JGC : Long-term management vision 2040 Vision

JGC Group

Long-term management vision

2040 Vision

May 12, 2021

JGC Holdings Corporation

	Executive Summary
			Enhancing planetary health
	Purpose
						Background of 2040 Vision
		Responding to a rapidly changing business environment Achieving long-term growth with a grasp of social changes
		A corporate group that contributes			Three aspects of transformation supporting the 2040 vision
		to enhancing planetary health in
		five business areas
		Energy transition					Responding to the energy transition,
			Business areas	Focused on Oil & Gas
	2040 Vision		expanding our business areas
	Healthcare / Life sciences
				Focused on EPC and	Transformation of EPC business model,
		High-performance			BusinessBusine smodelsmodels
				manufacturing models	diversifying to non-EPC models
		functional materials
					Managed mainly from Japan;
		Circular economy				Strengthening our regional
				Organization	organization designed for
						execution of Mega-sized EPC	management framework and
		Industrial & Urban infrastructure				projects	fostering a culture of innovation
				¥150-200 billion
	Target		FY2040 operating income*
			* Adjusted Operating Income: Operating income plus interest income, dividend income and share	2
			of profit of entities accounted for using equity method earned in each business area

Contents

	Purpose of the JGC Group	P.4
	Social issues that JGC Group will focus on	P.7
	2040 vision of the JGC Group	P.12
	Overview of transformation supporting the 2040 Vision	P.15
	Business area transformation	P.19
	Business model transformation	P.26
	Organizational transformation	P.30
	Commitment to carbon neutrality by 2050	P.33
	Group message	P.34

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Purpose of the JGC

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Purpose of the JGC Group

Historical roles since the company was founded

Supporting the foundations of industry and society at large, at the crossroads of challenges in

balancing energy and environmental needs

I want the company to be a presence that supports the foundation of industry as well as society regardless of era

Founder Masao Saneyoshi

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Purpose of the JGC Group

2040 vision - what we aspire to be

Enhancing planetary health

We remain committed to our traditional mission of creating a more prosperous future, which has been

redefined to reflect our purpose of enhancing the intertwined health of humans and the Earth.

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Social issues that JGC Group

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Social issues that JGC Group will focus on

Pursuing both a stable energy supply and decarbonization

Global primary energy demand by 2040:	A critical stage in climate change measures	Renewable power by 2040:
17.1 billion toe*	3.3 billion toe*

Greater energy demand is expected, driven by a swelling global population and economic growth.

Limiting the increase in average temperature relative to pre-industrial levels to 1.5°C will require reducing CO2 emissions effectively to zero by 2050.

A growing awareness of climate change issues is behind the global trend toward less carbon and even net-zero carbon.

*toe: ton of oil equivalent	8
Source: IEA World Energy Outlook 2020

Social issues that JGC Group will focus on

Reducing the environmental impact of resource consumption

Higher CO2 emissions from manufacturing	Global waste by 2050:
processes	3.4 billion tons/year
Greater consumption associated with global	Rising consumption also continues to generate
economic growth will exacerbate the impact of	more waste.
CO2 emissions throughout manufacturing
processes.

Source: World Bank, A Global Snapshot of Solid Waste Management to 2050

Adverse effects from pollution on ecosystems and human health

Non-biodegradable plastics in particular raise concerns for ecosystems and human health.

Resources with a lighter environmental footprint that limit the generation of new waste must be

used.9

Social issues that JGC Group will focus on

Building and maintaining vital infrastructure and services

Urbanization in Asia, Africa:	Greater medical capacity,
66% of the population	especially in emerging economies
Asia, Africa, and other emerging regions will see	Development of medical infrastructure and better
an accelerated urban influx as their economies	healthcare will be in higher demand, especially in
grow, which will drive demand for industrial and	emerging markets with growing economies.
industrial and urban infrastructure.

Source: United Nations, World Urbanization Prospects

National Institute of Population and Social Security Research "Japan's Future Population Estimate"

Percentage of the population

65 or older: 35% (Japan)

Needs for personalized and preventive medicine will increase in Japan and other developed economies as birthrates decline and populations age.

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