SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS
Results for the Third Quarter of Fiscal Year 2014
(April 1 – December 31, 2014)

February 4, 2014

MITSUBISHI GAS CHEMICAL COMPANY, INC.
Listed exchanges:

First section of the Tokyo Stock Exchange

Stock Code:

4182

URL:

http://www.mgc.co.jp

President:

Toshikiyo Kurai

Inquiries:

Yoshihisa Kashima
General Manager, Corporate Communications Division
Tel: +81-3-3283-5041

Scheduled date of payment of dividend:-

1. Summary of Consolidated Results for the Third Quarter of Fiscal Year 2014
(April 1, 2014 – December 31, 2014)
1) Operating results
Millions of yen, rounded down
Percentage figures denote change compared to equivalent period of previous year

April 1 – December 31, 2014

April 1 – December 31, 2013

Change %Net sales......................................................................................
Operating income (loss)...............................................................
Ordinary income (loss)................................................................
Net income (loss)................................................................
Net income (loss) per share (¥) ...................................................
Fully diluted net income (loss) per share (¥) ................................

401,426
11,39934,38329,69565.75-

Change %

0.9
(6.3)
20.6
123.2

397,760
12,162
28,52013,30329.45--(Note) Comprehensive income: third quarter of FY 2014：¥44,442 million [44.5％] ; third quarter of FY 2013：¥30,751 million [-％]

2) Financial position
Millions of yen, rounded down

As of December 31, 2014
706,938
Total assets .................................................................................
362,352
Net assets....................................................................................
49.5
Equity ratio (%) ............................................................................

As of March 31, 2014
657,838
323,858
47.5(Note) Shareholders’ equity as of December 31, 2014: ¥349,826million; as of March 31, 2014: ¥312,226million

2. Cash Dividends
FY 20147.00
7.00(Forecast)
1400 (Forecast)Interim dividend per share (¥) ......................................................
Year-end dividend per share (¥) ..................................................
Annual dividend per share (¥)......................................................
(Note) Revision of cash dividend forecast during this period: None

FY 2013
6.00
6.00
12.00

3. Consolidated Business Forecasts for Fiscal Year 2014
(April 1, 2014 – March 31, 2015)
Millions of yen, rounded down
Percentage figures denote change compared to equivalent period of previous year

Full Year
Change %Net sales ................................................................................................................................
Operating income (loss) ................................................................................................
Ordinary income (loss) ................................................................................................
Net Income (loss) ....................................................................................................................
Net income (loss) per share (¥) ...............................................................................................
(Note) Revision of consolidated business forecasts during this period: None1540,000
14,00040,00030,000
66.42

1.0
21.9
29.8
101.1

4. Other Information
1) Transfer of important subsidiaries during the period under review: None
(Transfers of certain subsidiaries resulting in changes in the scope of consolidation)2) Adoption of simplified accounting methods: None
3) 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: None
4. Restatement of corrections: None4)

Number of shares outstanding (ordinary shares)
December 31, 2014

March 31, 2014

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

483,478,398

483,478,398

Number of treasury shares at end of period ................................

31,813,634

31,800,380

April 1 – December 31, 2014
451,672,518

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

April 1 – December 31, 2013
451,698,860(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 and projections
at the time of publication. A number of factors could cause actual results to differ materially from expectations.

21. Consolidated business results for this period
Note: All comparisons are with the same period of the previous fiscal year, unless stated otherwise.

(1)Consolidated operating results
Overview of results(Billions of yen)
FY2013/3Q

FY2014/3Q

ChangeChange (%)

Net Sales

397.7

401.4

3.6

0.9%

Operating income

12.1

11.3

(0.7)

(6.3%)

Equity in earnings of affiliates

16.3

23.9

7.5

46.0%

Ordinary income

28.5

35.5

7.0

24.8%

Net income

13.3

30.8

17.5

131.6%The MGC Group achieved an increase in net sales compared with the same prior-year period. Businessrestructuring resulted in lower sales volumes for products such as purified isophthalic acid (PIA). This negative
impact, however, was more than offset by positive factors such as higher sales volumes for engineering plastics
and methanol.
Group operating income was lower than the prior-year level. Positive contributions came from the improved
profitability of export products thanks to the weaker yen, as well as from higher earnings for polycarbonates
primarily due to a reduction in depreciation expenses. However, these effects were overshadowed by declines in
the profitability of products such as electronic materials, methanol derivatives, general-purpose aromatic chemicals,
and polyacetal.
Ordinary income increased from the same period of last year. Despite the lower operating income, equity inearnings of overseas methanol producing companies grew due to the market price hike in the beginning of the
fiscal year and the weaker yen.
Net income was much higher than in the same period of the previous year, in which the MGC polycarbonate
subsidiary in China recognized an impairment loss.

Results by business segment
Natural Gas Chemicals Company(Billions of yen)
FY2013/3Q

FY2014/3Q

ChangeChange (%)

Net Sales

130.3

138.5

8.1

6.3%

Operating income

2.7

1.6

(1.0)

(39.9%)

Ordinary income

14.7

22.2

7.5

51.5%

Net sales grew due to factors such as the weaker yen and the higher sales volume for methanol.
Operating income was lower due to negative impacts such as drops in the margins of methanol andammonia-based chemicals and an increase in fixed costs.
Equity in earnings of overseas methanol producing companies grew due to the market price hike in the beginning3

of the fiscal year and the weaker yen, resulting in an increase in ordinary income.

Aromatic Chemicals Company(Billions of yen)
FY2013/3Q

FY2014/3Q

ChangeChange (%)

Net Sales

109.6

95.2

(14.3)(13.1%)

Operating income

3.5

2.9

(0.5)

(15.1%)

Ordinary income

3.3

1.1

(2.1)

(2.1%)A substantial decline was recognized in net sales primarily because business contraction led to a reduction in thesales volume of purified isophthalic acid.
Operating income declined from a year earlier. While the weaker yen helped improve the profitability in exports ofmeta-xylenediamine and Nylon-MXD6, the more difficult business environment made the phthalic anhydride andpurified terephthalic acid (PTA) operations less profitable.
Ordinary income was also lower, because the equity method company that decided to quit its PTA operations
recorded a loss.

Specialty Chemicals Company(Billions of yen)
FY2013/3Q

FY2014/3Q

ChangeChange (%)

Net Sales

114.6

122.5

7.9

6.9%

Operating income

3.3

5.5

2.1

65.7%

Ordinary income

3.7

5.6

1.9

50.8%

Net sales increased due to growth in the sales volumes for polycarbonates and polyacetal.
Operating income also rose from the same prior-year period. While polyacetal suffered lower earnings due tohigher fixed costs resulting from an increase in capacity, super-pure hydrogen peroxide showed steady growth insales volume. A further positive contribution came from polycarbonates, whose operating results improved due to a
reduction in depreciation expenses, successful work on improving profitability, and higher sales volumes for
specialty products.

Information & Advanced Materials Company(Billions of yen)
FY2013/3Q

FY2014/3Q

ChangeChange (%)

Net Sales

114.6

122.5

7.9

6.9%

Operating income

3.3

5.5

2.1

65.7%

Ordinary income

3.7

5.6

1.9

50.8%

Net sales increased due to the strong development of sales volumes for BT materials.
Operating income was lower than a year earlier. Despite the steady development of oxygen absorber sales,
electronic materials were less profitable due to an increase in costs incurred as the Thai site started commercial
operation.

4

Other(Billions of yen)
FY2013/3Q

FY2014/3Q

ChangeChange (%)

Net Sales

0.4

0.4

0.0

7.6%

Operating income

0.1

0.1

(0.0)

(0.5%)

Ordinary income

1.4

1.2

(0.2)

(14.5%)

5

2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets
Millions of yen, rounded down
As of March 31, 2014

As of December 31, 2014

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

38,772

52,743

Trade notes and accounts receivable ..........................................

127,817

139,822ASSETS
Current assets

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

2,130

130

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

61,64164,301Work in progress.........................................................................

10,31911,260Raw materials and supplies .........................................................

27,23228,549Other............................................................................................

20,52721,516

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

(798)

(920)

Total current assets .....................................................................

287,642

317,403

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

59,27961,030Machinery, equipment and vehicles, net ...................................

71,63773,223

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

60,39456,782

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

191,311

191,036

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

3,169

3,565

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

3,169

3,565

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

167,296

187,571

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

8,499

7,454

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

(81)

(92)

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

175,714

194,932

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

370,195

389,535

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

657,838

706,938

Noncurrent assets
Property, plant and equipment

Intangible assets

Investments and other assets

6

Consolidated Quarterly Balance Sheets (contd.)
Millions of yen, rounded down
As of March 31, 2014

As of December 31, 2014

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

71,66589,725

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

75,85985,859

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

1,570

1,061

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

5,016

2,609

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

267

303

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

24,51828,039Total current liabilities ...............................................................

178,897

207,599

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

25,00025,000Long –term loans payable .............................................................

83,481

63,476

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

1,220

1,921

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

9,232

9,680

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

3,582

3,667

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

32,56433,241

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

155,081

136,986

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

333,979

344,585

41,97041,970

LIABILITIESCurrent Liabilities

Noncurrent liabilities

NET ASSETS
Shareholders’ equity

Capital stock..................................................................................
Capital surplus ..............................................................................

35,59535,595Retained earnings .........................................................................

239,831264,310

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

(8,119)(8,128)

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

309,277

333,748

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

11,384

17,512

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

206

206

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

(7,305)(602)

Remeasurements of defined benefit plans ....................................

(1,337)(1,037)

Accumulated other comprehensive income

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

2,949

16,078

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

11,632

12,525

Total net assets ........................................................................

323,858

362,352

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

657,838

706,9387

(2) Consolidated Quarterly Statements of Income
Millions of yen, rounded down
April 1 - December 31
2013April 1 - December 31
2014

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

397,760

401,426

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

339,185

343,842

Gross profit ...................................................................................

58,57457,584

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

46,411

46,184

Operating income ..........................................................................

12,162

11,399Non-operating income

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

131

143

Dividend income.........................................................................

1,362

1,953

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

16,396
3,217

22,8302,574

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

21,10827,501

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

2,277

1,885

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

1,142

976

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

1,331

1,655

Non-operating expenses

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

4,750

4,517

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

28,52034,383Compensation income ...............................................................

-

1,055

Gain on rights and interests .......................................................

-

792

Gain on sales of noncurrent assets ............................................

361

329

Gain on bargain purchase..........................................................

-

198

Gain on sales of investment securities .......................................

245-

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

238-

Total extraordinary income .....................................................

845

2,376

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

240

1,143

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

11,525

797

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

-

476

Provision for environmental measures .......................................

-

246

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

382-

Compensation for products ........................................................

339-

Loss on fire accident ..................................................................

120-

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

12,607

2,664

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

16,75834,095

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

3,637

3,701

Net income before minority interests .....................................................

13,12030,393

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

(182)

697

Net income.....................................................................................

13,30329,695Extraordinary income

Extraordinary losses

8

(Consolidated Quarterly Statements of Comprehensive Income)Millions of yen, rounded down
April 1 – December 31
2014April 1 - December 31
2013

13,12030,393

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

5,068

6,060

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

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

4,054

4,156

Remeasurements of defined benefit plans................................

-

258

Share of other comprehensive income of associates
accounted for using equity method ............................................

8,507

3,573

17,63014,048Comprehensive Income ................................................................................................ 30,751

44,442

Total comprehensive Income Attributable to Owners of theparent ................................................................................................

29,99142,825759

1,617

Total other comprehensive Income ................................................................

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

9

3. Consolidated Quarterly Segment Information(1) Nine-month period ended December 31, 2013(April 1 – December 31, 2013)
1. Revenue and earnings by segment
Millions of yen, rounded down
Aromatic
chemicals

Specialty
chemicals

Information
andadvancedmaterials

Sales to outside customers ................................
130,372
109,654

114,61242,658461-

397,760

1,451

865

1

96

(9,479)-137,436

111,105

115,478

42,660558(9,479)397,760

Segment income (loss)
14,716[Ordinary income (loss)] ................................

3,301

3,744

4,672

1,494

591

28,520Natural gas
chemicalsInter-segment sales ................................
7,064
Total ................................

Other(Note 1)

Adjustment(Note 2)

Consolidated(Note 3)

Notes：
1. The ‘Other’ segment includes operations not included in the other segments, such as listed related companies and real estate business.
2. The adjustment amounts are as follows:
The ¥591 million segment loss adjustment consists of ¥65 million loss in inter-segment sales, and ¥656 million loss of overall costs notallocated to segments.
Overall costs include SG&A expenses, financing expenses, and other expenses not allocated to segments.
3. Segment income (loss) is based on ordinary income as provided in the quarterly consolidated statement of income.

(2) Nine-month period ended December 31, 2014(April 1 – December 31, 2014)
1. Revenue and earnings by segment
Millions of yen, rounded down
Natural gas
chemicals

Aromatic
chemicals

Specialty
chemicals

Information
andadvancedmaterials

Other(Note 1)

Adjustment(Note 2)

Consolidated(Note 3)

Sales to outside customers ................................
138,549

95,271

122,518

44,589497-

401,426

Inter-segment sales ................................
9,581

1,711

1,026

0

83

(12,402)-148,131

96,983

123,544

44,590580(12,402)401,426

Segment income (loss)
22,191[Ordinary income (loss)] ................................

1,111

5,646

3,336

1,277

819

34,383

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

Notes：
1. The ‘Other’ segment includes operations not included in the other segments, such as listed related companies and real estate business.
2. The adjustment amounts are as follows:
The ¥819 million segment loss adjustment consists of ¥110 million loss in inter-segment sales, and ¥708 million loss of overall costs notallocated to segments.
Overall costs include SG&A expenses, financing expenses, and other expenses not allocated to segments.
3. Segment income (loss) is based on ordinary income as provided in the quarterly consolidated statement of income.

10

SUMMARY OF CONSOLIDATED FINANCIAL STATEMENTS (FY 2014)(billions of yen, rounded down）

Net sales

FY 2013

FY 2014Q3

Q3ChangeChange(%)

FY2013

FY 2014Full Year

Full Year

ResultForecast

397.7

401.4

3.6

0.9

534.4

540.0

Natural Gas Chemicals

137.4

148.1

10.6

7.8

194.8

201.7

Aromatic Chemicals

111.1

96.9

(14.1)(12.7)

141.5

123.7

Specialty Chemicals

115.4

123.5

8.0

7.0

154.5

169.2

Information and Advanced Materials

42.6

44.5

1.9

4.5

55.4

57.2

Other and Adjustment(8.9)(11.8)(2.9)-(11.9)(11.9)

12.1

11.3

(0.7)

(6.3)

11.4

14.0

Natural Gas Chemicals

2.7

1.6

(1.0)

(39.9)

2.7

2.6

Aromatic Chemicals

3.5

2.9

(0.5)

(15.1)

2.8

2.6

Specialty Chemicals

3.3

5.5

2.1

65.7

3.9

6.9

Information and Advanced Materials

4.3

3.0

(1.3)

(29.8)

4.2

4.2

(1.7)

(1.7)

(0.0)

-

(2.3)

(2.5)

Non‐operating profit (loss)

16.3

22.9

6.6

40.5

19.3

26.0

Ordinary income (loss)

28.5

34.3

5.8

20.6

30.8

40.0

Natural Gas Chemicals

14.7

22.1

7.4

50.8

18.4

27.5

Aromatic Chemicals

3.3

1.1

(2.1)

(66.3)

2.1(0.1)

Specialty Chemicals

3.7

5.6

1.9

50.8

3.8

7.0

Information and Advanced Materials

4.6

3.3

(1.3)

(28.6)

4.8

4.2

Other and Adjustment

2.0

2.0

(0.0)

0.5

1.5

0.9

(11.7)

(0.2)

11.4

-

(13.0)( 5.0)

Income before income taxes and minority interests

16.7

34.0

17.3

103.5

17.7

35.0

Net income

13.3

29.6

16.3

123.2

14.9

30.0

Net income (loss) per share (¥)

29.45

65.75

36.30

33.03

66.42

Annual dividend per share (¥)

6.00

7.00

1.00

12.00

14.00

Operating income (loss)

Other and Adjustment

Extraordinary income (loss)※Consolidated subsidiaries: 40 , Affiliates : 13 (As of end of December,2014)11Non‐operating profit (loss)
FY 2013

FY 2014Q3

Q3ChangeChange(%)

FY2013

FY 2014Full Year

Full Year

ResultForecast

Equity in earnings of affiliates

16.3

22.8

6.4

39.2

20.4

28.0

Income (expenses) on financing activities

(0.7)

0.2

0.9

-

(1.0)

－

Foreign currency statements translation adjustment

0.7

1.1

0.4

58.9

(0.3)

－

Other

0.0

(1.2)

(1.2)

-

0.2

(2.0)

Total ：Non‐operating profit (loss)

16.3

22.9

6.6

40.5

19.3

26.0

Compensation income

－

1.0

1.0

－

－

Gain on rights and interests

－

0.7

0.7

－

－

Gain on sales of noncurrent assets

0.3

0.3

(0.0)

(8.8%)

0.3

Gain on bargain purchase

－

0.1

0.1

－

－

Gain on sales of investment securities

0.2

－

(0.2)

－

0.2

Insurance income

0.2

－

(0.2)

－

0.2

Loss (gain) on liquidation of subsidiaries

－

－

－

－

0.1

Business structure improvement expenses

(0.2)

(1.1)

(0.9)

－

(1.5)

Impairment loss

(11.5)

(0.7)

107

－

(11.6)

－

(0.4)

(0.4)

－

－

－

(0.2)

(0.2)

Environmental improvement expensive

(0.3)

－

0.3

－

(0.4)

Compensation for products

(0.3)

－

0.3

－

(0.3)

Loss on fire accident

(0.1)

－

0.1

－

(0.1)

Total ：Extraordinary income (loss)(11.7)

0.2

11.4

－

(13.0)

Extraordinary income (loss)

and associates

Amortization of goodwill

12

－

(5.0)

Consolidated Quarterly Balance Sheets
FY2013Q3FY2014

Q3

ChangeCurrent assets

287.6

287.6

29.7

Property, plant and equipment, Intangible assets

194.4

194.4

0.1

Investments and other assets

194.9

175.7

19.2

Total assets

706.9

657.8

49.0

Interest-bearing liabilities

191.1

204.4

(13.3)

Other liabilities

153.4

129.4

23.9

Total liabilities

344.5

333.9

10.6

Shareholders’ equity

333.7

309.2

24.4

Accumulated other comprehensive income

16.0

2.9

13.1

Minority interests

12.5

11.6

0.8

Total net assets

362.3

323.8

38.4

Total liabilities and net assets

706.9

657.8

49.0

Various index
FY2010FY2011FY2012FY2013

FY2014(Forecast)Investments (Full year)
(Q3)

35.4
25.1

42.4
33.9

30.9
24.3

25.4
18.9

25.0
14.7

Depreciation and amortization (Full year)
(Q3)

29.0
21.5

27.7
20.5

23.0
16.7

23.5
17.5

22.0
17.8

R&D expenditures (Full year)
(Q3)

16.4
11.9

17.4
13.2

15.3
11.5

16.1
12.1

17.3
12.3

Staff

4,979

5,216

5,323

5,445

5,514

ROA

6.5%

4.5%

4.6%

4.8%

5.9%

ROE

6.9%

4.4%

(2.8%)

5.0%

9.3%

Annual dividend (Full year)(first half)

8.0
4.0

12.0
6.0

12.0
6.0

12.0
6.0

14.0
7.0

Exchange rate (average)
Apr-Dec
Apr -Mar

¥87/$

¥79/$

¥80/$

¥99/$

¥107/$

¥86/$

¥79/$

¥83/$

¥100/$¥109/$$277/MT$360/MT$377/MT$383/MT$410/MT$358/MT$388/MT$365/MT$498/MT$349/MT

Methanol market(Assumed Asian average spot price)
Jan-Sep
Oct-Dec13