Jgc Holdings Corporation · TSE:1963
Jgc — Investor Presentation (2022)
33 slides from Jgc's investor presentation, 2022
Slide 1: Investor Presentation
Investor Presentation Enhancing planetary health JGC HOLDINGS CORPORATION
Slide 2: Disclaimer - Note on Future Outlook
Disclaimer -Note on Future Outlook This presentation may contain forward-looking statements about JGC Holdings Corporation. You can identify these statements by the fact that they do not relate strictly to historic or current facts. These statements discuss future expectations, identify strategies,
Slide 3: Company Profile & History
Company Profile & History Enhancing planetary health
Slide 4: Company Profile
Company Profile Name JGC HOLDINGS CORPORATION Established October 25, 1928 Head Office 2-3-1, Minato Mirai, Nishi-ku, Yokohama-shi, Kanagawa, 220-6001, Japan Employees (Consolidated) 7,275 (As of March 31, 2022) Stock exchange Prime market, Tokyo Stock Exchange (TSE Code:1963) 【Total Engineering】 EP
Slide 5: History
History 1928 1930s-50s 1960s 1970s Establishment of Japan Gasoline Co., Ltd., Engineering Business Growth into Concerted International Expansion Establishing its Position as The predecessor of JGC Holdings Corp. Full-Scale Operations A World-class Engineering Enterprise Start of Catalyst Manufacturi
Slide 6: Group Management Structure
Group Management Structure Total Engineering (EPC Business) JGC CORPORATION (Overseas Business) Energy Solutions Sustainable Solutions Functional Materials Manufacturing Facility Infrastructure Solutions Total Engineering JGC JAPAN CORPORATION (Domestic Business) 9% JGC HOLDINGS Functional Materials
Slide 7: Our Strategy
Our Strategy Enhancing planetary health
Slide 8: Overall Strategy
Overall Strategy Three key strategies pursued over five years of challenge Transformation of ● Increase competitiveness and profitability in mega-sized EPC projects EPC operations ● Take on EPC growth markets and segments Expansion of ● Offer more product line-ups in existing business for increased
Slide 9: Strategy - Transformation of EPC operation
Strategy - Transformation of EPC operation JGC Group’s EPC Business - Lumpsum Turnkey - Improve Competitiveness & Profitability Current - Focused on volatile Oil & Gas segment Business - Focus business to Differentiated growth segments Business - Centralized Operation from Global HQ Transition - Reg
Slide 10: Strategy - Expansion of manufacturing business for high-performance functional materials
Strategy - Expansion of manufacturing business for high-performance functional materials JGC Group’s Manufacturing Business - Niche Strategy (Market focused) - Domestic Niche to Global Niche Current - Unique Product, Small Market Segment Business - Unique product aiming at potential large markets Bu
Slide 11: Strategy - Establishment of future engines of growth
Strategy - Establishment of future engines of growth Key Technologies Production Transportation CO2 Liquification Natural Gas Oil Hydrogen Hydrogen (Blue) Coal +N2 SMR Solar Power Small Module Wind Power Hydrogen Ammonia Reactor (Green) Nuclear Power © 2021 JGC GROUP Enhancing planetary health 11
Slide 12: Strategy - Establishment of future engines of growth
Strategy - Establishment of future engines of growth JGC Group’s Clean Energy Business - Focus on Hydrogen, Ammonia and SMR - JGC received inquiries of various FS and Pre-FEED - MCH* as a potential hydrogen career Business Current - Alliance with Toyo and KBR for Ammonia projects worldwide Transitio
Slide 13: Worldwide opportunity - Toward Zero Carbon Future
Worldwide opportunity - Toward Zero Carbon Future Estonia KSA Russia KSA UAE OMAN OMAN Russia SMR (NEOM) H2, NH3 NH3 H2, NH3 H2, MCH H2 H2, NH3 Canada Canada H2, NH3 NH3 H2, NH3 Poland SMR China Japan ・Receiving Terminal H2 H2/NH3 ・Power Plants Romania SMR USA H2、NH3 Morocco H2, NH3 USA Egypt H2、NH3
Slide 14: Strategic Investment (2021-2025)
Strategic Investment (2021-2025) Digital Business Commercial Production M&As demonstrations R&D Transformation development facilities Expansion of manufacturing business Establishment of Transformation of EPC operations for high-performance future engines of growth functional materials 70 billion JP
Slide 15: JGC Group's 2040 vision - Business Domain Portfolio
JGC Group’s 2040 vision - Business Domain Portfolio Sales contribution by business areas and models Taking on social issues through a variety of business models in more diverse business areas Business areas Business models Others 2% Industrial & Urban infrastructure High-performance functional mater
Slide 16: Positive Market Condition
Positive Market Condition Enhancing planetary health
Slide 17: Achievements in LNG Projects
Achievements in LNG Projects Over 30% of • LNG Canada • Yamal LNG, 2019 • Malaysia LNG, 2018 / 2017 / 2004 / 2004 / 1996 / 1983 World LNG Production • PFLNG2, 2021 * Including Ongoing Projects • Brunei LNG, 1974 / 1973 • Donggi Senoro LNG, 2015 • Tangguh LNG, 2009 • SEGAS LNG, 2004 • PNG LNG, 2014 •
Slide 18: Planned LNG Projects
Planned LNG Projects Canada ‐ LNG Canada Phase2 UAE ‐ Fujairah LNG U.S. Indonesia ‐ Freeport LNG Exp. Nigeria ‐ Masela LNG ‐ Cameron LNG Exp. ‐ UTM Offshore and other ‐ FLNG Papua New Guinea Malaysia ‐ PNG LNG Exp. ‐ ZLNG (FLNG) Mozambique ‐ Rovuma LNG ＊Red indicates projects in which JGC provided F
Slide 19: Progress in Major Projects: LNG Canada
Progress in Major Projects︓LNG Canada Joint venture scope is over 60 percent complete. Out of 215 modules, 93 modules are onsite. © 2021 JGC GROUP Enhancing planetary health 19
Slide 20: Progress in Major Projects: Basrah Refinery Upgrading
Progress in Major Projects︓Basrah Refinery Upgrading Engineering works over 60% completed. Construction works progressing well. © 2021 JGC GROUP Enhancing planetary health 20
Slide 21: Progress in Major Projects: Domestic Projects
Progress in Major Projects : Domestic Projects Multiple biomass power generation Multiple Pharmaceutical mfg. plants Multiple mega solar power generation plants (order size: over 500 million (order size: 200 million USD) plants (order size: 100 million USD) USD) Ongoing multiple construction project
Slide 22: Total Engineering Orders Target for FY2022
Total Engineering Orders Target for FY2022 (Apr/22 – Mar/23) Value of FY2022 Consolidated Orders Target︓ 840 Billion JPY 6.46 Billion USD) ( ※1USD=130 JPY JGC Corporation JGC Japan Orders target 670 Billion JPY 170 Billion JPY for fiscal 2022 (5.15 Billion USD) (1.31 Billion USD) Energy Solutions Fa
Slide 23: Our Opportunity - Pipeline
Our Opportunity – Pipeline ＞ 4,000 Billion JPY Opportunities 30.8 Billion USD) ( FY2022 ＞2,000 Billion JPY Proposals 15.4 Billion USD) ( FY2022 840 Billion JPY Consolidated Orders Target ( 6.46 Billion USD) ※1USD=130 JPY © 2021 JGC GROUP Enhancing planetary health 23
Slide 24: Total Engineering Orders Received in Q1 of FY2022
Total Engineering Orders Received in Q1 of FY2022 Orders Received︓ 360.6 Billion JPY （2.64 Billion USD ） ※1USD=136.68 JPY (As of end of Jun.) JGC Corporation JGC Japan Orders Received 330.0 Billion JPY 30.6 Billion JPY (2.41 Billion USD) (0.22 Billion USD) Energy Solutions Facility Infrastructure Re
Slide 25: Financial
Financial Enhancing planetary health
Slide 26: Financial performance and FY2025 target
Financial performance and FY2025 target Revenue (Net sales) EBIT (Operating income) Net profit (USD Million*) (USD Million*) (USD Million*) 6,154 462 4,769 346 3,500 223 180 185 169 FY2021 FY2022 FY2025 FY2021 FY2022 FY2025 FY2021 FY2022 FY2025 Actual Forecast Target Actual Forecast Target Actual**
Slide 27: Performance trend
Performance trend (USD Million*) 20,000 New award 15,000 Backlog 10,000 5,000 0 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2021 FY2022F (USD Million*) 8,000 Revenue 20 Gross margin % 6,000 15 4,000 10 2,000 5 0 0 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY
Slide 28: Financial Performance by Business segments
Financial Performance by Business segments Total Engineering (Project EPC) Functional Materials Manufacturing Revenue EBIT Revenue EBIT (USD Million*) (USD Million*) (USD Million*) (USD Million*) 362 354 4,354 220 60 46 3,088 108 FY2021 FY2022F FY2021 FY2022F FY2021 FY2022F FY2021 FY2022F (Note) Fin
Slide 29: Solid balance sheet and liquidity
Solid balance sheet and liquidity 56% Equity to assets Operating cash flow generation Financial management objectives (USD Million*) Liabilities • Solid balance sheet for mega-sized project delivery Equity 158 113 • Sufficient liquidity for efficient Equity Liabilities operation and growth opportuni
Slide 30: Shareholder return policy
Shareholder return policy Annual cash dividends : Pay-out ratio 30% of net income with minimum floor JPY15 per share Share buyback : to consider based on financial position and business outlook Annual cash dividends per share (JPY) 29 15 minimum floor 12 12 introduced from FY2021 FY2019 FY2020 FY202
Slide 31: JGC's Risk Management
JGC’s Risk Management Enhancing planetary health
Slide 32: JGC's Risk Management
JGC’s Risk Management Partnering Project Selection • New business market • Risk Assessment • Improved Competitiveness • Target prioritization • Robust project execution • Sharing executional risk/resources JGC’s Risk Management Commercial Historical Benchmarking (Estimation) • Cost and Schedule Risk
Slide 33: Enhancing planetary health
Enhancing planetary health © 2021 JGC GROUP Enhancing planetary health 33