Business Performance Forecast

Consolidated Results Forecasts

（Billions of yen）

Forecast of full-year results for the fiscal year ended March 31, 2026, the MGC Group expects net sales to fall short of that recorded for the fiscal year ended March 31, 2025, due mainly to the appreciation of the yen and the Group’s withdrawal from the ortho-xylene chain business.
The Group also forecasts a year-on-year decrease in operating profit despite expected growth in earnings from higher sales volumes of such products as electronics materials and optical materials as well as meta-xylenediamine and its derivatives. This projection is based primarily on higher depreciation costs stemming from aggressive growth investment, higher R&D expenses, and the appreciation of the yen.
Furthermore, the Group anticipates a year-on-year decrease in ordinary profit due to lower operating profit, a decline in equity in earnings of affiliates, an increase in interest expenses and other factors.
Similarly, the Group expects profit attributable to owners of the parent to decrease from the fiscal year ended March 31, 2025 due mainly to lower ordinary profit along with other factors.

Looking at the possible impact of tariff measures invoked by the United States, the MGC Group considers their probable direct impact on operating results to be insignificant as the Group’s exports to said country account only for approximately 5% of its consolidated net sales. However, the MGC Group also understands that these tariffs could alter the global supply and demand balance and, accordingly, may indirectly affect its supply chain as a whole. Because the effect of such indirect impact remains largely unclear, the Group has yet to fully incorporate it into assumptions used for the formulation of its currently disclosed operating results forecasts. Going forward, the Group will implement such measures as transferring tariff-related costs to sales prices and optimizing the supply chain. If the Group recognizes the emergence of a factor that may materially affect its operating results, it will disclose that factor in a timely manner.

The above forecasts assume exchange rates of ¥140=$1 and ¥160=€1.

Forecast by Segment

（Billions of yen）