Mitsubishi Chemical : Condensed Consolidated Financial Information for the First Half of the Fiscal Year Ending March 31, 2018

November 2, 2017

1. Business Results for the First Half of the Fiscal Year Ending March 31, 2018 ("FY2017") (Business period: April 1, 2017 to September 30, 2017)

   Millions of Yen
   The First Half of the Current Fiscal Year ("FY2017")	The First Half of the Previous Fiscal Year ("FY2016")
   April 1, 2017 - September 30, 2017	April 1, 2016 - September 30, 2016
2. Results of Operations:

   Sales revenue	1,804,766	1,586,259
   Core operating income*	192,292	136,331
   Operating income	185,328	120,068
   Earnings before taxes	180,209	111,620
   Net Income	131,320	109,147
   Net income attributable to owners of the parent	100,478	79,154
   Comprehensive income	175,026	42,241

   * Core operating income: Operating income excluding special items

   (Yen)

   Earnings per share - Basic	69.81	54.04
   - Diluted	64.56	54.00

3. Segment Information: [Sales Revenue by Business Segment]

   Performance Products	560,747	523,979
   Chemicals	571,581	441,964
   Industrial Gases	302,160	265,568
   Health Care	273,175	263,352
   Others	97,103	91,396
   Total	1,804,766	1,586,259

   [Core Operating Income (Loss) by Business Segment]

   Performance Products	50,848	46,997
   Chemicals	71,854	16,679
   Industrial Gases	28,063	24,379
   Health Care	40,959	48,986
   Others	3,450	3,477
   Elimination & corporate	(2,882)	(4,187)
   Total	192,292	136,331

   Millions of Yen
   As of September 30, 2017	As of March 31, 2017

4. ) Financial Position:

   Total assets	4,576,127	4,463,547
   Total equity	1,838,941	1,698,197
   Equity attributable to owners of the parent	1,209,403	1,091,398
   Ratio of equity attributable to owners of the parent to total assets (%)	26.4	24.5

   Millions of Yen
   The First Half of the Current Fiscal Year ("FY2017")	The First Half of the Previous Fiscal Year ("FY2016")
   April 1, 2017 - September 30, 2017	April 1, 2016 - September 30, 2016

5. Cash Flows:

Net cash provided by (used in) operating activities	189,173	195,607
Net cash provided by (used in) investing activities	(27,390)	(124,273)
Net cash provided by (used in) financing activities	(113,922)	(23,916)
Cash and cash equivalents at end of the period	416,198	281,575

Note:

The Company has reclassified business segments from FY2017. Accordingly, segment information for FY2016 has been restated to match.

6. Forecast for the Current Fiscal Year

   Millions of Yen
   FY2017
   April 1, 2017 - March 31, 2018
   Sales revenue	3,700,000
   Core operating income	365,000
   Operating income	345,000
   Net income attributable to owners of the parent	180,000

   (Yen)

   Earnings per share - Basic 125.06

7. Business Performance and Financial Position
(1) Business Performance Consolidated Performance for the First Half of the Fiscal Year Ending March 31, 2018 (Fiscal 2017): Six Months Ended September 30, 2017 Overview of General Performance

The business environment surrounding the Mitsubishi Chemical Holdings Group during the first half of fiscal 2017 remained generally favorable, due primarily to continuing overall sales growth, especially in the Performance Products domain, as well as continued strong market prices for petrochemicals such as MMA and other products in the Industrial Materials domain.

Against this background, sales revenue for the first half of fiscal 2017 increased by ¥218.5 billion, or 13.8% year on year, to ¥1,804.8 billion. Profit increased significantly year on year, as follows. Core operating income rose by ¥56.0 billion, or 41.0% year on year, to ¥192.3 billion, and operating income was up ¥65.2 billion, or 54.4% year on year, at ¥185.3 billion. Earnings before taxes rose by ¥68.6 billion, or 61.4% year on year, to ¥180.2 billion. Net income attributable to owners of the parent grew ¥21.3 billion, or 26.9% year on year, to ¥100.5 billion, due to a decrease in tax expenses associated with recognition of deferred tax assets relating to the discontinued business transfer in the same period of the previous fiscal year.

Overview of Business Segments

The overview of financial results by business segment for the first half of fiscal 2017 is shown below.

Gains or losses by segment are stated with core operating income which excludes gains or losses from special items including losses incurred by business withdrawals, streamlining, and others.

In the following sections, all comparisons are with the same period of the previous fiscal year unless stated otherwise.

Note:

From the first quarter of fiscal 2017, new business segments are used for the announcement of financial results. The business segments were reviewed and reclassified into "Performance Products, Chemicals," "Industrial Gases," and "Health Care," based on the following factors.

Mitsubishi Chemical Holdings integrated three consolidated subsidiaries - Mitsubishi Chemical Corporation, Mitsubishi Plastics, Inc., and Mitsubishi Rayon Co., Ltd. - into one company, and established the new Mitsubishi Chemical Corporation on April 1, 2017. This was executed in consideration of the need to establish an organizational structure that can take full advantage of each company's resources and strengths to address a rapidly changing business climate and drive the expansion of their business toward accomplishing the goals of the five-year medium-term management plan, APTSIS 20, which began in fiscal 2016.

Taking this opportunity, Mitsubishi Chemical Holdings, the holding company of the four operating companies - the new Mitsubishi Chemical, Mitsubishi Tanabe Pharma Corporation, Life Science Institute, Inc., and Taiyo Nippon

Sanso Corporation - stepped up its efforts to plan medium-term strategies for each of four business segments (Performance Products, Chemicals, Industrial Gases, and Health Care) in which four operating companies are mainly engaged, enhance monitoring of APTSIS 20, and shift to a management system that accelerate growth strategies for these four business segments.

Business Domains	Business Segments	Business Sub-Segment
		Busiensses
Performance Products	Performance Products	Functional Products	Electronics and displays	Optical films, Electronics and displays, Acetyl
			High performance films	Packaging films, Industrial films
			Environment and living solutions	Aqua and separator solutions, Infrastructure solutions and agricultural materials
			Advanced moldings and composites	High performance engineering plastics, Fibers and textile, Carbon fiber and composite materials, Functioinal moldings and composites, Almina fiber and light metal products
		Performance Chemicals	Advanced polymers	Performance polymers, Engineering polymers, Sustainable resources
			High performance chemicals	Performance chemicals, Performance materials, Food ingredients
			New energy	Lithium ion battery materials, Energy transduction device materials
Industrial Materials	Chemicals	MMA	MMA	MMA
		Petrochemicals	Petrochemicals	Basic petrochemicals, Polyolefins, Basic chemical derivatives
		Carbon	Carbon	Carbon
	Industrial Gases	Industrial gases
Health Care	Health Care	Pharmaceuticals
		Life science

Performance Products Segment, Performance Products Domain

Sales revenue in this segment increased by ¥36.8 billion, to ¥560.7 billion. Core operating income was up ¥3.9 billion, at ¥50.8 billion.

In functional products, sales of advanced moldings and composites including high-performance engineering plastics, alumina fibers, and other products remained firm, and sales remained steady for films for displays in electronics and displays.

In performance chemicals, sales volumes increased due to growing sales volumes of battery materials for automobiles in the new energy business. In addition, in advanced polymers, market prices for phenol-polycarbonate chain continued firm, and sales volumes increased as the impact of scheduled plant maintenance and repairs during the same period of fiscal 2016 was resolved. Core operating income increased, due primarily to higher sales volumes as a whole, despite a rise in raw material costs for some products.

In addition, during the same period of fiscal 2016, performance was affected by scheduled plant maintenance and repairs, but those issues have been resolved. Improvements also reflect continued firm market prices for phenol-polycarbonate chain in advanced polymers.

Chemicals Segment, Industrial Materials Domain