Supplementary Materials
Financial Results for the 3rd Quarterof Fiscal Year Ending March 31, 2017
“Non-operating Expense and Extraordinary Loss”“Revisions to the Forecast of Consolidated Results”

February 9, 2017
Chiyoda Corporation© Chiyoda Corporation 2017, All Rights Reserved.

1. Announcement on Revisions
 1) Non-operating Expense and Extraordinary Loss
 Non-operating Expense

13.0 billion JPY→ valuation of ECS*1 shares (loss of equity) Extraordinary Loss

23.8 billion JPY→ loan and other related expenses

 2) Revisions to the Forecast of Consolidated Results

Revisions to the full year consolidated financial forecasts
For the FY ending March 31, 2017

Initial Forecast
as of May 2016

MillionJPY

Revised Forecasts
as of Feb 9, 2017

Revenue

550,000

610,000

Operating income

18,00018,000Ordinary income

14,0000Profit attributable to owners of parent

5,000(36,000)

Annual Dividend per share*2

6 JPY

6 JPY

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*1 “ECS”: EMAS CHIYODA Subsea Ltd.
* 2 Annual dividend remains as announced in May 2016

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2. Business Review Expansion into Offshore & Upstream Business Field July 2013：

Capital alliance with XODUS Group (Holdings) Limited

 March 2016： Chiyoda and EZRA (*1) started Joint Venture of EMAS CHIYODA Subsea
 As of today： ECS operation by EZRA 40%, Chiyoda 35% NYK (*2) 25%

 ECS Operation Status
 Since April 2016:

Restructuring the corporate management scheme
Assignment of Staff Chiyoda (incl. Management)

 Since Nov. 2016:

Review of Business Operation Plan
Offshore & Subsea market recovery takes longer than expected
Corporate financial constraints cashflow sensitivity

 Investigation of the causes of the financial loss Prolonged tumble in oil price caused delays in capital investments by the clients
 Deterioration in vessel operating ratio and fierce market competition

Strategy for future O&U Business Field
 Reviewing restructuring options of ECS while keeping ongoing operational responsibilities
 Unchanged prospect for growth potential in O&U business field Continue to explore business opportunities with potential for both growth and diversification,using appropriate risk analysis tools
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*1 EZRA:*2 NYK:

EZRA Holdings Limited
Nippon Yusen Kabushiki Kaisha23. Business Outlook （1/2）
 1) Chiyoda’s Strength Strengthen core value of engineering expertise and project management capability Completion of unprofitable projects within this Fiscal Year Gross Profit and Operating Income are expected to remain unchanged from the initial
forecast for this FY 2) Outlook for Upcoming Fiscal Years
 Continue in business development activities to globally secure new LNG (EPC) projects(brownfield and greenfield)
 Respond to client’s request to reduce project costs and minimize capital expenditure byutilizing Chiyoda’s technologies and expertise

Calculation Model: Revised Forecasts without ECS’ impact
Million JPY

Initial Forecast
as of May 2016

Revised Forecasts
as of Feb 9, 2017

Revenue

550,000

610,000

Operating income

18,00018,000Ordinary income

17,00016,000

Profit attributable to owners of parent

8,000

8,000

Difference

60,000in line(1,000)in line

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3. Business Outlook （2/2）
Continuous exploration of business opportunities with potential forboth growth and diversification, using appropriate risk analysis tools.

 Expanding Business Portfolio Downstream projects such as petrochemicals in US Mining projects such as copper smelting and non-ferrous metal
Business Portfolio for future growth areas Life science and Medical Renewable Energy such as Hydrogen and others New Approach： Adaptation of advanced technologies
 Innovative operation services and asset value by utilizing advanced Artificial Intelligence(AI) technologies

Reinforcement of Group companies’ operation
 Provide Chiyoda Group companies’ services towards local clients’ needs(South East Asia and Middle East and others) Expand business portfolio in countries where Chiyoda has experience in LNG projects

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4To all our Stakeholders
It is our deep regret to have announced the downward revision to the financial
forecast this time.
Having thoroughly considered our financial conditions, annual dividend remains
unchanged for the full year at 6.00 yen per share, (announced in May 2016),
since the loss recognized on this occasion is a one-time event related toinvestment, not operational one.
Chiyoda Corporation's management team is committed to make every
endevour to restore trust from all stakeholders. We sincerely ask kindunderstanding and continuous support from the stakeholders.

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5Please address inquiries to:
IR, PR & CSR Section
Tomoyuki Tsukamoto
TEL +81-45-225-7734
FAX +81-45-225-4962
URL https://www.chiyoda-corp.com/contact/en/index.php
Forward-looking Statements
The forecasts and plans in this presentation are based on information available to management on February
9, 2017, the date this material was prepared. Actual results may differ significantly from these forecasts for anumber of factors, including but not limited to changes in economic conditions and operation environment inJapan and overseas.

© Chiyoda Corporation 2017, All Rights Reserved.