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Corporate Report 2019 Mitsubishi Building 5-2, Marunouchi 2-chome Chiyoda-ku, Tokyo 100-8324 Corporate Communications Division Tel: +81-3-3283-5041 Fax: +81-3-3287-0833 https://www.mgc.co.jp/eng/ Corporate Report 2019 Contents 3 Mitsubishi Gas Chemical at a Glance 16 Growth Strategy 17 ● Natural Gas Chemicals Company A History of Creating Value 5 19 ● Aromatic Chemicals Company 21 ● Specialty Chemicals Company 1970s 1990s 23 ● Information & Advanced Materials Company Philosophy for Being 1980s Since1918 2000s 25 ● New Businesses 27 ● Research and Development MGC contributes to societal growth and harmony by 7 To Our Stakeholders creating a wide range of value through chemistry. Masashi Fujii President and Representative Director MGC Group Vision “Creating value to share with society” 29 Strengths Supporting Growth (CSR/ESG) 30 Environment and Safety Management System Management Concept (Responsible Care) 32 Initiatives for the Environment ● MGC management is striving to create a place where there is job satisfaction and MGC Group Eco-Friendly Products a dynamic group in which motivations and abilities are respected 33 35 Initiatives Toward Safe, Stable Operations ● Marketing that watches the world to ascertain needs, and expands/creates markets Medium-term Management Plan Initiatives for Quality ● Creative research/development that deeply understands needs, and refines the seeds that 12 36 will bring forth success 37 Together with Stakeholders Business areas ● Fundamental objective 1 Production activities that work toward improved technology, environmental preservation, Enhance the corporate value Corporate Governance of the MGC Group Medical / food 45 Fluctuating international conditions Strategy 1 Strengthen the earning power ensure safety, and provide better products of existing Changing demographics businesses Information / communications 49 Compliance and Risk Management Strategy 2 Strategy 3 Technological innovation Create and Implement develop new strategic ● businesses MGC Group Vision investment An open corporate culture in which each person can share their goals and actively participate Social issues Value provided Problems solved Creating value to Global warming share with society Mobility Biodiversity crisis Strategy 4 Strategy 5 Promote unified Improve total MGC Group enterprise quality management Reducing environmental impact Energy Fundamental objective 2 Deepen the trust of Promotion of diversity MGC Group stakeholders Principles of Conduct Infrastructure As a Professional Group 1. Courage that does not shy away from change 12 State of Progress of the Medium-term 2. Aim for lofty goals Management Plan 52 Financial Information 3. Perseverance in achieving goals 13 State of Progress of the Five Strategies Shareholder Information 4. Build team spirit with communication 62 15 Five Business Domains and Main Related Businesses and Products 63 Corporate Data Editorial Policy In 2018, Mitsubishi Gas Chemical decided to consolidate its Scope of This Report presentation of financial and non-financial information into a single Mitsubishi Gas Chemical Company, Inc. (MGC) and MGC Group Corporate Report combining both financial and non-financial (where the scope of reporting differs, it is noted in the data). information. To offer an easy-to-follow description of the Reporting Period management strategies designed to achieve the MGC Group April 1, 2018–March 31, 2019 (Some activities taking place in or Vision of “Creating value to share with society,” it offers the after April 2019 are also noted.) perspective of an integrated report while bringing together Note that Responsible Care activities cover only the period information on MGC’s Medium-term Management Plan, growth between January 1, 2018 and December 31, 2018 (Some strategy, and CSR/ESG information, as well as financial information activities taking place in or after January 2019 are also noted.) and other data. We hope that by reviewing this report, our Published stakeholders will gain a deeper understanding of MGC Group. November 2019 1 MITSUBISHI GAS CHEMICAL COMPANY, INC. Corporate Report 2019 MITSUBISHI GAS CHEMICAL COMPANY, INC. Corporate Report 2019 2 A History of Medium-term Strengths Supporting Shareholder At a Glance Creating Value To Our Stakeholders Management Plan Growth Strategy Growth Financial Information Information Corporate Data Mitsubishi Gas Chemical at a Glance (As of End of March, 2019) Mitsubishi Gas Chemical’s Four In-house Companies and New Businesses Launched as MGC Net sales ■ Methanol and Organic Chemical Products Business Natural Gas ●Methanol Chemicals Company ●Ammonia October 1, 1971 ●Amine Originally founded 1918; Incorporated 1951 648.9 billion yen ■ Life Science Business ●Health food ingredients/Antibody drugs ■ Energy & Resources Business ●Geothermal power/Natural gas Capital Operating income ■ Aromatic Chemicals Business Aromatic yen yen ●Meta-xylenediamine/MX Nylon Chemicals 41.97 billion 41.3 billion ●Meta-xylene/Purified isophthalic acid Company ●Aromatic aldehydes ■ Foamed Plastic Business ●Foamed plastic Number of employees (consolidated) Ordinary income 8,276 Non-consolidated 2,355 69.1 billion yen ■ Inorganic Chemicals Business Specialty Chemicals ●Hydrogen peroxide Company ●Electronic chemicals Number of Group companies Net income attributable to ■ Engineering Plastics Business TM (subsidiaries and affiliates) owners of the parent ●Polycarbonate (Iupilon )/ Polycarbonate sheet, Polycarbonate film ●Polyacetal (IupitalTM) 150 55.0 billion yen ■ Optical Materials Business ●Special polycarbonate (IupizetaTM) ■ Electronics Materials Business Information & Advanced Product varieties R&D costs ●BT materials for semiconductor packaging ●Auxiliary material for drilling (LE SHEETTM) Materials Company ■ Oxygen Absorbers Business ●Oxygen absorbers for food (AGELESSTM) Approx.110 18.6 billion yen ●Oxygen absorbers for medical use (PharmaKeepTM) Number of stockholders Cost of environmentally friendly R&D ●Medical packaging materials―OXYCAPTTM New ●Solid electrolytes Businesses ●Factory-produced vegetables―leaf lettuce and other leafy greens 23,235 2.6 billion yen ●Active optical cable―TeraWireTM 3 MITSUBISHI GAS CHEMICAL COMPANY, INC. Corporate Report 2019 MITSUBISHI GAS CHEMICAL COMPANY, INC. Corporate Report 2019 4 A History of Medium-term Strengths Supporting Shareholder At a Glance Creating Value To Our Stakeholders Management Plan Growth Strategy Growth Financial Information Information Corporate Data A History of Creating Value 648.9 billion yen (Fiscal year ended March 31, 2019) 1952 1971 Methanol Polycarbonate “Iupilon®TM”” 1991 First in Japan to Developed transparent resinous 1980 Plastic lens monomer manufacture methanol from sheets as an alternative to glass. Nylon MXD6 Reny®TM Developed thin, lightweight plastic natural gas. 1927 Formalin Used as an engineering plastic lenses as a replacement for glass. First in Japan to replacement for metal in automobiles, manufacture formalin. allowing for lighter-weight vehicles. 2015 1933 OXYCAPTTM plastic syringes Hydrogen peroxide and vials First in Japan to manufacture 1976 Developed safe, reliable hydrogen peroxide using the 1968 BT materials plastic medical instruments. electrolytic process. Xylene separation and Used as replacement for 1991 isomerization apparatus then-mainstream ceramics in “PharmaKeepTM” World’s first use of superacid semiconductor packaging, “AnaeroPackTM” “HF-BF3” in industrial applications. contributing to the popularization of Expanded use of oxygen personal computers. absorbing technology to the drug management and pathogen 1982 exam fields. Foamed polypropylene Used in automobile bumpers. High shock absorbency contributes to enhanced safety performance, and light weight contributes to lighter-weight vehicles. 2015 1937 1969 1977 Pyrroloquinoline Meta-xylenediamine quinone (PQQ) Laminated material for AGELESS®TM oxygen oxygen absorbers absorbers Full-scale roll-out in Japan printed circuit boards (PCBs) Developed coating raw material with Enabled food to maintain excellent curability and durability. of a food ingredient that First in Japan to develop the base its freshness. leads to healthy longevity. materials for PCBs. 2006 Specialty polycarbonate resinresin“Iupizeta “Iupizeta®TM” ” Enabled the achievement of compact, high-resolution 143.7 billion yen cameras for smartphones and (Fiscal year ended March 31, 1978) other mobile devices. 127.9 billion yen 1984 Awarded the 49th Ichimura Prize in Industry (Fiscal year ended March 31, 1977) MX Nylon in April 2017. Made it possible to replace glass bottles with plastic for 1971 carbonated beverages. 1951 Mitsubishi Gas Chemical Company, Inc. (Former) Japan Gas Chemical Co., Inc. Launched Incorporated 25.3 billion yen (Fiscal year ended September 30, 1971) 1918 (Former) Mitsubishi Edogawa Chemical Co., Ltd. 1971 1975 1980 1985 1990 1995 2000 2005 2010 2015 2019 Founded Net sales Note: Consolidated accounting began with the fiscal year ended March 31, 1978. 5 MITSUBISHI GAS CHEMICAL COMPANY, INC. Corporate Report 2019 MITSUBISHI GAS CHEMICAL COMPANY, INC. Corporate Report 2019 6 A History of Medium-term Strengths Supporting Shareholder At a Glance Creating Value To Our Stakeholders Management Plan Growth Strategy Growth Financial Information Information Corporate Data To Our Stakeholders We are steadily advancing the priority measures of the What is the Company’s status since numerous uncertainties, including trade conditions, in the you were appointed president in global economy as well as in the markets