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

The Tele-Conference was held in Japanese.
Yokohama, February 20, 2019

This document is a translation/ summary for

IR, PR & CSR Department

reference only.

E-Mail: ir@chiyodacorp.com

Transcript (Translation) of the Briefing of theFinancial Results for the Third of the Year Ending March 31, 2019
Chiyoda Corporation (“Chiyoda”, TSE: ISIN: JP3528600004) released the financial results of its 3rd Quarterof the Fiscal Year Ending March 31, 2018, on February 13, 2019. A presentation to present the Company'sOperations and Finance update was held on the same day at 16:45 p.m. (Japan Standard Time) in Tokyo.
The following is the summary (translation) of the Q&A at the tele-conference.

Question

AnswerOn the Financial results of its 3rd Quarter of the Fiscal Year Ending March 31, 2018
Chiyoda is in negotiation with the customer to get theAlthough the reason of the cost are similar to theadditional cost of Cameron LNG reimbursed. Onadditional costs recorded in 2Q (rising labor costs

what basis do you believe cost this time it can beandrecovered as the causes are (expensive labor costs

environment in the labor market is beyond thepaired with low productivity) same as in the 2Q?

control of the contractor. We are negotiating withlowproductivity),

thecurrent

severethe client taking account of this special situation.
Is it Chiyoda’s understanding that the scheduled

Yes this is correct.

completion date of Cameron LNG's project for the
1st Train is around April-June 2019 as former
announced by McDermott?
Are the 3Q additional cost recognized for theYes,

bothCameron LNG in line with McDermott accounting?

understanding.

companies

haveanaligned

On the balance sheet
Is the “Provision for loss on construction contracts”

The increase in “Provision for loss on constructionof the 3Q equal to the sum o the additional costs ofcontracts” is due to these additional costs.

Cameron LNG etc?
Comparing 2Q and 3Q, what are the reasons ofThe position of Cash Deposit and Jointly controlledchanges in balance of Cash and Deposits, Accounts

asses of joint venture reduced along the progressreceivable from completed construction contracts,of large scale projects. Accounts receivable from1

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

Accounts receivable, and Jointly controlled asses ofcompleted

construction

contracts

decreasedjoint venture changes?

mainly due to completion of Yamal LNG Project.
Increase of the Accounts receivable is mainly due
to replacement payments at the Ichthys LNG
project in Australia.

What is the forecast for the “Cash Deposit” balance

While for certain new large scale projects wefor the end of this fiscal year?

expect down payment, we carefully monitor andbalance the amount of that it will not to hinder
ongoing operations.

On the corporate planning
How to evaluate the chances that the full-year

We are currently in negotiating with some

forecast will not be reached?

customers, assuming to recover the additionalcosts of the 3Q by the end of the Fiscal Year.

Regarding the size of the needed financial support,

At this point I cannot go into details of the capitalwill it match loss this this fiscal year or is it anrestructuring plans. Please refer to the frameworkanticipated to cover beyond it?

presentedinthe“RevisitedMedium-TermManagement Plan” documents.

Note: Some additions and corrections were made to make the content easier for readers to understand.

Any projections included in these materials are based solely on information available at the time this presentation 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 be construed in any way as being guaranteed by theCompany. Investor are recommended not to depend solely on these projections for making investment decisions.

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