Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018

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

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2018
May 11, 2018
Company name:
Listing:
Stock code:
URL:
Representative:
Inquiries:TEL:

CHIYODA CORPORATIONFirst Section of the Tokyo Stock Exchange
6366
https://www.chiyodacorp.com/en/
Masaji Santo, President & CEO
Shinji Kusunoki, GM, Accounting Department+81-45-225-7745

Date of general shareholders' meeting (as planned): June 21, 2018
Dividend payable date (as planned): June 22, 2018
Annual securities report filing date (as planned): June 21, 2018
Preparation of Quarterly Supplementary Explanation Material: Yes
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 fiscal year ended March 31, 2018
(Percentages indicate year-on-year changes)(1) Consolidated operating results
Net sales
Millions of yen

Fiscal year ended
March 31, 2018
Fiscal year ended
March 31, 2017
Note: Comprehensive Income:Operating income%

Millions of yen%

Millions of yen%

Millions of yen%

510,873 (15.4)(12,330)－(10,100)

－

6,445

－

603,745

15,680(2.1)(3,080)－(41,116)－(1.3)

Fiscal year ended March 31, 2018: 3,878 million yen / (－)%
Fiscal year ended March 31, 2017: (42,391) million yen / (－)%

Net income per Fully diluted net
share
income per share
Fiscal year ended
March 31, 2018
Fiscal year ended
March 31, 2017
Reference: Equity

Profit attributable toowners of parent

Ordinary income

Return on
Equity(ROE)

Ratio of ordinary
Ratio of operating
Income to Total assets income to revenue

Yen

Yen

%

%

%

24.89

－

4.1

(2.3)

(2.4)

(158.76)－(23.1)(0.6)

2.6

Fiscal year ended March 31, 2018:
680 million yen
Fiscal year ended March 31, 2017: (17,106) million yen(2) Consolidated financial position
Total assets
Millions of yen

Net assets
Millions of yen

Equity ratio

Net assets per share%

Yen

As of March 31, 2018
420,704
159,418
37.5
As of March 31, 2017
461,331
157,125
33.7
Reference: Equity
As of March 31, 2018: 157,557 million yen
As of March 31, 2017: 155,339 million yen

608.41599.83(3) Consolidated Cash Flow
Net cash provided by
Fiscal year ended
March 31, 2018
Fiscal year ended
March 31, 2017

Operating activities

Investing Activities

Financing Activities

Millions of yen

Millions of yen

Millions of yen(34,115)(1,428)(1,468)(4,375)

10,433(2,693)

Cash and equivalents,
end of perid
Millions of yen

101,767
138,889

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018

2. Cash dividends
Cash dividends per share
Record date

First quarter

SecondquarterThird quarter

Fiscal yearend

AnnualPayment of
Payout ratio Dividend on
cash(consolidate) equity ratio
dividends

Yen

Yen

Yen

Yen

Yen Millions of yen%%

Fiscal year ended
March 31, 2017

－

－

－

6.00

6.00

1,553

－

0.9

Fiscal year ended
March 31, 2018
Fiscal year ending
March 31, 2019
(Forecast)

－

－

－

7.50

7.50

1,942

30.1

1.2

－

－

－

7.50

7.50

29.9

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2019 (from April 1, 2018 toMarch 31, 2019)(Percentages indicate year-on-year changes)

Net sales
Millions of yen

Fiscal year ending
March 31, 2019

Operating income

Profit attributable toowners of parent

Ordinary income

Net income
per share%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

400,000 (21.7)

11,500－12,500

－

6,500

0.8

25.10

4. Others(1) Changes in Significant Subsidiaries during the Period (changes in specified subsidiaries accompanying
changes in the scope of consolidation): Yes
RemovedXodus Group (Holdings) Limited(2) Changes in Accounting Policies and Accounting Estimates / Restatements
a. Changes in accounting policies due to revisions of accounting standards, etc.: Noneb. 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. Total number of issued shares at the end of the period (including treasury stock)
As of March 31, 2018260,324,529 shares
As of March 31, 2017
260,324,529 sharesb. Number of treasury stock at the end of the period
As of March 31, 2018
1,356,873 shares
As of March 31, 2017
1,351,100 sharesc. Average number of shares during the period
Year ended March 31, 2018258,968,865 sharesYear ended March 31, 2017258,979,383 shares*This report is not reviewed by auditor.
*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.

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018

Table of Contents for the appendices1.

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

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

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

Outlook................................................................................................................................ 3(4)

Dividend Policy and Current/Next-Period Dividend Payments ............................................. 4(5)

Business Risks .................................................................................................................... 4

2.

Basic Concept of Accounting Criteria ......................................................................................... 6

3.

Consolidated quarterly financial statements ............................................................................... 7(1)

Consolidated balance sheets .............................................................................................. 7(2) Consolidated statement of income and comprehensive income ............................................... 9(3) Consolidated statement of cash flows .................................................................................... 11(4) Notes on Consolidated Financial Statements ......................................................................... 14
4.

Production, Contracts and Sales.............................................................................................. 15

5.

Change to Directors ................................................................................................................. 16

1

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018

1. Qualitative Information Related to Consolidated Performance(1) Qualitative Information on Business Performance
Despite geopolitical tensions in the Middle East and Korean Peninsula as well as spread of protectionism
among major countries, macroeconomics in Asia, Europe and the USA remained relatively stable during thecurrent fiscal year. The price of crude oil has remained in a range of approximately $50 to $60 per barrel
and, and investment activities for new large scale Liquefied Natural Gas (LNG) project have gradually
increased based on steady growth of LNG demand.
Through its LNG core business, Chiyoda continued to implement large-scale projects worldwide, and wasawarded FEED (Front-end engineering & design) work for Qatar expansion project in this fiscal year. In
addition, the Company is also implementing structural reforms and the growth strategy detailed in its
Medium-Term Management Plan “Mirai Engineering – A Grand Opportunity for the Future” announced inAugust 2017. This includes expansion into new markets, such as renewable energy and life sciences andnew areas for future business models such as leveraging big data and AI technology.
Consequently, on consolidated basis, New Orders, for the fiscal year ended March 2018, amounted to301,214 million yen (down 14.4% year on year). The Backlog amounted to 653,516 million yen (down 25.5%
year on year). Revenues amounted to 510,873 million yen (down 15.4% year on year) and Operating Loss
is 12,330 million yen (previous year 15,680 million yen of Operating profit). Ordinary loss amounted to
10,100 million yen (previous year 3,080 million yen). Profit attributable to owners of parent amounted to6,445 million yen (previous year consolidated loss of 41,116 billion yen).
Operating Income and Ordinary income is a loss due to an anticipated increase in costs on LNG projects
currently underway in the United States. Profit attributable to owners of parent increased to 6,445 million
yen following recovery of subsidiary losses and Federal corporation tax refunds to the U.S. subsidiary.
A summary of reportable engineering business activities is shown below.

LNG Plants and Other Gas Related Work
Overseas, Chiyoda is executing EPC work for the projects in Australia, U.S., Russia and Indonesia. In
Russia, the 1st train of Yamal project was completed and started production of LNG in December 2017. In
addition, Chiyoda is conducting pre-contract work on an LNG project in Mozambique as the selected EPC(Engineering, Procurement and Construction) Contractor. In Qatar, owing to successful completion of thedebottlenecking study, Chiyoda was awarded FEED work for an expansion project with 7.8 million ton/yearby three trains. Also Chiyoda is bidding for new LNG plant projects in USA. In Qatar, the Group has been
engaged under long term Engineering, Procurement, Construction and management (EPCm) contracts ona helium production facility and the renovation and modification of LNG and gas processing plants previously
constructed by the Company.
In Japan, EPC activities have commenced for the renovation and modification of existing LNG receiving
terminals similarly built by Chiyoda.

Refinery/Petrochemicals/Metal
Overseas, Front-End Engineering and Design (FEED) work for petrochemical project in the USA has been
completed as planned. A group company in Southeast Asia is executing Engineering, Procurement,
Construction and Commissioning (EPCC) activities for a Residue Fluid Catalytic Cracking (RFCC) projectin Malaysia and EPC operations on a petrochemical tank terminal in Southeast Asia. In addition, Chiyoda
completed a titanium sponge plant in Saudi Arabia in May 2017.
In Japan, Chiyoda continues to facilitate inter-refinery cooperation in the mutual accommodation of fuelthrough its EPC operations. The Group continues to renovate and upgrade existing facilities in accordancewith the Basic Act for National Resilience and carry out routine maintenance to improve energy efficiency inexisting petrochemical production, and other, facilities.

Pharmaceutical/Biochemistry/General Chemistry/Environment/Infrastructure
Overseas, in transport infrastructure, the Group is completing EPC projects for new international airports in
Mongolia and Bohol in The Philippines. In the environment field, the Group aims to introduce the Chiyoda
Thoroughbred 121 (CT-121) Process into flue gas desulfurization facilities on an existing coal fired power
plant project in India under long term agreement. The demonstration vegetable facility project that uses
artificial light in Dubai, UAE was completed in December 2017, and Chiyoda will continue to focus its

2

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018

introduction of the commercial facilities in the Middle East and Russia.
In Japan, Chiyoda is conducting EPC work on photovoltaic (mega solar) facilities, CO2 separation units andflue gas desulfurization facilities on existing coal-fired power plants.
In the food, pharmaceutical and biochemistry industries, EPC work for a biomedicine manufacturing facility
was finished in March 2017. Meanwhile Chiyoda is progressing EPC work for factories complying with thelatest food hygiene standards, research facilities capable of handling high-potency pharmacologically active
agents, including cutting-edge injection production facilities, and pharmaceutical facilities. The Group will
also complete Japan’s first demonstration plant for bio-jet and diesel fuel production by October 2018.

New Business Fields
In the offshore and upstream fields, following approval of the ECS reorganization plan in June 2017, Chiyoda
has been in discussions with Subsea 7 S. A., ECS’s new parent, regarding future collaboration. As a part ofthis collaboration, Chiyoda and Subsea 7 have agreed to transfer 60% of the share of Xodus Group Ltd.,
Chiyoda’s subsidiary in the U.K. from Chiyoda to Subsea 7. Xodus will be continuing to advise on acquiring
rights and provide planning, design, consulting and other services to companies developing natural
resources on the safe decommissioning of obsolete facilities and on the construction of crude oil, gas
production and other facilities. For Chiyoda, it is expected that holding Xodus together with Subsea 7 willfurther strengthen relationship between two companies and that early consulting activities to be provided by
Xodus will support Chiyoda in awarding EPC work in this business field. In the new energy field, “Advanced
Hydrogen Energy Chain Association for Technology Development”, established jointly with Mitsubishi
Corporation, Mitsui & Co. Ltd. and Nippon Yusen (NYK Line), has started actual work on a demonstration
project aimed at commercializing a hydrogen supply chain.
In the digital innovation business field, in a tie-up agreement with GRID Inc., a leading venture company inthe field of AI technologies in Japan, the Company commenced projects using AI technologies to improve
plant productivity.

(2) Financial Information on Business PerformanceThis section is not translated.

(3) Outlook
1) Forecast of next Fiscal Year income related items
Although LNG project final investment decisions remain outstanding, bidding and investment activities have
gradually increased. The Chiyoda Group will steadily execute construction projects on hand, including LNG
projects in progress in Australia, United States, Russia and Indonesia.
In addition, the Group will proceed structural reforms and the growth strategy detailed described in theMedium-Term Management Plan and further expand into new areas and pursue for future business models.
Under these operating conditions, the Company forecasts to achieve consolidated new orders of 800,000
million yen, consolidated revenues of 400,000 million yen, consolidated operating income of 11,500 million
yen, consolidated ordinary income of 12,500 million yen and consolidated profit attribute to owners of parentof 6,500 million yen in the fiscal year 2018 ending March, 2019. Exchange rate of assumption is .105 yen
per U.S. dollar.
2) Management Policy
The Chiyoda Group formulated "Mirai Engineering” A Grand Opportunity for the Future, a Medium-Term
Management Plan (“MTMP”) covering the period from FY2017 to FY2020, aiming to become a new type ofengineering company that will create the future of energy and the global environment through its technology
and passion. Under the MTMP, the Group will simultaneously create a solid management base for future
growth (structural reform) and expand business fields and transform its business model, looking ahead 10
years (growth strategy). It aims to contribute to the development of a sustainable society and to be a global
top-tier “Integrated Engineering & Service Provider” in the fields of Energy and Environment.
In the consolidated fiscal year under review, the first fiscal year of the MTMP, the Structural Reform
Promotion Office established in October last year took the lead in formulating and starting to implement
internal measures to further strengthen risk management capabilities, increase basic earnings strength andenhance resilience to downturns, and further expand the human resource base. Following the establishmentof the Growth Strategy Division in October last year, the Group also resolutely restructured businessdivisions in April this year, to more powerfully execute the three growth strategies under the MTMP, which
are to build the energy value chain business, expand the global environmental engineering business, and3

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018

develop a new business model for a digital society.
Looking at the Chiyoda Group’s macro-environment, the supply and demand structure for energy is in the
midst of a long-term shift and, in this environment, the Group will continue initiatives to receive orders forlarge projects in Mozambique and North America in the LNG market. It will also strive to expand businessin renewable energy, electricity and energy storage, and environmental markets based on an awareness of
the advent of a carbon-free society, while concentrating on branching out into diverse areas such as
pharmaceuticals and life sciences. The Group will also step up activities to become more digitally equipped,
to promote the development of new business models in response to rapid advances in AI, Big Data and IoT.

(4) Dividend Policy and Current/Next-Period Dividend Payments
The Chiyoda Group sets a consolidated dividend payout ratio of more than 30% for the MTMP period along
a minimum full-year dividend of 6 yen per share. Further in the policy, the dividend amount for each fiscal
year is determined in consideration of the progress under the Growth and Investment Strategy, reflecting
the operating environment.
We plan to pay a dividend per share for the fiscal year under review of 7.5 yen. For the next fiscal year, weplan a year-end dividend per share 7.5 yen.

(5) Business Risks
Business risks may significantly impact the Chiyoda Group’s business operations and finances. These risks
have the potential to impact investor decision making. Recognizing these 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, social and political environments,
protective trade, economic sanctions, and diplomatic relations, changes in home country energy policies
and commodity prices such as oil, LNG and metal resources prices: All the factors may affect the Groupearnings. 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 business and strives toreduce 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 Events
Force Majeure events such as earthquakes, natural disasters by heavy rains or floods due to global climatechanges, terrorism and wars have the potential to materially impact project sites or business locations.
Disruption issues may include personnel life crisis, delays in equipment and materials delivery and/or
suspension of field work.
The Group puts life and safety first and has the Crisis Management Unit, to compile and analyze information
to prevent human suffering or harm. The Group has established, and is reinforcing, the crisis management
system, which advocates the employment of professional security advisors in the regions requiring particularattention. 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 theparties 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 by conducting 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 timedifference between plant or material quotation and purchase. Specifically the price of steel, which constitutes
a major part of plant construction, could be severely impacted by a rise in commodity prices such as coaland iron ore. Future market prices of copper, 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.

4

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018(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 countries where materials and/or adequately qualified labor are scarce or insevere climate areas, and by establishing communication and collaboration with reliable 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 in cooperation 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.
Safety is of paramount importance to the Group, reinforced by the maxim “Safety is the Core 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 projectdelivery, from feasibility through design and 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 acurrency that does not correspond with the currency received from the client for the work. In such cases,
exchange rate fluctuations can have an impact on earnings. The Group avoids/minimizes exchange raterisk 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 regulations in the respective
countries and regions where its head office, subsidiaries, business offices 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 them to understand and strictly
observe the updated laws, acts, regulations or rules related to its business operations including those forhuman rights and anti-bribery. The Group also makes every effort to comprehend the present trend of
stakeholders including the authorities concerned and clients, both at home and abroad. Additionally, theGroup has incorporated compliance response in its operating processes by establishing a Compliance
Committee consisting of CCO (Chief Compliance Officer) as a chairman and all Division Directors, andGroup Company Liaison Meeting on Compliance consisting of CCO as a chairman and Group company
representatives.
(h) Information Security Risk
The Group takes great care in managing information obtained from clients, subcontractors, equipment andmaterials suppliers and other service providers. The information is necessary in the performance of its
business. The Group also possesses confidential information related to technologies, sales, and otherbusinesses. Many core corporate operations and business transactions are conducted by making full useof 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 andminimizing measures under its business continuity plan.
(i) Business Investment Risk
The Group makes business investment to pursue the growth strategy under MTMP such as theestablishment of a new company or the purchase of the existing company. The Group is exposed to several
risks, such as changes in the business environment, lower earnings obtained than planned, a downturn inbusiness and incurring extra costs. Prior to deciding on business investment, the Group does assess thefeasibility through our standards and rules. After making an investment, the Group regularly monitors the
progress in the business and provide various types of support as necessary, to avoid or minimize any loss.

5

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018

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 othercompanies' financial statements. The Group will follow international accounting criteria in due course after
examining the trend of Japanese engineering contractors.

6

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018

3. Consolidated quarterly financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2017

As of March 31, 2018

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts
Securities

135,373

96,00859,86576,884

7,999

7,999

Costs on uncompleted construction
contracts

24,22015,916

Accounts receivable – other
Deferred tax assets

7,761
9,586

41,967
5,948

164,283
17,696

131,374
5,563

Jointly controlled assets of joint venture
Other
Allowance for doubtful accounts(1,541)(1,245)

Total current assets

425,244

380,418

Non-current assets
Property, plant and equipment
Buildings and structures

13,892

13,504

Accumulated depreciation(7,265)(7,493)

Buildings and structures, net

6,627

6,010

Machinery and vehicles

547

522

Accumulated depreciation

(328

(349)

Machinery and vehicles, net

218

172

Tools, furniture and fixtures

7,236

6,142

Accumulated depreciation(6,212)(5,321)Tools, furniture and fixtures, net

1,023

820

5,266

4,952

22

115

13,15812,071Intangible assets

8,098

5,718

Investments and other assets
Investment securities

7,707

7,681

Net defined benefit asset
Deferred tax assets

84
4,967

203
6,328

Other
Allowance for doubtful accounts

2,405
(336)

8,468
(185)

Total investments and other assets

14,83022,49636,08640,286461,331420,704Land
Construction in progress
Total property, plant and equipment

Total non-current assets
Total assets

7

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018

(Millions of yen)
As of March 31, 2017

As of March 31, 2018

Liabilities
Current liabilities
Notes payable, accounts payable forconstruction contracts
Short-term loans payable

160,096

147,654

203－

Current portion of long-term loans payable
Income taxes payable

10,004668－
894

Advances received on uncompleted
construction contracts

85,18776,294

Provision for warranties for completed
construction

319

419

Provision for loss on construction contracts
Provision for bonuses

3,315
3,156

3,288
3,887

Provision for loss on business of
subsidiaries and associates

22,919－Other

15,311

16,224

Total current liabilities

301,182

248,6634338

10,000344

Net defined benefit liability
Other

1,522
1,158

1,176
1,101

Total non-current liabilities

3,023

12,622

304,206

261,286

Shareholders' equity
Capital stock

43,39643,396

Capital surplus
Retained earnings

37,112
72,132

37,11277,024

Treasury shares(1,431)(1,434)

Total shareholders' equity

151,210156,099

Valuation difference on available-for-salesecurities

379

64

Deferred gains or losses on hedges
Foreign currency translation adjustment

499
2,656

(1,778)2,159

Remeasurements of defined benefit plans

592

1,013

Total accumulated other comprehensive
income

4,128

1,458

Non-current liabilities
Long-term loans payable
Provision for treatment of PCB waste

Total liabilities
Net assets

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

8

1,785

1,861

157,125

159,418

461,331420,704

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018

(2) Consolidated statement of income and comprehensive income(Consolidated statement of income)(Millions of yen)
Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

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

603,745565,521510,873502,255

Gross profit on completed construction contracts

38,223

8,618

Selling, general and administrative expenses

22,543

20,948Operating profit (loss)

15,680(12,330)

1,554
933

2,245
340

Share of profit of entities accounted for using
equity method

－

680

Other

357

299

2,844

3,566

209

212

17,106

－

3,455

667

59
775

208
247

21,605

1,336(3,080)(10,100)

Reversal of provision for loss on business of
subsidiaries and associates－

12,441Gain on sales of shares of subsidiaries andassociates

－

1,732

Gain on sales of investment securities
Other

1,937
－

202
590

Total extraordinary income

1,937

14,967

22,919

－

1,146

－

766

－

393

－

Non-operating income
Interest income
Dividend income

Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using
equity method
Foreign exchange losses
Commission fee
Other
Total non-operating expenses
Ordinary loss
Extraordinary income

Extraordinary losses
Provision for loss on business of subsidiaries
and associates
Loss on sales of shares of subsidiaries andassociates
Impairment loss
Loss on valuation of investment securities
Total extraordinary losses
Profit (loss) before income taxes

25,225－(26,368)

4,867

Income taxes - current

15,026(5,475)

Income taxes - deferred

(143)

3,741

Total income taxes

14,883(1,734)

Profit (loss)
Profit (loss) attributable to non-controlling interests(41,251)

6,602

(135)

156

Profit (loss) attributable to owners of parent(41,116)6,445

9

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018

(Millions of yen)
Fiscal year ended
March 31, 2017
Profit (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

Fiscal year ended
March 31, 2018(41,251)

6,602(2,006)

(315)

2,129

(2,276)(1,102)(1,001)

291

420

(451)

450

(1,139)(2,723)(42,391)

3,878

Comprehensive income attributable to ownersof parent(42,228)

3,775

Comprehensive income attributable to noncontrolling interests

(162)

103

Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to10Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018

(3) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2017
Cash flows from operating activities
Profit (loss) before income taxes

Fiscal year ended
March 31, 2018(26,368)

4,867

Depreciation
Impairment loss

3,643
766

3,545
－

Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts

547
(701)

327
(218)

Increase (decrease) in provision for warranties forcompleted construction

(15)

102

Increase (decrease) in provision for loss on construction
contracts

154

(25)

(368)

732

22,919(12,777)

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

(428)

44

(2,487)209(2,585)
212

(186)

477

17,106

(680)

393

－

(1,937)

(202)

1,146

(1,732)

8,141(19,550)

10,786

8,289

11,401(10,420)(48,668)(8,014)(1,901)(26,992)

13,66631,920376(1,431)

Subtotal

8,194(34,114)

Interest and dividend income received
Interest expenses paid

1,458
(205)

1,954
(205)

Income taxes paid

(13,821)(1,750)Net cash provided by (used in) operating activities(4,375)(34,115)

Net decrease (increase) in time deposits
Purchase of property, plant and equipment

3,043
(649)

2,028
(550)

Proceeds from sales of property, plant and equipment
Purchase of intangible assets

46(1,451)362(2,044)Purchase of investment securities
Proceeds from sales of investment securities(351)
15,554(338)
896Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) 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 shares of subsidiaries andassociates
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

Cash flows from investing activities

11

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018

Proceeds from sales of shares of subsidiaries resulting in

－

1,684

(12,188)(4,229)Collection of loans receivable
Other, net

6,382
49

757
5

Net cash provided by (used in) investing activities

10,433(1,428)change in scope of consolidation
Payments of loans receivable

12Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018

(Millions of yen)
Fiscal year ended
March 31, 2017

Fiscal year ended
March 31, 2018

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-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

(50)
－

149
10,000(3)(2,586)(10,004)(1,552)

(52)

(61)

(2,693)(1,468)(1,395)

(108)

1,969

(37,121)

Cash and cash equivalents at beginning of period

136,919

138,889

Cash and cash equivalents at end of period

138,889

101,76713

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018(4) Notes on Consolidated Financial Statements(Notes on Assumptions for a Going Concern)
None(Notes on Significant Changes in the Amount of Shareholders’ Equity, if Applicable)
None

14

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018

4. Production, Contracts and Sales(Millions of yen)
Apr. 1, 2017 － Mar 31, 2018

Apr. 1, 2016 － Mar 31, 2017
New
contracts(ratio)Net sales(ratio)Backlog ofcontracts(ratio)New
contracts(ratio)Net sales(ratio)Backlog ofcontracts(ratio)348,279

600,244876,819

297,914507,573653,516

99.0%

99.4%

100.0%

98.9%

99.4%

100.0%

190,252

415,199605,274

123,283

361,559

352,164

54.1%

68.8%

69.0%

40.9%

70.8%

53.9%

6,825

14,353

11,7392,666

11,238

4,406

1.9%

2.4%

1.4%

0.9%

2.2%

0.7%

57,316

101,133

153,548

52,62352,741

155,031

16.3%

16.7%

17.5%

17.5%

10.3%

23.7%

Pharmaceutical/Biochemistry/
Chemical

35,70529,66335,31235,07533,671

36,117

10.2%

4.9%

4.0%

11.6%

6.6%

5.5%

Environment/New
Energy/Infrastructure

47,26833,592

63,402

69,77336,11796,510

13.4%

5.6%

7.2%

23.2%

7.1%

14.8%

10,910

6,301

7,540

14,491

12,245

9,286

3.1%

1.0%

0.9%

4.8%

2.4%

1.4%

3,501

3,501

-

3,300

3,300

-

1.0%

0.6%

-

1.1%

0.6%

-

351,780

603,745876,819

301,214510,873653,516100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

130,492

102,434

122,046

151,733

109,795

163,210

37.1%

17.0%

13.9%

50.4%

21.5%

25.0%

221,287

501,311754,772

149,480

401,078

490,306

62.9%

83.0%

86.1%

49.6%

78.5%

75.0%

Engineering
LNG Plant
Gas
Development/Processing/Receiving
Refinery/Petrochemical/Metal

OthersOther Business

Total

Domestic
Overseas
Note 1:The backlog of contracts for the ended March 31, 2018 includes a decrease due to changes in construction
contracts acquired in prior fiscal years, and an adjustment due to foreign exchange translation adjustments.

Note 2:The total amount of the above table does not include consumption tax.

15

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2018

5. Change to Directors(1) Nominees for Directors, Audit and Supervisory Committee
New Assignment

Current Position

Mikio Kobayashi

Director, Full-time Audit andSupervisory Committee

Director, Full-time Audit andSupervisory Committee

Takahiro Kitamoto

Director, Audit and Supervisory
Committee

AdvisorHiroshi Yamaguchi

Director, Audit and Supervisory
Committee

Newly appointed

Tetsuya Aiba

Director, Audit and Supervisory
Committee

Newly appointed

Director, Audit and Supervisory
Newly appointed
Committee
The following members are nominees for Outside Directors of Audit and Supervisory Committee
Mikio Kobayashi
Hiroshi Yamaguchi
Mika Narahashi

Mika Narahashi
Notes:

The following members are nominees for Independent Directors regulated by the Tokyo Stock
Exchange, Inc.
Mikio Kobayashi
Hiroshi Yamaguchi
Mika Narahashi(2) Retirement from Audit and Supervisory Committee
Hideaki Takaishi
Yukihiro Imadegawa(3) Appointment and retirement date (as planned)
June 21, 201816