Mitsubishi Chemical : Business Strategy Briefing 2026

Mitsubishi Chemical Group

May 25, 2026

Manabu Chikumoto

President & Chief Executive Officer Mitsubishi Chemical Group Corporation

1. FY25 Review
2. FY26 Outlook: From Defense to Offense

   2

3. FY26 Business Strategy

1. FY25 Review

   • FY25 results

   • Final phase of structural reform

   • Foundations for growth beyond FY26

2. FY26 Outlook: From Defense to Offense

   3

3. FY26 Business Strategy

• FY25 results in the Chemicals business were challenging due to the recognition of an impairment loss on fixed assets related to Soarnol in the UK and deterioration in MMA monomer market conditions, but Industrial Gases remained solid, resulting in performance broadly in line with the previous fiscal year.

  
  
  

• Continue to focus on accelerating growth in Specialty Materials and restructuring the materials business to deliver FY29 target

  Mitsubishi Chemical Group

  Core operating income (Oku yen)

  Chemicals Industrial Gases
  
  

  Chemicals

  Industrial Gases

  Core operating margin

  10%Mitsubishi Chemical Group Core operating income margin
  
  

  230

  2,120

  4,600

  Core operating margin

  6%

  2,288

  Core operating margin

  2,360

2,250

1,479

427 243

FY23*1

FY24*1

FY25

FY29 Target

Core

operating

margin

• In FY25, an impairment loss of approximately 30 billion yen was recognized following the review of the UK Soarnol investment plan. Specialty Materials*1 remained generally solid excluding this impact, reaching a level close to the forecast (65 billion yen*2).

• In FY26, Specialty Materials*2 is expected to make steady progress in strengthening its revenue base and achieve business growth through the continued execution of three key initiatives, in addition to the results

achieved through the structural reform implemented over the past two years.

FY25 FY26

Specialty Materials

Core operating income

(Oku yen) *2

Core

Core operating margin

FY27-FY29

Key initiatives

• Realization of investment effects

Core operating income margin

Core operating margin

220

Core operating margin

operating margin

303

Higher fixed costs and other factors

Contribution from

the "Three disciplined approaches in business operations"*5

1550

FY23

FY24

Contribution from

the "Three disciplined approaches in business operations"*5

FY25 FY25*4

FY26

FY29

Before organizational Structure change

After organizational structure change

Forecast*4

Target*4

*1 Advanced Films & Polymers, Advanced Solutions, Advanced Composite & Shapes

*2 Earnings forecast announced on October 31, 2025

*3 Films & Performance Materials, Composites & Shapes. Information Electronics, Polymer Compounds, Water & Infrastructure

5 Mitsubishi Chemical Group Corporation *4 Figures are presented based on reclassified reporting segment categories applicable from FY26 onward, in line with the organizational restructuring effective April 1, 2026.

*5 Excluding effects arising in the Corporate sector

Organization

• Establish JV with Asahi Kasei and Mitsui Chemicals to consolidate two crackers in Western Japan into one by 2030

  Three-company alliance in Western Japan Start of spin-off consideration

  Petrochemicals

• Commencement of consideration on the spin-off of the petrochemicals business as a wholly owned subsidiary to pave the way for participation in alliances with other companies

• Through alliances, strengthen the competitiveness of the petrochemicals business, a foundational industry for Japan, and drive the transition toward decarbonization and circularity

  Exit coke, carbon materials business

  Carbon

• Market remains fundamentally weak; sluggish demand and oversupply

• Coke / Carbon Materials: Profitability improved significantly through internal efforts such as reduced production, and the business returned to profitability in the second half of FY25. However, we have decided to discontinue the business after determining that the future business environment will be increasingly challenging.

  Restructure MMA/PMMA

  business

  MMA

• In response to deteriorating market conditions caused by significant capacity expansion in China, initiatives are being implemented globally toward business restructuring.

  • Review of sales strategy and business sites in the European market

  • Decision made to dissolve the Taiwan JV, while also reviewing the positioning of other Asian sites in the post-Iran-conflict era.

  • Accelerating the development of our future plan for aging U.S. facilities

  • Continue exploring partnerships in India

• Optimize personnel and improve productivity through workflow redesign

  NSP/Post-off

• Strengthen development and deployment of high-potential mid-level and up-and-coming talents

  
  
  Structural reform: Consideration of spin-off of the petrochemicals business

• MCG started considering the spin-off of the petrochemicals business as a wholly owned subsidiary.

• With future integration and industry restructuring in mind, we aim to further strengthen the competitiveness of the petrochemicals business and accelerate our transition toward decarbonization and circularity.

▶ Declining demand in Japan and overseas

▶ Declining competitiveness overseas, particularly in East Asia

▶ Growing demand for decarbonization and circularity

▶ Proactive participation in alliances with other companies

• Structural reform across the petrochemical industry

• Enhancement of competitiveness

• Accelerating green transition initiatives

▶ Contributing to economic security and fulfilling a role as social infrastructure

Lead restructuring of the chemical industry

Through strategic alliances, MCG seek to further enhance the competitiveness of our petrochemical business, strengthen the resilience of domestic supply chains, contribute to Japan's economic security, and build a framework for the continuous and responsible execution of these initiatives.

Structural reform: Changing the organizational structure to enable more agile and "Offensive" decision-making

Business group will be reorganized by market and business model, updating the structure to enable each business group to operate with ownership and greater focus.

Food & Healthcare

Engineering Plastic, Polypropylene Compounds

Performance Polymers

Certain materials, such as Glass Fiber Composite

Structural Reform: Maximizing output across the company by centrally managing innovation organizations under the CTO*1

FY26 onward

CTO*1

Head of

Business Group

Next-Gen Business Development

Science & Innovation Center

Intellectual Property Innovation Planning

Basic Materials Technology Development

Basic Materials

MMA＆Derivatives Technology Development

MMA＆Derivatives

Films & Performance Materials Technology Devp

Films & Performance

Composites & Shapes Technology Development

Composites & Shapes

Information Electronics Technology Development

Information Electronics

Polymer Compounds Technology Development

Polymer Compounds

Water & Infrastructure Technology Development

Water & Infrastructure

Accelerating "connectivity" by seamlessly integrating research, development, and technology marketing functions that had previously been operated independently by each business group.

Structural Reform: Maximizing output across the company by centrally managing innovation organizations under the CTO*1

Head of

Business Gro

en Business Development e & Innovation Center

tual Property ion Planning

Materials Technology Development Basic Materials

Derivatives Technology Development MMA＆Derivatives

& Performance Materials Technology Devp Films & Performan

sites & Shapes Technology Development Composites & Sha

ation Electronics Technology Development Information Electr

r Compounds Technology Development Polymer Compoun

FY26 onward

CTO*1

up

Next-G

Scienc

Innovation strategy /

technology platform

Intellec

Innovat

Basic

MMA＆

Films

Accelerate product

development / shorten time to market

ce

Compo

pes

Inform

onics

Polyme

ds

Water & Infrastructure Technology Development

Water & Infrastructure

Accelerating "connectivity" by seamlessly integrating research, development, and technology marketing functions that had previously been operated independently by each business group.

Foundations for Growth: Business restructuring/divestitures and large-scale investments

Key decisions on major structural reform projects were mostly completed within FY25. At the same time, portfolio transformation progressed through large-scale investments.

ol

m

Investment amount of approx. 280 billion yen*1

Equivalent to approx. 490 billion yen in revenue (Chemicals Business)

Major large-scale growth investment projects scheduled to commence commercial operations in FY25 and beyond

*1 Large-scale growth investment projects scheduled to commence commercial operation from FY25

1. FY25 Review

2. FY26 Outlook: From Defense to Offense

   • Full-scale operation of growth investment projects and harvesting results

   • New investments and market development to further accelerate growth

     12

3. FY26 Business Strategy

Large-scale

tment*2 Oku yen

Cornerstone

Large-scale

growth investment*2 Approx. 800 Oku yen

Battery & Electronics

Polymers (Compounds)

Water & Environment Solutions

Films

Five business focus areas

Stable supply platform for green chemicals

Life Solutions

Carbon Fiber・ Composite (Materials)

Eco-conscious

mobility

Enable advanced data

processing and telecommunications

Infrastructure Solutions

Food quality Technology and equipment

preservation for new therapeutics

Profitability

Advanced Films＆Polymers Advanced Solutions Advanced Composite＆Shapes

MMA＆Derivatives Basic Materials＆Polymers

All segments except "Next-generation" are

presented on a disclosed segment basis

Allocation of large-scale growth investment on projects scheduled to begin commercial operation from FY25

Growth potential

13 Mitsubishi Chemical Group Corporation

*1 Disclosure based on the reporting segment classification prior to the organizational restructuring effective April 1, 2026

Structural reform

Carbon Products

MMA&Derivatives

Materials&Polymers

*2 Large-scale growth investment projects scheduled to begin commercial operation after FY25 (projects totaling 10 Oku yen or more, excluding subsidies)

Robotaxi production also entering

full-scale operation and rising rapidly

FY25 Jan

Feb

Mar FY26

Wide lineup of CF composite intermediates, selectable by processability, specific stiffness, and specific strength to match application

Thermosetting carbon fiber "Prepreg" Carbon Fiber FMC (CF-SMC)

Combining MCG CF materials with CPC processing technology allows for short cycle times of CFRP parts

Track record of hypercar production with European and US automotive OEMs, enabled by advanced processing technology

Major productivity improvement for complex structural parts through installation of one of the world's largest press-molding machines

（5k ton 5ｍx3ｍ press)

Expanded supply of parts to premium-car OEMs also contributed

• Mitsubishi Polyester Film GmbH (Germany)

• Installation of new PET film production equipment

• Target customers: Specialty areas such as label liners and industrial applications (we hold the No.1 market share in this field)

• Capacity increase of 27,000 tons/year through the new line

• Operation to start in July 2026

• Shinryo Corporation - Fukushima and Iwate plants

• Fukushima (new plant) / Iwate (capacity expansion of existing plant)

• Semiconductor manufacturing equipment parts cleaning business

• Target customers: Global top-tier semiconductor and semiconductor equipment manufacturers

• Production capacity to be doubled

• Operation to start in October 2026

Build trust with OEMs through our quality and technology, achieving high profitability as a preferred manufacturer.

• Mitsubishi Chemical Advanced Materials Co., Ltd. (Thailand)

• Components for semiconductor manufacturing equipment

• Target customers: Global top-tier semiconductor equipment manufacturers

• Plant capacity to be expanded by a factor of five (Phased expansion until completion in FY27)

• Operation to start in December 2025 (Phase1)

New investments and market expansion: Leading the power semiconductor market with World-Class GaN on GaN technology

Our ultra-low crystal-defect density GaN substrate is critical for power-hungry devices requiring both high voltage tolerance & high frequency

(Oku yen)

450

400 High frequency Other Indusrial

350

Aerospace & drones

300

Automotive

250

Data Center

200

150

100

50

0

2026 2027 2028 2029 2030 2031 2032 2033 2034 2035

Source: Our Estimates Based on the Fuji Business Research Report

High

voltage

SiC

Already partially commercialized in EVs and solar power generation

No.1

Share

GaN on GaN

R&D stage

High Frequency

Si

Mainstream material for power semiconductors today

GaN on Si

Already commercialized

in AC adapters and LiDAR

Low Frequency

Low voltage

Source：https://xtech.nikkei.com/atcl/nxt/column/18/02111/082000006/

L

Leverage certified materials and distinctive molding capabilities in aerospace segment to pursue further growth

• Brake components for

aircraft

• Engine components for Airbus A320neo

PYROFI CF

Fan case

Structural guide

vane (SGV)

• Communications

satellite components

• Sheet material for aircraft •Floor and interior

Prepreg panels for aircraft

Satellites

Small aircraft

& Next-Gen air mobility

Drones

CO2

CCU

Recycling

Start-up in FY25

Chemical recycling of waste plastics through direct oilification using supercritical water

Aiming commercialization ~2030

Production of aviation fuel and

bio-naphtha from woody feedstock

Aiming commercialization ~2030

Production of polypropylene from

CO2 and green hydrogen

Biomass

The launch of related materials is currently under consideration.

Providing solutions to meet cooling needs for advanced semiconductors

• Applying our proprietary pitch-based carbon fibers and boron nitride (high-thermal-conductivity materials) to next-generation semiconductor applications

• Accelerating the strategic partnership with Boston Materials, a leading company in thermal interface materials (TIM)

Aiming commercialization ~2028

Development and production of photonics-electronics convergence materials (e.g., polymer optical waveguides) that contribute to advanced communications and energy savings

Photonics-electronics convergence

Thermal management

Our company sees many business opportunities in Water-Cooled Data Centers

Water-Cooled Data Centers

CDU

(Coolant distribution unit )

Cooling facilities

Water-cooled server racks

Voltage converter

Voltage converter

UPS*1

Power intake

Emergency generator

Semiconductor devices

Servers

On sale

Under development

19 Mitsubishi Chemical Group Corporation

* 1 Uninterruptible Power Supply

* 2 Lithium- ion Battery

1. FY25 Review

2. FY26 Outlook: From Defense to Offense

3. FY26 Business Strategy

   • Composites & Shapes

   • Information Electronics

   • Polymer Compounds

     20

   • Water & Infrastructure