Idemitsu Kosan : Establishment of a Subsidiary (Investment Corporation) in China

〒100-8321 東京都千代田区丸の内三丁目１番１号

TEL:[phone]FAX：[phone]

http://www.idemitsu.co.jp

April 23, 2019

Press Release

Idemitsu Kosan Co.,Ltd.

Establishment of a Subsidiary (Investment Corporation)

in China

Idemitsu Kosan Co.,Ltd. (Head Office: Chiyoda-ku, Tokyo; Representative Director

and CEO: Shunichi Kito; hereinafter, the "Company") hereby announces that the Company established an investment corporation in the China (Shanghai) Pilot Free Trade Zone on April 19, 2019, with the purpose of enhancing financial governancein China.

1.Background and Objective

The Company does business in China through seven local corporations under the control of four departments, namely, the Lubricants, Electronic Materials, Performance Chemicals, and Coal Business Departments.

Setting these operations as key strategic growth areas in business strategies of the new integrated company, the Company has been pouring its efforts and resources into them. The Company has been expanding business backed by steady economic development in China and other growth markets in Asia and needs to respond properly and efficiently to fund demand from the local corporations going forward. To this end, the Company has decided to establish an investment corporation, thereby providing support, mainly financial, to each business company.

Through this initiative, the Company will build an efficient operating structure in China and promote business expansion in growth areas and markets.

2.Outline of Corporation

(1) Name:		IDEMITSU (SHANGHAI) HOLDINGS CO., LTD.
(2) Location:		China (Shanghai) Pilot Free Trade Zone
(3)	Date of establishment:	April 19, 2019
(4)	Capital:	US$30 million (about ¥3.4 billion)
(5) Ownership:		100% owned by the Company
(6)	Representative:	Mr. Hiroaki Yashima

For inquiries regarding this press release, please contact the following:

Public Relations Section, Public Relations Department, Idemitsu Kosan Co.,Ltd.

URL https://www.idemitsu.com

(Reference)Our Business Activities in China