<< Translation for Reference>>
July 30, 2021
Company Name: Chiyoda Corporation
President & COO: Masaji Santo
Stock Code: 6366
Stock Listing: Second Section of the Tokyo Stock Exchange
Inquiries: Masaru Akiyama, Manager, Accounting Dept.
Telephone: +81-45-225-7281
Notice of Extraordinary Losses Resulting in Revisions of the Forecast of Consolidated Results
Chiyoda Corporation (Chiyoda) recognizes extraordinary losses related to the discussion and arbitration of theIchthys LNG project in Australia in the 1st quarter of fiscal year ending March 31, 2022. As a result, Chiyoda revised
the full year consolidated financial forecasts for the fiscal year ending March 31, 2022, which was released on May7, 2021.
Recognizing extraordinary losses stabilizes cash flow and profit by eliminating uncertainties caused by the past
project. Chiyoda aims to swiftly resolve concerned matters. Chiyoda steadily proceeds with Revitalization Plan,
allocating operating resources to execute ongoing projects and growth strategy.
1. Recognition of Extraordinary Losses
In 2012, JKC, a joint venture of Chiyoda, JGC Holdings Corp., and an American company, KBR, Inc., wasawarded the contract from Ichthys LNG Pty Ltd (the Customer) to perform the engineering, procurement, andconstruction work for LNG facilities (the Project). This plant had been already in commercial operation andshipment of LNG started in October, 2018.
On the other hand, there are matters between the Customer and JKC that are currently subject to discussion andarbitration concerning the adjustment to the contract amount of the Project and the range of reimbursable amounts.
Under the circumstances of the COVID-19 pandemic where the arbitration is anticipated to be further prolonged,
Chiyoda has re-evaluated the prospective dispute expenses as well as the risk of uncertainty of the result from thearbitration and litigation.
As a result of re-evaluation of risks, considering the current status of discussions with the Client, Chiyoda
recognizes extraordinary losses of 20.4 billion JPY in the 1st quarter of fiscal year.
No cash out will occur resulting from the recognition of extraordinary losses.

2.

Revisions of the Forecast of Consolidated Results(a) Revisions to the full year consolidated financial forecasts for the fiscal year ending March 31, 2022 (fromApril 1, 2021 to March 31, 2022).

Operating
IncomeRevenues

Previous Forecast (A)Revised Forecast (B)Increase (Decrease) (B-A)
Percentage
Increase(Decrease) (%)（Reference）
Results for the FY ended
March 31, 2021）

Profit (Loss)
Attributableto Owners ofParents
JPY MM
JPY MM
9,000
6,000
9,000
(14,000)
0(20,000)

Ordinary
IncomeBasicEarnings Per
Share

JPY MM
300,000
300,0000JPY MM
11,00011,0000JPY
15.06(62.17)
-000-

-

315,393

7,015

8,462

7,993

22.76(b) Reason for Revisions
By recognizing the abovementioned extraordinary losses, the profit (loss) attributable to owners of parents forthe fiscal year ending March 31, 2022 are forecast to be revised to negative 14,000 million JPY downward
20,000 million JPY. Chiyoda maintains the forecast of revenues, operating income and ordinary income.
Chiyoda will promptly disclose updated information once the progress of discussions with the Customer havea significant impact on our financial results.
3.

Forward-looking Statement
The forecast and plans in this announcement are based on information available on the date these materials
were prepared. Actual results may differ significantly from these forecasts for a number of factors. We strongly
request not to rely only on this forecast in making investment decisions.
-End-