Business Overview

May 11, 2018

Chiyoda Corporation© Chiyoda Corporation 2018, All Rights Reserved.

Index1. Business Environment
2. FY 2018 Business Development
3. FY 2018 New Orders Forecast
4. Business Topics

23671

1.

Business Environment
 Increasing in natural gas demand centered in Asia. Expecting FID* fornew large-scale LNG projects in the near future Improving crude oil supply and demand balance from collaboration toreduce production and increasing demand in emerging countries
 Continued investment and development in US shale petroleum &petrochemical projects
Energy Business Expanding investments to Renewable Energy business from anincreasingly aware decarbonizing society
 Progress of energy/ electricity storage technology
EnvironmentBusiness Strong Investment in middle-molecule, biotechnology and antibodydrugs

 Promotion of AI, Big Data and IoT in the energy business Rapid evolution and expansion of options of digital technology
DigitalTechnology
Innovation*FID : Final Investment Decision2

2.

FY 2018 Business Development (Energy Business)< Increasing new orders for large-scale overseas projects andpromoting business throughout the value chain >1) Large-scale EPC* projects
LNG/GasPetroleum/Chemical/Metal

Focus on;
 Projects with high viability
 Client’s with whom Chiyoda has ample
experience Positive new markets

Focus on projects where Chiyoda has
technological strength or competition isrelatively limited

USA, MozambiquePapua New Guinea, Qatar, Russia,
Other Countries

USA, Indonesia, Other Countries,
Japan2）Promoting “ Build energy value chain business”
Upstream

Midstream

Downstream

Consumer market• Floater Business(asset holding)• Xodus（cooperation withSubsea7)• Initiate diverse
LNG approach(standardization,small-scale,offshore)• Gas to power(asset holding)• Total initiatives inthe electrical
power field*EPC : Engineering, Procurement and Construction

3

2.

FY 2018 Business Development (Environment Business)< Enhance new energy, environment, energy saving, new materials andlife science businesses>
New energy
新エネルギー

Environment, energy saving,new materials

Responding to expanding
renewable energy market needs

•
•
•
•

Solar power generation
Electricity storage
Bio Mass power generation
Offshore wind power generation• Development of new energymanagement• Hydrogen supply chain(medium to long term)

Expansion of environmentrelated businesses
Progress of new material
technology• Low environmental load
• Development of energy saving
technology• Next generation materials•

Overseas and domestic
business development

Life science

Development of EPC projects
and technology inpharmaceutical and life sciencefield• Middle-molecule/polymers,
regenerative medicine• Biotechnology and antibodydrugs• Continuous flow production
technology•

Expand into advanced
pharmaceutical andmedical fields

4

2.

Business Development (Digital Technology Innovation)< Acceleration of digital strategy (eg: AI) >Companywide digitization

Development of new business models

Accelerate digitization of Chiyoda and improve
EPC performance

Integration of plant engineering technology(eg: advanced analysis and digitalinnovation)

Expansion of partnering Development and provision of plant smart IoT services
 Development and provision of services that combine AI technology
 Development and provision of services centered on plant digital twin5

3.

FY 2018 New Orders Forecast(Billions of Yen)

800
Energy Business

Environment Business

650

150

LNG/GasPetroleum/Chemical/MetalNew energy
Environment/Energy saving/New materials

400250Life science【Reference : Earnings Portfolio Transition】
Average from FY2013 to FY2016(Source: Medium – Term Management Plan: 2017)
Environment
Business 15%

Energy Business 85%

2018 New Order Forecast

Environment
Business 19%

Energy Business 81%

Forecast for 2020
(Source: Medium – Term Management Plan: 2017)

Environment
Business 30%

Energy Business 70%

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4.

Business Topics

Yamal LNG 1st train commenced production
The 1st train was completed in December 2017.
The 2nd and 3rd trains will be completed in 2018 and2019.

Courtesy of JSC Yamal LNG

Award of FEED* Contract for
the North Field Expansion Project, Qatar
The scope of work is the addition of 3 x 7.8 mtpa
LNG megatrains, with associated pre-investment,for Qatar Petroleum. A 4th LNG train can be addedin the future as an option.

Courtesy of Qatargas Operating Company Limited*FEED : Front End Engineering Design74.

Business Topics

Achievements in the Japanese Energy Field
Chiyoda has been successful in our domesticmarket.

Participation in middle-molecule pharmaceuticalmanufacturing facilities
Chiyoda has been awarded an EPC contract fordevelopment of peptide therapeutics, a middlemolecule drug expected to grow in demand
worldwide. Chiyoda also participated as an equity
participant in this project.
Photo from corporate brochure84.

Business Topics

Commencement of construction for a Hydrogen
Supply Chain demonstration ProjectA ground breaking ceremony was held in Brunei inApril 2018 for a project to demonstrate Chiyoda's
SPERA hydrogen technology *1. The world's firstglobal hydrogen supply chain to connect Brunei
and Japan is scheduled to commence in 2020.
Photo by Chiyoda Corporation

Provision of digital technology for
ADNOC LNG*2
Chiyoda's target is to optimize plant operation andmaintenance and production efficiency byproviding digital technology combining our plantengineering technology and state-of-the-art AItechnology.
Courtesy of JETRO*1 SPERA hydrogen technology: Developed by Chiyoda, the technology enables mass storage andtransportation of hydrogen at normal temperature and pressure*2 ADNOC LNG : Abu Dhabi National Oil Company LNG

9

「Mirai Engineering」
A Grand Opportunity
for the Future© Chiyoda Corporation 2018, All Rights Reserved.

Forward-Looking Statements
Any projections included in these materials are based solely on information available at the time this presentation
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.

Please address inquiries to:
IR, PR & CSR Department
TEL +81-45-225-7734
URL https://www.chiyodacorp.com/en/© Chiyoda Corporation 2018, All Rights Reserved.