SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS
Results for the Third Quarter of Fiscal Year 2012
(April 1 – December 31, 2012)

February 5, 2013

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
February 12, 2013
Scheduled date of filing of the quarterly financial report:
Scheduled date of payment of dividend:-

1. Summary of Consolidated Results for the Third Quarter of Fiscal Year 2012
(April 1, 2012 – December 31, 2012)
1) Operating results
Millions of yen, rounded down
Percentage figures denote change compared to equivalent period of previous year

April 1 – December 31, 2012

April 1 – December 31, 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 (¥) ....................

349,286
9,450
21,717
16,15535.76-

Change %

1.7
2.8
(4.0)
76.4

343,406
9,192
22,616
9,159
20.27
20.01

0.6
(53.7)(18.0)(29.3)(Note) Comprehensive income: third quarter of FY 2012：¥17,291 million [ - %] ; third quarter of FY 2011：¥1,185 million [90.0%]

2) Financial position
Millions of yen, rounded down

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

As of December 31, 2012
608,419
303,308
48.1

As of March 31, 2012
595,250
292,11147.3(Note) Shareholders’ equity as of December 31, 2012: ¥292,850 million; as of March 31, 2012: ¥281,687 million

2. Cash Dividends
FY 20126.00
6.00 (Forecast)
12.00 (Forecast)Interim dividend per share (¥)..........................................
Year-end dividend per share (¥) ......................................
Annual dividend per share (¥)..........................................
(Note) Revision of cash dividend forecast during this period: None

FY 2011
6.00
6.00
12.00

3. Consolidated Business Forecasts for Fiscal Year 2012
(April 1, 2012 – March 31, 2013)
Millions of yen, rounded down
Percentage figures denote change compared to equivalent period of previous year

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

1

470,000
10,00024,000
5,000
11.07

3.9
10.1
(8.1)
(59.4)

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: Yes
2. Changes other than 1: Yes
3. Changes in accounting estimates: Yes
4. Restatement of corrections: None4)

Number of shares outstanding (ordinary shares)
December 31, 2012

March 31, 2012

Number of shares issued at end of period(including treasury shares) .............................................

483,478,398

483,478,398

Number of treasury shares at end of period ......................

31,762,701

31,666,371

April 1 – December 31, 2012
Average shares outstanding during period ..........................

451,732,813

April 1 – December 31, 2011
451,909,659(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 and projections
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 same period of the previous fiscal year, unless stated otherwise.

(1)Consolidated operating results
Overview of results
In the nine months up to the third quarter of the fiscal year ending March 2013 (April 1-December 31, 2012), theJapanese economy continued to face great strain due to the prolonged public finance crisis in Europe, the slowdownof the Chinese economy, and appreciation of the yen against other currencies.
The MGC Group achieved an increase in revenue compared with the same prior-year period. Despite declines in
the market prices of methanol and ammonia derivatives, positive contributions included increases in the sales
volumes of polycarbonates, as well as favorable developments in the sales price of methanol.
The operating income grew slightly. Narrower margins resulted from declines in the sales prices of chemicals ingeneral and the sales volumes of polycarbonate sheets/films declined. These negative factors, however, were morethan offset by higher sales volumes for electronic chemicals and a cost reduction due to a change in the depreciation
method.
By contrast, equity in earnings of affiliates was lower than the prior-year level, resulting in a decline in ordinary
income.
Net income was higher than for the prior-year period, during which a part of the deferred income taxes wasreversed in response to tax revisions implemented in fiscal 2011.
In the nine-month period under review, the MGC Group achieved ¥349.2 billion in consolidated net sales, anincrease of ¥5.8 billion (1.7%). Consolidated operating income was ¥9.4 billion, an increase of ¥0.2 billion (2.8%).
Equity in earnings of affiliates was ¥15.1 billion, a decline of ¥1.0 billion (6.3%). Consolidated ordinary income fellby ¥0.8 billion (4.0%) to ¥21.7 billion. Consolidated net income was ¥16.1 billion, an increase of ¥6.9 billion(76.4%).

Results by business segment
Natural Gas Chemicals Company
The methanol business achieved an increase in revenue thanks to favorable developments in sales prices.
Methanol and ammonia derivatives suffered a decline in revenue because of lower sales prices for MMA-based
products and neopentylglycol, primarily due to declines in demand resulting from the slowdown of the Chinese
economy. Earnings from these derivatives, however, grew over the prior-year level, thanks to positive contributions
including the change in the depreciation method.
The enzyme and coenzyme business recorded low levels of revenue and earnings due to a lower sales volume forcoenzyme Q10.
Crude oil and other energy increased in earnings thanks to the favorable development of crude oil sales.
In the nine months up to the third quarter of fiscal 2012, the Natural Gas Chemicals Company achieved
consolidated net sales of ¥112.5 billion, a decline of ¥2.5 billion (2.2%), and an operating income of ¥0.9 billion, an
increase of ¥0.5 billion (177.1%). An equity in earnings of affiliates of ¥11.9 billion, coming primarily from overseas
methanol producing companies, was posted, resulting in a consolidated ordinary income of ¥11.8 billion, a decline of¥0.0 billion (0.5%).

3

Aromatic Chemicals Company
Specialty aromatic chemical products posted lower revenue due to reductions in sales volumes formeta-xylenediamine, Nylon-MXD6, and aromatic aldehydes. However, earnings remained at the prior-year level due
to positive contributions such as the change in the depreciation method.
The purified isophthalic acid business posted prior-year-level earnings. It suffered a decline in sales volume, hence
a lower sales price, due to weaker demand following the slowdown of the polyester market. Nevertheless, factors
such as the change in the depreciation method helped the business achieve prior-year level earnings.
From April to December of fiscal 2012, the Aromatic Chemicals Company achieved consolidated net sales of ¥95.1
billion, a decline of ¥2.0 billion (2.1%), an operating income of ¥0.1 billion, an increase of ¥0.1 billion (691.4%), andan ordinary loss of ¥0.9 billion, which represented a reduction of ¥0.1 billion in ordinary results.

Specialty Chemicals Company
Inorganic chemicals achieved a prior-year level of earnings despite a reduction in the sales volume of hydrogen
peroxide.
Electronic chemicals achieved increases in both revenue and earnings. This positive trend was due to higher sales
volumes of super-pure hydrogen peroxide and hybrid chemicals for semiconductors.
Engineering plastics achieved growth in both revenue and earnings. While polyacetal suffered from the lower
earnings, polycarbonates achieved a higher sales volume compared with the prior-year number affected by the
March 11, 2011 disaster in East Japan.
Polycarbonate sheets and films suffered losses in both revenue and earnings. This is because of a lower sales
volume of films for use in flat panel displays.
In the nine-month period under review, the Specialty Chemicals Company achieved consolidated net sales of¥100.0 billion, an increase of ¥9.7 billion (10.8%) and an operating income of ¥6.7 billion, an increase of ¥0.8 billion(13.7%). Due to ¥1.4 billion equity in earnings of affiliates, the Company achieved an ordinary income of ¥6.5 billion,
an increase of ¥0.1 billion (2.3%).

Information & Advanced Materials Company
Electronic materials posted a drop in earnings. Among BT materials used for semiconductor packaging,smartphone-related applications enjoyed a higher sales volume, whereas general-purpose products suffered fromlow demand levels.
Thanks to strong sales, mainly in the domestic and overseas food markets, oxygen absorbers such as AGELESSⓇ
achieved prior-year levels in both revenue and earnings.
In the nine months between April and December of fiscal 2012, the Information & Advanced Materials Company
achieved consolidated net sales of ¥40.9 billion, an increase of ¥0.7 billion (1.9%), an operating income of ¥3.5 billion,a drop of ¥0.1 billion (4.1%), and an ordinary income of ¥3.6 billion, an increase of ¥0.0 billion (1.2%).

Other
In the nine months through the third quarter of fiscal 2012, the other business segment achieved consolidated net
sales of ¥0.6 billion, an increase of ¥0.0 billion (3.1%), an operating income of ¥3.5 billion, growth of ¥0.0 billion(8.7%), and an ordinary income of ¥1.2 billion, a decline of ¥0.0 billion (5.1%).

4

(2) Consolidated financial position
At the end of the third quarter of fiscal 2012, the MGC Group had ¥608.4 billion in total assets, an increase of ¥13.1
billion from the end of fiscal 2011.
Current assets declined by ¥2.2 billion to ¥215.7 billion, primarily due to a decline in short-term investments
securities.
Noncurrent assets increased by ¥15.4 billion to ¥356.6 billion. Property, plant and equipment rose by ¥6.7 billion to¥197.8 billion thanks to increases in buildings and structures and machinery, equipment and vehicles despite adecline in construction in progress. Investments and other assets were ¥155.0 billion, an increase of ¥8.2 billion, due
to an increase in investment securities resulting from the posting of equity in earnings as well as an increase indeferred income taxes.
Liabilities increased by ¥1.9 billion to ¥305.1 billion from the end of fiscal 2011.
Current liabilities declined by ¥18.3 billion to ¥175.1 billion, primarily due to and an increase in trade notes andaccounts payable and a reduction in short-term loans payable.
Noncurrent liabilities increased by ¥20.3 billion to ¥129.9 billion, primarily due to an increase in long-term loans
payable.
Net assets increased by ¥11.1 billion to ¥303.3 billion, primarily due to an increase of ¥10.7 billion in retained
earnings. As of December 31, 2012 the shareholders’ equity ratio was 48.1%.

(3) Consolidated business forecasts
For the full fiscal year, the MGC Group anticipates operating income at about the previously forecast level. Full-year
ordinary income is expected to fall short of the previous forecast, because equity in earnings of affiliates is likely todecline. Full-year net income is expected to be lower than our previous forecast. This is because the expected losses
in unsuccessful businesses, which were included in the previous business forecasts, have been increased further byadding the estimated costs for the turnaround of some unprofitable subsidiaries.
These business forecasts assume exchange rates of ¥85=$1 and ¥115= €1.

Revision of consolidated business forecasts
Fiscal year ending March 31, 2013 (April 1, 2012 － March 31, 2013)(Millions of yen)
OperatingincomeNet sales

Ordinary income

Net income

Net income pershare (¥)

Previously announced forecasts (A)470,000

10,00026,00012,00026.56

Revised forecasts (B)470,000

10,00024,000

5,000

11.07

Change (B – A)--

(2,000)(7,000)-Change (%)--(16.7)(58.3)-

452,217

9,083

26,116

12,327

27.28

Results for the previous period(ended March 31, 2012)5

2. About figures indicated in this summary (including notes)
Changes in accounting policies, changes in accounting estimates or restatement of corrections(Change in the depreciation method)
Starting in the first quarter of fiscal 2012, MGC has switched the method of depreciation of property, plant andequipment, not including buildings and structures (other than accompanying facilities) and leased assets, from thetraditional fixed-rate method to the straight-line method.
This change was made following an internal study of the use of property, plant and equipment, which forms thebasis of the MGC Mid-term Management Plan. This study shows that production outputs and operating ratios willremain stable in the long term. MGC has, therefore, decided that the straight-line method better reflects the use of
these assets within MGC.
Compared with the corresponding figures calculated by the traditional method, operating income for the nine month
up to the third Quarter of fiscal 2012 increased by ¥3,165 million, while the ordinary income, and income before
income taxes and minority interests each increased by ¥3,175 million.

63. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets
Millions of yen, rounded down
As of March 31, 2012

As of December 31, 2012ASSETS
Current assets

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

27,43826,264

Trade notes and accounts receivable .........................................

122,054

125,171

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

10,241140

Merchandise and finished goods ................................................

42,76150,782Work in progress.........................................................................

10,732

9,373

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

22,59324,908Other...........................................................................................

18,99516,018

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

(779)

(955)

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

254,037

251,792

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

49,79355,373

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

59,707

71,071Other, net .................................................................................

81,67771,450Total property, plant and equipment......................................

191,178

197,895

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

104
3,171

121
3,582

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

3,275

3,703

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

132,935

139,646

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

14,925

16,197

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

(1,101)(816)

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

146,758

155,027

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

341,212595,250

355,626
608,419

Noncurrent assets
Property, plant and equipment

Intangible assets

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

Investments and other assets

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

7

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

As of December 31, 2012

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

69,42775,750

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

90,511

66,676

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

1,599

703

Provision ......................................................................................

3,693

3,314

LIABILITIESCurrent Liabilities

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

28,232

28,676

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

193,464

175,122

Noncurrent liabilities

Bonds payable .............................................................................

15,00015,000Long –term loans payable............................................................

56,277

77,123

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

7,095

7,852

Other provision.............................................................................

1,451

1,507

Asset retirement obligations .........................................................

3,512

3,561

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

26,33624,944

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

109,673
303,138

129,989
305,111

Total liabilities ..........................................................................
NET ASSETS
Shareholders’ equity

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

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

35,59335,594Retained earnings........................................................................

245,083

255,817

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

(8,039)(8,090)Total shareholders’ equity .......................................................

314,607

325,292

Valuation difference on available-for-sale securities.....................

3,468

3,791
(224)

Accumulated other comprehensive income

Deferred gains or less on hedges.................................................

(177)

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

206

206

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

(36,417)(36,215)

Total accumulated other comprehensive income .........................

(32,920)(32,441)

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

10,424

10,457

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

292,111

303,308

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

595,250

608,4198

(2) Consolidated Quarterly Statements of Income
Millions of yen, rounded down
April 1 - December 31
2011April 1 - December 31
2012

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

343,406
291,426

349,286
297,265

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

51,97952,020

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

42,78742,570Operating income .........................................................................

9,192

9,450

98
1,230

124
1,110

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

16,154
1,256

15,1391,426

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

18,73917,801

Interest expense .......................................................................

1,425

1,898

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

1,156
605

1,144
-

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

2,128

2,490

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

Non-operating income

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

Non-operating expenses

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

5,316

5,533

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

22,616

21,717

Gain on sales of noncurrent assets...........................................

-

180

Insurance income......................................................................
Gain on sales of investment securities

440
117

163
-

Gain on change in equity ..........................................................

17-

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

574

344

1,544
-

1,437
838

488

828
420

102
-

159
120

31
573

50
-

Extraordinary income

Extraordinary losses

Loss on valuation of investment securities ................................
Provision for compensation expenses.......................................
Provision for loss on business liquidation..................................
Environmental improvement expensive ....................................
Loss on litigation .......................................................................
Loss on disposal of noncurrent assets ......................................
Impairment loss.........................................................................
Loss on disaster........................................................................
Total extraordinary losses......................................................

2,750

3,855

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

20,43918,206

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

10,288

1,486

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

10,15016,719Minority interests in income...........................................................

991

564

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

9,159

16,1559

(Consolidated Quarterly Statements of Comprehensive Income)April 1 - December 31
2011
Income before minority Interests ..................................................

Millions of yen, rounded down
April 1 – December 31
2012

10,15016,719340

Other comprehensive Income
Valuation difference on available-for-sale securities .................

(2,654)

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

(494)

(51)

Foreign currency statements translation adjustment.................
Share of other comprehensive income of associates
accounted for using equity method ...........................................

(1,576)289(4,239)(6)

Total other comprehensive Income .......................................

(8,965)571

Comprehensive Income ...................................................................

1,185

17,291627
558

16,633657

Total comprehensive Income Attributable to
Owners of the parent....................................................................
Minority interests ..........................................................................

10

4. Consolidated Quarterly Segment Information(1) Nine-month period ended December 31, 2011 (April 1 – December 31, 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 .....

115,064

97,24190,301

40,215

583－

343,406

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

5,507

1,298

729

0

62

(7,057)－

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

120,572

98,53991,03040,215645(7,597)343,406

Segment income (loss)[Ordinary income (loss)]............

11,918

(773)

6,406

3,609

1,334

120

22,616

Other(Note 1)

Adjustment(Note 2)

Consolidated(Note 3)

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 ¥120 million segment income adjustment consists of ¥144 million income in inter-segment sales, and ¥23 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) Nine-month period ended December 31, 2012 (April 1 – December 31, 2012)
1. Revenue and earnings by segment
Millions of yen, rounded down
Natural gas
chemicals

Aromatic
chemicals

Specialty
chemicals

Information
andadvancedmaterials

Sales to outside customers .....

112,515

95,151

100,047

40,969601－

349,286

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

5,704

1,505

711

1

39

(7,963)－

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

118,220

96,656

100,759

40,971641(7,963)

349,286

Segment income (loss)[Ordinary income (loss)] ...........

11,858

(956)

6,553

3,654

1,265

(657)

21,717

Other(Note 1)

Adjustment(Note 2)

Consolidated(Note 3)

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 ¥657 million segment loss adjustment consists of ¥23 million loss in inter-segment sales, and ¥634 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.

11