Translation

May 10, 2013

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2013
Company name: CHIYODA CORPORATION
Listing:First Section of the Tokyo Stock Exchange
Stock code:
6366
URL:
http://www.chiyoda-corp.com/
Representative: Shogo Shibuya, President & CEO
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, 2013
(from April 1, 2012 to March 31, 2013)(Percentages indicate year-on-yearchanges.)(1) Consolidated operating results
Net sales
Millions of yen

Operating income% Millions of yen

Ordinary income
Millions of% yen

Net income% Millions of yen%

Fiscal year ended
398,918 56.6
25,113
3.8
25,518
7.2
16,077 11.9
March 31, 2013
Fiscal year ended
254,675
3.1
24,19737.9
23,793 51.2
14,364 80.0
March 31, 2012
Note: comprehensive income: Fiscal year ended March 31, 2013: 25,082 million yen (57.9% increase year on year)
Fiscal year ended March 31, 2012: 15,884 million yen (111.7% increase year on year)

Net income per Fully diluted net Return on Equity Ratio of Ordinary Ratio of Operating
Income to Total
Income toshare
income per share(ROE)
Assets
Revenue
Yen
Fiscal year ended
March 31, 2013
Fiscal year ended
March 31, 2012

Yen

%

%

%

62.06

－

9.0

6.4

6.3

55.44

－

8.9

6.6

9.5

Reference: Equity in earnings of associated companies: Fiscal year ended March 31, 2013: 145 million yen,
Fiscal year ended March 31, 2012: 72 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, 2013

435,379

189,35643.3

727.24As of March 31, 2012

365,795

168,73746.0

648.95

Reference: Equity

As of March 31, 2013:

188,386 million yen

As of March 31, 2012:

168,120 million yen(3) Consolidated cash flows

Fiscal year ended
March 31, 2013
Fiscal year ended
March 31, 2012

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

14,147(5,257)(4,432)

180,229

55,615(9,140)(2,899)173,769

12. Cash dividends
Cash dividends per share
Record dateFiscal year ended
March 31, 2012
Fiscal year ended
March 31, 2013
Fiscal year ending
March 31, 2014
(Forecast)First
Secondquarter quarter

Payment of
Cash
Dividends

Third
Fiscalquarter year-end Annual

PayoutDividend on
Equity Ratio
Ratio(Consolidated) (Consolidated)

Yen

Yen

Millions of
yen

%

%

–

17.00

17.00

4,404

30.7

2.7

–

–

19.00

19.00

4,921

30.6

2.8

–

–

19.00

19.00

Yen

Yen

Yen

–

–

–
–

30.8

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2014
(from April 1, 2013 to March 31, 2014)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
March 31, 2014

Operating income Ordinary income

Millions ofyen%Millions ofyen%Millions ofyen%

470,000

17.8

24,000(4.4)

26,0001.9

Net income pershare

Net income
Millions of
yen

%

Yen

16,000 (0.5)

61.77

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: Yes
d. Restatements: None
(3) Number of issued shares (common stock)a. Number of shares issued at year-end (including treasury shares)
March 31, 2013
260,324,529 shares
March 31, 2012
260,324,529 sharesb. Number of treasury shares at year-end
March 31, 2013
1,279,223 shares
March 31, 2012
1,259,891 sharesc. Average number of shares during each of the following fiscal years
Year ended March 31, 2013
259,053,018 sharesYear ended March 31, 2012
259,086,839 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.

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5.
Qualitative Information related to Consolidated Performance(1) Qualitative Information on Business Performance
During the fiscal year under review, we saw a continuing sense of uncertainty in the world
economy caused by problems such as prolonged European debt crisis and the slowdown
in the economy of emerging countries such as China. Preparations for investment innumerous gas related facilities were now being encouraged by the enduring increase indemand for energy, the shale revolution and the tide of the shift to gas.
Many in Japan expect the new Japanese government, in the second half of the fiscal year,
to bailout deflation, to correct the yen’s appreciation by following flexible and dynamic
monetary policies for economic recovery, and to invest in renewable energy projects, inwhich investment has increased rapidly under the Feed-in Tariff scheme.
Faced with these conditions, while the Chiyoda Group continued to expand its global
operation and enhance its operation in the hydrocarbon field, mainly in LNG (Liquefied
Natural Gas), the Group also made inroads into new business fields such as infrastructure
and renewable energy. We placed particular focus on bidding activities, making the most of
our technological superiority in the market. We concluded contracts for EPC (Engineering,
Procurement, and Construction) works for oil refineries in Vietnam and the Middle East. We
won orders in Japan for the EPC of petroleum and petrochemical plants and large-scale
photovoltaic power generation systems. Additionally, we were awarded FEED (Front End
Engineering and Design) works for an LNG plant in Mozambique and a Floating Liquefied
Natural Gas (FLNG) plant in Indonesia.
The projects under execution are progressing as planned, including the LNG plants in
Papua New Guinea and Australia, some overseas projects for Japanese clients and LNG
receiving terminals in Japan. We are still seeking an improvement in profitability by steadily
executing backlog projects while reviewing the cost for completed works during thewarranty period.
The Group relocated the head office and integrated the company’s function to improve
work efficiency. As part of the integration process, we sold the land where the previous
headquarters was located.
Consolidated new orders for the fiscal year amounted to 402,919 million yen (34.2%
decrease year on year). The backlog and revenues were 900,618 million yen (7.1%
increase) and 398,918 million yen (56.6% increase) respectively.
The operating income amounted to 25,113 million yen (3.8% increase year on year),ordinary income to 25,518 million yen (7.2% increase), and net income resulted in 16,077
million yen (11.9% increase).
Highlights during this period for each segment are summarized hereunder:
LNG Plants/Gas and Power Utilities
The Group was awarded FEED contracts for an onshore natural gas liquefaction facility inMozambique and an FLNG facility in Indonesia. We are also focusing on study works forother FLNG projects. The EPC execution of an LNG plant in Papua New Guinea andanother LNG project in Australia is progressing as planned.
Our Qatari subsidiary is working on the maintenance and modification works for the
existing LNG and gas processing plants mainly built by the Group.
In Japan, several EPC works on LNG receiving terminals, the expansion/modification works
of existing plants and various FEED works are ongoing in parallel.
LNG is our priority business field and we are focusing on related works for other LNG
projects, which are onshore / offshore overseas / domestic.
Petroleum, Petrochemicals and Gas Chemicals
In addition to the EPC contract for a refinery and petrochemical complex in Vietnam, theGroup won an order for the EPC for refinery project in the Middle East. Our subsidiary in
Singapore signed an Enterprise Framework Agreement for downstream projects within Asia
3and started the related study works. EPC works are progressing favorably, including aheavy oil cracking unit in Saudi Arabia and petrochemical plant in Singapore, and EPsCm(Engineering, Procurement support and Construction management) services for heavy
crude oil upgrading facilities in Venezuela and for a petroleum refinery in Singapore areprogressing as well.
In Japan, we continued to perform the EPC work for a TransAlkylation Unit, the diagnosis
of existing facilities, maintenance and upgrading works, studies and construction works
aimed at improving the competitiveness of and energy saving in the facilities.
Industrial Machinery/Environment/ Chemicals and Other Fields
As part of the Mid-Term Business Plan to expand our business fields, we are developing
our business activities to include receiving orders and executing works for overseas anddomestic non-hydrocarbon projects.
EPC works for polycrystalline silicon plants in Malaysia, the product used for photovoltaic
cells, and EPC work for a nickel refinery in the Philippines were executed smoothly. We
have been reinforcing our efforts and developing our sales activities to meet the needs ofJapanese companies expanding their operations into Southeast Asia.
We have invested in an Italian company that is the only manufacturer of the solar collector
tubes used in the Molten Salt Parabolic Trough – Concentrated Solar Power (CSP) system,
and are accelerating our efforts in demonstrating the technology and developing thebusiness by building a demonstration plant in Italy. Additionally, we are expecting several
EPC contracts in the CSP solar power system.
In an effort to expand our recycled water-related business into the Middle East, related
works for a demonstration project on an energy-saving water recycling system in Saudi
Arabia were entrusted to a member of our group. In addition, we are strengthening ourposition in the transportation infrastructure field and, in collaboration with a capital alliancepartner, aim to introduce airport and railway projects into our portfolio.
In Japan, we won a number of EPC works for large-scale photovoltaic power generation
systems and are executing and expanding our sales activities by enhancing our group
operation in this field. We are also active in the pharmaceutical field, having completed theconstruction of pharmaceutical bio-formulation plant, and have executed EPC works forseveral facilities such as anti-cancer drugs, bulk vaccine and newly awarded In Vitro
Diagnostics.
We are developing hydrogen-related technology and demonstrating the effectiveness of
our own catalyst at our demonstration plant. Once proven, the transportation and storage oflarge volumes of hydrogen can be achieved safely and economically, which will pioneer theway to achieve a hydrogen–based society.

Outlook for the Next Fiscal Year
Chiyoda will continue to accelerate its sales activities and win contracts in areas where
Chiyoda can best leverage its technological advantages. We will also continue to work
diligently on the execution of existing overseas and domestic projects including the large
projects in Papua New Guinea and Australia.
In consideration of these circumstances, and assuming an exchange rate of ¥90/dollar, ourforecasts for the fiscal year ending March 31, 2014 include 600.0 billion yen in newconsolidated contracts and 470.0 billion yen in revenues. Our forecast for the consolidated
operating profit is 24.0 billion yen, consolidated ordinary income is 26.0 billion yen, and theconsolidated net income is 16.0 billion yen.

4(2) Analysis of Financial Condition
1) Assets, Liabilities and Net Assets
AssetsTotal assets increased by 69,584 million yen from the previous fiscal year. Current assets
increased by 62,728 million yen due to a 28,902 million yen increase in jointly controlled
assets of joint ventures and a 24,378 million yen increase in cash and deposits. Noncurrent
assets increased by 6,855 million yen due to the 10,236 million yen increase in investment
securities though property, plant and equipment decreased by 4,453 million yen.
Liabilities
Total liabilities increased by 48,965 million yen from the previous fiscal year due to a
31,557 million yen increase in notes payable and accounts payable for construction
contracts and a 2,677 million yen increase in advances received on uncompleted
construction contracts.
Net Assets
Net assets were 189,356 million yen as a result of an 11,641 million yen year-on- year
increase in retained earnings and an 8,646 million yen increase in accumulatedcomprehensive income. The equity ratio decreased 2.7 points year-on-year to 43.3%.
2) Cash Flow
Cash flow from operating activities
Net cash from operating activities showed a 14,147 million yen increase due to a 26,747
million yen record in income before income taxes and minority interests and an 8,954
million yen increase in working capital (total in notes and accounts receivable-trade, costs
on uncompleted construction contracts, notes and accounts payable-trade and advances
received on uncompleted construction contracts) although the 28,603 million yen increasein the jointly controlled assets of joint venture.
The jointly controlled assets of joint ventures are shown on the JV balance sheet as theassets controlled by Chiyoda whereas, in real terms, it is equivalent to the portion of thecurrent deposit balance under the JV names that is allocated to Chiyoda.
Cash flow from investing activities
Net cash from investing activities was a negative 5,257 million yen mainly due to 2,450
million yen expenditure invested for partnering and subsidiaries.
Cash flow from financing activities
Net cash from financing activities was a negative 4,432 million yen due to 4,397 million yen
paid in dividends and other factors.
As the result of the above factors, the account balance for the fiscal year for cash and cash
equivalent was 180,229 million yen which was a year-on- year increase of 6,460 million yen.
Cash Flow IndicesFiscal years ended
March 31

Equity ratio(%)

Debt repayment
period (Years)

2009
2010
2011
2012

40.7
45.3%
43.9%
46.0%

1.1
1.2
–
0.2

Interest coverage
ratio(Times)
26.3
34.5
–
267.9

2013

43.3%

0.7

68.6

Notes

(Shareholders’ equity– minority
interests)/Total
assetsInterest-bearing
debt/Net cash
provided byoperating activities

Net cash provided byoperatingactivities/Interest
expense5

Note: The debt repayment period and interest coverage ratio for the period ended March
31, 2011 are omitted due to there being a negative cash flow from operating activities.
(3) 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, whilebuilding a stronger financial base by which we can finance our business growth. We have
set the dividend at 19.0 yen per share for the fiscal year ended March 31, 2013. As for the
next fiscal year, we plan a year-end dividend per share of 19.0 yen.
(4) Business Risks
The following are significant risks that could affect Chiyoda Group business status,
finances, and our responses to such. These risks may have a material impact on investor
decisions related to investment risk. Recognizing these risks, the Chiyoda Group has set
risk reduction measures in place, as well as measures to minimize the impact, should such
events occur.
The risks discussed below are those we recognize as of the date of the filing of thisdocument.
(a) Changes in the Business Environment, Economic and Social Situation
Various factors, including changes in global economics and social situations and areassessment of energy policies in various countries, could require that adjustments bemade to clients’ investment plans, such as suspension or delay. These changes may havean impact on Chiyoda Group earnings. Changes in circumstances at the facilities ofsubcontractors, equipment and materials suppliers, and other service providers could affectour project execution plans, profitability, and ability to collect payments.
We continuously closely monitor global economic and social trends and their potential
impact on our business. We make a point of comprehensively studying the corporate
activities and status of service providers to avoid/minimize risk, confirming the feasibility of
projects, checking conditions on the ground, and identifying alternate service providers if
such becomes necessary.
(b) Earthquakes and natural disasters, terrorism, wars and other force majeure
eventsCountry risk (earthquakes and natural disasters, terrorism, wars) and/or other force
majeure events could result in direct or indirect damages to work sites or businesslocations including construction force safety issues, delayed delivery of equipment andmaterials to work sites, and/or suspension of field work, etc.
We place top priority on safety and gather and analyze information thoroughly to prevent
human suffering or harm. We have set up a permanent organization, the Crisis
Management Unit, and established a system to allow us to quickly to react to situations andto respond to emergencies. Under this system, we negotiate with clients or other interested
parties to secure contract terms that provide a rational division of liability for extension ofwork, damages or added costs. In this way, we are able to avoid or minimize risks fromforce majeure events.
(c) Cost of Equipment and Materials
We are exposed to the risk of sudden and severe escalation of equipment/materials costs,
due to the time lag between quotation at proposal and actual purchase order in plant
constructions. Specifically, the price of steel, which constitutes the main part of plant
construction, would be impacted severely by the rising price of raw materials such as coaland iron ore. It is similarly difficult to predict the future market prices of copper, nickel,
aluminum and zinc, etc.
We avoid these risks (or minimize the impact) by diversifying supply sources from all over
the world, placing orders as early as possible and maintaining alliances with major
6vendors/suppliers.
(d) Construction Workers/Equipment and Materials
Projects may experience delays if we cannot secure sufficient construction workers,
equipment and materials, or other things necessary for the project infrastructure.
Recovering from such delays may involve cost overruns.
We avoid this risk (or minimize the impact) by adopting various construction methods, assuch the modular construction in areas where labor is in short supply, and by establishing afoundation by cooperating with capable subcontractors, vendors and suppliers. If plant
construction work needs to be suspended due to strikes or other factors, we minimize therisk by taking the appropriate action together with clients and local authorities.
(e) Plant Accidents
There are always the risk of a major accident occurring in a plant that we have built or
which is under construction. If an accident occurs, and the Chiyoda Group is determined to
be at fault, the liability for damages could have a material impact on our earnings.
Naturally, we exercise all due care to prevent any unexpected situations by pursuing
peerless quality and safety management. We also avoid/minimize risks by procuring theappropriate insurances and by including a rational division of liabilities in contract termswith our clients.
(f) Exchange Rate Fluctuations
Some construction projects may involve payment settlements (subcontractors, vendors andsuppliers) in a currency not designated in counter value received from clients. In suchcases, exchange rate fluctuations can have an impact on earnings. The Chiyoda Groupavoids/minimizes exchange rate risk by reserving against construction payments in multiple
foreign currencies and by entering into exchange rate forward contracts.
(g) Compliance-related
For global plant construction work, we need to comply with the Construction Industry Act,
the Act against Delay in Payment of Subcontract Proceeds, Etc. to Subcontractors, theUnfair Competition Prevention Act, other trade-related acts, and acts and regulations
related to environment and against antisocial forces in both domestic and overseas sites.
The stakeholders’ demands for compliance issues, including information securities andexport controls are nowadays increasing and, once a problem occurs, it could haveconsiderable effect on the project execution or business operation of the Chiyoda Group.
In compliance with the latest regulations or rules on corporate operations, the Chiyoda
Group makes an effort in every phase to respond to the requests of stakeholders, including
concerned authorities and clients, both domestic and overseas, and try to avoid any risk by
incorporating such data into the work process based on “Code of Conduct of the Chiyoda
Group”.
(h)Information Security Risk
The Chiyoda Group manages the information of clients, subcontractors, equipment andmaterials suppliers and other service providers that is necessary to perform business, andalso possesses confidential information related to technologies, sales, and otherbusinesses. Many core corporate operations and business transactions have been
conducted by making full use of IT system at global subsidiaries. Chiyoda Groupbusinesses could be subject to system failure, information leaks and loss of importantbusiness information due to computer virus infections, external unauthorized access andcyber attack. The Chiyoda Group, including the main subsidiaries and global headquarters,
has obtained ISMS (Information Security Management System) certification and makes
every effort to carry out thorough information security management, such as information
security training and audits, and to take defensive steps by making business continuity plan.

76． Management Policies(1) Corporate Philosophy
Enhance our business in aiming for harmony between energy and the environment andcontribute to the sustainable development of a society as an integrated engineering
company through the use of our collective wisdom and painstakingly developed technology.
Every employee of the Chiyoda Group engages in our corporate activities with thisphilosophy in mind.
Review of "Engineering Excellence, Value Creation 2012"
The Medium-Term Management Plan - "Engineering Excellence, Value Creation 2012"(The Previous MT-Plan) was implemented for the period of 2009 - 2012 and was aimed toincrease the value of Chiyoda Group companies. In The Previous MT-Plan, a priority wasplaced on the following key strategies: 1) Further strengthening of the core business, 2)Balanced portfolio, 3) Strengthening of consolidated operation base, and 4) Creation ofactive corporate culture and human resources development.
Most of the above key strategies were substantially implemented during the period of The
Previous MT-Plan but it is deemed necessary to further accelerate the implementation of
key strategies to attain the required growth.
(2) Medium-Term Management Plan
The results of "Engineering Excellence, Value Creation 2012" were comprehensively
reviewed and, in consideration of such, The Medium-Term Management Plan has been
established with the slogan "Seize the moment, Open up new frontiers" with the objectiveof pursuing further growth of the Chiyoda Group for the period covering Fiscal Years 2013 2016 (The MT-Plan).
In order to establish The MT-Plan, changes occurring and the trend of influences in theexternal environment were first analyzed. We then set the direction in which we would liketo see the Group develop.

1) Changes and trends of the external environment
The analysis of the changes occurring and trend of influences in the external environment
showed that:
World energy demand is projected to further increase and changes are occurring in the
structure of energy demand (shift to gas and renewable energy). The developments inshale oil exploration have brought about a revitalization of the US market. Competition
between contractors is escalating, including those from Europe, the US and, particularly,
Korea. Chiyoda Group envisages that the number of projects being developed in harshareas of the world, such as in severely cold climates and in deep seas will increase.
Chiyoda has also observed that developing countries are emerging, national oil companies(NOC) are growing presence, and Japanese companies are accelerating expansion ofoverseas business.
2) Chiyoda Group 10 years on
The MT-Plan has been developed by 1) establishing a vision of how we want "Chiyoda
Group 10 years on" to be, and 2) establishing what Chiyoda needs to do in the first 4 years
for that vision to become a reality.
This led us to consider the future direction we need to take in order to expand our businessbased on three axes, 1) Operation, 2) Business Model and 3) Business Field/Area.

8

Axis: Operation
Chiyoda will pursue a "group operation style" for execution of regional medium / small size
projects. We will establish several Regional Headquarters (CRH) as the main overseas
bases of operation as well as setting up subsidiary offices operating under CRH, toencourage sharing the work among Chiyoda Group companies on a worldwide basis.
Axis: Business Model
This axis designates the style of business that the Chiyoda Group should pursue. It is
important that we secure a new sources of revenue from providing professional services ona reimbursable basis, developing and licensing our advanced technology, etc, as well as
continuing with our core business of undertaking lump sum turnkey / engineering,procurement and construction (LSTK/EPC) contracts. We will, in addition, look to invest in
the fields related to Chiyoda's core business and strongholds.
Axis: Business Field/Area
Chiyoda Group has long specialized in EPC contracts for onshore hydrocarbon projects.
The Chiyoda Group will seek to expand its business under this axis into offshore andupstream projects (related to exploration and treatment of oil and gas fields). Chiyoda
Group perceives that energy / social infrastructure will provide new sources of profit and will
also allow us to further explore business opportunities in our existing main market of Asia /the Middle East / Oceania as well as in Continental North America and Africa.
The vision of Chiyoda Group "10 years on" is based on the assumption that we will evolvein line with the above three axes and that the Chiyoda Group will have substantiallyachieved its targets of:
Evolution of the Chiyoda Group based on its core business as "Contractor", diversification
into new business fields and meeting the satisfaction of stakeholders with its cutting-edgeengineering
Further contributing to emerging and developing countries
Ingrained culture placing the utmost importance on the safety and health of employees
Diversification of business portfolio
Establishment of operational framework for sharing the work on a worldwide basis
A global operation basis is to be established with core operation centers, such as CGH(Chiyoda Global Headquarters) and CRH (Chiyoda Regional Headquarters), to facilitate
multiple operations. Global sharing of the work will be established in accordance with CGH
key strategy.
9

＜Function of each operation center＞
Chiyoda Global Headquarters (CGH)：
CGH will function as the headquarters of Chiyoda Group and provide advanced technology/ investment and professional engineering services.
Chiyoda Regional Headquarters (CRH)：
CRH will function as project management operation center for each region.
Global Engineering Satellite (GES)：
GES will provide engineering services and project management and will expand thecapacity of and the capability within the existing operation centers. Each operation center
will be able to exchange human resources flexibly.
3) Key Strategies under The MT-Plan
Chiyoda has established 5 key growth strategies and 5 key operating foundation strategies
as the key strategies under the MT-Plan for Fiscal Years 2013 - 2016.
Growth Strategies
The growth strategies aim to improve the base level of profit by expanding the business totake account of any prevailing external environmental trends (a shift to gas and a following
wind of increasing demand for LNG) considered to be favorable for Chiyoda businessbased on:expansion of Chiyoda group core business in the fields of gas and LNG projects,
expansion of business into offshore and upstream projects,
increase in the number of domestic and overseas small/medium size projects to beundertaken,energy/social infrastructure
Investment will be also accelerated in the fields related to Chiyoda's core business andstrongholds.
The main points of growth strategies are:Strengthening of core business
Pursuit of LNG project business opportunities to the maximum extent possible
Challenges for unconventional projects (FLNG, projects in cold / deep sea area & underharsh environments)
Expansion into new business fields, establishing new business model and new sources ofrevenue
Expansion of business field to offshore / upstream
Expansion of business fields to new energy and renewable energies
Upgrading of services to address clients' need (and assistance to commercialization)
Assistance to Japanese companies in their overseas expansion of businessAcceleration in establishing professional service business and provision of front-end
services to international oil companies (IOC) at overseas bases adjacent to IOC offices
Use of the economic vigor of emerging countries for the growth of the Chiyoda Group
Execution of medium and small size local projects
Shift to EPC project execution based on consolidated global operation
Acceleration of investment
Acceleration of investment in certain fields which are on the extension of Chiyoda's
business and strongholds
Operating Foundation Strategy
Consolidation of Chiyoda's "base" (global infrastructure) and"resources" (secure, develop
and reinforce the pool of human resources) will be continued as the operating foundation
for growth strategy. The main points the of operation foundation strategy are:10

Strengthening of competitiveness and execution capability
Improve competitiveness against competitors and continue to improve execution capability
Establishment and operation of data management infrastructure
Enhance utilization of data management (ERP) for efficient management and control ofoperation / Establish global platform for operation
Promotion of consolidated operation base and global operation
Establish framework of global human resource management for utilization of global
resource
Securing / development of human resources, optimization of allocation, and creation of alively and energetic working environment
Establish framework for human resource development / increase and exchange of project
key personnel within the group companies
Evolve into a company with a lively and energetic working environment regardless ofnationality, sex, age and so on

Strengthening of safety and risk management / establishment of culture prioritizing thehealth of employees
Proactively strengthen the risk management framework to respond to changes in theexternal environment and the times
Promote culture prioritizing the safety and health of employees(3) Quantitative Target (Profit Plan)
With the key measures in place based on the key strategies, Chiyoda will be able to pursue
diversification of its source of profit for stable growth. The target management index is set
at a consolidated net income of J. Yen 30 billion.
(4) Capital Plan / Investment Strategy
Chiyoda will provide a stable capital plan based on business performance. A high return ofequity (ROE of over 12%) will be sought and the dividend ratio of over 30% will be set.
In order to sustain further growth of the Chiyoda Group, the company will invest in areasthat will contribute to Chiyoda's growth, areas to consolidate the operating foundation andareas to expand and stabilize profit.
In order to continue Chiyoda's sustainable development, we plan to budget J. Yen 80 billion
for our investment strategy. Such capital will be distributed and invested prudently, flexibly
and efficiently in accordance with the actual progress of The MT-Plan and changes in thebusiness environment.
(5) Personnel Plan
The MT-Plan envisages that the Chiyoda group will have approximately 10,000 personnel
in the expanded domestic and overseas operation base as of Fiscal Year 2016.
With the centre of gravity of part of the work shifting from CGH to the group companies,
and with the progress of sharing the work among group companies in Japan and abroad,enhancement of the capability of the personnel at CGH will also be required.

11

7. Consolidated financial statements(1) Consolidated balance sheets (1/2)(Millions of yen)
As of March 31,
2012

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
Noncurrent 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
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

12

As of March 31,
2013

35,577
43,84059,95665,394

138,499
13,41912,98765,794
10,366(6)
320,478

122,899
15,295
13,162
94,696
11,806(3)
383,206

16,072(11,711)
4,360
1,220
(299)
920
5,201
(4,328)872
12,736109
19,001
4,600

11,711(5,508)
6,203
1,124
(314)
809
5,450
(3,786)
1,663
5,375
494
14,5476,770

18,1903,614(88)
21,71545,317
365,795

28,4272,508(80)
30,85452,172435,379

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

Liabilities
Current liabilities
Notes payable, accounts payable for construction contracts
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
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for treatment of PCB waste
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

13

As of March 31,
2012

As of March 31,
2013

86,211
10,0001,162
76,533
289
568
4,054
14,868
193,687

117,769
88
8,500
79,210
480
1,291
4,379
18,711
230,431

198
2,486
123
561
3,369
197,057

10,132
2,310
364
2,783
15,591
246,023

43,396
37,112
89,346(1,328)
168,527

43,396
37,112
100,988(1,349)180,1471,509
442(2,358)(407)
617
168,737
365,795

6,584
2,890
(1,235)
8,239
969
189,356
435,379

(2) Consolidated statement of income and comprehensive income(Consolidated statement of income)(Millions of yen)
Fiscal year ended
31, 2012

March(From April 1, 2011
to March 31, 2012)

Consolidated statements of (comprehensive) income
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
Dividends income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Total extraordinary income
Extraordinary loss
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Total extraordinary losses
Income before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Income before minority interests
Minority interests in income
Net income

14

Fiscal year ended
31, 2013

March(From April 1, 2012
to March 31, 2013)

254,675
215,783
38,891
14,69324,197398,918
356,40242,515
17,402
25,113

809
420
72
210
1,513

1,327
993
145
161
2,628

207
1,243
466
1,917
23,793

206
1,681
335
2,222
25,518

－

1,704

－

1,704

－
250
250
23,543
2,310
6,717
9,027
14,515151
14,364244
230
475
26,747
11,669(1,313)
10,356
16,391314
16,077

((Consolidated statement of comprehensive income)(Millions of yen)
Fiscal year ended
31, 2012

March(From April 1, 2011
to March 31, 2012)

Consolidated statements of comprehensive income
Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of theparentComprehensive income attributable to minority interests

15

Fiscal year ended
31, 2013

March(From April 1, 2012
to March 31, 2013)

14,515

16,391

1,738
97
(361)
(105)

5,075
2,448
1,081
85

1,368
15,884

8,690
25,082

15,761

24,723

123

358

(3) Consolidated statement of cash flows (1/2)(Millions of yen)
Fiscal year ended
2012

March 31,

(From April 1, 2011
to March 31, 2012)

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for warranties for completed
construction
Increase (decrease) in provision for loss on construction
contracts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Equity in (earnings) losses of affiliates
Loss (gain) on sales and retirement of noncurrent assets
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 venture
Increase (decrease) in accrued consumption taxes
Increase (decrease) in deposits received
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Net decrease (increase) in time deposits
Purchase of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Purchase of investment securities
Purchase of investments in subsidiaries
Payments of short-term loans receivableCollection of short-term loans receivable
Payments of long-term loans receivableCollection of long-term loans receivable
Other, net
Net cash provided by (used in) investing activities

16

Fiscal year ended
2013

March 31,

(From April 1, 2012
to March 31, 2013)

23,543
2,637
4
(894)

26,747
2,580
(11)
187

(489)

723

118
(320)
(1,230)
207
22
(72)
－
11,946
(796)

295
(185)
(2,321)
206
(125)
(145)
(1,460)(20,453)(1,714)(11,102)
14,23630,130992

3,678
22,776
(596)
1,640
649
65,960685(210)(10,820)
55,615(2,726)(28,603)
(444)
619
8,542
12,835
1,646
(203)
(130)
14,147(234)－(1,618)
1,725(1,380)－(7,561)
(57)
(85)

127
(2,400)(3,620)7,020(3,502)(66)(2,450)
－
－
81
(514)
35
32
(5,257)－－71(0)(9,140)Consolidated statement of cash flows (2/2)(Millions of yen)
Fiscal year ended
2012

March 31,

Fiscal year ended
2013

March 31,

(From April 1, 2012
to March 31, 2013)(From April 1, 2011
to March 31, 2012)

Net cash provided by (used in) financing activities
Proceeds from long-term loans payable－

10,000

Repayment of long-term loans payable－(10,000)(2,844)(4,397)

Cash dividends paid to minority shareholders

(7)

(7)

Other, net

(47)

(27)

(2,899)(4,432)

(424)

2,024

Net increase (decrease) in cash and cash equivalents

43,151

6,482

Cash and cash equivalents at beginning of period

130,618

173,769－(22)

173,769

180,229

Cash dividends paid

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Decrease in cash and cash equivalents resulting from exclusion ofsubsidiaries from consolidation
Cash and cash equivalents at end of period

17

8.

Production, Contracts and Sales
Millions of yen
Apr. 1, 2011 —Mar. 31, 2012

Apr. 1, 2012 —Mar. 31, 2013

New
contracts(ratio)Net sales(ratio)Backlog ofcontracts(ratio)New
contracts(ratio)Net sales(ratio)Backlog ofcontracts(ratio)605,587

247,849

839,170

397,215392,037

900,237

98.9%

97.3%

99.8%

98.6%

98.3%

100.0%

LNG plants

417,684
68.2%

91,912
36.1%

548,574
65.2%

47,24011.7%

128,36532.2%

521,16257.9%

Gas and power
utilities

46,316
7.6%

48,341
19.0%

117,839
14.0%

24,903
6.2%

72,953
18.3%

69,907
7.8%

682

75

607

1,822

1,785

645

Engineering

Gas chemicals
Petroleum andpetrochemicals
GeneralchemicalsIndustrial
machinery
Environment andothersOthers
Total
Domestic
Overseas

0.1%

0.0%

0.1%

0.4%

0.4%

0.1%

47,84340,71245,050200,590

42,710203,889

7.8%

16.0%

5.4%

49.8%

10.7%

22.6%

85,031
13.9%

44,19017.3%

108,475
12.9%

108,21426.9%

128,03832.1%

89,027
9.9%

1,551
0.2%

9,416
3.7%

279
0.0%

7,733
1.9%

2,313
0.6%

5,697
0.6%

6,477

13,201

18,344

6,711

15,870

9,908

1.1%

5.2%

2.2%

1.7%

4.0%

1.1%

6,942

6,826

1,773

5,704

6,881

380

1.1%

2.7%

0.2%

1.4%

1.7%

0.0%

612,530
100.0%

254,675
100.0%

840,943100.0%

402,919100.0%

398,918
100.0%

900,618
100.0%

115,580

94,925

168,299

111,734

150,800

127,775

18.9%

37.3%

20.0%

27.7%

37.8%

14.2%

496,949
81.1%

159,750
62.7%

672,64480.0%

291,185
72.3%

248,118
62.2%

772,84385.8%

18