Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

The presentation was held in Japanese.

November 15, 2022

This document is a translation/summary

IR, PR & Sustainability Advanced Section

for reference only.

Corporate Services Department
Chiyoda Corporation
Summary of a Q&A session following the Presentation of theSecond Quarter Financial Results for Fiscal Year Ending March 31, 2023
The following is a summary of a Q&A session following the presentation (telephoneconference) of Chiyoda Corporation’s (Chiyoda) financial results for the second quarter offiscal year ending March 31, 2023, released on November 8, 2022.
Question
1Answer

Revenue
How will revenue be accumulated Revenue will be accumulated towards the fullafter the third quarter, while the year forecast from the third quarter with thesecond quarter revenue progress progression of large scale overseas projects,
is 37%?

especially NFE LNG in Qatar and the copper
smelting plant in Indonesia.

2

Gross profit margin
Why did the gross profit margin Decreased gross profit margin was mainly
decrease to 6.6% from 8.1% YoY? caused by the following two factors:(1) Additional contingencies on some projects

along with ongoing discussions with clients toshare additional material and transportation
costs.
(2) Revenue is decreasing as some domestic

high profit projects near completion.
Contingencies will be monetized after the third
quarter following negotiations with clients toshare additional costs.
The full year gross profit margin The gross profit margin is as the full year
forecast was not revised.

forecast, excluding special factors.

What is the current gross profit
margin, excluding special factors?

1Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

Question
3

IncreasingmaterialAnswer
andtransportation costs
How do increasing material and Major lump-sum overseas projects are affectedtransportation costs affect the by increasing material and transportation costs
financial results and what is the caused by COVID-19 and the geopolitical crisis
forecast?

in the Ukraine, however cost impacts aregradually settling down.
Chiyoda is discussing with clients and JV
partners to share costs, minimizing impacts onprojects.

4Currency exchange fluctuation
The full year forecast exchange Risks are hedged by exchange reservations forrate is changed to JPY138 from project
JPY120.

foreigncurrency

receivables

andpayables to avoid financial result currency

How does a weak yen affect exchange fluctuation impacts.
financial results?
5The influence is neutral to bottom line.

New order forecast
The new order full year forecast is The breakdown of the new order full year forecast
JPY 300 billion.

of JPY 300 billion is JPY 200 billion and JPY 100

Please advise new order current billion for overseas and domestic projects
and future progress, such as NFS respectively.
LNG in Qatar and domestic life Chiyoda aims to accumulate new domestic
science projects.

project orders as planned to maintain solid
revenue centered in life science field.
NFS LNG in Qatar is an expansion project for theongoing NFE LNG project.
Chiyoda is leveraging its strength for NFS LNG
because it has the most extensive track record inQatar.
Businessconditions

remainvolatileanduncertain however, with cost increases from thegeopolitical crisis in the Ukraine.
Chiyoda will continue to carefully monitor andanalyze the risks.

2Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

Question

Answer
Bidding status cannot be disclosed because ofclient confidentiality.

6Business Environment
LNG demand is increasing due to LNG as a transitional source of energy isthegeopoliticalUkraine.

Howcrisisin

the becoming increasingly important as the energy

doesChiyoda supply tightens, especially in Europe, due to theforesee the future LNG market?

geopolitical crisis in the Ukraine.
Some countries have requested Chiyoda to join
LNG production increase discussions.
However, because LNG plant construction cantake 5-6 years, oil & gas enterprises makeinvestment

decisions

based

on

long-term

forecasts.
Qatar, where Chiyoda is particularly competitive,
produces gas at low cost, making the investment
decision easier.
Renewable energy transition in Europe could
accelerate if the LNG price remains highhowever.
Inflation

couldconstruction

resultcosts,inmakinghightheLNG

plant

investment

decisions harder.
Demand in Asia will increase as per the global
trend to 2050 as net-zero goals remain the same.
We will continue monitoring client circumstances.

-EndPlease submit inquiries to:IR, PR & Sustainability Advanced Section, Corporate Services Department
Tel. +81-45-225-7734

3

Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

Note: Some additions and corrections have been made to simplify the content for readers.
Any projections included in these materials are based solely on information available at thetime 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.
Investors are recommended not to depend solely on these projections for making investment
decisions.

4