三菱ケミカルホールディングス（4188） – Operational Summary for the Third Quarter of the Fiscal Year Ending March 31, 2022

Operational Summaryfor the Third Quarter of the Fiscal Year Ending March 31, 2022February 3, 2022Mitsubishi Chemical Holdings CorporationTable of ContentsConsolidated Financial Statements for FY2021 3Q Page No.References 1Page No.Statements of OperationsStatements of Operations [Quarterly Data]Sales Revenue and Core Operating Income (Loss) by Business SegmentSales Revenue and Core Operating Income (Loss)by Business Segment [Quarterly Data]Analysis of Core Operating Income (Loss)Business Segment InformationOverview of Business SegmentsTrends in Management IndicatorsSpecial ItemsCash FlowsStatements of Financial PositionsReferences 2Page No.Business Results (MTPC)45671112131516171823Mitsubishi Chemical Holdings Corporation has adopted IFRS starting with FY2016 1Q.2List of AbbreviationsFY2021April 1, 2021 – March 31, 20221st Quarter (1Q):April 1, 2021 – June 30, 20212nd Quarter (2Q):July 1, 2021 – September 30, 20213rd Quarter (3Q):4th Quarter (4Q):1st Half (1H):2nd Half (2H):October 1, 2021 – December 31, 2021January 1, 2022 – March 31, 2022April 1, 2021 – September 30, 2021October 1, 2021 – March 31, 2022FY2020April 1, 2020 – March 31, 20211st Quarter (1Q):April 1, 2020 – June 30, 20202nd Quarter (2Q):July 1, 2020 – September 30, 20203rd Quarter (3Q):4th Quarter (4Q):1st Half (1H):2nd Half (2H):October 1, 2020 – December 31, 2020January 1, 2021 – March 31, 2021April 1, 2020 – September 30, 2020October 1, 2020 – March 31, 2021MCHCMCCMTPCLSIIMitsubishi Chemical Holdings CorporationMitsubishi Chemical CorporationMitsubishi Tanabe Pharma CorporationLife Science Institute, Inc.NSHD Nippon Sanso Holdings Corporation3Consolidated Statements of OperationsCore 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.).4Exchange Rate (¥/$)114.2111.5104.0105.5108.95.96%2.6Naphtha Price (¥/kl)60,70053,90031,30028,80042,30025,10087%11,600(Billions of Yen)3Q3Q% Sales Revenue1,015.22,900.3850.62,355.42,730.8544.923%169.5 Core Operating Income *162.8218.959.0113.6181.0105.393%37.9 Special Items2.3(0.7)(30.2)(112.9)(20.4)112.219.7 Operating Income (Loss)65.1218.228.80.7160.6217.5－57.6 Financial Income/Expenses(4.1)(10.0)(4.8)(13.5)(15.9)3.55.9　 (Dividend included above)[0.9][4.8][0.7][3.5][4.1][1.3][0.7] 　(Foreign Exchange Gain/Loss included above)[0.2][0.9][(0.3)][(0.7)][(2.4)][1.6][3.3] Income (Loss) before Taxes61.0208.224.0(12.8)144.7221.0－63.5 Income Taxes(15.6)(60.9)(12.5)(15.6)(53.3)(45.3)(7.6)Net Income (Loss) fromContinuing Operations45.4147.311.5(28.4)91.4175.755.9—-16.9-(16.9) Net Income (Loss)45.4147.311.5(28.4)108.3175.739.0Net Income (Loss) Attributable to Owners of the Parent36.9122.11.9(47.8)76.3169.9－45.8Net Income Attributable to Non-Controlling Interests8.525.29.619.432.05.8(6.8)*1 Share of profit of associates and joint ventures included.4.113.74.25.310.78.43.0*2 Discontinued operations are not included.Continuing Operations * 2 Net Income from Discontinued Operations Nine MonthsEndedDec. 31, 2021Nine MonthsEndedDec. 31, 2020Nine MonthsEndedDec. 31, 2019DifferenceDifference vs.Nine Months EndedDec. 31, 2019Sales Revenue and Core Operating Income (Loss) by Business Segment*1 Breakdown figures of segment are approximation for reference purpose only.*2 From Q1 FY2021, in tandem with building an organizational structure that conforms to growth business domains in KAITEKI Vision 30, the medium- to long-term basic management strategy for MCHC, the conventional breakdown of performance products into two classifications, functional products and performance chemicals, will be changed into three classifications, polymers and compounds, films and molding materials, and advanced solutions. In addition, the company is reclassifying the managing segments for some of its businesses and consolidated subsidiaries. Accordingly, for purposes of comparison, we are restated the results for FY2020.5(Billions of Yen)1Q2Q3QSales Revenue928.3956.81,015.22,900.32,355.4544.9Core Operating Income88.767.462.8218.9113.6105.3Sales Revenue80.178.876.6235.5195.140.4Core Operating Income8.03.81.112.99.53.4Sales Revenue120.2117.9119.7357.8302.555.3Core Operating Income15.311.87.234.321.213.1Sales Revenue82.886.985.9255.6223.831.8Core Operating Income3.33.63.410.312.3(2.0)Sales Revenue283.1283.6282.2848.9721.4127.5Core Operating Income26.619.211.757.543.014.5Sales Revenue77.673.473.3224.3165.858.5Core Operating Income12.312.54.729.55.923.6Sales Revenue160.4171.8189.9522.1329.2192.9Core Operating Income16.010.57.133.6(12.4)46.0Sales Revenue53.956.964.6175.4130.245.2Core Operating Income6.54.49.520.4(2.5)22.9Sales Revenue291.9302.1327.8921.8625.2296.6Core Operating Income34.827.421.383.5(9.0)92.5Sales Revenue216.8227.3242.5686.6587.599.1Core Operating Income23.824.525.673.958.915.0Sales Revenue98.4100.1113.6312.1299.712.4Core Operating Income4.7(3.6)3.54.622.4(17.8)Sales Revenue38.143.749.1130.9121.69.3Core Operating Income(1.2)(0.1)0.7(0.6)(1.7)1.1[Inventory valuation gain/loss]Polymers & Compounds1.00.90.82.70.02.7Petrochemicals9.07.49.025.4(14.6)40.0Carbon Products(0.6)1.14.44.9(1.3)6.2Total9.49.414.233.0(15.9)48.9Nine MonthsEndedDec. 31, 2021Nine MonthsEndedDec. 31, 2020DifferenceTotal ConsolidatedPolymers & CompoundsAdvanced SolutionsPerformance ProductsMMAPetrochemicals Films & Molding MaterialsOthersIndustrial GasesHealth Care Carbon ProductsChemicalsAnalysis of Core Operating Income (Loss)6(Billions of Yen)PriceVolumeCostreductionOthers *Total Consolidated218.9113.6105.319.578.213.1(5.5)Performance Products57.543.014.5(8.8)29.63.0(9.3)Chemicals83.5(9.0)92.532.317.37.435.5Industrial Gases73.958.915.02.317.40.1(4.8)Health Care4.622.4(17.8)(6.5)12.02.6(25.9)Others(0.6)(1.7)1.10.21.90.0(1.0)* Items included are impacts from inventory valuation gain/loss and share of profit of associates and joint ventures, etc.2.58.90.4-(6.8)5.5Nine MonthsEndedDec. 31, 2021Nine MonthsEndedDec. 31, 2020DifferenceChanges inexchange ratesChanges in foreign currencytranslation included in above113.6 218.9 ＋19.5 ＋78.2 ＋13.1 (5.5) 0.050.0100.0150.0200.0250.0Nine MonthsEndedDec. 31, 2020PriceVolumeCost reductionOthersNine MonthsEndedDec. 31, 2021Performance Products SegmentSales RevenueCore OperatingIncomeSales RevenueCore OperatingIncomeSales RevenueCore OperatingIncomePolymers & CompoundsSales revenue increased reflecting a rise in sales volumes for products used in automobiles and other applications, and also an upturn in market prices for some polymers.Profit rose mainly on an increase in sales volumes for products used in automobiles, including performance polymers.Films & Molding MaterialsSales revenue increased reflecting a rise in sales volume mainly for molding materials used in automobiles and other applications in tandem with a recovery in demand, and there was also brisk sales trends mainly in 1H primarily for films used for optical applications for displays as well as for other applications.Profit increased on the back of a rise in sales volumes and despite higher raw material prices.Advanced SolutionsSales revenue grew underpinned primarily by an increase in sales volume accompanying a recovery in economic activities.Although there was an increase in sales volumes, profit decreased mainly due to a rise in raw material prices.・MCC has decided to construct a new Sugar Ester production line (an annual production capacity of 2,000 tons )at the Fukuoka Plant. MCC plans to launch operations in mid 2023.・In September 2021, MCC agreed to transfer its polycrystalline alumina fiber business and the same businessof Mitsubishi Chemical High-Technica Corporation to a special purpose company held by funds managedby affiliates of Apollo Global Management, Inc.・ MCC has decided to expand its polyester film production capacity (German annual production 55,000 tons to82,000 tons) at its consolidated subsidiary, Mitsubishi Polyester Film GmbH in anticipation of a growth in globaldemand moving forward. MCC aims to put its new capacity into operation at the end of 2024.・In December 2021, MCC has decided to build a new facility for producing specialty epoxy resins for semiconductorencapsulants and electronic materials at its Fukuoka Plant. MCC aims to launch commercial production in April 2023.7(Billions of Yen)Nine MonthsEndedDec. 31, 2021Nine MonthsEndedDec. 31, 2020DifferenceSales Revenue235.5195.140.4Core Operating Income12.99.53.4Sales Revenue357.8302.555.3Core Operating Income34.321.213.1Sales Revenue255.6223.831.8Core Operating Income10.312.3(2.0)Sales Revenue848.9721.4127.5Core Operating Income57.543.014.5Polymers &CompoundsAdvanced SolutionsPerformance ProductsFilms & MoldingMaterials＜Analysis of Core Operating Income＞43.0 57.5 ＋29.6 ＋3.0 (8.8) (9.3) 0.010.020.030.040.050.060.070.0Nine MonthsEndedDec. 31, 2020PriceVolumeCost reductionOthersNine MonthsEndedDec. 31, 2021Chemicals SegmentSales RevenueSales revenue expanded owing to a rise in the market price for MMA monomer given strong demand trends.Core Operating IncomeProfit grew primarily reflecting an expansion in price gap between raw materials and products in tandem with higher market prices, chiefly for MMA monomer.MMAPetrochemicalsSales RevenueSales revenue expanded. In addition to a growth in sales prices in tandem with higher raw material prices, sales volumes also rose reflecting smaller impact from scheduled maintenance and repairs to ethylene production facility and a recovery in demand.Core Operating IncomeProfit increased owing to smaller impact from scheduled maintenance and repairs, an expansion in sales volumes, and in improvement in the inventory valuation gain/loss arisen from higher raw material prices.Carbon ProductsSales revenue rose reflecting higher sales volumes in tandem with an overall recovery in demand as well as a rise in selling prices for export coke.Profit increased due to a rise in market prices for export coke.Sales RevenueCore Operating Income・Japan Polychem Corporation, decided in April 2021 to acquire equity in six overseas group companies owned by Japan Polypropylene Corporation, including Mytex Polymers US Corporation,and turned them into wholly-owned subsidiaries in July. Mytex Polymers deploys the polypropylene compound and long glass reinforced thermoplasticbusiness. ・ MCC and Mitsubishi Chemical Methacrylates Japan Co., Ltd., decided in May 2021 to carry out verification testing in preparation of the commercialization of chemical recycling for acrylic resins. Regarding the recovery, chemical recycling and reuse of acrylic resins, both companies are carrying out an examination of a scheme along with Honda Motor Co., Ltd. and are jointly implementing a verification of a recycling system that uses this verification facility.・ In July 2021, MCC and ENEOS Corporation decided to construct a chemical recycling facility at the MCC Ibaraki Plantto commence a joint Plastic-to-Oil Conversion Business. The facility will have an annual processing capacity of 20,000tons, which will be the largest-scale in Japan as commercial basis. MCC and ENEOS aim to commence operationsin FY2023. Moreover, in tandem with the construction of this facility, in July 2021 MCC signed a basic agreementwith Refinverse, Inc. to procure waste plastics to be used as raw material.8(Billions of Yen)Nine MonthsEndedDec. 31, 2021Nine MonthsEndedDec. 31, 2020DifferenceSales Revenue224.3165.858.5Core Operating Income29.55.923.6Sales Revenue522.1329.2192.9Core Operating Income33.6(12.4)46.0Sales Revenue175.4130.245.2Core Operating Income20.4(2.5)22.9Sales Revenue921.8625.2296.6Core Operating Income83.5(9.0)92.5MMAPetrochemicalsCarbon ProductsChemicals＜Analysis of Core Operating Income＞(9.0)83.5+17.3＋7.4＋35.5+32.3(20.0)0.020.040.060.080.0Nine MonthsEndedDec. 31, 2020PriceVolumeCost reductionOthersNine MonthsEndedDec. 31, 2021Industrial Gases SegmentIndustrial GasesSales RevenueSales revenue increased reflecting an overall recovery in demand in Japan and overseas.Core Operating IncomeCore operating income increased reflecting an overall recovery in demand in Japan and overseas.・In November 2021, NSHD has decided to successively boost, through the end of 2023, its production capacity for diborane gas, which is an electronic materials gas used in the semiconductor device fabrication process, at sites in Japan, South Korea and China. Going forward, the company aims to address demandin the electronics industry and to fortify its supply chain.9(Billions of Yen)Nine MonthsEndedDec. 31, 2021Nine MonthsEndedDec. 31, 2020DifferenceSales Revenue686.6587.599.1Core Operating Income73.958.915.0Industrial Gases＜Analysis of Core Operating Income＞58.9 73.9 ＋2.3＋17.4＋0.1(4.8) 30.040.050.060.070.080.090.0Nine MonthsEndedDec. 31, 2020PriceVolumeCost reductionOthersNine MonthsEndedDec. 31, 2021Health Care SegmentHealth CareSales RevenueSales revenue climbed. Although there was negative impact from National Health Insurance drug price revisions in the domestic ethical pharmaceuticals business, this was offset by a growth in sales volumes mainly for priority products.Core OperatingIncomeCore operating income was down primarily due to an increase in research and development expenditures for a COVID-19 vaccine.Note: Royalty revenue from Novartis Pharma AG for Gilenya, a treatment agent for multiple sclerosis, was reduced, because a part of the royalty revenue was not recognized as sales revenue in accordance with IFRS 15 due to the start of arbitration proceedings. ・In April 2021, LSII started clinical trials for the Muse cell-based product CL2020 in patients with acute respiratory distress syndrome triggered by COVID-19, in addition to application as a treatment for acute myocardial infarction, ischemic stroke, epidermolysis bullosa, spinal cord injury and amyotrophic lateral sclerosis (ALS). ・In October 2021, MTPC launched phase-I/II clinical trials in Japan for MT-2766, a plant-derived virus likeparticle(VLP) vaccine being developed by its consolidated subsidiary, Medicago Inc. to prevent COVID-19.In addition, in December 2021, Medicago Inc. applied for approval for the sales and manufacturing of vaccinein Canada, owing to the positive results obtained during the phase-III part of the phase-II/III clinical trials.10＜Analysis of Core Operating Income＞22.4 4.6＋12.0 ＋2.6 (6.5) (25.9) 0.05.010.015.020.025.030.035.0Nine MonthsEndedDec. 31, 2020PriceVolumeCost reductionOthersNine MonthsEndedDec. 31, 2021(Billions of Yen)Nine MonthsEndedDec. 31, 2021Nine MonthsEndedDec. 31, 2020DifferenceSales Revenue312.1299.712.4Core Operating Income4.622.4(17.8)Health CareConsolidated Special Items11(Billions of Yen)3QTotal Special Items2.3(0.7)(112.9)112.2Loss on sale and disposal of fixed assets(0.9)(3.6)(4.4)0.8Impairment loss(0.9)(2.8)(107.2)104.4Special retirement expenses(1.3)(1.9)(5.4)3.5Provision for loss on plant closure- – (3.3)3.3Cancellation penalty- – (1.9)1.9Gain on sale of property, plant and equipment6.68.48.6(0.2)Gain on sales of shares of subsidiaries and associates- 1.90.91.0Share of profit of associates and joint ventures- – 2.7(2.7)Gain on step acquisitions- – 1.3(1.3)Others(1.2)(2.7)(4.2)1.5[Special Items by Business Segment]Performance Products(2.4)(3.7)(4.0)0.3Chemicals(0.4)(0.9)(26.0)25.1Industrial Gases(0.0)(0.0)2.7(2.7)Health Care4.83.2(79.5)82.7Others0.30.7(6.1)6.8FY2021 3QFY2020 3QDifferenceConsolidated Cash Flows12Reference)Adjusted cashflows *1(Billions of Yen)Net cash provided by (used in) operating activities248.0272.2272.2Income before taxes 208.2(12.8)(12.8)Depreciation and amortization186.6181.0181.0Change in operating receivables/payables(0.1)(42.4)(42.4)Change in Inventories(105.9)46.146.1Others(40.8)100.3100.3Net cash provided by (used in) investment activities(140.6)(148.8)(218.8)Capital expenditure(182.7)(184.4)(184.4)Sale of assets 53.724.324.3Investment and loans receivable, etc.(11.6)11.3(58.7) Free cash flow107.4123.453.4Net cash provided by (used in) financing activities(200.6)(34.8)Interest bearing debts(141.7)102.8Additional acquisition of consolidated subsidiaries’ stocks(0.4)(98.5)Dividends, etc.(58.5)(39.1)Net increase (decrease) in cash and cash equivalents(93.2)88.6Effect of exchange rate changes and changes in scope of consolidation2.94.3 Cash and cash equivalents at the beginning of the period349.6228.2 Cash and cash equivalents at the end of the period259.3321.1Based on statementsof cash flowsNine MonthsEndedDec. 31, 2021Nine MonthsEndedDec. 31, 2020Nine MonthsEndedDec. 31, 2020*1 Adjusted cash flows based on actual results are calculatedby excluding cash flows from investment of surplus funds for explanatory purposes.*2 Additional acquisitions of MTPC shares(¥95.4 billion in FY 2020 )*2Consolidated Statements of Financial Positions13(Billions of Yen)(Billions of Yen)Dec.31.2021Mar.31.2021DifferenceDec.31.2021Mar.31.2021Difference259.3349.6(90.3) Interest-bearing debt2,375.32,482.4(107.1)802.0716.485.6 Trade payables469.8382.387.5684.3576.5107.8 Others907.6851.456.2208.1155.053.1Liabilities3,752.73,716.136.6Current assets1,953.71,797.5156.2 Share capitals, Retained earnings, etc,.1,317.81,226.591.32,278.12,269.28.930.19.820.3680.0671.98.11,347.91,236.3111.6546.0548.6(2.6) Non-controlling interests357.2334.822.4Non-current assets3,504.13,489.714.4 Equity1,705.11,571.1134.05,457.85,287.2170.65,457.85,287.2170.6Net Interest-bearing debt *12,115.92,132.8(16.9)Net D/E ratio1.571.73(0.16)24.7%23.4%1.3%ROE *2-(0.6%)-*1 Net interest-bearing debt (End of Dec.31, 2021) = interest-bearing debt (2,375.3 billion yen) – {cash and cash equivalents (259.3 billion yen) + investments of surplus funds (0.1 billion yen)} Note： Interest-bearing debt includes lease obligations.*2 Ratio of net income attributable to owners of the parent.Ratio of Equity attributable to owners of the parent Total liabilities & equity Cash & cash equivalents Trade receivables Inventories Others Fixed assets Other components of equity Goodwill Equity attributable to owners of the parent Investments & OtherTotal assetsReferences 114Statements of Operations [Quarterly Data]*1 Share of profit of associates and joint ventures included.*2 Discontinued operations are not included.15Exchange Rate (¥/$)109.7107.7109.3109.1107.4105.3104.0107.2109.8110.4114.2Naphtha Price (¥/kl)45,40040,20041,30044,80025,00030,20031,30038,80047,70053,50060,700(Billions of Yen)1Q2Q3Q4Q1Q2Q3Q4Q1Q2Q3Q Sales Revenue916.4911.3903.1849.7722.7782.1850.6902.1928.3956.81,015.2 Core Operating Income *170.160.750.213.815.039.659.061.188.767.462.8 Special Items(0.2)0.0(20.2)(30.1)8.7(91.4)(30.2)(14.3)(1.7)(1.3)2.3 Operating Income (Loss)69.960.730.0(16.3)23.7(51.8)28.846.887.066.165.1 Financial Income/Expenses(3.3)(4.9)(7.7)(6.4)(3.3)(5.4)(4.8)(1.1)(1.7)(4.2)(4.1) 　(Dividend included above)[2.9][0.1][1.1][0.1][2.5][0.3][0.7][0.8][3.8][0.1][0.9] 　(Foreign Exchange Gain/Loss included above)[(0.3)][0.7][(2.8)][(1.3)][0.0][(0.4)][(0.3)][3.1][(0.0)][0.7][0.2] Income (Loss) before Taxes66.655.822.3(22.7)20.4(57.2)24.045.785.361.961.0 Income Taxes(18.2)(19.4)(15.7)1.0(12.2)9.1(12.5)5.4(26.1)(19.2)(15.6)Net Income (Loss) fromContinuing Operations48.436.46.6(21.7)8.2(48.1)11.551.159.242.745.40.516.4——— Net Income (Loss)48.952.86.6(21.7)8.2(48.1)11.551.159.242.745.4Net Income (Loss) Attributable to Owners of the Parent37.843.5(5.0)(22.2)5.2(54.9)1.940.249.935.336.9Net Income (Loss) Attributable to Non-Controlling Interests11.19.311.60.53.06.89.610.99.37.48.55.03.12.62.70.20.94.27.64.65.04.1FY2020Continuing Operations * 2 Net Income from Discontinued OperationsFY2019FY2021Sales Revenue and Core Operating Income (Loss) by Business Segment [Quarterly Data]*1 Breakdown figures of segment are approximation for reference purpose only. *2 From Q2 FY2020, Qualicaps, Inc. has been reclassified from the Health Care segment to the Performance Products segment (Advanced Solutions).The segment information for FY2020 is accordingly restated.*3 From Q1 FY2021, in tandem with building an organizational structure that conforms to growth business domains in KAITEKI Vision 30, the medium- to long-term basic management strategy for MCHC, the conventional breakdown of performance products into two classifications, functional products and performance chemicals, will be changed into three classifications, polymers and compounds, films and molding materials, and advanced solutions. In addition, the company is reclassifying the managing segments for some of its businesses and consolidated subsidiaries. Accordingly, for purposes of comparison, we are restated the results for FY2020.16(Billions of Yen)1Q2Q3Q4Q1Q2Q3Q1Q2Q3Q4QSales Revenue722.7782.1850.6902.1928.3956.81,015.2Core Operating Income15.039.659.061.188.767.462.870.160.750.313.7Sales Revenue60.162.972.176.880.178.876.6Core Operating Income2.02.64.95.58.03.81.15.54.93.32.7Sales Revenue94.3100.1108.1111.3120.2117.9119.7Core Operating Income5.25.710.36.415.311.87.29.59.76.52.3Sales Revenue69.073.681.285.182.886.985.9Core Operating Income4.15.42.84.83.33.63.45.46.64.21.9Sales Revenue223.4236.6261.4273.2283.1283.6282.2Core Operating Income11.313.718.016.726.619.211.720.421.214.06.9Sales Revenue48.058.359.565.377.673.473.3Core Operating Income(1.9)3.44.47.212.312.54.712.19.4(0.4)(1.9)Sales Revenue93.3107.0128.9150.6160.4171.8189.9Core Operating Income(14.3)(1.4)3.314.116.010.57.11.82.31.5(4.4)Sales Revenue44.439.446.447.253.956.964.6Core Operating Income(1.4)(2.5)1.43.56.54.49.56.02.91.0(1.8)Sales Revenue185.7204.7234.8263.1291.9302.1327.8Core Operating Income(17.6)(0.5)9.124.834.827.421.319.914.62.1(8.1)Sales Revenue182.9198.5206.1224.3216.8227.3242.5Core Operating Income13.522.123.326.223.824.525.621.123.222.221.5Sales Revenue95.298.8105.790.998.4100.1113.6Core Operating Income8.94.59.0(4.5)4.7(3.6)3.59.11.211.6(5.4)Sales Revenue35.543.542.650.638.143.749.1Core Operating Income(1.1)(0.2)(0.4)(2.1)(1.2)(0.1)0.7(0.4)0.50.4(1.2)OthersPolymers & CompoundsAdvanced Solutions Performance ProductsMMAPetrochemicals　Carbon ProductsFilms & Molding Materials　　(Reference) FY2019 Core Operating Income 　 　by Business SegmentFY2019Chemicals Industrial GasesHealth Care Total ConsolidatedFY2020FY2021Business Segment Information17Business Sub-SegmentPolymersPolymersPerformance Polymers, Sustainable PolymersAcetyl Polymers & CompoundsCoating & AdditivesCoating Material, Additives & FineFilmsFilmsPackaging, Industrial Films, Polyester Film & Molding MaterialsMolding MaterialsCarbon Fiber, Advanced Materials, Alumina & FiberAmenity LifeAqua & Infrastructure, Life SolutionsInformation & ElectronicsSemiconductor, Electronics, Battery MaterialsMMAMMAMMAPetrochemicalsPetrochemicalsBasic Petrochemicals, Polyolefins, Basic Chemical DerivativesCarbon ProductsCarbon ProductsCarbon ProductsIndustrialGasesIndustrial GasesPharmaceuticalsLife ScienceBusinessesBusinessDomainBusinessSegmentPerformanceProductsHealth CarePerformanceProductsChemicalsHealth CareAdvanced SolutionsIndustrialMaterialsTrends in Sales Revenue, Core Operating Income and EBITDABillions of YenBillions of Yen18FY2017FY2018FY2019FY2020FY2021 3QFY2021(Forecast)FY2025(Performance Targets)Sales Revenue　(Billions of Yen)3,724.43,840.33,580.53,257.52,900.33,886.03,000Core Operating Income(Billions of Yen)380.5314.1194.8174.7218.9300.0350～370EBITDA　(Billions of Yen)532.1483.4420.0405.6391.9529.8540～560Trends in Indicators for Profitability19FY2017FY2018FY2019FY2020FY2021 3QFY2021(Forecast)FY2025(Performance Targets)EPS　(Yen)147.14117.4926.19(5.32)85.95*1 135.12125～145ROIC　(%)8.0%5.9%3.5%3.3%-5.4%>7%ROE　(%)17.8%12.7%4.2%( 0.6%)-11.0%≧10%*1　The EPS is108.60 yen after deduction of an amount equivalent to the gain on transfer of the polycrystalline alumina fiber business.Trends in Indicators for Stability20FY2017FY2018FY2019FY2020FY2021 3QFY2021(Forecast)FY2025(Performance Targets)Net D/E ratio0.891.261.791.731.571.430.5～1.0Net interest-bearing debt /EBITDA2.13.65.05.3-3.82.0～3.0Ratio of equity attributable toowners of the parent　(%)27.3%24.7%22.8%23.4%24.7%–Calculation formula of indicators21IndicatorsCalculation formulaEBITDACore Operating Income－Share of profit of associates and joint ventures(included in Core Operating Income)＋Depreciation/AmortizationNOPAT(*1)/Invested Capital (*2)(*1) NOPAT＝(Core Operating Income－Share of profit of associates and joint ventures(included in Core Operating Income)X(1－Tax rate) ＋Share of profit of associates and joint ventures(included in Core Operating Income)＋Dividend Income(*2) Invested Capital＝Total Equity＋Interest-bearing debtNet interest-bearing debt(*3)／Equity attributable to owners of the parent(*3) Net interest-bearing debt＝Interest-bearing debt－(cash and cash equivalents＋cash reserves(*4))(*4) Cash reserves comprise certificatets of deposits, securities, and other instruments other than cash equivalents that the Group holds to manage surplus funds.ROICNet D/E ratioReferences 222Mitsubishi Tanabe Pharma CorporationQ3 FY2021 Business Results（April –December 2021）February 3, 202223Business ResultsQ3 FY2021 Financial Results24Q3 FY2020Increase(decrease)ChangeBillion yenBillion yenBillion yen％Revenue299.8290.29.73.3Gross profit148.2143.05.23.7 SG&A expense, etc.141.1118.222.919.3R&D expense70.250.319.939.6Core operating profit7.124.7(17.6)(71.2) Non-recurring items*3.4(79.5)82.8-Operating profit*10.5(54.7)65.2-6.1(45.3)51.4-Average exchange rate US$¥111.45¥105.54*Brackets indicate expense and lossQ3FY2021Comparison to previous yearNet profit attributable toowners of the Company*Business ResultsDetails of Revenue25Q3 FY2020Increase(decrease)ChangeBillion yenBillion yenBillion yen％Domestic ethical drugs241.3235.06.42.7Priority products124.4103.720.720.0Vaccines28.536.0(7.5)(20.9)Long-listed drugs, etc.88.595.3(6.8)(7.2) Remicade31.335.5(4.2)(11.9)Overseas ethical drugs42.137.05.113.7Radicava18.915.93.018.7Royalty revenue, etc.10.512.4(1.9)(15.3)Q3FY2021Comparison to previous yearBusiness ResultsRevenue of Priority Products and Vaccines26Q3 FY2020Increase(decrease)ChangeBillion yenBillion yenBillion yen％Stelara38.923.015.969.3Simponi33.832.71.13.2Tenelia12.511.80.75.9Canaglu8.88.00.810.6Canalia7.87.50.34.1Vafseo0.70.30.4113.4Lexapro11.911.90.00.3Uplizna0.9-0.9-Rupafin5.95.20.713.7Imusera3.13.2(0.2)(5.4)Total of priority products124.4103.720.720.0Influenza vaccine10.713.8(3.1)(22.6)Tetrabik7.88.2(0.3)(4.2)Mearubik4.35.1(0.7)(14.5)Varicella vaccine3.63.8(0.2)(6.0)JEBIK V1.24.3(3.2)(73.2)Total of vaccines28.536.0(7.5)(20.9)Total of priority productsand vaccines152.9139.713.29.5Q3FY2021Comparison to previous yearBusiness ResultsRevenue TrendsJPY, bnThe impact of NHI drug price revision-9.0Domestic ethical drugs+6.427Stelara15.9Simponi1.1Uplizna0.9Canaglu0.8Tenelia0.7Remicade-4.2JEBIK V-3.2Influenza -3.1Mearubik-0.7Radicava3.0Invokana-2.6Status of research and development etc.28Development Pipeline：Central nervous system1. Central nervous systemCodeIndications/DescriptionRegionStageProgress (blue indicates progression)MT-1186 ALS/Oral suspensionGlobal*1Filed• Acceptance of NDA in the U.S. for priority review (January 2022).ND0612Parkinson’s diseaseGlobalP3• Global P3 study is ongoing.MT-3921 Spinal cord injuryGlobalP2• Global P2 study is ongoing.MT-0551 Myasthenia gravisJapan*2P3• Global P3 study is ongoing.*1 Development stage for other countries excluding US is Phase 3*2 Co-development with Horizon Therapeutics29Development Pipeline：Immuno-inflammation and Vaccines2. Immuno-inflammationCodeIndicationsRegionStageProgressMT-7117Erythropoietic protoporphyria (EPP)X-linked protoporphyria (XLP)MT-7117 Systemic sclerosisMT-5547 OsteoarthritisMT-0551 IgG4-related disease3. VaccinesGlobalP3• Global P3 study is ongoing.GlobalJapanJapan*1P2• Global P2 study is ongoing.P2/3 • P2/3 study completed.P3• Global P3 study is ongoing.CodeIndications/DescriptionRegionStageProgress(blue indicates progression)MT-2766Prophylaxis of COVID-19/Plant-derived VLP*2 vaccineGlobal*3P3MT-2355 Combined vaccine*4JapanP3• NDA submission completed in Canada (December), aim to commercialization in FY2021.• P1/2 study is ongoing in Japan.• P3 study completed.*1 Co-development with Horizon Therapeutics*2 VLP (Virus-Like Particle)*3 Development stage for other countries excluding Canada is P3.*4 Prophylaxis of pertussis, diphtheria, tetanus, poliomyelitis and prophylaxis of Hib infection in infants30MT-2766 Prophylaxis of COVID-19 Plant-derived Virus-Like Particle Vaccine◼ Status of development in each countryFY2021FY2022OctoberDecemberMarch 2022Global Phase 2/3 Clinical StudyPlan and conduct of additional studies(booster vaccination studies,pediatric studies)Canada◆ NDACommercializationJapanPhase 1/2 Clinical Study◆ NDA*1CommercializationU.S., WHO, etc.Preparation for NDA*1 Global clinical study data and Japanese clinical study data 31MT-1186Amyotrophic Lateral Sclerosis: ALS◼ Acceptance of MT-1186 filing in the U.S. in January• The U.S. Food and Drug Administration (FDA) has accepted the application for priority review.• This oral suspension contains the same ingredient as Radicava (injectable dosage form) and reduces the burden on ALS patients such as injection pain and outpatient visits, and significant improvement in convenience.Grow as a leader in ALS treatment◼ Expanding the lineup of ALS treatment drugs in the U.S. and create new hopeFDA acceptance of NDA for MT-1186 (RADICAVA Oral Suspension)Scheduled to launch MT-1186 in FY2022Launched EXSERVAN in FY2021 (RILUZOLE oral film)Launched RADICAVA for ALS treatments in FY2017 (injection）32Major Development Pipeline ListAs of Jan. 25, 2022Progress UpdateCodeRegionIndications/DescriptionP1P2P3FiledApprovedResearch areasCentral nervous systemImmuno-inflammationMT-1186ND0612MT-3921MT-5199MT-0551MT-7117MT-2990MT-5547MT-0551Global*1GlobalGlobalJapanJapan*2GlobalGlobalGlobalJapanJapan*2ALS/Oral suspensionParkinson’s diseaseSpinal cord injuryTardive dyskinesiaMyasthenia gravisSystemic sclerosisEndometriosisOsteoarthritisIgG4-related diseaseMT-8554JapanPeripheral neuropathic painErythropoietic protoporphyria(EPP)X-linked protoporphyria(XLP)MT-2766Global*3Prophylaxis of COVID-19/Plant-derived VLP*4vaccineVaccinesOthersMT-2654GlobalMT-2355TA-7284JapanJapanProphylaxis of seasonal influenza: elderly/Plant-derived VLP*4 vaccineCombined vaccine*5Diabetic nephropathy*1 NDA submission completed in the U.S. And P3 development stage in other countries*3 NDA submission completed in the Canada. And P3 development stage in other countries *4 VLP (Virus-Like Particle)*5 Prophylaxis of pertussis, diphtheria, tetanus, poliomyelitis and prophylaxis of Hib infection in infants*2 Co-development with Horizon Therapeutics33Launch Plan for Major Development PipelineFY2021FY2022FY2023FY2024ND0612Parkinson’s disease(Global)FY2025 and beyondMT-0551Myasthenia gravis(Japan)MT-0551NMOSD(Japan)MT-1186ALS (Oral suspension)(Global)MT-5199Tardive dyskinesia(Japan)MCI-186ALS(China)Central nervous systemImmuno-inflammationVaccinesOthersMT-2766COVID-19 preventive Vaccine(Canada*1)MP-513 OD TabletsType 2 diabetes mellitus(Japan)TA-7284Diabetic nephropathy(Japan)MP-513Type 2 diabetes mellitus(China)MT-7117EPP, XLP(Global)MT-5547Osteoarthritis(Japan)MT-2355Combined vaccine(Japan)MT-0551IgG4-related disease(Japan): Global（US launch year）: Japan/China: Launched*1 Expect global expansion after commercialization in Canada34Cautionary StatementThe statements contained in this presentation is based on a number of assumptions and belief in light of the information currently available to management of the company and is subject to significant risks and uncertainties.It contains information about pharmaceuticals including products under development, but is not intended for advertising or medical advice.3536The forward-looking statements are based largely on company expectationsand information available as of the date hereof, and are subject to risks anduncertainties, which may be beyond company control.Actual results could differ materially due to numerous factors, including withoutlimitation, marketing conditions and the effects of industry competition.37