JGC Group
Long-term management vision

2040 Vision

May 12, 2021

JGC Holdings Corporation

Executive Summary

Enhancing planetary healthPurposeBackground of 2040 Vision

Responding to a rapidly changing business environment

A corporate group that contributes
to enhancing planetary health infive business areas

2040 Vision

Energy transition

Three aspects of transformation supporting the 2040 vision

Business areas

Focused on Oil & Gas

Responding to the energy transition,
expanding our business areas

Businessmodels
modelsBusiness

Focused on EPC andmanufacturing models

Transformation of EPC business model,
diversifying to non-EPC models

Organization

Managed mainly from Japan;
organization designed forexecution of Mega-sized EPC
projects

Strengthening our regional
management framework andfostering a culture of innovation

Healthcare / Life sciences
High-performance
functional materials
Circular economy
Industrial & Urban infrastructure

TargetAchieving long-term growth with a grasp of social changes

FY2040 operating income*¥150–200 billion* Adjusted Operating Income: Operating income plus interest income, dividend income and shareof profit of entities accounted for using equity method earned in each business area2Contents

Purpose of the JGC Group

P.4

Social issues that JGC Group will focus on

P.7

2040 vision of the JGC Group

P.12

Overview of transformation supporting the 2040 Vision

P.15

Business area transformation

P.19

Business model transformation

P.26

Organizational transformation

P.30

Commitment to carbon neutrality by 2050

P.33Group message

P.34

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Purpose of the JGC Group4

Purpose of the JGC Group

Historical roles since the company was founded
Supporting the foundations of industry and society at large,at the crossroads of challenges inbalancing energy and environmental needs

I want the company to be a presence that
supports the foundation of industry as well associety regardless of era
Founder Masao Saneyoshi

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Purpose of the JGC Group

2040 vision – what we aspire to be

Purpose of the JGC Group

Enhancing planetary health
We remain committed to our traditional mission of creating a more prosperous future, which has been
redefined to reflect our purpose of enhancing the intertwined health of humans and the Earth.

6Social issues that JGC Group will focus on

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Social issues that JGC Group will focus on

Pursuing both a stable energy supply and decarbonization

Global primary energy demand by 2040:
17.1 billion toe*

A critical stage in climate change measures

Renewable power by 2040:
3.3 billion toe*

Greater energy demand is expected, driven by aLimiting the increase in average temperature

A growing awareness of climate change issues isswelling global population and economic growth.

relative to pre-industrial levels to 1.5°C willbehind the global trend toward less carbon andrequire reducing CO2 emissions effectively to zeroeven net-zero carbon.

by 2050.
*toe: ton of oil equivalent
Source: IEA World Energy Outlook 20208

Social issues that JGC Group will focus on

Reducing the environmental impact of resource consumption

Higher CO2 emissions from manufacturing
processes

Greater consumption associated with global
economic growth will exacerbate the impact of
CO2 emissions throughout manufacturing

Global waste by 2050:
3.4 billion tons/year

Adverse effects from pollution on
ecosystems and human health

Rising consumption also continues to generate

Non-biodegradable plastics in particular raise

more waste.

concerns for ecosystems and human health.
Resources with a lighter environmental footprint

processes.

that limit the generation of new waste must be

Source: World Bank, A Global Snapshot of Solid Waste Management to 2050

used.

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Social issues that JGC Group will focus on

Building and maintaining vital infrastructure and services

Urbanization in Asia, Africa:
66% of the population

Greater medical capacity,
especially in emerging economies

Percentage of the population
65 or older: 35% (Japan)

Asia, Africa, and other emerging regions will see

Development of medical infrastructure and better

Needs for personalized and preventive medicine

healthcare will be in higher demand, especially inwill increase in Japan and other developed

emerging markets with growing economies.

economies as birthrates decline and populations

an accelerated urban influx as their economies
grow, which will drive demand for industrial andindustrial and urban infrastructure.

Source: United Nations, World Urbanization Prospects
National Institute of Population and Social Security Research "Japan's Future Population Estimate"

age.

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Social issues that JGC Group will focus on

Health of the Earth

Health of humans

Pursuing both a stable energy supply
and decarbonization

Reducing environmental impact ofresource consumption

Building and maintaining
vital infrastructure and services

Meeting higher demand of energy

Reducing CO2 throughout manufacturing
processes

Establishing and maintaining industrial and urban
infrastructure

Reducing the environmental impact of waste

Establishing and improving medical infrastructure

Popularizing environmentally protective highperformance functional materials

Promoting widespread use of personalized andpreventive medical care

Responding to the low-carbon / zero-carbon
transition
Achieving net-zero CO2 emissions

112040 vision of the JGC Group12

2040 Vision of the JGC GroupA corporate group that contributes toenhancing planetary health in five (5) business areas

Establishing a stable energy supply and decarbonization
Through materials, helping to shapea more prosperous future for people and the Earth

Highperformance
functional

Through medical care and healthcare,
contributing to human wellbeing

Making widespread useof environmentallyconscious resources arealitymaterials

Energy transition

Establishing
Environmentally conscious
industrial & urban
infrastructureLife sciences

Industrial

Circular

Healthcare /& Urbaneconomyinfrastructure

132040 vision of the JGC Group

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

10% Healthcare /Life sciences

10%

2040

Non-EPC

Energytransition

22%

60%

EPC

60%

Non-EPC

40%

EPC

78%
2020

2040

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Overview of transformation supporting the 2040 Vision

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Overview of transformation supporting the 2040 Vision

Three aspects of transformation supporting the 2040 vision

Business Areas

Business Models

Organization

Focused on Oil & Gas

Focused on EPC andmanufacturing models

Managed mainly from Japan;
organization designed for executionof mega-sized EPC projects

Responding to the energy
transition, expanding ourbusiness areas

Transformation of EPC businessmodel, diversifying to non-EPC
modelsStrengthening our regional
management framework,
fostering a culture of innovation

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Overview of transformation supporting the 2040 Vision

Path to business area expansion
The Group will be expanding into five areas that include core business, growth business and future business
which will be developed into pillars of business

Present● Advancing into renewable energy
infrastructure● Further developing our functional materials
manufacturing capabilities● Sowing the seeds for businesses promoting
sustainability

Five years of challenge

Five years of harvest(2021–2025)(2026–2030)● Expanding in the energy transition
segment● Actively investing in growth businesses● Laying the groundwork for future business● Harvesting the fruit of efforts for growthbusiness (High-performance functional
materials, Healthcare / Life science)● Making future business profitable

Low-carbon / decarbonized
Oil & Gas

Ten years of rapid growth(2031–2040)● Developing the future business (Circular
economy, Industrial & Urban infrastructure)
into pillars of business● Establishing diversified portfolio management

Clean energyCorebusiness

Futurebusiness
Growthbusiness

Oil & Gas

RenewableenergyEnergytransition

High-performance
functional materials

Healthcare /Life sciences

Circular economy

Industrial & Urban
infrastructure

Timeline

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Overview of transformation supporting the 2040 Vision

Target level of operating income*
These three facets of transformation will support us in reaching¥150–200 billion of income in 2040.
Strategic investments to be made over the long term.

Present

Five years of challenge(2021–2025)¥60

billionFive years of harvest

Ten years of rapid growth(2026–2030)(2031–2040)¥100

billion or more

¥150–200

billionJGC Group will realize greater income
over the long termby strategic investment* Adjusted Operating Income: Operating income plus interest income, dividend income and shareof profit of entities accounted for using equity method earned in each business area

Timeline18

Business area transformation
From a focus on Oil & Gas
to responding to energy transition and expansion of business areas

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Business area transformation

Core business area: Overview of energy transition
Adopting low-carbon / decarbonization practices in Oil & Gas and expanding clean energy, for a net-zero society

Net-zero emissions

More EnergyLess Carbon

Low carbon / decarbonization in Oil & Gas● Improving energy efficiency of current infrastructure with digital

Oil & Gas

technologies

CO2 capture

CO2
emissions
reduction● Progress in recovery of CO2 from industrial plants

Expansion of clean energy● Expanding use of renewable energy● Progress in deploying grid-stabilizing technologies, such as storage
batteries and EMS● Progress in introducing hydrogen / fuel ammonia as a renewable

Clean energy
2020

Business to engage inenergy carrier

2030

2040

Low-carbon / decarbonized Oil & Gas

2050● Making EV chargers widely available● Establishing market mechanisms for carbon trading

Clean energy

20Business area transformation

Core business area: Energy transition – low-carbon / decarbonized Oil & Gas
Contributing to carbon reduction / decarbonization in the global Oil & Gas industry

External factors•

Constant energy demand as economies
grow in emerging markets•

Needs for reduced carbon anddecarbonization in fossil fuelconsumption

CCS

Energy-saving
technologies

Expertise and proven record inlarge Oil & Gas projects

Businesses
Development

Carbon credits

Track record of CCS facility
design and construction"Blue" hydrogen /Fuel ammonia

Track record inmaintenance business

Segments of interest

JGC Group strengths

Contributing to carbon reduction / decarbonization in Oil & Gas
through carbon management

Helping facilities scale up for blue hydrogen / fuel ammonia
market growth through our technologies

The Group will build on expertise and experience from past CCS facilities at LNG
plants and the Tomakomai CCS demonstration project to contribute to carbon
reduction / decarbonization. The Group will provide solutions from the planningstage and also participate in business that generate carbon credits.

In production of blue hydrogen / fuel ammonia (CO2-free energy derived fromfossil resources), the Group will apply expertise and risk management capabilities
from plant expansion in LNG operations. The Group will also invest in technology
development and promote strategic partnerships.

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Business area transformation

Core business area: Energy transition – clean energy
Supporting decarbonization in Japan and overseas, starting with clean energy technologies

External factors•

Global market growth in offshore wind
power and hydrogen applications•

Carbon neutrality targeted by 2050 in
the government's Green Growth
Strategy

Offshore wind
power

Expertise in designing and installing
offshore structures

Businesses
Development"Green" hydrogen/ fuel ammonia

SMRs: small
modular reactors

Process engineering

Proficiency in renewable energy,
nuclear power

Segments of interest

JGC Group strengths

Entering offshore wind power, startingin Japan and building on expertise inconstruction management

Demonstrating technologies supporting
green hydrogen / fuel ammonia fromrenewable energy

Making advance investments in thepotential of SMRs

Through alliances, the Group will accumulate
expertise, initially in Japan. Besides EPC, the Groupwill fund special purpose companies in offshore wind
power generation.

The Group will promote green hydrogen / fuelammonia pilot programs demonstrating feasibility insociety, which link renewable energy production
areas with areas where there is demand. The Groupwill also participate in new value chains.

Accumulating achievements and technical expertise
outside of Japan, the Group will aim at practicaladoption of SMRs.

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Business area transformation

Growth business area: Healthcare / Life sciences
Developing pharmaceutical / hospital-related business domestically and in emerging economies,
promoting health through medical care

External factors•

Personalized and preventive medicine
needs, mainly in Japan•

Market growth arising from higher
standards of healthcare in emerging
economies

Pharmaceuticalplants (including
regenerative
medical care)

Platform ofdomestic clientsBusinesses
Development

Traditional andsmart hospitals

Expertise in pharmaceuticalplants (including GMPs*)

Expanding domestic and overseas
pharmaceutical plant EPC operations, including
regenerative medicine
The Group will expand operations and strategic partnerships to meet growing
domestic and international pharmaceutical needs, including global vaccine
demand. Production technology will be developed for pharmaceutical plants(including those serving new modalities).

Digital healthcare

Segments of interest

Expertise in hospitalconstruction and management

JGC Group strengths

Expanding business through early adoption ofdigital technologies at hospitals and clinics,
expanding digital healthcare business
The Group will acquire smart medical technologies through open innovation.
Advance investments will be made in digital technologies for hospitals and clinics,
for expansion of smart hospital business. In overseas expansion, the Group willseek system-building and strategic partnerships rooted in local communities.

*GMPs: Good Manufacturing Practices

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Business area transformation

Growth business area: High-performance functional materials
Developing and producing unique high-performance functional materials in growth segments,
applying the Groupʼs core technologies

External factors•••

Growth of semiconductor / ICT
segments
Growing needs in carbon / chemical
recycling and environment / new energy
segments

Silicone nitride
substrate,
Polishing
nanoparticles
forsemiconductor

Growing needs in medical / testing
segments

Businesses
Development

Catalysts forcarbon andchemical recycling

Catalyst development,base of operations

Strengthening frameworks todevelop new products,
accelerating this process
The Group will venture into new as well as related
segments, applying core technologies and accelerate
product development.

Materials used inenergy storageand new energy
applications

Nanoparticle preparationand control technologies

Materials used inlife science
applications

Fine ceramic development
and production

Segments of interest

JGC Group strengths

Improving production
technologies and capacity

Expanding sales and market
share of existing products

Manufacturing technologies for products such as
high thermal conductivity silicon nitride substrates
and polishing nanoparticles for semiconductor will be
improved and capacity expanded.

The Group will reinforce high-performance material
supply chains in growth segments, capture a larger
market share and expand overseas.

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Business area transformation

Future business area: Circular economy, Industrial & Urban infrastructure

Circular economy

Industrial & Urban infrastructure

Showing leadership in market formation and ecosystem

Providing environmentally conscious

building to support a circular economy for sustainable society

industrial & urban infrastructure
integrating multiple systems

External factors

External factors

Chemical recycling•

Challenges such as plastic
waste

•

Trends toward circular
economies(plastic and fiber
waste, etc.)

Process engineering

Networks of clients,
partners

Segments of interest•

Demand for industrial &urban infrastructure as
economies grow inemerging markets•

Needs for resilient, lowimpact infrastructure

Businesses

The Group will acquire chemical recycling technologies, such as forplastic and fiber waste, for widespread adoption in society. The Groupwill provide licensing as well as operational consulting applying
operational expertise from commercial demonstrations.

Railways

Project management

JGC Group strengths

Creating recycling value chainsthrough partnerships
Development

Industrial
Facilities

Water
Treatment

Integrated
Integrated
Urban
urban

Infrastructure
infrastructure

Overseasbusinesses
experience

Becoming a major player in the Industrial & Urban
infrastructure market, venturing into integrated
infrastructure development
Businesses
Development

The Group will construct industrial facilities, expanding its track record, while
accumulating an array of technologies and a solid record in the Industrial &Urban infrastructure segment, such as for railways and water treatment.
Services to be provided range from conceptual design to construction andoperation of integrated infrastructure (as seen in industrial parks and urban
development).

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Business model transformation
From a focus on EPC / manufacturing models
to transformation of EPC model and developing non-EPC models

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Business model transformation

Toward a more sustainable EPC business model and diversification in non-EPC models
Transformation of EPC business model to stabilize income
Additionally, diversifying the revenue structure to include both non-EPC models based on EPC and new business models

Income stability

Transformation of
EPC business modelMore sustainable
EPC
business model

Non-EPCbusiness models

Diversifying to include nonEPC business models

Expanding business models based on EPC

Using digitaltechnologies

Exploring new business

EPC
business model

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Business model transformation

Measures for transformation of EPC business model: Initiatives using digital technologies
Strengthening EPC execution capabilities by promoting the IT Grand Plan 2030 and using digital technologies
Anticipating future digital technologies and transforming EPC business through advance investments

Innovation in engineering capabilities through AI
designEnhancing EPC
execution capabilities

IT Grand Plan 2030*1
1/3 the staff hours,
twice as fast

Project digital twins and simulations basedon AWP*2 and data-centric project
execution
Dramatic improvements atconstruction sites from 3D printers
and automated construction
Improved productivity throughstandardized, modular plants
Development of smart community
technology

Future goals for 2030

2030
*1 IT Grand Plan 2030: Long-term information strategy established in 2018.
*2 AWP: Advanced Work Packaging*3 PMC: Project Management Consulting

Potential of new business models
Providing an EPC execution platform externally (SaaS)
Providing project execution services externally (consulting, PMC*3)
Providing a collaborative system with engineers worldwide

New forms of EPC, partnerships
Optimal types of EPC contracts, closer
integration with clients and contractors

Minimizing execution risk bymaking project status moretransparent through an EPC
execution platform

Innovative reframing of arrangements,
starting with relationships between
clients and contractors

Scenarios projected for 2040

2040

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Business model transformation

Business model diversification
Expanding EPC-based business models upstream and downstream while venturing into new business models for diversification

Non-EPC business model expansion based on EPC

Diversification into new business models

Licensing
Licensing

Consulting/
PMC
Consulting/PMC

Maintenance,
digital O&M

DigitalPlatform
PlatformBusiness
Participation

Energy transition● Hydrogen / fuel ammonia
technologies●Low-carbon,
decarbonization consulting● CO2 emission optimization
support● Smart O&M● Platform for generating
and monitoring carbon
credits● Energy supply / demand
optimization● CCS / CCUS business● Offshore wind business● Hydrogen / fuel ammonia
business

Healthcare /Life sciences―● Basic / master planning for
hospitals● Smart hospital O&M● Digital healthcare(medical information banks)● Hospital management

Circular economy● Chemical recycling
technologies● Related technology
consulting―● Supply chain platforms● Commercial
demonstrations of chemical
recycling● PMC for urban
development● Urbaninfrastructure O&M――

Example ofbusiness

Industrial & Urban―
infrastructure

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Organizational transformation
Strengthening our regional management framework and fostering a culture of innovation

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Organizational transformation

Stronger framework for regional management
Strengthening our regional management framework, with a focus on enhancing responsiveness tocustomers in growth markets by proposing and implementing local solutions in a timely manner.

Clients in various regions mainly approachedfrom the head office in Japan

National / regional
projects

Head office

Focus on local projects by national workforce,for greater responsivenessRegional
HQ

National / regional
projects

in Yokohama

National / regional
projects

Head office

Regional
HQ

in Yokohama

Regional
HQ

Regional
HQ
National / regional
projects

Gradually expanding coverageas overseas markets grow

● Closely focused on clients, identifying needs and creating project● Responding to client inquiries

opportunities● Focused on mega-sized projects● Focused on medium or small-sized projects● Coordinated from head office● Promoting delegation of authority and more agile operations

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Organizational transformation

More vibrant culture of innovation
Fostering a more vibrant culture of innovation required for technical commercialization and business model development tosupport transformation of business areas and models

Becoming an"ambidextrous"organization,
gaining agility
in work styles

Existing businessNew business● Pyramid-like organization● Focusing on execution efficiency● Taking core technologies to thenext level

For an innovative group of engineers
creating and pioneering
new technologies and business● Network-like organization● Focusing on external collaboration● New business exploration

The Group will reinforce its environment
for personnel recruitment / development,
exploration, and organization / administration(Innovators gather and undertake active roles)

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Commitment to carbon neutrality by 2050

Commitment to carbon neutrality by 2050
The JGC Group is committed tothe ambitious target of reducing the Groupʼs CO2 emissions to net-zero by 2050, andhelping our stakeholders reduce emissions to achieve global carbon neutrality,
a key element of “Enhancing planetary health”.

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Group message

For all stakeholders

Creating an environment of high-motivation
Three commitments are made to our stakeholders to achieve the JGC Groupʼs vision in 20 years:

We will foster a culturethat challenges
the unknown andencourages innovation

We will work
toward a shared purposeand maintain a traditionof mutual respect

We will create
an environment
where exchanges ofdiverse ideas
from a vibrant workforce
results in positive
outcomes andnew values

Our goal is the satisfaction of all working for and with the JGC Group34

Cautionary Statement

This presentation may contain forward-looking statements that reflect JGCʼs plans and expectations.
Such statements are based on currently available information and current assumptions of future events
which may not prove to be accurate. Such statements are also subject to various risks anduncertainties that could cause actual results to differ materially from those forward-looking statements.
JGC Holdings Corporation undertakes no obligation to update any forward-looking statements after thedate of this presentation. These potential risks and uncertainties include, but are not limited to:•Changes in general economic conditions, including foreign currency exchange rates, interest rates
and other factors that could affect our profitability•

Changes in government regulations or tax laws in jurisdictions where we conduct business

For questions concerning this material please contact :JGC HOLDINGS CORPORATIONGroup Management Development Department
Tel︓81-45-682-8026 Fax︓81-45-682-1112 E-mail︓ir@jgc.com

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