Summary of Consolidated Financial Results for Third Quarter of FY2019
Feb. 5, 2020
Mitsubishi Gas Chemical Company, Inc (TSE 4182)
1.Summary of Income Statement (April 1- Dec 31, 2019)
Apr. 1 -Dec. 31,
2018499,625

Net Sales

Millions of yen, rounded down
Apr. 1 -Dec. 31,
Change (%)
2019463,971(7.1)

Operating income

38,39826,409(31.2)

Ordinary income

62,672

22,584(64.0)Net income attributable to owners of the parent

50,16014,778(70.5)

Comprehensive income

49,271

17,223(65.0)Net income per share (Yen)234.8169.932. Financial Position
Millions of yen, rounded down
As of Dec. 31, 2019

As of Mar. 31, 2019
Total Assets

804,038

797,791

Net Assets

553,282

550,609

62.6

62.4

Equity Ratio(%)
3. Dividends
FY2018FY2019Interim dividend per share (Yen)

35.00

35.00

Year-end dividend per share (Yen)

35.00

35.00䚷(Forecast)

Annual Dividend per share (Yen)

70.00

70.00䚷(Forecast)(Note) Revision of cash dividend forecast during this period: None
4. Consolidated Business Forecasts for FY2019 (April 1, 2019 - March 31, 2020)
Millions of yen, rounded down
Full YearNet Sales

610,000

Operating income

31,000Ordinary income

27,000Net income attributable to owners of the parent

18,000Net income per share (Yen)

85.38(Note) Revision of consolidated business forecasts during this period: None
Please refer to ”Revision of Business Performance”for details.
5. Number of Shares Outstanding (Common Stock)
Mar31,2019

Dec31,2019

Number of shares outstanding at term end (including treasury stock)

231,739,199

229,039,199

Number of shares of treasury stock at term-end

18,099,472

20,262,608

Apr. 1 -Dec. 31,
2018

Apr. 1 -Dec. 31,2019

213,626,854

211,335,469

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.
$VRI0DUFK

$VVHWV&XUUHQWDVVHWV&DVKDQGGHSRVLWV
1RWHVDQGDFFRXQWVUHFHLYDEOHWUDGH
6HFXULWLHV0HUFKDQGLVHDQGILQLVKHGJRRGV:RUNLQSURFHVV
5DZPDWHULDOVDQGVXSSOLHV2WKHU
$OORZDQFHIRUGRXEWIXODFFRXQWV
7RWDOFXUUHQWDVVHWV1RQFXUUHQWDVVHWV3URSHUW\SODQWDQGHTXLSPHQW%XLOGLQJVDQGVWUXFWXUHVQHW
0DFKLQHU\HTXLSPHQWDQGYHKLFOHVQHW
2WKHUQHW
7RWDOSURSHUW\SODQWDQGHTXLSPHQW
,QWDQJLEOHDVVHWV*RRGZLOO2WKHU
7RWDOLQWDQJLEOHDVVHWV,QYHVWPHQWVDQGRWKHUDVVHWV,QYHVWPHQWVHFXULWLHV2WKHU
$OORZDQFHIRUGRXEWIXODFFRXQWV
7RWDOLQYHVWPHQWVDQGRWKHUDVVHWV
7RWDOQRQFXUUHQWDVVHWV
7RWDODVVHWV㸫  㸫

0LOOLRQVRI\HQ $VRI'HFHPEHU‫ڹ‬‫ڹ‬‫ڹ‬‫ڹ‬$VRI0DUFK/LDELOLWLHV&XUUHQWOLDELOLWLHV
1RWHVDQGDFFRXQWVSD\DEOHWUDGH
6KRUWWHUPERUURZLQJV,QFRPHWD[HVSD\DEOH
3URYLVLRQV$VVHWUHWLUHPHQWREOLJDWLRQV2WKHU
7RWDOFXUUHQWOLDELOLWLHV
1RQFXUUHQWOLDELOLWLHV%RQGVSD\DEOH
/RQJWHUPERUURZLQJV
3URYLVLRQV
5HWLUHPHQWEHQHILWOLDELOLW\$VVHWUHWLUHPHQWREOLJDWLRQV2WKHU
7RWDOQRQFXUUHQWOLDELOLWLHV
7RWDOOLDELOLWLHV
1HWDVVHWV
6KDUHKROGHUV HTXLW\
6KDUHFDSLWDO
&DSLWDOVXUSOXV5HWDLQHGHDUQLQJV
7UHDVXU\VKDUHV7RWDOVKDUHKROGHUV HTXLW\$FFXPXODWHGRWKHUFRPSUHKHQVLYHLQFRPH
9DOXDWLRQGLIIHUHQFHRQDYDLODEOHIRU
VDOHVHFXULWLHV'HIHUUHGJDLQVRUORVVHVRQKHGJHV
5HYDOXDWLRQUHVHUYHIRUODQG
)RUHLJQFXUUHQF\WUDQVODWLRQDGMXVWPHQW
5HPHDVXUHPHQWVRIGHILQHGEHQHILWSODQV7RWDODFFXPXODWHGRWKHUFRPSUHKHQVLYHLQFRPH
1RQFRQWUROOLQJLQWHUHVWV
7RWDOQHWDVVHWV
7RWDOOLDELOLWLHVDQGQHWDVVHWV㸫  㸫

0LOOLRQVRI\HQ $VRI'HFHPEHU

‫ڹ‬㸫‫ڹ‬‫ڹ‬‫ڹ‬‫ڹ‬


1LQHPRQWKVHQGHG
'HFHPEHU

1HWVDOHV&RVWRIVDOHV*URVVSURILW
6HOOLQJJHQHUDODQGDGPLQLVWUDWLYHH[SHQVHV2SHUDWLQJSURILW
1RQRSHUDWLQJLQFRPH,QWHUHVWLQFRPH
'LYLGHQGLQFRPH
5HQWDOLQFRPH
6KDUHRISURILWRIHQWLWLHVDFFRXQWHGIRUXVLQJHTXLW\PHWKRG
2WKHU
7RWDOQRQRSHUDWLQJLQFRPH
1RQRSHUDWLQJH[SHQVHV,QWHUHVWH[SHQVHV3HUVRQQHOH[SHQVHVIRUVHFRQGHGHPSOR\HHV
5HQWDOH[SHQVHV
6KDUHRIORVVRIHQWLWLHVDFFRXQWHGIRUXVLQJHTXLW\PHWKRG
2WKHU
7RWDOQRQRSHUDWLQJH[SHQVHV2UGLQDU\SURILW([WUDRUGLQDU\LQFRPH*DLQRQVDOHVRILQYHVWPHQWVHFXULWLHV*DLQRQVWHSDFTXLVLWLRQV,QVXUDQFHFODLPLQFRPH*DLQRQVDOHVRIQRQFXUUHQWDVVHWV
7RWDOH[WUDRUGLQDU\LQFRPH
([WUDRUGLQDU\ORVVHV3URYLVLRQIRUORVVRQJXDUDQWHHV/RVVRQGLVSRVDORIQRQFXUUHQWDVVHWV
3URYLVLRQIRUORVVRQFRPSHQVDWLRQ$FFLGHQWORVV3URYLVLRQIRUORVVRQEXVLQHVVRIVXEVLGLDULHVDQGDVVRFLDWHV/RVVRQYDOXDWLRQRILQYHVWPHQWVHFXULWLHV
7RWDOH[WUDRUGLQDU\ORVVHV
3URILWEHIRUHLQFRPHWD[HV,QFRPHWD[HV3URILW
3URILWDWWULEXWDEOHWRQRQFRQWUROOLQJLQWHUHVWV
3URILWDWWULEXWDEOHWRRZQHUVRISDUHQW㸫  㸫

0LOOLRQVRI\HQ 
1LQHPRQWKVHQGHG
'HFHPEHU

㸫㸫㸫㸫㸫㸫㸫㸫㸫

1LQHPRQWKVHQGHG
'HFHPEHU

3URILW
2WKHUFRPSUHKHQVLYHLQFRPH
9DOXDWLRQGLIIHUHQFHRQDYDLODEOHIRU
VDOHVHFXULWLHV'HIHUUHGJDLQVRUORVVHVRQKHGJHV)RUHLJQFXUUHQF\WUDQVODWLRQDGMXVWPHQW
5HPHDVXUHPHQWVRIGHILQHGEHQHILWSODQVQHWRIWD[6KDUHRIRWKHUFRPSUHKHQVLYHLQFRPHRIHQWLWLHVDFFRXQWHGIRUXVLQJHTXLW\PHWKRG
7RWDORWKHUFRPSUHKHQVLYHLQFRPH
&RPSUHKHQVLYHLQFRPH
&RPSUHKHQVLYHLQFRPHDWWULEXWDEOHWR
&RPSUHKHQVLYHLQFRPHDWWULEXWDEOHWR
RZQHUVRISDUHQW&RPSUHKHQVLYHLQFRPHDWWULEXWDEOHWRQRQFRQWUROOLQJLQWHUHVWV㸫  㸫

0LOOLRQVRI\HQ 
1LQHPRQWKVHQGHG
'HFHPEHU

‫ڹ‬‫ڹ‬‫ڹ‬‫ڹ‬‫ڹ‬‫ڹ‬‫ڹ‬‫ڹ‬
‫ڹ‬





3.Segment Information(Billions of yen, rounded down㸧
FY 2018

FY 2019

1-3Q

1-3Q

FY2018ChangeResultNet sales
Natural Gas Chemicals

FY 2019

Full Year Full Year
Forecast

499.6

463.9

(35.6)

648.9

610.0

144.3

126.7

(17.6)

188.3

170.9

Aromatic Chemicals

162.7

153.9

(8.7)

211.7

198.5

Specialty Chemicals

158.7

152.5

(6.1)

205.7

202.9

Information and Advanced Materials

40.8

40.8

0.0

51.9

53.4

Other and Adjustment(7.1)(10.1)

(3.0)

(8.7)

(15.9)
31.0

Operating income (loss)

38.3

26.4

(11.9)

41.3

Natural Gas Chemicals

3.1

(0)

(3.1)

3.3

(0.1)

Aromatic Chemicals

15.5

11.2

(4.3)

14.6

11.0

Specialty Chemicals

17.8

13.1

(4.6)

21.2

18.1Information and Advanced Materials

3.7

3.9

0.2

3.9

4.7

(1.8)

(1.9)

(0)

(1.8)

(2.7)

Other and Adjustment
Non-operating profit

24.2

(3.8)

(28.0)

27.8

(4.0)

Ordinary income

62.6

22.5

(40.0)

69.1

27.0

Natural Gas Chemicals

20.7(6.5)(27.3)

22.6

(6.5)

Aromatic Chemicals

15.0

10.6

(4.3)

13.9

10.1

Specialty Chemicals

23.0

15.0

(7.9)

28.2

20.3

Information and Advanced Materials

4.3

4.2

(0)

4.4

4.9(0.4)

(0.8)

(0.3)

(0.1)

(1.9)

Other and Adjustment
4.Other Information 1
FY2015FY2016FY2017FY201839.2

FY2019Forecast
48.0

Investments(Billions of yen)
Depreciation &amortization(Billions of yen)
R&D expenditures(Billions of yen)

Full year

30.5

35.0

30.9

1-3Q

22.6

24.1

23.2

28.7

32.1

Full year

26.7

25.6

27.0

27.4

29.0

1-3Q

19.8

18.8

20.0

20.3

21.9

Full year

18.9

19.2

18.9

18.6

20.0

1-3Q

13.7

14.2

14.2

13.8

14.0

Number of Staff

Year-end

8,176

8,034

8,009

8,276

9,016

ROA (Ordinary income)

5.9%

8.4%

10.6%

8.7%

3.4%ROE (Net income)

9.0%

12.0%

13.6%

11.3%

3.6%

5.Other Information 2FY2015

FY2016FY2017FY2018ResultResultResultFirst half Second half First half Second half First half Second half
Exchange Rate
(JPY/USD, Average)
Exchange Rate
(JPY/EUR, Average)
crude oil (Dubai)(USD/BBL)
Methanol (USD/MT,Asian average spot price)
Mixed Xylene(USD/MT)FY2019Result
1-3Q

Result
1-3Q

4Q

Forecast
4Q

122

118

105

112

111

111

111

110

109

105

135

130

118

119

126

133

129125

121

120

56

36

43

51

5062

71

64

64

65

301

230

230

327

296

381

394304

265

260

740

630

660

680

650

725

825

675

700

690

Bisphenol A(USD/MT)*

950

850

1,000

1,000

1,100

1,200

1,200

1,250

1,000

1,100

㹼1,500㹼1,100㹼1,200㹼1,400㹼1,300㹼1,700䡚1,900䡚1,500䡚1,450䡚1,450Polycarbonate(USD/MT)*

2,100

2,000

2,200

2,400

2,500

2,900

2,100

2,100

1,800

1,700

㹼2,650㹼2,400㹼2,500㹼2,800㹼2,900㹼3,900㹼3,800䡚2,300

䡚2,250

䡚2,100*Describe the minimum and maximum values during the period㻡Qualitative Information
Consolidated Business Results for This Period
Overview of Results(Billions of yen)

Apr.1-Dec.31,

Apr.1-Dec.31,

2018

2019

Net sales

499.6

463.9

(35.6)

Operating income

38.3

26.4

(11.9)

Ordinary income

62.6

22.5

(40.0)

50.1

14.7(35.3)Net income attributable to owners ofthe parent

ChangeDuring the first nine months of the fiscal year ending March 2020 (April 1 – December 31, 2019), theworld economy slowly recovered overall. However, there was also a looming sense of uncertainty due toheightening tension between the United States and China over trade issues and growing concerns aboutthe impact of China’s decelerating economic growth and the fallout from issues surrounding Brexit. The
Japanese economy saw gradual overall recovery, including continued improvement in employment,
despite ongoing stagnation in production and exports.
The management environment of the MGC Group remained challenging, as market prices of such key
products as methanol, polycarbonates, purified isophthalic acid and other general-purpose products
remained sluggish.
The MGC Group’s net sales decreased year on year, reflecting the decline in market prices for methanol,
polycarbonates and other products.
Group operating income also fell year on year, despite an increase in the sales volume of optical polymer
for use in such applications as smartphone camera lenses and that of specialty aromatic chemicalproducts, due to drops in market prices for such products as polycarbonates, purified isophthalic acid andmethanol.
Ordinary income also decreased, due to the fall in operating income as well as a significant deteriorationin equity in earnings (losses) of affiliated companies related to overseas methanol producing companies.
This reflected falling methanol market prices as well as one-off costs recorded at a joint venture,described below, in Saudi Arabia.
As previously announced, from the first quarter onward, MGC’s Consolidated Financial Statements
reflect the impact of the decreased ratio of equity held by Japan Saudi Arabia Methanol Co., Inc. (JSMC),
an equity method affiliate, in the Saudi Methanol Company (AR-RAZI) and amortization costs associatedwith cash to be paid as consideration for the continuation of the joint venture status of AR-RAZI. MGC
also recorded one-off costs totaling ¥7.8 billion, including loss related to the sale of shares of AR-RAZI aswell as additional tax-related expenses. The aforementioned factors are included in equity in losses ofaffiliates.
6Results by Business Segment
Natural Gas Chemicals(Billions of yen)
Apr.1-Dec.31,

Apr.1-Dec.31,

Change

2018

2019

Sales

138.0

118.4

(19.6)

Operating income

3.1(0)(3.1)

Ordinary income

20.7

(6.5)

(27.3)The methanol business saw decreases in both net sales and earnings due to a decrease in market
prices compared with the same period of the previous year.
Methanol and ammonia-based chemicals posted a decrease in earnings compared with the same periodof the previous fiscal year due to lower market prices of MMA and neopentyl glycol.
Crude oil and other energy sources achieved a year-on-year improvement in results, thanks in part tohigher crude oil sales volume.

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

Apr.1-Dec.31,

Change

2018

2019

Sales

162.3

153.2

(9.0)

Operating income

15.5

11.2

(4.3)

Ordinary income

15.0

10.6

(4.3)

Specialty aromatic chemical products posted increases in net sales and earnings from the same periodof the previous fiscal year, due in part to growing sales volume of meta-xylenediamine and aromatic
aldehydes.
General-purpose aromatic chemical products suffered decreases in net sales and earnings comparedwith the same period of the previous fiscal year. Negative factors included lower sales prices of purified
isophthalic acid and meta-xylene.
Foamed plastics suffered a year-on-year decline in earnings, primarily due to weak demand and a rise in
fixed costs associated with the construction of production systems to meet new demand.

7

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

Apr.1-Dec.31,

Change

2018

2019

Sales

157.8

150.9

(6.9)

Operating income

17.8

13.1(4.6)

Ordinary income

23.0

15.0

(7.9)

Inorganic chemicals posted lower earnings compared with the previous year, primarily due to higher
fixed costs in connection with the launch of a new production facility for super-pure hydrogen peroxide in
North America and deterioration in the profitability of hydrogen peroxide.
The engineering plastics business recorded decreased earnings year on year. This was due mainly to asignificant decrease in market prices for polycarbonates, despite growth in optical polymer sales volumes
reflecting the growing use of multiple camera lenses in smartphones and the execution of measures toenhance production capacity.

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

Apr.1-Dec.31,

Change

2018

2019

Sales

40.8

40.7

(0)

Operating income

3.7

3.9

0.2

Ordinary income

4.3

4.2

(0)

Electronic materials saw increases in net sales and earnings. This was mainly attributable to overall
recovery of demand in contrast with stagnation in the latter half of the previous fiscal year, an increase inthird-quarter demand for products used in smartphones and memory devices, and higher sales volumesof BT materials for semiconductor packaging, the core product category for electronic materials.
Oxygen absorbers such as AGELESS® posted a decrease in earnings compared with the same periodof the previous year. This was due mainly to a downturn in showings of those sold in Japan for use in
confectionary packages in the third quarter, reflecting the impact of natural disasters.

(End)

8