SUMMARY OF FINANCIAL STATEMENTS (Consolidated)
First quarter results for the year ending March 31, 2009
MITSUBISHI GAS CHEMICAL COMPANY, INC.
Listed exchanges:

Tokyo, Osaka, Nagoya 1st sections

Stock Code:

4182

URL:

http://www.mgc.co.jp

President:

Kazuo Sakai

August 5, 2008
Inquiries:

Yasuhiro Sato
General Manager
Corporate Communications Division

Telephone:+81 3 3283-5041

Planned date of filing of the financial report for the three months ended June 30, 2008: August 14, 2008
1. Consolidated financial results for the first quarter of the fiscal year ending March 31, 2009
(The three-month period April 1, 2008 to June 30, 2008)
1) Consolidated operating results
Millions of yen, rounded down
Percentage figures represent changes compared to the previous fiscal year

Three months ended
June 30, 2008

Three months ended
June 30, 2007(% change)

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

133,907
5,245
12,690
9,185
19.88
19.45

-

(% change)

127,886
12,056
20,302
13,612
29.45
28.82

11.6
31.2
34.0
12.4-2) Consolidated financial position
Millions of yen, rounded down

As of June 30, 2008
Total assets..................................................................
Net assets ....................................................................
Shareholders’ equity ratio (%) ......................................
Net assets per share (¥)...............................................

As of March 31, 2008

602,464
311,99550.2
655.00601,386
312,02150.3
654.25

Note: Shareholders’ equity as of June 30, 2008: ¥302,653 million; as of March 31, 2008: ¥302,314 million

2. Dividends

Interim dividend per share (¥) ......................................
Year-end dividend per share (¥)...................................
Annual dividend per share (¥) ......................................

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

Fiscal year ended
March 31, 2008
8.00
8.00
16.00

Note: There has been no change in the forecast dividend.

3. Forecasts for the fiscal year ending March 31, 2009
(April 1, 2008 to March 31, 2009)
Millions of yen, rounded down
Percentage figures represent changes compared to the previous fiscal year

Interim period ending
September 30, 2008

Fiscal year ended
March 31, 2009(% change)

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

270,000
7,500
17,50014,00030.30-(% change)

540,000
21,00039,00031,00067.09

4.0(55.7)(36.9)(22.9)-

Note: The consolidated interim and full-year forecasts have been revised.

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4. Other1) Transfer of important subsidiaries during the period under review (Transfers of certain subsidiaries resulting in changes in the scopeof consolidation): No
2) Adoption of simplified accounting methods*: Adopted
3)

Changes in accounting methods, procedures and presentation in the preparation of these financial statements* (Key items
mentioned in Material Items Forming the Basis for the Preparation of the Consolidated Financial Statements for the Fiscal Year)
1. Changes following revisions to accounting standards: Yes
2. Other changes: Yes

4) Number of shares outstanding (ordinary shares)Three months ended
June 30, 2008

Year ended
March 31, 2008

Number of shares outstanding at end of period(including treasury shares) (shares) ............................
Number of treasury shares at end of period ..................

483,478,398
21,413,877

21,396,891

Average shares outstanding during period .....................

462,077,873

462,199,275

483,478,398

Notice regarding the appropriate use of the financial forecasts
1. This document contains revisions to the interim and full year business forecasts announced on May 9, 2008.
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.
3. As of the current consolidated fiscal year, Accounting Standards for Quarterly Reporting (Accounting Standards Board of Japan Article 12) andApplication Guidelines related to Accounting Standards for Quarterly Reporting (Accounting Standards Board of Japan Article 14) will beapplied. Furthermore, MGC Group prepares its quarterly consolidated financial statements in accordance with the Regulations Concerning
Quarterly Financial Statements.

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SUMMARY OF FINANCIAL STATEMENTS (Consolidated)
Note: All comparisons are with the first quarter of the previous fiscal year, unless stated otherwise.

1. Consolidated Operating Results
Consolidated net sales for the Mitsubishi Gas Chemical Company, Inc. group of companies(“MGC Group”) for the first quarter period (April 1, 2008 to June 30, 2008) of the fiscal year
ending March 31, 2009 rose 4.7%, or ¥6.0 billion, to ¥133.9 billion. Consolidated operating
income decreased 56.5%, or ¥6.8 billion, to ¥5.2 billion. Consolidated ordinary income decreased
37.5%, or ¥7.6 billion, to ¥12.6 billion, and consolidated net income for the three months
decreased 32.5%, or ¥4.4 billion, to ¥9.1 billion.
Revenues increased due to rising market prices for methanol and other products. However,profits decreased substantially due to a softening in the isophthalic acid market, lower sales
volumes of polycarbonate sheets and films and electronic materials, and rising raw material andfuel costs, in addition to lower margins as a result of higher fixed costs including depreciation
costs and repair costs.
Results by business segment
Natural Gas Chemicals Segment
Net sales in this business segment rose 17.8%, or ¥6.1 billion, to ¥40.8 billion. Operating income
declined ¥1.1 billion, to a loss of ¥0.8 billion.
In the methanol business, revenue increased as a result of higher sales prices than those of thefirst quarter of the previous year. The methanol market slowed slightly at the beginning of thefiscal year under review, having surged in the early fall of 2007. Income from overseas methanol
producing companies accounted for by the equity method decreased slightly due to the effect ofyen appreciation.
Sales of methanol and ammonia derivatives were firm; however, higher fixed costs, including
repair costs and exploration costs, resulted in an operating loss.
Revenue from the sale of enzymes and coenzymes was roughly in line with the same period in
the previous year, due to a decline in sales prices—despite an increase in sales volumes ofCoenzymeQ10.
Aromatic Chemicals Segment
Net sales in this business segment rose 2.6%, or ¥0.9 billion, to ¥38.3 billion, while operating
income decreased 57.9%, or ¥2.2 billion, to ¥1.6 billion.
In the specialty aromatic chemicals business, sales volumes of meta-xylenediamine,nylon-MXD6, and aromatic aldehydes increased. However higher depreciation costs, rising
prices for mixed xylene as the raw material, and yen appreciation resulted in a decrease inearnings.
Market conditions for isophthalic acid worsened as a result of intensifying competition, which
stemmed from enhancements to supply capacity by MGC Group and its competitors. As a result,earnings from sales of isophthalic acid decreased significantly.
Specialty Chemicals Segment
Net sales in this business segment decreased 0.1%, to ¥36.5 billion, and operating income
decreased by 34.5%, or ¥1.2 billion, to ¥2.4 billion.
In the inorganic chemicals business, hydrogen peroxide trended favorably, while in electronic
chemicals higher sales volumes mainly for liquid crystal applications resulted in increased
revenue and earnings.
In the engineering plastics business, polyacetal recorded robust performance. However, adecline in sales volumes of polycarbonate sheets and films used in the manufacture of flat panel

3/4displays had a substantial impact on the business, resulting in lower earnings.
Information & Advanced Materials Segment
Net sales in this business segment fell 5.8% or ¥1.1 billion, to ¥18.0 billion, while operating profit
declined by 45.4%, or ¥1.8 billion, to ¥2.2 billion.
Revenue and earnings from sales of materials for printed circuit boards declined, due to lower
sales volumes as a result of weaker demand mainly for BT resin-based printed circuit board
materials used in high-performance mobile phones and other semiconductor packaging
applications.
Revenues from sales of oxygen absorber AGELESS® were roughly in line with the same periodof the previous year, reflecting intensifying competition in domestic food packaging sector.
As of the current consolidated fiscal year, Accounting Standards for Quarterly Reporting (Accounting Standards
Board of Japan Article 12) and Application Guidelines related to Accounting Standards for Quarterly Reporting(Accounting Standards Board of Japan Article 14) will be applied. As a result, the accounting standards used in
the consolidated financial statements for the fiscal quarter under review differ from those used for the same
period of the previous fiscal year, and therefore comparisons with the same period of the previous year areincluded for reference purposes only.

2. Consolidated financial position
Total consolidated assets as of June 30, 2008 were ¥602.4 billion, ¥1.0 billion higher than at theend of the previous fiscal year. This was primarily because of increases in investment securities
and tangible fixed assets. Interest-bearing liabilities increased ¥1.1 billion to ¥151.7 billion. Net
assets were ¥311.9 billion, roughly in line with the same period of the previous fiscal year, due tonegative factors such as foreign currency translation adjustments arising from a stronger yen,which offset gains in evaluation of other investment securities. The shareholders’ equity ratio was50.2%.

3. Consolidated forecasts for the fiscal year ending March 31, 2009
In the interim period under review, profitability is expected to decline as a result of stagnating
sales of polycarbonate sheets and films and materials for printed circuit boards, and intensifying
competition in the isophthalic acid market, despite rising market prices for methanol and otherproducts. Rising raw material and fuel costs are also expected to have an impact on overallprofitability.
For this reason, although net sales in the interim period ending September 30, 2008 areexpected to be in line with the initial forecast, interim operating income and ordinary income areeach expected to decline.
From the third quarter of the current fiscal year onward, product sales price revisions areexpected to improve profitability and demand for printed circuit board materials is expected torecover. However, the conditions seen in the second quarter in polycarbonate sheets and films
and isophthalic acid markets are expected to continue.
Given this situation, although net sales in the fiscal year ending March 31, 2009 are expected tobe in line with the initial forecast, operating income for the full year is expected to fall short ofinitial forecasts.
Regarding ordinary income for the full year, the methanol market, which was expected to decline
substantially in the third quarter of the year is now forecast to continue to record high prices,
resulting in higher equity in earnings of affiliates and offsetting the decline of operating income.

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