SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS
Results for the First Half of Fiscal Year 2011
(April 1 – September 30, 2011)

November 2, 2011

MITSUBISHI GAS CHEMICAL COMPANY, INC.
Listed exchanges:

First section of the Tokyo Stock Exchange

Stock Code:

4182

URL:

http://www.mgc.co.jp

President:

Kazuo Sakai

Inquiries:

Motoyasu Kitagawa
General Manager, Corporate Communications Division
Tel: +81-3-3283-5041

Scheduled date of filing of the quarterly financial report:
Scheduled date of payment of dividend:

November 9, 2011

December 5, 2011

1. Summary of Consolidated Results for the First Half of Fiscal Year 2011
(April 1 – September 30, 2011)
1) Operating results
Millions of yen, rounded down
Percentage figures denote change compared to equivalent period of previous year

April 1 – September 30, 2011

April 1 – September 30, 2011

Change %Net sales .....................................................................
Operating income (loss) ..............................................
Ordinary income (loss) ................................................
Net income (loss) ........................................................
Net income (loss) per share (¥) ...................................
Fully diluted net income (loss) per share (¥) ...............

230,076
7,500
16,204
12,10926.79
26.28

Change %1.3(40.6)(6.2)
89.4

227,054
12,616
17,276
6,392
14.14
13.83

25.6
-

(Note) Comprehensive income: first half of FY 2011: ¥9,980 million (51.5%); first half of FY 2010:¥6,587 million (－%)

2) Financial position
Millions of yen, rounded down

As of September 30, 2011
576,128
296,818
49.7

Total assets .................................................................
Net assets ...................................................................
Equity ratio (%)............................................................

As of March 31, 2011
577,045
288,257
48.2(Note) Shareholders’ equity as of September 30, 2011: ¥286,535 million; as of March 31, 2011: ¥278,096 million

2. Cash Dividends
FY 20116.00
6.00 (Forecast)
12.00 (Forecast)Interim dividend per share (¥)......................................
Year-end dividend per share (¥)..................................
Annual dividend per share (¥) .....................................

FY 2010
4.00
4.00
8.00

(Note) Revision of cash dividend forecast during this period: None

3. Consolidated Forecasts for Fiscal Year 2011
(April 1, 2011 - March 31, 2012)

Millions of yen, rounded down
Percentage figures denote change compared to equivalent period of previous year

FY 2011
Change %Net sales ...........................................................................................................
Operating income (loss)....................................................................................
Ordinary income (loss)......................................................................................
Net Income (loss)..............................................................................................
Net income (loss) per share (¥).........................................................................
(Note) Revision of consolidated forecasts during this period: Yes

1

470,000
14,00031,00024,00053.10

4.2(40.1)(14.8)
26.6

4. Other Information
1) Transfer of important subsidiaries during the period under review: None
(Transfers of certain subsidiaries resulting in changes in the scope of consolidation)2) Adoption of simplified accounting methods: None
3) Changes in accounting policies, changes in accounting estimate or restatement of corrections:
1. Changes in accounting policies following revisions to accounting standards: None
2. Changes other than 1: None
3. Changes in accounting estimates: None
4. Restatement of corrections: None4)

Number of shares outstanding (ordinary shares)
September 30, 2011
Number of shares issued at end of period(including treasury shares) .............................................
Number of treasury shares at end of period .........................

483,478,398

483,478,398

31,664,169

31,471,354

April 1 – September 30, 2011
Average shares outstanding during period ..............................

March 31, 2011

451,956,812

April 1 – September 30, 2010
452,030,034(NOTE)
1. These quarterly financial results are not subject to quarterly review procedures. At this time of disclosure of these financial results, the quarterly
financial statement review procedures based on the Financial Instrument and Exchange Law have not been completed.
2. Forecasts, etc., recorded in this document contain forward-looking statements that are based on management’s estimates, assumptions andprojections at the time of publication. A number of factors could cause actual results to differ materially from expectations.

21. Consolidated business results for this period
Note: All comparisons are with the first quarter of the previous fiscal year, unless stated otherwise.

(1)Consolidated operating results
Overview of results
During the first six months of the fiscal year ending March 2012 (April 1-September 30, 2011), the Japanese
economy continued to face difficulties due to the aftereffects of the major earthquake that occurred in Marchand the continuing appreciation of the yen against other currencies. In spite of this adversity, the economy
showed signs of recovery thanks to the recovery of supply chains. After the middle of the year, however, rapidly
increasing uncertainty in foreign economies caused Japan’s economic environment to deteriorate even further.
Following damage sustained in the March 11 earthquake, the MGC Kashima Plant and the MGC electronicmaterials production subsidiary Electrotechno Co., Ltd. were restored to normal operation earlier than initiallyscheduled. Apart from the direct and indirect impact of the natural disaster and the strong yen, sales of someproducts for LCD displays fell, causing a decline in operating income.
On the other hand, high market prices for methanol led to an increase in equity in earnings for overseas
methanol producing companies and other affiliates.
Despite an extraordinary loss of ¥2.6 billion, including losses on valuation of investment securities,
extraordinary gain or loss improved by ¥6.8 billion from the corresponding period of the previous year.
In the six-month period under review, the MGC Group achieved consolidated net sales of ¥230.0 billion, an
increase of ¥3.0 billion (1.3%) from the prior-year period, a consolidated operating income of ¥7.5 billion, adecline of ¥5.1 billion (40.6%), equity in earnings of affiliates of ¥10.4 billion, an increase of ¥2.6 billion (34.2%),
a consolidated ordinary income of ¥16.2 billion, a drop of ¥1.0 billion (6.2%). Net income increased ¥5.7 billion(89.4%) to ¥12.1 billion.

Results by business segment
Natural Gas Chemicals Company
The methanol business enjoyed an increase in net sales thanks to high market prices due to steady world
demand—most notably in the Chinese market—and energy prices that remained at high levels.
Methanol and ammonia derivatives achieved the same level of earnings as in the prior-year period. Ammonia
and MMA-based products achieved higher revenue and earnings thanks to increasing market prices, while
neopentylglycol became less profitable.
The enzyme and coenzyme business posted lower revenue and earnings compared with the prior-year
period as sales of coenzyme Q10 remained sluggish.
Crude oil and other energy marked higher earnings thanks to increasing crude oil sales prices.
In the six-month period under review, the Natural Gas Chemicals Company achieved net sales of ¥74.1
billion, an increase of ¥3.7 billion (5.4%) and an operating income of ¥0.4 billion, an improvement of ¥0.9 billion.
Due to the improvement in the earnings of overseas methanol producing companies, equity in earnings ofaffiliates reached ¥8.3 billion, resulting in an ordinary income of ¥8.1 billion, an increase of ¥4.4 billion (118.4%).

3

Aromatic Chemicals Company
Specialty aromatic chemicals were as successful as in the prior-year period. Aromatic aldehydes achieved
gains in both revenue and earnings thanks to strong demand for uses in resin additives. Negative factors
included the lower profitability of meta-xylenediamine due to increasing raw material prices and the continuing
appreciation of the yen against other currencies.
The purified isophthalic acid business recorded improvements in both net sales and earnings. In addition to a
decline in the sales volume due to a slowdown in demand in China, it was affected by the strong yen andincreasing raw material prices. These negative factors were more than offset by higher sales prices.
In the first and second quarters of fiscal 2011, the Aromatic Chemicals Company achieved net sales of ¥67.5
billion, an increase of ¥12.6 billion (23.0%), an operating income of ¥0.7 billion, an improvement of ¥0.4 billion(147.0%), and an ordinary income of ¥0.1 billion, an improvement of ¥0.5 billion.

Specialty Chemicals Company
The inorganic chemicals business suffered losses in both revenue and earnings due to a reduction inhydrogen peroxide sales volume caused by suspended production at the Kashima Plant.
The electronic chemicals business achieved increases in both revenue and earnings. A reduction in thedomestic sales volume of super-pure hydrogen peroxide was more than offset by strong demand for hybrid
chemicals for semiconductors and LCD displays and the successful performance of overseas subsidiaries.
In engineering plastics, polycarbonates suffered losses in both revenue and earnings due to lower sales
volumes (caused by suspended production at the Kashima Plant and weaker domestic demand) and increases
in raw material prices. By contrast, polyacetal was largely successful in overseas markets, surpassing its
performance for the prior-year period.
Polycarbonate sheets and films posted lower revenue and earnings, because, despite the success ofhard-coated sheets for cellular phones and other products, net sales of films used in flat panel displays fell
sharply.
In the first six-month period of fiscal 2011, the Specialty Chemicals Company posted net sales of ¥59.7 billion,a decline of ¥9.9 billion (14.3%) and an operating income of ¥3.7 billion, a drop of ¥4.8 billion (56.3%). Due to¥0.9 billion equity in earnings of affiliates, ordinary income fell ¥4.4 billion (50.1%) to ¥4.4 billion.

Information & Advanced Materials Company
BT materials for semiconductor packaging suffered losses in both revenue and earnings. Immediately after
achieving early recovery of Electrotechno, these materials enjoyed high levels of incoming orders, mainly for
applications in mobile electronic devices. In July and after, however, sales volume declined due to inventory
adjustments by many customers and sluggish actual demand. Another negative factor was an increase in
manufacturing costs, which resulted in lower profitability.
Thanks to strong performance, mainly in the core market for domestic food, oxygen absorbers such as
AGELESS® surpassed revenue and earnings for the prior-year period.
In the six-month period under review, the Information & Advanced Materials Company posted net sales of¥28.2 billion, a decline of ¥3.4 billion (10.8%), an operating income of ¥3.4 billion, a drop of ¥1.5 billion (31.5%),
and an ordinary income of ¥3.3 billion, a drop of ¥1.5 billion (32.0%).

4OtherUp to the second quarter of fiscal 2011, other business operations achieved net sales of ¥0.3 billion, an
increase of ¥0.0 billion (3.3%) and an operating income of ¥0.2 billion, an increase of ¥0.0 billion (32.5%), andan ordinary income of ¥0.9 billion, an increase of ¥0.0 billion (1.8%).

(2) Consolidated financial position
Total consolidated assets as of September 30, 2011 were ¥576.1 billion, ¥0.9 billion lower than at the end of
the previous fiscal year. This was because cash fell, while tangible fixed assets and merchandise/finishedproducts increased. Liabilities declined ¥9.4 billion to ¥279.3 billion, primarily due to the complete repayment of
the current portion of corporate bonds, despite increases in short-term borrowings and trade notes andaccounts payable. Net assets grew to ¥296.8 billion, an increase of ¥8.5 billion, primarily due to an increase inretained earnings.

(3) Consolidated forecasts for the fiscal year ending March 31, 2012
Since the last announcement of financial performance forecasts, the world economy has rapidly deteriorated,causing reductions in both domestic and overseas demand. The continuing appreciation of the yen and rising
raw material prices have reduced chemical product margins, while polycarbonate and BT material sales
volumes have been declining. Despite the expected increase in equity in earnings of overseas methanol
producing companies, full-year financial results will be lower than the previously forecast figures.
These forecasts assume exchange rates of ¥80=$1 and ¥110=€1.

Full year ending March 31, 2012 (April 1, 2011 － March 31, 2012)(Millions of yen)
Net sales

Operating

Ordinary

incomeincomeNet income

Net income pershare (¥)

Previously announced forecasts (A)480,000

21,00037,00027,00059.73

Revised forecasts (B)470,000

14,00031,00024,00053.10

Change (B – A)

(10,000)(7,000)(6,000)(3,000)－(2.1)(33.3)(16.2)(11.1)－

451,033

23,36336,394

18,95041.92

Change (%)
Results for the same previous period(ended March 31, 2011)5

3. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets
Millions of yen, rounded down
As of March 31, 2011

As of September 30, 2011

Cash and deposits ..............................................

47,964

24,170Trade notes and accounts receivable..................

112,029

111,126

Short-term investments securities .......................

613

4,540

Merchandise and finished goods .........................
Work in progress .................................................

36,334
10,312

43,64810,704

Raw materials and supplies.................................

21,57022,641Other ...................................................................

16,476

15,873

Allowance for doubtful accounts..........................

(778)

(755)

Total current assets .............................................

244,522

231,949

Buildings and structures, net .............................

50,45350,393

Machinery, equipment and vehicles, net ...........

66,88462,748ASSETS
Current assets

Noncurrent assets
Property, plant and equipment

Other, net ..........................................................

59,48571,915

Total property, plant and equipment ..............

176,823

185,057

Goodwill ............................................................

56

80

Other .................................................................

4,175

4,243

Total intangible assets .................................

4,231

4,323

Investment securities ........................................

131,047

129,448

Other .................................................................
Allowance for doubtful accounts........................

20,883(462)

25,808(458)

Total investments and other assets................

151,468

154,798

Total noncurrent assets .........................................

332,523

344,179

Total assets ...........................................................

577,045576,128

Intangible assets

Investments and other assets

6

Consolidated Quarterly Balance Sheets (contd.)
Millions of yen, rounded down
As of March 31, 2011

As of September 30, 2011

Trade notes and accounts payable .......................

60,10868,012

Short-term loans payable ......................................

69,84581,035Current portion of bonds .......................................

20,000－

Income taxes payable ...........................................

1,869

1,341

Provision ...............................................................
Other.....................................................................

5,912
24,792

4,773
23,885

Total current liabilities ......................................

182,527

179,050

Long –term loans payable.....................................

75,85064,933

Provision for retirement benefits ...........................

5,402

6,157

Other provision......................................................
Asset retirement obligations..................................

1,302
3,472

1,377
3,480

Other.....................................................................

20,232

24,311

Total noncurrent liabilities ................................

106,260

100,260

Total liabilities ..................................................

288,787

279,310

Capital stock .........................................................

41,97041,970Capital surplus ......................................................

35,59135,592Retained earnings.................................................

236,597

247,577

Treasury stock ......................................................

(7,920)(8,037)306,238

317,102

4,197

1,851

LIABILITIESCurrent Liabilities

Noncurrent liabilities

NET ASSETS
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income

Valuation difference on available-for-salesecurities..........................................................
Deferred gains or less on hedges .........................

－

(184)

Revaluation reserve for land..................................

192

192

Foreign currency translation adjustment ...............

(32,531)(32,425)

Total accumulated other comprehensive income ..

(28,142)(30,566)

Minority interests...................................................

10,161

10,282

Total net assets................................................

288,257

296,818

Total liabilities and net assets ......................

577,045576,1287

(2) Consolidated Quarterly Statements of Income
Millions of yen, rounded down
April 1 - September 30, 2010 April 1 - September 30, 2011

Cost of sales ........................................................

227,054
186,290230,076
193,803

Gross profit ............................................................

40,76336,273

Selling, general and administrative expenses ......

28,146

28,772

Operating income ....................................................

12,616

7,500

Other ....................................................................

59
704
7,760
991

66
938
10,417942

Total non-operating income ..............................

9,516

12,365

Other ....................................................................

1,055
1,820
809
1,140

974
571
771
1,334

Total non-operating expenses ..........................

4,856

3,661

Ordinary income ......................................................

17,276

16,204Gain on change in equity .....................................

－
－

440
17

Total extraordinary income ...............................

－

457

6,448
－
296
551

1,587
557
488
19

1,777

－

Net sales..................................................................

Non-operating income

Interest income.....................................................
Dividend income...................................................
Equity in earnings of affiliates...............................

Non-operating expenses

Interest expense...................................................
Foreign exchange losses .....................................
Personnel expenses for seconded employees.....

Extraordinary income

Insurance income.................................................

Extraordinary losses

Loss on valuation of investment securities...........
Loss on disaster...................................................
Environmental improvement expensive ...............
Impairment loss....................................................
Loss on adjustment for changes of accounting
standard for asset retirement obligations .............
Total extraordinary losses.................................

9,073

2,653

Income before income taxes and minority
interests ...................................................................

8,202

14,008

Income taxes, etc.............................................................

1,174

1,262

Net income before minority interests ..........................

7,028

12,746

Minority interests in income .....................................

635

636

Net income ..............................................................

6,392

12,1098

(Consolidated Quarterly Statements of Comprehensive Income)Millions of yen, rounded down
April 1 - September 30, 2010 April 1 - September 30, 2011

7,028

12,746

Valuation difference on available-for-salesecurities..............................................................

3,252(2,325)

Deferred gains or losses on hedges ....................

－

(205)

(758)

67

(2,935)

(304)

(440)

(2,766)

6,587

9,980

Owners of the parent ...............................................

6,116

9,336

Minority interests .....................................................

471

643

Income before minority Interests .............................
Other comprehensive Income

Foreign currency statements translation
adjustment ...........................................................
Share of other comprehensive income ofassociates accounted for using equity method ....
Total other comprehensive Income ..................
Comprehensive Income

Total comprehensive Income Attributable to9(3) Consolidated Quarterly Statements of Cash Flows
Millions of yen, rounded down
April 1 - September 30,
April 1 - September 30,
2011
2010
Net cash provided by (used in) operating activities

8,202
13,830
211
49
－
－
551
(7,760)
19
304
(764)
1,055

14,00813,432
281
(51)
(505)
557
19
(10,417)(27)
754(1,005)
974

6,451

1,587

1,777

－

Environment improvement expenses ....................................

296

488

Decrease (Increase) in trade notes and accounts
receivable ..............................................................................

(3,045)74(2,379)
4,693
(469)

(8,850)8,347(1,283)(124)

57(3,294)
19,605764

810
19,252
1,007

3,802

7,750

(1,146)(1,393)－－
21,632(957)(2,034)505(1,571)
23,953(191)
484(12,197)666(2,081)
19
125(13,174)(121)
220(20,203)
315
(287)
274
(445)
(20,248)

Income before income taxes and minority interests ..............
Depreciation and amortization...............................................
Less (gain) on disposal of noncurrent assets ........................
Amortization of goodwill.........................................................
Insurance income ..................................................................
Loss on disaster ....................................................................
Impairment loss .....................................................................
Equity in (earnings) losses of affiliates ..................................
Increase (decrease) in allowance for doubtful accounts........
Increase (decrease) in provision for retirement benefits........
Interest and dividends income...............................................
Interest expenses ..................................................................
Loss (gain) on valuation of short-term and long-term
investment ...........................................................................
Loss on adjustment for changes of accounting standard for
asset retirement obligations...................................................

Decrease (Increase) in inventories ........................................
Increase (decrease) in trade notes and accounts payable ....
Increase (decrease) in accrued consumption taxes ..............
Increase (decrease) in provision for directors’ retirement
benefits..................................................................................
Other, net ..............................................................................
Subtotal............................................................................
Interest and dividends income received ................................
Proceeds from dividends income from affiliates accounted
for by equity method ..............................................................
Interest expenses paid ..........................................................
Income taxes (paid) refund....................................................
Proceeds from insurance income .........................................
Payments for loss on disaster ..............................................
Net cash provided by (used in) operating activities .........
Net cash provided by (used in) investing activities

Purchase of short-term investments securities ......................
Proceeds from sales of short-term investments securities ...
Purchase of noncurrent assets ..............................................
Proceeds from sales of noncurrent assets.............................
Purchase of investments in securities ...................................
Proceeds from sales of investments securities.....................
Other, net..............................................................................
Net cash provided by (used in) investing activities..........

10

Consolidated Quarterly Statements of Cash Flows(contd.)
Millions of yen, rounded down
April 1 - September 30,
2010

April 1 – September 30,
2011

Net cash provided by (used in) financing activities

Net increase (decrease) in short-term loans payable ............

(408)

821

Proceeds from long-term loans payable ................................

3,640

1,783

Repayment of long-term loans payable .................................

(2,715)847(2,444)－

Redemption of bond ..............................................................

－(20,000)

Purchase of treasury stock ....................................................

(4)

(118)

Cash dividends paid ..............................................................

(1,808)(1,818)Cash dividends paid to minority stockholders........................

(419)

(528)

Other, net ..............................................................................

(271)

(494)

Net cash provided by (used in) financing activities...........

(1,138)(22,789)

Effect of exchange rate change on cash and cash
equivalents ..............................................................................

564

(935)

Net increase (decrease) in cash and cash equivalents ...........

7,884(20,019)

Cash and cash equivalents at beginning of period ..................

36,04846,768

Increase (decrease) in cash and cash equivalents resulting
from change of scope of consolidation ....................................

469－

Cash and cash equivalents at end of period............................

44,402

26,748Proceeds from stock issuance to minority shareholders’

114. Consolidated Quarterly Segment Information(1) Six-month period ended September 30, 2010 (April 1 – September 30, 2010)
1. Revenue and earnings by segment
Millions of yen, rounded down
Natural gas
chemicals

Aromatic
chemicals

Specialty
chemicals

Information
andadvancedmaterials

Sales to outside customers .......

70,38354,961

69,67831,676354－

227,054

Inter-segment sales ...................

1,868

471

2,292

333

55

(5,021)－

Total .................................

72,25255,432

71,97032,009409(5,021)

227,054

Other(Note 1)

Adjustment(Note 2)

Consolidated(Note 3)

Segment income (loss)
3,727
(350)
8,865
4,990
961
(917)
17,276[Ordinary income (loss)] ..............
Notes：
1. The ‘Other’ segment includes operations not included in the other segments, such as listed related companies and real estate business.
2. The adjustment amounts are as follows:
The ¥917 million segment loss adjustment consists of ¥816 million income in inter-segment sales, and ¥1,733 million loss of overall
costs not allocated to segments.
Overall costs include SG&A expenses, financing expenses, and other expenses not allocated to segments.
3. Segment income (loss) is based on ordinary income as provided in the quarterly consolidated statement of income.

(2) Six-month period ended September 30, 2011(April 1 – September 30, 2011)
1. Revenue and earnings by segment
Millions of yen, rounded down
Natural gas
chemicals

Aromatic
chemicals

Specialty
chemicals

Information
andadvancedmaterials

Sales to outside customers .......

74,172

67,57859,71528,244366－

230,076

Inter-segment sales ...................

3,572

827

503

1

39

(4,943)－

Total .................................

77,744

68,40560,21828,245406(4,943)230,076

Other(Note 1)

Adjustment(Note 2)

Consolidated(Note 3)

Segment income (loss)
8,138
189
4,420
3,394
978
(916)
16,204[Ordinary income (loss)] ..............
Notes：
1. The ‘Other’ segment includes operations not included in the other segments, such as listed related companies and real estate business.
2. The adjustment amounts are as follows:
The ¥916 million segment loss adjustment consists of ¥204 million loss in inter-segment sales, and ¥712 million loss of overall costs notallocated to segments.
Overall costs include SG&A expenses, financing expenses, and other expenses not allocated to segments.
3. Segment income (loss) is based on ordinary income as provided in the quarterly consolidated statement of income.

12