Summary of Consolidated Financial Results for First Quarter of FY2016
Aug. 3, 2016
Mitsubishi Gas Chemical, Inc (TSE 4182)
1.Summry of Income Statement (April 1- June 30, 2016)
Apr. 1 -June. 30,
2015
148,991

Net Sales

Millions of yen, rounded down
Apr. 1 -June. 30,
Change (%)
2016
134,988(9.4)

Operating income

7,585

9,937

31.0

Ordinary income

11,461

12,204

6.5

Net income attributable to owners of the parent

11,4788,440(26.5)

Comprehensive income

11,916(2,813)－Net income per share (Yen)

25.51

19.33

2. Financial PositionMillions of yen, rounded down
As of June. 30, 2016

As of Mar. 31, 2016
Total Assets

739,582

687,942Net Assets

423,135

417,043

51.0

54.2

Equity Ratio(%)
3. Dividends
FY2015Interim dividend per share (Yen)FY2016(Forecast)
8.00

Year-end dividend per share (Yen)

8.00

Annual Dividend per share (Yen)

16.00

8.00
16.00
-(Note) Revision of cash dividend forecast during this period: None
*As the Company is scheduled to conduct a consolidation of shares at a ratio of one share for every two shareseffective October 1, 2016, figures for the dividends per share for FY 2016 (forecast) are amounts that take into
account the consolidation of shares, and total annual dividends are shown as “-.” Year-end dividends per share for
FY 2016 (forecast) without taking into account the consolidation of shares are 8 yen, and annual dividends per
share are 16 yen.
4. Consolidated Business Forecasts for FY2016 (April 1, 2016 - March 31, 2017)
Millions of yen, rounded down
Six-month period

Full YearNet Sales

260,000

520,000

Operating income

12,00025,000Ordinary income

15,00032,000Net income attibutable to owners of the parent

9,000

21,000Net income per share (Yen)

20.73

97.02(Note) Revision of consolidated business forecasts during this period: Yes*Concerning net income per share of the Consolidated Business Forecasts (Full year) for FY 2016, the effects ofthe consolidation of sharest are taken into account. Net income per share of the Consolidated Business Forecasts(Full year) for FY 2016 without taking into account the consolidation of shares is 48.51 yen.
5. Number of Shares Outstanding (Common Stock)
Mar31,2016

June30,2016

Nmber of shares outstanding at term end (including tresury stock)483,478,398

483,478,398

Number of shares of treasury stock at term-end

41,835,711

51,835,018

Apr. 1 -June. 30,
2015

Apr. 1 -June. 30,
2016449,990,053

436,642,335

Average shares outstanding during period

1. These quarterly financial results are not subject to quarterly review procedures. At this time of disclosure ofthese financial results, the quarterly financial statement review procedures based on the Financial Instrument andExchange Law have not been completed.
2. Forecasts, etc., recorded in this document contain forward-looking statements that are based on management’s
estimates, assumptions and projections at the time of publication. A number of factors could cause actual results
to differ materially from expectations.

Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen, rounded down)
As of Mar. 31, 2016 As of June. 30, 2016
ASSETS
Current assets
Cash and deposits
Trade notes and accounts receivable
Short-term investments securities
Merchandise and finished goods
Work in progress
Raw materials and supplies
OtherAllowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, netMachinery, equipment and vehicles, net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

1

84,097
136,401
121
57,98010,98531,14821,547(1,043)
341,237

69,506129,020150
53,566
10,581
29,783
19,436(990)
311,055

73,092
81,221
76,211
230,525

71,63775,50960,508207,655

4,543
4,197
8,740

4,456
3,870
8,327

150,4319,088(441)
159,079
398,344739,582

152,834
8,486(417)
160,904
376,887
687,942

Consolidated Balance Sheets (continued)(Millions of yen, rounded down)
As of Mar. 31, 2016 As of June. 30, 2016
LIABILITIESCurrent liabilities
Trade notes and accounts payable
Short-term loans payable
Current portion of bonds
Income taxes payable
Provision
Asset retirement obligations
OtherTotal current liabilities
Noncurrent liabilities
Bonds payable
Long –term loans payable
ProvisionProjected benefit obligations
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
Non controlling interest
Total net assets
Total liabilities and net assets

260,819
93,911
15,000
3,365
6,015
112
35,452
214,676

57,75280,301
15,000
1,534
3,413
112
30,110188,223

10,00046,947
2,586
9,078
3,800
29,358
101,771
316,447

10,00040,375
2,072
9,264
3,830
17,131
82,675
270,898

41,97035,603
311,250(15,566)
373,258

41,97035,604
324,710(21,819)
380,465

9,816
(3)
222
(4,613)(1,736)
3,686
46,190423,135
739,582

8,553
(0)
222
(15,133)(1,574)(7,932)44,510417,043
687,942

2. Consolidated Statements of Income(Millions of yen, rounded down)
Apr. 1 -June. 30, Apr. 1 -June. 30,
2015
2016
148,991
134,988
119,293
103,427
29,69831,56022,112
21,6237,585
9,937

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange losses
Personnel expenses for seconded employees
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Compensation received
Gain on sales of investment securities
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on sales of investment securities
Loss on liquidation of subsidiaries and affiliates
Loss on cancel of lease contracts
Total extraordinary losses
Income before income taxes, etc.
Income taxes, etc.
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent

3

127
1,285
3,132
911
5,457

103
992
3,962
564
5,622

651
438
491
1,580
11,461

385
1,733
486
751
3,356
12,204

3,444
119
3,564

201
201

147
147
14,877
2,402
12,475997
11,478127113
241
12,164
2,325
9,838
1,398
8,440

(Consolidated Statements of Comprehensive Income)(Millions of yen, rounded down)
Apr. 1 -June. 30, Apr. 1 -June. 30,2015
2016
Net income
Other comprehensive Income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency statements translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of associates accounted for using equity
Total other comprehensive Income
Comprehensive income
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

412,475

9,838

(552)
2(866)
(154)
1,012
(559)
11,916
11,543372(1,275)2(6,037)
78(5,419)(12,651)(2,813)(2,332)(480)

(3)Segment Information(Billions of yen, rounded down）
FY 2015

FY 2016

FY2015FY 2015

FY 2016

1Q

1Q

Full Year

1-2Q

Full Year

148.9

134.9

(14.0)

Result593.5

Forecast

Forecast

260.0

520.0

Natural Gas Chemicals

44.9

36.2

(8.7)

175.6

68.0

136.9

Aromatic Chemicals

52.8

47.2Specialty Chemicals

41.2

41.2

(5.5)

205.8

95.1

191.8

0.0

170.2

78.0

153.5

Information and Advanced Materials

13.0

13.2

0.2

55.2

24.5

49.1

Other and Adjustment

(3.1)

(3.0)

0.0

(13.5)(5.8)(11.5)

7.5

9.9

2.3

34.0

12.0

25.0

Natural Gas Chemicals

1.6

0.6

(1.0)

4.1

(0.4)

0.8

Aromatic Chemicals

3.5

4.1

0.5

15.2

7.1

14.3

Specialty Chemicals

2.0

4.5

2.5

13.0

5.4

9.5

Net sales

Operating income (loss)

Change

0.8

1.0

0.2

4.0

1.7

3.8

(0.5)

(0.4)

0.0

(2.4)

(1.9)

(3.5)

Non-operating profit

3.8

2.2

(1.6)

11.4

3.0

7.0

Ordinary income

Information and Advanced Materials

Other and Adjustment

11.4

12.2

0.7

45.4

15.0

32.0

Natural Gas Chemicals

3.9

2.4

(1.5)

13.9

1.6

5.6

Aromatic Chemicals

3.1

3.8

0.6

13.7

6.4

12.9

Specialty Chemicals

2.8

5.3

2.4

15.5

6.5

11.7

Information and Advanced Materials

0.9

1.2

0.3

3.8

2.2

4.5

Other and Adjustment

0.4

(0.7)

(1.1)

(1.6)

(1.8)

(2.8)

(4)Other Information

Investments(Billions of yen)

Full year

30.9

25.4

22.2

30.5

FY2016
Forecast
35.0

1Q

3.1

6.2

3.9

5.9

5.6

Depriciation & amortization(Billions of yen)

Full year

23.0

23.5

23.7

26.7

26.0

1Q

5.1

5.8

5.6

6.5

6.1

R&D expenditures(Billions of yen)

Full year

15.3

16.1

16.8

18.9

21.0

1Q

3.5

3.9

3.9

4.5

4.8

Number of Staff

Year-end

5,323

5,445

8,254

8,176

7,972

Numbe

ROA (Ordinary income)

4.6%

4.8%

5.8%

5.9%

4.3%

ROA (Ordin

ROE (Net income)(2.8%)

5.0%

12.6%9.0%

5.3%

ROE (Ne8099102121108

Full year

83100110120106

First half

385375

432

301

233

364449358230250

Excahnge Rate
(JPY/USD, Average)

1Q

Methanol (USD/MT, Asianaverage spot price)
Second half

FY2012FY2013

FY2014FY2015

5

Qualitative Information
Consolidated Business Results for This Period
Overview of Results(Billions of yen)
FY2015/1Q

FY2016/1Q

ChangeNet sales

148.9

134.9

(14.0)

Operating income

7.5

9.9

2.3

Ordinary income

11.4

12.2

0.7

11.4

8.4

(3.0)

Net income attributable to owners ofthe parentDuring the first quarter of the fiscal year ending March 2017 (April 1-June 30, 2016), the world economy
suffered from continued uncertainty marked by the impact of Brexit on the European economy andconcern over the slowdown of China and other emerging economies. Despite the further appreciation ofthe yen, the Japanese economy continued to experience slow recovery owing to an ongoing improvement
in employment.
The MGC Group suffered a drop in revenue compared with the previous fiscal year. Negative
contributions included the stronger yen, lower methanol market prices, as well as a lower sales volume forgeneral-purpose aromatic chemicals.
Group operating income was higher than the prior-year figure. The negative impact of the stronger yen
was more than offset by the improved profitability primarily of engineering plastics due to lower prices offuels and raw materials.
Group ordinary income posted year-on-year growth. Despite exchange losses, there were positive factors
including not only the increase in operating income, but also higher equity in earnings of affiliates
recognized by engineering plastics affiliates.
The Group posted a decline in net income attributable to parent company shareholders. The increase inordinary income was more than canceled by negative impacts such as a lower gain on sales ofinvestment securities.

6Results by Business Segment
Natural Gas Chemicals(Billions of yen)
FY2015/1Q

FY2016/1Q

ChangeSales

44.9

36.2(8.7)

Operating income

1.6

0.6(1.0)

Ordinary income

3.9

2.4(1.5)

The methanol business recorded declines in both revenue and earnings. Despite a higher sales volume,the business suffered from lower market prices.
Methanol and ammonia-based chemicals posted a lower revenue primarily due to declines in productmarket prices and the strong yen. Earnings were slightly higher than in the prior-year period, primarily due
to higher sales volumes for MMA-based products.
Crude oil and other energy sources declined in both revenue and earnings due to lower crude oil prices.

Aromatic Chemicals(Billions of yen)
FY2015/1Q

FY2016/1Q

ChangeSales

52.8

47.2

(5.5)

Operating income

3.5

4.1

0.5

Ordinary income

3.1

3.8

0.6

Specialty aromatic chemicals posted a decline in revenue due to the stronger yen, while reductions in fueland raw material prices led to prior-year-level earnings.
General-purpose aromatic chemical products suffered a decline in revenue with the discontinued sale ofpurified terephthalic acid. Further negative factors included lower product market prices and the stronger
yen. Earnings from these products grew, however, primarily due to the improvement in profitability madepossible by lower prices of fuels and raw materials.
Despite being affected by the stronger yen, foamed plastics achieved an increase in revenue. Positive
reasons included lower prices of raw materials and the successful sales of high-value products.

7

Specialty Chemicals(Billions of yen)
FY2015/1Q

FY2016/1Q

ChangeSales

41.2

41.2

0.0

Operating income

2.0

4.5

2.5

Ordinary income

2.8

5.3

2.4

Inorganic chemicals suffered reductions in both revenue and earnings. In addition to the stronger yen, alower sales volume of chemical solutions for semiconductors explains these results.
The engineering plastics business posted higher earnings. Major positive factors include improved
profitability resulting from reductions in fuel and raw material prices for both polycarbonate and polyacetalproduction. A further benefit came from sales volumes for polycarbonate sheets and films, which
maintained prior-year levels despite facing a challenging business environment.

Information & Advanced Materials(Billions of yen)
FY2015/1Q

FY2016/1Q

Change

Sales

13.0

13.2

0.2

Operating income

0.8

1.0

0.2

Ordinary income

0.9

1.2

0.3

Electronic chemicals achieved increases in both revenue and earnings, due to growth in the sales volumeof BT materials for semiconductor packaging, which represent this segment’s core product category.
Oxygen absorbers such as AGELESS® posted a slightly lower earnings level compared with the same
period of the previous year. The appreciation of the yen more than canceled the positive impact of stabledevelopments in the sale of products for domestic food applications.

8Consolidated Business Forecasts
Revision of consolidated business forecasts
Half year ending September 30, 2016 (April 1, 2016 － September 30, 2016)(Billions of yen)

Net sales

OperatingincomeOrdinary
incomeNet income
attributableto owners ofthe parent

260.0

9.0

14.0

8.0

18.11

Revised forecasts (B)

260.0

12.0

15.0

9.0

20.73

Change (B – A)

-

3.0

1.0

1.0-

Net income
per share (¥)

Previously announced
forecasts (A)Full fiscal year 2016 (April 1, 2016 － March 31, 2017)(Billions of yen)

Net sales

OperatingincomeOrdinary
incomeNet income
attributableto owners ofthe parent

530.0

23.0

32.0

21.0

95.10

Revised forecasts (B)

520.0

25.0

32.0

21.0

97.02

Change (B – A)

(10.0)

2.0---

Net income
per share (¥)

Previously announced
forecasts (A)For the first half of the current fiscal year, the MGC Group forecasts a higher figure for operating income
compared with its previous projection. This is because, despite the expected negative impact of the stronger
yen, it anticipates improvements in the profitability of specialty chemicals and electronic materials. By contrast,
exchange losses due to the strong yen will likely slow down growth in ordinary income and net income
attributable to parent company shareholders.
The same reasons will apply to MGC Group forecasts for the full year. The Group now expects a higher
operating income than the previous projection, while confirming its previous projections for ordinary incomeand net income attributable to parent company shareholders.
These performance forecasts assume exchange rates of ¥105=$1 and ¥115=€1 for the unelapsed period ofthe fiscal year.

*Concerning net income per share of the Consolidated Business Forecasts (Full year) for FY 2016, the effectsof the consolidation of sharest are taken into account. Net income per share of the Consolidated Business
Forecasts (Full year) for FY 2016 without taking into account the consolidation of shares is 48.51 yen.

(End)9