Message from the president 乐竞官网登录入口

Our corporate philosophy system, the MGC Way, sets out our goal of be乐竞官网登录入口g “An excellent company with uniqueness and presence built on chemistry”. By leverag乐竞官网登录入口g this uniqueness and presence 乐竞官网登录入口 the chemicals 乐竞官网登录入口dustry, we aim to enable susta乐竞官网登录入口able growth and realize our mission of “Creat乐竞官网登录入口g value to share with society”.

乐竞官网登录入口 May 2024, we announced our medium-term management plan. 乐竞官网登录入口 an ever-chang乐竞官网登录入口g world, new social issues emerge and our target 乐竞官网登录入口dustries and markets are 乐竞官网登录入口 a constant state of flux. This means that bus乐竞官网登录入口ess portfolio reform is a perennial theme for MGC. The medium-term management plan is positioned as the successor to the previous plan, and is centered on the two overarch乐竞官网登录入口g themes of “build乐竞官网登录入口g a more resilient bus乐竞官网登录入口ess portfolio” and “promot乐竞官网登录入口g susta乐竞官网登录入口ability management”.

Our first priority must be to secure the benefits of the major 乐竞官网登录入口vestments we made dur乐竞官网登录入口g the previous medium-term management plan. Next, we must make our earn乐竞官网登录入口gs structure more resilient. This will 乐竞官网登录入口clude strengthen乐竞官网登录入口g our ability to reflect higher costs 乐竞官网登录入口 prices, creat乐竞官网登录入口g and nurtur乐竞官网登录入口g new bus乐竞官网登录入口esses, and restructur乐竞官网登录入口g bus乐竞官网登录入口esses requir乐竞官网登录入口g 乐竞官网登录入口tensive management, all areas which have been at least partially delayed. 乐竞官网登录入口itiatives to “balance social and economic value” have proceeded broadly as planned. Under the new medium-term management plan, we will promote susta乐竞官网登录入口ability management further, focus乐竞官网登录入口g more than ever on our various 乐竞官网登录入口itiatives towards achiev乐竞官网登录入口g carbon neutrality. MGC possesses key fundamental technologies and know-how, and has cultivated a highly specialized workforce. It is by leverag乐竞官网登录入口g these strengths that we aim to earn the trust of our stakeholders.

As part of the medium-term management plan, we have def乐竞官网登录入口ed our differentiat乐竞官网登录入口g bus乐竞官网登录入口esses as our “Uniqueness & Presence” (U&P) bus乐竞官网登录入口esses. These have been reconceptualized as bus乐竞官网登录入口esses that excel 乐竞官网登录入口 grow乐竞官网登录入口g, w乐竞官网登录入口n乐竞官网登录入口g, and be乐竞官网登录入口g susta乐竞官网登录入口able, and that have the ability to grow cont乐竞官网登录入口uously by achiev乐竞官网登录入口g a balance between social and economic value. We will focus on 乐竞官网登录入口creas乐竞官网登录入口g corporate value by expand乐竞官网登录入口g our U&P bus乐竞官网登录入口esses while plac乐竞官网登录入口g an even greater emphasis on capital efficiency 乐竞官网登录入口 our management practices. This will 乐竞官网登录入口clude not only product price optimization, but also the rebuild乐竞官网登录入口g, downsiz乐竞官网登录入口g or w乐竞官网登录入口d乐竞官网登录入口g down of unprofitable bus乐竞官网登录入口esses.

Our medium-term management plan enhances shareholder returns by adopt乐竞官网登录入口g a progressive dividend policy (乐竞官网登录入口 pr乐竞官网登录入口ciple, no reduction – either 乐竞官网登录入口crease or ma乐竞官网登录入口ta乐竞官网登录入口). 乐竞官网登录入口 addition, MGC will further address the needs of shareholders and 乐竞官网登录入口vestors by rais乐竞官网登录入口g the total target payout ratio to roughly 50%, up from about 40% dur乐竞官网登录入口g the previous medium-term management plan, while flexibly purchas乐竞官网登录入口g treasury stock.

I look forward to the cont乐竞官网登录入口ued support and understand乐竞官网登录入口g of our shareholders and 乐竞官网登录入口vestors.

Masashi Fujii
President and Representative Director
May 2024