SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS
Results for the First Quarter of Fiscal Year 2012
(April 1 – June 30, 2012)

August 2, 2012

MITSUBISHI GAS CHEMICAL COMPANY, INC.
Listed exchanges:

First section of the Tokyo Stock Exchange

Stock Code:

4182

URL:

http://www.mgc.co.jp

President:

Kazuo Sakai

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 9, 2012−

1. Summary of Consolidated Results for the First Quarter of Fiscal Year 2012
(April 1, 2012 – June 30, 2012)
1) Operating results
Millions of yen, rounded down
Percentage figures denote change compared to equivalent period of previous year

April 1 – June 30, 2012

April 1 – June 30, 2011

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

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

0.1
(79.9)(47.6)(40.6)

Change %115,360
5,561
10,069
7,053
15.60
15.26

4.0
(11.4)
19.9
82.2(Note) Comprehensive income: first quarter of FY 2012：¥6,236 million [(28.9%)] ; first quarter of FY 2011：¥8,768 million [138.3%]

2) Financial position
Millions of yen, rounded down

As of June 30, 2012
606,643295,205
46.9

Total assets
Net assets
Equity ratio (%)

As of March 31, 2012
595,250
292,11147.3(Note) Shareholders’ equity as of June 30, 2012: ¥284,677 million; as of March 31, 2012: ¥281,687 million

2. Cash Dividends
FY 20126.00 (Forecast)
6.00 (Forecast)
12.00 (Forecast)Interim dividend per share (¥)
Year-end dividend per share (¥)
Annual dividend per share (¥)

FY 2011
6.00
6.00
12.00

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

3. Consolidated Business Forecasts for Fiscal Year 2012
(April 1, 2012 – March 31, 2013)
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 (¥)

230,000
4,000
11,0009,000
19.92(Note) Revision of consolidated business forecasts during this period: Yes

1

(0.0)
(46.7)(32.1)(25.7)

Change %480,000
13,00028,00023,000
50.90

6.1
43.1
7.2
86.6

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: Yes
2. Changes other than 1: Yes
3. Changes in accounting estimates: Yes
4. Restatement of corrections: None4)

Number of shares outstanding (ordinary shares)June 30, 2012

March 31, 2012

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

31,747,909

31,666,371

April 1 – June 30, 2012
Average shares outstanding during period

451,752,570

April 1 – June 30, 2011
452,005,364(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 2013 (April 1-June 30, 2012), the Japanese economy
faced great challenges. Signs indicating the instability of the world economy included the public debt crisis in
Europe, slowdown of the Chinese economy, and the continued appreciation of the yen against othercurrencies.
The MGC Group achieved the same level of net sales as it did for the corresponding prior-year period.
Despite increases in the sales volumes of methanol, electronic chemicals, and polycarbonates, products suchas methanol derivatives, aromatic chemicals, and electronic materials were affected by declining demand andmarket prices.
Operating income suffered a loss from a year earlier due to narrower margins resulting from declines in theprices of chemicals and lower sales volumes of electronic materials.
Equity in earnings of affiliates grew thanks to the excellent sales performance, achieved primarily byoverseas methanol producing companies benefiting from the high market prices of methanol, while ordinary
income was lower than the level the Group achieved in the prior-year period.
In the first quarter of fiscal 2012, the MGC Group achieved ¥115.4 billion in consolidated net sales, anincrease of¥0.0 billion (0.1%) from the prior-year period. Consolidated operating income was ¥1.1 billion, adecline of ¥4.4 billion (79.9%). Equity in earnings of affiliates was ¥5.3 billion, an increase of ¥0.2 billion (5.7%).
Consolidated ordinary income fell by ¥4.7 billion (47.6%) to ¥5.2 billion. Consolidated net income was ¥4.1
billion, a drop of ¥2.8 billion (40.6%).

Results by business segment
Natural Gas Chemicals Company
The methanol business enjoyed an increase in net sales thanks to growing delivery volume from overseas
methanol producing companies.
Methanol and ammonia derivatives suffered declines in revenue and earnings. Reasons for this include
declining sales prices of MMA-based products due to low market price levels and a reduction in the sales
volume of neopentylglycol caused by the slowdown of the Chinese economy.
The enzyme and coenzyme business recorded lower earnings compared with the prior-year period as salesof coenzyme Q10 remained sluggish.
Crude oil and other energy increased in both revenue and earnings thanks to an increase in the sales priceof crude oil from the previous year.
In the first quarter of fiscal 2012, the Natural Gas Chemicals Company achieved consolidated net sales of¥39.0 billion, a decline of ¥0.8 billion (2.0%) from the prior-year period and an operating loss of ¥0.9 billion, adrop of ¥1.6 billion from the positive figure for the prior-year period.
Due to higher earnings achieved by the overseas methanol producing companies, equity in earnings ofaffiliates of ¥4.3 billion was recognized for the three-month period under review, resulting in an ordinary
income of ¥2.9 billion, a drop of ¥1.2 billion (30.6%).

3

Aromatic Chemicals Company
Specialty aromatic chemical products suffered declines in both revenue and earnings. Despite the prior-yearlevels of revenue and earnings achieved by meta-xylenediamine and Nylon-MXD6, the sales volume ofaromatic aldehydes declined.
The purified isophthalic acid business suffered declines in both revenue and earnings because of a decline
in sales prices due to a downturn in the polyester market, which was caused by the prolonged economic
recession in the West and the slowdown of the Chinese economy.
In the first quarter of fiscal 2012, the Aromatic Chemicals Company achieved consolidated net sales of ¥32.0
billion, an increase of ¥0.2 billion (0.8%), an operating loss of ¥0.4 billion, a drop of ¥1.1 billion from thepositive figure for the prior-year period, and an ordinary loss of ¥0.7 billion, a drop of ¥1.1 billion from theordinary income posted a year earlier.

Specialty Chemicals Company
Inorganic chemicals improved in both terms of revenue and earnings due to a higher sales volume forhydrogen peroxide compared with the figure for the prior-year period affected by the major natural disaster inMarch 2011.
Electronic chemicals achieved increases in both revenue and earnings. This positive trend was primarily due
to the growing sales volume of super-pure hydrogen peroxide and the strong sales development achieved byhybrid chemicals for semiconductors.
Engineering plastics achieved growth in both revenue and earnings. While polyacetal suffered from lower
earnings, polycarbonates recovered from the aftereffects of the natural disaster in March 2011 and marked ahigher sales volume.
Polycarbonate sheets and films suffered losses in both revenue and earnings. This is because, despite anincrease in the sales volume of hard-coated sheets, used as a substitute material for smartphone cover glass,the sales volume of films for use in flat panel displays was much lower than the prior-year level.
In the first quarter of fiscal 2012, the Specialty Chemicals Company achieved consolidated net sales of¥30.7 billion, an increase of ¥2.4 billion (8.5%) from the previous year, and an operating income of ¥1.6
billion, a year-on-year decline of ¥0.8 billion (35.5%). Due to ¥0.5 billion equity in earnings of affiliates, theCompany achieved an ordinary income of ¥1.6 billion, a decline of ¥1.2 billion (43.1%).

Information & Advanced Materials Company
Electronic materials posted drops in both revenue and earnings. For BT materials used for semiconductor
packaging, smartphone-related applications steadily grew in both revenue and earnings, whereas
general-purpose products suffered from continued low demand levels.
Thanks to overall success in the domestic food market, oxygen absorbers such as AGELESS® achievedprior-year levels in both revenue and earnings.
In the first quarter of fiscal 2012, the Information & Advanced Materials Company achieved consolidated net
sales of ¥13.3 billion, a decline of ¥1.7 billion (11.8%), an operating income of ¥0.8 billion, a drop of ¥1.2 billion(60.2%), and an ordinary income of ¥0.8 billion, a reduction of ¥1.2 billion (59.4%).

4

OtherIn the first quarter of fiscal 2012, the other business segment achieved consolidated net sales of ¥0.1
billion, an increase of ¥0.0 billion (5.6%), an operating income of ¥0.0 billion, a drop of ¥0.0 billion (13.9%),
and an ordinary income of ¥0.2 billion, a decline of ¥0.0 billion (9.9%).

(2) Consolidated financial position
At the end of the first quarter of fiscal 2012, the MGC Group had ¥606.6 billion in total assets, an increase of¥11.3 billion from the end of fiscal 2011.
Current assets increased by ¥2.1 billion to ¥256.1 billion, primarily due to a decline in trade notes andaccounts receivable and work in progress and increases in cash and deposits as well as merchandise andfinished goods.
Noncurrent assets increased by ¥9.2 billion to ¥350.4 billion. Property, plant and equipment rose by ¥4.1
billion to ¥195.3 billion, thanks to an increase in construction in progress. Investments and other assets were¥151.1 billion, an increase of ¥4.4 billion, due to the posting of equity in earnings and an increase in investment
securities resulting from exchange effects.
Liabilities increased by ¥8.2 billion to ¥311.4 billion from the end of fiscal 2011.
Current liabilities increased by ¥8.8 billion to ¥202.2 billion, primarily due to an increase in trade notes andaccounts payable.
Noncurrent liabilities fell by ¥0.5 billion to ¥109.1 billion, primarily due to a decline in long-term loans
payable.
Net assets were ¥295. 2 billion, ¥3.0 billion higher that the figure for the previous fiscal year. This was
because, despite a reduction of ¥3.7 billion in valuation difference on available-for-sale securities, foreign
currency translation adjustments increased by ¥5.2 billion due to the weak yen, and retained earnings rose by¥1.4 billion. As of June 30, 2012 the shareholders’ equity ratio was 46.9%.

(3) Consolidated business forecasts
Despite some signs of recovery seen at the beginning of the first quarter of 2012, the world economy has
deteriorated increasingly in recent weeks. As in the previous fiscal year, the MGC Group faces challenges inachieving satisfactory levels of revenue and earnings.
With differences among its individual businesses, methanol derivatives, coenzyme Q10, and aromatic
chemicals including purified isophthalic acid, suffers from reductions in sales volumes and margins.
Businesses that anticipated recovery in sales volumes at the beginning of this fiscal year, including those forpolycarbonate films for LCD TVs and BT materials for general-purpose semiconductors, have fallen far short oftheir initial forecasts.
Some high-performance products, such as electronic chemicals, materials for cutting-edge electronics, andpolycarbonate sheets, are seeing steadily increasing sales. Unfortunately, however, these products have been
unable to make up for the losses suffered by other businesses.
MGC is correcting its previous performance forecasts downward because in the second quarter and after,
the difficulties facing the world economy, including the aforementioned public debt crisis in Europe, prolonged
appreciation of the yen, and the slowdown of the Chinese economy, will likely continue.
These performance forecasts assume exchange rates of ¥80=$1 and ¥100=€1.

5Revision of Consolidated Business Forecasts
Six-month period ending September 30, 2012 (April 1 − September 30, 2012)(Millions of yen)
Net sales

Operating

Ordinary

incomeincomeNet income

Net income pershare (¥)

Previously announced forecasts (A)240,000

8,000

16,00013,00028.77

Revised forecasts (B)230,000

4,000

11,000

9,000

19.92

Change (B – A)

(9,000)(4,000)(5,000)(4,000)−Change (%)(3.8)(50.0)(31.3)(30.8)−

230,076

7,500

16,204

12,10926.79

Results for the same previous period(ended September 30, 2011)

Full year ending March 31, 2013 (April 1, 2012 − March 31, 2013)(Millions of yen)
Net sales

Operating

Ordinary

incomeincomeNet income

Net income pershare (¥)

Previously announced forecasts (A)500,000

18,00034,00028,000

61.96

Revised forecasts (B)480,000

13,00028,00023,00050.90

Change (B – A)

(20,000)(5,000)(6,000)(5,000)−(4.0)(27.8)(17.6)(17.9)−

452,217

9,083

26,116

12,327

27.28

Change (%)
Results for the same previous period(ended March 31, 2012)

2. About figures indicated in this summary (including notes)
Changes in accounting policies, changes in accounting estimates or restatement of corrections(Change in the depreciation method)
Starting in the first quarter of fiscal 2012, MGC has switched the method of depreciation of property, plantand equipment, not including buildings and structures (other than accompanying facilities) and leased assets,from the traditional fixed-rate method to the straight-line method.
This change was made following an internal study of the use of property, plant and equipment, which forms
the basis of the MGC Mid-term Management Plan. This study shows that production outputs and operating
ratios will remain stable in the long term. MGC has, therefore, decided that the straight-line method betterreflects the use of these assets within MGC.
Compared with the corresponding figures calculated by the traditional method, operating income for the firstquarter of fiscal 2012 increased by ¥782 million, while the ordinary income, and income before income taxes
and minority interests each increased by ¥785 million.

63. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets
Millions of yen, rounded down
As of March 31, 2012

As of June 30, 2012

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

27,43831,471

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

122,054

120,552ASSETS
Current assets

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

10,241

9,140

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

42,76145,091Work in progress........................................................................

10,732

8,692

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

22,59324,171Other............................................................................................

18,995

17,811

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

(779)

(771)

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

254,037

256,159

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

49,79349,734

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

59,70759,785

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

81,67785,804

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

191,178

195,323

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

104

108

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

3,171

3,885

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

3,275

3,994

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

132,935

134,956

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

14,925

17,266

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

(1,101)(1,058)

Noncurrent assets
Property, plant and equipment

Intangible assets

Investments and other assets

146,758

151,165

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

341,212350,483

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

595,250

606,643

Total investments and other assets

7

Consolidated Quarterly Balance Sheets (contd.)
Millions of yen, rounded down
As of March 31, 2012

As of June 30, 2012

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

69,42776,483

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

90,511

91,967

LIABILITIESCurrent Liabilities

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

1,599

647

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

3,693

2,510

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

28,23230,687

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

193,464

202,297

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

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

56,27755,650

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

7,095

7,564

Noncurrent liabilities

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

1,451

1,530

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

3,512

3,528

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

26,33625,866

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

109,673

109,140

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

303,138

311,438

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

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

35,59335,594

NET ASSETS
Shareholders’ equity

Retained earnings........................................................................

245,083

246,561

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

(8,039)(8,083)

Total shareholders’ equity...................................................

314,607

316,042

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

3,468

(247)

Deferred gains or less on hedges..............................................

(177)

(206)

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

206

206

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

(36,417)(31,117)

Accumulated other comprehensive income

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

(32,920)(31,365)

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

10,424

10,528

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

292,111295,205

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

595,250

606,6438

(2) Consolidated Quarterly Statements of Income
Millions of yen, rounded down
April 1 - June 30, 2011

April 1 - June 30, 2012

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

115,360

115,433

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

95,546

100,344

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

19,81315,088Selling, general and administrative expenses......................

14,252

13,971

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

5,561

1,117

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

30

32

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

658

545

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

5,057
522

5,343
593

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

6,269

6,515

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

490

589

Non-operating income

Non-operating expenses

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

386

431

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

223

512

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

660

819

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

1,761

2,353

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

10,0695,280

Extraordinary income

Gain on sales of noncurrent assets.......................................

−

180

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

−

137

Gain on change in equity.........................................................

17−

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

17

318

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

−

838

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

307

670

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

463

224

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

4

22

Extraordinary losses

Loss on disaster.......................................................................

488−

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

1,264

1,754

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

8,822

3,843

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

1,389

(452)

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

7,433

4,295

379

106

7,053

4,188

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

9

(Consolidated Quarterly Statements of Comprehensive Income)April 1 - June 30, 2011

7,433
Income before minority Interests.....................................................................................

Millions of yen, rounded down
April 1 - June 30, 2012

4,295

Other comprehensive Income(930)
Valuation difference on available-for-sale securities................................................

(3,678)

6
Deferred gains or losses on hedges...........................................................................

(32)

749
Foreign currency statements translation adjustment...............................................
Share of other comprehensive income of associates
1,511
accounted for using equity method.......................................

1,892

1,335
Total other comprehensive Income........................................................................

1,941

8,768
Comprehensive Income........................................................................................................

6,236

3,760

Total comprehensive Income Attributable to8,225
Owners of the parent........................................................................................................

5,743

543
Minority interests...............................................................................................................

493

10

4. Consolidated Quarterly Segment Information(1) Three-month period ended June 30, 2011(April 1 – June 30, 2011)
1. Revenue and earnings by segment
Millions of yen, rounded down
Natural gas
chemicals

Aromatic
chemicals

Specialty
chemicals

Information
andadvancedmaterials

Other(Note 1)

Adjustment(Note 2)

Consolidated(Note 3)

Sales to outside customers ........................................................................
39,867
31,83528,38515,098172−

115,360

Inter-segment sales ....................................................................................
1,876
419
380

0

19

(2,697)−

Total
Segment income (loss)[Ordinary income (loss)]

41,74332,25528,76615,099192(2,697)

115,360

4,249

420

2,881

2,154

320

42

10,069Notes：
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 ¥42 million segment income adjustment consists of ¥95 million loss in inter-segment sales, and ¥138 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, 2012(April 1 – June 30, 2012)
1. Revenue and earnings by segment
Millions of yen, rounded down
Specialty
chemicals

Information
andadvancedmaterials

Other(Note 1)

Adjustment(Note 2)

Consolidated(Note 3)

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

182−

115,433

Inter-segment sales ....................................................................................
1,855
594
230

0

13

(2,694)−Natural gas
chemicals

Total
Segment income (loss)[Ordinary income (loss)]

Aromatic
chemicals

40,91732,67531,02013,318

195(2,694)

115,433

2,950

(752)

1,640

875

288

278

5,280

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.

11