CHIYODAREPORT

2022

INTRODUCTION

Pioneering a Carbon
Neutral Future with
New Value inEngineering
The Chiyoda Group published ‘Legacy for the
Twenty-first Century’ in 1972, advocating theadvancement of the human race in harmony withnature, while declaring its commitment to resolve
energy and environment challenges throughengineering and technological development.
In the 50 years since the publications release, theChiyoda Group has significantly influenced global
harmony between energy and the environment.
We will continue contributing to carbon neutrality
by combining our corporate strengths with technological innovation and creating new value in engineering to support the global drive towards acarbon free, hydrogen-based society.

OUR MATERIALITY
Following an assessment of our business goals andwith the aim of resolving global issues andrealizing economic growth,
Sustainable Development Goals (SDGs)
7, 9, and 13 are high priority for the Group.

1

INTRODUCTIONINTRODUCTIONCONTENTSINTRODUCTION
3 Corporate Philosophy and Business VisionCorporate
Philosophy

4 Message from the CEO
8 Message from the CFO
10	Medium-term Management Plan Update
Chiyoda’s Revitalization Plan - Initiatives for Revitalizationand the Future

CHIYODA GROUP’S VALUE CREATION
16 Our Origins
18 The Meaning of Our Existence

Enhance our business in aiming for harmony
between energy and the environment andcontribute to the sustainable development ofsociety as an integrated engineering company
through the use of our collective wisdom andpainstakingly developed technology

20 Our Strengths

Every Chiyoda Group employee engages in corporate activities with this

22 History of Transformation and Growthphilosophy as we strive for corporate group management that earns the

24 History of Environmental Technology and Outlook

trust and empathy of all of our stakeholders, including shareholders,

28 The Chiyoda Group’s Value Creation Process

customers, business partners, employees, and local communities.

SUSTAINABILITY STORY
32

ROUNDTABLEDISCUSSION hiyoda Group’s Vision for Sustainability:
C
Realizing a Carbon-Free and Recycling Society

38

SPECIALFEATURE iming for a Carbon-Free Society
A
SPERA HydrogenTM (LOHC-MCH) - Progressing
from the Demonstration Stage to Importing
Hydrogen on a Commercial Scale

42

SPECIALFEATUREThe
Challenge for Cleaner LNG Plants for a
Stable LNG Supply~The North Field East LNG Project in Qatar~

44

SPECIALFEATUREA Challenge!
A Stable Supply of Copper to Supporta Carbon-free Society

46

ROUNDTABLEDISCUSSION

50

SPECIALFEATUREA Grand Opportunity for the Future
Business
VisionThe Chiyoda Group is committed to being an ‘Innovative’ Engineering
Company, shaping the future of energy and the global environment with
passion and cutting-edge technology.

Human Resources Create Value ccelerating Companywide Digital
A
Transformation (DX)

BUSINESS STRATEGY
54 Business Domains / Business Models
55 Low Carbon and Carbon Recycling
56 Hydrogen Business (SPERA Hydrogen™ and Ammonia)
57 Energy Management Business
58 Life Science Business
59 Digital Transformation (DX Business)

 OUNDATION UNDERPINNING SUSTAINABLEF
GROWTH62 Corporate Governance
68 Compliance
69 Risk Management
70 Safety Management

Editorial Policy
CHIYODA REPORT 2022 is a communication
tool to inform all stakeholders, including
shareholders, investors, business partners,
customers, directors, employees, and society,of the Chiyoda Group’s management policies,
business strategies, financial status, corporate
values, growth potential, and activities towardrealizing a sustainable global society.
We continuously strive to improve thequality of information contained in the reportto strengthen stakeholder awareness of the
Chiyoda Group.

Disclaimer
CHIYODA REPORT 2022 is forward-looking,compiled from information available at the timeof release, and actual results may differ materially from statements made within it.

DATA SECTION
74 Key ESG Data
76 Eleven-Year Summary
78 Corporate Information

2

Chiyoda Corporation CHIYODA REPORT 2022

		

Refer to the following website for further information on the Chiyoda Group.

https://www.chiyodacorp.com/en/

3

INTRODUCTIONINTRODUCTION

Message from the CEO

Financial Independence– A Top Management Mission
The purpose of my appointment as both Chairman of the Board and President & CEO of Chiyoda wasto accelerate decision-making, enhance business execution, and ensure fairness and transparency
through a disciplined approach to corporate governance, while remaining cognizant of outside director
and internal officer opinions.
While striving to achieve our ‘Vision for 2030’ through the implementation of our Medium-termManagement Plan, Chiyoda will continue growing to become financially independent with robust commercial foundations, facilitating a Prime Market listing on the Tokyo Stock Exchange and stable shareholder dividends.

Chiyoda applies its
engineering expertise tosustain corporate growth,meet society’s needs, andcreate social value whileaiming for a carbon-freesociety.
Masakazu Sakakida
Chairman of the Board, President & CEO
CSO*1 & CWO*2*1 Chief Sustainability Officer*2 Chief Wellness Officer

4

Chiyoda Corporation CHIYODA REPORT 2022

Our ‘Vision for 2030’
Chiyoda’s ‘Vision for 2030’ aims to transform our business portfolio and earnings structure,
whereby new and existing businesses will contribute 50% each to earnings, instead of the current 90%
contribution in the oil and gas field.
Chiyoda will continue to profit from our existing core liquefied natural gas (LNG) business, in line with
LNG’s rising demand and increasing significance as a transitional energy source as the global drive
towards a carbon-free society gains momentum, while creating and developing new businesses togenerate further revenue streams according to our ‘Vision for 2030’.

Transformation of our Business Portfolio
as the Basis for Sustainability
Chiyoda is committed to carbon neutrality and our business portfolio will develop as ourclient’s needs change, in line with society’s increasing demand for decarbonization throughreduced CO2 emissions, and our hydrogen business will continue to evolve into a pivotal new business enterprise.
Chiyoda’s direct CO2 emissions from our internal processes and use of fuel (Scope 1) and ourindirect emissions from using electricity, heat, steam, and energy supplied by external companies(Scope 2) are minor compared to emissions from third-party companies related to our value chain
business activities, such as raw material production and logistics (Scope 3). Our contribution to sustainability is therefore reflected by the degree to which our engineering expertise and technologicalprowess supports customers to reduce their Scope 1 and Scope 2 emissions.
Recognizing the significance of climate change and as part of our contribution to global sustainability, the Sustainability Committee, which I chair in my role of Chief Sustainability Officer (CSO), isfacilitating our business portfolio transformation by assessing internal business strategies and evaluating the risks and opportunities associated with supporting customers to reduce their carbon
emissions.

5

INTRODUCTIONINTRODUCTION

Message from the CEO

Expanding and Advancing Human Resources
as a Key to GrowthAs our most valuable asset, expanding and advancing human resources is a driving force for
Chiyoda’s growth. Our human resource system includes the appointment of a Chief Human Resource
Officer (CHRO), responsible for four Human Resource Officers (HRO) appointed from each of the four
disciplines who conduct career-focused interviews with individual employees to clarify their goals anddesired career paths and align them with the Company’s overall business objectives. All Chiyoda’s
human resources, whether located in Head Office or in domestic or international subsidiaries, areessential for our projects. We expand our capacity and strengthen our project execution capabilities
by developing younger generation employees, diversifying their knowledge andexperience through job rotation every 3–4 years, apportioning responsibilities
commensurate with capabilities and proactive assignment to overseas positions.
Chiyoda establishes unique training programs, consistent with employee career‘needs and wants’, to develop the required skills and expertise and optimize humanresource allocation for the steady execution of existing businesses and the development of new businesses to effectively transform its business portfolio.
Chiyoda will continue to execute projects efficiently by hiring external local andtalented human resources and collaborating with our partners to realize earnings
growth and the 50% balance between existing and new businesses.

Promotion of Digital Transformation(DX) to Improve Profitability andCompetitivenessChiyoda has created the position of Chief Digital Officer (CDO) to accelerate
Companywide DX and foster a digital innovation culture.
Chiyoda’s AWP*1 uses digital technology to improve our competitivenessthrough increased project management efficiency and enhanced Engineering,
Procurement and Construction (EPC) execution management capabilities, by aligning the engineeringand procurement EPC processes with construction and commissioning schedules.
Chiyoda has also developed EFEXISTM*2, providing customers with optimal solutions for operating
and maintaining their plants with digital and AI technologies. In optimizing operations and maintenance,
the production capacity of plants is expanded, improving profitability and reducing CO2 emissions.

Stabilizing Earnings
As projects become larger, more complex and of longer duration, the effective management of risk
throughout a projects entire life cycle becomes more essential for stability, growth, and profitability.
Chiyoda implements stringent and comprehensive risk management processes, managed by aStrategy & Risk Integration Division, securing profits on project orders received following therelease of our Medium-term Management Plan.
As an important new business to stabilize earnings and distribute risk, life sciences is essential fornational security, realizes early profits, and involves relatively minor, short-term (1–2 years) project risk.
Commonly used lump-sum ‘fixed price’ contracts, coupled with the increase in larger, longer, andmore complex projects, carry significant cost and schedule risks for all EPC contractors, including
Chiyoda. Such forms of contract generally result in more expensive projects as contractors allocate larger financial contingencies for their increased risk and is a topic
requiring further collaborative industry-wide debate. Large lump sum contracts inparticular need to be carefully analyzed and scrutinized. Chiyoda values a collaborative ‘relationship’ based project execution philosophy, with open and honest communication with customers, subcontractors, and suppliers and will continue tocooperate with clients to explore cost reducing, risk-sharing arrangements.

Continuing to Meet Society’s Needs
with Our Engineering Strengths
Since first announcing our Medium-term Management Plan in May 2019, Chiyoda
has progressed our Company’s revitalization, increasing our competitivenessthrough an enhanced risk management structure, more robust financial foundations,steady transformation of our business portfolio, and empowering employees with asense of responsibility and accountability.
The accelerating transition to a carbon-free society is a business opportunity for
Chiyoda, enabling us to advance as an innovative engineering Company, shaping
the future of energy while aiming for harmony between energy and the environment and contributing to society’s sustainable development. We will continue to grow byapplying our engineering expertise to provide cutting-edge solutions to our customers, meeting theirneeds, and creating value for society in our rapidly changing business environment as we progress
towards realizing our ‘Vision for 2030’.
Thank you for your understanding and continued support.

*1	Advanced Work Packaging is a process whereby construction work is packaged through integrated management to optimize EPC throughout fromengineering and procurement to construction, commissioning, and handover using digital technology*2 Chiyoda delivers digital AI products optimizing customer plant operations and maintenance under the EFEXISTM brand6

Chiyoda Corporation CHIYODA REPORT 2022



Masakazu Sakakida

Chairman of the Board, President & CEOCSO & CWO

7

INTRODUCTIONINTRODUCTION

Message from the CFO

Moving steadily ahead with business restructuringwhile accelerating financial measures to support
sustained growth

Review of the Fiscal Year Ended March 31, 2022
Chiyoda achieved the majority of its full-year earnings
forecasts, such as revenue and operating income, in thefiscal year ended March 31, 2022, the first year following
the update of the Medium-term Management Plan
‘Chiyoda’s Revitalization Plan–Initiatives for Revitalizationand the Future’, thanks to strengthened project execution
capabilities and risk management.
The Company booked one-time extraordinary losses toeradicate the negative legacy of a past project that had lingered for many years, thereby stabilizing management andsolidifying its footing for future sustainable growth.

Reinforcing our Financial Foundation
Strengthening our financial foundation to allow agile reaction to changes in our business environment and more precise execution of business strategies is a priority.
With an order backlog of ¥1.3 trillion, Chiyoda aims toincrease capital and reinforce its financial position further bygenerating earnings by steadily progressing ongoing projects and expanding its diverse and reliable earnings basewhile accelerating business portfolio reform in accordancewith the plan.
Chiyoda will strengthen its capital position and financial
structure by appropriately controlling consolidated fixed
costs and managing cash flow.

Increasing Business Earning Power andImproving Asset Efficiency
In the fiscal year ended March 31, 2022, the Company
adopted a more sophisticated accounting management
system and introduced new business management indicators to improve the earnings structure analysis in eachbusiness segment and strengthen project budget and performance management, while simultaneously advancing
measures to improve employee financial literacy. Leveraging
these financial measures, Chiyoda is reforming Companywide
awareness of costs and earnings to increase businessearning power and improve asset efficiency.
Chiyoda established the HR & DX Division in April 2022,
stepping up efforts to foster a Companywide digital mindset
and improve business efficiency by renewing processes.

8

Chiyoda Corporation CHIYODA REPORT 2022

Optimal Allocation of Resources to Achieve theMedium-term Management Plan
Under our Medium-term Management Plan, we will further
entrench existing businesses by renewing EPC businessprocesses and strengthening our project execution capabilities. We aim to reform our business portfolio by accelerating new businesses in the carbon neutral and life sciencefields that are key to our future growth. Our hydrogen business is of special focus in the carbon neutral field, where
Chiyoda is a market leader, and we will continue contributing to a future sustainable environment and society while
improving corporate value.
Chiyoda is also proactively instigating digital transformation to increase its competitiveness and achieve sustainablegrowth.
By optimizing the allocation of internal resources, we
continue to be resolutely committed to the growth potential
and profitability of each business to achieve our objectives
and support collaboration with partners on a mutually
beneficial basis. Chiyoda is accelerating measures tostrengthen its financial position and steadily progressing
business structure reform through resource reallocation.

Shareholder Returns
Chiyoda emphasizes transparent communication withstakeholders, including shareholders and promotes continuous improvement in IR and PR activities. As a part of its
responsibilities as a listed company, Chiyoda intends toreturn profits to shareholders at an early stage, and aims torelist on the Prime Market.
In accordance with the Medium-term Management
Plan, Chiyoda will continue to focus on generating steadyprofits while reforming our business and earnings structures
to meet all stakeholder expectations.
We appreciate your continued understanding and support.



Koji Tarutani

Representative Director,



Executive Vice President,

CFO & CCO*

* Chief Compliance Officer

9INTRODUCTIONINTRODUCTION

Medium-term Management Plan Update
Chiyoda’s Revitalization Plan—Initiatives for Revitalization and the Future
The Chiyoda Group released its Medium-term Management Plan, ‘Chiyoda’s Revitalization Plan–Initiatives for
Revitalization and the Future’ in May 2019, and revised it in May 2021 to reflect changes in the business environment, the increasing drive towards a carbon-free society and the significance of emerging markets withpotential for future growth.
The Group is reinforcing its business foundations for revitalization and growth to achieve its ‘Vision for 2030’
objectives, published as part of the revised plan. We are fortifying stable earnings by reforming our businessportfolio, and creating new engineering value through DX and other initiatives in the four business domains ofcarbon recycling, hydrogen, energy management, and life science, to realize sustainable growth and further
improve corporate value.

Recognition of the Business Environment	Continuing spread of renewable and low-carbon energy, including LNG, as transition energy sources
Accelerating transition to a carbon-free/hydrogen society, while providing a reliable energy supply	Advances in life science technologies in response to growing health awareness	Digital and AI technological innovation

Overview of Medium-term Management Plan Update
Reinforcing the Business Foundations for Revitalization and Growth

Vision for 2030 
With our advanced technological advantage, we will accelerate
the transition to a carbon-free society, including hydrogen energy,
and contribute to the achievement of carbon neutrality by 2050.

We will transform our business portfolio and earnings structure
by reinvigorating existing businesses while accelerating
new business initiatives.

Business Portfolio Transformation

1 Implementation of a Sophisticated Risk Management Structure	An increasingly sophisticated risk management structure, implemented and operated by a Strategy & Risk Integration
Division and covering all project stages, securing earnings on project orders received following release and review ofthe Medium-term Management Plan	A robust order backlog of ¥1.3 trillion, including the North Field East LNG project in Qatar and a copper
smelting facility in Indonesia

Balanced ratio of profit contributions from existing and new businesses	Resolution of the dispute on the completed Ichthys LNG Project
New business

Quantitative Target

10%

New businesses

FY2020Hydrogen and carbon
cycling, renewable energy,
energy management,
life science
Existing businessesNewbusiness50%

FY203050%

Existing business

LNG and gas,petroleum and petrochemical, metals, industrial facilities

FY2030Consolidated
net profit of

Existing
business

90%

2 Advancing EPC Execution and Management Capabilities	Improving project management coordination and integration of EPC processes, using digital technology,
through Chiyoda AWP and aligning engineering and procurement with construction and commissioning
schedules throughout the entire project life cycle

30 billion¥

	Minimizing the impacts of increasing materials, equipment, and logistics costs on projects, due to supply chain
disruptions by the geopolitical crisis in the Ukraine	Implementing data management and real-time monitoring of profit and loss forecasts

or higher	Strengthening project monitoring to improve earnings and promptly prevent earnings deterioration
3 Expanding and Enhancing Human Resources

Growth Strategy:
A Grand Opportunity for the Future

See Business Strategy on

Chiyoda is reforming its business portfolio to create new value in engineering through initiatives andDX in four business domains.
Stable supply ofclean energy

Realization ofa hydrogen-basedsociety

Optimizing energy
utilization
Promoting renewable energy
and power storage

High value life sciencesolution provider

Low Carbon
and Carbon
Recycling

Hydrogen
Business(SPERA
HydrogenTM andAmmonia)

EnergyManagement
Business

Life Science
BusinessDX
DX Business Promotion & Innovation

10

Chiyoda Corporation CHIYODA REPORT 2022

page 54	Accumulation of human resource information and the introduction of a new Companywide human resource system in
April 2021, which includes career categorization, improved personnel evaluation, and systematictraining under a HRO system, to enhance employee career development
4 Accelerating Companywide DX	Accelerating DX and fostering DX awareness Companywide through a newly created CDO Office	Using DX to accelerate the development of new businesses and solutions while transforming operations

		

Refer to the following website for further details of Chiyoda’s Medium-term Management Plan and its 2021 revision:

https://www.chiyodacorp.com/en/ir/managementstrategy/plan/11

INTRODUCTIONINTRODUCTION

Medium-term Management Plan Update
Chiyoda’s Revitalization Plan—Initiatives for Revitalization and the Future

Quantitative Results

Promoting Sustainability

Chiyoda is strengthening its financial position by steadily executing projects in its ¥1.3 trillion order backlog and securing profits through the stringent implementation of its comprehensive risk management processes.
New Contracts / Backlog of Contracts

Billions of yen

1,500

900

1,126.1
1,016.4
653.5

771.6

811.8

0

New contracts

342.0

315.4

311.1

Achieve the business portfolio transfomation and quantitative target indicatedin Medium-term Management Plan Update200

2019/32020/32021/302022/3

2018/3

2019/32020/32021/32022/3

Backlog of contracts

Carbon-free Business Promotion
Committee

Billions of yen

50

26.8

0

200

10.5

7.0

150

–12.3

159.4

%

37.5

40

100

–100

–59.2

24.9

36.7

4.0

10

15.7

–50

–199.8
2019/32020/32021/3–1002022/3

Analysis of risks and opportunities
in the Company’s businesses

0

–10

–17.1
2019/3

2018/3

Net assets

2020/32021/32022/3–20

Analysis of risks and opportunities related to climate change at the Company’s core customers,
and survey of customers’ business strategies

Equity ratio (right)

2 Carbon Neutral Declaration

Businesses and Human Resource Committees
Chiyoda has created five Businesses Human Resources Committees, under an Executive Advisory Committee, to accelerate
the realization of the Medium-term Management Plan and our ‘Vision for 2030’. The committee will advance business verticallywithin business divisions and horizontally across the Company’s organizations, enabling the Group to advance as ‘One Team’through PDCA cycle’s required to optimize business performance.

	In support of a future carbon neutral society, on 1 April 2022 Chiyoda declared its commitment to becoming net carbon
neutral by 2050. Based on its corporate philosophy of ‘Energy and Environment in Harmony’, the Chiyoda Group willcontinue to contribute to the realization of a carbon-free, recycling-oriented society through ‘reducing’ and ‘recycling’,
leveraging its advanced technological capabilities and the ability to implement new technologies.

~Energy and Environment in Harmony~
Carbon neutrality by 2050, with engineering capabilities andinnovative digital technology

President / Executive Advisory Committee
ReportReportReport, share,and discuss

Integrated Strategy
Committee• Formulate businessplans and key personnel plans for eachdivision• Create humanresource and financial resource allocation plans to optimize
Companywide
resources

Collaboration

Foundation for business strategies

20

11.0

6.3

0

–150

Sustainability Committee

Collaboration

30

50

2018/3Integrated Strategy Committee

Collaboration

Net Assets / Equity Ratio

Billions of yen

–200

385.9

179.8

Operating Income–50	Sustainability is a core management value and Chiyoda is accelerating initiatives, based on our business strategies,
to address sustainability issues (i.e., environment, resources, society, and the economy) from a medium to long-term
perspective.

510.9

400

415.9

301.2
2018/3600

1,331.0

898.8

600
300

	Chiyoda has created a Sustainability Committee, chaired by the President acting as a CSO, to increase corporate value
and sustain corporate growth.

Revenue

Billions of yen

1,200

1 Creation of Sustainability Committee

Consolidated
Management
Promotion Committee

Human Resources
Management
Committee

Expand consolidated
management of theGroup to improve
the risk management
structure and corporate
value

Promote humanresources development
and implement appropriate and flexible
human resources
allocation

Carbon-free Business
Promotion Committee

Plan strategies andtake action for carbonfree business development, enlargement,
and monetization

Project
CompetitivenessCommittee
Innovate EPC businessprocesses and reinforce competitivenessthrough digitalapplication

Scopes 1 and 2

FY2030 Medium-term
Target

50% reduction in GHG* emissions(FY2020 baseline)

FY2050 Long-term
TargetNet zero GHG emissions

Scope 3Contribute to carbon recycling and the realizationof a decarbonized society through ‘recirculation’and ‘reduction’• Our FY2030 medium-term target for Scope 1 and 2 will be achieved through internal endeavors in our offices in Japan andby collaborating with clients, partners, and suppliers on our domestic and international construction sites.
• We will cooperate with all stakeholders to reduce GHG emissions in Scope 3, contributing to carbon-recycling and therealization of a decarbonized society by optimizing the social implementation of innovative technology.
• GHG emission reduction plans will be regularly reviewed according to technological developments, economic conditions,and policy/institutional support.
* Greenhouse Gas

12

Chiyoda Corporation CHIYODA REPORT 2022

13

CHIYODA GROUP’S VALUE CREATIONCHIYODA GROUP’SVALUE CREATIONCONTENTS
16 Our Origins
18 The Meaning of Our Existence
20 Our Strengths
22 History of Transformation and Growth
24 History of Environmental Technology and Outlook

In this section we discusses how Chiyoda’s engineering expertise

28 The Chiyoda Group’s Value Creation Processcontinues to create value based on our ability to develop, and deliver,unique technological solutions meeting society’s changing needs.

14

Chiyoda Corporation CHIYODA REPORT 2022

15

CHIYODA GROUP’S VALUE CREATIONCHIYODA GROUP’S VALUE CREATIONOur Origins

Our Founding Philosophy‘Serving Society throughTechnology’
Chiyoda has applied its founding philosophy of ‘Serving Society through Technology’ since its
founding in 1948, expanding and increasing its engineering capabilities in parallel with society’s
evolving requirements.

“Is this for the good of Japan, for the benefit of the country?”“Be a conscientious and proud employee of Chiyoda.”
Founder Akiyoshi Tamaki

As the founder of Chiyoda, Akiyoshi Tamaki developed the Company as an advanced engineering enterprise by focusing on technologies for the chemicals industry, supporting the growthof a national plant engineering industry by delivering pioneering technological solutions to its
customers.
Since its founding, Chiyoda has emphasized that industrial growth must embrace the needsof the natural environment through its ‘Energy and Environment in Harmony’ philosophy.

Founding Management Principles

Aspirations for Chiyoda’s Founding
Chiyoda was founded as an engineering company committed to resolving social issues withadvanced technology over 70 years ago, following the spinoff of the engineering divisionfrom Fuji Industry Company Ltd, part of Mitsubishi Oil Co. Ltd, after the breakup of thezaibatsu conglomerates after World War II.

Improve Technical Capability

Strengthen Corporate Competitiveness

Secure customer loyalty through superior technical ability

Strengthen corporate competitiveness through top-level employee
training and instill customer satisfaction as a core value,
passionately shared by all employees

Customer Service Mindset
Embed a ‘client first’ mindset in all employees anddevelop a service culture to drive customer satisfaction

Positive Public Spirit

Confidentiality

Inspire and promote a positive public-oriented
corporate philosophy

Prevent damage to the Company’s reputation and foster
stakeholder trust by vehemently protecting against breaches ofconfidential information

FOUNDING OBJECTIVE

Chiyoda’s founding objective was to be
an international, advanced technology company
specializing in industrial equipment.

1948

1963

SPIRITAs a country of relatively small land area and with limited natural resources,
such as natural gas, oil, etc., Japan was dependent on imported raw materials and energy to
power its reconstruction following the end of World War II. Chiyoda’s founding was key
to achieving Japan’s ambitious goal of constructing a high-performance industrial base,increasing productivity and strengthening export-oriented industries, to stimulate
rapid economic growth though major industrial reform.

1968
Founded in Shinbashi, Tokyo
Employees: 28
Revenue: ¥11 million

16

Chiyoda Corporation CHIYODA REPORT 2022

Relocated to
Akasaka, Tokyo
Employees: Over 2,000
Revenue: ¥15 billion

Relocated to
Tsurumi, Kanagawa
Employees: Over 2,300
Revenue: ¥55 billion

17

CHIYODA GROUP’S VALUE CREATIONCHIYODA GROUP’S VALUE CREATION

History of Transformation and Growth
700,000

Continuing our vision of ‘serving society through technology’ and embracing the corporate
philosophy of ‘Energy and Environment in Harmony’, Chiyoda has grown and developedby anticipating the changing requirements of each generation and meeting their needs.
We will continue to harness our engineering expertise to support future generations in thequest for renewable sources of energy for a cleaner global environment and a sustainable
society.

600,000

500,000

400,000

300,000

Revenue(Millions of yen)

200,000

Foundationof Chiyoda
100,000

1947

1949

1951

1953

1955

1957

1959

1961

1963

1965

1967

1969

Founding of Chiyoda

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

First Transformation

1948–1970
Social Trends

1971

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

Second Transformation

1971–1990

2013

2015

2017

2019

	Market changes resulting from the two oil crises

	Increase in global demand for LNG	Period of high economic growth	Accelerating overseas production as a result of the Plaza
Accord (period of strong Japanese yen)	Increase in global needs to address climate change and environmental preservation

(FY)

0

For the Future Growth

1991–2018	Growing demand for oil

2021

2019–
	Accelerating transition towards decarbonization and carbon
neutrality	Innovation of AI and digital technologies
	Reinforcement of life sciences technologies

	Contributing to Japan’s industrial
reconstruction through engineering
Business history	Plant engineering business supported
postwar reconstruction

	Promoting ‘Companywide internationalization’	Executing large-scale LNG projects overseas

	Promotion of cleaner LNG

	Executing large-scale petroleum/petrifaction projects
overseas	Expanded into general industrial facilities and metals field	Take on challenge of hydrogen and new energy	Entered renewable energy field	Promoting digital transformation	Declaration of ‘Energy and Environment in Harmony’	Strengthening life sciences fields

Take on challenge of clean energy LNG
Environment
Technology	Commenced full-scale environmental conservation

	Developed SPERA Hydrogen™

	Developed CT-121® flue gas desulphurization technology	Commenced CCS* initiatives

	Developing technology for storing and transporting large volumes of hydrogen over long distances at ambient temperature and pressure* Carbon dioxide capture and storage

Projects

22

1960

1969

1977

1984

2004

2014

2020

2021

Mitsubishi Oil Co., Ltd.
Secured order for Mizushima
grassroots refinery

Fuji Oil Company, Ltd.’s
Sodegaura Refinery
Secured order for expansion of
No. 2 plant

Secured order for the Kaduna
Refinery for NNPC (Nigeria)

Constructed the Petromin-Mobil
Yanbu Refinery (Saudi Arabia)

Secured orders for LNG plants
for Qatargas Operating
Company Limited (Plants 3 & 4)

SOL de Omura Mishima
Secured an order for solar
power generation facility

Completed demonstration of
the world’s first internationalhydrogen supply chain(Brunei-Kawasaki, Japan)

Executing the large-scale
North Field East LNG projectin Qatar

Chiyoda Corporation CHIYODA REPORT 2022

Photo courtesy of Advanced Hydrogen
Energy Chain Association for technology
Development (AHEAD)

23

CHIYODA GROUP’S VALUE CREATIONCHIYODA GROUP’S VALUE CREATION

History of Environmental Technology and Outlook
The Chiyoda Group has developed technology with the intention of achieving ‘Energy and Environment inHarmony’ in the petroleum, petrochemical, and gas fields. Innovative technology, in response to the increasing
drive towards a carbon neutral society, includes CO2 separation and capture, carbon recycling, ammonia
production, and hydrogen value chain. Development of SPERA* Hydrogen™ (LOHC-MCH), Chiyoda’s proprietary technology for the safe storage and transportation of hydrogen, was successfully achieved in 2014, having
commenced in 2002, and is now under further development for commercialization.
* A Latin word for “hope”

Developed novel catalysts fordehydrogenation in 2011

SPERA Hydrogen™
(LOHC-MCH)
History ofEnvironmental
Technology
Development

1948
Founding

Wet limestone-gypsum fluegas desulfurization system

CO2 reforming catalyst(1)
Commercializationof SPERA
Hydrogen™
(LOHC-MCH)

CT-CO2AR®

CT-121®

Main environment-related technology development

2002
Commenced
development ofdehydrogenation
catalysts

Catalytic oxidation method
flue gas desulfurization
catalyst

CASOX

(2)
Development of
new ammonia
production
technology(3)
Development of
new technology forseparating andcapturing CO2

For kerosene
Hydrodesulfurization catalyst

CT-HBT®

(4)
Development of
new technology forcarbon recycling

24

Chiyoda Corporation CHIYODA REPORT 2022

25

CHIYODA GROUP’S VALUE CREATIONCHIYODA GROUP’S VALUE CREATION

History of Environmental Technology and Outlook

Environmental Technology Development Philosophy to Become Carbon Neutral
Alternative energy(4) Carbon recycling(3) CO2 separation andcaptureCO2 capture and use

without CO2(3)
CO2 separationand capture(1) SPERA Hydrogen™ (LOHC-MCH)(2) Ammonia production

Chiyoda is developing and verifying domestic production technologies centeredon solid absorbents able to reduce the cost of low-density CO2 separation andcapture from gas turbine exhaust gases with the objective of becoming carbon
neutral while using natural gas. (NEDO Green Innovation Fund Project)

CarbonateSolidabsorbents

Paraxylene

Development ofabsorbents

Development ofprocesses

Verification of
actual gas

Ethylene
Exhaustgas(1) SPERA Hydrogen™
(LOHC-MCH)

The Chiyoda Group developed the SPERA Hydrogen (LOHC-MCH) system tosupport the large-scale storage and transport of hydrogen.

FEATURES

VALUE

 iquid under ambient conditions
LSafe and chemically stable
Can be use with existing standards and equipment
Can technologically be used at commercial scale

Chemicals,
fuels, etc.

CO2 separation andcapture process

Natural gas turbine(4) Carbon recycling

 conomical and safe hydrogen chainERealistic solution for hydrogen introduction
Capability of energy buffer
Can be quickly commercialized

CO2(Carbonate, paraxylene, ethylene)

CO2 use process

Chiyoda is developing technologies for carbon recycling, leveraging Grouptechnologies and experience, as well as its familiarity with CCUS*.
* Abbreviation for Carbon dioxide Capture, Utilization and Storage. Capture, effective use, and storage of carbon dioxide

Chiyoda Group’s technology and experience, as well as familiarity with CCUS

SPERA Hydrogen System
Hydrogenation of toluene*2(production of MCH)

(separation of hydrogen and toluene)

Chiyoda’s
proprietary
technologies

Transport

Hydrogen
Storage

Toluene

New technologies(solid absorption method) forCO2 separation and capture

Dehydrogenation of MCH

SPERA Hydrogen(LOHC-MCH*1)

StorageUse of hydrogen x
synthetic gas
technologies

Paraxylene(raw material for polyester)

Use

HydrogenToluene*1 Methylcyclohexane (MCH) is produced from toluene with hydrogen that is in a liquid state and can be handled under ambient conditions. It is widely used in many fields as products,
including as a pharmaceutical agent and a solvent for correction fluids, for example.

Sources of
CO2 emissions

Use of flue gas
desulfurization
technology*2 A chemical also used in paint effluents. After dehydrogenation, toluene can be returned to the supply site and chemically combined with hydrogen to produce MCH again for the transportof hydrogen.

Carbonate(raw material for concrete)

Chiyoda is developing and verifying domestic production technologies(low-temperature, low-pressure processes) that reduce production costs withthe objective of building a supply chain for expanding the use of ammonia as afuel. (NEDO* Green Innovation Fund Project)(2) Ammonia production* New Energy and Industrial Technology
Development Organization

Process development and technology verification

Waste
concrete

Fixation of
CO2 in calciumof wasteconcrete

Collaborating with
U.S.-based Blue Planet
Systems and
Mitsubishi Corporation

H2
Renewableenergy hydrogen
NEDO projects

Ethylene
Recycledaggregate

Calciumcarbonate(basic chemical)

Industry-academia-government collaboration,
NEDO Moonshot R&D Project
Renewable energy

Water

CO2

Industry-academia collaborative development team (three partners)

Catalyst A
development
team

26

Nagoya University
Kyushu University
National Institute of Technology,
Numazu College
ChiyodaChiyoda Corporation CHIYODA REPORT 2022

Catalyst B
development
team

Tokyo Institute ofTechnology
Tsubame BHB Co., Ltd.

Production ofparaxylene derived
from CO2

CO2

Catalyst C
development
team(In exhaustgas oratmosphere)

Electrolytic
reductionsystem(room temperature,normal pressure)

Ethylene

Diversechemicalproducts using
existing
processes

Kyoto University
Tokyo Electric Power Company
Holdings, Inc.

27

CHIYODA GROUP’S VALUE CREATIONCHIYODA GROUP’S VALUE CREATIONThe Chiyoda Group’s Value Creation Process
The Chiyoda Group has clearly identified the social issues it must address and has made them a priority management issue as a comprehensive engineering company with a prominent presence in the energy industry.
Leveraging its strengths accumulated through business cycles since the Company’s founding, Chiyoda realizes sustained growth while creating new value that helps solve social issues.

Our Priority
Management Issues(Chiyoda’s
SDGs Materiality)

Cycle of value creation
leveraging our accumulated
strengths

Value Created

Our Vision for 2030
Future of engineering
Create new value in engineering

Understandissues faced byenergy industry

Innovate theTechand nolotec abili ghn tolRefineproprietary
technologies
and search forapplication
potential

strengthsdtr
er usts

Rebuild internaland external
resources

CLIMATE ACTION

Accumulated

Ab
ilit
y
so

10%

Reinforcebusiness modelthrough DX
and external
resourcesNew
business

50%

Chiyoda Corporation CHIYODA REPORT 2022

Stable supply ofclean energy

30¥billionor higher

Existing business

FY2020

90%

a
an it
m
t
il
Projec pab
ca

New businesses
Hydrogen and carbon cycling,
renewable energy,
energy management, life science28

FY2030Consolidated
net profit of

by deepening existing
businesses andcreating andstrengthening new
businesses

New business

g
ie em
en
s
t

il
bu m
to
o
Ability custwith

INDUSTRY,INNOVATION AND
INFRASTRUCTURE

Implement inenergy industry

business
portfolio

se
opo
pr
to ionstlu

AFFORDABLE AND
CLEAN ENERGY

bilities
apa ementclpl
ica o im ocietyy t y in sogSocial value

FY2030Existing
business

50%

Early realization ofhydrogen-basedsociety andcarbon neutrality

Contribute tohealthy activitiesof people

Existing businesses
LNG and gas,petroleum and petrochemical, metals,
industrial facilities

29

SUSTAINABILITY STORYSUSTAINABILITY
STORY
In this section, we introduce our initiatives to realize the sustainable

CONTENTS
32

ROUNDTABLEDISCUSSION hiyoda Group’s Vision for Sustainability:
C
Realizing a Carbon-Free and Recycling Society

38

SPECIALFEATURE iming for a Carbon-Free Society
A
SPERA HydrogenTM (LOHC-MCH) - Progressing
from the Demonstration Stage to Importing
Hydrogen on a Commercial Scale

42

SPECIALFEATURE he Challenge for Cleaner LNG Plants forTa Stable LNG Supply~The North Field East LNG Project in Qatar~

44

SPECIALFEATURE Challenge!
A
A Stable Supply of Copper to Supporta Carbon-free Society

46

ROUNDTABLEDISCUSSION

50

SPECIALFEATURE

growth of the Chiyoda Group and a sustainable society.

30

Chiyoda Corporation CHIYODA REPORT 2022

Human Resources Create ValueAccelerating Companywide
Digital Transformation (DX)31

SUSTAINABILITY STORYSUSTAINABILITY STORYROUNDTABLE DISCUSSION“It is necessary to decarbonize while
ensuring a reliable energy supply.”

Chiyoda Group’s Vision for Sustainability:
Realizing a Carbon-free andRecycling Society
The Chiyoda Group has contributed to a sustainable society under a corporate philosophyof ‘Energy and Environment in Harmony’ since its founding as an integrated engineering
company in 1948. In response to the increasing global drive to combat climate change,
the Group’s mission is to combine its engineering and technology development expertiseto realize a carbon-free, recycling society. In this roundtable discussion, junior and midcareer employees debate how we could further support the realization of such a society
and the future of our Company, with Mr. Sato, an advisor on the Company’s Sustainability
Committee.

Introduction

Ryu Tange
Hiroyuki Sekiguchi

Business Innovation
Department, Frontier
Business Division

32

Yohei Tanaka

Project GX Strategy &Development Department,
Energy Project Operations Division

Eiji Kawai

NFE Team, Energy Project
Operations Division

Offshore Wind Firm Project
Section, Global Environment &Green Energy Project
Operations Division

Kazuya Furuichi

Tsutomu Sato

Eriko Goto

Digital Products Department,
Frontier Business Division

Sustainability Advisor
Advisor for Global Environment,
Japan Bank for International Cooperation(JBIC) / Visiting fellow at Graduate School ofEnvironmental Studies, Nagoya University

Procurement Department,
Project Procurement &Logistics Division

Chiyoda Corporation CHIYODA REPORT 2022

Tsutomu Sato

Sato
Climate change is having an undeniably adverse
impact on the human race and natural disasters such asheat waves, floods, typhoons, wildfires, and drought arebecoming more frequent.
In response, the international community has establishedgoals to achieve net zero emissions of greenhouse gases
this century, such as the Paris Agreement signed in 2015
which advocates maintaining the average rise in global temperatures since the industrial revolution to less than 2°C,
and ideally below 1.5°C. The Japanese government has
declared its objective of becoming carbon neutral by 2050
as countries around the world increase their efforts todecarbonize. More than 8,000 private-sector companies,
institutional investors, and higher education institutions are
now engaged in private-sector initiatives under the United
Nation’s ‘Race to Zero’ campaign, and an increasing
number of financial institutions are calling for net zero initiatives at companies in which they invest as the decarbonization momentum increases.
Global temperature increase is an urgent issue anddecarbonization must advance accordingly, while maintaining a reliable supply of energy to support social and economic activities. This will be challenging and we should
discuss how Chiyoda can support this objective and its
decarbonization and recycling vision for the future, while
ensuring a reliable energy supply.

Decarbonization while Ensuring a Reliable Energy
Supply with LNG
TanakaIt is important to optimize decarbonization andenergy supply solutions from short, medium, and long-term
perspectives. While decarbonizing energy is the ultimate
goal, renewable energy alone is unlikely to meet demand.
Renewable energy including hydrogen, ammonia, and otherforms of clean energy will take time and involve substantial
sums of money to develop and implement technologies insociety and upgrade infrastructure. In the short and medium
term, a realistic approach will be to ensure a reliable supply
using traditional energy sources and, from a long-term
standpoint, reduce, capture, and store CO2 emitted fromthem while transitioning to renewable and clean energy.
As a Chiyoda core business, LNG is an essential sourceof energy as we progress towards decarbonization because
it is reliable and has relatively low environmental impact. I am
currently involved with the Qatar LNG project that reduces
CO2 emissions through carbon capture, utilization, andstorage technology and will support a stable energy supply
when complete.
The movement towards decarbonization is also pivotal
to our Company’s sustainability and I will create conditions
whereby all Chiyoda colleagues can explore new technologies, as we tackle global challenges and successfully complete projects that generate profit.

“LNG is an extremely importanttransitional energy source on the path
to decarbonization.”
Yohei Tanaka

33

SUSTAINABILITY STORY

Supporting the Transition to Renewable Energy with
Offshore Wind Power
Tange
There were relatively few renewable energy projects when I joined Chiyoda in 2009 but, in line with the shift
towards decarbonization over the past 10 years, we haveaggressively developed new business in the renewableenergy, power generation, and storage fields, including
solar power generation, solar thermal generation, biomass
power generation, storage systems, and offshore wind
power generation.
Offshore wind power generation is expected to playa major role in the transition to renewable energy as acore power source, and national and international companies are planning to develop this market around Japan.
However, projects can take a decade from commercial
evaluation to completion and operation and a long-termview is required to increase the weighting of renewableenergy in the energy mix.
Although offshore wind power generation is still a relatively small market in Japan, Chiyoda receives orders frompower generation companies to conduct feasibility studies,basic engineering work and compile budget estimates.
Offshore wind power requires both civil engineering andelectricity generating proficiency and, although these may
not be Chiyoda’s main areas of expertise, I believe we cantransfer strengths from our core disciplines into these fields.
As we incorporate advanced technologies from Europe,
it will be essential to adapt these technologies to the environmental conditions and regulations unique to Japan andChiyoda is in a good position to partner with European firms“I wish to create new businesses while
redefining the value of the Company’s
diverse decarbonization technologies.”“Chiyoda can contribute to society
by leveraging its abundant
technological expertise.”

Ryu Tange

Eiji Kawaiand other foreign companies to bring European technologies
here. These projects are huge and require advanced engineering and construction technologies. Chiyoda’s project
management capabilities, accumulated over many years in
the petroleum, petrochemical, and gas fields, will be invaluable for their successful completion.
In conversations with clients, I can sense their expectations of Chiyoda as an engineering company and I willleverage our strengths as we contribute to offshore wind
power generation in Japan.

natural energy resources, such as solar and wind power,
and varying policies and priorities for decarbonization isnecessary to select the most ideal solution, with an understanding of the unique challenges faced by native companies and people.
Our technological capabilities are also key for delivering
optimal solutions to the client and we are currently evaluating the company’s CCS technologies, of which there aremany. I wish to create new businesses, while contributing
to the decarbonization of society, by delivering optimal solutions to our clients and redefining the value of the Company’s
diverse decarbonization technologies.

Delivering Optimal Decarbonization Solutions to
Clients from a Multifaceted Approach* Carbon Capture and Storage.

Everyone’s experience in the energy field and youraspirations for decarbonization reinforces the increasing
momentum towards energy transition.
Energy producing equipment is durable and can last for
decades. It is therefore essential to rapidly commercialize
technologies for reducing, capturing, and reusing CO2
emissions for installation into existing facilities. I also lookforward to observing steady progress towards renewablesources of energy, such as offshore wind power. As anengineering company, Chiyoda must utilize its technologicalcapabilities even more effectively, and leverage existing
technologies while accepting new challenges.
Sato

Sekiguchi
In the Project GX Strategy & Development
Department, we are developing strategies for new overseas
projects and to establish decarbonization as a new businesspillar. Because the different decarbonization methods havetheir own unique advantages and disadvantages and implementing them raises different challenges, a solid understanding of the features of each method is required toevaluate each one while, considering their applicability to
the industries and companies using them. Understanding
unique national and regional traits when considering overseas projects is fundamental. For example, we envision the
expansion of CCS* and the introduction of hydrogen andammonia in countries that use LNG as a primary fuel,whereas switching to LNG is the next step towards decarbonization in countries that use a large proportion of coal.
Different countries and regions have dissimilar levels of

SUSTAINABILITY STORY“I will leverage our Company’s
strengths to contribute to offshore
wind power generation in Japan.”

optimizing the overall system. However, these issues are
not insurmountable. Chiyoda’s strengths derive from: (1) its
technological capabilities from combining existing and newtechnologies based on comprehensive and fair evaluation,
while compensating for variances in the physical nature ofmaterials, and (2) its project execution capabilities, derived
from business plans, to efficiently manufacture products.
Chiyoda contributes by developing proprietary technologies and through new technologies jointly developed withnational and international partners. This includes the integration of digital technologies into process technologies,
such as next-generation fuel production and chemical
products such as paraxylene and ethylene produced from
CO2 and green hydrogen. This also encompasses virtual
power plants, optimizing electrical power and heat including
solid absorbents that efficiently absorb low-density CO2,and SPERA Hydrogen, Chiyoda’s proprietary hydrogentechnology.
In addition to the optimal deployment of existing andnew technologies, Chiyoda can leverage its experience ofexecuting projects during all stages of their life cycle, fromfeasibility studies to operation and maintenance, to supportclients achieve their decarbonization and carbon recycling
objectives.

Optimizing the Energy Value Chain with
Digital Technologies
Supporting Client Decarbonization Client with
our Technological Capabilities and Ability to
Implement Technologies in Society
Kawai
There are four key technology issues for capturing
and reusing CO2, producing hydrogen and manufacturing
carbon neutral products as we progress towards decarbonization and carbon recycling. First is efficiently capturing
CO2 from low-density gases that contain impurities; second
is stabilizing the fluctuating supply of green hydrogen fordelivery to downstream facilities; third is efficiently separating byproducts containing product material for downstream
delivery; and fourth is efficient low-cost production while

Furuichi
As Mr Kawai discussed, and in my experience ofusing digital technologies to support facility operations, I
think Chiyoda is able to accomplish so much because it can
combine digital technology capabilities with engineering.
There are many stakeholders in the wide variety of clean
energy sources as the world transitions to a decarbonizedsociety and, as the energy value chain becomes more
complex, there will be a larger interconnected impact. The
ripples from an unplanned event affect the entire value
chain, and effective risk management is essential to comprehensively assess and mitigate risks that may influenceschedules and costs. Such a process can only be possible

Hiroyuki Sekiguchi

34

Chiyoda Corporation CHIYODA REPORT 2022

35

SUSTAINABILITY STORY

by applying lessons learned from many years of EPC projectexperience. I hope to facilitate the use of digital technology
on energy projects to enhance the Company’s project engineering and execution management capabilities. We areaiming to optimize our operations while ensuring resilienceby monitoring risks and opportunities throughout the entire
energy value chain and applicable systems. The expectedrole of digital technology includes the collection and visualization of real-time data that facilitates adjustments anddecisions which, when combined with experience, enables
the creation of indicators and future projections to manage
overall operations to the satisfaction of all parties.
Chiyoda will continue supporting client business transformation through client new technologies as their industry
evolves through decarbonization and carbon recycling, andwe will continue developing close and enduring working
relationships with our clients as we resolve issues as ‘One
Team’. I aim to create systems and develop a corporate
culture that continues to train teams and human resources
to identify core issues and their resolution. Working
together as ‘One Team’, we will continue to progress as an

36

Chiyoda Corporation CHIYODA REPORT 2022

“I work with project team members
to increase load ratios.”

Kazuya Furuichi

Eriko Goto

engineering company, focusing on AI and digitaltechnologies.

Using digital technology to ensure that all the parties
involved in the efficient procurement and transportation ofmaterials and equipment receive real-time information,
improves the efficiency and quality of transportation.
Today’s discussion was an opportunity to reflect on sustainability initiatives in transportation. Our attention is naturally drawn to impending and immediate delivery schedules
and costs, but I intend to use the Company’s transportation
expertise and experience to initiate improvements insustainability.

Reducing CO2 Emissions in Procurement by
Improving Transportation Efficiency
Goto
I am responsible for the transportation of procured
goods in the Procurement Department and my approach todecarbonization is slightly different. While ensuring safety
and quality, procured equipment and materials must be
delivered to worksites when required to avoid schedule
impacts, and increasing the transportation efficiency of procured equipment and materials also reduces CO2 emissions.
For example, increasing the load ratio by more efficiently
loading products into containers to maximize a ship’s cargo,
reduces the number of trips from the loading site to theship and minimizes their CO2 emissions. I ensure that all
project personnel consider the size of equipment and materials at the engineering stage, including packaging specifications, to increase transportation efficiency.

SUSTAINABILITY STORY“I aim to apply my experiencein EPC projects in using digitaltechnologies in the field ofenergy supply.”superior management capabilities. While responding tochanges in the business environment, Chiyoda should
maintain these competitive strengths and, by exploitingsynergies, the Company will be able to deliver innovative
solutions to clients and add value to society. Developing
new businesses on the path to decarbonization comes withuncertainties in terms of technologies, markets, and regulatory restrictions. I look forward to working with everyone in
exploring opportunities for the Chiyoda Group to grow andachieve future goals, while contributing to decarbonization
in society.

Sato
I now have a greater understanding of the significant potential of an engineering company like Chiyoda,
given the many new technologies, such as hydrogen,next-generation energy, virtual power plants, and AI.
Decarbonization should be incorporated into the entire
supply chain, and advancing it at the procurement stage
makes a substantial contribution.
Chiyoda has earned the trust of large international clientsthough its technological capabilities, track record over many
years client and successful execution of projects using

37

SUSTAINABILITY STORYSUSTAINABILITY STORYWorld’s first marine transportation of hydrogen carrier (MCH*)
using a chemical tanker (February 2022)

Development of a Supply Chain Business for Commercial Demonstration in Singapore
Raw material
and energy
procurement

Hydrogenproduction
CCUS

Hydrogenation of toluene,
MCH storage and transport

Dehydrogenation

Inlandtransportation

Hydrogen offtake

To market

MCH (SPERA Hydrogen)
Clean energy

SPECIAL FEATURE

Aiming for a Carbon-free Society

Natural gas

SPERA HydrogenTM (LOHC-MCH)—
Progressing from the Demonstration
Stage to Importing Hydrogen on a
Commercial Scale

City gasGreenhydrogenTolueneRenewableenergySPERA Hydrogen (LOHC-MCH)

Chiyoda successfully completed the world’s first global hydrogen supply chain demonstration project in 2020,
verifying the feasibility of using SPERA Hydrogen (LOHC-MCH) technology to store and transport hydrogen on
a commercial scale. Chiyoda is currently assessing the conceptual engineering of further global hydrogen
supply chains with partners around the world to facilitate the worldwide commercial use of hydrogen later thisdecade.

SPERA Hydrogen (LOHC-MCH) Connects a Global Hydrogen Supply Chain: Green hydrogen (hydrogen produced with renewable energy,
without emitting CO2)

Netherlands (imports)
Memorandum of understanding
signed with Port of Rotterdam
Authority and Koole Terminals

BluehydrogenIndustrial use

Levering on its successful track record as a leading integrated engineering company, Chiyoda is collaborating with Mitsubishi
Corporation and local energy and utility companies to establish a commercial hydrogen import chain in Singapore.

Expansion into Europe
In aiming to import 10 million tons of hydrogen by 2030, The
Netherlands intends to become the gateway for importing hydrogen into Europe. Chiyoda’s goal is to use SPERA Hydrogen(LOHC-MCH) technology to construct a hydrogen supply chain
into Europe, transporting hydrogen from around the world to port
areas and inland industrial districts, in collaboration with port
authorities, terminal operators, and related government agencies.

: Blue hydrogen (hydrogen derived from fossil fuels, but with
reduced CO2 emissions due to the capture and storage of
CO2 emitted during the production process)

Japan

H2

German Chancellor Olaf Scholz Visits Chiyoda’s Dehydrogenation Demonstration Plant

H2

In April 2022, German Chancellor Olaf Scholz visited a dehydrogenation plant at TOA OIL’s Keihin Refinery, owned by the Advanced
Hydrogen Energy chain Association for technology Development (AHEAD) and operated by Chiyoda using our proprietary SPERA
Hydrogen (LOHC-MCH) technology. Discussions included our world first international hydrogen supply chain demonstration projectcompleted in 2020, the characteristics of hydrogen storage and transportation technology, and our initiatives for the introduction ofhydrogen in Europe.

Singapore (imports)
Memorandum of understanding
signed with local private-sector
companies

H2

H2

H2

Collaborative partnerships between major international corporations on both the supply and demand side is a pre-requisite forthe construction of global hydrogen supply chains. Chiyoda is cooperating with renewable energy providers, hydrogen production companies, port-related and infrastructure companies, heavy industry players, and relevant government institutions
worldwide.
* Methylcyclohexane (MCH) is produced from toluene with hydrogen that is in a liquid state and can be handled under ambient conditions. It is widely used in many fields as products,
including as a pharmaceutical agent and a solvent for correction fluids, for example.
* Liquid Organic Hydrogen Carrier (LOHC) is a method for storing and transporting hydrogen, using MCH as one of the hydrogen carriers.

38

Chiyoda Corporation CHIYODA REPORT 2022

Chairman & President Sakakida (left) and SeniorVice President Iuchi (right) explain the facility to
Chancellor Scholz (center)© Bundesregierung / Bergmann

Group picture with Chancellor Scholz (fourth from the left)

39

SUSTAINABILITY STORYSUSTAINABILITY STORY

A Future SPERA Hydrogen (LOHC-MCH) Community
Chiyoda supports the realization of a hydrogen society, centered on our unique SPERA Hydrogen (LOHC-MCH) technology torealize global supply chains for the reliable supply of clean energy on a commercial scale.
City

Storage tanks

SPERA
Hydrogen

Commercial
facilities

Hydrogenation plantCommercial
facilities
Hydrogen production plant

Oil refinery and chemical plant
HydrogenHydrogenNatural gas and oil refining plant

Naturalgas and oil

CO2Hydrogen station

Water electrolyzer

Electricity

CO2

Port

Dehydrogenation plant
Thermal power
generation

HydrogenWind power plant

Hydropower plant

HydrogenHydrogen station

CCS

Solar power plant

SPERA
Hydrogen

SUPPLY SIDE

DEMAND SIDE

On the supply side…

On the demand side…

The world aims to become carbon neutral by 2050. It will be vital to build infrastructure and new routes that connect countries
and regions that are changing energy sources and using abundant clean energy sources. Hydrogen is a promising source ofenergy that can be transported and stored.

In the coming hydrogen society, clean energy will be supplied through the SPERA Hydrogen (LOHC-MCH) community to industrial districts and neighborhoods.

Simulation of how to use SPERA Hydrogen (LOHC-MCH) (demand side)
Marine transportation

Power generation

Petroleum and chemicals

Energy storage

	Marine transportation using existing tankers

	Cleaner power generation fuelLarge-scale storage and stabilization of renewable energy	Hydrogen ship with on-board LOHC-MCH system	Effective use of heat from power generation facilities and fuel cells

	LOHC-MCH storage and transportation utilizing existing
infrastructure	National stockpiles and strategic energy stockpile bases

	Hydrogen supply to oil refineries and downstream customers
Ports	LOHC-MCH receiving terminals

Steel manufacturing

Others	Supplying hydrogen to steel manufacturing plants

Distributed energy and cogeneration
	On-site hydrogen generation	Ports as hydrogen supply centers, facilitating dehydrogenation of
LOHC-MCH for and distribution to customers

Transport	Cleaner ports (storage facilities, tankers etc.)	Hydrogen stations for large-scale transport vehicles (FCV)	Cleaner hydrogen as CCU raw material	Power supply (power plants, etc.)

	Heat from hydrogen boilers

	Distributed hydrogen supply for regional transport demand

Message from an Expert

40

Message from an Expert“Hope (SPERA)” for Realizing a Hydrogen Society

SPERA (Hope) Hydrogen Saves the WorldIn the natural world, carbon stores and carries hydrogen in water, similar to carbon being a hydrocarbon
carrier for fossil fuels. In a carbon-free society with renewable energy supply chains, SPERA Hydrogen(LOHC-MCH) technology converts hydrogen energy into a liquid, transportable at ambient temperatureand pressure. As an alternative to carbon, SPERA Hydrogen (LOHC-MCH) uses toluene as carbon in thenatural world. It truly embodies the meaning of “hope.”
We are progressing towards a hydrogen society which was, until recently, only a dream. With “hope(SPERA),” I will facilitate collaboration in hydrogen between industry, academia, and government, frombasic technologies to implementation in society. The comprehensive agreement that Yokohama National
University signed with Chiyoda in May 2022 will further support this endeavor.

Executive Director Birol of the International Energy Agency (IEA) stated that the world is experiencing its
first energy crisis, because of rising prices for oil, natural gas, and coal due to the geopolitical crisis in
Ukraine. Although countries around the globe are endeavoring to secure energy, the IEA has also statedthat the worst is yet to come, referring to the ‘IEA Shock’, as outlined in its Net Zero 2050 scenario.
Demand for oil and gas is nearing a peak and unless action is taken, heavy machinery, chemicals industries, and thermal power plants, which rely on fossil fuels, will cease to function and clean hydrogen willbe the only available option. The IEA was created following the Oil Shock and has a duty to strategicallystockpile petroleum, but in the Net Zero world, it will probably stockpile 1.2 billion barrels of SPERA
Hydrogen (LOHC-MCH), an enormous amount.

Chiyoda Corporation CHIYODA REPORT 2022

Shigenori Mitsushima
Professor, Graduate School of Engineering,
Yokohama National University
Principal Researcher, Chemistry ofHydrogen Energy Conversion Research Unit,
Institute of Advanced Sciences
Leader of Green Hydrogen Research Laboratory,
Advanced Chemical Energy Research Center
President, Hydrogen Energy Systems Societyof JapanNobuo Tanaka
Chair, the Steering Committee for Innovation
for Cool Earth Forum (ICEF)
Former Executive Director, International
Energy Agency (IEA)
CEO, Tanaka Global Inc.

41

SUSTAINABILITY STORYSUSTAINABILITY STORY

Illustration of completed facility
Courtesy of Qatar Energy

Our Vision for Project Execution
The Chiyoda group has been involved in the construction of 14 trains of LNG plant in Qatar and finished EPC
work on 12 of these trains. Maximizing the knowledge it has gained from this abundance of experience,
Chiyoda is closely collaborating with customers, licensors, and subcontractors to successfully complete thisnational project while using the latest in digital technologies.
SPECIAL FEATURE

The Challenge for Cleaner LNG Plants
for a Stable LNG Supply~The North Field East LNG Project in Qatar~

LNG Production Facility Construction Project in North Field East of Qatar
Chiyoda, in joint venture with Technip Energies* (CTJV), is executing the engineering, procurement and construction (EPC) phase of the North Field East LNG project (NFE) for Qatargas (the Client) in Qatar, with completion in 2027. The project comprises four LNG trains of eight million tons per annum capacity each and is thelargest LNG plant ever to be constructed.
A year after commencement, the geopolitical crisis in Ukraine caused the natural gas price in Europe tosurge as LNG demand dramatically increased. The global transition to cleaner energy by reducing greenhousegas emissions also continues in parallel, increasing the need to minimize CO2 from LNG plants.
Chiyoda is executing the NFE mega LNG project to resolve these two global issues.
* Technip Energies is a leading Engineering & Technology global company for the energy transition with more than 60 year’s experience.

Message from the Project Manager
in Yokohama office‘One Step Further’ to drive the project forward.
As a project motto, ‘One Step Further’ illustrates how CTJV is using new values fora ‘Better Tomorrow’ and applying past experience to advance into the future.
Through its ‘One Step Further’ philosophy, CTJV is conquering unique global
challenges, such as COVID-19 and the geopolitical crisis in Ukraine, to realize NFE.
By applying effective tripolar execution management, integrating global supply chains,implementing an effective AWP system, utilizing valuable ‘Lessons Learned,’ andapplying state-of-the-art CO2 emission reduction technology, CTJV is delivering aworld-class LNG facility, the largest of its kind ever constructed.

Kazunori Sugimura
Project Manager

42

Chiyoda Corporation CHIYODA REPORT 202201

Tripolar Operation

02

Global Supply Chains

By severely restricting international travel, COVID-19
affected the project from execution commencement
and CTJV and the Client agreed that the CTJV Project
Directorate would be based in Doha. Chiyoda applies cutting-edge IT technology to implement an efficient ‘Best for
Project’ tripolar execution management philosophy, connecting Chiyoda’s Yokohama office, Technip Energies Paris
office, and the Doha project office.
By effectively exploiting time differences between officelocations for rapid decision making, the project is proceeding on schedule under a ‘One Team’ project philosophy.


Chiyoda and Technip Energies are successfully combing
their respective global supply chains to maintain the projectschedule since EPC award in May 2021, exacerbated by
the geopolitical crisis in Ukraine, without compromisingquality or schedule. All major equipment has been procured
as of May 2022.

03

04

Enhancing EPC Execution Management with
Chiyoda AWP*

Chiyoda AWP is being applied to integrate engineering
design, material and equipment procurement, and construction delivery schedules to effectively manage the project, which will employ over 45,000 workers at its peak andinvolves the delivery and installation of large volumes ofmaterials and equipment.
The system utilizes digital technology to package andalign engineering, procurement, construction, and commissioning to minimize ‘rework’ on site and NFE’s civil engineering work, such as underground piping, is progressing
on schedule using Chiyoda AWP.
* Advanced Work Packaging (AWP) is an ‘in-house’ developed digital integrated management tool, implemented throughout a project’s entire life cycle, from initial planning tocompletion and handover, to optimize the EPC process.

Lessons Learned

Six similarly large LNG trains, all designed and constructedby CTJV from 2004 to 2010, are currently in operationin Qatar. This enables the joint venture to use valuable‘Lessons Learned’ from previous project experience in astringent and comprehensive risk management programthat successfully identifies, evaluates, and mitigates project
execution risks.
05Capture and Storage of CO2

The NFE project encompasses CO2 capture and storage
technology and stores CO2, separated from natural gas byAcid Gas Removal (AGR), underground. By successfully
capturing and storing CO2 that would otherwise be released
into the air, emissions are reduced by more than 25% compared to existing LNG plants.
ProfileMr. Kazunori Sugimura is the NFE Project Manager based in Yokohama. Having joined
Chiyoda in 1995, he worked as a rotating equipment engineer for 12 years, being
responsible for equipment during the Front-End Engineering Design (FEED) and EPC
phases of LNG projects worldwide, including Qatar. He was subsequently transferred to
the Project Division and was engaged on projects overseas before being promoted to
FEED Engineering Manager on a floating LNG plant for a major oil company. His extensive project management experience has been accumulated in the oil and gas industry.

43

SUSTAINABILITY STORYSUSTAINABILITY STORY

Groundbreaking Ceremony: President Joko Widodo (center)
Courtesy of PT. Freeport Indonesia

Successful Completion of ProjectAs a leading integrated engineering contractor with an extensive track-record of completing EPC projects
across the globe, Chiyoda is applying its ‘One Team’ collaborative approach to the project, cooperating withthe customer, the licensor, and subcontractors to leverage the latest digital technologies and successfully
deliver a state-of-the-art plant.
SPECIAL FEATURE

A Challenge!
A Stable Supply of Copper toSupport a Carbon-free Society
Construction of One of the World’s Largest Copper Smelting Plants
Copper is widely used in electrical wiring, electric vehicles, storage batteries, motors, and other electricalequipment due to its superior conductivity compared to other metals and will be an essential material ina carbon-free society.
To meet the expected increase in copper demand, Chiyoda is in the execution phase of a copper smelting
plant for PT Freeport Indonesia (PTFI) in the Gresik District of Indonesia, inaugurated by President Joko
Widodo in a groundbreaking ceremony in October 2021 and due for completion due in 2024. The plant willprocess copper ore from PTFI’s Grasberg Mine, one of the world’s largest gold and copper mines and, witha production capacity of 480,000 tons per annum, includes one of the world’s largest single line production
capacities and features advanced environmental capabilities to meet standards set by the International
Finance Corporation.

01

Chiyoda’s Track Record in Indonesia

Chiyoda’s unrivalled track-record in Indonesia since 1980
includes the successful delivery of diverse projects acrossfields such as infrastructure, general industry, and energyrelated industries including oil and gas, petrochemical and
LNG. Chiyoda also continues to maintain the first, and hitherto only, large Indonesian copper smelting plant processing ore from the Grasberg Mine, constructed by Chiyoda in
the late 1990’s.
03Strengthening Project Execution throughChiyoda AWP

As illustrated by the NFE project in Qatar, the Companywide
implementation of Chiyoda AWP strengthens our project
execution capabilities and increases the certainty of project
outcomes for our customers.


Message from the Project Director

Aiming for Success with Close Relationships
Based on Trust
Key customer project personnel have been embedded in Chiyoda’s project management team at our global headquarters for over seven years, collaborating in
discussions covering the environment, licensor selection, constructability etc,
since the initial planning stage. This open, honest, and transparent execution
philosophy ensures a win-win ‘Best for Project’ outcome for all stakeholders.
The three participants (including licensor) function as ‘One Team’, supported by
the top management from each organization to reinforce our working relationship at the most senior level, to successfully deliver this world class project.

Kenichi Ishiguro
Project Director

44

Chiyoda Corporation CHIYODA REPORT 2022

Profile:Since his role as Engineering Manager for Mitsubishi Materials Corporation on the copper
smelting project in Indonesia from 1996 to 1998, Mr. Ishiguro has successfully completed
construction projects in Japan and around the world for Chiyoda, including titanium andnickel smelting plants. Mr. Ishiguro has participated in rare earth metal resource information
gathering, the development of neodymium magnet production methods and is essential in
Chiyoda’s pivotal role in nonferrous metal smelting.

Overview of the plant under construction
Courtesy of P.T. Freeport Indonesia

02

Chiyoda’s ‘One Team’ Project
Execution Strategy

Freeport-McMoRan Incorporated (FCX) – A World
Leader in Copper
FCX, a world-leading operator of large, long duration, anddiverse assets with significant reserves of copper, leads the
management of the project, with PTFI as the major sponsor. Chiyoda’s ‘relationship’ strategy for successful project
execution is demonstrated by the early inclusion of FCX
staff members in Chiyoda’s project management team at
our global headquarters in Japan, fostering our shared philosophy of a collaborative and proactive project culture andembedding productivity and efficient plant operation within
the projects execution planning.

Metso Outotec (MO) of Finland – One of the World’s
Few Copper Smelting Licensors
The plant’s facilities include a smelting plant, electrolysis
plant, sulfuric acid plant, slag collection facility, wastewater
treatment facility, and peripheral equipment, engineered,constructed, and commissioned using technologies licensed
by MO fulfilling the unique pivotal licensor role. As part of
Chiyoda’s cooperative ‘One Team’ approach, Chiyoda andMO transfer key engineering personnel across offices toensure engineering expertise, experienced in the plants
detailed design, is available on the project during execution
and to ensure engineering design challenges and queries
are resolved expeditiously.

CTCI Corporation
There is a single point of contract with Chiyoda’s Indonesiansubsidiary on the project, while engineering, procurement,
and construction will be executed in collaboration with CTCI
Corporation in Taiwan. Chiyoda and CTCI’s ongoing closeworking relationship has developed over 40 years andincludes a joint venture (JV), formed in 2017, to successfully
deliver a sponge titanium production plant in the Yanbu industrial complex of the Madinah Province of Saudi Arabia for a
Toho Titanium Co. Ltd/Saudi Arabian company client JV.
45

SUSTAINABILITY STORYSUSTAINABILITY STORYROUNDTABLE DISCUSSION

Human Resources Create Value

The greatest asset of an engineering company is its people, its human resources, the driving force that creates
corporate value. Chiyoda defines goals for human resource development with the aim of advancing andexpanding its pool of human resources. In fiscal year 2021, the Company launched a human resource system
under a CHRO and four HROs, appointed from the four disciplines responsible for advancing human resource
development.
The picture below shows the CHRO and the four HROs discussing the results of their activities thus far,including further issues to address and their vision for the future.

HRO Mission
1. Visualizing current position of human resources value
Career development discussions

Job category decisions

FY2021: Outcome of ‘(0) KNOW’ Process
1. Career Development Discussions

HRO interviews

All employees have conversations with their managers about theirpast, current, and future careers. Held every year.

2. Identifying human resources visions
3. Propelling processes to realize visions

	Career development dialogues got you to think more
about careers:
Yes 80%(0) KNOW(1) PLAN(2) TRAIN(3) EVALUATE(4) NEXT STEPS• Dialogues• Understandcareer change
aspirations• Plan and finetune careerchanges andassignments• Execute careerchanges andassignments• Follow up withpeople whochanged careers• Monitoring• Dialogues withmanagers• Assessment andpromotion• Advancement

2. Job Category Decisions
	Decided upon career development discussion or
HRO interview

3. HRO Interviews	Interviewed about 50% of career-track employees(Achieving target for FY2021)* HROs will examine new measures with HR Division based on opinions of employees and issues abouthuman resources gleaned from dialogues(From left to right)

Masaki Kumagai

Nobutaka Nagahashi

Ayako Shoda

Takuo Yasunishi

Shimpei Saito

Mr. Kumagai joined Chiyoda in 1985 andworked on overseas project instrumentation
design and installation in the Instrumentation& Control Systems Department. In 2010, he
was appointed the General Manager (GM) of
the Construction Estimation Department andthe Offshore Upstream Business Operation
Department, prior to being relocated to the UK
as Executive Director of the subsidiary Xodus
Group Limited. In 2019, he was appointed
Assistant to the Division Director of the DX
Division and, after serving as Vice President ofEnergy Project Operations, was appointed
Chief Digital Officer (CDO) and Division Directorof the DX Division in April 2021. In April 2022,
he was appointed CHRO, CDO and Division
Director of the HR & DX Division.

Mr. Nagahashi joined Chiyoda in 1991 andworked as an accounting manager for overseas projects in the Accounting Department..
He was appointed GM of the Secretarial Officeand Corporate Planning Department in 2014,
GM of the Human Resources Development(HRD) Department in July 2019 and HRO-Cx in
September 2020.

Ms. Shoda joined Chiyoda in 1997. She holds
a master’s degree in chemical engineeringand Professional Engineer (PE - Chemical) certifications in Japan and the USA. She has
worked in the process design of oil refining foryears including 5.5 years in the leader position
for the section. In September 2020, she wasappointed HRO-Ex and has also managed the
Health Management & Diversity Promotion
Office in the HRD Department sinceApril 2022.

Mr. Yasunishi joined Chiyoda in 1994, working
on process equipment and licensing operations for environmental equipment in theEnvironmental Technology Department.
He was relocated to the Domestic Project
Department in 2004, being responsible forpetrochemicals on domestic projects andgaining further experience while on customer
assignments for two years. He was appointed
GM of the Technology Development
Department in 2019, HRO-Bx in September
2020 and has served as GM of the Business
Innovation Department since April 2022.

Mr. Saito worked in the Civil Engineering
Department after he joined Chiyoda in 1995,
before being responsible for overseas projects
following his relocation to the Project Divisionin 2000. Having worked on overseas projects
for 12.5 years, his extensive experience
includes a copper smelting plant in Myanmar,a methanol plant in Saudi Arabia and LNG
plants in Qatar and Australia. He wasappointed GM of the SQEI Department in 2020and HRO-Px in April 2022.

Human Resource
Development
Goals

Basic Attitude

Business Execution
Abilities

Organizational Management
Capabilities

Professionalism as standard

Accelerating growth and enhancing our‘Business Execution Abilities’

Early appointment and development of
human resources with ‘Organizational
Management Capabilities’• Awareness & improvement as
a professional• Humbleness & communication skills• Independence & determination to takeon challenges• Capability to unite a team• Capability to accept & make the most ofdiversity• Capability to improve & develop humanresources/organization

Ex: Engineering
Professional

Exemplary knowledge in
specialized technology
domains

Bx: Business
Incubation

Challenge new businesses
and innovations

Px: ProjectManagement

Central figure in projectorders and execution

Cx: Corporate
Professional

Supporting organizations
and projects, in charge ofsteadily executing corporate
functions

Four Job
Categories

46• Ability to set & complete tasks• Customer oriented with a bird’s-eye view
• Ability to respond to changes• Ability to contribute to organization• Ability to mix digital technologies withvalue creation• Expertise

Chiyoda Corporation CHIYODA REPORT 2022

Kumagai CHROMr Nagahashi, in your role as GM of
the HRD Department, what are your thoughts regarding
the 2021 fiscal year results?
Nagahashi HRO
The year commenced with approximately
1,300 employees in career-track positions selecting theirjob categories. Firstly, I created opportunities for employees
to interview with their HRO, in line with the stage of our new
human resources system where we better understandcareer views and intentions, and approximately 700 participated. After articulating their career views and intentions,employees were able to decide on their job categories,
while reflecting on the Company’s training aims.
I soon learned that the diverse working, and careerfocused, views of our employees are essential to advancehuman resource development.
Kumagai CHROAs HRO’s conversing with employees,
what are your thoughts regarding Chiyoda’s activities
in the 2021 fiscal year?
Nagahashi HRO
I conducted interviews with senior-level
employees who were unavailable under the previous system
and many were concerned about passing the skills, wisdom,and expertise accumulated throughout their careers onto
the next generation. It was refreshing to learn how seniorcolleagues genuinely feel responsible for the future, andthink about the opportunities for the younger generation of
employees to verbalize their thoughts.
Yasunishi HRO
The opportunity to meet and talk with many
employees as an HRO was unforgettable and I now recognize the true diversity of our employees in terms of generation, careers, and their environments, even more than before.
In the 2021 fiscal year, the challenge for the Company
was to meet the escalating requirement to assign personnel
to projects, and meet additional training requirements todevelop our human resources, due to increasing work volumes. When large numbers of personnel are required on
projects, assigning personnel becomes more of a challenge
due to capacity restraints. I am also conscious of the personal sacrifices made by employees in order-driven industries such as ours.

Shoda HRO
Interviews with employees are essential togather information and encourages closer working relationships between the HRD department and others. As an
HRO, interviews also enable me to connect names to faces
and the individual subject matter.
Chiyoda aims for a profit contribution ratio of 50%
between existing and new businesses. The interviews reinforced my desire to effectively assign our 1,300 employees
for both their and the Company’s benefit, by achieving individual and organizational goals.
The interviews are an ideal opportunity for employees toreevaluate their own careers, the meaning of work, and theroles expected of them, and reassess targets for their personal growth. I believe that our discussions changed how
many employees approach their daily work, with some
employees likely to seek new challenges within the Company.
Although it is not easy to match individual employee
aims and personal goals with the Company’s overall direction, this task has been an essential part of Company operations over the past year.
Saito HRO
Since being appointed as GM of the Safety,
Quality, Environmental and Information Security (SQEI)
Department over two years ago, I have monitored ourconstruction site activities to identify and explore ways
to improve project execution workflows and enhance
Companywide corporate operations, while remaining conscious that human resources are pivotal to strengthening
the Company’s business execution capabilities. As ourhuman resources develops, our competitiveness will
improve and, hopefully, this will lead to increased profitability, enabling Chiyoda to conquer new challenges. I want toincrease awareness of the importance of strengthening ourhuman resources, and implement initiatives that that release
employee leadership qualities, for which these HRO interviews are essential.
Although I have not conducted as many interviews as
I would like, I am keen to hear the thoughts of our many
employees and understand their opinions, so that I can
support them in their career choices and align them withbusiness plans.

47

SUSTAINABILITY STORY

48

Chiyoda Corporation CHIYODA REPORT 2022

human resources. Chiyoda’s foundations should support
the growth of diverse human resources in the Company.
A company needs to grow, both in terms of humanresources and as an organization, to strengthen its competiveness, and experience is the most effective way for
employees to grow. Successful project execution in thepast has required allocating experienced personnel, but alack of delegation of authority to young and mid-career
employees may prove to be a problem. Looking ahead,
Chiyoda needs to modify its approach to project employee
assignment to advance human resource development.
Organizational assistance is required to construct asystem that also supports senior and more experienced
employees, to allow unrestricted growth in humanresources.
Nagahashi HRO
Many departments are very busy andallocating time for individual human resource communication activities is challenging. Some employees also carry
more of a burden than others. Initiatives are required at anorganizational level to fix these problems. The Company
could establish monthly meetings for HROs and the HRD
Department to discuss human resources with overseas
project managers to more fully understand employee training issues and collaborate to overcome these challenges.
I look forward to engaging in such initiatives.
Under our Revitalization Plan,
Chiyoda aims to transform its business portfolio by
simultaneously developing new and existing businesses. I would like to ask Mr. Yasunishi and Mr Saito,
as representatives of new and existing businesses
respectively, to explain their approach to humanresources.
Yasunishi HRO
A tangible change in human resources
would be required for ‘new’ businesses to expand enoughto produce 50% of overall profits. Although it is generally
assumed that additional human resources would be
required for the Company to enter new business fields, thisis not necessarily the case. The definition of ‘new’ is broadand could apply to a change in scope from an upstream toa downstream business field, for example. The types ofhuman resources required would depend on the circumstances, but there would be many opportunities for existing
employees. The human resources involved in new businessdevelopment are currently mainly mid-career employees,
and I would like the Company to encourage existing
employees to participate in job rotation as it reforms its
Kumagai CHRO

Kumagai CHRO
Finally, please talk about your visionsfor HRO activities in the 2022 fiscal year.
Nagahashi HRO
HROs will continue striving to more fully
understand management and employees alike, and bringthem closer together. Our focus in fiscal year 2022 will be
communicating the ‘lessons learned’ from these activities,
which will involve conveying employee ‘needs and wants’
to management to take action and, equally, conveying
management’s vision to employees. As the business environment surrounding the Company and the conditions
within Chiyoda change, a fundamental goal of HROs should
be to continue aligning employee desires with theCompany’s business plans.
Shoda HRO
I intend to implement measures and frameworks that illustrate our achievements to employees in aneasy-to-understand format and, while it may take time forour employees to feel the benefits from these initiatives, thiswould enable me to explain our achievements in detailduring the year.

SUSTAINABILITY STORY

Kumagai CHRO
We have a solid understanding ofbusiness and management plans in our activities as
HROs and aim to align Company objectives with the‘needs and wants’ of our employees which become
apparent during interviews. What human resource andorganizational issues can be addressed?
Yasunishi HRO
Work-fronts are constantly changing inour order-driven industry and we need a system that can
nimbly reallocate human resources to match. This problem
cannot be solved by the HRD Department alone. I see aneed to clarify business scope and responsibilities at project and departmental levels, reform workflows, reassess
appropriate employee numbers in each department while
adhering to business plans, and strengthening relations
with subsidiaries and affiliates. Optimizing resource allocation, hiring new personnel, and reviewing corporate culture
are also required. It is essential to conduct integrated
discussions on a broad range of subjects as we takethese steps.
Following the creation of the new HR & DX Division and
Human Resources Management Committee, the structure
is in place to build systems to strengthen our competitiveness, as we facilitate discussions on broad topics that go
beyond personnel matters.
Shoda HRO
Are employees maximizing their own capacity
to achieve ‘stretched’ goals that could initially feel ‘just outof reach’?
Steady project execution is a Key Performance Indicatoron Chiyoda projects. There is a belief in our corporate culture that the correct course of action is to implement methods that have proven effective in achieving targets in thepast. While this is true to a degree, it is necessary to experiment and advance different methods, or instigate newideas and perspectives, to achieve ‘stretched’ goals. A culture that penalizes failure will not motivate employees toexperiment with original ideas. While recognizing our value
systems and customs, some ‘unlearning’ to understandwhat is required in practice and encouraging new ideas
could be necessary.
Saito HRO
From HRO interviews and other activities, mybelief is that some employees are exhausted and Chiyoda
needs to address a personnel shortage. As the global drive
towards decarbonization gains momentum, demands onthe engineering industry will only increase and to secure thecapacity to meet this demand, Chiyoda must consider all
avenues to ensure it has sufficient personnel, including
hiring mid-career operatives and utilizing external partner

business portfolio. I hope that all employees will thrive,
whether in ‘new’ or existing businesses.
Saito HRO
In the current situation, where our limited
internal resources need to be invested in new businesses,
I think the Company should change the ‘mindset’ that existing LNG projects require the mobilization of large numbersof employees to execute the project. Chiyoda should
steadily execute projects with fewer employees to add
value, especially as there are talented external humanresources that we can utilize.
Kumagai CHRO
Indeed, both our existing EPC businessand new business development present challenges and weshould nurture a mindset among employees that welcomessuch challenges. The global demand for LNG is expected
to continue rising as the world transitions to cleaner energy
and this is why business reform is required. We should
endeavor to instill a mindset that accepts change.

I agree with Ms. Shoda. Although we
may differ on specifics, I would also like to establish andimplement an easy-to-understand system demonstrating
our achievements, of which all employees should berightly proud.
Saito HRO
As a vision for fiscal year 2022, we should aim
to match: (1) must, (2) can, and (3) will, when assigningsuitable human resources to fill vacancies. Although theactual number of employees who would meet these criteria
would be limited, this is the ‘ideal’. I will also support those
who do not meet all the criteria in choosing career paths,
bringing them closer to this ‘ideal’ at their own pace.
Nagahashi HRO
I see the requirement for a frameworkthat ensures the effective use of the vast amount of information gained from meaningful employee dialogue, suchas the mismatch between current and ideal conditions or
career paths. This is a challenge I will confront in fiscal
year 2022.
Kumagai CHRO
The Executive Advisory Committee created the Human Resources Management Committee in
April 2022, comprising the heads of all divisions, tasked
with clarifying human resource requirements and identifying
training plans required to achieve business plan objectives.
This helps the HROs more clearly convey the Company’s
aims and direction to employees. Using human resource
information collected by HROs thus far, we can better identify any mismatch between human resource ‘needs andwants’ and business objectives as we steer employee
growth and company development in the same direction.
We aim to transform HRO endeavors into reality throughthis committee and, looking ahead, the Human Resources
Management Committee, HRD Department, and HROs will
collaborate as ‘One Team’ to accelerate efforts to improve
our human resource capabilities.
Yasunishi HRO

Vision for FY2022
Put the right person in the right post

Increase number of
employees positioned in
ideal conditions

(1)
must
(3)
will

(2)
can

(1)	Identifying human resources and skills needed by the Company basedon business plans
Updating talent management system(2)	Visualizing and expanding abilities of human resources
Career development discussions, updating talent management system,and developing human resources(3)	Understanding career aspirations
Career development discussions, and HRO interviews
Matching of (1), (2), and (3)Harnessing Value of HROs

Standing in the middle of management,
employees, and line managers, HROs aim tobring everyone close together.
• Human resources support
in business strategy• Business partners

Management• Supporting career
HRO• Accompanying
development
business executionLine• Coaches
Employees
Managers • Business supporters• Advisors

49

SUSTAINABILITY STORYSUSTAINABILITY STORY

Accelerating Companywide
Digital Transformation (DX)

SPECIAL FEATURE

In July 2021, Chiyoda created a CDO Office to advance Companywide DX based on Chiyoda’s DX Vision andthe Four Basic Strategies of Project Execution Management, Business, Corporate Management, and Human
Resources. The office comprises a Digital Officer (DO) selected from each division reporting to a CDO, and DX
evangelists to cooperate with the DOs in accelerating DX plans.
Chiyoda has been accelerating Companywide human resources DX initiatives since establishing the HR &DX Division CDO Office in April 2022, enhancing its human resources to increase competitiveness throughsteady business execution, and securing profits by improving efficiency.

Interviews with DOs and DX Evangelists
DO: Corporate Management DX

DO: Project Execution Management DX

Human Resources Management Upgrade

Introduction of a Scalable Project Management Environment

Chiyoda uses digital tools to advance humanresource management, enhancing the visualization and analysis of employee skills and abilities within a talent management system. The
goal is to improve the alignment of personal‘needs and wants’ with the Company’s overall
objectives to optimize employee assignment
based on business plans, and increase corporate value by maximizing the potential of ourhuman resources.

Chiyoda’s DX Vision

The Chiyoda Group aims to be a new leading engineering company
by actualizing four digital transformation strategies.

A scalable project management environmentis one where project management techniques
and practices, e.g.: human resource management, risk management, cost control etc., aretailored for projects depending on their size,
risk and complexity. ‘Scaling’ project management, i.e.: optimizing project control, according
to varying demands across different projects
increases business efficiency and reduces execution risk. My Global Environment & Green
Energy Project Operations Division executes
different size projects in many fields, including
petroleum, chemicals, renewable energy, andlife sciences, all of which are applicable to ascalable project platform whereby schedules
and costs are managed based on the characteristics of each project. Chiyoda promotes
DX initiatives to reform our operations andmaximize efficiency.

Acceleration of Companywide DX: Four Basic Strategies
Project Execution Management DX

Corporate Management DX

DX Business

Project execution

Collaborative work environment

Digital business establishment

Supply chain collaboration

Corporate business management

Engineering design development

Human resources management upgrade

New area business promotion utilization
digital technology

Human Resources DX
Digital human resources
development

DX mind andculture fostering

Tetsuo Matsushita

Satoshi Tanaka

Corporate Planning
Department

Advanced Industries
Project Section
Life Science Project
Department

DO: Project Execution Management DX

DO: Corporate Management DX

Engineering, Design, and Development

Robotics Process Automation (RPA)

DX promotion andplanning function establishment

Plant engineering encompasses ‘concurrent
engineering’ in which engineering processes
are simultaneously advanced while sharing
design data in a continuous loop with otherprocesses, and the coordination of procurement and construction during engineering.
We use digital technologies in advanced project management to visualize voluminous andcomplex engineering data and strengthenrisk management, improve profitability, andincrease efficiency.
By accelerating Companywide DX to improve
efficiency through advanced engineering execution, we improve our organizations competitiveness and add value for customers.

CDO Office Structure

Project DX

Corporate DX
CDO OfficeCDO(1 person)DOs(28 people)

DX Evangelists(16 people)•	Execute Companywide DX
acceleration plans•	Promote collaboration among divisions
for executing Companywide DX plans•	Accelerate DX execution within eachdivision while collaborating with DOs•	Organize CDO Office as planning
function•	Lead planning and execution of eachDX acceleration plan•	Convey information from working
level up the management ladder,lead execution of plans

Human Resources DX

Message from the CDO

Kumagai Masaki (Center)
CHRO & CDO / Director of HR & DX Division

Chiyoda is accelerating Companywide DX,
aiming to be fully digital in project execution
and corporate management, to rapidly respondto society’s varying needs and changes in our
external business environment, while increasing
efficiency, optimizing operations, reinforcing risk
management, strengthening earnings capabilities, and flexibly allocating resources. ThroughDX, Chiyoda will consolidate its position as a
new leading engineering company by adding
value for all stakeholders.

Yuji Mihara
Piping Digital Engineering
Transformation Section
Piping Engineering
Department and Engineering
Innovation Team Technology &Engineering DivisionThis is the third year of using RPA to improve
efficiency, productivity, and work quality byautomating business processes with IT, andI am certain that its scope will widen as it
becomes more widely understood across
our organization. My goal is to continue
accelerating Companywide DX to improve theCompany’s output, using RPA to complete
repetitive tasks enabling employees to spend
time on higher value-added activities.

Koichi Kawabe
Quality and Information
Security Section,
SQEI Department

DX Evangelist: Project Execution Management DX

DX Evangelist: Human Resources DX

Project Execution – Chiyoda AWP

Digital Boot Camps

Tatsushi Hisaoka
NFE Team,
Energy Project Operations
Division

Chiyoda AWP recognizes the necessity for
seamless interface between engineering, procurement, construction, commissioning andstart-up and enhances our EPC execution
capabilities by integrating these EPC processes
throughout a projects entire lifecycle. We implement Chiyoda AWP on the NFE project, focusing on construction execution as the driver forsequencing engineering and procurement
schedules, including engineering documentation ‘Required on Site’ dates and material andequipment delivery dates, to ensure all deliverables arrive at the ‘work face’ as and whenrequired, improving productivity, increasing efficiency, and reducing costs. Managing the enormous quantity of engineering, procurement, andconstruction work packages required to implement Chiyoda AWP would not be possible without digital technology. My goal is to strengthen
our project execution capabilities by effectively
applying digital technology with Chiyoda AWP.

Chiyoda has formed ‘task teams’ of DX evangelists and conducted ‘Digital Boot Camps’,
where Chiyoda Group company employees
discuss topics such as DX issues relevant for
Chiyoda and the content of DX material, topromote DX employee awareness. External
lecturers are also invited to discuss case studies in other companies, the latest IT tools used
to develop and implement DX and the use
DX within Chiyoda. We will continue advancing
Companywide DX transformation by expanding on these initiatives.

Naoki Ueda
Human Resources
Development Section
Human Resources
Development Department

50

Chiyoda Corporation CHIYODA REPORT 2022

Job titles are as of April 31, 2022

51

BUSINESS STRATEGY
BUSINESS STRATEGY

BUSINESSSTRATEGY
This section introduces the Chiyoda Group’s business model and

CONTENTS
54 Business Domains / Business Models
55 Low Carbon and Carbon Recycling
56	Hydrogen Business(SPERA Hydrogen™ and Ammonia)
57 Energy Management Business
58 Life Science Business
59 Digital Transformation (DX Business)strategies to create sustainable value.

52

Chiyoda Corporation CHIYODA REPORT 2022

53

BUSINESS STRATEGYThe Chiyoda Group is addressing the increasingly complex
challenges faced by our customers and society in general, while

creating new value in engineering

VISIONLife Science
Business

Digital Transformation (DX)DX Business Promotion & Innovation

Stable supply ofclean energy

Our advantage

EnergyManagement
Business

Realization ofa hydrogen-based society

LNG x CCS*1
Copper smelting

Chiyoda’s project lifecycle engineering is core to our business model during all project stages,
from planning to Front End Engineering Design (FEED), EPC, commissioning,
handover, and Operations and Maintenance (O&M).

EPC

Construction

Commissioning

R&D support

Technology Development
Department
O&M

O&M

Engineering data
warehouse* FEED: Basic plant engineering including planning andfeasibility studies

54

Chiyoda Corporation CHIYODA REPORT 2022

Message 2

Revamping /Expansion

De-commissioning

Feasibility study
Planning	Promoting metal resources that is
indispensable for a low-carbon
society

Contribution tocarbon recycling
society• CO2 in concrete materials• Synthesizing chemical material
from CO2 and hydrogen
Message 2

	Business deployment of CCUS
	Business deployment ofe-fuel / SAF*1 Carbon dioxide capture and storage*2 Carbon dioxide capture, utilization, and storage

Message 1

Project
Lifecycle
Engineering

Message 1	Promoting cleaner LNG with
captured CO2 liquefaction process,liquefied CO2 storage, andtransportation system• Manufacturing ethylene from CO2
and water

Yu Kodani
FEED / Basicengineering	Capturing CO2 from LNG
exhaust gas

Way forward	Technology development of
CCUS*2

Project Lifecycle Engineering

Engineering

Reduction of
CO2 emissions

	Copper smelting project inIndonesia (copper is an essential
material in a carbon-free society.)

Optimizing energy
utilization
Promoting renewableenergy and power storage

Procurement

Achievement
	NFE LNG Project in Qatar(reducing CO2 emissions by morethan 25% compared to the existing
plant)New technology
application

FEED*

StrategyHigh value life sciencesolution provider

Hydrogen
Business(SPERA
Hydrogen™ andAmmonia)

Dedication to LNG through the energy
transition and decarbonized energy supply
Engineering application to carbon recycling

through DX in the four business domains of
Low Carbon and Carbon Recycling, Hydrogen,
Energy Management, and Life Science.

Low Carbon
and Carbon
Recycling

BUSINESS STRATEGY

Low Carbon andCarbon Recycling

Business Domains / Business Models

Karuna Takagawa

Developing the Technology to Separate and Capture CO2
in LNG-fired Power Plant Flue Gas
Chiyoda’s project to develop solid absorbent technology to capture post-combustion CO2 from
LNG-fired power plant flue gas with the Research Institute of Innovative Technology for the Earth(RITE) and JERA Co. Inc. (JERA), as proposed to the Ministry of Economy, Trade and Industry(METI), was selected for funding and development by the New Energy and Industrial Technology
Development Organization’s (NEDO) Green Innovation Fund.
The development and implementation of such technology in society is central to Chiyoda’s business as we aim to realize our corporate philosophy of ‘Energy and Environment in Harmony’ by
applying our process development and engineering capabilities to develop technologies that will
significantly influence a future carbon-free society.

Developing the Technology to Synthesize Paraxylene from CO2
and Hydrogen
Chiyoda has been developing the technology to produce paraxylene (PX), a basic compound used
to make polyester clothes and PET bottles, using CO2 and hydrogen as raw materials. Using CO2 asa substitute for existing fossil fuel (eg: coal and oil) derived PX, results in ‘negative’ emissions as theamount of CO2 required during the process is greater than that emitted. Chiyoda and partners aresupporting the realization of a carbon-neutral society by developing this innovative technology andthe business for its rapid commercialization.

Business Innovation Department

55

BUSINESS STRATEGY

Energy Management
Business(SPERA Hydrogen™ and Ammonia)

VISION

Our advantage

Chiyoda’s
SPERA
Hydrogen™

Hydrogen /ammonia
technology
application

Strategy

Hydrogen supply
chain solution
business

Hydrogen /ammoniaengineeringbusiness

Realizing a hydrogen-based society throughChiyoda’s multiple hydrogen carriers, centeredon our unique SPERA Hydrogen technology

Achievement

Way forward	Promoting hydrogen supply chain
in Singapore	Semi-commercialization ofhydrogen supply business in theearly 2020s, Commercializationin the late 2020s

Message 1	Promoting hydrogen hub in
Rotterdam, Europe

	Feasibility studies of hydrogen
supply chain and ammonia
receiving facilities
Message 2

	Development of ammonia
producing technology with lower
temperature and pressure fundedby GI Fund*	Hydrogen cost reduction throughfurther technical development of
SPERA Hydrogen	CO2 reduction by mixed
combustion of ammonia andcoal and CO2-free gas power plantwith hydrogen supply	Production / receiving facilities ofhydrogen / ammonia* Green Innovation Fund by New Energy and Industrial Technology Development Organization (NEDO)

Message 1

Masahiro Shinohe
Hydrogen Business Department

Message 2

Tetsuya Fujino

Developing the Technology and Commercializing a SPERA Hydrogen
Supply Chain
The supply of hydrogen to provide cleaner energy in Singapore is key to the city-state’s sustainable
future. Chiyoda and partners are jointly developing the technology to commercialize a cost-effectivehydrogen supply chain, using Chiyoda’s ‘in-house’ developed proprietary hydrogen storage andtransportation system SPERA Hydrogen, to import and distribute hydrogen in Singapore. A hydrogen
supply chain into Singapore as a role model for a sustainable future hydrogen society would create
new business for Chiyoda as a licensor and catalyst supplier of SPERA Hydrogen, and would substantially contribute towards a wider carbon-free society.
I am therefore currently examining the technological and commercial issues involved in producing
low-cost clean hydrogen in countries with an abundant supply, and transporting it to Singapore on
an industrial scale using Chiyoda’s SPERA Hydrogen technology.

Conceptual Design for Ammonia Receiving Facilities
Ammonia is attracting attention as one solution whereby Japan can achieve its goal of net-zerogreenhouse gas emissions by 2050 because emissions from its combustion are carbon free. With
the aim of achieving the goal set by Japanese power generation company of 20% ammonia mixed
combustion at coal-fired power plants by 2030, my team are progressing towards engineering theconstruction of ammonia receiving, storage, and dispensing facilities including the conversion of
LPG terminal facilities to handle ammonia, having commenced conceptual design in 2021. EPC is a
Chiyoda core strength and receiving such orders enables our Company to support carbon neutrality.

Energy and Environmental Project
Department

56

Chiyoda Corporation CHIYODA REPORT 2022

BUSINESS STRATEGY

Hydrogen Business

VISION

Our advantage

Track record ofrenewable energy
power projects

Strategy

Renewableenergy, energy
storage, andEnergyManagement
Systems (EMS) PC / O&M in renewable energy, energyEstorage, and energy management fields
 reating businesses with EPC facilities
C
expertise and data application

Achievement	Construction of the world’s largest
battery energy storage plant	Construction of Japan’s largest
biomass power plant

Way forward	Promoting energy storage projects
	Promoting renewable energy
and energy storage combination
projects
Message 1	Energy as a Service (EaaS)*1

Integrated­engineering­expertise x DX

Energy utilization
optimization• Energy saving through theeffective reuse of waste heatand reducing CO2 emissions

	‘Power-to-X’; the synergy
by aligning hydrogen / ammonia /CCUS etc.

• Virtual Power Plant (VPP)*2

	Local utility businesses

Message 2*1 A ‘one-stop’ business offering utility-related services to reduce costs, increase asset values, and lower CO2 emissions*2 VPP controls power supply at industrial facilities, contributes to renewable energy prevalence and stable power supply

Message 1

Daisuke Ikegami
Power & Green Energy System Project
Department

Message 2

Development and Execution of Renewable Energy Projects
The Chiyoda Group is responding to the increasing momentum for a carbon-free society in response
to climate change, by executing renewable energy projects, such as solar and wind power generationand power storage facilities.
As of 2021, more than 400 local governments in Japan have declared their goal of achieving netzero CO2 emissions by 2050. The Chiyoda Group continues to contribute to the realization of acarbon-free society, through its corporate philosophy of ‘Energy and Environment in Harmony’, byproviding services for the local production and consumption of energy for regional revitalization andcooperating with local governments and new regional electricity providers to create a renewableenergy regional microgrid system.

Developing a New Energy Utilization Optimization BusinessOur ‘Energy as a Service’ (EaaS) business combines Chiyoda’s comprehensive engineering capabilities with the latest partner technologies, increasing customer business value by providing solutions
to reduce carbon emissions at their plants and factories and cutting operational costs. The EaaS
business contributes to our Company’s prosperous future by stabilizing corporate earnings by
expanding recurring businesses and targeting growth through synergies with other businesses.

Toshiki Honjo
Business Innovation Department

57

BUSINESS STRATEGY
BUSINESS STRATEGYLife Science Business

Digital Transformation(DX Business)

VISION

Our advantage

Strategy

Track recordof 620 projects inpharmaceuticalfieldsLife scienceengineering

CM*1
processes
expertisecultivated in thehydrocarbon
fieldsLateral expansionof next generation
manufacturing
process
technologies

High value-added biotechnology & life sciencesolution provider

Achievement	Construction of a vaccine
constituent production facility	Construction of a biopharmaceuticalmanufacturing facility
Message 1

Way forward	Expansion into next generation
pharmaceutical products: cell
remedies and regenerative
medicine

Shohei Matsuda

	Collaboration in CDMO* businessof active pharmaceutical ingredients and intermediates using
CM technology promoted by
Shionogi Pharma Co., Ltd.
2	Implementation and lateralexpansion of CM technology inpharmaceutical fields
Message 2

	Enlarging application of DX
technologies in manufacturing
processes

Space Design in Biopharmaceuticals Ingredient Production Plants
I am responsible for space design in plant facilities and space adjustments in collaboration with internal departments and external companies to enhance safety and work efficiency. Biopharmaceuticals
plants include structural materials, air conditioning systems, water supply and emission facilities,
production-related machinery, pipes, and electrical and instrumentation systems in a single structure,and it is essential to precisely adjust the spaces in each category during the facility’s design stage forsafety and efficient construction and operation and maintenance. As an engineer in the life sciencefield, I provide high-value-added pharmaceutical production facilities through my work responsibilities
and contribute to a sustainable future for future generations.

Life Science Project Department

Message 2

Yusuke SatoDX business
EFEXIS™*1

Strategy

Offering innovative
solution to optimize
plant O&M

Create new businesses through DX ofclient plant operations

Achievement

	Development and promotion of
EFEXIS™ solutions
Message 1	Development and promotion of
Mirai Fusion digital platform

Way forward

	EFEXIS™ offers;• Digital innovation in plant O&M• Next-generation O&M

Message 2

Project digitaltransformation

Full digitalizationof project
execution• Strengthening project
execution capability	Innovating design works by
PlantStream™*2 (introducing todomestic and overseas plantengineering companies)

	Expansion of PlantStream™ towater environment/ chemical plantengineering• Enhancing risk
management*1 Brand name for innovative solution to optimize plant O&M*2 Reduce space design processes in basic engineering by approximately 80% and accelerate 3D model creation by up to five times

Message 1

Kaori Nagai

Planning and Marketing New Business with Digital Technology
I am involved in the planning and marketing of DX in customer plant operations and in the creation of
new businesses.
Through the provision of the Chiyoda Group’s digital service EFEXISTM, we contribute to a sustainable society by maximizing the latent capabilities of plants, while improving productivity and availability, advancing operation and maintenance, and reducing the burden on the environment.
I contribute to the future of industry and society by creating new value, using digital technologies
with customers and partners by transforming the value into business.

Digital Products Planning & Marketing
Department

Supporting R&D in Life Sciences
The Chiyoda Group horizontally develops integrated support services, from research and development to the manufacture of pharmaceuticals, by leveraging our engineering capabilities accumulated
in the construction of pharmaceutical production facilities and the development of research testing
equipment in the cosmos field. We conduct experiments in our R&D centers at the Koyasu Office &Research Park and the University of Tsukuba, to better understand the issues faced by customers in
the pharmaceuticals development process, and deliver optimal solutions as we aim to reduce development timeframes and reduce costs in drug research.

Life Science Business Department

58

Our advantage

	Expansion into bioindustry*1 Continuous Manufacturing*2 Contract Development Manufacturing Organization

Message 1

VISION

Chiyoda Corporation CHIYODA REPORT 2022

Message 2

Wataru Fujii
Digital Products Department

Expansion of EFEXISTM Through the Digital Platform Solution:
Mirai Fusion
I advance DX in plant operations and support customers from the early concept stage, developing anddelivering solutions to challenges and providing platforms that facilitate the use of operational data.
By maximizing the power of digital technologies in plant operations, including issues such aschanges in the business environment and the advanced age of plant facilities, we increase the safety
and stability of plant operations while enabling work style reforms. We expand the Chiyoda Group’s
DX business by delivering solutions to customers, creating new value by pairing digital technologies
with our accumulated engineering expertise.

59

FOUNDATION UNDERPINNING SUSTAINABLE GROWTH
FOUNDATION UNDERPINNING SUSTAINABLE GROWTH

FOUNDATIONUNDERPINNINGSUSTAINABLE
GROWTHCONTENTS
62 Corporate Governance
68 Compliance
69 Risk Management
70 Safety Management

In this section, we describe Chiyoda Corporation’s management structure
for sustainable growth and other specific initiatives.

60

Chiyoda Corporation CHIYODA REPORT 2022

61

FOUNDATION UNDERPINNING SUSTAINABLE GROWTH
FOUNDATION UNDERPINNING SUSTAINABLE GROWTH

Corporate Governance

Basic Principles

Development and Management of the Internal Control System

Chiyoda’s vision is a management that maintains the trust and empathy of all its stakeholders, including shareholders, customers, business partners, creditors, employees, and local communities. This philosophy is the basis of our corporate activities
and we continue to strengthen Chiyoda’s business foundations, ensuring sound and transparent operations to realize sustainable growth over the medium to long term. We will also continue to strengthen corporate governance and reinforce our internal control system as material issues.

In accordance with laws and regulations, Chiyoda manages an internal control system to ensure appropriate execution ofoperations.

Governance Structure (as of June 23, 2022)
Organizational Structure

Company with Audit & Supervisory Committee

Executive Officer System

Yes

Number of Directors Of Whom, Outside
Directors (Independent Directors)

10
4 (Independent Directors)

Term of Office of Director (Excluding membersof the Audit & Supervisory Committee)

One year

Number of Audit & Supervisory Committee
members Of Whom, Outside Directors

3
2

Number of Board of Directors’ Meetings Held(fiscal 2021)

21

Number of Audit & Supervisory Committee
Meetings Held (fiscal 2021)

16

Remuneration System for Directors and Audit &Supervisory Committee members• Directors (excluding those who are Audit & Supervisory Committee members): Base remuneration(according to roles and responsibilities and based on individual assessments), performance-linked
remuneration (reflecting the Company’s business performance each term), and performance-based
stock compensation (linked to the Company’s medium- to long-term business performance
improvements)• Directors who are Audit & Supervisory Committee members: Base remuneration (according to roles andresponsibilities)

Chiyoda established an Internal Control Committee to coordinate and summarize member opinions and proposals.
At the end of the term, or when required, the Internal Control Committee proposes internal control improvements to the
President & COO.
The President & COO, through the Executive Advisory Committee, review proposals from the Internal Control Committee
and the Board of Directors makes decisions on the internal control system as required.
To enhance the framework for compliance with laws and regulations, Chiyoda has established the position of CCO anda Compliance Committee.
Corporate Governance and Internal Control System
General Meeting of Shareholders
Appoint / Dismiss

Submit / Report

Chiyoda is a company with an Audit & Supervisory Committee composed mainly of Outside Directors. Chiyoda operates asystem whereby Directors who are Audit & Supervisory Committee members have voting rights at Board of Directors meetings
and are involved in the nomination of Representative Directors and overall business execution decision-making (excluding
decision-making responsibilities delegated to the Directors).
Chiyoda has appointed four Outside Directors to ensure objective and neutral monitoring of its management functions.
Chiyoda has improved objectivity and transparency and ensured the appropriateness of its processes for appointing anddetermining Director remuneration through Independent Outside Directors and full-time Audit & Supervisory Committee
members in decision-making, fulfilling a similar role to a voluntary nomination and remuneration committee.

Audit & Supervisory Committee

Board of Directors

Board ofDirectors

Executive
Advisory
Committee• Through a resolution of the Board of Directors, Chiyoda has established an Executive Advisory Committee, composed ofRepresentative Directors, who concurrently serve as Executive Officers, and other managers at Senior Vice President level or higher at
Chiyoda Group Headquarters, including Division Directors. Chiyoda stipulates the participation of the majority of those members as anadvisory body to the President & COO, responsible for business execution of Chiyoda, enabling prompt decision-making on mattersrelated to business execution.
• The Committee decides matters regarding business execution adopted by a resolution of the Board of Directors and prior deliberationof matters to be decided by the Board of Directors, and reports to the President & COO, responsible for Chiyoda business execution.

Audit &
Supervisory
Committee• Three members (one of them is full time) consisting of two independent officers and one member with extensive finance and accounting expertise.
• The Committee conducts audits on the overall business execution of Directors.
• To strengthen its auditing activities, a dedicated staff member is assigned to assist the Audit & Supervisory Committee in the executionof its duties.

Accounting Auditors

ReportAppoint

ReportSubmit / Report

Cooperate
ReportPresident & CEO

Appoint

Compliance Committee
Executive Advisory
Committee

Instruct

Consult / Report

Instruct

Submit /ReportInstructInternal Control
Committee
SQEI Management
Committee
Sustainability
Committee
Instruct

ReportInternal
Audit Division

Audit

Internal
audit

Financial
audit

Business Execution Divisions
Control / Supervise

Group Companies

Composition and Roles / Responsibilities• 10 Directors, including Audit & Supervisory Committee members. Monthly Board meetings.
• Important management matters are determined and business execution is monitored. Appropriate decision-making and management
supervision is ensured based on the objective and neutral perspectives of the Outside Directors.
• Matters to be decided include management plans, important matters regarding human resources and major investments and loans.

Cooperate /ReportReportCCO

Chiyoda Corporation CHIYODA REPORT 2022

Appoint /Dismiss
Cooperate

Overview of Corporate Governance Structure

62

Report /Statement of opinions

Audit / Report

Note: Remuneration for Outside Directors consists solely of fixed remuneration in accordance with roles and responsibilities.

Committee

Appoint / Dismiss

Compliance with the Corporate Governance CodeIn compliance with the Corporate
Governance Code of the Tokyo
Stock Exchange, Chiyoda has formulated a Corporate Governance
Policy, detailing its basic views andguidelines on corporate governance and promotes initiatives tostrengthen corporate governance.

Please refer to the following for further information on corporate governance.
Corporate Governance Policy

https://www.chiyodacorp.com/about/181227_GCPE.pdf
Corporate Governance Reporthttps://www.chiyodacorp.com/about/20190801_CGR_E.pdf
Basic Policy on Internal Control System (Japanese only)

https://www.chiyodacorp.com/about/20200401_internal_control.pdf

63

FOUNDATION UNDERPINNING SUSTAINABLE GROWTH
FOUNDATION UNDERPINNING SUSTAINABLE GROWTH

Corporate Governance

Board of Directors

Director Remuneration System

Chiyoda’s Board of Directors is composed of seven Directors and three Directors who are Audit & Supervisory Committee
members, thus ensuring balance and diversity through a combination of Outside Directors with experience in their fields ofexpertise and Directors with specialist skills and knowledge.
Skills and experience
Name

Masakazu Sakakida

Position and title

OutsideOfficer

Representative Director, Chairman of theBoard, President, CSO and CWO

Senior Executive Vice President,
Fuminori Hasegawa
Executive Officer

Gender● Male● FemaleManagement

●

●

●

●

●

●

●

Koji Tarutani

Representative Director,
Executive Vice President, CFO & CCO●

Masao Ishikawa

Director●

Koji Ota

Director●

Finance andaccounting

Legal andcompliance

Overseas
experience

Project
experience,technical
expertise

●

●

●

●

●

●

●

Ryo Matsukawa

Outside Director*

●

●

●

Yutaka Kunigo

Outside Director*

●

●

●

Shingo Torii

Director (Full-Time Audit and Supervisory
Committee Member)

Mika Narahashi

Outside Director* (Director who is Audit andSupervisory Committee Member)●●

Hisashi Ito

Outside Director* (Director who is Audit andSupervisory Committee Member)

●

●

●

Chiyoda’s Director remuneration system was approved at the 93rd Ordinary General Meeting of Shareholders held on June 23,
2021, based on its purpose of enhancing Director awareness of the importance of contributing to improvements in businessperformance and corporate value over the medium to long term.

Revisions to the Director
Remuneration System

The following revisions were made to the Director’s remuneration system, other than those Directors who are Audit &Supervisory Committee members.
• ‘Base remuneration’ reflects an individual’s job responsibilities and individual performance.
• ‘Remuneration for acquiring treasury stock’ is abolished in favor of ‘performance-based stock compensation’.

Process• Remuneration for individual Directors is decided by the Board of Directors based on remuneration criteria resolved at meetings of the Board of Directors each year within the framework of total remuneration determined at the General Meeting of
Shareholders and following discussion among Representative Directors regarding management content and economic conditions as well as an individual’s annual evaluation.
• To enhance objectivity and transparency and ensure the appropriateness of decision-making, the opinions of Independent
Outside Directors and full-time Audit & Supervisory Committee members are heard through their participation in discussions.
In addition, the structure of the remuneration system is reviewed as required by the Board of Directors.

●
●

●

●

●

●

Details of the Director Remuneration System
Position

Director(excluding those who are
Audit & Supervisory
Committee members)●●●

Classification●

Performance-linked
remuneration

According to the year’s businessNo greater than ¥290 million per annum
results, taking into consideration(no greater than ¥30 million per annum for Outside Directors)
quantitative factors such as net
profit and dividends attributable tothe parent’s shareholders

Linked to medium- to long-termbusiness performance
improvement* Independent Director provided in Rule 436-2 of the Tokyo Stock Exchange Securities Listing Regulations

Audit & Supervisory
Committee members

Overview of remuneration system

Base remuneration

Performance-based
stock compensation●

Remuneration principles

Linked to job duties and annual
individual performance evaluations

●
●

●

●

Basic Policy andApproval at the General
Meeting of Shareholders

Base remuneration

Linked to job duties• The maximum cash we contribute is ¥70 million per annum.
• The maximum number of shares to be delivered to Directors,
the proceeds of which will be paid to Directors, will not begreater than 240,000 shares per annum* The initial eligible period is three fiscal years from the year ending March 31,
2022, to the year ending March 31, 2024

No greater than ¥60 million per annum

Evaluation of the Effectiveness of the Board of Directors
Chiyoda evaluates the effectiveness of the Board of Directors annually. Improvements and issues are discussed at meetings ofthe Board of Directors to further enhance its effectiveness.
Initiatives to Enhance the Effectiveness of the Board of Directors in fiscal 2021

64

Process• A questionnaire on the effectiveness of the Board of Directors was provided annually to all Directors (including those who are
Audit & Supervisory Committee members)• Improvements in previous evaluations were confirmed• Opinions on the current fiscal year’s evaluation and on further improvements to the Board’s effectiveness were exchanged• Results and issues going forward were confirmed by the Board of Directors

Questionnaires

Main Items
1. Composition of the Board of Directors
2. Frequency and length of meetings of the Board of Directors
3. Matters for resolution by the Board of Directors and relevant materials
4. Agenda and management of meetings

Evaluation of theeffectiveness andinitiatives going forward<Response of Board of Directors in Fiscal 2021, to Results of Effectiveness Evaluation Conducted in Fiscal 2020>
The Board of Directors strengthened and implemented guidance and supervision to the executive side with regards to projects
under way and future projects, building a structure better able to resolve issues, while prioritizing the supervision of the execution of the revitalization plan that was updated in May 2021. The executive side continued to provide appropriate information at
an appropriate time to the Directors, facilitating the smooth decision-making and more fruitful discussions of the Board of
Directors.
<Evaluation in Fiscal 2021>
While being appropriately managed by the Chair, the Board of Directors continued to provide broad guidance to the executive
side, which provided pertinent information about key projects in a timely manner, as each director fulfilled their roles and duties.
Proactive discussions were held with opinions voiced by inside and outside directors who have abundant knowledge in
response to regular reports about initiatives in new fields and the state of projects underway.
<Initiatives in Fiscal 2022>
Chiyoda still aims to reform its business portfolio based on its updated revitalization plan, and build a more stable earnings
structure. The Company is delving deeper into discussions about issues related to sustainability management as the movement
toward a carbon-free society gains momentum. While enhancing the information shared with directors, the Company aims toinvigorate discussions by the Board of Directors with an eye on increasing corporate value.

Chiyoda Corporation CHIYODA REPORT 2022

65

FOUNDATION UNDERPINNING SUSTAINABLE GROWTH
FOUNDATION UNDERPINNING SUSTAINABLE GROWTH

Corporate GovernanceDirectors and Audit & Supervisory Committee Members

Masakazu Sakakida
Representative Director,
Chairman of the Board,
President & CEO,CSO*1 and CWO*2

Fuminori Hasegawa
Senior Executive
Vice President,
Executive Officer

Koji Tarutani
Representative Director,
Executive Vice President,
CFO*5 & CCO*6
Division Director,
Finance & Accounting
Division

Masao Ishikawa
Director

1981:	Joined Mitsubishi Corporation(Heavy Machinery Department)
2001:	Mitsubishi International Corporation,
New York, USA
2006:	General Manager, Plant & Heavy Machinery Unit,
Plant & Industrial Machinery Business Division of
Mitsubishi Corporation
2012:	General Manager for Group Strategy Planning,
Machinery Group CEO*3 Office, and Group CIO*4,
Machinery Group of Mitsubishi Corporation
2013:	Senior Vice President, Chairman & Managing
Director, Mitsubishi Corporation India Private Ltd.,and Deputy Regional CEO, Asia & Oceania(Southwest Asia) (New Delhi)

2017:	Executive Vice President, Corporate Functional
Officer, Chief Compliance Officer and Officer,
Emergency Crisis Management Headquarters of
Mitsubishi Corporation
2021:	Director of Mitsubishi Corporation
Representative Director, Chairman of the Board,
CEO and CWO of the Company
2022:	Representative Officer, Chairman, President,
CSO and CWO of the Company (current position)

1982: Joined Mitsubishi Corporation
1998: Operation Management Dept. of the Company
2008:	Group Controller, Energy Business Group of
Mitsubishi Corporation
2012:	General Manager, Energy Business Group CEO
Office of Mitsubishi Corporation
2013:	Division COO, Petroleum Business Division,
Energy Business Group of Mitsubishi Corporation
2014:	Senior Vice President, Division COO, Petroleum
Business Division, Energy Business Group of
Mitsubishi Corporation
2015:	Senior Vice President, Division COO, Petroleum
Business Division, Energy Business Group of
Mitsubishi Corporation, and Chairman & Directorof Mitsubishi Corporation Energy Co., Ltd.

2017:	Senior Vice President, Division COO, Energy
Resources Division (Asia Pacific), Energy
Business Group of Mitsubishi Corporation
2019:	Executive Vice President, CRO and Division
Director, Strategy & Risk Integration Division of
the Company
2021:	Executive Vice President, and Division Director ofStrategy & Risk Integration Division of theCompany2022:	Senior Executive Vice President, Head of
Strategy & Risk Integration, HR & DX, andDivision Director of Strategy & Risk Integration
Division of the Company (current position)

1986: Joined The Mitsubishi Bank, Ltd.
2012:	Business Risk Management Division andGeneral Manager (Special Assignment) of
Global Compliance Division of The Bank ofTokyo-Mitsubishi UFJ, Ltd.
2014:	General Manager of Credit Examination Office ofInternal Audit Division of The Bank of TokyoMitsubishi UFJ, Ltd.
2016:	General Manager (Special Assignment) of Internal
Audit Division of Mitsubishi UFJ Financial Groupand General Manager of Credit Examination
Office of Internal Audit Division of The Bank ofTokyo-Mitsubishi UFJ, Ltd.
General Manager of Legal Division of Mitsubishi
UFJ Financial Group and General Manager ofLegal Division of The Bank of Tokyo-Mitsubishi
UFJ, Ltd.
2019:	Representative Director, Executive Vice President,
CFO and Division Director of Finance &Accounting Division of the Company
2022:	Representative Director, Executive Vice President,
CFO and CCO, Head of Finance & Accounting,
Legal & General Affairs, and Division Director of
Finance & Accounting Division of the Company(current position)

Director

Ryo Matsukawa
Outside Director*

7

Outside Director*7

Shingo Torii
Full-Time Audit andSupervisory Committee
MemberMika Narahashi
Outside Audit &Supervisory Committee
Member*7

1980: Joined the Company
2011:	General Manager, Gas LNG Process Engineering
Department of the Company
2013:	Vice President and Deputy Division Director,
Technology & Engineering Division of theCompany
2015:	Senior Vice President and Division Director,
Technology & Engineering Division of theCompany
2020:	Executive Vice President and Division Director,
Technology & Engineering Division of theCompany2021:	Senior Advisor of the Company
Director of the Company (current position)

1989: Joined Mitsubishi Corporation
2012:	General Manager, Smart Community Business
Integration Unit, Environment & Infrastructure
Business Division of Mitsubishi Corporation
2013:	General Manager, Environment Energy Business
Unit, Environment & Infrastructure Business
Division of Mitsubishi Corporation
2015: Director, Lithium Energy Japan
2018:	Executive Vice President, Lithium Energy Japan

Koji Ota

Yutaka Kunigo

1979:	Joined Tokyo Shibaura Electric Co., Ltd(currently Toshiba Corporation)
2007:	General Manager, Technology Management Div.,
Toshiba Corporation Power Systems Company
2011:	General Manager, Fuchu Complex,
Toshiba Corporation
2013:	Executive Quality Leader, Toshiba Corporation
Power Systems Company
2014:	Representative Director, President and Chief
Executive Officer, Toshiba Plant Systems &Services Corporation
2021:	Outside Director of the Company(current position)

Hisashi Ito
Outside Audit &Supervisory Committee
Member*7

2019:	Senior Vice President, Division COO, Plant
Engineering Division of Mitsubishi Corporation
2022:	Executive Vice President, Group CEO,
Industrial Infrastructure Group, Division COO,
Plant Engineering Div. of Mitsubishi Corporation(current position)
Director of the Company (current position)

1977: Joined Tokyo Gas Co., Ltd.
2010:	Managing Executive Officer, Chief Executive ofResources Business Division of Tokyo Gas
Co., Ltd.
2013:	Director, Managing Executive Officer, Chief
Executive of Energy Production Division ofTokyo Gas Co., Ltd.
2014:	Representative Director, Vice President, Executive
Officer, Chief Executive of Energy Solution
Division of Tokyo Gas Co., Ltd.
2015:	Representative Director, Vice President, Executive
Officer responsible for Power Business Planning
Department, Business Renovation Project
Department, and Sales Innovation Project
Department of Tokyo Gas Co., Ltd.

2016:	Representative Director, Vice President,
Executive Officer responsible for Power BusinessControl Department, Chief Executive of Energy
Production Division responsible for PowerBusiness Planning Department of Tokyo Gas
Co., Ltd.
2017:	Director and Chairman, Tokyo Gas Engineering
Solutions Corporation
2020:	Outside Director, Nippon Paper Industries
Co., Ltd. (current position)
2022:	Outside Director, Ise Chemicals Corporation(current position)
Outside Director of the Company(current position)

1990: Joined Mitsubishi Corporation
2012:	General Manager, Corporate Accounting
Department, Metal One Corporation
2016:	General Manager, Administration Dept.,
Chemicals Group, Mitsubishi Corporation
2019:	General Manager, Industrial Materials andPetroleum & Chemicals Administration Dept.,
Mitsubishi Corporation
2021:	Senior Advisor of the Company Full-Time Audit
and Supervisory Committee Member of theCompany (current position)

2000: Registered as a lawyer (Tokyo Bar Association)
2003: Joined Anderson Mori & Tomotsune
2007:	Joined Investment Banking Division of Deutsche
Securities Inc.
2009:	Joined American Life Insurance Company(currently MetLife, Inc.) Senior Manager of Legal
Affairs Department of American Life Insurance
Company

2015:	Joined AIG American Home Assurance
Company, Ltd. Head of Legal Affairs Office of
AIG American Home Assurance Company, Ltd.
2017:	Senior Partner of TH Law Office(current position)
2018:	Director of the Company (Audit & Supervisory
Committee Member) (current position)

1983:	Joined The Mitsubishi Trust and Banking
Corporation
2005:	General Manager, Money Market Activities
Division, Mitsubishi Trust and Banking
Corporation
2010:	General Manager, London Branch,
Mitsubishi UFJ Trust and Banking Corporation
Executive Officer, Mitsubishi UFJ Trust andBanking Corporation
2012:	Managing Executive Officer, Mitsubishi UFJ Trustand Banking Corporation
2013:	Managing Director, Mitsubishi UFJ Trust andBanking Corporation

2015:	Senior Managing Director (Representative
Director) and CIO, Mitsubishi UFJ Trust andBanking Corporation
2016:	Director, Senior Managing Executive Officer
and CIO
2017:	Representative Director, President,
The Master Trust Bank of Japan, Ltd.
2019:	Representative Director and Chairman,
Mitsubishi UFJ Trust Systems Co., Ltd.
(current position)
2020:	Audit and Supervisory Committee Member of theCompany (current position)*1 Chief Sustainability Officer*3 Chief Executive Officer*5 Chief Financial Officer*2 Chief Wellness Officer*4 Chief Information Officer*6 Chief Compliance Officer*7 Outside Director as stipulated in Article 2,
Item 15 of the Companies Act

Executive Officers
President

Senior Vice President

Vice President

Masakazu Sakakida

Setsuo Iuchi

Munetaka Horiguchi

Keio Naruko(CSO & CWO)

Hideo Matsui

Masaki Kumagai

Masami Tamura

Senior Executive Vice President

Toshiya Momose(CHRO*8 & CDO*9)

Katsuhiko Jogan

Fuminori Hasegawa

Norimasa Matsuoka
Tetsuya Konno

Executive Vice President

Koji Tarutani(CFO & CCO)

Hidehiko Suzuki

Toshiaki Saito
Takayuki Naito
Naoki Kobayashi
Taku Ito

Hiroyuki Shimizu*8 Chief Human Resources Officer*9 Chief Digital Officer

66

Chiyoda Corporation CHIYODA REPORT 2022

67

FOUNDATION UNDERPINNING SUSTAINABLE GROWTH

Risk Management

Chiyoda considers compliance a core value, based on our conviction that the trust of society and its customers underpin a company’s business activities. We proactively enhance compliance education and training programs to prevent unlawful and fraudulent acts and human right infringements, while continuing to reinforce ourcompliance systems to ensure their early detection, a swift response, and measures to prevent reoccurrence.
We are unwavering in our commitment to further strengthening compliance throughout the Group.

The Group’s Compliance System
Organizational Structure
The CCO, appointed by the Board of Directors, is responsible for overseeing compliance in all divisions. Compliance Officers
in each division are responsible for compliance policies and implementing compliance measures in their respective division.
Group company representatives serve as the Group Company Compliance Officer and are responsible for implementing compliance measures in their company.

Integration and Strengthening of Project Risk Management
 he key to executing and completing a project according to plan is risk management. At the Chiyoda Group, the Strategy &TRisk Integration Division assumes the role of a control tower, assisting in strategies and managing risks throughout eachstage of a project, thereby centrally managing project risks from the estimation phase prior to the receiving of orders
through to the execution, completion, and delivery phases. The Strategy & Risk Integration Division is also tasked with providing management support.
Under this integrated risk management system, we will continue to enhance the precision of our project management interms of cost, scheduling, and quality by making more effective use of digital technology and improving data management.
In so doing, we will ensure extensive risk management while continuing to aim for even higher standards in this regard.
Project Risk Management Structure

Relevant
Divisions

Strategy & Risk Integration Division

Code of Conduct(Integrated risk management)

The ‘Chiyoda Group Code of Conduct and Conduct Guidelines’ ensure our business activities conform to national and international laws and regulations, company rules, and social ethics. All officers and employees are expected to comply with, andbase their decisions and actions upon, the standards set within the code and guidelines.

Management Support

The Chiyoda Group advances compliance by implementing multi-faceted initiatives, to enhance executive and employee compliance awareness and knowledge. We have added the following new initiatives to supplement previous ones.
Key Initiatives

Details

e-learning

Conducting annual compliance-related e-learning for all Group employees

Email newsletter

Distributing monthly compliance newsletters by email, containing news, topics, and trivia, to all
employees in Japan

Harassment prevention NEW

Conducting Group employee harassment surveys in domestic Group companies and conducting
emotion management seminars

Revision to Basic Policy on Human Rights NEW

Assessing business risks that could negatively impact human rights, revising Basic Policy on Human
Rights, and conducting business and human rights seminars for all Group employees	Develop an execution structure for projects
upon securing their orders	Implement strategic human resource
management

Frontier Business
Align
Cooperate

	Monitor, analyze, evaluate, formulate
measures, and visualize the profitability
and development process of ongoingprojects

	Promptly identify areas requiring improvement through joint efforts with relevant
divisions	Develop a framework that facilitates thetimely reporting of areas in need of
improvement to management

HR & DX
Business
Development
Technology &Engineering	Establish best practices and utilize lessons
learned from completed projects

Construction
General Affairs
Finance &Accounting

Refined Data Management

Project Risk Management Flow

Internal Whistleblowing System
We have implemented a whistleblowing system within
the Group and have established external hotlines inGroup companies (to lawyers, external specialists) as‘points of contact’ to report unlawful and fraudulent
acts, enabling early resolution and preventing recurrence. We have also distributed ‘internal whistleblowing cards’ to raise awareness of the internal
whistleblowing system and inform officers andemployees of the ‘points of contact’ inside and outside the Group.

Global Environment& Green Energy
Project Operations

	Assess projects from take-up and identify,
analyze, evaluate, and formulate measures
for risk management at the proposal submission stage	Determine order-securing strategies supported by financial and human resource
capabilities

Initiatives to Enhance Compliance Awareness and Knowledge

Energy Project
Operations

Project Risk Management

	Reinforce business foundation

		

FOUNDATION UNDERPINNING SUSTAINABLE GROWTH

Compliance

Consultations Provided and Whistleblowing Reports Received
in Fiscal 2021
Category

Number of consultations provided
and whistleblowing reports received
in fiscal year 2021

Legal violations and bribery(including cartel and other concerns)

1

Violation of internal rules

13Power harassment(including consultations, canceled items, andother concerns)

37

Key Project-Related Risks
Technology risk

7

Workplace environment

20

Other consultations

30

Total

108

Countermeasures

Monitoring(at the time of estimation andbefore securing orders)(from execution tocompletion)

Step 1

Step 2Prevent

Labor shortage and wage risk

2

Geopolitical risk

Regulatory risk
Disaster risk
Risk of diminished confidence among
business partners, vendors, andsubcontractors

Policy1

Material procurement andprice escalation risk

Foreign exchange risk

Sexual harassment and pregnancy discrimination

Risk Profiling(at the time of estimation andbefore securing orders)

Anticipate
and identify
risk items

Quantitatively
and qualitatively assess
risk items

Transfer3
Mitigate

4

Accept(cost effects)

Key measures• Modify to contract terms• Share risks with customers and/or partners• Partnering• Decentralize vendors andsubcontractors• Minimize local construction (modular construction
method, etc.)• Hedge risks throughinsurance• Utilize foreign exchange
contracts• Allocate reserve funds

Assess risks andmonitor the status ofcontrol measuresregularly from theexecution ofprojects to theircompletion anddelivery phase, andpractice the PDCA
cycle systematically

Please refer to the following for Group compliance details.

https://www.chiyodacorp.com/en/csr/risk-management/compliance/initiatives.html

68

Chiyoda Corporation CHIYODA REPORT 2022

69

FOUNDATION UNDERPINNING SUSTAINABLE GROWTH
FOUNDATION UNDERPINNING SUSTAINABLE GROWTH

Safety Management

Step Forward!

Natural instinct

Construction and safety-related issues

All Chiyoda Group employees regularly and responsibly engage in educational training courses based on our Safety, Quality and Environmental(SQE) policy, including our unique behavior-based safety assurance program, ‘C-Safe’. We continuously strive to embed a sustainable culture ofsafety throughout our organization by tirelessly enhancing our employee
SQE knowledge and skills through such training and promoting SQE activities through collective Groupwide efforts.
In the 2021 fiscal year, we advanced a step closer to achieving oursafety targets by continuously improving our safety performance, meeting
Total Recordable Incident Rate (TRIR) targets for a third consecutive year
on overseas projects and reducing the figure by more than half comparedto the previous year on domestic projects. Initiatives to improve our safety
culture are delivering results and increasing awareness of SQE among
employees.
In the 2022 fiscal year, we launched an initiative called ‘Step Forward!’
to improve outcomes with more effective communication based on mutual
understanding and respect, while raising awareness of SQE even further.
Through ‘Step Forward!’, we empower individuals with the courage to‘step-up’, stimulating human resource and organizational development.

Reactive stage:	Responsibility for safety is not assumed and accidents are perceived as something that will
eventually occur
Dependent stage:
Safety is expected as long as rules are followed
Independent stage:
Responsibility for safety is assumed and the actions of each individual are believed to makea difference
Interdependent stage: Accept responsibility and be proactive for realizing a safety culture is assumed by the team
Thinking “no accidents is an achievable goal”

Directions of supervisors

Individual-centeredapproach

Respond only toaccidents that haveoccurred

Reactive stage

Team-centeredapproach

Adhere only to laws
and regulations and the
directions of supervisors

Dependent stage

Act voluntarily basedon one’s knowledge
and experience

Act with consideration for
one’s peers

Independent stage

Interdependent stage

Source: DuPont Bradley Curve™

		

Please refer to the following website for details on our C-Safe Program.

https://www.chiyodacorp.com/en/csr/safety/c-safe.html

Safety Performance
The graph on the right illustrates the Chiyoda Group’s safety performance over the five calendar years up to 2021. LTIR*1 is anindicator of past performance. TRIR*2 is a forward-looking indicator that sounds the alarm about the risk of injuries that are
more serious than accidents requiring time off from work. Although both indicators in the 2021 fiscal year were less than 50%of the 2020 level, we will continue striving to improve these results even further. The TRIR disclosed by the Chiyoda Group
includes occupational illness, such as heat stroke, and does not therefore compare with other ‘third party’ results which do
not include such results.
The Chiyoda Group believes that ‘every incident is preTRIR / LTIR at Overseas and Domestic Sites
ventable’ as we relentlessly pursue zero injuries in the work0.3
place and strenuously instill a ‘learner mindset’ on all our
TRIR
0.22
construction sites.
0.27
0.27
0.20

C-Safe Program
In the 2020 fiscal year, the Chiyoda Group adopted the DuPont
Sustainable Solutions Bradley CurveTM, identifying four stages of safety culture maturity, with a view to assessing safety on its construction sites and,by combining this approach with our C-Safe Program, we are currently
advancing from the independent stage to the interdependent stage.
Encouraging results from safety awareness surveys conducted on construction sites since the 2019 fiscal year demonstrate how the ‘Better
Together’ concept, realized through collective effort and continuous coaching and support, is positively impacting employee health and safety. We
will continue with this initiative to realize our injury and incident free
workplace objectives in our untiring endeavors to ensure peak safety
performance.
We will continue educating and training employees in the 2022 fiscal
year, using knowledge and experience gained through the construction of
successful projects to ‘continuously improve’ our safety performance. By
demonstrating safety leadership based on our ‘One Team’ approach,embracing change and creating workplaces that cultivate the skills geared
to such change, we will continue to improve our business performance
towards further growth.
Companywide Health, Safety and Environment (HSE) targets for the2022 fiscal year emphasize the two key phrases “Leadership” and “OneTeam” as areas of ‘continuous improvement’.

70

Chiyoda Corporation CHIYODA REPORT 2022

0.2

*1	Lost Time Incident Rate = Number of lost-time injuries (including fatalities) / Number ofhours worked x 200,000*2	Total Recordable Incident & Illness Rate (for injuries requiring medical treatment) =Number of injuries* / Number of hours worked x 200,000

FY2022 HSE Objectives
Drive C-Safe together
to make us “One Team”* Including fatalities, lost worktime, change in employment regulations, and incidents
medical support, including heat stroke

Leadershipand ensured PDCA Cycle!

		

0.10
0.1

0

LTIR
0.01

0.02

0.01

2017

2018

2019

0.04
2020

0.01
2021

Please visit the website below for further safety information.

https://www.chiyodacorp.com/en/csr/safety/safety-performance.html
CUC/オフィスサービスグループ承認済
掲載期限: 2023年3月31日まで

71

DATA SECTIONDATA SECTIONDATA SECTION
In this section, we provide key data on the Chiyoda Group,

CONTENTS
74 Key ESG Data
76 Eleven-Year Summary
78 Corporate Information

financial results over the past 11 years and ESG initiatives.

72

Chiyoda Corporation CHIYODA REPORT 2022

73

DATA SECTIONDATA SECTIONKey ESG Data

Environmental Initiatives

Social Initiatives

The Chiyoda Group strives to realize its corporate philosophy of‘Energy and Environment in Harmony’ and further contribute to thesustainable development of society through its business activities.

The Chiyoda Group contributes to local communities through its business, suchas human resource development, human rights and labor initiatives, and social
contributions. We also cultivate a corporate culture that embraces diversity andindividuality, as well as the uniqueness of each director and employee, andboosts employee morale through our respect for individuals and their families.

KPI

Unit

2018/3

2019/32020/32021/3

KPI

2022/3Unit

2018/3

2019/32020/32021/32022/3

Employee Status

Environmental Data of Domestic Construction Sites
Industrial waste disposal quantity (excluding sludge)

Tons

12,242

17,13822,223

13,54916,577

Average years of service

Years

13.2

12.3

12.7

14.2

14.2

Final landfill disposal quantity (excluding sludge and incinerated ash)

Tons

614

1,059

1,464

1,432

828

Average age of employees

Years

41.6

41.0

41.3

41.2

41.4

Tons-CO2

901

5,665

4,642

5,362

5,789

Turnover rate excluding retirement

%

4.5

2.5

4.7

2.9

3.6

%

91.5

76.8

92.8

89.7

95.0

Employee Diversity

Electronic manifest penetration rate

%

93.2

94.6

90.8

90.2

99.0

Ratio of female employees among new recruits

%

33

25

27

31

21

Adoption of environmental proposals

Cases

197

347

236

237

132

Number of female employees among new recruits

Persons

19

12

14

11

7

%

–

25.0

16.1

36.7

59.1

CO2 emissions
Industrial waste recycling rate (excluding sludge)

Environmental Data of Overseas Construction Sites (Released from March 2020)

Ratio of mid-career employment (Released from March 2019)

Industrial waste disposal quantity

Tons

–

–

6,868

4,097

3,841

Ratio of women among all employees

%

19

16

16

16

17

Final landfill disposal quantity (excluding recyclable resources and incinerated ash)

Tons

–

–

4,624

3,075

1,976

Average years of service of female employees

Years

7.6

8.1

9.0

9.4

9.6

Number of women in management positions

Persons

24

25

28

28

54

Ratio of women in management positions

%

3.2

3.5

3.8

3.7

6.3

CO2 emissions
Industrial waste recycling rate
Adoption of environmental proposals

Tons-CO2––

56,97086,81751,703

%

–

–

17.0

3.5

5.6

Cases

–

–

111

150

98

Environmental Data of Chiyoda Group Company Offices
Power consumption

1,000 kWh

11,12910,331

9,313

8,294

8,426

Energy consumption

kl

3,430

3,295

3,018

2,678

2,754

CO2 emissions

Tons-CO2

6,367

6,083

5,685

4,647

4,603

Chilled water consumption

1,000 m3

15.5

17.5

15.2

9.8

11.3

GJ

5,168

4,541

4,633

4,849

5,428

Cold water consumption

GJ

11,306

14,201

13,785

10,865

10,938Waste disposal volume

Tons

233

241

281

214

147

Waste recycling rate

%

93.8

95.4

96.5

92.9

89.7

Printing paper consumed

Tons

66

80

70

43

25

Steam consumption

Ratio of employment of persons with disabilities
Number of non-Japanese employees

Governance Initiatives

%

1.5

1.6

1.7

1.7

1.6

Persons

71

63

73

77

71
50

Employee Support
Number of employees taking childcare leave

Persons

27

26

28

43

Number of employees taking sick/injured childcare leave

Persons

7

11

23

18

4

Number of employees taking nursing care leave

Persons

9

9

10

10

5

Number of employees taking temporary retirement for nursing care

Persons

0

0

1

0

0

Number of employees working reduced hours for childcare

Persons

14

12

27

24

31

Number of employees dispatched for on-site training/on-site instruction

Persons

54

42

47

24

25

Volunteer Activities
Number of employees participating in reconstruction assistance

Persons

54

53

9

0

0

Number of employees participating in cleanup activities (around Chiyoda Global
Headquarters and Koyasu Office)

Persons

157

110

120

25

8

Donation of vaccines through the collection of plastic bottle caps under ECOCAP
Program

Vaccines

231

292

278

207

184

Donation of school lunches through TABLE FOR TWO

Lunches

1,581

1,561

1,557

1,386

1,288

The Chiyoda Group is dedicated to transparency and stability in its
operations in accordance with the highest ethical standards.

KPI

Unit

2018/3

2019/32020/32021/32022/3

Number of employees receiving compliance training (new recruits, midcareer hires,and executives and associate executives)

Persons

150

112

114

114

83

Number of employees receiving compliance training (overseas assignment, sitemanagers at field offices, export control, and bribery prevention)

Persons

314

168

248

422

1,254

Actions for Compliance

Number of employees attending compliance seminars held by external instructors

Persons

662

172

711

2,021

1,235

Number of employees receiving compliance training via e-learning

Persons

5,213

4,669

5,704

5,189

5,179

Number of reports submitted under the Compliance Consultation andWhistleblowing System

Cases

25

36

98

93

108

Times

2

2

0

1

0

Cases

0

0

0

0

0

Persons

4

5

5

4

4

Initiatives for Business Continuity
Business continuity plan (BCP) training
Actions for Information Security
Number of serious information security-related incidents
Governance-Related Data
Number of outside directors

74

Chiyoda Corporation CHIYODA REPORT 2022

75

DATA SECTIONDATA SECTION

Eleven-Year Summary
Chiyoda Corporation and Consolidated Subsidiaries

Millions of yen (excluding key ratios)

2012/3

2013/3

2014/3

2015/3

2016/32017/3

2018/3

2019/32020/32021/32022/3

Revenue

254,675

398,918

446,147

480,979

611,548603,745

510,873

341,952

385,925

315,393311,115Gross Profit (Loss)

38,891

42,51541,46245,651

41,52038,2238,618(181,148)

42,82320,061

22,794

SG&A Expenses

14,693

17,402

20,38324,18525,50522,543

20,94818,647

16,033

13,046

12,249Operating Income (Loss)

24,197

25,11321,07921,466

16,015

15,680(12,330)(199,795)

26,7897,015

10,545

Ordinary Income (Loss)

23,79325,51822,837

22,271

16,205(3,080)(10,100)(192,998)

18,644

8,462

11,431Net Income (Loss) Attributable to Owners of the Parent

14,364

16,077

13,447

11,0293,375(41,116)6,445(214,948)

12,177

7,993(12,629)

Current Assets

320,478

383,206

409,096444,578455,030

425,244374,470

326,929

360,387

305,891

372,682

Current Liabilities

193,687

230,431

261,679

294,339

311,106

301,182

247,847

392,505

319,878

244,657

350,675

Total Assets

365,795

435,379475,288515,839528,219

461,331420,337

352,341

385,051

329,583

395,396

Interest-Bearing Debt

10,198

10,22011,305

11,01010,348

10,211

10,00015,98935,87145,74745,621Net Assets

168,737

189,356

198,031

208,405

202,128

157,125

159,418(59,154)

24,94336,747

15,761

Shareholders’ Equity

168,120

188,386

196,411

206,395

200,166

155,339

157,557(60,114)

24,42336,39915,654

Cash Flows from Operating Activities

55,61514,147(17,177)(24,145)

55,526(4,375)(34,115)(37,941)(32,217)(20,806)(25,591)

Cash Flows from Investing Activities(9,140)(5,257)(16,796)(5,444)(26,750)

10,433(1,428)778(7,828)(2,250)(3,787)

Cash Flows from Financing Activities(2,899)(4,432)(5,249)(4,569)(3,942)(2,693)(1,468)4,020

89,2009,478(4,197)

173,769

180,229

145,303113,246

136,919

138,889

101,767

68,306

115,932

98,73869,099Gross Profit (Loss) Margin (%)

15.3

10.7

9.3

9.5

6.8

6.3

1.7

(53.0)

11.1

6.4

7.3

Return on Assets (ROA) (%)

6.6

6.4

5.0

4.5

3.1

(0.6)

(2.3)

(50.0)

5.1

2.4

3.2

Return on Equity (ROE) (%)

8.9

9.0

7.0

5.5

1.7

(23.1)

4.1(441.2)(68.2)

26.3(48.5)

Shareholders’ Equity Ratio (%)

46.0

43.3

41.3

40.0

37.9

33.7

37.5

(17.1)

6.3

11.0

4.0

Current Ratio (%)

165.5

166.3

156.3

151.0

146.3

141.2

153.0

83.3

112.7

125.0

106.3

Debt Equity Ratio (DER*1) (Times)

0.06

0.05

0.06

0.05

0.05

0.07

0.06

(0.27)

1.47

1.26

2.91

Earnings Per Share (EPS*2) (Yen)  55.44  62.06  51.91  42.58  13.03(158.76)  24.89(830.02)  40.9422.76(56.88)Book-value Per Share (BPS*3) (Yen)648.95727.24758.31796.89772.89599.83608.41(232.13)(182.07)(143.94)(218.11)

Dividend Per Common Share (Yen)

17

19

16

13

10

6

7.5

–

–

–

–

Common Dividend Payout Ratio (%)

30.7

30.6

30.8

30.5

76.7

38.7

30.1

–

–

–

–

–

20.78

–

5.2

21.0

(8.3)

Results for the Year

Financial Position at Year-End

Cash Flows

Cash and Cash Equivalents, at End of Year
Key Ratios

Dividend Per Type A Preferred Share*4 (Yen)Price Earning Ratio (PER*5) (%)

19.0

16.9

25.6

24.1

63.3

(4.5)

40.3

(0.31)*1 Debt Equity Ratio*2 Earnings Per Share*3 Book-value Per Share*4 Type A Preferred Share was issued in July 2019
*5 Price Earnings Ratio

76

Chiyoda Corporation CHIYODA REPORT 2022

77

DATA SECTIONDATA SECTION

Corporate Information(As of March 31, 2022)

Company Profile

Stock Information

Company Name

Chiyoda Corporation

Fiscal Year

April 1 to March 31 of the following year

Established

January 20, 1948

Ordinary General
Meeting of
Shareholders

June

Paid-In Capital¥15,014 million

Number of Employees

5,061(consolidated and equity-method affiliates)

Business Activities

Integrated engineering business

Main Offices

Chiyoda Global Headquarters
Koyasu Office & Research Park

Project Experience

In over 60 countries

Number of Authorized
SharesNumber of Issued andOutstanding Shares

Chiyoda’s Global Network (Major Overseas Subsidiaries and Offices)
Milan Representative OfficeChiyoda Corporation
Netherlands B.V.

Common Stock

1,500,000,000(As of June 23, 2022)

Type A Preferred Shares
Common StockType A Preferred Shares

175,000,000
260,324,529(1 unit = 100 shares)
175,000,000(1 unit = 1 share)

Number of
Shareholders

Common Stock

42,694

Listing of Shares

Tokyo Stock Exchange, Standard Market

Stock Transaction Unit

100 shares

1

Type A Preferred SharesChiyoda & Public Works Co., Ltd.

Abu Dhabi Office
The Netherlands
Italy
Chiyoda Petrostar Ltd.
Saudi Arabia

China
India

Qatar UAE
Philippines
Middle East Headquarters
Myanmar
Doha OfficeChiyoda Almana
Malaysia
Singapore
Engineering LLC
L&T-Chiyoda Limited
Indonesia

PT. Chiyoda International Indonesia

Number of
SharesRatio of
Owned
Shares(Thousands Owned (%)
of Shares)

86,931

33.39

MUFG Bank, Ltd.

9,033

3.47

Individuals and others

Other corporations

40.3%

Chiyoda Malaysia Sdn. Bhd.

37.7%

Major Subsidiaries and Affiliated Companies
Number of Issued
and Outstanding
Shares(Common Stock)

Engineering 
Chiyoda Kosho Co., Ltd.

Services: Design and construction for pharmaceutical facilities

https://www.cks-ykh.co.jp/

https://www.cta.chiyoda.co.jp/en_corporate/

5,226

2.00

Custody Bank of Japan, Ltd.
(Trust Account)

4,338

1.66

Chiyoda System Technologies Corporation

Chiyoda Employee Shareholding Association

4,091

1.57

	Services: Engineering, procurement, construction and maintenance ofelectrical and instrumentation, and of social infrastructures.
Supplying spare part and materials.

The Mitsubishi UFJ Trust & Banking Corp.

3,874

1.48

GOVERNMENT OF NORWAY

3,059

1.17

Meiji Yasuda Life Insurance Company

2,265

0.87

SSBTC CLIENT OMNIBUS ACCOUNT

2,222

Chiyoda Kyoeikai

1,960

0.85
0.75

260,324,529
Financial
institutions

Securities
companies

1.8%

Foreign investors

10.0%

10.3%

http://www.cst.chiyoda.co.jp/english/

Digital 
TIS Chiyoda Systems Inc.
	Services: Consulting, development, and operation for integrated
IT systems

https://www.tc-systems.co.jp/english/

Chiyoda U-Tech Co., Ltd.

2. Type A Preferred Shares
Number of
SharesRatio of
Owned
Shares(Thousands Owned (%)
of Shares)

175,000100

	Services: Technical consulting of energy and environment, staffing ofengineers, and outsourcing services

Services: Development and sales of “PlantStreamTM”

https://plantstream3d.com/

Arrow Business Consulting Corporation
Services: Consulting for finance and accounting

https://www.utc-yokohama.com/english/

Inquiries
Chiyoda Corporation
IR, PR & Sustainability Advanced Section, Corporate Services Department
Minatomirai Grand Central Tower 4-6-2, Minatomirai, Nishi-ku, Yokohama 220-8765, Japan

		 Inquiries

	https://www.chiyodacorp.com/en/contact/index.php

Chiyoda Corporation CHIYODA REPORT 2022

PlantStream Inc.

Business Support Note: Shareholding ratio is calculated exclusive of treasury stock.

78

Chiyoda TechnoAce Co., Ltd.

Services: Design, construction and maintenance for domestic projects

The Master Trust Bank of Japan, Ltd.
(Trust Account)

Mitsubishi Corporation

Chiyoda Oceania Pty. Ltd.

Chiyoda Human Resources International (Pte.) Limited

Mitsubishi Corp.

Shareholder

USABeijing Office
Chiyoda Corporation (Shanghai)Chiyoda Philippines Corporation

Breakdown of Shareholders

1. Common Stock (10 Largest Shareholders)Shareholder

 hiyoda International
C
CorporationJapan
Chiyoda Global Headquarters

Australia

Major Shareholders

Sales baseEngineering center
Procurement center
Project execution base
Operation support baseChiyoda Corporation joined the UN Global
Compact in 2012, declaring its commitment
to 10 universal principles in the following fourareas: human rights, labor, the environment,
and anti-corruption. Guided also by the spiritof CSR Value, we arepromoting initiatives in each of thesefour areas.

79

Minatomirai Grand Central Tower, 4-6-2, Minatomirai,
Nishi-ku, Yokohama 220-8765, Japan
https://www.chiyodacorp.com/en/

CHIYODA CORPORATION

Chiyoda Global Headquarters

CHIYODA REPORT 2022

Printed in Japan