SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS
Results for the Fiscal Year 2011 (from April 1, 2011 to March 31, 2012)

MITSUBISHI GAS CHEMICAL COMPANY, INC.
Stock Code:

4182

URL:

http://www.mgc.co.jp

President:

Kazuo Sakai

May 9, 2012
First section, Tokyo Stock
Listed exchanges:
Exchange
Inquiries: Motoyasu Kitagawa
General Manager
Corporate Communications
Division
Telephone: +81 3 3283-5041

Scheduled date of general shareholders' meeting: June 26, 2012
Scheduled date of filing of the financial report: June 26, 2012
Scheduled date of payment of dividend: June 7, 2012

1. Consolidated Financial Results for the Fiscal Year 2011 (from April 1, 2011 to March 31, 2012)
1) Consolidated Operating Results
Percentage figures represent changes compared to the previous fiscal

Millions of yen, rounded down

year

FY 2011

FY 2010(% 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 (%).......................................

452,217
9,083
26,116
12,327
27.28
27.01
4.4
4.5
2.0

(% change)

0.3(61.1)(28.2)(34.9)

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

17.3
471.2
394.1
225.2

Note: Comprehensive income: FY 2011: ¥8,141 million [(50.8%)]; FY 2010: ¥16,561 million [55.5 %]Equity in earnings of affiliates: FY 2011: ¥20,532 million; FY 2010: ¥17,873 million

2) Consolidated Financial Position

Millions of yen, rounded down

FY 2011
Total assets.....................................................................................
Net assets.......................................................................................
Shareholders’ equity ratio (%)......................................................
Net assets per share (¥)................................................................

595,250
292,11147.3
623.46

FY 2010577,045
288,25748.2
615.25

Note: Shareholders’ equity: FY 2011: ¥281,687 million; FY 2010: ¥278,096 million

3) Consolidated Cash Flows

Millions of yen, rounded down

FY 2011

FY 2010
39,773(24,626)(1,849)46,76837,348(37,274)(9,876)35,701

Cash flow from operating activities..............................................
Cash flow from investing activities...............................................
Cash flow from financing activities......................................
Cash and cash equivalents at end of period.........................
2. Dividends
FY 2010
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 2012(Forecast)
6.00
6.00
12.00
19.4
-

FY 2011

4.00
4.00
8.00
3,616
19.1
1.3

6.00
6.00
12.00
5,421
44.0
1.9

3. Forecasts for the Fiscal Year 2012 (from April 1, 2012 to March 31, 2013)

Millions of yen, rounded
down

Percentage figures represent changes compared to the previous interim period or fiscal year

Six-month period

Full year(% change)

Sales................................................................................................ 240,000
Operating income...........................................................................
8,000
Ordinary income............................................................................. 16,000
Net Income...................................................................................... 13,000
Earnings per share (¥)
28.77

1

4.3
6.7
(1.3)
7.3

(% change)

500,000
18,00034,00028,000
61.96

10.6
98.2
30.2
127.1

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 policies, changes in accounting estimate or restatement of corrections:
1. Changes in accounting policies following revisions to accounting standards: None
2. Changes other than 1: None
3. Changes in accounting estimates: None
4. Restatement of corrections: None
3) Number of shares outstanding (ordinary shares)

FY 2011

FY 2010

Number of shares issued at end of period(including treasury shares)................................................................. 483,478,398
Number of treasury shares at end of period....................................... 31,666,371

483,478,398
31,471,354
452,023,503

Average shares outstanding during period......................................... 451,885,958

Reference: Outline of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year 2011 (from April 1, 2011 to March 31, 2012)
1) Non-consolidated Operating Results
Percentage figures represent changes compared to the previous fiscal year

Millions of yen, rounded down

FY 2011

FY 2010(% change)

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

349,892(882)
18,126
7,390
16.36
16.20

(% change)

2.9
26.3
56.4

2) Non-consolidated Financial Position

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

21.9
3.2

Millions of yen, rounded down

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

FY 2011402,532
183,32645.5
405.76

FY 2010
396,888
181,32745.7
401.16

Note: Shareholders’ equity: FY 2011: ¥183,326 million; FY 2010: ¥181,327 million

2. Non-consolidated Forecasts for the Fiscal Year 2012(from April 1, 2012 to March 31, 2013)
Percentage figures represent changes compared to the previous interims period or fiscal year
Millions of yen, rounded down

Six-month period

Full year(% change)

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

200,000
4,000
11,00010,000
22.13

12.1
132.3
2.9
8.7

(% change)

400,000
9,000
20,00018,000
39.83

14.3
10.3
143.5

(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 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 the fiscal year ending March 2012, the Japanese economy faced great difficulty due to a number of
events, including the major natural disaster in Japan, the strong yen, the public debt crisis in Europe, theslowdown of the Chinese economy, and the major floods in Thailand.
The MGC Group achieved a slight increase in net sales compared with the previous year. Despite
increases in market prices for methanol and other chemicals, sales volumes generally declined due to theimpact of natural disasters in and outside Japan and an economic downturn.
Operating income was substantially lower than the prior-year level. This was primarily due to lower sales
volumes and narrower margins of key products in individual segments and reductions in net sales from someproducts for LCD displays.
Equity in earnings of affiliates grew thanks to excellent sales performance, achieved mainly by overseas
methanol producing companies, while ordinary income was lower than the prior-year level.
Despite a substantial improvement in the figure for extraordinary gain or loss, Group net income was lower
than the prior-year level, since a part of the deferred income taxes was reversed in response to tax revisions
implemented in fiscal 2011.
In fiscal 2011, the MGC Group achieved ¥452.2 billion in consolidated net sales, an increase of ¥1.1 billion(0.3%) from the previous year. Consolidated operating income was ¥9.0 billion, a decline of ¥14.2 billion(61.1%). Equity in earnings of affiliates was ¥20.5 billion, an increase of ¥2.6 billion (14.9%). Consolidated
ordinary income fell by ¥10.2 billion (28.2%) to ¥26.1 billion. Consolidated net income was ¥12.3 billion, a dropof ¥6.6 billion (34.9%).

Results by business segment
Natural Gas Chemicals Company
The methanol business enjoyed an increase in revenue due to increases in market prices caused by strong
demand in China and other markets as well as energy prices that remained high.
Methanol and ammonia derivatives suffered declines in revenue and earnings. Whereas market prices ofammonia increased, those of neopentylglycol fell, and amines suffered from a decline in sales volume.
The enzyme and coenzyme business recorded lower earnings compared with the previous year. The
impact of the strong yen more than offset growth in volumes of coenzyme Q10 sales.
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 fiscal 2011, the Natural Gas Chemicals Company achieved consolidated net sales of ¥153.1 billion, an
increase of ¥7.6 billion (5.2%) from the previous year and an operating income of ¥0.3 billion, a decline of¥0.9 billion (71.5%). Due to improvement in the performance of overseas methanol producing companies,
equity in earnings of affiliates of ¥16.3 billion was posted, resulting in a consolidated ordinary income of ¥15.2
billion, an increase of ¥3.6 billion (31.9%).

Aromatic Chemicals Company
Specialty aromatic chemical products suffered losses in both revenue and earnings. While Nylon-MXD6 andaromatic aldehydes achieved prior-year levels in both revenue and earnings, meta-xylenediamines were3

affected by declining sales volumes in Europe. The negative revenue/earnings development also reflects theimpact of the strong yen and increasing fuel and raw material prices.
The purified isophthalic acid business suffered a drop in earnings compared with the previous year. Despite
increases in both sales volumes and sales prices, the business was affected by the strong yen and increases
in raw materials and fuel prices.
In fiscal 2011, the Aromatic Chemicals Company achieved consolidated net sales of ¥125.3 billion, an
increase of ¥14.1 billion (12.7%) and suffered an operating loss of ¥1.0 billion, a decline of ¥1.3 billion, and an
ordinary loss of ¥2.1 billion, a drop of 1.4 billion from the previous year.

Specialty Chemicals Company
The inorganic chemicals business suffered losses in both revenue and earnings. This negative development
resulted primarily from a decline in the volume of hydrogen peroxide sales as domestic demand for MGC
products, such as those for pulp and paper, remained low following the restoration of operations after thenatural disaster in March 2011.
The electronic chemicals business achieved growth in both revenue and earnings. Despite a reduction in
the volume of sales for super-pure hydrogen peroxide in the domestic market, products for overseas markets
and hybrid chemicals for semiconductors and LCD displays were successful.
Engineering plastics suffered losses in both revenue and earnings. While polyacetal enjoyed steadydemand in overseas markets, polycarbonates were affected by a decline in domestic demand.
Polycarbonate sheets and films suffered losses in both revenue and earnings. This is because, despite thesuccess of hard-coated sheets for cellular phones, sales volumes of films for use in flat panel displays weremuch lower than prior-year levels.
In fiscal 2011, the Specialty Chemicals Company posted consolidated net sales of ¥121.0 billion, a declineof ¥12.9 billion (9.7%) from the previous year and an operating income of ¥7.5 billion, a decline of ¥7.6 billion(50.3%). Due to ¥2.1 billion equity in earnings of affiliates, ordinary income was ¥8.4 billion, a drop of ¥8.6
billion (50.5%).

Information & Advanced Materials Company
Electronic materials posted losses in both revenue and earnings. Immediately after recovery from thedamage caused by the natural disaster in March 2011, Electrotechno enjoyed high levels of incoming orders
for BT materials, used for semiconductor packaging. However, these products were affected by a continued
downturn in demand that followed, above all, for general-purpose products.
Thanks to the overall success in the domestic food market and overseas medical markets, oxygen absorbers
such as AGELESS® surpassed both the revenue and earnings achieved in the previous year.
In fiscal 2011, the Information & Advanced Materials Company achieved consolidated net sales of ¥51.8
billion, a decline of ¥7.6 billion (12.9%), an operating income of ¥3.7 billion, a drop of ¥3.9 billion (50.9%), andan ordinary income of ¥3.7 billion, a reduction of ¥3.7 billion (49.9%).

Other
In the year ending March 31, 2012, the other business segment achieved consolidated net sales of ¥0.8
billion, a year-on-year increase of ¥0.0 billion (10.6%). Operating income fell by ¥0.0 billion (4.6%) to ¥0.2
billion, and ordinary income declined by ¥0.7 billion (30.8%) to ¥1.6 billion.
4

②Consolidated forecasts for the fiscal year 2012
The economic environment remains uncertain due to the public debt crisis in Europe and increases in fueland raw material prices. The domestic and overseas markets, however, are expected to see gradualimprovements in business conditions.
In April 2012, the MGC Group started implementing the new Mid-term Management Plan “MGC Will2014.”
The Group will steadily implement the basic strategies, which include “strengthening the core businesses” and“accelerating development of new businesses,” to speed up the process of improving revenue and earnings.
In fiscal 2012, the Group is expected to see recovery in sales volumes and improvements in profitability
across all segments. One reason is that the supply chain is expected to be restored to normal from theaftereffects of the major natural disaster in Japan and floods in Thailand. Another reason is that the excessive
appreciation of the yen against other currencies is expected to be alleviated. The Group, therefore, expects toachieve higher operating income than in fiscal 2011. Equity in earnings of affiliates will be at the prior-year level
since market prices of methanol will continue to develop favorably.
An internal study of the usage of property, plant and equipment shows that production outputs and operating
ratios will remain stable in the long term. Starting in the fiscal year ending March 2013, therefore, the Groupwill switch the method of depreciation of noncurrent assets from the traditional fixed-rate method to thestraight-line method. This change will reduce depreciation expenses by approximately of ¥6.2 billion.
In fiscal 2012, the Group expects to achieve consolidated net sales of ¥500 billion, an operating income of¥18.0 billion, an ordinary income of ¥34.0 billion, and a net income of ¥28.0 billion. In non-consolidated terms,
MGC forecasts net sales of ¥400 billion, an operating income of ¥9.0 billion, an ordinary income of ¥20.0 billion,
and a net income of ¥18.0 billion.
These performance forecasts assume exchange rates of ¥80=$1 and ¥105=€1.

(2) Consolidated financial position①Assets, liabilities and net assets
As of March 31, 2012, total consolidated assets were ¥595.2 billion, ¥18.2 billion higher than at the end of
the previous fiscal year.
Current assets increased by ¥9.5 billion to ¥254.0 billion. Despite a decline in cash and deposits due topayments for investments in new facilities, major positive contributions came from increases in trade notes
and accounts receivable (as the last day of 2011 happened to be a holiday) and an increase in short-term
investments securities.
Noncurrent assets increased by ¥8.6 billion to ¥341.2 billion, primarily due to an increase in construction inprogress related to the construction of new plants.
Total liabilities increased by ¥14.3 billion to ¥303.1 billion. Current liabilities rose by ¥10.9 billion.
Contributions include a ¥9.3 billion increase in trade notes and accounts payable because the last day of2011 was a holiday. Noncurrent liabilities increased by ¥3.4 billion: Despite a decline in long-term loans
payable, newly issued corporate bonds caused an increase of ¥15.0 billion. Increasing lease liabilities wereanother reason.
Net assets increased by ¥3.8 billion to ¥292.1 billion.
A ¥8.4 billion increase in retained earnings more than offset declines in foreign currency translation
adjustments and valuation difference on available-for-sale securities.
5As of March 31, 2012, the shareholders’ equity ratio was 47.3% (March 31, 2011: 48.2%). Net assets per
share at the end of the fiscal year totaled ¥623.46, compared with ¥615.25 one year earlier.
②Consolidated cash flows
As of March 31, 2012, total cash and cash equivalents were ¥35.7 billion, ¥11.0 billion lower than at the endof the previous fiscal year.
1) Operating activity cash flow
Net cash provided by operating activities fell by ¥2.4 billion from the previous year to ¥37.3 billion. The
primary positive contribution came from an increase in dividends received from equity method affiliates.
Negative contributions include increasing expenses related to damage caused by natural disasters.
2) Investing activity cash flow
Net cash outflow from investing activities increased by ¥12.6 billion from the previous year to ¥37.2 billion.
This was primarily because outflow due to the acquisition of noncurrent assets rose by ¥8.7 billion to ¥34.6
billion.
3) Financing activity cash flow
Net cash outflow from financing activity was ¥9.8 billion, an increase of ¥8.0 billion from the previous year.
This was primarily because outflow due to repayments of corporate bonds surpassed the inflow provided byissuances of corporate bonds. Net cash outflow was also increased by a lower inflow from long-term loans
payable.

(3) Dividend policy, payments and forecasts
MGC view returns to shareholders as a key Group management issue. The Company makes acomprehensive assessment of trends in business performance, capital expenditure plans, financial positionand other factors from a medium- to long-term point of view, aiming to optimally balance the returning of profits
to shareholders via stable dividends with the retention of sufficient earnings to implement measures toincrease future enterprise value. The Company therefore determines dividends using a specific method
combining a performance-linked portion with a stable portion. From the perspective of optimizing capitalefficiency, treasury share acquisitions are considered flexibly in accordance with the market environment.
For the year under review, the Company plans to pay a year-end dividend of ¥6.0 per share, as previously
forecast. In combination with the interim dividend of ¥6.0 per share already paid, this represents an annual
dividend of ¥12.0 per share and a consolidated payout ratio of 44.0%.
For the year ending March 31, 2013 the Company plans an interim dividend of ¥6.0 per share and a
year-end dividend of ¥6.0 per share.

3. Management policy(1) Basic management approach
Based on the MGC Group management philosophy of contributing to the peace and development of society
through the creation of a diverse range of values through chemistry, the MGC Group aims to develop and growsustainably on the global stage as a leading chemicals group with major presence and a strong platform of
proprietary technology while taking CSR in all its activities.

6(2) Mid-term management indices and targets
When developing the previous Mid-term Management Plan “MGC Will 2011” (FY2009-2011), MGC decided
that, in order to achieve further sustainable growth despite increasing economic uncertainty, it was necessary
to formulate and implement a business plan from a long-term perspective. Consideration was first given to
determining what kind of company MGC should aim to become by 2021, the 50th anniversary of its
establishment. As the second step, following “MGC Will 2011,” of achieving the vision for 2021, the Company
introduced the new Mid-term Management Plan “MGC Will2014” in April 2012.
●Mid-term Management Plan “MGC Will2014”
Basic Strategies- Strengthening the core businesses- Restructuring loss-making businesses- Accelerating development of new businesses- Improving total enterprise quality in support of sustainable growth

Quantitative targets
Consolidated parameter
Net sales
Operating income
Ordinary income
ROA (ordinary income/total assets)

Target(FY 2014)¥600 billion¥40 billion¥60 billion
9.0%

Assumptions:Exchange rate: ¥80/USD
Crude oil price (Dubai): 2012: 115 USD/bbl, 2013: 115 USD/bbl, 2014: 120 USD/bbl(3) Key issues
In core businesses, MGC has a wide range of products, from basic chemicals and materials such as
methanol, hydrogen peroxide, and polycarbonates to high-performance products such as electronics
chemicals, sheets/films, BT materials, and the AGELESS® oxygen absorber. This accounts for our tangible
presence in all market segments.
On the other hand, we have concluded that the loss-making businesses require structural reform.
Unexpected deterioration in the business environment and increasing competition have surpassed our efforts
to make these operations profitable within the existing framework. Although we have already set up structuralreform projects in cooperation with the relevant businesses, we will continue to study all possibilities andimplement reform plans as soon as they are ready.

Where development of new businesses is concerned,

MGC has set up the “Next Generation Business Project Group” to reinforce our existing research anddevelopment. Integrating internal resources through a cross-organizational approach, the new organization
has already started its activity, accelerating overall work in this area.
Through these initiatives, MGC commits itself to giving its all to achieving the goals stated in “MGC
Will2014.”

7

4. Consolidated Financial Statements(1) Consolidated Balance Sheets(In ¥ million, rounded down)
FY 2010(As of March 31, 2011)

FY 2011(As of March 31, 2012)

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

47,96427,438Notes and accounts receivable-trade......................................

112,029

122,054

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

613

10,241

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

36,33442,761Work in progress........................................................................

10,312

10,732

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

21,57022,593

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

5,159

3,952

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

11,316

15,042

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

(778)

(779)

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

244,522254,037ASSETS
Current assets

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

128,227

131,088

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

(77,774)(81,295)

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

50,45349,793

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

354,351

360,297

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

(287,466)(300,589)

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

66,88459,707Land...........................................................................................

22,831

22,798

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

18,495

26,419

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

(1,449)(2,556)

Leased assets, net...............................................................

17,04523,862

Construction in progress.........................................................

15,71331,148Other..........................................................................................

30,38931,521

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

(26,494)(27,653)

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

3,895

3,868

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

176,823

191,178

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

56

104

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

39

Intangible assets

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

2,269

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

1,866

25
2,037
2,269
1,107

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

4,231

3,275

130,047

132,935

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

522

905

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

15,564

9,218

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

4,795

4,801

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

(462)(1,101)

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

151,468

146,758

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

332,523

341,212

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

577,045595,2508

Consolidated Balance Sheets (contd.)(In ¥ million, rounded down)
FY 2010(As of March 31, 2011)

FY 2011(As of March 31, 2012)

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

60,10869,427

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

69,84590,511

Current portion of bonds...........................................................

20,000-

LIABILITIESCurrent liabilities

Accrued expenses.....................................................................

11,81913,332

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

1,099

1,695

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

1,869

1,599

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

189

201

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

3,726

3,618

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

2,185

75

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

11,68313,002

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

182,527

193,464

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

-

15,000Long-term loans payable..........................................................

75,85056,277

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

15,88321,700

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

1,037

1,869

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

5,402

7,095

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

450

462

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

617

617

Noncurrent liabilities

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

234

370

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

3,472

3,512

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

3,311

2,766

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

106,260

109,673

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

288,787

303,138

41,97041,970

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

35,59135,593Retained earnings......................................................................

236,597

245,083

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

(7,920)(8,039)306,238

314,607

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

4,197

3,468

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

-

(177)

Total shareholders’ equity
Accumulated other comprehensive income

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

192

206

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

(32,531)(36,417)

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

(28,142)(32,920)

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

10,161

10,424

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

288,257

292,111

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

577,045595,2509

(2) Consolidated Statements of (Comprehensive) Income(Consolidated Statements of Income)(In ¥ million, rounded down)
FY 2010

FY 2011(April 1, 2010 – March 31, 2011)(April 1, 2011 – March 31, 2012)

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

451,033

452,217

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

370,963385,731

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

80,07066,486

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

56,706

57,402

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

23,363

9,083

Non-operating income
Interest income.....................................................................

123

136

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

1,247

1,471

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

17,873

20,532Other......................................................................................

1,778

1,847

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

21,022

23,987

Non-operating expenses
Interest expense...................................................................

2,078

1,981

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

1,528

1,443

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

1,077

608

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

1,700

387

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

1,606

2,533

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

7,992

6,954

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

36,394

26,116730

1,221

Extraordinary income
Insurance income.................................................................
Gain on sales of investment securities-

125

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

-

17

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

751-

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

1,482

1,363

Extraordinary losses
Provision of allowance for doubtful accounts...................

-

682

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

3,003

572

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

296

499

Loss on litigation ..................................................................

-

149

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

598

91

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

6,479

-

1,777

-

1,642

-

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

137-

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

13,935

1,995

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

23,94025,484

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

3,866

3,121

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

(183)

-

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

(49)

8,772

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

3,633

11,893

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

20,306

13,590Minority interests in income....................................................

1,356

1,263

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

18,95012,32710

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

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

FY 2010

FY 2011(April 1, 2010 – March 31, 2011)(April 1, 2011 – March 31, 2012)

20,306

13,590

5,275

(793)

Other comprehensive income
Valuation difference on available-for-sale securities........
Deferred gains or losses on hedges...................................

-

(197)

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

(1,843)(1,159)(7,177)(3,299)(3,745)(5,449)Comprehensive income............................................................

16,561

8,141

15,481

7,199

1,079

941

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 2010(In ¥ million, rounded down)
FY 2011(April 1, 2010 – March 31, 2011)(April 1, 2011 – March 31, 2012)

41,97041,97041,97041,97035,59035,591111
135,59135,593

Shareholders’ equity
Capital stock
Balance at the beginning of current period...............................
Balance at the end of current period.........................................
Capital surplus
Balance at the beginning of current 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
222,394
Balance at the beginning of current period...............................
Changes of items during the period
Dividends from surplus............................................................ ............................... (3,616)
Net income................................................................................ ............................... 18,950
Change of scope of consolidation......................................................................... (134)
Change of scope of equity method........................................ ............................... (996)
Total changes of items during the period............................................................. 14,203
236,597
Balance at the end of current period.........................................
Treasury stock
Balance at the beginning of current period............................... ............................... (7,905)
Changes of items during the period(15)
Purchase of treasury stock.....................................................................................
1
Disposal of treasury stock....................................................... ...............................
Total changes of items during the period.............................................................
Balance at the end of current period.........................................

(14)(7,920)Total shareholders’ equity
Balance at the beginning of current period............................... ............................... 292,048
Changes of items during the period(3,616)
Dividends from surplus............................................................
Net income................................................................................
18,950Change of scope of consolidation......................................................................... (134)
Change of scope of equity method........................................ ............................... (996)(15)
Purchase of treasury stock.....................................................................................
2
Disposal of treasury stock....................................................... ...............................

236,597(4,518)12,327678
8,486
245,083(7,920)
(121)
1
(119)
(8,039)306,238(4,518)12,327678(121)
3

Total changes of items during the period............................................................. 14,190

8,368

306,238

314,607

Balance at the end of current period.........................................

12

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 beginning of current 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 beginning of current 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 beginning of current 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.........................................
Foreign currency translation adjustments
Balance at the beginning of current 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 beginning of current 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 beginning of current 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 beginning of current 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 2010

FY 2011(April 1, 2010 – March 31, 2011)(April 1, 2011 – March 31, 2012)(1,013)

4,197

5,210
5,210
(4,197)

(728)
(728)
3,468

(1)

-

1
1
-

(177)
(177)
(177)

192

192

192

14
14
206

(22,013)(32,531)(10,518)(10,518)(32,531)(3,886)(3,886)(36,417)(22,835)(28,142)(5,306)(5,306)(28,142)(4,778)(4,778)(32,920)

8,881

10,161

1,279
1,279
10,161

263
263
10,424

278,094288,257(3,616)(4,518)18,950
(134)
(996)
(15)
2
(4,027)
10,162
288,257

12,327678(121)
3(4,514)
3,853
292,111

(4) Consolidated Statements of Cash Flows(In ¥ million, rounded down)
FY 2011

FY 2010
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 litigation......................................................................................
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 by equity 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
in change in scope of consolidation......................................................
Payments of loans receivable................................................................
Collection of loans receivable................................................................

14

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

25,484
27,763601(102)(1,373)
91572
149(20,532)642
1,700(1,608)
1,981

137

(99)

6,479

29

1,777

-

296

499

(10,606)(11,154)(6,224)
4,635
(443)

(8,332)
10,164(1,384)

40
(317)

187
1,286

37,128
1,371

26,567
1,609

7,785

18,242(2,178)(4,814)730(249)(1,863)(5,375)592(2,423)39,77337,348(729)
1,072(25,913)
2,682(2,277)
4

(118)
488
(34,625)337(3,083)
193

315

-

(420)
957

(455)
102

Consolidated Statements of Cash Flows (contd.)(In ¥ million, rounded down)
FY 2011

FY 2010
Other, net..................................................................................................
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...................
Proceeds from issuance of bonds.........................................................
Redemption of bonds..............................................................................
Purchase of treasury stock.....................................................................
Cash dividends paid................................................................................
Cash dividends paid to minority shareholders....................................
Other, net..................................................................................................

(318)(24,626)(112)(37,274)(2,351)
11,231(6,469)847(15)(3,616)
(840)
(634)

2,883
3,137
(4,300)14,926(20,000)(121)(4,518)(684)(1,202)

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
from change of scope of consolidation....................................
Cash and cash equivalents at end of period.........................

(1,849)(9,876)(3,048)(1,264)

10,24936,048(11,066)
46,768469-

46,76835,70115

(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 2011 (from April 1, 2011 to March 31, 2012)(In ¥ million, rounded down)
Specialty
chemicals

Information
chemicals andadvancedmaterials

Sales to outside customers................................................................
153,164
125,301
121,047

51,859Natural gas
chemicals

Aromatic
chemicals

Other

Adjustment

Consolidated-

452,217

Net salesInter-segment sales...........................................................................
6,802
1,883

844

1,063

0

82

(9,831)-

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

159,966

127,184

122,11051,860926(9,831)

452,217

Operating income (loss)......

15,216(2,160)

8,467

3,756

1,620

(783)

26,116

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

185,577

113,407

159,425

56,84742,96637,025595,250

7,725

7,738

8,420

3,525

11

342

27,76344
94
0
Amortization of goodwill......... ....................................................................
Amortization of negative
(14)
(22)
(205)
goodwill.................................

1

-

(141)

-

(1)

-

141

(102)

Other items
Depreciation..........................

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

47

36

91

48

0

(88)

136

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

1,084

818

509

139

9

(579)

1,981

Equity in earnings of affiliates.
16,368141
2,188
Investment to equity method
49,662
1,493
9,954
affiliates.................................
Increase of property, plant andequipment and intangible
13,942
4,736
21,661
assets.................................... ....................................................................

-

1,834

-

20,532-

22,666(246)

83,530

1,887

10

185

42,42316

FY 2010 (from April 1, 2010 to March 31, 2011)(In ¥ million, rounded down)Information
chemicals andadvancedmaterials

Natural gas
chemicals

Aromatic
chemicals

Specialty
chemicals

Sales to outside customers.....

145,563

111,182

134,016

59,507763-

451,033

Inter-segment sales........... ….

6,123

2,256

2,026

1

97

(10,507)-

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

151,687

113,439

136,043

59,509860(10,507)451,033

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

11,531(710)

17,101

7,501

2,339

(1,369)36,394

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

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

52

354

0

13

-

(273)

146

(16)

(27)

(228)

(1)

-

273

-

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

48

33

79

51

0

(89)

123

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

1,069

724

492

144

9

(361)

2,078

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

35,400Other

Adjustment

Consolidated

Net sales

Other items

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

17