Cosmo Oil : Submission of Notification to the Japan Fair Trade Commission in relation to the Intention of Share Acquisition of Maruzen Petrochemical Co., Ltd. (Incorporation to the consolidated accounts)

Cosmo Energy Holdings Co., Ltd. (Representative Director & CEO: Keizo Morikawa)(hereinafter, CEH) announced that submission had been made yesterday to the Japan Fair Trade Commission in relation to the intention of share acquisition of Maruzen Petrochemical Co., Ltd.(hereinafter, MPC), an affiliate company currently accounted for under the equity method. CEH is in discussion with other shareholders of MPC in acquiring the shares which they own in order to incorporate MPC into CEH's consolidated accounts.

CEH intends to conclude the transaction agreement with the existing shareholders of MPC and complete the share acquisition to incorporate MPC into CEH's consolidated accounts by the end of March 2016 subject to approval by the Japan Fair Trade Commission.

1. Reason of Share Acquisition

MPC owns and operates one of the most competitive naphtha crackers in Japan but the petrochemical industry faces increasing competition in the future for reasons such as the North American and Chinese competitors producing products from low cost feedstock, slowing demand growth in China and the declining domestic demand.

Under such business environment, this acquisition will allow CEH to optimize its petroleum and petrochemical business operations, further strengthening its cost competitiveness. Furthermore, this transaction leads to the possibility of increasing the cost competitiveness for the whole industrial zone in the area (CEH - MPC - Petrochemical derivative producers)

2. Summary of MPC

(1) Company Name	Maruzen Petrochemical Co., Ltd.
(2) Registered Address	1-1, Irifune 2-chome, Chuo-ku, Tokyo
(3) Name & Title of Representative	Shun Fujii (Representative Director, President)
(4) Primary Business	Petrochemical Business (Production, Sales, Etc.)
(5) Paid-in-Capital	10,000 MM JPY
(6) Date of Establishment	October 10, 1959
(7) Shareholders	12.00% Ube Industries Ltd. 10.00% Cosmo Matsuyama Oil Co., Ltd. 4.00% The Bank of Tokyo-Mitsubishi UFJ Ltd. 2.00% KH Neochem Co., Ltd. (9.00%) (Treasury Shares)
(8) Relationship with Cosmo	Capital Ties	CEH owns 6,000,000 of MPC shares (30.00%) and is accounted for under the equity method. In addition, Cosmo Matsuyama Oil Co., Ltd., 100% subsidiary of Cosmo Oil Co., Ltd., own 2,000,000 shares (10.00%) of MPC.
	Human Resources	Keizo Morikawa, Representative Director & CEO of CEH and Hiroshi Kiriyama, Director of CEH are both also directors of MPC.
	Business	Cosmo Oil Co., Ltd. (100% subsidiary of CEH) and Cosmo Matsuyama Oil Co., Ltd. (100% subsidiary of Cosmo Oil Co., Ltd.) both market petrochemical feedstock and products to MPC
(9) Financials for the most recent 3 years
Fiscal Term	End-March 2013	End-March 2014	End-March 2015
Consolidated Net Asset	91,673 MM JPY	98,592 MM JPY	103,228 MM JPY
Consolidated Total Asset	210,847 MM JPY	236,789 MM JPY	215,417 MM JPY
Consolidated Turnover	421,636 MM JPY	568,422 MM JPY	549,484 MM JPY
Consolidated Operating Profit	-55 MM JPY	8,921 MM JPY	2,743 MM JPY
Consolidated Ordinary Profit	1,278 MM JPY	11,023 MM JPY	6,287 MM JPY
Net Income attributable to parent company shareholders	977 MM JPY	7,058 MM JPY	4,151 MM JPY

*The shares of MPC held by CEH has been transferred from Cosmo Oil Co., Ltd. on January 1, 2016 through company split.

The details of the transaction (number of shares purchased, name of the sellers, etc.) will be announced upon final decision.

End