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Outline of Half Year Financial Results for Fiscal Year 2021

April 1, 2021 - September 30, 2021

November 11, 2021

JGC HOLDINGS CORPORATION

My name is Shinichi Taguchi, and I am General Manager of the Group Finance and Accounting Department.

I will be giving you an outline of financial results for the period of six months ended in September 2021, in other words, the first half of fiscal year 2021, which ends in March 2021.

Contents

1. Highlights of Fiscal Year 2021 1H
2. Income Statement
3. Segment Information
4. Balance Sheets
5. Cash Flows
6. Outline of Contracts
7. Forecasts for Fiscal Year 2021

© 2021 JGC HOLDINGS CORPORATION

Enhancing planetary health

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1. Highlights of Fiscal Year 2021 1H

• Raising profit ratio in Total Engineering segment due to steady execution in both domestic and overseas projects
• Higher sales and profit in Functional Materials Manufacturing segment benefitted from demand recovery
• Final settlement of the dispute with the client concerning the Ichthys LNG project

© 2021 JGC HOLDINGS CORPORATION

Enhancing planetary health

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I will begin with a review of the highlights of the first half.

In the Total Engineering segment, profitability improved for several projects due to steady execution, and the profit margin was higher than initial forecasts.

In the Functional Materials Manufacturing segment, demand continued to recover, primarily in the fine chemicals area, and sales and income are on a clear upward trajectory.

In negotiations with the client on the Ichthys LNG project, we recently reached a settlement through a final agreement, and were able to reach a resolution that was within the scope of the extraordinary loss posted in the first quarter.

2. Income Statement

				【Unit: Billions of Yen】
		FY2020 1H	FY2021 1H		Difference
	Net sales	199.4	217.9	+18.5
	Gross profit	21.5	20.8		△ 0.7
	Profit ratio	10.8%	9.6%		△ 1.2pt
	Operating profit	11.5	10.3		△ 1.1
	Ordinary income	11.9	12.6	+0.6
	Profit/loss attributable to	3.9	△ 48.4		△ 52.4
	owners of parent
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© 2021 JGC HOLDINGS CORPORATION

We now move to the Statement of Income.

Net sales rose 18.5 billion yen over the same period of the previous fiscal year to 217.9 billion yen.

Gross profit decreased 700 million yen to 20.8 billion yen. Operating profit fell 1.1 billion yen to 10.3 billion yen.

Income declined due to a substantial one-off increase in income in the same period in the previous year, but the gross profit margin stood at 9.6%, above the initial forecast of 8.1%.

Ordinary income rose 600 million yen over the previous year to 12.6 billion yen.

Income increased due to a rise in share of profit of entities accounted for using equity method and a decrease in foreign exchange losses attributable to a weaker yen.

Net losses attributable to owners of the parent totaled 48.4 billion yen.

The posting of an extraordinary loss to cover losses related to the Ichthys LNG project resulted in a bottom-line loss.

3. Segment Information

【Unit: Billions of Yen】

FY2020 1H	FY2021 1H	Difference

Total Engineering	Net sales	178.4	195.6	+17.1	+10%
Segment profit	9.1	7.1	△ 1.9	△	22%
Functional Materials	Net sales	20.1	21.4	+1.2		+6%
Manufacturing	Segment profit	2.7	3.7	+1.0	+39%
Others (Including	Net sales	0.8	0.8	+0.0		+4%
adjustments)	Net sales	△ 0.3	△ 0.5	△ 0.2		+9%
	Segment profit					-
Total (Consolidated)		199.4	217.9	+18.5
Segment profit	11.5	10.3	△ 1.1	△	10%

© 2021 JGC HOLDINGS CORPORATION

Enhancing planetary health

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Next, I will discuss segment information.

In the Total Engineering segment, we made steady progress with projects in hand. Net sales increased 17.1 billion yen over the previous year to 195.6 billion yen.

Segment profit was down 1.9 billion yen to 7.1 billion yen.

The major projects were an LNG project in Canada, a floating LNG project in Mozambique, a refinery upgrading project in Iraq, and a biomass power plant in Japan, among others.

In the Functional Materials Manufacturing segment, sales and income increased due to a recovery in demand.

Net sales rose 1.2 billion yen over the same period in the previous year to 21.4 billion yen.

Segment profit was up 1.0 billion yen to 3.7 billion yen.

Results for Others are as shown.