Translation

August 9, 2016

Consolidated Financial Results
for the Three Months Ended June 30, 2016
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)
Scheduled date to file Quarterly Report: August 10, 2016
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, 2016
(1) Consolidated operating results(Percentages indicate year-on-year changes)
Profit attributable toOperating income
Ordinary income
owners of parent
Millions ofMillions ofMillions of% yen% yen% yen%Net sales
Millions ofyen

For the three months
133,6396.1
3,525(11.4)
8,926 154.1
ended June 30, 2016
For the three months
125,946 43.6
3,979
250.4
3,512 104.9
ended June 30, 2015
Note: Comprehensive Income: the three months ended June 30, 2016: 419 million yen / (80.3)%
the three months ended June 30, 2015: 2,132 million yen / 45.5%

For the three months
ended June 30, 2016
For the three months
ended June 30, 2015

Net income per share

Fully diluted net
income per share

YenYen

14.33

-7.79

-

3,712

2,017 584.6(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

As of June 30, 2016

489,293

199,94240.5

As of March 31, 2016

528,219

202,128

37.9

Reference: Equity

As of June 30, 2016: 197,999million yen

As of March 31, 2016:200,166 million yen

184.0

2. Cash dividends
Cash dividends per share
Record date

First quarter

Second quarter

Third quarter

Fiscal year-endYenYen

Yen

Yen

Yen---

10.00

10.00

--

6.00

6.00

Fiscal year ended
March 31, 2016
Fiscal year ending
March 31, 2017
Fiscal year ending
March 31, 2017
(Forecast)

Annual-Note: Revision to the latest forecast announcement 2016: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2017 (fromApril 1, 2016 to March 31, 2017)(Percentages indicate year-on-year changes.)
Profit attributable Net income per
Operating income Ordinary income
to owners ofshareparentNet sales
Millions ofyen
Fiscal year ending
March 31, 2017%

Millions ofyen%

550,000 (10.1)

18,000

12.4

Millions ofyen%Millions ofyen%

Yen

14,000 (13.6)

5,000

48.1

19.31

Note: Revision to the latest forecast announcement 2016: None

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 FinancialStatements: 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, 2016
260,324,529 shares
As of March 31, 2016
260,324,529 sharesb. Number of treasury stock at the end of the period
As of June 30, 2016
1,341,946 shares
As of March 31, 2016
1,340,062 sharesc. Average number of shares during the period
For the three months ended June 30, 2016
258,982,866 shares
For the three months ended June 30, 2015
258,998,485 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.

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5.
Qualitative Information Related to Consolidated Performance
Qualitative Information on Business Performance
During the first three months of this fiscal year, there was a considerable uncertainty in the global
economic environment. Emerging market economies saw slower growth, a number of global terrorist
attacks occurred, and there was a concern over the impact that the United Kingdom’s exit from theEuropean Union would have on the European and global economies. Although our clients were cautious
about proceeding with their investment plans due to the current low oil price, several investment plans
to satisfy local domestic demand, in particular those related to natural gas development, are still underconsideration. The Japanese economy remains uncertain; while the government is implementing its
economics plans, there are still some concerns regarding the volatile fluctuations in the Japanese yen.
Under such circumstances and in order to recover its performance this fiscal year, the Group
concentrated on initiatives designed to create sustainable growth by accelerating the Group’s growthstrategy and improving its corporate systems, now in the final year of its four-year Medium-Term
Management Plan. In the LNG field, the Group’s core business, the Group continues to execute large
projects throughout the world. The Group was proactive in engaging in new opportunities, even thoughsome of these opportunities have been postponed.
In the offshore and upstream field, the Group started operation of EMAS CHIYODA Subsea which canimplement Engineering, Procurement, Construction and Installation (EPCI) for subsea projects.
Together with the Xodus Group, an international energy consultancy, the Group was able to provide avalue chain for natural resource development in offshore and upstream projects involving all the phasesfrom design to EPCI, including operation and maintenance.
Consolidated new contracts for the period amounted to 58,419 million yen (23.5% increase comparedto the same period of the previous fiscal year). The backlog and revenue were 1,107,360 million yen(13.2% decrease from the end of the previous fiscal year), and 1,336,390 million yen (6.1% increase
year on year) respectively. The operating income amounted to 3,525 million yen (11.4% decrease),
ordinary income to 8,926 million yen (154.1% increase), and profit attributable to owners of parent
resulted in 3,712 million yen (84.0% increase).
Highlights in this period for each segment are summarized below.
LNG Plants/Other Gas Related Works
The Engineering, Procurement and Construction (EPC) execution of LNG plants in the USA, Russia andAustralia and Front End Engineering and Design (FEED) work for LNG plants in Mozambique and theUSA are in progress as planned. In addition, the Group is currently negotiating with a client to proceedwith an LNG expansion project in Indonesia.
In Mozambique, where the Group was selected as an EPC contractor for an LNG plant last year, theGroup is executing pre-EPC work. The Group has also completed FEED work for the LNG Canada andis now implementing pre-FID work there. Meanwhile, the Group Company in Qatar is carrying out EPC
work for helium recovery facilities and the Engineering, Procurement and Construction Management(EPCM) work for the maintenance and modification of existing LNG and gas processing plants built
mainly by the Group.
Refinery/Petrochemical/Metals
Engineering, Procurement, Construction and Commissioning (EPCC) is underway for a Residue Fluid
Catalytic Cracking (RFCC) project in Malaysia. EPC is underway for a refinery and petrochemicalcomplex in Vietnam and a refinery project in Qatar. Additionally, the Group Company in Singapore isperforming project management under an Enterprise Framework Agreement for downstream projects
within Asia. In the metals field, the Group is executing EPC work for a Titanium Sponge plant in Saudi
Arabia.
In Japan, the Group is continuing to perform EPC work for the modification of client’s existing facilities
in case of a possible catastrophic event, and to keep these facilities up to date with Japanese laws andregulations for safety and energy savings. The Group is also continuing to expand its sales activities inthe petroleum and petrochemical fields.
Pharmaceutical/Biochemistry/General Chemistry/Environment/Infrastructure
The Group has been moving forward with the EPC execution for a new international airport in Mongolia
and the new Bohol airport in the Philippines. Meanwhile, the Group has also been responding to the3overseas expansion in Japanese clients’ businesses in non-hydrocarbon fields. In Japan, the Group has
won a number of EPC projects for large-scale photovoltaic power generation systems. The Group has
been expanding its sales activity by enhancing the Group’s operations in these fields. Also in Japan, theGroup is executing EPC work for a food factory to support food safety and hygiene control. In thepharmaceutical industry, the Group has been awarded EPC work for an advanced pharmaceutical plant
to manufacture injections, and has been carrying out EPC work for manufacturing facilities of active
pharmaceutical ingredients, vaccines and bio-medicine plants.
New Business Fields
Chiyoda Corporation (Chiyoda) and Ezra Holdings Limited (Ezra) established a joint venture named
EMAS CHIYODA Subsea (ECS) on March 31, 2016, in order to accelerate expansion in the offshoreand upstream business. In June, 2016, Nippon Yusen Kabushiki Kaisha (NYK) agreed to join ECS with
Chiyoda and Ezra. Although the current business environment around the offshore and upstream
business field continues to be weak, ECS was able to secure a new project this fiscal year. ECS’s freshbusiness development activity brings measurable benefits. At the same time, the Group’s strategic
alliance partner, the Xodus Group has been providing integrated services in the offshore and upstream
field for resource exploration companies worldwide.
As for new energy fields, the Group has developed its own technology for the large-scale transportationand delivery of hydrogen. The Group has been actively collaborating with various parties in order torealize a hydrogen-based society.
Note: See Page 9 for more information on New Contracts, Net Sales and Backlog of Contracts bysegment.

46. Consolidated quarterly financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31,2016

As of June 30,2016

137,715

128,880

69,29654,756

6,999

5,999

35,05336,983

179,360

157,681

28,889(2,285)455,030

34,781(1,654)417,429

7,137
5,266
1,538

6,903
5,266
1,351

13,942

13,521

11,068

10,27243,071
5,487(379)
48,17841,9966,425(352)

48,07073,189528,219

71,864489,293

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts
receivable from completed
construction contracts
Securities
Costs on uncompleted construction
contracts
Jointly controlled assets of jointventure
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 andequipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and otherassets
Total non-current assets
Total assets

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(Millions of yen)
As of March 31,2016

As of June 30,2016

150,078

141,098333

361

5

4

2,841

1,924

135,667

110,890

337

263

3,160

2,341

3,527
15,155311,106

1,466
16,054274,405

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

10,007
340
2,255
2,341
14,945289,350

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

43,396
37,112
116,961(1,423)
196,047

2,386

2,156

(1,618)(3,548)

300

337

5,240

1,952

1,961
202,128
528,219

1,942
199,942489,293

Liabilities
Current liabilities
Notes payable, accounts payable
for construction contracts
Short-term loans payable
Current portion of long-term loanspayable
Income taxes payable
Advances received on uncompleted
construction contracts
Provision for warranties forcompleted construction
Provision for loss on construction
contracts
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision
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
incomeValuation difference on availablefor-sale 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

4,171

63,006

(2) Consolidated statement of income and comprehensive income(Consolidated statement of income)(Millions of yen)Three months ended Three months ended
June 30, 2015
June 30, 2016

Net sales of completed construction contracts
Cost of sales of completed construction contracts

125,946
116,232

133,639
124,927

Gross profit on completed construction contracts

9,713

8,712

Selling, general and administrative expenses

5,734

5,186

Operating income

3,979

3,525

423
772
－
61

329
625
4,788
39

1,257

5,783

56

53

437

294

1,206
23－
34

1,724

382

Ordinary income

3,512

8,926

Extraordinary income
Gain on sales of investment securities

2,112

313

2,112

313

Profit before income taxes

5,624

9,239

Income taxes - current
Income taxes - deferred

2,694
978

4,490
929

Total income taxes

3,673

5,419

Profit

1,951

3,819

Profit (loss) attributable to non-controlling interests

(65)

107

Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange losses
Other
Total non-operating expenses

Total extraordinary income

Profit attributable to owners of parent

2,017

73,712

(Consolidated statement of comprehensive income)(Millions of yen)Three months ended Three months ended
June 30, 2015
June 30, 2016

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 oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income

1,951

3,819

(257)
1,452
(963)

(229)
(1,924)(1,269)

(21)

(13)

(28)

180

2,132

Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests

837(3,400)
419

2,172

424

(39)

(5)

7.

Production, Contracts and SalesMillions of yen
Apr. 1, 2015 —Jun. 30, 2015

Engineering

Apr. 1, 2016 —Jun. 30, 2016

New
contracts(ratio)Net sales(ratio)Backlog ofcontracts(ratio)Newcontracts(ratio)Net sales(ratio)Backlog ofcontracts(ratio)46,250124,768

1,356,068

57,511

132,7311,010,736

97.8%

99.1%

99.9%

98.4%

99.3%

100.0%LNG Plant

17,06170,362

1,072,612

28,404

98,338723,026

36.1%

55.9%

79.0%

48.6%

73.6%

71.5%

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

2,851
6.0%

4,727
3.8%

29,003
2.1%

5,901
10.1%

2,939
2.2%

21,701
2.2%

12,81327.1%

32,932
26.1%

161,565
11.9%

10,814
18.5%

20,847
15.6%

181,943
18.0%

OthersOther Business
Total
Domestic
Overseas

7,967

8,290

30,689

7,536

6,432

30,502

16.9%

6.6%

2.3%

12.9%

4.8%

3.0%

4,793

7,955

60,041

3,030

3,120

49,862

10.1%

6.3%

4.4%

5.2%

2.3%

4.9%

763
1.6%

500
0.4%

2,156
0.2%

1,823
3.1%

1,053
0.8%

3,699
0.4%

1,055
2.2%

1,177
0.9%

1,610
0.1%

908
1.6%

908
0.7%

-47,306

125,946

1,357,678

58,419133,639

1,010,736

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

21,83746.2%

21,75617.3%

100,112
7.4%

26,70545.7%

17,45713.1%

104,036
10.3%

25,468104,189

1,257,566

31,714

116,182

906,699

53.8%

82.7%

92.6%

54.3%

86.9%

89.7%

Note1: The backlog of contracts for the three months ended June 30, 2016 includes a decrease due to changes
in construction contracts acquired in prior fiscal years, and an increase due to foreign exchangetranslation adjustments.
Note2: The total amount of the above table does not include consumption tax.

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