SUMMARY OF FINANCIAL STATEMENTS (Consolidated)
Results for the fiscal year ended March 31, 2008
MITSUBISHI GAS CHEMICAL COMPANY, INC.
Stock Code:May 9, 2008
Listed exchanges: Tokyo, Osaka, Nagoya 1st sections
Inquiries: Yasuhiro Sato
General Manager
Corporate Communications Division
Telephone: +81 3 3283-5041

4182

http://www.mgc.co.jp
President:
Kazuo Sakai
Scheduled date of general shareholders' meeting: June 26, 2008
Scheduled date of payment of dividend: June 9, 2008
Planned date of filing of the financial report: June 26, 2008

1. Consolidated financial results for the fiscal year ended March 31, 2008
1) Consolidated operating results
Percentage figures represent changes compared to the previous fiscal year

Millions of yen, rounded down

Fiscal year ended
March 31, 2008

Fiscal year ended
March 31, 2007(% change)

Sales ............................................................................
Operating income.........................................................
Ordinary income...........................................................
Net income...................................................................
Earnings per share (¥) .................................................
Fully diluted earnings per share (¥)..............................
Return on equity (%) ....................................................
Ratio of ordinary income to total assets (%).................
Ratio of operating income to sales (%) ........................

519,32947,36661,75940,209
87.01
85.13
13.7
10.2
9.1

(% change)

7.6
12.2
0.1
0.4

482,608
42,22061,72340,044
86.63
85.64
15.0
10.5
8.7

9.7
8.3
22.4
21.6

Note: Equity in earnings of affiliates: Fiscal year ended March 31, 2008: ¥ 21,312 million; Fiscal year ended March 31, 2007: ¥ 23,200 million2) Consolidated financial position

Millions of yen, rounded down

As of March 31, 2008
Total assets..................................................................
Net assets ....................................................................
Shareholders’ equity ratio (%) ......................................
Net assets per share (¥)...............................................

As of March 31, 2007

601,386
312,02150.3
654.25609,965
292,69646.5
613.64

Note: Shareholders’ equity at end of period: Fiscal year ended March 31, 2008: ¥ 302,314 million; Fiscal year ended March 31, 2007: ¥ 283,631
million3) Consolidated cash flows

Cash flow from operating activities...............................
Cash flow from investing activities ...............................
Cash flow from financing activities ...............................
Cash and cash equivalents at end of period ................

Millions of yen, rounded down

Fiscal year ended
March 31, 2008
40,394(20,907)(22,251)
37,235

Fiscal year ended
March 31, 2007
21,797(14,039)(8,819)41,266

2. Dividends
Fiscal year ended
March 31, 2007
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 (%) ...................................

Fiscal year ended
March 31, 2008

6.00
8.00
14.00
6,471
16.2
2.4

8.00
8.00
16.00
7,393
18.4
2.5

Fiscal year ending
March 31, 2009
(Forecast)
8.00
8.00
16.00
-21.1
--

3. Forecasts for the fiscal year ending March 31, 2009 (April 1, 2008 to March 31, 2009)
Percentage figures represent changes compared to the previous interim period or fiscal year

Millions of yen, rounded downInterim period ending
September 30, 2008

Fiscal year ending
March 31, 2009(% change)

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

270,000
14,00022,50017,50037.87

7.7(38.1)(29.6)(15.8)(% change)

540,000
30,00045,00035,00075.74
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4.0
(36.7)(27.1)(13.0)

4. Other1) Transfer of important subsidiaries during the period (Transfers of certain subsidiaries resulting in changes in the scope ofconsolidation): No
2) 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
3) Number of shares outstanding (ordinary shares)
1. Number of shares outstanding at end of the fiscal year (including treasury shares):
March 31, 2008: 483,478,398 shares

March 31, 2007: 483,478,398 shares

2. Number of treasury shares at end of the fiscal year:
March 31, 2008: 21,396,891 shares

March 31, 2007: 21,268,505 shares

Reference: Outline of non-consolidated financial results
1. Non-consolidated financial results for the fiscal year ended March 31, 2008
1) Non-consolidated operating results
Percentage figures represent changes compared to the previous fiscal year

Millions of yen, rounded down

Fiscal year ended
March 31, 2008

Fiscal year ended
March 31, 2007(% change)

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

372,865
19,98536,85628,518
61.71
60.38

5.0
1.5
17.1
40.62) Non-consolidated financial position

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

(% change)

355,235
19,692
31,47820,28043.87
43.37

8.8(11.3)
22.1
37.6

Millions of yen, rounded down

As of March 31, 2008
373,713
185,98249.8
402.49As of March 31, 2007
389,722
175,75745.1
380.26

Note: Shareholders’ equity: Fiscal year ended March 31, 2008: ¥ 185,982 million; Fiscal year ended March 31, 2007: ¥ 175,757 million

2. Non-consolidated forecasts for the fiscal year ending March 31, 2009 (April 1, 2008 to March 31, 2009)
Percentage figures represent changes compared to the previous interim period or fiscal year

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

Interim period ending
September 30, 2008(% change)
197,000
12.0
7,000(26.8)
15,000(25.3)
13,000(15.0)
28.13

Millions of yen, rounded down

Fiscal year ending March 31, 2009
389,000
16,00031,50027,50059.51(% change)
4.3(19.9)(14.5)(3.6)

This document has been translated from the original Japanese as a guide for non-Japanese investors. It contains forward-looking statements basedon a number of assumptions and beliefs made by management in light of information currently available. Actual financial results may differ
materially depending on a number of factors, including changing economic conditions, legislative and regulatory developments, delay in new
product launches, and pricing and product initiatives of competitors.

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COMMENTARY ON RESULTS
Note: All comparisons are with the interim period of the previous fiscal year unless stated otherwise.

(1) Overview of results for this period
The overall domestic economy continued to recover gradually during the fiscal year underreview, with strong capital expenditure and exports, particularly during the first half. However,with consumer consumption weakening, the economic outlook is uncertain, anddevelopments toward the closing stages of the fiscal year, such as the sub-prime loan crisisand the strengthening of the yen, indicate that a slowdown is likely.
Despite continued rises in crude oil prices to record levels, as well as increases andsustained highs in raw material costs, the operating environment for the Mitsubishi Gas
Chemical Company, Inc. group of companies (“MGC Group”) was favorable due to strong
exports and continued, though gradual, domestic economic recovery.
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, while endeavoring to improve profitability by increasing
sales volumes, revising prices and other such measures.
Consolidated net sales for MGC Group for the fiscal year ended March 31, 2008 rose
¥36.72 billion to ¥519.32 billion. Consolidated operating income rose ¥5.14 billion to ¥47.36
billion. However, consolidated ordinary income increased by only ¥0.03 billion to ¥61.75billion, influenced principally by a decline in equity method income following the one-off
increase of the previous year which resulted from special dividend payments from affiliatedcompanies, along with foreign exchange losses and other factors. Consolidated net income
for the fiscal year increased ¥0.16 billion to ¥40.2 billion, reflecting factors such as therecording of impairment losses associated with Coenzyme Q10, an increase in taxes paidby subsidiaries, and also the absence of extraordinary losses resulting from revisions to thedepreciation of fixed assets that impacted net income in the previous year.
On a non-consolidated basis, net sales rose ¥17.62 billion to ¥372.86 billion.
Non-consolidated operating income increased ¥0.29 billion to ¥19.98 billion, andnon-consolidated ordinary income rose ¥5.37 billion to ¥36.85 billion, mainly as a result offoreign exchange losses and an increase in dividend payments from affiliated companies.
Net income increased ¥8.23 billion to ¥28.51 billion.
Results by business segment
Natural Gas Chemicals Segment
In the methanol business, there was a periodic softening in supply and demand conditions
at the start of the fiscal year as global manufacturing plant operations stabilized. However,
the market surged again in early fall of 2007, due to a decline in the operating ratios at themanufacturing plants of a major competing industry participant overseas and, as a result,
MGC’s revenue and earnings grew both in Japan and at overseas subsidiaries. Equity inearnings of overseas methanol companies also increased substantially due to average

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prices that were higher than those of the previous fiscal year.
Overall demand for methanol and ammonia derivatives was strong, and revenue andearnings grew due to the successful passing on of higher raw material and fuel costs toprices.
Revenue and earnings from sales of enzymes and coenzymes decreased despite increased
sales volumes of Coenzyme Q10, reflecting market decline, mainly in exports.
In natural gas and other energy products, revenue and earnings both increased on the backof the continued high price of crude oil.
Consolidated net sales in the Natural Gas Chemicals Segment for the year ended March 31,
2008 increased ¥10.52 billion to ¥146.6 billion, and operating income increased ¥0.84 billion
to ¥3.32 billion.
Aromatic Chemicals Segment
Revenue from sales of commodity aromatic chemicals was roughly level with the previous
fiscal year, as a result of price increases, which helped to offset soaring fuel costs andincreased costs for mixed xylene. Para-xylene operations were reorganized in the second
half of the fiscal year to create a structure more resistant to market fluctuation risks.
Revenue in specialty aromatic chemicals was higher than in the previous year, supported bystrong demand for both meta-xylenediamine (MXDA), which is used as an epoxy curing
agent among other applications, and nylon-MXD6, the superior gas barrier properties ofwhich are resulting in its increasing use in PET bottle manufacture. However, depreciationand other increases in fixed costs accompanying completed construction of the MXDA
production facility at the Mizushima plant resulted in lower earnings. At MGC subsidiary A.G.
International Chemical Co., Inc., tight global supply for isophthalic acid, which is used in
PET bottles and coating materials, among other applications, led to strong sales, which
resulted in substantial increases in revenue and earnings.
Consolidated net sales in the Aromatic Chemicals Segment for the year ended March 31,
2008 increased ¥10.2 billion to ¥143.36 billion, and operating income increased ¥4.66 billion
to ¥12.06 billion.
Specialty Chemicals Segment
Revenue from sales of inorganic chemicals for industrial applications increased due tohigher sales volumes of hydrogen peroxide for use in the paper pulp industry. However, theimpact of higher raw material and fuel costs and competition with the products of otherindustry participants overseas resulted in lower earnings.
Firm overall demand for electronic chemicals helped to offset the impact of higher raw
material and fuel costs and inventory adjustment by some customers of high-value added
products. This resulted in increased revenue and earnings in line with the previous fiscalyear.

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In engineering plastics, revenues increased, supported by continued solid demand frommajor customers in the electronic and automotive industries. However, earnings decreased
due to higher raw material and fuel costs and a softening supply and demand forpolycarbonate from the middle of the fiscal year.
Although revenue increased at consolidated subsidiary MGC Filsheet Co., Ltd., profitability
worsened due to downward revisions of prices for the polycarbonate sheets and films that it
manufactures, along with an increased depreciation burden.
Consolidated net sales in the Specialty Chemicals Segment for the year ended March 31,
2008 increased ¥10.42 billion to ¥151.63 billion, and operating income decreased ¥1.03
billion to ¥16.16 billion.
Information & Advanced Materials Segment
In materials for printed circuit boards, although operations were affected by increases in thecost of copper foil and other raw materials, an upturn in orders during the fiscal year underreview and an increase in demand for memory semiconductor applications, particularly inthe first half of the year, resulted in increased revenues and earnings. At manufacturingsubsidiary Electrotechno Co., Ltd., measures to boost the production capacity of equipment
for copper clad laminate and other products were completed according to plan. Continued
steady sales were recorded in LE sheets, the entry sheets used in mechanical drilling,
mainly for applications in motherboards and printed circuit boards for mobile phones. In
addition to this, improvements to production technology, leading to cost reductions,contributed to higher revenues and earnings (combining the results of manufacturingsubsidiary Yonezawa DIA Electronics Co., Ltd.).
Revenues and earnings from sales of AGELESS® and other oxygen absorbers increased,
supported by higher exports and robust sales of AnaeroPack® and other such products tothe non-food sector; however, competition further intensified in the domestic food sector, themain market for these products. As a result, earnings were roughly level with the previous
fiscal year.
Consolidated net sales in the Information & Advanced Materials segment for the year ended
March 31, 2008 increased ¥5.74 billion to ¥76.81 billion, and operating income increased¥0.76 billion, to ¥15.22 billion.
Other
Consolidated net sales in the Other business segment for the year ended March 31, 2008
decreased ¥0.16 billion, to ¥0.9 billion, and operating income increased ¥0.01 billion to¥0.49 billion.
(2) Consolidated Forecasts for the Fiscal Year Ending March 31, 2009
A slowdown in the U.S. economy stemming from the sub-prime loan crisis, along with poorlevels of domestic consumption recovery, are prompting concerns of deceleration orstagnation in the domestic economy. In addition, the operating environment is likely toPage 5 of 6

worsen, with increases and sustained high costs for crude oil and other fuels as well as raw
materials and construction materials, and a continued strong yen.
Taking this economic situation into consideration, MGC Group intends to continue
implementing the basic strategies outlined in the Group’s medium-term management plan
Kyoso 2008, namely to deploy an in-depth differentiation strategy for further growth and tostrengthen the management infrastructure, with the aim of achieving sustainable growth asa highly profitable, R&D-driven corporate group.
Although the healthy sales volumes of isophthalic acid and electronic materials recorded
during the fiscal year under review are expected to continue to expand in the next fiscal year,
a slowing in the market appears likely. In addition, higher costs are expected to result inlower operating income year on year. These costs are expected to include impairment costsassociated with the operation of new facilities, repair and improvement costs incurred inlarge scale renovations of aging facilities, and higher fixed costs such as retirement benefit
expenses. Equity method income is expected to worsen due to market decline and theimpact of a strong yen on foreign exchange translation, despite the increased sales volumes
that are likely to result from the operation of new facilities at overseas methanol
manufacturing subsidiaries.
Consolidated full-year forecasts for the year ending March 31, 2009 are for net sales of¥540.0 billion, ordinary income of ¥45.0 billion, and net income of ¥35.0 billion.
Non-consolidated forecasts are for net sales of ¥389.0 billion, ordinary income of ¥31.5billion, and net income of ¥27.5 billion.
The ¥/US$ exchange rate envisaged for the fiscal year is ¥100/US$1.

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