CHIYODA CORPORATION
Consolidated Financial Results
for the Three Months Ended June 30, 2007
(the First Quarter of the Fiscal Year Ending March 31, 2008)

This document has been prepared as a guide to non-Japanese investors and contains forwardlooking statements that are based on managements’ estimates, assumptions and projections at thetime of publication. A number of factors could cause actual results to differ materially fromexpectations. This document is a translation of excerpts taken from the Japanese language original.
All numbers are rounded down to the nearest unit in accordance with standard Japanese practice.
Please be advised that the Company cannot accept responsibility for investment decisions madebased on the information contained in this report. Please refer to “3. Qualitative Information on
Forecast of Consolidated Results” on page 4 for notes concerning the assumptions on which results
forecasts are based and the use of those forecasts.
1

Summary of Consolidated Financial Results
for the Three Months Ended June 30, 2007
(the First Quarter of the Year Ending March 31, 2008)

Listed Exchanges
Head Office
Stock CodePresident & CEO
Inquiries
Telephone
URL

Tokyo (First Section)
Kanagawa, Japan
6366
Takashi Kubota
Shinji Kusunoki, General Manager, Accounting Department+81-45-506-9410
http://www.chiyoda-corp.com/

1. Consolidated Results of Operations for the Three Months Ended June 30, 2007
(1) Consolidated Business Results
Millions of Yen
1Q FY2007
Apr. 1, 2007—
Jun. 30, 2007

1Q FY2006
Apr. 1, 2006 —Jun. 30, 2006

Change (%)

Revenues .........................................................
Operating Income ...........................................
Recurring Profit ..............................................
Net Income ......................................................
Net Income per Share (Yen) ...........................
Fully Diluted Net Income per Share (Yen) ................
Notes:

140,371
7,266
10,685
5,341
27.78
27.77

54.0%
9.2%
38.4%
21.4%

(reference)
FY2006
Apr. 1, 2006 —Mar. 31, 2007

Change (%)

91,170
6,654
7,721
4,399
22.89
22.86

33.6%
74.5%
86.4%
(9.0%)

484,895
28,70036,79723,531
122.41122.28

1. Amounts less than 1 million are rounded down.
2. Percentage change figures are comparisons with the same period of the previous fiscal year.

(2) Change in Consolidated Financial Condition
Millions of Yen
1Q FY2007
As ofJun. 30, 2007
Total Assets .............................................................................
Net Assets ................................................................................
Shareholders’ Equity Ratio ....................................................
Shareholders’ Equity per Share (Yen)...................................

462,222
79,97617.2%
413.961Q FY2006
As ofJun. 30, 2006
316,561
57,90518.2%
299.47(reference)
FY2006
As ofMar. 31, 2007
442,952
77,41417.4%
400.562

(3) Consolidated Cash FlowMillions of Yen

Net Cash Provided by Operating Activities ......................................
Net Cash Used in Investing Activities..............................................
Net Cash Used in Financing Activities ..............................................
Cash and Cash Equivalents, End of Period......................................

1Q FY2007
Apr. 1, 2007 —Jun. 30, 2007

1Q FY2006
Apr. 1, 2006 —Jun. 30, 2006

(reference)
FY2006
Apr. 1, 2006 —Mar. 31, 2007

362
(348)
(2,618)74,503

3,580(551)(1,659)48,36335,531(3,458)(2,191)
77,051

2. Dividends per Share
Yen
Full term
Year Ended March 31, 2007 ........................................................ ................................
Year Ending March 31, 2008 (Forecast) .....................................................................

15.00
18.00

3. Outlook for the Year Ending March 31, 2008 (Consolidated)(Percentages represent change compared with the previous interim period or full term, respectively)

Revenues ..................................................................................
Operating Income.....................................................................
Recurring Profit ........................................................................
Net Income ................................................................................
Net Income per Share (Yen) ....................................................

Millions of Yen
FY2007 (Apr. 1, 2007 – Mar. 31, 2008)
Interim period
Full term%
275,000
30.3
550,000
15,00011.2
30,00019,50016.8
38,50012,000
7.4
23,50062.41
122.23

%
13.4
4.5
4.6
(0.1)

4. Other(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries due to changes in thescope of consolidation): No(2) Application of simplified accounting methods: Yes(3) Changes in accounting methods from the most recent fiscal year: Yes
Note: For details, please refer to “(4) Basis of Presenting Consolidated Financial Statements” on page 8.

3

Qualitative Information and Financial Statements
1. Qualitative Information on Consolidated Results of Operations
In overseas markets for plants, new plant construction plans around the world are being driven by continuing
growth in global energy demand. In Japan, investment remains firm in new facility construction and existing facility
renovation, mainly in the fields of petroleum and petrochemicals.
In the Middle East, where there is an ongoing rush to construct new plants, project execution is severely
constrained due to a continuing unavoidable decline in productivity caused by a tight supply of skilled workers.
Under these circumstances, the Chiyoda Group is focusing on steady execution of ongoing projects, mainly in
Qatar.
On a consolidated basis, new contracts for the three months ended June 30, 2007 were 64,650 million yen, a
62.4% decrease compared with the same period of the previous fiscal year. The backlog of contracts as of June 30,
2007 was 1,002,381 million yen, a decrease of 3.2%. Revenues increased 54.0% to 140,371 million yen, operating
income increased 9.2% to 7,266 million yen, recurring profit increased 38.4% to 10,685 million yen and net income
increased 21.4% to 5,341 million yen.
2. Qualitative Information on Consolidated Financial Condition
Net assets as of June 30, 2007 increased 2,561 million yen from the end of the previous fiscal year. Total assets
increased 19,270 million yen due to factors including an increase in jointly controlled assets of joint venture
resulting from advance receipts on construction contracts in connection with large-scale joint venture projects.
Consequently, the equity ratio declined 0.2 percentage points from March 31, 2007 to 17.2%.
Net cash provided by operating activities was 362 million yen.
3. Qualitative Information on Forecast of Consolidated Results
Chiyoda is making no revisions at this time to its interim and full-term consolidated forecasts of results for the
fiscal year ending March 31, 2008, or to the forecast of year-end dividends of 18 yen per share, announced on May
14, 2007. Forecasts continue to assume an exchange rate of 115 yen to the U.S. dollar.
4. Other(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries due tochanges in the scope of consolidation)
None applicable(2) Application of simplified accounting methods
As stated in “(4) Basis of Presenting Consolidated Financial Statements” on page 8.
(3) Changes in accounting methods from the most recent fiscal year
As stated in “(4) Basis of Presenting Consolidated Financial Statements” on page 8.

4

5. Summary Consolidated Financial Statements(1) Summary Consolidated Balance Sheets
1Q FY2007
As ofJun. 30, 2007%

Millions of Yen
1Q FY2006
As ofJun. 30, 2006%

FY2006
As ofMar. 31, 2007%

AssetsCurrent Assets
Cash and cash equivalents and time deposits.........
Notes and accounts receivable-trade.......................
Costs of construction contracts in process ..............
Deferred tax assets ..................................................
Jointly controlled assets of joint venture ..................
Other ........................................................................
Allowance for doubtful accounts ..............................
Total Current Assets.........................................

74,62733,81936,412
5,914
274,230
11,845(43)436,806

94.5

48,51728,14333,532
1,868
170,512
11,284(61)
293,797

92.8

77,17738,65927,656
5,884
256,060
12,640(40)
418,037

94.4

Fixed Assets
Property, plant and equipment .................................
Intangible fixed assets..............................................
Investments and other assets
Investment securities ..........................................
Deferred tax assets.............................................
Other investments...............................................
Reserves.............................................................
Total investments and other assets ....................
Total Fixed Assets ............................................
Total Assets.......................................................

7,692
3,391

7,026
3,046

7,464
3,352

9,068
1,933
3,872
(541)
14,332
25,416462,222

5.5
100.0

5,501
4,162
4,525
(1,497)
12,691
22,764
316,561

100.0

8,740
2,056
3,841
(539)
14,097
24,915442,952

5.6
100.0

Liabilities
Current Liabilities
Notes and accounts payable-trade ..........................
Current portion of long-term debt ............................
Income taxes payable ..............................................
Advance receipts on construction contracts ............
Reserves ..................................................................
Other .......................................................................
Total Current Liabilities ....................................

88,392
71
4,829
254,821
4,080
16,536
368,732

79.8

86,41576
3,558
139,906
3,649
7,749
241,355

76.2

86,81396
13,070231,818
6,688
12,957351,444

79.3

Non-Current Liabilities
Long-term debt.........................................................
Reserves ..................................................................
Other liabilities..........................................................
Total Non-Current Liabilities............................
Total Liabilities .......................................................

10,061
2,522
929
13,514382,246

2.9
82.7

10,133
5,393
1,772
17,300258,655

5.5
81.7

10,067
2,276
1,748
14,093
365,537

3.2
82.5

17.2

12,9096,692
39,266(724)
58,143

18.4

12,9286,711
58,398(905)
77,133

17.4

0.0
0.1
17.3
100.0

(195)
(173)
(214)
(584)
346
57,905316,561

(0.2)
0.1
18.3
100.0

247
(408)
49
(110)
392
77,414442,952

(0.0)
0.1
17.5
100.0

Net Assets
Shareholders’ Equity
Common stock .........................................................
Additional paid-in capital ..........................................
Retained earnings ....................................................
Treasury stock..........................................................
Total shareholders’ equity ...................................
Valuation and Exchange Rate Adjustments
Unrealized gain on available-for-sale securities ......
Deferred loss on hedge transactions .......................
Foreign currency translation adjustments ................
Total valuation and exchange rate adjustments ......
Minority interests ......................................................
Total Net Assets ....................................................
Total Liabilities and Net Assets ...........................

12,9286,712
60,856(984)
79,513
427
(451)
100
77
385
79,976462,222

7.2

5

(2) Summary Consolidated Statements of Income
Millions of Yen
1Q FY2006
Apr. 1, 2006–
Jun. 30, 2006%

1Q FY2007
Apr. 1, 2007–
Jun. 30, 2007%
Revenues .................................................................
Cost of Revenues....................................................
Gross profit ...............................................................
Selling, General and
Administrative Expenses....................................
Operating income......................................................

FY2006
Apr. 1, 2006–
Mar. 31, 2007%

140,371
130,311

100.0
92.8

91,17081,796100.0
89.7

484,895
445,158

100.0
91.8

10,059

7.2

9,373

10.3

39,736

8.2

2,793

2.0

2,719

3.0

11,036

2.3

7,266

5.2

6,654

7.3

28,700

5.9

2.5

1,271
16
—
173
1,461

1.6

8,442
68
375
486
9,373

1.9

0.4

310
—
965
1,275

0.2

8.5

36,797

7.6

0.2

742
263
166
1,171

0.2

0.0

7.8
2.9
0.0
4.9

Other Income
Interest..............................................................
Dividend income ...............................................
Equity in earnings of associated companies.....
Other ................................................................
Total Other Income .................................................

3,212
44
53
291
3,601

Other Expenses
Interest expense ...............................................
Equity in net loss of associated companies ......
Other .................................................................
Total Other Expenses .............................................

94
—
88
182

0.1

73
41
279
394

Recurring Profit .........................................................

10,685

7.6

7,721

Extraordinary Gain
Reversal of allowance for doubtful accounts ....
Reversal of allowance for investment loss........
Other .................................................................
Total Extraordinary Gain ........................................

—
—
—
—

—

122
—
52
174

Extraordinary Loss
Loss on valuation of investment securities .......
Other .................................................................
Total Extraordinary Loss........................................

—
—
—

—

Income before income taxes and minority
interests ....................................................................
Total tax ....................................................................
Minority interests in net income ................................
Net Income...............................................................

10,685
5,340
2
5,341

—

—

—
—
—

—

14
18
33

7.6
3.8
0.0
3.8

7,896
3,478
18
4,399

8.7
3.9
0.0
4.8

37,935
14,342
60
23,531

6

(3) Summary Consolidated Statements of Cash Flow
1Q FY2007
Apr. 1, 2007–
Jun. 30, 2007

Millions of Yen
1Q FY2006
Apr. 1, 2006–
Jun. 30, 2006

FY2006
Apr. 1, 2006–
Mar. 31, 2007

10,685
355

7,896
378

37,935
1,507

Cash Flow from Operating Activities
Income before income taxes and minority interests .....................
Depreciation and amortization......................................................
Decrease (increase) in trade notes and accounts receivable,
and costs and estimated earnings on long-term
construction contracts...............................................................
Decrease (increase) in costs of construction contracts inprocess .....................................................................................
Increase in trade notes and accounts payable.............................
Increase in advance receipts on construction contracts...............
Increase in jointly controlled assets of joint ventures ...................
Other ............................................................................................
Subtotal ................................................................................
Interest and dividends received....................................................
Interest paid..................................................................................
Project settlement money paid .....................................................
Income taxes paid ........................................................................
Net Cash Provided by Operating Activities .....................................

4,850

18,8478,484(8,755)
1,575
22,999(18,170)(1,025)
12,515
1,176(90)—(13,237)362(15,606)725
37,923(39,175)(3,238)
7,750
97
(72)
(469)
(3,725)3,580(9,728)947
129,741(124,724)(1,687)42,475
335
(317)
(469)
(6,492)35,531

Cash Flow from Investing Activities
Purchases of property, plant and equipment and intangible
fixed assets ..................................................................................
Payments for purchase of investment securties...........................
Disbursements for originating long-term loans .............................
Proceeds from collections of long-term loans ..............................
Other - net ....................................................................................
Net Cash Used in Investing Activities .............................................

(361)
—
—
8
4
(348)

(440)
(139)
(15)
29
14
(551)

(1,779)(2,419)
(15)
609
146
(3,458)(30)
1(2,498)
(12)
(78)

(5)
16
(1,621)
—
(48)

(46)
54
(1,915)(54)(229)(2,618)(1,659)(2,191)

Cash Flow from Financing Activities
Repayments of long-term debt ....................................................
Proceeds from issuance of common stock...................................
Payment of cash dividends ..........................................................
Payment of cash dividends to minority shareholders ...................
Other - net ....................................................................................
Net Cash Used in Financing Activities .............................................
Foreign Currency Translation Adjustments on Cashand Cash Equivalents.....................................................................
Net Increase (Decrease) in Cash and Cash Equivalents ...............
Cash and Cash Equivalents, Beginning of Period ..........................
Cash and Cash Equivalents of Exclusion of Consolidated
Subsidiaries ....................................................................................
Cash and Cash Equivalents, End of Period .....................................

55

181

357

(2,548)77,051

1,551
46,87830,23946,878—74,503(66)
48,363(66)
77,051

7

(4) Basis of Presenting Consolidated Financial Statements
1) Summary of significant accounting policies
The Company applies simplified methods for calculating certain items while assuring compliance with theStandards for Preparation of Quarterly Financial Statements and avoiding material misrepresentation of
information that would affect the judgment of interested parties, including investors.
Scope of application of simplified calculation methods
The Company calculates its tax liabilities with a simplified method using an estimated annual tax rate based on
the effective tax rate. The Company also uses simplified methods to calculate certain expenses.
2) Summary of significant changes in accounting methods
The method for depreciating property, plant and equipment acquired since April 1, 2007 has been changed tocomply with revisions to the Corporation Law during the year ended March 31, 2007.
This change has no material effect on profit and loss.
3) Summary of significant reserves
The following reserves are included in “reserves” in each section of the summary consolidated balance sheets.
1Q FY 2007
As of Jun. 30, 2007

1Q FY 2006
As of Jun. 30, 2006

Millions of Yen

Fixed assets
Allowance for doubtful
accounts

Current liabilities
Allowance forwarranty costs forcompleted works
Accrued bonuses
Allowance for losses
on construction
contracts
Non-current liabilities
Liability for retirement
benefits
Liability for retirement
benefits to directors

(541)

1,825

2,245
10

2,091
431

FY2006
As of Mar. 31, 2007

Millions of Yen

Fixed assets
Allowance for doubtful
accounts
Allowance for capital
loss on investments
Current liabilities
Allowance forwarranty costs forcompleted works
Accrued bonuses
Allowance for losses
on construction
contracts
Non-current liabilities
Liability for retirement
benefits
Liability for retirement
benefits to directors(1,234)
(263)

1,546

2,009
93

5,007
386

Millions of Yen

Fixed assets
Allowance for doubtful
accounts
Allowance for capital
loss on investments
Current liabilities
Allowance forwarranty costs forcompleted works
Accrued bonuses
Allowance for losses
on construction
contracts
Non-current liabilities
Liability for retirement
benefits
Liability for retirement
benefits to directors

(539)

1,581

5,096
10

1,789
486

4) Other significant matters
The Company has engaged Deloitte Touche Tohmatsu as its advisor on matters concerning the disclosure offinancial information for the first and third quarter reporting periods (April 1 to June 30 and April 1 to December
31, respectively) of the fiscal year.

85. Production, Contracts and Sales (Consolidated)
Millions of Yen
1Q FY2007
Apr. 1, 2007 —Jun. 30, 2007
RevenuesAmt%

New contracts
Amt%

Backlog of contracts
Amt%

Business Segment
Engineering
LNG plants .................................
Gas and power utilities ...............
Gas chemicals ............................
Petroleum and petrochemicals...
General chemicals........................
Industrial machinery .....................
Environment and other ...............
Total Engineering

10,774
16,79316
22,513
9,163
1,325
2,671
63,259

16.7
26.0
0.0
34.8
14.2
2.0
4.1
97.8

101,966
12,821
148
15,963
4,393
2,454
1,231
138,980

72.6
9.1
0.1
11.4
3.1
1.8
0.9
99.0

576,776
308,779
1,583
79,68022,5394,284
8,736
1,002,381

57.5
30.8
0.2
8.0
2.2
0.4
0.9
100.0

Other...........................................

1,390

2.2

1,390

1.0

—

—

Domestic ....................................
Overseas ....................................
Total ...........................................

33,86330,78764,650

52.4
47.6
100.0

25,066
115,304
140,371

17.9
82.1
100.0

154,333
848,047
1,002,381

15.4
84.6
100.0

Millions of Yen
1Q FY2006
Apr. 1, 2006 —Jun. 30, 2006
RevenuesAmt%

New contracts
Amt%

Backlog of contracts
Amt%

Business Segment
Engineering
LNG plants .................................
Gas and power utilities ...............
Gas chemicals ............................
Petroleum and petrochemicals...
General chemicals........................
Industrial machinery .....................
Environment and other ...............
Total Engineering

22,699117,015351
16,681
5,337
6,649
1,492
170,226

13.2
68.1
0.2
9.7
3.1
3.9
0.9
99.1

73,876
3,711
358
7,912
2,714
325
759
89,658

81.0
4.1
0.4
8.7
3.0
0.3
0.8
98.3

790,537
145,3032,599
64,45422,0988,033
2,820
1,035,846

76.3
14.0
0.3
6.2
2.1
0.8
0.3
100.0

Other...........................................

1,511

0.9

1,511

1.7

—

—

Domestic ....................................
Overseas ....................................
Total ...........................................

32,849138,889
171,738

19.1
80.9
100.0

10,35680,814
91,170

11.4
88.6
100.0

119,933
915,913
1,035,846

11.6
88.4
100.0

9

Millions of Yen
FY2006
Apr. 1, 2006 —Mar. 31, 2007
RevenuesAmt%

New contracts
Amt%

Backlog of contracts
Amt%

Business Segment
Engineering
LNG plants .................................
Gas and power utilities ...............
Gas chemicals ............................
Petroleum and petrochemicals...
General chemicals........................
Industrial machinery .....................
Environment and other ...............
Total Engineering .....................

122,045
298,751521
85,251
19,377
13,881
11,091550,922

21.9
53.5
0.1
15.3
3.5
2.5
2.0
98.8

337,927
33,646
1,419
68,21020,918
10,172
5,815
478,110

69.7
6.9
0.3
14.1
4.3
2.1
1.2
98.6

646,332
297,016
1,714
73,104
17,7695,413
7,327
1,048,679

61.6
28.3
0.2
7.0
1.7
0.5
0.7
100.0

Other...........................................

6,785

1.2

6,785

1.4

—

—

Domestic ....................................
Overseas ....................................
Total ...........................................

155,297
402,409557,707

27.8
72.2
100.0

106,550
378,345484,895

22.0
78.0
100.0

145,542903,136
1,048,679

13.9
86.1
100.0

Note: The backlog of contracts for the three months ended June 30, 2007 includes a decrease due to changes in construction contracts
acquired in prior fiscal years, an increase due to adjustments in new contract amounts, and an increase due to foreign exchangetranslation adjustments.

10