Business Overview

May 8, 2020
Chiyoda Corporation©©
Chiyoda2019,AllAllRights
RightsReserved.
ChiyodaCorporation
Corporation 2020,Reserved.

1

FY2019 Achievements

2

Major Ongoing Projects

3

Business Environment

4

Corporate Value Enhancement

5

Digital Transformation

6

Redefining Engineering Value

IIIIIIAppendix

1

FY2019 Achievements
Vison toward Revitalization and Growth1.

Progress and improved profitability of ongoing projects
 Improved profitability of Cameron LNG, etc. due to revising contractterms
 Freeport and Cameron LNG in the final stages of completion

2.

Revitalization and growth initiatives
3.

Stringent and comprehensive risk management procedures
Enhanced EPC execution with digital technology
New business aimed at “redefining engineering values”

Strengthen financial base to promote growth strategy© Chiyoda Corporation 2019, All Rights Reserved.

12

Major Ongoing Projects

Project

Freeport LNG

Cameron
LNG

ClientFreeport LNG

Cameron LNG

BP Berau

Gulf Coast
Growth Venture(ExxonMobilSABIC JV)Golden PassProduct(ExxonMobilSABIC JV)Partner

ZachryMcDermott

McDermottSaipem
TripatraKiewitZachryMcDermottStatusTrain 1, 2 & 3:
Commercialoperationcommenced

Train 1 & 2:Commercial
operationcommenced

Scheduledcompletion date
3Q / 2021

Scheduledcompletion date
4Q / 2021

Scheduledcompletion date2025

Completion:
Approx. 80％

Completion:
Approx. 58％

Completion:
Approx. 12%

Construction
ongoing

Modulefabrication,
shipment to U.S .
and construction
on site ongoing

Engineering,procurement
and construction
ongoing

Train3:
Commissioning
work ongoingtowardcommercial
operation© Chiyoda Corporation 2019, All Rights Reserved.

Tangguh
LNG

Texas
Ethylene

Golden Pass
LNG

23

Business Environment
Addressing risks and business opportunities in asignificantly changed business environment

Changes & Opportunities
1.

Global recession due to the outbreak of COVID-19 *2.

Crude oil and gas prices have fallen sharply. Energy supply-demandbalance may fluctuate over the long term

3.

Investment restraints and delays in the promotion of new projects
centered on majors. LNG market moves from growth to maturity

4.

Paradigm shift to a carbon-recycling society as a measure against
global warming

5.

Accelerate Business innovation by digitalization transformation

6.

Increased health awareness and deepening the technology of lifescience*COVID-19: Novel Corona Virus Disease 2019
© Chiyoda Corporation 2019, All Rights Reserved.

3

4Corporate Value Enhancement

Accelerate transformation of 1) business portfolio and 2) profit structure
by responding to changes in the business environment
Business

Initiative for growthEnergy

 Select projects with competitive advantage andhigh degree of realization, and strengthen
activities to secure orders and profit
 Achieve business innovation and strengthen pricecompetitiveness by utilizing digital technology

Globalenvironment Accelerate shift to global environment<Focus areas>
New energy, storage,and pharmaceutical / medicalDigitaltransformation[refer to page 5]

 Launching innovative digital products
 Digital EPC promotion
 Enhancing IT business infrastructure

Redefining
engineering value[refer to page 6]

EPCBusinessNewBusiness/Non-EPC

Talent strategy

 capacity developmentof Internal human resource

Strengthen organization (Frontier Business Div.)
Commercialization of Carbon cycle business /new utility business / life science business

Targeted Business portfolio transformation (around 2030)
 Ratio of EPC business vs Non-EPC business 50%：50%
 Ratio of Energy vs global environment 50%：50%© Chiyoda Corporation 2019, All Rights Reserved.

Rebuild portfolio ofpersonnel allocation[Current][Target]EPC
Approx.
100%

EPC Non50% EPC
50%

 Utilization of external
human resources[Current]

Globalenvironment
26%
Energy74%[Target]Energy50%

GlobalEnvironment
50%

45Digital Transformation

Further acceleration toward business innovation & profit
Initiatives
Launching innovative Digital
ProductsActions
 Combining engineering expertise and AI technology
 Product development to optimized plant operation
 Products launched to the market and the clients under “EFEXIS ™”
brand name Early monetization of proven products-LNG Plant AI Optimizer TM (LNG production efficiency improvement)

Digital EPC promotion(Innovation in EPCCompetitiveness) Improved construction management by Chiyoda AWP* Automation of part of engineering work
 Optimization of construction sites using drones and beacons

Further enhanced IT business
infrastructure JV will start with an IT major with TIS Inc. in October 2020. toevolve IT business infrastructure

Efficiency improved by 20% by
promoting company-wide
digitalization
TARGET 20

 Achieve a 20% improvement in efficiency by promoting
digitization and RPA ** in engineering, procurement, andconstruction and corporate management operations*AWP: Advanced Work Packaging
Process©**RPA:
ChiyodaRobotics
Corporation
2019, AllAutomation
Rights Reserved.

56Redefining Engineering Value

As a distinguished engineering company valued by ourcustomers, industry and society, realize future growth byintegrating pioneering technologies with conventional engineering expertise.
Create non-EPC BusinessBusiness Field➊ Carbon recycling business focusedon Clean-Tech➋ Utility business in an Era ofDecentralization➌ Pharmaceutical & Life-scienceActions
Commercialization of technology that effectivelyutilizes carbon dioxide as a valuable resourceOptimal energy provision service utilizing Chiyoda’schemical engineering and hydrogen technology

 Commercialization of new technology related tocell culture process; key to the development ofregenerative medicine

SPERA* Hydrogen®
 Full-scale commencement of international large-scale hydrogen supply demonstration
 Together with Singaporean companies and Mitsubishi Corporation, aiming to realize asustainable hydrogen economy - The safety of our technology is evaluated Together with Hazer (Australian Company), to develop a hydrogen supply business for local
production and for local consumption
 JV development of hydrogen technology with JXTG Energy to produce CO2-free hydrogen© Chiyoda Corporation 2019, All Rights Reserved.

6AppendixIIIIII

Major Ongoing
ProjectsDigitalTransformation

HydrogenEconomy© Chiyoda Corporation 2019, All Rights Reserved.

I

Major Ongoing Projects

Freeport LNG Plant
Client :Freeport LNG Development, L.P.
Capacity :15mtpa; 3 Trains
Country :U.S.A
Scope :EPC
Progress : Commercial operation commenced
Courtesy of Freeport LNG Development, L.P*

© Chiyoda Corporation 2019, All Rights Reserved.

8IIDigital Transformation

Launching innovative Digital Products

EFEXIS™
 EFEXIS = “Efficiency” + “Expertise”
 Chiyoda’s brand name for innovative digitalproducts integrated “Engineering” and “Digital& AI Technologies”.
 Contributes the optimization and unmanned
operation of industrial facilities.

Digital EPC Promotion
FLACS (Field Labor Safety and Control System) Worker management tool atconstruction sites using digital
IoT technology.
 Accurately capture thenumber of mobilized people
and their work progress at theconstruction site.
 Proven tool installed at ourconstruction site.

© Chiyoda Corporation 2019, All Rights Reserved.

9IIIHydrogen Economy

 Initiatives and collaboration with 5 Singaporean Companies & Mitsubishi* for a hydrogen economy
 Create synergies Mitsubishi and accelerate Chiyoda’s business growth for the future City gas operators(860,000 customers)
 plant to use green Producer & Retailerof piped town gashydrogen in thetown gas

Introduction of Global Port
hydrogen into port
Group**vehicles
 Conversion of port
vehicles to fuel cells
 Vision of Hydrogensmart grid
Hydrogen
supplyinfrastructure Developer (comprehensive development ofindustrial parks, commercial facilities, housing,etc.)
 Supporting development for hydrogen economy inSingapore based on know-how of renewableenergy and technology integration

Towards aa sustainablehydrogen economy
in Singapore

 LNG receiving terminal operators(terminals, hubs, bunkering, etc.)
 Support the conversion to hydrogenenergy by utilizing the port
infrastructure of LNG receiving
terminal operators

Hydrogen
Storageinfrastructure

Bunkering

Hydrogen mixed into
natural gas pipeline- Valuing SPER A Hydrogenhigh safety standards- developing low emissions
strategies

 Multipurpose Port Operator
 Supports acceleration of hydrogen
demand development including
utilization for power generation byutilizing existing infrastructure

SingaporeGovernment*Mitsubishi : Mitsubishi Corporation; Chiyoda’s largest shareholder**Global Port
Group: PSA isAll
theRights
world’ssecond largest port operator© ChiyodaCorporation
2019,Reserved.

10

S ustained Growth and Reinforcement of
Our Reputation for Reliability

Harmony between
Energy and the Environment
Chiyoda Corporation IR, PR & CS R Department https://www.chiyodacorp.com/en/
Forward-Looking Statements: Any projections included in these materials are based solely on information available at the time thispresentation was prepared. It is possible that actual results may vary significantly from the projections due to a number of risk factors
such as economic conditions. The results projected here should not be construed in any way as being guaranteed by the Company.
Investor are recommended not to depend solely on these projections for making investment decisions.

© Chiyoda Corporation 2020, All Rights Reserved.