March 22, 2019
MITSUBISHI GAS CHEMICAL COMPANY, INC.

Notice about the Continuation of the Joint Venture 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), has decided to continue its joint-venture methanol business (Saudi Methanol Company(AR-RAZI)) in Saudi Arabia, whose period expired on November 29, 2018, up to November 29, 2038.

1. Reasons for the Continuation of the Joint Venture Business
As previously announced via the December 4, 2018 press release entitled “Notice about the Methanol Joint
Venture in Saudi Arabia of JSMC, a MGC’s Equity Method Affiliate,” JSMC has been engaged in discussions
regarding the continuation of the aforementioned new scheme joint venture business, with March 31, 2019 set
as the deadline for the final decision. Having performed a comprehensive examination of the agreed newscheme joint venture’s economic rationality, including profitability, the various risk factors it faces and otherconsiderations, JSMC has concluded that it should continue the business.

2. Framework for the New Joint Venture Business
JSMC will pay Saudi Basic Industries Corp. (SABIC) US$1,350 million for the consideration of the transition tothe new scheme of the joint venture business for the period of 20 years. This amount will be paid in equal
annual installments over a period of three years once the approval of governmental authorities charged withensuring fair competition in the relevant countries has been obtained.
With an eye to promoting energy conservation, MGC will also discuss undertaking the commercialization of new
methanol technology with SABIC while considering utilizing such technology to renew its methanol plants.

3. Impact on Operating Results
MGC has not changed its business performance forecasts from those announced in its February 6, 2019 press
release entitled “Revision of Business Performance.” MGC will immediately announce any corrections in theforecasts when they may become necessary in the future.
For your reference, JSMC will amortize US$1,350 million to be paid to SABIC using the straight-line method
over the course of 20 years.
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 EndDecember（8）Stockholders’ Equity

Approx. JPY 69.7 billion（as of the end of December, 2018）（9）Total Assets

Approx. JPY 76.2 billion（as of the end of December, 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 M. Alumar, 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’ EquityApprox. SAR 2,505 million（as of the end of December, 2018）（9）Total Assets

Approx. SAR 6,240 million（as of the end of December, 2018）（10）Shareholders

JSMC: 50％、SABIC: 50％
SAR 1＝ approx. JPY29.6 （as of the end of Dec. 28, 2018）

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