“Beyond the Horizon” - JGC Corporation

1 1 beyond the Horizon - 1st Stage of Growth Strategy Toward Attaining the Corporate Vision -Masayuki SatoChairman and Representative Director JGC CorporationMay 12, 2016 New Medium-Term business plan (FY2016-20) beyond the Horizon Contents21. Overview of Previous Medium-Term business Plan2. Positioning of New Medium-Term business Plan3. Assumptions for plan (1)4. Assumptions for plan (2)5. Targeted Direction and business Areas6. Numerical Goals7. Basic Policies8. Basic Policies / Related Strategies9. Shareholders Return Policy10. Corporate Governance Responses345679101122232 beyond the Horizon Overview of Previous Medium-Term business PlanNew Horizon into Program Management Contractor & Investment Partnerthat goes beyond conventional engineering contractor1.

2 business strategy EPC plus actively pursuebusiness investments Develop new EPC areas(F-LNG, non-ferrous, etc.) Economic growth by emerging countries High crude-oil price Advances by shale oil and gas developmentsUnexpectedenvironmentchanges Take advantage of market changes to expand sales and profit2. Numerical goals 50 billionNet ProfitROEFY2011 least 10 FY2015 Net Profit: % beyond the Horizon Positioning of New Medium-Term business Plan4 beyond the Horizon Five-year growth strategy as the 1st Stage of a 10-year plan toward realization of the corporate visionProgram Management Contractor&Investment Partner1st StageBeyond the Horizon2nd StageNext Medium-TermBusiness direction and business areas in the 10 years from now3 beyond the Horizon Assumptions for plan (1)51.

3 Market outlookMedium-to-long-term outlook: Restoration of tight crude-oil and LNG market conditions leads to recovery of plant market2. Mu ltifaceted response to market changes(1) Importance of overcoming near-term market environment(2) Steady implementation of measures for transformation to corporate visionRequires rational view of current conditions andstrong resolve to realize the planLiquids Demand by Sector196520002035(Mb/d)706050403020100 TransportIndustryOtherPowerSource: BP Outlook 2016 Gas Supply by Source201020202030(BCFD)6005004003002001 000 LNGP ipelineLocal productionSource: Exxon Mobil Outlook 201620403.

4 beyond the Horizon Assumptions for plan (2)6 JGC Group s core competenceStandards for determining direction andbusiness areas in the new medium-term business plan Changes in marketenvironmentCore competencePreference for business areas with continuity and potential for maximum utilization of core Market environmentIdentify environment changes andpursue business areas as opportunitiesJGC Group s core competenceUpdates to market environment global performance based on delivery capabilities for completing complex, advanced projects in difficult conditions as an EPC contractor in the hydrocarbon downstream talented human-resource group with robust technology and management capabilities that can integrate people, goods.

5 And information on a global scale as well as expand EPC business scope and pursue new business and knowhow as a business operating firm accumulated through 10 years of business investment experience financial base and robust capital resources that enables further growth strategy change in the trend of growing demand for hydrocarbon energy mainly in emerging countries over the longer of a new EPC market in light of political changes in Central Asia, Iran, and progress in utilization of renewable energy spurred by growinginterest in global environment urbanization worldwide and growing infrastructure (electricity, transportation) demand fueled by population increases and economic advances in emerging of drug and medical needs in China and Southeast Asian sophisticated requirements in resource development plans forproject implementation capabilities in 3D (Difficult, Deep, Distance)

6 Revolution advances using IT technologies, such as IoT that leverages Big beyond the Horizon Targeted Direction and business Areas7 Mainly Oil & Gas, Broaden to InfrastructureDirection targeted for 10 years from now to 2025 EPCU pstreamDownstreamInfrastructureBusiness investments:Mainly infrastructureServices: Enter overseas plant O&M servicebusinessCovered business areasEPC BusinessBusiness InvestmentsOil & GasUpstreamCrude oil/gas gatheringGas-oil separation, offshoreDownstreamLNG and gas processingOil refining, petrochemicalsLNG terminalsInfrastructureEnergy infrastructurePower Generation(Fossil fuels)

7 Nuclear powerRenewable EnergySocial infrastructurePharmaceuticalMedicalAirpo rtsIndustrial infrastructureNon-ferrousManufacturingIn tegrated water and power IWPP Environmental and new energyMedical, Airports, , fine chemicalsFine ceramicsServicesDomestic plant maintenance serviceOverseas plant O&M5-1. beyond the Horizon 60%from oil & gas,20%from infrastructure, and20%from business investmentsRatios by business Area (Based on Adjusted Operating Profit*)8 Aiming forby FY2025FY2015FY2020FY2025 business investmentsincluding catalysts and fine chemicals8%Infrastructurenon-hydrocarbon energy, industry/social5%Oil & Gas87%Oil & Gas75%Oil & Gas60% business investmentsincluding catalysts and fine chemicals10% business investmentsincluding catalysts and fine chemicals20%Infrastructurenon-hydrocarbo n energy, industry/social10%Infrastructurenon-hydr ocarbon energy, industry/social20%Targeted Direction and business Areas5-2.

8 Adjusted Operation Profit Operating profit plus interest income, dividend income and share of profit of entities accounted for using equity method earned in each business beyond the Horizon Numerical Goals9 beyond the HorizonSalesFY2015 Net ProfitROE billionFY3/16 results least 1,000 billion 60 billionAt least 10% beyond the Horizon Basic Policies10 Efficiently utilize shareholders equity;Expand EPC business in oil & gas area,broaden to infrastructure, andachieve higher business investment profitsExpand EPC business in oil & gas area and broaden to infrastructureBasic Policy 1 Expand profit from non-EPC businesses ( business investments, manufacturing)Basic Policy 2 Promote financial strategy to realize basic policies 1 and 2 Basic Policy 3 Strategy 1: Expand the marketStrategy 2: Strengthen project implementation capabilitiesStrategy 3: Expand business areasStrategy 4.

9 Reinforce orders competitiveness by pursuing technology beyond the Horizon 11 Oil & Gas EPC = JGC Group s core businessNeeds further reinforcement and expansion Basic Policy 1: Expand EPC business in oil & gas area and broaden to infrastructureStrategy 1:Expand the marketFurther reinforcement and expansion of EPC business likelyto be difficult without market expansionExisting marketsJapanSoutheast AsiaMiddle East(Gulf countries)North AfricaNorth AmericaRussiaDevelopment marketsExpansion marketsEast AfricaCentral AsiaMiddle East (Iran, Iraq) +Existing marketNew Policies / Related Strategies beyond the Horizon MarketingFS/FEED Engineering Procurement Construction O&MPMS12(1)

10 Domestic/overseas EPC strategy at JGC/Group Strengthen JGC headquarters control capabilities Bolster and expand functions at JGC Group companies Respond collaboratively to individual deals(2)Promote joint efforts with broadrange of JV partners Select optimal partner for individual projects Partners that offer benefits from standpoint ofcustomers, countries, technologies, and costs Broad collaboration with European, Korean,Chinese, and Japanese contractorsJPI, J-Indonesia, J-Philippine, J-Singapore, J-Vietnam, JCON, TCCI, J-Algeria, J-Gulf, J-AmericaPursue qualitative capability enhancement at JGC / JGC Group companies and carry out resource expansion measures to strengthen project implementation capabilitiesStrategy 2.