Notice Regarding Non-Operating Expenses and Extraordinary Losses, Differences between Full-Year Forecasts and Results, and Reduction of Remuneration

Company name: Mitsubishi Gas Chemical Company, Inc.
Representative: Yoshinori Isahaya, Representative Director & President
Securities code: 4182 (The Prime Market of the Tokyo Stock Exchange)
Contact: Satoshi Takizawa, Division Director, CSR & IR Division
TEL: +81-3-3283-5041

Notice Regarding Non-Operating Expenses and Extraordinary Losses, Differences between Full-Year Forecasts and Results, and Reduction of Remuneration 

 Mitsubishi Gas Chemical Company, Inc. (MGC) hereby announces the recording of non-operating expenses consisting of equity in losses of affiliates for the fourth quarter (January 1 to March 31, 2026) of the fiscal year ended March 31, 2026. MGC simulatneously presents impairment losses and other items in extraordinary losses for the same period. Moreover, MGC discloses the difference between its full-year forecasts (announced on February 10, 2026) and actual results (released today) for both its consolidated and non-consolidated operating results of the fiscal year ended March 31, 2026. In addition, MGC reached a decision to reduce remuneration for directors and officers. Details follow.

1. Recording of equity in losses of affiliates (consolidated results)

 In conjunition with its consolidated operating results for the fiscal year ended March 31, 2026, impairment losses were recorded at Caribbean Gas Chemical Limited, a methanol producing company based in the Republic of Trinidad and Tobago, in connection with noncurrent assets in its possession. This company is an equity method affiliate of MGC. Reflecting this, MGC recorded equity in losses of affiliates totaling JPY 4.2 billion and included this amount in non-operating expenses.

2. Recording of extraordinary losses (consolidated results)

 MGC recorded extraordinary losses totaling JPY 18.9 billion due to the recording of impairment losses of noncurrent assets in connection with MGC Pure Chemicals Taiwan, Inc., a Taiwan-based consolidated subsidiary that manufactures chemicals for use in semiconductor manufacturing, as well as MGC’s polycarbonate business. Moreover, MGC Specialty Chemicals Netherlands B.V., a consolidated subsidiary that manufactures meta-xylenediamine in the Netherlands, recorded impairment losses and provision for losses on the termination of facility construction. These items have also been consolidated in MGC’s extraordinary losses.

3. Recording of extraordinary losses (non-consolidated results)

 Reflecting the losses recorded in 1. and 2. above, MGC also recorded the following extraordinary losses as part of its non-consolidated operating results for the fourth quarter of the fiscal year ended March 31, 2026. With the exception of impairment losses related to MGC’s polycarbonate business, these extraordinary losses are expected to be eliminated in the course of consolidation and, accordingly, have no impact on consolidated profit or loss.

4.  Difference between full-year forecasts and actual results for the fiscal year ended March 31, 2026

 (1) Difference between forecasts and actual results on a consolidated basis

 (2) Difference between forecasts and actual results on a non-consolidated basis

5. Reasons for differences

 With regard to operating results for the fiscal year ended March 31, 2026, net sales and operating profit have not deviated greatly from previous forecasts. On the other hand, ordinary profit fell short of the previous forecast due mainly to the factors explained in “1. Recording of equity in losses of affiliates (consolidated results)” above. Profit attributable to owners of parent and Net Profit similarly fell short of the previous forecast due mainly to factors explained in “2. Recording of extraordinary losses (consolidated results)” and “3. Recording of extraordinary losses (non-consolidated results)” above.

6. Reduction of remuneration for directors and officers

 MGC hereby announces that its Board of Directors passed a resolution at a meeting held today to reduce remuneration for directors and officers in connection with extraordinary losses posted as part of its consolidated operating results for the fiscal year ended March 31, 2026, and the resulting recording of a heavy loss attributable to owners of parent. The Board reached this decision as it takes the above results seriously and intends to clarify responsibilities regarding these setbacks. Details follow.

          1．Reduction ratio for recipients
                    Representative Director and Chairman, Representative Director and President:
                    Reduce 30% of monthly remuneration

                    Senior Managing Executive Officers, Managing Executive Officers:
                    Reduce 20% of monthly remuneration

                    Senior Executive Officers, Executive Officers:
                    Reduce 10% of monthly remuneration

          2．Period in which remuneration is reduced
                    From July to September 2026 (three months)

END