Summary of Consolidated Financial Results for First Quarter of FY2017
Aug. 2, 2017
Mitsubishi Gas Chemical, Inc (TSE 4182)
1.Summry of Income Statement (April 1- June 30, 2017)
Apr. 1 -June. 30,
2016
134,988

Net Sales

Millions of yen, rounded down
Apr. 1 -June. 30,
Change (%)
2017
144,463
7.0

Operating income

9,937

14,14442.3

Ordinary income

12,302

20,75268.7

Net income attributable to owners of the parent

8,535

18,131

112.4

Comprehensive income(2,502)

19,276－Net income per share (Yen)

39.09

84.02

*The Company conducted a consolidation of shares at a ratio of one share for every two shares effective October
1, 2016. In Accordance with it, Net income per share are caluculated based on the assumption that the shareconsolidation had been carried out at the beginning of the previous fiscal year.
2. Financial Position
Millions of yen, rounded down
As of June. 30, 2017

As of Mar. 31, 2017
Total Assets

738,188734,896

Net Assets

473,370487,004

57.5

59.6

Equity Ratio(%)
3. Dividends
FY2016FY2017(Forecast)Interim dividend per share (Yen)

8.00

22.00

Year-end dividend per share (Yen)

22.00

22.00

Annual Dividend per share (Yen)-44.00(Note) Revision of cash dividend forecast during this period: None
*As the Company conducted a consolidation of shares at a ratio of one share for every two shares effective
October 1, 2016, figures for the Year-end dividends per share for FY 2016 are amounts that take into account theconsolidation of shares, and total annual dividends are shown as “-.”
3. Consolidated Business Forecasts for FY2017 (April 1, 2017 - March 31, 2018)
Millions of yen, rounded down
Six-month period

Full YearNet Sales290,000

580,000

Operating income

24,00044,000Ordinary income

33,00059,000Net income attibutable to owners of the parent

26,00046,000Net income per share (Yen)

120.47213.15(Note) Revision of consolidated business forecasts during this period: Yes
4. Number of Shares Outstanding (Common Stock)
Mar31,2017

June30,2017

Number of shares outstanding at term end (including tresury stock)241,739,199

241,739,199

Number of shares of treasury stock at term-end

25,923,628

25,924,474

Apr. 1 -June. 30,
2016

Apr. 1 -June. 30,
2017

218,321,168

215,815,204

Average shares outstanding during period*The Company conducted a consolidation of shares at a ratio of one share for every two shares effective October
1, 2016. In Accordance with it, average shares outstanding during period are calculated based on the assumptionthat the share consolidation had been carried out at the beginning of the previous fiscal year.
1. These quarterly financial results are not subject to quarterly review procedures. At this time of disclosure ofthese financial results, the quarterly financial statement review procedures based on the Financial Instrument andExchange Law have not been completed.
2. Forecasts, etc., recorded in this document contain forward-looking statements that are based on management’s
estimates, assumptions and projections at the time of publication. A number of factors could cause actual results
to differ materially from expectations.

Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen, rounded down)
As of Mar. 31, 2017 As of June. 30, 2017
ASSETS
Current assets
Cash and deposits
Trade notes and accounts receivable
Short-term investments securities
Merchandise and finished goods
Work in progressRaw materials and supplies
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, netMachinery, equipment and vehicles, net
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

175,017
138,410
139
51,671
10,65232,306
19,544(1,067)
326,674

69,545139,051
66
56,247
9,972
31,256
19,312(1,105)324,345

79,594
81,14757,315
218,057

79,56379,73057,950217,245

4,258
4,111
8,370

4,189
4,319
8,508

175,461
10,307(683)
185,085
411,513738,188

174,836
10,624(664)
184,797
410,551
734,896

Consolidated Balance Sheets (continued)(Millions of yen, rounded down)
As of Mar. 31, 2017 As of June. 30, 2017
LIABILITIESCurrent liabilities
Trade notes and accounts payable
Short-term loans payable
Income taxes payable
Provision
Asset retirement obligations
Other
Total current liabilities
Noncurrent liabilities
Bonds payable
Long –term loans payable
Provision
Projected benefit obligations
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
Non controlling interestTotal net assets
Total liabilities and net assets

2

68,506
74,669
3,394
6,108
98
35,649188,426

66,76870,328
2,059
3,552
48
30,207
172,966

10,00033,495
1,913
5,936
3,832
21,212
76,391
264,817

10,00032,335
1,701
6,635
3,850
20,402
74,925
247,892

41,97035,602357,245(21,829)
412,989

41,97035,602
370,629(21,831)426,371

18,101(0)
222(6,249)(351)
11,722
48,658473,370
738,188

17,740(2)
222(6,362)(178)
11,41849,214
487,004
734,896

2. Consolidated Statements of Income(Millions of yen, rounded down)
Apr. 1 -June. 30, Apr. 1 -June. 30,
2016
2017
134,988
144,463
103,427
108,11231,56036,351
21,623
22,206
9,937
14,144

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange losses
Personnel expenses for seconded employees
Other
Total non-operating expenses
Ordinary incomeExtraordinary income
Gain on sales of investment securities
Compensation received
Total extraordinary income
Extraordinary losses
Loss on sales of investment securities
Loss on liquidation of subsidiaries and affiliates
Total extraordinary losses
Income before income taxes, etc.
Income taxes, etc.
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent

3103
992
4,060
564
5,720

93
1,046
5,774
1,087
8,002

385
1,733
486
751
3,356
12,302

262
509
622
1,394
20,752

201
201

787
787

127
113
241
12,2612,328
9,933
1,398
8,535

21,5401,964
19,575
1,443
18,131

(Consolidated Statements of Comprehensive Income)(Millions of yen, rounded down)
Apr. 1 -June. 30, Apr. 1 -June. 30,
2016
2017
Net income
Other comprehensive Income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency statements translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of associates accounted for using equity
Total other comprehensive Income
Comprehensive income
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

49,933

19,575(1,275)2(6,037)78(5,203)(12,436)(2,502)(2,022)
(480)

(345)
(3)
(186)
(38)
275
(298)
19,276
17,827
1,449

(3)Segment Information(Billions of yen, rounded down）
FY 2016

FY 2017

FY2016

FY 2017

FY 2017

1Q

1Q

Full Year

1-2Q

Full Year

134.9

144.4

9.4

Result556.4

Forecast

Forecast

290.0

580.0

Natural Gas Chemicals

36.2

37.6

1.4

153.5

75.4

153.3

Aromatic Chemicals

47.2

51.2

Specialty Chemicals

41.247.2

4.0

194.4

106.0

211.6

5.9

172.2

91.6

180.3

Information and Advanced Materials

13.2

12.5

(0.7)

50.2

24.4

49.3

Other and Adjustment

(3.0)

(4.3)

(1.2)

(13.9)(7.6)(14.7)

9.9

14.1

4.2

43.7

24.0

44.0

Natural Gas Chemicals

0.6

1.1

0.4

2.5

1.2

2.9

Aromatic Chemicals

4.1

6.4

2.2

18.3

12.2

21.1

Specialty Chemicals

4.5

6.1

1.5

21.6

10.6

19.4

Net sales

Operating income (loss)

Change

1.0

1.2

0.1

4.8

2.0

4.8

(0.4)

(0.8)

(0.3)

(3.6)

(2.2)

(4.3)

Non-operating profit

2.3

6.6

4.2

18.6

9.0

15.0

Ordinary income

Information and Advanced Materials

Other and Adjustment

12.3

20.7

8.4

62.4

33.0

59.0

Natural Gas Chemicals

2.5

4.9

2.3

14.3

7.2

12.8

Aromatic Chemicals

3.8

6.3

2.5

17.5

11.6

19.8

Specialty Chemicals

5.3

7.9

2.5

26.8

12.9

23.2

Information and Advanced Materials

1.2

1.6

0.3

6.1

2.5

5.8

(0.7)

(0.1)

0.6

(2.4)

(1.3)

(2.8)

Other and Adjustment(4)Other Information
FY2013

FY2014FY2015FY2016FY2017
Forecast

25.422.2

30.5

35.0

42.0

Investments(Billions of yen)

Full year
1Q

6.2

3.9

5.9

5.6

6.1

Depriciation & amortization(Billions of yen)

Full year

23.5

23.7

26.7

25.6

27.0

1Q

5.8

5.6

6.5

6.1

6.4

R&D expenditures(Billions of yen)

Full year

16.1

16.8

18.9

19.2

21.0

1Q

3.9

3.9

4.5

4.8

4.5

Number of Staff

Year-end

5,445

8,254

8,176

8,034

8,224

Numbe

ROA (Ordinary income)

4.8%

5.8%

5.9%

8.4%

7.8%

ROA (Ordin

ROE (Net income)

5.0%

12.6%

9.0%

11.9%10.4%

ROE (Ne1Q

99102

121108111

Full year

100110120108110

First half

375

432

301

230

285

Second half

449358230327280Excahnge Rate
(JPY/USD, Average)
Methanol (USD/MT, Asianaverage spot price)5

Qualitative Information
Consolidated Business Results for This Period
Overview of Results(Billions of yen)
FY2016 / 1Q

FY2017 / 1Q

ChangeNet sales

134.9

144.4

9.4

Operating income

9.9

14.1

4.2

Ordinary income

12.3

20.7

8.4

8.5

18.1

9.5

Net income attributable to owners ofthe parent

During the first quarter of the fiscal year ending March 2018 (April 1 - June 30, 2017), the future world
economy remained uncertain. Despite the slow recovery, concerns existed about the future direction ofU.S. policy and increasing geopolitical risks around the globe. The Japanese economy continued toslowly recover due to ongoing improvement in corporate earnings and employment.
The MGC Group revenue increased compared with the previous fiscal year. Specialty and aromatic
chemicals achieved higher sales volumes. Further positive impacts include increased market prices ofmethanol and purified isophthalic acid.
Operating income rose owing to higher sales volumes for specialty and aromatic chemicals as well as
increased market prices of purified isophthalic acid and methanol derivatives.
The Group posted a year-on-year increase in ordinary income. In addition to the higher operating
income, favorable impacts included improved exchange effects and increased equity in earnings ofoverseas methanol producing companies.
The growth in operating income and other positive reasons also enabled the Group to post an increasein net income attributable to parent company shareholders.

6Results by Business Segment
Natural Gas Chemicals(Billions of yen)
FY2016 / 1Q

FY2017 / 1Q

ChangeSales

33.9

34.2

0.2

Operating income

0.6

1.1

0.4

Ordinary income

2.5

4.9

2.3

The methanol business recovered and revenue increased compared with the same period of theprevious year when it faced low market prices.
Methanol and ammonia-based chemicals marked higher earnings because the negative impact ofhigher material prices was more than canceled by increased market prices of neopentylglycol andMMA-based products.
Crude oil and other energy sources increased in both revenue and earnings due to the increased sales
price of crude oil.

Aromatic Chemicals(Billions of yen)
FY2016 / 1Q

FY2017 / 1Q

ChangeSales

46.6

50.5

3.8

Operating income

4.1

6.4

2.2

Ordinary income

3.8

6.3

2.5

Specialty aromatic chemical products posted growth in both revenue and earnings compared with theprevious year, primarily due to higher sales volumes of meta-xylenediamine and aromatic aldehydes.
General-purpose aromatic chemicals increased in both revenue and earnings. Positive factors included
higher market prices of purified isophthalic acid as well as increased sales volume resulting fromrecommissioning a line of meta-xylene (MX) production equipment.
Foamed plastics posted growth in revenue due to higher sales volumes and revised product prices toreflect increased raw material prices. However, increases in fuel and raw material prices led toprior-year-level earnings.

7Specialty Chemicals(Billions of yen)
FY2016 / 1Q

FY2017 / 1Q

ChangeSales

40.9

47.0

6.0

Operating income

4.5

6.1

1.5

Ordinary income

5.3

7.9

2.5

Inorganic chemicals achieved higher revenue and earnings compared with the previous year, primarily
due to growth in the sales volume of liquid chemicals used in semiconductor production.
The engineering plastics business marked an increase in both revenue and earnings. Major positivefactors included growth in sales volumes for polycarbonates, polyacetals and polycarbonate sheets andfilms.

Information & Advanced Materials(Billions of yen)
FY2016 / 1Q

FY2017 / 1Q

ChangeSales

13.2

12.5

0.7

Operating income

1.0

1.2

0.1

Ordinary income

1.2

1.6

0.3

Electronic materials decreased in revenue due to the dissolution of Japan Circuit Industrial Co., in
September 2016, while improving earnings due to steady sales volumes of BT materials forsemiconductor packaging, which represent this segment's core product category.
Oxygen absorbers such as AGELESS® achieved prior-year-level earnings thanks to the stabledevelopment of sales, which was most apparent in exports.

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Consolidated Business Forecasts
Revision of consolidated business forecasts
Half year ending September 30, 2017 (April 1, 2017－ September 30, 2017)(Billions of yen)

Net sales

OperatingincomeOrdinary
incomeNet income
attributable toowners of the parent

280.0

18.0

27.0

21.0

97.31Revised forecasts (B)

290.0

24.0

33.0

26.0

120.47

Change (B – A)

10.0

6.0

6.0

5.0

-

Previously announced
forecasts (A)Net income
per share (¥)

Full fiscal year 2017 (April 1, 2017 － March 31, 2018)(Billions of yen)

Net sales

Operatingincome

Ordinary
incomeNet income
attributable toowners of the parent

580.0

37.0

55.0

43.0

199.24

Revised forecasts (B)

580.0

44.0

59.0

46.0

213.15

Change (B – A)

0.0

7.0

4.0

3.0

-

Previously announced
forecasts (A)Net income
per share (¥)

For the first half of the current fiscal year, the MGC Group now expects higher figures for net sales, operating
income, ordinary income and net income attributable to parent company shareholders compared with theprevious forecasts. This is partly because of growth in sales volumes for specialty and aromatic chemicals andpartly because of higher market prices for purified isophthalic acid and methanol derivatives.
For the full year of fiscal 2017 as well, the Group expects to post a higher operating income than the previous
forecast because the forecast for the first half is now likely to surpass the previous figure. However, increases
in full-year ordinary income and net income attributable to parent company shareholders will be smaller,
because lower market prices of methanol will cause reduced equity in earnings of overseas methanol
producing companies.
For the unelapsed period of the fiscal year, these performance forecasts assume exchange rates of ¥110=$1(same as in the previous forecast) and ¥125=€1 (¥5 lower).
(End)

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