Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/enYokohama, August 16, 2019

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Summary of the Q&A session of the Presentation of the1Q Financial Results for the FY ending March 31, 2020
Chiyoda Corporation (“Chiyoda”, TSE: ISIN: JP3528600004) released on August 1, 2019 its 1Q financial
results for the FY 2020. A presentation was held on the same day at 15:30 (Japan Standard Time) inTokyo, Japan. The following is the summary of the Q&A session.

12Question

AnswerWas the incentive payment for Cameron

Both Cameron incentive and Yamal contingency

LNG and reversal of contingency cost forreversal were not included in the full-year

Yamal LNG included in the full-year

forecast. Except for those one-off items, the 1Q

forecast?

results are as anticipated.

Was the impact of Tangghu LNG contract

No, it was not reflected to the 1Q result. If there

revisions reflected in this 1Q results?

will be any impact due to contract revisions, it
shall be reflect to the financial statements asappropriate.

34

As the Gross Profit Margin (GPM) in 1Q

Thewith 15% is above full year forecast ofalthough we recognized one-off profit from

7.4%, will there be any downside risks

Cameron and Yamal in 1Q. As of today, no

expected for the latter half of the FY?

negative impact after 2Q is expected.

The 1Q new order progress has only

New Order intake is in line and forecast remains

reached 6% of the full year forecast, is thisunchanged. Large scale orders are anticipated toin line with your anticipation?

be booked in 4Q.

1full-yearforecast

remains

unchanged

Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

5

6Question

Answer

Does the new order policy focuses on

While the priority is set to familiar areas and long“repeat orders” (known geographical areas

term clients, order intake is not limited to knownand clients)?

projects.

Are you going to change your order

LNG projects are main targets along a carefulstrategy for upcoming projects?

consideration of the risk/return balance. Further,company’s available resources are not to beover-stretched.
In addition, political risks are closely monitored
and intelligence is being collected for projects
mainly in the middle east countries.

7

Was the policy for foreign exchange

As a result of the foreign-currency denominatedhedging changed from 1Q FY 2020?

assets and liabilities, mostly comparable on aconsolidated basis, a foreign exchange forward
contract has not been arranged in 1Q of FY2020.

Note: The above text was modified for better understanding of the content.
Any projections included in these materials are based solely on information available at the time thispresentation was prepared. It is possible that actual results may vary significantly from the projections due
to a number of risk factors such as economic conditions. The results projected here should not beconstrued in any way as being guaranteed by the Company. Investor are recommended not to depend
solely on these projections for making investment decisions.

2