SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTSFirst Half Results for the Fiscal Year Ending March 31, 2009
(April 1, 2008 - September 30, 2008)

MITSUBISHI GAS CHEMICAL COMPANY, INC.
Listed exchanges:

Tokyo, Osaka, Nagoya 1st sections

Stock Code:

4182

URL:

http://www.mgc.co.jp

President:

Kazuo Sakai

November 7, 2008
Inquiries:

Yasuhiro Sato
General Manager
Corporate Communications Division

Telephone:+81 3 3283-5041

Scheduled date of payment of dividend: December 5, 2008

1. Summary of Consolidated Results1) Operating results
Millions of yen, rounded down
Percentage figures represent changes compared to the previous fiscal year

First half ended
September 30, 2008

First half ended
September 30, 2007(% change)

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

(% change)

269,204
9,620
19,951
14,56531.52
30.84

250,637
22,63531,943
20,778
44.96
43.99

8.2
14.1
8.6
△ 5.92) Financial position
Millions of yen, rounded down

As of September 30, 2008
Total assets..................................................................
Net assets ....................................................................
Shareholders’ equity ratio (%) ......................................
Net assets per share (¥)...............................................

As of March 31, 2008

606,419
315,96650.5
663.13

601,386
312,02150.3
654.25

Note: Shareholders’ equity as of September 30, 2008: ¥306,400 million; as of March 31, 2008: ¥302,314 million

2. Cash Dividends

Interim dividend per share (¥) ......................................
Year-end dividend per share (¥)...................................
Annual dividend per share (¥) ......................................

Fiscal year ending
March 31, 2009
8.00
8.00 (Forecast)
16.00 (Forecast)Fiscal year ended
March 31, 2008
8.00
8.00
16.00

Note: There has been no change in the forecast dividend.

3. Forecasts for the Fiscal Year Ending March 31, 2009
Millions of yen, rounded down
Percentage figures represent changes compared to the previous fiscal year

Fiscal year ending
March 31, 2009(% change)

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

525,000
18,00032,00025,00054.10

1.1△ 62.0△ 48.2△ 37.8

Note: The full-year forecasts have been revised.

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4. Other Information
1) Transfer of important subsidiaries during the period under review (Transfers of certain subsidiaries resulting inchanges in the scope of consolidation): None
2) Adoption of simplified accounting methods: Adopted

3)

Changes in accounting methods, procedures and presentation in the preparation of these financial statements*(Key items mentioned in Material Items Forming the Basis for the Preparation of the Consolidated Financial Statements
for the Fiscal Year)
1. Changes following revisions to accounting standards: Yes
2. Other changes: Yes

4) Number of shares outstanding (ordinary shares)
First half ended
September 30, 2008
Number of shares outstanding at end of period(including treasury shares) (shares) ............................
Number of treasury shares at end of period ..................
Average shares outstanding during period .....................

483,478,398
21,429,732

Year ended
March 31, 2008
483,478,398
21,396,891
462,166,163 *

462,066,257*First half ended September 30, 2007

Notice regarding the appropriate use of the financial forecasts
1. This document contains revisions to the interim and full year business forecasts announced on November 7, 2008.
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.
3. As of the current consolidated fiscal year, Accounting Standards for Quarterly Reporting (Accounting Standards Board of Japan Article 12) andApplication Guidelines related to Accounting Standards for Quarterly Reporting (Accounting Standards Board of Japan Article 14) will beapplied. Furthermore, MGC Group prepares its quarterly consolidated financial statements in accordance with the Regulations Concerning
Quarterly Financial Statements.

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Note: All comparisons are with the first half 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(“MGC Group”) for the first half (April 1, 2008 to September 30, 2008) of the fiscal year
ending March 31, 2009 increased 7.4%, or ¥18.5 billion, to ¥269.2 billion. Consolidated
operating income decreased 57.5%, or ¥13.0 billion, to ¥9.6 billion. Consolidated ordinary
income decreased 37.5%, or ¥11.9 billion, to ¥19.9 billion, and consolidated net income forthe six months decreased 29.9%, or ¥6.2 billion, to ¥14.5 billion.
The slowdown in the overall domestic economy has become more evident, having
continued from the second half of the previous fiscal year, and the operating environment for
MGC Group has become increasingly harsh. Raw materials and fuel prices continued toincrease and remain at high levels, with the price of crude oil continuing to rise to levels
above those of the previous fiscal year and reaching a record high in July. There was also
intensifying competition and economic slowdown both in Japan and overseas.
The strategic focus of MGC Group in this environment was to strengthen businessfundamentals and pursue further growth in line with the aims of Kyoso 2008, the Group’s
medium-term management plan, which is now in its final year, while also endeavoring toimprove profitability by increasing sales volumes, revising prices and other such measures.

Results by business segment
Natural Gas Chemicals Segment
Net sales in this business segment rose 25.0%, or ¥16.6 billion, to ¥83.3 billion. Operating
income increased by 138.3%, or ¥0.5 billion, to ¥0.8 billion.
In the methanol business, although the methanol market slowed slightly from the beginningof the six-month period under review, having surged since the early fall of 2007, sales prices
were maintained at levels above the previous first half, supported by robust demand from
China for fuel applications. This resulted in increased revenue and earnings. However,income from overseas methanol producing companies accounted for by the equity method
was roughly in line with the previous first half due the effect of yen appreciation.
In methanol and ammonia derivatives, despite the implementation of sales price revisions inthe second quarter, the impact of rising raw material and fuel costs, as well as otherincreases in fixed costs such as repair costs, resulted in an overall increase in revenue anddecrease in earnings.

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Revenue and earnings from the sale of enzymes and coenzymes were roughly in line withthe previous first half, despite an increase in sales volumes of Coenzyme Q10, due to a
decline in Coenzyme Q10 sales prices that continued until the first quarter.
Revenue and earnings for natural gas and other energy sales increased slightly due to highcrude oil prices. No natural gas deposits the development of which would be economically
viable have been found in recent exploration.

Aromatic Chemicals Segment
Net sales in this business segment increased 11.1%, or ¥7.8 billion, to ¥78.3 billion, while
operating income decreased 76.5%, or ¥4.9 billion, to ¥1.5 billion.
In the specialty aromatic chemicals business, sales volumes of meta-xylenediamine
increased as a result of the full-scale operation of new production equipment, resulting inhigher revenue despite a strengthening of the yen. However, rising raw material costs meantthat higher costs were only partially passed on in sales prices, and higher depreciation costs
resulted in lower earnings.
Market conditions for isophthalic acid worsened as a result of intensifying competition
stemming from enhancements to supply capacity by competitors. As a result of this and theimpact of yen appreciation, A. G. International Chemical, Co., Inc., an MGC Groupsubsidiary that manufactures and sells purified isophthalic acid, recorded substantially lowerearnings, despite securing revenue roughly level with the previous first half.

Specialty Chemicals Segment
Net sales in this business segment decreased 2.8%, or ¥2.0 billion, to ¥71.3 billion, andoperating income decreased by 55.3%, or ¥3.8 billion, to ¥3.0 billion.
In the inorganic chemicals business, despite price increases aimed at improving profitability,
higher raw material and fuel costs and lower sales volumes resulted in higher revenue andlower earnings.
Revenue and earnings from electronic chemicals were higher than the previous first half, asa result of firm demand.
In the engineering plastics business, polyacetal performed steadily. However, in addition to asoftening in demand for polycarbonate, lower sales volumes of films used in themanufacture of flat panel displays had a significant impact on this business, resulting inlower revenue and earnings.

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Information & Advanced Materials Segment
Net sales in this business segment fell 10.1% or ¥4.0 billion, to ¥35.6 billion, while operating
income decreased by 51.1%, or ¥4.4 billion, to ¥4.2 billion.
Revenue and earnings from sales of materials for printed circuit boards declined comparedwith the previous first half, during which there had been strong demand. This was due toweaker demand, mainly for semiconductor packaging applications used in mobile phones
and memory, as well as other factors such as higher depreciation costs at manufacturingsubsidiary Electrotechno Co., Ltd. due to the installation of a new production facility, lower
sales of CSP products (the main business of printed circuit board manufacturing subsidiaryJapan Circuit Industrial Co., Ltd.) and a strengthening of the yen.
Revenue and earnings from sales of oxygen absorber AGELESS® were roughly in line withthe previous first half, reflecting intensifying competition among leading industry participantsin the food packaging sector, although AnaeroPack® and other non-food industry products
performed steadily.

2. Consolidated financial position
Total assets as of September 30, 2008 were ¥606.4 billion, ¥5.0 billion higher than at theend of the previous fiscal year. This was primarily because of increases in tangible fixed
assets, along with other factors.
Interest-bearing debt increased ¥4.2 billion to ¥154.8 billion. Net assets were ¥315.9 billion,
an increase of ¥3.9 billion on the previous year, mainly due to higher retained earnings. The
shareholders’ equity ratio was 50.5%.

3. Consolidated forecasts for the fiscal year ending March 31, 2009
In light of the recent economic situation, MGC Group has revised the consolidated forecast
announced on August 5, 2008.
Net sales for the fiscal year ending March 31, 2009 are expected to decline due tostagnating sales of polycarbonate sheets and films and materials for printed circuit boards,
intensifying competition in the purified isophthalic acid market, a strong yen, and otherfactors prevailing from the third quarter onward. As a result, operating income for the fullyear is also expected to decrease. Ordinary income for the full year is now expected to be

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lower than the initial forecast, due to the deteriorating profitability of polycarbonates, asoftening in the methanol market and lower earnings at equity method affiliates due to theimpact of a strong yen and foreign exchange losses.
The revisions to the consolidated full-year forecasts announced on August 5, 2008 areshown below.

Fiscal year ending March 31, 2009

(Millions of yen, except net income per share)

Net income

Operating

Ordinary

incomeincome540,000

21,00039,00031,00067.09

525,000

18,00032,00025,00054.10△15,000△3,000△7,000△6,000-

△2.8

△14.3

△17.9

△19.4-

519,32947,36661,75940,20987.01

Net sales

Net incomeper share(¥)

Previously announced forecasts(A)(announced August 5, 2008)

Revised forecasts(B)
Change in yen(B-A)
Change in %Results for previous fiscal year
(ended March 31, 2008)

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