SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS
Results for the Fiscal Year 2010 (from April 1, 2010 to March 31, 2011)
MITSUBISHI GAS CHEMICAL COMPANY, INC.
Stock Code:

4182

URL:

http://www.mgc.co.jp

May 9, 2011
Listed exchanges: First section, Tokyo Stock Exchange
Inquiries: Motoyasu Kitagawa
General Manager
Corporate Communications Division
Telephone: +81 3 3283-5041

President:
Kazuo Sakai
Scheduled date of general shareholders' meeting: June 28, 2011
Scheduled date of filing of the financial report: June 28, 2011
Scheduled date of payment of dividend: June 9, 2011

1. Consolidated Financial Results for the Fiscal Year 2010 (from April 1, 2010 to March 31, 2011)
1) Consolidated Operating Results
Percentage figures represent changes compared to the previous fiscal year

Millions of yen, rounded down

FY 2010

FY 2009(% 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 (%) ........................

451,033
23,36336,394
18,950
41.92
41.00
6.9
6.5
5.2

(% change)

17.3
471.2
394.1
225.2

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

(14.1)
5.6(16.9)

Note: Comprehensive income: FY 2010: ¥16,561 million (55.5%); FY 2009: ¥10,650 million (- %)Equity in earnings of affiliates: FY 2010: ¥17,873 million; FY 2009: ¥8,794 million

2) Consolidated Financial Position

Millions of yen, rounded down

FY 2010
Total assets..................................................................
Net assets ....................................................................
Shareholders’ equity ratio (%) ......................................
Net assets per share (¥)...............................................

FY 2009577,045
288,25748.2
615.25

539,431
278,09449.9
595.56

Note: Shareholders’ equity: FY 2010: ¥278,096 million; FY 2009: ¥269,213 million

3) Consolidated Cash Flows

Millions of yen, rounded down

FY 2010
Cash flow from operating activities...............................
Cash flow from investing activities ...............................
Cash flow from financing activities ...............................
Cash and cash equivalents at end of period ................

FY 2009
39,773(24,626)(1,849)46,76831,326(33,662)(15,354)
36,048

2. Dividends
FY 2009

FY 2010

4.00
4.00
8.00
3,616
62.1
1.4

4.00
4.00
8.00
3,616
19.1
1.3

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 (%) ...................................

FY 2011(Forecast)
4.00
4.00
8.00
-

3. Forecasts for the fiscal year 2011 (from April 1, 2011 to March 31, 2012)
Percentage figures represent changes compared to the previous interim period or fiscal year

Interim period

Millions of yen, rounded down

FY 2011(% change)(% change)

Sales ............................................................................
Operating income.........................................................
Ordinary income...........................................................
Net Income...................................................................
Earnings per share (¥)
MGC has managed to work out rough schedules for the recovery of the production sites affected by the major earthquake that
hit Eastern Japan in March 2011. At the present, however, the company can announce no forecasts on its performance in fiscal
2011 because it still requires time to accurately calculate the impact of the difficulties faced by the above sites in their operation.
Forecasts will be announced as soon as they are available.

14. Other Information
1) Transfer of important subsidiaries during the period: None
(Transfers of certain subsidiaries resulting in changes in the scope of consolidation)2) Changes in accounting methods, procedures and presentation in the preparation of these financial statements
1. Changes following revisions to accounting standards: Yes
2. Other changes: None
3) Number of shares outstanding (ordinary shares)
Number of shares outstanding at end of the fiscal year(including treasury shares) .......................................
Number of treasury shares at end of the fiscal year .......
Average shares outstanding during the fiscal year .........

FY 2010

FY 2009483,478,398
31,471,354
452,023,503

483,478,398
31,446,964
452,044,572

Reference: Outline of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the fiscal year 2010 (from April 1, 2010 to March 31, 2011)1) Non-consolidated Operating Results
Percentage figures represent changes compared to the previous fiscal year

Millions of yen, rounded down

FY 2010

FY 2009(% change)

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

340,007
6,987
14,351
4,724
10.45
10.22

21.9
3.2

2) Non-consolidated Financial Position(% change)

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

(10.0)(97.6)(63.9)

Millions of yen, rounded down

FY 2010
Total assets...................................................
Net assets .....................................................
Shareholders’ equity ratio (%).......................
Net assets per share (¥) ...............................

FY 2009396,888
181,32745.7
401.16

375,704
174,96646.6
387.07

Note: Shareholders’ equity: FY 2010: ¥181,327 million; FY 2009: ¥174,966 million(NOTE)
1. These financial results are not subject to review procedures. At this time of disclosure of these financial results, the 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 Results①Results for this period
During fiscal 2010, the Japanese economy continued to show signs of recovery. In the second
half of the year, however, recovery paused due to appreciation of the yen against the dollar. The
major earthquake that struck off the coast of Eastern Japan on March 11, 2011 had a serious
impact on the economy.
The MGC Group’s overseas businesses in general, including exports, were affected by thestrong yen, and demand for some products for semiconductors and LCDs declined in the second
half of the year. However, higher sales volumes for most products and improvement in the market
for chemicals pushed up both revenue and earnings.
The March 11 earthquake affected buildings and equipment at the MGC Kashima Plant and
MGC electronic materials production subsidiary Electrotechno Co., Ltd. An extraordinary loss of¥3.0 billion due to the natural disaster was, therefore, included in the financial statements.
Operating results were not very seriously affected.
Against this business backdrop, the MGC Group implemented various measures in accordancewith the basic policy stated in its medium-term management plan, “MGC Will 2011,” while at thesame time making efforts to increase sales volume and maintain margins at acceptable levels.
After the major earthquake and tsunami, the company made all-out efforts to restore theaffected sites as quickly as possible.
In fiscal 2010, the MGC Group achieved ¥451.0 billion in consolidated net sales, an increase of¥66.5 billion (17.3%) from the previous year. Consolidated operating income was ¥23.3 billion, an
increase of ¥19.2 billion (471.2%). Consolidated ordinary income rose by as much as ¥29.0 billion(394.1%) to ¥36.3 billion. The net income of ¥18.9 billion, an increase of ¥13.1 billion (225.2%)
from the previous year, includes extraordinary losses of ¥13.9 billion, which in turn include losseson the appraisal of investments in securities as well as losses due to the natural disaster and theapplication of the Accounting Standard for Asset Retirement Obligations.
On the non-consolidated basis, MGC posted ¥340.0 billion in net sales, an increase of ¥61.0
billion (21.9%) from the previous year. Operating income was ¥6.9 billion, an increase of ¥14.2
billion, and ordinary income grew by a substantial ¥14.0 billion to ¥14.3 billion.
Non-consolidated net income grew by ¥0.1 billion (3.2%) from the previous year to ¥4.7 billion.
Results by business segment
Natural Gas Chemicals Company
The methanol business enjoyed an increase in net sales thanks to growing sales volumes, as
demand in the fuel market and other markets in China drove world demand to increase prices, andthe new plants in Brunei and Venezuela started operation.
Methanol and ammonia derivatives marked improvements both in net sales and earnings
because strong demand in Asian countries caused an upward trend in the markets for MMA andneopentylglycol.
Despite a reduction in fixed cost, the enzyme and coenzyme business suffered from low
earnings, as sales of coenzyme Q10 remained sluggish.
Crude oil and other energy increased in earnings due to an increase in the sales price of crudeoil.
In fiscal 2010, the Natural Gas Chemicals Company achieved consolidated net sales of ¥145.5
billion, an increase of ¥35.0 billion (31.7%) from the previous year and an operating income of3¥1.3 billion, a year-on-year increase of ¥7.2 billion. Due to improvement in the performance ofoverseas methanol producing companies, equity in earnings of affiliates of ¥11.7 billion was
posted, resulting in a consolidated ordinary income of ¥11.5 billion, a year-on-year increase of¥13.8 billion.

Aromatic Chemicals Company
Specialty aromatic chemical products improved both in terms of net sales and earnings, due tothe strong performance of meta-xylenediamine for epoxy resin curing agents, Nylon-MXD6 for gas
barriers in PET bottles and engineering plastics, and aromatic aldehydes for resin additives in
Europe and the USA.
Purified isophthalic acid enjoyed growing demand mainly in PET bottle applications in China andother Asian markets, resulting in higher prices in the fourth quarter. However, profitability did not
fully recover due to the strong yen against the dollar.
In fiscal 2010, Aromatic Chemicals Company achieved consolidated net sales of ¥111.1 billion,
an increase of ¥16.7 billion (17.7%), an operating income of ¥0.2 billion, an increase of ¥6.1 billion,
and an ordinary loss of ¥0.7 billion, an improvement of ¥7.4 billion from the previous year.
Specialty Chemicals Company
The inorganic chemicals business improved both in terms of revenue and earnings due to higher
sales volumes for hydrogen peroxide as a discoloring agent for pulp/paper and as an industrial
oxidizing agent.
The electronic chemicals business, including overseas subsidiaries, grew both in terms ofrevenue and earnings, as sales volumes of products for both semiconductors and LCD
applications increased.
In engineering plastics, polycarbonates suffered a loss in earnings due to a decline in sales
volume and increases in raw material prices. By contrast, sales of polyacetal were driven bystrong demand in Asia, surpassing the prior-year levels.
Due to the major earthquake in March, the Kashima Plant, a key MGC production site,
suspended operation. The negative contributions to business results will be included in thefinancial statements for fiscal 2011.
Polycarbonate sheets and films achieved higher revenue and earnings with increases in thesales volumes of sheets for exclusive sunglasses and cellular phones, although the average unit
sales prices of films used in flat panel displays declined.
In fiscal 2010, the Specialty Chemicals Company posted consolidated net sales of ¥134.0 billion,
an increase of ¥15.7 billion (13.3%) from the previous year and an operating income of ¥15.1
billion, a year-on-year increase of ¥3.6 billion (32.0%). Due to a ¥3.0 billion equity in earnings ofaffiliates, ordinary income reached ¥17.1 billion, an increase of ¥4.6 billion (37.3%).
Information & Advanced Materials Company
BT materials for semiconductor packaging showed good performance in the beginning of the
fiscal year due to strong demand for applications for mobile phones and digital consumer
electronics. But they slowed down in the late second quarter due to stock adjustments bycustomers. For the full year, however, an increase in earnings was achieved thanks to cost
reduction effects. On the other hand, the sales volume remained at the same level as the previous
year, partly because Electrotechno suspended production temporarily following the major
earthquake in March.
Despite being affected by the summer heat in the core market for domestic food, oxygen4

absorbers such as AGELESS® achieved year-on-year growth in earnings thanks to the spread ofindividual food packaging and successful sales of products for other applications.
In fiscal 2010, the Information & Advanced Materials Company achieved consolidated net salesof ¥59.5 billion, a decline of ¥ 0.8 billion (1.4%), an operating income of ¥7.7 billion, a year-on-yearincrease of ¥1.5 billion (25.6%), and an ordinary income of ¥7.5 billion, an increase of ¥1.9 billion(35.7%).

Other
In the year ended March 31, 2011, the other business segment achieved consolidated net salesof ¥0.7 billion, a year-on-year decline of ¥0.1 billion (11.7%). Operating income fell by ¥0.1 billion(38.8%) to ¥0.2 billion, and ordinary income increased by ¥0.7 billion (44.8%) to ¥2.3 billion.
②Consolidated forecasts for the fiscal year 2011
The world economy is expected to recover as a whole. However, Japan will face economic
difficulties due to the suspension of production and limited power supplies caused by the major
earthquake in March.
In the MGC Group, the March 11 earthquake affected the Kashima Plant and Electrotechno Co.,
Ltd., key production sites for specialty chemicals and information/advanced materials. Bothlocations were forced to suspend production. In early May, Electrotechno is expected to recoverproduction to the level at which it operated before the earthquake. The Kashima Plant will not beable to resume normal operation until late June. MGC has managed to work out rough schedules
for the recovery of the production sites. At the present, however, the company can announce noforecasts on its performance because it still requires time to accurately calculate the impact of the
difficulties faced by the above sites in their operations.
MGC will announce its forecasts as soon as they are available.
(2) Consolidated financial position①Assets, liabilities and net assets
As of March 31, 2011, total consolidated assets were ¥577.0 billion, ¥37.6 billion higher than at
the end of the previous fiscal year.
Current assets increased by ¥26.4 billion to ¥244.5 billion, primarily due to an increase in tradenotes and accounts receivable associated with a recovery of sales.
Fixed assets increased by ¥11.1 billion to ¥332.5 billion, primarily due to an increase in leaseassets.
Total liabilities increased by ¥27.4 billion to ¥288.7 billion. Current liabilities rose by ¥22.2 billion.
Contributions include a decline due to ¥4.1 billion in repayment of short-term borrowings, a ¥20.0
billion current portion of corporate bonds transferred from non-current liabilities, a ¥3.6 billion
increase in trade notes and accounts payable. Non-current liabilities increased by ¥5.2 billion:
While ¥20.0 billion in corporate bonds was transferred to current liabilities, there were increases inlease liabilities, long-term borrowings, and other such factors.
Net assets increased by ¥10.1 billion to ¥288.2 billion. Valuation gains on other investment
securities and a net income of ¥18.9 billion more than offset the decrease from foreign currencytranslation adjustments.
As of March 31, 2011, the shareholders’ equity ratio was 48.2% (March 31, 2010: 49.9%). Net
assets per share at the end of the period were ¥615.25, compared to ¥595.56 one year earlier.
②Consolidated cash flows

5In line with MGC Will 2011, MGC Group’s current medium-term management plan, MGC is emphasizing
the allocation of resources to leverage the different characteristics and technical strengths within eachbusiness in everything from basic chemicals through to high-performance materials, and strengthening andexpanding its core businesses to expand earnings. In order to construct and maintain a sound financial
condition, MGC is working to create free cash flow, taking steps such as disposing of unutilized assets andoptimizing inventories.
As of March 31, 2011, total cash and cash equivalents were ¥46.7 billion, ¥10.7 billion higher
than at the end of the previous fiscal year.
1) Operating activity cash flow
Net cash provided by operating activities increased by ¥8.4 billion from the previous year to¥39.7 billion. The primary contribution came from a ¥16.4 billion increase in net income before
income taxes to ¥23.9 billion.
2) Investing activity cash flow
Net cash outflow from investing activities was ¥24.6 billion, ¥9.0 billion less than the outflow for
the previous year. This was primarily because outflow due to the acquisition of fixed assets fell by¥5.7 billion from the previous year to ¥25.9 billion.
3) Financing activity cash flow
Net cash outflow from financing activity was ¥1.8 billion, a decline of ¥13.5 billion from theprevious year. This was because borrowings increased in fiscal 2010, following a decline in theprevious year.

(3) Dividend policy, payments and forecasts
For the year under review, MGC plans to pay a year-end dividend of ¥4.0 per share, aspreviously forecast. In combination with the interim dividend of ¥4.0 per share already paid, thisrepresents an annual dividend of ¥8.0 per share and a consolidated payout ratio of 19.1%.
MGC has yet to announce its forecasts for fiscal 2011. However, it follows its dividend policy andplans to pay the same dividends per share as for the current fiscal year: ¥4.0 interim and ¥4.0
year-end.

2. Management policy(1) Basic management approach
Based on the MGC Group management philosophy of developing in harmony with society through usingchemistry to create diverse value, MGC aims to realize CSR in all its activities while developing andgrowing sustainably on a global stage as a highly differentiated, widely recognized chemicals group
operating from a strong platform of proprietary technology.
(2) Medium-term management indices and targets
MGC decided that, in order to follow a path of further sustainable growth it was necessary to formulate
and implement a plan from a long-term perspective. Consideration was first given to determining what kindof company MGC should aim to become by 2021, the 50th anniversary of its establishment. As the first stepin 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 excellence6● 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
FY 2011
ending March 2012
¥550.0 bn¥40.0 bn¥50.0 bn
9.0%
Below 0.6

Consolidated financial indices
Net sales
Operating income
Ordinary income
ROA (ordinary income/total assets)
Debt-equity ratio(3) Key issues
In implementing its business strategies, the MGC Group policy is to intensively funnel its
business resources into product groups with competitive advantage for further strengthening andexpansion.
Key challenges in creating new products and developing their markets include making good useof the MGC “technology platform” developed under the previous medium-term management plan,
adapting the diverse technology owned by the Group to functional needs from the market, andcreating synergy among group companies and divisions.
MGC will pursue sustainable growth through steps to further improve management quality.
Important management issues identified in the policy include achieving zero accidents or disasters,
actively contributing to the reduction of environmental impact, recruiting and development of
human resources, reducing costs, improving productivity, fine-tuning existing technologies,
constructing a more robust financial foundation, and enhancing global group management.
In the fiscal year ending March 31, 2012, the final year of the “MGC Will 2011” medium-term
management plan, the MGC Group will face economic uncertainty due to many reasons. These
include the impact of the major earthquake that hit Eastern Japan in March 2011, high raw
material costs, and exchange effects. Amid this adversity, MGC will continue to implement
rigorous cost-cutting and price revision measures, while at the same time continually improving
and strengthening its business structure.

7

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(In ¥ million, rounded down)
FY 2009(As of March 31, 2010)

FY 2010(As of March 31, 2011)

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

27,56047,964

Notes and accounts receivable-trade .................................

104,086

112,029

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

10,016613

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

33,18536,334Work in progress.................................................................

9,948

10,312

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

18,872

21,570

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

3,494

5,159

ASSETS
Current assets

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

11,622

11,316

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

(704)

(778)

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

218,082244,522

Noncurrent assets
Property, plant and equipment
Buildings and structures....................................................

123,652

128,227

Accumulated depreciation .............................................

(73,968)(77,774)

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

49,68350,453

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

340,217354,351

Accumulated depreciation .............................................

(272,963)(287,466)

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

67,253

66,884Land..................................................................................

22,93922,831

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

529

18,495

Accumulated depreciation .............................................

(146)(1,449)Leased assets, net ........................................................

382

17,045Construction in progress ...................................................

17,301

15,713

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

29,28830,389

Accumulated depreciation .............................................

(25,514)(26,494)

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

3,774

3,895

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

161,334

176,823

Goodwill..............................................................................

-

56

Lease assets ......................................................................

53

39

Intangible assets

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

2,671

2,269

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

1,932

1,866

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

4,658

4,231

130,471

131,047

Investments and other assets
Investment securities ..........................................................
Long-term loans receivable ................................................

2,733

522

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

17,457

15,564

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

6,323

4,795

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

(1,629)(462)

Total investments and other assets ...............................

155,356

151,468

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

321,348

332,523

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

539,431577,0458

Consolidated Balance Sheets (contd.)(In ¥ million, rounded down)
FY 2009(As of March 31, 2010)

FY 2010(As of March 31, 2011)

Notes and accounts payable-trade.....................................

56,486

60,108

Short-term loan payable .....................................................

74,004

69,845Current portion of bonds.....................................................

-

20,000Accrued expenses..............................................................

12,851

11,819Lease obligations ...............................................................

116

1,099

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

2,421

1,869

LIABILITIESCurrent liabilities

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

175

189

Provision for bonuses .........................................................

3,645

3,726

Reserve for loss on disaster ...............................................

-

2,185

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

4-

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

10,591

11,683

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

160,297

182,527

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

20,000-Long-term loans payable ....................................................

71,39475,850

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

332

15,883

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

866

1,037

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

4,630

5,402

Provision for directors’ retirement benefits .........................

1,046

450

Noncurrent liabilities

Accrued estimated cost of abandonment of wells .............

582-

Provision for environmental measures ...............................

711

617

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

219

234

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

-

3,472

Negative goodwill ...............................................................

229-

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

1,025

3,311

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

101,038

106,260

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

261,336

288,787

NET ASSETSStockholders’ equity
Capital stock.......................................................................

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

35,59035,591Retained earnings ..............................................................

222,394

236,597(7,905)(7,920)292,048306,238

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

(1,013)

4,197

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

(1)-

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

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

192

192

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

(22,013)(32,531)

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

(22,835)(28,142)

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

8,881

10,161

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

278,094288,257

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

539,431577,0459

(2) Consolidated Statements of (Comprehensive) Income(Consolidated Statements of Income)(In ¥ million, rounded down)
FY 2009

FY 2010(April 1, 2009 – March 31, 2010)(April 1, 2010 – March 31, 2011)

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

384,528451,033

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

326,738

370,963

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

57,79080,070

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

53,69956,706

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

4,090

23,363Non-operating income
Interest income .............................................................

201

123

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

1,182

1,247

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

8,794

17,873

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

1,954

1,778

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

12,13321,022

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

2,159

2,078

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

1,767

1,528

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

1,046

1,700

Loss on disposal of noncurrent assets..........................

1,158

1,077

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

2,725

1,606

Non-operating expenses

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

8,858

7,992

Ordinary income .............................................................

7,365

36,394297

751

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

193

730

Gain on sales of investment securities..........................

1,942

-

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

2,433

1,482

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

-

6,479

Loss on disaster............................................................
Loss on adjustment for changes of accounting
standard for asset retirement obligations ......................
Loss on liquidation of subsidiaries and affiliates ...........

-

3,003

-

1,777

-

1,642

Impairment losses.........................................................

519

598

Environment improvement expenses............................

-

296

Loss on sales of investment securities..........................

-

137

Loss on business withdrawal ........................................

374-

Bad-debts written off .....................................................

364-

Loss on alteration of overseas investment plan ............

341-

Loss on disposal of noncurrent assets..........................

265-

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

401-

Extraordinary income
Gain on sales of noncurrent assets...............................

Extraordinary losses

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

2,269

13,935

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

7,530

23,940

Income taxes-current........................................................

4,303

3,866

Refund of income taxes....................................................

-

(183)

Income taxes-deferred......................................................

(3,247)(49)

Total income taxes ...........................................................

1,055

3,633

Income before minority interests ......................................

-

20,306

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

646

1,356

Net income ......................................................................

5,827

18,95010

(Consolidated Statements of Comprehensive Income)(In ¥ million, rounded down)
FY 2009

FY 2010(April 1, 2009 – March 31, 2010)(April 1, 2010 – March 31, 2011)-

20,306

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

-

5,275

Foreign currency translation adjustments.......................
Share of other comprehensive income of associates
accounted for using equity method .................................
Total other comprehensive income ................................

-(1,843)-(7,177)-(3,745)Comprehensive income .....................................................

-

16,561-

15,481-

1,079

Income before minority interests ........................................
Other comprehensive income

Comprehensive income attributable toComprehensive income attributable to owners of theparent ...........................................................................
Comprehensive income attributable to Minority
interests ..........................................................................

11

(3) Consolidated Statements of Changes in Net Assets
FY 2009
Shareholders’ equity
Capital stock
Balance at the end of previous period ..................................
Balance at the end of current period.....................................
Capital surplus
Balance at the end of previous period ..................................
Changes of items during the period
Disposal of treasury stock .................................................
Total changes of items during the period ..........................
Balance at the end of current period.....................................
Retained earnings
Balance at the end of previous period ..................................
Changes of items during the period
Dividends from surplus......................................................
Net income ........................................................................
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 end of previous 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 end of previous period ..................................
Changes of items during the period
Dividends from surplus......................................................
Net income ........................................................................
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 ..........................
Balance at the end of current period.....................................

12(In ¥ million, rounded down)
FY 2010(April 1, 2009 – March 31, 2010)(April 1, 2010 – March 31, 2011)

41,97041,97041,97041,97035,58935,5901
135,5901
135,591

221,990

222,394(5,424)
5,827-(3,616)
18,950(134)

403
222,394(996)
14,203
236,597(7,891)(7,905)

(15)
1
(14)
(7,905)

(15)
1
(14)
(7,920)291,658

292,048(5,424)(3,616)

5,827
(15)
2
390
292,048

18,950
(134)
(996)
(15)
2
14,190306,238

Consolidated Statements of Changes in Net Assets (contd.)(In ¥ million, rounded down)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the end of previous 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 end of previous 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 end of previous period ..................................
Balance at the end of current period.....................................
Foreign currency translation adjustments
Balance at the end of previous 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 end of previous 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 end of previous 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 end of previous period ......................................
Changes of items during the period
Dividends from surplus .........................................................
Net income............................................................................
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

FY 2009

FY 2010(April 1, 2009 – March 31, 2010)(April 1, 2010 – March 31, 2011)(3,330)(1,013)

2,317
2,317
(1,013)

5,210
5,210
4,197

29

(1)

(31)
(31)
(1)

1
1
-

192
192

192
192

(23,688)(22,013)

1,675
1,675
(22,013)(10,518)(10,518)(32,531)(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(5,424)(3,616)

5,827
(15)
2
5,621
6,011
278,094

18,950
(134)
(996)
(15)
2
(4,027)
10,162
288,257

(4) Consolidated Statements of Cash Flows(In ¥ million, rounded down)
FY 2009
Net cash provided by (used in) operating activities
Income before income taxes and minority interests ........................
Depreciation and amortization.........................................................
Loss (gain) on disposal of noncurrent assets ..................................
Amortization of goodwill ..................................................................
Insurance income ............................................................................
Impairment losses ...........................................................................
Loss on disaster ..............................................................................
Loss on liquidation of subsidiaries and affiliates..............................
Equity in (earnings) losses of affiliates ............................................
Increase (decrease) in allowance for doubtful accounts..................
Increase (decrease) in provision for retirement benefits..................
Interest and dividends income.........................................................
Interest expenses ............................................................................
Loss (gain) on sales of short-term and long-term investment
securities .........................................................................................
Loss (gain) on valuation of short-term and long-term investment
securities .........................................................................................
Loss on adjustment for changes of accounting standard for asset
retirement obligations ......................................................................
Environment improvement expenses ..............................................
Decrease (increase) in notes and accounts receivable-trade..........
Decrease (increase) in inventories ..................................................
Increase (decrease) in notes and accounts payable-trade..............
Increase (decrease) in accrued consumption taxes. .......................
Increase (decrease) in provision for directors’ retirement benefits ..
Other, net ........................................................................................
Subtotal ....................................................................................
Interest and dividends income received ..........................................
Proceeds from dividends income from affiliates accounted for byequity method..................................................................................
Interest expenses paid ....................................................................
Income taxes (paid) refund..............................................................
Proceeds from insurance income ....................................................
Payments for loss on disaster .........................................................
Net cash provided by (used in) operating activities .............
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 .................................
Proceeds from sales of investments in subsidiaries resulting inchange in scope of consolidation ....................................................
Payments of loans receivable..........................................................
Collection of loans receivable..........................................................
Other, net ........................................................................................

14

FY 20107,530
29,535466(28)
519(8,794)167
894(1,384)
2,159

23,94028,950
113
146
(730)
598
3,003
1,642
(17,873)4
847(1,371)
2,078(2,050)

137

4

6,479

-

1,777

(29,579)296(10,606)

3,510
17,146552(6,224)
4,635
(443)

(2)
(520)
20,127
1,392

40
(317)
37,128
1,371

9,182

7,785

(2,200)2,824
31,326(2,178)(4,814)730(249)
39,773(990)
894(31,634)
1,181(6,878)
4,030

(729)
1,072
(25,913)
2,682(2,277)
4

-

315

(837)
1,015
(444)

(420)
957
(318)

Consolidated Statements of Cash Flows (contd.)(In ¥ million, rounded down)
FY 2009

FY 2010

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 stock issuance to minority shareholders .................
Purchase of treasury stock ..............................................................
Cash dividends paid ........................................................................
Cash dividends paid to minority shareholders .................................
Other, net ........................................................................................

(33,662)(24,626)(3,130)9,079(15,096)(15)(5,424)
(621)
(145)

(2,351)
11,231(6,469)847(15)(3,616)
(840)
(634)

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 fromchange of scope of consolidation ......................................................
Cash and cash equivalents at end of period.................................

(15,354)(445)(18,135)
53,065(1,849)(3,048)
10,24936,0481,119469

36,04846,76815

(5) Segment information
1. Segment overview
Mitsubishi Gas Chemical employs an in-house company system, which was adopted to clarify the responsibilitiesof each business and improve efficiency. Each company conducts its business according to an independent
strategy formulated around its products and services. This structure makes it possible obtain separate financial
information for each segment, and in order to optimize the allocation of management resources and assessment of
performance by the Board of Directors, the four companies, the Natural Gas Chemicals Company, the Aromatic
Chemicals Company, the Specialty Chemicals Company and the Information & Advanced Materials Company, areused as segments for the presentation of financial information.
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.
The Specialty Chemicals Company manufactures and sells products such as hydrogen peroxide and otherinorganic chemicals for industrial use, electronic chemicals, and engineering plastics.
The Information & Advanced Materials Company manufactures and sells products such as materials for printed
circuit boards, printed circuit boards, and oxygen absorber such as AGELESS®.

2. Business segments
FY 2010 (from April 1, 2010 to March 31, 2011)(In ¥ million, rounded down)
Natural gas
chemicals

Aromatic
chemicals

Specialty
chemicals

Information
chemicals andadvancedmaterials

Sales to outside customers ....

145,563

111,182

134,016

59,507

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

6,123

2,256

2,026

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

151,687

113,439

income (loss) .....

11,531

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

Other

Adjustment

Consolidated

763-

451,033

1

97(10,507)-

136,043

59,509860(10,507)451,033(710)

17,101

7,501

2,339

(1,369)36,394

177,715

103,749

152,758

57,53741,96843,316

577,045

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

8,561

7,757

7,989

4,204

35

401

28,950

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

52

354

0

13

-

(273)

146

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

(16)

(27)

(228)

(1)

-

273

-

Net sales

Operating

Other items

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

48

33

79

51

0

(89)

123

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

1,069

724

492

144

9

(361)

2,078

Equity in earnings of affiliates

11,760

637

3,003

-

2,477

(4)

17,87350,231

1,400

9,378

-

21,636(122)

82,524

14,0204,503

14,825

1,789

1

260

35,400Investment to equity method
affiliates .............................
Increase of property, plant andequipment and intangible
assets ................................ .

16

FY 2009 (from April 1, 2009 to March 31, 2010)(In ¥ million, rounded down)
Natural gas
chemicals

Aromatic
chemicals

Specialty
chemicals

Information
chemicals andadvancedmaterials

Sales to outside customers ...

110,502

94,474

118,31160,376

864-

384,528

Inter-segment sales.......... …

10,798

1,391

1,867

10

185

(14,254)-

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

121,301

95,866

120,178

60,3861,050(14,254)384,528

income (loss) .....

(2,289)(8,114)

12,452

5,527

1,615

(1,796)

7,365

Identifiable assets bybusiness segment ................

156,897

103,165

135,30964,43041,00538,622539,431

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

7,503

7,925

8,605

5,138

10

352

29,535

Amortization of goodwill ........

0

259

0

1

-

(262)

-

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

(14)

(22)

(251)

(1)

-

262

(28)

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

90

14

78

52

1

(36)

201

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

958

765

450

194

4

(213)

2,159

5,533

(36)

1,949

-

1,363

(15)

8,794

41,216

1,157

8,544

-

20,625(150)

71,393

7,090

7,732

8,129

4,473

2

139

27,567

Other

Adjustment

Consolidated

Net sales

Operating

Other items

Equity in earnings ofaffiliates ..............................
Investment to equity method
affiliates ..............................
Increase of property, plantand equipment andintangible assets ..................

17