SUMMARY OF FINANCIAL STATEMENTS (Consolidated)
First quarter results for the year ending March 31, 2008
MITSUBISHI GAS CHEMICAL COMPANY, INC.
Stock Code:4182
http://www.mgc.co.jp
President:
Kazuo Sakai

Listed exchanges:
Inquiries:

Telephone:

July 31, 2007

Tokyo, Osaka, Nagoya 1st sections
Yasuhiro Sato
General Manager
Corporate Communications Division+81 3 3283-5041

1) Consolidated financial results for the first quarter (April 1, 2007 to June 30, 2007) of the fiscal year ending
March 31, 2008
Note: Percentage figures for sales, operating income, etc. represent changes compared to the same period of the previous fiscal year.

(1) Consolidated Operating Results

Millions of yen, rounded down

Three months ended
June 30, 2007
% change

Three months ended
June 30, 2006
% change

Net sales..........................................................
127,886
11.6
114,623
Operating income.............................................
12,05631.2
9,189
Ordinary income...............................................
20,30234.0
15,152
Net income.......................................................
13,612
12.4
12,112
Earnings per share (¥) .....................................
29.45
26.20
Earnings per share (diluted) (¥) .......................
28.82Note: Gain from investments in subsidiaries and affiliates accounted for by the equity method:
Three months ended June 30, 2007: ¥ 7,459 million
Three months ended June 30, 2006: ¥ 5,710 million
Fiscal year ended March 31, 2007: ¥23,200 million

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

% change

12.8
21.3
52.5
71.6

(2) Consolidated Financial Position
Total assets .....................................................
Net assets........................................................
Shareholders’ equity ratio (%)..........................
Net assets per share (¥) ..................................
(3) Consolidated Cash Flows

Fiscal year ended
March 31, 2007
482,608
42,22061,72340,044
86.63
85.64-Millions of yen, rounded down

As of June 30, 2007
622,123
305,29447.6
640.33As of June 30, 2006
557,996
265,29746.1
555.96

Three months ended
June 30, 2007
9,526
(8,486)(5,023)37,977

Three months ended
June 30, 2006
(504)
(3,336)(65)
37,556

As of March 31, 2007
609,965
292,69646.5
613.64
Millions of yen, rounded down

Fiscal year ended
March 31, 2007
21,797(14,039)(8,819)41,266

2) Consolidated forecasts for the fiscal year ending March 31, 2008 (April 1, 2007 to March 31, 2008)
Consolidated results for the first quarter for the period ending March 31, 2008 were largely in line with forecasts. Forecasts
for the interim period ending September 30, 2007 and full year ending March 31, 2008 were announced on May 11, 2007,
and remain unchanged.
3) Other(1) Transfer of important subsidiaries during the period (Transfers of subsidiaries resulting in changes in the scope ofconsolidation: None
(2) Use of simplified accounting methods: Yes(3) Change in accounting methods since previous fiscal year: Yes
Note: For further detail, please see page3, Commentary on Results, 3. OtherPage 1 of 3

COMMENTARY ON RESULTS
Note: All comparisons are with the first quarter of the previous fiscal year, unless stated otherwise.

1. Consolidated Operating results
Consolidated net sales for the Mitsubishi Gas Chemical Company, Inc. group of companies (“MGCGroup”) for the first quarter period (April 1, 2007 to June 30, 2007) of the fiscal year ending March31, 2008 rose 11.6%, or ¥13.2 billion, to ¥127.8 billion. Consolidated operating income rose 31.2%,or ¥2.8 billion, to ¥12.0 billion. Consolidated ordinary income rose 34.0%, or ¥5.1 billion, to ¥20.3billion, and consolidated net income for the three months rose 12.4%, or ¥1.4 billion, to ¥13.6 billion.
Natural Gas Chemicals Company
Net sales in this business segment rose 15.2%, or ¥4.5 billion, to ¥34.6 billion, with operating
income rising ¥0.4 billion, to ¥0.3 billion.
In the methanol business, the steady operation of manufacturing plants around the world caused arelaxation of supply and demand conditions. Although the market, which had supported high prices
until just before the start of the quarter, fell considerably, sales prices still exceeded those of the firstquarter of the previous year, resulting in an increase in revenue when the sales of overseas
subsidiaries are included. Income from overseas methanol producing companies accounted for by
the equity method grew substantially due to earnings from a global surge in methanol prices in theperiod from January to March 2007.
Revenue from methanol and ammonia derivatives increased from the previous first quarter as aresult of firm sales and a reduction in maintenance and repair costs.
Revenue from enzymes and coenzymes decreased, due to a decline in the market particularly inexports—despite an increase in sales volumes of CoenzymeQ10.
Aromatic Chemicals Company
Net sales in this business segment rose 13.1%, or ¥4.3 billion, to ¥37.3 billion, while operating
profits increased 180.8%, or ¥2.4 billion, to ¥3.8 billion.
Revenue and earnings from commodity aromatic chemical products rose due to higher productprices, despite a surge in prices for the raw material xylene.
Specialty aromatic chemical products saw increased revenues and earnings on strong sales of
products such as isophthalic acid, due to flourishing global demand.
Specialty Chemicals Company
Net sales in this business segment increased 13.2%, or ¥4.2 billion, to ¥36.5 billion, and operating
income increased by 6.3%, or ¥0.2 billion, to ¥3.6 billion.
Inorganic chemicals for industrial use recorded steady performance led by hydrogen peroxide forpaper and pulp. Sales of chemicals for the electronics industry saw a decline due to inventory
adjustment by customers in the semi-conductor sector.
The engineering plastics business saw ongoing firm demand mainly for polycarbonates forelectronic and automotive applications, even in the face of increases in raw materials prices.
Sales volumes of polycarbonate sheet and film, for use in the manufacture of products such as flat
panel displays, continued to rise.
Information & Advanced Materials Company
Net sales in this business segment rose 0.7%, or ¥0.1 billion, to ¥19.1 billion, while operating profit
declined by 5.7%, or ¥0.2 billion, to ¥4.0 billion.
Revenue and earnings from sales of materials for printed circuit boards declined slightly comparedwith the same period of the previous year when there were strong orders for BT materials, despite
the upturn in orders with the ending of the period of inventory adjustments that had reduced
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demand from users. Sales volumes of LE sheets, entry sheets for mechanical drilling, maintained asimilar level to that of the same period of the previous year.
Exports of AGELESS® and other oxygen absorbers to the food processing sector were favorable,with revenues for the period increasing year-on-year.

2. Consolidated financial position
Assets, liabilities and owners’ equity
Total consolidated assets as of June 30, 2007 were ¥622.1 billion, ¥12.1 billion higher than at theend of the previous fiscal year. This was primarily because of increases in investment securities
and tangible fixed assets. Total liabilities decreased ¥0.4 billion to ¥316.8 billion, due to factors suchas a decrease in accrued corporate tax, despite an increase in deferred tax liabilities. Net assets
increased by ¥12.5 billion to ¥305.2 billion, due to first quarter net income and other factors, and net
assets per share were ¥640.33.
Consolidated cash flows
Net cash provided by operating activities was ¥9.5 billion, with net income before tax for the firstquarter period along with depreciation and amortization more than compensating for the negative
impact on operating cash flow of increases in accounts receivables and decreases in accounts
payable. Investing activities resulted in a net cash outflow of ¥8.4 billion, primarily because of theacquisition of fixed assets and investment securities. Financial activities produced a net cash
outflow of ¥5.0 billion, due to factors such as the repayment of long-term debt and the payment ofdividends.
As a result of the above, total cash and cash equivalents at the end of the first quarter period of thefiscal year ending March 31, 2008 were ¥37.9 billion.

3. Other(1) Important changes to subsidiaries (changes to specific subsidiary companies within the scope ofconsolidation):None.
(2) Adoption of simplified accounting methods
A simplified accounting method was adopted for a portion of the accounting standards forcorporate tax accounting.
(3) Changes in accounting methods since the previous consolidated fiscal year
- From the first quarter of the current consolidated fiscal year, the method of depreciation oftangible fixed assets acquired on or after April 1, 2007 has been changed to a method ofdepreciation based on the revised Corporation Tax Law.
From the first quarter of the current consolidated fiscal year, the method of depreciation of
MGC tangible fixed assets (excluding buildings, but not the facilities attached to those buildings)
has been changed from the straight-line method to the declining-balance method.
Due to these changes, operating income, ordinary income and net income before tax for the firstquarter period are each expected to decline by ¥402 million.
- Until now, income and expenses of overseas subsidiaries have been converted into yen at theexchange rate of the day of settlement of the accounts of each subsidiary. From this first-quarter
consolidated accounting period, the exchange rate has been changed to the average yen
exchange rate during the period.
The effects of this change on gains and losses are expected to be immaterial.

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

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