SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS
Results for the First Quarter of Fiscal Year 2013
(April 1 – June 30, 2013)

August 1, 2013

MITSUBISHI GAS CHEMICAL COMPANY, INC.
Listed exchanges:

First section of the Tokyo Stock Exchange

Stock Code:

4182

URL:

http://www.mgc.co.jp

President:

Toshikiyo Kurai

Inquiries:

Motoyasu Kitagawa
General Manager, Corporate Communications Division
Tel: +81-3-3283-5041

Scheduled date of filing of the quarterly financial report:
Scheduled date of payment of dividend:

August 8, 2013－

1. Summary of Consolidated Results for the First Quarter of Fiscal Year 2013
(April 1, 2013– June 30, 2013)
1) Operating results
Millions of yen, rounded down
Percentage figures denote change compared to equivalent period of previous year

April 1 – June 30, 2013

April 1 – June 30, 2012

Change %Net sales
Operating income (loss)
Ordinary income (loss)
Net income (loss)
Net income (loss) per share (¥)
Fully diluted net income (loss) per share (¥)

130,138、、
6,848
14,085
11,770
26.06
-

12.7
512.7
166.8
181.0
-

Change %115,433
1,117
5,280
4,188
9.27
-

0.1
(79.9)(47.6)(40.6)-(Note) Comprehensive income: first quarter of FY 2013：¥22,030 million [253.2%] ; first quarter of FY 2012：¥6,236 million [(28.9%)]

2) Financial position
Millions of yen, rounded down

As of June 30, 2013
642,881
312,506
46.8

Total assets
Net assets
Equity ratio (%)

As of March 31, 2013
613,908
294,895
46.2(Note) Shareholders’ equity as of June 30, 2013: ¥300,905million; as of March 31, 2013: ¥283,855million

2. Cash Dividends
FY 20136.00 (Forecast)
6.00 (Forecast)
12.00 (Forecast)Interim dividend per share (¥)
Year-end dividend per share (¥)
Annual dividend per share (¥)

FY 2012
6.00
6.00
12.00

(Note) Revision of cash dividend forecast during this period: None

3. Consolidated Business Forecasts for Fiscal Year 2013
(April 1, 2013 – March 31, 2014)
Millions of yen, rounded down
Percentage figures denote change compared to equivalent period of previous year

Six-month period

Full year

Change %Net sales
Operating income (loss)
Ordinary income (loss)
Net Income (loss)
Net income (loss) per share (¥)

260,000
8,000
17,00014,00030.99(Note) Revision of consolidated business forecasts during this period: None

1

11.7
103.4
51.3
72.5

Change %530,000
16,00034,00026,000
57.56

13.3
40.1
23.0
-

4. Other Information
1) Transfer of important subsidiaries during the period under review: None
(Transfers of certain subsidiaries resulting in changes in the scope of consolidation)2) Adoption of simplified accounting methods: None
3) Changes in accounting policies, changes in accounting estimate or restatement of corrections:
1. Changes in accounting policies following revisions to accounting standards: None
2. Changes other than 1: None
3. Changes in accounting estimates: None
4. Restatement of corrections: None4)

Number of shares outstanding (ordinary shares)June 30, 2013

March 31, 2013

Number of shares issued at end of period(including treasury shares)

483,478,398

483,478,398

Number of treasury shares at end of period

31,775,238

31,769,134

April 1 – June 30, 2013
Average shares outstanding during period

451,706,738

April 1 – June 30, 2012
451,752,570(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 business results for this period
Note: All comparisons are with the first quarter of the previous fiscal year, unless stated otherwise.

(1)Consolidated operating results
Overview of results
During the first quarter of the fiscal year ending March 2014 (April 1-June 30, 2013), the Japanese economy
saw recovery in some areas, e.g., the improving export environment thanks to the weaker yen. However, it
continued to face great strain due to declines in demand caused primarily by the slowdown of the Chinese
economy.
The MGC Group achieved an increase in revenue compared with the same period of the previous year.
Major contributions came from higher sales volumes of general-purpose aromatic chemicals and generalincreases in the sales prices of chemicals due to the weaker yen.
Group operating income was also higher than the corresponding prior-year figure, thanks primarily to theimproved profitability of exports and increases in sales volumes of products for semiconductor and LCD
applications.
In addition to the higher operating income, equity in earnings of affiliates grew compared with the prior-yearlevel due mainly to excellent performances of overseas methanol producing companies, resulting in a higher
ordinary income.
In the quarter under review, the MGC Group achieved ¥130.1 billion in consolidated net sales, an increase of¥14.7 billion (12.7%). Consolidated operating income was ¥6.8 billion, an increase of ¥5.7 billion (512.7%).
Equity in earnings of affiliates was ¥6.3 billion, an increase of ¥1.0 billion (19.1%). Consolidated ordinary
income grew by ¥8.8 billion (166.8%) to ¥14.0 billion. Consolidated net income was ¥11.7 billion, an increaseof ¥7.5 billion (181.0%).

Results by business segment
Natural Gas Chemicals Company
The methanol business achieved an increase in revenue thanks to rising sales prices, which were madepossible by the weaker yen and strong market.
Methanol and ammonia derivatives grew in both revenue and earnings. Reasons include growing sales
volumes for MMA-based products and neopentylglycol as well as the reduction in repair cost for the ammonia
equipment.
Crude oil and other energy sources achieved prior-year-level earnings thanks to the favorable development of
crude oil sales.
In the first quarter of fiscal 2013, the Natural Gas Chemicals Company achieved consolidated net sales of¥41.6 billion, an increase of ¥2.5 billion (6.6%) from the same period of the previous year and an operating
income of ¥0.9 billion, a year-on-year improvement of ¥1.8 billion. An equity in earnings of affiliates of ¥5.1
billion, coming primarily from overseas methanol producing companies, was posted, resulting in a consolidated
ordinary income of ¥5.6 billion, an increase of ¥2.7 billion (92.1%).

3

Aromatic Chemicals Company
Specialty aromatic chemical products posted higher revenue and earnings compared with the prior-year
period. Positive contributions came from favorable development of sales volumes for meta-xylenediamine andNylon-MXD6, as well as a higher profitability of exports.
Purified isophthalic acid grew in both revenue and earnings. This is partly because an increase in sales
volume and the weaker yen made exports more profitable. Another reason was that fixed costs were reduced
by structural reform and other initiatives conducted during fiscal 2012.
In the first quarter of fiscal 2013, the Aromatic Chemicals Company achieved consolidated net sales of ¥37.0
billion, an increase of ¥4.9 billion (15.4%), an operating income of ¥1.4 billion, an improvement of ¥1.9 billion,
and an ordinary income of ¥1.3 billion, an improvement of ¥2.0 billion.

Specialty Chemicals Company
Inorganic chemicals achieved prior-year-level earnings because of a reduction in the sales volume ofhydrogen peroxide which was offset by a higher increase in the sales volumes of persulfates.
The electronic chemicals business achieved growth in both revenue and earnings. The major reason was
the successful sales of products for semiconductors and LCD displays in overseas markets.
The engineering plastics business suffered lower earnings because both polycarbonate and polyacetal wereless profitable due to reductions in market prices.
Polycarbonate sheets and films enjoyed growth in both revenue and earnings. This is because of the higher
sales volume of films for use in flat panel displays.
In the first quarter of fiscal 2013, the Specialty Chemicals Company achieved consolidated net sales of¥36.5 billion, an increase of ¥5.8 billion (18.9%) and an operating income of ¥2.5 billion, an increase of ¥0.9
billion (60.0%). Due to ¥0.6 billion equity in earnings of affiliates, the Company achieved an ordinary income of¥3.6 billion, an increase of ¥2.0 billion (121.9%).

Information & Advanced Materials Company
Electronic materials grew in both revenue and earnings. BT materials for semiconductor packaging, which
represent MGC’s core segment for electronic materials, achieved higher sales volumes, notably forsmartphone-related applications. A further contribution came from the improved profitability of exports thanks
to the weaker yen.
Thanks to strong sales mainly in the domestic and overseas food markets, oxygen absorbers such as®

AGELESS achieved growth in both revenue and earnings.
In the first quarter of fiscal 2013, the Information & Advanced Materials Company achieved consolidated net
sales of ¥14.7 billion, an increase of ¥1.4 billion (10.5%), an operating income of ¥1.8 billion, an increase of¥1.0 billion (122.6%), and an ordinary income of ¥2.2 billion, growth of ¥1.3 billion (151.5%).

Other
In the first quarter of fiscal 2013, other business operations achieved consolidated net sales of ¥0.1 billion,a decline of ¥0.0 billion (9.8%) and an operating income of ¥0.0 billion, a drop of ¥0.0 billion (19.6%), and an
ordinary income of ¥0.2 billion, a decline of ¥0.0 billion (15.4%).

4

(2) Consolidated financial position
At the end of the first quarter of fiscal 2013, the MGC Group had ¥642.8 billion in total assets, anincrease of ¥28.9 billion from the end of fiscal 2012.
Current assets increased by ¥9.6 billion to ¥271.0 billion, primarily due to an increase in trade notes
and accounts receivable and increases in merchandise and finished goods.
Noncurrent assets increased by ¥19.3 billion to ¥371.8 billion. Property, plant and equipment rose by¥6.0 billion to ¥201.4 billion, thanks to an increase in construction in progress. Investments and otherassets were ¥166.9 billion, an increase of ¥13.2 billion, due mainly to an increase in investment securities
achieved by equity method companies.
Liabilities increased by ¥11.3 billion to ¥330.3 billion from the end of fiscal 2012.
Current liabilities increased by ¥6.1 billion to ¥201.6 billion, primarily due to an increase in trade notes
and accounts payable.
Noncurrent liabilities rose by ¥5.1 billion to ¥128.7 billion, primarily due to an increase in long-termloans payable.
Net assets were ¥312.5 billion, an increase of ¥17.6 billion from the end of fiscal 2012. This was
because foreign currency translation adjustments increased by ¥8.4 billion due to the weaker yen andretained earnings rose by ¥7.7 billion. As of June 30, 2013 the shareholders’ equity ratio was 46.8%.
(3) Consolidated business forecasts
The MGC Group confirms the consolidated and non-consolidated business forecasts announced on
May 9, 2013, for both the six months through the second quarter (April-September) and full-year fiscal
2013.

5

3. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets
Millions of yen, rounded down
As of March 31, 2013

As of June 30, 2013

Cash and deposits ..............................................................

28,88829,983

Trade notes and accounts receivable................................

127,843

134,821ASSETS
Current assets

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

140

140

Merchandise and finished goods .........................................

50,17254,058Work in progress ................................................................

10,607

10,975

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

27,261

24,732Other ...................................................................................

17,275

17,178

Allowance for doubtful accounts ..........................................

(792)

(821)

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

261,397

271,069

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

55,57056,772

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

69,78070,937

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

70,10173,755

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

195,453

201,465

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

3,374

3,435

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

3,374

3,435

Investment securities ........................................................

146,762

158,986

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

7,182

8,176

Allowance for doubtful accounts .......................................

(260)

(251)

153,683

166,911

Total noncurrent assets .........................................................

352,511

371,812

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

613,908

642,881Noncurrent assets
Property, plant and equipment

Intangible assets

Investments and other assets

Total investments and other assets

6

Consolidated Quarterly Balance Sheets (contd.)
Millions of yen, rounded down
As of March 31, 2013

As of June 30, 2013

Trade notes and accounts payable.......................................

73,907

79,119

Short-term loans payable......................................................

84,62785,877

Income taxes payable ...........................................................

1,358

1,147

Provision ...............................................................................

4,318

2,696

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

31,226

31,969Total current liabilities ......................................................

195,438

201,621

Bonds payable ................................................................

15,00015,000Long –term loans payable ....................................................

61,18365,896

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

7,549

7,873

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

2,951

2,716

Asset retirement obligations .................................................

4,207

4,224

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

32,682

33,042

Total noncurrent liabilities ................................................

123,574

128,754

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

319,013330,375

Capital stock .........................................................................

41,97041,970Capital surplus ................................................................

35,59535,595Retained earnings................................................................

231,882

239,620

Treasury stock ................................................................

(8,094)(8,099)301,353

309,087

Valuation difference on available-for-sale securities .............

8,607

9,499

Revaluation reserve for land ............................................

206

206

Foreign currency translation adjustment ...............................

(26,311)(17,887)

Total accumulated other comprehensive income..................

(17,497)(8,181)

LIABILITIESCurrent Liabilities

Noncurrent liabilities

NET ASSETS
Shareholders’ equity

Total shareholders’ equity..............................................
Accumulated other comprehensive income

11,03911,601

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

294,895

312,506

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

613,908

642,881

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

7

(2) Consolidated Quarterly Statements of Income
Millions of yen, rounded down
April 1 - June 30, 2012

April 1 - June 30, 2013

Net sales ...............................................................................

115,433

130,138

Cost of sales ................................................................

100,344

108,438

Gross profit ............................................................................

15,08821,700

Selling, general and administrative expenses ....................

13,971

14,852

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

1,117

6,848

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

32

34

Dividend income ................................................................

545

633

Equity in earnings of affiliates ............................................
Other ..................................................................................

5,343
593

6,362
1,708

Total non-operating income ............................................

6,515

8,739

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

589

711

Personnel expenses for seconded employees ..................

431

416

Foreign exchange losses ...................................................

512-

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

819

374

Total non-operating expenses ........................................

2,353

1,502

5,280

14,085Gain on sales of noncurrent assets ................................

180

175

Insurance income ..............................................................

137-

Total extraordinary income .............................................

318

175

Business structure improvement expenses ................

-

168

Environmental improvement expensive .............................

224

150

Provision for compensation expenses ...............................

838-

Loss on valuation of investment securities ........................

670-

Impairment loss ................................................................

22-

Total extraordinary losses ..............................................

1,754

318

Income before income taxes and minority interests ..............

3,843

13,942

Income taxes, etc. .............................................................................

(452)

1,896

Net income before minority interests ...........................................

4,295

12,045

106

275

4,188

11,770Non-operating income

Non-operating expenses

Ordinary income ................................................................
Extraordinary income

Extraordinary losses

Minority interests in income .............................................
Net income ............................................................................

8

(Consolidated Quarterly Statements of Comprehensive Income)April 1 - June 30, 2012
Income before minority Interests ................................................................ 4,295

Millions of yen, rounded down
April 1 - June 30, 201312,045

Other comprehensive Income
Valuation difference on available-for-sale securities ................................(3,678)

863

(32)

-

Foreign currency statements translation adjustment ................................ 1,892
Share of other comprehensive income of associates
3,760
accounted for using equity method................................

3,524

1,941

9,984

6,236

22,0305,743

21,086

493

943

Deferred gains or losses on hedges ................................

Total other comprehensive Income................................
Comprehensive Income ................................................................

5,597

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

9

4. Consolidated Quarterly Segment Information(1) Three-month period ended June 30, 2012 (April 1 – June 30, 2012)
1. Revenue and earnings by segment
Millions of yen, rounded down
Aromatic
chemicals

Specialty
chemicals

Information& advanced
materials

Sales to outside customers ................................
39,061
32,08130,78913,317

182－

115,433

594

230

0

13

(2,694)－40,91732,67531,02013,318

195(2,694)

115,433

2,950

(752)

1,640

875

288

278

5,280

Natural gas
chemicalsInter-segment sales ................................
1,855
Total
Segment income (loss)[Ordinary income (loss)]

Other(Note 1)

Adjustment(Note 2)

Consolidated(Note 3)

Notes：
1. The ‘Other’ segment includes operations not included in the other segments, such as listed related companies and real estate business.
2. The adjustment amounts are as follows:
The ¥278 million segment income adjustment consists of ¥63 million loss in inter-segment sales, and ¥342 million income of overall costs
not allocated to segments.
Overall costs include SG&A expenses, financing expenses, and other expenses not allocated to segments.
3. Segment income (loss) is based on ordinary income as provided in the quarterly consolidated statement of income(2) Three-month period ended June 30, 2013 (April 1 – June 30, 2013)
1. Revenue and earnings by segment
Millions of yen, rounded down
Aromatic
chemicals

Specialty
chemicals

Information& advanced
materials

Sales to outside customers ................................
41,62537,03336,595

14,718164－130,138

455

278

1

17

(2,887)－43,76037,48936,874

14,720182(2,887)130,138

5,666

1,309

3,640

2,200

244

1,024

14,085Natural gas
chemicalsInter-segment sales ................................
2,134
Total
Segment income (loss)[Ordinary income (loss)]

Other(Note 1)

Adjustment(Note 2)

Consolidated(Note 3)

Notes：
1. The ‘Other’ segment includes operations not included in the other segments, such as listed related companies and real estate business.
2. The adjustment amounts are as follows:
The ¥1,024 million segment income adjustment consists of ¥3 million loss in inter-segment sales, and ¥1,028 million income of overall
costs not allocated to segments.
Overall costs include SG&A expenses, financing expenses, and other expenses not allocated to segments.
3. Segment income (loss) is based on ordinary income as provided in the quarterly consolidated statement of income.

10