Mitsubishi Chemical : Business Strategy Briefing 2026

About this update from Mitsubishi Chemical Group Corporation

Mitsubishi Chemical Group Business Strategy Briefing 2026 May 25, 2026 Manabu Chikumoto President & Chief Executive Officer Mitsubishi Chemical Group Corporation FY25 Review FY26 Outlook: From Defense to Offense 2 FY26 Business Strategy Agenda FY25 Review FY25 results Final phase of structural reform Foundations for growth beyond FY26 FY26 Outlook: From Defense to Offense 3 FY26 Business Strategy Agenda FY25 results: Group core operating income 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 6 % 2,250 1,479 427 243 -151 FY23 *1 FY24 *1 FY25 FY29 Target FY25 results and FY26 forecast: Specialty Materials Core operating 10 % 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 Specialty Materials Impairment loss on Soarnol-related fixed assets in the U.K. (303) Core operating income margin Core operating margin 323 2 % Absence of the impact of an impairment loss on Soarnol-related fixed assets in the U.K. 220 Core operating margin 3 % operating margin 4 % 303 8 % 900 △157 305 Higher fixed costs and other factors Contribution from the "Three disciplined approaches in business operations" *5 1550 FY23 FY24 Contribution from 239 the "Three disciplined approaches in business operations" *5 74 449 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 Structural reform: Strategic decisions on reform businesses within FY25 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 Background ▶ 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 Objectives Lead restructuring of the chemical industry Promote decarbonization and circularity of the chemical industry Contribute to economic security 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 FY25 FY26 onward 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. CEO Basic Materials MMA＆Derivatives Films & Performance Materials CEO Basic Materials & Polymers MMA＆Derivatives Advanced Films & Polymers Advanced Solutions Advanced Composite & Shapes Food & Healthcare Composites & Shapes Information Electronics Polymer Compounds Engineering Plastic, Polypropylene Compounds Performance Polymers Certain materials, such as Glass Fiber Composite Water & Infrastructure 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 FY25 Head of Business Group Technology Strategy Product development Incubation Technical Service Accelerating "connectivity" by seamlessly integrating research, development, and technology marketing functions that had previously been operated independently by each business group. CTO * 1 Technology Strategy Technology platform Open Innovation Intellectual Property Planning 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 FY25 Head of Business Group Technology Strategy Product development Incubation Technical Service Accelerating "connectivity" by seamlessly integrating research, development, and technology marketing functions that had previously been operated independently by each business group. CTO * 1 Technology Strategy Technology platform Open Innovation Intellectual Property Planning 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 Large-scale investment projects for FY24/25 Equivalent to approx. 490 billion yen in revenue (Chemicals Business) Business restructuring and divestiture projects for FY24/25 (Decisions finalized) Major large-scale growth investment projects scheduled to commence commercial operations in FY25 and beyond Films & Performance Materials Capacity expansion of EVOH copolymer resin "Soarn " (UK) Capacity expansion of polyester film production (Germany) Capacity expansion of optical film "OPL Fil " for polarizing plates (Gifu) Capacity expansion of emulsifier "Sugar Ester" (Fukuoka) Composites & Shapes Installation of additional large-scale press molding machines for carbon fiber composites (Italy) Capacity expansion of high-performance engineering plastics plants (Thailand and Belgium) Information Electronics Installation of new production facilities for EUV dry resist precursors (U.S.) Capacity expansion of "Mitsubishi Synthetic Silica" (Fukuoka) Capacity expansion of EL hydrochloric acid (Fukuoka) Construction and expansion of semiconductor precision cleaning plants (Fukushima and Iwate) Capacity expansion of natural graphite anode materials for automotive lithium-ion batteries (Kagawa) Water & Infrastructure Capacity expansion of ion exchange resins (Fukuoka) Basic Materials Construction of chemical recycling facilities for waste plastic-to-oil conversion (Ibaraki) *1 Large-scale growth investment projects scheduled to commence commercial operation from FY25 FY25 Review 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 FY26 Business Strategy Agenda Chemicals Business *1 portfolio - IR Day 2025 Corporate Strategy Meeting Materials (December 18, 2025) - 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 Next-generation GaN Communications (optoelectronic integration) Semiconductor Thermal management EUV Resist materials Chemical recycling of waste plastic by oilification Growth driver growth inves Approx. 2,000 Carbon Fiber・ Semiconductor Composite (Parts) Polymers Engineering Shapes (SoarnoL TM ) & Solutions High performance films 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) Harvesting Results: Full-Scale Transition to the Cash Generation Phase 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) Advanced materials Combining MCG CF materials with CPC processing technology allows for short cycle times of CFRP parts Processing technology 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 Full-Scale Operation: Growth investment projects will begin full-scale operation, contributing to profits from FY26 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 Installation of new polyester film lines 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 Construction and expansion of semiconductor precision cleaning plants 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) Expansion of high-performance engineering plastics plant 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 p ower-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 GaN substrate market forecast for power electronics 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/ Market development: Expansion into aerospace industry 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 Current adoption track record in aerospace Satellites Small aircraft & Next-Gen air mobility Drones MCG material strengths for new markets Market Development: Accelerating strategic areas such as green chemicals and data centers through various projects CO 2 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 CO 2 and green hydrogen Green Chemicals Business 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 Data Center Business Photonics-electronics convergence Thermal management Our company sees many business opportunities in Water-Cooled Data Centers Water-Cooled Data Centers CDU (Coolant distribution unit ) Optical fibers(PMMA) Cooling towers Cable sheath materials (thermoplastic elastomer) Cooling facilities GaN Wafer (GaN substrate) Water-cooled server racks Voltage converter Voltage converter LiB *2 -related materials UPS *1 Power intake Emergency generator Data center construction materials (Aluminum Composite Material) Semiconductor devices TIM (Thermal Interface Material) Server enclosure materials (ABS resin) Servers On sale Under development Photonics-electronics convergence materials 19 Mitsubishi Chemical Group Corporation * 1 Uninterruptible Power Supply * 2 Lithium- ion Battery FY25 Review FY26 Outlook: From Defense to Offense FY26 Business Strategy Composites & Shapes Information Electronics Polymer Compounds 20 Water & Infrastructure Agenda

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