Message to Investors

Following the management concept of “making contributions towards development in harmony with society through the creation of a diverse range of value based on chemistry,” Mitsubishi Gas Chemical Company and its group members have been striving to achieve sustainable growth. “Kyoso ２００８” the group’s three-year medium-term management plan for the period starting in FY 2006, employed the slogans of “shifting focus to growth” and “strengthening our presence in growing Asian markets.” Following these policies, we have been investing actively in Japan and abroad and working to prepare and strengthen our management foundation, including group management, environment and safety.

Reflecting results achieved under this plan, in April 2009 we started a new three-year medium-term management plan, entitled “” The plan sets out a group vision of “aiming to realize CSR in all its activities while developing and growing sustainably on a global stage as a highly differentiated, widely recognized chemicals group operating from a strong platform of proprietary technology.’” Our basic policies are to “strengthen and expand our core business,” “accelerate development and commercialization of new products” and “improve total enterprise quality in support of sustainable growth,” and we implement a variety of measures based on these policies.

Specifically, we are pursuing a differentiation strategy tailored to each business, with “chemical chain” products that are highly competitive on the global market (from upstream basic chemicals to downstream derivatives, including methanol, meta-xylene, polycarbonate, and hydrogen peroxide) and “high performance” products with high added value that can contribute significantly to future earnings (including meta-xylene diamine, electronic chemicals, BT materials, and Ageless oxygen absorber). Among these, we position our core and next core businesses as “superior businesses” and “growth businesses” and concentrate our management resources in these areas. Research and development, moreover, shall focus on growth areas. Further, we will focus on growth areas as to research and development and mobilize our group R&D resources to accelerate development and commercialization of new products.

By addressing these themes, we aim to achieve the consolidated financial targets of JPY 550 billion in sales, JPY 40 billion in operating income, JPY 50 billion in ordinary income, ROA (Ordinary income on Total assets) of 9.0%, and a D/E (debt/equity) ratio of under 0.6 or under in March 2012. Hereafter, we will strive to maximize the overall group’s corporate value. In closing, we would like to thank our shareholders and investors for their continuing support and understanding.

Kazuo Sakai
Representative Director,
President