May 12, 2021

Long-Term Management Vision “2040 Vision”
Executive Summary
1.

Purpose of the JGC Group

Since the JGC Group’s founding in 1928, we have changed with the times in supporting
industry and society at large. The JGC Group business has always stood at thecrossroads of issues that must be faced to balance the need for energy with theenvironment.
Change is now sweeping through the business environment where the JGC Groupoperates. For the Group to continue to enjoy sustained growth, we must respond swiftlyand flexibly to these current trends while transforming ourselves based on the global,
long-term perspective of enhancing planetary health and a shared sense of this purpose
among the stakeholders the Group brings together.
“Enhancing planetary health” – contributing to a healthy future for people and theEarth – now serves as the reason for the Group's existence. This sense of purpose has
guided us in establishing “2040 Vision”, our long-term management vision.

2.

2040 Vision of the JGC Group

Guided by our purpose of enhancing planetary health, the JGC Group will pursue thevision for 2040 by applying proven capabilities and experience to address the threesocial issues of managing both energy stability and decarbonization, reducing theenvironmental impact of resource consumption, and building and maintaining vital
infrastructure and services.
Working toward these solutions, we will be diversifying operations into the following
five (5) areas and transforming into a corporate group that contributes to enhancing
planetary health.

Business areas:• Energy transition• Healthcare / Life sciences• High-performance functional materials• Circular economy• Industrial & Urban infrastructure1

3.

Three aspects of the transformation

The JGC Group has enjoyed sustained growth through constantly evolving, and now thedecisive transformation we are taking on marks a major turning point: thetransformation of our business areas, business models, and organization.

3.1 Business area transformation
As we make steady progress in expanding JGC Group business into five areas, thislong-term transformation will occur over three phases, in consideration of factors
such as when our investments will come to fruition. The course we have charted willtake place in three phases: “five years of challenge” (2021–2025) focused on our corebusiness in energy transition, “five years of harvesting” (2026–2030) the fruit ofefforts in the growth businesses of high-performance functional materials
manufacturing and healthcare / life sciences, and “ten years of rapid growth” (2031–2040) as we add the future business of circular economy and industrial & urban
infrastructure as pillars of business.

2

We will take the following courses of action in five (5) business areas:⚫ Energy transition
Adopt low-carbon / decarbonization practices in the Oil & Gas sector and expand
clean energy, for a net-zero society.
⚫ Healthcare / Life sciences
Further develop segments providing pharmaceuticals and hospitals domestically aswell as in emerging economies, to promote health through medical care.
⚫ High-performance functional materials
Develop and produce unmatched high-performance functional materials in growth
segments, applying core technologies.
⚫ Circular economy
Cultivate markets and build ecosystems supporting circular economy for asustainable society.
⚫ Industrial & urban infrastructure
Provide environmentally conscious industrial & urban infrastructure integrating
multiple systems.

3.2 Business model transformation
In EPC business, we will implement our “IT Grand Plan 2030” and “EPC DX” inparticular for the transformation of the EPC business model. We will seek businessmodel expansion upstream and downstream in the value chain, building on ouraccumulated experience, and establishing new business models applying digital3

technologies.
In the area of non-EPC business models, while reinforcing our existing highperformance functional materials production, we will undertake transformation thatleverages JGC Group strengths such as in licensing, PMC and other consulting,
maintenance and digital O&M, digital platform business, as well as participation in
new business.

3.3 Organizational transformation
To guide the transformation of our business areas and business models steadily
toward success, we will also promote organizational transformation. Here, we will
focus on strengthening our framework for “regional management” to solve local
social issues and fostering a “culture of innovation” to develop new technologies andbusiness more rapidly and creatively.

4.

Target level for operating income

Through our transformation, we envision the Group will generate operating income of¥60 billion by 2025, ¥100 billion or more by 2030, and ¥150–200 billion by 2040. We
will also make strategic investments for greater revenue over the long term.

The transformation of our business will be complete by 2040, when our diversified
portfolio will reflect these changes.
4Group message
In establishing the 2040 Vision, the JGC Group makes the following three commitments
to all stakeholders over a period of 20 years. For the JGC Group to transform itself,achieve sustainable growth, and fulfill a valuable role in society, nothing is more
important than for us to continue to provide an environment for all engaged in and withthe Group to work with high motivation.
1. We will foster a culture that challenges the unknown and encourages innovation
2. We will work toward a shared purpose, and maintain a tradition of mutual respect
3. We will create an environment where exchanges of diverse ideas from a vibrant
workforce results in positive outcomes and new values5