Fiscal Year Ended March 31, 2008
Management Policies for the Fiscal
Year Ending March 31, 2009

Takashi Kubota
President and CEOMay 14, 2008

Contents
 Management Policies for the Fiscal YearEnding March 31, 2009
 New Medium-Term Management Visionand PlanManagement Policies for theYear Ending March 31, 2009
Management Slogan for 2008: “New Horizons, Infinite
Experience”- Issues to be dealt with Steadily Execute Existing Large-Scale Projects
Overseas and in Japan
Strictly Control Costs and Improve Profitability
Enhanced Safety First Policy
Acquire Large-Scale Contracts Overseas
Consolidate Growth Strategy based on mid-termmanagement plan

New Contract Target for the Year Ending
March 31, 2009
 Chiyoda Group: JPY450.0 billion
 FEED works for LNG projects commencing

in the year ending March 31, 2010 andbeyond Large-scale overseas projects
 Domestic projects firm in various fields

New Medium-Term Management Vision –Awareness of the Current Condition
To engender growth, Chiyoda mustTransform its portfolio. LNG plants currently account for
70% of revenues. Chiyoda will shift to a more balanced
portfolio that includes plants and facilities for LNG, gas
processing, oil refining, chemicals, environmental
applications, pharmaceuticals, upstream, offshore,utilities, and industrial facilities.
Form technical partnerships with customers, and pursue
growth in revenues and a higher operating margin.
Further expand the presence of the Chiyoda Groupbrand.

A Diverse Business Domain
Gas upstream
LNG (liquefaction,receiving terminals)
Synthesis gas
GTL

Gas
Value Chain Upstream
Olefins
Aromatics
MethanolFertilizer

Petrochemicals &Chemicals

Refineries

Pharmaceuticals

Environmental
ProtectionMetals &Mining

Flue gas desulfurization
Acid gas/CO2 capture and storageEnergy conservation

GeneralIndustry
Electronic materials
Food processing

Results Trajectory –Past Growth and Present Situation


Average 30% year-on-year growth in revenues during the three
years from March 31, 2005- March 31, 2008
The projected decrease in revenues in the year ending March 31,
2009 calls for a new growth scenario¥700.0-800.0 billion

Growth Trajectory (Revenues)¥603.5 billion

Non-EPC
Environment・
Other¥484.8 billion

Resource
Development

460.0 billion¥390.8 billion

Chemicals¥267.6 billion
Petroleum &Petrochemical
Gas facilities
ＬＮＧ Plant

March 31 ,2005Actual

March 31, 2006
ActualMarch 31, 2007
ActualMarch 31, 2008
ActualMarch 31, 2009Plan

In 5 YearsDirections of Business Expansion

Master Plan Development
Vertical Expansion

Individual Plan Development
Feasibility Study

Feedback
New Energy

Hydro Carbon (Oil, Gas, Coal)
FEED・EPC

Pharmaceuticals

Industrial Facilities

Utilities
Inorganic Chemicals
Environment

Plant Operation Management
Plant Maintenance

Horizontal Expansion

New Medium-Term Management Plan
Respond to customer needs by becoming a world-class comprehensive
engineering company providing an end-to-end range of facilities, from upstream todownstream, in the fields of energy, resources and the environment
 Strengthen the Chiyoda Group’s brand image as the “Reliability No.1”
Comprehensive Engineering Company that delivers outstanding technical capability
with an established culture of safety

By forming a capital and business alliance with Mitsubishi Corporation, Chiyoda
aims to achieve diversity in both regional coverage and scope of business with LNG
and gas facilities at the core of its operations.
In 5 years, Chiyoda expects to achieve consolidated annual revenues on the scaleof ¥700-800 billion, and a ratio of recurring profit to net income of 7%.Strategy for Growthunder the Capital and Business Alliancewith Mitsubishi Corporation
Pursue a growth strategy through synergy
and functional integration in the field ofplant engineering

Investment in Enhancing EngineeringCapabilities
 Accomplishing projects via enhancing

engineering capabilities
 Business alliance or M&A with overseas anddomestic engineering companies
 Reinforcement of construction control

Investment in Expansion ofthe Business Domain
Technology and business alliances in upstream resource
development, including capital participation
 Expand business fields by promoting Carbon Lifecycle
Engineering FPSO, Offshore facilities, utilizing modular technology(LNG, gas processing facilities, etc.)¾ Business alliances or joint ventures with upstream majorplayers¾ Business alliances or joint ventures with overseas
engineering companies
 Expand utility facilities business (water treatment, electric
power generation, steam, etc.)

Investment in Expansion of
the Business Domain
Increase investment in companies acting as operationalbases in Southeast Asia and other regions.
Establish a new operational framework for bases inSoutheast Asia such as Chiyoda Singapore (Pte)
Limited in order to execute overseas petroleum andpetrochemical projects.
Establish a new operational base of Chiyoda-Almana
Engineering to ensure constant securing of EPC work at
Qatar LNG facilities.

Regional Expansion of Operations

Moscow
UK●The Netherlands
France●Algeria

Libya

●
Nigeria

Iran

Beijing●●● ● UAE
Saudi ●● Myanmar
Qatar● ● Vietnam
Arabia
India
●Thai
●
Malaysia●
Singapore●

Houston,USA
Venezuela

Indonesia

BrazilPerthMajor Oil & Gas
Producing Area

Newly establishedsales office

Major Mitsubishi
Corporation’sworldwide network

Enhance regionaloperationInvestment in Technological Researchand Development Investment in catalyst development
 Investment in technology for processing ultra-heavy oil Investment in synthesis gas technology
 Investment in CRI-related technology

development

Investment in the Plant Lifecycle
Engineering (PLE) Business
Expand into related businesses throughbusiness alliances and capital participation
 Expand technical consulting through theChiyoda Group’s technological expertise,centered on ChAS, and expand the PLE
business including operation and maintenance.
 Promote license business for
CT121/ACETICA/CO2 reforming, etc.
 Expand sales of the Chiyoda Group’s IT
technological expertise and IT software.

PLE and Integrated Group Operations
Establishing
Establishingsystems
systemsand
andexecution
execution
capabilities/frameworks
thatcapabilities/frameworks thatallow
allowChiyoda
Chiyodatotocontributecontributetotoany
anyhigh-value-added
high-value-addedplant
plant
projects
handledbytheGroupin
any
field
projects handled by the Group in any field
atatany
anytime.
time.

Cost

9Striving to create new technologies
9Striving to create new technologies
9Deliver cutting-edge solutions
9Deliver cutting-edge solutions
Lifecycle cost
Running cost

Initial costFeasibility
Feasibility
studiesstudies

Basic
Basic planplan

Asset ManagementServices•Investment planning•Financial planning•Asset evaluation

Chiyoda Corporation

Basic
Basic design
designDetailed
Detailed design
designProcurement
Procurement Construction
Construction

Consulting
ServicesCommissioning
Commissioning
Adjustment
Adjustment

EPC Services

Operation
Operation andand maintenancemaintenance
(O&M)
(O&M)

Advanced Analytical
Technology Services

O&M Services•Engineering/Procurement/Construction •Engineering document maintenance (EDM)•Plant concept proposal•Project management•Equipment/piping maintenance•Plant operation proposal•Supervision of design and construction •Electrical/instrumentation maintenance and•Plant evaluation, simulated
calibration
inspection•Air conditioning equipment O&M•Operation plan for existing facilities•Building maintenance•Budgeting

Chiyoda Techno Ace Co., Ltd.

Domestic Group companies

Plant Lifecycle
Engineering

Overseas Group companies(Including GES)Time

Strengthen
Strengthen facilities
facilities Decommissioning
Decommissioning•Facilities management system(Computerized Maintenance Management
System (CMMS))•Structural, fluid dynamics, acoustics andseismic analysis

Chiyoda Corporation

PLE:

Capital investment
Capital investment
planplanChiyoda Corporation
Chiyoda CorporationChAS

Chiyoda Kosho Co., Ltd.
Chiyoda Keiso Co., Ltd.

Chiyoda Advanced
Solutions Corporation
Overseas Group Companies(Including GES)

Chiyoda TechnoAce Co., Ltd.

Establish PLE system, store information in database, and commoditize system/data with partners including customers.

Blueprint for the Expanding
Estimated revenues
LNG plants
Gas facilities

700 – 800
billions of yen

Petroleum &petrochemicals
Chemiclals
Resorce development
Environment & others
Non-EPC460
billionsof yen

March 2009
forecast

In five years

Blueprint for the Growth（Revenues）
10,000
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,0000（Recurring profit）
800
700
700 - 800

Revenue

49.0

460

600
500
400

(Billions of yen)
Non-EPC
Environment &others
Resorcedevelopment
Chemicals

300

Petroleum &petrochemicals
Gas facilities

Recurring200

LNG Plants

16.0

100

Recurring proft0
Forecast for
March 2009

In five years

Earnings Distribution
Payout ratio
35%

30%

30%
25%

19.9%

20%
15%
10%

8.8%

9.9%

05/3

06/3

12.3%

5%
0%
07/3

08/3

09/3
ForecastIncrease Corporate ValueBusiness
Businessstrategy
strategy

Capitalstrategy
strategy
CapitalIncrease
Develop and enhance growth businesses

corporatevalue

Strengthen technical capabilities
Expand fields of operations

Keep core competencies strong

Expand area of business

Strengthen capital and business alliances

Accelerate reforms

Ain for 30%
High payout
ratio
EnhanceStrengthenbusinessmanagement
performance

M&A and alliances

Increase rating in capital market

Increase shareholder valuePlease address inquiries to:
IR & Corporate Relations OfficeTel: +81-45-506-7538
Fax: +81-45-506-7085
e-Mail: CHYOD@ykh.chiyoda.co.jp
URL： http://www.chiyoda-corp.com

Forward-looking Statements
The forecasts and plans in this presentation are based on information available to management on May
14, 2008, the date these materials were prepared. Actual results may differ significantly from these
forecasts for a number of factors, including but not limited to changes in economic conditions andoperating environment in Japan and overseas.