Attached Documentation disclosed on the Internet regarding theConvocation Notice of the 93rd Ordinary General Meeting of Shareholders(ⅰ) Stock Acquisition Rights(ⅱ) Consolidated Statement of Changes in Net Assets(ⅲ) Notes to Consolidated Financial Statements(ⅳ) Non-Consolidated Statement of Changes in Net Assets(ⅴ) Notes to Non-consolidated Financial Statements

Documents listed above, which should be attached to the convocation notice of the
93rd ordinary general meeting of shareholders, are disclosed on MGC’s website(https://www.mgc.co.jp/ir/stockinfo/meeting.html) in accordance with laws andregulations and the provisions of Article 15 of the Articles of Incorporation of MGC.

MITSUBISHI GAS CHEMICAL COMPANY, INC.

This document is an attachment to the Notice of the 93rd Ordinary General Meeting of Shareholders. This is an unofficialtranslation of the Japanese language original version, and is provided for reference purposes only, without any warranty as toits accuracy or as to the completeness of the information. In the event of any discrepancy between this translation and theJapanese original, The Japanese language original shall prevail. The Company assumes no responsibility for this translationor for direct, indirect or any other forms of damages arising from this translation.

(Translation)(Stock Acquisition Rights)(1)Matters on stock acquisition rights, etc. granted at the end of this fiscal year in remuneration forthe performance of corporate officers’ duties among which corporate officers holdNo applicable item.
(2)Matters on stock acquisition rights, etc. granted to employees and others during FY2019 inremuneration for the performance of their duties
No applicable item.
(3)Other important matters on stock acquisition rights, etc.
No applicable item.

1

(Translation)（Consolidated Statement of Changes in Net Assets）(From April 1, 2019 to March 31, 2020)(Millions of yen)

Shareholders’ equity

Balance at beginning of
periodShare capital

Capital surplus

41,97034,298Retainedearnings

439,080

Accumulated other comprehensive income

Treasury shares

Total
shareholders’equityValuationdifference on
available-for-salesecurities

Deferred gains orlosses on hedges△19,930

495,418

13,023

1

Revaluation
reserve for land

Foreign currencytranslation
adjustments

Remeasurementsof defined
benefit plans

Total ofaccumulated othercomprehensive
income222△6,327623

7,542

Noncontrollinginterests
50,321

Total net
assets553,282

Changes during period
Dividends of surplus△14,861△14,861△14,861

Profit attributable toowners of parent

21,15821,15821,158△8,733△8,733△8,733

11

40

51

51

Cancellation of treasury
shares△7,023

7,023

-

-

Transfer from retained
earnings to capitalsurplus

6,959

Purchase of treasury
shares
Disposal of treasury
sharesChange in scope of
consolidation△6,959-1,246

Change in ownershipinterest of parent
due to transactions
with non-controllinginterests△10

Reversal of revaluation
reserve for land

37

1,246

1,246

△10

△10

37

37

Net changes of items
other than shareholders’equityTotal changes
periodduringBalance at end of period△5,233

3

△272

△374

△3,500△9,327

5,298△4,029

-

△63

621

△1,669△1,111△5,233

3

△222

△374

△3,500△9,327

5,298△5,141

41,97034,234

439,701△21,600

494,306

7,789

4

-

△6,701△2,877△1,78555,619548,1412

(Translation)(Notes to Consolidated Financial Statements)
Notes Related to Important Basis for the Preparation of Consolidated Financial Statements
Matters Related to the Scope of Consolidation
1.

Number of consolidated subsidiaries and names of major consolidated subsidiaries, etc.
Number of consolidated subsidiaries: 72
Names of major consolidated subsidiaries:
Japan Finechem Company, Inc., JSP Corporation, JSP International Group Ltd., Fudow Company
Limited, Samyoung Pure Chemicals Co.,Ltd, MGC Pure Chemicals America,Inc., Taixing MGC
Suhua Specialty Materials Co., Ltd., MGC Filsheet Co.,Ltd., Thai Polyacetal Co.,Ltd., Mitsubishi
Gas Chemical Engineering-Plastics (Shanghai) Co., Ltd., MGC Electrotechno Co.,Ltd., MGC
Electrotechno (Thailand) Co.,Ltd., MGC Trading Inc., Tokyo Shokai, Ltd., Ryoko Chemical Co.,
Ltd., Ryoyo Trading Co., Ltd., Mitsubishi Gas Chemical Singapore Pte. Ltd., Mitsubishi Gas
Chemical America, Inc. and MGC Montney Holdings Ltd.
Toho Earthtech, Inc. and Japan U-Pica Co., Ltd. have been included in the scope of consolidation,
following the acquisition of additional shares.
Marine Transport and Terminal Co., Ltd. has been excluded from the scope of consolidation, as it
was dissolved due to an absorption-type merger with Kinoe Terminal Co., Ltd. as the surviving
company. In accordance with the merger, Kinoe Terminal Co., Ltd. has changed its trade name to
MGC Terminal Company, Inc.
Korea Special Products Co.,Ltd. has been excluded from the scope of consolidation, as it wasdissolved due to merger with KOSPA Corporation as a surviving company.

2.

Names, etc., of major non-consolidated subsidiaries
Names of major non-consolidated subsidiaries:
MGC Ageless Co., Ltd.
Reasons for exclusion from scope of consolidation:
Non-consolidated subsidiaries are excluded from the scope of consolidation due to the fact that the
net assets, sales, net income or loss, retained earnings corresponding to MGC’s interest in said
companies are small and do not have a significant impact overall on the consolidated financial
statements.

Matters Related to the Equity Method1.

Number and names, etc., of non-consolidated subsidiaries and affiliates not accounted for under theequity method
Number of equity method non-consolidated subsidiary: 1
Names of major non-consolidated subsidiary:
JSP Foam Products Hong Kong Ltd.
Number of equity method affiliates:
13
Names of major affiliates:
Japan Saudi Arabia Methanol Co., Inc., Metanol De Oriente, Metor,S.A., Brunei Methanol
Company Sdn. Bhd., Mitsubishi Engineering-Plastics Corporation, Korea Engineering Plastics Co.,
Ltd., Thai Polycarbonate Co., Ltd., Tai Hong Circuit Industrial Co., Ltd., Granopt Co., Ltd.

3

(Translation)

2.

Names, etc., of non-consolidated subsidiaries and affiliates not accounted for under equity method
Names of major companies, etc.:(Non-consolidated subsidiaries)
MGC Ageless Co., Ltd.
(Affiliates)
Polyxylenol Singapore Pte. Ltd.
Reasons for not applying the equity method:
The equity method was not applied to these non-consolidated subsidiaries and affiliates since thenet income and loss, retained earnings, and the like corresponding to MGC’s interest in said
companies are small and do not have a significant impact overall on the consolidated financial
statements.

Matters Related to Business Year, etc., of Consolidated Subsidiaries
The business years of the consolidated subsidiaries are the same as the consolidated fiscal year with the
exception of MGC Pure Chemicals Singapore Pte. Ltd., MGC Pure Chemicals Taiwan, Inc., and 31
other companies. In the case of the foregoing companies, December 31 marks the end of the business
year, and non-consolidated financial statements as of said date are used. However, adjustment requiredin terms of consolidated statements is made with respect to major transactions taking place fromJanuary 1 to the end of the consolidated fiscal year.

Matters Related to Accounting Policy
1.

Valuation Standard and Method for Securities
Held-to-Maturity securities:
Amortized cost method (straight-line method)
Available-for-sale securities
Securities with fair value:
Market value method based mainly on the average market price andthe like for the month prior to the closing of the fiscal year
(revaluation variances are all included directly in net assets and costsof sales are calculated by the moving average method)
Securities without fair value: Moving average cost method

2.

Valuation Standard and Method for Inventories
Mainly periodic average cost method (The amounts on the balance sheet have been calculated using thecost accounting method of reducing book value based on declining profitability.)

3.

Valuation Standard for Derivatives
Mainly market value method

4.

Depreciation of Fixed Assets
Property, plant and equipment (except for lease assets): Mainly straight-line method
Intangible fixed assets (except for lease assets):
Straight-line method
The expenses for internal use computer software are amortized by thestraight-line method over the estimated useful life (5 years).
Lease assets:
Finance lease transactions that do not transfer ownership to the lessee
Straight-line method for the duration of the lease period with aremaining balance of zero.

4

(Translation)5.

Accounting Standards for Reserves
Allowance for doubtful accounts:
Estimated uncollectible amounts are accounted for based on historical loan loss ratios in the caseof general receivables and based on case-by-case examination of collectability in the case of
specific receivables, including doubtful receivables, in preparation against loss from the inability tocollect on accounts receivable, loans, and the like.
Provision for bonuses:
Estimated bonus payments for the current consolidated fiscal year are accounted for in preparation
for payment of bonuses to employees.
Provision for business restructuring:A reasonably estimated future loss amount is accounted for in preparation for loss expected to be
incurred in line with the business structure reform of unprofitable businesses.
Provision for loss on liquidation of subsidiaries and associates
A reasonably estimated amount is accounted for in preparation for loss expected to be incurred inline with the liquidation of subsidiaries and associates.
Provision for retirement benefits for directors (and other officers):
MGC and some of its consolidated subsidiaries account for an amount to be paid to Corporate
Officers at the end of the fiscal year pursuant to internal rules in preparation for payment of
retirement and severance benefits to Directors and Executive Officers.
Provision for environment measures:
An estimated amount of disposal and transport costs of polychlorinated biphenyl wastes, based on
the handling cost publicized by Japan Environmental Storage & Safety Corporation, is accounted
for to cover the cost of properly disposing of said chemical waste as required by the Law for
Promotion of Correct Waste Disposal of Polychlorinated Biphenyls.
Provision for loss on business withdrawal
A reasonably estimated amount is accounted for in preparation for loss expected to be incurredfrom business withdrawal.
Provision for loss on business of subsidiaries and associates:
An estimated loss amount to be borne by MGC is accounted for in preparation for loss concerning
the business of subsidiaries and associates, in consideration of the financial condition, etc. of thosesubsidiaries and associates.
Loss compensation:
An estimated amount is accounted for in preparation for loss compensation likely to be incurred in
the future.

6.

Hedge Accounting Methods
Hedge accounting methods:
Deferred hedge accounting methods are applied. Also, allocation treatment is applied to exchange
fluctuation risk hedging in cases where requirements are met and “Exceptional accounting” isapplied to interest rate swaps in cases where requirements are met.
Hedging instruments and hedged items:
Forward exchange contracts hedge against accounts receivable and payable denominated in foreign
currencies and forecasted transactions denominated in foreign currency; interest rate swaps hedge
against interest rate transactions involved in borrowings.
Hedging policy:
MGC follows the policy of utilizing hedging instruments in the amount of the actual demand basedon the maximum limit of the derivative transactions and does not enter into derivative transactions
for speculative purposes.
Method of evaluation of effectiveness of hedging:5

(Translation)

Comparision is made between market fluctuations of the hedges and or cumulative cash flow
fluctuations, and market fluctuations of the hedging instruments and cumulative cash flow
fluctuations, and effectiveness is evaluated based on the proportion of the amount of fluctuation.
However, effectiveness evaluation is omitted for interest rate swaps applying exceptional
accounting.
7.

Depreciation Method and Period for Goodwill
Periods for which the effects of investments are generated are estimated for each investment target, andare depreciated within 20 years using the straight-line method.

8.

Other significant matters for preparing the consolidated financial statements
Recognition of retirement benefit liability
To prepare for the payment of retirement and severance benefits to employees, the amount of
accrued pension liabilities minus pension assets is recorded as retirement benefit liability, based on
the estimated amount at the end of the current fiscal year.
MGC has a retirement and severance trust.
In the calculation of estimated retirement and severance benefits, the method for attributing
estimated retirement and severance benefits to the period up to the end of the current fiscal year isbased on the benefit formula standard.
Unrecognized prior service cost is amortized by the straight-line method over a portion (10 years) of
the estimated average remaining service years of employees at the time the cost was incurred.
Unrecognized actuarial gain or loss is amortized mainly by the declining balance method over a
portion (10 years) of the estimated average of remaining service years of employees from thefollowing fiscal year.
Unrecognized actuarial gain or loss and unrecognized prior service cost are recorded asremeasurements of defined benefit plans in accumulated other comprehensive income under net
assets, after adjustment for tax effects.
Accounting Method for Consumption Tax, etc.
Tax segregation method is applied.

Notes on changes in presentation
Effective from the current consolidated fiscal year, MGC adopted IFRS 16 “Leases” for some overseas
consolidated subsidiaries, etc. This adoption has minor impact on the consolidated financial statements.

Notes on Consolidated Balance Sheet
1.

Collateralized Assets and Secured Debts
Collateralized assets are as follows:(millions of yen)Land
Buildings and structures
Machinery, equipment and vehicles
Investments in securities (Note)
Total

3,338
1,355
644
17,55622,896

Note: ¥14,395 million in shares of Brunei Methanol Company Sdn, Bhd., ¥1,693 million in shares of Yuzawa Geothermal Power
Corporation, ¥1,360 million in shares of Appi Geothermal Energy Corporation and ¥108 million in shares of Fukushima Gas
Power Co.,Ltd. are collateralized for their respective loans.

6

(Translation)

Secured debts are as follows:(millions of yen)

Current portion of long-term borrowings
Long-term debt
Total

183
720
903

2.

Cumulative depreciation of property, plant and equipment:¥583,313 million
Cumulative depreciation includes cumulative impairment loss on fixed assets.

3.

Guarantees:¥31,446 million

Notes on Consolidated Statement on Changes in Net Assets
1.

Matters Related to Issued and Outstanding Shares
Common Stock: 225,739,199 Shares

2.

Matters Related to Dividends(1) Dividends Paid
Resolution
Board of Directors’ Meeting;May 24, 2019
Board of Directors’ Meeting;
November 5, 2019

Class of
Stock

Total Amount of
Dividends

Dividendper Share

Common¥7,477 million¥35.00Common¥7,384 million¥35.00Record Date
March 31,2019
September 30,
2019

Effective
Date
June 6,2019
December 5,
2019(2) Dividends for Which Record Date Falls in the Current Consolidated Fiscal Year but Effective
Date Falls in the Following Consolidated Fiscal Year
Resolution

Class of
Stock

Total Amount of
Dividends

Resource

Dividendper Share

Board of Directors’Meeting; May 26, 2020

Common¥7,279million

Retained
Earnings¥35.00RecordDate
March 31,2020

Effective
Date
June 8,2020

Notes on Financial Instruments
1.

Matters Relating to the Conditions of Financial Instruments(1) Policy on Financial Instruments
The MGC Group primarily takes the plans for future cash flow into account when procuring
necessary funds (mainly through bank loans and bond issues). Temporary surplus of funds ismanaged through secure financial assets and short-term working capital is financed through bankloans. The MGC Group uses derivatives for the purpose of mitigating the risks described below anddoes not engage in transactions for speculative purposes.
(2) Contents and Risk of Financial Instruments
Trade notes and accounts receivable are trade receivables, which are subject to the credit risks ofthe customers. Trade notes and accounts payable are trade liabilities due within one year. Althougha portion of the Group’s trade receivables and trade liabilities, being denominated in foreign
currencies, are subject to risks associated with changes in the foreign currency exchange rates, thenet position is basically hedged through the use of forward exchange contracts.
Short-term investments and investments in securities mainly comprise held-to-maturity bonds andstocks of companies with which the Group has business relations, and are subject to risks
associated with fluctuations of their market prices.

7

(Translation)

Borrowings, bonds and lease liabilities associated with finance leases are used primarily for
procuring the necessary funds for capital expenditures and working capital. Although a portion ofthese funds, having floating interest rates, is subject to risks associated with fluctuating interest
rates, such risks are hedged through the use of derivative transactions (interest rate swap
agreements).
Derivative transactions include forward exchange contracts used for the purpose of hedging against
risks of exchange rate fluctuations of foreign-currency denominated receivables and liabilities, andinterest rate and currency swap contracts used for the purpose of hedging against risks associatedwith the payment of interest and changes in the currency exchange rates of loans.
For methods of hedge accounting, hedging targets and hedging policies, please refer to “Methods ofHedge Accounting” under “Matters Related to Accounting Policy,” stated above.
(3) System of Risk Management for Financial Instruments
1) Management of Credit Risks (risks associated with breach of contract by the customer)
MGC and its consolidated subsidiaries, in accordance with the Rules on the Management ofTrade Receivables, manage their operating receivables by having the Sales Administration
Department at each Division regularly monitor the status of their major customers and keep trackof the payment dates and outstanding balances of each customer, while also enabling earlyrecognition and mitigation of cases where there is concern for collection due to deteriorating
financial conditions and other factors. Held-to-maturity bonds, pursuant to the Rules on
Investment of Surplus Funds, are managed as bonds that may be converted into cash at any time.
The maximum risk amount as of the end of current fiscal year has been represented as theConsolidated Balance Sheet Amount of financial assets subject to credit risk.
2) Management of Market Risks (risks associated with changes in exchange and interest rates)
MGC and its consolidated subsidiaries, in accordance with the Financial Rules and the Rules for
the Management of Derivatives, engage in transactions entailing market risks only after thedivision in charge of finances has obtained the approval of the officer in charge or otherauthorized decision-making parties.
Risks associated with trade receivables/trade obligations denominated in foreign currencies andsurplus funds that have been monitored on a monthly basis and according to each currency arebasically hedged through the use of forward exchange contracts. Additionally, interest rate andcurrency swap contracts are used to hedge against the risks associated with the payment ofinterest and changes in the currency exchange rates of loans.
In terms of securities and investment securities, their fair values and the financial status of theissuers (customers) are monitored on a regular basis; while the holding status of securities
classified in categories other than held-to-maturity bonds are continuously reviewed.
3) Management of Liquidity Risk (risk of not being able to execute payment on payment date)
MGC and its consolidated subsidiaries manage liquidity risks by having the divisions in chargeof finances prepare and update cash flow plans, as necessary, and maintain a certain level ofliquidity at hand.
(4) Supplementary Explanation of Matters Relating to the Fair Value of Financial Instruments and Others
Fair values of financial instruments include the values based on market prices, and the values
obtained by reasonable estimates when the financial instruments do not have market prices. Since
certain variable factors are incorporated into such calculations, they may differ when adopting
different assumptions.

8(Translation)

2.

Matters Relating to the Fair value of Financial Instruments and Others
The following are the consolidated balance sheet amounts, fair values and differences between them asof March 31, 2020.
Financial instruments whose fair values are extremely difficult to determine have been excluded fromthe table (see (Note 2)).

(1) Cash and deposits(2) Notes and accounts receivable-trade(3) Securities and investment securities
Total assets(1) Notes and accounts payable-trade(2) Short-term borrowings(3) Accrued expenses(4) Current portion of bonds payable(5) Long-term borrowings
Total liabilities
Derivative transactions
1) Derivative transactions not qualifying
for hedge accounting2) Derivative transactions qualifying forhedge accounting
Total derivative transactions

Consolidated
Balance Sheet
Amount78,227141,279
35,972
255,480
70,77633,98018,00810,00029,043
161,809

Fair Value

Difference

78,227141,279
35,972
255,480
70,77633,98018,00810,041
29,847
162,654

－
－
－
－
－
－
－
41
803
845

(364)

(364)

－

6

4

(1)

(358)

(359)

(1)

(*) Net receivables and liabilities generated through derivative transactions are presented as net amounts and in cases
where the total amount represents a net liability, such amounts have been put in parentheses.
Notes: 1. Calculation Method of Fair Value of Financial Instruments
Assets(1) Cash and deposits and (2) Notes and accounts receivable - trade
As these assets are settled in a short period of time, their fair values are deemed nearly equivalent to theirbook values. Consequently, their fair values are calculated from their book values.
(3) Securities and investments in securities
The fair values of stocks are calculated on the basis of stock prices quoted on the stock exchanges, while
the fair values of bonds are calculated on the basis of prices quoted on the stock exchanges or prices
indicated by the financial institutions that are the counterparties to the transactions.
Liabilities(1) Notes and accounts payable - trade, (2) Short-term borrowings, (3) Accrued expenses
As these liabilities are settled in a short period of time, their fair values are deemed nearly equivalent totheir book values. Consequently, their fair values are calculated from their book values.
(4) Current portion of bonds payable
The fair values of bonds issued by MGC are calculated on the basis of their market prices.
(5) Long-term borrowings
The fair values of Long-term loans is measured based on the present value of future cash flows ofprincipal and interest, discounted at an interest rate that would be charged for a newly financed similarloan transaction.
Derivative transactions
The fair values of derivative transactions are calculated on the basis of prices indicated by the financial
institutions that are the counterparties to the transactions.

9(Translation)

2. Financial Instruments whose Fair Values are Deemed to be Extremely Difficult to Determine
Consolidated Balance
Sheet AmountUnlisted stocks (*1)¥116,699 million(*1) As unlisted stocks have no market value, and in light of the extreme difficulty of determining their fairvalue, they have been excluded from “Assets (3) Securities and investment securities.”

Notes on Rental Property
Matters Concerning the Status and Fair Value of Rental Property
1.

Outline of Rental Property
MGC and a portion of its subsidiaries own land and buildings for rent in Tokyo and in other areas.

2.

The Consolidated Balance Sheet Amount of Rental Property, Major Changes Thereof during the Fiscal
Year, the Fair Value Thereof as of the Fiscal Year-end and the Method for Calculation of Fair Value
Consolidated Balance Sheet Amount
Balance as of April 1,
Changes during fiscal
Balance as of March 31,
2019
year
2020
¥15,150 million¥10,793million¥△4,357 million

Fair value as of March
31, 2020¥14,117 million

Notes: 1. The consolidated balance sheet amount is the amount of acquisition cost less cumulative depreciation andcumulative impairment loss.
2. Major changes
Loss on tax purpose reduction entry of non-current assets by QOL Innovation Center Shirakawa: ¥△4,381 million
3. Method for calculation of fair value
The amount is based primarily on indices including roadside land prices.

3.

Profit or Loss Relating to Rental Property
Profit or loss from rent on rental property:¥438 million

Notes on Per Share Information
Net Assets per ShareNet Income per Share¥2,368.11¥100.50

Note on significant subsequent events(Not applicable at present)

Other Notes
Amounts less than ¥1 million are rounded off.

- End of Notes to Consolidated Financial Statements -10

(Translation)（Non-Consolidated Statement of Changes in Net Assets）(April 1, 2019 to March 31, 2020)(Millions of yen)

Valuation andtranslation
adjustments

Shareholders’ equity
Capital surplus

Retained earnings

Balance at beginning of
period41,970Capital surplus

Other capitalsurplus

Total capitalsurplus

Legal retained
earnings

Reserve formine
prospecting

35,66853

35,721

6,999

1,917

Reserve for tax
purpose reduction
entry of non-current
assets2,690

Generalreserve

76,50012,474

Total net
assetsRetainedearnings
brought forward

Total retained
earnings

Treasury shares

132,855

220,962△19,930

278,724△14,861△14,861△14,861△14,861

29,332

29,332

29,332

29,332Other retained earnings
Share capital

Valuationdifference on
available-forsale securities

Total
Shareholders’equity291,198

Changes during period
Dividends of surplus

Net income
Provision of reserve for tax
purpose reduction entry of
non-current assets

363

△363

-

-

-

Reversal of reserve for tax
purpose reduction entry of
non-current assets

△115

115

-

-

-

Provision of reserve
for mine prospecting

414

△414

-

-

-

Reversal of reserve formine prospecting

△597

597

-

-

-

△8,733△8,733△8,733

51

51

-

-

Purchase of treasury
shares
Disposal of treasury
sharesCancellation oftreasury shares
Net transfer fromretained earnings tocapital surplus

11

11

40

△7,023△7,023

7,023

6,599

6,599

△6,599△6,599Net changes of items
other than shareholders'equity△6,032△6,032

Total changes during theperiod

-

-

△53

△53

-

△182

247

-

7,447

7,512

△1,6695,789△6,032△242

Balance at end of period

41,97035,668-35,668

6,999

1,734

2,937

76,500140,303

228,474△21,600

284,513

6,442

290,95511

(Translation)(Notes to Non-consolidated Financial Statements)
Notes Related to Important Accounting Principles
1.

Valuation Standard and Method for Securities
Interest in Subsidiaries and Affiliates:
Moving average cost method
Other Securities
Securities with fair value:
Market value method based mainly on the average market
price and the like for the month prior to the closing of the
fiscal year (revaluation variances are all included directly in
net assets, and costs of sales are calculated by the moving
average method)
Securities without fair value: Moving average cost method

2.

Valuation Standard and Method for Inventories:
Total average cost method (The amounts on the balance sheet have been calculated using the costaccounting method of reducing book value based on declining profitability.)

3.

Valuation Standard for Derivatives: Market value method

4.

Depreciation of Fixed Assets
Tangible Fixed Assets (except for lease assets):
Straight-line method
Intangible Fixed Assets (except for lease assets):
Straight-line method
The expenses for internal use computer software are amortized by thestraight-line method over the estimated useful life (5 years).
Lease assets:
Finance lease transactions that do not transfer ownership to the lessee
Straight-line method for the duration of the lease period with aremaining balance of zero.

5.

Accounting Standards for Reserves
Allowance for doubtful accounts:
Estimated uncollectible amounts are accounted for based on historical loan loss ratios in the caseof general receivables and based on case-by-case examination of collectability in the case of
specific receivables, including doubtful receivables, in preparation against loss from the inability tocollect on accounts receivable, loans, and the like.
Provision for bonuses:
Estimated bonus payments for the current fiscal year are accounted for in preparation for paymentof bonuses to employees.
Provision for business restructuring:A reasonably estimated future loss amount is accounted for in preparation for loss expected to be
incurred in line with the business structure reform of unprofitable businesses.
Provision for loss on business withdrawal:
A reasonably estimated amount is accounted for in preparation for loss expected to be incurredfrom business withdrawal.
Provision for retirement benefits:

12(Translation)

An amount based on estimated accrued pension liabilities and pension assets as of the end of thecurrent fiscal year is accounted for in preparation for payment of retirement and severance benefits
to employees.
MGC has a retirement and severance trust.
In the calculation of accrued pension liabilities, the method for attributing estimated retirement andseverance benefits to the period up to the end of the current fiscal year is based on the benefit
formula standard.
Prior service cost is amortized by the straight-line method over a portion (10 years) of theestimated average remaining service years of employees at the time the cost was incurred.
Unrecognized actuarial gain or loss is amortized by the declining balance method over a portion(10 years) of the estimated average of remaining service years of employees from the following
fiscal year.
Provision for retirement benefits for directors (and other officers):
MGC accounts for an amount payable at the end of the fiscal year pursuant to internal rules in
preparation for payment of retirement benefits to corporate officers and Executive Officers under
the reserved retirement benefit system for benefits to be paid upon retirement for the same.
Provision for environmental measures:
An estimated amount of disposal and transport costs of polychlorinated biphenyl wastes, based on
the handling cost publicized by Japan Environmental Storage & Safety Corporation, is accounted
for to cover the cost of properly disposing of said chemical waste as required by the Law for
Promotion of Correct Waste Disposal of Polychlorinated Biphenyls.
Provision for loss on business of subsidiaries and associates:
An estimated loss amount to be borne by MGC is accounted for in preparation for loss concerning
the business of subsidiaries and associates, in consideration of the financial condition, etc. of thosesubsidiaries and associates.
Provision for loss compensation:
An estimated amount is accounted for in preparation for loss compensation likely to be incurred in
the future.
6.

Other significant matters that form the basis for preparing the non-consolidated financial statements
Hedge accounting methods“Exceptional accounting” is applied to interest rate swaps in cases where requirements are met.
Accounting method for consumption tax, etc.
Tax segregation method is applied.
Accounting method for retirement benefits
The accounting method for unrecognized actuarial gain or loss and unrecognized prior service costfor retirement and severance benefits is different from that of consolidated financial statement.

Notes on Non-consolidated Balance Sheet
1. Collateralized Assets
Collateralized assets are as follows:(millions of yen)

Investments in securities (Note 1)
Stocks of subsidiaries and affiliates (Note 2)

108
13,520Notes: 1. Collateralized for the loans of Fukushima Gas Power Co.,Ltd.
2. Collateralized for the loans of Brunei Methanol Company Sdn. Bhd. ,Yuzawa Geothermal Power Corporation
And Appi Geothermal Energy Corporation .

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(Translation)

2. Cumulative depreciation of property, plant and equipment:¥309,608 million
Cumulative depreciation includes cumulative impairment loss on fixed assets.
3. Reduction entry directly deducted from the acquisition price of property, plant and equipment:¥9,352 million
4. Guarantees
Loans of affiliates and other companies guaranteed:¥35,677 million

5. Receivables from and Payables to Affiliates
Short-term receivables
Long-term receivables
Short-term payables¥76,295 million¥3,928 million¥52,494 million

Notes on Non-consolidated Statement of Income
Volume of Transaction with Affiliates
Volume of Business Transactions
Sales
Purchase
Volume of Non-Business Transactions¥225,110 million¥98,225 million¥18,092 million

Note on Non-consolidated Statement on Changes in Net Assets
Number of issued and Outstanding Shares
Common Stock
225,739,199SharesClass and number of treasury shares as of the end the current fiscal year:
Common Stock
17,758,765Shares

Note on Deferred Tax Accounting
Major Components of Deferred Tax Assets and Liabilities
Major components of deferred tax assets
Matters related to retirement and severance benefits
Provision for bonuses¥5,447 million¥924 million

Deferred tax assets are presented net of valuation allowance of ¥20,975 million.
Major components of deferred tax liabilities
Reserve for tax purpose reduction entry of non-current assets ¥△1,296 million
Gain on contribution of securities to retirement benefit trust ¥△1,255 million

Notes on Transactions with Affiliated Companies
Subsidiaries and Affiliates, etc.
(millions of yen)
Attribute

Name of Company% Voting

Relationship

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Description ofTransaction

Class

Year-End(Translation)

Subsidiary

Subsidiary

Rights Owned

with AffiliatedCompany

Transaction

Mitsubishi Gas Chemical
Engineering-Plastics(Shanghai) Co., Ltd.

91.05%
directownership

Guarantee
of debts,
etc.

Guarantee
of debts

Tokyo Shokai, Ltd.

100%
indirectownership

Sale ofMGC
product

Sales ofvariousproducts(Note 1)
Provision ofcollateral

VolumeBalance

3,933

--

--

51,396

Accounts
receivable

13,78750%
Provision of
directcollateral,
4,016--(Note 2)
ownershipetc.
26.25%
Guarantee
Guarantee
Subsidiary
Caribbean Gasofindirectof debts,
of debts
29,075--Chemical Ltd.
Affiliate
ownership
etc.
(Note 3)
Notes: 1. Sales of various products are determined in the same way as general trading conditions, referring to market
prices2. MGC has provided shares of Brunei Methanol Company Sdn. Bhd. that it holds as collateral on Brunei Methanol
Company Sdn. Bhd.’s borrowings from financial institutions. MGC has not received any cash in return for thisprovision of collateral. Transaction volume shows the balance of liabilities covered by collateral at the end of the
fiscal year.
3. MGC is guaranteeing the loans of Caribbean Gas Chemical Ltd. without compensation.
4. The transaction amount does not include consumption tax, and the balance at the end of the term includes
consumption tax, etc.
Affiliate

Brunei Methanol
Company Sdn. Bhd.

Notes Related to Per Share Information
Net Asset per ShareNet Income per Share¥1,398.96¥139.33

Other Notes
Amounts less than ¥1 million are rounded off.

- END of Notes to Non-consolidated Financial Statements -- END of this document-

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