December 4, 2018
MITSUBISHI GAS CHEMICAL COMPANY, INC.

Notice about the Methanol Joint Venture in Saudi Arabia of JSMC,a MGC’s Equity Method Affiliate
Regarding the Saudi Methanol Company (AR-RAZI), whose joint venture agreement is expiring on November 29,
2018, Japan Saudi Arabia Methanol Co., Inc. (JSMC), an equity method affiliate of Mitsubishi Gas Chemical Company,
Inc. (MGC), and Saudi Basic Industries Corp. (SABIC), have agreed that 1) the JSMC will sell 50% of its share in
AR-RAZI (25% of all AR-RAZI shares) to SABIC for 150 million US dollars to make the share-holding ratio 25:75, and2) the final decision whether to exercise JSMC’s option to sell the remaining share, which leads not to continue thejoint venture on AR-RAZI will be made by the end of March 2019. Handled quantity of methanol will be secured as inthe past.
Since the foundation of AR-RAZI in 1980, JSMC and SABIC have worked together in a partnership to continue todevelop the AR-RAZI business. JSMC has discussed with SABIC about the future of AR-RAZI and concluded abasic-overall new scheme of joint venture agreement, which extend the term of the JV by 20 years with thefollowing conditions.
1) JSMC shall pay to SABIC US$1.35 billion for the extension of the term of the joint venture.
2) JSMC and SABIC shall aim at commercialization of new methanol technology to enhance energy saving
effect, and renewal of methanol plants by the new methanol technology.
JSMC is still studying the economic rationality for entering into new joint venture scheme and will make the final
decision on or prior to March 2019 whether to implement the above agreement or to sell the remaining 25% sharesin AR-RAZI to SABIC for 150 million US dollars. MGC will announce the decision as soon as it has been made.
The expected direct impact of the JSMC’s sale of 50% of AR-RAZI shares owned by JSMC on consolidated
MGC financial performance includes a loss of approximately 5.0 billion yen*. The change in JSMC’s equity shareon AR-RAZI will also likely affect equity method profit (loss) to MGC. However, since the transfer of the shares will
be effective only after the approval of governmental authorities, the fiscal year on which the above mentioned
financial impacts have effect is not yet determined.
*Due to the past exchange rate difference affect to the foreign currency translation adjustment and tax on
JSMC for the share selling profit.
END

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（For reference）
１. Overview of Japan Saudi Arabia Methanol Company, Inc.（JSMC）（1）Company NameJapan Saudi Arabia Methanol Company, Inc.

（2）Location

2-2-3 Uchisaiwai-cho, Chiyoda-ku, Tokyo（3）Rep.Name/Title

Akira Ishiwada,Chairman & CEO（4）Business Description(a) Investments in and financing as well as business guidance
for the company producing and distributing methanol in theKingdom of Saudi Arabia(b) Import and distribution of methanol produced by thecompany stated in item (a) above（5）Capital StockJPY 2,310 million（6）Date of Foundation

November12, 1979

（7）Fiscal Year End

December（8）Stockholders’ Equity*

Approx. JPY 70.7 billion（as of November 30, 2018）（9）Total Assets*

Approx. JPY 76.4 billion（as of November 30, 2018）（10）Shareholders

MGC: 47％, JICA and other 6 companies

２. Overview of Saudi Methanol Company（AR-RAZI）（1）Company NameSAUDI METHANOL COMPANY（2）Location

Al-Jubail Industrial City, Kingdom of Saudi Arabia（3）Rep.Name/Title

Ahmed T. Al-Shaikh, Chairman（4）Business Description

Production and distribution of methanol（5）Capital StockSAR 259million（6）Date of Foundation

February9, 1980

（7）Fiscal Year End

December（8）Stockholders’ Equity*

Approx. SAR 2,250 million (USD 600 million)（as of November30, 2018）（9）Total Assets*

Approx. SAR 3,720 million（as of November 30, 2018）（10）Shareholders

JSMC: 50％、SABIC: 50％*The numbers of “Stockholders’ Equity” and “Total Assets” are assumptions.
SAR 1＝ approx. JPY30.3 （as of Nov 30,2018）

Corporate Communications Division MITSUBISHI GAS CHEMICAL COMPANY, INC.
TEL: +81-3-3283-5041 https://www.mgc.co.jp/eng/2