Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

Abridged Translation:
The report is not audited and this translation is an abridged version prepared based on the statutory format
in Japan for reference purpose only. If there is any discrepancy between this translation and the original
Japanese version, the Japanese shall prevail.

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2020
May 8, 2020
Company name:
Listing:
Stock code:
URL:
Representative:
Inquiries:TEL:

CHIYODA CORPORATION
Second Section of the Tokyo Stock Exchange
6366
http://www.chiyodacorp.com/
Masaji Santo, President& COO
Masaru Akiyama, GM, Accounting Department+81-45-225-7745

Date of general shareholders' meeting:
Dividend payable date:
Supplementary Explanation Material:
Financial Results Presentation:

June 25, 2020
Yes
Yes

Annual securities report filing date: June 25, 2020-

(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated performance for the fiscal year ended March 31, 2020
(1) Consolidated operating results(Percentages indicate year-on-year changes)

Net sales
Millions of yen

Operating income%

Millions of yen

Fiscal year ended
385,925
12.9
26,789March 31, 2020
Fiscal year ended
341,952(33.1) (199,795)
March 31, 2019
Note: Comprehensive Income:Fiscal year ended March 31, 2020:
Fiscal year ended March 31, 2019:
Net income Fully diluted net
per share income per share
Fiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2019
Reference: Equity

Profit attributable toowners of parent

Ordinary income%

Millions of yen%

Millions of yen%

18,644-

12,177-(192,998)-(214,948)-

14,374
million yen / (－) %(216,488) million yen / (－) %Return on
Equity(ROE)

Ratio of ordinary
Ratio of operating
Income to Total assets income to revenue

Yen

Yen

%

%

%

40.94

15.51

-

5.1

6.9

(830.02)-(441.2)(50.0)(58.4)

Fiscal year ended March 31, 2020:
Fiscal year ended March 31, 2019:

361 million yen
194 million yen(2) Consolidated financial position
Total assets
As of March 31, 2020
As of March 31, 2019
Reference: Equity

Millions of yen

Net assets

Equity ratio

Millions of yen

385,051
24,943352,341(59,154)
Fiscal year ended March 31, 2020:
Fiscal year ended March 31, 2019:

Net assets per share%

6.3(17.1)
24,423 million
60,114 million

Yen(182.07)(232.13)

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

(3) Consolidated Cash Flow
Net cash provided by

Investing Activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen(32,525)(7,828)89,200115,932(37,941)

778

4,020

68,306

Fiscal year ended
March 31, 2020
Fiscal year ended
March 31, 2019

Financing Activities

Cash and equivalents,
end of period

Operating activities

2. Cash dividends
Cash dividends per share
Record dateFiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2020
Fiscal year ending
March 31, 2021
(Forecast)First quarter

SecondquarterThird quarter

Fiscal yearend

AnnualPayment of Payout ratio Dividend on
cash(consolidate) equity ratio
dividends

Yen

Yen

Yen

Yen

Yen Millions of yen

%

%

－

－

－

0.00

0.00

0

－

0

－

－

－

0.00

0.00

0

0.0

0.00

－

－

－

0.00

0.00

－

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2021
(from April 1, 2020 to March 31, 2021)
Chiyoda is still currently assessing the impact of COVID-19 and the resulting changes to the businessenvironment, including the stagnation of the global economy, which caused the sharp decrease in energy
demand and the drop in crude oil and gas prices. The business outlook and earnings forecasts havetherefore not been determined. Full year forecasts for the fiscal year ending March 2021 will be announced
when available.

4. Others(1) Changes in Significant Subsidiaries during the Period(changes in specified subsidiaries accompanying changes in the scope of consolidation): None
(2) Changes in Accounting Policies and Accounting Estimates / Restatements
a. Changes in accounting policies due to revisions of accounting standards, etc.:
b. Changes in accounting policies other than a. above:c. Changes in accounting estimates:
d. Restatements:

Yes
None
None
None

(3) Number of issued shares (common stock)a. Total number of issued shares at the end of the period (including treasury stock)
As of March 31, 2020
260,324,529 shares
As of March 31, 2019
260,324,529 sharesb. Number of treasury stock at the end of the period
As of March 31, 2020
1,357,497 shares
As of March 31, 2019
1,357,156 sharesc. Average number of shares during the period
Year ended March 31, 2020
258,967,168 sharesYear ended March 31, 2019258,967,495 shares###This report is not reviewed by auditor.
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 otherresults may differ substantially due to a number of factors.
Change of date format
From “March 2019 First Quarter Financial Results”, the date format from Japanese calendar changed to Gregoriancalendar.

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

Table of Contents for the appendices1.

Qualitative Information Related to Consolidated Performance ................................................... 2(1)

Qualitative Information on Business Performance ............................................................... 2(2)

Financial Information on Business Performance .................................................................. 4(3)

Outlook................................................................................................................................ 4(4)

Dividend Policy and Current/Next-Period Dividend Payments ............................................. 5(5)

Business Risks .................................................................................................................... 5

2.

Basic Concept of Accounting Criteria ......................................................................................... 73.

Consolidated financial statements ............................................................................................. 9

4.

(1)

Consolidated balance sheets .............................................................................................. 9(2)

Consolidated statement of income and comprehensive income ......................................... 11(3)

Consolidated statement of changes in equity ..................................................................... 11(4)

Consolidated statement of cash flows ................................................................................ 14(5)

Notes on Consolidated Financial Statements .................................................................... 17

Production, Contracts and Sales.............................................................................................. 191

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

1. Qualitative Information Related to Consolidated Performance(1) Qualitative Information on Business Performance
The stagnation of the world economy this fiscal year due to COVID-19 and the oil price slump due tooversupply and the failure of oil producing countries to reach an agreement on limiting oil production, is
expected to result in a sharp decrease in energy demand. The business environment surrounding Chiyoda,
including the energy supply-demand imbalance, is radically changing and a severe outlook is anticipated
where the future cannot be predicted.
Under these extraordinary circumstances, the Group continues to steadily execute ongoing projects in theenergy and global environment fields worldwide, including the construction of large-scale LNG plants.
In May 2019, Chiyoda launched a new medium-term management plan: “Chiyoda’s Revitalization Plan –Initiatives for Revitalization and the Future” and in July the same year, Chiyoda strengthened its financialbase with increased shareholder equity through a third party allocation of shares, valued at JPY 70 billion,
to Mitsubishi Corporation. To solidify revitalization and growth, a Strategy & Risk Integration (SRI) Division
was also launched in July 2019 to implement a rigorous and comprehensive risk management structure,from project award to completion, and enhance EPC management utilizing digital technology. Concurrently,
Chiyoda restructured its organization and business operations aiming to diversify its business portfolio
towards steady growth. In July 2019, a Digital Transformation Division was established to innovate business
operation through company-wide digitalization, leading to work-life balance reform. In October 2019, a
Frontier Business Division was established to diversify the business portfolio by redefining the value ofengineering.
On consolidated basis, for the fiscal year ending March 31, 2020, New Orders amounted to 179,836 million
yen (down 76.7% YoY), Revenues to 385,925 million yen (up 12.9% YoY), Backlog to 811,847 million yen(down 20.1% YoY). Operating income came to 26,789 million yen (compared with previous year’s
consolidated operating loss of 199,795 million yen), affected by foreign exchange loss of 10,192 million yen
on foreign currency-denominated trade receivables and payables as a non-operating expense due tofluctuations in the exchange rate. Ordinary income amounted to 18,644 million yen (compared with previous
year’s consolidated ordinary loss of 192,998 million yen). Extraordinary gains of 363 million yen related tothe sale of shares of an affiliated companies and reversal of reserve of 232,000 million yen for the losses
due to the business restructure of the Group already recorded in the previous consolidated fiscal year.
Extraordinary loss of 122,000 million yen recognized due to evaluation of investment securities and goodwill
impairment loss of 67,000 million yen. In addition, corporate tax of 7,120 million yen were recorded due toa decrease in the balance of deferred tax liabilities and other factors and resulted in a corporate tax
adjustment amount of -105,000 million yen. Net Profit attributable to owners of the parent came up to 12,177
million yen (compared with previous year’s consolidated loss attribute to owners of parent of 214,948 million
yen).
Reportable engineering business activities are summarized below:
 Energy
LNG / Gas
【Overseas】
Chiyoda is in the EPC phase on projects in the USA, Indonesia and Mozambique. For ongoing large-scale
projects, the third train of Freeport LNG project commenced commercial operation in early May andtherefore all trains commenced commercial operation. The second train of Cameron LNG commenced
commercial operation and the third train is progressing towards commercial operation. The EPC phase ofGolden Pass LNG is also progressing. In Qatar, Chiyoda is in the EPC phase of a helium production facility,
we are modifying and revamping LNG/gas processing plants previously constructed by Chiyoda and arepreparing an EPC proposal for the North Field Expansion project, comprising 4 x 7.8 million
ton/annum trains.

2Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

【Japan】
Renovations and modifications are underway on Chiyoda’s previously constructed LNG receiving terminals
and seismic upgrades of facilities under the Basic Act for National Resilience are progressing.
Refinery/Petrochemical/Metal【Overseas】
Chiyoda is executing a large-scale ethylene plant EPC project on the Gulf Coast in the USA. In Malaysia,
Chiyoda is executing EPCC (EPC plus Commissioning) on a Residue Fluid Catalytic Cracking (RFCC) plantand EPC on a petrochemical tank terminal project. In Southeast Asia, the Group has completed the EPC ofa refinery and petrochemical plant.
【Japan】
The Group has completed the EPC for offsite construction and renovation of existing refining facilities toreduce sulfur content in bunkering fuel according to new 2020 regulations, as well as other revamping andmodification work. The Group continues to renovate existing refining facilities to increase theircompetitiveness.
 Environment
Pharmaceutical/Biochemistry/General Chemistry
Chiyoda has completed the EPC phase of a middle molecule pharmaceutical production facility and is
executing the EPC of a synthetic raw materials plant for medicines, functionalized chemical facilities and ahydrogenated petroleum resin production plant.
Chiyoda is collaborating with MIRAI Co. Ltd, a major production and administration company promoting the
introduction of commercial facilities, on a vegetable growing facility and has been awarded by Qatar
University for a pilot vegetable factory project.
Environment/New Energy/Infrastructure【Overseas】
Chiyoda has implemented its thoroughbred 121 (CT-121) Process to flue gas desulfurization facilities on
existing coal fired plants in India.
【Japan】
In the environment field, Chiyoda is executing the EPC for fuel gas desulfurization facilities on existing coal
fired plants and CO2 separation unit demonstration facilities. In the new energy field, Chiyoda is executing
the world’s largest Battery Energy Storage System Project, photovoltaic (mega solar) facilities and thelargest capacity biomass firing plant in Japan. Chiyoda is also considering participating in a floating offshore
wind farm, an area where we anticipate further opportunities.
A hydrogenation plant in Negara Brunei Darussalam and a dehydrogenation plant in Japan have been
completed and a display plant is undergoing to demonstrate the development of “Advanced Hydrogen
Energy Global Supply and Transportation” promoted by an organization established jointly with Mitsubishi
Corporation, Mitsui & Co., Ltd. and Nippon Yusen (NYK Line). Chiyoda and Mitsubishi Corporation haveentered into a Memorandum of Understanding (MOU) with five (5) companies in Singapore to collaborate
towards Singapore’s sustainable hydrogen economy using Chiyoda’s highly regarded safe technology.
Chiyoda also aims to develop its hydrogen importation and consumption business with our key technology.
Chiyoda has also entered into an MOU with Hazer Group Limited in Australia to collaborate on commercial
activities in Japan, using the Hazer Process to produce and supply hydrogen without the need to store
carbon-dioxide utilizing methane as a feedstock to produce hydrogen and graphite.
 Digital Technology
In a tie-up agreement with GRID Inc., the Group aims to develop a new digital technology business byimplementing AI technologies on plants to improve productivity. Chiyoda has also developed AI to optimize
the productivity of PT. Donggi-Senoro LNG (Indonesia) plants, aiming to introduce the technology worldwide.

3

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

Chiyoda has signed an MOU with Abu Dhabi Gas Liquefaction Co. (UAE) to provide state-of-the-art digitaltechnologies for their LNG Plant, targeting early introduction to improve plant reliability.
Chiyoda is also implementing the company-wide "Target 20" campaign to improve EPC management, work
efficiency and corporate management practices. Chiyoda applies Advanced Work Packaging (AWP) toenhance project planning and control on current and future projects.

(2) Financial Information on Business PerformanceThis section is not translated.

(3) Outlook

1) Forecast of next Fiscal Year income related items
Chiyoda is currently assessing the impact of COVID-19 and the resulting changes to the businessenvironment, including the stagnation of the world’s economy, which caused the sharp decrease in energy
demand.
Business and earnings forecasts for the fiscal year ending March 2021 will therefore be announced whenavailable.
2) Management policy, business environment and others
In the previous consolidated fiscal year, the Group recorded negative retained earnings due to unexpected
additional costs on ongoing projects and a reassessment of litigation and arbitration risks.
At the Board of Directors meeting on May 9, 2019, Chiyoda agreed the issuance of preferred shares by athird party allocation and the borrowing of funds by Mitsubishi Corporation and Mitsubishi UFJ Bank Ltd tojudiciously eliminate negative net worth. Chiyoda and the two companies also signed a basic frameworkagreement for a Financial Restructuring Plan, which strengthened the financial and business base.
The Group has formulated a new Medium-Term Management Plan (MTMP): ‘Revitalization for the Future’
redefining the direction of growth and describing Chiyoda’s development of a new risk management
structure, enhancement of EPC execution management capabilities and reinforcement of humanresources management.
Risk Management is conducted throughout the entire project lifecycle, from order receipt to handover, bya ‘Strategy and Risk Integration Division’ newly launched on 1 July 2029. The Company also strives tostrengthen its corporate governance through increased external management supervision and execution
control.
Chiyoda’s Construction Division was established under the Energy Project Operation Division on 1 April
2020 to reinforce construction, commissioning and human resources performance. The Company also
promotes integrating digital technologies in the areas of cost, schedule, quality control, design,
procurement and construction and to improve project management.
For ongoing large-scale projects, Freeport LNG project was completed in early May 2020. The second
train of Cameron LNG was completed in February 2020 and the third Train is nearing completion. Progressof Tangguh Expansion Project is approximately 80% and construction activities are ongoing.
A Human Resource Development Policy has been established to reinforce management of humanresources and Chiyoda regularly reviews its personnel management systems to realize optimal humanresource development in the medium and long-term.
A “daily action guideline” has been established as a new philosophy for employees to better understandthe Revitalization Plan, facilitate an increased sense of responsibility at work, improve social values,
enhance risk management and amplify the significance of human resources. The Company continuous totransform its culture through these initiatives to realize sustainable growth.

4Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

COVID-19 has drastically changed Chiyoda’s business environment. As always, the Company prioritizes
the health and safety of its employees and related parties and has imposed restrictions as required,including the temporarily suspending production and transportation and restrictions on dispatched
construction supervisors and mobilization of site workers. Assessment of the impacts on ongoing projects
and the implementation of mitigating measures continues. The Company has also commenced discussions
with customers and subcontractors regarding increased costs and schedule delays and is closely
monitoring the situation on the understanding that customer investment plans will be reviewed.
The new MTMP redefines engineering values and outlines optimized approaches for improving EPC
execution and using new technologies.
A new ‘Frontier Business Division’ was established in October 2019 to promote three business pillars: 1.
Low carbon, clean technical innovation businesses, 2. new utility business using decentralized and digital
data and 3. Pharmaceutical and life sciences business.
Chiyoda’s Digital Transformation Division develops digital products to optimize customer asset values bycombining the Company’s engineering proficiency with digital/AI technology and big data analysis whilst
developing sophisticated human resource expertise
Chiyoda’s IT business domain, owned by its subsidiary Chiyoda System Technologies TIS Inc., a major IT
company, have established a joint venture to develop the Company’s IT infrastructure.

(4) Dividend Policy and Profit Distribution for the current and next period
Continuing from the previous consolidated fiscal year, the current surplus carried forward is negative andthe management regrets it is unable to pay a dividend in fiscal year 2019.
Although the Company will return to paying shareholder dividends as soon as possible, the management
regrets that year-end dividends for the next fiscal year remain undecided due to the Company’s revitalization
process and COVID-19
Business, earnings and dividend forecasts will be announced when available.

(5) Business Risks
Business risks with the potential to influence investor decision making may significantly affect Chiyoda’sbusiness operations and finances. The Group has therefore implemented plans to mitigate such risks andminimize their consequences, including those identified below for the current fiscal year.

(a) Risk of the Novel Coronavirus
In response to the 2019-nCoV novel Coronavirus outbreak, international travel bans were announced
and restrictions were implemented impacting global supply chains.
As always, the Company prioritizes the health and safety of its employees and related parties andhas imposed restrictions as required, including limiting customer and subcontractor interviews,
temporarily suspending production and transportation restrictions on dispatched construction
supervisors and mobilization of site workers. Assessment of the impacts on ongoing projects and theimplementation of mitigating measures continues. The Company has also commenced discussions
with customers and subcontractors regarding increased costs and schedule delays and is closely
monitoring the situation on the understanding that customer investment plans will be reviewed.
(b) Impact of global economic, political and social changes
Global economic, political and social changes include new political and social conditions, tradeprotectionism, economic sanctions, diplomatic tensions, energy policy changes and fluctuating market
trends and prices for crude oil, LNG and metal resources. Chiyoda’s business performance could be
adversely affected by cancellations, postponements or deterioration in the financial conditions of clients.

5

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

The Company closely monitors economic and social changes during procurement activities regardlessof timing, such as the recent oil price slump, and shares related risks with customers and business
partners. The Company’s due diligence of potential business partners, assessment of transaction risks
and conditions and alternative partner investigations minimize the consequences of such risks.
(c) Natural disasters, terrorism, war and other Force Majeure events
Force Majeure events such as natural disasters (e.g.: earthquakes, heavy rains or floods), terrorism or
war have the potential to materially impact project sites and local businesses. Disruption may include
personnel life crises, delays in equipment or material delivery and suspension of construction work. As
the health and safety of its employees and affected third parties is the Group’s highest priority, a Crisis
Management Unit compiles and analyzes information to prevent human suffering or harm. The Grouphas established, and is reinforcing, the crisis management system, which advocates the employmentof professional security advisors in the regions requiring particular attention. Additionally, the Group
maintains a risk management system to rapidly react to situations and immediately respond to an
emergency, including consulting with clients and/or parties concerned to minimize Force Majeure risk.
The Group has formulated a Business Continuity Plan (BCP) for unexpected events to take immediate
effective action and execute priority tasks. The Group also ensures business continuity by conducting
emergency response training.
(d) Equipment and material cost fluctuations
Under certain contracts, the Group may be exposed to material and equipment cost fluctuation risk
due to the time difference between quotation and purchase. Specifically the price of steel, whichconstitutes a major part of plant construction, could be severely impacted by a rise in commodity prices
such as coal and iron ore. Future market prices of copper, nickel, aluminum and zinc are similarly
unpredictable.
The Group minimizes fluctuation risks by diversifying supply sources, placing orders early, maintaining
alliances with major vendors/suppliers and identifying market trends.
(e) Construction resource risks
A project may experience delay’s and/or cost impacts if sufficient quantities of construction labour,
equipment and materials or other resources cannot be procured.
The Group minimizes construction resource risks by applying alternative construction methods (eg:modular construction) in countries with severe climates and/or where construction resources are
scarce and by collaborating with subcontractors, vendors and suppliers through effective
communication channels. If construction is suspended due to labour disputes etc, the Group minimizes
risk by taking appropriate action in collaboration with clients and local authorities.
In addition, in the event of effects of the new corona virus, pandemics diseases, strikes, etc., if it
becomes necessary to suspend construction work, the Company will take appropriate action incooperation with its customers and related local organizations to minimize the impact.
(f) Health and safety
Health and Safety is paramount throughout the Chiyoda Group. All practicable measures are
implemented by the Company to minimize risks to personnel affected by its operations throughout all
project phases and the Group collaborates with clients to proportionally share their impact. Chiyoda’s‘C-Safe’ Behavioral Based Safety program is specifically designed to address the challenges andcomplexity of health and safety management on projects. With a strong focus on leadership and worker
involvement and commitment, C-Safe requires all personnel to consciously think about their actions
and behaviors.
(g) Exchange rate fluctuations

6

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

Payments to subcontractors, vendors and/or suppliers on a project may not be in the same currency
as that received from a client and exchange rate fluctuation risks will affect earnings. The Group
minimizes the impact of such risks by reserving construction payments in foreign currencies andentering into exchange rate forward contracts.
(h) Compliance management
The Group’s is required to comply with laws, acts and regulations in the country or region of operation.
Penalties for breaching local laws or regulations could have serious impacts for a project and theoperation of the Group as whole. The Group therefore trains employees in local laws, acts, regulations
or rules related to its business operations worldwide, including those for human rights and anti-bribery.
The Group works collaboratively with all stakeholders, including regional government and local
authorities, and incorporates compliance in its operating processes through a Compliance Committee
chaired by a Chief Compliance Officer (CCO) and attended by all Division Directors and Group
Company Compliance Liaison Meetings chaired by the CCO and attended by Group company
representatives.
(i) Information security
The Group manages all client, subcontractor, equipment and material supplier and other service
provider information with the utmost confidentiality. Although information leakage may be caused by IT
system malfunction, infection by viruses, external unauthorized access or cyber-attacks, the Group,
including main subsidiaries and global headquarters, holds Information Security Management System(ISMS) certification. Stringent and comprehensive information security management procedures
including training, auditing and defensive and minimizing measures, are implemented under its
business continuity plan.
(j) Business investment risk
The Group pursues the growth strategy in the MTMP by investing in new business, including
establishing a new company or purchasing an existing company. The Group implements rigorous rules
and standards when conducting feasibility studies prior to investing to minimize exposure to businessenvironment downturn risk and other investment risks adversely affecting costs and earnings.
Following investment, the Group regularly monitors progress and provides support as required tonegate or minimize loss.
(k) Risk Related to the Ichthys LNG Project
Arbitration was filed by JKC Australia LNG Pty Ltd (JGC, KBR and Chiyoda joint venture) on a plantalready handed over to the client as described below. Unfavorable outcomes will result in uncollectable
construction receivables and replacement costs which may affect Group business performance.
① Disputes with client
Outstanding issues include scope of work changes and associated additional costs and contract priceadjustment.
② Dispute with subcontractor
Arbitration to resolve a dispute with a subcontractor consortium awarded a lump sum contract
consisting of General Electric Company, General Electric International Inc., UGL Engineering Pty Ltd
and CH2M Hill Australia Pty Limited.
Basic Concept of Accounting Criteria
The Chiyoda Group presents consolidated financial statements based on Japanese accounting criteria
in consideration for comparison with those for the previous fiscal term as well as comparison with theother company financial statements. The Group will follow international accounting criteria in due
course after examining the trend of Japanese engineering contractors.

7

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

2. Basic Concept of Accounting Criteria
At present, in consideration of the comparability of the consolidated financial statement, the Groupconsiders the application of Japanese standards for is appropriate. In regards of the application ofInternational Financial Reporting Standards, it is the Group’s policy to respond according to the trendsof other companies in the same industry in Japan.

8Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

3. Consolidated quarterly financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2019

As of March 31, 2020

69,457

124,404

68,611

61,182

7,494

5,261

65,94568,712110,967

96,028

5,707(1,254)
326,929

6,041(1,243)360,387

13,524(8,063)
5,461
512
(381)
130
6,404
(5,507)
897
4,952
272

15,035(8,857)
6,177
748
(478)
270
6,073
(5,291)
782
5,085
137

11,714

12,454

5,298

4,912

6,393
5
701
1,473
(174)

5,598
－
599
1,271
(172)

8,398

7,296

25,411
352,341

24,663385,051

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts
receivable from completed
construction contracts
Costs on construction contracts inprogress
Accounts receivable - other
Jointly controlled assets of joint
ventureOther
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and vehicles
Accumulated depreciation
Machinery and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant andequipment
Intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and otherassetsTotal non-current assets
Total assets

9Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

(Millions of yen)
As of March 31, 2019

As of March 31, 2020

175,277

137,546

118

122

708

1,212

122,252

119,911372

860

67,63734,8713,011
1,825
21,300392,505

4,150
401
20,802319,878

15,870
267
1,546
1,305
18,989411,495

35,747
239
1,986
2,255
40,229360,10743,396
37,112(139,956)(1,435)(60,882)

78,396
72,128(127,778)(1,435)21,310

(5)

58

(50)

6

(102)

3,033

926

13

767

3,112

960
(59,154)352,341519
24,943385,051

Liabilities
Current liabilities
Notes payable, accounts payable forconstruction contracts
Current portion of long-termborrowings
Income taxes payable
Advances received on construction
contracts in progress
Provision for warranties forcompleted construction
Provision for loss on construction
contracts
Provision for bonuses
Provision for business restructuring
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provision for treatment of PCB waste
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive
incomeValuation difference on available-forsale securities
Deferred gains or losses on hedges
Foreign currency translation
adjustment
Remeasurements of defined benefit
plans
Total accumulated othercomprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

10Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

(2) Consolidated statement of income and comprehensive income(Consolidated statement of income)(Millions of yen)

Fiscal year ended
March 31, 2019
Net sales of completed construction
contracts
Cost of sales of completed construction
contracts
Gross profit (loss) on completed
construction contracts
Selling, general and administrative
expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted forusing equity method
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Commission expenses
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of shares of subsidiaries
and associates
Reversal of provision for businessrestructuring
Total extraordinary income
Extraordinary losses
Loss on valuation of investment
securities
Impairment loss
Provision for business restructuring
Loss on retirement of non-current assets
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controllinginterests
Profit (loss) attributable to owners of parent

11

Fiscal year ended
March 31, 2020

341,952

385,925

523,101

343,101(181,148)

42,82318,647

16,033(199,795)

26,789

2,877
425

2,649
201

194

361

3,638
226
7,362

－
289
3,502

238
－
57
269
565
(192,998)

727
10,192－727
11,647
18,644

979

363

－

232

979

595

－

122

－
1,825
335
2,161
(194,181)
11,090
10,58021,670(215,852)

67
－
－
190
19,050
7,120
(105)
7,015
12,034

(903)

(142)

(214,948)

12,177

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

(Millions of yen)
Fiscal year ended
March 31, 2019
Profit (loss)
Other comprehensive income
Valuation difference on available-forsale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit
plans, net of tax
Share of other comprehensive incomeof entities accounted for using equity
methodTotal other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable tonon-controlling interests

12

Fiscal year ended
March 31, 2020

(215,852)

12,034

(69)

64

1,719
(1,348)

56
3,197

(87)

(912)

(850)

(66)

(636)
(216,488)

2,339
14,374(215,638)

14,522

(849)

(148)

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

(3) Consolidated statement of changes in equity
Previous consolidated fiscal year (April 1, 2018- March 31, 2019)
This section is not translated.

Current consolidated fiscal year (April 1, 2019-March 31, 2020)
This section is not translated.

13

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

(4) Consolidated statement of cash flows(Millions of yen)

Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in provision for loss on
construction contracts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for businessrestructuring
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted forusing equity method
Loss (gain) on sales of investment securities
Loss (gain) on sales of shares of subsidiaries andassociates
Decrease (increase) in trade receivables
Decrease (increase) in costs on construction
contracts in progress
Increase (decrease) in trade payables
Increase (decrease) in advances received on
construction contracts in progress
Decrease (increase) in accounts receivable - other
Decrease (increase) in jointly controlled asset of
joint venture
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes (paid) refund
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities

14

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

(194,181)
2,816
－
41

19,050
3,174
67
40

1

(10)

(52)

491

64,409(31,906)

(874)

1,139

1,825

(1,290)63(3,303)
238
(980)

(146)
(2,851)
727
(59)

(194)

(361)

-

122

(979)

(363)

7,908

7,291

8,149

2,194

28,180(34,702)46,210(1,285)(23,097)(3,960)20,055

14,830(1,353)(45,116)
1,158
(215)
6,230
(37,941)(1,286)(29,094)
1,439
(719)
(3,841)(32,217)

1,150
(642)

(7,358)
(560)

3

91

(1,611)(109)(1,702)(9)

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

Proceeds from sales and redemption of
investment securities
Proceeds from sales of shares of subsidiaries andassociates
Proceeds from liquidation of subsidiaries andassociates
Loan advances
Collection of loans receivable
Other, net
Net cash provided by (used in) investing activities

15

1,791

－

－

1,116

138

－

(2)
59
－
778

(7)
604
(2)
(7,828)

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

(Millions of yen)

Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of shares
Dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

16

Fiscal year ended
March 31, 2019

Fiscal year ended
March 31, 2020

6,220
(231)
－
(1,939)(29)
4,020

20,000(118)
70,000(0)(680)
89,200(317)(1,528)(33,461)

47,626

101,767
68,30668,306
115,932

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

(5) Notes on Consolidated Financial Statements(Notes on Assumptions for a Going Concern)
Not Applicable
Change of Accounting Policy(Application of IFRS 16 “Lease”)
IFRS 16 “Leases” accounting standards have been applied to overseas consolidated subsidiaries
excluding the United States from this fiscal year.
(Application of ASU 2014-09 “Revenue from Contracts with Customers”)
The effect of application of the above on the consolidated financial statements is immaterial. For
overseas
consolidated subsidiaries that US GAAP, ASU 2014-09 ” is applied. The effects this change will haveon business performance are minor.
Additional Information(Additional information on business separation)
At the Board of Directors meeting held on January 28, 2020 it was decided that Chiyoda
Corporation’s IT business domain, Chiyoda System Technologies (“CST”), will be transferred to a
splitting company (“Splitting Company”), established through an incorporation–type company splitof CST. Part of the Splitting Company shares will be transferred to TIS Inc. Conditions to be fulfilled
on February 28 of the same year. The internal approval of this transaction was reached, and on thesame day, the share transfer agreement was reached with TIS Inc.
(1) Purpose of Company Split
CST provides clients with IT solutions covering project management, project control andoperational control of industrial plants to resolve business challenges. To further improve
performance as an IT solution provider, Chiyoda and CST will develop CST’s IT capability incollaboration with TIS Inc., a first class integrated IT enterprise in Japan and will execute a
company split of CST and transfer the Splitting Company’s shares to TIS Inc.
(2) Effective date of the Company Split
October 1, 2020 (planned)(3) Rights and Obligations of Splitting Company
The Splitting Company succeeds part of assets, debts and contracts related to the IT businessdomain which CST owns before the effective date of the company split.

Segment Information
This section is not translatedInformation per share
This section is not translated

17

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

Significant subsequent events
At the Board of Directors meeting held on May 8, 2020, the Company resolved to discuss the
reduction of share capital and disposal of capital surplus at the 92nd Ordinary General Meeting of
Shareholders to be convened on June 25, 2020.
1. Purpose of reducing share capital and share disposal of surplus
The purpose of reducing the amount of capital stock and disposal of surplus is to eliminate thecumulative loss of the previous fiscal year to improve the company’s financial condition.
2. Details of decrease in capital(1) Amount of reduced capital
The capital of ¥ 78,396,406,450 yen was reduced to ¥ 15,014,832,038 yen
The amount of capital reduction is ¥ 63,381,574,412.
(2) Method of reducing the amount of capital
The total number of issued shares remain unchanged. The total amount of theshare capital of 63,381,574,412 yen will be transferred to capital surplus.

3. Contents of disposal of surplus
Capital surplus of ¥ 135,494,220,412 yen (sum of capital surplus of 72,112,646,000 yen and
63,381,574,412 yen stated above) will be transferred to retained earnings. As a result, thebalance of retained earnings will be zero (0) yen.
(1) Items and amount of surplus to be reduced
Capital surplus 135,494,220,412 yen(2) Increased surplus and amount
Retained earnings 135,494,220,412 yen
3.

Schedule
Board Resolution
Ordinary General Meeting of Shareholders
Date of Notice of Objection of Creditors
Deadline for objections of Creditors
Effective date of capital reduction18

May 8, 2020
June 25, 2020
June 26, 2020
July 27, 2020
August 7, 2020

(planned)(planned)(planned)(planned)Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2020

Production, Contracts and Sales(Millions of yen)
Apr. 1, 2019 － Mar 31, 2020

Apr. 1, 2018 － Mar 31, 2019
New
contracts(ratio)Net sales(ratio)Backlog ofcontracts(ratio)New
contracts(ratio)Net sales(ratio)Backlog ofcontracts(ratio)768,199

338,592

1,016,356

179,056

385,144811,847

99.6%

99.0%

100.0%

99.6%

99.8%

100.0%

409,075

188,844544,082

65,196

179,503435,962

53.0%

55.2%

53.5%

36.2%

46.5%

53.7%

12,344

2,708

13,405

5,334

4,545

14,181

1.6%

0.8%

1.3%

3.0%

1.2%

1.7%

227,083

60,191

311,087

63,673

128,599

242,946

29.4%

17.6%

30.6%

35.4%

33.3%

29.9%

Pharmaceutical/Biochemistry/
Chemical

21,961

28,83624,012

19,042

24,922

20,064

2.9%

8.4%

2.4%

10.6%

6.5%

2.5%

Environment/New
Energy/Infrastructure

90,04548,354

116,734

19,72839,671

96,583

11.7%

14.2%

11.5%

11.0%

10.3%

11.9%

7,689

9,656

7,034

6,079

7,903

2,109

1.0%

2.8%

0.7%

3.4%

2.0%

0.3%

3,360

3,360

-

780

780

-

0.4%

1.0%

-

0.4%

0.2%

-

771,559

341,952

1,016,356

179,836

385,925

811,847

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

196,535

120,400

217,526

95,834133,080

179,559

25.5%

35.2%

21.4%

53.3%

34.5%

22.1%

575,023

221,552

798,830

84,002

252,844632,288

74.5%

64.8%

78.6%

46.7%

65.5%

77.9%

Engineering
LNG Plant
Gas
Development/Processing/Receiving
Refinery/Petrochemical/Metal

OthersOther Business
Total
Domestic
Overseas

Note:

The total amount of the above table does not include consumption tax.

19