JGC Holdings Corporation (Representative Director, Chairman and Chief Executive Officer: Masayuki Sato) announces that JGC Japan Corporation (Representative Director, President: Shoji Yamada, hereinafter referred to as "JGC Japan") has concluded an agreement with IHI Plant Services Corporation (Representative Director, President: Takashi Murasumi, hereinafter referred to as "IPC") to transfer to JGC Japan the EPC (Engineering, Procurement and Construction) business of the pharmaceutical plant business owned by IPC.

Since the 1980s, JGC Japan has executed over 600 projects calling for the delivery of pharmaceutical-related facilities and equipment and has established itself as a leading EPC contractor for pharmaceutical plants in Japan. Further, as the "transformation of EPC operations" is a key strategy in the JGC Group's medium-term management plan - "Building a Sustainable Planetary Infrastructure 2025" (referred to as BSP2025), JGC Japan has positioned the pharmaceutical field as a growing area in the EPC sector and is aiming to further expand its business.

The domestic pharmaceutical market in Japan has been revitalized by the return of production facilities to Japan as new drug development progresses. Moreover, strong demand in the domestic pharmaceutical market is expected in the future. Along with the strengthening of its technological capabilities to meet the needs of clients, JGC Japan will aim to further increase its project execution capabilities as stated in BSP2025.

Over the years, IPC has consolidated its operations, from design, manufacturing to installation and maintenance of plants in the natural resource, energy, and environmental fields. IPC also has pursued measures to strengthen its competitiveness in the EPC of pharmaceutical plants.

JGC Japan has carefully considered the transfer of IPS' pharmaceutical EPC business as one of the options for realizing its business expansion in the pharmaceutical field. JGC Japan decided to enter into an agreement with IPC for the transfer of IPC's pharmaceutical EPC business upon determining that IPC's human resources and knowledge would be a good match with JGC Japan's human resources, knowledge, and experience in the pharmaceutical field, with the expectation of further business expansion in the pharmaceutical field for JGC Japan.

The impact of the business transfer on JGC Holdings' consolidated financial results for the fiscal year ending in March 2022 will be modest. In the event that items to be disclosed emerge due to future progress, they will be disclosed in a timely manner.

• Conclusion of the Business Transfer Agreement: August 2021
• Transfer of Business Effective: November 2021 (tentative)
• Completion of the Transfer of Business: April 2022 (tentative)