SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS
Results for the Fiscal Year 2012 (from April 1, 2012 to March 31, 2013)
MITSUBISHI GAS CHEMICAL COMPANY, INC.
Stock Code:

4182

URL:

http://www.mgc.co.jp

President:

Kazuo Sakai

May 9, 2013
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, 2013
Scheduled date of filing of the financial report: June 25, 2013
Scheduled date of payment of dividend: June 6, 2013

1. Consolidated Financial Results for the Fiscal Year 2012(from April 1, 2012 to March 31, 2013)
1) Consolidated Operating Results
Percentage figures represent changes compared to the previous fiscal

Millions of yen, rounded down

year

FY 2012FY 2011(% 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 (%) ................................

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

(% change)

3.5
25.7
5.9
-

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

0.3
(61.1)(28.2)(34.9)

Note: Comprehensive income: FY 2012: ¥8,812 million [8.2%]; FY 2011: ¥8,141 million [(50.8%)]
Equity in earnings of affiliates: FY 2012: ¥19,045 million; FY 2011: ¥20,532 million

2) Consolidated Financial Position

Millions of yen, rounded down

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

613,908
294,895
46.2
628.40FY 2011595,250
292,11147.3
623.46

FY 2011: ¥281,687 million

3) Consolidated Cash Flows

Millions of yen, rounded down

FY 2012
Cash flow from operating activities .........................................
Cash flow from investing activities ..........................................
Cash flow from financing activities ..................................
Cash and cash equivalents at end of period ......................

FY 201137,348(37,274)(9,876)35,701

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

2. Dividends
FY 2011
Interim dividend per share (¥) .................................................
Year-end dividend per share (¥) .............................................
Annual dividend per share (¥) .................................................
Total dividend payment (millions of yen) ...............................
Dividend payout ratio (%)........................................................
Dividend to net assets ratio (%) ..............................................

FY 2013(Forecast)
6.00
6.00
12.00
20.8
-

FY 2012

6.00
6.00
12.00
5,421
44.0
1.9

6.00
6.00
12.00
5,420
1.9

3. Forecasts for the Fiscal Year 2013 (from April 1, 2013 to March 31, 2014)

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 ....................................................................................... 260,000
Operating income ................................................................
8,000
Ordinary income ................................................................
17,000Net Income ............................................................................. 14,000
Earnings per share (¥)
30.99

1

11.7
103.4
51.3
72.5

(% change)

530,000
16,00034,00026,000
57.56

13.3
40.1
23.0
-

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: Yes
3. Changes in accounting estimates: Yes
4. Restatement of corrections: None
3) Number of shares outstanding (ordinary shares)

FY 2012FY 2011

Number of shares issued at end of period(including treasury shares) .......................................................... 483,478,398
Number of treasury shares at end of period ................................
31,769,134
Average shares outstanding during period................................

483,478,398
31,666,371
451,885,958

451,727,688

Reference: Outline of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year 2012 (from April 1, 2012 to March 31, 2013)
1) Non-consolidated Operating Results
Percentage figures represent changes compared to the previous fiscal year

Millions of yen, rounded down

FY 2012FY 2011(% change)

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

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

5.4
52.8
-

2) Non-consolidated Financial Position

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

2.9
26.3
56.4

Millions of yen, rounded down

FY 2012397,658
174,95344.0
387.31

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

FY 2011402,532
183,32645.5
405.76

Note: Shareholders’ equity: FY 2012: ¥174,953 million; FY 2011: ¥183,326 million

2. Non-consolidated Forecasts for the Fiscal Year 2013(from April 1, 2013 to March 31, 2014)
Percentage figures represent changes compared to the previous interims period or fiscal year
Millions of yen, rounded down

Six-month period

Full year(% change)

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

200,000
4,000
13,00012,000
26.57

10.7
175.9
46.8
88.3

(% change)

400,000
8,000
24,00020,000
44.28

8.5
(2.2)
(13.4)-(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 2012), the Japanese economy saw recovery in businesssentiment thanks to the correction of the yen’s excessive appreciation in the second half of the period.
However, it continued to face great strain due to the prolonged public finance crisis in Europe and theslowdown of the Chinese economy.
The MGC Group achieved an increase in revenue compared with the previous year. Due to weak overseas
demand and the strong yen, the Group’s methanol and ammonia derivatives and aromatic chemicals faced adifficult sales environment as in the previous year. By contrast, methanol sales prices enjoyed favorable
developments, while electronic chemicals and polycarbonates achieved higher sales volumes.
Operating income achieved a year-on-year increase. Despite overall declines in the earnings ofconsolidated subsidiaries, the higher sales volume of electronic chemicals and a change in the depreciation
method made positive contributions.
Equity in earnings of affiliates was lower than the prior-year level due mainly to weak sales performance byoverseas methanol producing companies, while ordinary income grew thanks to the increase in operating
income.
The Group suffered a significant net loss in fiscal 2012, due to extraordinary loss due to the structuralreform of purified isophthalic acid and meta-xylene businesses as well as the partial reversal of deferredincome taxes.
In fiscal 2012, the MGC Group achieved ¥467.9 billion in consolidated net sales, an increase of ¥15.7 billion(3.5%) from the previous year. Consolidated operating income was ¥11.4 billion, an increase of ¥2.3 billion(25.7%). Equity in earnings of affiliates was ¥19.0 billion, a decline of ¥1.4 billion (7.2%). Consolidated ordinary
income grew by ¥1.5 billion (5.9%) to ¥27.6 billion. The Group suffered a consolidated net loss of ¥7.7 billion, adrop of ¥20.1 billion from the previous fiscal year’s positive figure.

Results by business segment
Natural Gas Chemicals Company
The methanol business achieved an increase in revenue thanks to favorable developments in sales prices.
Methanol and ammonia derivatives achieved an increase in earnings. Higher ammonia market prices andthe change in the depreciation method contributed to this, despite declines in sales prices of MMA-based
products and neopentylglycol, which was primarily due to declines in demand resulting from the slowdown of
the Chinese economy.
The enzyme and coenzyme business recorded low levels of revenue and earnings due to a lower sales
volume for coenzyme Q10.
Crude oil and other energy increased in both revenue and earnings due to favorable development of crude
oil sales.
In fiscal 2012, the Natural Gas Chemicals Company achieved consolidated net sales of ¥153.9 billion, an
increase of ¥0.8 billion (0.5%) from the previous year and an operating income of ¥1.7 billion, an increase of¥1.4 billion (365.9%). An equity in earnings of affiliates of ¥15.2 billion, coming primarily from overseas
methanol producing companies, was posted, resulting in a consolidated ordinary income of ¥15.9 billion, an
increase of ¥0.7 billion (5.0%).

3

Aromatic Chemicals Company
Specialty aromatic chemical products posted higher earnings compared with the previous year. Reductions
in sales volumes for meta-xylenediamine, Nylon-MXD6, and aromatic aldehydes were more than offset by the
positive effects produced by such items as the change in the depreciation method.
General-purpose aromatic chemicals such as purified isophthalic acid posted higher earnings than theprior-year-level. They suffered declines in sales volume due for example to sluggish demand caused by theslowdown of the polyester market. On the other hand, positive effects were brought by factors such as thecorrection of the yen appreciation in the second half of the fiscal year and the change in the depreciation
method.
In fiscal 2012, the Aromatic Chemicals Company achieved consolidated net sales of ¥128.2 billion, an
increase of ¥2.9 billion (2.3%), an operating income of ¥0.7 billion, an improvement of ¥1.7 billion, and an
ordinary loss of ¥0.8 billion, an improvement of ¥1.2 billion.

Specialty Chemicals Company
Inorganic chemicals suffered declines in both revenue and earnings due to a reduction in the sales volume
of hydrogen peroxide.
Electronic chemicals achieved increases in both revenue and earnings. This positive trend was due tohigher sale volumes of super-pure hydrogen peroxide and hybrid chemicals for semiconductors.
The earnings of the engineering plastics business were lower than its prior-year period. The sales volumeof polycarbonates was higher than the prior-year number affected by the major natural disaster in East Japan,
but the Shanghai subsidiary that started operation during the period under review suffered a substantial loss.
The polyacetal business also suffered a decline in earnings due to reductions in sales prices.
Polycarbonate sheets and films suffered losses in both revenue and earnings. This is because of theprior-year level sales volume of films for use in flat panel displays and a lower sales volume of hard-coatedsheets.
In fiscal 2012, the Specialty Chemicals Company posted consolidated net sales of ¥131.6 billion, an
increase of ¥10.5 billion (8.7%) from the previous year and an operating income of ¥6.9 billion, a decline of¥0.5 billion (7.3%). Due to ¥2.0 billion equity in earnings of affiliates, ordinary income was ¥6.7 billion, a drop of¥1.7 billion (20.8%).

Information & Advanced Materials Company
Electronic materials posted prior-year level earnings. Sales of BT materials for semiconductor packaging,which represents MGC’s core segment for electronic materials, were affected by weak demand forgeneral-purpose products. This negative impact was offset by an increase in the sales volume ofhigh-performance products such as smartphone-related applications.
Oxygen absorbers such as AGELESS® achieved higher earnings than in the previous year. Despite lower
sales of non-food applications, this business enjoyed strong sales developments overall, above all in thedomestic and overseas food markets.
In fiscal 2012, the Information & Advanced Materials Company achieved consolidated net sales of ¥53.2
billion, an increase of ¥1.4 billion (2.7%), an operating income of ¥4.1 billion, an increase of ¥0.4 billion(10.6%), and an ordinary income of ¥4.4 billion, growth of ¥0.6 billion (17.6%).

4

OtherIn the year ending March 31, 2013, the other business segment achieved consolidated net sales of ¥0.8
billion, a year-on-year increase of ¥0.0 billion (3.7%). Operating income grew by ¥0.0 billion (15.5%) to ¥0.3
billion, and ordinary income declined by ¥0.0 billion (4.0%) to ¥1.5 billion.

②Consolidated forecasts for the fiscal year 2013
Despite the expectations for continued depreciation of the yen and economic recovery in the domestic
market, the world economy warrants no optimism, as demand is low in overseas markets including China,
while raw material and fuel prices remain at high levels.
With this awareness, the MGC Group will implement measures in accordance with the basic strategies
stated in the “MGC Will2014” Mid-term Management Plan, which include “strengthening the core businesses”
and “restructuring loss-making businesses.” In doing so, the Group will steadily improve its revenue andearnings.
In fiscal 2013, the Group expects to achieve higher operating income than in fiscal 2012. Positive factors
will include overall improvement of the profitability of exports, increases in the sales volumes of electronic
chemicals, and improved earnings at consolidated subsidiaries. Equity in earnings of affiliates will also
increase, due mainly to strong performance by overseas methanol producing companies.
The Group anticipates to achieve consolidated net sales of ¥530.0 billion, an operating income of ¥16.0
billion, an ordinary income of ¥34.0 billion, and a net income of ¥26.0 billion. In non-consolidated terms, MGC
forecasts net sales of ¥400.0 billion, an operating income of ¥8.0 billion, an ordinary income of ¥24.0 billion,
and a net income of ¥20.0 billion.
These performance forecasts assume exchange rates of ¥95=$1 and ¥120=€1.

(2) Consolidated financial position①Assets, liabilities and net assets
As of March 31, 2013, total consolidated assets were ¥613.9 billion, ¥18.6 billion higher than at the end of
the previous fiscal year.
Current assets increased by ¥7.3 billion to ¥261.3 billion, primarily due to a decline in short-term
investments securities and increases in trade notes and accounts receivable as well as merchandise andfinished goods.
Noncurrent assets increased by ¥11.2 billion to ¥352.5 billion. Major contributions came from an increase inproperty, plant and equipment due to capital expenditure, including machinery, equipment and vehicles, aswell as an increase in investment securities. The latter came from the assessment of the market value ofequity holdings, the posting of equity in earnings of affiliates, and exchange effects.
Total liabilities increased by ¥15.8 billion to ¥319.0 billion. Current liabilities rose by ¥1.9 billion: Despite areduction in short-term loans payable, other current liabilities increased due to higher trade notes andaccounts payable and accrued expenses due to capital expenditure. Noncurrent liabilities increased by ¥13.9
billion due to increases in long-term loans payable and deferred tax liabilities.
Net assets increased by ¥2.7 billion to ¥294.8 billion: Despite the net loss, positive contributions included
increases in foreign currency translation adjustment and valuation difference on available-for-sale securities.
As of March 31, 2013, the shareholders’ equity ratio was 46.2% (March 31, 2012: 47.3%). Net assets per

5share at the end of the fiscal year were ¥628.40, compared with ¥623.46 one year earlier.
②Consolidated cash flows
As of March 31, 2013, total cash and cash equivalents were ¥26.9 billion, ¥8.7 billion lower than at the end of
the previous fiscal year.
1) Operating activity cash flow
Net cash provided by operating activities fell by ¥6.1 billion from the previous year to ¥31.1 billion. This wasprimarily due to a reduction in depreciation expenses.
2) Investing activity cash flow
Net cash outflow from investing activities was ¥30.8 billion, ¥6.4 billion less than the outflow for the previous
year. This was primarily due to a decline in expenses caused by the acquisition of noncurrent assets.
3) Financing activity cash flow
Net cash outflow from financing activity was ¥14.3 billion, an increase of ¥4.4 billion from the previous year.
This was primarily due to greater expenses for repaying short-term loans payable.

(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 toincrease future enterprise value. The Company therefore determines dividends using a specific method
combining a performance-linked portion with a stable portion. From the perspective of optimizing capitalefficiency, treasury share acquisitions are considered flexibly in accordance with the market environment.
For the year under review, the Company plans to pay a year-end dividend of ¥6.0 per share, as previously
forecast. In combination with the interim dividend of ¥6.0 per share already paid, this represents an annual
dividend of ¥12.0 per share.

63. Management policy(1) Basic management approach
Based on the MGC Group management philosophy of contributing to the peace and development of society
through the creation of a diverse range of values through chemistry, the MGC Group aims to develop and growsustainably on the global stage as a leading chemicals group with major presence and a strong platform of
proprietary technology while taking CSR in all its activities.
(2) Mid-term management indices and targets
When developing the previous Mid-term Management Plan “MGC Will 2011” (FY2009-2011), MGC decided
that, in order to achieve further sustainable growth despite increasing economic uncertainty, it was necessary
to formulate and implement a business plan from a long-term perspective. Consideration was first given to
determining what kind of company MGC should aim to become by 2021, the 50th anniversary of its
establishment. As the second step, following “MGC Will 2011,” of achieving the vision for 2021, the Company
introduced the new Mid-term Management Plan “MGC Will2014” in April 2012.
●Mid-term Management Plan “MGC Will2014”
Basic Strategies- Strengthening the core businesses- Restructuring loss-making businesses- Accelerating development of new businesses- Improving total enterprise quality in support of sustainable growth

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

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

Assumptions:Exchange rate: ¥80/USD
Crude oil price (Dubai): 2012: 115 USD/bbl, 2013: 115 USD/bbl, 2014: 120 USD/bbl(3) Key issues
In core businesses, MGC has a wide range of products, from basic chemicals and materials such as
methanol, hydrogen peroxide, and polycarbonates to high-performance products such as 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 thesegment of chemicals and material products, low-cost production will be enhanced by obtaining access tomaterial 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, MGC has worked on improving the profitability of loss-making businesses. However,they have continued to face a difficult business environment due to a worsened demand-supply balance7caused by increases in production capacity at competitors. It therefore remains unlikely that the environmentof these businesses will turn for the better in the foreseeable future. MGC has decided to withdraw from thesebusinesses and/or reduce their production. In keeping with changes in the business environment, MGC willcontinue to strengthen its business structure at a fast pace.
Where the development of new businesses is concerned, MGC set up the “Next Generation Business
Project Group” to reinforce its existing research and development. Integrating internal resources through across-organizational approach, this organization has been operating successfully. In the future, it will
accelerate its work even further.
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, and higher group-wide business efficiency.

84. Consolidated Financial Statements(1) Consolidated Balance Sheets(In ¥ million, rounded down)
FY2011(As of March 31, 2012)

FY2012(As of March 31, 2013)ASSETS
Current assets

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

27,43828,888Trade notes and accounts receivable .....................................

122,054

127,843

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

10,241140

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

42,76150,172Work in progress....................................................................

10,732

10,607

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

22,59327,261Other .......................................................................................

18,995

17,275

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

(779)

(792)

254,037

261,397

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

49,79355,570Machinery, equipment and vehicles, net ..............................

59,707

69,780

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

81,677

70,101

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

191,178

195,453

Total current assets .....................................................
Noncurrent assets
Property, plant and equipment

Intangible assets

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

104-

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

3,171

3,374

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

3,275

3,374

Investment securities ............................................................

132,935

146,762

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

14,925

7,180

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

(1,101)(260)

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

146,758

153,683

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

341,212352,511

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

595,250

613,908

Investments and other assets

9Consolidated Balance Sheets (contd.)(In ¥ million, rounded down)
FY2011(As of March 31, 2012)

FY2012(As of March 31, 2013)

Trade notes and accounts payable ..........................................

69,42773,907

Short-term loans payable .........................................................

90,511

84,627

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

1,599

1,358

Provision ..................................................................................

3,693

4,318

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

28,232

31,225

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

193,464

195,438

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

15,00015,000Long –term loans payable ........................................................

56,277

61,183

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

7,095

7,549

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

1,451

2,949

LIABILITIESCurrent Liabilities

Noncurrent liabilities

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

3,512

4,207

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

26,33632,682

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

109,673

123,574

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

303,138

319,013

Capital stock .............................................................................

41,97041,970Capital surplus .........................................................................

35,59335,595Retained earnings ....................................................................

245,083

231,882

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

(8,039)(8,094)

Total shareholders’ equity ...................................................

314,607

301,353

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

3,468

8,607

Deferred gains or less on hedges.............................................

(177)

-

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

206

206

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

(36,417)(26,311)

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

(32,920)(17,497)

NET ASSETS
Shareholders’ equity

Accumulated other comprehensive income

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

10,424

11,039Total net assets ...............................................................

292,111294,895

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

595,250

613,90810

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

FY 2011

FY 2012(April 1, 2011 – March 31, 2012)(April 1, 2012 – March 31, 2013)

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

452,217467,979

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

385,731400,011Gross profit ..............................................................................

66,486

67,967

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

57,40256,545

9,083

11,421

136

173

Operating income..................................................................
Non-operating income

Interest income ......................................................................
Dividend income ....................................................................

1,471

1,344

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

20,531
1,847

19,045
3,215

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

23,987

23,779Interest expense ....................................................................

1,981

2,581

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

1,443

1,443

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

608

903

Non-operating expenses

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

387-

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

2,533

2,621

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

5,316

7,549

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

22,61627,651Gain on sales of noncurrent assets .......................................

-

180

Insurance income ..................................................................

Extraordinary income

1,221

163

Gain on sales of investment securities

125-

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

17

-

1,363

344

Business structure improvement expenses ...................

-

15,439Loss on valuation of investment securities ............................

-

1,049

Provision for compensation expenses...................................

-

838

Environmental improvement expensive ................................

499

592

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

149

165

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

-

116

Impairment loss .....................................................................

91

54

Provision of allowance doubtful accounts..............................

682

Total extraordinary income ............................................
Extraordinary losses

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

573-

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

1,995

18,256

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

25,484

9,739

Income taxes, etc. ..................................................................................

11,893

17,076

Net income or loss before minority interests ..................................

13,590(7,336)

Minority interests in income ......................................................

1,263

456

Net income or loss ....................................................................

12,327(7,793)11

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

FY 2011

FY 2012(April 1, 2011 – March 31, 2012)(April 1, 2012 – March 31, 2013)

13,590(7,336)

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

(793)

5,088

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

(197)

197

(1,159)3,380(3,299)

7,483

Total other comprehensive Income ................................................................(5,449)

16,149

8,141

8,812

7,199

7,526

941

1,286

Income before minority Interests ................................................................
Other comprehensive Income

Foreign currency statements translation adjustment ................................
Share of other comprehensive income of associates
accounted for using equity method .......................................
Comprehensive Income............................................................

Total comprehensive Income Attributable to
Owners of the parent ................................................................
Minority interests ................................................................................................

12

(3) Consolidated Statements of Changes in Net Assets(In ¥ million, rounded down)

FY 2011

FY 2012(April 1, 2011 – March 31, 2012)(April 1, 2012 – March 31, 2013)

41,97041,97041,97041,97035,59135,59311

1
135,59335,595236,597

245,083(4,518)(5,421)

12,327678
8,486
245,083(7,793)
13(13,200)
231,882(7,920)(8,039)

(121)
1

(56)
1

(119)
(8,039)(54)(8,094)306,238

314,607(4,518)12,327678(121)
3(5,421)(7,793)13(56)
3

Total changes of items during the period ..........................

8,368(13,254)

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

314,607

301,353

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 ....................................
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 ....................................
Purchase of treasury stock ................................................
Disposal of treasury stock .................................................

13

Consolidated Statements of Changes in Net Assets (contd.)(In ¥ million, rounded down)

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Balance at the beginning of current period ...........................
Changes of items during the period
Net changes of items other than shareholders’ equity ..........
Total changes of items during the period .............................
Balance at the end of current period .....................................
Deferred gains or losses on hedges
Balance at the beginning of current period ...........................
Changes of items during the period
Net changes of items other than shareholders’ equity..........
Changes of items during the period......................................
Balance at the end of current period .....................................
Revaluation reserve of land
Balance at the beginning of current period ...........................
Changes of items during the period ......................................
Net changes of items other than shareholders’ equity ..........
Total changes of items during the period ..............................
Balance at the end of current period .....................................
Foreign currency translation adjustments
Balance at the beginning of current period ...........................
Changes of items during the period
Net changes of items other than shareholders’ equity.......
Total changes of items during the period ..........................
Balance at the end of current period .....................................
Total accumulated other comprehensive income
Balance at the beginning of current period ...........................
Changes of items during the period
Net changes of items other than shareholders’ equity..........
Total changes of items during the period .............................
Balance at the end of current period .....................................
Minority interests
Balance at the beginning of current period ...............................
Changes of items during the period
Net changes of items other than shareholders’ equity ..........
Total changes of items during the period ..............................
Balance at the end of current period ........................................
Total net assets
Balance at the beginning of current period ...............................
Changes of items during the period
Dividends from surplus .........................................................
Net income............................................................................
Change of scope of consolidation .........................................
Change of scope of equity method .......................................
Purchase of treasury stock ...................................................
Disposal of treasury stock .....................................................
Net changes of items other than shareholders’ equity ..........
Total changes of items during the period ..............................
Balance at the end of current period ........................................

14

FY 2011

FY 2012(April 1, 2011 – March 31, 2012)(April 1, 2012 – March 31, 2013)

4,197

3,468

(728)
(728)
3,468

5,138
5,138
8,607

-

(177)

(177)
(177)
(177)

177
177
-

192

206

14
14
206

206

(32,531)(36,417)(3,886)(3,886)(36,417)

10,106
10,106(26,311)(28,142)(32,920)(4,778)(4,778)(32,920)

15,422
15,422(17,497)

10,161

10,424263
263
10,424615
615
11,039288,257

292,111(4,518)(5,421)

12,327678(121)
3(4,514)
3,853
292,111(7,793)13(56)
316,0382,784
294,895

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

FY 2011

FY 2012(April 1, 2011 – March 31, 2012)(April 1, 2012 – March 31, 2013)

Net cash provided by (used in) operating activities
Income before income taxes and minority interests ........................
Depreciation and amortization ........................................................
Loss (gain) on disposal of noncurrent assets ................................
Amortization of goodwill ................................................................
Insurance income............................................................................
Business structure improvement expenses .............................
Provision for compensation expenses ............................................
Impairment losses ...........................................................................
Loss on disaster ..............................................................................
Loss on litigation .............................................................................
Equity in (earnings) losses of affiliates ............................................
Increase (decrease) in allowance for doubtful accounts .................
Increase (decrease) in provision for retirement benefits .................
Interest and dividends income ........................................................
Interest expenses............................................................................
Loss (gain) on sales of short-term and long-term investment
securities .........................................................................................
Loss (gain) on valuation of short-term and long-term
investment
securities .........................................................................................
Loss on adjustment for changes of accounting standard for
asset retirement obligations ............................................................
Environment improvement expenses ..............................................
Decrease (increase) in notes and accounts receivable-trade........................................................................................................
Decrease (increase) in inventories..................................................
Increase (decrease) in notes and accounts payable-trade .............
Increase (decrease) in accrued consumption taxes. .......................
Increase (decrease) in provision for directors’ retirement
benefits ...........................................................................................
Other, net ........................................................................................

25,484
27,763601(102)(1,373)

91572
149(20,532)642
1,700(1,608)
1,981

9,739
23,096
672
(73)
(201)
15,439838
54165(19,045)(833)
439(1,518)
2,581

(99)

(7)

29

1,056

-

-

499

592

(11,154)(2,012)(8,332)
10,164(1,384)(11,322)
1,739
261

187
1,286

(33)
(3,940)26,567
1,609

17,687
1,440

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 .........................................................

18,242

17,945(1,863)(5,375)592(2,423)(2,498)(4,313)982(75)

Net cash provided by (used in) operating activities ...

37,34831,16915

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

FY 2011

FY 2012(April 1, 2011 – March 31, 2012)(April 1, 2012 – March 31, 2013)

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 ...

(118)
488
(34,625)337(3,083)(10)
124(30,105)
448
(870)

193
(455)
102
(112)
(37,274)3(1,153)695
49(30,818)

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 ........................................................................................

2,883
3,137
(4,300)14,926(20,000)(121)(4,518)(684)(1,202)(7,935)24,601(23,181)(56)(5,421)(635)(1,727)(9,876)(14,356)(1,264)

3,605(11,066)
46,768(10,399)
35701

-

1,605

35,701

26,907

Net cash provided by (used in) financing activities ...
Effect of exchange rate change on cash and cash
equivalents ............................................................................
Net increase (decrease) in cash and cash equivalents .....
Cash and cash equivalents at beginning of period............
Increase (decrease) in cash and cash equivalents resulting
from change of scope of consolidation ................................
Cash and cash equivalents at end of period ......................

16

Changes in accounting policies, changes in accounting estimates, and restatements of corrections(Change in the depreciation method)
Starting in fiscal 2012, MGC has switched the method of depreciation of property, plant and equipment, notincluding buildings and structures (other than accompanying facilities) and leased assets, from the traditional
fixed-rate method to the straight-line method.
This change was made following an internal study of the use of property, plant and equipment, which forms
the basis of the MGC Mid-term Management Plan. This study shows that production outputs and operating
ratios will remain stable in the long term. MGC has, therefore, decided that the straight-line method betterreflects the use of these assets within MGC.
Compared with the corresponding figures calculated by the traditional method, operating income for fiscal
2012 increased by ¥4,644 million, while ordinary income, and income before income taxes and minority
interests each increased by ¥4,654 million.
Since fiscal 2012, some of the consolidated subsidiaries in Japan have switched to the depreciation
method stipulated in the revised Corporation Tax Act for the property, plant and equipment acquired on April 1,2012 and thereafter.
Compared with the corresponding figures calculated by the traditional method, their operating income, ordinary
income, and income before income taxes and minority interests for fiscal 2012 each rose by ¥194 million.

17

(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 to anindependent strategy formulated around its products and services. This structure makes it possible obtainseparate financial information for each segment, and in order to optimize the allocation of management
resources and assessment of performance by the Board of Directors, the four companies, the Natural Gas
Chemicals Company, the Aromatic Chemicals Company, the Specialty Chemicals Company and the Information& Advanced Materials Company, are used as segments for the presentation of financial information.
The Natural Gas Chemicals Company manufactures and sells products such as methanol, ammonia, amines,
methacrylate derivatives, polyhydric alcohol, enzymes, coenzymes and crude oil.
The Aromatic Chemicals Company manufactures and sells xylene isomers and their derivatives.
The Specialty Chemicals Company manufactures and sells products such as hydrogen peroxide and otherinorganic chemicals for industrial use, electronic chemicals, and engineering plastics.
The Information & Advanced Materials Company manufactures and sells products such as materials for printed
circuit boards, printed circuit boards, and oxygen absorber such as AGELESS®.

2. Business segments

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

Specialty
chemicals

Information
and advanced
materials

128,222

131,61153,274

1,958

966

4

Aromatic
chemicals

Other

Adjustment

Consolidated

875-

467,979

69(10,806)-

Net sales
Sales to outside customers ................................
153,995
Inter-segment sales ................................
7,807
Total ............................

161,803130,180

132,577

53,279944(10,806)

467,979

Operating income (loss) .....

15,981

(890)

6,707

4,417

1,555

(119)

27,651

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

194,371

109,362

187,509

61,15044,882

16,632

613,908

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

11,030-25,096(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 ................................

18

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

Specialty
chemicals

Information
and advanced
materials

125,301

121,047

51,859

1,883

1,063

0

Aromatic
chemicals

Other

Adjustment

Consolidated

844-

452,21782(9,831)-

Net sales
Sales to outside customers ................................
153,164
Inter-segment sales ................................
6,802
Total ............................

159,966

127,184

122,11051,860926(9,831)

452,217

Operating income (loss) .....

15,216(2,160)

8,467

3,756

1,620

(783)

26,116

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

185,577

113,407

159,425

56,84742,96637,025595,250

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

7,725

7,738

8,420

3,525

11

342

27,763

Amortization of goodwill ........

44

94

0

1

-

(141)

-

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

(14)

(22)

(205)

(1)

-

141

(102)

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

47

36

91

48

0

(88)

136

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

1,084

818

509

139

9

(579)

1,981

Equity in earnings of affiliates

16,368

141

2,188

-

1,834

-

20,532

49,662

1,493

9,954

-

22,666(246)

83,53013,942

4,736

21,661

1,887

10

185

42,423

Other items

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

19