JGC (1963) investor relations material

FY2026 orders target and project selection

• Consolidated orders target set at 1.74 trillion yen, with 1.6 trillion yen from overseas and 140 billion yen domestic.

• Focus on LNG projects in Canada, Mozambique, and Papua New Guinea, as well as Southeast Asia data centers and SAF.

• Project selection based on profit, feasibility, resource allocation, and future potential.

Market environment overview

• Medium to long-term LNG demand remains strong, with many projects in North America, Asia, and East Africa.

• Hydrogen, ammonia, SAF, and CCS projects mostly remain in demonstration due to regulatory and economic hurdles.

• Semiconductor, data center, and food-related capital investments progressing, especially in Southeast Asia.

• Domestic SAF projects await regulatory frameworks; steady demand in pharmaceuticals, food, and nuclear sectors.

• Ongoing EPC projects face risks from material price increases, longer lead times, and higher transport costs.

Functional materials manufacturing business

• FY2026 net sales target is 56.9 billion yen, up from 55.5 billion yen in FY2025.

• Strong overseas demand for petroleum refining catalysts and steady fine chemicals demand, especially for semiconductors and electronics.

• Fine ceramics benefit from expanding semiconductor market and data center growth, with strong demand for high thermal conductivity substrates.

• Plans to expand production capacity, streamline systems, and ensure stable raw material supply.