Investor Presentation
Enhancing planetary health
JGC HOLDINGS CORPORATION

Disclaimer-Note on Future Outlook

This presentation may contain forward-looking statements about JGC Holdings Corporation. You can identify thesestatements by the fact that they do not relate strictly to historic or current facts. These statements discuss future expectations,
identify strategies, contain projections of results of operations or financial conditions, or state other "forward-looking"information.
These statements are based on currently available information and represent the beliefs of the management of JGC
Holdings Corporation. These statements are subject to numerous risks and uncertainties that could cause JGC Holdings' actual
results, performance, achievements, or financial condition to differ materially from those described or implied in the forwardlooking statements.
JGC Holdings Corporation assumes no obligation to publicly update any forward-looking statements after the date of thispresentation. These potential risks and uncertainties include, but are not limited to: competition within the financial services
industries in Japan and overseas, our ability to adjust our business focus and to maintain profitable strategic alliances, volatileand sudden movements in the international securities markets, and foreign exchange and global economic situations affecting
JGC Holdings Corporation.

For questions concerning this material, please contact:
Group Strategic Planning &Management Development Department
Corporate Communication GroupJGC Holdings Corporation
Tel: 81-45-682-8026 Fax: 81-45-682-1112
Email: ir@jgc.com© 2021 JGC GROUP

Enhancing planetary health2Company Profile & History
Enhancing planetary healthCompany ProfileName

JGC HOLDINGS CORPORATION

Established

October 25, 1928

Head Office2-3-1, Minato Mirai, Nishi-ku, Yokohama-shi, Kanagawa, 220-6001, Japan

Employees(Consolidated)

7,275 (As of March 31, 2022)

Stock exchange

Prime market, Tokyo Stock Exchange (TSE Code:1963)【Total Engineering】
Services offered[Business
Segments]

EPC (Engineering, Procurement and Construction) and maintenance business for various
plants and facilities【Functional Materials Manufacturing】
Manufacturing and sales of various catalysts, fine chemicals and fine ceramics© 2021 JGC GROUP

Enhancing planetary health4History
1928
Establishment of Japan Gasoline Co., Ltd.,The predecessor of JGC Holdings Corp.

1980s

Building a Global Network for
Project Execution,
Diversifying Operations

1930s-50s

Engineering Business Growth into
Full-Scale Operations
Start of Catalyst Manufacturing Business

1990s

Overcoming Crisis,
Responding to Era of Gas Demand

1960s

1970s

Concerted International Expansion

Establishing its Position as
A World-class Engineering Enterprise

2000s

Business Expansion Driven by
Accelerated Worldwide Resource
Development

2010s

Expansion of Business Areas,
Adoption of a Holding Company
Structure

2020s

Provide up-to-date Solutions
for Energy Transition
toward Zero Carbon Future© 2021 JGC GROUP

ExpandingHigh-performance
Functional Material Business

Incubating Future Solutions
for Circular Economy
By Co-creation across Supply Chain
Enhancing planetary health5Group Management Structure
Total Engineering (EPC Business)
JGC CORPORATION (Overseas Business)
Energy Solutions
Sustainable Solutions
Facility Infrastructure Solutions
JGC JAPAN CORPORATION (Domestic Business)

JGC HOLDINGSCORPORATION

Functional Materials
Manufacturing
Total Engineering

9%

Functional Materials Manufacturing
JGC Catalysts and Chemicals Ltd.
Japan Fine Ceramics Co., Ltd.

91%
Revenue Forecast in FY2022

JAPAN NUS Co., Ltd.
Other Domestic and Overseas Group Companies© 2021 JGC GROUP

Enhancing planetary health6Our Strategy
Enhancing planetary healthOverall Strategy
Three key strategies pursued over five years of challenge

Transformation of
EPC operations● Increase competitiveness and profitability in mega-sized EPC projects● Take on EPC growth markets and segments

Expansion of
manufacturing business forhigh-performance
functional materials● Offer more product line-ups in existing business for increased revenue● Expand sales of strategic products● Explore and develop next-generation business

Establishment of
future enginesof growth© 2021 JGC GROUP● Nuclear SMR● "Blue" hydrogen / fuel ammonia● Circular Economy

Enhancing planetary health8

Strategy - Transformation of EPC operationJGC Group’s EPC BusinessCurrent
Business-

Lumpsum Turnkey
Focused on volatile Oil & Gas segment
Centralized Operation from Global HQBusiness
Transition

Competitiveness &Profitability

GrowthSegment© 2021 JGC GROUP

•
•
•
•
•

LNG Liquefaction Facilities
Energy Transition
Pharmaceuticals/Hospital
Chemicals
Circular Economy

•
•
•

-

Improve Competitiveness & Profitability
Focus business to Differentiated growth segments
Regional HQ to focus on growth markets

Risk Management
Project Execution
Digital Technologies

GrowthMarket••Enhancing planetary healthAsian Region
Regional HQ's

9

Strategy - Expansion of manufacturing businessfor high-performance functional materials
JGC Group’s Manufacturing BusinessCurrent
Business-

Niche Strategy (Market focused)
Unique Product, Small Market Segment
Low Risk, High Operating Margin

Business
Transition-

Domestic Niche to Global Niche
Unique product aiming at potential large markets
Product Portfolio Transition

Fine Ceramics

Engineering
Ceramics

Fine Ceramics

Fine Ceramics

Si3N4 Substrate forPower
Semiconductor

Fine Chemical

Hard Disk
Polishing
Agent

Fine Chemical

Fine Chemical

CMP
SlurryChemical
Catalyst

Chemical/
Coal Power

Chemical
Catalyst

Chemical
Catalyst

RefineryCatalyst

FCC
Catalyst

RefineryCatalyst

RefineryCatalyst

2025

2040

Current© 2021 JGC GROUP

Green Chemical/
Waste to Energy

Enhancing planetary health10Strategy - Establishment of future engines of growth
Key Technologies
Production

Natural Gas
Oil
Coal

SMR

Small Module
Reactor© 2021 JGC GROUP

Solar PowerWind Power
Nuclear Power

CO2

Transportation

Liquification

HydrogenHydrogen(Blue)+N2
Hydrogen(Green)Ammonia

Enhancing planetary health11Strategy - Establishment of future engines of growth
JGC Group’s Clean Energy BusinessCurrent

Hydrogen-

Focus on Hydrogen, Ammonia and SMR
MCH* as a potential hydrogen career
Alliance with Toyo and KBR for Ammonia
Invested in NuScale for SMR

MCH*

Ammonia

KBR+

Mega-scale
Project Experience
In potential market(Middle East, Australia)

SMR

Small Module
Reactor© 2021 JGC GROUP

2022

2023

BusinessFS

1st Pre-FEED/ FEEDBusiness

FS

PreFEEDA Project

FS

Pre-FEEDB ProjectFS

Milestones

Top Licensorof Ammonia
Technology

Mid-scale
Project Experience
For Ammonia
Plant

Business
Transition

Milestones

C Project

Business

Milestones

-

2024

JGC received inquiries of various FS and Pre-FEED
projects worldwide
1st FID of EPC project is expected in FY2024

2025

2030

2040

1st
EPC

Operation &Further EPC Projects

1st
FEED

1st
EPC

Operation &Further EPC Projects

1st FEED

1st EPC

CCS Pilot

FEED

Pre-FEED

Finance & Application

1st EPC

Operation &Further EPC Projects* MCH: Methyl Cyclohexane

Enhancing planetary health12Worldwide opportunity - Toward Zero Carbon Future
Estonia
SMR
PolandSMR

KSA(NEOM)
H2, NH3

KSA
NH3

UAE
H2, NH3

OMAN
H2, MCH

OMAN
H2

China
H2

Romania
SMR

RussiaH2, NH3

RussiaH2, NH3

CanadaNH3

CanadaH2, NH3・Receiving TerminalJapan
H2/NH3 ・Power Plants

USA
H2、NH3

MoroccoH2, NH3
Egypt
H2, NH3

Malaysia
H2, MCH
Indonesia
NH3

USA
SMR

Malaysia
H2, MCH

Indonesia
SMR

West Australia
H2, NH3

West Australia
H2, NH3

Blue Hydrogen and Ammonia production© 2021 JGC GROUP

USA
H2、NH3

South Australia
H2, NH3

Mexico
H2、NH3

East Australia
H2, NH3

Green Hydrogen and Ammonia production

New Zealand
H2, NH3

Chile
NH3

SMR (Small Module Reactor)
Enhancing planetary health13

Strategic Investment (2021-2025)

DigitalTransformation

Businessdevelopment

Transformation of EPC operations

70 billion JPY(0.54 billion USD)

● EPC DX
● Acquire business capabilities in
Asian region● Pharmaceutical engineering
technologies, etc.

M&As

Commercial
demonstrations

Expansion of
manufacturing businessfor high-performance
functional materials

50 billion JPY(0.38 billion USD)

● Investment to develop new producttechnologies (such as forlife science materials)● Facility investment related to highthermal conductivity silicon nitride
substrates, etc.

Production
facilities

R&D

Establishment of
future engines of growth

80 billion JPY(0.62 billion USD)

● Carbon management● Offshore wind power● Hydrogen / fuel ammonia● Chemical recycling, etc.

Over five years, make strategic investments
totaling 200 billion JPY (1.53 billion USD)
(Note) Financial information included in this material was extracted from financial statements prepared in accordance with Japanese accounting standards and is not based on U.S. accounting standards.
*The USD amounts are translated from Japanese JPY amounts solely for reference purpose, using the exchange rate for investment target was ¥130.00 to U.S.$1.
© 2021 JGC GROUP

Enhancing planetary health

14

JGC Group’s 2040 vision - Business Domain Portfolio
Sales contribution by business areas and models
Taking on social issues through a variety of business models in more diverse business areas

Business areas

Business models

Others2%

Industrial & Urban
infrastructureHigh-performance
functional materials

10%

9%

Circular Economy

10%

Healthcare /Life sciences

High-performance
functional materials

8%

Oil & Gas
Renewable energy

81%

2020

© 2021 JGC GROUP

10% Healthcare /Life sciences

10%
2040

Non-EPC

Energytransition

22%

60%

EPC

Non-EPC

60%

40%

EPC

78%

2020

2040

Enhancing planetary health15Positive Market Condition
Enhancing planetary healthAchievements in LNG Projects
Over

30% of•

LNG Canada•

Yamal LNG, 2019

World LNG Production* Including Ongoing Projects• Malaysia LNG,
2018 / 2017 / 2004 / 2004 /1996 / 1983
• PFLNG2, 2021
• Brunei LNG, 1974 / 1973
• Donggi Senoro LNG, 2015••

SEGAS LNG, 2004

Tangguh LNG, 2009•

PNG LNG, 2014

• Nigeria LNG, 2007 / 2005 / 2003 / 1999••

Coral FLNG••

© 2021 JGC GROUP• Woodside LNG,
2004 / 1993 / 1989

Ras Laffan LNG, 2000

Yemen LNG, 2009

Ichthys LNG , 2018•

Arun LNG, 1986

• Gorgon LNG, 2018
Enhancing planetary health

17Planned LNG Projects

Canada‐ LNG Canada Phase2

UAE‐ Fujairah LNG

U.S.
‐ Freeport LNG Exp.
‐ Cameron LNG Exp.
and otherIndonesia

Nigeria‐ Masela LNG‐ UTM Offshore‐ FLNG

Malaysia‐ ZLNG (FLNG)

Papua New Guinea‐ PNG LNG Exp.

Mozambique＊Red indicates projects in which JGC provided FEED
and/or EPC services for existing facilities© 2021 JGC GROUP‐ Rovuma LNG‐ FLNG

Enhancing planetary health18

Progress in Major Projects︓LNG Canada
Joint venture scope is over 60 percent complete.
Out of 215 modules, 93 modules are onsite.

© 2021 JGC GROUP

Enhancing planetary health19

Progress in Major Projects︓Basrah Refinery Upgrading
Engineering works over 60% completed.
Construction works progressing well.

© 2021 JGC GROUP

Enhancing planetary health20

Progress in Major Projects : Domestic Projects

Multiple biomass power generation
plants (order size: over 500 million
USD)

Multiple Pharmaceutical mfg. plants(order size: 200 million USD)

Multiple mega solar power generation
plants (order size: 100 million USD)

Ongoing multiple construction projects, which is large-scale biomass power
generation, large-scale pharmaceutical manufacturing plants and mega
solar power plants.
© 2021 JGC GROUP

Enhancing planetary health21

Total Engineering Orders Target for FY2022 (Apr/22 – Mar/23)
Value of FY2022 Consolidated Orders Target︓

840 Billion JPY
6.46 Billion USD)(JGC Corporation

670 Billion JPY(5.15 Billion USD)

Orders target
for fiscal 2022
Expected Projects• Middle East
• North America• Middle East
• North America• Southeast Asia
• Southeast Asia

© 2021 JGC GROUP

Facility Infrastructure
Solutions

Energy Solutions

GOSP
Gas chemicals
Gas chemicals
LNG
LNG
Chemicals, etc.

• Asia• Europe• Asia• AsiaSolar power and power
storage system
Battery parts mfg. plantIndustrial park tenant
factories
Biodegradable plastics
production
demonstration, etc.

※1USD=130 JPY

JGC Japan

170 Billion JPY(1.31 Billion USD)
• Pharmaceutical mfg. plants• Hospitals• Blue hydrogen production
demonstration• SAF production demonstration• Nuclear related• Maintenance services , etc.

Enhancing planetary health22

Our Opportunity – Pipeline

Opportunities

FY2022
Proposals

FY2022
Consolidated Orders Target© 2021 JGC GROUP

4,000 Billion JPY＞

30.8 Billion USD)(

2,000 Billion JPY＞

15.4 Billion USD)(

840 Billion JPY
6.46 Billion USD)(

※1USD=130 JPY

Enhancing planetary health23

Total Engineering Orders Received in Q1 of FY2022
Orders Received︓

360.6 Billion JPY（2.64 Billion USD ）JGC Corporation

Received Projects

Energy Solutions• Saudi Arabia• North America© 2021 JGC GROUPJGC Japan

330.0 Billion JPY(2.41 Billion USD)

Orders Received

Gas Oil Separation Unit
FEED Works of LNG,
etc.

※1USD=136.68 JPY(As of end of Jun.)

30.6 Billion JPY(0.22 Billion USD)

Facility Infrastructure
Solutions• Malaysia

Medical products mfg. plant,etc.

• Pharmaceutical mfg. plants• Hospitals• Maintenance services, etc.

Enhancing planetary healthFinancial
Enhancing planetary healthFinancial performance and FY2025 target
Revenue (Net sales)

EBIT (Operating income)(USD Million*)

Net profit(USD Million*)(USD Million*)

6,154
462
346

4,769

3,500
223

180

185

169

FY2021 FY2022
Actual Forecast

FY2025
TargetFY2021 FY2022
Actual Forecast

FY2025
TargetFY2021 FY2022
Actual** Forecast

FY2025
Target(Note) Financial information included in this material was extracted from financial statements prepared in accordance with Japanese accounting standards and is not based on U.S. accounting standards.
*The USD amounts are translated from Japanese JPY amounts solely for reference purpose, using the exchange rates for FY2021 Actual, FY2022 Forecast and FY2025 Target were ¥122.39, ¥130.00 and ¥130.00 to U.S.$1.
** The figure adjusted by excluding one-off extraordinary loss associated with settlement of dispute on Ichthys LNG project.
© 2021 JGC GROUP

Enhancing planetary health26

Performance trend(USD Million*)
20,000

New award

15,000

Backlog

10,0005,000
0FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020(USD Million*)
8,000

FY2021

FY2022F

Revenue
Gross margin %

6,000

20
15

4,000

10

2,000

5

0

0
FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022F(Note) Financial information included in this material was extracted from financial statements prepared in accordance with Japanese accounting standards and is not based on U.S. accounting standards.
*The USD amounts are translated from Japanese JPY amounts solely for reference purpose, using historical market exchange rates for FY2012 to FY2021 and ¥130.00 and ¥130.00 to U.S.$1 for FY2022F.
© 2021 JGC GROUP

Enhancing planetary health27

Financial Performance by Business segments
Total Engineering (Project EPC)
Revenue(USD Million*)

EBIT

Functional Materials Manufacturing(USD Million*)
220

4,354

Revenue
362(USD Million*)
354

EBIT

(USD Million*)
60

46

3,088

108

FY2021

FY2022F

FY2021

FY2022F

FY2021

FY2022F

FY2021

FY2022F(Note) Financial information included in this material was extracted from financial statements prepared in accordance with Japanese accounting standards and is not based on U.S. accounting standards.
*The USD amounts are translated from Japanese JPY amounts solely for reference purpose, using the exchange rates for FY2021 Actual, FY2022 Forecast and FY2025 Target were ¥122.39, ¥130.00 and ¥130.00 to U.S.$1.
© 2021 JGC GROUP

Enhancing planetary health28

Solid balance sheet and liquidity
Financial management objectives•

Solid balance sheet for mega-sized
project delivery

56% Equity to assets(USD Million*)

Liabilities

Equity•Sufficient liquidity for efficient
operation and growth opportunity

Operating cash flow generation

Equity113

158

Liabilities

Sufficient liquidity**

FY2020 FY2021(USD Million*)•

Sustainable shareholder return(Note) Financial information included in this material was extracted from financial statements prepared in accordance with Japanese accounting standards and is not based on U.S. accounting standards.
*The USD amounts are translated from Japanese JPY amounts solely for reference purpose, using the exchange rates for FY2021 Actual, FY2022 Forecast and FY2025 Target were ¥122.39, ¥130.00 and ¥130.00 to U.S.$1.
**At end of March, 2022.
© 2021 JGC GROUP

Enhancing planetary health29

Shareholder return policy
Annual cash dividends : Pay-out ratio 30% of net income with minimum floor JPY15 per share
Share buyback : to consider based on financial position and business outlook
Annual cash dividends per share

(JPY)

29

© 2021 JGC GROUP

1212FY2019FY2020minimum floor
introduced from FY2021

15

FY2021

FY2022F
Enhancing planetary health30

JGC’s Risk Management
Enhancing planetary health

JGC’s Risk Management

Partnering••••

New business market
Improved CompetitivenessRobust project execution
Sharing executional risk/resources

Project Selection••

Risk Assessment
Target prioritization

JGC’s
Risk Management

Historical Benchmarking

Commercial••

Cost and Schedule Risk Analysis (Proposal Stage)
Mitigations for identified risk

•
•
•
•

Project Execution••••© 2021 JGC GROUP(Estimation)
More than 20,000 past projects
Various plant type and region
Accurate cost and schedule estimation
Productivity and performance of
subcontractors/suppliers

Digital Transformation
Ongoing Risk Management (periodical risk review)
Ongoing Schedule Risk Analysis for forecast outcome
Effective Change Management Process
Enhancing planetary health32Enhancing planetary health© 2021 JGC GROUP

Enhancing planetary health33