1

JGC Corporation

Hideo MasudaVice Chairman and CFO

January 2008

Engineering for the Quality of Human lifeEngineering for the Quality of Human life

CONTENTS

Settlement of AccountsTransition of Operation incomeBusiness Fields -New Contracts by Business fieldJGC’s Trends in Orders ReceivedSummary of Outstanding ContractsMarket Environment OutlookMarket Environment Changes Affecting Contractors Focused Regions and SectorsTarget Management FiguresNon-EPC business strategy – Catalysts & chemical products

Segment Information – by Business segment

Non-EPC business strategy – Enterprise investment

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101112

2

301.34

20.18(3.3)

26.41(4.3)

43.92(7.2)

608.52

March 31, 2007 (%)

807.64

15.01(2.7)

20.38(3.7)

36.23(6.6)

550.30

March 31, 2006 (%)

469.53

11.58(2.7)

13.22(3.0)

28.29(6.5)

435.19

March 31, 2005 (%)

540.00New contracts

43.00(7.7)

Operating income

560.00Net sales

26.50(4.7)

Net income

63.00(11.3)

Gross profit

March 31, 2008 (exp.) (%)

(Billions of yen)

1 Settlement of Accounts

2 Transition of Operating income

FY2005 FY2006 FY2007FY2004

13.2 billion Yen

20.3 billion Yen

26.4 billion Yen

43.0 billion Yen

3

0 100,000 200,000 300,000 400,000 500,000 600,000

2007

2006

2005

2004

2003

■ Oil & Gas Development

■ Petroleum Refining

■ LNG

■ Chemical

■ Power Generation,Nuclear Power, New Energy

■ Living and General Production

■ Environmental Protection,Social Development and IT

■ Others

FiscalYear

Millions of Yen

Forecast : 540,000

3 Business Fields – New Contracts by Business field

FY2003-04

480 billion Yen(average)

FY2005-06

550 billion Yen(average)

FY2007-08

570 billion Yen(average)

Steady Increase towards the goal ofJGC mid-term management plan

4 JGC’s Trends in Orders Received

4

▲272.1FY2005 FY20061,024.3 752.2

(Unit : Billions of Yen）

by Business sector by Business sector by Regionby Region

5 Summary of Outstanding Contracts

FY2005 FY2006 FY2005 FY2006

Oil & gas development

211.0

Petroleum refining245.0

LNG187.5

Chemical296.5

Others 84.1

106.7 (14.2%)

204.0 (27.1%)

133.2 (17.7%)

187.4 (24.9%)

120.6 (16.0%)

Japan207.7

Asia176.8

Africa 47.4

Middle East589.5

Others 2.7

240.7 (32.0%)

156.3 (20.8%)

327.1 (43.5%)

4.0 (0.5%)

23.8 (3.2%)

6 Market Environment Outlook

World forecast for 2008: US$54 billion to be spent onoil, gas, and petrochemical facilities,

representing a 9% year-on-year increase ($49.8 billion in 2007)

In the MENA region, more than US$260 billion to be invested In oil and gas downstream facilities from 2008 thru 2012

(The forecast done in 2007 for the same periodset the figure at $200 billion.)

Source: Hydrocarbon Processing, Market Data2008

Source: Middle East Economic Survey, API CORP research

5

7-1 Market Environment Changes Affecting Contractors

2004 – 2006

Chronic supply shortages continued due to the shortfallIn the capacities of equipment vendors,and more seriously, materiel suppliers.

Capacities ofcontractors

Number of projectsby Clients

Capacities ofvendors &

subcontractors

Supplycapacity

・Manufactures･Skilled labor・Construction equipment

makers

7-2 Market Environment Changes Affecting Contractors

Rises in equipment/materials costs and shortage of quality subcontractors

Increase in plant construction costs

Tendency to delay investment decisions for planned projects

Vendors invest to expand their facilities;materiel prices settle down

Environment surrounding contractors is likely to improve

2007 and beyond

6

7-3 Market Environment Changes Affecting Contractors

Actual and estimated level of labor needed for constructionin the Middle East

These figures will level off because investment in planned projects will be delayed.

However, the levels will remain high

* Data from JGC sources2004 2007

Actual volume

2010

Estimate for 2007

Required laborvolume

8 Focused Regions and Sectors

The second half of 2007 through 2008

Continued targeting of large-scale projects in the Middle East,Africa, and Asia where investment in equipment is active.

For the Japanese market, we will remain focusedon the same sectors.

Total value for the focused projects: 1 trillion yen level

・Middle East・Africa・Asia・Japan

・Middle East・Africa・Asia・Japan

Oil Refineries, Gas/Oil related and PetrochemicalsLNG and Gas relatedLNG and Oil RefineriesOil Refineries, Petrochemicals and others

7

JGC Group Scenario 2010 : New Medium-Term Management Plan

550 billion yen

15 billion yen

25%

11 yen

9.3%

600 billion yen

30 billion yen

25%

23 yen

11.0% or more

600 billion yen

30 billion yen

25%

23 yen

11.0% or more

Net Sales

Net Income

Dividend PayoutRatio

Annual DividendPer Share

ROE

(non-consolidated)

End of Fiscal 2005 End of Fiscal 2010 (Goal)

(non-consolidated)

9 Target Management Figures

8

- Polishing materials for wafer surfaces- Interlayer insulating film for semiconductors- Surface antireflective coating for flat panel displays- Hard coating for plastic lenses- Cosmetic materials- Anode materials for

secondary batteries

Enhance fine chemicals businessthat uses nanotechnology

Conductive CoatLiquid

Titania Sol

Insulating CoatLiquid

Increasing revenue to 50 billion Yen in FY2010

10 Non-EPC business strategy – Catalysts & chemical products

550.3〔5%〕

29.4

〔95%〕

520.8FY2005

〔%〕

Catalysts and fine chemical

products

〔%〕

Total engineering

608.5〔6%〕

35.0

〔94%〕

573.4FY2006

+58.2

+5.6

+52.6Difference

〔20%〕〔22%〕

〔80%〕〔78%〕

FY2005

+6.020.326.4

+1.54.15.6

+4.416.220.7DifferenceFY2006 (Unit : Billions of Yen）

Operating incomeOperating incomeNet salesNet sales

11 Segment Information – by Business segment

573.4 520.8

35.0 29.4

20.7

5.6

16.2

4.1

0200400600800

FY2006 FY2005 FY2006 FY2005

Net sales Operating income

0.05.010.015.020.025.0

Total engineering Catalysts and Fine Chemical Products

9

Water & Power Generation - Saudi Arabia

Water & Power Generation – U.A.E.

Construction proceeding smoothly for the completion in mid-2008

Water & Power facilities under construction (Saudi Arabia)

Existing Water & Power facilities (U.A.E.)

Construction proceeding smoothly for the completion in mid-2008

Existing facilities performing well.

12-1 Non-EPC business strategy – Enterprise investment [1]

Environment Business

Juhua chemical plant (China)

Rig in operation

Resource development business

Acquired interest in more small oil & gas fields in Mexico; will continue along same lines

Juhua CDM received first CERin December 2006.Other projects also in progress

12-2 Non-EPC business strategy – Enterprise investment [2]

10

JGC Corporation

Hideo MasudaVice Chairman and CFO

January 2008

Engineering for the Quality of Human life

for Reference

2005 FY 20102006 2007 2008 2009

400

500

600

650

Billionyen

490490

540540

560560580580

600600

520520

600600

550550

1 Expected Growth of Net Sales

560560

11

2005 FY 20102006 2007 2008 2009

10

20

30

40

1212

1818

2121

24242727

3030

2020

1515

Billionyen

2 Expected Growth of Net Income

2626

40 billion yenTarget IRR : 12% or more

40 billion yenTarget IRR : 12% or more

1. Investing in Enterprises

Focusing on M&A for expansion of core business

2. E&C Business

On the Basis of a Secure Financial FoundationOn the Basis of a Secure Financial Foundation

From 2010 onward, recovery of investmentFrom 2010 onward, recovery of investment

3 Investment Planning

12

■ Trains : 31 (31.6% of world total)

■ Production : 90 million tons (35.9% of world total)

■ Trains : 31 (31.6% of world total)

■ Production : 90 million tons (35.9% of world total)

Egypt5,000,000 T/Y, 1 train

Nigeria2,950,000 T/Y, 3 trains4,000,000 T/Y, 3 trains

Brunei1,440,000 T/Y, 5 trains

Qatar3,300,000 T/Y, 2 trains

Indonesia1,500,000 T/Y, 1 train3,800,000 T/Y, 2 train

Australia2,430,000 T/Y, 3 trains4,200,000 T/Y, 1 train

Malaysia2,530,000 T/Y, 3 trains2,650,000 T/Y, 3 trains3,870,000 T/Y, 2 trains

Yemen3,350,000 T/Y, 2 trains

4 LNG Plant Construction Projects

117

2006Actual

2020Forecast

14

America

94

Europe

42

168

Asia

99

2006Actual

2020Forecast

2006Actual

2020Forecast

(million tons/year)

World LNG consumption in 2006: 155 million tonsEstimated demand in 2020: 379 million tons

Need to add facilities to meet needs for 10 million tons/yearproduction increases annually over next 15 years

Source: IEEJ Asia/world Energy Outlook 2006BP statistical review 2007

5 Outlook for World LNG Demand

13

Egypt- SEGAS LNG T2- Iduku LNG T3

Trinidad & Tobago- Atlantic LNG T5

Australia- Gorgon LNG- Sunrise LNG- Pilbara LNG- Browse LNG- Ichthys LNG

Malaysia- Malaysia LNG T9

Iran- Pars LNG- Persian LNG- Iran LNG

Russia- Schtokman LNG- Baltic LNG

EquatorialGuinea- LNG T2

＊Red indicates projects in which JGC provided FEED and/or EPC for existing facilities

Venezuela- Deltana CaribeLNG

Nigeria- OK LNG- Nigeria LNG 7 Plus- Brass LNG

JGC has been involved in many of these projects

Algeria- Arzew LNG

6 Planned LNG Projects

Papua New Guinea- Papua New Guinea LNG

Indonesia-Tangguh LNG T3-Donggi-SenoroLNG-Masela LNG

Lybya- Marsa al-BregaLNG

Equatorial GuineaLNG

Ｕ．Ａ．Ｅ．Gas ProcessingIntegrated Gas DevelopmentGasoline & AromaticsRefineryGas Compression

QatarRefineryGas ProcessingQP/Honam Petrochemical ComplexQP/ExxonMobil Petrochemical ComplexShell Petrochemical Complex

AlgeriaArzew LNGGas DevelopmentOil & Gas DevelopmentGAS ProcessingOil Field DevelopmentRefineryLPGPetrochemical ComplexOil Recovery Facility

OmanBitumenRefinery & Petrochemical ComplexOil Development

BahrainLube Base Oil

Saudi ArabiaDomestic RefineryYanbu Export RefineryJubail Export RefineryRas Tanura Refinery & Petrochemical ComplexGas & Oil SeparationEthylene ComplexGas Field Development

IranIran LNGPars LNGPersian LNGGas ProcessingRefinery Expansion &

ModernizationPetrochemical ComplexOil & Gas DevelopmentOil Field UpgradeExtra Heavy Oil Refinery

LibyaGas PipelineGas & Oil SeparationRefineryGas DevelopmentLNG

NigeriaBrass LNGOK LNGNigeria LNGGTL ExpansionGas & Oil SeparationFPSOGas Development

AngolaRefineryFPSOOffshore Oil & Gas Development

EgyptSegas LNG 2nd TrainIduku LNG 3rd TrainPetrochemical ComplexRefinery

KuwaitRefineryRefinery UpgradeGas Processing

7 Projects Planned - Middle East and AfricaIraqRefineryRefinery UpgradeGas ProcessingOil & Gas Development

14

IndonesiaTangguh LNG T3Donggi-Senoro LNGMasela LNGRefineryOil Development

TaiwanLube Base OilRefineryEthylene

AustraliaGorgon LNGICHTHYS LNGPluto LNGPilbara LNGBrowse LNGSunrise LNG

SingaporeRefinery Upgrading

MalaysiaMLNG T3 DebottleneckingMLNG T9Lube Base OilRefinery DebottleneckingPetronas/PSR RefineryExport Refinery

ThailandThai Oil RefineryBangchak RefineryNPC/PTT RefineryRefinery ExpansionRefinery UpgradingAromatics

VietnamNghi Son RefineryLon Son RefineryPetrochemical

8 Projects Planned - Asia and Oceania

Papua New GuineaLNG

FY2005

7,000 employees

Japan3,700

Overseas3,300

March 2007

8,200 employees

Japan4,200

Overseas4,000

FY2010

8,500 employees

Japan4,200名

Overseas4,300

Continuous increase of manpower resources

Being increased ahead of schedule

Target for Mid-term Management plan

9 EPC Business Strategy

15

Japan

Africa

Asia

Middle East

Oceania

North & Central South America

0.4% 0.1%

32.0%

3.2%

20.8%

43.5%

Total ¥752 billionTotal ¥752 billionas of end of March 2007

10 Outstanding Contracts as Percentage by Business Region

100％

06 12 18 24 30 36months

20%

80%

100%

Co

nst

ructi

on

P

rogre

ss

Time Schedule

Prog

ress

11 Progress Image

16

BOUYGUES ( France )5STRABAG ( Austria )4

VINCI ( France )3SKANSKA ( Sweden )2HOCHTIEF ( Germany )1

JGC15CHIYODA16

KAJIMA23

authority： ENR 20 Aug. 2007 The Top International Contractors

Over All RANK

JGC4CCC ( Greece )Consolidated Contractors Int’l Co. Sal

5

FLUOR ( U.S.A. )3BECHTEL ( U.S.A. )2TECHNIP ( France )1

Industrial / Petroleum

12 Top International Contractors in 2006Contracting Revenue from project outside home country

24 TAISEI

80100120140160180200220240260280300320340360380400420440

Feb-

02A

pr-0

2Ju

n-02

Aug

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Oct

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Dec

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Feb-

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pr-0

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n-03

Aug

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Oct

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Dec

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ex

CS Hot-Rolled Plate CS Structural Steel SS Hot-Rolled Plate (SS304)

CS Hot-Rolled Plate

CS Structural Steel

SS Hot-Rolled Plate (SS304)

Source: MEPS (International)

13 Steel Cost Trend

17

Sol/gel Preparation TechnologyNanoparticle

Alignment

Technology

Thin-film Preparation

Technology

De-NOx Catalyst

Anti-bacterial Agent

LCD-related Materials

EnvironmentalProtection

Conductive Materials

SemiconductorDisplay Materials

Optical

Materia

ls

Cosmeti

c Mate

rials

Mem

ory

Mat

eria

ls

Silic

a/Al

umin

a So

lFCC Catalyst

Zeolite

Direct Desulfurization Catalyst

Indirect Desulfurization Catalyst

ZSM-5

VCM Synthesizing Catalyst

Petrochemistry

Oil Refining

CatalystBusiness Fine

ChemicalBusiness

Colloidal Anti-Bacterial Agent

Ultra-precise Silica Particles

Carrier Tape

Insulating Coat Liquid

Conductive Coat Liquid

Insulating PlanarizationMaterial for Semiconductors

CRT Surface Coat Material

Titania Sol

Hard Coat for Plastic LensesUltra-FineSilica

UV Block/Soft Focus MaterialsVideo Tape Filler

OrganicSolvent Sol

Alcohol Flocculant

Precision Cast BinderGasoline

Heavy Oil

Kerosene, Diesel

Poly Vinyl Chloride

materialsrelated

NewBusiness

14 Main Products Catalysts & Chemical Industries Co., Ltd.