Lion : to Establish a Joint Venture Company

June 30, 2017

Company name: Lion Corporation

Representative: Itsuo Hama, Representative Director,

President Executive Officer Security code: 4912; the First Section of the Tokyo

Stock Exchange

Lion Corporation herein announces the decision reached at today's Board of Directors meeting to form a contract to establish a joint venture company in order to advance plant-based surfactant (methyl ester sulfonate, hereinafter "MES") business with the Wilmar International Limited Group (hereinafter "the Wilmar Group"), a major Singapore-headquartered agribusiness group.

1. Purpose of the Joint Venture

   Lion currently manufactures and sells MES, an ingredient used to make detergents, through its wholly owned subsidiary Lion Eco Chemicals Sdn. Bhd. (hereinafter "LECO"). The Wilmar Group operates integrated businesses spanning oil palm cultivation to the manufacture and sale of edible oils and such chemicals as MES for consumer products. By forming a joint venture with the Wilmar Group, Lion aims to enhance the competitiveness of its MES business and achieve further growth.

2. Outline of the Joint Venture

   The joint venture company will be established in Singapore and funded 50% by Lion and 50% by the Wilmar Group. LECO and a new company (which will produce MES using manufacturing facilities transferred from the Wilmar Group) to be incorporated in Indonesia will be placed under the joint venture company and conduct MES-related businesses.

   The businesses, representative and other details of the joint venture company will be determined jointly with the Wilmar Group. Lion will announce these details when they are decided.

3. Overview of Wilmar International Limited

   (1) Name	Wilmar International Limited
   (2) Location	56 Neil Road, Singapore 088830
   (3) Representative	Chairman and Chief Executive Officer: Kuok Khoon Hong
   (4) Businesses	Oil palm cultivation; oilseed crushing; edible oil refining; sugar milling

   and refining; specialty fat, oleochemicals, biodiesel and fertiliser manufacturing; and grain processing
   (5) Capital	8,895,134,000 USD (as at 31 December 2016)
   (6) Established	1991
   (7) Relationships with Lion	Capital relationships	None
   	Personal relationships	None
   	Business relationships	Sells methyl ester for use as raw materials to the Lion Group

   *The joint venture contract will be made with KOG Investments PTE LTD, a fully owned subsidiary of Wilmar International Limited.

4. Overview of LECO

   (1) Name	Lion Eco Chemicals Sdn. Bhd.
   (2) Location	Johor, Malaysia
   (3) Representative	President Osamu Yoshitake
   (4) Businesses	Manufacture and sale of surfactants and chemicals
   (5) Capital	287 million Malaysian ringgit
   (6) Established	2007
   (7) Relationships with Lion	100% owned by Lion Corporation

5. Forecasts

Following the signing of the joint venture contract today, Lion and the Wilmar Group will apply to the competition authorities of multiple countries for permission to establish the joint venture. The joint venture will quickly be established once all the relevant approvals have been obtained. The date on which the joint venture will be established has yet to be determined. As such, the impact of its establishment on Lion's business performance cannot yet be estimated.