Record Operating Income in Fiscal 2010
In fiscal 2010, the year ended March 31, 2011, the support of shareholders and clients, as well as the hard work of everybody in the Group, helped JGC to achieve consolidated net sales of ¥447.2 billion. In terms of earnings, we recorded gross profit of ¥81.3 billion, operating income of ¥63.5 billion and net income of ¥25.4 billion. With the exception of net income, all earnings figures were records for JGC. We paid a full-year dividend of ¥30.0 per share, as planned. Contracts awarded reached ¥618.2 billion, eclipsing our consolidated target of ¥500.0 billion despite the highly competitive market.
Our forecasts for fiscal 2011 are for consolidated net sales of ¥550.0 billion, operating income of ¥64.0 billion, and net income of ¥42.0 billion. We have set a target for consolidated orders of ¥550.0 billion, and will do our best to achieve this target.
The engineering and construction market for fiscal 2010 saw the effects of the global financial crisis that began in the US in September 2008 almost completely disappear. Furthermore, the price of crude oil was stable at between $70 to $80 per barrel, energy demand rose and urbanization advanced in emerging markets, while populations grew in resource-rich nations. Against this backdrop, many capital investment plans relating to oil, natural gas and petrochemicals were implemented.
Under these conditions, JGC prevailed in the face of fierce competition. In Japan, we won an order for an LNG receiving terminal, while overseas we won orders for a large-scale gas processing plant in Qatar, an LNG plant in Indonesia, and a diesel hydrotreater project in Singapore, among other highlights. These achievements helped our contracts awarded reach ¥618.2 billion on a consolidated basis, which exceeded our ¥500.0 billion target. Meanwhile, in our investment business, we acquired equity interests in a water and waste water utility in Australia, and in a concentrated solar power business in Spain. We have seen steady progress in the investment business in fiscal 2011 as well, and acquired an equity stake in a shale oil production and development business in the US.
Since the end of 2010, the world has witnessed democratic uprisings in Tunisia, Egypt, Libya and other countries in the Middle East and North Africa. JGC has ongoing projects in Algeria, Qatar, Saudi Arabia, and Abu Dhabi. As these countries have not experienced noticeable disorder, our projects have proceeded steadily without being affected.severe cost competition.

Focus on Achieving Targets of New Medium-Term Management Plan.
Clients' Continued Robust Capital Investments in Fiscal 2011.
Concentrating on Achieving EPC Business Order Target.
Investment Business and Management Services Business
Also Being Vigorously Developed.
Fiscal 2011 is the inaugural year of our new medium-term management plan "New Horizon 2015." The core strategies of this plan focus on the EPC business, and investment and service businesses. We plan to steadily execute these strategies to achieve our numerical targets and deliver the expected results.
As in fiscal 2010, investment in oil and gas resources around the world is expected to remain lively. Supporting this robust investment activity is rising energy demand in emerging nations and resource-rich nations, as mentioned earlier. Based on this forecast, fiscal 2011 capital investment is projected to exceed the fiscal 2010 level.
By region, in the Middle East and North Africa oil refining and gas chemicals project plans are taking shape with the aim of adding value to oil and gas. At the same time, natural gas-related projects will move ahead against the backdrop of rising demand for natural gas as a fuel for electricity generation and as a feedstock for gas chemicals. In Asia and Oceania, it is expected that LNG demand will be spurred in Southeast Asian countries by lower gas and LNG prices due to increased shale gas production volume in the US. Moreover, LNG demand in China and India is expected to remain buoyant. In light of these conditions, many LNG projects are in the planning phase, especially in Australia. Meanwhile, in Japan we expect to see continued capital investment in the biopharmaceuticals field in particular.
Amid this anticipated market environment, JGC will concentrate all of its efforts in fiscal 2011 on attaining our consolidated order target of ¥550.0 billion. Regarding projects we have long been working to win contracts for, such as a petroleum refinery in Vietnam and LNG projects in Australia, we will strive to deliver results. We are also determined to win against tough competition, drawing on the successes of the company-wide activities over the past few years designed to strengthen our cost competitiveness.
As before, we will concentrate on participating in clients' development plans from the earliest stage. At the same time, in regions and fields where we can take full advantage of our competitive edge, we aim to maintain a solid competitive position and translate that into orders. To strengthen our order-winning ability, we will make optimal proposals that dovetail with clients' project implementation policies on both the technology and cost fronts. We will also continue to strengthen our cost competitiveness and will work to quickly nurture overseas EPC subsidiaries.
In the investment business, we have positioned as key fields under New Horizon 2015 the following: infrastructurerelated businesses such as power and water, the environment and new energy, and water; and resource development businesses including oil and gas development and production. In addition, we will actively develop program management services in smart city development projects already under way in India, as well as accelerate the commercialization of technologies presently under development.

We ask our shareholders for your continued support and guidance.

July 2011