SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS
Results for the Fiscal Year 2013 (from April 1, 2013 to March 31, 2014)
MITSUBISHI GAS CHEMICAL COMPANY, INC.
Stock Code:

4182

URL:

http://www.mgc.co.jp

President:

Toshikiyo Kurai

May 8, 2014
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 25, 2014
Scheduled date of filing of the financial report: June 25, 2014
Scheduled date of payment of dividend: June 6, 2014

1. Consolidated Financial Results for the Fiscal Year 2013(from April 1, 2013 to March 31, 2014)
1) Consolidated Operating Results
Percentage figures represent changes compared to the previous fiscal year

Millions of yen, rounded down

FY 2013

FY 2012(% 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 (%) ...........................

534,670
11,41630,735
14,971
33.14
5.0
4.8
2.1

(% change)

14.3
(0.0)
11.2
-

Note: Comprehensive income: FY 2013: ¥37,541 million [326.0%];
FY 2012: ¥8,812 million [8.2%]
Equity in earnings of affiliates: FY 2013: ¥20,466million;
FY 2012: ¥19,045 million

2) Consolidated Financial Position

467,979
11,421
27,651(7,793)(17.25)
(2.8)
4.6
2.4

3.5
25.7
5.9
-

Millions of yen, rounded down

FY 2013
Total assets ....................................................................
Net assets .......................................................................
Shareholders’ equity ratio (%).........................................
Net assets per share (¥) .................................................
Note: Shareholders’ equity: FY 2013: ¥312,506million;
FY 2012: ¥283,855 million

FY 2012613,908
294,895
46.2
628.40658,117324,13847.5
691.883) Consolidated Cash Flows

Millions of yen, rounded down

FY 2013
Cash flow from operating activities .................................
Cash flow from investing activities ..................................
Cash flow from financing activities ..................................
Cash and cash equivalents at end of period ...................

FY 2012
31,169(30,818)(14,356)
26,907

27,182(29,883)
7,124
37,3102. Dividends
FY 2012Interim 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 2014(Forecast)
7.00
7.00
14.00
25.3
-

FY 2013

6.00
6.00
12.00
5,421
1.9

6.00
6.00
12.00
5,420
36.2
1.8

3. Forecasts for the Fiscal Year 2014 (from April 1, 2014 to March 31, 2015)

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

260,000
5,000
16,00012,000
26.57

1

(2.5)
(50.1)(25.8)(35.3)(% change)

540,000
14,00035,00025,000
55.35

1.0
22.6
13.9
67.0

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: Yes
2. Changes other than 1: None
3. Changes in accounting estimates: None
4. Restatement of corrections: None
3) Number of shares outstanding (ordinary shares)
Number of shares issued at end of period(including treasury shares) .........................................
Number of treasury shares at end of period ..................
Average shares outstanding during period ....................

FY 2013

FY 2012483,478,398
31,800,380
451,694,282

483,478,398
31,769,134
451,727,688

Reference: Outline of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year 2013 (from April 1, 2013 to March 31, 2014)
1) Non-consolidated Operating Results
Percentage figures represent changes compared to the previous fiscal year

Millions of yen, rounded down

FY 2013

FY 2012(% change)

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

417,265
7,285
27,478
5,147
11.40
-

13.1
(10.9)(0.8)-

2) Non-consolidated Financial Position

368,831
8,176
27,700(7,788)(17.24)
-

5.4
52.8
-

Millions of yen, rounded down

FY 2013397,812
177,09244.5
392.08FY 2012397,658
174,95344.0
387.31

Total assets ....................................................................
Net assets ......................................................................
Shareholders’ equity ratio (%) ........................................
Net assets per share (¥) .................................................
Note: Shareholders’ equity: FY 2013: ¥177,092million; FY 2012: ¥174,953 million

2. Non-consolidated Forecasts for the Fiscal Year 2014(from April 1, 2014 to March 31, 2015)
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
3,000
16,50011,50025.46(5.0)(51.5)
7.7(14.0)(% change)

400,000
8,000
30,00020,000
44.28

(4.1)
9.8
9.2
288.5

(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
In the consolidated fiscal year under review (fiscal 2013), the Japanese economy showed signs of slow
recovery. Despite concerns over an economic downturn in the overseas markets due to slower growth of
emerging economies, Japan enjoyed improvements in the export environment due to the weaker yen andthe stable domestic demand.
The MGC Group achieved an increase in revenue compared with the previous fiscal year. Major
contributions came from an overall increase in sales prices due to the weaker yen and the higher market
price of methanol.
Group operating income was at the prior-year level. Positive contributions came from the improved
profitability of export products thanks to the weaker yen, and from lower fixed costs for meta-xylene andpurified isophthalic acid due to the structural reform conducted during the previous fiscal year. These
effects were however offset by factors such as the negative impact of the deteriorating businessenvironment of engineering plastics.
Group ordinary income rose from the prior-year figure. Despite the suspension of operation at themethanol producing company in Brunei and the weaker performance of engineering plastics affiliates, theweaker yen and higher market prices of methanol helped increase the equity in earnings of affiliates,
especially those of the methanol producer in Saudi Arabia, compared with the previous year.
The Group achieved a significant improvement in net income in fiscal 2013. Despite the negative impact of
the impairment of noncurrent assets recognized by the MGC polycarbonate subsidiary in China,
extraordinary items improved due to lower expenses for the improvement of business structure. There wasalso an improvement in income taxes-deferred compared with the figure for the previous fiscal year, which
was affected by a major reversal of deferred income taxes.
In fiscal 2013, the MGC Group achieved ¥534.6 billion in consolidated net sales, an increase of ¥66.6
billion (14.3%) from the previous year. Consolidated operating income was ¥11.4 billion, a drop of ¥0.0 billion(0.0%). Equity in earnings of affiliates was ¥20.4 billion, an increase of ¥1.4 billion (7.5%). Consolidated
ordinary income grew by ¥3.0 billion (11.2%) to ¥30.7 billion. The Group achieved a consolidated net incomeof ¥14.9 billion, an improvement of ¥22.7 billion from the previous fiscal year’s negative figure.
Results by business segment
Natural Gas Chemicals Company
The methanol business achieved an increase in revenue but posted lower earnings. Although the weaker
yen and an increase in market prices pushed up sales prices, higher purchasing costs undermined the
profitability of the business.
Methanol and ammonia-based chemicals posted growth in both revenue and earnings. Despite increases
in the prices of major materials including methanol, positive effects came from higher sales prices of exports
due to the weaker yen and a reduction in repair costs for ammonia-related equipment.
Crude oil and other energy sources achieved prior-year-level earnings. This is because the reduction in thesales volume of crude oil was offset by increases in unit sales price.
Some of the subsidiaries in this segment also achieved growth in earnings. This was due to improved3

profitability resulting from the structural reform that has been conducted since fiscal 2012.
In fiscal 2013, the Natural Gas Chemicals Company achieved consolidated net sales of ¥185.2 billion, an
increase of ¥31.2 billion (20.3%) from the previous year and an operating income of ¥2.7 billion, an increaseof ¥0.9 billion (51.6%). Equity in earnings of affiliates of ¥16.9 billion, coming primarily from overseas
methanol producing companies, resulted in an ordinary income of ¥18.4 billion, up ¥2.4 billion (15.4%).
Aromatic Chemicals Company
Specialty aromatic chemical products posted year-on-year growth in both revenue and earnings. Not only
were exports of core products more profitable due to the weaker yen, but also there was an increase in thesales volume of aromatic aldehydes.
General-purpose aromatic chemicals such as purified isophthalic acid grew in both revenue and earnings.
This was partly because fixed costs were reduced by the structural reform conducted during fiscal 2012.
Another reason was that the weaker yen made exports more profitable.
In fiscal 2013, the Aromatic Chemicals Company achieved consolidated net sales of ¥139.5 billion, an
increase of ¥11.3 billion (8.9%), an operating income of ¥2.9 billion, growth of ¥2.1 billion (289.9%), and an
ordinary income of ¥2.1 billion, an improvement of ¥3.0 billion.
Specialty Chemicals Company
Inorganic chemicals achieved prior-year-level earnings. A decline in the profitability of domestic hydrogen
peroxide operations was offset by the improved profitability of the Chinese subsidiary.
Electronic chemicals achieved growth in both revenue and earnings. This positive trend was primarily due
to steadily growing sales volume of super-pure hydrogen peroxide and higher sales volumes of hybrid
chemicals for LCD applications in overseas markets.
In the engineering plastics business, polycarbonates suffered a significant decline in earnings as they wereaffected by shrinking margins due to the excess supply and sluggish demand. The polyacetal business also
posted lower earnings because of shrinking margins due to the reductions in sales volumes and an increasein the price of methanol as a raw material.
Polycarbonate sheets and films marked higher net sales and lower earnings. Despite a higher sales
volume of films for use in flat panel displays, there was an increase in fixed costs due partly to new
acquisitions of equipment.
In fiscal 2013, the Specialty Chemicals Company posted consolidated net sales of ¥153.3 billion, an
increase of ¥21.7 billion (16.5%) from the previous year and an operating income of ¥3.8 billion, a decline of¥3.1 billion (45.3%). Due to ¥1.3 billion equity in earnings of affiliates, ordinary income was ¥3.7 billion, adrop of ¥2.9 billion (44.7%).
Information & Advanced Materials Company
In electronic materials, BT materials for semiconductor packaging, which represent MGC’s core segment
for electronic materials, achieved an increase in revenue thanks to the weaker yen and higher sales volumes,
notably for smartphone-related applications. However, earnings remained at the prior-year level due to thecost required for the launch of the second production site in Thailand.
Oxygen absorbers such as AGELESS® achieved higher revenue and prior-year-level earnings. Positiveeffects included stable sales in the domestic and overseas food markets as well as higher sales prices of4

exports due to the weaker yen and the growth of non-food applications. These contributions were offset byhigher costs for purchasing from overseas production sites.
In fiscal 2013, the Information & Advanced Materials Company achieved consolidated net sales of ¥55.6
billion, an increase of ¥2.3 billion (4.4%), an operating income of ¥4.3 billion, an increase of ¥0.1 billion(3.5%), and an ordinary income of ¥4.8 billion, growth of ¥0.4 billion (10.5%).
Other
In the year ending March 31, 2014, the other business segment achieved consolidated net sales of ¥0.8
billion, a year-on-year decline of ¥0.0 billion (7.1%). Operating income fell by ¥0.0 billion (23.5%) to ¥0.2
billion, and ordinary income rose by ¥0.3 billion (22.2%) to ¥1.9 billion.
Consolidated forecasts for the fiscal year 2014
Despite the expectations for continued recovery of the Japanese economy, the world economy warrants no
optimism, as it has downturn risks relating to U.S. monetary policy and developments of emerging economies
including China.
Under these circumstances, Mid-term Management Plan "MGC Will2014," which the Group started
implementing in April 2012, will unfortunately find it difficult to achieve its consolidated management targets in
its final fiscal year ending March 2015. Nevertheless, the Group will work as one to implement measures inaccordance with basic strategies, including "strengthening the core businesses" and "restructuringloss-making businesses."In fiscal 2014, the Group expects to achieve higher operating income than in fiscal 2013. Expected
reductions in earnings for electronic chemicals and aromatic chemicals will be more than offset by improved
profitability of the polycarbonate producing subsidiary in China, an increase in the margin for sales ofpurchased methanol, and expanded sales of oxygen absorbers such as AGELESS®. Equity in earnings ofaffiliates will also increase, due mainly to the scheduled recovery of the operation of the methanol producer in
Brunei.
The Group anticipates to achieve consolidated net sales of ¥540.0 billion, an operating income of ¥14.0
billion, an ordinary income of ¥35.0 billion, and a net income of ¥25.0 billion. In non-consolidated terms, MGC
forecasts net sales of ¥400.0 billion, an operating income of ¥8.0 billion, an ordinary income of ¥30.0 billion,
and a net income of ¥20.0 billion.
These performance forecasts assume exchange rates of ¥100=$1 and ¥130=€1.

(2) Consolidated financial position
Assets, liabilities and net assets
As of March 31, 2014, total consolidated assets were ¥658.1 billion, ¥44.2 billion higher than at the end of
the previous fiscal year.
Current assets increased by ¥26.5 billion to ¥287.9 billion, primarily due to increases in cash and deposits
and in merchandise and finished goods.
Noncurrent assets increased by ¥17.6 billion to ¥370.1 billion, since a decline in property, plant, andequipment due to an impairment loss was more than offset by an increase in investment securities. The
latter came from the assessment of the market value of equity holdings, the posting of equity in earnings ofaffiliates, and exchange effects.

5Total liabilities increased by ¥14.9 billion to ¥333.9 billion. Current liabilities fell by ¥16.5 billion due
primarily to a reduction in short-term loans payable. Noncurrent liabilities increased by ¥31.5 billion due toincreases in long-term loans payable and bonds payable.
As of March 31, 2014, the shareholders’ equity ratio was 47.5% (March 31, 2013: 46.2%). Net assets per
share at the end of the fiscal year were ¥691.88, compared with ¥628.40 one year earlier.
Consolidated cash flows
As of March 31, 2014, total cash and cash equivalents were ¥37.3 billion, ¥10.4 billion higher than at theend of the previous fiscal year.
1) Operating activity cash flow
Net cash provided by operating activities fell by ¥3.9 billion from the previous year to ¥27.1 billion. Thiswas due primarily to an increase in income before income taxes and minority interests as well as a
reduction in trade notes and accounts payable.
2) Investing activity cash flow
Net cash outflow from investing activities was ¥29.8 billion, ¥0.9 billion less than the outflow for theprevious year. This was primarily due to a decline in expenses caused by the acquisition of noncurrent
assets.
3) Financing activity cash flow
Compared with the negative figure for the previous year, net cash flow from financial activities improvedby ¥21.4 billion to ¥7.1 billion. This was primarily due to an income generated by issuing bonds.

(3) Dividend policy, payments and forecasts
MGC views 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
to increase 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.
For the year ending March 31, 2014 the Company plans an interim dividend of ¥7.0 per share and a
year-end dividend of ¥7.0 per share62. Management policy(1) Basic management approach
Based on the MGC Group management philosophy of contributing to the peace and development ofsociety through the creation of a diverse range of values through chemistry, the MGC Group aims todevelop and grow sustainably on the global stage as a leading chemicals group with major presence and astrong platform of proprietary technology while taking CSR in all its activities.

(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 wasnecessary 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 anniversaryof its establishment. As the second step, following “MGC Will 2011,” of achieving the vision for 2021, theCompany 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
By the fiscal year ending March 2015 (fiscal 2014), the Mid-term Management Plan is aimed at achieving
financial targets on a consolidated basis: net sales of ¥600.0 billion, an operating income of ¥40.0 billion, an
ordinary income of ¥60.0 billion, and ROA (ordinary income/total assets) of 9.0%. Unfortunately, however,the difficult business environment will make it difficult to achieve these targets. Nevertheless, the MGC
Group will continue to pursue sustainable growth by implementing measures in accordance with the basic
strategies stated in the Mid-term Management Plan.

(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 sheets/films,
electronics chemicals, BT materials, and the AGELESS® oxygen absorber. This accounts for our tangible
presence in all market segments. The Group will continue to strengthen and expand core businesses. In
the segment of chemicals and material products, low-cost production will be enhanced by obtaining accessto material sources, producing overseas, and improving processes. In high-performance products, adevelopment platform will be strengthened that allows MGC to offer differentiated products while closely
exchanging information with major global users.
On the other hand, the MGC polycarbonate subsidiary in China inevitably recognized an impairment of
noncurrent assets. The Chinese company faced difficulty in remaining profitable and expected to take time
to recover. As far as loss-making operations are concerned, MGC will reform its business structure at a fast
pace in response to changes in the business environment.

7

In developing new businesses, MGC set up the “Next Generation Business Project Group” to reinforce
its existing research and development. Integrating internal resources through a cross-organizational
approach, this organization has been operating successfully. In the future, it will accelerate its work evenfurther.
To achieve sustainable growth, we need to improve management quality further in all respects. To"improve total enterprise quality in support of sustainable growth," we will squarely face challenges such as
developing global human resources, improving the ability of the manufacturing floor, production with low
environmental impact, cost reductions, higher group-wide business efficiency.

83. Consolidated Financial Statements(1) Consolidated Balance Sheets(In ¥ million, rounded down)
FY2012FY2013(As of March 31, 2013) (As of March 31, 2014)ASSETS
Current assets
Cash and deposits ...................................................
Trade notes and accounts receivable ......................
Short-term investments securities ............................
Merchandise and finished goods..............................
Work in progress ......................................................
Raw materials and supplies .....................................
Other ........................................................................
Allowance for doubtful accounts...............................
Total current assets ........................................
Noncurrent assets
Property, plant and equipment
Buildings and structures, net..................................
Machinery, 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 ................................................................

928,888
127,843140
50,172
10,60727,261
17,275(792)
261,397

38,772
129,2392,130
60,527
10,31927,232
20,508(808)
287,92155,57069,78070,101
195,453

59,27971,637
191,311

3,374
3,374

2
3,166
3,169

146,7627,180(260)
153,683
352,511
613,908

167,296
11,499(81)
175,714370,195
658,117

Consolidated Balance Sheets (contd.)(In ¥ million, rounded down)
FY2013
FY2012(As of March 31, 2013) (As of March 31, 2014)
LIABILITIESCurrent Liabilities
Trade notes and accounts payable ............................
Short-term loans payable...........................................
Income taxes payable ................................................
Provision ....................................................................
Other..........................................................................
Total current liabilities ...........................................
Noncurrent liabilities
Bonds payable ...........................................................
Long –term loans payable .........................................
Provision for retirement benefits ................................
Other provision ..........................................................
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-salesecurities ...................................................................
Revaluation reserve for land ......................................
Foreign currency translation adjustment ....................
Remeasurements of defined benefit plans .................
Total accumulated other comprehensive income .......
Minority interests ....................................................
Total net assets .................................................
Total liabilities and net assets...........................

10

73,907
84,627
1,358
4,318
31,225
195,438

71,66475,8591,570
5,015
24,788178,896

15,00061,183
7,549
2,949
4,207
32,682
123,574
319,01325,00083,481
1,220
9,232
36,148155,081333,978

41,97035,595
231,882(8,094)
301,353

41,97035,595
240,111(8,119)309,557

8,607

11,384

206(26,311)－(17,497)
11,039294,895
613,908206(7,305)(1,337)
2,949
11,632
324,138
658,117

(2) Consolidated Statements of Income(In ¥ million, rounded down)
FY 2013
FY 2012(April 1, 2013 – March(April 1, 2012 – March
31, 2014)
31, 2013)
Net sales ....................................................................
467,979
534,670
Cost of sales ...........................................................
400,011
460,592
67,96774,077Gross profit ...............................................................
Selling, general and administrative expenses.........
56,54562,660Operating income ....................................................
11,421
11,416
Non-operating income
Interest income .......................................................
173
200
1,344
1,735
Dividend income .....................................................
19,045
20,466Equity in earnings of affiliates .................................
3,215
3,942
Other.......................................................................
Total non-operating income ..............................
23,77926,344Non-operating expenses
Interest expense......................................................
2,581
2,995
1,443
1,466
Personnel expenses for seconded employees ........
903
750
Loss on disposal of noncurrent assets ....................
2,621
1,812
Other .......................................................................
7,549
7,025
Total non-operating expenses .............................
Ordinary income ...................................................... ..
27,65130,735Extraordinary income
Gain on sales of noncurrent assets .........................
180
361
266
Gain on sales of investment securities ....................
163
238
Insurance income ....................................................
Loss (gain) on liquidation of subsidiaries and183
associates ...............................................................
1,050
Total extraordinary income ...............................
344
Extraordinary losses
Business structure improvement expenses ............
15,4391,526
1,049
Loss on valuation of investment securities..............
838
Provision for compensation expenses ....................
592
448
Environmental improvement expensive ..................
165
Loss on litigation .....................................................
116
Loss on disposal of noncurrent assets ....................
54
11,648
Impairment loss .......................................................
339
Compensation for products .....................................
119
Loss on fire accident ...............................................
14,082
Total extraordinary losses.................................
18,256
Income before income taxes and minority interests
9,739
17,703
Income taxes, etc. .............................................................
17,076
2,951
Net income or loss before minority interests ...............
(7,336)
14,751
Minority interests in income ........................................
456
(219)
Net income or loss .....................................................
(7,793)
14,97111

(Consolidated Statements of Comprehensive Income)(In ¥ million, rounded down)
FY 2012FY 2013(April 1, 2012 – March 31,(April 1, 2013 – March 31,
2013)
2014)
(7,336)
14,751
Income before minority Interests................................
Other comprehensive Income
Valuation difference on available-for-sale
5,088
2,720
securities ................................................................
197
Deferred gains or losses on hedges .......................
Foreign currency statements translation
3,380
5,504
adjustment ..............................................................
Share of other comprehensive income of
7,483
14,565
associates accounted for using equity method .......
16,14922,790Total other comprehensive Income ....................
8,812
37,541
Comprehensive Income .........................................
Total comprehensive Income Attributable to
Owners of the parent .................................................
Minority interests ........................................................

12

7,526
1,286

36,754786

(3) Consolidated Statements of Changes in Net Assets

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
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.......................
Increase (decrease) in cash and cash
equivalents resulting from change in fiscal
period of consolidated subsidiaries ..................
Total changes of items during the period ............
Balance at the end of current period ......................
Treasury stock
Balance at the beginning of current period .............
Changes of items during the period
Purchase of treasury stock .................................
Disposal of treasury stock...................................
Total changes of items during the period ............
Balance at the end of current period ......................
Total shareholders’ equity
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.......................
Increase (decrease) in cash and cash
equivalents resulting from change in fiscal periodof consolidated subsidiaries ..............................
Purchase of treasury stock .................................
Disposal of treasury stock...................................
Total changes of items during the period ............
Balance at the end of current period ......................

13(In ¥ million, rounded down)
FY 2012FY 2013(April 1, 2012 – March (April 1, 2013 – March
31 2013)31 2014)
41,97041,97041,97041,97035,59335,5951
135,59535,595245,083

231,882(5,421)(7,793)
13-(5,420)14,971--(1,322)(13,200)
231,882

8,228
240,111(8,039)(56)
1(54)(8,094)(8,094)(24)(24)(8,119)314,607(5,421)(7,793)13-

301,353(5,420)14,971--(1,322)(56)
3(13,254)
301,353(24)
8,203
309,557

Consolidated Statements of Changes in Net Assets (contd.)(In ¥ million, rounded down)
FY 2013
FY 2012(April 1, 2013 –(April 1, 2012 – March
March 31, 2014)31, 2013)
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
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 ......................
Remeasurements of defined benefit plans
Balance at the beginning of current period.............
Changes of items during the period
Net changes of items other than shareholders’it
Totalchanges 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’it
Totalchanges 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

14

3,468

8,607

5,138

2,777

5,138
8,607

2,777
11,384

(177)

-

177

-

177
-

-

206

206

-

-

206

206

(36,417)(26,311)

10,10619,006

10,106(26,311)19,006(7,305)-(1,337)(1,337)(1,337)(32,920)(17,497)

15,422
15,422(17,497)

20,446
20,446
2,949

10,424

11,039 2

615

592

615
11,039592
11,632

292,111294,895

Dividends from surplus ...........................................
Net income .............................................................
Change of scope of consolidation ...........................
Change of scope of equity method ..........................
Increase (decrease) in cash and cash equivalents
resulting from change in fiscal period of consolidated
subsidiaries
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 ..........................

15(5,421)(7,793)
13-(5,420)14,971(1,322)

(56)
3

(24)
-

16,03821,0392,784
294,895

29,242
324,138(4) Consolidated Statements of Cash FlowsNet 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 .........................................................
Business structure improvement expenses ..................
Provision for compensation expenses ..........................
Impairment losses ........................................................
Loss (gain) on liquidation of subsidiaries andassociates.....................................................................
Loss on fire accident .....................................................
Loss on litigation ...........................................................
Equity in (earnings) losses of affiliates..........................
Increase (decrease) in allowance for doubtful
accounts .......................................................................
Increase (decrease) in provision for retirement
benefits .........................................................................
Increase (decrease) in net defined benefit liability ........
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 andlong-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 ............................................................

16(In ¥ million, rounded down)
FY 2012FY 2013(April 1, 2012 – March(April 1, 2013 –31 2013)
March 31 2014)
9,739
23,096
672
(73)
(201)
15,439838
54

17,703
23,528
287
(168)
(281)
1,526
11,648(185)

165(19,045)

119(20,466)

(833)

460

439

-

(1,518)2,581

346(1,936)
2,995

(7)

(221)

1,056

23

592

448

(2,012)

2,092(11,322)

6,833

1,739

(10,521)

261

95

(33)
(3,940)17,6871,440(49)(8,298)12,312
1,926

17,945

18,798(2,498)(4,313)982(75)(3,112)(3,024)281-

31,16927,182

Consolidated Statements of Cash Flows (contd.)

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 ...............
Payments of loans receivable .......................................
Collection of loans receivable .......................................
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 issuance of bonds ................................
Redemption of bonds....................................................
Purchase of treasury stock ...........................................
Cash dividends paid .....................................................
Cash dividends paid to minority shareholders ..............
Other, net......................................................................
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....
Increase (decrease) in cash and cash equivalents
resulting from change in fiscal period of
consolidated subsidiaries ......................................
Cash and cash equivalents at end of period........

17(In ¥ million, rounded down)
FY 2013
FY 2012(April 1, 2013 –(April 1, 2012 – March
31 2013)
March 31 2014)
(10)

-

124

22

(30,105)
448
(870)
3
(1,153)695
49(30,818)(29,403)
997
(396)
649
(552)
249
(1,445)(29,883)(7,935)24,601(23,181)(56)(5,421)(635)(1,727)(14,356)

1,514
27,835(24,537)9,952(35)(5,420)(474)(1,710)
7,124

3,605

5,548

(10,399)

9,972

35,701

26,907

1,605

-

-

430

26,90737,310(5) Segment information
1. Segment overview
Mitsubishi Gas Chemical employs an in-house company system, which was adopted to clarify the
responsibilities of each business and improve efficiency. Each company conducts its business according toan independent strategy formulated for its products and services.
This structure makes it possible to obtain separate financial information for each segment. Financial
information is presented for the four companies subjected to periodical examinations that are conducted by
the Board of Directors in order to optimize the allocation of management resources and evaluation of
performance: Natural Gas Chemicals, Aromatic Chemicals, Specialty Chemicals, and Information &Advanced Materials.
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 andother inorganic chemicals for industrial use, electronic chemicals, and engineering plastics.
The Information & Advanced Materials Company manufactures and sells products such as materials forprinted circuit boards, printed circuit boards, and oxygen absorber such as AGELESS®.
2. Business segments
FY 2013 (from April 1, 2013 to March 31, 2014)(In ¥ million, rounded down)
Natural gas
chemicals

Aromatic
chemicals

Specialty
chemicals

Information
and advanced
materials

Sales to outside customers ...............

185,276

139,596

153,382

55,601

813-

534,670

Inter-segment sales .........................

9,568

2,040

1,176

0

95

( 12,882 )-Total ............................

194,845

141,636

154,559

55,602908( 12,882 )

534,670

income (loss) .....

18,444

2,189

3,708

4,883

1,901

( 391 )

30,735

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

217,997

101,943

195,038

64,44855,83222,857658,117

Other

Adjustment

Consolidated

Net sales

Operating

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

6,334

4,127

9,550

3,123

10

381

23,528

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

－

－

24

1

-

(26 )

-

Amortization of negative goodwill .......

( 13 )( 11 )( 169 )--

26

( 168 )

79

20

156

46

22

( 124 )

200

Interest income....................
Interest expense ..................

1,236

0

1,496

132

4

(685)

2,995

Equity in earnings of affiliates

16,937

27

1,396

-

2,132

-

20,466

Investment to equity method affiliates .

66,272

1,514

11,657-28,974( 239 )

108,179

Increase of property, plant andequipment and intangible assets ........

4,523

2,377

11,237

6,691

2

577

25,40918

FY 2012 (from April 1, 2012 to March 31, 2013)(In ¥ million, rounded down)
Natural gas
chemicals

Aromatic
chemicals

Specialty chemicals

Information
andadvancedmaterials

Sales to outside customers ....

153,995

128,222

131,61153,274875-

467,979

Inter-segment sales ..............

7,807

1,958

966

4

69

(10,806)-

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

161,803130,180

132,577

53,279944(10,806)

467,979

income (loss) .....

15,981

(890)

6,707

4,417

1,555

(119)

27,651

16,632

613,908

Other

Adjustment

Consolidated

Net sales

OperatingIdentifiable assets by businesssegment .............................

194,371

109,362

187,509

61,15044,882

Depreciation .......................

6,295

5,860

7,790

2,799

10

339

23,096

Amortization of goodwill ........

44

94

0

1

-

(141)

-

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

(14)

(22)

(177)

-

-

141

(73)

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

80

27

126

23

4

(90)

173

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

1,374

947

819

121

4

(685)

2,581

Equity in earnings of affiliates

15,217

27

2,097

-

1,703

-

19,04554,675

1,539

11,030

-

25,09
6

(241)

92,100

6,372

5,777

15,076

3,385

0

370

30,982Other items

Investment to equity method
affiliates..............................
Increase of property, plant andequipment and intangible
assets ................................

19

SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS (FY 2013)(hundred million of yen, rounded down）

FY 2013
Net sales

FY 2012FY 2014

ChangeChange(%)(Forecast)

5,346

4,679

666

14.3%

5,400

Natural gas chemicals

1,948

1,618

330

20.4%

1,980

Aromatic chemicals

1,416

1,301

114

8.8%

1,245

Specialty chemicals

1,545

1,325

219

16.6%

1,657

556

532

23

4.4%

636

(119)

(98)

(21)

－

(120)

114

114

(0)

(0.0%)

140

Natural gas chemicals

27

17

9

51.6%

36

Aromatic chemicals

29

7

21

289.9%

16

Specialty chemicals

38

69

(31)

(45.3%)

56

Information and advanced materials

43

41

1

3.5%

56

Other and Adjustment

(23)

ᇞ 22

( 1)

－

(25)

Non operating profit (loss)

193

162

30

19.0%

210

Ordinary income (loss)

307

276

30

11.2%

350

Natural gas chemicals

184

159

24

15.4%

227

Aromatic chemicals

21

(8)

30

－

(0)

Specialty chemicals

37

67

(29)

ᇞ44.7%

58

Information and advanced materials

48

44

4

10.5%

52

Other and Adjustment

15

14

0

5.1%

12

Extraordinary income (loss)

(130)

(179)

48

－

( 50)

Income before income taxes and minority interests

177

97

79

81.8%

300

Net income

149

( 77)

227

－

250

Net income (loss) per share (¥)

33.14(17.25)－

55.35

Annual dividend per share (¥)

12.00

12.00

－

14.00

Equity in earnings of affiliates

204

190

14

7.5%

250

Income (expenses) on financing activities

(10)

(10)

0

－

－

Foreign currency statements translation adjustment

(3)

10

(14)

－

－

Other

2

(27)

30

－

(40)

193

162

30

19.0%

210

Gain on sales of noncurrent assets

3

1

1

100.6%

Gain on sales of investment securities

2

－

2

－

Information

and advanced materials

Other and Adjustment

Operating income (loss)※Consolidated subsidiaries: 40 , Affiliates : 14 (As of end of March,2014)

Non operating profit (loss)

Total ：Non‐operating profit (loss)

Extraordinary income (loss)

20

Insurance income

2

1

0

45.7%

Loss (gain) on liquidation of subsidiaries and associates

1

－

1

－

Impairment loss

(116)

(0)

(115)

－

Business structure improvement expenses

(15)

(154)

139

－

Environmental improvement expensive

(4)

(5)

1

－

Compensation for products

(3)

－

(3)

－

Loss on fire accident

(1)

－

(1)

－

Loss on valuation of investment securities

－

(10)

10

－

Provision for compensation expenses

－

(8)

8

－

Loss on litigation

－

(1)

1

－

Loss on disposal of noncurrent assets

－

(1)

1

－

Total ：Extraordinary income (loss)

(130)

(179)

48

－

Various index
FY2014(Forecast)

FY2013

FY2012FY2011FY2010

290
140

254
138

309
243

424
339

354
251

230
110

235
114

230
167

277
205

290
215

Investments (Full year)(first half)
Depreciation and amortization (Full year)(first half)
R&D expenditures (Full year)(first half)
Staff

180
93

161
80

153
115

174
132

164
119

5,554

5,445

5,323

5,216

4,979

ROA

5.2%

4.8%

4.6%

4.5%

6.5%

ROE
7.8%
Annual dividend (Full year)
14.0
7.0(first half)
Exchange rate (average)¥100/$
Apr-Sep¥100/$
Oct-MarMethanol market(Assumed Asian average spot price) $430/MT
Jan-June$370/MTJuly-Dec

5.0%(2.8%)

4.4%

6.9%

12.0
6.0

12.0
6.0

12.0
6.0

8.0
4.0

¥99/$

¥79/$

¥80/$

¥89/$

¥102/$

¥87/$

¥78/$

¥82/$

$375/MT$385/MT$349/MT$283/MT$449/MT$364/MT$385/MT$307/MT21