Program Management Contractor & Investment Partner
Annual Report 2014
April 1, 2013 – March 31, 2014

01
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Program Management Contractor& Investment Partner

Corporate Governance

Financial Section

JGC Group

Contents

02 — About JGC
03 — Major Projects Received in Fiscal 201304 — 	Fiscal 2013: Major Achievements in
Investment and Service Business

04 — Financial Highlights
05 — To Our Stakeholders
07 — 	Special Feature 1
Meeting the Challenge of the Offshore Sector

08 — 	Special Feature 2
 ull-Scale Entry into North America—F
Developing important sites to expand
our operational scale

09 — Review of Operations
11 — Performance Highlights by Business Sector
11 — Performance Highlights by Region
12 — Major Projects
12 — Major Contracts Awarded
13 — Project Execution Capabilities
That Yield Competitive Advantages

13 	Framework for Optimizing Costs,
Delivery Times, and Quality

14	
Challenging the Frontier of Technology
and Conquering Difficult Projects

14 Promptly Meeting the Increasing Needs for HSE

Using this Annual Report

15 — 	Environmental Activities and Contribution to Society

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16 — Corporate Governance
18 — 	JGC’s Management Structure
18 — Financial Section

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40 — Outline of JGC

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Financial Highlights

39 — JGC GroupTo Our Stakeholders

Caution regarding Forward-Looking Statements
This annual report contains information about forward-looking statements
related to such matters as the plans, strategies, and business results of JGC
and the JGC Group.
These forward-looking statements represent judgments made by theCompany based on information available at present and are inherently
subject to a variety of risks (see page 41) and uncertainties. The Company’s
actual activities and business results could differ significantly due to factors
including, but not limited to, changes in the economic environment, businessenvironment, demand, and exchange rates.

02
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

About JGCEPC Services

Operating as a world-leading
engineering contractor

Oil and Gas
Production

Power / Water /New Energy

Since its founding in 1928, JGC Corporation (JGC) has executed over 20,000
projects on which it has provided Engineering, Procurement and Construction(EPC) services for plants and facilities in approximately 80 countries worldwide.
Petroleum
Refining

In a wide variety of sectors—ranging from the hydrocarbon sector, including oil,Oil and Gas Field
Developmentgas, LNG, and petrochemicals, to such other sectors as non-ferrous metals,
nuclear power, pharmaceuticals, hospitals, and laboratories—in countries andregions around the world, JGC has demonstrated original engineering technology and excellent project management capabilities.

Infrastructureand Urban
Development

LNG・GTL

Petrochemicals
and
Gas Chemicals

Power
Generation,
Nuclear Power,
and
New Energy

Living andGeneralProduction

Investment and Service Business

Medical andWelfare Facilities

Transforming ourselves into
a new company that transcends
the limits of an engineering company

Environmental
Conservation

We are not only extending the technical capabilities and knowledge cultivated through
EPC technology to our investment businesses in such fields as power generation, desalination,water, the environment, new energy, and resource development; we are also working to deliver
planning and management services in the urban development sector. To contribute to thedevelopment of the countries in which we do business and our clients, we are striving totransform ourselves into a new company that transcends the limits of a traditional
engineering company.

New Business

03
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Major Projects Received in Fiscal 2013
The JGC Group executes EPC projects in various countries and regions of the world.
Here, we introduce major projects received in fiscal 2013.

U.S.

CanadaMalaysia

KuwaitLarge-Scale ethylene Production Plant

Large-Scale LNG Plant

Floating LNG Plant

Upgrading of a Large-Scale Oil Refinery

From U.S.-based Chevron Phillips Chemical Company LP, JGC

JGC received an order for a project, being promoted by Chevron

JGC received an order for a project to construct a floating LNG plant in

JGC received an order from Kuwait National Petroleum Company

received an order for a project to construct an ethylene production

Canada Limited, to construct a large-scale LNG plant in the Canadianthe offshore gas fields of Sabah, Malaysia. This project is being planned(KNPC) for a large-scale oil refinery upgrading project. KNPC is now

plant that will include the world’s largest ethane cracker facility. This

province of British Columbia, and it is now waiting for the final investment

by Malaysia’s state-owned oil and gas company (PETRONAS).

operating three oil refineries in Ahmadi, which is in central Kuwait.

project represents the first order JGC has received for a large-scaledecision by the client. In performing EPC services as a joint-venture

Furthermore, on the project, which involves the third commercial

The objective of the project is to upgrade the three refineries into an

project in North America, and JGC will be mainly in charge of the coreleader, JGC will be primarily in charge of the liquefaction ­process

floating LNG plant to achieve the final investment decision in the world,

integrated refining complex mainly intended to produce low-environ-facilities of the production plant.

facilities that will be the core of the LNG plant.

JGC will be mainly in charge of the liquefaction facilities.

mental-impact fuels that meet European standards. As the groupleader, JGC will be primarily in charge of EPC services related to therevamping of Mina Al-Ahmadi Refinery, as well as installing new facilities
such as an Atmospheric Residue Desulfurization Unit, a Vacuum
Distillation Unit, and a Delayed Coker Unit.

1. Project
2. Location
3. Client
4. Contract form
5. Partner
6. Capacity

1.	Large-Scale LNG Plant /Front End Engineering and Design (FEED)
2. Canada
3.	Pacific Northwest LNG Ltd.
4. Lump-sum Turnkey
1.	Large-Scale Refineries / Upgrading

5. KBR

2. Kuwait

6.	LNG: two-train plant with capacityof 12 million tons per year

3. Kuwait National Petroleum Company (KNPC)
4. Lump-sum Turnkey
5. GS Engineering & Construction Corporation
SK Engineering & Construction Co., Ltd.

1. Large-Scale LNG Plant

6. N/A

2. Canada
3. Chevron Canada Limited
4. Undisclosed
5. Fluor
6.	LNG: two-train plant with a capacity of 11
million tons per year

1.	Refinery / Upgrading
2. Singapore
3.	Singapore Refining Co. Pte. Ltd (SRC)
4. Lump-sum Turnkey
5. N/A
6.	New Gasoline Desulfurization Unit:
26,000 bpsd
Cogeneration Unit: 72 MW

1. LNG Plant / Rejuvenation

1. Floating LNG Plant

1.	Mega-Solar Power Plant

1.	Large-Scale Ethylene Plant

2. Malaysia

2. Malaysia

2. Japan

2. U.S.

3. Malaysia LNG Dua Sdn. Bhd.

3. Petroliam Nasional Bhd. (PETRONAS)

3. Futtsu Solar, Inc.,

3.	Chevron Phillips Chemical Company LP

4. Lump-sum Turnkey

4. Lump-sum Turnkey

4. Lump-sum Turnkey

4. Lump-sum Conversion

5. N/A

5. Samsung Heavy Industries Co., Ltd.

5. N/A

5. Fluor

6. N/A

6. LNG: 1.5 million tons per year

6. Electric Power: 40,000 kW

6. Ethylene: 1.5 million tons per year

04
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Fiscal 2013: Major Achievements in Investment and Service Business
Setting its sights on further business expansion, the JGC Group is carrying out project management and investment businessin various countries and regions of the world. Of all these endeavors, we introduce below our major achievements in fiscal 2013.

Along with IHI Corporation (IHI) and Japan Marine United Corporation (JMU), JGC acquired capital

Net Sales

opment of offshore resources. Having previously studied participating in Brazil’s offshore resource
development market, which requires high technical capabilities, JGC will work on this project bybringing together IHI’s plant engineering technology and JMU’s ship construction technology.
Electric Power and Steam Project in Saudi Arabia
Along with Marubeni Corporation and Saudi-based Aljomaih Holding Co., JGC signed a contract

EAS shipyard

to provide electric power and stream to three oil and gas complexes that are owned by Saudi

Financial Section

JGC Group

For the years ended March 31.

Consolidated

leading resource-rich countries, is expected to develop into the world’s largest market for the devel-

Corporate Governance

Financial Highlights

Investment in Brazil’s Largest Shipbuilding Company
in Brazil’s largest shipbuilding company, Estaleiro Atlântico Sul S.A. (EAS). Brazil, one of the world’s

Environmental Activities andContribution to Society

Competitive Advantages

Millions of yen

Thousands of
U.S. dollars

2014

2013

2012

2014

¥  675,821¥  624,637¥   556,967$ 6,566,469

Operating Income

68,254

64,12367,054

663,175

Income before Taxes on Income and Minority Interestsin Earnings of Consolidated Subsidiaries

76,91062,31371,479747,279

Net Income

47,17946,17939,111

458,405

Net Income per Share (in yen and U.S. dollars)

186.90182.91154.901.82

New Contracts

818,161594,091

793,278

7,949,485

1,729,317

1,549,813

1,506,146

16,802,536

Millions of yen

Thousands of
U.S. dollars

Outstanding Contracts

Aramco, the Saudi state-owned oil company, in Eastern Saudi Arabia. Under the contract, JGC andpartners will construct cogeneration facilities and operate them for 20 years. Since the 1980s, JGC
has undertaken many projects to construct facilities for oil and gas complexes for Saudi Aramco,
and JGC feels that the conclusion of this most-recent contract was due to its having received favor-

Non-Consolidated

able comprehensive evaluations for past achievements.

Net Sales

2014

2013

2012

2014

¥  455,280¥  454,261¥   451,724$ 4,423,630

Operating Income

49,724

48,94654,218483,133

Income before Taxes on Income

66,09556,25060,708642,198

Net Income

43,104

44,14734,304

418,811Net Income per Share (in yen and U.S. dollars)

170.75174.86135.86

1.66

Company over a period of 20 years. This is the second mega-solar photovoltaic power generation

New Contracts

531,167

468,427

342,983

5,160,970

project in which JGC has participated in Japan. Management of the project will be carried out by

Outstanding Contracts

1,119,394

1,043,505

1,005,260

10,876,351

Mega-Solar Photovoltaic Power Generation Project in JapanIn Kamogawa City, Chiba Prefecture, JGC is participating in a project that calls for the constructionof a mega-solar power plant with a generating capacity of approximately 31,000 kW (equivalent tothe annual power consumption of approximately 11,000 ordinary households). Furthermore, based

Cogeneration facilities

on a fixed-price buyback program, the electricity generated will be sold to Tokyo Electric Powera special-purpose company that is wholly owned by JGC, and the EPC services for the power plant

Notes: 1. U.S. dollar amounts represent translations of Japanese yen, for convenience only, at the rate of ¥102.92 = $1.00, the prevailing rate of exchange at March 31, 2014.
2. Net income per share is computed based on the average number of shares of common stock outstanding during the period.

will be performed by JGC itself. In this way, JGC is executing the project systematically,
from business development to construction work.
Hospital Project in Cambodia
In Phnom Penh, the capital city of Cambodia, a project is under way for the construction ofa hospital, to be mainly staffed by Japanese doctors and nurses, that will offer more-dependable
medical services to Cambodian citizens. The project will be managed by a Cambodian subsidiary

Conceptual drawing of the Kamogawa mega-solar
power plantin which JGC has more than a 50% stake. The subsidiary will receive equity support fromthe Innovation Network Corporation of Japan and then outsource the medical management of

Net Sales

Net Income

New Contracts

Outstanding Contracts(Billions of yen)(Billions of yen)(Billions of yen)(Billions of yen)

800

50

the hospital to Kitahara Medical Strategies International. Over more than 30 years, JGC has

900
46.1
44.1

675.8

undertaken more than 250 projects involving engineering and construction, as well as consulting,

40

624.6

600

for medical facilities in Japan. Furthermore, since 2008, JGC has conducted a Private FinanceInitiative (PFI) project, involving construction and management, at the Tokyo Metropolitan

451.7

447.2

Matsuzawa Hospital, which was entrusted to it by the Tokyo Metropolitan Government.

400

Accordingly, based on its steadily expanding achievements, JGC will contribute to raising

455.2

30

414.2
359.5
317.5

20

the level of medical services available in Cambodia.

1,729.3

733.5
675.5

34.3

454.2

818.1

793.2

43.1

39.1

556.9

2,000

47.1

600

594.0

569.1

531.1
27.1

21.2

1,506.1

1,500
618.2

1,549.8

468.4

25.4

1,163.2
1,114.1

22.8

1,119.3
1,005.2

1,000 982.5 953.5

1,043.5

342.9

300
200

0

500

10

Tokyo Metropolitan Matsuzawa Hospital

2010

2011

2012

 Consolidated
 Non-consolidated

2013

2014

0

2010

2011

2012

 Consolidated
 Non-consolidated

2013

2014

0

2010

2011

2012

 Consolidated
 Non-consolidated

2013

2014

0

2010

2011

 Consolidated
 Non-consolidated

2012

2013

2014

05
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

To Our Stakeholders
In fiscal 2013, ended March 31, 2014, JGC recorded all-time highs for consolidated net sales and all profit categories, from consolidated
gross profit to consolidated net income. In fiscal 2014, JGC expects to post higher sales but lower profits. The Company is following
a growth path in the medium-to-long term, and it therefore considers the year to be a kind of pre-harvest period. Due to increasing
demand for energy in emerging countries and continuing high crude oil prices, energy-related investment is expected to remain strong in
the future. Thus, JGC expects fiscal 2014 to be not only a year in which it sets its sights on consolidated net sales of more than ¥1 trillion
but also the initial year of a new stage in its development. With that agenda in mind, JGC will work to further improve its technicalcapabilities and project management expertise as it strives to meet the challenge of achieving rapid progress in its development.

Summary of fiscal 2013
All-time highs recorded for consolidated net sales and each category of profit.
Order backlog reaches an all-time high of ¥1.7 trillion.
In the consolidated results for fiscal 2013, JGC succeeded in recording

Masayuki Sato

Chairman and Representative Director

Koichi Kawana

President and Representative Director

JGC’s highlights in the investment field were also numerous. In Japan,

all-time highs for net sales as well as all categories of profit. Fiscal 2013

the Company put a strong effort into the business model whereby it

was the third fiscal year in a row in which net income reached an all-time

invests in mega-solar projects and executes the related EPC projects.

high. Furthermore, JGC’s orders received exceeded the target of ¥650.0

Overseas, it invested in a shipbuilding company in Brazil; a power andbillion, reaching ¥818.1 billion, as the Company won a string of orders

steam supply plant in Saudi Arabia; and a hospital in Cambodia, which

for large-scale projects. These orders included, in the second quarter,

is a pioneering business in one of Japan’s primary growth strategies—

an ethylene plant project in the United States and, in the fourth quarter,

namely, the export of total medical care packages. Each of these deals

a floating LNG plant project in Malaysia and an oil refinery upgrading

should not be considered a mere investment, for each utilizes JGC’sproject in Kuwait. As a result, the order backlog has reached an all-timeknowledge acquired by executing EPC projects worldwide and willhigh of ¥1.7 trillion.

therefore serve as a foothold for JGC’s future business expansion.

Initiatives in strategic regions and fields
Operating regions expanded primarily through the cultivation of the North American market.
Full-fledged expansion into the offshore sector was undertaken through floating LNG plants projects.

JGC achieves its all-time highest net income and begins
a period of dedicated expansion of operational scale.

With the rapid popularization of unconventional resources, particularly

Additionally, in February 2014, JGC became the first Japanese

shale gas and shale oil, which began to be developed in North America

company to receive an order for a floating LNG plant, as the world’s

in the mid-2000s, North America suddenly emerged as an extremely

first construction of such a plant in a deep-sea gas field. As the demand

important market for the JGC Group. Expanding the operations of its

for energy continues to rise, companies are taking on challenges inUnited States procurement subsidiary, which had existed for some time,

regions that, until now, had been undeveloped because of the height

JGC established JGC America, Inc., thereby constructing a frameworkof the hurdles in profitability and technology. One of those challenges isfor the execution of EPC projects. Then, based on the trust relationships

deep-sea gas fields. By utilizing the knowledge gained in many onshorethat it had developed with clients in the Middle East and Asia, JGC

LNG plant construction projects, and by applying sophisticated techni-

received an order for an ethylene plant in the United States in July 2013.

cal capabilities to address unique issues related to the ocean surface,

Furthermore, for the large-scale LNG construction project in Canada

particularly limited hull space and ocean swell, JGC succeeded infor which JGC was selected as the EPC contractor in January 2014,

winning this key order. Through the smooth execution of the project,

JGC now awaits the final investment decision (FID) by the client. JGC’s

JGC aims to also consolidate its firm position as a leading contractor

success against leading engineering companies in North America andin the offshore sector.

becoming the first Japanese company to receive an order for a largescale energy plant was a major step in the Company’s entry into theNorth American market.

06
ToAbout
OurJGC
Stakeholders

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate GovernanceOutlook for fiscal 2014

Aiming for improved corporate value

Accelerated strengthening of project execution system and establishment

As a leading engineering contractor, the JGC Group has carried outof a foothold for coming opportunities to expand operational scale

operations in the global market from an early stage and faced a wideIn our consolidated earnings forecasts for fiscal 2014, ending March

the Middle East, North Africa, and Southeast Asia, to achieve net sales

31, 2015, we estimate net sales of ¥780.0 billion, gross profit of ¥78.0

in the range of ¥600 billion to ¥700 billion we pursued high profit margins

billion, and net income of ¥42.0 billion. As mentioned earlier, we recog-

based on advanced risk management. The North American market

nize that the current fiscal year will be a pre-harvest period while we

has emerged as a result of the shale revolution, and a number offollow, on the earnings front, a growth path in the medium-to-long term.

¥1 trillion scale LNG projects are being planned throughout the world.

With the focus on LNG as well as other projects currently under execution,

For these projects, to mitigate the risks arising from the size of

we intend to do our best to increase profits by further strengthening

the monetary amounts involved, the contracts will likely be hybrid

our project execution system in those fields in which we possess deep

contracts with features of cost-plus-fee (cost reimbursement) contracts

knowledge and by rigorously implementing cost reduction initiatives.

and lump-sum contracts. Amid this change in the operating environment,

On the order front, we have set a target of ¥800.0 billion, which

in order to increase profits we must steadily execute multiple technicallyexceeds the target of ¥650.0 billion in the fiscal year under review.

sophisticated large-scale projects based on a certain level of gross

The current target reflects the expectations that, in such regions as

profit margin. We view this change as providing the perfect opportunity

the Middle East, Southeast Asia, and North America, the oil majors,

for us to expand our operations in new markets, especially North

as well as the national oil companies of resource-rich countries, will

America, Russia, and East Africa, and to achieve a staged expansion

continue making aggressive capital investments.

of our operational scale to beyond ¥1 trillion in net sales. In the future,

With regard to our outlook for the medium-to-long term,by undertaking deals based on lump-sum contracts primarily inby maximizing our abilities we will make a transition from the pursuit ofgross profit margins to the pursuit of absolute profit amounts.

Financial Section

We would like to ask all our shareholders and other stakeholders fortheir continued, constant support and guidance.

variety of changes worldwide. The market has shifted from Southeast
Asia to the Middle East and North Africa, and, at present, the North
American market is emerging. Since the era of coal and petroleum,

JGC Group

August 2014

the energy field has seen the emergence of natural gas, which releases
less greenhouse gases and, unlike crude oil, occurs widely throughout
the world. Moreover, at present, the production of LNG, which boasts
superior transportability, is increasing. Looking back, we have always
read the market changes and, without becoming biased toward our
successful experience in any particular region or field, we haveensured that desire to meet challenges of new situations is a funda-

Masayuki Satomental part of our company culture. Looking ahead, in a manner that

Chairman and Representative Directortranscends the limits of a traditional engineering company, we intend
to fully apply the technical and management capabilities that we havedeveloped in executing well over 20,000 projects in approximately
80 countries throughout the world. In this way, by continuing to take on
the challenges of solving issues of a global magnitude, including environmental problems, water and food scarcity, and social infrastructure

Koichi Kawana

development, we will help achieve an improved global society.

President and Representative Director

07
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Special Feature 1

Meeting the Challenge of the Offshore Sector

PFLNG2 project

In February 2014, JGC received an order from Petroliam Nasional Bhd. (PETRONAS), Malaysia’s state-owned oil and gas company,
for the Engineering, Procurement, Construction, Installation and Commissioning (EPCIC) services for a floating LNG project (PFLNG2
project), which will be the third commercial floating LNG plant in the world. With this order, JGC has started its full-fledged entry into
the offshore sector. As a result of the shale gas revolution, the construction of onshore LNG plants for large gas fields is being planned andcarried out all over the world. Meanwhile, against a backdrop of further increases in demand for energy, plans for the construction of
floating LNG plants for offshore stranded gas fields* are expected to progress in the future. Setting its sights on further business expansion,
JGC will strive to gain further achievements in the offshore sector, particularly in the area of floating LNG projects.

This project encompasses what is expected to be the world’s third practical realization of a floating* Stranded gas field are a gas field that has been discovered already but left undeveloped because of such considerations as investment profitability.

requires responses to many technical challenges, including pitching and rolling due to waves andA groundbreaking, first-time achievement for a Japanese company
LNG plant, which will be the first such achievement for a Japanese company. In addition, as thefirst example in the world of a floating LNG plant for a deep-sea gas field at a depth of more than
1,000 meters, this is a pioneering project in the offshore oil-gas industry.
High technical capabilities required
Compared with the construction of an onshore plant, the construction of a floating LNG planttides, construction within a limited site area, safety measures, and the securement of cooling on
the ocean’s surface. By fully utilizing its construction experience involving onshore LNG plants andConceptual drawing of the completed PFLNG2 project

its abundant experience and know-how in modular construction*, JGC is aiming to bring the project
to a successful completion.

What is a floating LNG plant?

* Modular construction refers to the method of fabricating, at a location different from the construction site, plant facilities that are
divided into small pieces and then carrying out final assembly on site.

Using gas produced from an offshore gas field, a floating LNG plant is a floating production facility
for refining, liquefying, storing, and shipping natural gas on the ocean. By using a floating LNG

Outlineplant, the operator can generally reduce the cost of pipelines for transporting feedstock gas andClientPlant Description

Contract

DeliveryPartnerPetroliam Nasional

Floating LNG plantLump-sumFirst half

Samsung Heavy

Bhd. (PETRONAS)(Yearly output:

Turnkeyof 2018

Industries Co., Ltd.

minimize impacts on the installation environment. Furthermore, even after the gas field isdepleted, a floating LNG plant can be diverted for use in another region. Therefore, because thedevelopment of small and medium-sized gas fields that are not economically viable with onshore

1.5 million tons)

plants can be realized, floating LNG plants have been attracting attention as a new concept for
ensuring profitability to operators.
JGC’s major achievements in the offshore sector
2004

LPG FPSO facility in Angola

Completion of an LPG FPSO (Floating Production, Storage and Offloading) facility for Angola;

Further ventures into the offshore sector
Investment in a shipyard in Brazil

completion of an LPG FPSO facility for Indonesia

In June 2013, with IHI Corporation and Japan Marine United Corporation, JGC set up

2012

Receipt of an order for basic engineering (FEED) services on the PFLNG2 project

2013

Investment in a shipyard in Brazil

Sul S.A. (EAS). In Brazil, as economic growth spurs increasing demand for energy, large-scale

2014

Receipt of an order for EPCIC services on the PFLNG2 project

development of offshore oil and gas fields is progressing. With this investment as a foothold, JGC

a special-purpose company in Brazil in order to invest in shipbuilding company Estaleiro Atlântico

will work proactively to break into the Brazilian plant construction market and expand its businessin the Brazilian offshore sector.

LPG FPSO facility in Indonesia

EAS shipyard

08
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Special Feature 2

Full-Scale Entry into North America—
Developing important sites to expand our operational scale

Environmental Activities andContribution to Society

Competitive Advantages

Corporate Governance

Financial Section

Kitimat LNG Project

USGC Ethylene Project

ClientChevron Canada Limited

ClientPartner

Fluor

Location

Bish Cove, British Columbia, Canada

Capacity

11 million tons per year (2 liquefaction trains of 5.5 million tons)

Chevron Phillips Chemical Company LP
Investment ratio
Chevron Corporation: 50%
Phillips 66: 50%

Scope

EPC (waiting for the final investment decision)

Partner

Fluor

Contract form

Undisclosed

Location

Baytown, Texas, U.S.

Capacity

1.5 million tons per year

Scope

EPC

Contract form

Lump-sum Conversion

Pacific Northwest LNG Project

In fiscal 2013, JGC achieved ¥818.1 billion in orders received, substantially exceeding its initial consolidated orders target of ¥650.0
billion, which was announced at the beginning of the fiscal year. We thereby pushed our order backlog up to ¥1,729.3 billion, our highest
level ever. Due to the acquisition of projects not only in the Middle East, Southeast Asia, and Japan but also in North America and Russia,
the areas in which we do business are steadily increasing. In particular, in the North American market, which continues to grow as a resultof the shale gas revolution, we are steadily accumulating experience. For example, in the fiscal year under review, we received an order forEngineering, Procurement and Construction (EPC) services for the world’s largest ethylene production plant in the United States, and wewere also selected as an EPC contractor for a large-scale LNG plant in Canada. In the future, by strengthening our presencein North America even more, we will achieve a further expansion in the scale of our business.

ClientPacific Northwest LNG Ltd.
Investment ratio
PETRONAS: 62%
China Petroleum and Chemical Corporation (Sinopec): 15%
JAPEX: 10%
INDIAN OIL CORPORATION LTD.: 10%
Brunei National Petroleum Company Sendirian Berhad: 3%

Partner

KBR

Location

Lelu Island, Prince Rupert, British Columbia, Canada

Capacity

12 million tons per year (6 million tons per train)

Scope

FEED

Expanding ouroperations into
new regions,
including North
America

Strong market conditions andsteady improvements in performance
JGC acquires its first large-scale project in North America:

20,000

Outstanding Contracts by Region
(%)
2.4
11.2

15,000Ethylene production project on the U.S. Gulf Coast
major achievement in North America. Using ethane, derived from shale gas, as a feedstock in the

35.3

1.5 million tons of ethylene a year. Chiefly through process licenses held by the French company
Technip S.A., formerly Shaw Stone & Webster Inc., JGC has so far executed a total of 44 ethylene

for this current project is a consecutive order from the same client, which indicates that the JGCGroup has been evaluated comprehensively as a company that can apply the required knowledge0

In the North American market, with the realization of many LNG plans, the number of skilled workers
considerably. Furthermore, due to strict environmental regulations around construction areas and1.1

such issues, JGC is taking on the challenge of further expanding its business in North America

18.2

18.9

based on its high technical capabilities and know-how in the plant construction field overseas.

25.6

25.3

6.7

8.2

construction and thereby helped minimise the construction that had to be done on site. In this

2013/3

2014/3way, we have reduced the environmental footprint on the areas around the construction sites.

which we received in 2004 and 2007, through a joint venture sponsored by the U.S. company
Chevron Phillips Chemical Company LP. Both projects were completed successfully. The order

Issues in new markets

3.9

5,000

projects worldwide. Of particular importance were the orders for ethylene projects in Saudi Arabia,

Toward a further expansion of business scale

the growing size of projects, advanced technical requests from clients are increasing. While facing

10,000

cracking process to produce ethylene, the plant will be the world’s largest ethylene plant, producing

JGC America, Inc.

is expected to come under pressure in the future, and wages for workers are expected to rise

43.2

In July 2013, JGC received an order for a project to build an ethylene plant, which marks its first

JGC Group Japan  Asia  Middle East  Africa
 Oceania  North America and others

and high technical capabilities.

Achieving reliable project execution through modular construction
On the Gorgon LNG project and the Icthys LNG project in Australia, JGC was involved in modular
Pre-assembled modules aboard a module carrier,image courtesy of the Chevron-operated Gorgon Project

Coping with a diversified risk profile through new contract formats
Until now, JGC has increased its profits by executing projects (mainly in Asia, Oceania, and the
Middle East) based on lump-sum sum turnkey contracts. In North America, meanwhile, in order toLong-awaited large-scale project: Kitimat LNG projectcope with such risks as project enlargement, cost overruns caused mainly by surging wages for

In 2013, JGC began talks with client Chevron Canada Limited regarding a project to build

workers, and schedule delays, we have introduced cost-plus-fee (cost reimbursement) contracts

a large-scale LNG plant in Canada. In the same year, we received an order for verification (FEED

in some cases. While ascertaining the risks on each project, through a fusion with lump-sum

Verification) services for the project, which we performed as a potential gateway toward receiving

contracts, we are able to successfully complete projects in a reliable manner.

the order for the EPC work further down the line. Our performance on the FEED portion of the
project, as well as our past construction safety results, and our past project execution achieve-

Establishing a local presence to further strengthen the trust relationships

ments through the use of modular construction were evaluated favorably by the client, and wewith our clients and partners

were selected as the EPC contractor in January 2014. Through the execution of this project,

In 2013, JGC established JGC America, Inc., in Houston, Texas. Through timely communication,

which will be the Company’s first undertaking of an LNG project in North America, JGC will

we are aiming to strengthen relationships with our clients and local partners even more. Additionally,­establish its presence in the region.

by increasing our scale in terms of the number of employees to around 300 during fiscal 2014 andCeremony for the USGC ethylene project

to 1,000 in a few years, we plan to assume a proactive role in executing projects in North America
in the future.

JGC America opening ceremony

09
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Review of Operations
In oil and gas producing countries, with which JGC’s total engineeringbusiness is deeply integrated, there continue to be many plans forinvestments in the oil and gas sector due to increasing energy demand
resulting from population and economic growth in emerging nations.
In North America in particular, due to the unprecedented progressin shale gas development, many projects—primarily LNG and gas
chemical projects—that use cheap and abundant shale gas as feedstock are now in the planning and execution stages. Furthermore, inthe Middle East and North Africa, in addition to oil and gas processing
projects, there are plans—mainly for petroleum refining and gas
chemical projects—aimed at increasing the added value of oil andgas. Meanwhile, in Southeast Asia, Russia, and East Africa, several
LNG projects are being planned as a further increase in LNG demandis expected in Asian markets.
In this positive environment, the JGC Group implemented
aggressive sales activities aimed at achieving its target for orders and­continued to strengthen cost-competitiveness throughout its organization. Furthermore, by paying the closest attention to the various
risks on projects currently in progress, the JGC Group has worked
to execute its projects even more reliably.

Oil and Gas Development Projects

Petroleum Refining Projects

LNG Projects

Against the backdrop of continuing high crude oil prices, as well as

In the petroleum refining field, oil companies, including the majors,

In the LNG field, besides strong demand in such countries as Japan,

high energy demand mainly in emerging countries, investment in oil

are proceeding with downsizing and separating slumping downstream

South Korea, and Taiwan, demand is expected to continue toand gas upstream business by JGC’s clients is expected to increasebusinesses, mainly by closing aging refineries with high maintenanceincrease in India, China, and the emerging countries of Southeast

in the medium-to-long term. Of particular importance, the countries ofcosts in developed countries. At the same time, those oil companies

Asia. Against this backdrop of brisk demand, more than US$700

North America, which due to the shale gas revolution boast abundant

are concentrating their management resources on upstream busi-

billion* is expected to be invested in LNG production facilities andgas reserves, and the major Middle Eastern countries that possess

nesses, especially the development and production of crude oil andtransport facilities by 2035. From a regional viewpoint, with a focus

conventional oil resources have continued to attract attention as thenatural gas. In this way, the companies are striving to further

on North America, Russia, East Africa, and Southeast Asia, multiple

main countries to receive capital investments. Amid such conditions,strengthen their earning power. Meanwhile, in China, India, Southlarge-scale LNG plant construction projects are being planned allin addition to completing a large-scale gas processing plant in theAmerican countries, and emerging countries in Southeast Asia, against

over the world. Amid these circumstances, JGC received an order,

Emirate of Abu Dhabi in the United Arab Emirates (IGD Habshan

a backdrop of solid economic growth, oil companies, including thefor which it is now waiting for the final investment decision by the

5 Project), JGC has also steadily executed many projects in Qatar,

majors, plan to continue constructing or expanding oil refineries.

client, for a large-scale LNG project in Canada as well as orders forincluding a large-scale gas processing project (Barzan Onshore

Primarily in the Middle East, capital investments continue to be mademultiple LNG-related projects. In the future, while paying close

Project). In the future, with a focus on the Middle East, JGC will

for not only expanding crude oil production capacity and refining

attention to market conditions, we will ascertain highly feasible

aggressively implement sales activities aimed at receiving orders

capacity but also constructing or expanding refineries with the latest

projects and work aggressively to receive even more orders.

for additional projects.

low-environmental-impact facilities. Amid these circumstances, in the* Source: IEA World Energy Outlook 2014

Middle East and Southeast Asia, JGC received several orders for
Focus: Oil and gas processing plants, oil and gas well sitefacilities, and other plants and facilities

projects to upgrade oil refineries. Furthermore, in Japan, JGC received
orders for multiple oil refinery upgrading projects, which included the

Focus: L NG plants, LNG receiving facilities,
and other LNG-related facilities

construction of solvent de-asphalting plants and engineering work to
Major projects (Over ¥10 billion)
Net Sales• Barzan Onshore Project (Qatar)• IGD Habshan 5 Project (U.A.E.)

shut down oil processing capabilities.
Focus: P etroleum refining plants, utility facilities,
off-site facilities, and other plants and facilities

Major projects (Over ¥10 billion)• Barzan Onshore Project (Qatar)

Net Sales• PETRONAS LNG Train 9 Project (Malaysia)• Donggi-Senoro LNG Project (Indonesia)• Gassi Touil Gas Processing Project (Algeria)
Outstanding Contract

Major projects (Over ¥10 billion)

Net Sales• KNPC Clean Fuels Project (Kuwait)
Outstanding Contracts• Papua New Guinea LNG Project (Papua New Guinea)
Outstanding Contracts• PETRONAS LNG Train 9 Project (Malaysia)• Donggi-Senoro LNG Project (Indonesia)• Papua New Guinea LNG Project (Papua New Guinea)• KNPC Clean Fuels Project (Kuwait)• Jazan Refinery Project (Saudi Arabia)

IGD Habshan 5 Project (U.A.E.)

Signing ceremony for the KNPC clean fuels project (Kuwait)

Donggi-Senoro LNG project (Indonesia)

10
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Review of Operations

Chemical Projects(Power Generation, Nuclear Power and New Energy Projects; Living and General Production

Other Fields Projects; Environmental Protection, Social Development, and IT Projects; and other projects)

Catalysts and Fine Products Business

Investment and Service BusinessIn the area of petrochemical and gas chemical products, due toIn the power generation, nuclear power, and new energy fields,

In the JGC Group’s petroleum refining and de-NOx catalysts operations,

Under “NEW HORIZON 2015,” the Company’s medium-term man-falling domestic demand and declining price-competitiveness, theJGC received orders for multiple projects to construct mega-solar

due mainly to the resumption of refinery operations following theagement plan launched in fiscal 2011, JGC aims to further expand its

production of basic petrochemical products, such as ethylene andpower plants in Japan. Furthermore, the Company is executing

Great East Japan Earthquake and the conversion of treated oil into

project management and its investment business. In the fiscal year

propylene, is contracting in developed countries, including Japan.

projects to construct Integrated coal Gasification Combined Cycle

heavy oil, the usage of fluid catalytic cracking (FCC) catalysts

under review, the JGC Group was able to achieve an investment inFurthermore, production bases are shifting to oil and gas producing(IGCC) demonstration plants and other projects. In the living andincreased. Nonetheless, product shipments in export transactions

Brazil’s largest shipbuilding company; participation in a project incountries in the Middle East as well as to China, India, and othergeneral production field, following orders received and work done indecreased, primarily because of inventory adjustments by customers.

Saudi Arabia to provide electric power and steam; participation in a

emerging countries. In the Middle East, companies are implementing

previous years, JGC received orders from multiple major domestic

In the Group’s chemical catalysts and electronic materials operations,mega-solar photovoltaic power generation project in Kamogawa City,

measures to integrate their petroleum refining businesses and petro-

pharmaceutical companies for construction work on pharmaceuticalsales of chemical catalysts remained strong and increased slightly;

Chiba Prefecture, in Japan; and participation in a hospital project inchemical businesses to increase added value at each step in their

manufacturing facilities, which it is now executing. Furthermore,

however, sales of desulfurization agents for fuel cells decreased,

Cambodia. In the fields of conventional electric power generation,

value chains and to diversify their product portfolios, and as a resultin the environmental protection, social development, and IT fields,

mainly on inventory adjustments by customers. In the JGC Group’s

new energy, environmental protection, water, and resource develop-

many new projects are being planned into the future. Meanwhile,

besides receiving an order for construction work on a medical facility

fine products operations, sales fell considerably on two main factors:

ment, as well as in new areas, the JGC Group intends to actively

in North America, with the goal of realizing a highly cost-competitivein Japan, JGC completed the nickel refinery construction project thatstart-up delays related to not only silica sol used as an abrasive forundertake projects in which it fully utilizes its advantages.

gasification industry that uses abundant shale gas as the feedstock,it had been executing in the Philippines.

computer hard disks but also new uses of abrasives; and customers’

companies are continuing to make aggressive capital investments.
In the future, a diversity of projects for the construction of chemicalplants, particularly ethylene plants, will likely be realized.
In the United States, since its receipt of an order for a large-scale
ethylene production plant project in 2013, the JGC Group has beensteadily adding to its achievements. Looking ahead, with a focus on
the Middle East, the JGC Group will take aggressive action toincrease its orders for petrochemical and gas chemical projects.

Focus: Clean energy (especially GTL and DME) production
facilities, power plants, radioactive waste treatment
systems, spent nuclear fuel reprocessing facilities,
accelerators and fusion facilities, pharmaceutical plants,
non-ferrous metal plants, waste treatment facilities, andother plants and facilities

adjustments of inventories of functional materials for optical film.

Major achievements:

Consequently, although sales in the JGC Group’s catalysts and fine

• Investment in a shipyard in Brazil

products business decreased from the previous year, profits in the• Participation in a project in Saudi Arabia to provide electricbusiness were largely unchanged due to reductions in product unit
costs and the effects of a weaker yen.

power and steam• Participation in a mega-solar photovoltaic power generation

In this business environment, in its catalysts operations,project in Kamogawa City, Chiba Prefecture, Japanthe JGC Group will work to recapture domestic market share for• Decision to execute a hospital project in Cambodia

petroleum refining and de-NOx catalysts, and to expand sales inoverseas markets, while continually making cost reductions.
Furthermore, primarily through its development of sophisticatedFocus: P etrochemical plants, gas chemical plants,

products in the area of hydrotreating catalysts, the JGC Group will

and other plants

strive to enhance its competitiveness. In the area of chemical catalysts,
meanwhile, the JGC Group will work to respond to the needs ofMajor project (Over ¥10 billion)

customers that are expanding overseas as well as to the integration

New Contractof petroleum refining and petrochemical operations by petroleum• USGC Ethylene Project (U.S.)

refinery companies. Finally, in its fine products operations, the JGCGroup intends to improve profits by aggressively carrying out a range ofmeasures. These measures include the commercialization of abrasive
silica sol for use in the new abrasives field and the establishment ofmass production for the silica sol; marketing and expanded sales of
new products in the lineup of materials used in displays and touch
panels; and, in overseas markets, the expanded sales of optical andConceptual drawing of the completed IGCC demonstration plant for Osaki CoolGen
Corporation (Hiroshima, Japan)

Ceremony for the USGC Ethylene Project (U.S.)

Mega-solar power plant for Futtsu Solar, Inc. (Chiba, Japan)

lacquer materials for glasses and raw materials for cosmetics.

Various catalyst products

EAS shipyard (Brazil)

11
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Environmental Activities andContribution to Society

Competitive Advantages

Performance Highlights by Business Sector

Performance Highlights by Region

All figures are on a consolidated basis.

All figures are on a consolidated basis.

Corporate Governance

Financial Section

JGC Group(Millions of yen)(Billions of yen)800

Net Sales (Years ended March 31)

2014

2013

2012

2011

2010

 Oil and Gas Development

158,257(158,001)
55,179(35,806)
322,454(310,863)
37,805(27,849)
19,435(254)
19,195(11,021)
13,792(65)
12,537(7,244)

232,554(232,042)
48,012(22,297)
185,649(178,439)
32,707(14,209)
19,536(471)
43,022(13,738)
15,517(101)
9,129(4,954)

219,574(219,123)
42,191(14,682)
103,299(97,435)
51,426(29,338)
24,825(4,613)43,059(18,693)
21,570(176)
8,974(4,682)

150,688(149,895)
40,292(8,711)
61,512(58,969)
84,377(64,049)
20,869(12,621)
17,255(7,938)25,344(46)
10,851(6,937)59,382(58,753)
110,566(31,894)
42,428(41,122)
111,216(87,611)
20,391(12,359)
8,128(1,502)
16,488(15)
7,827(3,578)

 Petroleum Refining
600

 LNG
 Chemical

400

P ower Generation, Nuclear Power,and New Energy
 Living and General Production

2000 Environmental Protection,
Social Development, and IT
 Others
2010

2011

2012

2013

2014

	Total Engineering Businessand Other Business(Overseas)incl. Total Engineering Businessincl. Other Business Catalysts and Fine Products
Total

638,656(551,107)
624,807
13,84937,164
675,821586,129(466,254)
576,627
9,501
38,508624,637

514,922(388,746)
506,177
8,745
42,045556,967

411,191(309,170)
401,198
9,992
36,031
447,223

New Contracts (Years ended March 31)

2014

2013

2012

2011

2010

55,383(55,145)
215,242(190,946)
314,180(312,966)
136,462(125,432)
63,548
(36)
5,185
(581)
14,629(56)
13,529(8,387)818,161(693,553)
804,100
14,061

7,341(7,004)
214,388(192,197)
249,887(242,363)
46,557(36,137)
43,081
(149)
7,327
(604)
17,258(44)
8,248(4,378)594,091(482,879)
584,450
9,640

53,909(53,322)62,672(34,935)
570,988(569,583)
33,865(10,539)
21,490(5,069)21,472(3,034)
19,610(176)
9,267(5,108)793,278(681,768)
784,642
8,636

264,042(263,483)
67,188(52,129)
180,096(157,267)
24,838(9,288)23,575(8,463)29,255(79)
11,280(94)
17,924(13,351)
618,203(504,157)
608,288
9,914

352,087(351,358)
39,358(13,228)
233,553(233,382)
25,492(6,495)15,038(2,249)48,902(34,325)
11,046(34)
8,069(3,844)
733,549(644,918)
—
—

2014

2013

2012

2011

2010

116,100(116,076)
413,927(393,195)
952,448(939,156)
139,562(136,698)
81,523
(577)
3,966
(933)
20,144(1)
1,645(1,082)
1,729,317(1,587,720)
1,727,745
1,572

218,973(218,933)
253,864(238,055)
960,721(937,053)
40,905(39,114)
37,410(794)
17,976(11,373)
19,307
(10)
652
(–60)
1,549,813(1,445,274)
1,548,452
1,360

432,181(431,966)
84,692(65,358)
877,577(854,223)
23,217(13,347)
15,502(2,709)53,361(24,196)
17,565
(67)
2,048
(943)
1,506,146(1,392,813)
1,504,533
1,613

599,271(599,192)
63,830(44,724)
343,687(315,875)
41,055(32,424)
19,681(2,804)
68,137(33,045)
19,532(67)
8,060(6,815)
1,163,256(1,034,949)
1,161,323
1,932

501,414(501,034)
38,024(2,354)
232,881(225,311)
106,953(93,548)
19,541(9,035)49,029(33,449)
33,597
(19)
1,149
(596)
982,594(865,351)
980,664
1,929(Millions of yen)(Billions of yen)

Net Sales (Years ended March 31)

2014

2013

2012

2011

2010

 Japan

87,548

119,874

126,176

102,020

139,592

 Asia128,727

73,32960,686

31,24028,197500

 Middle East

143,209204,899

205,161

181,683

141,355400

 Africa

44,69834,672

44,34240,89930,533300

 North and South America

18,78912,003

5,140

4,633

18,425200

 Europe and CIS

431

1,465

2,122

1,342

5

100

 Oceania

215,251

139,884

71,291

49,372

18,320Total Engineering Businessand Other Business

638,656

586,129514,922411,191

376,430

 Catalysts and Fine Products

37,16438,50842,04536,03137,828675,821624,637

556,967

447,223

414,258

2014

2013

2012

2011

2010

 Japan

124,607111,211

111,509

114,045

88,630 Asia170,726

293,356

22,333

189,61445,547

 Middle East

187,183

122,601

20,339264,921228,985

4,018

1,266

37,883

13,504

134,106

 North and South America

149,669

2,802

33,09023,1009,305

 Europe and CIS

25,206

330

2,617

2,391

142

 Oceania

156,748

62,521

565,505

10,625

226,831

Total

818,161594,091

793,278

618,203

733,549

2014

2013

2012

2011

2010

 Japan

141,597

104,540

113,333

128,306

117,243

 Asia438,274

396,275

171,432

207,01443,896

 Middle East

326,270

282,294

346,304

530,201

461,257

 Africa

19,31559,99593,043

102,769

138,964

 North and South America

167,695

36,814

46,59918,861349

 Europe and CIS

25,116

341

1,432

1,187

137

 Oceania

611,048

669,550734,001

174,914

220,746

Total

1,729,317

1,549,813

1,506,146

1,163,256

982,594

700
600

0

376,430(236,837)——
37,828414,258

2010

2011

2012

2013

2014

Total

(Millions of yen)(Billions of yen)900

 Oil and Gas Development
 Petroleum Refining
 LNG

600

 ChemicalP ower Generation, Nuclear Power,and New Energy
 Living and General Production300 Environmental Protection,
Social Development, and IT
 Others
0

2010

2011

2012

2013

2014

Total
(Overseas)incl. Total Engineering Businessincl. Other Business(Millions of yen)(Billions of yen)

New Contracts (Years ended March 31)

900

600

 Africa

300

0

2010

2011

2012

2013

2014

(Millions of yen)(Billions of yen)

Outstanding Contracts (Years ended March 31)

2,000 Oil and Gas Development
 Petroleum Refining

1,500

 LNG
 Chemical

1,000 Power Generation, Nuclear Power,and New Energy
 Living and General Production

5000 Environmental Protection,
Social Development, and IT
 Others
2010

2011

2012

2013

2014

Total
(Overseas)incl. Total Engineering Businessincl. Other Business(Millions of yen)(Billions of yen)

Outstanding Contracts (Years ended March 31)

2,000

1,500

1,000

500

0

2010

2011

2012

2013

2014

12
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Major Projects

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Major Contracts Awarded
Announced as of March 31, 2011

Business Sector

ContractsAwarded

Project

Location

Business Sector*

ClientProject

Location

Completion

OGD

Ras Gas Company Limited

Gas Processing Plant

Ras Laffan / Qatar—

Oil and Gas Development Projects

Singapore Refining Co. Pte. Ltd (SRC)

Petroleum Refining-Related Plant

Jurong Island / Singapore

PET

ExxonMobil Asia Pacific Pte. Ltd.

Petroleum Refining-Related Plant

Jurong Island / Singapore

2014

Petroleum Refining Projects

Kuwait National Petroleum Company

Petroleum Refining-Related Plant

Ahmadi / Kuwait

LNG

PT Donggi-Senoro

LNG Plant

Luwuk / Indonesia

2014

LNG Projects

Petroliam Nasional Bhd. (PETRONAS)

Rejuvenation Work for LNG Plant

Bintulu / Malaysia

LNG

JX Nippon Oil & Energy Corporation

LNG Receiving Terminal

Aomori / Japan

2015

Petroliam Nasional Bhd. (PETRONAS)

Floating LNG Plant—

ENV

Ibaraki Resident Co-operative Union

Headquarters Building

Ibaraki / Japan2012

JSC Yamal LNG

Estimation, Detailed Engineering and
Early Procurement for LNG Plant

Sabeta / Russia

ENV

Medical Co. LTA.

Hospital

Kumamoto / Japan

2012

ENV

Hokuyokai Group

Hospital

Hokkaido / Japan2012

Pacific Northwest LNG Ltd

FEED Service for LNG Plant

Lelu Island, Prince Rupert / Canada

Chemical Projects

Chevron Phillips Chemical Company LP

Ethylene Plant

Baytown / U.S.

Power Generation, Nuclear Power,and New Energy Projects

Kamogawa Mirai Solar

Mega-Solar Power Plant

Chiba / JapanRENOVA, Inc.

Mega-Solar Power Plant

Oita / Japan

Futtsu Solar, Inc.

Mega-Solar Power Plant

Chiba / Japan

Environmental Protection, Social
Development, and IT Projects

YAME HOSSINKAI

Hospital

Fukuoka / JapanOil and Gas Development Projects

Ras Gas Company Limited

Gas Processing Plant

Ras Laffan / Qatar

Groupement Bir Seba

Crude Oil Processing Facilities

Bir Seba / Algeria
Puerto La Cruz / Venezuela

Petroleum Refining Projects

LNG Projects

Contracts
Under WayPDVSA Petroleo, S.A. (PDVSA)

Heavy Crude Oil Upgrading Facilities

Nghi Son Refinery Petrochemical Limited
Liability Company

Petroleum Refining andPetrochemicals Complex

Nghi Son / Vietnam

Saudi Arabian Oil Co. (Saudi Aramco)

Petroleum Refining

Jazan / Saudi Arabia

Gorgon Joint Venture

LNG Plant

Barrow Island / Australia

PT Donggi-Senoro LNG

LNG Plant

Luwuk / Indonesia

JX Nippon Oil & Energy Corporation

LNG Receiving Terminal

Aomori / Japan
Darwin / Australia

Ichthys LNG Pty Ltd

LNG Plant

Esso Highlands Limited

LNG Plant

Port Moresby / Papua New Guinea

Petroliam Nasional Bhd. (PETRONAS)LNG Plant

Bintulu / Malaysia

INPEX Masela, Ltd.

FEED Service for Floating LNG Plant—

Anadarko Moçambique Área 1, Limitada

FEED Service for LNG Plant

Cabo Delgado / MozambiquePower Generation, Nuclear Power,and New Energy Projects

Osaki CoolGen Corporation

Integrated coal Gasification Combined
Cycle (IGCC) Demonstration Plant

Hiroshima / Japan

Living and General Production
Projects

Terumo Yamaguchi Corporation

Pharmaceutical-Related Facilities

Yamaguchi / Japan

Japan CCS Co., Ltd

Carbon Dioxide Capture, Storage,
and Compression Facilities

Hokkaido / JapanSHONAN DAIICHI HOSPITAL

Hospital

Kanagawa / Japan

Environmental Protection, Social
Development, and IT Projects

Oil and Gas Development Projects

Contracts
Completed

ClientAbu Dhabi Gas Industries Ltd.

Gas Processing Plant

Habshan / Abu Dhabi

Sonatrach

Gas Processing Plant

Gassi Touil / Algeria

Petroleum Refining Projects

ExxonMobil Asia Pacific Pte. Ltd.

Petroleum Refining-Related Plant

Jurong / Singapore

Power Generation, Nuclear Power,and New Energy Projects

General Directorate of Electric Energy
Production in Nassiriyah

Cooling Water Facility

Nassiriyah / Iraq

Japan Nuclear Fuel Limited

Vitrification Facility

Aomori / Japan

Living and General Production
Projects

TOYAMA CHEMICAL CO., LTD.

Pharmaceutical-Related Facilities

Toyama / Japan

Environmental Protection, Social
Development, and IT Projects

Medical Management Matsuzawa Co., Ltd.

Hospital

Tokyo / Japan

Announced as of March 31, 2012
Business Sector*

ClientProject

Location

Completion

OGD

Groupement Bir Seba

Crude Oil Processing Facilities

Bir Seba / Algeria

PET

PDVSA Petroleo, S.A. (PDVSA)

Heavy Crude Oil Upgrading Facilities

Puerto La Cruz / Venezuela—

LNG

Ichthys LNG Pty Ltd

LNG Plant

Darwin / Australia

2016

—

LNG

Petroliam Nasional Bhd. (Petronas)

FEED Service for LNG Plant

Bintulu / Malaysia

2013

PWR

Japan Nuclear Fuel Limited

Vitrification Facility

Aomori / Japan

2013

PWR

General Directorate of Electric Energy
Production in Nassiriyah

Cooling Water Facility

Nassiriyah / Iraq

2013

LIV

TOYAMA CHEMICAL CO., LTD.

Pharmaceutical-Related Facilities

Toyama / Japan

2013

ENV

Japan Freight Railway Company

Hospital

Tokyo / Japan

2012

ENV

Houshikai Group

Hospital

Fukuoka / Japan2013

Announced as of March 31, 2013
Business Sector*

ClientProject

Location

Completion

PET

Nghi Son Refinery Petrochemical Limited
Liability Company

Petroleum Refining and Petrochemicals Complex

Nghi Son / Vietnam

2016

PET

Saudi Arabian Oil Co. (Saudi Aramco)

Petroleum Refining

Jazan / Saudi Arabia

2016

LNG

Petroliam Nasional Bhd. (Petronas)

Rejuvenation work for LNG Plant

Bintulu / Malaysia

2015

LNG

INPEX Masela, Ltd.

FEED Service for Floating LNG Plant

—

—

LNG

Petroliam Nasional Bhd. (Petronas)

FEED Service for Floating LNG Plant

—

2013

LNG

Anadarko Moçambique Área 1, Limitada

FEED Service for LNG Plant

Cabo Delgado / Mozambique—

PWR

Osaki CoolGen Corporation

Integrated coal Gasification Combined Cycle (IGCC)
Demonstration Plant

Hiroshima / Japan

2017

LIV

Terumo Yamaguchi Corporation

Pharmaceutical-Related Facilities

Yamaguchi / Japan—

ENV

Japan CCS Co., Ltd

Carbon Dioxide Capture, Storage, and Compression
Facilities

Hokkaido / Japan

2016

ENV

SHONAN DAIICHI HOSPITAL

Hospital

Kanagawa / Japan—* Business Sector

OGD : Oil and Gas Development Projects
LNG : LNG Projects
PWR : Power Generation, Nuclear Power, and New Energy Projects
ENV : Environmental Protection, Social Development, and IT Projects

PET : Petroleum Refining Projects
CHM : Chemical Projects
L I V : Living and General Production Projects

13
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Framework for Optimizing

Financial Section

JGC Group01

Costs, Delivery Times, and Quality
Our projects can be broadly divided into two types: those with lump-sum turnkey contracts, which require project execution
based on predetermined costs and delivery deadlines, and those with cost-plus-fee contracts, which provide that a fee be added tothe costs required for the projects. In the process of undertaking many lump-sum contracts, to produce appropriate profits while
strictly adhering to the prescribed costs and delivery times, JGC has developed superior risk forecasting abilities and a reliable project
management method that incorporates risks as well as fostered an organizational culture that enhances these abilities. Through thisexperience, all employees have been instilled with the awareness that project execution is a vital part of the JGC Group’s operations,and, on that basis, we have optimized costs, delivery times, quality, and secured profits, and gained customer trust.
	Recently, our wealth of capabilities has been put to practical use on several large-scale projects, based on cost-plus-fee contracts
that are now being planned in North America, and our proposals, which have made good use of our risk forecasting abilities, have

Project Execution Capabilities

been highly regarded.

That Yield Competitive Advantages
The experience and achievements that the JGC Group has gained through its application ofadvanced engineering technology and project management capabilities to a wide array of plants
in nearly every region of the world have been highly regarded by its clients.
	In this section, with a focus on the project execution capabilities that have supported our many
achievements until now, we introduce one of the key strengths that has enabled us to provide
appropriate solutions in cooperation with various related parties and to always fully complete our
projects, even when faced with unexpected events.

In fiscal 2013, we began an initiative in which new employees are dispatched to construction
work sites in Japan and overseas during their first year of employment so that they canacquire project execution ability at an early stage. The goal is not only to have each
person experience firsthand the plants that are JGC’s end products but also to haveeach person, by becoming involved in the construction work stage, learn how one’s
own design drawings affect plant construction and understand the importance of taking
responsibility for delivering plants to clients while adhering to the requirements of delivery
times and quality. Furthermore, the staff members involved in our plant projects comprisea diversity of individuals who have various points of view, and, along with customers,
Training program in Indonesia

vendors that are suppliers of equipment, and subcontractors to which the JGC Groupoutsources construction work, more than several dozens of nationalities are represented.
Thus, the new employees, acting as members of JGC, learn the teamwork of striving withvarious interested parties to achieve the completion of plants.

14
Project
Execution Capabilities
That Yield
Competitive Advantages
About JGC
Financial
Highlights
To Our Stakeholders

Special Feature

Review of Operations

02

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

03

Challenging the Frontier of Technology
and Conquering Difficult Projects

Promptly Meeting the Increasing Needs for HSE

The achievements that JGC has made through the execution of its projects are a history of always having met—through the use of

In recent years, when designing large-scale plant facilities and operating plants, it has been required worldwide to take into accountdeep knowledge of a variety of process technologies and the use of its own engineering component technology—the challenges of

the impact of those activities on health, safety and environment (HSE). In particular, the European and North American oil majors haveoperating in new regions and industrial fields.

recognized that dealing organizationally with issues concerning HSE allows them to remain competitive in world markets and leads	At present, the JGC Group boasts the impressive record of having participated in the construction of LNG plants that account forto their being considered good corporate citizens that contribute to society. JGC has focused on the importance of HSE from an

one-third of the total output of all the LNG plants in the world. This success story began when the JGC Group resolutely took on theearly stage. Furthermore, while aiming to become the world’s leading contractor in the area of HSE results, JGC has aggressively

challenge of undertaking LNG plant construction in the early 1970s, which was a time when LNG itself was still a minor energy source

implemented and strengthened HSE initiatives in its project executions. One of those initiatives is the IIF* activity aimed at achieving

with little or no track record.

zero accidents and other incidents at construction sites. In this activity, everyone involved with construction work is encouraged to	And now, because the development of oil and gas fields has occurred on a massive scale worldwide, the development of energy

build trust relationships, and, based on the fundamental idea of respecting each other, a safety culture is fostered throughout thesources in 3D regions*, which involve long distances in the depths of the sea and to the consuming regions, will be required for thewhole organization by changing each person’s awareness of and attitude toward HSE.

future. JGC considers regions involving difficult development to be a challenging new field, and it will proceed with aggressively* Incident and Injury Free

developing and introducing new technology as it aims to accomplish projects demanded by its clients.
* Difficult-to-access regions referred to with the words deep, difficult, and distance.

JGC is proceeding with modular construction as a technology to combine plant

On the large-scale gas processing plant project in Qatar, for which new construction

construction in difficult-to-develop regions with profitable plant execution. The modular

work is now in progress at one of the world’s biggest construction sites, more thanconstruction refers to a method of fabricating the equipment that comprises the plant and

30,000 workers from 45 countries are carrying out IIF activities in a proactive manner.

piping at a location different from the construction site, then dividing the equipment into

On this project, from July 2012 to April 2014, a record of no suspension of operations

a number of pieces of that can be re-integrated on site. The method is very effective inand no disasters was achieved over more than 130 million hours, a figure that is one

cases where construction execution is difficult, particularly the case of construction sitesof the highest in the world. JGC is advancing steadily toward becoming the world’s

with harsh weather, such as those in areas of extreme cold, and the case of remote areas

leading contractor.

where neither sufficient employment of workers nor sufficient land for construction canbe secured.
Pre-assembled modules aboard a module carrier,image courtesy of the Chevron-operated Gorgon Project

JGC has established its own highly reliable modular construction method including
experience accumulated on the Gorgon LNG plant and the Ichthys LNG plant in Australia.
Besides applying this method to the new construction of onshore LNG plants and floating
LNG plants that are currently under way, JGC plans to aggressively introduce it on project
executions in 3D regions, which it expects will increase in number in the future.

Atmosphere of carrying out safety check activities in a team

15
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Environmental Activities and Contribution to Society
In accordance with the JGC CSR Basic Policy, the JGC Group will continue to involve
itself in activities that contribute to the well-being and prosperity of society.
JGC CSR (Corporate Social Responsibility) Basic Policy 
JGC is committed to fulfilling its role as a member of society (Corporate
Citizenship). We recognize that the foundation of our business isstrengthened by contributing to the prosperity of the world economy
and society; to the healthy preservation of the global environment; andto sustainable development of society in harmony with nature.
To meet this commitment, JGC hereby establishes the following
principles, which shall be applied throughout its operations.

1.	We shall conduct our business with a full understandingof the importance of quality, safety, and the environment.
2.	We shall make contributions to society that draw on theunique strengths of the JGC Group.
3.	We shall comply with all legal requirements, both within
Japan and internationally, and conduct our business ina fair and transparent manner under a proper corporate
governance system.
4.	We shall disclose necessary information to our stakeholders
in a timely and appropriate manner.
5.	We shall endeavor to maintain and further improve fairhuman resource management to develop the abilities of ourpersonnel based on mutual trust and responsibility.
6.	We shall promote CSR awareness and further develop our
CSR contributions, reflecting input from stakeholders.
Environmental Activities 
JGC’s Engineering & Construction (E&C) business, which provides
Engineering, Procurement and Construction (EPC) services for energyrelated plants, such as those for oil and natural gas, is closely related toenvironmental protection in and of itself.
Since the 1960s, JGC has worked on environmental issues as anengineering contractor, striving to develop cleaner petroleum products,
make its plants more energy-efficient, and eliminate the production of
hazardous waste. Through to today, our understanding that our businessactivities can themselves contribute to environmental protection has notchanged, and it is symbolically expressed in our corporate philosophy.
Furthermore, we are expanding our environmental protection activities
into a wider range of fields outside of our EPC business, including our new
clean development mechanism (CDM) business, which we are developing
as part of our enterprise investment initiatives.
Working to provide our clients with plants that place a minimum
burden on the environment is also an important part of JGC’s environmental management approach. We engage in testing various techniques
and improvements at each stage of our EPC business, and our methods
have been evaluated highly by our clients.

Measures taken to lessen the environmental impact of operations at both
our head office and the construction sites of our EPC projects constitutethe foundation of JGC’s environmental management efforts. We havebeen improving our records every year for CO2 reductions at the head
office and reduction/recycling of waste products at construction sites.
Considering the Environment in Business Activities 
The JGC Group executes projects around the world, in sectors ranging
from resource development, oil, natural gas, and petrochemicals to theenvironment, catalysts and fine chemicals, pharmaceuticals, water
resources, and new energy. Through all these projects, the JGC Group
always strives to fully account for factors concerning the environment.
Environmental aspects must of course be considered in EPC services,
but they must also be considered in marketing and at all project stages,
from feasibility studies to maintenance and plant decommissioning, as
well as in our investment and service business. The JGC Group has
added environmental factors to its engineering and management capabilities, as it aims to help create a sustainable society.
In this section, we look at some examples of how the JGC Groupconsiders the environment at the construction planning and construction
stages of project execution.

■ Construction Planning Stage
Meticulous concern for sustainability at plant construction sites is essential.
In many countries, the construction of new plants requires submissionof an environmental impact assessment (EIA) report for the purpose ofminimizing environmental impacts wherever possible. The EIA report
describes in detail the impacts that construction work will have on the air,water, soil, flora, fauna, and marine life. JGC applies environmental management systems to construction work to ensure that it demonstrates
consideration for the environment in compliance with EIA reports,emphasizing the following points:	We practice strict legal compliance and environmental risk management
by identifying environmental laws and regulations and environmental
considerations that have a bearing on construction work.
	We endeavor to increase customer satisfaction and reinforce
communication with stakeholders.
	We manage environmental risks and endeavor to minimize the possibility of incidents that may have a negative impact on the environment
by anticipating, preparing for, and speedily responding to emergencies.
Before starting construction work, we consider the above mattersand unfailingly perform the following preliminary work:	Identifying environmental impacts of the construction work	Setting environmental objectives and targets for the construction work	Preparing an environmental management plan for theconstruction work	Providing new workers with environmental education and training
We incorporate the Zero Emissions Initiative 2015, a JGC Group
independent environmental conservation initiative, into this preliminary
work and thoroughly confirm environmental conservation measures
before starting construction.

■ Construction Stage
Construction work by JGC is preceded by thorough considerationof possible effects on the environment at the planning stage.
Matters decided in the Construction Environmental Management
Plan include the project environmental policy, which organizations
and persons will be responsible for environment-related work, whatenvironmental protection measures will be put in place, guidelines forenvironmental performance monitoring and measurement, emergency
prevention and mitigation procedures, environmental monitoring, andmonthly reporting. Following the start of construction, a review of theenvironmental aspects of the project (the relationship between construction work and the environment) is conducted to confirm whether theconstruction work differs from the plan. If any deviations are found, theplan is revised to ensure that there are no omissions in the environmental
considerations included in the environmental management framework.

	Maintaining and managing operations so as not to cause
environmental problems.
	Making continuous improvements so as to raise earnings while
taking environmental concerns into consideration.
Based on this shared understanding, JGC has continued to explore
the significance of environmental targets and goals, and it has promoted
environmental management activities along the following lines:	Environmental management activities based on environmental targets
and goals are business operations in themselves, rather than separate
activities.
	The operating policies of divisions and departments are set with theaim of raising the actual performance of the organization and business
operations.
	The environmental targets are to be considered as quality targets.
In this way, JGC’s environmental management systems are loosely
linked to the quality management system, and JGC promotes environmental improvement activities that are applicable to its core business.

Environmental Management Systems
ChairmanPresident

Continuous Improvement of Environmental Management Systems 
In December 2003, JGC obtained ISO 14001 certification for its
environmental management systems from Lloyd’s Register Quality
Assurance (LRQA).
After three renewals, JGC completed the fiscal 2013 maintenanceexamination in October 2013, which included overseas sites.

■ Making Environmental Improvement Activities
More Applicable to Core BusinessIn the past, environmental improvement activities at JGC’s headquarters
have tended to center on the reduction of waste, paper, and electricity
consumption. For this reason, the challenge for JGC has been to shiftfocus to environmental improvement activities more related to its corebusiness. In order to address this challenge, all department heads took
part in discussions about how to identify opportunities for environmental
conservation in their primary work and review target-setting procedures.
These discussions established the following shared awareness:
	It is important to strive for the development of a sustainable society byaddressing environmental problems through our core business and to link
this with the creation of corporate value and greater competitiveness.
	Amid rising global concern over environmental problems, JGC has
been helping to address environmental issues directly and indirectly
through its core business activities. JGC recognizes that its pursuitof sustainability must be undertaken in its core business.
	JGC is mindful of the following points for achieving continuous
development.

HSSE Committee
Division Division

Quality
Assurance, Safety& Environment
OfficeEngineering

EMS Working Group

Working Group

Project Execution

Office Activities
Execution

Procurement

Construction■ Construction Waste Recycling
JGC aims to minimize its final disposal amount of waste through rigorous
implementation of the Zero Emissions Initiative 2015. In fiscal 2013, thefinal disposal rate for construction work in Japan was 5.8%. Each siteuses industrial waste management survey forms prescribed by JGC to
confirm the recycling rate with companies taking charge of intermediate
waste disposal before contracting with them. Because there is a large
difference among waste disposal companies in terms of the disposal
method for construction sludge and the recycling rate in particular, an
extensive comparative analysis of each company is conducted regarding
the disposal methods and disposal costs. Furthermore, appropriate plans
for separating waste are drawn up before the commencement of construction based on the nature of the waste generated. During construction,
efforts are made to improve the recycling rate by rigidly enforcing waste
separation in accordance with the plans.

16
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

1. Environment
Actively contribute to environmental conservation
2. Education
Support the professional development of future engineers
3. Science and Technology	Support science and technology as the basis for sustainable development
4. Community Contribution
	Contribute to the sustainable development of the communities
where we conduct business
Here, we introduce actual activities in the areas of education, scienceand technology, and community contribution.
Forest Conservation in the Watershed Forestsof Kanagawa Prefecture, Japan 
In August 2008, to commemorate its 80th anniversary, JGC becamea watershed forest partner in Kanagawa Prefecture’s Water Source
Conservation Project, and it has thus marked its fifth full year of conducting
environmental conservation activities. In September 2013, by making a
donation to Kanagawa Prefecture, it was decided that we would continue
our watershed forest conservation activities as a reforestation partner for
another five years. Through this project, employees of the JGC Group
carry out watershed forest conservation while deepening their understanding of the role of watershed forests and the importance of thecoexistence of human beings and nature.
Activities are carried out once a month, and in fiscal 2013 a total ofmore than 100 employees participated in various events, including forest
walking and aquatic wildlife observation tours, through which they enjoyedEnvironmental Activities andContribution to Society

Corporate Governancecontact with nature in each season of the year. In September 2013, a
motor coach was chartered for an event in which about 50 people took
part. The participants included employees, their family members, andeven the president. While on board the motor coach bound for the destination, the participants had the opportunity to learn about the significanceof watershed forest conservation. Then, upon arriving at the site, under
the guidance of the forest instructors, the participants were divided into
three groups: Tree Thinning, Craftwork, and Forest Walking. In this way,while enjoying social mingling beyond the bounds of nationality and age,the participants saw first-hand the importance of forest conservation.
By, for example, incorporating forest activities into the training
program for new employees, JGC plans to continue focusing on soundenvironmental practices.

JGC GroupStudents Tour of the Donggi-Senoro LNG Project Site 
At the site of the Donggi-Senoro LNG Project in Indonesia, we conducted
a site tour for high-school and university students from Central Sulawesi.
This program has been held 10 times since it began in 2012, and a totalof 482 students have participated.
Broadly speaking, this program has two purposes. The first is topromote an understanding of the Donggi-Senoro LNG plant construction
project among the local residents. Because more than 50 villages ofvarious sizes exist in the area around this project, the building of good
relationships with the local communities is indispensible for JGC tosmoothly execute this project. In conversations with their families, thecomments that the student participants on this site tour make about thesocial contributions of our project will likely increase the understandingof the adults around them.
The second purpose is to provide, through the site tour, a reason
for the student participants to think about their own future careers.
We would be pleased for the students to take an interest in oil and gas
development by actually experiencing a project site in the same way thatsocial studies field trips are conducted in Japan.
In short, JGC feels that holding these sorts of events for young
people is equivalent to contributing to the futures of the applicablecountries. We hope that one or many of all the participants carry highaspirations and that a young generation with dreams will be raised.

Improving Our Corporate Value by Fulfilling Our Social Responsibilities
JGC is keenly aware of the importance of proper corporate governance. Recognizing the need to foster that awareness in our corporate
culture and climate, we have formulated the JGC Corporate Philosophy. Through awareness-raising, education, and training, we will
work to win the public’s trust and maintain harmony with society in our corporate activities.
Under the JGC Corporate Philosophy, we are working to increase corporate value and realize the principles set out in this philosophy
while keeping corporate social responsibility in mind. At the same time, we make it a rule to strive for fairness and transparency in our
corporate activities, in accordance with our Code of Conduct.
Corporate Governance Framework ■ Executive Officer System
In the fiscal year under review, JGC improved its executive officer
system in order to further strengthen its management decision-making
and oversight functions and facilitate agile managerial decision making.

meetings of the Board of Directors and other important meetings, offer
necessary comments when appropriate, and further improve corporate
governance through hearings regarding the business execution of theCompany’s divisions and through surveys of domestic and overseas
offices and plants.

■ Board of Directors■ Independent Auditor

The Board of Directors is headed by the Chairman of the Board of
Directors and comprises 10 board members, including one outside board
member, and five audit & supervisory board members, including threeoutside audit & supervisory board members. In principle, the Board of
Directors meets twice a month.

The certified public accountants who audit JGC’s accounts are Kazutoshi
Isogai, Yoshihisa Uchida, and Yoshinori Saito of KPMG AZSA LLC. Fiveother CPAs and nine other individuals assist in carrying out these audits.

■ Meetings for the Execution of Business Operations
JGC has the Director and Executive Officer Committee, which meetsonce a month in principle for the purposes of sharing information regarding
the status of management policies and reporting/confirming the status ofoperations. The Chairman of the Board of Directors heads this committee,
which is composed of directors, executive officers, and audit & supervisoryboard members.
The Management Strategy Committee meets once a week in principle
to examine important matters for JGC and the JGC Group relating tomanagement strategy. The Chairman Emeritus of the JGC Group heads
this committee, which is comprised of directors, audit & supervisoryboard members, and other members.
JGC has also established the Operations Steering Committee toconsult and make decisions related to the execution of operations of JGC
Corporation and the JGC Group. Chaired by the President, this committee
includes audit & supervisory board members and other individuals
selected by the President. The committee meets twice a month in principle.
In addition, the Nominating Committee and the Assessment Committee
have been established to enhance fairness and transparency in theselection of executive personnel and in the determination of compensation
issues. The Nominating Committee and the Assessment Committee
each meet once a year in principle.

■ Audit & Supervisory Board (Members)

Many employees participated together with President Kawana

Financial Section

Corporate Governance

Environmental Activities and Contribution to Society

Social Contribution Activities ■ Basic Policy for Social Contribution Activities
The JGC Group has declared that it will contribute to the sustainable
development of society and the global environment in the JGC CSR
Basic Policy. The Group has specified four key fields for realizing this andfor conducting suitable social contribution activities.

Competitive Advantages

JGC employees with students that participated in the site tour

JGC has adopted the “company with internal auditors” model to preserve
the effectiveness of corporate governance by strengthening the frameworkof conducting audits by audit & supervisory board members. At present,
the audit & supervisory board members has five members, including threeoutside appointments. In collaboration with the Internal Audit Department
and the accounting auditor, audit & supervisory board members attend

Status of the Internal Control System ■ Internal Control System

At the meeting of the Board of Directors held on March 27, 2006,
the Basic Policy on Internal Control Systems was adopted by resolution,and it has been amended as necessary thereafter.
JGC has established the Internal Auditing Office to monitor, evaluate,
and improve the effectiveness of the internal control systems of JGC andof the Group as a whole as well as to carry out individual audits where
necessary. Additionally, JGC has created management authority regulations that specify the authority and responsibilities of all management
personnel, thereby clarifying the system of accountability for corporate
management and executive functions. JGC has also established Groupmanagement regulations for each Group member firm.

■ Compliance
In order to conduct sustainable business development as a member ofthe international community, JGC believes that it is essential for each andevery employee to conduct business in conformity with corporate ethicalstandards as well as to observe local laws and regulations not only inJapan but also overseas. To this end, JGC has formulated the Corporate
Philosophy for the entire JGC Group, the Principles of Business Conduct,
and the Code of Conduct manual as well as anti-bribery and other rules
and policies. Furthermore, by providing regular opportunities for education and training on the various laws and regulations, JGC has raised thecompliance awareness of each of its employees.
JGC recognizes that the level of compliance demanded of global
companies will increase even more in the future. In order to respond to
demands like this from international society, JGC is strengthening its
internal compliance system by expanding its specialist departments
responsible for compliance and constantly developing, implementing,monitoring, and improving its compliance programs.

17
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Corporate GovernanceIn addition, based on our recognition of the importance of building
a compliance system that also encompasses JGC Group companies inJapan and overseas, while fostering close coordination with the compliance officers of each company, JGC constantly develops, implements,
monitors, and improves compliance programs that are uniform andconsistent throughout the entire JGC Group.

■ Corporate Information Disclosure
JGC discloses information in accordance with the statutory disclosuresystem based on the Japanese Financial Instruments and ExchangeAct. In addition, in accordance with the timely disclosure system atJapanese financial instruments exchanges, JGC promptly discloses
important company information through its Public Relations & Investor
Relations Department. JGC also proactively discloses corporate information falling outside the scope of such regulations and system throughnews organizations and other media, in cases where it determines that
disclosure is desirable.

■ Status of the Risk Management System<Corporate Risk Management>
JGC has established the Risk Management Committee as part of acomprehensive risk management system designed to systematically
identify risks throughout the Group, particularly company risk related to
management, disasters, incidents, and society. The Risk Management
Committee meets as necessary.
<Project Risk Management>
Project risk management is conducted in three broad stages:
 the project selection stage,  the estimate and bidding stage, and the execution stage.
 Project Selection Stage
Global Marketing Division is constantly gathering a wide range of project
information based on various factors, such as region, client, and technical field, and activities to obtain orders are conducted based on the
study and evaluation of the following points:• Project size (value)• Technical expertise and experience required• Country risk
• Allocation of engineers• Competitive environment, etc.
The results of these studies and evaluations are used in determining
JGC’s level of interest in the respective projects.

 Estimate and Bidding Stage
The Project Risk Review Meeting analyzes project-specific risks.
The main risk management items are as follows:• Clarity of the project plan and scope of responsibility• Client’s project funding plan and project execution policy• Level of technology required and degree of difficulty• Price and supply-demand trends for materials, machinery, and labor• Degree of difficulty in meeting deadlines• Existence of excessive contractual obligations• Competitiveness of bidding environment• Appropriateness of the project execution plan
A detailed estimate policy is drawn up and an estimate is createdbased on this risk analysis.
 Execution Stage
Problems and other matters affecting the budget and timing that occur
during execution of the project are reported in a timely manner, andproblem areas are analyzed.
If improvement is needed, quick and smooth project management is
supported through instructions and assistance designed to bring about
appropriate improvements.
<Crisis Management>
Regarding crisis management, based on its Basic Procedures for Crisis
Management and on cooperation with all interested parties, including
the government and government offices, with the Security Management
Office playing a central role, JGC strives to strengthen the informationcollection and analysis that it conducts at ordinary times to improve its
various preventive measures and further strengthen its security functions,especially those for responding to emergency situations.
<Handling of Personal Information>
The JGC Group has established the Personal Information Protection
Policy and the Personal Information Protection Regulations to build asystem for managing personal information centered on those employeeswith duties that involve the handling of this information.

■ Executive Compensation

The compensation for audit & supervisory board members isdetermined within a framework centered on fixed-amount remunerationin order to help guarantee the appropriateness of audits as an independent mechanism that ensures suitable corporate governance.
JGC abolished the retirement benefit system for directors and audit &supervisory board members with the close of the 108th General Meetingof Shareholders held on June 29, 2004. It was also resolved that directors
and audit & supervisory board members who remained in office after theclose of the same meeting would be paid retirement benefit allowances
when they retire for their period in office through to the abolition of theretirement benefit system.

JGC’s basic policy on executive compensation is to secure the management personnel necessary for enhancing the global competitiveness of
JGC as an engineering contractor and continuously raising its corporate
value. Executive compensation is set within the bounds of the remuneration cap stipulated by a resolution passed at the 113th General
Meeting of Shareholders held on June 26, 2009.
Compensation for the Company’s directors comprises fixed-amountremuneration and performance-based remuneration. Furthermore, thisremuneration framework is structured so that directors can approach
their responsibilities from a medium-to-long-term perspective, consideringthat a number of years are required from winning an order through to projectcompletion in the EPC business, JGC’s main business. The fixed-amountremuneration is determined according to the position and responsibilitiesof each director. The total amount of the performance-based remuneration is limited to a maximum of 1% of the net income of the fiscal year
under review, and each director’s remuneration is determined by reflecting
the contributions of the directors to the successful accomplishment of
their responsibilities and the fiscal year performance and to provide an
incentive for the improvement of business performance. Each director’s
contribution is determined after deliberation by the Assessment
Committee to ensure the objectivity of the evaluation.

Remuneration breakdown
Category

Total
remuneration
available

Fixed-amountremuneration

Performance-based
remuneration

Numberofrecipients

Total
remuneration
paid

Numberofrecipients

Total
remuneration
paid

16 directors(excluding outside directors)¥560.20 million

16¥440.40 million

14¥119.80 million

3 audit & supervisoryboard members(excluding outside audit &supervisory board members)¥33.20 million

3¥31.20 million

2¥2.00 million

3 outside executive personnel(1 outside director and3 outside audit & supervisoryboard members)¥31.38 million

4¥29.88 million

2¥1.50 million

Note:	The annual compensation limit for directors is ¥690.00 million;
the annual compensation limit for audit & supervisory board members is ¥88.00 million.

Corporate Governance System*denotes “Direct” and “Report”

General Meeting of Shareholders
Appoint / Dismiss
Disclose / Explain

Appoint / Dismiss

Audit & Supervisory Board

Independent Auditor

Audit

Nominating Committee

Appoint / Dismiss

Audit

Board of Directors

Assessment Committee

Director and Executive Officer Committee
Management Strategy Committee
Operations Steering Committee

Business Divisions / Sections

Internal Auditing Office
Legal & Compliance Office
Risk Management Committee
Security Management OfficeSubsidiaries and Affiliates

18
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

JGC’s Management Structure
As of July 2014

Chairman Emeritus of JGC Group

Chairman and Representative Director

Yoshihiro Shigehisa

Masayuki Sato

President and Representative Director

Principal Corporate Adviser

Koichi Kawana

Keisuke Takeuchi

Financial
SectionContents

19 — Six-Year Summary—Consolidated
19 — 	Analysis of Performanceand Financial Position

21 — Risks Impacting Operations
22 — Consolidated Balance Sheets
23 — Consolidated Statements of Income
23 — 	Consolidated Statementsof Comprehensive Income

24 — 	Consolidated Statementsof Changes in Net Assets
Directors

Senior Executive Vice Presidents

Kazuyoshi Muto

Yasutoshi Okazaki

Tadashi Ishizuka

Tadashi Ishizuka3

Senior General Manager,
No. 1 Business Division

Project Director, No. 1 Business Division

Yutaka Yamazaki

General Manager,
Security Management Office

Tsutomu Akabane

Yutaka Yamazaki3

Hideaki Miura
Satoshi Sato
Masanori Suzuki
Shigeru Endo

Senior General Manager,
Process Technology Division

Executive Vice President

Tsutomu Akabane3

Hiroyuki Miyoshi

1

Audit & Supervisory
Board Members

Yukihiko Shimizu
Minoru Sakuma2
Toyohiko Shimada
Masao Mori2
Kouichi Oono2

Takashi Yasuda

Senior General Manager,
No. 2 Business Division

Executive Officers

Tadao Takahashi
JGC Gulf International Co. Ltd.
and General Manager, No. 1 Business Division

President, JGC Energy Development (USA) Inc.

Nobuhiro Kobayashi
Executive Vice President,
JGC Gulf International Co. Ltd.

Kenichi Yamazaki
General Manager, No. 2 Business Division

Yasuhiro Okuda

Senior Executive Officers

Shigeru Abe

Hideaki Miura

General Manager, No. 1 Business Division

General Manager, Quality Assurance,
Safety & Environment Office

Toru Kikuchi

Nobutaka Nohara

3

Satoshi Sato3

General Manager, Global Marketing Division

Hiroyasu Fukuyama
Senior General Manager,
Indonesia Operations

Hiroshi Bunazawa
General Manager, No. 1 Business Division

Tokutaro Nomura

Hitoshi Kitagawa

General Manager, No. 2 Business Division

Senior General Manager,
No. 3 Business Division

Shigeo Kobayashi
General Manager, No. 2 Business Division

Toru Amemiya
Masanori Suzuki3
General Manager, Global Marketing Division

General Manager,
Global Marketing Division

Yoshikatsu Nishida
General Manager, No. 1 Business Division

Masayasu Endo
General Manager, Global Marketing Division

Hisakazu Nishiguchi

Executive Vice President,
JGC America, Inc.

Senior General Manager,
Global Marketing Division

Akio Yoshida

Senior General Manager, Engineering Division

Yasushi Momose

Hiroyuki Miyoshi

Senior General Manager, Corporate Administrative& Financial Affairs Division

25 — 	Notes to Consolidated
Financial Statements

32 — Independent Auditor’s Report
32 — Six-Year Summary—Non-Consolidated
33 — Non-Consolidated Balance Sheets
34 — Non-Consolidated Statements of Income
34 — 	Non-Consolidated Statementsof Changes in Net Assets

General Manager, Global Marketing Division

Takehito Hidaka

1 Outside Director
2 Outside Audit & Supervisory Board Member
3 Secondary duty as Executive Officer

Masato Kato

24 — Consolidated Statements of Cash Flows

General Manager, Legal & Compliance Office
3

Takahiro Kobori
Managing Director,
JGC (MALAYSIA) SDN. BHD.

Kiyotaka Terajima
General Manager, Corporate Administrative& Financial Affairs Division

Yuji Tanaka
Executive Vice President, JGC Gulf International Co. Ltd.
(future appointee)

Takaya Matsuoka
General Manager, Engineering Division

35 —	Notes to Non-Consolidated
Financial Statements

37 — Independent Auditor’s Report
37 — Supplemental Explanation

19
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Six-Year Summary—Consolidated

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Analysis of Performance and Financial Position

For the six years ended March 31.
Yen amounts are in millions except per share data.

Our View of the Operating Environment

2014

2013

2012

2011

2010

2009

¥ 675,821¥ 624,637¥ 556,967¥ 447,223¥414,258¥450,912

Operating Income

68,254

64,12367,05463,55941,91952,003

effects of various measures implemented by the government and the Bank of Japan to achieve economic

Net Income

47,17946,17939,111

25,478

27,112

31,543

rejuvenation provided ample support for economic growth. On the other hand, the state of the world

Total Current Assets

575,887

460,232

376,173

319,464

283,538

335,220

Total Current Liabilities

333,354

262,439

205,772

174,293

137,728208,023

Working Capital

242,533

197,793

170,401

145,171

145,810

127,197

Current Ratio

172.8%

175.4%

182.8%

183.3%

205.9%

161.1%Net Property and Equipment

70,291

71,70864,88764,634

66,05866,509Total Assets

746,103628,758

526,169

468,503430,176

480,279

feedstock are now in the planning and execution stages. Furthermore, in the Middle East and North

Long-Term Debt, Less Current Maturities

13,001

9,363

7,591

6,624

21,92623,255Africa, besides oil and gas processing projects, there are plans—mainly for petroleum refining and gas

Total Net Assets

379,882

336,084

291,042

264,483

246,141

224,488

and East Africa, numerous LNG projects are being planned because a further increase in demand for

New Contracts

818,161594,091

793,278

618,203

733,549

506,135

LNG is expected, primarily in Asian markets.

1,729,317

1,549,813

1,506,146

1,163,256

982,594

671,341186.90182.91154.90100.83107.25124.76

Cash Dividends per Share (in yen)

46.5

45.5

38.5

30.0

21.0

30.0

Number of Employees

7,005

6,721

6,524

5,826

5,795

5,739

Net Sales

Outstanding Contracts
Net Income per Share (in yen)In the fiscal year under review, ended March 31, 2014, amid some positive signs, including improved
corporate profits, the Japanese economy underwent a gradual recovery. This recovery occurred as the

economy remained uncertain. While recovering moderately despite some softness, the world economy
continued to see significant downside risks, particularly reduced quantitative monetary easing in the
United States and rising geopolitical risks.
In oil and gas producing countries, with which the total engineering business developed by the JGCGroup is most deeply linked, many investments in oil and gas resources continue to be planned due toincreasing energy demand resulting from world population growth and emerging nations’ economic
growth. In particular, in North America, with the steady progress in shale gas development, many
projects—primarily LNG and gas chemical projects—that use cheap and abundant shale gas aschemical projects—aimed at increasing the added value of oil and gas. Finally, in Southeast Asia, Russia,

Results of Operations
Consolidated net sales for the Group in the year ended March 31, 2014, were ¥675,821 million, up 8.2%
year on year. Consolidated operating income increased 6.4%, to ¥68,254 million. Consolidated net income
increased 2.2%, to ¥47,179 million.
Net Sales

Reflecting steady progress in projects accounted for on a percentage of completion basis, consolidated
net sales increased ¥51,184 million year on year, to ¥675,821 million.
Cost of Sales and Selling, General and Administrative Expenses

Cost of sales was ¥587,437 million, increasing ¥47,273 million year on year in line with higher net sales.
Selling, general and administrative expenses decreased ¥220 million, to ¥20,130 million.
Operating Income

Reflecting higher net sales, operating income increased ¥4,131 million year on year, to ¥68,254 million.
Other Income (Expenses)

Other income (expenses) increased ¥10,466 million, from a net loss of ¥1,810 million in the previous
consolidated fiscal year, to a net gain of ¥8,656 million. Income before taxes on income and minority
interests in earnings of consolidated subsidiaries increased ¥14,597 million year on year, to ¥76,910 million.
Taxes on Income

Income tax and other taxes increased ¥8,217 million year on year, to ¥28,594 million. Meanwhile,deferred taxes on income were ¥888 million, and tax expenses (net), were ¥29,482 million.

20
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Analysis of Performance and Financial Position

Minority Interests in Earnings of Consolidated Subsidiaries

Cash Flow

Minority interests increased ¥202 million year on year, to ¥249 million.

In the fiscal year under review, cash and cash equivalents increased ¥100,323 million year on year,to ¥385,253 million.

Net Income

Net cash provided by operating activities was ¥120,577 million, mainly reflecting ¥76,910 million

As a result of the aforementioned factors, net income increased ¥1,000 million, to ¥47,179 million.

recorded in income before taxes on income as well as customer advances for projects in hand andpayment of income taxes.

Segment Information

Net cash used in investing activities was ¥18,728 million, primarily due to investments in new fields.

Reporting Segment

Financing activities used net cash of ¥10,687 million, mainly because of new borrowings and cash

Net sales in the total engineering business rose ¥48,180 million, to ¥624,807 million, the result ofdividends paid.

steady progress with projects accounted for on a percentage of completion basis. Segment profit was

Cash flow indicators for the Group are as follows:¥62,327 million.

March 31, 2014

March 31, 2012

March 31, 2013

Shareholders’ equity ratio (%)

55.2

53.4

50.2

¥37,165 million. Although sales of petrochemical catalysts remained strong, shipments of oil refining

Shareholders’ equity ratio (market basis, %)

123.1

95.5

121.5

catalyst products decreased, primarily on inventory adjustments by export customers. Furthermore,Years to redemption of liabilities (years)

in the Group’s fine products operations, shipments of abrasives for computer hard disks decreased.

Interest coverage ratio (times)

Net sales in the catalysts and fine products business decreased ¥1,343 million year on year, toSegment profit fell ¥82 million, to ¥4,209 million.

Consolidated total assets at March 31, 2014, totaled ¥746,103 million, a year-on-year increase of¥117,345 million.
Total net assets were ¥379,882 million, up ¥43,798 million year on year.
The shareholders’ equity ratio was 50.2%.
Balance sheet indicators for the Group were as follows:
March 31, 2013

March 31, 2014

Current ratio (%)

183

175

173

Fixed asset ratio (%)

52

50

45

Notes: Current ratio: Current assets / Current liabilities
Fixed asset ratio: Net property and equipment + Total other assets / Total net assets* Both indicators are calculated using consolidated financial figures.

In the fiscal year under review, orders received were ¥818,161 million, substantially exceeding the initial
target of ¥650,000 million.
A breakdown of new contracts by business sector and region is as follows:

New Contracts by Business Sector

(Billions of yen)March 31, 2013

Oil and gas development projects

Net Sales by Reporting Segment(Billions of yen)

700

55.3

6.8%

Petroleum refining projects

214.3

215.2

26.3%

LNG projects

249.8

314.1

38.4%

Chemical projects

46.5

136.4

16.7%

Other projects

75.9

96.8

11.8%

Shareholders’ Equity and Shareholders’ Equity Ratio

Free Cash Flows(Billions of yen)(Billions of yen)

450

57.1

(%)
56.3

55.2

60

53.4

576.6
335.5

506.1
245.8

90

374.6

290.4

300

40

263.9

120
101.8

50.2

401.1

March 31, 2014

March 31, 2014
Percentage of
New Contracts

7.3

624.8

400 364.8

0.1
319.5

Analysis of New Contracts
March 31, 2012

500

0.2
338.6

Notes: Shareholders’ equity ratio: (Total net assets – Minority interests) / Total assets
Shareholders’ equity ratio (market basis): Total market value of shares / Total assets
Years to redemption of liabilities: Interest-bearing liabilities / Net operating cash flow
Interest coverage ratio: Net operating cash flow / Interest expense* All indicators are calculated using consolidated financial figures.
* Interest-bearing liabilities include all liabilities reported on the Consolidated Balance Sheets on which interest was paid. Net operating
cash flow is taken from cash flows from operating activities, as reported in the Consolidated Statements of Cash Flows. Interest paid
is taken from the amount of interest paid as reported in the Consolidated Statements of Cash Flows.

Financial Position

600

0.1
145.3

79.1

60

56.6

48.3

30

300
150

200
100
0

20

0
–30

37.8

2010

36.0

2011

42.0

2012

Total Engineering Business
Catalysts and Fine Products Business

38.5

2013

37.1

2014

Effective from the fiscal year ended March 31, 2011, the Company adopted“Accounting Standard for Disclosures about Segments of an Enterprise andRelated Information” and the “Guidance on Accounting Standard for Disclosuresabout Segments of an Enterprise and Related Information.” Figures for the fiscal
year ended March 31, 2010, have been retroactively restated.

0

2010

2011

Shareholders’ Equity
Shareholders’ Equity Ratio

2012

2013

2014

0

–60

–45.0

2010

2011

2012

2013

2014

21
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Risks Impacting Operations

Analysis of Performance and Financial Position

New Contracts by Region

(Billions of yen)

The following matters regarding risks associated with the businesses of the JGC Group could potentiallyhave an effect on the judgments and decisions of investors.

March 31, 2013

March 31, 2014

March 31, 2014
Percentage of
New Contracts

Japan

111.2

124.6

15.2%

Asia

293.3

170.7

20.9%

Africa

1.2

4.0

0.5%

Middle East

122.6

187.1

22.9%

Overseas businesses generate more than 80% of the JGC Group’s total net sales. Such businesses

Oceania and Others

65.6

331.6

40.5%

are subject to country risks, including political unrest, wars, revolutions, civil strife, terrorism, changes in

Forward-looking statements are based on the best information available and give consideration to theoverall activities of the JGC Group as of March 31, 2014.
1. Risks with Overseas Causes

economic policy, default on foreign debts, and changes in exchange and taxation systems. To minimize
Future Outlook
Total Engineering BusinessIn the JGC Group’s total engineering business, despite uncertainty arising from changes in supply anddemand trends, capital investments by customers will likely remain strong in the future for the following
reasons. First, in plant markets, including the Group’s key markets of the Middle East, Africa (especially
Sub-Saharan Africa), Southeast Asia, Russia (CIS), and North America, energy demand is increasing inline with population growth and economic development in emerging nations. Second, LNG demand isincreasing in Asian markets.
Nonetheless, due to continuing price competition with our competitors mainly in Asia and Europe, thecompetitive environment is expected to continue to be challenging from the current fiscal year onward.
Amid these conditions, the Group will continue with initiatives to strengthen its cost-competitiveness in allprocesses of the EPC business. At the same time, the Group will maintain solid competitive positions infields where it has a highly competitive edge, such as LNG, develop new markets, and steadily executesophisticated projects, such as those that apply modular construction. Furthermore, we will carry out
business investments in resource development; in electric power and new energy, including solar power
generation; in environmental protection and water resources; and in such new fields as urban infrastructure development and the hospital business.
Catalysts and Fine Products Business
Due to such factors as the stagnation of markets in Europe and Japan, slowdowns of economic growthin emerging markets, and the rising prices of feedstock and fuel, the business environment facing JGC’s
catalysts operations is challenging. The JGC Group will not only focus on recapturing domestic market
share for FCC catalysts, expanding sales to overseas markets, and developing sophisticated catalysts inthe area of hydrotreating catalysts but also strive to respond to overseas expansion by chemical catalyst
customers as well as to the integration of petroleum refining and petrochemicals by petroleum refinerycompanies, with the goal of expanding its sales. In its fine products operations, the JGC Group will
aggressively take such action as responding to the rising demand for abrasives and accelerating its
overseas business expansion of raw materials for cosmetics and optical materials. Finally, with regard to
the ceramic matrix composites business acquired by Japan Fine Ceramics Co., Ltd., the JGC Groupwill strive to expand sales to domestic customers and aggressively carry out overseas business expansion.

the effects on its businesses arising from these risks, the JGC Group continuously reviews and reinforces
its risk management system, carries trade insurance, recovers receivables as early in a project as
possible, forms joint ventures, and takes various other steps. However, when changes in the businessenvironment are more radical than anticipated, and projects are canceled, suspended, or delayed, thepossibility of a negative impact on JGC’s performance arises.
2. Risks Affecting Project Execution
Almost all contracts for projects in which the JGC Group participates are lump-sum, full-turnkey
contracts. However, to enable hedging of some of the risks in these contracts, the Group uses costplus-fee contracts and contracts based on the cost disclosure estimate method, depending on the
project. The Group draws fully upon its past experience to anticipate and incorporate into each contract
provisions for dealing with the risks that threaten to arise during its execution. When confronted with
unforeseen impediments to the execution of a project, including sudden steep rises in the costs ofmaterials, equipment, machinery and labor, outbreaks of disease, and natural disasters, or if the JGCGroup’s actions or a problem during project execution should cause a major accident, the economics ofa project can be adversely affected, which can have a negative impact on the JGC Group’s performance.
3. Risks Affecting Investing Activities
The JGC Group primarily invests in resource development businesses, especially those for oil and gas;
new fuels businesses; and water and power generation businesses; as well as urban development andinfrastructure development businesses. In executing new investments and reinvestments, the Group
carries out risk assessments, as well as the monitoring of existing businesses, thereby conducting
appropriate risk management.
4. Risks of Changes in Exchange Rates
Almost all of the income from JGC Group sales generated by overseas businesses is paid in foreign
currencies. To hedge the associated exchange rate risk, we have introduced countermeasures, including
signing project contracts denominated in multiple currencies, conducting overseas procurement, orderingin overseas currencies, and entering into foreign exchange contracts. However, sudden exchange rate
fluctuations could negatively affect the JGC Group’s performance.

22
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Environmental Activities andContribution to Society

Competitive Advantages

Corporate Governance

Financial Section

JGC Group

Consolidated Balance Sheets
JGC CORPORATIONMarch 31, 2014 and 2013

assets2014

Current assets:
Cash and deposits (Notes 3, 13 & 18)
Marketable securities (Notes 9, 13 & 18)
Notes and accounts receivable (Notes 2 & 18)
Inventories (Note 4)
Deferred tax assets (Note 12)
Other current assets (Notes 2, 10 & 18)
Allowance for doubtful accounts
			 total Current assets

Property and equipment (Note 3):
Land (Notes 14 & 17)
Buildings and structures (Note 17)
Machinery and equipment
Construction in progress
Other
		

Less accumulated depreciation

			 Net Property and equipment

Millions of yen

Thousands of
U.S. dollars(Note 1)

2013

2014

¥354,200¥259,777$3,441,508

31,05325,000301,720

102,170

96,570992,71349,48544,385

480,811

15,535

15,069150,942

23,55919,523228,906

(115)

(92)

(1,118)575,887

460,232

5,595,482

25,97725,977

252,400

63,42062,316616,20760,45152,523587,359

382

7,720

3,712

4,207

2,573

40,876

154,437

151,1091,500,554(84,146)(79,401)(817,587)

70,291

71,708682,967

Liabilities and Net assets

Current Liabilities:
Short-term loans and current maturities of long-term debt (Note3)
Notes and accounts payable (Notes 2 & 18)
Advances received on uncompleted contracts
Reserve for job warranty costs
Reserve for losses on contracts
Income taxes payable
Provision for loss on guarantees
Other current liabilities (Notes 2, 10 & 18)

			 total other assets
			 total assets
The accompanying notes are an integral part of these statements.

2014

107,450

93,335

1,044,015

163,406

87,711

1,587,699

2,449

1,863

23,79521,06322,031

204,654

16,84418,759163,661

66

2,417

641

21,20929,637206,073

			 total Current Liabilities

333,354

262,439

3,238,962

Long-term Debt, Less Current Maturities (Notes 3 & 18)

13,001

9,363

126,321

Net Defined benefit Liability (Note 6)

11,725

12,627

113,923

Deferred tax Liabilities for Land revaluation (Notes 12 & 14)

3,692

3,692

35,873other Non-Current Liabilities (Notes 2 & 12)

4,449

4,553

43,228366,221292,674

3,558,307

23,511

23,511

228,440

25,60725,603248,805

327,775

291,782

3,184,755(6,478)(6,330)(62,942)

370,415

334,566

3,599,058

6,869

5,418

66,742

(51)

1,606

(496)

(6,542)(6,542)(63,564)

4,384

487

42,596(421)—(4,091)

4,239

969

41,187

			 total Liabilities

¥

$

8,424

Contingencies (Note 7)
Net assets (Note 8):
shareholdersʼ equity
Common stock			
Authorized — 600,000,000 shares,			Issued — 259,052,929 shares in 2014 and 2013
Capital surplus
Retained earnings
Treasury stock, at cost
accumulated other Comprehensive income (Loss)
Net unrealized holding gains on securities (Notes 9 & 18)
Deferred gains (losses) on hedges (Note 10)
Land revaluation, net of deferred tax portion (Note 14)
Foreign currency translation adjustments
Remeasurements of defined benefit plans (Note 6)

33,324

279,518

46,32744,578450,126

1,018

1,412

9,891

1,691

2,667

16,43022,121

14,837214,935

			 total accumulated other Comprehensive income(Loss)

99,92596,818970,900

Minority interests¥628,7582013¥  6,686

28,768¥746,103

Millions of yen

867

			 total shareholdersʼ equity

other assets:
Investments in unconsolidated subsidiaries and affiliates (Notes 9 &18)Marketable and investment securities (Notes 9 & 18)
Long-term loans receivable (Notes 2 & 18)
Deferred tax assets (Note 12)
Other

2014

Thousands of
U.S. dollars(Note 1)

5,228

549

50,797

total Net assets

379,882

336,084

3,691,042

total Liabilities and Net assets¥746,103¥628,758$7,249,349$7,249,349

23
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

Consolidated Statements of Income

Consolidated Statements of Comprehensive Income

JGC CORPORATION
Years ended March 31, 2014 and 2013

JGC CORPORATION
Years ended March 31, 2014 and 2013

2014

Millions of yen

Thousands of
U.S. dollars(Note 1)

2013

2014

Net sales (Note 11)¥675,821¥624,637$6,566,469

Cost of sales
Gross profit

587,437

540,164

5,707,705

88,38484,473858,764

selling, general and administrative expenses
Operating income

20,13020,350195,589

68,254

64,123

663,175

other income (expenses):
Interest and dividend income
Interest expense
Loss on impairment of fixed assets
Exchange gain, net
Equity in earnings of affiliates
Loss on allowance for investment
Loss on provision of guarantees
Reversal of provision for guarantees
Loss on disposition of foreign currency translation adjustments
Other, net (Note 17)Income before taxes on income and minority interestsin earnings of consolidated subsidiaries

taxes on income (Note 12):Current
DeferredIncome before minority interests
Minority interests in earnings of Consolidated subsidiaries
Net income

4,759

4,497

(324)

(238)

̶

(94)

̶

9,908

2,944

96,269

730

657

7,093

(7,877)(6,286)(76,535)

̶

(2,417)

̶

2,351

—

22,843

̶

(1,343)

̶

(891)

470

(8,658)

8,656(1,810)84,10476,91062,313

747,279

28,594

20,377

277,827

888(4,290)8,628

47,42846,226

460,824

(249)

(47)

(2,419)¥ 47,179¥ 46,179$ 458,405

amounts Per share of Common stock:
Net income
Cash dividends applicable to the year
The accompanying notes are an integral part of these statements.

¥186.90¥182.91$1.82¥ 46.50¥ 45.50

$0.45

2014

¥46,226

1,451

3,099

14,099(1,657)

1,567(16,100)

3,897

4,068

37,864$460,824

0

(0)

0

¥ 3,691¥ 8,734$ 35,863

total Comprehensive income¥51,119¥54,960$496,687

Comprehensive Income attributable to owners of JGC
Corporation¥50,870¥54,913$494,268¥¥    47$

total other Comprehensive income

Comprehensive Income attributable to minority interest
The accompanying notes are an integral part of these statements.

U.S. dollars(Note 1)

Yen

2013

¥47,428

other Comprehensive income (Note 19)
Net unrealized holding gains on securities (Notes 9 & 18)
Deferred gains (losses) on hedges (Note 10)
Translation adjustments
Share of other comprehensive income of affiliates
accounted for using equity method(3,148)

Thousands of
U.S. dollars(Note 1)Millions of yen

2014

income before Minority interests

46,240JGC Group

249

2,419

24
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate GovernanceConsolidated Statements of Changes in Net Assets

Consolidated Statements of Cash FlowsJGC CORPORATION
Years ended March 31, 2014 and 2013

JGC CORPORATION
Years ended March 31, 2014 and 2013

Thousands ofsharesSharesAmount259,053¥23,511

Capitalsurplus Retained earnings¥25,603

Net income for the year

¥255,323

Treasurystock,
at costNet unrealized
holding gains
on securities(Notes 9 & 18)¥(6,257)¥2,319Land
Deferred revaluation, net ofgains (losses)
deferredon hedges
tax portion(Note 10)(Note 14)¥   39¥(6,542)

Foreigncurrencytranslation Remeasurements ofadjustments defined benefit plans Minority interests¥(3,581)Effect of change in scopeof consolidation(9,720)Net unrealized holding
gains on securities

3,099

Net deferred gains
on hedges

1,567Foreign currencytranslation adjustments

2,725

Increase of treasury stock(73)

Net changes during the year
259,053¥23,511¥25,603¥291,782¥(6,330)¥5,418¥ 1,606¥(6,542)¥  487—(78)¥     —¥  54947,179Net income for the yearEffect of change in scopeof consolidation

301

(133)

(11,487)

Cash dividends
Gain on disposal oftreasury stock4

1

Net unrealized holding
gains on securities

1,451Net deferred gains
on hedges(1,657)Foreign currencytranslation adjustments

4,030
(149)

Increase of treasury stockRemeasurements ofdefined benefit plans

(421)
4,679

Net changes during the year

balance at March 31,
2014¥  627

1,343

Cash dividends

balance at March 31
and april 1, 2013¥     —

46,179259,053¥23,511¥25,607¥327,775¥(6,478)¥6,869¥(51)¥(6,542)¥ 4,384¥(421)¥5,228

Thousands of U.S. dollars (Note 1)

Capitalsurplus Retained earnings

Common stockbalance at april 1, 2013

$228,440$248,766$2,835,037

Net income for the year

458,405Effect of change in scopeof consolidation

2,924

Cash dividends

Treasurystock,
at costNet unrealized
holding gains
on securities(Notes 9 & 18)$(61,504)$52,643

Land
Deferred revaluation, net ofgains (losses)
deferredon hedges
tax portion(Note 10)(Note 14)

Foreigncurrencytranslation Remeasurements ofadjustments defined benefit plans Minority interests$ 15,604$ 4,732$(63,564)$      —

(1,292)(111,611)

Gain on disposal oftreasury stock

39

10Net unrealized holding
gains on securities

14,099Net deferred gains
on hedges(16,100)

Foreign currencytranslation adjustments

39,156

Increase of treasury stock(1,448)Remeasurements ofdefined benefit plans(4,091)

Net changes during the year

balance at March 31,
2014$ 5,334

45,463$228,440$248,805

The accompanying notes are an integral part of these statements.

$3,184,755$(62,942)$66,742$(496)$(63,564)$42,596$(4,091)$50,797

Cash Flows from operating activities:	Income before taxes on income and minority interestsin earnings of consolidated subsidiaries	Adjustments to reconcile income before taxes on income
and minority interests in earnings of consolidated subsidiaries
to net cash provided by operating activities:		
Depreciation and amortization		
Amortization of goodwill		
Increase in allowance for doubtful accounts		
Increase (decrease) in reserve for losses on contracts		
Decrease in net defined benefit plans		Interest and dividend income
		Interest expense		Exchange gain		Equity in earnings of affiliates		
Loss (gain) on sales of marketable and investment securities
		
Loss on sales and disposal of property and equipment
		
Loss on impairment of fixed assets		Increase in notes and accounts receivable		
Increase in inventories
		
Decrease (increase) in other assets		Increase in notes and accounts payable		
Increase in advances received on uncompleted contracts
		Other
			 Subtotal		Interest and dividends received
		Interest paid		Income taxes paid
Net Cash Provided by operating activities
Cash Flows from investing activities:
Payments for purchases of property and equipment
Proceeds from sales of property and equipment
Payments for purchase of marketable and investment securities
Proceeds from sales of marketable and investment securities
Other
			 Net Cash used in investing activities
Cash Flows from Financing activities:
Decrease in short-term loans
Proceeds from long-term bank loans
Repayments of long-term bank loans
Payments for purchase of treasury stock
Cash dividends paid
Cash dividends paid to minority shareholders
Other
Net Cash used in Financing activities
effect of exchange rate Changes
on Cash and Cash equivalents
Net increase in Cash and Cash equivalents
Cash and Cash equivalents at beginning of year
increase in Cash and Cash equivalentsfrom Newly Consolidated subsidiaries
Cash and Cash equivalents at end of year (Note 13)
The accompanying notes are an integral part of these statements.

JGC Group

Millions of yen

Thousands of U.S. dollars(Note 1)

2014

2013

2014

¥ 76,910¥ 62,313$ 747,279

9,269

8,264

90,060

0

0

0

1,812

2,222

17,606(1,207)

16,842(11,727)(993)(1,055)(9,648)(4,759)(4,497)(46,240)

Millions of yen
Common stockbalance at april 1, 2012

Financial Section

324

238

3,148

(9,476)(6,403)(92,071)

(730)

(657)

(7,093)

925

(91)

8,988

147

23

1,428

̶

94

̶

(4,043)(8,517)(39,283)(5,003)(5,843)(48,610)(1,888)2,957(18,344)

12,561

8,894

122,046

75,45817,979733,171(3,395)

4,114(32,987)

145,91296,877

1,417,723

5,645

4,947

54,848

(377)

(251)

(3,663)(30,603)(16,563)(297,348)

120,577

85,0101,171,560(6,188)(12,164)(60,124)

469

172

4,557

(5,168)(12,814)(50,214)

368

1,069

3,576

(8,209)(4,634)(79,761)(18,728)(28,371)(181,966)

(685)

(204)

(6,656)

3,406

7,634

33,094(1,407)(987)(13,671)

(143)

(74)

(1,389)(11,484)(9,723)(111,582)

(144)

(124)

(1,399)

(230)

(217)

(2,235)(10,687)(3,695)(103,838)

9,161

9,277

89,011

100,323

62,221

974,767

284,777

222,556

2,766,974

153

—

1,487

¥385,253¥284,777$3,743,228

25
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Notes to Consolidated Financial Statements
Note 1 — Summary of Significant Accounting Policies(a) Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements of JGC Corporation(Nikki Kabushiki Kaisha, the “Company”) and its consolidated subsidiaries
have been prepared in accordance with the provisions set forth in theJapanese Financial Instruments and Exchange Act and its related accounting
regulations, and in conformity with accounting principles generally acceptedin Japan (“Japanese GAAP”), which are different in certain respects as toapplication and disclosure requirements from International Financial
Reporting Standards.
The accounts of consolidated overseas subsidiaries are prepared inaccordance with either International Financial Reporting Standards or U.S.
generally accepted accounting principles, with adjustments for the specified
five items as applicable. The accompanying consolidated financial statements
have been translated into English (with some expanded descriptions) fromthe consolidated financial statements of the Company prepared in accordance with Japanese GAAP and filed with the appropriate Local Finance
Bureau of the Ministry of Finance as required by the Japanese Financial
Instruments and Exchange Act. Certain supplementary information includedin the statutory Japanese language consolidated financial statements, but
not required for fair presentation, is not presented in the accompanying
consolidated financial statements.
In addition, certain reclassifications have been made to present theaccompanying consolidated financial statements in a format which is morefamiliar to readers outside Japan. Furthermore, certain reclassifications ofpreviously reported amounts have been made to reconcile the consolidated
financial statements for the year ended March 31, 2013 to the 2014 presentation.
The translation of the Japanese yen amounts into U.S. dollars is included
solely for the convenience of readers outside Japan, using the prevailingexchange rate at March 31, 2014, which was ¥102.92 to U.S. $1. The
convenience translations should not be construed as representations that
the Japanese yen amounts could be converted into U.S. dollars at this or
any other rate of exchange.
(b) Principle of Consolidation
The consolidated financial statements include the accounts of theCompany and its significant subsidiaries that include less than 50% owned
affiliates controlled through substantial ownership of majority voting rights orexistence of substantial control. All significant inter-company transactions
and account balances are eliminated in consolidation.
Investments in non-consolidated subsidiaries and affiliates over which
the Company has the ability to exercise significant influence over operating
and financial policies of the investees are accounted for by the equity method.
The number of consolidated subsidiaries and affiliates accounted forusing the equity method at March 31, 2014 and 2013 was as follows:
2014

2013

Consolidated subsidiaries

17

17

Affiliates under the equity method22Investments in non-consolidated subsidiaries and affiliates not accounted
for by the equity method are carried at cost, adjusted for any substantial
and non-recoverable decline in value. The effect on net income andretained earnings from those investments not accounted for under theequity method is immaterial.

At the year ended March 31, 2014, a subsidiary, JGC America, Inc., wasincluded in the scope of consolidation because its effect on the consolidated
financial statement became significant and JGC PLANTECH Co., Ltd. was
excluded from the scope of consolidation because the company merged
into JGC Plant Solutions Co., Ltd. (The company name after the merger:
JGC PLANT INNOVATION CO., LTD.) and was liquidated during the period.
At the year ended March 31, 2013, two of subsidiaries, JGC Mirai Solar Co.,
Ltd. and JGC EXPLORATION CANADA LTD., were included in the scope of
consolidation because their effect on the consolidated financial statement
became significant and JGC Corporation Europe B.V. was excluded fromthe scope of consolidation because the company liquidated during the period.
(c) Consolidated Statements of Cash Flows
In preparing the consolidated statements of cash flows, cash on hand,readily available deposits and short-term highly liquid investments withnegligible risk of changes in value, and maturities not exceeding three months
at the time of purchase are considered to be cash and cash equivalents.
(d)	Conversion of Foreign Currencies and Translation of Statements
Receivables and payables denominated in foreign currencies are translated
into Japanese yen at the year-end rates.
Balance sheets of consolidated overseas subsidiaries are translated into
Japanese yen at the year-end rates except for net assets accounts, which
are translated at the historical rates. Income statements of consolidated
overseas subsidiaries are translated at average rates except for transactions
with the Company, which are translated at the rates used by the Company.
(e)	Unification of Accounting Policies Applied to Foreign Subsidiaries
for Consolidated Financial Statements
The Accounting Standards Board of Japan has issued ASBJ Practical Issues
Task Force No. 18 “Practical Solution on Unification of Accounting Policies
Applied to Foreign Subsidiaries for Consolidated Financial Statements”(“PITF No. 18”). PITF No. 18 requires that accounting policies and procedures
applied by a parent company and its subsidiaries to similar transactions andevents under similar circumstances should, in principle, be unified for the
preparation of the consolidated financial statements. PITF No. 18, however,as a tentative measure, allows a parent company to prepare consolidated
financial statements using foreign subsidiaries’ financial statements preparedin accordance with either International Financial Reporting Standards or
U.S. generally accepted accounting principles. In this case, adjustments
for the following five items are required in the consolidation process so that
their impacts on net income are accounted for in accordance with Japanese
GAAP unless the impact is not material.
(1) Goodwill not subjected to amortization(2)	Actuarial gains and losses of defined benefit plans recognized outside
profit or loss(3)	Capitalized expenditures for research and development activities(4)	Fair value measurement of investment properties, and revaluationof property, plant and equipment, and intangible assets(5) Accounting for net income attributable to minority interests(f ) Recently Issued Accounting Standards
On May 17, 2012, the Accounting Standards Board of Japan issued ASBJ
Statement No. 26 “Accounting Standard for Retirement Benefits” and ASBJ
Guidance No. 25, “Guidance on Accounting Standard for Retirement
Benefits”, which replaced the Accounting Standard for Retirement Benefits

that was issued by the Business Accounting Council in 1998 with effective
date of April 1, 2000 and other related practical guidance.
(1) Outline
	This accounting standard and guidance have been revised mainly interms of accounting methods of unrecognized actuarial differences andpast service costs, the calculation methods of projected retirement
benefit obligations and service costs, and the improvement of disclosure, from the perspective of improving financial statements and in lightof current international trends.
(2) Scheduled date of adoption
	The calculation methods of projected retirement benefit obligations andservice costs are scheduled to be applied from April 1, 2014.
(3)	Impact of adoption of this accounting standard and guidance	In preparing the consolidated financial statements, the impact on thefinancial statements as a result of the adoption is currently being evaluated.
(g) Allowance for Doubtful Accounts
Notes and accounts receivable, including loans and other receivables,
are valued by providing for individually estimated uncollectible amounts
plus the amounts for probable losses calculated by applying a percentage
based on collection experience to the remaining accounts.
In Other Assets, the amount of Allowance for Doubtful Accounts isdeducted from long-term loans receivable and other.
(h)	Marketable Securities, Investments in Unconsolidated Subsidiaries
and Affiliates, and Marketable and Investment Securities
The company and its consolidated subsidiaries are required to examine
the intent of holding each security and classify those securities as(1) securities held for trading purposes, (2) debt securities intended to beheld to maturities, (3) equity securities issued by subsidiaries and affiliates,and (4) all other securities that are not classified in any of the above categories (hereafter, “available-for-sale securities”). The Company and its consolidated subsidiaries did not have the securities defined as (1) and (2)above in the years ended March 31, 2014 and 2013.
Available-for-sale securities with available fair market values are stated
at fair market value. Unrealized gains and losses on these securities arereported, net of applicable income taxes, as a separate component of net
assets. Realized gains and losses on the sale of such securities are computed using the moving-average method. Other securities with no available fair market value are stated at moving-average cost. Equity securities
issued by subsidiaries and affiliates, which are not consolidated or
accounted for using the equity method, are stated at moving-average cost.
If the market value of available-for-sale securities declines significantly,
such securities are restated at fair market value and the difference between
fair market value and the carrying amount is recognized as loss in the
period of decline (See Note 9). For equity securities with no available fairmarket value, if the net asset value of the investee declines significantly,
such securities are required to be written down to the net asset value withthe corresponding losses in the period of decline. In these cases, such fairmarket value or the net asset value will be the carrying amount of the securities at the beginning of the next year.

(i) Allowance for Losses on Investment
To prepare for estimated losses to be incurred in the future, allowance forlosses on investment is stated in amounts considered to be appropriate
based on financial condition of investments. In Other Assets, the amount of
Allowance for Losses on Investment is deducted from investments in unconsolidated subsidiaries and affiliates and marketable and investment securities.
(j) Provision for Losses on Guarantees
To provide for losses on guarantees, the Company makes a provision forpotential losses at the end of the fiscal year.
(k)	Recognition of Sales, Contract Works in Progress
and Advances Received on Uncompleted Contracts
Sales on contracts for relatively large projects, which require long periods
for completion and which generally include engineering, procurement(components, parts, etc.) and construction on a full-turnkey basis, are r
ecognized on the percentage-of-completion method, primarily based oncontract costs incurred to date compared with total estimated costs forcontract completion.
Contract works in progress are stated at cost determined by a specificidentification method and comprised of direct materials, components andparts, direct labor, subcontractors’ fees and other items directly attributable
to the contract, and job-related overheads. Selling, general and administrative expenses are charged to operations as incurred and are not allocatedto contract job work costs.
The Company normally receives payments from customers on a progressbasis in accordance with the terms of the respective construction contracts.
(l) Inventories
Inventories of the Company and its consolidated subsidiaries are stated atcost determined using the moving-average method (which writes off thebook value of inventories based on decreases in profitability) except forcontract works in progress as stated in Note 1(k).
(m) Operating Cycle
Assets and liabilities related to long-term contract jobs are included in current assets and current liabilities in the accompanying consolidated balance sheets, as they will be liquidated in the normal course of contract
completion, although it may require more than one year.
(n) Property and Equipment, Depreciation and Finance Leases
Property and equipment are stated at cost, except for certain revalued
land as explained in Note 14. Depreciation of property and equipment iscalculated primarily using the straight-line method for buildings used forbusiness operation, and the declining-balance method for other property
and equipment over the estimated useful lives of the assets based on the
Corporate Tax Code of Japan.
Effective as of the consolidated accounting period ended March 31,
2013, the Company and its domestic subsidiaries have changed theirdepreciation procedure based on an amendment in corporation tax law for
the tangible assets acquired on and after April 1, 2012. The effect of thischange on the financial statement result is immaterial.
All finance leasing transactions were capitalized except for financeleases which commenced prior to April 1, 2008 and have been accounted
for as operating leases, and continue to be accounted for as operatingleases with disclosure of “as if capitalized” information.

26
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Notes to Consolidated Financial Statements

Expenditures for new facilities and those that substantially increase theuseful lives of existing property and equipment are capitalized. Maintenance,
repair and minor renewals are charged to expenses as incurred.
The cost and accumulated depreciation applicable to assets retired orotherwise disposed of are eliminated from the related accounts and thegain or loss on disposal is credited or charged to income.
(o) Impairment of Fixed Assets
The Company and its consolidated subsidiaries review their long-lived assets
for impairment whenever events or changes in circumstances indicate thecarrying amount of an asset or asset group may not be recoverable. An
impairment loss would be recognized if the carrying amount of an asset or
asset group exceeds the sum of the undiscounted future cash flows expected
to result from the continued use and eventual disposition of the asset or
asset group. The impairment loss would be measured as the amount bywhich the carrying amount of the asset exceeds its recoverable amount,which is the higher of the discounted cash flows from the continued use
and eventual disposition of the asset or the net selling price at disposition.
(p) Retirement and Severance Benefits and Pension Costs(1) Employees’ severance and retirement benefits	The Company and its consolidated subsidiaries provide two types ofpost-employment benefit plans, unfunded lump-sum payment plans
and funded non-contributory pension plans, under which all eligible
employees are entitled to benefits based on the level of wages andsalaries at the time of retirement or termination, length of service andcertain other factors.
		 Certain consolidated subsidiaries also have a defined contribution
pension plan, which was transferred from a portion of defined benefit
pension plan.
		 The Company and its consolidated subsidiaries provided allowancefor employees’ severance and retirement benefits at March 31, 2014
and 2013, based on the estimated amounts of projected benefit obligation, actuarially calculated using certain assumptions and the fairvalue of the plan assets at that date.
		 The estimated amount of all retirement benefits to be paid at the
future retirement date is allocated equally to each service year using
the estimated number of total service years.
		 The Company and its consolidated subsidiaries recognize prior service
costs as expenses in equal amounts over the average of the estimatedremaining service lives of the employees, and actuarial gains and losses
as expenses using the declining-balance method over the average of theestimated remaining service lives commencing in the following period.
		 However, one consolidated subsidiary recognized prior service
costs and actuarial differences as expenses in the period incurred.
		 On July 1, 2013, one consolidated domestic subsidiary transferred its
employees’ severance and retirement benefits to the defined contribution pension plan. The transfer is accounted for in accordance with the“Guidance on Accounting Standard for Transfer between Retirement
Benefit Plans” (Accounting Standards Board of Japan Guidance No.
1) and “Practical Solution on Accounting Standards for Transfer
between Retirement Benefit Plans” (PITF No. 2). The effect of thesechanges on the financial statement result is immaterial.
		 Effective from March 31, 2014, the Company and its consolidated
domestic subsidiaries have applied the Accounting Standard for
Retirement Benefits (ASBJ Statement No. 26, May 17, 2012 (hereinafter,
the “Statement No. 26”)) and Guidance on Accounting Standard for

Retirement Benefits (ASBJ Guidance No. 25, May 17, 2012 (hereinafter,
the “Guidance No. 25”)) except the article 35 of the Statement No. 26
and the article 67 of the Guidance No. 25 and actuarial gains and losses
and past service costs that are yet to be recognized have been recognized and the difference between retirement benefit obligations andplan assets has been recognized as a liability for retirement benefits.
		 In accordance with the article 37 of the Statement No. 26, the effectof the change in accounting policies arising from initial application has
been recognized in remeasurements of defined benefit plans in accumulated other comprehensive income (Loss).
		 As a result of the application, net defined benefit liability in the amountof ¥601 million ($5,839 thousand) has been recognized, deferred tax
assets has increased by ¥213 million ($2,070 thousand) and accumulated other comprehensive income has decreased by ¥393 million($3,818 thousand), respectively, at the year ended March 31, 2014.
(2) Officers’ severance and retirement benefits	Consolidated domestic subsidiaries provide for liabilities in respect of
lump-sum severance and retirement benefits to directors and corporate
statutory auditors computed on the assumption that all officers retired
at a year-end.
(q) Research and Development Costs
Research and development costs for the improvement of existing skills
and technologies or the development of new skills and technologies,
including basic research and fundamental development costs, are charged
to operations in the period incurred. The total amount of research anddevelopment expenses, included in Cost of Sales and Selling, General and
Administrative expenses, was ¥3,960 million ($38,476 thousand) and¥4,527 million, respectively, in 2014 and 2013.
(r) Taxes on Income
The Company and its consolidated subsidiaries provide tax effects of
temporary differences between the carrying amounts and the tax basis ofassets and liabilities. The asset and liability approach is used to recognize
deferred tax assets and liabilities for the expected future tax consequencesof temporary differences.
(s) Reserve for Job Warranty Costs
A reserve for the estimated cost of warranty obligations is provided for
the Company’s engineering, procurement and construction work at thetime the related sales on contracts are recorded.
(t) Reserve for Losses on Contracts
A reserve for losses on contracts is provided for an estimated amount ofprobable losses to be incurred in future years in respect of construction
projects in progress.
(u) Per Share Information
Cash dividends per share have been presented on an accrual basis
and include dividends to be approved after the balance sheet date but
applicable to the year then ended.
(v) Amortization of Goodwill
Goodwill is amortized over five years on a straight-line basis.

(w) Derivatives Transactions and Hedge Accounting
The accounting standard for financial instruments requires companies tostate derivative financial instruments at fair value and to recognize changes
in the fair value as gains or losses unless the derivative financial instruments
are used for hedging purposes.
If derivative financial instruments are used as hedges and meet certain
hedging criteria, the Company and its consolidated domestic subsidiaries
defer recognition of gains or losses resulting from changes in fair value ofderivative financial instruments until the related losses or gains on thehedged items are recognized.
However, in cases where foreign exchange forward contracts are usedas hedges and meet certain hedging criteria, foreign exchange forward
contracts and hedged items are accounted for in the following manner(Allocation Method):(1)	If a foreign exchange forward contract is executed to hedge an existing
foreign currency receivable or payable,(i)	The difference, if any, between the Japanese yen amount of thehedged foreign currency receivable or payable translated using the
spot rate at the inception date of the contract and the book value ofthe receivable or payable is recognized in the statement of incomein the period which includes the inception date, and(ii)	The discount or premium on the contract (that is, the difference
between the Japanese yen amount of the contract translated using
the contracted forward rate and that translated using the spot rate
at the inception date of the contract) is recognized over the term of
the contract.

Note 3 — Borrowings and Assets Pledged as Collateral
Short-term loans consisted mainly of unsecured notes and bank overdrafts
and bore interest at the annual rates of 0.72% and 0.70% at March 31,
2014 and 2013, respectively. Such loans are generally renewable at maturity.
Long-term debt consisted of the following:(2)	If a foreign exchange forward contract is executed to hedge a futuretransaction denominated in a foreign currency, the future transaction
will be recorded using the contracted forward rate, and no gains orlosses on the foreign exchange forward contract are recognized.

Buildings and structures,at net book value

2,239

3,087

21,755Machinery and equipment,
at net book value

5,873

2,025

57,064

Cash and deposits

1,039

256

10,094

Also, where interest rate swap contracts are used as hedges and meetcertain hedging criteria, the net amount to be paid or received under theinterest rate swap contract is added to or deducted from the interest on
the liabilities for which the swap contract was executed (Special method
for interest rate swap).
(x) Accrued Bonuses to Directors and Corporate Auditors
The Company and consolidated subsidiaries recognize directors’ and corporate auditors’ bonuses as expenses when incurred.

Thousands of
U.S. dollars(Note 1)Millions of yen

March 31,
1.40% loans from banks
due serially through 2029

Thousands of
U.S. dollars(Note 1)Millions of yen

March 31,
Notes and accounts receivable
Other current assets
Long-term loans receivable
Notes and accounts payable
Other current liabilities
Other non-current liabilities

2014
¥ 822
2,152
1,000
537
583
10

2013
¥  786
2,063
1,350
774
135
11

2014
$ 7,987
20,909
9,716
5,218
5,665
97

2013

2014

¥ 5,509¥ 4,460$ 53,527

8,217

10,812

79,83913,726

15,272

133,366

unsecured Debt
0.35% – 1.75% loans frombanks and insurance companies
due serially through 2023

(725)

(5,909)(7,045)¥13,001¥ 9,363$126,321

Less current maturities
Long-term debt due after one year

Assets pledged as collateral for short-term loans, long-term debt andother non-current liabilities at March 31, 2014 were as follows:
Thousands of
U.S. dollars(Note 1)Millions of yen

March 31,2014
¥ 4,280

Land

Total

¥13,431

2013

2014

¥ 5,071 $ 41,586¥10,439 $130,499

No borrowing was outstanding for the following assets pledged ascollateral as of March 31, 2014.
Thousands of
U.S. dollars(Note 1)Millions of yen

March 31,

2014

2014

Land

¥ 791

$ 7,686Buildings and structures, at net book value

993

9,648

Machinery and equipment, at net book value

2,254

21,900¥4,038$39,234

Total

Note 2 — R eceivables from and Payables to Unconsolidated Subsidiaries and Affiliates
Significant receivables from and payables to unconsolidated subsidiaries
and affiliates at March 31, 2014 and 2013 were as follows:

2014

secured Loans

The annual maturities of long-term debt outstanding at March 31,
2014 were as follows:
AmountYear ending March 31,

Thousands of
U.S. dollars(Note 1)Millions of yen

2015¥   725$  7,045

2016

847

8,229

2017

765

7,433

2018

836

8,123

2019 and thereafter
Total

10,553

102,536¥13,726$133,366

27
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Notes to Consolidated Financial Statements

Note 4 — Inventories
Inventories at March 31, 2014 and 2013 were summarized as follows:
Thousands of
U.S. dollars(Note 1)Millions of yen

March 31,

(4) Calculation method of depreciation equivalents
Depreciation equivalents are computed by the straight-line method overthe lease period without considering residual value.

(2) Movement in plan assets
March 31, 2014(b) Operating Lease Transactions

Balance at April 1, 2013

Lease commitments under non-cancelable operating leases:

Expected return on plan assets

2014

2013

2014

¥41,007¥35,840$398,436

Finished goods and merchandise

4,204

4,514

40,847

March 31,

2014

2013

2014

Works in process

1,676

1,912

16,285

Due within one year

¥294

¥399

$2,857

Due after one year

Thousands of
U.S. dollars(Note 1)Millions of yen

Inventories:
Contract works in progress

Raw materials and others
		

Total

2,598

2,119

25,243¥49,485¥44,385$480,811

Total

Note 5 — Lease Transactions
A. Lessee Leases

B. Lessor Leases(a)	Finance Lease Transactions Without Ownership Transfer to Lessee(1) Details of investment in leased assets

Thousands of
U.S. dollars(Note 1)Millions of yen

2014

2013

2014

Machinery and equipment and others:
Purchase price equivalents

¥ 469

¥ 498

	Accumulated depreciationequivalents

(389)

(361)

Book value equivalents

¥ 80

¥ 137

$ 4,557

777(2) Lease commitments
Thousands of
U.S. dollars(Note 1)Millions of yen

March 31,

2014

2013

2014

Due within one year

¥45

¥ 56

$437

Due after one year

35

81

340

¥80

¥137

$777

Lease commitments as lessee are calculated using the inclusive-ofinterest method.

Thousands of
U.S. dollars(Note 1)

2014

2014

2013

2014

Lease payment receivable

¥103

¥61

$1,001

Estimated residual value

1

—

10

Interest income

̶

—

̶

¥104

¥61

$1,011(2) The investment in leased assets due in each of the next five years at
March 31, 2014 was as follows:

2013

Year ending March 31,

Thousands of
U.S. dollars(Note 1)Millions of yen

2015

¥ 27

$  262

2016

27

262

2017

25

243

2018

20

195

2019

4

39

¥103

$1,001

Total

Note 6 — Defined Benefit Liability
The significant components of the pension plans as of and for the year
ended March 31, 2014 were summarized as follows:

2,898

28,158(2,000)(19,433)51

496¥33,686$327,303

Other
Balance at March 31, 2014

Thousands of
U.S. dollars(Note 1)Millions of yen

Funded retirement benefit obligations¥34,810$338,224

Plan assets(33,686)(327,303)

Unfunded retirement benefit obligations
Allowance for officers’ lump-sum severance benefitsTotal net defined benefit liability at March 31, 2014

1,124

10,921

10,312

100,194

289

2,808

¥11,725$113,923

Liability for retirement benefits

11,725

113,923Total net defined benefit liability at March 31, 2014

¥11,725$113,923(7) Actuarial assumptions
The principal actuarial assumptions at March 31, 2014 were as follows:
Discount rate

1.5%

Long-term expected rate of return

1.5%(b) Defined Contribution Pension Plan
The Company’s contributions were ¥209 million ($2,031 thousand) for theyear ended March 31, 2014.
The disclosure of corresponding information for the year ended March 31,
2013 was not required under the accounting standard for presentation as
an exemption for the first year of adopting that standard. Under the former
accounting standard, the liabilities for employees’ severance and retirement
benefits included in net defined benefit liability in the liability section of theconsolidated balance sheet as of March 31, 2013 consisted of the following:
March 31, 2013

March 31, 2014
Service costThousands of
U.S. dollars(Note 1)Millions of yen¥1,808$17,567¥ 44,180

Less fair value of pension assets(30,740)

Unfunded projected benefit obligations
Unrecognized actuarial differences

6,539

March 31, 2013

Net actuarial loss amortization

161

1,565

Service cost–benefits earned during the year

Past service cost amortization(177)(1,720)Interest cost on projected benefit obligation

666

Expected return on plan assets(392)

Total retirement benefit expenses
for the year ended March 31, 2014

Past service costs that are yet to be recognized
Total balance at March 31, 2014

¥44,180$429,266

1,808

17,567(6) Plan assets

Interest cost

673

6,539

Components of plan assets

March 31, 2014

1,026

9,969
(26,934)

Lease payments

¥56

¥59

$544

Depreciation equivalents

56

59

544

Past service costs

84

816

Other

123

1,195

¥45,122$438,418

Included in the consolidated statements of income for the year ended
March 31, 2013 were retirement benefit expenses comprising the following:(4,363)Service cost

(2,772)271¥ 12,627

673

Actuarial losses that are yet to be recognized

Benefits paid

Net defined benefit liability

835
12,356(449)

March 31, 2014

Actuarial loss		

(1,919)

Expected return on plan assets(1) Movement in retirement benefit obligations

2014

Allowance for officers’ lump-sum severance benefits

13,440Interest cost

¥2,016$19,588(5) Remeasurements of defined benefit plans

Thousands of
U.S. dollars(Note 1)Millions of yen

Millions of yen

Projected benefit obligations

Net liability for employees’ severance and retirement benefits(4) Retirement benefit expenses(a) Defined Benefit Plan

Balance at March 31, 2014

15,041

Current and target asset allocations and historical and expected returns on
various categories of plan assets have been considered in determining thelong-term expected rate of return.

Unrecognized prior service costs

AmountBalance at April 1, 2013

4,363

1,548

Benefits paid

March 31, 2014

March 31,

Book value$298,678

449(3)	Reconciliation from retirement benefit obligations and plan assets to
net defined benefit liability

Thousands of
U.S. dollars(Note 1)Millions of yen

March 31, 2014

(3) Lease payments and depreciation equivalents

Year ended March 31,

3,284$6,141(3,780)$Purchase price equivalents are calculated using the inclusive-ofinterest method.

Total

202
¥601

¥30,740

Contributions paid by the employer(a)	Finance Lease Transactions Without Ownership Transfer to Lessee

Finance leases commenced prior to April 1, 2008 which do not transfer
ownership of leased assets to lessees are accounted for as operating leases.
Assumed amounts of acquisition cost and accumulated depreciation atMarch 31, 2014 and 2013, were as follows:(1) Purchase price equivalents, accumulated depreciation equivalents,
and book value equivalents

March 31,

338
¥632

Actuarial gain

Long-term expected rate of return
Thousands of
U.S. dollars(Note 1)Millions of yen

Thousands of
U.S. dollars(Note 1)Millions of yen¥(1,246)$(12,106)

598

5,810

¥ (648)$ (6,296)

Bonds

71%

Equity securities

18

Cash and cash equivalents

1

Other

10

Total

100%

Amortization of net transition obligation

Millions of yen¥1,748

3

Amortization of actuarial differences

766

Amortization of prior service cost

(223)

Contribution for defined contribution pension plan
Retirement benefit expenses

145¥2,713The discount rates used by the Company and its consolidated domestic
subsidiaries were 1.43%–1.5% at March 31, 2013. However, one consolidated overseas subsidiary used the rate of 5.7% at March 31, 2013. The rateof expected return on plan assets used by the Company and its consolidated
domestic subsidiaries was 1.5% for March 31, 2013. However, one consolidated overseas subsidiary used the rate of 5.0% at March 31, 2013.
Actuarial differences are recognized in the consolidated statement ofincome using the declining-balance method over 12 to 15 years for theyear ended March 31, 2013, beginning the following fiscal year of recognition. Prior service costs are recognized using the straight-line method
over 12 to 15 years for the year ended March 31, 2013, from the year
incurred. Net transition obligation is amortized over 15 years.

28
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Environmental Activities andContribution to Society

Competitive Advantages

Corporate Governance

Financial Section

JGC Group

Notes to Consolidated Financial Statements

Note 7 — Contingencies(1)	It is a business practice in Japan for a company to guarantee theindebtedness of certain of its trading agents, suppliers, subcontractors
and certain subsidiaries and affiliates. The aggregate amount of suchguarantees was ¥31,184 million ($302,993 thousand) and ¥14,695
million at March 31, 2014 and 2013, respectively.

(a)	Available-for-Sale Securities with No Available Fair Values:
Thousands of
U.S. dollars(Note 1)Millions of yen

March 31,
Non-listed equity securities

2014

2013

2014

¥23,305¥23,505$226,438

38

38

369

31,05325,000301,720¥54,396¥48,543$528,527

Subscription certificate(2)	The Company and one consolidated subsidiary have guaranteed
employees’ housing loans and others from banks in the amount of¥9 million ($87 thousand) and ¥7 million at March 31, 2014 and2013, respectively.

Note 8 — Net Assets
Dividends
At the annual shareholders’ meeting of the Company held on June 27, 2014,
the shareholders approved cash dividends amounting to ¥11,737 million($114,040 thousand). Such appropriations have not been accrued in the
consolidated financial statements as of March 31, 2014. Such appropriations
are recognized in the period in which they are approved by the shareholders.

Negotiable certificate of deposit
Total(b) Unconsolidated Subsidiaries and Affiliates:
Thousands of
U.S. dollars(Note 1)Millions of yen

March 31,

2013

2014

2014

Securities of unconsolidated
subsidiaries¥ 2,871¥ 2,648$ 27,895

Securities of affiliates

25,89730,676

251,623¥28,768¥33,324$279,518

Total

The Company utilizes foreign currency forward contracts and interest rate
swap contracts as derivative financial instruments only for the purpose of
mitigating future risks of fluctuation of foreign currency exchange rates
with respect to foreign currency receivable and payable and mitigating futurerisks of interest rate increases and lowering the financing costs withrespect to borrowings.
Foreign currency forward contracts and interest rate swap contracts
are subject to risks of foreign exchange rate changes and interest ratechanges, respectively.
The derivative transactions are executed and managed in accordancewith the established policies and within the specified limit on the amountsof derivative transactions allowed.
The following summarizes hedging derivative financial instruments usedby the Company and hedged items:
Hedging instruments:

March 31, 2014
Negotiable certificate
of deposit

Available-for-Sale Securities with Available Fair Values:(1) Securities with book values exceeding acquisition costs:¥31,053

¥̶

¥̶

Over
ten years

¥̶

Total

¥31,053

Millions of yen
Millions of yen

March 31, 2014

Acquisition cost

Book value

Difference

Equity securities¥10,549¥20,976¥10,427
Millions of yen

March 31, 2013

Acquisition cost

Book value

Difference

Equity securities¥10,501¥18,986¥8,485

March 31, 2013
Negotiable certificate
of deposit

Over
Over
one year butfive years but
Within within five
within ten
one year
years
years

¥25,000

Equity securities

Acquisition cost

$102,497

Book value$203,809

Difference$101,312(2) Securities with book values not exceeding acquisition costs:
Millions of yen

March 31, 2014

Acquisition cost

Book value

Difference

Equity securities¥2,355¥2,008¥(347)
Millions of yen

March 31, 2013

Acquisition cost

Book value

Difference

Equity securities¥2,407¥2,049¥(358)

Thousands of U.S. dollars (Note 1)

March 31, 2014

Acquisition cost

Book value

Difference

Equity securities$22,882$19,510$(3,372)

B.	The following tables summarize book values of securities with no available fair values or securities not valued by fair market prices as ofMarch 31, 2014 and 2013.

¥—

Total

¥—

¥25,000

Thousands of U.S. dollars (Note 1)

Thousands of U.S. dollars (Note 1)

March 31, 2014

¥—

Over
ten years

March 31, 2014
Negotiable certificate
of deposit

Withinone year$301,720

OverOver
one year butfive years but
within five
within ten
years
years

$̶

$̶

Over
ten years

Total$488,545$̶ $488,545$(1,341)$1,681

Sell Euro$ 21,444$̶ $ 21,444$ (768)$ (768)Fair value of forward exchange contracts is stated based on the quoted
price from banks.
(b)	Fair Value of Derivative Financial Instruments Designated as Hedging Instruments
Fair value of derivative financial instruments designated as hedging
instruments as of March 31, 2014 and 2013 is summarized as follows:
Millions of yen

contractspayable and future transactions

Accounting
Methoddenominated in a foreign currency
Foreign currency depositAllocation
method(Note 1(w))

Foreign currency trade receivable,

Interest rate swap contracts

Interest on loans payable

The Company evaluates hedge effectiveness semi-annually by comparing
the cumulative changes in cash flows from or the changes in fair value ofhedged items and the corresponding changes in the hedging derivative
instruments. However, where the principal conditions underlying the hedging
instruments and the hedged assets or liabilities are similar, the evaluationof hedge effectiveness is not performed.
The Company’s financial instrument counter-parties are all prime bankswith high ratings, and the Company does not expect non-performance by
the counter-parties.
(a) Fair Value of Undesignated Derivative Financial Instruments
Fair value of undesignated derivative financial instruments as of March 31,
2014 and 2013 is summarized as follows:
Millions of yen
Contract amounts

The Company and its consolidated domestic subsidiaries follow a policyof devaluation of available-for-sale securities. The policy of devaluation for
the Company and its consolidated domestic subsidiaries is that if the available
fair value of the securities declines by 50% or more, compared with acquisition cost, all the corresponding securities are devalued as such decline isconsidered to be substantial and non-recoverable in value. In addition, in thecase whereby the available fair value of the securities declines by more than
30% but by less than 50%, the Company and its consolidated domestic
subsidiaries examine the recoverability of the fair value of the securities anddevaluate if those securities are considered to be non-recoverable.

March 31, 2014

Note 10 — Derivatives Transactions and Hedge Accounting
As explained in Note 1(w), the accounting standard for financial instruments
requires companies to state derivative financial instruments at fair value andto recognize changes in the fair value as gains or losses unless derivative
financial instruments are used for hedging purposes.

Forward exchange
contracts

Due withinDue after one
one year
year

Total

Fair value

Profit or loss
evaluation

Forward exchange
contractsPrincipal
method(Note 1(w))

HedgedInstruments

HedgedItem

Forward exchange
contracts
Buy U.S. dollars Accounts
payableInterest rate swap
contracts
Receive variable Long-term
rate and Pay
debt
fixed rate swap

Contract Portion overamounts
one year

Fair value¥2,321¥1,646¥ 79¥5,606¥5,606¥(147)

Contract amounts

March 31, 2013
Accounting
MethodAllocation
method(Note 1(w))
Principal
method(Note 1(w))

HedgedInstruments

HedgedItem

Forward exchange
contracts
Sell Euro
Accounts
receivable
Buy Euro
Accounts
payableInterest rate swap contracts
Receive variable Long-term
rate and Pay
debt
fixed rate swap

Contract Portion overamounts
one year

Fair value¥ 2,478¥    —¥ (437)¥12,630¥   607¥3,028¥ 5,771¥5,301*

Fair value of forward exchange contracts is stated based on the quoted
price from banks.
* The fair value of the interest rate swap was included in long term debt.
Thousands of U.S. dollars (Note 1)¥50,281¥̶

¥50,281¥(138)¥173

March 31, 2014

Sell Euro¥ 2,207¥̶¥ 2,207¥ (79)¥ (79)

Accounting
MethodMillions of yen
Contract amounts
Due withinDue after one
one year
year

Total

Fair value

Profit or loss
evaluation

Forward exchange
contracts
Sell U.S. dollars

Contract amounts

Millions of yen

Sell U.S. dollars

March 31, 2013

Profit or loss
evaluation

Sell U.S. dollars

March 31, 2014$̶ $301,720

Fair valueForward exchange
contracts

Foreign currency trade receivable,

denominated in a foreign currency

Over
Over
one year butfive years but
Within within five
within ten
one year
years
years

Total

Hedged items:(c) Available-for-Sale Securities with Maturities:
Millions of yen

Due withinDue after one
one yearyear

March 31, 2014

Foreign currency forward

payable and future transactions

Note 9 — Information on Securities
A.	The following tables summarize acquisition costs and book values
stated at the fair value of securities with available fair values as ofMarch 31, 2014 and 2013.

Thousands of U.S. dollars (Note 1)
Contract amounts¥23,827¥—¥23,827¥(741)¥(741)

Buy Chinese Yuan

521

—

521

17

17

Buy U.S. dollars

289

—

289

(2)

(2)

Allocation
method(Note 1(w))
Principal
method(Note 1(w))

Contract amounts
HedgedInstruments

HedgedItem

Forward exchange
contracts
Buy U.S. dollars Accounts
payableInterest rate swap
contracts
Receive variable Long-term
rate and Pay
debt
fixed rate swap

Contract Portion overamounts
one year

Fair value$22,551$15,993 $768$54,469$54,469 $(1,428)

29
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Notes to Consolidated Financial Statements

Note 11 — Segment Information(a) Overview of Reported Segments
The reported segments of the Company are those units for which separate
financial statements can be obtained among the constituent units of theCompany and regularly examined by Chief Executive Officer (CEO) for
decisions on the allocation of management resources and for assessing
business performance. The operations of the Company and its consolidated
subsidiaries are classified into two reportable segments: the total engineeringbusiness and the catalysts and fine products business.
Major activities included in the total engineering business are design,
procurement, construction and performance test services of machinery andplants for petroleum, petroleum refining, petrochemicals, gas, chemicals,
nuclear energy, metal refining, biochemical, food, pharmaceuticals, medical,
logistics, information technology, environment conservation and pollution
control. Major activities in the catalysts and fine products business include
manufacturing and distribution of chemical and catalyst products (FCC
catalysts, hydrotreating catalysts, deNOx catalysts, petrochemical catalysts,etc.) and new functional material products (colloidal silica, coating materials
for surface treatment on cathode ray tubes, material for semiconductors,
cathode materials and cosmetic products, etc.).

The following was information about sales and profit or loss by reported segments for the years ended March 31, 2014 and 2013:
Millions of yen
Reported Segment

year ended March 31, 2014

Total engineering

Catalysts andfine products

Sub-Total

Other

Total

¥624,807¥37,165¥661,972¥13,849¥675,821

Net sales:
External customers
Inter-segment
		TotalSegment profit
Segment assets
Depreciation and amortization
Capital expenditures

Adjustment

Consolidated

̶¥675,821

¥

221

18

239

4,658

4,897

(4,897)

̶¥625,028¥37,183¥662,211¥18,507¥680,718¥ (4,897)¥675,821¥ 62,327¥ 4,209¥ 66,536¥ 1,684¥ 68,220¥¥ 68,254¥661,536¥38,586¥700,122¥60,763¥760,885¥(14,782)¥746,103¥

4,199¥ 2,043¥

6,242¥ 2,992

¥

9,234

¥

35

¥

9,269

¥

2,573

¥ 1,391¥

3,964¥ 5,717

¥

9,681

¥

(43)

¥

9,638

34

Millions of yen
Reported Segment

Year ended March 31, 2013

Total engineering

Catalysts andfine products

Sub-Total

Other

Total

Adjustment

Consolidated¥576,627¥38,508¥615,135¥ 9,502¥624,637¥    —¥624,637

Net sales:
External customers
Inter-segment
		TotalSegment profit
Segment assets
Depreciation and amortization
Capital expenditures

30

166

196

4,906

5,102

(5,102)—¥576,657¥38,674¥615,331¥14,408¥629,739¥ (5,102)¥624,637¥ 58,874¥ 4,291¥ 63,165¥   973¥ 64,138¥    (15)¥ 64,123¥559,836¥37,287¥597,123¥50,656¥647,779¥(19,021)¥628,758¥  4,574¥ 2,480¥  7,054¥ 1,183¥  8,237¥     27¥  8,264¥  5,470¥ 2,024¥  7,494¥ 8,782¥ 16,276¥    (53)¥ 16,223

Thousands of U.S. dollars (Note 1)
Reported Segment

year ended March 31, 2014

Net sales:
External customers
Inter-segment
		TotalSegment profit
Segment assets
Depreciation and amortization
Capital expenditures

Total engineering

Catalysts andfine products

Sub-Total

Other

Total

$6,070,802$361,106$6,431,908$134,561$6,566,469$

Adjustment

Consolidated

̶$6,566,469(b) Related Information
I. Information by Geography

III. Information on Impairment Loss
This information is not disclosed, as this is immaterial for the years ended
March 31, 2014 and 2013.

(1) Net Sales
Millions of yen

Year ended March 31,

Thousands of
U.S. dollars(Note 1)

2014

2013

2014

Japan

¥113,338¥146,326$1,101,224

East and Southeast Asia

129,914

74,293

1,262,282

Middle East

143,524

204,900

1,394,520

Africa44,69934,673434,308

Oceania

215,557

140,320

2,094,413

Other

28,78924,125

279,722

Total¥675,821¥624,637$6,566,469*1. Net sales are classified by the place of customers’ address.
*2.	Middle East includes the State of Qatar ¥69,911 million ($679,275 thousand) and¥105,450 million for the years ended March 31, 2014 and 2013, respectively.
*3.	Oceania includes Australia ¥187,258 million ($1,819,452 thousand) and ¥98,129 million forthe years ended March 31, 2014 and 2013, respectively.

(2) Property and equipment
The following is information on property and equipment for the years
ended March 31, 2014 and 2013:
Millions of yen

Thousands of
U.S. dollars(Note 1)

2014

2013

2014

Japan

¥59,908¥61,527$582,083

Other

10,383

10,181

100,884

Total¥70,291¥71,708$682,967

Year ended March 31,

II. Information by Major Customers
The following is information on major customers which account for 10%
or more of the net sales on the consolidated statements of income for theyears ended March 31, 2014 and 2013:

year ended March 31, 2014

Thousands of
U.S. dollars(Note 1)Millions of yen

Ichthys LNG Pty Ltd¥149,418 $1,451,788 total engineering

Ras Laffan Liquefied Natural Gas
Company Limited.

69,880Related segments

678,974 total engineeringYear ended March 31, 2013

Millions of yen

Related segments

Ras Laffan Liquefied Natural
Gas Company Limited.

¥104,621

Total engineering

68,903

Total engineering

IV. Information on Amortization of Goodwill and Amortized BalanceThis information is not disclosed, as this is immaterial for the years ended
March 31, 2014 and 2013.

Note 12 — Taxes on Income
The statutory tax rates are 38.0% for the years ended March 31, 2014
and 2013.
(1) The following table summarizes the significant differences between thestatutory tax rate and the Company’s and its consolidated subsidiaries’
effective tax rate for financial statement purposes for the years ended
March 31, 2014 and 2013:
Statutory tax rate
Non-deductible expenses
Non-taxable dividend income
Tax credit utilized
Other

Effective tax rate

1.0
(1.1)
(0.6)
(11.5)

25.8%

Thousands of
U.S. dollars(Note 1)Millions of yen

March 31,

2014

2013

2014

¥ 2,465¥ 2,606$ 23,950

Current deferred taxes
Deferred tax assets:		

Accrued employees’ bonuses

		
costs

Reserve for job warranty

751

667

7,297

		
Reserve for losses oncontracts

7,054

7,926

68,539		Other

5,297

5,024

51,467

			Total current deferred
tax assets

15,567

16,223

151,253(28)(1,150)

(272)

(4)

(4)

(39)

Deferred tax liabilities:

2,147

175

2,322

45,25947,581(47,581)̶

$361,281$6,434,230$179,820$6,614,050$ (47,581)$6,566,469$ 605,587$ 40,896$ 646,483$ 16,362$ 662,845$$ 663,175$6,427,672$374,913$6,802,585$590,390$7,392,975$(143,626)$7,249,349

			Total current deferred
tax liabilities$

40,799$ 19,850$

60,649$ 29,071$

89,720$340$

90,060Net current deferred tax assets$

25,000$ 13,515$

38,515$ 55,548$

94,063

$

(417)

$

93,646

330

2013
38.0%

(2) Significant components of the Company’s and its consolidated subsidiaries’ deferred tax assets and liabilities as of March 31, 2014 and2013 were as follows:$6,072,949

Ichthys LNG Pty Ltd

2014reconciliations for theyear ended March 31,
2014 are not disclosed
as the difference
between the statutory
tax rate andCompanyʼs and its
consolidated subsidiariesʼ effective tax rate
was less than 5%		Foreign currency hedge

Other

(32)

(1,154)(311)¥15,535¥15,069$150,942

30
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Notes to Consolidated Financial Statements

Thousands of
U.S. dollars(Note 1)Millions of yen

March 31,

2014

2013

2014

Non-current deferred taxes
Deferred tax assets:¥ 4,011¥ 4,528$ 38,972

405

384

3,935

		Other

1,306

933

12,689			Total non-current deferred
tax assets

5,722

5,845

55,596

		Net defined benefit liability

		Depreciation

Deferred tax liabilities:
		Net unrealized holding gains
on securities(3,797)(2,995)(36,893)

(234)

(183)

(2,273)			Total non-current deferred
tax liabilities(4,031)(3,178)(39,166)

Net non-current deferred tax assets¥ 1,691¥ 2,667$ 16,430

Deferred tax liabilities for land revaluation¥ 3,692¥ 3,692$ 35,873

Valuation of assets and liabilities of acquiredconsolidated subsidiaries at fair market value¥161¥  290$ 1,564

49

3

476

¥

210

¥  293$ 2,040

		Other

OthersNon-current deferred tax liabilities

For the years ended March 31, 2014 and 2013, the valuation
allowances of ¥12,620 million ($122,620 thousand) and ¥10,532 million
have been deducted from the gross amount of the non-current deferred
tax assets, respectively.
Adjustment of deferred tax assets and liabilities
for enacted changes in tax laws and rates
On March 31, 2014, new tax reform laws were announced in Japan, whichchanged the normal statutory tax rate from approximately 38.0% to 35.6%
for the years beginning on or after April 1, 2014.
Due to this change in the statutory tax rate, net deferred tax assets
decreased by ¥1,113 million ($10,814 thousand), deferred income tax anddeferred gains on hedges increased by ¥1,112 million ($10,804 thousand)and ¥1 million ($10 thousand), respectively.

Note 13 — Notes to the Consolidated Statements of Cash Flows
Reconciliation of cash in the consolidated balance sheets and cash and cash
equivalents in the consolidated statements of cash flows was as follows:
Millions of yen

March 31,
Cash and deposits
Marketable securities
Cash and cash equivalents

Thousands of
U.S. dollars(Note 1)

2014

2013

2014

¥354,200¥259,777$3,441,508

31,05325,000301,720¥385,253¥284,777$3,743,228

Note 14 — Land Revaluation
Pursuant to Article 2 of the Enforcement Ordinance for the Law Concerning
Land Revaluation effective March 31, 1998, the Company recorded its
owned land used for business at the fair value as of March 31, 2002, andthe related revaluation difference, net of income taxes, was debited toLand revaluation, net of deferred tax portion in the Net Assets section.
The applicable income tax portion was reported as Deferred Tax Liabilities
for Land Revaluation in the consolidated balance sheets at March 31,
2014 and 2013. When such land is sold, land revaluation is reversed anddebited to retained earnings.
Fair value of the revalued land as of March 31, 2014 was ¥4,330 million($42,072 thousand) less than the book value as of March 31, 2014, whichamounts include ¥1,199 million ($11,650 thousand) relevant to rental property.
Note 15 — Related Party Transactions
This information is not disclosed, as this is immaterial for the years ended
March 31, 2014 and 2013.
Note 16 — Business Combinations
Transactions Under Common Control During the Year Ended March 31, 2014:(a) Outline of the Transactions(1) Name and business of combined entity	Merging company: JGC Plant Solutions Co., Ltd., total engineering
Merged company: JGC PLANTECH Co., Ltd., total engineering(2) Form of business combinations
Transactions under common control(3) Name of the entity after the reorganizationJGC PLANT INNOVATION Co., Ltd.
(4) Outline and purpose of the transaction	JGC Plant Solutions Co., Ltd., a consolidated subsidiary of theCompany merged with JGC PLANTECH Co., Ltd., a consolidated
subsidiary of the Company on July 1, 2013. The purpose of thismerger was to reinforce the following:[1] Development of business in both domestic and overseas markets[2] Increase of cost and technology competitiveness(b) Accounting Method
These transactions were accounted for as a business combination among
entities under common control required by ASBJ Statement No. 21,“Accounting Standard for Business Combinations and Related Matters”
and ASBJ Guidance No. 10, “Guidance on Accounting Standard forBusiness Combinations and Accounting Standard for Business
Divestitures” issued on December 26, 2008.
(c)	Amounts of Assets and Liabilities Received
and Incurred on the Date of Business Combination
Total assets¥5,783 million ($56,189 thousand)Total liabilities¥1,995 million ($19,384 thousand)Note 17 — Rental Property
The fair value of investment and rental property on the consolidated financial
statements at March 31, 2014 and 2013 were as follows:Book value (net of depreciation)¥7,851

Fair value

Decrease

March 31,2013

March 31,2013¥(108)¥7,743¥6,180March 31,2013

Decrease

March 31,2014

March 31,
2014

Millions of yen¥7,743¥(98)¥7,645¥6,180Thousands of U.S dollars(Note 1)

$75,233$(952)$74,281$60,047

Millions of yen

March 31,2012

Rental real estate assets are presented on the consolidated balance
sheets net of accumulated depreciation and accumulated impairment loss.
The reason of the decrease was mainly due to the depreciation of the assets.
The fair value was determined by the Company based on “the guidance
for appraising real estate”.
The Company has rental commercial properties (including land) in
Kanagawa Prefecture. The rental incomes in the Other income were ¥416
million ($4,042 thousand) and ¥404 million for the years ended March 31,
2014 and 2013, respectively.

Note 18 — Financial Instruments
A. Qualitative Information on Financial Instruments(a) Policies for Using Financial Instruments
The Company manages surplus capital using financial instruments that areshort-term and carry low risk. The Company uses derivatives to mitigate
the risks that are described below, and does not use derivatives for speculative transactions.
(b)	Financial Instruments, Associated Risks
and the Risk Management System
Notes and accounts receivable expose the Company to customer credit
risk. Marketable securities are mainly negotiable certificate of deposit.
Investment securities are mainly related to the business and capital alliancecompanies and expose the Company to the changes in market prices.
Long-term loans receivable are mainly related to subsidiaries and affiliates.
Most notes and accounts payable are due within one year. Someaccounts payable associated with purchasing machines and construction
contracts are denominated in foreign currencies, which expose theCompany to the risks of exchange rate fluctuations. The Company generally
procures capital required under its business plan through bank loans.
Some bank loans expose the Company to the risks of interest rate
fluctuations, which the Company uses interest rate swaps to hedge.
The Company uses derivatives transactions including foreign exchange
forward contracts to hedge the risk of exchange rate fluctuations associatedwith accounts receivable and payable denominated in foreign currencies
and interest rate swaps to hedge the risk of interest rate fluctuations associated with loans. “Derivative Transactions and Hedge Accounting” in Note1(w) and Note 10 presented earlier explain hedge accounting issues
including methods, hedging policies, hedged items and recognition of gainor loss on hedged positions.

(c) Risk Management System for Financial Instruments(1) Credit risk management (counter-party risk)
	The Company has established internal procedures for receivables
under which the related divisions are primarily responsible for periodicallymonitoring counter-party status. The department manages amounts
and settlement dates by counter-party and works to quickly identify
and mitigate payment risk that may result from situations including
deterioration of the financial condition of counter-parties. Consolidated
subsidiaries are subject to the same risk management rules.
			 In using derivatives transactions, the Company mitigates counterparty risk by conducting transactions with highly creditworthy financial
institutions.
(2)	Market risk management (risk of exchange rate and interest rate fluctuations)	The Company monitors the balance of the foreign currency receivableand payable by each currency and every month and utilizes foreign
currency forward contracts and foreign currency deposit to hedge therisk of fluctuations. The Company uses interest rate swaps to mitigate
the risk of interest rate fluctuations associated with loans.
		 Regarding marketable securities and investment securities, theCompany periodically examines fair value and the financial conditionof the issuing entities and revises its portfolio based on its relationships with issuing entities.
		 The derivative transactions are executed and managed by the
Finance & Accounting Department in accordance with the establishedpolicies and within the specified limit on the amounts of derivativetransactions allowed. The Department periodically provides administrative reports on the results to the financial director and treasurer.
(3)	Management of liquidity risk associated with capital procurement(payment default risk)
	The Company manages liquidity risk by creating and updating a capital
deployment plan based on reports from each division.
(d)	Supplemental Information on the Fair Value of Financial Instruments
The fair value of financial instruments is based on market prices,or a reasonable estimate of fair value for instruments for which market
prices are not available. Estimates of fair value are subject to fluctuation
because they employ variable factors and assumptions.
In addition, the contractual amounts of the derivatives transactions
discussed in B (a) below are not an indicator of the market risk associatedwith derivatives transactions.
B. Fair Values of Financial Information(a) Fair Values of Financial Instruments
Fair values of financial instruments as of March 31, 2014 and 2013 weresummarized as follows:
The financial instruments, whose fair value were difficult to measure,
were not included in the table below and were summarized in B (b).

31
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Notes to Consolidated Financial Statements

Millions of yen

March 31, 2014
Cash and deposits

Carrying
amountEstimated
fair value

Difference¥354,200¥354,200̶Marketable securities

31,05331,053̶Notes and accounts receivable

102,170

102,170

̶

Other receivable*1

13,287

13,287̶Marketable and investment
securities

22,98422,984̶Long-term loans receivable, net*2

1,018

1,280

¥262

Total Assets¥524,712¥524,974¥262

Notes and accounts payable¥107,450¥107,450

̶

Long-term debt

13,001

13,558¥557

Total Liabilities¥120,451¥121,008¥557

Derivative financial instruments, net

¥

¥

26

26

̶
Millions of yen

March 31, 2013
Cash and deposits

Carrying
amountEstimated
fair value¥259,777¥259,777—

Marketable securities

25,00025,000—Notes and accounts receivable

96,57096,570—

Other receivable*

10,972

10,972

1

DifferenceMarketable and investment
securities

21,03521,035—Long-term loans receivable, net*2

1,412

1,452

¥ 40

Total Assets¥414,766¥414,806¥ 40

Notes and accounts payable¥ 93,335¥ 93,335

—

9,363

9,919

¥556

Long-term debt
Total Liabilities¥102,698¥103,254¥556

Derivative financial instruments, net¥  1,864¥  1,864—

Thousands of U.S. dollars (Note 1)
Carrying amount

Estimated
fair value

Difference$3,441,508$3,441,508̶Marketable securities

301,720

301,720

̶Notes and accounts receivable

992,713992,713̶

Other receivable*1

129,100

129,100̶Marketable and investment
securities

223,319

223,319̶March 31, 2014
Cash and deposits

9,891

12,437$2,546

Total Assets$5,098,251$5,100,797$2,546

Notes and accounts payable$1,044,015$1,044,015

̶

126,321

131,733$5,412$5,412Long-term loans receivable, net*2

Long-term debt
Total Liabilities$1,170,336$1,175,748

Derivative financial instruments, net

$

$

253

253

		 The following methods and assumptions were used to estimate thefair value of the financial instruments.
Cash and deposits, and Marketable securities
	All deposits and negotiable certificates of deposit are short-term.
Therefore, the carrying amount is used for the fair value of these items
because these amounts are essentially the same.
Notes and accounts receivable	Notes and accounts receivable are short-term. Therefore, the carrying
amount is used for the fair value of short-term receivable because
these amounts are essentially the same.
Other receivable	Other receivable are short-term. Therefore, the carrying amount isused for the fair value of short-term receivable because theseamounts are essentially the same.
Marketable and investment securities
	Fair value of marketable and investment securities is the price listed
on securities exchanges for equities. In addition, Note 9 provides
information on marketable securities by holding intent.
Long-term loans receivable	Fair value of long-term loans receivable is estimated as discounted
present value of total principal and interest using assumed interest
rates for equivalent new loans.
Notes and accounts payable	Notes and accounts payable are short-term. Therefore, carrying
amount is used for the fair value of short-term payables because
these amounts are essentially the same.
Long-term debt
	Fair value of long-term debt is estimated as the discounted present
value of total principal and interest using assumed interest rates forequivalent new loans. Interest rate swaps subject to special method
are used for long-term floating-rate loans. Principal and interest of theloans in which these interest rate swaps are embedded are discounted using a reasonable estimate of the interest rate on the loan
at the time of issue.
Derivative financial instruments	Please refer to “Derivative Transactions and Hedge Accounting” inNote 1(w) and Note 10.
(b)	Financial Instruments, Whose Fair Value Were Difficult to Measure
The financial instruments, whose fair value were difficult to measure, as ofMarch 31, 2014 and 2013 were summarized as follows:
Thousands of
U.S. dollars(Note 1)Millions of yen̶*1.	Other receivable is included in Other current assets on the consolidated balance sheets.
*2.	The amount of individual allowance for doubtful accounts is deducted from long-termloans receivable.

March 31,

2014

2013

2014

Unconsolidated subsidiaries
and affiliates¥28,768¥33,324$279,518

Non-listed equity securities

23,30523,505

226,438

38

38

369

Subscription certificate

It is difficult to measure the fair value of these financial instruments
because there is no market price available and it is not practical to calculate future cash flow. Therefore, these financial instruments were notincluded in the Marketable and investment securities described in B (a).

(c) Maturities of Financial Instruments
The maturities of the financial instruments at March 31, 2014 were as follows:

Tax effects allocated to each component of other comprehensive
income for the years ended March 31, 2014 and 2013 were as follows:

Millions of yen
2026 and
thereafter

Millions of yen
Before-tax
amountTax benefit(expense)

Net-of-tax
amountYear ending March 31,
Cash and deposits¥354,200———

year ended March 31, 2014
Net unrealized holding gains on securities¥ 2,252¥ (801)¥ 1,451

Marketable securities

31,053———

Deferred gains (losses) on hedges(2,657)1,000(1,657)Notes and accounts receivable

102,170———

Translation adjustments

3,897

̶

3,897

Other receivable

13,287———

Equity for equity method affiliates

0

̶

0

—

¥418

¥50

¥550

¥ 3,492¥ 199¥ 3,691¥500,710

¥418

¥50

¥550
Before-tax
amountTax benefit(expense)

Net-of-tax
amount¥3,0992015 2016–2020 2021–2025

Long-term loans receivable, net
Assets Total

Other comprehensive income

Millions of yen

Thousands of U.S. dollars (Note 1)2015 2016–2020 2021–2025

2026 and
thereafterYear ended March 31, 2013
Net unrealized holding gains on securities

Year ending March 31,
Cash and deposits¥ 4,812¥(1,713)$3,441,508

—

—

—

Deferred gains (losses) on hedges

2,528

(961)

1,567

Marketable securities

301,720———

Translation adjustments

4,068

—

4,068

Notes and accounts receivable

992,713———Equity for equity method affiliates

Other receivable

129,100———

Other comprehensive incomeLong-term loans receivable, net
Assets Total—$4,061$486$5,344$4,865,041$4,061$486$5,344

Please see Note 3 for the maturities of long term-debt.

Note 19 — Other Comprehensive Income
Reclassification adjustments of the Company’s and consolidated
subsidiaries’ other comprehensive income for the years ended March 31,
2014 and 2013 were as follows:
Thousands of
U.S. dollars(Note 1)Millions of yen

March 31,
Net unrealized holding gains on securities
Unrealized holding gains arisingduring the year
Reclassification adjustment forgains (losses) realized in net income
Sub-total
Deferred gains (losses) on hedges
Deferred gains (losses) on hedges
arising during the year
Sub-total
Translation adjustments
Translation adjustments arisingduring the year
Reclassification adjustment fortranslation adjustment
Sub-total
Equity for equity method affiliates
Share of other comprehensive incomeofaffiliates accounted for using equity
method arising during the year
Sub-total
Before-tax amountTax benefit (expense)
Total other comprehensive income

2014

2013

2014

¥ 1,829¥ 4,818$ 17,771

423
2,252

(6)
4,812

4,110
21,881(2,657)(2,657)

2,528
2,528

(25,816)(25,816)

3,897

2,725

37,864

̶
3,897

1,343
4,068

̶
37,864

0
0
3,492
199
¥ 3,691(0)(0)
11,408(2,674)¥ 8,73400
33,9291,934$ 35,863

(0)

—

(0)

¥11,408¥(2,674)¥8,734

Thousands of U.S. dollars (Note 1)

year ended March 31, 2014
Net unrealized holding gains on securities

Before-tax
amountTax benefit(expense)$ 21,881$(7,782) $ 14,099

Deferred gains (losses) on hedges(25,816)

9,716(16,100)

Translation adjustments

37,864

̶

37,8640̶0Equity for equity method affiliates
Other comprehensive income$ 33,929

Net-of-tax
amount$ 1,934 $ 35,863

32
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate GovernanceIndependent Auditor’s Report

Six-Year Summary—Non-Consolidated

JGC CORPORATION

For the six years ended March 31.
Yen amounts are in millions except per share data.

To the Board of Directors of JGC Corporation

Financial Section

JGC Group

2014

2013

2012

2011

2010

2009

¥ 455,280¥ 454,261¥ 451,724¥ 359,561¥317,597¥349,925

Operating Income

49,724

48,94654,21851,91832,14541,356

Income before Taxes on Income

66,09556,25060,70845,20527,93444,578Net Income

43,104

44,14734,30422,853

21,271

30,214

Total Current Assets

415,788357,957

299,329

272,339

232,540

276,325

Total Current Liabilities

231,252

200,001

173,793

167,621

126,240

184,205

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting

Working Capital

184,536

157,956

125,536

104,718

106,300

92,120principles generally accepted in Japan, and for such internal control as management determines is necessary to enable the preparation of

Current Ratio

179.8%

179.0%

172.2%

162.5%

184.2%

150.0%Net Property and Equipment

48,68450,91349,961

49,95650,36449,414

Total Assets

568,375

507,981444,659

415,737

374,549

412,893

1,603

1,876

2,486

1,663

16,104

16,757

Total Net Assets

321,321290,011251,006

227,794

212,619

192,655

New Contracts

531,167

468,427

342,983

569,128

675,505

440,548

1,119,394

1,043,505

1,005,260

1,114,182

953,511

641,781170.75174.86135.86

90.44

84.15

119.5

Cash Dividends per Share (in yen)

46.5

45.5

38.5

30.0

21.0

30.0

Number of Employees

2,238

2,185

2,155

2,137

2,107

2,069

Net Sales

We have audited the accompanying consolidated financial statements of JGC Corporation and its consolidated subsidiaries, which comprisethe consolidated balance sheets as at March 31, 2014 and 2013, and the consolidated statements of income, statements of comprehensive
income, statements of changes in net assets and statements of cash flows for the years then ended, and a summary of significant accounting
policies and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements

consolidated financial statements that are free from material misstatements, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits inaccordance with auditing standards generally accepted in Japan. Those standards require that we comply with ethical requirements and planand perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements.

Long-Term Debt, Less Current Maturities

The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated financial

Outstanding Contracts

statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation

Net Income per Share (in yen)and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances,while the objective of the financial statement audit is not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of JGC Corporation and its
consolidated subsidiaries as of March 31, 2014 and 2013, and their financial performance and cash flows for the years ended in accordancewith accounting principles generally accepted in Japan.
Convenience Translation
The U.S. dollar amounts in the accompanying consolidated financial statements with respect to the year ended March 31, 2014 are presented
solely for convenience. Our audit also included the translation of yen amounts into U.S. dollar amounts and, in our opinion, such translation has
been made on the basis described in Note 1 to the consolidated financial statements.

June 27, 2014
Tokyo, Japan

33
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Environmental Activities andContribution to Society

Competitive Advantages

Corporate Governance

Financial Section

JGC Group

Non-Consolidated Balance Sheets
JGC CORPORATIONMarch 31, 2014 and 2013

Millions of yen

Thousands of
U.S. dollars(Note 1)Millions of yen

Thousands of
U.S. dollars(Note 1)

2014

2013

2014

2014

2013

2014

Cash and deposits¥255,064¥214,775$2,478,274¥ 23,181¥ 21,481$ 225,233

Marketable securities

31,00025,000301,205

Notes and accounts payable (Note 2)

62,94460,430611,582

Notes and accounts receivable (Note 2)

73,136

62,574

710,610

Advances received on uncompleted contracts (Note 2)

94,46956,854

917,888

Contract works in progress

25,780

Deferred tax assets (Note 5)

14,301

20,894250,486

Reserve for job warranty costs

2,019

1,713

19,617

13,245

138,953

Reserve for losses on contracts

19,463

20,376

189,108

Other current assets (Note 2)

16,595

21,543

161,241

Income taxes payable

14,592

15,623

141,780

Allowance for doubtful accounts

(88)

(74)

(855)

Provision for loss on guarantees

66

2,417

641

			 total Current assets

415,788357,957

4,039,914

Other current liabilities (Note 2)

14,518

21,107141,061			 total Current Liabilities

231,252

200,001

2,246,910

Long-term Debt, Less Current Maturities (Note 3)

1,603

1,876

15,575retirement and severance benefits

7,683

9,199

74,650

Deferred tax Liabilities for Land revaluation (Note 5)

3,692

3,692

35,873other Non-Current Liabilities (Note 2)

2,824

3,202

27,439247,054

217,970

2,400,447

assetsCurrent assets:

Current Liabilities:

Property and equipment (Note 3):Land21,931

21,931

213,088

Buildings and structures

53,05152,495515,459

Machinery and equipment

10,564

10,768102,643

Construction in progress

21

951

204

85,567

86,145

831,394(36,883)(35,232)(358,366)

48,68450,913473,028

		Less accumulated depreciation

			 Net Property and equipment

Liabilities and Net assets

Short-term loans (Notes 2 & 3)

			 total Liabilities

Contingencies (Note 4)

Net assets:
Common stock

other assets:			

Authorized — 600,000,000 shares,			Issued — 259,052,929 shares in 2014 and 2013

23,511

23,511

228,440

Capital surplus

25,60725,603248,805

Legal earnings reserve

2,693

2,693

26,166

275,802244,185

2,679,771

Investments in subsidiaries and affiliates (Note 3)

58,30752,186566,527

Retained earnings

Marketable and investment securities

35,88535,344

348,669

Treasury stock, at cost

(6,596)(6,449)(64,089)

Long-term loans receivable (Notes 2 & 3)

6,575

7,230

63,885Net unrealized holding gains on securities

6,846

5,404

66,517

378

1,368

3,673

Deferred gains on hedges

̶

1,606

̶

Land revaluation, net of deferred tax portion(6,542)(6,542)(63,564)

Deferred tax assets (Note 5)
Other (Note 2)

2,758

2,983

26,797

			 total other assets

103,903

99,111

1,009,551

total Net assets

321,321290,011

3,122,046

			 total assets¥568,375¥507,981$5,522,493

total Liabilities and Net assets¥568,375¥507,981$5,522,493

The accompanying notes are an integral part of these statements.

34
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

Non-Consolidated Statements of Income

Non-Consolidated Statements of Changes in Net Assets

JGC CORPORATION
Years ended March 31, 2014 and 2013

JGC CORPORATION
Years ended March 31, 2014 and 2013

Millions of yen

Thousands of
U.S. dollars(Note 1)

2014

2013

2014

Net sales¥455,280¥454,261$4,423,630

Cost of sales
Gross profit

394,139

393,520

3,829,567

61,14160,741

594,063

selling, general and administrative expenses
Operating income

11,417

11,795110,930

49,724

48,946483,133

JGC Group

Thousands ofsharesMillions of yen
Common stockbalance at april 1, 2012

SharesAmountCapitalsurplusLegalearnings
reserve

259,053¥23,511¥25,603¥2,693Retainedearnings¥209,758

Net income for the year

44,147

Cash dividends(9,720)Land
Treasury Net unrealized
Deferredrevaluation, net ofstock, holding gains on gains on hedges
deferredat costsecurities(Note 1)
tax portion¥(6,375)

Net unrealized holding gains on¥2,319¥   393,085

securities
Net deferred gains on hedges

other income (expenses):
Interest and dividend income
Interest expense
Loss on sales and disposal of property and equipment
Gain on sales of marketable and investment securities
Reversal of provision for guarantees
Loss on provision for guarantees
Loss on allowance for investment
Exchange gain, net
Reversal for doubtful accounts
Other, net
Income before taxes on income

taxes on income (Note 5):
Current
Deferred
Net income

9,491

153,031

(143)

(102)

(1,389)The accompanying notes are an integral part of these statements.

balance at March 31 and april 1, 2013

(758)

Cash dividends

91

1,156

Net unrealized holding gains on

2,351

—

22,843(2,417)

̶(5,951)(76,535)

6,732

3,434

65,410

̶

2,181

̶

(483)

668

(4,693)

16,371

7,304

159,065

66,09556,250642,198

15,494222,202122(3,391)

1,185¥ 43,104¥ 44,147$ 418,811
U.S. dollars(Note 1)¥170.75¥174.86$1.66¥ 45.50$0.45¥2,693¥244,185¥(6,449)¥5,404¥ 1,606

4

1

Net deferred gains on hedges(1,606)

Increase of treasury stockbalance at March 31, 2014¥(6,542)

1,442

Gain on disposal of treasury stock(148)
259,053¥23,511¥25,607¥2,693¥275,802¥(6,596)¥6,846¥̶¥(6,542)

Thousands of U.S. dollars (Note 1)

Common stock

CapitalsurplusLegalearnings
reserve

Retainedearnings$228,440$248,766$26,166$2,372,571

Net income for the year

418,811

Cash dividends(111,611)

Land
Treasury Net unrealized
Deferredrevaluation, net ofstock, holding gains on gains on hedges
deferredat costsecurities(Note 1)
tax portion$(62,660)

Net unrealized holding gains on securities$52,50739$(63,564)

9

Net deferred gains on hedges(15,604)

Increase of treasury stock

The accompanying notes are an integral part of these statements.

$ 15,604

14,010Gain on disposal of treasury stockbalance at March 31, 2014

¥ 46.50¥25,603securities

balance at april 1, 2013

22,869¥23,511(11,487)(91)̶

259,053

43,104(78)(7,877)(74)

Net income for the year

119

Yen

amounts Per share of Common stock:
Net income
Cash dividends applicable to the year

1,567

Increase of treasury stock

15,750¥(6,542)(1,438)$228,440$248,805$26,166$2,679,771$(64,089)$66,517$̶$(63,564)

35
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Notes to Non-Consolidated Financial Statements
Note 1 — Summary of Significant Accounting Policies(a) Basis of Presenting Non-Consolidated Financial Statements
The accompanying non-consolidated financial statements of JGC
Corporation (Nikki Kabushiki Kaisha, the “Company”) have been prepared in accordance with the provisions set forth in the Japaneseissued by subsidiaries and affiliates, and (4) all other securities that

items directly attributable to the contract, and job-related overheads.

(k) Retirement and Severance Benefits and Pension Costs

are not classified in any of the above categories (hereafter, “available-

Selling, general and administrative expenses are charged to opera-

The Company provides two types of post-employment benefit plans,for-sale securities”). The Company did not have the securities definedtions as incurred and are not allocated to contract job work costs.

unfunded lump-sum payment plans and funded non-contributory

The Company normally receives payments from customers on

pension plans, under which all eligible employees are entitled toa progress basis in accordance with the terms of the respective con-benefits based on the level of wages and salaries at the time ofstruction contracts.

retirement or termination, length of service and certain other factors.

as (1) and (2) above in the years ended March 31, 2014 and 2013.
Available-for-sale securities with available fair market values are

Financial Instruments and Exchange Act and its related accounting

stated at fair market value. Unrealized gains and losses on theseregulations, and in conformity with accounting principles generally

securities are reported, net of applicable income taxes, as a separate

accepted in Japan (“Japanese GAAP”), which are different in certain

component of net assets. Realized gains and losses on the sale of(h) Operating Cycle

retirement benefits at March 31, 2014 and 2013, based on the estimatedrespects as to application and disclosure requirements of Internationalsuch securities are computed using the moving-average method.

Assets and liabilities related to long-term contract jobs are included

amounts of projected benefit obligation, actuarially calculated using

Other securities with no available fair market value are stated at moving-in current assets and current liabilities in the accompanying non-con-certain assumptions and the fair values of the plan assets at these dates.

average cost. Equity securities issued by subsidiaries and affiliates,

solidated balance sheets, as they will be liquidated in the normal course

been translated into English (with some expanded descriptions) fromwhich are not consolidated or accounted for using the equity

of contract completion, although it may require more than one year.

the non-consolidated financial statements of the Company preparedmethod, are stated at moving-average cost.

Financial Reporting Standards.
The accompanying non-consolidated financial statements havein accordance with Japanese GAAP and filed with the appropriate

If the market value of available-for-sale securities declines

Local Finance Bureau of the Ministry of Finance as required by thesignificantly, such securities are restated at fair market value and theJapanese Financial Instruments and Exchange Act. Certain supple-

difference between fair market value and the carrying amount is rec-mentary information included in the statutory Japanese language

ognized as loss in the period of decline. For equity securities with nonon-consolidated financial statements, but not required for fair pre-available fair market value, if the net asset value of the investee declines

sentation, is not presented in the accompanying non-consolidated

significantly, such securities are required to be written down to the net

financial statements.

asset value with the corresponding losses in the period of decline. In

In addition, certain reclassifications have been made to present

these cases, such fair market value or the net asset value will be the

The Company provided allowance for employees’ severance andPrior service costs are recognized as expenses in equal amounts
over the average of the estimated remaining service lives of theemployees (12 years), and actuarial gains and losses are recognized(i) Property and Equipment, Depreciation and Finance Leases

as expenses using the declining-balance method over the average ofProperty and equipment are stated at cost, except for certain revalued

the estimated remaining service lives (12 years) commencing in theland. Depreciation on property and equipment is calculated using thefollowing period.

straight-line method for buildings used for business operation, andthe declining-balance method for other property and equipment over(l) Research and Development Costs

the estimated useful lives of the assets based on the Corporate Tax

Research and development costs for the improvement of existing

Code of Japan.

skills and technologies or the development of new skills and technol-

Effective as of the accounting period ended March 31, 2013,ogies, including basic research and fundamental development costs,

carrying amount of the securities at the beginning of the next year.

the Company has changed its depreciation procedure based on antions of previously reported amounts have been made to reconcile(e) Allowance for Losses on Investment

and after April 1, 2012. The effect of this change on the financial(m) Taxes on Income

the financial statements for the year ended March 31, 2013 to the

To prepare for estimated losses to be incurred in the future, allowancestatement result is immaterial.

The Company provides tax effects of temporary differences between

2014 presentation.

for losses on investment is stated in amounts considered to be

the accompanying financial statements in a format which is morefamiliar to readers outside Japan. Furthermore, certain reclassifica-

The translation of the Japanese yen amounts into U.S. dollars is
included solely for the convenience of readers outside Japan, using

appropriate based on financial condition of investments.
In Other Assets the amount of Allowance for Losses on

the prevailing exchange rate at March 31, 2014, which was ¥102.92

Investment is deducted from investments in unconsolidated subsid-

to U.S. $1. The convenience translations should not be construed as

iaries and affiliates and marketable and investment securities.

(b) Conversion of Foreign Currencies

All finance leasing transactions were capitalized except forthe carrying amounts and the tax basis of assets and liabilities.

finance leases which commenced prior to April 1, 2008 and have

The asset and liability approach is used to recognize deferred tax

been accounted for as operating leases, and continue to be accounted

assets and liabilities for the expected future tax consequences offor as operating leases.

temporary differences.

Expenditures for new facilities and those that substantially
increase the useful lives of existing property and equipment are capi-(n) Reserve for Job Warranty Costs(f ) Provision for Losses on Guarantees

talized. Maintenance, repair and minor renewals are charged to

A reserve for the estimated cost of warranty obligations is provided

To provide for losses on guarantees, the Company makes a provision

expenses as incurred.

for the Company’s engineering, procurement and construction work

representations that the Japanese yen amounts could be converted
into U.S. dollars at this or any other rate of exchange.

are charged to operations in the period incurred.

amendment in corporation tax law for the tangible assets acquired on

for potential losses at the end of the fiscal year.

The cost and accumulated depreciation applicable to assets retired

at the time the related sales on contracts are recorded.

or otherwise disposed of are eliminated from the related accounts

Receivables and payables denominated in foreign currencies are(o) Reserve for Losses on Contracts

translated into Japanese yen at the year-end rates.

(g)	Recognition of Sales, Contract Works in Progress
and Advances Received on Uncompleted Contracts

and the gain or loss on disposal is credited or charged to income.

(c) Allowance for Doubtful Accounts

Sales on contracts for relatively large projects, which require long(j) Impairment of Fixed Assets

amount of probable losses to be incurred in future years in respect ofNotes and accounts receivable, including loans and other receivables,

periods for completion and which generally include engineering,

The Company reviews its long-lived assets for impairment wheneverconstruction projects in progress.

are valued by providing for individually estimated uncollectible

procurement (components, parts, etc.) and construction on aevents or changes in circumstances indicate the carrying amount ofamounts plus the amounts for probable losses calculated by applying

full-turnkey basis, are recognized on the percentage-of-completionan asset or asset group may not be recoverable. An impairment loss(p) Per Share Informationa percentage based on collection experience to the remaining

method, primarily based on contract costs incurred to date compared

would be recognized if the carrying amount of an asset or asset

Cash dividends per share have been presented on an accrual basis

accounts. In Other Assets, the amount of Allowance for Doubtful

with total estimated costs for contract completion. The percentage-group exceeds the sum of the undiscounted future cash flows

and include dividends to be approved after the balance sheet date

Accounts is deducted from long-term loans receivable and other.

of-completion method is adopted for large jobs for which the

expected to result from the continued use and eventual disposition

but applicable to the year then ended.

construction period exceeds 12 months and the contract amountof the asset or asset group. The impairment loss would be measured

exceeds ¥1,000 million. Revisions in contract revenue and cost estimatesas the amount by which the carrying amount of the asset exceeds its

are recognized in the period in which they are determined.

recoverable amount, which is the higher of the discounted cash flows(d)	Marketable Securities, Investments in Subsidiaries and Affiliates,and Marketable and Investment Securities

The Company is required to examine the intent of holding each security

Contract works in progress are stated at cost determined byand classify those securities as (1) securities held for trading purposes,a specific identification method and comprised of direct materials,(2) debt securities intended to be held to maturities, (3) equity securities

components and parts, direct labor, subcontractors’ fees and otherA reserve for losses on contracts is provided for an estimatedfrom the continued use and eventual disposition of the asset or the
net selling price at disposition.

36
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Notes to Non-Consolidated Financial Statements(q) Derivative Transactions and Hedge Accounting

Thousands of
U.S. dollars(Note 1)Millions of yen

The accounting standard for financial instruments requires companies
to state derivative financial instruments at fair value and to recognizechanges in the fair value as gains or losses unless the derivative
financial instruments are used for hedging purposes.
If derivative financial instruments are used as hedges and meetcertain hedging criteria, the Company defers recognition of gains
or losses resulting from changes in fair value of derivative financial
instruments until the related losses or gains of the hedged items
are recognized.
However, in cases where foreign exchange forward contracts are

March 31,

Notes and accounts receivable2014¥ 4,9812013¥   825 $ 48,397

5,433

9,396

52,789March 31,

Long-term loans receivable

6,557

7,208

63,71026—253Investments in subsidiaries
and affiliates¥1,441¥  801$14,001

Notes and accounts payable

4,513

6,887

43,850Long-term loans receivable

50

400

486

Short-term loans

22,872

20,729222,231¥1,491¥1,201$14,487

Other assets

Advances received on uncompleted contracts
Other current liabilities

forward contracts and hedged items are accounted for in the follow-

Other non-current liabilities

36

81

350

1,098

717

10,668

182

184

1,768

ing manner (Allocation method):existing foreign currency receivable or payable,(i)	The difference, if any, between the Japanese yen amount of thehedged foreign currency receivable or payable translated using
the spot rate at the inception date of the contract and the book(ii)	The discount or premium on the contract (that is, the difference
between the Japanese yen amount of the contract translatedusing the contracted forward rate and that translated using the
spot rate at the inception date of the contract) is recognizedover the term of the contract.
(2)	If a foreign exchange forward contract is executed to hedge
a future transaction denominated in a foreign currency, the futuretransaction will be recorded using the contracted forward rate,
and no gains or losses on the foreign exchange forward contract

meet certain hedging criteria, the net amount to be paid or received
under the interest rate swap contract is added to or deducted fromthe interest on the liabilities for which the swap contract was executed (Special method for interest rate swap).
(r) Accrued Bonuses to Directors and Corporate Auditors

The Company recognizes directors’ and corporate auditors’ bonuses

2014

2013

2014

The annual maturities of long-term debt outstanding at March 31,
2014 were as follows:
AmountThousands of
U.S. dollars(Note 1)Millions of yen

Note 3 — Borrowings and Assets Pledged as Collateral2015¥  309$ 3,002

At March 31, 2014 and 2013, short-term loans consisted of unse-

2016

103

1,001

cured debt from subsidiaries and bore interest at TIBOR.

2017

—

—

Long-term debt consisted of the following:Thousands of
U.S. dollars(Note 1)Millions of yen

March 31,

unsecured Debt
0.35% – 1.25% loans from banks
and insurance companies,
due serially through 2018
Less current maturities
Long-term debt due after one year

2014

2013

—
14,574¥1,912$18,577¥2,628$18,577

indebtedness of certain of its trading agents, suppliers, subcon-

(309)

(752)

(3,002)tractors and certain subsidiaries and affiliates. The aggregate amount¥1,603¥1,876$15,575

2014

2013

of such guarantees was ¥41,581 million ($404,013 thousand)and ¥33,565 million at March 31, 2014 and 2013, respectively.

2014

Land

¥4,280¥4,280$41,586Buildings and structures,at net book value

1,992

2,089

19,3552

2

19¥6,274¥6,371$60,960

Thousands of
U.S. dollars(Note 1)Millions of yen

March 31,(2)	The Company has guaranteed employees’ housing loans and

2014

2013

2014

Current deferred taxes
Deferred tax assets:
		 Accrued employees’ bonuses¥ 1,785

		 Reserve for job warranty costs

719

651

6,986

		 Reserve for losses on contracts

6,929

7,743

67,324

		Other

4,868

4,184

47,299			Total current deferred
tax assets

14,301

14,395

138,953(1,150)̶¥ 1,817 $ 17,344

Deferred tax liabilities:
		Forward exchange contract
hedge

̶

Net current deferred tax assets¥14,301¥13,245 $138,953
Thousands of
U.S. dollars(Note 1)Millions of yen

March 31,

2014

2013

2014

¥ 2,735¥ 3,412$ 26,574

336

352

3,265

		Other

1,227

725

11,922

			Total non-current deferred
tax assets

4,298

4,489

41,761(3,784)(2,987)(36,767)

(136)

(134)

(1,321)(3,920)(3,121)(38,088)

Non-current deferred taxes
Deferred tax assets:
		 Employee’s retirement and		 severance benefits¥1,912Thousands of
U.S. dollars(Note 1)Millions of yen

Total

Total

—
1,500

(1)	It is a business practice in Japan for a company to guarantee theMarch 31, 2014 and 2013 were as follows:Machinery and equipment,
at net book value

2019 and thereafter

2014

Assets pledged as collateral for other non-current liabilities at

March 31,2018

Note 4 — Contingencies

are recognized.
Also, where interest rate swap contracts are used as hedges andTotal

Year ending March 31,

value of the receivable or payable is recognized in the statementof income in the period which includes the inception date, andThousands of
U.S. dollars(Note 1)Millions of yen

2014

Other current assets

used as hedges and meet certain hedging criteria, foreign exchange(1)	If a foreign exchange forward contract is executed to hedge an

Assets pledged as collateral for subsidiary’s debt at March 31,
2014 and 2013 were as follows:		Depreciation

Deferred tax liabilities:
		Net unrealized holding gains
on securities
		Otherothers from banks in the amount of ¥9 million ($87 thousand) and			Total deferred tax liabilities¥7 million at March 31, 2014 and 2013, respectively.

Net non-current deferred tax
assets¥378¥ 1,368$ 3,673

Deferred tax liabilities for land
revaluation¥ 3,692¥ 3,692$ 35,873

Note 5 — Taxes on Income
The statutory tax rates are 38.0% for the years ended March 31,

For the years ended March 31, 2014 and 2013, the valuation2014 and 2013.
The following table summarizes the significant differences between

allowances of ¥12,031 million ($116,897 thousand) and ¥9,905 mil-the statutory tax rate and the Company’s effective tax rate for financial

lion have been deducted from the gross amount of the non-current

statement purposes for the years ended March 31, 2014 and 2013:deferred tax assets, respectively.

as expenses when incurred.
Statutory tax rate

2014

2013

38.0%

38.0%

Adjustment of deferred tax assets and liabilities
for enacted changes in tax laws and rates

Note 2 — Receivables from and Payables to Subsidiariesand Affiliates

Non-deductible expenses

0.2

0.4

Significant receivables from and payables to subsidiaries and affiliates

Non-taxable dividend income

(7.6)

(4.8)

at March 31, 2014 and 2013 were as follows:

Tax credit utilized

(0.2)

(0.3)

which changed the normal statutory tax rate from approximately

Other

4.4

(11.8)

38.0% to 35.6% for the years beginning on or after April 1, 2014.

Effective tax rate

34.8%

21.5%

Significant components of the Company’s deferred tax assets
and liabilities as of March 31, 2014 and 2013 were as follows:

On March 31, 2014, new tax reform laws were announced in Japan,

Due to this change in the statutory tax rate, net deferred tax
assets decreased by ¥1,019 million ($9,904 thousand), deferredincome tax increased by ¥1,019 million ($9,901 thousand).

37
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Independent Auditor’s Report

Supplemental ExplanationJGC CORPORATIONJGC CORPORATION

Corporate Governance

Financial Section

JGC Group

To the Board of Directors of JGC Corporation
We have audited the accompanying non-consolidated financial statements of JGC Corporation, which comprise the non-consolidated balance
sheets as at March 31, 2014 and 2013, and the non-consolidated statements of income, and statements of changes in net assets for the years
then ended, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles
generally accepted in Japan, and for such internal control as management determines is necessary to enable the preparation of financial statementsthat are free from material misstatements, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audits.We conducted our audits in accordance withauditing standards generally accepted in Japan.Those standards require that we comply with ethical requirements and plan and performthe audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures
selected depend on our judgment, including the assessment of the risks of material misstatement of the financial statements, whether due tofraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of thefinancial statements in order to design audit procedures that are appropriate in the circumstances, while the objective of the financial statement

Internal Control over Financial Reporting in Japan
Under the Financial Instruments and Exchange Act in Japan (“the Act”), which was enacted in June 2006, the management of all listed companies in Japan are required to implement assessments of internal control over financial reporting (“ICOFR”) as of the end of the fiscal year and the
management assessment shall be audited by independent auditors, effective from the fiscal year beginning on or after April 1, 2008.
We have evaluated our ICOFR as of March 31, 2014, in accordance with “On the Revision of the Standards and Practice Standards forManagement Assessment and Audit concerning Internal Control Over Financial Reporting (Council Opinions)” published by the BusinessAccounting Council on March 30, 2011.
As a result of conducting the evaluation of ICOFR for the year ended March 31, 2014, we concluded that our internal control system over financial reporting as of March 31, 2014 was operating effectively and reported as such in the Internal Control Report.
Independent Auditor, KPMG AZSA LLC, performed an audit of our management assessment on the effectiveness of ICOFR under the Act.
An English translation of the Internal Control Report and the Independent Auditor’s Report filed under the Act is provided on the following
pages.

audit is not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion, the financial statements present fairly, in all material respects, the financial position of JGC Corporation as at March 31, 2014
and 2013, and its financial performance for the years then ended in accordance with accounting principles generally accepted in Japan.
Convenience Translation
The U.S. dollar amounts in the accompanying financial statements with respect to the year ended March 31, 2014 are presented solely forconvenience. Our audit also included the translation of yen amounts into U.S. dollar amounts and, in our opinion, such translation has been
made on the basis described in Note 1 to the financial statements.

KPMG AZSA LLC
June 27, 2014
Tokyo, JapanJGC Corporation

38
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Supplemental Explanation

Supplemental Explanation

Internal Control Report (Translation)

Independent Auditor’s Report (Translation)

Note
The following is an English translation of the report on internal control over financial reporting filed under the Financial Instruments and Exchange Act in Japan (“ICOFR under the Act”).
This report is presented merely as supplemental information.
There are differences between the management assessment of ICOFR under the Act and one conducted under the attestation standards established by the American Institute of Certified
Public Accountants (“the AICPA”).
In the management assessment of ICOFR under the Act, there is detailed guidance on the scope of the management assessment of ICOFR, such as quantitative guidance on businesslocation selection and/or account selection. In the management assessment of ICOFR under the attestation standards established by the AICPA, there is no such guidance. Accordingly, based on
the quantitative guidance which provides an approximate measure for the scope of assessment of internal control over business processes, we used a measure of approximately two-thirds of total
sales and others for the selection of significant locations and business units.

Note
The following is an English translation of the Independent Auditor’s Report filed under the Financial Instruments and Exchange Act in Japan (“the Act”). This report is presented merely
as supplemental information.
There are differences between an audit of ICOFR under the Act and one conducted under the attestation standards established by the American Institute of Certified Public Accountants (“the AICPA”).
In an audit of ICOFR under the Act, the auditor expresses an opinion on management’s report on ICOFR and does not express an opinion on the company’s ICOFR directly. In an audit of
ICOFR under the attestation standards established by the AICPA, the auditor expresses an opinion on the company’s ICOFR directly.
Also in an audit of ICOFR under the Act, there is detailed guidance on the scope of an audit of ICOFR, such as quantitative guidance on business location selection and/or account selection. In an
audit of ICOFR under the attestation standards established by the AICPA, there is no such guidance. Accordingly, based on the quantitative guidance which provides an approximate measure for thescope of assessment of internal control over business processes, we used a measure of approximately two-thirds of total sales and others for the selection of significant locations and business units.

[TRANSLATION][TRANSLATION]
Independent Auditor’s Report

Internal Control Report

June 27, 2014

1. Framework of Internal Control Over Financial Reporting		Masayuki Sato, Chairman and Representative Director, and Koichi Kawana, President and Representative Director of JGC Corporation

To the Board of Directors of JGC Corporation(“the Company”) are responsible for establishing and maintaining adequate internal control over financial reporting as defined in the rule

KPMG AZSA LLC“On the Revision of the Standards and Practice Standards for Management Assessment and Audit concerning Internal Control Over

Designated Limited Liability Partner,
Engagement Partner,
Certified Public Accountant: Kazutoshi Isogai

Financial Reporting (Council Opinions)”.
		Because of its inherent limitations, internal control over financial reporting (“ICOFR”) may not completely prevent or detect misstatements.

Designated Limited Liability Partner,
Engagement Partner,
Certified Public Accountant: Yoshihisa Uchida

2. Assessment Scope, Timing and Procedures		We have assessed our ICOFR as of March 31, 2014 in accordance with assessment standards for internal control over financial reporting

Designated Limited Liability Partner,
Engagement Partner,
Certified Public Accountant: Yoshinori Saito

generally accepted in Japan.
			We assessed the design and operation of our company-level control and based on this assessment, we analyzed business processes

within the scope of the internal control to be assessed, identified a key control that would have a material impact on the reliability of financial
reporting and assessed whether the basic components of internal control are operating with regard to the key control.
			

We assessed the effectiveness of ICOFR of the Company, consolidated subsidiaries and equity-method affiliates to the extent necessary

in light of their degree of impact on the reliability of financial reporting.
			

Audit of Consolidated Financial Statements

In assessing the effectiveness of internal control, we decided on reasonable scope of assessment for the significant business processes

in light of their degree of quantitative and qualitative impact on financial reporting based on the assessment of the company-level control.

Pursuant to the first paragraph of Article 193-2 of the Financial Instruments and Exchange Act in Japan (“the Act”), we have audited
the consolidated financial statements of JGC Corporation (the “Company”) and its consolidated subsidiaries included in the Financial Section,
namely, the consolidated balance sheet as of March 31, 2014, the consolidated statement of income, consolidated statement of comprehen-		Locations and business units that did not have a material effect on financial reporting were excluded from the scope of assessments.

sive income, consolidated statement of changes in net assets and consolidated statement of cash flows for the fiscal year from April 1, 2013 to			March 31, 2014, and a summary of significant accounting policies, other explanatory information and consolidated supplementary schedules.

In assessing the period-end financial reporting process, we decided on reasonable scope of assessment in light of its degree ofquantitative and qualitative impact on financial reporting in a similar manner as company-level control.
			In assessing the business processes other than described above, based on the assessment of the company-level controls, we assessed

Management’s Responsibility for the Consolidated Financial Statements

the significant business locations based on sales levels until combined sales amounts reach approximately two-thirds on a consolidated

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting

basis and the business processes which impact the accounts (sales, accounts receivable and inventory) that were closely associated withprinciples generally accepted in Japan, and for such internal control as management determines is necessary to enable the preparation of con-the significant business locations’ business objectives.

solidated financial statements that are free from material misstatements, whether due to fraud or error.

3. Results of Assessment

Auditor’s Responsibility		As a result of the above assessment, the Company’s management has concluded that, as of March 31, 2014, the Company’s ICOFR was effective.

Our responsibility is to independently express an opinion on these consolidated financial statements based on our audit. We conducted our

4. Supplementary Information

reasonable assurance about whether the consolidated financial statements are free from material misstatement.

Not applicable.
5. Other
Not applicable.

audit in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit to obtain
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on our judgment, including the assessment of the risks of material misstatement of the consolidated
financial statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, while the objective of the financial statement audit is not for the purpose of expressing an opinion on the effectiveness of the entity’s
internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

39
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Environmental Activities andContribution to Society

Competitive Advantages

Corporate Governance

Financial Section

JGC Group

JGC Group
As of March 31, 2014

OpinionIn our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of JGC Corporation andOthersTotal Engineering

Catalysts and Fine Products

its consolidated subsidiaries as of March 31, 2014 and their financial performance and cash flows for the year ended March 31, 2014,
in accordance with accounting principles generally accepted in Japan.
Audit of Internal Control
Pursuant to the second paragraph of Article 193-2 of the Financial Instruments and Exchange Act in Japan, we also have audited theCompany’s report on internal control over financial reporting of the consolidated financial statements of JGC Corporation as of March 31, 2014(“Internal Control Report”).
Management’s Responsibility for the Internal Control ReportManagement is responsible for the design and operation of internal control over financial reporting and the preparation and fair presentation of
the Internal Control Report in conformity with assessment standards for internal control over financial reporting generally accepted in Japan.
Internal control over financial reporting may not completely prevent or detect financial statement misstatements.
Auditor’s Responsibility

Our responsibility is to express an opinion on the Internal Control Report based on our internal control audit. We conducted our internal control

JGC Catalysts and Chemicals Ltd.

System Solution Services
	JGC INFORMATION SYSTEMS LIMITEDJGC CORPORATION

Equipment Procurement
JGC Trading & Services Co., Ltd.

JAPAN FINE CERAMICS CO., LTD.
	Nikki-Universal Co., Ltd.

Specialized Consulting Services
JAPAN NUS CO., LTD.
Office Support Services
NIKKI BUSINESS SERVICES CO., LTD.

JGC PLANT INNOVATION CO., LTD.

Water & Power Generation Business
JGC-ITC Rabigh Utility Co., Ltd.
JGC Mirai Solar Co., Ltd.

	Nikki-Universal Co., Ltd.

JGC PLANTECH AOMORI Co., Ltd.
	JMD Greenhouse-Gas Reduction
Co., Ltd.

Oil & Gas Production and Sales Business
JGC Energy Development (USA) Inc.
JGC Exploration Eagle Ford LLC
JGC EXPLORATION CANADA LTD.

Provision of products and services

JGC SINGAPORE PTE LTD
JGC PHILIPPINES, INC.
	PT. JGC INDONESIA

audit in accordance with auditing standards for internal control over financial reporting generally accepted in Japan. Those standards requireJGC Gulf International Co. Ltd.

that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the Internal Control

JGC OCEANIA PTY LTD

Non-consolidated, non-equity-method subsidiary

Report is free from material misstatement.

JGC America, Inc.

Equity-method subsidiary or affiliate

Consolidated subsidiary

An internal control audit involves performing procedures to obtain audit evidence about the assessment of internal control over financial

Non-equity-method subsidiary or affiliate

reporting in the Internal Control Report. The procedures selected depend on the auditor’s judgment, including significance of effect on the reliability of financial reporting. Also, an internal control audit includes evaluating the appropriateness of the scope, procedures and result ofTotal Engineering

the assessment determined and presented by management as well as evaluating the overall internal control report presentation.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

BusinessEngineering & Construction
Services

OpinionIn our opinion, the Internal Control Report, in which JGC Corporation states that internal control over financial reporting was effective as ofMarch 31, 2014, presents fairly, in all material respects, the assessment of internal control over financial reporting in conformity with assessment

CompanyCountry

CapitalCapital ShareJapan
Singapore
Philippines
Indonesia¥830,000,000
S$2,100,000
P340,000,000
US$1,600,000

100%
100%
100%
100%

JGC Gulf International Co. Ltd.

Saudi Arabia

SAR187,500,000

100%

A$1,000,000
US$10,100,000¥50,000,000¥1,000,000,000¥30,000,000

100%
100%
100%
50%
47%

* JGC PLANT INNOVATION 100%

Other

standards for internal control over financial reporting generally accepted in Japan.
Interest

The firm and the engagement partners do not have any interest in the Company for which disclosure is required under the provisions of
the Certified Public Accountants Act of Japan.

Maintenance Services
Process Licensing Services
Global Warming Gas-Emissions
Credits Business

Other

JGC PLANT INNOVATION CO., LTD.
JGC SINGAPORE PTE LTD
JGC PHILIPPINES, INC.
PT. JGC INDONESIAJGC OCEANIA PTY LTD
Australia
JGC America, Inc.
U.S.A.
JGC PLANTECH AOMORI Co., Ltd.
Japan
Nikki-Universal Co., Ltd.
JapanJMD Greenhouse-Gas Reduction Co., Ltd. Japan* JGC 70%
* JGC PLANT INNOVATION 30%* JGC 92%
* JGC SINGAPORE 8%

Catalysts and Fine ProductsCompany

JGC Catalysts and Chemicals Ltd.
JAPAN FINE CERAMICS CO., LTD.
Nikki-Universal Co., Ltd.

Country

Japan
Japan
Japan

CapitalCapital Share¥1,800,000,000¥300,000,000¥1,000,000,000

100%
100%
50%

CapitalCapital Share¥400,000,000¥40,000,000¥50,000,000¥1,455,000,000¥319,000,000¥445,000,000
US$128,000,000
US$65,000,000
C$105,885,000100%
24.50%
80%100%
55.43%
100%
100%
100%
100%

OthersBusiness

System Solution Services
Equipment Procurement
Specialized Consulting Services
Office Support Services
Water & Power Generation
Business
Oil & Gas Production andSales BusinessCompanyJGC INFORMATION SYSTEMS LIMITEDJGC Trading and Services Co., Ltd.
JAPAN NUS CO., LTD.
NIKKI BUSINESS SERVICES CO., LTD.
JGC-ITC Rabigh Utility Co., Ltd.
JGC Mirai Solar Co., Ltd.
JGC Energy Development (USA) Inc.
JGC Exploration Eagle Ford LLC
JGC EXPLORATION CANADA LTD.

Country

Japan
Japan
Japan
Japan
Japan
Japan
U.S.A.
U.S.A.
CanadaOther

40
About JGC

Financial Highlights

To Our Stakeholders

Special Feature

Review of Operations

Competitive Advantages

Environmental Activities andContribution to Society

Corporate Governance

Financial Section

JGC Group

Outline of JGC
As of March 31, 2014

Established

Domestic Offices

October 25, 1928

Capital¥23,511,189,612

Number of Employees

2,238 (Consolidated: 7,005)
Number of shares(Thousands)

Percentage of total(%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

21,373

8.25

Japan Trustee Services Bank, Ltd. (Trust Account)

18,731

7.23

JGC Trading and Services Co., Ltd.

12,112

4.67

Sumitomo Mitsui Banking Corporation

11,0004.24

JGC-S SCHOLARSHIP FOUNDATION

8,433

3.25

Mizuho Bank, Ltd.

5,700

2.20

NORTHERN TRUST CO. (AVFC) SUB A/C NON TREATY

4,168

1.60

CBNY–SCOUT INTERNATIONAL FUND

3,571

1.37

BNP Paribas Securities Limited

3,155

1.21

State Street Bank and Trust Company 505223

3,127

1.20

Major Shareholders

JGC’s treasury stock holdings total 6,639 thousand shares, approximately 2.56% of total shares issued.

Authorized Shares

600,000,000

Issued and Outstanding
Shares259,052,929

Number of Shareholders

8,378

Administrator of the
Shareholders’ Register

Mitsubishi UFJ Trust and Banking Corp.
1-4-5, Marunouchi, Chiyoda-ku, Tokyo 100-8212, Japan

Life and non-life insurance corporations 3.08

	Jakarta OfficeSentral Senayan 3, 13 Fl, Unit 313 C,
JL. Asia Afrika No. 8, Gelora Bung
Karno-Senayan,
Jakarta-Pusat 10270, Indonesia
Tel: 62-21-2997-6565
Fax: 62-21-2932-6580

Individuals and others 6.05

Figures have been rounded to two decimal places.

JGC Stock Price (Yen)
5,000

Nikkei Stock Average (Yen)
50,00040,0004,000
JGC Stock Price

3,000

30,00020,000

2,000
1,000

10,000

Nikkei Stock Average00Volume (Thousands of shares)
80,00060,00040,00020,000
0
2011
1 2

3

4

5

6

7

8

2012
9 10 11 12 1 2

3

4

5

6

7

8

Research & Development Center
2205, Narita-cho, Oarai-machi,
Higashi Ibaraki-gun, Ibaraki Pref.
311-1313, Japan
Tel: 81-29-266-3311
Fax: 81-29-266-3310

	Beijing Office
Unit 1012 / 1015, North Tower,
Beijing Kerry Centre,
1 Guanghua Road,
Chaoyang District, Beijing,
100020, China
Tel: 86-10-6518-3001
Fax: 86-10-6518-3006

Financial instruments firms 3.97

Stock Price	Kamiooka Office
1-13-1, Saido, Kounan-ku,
Yokohama 233-8550, Japan
Tel: 81-45-682-1111
Fax: 81-45-682-1112

Asia

Trust banks (including trust accounts) 24.29

Treasury stock 2.56

	MM Park Building Office
3-6-3, Minato Mirai, Nishi-ku,
Yokohama 220-0012, Japan
Tel: 81-45-682-1111
Fax: 81-45-682-1112

Overseas Offices

Banks 7.78

Foreign investors
39.82

Yokohama World Operations Center
2-3-1, Minato Mirai, Nishi-ku,
Yokohama 220-6001, Japan
Tel: 81-45-682-1111
Fax: 81-45-682-1112

	Osaka Office3-1-18, Kitahama, Chuo-ku,
Osaka 541-0041, Japan
Tel: 81-6-6208-0260
Fax: 81-6-6208-0265

Distribution of Shareholders (%)
Other domestic
corporations 12.44

	Tokyo Corporate Office
New Ohtemachi Bldg.,
2-2-1, Ohtemachi, Chiyoda-ku,
Tokyo 100-0004, Japan
Tel: 81-3-3279-5441
Fax: 81-3-3273-8047

2013
9 10 11 12 1 2

3

4

5

6

7

8

2014
9 10 11 12 1 2

3

4

5

6

	JGC KOREA CORPORATION
Lotte Kwanak Tower 5th Floor,
395-67, Shindaebang-Dong,
Dongjak-Gu, Seoul, Korea
Tel: 82-2-831-7316
Fax: 82-2-831-7317

	JGC Engineering Consultants(Shanghai) Co., Ltd.
Suite 1503-1504, POS-PLAZA,
1600 Century Avenue, Pudong
New Area, Shanghai 200122, China
Tel: 86-21-5058-9881
Fax: 86-21-5058-9880
	JGC VIETNAM COMPANY LIMITED
Unit 1709, 17F, Keangnam
Hanoi Landmark Tower,
Me Tri, Tu Liem, Hanoi, Vietnam
Tel: 84-4-3794-0520
Fax: 84-4-3794-0522
	JGC PHILIPPINES, INC.
2109 Prime Street,
Madrigal Business Park,
Ayala Alabang, Muntinlupa City,
Philippines 1780
Tel: 63-2-876-6000
Fax: 63-2-807-0668
	TECHNOSERVICECONSTRUCTION CO., INC.
19th Floor, Export Bank Plaza,
Chino Roces Avenue, Corner Sen,
Gil Puyat Avenue, Makati City,
Philippines
Tel: 63-2-889-9440
Fax: 63-2-845-4533
	JGC (MALAYSIA) SDN. BHD.
Level 14 Tower 2, Etiqa Twins, 11
Jalan Pinang, 50450 Kuala Lumpur,
Malaysia
Tel: 60-3-2161-2155
Fax: 60-3-2161-0539
 GC SINGAPORE PTE LTD
J
31 International Business Park,#01-12, Singapore 609921
Tel: 65-6-227-0122
Fax: 65-6-227-0358
	JGC CONSTRUCTION
INTERNATIONAL PTE. LTD.
31 International Business Park,#01-12, Singapore 609921
Tel: 65-6-561-1255
Fax: 65-6-561-1767
	PT. JGC INDONESIA
Jl. TB Simatupang 7-B, Jakarta
12430, Indonesia
Tel: 62-21-2997-6500
Fax: 62-21-2997-6599

Oceania	Perth Office
Level 50, 108 St Georges Terrace,
Perth, WA 6000, Australia
Tel: 61-8-9222-5555
Fax: 61-8-9222-5556
	JGC OCEANIA PTY LTD
Level 50, 108 St Georges Terrace,
Perth WA 6000, Australia
Tel: 61-8-9222-5555
Fax: 61-8-9222-5556

Middle East	Abu Dhabi Office
Office No. 305, 3rd Floor,
Al Salam Building,Junction of Zayed the 1st St.
/ Al Salam Road P.O. Box 28543
Abu Dhabi, U.A.E.
Tel: 971-2-6443-335
Fax: 971-2-6444-204
	Doha Office
Office No. 201, GREDCO 1 Building,
C-Ring Road, P.O.Box 21371,
Doha, State of Qatar
Tel: 974-4467-6554
Fax: 974-4435-2051
	Kuwait Office
Al-Madeena Tower 2, 5th Floor,
Kuwait City, Qibla Area, Block 11,
Plot 42, State of Kuwait
Tel: 965-2291-5650
Fax: 965-2291-5660
	Basra Office(Undisclosed)	Baghdad Office(Undisclosed)
	JGC Middle East FZE(Jebel Ali Head Office):
Office No. LB13124
P.O. Box 18414, Jebel Ali,
Dubai, U.A.E.
Tel: 971-4-8812102
Fax: 971-4-8873102(Doha Branch):
Office No. 201, GREDCO 1 Building,
C-Ring Road, P.O.Box 21371,
Doha, State of Qatar
Tel: 974-4467-6554
Fax: 974-4435-2051(Delhi Branch):
Unit 201, Second Floor, Time Tower,
M.G. Road, Sector 28,
Gurgaon-122002, Haryana, India
Tel: 91-124-488-3550
Fax: 91-124-488-3560
	JGC Arabia Limited
P.O. Box 2414, Al-Khobar 31952,
Saudi Arabia
Tel: 966-3-896-5055
Fax: 966-3-896-5056
	JGC Gulf International Co. Ltd.
P.O. Box 2257, Al-Khobar 31952,
Saudi Arabia
Tel: 966-3-896-5060
Fax: 966-3-896-5071

Europe / CIS	Almaty Office050059 Almaty Samal-2
Microdistrict Bldg.
56A Office 203, Kazakhstan
Tel: 7-727-263-5185
Fax: 7-727-263-5187
	Moscow Office
12, Trubnaya street,
107045 Moscow, Russia
Tel: 7-495-795-0624
Fax: 7-495-787-2767

	Paris Office
17 Rue de Quatre Septembre,
75002 Paris, France
Tel: 33-1-4477-4300
Fax: 33-1-4477-4311
	JGC Italy S.r.I.
Via Lallio n.35. Frazione Sforzatica
24044-Dalmine (BG), Italy
Tel: 39-035-373705
Fax: 39-035-373728
	JGC CORPORATION (UK) LIMITED401 Marble Arch Tower,
55 Bryanston St., London,
W1H 7AA, U.K.
Tel: 44-20-7868-8012
Fax: 44-20-7868-8011

Africa	Alger Office
Boulevard du 11 decembre 1960,
Lotissement No.6, El-Biar,
Alger, Algerie
Tel: 213-21-91-2366
Fax: 213-21-94-5728
	JGC Algeria S.p.A
Boulevard du 11 decembre 1960,
Lotissement No.6, El-Biar,
Alger, Algerie
Tel: 213-21-91-2366
Fax: 213-21-91-2285
	JGC NIGERIA LIMITED
Block 1, Flat 6, Zion Court,
No.1 Samuel Adedoyin Street,
Ikate Lekki, Lagos, Nigeria
Tel: 234-1-4630603

The Americas
	JGC America, Inc.
3151 Briarpark Drive, Suite 400,
Houston, TX 77042, U.S.A.
Tel: 1-713-243-1299
	JGC Energy Development (USA) Inc.
(JEDI)
10370 Richmond Avenue, Suite 810,
Houston, TX 77042, U.S.A.
Tel: 1-832-487-9965
Fax: 1-832-487-9973
JGC VENEZUELA C.A.
Edificio Bancaracas Piso 6,
Oficina 6-06,
Av. San Felipe con 2da Calle,
La Castellana, Caracas, Venezuela
Tel: 58-212-266-9155
Fax: 58-212-265-9231