SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS
Results for the Fiscal Year 2014 (from April 1, 2014 to March 31, 2015)
MITSUBISHI GAS CHEMICAL COMPANY, INC.
Stock Code:

4182

URL:

http://www.mgc.co.jp

President:

Toshikiyo Kurai

May 11, 2015
First section, Tokyo Stock
Listed exchanges:
Exchange
Inquiries: Yoshihisa Kashima
General Manager
Corporate Communications
Division
Telephone: +81 3 3283-5041

Scheduled date of general shareholders' meeting: June 25, 2015
Scheduled date of filing of the financial report: June 25, 2015
Scheduled date of payment of dividend: June 8, 2015

1. Consolidated Financial Results for the Fiscal Year 2014(from April 1, 2014 to March 31, 2015)
1) Consolidated Operating Results
Percentage figures represent changes compared to the previous fiscal year

Millions of yen, rounded down

FY 2013

FY 2014(% change)

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

534,443
11,48830,804
14,971
33.03
5.0
4.8
2.1

(% change)-

Note: Comprehensive income: FY 2014: ¥72,383million [93.1%];
FY 2013: ¥37,492 million [Equity in earnings of affiliates: FY 2014: ¥28,929million;
FY 2013: ¥20,466million

529,570
14,99643,03444,381
98.26
12.9
5.9
2.8

- %]

2) Consolidated Financial Position

Millions of yen, rounded down

FY 2013

FY 2014

Total assets ............................................................................
Net assets ...............................................................................
Shareholders’ equity ratio (%).................................................
Net assets per share (¥) .........................................................
Note: Shareholders’ equity: FY 2014: ¥377,240million;

(0.9)
30.5
39.7
197.4

657,838
323,85847.5
691.26790,381442,44847.7
835.23

FY 2013: ¥312,226million

3) Consolidated Cash Flows

Millions of yen, rounded down

FY 2013
Cash flow from operating activities .........................................
Cash flow from investing activities ..........................................
Cash flow from financing activities ..................................
Cash and cash equivalents at end of period ......................

FY 2014
27,182(29,883)
7,124
37,31076,982(23,531)(25,005)
72,678

2. Dividends
FY 2013Interim 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 (%) ..............................................

FY 2015(Forecast)
8.00
8.00
16.00
24.9
-

FY 2014

6.00
6.00
12.00
5,420
36.3
1.8

7.00
7.00
14.00
6,323
13.2
1.8

3. Forecasts for the Fiscal Year 2015 (from April 1, 2015 to March 31, 2016)

Millions of yen, rounded
down

Percentage figures represent changes compared to the previous interim period or fiscal year

Six-month period

Full year(% change)

Sales ....................................................................................... 310,000
Operating income ................................................................
11,000Ordinary income ................................................................
15,000Net Income ............................................................................. 12,000
Earnings per share (¥)
26.57

1

15.7
74.4
(37.4)(44.2)(% change)

620,000
25,00037,00029,000
64.21

17.1
66.7
(14.0)(34.7)

4. Other Information
1) Transfer of important subsidiaries during the period: Yes(Transfers of certain subsidiaries resulting in changes in the scope of consolidation)2) Changes in accounting policies, changes in accounting estimate or restatement of corrections:
1. Changes in accounting policies following revisions to accounting standards: Yes
2. Changes other than 1: Yes
3. Changes in accounting estimates: None
4. Restatement of corrections: None
3) Number of shares outstanding (ordinary shares)

FY 2013

FY 2014

Number of shares issued at end of period(including treasury shares) .......................................................... 483,478,398
Number of treasury shares at end of period ................................
31,800,380
Average shares outstanding during period................................

483,478,398
31,819,177
451,670,027

451,694,282

Reference: Outline of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year 2014 (from April 1, 2014 to March 31, 2015)
1) Non-consolidated Operating Results
Percentage figures represent changes compared to the previous fiscal year

Millions of yen, rounded down

FY 2013

FY 2014(% change)

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

417,583
7,395
27,586
5,123
11.34
-

(% change)-

2) Non-consolidated Financial Position

385,2139,327
46,65542,857
94.89
-

(7.8)
26.1
69.1
736.4

Millions of yen, rounded down

FY 2013397,436
176,85344.5
391.55

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

FY 2014435,857
222,62151.1
492.90Note: Shareholders’ equity: FY 2014: ¥222,621million; FY 2013: ¥176,853 million

2. Non-consolidated Forecasts for the Fiscal Year 2015(from April 1, 2015 to March 31, 2016)
Percentage figures represent changes compared to the previous interims period or fiscal year
Millions of yen, rounded down

Six-month period

Full year(% change)

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

170,000
5,000
14,00014,00031.00(13.7)
18.6(29.1)(5.8)(% change)

330,000
11,00026,00025,00055.35(14.3)
17.9(44.3)(41.7)(NOTE)
1. These quarterly financial results are not subject to quarterly review procedures. At this time of disclosure of these financial results, the quarterly
financial statement review procedures based on the Financial Instrument and Exchange Law have not been completed.
2. Forecasts, etc., recorded in this document contain forward-looking statements that are based on management’s estimates, assumptions andprojections at the time of publication. A number of factors could cause actual results to differ materially from expectations.

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

(1) Consolidated Operating Results
Results for this period
Starting in fiscal 2014, sales of MGC and its domestic consolidated subsidiaries are no longer recorded
primarily on a delivery basis, but on an inspection basis. The above change in the accounting policy isapplied retroactively in making comparisons with the consolidated financial figures posted for the same
period and at the end of the previous fiscal year.
In the consolidated fiscal year under review (fiscal 2014), the Japanese economy experienced slow
recovery overall. Despite the backlash from the last-minute surge in demand before the rise in
consumption tax, there were positive developments such as improvements in corporate earnings andemployment conditions.
The MGC Group recorded a decline in revenue compared with the previous fiscal year. While engineering
plastics and electronic chemicals achieved higher sales volumes, the business restructuring program
resulted in lower sales volumes for general-purpose aromatic chemicals such as purified isophthalic acid.
Group operating income grew regardless of declines in the profitability of electronic materials,
general-purpose aromatic chemicals, and polycarbonate sheets and films. Major positive contributions camefrom improvements in the profitability of export products (thanks to the weaker yen), the earnings ofpolycarbonates, and the sales volume of electronic chemicals.
Group ordinary income rose from the previous fiscal year. In addition to a higher operating income, equity
in earnings of overseas methanol producing companies grew due to the price hike in the beginning of the
fiscal year, the weaker yen, and improved operation at the production site in Brunei.
The Group achieved a significant improvement in net income in fiscal 2014. In addition to a lower
impairment loss, positive contributions included a gain on sales of investment securities and a gain on step
acquisition, which was generated by converting JSP into a consolidated subsidiary.
In fiscal 2014, the MGC Group achieved ¥529.5 billion in consolidated net sales, a decline of ¥4.8 billion(0.9%) from the previous year. Consolidated operating income was ¥14.9 billion, an increase of ¥3.5 billion(30.5%). Equity in earnings of affiliates was ¥28.9 billion, an increase of ¥8.4 billion (41.4%). Consolidated
ordinary income grew by ¥12.2 billion (39.7%) to ¥43.0 billion. The Group achieved a consolidated net
income of ¥44.3 billion, growth of ¥29.4 billion (197.4%).
Results by business segment
Natural Gas Chemicals Company
The methanol business achieved prior-year-level net sales. Despite a higher sales volume, the businesssuffered from lower sales prices due to reductions in market prices.
Methanol and ammonia-based chemicals recorded higher earnings. The higher fixed cost recorded
primarily due to the turnaround of the ammonia producing equipment was more than compensated for by the
improved profitability of exports due to the weaker yen and higher sales volumes of high-performance
products.
Crude oil and other energy sources declined in earnings due to lower crude oil prices.
In fiscal 2014, the Natural Gas Chemicals Company achieved consolidated net sales of ¥184.8 billion, a drop3

of ¥0.4 billion (0.2%) from the previous year and an operating income of ¥2.7 billion, an increase of ¥0.0
billion (1.2%). An equity in earnings of affiliates of ¥26.4 billion, coming primarily from overseas methanol
producing companies, resulted in an ordinary income of ¥28.2 billion, up ¥9.8 billion (53.1%).
Aromatic Chemicals Company
Specialty aromatic chemical products posted higher earnings compared with the previous year. This wasprimarily due to higher sales volumes achieved by meta-xylenediamine and aromatic aldehydes, the higher
profitability of export products resulting from the weaker yen, and withdrawal from the pyromellitic
dianhydride operations.
General-purpose aromatic chemical products suffered a substantial decline in net sales from the previous
year. This was because business contraction led to a reduction in sales volumes of purified isophthalic acidand other products. Earnings were reduced, one of the reasons being that the phthalic anhydride and purified
terephthalic acid operations found themselves in more difficult business environments.
In fiscal 2014, the Aromatic Chemicals Company achieved consolidated net sales of ¥121.1 billion, a drop of¥18.3 billion (13.2%) from the previous year and an operating income of ¥3.0 billion, an increase of ¥0.1
billion (4.0%). This Company suffered an ordinary income of ¥1.0 billion, a drop of ¥1.1 billion (51.9%),
primarily due to a loss in equity in earnings of affiliates, which was caused by quitting the purified
terephthalic acid operations.
Specialty Chemicals Company
Inorganic chemicals suffered a decline in earnings because increases in raw material and fuel prices madethese products less profitable.
Electronic chemicals achieved growth in both revenue and earnings. This positive trend was due to strong
demand for super-pure hydrogen peroxide and hybrid chemicals for semiconductors, leading to increases insales volumes.
The engineering plastics business posted a year-on-year increase in net sales due to growth in the sales
volumes of polycarbonates and polyacetal. A further positive contribution came from polycarbonates, whose
operating results improved due to a reduction in depreciation expenses which resulted from the impairment
loss recognized in the previous fiscal year, successful work to improve profitability, and higher sales volumes
for highly specialized products.
Polycarbonate sheets and films suffered losses in both revenue and earnings. This is because of lower
sales volumes of films for use in flat panel displays and hard-coated sheets.
In fiscal 2014, the Specialty Chemicals Company posted consolidated net sales of ¥164.6 billion, an
increase of ¥11.3 billion (7.4%) from the previous year and an operating income of ¥8.2 billion, growth of ¥4.3
billion (109.2%). Due to ¥1.7 billion equity in earnings of affiliates, the Company achieved an ordinary incomeof ¥9.1 billion, an increase of ¥5.2 billion (137.0%).
Information & Advanced Materials Company
Electronic materials grew in revenue, but suffered a decline in earnings. BT materials for semiconductor
packaging had a strong showing in terms of sales volumes, notably in smartphone-related applications. The
lower profitability was due to an increase in costs resulting from the start of commercial operation of thesecond site in Thailand.

4Oxygen absorbers such as AGELESS® posted increases in both revenue and earnings. While the impactof the consumption tax hike and other negative factors drove down domestic sales slightly, products foroverseas markets achieved higher sales volumes. A further contribution came from the improved profitabilityof exports thanks to the weaker yen.
In the full-year period under review, the Information & Advanced Materials Company achieved consolidated
net sales of ¥58.2 billion, an increase of ¥2.7 billion (5.0%), an operating income of ¥3.8 billion, a decline of¥0.4 billion (11.4%), and an ordinary income of ¥4.0 billion, a drop of ¥0.7 billion (16.1%).
Other
In the fiscal year ending March 31, 2015, the Other business segment achieved consolidated net sales of¥0.6 billion, a year-on-year decline of ¥0.1 billion (21.0%). Operating income fell by ¥0.0 billion (17.2%) to¥0.2 billion, and ordinary income declined by ¥0.4 billion (25.7%) to ¥1.4 billion.
Consolidated forecasts for the fiscal year 2015
Despite the expectations for continued recovery of the Japanese economy, along with a business boost fromfalling crude oil prices, the world economy still has unstable factors such as developments in monetary easing,
the slowdown of the Chinese economy, and fiscal uncertainties facing some oil-producing countries due todeclining crude oil prices.
In this difficult environment, MGC introduced the new Medium-Term Management Plan "MGC Advance2017" in April 2015. Upholding the new Group vision of "Creating values to share with society," the MGC Groupwill work as one to conduct business in accordance with ourbasic policies to strengthen its earning power evenfurther.
In fiscal 2015, the Group expects to achieve higher operating income than in fiscal 2014. Despite an
expected decline in the sales volume of electronic chemicals, there will be positive factors such as theconversion of JSP into a consolidated subsidiary, the improved profitability of exports thanks to the weaker yen,
and increases in the margins of aromatic chemicals due to lower raw material and fuel prices. Ordinary income
and net income are expected to be lower than in fiscal 2014. A negative contribution will come from a reduction
in equity in earnings of affiliates due to lower methanol market prices. A further indirect impact is that thecorresponding figures for fiscal 2014 include extraordinary incomes.
The Group anticipates to achieve consolidated net sales of ¥620.0 billion, an operating income of ¥25.0
billion, and an ordinary income of ¥37.0 billion. In terms of net income attributable to the parent company, theGroup will post ¥29.0 billion. In non-consolidated terms, MGC forecasts net sales of ¥330.0 billion, an
operating income of ¥11.0 billion, an ordinary income of ¥26.0 billion, and a net income of ¥25.0 billion.
These performance forecasts assume exchange rates of ¥115=$1 and ¥130=€1.

(2) Consolidated financial position
Assets, liabilities and net assets
As of March 31, 2015, total consolidated assets were ¥790.3 billion, ¥132.5 billion higher than at the endof the previous fiscal year. This significant increase was primarily due to the conversion of JSP, previously
an equity method affiliate, into a consolidated subsidiary.
Current assets increased by ¥84.5 billion to ¥372.1 billion, primarily due to increases in trade notes andaccounts receivable as well as in cash and deposits.

5Noncurrent assets rose by ¥48.0 billion to ¥418.2 billion, primarily due to increases in property, plant, andequipment as well as in goodwill.
Total liabilities increased by ¥33.9 billion to ¥367.9 billion. Current liabilities rose by ¥46.1 billion, a major
reason being an increase in short-term loans payable. Noncurrent liabilities fell by ¥12.2 billion, primarily
due to reductions in long-term loans payable and liability for retirement benefit.
Net assets increased by ¥98.5 billion to ¥422.4 billion. In addition to substantial growth in net income,positive contributions included increases in foreign currency translation adjustment, valuation difference on
available-for-sale securities, and minority interests.
As of March 31, 2015, the shareholders’ equity ratio was therefore 47.7% (March 31, 2014: 47.5%). Net
assets per share at the end of the fiscal year were ¥835.23, compared with ¥691.26 one year earlier.
Consolidated cash flows
As of March 31, 2015, total cash and cash equivalents were ¥72.6 billion, ¥35.3 billion higher than at theend of the previous fiscal year.
1) Operating activity cash flow
Net cash provided by operating activities increased by ¥49.7 billion from the previous year to ¥76.9 billion.
This was primarily due to an increase in income before income taxes and minority interests.
2) Investing activity cash flow
Net cash outflow from investing activities was ¥23.5 billion, ¥6.3 billion less than the outflow for theprevious year. This was primarily due to a decline in expenses caused by the acquisition of noncurrent
assets and an increase in gain on sales of investment securities.
3) Financing activity cash flow
Net cash outflow from financing activity was ¥25.0 billion, an increase of ¥32.1 billion from the previous year.
This was primarily due to a lower inflow from long-term loans payable.

(3) Dividend policy, payments and forecasts
MGC views returns to shareholders as a key Group management issue. The Company makes acomprehensive assessment of trends in business performance, capital expenditure plans, financial positionand other factors from a medium- to long-term point of view, aiming to optimally balance the returning of
profits to shareholders via stable dividends with the retention of sufficient earnings to implement measures
to increase future enterprise value. The Company therefore determines dividends using a specific method
combining a performance-linked portion with a stable portion. 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 ¥7.0 per share, as previously
forecast. In combination with the interim dividend of ¥7.0 per share already paid, this represents an annual
dividend of ¥14.0 per share.
For the year ending March 31, 2016 the Company plans an interim dividend of ¥8.0 per share and a
year-end dividend of ¥8.0 per share6

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(In ¥ million, rounded down)
FY2013
FY2014(As of March 31, 2014) (As of March 31, 2015)
ASSETS
Current assets
Cash and deposits .....................................................
Trade notes and accounts receivable ........................
Short-term investments securities .............................
Merchandise and finished goods ...............................
Work in progress .......................................................
Raw materials and supplies .......................................
Other ..........................................................................
Allowance for doubtful accounts ................................
Total current assets .........................................
Noncurrent assets
Property, plant and equipment
Buildings and structures, net ...................................
Machinery, equipment and vehicles, net .................
Other, net ................................................................
Total property, plant and equipment ....................
Intangible assets
Goodwill ...................................................................
Other ........................................................................
Total intangible assets ........................................
Investments and other assets
Investment securities ...............................................
Other ........................................................................
Allowance for doubtful accounts..............................
Total investments and other assets .....................
Total noncurrent assets .....................................
Total assets ..................................................................

7

38,772
127,8172,130
61,641
10,31927,232
20,527(798)
287,642

62,327
152,711
18,13765,476
12,70732,17332,611(3,978)372,166

59,27971,63760,395
191,31175,83687,24972,838
235,923

2
3,166
3,169

4,836
4,376
9,214

167,296
8,499(81)
175,714370,195
657,838

164,251
8,935(110)
173,077
418,215790,381

Consolidated Balance Sheets (contd.)(In ¥ million, rounded down)
FY2013
FY2014(As of March 31, 2014) (As of March 31, 2015)
LIABILITIESCurrent Liabilities
Trade notes and accounts payable .............................
Short-term loans payable ............................................
Income taxes payable..................................................
Provision ......................................................................
Other ............................................................................
Total current liabilities ............................................
Noncurrent liabilities
Bonds payable .............................................................
Long –term loans payable ...........................................
Other provision ............................................................
Defined benefit liability.................................................
Asset retirement obligations ........................................
Other ............................................................................
Total noncurrent liabilities ......................................
Total liabilities .....................................................
NET ASSETS
Shareholders’ equity
Capital stock ................................................................
Capital surplus .............................................................
Retained earnings .......................................................
Treasury stock .............................................................
Total shareholders’ equity ......................................
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities .....................................................................
Revaluation reserve for land........................................
Foreign currency translation adjustment .....................
Remeasurements of defined benefit plans ..................
Total accumulated other comprehensive income ........
Minority interests .....................................................
Total net assets ..................................................
Total liabilities and net assets ............................

8

71,66575,8591,570
5,015
24,785
178,896

79,323
104,155
2,148
5,531
33,905225,068

25,00083,481
1,220
9,232
3,582
32,563155,081333,979

25,00069,932
2,777
5,586
3,685
35,878142,864
367,932

41,97035,595
239,831(8,119)309,277

41,97035,595278,910(8,131)
348,344

11,384

20,612

206(7,305)(1,337)
2,949
11,632323,858
657,838

217
4,926
3,139
28,89645,207424,488790,381(2) Consolidated Statements of Income(In ¥ million, rounded down)
FY 2014

FY 2013(Apr1, 2013 – Mar31, 2014)

Net sales ......................................................................
Cost of sales .............................................................
Gross profit ................................................................
Selling, general and administrative expenses..........
Operating income .....................................................
Non-operating income
Interest income .........................................................
Dividend income .......................................................
Equity in earnings of affiliates...................................
Other .........................................................................
Total non-operating income ..............................
Non-operating expenses
Interest expense .......................................................
Personnel expenses for seconded employees .........
Loss on disposal of noncurrent assets .....................
Other .........................................................................
Total non-operating expenses...............................
Ordinary income ....................................................... ...
Extraordinary income
Gain on sales of investment securities .....................
Gain on step acquisitions ..........................................
Subsidy income .........................................................
Compensation income ..............................................
Gain on rights and interests ......................................
Reversal of provision for business structure
improvement .............................................................
Gain on sales of noncurrent assets ..........................
Gain on bargain purchase ........................................
Insurance income......................................................
Loss (gain) on liquidation of subsidiaries andassociates ................................................................
Total extraordinary income ................................
Extraordinary losses
Loss on reduction of noncurrent assets ...................
Impairment loss ........................................................
Business structure improvement expenses..............
Amortization of goodwill ............................................
Loss on disposal of noncurrent assets .....................
Loss on contract cancellation ...................................
Provision for environmental measures .....................
Loss on abandonment of inventories .......................
Environmental improvement expensive....................
Compensation for products .......................................
Loss on fire accident .................................................

9(Apr1, 2014 – Mar31, 2015)

534,443
460,293
74,14962,661
11,488529,570
452,360
77,21062,213
14,996200
1,735
20,466
3,940
26,342226
2,018
28,9292,974
34,149

2,995
1,466
750
1,812
7,025
30,804

2,440
1,312
888
1,468
6,110
43,034

266
-

2,851
2,087
1,608
1,055
792

-

430

361
238

355
198
-

183

-

1,050

9,380

11,648
1,526
448
339
119

1,608
1,123
1,003
476
385
374
247
144
-

Total extraordinary losses .................................
Income before income taxes and minority interests
Income taxes, etc. ................................................................
Net income or loss before minority interests..................
Minority interests in income .........................................
Net income or loss .......................................................

14,082
17,772
3,070
14,702(219)
14,921

5,363
47,051
1,611
45,4401,059
44,381(Consolidated Statements of Comprehensive Income)

FY 2013(In ¥ million, rounded down)
FY 2014(Apr1, 2013 – Mar31, 2014)(Apr1, 2014 – Mar31, 2015)

14,702
Income before minority Interests ................................
Other comprehensive Income
Valuation difference on available-for-sale
2,720
securities.............................................................................................
Foreign currency statements translation
5,504
adjustment ................................................................
Remeasurements of defined benefit plans...............
Share of other comprehensive income of
14,565
associates accounted for using equity method ........
22,790Total other comprehensive Income ................................
37,492Comprehensive Income ..........................................

26,94372,383

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

70,3282,055

1036,705786

45,440
9,302
4,426
4,066
9,147

(3) Consolidated Statements of Changes in Net Assets
FY 2013(In ¥ million, rounded down)
FY 2014(Apr1, 2013 – Mar31, 2014) (Apr1, 2014 – Mar31, 2015)

Shareholders’ equity
Capital stock
Balance at the beginning of current period .............
Balance at the end of current period.......................
Capital surplus
Balance at the beginning of current period .............
Balance at the end of current period.......................
Retained earnings
Balance at the beginning of current period .............
Changes of items during the period
Cumulative effects of changes in accounting
policies .................................................................

Dividends from surplus ........................................
Net income ..........................................................
Increase (decrease) in cash and cash
equivalents resulting from change in fiscal
period of consolidated subsidiaries.................
Increase (decrease) in cash and cash
equivalents resulting from change in fiscal
period of affiliates ............................................
Change of scope of consolidation.......................
Change of scope of equity method .....................
Total changes of items during the period ............
Balance at the end of current period.......................
Treasury stock
Balance at the beginning of current period .............
Changes of items during the period
Purchase of treasury stock ..................................
Disposal of treasury stock ...................................
Total changes of items during the period ............
Balance at the end of current period.......................
Total shareholders’ equity
Balance at the beginning of current period .............
Changes of items during the period
Cumulative effects of changes in accounting
policies .................................................................

Dividends from surplus ........................................
Net income ..........................................................
Increase (decrease) in cash and cash
equivalents resulting from change in fiscal
period of consolidated subsidiaries.................
Increase (decrease) in cash and cash
equivalents resulting from change in fiscal
period of affiliates ............................................
Change of scope of consolidation.......................
Change of scope of equity method .....................
Purchase of treasury stock ..................................
Disposal of treasury stock ...................................
Total changes of items during the period ............

11

41,97041,97041,97041,97035,59535,59535,59535,595

231,882

231,831

(230)

(52)

(5,420)14,921(5,871)
44,381(1,322)

160

-

546

8,178
239,831(79)(6)
39,131
278,910(8,094)(24)(24)(8,119)(8,119)(12)(12)(8,131)

301,353309,277

(230)

(52)

(5,420)14,921(5,871)
44,381(1,322)

160

-

546

(24)
8,154

(79)
(6)
(12)
39,119

309,277

Balance at the end of current period.......................

348,344

Consolidated Statements of Changes in Net Assets (contd.)
FY 2013(In ¥ million, rounded down)
FY 2014(Apr1, 2013 – Mar31, 2014) (Apr1, 2014 – Mar31, 2015)

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Balance at the beginning of current period .............
Changes of items during the period
Net changes of items other than shareholders’equity ........................................................................
Total changes of items during the period ................
Balance at the end of current period.......................
Deferred gains or losses on hedges
Balance at the beginning of current period .............
Changes of items during the period
Net changes of items other than shareholders’equity ........................................................................
Changes of items during the period ........................
Balance at the end of current period.......................
Revaluation reserve of land
Balance at the beginning of current period .............
Changes of items during the period ........................
Net changes of items other than shareholders’equity .....................................................................
Total changes of items during the period ...............
Balance at the end of current period.......................
Foreign currency translation adjustments
Balance at the beginning of current period .............
Changes of items during the period
Net changes of items other than shareholders’equity .....................................................................
Total changes of items during the period ............
Balance at the end of current period.......................
Remeasurements of defined benefit plans
Balance at the beginning of current period .............
Changes of items during the period
Net changes of items other than shareholders’equity............................................................................
Total
changes of items during the period ................
Balance at the end of current period.......................
Total accumulated other comprehensive income
Balance at the beginning of current period .............
Changes of items during the period
Net changes of items other than shareholders’equity............................................................................
Total
changes of items during the period ................
Balance at the end of current period.......................
Minority interests
Balance at the beginning of current period ................
Changes of items during the period
Net changes of items other than shareholders’equity ..........................................................................
Total changes of items during the period ...............
Balance at the end of current period ..........................
Total net assets
Balance at the beginning of current period ................

12

8,607

11,384

2,777

9,227

2,777
11,384

9,227
20,612

-

-

-

-

-

-

206

206

-

10

206

217

(26,311)(7,305)19,006

12,231

19,006(7,305)

12,231
4,926(1,337)(1,337)(1,337)

4,477
4,477
3,139

(17,497)

2,949

20,446
20,446
2,949

25,94625,94628,896

11,039

11,632592

33,575592
11,63233,57545,207

294,895

323,858

Changes of items during the period
Cumulative effects of changes in accounting policies .

Dividends from surplus ...........................................
Net income ..............................................................
Change of scope of consolidation............................
Change of scope of equity method ..........................
Increase (decrease) in cash and cash equivalents
resulting from change in fiscal period of
consolidated subsidiaries
Increase (decrease) in cash and cash equivalents
resulting from change in fiscal period of affiliates
Change of scope of consolidation............................
Change of scope of equity method ..........................
Purchase of treasury stock .....................................
Disposal of treasury stock .......................................
Net changes of items other than shareholders’equity .....................................................................
Total changes of items during the period ...............
Balance at the end of current period ..........................

13

(230)
(5,420)14,971-(52)(5,871)
44,381-(1,322)

160

-

546

(24)
-

(79)
(6)
(12)
-

21,03959,522

29,193323,858

98,641
422,448

(4) Consolidated Statements of Cash Flows(In ¥ million, rounded down)
FY 2014
FY 2013(Apr1, 2013 – Mar31, 2014) (Apr1, 2014 – Mar31, 2015)

Net cash provided by (used in) operating activities
17,772
Income before income taxes and minority interests..........
23,528Depreciation and amortization...........................................
287
Loss (gain) on disposal of noncurrent assets ...................
(168)
Amortization of goodwill.....................................................
Gain on bargain purchase .................................................
(20,466)
Equity in (earnings) losses of affiliates ..............................
11,648
Impairment losses .............................................................
Loss (gain) on liquidation of subsidiaries and(185)
associates ..........................................................................
(281)
Insurance income ..............................................................
Gain on rights and interests ..............................................
119
Loss on fire accident..........................................................
1,526
Business structure improvement expenses ......................
Reversal of provision for business structure
improvement ......................................................................
448
Environment improvement expenses ................................
Loss on contract cancellation
Loss on abandonment of inventories ................................
Gain on step acquisitions ..................................................
Subsidy income ................................................................
Loss on reduction of noncurrent assets ............................
Provision for environmental measures ..............................
Decrease (increase) in Allowance for doubtful
462
accounts ............................................................................
346
Increase (decrease) in net defined benefit liability ............
(1,936)
Interest and dividends income...........................................
2,995
Interest expenses ..............................................................
Loss (gain) on sales of short-term and long-term(221)
investment securities .........................................................
Loss (gain) on valuation of short-term and23
long-term investment securities.............................................................
Decrease (increase) in notes and accounts
2,320
receivable - trade ...............................................................
(6,606)
Decrease (increase) in inventories ................................
Increase (decrease) in notes and accounts payable(11,048)- trade ................................................................................
95
Increase (decrease) in accrued consumption taxes.
Increase (decrease) in provision for directors’
retirement benefits .............................................................
(49)(8,298)Other, net ...........................................................................
12,312
Subtotal .......................................................................
1,926
Interest and dividends income received ............................
Proceeds from dividends income from affiliates
18,798accounted for by equity method ........................................
(3,112)
Interest expenses paid ......................................................
(3,024)
Income taxes (paid) refund ................................................
281
Proceeds from insurance income ......................................
Net cash provided by (used in) operating
27,182
activities ..............................................................

14

47,051
23,770
792
476
(198)
(28,929)
1,123
(7)
(792)
1,003
(430)
374
144
(2,087)(1,608)
1,608
247
24
258
(2,245)2,440(3,009)
10,162
5,365(8,326)
1,166
48
(136)
48,286
2,192
34,773(2,520)(5,756)
7
76,982

Consolidated Statements of Cash Flows (contd.)
FY 2013(In ¥ million, rounded down)
FY 2014(Apr1, 2013 – Mar31, 2014) (Apr1, 2014 – Mar31, 2015)

Net cash provided by (used in) investing activities
Purchase of short-term investment securities ...................
Proceeds from sales of short-term investment
securities ............................................................................
Purchase of noncurrent assets..........................................
Proceeds from sales of noncurrent assets ........................
Purchase of investment securities.....................................
Proceeds from sales of investment securities ...................
Payments of loans receivable ...........................................
Collection of loans receivable ............................................
Other, net ...........................................................................
Net cash provided by (used in) investing activities ......
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loan payable .........
Proceeds from long-term loans payable ...........................
Payment of long-term loans payable................................
Proceeds from issuance of bonds .....................................
Purchase of treasury stock ................................................
Cash dividends paid ..........................................................
Cash dividends paid to minority shareholders ..................
Other, net ...........................................................................
Net cash provided by (used in) financing activities ......
Effect of exchange rate change on cash and cash
equivalents ................................................................
Net increase (decrease) in cash and cash
equivalents ................................................................
Cash and cash equivalents at beginning of period .......
Increase (decrease) in cash and cash equivalents
resulting from change of scope of consolidation.....
Increase (decrease) in cash and cash equivalents
resulting from change in fiscal period of
consolidated subsidiaries ........................................
Cash and cash equivalents at end of period .........

15

-

-

22

114

(29,403)
997
(396)
649
(3)
249
(1,998)(29,883)(24,486)
2,657(10,135)
6,228
(228)
1,556
(549)
(23,531)

1,514
27,835(24,537)9,952(35)(5,420)(474)(1,710)7,124(4,705)
4,214(14,351)(12)(5,871)(590)(3,687)(25,005)

5,548

6,549

9,972

34,995

26,90737,310

-

-

430

373

37,31072,678(5) Segment information
1. Segment overview
Mitsubishi Gas Chemical employs an in-house company system, which was adopted to clarify the
responsibilities of each business and improve efficiency. Each company conducts its business according toan independent strategy formulated for its products and services.
This structure makes it possible to obtain separate financial information for each segment. Financial
information is presented for the four companies subjected to periodical examinations that are conducted by
the Board of Directors in order to optimize the allocation of management resources and evaluation of
performance: Natural Gas Chemicals, Aromatic Chemicals, Specialty Chemicals, and Information &Advanced Materials.
The Natural Gas Chemicals Company manufactures and sells products such as methanol, ammonia,
amines, methacrylate derivatives, polyhydric alcohol, enzymes, coenzymes, and crude oil.
The Aromatic Chemicals Company manufactures and sells xylene isomers and their derivatives andfoam.
The Specialty Chemicals Company manufactures and sells products such as hydrogen peroxide andother inorganic chemicals for industrial use, electronic chemicals, and engineering plastics.
The Information & Advanced Materials Company manufactures and sells products such as materials forprinted circuit boards, printed circuit boards, and oxygen absorber such as AGELESS®.
2. Business segments
FY 2014 (from April 1, 2014 to March 31, 2015)(In ¥ million, rounded down)
Natural gas
chemicals

Aromatic
chemicals

Specialty
chemicals

Information
and advanced
materials

Sales to outside customers ................................
184,873

121,126

164,684

58,241

642-

529,570

Inter-segment sales ................................ 12,745

2,214

1,377

0

110

(16,448)-

Other

Adjustment

Consolidated

Net sales

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

197,619

123,340

166,062

58,242753( 16,448 )

529,570

Operating income (loss) .....

28,294

1,026

9,166

4,066

1,412

( 930)

43,034

Identifiable assets by businesssegment .............................

203,878

211,422

212,149

65,356

43,34854,225790,381

Depreciation .......................

6,916

9,292

3,316

8

326

23,770

Amortization of goodwill ........

-

3,909
-

0

-

-

-

0

Interest income ...................

30

23

164

52

2

(45)

226

Other items

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

1,145

703

1,107

233

14

(763)

2,440

Equity in earnings of affiliates

26,418(1,009)

1,776

-

1,744

-

28,929Gain on bargain purchase.....

137

29

0

0

30

-

198

Amortization of goodwill ........

-

-

476

-

-

-

476

Investment to equity method affiliates ................................
63,906
611
Increase of property, plant and
5,766
4,067
equipment and intangible assets ................................

12,562

-

2,992

4,466

84,630

7,639

4,397

7

348

22,22616

FY 2013 (from April 1, 2013 to March 31, 2014)(In ¥ million, rounded down)
Natural gas
chemicals

Aromatic
chemicals

Specialty
chemicals

Information
and advanced
materials

Sales to outside customers ................................
185,307

139,476

153,377

55,467813-

534,44395( 12,882 )

-

Other

Adjustment

Consolidated

Net salesInter-segment sales ................................

9,568

2,040

1,176

0

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

194,876

141,516

154,554

56,468908( 12,882 )

534,443

Operating income (loss) .....

18,444

2,133

3,867

4,845

1,901

( 392 )

30,804

Identifiable assets by businesssegment .............................

218,018

101,925

194,995

64,202

55,832

22,863657,838

6,334

4,127

9,550

3,123

10

381

23,528Other items
Depreciation .......................

Amortization of goodwill ........ ................................
-

-

24

1

-

(26 )

-

Amortization of negative goodwill ................................
( 13 )( 11 )( 169 )--

26

( 168 )

Interest income ...................

79

20

156

46

22

( 124 )

200

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

1,236

811

1,496

132

4

(685)

2,995

Equity in earnings of affiliates

16,937

-

1,396

-

2,132

-

20,466

Investment to equity method affiliates ................................
66,272
1,514
Increase of property, plant and
4,523
2,377
equipment and intangible assets ................................

11,657-28,974( 239 )

108,179

11,237

6,691

2

577

25,40917

SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS (FY 2014)(hundred million of yen, rounded down）

FY 2013

Net sales

FY 2014

FY 2015

ChangeChange(%)(Forecast)

5,344

5,295

(48)

(0.9)%

6,200

Natural gas chemicals

1,948

1,976

27

1.4%

1,854

Aromatic chemicals

1,415

1,233

(181)

(12.8)%

2,156

Specialty chemicals

1,545

1,660

115

7.4%

1,749

Information and advanced materials

554

582

27

5.0%

601

Other and Adjustment

(119)

(156)

(37)

－

(161)

114

149

35

30.5%

250

Natural gas chemicals

27

27

0

1.2%

41

Aromatic chemicals

28

30

1

4.0%

123

Specialty chemicals

39

82

43

109.2%

67

Information and advanced materials

42

38

(4)

(11.4)%

46

Other and Adjustment

(23)

(28)

(4)

－

(29)

Non‐ operating profit (loss)

193

280

87

45.2%

120

Ordinary income (loss)

308

430

122

39.7%

370

Natural gas chemicals

184

282

98

53.4%

151

Aromatic chemicals

21

10

(11)

(51.9)%

106

Specialty chemicals

38

91

52

137.0%

80

Information and advanced materials

48

40

(7)

(16.1)%

46

Other and Adjustment

15

4

(10)

(68.1)%(15)

Extraordinary income (loss)

(130)

40

170

－

( 20)

Income before income taxes and minority interests

177

470

292

164.7%

350

Net income

149

443

294

197.4%

290

Net income (loss) per share (¥)

33.03

98.26

－

64.21

Annual dividend per share (¥)

12.00

14.00

－

16.00

Equity in earnings of affiliates

204

289

84

41.4%

150

Income (expenses) on financing activities

(10)

(1)

8

－

－

Foreign currency statements translation adjustment

(3)

5

8

－

－

Other

2

(12)

(15)

－

(30)

193

280

87

45.2%

120

Operating income (loss)※Consolidated subsidiaries: 76 , Affiliates : 13 (As of end of March,2015)

Non‐ operating profit (loss)

Total ：Non‐operating profit (loss)

18

Extraordinary income (loss)
Gain on sales of investment securities

2

28

25

90.7%

Gain on step acquisitions

20

20

－

Subsidy income

16

16

－

Compensation income

10

10

－

Gain on rights and interests

7

7

－

Reversal of provision for business structure improvement

4

4

－

3

(0)

(1.8)%

1

1－

Gain on sales of noncurrent assets

3Gain on bargain purchase
Insurance income

2

(2)

－

Loss (gain) on liquidation of subsidiaries and associates

1

(1)

－

(16)

(16)

－

Loss on reduction of noncurrent assets
Impairment loss

(116)

(11)

105

－

Business structure improvement expenses

(15)

(10)

5

－

Amortization of goodwill

(4)

(4)

－

Loss on disposal of noncurrent assets

(3)

(3)

－

Loss on contract cancellation

(3)

(3)

－

Provision for environmental measures

(2)

(2)

－

Loss on abandonment of inventories

(1)

(1)

－

Environmental improvement expensive

(4)

4

－

Compensation for products

(3)

3

－

Loss on fire accident

(1)

1

－

170

－

Total ：Extraordinary income (loss)

(130)

40

Balance Sheets
FY 2013

FY 2014

ChangeCurrent assets

2,876

3,721

845

Property, plant and equipment, Intangible assets

1,944

2,451

506

Investments and other assets

1,757

1,730

(26)

Total assets

6,578

7,903

1,325

Interest-bearing liabilities

2,044

2,156

111

Other liabilities

1,294

1,523

228

Total liabilities

3,339

3,679

339

Shareholders’ equity

3,092

3,483

390

Accumulated other comprehensive income

29

288

259

Minority interests

116

452

335

Total net assets

3,238

4,224

985

Total liabilities and net assets

6,578

7,903

1,325

19

Cash FlowsFY 2013

FY 2014

ChangeNet cash provided by (used in) operating activities

271

769

497

Net cash provided by (used in) investing activities

(298)

(235)

63

Net cash provided by (used in) financing activities

71

(250)

(321)

Cash and cash equivalents at end of period

373

726

353

Various index
FY2011FY2012FY2013

FY2014FY2015(Forecast)Investments (Full year)(first half)

424
339

309
243

254
138

222
103

410
200

Depreciation and amortization (Full year)(first half)
R&D expenditures (Full year)(first half)
Staff

277
205

230
167

235
114

237
115

280
140

174
132

153
115

161
80

168
80

190
95

5,216

5,323

5,445

8,254

8,424

ROA

4.5%

4.6%

4.8%

5.9%

4.7%

ROE
Annual dividend (Full year)(first half)
Exchange rate (average)
Apr-Sep
Oct-MarMethanol market(Assumed Asian average spot price)
Jan-JuneJuly-Dec

4.4%(2.8%)

5.0%

12.9%

7.5%

12.0
6.0

12.0
6.0

12.0
6.0

14.0
7.0

16.0
8.0

¥80/$

¥79/$

¥99/$

¥103/$¥115/$

¥78/$

¥87/$

¥102/$¥117/$¥115/$$349/MT$385/MT$375/MT$432/MT$305/MT$385/MT$364/MT$449/MT$358/MT$305/MT

20