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"New Horizon 2015" New Medium-Term Management Plan
- Program Management Contractor & Investment Partner

In April 2011, JGC embarked on a new medium-term management plan entitled "New Horizon 2015," which sets out new goals for the Company to achieve over the course of the next five years. Besides achieving numerical targets, under this new plan we aim to begin transforming our business model with the goal of becoming a "Program Management Contractor & Investment Partner," as a milestone for the JGC Group from a medium- to long-term standpoint.

Aiming for Consolidated Net Income of ¥50.0 Billion in Fiscal 2015
"New Horizon 2015" sets the goal of achieving consolidated net income of ¥50.0 billion in fiscal 2015, the fiscal year ending March 31, 2016.
However, the plan does not set any targets for net sales. The reason for this is that we aim to expand our business in the fields of enterprise investment and planning and management services, where performance cannot be accurately gauged based on sales targets.

"New Horizon 2015" 10-Year Milestone
The central goal of "New Horizon 2015" is to serve as a milestone in the transformation of the Group's business model over the medium and long term. Previously, JGC's business model has been focused largely on the EPC business. In the previous medium-term management plan, we added enterprise investment as a new business field. Now, under "New Horizon 2015," we plan to strengthen and expand in these two arenas, while adding planning and management services business to our repertoire, bringing us closer to our goal of reinventing JGC as a Program Management Contractor & Investment Partner. However, business model reform is a management issue of considerable complexity and requires time to achieve. This is why we position "New Horizon 2015" as a mid-term goal with its focus set firmly 10 years in the future.

We have decided to transform our business model because, since the EPC business is greatly influenced by changes in the market, being involved solely in the EPC business produces large swings in company performance. Competition in the EPC business is also expected to escalate in the near future. However, social infrastructure fields such as water, electricity and transportation will unquestionably expand in size in tandem with economic growth in emerging nations. We believe that the fields to which the JGC Group can contribute will greatly broaden as a result.

Strengthening the EPC Business, Expanding and Developing
Enterprise Investment and Services Businesses
In light of these market forecasts, "New Horizon 2015" lays out a plan for strengthening our EPC business, while expanding and developing enterprise investment and services businesses.

In the EPC business, we plan to enhance JGC's cost competitiveness in overseas hydrocarbon projects. Parallel to this, we will also develop new fields, as we seek to expand overseas in non-hydrocarbon sectors. Strengthening and expanding EPC subsidiaries in Japan and overseas is a major pillar of our strategy. At overseas EPC subsidiaries in particular, we will increase the workforce, with the aim of making them capable of executing small and medium-sized local projects in an integrated manner entirely in-house.

In the investment business, we will actively invest in businesses that play to the strengths of the JGC Group. We will therefore continue to concentrate on sectors such as power and new energy, resource development, water, and the environment, but we will also invest in new fields. Plans call for the investment of around ¥100 billion over the next 5 years.

In planning and management services, we will provide services that help bring customers' business plans to fruition. We believe that this business will enable us to become involved in various domains such as total management of customers' business plans, investment and EPC services.

JGC Group is poised to undergo a major metamorphosis over the next five years. While EPC will remain our core business, we are looking to broaden our horizons as a Program Management Contractor & Investment Partner. We are convinced that this path will lead the JGC Group to greater growth.


	Delhi-Mumbai Industrial Corridor Feasibility Study - The First Step toward Becoming a Program Management Contractor & Investment Partner - Urban and infrastructure development is a perfect context for giving examples of how we seek to achieve our goal of becoming a Program Management Contractor & Investment Partner. Urban development requires the construction of various systems and infrastructure, including medical, fire-prevention, law enforcement, and other security systems which serve as important lifelines supporting people's daily lives, as well as cultural and educational facilities. In recent years, the creation of sustainable cities that provide comfortable, environmentally- friendly living has also gained traction, along with the concept of the "smart and compact community." JGC is engaged in the development of new cities and infrastructure based on these concepts. As a first step, we are conducting feasibility studies for achieving an environmentally sound urban development (a "smart community") in Shendra in the Indian province of Maharashtra, as a part of the Delhi-Mumbai Industrial Corridor Initiative being promoted by the Indian and Japanese governments. This project aims to develop the economies of regional cities and will involve smart grids, recyclable water and waste processing, environmentally friendly city structures and other elements. The aim is to create environmentally sound cities with a low carbon footprint. JGC's role is to accurately identify needs in India, clarify what it will take to realize solutions, and draw up a highly realistic blueprint that effectively integrates the technology and expertise of Japanese partners, centered on JGC. In a nutshell, this is what we mean by "program management service." The Program Management Contractor & Investment Partner is a new corporate vision for JGC. It entails cooperating with our clients on planning, proposals, business promotion, operation and management in accordance with clients' needs and strategies; offering the required EPC services for plants and infrastructure; and at times participating as a business partner.

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