Summary of Consolidated Financial Results for Third Quarter of FY2016
Feb. 3, 2017
Mitsubishi Gas Chemical, Inc (TSE 4182)
1.Summry of Income Statement (April 1- Dec 31, 2016)
Apr. 1 -Dec. 31,
2015
450,936

Net Sales

Millions of yen, rounded down
Apr. 1 -Dec. 31,
Change (%)
2016409,608(9.2)

Operating income

27,16432,35819.1

Ordinary income

36,23745,19924.7

Net income attributable to owners of the parent

28,42335,155

23.7

Comprehensive income

18,73041,422

121.2

Net income per share (Yen)

127.91

162.27*The Company conducted a consolidation of shares at a ratio of one share for every two shares effective October 1,2016. In Accordance with it, Net income per share are caluculated based on the assumption that the shareconsolidation had been carried out at the beginning of the previous fiscal year.
2. Financial Position
Millions of yen, rounded down
As of Dec. 31, 2016

As of Mar. 31, 2016
Total Assets

739,582

736,374

Net Assets

423,135

457,130

51.0

56.0

Equity Ratio(%)
3. Dividends
FY2015Interim dividend per share (Yen)FY20168.00

8.00

Year-end dividend per share (Yen)

8.00

20(Forecast)

Annual Dividend per share (Yen)

16.00-(Note) Revision of cash dividend forecast during this period: Yes*As the Company conducted a consolidation of shares at a ratio of one share for every two shares effective October
1, 2016, figures for the dividends per share for FY 2016 (forecast) are amounts that take into account theconsolidation 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 10 yen, and annual dividends per share are 18yen.
4. Consolidated Business Forecasts for FY2016 (April 1, 2016 - March 31, 2017)
Millions of yen, rounded down
Full YearNet Sales

540,000

Operating income

39,000Ordinary income

55,000Net income attibutable to owners of the parent

41,000Net income per share (Yen)

189.43(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.
5. Number of Shares Outstanding (Common Stock)
Mar31,2016

Dec31,2016

Number of shares outstanding at term end (including tresury stock)241,739,199

241,739,199

Number of shares of treasury stock at term-end

20,917,855

25,921,904

Apr. 1 -Dec. 31,
2015

Apr. 1 -Dec. 31,
2016

222,215,245

216,653,423

Average shares outstanding during period*The Company conducted a consolidation of shares at a ratio of one share for every two shares effective October 1,
2016. In Accordance with it, number of shares outstanding at term end, number of shares of treasury stock at theterm-end, and average shares outstanding during period are calculated based on the assumption that the shareconsolidation had been carried out at the beginning of the previous fiscal year.
1. These quarterly financial results are not subject to quarterly review procedures. At this time of disclosure of thesefinancial 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 todiffer materially from expectations.

Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen, rounded down)
As of Mar. 31, 2016 As of Dec. 31, 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, net
Machinery, 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

69,950148,190128
51,156
10,80029,783
18,139(1,115)
327,033

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

78,251
78,12057,868214,240

4,543
4,197
8,740

4,320
4,023
8,343

150,4319,088(441)
159,079398,344
739,582

177,102
10,033(378)
186,756
409,340
736,374

Consolidated Balance Sheets (continued)(Millions of yen, rounded down)
As of Mar. 31, 2016 As of Dec. 31, 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
Provision
Projected benefit obligations
Asset retirement obligations
OtherTotal 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

76,29878,519
2,330
3,184
133
38,979199,444

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

10,00035,320
2,012
8,679
3,844
19,942
79,799279,244

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

41,97035,603347,971(21,825)
403,719

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

16,904(34)
222(7,285)(1,492)
8,314
45,096457,130
736,374

2. Consolidated Statements of Income(Millions of yen, rounded down)
Apr. 1 -Dec. 31, Apr. 1 -Dec. 31,2015
2016
450,936
409,608
357,134
312,668
93,801
96,93966,63764,581
27,16432,358Net 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
Gain on sales of investment securities
Compensation received
Subsidy income
Gain on sales of noncurrent assets
Insurance income
Reversal of provision for business structure improvement
Total extraordinary income
Extraordinary losses
Loss on liquidation of subsidiaries and affiliates
Loss on sales of investment securities
Loss on reduction of noncurrent assets
Impairment loss
Business structure improvement expenses
Provision for compensation expenses
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

3393
2,128
12,498
1,778
16,799302
1,667
14,4551,785
18,211

1,706
2,996
996
2,026
7,725
36,237

1,052
1,078
1,262
1,977
5,370
45,199

3,444
301
155
136
122
4,160

761
201
135
1,097

1,310
411
270
147
2,139
38,2586,080
32,1783,754
28,423

141
127
107
72
448
45,8486,356
39,491
4,336
35,155

(Consolidated Statements of Comprehensive Income)(Millions of yen, rounded down)
Apr. 1 -Dec. 31, Apr. 1 -Dec. 31,
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

432,178

39,491(5,475)6(5,187)(406)(2,383)(13,447)
18,73017,093
1,637

7,078
(35)
(6,653)
183
1,357
1,931
41,422
40,523899

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

Net sales

FY 2015

FY 2016

1-3Q1-3Q

ChangeFY2015FY 2016

Full Year

Full Year

ResultForecast

450.9

409.6

(41.3)

593.5

540.0

Natural Gas Chemicals

135.8

107.8(27.9)

175.6

149.4

Aromatic Chemicals

158.6

145.3

(13.2)

205.8

190.2

Specialty Chemicals

125.8

128.4

2.5

170.2

163.8

Information and Advanced Materials

41.0

37.9

(3.1)

55.2

48.2

(10.3)(10.0)

0.3(13.5)(11.7)

27.1

32.3

5.1

34.0

39.0

Other and Adjustment
Operating income (loss)
Natural Gas Chemicals

3.1

0.8(2.2)

4.1

1.1

Aromatic Chemicals

13.4

14.8

1.3

15.2

17.4Specialty Chemicals

9.8

15.6

5.7

13.0

19.0

2.5

3.4

0.9

4.0

4.9

(1.9)

(2.5)

(0.6)

(2.4)

(3.5)

Non-operating profit

9.0

12.8

3.7

11.4

16.0

Ordinary income

Information and Advanced Materials

Other and Adjustment

36.2

45.1

8.9

45.4

55.0

Natural Gas Chemicals

11.5

9.1

(2.3)

13.9

12.8

Aromatic Chemicals

12.2

14.1

1.9

13.7

16.3

Specialty Chemicals

10.4

18.3

7.9

15.5

22.7

Information and Advanced Materials

2.4

4.2

1.8

3.8

5.7

(0.3)

(0.7)

(0.4)

(1.6)

(2.5)

Other and Adjustment(4)Other Information

Investments(Billions of yen)

1-3Q

24.3

18.9

14.7

22.6

FY2016
Forecast
24.1

Full year

30.9

25.4

22.2

30.5

35.0

Depriciation & amortization(Billions of yen)

1-3Q

16.7

17.5

17.8

19.8

18.8

Full year

23.0

23.5

23.7

26.7

26.0

1-3Q

11.5

12.1

12.3

13.7

14.2

FY2012FY2013

FY2014FY2015R&D expenditures(Billions of yen)

Full year

15.3

16.1

16.8

18.9

20.0

Number of Staff

Year-end

5,323

5,445

8,254

8,176

7,980

Numbe

ROA (Ordinary income)

4.6%

4.8%

5.8%

5.9%

7.5%

ROA (Ordin

ROE (Net income)(2.8%)

5.0%

12.6%

9.0%

10.4%

ROE (Ne8099107

122

107

Full year

83

100

110

120

107

1-3Q

377

383

410

283

250

4Q

365

498

349

213

330

Excahnge Rate
(JPY/USD, Average)
Methanol (USD/MT, Asian
average spot price)

1-3Q

5

Qualitative Information
Consolidated Business Results for This Period
Overview of Results(Billions of yen)
Apr.1-Dec.31,

Apr.1-Dec.31,

2015

2016

Net sales

450.9

409.6(41.3)

Operating income

27.1

32.3

5.1

Ordinary income

36.2

45.1

8.928.4

35.1

6.7

Net income attributable to owners ofthe parent

ChangeDuring the nine months of the fiscal year ending March 2017 (April 1-December 31, 2016), the world
economy suffered from continued uncertainty about the future. While the U.S. market showed a recovery
trend, the slowdown of China and other emerging economies caused concerns. The Japanese economy
continued to experience slow upswing owing to an ongoing improvement in employment.
The MGC Group suffered a drop in net sales compared with the corresponding period of the previous
fiscal year. Negative contributions included the stronger yen and lower methanol market prices.
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, which was due tolower prices of fuels and raw materials among other reasons.
Group ordinary income posted a year-on-year growth. There were positive factors including not only theincrease in operating income, but also higher equity in earnings of affiliates recognized by engineering
plastics affiliates and improvement of exchange gains and losses.
The Group posted a year-on-year growth in the net income attributable to parent company shareholders.
Despite a decline in gain on sales of investment securities, there was a positive impact of the growth inordinary income.

6Results by Business Segment
Natural Gas Chemicals(Billions of yen)
Apr.1-Dec.31,

Apr.1-Dec.31,

Change

2015

2016

Sales

135.8

107.8

(27.9)

Operating income

3.1

0.8(2.2)

Ordinary income

11.5

9.1

(2.3)

The methanol business recorded declines in both revenue and earnings. The business suffered fromlower market prices.
Methanol and ammonia-based chemicals suffered declines in revenue and earnings. Despite declines in
raw material prices, the figures were negatively affected by lower market prices of these products and thestronger yen.
Crude oil and other energy sources declined in both revenue and earnings due to lower crude oil prices.

Aromatic Chemicals(Billions of yen)
Apr.1-Dec.31,

Apr.1-Dec.31,

Change

2015

2016

Sales

158.6

145.3

(13.2)

Operating income

13.4

14.8

1.3

Ordinary income

12.2

14.1

1.9

Specialty aromatic chemicals posted a decline in both revenue and earnings due to the stronger yen.
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 ofhigh-purity Isophthalic Acid.
Despite being affected by the stronger yen, foamed plastics achieved an increase in earnings. Positive
reasons included lower prices of raw materials and the successful sales of high-value products.

7Specialty Chemicals(Billions of yen)
Apr.1-Dec.31,

Apr.1-Dec.31,

Change

2015

2016

Sales

125.8

128.4

2.5

Operating income

9.8

15.6

5.7

Ordinary income

10.4

18.3

7.9

Inorganic chemicals suffered reductions in both revenue and earnings. In addition to the stronger yen, alower sales volume of chemical solutions for semiconductors and LCD applications explains these results.
The engineering plastics business posted higher earnings. Major positive factors include higher sales
volume and improved profitability resulting from reductions in fuel and raw material prices forpolycarbonate, polyacetal and poly carbonate sheets and films.

Information & Advanced Materials(Billions of yen)
Apr.1-Dec.31,

Apr.1-Dec.31,

Change

2015

2016

Sales

41.0

37.9

(3.1)

Operating income

2.5

3.4

0.9

Ordinary income

2.4

4.2

1.8

Electronic materials posted a drop in revenue due to reasons including the dissolution of Japan Circuit
Industrial Co., the subsidiary producer of printed circuit boards, at the end of September 2016, whileachieving higher earnings primarily due to growth in the sales volume of BT materials for semiconductor
packaging.
Oxygen absorbers such as AGELESS® posted slightly lower earnings levels compared with the same
period of the previous year. The appreciation of the yen more than canceled the positive impact ofprior-year level developments in the sale of products for domestic food applications.

8Consolidated Business Forecasts
Revision of consolidated business forecasts
Full fiscal year 2016 (April 1, 2016 － March 31, 2017)(Billions of yen)

Net sales

OperatingincomeOrdinary
incomeNet income
attributableto owners ofthe parent

510.0

30.0

37.0

26.0

120.12

Revised forecasts (B)

540.0

39.0

55.0

41.0

189.43Change (B – A)

30.0

9.0

18.0

15.0-

Net income
per share (¥)

Previously announcedforecasts (A)Forecasts for MGC's full-year non-consolidated performance for the fiscal year ending March 2017 will likely
surpass their previous forecasts. In addition to the weaker yen, positive factors included higher sales volumes
and improved profitability of specialty and aromatic chemicals.
Among the forecasts of full-year consolidated performance for fiscal 2016, operating income will likely surpass
the previous forecast due to reasons similar to those cited for full-year non-consolidated performanceprojections. Ordinary income and net income attributable to parent company shareholders will be higher thantheir respective previous forecasts due not only to an expected increase in operating income, but also to higher
equity in earnings anticipated owing to increases in methanol market prices.
These performance forecasts assume exchange rates of ¥110=$1 and ¥120=€1 for the unelapsed period of
the fiscal year.

9(Revision of Forecast Dividends)
MGC corrects its previous forecast for the dividends to be provided towards the end of the fiscal year underreview. This is partly because MGC posted strong figures in the nine months of the fiscal year ending March2017. A further reason is that full-year results are now expected to surpass the corresponding previousforecasts.

(Yen)

Cash Dividends per Share
2Q

Year End

Previously announced

Annual※18.00※―※20.00

※―

8.00

16.00

forecasts
Revised forecasts
2Q Results

8.00

Fiscal 2015 Results

8.00※As the Company conducted a consolidation of shares at a ratio of one share for every two shares effective
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 “―.”(End)

10