February 7th, 2014

3rd Petrochemical Conclave

Technologies for Propylene

Derivatives and its Challenges

“Petrochemicals - Global Trends & Opportunities”

Contents

1. History of Friendship between India and Japan

2. Introduction of Mitsubishi Chemical Holdings Corporation

(MCHC) and Mitsubishi Chemical Corporation (MCC)

3. Overview of Indian Economy

4. What Mitsubishi can do for India

5. Indispensability of Domestic Production

6. Other Valuable Mitsubishi Technologies for India’s

Economic Growth

7. Contact Details of Mitsubishi Chemical Corporation

History of Friendship between

India and Japan

History of Friendship between India and Japan

Japanese Emperor and Empress have visited India four times.

1960Dec., 1st, 2013

Japanese Prime

Minister Shinzo Abe

recently visited India

to attend Republic

Day Parade in 2014.

Indian Prime Minister

Manmohan Singh

visited Japan last year.

May 29th, 2013 Jan., 26th, 2014

The tie between

India and Japan

is one of the most

important

relationships for

Japan !!

History of Friendship between India and Japan

Justice Radha Binod PalHe has been highly respected by

Japanese people because of his

fair attitude during military

tribunal in Tokyo after WWII. There

are two monuments specially

dedicated to Justice Pal in Japan.

One is located in Tokyo, the other

one is located in Kyoto.

Netaji Subhas Chandra BoseHe was supreme commander of

Indian National Army and jointly

operated with Japanese Imperial

Army during WWII. His tomb is

located in Tokyo.

Justice Radha Binod Pal’s

monument in Tokyo

Netaji Subhas Chandra

Bose’s Tomb in Tokyo

Introduction of

Mitsubishi Chemical Holdings Corporation

(MCHC)

and

Mitsubishi Chemical Corporation (MCC)

Overview of Mitsubishi Chemical Holdings

Profile＊

Established

Head office**

President

Paid-in capital

Listings

Activities

Business domains

Consolidated net sales

Consolidatedoperating income

Group employees

Website

October 3, 2005

1-1, Marunouchi 1-Chome, Chiyoda-ku, Tokyo

Yoshimitsu Kobayashi

¥50.0 billion (500 million USD)

Tokyo Stock Exchange, Osaka Securities Exchange

Management of the Group companies (development

of Group strategies, allocation of financial resources, etc.)

Performance products, health care, and industrial materials

¥3,088.6 billion (30 billion USD)

¥90.2 billion (1billion USD)

55,131

http://www.mitsubishichem-hd.co.jp/english/

Mitsubishi Chemical Holdings Corporation

Yoshimitsu Kobayashi, ph D

President &

Chief Executive Officer

*All figures are for the year ended March 2013（FY2012）.

The Mitsubishi Chemical Holdings Group is made up of 430 companies: holding company Mitsubishi Chemical Holdings and core operation companies Mitsubishi Chemical,

Mitsubishi Tanabe Pharma, Mitsubishi Plastics, and Mitsubishi Rayon,

as well as 340 consolidated subsidiaries and 52 equity-method affiliates.

Organization of Mitsubishi

100％

Mitsubishi Chemical Holdings Corporation*

Mitsubishi Tanabe Pharma Corporation*

The KAITEKI Institute, Inc.100％

100％Mitsubishi Chemical Holdings America, Inc.

100％Mitsubishi Chemical Holdings (Beijing) Co., Ltd.

Performance Products

Health Care

Industrial Materials

Performance products

Healthcare

Industrial materials etc.

(incl. Petrochemical)

Pharmaceuticals etc. Plastics products

Inorganic fiber materials etc.

Chemicals & plastics, Fibers（AN,MMA)Carbon fiber & Composite materialsWater treatment etc.

100％

100％Mitsubishi Chemical Holdings Europe GmbH

MHCS Corporation100％**

Mitsubishi Chemical Holdings Corporate Staff, Inc.

MHLC LLC100％

Healthy Life Compass Corporation

*: Listed

Consolidated net sales:¥3,088.6 billion

Employees：55,131

Figures for consolidated net sales is for the year ended March 2013（FY2012).

Consolidated net sales:

USD 4.2 billion

100％ 100％56.3％

80％

Consolidated net sales:

USD 4.6billionConsolidated net sales:

USD 19.6 billion

Consolidated net sales:

USD 4.0 billion

**:Group total

Oct. 2005~

Mitsubishi Chemical Corporation

Mitsubishi Plastics, Inc.

Qualicaps Co., Ltd.100％

Apr. 2009~

Nov. 2010~

Jan. 2011~

Nov. 2012~

Apr. 2013~

Apr. 2013~

Mar. 2013~

Mar. 2013~

Jan. 2013~

Oct. 2005~ Oct. 2007~ Apr. 2008~ Apr. 2010~

Mitsubishi RayonCo., Ltd.

Mitsubishi’s Global Network

Europe 78 sites Japan186 Sites

Asia Pacific109 sites

North America49 sites

Central-SouthAmerica6 sites

Africa2 sites

Qualicaps, Inc.(North Carolina, USA)

Qualicaps, Europe S.A.(Madrid, Spain)

Mitsubishi Chemical HoldingsAmerica,Inc.（New York, USA）

Mitsubishi Polyester Film, Inc.(South Carolina, USA)

Mitsubishi Chemical InfonicsPte Ltd.（Singapore）

Tianjin Tanabe SeiyakuCo.,Ltd.（Tianjin, China）

Overseas

35.9%

Japan

64.1%

Year ended March 2013

Sales by region

Lucite International UK Limited(Cassel, UK)

Quadrant AG(lenzburg, Switzerland)

MCC PTA India Corp.Private Limited（Kolkata, India）

Mitsubishi ChemicalHoldings (Beijing) Co.,Ltd.

（Beijing, China)

Huizhou MMA Co., Ltd.(Huizhou, China)

Mitsubishi Pharma（Guangzhou)Co., Ltd.（Guangzhou,China）

Mitsubishi Chemical HoldingsCorporation, Head Office（Tokyo）

Mitsubishi Chemical’s Presence in India

Mitsubishi’s total investment in India is close to $1billion.

MCC PTA India Corp. Pvt. Ltd.

Haldia, West Bengal

Mitsubishi Chemical India Pvt. Ltd.

Gurgaon, Haryana

(Representative)

MAPIC India Pvt. Ltd.

Hyderabad, Andhra Pradesh

(Pharmaceutical Ingredient)

Mytex Polymers India Pvt. Ltd.

Neemrana, Rajasthan

(PP Compound)

Mitsubishi has focused on India !!

Overview of Indian Economy

314 330 363 374 469 604 703 774 821 865 949 1,042 1,135

1,274 1,490

1,731

2,069

2,651

3,414

3,749

4,433

5,447

6,091 6,456

6,844

7,254

7,690

8,151

8,640

9,159

9,708

376 310 324 309 355 384 411 427 425 455 457 466 487 565 650 740 830 1,042

1,419 1,4891,642

1,810 1,996

2,200

-

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

10,000

GD

P P

er

Ca

pit

a (

US

D/P

ers

on

)

China

India

GDP Per Capita Growth Rate

YR. 2020

YR. 2012

2020 India GDP/Capita (2,200USD)

= 2007 China level

Mass-Consumption

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

Th

ou

sa

nd

Ca

r

Domestic Production

Share in the World (W.S.)

Automobile Market in India

2008

W.S. 3.1%

Over 6 million Cars

in 20202020

W.S. 6.1%

One of Major Auto Market in the World in 2020

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

0 2,000 4,000 6,000 8,000 10,000 12,000 14,000

Utilization Rate of Baby Diapers (2008)

Brazil

Indonesia

India GDP(USD） per Capita

Uti

liza

tio

n R

ate

（％）

China

RussiaUSD 1,000-4,000

Rapid Growth

Now Start Point of Rapid Growth

Potential Demand of Baby Diapers in India

120Population under the age of 5 years (millions)

China

India

119

93

100

75

25

0

50

0 20 60 8040 100

Japan USA

Russia

Brazil

Turkey

IndonesiaEgypt

World No. 1 Potential Market

Uti

lizati

on

R

ate

(%

)

What Mitsubishi can do for India

Mitsubishi’s Technologies for Propylene Derivatives

3. OXO Alcohols (OXO)Suitable for many applications such as acrylates.

2. Acrylic Acid and its Esters (AA/AE)Acrylate dispersion technologies are also available.

1. Poly-Propylene (PP)

Most suitable technology for automobile application

(licensed through Japan Polypropylene Corporation).

FUNCSTER Long Glass Fiber Reinforced PP

NEWCON Reactor TPO

Front End Module Door Module Side Step Functional Parts

Polypropylene for AUTO

NEWCON is the best resin Compounding materials for

Auto

High Transparency Cleanliness

Heat Resistance

Metallocene Polypropylene

WINTEC

WELNEXMetallocene Based R-TPO

Metallocene Based Random

Copolymer

Flexibility

Process Technology “HORIZON”

High Performance &Balanced ICP

High Rubber-Content R-TPO Production

New Grade Development

Horizontal Reactor

High Performance Catalyst

Easy Product Grade Change

High Adaptability to New Grade

1st REACTOR

2nd REACTOR

Degassing

Column Pelletizer

Evaporative Cooling System

Application of Acrylic Acid, its Esters, and OXO Alcohols

Diaper

Super

Absorbent

Polymer

（SAP）

FiberAcrylic Fiber

(co-polymer

for AN )

Acrylic Glass

Acrylic Glass

(co-polymer

for MMA)

Paint

Acrylate, Emulsion

OXO alcohols are

used as the

plasticizer for

Vinyl Chloride and

for producing

acrylic acrylates

with acrylic acid.

Adhesives

Acrylic Acid and Esters / OXO Alcohols Flow

Esters (Acrylates)

Glacial

Acrylic Acid

Mitsubishi’s Technology Area

OXO Alcohols

Acrylic Acid

Emulsion

(Dispersion)Propylene

Hygiene

(SAP: Super

Absorbent

Polymer)

• Adhesives

• Water Treatment

• Plastic Additives

Plasticizers

Poly-Propylene Balance in India

Balanced in India. But…..

Mitsubishi’s PP technology is most suitable for this application.

High performance co-polymer for automobile

application is still shortage.

Import

Forecast for OXO Alcohol and AA Market in India

Butyl Alcohol

Demand

Production

Capacity

Balance

Demand

Production

Capacity

Balance

Acrylic Acid

Someone has to produce !!

Gap

100 KTA

Gap

200 KTA

Huge S/D Gap !! (2015)

Indispensability of Domestic Production

What Indian Producers should do

India Rupee has been depreciated..

INR vs. USD (last 5 years)

It’s been challenging for Indian Producers

who Imports raw materials and sells products in India.

If raw materials are available in India or procured by INR, demands for

raw materials would be greatly increased.

Produce inside India !!

Propylene Suppliers in India

Reliance 2,728

Indian Oil Corporation Ltd. (IOCL) 565

HPCL-Mittal Energy Limited (HMEL) 550

Haldia Petrochem 345

Bharat Petroleum (BPCL) 230

Mangalore Refinery & Petrochem 87

Gail 70

Hindustan Petroleum (HPCL) 54

Others 35

Total 4,664

Refineries are Major Suppliers

Propylene Balance in India

2012 2013

Production capacity 4,482 4,664

Production 3,495 3,937

Operating rate 0.78 0.84

Import 0 0

Export 11 11

Domestic demand 3,484 3,926

Balance 11 11

Gap

between

capacity

and actual

production.

Refineries shall produce propylene derivatives as well.

Refineries seems to reserve spare propylene capacity.

Mitsubishi’s Technologies for Propylene Derivatives

3. OXO Alcohols (OXO)Suitable for many applications such as acrylates.

2. Acrylic Acid and its Esters (AA/AE)Acrylate dispersion technologies are also available.

1. Poly-Propylene (PP)

Most suitable technology for automobile application

(licensed through Japan Polypropylene Corporation).

Mitsubishi Chemical can Offer Solutions !!

Other Valuable Mitsubishi Technologies for

India’s Economic Growth

C3 Derivatives

Products Feedstock Capacity Plants Remarks

Polypropylene

HorizonPropylene 200-300 8

Licenser: Japan

Polypropylene Co.

Acrylic acid

and its EstersPropylene 80-160 14

Oxo-alcohols Propylene 15-250 9New Rh-phosphite

ligand system also

license available

Propylene

DTP process

Methanol

(+ C4-6 Olefin)50-100 Not yet

New Technology

Licenser: JGC

Capacity KTA

C4 Derivatives

Products Feedstock Capacity Plants Remarks

1,4-Butanediol

(BDO)Butadiene 100 4

BDO & THF

Co-Production

Butadiene

BTcB ProcessN-Butene 50-100 Not yet

New Technology

On-purpose technology

Poly-Tetra

Methylene Glycol

(PTMG)

THF + 1,4-BDO25-50 3

Maleic acid

(CML)N-Butane 30-60 2

CML Derivatives

Buthylactone(GBL)

N-Methy-2-

Pyroridone (NMP)

CML 5-20 1

Tetrahydrofuran

(THF)1,4-BDO 100 (1) Under Construction

Phenol Chain

Products Feedstock Capacity Plants Remarks

Bis-phenol A

(BPA)

Phenol +

Acetone120-240 9

Methyl Isobutyl

ketone（MIBK)Acetone 20 1 3 Step Process

Di-Phenyl

Carbonate(DPC)

Phenol +

Phosgene20-100 2

C2 and Polyester Chain

Products Feedstock Capacity Plants Remarks

1-Hexene Ethylene 50 Not yetNew technology

On-Purpose

Trimerization

Ethylene Glycol

OMEGA® ProcessEthylene 750-1500 5

MEG On-purpose

Licenser: Shell

Terephthalic acid

(PTA)Para-xylene 1200 12

Poly-Butylene

Terephtalate

(PBT)

1,4-BDO + PTA 20 2Licenser: HITACHI

Ti catalyst

5

Oxo-alcohols

1

2

6

7

83 4

9

3 4

C4

1

25

PTA

1

2

3

Mitsubishi Chemical Licensing Record

EOG (Shell)

1

2

34

5

6

6

125

138

24

1011

Acrylic Acid & Esters

7 913

14

15

PP (JPP)

18

3 2

4 5

6

7

BPA*

7

98 1

2

34

5

6

*Including license record by Chiyoda (1991-2002)

Contact Details

Of

Mitsubishi Chemical Corporation

Contact Details of Mitsubishi Chemical

Primary Contact Window

• Name: Mr. Satoshi MIYAMOTO

• Title: Senior Manager

• Address: 1-1-1, Marunouchi, Chiyoda-City,

Tokyo, Japan, Post Code 100-8251

• TEL: +81-3-6748-7262 or +81-50-3139-2093 (Direct)

• FAX: +81-3-3286-1195

• Email: 4000705@cc.m-kagaku.co.jpｚ

Secondary Contact Window

• Name: Ms. Baishakhi De

• Address: Ditto

• TEL: +81-3-6748-7262 or +81-50-3805-7361 (Direct)

• FAX: Ditto.

• Email: 0017486@cc.m-kagaku.co.jp

Thank you very much

for

your kind Attention !!