Abridged Translation:
This translation is an abridged version prepared based on the statutory format inJapan for reference purpose only. If there is any discrepancy between thistranslation and the original Japanese version, the Japanese shall prevail.

May 12, 2017

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2017
Company name: CHIYODA CORPORATION
Listing:First Section of the Tokyo Stock Exchange
Stock code:
6366
URL:
http://www.chiyoda-corp.com/
Representative: Keiichi Nakagaki, Representative Director, Senior Executive Vice
President
Inquiries:
Nobuo Sekita, SL, Accounting Section
TEL: +81-45-225-7745 (from overseas)(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated performance for the fiscal year ended March 31, 2017(from April 1, 2016 to March 31, 2017)(1) Consolidated operating results
Net sales
Millions of yen(Percentages indicate year-on-year changes.)

Operating income% Millions of yen

Profit attributable toowners of parent

Ordinary incomeof% Millions
yen% Millions of yen

Fiscal year ended
603,745 (1.3)
15,680 (2.1)(3,080)March 31, 2017
Fiscal year ended
611,548 27.1
16,015 (25.4)
16,205 (27.2)
March 31, 2016
Note: comprehensive income: Fiscal year ended March 31, 2017: (42,391) million yen
Fiscal year ended March 31, 2016: (2,888) million yen%(41,116)-

3,375 (69.4)

Ratio of Ordinary Ratio of Operating
Net income per Fully diluted net Return on Equity Income to Total
Income to
(ROE)
share
income per share
Assets
Revenue
Yen
Fiscal year ended
March 31, 2017
Fiscal year ended
March 31, 2016

Yen

%

%

%

(158.76)－(23.1)

(0.6)

2.6

13.03

－

1.7

3.1

2.6

Reference: Equity in earnings of associated companies: Fiscal year ended March 31, 2017: (17,106) million yen
Fiscal year ended March 31, 2016: (1,318) million yen(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of March 31, 2017

461,431

157,12533.7

599.83As of March 31, 2016

528,219

202,12837.9

772.89Reference: Equity

As of March 31, 2017:

155,339 million yen

1

As of March 31, 2016:

200,166 million yen

(3) Consolidated cash flows
Net cash provided byoperating activities

Net cash used ininvesting activities

Net cash used infinancing activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen(4,375)

10,433(2,693)

138,889

55,526(26,750)(3,942)

136,919

Fiscal year ended
March 31, 2017
Fiscal year ended
March 31, 2016

2. Cash dividends
Cash dividends per share
Record dateFiscal year ended
March 31, 2016
Fiscal year ended
March 31, 2017
Fiscal year ending
March 31, 2018
(Forecast)First
quarter

Secondquarter

Third
Fiscalquarter year-end Annual

Yen

Yen

Yen

–

–

–
–

PayoutDividend on
Equity Ratio
Ratio(Consolidated) (Consolidated)

Payment of
Cash
Dividends

Yen

Yen

Millions of
yen

%

%

–

10.00

10.00

2,589

76.7

1.3

–

–

6.00

6.00

1,553

-

0.9

–

–

6.00

6.00

31.1

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2018(from April 1, 2017 to March 31, 2018)(Percentages indicate year-on-year changes.)
Profit attributable
Net income per
Net sales
Operating income Ordinary income
to owners of
shareparentMillions ofMillions ofMillions ofMillions of
yen
%
yen
%
yen
%
yen
%
Yen
Fiscal year ending
March 31, 2018

430,000 (28.8)

8,500 (45.8)

10,000

-

5,000

-

19.31

4. Others(1) Changes in Significant Subsidiaries during the Period (changes in specified
subsidiaries accompanying changes in the scope of consolidation): None
(2) 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
(3) Number of issued shares (common stock)a. Number of shares issued at year-end (including treasury shares)
March 31, 2017
260,324,529 shares
March 31, 2016
260,324,529 sharesb. Number of treasury shares at year-end
March 31, 2017
1,351,100 shares
March 31, 2016
1,340,062 sharesc. Average number of shares during each of the following fiscal years
Year ended March 31, 2017258,979,383 sharesYear ended March 31, 2016
258,990,754 shares* 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.

2

Table of Contents for the appendices1. Qualitative Information Related to Consolidated Performance(1) Details of Business Performance(2) Details of Financial Status(3) Outlook for the Next Fiscal Year(3) Dividend Policy & Current/next-Period Dividend Payment(4) Business Risks

4
(*1)
6
7
7

2. Basic Concept of Accounting Criteria

10

3. Consolidated Financial Statements(1) Consolidated Balance Sheets(2) Consolidated Statements of Income & Comprehensive Income
Consolidated Statements of Income
Consolidated Statements of Comprehensive Income(3) Consolidated Statements of Changes in Equity(4) Consolidated Statements of Cash Flows(5) Notes on Consolidated Financial Statements(Notes on Assumptions for a Going Concern)(Changes in Accounting Policies)(Segment Information and Others)(Information per Share)(Important Subsequent Event)
4. Production, Contracts and Sales
Note:

11
13

(*2)
15
(*2)

(*1)

(*1) Partially translated(*2) Not translated31. Analysis Related to Consolidated Business Performance and Financial Conditions(1) Analysis Related to Consolidated Business Performance
During the fiscal year under review, the global economy remained unstable given the effects
of developments including the protracted civil war in Syria and the repeated occurrence ofterrorist attacks in various parts of the world. These factors had adverse repercussions forthe global economy, in addition to the Brexit decision made by Britain in June and theelection of a new president of the United States in November. Operating conditions for
Chiyoda Corporation and its consolidated subsidiaries (hereinafter the “Chiyoda Group”)
remained difficult as these factors emerged in the global economy. Members of theOrganization of Petroleum Exporting Countries (OPEC) began cutting back on theirproduction, but oil prices cannot be declared to have entered a definite recovery phase. In
addition, the market is taking the general view that the supply-demand balance for liquefied
natural gas (LNG) has been loose in the short term. The tendency to delay final investment
decisions in large new projects is continuing as well. Looking at the Japanese economy,
expectations for the central government’s economic measures are rising. However, capital
investment plans are experiencing ups and downs.
In this environment, construction of large LNG projects, a core operating area for the
Chiyoda Group, progressed smoothly in various parts of the world including the UnitedStates, Australia and Russia. In addition, a new order arrived from Indonesia. The Chiyoda
Group maintained its advantages for future projects as well, taking strategic steps including
participating in the basic design of highly feasible expansion projects.
In the meantime, the Chiyoda Group posted non-operating expenses and an extraordinary
loss in the first nine months of the fiscal year under review in connection with EMASCHIYODA Subsea Limited (hereinafter “ECS”), a provider of engineering, procurement,
construction and installation (hereinafter “EPCI”) services related to subsea projects to which
Chiyoda Corporation (hereinafter the “Company”) contributed capital at the end of March
2016, because market conditions for the subsea projects grew significantly worse than theGroup had anticipated. For your information, ECS and its subsidiaries filed for the applicationof Chapter 11 of the Federal Bankruptcy Act of the United States in February 2017. They
are currently working to rebuild themselves.
Consequently, consolidated new contracts amounted to 351,780 million yen in the fiscal year
under review (down 12.8% from the previous fiscal year). The consolidated contract backlog
came to 876,819 million yen (down 24.7% year on year). Consolidated net sales ofcompleted construction contracts reached 603,745 million yen (down 1.3% year on year).
Consolidated operating income amounted to 15,680 million yen (down 2.1% year on year).
The consolidated ordinary loss reached 3,080 million yen (compared with consolidated
ordinary income of 16,205 million yen posted in the previous fiscal year). The consolidated
loss attributable to owners of parent came to 41,116 million yen (compared with consolidated
profit attributable to owners of parent of 3,375 million yen posted in the previous fiscal year).
The operating income was lower than the revised forecast announced on February 9, 2017
due to expected increase in construction costs for some overseas projects. The ordinary
income and the profit attributable to owners of parent were also lower than the revised
forecast, mainly due to investment losses, goodwill impairment and increased reversal ofthe differed tax assets reflecting review of Chiyoda’s future taxable income in Japan.
The Chiyoda Group takes great regret in reporting these business results, which aresubstantially lower than the forecasts announced at the beginning of the fiscal year underreview. The Group has resolved to make greater efforts to assess investment projects andmanage Group companies thoroughly so that it can regain the trust of its stakeholders.
The summary of operations for the engineering business, the reportable segment of theCompany, is as follows.

4

LNG Plants/Other Gas Related Work
Overseas, the Chiyoda Group completed front-end engineering and design (FEED) work for
LNG plants in the United States and Russia. The Group is now earnestly performing
engineering, procurement and construction (EPC) work for LNG plants in Australia, theUnited States, Russia and Indonesia. In addition, the Group is continuing pre-contract workin Mozambique, where it was selected as an EPC contractor. A Group companies overseas
is also performing engineering, procurement and construction management (EPCM) work inprojects for modifying and revamping LNG and gas processing plants that have been built
by the Company based on long-term blanket contracts with clients, in addition to EPC workat helium production facilities in Qatar.
In Japan, the Chiyoda Group is performing EPC work in projects for the modification andrevamping of the LNG receiving terminals built by the Company.
Refinery/Petrochemicals/Metal
In the refinery and petrochemicals fields overseas, the Chiyoda Group completed an oil
refinery project in Qatar in December 2016. EPC work for an oil refinery and petrochemicalcomplex was also finished in Vietnam. Among the projects currently under execution,engineering, procurement, construction and commissioning (EPCC) work for a residue fluid
catalytic cracking (RFCC) project in Malaysia is progressing favorably. A Group company inSoutheast Asia is also performing EPC work for petrochemical tank terminal facilities in
Malaysia at present. Moreover, the Chiyoda Group is undertaking project management inconnection with refinery, chemical production and other downstream projects in Asia basedon long-term contracts.
In Japan, the Chiyoda Group is continuing to perform work for petroleum companies,
including the modification of existing facilities in accordance with the Basic Act for National
Resilience Contributing to Preventing and Mitigating Disasters for Developing Resilience inthe Lives of the Citizenry and work for improving the energy efficiency and preventing thesuperannuation of petrochemical production and other existing facilities, in addition to EPC
work aimed at facilitating inter-refinery cooperation and optimizing the configuration ofrefineries.
In the metal field, the Chiyoda Group is performing EPC work for a titanium sponge plant in
Saudi Arabia.
Pharmaceuticals/Biochemistry/General Chemistry/Environment/Infrastructure
In the transportation infrastructure field, the Chiyoda Group is performing EPC work for a
new international airport in Mongolia and the New Bohol Airport in the Philippines.
In the environment field, the Chiyoda Group concluded a contract for licensing Chiyoda
Thoroughbred 121 (hereinafter “CT-121”) Process, flue gas desulfurization technology, forcoal-fired power plants in India, a country undergoing remarkable economic development,
and is taking steps for concluding contracts for specific projects at present. In Japan, theGroup is accepting orders for EPC work for flue gas desulfurization facilities at coal-fired
power plants and performing such work as well. In addition to these activities, the Group is
accepting orders and performing EPC work for large-scale photovoltaic power plants(hereinafter “mega solar plants”) in various parts of the country.
In other fields such as food, pharmaceuticals and biochemistry, the Chiyoda Group is
performing EPC work for food factories that comply with the latest food safety and hygiene
standards, research institutes, facilities capable of handling high-potency pharmacologically
active agents and therapeutic antibodies, including cutting-edge injection production facilities,
drug substance plants and bio-medicine manufacturing facilities. Moreover, the Chiyoda
Group is executing a project for demonstration plant factories that use artificial light only in
Dubai, the United Arab Emirates. The Group will continue its efforts to promote theintroduction of this equipment in markets centered on the Middle East and Russia going
forward. In another area related to the environment, the Group is performing EPC work
based on a contract it concluded for constructing a demonstration plant for bio-jet and diesel
fuel production.
5

New Business Fields
In offshore and upstream fields, ECS and its subsidiaries filed for the application of Chapter
11 of the Federal Bankruptcy Act of the United States and launched activities for theirreconstruction as reported above. In the meantime, Xodus Group (Holdings) Ltd., a groupcompany in Britain, is continuing to provide design, consulting and other services associatedwith the construction of offshore development facilities and the safe removal of deteriorated
facilities to companies developing natural resources and other clients. The Chiyoda Grouptakes the view that these fields will also undergo further development in the medium andlong terms from the viewpoint of stable energy supply. The Chiyoda Group will continue
paying attention to these business fields based on the philosophy of aiming for harmony
between energy and the environment adopted by the Company.
In another field related to an alternative form of energy, the Chiyoda Group is planning ademonstration project for using hydrogen procured in Asia as a fuel at power plants in Japanfor scheduled implementation in 2020. The project is aimed at commercializing a hydrogen
supply chain that uses technologies for massive hydrogen storage and transportation
developed by the Company toward the goal of building a society based on hydrogen energy.
In the field related to digital-innovation, the Company established a business allianceagreement with GRID, Inc., one of the leaders in the field of AI technologies in Japan, andstarted studies for developing productivity of the plants using AI technologies. The Company
has started demonstration projects of AI technology application for several clients.
(2) Analysis of Financial Condition(Cash Flow Indices)
Cash Flow IndicesFiscal years ended
March 31
2013
2014
2015

Equity ratio(%)
43.3 %
41.3 %
40.0 %

Debt repayment period(Years)0.7––

Interest coverage ratio(Times)
68.6
–
–

2016

37.9 %

0.2

256.9

2017

33.7 %

--

--

Notes

(Shareholders’Interest-bearing debt / Net
equity – minority
Net cash provided by operating
cash provided by operatinginterests) / Total
activities / Interest expenseactivities
assetsNote: The debt repayment period and interest coverage ratio for the period both ended March 31, 2014
and 2015 are omitted due to there being a negative cash flow from operating activities.
(3) Outlook for the Next Fiscal Year
1) Preview of Next Fiscal YearThe consolidated backlog of contracts currently stands at approximately 900 billion yen.
The Chiyoda Group will steadily advance construction projects on hand, including LNG
projects in progress in Australia, the United States, Russia and Indonesia, under slightly
delayed new investment in large-scale LNG projects. The Chiyoda Group will also focus
on fields such as pharmaceuticals, the environment and alternative forms of energy.
Under these operating conditions, the Company forecasts that it will achieve consolidated
new contracts of 350,000 million yen, consolidated net sales of completed construction
contracts of 430,000 million yen, consolidated operating income of 8,500 million yen,consolidated ordinary income of 10,000 million yen and consolidated profit attributable toowners of parent of 5,000 million yen in the fiscal year ending March 31, 2018, assuming
an exchange rate of 110 yen per U.S. dollar.

62) Management Policy,
In the energy field, a sector well served by the businesses of the Chiyoda Group, major
capital investments are planned by customers in several regions, responding to thepredicted increase in demand for energy over the medium- to long-term and taking
advantage of the shale “revolution” and the global shift to gas.
However, the timing of such investment decisions in large-scale projects has become
more difficult to predict in the short-term, due to the continued adverse effects of LNG
oversupply and the weak price of crude oil. Geopolitical instability adds another elementof uncertainty to long-term investment planning.
Thus, appropriate actions by management, judging the effects of these variables areneeded at all times. Despite the harsh conditions, the Chiyoda Group will continue to offer
the services required by industry and the values sought by society, to leverage its
advantages while taking into account the impact of these difficult times.
To that end, the Chiyoda Group has created policy priorities.
Under the previous Medium Term Management Plan (fiscal 2013-2016), the Chiyoda
Group faced a drastic change in business environment which prevented the Company
from achieving its stated goals. However, in the final year of the Plan, the Chiyoda Groupwon a major new contract in Indonesia in the core LNG field, illustrating that while theCompany is working on several large-scale projects underway in Australia, the UnitedStates & Russia, the Group is constantly reinforcing its operational capabilities ofexecuting multiple large projects worldwide simultaneously and smoothly.
For example, the Group has also won contracts in new fields such as bio-jet fuel andother environment-related fields plus for facilities in regenerative medicine and other life
sciences. Other diverse operations include a revolutionary approach to hydrogen supply
chain management and new initiatives for cutting edge technologies that employ artificial
intelligence and Big Data techniques.
In the fiscal year 2017 under the Chiyoda philosophy of “Harmony between Energy andthe Environment”, a new Medium Term Management Plan is being developed, including
the establishment of an energy value chain business, centered on Chiyoda’s core LNG
activities. In launching this new entity, the Group looks to strengthen the risk management
system, develop a more diverse human resource culture and strengthen the consolidated
management system, all intended to enhance Chiyoda’s corporate value. Critically, theGroup will reinforce the corporate governance system, allowing prompt and bold decision
making, in a fair and transparent manner, while respecting the needs of shareholders,clients, employees, local communities and other stakeholders.

(4) Dividend Policy and Current/Next-Period Dividend Payments
Our basic policy for dividends is set to meet a payout ratio of 30% or above of consolidated
net income. This policy supports our desire to return profits to our shareholders, while building
a stronger financial base by which we can finance our business growth.
We have set the dividend at 6.0 yen per share for the fiscal year ended March 31, 2017 after
having set aside the loss caused by investment. As for the next fiscal year, we plan a yearend dividend per share of 6.0 yen.
(5) Business Risks
Business risks may significantly impact the Chiyoda Group’s business operations andfinances. These risks have the potential to impact investor decision making. Recognizingthese risks, the Group has implemented risk mitigation plans to minimize consequences
when such events occur.
The risks below are those we recognize as of the date of the fiscal year ended.
(a) Changes in the Business Environment; Economic, Social and Political Factors
Various factors may require that modifications be made to clients’ investment plans,
project suspension, delay or review. These factors include changes in global economic,
7

social and political environments, economic sanctions, changes in home country energy
policies and commodity prices such as oil, LNG and metal resources prices: All the factors
may affect the Group earnings. Changes in economic, social and political environments
for clients, joint venture partners, subcontractors, suppliers and service providers could
affect the Group’s project execution plans, profitability and, ultimately, its financial strength.
The Group monitors global economic and social trends for a potential impact on businessand strives to reduce such risk through rigorous contract negotiations. Due diligence is
executed for subcontractors, vendors and service providers and remedial action in the
supply chain is taken if necessary.
(b) Earthquakes and Natural Disasters, Terrorism, Wars and Other Force Majeure
EventsForce Majeure events such as earthquakes, natural disasters, terrorism and wars havethe potential to materially impact project sites or business locations. Disruption issues may
include personnel life crisis, delays in equipment and materials delivery and/or suspensionof field work.
The Group puts life and safety first and has the Crisis Management Unit, to compile andanalyze information to prevent human suffering or harm. The Group has established, andis reinforcing, the crisis management system, which advocates the employment ofprofessional security advisors in the regions requiring particular attention. Additionally,
the Group maintains the risk management system to rapidly react to various situations
and to respond to an emergency immediately, including consulting with the clients and/or
the parties concerned to minimize force majeure risk.
The Group has formulated a Business Continuity Plan (BCP) for unexpected events
including as a massive earthquake to act smoothly in the initial stage and execute priority
tasks. In that way, the Group has been prepared to ensure business continuity byconducting emergency response training.
(c) Fluctuations in Equipment and Material Costs
Under certain contracts, the Group is exposed to material/equipment cost fluctuation risk
due to the time difference between plant or material quotation and purchase. Specificallythe price of steel, which constitutes a major part of plant construction, could be severely
impacted by a rise in commodity prices such as coal and iron ore. Future market prices ofcopper, nickel, aluminum and zinc are similarly unpredictable.
The Group avoids such risks (or minimizes the impact) by diversifying supply sources,
placing early orders, maintaining alliances with major vendors/suppliers and identifying
market trends.
(d) Possible Shortages of Construction Workers/Equipment and Materials
A project may experience a delay and a cost impact if sufficient construction labor,
equipment and materials or other resources required for a project cannot be sufficiently
procured.
The Group avoids such risk (or minimizes the impact) by applying diverse construction
methods including modular construction, in the areas where materials and/or adequately
qualified labor are scarce and by establishing communication and collaboration withreliable subcontractors, vendors and suppliers. If a plant’s construction is suspended due
to labor disputes and the like, the Group minimizes risk by taking appropriate action incooperation with clients and the local authorities.
(e) Plant Accidents
Safety risk, the consequences of which could be serious for the Group’s operating
capability, is inherent in the construction industry.
8Safety is of paramount importance to the Group, reinforced by the maxim “Safety is theCore Value”. Through comprehensive Risk Identification and Management procedures,
reinforced by close collaboration with clients, designers, subcontractors and vendors, all
the risks are identified at every stage of project delivery, from feasibility through designand construction, and measures to negate or mitigate the identified risks are implemented.
(f) Exchange Rate Fluctuations
Some construction projects may involve payment settlements (subcontractors, vendors
and suppliers) in a currency that does not correspond with the currency received from theclient for the work. In such cases, exchange rate fluctuations can have an impact onearnings. The Group avoids/minimizes exchange rate risk by reserving construction
payments against such risk in multiple foreign currencies and by entering into exchange
rate forward contracts.
(g) Compliance-related Risk
The Group’s global operations are required to comply with local laws, acts and regulationsin the respective countries and regions where its head office, subsidiaries, businessoffices and construction execution sites are located, both at home and abroad. Penalties
or suspicious action resulting from non-compliance could have a serious impact on a
project’s execution or the business operation of the Group.
To prevent and/or minimize such compliance-related risk, the Group runs training courses
for employees including assembled induction and e-learning. Those are intended for themto understand and strictly observe the updated laws, acts, regulations or rules related toits business operations including those for human rights and anti-bribery. The Group also
makes every effort to comprehend the present trend of stakeholders including theauthorities concerned and clients, both at home and abroad. Additionally, the Group has
incorporated compliance response in its operating processes based on its Code of
Conduct by establishing a Compliance Committee under the direct control of the
Executive Committee and the Compliance Committee of the Chiyoda Group under its wing,
consisting of Group company representatives.
(h) Information Security Risk
The Group takes great care in managing information obtained from clients, subcontractors,
equipment and materials suppliers and other service providers. The information isnecessary in the performance of its business. The Group also possesses confidential
information related to technologies, sales, and other businesses. Many core corporate
operations and business transactions are conducted by making full use of the IT systems
at global subsidiaries. The Group operations are subject to system failure, information
leakage and loss of important business information due to infection by computer viruses,
external unauthorized access and cyber-attacks. The Group, including the main
subsidiaries and global headquarters, holds an ISMS (Information Security Management
System) certificate and performs competent information security management which
includes training, auditing, and defensive and minimizing measures under its business
continuity plan.
(i) Business Investment Risk
The Group makes business investment to pursue the growth strategy such as theestablishment of a new company or the purchase of the existing company to construct a
new business model including offshore and upstream fields. The Group is exposed toseveral risks, such as changes in the business environment, lower earnings obtained thanplanned, a downturn in business and incurring extra costs. Prior to deciding on business
investment, the Group does assess the feasibility through our standards and rules. After9

making an investment, the Group regularly monitors the progress in the business andprovide various types of support as necessary, to avoid or minimize any loss.

2. Basic Concept of Accounting Criteria
The Chiyoda Group presents its consolidated financial statements based on Japanese
accounting criteria in consideration for comparison with those for the previous fiscal term as
well as comparison with the other companies' financial statements. The Group will follow
international accounting criteria in due course after examining the trend of Japaneseengineering contractors.

10

3.

Consolidated financial statements(1) Consolidated balance sheets (1/2)

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed
construction contracts
Securities
Costs on uncompleted construction contracts
Deferred tax assets
Jointly controlled assets of joint venture
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and vehicles
Accumulated depreciation
Machinery and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Net defined benefit asset
Differed Tax Assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

11

As of March
31, 2016(Millions of yen)
As of March
31, 2017

137,715

135,373

69,29659,865

6,999
35,053
12,889179,360
16,000(2,285)455,030

7,999
24,2209,586
164,283
25,457(1,541)
425,244

13,887(6,750)
7,137
635
(348)
287
7,439
(6,210)
1,229
5,266
22
13,942
11,06813,892(7,265)
6,627
547
(328)
218
7,236
(6,212)
1,023
5,266
22
13,1588,098

43,071
94
2,894
2,498
(379)
48,17873,189528,219

7,707
84
4,967
2,405
(336)
14,83036,086461,331

Consolidated balance sheets (2/2)(Millions of yen)

Liabilities
Current liabilities
Notes payable, accounts payable for construction
contracts
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Advances received on uncompleted construction contracts
Provision for warranties for completed construction
Provision for loss on construction contracts
Provision for bonuses
Provision for loss on business of subsidiaries
and associates
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for treatment of PCB waste
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

12

As of March
31, 2016

As of March
31, 2017

150,078

160,096

333
5
2,841
135,667
337
3,160
3,527

203
10,004668
85,187
319
3,315
3,156

--

22,91915,155311,106

15,311
301,182

10,009
340
2,134
2,500
14,985
326,091

4
338
1,522
1,158
3,023
304,206

43,396
37,112
115,839(1,422)
194,926

43,396
37,112
72,132(1,431)
151,2102,386(1,618)
4,171
300
5,240
1,961
202,128
528,219

379
499
2,656
592
4,128
1,785
157,125
461,331(2) Consolidated statement of income and comprehensive income(Consolidated statement of income)(Millions of yen)

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 income
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using
equity method
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary losses
Provision for loss on business of subsidiaries
and associates
Loss on sales of subsidiaries securities
Impairment loss
Valuation loss of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

13

Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

(From April 1, 2015
to March 31, 2016)(From April 1, 2016
to March 31, 2017)

611,548
570,028
41,52025,50516,015603,745565,521
38,22322,543
15,680

1,472
1,011
180
2,664

1,554
933
357
2,844

216

209

1,318

17,106

665
274
2,474
16,2053,455
834
21,605(3,080)

2,686
2,686

1,937
1,937

－

22,919

－
4,431
－
4,431
14,4608,708
2,255
10,963
3,496
121
3,375

1,146
766
393
25,225(26,368)
15,026(143)
14,883(41,251)(135)(41,116)

(Consolidated statement of comprehensive income)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

14(Millions of yen)
Fiscal year ended
March 31, 2016

Fiscal year ended
March 31, 2017

(From April 1, 2015
to March 31, 2016)(From April 1, 2016
to March 31, 2017)

3,496(41,251)(4,831)441(1,135)(775)(2,006)2,129(1,102)291(6,385)(2,888)(1,139)(42,391)

(44)

(162)

(83)

(2,844)(451)(42,228)

(4) Consolidated statement of cash flows (1/2)(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in provision for loss on construction
contracts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for loss on business of
subsidiaries and associates
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of (profit) loss of entities accounted for using equity
methodLoss (gain) on valuation of investment securities
Loss (gain) on sales of investment securities
Loss (gain) on sales of subsidiaries securities
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in costs on uncompleted construction
contracts
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received on uncompleted
construction contracts
Decrease (increase) in accounts receivable - other
Decrease (increase) in jointly controlled asset of joint
ventureOther, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities

15

Fiscal year ended
March 31, 2016
(From April 1, 2015
to March 31, 2016)

Fiscal year ended
March 31, 2017
(From April 1, 2016
to March 31, 2017)14,460
3,589
4,431
1,256
2,387

(26,368)
3,643
766
547
(701)

(21)

(15)

(377)

(368)

(826)

-

154

22,919(117)(2,484)
216
813

(428)
(2,487)
209
(186)

1,318

17,106－(2,686)-393(1,937)
1,146(16,491)

24,543

10,786

13,293

11,401

12,184(48,668)

5,158(1,901)

3,501

13,666(8,401)55,746
1,671(218)(1,673)55,526

376
8,194
1,458
(205)
(13,821)(4,375)(7,739)(806)(1,801)(21,998)
5,463
(382)
489
25
(26,750)

3,043
(649)
(1,451)(351)
15,554(12,188)
6,382
95
10,4338,141

Consolidated statement of cash flows (2/2)(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

16

Fiscal year ended
March 31, 2016
(From April 1, 2015
to March 31, 2016)

Fiscal year ended
March 31, 2017
(From April 1, 2016
to March 31, 2017)

(498)
(4)
(3,362)(76)(3,942)(1,159)23,673
113,246
136,919(50)(3)(2,586)(52)(2,693)(1,395)
1,969
136,919
138,889

4.

Production, Contracts and Sales
Millions of yen
From Apr. 1, 2015
From Apr. 1, 2016
To Mar. 31, 2016
To Mar. 31, 2017
New
Backlog ofNew
Backlog of
Net sales
Net sales
contracts
contracts contracts
contracts(ratio)(ratio)(ratio)(ratio)(ratio)(ratio)399,861

348,279

600,244876,819

99.1%

99.4%

100.0%

99.0%

99.4%

100.0%LNG Plant

155,175

366,766

860,305

190,252

415,199605,274

38.5%

60.0%

73.8%

54.1%

68.8%

69.0%

Gas Development/
Processing/Receiving
Refinery/Petrochemical/
Metal
Pharmaceutical/Biochemistry/
ChemicalEnvironment/New Energy/
Infrastructure

11,3942.8%

22,1393.6%

19,738
1.7%

6,825
1.9%

14,353
2.4%

11,7391.4%

161,50240.0%

138,81122.7%

198,62217.0%

57,31616.3%

101,133
16.7%

153,548
17.5%

32,67931,03532,37735,70529,66335,312

8.1%

5.1%

2.8%

10.2%

4.9%

4.0%

32,12843,17850,85647,26833,592

63,402

8.0%

7.1%

4.4%

13.4%

5.6%

7.2%

6,981
1.7%

5,762
0.9%

3,090
0.3%

10,910
3.1%

6,301
1.0%

7,540
0.9%

3,733
0.9%

3,855
0.6%

-

3,501
1.0%

3,501
0.6%

-

403,595

611,548 1,164,991

351,780

603,745876,819100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

107,85626.7%

111,46418.2%

96,1048.2%

130,49237.1%

102,43417.0%

122,04613.9%

295,738

500,084 1,068,887

221,287

501,311754,772

62.9%

83.0%

86.1%

Engineering

OthersOther Business
Total
Domestic
Overseas

73.3%

607,693 1,164,991

81.8%

17

91.8%