Mitsubishi Chemical : Operating Summary of 1Q-FY2022

Operational Summary

for the First Quarter of Fiscal Year Ending March 31, 2023

August 3, 2022

Mitsubishi Chemical Group Corporation

Table of Contents

Consolidated Financial Statements for FY2022 1Q

Highlights

Statements of Operations

Sales Revenue and Core Operating Income by Business Segment

Analysis of Core Operating Income

Overview of Business Segments

Pharmaceuticals : Details of Revenue (FY2022 1Q Actual)

Special Items

Cash Flows

Page No.

Statements of Financial Positions

1. Sales Revenue and Core Operating Income by Business Segment [Quarterly Data]
2. References 1
3. Statements of Operations [Quarterly Data]
4. EBITDA Margin by Business Segment
5. References 2

11 Health Care Segment, Pharmaceuticals Businesses Status of Research and Development etc.

12

13

14

15

Page No.

17

18

Page No.

20

List of Abbreviations

FY2022	April 1, 2022 - March 31, 2023	MCG	Mitsubishi Chemical Group Corporation
FY2021	April 1, 2021 - March 31, 2022	MCC	Mitsubishi Chemical Corporation
		MTPC	Mitsubishi Tanabe Pharma Corporation
		LSII	Life Science Institute, Inc.
		NSHD	Nippon Sanso Holdings Corporation

2 Mitsubishi Chemical Group Corporation

Highlights

	• Under a business environment hampered by soaring raw material and fuel costs and
	supply chain turmoil, MCG hit the record high sales revenue contributed from a
	depreciation in the yen's value versus major currencies besides the Group's effort to push
	forward with pricing activities and cost reductions.
FY2022 1Q	• Although Core operating income dropped by 19% year-on-year, it reached to 58%, versus
the forecast for the first half set at the beginning of fiscal year 2022. In all segments, the
	progress for core operating income was over 50%, vs. the first-half forecast.
	• Net income attributable to owners of the parent decreased by 10% year-on-year but
	reached by 73% versus the first-half forecast for net income attributable to owners of the
	parent.
	• MCG won't change the earnings forecast set at the beginning of fiscal year 2022.
	• MCG estimates that its forecast will be almost the same as the forecast announced at the
	beginning of fiscal year 2022 due to the uncertainty of the outlook of business environment
Forecast	with ongoing high raw material and fuel prices, and with signs of a slowdown in the
economy mainly in the US and Europe.
	• In and after the second quarter as well, MCG plans to optimize operations and steadily
	reduce costs in accordance with passing through costs to selling prices and regional
	demand trends.

3 Mitsubishi Chemical Group Corporation

Consolidated Statements of Operations

Exchange Rate (¥/$)

Naphtha Price (¥/kl)

Sales Revenue

Core Operating Income *1

Special Items

Operating Income

Financial Income/Expenses

(Dividend included above)

(Foreign Exchange Gain/Loss included above)

Income before Taxes

Income Taxes

Net Income

Net Income Attributable to Owners of the Parent

Net Income Attributable to Non-Controlling Interests

*1 Share of profit of associates and joint ventures included.

131.3		109.8		21.5
86,100		47,700		38,400
				(Billions of Yen)
FY2022 1Q		FY2021 1Q		Difference
1,106.5		928.3		178.2
72.1		88.7		(16.6)
(4.1)		(1.7)		(2.4)
68.0		87.0		(19.0)
7.1		(1.7)		8.8
[7.8]		[3.8]		[4.0]
[3.7]		[(0.0)]		[3.7]
75.1		85.3		(10.2)
(21.8)		(26.1)		4.3
53.3		59.2		(5.9)
44.9		49.9		(5.0)
8.4		9.3		(0.9)
4.0	4.6		(0.6)

20%

81%

%

19%

(19%)

(22%)

(12%)

(10%)

125.0
81,000
FY2022 1H
Forecast	% to 1H
(Announced
on May 13)	Forecast
2,162.0	51%
125.0	58%
(4.0)
121.0	56%
(5.0)

116.0 65%

(36.0)

80.0

61.5 73%

18.5

Core operating income is calculated as operating income (loss) excluding certain gains and expenses attributable to non-recurring factors (losses incurred by business withdrawal and streamlining, etc.).

4 Mitsubishi Chemical Group Corporation

Sales Revenue and Core Operating Income by Business Segment

(Billions of Yen)

					FY2022 1Q		FY2021 1Q		Difference	%
		Total Consolidated	Sales Revenue		1,106.5		928.3		178.2	19%
		Core Operating Income		72.1		88.7		(16.6)	(19%)
		Polymers & Compounds	Sales Revenue		88.4		80.1		8.3
		Core Operating Income		6.7		8.0		(1.3)
		Films & Molding Materials	Sales Revenue		137.0		120.2		16.8
		Core Operating Income		10.9		15.3		(4.4)
		Advanced Solutions	Sales Revenue		94.1		82.8		11.3
		Core Operating Income		3.6		3.3		0.3
	Performance Products	Sales Revenue		319.5		283.1		36.4	13%
	Core Operating Income		21.2		26.6		(5.4)	(20%)
		MMA	Sales Revenue		80.0		77.6		2.4
		Core Operating Income		2.6		12.3		(9.7)
		Petrochemicals	Sales Revenue		186.3		160.4		25.9
		Core Operating Income		6.7		16.0		(9.3)
		Carbon Products	Sales Revenue		92.7		53.9		38.8
		Core Operating Income		9.6		6.5		3.1
	Chemicals	Sales Revenue		359.0		291.9		67.1	23%
	Core Operating Income		18.9		34.8		(15.9)	(46%)
	Industrial Gases	Sales Revenue		273.9		216.8		57.1	26%
	Core Operating Income		29.5		23.8		5.7	24%
	Health Care	Sales Revenue		103.4		98.4		5.0	5%
	Core Operating Income		3.3		4.7		(1.4)	(30%)
	Others	Sales Revenue		50.7		38.1		12.6
	Core Operating Income		(0.8)		(1.2)		0.4
			[Inventory valuation gain/loss]
			Polymers & Compounds		0.3		1.0		(0.7)
			Petrochemicals		22.0		9.0		13.0
			Carbon Products		8.2		(0.6)		8.8
			Total		30.5		9.4		21.1

* Breakdown figures of segment are approximation for reference purpose only

FY2022 1H
Forecast	% to 1H
(Announced
on May 13)	Forecast

2,162.0 51%

125.0 58%

164.0

12.5

257.0

20.0

194.0

8.0

615.0 52%

40.5 52%

173.0

17.0

398.0

6.5

192.0

11.5

763.0 47%

35.0 54%

468.0 59%

50.5 58%

204.0 51%

1.0 330%

112.0

(2.0)

5 Mitsubishi Chemical Group Corporation