Financial Results for FY2003(Year ended March 31, 2004)− On the verge of accomplishment of restructuring −May 18, 2004

1/8

Key Points of Financial Results•

Increased both in revenues and profit, and new orders forthree fiscal years in a row.

•Continuous growth in natural gas business and domestic
business stayed firm.

•Eliminated accumulated loss in consolidated basis and stilla few more in non-consolidated basis.

(¥ billion)

300
200

249.0

217.9
139.4

128.6

166.3

141.5

(¥ billion)

290.6
206.8
6.6

0.1

1.9

0-20063100-100

901/3-4.602/303/3
New orders
Net sales
Net profit (right scale)004/3-3-6

1/8

1. Consolidated Statement of Income(¥ billion)

03/3

04/3

Difference

03/9
Forecasts

Difference

New orders

249.0

290.6

41.6 [17%]280.0

10.6 [4%]Net sales

166.3

206.8

40.5 [24%]200.0

6.8 [3%]Gross profit

10.4[6.3%]

14.1[6.8%]

3.7 [35%]—[—]—

Operating profit

1.5

5.8

4.3 [280%]

4.8

1.0 [21%]

Ordinary profit

2.3

6.3

4.0 [165%]

5.0

1.3 [26%]

Net profit

1.9

6.6

4.7 [233%]

4.1

2.5 [61%]

[—]

2/8

• Steady growth in new orders, increased 17%,
compared with the previous fiscal year.
• Net sales increased more than forecast.
• Gross profit grew due to an increase in construction
contracts, as well as improved profit rates in the parent
company and group companies.
• Profits, including operating profit, made a larger growththan gross profit due to a reduction in costs andexpenses, and tax effect.

3/8

2. Consolidated Balance Sheets(¥ billion)
Current assets
Cash and time deposit*
Trade receivables andcosts of construction
contracts in progress
Jointly controlled assetof joint venture*
Other
Fixed assets

Total assets
Cash equivalents (*):

03/3

04/3

96.9
36.1

120.5
41.6

46.4

43.5

8.6
5.6
23.3

28.4
6.9
22.3

120.2

142.8

Difference23.6) Current liabilities
5.5) Short-term loans**
Trade payables andadvance receipts on
construction contracts
(2.9)
Other
19.7)
1.3)
(1.0) Non-current liabilities
Long-term debt**
Other

03/3

Total Shareholders’ Equity
22.5) Total Liabilities andShareholders’ Equity

04/3

89.4
8.2

Difference15.4)
104.8(8.1)
0.1

71.6
9.5

89.9
14.718.2)
5.3

14.2
10.4
3.8

15.2
10.3
4.91.0)
(0.1)
1.1)

16.6
120.2

22.7
142.86.0)
22.5)

Cash and time deposit (¥41.6 billion) + Jointly controlled asset of joint venture (¥28.4 billion)=¥70.0 billion (Increased ¥25.3 billion from ¥44.7 billion in the previous fiscal year)
Interest-bearing debt (**): Short-term loans (¥0.1 billion) + Long-term debt (¥10.3 billion)=¥10.4 billion（Decreased ¥8.2 billion from ¥18.6 billion in the previous fiscal year）

4/8

•

Notable increase in jointly controlled asset of joint venture
due to growing number of overseas projects, which aremostly JV projects.

•Interest-bearing debt was further decreased (¥8.2 billion
decreased from the previous fiscal year), however, rise incredit resulted cash and time deposit to increase ¥5.5 billion.

•Accumulated losses were eliminated as consolidated
retained earnings recorded gain of ¥5.8 billion, comparedfrom loss of ¥0.5 billion in the previous fiscal year. Nonconsolidated retained loss has been also depressed to¥0.35 billion.

•Equity ratio has improved to 15.9%, compared with 13.9% in
the previous fiscal year.

3. Consolidated New Orders and Backlog of Orders(¥ billion)

New orders

400

375.8

5/8

385.8

316.1

200

Overseas

290.6

246.1

300

249.0
217.9

164.2

218.6

230.0

Domestic

160.0

Backlog of orders

128.0

180.4

81.1

89.9

68.6

71.9

70.0

01/3

02/3

03/3

04/3

05/3 (est.)[Overseas ratio]
42%

59%

72%

75%

70% (est.)

139.4

100058.3

Backlog of contracts by segment （04/3）
Petroleum
8%

Chemicals
10%
Other
5%

Power & Gas
77%

Russiaand others
38%

Japan
24%

Middle
East
27%

Asia
11%

6/8

Backlog of contracts:
Increased 19% from the previous fiscal year.
Domestic Market:
Responding to the changing customers needs.
Environmental responding for petroleum and chemicals.
Growing gas demand for power & gas.
Overseas Market:
Increased investment for natural gas and gas chemicals.
Increased investment for petroleum and chemicals in China.
Major new projects
Overseas
Major New Orders

Over ¥10 billion
LNG plant /Crude oil export facilities (Russia)
Gas processing plant <additional> (Qatar)
Under ¥10 billion
Polyvinylidene chloride plant (China/Kureha ChemicalIndustry)
PMMA sheets plant (China/Mitsubishi Rayon)
FEED work for LNG plant (Qatar)
Other two power & gas projects

Domestic
Under ¥10 billion
National LPG stockpiling projects
Hydrodesulfurization plant (Nippon Petroleum Refining)
Ultra low sulfur gasoline projects (Showa Yokkaichi Sekiyu / Seibu Oil)Pharmaceutical laboratory (Mitsubishi Pharma)
Other two petroleum and one power & gas projects

7/8

4. Forecasts for the fiscal year ending March 31, 2005(¥ billion)

04/3
Actual05/3
Forecasts

Difference

05/3
Interim
Forecasts

04/3
Interim
ActualNew orders

290.6

230.0 *1 (60.6) [(21%)]

80.0

241.5

Net sales

206.8

220.0 *2

13.2

[6%]

100.0

88.6

Operating profit

5.8

7.1

1.3

[22%]

3.3

2.5

Ordinary profit

6.3

7.1

0.8

[12%]

3.3

3.0

Net profit

6.6

7.3

0.7

[10%]

3.4

2.2

*1 New orders: Overseas ¥160.0 billion, Domestic ¥70.0 billion*2 Net sales:
Overseas ¥145.0 billion, Domestic ¥75.0 billion8/8• Net sales is expected to rise 6%, to ¥220 billion from theprevious fiscal year.
• Operating profit, ordinary profit and net profit are also
expected a favorable growth.
• Resumption of cash dividends, ¥3 to 5 per share, is to beprovided after nine fiscal years since the last dividendpaid.

[Appendix 1][Major projects for FY2003]
Overseas
Major New Orders

Over ¥10 billion
LNG plant /Crude oil export facilities (Russia)
Gas processing plant <additional> (Qatar)
Under ¥10 billion
Polyvinylidene chloride plant (China/Kureha Chemical Industry)PMMA sheets plant (China/Mitsubishi Rayon)
FEED work for LNG plant (Qatar)
Other two power & gas projects

Completedconstruction
contracts

Over ¥10 billion
LNG plant (Qatar)
LNG plant/Crude oil export facilities (Russia)
LNG plant (Oman)
Methanol plant (Saudi Arabia)
Other one power & gas project

DomesticUnder ¥10 billion
National LPG stockpiling projects
Hydrodesulfurization plant (Nippon Petroleum Refining)
Ultra low sulfur gasoline projects (Showa Yokkaichi Sekiyu / Seibu Oil)Pharmaceutical laboratory (Mitsubishi Pharma)
Other two petroleum and one power & gas projects

Under ¥10 billion
Flue gas desulfurization plant (Kobe Steel)Pharmaceuticals plant (Chugai Pharmaceutical)
Atmospheric distillation plant (upgrading)/
Crude distillation unit (Taiyo Oil)
Other one petroleum project, two chemicals projects, two power & gas
projects and one more project

Under ¥10 billion
One petroleum project, two chemicals projects, one power & gas
project, and one more project
Major Contracts
carried over

LNG plant/Crude oil export facilities (Russia)
LNG plant (Oman)
Gas processing plant (Qatar)
LNG plant (Qatar)
SM/PO and MPG/Polyols plant (China)
Gas processing plant (Indonesia)
Methanol plant (Saudi Arabia)
PMMA sheets plant (China/Mitsubishi Rayon)
Polyvinylidene chloride plant (China/Kureha Chemical Industry)
LNG plant (debottlenecking) (Qatar)
Refinery modernizaton (Venezuela)
Other one power & gas project

LNG receiving terminal (Mizushima LNG)
National LPG stockpiling projects
Hydrodesulfurization plant (Nippon Petroleum Refining)
Ultra low sulfur gasoline project (Showa Yokkaichi Sekiyu)
Pharmaceutical laboratory (Mitsubishi Pharma)
Ultra low sulfur gasoline project (Seibu Oil)
Other one petroleum project

[Appendix 2][Consolidated Segment Information]
Net sales （%）

New orders（%）

Backlog of orders （%）

Petroleum

6211284131758

Chemicals

2522262219724

22

10Others

48

28

1722

19

1116

105

Power & Gas

2129

45

48

59

69

43

63

77

Japan

68

50

30

4128

2540

26

24

Asia

15151351881215

11Middle East

1228

4453

46

164252

27

Russia and others

57131851

6738

Overseas

Geographic segment Business segment

02/3 03/3 04/3 05/3 02/3 03/3 04/3 05/3 02/3 03/3 04/3 05/3: Forecasts

3565

30702080

[Appendix 3][Consolidated Performance Indicators]
Indicators

02/303/304/305/3

Gross profit rate (%)

3.3

6.3

6.8

―

SG&A expenses to net sales (%)

6.9

5.4

4.0

―

Operating profit to net sales (%)

(3.6)

0.9

2.8

3.2

Ordinary profit to net sales (%)

(2.4)

1.4

3.1

3.2

Net profit to net sales (%)

0.1

1.2

3.2

3.3

Return on assets (ROA) (%)

(2.5)

1.9

4.8

―

Return on equity (ROE) (%)

0.8

12.6

33.7

―

Net profit per share (EPS) (Yen)

0.65

10.79

35.91

39.45

Book-value per share (BPS) (Yen)

81.47

90.01

123.04―Equity ratio (%)

11.7

13.9

15.9

―

Current ratio (%)

101.4

108.4

115.0

―

Fixed ratio (%)

178.8

140.2

98.0

―

Debt-to-equity ratio (DER) (Times)

1.86

1.12

0.46

―

: Forecasts

Forward-looking Statements
The forecasts and plans in this presentation are based on information available to management on May
18, 2004, the date these materials were prepared. Actual results may differ significantly from theseforecasts for a number of factors, including but not limited to changes in economic conditions andoperating environment in Japan and overseas.
Please address inquiries to: Takuhiro Murata, IR Manager, Corporate Communications OfficeTel: +81-45-506-7538 Fax: +81-45-506-7085 Cell: 090-3348-3484
e-Mail: tamurata@ykh.chiyoda.co.jp URL： http://www.chiyoda-corp.com/