November 1, 2018
MITSUBISHI GAS CHEMICAL COMPANY, INC.

Notice of the Period ofthe Methanol Joint Venture Agreement in Saudi Arabiaof JSMC, a MGC’s Equity Method Affiliate
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 started in 1980 the fifty-fifty
methanol operations joint venture through a newly established Saudi Methanol Company (AR-RAZI).
The joint operation agreement on AR-RAZI is scheduled to be expired on November 29, 2018.
JSMC and SABIC have been negotiating details of the AR-RAZI joint venture scheme, intending toextend the current agreement. However, the both companies have yet to reach their final agreement
even today, when the second results of MGC is due to be disclosed along with forecasts for the current
fiscal year end. The discussions are still underway, considering all possibilities. MGC will immediately
disclose the fact when finalized the negotiations between JSMC and SABIC.
The impact of this matter on MGC’s consolidated business performance is not included in the business
forecasts announced today, since the possible effects have yet to be determined. MGC will immediately
announce any corrections in the business forecasts that may be necessary in the future.
ENDFor reference
1. Equity in earnings of affiliates in relation to JSMC, stated in the Consolidated Statements of Income:annual average of approximately JPY 12.0 billion (from fiscal 2008 to 2017)

2. JSMC’s portion of the investments in securities posted in the Consolidated Balance Sheet:approximately JPY 41.1 billion* (as of the end of September 2018)*Of which assets arising from the AR-RAZI stocks are approximately JPY 21.8 billion
MGC has issued no debt guarantees for JSMC.

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3. 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 businessguidancefor

thecompany

producinganddistributing methanol in the Kingdom of SaudiArabia(b) Import and distribution of methanol produced bythe company stated in item (a) above（5）Capital StockJPY 2,310 million（6）Date of Foundation

November12, 1979

（7）Fiscal Year EndDecember（8）Stockholders’ Equity

JPY 33,196 million（as of December31, 2017）（9）Total Assets

JPY 39,649 million（as of December31, 2017）（10）Shareholders

MGC: 47％, JICA and other 6 companies

4. 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 EndDecember（8）Stockholders’ Equity

SAR 3,064million（as of December31, 2017）（9）Total Assets

SAR 4,501million（as of December31, 2017）（10）Shareholders

JSMC: 50％、SABIC: 50％
SAR 1＝about JPY30.3（the end of September, 2018）

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