Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2019

Abridged Translation:
The report is not audited and this translation is an abridged version prepared based on the statutory format in Japan for reference
purpose only. If there is any discrepancy between this translation and the original Japanese version, the Japanese shall prevail.

Consolidated Financial Results
for the Three Months Ended June 30, 2019
August 1, 2019
Company name:
Listing:
Stock code:
URL:
Representative:
Inquiries:TEL:

CHIYODA CORPORATIONTokyo Stock Exchange
6366
http://www.chiyodacorp.com/
Masaji Santo, President & COO
Masaru Akiyama, GM, Accounting Department+81-45-225-7745

Scheduled date to file Quarterly Report: August 9, 2019
Preparation of Quarterly Supplementary Explanation Material: Yes
Quarterly Financial Results Presentation Held: Yes (for Analysts and Institutional Investors)(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated performance for the three months ended June 30, 2019
(Percentages indicate year-on-year changes)(1) Consolidated operating results
Revenue

Operating income

Millions of yen%

Millions of yen

86,471

(7.6)

9,076

93,626 (20.6)(3,376)

For the three months
ended June 30, 2019
For the three months
ended June 30, 2018
Note: Comprehensive Income:

Profit attributable toowners of parent

Ordinary income%

Millions of yen

3,698

－

(3,163)－%

Millions of yen

2,274

－

(3,702)－%－－the three months ended June 30, 2019: 4,463 million yen / (－)%
the three months ended J June 30, 2018: (4,976) million yen / (－)%

Net income per share

Fully diluted net
income per share

Yen

For the three months
ended June 30, 2019
For the three months
ended June 30, 2018

Yen

8.78

－

(14.30)－(2) Consolidated financial position
Total assets
Millions of yen

Net assets

Equity ratio

Millions of yen%

As of June 30, 2019356,693(54,932)(15.6)
As of March 31, 2019352,341(59,154)(17.1)
Reference: Equity As of June 30, 2019: (55,630) million yen
As of March 31, 2019: (60,114) million yen

2. Cash dividends
Record dateCash dividends per shareFirst quarter
Yen

Second quarter
Yen

Fiscal year ended
March 31, 2019
Fiscal year ending
March 31, 2020
Fiscal year ending
March 31, 2020 (Forecast)
Note: Revision to the latest forecast announcement 2019: None

Third quarter
Yen

Fiscal year-end
Yen

Annual

Yen

-

0.00

0.00

-

0.00

0.00

Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2019

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2020
(from April 1, 2019 to March 31, 2020)(Percentages indicate year-on-year changes)

Revenue
Millions of yen

Operating income%

Millions of yen

Fiscal year ending
390,000
14.1
12,000 －March 31, 2020
Note: Revision to the latest forecast announcement 2019: None%

Profit attributable toowners of parent

Ordinary income
Millions of yen

12,000%Millions of yen

－

6,000

Net income
per share

%

Yen

23.17

－

4. Others(1) Changes in Significant Subsidiaries during the Period (changes in specified subsidiaries accompanying
changes in the scope of consolidation): None
(2) Adoption of Specified Accounting Methods for the Preparation of Quarterly Consolidated Financial
Statements: None
(3) Changes in Accounting Policies and Accounting Estimates / Restatements
a. Changes in accounting policies due to revisions of accounting standards, etc.: Yes
b. Changes in accounting policies other than a. above: Nonec. Changes in accounting estimates: None
d. Restatements: None
(4) Number of issued shares (common stock)a. Total number of issued shares at the end of the period (including treasury stock)
As of June 30, 2019
260,324,529 shares
As of March 31, 2019
260,324,529 sharesb. Number of treasury stock at the end of the period
As of June 30, 2019
1,357,261 shares
As of March 31, 2019
1,357,156 sharesc. Average number of shares during the period
For the three months ended June 30, 2019258,967,311 shares
For the three months ended June 30, 2018258,967,640 shares*Presentation of Implementation Status of Quarterly Review Procedure

The review procedure of quarterly financial statements based on the Financial Instruments and Exchange Law has not been
completed at the time of the disclosure of these Consolidated Financial Statements.

*Proper use of earnings forecasts, and other special directions

The forward-looking statements, including earnings forecasts, contained in these materials are based on information
currently available to the Company and on certain assumptions deemed to be reasonable. Actual business and other results
may differ substantially due to a number of factors.

Dividend Status of Class A SharesClass A Share
Record dateFiscal year ended
March 31, 2019
Fiscal year ending
March 31, 2020
Fiscal year ending
March 31, 2020 (Forecast)First quarter
Yen-

Cash dividends per share
Second quarter
Yen

Third quarter
Yen

-

-

-

-

Fiscal year-end
Yen

Annual

Yen

0.0

0.0

Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2019

Table of Contents for the appendices1.

2.

Qualitative Information Related to Consolidated Performance .................................................... 2(1)

Qualitative Information on Business Performance ................................................................ 2(2)

Financial Information on Business Performance ................................................................... 3(3)

Outlook for the Next Fiscal Year ........................................................................................... 3

Consolidated quarterly financial statements ................................................................................ 4(1)

Consolidated balance sheets ................................................................................................ 4(2)

Consolidated statement of income and comprehensive income ........................................... 6(3)

Notes on Consolidated Quarterly Financial Statements ....................................................... 7

3.

Production, Contracts and Revenue ............................................................................................ 8

4.

Others………………………………………………………………………………………………………...111

Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2019

1. Qualitative Information Related to Consolidated Performance(1) Qualitative Information on Business Performance

In the first quarter of this fiscal year, the price of oil has stayed within a range of approximately $60-50 per
barrel, in slightly decreasing trend. In the liquefied natural gas (LNG) business, customers consider final
investment decisions for new large-scale projects, reflecting consistent LNG demand, especially from newly
developing countries. Amid these circumstances, the Group is continuously executing large-scale LNG
Projects worldwide; in the U.S., the 1st train of Cameron LNG started production and export of LNG, andearly stage of EPC (engineering, procurement and construction) of Golden Pass LNG was started. Further
the Company is implementing EPC proposal preparation work for Qatar expansion project and Nigeria Train
7 LNG.
In addition, the Company announced its new medium-term management plan “Chiyoda’s Revitalization Plan
– Initiatives for revitalization and the future –“ in May 2019 and various measures are taken under the newly
established risk management system.
As for the financial strengthening plan, third party allotment of 70 billion yen to Mitsubishi Corporation wasapproved at the General Shareholders Meeting held on June 25, 2019.

On consolidated basis, for the 1st quarter of the fiscal year ending March 31, 2019, New Orders amounted
to 33,266 million yen (down 57.0% YoY), Backlog to 954,107 million yen (down 6.1% from last FY) and
Revenues to 86,471 million yen (down 7.6% YoY). Operating income came to 9,076 million yen (comparedwith previous quarter’s consolidated operating loss of 3,376 million yen), Ordinary income amounted to
3,698 million yen (compared with previous quarter’s consolidated ordinary loss of 3,163 million yen) andProfit attributable to owners of parent came to 2,274 million yen (compared with previous quarter’s
consolidated loss attribute to owners of parent of 3,702 million yen).This is mainly due to the agreementwith the client for contract amendment for Cameron LNG, and foreign exchange loss.
The summary of activities in the engineering business; reportable segments below:
EnergyLNG Plant/ Gas Related Work
【Overseas】
Chiyoda is executing EPC work for projects in Australia, the U.S., and Indonesia. The 1st train of Cameron
LNG has started production and export of LNG, and remaining works are ongoing for 2nd and 3rd trainsafely and steadily. In addition, early stage of EPC work for Golden Pass LNG is underway. Meanwhile,
the Group is currently implementing EPC proposal preparation work for Qatar expansion project (7.8
million ton/year by 4 trains) and FEED plus EPC proposal preparation for Nigeria.
In “Other Gas Related Work”, the Group Company in Qatar is engaged in the EPC work of the helium
production facility as well as being engaged in the EPCm (engineering, procurement and construction
management) work of the modification and revamping projects of the LNG / gas processing plant
constructed by the Company.
【Japan】
Renovation and modification projects are underway for previously built LNG-receiving terminals, and forseismic upgrades of facilities under the Basic Act for National Resilience.
Refinery/Petrochemical/Metal【Overseas】
EPC work started for a large-scale ethylene plant in the Gulf Coast Area, US. A group company is
executing Engineering, Procurement, Construction and Commissioning (EPCC) activities for a Residue
Fluid Catalytic Cracking (RFCC) project in Malaysia. Also in Malaysia, EPC activities on a petrochemicaltank terminal are ongoing, further a group company based in Southeast Asia is engaged in project
management for downstream projects including refinery and petrochemical in Asia.
【Japan】
The Group is executing EPC work for renovation of existing refining facilities aiming to reduce sulphur

2

Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2019

content in bunkering fuel as per the new regulation which will become effective in 2020 as well as othervarious revamping / modification work.
Environment
Pharmaceutical/Biochemistry/General Chemistry【Japan】
The Group is executing EPC work for production facilities of middle molecule pharmaceuticals andsynthetic raw materials for medicines. Further, the Group is executing EPC work for functionalizedchemical facilities and hydrogenated petroleum resin production plant.
Environment/New Energy/Infrastructure【Overseas】
The Company introduced the Chiyoda Thoroughbred 121 (CT - 121) Process to flue gas desulfurization
facilities at existing coal-fired plants in India. In addition, business development activities for vegetable
growing facility using artificial light are ongoing aiming to introduce commercial facilities elsewhere in the
Middle East and Russia, based on the business collaboration with MIRAI Co. Ltd, a leading company inthis field.
【Japan】
Chiyoda is executing EPC work for the world's largest Battery Energy Storage System Project in Hokkaido,
flue gas desulfurization facilities at existing coal-fired plants, demonstration facilities for CO2 separation
units, photovoltaic (mega solar) facilities, and EPC work for the largest capacity biomass firing plant inJapan is also ongoing.
Work is underway on a demonstration project commercializing a hydrogen supply chain, through theAdvanced Hydrogen Energy Chain Association for Technology Development, an organization establishedjointly established with Mitsubishi Corporation, Mitsui & Co., Ltd. and Nippon Yusen (NYK Line).



Digital Technology
The Company is implementing projects using AI technologies to improve plant productivity in a tie-up
agreement with GRID Inc. Under these initiatives, Chiyoda has signed a memorandum of understanding
with Abu Dhabi Gas Liquefaction Co. (UAE) to provide state-of-the-art digital technologies for its LNG
Plant. Further the company has agreed with PT. Donggi-Senoro LNG (Indonesia) on the development ofAI technology to improve the productivity of the LNG plant facilities.
Meanwhile, Chiyoda is implementing the internal "Target 20" campaign aiming for further utilization ofdigital technology. Along that target, the Group strives to strengthen competitiveness based on enhanced
operations through digitization in each area of EPC business as well as corporate management practices.

(2) Financial Information on Business PerformanceThis section is not translated.
(3) Outlook for the future including full-year forecast
Same as released on May 9, 2019. No change of foreign exchange rate of JPY110/USD.

3

Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2019

2. Consolidated quarterly financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2019

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivablefrom completed construction contracts
Costs on construction contracts inprogress
Accounts receivable - other
Jointly controlled assets of joint venture
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

4

As of June 30, 201969,457

102,602

68,611

51,585

7,494

5,494

65,945110,967
5,707△1,254
326,929

72,671
94,327
5,282△1,243
330,719

5,461
4,952
1,300
11,714
5,298

6,493
5,200
1,230
12,925
4,913

6,393
701
1,478
△174
8,398
25,411
352,341

6,337
640
1,331
△174
8,134
25,973356,693

Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2019

(Millions of yen)
As of March 31, 2019
Liabilities
Current liabilities
Notes payable, accounts payable forconstruction contracts
Short-term borrowings
Current portion of long-term borrowings
Income taxes payable
Advances received on construction
contracts in progress
Provision for warranties for completed
construction
Provision for loss on construction
contracts
Provision for bonuses
Provision for business restructuring
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provisions
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive
incomeValuation difference on available-forsale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit
plans
Total accumulated othercomprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

175,277

148,805－
118
708

30,000119
651

122,252

128,908

372

391

67,63755,4503,011
1,825
21,300392,505

1,517
1,845
23,831
391,521

15,870
267
1,546
1,305
18,989411,495

15,839
245
1,692
2,326
20,104
411,626

43,396
37,112△139,956△1,435△60,882

43,396
37,112△137,681△1,435△58,607

△5

42

△50
△102

△69
2,142

767

2,976

960
△59,154352,341698△54,932
356,693926

5

As of June 30, 2019861

Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2019(2)

Consolidated statement of income and comprehensive income(Consolidated statement of income)(Millions of yen)Three months ended
June 30, 2018
Net sales of completed construction
contracts
Cost of sales of completed construction
contracts
Gross profit on completed construction
contracts
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted forusing equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of shares of subsidiaries
and associates
Total extraordinary income
Profit (loss) before income taxes

93,62686,471

92,76673,433860

13,037

4,237△3,376

3,961
9,076

631
80

653
15

24

187

39
775

81
938

56
488
17
562
△3,163

95
5,999
222
6,316
3,698

－

355

－

355
4,053
1,780
8
1,788
2,264
△10

△3,163864△322
542△3,706△4

Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent△3,702

6

Three months ended
June 30, 2019

2,274

Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2019

(Millions of yen)Three months ended
June 30, 2018
Profit (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans,
net of tax
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable tonon-controlling interests

Three months ended
June 30, 2019

△3,706

2,264

1,559
△2,684

△19
2,264

△110

△29

△16
△17

△1,269△4,976△5,022
46

48

△65

2,199
4,463
4,483

△19

(3) Notes on Consolidated Quarterly Financial Statements(Notes on Assumptions for a Going Concern)
None(Notes on Significant Changes in the Amount of Shareholders’ Equity, if Applicable)
None(Changes in accounting policies)
The Company has applied IFRS 9, “Financial Instruments” and 15, “Revenue from Contracts with
Customers”, from the first quarter of the fiscal year ending March 31, 2019. The effects this change will
have on business performance are minor.
(AUS#2014-09 Earnings from contracts with clients)
The Company has applied AUS#2014-09. The effects this change will have on business performance areminor.
Significant subsequent events
On May 9, 2019, Chiyoda Corporation (the "Company") at its meeting of the Board of Directors, approved
its financing plan including planned Third-Party allotment and borrowings. Payment from Mitsubishi
Corporation was made on July 1, 2019. For details on the outline please refer to “Notice Regarding Issuanceof Preferred Shares by Third-Party Allotment, Borrowing of Funds and Partial Amendment to Articles ofIncorporation“, released on May 9, 2019.

7

Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2019

Production, Contracts and Revenue
Apr. 1, 2018－Jun. 30, 2018

Engineering
LNG Plant
Gas Development/
Processing/Receiving
Refinery/Petrochemical/
Metal
Pharmaceutical/Biochemistry/
Chemical(Millions of yen)
Apr. 1, 2019－Jun. 30, 2019

New
contracts(ratio)Revenue(ratio)Backlog ofcontracts(ratio)New
contracts(ratio)Revenue(ratio)Backlog ofcontracts(ratio)76,482

92,823624,866

33,05386,258954,107(99.0%)(99.1%)(100.0%)(99.4%)(99.8%)(100.0%)9,964

73,027

276,976

12,19746,491

502,357(12.9%)(78.0%)(44.3%)(36.7%)(53.8%)(52.7%)

2,115

186

6,302

750

1,371

12,771(2.7%)(0.2%)(1.0%)(2.3%)(1.6%)(1.3%)

25,836

7,681

173,022

15,622

21,918303,464(33.4%)(8.2%)(27.7%)(47.0%)(25.3%)(31.8%)

2,221

6,055

32,273

1,103

7,173

17,728(2.9%)(6.5%)(5.2%)(3.3%)(8.3%)(1.9%)

Environment/New Energy/

34,665

4,627

126,626

1,304

7,265

110,726

Infrastructure(44.9%)(4.9%)(20.3%)(3.9%)(8.4%)(11.6%)

1,679

1,243

9,665

2,076

2,038

7,058

(2.2%)(1.3%)(1.5%)(6.2%)(2.4%)(0.7%)

802

802

－

212

212

－

(0.9%)(－)(0.2%)(－)

OthersOther Business(1.0%)
Total

Domestic
Overseas(0.6%)

77,28593,626

624,866

33,26686,471

954,107(100.0%)(100.0%)(100.0%)(100.0%)(100.0%)(100.0%)64,987

15,740212,375

15,62423,928208,825(84.1%)(16.8%)(34.0%)(47.0%)(27.7%)(21.9%)

12,29777,886412,491

17,64162,543745,282(15.9%)(83.2%)(66.0%)(53.0%)(72.3%)(78.1%)
Note1: The backlog of contracts for the three months ended June 30, 2019 includes an increase / decrease due to changes
in construction contracts acquired in prior fiscal years, and an increase / decrease due to foreign exchangetranslation adjustments.
Note2: The total amount of the above table does not include consumption tax.

8

Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2019

4. Others
Significant events on the ability to continue as a Going Concern
In the full year consolidated financial results of FY2018, the Chiyoda Group had an Operating loss of
199,795 million yen, Ordinary loss of 192,998 million yen and Loss attributable to owners of parent of
214,948 million yen due to significantly increased construction cost for ongoing LNG projects, notably the
Cameron LNG Project in Louisiana in the U.S. Due to the above, the Company expected deterioration of
cash flow and recognized events and conditions which might cause substantial doubts about the Company’s
ability to continue as a going concern.
Under these circumstances the medium-term management plan “Mirai Engineering” was revisited andvarious measurements taken, in addition, in order to secure necessary fund for its operation, the Company
had consistent communications with its major shareholder Mitsubishi Corporation and other stakeholders.
As a result, for substantial doubts were eliminated by the reached agreement to raise funds.
Based on the above, under the going concern assumption, the Company is viewed as continuing in businessfor the foreseeable future, as of filling date.

9