The following statement is an English-language translation of the original Japanese-language document
provided for your convenience. In the event there is any discrepancy between the Japanese and English
versions, the Japanese version is presumed to be correct.

November 8, 2018
To whom it may concern:
Company name: JGC Corporation
Representative: Masayuki Sato
Chairman and Chief Executive Officer (CEO)(Code number: 1963, Stock Exchange: Tokyo)
Contact: Takeshi Endo
General Manager, PR & IR Department(TEL: 81-45-682-1111)

Review Now Underway Toward Reforming
JGC Group Management Structure
As decided in our Board of Directors meeting today, a review is now underway
toward reforming the group management structure to a holding company structure,with plans to make this change effective as of October 1, 2019.
The reform will be enacted pending approval at the general meeting of shareholders(to be held in late June, 2019) and after obtaining approval from government agencies
with jurisdiction, as needed. Further details will be provided at appropriate times oncethe matter is decided.
JGC will remain a listed company after the transition to a holding company.

1. Background and Purpose
Within our main business of EPC operations, the Beyond the Horizon mediumterm business plan for fiscal 2016–2020 calls for an ongoing focus on the oil andgas sector while expanding further into the field of infrastructure. In non-EPC
operations, the plan calls for stronger involvement in manufacturing, among othertypes of business. Further growth and expansion are sought in both areas ofoperations.
To pursue this vision of a corporate group with greater corporate value steadily,
but with a sense of speed, we have started the process of reviewing our transition
to a holding company as the group’s new management structure.

12. Purpose and Nature of Reform
For the purpose of securing both sales and profit expansion and stabilization, weare seeking to transition to a holding company structure in order to grant more
independence to future primary business divisions, to enable more proactive, agile
business operations, and to bring about globally optimal resource allocation andaccurate governance of group management.

1) Strengthening group management and governance
Separation of corporate management from executive organizations will enable
the holding company to fulfill the functions of establishing management policyand coordinating our operating companies, based on a medium to long-term
perspective for the JGC Group, as we seek maximum corporate value andgroup-minded allocation of management resources. By clarifying the divisionof holding company and operating company roles and responsibilities, and by
reinforcing coordinating functions, this separation also supports greatertransparency of corporate management and stronger governance of the group asa whole.

2) Building a market-responsive framework for EPC operations
More proactive, agile business operations will be sought by building anoperations framework attuned to the respective characteristics of the domestic
market and the overseas market for EPC business—specifically, separate
operating companies in charge of domestic EPC and overseas EPC.

(1) Overseas oil and gas
Further growth in this main JGC Group business is sought by establishing a morefine-grained framework for project execution which can respond promptly in theoverseas oil and gas business where market volatility is high and projects havebecome larger and more complex.
(2) Overseas infrastructure
Greater expansion by means of a new pillar of EPC business is sought throughthe appropriate allocation of management resources by an independent business
unit within the overseas EPC operating company, established to venture further
into infrastructure as identified in the medium-term business plan.
(3) Domestic EPC
In the domestic market (which is in a relatively stable business environment,
2compared to overseas markets), expansion of business areas and market share inboth oil and gas and infrastructure is sought by consolidating the management
resources of JGC domestic operations and those of the wholly owned subsidiary,
JGC Plant Innovation (JPI), yielding greater efficiency and competitiveness.

3) Clarifying how manufacturing business is positioned
The status of manufacturing—positioned as a core group business—will beclarified, and optimal management resources as a group will be allocated, as we
promote technical development that can meet next-generation social andindustrial needs and step up the supply of high-performance materials.

4) Bolstering manager training
Delegating authority to operating companies will expand the roles andresponsibilities of managers at each company. We will seek to build thefoundation to develop managers to lead these operations.

3. Process of Transitioning, Image of New Group Management Structure
Review of the following structure is currently underway. Further details will beprovided at appropriate times as each matter is decided.
Overseas and domestic EPC business will be divided between respective
operating companies. JGC will fulfill the functions of establishing group strategies
and coordinating the activities of the operating companies.
EPC and maintenance operations in Japan will be managed by a domestic EPC
operating company formed by merging a JGC spin-off and JPI, which will be thesuccessor company.
As for overseas EPC operations, we are studying an optimal management planand arrangement. An overseas EPC operating company will be established thatconsists of both an oil and gas company and an infrastructure company. Each subcompany will conduct its operations separately and they may eventually become
independent operating companies.

34. Future Schedule・ Early May 2019 (estimate): Board of Directors meeting to determine
corporate separation
・ Late June 2019 (estimate): General meeting of shareholders to approve
corporate separation
・ October 1, 2019 (estimate): Separation takes effect and is registered4