Summary of Consolidated Financial Results for First Half of FY2016
Nov. 2, 2016
Mitsubishi Gas Chemical, Inc (TSE 4182)
1.Summry of Income Statement (April 1- Sep 30, 2016)
Apr. 1 -Sep. 30,
2015
300,294

Net Sales

Millions of yen, rounded down
Apr. 1 -Sep. 30,
Change (%)
2016267,935(10.8)

Operating income

15,333

19,26925.7

Ordinary income

21,131

24,61216.5

Net income attributable to owners of the parent

18,524

18,524(0.0)

Comprehensive income

10,112

4,362(56.9)

Net income per share (Yen)

83.10

85.34

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

As of Mar. 31, 2016
Total Assets

739,582681,669

Net Assets

423,135

424,254

51.0

55.8

Equity Ratio(%)
3. Dividends
FY2015Interim dividend per share (Yen)FY20168.00

8.00

Year-end dividend per share (Yen)

8.00

18(Forecast)

Annual Dividend per share (Yen)

16.00-(Note) Revision of cash dividend forecast during this period: Yes*As the Company conducted a consolidation of shares at a ratio of one share for every two shares effective October
1, 2016, figures for the dividends per share for FY 2016 (forecast) are amounts that take into account theconsolidation of shares, and total annual dividends are shown as “-.” Year-end dividends per share for FY 2016(forecast) without taking into account the consolidation of shares are 9 yen, and annual dividends per share are 17yen.
4. Consolidated Business Forecasts for FY2016 (April 1, 2016 - March 31, 2017)
Millions of yen, rounded down
Full YearNet Sales

510,000

Operating income

30,000Ordinary income

37,000Net income attibutable to owners of the parent

26,000Net income per share (Yen)

120.12(Note) Revision of consolidated business forecasts during this period: Yes*Concerning net income per share of the Consolidated Business Forecasts (Full year) for FY 2016, the effects ofthe consolidation of sharest are taken into account.
5. Number of Shares Outstanding (Common Stock)
Mar31,2016

Sep30,2016

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

241,739,199

Number of shares of treasury stock at term-end

20,917,855

25,919,489

Apr. 1 -Sep. 30,
2015

Apr. 1 -Sep. 30,
2016

222,910,716

217,070,925

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

Consolidated Financial Statements
1. Consolidated Balance Sheets(Millions of yen, rounded down)
As of Mar. 31, 2016 As of Sep. 30, 2016
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
OtherAllowance 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

1

84,097
136,401
121
57,98010,98531,14821,547(1,043)
341,237

71,594
127,600
264
50,581
10,67028,961
15,429(1,034)
304,067

73,092
81,221
76,211
230,525

70,676
72,687
63,951
207,315

4,543
4,197
8,740

4,376
3,819
8,195

150,4319,088(441)159,079
398,344739,582

154,309
8,168(387)
162,090377,602681,669

Consolidated Balance Sheets (continued)(Millions of yen, rounded down)
As of Mar. 31, 2016 As of Sep. 30, 2016
LIABILITIESCurrent liabilities
Trade notes and accounts payable
Short-term loans payable
Current portion of bonds
Income taxes payable
Provision
Asset retirement obligations
OtherTotal current liabilities
Noncurrent liabilities
Bonds payable
Long-term loans payable
Provision
Projected benefit obligations
Asset retirement obligations
OtherTotal noncurrent liabilitiesTotal liabilities
NET ASSETS
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
Non controlling interest
Total net assets
Total liabilities and net assets

260,819
93,911
15,000
3,365
6,015
112
35,452
214,676

58,35070,301
15,000
2,099
5,493
133
27,291
178,670

10,00046,947
2,586
9,078
3,800
29,358
101,771
316,447

10,00037,106
1,967
8,315
3,825
17,53078,745
257,415

41,97035,603
311,250(15,566)
373,258

41,97035,603334,794(21,821)390,546

9,816
(3)
222
(4,613)(1,736)
3,686
46,190423,135
739,582

10,765
3
222(19,557)(1,412)(9,978)43,686424,254681,669

2. Consolidated Statements of Income(Millions of yen, rounded down)
Apr. 1 -Sep. 30, Apr. 1 -Sep. 30,
2015
2016
300,294
267,935
240,451
205,896
59,842
62,03944,50842,76915,333
19,269Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expense
Foreign exchange losses
Personnel expenses for seconded employees
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Compensation received
Gain on sales of investment securities
Subsidy income
Insurance income
Total extraordinary income
Extraordinary losses
Loss on liquidation of subsidiaries and affiliates
Loss on sales of investment securities
Business structure improvement expenses
Loss on cancel of lease contracts
Total extraordinary losses
Income before income taxes, etc.
Income taxes, etc.
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent

3

243
1,615
8,113
1,267
11,240

201
1,228
7,514
1,211
10,156

1,224
2,465
661
1,091
5,442
21,131

734
1,801
826
1,451
4,813
24,612

3,444
301
136
3,882

201
201

1,028
388
147
1,564
23,4482,852
20,596
2,072
18,524135
127
263
24,5503,180
21,3692,844
18,524

(Consolidated Statements of Comprehensive Income)(Millions of yen, rounded down)
Apr. 1 -Sep. 30, Apr. 1 -Sep. 30,
2015
2016
Net income
Other comprehensive Income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency statements translation adjustment
Remeasurements of defined benefit plans
Share of other comprehensive income of associates accounted for using equity
Total other comprehensive Income
Comprehensive income
Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

4

20,56921,369(6,407)29(2,439)(270)(1,396)(10,484)
10,112
8,786
1,326

931
7
(10,983)
148(7,112)(17,007)
4,362
5,600
(1,238)

(3)Segment Information(Billions of yen, rounded down）
FY 2015

FY 2016

1H

1H

300.2

267.9

(32.3)

593.5

510.0

Natural Gas Chemicals

92.8

70.1

(22.7)

175.6

132.7

Aromatic Chemicals

105.0

95.5

(9.5)

205.8

185.3

Specialty Chemicals

82.7

83.5

0.8

170.2

155.0

Information and Advanced Materials

26.4

24.8

(1.5)

55.2

48.4

Other and Adjustment

(6.8)

(6.1)

0.6

(13.5)(11.5)

15.3

19.2

3.9

34.0

30.0

Natural Gas Chemicals

2.1

0.3

(1.7)

4.1

0.6

Aromatic Chemicals

7.7

9.0

1.2

15.2

14.8

Specialty Chemicals

5.6

9.6

3.9

13.0

14.1

Net sales

Operating income (loss)

ChangeFY2015FY 2016

Full Year

Full Year

ResultForecast

1.1

2.0

0.9

4.0

3.9

(1.4)

(1.9)

(0.5)

(2.4)

(3.5)

Non-operating profit

5.7

5.3

(0.4)

11.4

7.0

Ordinary incomeInformation and Advanced Materials

Other and Adjustment

21.1

24.6

3.4

45.4

37.0

Natural Gas Chemicals

7.7

3.9

(3.8)

13.9

4.1

Aromatic Chemicals

7.1

8.5

1.4

13.7

13.5

Specialty Chemicals

5.8

11.4

5.6

15.5

17.5

Information and Advanced Materials

0.8

2.7

1.8

3.8

4.7

(0.4)

(1.9)

(1.5)

(1.6)

(2.9)

Other and Adjustment(4)Other Information
FY2012FY2013

FY2014FY2015FY2016
Forecast

Investments(Billions of yen)

Full year

30.9

25.4

22.2

30.5

35.0

1H

17.7

13.8

10.3

14.9

13.7

Depriciation & amortization(Billions of yen)

Full year

23.0

23.5

23.7

26.7

26.0

1H

10.7

11.4

11.5

13.1

12.2

R&D expenditures(Billions of yen)

Full year

15.3

16.1

16.8

18.9

20.0

1H

7.2

8.0

8.0

9.2

9.6

Number of Staff

Year-end

5,323

5,445

8,254

8,176

7,985

Numbe

ROA (Ordinary income)

4.6%

4.8%

5.8%

5.9%

5.2%

ROA (Ordin

ROE (Net income)(2.8%)

5.0%

12.6%

9.0%

6.8%

ROE (Ne7999103

122105Full year

83100110120103

First half385

375432

301

230

Second half364

449358230

240

Excahnge Rate
(JPY/USD, Average)
Methanol (USD/MT, Asian
average spot price)

1H5

Qualitative Information
Consolidated Business Results for This Period
Overview of Results(Billions of yen)
Apr.1-Sep.30,

Apr.1-Sep.30,

2015

2016

Net sales

300.2

267.9

(32.3)

Operating income

15.3

19.2

3.9

Ordinary income

21.1

24.6

3.4

18.5

18.5

(0.0)

Net income attributable to owners ofthe parent

ChangeDuring the first six months of the fiscal year ending March 2017 (April 1-September 30, 2016), the world
economy suffered from continued uncertainty about the future. While the U.S. market showed a recovery
trend, the slowdown of China and other emerging economies caused concerns. Despite the further
appreciation of the yen, the Japanese economy continued to experience slow upswing owing to an
ongoing improvement in employment.
The MGC Group suffered a drop in net sales compared with the corresponding period of the previous
fiscal year. Negative contributions included the stronger yen and lower methanol market prices.
Group operating income was higher than the prior-year figure. The negative impact of the stronger yen
was more than offset by the improved profitability primarily of engineering plastics, which was due tolower prices of fuels and raw materials among other reasons.
Group ordinary income posted year-on-year growth. Despite lower equity in earnings of overseas
methanol producing affiliates, there were positive factors including not only the increase in operating
income, but also higher equity in earnings of affiliates recognized by engineering plastics affiliates.
The Group posted a prior-year level of net income attributable to parent company shareholders. Despite adecline in gain on sales of investment securities, there was a positive impact of the growth in ordinary
income.

6Results by Business Segment
Natural Gas Chemicals(Billions of yen)
Apr.1-Sep.30,

Apr.1-Sep.30,

Change

2015

2016

Sales

92.8

70.1

(22.7)

Operating income

2.1

0.3

(1.7)

Ordinary income

7.7

3.9

(3.8)

The methanol business recorded declines in both revenue and earnings. The business suffered fromlower market prices.
Methanol and ammonia-based chemicals suffered declines in revenue and earnings. Despite declines inraw material prices, the figures were negatively affected by lower market prices of these products and thestronger yen.
Crude oil and other energy sources declined in both revenue and earnings due to lower crude oil prices.

Aromatic Chemicals(Billions of yen)
Apr.1-Sep.30,

Apr.1-Sep.30,

Change

2015

2016

Sales

105.0

95.5

(9.5)

Operating income

7.7

9.0

1.2

Ordinary income

7.1

8.5

1.4

Specialty aromatic chemicals posted a decline in both revenue and earnings due to the stronger yen.
General-purpose aromatic chemical products suffered a decline in revenue with the discontinued sale ofpurified terephthalic acid. Further negative factors included lower product market prices and the stronger
yen. Earnings from these products grew, however, primarily due to the improvement in profitability madepossible by lower prices of fuels and raw materials.
Despite being affected by the stronger yen, foamed plastics achieved an increase in revenue. Positive
reasons included lower prices of raw materials and the successful sales of high-value products.

7

Specialty Chemicals(Billions of yen)
Apr.1-Sep.30,

Apr.1-Sep.30,

Change2015

2016

Sales

82.7

83.50.8

Operating income

5.6

9.6

3.9

Ordinary income

5.8

11.4

5.6

Inorganic chemicals suffered reductions in both revenue and earnings. In addition to the stronger yen, alower sales volume of chemical solutions for semiconductors and LCD applications explains these results.
The engineering plastics business posted higher earnings. Major positive factors include improved
profitability resulting from reductions in fuel and raw material prices for polycarbonate, polyacetal and poly
carbonate sheets and films.

Information & Advanced Materials(Billions of yen)
Apr.1-Sep.30,

Apr.1-Sep.30,

Change2015

2016

Sales

26.4

24.8

(1.5)

Operating income

1.1

2.0

0.9

Ordinary income

0.8

2.7

1.8

Electronic chemicals achieved increases in both revenue and earnings, due to growth in the sales volumeof BT materials for semiconductor packaging, which represent this segment’s core product category.
Oxygen absorbers such as AGELESS® posted slightly lower earnings levels compared with the same
period of the previous year. The appreciation of the yen more than canceled the positive impact ofprior-year level developments in the sale of products for domestic food applications.

8Consolidated Business Forecasts
Revision of consolidated business forecasts
Half year ending September 30, 2016 (April 1, 2016 － September 30, 2016)(Billions of yen)

Net sales

OperatingincomeOrdinary
incomeNet income
attributableto owners ofthe parent

260.0

12.0

15.0

9.0

41.46

Results (B)

267.9

19.2

24.6

18.5

85.34

Change (B – A)

7.9

7.2

9.6

9.5

-Net income
per share (¥)

Previously announcedforecasts (A)Consolidated results were better than the previous forecasts. Reasons included increases in the operating
income of specialty and aromatic chemicals as well as increases in earnings of affiliates reported by affiliates
producing methanol and engineering plastics.

Full fiscal year 2016 (April 1, 2016 － March 31, 2017)(Billions of yen)

Net sales

OperatingincomeOrdinary
incomeNet income
attributableto owners of
the parent

520.0

25.0

32.0

21.0

97.02

Revised forecasts (B)

510.0

30.0

37.0

26.0

120.12

Change (B – A)

(10.0)

5.0

5.0

5.0

-

Net income
per share (¥)

Previously announced
forecasts (A)Forecasts of full-year consolidated performance for the fiscal year ending March 2017 will likely surpass theprevious forecasts. This is because the better-than-forecast figures posted for the first six months will morethan offset the negative impact of results for the second half. The latter figures are expected to fall short of theprevious forecasts because of a decline in overall profitability due to the strong yen and other reasons as well
as lower equity in earnings of methanol producing affiliates.
These performance forecasts assume exchange rates of ¥100=$1 and ¥110=€1 for the unelapsed period ofthe fiscal year.

9(Revision of Forecast Dividends)
MGC corrects its previous forecast for the dividends to be provided towards the end of the fiscal year underreview. This is partly because MGC posted strong figures for both consolidated and non-consolidated
performance in the first six months of the fiscal year ending March 2017. A further reason is that full-year
consolidated results are now expected to surpass the corresponding previous forecasts.

(Yen)

Cash Dividends per Share
2Q
Previously announced
forecasts

Year End
8.00

Revised forecasts
2Q Results

8.00

Fiscal 2015 Results

8.00

Annual※16.00※―※18.00

※―

8.00

16.00

※As the Company conducted a consolidation of shares at a ratio of one share for every two shares effective
October 1, 2016, figures for the dividends per share for FY 2016 (forecast) are amounts that take into
account the consolidation of shares, and total annual dividends are shown as “―.”(End)

10