JGC Corporation, Engineering for the Quality of Human Life
-
Upload
trinhhuong -
Category
Documents
-
view
227 -
download
6
Transcript of JGC Corporation, Engineering for the Quality of Human Life
![Page 1: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/1.jpg)
Hideo MasudaVice Chairman and CFO
JGC CORPORATIONEngineering for the Quality of Human Life
January 2007
Contents
Settlement of Accounts
New Contracts by Business Field
Major Orders in First Half-Year
JGC’s Trends in Orders Received
Outstanding Contracts
Outstanding Contracts by Business Fields
Our Clients’ Market Situation1-2
Current Environment for Contractors
JGC Countermeasures
JGC Action Plan1-5
1.
2.
3.
4.
5.
6.
7.
9.
10.
11.
![Page 2: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/2.jpg)
440.00807.64469.53498.25New contracts
26.50(4.7)
20.38(3.7)
13.22(3.0)
15.48(3.7)
Operating income
560.00550.30435.19409.96Net sales
17.00(3.0)
15.01(2.7)
11.58(2.7)
10.58(2.5)
Net income
43.80(7.8)
36.23(6.6)
28.29(6.5)
30.42(7.4)
Gross profit
March 31, 2007 (exp.) (%)
March 31, 2006 (%)
March 31, 2005 (%)
March 31, 2004 (%)
(Billions of yen)
1. Settlement of Accounts
0 100,000 200,000 300,000 400,000 500,000 600,000
2006
2005
2004
2003
2002
■ 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
2. Business Fields -New Contracts by Business Field
Forecast
![Page 3: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/3.jpg)
3. Major Orders in First Half-Year
Africa
Gas Processing(FEED)
Japan
PharmaceuticalsChemicals
Asia
Chemicals
<Total in first half-year> 133 billion yen<Goal for full fiscal year> 440 billion yen
4. JGC’s Trends in Orders Received
Steady Increase in Two-year AverageSteady Increase in Two-year Average
FY2001-02 FY2003-04 FY2005-06
Avg. 350 billion yen
Avg. 480 billion yen
Avg. 620 billion yen
![Page 4: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/4.jpg)
5. Outstanding Contracts
Hits All-time Record HighHits All-time Record High
Doubles in Five YearsDoubles in Five Years
1 trillionyen
550 billionyen
FY2002 FY2005
6. Outstanding Contracts -by Business Field
Oil & Gas Development
Petroleum Refining
LNG
Chemical
Power Generation, Nuclear Power, NewEnergyLiving and General Production
Environmental Protection, SocialDevelopment and ITOthers
Total ¥1,009billionTotal ¥1,009billionas of end of March 2006
2.1%1.4%
20.6%
24.3%
18.2%
28.3%
4.9%
0.06%
![Page 5: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/5.jpg)
7. Our Clients’ Market Situation (1)
Over
seas
Accelerated development of new oil & gas fieldsgenerates large increases in downstream projects.
Numerous refineries, gas processing andPetrochemical projects are planned in MENA region.
Downstream projects revitalized in Southeast Asia.
8. Our Clients’ Market Situation (2)
Japa
nIncreased investment in refinery modernization, heavy crude oil processing and integratedfacilities for refining and petrochemicals
World forecast for 2007: US$50 billion to be spent on oil,gas, and petrochemical facilities,
representing a 20% year-on-year increaseSource: Hydrocarbon Processing – Market DATA 2007
In the MENA region, more than US$200 billion to be investedin oil and gas downstream facilities from 2007 thru 2011
Source: Middle East Economic Survey - APICORP Research
![Page 6: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/6.jpg)
・Manufacturers・Skilled labor・Construction
equipment makers
Capacities ofcontractors
9. Current Environment for Contractors
Number of projectsby Clients
Capacities ofvendors &
subcontractors
Supplycapacity
Rises in equipment/materials costs caused byincreased demand
Longer delivery periods and lower qualitybrought about by overburdened vendors
Shortage of qualified workforce at subcontractors
10. JGC Countermeasures
Minimize Risksin All Project Phases
and Secure Profits
![Page 7: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/7.jpg)
11. JGC Action Plan (1) For successful project execution
Diversify contract types(Open book estimates, Lump-sum conversion,Reimbursable, etc. )
Strengthen partnershipswith clients
Contract Engineering Procurement Construction
Continue expansion ofoverseas engineering centers
Increase use of outside resources
12. JGC Action Plan (2) For successful project execution
Contract Engineering Procurement Construction
![Page 8: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/8.jpg)
Strengthen schedule control andQC staff (monitoring and supportfor vendors)
Engage in continuous gathering/analysis of cost and deliveryinformation for equipment & materials
Secure close relationship with key vendors from early stages
13. JGC Action Plan (3) For successful project execution
Contract Engineering Procurement Construction
Utilize reliable foreign subcontractorsIn other countries
Use proven resources from currentprojects for upcoming projects
Secure close relationship with key subcontractors from early stage
14. JGC Action Plan (4) For successful project execution
Contract Engineering Procurement Construction
![Page 9: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/9.jpg)
Contract Engineering Procurement Construction
Adopt thorough ‘Risk Management’
Launch ‘Project Advisory System’giving to management direct involvement in major projects
“Effort at all stages”
15. JGC Action Plan (5) For successful project execution
![Page 10: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/10.jpg)
Hideo MasudaVice Chairman and CFO
JGC CORPORATIONEngineering for the Quality of Human Life
January 2007
for Reference
JGC Group Scenario 2010 : New Medium-Term Management Plan
![Page 11: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/11.jpg)
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)
1. Target Management Figures
2005 FY 20102006 2007 2008 2009
400
500
600
650
2. Expected Growth of Net Sales
Billionyen
490490
540540
560560580580
600600
520520
560560550550
![Page 12: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/12.jpg)
2005 FY 20102006 2007 2008 2009
10
20
30
40
3. Expected Growth of Net Income
1212
1818
2121
24242727
3030
17171515
Billionyen
4. Non-E&C Business Strategy
・Water and power generation・Resource development・Gas emissions credits
Enterprise InvestmentEnterprise Investment
・Catalysts・Fine chemicals
ProductionProduction
・Operation & Maintenance (O&M)・Consulting
ServicesServices
![Page 13: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/13.jpg)
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
5. Investment Planning
6. Effect on Profit of Exchange Rate Fluctuation
■ Total Cost : 462.8 billion yen
■ Overseas Job Cost : 370.2 billion yen(462.8 billion x 80%)
■ Cost Breakdown (as shown below)
Overseas 80%Domestic 20%
Equipment and Materials : 37% (78%)*Payments to Japanese Vendors in Foreign Currency : 30%
Subcontracted Work: 46% (100%) Personnel Expenses: 7% (20%)
Other Expenses : 10% (80%)
( ): Overseas procurement
Overseas Domestic75% 25%
Overseas100%
Overseas 20%Domestic 80%
![Page 14: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/14.jpg)
■ Amounts to be paid in billions of yen:
Equipment and Materials 21.09 (370.2 x 0.37 x 0.22 x 0.7)Subcontracted Work 0.00Personnel-related 20.73 (370.2 x 0.07 x 0.8)Other 7.40 (370.2 x 0.1 x 0.2)
■ Approximately 60% to be hedged byexchange contract
■ Exposure : 19.69 billion yen■ (US$184.02 million at Yen 107.00 = US$1)
Total 49.22Total 49.22
7. Effect on Profit of Exchange Rate Fluctuation
■ 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
8. LNG Plant Construction Projects
![Page 15: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/15.jpg)
9. Outlook for World LNG Demand
130
2005Actual
2020Forecast
14
America
101
Europe
33
155
Asia
92
2005Actual
2020Forecast
2005Actual
2020Forecast
(million tons/year)
World LNG consumption in 2005: 139 million tonsEstimated demand in 2020: 386 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 2006
10. Planned LNG Projects
Egypt- SEGAS LNG T2- Iduku LNG T3
U.A.E..- ADGAS LNG T4 & T5
Angola- Angola LNG
Trinidad & Tobago- Atlantic LNG T5
Peru- Peru LNG
Australia- Gorgon LNG- Sunrise LNG- Pluto LNG- Pilbara LNG- Browse LNG- Ichthys LNG
Brunei- Brunei LNG T6
Malaysia- Malaysia LNG T9
Indonesia- Tangguh LNG T3
Iran- Pars LNG- Persian LNG- NIOC 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- Skikda LNG- Arzew LNG
![Page 16: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/16.jpg)
11. Worldwide Workforce
Increasing domestic and overseas manpower resources by 20% or more to respond to higher salesIncreasing domestic and overseas manpower resources by 20% or more to respond to higher sales
Expected Manpower Resource Expansion
Overseassubsidiaries
includingM.W. Kellogg
1,800
JGC1,900Domestic
EngineeringSubsidiaries1,800
JGCPhilippines(Philippines)900
JGC DESCONEngineering(Pakistan)300
PERTAFENIKKIEngineering(Indonesia)300
FY 2005FY 2010
7,000 Employees 8,500 Employees
Overseassubsidiaries
includingM.W. Kellogg
2,300
PERTAFENIKKI Engineering(Indonesia)500
DomesticEngineeringSubsidiaries2,000JGC
Philippines(Philippines)1,000
JGC DESCONEngineering(Pakistan)500
JGC2,200
GlobalEngineeringCenterGlobal
EngineeringCenter
12. Outstanding Contractsas Percentage by Business Region
Japan
Africa
Asia
Middle East
Oceania
North & South America
Others
0.1% 0.1%0.1%
21.1%
16.9%
4.6%
57.2%
Total ¥1,009 billionTotal ¥1,009 billionas of end of March 2006
![Page 17: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/17.jpg)
100%
06 12 18 24 30 36months
20%
80%
100%
13. Progress Image
Co
nst
ructi
on
Pro
gre
ss
Time Schedule
Prog
ress
BOUYGUES ( France )5
STRABAG ( Austrian )4
VINCI ( France )3
SKANSKA ( Norway )2
HOCHTIEF ( Germany )1
JGC15
CHIYODA18
KAJIMA23
authority: ENR 21/28 Aug. 2006 The Top International Contractors
Over All RANK
JGC4SNAMPROGETTI ( Italy )5
BECHTEL ( U.S.A. )3
FLUOR ( U.S.A. )2
TECHNIP ( France )1
Industrial / Petroleum
14. Top International Contractors in 2005Contracting Revenue from project outside home country
![Page 18: JGC Corporation, Engineering for the Quality of Human Life](https://reader038.fdocuments.in/reader038/viewer/2022103106/58a028551a28ab01058b6085/html5/thumbnails/18.jpg)
80
100
120
140
160
180
200
220
240
Feb-
02
May
-02
Aug
-02
Nov
-02
Feb-
03
May
-03
Aug
-03
Nov
-03
Feb-
04
May
-04
Aug
-04
Nov
-04
Feb-
05
May
-05
Aug
-05
Nov
-05
Feb-
06
May
-06
Aug
-06
Time
Cos
t Ind
ex
CS Hot-Rolled Plate CS Structural Steel SS Hot-Rolled Plate (SS316)
CS Hot-Rolled Plate
SS Hot-Rolled Plate (SS316)
Source: MEPS (International)
CS Structural Steel
15. Steel Cost Trend
Sol/gel Preparation Technology
Nanoparticle
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
16. Main Products Catalysts & Chemical Industries Co., Ltd.