Mitsubishi Gas Chemical : Second Quarter Results Presentation Fiscal Year 2025(April 1, 2025-September 30, 2025)

FY2025 1H

November 10, 2025

TSE 4182

+ Increase in sales volume of BT materials

Net Sales

-

• Deterioration in polycarbonate (PC) and methanol market prices

• Withdrawal from the ortho-xylene (OX) chain business

Operating

profit

• Increase in fixed costs due to capacity

• expansion for inorganic chemicals

  • Deterioration in profitability of meta-xylenediamine (MXDA) products

＊No change from previous forecast for either

50 yen＊(forecast)

the year-end dividend

Dividend

Policy

in methanol market prices

Interim dividend 50 yen＊(confirmed)

Increase in sales volume of BT materials

• Deterioration in profitability of MXDA products

• Decline in profitability due to deterioration

-

Operating

profit

Increase in sales volume of BT materials

• ⚫ Deterioration in PC market prices

  • Decrease in sales volume of inorganic

chemicals

+

Net Sales

+

(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.

１

FY2025 1H Results

2

FY2025 Forecast

３

Results and Forecast by Segment

１

FY2025 1H Results

2

FY2025 Forecast

３

Results and Forecast by Segment

Net sales: Despite robust sales of electronics materials, the Group's net sales decreased, mainly due to the impact of the appreciation of the yen, lower market prices for engineering plastics and methanol, and withdrawal from the ortho-xylene chain business.

Operating profit: Declined due primarily to lower market prices for the above offerings and growth in fixed costs associated with the expansion of production capacities of inorganic chemicals. Other factors leading to this decline included sluggish demand for meta-xylenediamine and its derivatives as well as intensifying competition in the market for these products, in addition to the appreciation of the yen.

Ordinary profit: Decreased, due mainly to a decline in equity in earnings of affiliates related to the methanol business on the back of foreign exchange fluctuations and other factors.

Interim loss attributable to owners of parent: Posted due to lower ordinary profit and the impairment of noncurrent assets at a subsidiary engaged in meta-xylenediamine manufacturing in the Netherlands.

Content of the Difference

• Equity in earnings of affiliates

  GEC -2.2

  Specialty Chemicals -0.7

  Content of the Difference

• Impairment losses -50.0

・Impairment of MXDA Plant at MSCN, etc.

Aims of the project：

ー MXDA is one of the meta-xylene derivatives, and its main applications include epoxy resin curing agents, polyamides, and isocyanates.

ー Low-environmental-impact repair materials for wind power generation blades are also being increasingly recognized as a new application, and stable market growth is expected in the future. Currently, our company produces MXDA at two production bases in Japan.

ー In September 2021, we announced plans to construct an MXDA production facility with an annual capacity of 20,000 MT in Europe (Rotterdam industrial zone, Netherlands), the largest market for MXDA.

ー We proceeded with construction, initially aiming to start production in July 2024, through our consolidated subsidiary MGC Specialty Chemicals Netherlands B.V. (MSCN).

ー In addition to delays in the schedule due to factors including the switch of construction contractors last fiscal year, the business environment for the project has rapidly deteriorated due to soaring construction and labor costs stemming from the Russia-Ukraine conflict along with changes in the competitive environment in the MXDA market.

ー In light of this situation, we resolved and announced the temporary suspension of the construction work at the meeting of the Board of Directors held on September 17, 2025.

ー Following the temporary suspension of construction, as a result of a comprehensive evaluation of the project's economic viability and ability to recoup investment,we recognized a 50.2 billion yen

impairment loss on MSCN's non-current assets in the FY2025 second-quarter consolidated results.

(Note) In the non-consolidated results, we recorded 29.9 billion yen in valuation loss on shares of subsidiaries and affiliates and 21.9 billion yen in provision for business losses of subsidiaries and affiliates, but these are eliminated in the consolidated results.

ー Currently, we are considering all options toward improving profitability for the entire MXDA business, including whether to continue the construction.

（－） Methanol, BT materials, MXDA, etc.

(+) BT materials, etc.

（－） PC, etc.

[JPY in billions]

Quantity factors

+0.6

Forex factors

-1.6

(Forex rates*) FY2024 1H： ¥153/＄ FY2025 1H： ¥146/$

Price factors

-3.4

Others

-4.2

（－） Depreciation costs, MSCN-related, etc.

OP

-8.6

FY2024 1H FY2025 1H

＊ Exchange Sensitivity

USD, rough estimate : with an appreciation (depreciation) of ¥1 against the USD, annual operating profit falls (increases) by ¥0.5bn, while annual ordinary profit falls (increases) by ¥0.5bn.

EUR, rough estimate : with an appreciation (depreciation) of ¥1 against the EUR, annual operating profit falls (increases) by ¥0.1bn, while

annual ordinary profit falls (increases) by ¥0.1bn.

１

FY2025 1H Results

2

FY2025 Forecast

３

Results and Forecast by Segment

ー Based on the impairment loss recorded in the second quarter and recent business trends, we have revised downward our full-year

forecast and expect a net loss for the full year.

ー Although we expect an increase in the sales volume of BT materials, operating profit is expected to decrease due to deterioration in profitability for MXDA and its derivatives, and a decrease in sales volume for chemicals for use in semiconductor manufacturing.

[JPY in billions]

FY2025

Previous

Forecast*1

FY2025

Revised

Forecast

Changes

Amount ％

FY2024

Net sales

750.0

-20.0

-2.7

773.5

Operating profit

46.0

-2.0

-4.3

50.8

Ordinary profit

50.0

-

-

60.3

Profit attributable to

owners of parent

36.0

-53.0

-

45.5

E P S （ＪＰＹ） 184.87 （８７.30） 22８.93

R O E (%) 5.4 - 6.9

R O Ｉ Ｃ*2 (%) 4.2 3.9 6.4

ＦＸ (JPY/USD) 145 146 １５３

*1 Announced on Aug. 7, 2025

*2 ROIC =(Operating profit - Income taxes + Equity in earnings of affiliates) / invested capital