Online Financial Results Briefing for Fiscal Year 2020

from the beginning

Outline of Financial Results for Fiscal Year 2020

Presenter：

Shinichi Taguchi
General Manager, Group Finance & Accounting Department

• Contents

• 1. Highlights of Fiscal Year 2020

• 2. Income and Comprehensive Income

• 3. Segment Information

• 4. Balance Sheets

• 5. Cash Flows

• 6. Outline of Contracts
  ⅰ）New Contracts

• ⅱ）Outstanding Contracts

• 7. Forecasts for Fiscal Year 2021

Appendix

• Forecasts for Fiscal Year 2021 by segment

• Net sales & New Contracts by Region

• Historical data chart

Cautionary Statement

Business Overview

Presenter：

Tadashi Ishizuka
Representative Director, President and Chief Operating Officer (COO)

• Contents

• 1. Project Orders for FY2020

• ２. Total Engineering

• ３. Functional Materials Manufacturing

Notes on Future Outlook

JGC Group Long-term management vision 2040 Vision

Presenter：

Masayuki Sato
Representative Director, Chairman and Chief Executive Officer (CEO)

• Executive Summary

• Contents

Purpose of the JGC Group

• Purpose of the JGC Group

• Enhancing planetary health

Social issues that JGC Group will focus on

• Pursuing both a stable energy supply and decarbonization

• Reducing the environmental impact of resource consumption

• Building and maintaining vital infrastructure and services

• Social issues that JGC Group will focus on

2040 vision of the JGC Group

• 2040 Vision of the JGC Group

• Sales contribution by business areas and models

Overview of transformation supporting the 2040 Vision

• Three aspects of transformation supporting the 2040 vision

• Path to business area expansion

• Target level of operating income

Business area transformation

• Core business area: Overview of energy transition

• Core business area: Energy transition - low-carbon / decarbonized Oil & Gas

• Core business area: Energy transition - clean energy

• Growth business area: Healthcare / Life sciences

• Growth business area: High-performance functional materials

• Future business area: Circular economy, Industrial & Urban infrastructure

Business model transformation

• Toward a more sustainable EPC business model and diversification in non-EPC models

• Measures for transformation of EPC business model: Initiatives using digital technologies

• Business model diversification

Organizational transformation

• Stronger framework for regional management

• More vibrant culture of innovation

• Commitment to carbon neutrality by 2050

• Group message

Cautionary Statement

JGC Group FY2021-2025 Medium-Term Business Plan (BSP 2025)

Presenter：

Tadashi Ishizuka
Representative Director, President and Chief Operating Officer (COO)

• First phase toward 2040 vision: Five years of challenge

• Executive Summary

• Contents

Review of previous medium-term business plan (FY2016-FY2020)

• Summary

• Business results

Awareness of business environment

• Energy transition

• High-performance functional materials manufacturing

• Healthcare / Life sciences, Circular economy, Industrial & Urban infrastructure

Key strategies

• Three key strategies pursued over five years of challenge

Key strategies
Transformation of EPC operations

• Increasing competitiveness and profitability in mega-sized EPC projects

• Example Promoting EPC DX utilizing AI for design and AWP for project execution

• Taking on EPC growth markets and segments

Key strategies
Expansion of manufacturing business for high-performance functional materials

• Offering more product line-ups in existing business to increase our revenue base

• Example JGC Catalysts and Chemicals: Expansion of core business

• Expanding sales of strategic products

• Example JGC Catalysts and Chemicals, Japan Fine Ceramics:Expanding sales of strategic products

• Exploration and development of next-generation business

• Example Japan Fine Ceramics:Exploration and development of next-generation business

Key strategies
Establishment of future engines of growth

• Establishing new business as primary sources of future revenue

• Offshore wind power

• Blue hydrogen / fuel ammonia

• Chemical recycling

Investment strategy

• Investment for the three key strategies

Talent and organization

• Accelerating personnel realignment and expansion

• JGC Group innovation organization

Financial targets

• Expanding and diversifying revenue by FY2025

Capital and shareholder return policies

• Basic capital policy: Strategic investments while maintaining sound finances

• Financial strategy: Secure strategic investment funds by effective use of cash in hand

• Shareholder return policy: Newly introducing a minimum dividend

ESG initiatives

• Transforming and expanding in business areas that enhance planetary health

JGC Group commitment to carbon neutrality by 2050

• Toward net-zero CO2 emissions by 2050

• Enhancing planetary health

Cautionary Statement