

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

1

INDEX

１

2

３

FY2023 Results

FY2024 Forecast

Results and Forecast by Segment

4 Topics

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

2

１

2

３

FY2023 Results

FY2024 Forecast

Results and Forecast by Segment

4 Topics

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

3

FY2023 Results

  • Operating profit decreased, despite improvement in the profitability of polycarbonates, recovery in demand for electronic materials and other positive factors. The decrease was due mainly to stagnant polyacetal market prices, as well as stagnation in demand of aromatic chemicals.
  • Ordinary profit declined, reflecting impairment losses recorded at overseas methanol producing companies.

Changes

FY2023

Previous

[JPY in billions]

FY20２2

FY2023

Amount

％

Forecast*

Changes

Net sales

781.2

813.4

+32.2

＋４.1

800.0

+13.4

Operating profit

49.0

47.3

-1.6

-3.5

46.0

+1.3

Ordinary profit

69.7

46.0

-23.7

-34.0

49.0

-2.9

Profit attributable to

49.0

38.8

-10.2

-20.9

47.0

-8.1

owners of parent

*Announced on Feb. 9, 2024

E P S （ＪＰＹ）

239.08

190.97

231.25

R O E

(%)

8.3

6.1

7.5

R O Ｉ Ｃ**

(%)

8.8

5.4

5.7

ＦＸ (JPY/USD)

135

145

142

(Note) Figures shown on this and the following pages are rounded down to the closest 0.1 billion. Percentage figures, per-share indicators, and performance assumptions are rounded off to the closest whole number.

**ROIC=Ordinary profit/invested capital

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

4

FY2023 Results Summary

(YoY) Net sales＋￥32.2 bn, Operating profit-￥1.6 bn, Ordinary profit-￥23.7ｂｎ, Profit attributable to owners of parent-￥10.2 bn.

ー

Net sales:

(＋) Inclusion of Mitsubishi Engineering-Plastics Corporation into the scope of consolidation

(＋) Depreciation of the yen

(－) Exclusion of JSP Corporation from the scope of consolidation

(－) Downturns in methanol and ammonia market prices

ー

Operating profit：

（＋） Depreciation of the yen

（＋） Recovery in demand for electronic materials

（＋） Improvement in the profitability of polycarbonates

（－） Stagnant polyacetal market price

（－） lower sales volumes of meta-xylenediamine, aromatic aldehydes, and other offerings

  • Ordinary profit： declined, reflecting a decrease in equity in earnings of affiliates due to downturns in methanol market prices, impairment losses recorded at overseas methanol producing companies in the Republic of Trinidad and Tobago, and the absence of non-operating income recorded in the previous fiscal year through the reversal of deferred tax liabilities at an overseas methanol producing company in Venezuela.
  • Equity in earnings of affiliates： decreased due primarily to lower ordinary profit, despite the positive impact on profit arising from the recording of gain on step acquisitions in connection with the inclusion of Mitsubishi Engineering-Plastics Corporation into the scope of consolidation.
  • DPS： ¥80 (Interim ¥40, year-end ¥40*）（Same as previous year's results and previous forecast）

*Scheduled to be formally authorized by Board of Directors on May 27, 2024

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

5

Quarterly Results by Segment

FY2022 Results

FY2023 Results

[JPY in billions]

１Q

２Q

３Q

４Q

FY

１Q

２Q

３Q

４Q

FY

Net sales

193.9

200.9

204.4

181.8

781.2

187.0

212.6

222.0

191.6

813.4

Green Energy &

117.1

119.2

129.3

113.2

478.9

101.9

87.8

412.8

Chemicals(GEC)*

107.4

115.5

(former Basic Chemicals)

Specialty Chemicals

78.8

82.9

77.2

69.9

309.0

87.2

106.9

108.7

106.2

409.2

Other/Adjustment

(2.0)

(1.3)

(2.1)

(1.2)

(6.7)

(2.1)

(1.7)

(2.2)

(2.4)

(8.6)

Operating profit

18.8

14.6

11.8

3.6

49.0

6.2

15.8

16.5

8.6

47.3

GEC

7.6

6.8

4.4

(0.1)

18.8

3.2

6.2

6.9

1.2

17.7

Specialty Chemicals

12.0

8.3

8.0

4.2

32.6

3.5

10.6

10.7

8.1

33.0

Other/Adjustment

(0.9)

(0.4)

(0.6)

(0.4)

(2.4)

(0.5)

(1.0)

(1.1)

(0.7)

(3.5)

Ordinary profit

24.8

25.0

13.8

5.9

69.7

7.0

17.9

18.4

2.6

46.0

GEC

8.4

12.4

8.1

1.5

30.5

2.0

5.4

9.0

(6.3)

10.1

Specialty Chemicals

14.5

10.7

8.1

5.2

38.7

4.7

13.1

11.4

9.3

３８.6

Other/Adjustment

1.9

1.8

(2.5)

(0.7)

0.4

0.2

(0.6)

(2.0)

(0.3)

(2.7)

*April 1 2024, the former Basic Chemicals Business Unit has been reorganized into the Green Energy & Chemicals Business Unit (GEC).

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

6

Reference： Quarterly Results by Major Product Groups*

FY2022FY2023

[JPY in billions]

1Q

2Q

3Q

4Q

FY

1Q

2Q

3Q

4Q

FY

Net sales

193.9

200.9

204.4

181.8

781.2

187.0

212.6

222.0

191.6

813.4

Natural Gas

61.6

57.7

67.7

60.0

247.1

４９.２

48.3

54.5

63.4

215.5

Aromatic

56.5

62.4

62.6

54.0

235.7

５３.５

59.8

61.9

25.3

200.6

Specialty

59.6

66.4

64.2

58.5

248.9

73.5

91.3

91.2

８９.０

345.2

Information &

19.2

16.5

12.9

11.4

60.2

13.6

15.6

17.5

１７.１

64.0

Advanced Materials

Other/Adjustment

(3.1)

(2.3)

(3.2)

(2.1)

(10.8)

(２.９)

(2.5)

(3.1)

(3.4)

(12.0)

Operating profit

18.8

14.6

11.8

3.6

49.0

６.２

15.8

16.5

8.6

47.3

Natural Gas

3.8

2.7

1.7

0.5

8.8

1.8

2.2

1.6

２.８

8.5

Aromatic

3.8

4.0

2.7

(0.7)

9.8

1.3

3.9

5.3

(1.5)

９.1

Specialty

7.5

5.4

7.2

3.9

24.1

1.6

7.2

6.3

４.1

19.4

Information &

4.5

2.9

0.8

0.2

8.4

1.8

3.4

4.3

3.9

13.6

Advanced Materials

Other/Adjustment

(0.9)

(0.4)

(0.6)

(0.4)

(2.3)

(0.6)

(1.0)

(1.1)

(0.7)

(3.5)

Ordinary profit

24.8

25.0

13.8

5.9

69.7

7.0

17.9

18.4

2.6

４6.0

Natural Gas

3.9

8.1

5.3

2.6

20.1

0.5

1.2

3.3

(5.1)

0.0

Aromatic

4.4

4.2

2.8

(1.1)

10.3

1.5

4.1

5.7

(1.2)

10.1

Specialty

9.0

7.3

6.6

5.0

28.1

2.4

9.2

6.5

5.2

２３.4

Information &

5.4

3.4

1.5

0.1

10.6

2.2

3.9

4.8

4.1

１５.１

Advanced Materials

Other/Adjustment

1.9

1.8

(2.5)

(0.7)

0.5

0.2

(0.6)

(2.0)

(0.3)

(2.8)

*Segments by major product group （These are reference values calculated according to past segments. Please refer to page 29.）

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

7

FY2023 Increase and Decrease Factors of Operating Profit (YoY)

（＋） Foamed plastic, Electronic

[JPY in billions]

Chemicals, PC, etc.

（＋）Inclusion of Mitsubishi Engineering-Plastics

（－） POM

（－） Electronic Chemicals,

Corporation into the scope of consolidation, etc.

MXDA, aromatic aldehydes etc.

（－） Increase in SG&A and fixed costs

Price

Others

factors

Forex

+9.1

-9.2

Quantity factors

factors

8.5

+6.8

(Forex rates)

FY2022： ¥135/$

49.0

FY2023： ¥145/$

47.3

OP

-1.6

FY2022

FY2023

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

8

FY２０２3 Non-Operating & Extraordinary Items

[JPY in billions]

FY2022

FY2023

Changes

Non-operating items

20.7

(1.2)

-22.0

Equity in earnings of affiliates

17.5

(5.6)

-23.2

Financial income or losses

2.4

2.4

-0.0

Foreign exchange gains or losses

2.6

3.4

+0.7

Others

(1.9)

(1.4)

+0.4

Extraordinary income

4.8

20.3

+15.6

Gains on sales of investment securities

3.7

2.8

-0.9

Insurance claim income

0.1

1.4

+1.2

Gain on step acquisitions

-

15.0

+15.0

Others

0.9

1.1

+0.2

Extraordinary losses

(4.4)

(5.7)

-1.3

Loss on sales of shares of subsidiaries and

-

(２.８)

-２.８

affiliates

Impairment losses

(1.1)

(1.4)

-0.3

Loss on tax purpose reduction

-

(0.7)

-0.７

entry of non-current assets

  • Equity in earnings of

affiliates

Downturns in methanol market prices, impairment losses* recorded at overseas methanol producing companies.

  • Impairment loss of 7.4 billion at methanol production company (Caribbean Gas Chemical Limited) in Trinidad and Tobago.
  • Gain on step acquisitions
    Gain on step acquisitions in connection with the inclusion of Mitsubishi Engineering-Plastics Corporation into the scope of consolidation in FY2023.
  • Loss on sale of shares of

subsidiaries and affiliates

Loss on sales of JSP shares

Loss on disposal of non-current assets

Provision for business restructuring

Loss on valuation of shares of subsidiaries and associates

Provision allowance for doubtful accounts

Others

Total extraordinary income and losses

(0.8)

(0.3)

＋0.５

(0.8)

-

+0.8

(0.8)

-

+0.8

(0.4)

(0.2)

+0.2

(0.2)

(0.1)

+0.0

0.4

14.8

+14.3

(consolidated),etc.

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

9

FY２０２3 Balance Sheets

[JPY in billions]

Mar. 31, 2023 Mar. 31, 2024

Changes

Current assets

483.2

463.1

-20.1

Cash and deposits

108.3

71.4

-36.9

Trade notes and

176.6

165.6

-10.9

Accounts receivable

Inventories

178.1

200.5

+22.3

Others

20.1

25.5

+5.4

Non-current

546.0

604.8

+58.7

assets

Tangible assets

313.7

314.6

+0.8

Intangible assets

11.9

24.8

+12.8

Investments and

220.3

265.3

+45.0

other assets

Total assets

1,029.3

1,068.0

+38.6

[JPY in billions]

Mar. 31, 2023

Mar. 31, 2024

Changes

Liabilities

358.0

383.1

+25.1

Trade note and

88.3

109.0

+20.6

accounts payable

Interest-bearing debt

166.9

173.0

+6.0

Others

102.7

101.1

-1.6

Net assets

671.2

684.8

+13.5

Shareholders' equity

573.8

587.6

+13.7

Accumulated other

33.7

70.1

+36.3

comprehensive income

Non controlling interest

63.6

27.0

-36.5

Total liabilities and

1,029.3

1,068.0

+38.6

net assets

©MITSUBISHI GAS CHEMICAL COMPANY, INC.

10

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MGC - Mitsubishi Gas Chemical Co. Inc. published this content on 10 May 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 10 May 2024 06:14:53 UTC.