Translation

February 10, 2015

Consolidated Financial Results
for the Nine Months Ended December 31, 2014
Company name: CHIYODA CORPORATION
Listing:First Section of the Tokyo Stock Exchange
Stock code:
6366
URL:
http://www.chiyoda-corp.com/
Representative: Shogo Shibuya, President & CEO
Inquiries:
Nobuo Sekita, SL, Accounting Section
TEL:+81-45-225-7745 (from overseas)
Scheduled date to file Quarterly Report: February 13, 2015
Preparation of Quarterly Supplementary Explanation Material: Yes
Quarterly Financial Results Presentation Held: Yes (for Analysts and Institutional Investors)(Millions of yen with fractional amounts discarded,unless otherwise noted)

1. Consolidated performance for the Nine months ended December 31, 2014
(1) Consolidated operating results
Net sales(Percentages indicate year-on-year changes)
Operating income

Millions of yen% Millions of yen

Ordinary income% Millions of yen

Net income% Millions of yen%

For the Nine months
ended December 31,
331,970
7.9
15,527 (18.5)
14,496 (23.7)
8,282 (27.0)
2014
For the Nine months
ended December 31,307,748 13.8
19,042
1.2
19,010 (1.9)
11,346 (6.0)
2013
Note: Comprehensive Income: the nine months ended December 31, 2014: 11,829 million yen / (2.1%)
the nine months ended December 31, 2013: 12,084 million yen / (28.8%)

Net income per share

For the Nine months
ended December 31,
2014
For the Nine months
ended December 31,
2013

Fully diluted net
income per share

YenYen31.98-43.80-(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

As of December 31,
2014

509,411205,115

39.9

As of March 31, 2014

475,288

198,031

41.3

Reference: Equity

As of December 31, 2014: 203,159 million yen

1

As of March 31, 2014: 196,411 million yen

2. Cash dividends
Cash dividends per share
Record date

First quarter

Second quarter

Third quarter

Fiscal year-endYen

Yen

Yen

Yen

Yen---

16.00

16.00

--

16.00

16.00

Fiscal year ended
March 31, 2014
Fiscal year ending
March 31, 2015
Fiscal year ending
March 31, 2015
(Forecast)

AnnualNote: Revision to the latest forecast announcement: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2015 (fromApril 1, 2014 to March 31, 2015)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
March 31, 2015

Operating income Ordinary income

Net income pershare

Net income

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Yen465,000

4.2

19,000(9.9)

21,000(8.0)

13,5000.4

52.12

Note: Revision to the latest forecast announcement: None

4. Others(1) Changes in Significant Subsidiaries during the Period (changes in specified subsidiaries
accompanying changes in the scope of consolidation): None
(2) Adoption of Specified Accounting Methods for the Preparation of Quarterly Consolidated FinancialStatements: None
(3) Changes in Accounting Policies and Accounting Estimates / Restatements
a. Changes in accounting policies due to revisions of accounting standards, etc.: Yes
b. Changes in accounting policies other than a. above: Nonec. Changes in accounting estimates: None
d. Restatements: None
(4) Number of issued shares (common stock)a. Total number of issued shares at the end of the period (including treasury stock)
As of December 31, 2014
260,324,529 shares
As of March 31, 2014
260,324,529 sharesb. Number of treasury stock at the end of the period
As of December 31, 2014
1,321,591 shares
As of March 31, 2014
1,310,312 sharesc. Average number of shares during the period
For the Nine months ended December 31, 2014
259,008,390 shares
For the Nine months ended December 31, 2013
259,034,745 shares*Presentation of Implementation Status of Quarterly Review Procedure
The review procedure of quarterly financial statements based on the Financial Instruments and Exchange Law
has not been completed at the time of the disclosure of these Consolidated Financial Statements.
*Proper use of earnings forecasts, and other special directions
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable. Actual
business and other results may differ substantially due to a number of factors.

2

5. Qualitative Information related to Consolidated Performance
Qualitative Information on Business Performance
During the first nine months of this fiscal year, although the US economy has continuouslyimproved, uncertainties have grown due to economic slowdowns in other regions, ongoinggeopolitical concerns and dramatic falls in crude oil prices. Preparations for investment innumerous gas-related facilities are under serious deliberation due to the continuing increase inenergy demand together with the present uncertainties. The Japanese economy has continued torecover only moderately, despite governmental monetary policies and the relative stability of theyen, with fluctuations caused by the consumption tax increase.
During these conditions the Chiyoda Group has continued to strengthen its core business in theconventional fields of oil and gas, in line with the strategies defined in its Medium-Term
Management Plan, and has maintained a high level of backlog. At the same time, we have been
accelerating our expansion into new business spheres, including pursuing development of offshore
and upstream business, and making further inroads into new and renewable energy businesses
such as the Hydrogen Supply Chain, utilizing Chiyoda’s own technologies, and Photovoltaic andConcentrating Solar Power generation.
Ongoing project execution continued smoothly, including for LNG plants in Australia and USA,refinery projects in Vietnam, Qatar and Venezuela, an international airport project in Mongolia, andin Japan, for LNG receiving terminals and photovoltaic power generation systems. Consequently,
new contracts for the period amounted to 649,447 million yen (373.5% increase year on year). The
backlog was 1,446,523 million yen (34.9% increase from the end of the previous fiscal year).
Revenues for the period amounted to 331,970million yen (7.9% increase year on year), operating
income amounted to 15,527 million yen (18.5% decrease), ordinary income to 14,496 million yen(23.7% decrease), and net income resulted in 8,282 million yen (27.0% decrease).
The decrease in incomes resulted from the increase in selling, general and administrative expensesof newly consolidated overseas subsidiaries, equity in losses of associated companies and delays
in recovery of overseas subsidiaries.

Highlights during this period for each segment are summarized hereunder:
LNG Plants/Other Gas Related Works
The Group booked a Front End Engineering Design (FEED) contract for an LNG plant in Indonesia
and was in parallel proceeding with FEED works for other LNG plants in Mozambique, Canada andthe USA. Engineering, Procurement and Construction (EPC) contract execution works of LNG
plants in Australia, USA and Russia have all progressed as planned. Our Qatari subsidiary has
been executing the Engineering, Procurement and Construction management (EPCm) works forthe maintenance and modification of existing LNG and gas processing plants, most of which wereoriginally built by the Group. In Japan, two EPC contracts have been completed and another EPC
contract is under execution for LNG receiving terminals, and the expansion/modification works ofexisting plants have been ongoing. LNG plants and other gas-related works are the Group’s corebusiness and, in this regard, we will continue to pursue any such projects whether onshore/offshore,
overseas/domestic or conventional/ unconventional.
Petroleum/Petrochemicals/Gas Chemicals
The Group was awarded an Engineering, Procurement, Construction and Commissioning (EPCC)
contract for a Residue Fluid Catalytic Cracking (RFCC) plant in Malaysia. EPC works have beenongoing for a refinery and petrochemical complex in Vietnam, a refinery project in Qatar and theEngineering, Procurement support and Construction management (EPsCm) work for heavy crude
oil upgrading facilities in Venezuela. Additionally, our subsidiary in Singapore has been performing
project management services under an Enterprise Framework Agreement for downstream projects
within Asia. In Japan, we have completed the EPC work for a Trans-Alkylation Unit and continued
to perform the diagnosis of existing facilities, maintenance and upgrading works, studies andconstruction works aimed at energy saving in the facilities, and studies to strengthen theinfrastructure of a refinery against a possible catastrophe.
3

Mining/Mineral Refining/General Chemicals/Industries/Environment
The Group has been moving forward with the EPC execution of a new international airport inMongolia and is preparing bids for further airport and/or railway projects. In an effort to expand ourwater-related business for medium-small sized water treatment projects into The Middle East, weare operating a demonstration plant for an industrial wastewater treatment/water recycling system
in Saudi Arabia and are establishing a framework within the Group to execute these works in The
Middle East and Asian regions. Meanwhile, we are also responding to the overseas expansion ofJapanese clients’ businesses in non-hydrocarbon fields. In Japan, we have won a number of EPC
works for large-scale photovoltaic power generation systems and are expanding our sales activities
by enhancing our group operation in this field. We are also heavily involved in the pharmaceuticalindustry and have executed several EPC works for active pharmaceutical ingredient facilities, andnanotechnology research development facilities in cooperation with industry, government andacademia, and bio-pharmaceutical facilities.
New Business Fields
The Group, in cooperation with our strategic alliance partner Xodus Group, started providing
integrated services in the offshore/upstream field especially for Japanese customers. TheEngineering, Procurement, Construction and Installation (EPCI) execution of a floating production
unit in Indonesia is progressing. The Group is actively proceeding with business activities for theSubsea/Subsurface Engineering field. For this purpose, we established a new company together
with Xodus Group and Saipem International BV and invested in another company established todevelop commercially viable technology for exploiting seabed methane hydrate. The Group
continues to operate a demonstration plant in Italy for a Concentrating Solar Power (CSP) systemwith the aim of developing EPC business opportunities in this field. Furthermore, we havedeveloped our own technology to transport and deliver large volumes of hydrogen and are actively
collaborating with various parties, foreign and domestic, with the aim of establishing a hydrogen
supply chain to achieve a hydrogen-based society.

Note: See Page 9 for more information on New Contracts, Net Sales and Backlog of Contracts bysegment.

46. Consolidated quarterly financial statements(1) Consolidated quarterly balance sheets(Millions of yen)

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts
Securities
Costs on uncompleted construction contracts
Jointly controlled assets of joint venture
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

5As of March 31,2014

As of December 31,2014

37,86836,85973,00561,678

107,499
33,826
127,466
29,433(3)
409,096

78,99956,835167,518
38,715(26)
440,580

6,862
5,265
2,829
14,958

7,382
5,265
2,311
14,95912,395
7,113
19,50911,678
7,563
19,241

28,3153,477(68)
31,724
66,192475,288

31,032
3,641(45)
34,62968,830509,411(Millions of yen)

As of March 31,2014 As of December 31,2014

Liabilities
Current liabilities
Notes payable, accounts payable forconstruction contracts
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Advances received on uncompleted
construction contracts
Provision for warranties for completed
construction
Provision for loss on construction contracts
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeMinority interests
Total net assets
Total liabilities and net assets

6

145,392

129,914

1,283
4
5,513

1,084
4
763

80,182

127,271

507

475

4,002
4,261
20,531
261,679

2,882
2,584
22,070287,050

10,018
365
2,080
3,113
15,578277,257

10,015
376
2,915
3,936
17,244
304,295

43,396
37,112
109,525(1,390)188,64443,396
37,112
113,084(1,403)
192,189

4,920

6,723

648
2,486(287)

735
3,524
(13)

7,767

10,970

1,619
198,031475,288

1,956
205,115
509,411(2) Consolidated quarterly statements of (comprehensive) income(Millions of yen)

Net sales of completed construction contracts
Cost of sales of completed construction
contracts
Gross profit on completed construction
contracts
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using
equity method
Other
Total non-operating incomeNon-operating expenses
Interest expenses
Share of loss of entities accounted for using
equity method
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary losses
Retirement benefit expenses
Total extraordinary losses
Income before income taxes and minority
interests
Income taxes - current
Income taxes - deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

7

Nine months ended
December 31, 2013

Nine months ended
December 31, 2014

307,748

331,970

274,584

299,038

33,16332,932

14,12019,042

17,404
15,527

1,043
1,178

1,120
1,071

17－

61
2,300

109
2,301

166

190

－

345

2,033
132
2,332
19,010

2,625
169
3,332
14,496

161
161

－
－

18,84914,496

5,023
2,160
7,184
11,664317
11,346

3,440
2,564
6,005
8,491
208
8,282

Consolidated quarterly statements of comprehensive income(Millions of yen)

Income before minority interests
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans,
net of tax
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to minority
interests

8

Nine months ended
December 31, 2013

Nine months ended
December 31, 2014

11,664

8,491(906)

1,803

(301)
1,584

87
1,108

－

273

42
419
12,08465
3,338
11,829

11,682

11,485

402

343

7.

Production, Contracts and Sales
Apr. 1, 2013 —Dec. 31, 2013

Reporting segments(Millions of yen)
Apr. 1, 2014 —Dec. 31, 2014
Backlog ofBacklog ofNew contracts Net sales
contracts
contracts(ratio)(ratio)(ratio)(ratio)New contracts(ratio)Net sales(ratio)133,83797.6%

304,309
98.9%

763,932
100.0%

645,84299.4%

328,64499.0%

1,445,936
100.0%LNG Plants

31,770126,310436,076

523,921173,143

1,139,871

23.2%

41.0%

57.1%

80.7%

52.1%

78.8%

Other Gas Related Works

8,176

35,466

27,46438,99927,83231,858

6.0%

11.5%

3.6%

6.0%

8.4%

2.2%

Petroleum/Petrochemicals/
Gas Chemicals
Mining/ Mineral
Refining/Offshore
General chemicals/Industrial Facilities
Environment/New Energy/
Infrastructure

36,99027.0%53,412
17.4%

213,66928.0%

44,806
6.9%

75,56322.7%

196,315
13.6%

310
0.2%

4,289
1.4%

43
0.0%

2,838
0.4%

637
0.2%

2,314
0.1%

17,42974,95236,09021,07329,092

34,327

12.7%

24.4%

4.7%

3.2%

8.8%

2.4%

34,1408,382

46,593

10,331

18,17337,279

24.9%

2.7%

6.1%

1.6%

5.5%

2.6%

5,019
3.6%

1,495
0.5%

3,993
0.5%

3,872
0.6%

4,202
1.3%

3,970
0.3%

3,326
2.4%

3,438
1.1%

274
0.0%

3,604
0.6%

3,325
1.0%

586
0.0%

137,163

307,748764,206

649,447

331,970

1,446,523

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

66,674
48.6%

96,391
31.3%

97,52312.8%

75,53911.6%

82,89525.0%

95,5706.6%

70,488211,356

666,683

573,907249,075

1,350,952

51.4%

68.7%

87.2%

88.4%

75.0%

93.4%

Engineering

OthersOther Business
Total
Domestic
OverseasNote1:

Note2:The backlog of contracts for the nine months ended December 31, 2014 includes a decrease due tochanges in construction contracts acquired in prior fiscal years, an increase due to adjustments in newcontract amounts, and an increase due to foreign exchange translation adjustments.
The total amount of the above table does not include consumption tax.

9