Overview of Business Results forFirst Quarter of Fiscal Year Ending March 2006 (Consolidated)
August 3, 2005
Name of Company: Mitsubishi Gas Chemical Company, Inc.
(Company Code Number: 4182, Share traded: TSE, OSE, and NSE)
(URL http://www.mgc.co.jp)
Name of representative:
Name of contact person:

1.

Hideki Odaka, President
Yasuhiro Sato, General Manager, Corporate Communications
Division
Phone: 03-3283-5041

Important bases for presenting consolidated quarterly report1)

Adoption of convenient accounting method: Adopted
Some income tax calculations are based on this convenient method.

2)

Changes in accounting methods since latest fiscal year: Changed“Accounting standards for impairment of fixed assets” adopted.
Classification of business segments adopted for description of segment
information changed.

3)

2.

Change in number of consolidated subsidiaries and equity method appliedcompanies: Changed
One new consolidated subsidiary is included.

Summary of consolidated financial results for First Quarter of FY2005 (For period from
April 1, 2005 to June 30, 2005)(1)

Consolidated operating results

Net salesFirst quarter, FY2005
First quarter, FY2004
FY2004 (for reference)

million yen101,620
91,907
388,589%
10.6
16.2

Note: Figures are rounded down to the nearest million yen.
Net income for theOperating income
Ordinary income
first quarter
million yen% million yen% million yen%
7,574
31.2
9,938
22.3
7,058
23.5
5,773
236.9
8,127
129.3
5,713
–
30,86837,72623,348Net income forthe quarter per
share, fully
dilutedYen senYen senFirst quarter, FY2005
15.26–
First quarter, FY2004
12.35–
FY2004 (for reference)
50.41–
Note: (1) Percentage figures for net sales and operating income indicate percentage of change ona year-to-year basis. The year-to-year percentage change for the first quarter of FY2004
Net income forthe quarter pershare1

is not indicated for net income, since net income for the first quarter of FY2003 was notdisclosed.
(2) Investment profit on equity method
First quarter of FY2005:
2,534 million yen
First quarter of FY2004:
2,758 million yen
FY2004:
11,834 million yen(3) Average number of shares outstanding during term (consolidated)
First quarter of FY2005: 462,396,933 sharesFirst quarter of FY2004: 462,551,768 shares
FY2004:462,495,163 shares[Qualitative Information regarding Consolidated Operating Business]
The MGC group’s business results for the first quarter of FY2005 (from April 1,2005 to June 30, 2005) were: net sales of 101.6 billion yen (a year-on-yearincrease of 9.7 billion yen, or up 10.6%), 7.5 billion yen for operating income (ayear-on-year increase of 1.8 billion yen, or up 31.2%), 9.9 billion yen for ordinary
income (a year-on-year increase of 1.8 billion yen, or up 22.3%), and 7.0 billion
yen for net income for the quarter (a year-on-year increase of 1.3 billion yen, orup 23.5%), showing improvements in all aspects from the previous year’s firstquarter.
On the whole, demand remained steady during the first quarter, and both domestic
and overseas sales increased. Operating income also increased over the previousyear’s first quarter, as a result of product price corrections, cost improvements,etc., while the purchase prices for methanol and petrochemical materials remainedhigh.
[Natural gas chemicals]
Methanol has maintained high prices, because a tight supply-demand balance hascontinued. Overseas methanol companies maintained a steady performance.
Methanol derivative products also remained steady in general, owing toproduction price corrections, reductions in fixed costs, etc., while some products
targeting China, etc. showed a sense of stagnation.
As a consequence, net sales and operating income were 27.5 billion yen and 1.5
billion yen respectively.
[Aromatic chemicals]
Although the price of raw material xylene has remained high, production prices ofparaxylene have also risen. Therefore net sales have increased over the previous
year’s first quarter. MX nylon and other methaxylene products have also
maintained a steady performance.
As a consequence, net sales and operating income were 31.0 billion yen and 1.3
billion yen respectively.

2

[Specialty chemicals]With regard to hydrogen peroxide, sales for new industrial uses and for paper andpulp have showed a steady performance. As for chemicals for use in theelectronics industry, growth in chemicals for use in the manufacture ofsemiconductors contributed to increases both in sales and profits. Favorable
performance was also seen in engineering plastics, polycarbonate and otherplastics for the electrical, electronics and automobile industries, as well as
polycarbonate sheets and films.
As a consequence, net sales and operating income were 28.3 billion yen and 2.4
billion yen respectively.
[Advanced materials]
While materials for printed circuit boards showed a trend toward recovery indemand that had previously been shrinking since the latter half of the previousyear, total sales decreased over the previous year’s first quarter. For oxygen
absorbers, “AGELESS®” exhibited a performance nearly the same as the firstquarter of the previous year.
As a consequence, net sales and operating income were 14.4 billion yen and 2.0
billion yen respectively.
(2)

Consolidated financial position
Shareholders’equitymillion yen
million yen
First quarter, FY2005
498,813
209,313First quarter, FY2004
487,664
185,222
FY2004 (for reference)
494,577
203,306
Note: Number of shares outstanding at the term end
First quarter of FY2005:
462,389,317 sharesFirst quarter of FY2004:
462,542,864 shares
FY2004:462,403,064 shares
Total assets

Shareholders’Equity ratio%
42.0
38.0
41.1

Shareholders’equity per share
yen sen452.68400.44439.60[Consolidated Cash Flows]
CF from
CF from
CF from
Cash and cash
operatinginvestment
financingequivalents at
activities
activities
activities
the term end
million yen
million yen
million yen
million yen
First quarter, FY2005
325-3,412-4,162
21,645First quarter, FY2004––––
FY2004 (for reference)
29,119-15,629-16,536
28,696
Note: Statements of cash flows were not disclosed for the first quarter of FY 2004.

[Qualitative Information regarding Consolidated Financial Position]

3

[Consolidated financial position]
Total assets as of the end of the first quarter of FY2005 increased by 4.2 billion
yen over the previous fiscal year end to 498.8 billion yen, largely due to increases
in accounts receivable and inventories.
Total liabilities as of the end of the first quarter were 282.1 billion yen, a decreaseof 1.9 billion yen from the previous fiscal year end, owing largely to a decrease indebts.
Shareholders’ equity stood at 209.3 billion yen, a increase of 6.0 billion yen fromthe previous fiscal year end, and shareholders’ equity per share increased from439.60 yen to 452.68 yen.
[Consolidated cash flows]
Net cash from operating activities resulted in an inflow of cash of 0.3 billion yen,because the total increase in cash arising from net income before income tax forthe first quarter, depreciation and amortization, etc. exceeded the total decreasecaused by increases in accounts receivable, inventories, etc. Net cash used ininvesting activities resulted in an outflow of 3.4 billion yen, due to the acquisitionof fixed assets and so on. Net cash from financing activities resulted in an
outflow of 4.1 billion yen mainly due to repayments of interest-bearing liabilities.
In summary, total cash balance as of the end of the first quarter of FY2005 was21.6 billion yen.

3.

Consolidated Business Outlook for FY2005 (For the period from April 1, 2005 toMarch 31, 2006)
Results for the first quarter of FY2005 were generally as forecast, so that interim andannual forecasts for FY2005 remain unchanged as announced on May 16, 2005.

4