MITSUBISHI GAS CHEMICAL COMPANY, INC.

Consolidated Financial Results
For the Fiscal Year Ended March 31, 2010

This document has been translated from the original Japanese as a guide for non-Japanese investors. It contains
forward-looking statements based on a number of assumptions and beliefs made by management in light of
information currently available. Actual financial results may differ materially depending on a number of factors,
including changing economic conditions, legislative and regulatory developments, delay in new product launches,and pricing and product initiatives of competitors.

SUMMARY OF FINANCIAL STATEMENTS (Consolidated)
Results for the fiscal year ended March 31, 2010
MITSUBISHI GAS CHEMICAL COMPANY, INC.
Stock Code:May 7, 2010

4182

Listed exchanges: First section, Tokyo Stock Exchange
Inquiries: Tomohiko Okubo
General Manager
Corporate Communications Division
Telephone: +81 3 3283-5041

http://www.mgc.co.jp
President:
Kazuo Sakai
Scheduled date of general shareholders' meeting: June 25, 2010
Scheduled date of payment of dividend: June 7, 2010
Planned date of filing of the financial report: June 25, 2010

1. Consolidated financial results for the fiscal year ended March 31, 2010
1) Consolidated operating results
Percentage figures represent changes compared to the previous fiscal year

Millions of yen, rounded down

Fiscal year ended
March 31, 2010

Fiscal year ended
March 31, 2009(% change)

Sales ............................................................................
Operating income.........................................................
Ordinary income...........................................................
Net income ...................................................................
Earnings per share (¥) .................................................
Fully diluted earnings per share (¥)..............................
Return on equity (%) ....................................................
Ratio of ordinary income to total assets (%).................
Ratio of operating income to sales (%) ........................

384,528
4,090
7,365
5,827
12.89
12.61
2.2
1.4
1.1

(% change)(14.1)
5.6(16.9)

447,647(3,103)
6,975
7,014
15.30
14.97
2.5
1.2
(0.7)

(13.8)(88.7)(82.6)

Note: Equity in earnings of affiliates: Fiscal year ended March 31, 2010: ¥ 8,794 million; Fiscal year ended March 31, 2009: ¥ 14,706 million

2) Consolidated financial position

Millions of yen, rounded down

As of March 31, 2010
Total assets..................................................................
Net assets ....................................................................
Shareholders’ equity ratio (%) ......................................
Net assets per share (¥)...............................................

As of March 31, 2009

539,431
278,09449.9
595.56

530,592
272,08349.9
585.90Note: Shareholders’ equity at end of period: Fiscal year ended March 31, 2010: ¥ 269,213 million; Fiscal year ended March 31, 2009: ¥ 264,861
million3) Consolidated cash flows

Cash flow from operating activities...............................
Cash flow from investing activities ...............................
Cash flow from financing activities ...............................
Cash and cash equivalents at end of period ................

Millions of yen, rounded down

Fiscal year ended
March 31, 2010
31,326(33,662)(15,354)
36,048

Fiscal year ended
March 31, 2009
49,027(41,253)
11,54153,065

2. Dividends
Fiscal year ended
March 31, 2009
Interim dividend per share (¥) ......................................
Year-end dividend per share (¥)...................................
Annual dividend per share (¥) ......................................
Total dividend payment (millions of yen) ....................
Dividend payout ratio (%) .............................................
Dividend to net assets ratio (%) ...................................

Fiscal year ended
March 31, 2010

8.00
8.00
16.00
7,312
104.6
2.6

4.00
4.00
8.00
3,616
62.1
1.4

Fiscal year ending
March 31, 2011
(Forecast)
4.00
4.00
8.00
-25.8
--

3. Forecasts for the fiscal year ending March 31, 2011 (April 1, 2010 to March 31, 2011)
Percentage figures represent changes compared to the previous interim period or fiscal year

Millions of yen, rounded downInterim period ending
September 30, 2010

Fiscal year ending
March 31, 2011(% change)

Sales ............................................................................
Operating income.........................................................
Ordinary income...........................................................
Net Income...................................................................
Earnings per share (¥)

220,000
6,000
10,000
4,000
8.85

1

21.7
-

(% change)

450,000
16,00024,00014,000
30.97

17.0
291.1
225.8
140.2

4. Other
1) Transfer of important subsidiaries during the period (Transfers of certain subsidiaries resulting in changes in the scope of
consolidation): 1 new company, Lingyou Engineering-Plastics (Shanghai) Co., Ltd.
2) Changes in accounting methods, procedures and presentation in the preparation of these financial statements (Key items
mentioned in Material Items Forming the Basis for the Preparation of the Consolidated Financial Statements for the Fiscal Year)
1. Changes following revisions to accounting standards: Yes
2. Other changes: None
3) Number of shares outstanding (ordinary shares)
1. Number of shares outstanding at end of the fiscal year (including treasury shares):
March 31, 2010: 483,478,398 shares

March 31, 2009: 483,478,398 shares

2. Number of treasury shares at end of the fiscal year:
March 31, 2010: 31,446,964 shares

March 31, 2009: 31,420,297 shares

Reference: Outline of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2010
1) Non-consolidated operating results
Percentage figures represent changes compared to the previous fiscal year

Millions of yen, rounded down

Fiscal year ended
March 31, 2010

Fiscal year ended
March 31, 2009(% change)

Sales .............................................................
Operating income..........................................
Ordinary income............................................
Net income....................................................
Earnings per share (¥) ..................................
Fully diluted earnings per share (¥) ..............

278,955(7,225)
307
4,578
10.13
9.90

(10.0)(97.6)(63.9)

2) Non-consolidated financial position

Total assets...................................................
Net assets .....................................................
Shareholders’ equity ratio (%).......................
Net assets per share (¥) ...............................

(% change)

310,017(3,112)
12,695
12,68627.68
27.08(16.9)(65.6)(55.5)

Millions of yen, rounded down

As of March 31, 2010
375,704
174,96646.6
387.07

As of March 31, 2009
360,896
173,70148.1
384.25

Note: Shareholders’ equity: Fiscal year ended March 31, 2010: ¥ 174,966 million; Fiscal year ended March 31, 2009: ¥ 173,701 million

2. Non-consolidated forecasts for the fiscal year ending March 31, 2011 (April 1, 2010 to March 31, 2011)
Percentage figures represent changes compared to the previous interim period or fiscal year

Sales ..............................................................
Operating income...........................................
Ordinary income.............................................
Net income.....................................................
Earnings per share (¥)

Interim period ending
September 30, 2010(% change)
160,000
22.6
1,500
5,000
1,000
2.21

Millions of yen, rounded down

Fiscal year ending March 31, 2011
330,000
6,000
12,0007,000
15.49(% change)
18.3
52.9

Notice regarding the appropriate use of the financial forecasts
Forecasts, etc., recorded in this document contain forward-looking statements that are based on management’s estimates, assumptions andprojections at the time of publication. A number of factors could cause actual results to differ materially from expectations.

21. Consolidated Operating Results
COMMENTARY ON RESULTS
Note: Comparisons in the following section of the report are with the previous fiscal year, unless stated otherwise.

Overview of results for this period
The Japanese economy remained weak during the year under review, with continued low levelsof capital expenditure and personal consumption, despite some signs of recovery.
The business environment for the Mitsubishi Gas Chemical Company, Inc. group of companies(“MGC Group”) remained severe throughout the year, with low demand for specialty chemicals andother core MGC Group products in the main markets of Japan, Europe and the U.S., despite somerecovery in demand for certain semiconductor- and LCD panel-related products, supported byeconomic stimulus measures in Japan and other countries and by demand in emerging economies.
Problems also arose at some core Group manufacturing facilities, which had a large impact onearnings.
MGC Group’s efforts during the year were directed at maintaining and improving sales volumes
and reducing costs to boost underlying profitability, while implementing a range of initiatives in linewith the core policies outlined in MGC Will 2011, MGC’s medium-term management plan that began
in the year under review.
Consolidated net sales for MGC Group for the fiscal year ended March 31, 2010 decreased¥63.1 billion, or 14.1%, to ¥384.5 billion. Consolidated operating income was ¥4.0 billion, an
improvement of ¥7.1 billion from the operating loss recorded in the previous year, and consolidated
ordinary income increased ¥0.3 billion, or 5.6%, to ¥7.3 billion. Consolidated net income for theyear decreased ¥1.1 billion, or 16.9%, to ¥5.8 billion.
Non-consolidated net sales decreased ¥31.0 billion, or 10.0%, to ¥278.9 billion. An operating lossof ¥7.2 billion was recorded, representing a deterioration of ¥4.1 billion, and ordinary income fell
¥12.3 billion, or 97.6 %, to ¥0.3 billion. Non-consolidated net income for the year decreased ¥8.1
billion, or 63.9 %, to ¥4.5 billion.
Results by business segment
Natural Gas Chemicals Company
In the methanol business, earnings fell for the full year due to a substantial year-on-year decline
in the overall market, despite higher sales volumes achieved through pre-marketing for new plants
brought on line in 2010. Earnings from overseas methanol producing companies accounted for by
the equity method also declined significantly.
In methanol and ammonia derivatives, revenue and earnings declined, affected both bycontinued weak overall demand and the impact of two prolonged stoppages arising frommechanical problems at an ammonia plant.
Earnings from enzymes and coenzymes were slightly higher than in the previous year, with a fallin the sales price of coenzyme Q10 offset by an increase in domestic sales volumes of mainly highadded value products, along with lower raw material costs.
In the sale of natural gas and other energy, earnings decreased significantly due to lower sales

3

volumes and considerably lower sales prices for crude oil.
Consolidated net sales in the Natural Gas Chemicals Company for the year ended March 31,
2010 decreased ¥32.9 billion, or 23.0%, to ¥110.5 billion, and an operating loss of ¥6.5 billion wasrecorded, representing a deterioration of ¥1.6 billion.
Aromatic Chemicals Company
In specialty aromatic chemical products, revenue and earnings decreased significantly, with large
falls in first-half sales volumes of products such as meta-xylenediamine, Nylon-MXD6 and aromatic
aldehyde due to a significant impact from prolonged inventory adjustments by some customers,
despite some recovery in demand seen in the second half of the year.
Revenue and earnings from purified isophthalic acid business both declined, with a slight rise insales volumes from a recovery in demand offset by deteriorating margins concomitant with intensecompetition amid oversupply in the market.
Consolidated net sales in the Aromatic Chemicals Company for the year ended March 31, 2010
decreased ¥26.1 billion, or 21.7%, to ¥94.4 billion. An operating loss of ¥6.3 billion was recorded,
representing a narrowing of the previous year’s loss due to a large decrease in the value of
inventory assets written down.
Specialty Chemicals Company
In inorganic chemicals for industrial use, revenues declined due to a reduction in sales volumesof hydrogen peroxide and other products, but earnings increased as a result of price revisions.
Revenue and earnings from chemicals for the electronics industry declined, despite someevidence of recovering demand.
In engineering plastics business, revenue and earnings from polycarbonate decreased due to
weak prices in the domestic market. In polyacetal, however, earnings increased due to lower raw
methanol prices and other such factors, despite revenue falling on lower sales volumes. Sales andearnings from polycarbonate sheets and films increased due to strong demand for films used in flat
panel displays.
Consolidated net sales in the Specialty Chemicals Company for the year ended March 31, 2010
decreased ¥6.2 billion, or 5.0%, to ¥118.3 billion, and operating income increased ¥4.4 billion, or
69.7%, to ¥10.8 billion.
Information & Advanced Materials Company
Revenue and earnings from materials for printed circuit boards both increased, reflecting a
recovery in sales volumes of BT resin for semiconductor packaging in the first quarter that
continued through the second quarter, without significant impact from seasonal adjustments. Salesof LE sheets, the entry sheets used in mechanical drilling of printed circuit boards, weakened in theface of intensified competition in overseas markets. Losses at consolidated subsidiary Japan Circuit
Industrial Co., Ltd., which manufactures printed circuit boards, narrowed considerably due toreduced fixed costs and the impact of other efficiency measures.
Sales of oxygen absorber AGELESS® fell slightly, reflecting strong competition in its main market,
the Japanese domestic food industry.
Consolidated net sales in the Information & Advanced Materials Company for the year ended
March 31, 2010 increased ¥2.3 billion, or 4.0%, to ¥60.3 billion, and operating income increased¥3.5 billion, or 152.6%, to ¥5.8 billion.
Other
Consolidated net sales in the Other business segment for the year ended March 31, 2010
decreased to ¥0.8 billion, and operating income decreased to ¥0.4 billion.

4

Consolidated forecasts for the fiscal year ending March 31, 2011
Although the economic situation is gradually recovering, current conditions vary significantly
between regions and industry sectors and there are concerns of further rises in raw materials costs
and a continued strengthening of the yen.
At MGC Group, initiatives during the year will be based on the policies outlined in themedium-term business plan MGC Will 2011. The key strategic themes in this plan are:strengthening and expanding core businesses; accelerating new product development andcommercialization; and improving quality in support of sustainable growth. MGC aims to develop
and grow sustainably on a global stage as a highly differentiated, widely recognized chemicals
group operating from a strong platform of proprietary technology.
Operating income is forecast to increase during the year ending March 31, 2011 mainly as aresult of higher sales volumes of chemicals for the electronics industry, continued firm sales ofpolycarbonate sheets and films and BT materials, and reduced losses on methanol and ammonia
derivatives and aromatic chemicals.
Equity in earnings is expected to increase, mainly at overseas methanol producing companies,
due to higher methanol prices and increased sales volumes resulting from the operation of newplants.
An extraordinary loss of ¥5.0 billion has been factored into forecasts due to a loss concomitantwith the adoption of financial accounting standards for asset retirement obligations and a loss on
disposal of fixed assets.
Consolidated full-year forecasts for the year ending March 31, 2011 are for net sales of ¥450.0
billion, operating income of ¥16.0 billion, ordinary income of ¥24.0 billion, and net income of ¥14.0
billion. Non-consolidated forecasts are for net sales of ¥330.0 billion, operating income of ¥6.0
billion, ordinary income of ¥12.0 billion, and net income of ¥7.0 billion.
The ¥/US$ exchange rate used as the basis for these forecasts is ¥90/US$1.

2. Consolidated financial position
Assets, liabilities and net assets
Total consolidated assets as of March 31, 2010 were ¥539.4 billion, ¥8.8 billion higher than at theend of the previous fiscal year. Current assets increased ¥2.7 billion to ¥218.0 billion, primarily due
to an increase in trade notes and accounts receivable associated with a recovery of sales in thesecond half of the year. Fixed assets increased ¥6.0 billion to ¥321.3 billion, primarily due to anincrease in investment securities concomitant with an improvement in the market value of securities
held in a recovering stock market.
Total liabilities increased ¥2.8 billion to ¥261.3 billion. Current liabilities decreased ¥0.7 billion,
with trade notes and accounts payable increasing by ¥16.1 billion, while ¥12.9 billion of short-termborrowing was repaid. Non-current liabilities increased ¥3.6 billion due to an increase in long-termborrowing and other such factors. Net interest-bearing debt (short-term debt, bonds payable within
one year, long-term debt, bonds and lease obligations) decreased ¥9.0 billion to ¥165.8 billion.
Net assets increased ¥6.0 billion to ¥278.0 billion. In addition to the increase in market value ofinvestment securities mentioned above, this outcome was influenced by in improvement in foreign
currency translation adjustments relating to the recording of net assets at overseas consolidated
subsidiaries.
As a result of the above, the shareholders’ equity ratio was 49.9% as of March 31, 2010, thesame as one year earlier. Net assets per share at the end of the period was ¥595.56, compared to5¥585.90 one year earlier.

Consolidated cash flows
In line with MGC Will 2011, MGC Group’s current medium-term management plan, MGC isemphasizing the allocation of resources to leverage the different characteristics and technicalstrengths within each business in everything from basic chemicals through to high-performancematerials, and strengthening and expanding its core businesses to expand earnings. In order toconstruct and maintain a sound financial condition, MGC is working to create free cash flow, taking
steps such as disposing of unutilized assets and optimizing inventories.
Total cash and cash equivalents at of March 31, 2010 was ¥36.0 billion, ¥17.0 billion lower than at
the end of the previous fiscal year.
Operating activity cash flow
Net cash provided by operating activities was ¥31.3 billion, a decrease of ¥17.7 billion comparedto the previous year. This decrease was primarily due to trade notes and accounts receivable
increasing by a greater amount than trade notes and accounts payable, along with a reduction in
dividend income from companies accounted for by the equity method.
Investing activity cash flow
Net cash outflow from investing activities was ¥33.6 billion, ¥7.5 billion less than the outflow
recorded in the previous year. This was primarily because of the acquisition of fixed assets andinvestment securities, even though cash inflow was received from the sale of investment securities.
Financing activity cash flow
Net cash outflow from financing activity was ¥15.3 billion, compared to an inflow of ¥11.5 billion in
the previous year. This outflow was primarily due to repayment of long-term borrowings and thepayment of dividends.
Dividend policy, payments and forecasts
MGC view returns to shareholders as a key Group management issue. The Company makes acomprehensive assessment of trends in business performance, capital expenditure plans, financial
position and other factors from a medium- to long-term point of view, aiming to optimally balance
the returning of funds to shareholders via stable dividends with the retention of sufficient earnings to
implement measures to increase future enterprise value. From the perspective of optimizing capitalefficiency, treasury share acquisitions are considered flexibly in accordance with the market
environment.
For the year under review, the Company plans to pay a year-end dividend of ¥4.0 per share, adecrease of ¥4.0 per share from the previous year. In combination with the interim dividend of ¥4.0
per share already paid, this represents an annual dividend of ¥8.0 per share and a consolidated
payout ratio of 62.1%, compared to an annual dividend of ¥16.0 per share in the previous year.
For the year ending March 31, 2011 the Company plans an interim dividend of ¥4.0 per share anda year-end dividend of ¥4.0 per share.

3. Management policy
Basic management approach
Based on the MGC Group management philosophy of developing in harmony with society
through using chemistry to create diverse value, MGC aims to realize CSR in all its activities whiledeveloping and growing sustainably on a global stage as a highly differentiated, widely recognizedchemicals group operating from a strong platform of proprietary technology.
Medium-term management indices and targets
MGC decided that, in order to follow a path of further sustainable growth it was necessary to6formulate and implement a plan from a long-term perspective. Consideration was first given to
determining what kind of company MGC should aim to become by 2021, the 50th anniversary of its
establishment. As the first step in achieving this objective, MGC formulated MGC Will 2011, its
medium-term management plan to fiscal 2011 (the fiscal year ending March 31, 2012) and began
implementing the plan in April 2009.
The main policies and quantitative targets in the plan are outlined below.
● The MGC Group of 2021
・Trusted by society and realizing CSR in all corporate activities
・Sales exceeding ¥1 trillion, and in the global Top 30 chemical companies
・Highly profitable and research driven, achieving global excellence● Basic strategies of MGC Will 2011
1. Strengthen and expand core businesses
2. Accelerate new product development and commercialization
3. Improve total enterprise quality in support of sustainable growth
Quantitative targets
Consolidated financial indices
Net sales
Operating income
Ordinary income
ROA (ordinary income/total assets)
Debt-equity ratio

Year ending March 2012
¥550.0 bn¥40.0 bn¥50.0 bn
9.0%
Below 0.6

Key issues
MGC Group will continue to emphasize the allocation of resources to the development of asuperior product portfolio covering everything from basic chemicals through to high-performancematerials, and will establish differentiation strategies that reflect the different characteristics ofproducts within each category. By concentrating management resources as appropriate, MGC will
be working to strengthen and expand its core businesses.
MGC will also take steps to accelerate the pace of new product development andcommercialization. Key issues to be addressed in this respect include making use of the technology
platform developed under the previous medium-term plan, aligning the multiple technologies in theGroup with the actual needs of the market place, and realizing synergies between Group
companies and divisions.
MGC will pursue sustainable growth through taking steps to further improve total enterprisequality in every facet of operations. Important management issues identified in the new plan include
achieving zero accidents or disasters, actively contributing to the reduction of environmental impact,
recruiting and fostering personnel, reducing costs, improving productivity, fine-tuning existing
technologies, constructing a more robust financial foundation, and enhancing global groupmanagement.
Recently there have been indications of a recovery in demand across the range of MGC’s
products and performance is expected to improve substantially during the next fiscal year. However,amid sustained high raw materials costs, and lingering uncertainty over the strength of theeconomic recovery, MGC will continue to implement rigorous cost-cutting and price revisions, while
adapting its business structure rapidly to changes in business conditions as they arise.

7

4. Consolidated Financial Statements(1) Consolidated Balance Sheets
Millions of yen, rounded down
As of March 31, 2010

As of March 31, 2009ASSETS
Current assets
Cash .................................................................

27,56023,209Trade notes and accounts receivable ...............

104,086

74,549

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

10,01630,845Merchandise and finished goods ......................

33,18538,599Work in progress...............................................

9,948

8,386

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

18,872

18,351

Deferred tax assets ...........................................

3,494

3,303

Other current assets .........................................

11,622

18,639Less allowance for doubtful receivables ...........

(704)

(585)

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

218,082

215,298

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

49,683

46,662

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

67,25371,495Land ..................................................................

22,93922,993

Property, plant and equipment

Leased assets...................................................

382

296

Construction in progress ...................................

17,301

21,474

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

3,774

3,724

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

161,334

166,647

Intangible assets
Leased assets...................................................

53

48

Software............................................................

2,671

1,945

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

1,932

886

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

4,658

2,881

Investments in securities...................................

130,471

121,540

Long-term loans receivable...............................

2,733

3,312

Deferred tax assets ...........................................

17,457

15,270Investments and other assets

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

6,323

7,222

Less allowance for doubtful receivables ...........

(1,629)(1,580)Total investments and other assets..............

155,356

145,765

Total fixed assets .........................................

321,348

315,293

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

539,431

530,5928

Consolidated Balance Sheets (contd.)
Millions of yen, rounded down
As of March 31, 2010

As of March 31, 2009

LIABILITIESCurrent liabilities
Trade notes and accounts payable ...................

56,48640,301

Short-term borrowings ......................................

74,004

86,974

Accrued expenses ............................................

12,851

14,636

Lease obligations ..............................................

116

82

Accrued income taxes.......................................

2,421

361

Deferred tax liabilities........................................

175

157

Accrued bonuses ..............................................

3,645

3,777

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

4

8

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

10,591

14,786

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

160,297

161,088

Corporate bonds ...............................................

20,00020,000Long-term borrowings .......................................

71,39467,604

Lease obligations ..............................................

332

272

Non-current liabilities

Deferred tax liabilities........................................

866

684

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

4,630

3,733

Directors’ retirement benefits ............................

1,046

1,048

Provision for abandoned mine expenses ..........

582

536

Provision for environmental initiatives ...............

711

711

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

219

236

Amortization of negative goodwill......................

229

434

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

1,025

2,158

Total non-current liabilities ...........................

101,038

97,421

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

261,336

258,509

41,97041,970

NET ASSETSStockholders’ equity
Common stock ..................................................
Additional paid in capital ...................................

35,59035,589Retained earnings.............................................

222,394

221,990

Treasury stock, at cost ......................................

(7,905)(7,891)

292,048

291,658

Valuation and translation adjustments
Unrealized gains (loss)
on other securities .........................................

(1,013)(3,330)

Deferred gains on hedges...............................

(1)

29

Total stockholders’ equity

Surplus on revaluation of land ...........................

192

192

Foreign currency translation adjustments..........

(22,013)(23,688)

Total valuation and translation adjustments...

(22,835)(26,797)

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

8,881

7,222

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

278,094

272,083

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

539,431

530,5929

(2) Consolidated Statements of Income

Net sales ....................................................
Cost of sales............................................
Gross profit ............................................
Selling, general and administrative
expenses..............................................
Operating income (loss)..........................
Non-operating income
Interest income.......................................
Dividend income.....................................
Equity in earnings of affiliates ................
Other ......................................................
Total non-operating income ................
Non-operating expenses
Interest expense ....................................
Personnel expenses for seconded
employees..............................................
Exchange losses ....................................
Loss on disposal of non-current assets..
Other ......................................................
Total non-operating expenses ............
Ordinary income (loss)............................
Extraordinary income
Gain on sale of investment securities.....
Gain on sale of fixed assets ...................
Insurance income...................................
Subsidy income......................................
Total extraordinary income .................
Extraordinary losses
Impairment losses ..................................
Loss on business withdrawal .................
Bad-debt loss .........................................
Loss on change of overseas investment
plan ........................................................
Loss on disposal of non-current assets..
Other ......................................................
Allowance for doubtful accounts ............
Incident-related expenses ......................
Loss on valuation of investment securities
Loss on change of equity in affiliates .....
Total extraordinary losses ..................
Net income before income taxes
and minority interests .............................
Income taxes, etc. .....................................
Refund of income taxes .............................
Income taxes - deferred.............................
Total income taxes ....................................
Minority interests in income .......................
Net income ...............................................

April 1, 2009 - March 31,
2010
384,528
326,738
57,790Millions of yen, rounded down
April 1, 2008 - March 31,
2009447,647
395,626
52,02053,69955,124

4,090(3,103)

201
1,182
8,794
1,954
12,133339
1,432
14,706
2,195
18,673

2,159

2,194

1,767

1,180

1,046
1,158
2,725
8,858
7,365

1,264
822
3,133
8,595
6,975

1,942
297
193
2,433

262
262

519
374
364

-

341

-

265
401
2,269

234
1,092
413
213
10
1,964

7,530

5,273

4,303
(3,247)
1,055
646
5,827

1,061
(732)
(2,580)(2,251)
510
7,014

10

(3) Consolidated Statements of Changes in Net Assets
Millions of yen, rounded down
April 1, 2009 -March
April 1, 2008 - March
31, 2010
31, 2009
Stockholders’ equity
Common stock
Balance at end of previous period..................................
Balance at end of period ................................................
Additional paid-in capital
Balance at end of previous period..................................
Change during the period
Disposition of treasury stock.......................................
Total change during the period ...................................
Balance at end of period ................................................
Retained earnings
Balance at end of previous period..................................
Changes resulting from accounting changes offoreign subsidiaries ....................................................
Change during the period
Cash dividends ...........................................................
Net income .................................................................
Decrease resulting from newly consolidated
subsidiary ...................................................................
Increase resulting from the merger.............................
Increase resulting from affiliates newly accounted
for by the equity method .............................................
Total change during the period ...................................
Balance at end of period ................................................
Treasury stock
Balance at end of previous period..................................
Change during the period
Purchase of treasury stock .........................................
Disposition of treasury stock.......................................
Total change during the period ...................................
Balance at end of period ................................................
Total stockholders’ equity
Balance at end of previous period..................................
Changes resulting from accounting changes offoreign subsidiaries ....................................................
Change during the period
Cash dividends ...........................................................
Net income .................................................................
Decrease resulting from newly consolidated
subsidiary ...................................................................
Increase resulting from the merger.............................
Increase resulting from affiliates newly accounted
for by the equity method .............................................
Purchase of treasury stock .........................................
Disposition of treasury stock.......................................
Total change during the period ...................................
Balance at end of period ................................................

11

41,97041,97041,97041,97035,58935,5761
135,59012
1235,589221,990

222,047-(144)(5,424)(7,393)

5,827

7,014

-

(206)

-

44

403
222,394628
87
221,990(7,891)(4,287)

(15)
1
(14)
(7,905)(3,617)12(3,604)(7,891)

291,658

295,307-(144)(5,424)(7,393)

5,827

7,014

-

(206)

-

44

(15)
2
390
292,048628(3,617)24(3,504)
291,658

Consolidated Statements of Changes in Net Assets (contd.)
Millions of yen, rounded down
April 1, 2008 - March
April 1, 2009 -March
31, 2010
31, 2009
Valuation and translation adjustments
Net unrealized gain (loss) on other securities
Balance at end of previous period..................................
Change during the period
Net changes other than stockholders’ equity..............
Total changes during the period .................................
Balance at end of period ................................................
Deferred gains on hedges
Balance at end of previous period..................................
Change during the period
Net changes other than stockholders’ equity..............
Change during the period ...........................................
Balance at end of period ................................................
Surplus on revaluation of land
Balance at end of previous period..................................
Balance at end of period ................................................
Foreign currency translation adjustments
Balance at end of previous period..................................
Change during the period
Net changes other than stockholders’ equity..............
Total changes during the period .................................
Balance at end of period ................................................
Total valuation and translation adjustments
Balance at end of previous period..................................
Change during the period
Net changes other than stockholders’ equity..............
Total changes during the period .................................
Balance at end of period ................................................
Minority interests
Balance at end of previous period .....................................
Change during the period
Net changes other than stockholders’ equity .................
Total changes during the period.....................................
Balance at end of period....................................................
Total net assets
Balance at end of previous period .....................................
Net changes other than stockholders’ equity .....................
Change during the period ..................................................
Cash dividends ..............................................................
Net income.....................................................................
Decrease resulting from newly consolidated
subsidiary .......................................................................
Increase resulting from the merger ................................
Increase resulting from affiliates newly accounted forby the equity method ......................................................
Purchase of treasury stock.............................................
Disposition of treasury stock ..........................................
Net changes other than stockholders’ equity .................
Total changes during the period.....................................
Balance at end of period....................................................

12(3,330)10,8672,317
2,317(1,013)(14,197)(14,197)(3,330)

29

129

(31)
(31)
(1)

(99)
(99)
29

192
192

192
192

(23,688)(4,181)

1,675
1,675
(22,013)(19,507)(19,507)(23,688)(26,797)

7,007

3,961
3,961
(22,835)(33,804)(33,804)(26,797)

7,222

9,706

1,659
1,659
8,881

(2,484)(2,484)
7,222

272,083-

312,021(144)(5,424)(7,393)

5,827

7,014

-

(206)

-

44

(15)
2
5,621
6,011
278,094628(3,617)24(36,289)(39,793)
272,083(4) Consolidated Statements of Cash Flows
Millions of yen, rounded down
April 1, 2009 - March 31, April 1, 2008 - March 31,
2010
2009
Cash flows from operating activities
Net income before income taxes and minority interests..........
Depreciation and amortization.................................................
(Gain) loss on disposal of property and equipment .................
Amortization of goodwill ..........................................................
Impairment losses ...................................................................
Equity in earnings of affiliates..................................................
Increase (decrease) in allowance for doubtful receivables......
Increase (decrease) in reserve for retirement andseverance benefits ..............................................................
Interest income and dividend income......................................
Interest expenses....................................................................
(Gain) loss on sales of securities and investment securities ...
(Gain) loss on valuation of securities and investment
securities .............................................................................
(Gain) loss on change of equity in affiliates.............................
(Increase) decrease in notes and accounts receivable ...........
(Increase) decrease in inventories ..........................................
Increase (decrease) in trade notes and accounts payable......
Increase (decrease) in consumer tax, etc. ..............................
Increase (decrease) in reserve for bonuses to directors .........
Other .......................................................................................
Sub-total ...........................................................................
Interest and dividends received...............................................
Dividends received from equity method affiliates ....................
Interest paid ............................................................................
Income taxes (paid) refund .....................................................
Net cash provided by operating activities ..................
Cash flows from investing activities
Purchase of short-term investments........................................
Proceeds from sale of short-term investments .......................
Purchase of fixed assets .........................................................
Proceeds from sale of fixed assets .........................................
Purchase of investments in securities .....................................
Proceeds from sale of investments in securities ....................
Payment of loans receivable ..................................................
Proceeds from collection of loans receivable .........................
Other ......................................................................................
Net cash used in investing activities ............................
Cash flows from financing activities
Increase (decrease) in short-term borrowings........................
Proceeds from long-term debt................................................
Payments on long-term debt ..................................................
Redemption of bonds .............................................................
Purchase of treasury stock.....................................................
Dividends paid to stockholders...............................................
Dividends paid to minority stockholders of subsidiaries .........
Other ......................................................................................

13

7,530
29,535466(28)
519(8,794)167

5,273
28,934619
117(14,706)
545

894

18

(1,384)2,159(2,050)(1,771)
2,194
(7)

4

213

(29,579)
3,510
17,146
552
(2)
(520)
20,1271,392
9,182(2,200)2,824
31,326

10
62,8303,011(43,000)
(110)
24
1,526
45,722
1,763
15,382(2,170)(11,671)
49,027(990)
894(31,634)
1,181(6,878)(946)
890(38,121)
1,193(4,725)

4,030
(837)
1,015
(444)
(33,662)

51
(991)
1,881
(485)
(41,253)(3,130)60,719(66,736)(15)(5,424)
(621)
(145)

4,681
35,350(15,936)(1,000)(3,617)(7,393)(521)(22)

Consolidated Statements of Cash Flows (contd.)

Millions of yen, rounded down
April 1, 2009 - March 31,
2010

April 1, 2008 - March 31,
2009

Net cash used in financing activities ............................
Effect of exchange rate changes on cash and cash
equivalents .............................................................................

(15,354)

11,541(445)(3,871)

Increase (decrease) in cash and cash equivalents .............
Cash and cash equivalents at the beginning of period ......
Increase (decrease) in cash and cash equivalents due tochange in scope of consolidation .............................................
Increase in cash and cash equivalents resulting from merger..
Cash and cash equivalents at the end of the period...........

(18,135)
53,065

15,442
37,235

1,119

117

36,048269
53,065(5) Notes regarding going concerns:
No applicable items.

(6) Segment information
a. Business segments
For the year ended March 31, 2010 (April 1, 2009 – March 31, 2010)
Millions of yen, rounded down
Natural gas
chemicals

Aromatic
chemicals

Specialty
chemicals

Information
chemicals
andadvancedmaterials

Sales to outside customers ..

110,502

94,474

118,31160,376864Inter-segment sales ...........

5,164

1,391

1,867

10

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

115,667

95,866

120,178

Operating expenses ............

122,198

102,194

Operating income (loss) .......

(6,531)Elimination/
corporate

Consolidated

384,528-

384,528

185

8,620

(8,620)-60,384

1,050

393,149(8,620)384,528

109,362

54,582571

388,909(8,471)

380,438(6,328)

10,815

5,804

478

4,239

(149)

4,090

Other

Total

Assets, depreciation andamortization, capital
expenditure
Assets ...............................

154,566

113,798

125,698

59,853

14,621

468,538

70,892539,431

Amortization of goodwill .......

7,132

8,550

8,852

4,989

11

29,535-29,535

Capital expenditure .............

6,914

8,206

8,610

3,827

8

27,567-27,56714

For the year ended March 31, 2009 (April 1, 2008 – March 31, 2009)
Millions of yen, rounded down
Natural gas
chemicals

Aromatic
chemicals

Specialty
chemicals

Sales to outside customers ..

143,496

120,672

124,536

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

7,361

1,377

1,910

Information
chemicals
andadvancedmaterials

Elimination/
corporate

Other

Total

Consolidated

58,040900

447,647-447,64717

237

10,903(10,903)-

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

150,857

122,049

126,446

58,0581,138

458,550(10,903)447,647

Operating expenses ............

155,710

129,404

120,074

55,760566

461,516(10,765)

450,750

Operating income (loss) ......

(4,853)(7,354)

6,372

2,297

571

(2,965)(137)(3,103)

155,957

118,785

113,491

58,80820,341

467,384

63,208

530,592

Assets, depreciation andamortization, capital
expenditure
Assets...............................
Amortization of goodwill.......

6,372

7,744

9,720

5,086

10

28,934-28,934

Capital expenditure .............

10,735

10,627

9,051

4,696

9

35,119-35,119Notes:
1. The main products of each segment are as follows:
Natural gas chemicals:
Methanol, ammonia, amines, methacrylate derivatives, polyols, enzymes and coenzymes, natural gas andcrude oilAromatic chemicals:
Xylene isomers and xylene derivatives
Specialty chemicals:
Hydrogen peroxide and other industrial inorganic chemicals, electronic chemicals and engineering plastics
Information and advanced materials:
Printed circuit board materials, printed circuit boards and oxygen absorber (AGELESS®)
Other:
Real estate business, etc
2. Major items in all company assets included under elimination or corporate are parent company surplus operating
funds (cash and marketable securities), long-term investment funds (investment securities), and assets of theadministration division. For the fiscal year under review, these items totaled ¥99,849 million. For the previous
year, these items totaled ¥98,919 million.
3. From the fiscal year ended March 31, 2009, the Company adopted the ”Accounting Standard for Measurementof Inventories” (ASBJ Statement No. 9 of July 5, 2006). As the result of this change, operating income of eachsegment for the year ended March 31, 2009 decreased as follows:
Millions of yen, rounded down
Natural gas chemicals(1,040)Aromatic chemicals(3,343)Specialty chemicals(1,027)
Information and advanced materials(1,334)15

4. From the fiscal year ended March 31, 2009, the Company and its domestic consolidated subsidiaries changed
the estimated useful lives of machinery. As a result of this change, operating income of each segment for the
fiscal year ended March 31, 2009 increased (decreased) as follows:
Millions of yen, rounded down
Natural gas chemicals(107)
Aromatic chemicals
270
Specialty chemicals(220)
Information and advanced materials(396)

b. Geographic Segments
For the year ended March 31, 2010 (April 1, 2009 – March 31, 2010)
Millions of yen, rounded down
Elimination/
Consolidated
corporate

Japan

Asia

Other regions

Total

Sales to outside customers......................

333,11330,50920,905384,528-

384,528

Inter-segment sales and transfers ............

31,9974,594

68

36,659(36,659)-

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

365,110

35,104

20,973421,188(36,659)

384,528

Operating expenses ...............................

365,249

32,291

19,791

417,332(36,894)

380,438

Operating income (loss) ..........................

(138)

2,813

1,181

3,856

234

4,090

Assets ..................................................

509,485

31,334

13,126553,947(14,516)

539,431

For the year ended March 31, 2009 (April 1, 2008 – March 31, 2009)
Millions of yen, rounded down
Elimination/
Consolidated
corporate

Japan

Asia

Other regions

Total

Sales to outside customers......................

369,279

43,731

34,636447,647-447,647

Inter-segment sales and transfers ............

34,2985,783

850

40,933(40,933)-

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

403,577

49,51535,487

488,580(40,933)

447,647

Operating expenses ...............................

409,673

46,51835,289491,481(40,730)

450,750

Operating income (loss) ..........................

(6,095)

2,997

197

(2,901)(202)(3,103)

Assets ..................................................

502,82123,015

12,905

538,742(8,149)530,592

Notes:
1. The major countries or regions in the respective divisions are as follows:
Asia: Korea, China, Taiwan, Singapore, Thailand and Indonesia
Other: U.S.A.
2. From the fiscal year ended March 31, 2009, the Company adopted the ”Accounting Standard for Measurementof Inventories” (ASBJ Statement No. 9 of July 5, 2006). As the result of this change, operating income in Japanfor the year ended March 31, 2009 decreased ¥6,745 million.
3. From the year ended March 31, 2009, the Company and its domestic consolidated subsidiaries changed theestimated useful lives of machinery.
As a result, operating income in Japan for the year ended March 31, 2009 increased ¥453 million.
16

4. Country and regional segments other than Japan were previously categorized as “Other regions”, but from theprevious fiscal year, revenues from Asia accounted for more than 10% of the total, and the classification has
therefore been changed to “Asia”.
5. When restated according to the country and regional segment classification adopted during the fiscal year ended
March 31, 2009, the segment information for the fiscal year ended March 31, 2008 is as follows.
For the year ended March 31, 2008 (April 1, 2007 – March 31, 2008)
Millions of yen, rounded down
Elimination/
Consolidated
corporate

Japan

Asia

Other regions

Total

Sales to outside customers......................

445,816

43,512

29,999519,329-

519,329

Inter-segment sales and transfers ............

39,471

4,011

595

44,078(44,078)-

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

485,288

47,52430,595563,407(44,078)

519,329

Operating expenses ...............................

443,103

44,02528,856515,985(44,023)

471,962

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

42,185

3,498

1,738

47,422(55)

47,366

Assets ..................................................

560,31433,344

15,951

609,610(8,224)

601,386

c. Overseas sales
For the year ended March 31, 2010 (April 1, 2009 – March 31, 2010)
Millions of yen, rounded down
Asia

North and SouthAmerica

Other

Total

Overseas sales ...............................

131,441

27,182

8,042

166,666

Consolidated sales ..........................

-

-

-

384,528

Percentage of overseas sales toconsolidated sales .......................

34.2

7.1

2.1

43.3

For the year ended March 31, 2009 (April 1, 2008 – March 31, 2009)
Millions of yen, rounded down
Asia

North and SouthAmerica

Other

Total

Overseas sales ...............................

115,875

37,18910,228163,293

Consolidated sales ..........................

-

-

-

447,647

Percentage of overseas sales toconsolidated sales .......................

25.9

8.3

2.3

36.5

Notes:
1. The major countries or regions in the respective divisions are as follows:
Asia: Thailand, Malaysia, India, Indonesia, Korea, China, Taiwan, and Singapore
North and South America: U.S.A., Mexico, and Brazil
Other: Australia, New Zealand, Germany, Netherland, Italy, UK and South Africa

2. Overseas sales are based on the net sales of the Company and its consolidated subsidiaries in countries orregions other than Japan.

(7) Notes on Significant Change in Stockholders' Equity:
No applicable items.

17

5. Other information
The Tokyo Metropolitan Government issued MGC with an administrative order to pay a fine in order to facilitate
measures to prevent a public environmental hazard concomitant with dioxin soil pollution on land in Ota Ward,
Tokyo that was formerly owned by MGC. Following an appeal court decision issued in August 2008 that dismissed
MGC’s appeal against the fine, MGC has submitted its appeal to the Supreme Court.
MGC has allocated the necessary reserve for the fine paid to the Tokyo Metropolitan Government.

18