CONTENTS
1	Purpose / Corporate Philosophy /Business Vision

Value Creation Story

Business Strategy

2 Chiyoda Group’s Purpose

41	Business Domains / Business Models

6	History of Transformation and Growth42	Low Carbon and

8 Chiyoda Group’s Strengths
10	Chiyoda Group’s
Value Creation Process
12 Engineering Value

Towards Sustainable Growth

Carbon Recycling Initiatives

46 Energy Management Business48 Life Science Business
50 O&M-X Solutions Business

22 Message from the CFO	Foundation Underpinning
Sustainable Growth24	The Medium-term Management Plan:

54 Corporate Governance

16 Message from the CEO

Chiyoda’s Revitalization Plan

60 Messages from Outside Directors– Initiatives for Revitalization and

62 Risk Management

the Future
26	Sustainability Roundtable Discussion
32 Human Resource Management

Enriching Society through Engineering Value

Corporate Philosophy

66 Compliance
67 Safety Management
68 Intellectual Property Initiatives

38	Accelerating Companywide
Digital Transformation (DX)

Purpose44 Hydrogen Business

Data Section
72 Key ESG Data
74 Eleven-Year Summary
76 Corporate Information

Enhance our business in aiming for harmony between energy and theenvironment and contribute to the sustainable development of society as
an integrated engineering company through the use of our collective
wisdom and painstakingly developed technology
Every Chiyoda Group employee engages in corporate activities with this philosophy as we strive
for corporate group management that earns the trust and empathy of all of our stakeholders,
including shareholders, customers, business partners, employees, and local communities.

Editorial Policy Disclaimer 

CHIYODA REPORT 2023 is a communication

CHIYODA REPORT 2023 is forward-looking,tool to inform all stakeholders, including share-

compiled from information available at the time

holders, investors, business partners, custom-of release, and actual results may differ materi-ers, directors, employees, and society, of theally from statements made within it.

Chiyoda Group’s management policies, busi-

Business Visionness strategies, financial status, corporate
values, growth potential, and activities towardrealizing a sustainable global society.
We continuously strive to improve the­quality of information contained in the reportto strengthen stakeholder awareness of the

A Grand Opportunity for the Future
The Chiyoda Group is committed to being an Innovative Company shaping the future of energy andthe global environment with passion and cutting-edge technology.

Chiyoda Group.

		

Refer to the following website for further information on the Chiyoda Group.

https://www.chiyodacorp.com/en/

1

Value Creation Story

Value Creation Story

Chiyoda Group’s Purpose

Why Does
the Chiyoda Group Exist?
Enriching Society through Engineering Value
The Chiyoda Group is committed to realizing ‘what society hopes for’ through engineering value.
We continue to design and engineer, with passion and empathy, a sustainable future for the Earth andprosperity for its inhabitants by unifying technologies and expertise from around the world.

This is our purpose,
which will remain through the ages.
Today’s society faces many complex challenges, such as limited global resources, climate change, natural
disasters, geopolitical upheaval, limited guaranteed energy reserves, food and water supply instability, andsocial changes due to declining birthrates and aging populations. None of these issues can be resolved by asingle entity, and to prevent them from accumulating for future generations, we must all share a new vision of
the future and work together through collective strength.
Since its founding under the philosophy ‘Serving Society through Technology’ in 1948, the Chiyoda Group has
applied its engineering and technological excellence in the construction of infrastructure to benefit society. Under
our corporate philosophy of ‘Energy and Environment in Harmony,’ we continue to collaborate in partnerships withrespected international organizations to support the realization of a sustainable global environment.
To conquer these social challenges and progress forward, the Chiyoda Group has expanded its mission androle as an integrated engineering company. We have established ‘Enriching Society through Engineering Value’
as our purpose, reflecting our desire to ‘create a sustainable and prosperous future for people and the Earth bydelivering engineering and technological solutions to enrich society and uniting expertise and experience fromaround the world with passion and empathy.’
Solutions to enrich society evolve over time and the Group will continue developing our vision, advancing
innovative technological solutions and collaborating with respected international organizations in a ‘One Team’environment for the benefit of communities with diverse cultures, values and abilities around the world. We willcontinue to meet the challenges of creating a society where all people can live in peace and prosperity to leave
a positive legacy for future generations.

2

Chiyoda Corporation CHIYODA REPORT 2023

3

Value Creation Story

Chiyoda Group’s Purpose
Value Creation Story

Chiyoda Group’s Concept ofEngineering Value

The Chiyoda Group’s Origins
Our Founding Philosophy of ‘Serving Society through Technology’ 
The Chiyoda Group was founded as a pioneering engineer-

The Chiyoda Group has applied its founding philosophy

ing company committed to resolving social issues withof ‘Serving Society through Technology,’ expanding andadvanced technology over 70 years ago, following the spinoff

increasing its engineering capabilities in parallel with soci-of the engineering division from Fuji Industry Company Ltd,

ety’s evolving requirements.

part of Mitsubishi Oil Co. Ltd, after the breakup of the zai-Engineering New Social Value
with Our Purpose as the Starting Pointbatsu conglomerates after World War II.

‘Is this for the good of Japan, for the benefit of the country?’‘Be a conscientious and proud employee of Chiyoda.’

The Chiyoda Group’s passion for engineering stems from

By consolidating the proficiency of all personnel

a desire to enrich society’s future. Our strategy to achieve

towards achieving this common vision, the Chiyoda

this vision is to unite human and other resources and unify

Group aims to be pivotal in this ‘engineering value’ chain

engineering expertise to deliver innovative solutions foras we continue striving to realize a sustainable and pros-

As the founder of Chiyoda, Akiyoshi Tamaki developed the Company as an advanced engineering

the benefit of the international community.

perous future for people and the Earth.

enterprise by focusing on technologies for the chemicals industry, supporting the growth of a national

This value creation drives original and enterprisingFounder Akiyoshi Tamaki

plant engineering industry by delivering pioneering technological solutions to its customers.
Since its founding, Chiyoda has emphasized that industrial growth must embrace the needs of theinitiatives to enrich society and an ‘engineering value’natural environment through its philosophy of ‘Energy and Environment in Harmony.’

chain to realize our vision.

Our Businesses and Services

EPC

Basic
DesignProblemsolving
Capability

Business
Planning

Customers
Partners

Chiyoda Group’s
Strengths

Operation &Maintenance

QualityandSafetyChiyoda Group’s
PurposeIntegrative
Ability

Licensing

Ambition
Sincerity
PassionVisionof the Future

SocialImplementation

Trust
Globalization

R&D

Chiyoda Group

4

Energy and Environment in Harmony TechnologicalExpertiseand DX

EnrichingSocietythroughEngineering
Value

Project
Execution
Capability

Chiyoda Corporation CHIYODA REPORT 2023

Spirit that Transcends Generations

Academia

Value
Creation

A sustainable
andprosperous
future forpeople andthe Earth

Focusing on the issues of rapid economic growth andWe will continue contributing to carbon neutrality byenvironmental preservation, the Chiyoda Group publishedcombining our corporate strengths with technological

Legacy for the Twenty-first Century in 1972, advocating theinnovation and creating new value in engineering to support

advancement of the human race in harmony with nature,

the global drive towards

while declaring its commitment to resolve energy- anda carbon-free, hydrogen-environment-related challenges through engineering andbased society.

technological development.

Business
Investment

In the 50 years since this declaration, the Group has

Investors

PublicSectorLocal
Residents

continued to build on its progress under the philosophy of‘Energy and Environment in Harmony.’

Stakeholders

5700,000

Value Creation Story

Value Creation Story

History of Transformation and Growth

600,000

A History of Transformation, Growthand Meeting the Social Challenges ofEach Generation ThroughEngineering Expertise

500,000

400,000

300,000

Revenue(Millions of yen)
200,000

Foundationof Chiyoda
100,000

1947

1949

1951

1953

Social Changes
and Challenges

Applying Engineering
Expertise in Response
to Social Issues

Trajectory ofTransformation
and Growth

1955

1957

1959

1961

1963

1965

1967

1969

1971

1973

1975

1977

1979

1981

1983

1985

1987

1989

1991

1993

1995

1997

1999

2001

2003

2005

2007

2009

2011

2013

2015

2017

2019

2021

Founding of Chiyoda

Initial Transformation

Second Transformation

Future Growth

1948–1970

1971–1990

1991–2018

2019–

(FY)

0

Growing demand for oil

Market changes resulting from two oil crises

Increase in global demand for LNG

	Accelerating transition towards decarbonization and carbon neutrality

Period of high economic growth	Accelerating overseas production under the Plaza Accord(period of strong Japanese yen)	Increase in global needs to address climate change andenvironmental preservation

Innovation of AI and digital technologies

	Contributing to the stable supply of petroleum and petrochemical
products through the construction of overseas petroleum andpetrochemical plants

	Contributing to meeting expanding LNG demand through theconstruction of large-scale overseas LNG plants

	Contributing to the stable supply of clean energy and the transition
towards carbon neutrality

	Promoting ‘Companywide internationalization’ and full-scale
overseas expansion

	Establishing a position as a global leader in LNG plant
construction	Publishing Legacy for the Twenty-first Century and promoting‘Energy and Environment in Harmony’	Expanding into renewable energy, general industrial facilities andmetal resources	Positioning decarbonization, carbon neutrality and life science as
growth areas and developing businesses through the applicationof energy plant construction expertise and experience	Contributing to Japan’s postwar
industrial reconstruction
	Proactive engineering in the petroleum and petrochemical industries
	Restoring, constructing andmodifying refineries and petroleum
refining facilities in Japan	Entering LNG plant construction(completed first LNG plant in Abu Dhabi in 1976)

Environment
Technology

Commencing full-scale environmental conservation

Developing the proprietary technology SPERA Hydrogen™

Developing CT-121® flue gas desulphurization technology

Commencing CCS*1 initiatives

Reinforcement of life sciences technologies

	O&M-X solutions using digital AI in collaboration with
Chiyoda X-One Engineering Corp.

	Completing the world’s first international hydrogen supply chain
demonstration project using Chiyoda’s proprietary SPERA
HydrogenTM technology
	Developing carbon neutral technologies, including new ammonia
production, CO2 separation/capture, and CCU*2*1 Carbon dioxide capture and storage*2 Carbon dioxide capture and utilization

Projects

6

1960

1969

1977

1984

2004

2014

2020

2021

Mitsubishi Oil Co., Ltd.:
Secured order for Mizushima
grassroots refinery

Fuji Oil Company, Ltd.’s
Sodegaura Refinery:
Secured order for expansionof No. 2 plant

Secured order for the Kaduna
Refinery for NNPC (Nigeria)

Constructed thePetromin-Mobil Yanbu
Refinery (Saudi Arabia)

Secured orders for LNG
plants for Qatargas Operating
Company Limited(Plants 3 & 4)

SOL de Omura Mishima:
Secured an order for solar
power generation facility

Completed demonstration of
the world’s first internationalhydrogen supply chain(Brunei-Kawasaki, Japan)

Executing the large-scale
North Field East LNG projectin Qatar

Chiyoda Corporation CHIYODA REPORT 2023

Photo courtesy of Advanced Hydrogen
Energy Chain Association for technology
Development (AHEAD)

7

Value Creation Story

The Chiyoda Group continues to apply unique competitive strengths to drive sustained growth, based on its founding principles, its 70-year history as an integrated engineering company and continuous improvements to its tech-

Value Creation Story

Chiyoda Group’s Strengths

Examples of the Chiyoda Group’s Combined Strengths

nological expertise.

Quality and Safety
As demonstrated by a successfulproject execution track record, ourrisk management plans and procedures ensure the safe delivery of
reliable industrial facilities thatexceed customer quality
parameters.

Problem-solving
Capability
Consistent with our founding philosophy of ‘Serving Society throughTechnology,’ we combine state-ofthe-art technology with engineeringexpertise and project execution
excellence to deliver solutions thatconquer the challenges faced bycustomers and modern society. We
continue to work collaboratively
with customers and joint
venture partners to provide
optimum solutions to the increasingly complex challenges faced by
the international community.

Project Execution
Capability

Technological Expertiseand DX

Quality and
SafetyProblemsolving
Capability

Project
Execution
Capability

We have a track record of
executing projects withcustomers and all otherstakeholders as ‘ONE TEAM.’
The Chiyoda Group is accelerating
Companywide digital transformation to drive the development of
new and existing businesses, as
demonstrated by Chiyoda AWP, aproject management tool using
digital technology that packages
construction work throughintegrated management to
optimize the EPC process.

TechnologicalExpertiseand DX

Chiyoda Group’s
Accumulated
Strengths

The value of engineering relates tothe nurturing, connection andimplementation of underlying
technologies to satisfy the needsof society, industry and customers.
We will continue to enhance ourtechnological capabilities andaccelerate DX through resoluteself-refinement, while upholding
our tradition of valuing
technology and developing
technically proficient engineers.

Trust

Trust
Integrative
Ability

Globalization

Since its founding, the Chiyoda
Group has continued to foster
successful long-term working
relationships with customers
and partners worldwide, basedon a ‘One Team’ culture of honesty,
trust and mutual respect, and by
applying our technological expertise to deliver solutions that
surpass customer expectations.

Case 01

Case 02

A Leading Company in LNG
Plant Construction

Early Completion of One of theWorld’s Largest Ethylene Plants

The design and construction of LNG plants, which cool

Despite the COVID-19 pandemic, the Chiyoda Groupand liquefy natural gas to -162 °C, requires advanced

completed the design and construction of the world’s

technical expertise and execution capabilities.

first ‘fully modularized’ 1.8 million ton/year ethylene plant

The Chiyoda Group has the largest share of thein the USA in 2021, within a shortened delivery period.

global LNG plant construction market.

Photo courtesy of QatarEnergy

Photo courtesy of Gulf Coast Growth Ventures

Case 03

Case 04

Completion of the World’s FirstInternational Hydrogen Supply
Chain Demonstration Using
Proprietary Technology

Early Completion of
One of the World’s
Largest Storage
Battery Systems

The Chiyoda Group successfully developed their

In March 2023, the Chiyoda Group completed of one

proprietary SPERA HydrogenTM technology usingof the world’s largest battery energy storage systems

dehydrogenation catalysts developed in-house. The(BESS) in Hokkaido, half a month earlier than plannedsystem utilizes methylcyclohexane (MCH) as the liquid

despite adverse weather conditions, and have sinceorganic hydrogen carrier (LOHC), enabling hydrogen

received a twenty year plant maintenance contract toto be safely and reliably stored in large quantities andsupport its stable operation. Chiyoda collaborated withtransported over long distances under ambient condi-

the client to safely deliver the optimal solution totions, and facilitated the completion of an international

regional power system restrictions and deliver a stablesupply chain demonstration project* in December

power supply supporting further ­development of wind2020. Social implementation plans are progressing,power generation, exemplifying Chiyoda’s ‘One Team’with the goal of achieving large-scale commercialization

project execution culture.

later this decade.

Integrative Ability

Globalization

We deliver optimal solutions by
integrating diverse technologies and expertise in the construction of industrial facilities
that are becoming larger, more complex andmore sophisticated.

We have actively participated in theengineering, procurement and construction (EPC) of advanced industrial facilities in over 60 countries worldwide andwill continue to be a leading integrated
engineering company on the global stage.

*A dvanced Work Packaging

8

Chiyoda Corporation CHIYODA REPORT 2023

Dehydrogenation plant at Kawasaki Waterfront* Chiyoda Corporation, Mitsubishi Corporation, Mitsui & Co., and Nippon Yusen formed
the Advanced Hydrogen Energy Chain Association for Technology Development(AHEAD), a research association for next-generation energy chain technology subsidized by the New Energy and Industrial Technology Development Organization (NEDO).

Battery Energy Storage System (BESS)

9

Value Creation Story

Value Creation Story

Chiyoda Group’s Value Creation Process
As an integrated engineering company with a commanding presence in the global energy supply industry, theChiyoda Group applies engineering expertise and technological proficiency to deliver optimum solutions to customers as we address society’s modern challenges. Our vision to enrich society evolves with its ever-changing
needs and we will continue creating value that leverages our accumulated strengths and collaborating with stakeholders who share our vision to engineer new value and implement innovative solutions in a society with increasingly diverse and complex challenges.

Process of value creation leveraging our accumulated strengths
Chiyoda Group’s Priority
Management Issues

Economic Value

Diversification
and Complexityof Social Issues

Our Vision for 2030:
Create new value
in engineering

Our Businesses and Services

EPC
Limited resources

Basic
DesignProblemsolving
Capability

Global warming

Business
Planning

Partners

Chiyoda Group’s
PurposeIntensification ofdisasters
Integrative
Ability

Licensing

R&D
Social changes
due to declining
birthrates andaging populations

10

Chiyoda Corporation CHIYODA REPORT 2023¥

30 billion
or higher

New business

15%

Ambition
Sincerity
PassionVisionof the Future

SocialImplementation

Value
Creation

FY2022

Existing
business

85%

A sustainable
andprosperous
future forpeople andthe Earth

2 Early
realization of ahydrogen-basedsociety3

Trust
Globalization

Concerns aboutstable food andwater supplies

FY2030Consolidated
net profit of

by deepening existing
businesses andcreating andstrengthening new
businesses

TechnologicalExpertiseand DX

EnrichingSocietythroughEngineering
Value

Project
Execution
Capability

Academia

Operation &Maintenance

QualityandSafetyStable supply
of clean energy
1

Innovate thebusiness
portfolio

Customers

Chiyoda Group’s
Strengths

Engineering ValueBusiness
Investment
Investors

PublicSectorLocal
Residents

Newbusiness50%

FY2030Contributing
to realizing
carbonneutrality

Existing
business

50%
Contributing
to healthy andfulfilling lives
4

New businessChiyoda Group

Stakeholders

Hydrogen andcarbon cycling,
renewable energy,
energy management,
life science

Existing business
LNG and gas, petroleum
and petrochemical, metals,
industrial facilities

11

Value Creation Story

The Chiyoda Group is creating new engineering value through digital transformation and other initiatives to realize
a sustainable and prosperous future for people and the Earth.
1

Stable Supply of Clean Energy

Promotion of Cleaner LNG
The Chiyoda Group will continue to promote the development ofcleaner LNG to reduce CO2 emissions, in line with rising demand for
LNG and its increasing significance as a transitional energy source as
the global drive towards decarbonization gains momentum.

 onstruction of One of the Largest and Most
C
Environmentally Friendly LNG Plants in the WorldThe North Field East LNG project (NFE LNG Project) for Qatargas in
Qatar, comprising four LNG trains with an annual production capacityof 8 mtpa each and being executed in a joint venture partnership withTechnip Energies of France, is one of the largest and most environmentally sustainable LNG plants in the world.
When fully operational, the NFE LNG Project trains will emit 25% less
CO2 than similar mega-trains. 20% of this reduction will be achieved
through a large Carbon Capture and Storage (CCS) plant, where CO2
is extracted from the feed gas andcompressed for re-injection underground, avoiding discharge to theatmosphere.
The balance is achieved throughimproved energy efficiency using
As of March 2023,
Waste Heat Recovery Units (WHRUs)
Courtesy of Qatargas

installed on Gas Turbine Generator (GTGs) exhausts to recover heatfrom flue gases. Greenhouse gas (GHG) emissions are also reduced
using technologies to cut NOx emissions.

 doption of Electrification Technology to ReduceA
CO2 Emissions
The Freeport LNG project is a world-class natural gas liquefaction andexport facility in the USA completed in 2020. The plant utilizes an electric motor (E-Drive) cooling system in lieu of gas turbines, contributing
to reduced emissions, shorter restarts, increased operating flexibility
and improved efficiency.

3

Contributing to Realizing Carbon Neutrality

Technological Developments Relating to CO2Alternatives and CO2 Capture and Use

Participation in Demonstration andBasic Engineering Projects

Chiyoda is working on the development and demonstration of technology to realize a decarbonized society through alternative energy
sources that either do not emit CO2 or capture and use emitted CO2,
aiming for commercialization by 2030.

Chiyoda is involved in demonstration and basic engineering projects
with the aim of achieving the practical application of technologies, particularly in the carbon neutrality field. By working with customers fromthe demonstration stage, we accumulate expertise that leads to thecreation of new projects and the receipt of orders.
In this section, we discuss two examples of our work.

Alternative energy

CO2 capture and use

With no CO2 emissions

Using CO21

CO2 separation and capture(solid absorption method)
Manufacturing Manufacturing ethylene*
from CO2 and waternewammonia
Manufacturing paraxylene*2
from CO2 and hydrogen

1

Expanding Copper Supplies to Support theRealization of a Decarbonized Society
Copper has outstanding conductivity compared to other metals and isused in electrical components in areas such as wiring, storage batteries, motors and electric vehicles (EVs).
To meet demand, the Chiyoda
Group is constructing a copper smelting plant in Indonesia with one of theworld’s largest single-line production
capacities—480,000 tons per year—
Courtesy of PT
for PT Freeport Indonesia.

Value Creation Story

Engineering Value

SPERA HydrogenTM

Use of solid CO2 in
concrete materials*1 Basic chemical*2 Raw material for polyester onstruction of One of the World’s Largest CO2
C
Methanation*3 Test Facilities

Chiyoda has been awarded an EPC contract for one of the world’s largest
CO2 methanation system test facilities of 400 Nm3-CO2/h capacity,equivalent to the quantity of methane consumed by approximately
10,000 Japanese households per day, for INPEX and Osaka Gas aspart of a project subsidized by NEDO to develop the practical application of technology enabling carbon neutralization of natural gas.
*3 Technology for synthesizing methane from CO2 and hydrogen2Construction of 1 BD*4 Synthetic Fuel Production
Test Plant

As part of a NEDO Green Innovation Fund Project, Chiyoda has been
awarded an EPC contract by ENEOS for a test plant aimed at rapidly
establishing technology for synthetic fuel production using hydrogenand CO2 as raw materials.

Freeport Indonesia*4 Barrel per day

2

Early Realization of a Hydrogen-based Society

Conceptual Design of a Hydrogen Supply Chain
in Singapore
Chiyoda has commenced conceptual design work for the commercialization of a hydrogen supply chain in Singapore, leveraging our proprietary SPERA Hydrogen technology together with technology from
Sembcorp Industries, one of Singapore’s largest renewable energy
companies, and Mitsubishi Corporation to transport clean hydrogenfrom Australia and the Middle East to Singapore. Similar to Japan,
Singapore is heavily dependent on imported energy resources and theintroduction of hydrogen is key to the city-state’s sustainable future.

2023
Conceptual
design inprogress

Development of a Hydrogen Supply Chain Business
in Europe

Planned commencement ofcommercial operation(scheduled to supply approximately 60,000
tons of commercial hydrogen per year)

Commercial-scale import ofIllustration of the hydrogen highwayhydrogen to the Port of Rotterdam
between Scotland and Rotterdam
in The Netherlands is under examination

12

Chiyoda Corporation CHIYODA REPORT 2023

Contributing to Healthy and Fulfilling Lives

Providing High Value-added Solutions in Life Science

Chiyoda is actively participating in hydrogen import and hydrogen highway initiatives in Europe.

2026

4

As the study of living things, Life Science connects technical fields
encompassing sustenance (food), life (medicine and medical care) andliving (chemistry and environments). The Chiyoda Group will continue
leveraging its experience accumulated through the design and construction of over 1,000 facilities in this field to provide high value-added
solutions on a customer-driven basis.

Pharmaceutical Fields
Accelerating Pharmaceutical-related Engineering
The Chiyoda Group will also continue leveraging our more than 60
years of experience constructing over 620 pharmaceutical plants toaccelerate the construction of vaccine constituent production and­biopharmaceutical manufacturing facilities, and will further expand into nextgeneration pharmaceutical products
and bioindustry.

Application of Technology Cultivated in the Petrochemical Field
The introduction of continuous production technology to replace conventional batch production in manufacturing shortens development
times, saves labor, improves efficiency and enhances quality control.
The Chiyoda Group has entered into a joint venture with Shionogi Pharma to form Pharmira Co.,
Ltd, which engages in the contract development
and manufacturing of active pharmaceuticalingredients and intermediates, and will continue
contributing to the introduction and implementation of continuous production technology cultivated in the petrochemical field in thepharmaceutical field.
The Pharmira building

A vaccine constituent
manufacturing facility
constructed by Chiyoda for Shionogi

13

Towards
Sustainable
GrowthIn this section, we introduce our strategy and initiatives to realize the sustainablegrowth of the Chiyoda Group and a sustainable society.

CONTENTS 
16 Message from the CEO
22 Message from the CFO
24	The Medium-term Management Plan:
Chiyoda’s Revitalization Plan
– Initiatives for Revitalization andthe Future
26 Sustainability Roundtable Discussion
32 Human Resource Management
38	Accelerating Companywide
Digital Transformation (DX)14

Chiyoda Corporation CHIYODA REPORT 2023

15

Towards Sustainable Growth
Towards Sustainable Growth

Message from the CEO
Based on our purpose of ‘Enriching Society throughEngineering Value,’ we will create social value andachieve sustainable growth by continuing to contributeto the realization of a decarbonized society.

Recognizing the Rewards of
Our Revitalization Plan

and carbon recycling, hydrogen, energy management and life science.
Our tireless endeavors since the release of our

Masakazu Sakakida
Chairman of the Board, President & CEO
CSO*1 & CWO*2*1 Chief Sustainability Officer*2 Chief Wellness Officer

We have transformed our management structure

Revitalization Plan are reaping real rewards, suchbased on our Medium-term Management Plan,

as exceeding ¥15 billion consolidated net profit in‘Chiyoda’s Revitalization Plan - Initiatives forfiscal 2022, a ten-year high, and I am confident

Revitalization and the Future,’ released in 2019

that, with your continued support, the Company

and revised in 2021. We have built robust com-will maintain its current trajectory and resume its

mercial foundations for revitalization and growth tocommanding position in the global energy market.

realize our ‘Vision for 2030’ and transformed ourbusiness portfolio. This renaissance reaped tangible rewards in fiscal 2022 as we recorded further
expansion in our earnings base. The evolution of a

Our Purpose Aiming forTransformation and Growthsophisticated risk management system and ourdexterity in addressing the difficulties faced in our

The Chiyoda Group announced a fresh purpose

rapidly changing business environment, such as

in July 2023 of ‘Enriching Society throughunexpected cost increases due to global inflation,

Engineering Value.’ Although we have generated

procurement and logistical challenges as a fallout

steady progress towards achieving the goals of ourfrom COVID-19 and the geopolitical crisis in2019 Revitalization Plan with the aim of realizing

Ukraine, are fundamental to our success. Our skill

our established corporate philosophy of ‘Energy

in addressing these challenges meant that weand Environment in Harmony,’ this is the final year

were able to meet material and equipment pro-of the Plan and, we need to advance to the next

curement and transportation schedules to ensure

stage as we look to the future. Our vision forthat ongoing large-scale projects in Qatar, the USA

society’s future continues to evolve with its ever-and Indonesia continued as planned with minimalchanging needs and, along with our corporate

impact. Consistent with our ‘One Team’ project­philosophy, our new purpose will guide our

execution philosophy, we also collaborated withthoughts as we reflect upon ‘Why does thecustomers and partners to recover the impacts of

Chiyoda Group exist?’ and ‘What does theforce majeure events, ensuring continued profit-

Chiyoda Group aspire to be?’ Over 100 partici-

ability from existing projects.

pants, from top and middle management to

Key to the effective transformation of our busi-

16

Chiyoda Corporation CHIYODA REPORT 2023

younger, less experienced employees, attended

ness portfolio is the continuing growth of new‘Purpose Design Sessions’ from April to June­businesses, as demonstrated by the increasing

2023, to focus on the meaning of our existence,

requests for basic engineering and demonstrations

visualize our future and progress the group fromin our four key business domains of low carbon‘Revitalization’ to a ‘New Birth’ stage.

17

Towards Sustainable Growth

Using external and internal analysis, we discussed
themes such as ‘The uniqueness of the Chiyoda

Our Mission of Contributing to
Decarbonization

through the implementation of technology, such asorders are expected in the future. As a majorcarbon capture and storage (CCS) systems anddevelopment concept, we will also advance moreGroup and the meaning of our existence’ and ‘My

the electrification of cooling equipment at LNG

environmentally friendly LNG with lower CO2 emis-

personal vision of where I want to be in the future’ to

The Chiyoda Group is committed to decarboniza-

plants (E-Drive), as far as is reasonably practicablesions. Expanding stable earnings is central to theestablish the type of company we want to be andtion as a major challenge facing society and we

considering commercial viability.

Revitalization Plan and is achieved through thethe type of future we want to create. The purpose ofannounced the Carbon Neutral Declaration in April

As society transitions from more traditional

implementation of stringent and comprehensive‘Enriching Society through Engineering Value’2022 as a basis for reducing CO2 emissions andenergy sources such as coal, oil and gas towards

risk management procedures as we judiciously

expresses our belief that our raison d’être is to utilize

promoting carbon cycling. Contributing to a reduc-cleaner energy sources with reduced CO2 emis-

select projects that will not impede the successful

our engineering and technological prowess to con-tion in Scope 3 emissions (principally comprisingsions, including renewable energy and hydrogen,achievement of the Chiyoda Group’s overall

tribute to realizing what society hopes for and to

supply chain CO2 emissions) is a particular focus

we will continue to advance as an innovative engi-

objectives.

ensure a sustainable future for the Earth and pros-

area. Although the Group’s direct and indirect CO2

neering company, shaping the future of energy andperity for all its inhabitants. We all continue toemissions (Scope 1 and Scope 2) are minor, emis-

contributing to society’s sustainable development.

develop as individuals, but being cognizant of thesions from third party companies related to ourmeaning of our existence as a company, embrac-value chain business activities, including custom-

ing our purpose throughout the Group and advanc-ers, are significant, and we can contribute to

ing together in one direction to deliver what society

decarbonization by leveraging our engineering

hopes for, is key to delivering a bright and prosper-

expertise and technological proficiency to support

ous future for generations to come.

Towards Sustainable Growth

Message from the CEO

New Businesses
Accelerating Profit Contribution Growth by

Accelerating Business Portfolio
Transformation

Receiving EPC Orders and Exploring New
Business models
The completion of one of the world’s largest bat-customers in reducing their Scope 1 and 2 CO2

As part of our ‘Vision for 2030,’ we have estab-tery energy storage systems for a wind power gen-emissions. Global circumstances, such as thelished a profit contribution ratio of 50% between

eration facility in northern Hokkaido in March 2023

­geopolitical crisis in Ukraine, challenge the stable

new and existing businesses. As a result of our

exemplifies the growing contribution of energy

supply of energy and we help customers reduce

efforts in this area, the contribution of profits frommanagement to the accelerating global transition

the carbon intensity of existing energy sources

new businesses rose from approximately 10% in

to clean, renewable energy. The customer,

fiscal 2020 to 15% in fiscal 2022, and we will

Chiyoda Corporation and major subcontractors

continue to secure profits through the steadyand vendors worked as ‘One Team’ over a five-execution of projects in existing businesses while

year period to conquer many challenges, including

promoting the expansion of new businesses as

the extreme weather conditions of northernmost

we carry on transforming our business portfolio.

Hokkaido. The Group has also commenced a20-year O&M contract as we continue our cultureof collaborative project execution in the facility’s

Existing Businesses
Stable Earnings through Order Selection

18

Chiyoda Corporation CHIYODA REPORT 2023

operational stage.
As one of our four new business domains,

Our existing businesses continue to be pillars gen-hydrogen is becoming a key clean and reliableerating stable earnings. As of March 2023, we hadsource of energy. Having signed a memorandum

accumulated an order backlog of more than ¥1 tril-of understanding with ten companies and govern-lion, and are working to profitably execute thesements, including the Net Zero Technology Centre,

projects as planned. We continue to profit from ourto explore the feasibility of developing a hydrogen

LNG EPC business in line with rising demand forsupply chain in Singapore using our proprietary

LNG, particularly in Asia, and its increasing signifi-

SPERA Hydrogen technology, we have now

cance as a transitional energy resource as theentered into the Pre-FEED phase and are discuss-

worldwide drive towards decarbonization gains

ing full commercialization while continuing research

momentum, despite global challenges, including

and development to reduce costs and increase

supply chain disruption and global inflation in theefficiency. We are also a leading participant in a

fallout from COVID-19, and the geopolitical crisis inhydrogen marine transportation project exporting

Ukraine. Further LNG plant construction projecthydrogen from Scotland to Rotterdam in the19

Towards Sustainable Growth

Netherlands, and will establish a sustainable reve-a philosophy of collaborative project execution

nue model though licensing and catalyst sales whilebased on relationships, with open and honest

creating further EPC opportunities. The growth ofcommunication with customers, subcontractors

the profit contribution from our four new businessand suppliers, and we will continue to cooperatedomains of low carbon and carbon recycling,with clients to explore cost reducing, risk-sharinghydrogen, energy management and life science isarrangements.

Towards Sustainable Growth

Message from the CEO

expected to accelerate further.
The Group established ‘Chiyoda X-ONEEngineering Corporation’ in April 2023 through themerger of three domestic Group companies. The

Expanding and Advancing Human
Resources as a Key to Growth

name of the new company includes ‘Engineering’as our core business and ‘X-ONE’ in reference to the

Our most valuable asset is our human resources,

combination of Transformation (X) and ‘One Team’and effective management in this area is a key(ONE), representing ‘transformation through Chiyoda

competitive advantage, driving the Group’s growth.

Technology and One Team.’ Chiyoda X-ONE

Our human resource system, implemented as partEngineering Corporation advances our hybridof our Revitalization Plan, includes Human

maintenance business, combining operation andResources Officers (HROs) for each job category,

maintenance operations with transformation (O&M-

who report to a Chief Human Resources Officer

X) in solution services that leverage digital transfor-(CHRO) and human resource development that,mation (DX) in the O&M of customer facilities. The

through career-focused interviews with employees

new company will collaborate with other Groupto clarify their goals and desired career paths andcompanies and our business partners to imple-align them with the Company’s overall businessment our growth strategy in new business portfolio

objectives, supports employees in visualizing andareas, as well as traditional energy sectors, anddeveloping their future career path. Chiyoda under-

awareness, uniting as ‘One Team’ and embracing

ties, project competitiveness and organizationaldeliver solutions to customers more efficiently as

stands that the caliber of human resources is key

diversity, to enhance the collective strength of thecapabilities, including expanding and advancing

a consolidated Group though our combinedto the Company’s success and we continue toGroup.

human resources, operating income has increased

engineering and technological expertise anddevelop younger generation employees and mid-year by year in the four years since the release ofexperience.

career managers, diversifying their knowledge andour Revitalization Plan, and we have expanded ourexperience though job rotation. Chiyoda’s training

Enhancing Corporate Value

Stabilizing Earnings

stable earnings base, as demonstrated by ourconsolidated net profit exceeding ¥15 billion yen inprograms are consistent with employee ‘needs
and wants,’ developing the required skills andAs we enter the final year of our Revitalization Plan,

fiscal 2022. Our newly established purpose will

expertise for career progression regardless of age,

we will continue striving to achieve our ‘Vision for

accelerate the transformation of our business port-

gender or external factors.

2030’ and financial independence as soon as possi-

folio under the next Medium-term Management

Where internal resources need to be invested

ble, facilitating Prime Market listing on the Tokyo

Plan as we progress towards financial indepen-tion, we will continue to secure stable earnings

in new businesses, the Group is endeavoring to

Stock Exchange and delivering stable shareholder

dence and sustainable growth.

through the execution of projects in existing busi-

steadily execute large-scale EPC projects, which

dividends. We will promote Chiyoda’s philosophy ofnesses while also expanding new ones.

traditionally require a considerable number of per-executing projects as ‘One Team’ by intensifying our

Our Revitalization Plan is reaping tangible rewards
and, as we enter the next stage of our rejuvena-

sonnel, utilizing fewer employees by leveraging‘relationship-based’ approach during the next stage

price’ LNG contracts, coupled with the increase indigital technology and other techniques to increaseof our growth, maintaining open and honest com-larger, longer and more complex projects, carry­efficiency and add value.

munication with all stakeholders, including custom-

Commonly used traditional lump-sum ‘fixed20

While enhancing our risk management capabili-

oriented mindset, improving employee professionalsignificant cost and schedule risks for EPC con-

The Chiyoda Group comprises technical anders, partners, subcontractors and vendors, in the

tractors. Such contracts generally result in moremanagerial professionals delivering engineering

dissemination of financial and non-financial informa-

expensive projects as contractors allocate larger

and state-of-the-art technological solutions to cus-tion. We will continue to expand upon opportunities

financial contingencies to account for the increased

tomers for the benefit of society. We will continue

for productive engagement with shareholders andrisk, and this topic requires further collaborative

to realize our human resource development goals

investors to facilitate a deeper understanding as we

industry-wide debate. The Chiyoda Group values

to benefit our customers by promoting a customer

work together to improve corporate value.

Chiyoda Corporation CHIYODA REPORT 2023

Thank you for your understanding and continued
support.



Masakazu Sakakida



Chairman of the Board, President & CEO
CSO & CWO

21

Towards Sustainable Growth eview of Fiscal 2022 andR
Outlook for Fiscal 2023
We reported a consolidated net profit of ¥15.2 billion in fiscal
2022, an upward revision from the initial forecast of ¥11.5 billion, as a result of further sophistication of the risk management

proprietary technologies, such as SPERA Hydrogen, to creating a sustainable environment and a brighter, cleaner future.
We will continue accelerating the social implementation ofthese measures as we drive the transformation of our businessstructure in terms of finance and resource allocation.

structure announced as part of the Revitalization Plan and the(EPC) execution management capabilities, enabling us toImproving Business Earning Power andAsset Efficiency

safely execute world-class projects on schedule and within

In fiscal 2022, we introduced new business management indi-

cost parameters.

cators and upgraded our management accounting system toevolution of our Engineering, Procurement and Construction

In fiscal 2023, the final year of the Medium-term

Towards Sustainable Growth

Message from the CFO

strengthen budget and performance management on projects

Management Plan, we will further accelerate these measuresand visualize and enhance business segment profit structure

to increase stable earnings for the second consecutive year.

analysis. We will continue promoting measures to improve

We have also accumulated a backlog of contracts of ¥1.1 tril-

financial awareness among officers and employees as leverage

lion, approximately three years of sustained revenue, and are

to reform Companywide awareness of earnings and costs,

collaborating with customers and partners to minimize thewhile also improving operational efficiency to increase earning

impacts of global inflation.

power and asset efficiency.
We are also strengthening digital transformation (DX)

Reinforcing Our Financial Foundations
Strengthening our financial foundations is key to facilitating
business structure reform and responding promptly to changes
in the business environment, such as the accelerating global
transition to a decarbonized society.
We will continue increasing capital and further reinforce

Companywide, promoting the development of digital humanresources, fostering a DX culture though increased awarenessand enhancing the added value of our business model by­promoting digital transformation in the three areas of projects,
corporate and business, increasing our earning power andcompetitiveness.

our financial foundations by enhancing stable earnings growth

Enhancing Corporate Value

through the steady execution of projects in the backlog, whiletransforming our business portfolio and diversifying business

While the Group’s stable earnings base is expanding throughmodels and sources of earnings.

the steady progress of the initiatives contained within the

We will continue to improve profit/loss and cash flow fore-

Steadily advancing business restructuring andaccelerating financial measures
supporting enhanced corporate value­growing to become financially independent and ensure robust

strategic investments for sustained growth. By appropriately

commercial foundations, facilitating Prime Market listing oncontrolling consolidated fixed costs, we will also enhance our

the Tokyo Stock Exchange and providing stable dividends tocash position and financial structure while implementing rigor-

shareholders. Even with the success of our Medium-term

ous cash flow management.

Management Plan, we will intensify endeavors to realize our‘Vision for 2030’ while operating to the highest ethical stan- ptimizing Resource Allocation forO
Sustainable Growth
The Medium-term Management Plan achieves sustainablegrowth by transforming our business portfolio and earnings
structure, strengthening existing businesses and accelerating
new ones while optimizing allocation of human resources andfinances to improve corporate value.
We will continue to refine our risk management structure andCurrent Situation and the Role of the CFO

22

for the overall management of the Chiyoda Group’s financial

existing businesses and the four new business domains ofManagement Plan – ‘Chiyoda’s Revitalization Plan - Initiatives

activities while we continue to accelerate the implementation ofcarbon recycling, hydrogen, energy management and life sci-

for Revitalization and the Future’ in 2019, the Chiyoda Groupfinancial measures supporting business restructuring and sus-

ence. In addition to being a significant business opportunity,

has made steady progress in reforming its business structure

tained growth, as detailed in our ‘Vision for 2030’ in the 2021

society’s hope for the realization of carbon neutrality is thewhile strengthening our financial foundations. Since myrevised Revitalization Plan.

origin of our fresh purpose of ‘Enriching Society throughChiyoda Corporation CHIYODA REPORT 2023

dards, maintaining fairness, transparency and open dialogue
under a disciplined approach to corporate governance andstakeholder communication.
We remain resolutely committed to meeting the expectationsof our stakeholders and will augment our endeavors to continuously improve our corporate value by transforming our business structure and earnings in line with the Medium-termManagement Plan.
We appreciate your continued understanding and support.

further strengthen our EPC project execution capabilities inIn the four years since announcing the Medium-term

appointment as CFO in April this year, I have been responsible

Medium-term Management Plan, the Group will continue

casting on ongoing projects and secure funding to accelerate

Engineering Value’ as we apply our engineering expertise and

Atsushi Deguchi

Representative Director, Executive Vice President,

CFO & CCO

23

Towards Sustainable Growth

The Chiyoda Group released its Medium-term Management Plan, ‘Chiyoda’s Revitalization Plan – Initiatives
for Revitalization and the Future’ in May 2019 and revised it in May 2021 to reflect changes in the businessenvironment, such as the increasing drive towards a carbon-free society and the significance of emerging
markets with the potential for future growth.
The Group is reinforcing its business foundations for revitalization and growth to achieve its ‘Vision for2030’ objectives, published as part of the revised plan. We are fortifying stable earnings by reforming ourbusiness portfolio and creating new engineering value through digital transformation (DX) and other initiatives
in the four business domains of low carbon and carbon recycling, hydrogen, energy management and life
science, to realize sustainable growth and further improve corporate value.

Results from Fiscal 2019 to 2022 (Four Years of Revitalization)·E xpanded our stable earnings base through the implementation of sophisticated risk management,
evolution of EPC execution management capabilities, optimization of resource allocation and appropriate control of fixed costs.
·A ccumulated a ¥1.1 trillion backlog of contracts, equivalent to approximately three years of completed
construction projects on a sustained basis.
·E xecuted ongoing projects as planned and strengthened our financial position.

Quantitative Results

Revenue

Operating Income

Billions of yen

Billions of yen

600

400

30

430.2

385.9

342.0

315.4

311.1

0

2021/32022/32023/3–200

We are transforming our business portfolio to achieve a 50/50 ratio of
profit contributions from existing and new businesses by 2030.

600

1,331.0
1,126.1

1,016.4

New businesses

15%

Hydrogen and carbon cycling, renewableenergy, energy management, life science
Existing businesses

50%

50%

New
businesses

10%

0

85%

90%

2

30.0

15.2

8.0

3

2021/3(Result)

2023/3(Result)

2030(Target)Growth Strategy: A Grand Opportunity for the Future
The Chiyoda Group continues to reform its business portfolio to create new value in engineering through DX and initiatives

2023/3

1,148.9

811.8

30

40

36.7

24.9

20

-59.2

6.3

11.0

20

22.3

15.8 4.0

5.5–20

2019/32020/32021/32022/32023/3

0
–10

–17.1

–40
–60

10

2019/3–20

2020/32021/32022/32023/3–30

Equity Ratio (right)

Progress of Major Measures

Existing
businesses
Existing
businesses

2022/3%

Net Assets

1

Consolidated Net Profit

2021/360

300

Existing
business

2020/3

Billions of yen

1,500

0

New
business

2019/3

Net Assets / Equity Ratio

900

New
businesses

7.0

Billions of yen

Business Portfolio Transformation(Billions of yen)
Quantitative Target:¥30 billion or higher
in FY2030

2020/3

10.5–199.8Backlog of Contracts

1,200

LNG and gas, petroleum andpetrochemicals, metals, industrial facilities

2019/3

18.1

10

0

Vision for 2030

26.8

20

200

 e will continue to apply our advanced technological expertise to accelerate the implementation of hydrogen energy and the global transition to aWcarbon-free society to achieve carbon neutrality by 2050.
We will continue transforming our business portfolio and strengthening our earnings structure by rejuvenating existing businesses while accelerating new business initiatives.

Towards Sustainable Growth

The Medium-term Management Plan: Chiyoda’s Revitalization
Plan – Initiatives for Revitalization and the Future

Major Measures

Four-year ProgressImplementation of a
Sophisticated Risk
Management
Structure· Implementation of a sophisticated centralized risk management system across all stages of the project life cycle,
led by the Strategy & Risk Integration Division, and profitable projects awarded since the release of the revitalization plan dvancing EPC
A
Execution andManagement
Capabilities·F ull-scale implementation of Chiyoda AWP in major overseas projects to optimize EPC execution

 xpanding andE
Enhancing Human
Resources

4

Accelerating DX

5 usiness Portfolio
B
Transformation

Evaluationof Progress· A ¥1.1 trillion order backlog for large projects, such as NFE LNG in Qatar and a copper smelting plant in Indonesia·S trengthening the execution of construction operations, significantly improving project profitability, by establishinga new Construction Division in April 2020 and implementing human resource, subcontract management andorganizational enhancements· Introduction of a new Companywide human resource system in April 2021 (career categorization, improved­personnel evaluation and systematic training of organizational management human resources)·A ccumulation of human resource information and enhancement of employee career development through a
Human Resources Officers (HRO) system·A ccelerating DX and fostering DX awareness Companywide through a newly created CDO Office· Obtaining certification as a ‘DX-Certified Operator’ by the Ministry of Economy, Trade and Industry in December 2022·S teady progress in the development and creation of new businesses

in the four business domains of low carbon and carbon recycling, hydrogen, energy management and life science.
Stable supply of clean energy,
CO2 reduction and utilization

Low Carbon andCarbon Recycling

Optimizing energy utilization,
promoting renewable energy
and power storage

Realization ofa hydrogen-based society

EnergyManagement
Business

Hydrogen
Business

High value life sciencesolution provider

Life Science
Business

Priority Measures for Fiscal 2023 (Final Year of the Revitalization Plan) ontinue to secure stable earnings growth by consistently strengthening risk management and steady execution ofCongoing projects
Unrelenting enhancement of the management of human resources, our greatest asset
Sustained business transformation and development of new businesses through DX
Continue the development of new businesses and accelerate business portfolio transformation

DX

24

Chiyoda Corporation CHIYODA REPORT 2023

25

Towards Sustainable Growth

Enriching Society throughEngineering Value

Leveraging Technical and Execution Capabilities toSolve Social Issues with a Sense of Urgency
Senna Chiyoda’s most valuable asset is its employeesWith ‘Energy and Environment in Harmony’ as our corporate philosophy, the Chiyoda Group contributes to the realization of a sustainable society.
As we expand our business portfolio and reflect on the company that Chiyoda should strive tobe, we formulated a fresh purpose of ‘Enriching Society through Engineering Value’ in August 2023.
Young to mid-career employees participated in roundtable discussions regarding Chiyoda’svision, and how it should be achieved, with Chiyoda Outside Director Yutaka Kunigo.

and our greatest strengths are our technical and project
execution capabilities, accumulated since our foundation in
1948. We provide quality services and high added valuethat exceeds customer expectations, building a rapport
with our customers and society in general. That is our purKazuhiro Takimoto

Technology
Development
Department

pose to me. Our technical capabilities are acknowledged by
Takimoto While economic growth has traditionally beenrecognize Chiyoda’s technological expertise, which we

society’s main objective, people’s goals are now more multi-

Wataru Fujii­regularly demonstrate through external presentations andfaceted, as exemplified by the SDGs, and this trend will

O&M Transformation
Solution Business
Department

workshops. Many employees refine their expertise in engi-

continue. Society is experiencing dramatic changes in a

Toru Nishioka

neering and technological fields before moving on to projectmanner incomparable to the past. As previously mentioned,

Life Science Project
Department

management, which results in Chiyoda’s exceptional tech-collaboration with other companies is key and we at thenical and project execution capabilities.

Value Innovation Department are promoting open innovation

Yutaka Kunigo
Kei Katakura

Outside Director

Power & Green Energy
System Project Department

Introduction

to provide wide-ranging solutions to enrich a society withever-changing values. Examples include our collaboration

ing the uncertainty in our business environment from social,with partners on new business ventures and creating new

economic and political perspectives. This means that, as an

businesses to resolve social issues. We are also accepting

engineering company, we need to adapt to society’s everthe challenge of creating new business models thatchanging needs as we face increasingly complex and diffi-

strengthen our earning power, an area where Chiyoda his-

cult challenges. Rather than focusing on LNG plant con-torically requires improvement. Mr. Kunigo and Ms. Senna

struction and other large-scale projects that take manyare correct that our customers acknowledge our technicalyears to complete, as the number of small to medium-sized

and project execution capabilities, and adequate earning

projects has increased in recent years, we need to provide

power is essential for these capabilities to materialize. I hopeflexible services to complete such plants within shorterto see Chiyoda create new business models through open

timeframes. While it will still be necessary to proceed with

innovation and establish solid foundations, enabling us tolong-term research and development in parallel to support

provide unparalleled customer satisfaction in a rapidly

the realization of a sustainable society, in terms of our rela-changing society.

Engineering Safety, Fire andEnvironment Department,
Technology & Engineering Divisiontionship with customers and society, it could be argued that

We are currently in an energy transition, moving towards

Kunigo To me, the ‘engineering value’ referred to in ourcompany whose strengths are its technical and execution

new purpose means all stakeholders, including employees,

capabilities, we have an important part to play, and I am

customers, partners and shareholders, working together toconfident that we can fulfill our new role as a company.

create value. I was previously an employee at an energy

I also look forward to Chiyoda engineering value in areas

infrastructure company and have been involved withbeyond energy, as we transform our business portfolio in

Chiyoda from a variety of stakeholder perspectives. Myline with our ‘Vision for 2030.’

experience as a customer and partner during LNG plant

Today’s roundtable discussion was an ideal opportunity

construction projects left a particularly strong impression.

for me to learn how young to mid-career employees see

I was extremely impressed by Chiyoda’s technical capabili-

Chiyoda’s purpose as a company. We were able to discuss

ties in resolving challenging customer requests and creatinga wide range of topics, including their vision for the future,

innovative equipment, together with the Company’s ability

the efforts they are undertaking to realize that vision,

to execute extremely large projects according to plan.

Chiyoda’s strengths and the challenges we face.

Chiyoda Corporation CHIYODA REPORT 2023

Society’s needs are continually changing and haveundergone a significant revolution in recent years, increas-

Rie Sennaachieving carbon neutrality in 2050. As an engineering

26

Promoting Innovation to Enrich a Diversified Society

customers and I know that people outside the Company

Value Innovation
Department

Yui Kotani

Towards Sustainable Growth

Sustainability Roundtable Discussion

Creating new businesses and/or business models is not

we need to bring products and services into the world withsimply a case of applying new concepts. We must also

even greater urgency. I hope Chiyoda addresses social

conduct research and provide substantiation based on ourissues in numerous fields and provides solutions with aexperience. While new ideas are necessary, innovation cansense of urgency by leveraging our strengths in technology

only be achieved by accumulating technical expertise overand execution, and by working in collaboration with cus-

an extended period. As an engineering company, Chiyoda’s

tomers and partners as we strive to resolve shared global

strength is our intangible assets of experience and knowl-social challenges.

edge and colleagues with an abundance of each. To further

27

Towards Sustainable Growth

Chiyoda’s Implementation Capabilities and Realizing

leverage our company’s ability to assess technologies and‘Energy and Environment in Harmony’Towards Sustainable Growth

exist, and proposing ways to achieve that goal. I want us tocapabilities, then incorporate a wide variety of companies
into ‘One Team,’ leading projects that achieve goals andKotani Our purpose is to implement our engineering andresolving issues.

technological expertise to deliver optimum solutions to customers that benefit society. I am part of the Technology

Kunigo Our purpose of ‘Enriching Society throughDevelopment Department, and we ‘scale up’ technologies

Engineering Value’ has two aspects. The first is engineeringfrom customers and partners for practical application. This isenhance this strength and accelerate innovation, we need

the means by which society can be enriched. This is the

Leveraging Digital Technology to Optimize Solutions

the essence of engineering. Engineering companies collabo-

to consider how to efficiently deploy and utilize these intan-

area in which we have the greatest capabilities, having

for the Efficient Use of Existing Equipment

rate with partners to unite technologies in numerous fields

gible assets using new technologies.

established a track record over many years, and is also one

Actively Proposing Themes and Realizing Projects

for practical application in projects worldwide. In that sense,

in which society has great expectations. The other aspect isFujii Social conditions and our business environment are

they have great value. Our strength is our experience work-

engineering the concept of what enriching society looks

changing significantly, and Chiyoda’s purpose is to provide

ing on overseas projects while being based in Japan, which

like. This is what Mr. Nishioka was discussing. Although

optimal solutions to deliver world-class projects, and tohas an abundance of technologies with outstanding poten-

Nishioka To me, the purpose of an engineering company

responding to the needs of society is important, there aresupport the resolution of customer operation and mainte-tial, and our record of practical application of technologies.

is to apply its expertise in numerous fields in the evaluation

currently very few companies with a clear vision for thenance issues that are challenging for business owners.

of specialist companies’ technologies and capabilities,

future. The unique value Chiyoda brings is our ability to take

What enriching society looks like is in constant flux and weleverage our strengths and support the realization of a soci-select the most suitable company on a project-by-project

the lead in proposing a vision for what enriching society

are expected to apply technology through engineering thatety that achieves the ‘Energy and Environment in Harmony’basis and collaborate based on a philosophy of flexible

looks like, then utilizing our capabilities as an engineering

meets modern needs. Our strengths are that we have thethat Chiyoda has long advocated. I am currently working on

project execution as ‘One Team’ to meet common objec-

company to provide technology and solutions that carveengineering and technological expertise of engineers withthe development of CCUS*1 technology that reduces CO2

tives. Chiyoda’s ability to unite a wide variety of companies

out a path towards realizing that vision.

a successful track record across many fields and that weemissions and enables the reuse of CO2 as a resource.

have earned the trust of business owners.

CCUS will be a major step forward in the transition from a

towards achieving common goals is a great strength.
Our future activities will concern both energy, as we con-

As Mr. Takimoto mentioned, there is a possibility thatsociety will change significantly in the future. We have all

The global population is expected to increase in future,

As the world seeks carbon neutrality by 2050, we willtraditional energy resource society to one which focuses on

tribute to the energy transition and decarbonization, andwitnessed how items such as refrigerators, washing

while the population in Japan and other major industrialized‘Energy and Environment in Harmony.’ We will focus onconquering challenges such as aging societies, Japan’smachines, mobile telephones, televisions, air conditioners

countries continues to decline. The equipment operation

NET*2 technologies that present even greater challenges,

declining population, and food shortages. We therefore need

and automobiles became more widespread across theand maintenance market is expected to decline in Japansuch as Direct Air Capture (DAC), a technology that effi-

to be a company that leads projects by delivering innovative

generations, dramatically improving lives and creating newdue to the falling domestic population and resource alloca-

ciently extracts CO2 from the atmosphere, and will progress

solutions in the fields in which we currently operate and inlifestyles. When considering what we want to achieve in thetion to decarbonization fields, and efficient operation of

towards their practical application.

new areas. In the Life Science Project Department, we havefuture, we will require new ideas based on the premise thatexisting equipment will be required to overcome the labor

To achieve ‘Energy and Environment in Harmony,’ it iscommenced operations in new fields such as insect-basedsociety is fundamentally changing. Establishing a vision for

shortages. Efficient use of existing equipment is also impor-

important to explore new ways of using energy while reduc-food and high molecule drugs, but a significant amount of

the future in an uncertain world is extremely challenging.

tant given that new energy sources to replace existinging CO2 levels. I hope Chiyoda will be at the forefront ofour current operations remain in EPC projects. We need to

However, Chiyoda’s talented personnel with expertise, skills

sources are still under development. To address these

realizing carbon neutrality and advocating new ways to use

create a system that allows us to continue meeting customer

and experience in many fields place us in a unique position

issues, the O&M-X Solutions Department is leveraging

energy that are radically different from conventional energy

needs for EPC of industrial facilities while maximizing use ofof being able to present a vision of what society should aim

Chiyoda’s engineering and digital technology capabilities

conservation methods, including thermal recycling andDX and AI technology in the labor-efficient implementation offor, and I hope to see us realize this purpose by being lead-built up over many years and, together with the physicalimproving equipment efficiency, along with the processes toprojects, thereby enabling us to focus on new fields whereers for our customers and society.

services of Chiyoda X-ONE Engineering Corporation, will

implement these solutions.

we can meet customer requirements and actively set goals

focus on providing solutions that support the optimization*1 Carbon dioxide Capture, Utilization and Storage

to be met by 2050, then disseminate them to our customersof equipment operation and maintenance. We currently

and society at large. I hope to see Chiyoda resolve social

provide these services in Japan but will expand overseas*2 Negative Emissions Technologies: Technologies that remove CO2 from the atmospherethrough capture, storage and immobilization

issues by uniting companies and working collaboratively toand refine our competitiveness while enlarging our businessachieve common goals. In the medical field, for example, thisbeyond existing frameworks, such as extending the scope

could mean setting the goal of widespread dissemination ofof our EPC projects to provide O&M services. My personal

effective treatments for diseases for which none currently

mission is to propose solutions that maximize synergies
between EPC projects and develop plans forcommercialization.

28

Chiyoda Corporation CHIYODA REPORT 2023

29

Towards Sustainable Growth
Towards Sustainable Growth

Contributing to the Development of Offshore Wind

environment, there will be challenges that business opera-autonomous driving and car sharing are progressing, it isPower in Japan to Realize a Sustainable Society

tors cannot conquer alone, and I want to see Chiyoda add

also necessary to transform how people travel and trans-value by providing tailored solutions to individual situations.

portation logistics, i.e., the demand side. Significant

Katakura I also want to see a sustainable society cen-

We provide services encompassing software operations,changes will also be required in the use of mineral

tered on energy and the environment. In my area of offshore

such as Pre-FEED*3, and will remain alert to future changes

resources and food.

wind power generation, large-scale adoption and costin offshore wind power generation, expanding the scope of

reductions are pending, which has ensuing economic ripple

our business as we contribute to the development of theon both the supply and demand sides. As an engineering

effects. This sector will be essential to making renewableindustry in Japan.

company, our purpose is to provide engineering and tech-energy a core power source as we progress towards*3 Front End Engineering Design

nological expertise to deliver optimal solutions for our cus-carbon neutrality by 2050. Japan’s offshore wind power

tomers that benefit society as a whole, and pursue this in

generation industry is relatively new and it will be essential
to introduce advanced technology, know-how and supply

30

Achieving carbon neutrality requires creative engineering

Kunigo Although most current climate change measures

fields ranging from energy to transportation, logistics,

to reduce CO2 emissions are on the production and supply-

resources and food. Although this is a huge task, I believe

chains from Europe, while adapting to Japan’s unique envi-

employing specialist talent is challenging and many areasside, carbon neutrality cannot be achieved through the

we should work backwards from our goals, connecting ourronmental and regulatory conditions, to achieve the nationalcannot be covered by business operators alone.

supply side alone. Demand-side initiatives that focus on

businesses to maximize internal synergy and understanding

goal of introducing 10GW of offshore wind power genera-

Conversations with customers have identified a strong needuser behavior and consumption habits are equally impor-what we must do as a company to achieve them.

tion by 2030. Chiyoda has extensive experience in overseas

for the resources and knowledge that engineering compa-

tant. Chiyoda has implemented advanced engineering solu-

The scope of ‘Enriching Society through Engineering

projects and we have demonstrated our philosophy of col-nies, such as Chiyoda, provide. Although Chiyoda does nottions for plants and processes both on the energy supply

Value’ will expand in the future and it will benefit all roundta-

laborative project execution, working with companies fromdirectly own assets such as transportation or construction

side and the demand side. As Mr. Kodani mentioned,ble discussion participants to take a moment to reflect on

Europe and around the world. As such, our involvement will

equipment, we use our engineering expertise and project

I want to see Chiyoda be proactive as we investigate alter-

Chiyoda’s purpose and vision for society.

facilitate the effective introduction of European technology

management experience to enable partner companies who

native energy supply solutions while also incorporating

into Japan and, looking ahead, expanding the scope of

do to effectively utilize their assets, and we provide flexible

demand-side perspectives. This approach can also apply

what can be handled domestically would be ideal fromresources without the restrictions of asset ownership. As

to non-energy fields. In the automobile industry, for exam-a national policy perspective. However, the reality is that

we adapt to the rapid changes in society and our businessple, while supply-side initiatives such as electrification,

Chiyoda Corporation CHIYODA REPORT 2023

31

Towards Sustainable Growth

Human Resource Management Policy (Materiality)

A Human Resource System Supporting Human Resource Development

As Chiyoda’s most valuable asset, expanding and advancing human resources is a key driving force for growth and we are

In fiscal 2021, Chiyoda revised its human resource system to support human resource development, more favorably evaluat-

advancing human resource management in the four areas of low carbon and carbon recycling, hydrogen, energy manage-

ing and rewarding employees who demonstrate business execution abilities and organizational management capabilities,

ment and life science as part of our materiality in the transformation of our business portfolio.

and supporting the development of both traits, enabling employees to take on positions with added responsibility within the

Towards Sustainable Growth

Human Resource Management

Company, regardless of age.
Human Resource Management Materiality

Human resource
development
policyInternal
environment
improvement
policyExpanding and enhancing
human resources

The Chiyoda Group proactively contributes to resolving society’s issues by leveraging its advanced
engineering capabilities and expertise through the execution of business in our four new businessareas, and develops human resources to further refine their problem-solving capabilities.

Digital human resource
development

We are strengthening our business foundations through digital transformation, changing employee
mindsets and engineering digital transformation in project execution, corporate activities, society andindustry, as we accelerate the development of new businesses.

Health management and
Employees’ mental and physical wellbeing directly influences business performance and we procreation of an organizational
mote an organizational culture that embraces and leverages the diversity and individuality of ourculture in which diverse
human resources.
people can play an active role

Advancing Human Resources

System for Enhancing Business
Execution Abilities

Further Enhancing Organizational
Management Capabilities

We are further developing the expertise and unique strengthsof our human resources and their ability to independently
identify and resolve social issues (‘set and complete tasks.’)

To further enhance the organizational management
capabilities (the ability to maintain and develop organizations and human resources) of leaders, Chiyoda putsorganizational management into practice at an early stage.

Fellow System
In fiscal 2022, we established a system for employees who
demonstrate outstanding expertise and appointed three
fellows, one from existing business fields and one fromeach of the new business fields of hydrogen and life
science. Fellows are expected to be employee role models
and leaders in terms of Chiyoda’s business strategy.

Enhancing Our Ability to Set and Complete Tasks

In April 2022, Chiyoda created a Human Resources

Executive Advisory Committee

Management Committee, operating under an Executive

Reporting

Advisory Committee, comprising all division directors andchaired by the Chief Human Resources Officer (CHRO), who isIntegrated Strategy
Committee

Reporting / Sharing /Discussion

Human Resources
Development Committee

Chiyoda commenced action learning-based training infiscal 2021, principally intended for middle management.
There were fifty participants in fiscal 2022 and further
expansion of this training is planned from fiscal 2023.

also currently Director of the HR & DX Division. The committee
discusses topics such as human resource allocation, organizational functions and project execution systems to meet busi-

Human Resources
Management Working Group

Cooperation

Human Resources
Development Working Groupness plan goals and realize business portfolio transformation ineach business domain, and promotes cross-division human resource allocation, external recruitment and the formulation ofhuman resource development strategies.
To further strengthen the connection between business and human resource strategies, and following discussions regarding
human resource allocation and recruitment strategies in a Human Resources Management Working Group (operating under

Career Dialogue with Management
Chiyoda convenes career aspiration discussions between
employees and managers at least once per year, enabling
management to better understand employee career
objectives and employees to evaluate their own careers
and the roles expected of them, then reassess targets for
personal growth.

the Integrated Strategy Committee), the Human Resources Management Committee was renamed the Human Resources

Goal Setting Leading to Growth

Development Committee in April 2023. The CHRO continues to serve as chair and Human Resources Officers (HROs) from

Chiyoda also convenes annual Companywide discussions to ensure our goals will lead to growth from theperspective of HROs and fellow managers (diagonal) in
addition to line managers (vertical).

each of the four job categories are central to further accelerating the formulation of human resource development strategies.

Appointing the Right People to the Right Positions
Chiyoda encourages the development of younger
employees by diversifying their knowledge and experiencethrough job rotation, apportioning responsibilities
commensurate with capabilities regardless of age. This has
resulted in the emergence of young leaders achieving
divisional director and company president positions earlyin their careers. HROs are key to this initiative, as discussions are held across operational and functional divisions
prior to decisions being made.

A Results- and Merit-based System that Transcends Age
Chiyoda has established a human resource system underwhich talent is promoted to suitable positions regardless ofage, with appropriate support, to foster the emergence of
new leaders.

 valuating and Monitoring Organizational
E
Management Capabilities
Chiyoda conducts evaluations focused on organizational
reform and human resource development (organizational
management capability evaluations) for section leaders andabove, encouraging these employees to continually enhancetheir organizational management capabilities. We also
provide opportunities for colleagues and team members
to offer input regarding 360o observation, enabling selfreflection and promoting transparency as an organization.

Human Resource Development Principles
Chiyoda has defined the following Human Resource Development Goals to expand and enhance human resources and is
implementing human resource development measures to reach these goals.

Basic Attitude

Human
Resource
Development
Goals

32

Professionalism as standard• Awareness & improvement as
a professional• Humbleness & communication skills• Independence & determination to takeon challenges

Chiyoda Corporation CHIYODA REPORT 2023

MessageBusiness Execution Abilities

Organizational Management
Capabilities

Accelerating growth and enhancing our‘Business Execution Abilities’

Early appointment and development of
human resources with ‘Organizational
Management Capabilities’• Ability to set & complete tasks• Customer oriented with a bird’s-eye view
• Ability to respond to changes• Ability to contribute to organization• Ability to mix digital technologies withvalue creation• Expertise• Capability to unite a team• Capability to embrace & make the mostof diversity• Capability to improve & develop humanresources/organization

Building a Foundation for Human Resource Development
I joined Chiyoda as a mid-career hire in fiscal 2021 and am now involved in employee evaluationand promotion in the HR Department.
Chiyoda’s greatest asset is its human resources and we have transformed our human resource
system, supporting the growth of employees as they assume new challenges. Having been personallyinvolved in the transformation, I can attest to Chiyoda top management’s commitment to these reforms.
I look forward to participating in our company’s growth as we combine the new human resource
system and human resource development measures with our established ‘flat’ organizational
structure, and our culture of assigning employees to positions of responsibility regardless of age.

Rika TerajimaGroup Leader,
Personnel Evaluation Group,
Human Resources Planning Section,
Human Resources Department

33

Towards Sustainable Growth

Human Resource Development Initiatives Led by the CHRO and HROs

Introducing Professionals from Each Job Category

Working under the CHRO, HROs lead the

The following articles are from employees who have charted their own career paths, covering a wide range of experience, and

HRO Mission
1. Visualizing current position of human resource value

realization of Chiyoda’s human resource
vision, while leveraging the strength of our

Career development discussions

Job category decisions

who continue to play an active role in the Chiyoda Group.

HRO interviews

2. Identifying human resource visions
3. Propelling processes to realize visions

human resources cultivated over many years.
We will continue cooperating with the
Human Resources Development Committee(0) KNOW• Dialogues• Understandcareer change
aspirations

to formulate transfer strategies that optimize
human resource development and, throughregular discussions between HROs and(1) PLAN• Plan and finetune careerchanges andassignments

employees (HRO interviews), will accelerate
human resource development by aligning indi-(2) TRAIN• Execute careerchanges andassignments• Follow up withpeople whochangedcareers(3) EVALUATE• Monitoring• Dialogue withmanagers(4) NEXT STEPS• Assessment
and promotion• Advancement*H ROs will examine new measures with the HR Division based on opinions of employees and humanresource-related issues identified through dialogue

vidual employee aims and personal goals with
the Company’s overall business objectives.

CHRO

Mr. Kumagai joined Chiyoda in 1985 and worked on overseas project instrumentation design and installationin the Instrumentation & Control Systems Department. In 2010, he was appointed the General Manager (GM)of the Construction Estimation Department and the Offshore Upstream Business Operation Department, prior
to being relocated to the UK as Executive Director of the subsidiary Xodus Group Limited. In 2019, he wasappointed Assistant to the Division Director of the DX Division and, after serving as Vice President of Energy
Project Operations, was appointed Chief Digital Officer (CDO) and Division Director of the DX Division in April
2021. In April 2022, he was appointed CHRO, CDO and Division Director of the HR & DX Division.

Ex: Engineering
Professional

Exemplary knowledge
in specialized
technology domains

Px: ProjectManagement

Central figure in projectorders and execution

Bx: Business
Incubation

Taking on challenge of
new businesses andinnovations

Cx: Corporate
Professional

Supporting organizations
and projects, in charge ofsteadily executing
corporate functions

HRO-Ex

HRO-PxEngineering

Project Management

I love engineering and am delighted to be able to work in piping
engineering in particular. Combining equipment to develop plants
and solve technical problems is extremely rewarding. I haverecently been assigned additional discretionary authority and thishas made my work even more fulfilling. I also recently supplemented my Mechanical Professional Engineer (PE)qualification with a Professional MechanicalEngineer qualification through self-study,
which has enabled me to gain further
experience in process engineering.
I hope to continue my development by acquiring a wide
range of skills, including
beyond my own field ofengineering, to expand
my capabilities as aengineer.

Daisei Tanaka

Masaki Kumagai

Four Job
Categories

HRO-Bx

Towards Sustainable Growth

Human Resource Management

HRO-Cx

Piping Engineering Department

Business Incubation

Having previously worked as a plot plan and piping engineer onlarge-scale overseas energy projects, I am currently responsible
for FEED and cost estimation on a wide scope of pharmaceutical facilities in Japan. The fast pace and unique challenges ofpharmaceutical projects have enabled me to gain a variety
of experience, which is extremely rewarding. After
gaining comprehensive experience in my­current position, I wish to progress to
become an Engineering Manager andProject Manager and I will continue
working diligently to advance mycareer for my wife and threedaughters.

Professionals
from theFour Job
Categories

I am currently seconded
to Pharmira Co., Ltd. andmy duties include formulating business plans, compilingfinancial statements and otherMakie
accounting activities, and manShinoto
aging meetings such as the Board
Seconded toof Directors’ meetings and the General
Pharmira Co., Ltd.
Meeting of Shareholders. I worked in the
Finance Department prior to my secondment
and progressing from working purely with numbers toexperiencing how that information directly relates to business was
extremely enlightening. I am the sole person responsible forfinance at Pharmira Co., Ltd., and creating a new system fromscratch, making proposals and designing my own way of working
is challenging but rewarding. I look forward to expanding mycapabilities and leading business execution in the future.

RyuichiWatanabeLife Science Project Department

Corporate

The Chiyoda Group istransforming its businessportfolio and, having been
engaged in functional engineering for industrial plants
since joining Chiyoda approxiJunya Saka
mately nine years ago, after disAccounting
cussing career aspirations with myDepartment
HRO, I asked to take on a new challenge
in the Finance Department, where I currently
work in accounting management. I am excited by
the challenge of working in a completely different discipline and I am currently expanding my knowledge base while
studying for additional qualifications. It is reassuring to know that
I have the support of Chiyoda and can turn to my manager andcolleagues at any time for advice. My initial goal is to refine myfinance and accounting skills, whereupon I will be able to offer
my support in resolving more complex challenges in fields suchas new business and business investment.

Message

34

Ayako Shoda

Shimpei Saito

Takuo Yasunishi

Hirotami Kubo

Ms. Shoda joined Chiyoda in 1997. She holds
a master’s degree in chemical engineering andProfessional Engineer (PE - Chemical) certifications in Japan and the USA. She has years ofexperience in oil refining process design,
including over five years as a section leader. In
September 2020, she was appointed HRO-Ex
and has also managed the Health Management & Diversity Promotion Office in the HRD
Department since April 2022.

Mr. Saito worked in the Civil Engineering
Department after he joined Chiyoda in 1995,
before being responsible for overseas projects
following his relocation to the Project Divisionin 2000. Having worked on overseas projects
for over 12 years, his extensive experience
includes work at a copper smelting plant in
Myanmar, a methanol plant in Saudi Arabia
and LNG plants in Qatar and Australia. He wasappointed GM of the SQEI Department in 2020and HRO-Px in April 2022.

Mr. Yasunishi joined Chiyoda in 1994, working
on process equipment and licensing operations for environmental equipment in the Environmental Technology Department. He was
relocated to the Domestic Project Department
in 2004, being responsible for petrochemicals
in domestic projects and gaining further experience while on customer assignments for two
years. He was appointed GM of the Technology Development Department in 2019 and
HRO-Bx in September 2020. He has served as
GM of the Business Innovation Department
since April 2022.

Having joined Chiyoda in 1992, Hirotami Kubo
was assigned to the Sales Department, where
he managed sales in industries such as pharmaceuticals and chemicals. He was also
appointed as administration manager for theconstruction of a large LNG plant in Qatar anda polysilicon plant in Malaysia during this time.
After eighteen years in the Sales Department,
Mr. Kubo worked in the Overseas Project Division in the Company’s headquarters and onsites overseas prior to being appointed GM of
the Secretarial Office in 2018 and GM of the
Human Resources Development and HRO-Cx
in April 2023.

Chiyoda Corporation CHIYODA REPORT 2023

Aligning Business Strategy with Employee Career Aspirations
Large, complex industrial projects require the mobilization of large numbers of employees andassigning personnel in consideration of optimum human resource development becomes a­challenge due to capacity restraints. Accumulating the relevant experience is essential for humanresource development, however, and we will harvest the information gained from HRO/employee
interviews as the basis for our continued efforts to align assignments that optimize personnel
development with the Group’s overall business strategy, as we expand and enhance ourhuman resources.

Mayuko MoriGroup Leader,
Career Development Group, Human
Resources Development Section,
Human Resources Department

35

Towards Sustainable Growth

D&I Seminar

Mid-career Hires

In May 2023, over four hundred employees participated in a

The Chiyoda Group proactively recruits mid-career person-

The next generation DIGGING LAB (DIGLAB) is a voluntary employee project, launched in 2020, that transcends business divi-workshop, with the aim of furthering efforts to create annel, with the aim of securing diverse talent with the requisitesion boundaries and promotes organizational revitalization by initiating and implementing organizational revitalization solutions

environment that recognizes diversity, and allows people toknowledge and skills. Mid-career employees hired in fiscal

in areas such as new business development, work-life balance, human resources, organizational development and project

thrive as their true selves.

2020 to 2022 was approximately 3.8 times larger than the

Voluntary Development Initiatives

management. In April 2022, DIGLAB was upgraded beyond a voluntary activity framework to an official company activity

corresponding figure for fiscal 2017 to 2019 and mid-career

under the ‘Value Innovation Department.’

hires occupy 31.7% of management positions. We will con-

Towards Sustainable Growth

Human Resource Managementtinue to hire personnel based on merit.
HR Award
An award that recognizes
outstanding initiatives promoting
the growth of companies andindividuals in areas related topeople and organizations.

Psychological Safety
Award

Career OwnershipManagement AwardAn award celebrating teams
and organizations working toenhance psychological safety.

An award recognizing companies that promote careerownership management.

TOPICSSCEJ Award for Outstanding Women’s Activity
In line with our corporate philosophy of ‘Energy and Environment in Harmony,’ Masayo
Shinohara’s achievements include contributing to the Environment Section while being

Messageconsistently productive as an engineer. As a member of the Gender Equality Committeeof the Society of Chemical Engineers, Japan (SCEJ) she is also dedicated to promoting

Organizational Support for DIGLAB

the advancement of women, including through the planning of events such as the

DIGLAB has energized the Chiyoda Group by proposing and implementing solutions that surpass individual organizational responsibilities, from creating new businesses to recommending public relations andhuman resource initiatives. Examples include the formulation of Chiyoda’s new purpose, in-house radio,

talization proposals, enabling us to reap the benefits of the results and apply the lessons learned to ourcore business.

demands relating to plant construction. In addition to leading environmental management operations, she is also

General Manager,
Value Innovation Department

actively involved in the training of environmental managers and enhancing Chiyoda environment-related proposals.

Health and Productivity Management Initiatives
Chiyoda released its ‘Declaration of Health and Productivity Management’ in April 2020, to promote a working environment

The Chiyoda Group responds to change, creates social value and fulfills its purpose of ‘Enriching Society through Engineering Value’ by
respecting diversity in terms of gender, nationality, race, age, religion, sexual orientation, gender identity, disability, working style, role, etc.
The Group promotes a working environment that unites diverse opinions, wisdom, experience, abilities and technological capabilities andin which all individuals are respected and can demonstrate their ability.
Enacted October 1, 2023

Women

Non-Japanese Employees

To increase the percentage of women in management posi-

Chiyoda employs a significant number of non-Japanesetions as an indicator, the Chiyoda Group supports the transi-

personnel on large-scale overseas industrial projects intion from women in general positions (‘dedicated positions’) tofields such as LNG. The ratio of non-Japanese employees

career-track roles and is implementing the following initiatives:in management positions was 3.1% in fiscal 2022 and we·C reation of a work-life balance support handbook sum-continue our strategy of promoting employees based on

marizing work regulations, childcare and nursing caremerit.

riage, pregnancy, childbirth, childcare and nursing care
· Introduction of systems to subsidize childcare and day
care services for sick children

36Work Style Reform
As a way of working post-covid, we continue to facilitate
work style reforms, adopting a hybrid system that optimizesorganizational performance by combining the efficiency ofworking from home with the creativity inspired by uniting

More Experienced Employees

in the office. Childcare leave taken by male employees

Chiyoda implemented career training in fiscal 2022, encour-

increased significantly from 44.9% in fiscal 2021 to 75%

aging employees to develop a mindset responsive toin fiscal 2022.

changes in their environment.
Chiyoda Corporation CHIYODA REPORT 2023

Section Leader, Environment Section
Engineering Safety, Fireand Environment Department

Environment Department, newly established in response to increasing environmental

D&I Policy

supporting female employees in balancing work with mar-

Women’s Activity in fiscal 2021.

Akihiro Iwasa

Diversity and Inclusion (D&I) Initiatives­support rules and how to apply for specific programs,

Masayo Shinohara

She currently leads the Environment Section of the Engineering Safety, Fire andan insect-based food development initiative and the launch of an alumni group.
Providing organizational support for DIGLAB is key to reviewing and implementing organizational revi-

Japan Women Engineers Forum, and received an SCEJ Award for Outstandingthat encourages employee mental and physical wellbeing and have also established a ‘Health Management Promotion
Council’, chaired by the Chief Wellness Officer (CWO). In June 2023, the council’s Chairman, Vice Chairman and occupational
physician (a council member) held roundtable discussions on the theme of ‘The goal of our Health Management’ to review theefforts made in fiscal 2022, discuss the thoughts behind the ‘Health Management Strategy Map’ newly announced as a compass for health management, and discuss the direction to take.

Masakazu Sakakida

Masaki Kumagai

Aya Kayano

Representative Director
Chairman of the Board President,
CEO and CWO, Health Management
Promotion Council Chair

Senior Vice President, CHRO & CDO
Director of HR & DX Division
Vice Chair of Health Management
Promotion Council

Industrial Doctor,
Exclusive Industrial Doctor,
Health Management Promotion
Council Member

As CWO, I have always prioritized employee mental
and physical well-being and increasing healthawareness Companywide as a prerequisite toincreasing workplace productivity, enhancing
employee fulfillment and improving corporate value.
Each employee is highly conscious of their healthand our business will further develop by realizing theemployee’s well-being and productive workplacethrough health management, and our corporate
value will increase through proactive disclosure of
information. This is the corporate vision that I am
aiming for. The Company will support the executionof health management initiatives to create a workplace where all employees are healthy both physically and mentally.

It is essential that we clearly communicate the twin
objectives of raising health awareness among all
employees (health promotion activities) while
protecting their health (occupational health activities) in a balanced fashion. As Chief Human
Resources Officer (CHRO), I will continue to implement effective human resource initiatives according
to our Health Management Strategy Map, and, fromthe perspective of ‘Human Capital Disclosure,’ wewill diligently disclose initiatives and figures internallyand externally related to health management.
Human resources are Chiyoda’s most valuable asset
and we will continue cultivating a system whereby
employees can enhance their awareness of company human resource initiatives, such as our priority
commitment to reducing long working hours.

		

We should utilize data from annual employee healthcheckups and health awareness surveys to initiateeven more effective employee health enhancing
programs, implemented through PDCA cycles. It isessential that we provide conscientious mental andphysical care through our occupational healthactivities, including conducting medical examinations and checking fatigue levels, then proactively
communicate results that merit further attention. We
also conduct medical surveys overseas throughon-location visits and organize employee interviews
to proactively identify issues and take appropriate
action. I will continue striving to ensure that all
employees can travel and work with peace of mind.

Reference is made to the following website as a guide to Chiyoda’s future employee health management vision.

https://www.chiyodacorp.com/en/csr/society/employee/approach.html

37

Towards Sustainable Growth

The Chiyoda Group is accelerating digital transformation (DX) in three areas: Project DX, Corporate DX and Human
Resources DX.
Project DX encompasses the implementation of a Digital EPC Platform for the execution (design, material procurement, construction planning, and cost and schedule management) of complex FEED and EPC projects to minimizerisks and reduce project lead times, while sharing information within the ecosystem surrounding each project.
Corporate DX involves linking our core accounting activities to projects to accelerate the dissemination of information to management and enable detailed auditing, while simplifying structures and limiting maintenance costs.
We also coordinate resource management with order management to facilitate rapid examination of business plan
scenarios and implement talent management that enables visualization of human resource capabilities and strategic allocation.
Human Resources DX is essential to enhancing our DX design capabilities by changing employee mindsets as
an essential element to advancing DX.

Human Resources DX
We are progressing Human Resources DX as a foundation for Companywide DX by enhancing employee digital literacy andrelated skills. Centered on the Digital EPC Platform, examples of our progress are shown below.

Anna ImaiLife Science
Project
Department

Enhancing Business Execution and Management Capabilities through Corporate DX• Linking Digital EPC Platform andmanagement accounting information to support rapid earnings
forecasting and risk management,
and coefficient management linked
to actual labor hours• Strategic human resource development and allocation• Visualization of human resourcesand organizational capabilities• Simple core system structure that
reduces operating costs

Contract management• Drafting business plan scenarios
across business divisions

Project DX

Digital EPC Platform• Execution and management of over 500 large and small-scale projects (design,
equipment and material procurement, construction planning, and cost andschedule management) in a digital space

Adoption of sophisticated project progress management

improving project progress management, which is key toexpanding our EPC project execution capabilities.
Parties involved work using the platform from project commencement to completion and information is organized and inte-

Project commencement­information sharing across the entire EPC supply chain while

Drawing a straight line from project commencement tocompletion, then reviewing required processes in detailthrough a flexible approach connecting engineeringand EPC supply chain information with construction
execution management, optimizing and streamlining
the process of completing the project as planned

grated as data. This enables stress-free use of information that

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urr

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Timely sharing of EPC supply
chain information while
procurement of equipment andmaterials proceeds, optimizing
and streamlining the process of
converging projects around theplanned value.

Project completion

digital technology to advance concurrent engineering andoptimizes and streamlines business processes, such as visualizing the current status of the project and sharing this information
with related parties. We have also commenced activities to dramatically improve the efficiency, sophistication and automationof operations by accumulating data on the same platform andlinking it with applications that utilize digital and AI technology.

Business activities

Business activities

An EPC project engineer on domestic
pharmaceutical plant projects

Planning and managing project costs and schedules
at the proposal and execution stages

Current issues

Current issues

Salient design information is collated as process
flows, P&IDs, plot plans and equipment lists. Design
information is progressed, reviewed and revised toensure accuracy and consistency, generating
significant workload.

KenNameshida
Project
Management
Department

Optimizing and streamlining
the process of finalizing thedesign to achieve theplanned value, while
engineering domains
simultaneously influenceeach other

Digital EPC Platform• Construction of platforms for each project• Personnel inside and outside the Company can accessthe status of actions using built-in workflows, andobtain information as data in order to execute tasks• Accumulation of information and processes fromproject commencement to completion as data andrealization of data-based task automation

Ai Honma
Procurement
Department

We manage a significant amount of data related todesign, construction and procurement, in addition
to referring to data from previous projects, andusing Excel to collate data across different sources
is inefficient.

Expected benefits of the Digital EPC Platform

Expected benefits of the Digital EPC Platform

Design documentation is updated based on revised information from within Chiyoda and from external parties such as
vendors and customers, and consistency of design information is key. Developing the design in a data-centric manner
through the platform enables work execution from the latest
revision, even as initial estimated values are updated to final
values, leading to improved design quality, efficiency andcustomer satisfaction.

Being conscious of the need to allocate more time to evaluation and determination rather than simple data tabulation,
the platform enables the efficient compilation of live data
across many sources and enhances our ability to monitor
project progress in real time, identify issues and take prompt
remedial action. I look forward to using the platform further
to enhance Chiyoda’s execution capabilities, competitiveness and profitability.

Business activities

Business activities

Designing power generation, transmission anddistribution systems as a power source for plants

Designing elements such as buildings, pipe racks
and concrete foundations within plants

Current issues

Current issues

During design, the exchange of information withother departments and vendors takes place on a
personal level, meaning considerable time is spentensuring the validity and consistency of data.
Expected benefits of the Digital EPC Platform

Yuka
Nishimura
Civil Engineering
Department

Organically connecting data across the entire design frees
us from the requirement to constantly ensure data’s validity
and consistency, allowing engineers to concentrate on highvalue-added design optimization activities and proposing
alternative design proposals to customers, positively impacting motivation and reinvigorating further value creation.

Foundation and pipe rack design are the mostdownstream end of concurrent plant design.
Managing changes to design conditions as thedesign progresses is key, but poses challenges.
Expected benefits of the Digital EPC Platform
Transmitting all information through the same platform enables
us to manage upstream design changes and minimize theirimpacts at an early stage, while delivering competitive schedules and resource planning. Upstream design personnel canalso visualize the status of our work, enabling them to more
efficiently gauge the scale of impacts. More efficient and reliable change management enables us to propose more effective solutions for our customers with even greater added value.

Digital EPC Platform Concept

We are currently developing a Digital EPC Platform that uses

Chiyoda Corporation CHIYODA REPORT 2023

Electrical
System &Smart Grid
Engineering
Department• Visualization of progress and completion forecasts for each project and linking
with management accounting and resource management information

Improving EPC Project Execution Capabilities with theDigital EPC Platform

38

YasushiFukuzawa

chainsEPC Project Execution

Contract management• Contract lifecycle management

supply• Order receipt planning andforecasting/reviews relating toresource utilization• Visualization of human resource
development paths

in EPC• Sharing customer and project
information

Human Resources DX

Human resources

Talent management

sharing

Order receipt planning, businessplanning and resource planning

Resource management

Corporate DX

Core accounting

Global business management

Business process DX foundationn of info
rmation

Link between
management andproject execution

Enhancing precision, depth and sophistication of business planning and forecasting

Evolutio

EffectTowards Sustainable Growth

Accelerating Companywide Digital Transformation (DX)Business activities

Business activities

Procuring equipment and materials and managing
transportation and delivery according to schedules

Construction planning, cost estimation, ordering andexecution management

Current issues

Current issues

Creating and/or analyzing procurement reports
requires the time-consuming process of collating
information using inefficient methods, such as
searching through previous organization folders, andprocessing it every time, because data is stored inseparate locations using different methodologies.

Revising schedules when construction is not proceeding as planned requires issuing design and procurement information, collating large quantities of
information covering elements such as work volume,
material orders and on-site inventory, validity confirmation and schedule revisions and adjustments by
experienced personnel.

Expected benefits of the Digital EPC Platform
A supply chain platform releases us from time-consumingtasks, such as collecting order history and cost data,
enabling us to focus on higher value-added duties. This
standardization reduces workload and improves the qualityof deliverables.

YusukeTemmaConstruction
Administration &Subcontracting
Department

Expected benefits of the Digital EPC Platform
Being able to collate all required information on one platform
greatly increases efficiency using the schedule simulator,
which is currently under development, enabling us to focus
on coordination with partners and construction contractors,
improving our onsite construction execution capabilities.

39

Business Strategy

Business Domains / Business Models
The Chiyoda Group is addressing the increasingly complex challenges
faced by our customers and society in general, while

creating new value in engineering
through DX and initiatives in the four business domains of
Low Carbon and Carbon Recycling, Hydrogen,Business
Strategy

Energy Management, and Life Science.

Low Carbon andCarbon Recycling

Life Science
Business

Digital Transformation (DX)DX Business Promotion & Innovation

Stable supply ofclean energy,
CO2 reduction andutilization

High value life sciencesolution provider

EnergyManagement
Business

Hydrogen
Business

Realization ofa hydrogen-based society

Promoting renewable energy andpower storage,
Optimizing energy utilization

This section introduces the Chiyoda Group’s business models andstrategies to create sustainable value.

Project Lifecycle Engineering
Chiyoda’s project lifecycle engineering is core to our business model during all project stages, from planning to front end
engineering design (FEED), EPC, commissioning, handover, and Operations and Maintenance (O&M).

CONTENTS 

EPC

41 Business Domains / Business Models
Procurement

42 Low Carbon and Carbon Recycling Initiatives
44 Hydrogen Business

Construction

Engineering

Commissioning

46 Energy Management Business48 Life Science Business
50 O&M-X Solutions Business

FEED*

FEED / Basicengineering

Project
Lifecycle
Engineering

R&D support

O&M
Revamping /Expansion

De-commissioning

Feasibility study
Planning

O&M

Engineering data
warehouse* FEED: Basic plant engineering including planning andfeasibility studies

40

Chiyoda Corporation CHIYODA REPORT 2023

41

Business Strategy

Business Strategy

Low Carbon andCarbon Recycling
Initiatives

Goals and Strategies
Further participation in Advanced CCS Support Project and International Oil Company (IOC) and National Oil Company(NOC) projects from the initial stages to receipt of orders for onshore facilities, partnership with companies possessing viable

Takuo Yasunishitechnologies and channeling the Group’s refrigeration technologies in the field of liquefied CO2 as a means of differentiation

General Manager,
Business Innovation Department,
Frontier Business Division

The award of multiple commercial CCU facility EPC projects in Japan and overseas by 2030 by contributing to client demonDevelop innovative technologies and contribute to external development through Chiyoda’s implementation capabilities to

Top Message

establish a licensing business and win further EPC projects

Low carbon and carbon recycling is one of the Chiyoda
Group’s four new business domains. The rapidly changing
energy supply market is expected to expand significantly inthe short to medium term, and is an area where the Groupcan combine its engineering expertise and technologicalprowess to maximize business opportunities as society
endeavors to realize a low carbon future.

VisionCommitment to LNG as a clean and reliable
source of energy during the accelerating
global energy transition, and further contributing to the social implementation ofcarbon recycling technology to realize adecarbonized society

stration projects and partnering with companies possessing differentiated technologies

TOPICS
Methanation
The equipment in the test plant contract awarded by INPEX Corporation will have one of the world’s largest e-methane production capacities (400Nm3 CO2/h). Through this project, the Group will contribute to the early social implementation of methanation technology, a key component for decarbonization.

CCUS* Please refer to Stable Supply of Clean Energy on page 12 for LNG.

Fiscal 2022 Review and Initiatives for Fiscal 2023
In fiscal 2022, we collaborated with companies from Japane-fuel Production
In addition, we have received orders for EPC work on

and overseas to conduct several studies aiming for themethanation equipment for INPEX Corporation and EPC

application of decarbonization technologies such as SAF/e-work on synthetic fuel demonstration facilities for ENEOS

Fuel and CCU/CCS.

Corporation, and orders for several more FEED and EPC

Specifically, we have established a cooperative frame-

projects are planned for fiscal 2023.

work for e-fuel production with Pace CCS of the UK, which

The Group has collaborated with Mitsubishi Corporation and BLCP Power, an independent power producer in Thailand, on projects to technically study and economically evaluate carbon dioxide capture, utilization and storage (CCUS), and othertechnologies to reduce CO2 emissions. Chiyoda also entered into a joint study agreement with PT Pertamina, a state-owned oil company in Indonesia, to cooperate indecarbonization projects to develop CO2 reforming of methane and CCU technology
in Pertamina’s upstream field, producing value-added chemical products.

Japan, which has lagged behind the rest of the world in

has a proven track record worldwide in CCS systemits efforts to become carbon neutral, has moved from a dis-design, and INERATEC of Germany, which has innovative

cussion phase to a phase of establishing clear goals andPower-to-X technology. In terms of technological develop-

implementing plans, as evidenced by the government’s

ment, we have also begun the development of an innova-

March 2023 release of its CCS Long-term Roadmap. In

tive CO2 separation and capture system, which has beenfiscal 2023, we will continue to accelerate our efforts in theselected by the GI Fund.

decarbonization sector.

Through the order received from ENOS Corporation for the construction of a synthetic fueldemonstration facility and the memorandum of understanding for strategic collaboration
signed with INERATEC, Chiyoda will continue contributing to the early social implementation of synthetic fuel production technology, key to realizing a carbon neutral society.

Memorandum of understanding signingceremony with PT Pertamina at the
AZEC public-private investment forum(Left to right) Yasutoshi Nishimura(Minister of Economy, Trade andIndustry), Setsuo Iuchi (Senior Vice
President of Chiyoda), and Nicke
Widyawati (President of PT Pertamina)

Development of CO2 Separation and Recovery Equipment
Chiyoda Corporation, JERA Co., Inc. and the Research Institute of Innovative Technology
for the Earth (RITE) have commenced a technology development and demonstration
Industrial-scale containerized power-toliquid plant module by INERATEC
project for large-scale separation and recovery of CO2 from gas-fired power generation
exhaust gas, under a NEDO Green Innovation Fund program. The project combines
Chiyoda’s experience of process development, scaling up, application of technology and LNG plant construction with
JERA’s gas fired power plant operation and maintenance expertise and RITE’s CO2 separation and recovery technology,
and will contribute to decarbonization while utilizing existing infrastructure to realize low-carbon utilization of natural gas.

Business Environment
Opportunities	Accelerating the application of low carbon
and carbon recycling technology in responseto the accelerating global transition to a decarbonized society	Launch of the Japan Organization for Metals andEnergy Security (JOGMEC) Advanced CCS
Support Project in Japan and institutionalization ofother effective and concrete support measures

Strengths
	The Group’s engineering expertise and EPC
project execution experience harnessed in the
successful delivery of industrial facilities in over
60 countries	State-of-the-art technology development
capability and the ability to evaluate and integrate diverse technologies

Risks

Message

Contributing to the Technological and Business Development of
Carbon Recycling Technology	Delayed policy development and policy/
environmental changes

We are engaged in technology and business development related to CCUS, which is to capture,	Emergence of discontinuous, disruptive
technologies

order to achieve carbon neutrality worldwide.

utilize, and store emitted CO2, and NET, which is to capture and immobilize atmospheric CO2, in
We will contribute to the early realization of carbon neutrality and the expansion of our businessdomain by developing new technologies and optimizing existing and new technologies based on
our accumulated knowledge and experience in EPC while promoting business development with42

Chiyoda Corporation CHIYODA REPORT 2023

a wide range of possibilities, including beyond EPC.

Ryutaro Hotta
Business Innovation Department

43

Business Strategy

Business Strategy

Hydrogen
Business

Goals and Strategies
Realize project commercialization within this decade and establish a leading market position in the expectation that hydrogen market expansion will accelerate in the following decade

Yasuhiro Inoue

Continue development of the hydrogen new business domain, establish a sustainable revenue model by 2025 and grow

General Manager,
Hydrogen Business Department,
Frontier Business Division­revenue by 2030 through licensing and catalyst sales relating to our proprietary SPERA Hydrogen technology while also
Proactively continue initiatives to realize hydrogen supply chains in Singapore and Europe

Top Message

Position a hydrogen supply chain in Japan and create specific projects through discussions and studies with potential

Hydrogen is one of Chiyoda’s four new business domains
and is expected to be key to achieving net-zero goals being
established by countries and organizations worldwide. We
will continue collaborating with all proponents in contributing
to a decarbonized hydrogen society through the applicationof SPERA Hydrogen, the Group’s proprietary LOHC-MCH
technology. Using methylcyclohexane (MCH) as the liquidorganic hydrogen carrier (LOHC), it enables hydrogen to besafely stored in large quantities and transported over long
distances under ambient conditions.

VisionContribute to the early realization of ahydrogen society, centered on the Chiyoda
Group’s unique SPERA Hydrogen™ technology, while also leveraging the benefitsof multiple hydrogen carriers­creating EPC opportunities­customers and partners
Maximize the advantages of SPERA Hydrogen, including ease of handling, cost, early realization through utilization of­existing assets and integration with peripheral facilities, while continuing research and development to reduce costs andincrease efficiency
Create new business opportunities, from hydrogen supply chain development to utilization, by capturing the synergy thatexists between internal Chiyoda departments

TOPICS utting-edge Technology for a Hydrogen Society:C
A Hydrogen Highway Concept in Europe
As the global drive towards decarbonization accelerates around the world,hydrogen is becoming a key clean and reliable source of energy, especiallyin Europe, where systems for hydrogen adoption and associated projects,
such as the hydrogen highway concept, are actively being developed. The
project, currently in the feasibility phase, is run by an international consor-

Fiscal 2022 Review and Initiatives for Fiscal 2023
·H
 ydrogen Supply Chain Development in Singapore:

between Scotland and Rotterdam in the Netherlands

After signing a memorandum of understanding in Octoberusing our LOHC-MCH technology. Chiyoda signed a stra-

2021 to explore the feasibility of a hydrogen supply chain

tegic commercial cooperation agreement with Axens ofin Singapore using LOHC-MCH technology, Chiyoda

France, which owns the technology for the hydrogen

Corporation, Semcorp Industries and Mitsubishi

export side of the study, in November 2022.

Corporation agreed to proceed with Pre-FEED design in

The Chiyoda Group will continue exploring opportunities

October 2022 and will enter into further detailed commer-

to further develop hydrogen chain infrastructure, connect-

cialization discussions.

ing countries and regions across the globe and facilitating·S cotland to Rotterdam Hydrogen Highway Project:

the expansion of hydrogen as a clean and reliable source

Chiyoda is a leading participant in the hydrogen marine

of energy, fueling industry and realizing society’s hopes oftransportation project (LHyTS) to export hydrogen

realizing carbon neutrality by 2050.

tium of ten companies and governments, including the Net Zero Technology Centre. The Port of Rotterdam’s vision is
to become Europe’s premier hydrogen import hub, connecting storage and transportation infrastructure acrossNorthwest Europe, and this project is key to realizing this goal.

Message

Toward the Realization of the Global Market Introduction of
SPERA Hydrogen Technology
The LHyTS hydrogen highway project in Europe is pivotal to realizing the introduction of SPERA
Hydrogen technology on a global scale. Europe, and other parts of the world, including
Singapore, are rapidly developing marketing and policies surrounding hydrogen and, although
there are challenges to conquer, we will continue with our goal of establishing a hydrogen supply
chain in Europe using our SPERA Hydrogen technology, and developing new business relating toBusiness Environment
Opportunities

Strengths

Risks	Industrial support measures announced bygovernments towards net zero, such as theInflation Reduction Act (IRA) in the USA and theEuropean Green Deal

	SPERA Hydrogen technology enabling­hydrogen to be safely and reliably stored andtransported under ambient temperature andpressure conditions using existing hydrocarbon
infrastructure	Delays in policy development and measures
supporting deal structuring	Hydrogen strategy presentations detailinghydrogen introduction in Japan and investment
in public and private sectors

44

licensing and the supply of catalysts. We also want to contribute to the decarbonization of the

Chiyoda Corporation CHIYODA REPORT 2023

	Integrated engineering capabilities enabling
provision of technology and support

Shunsuke Kato
Netherlands BV, Chiyoda
Corporationworld and pass the baton of a beautiful future to our children.

	Advanced introduction of other hydrogen
carriers, including ammonia and liquefiedhydrogen	Competing technologies

45

Business Strategy

Business Strategy

EnergyManagement
Business

Goals and Strategies
Yutaka Kawanabe
General Manager,
Power & Green Energy System
Project Department,
Global Environment & Green Energy
Project Operations Division

Top Message
We will continue to advance our energy management business by developing systems based on power generation
technologies and more accurate forecasting of power
market prices.
We will also continue contributing to the realization of asustainable environment by promoting feasibility studies
and FEED and EPC opportunities for renewable energy andenergy storage systems, based on our engineering and technological expertise and EPC project execution experience,such as in large-scale battery energy storage system (BESS)
construction and offshore wind power generation.

VisionContinue strengthening our EPC businessin the fields of renewable energy, energy
storage and energy management systems(EMS), expanding into facility operation andmaintenance (O&M) and creating newopportunities utilizing expertise and data
accumulated through the successful completion of EPC projects

2023

2030

VPP/DR BusinessAccelerating commercialization

Ongoing business development

Energy Storage

EPC business development

Continued EPC business

Offshore Wind Power
Generation

Public solicitation support
Contracted engineering services· Onshore electrical equipment EPC
business development· Realization of floating turbine
commercialization

Locally Distributed Energy

Participation in distributed energy
supply business

Strategy
Expand business for regulating power demand, including energy storage EPC/O&M, resource aggregators, and other efforts
Expand the scope of offshore wind power business and strengthen competitiveness through collaboration with partners
regarding floating projects
Accumulate knowledge and participate on the operator side through the expansion of operation and maintenance services

TOPICS ompletion of One of the World’s Largest Battery Energy
C
Storage Systems and Award of an O&M Contract

Fiscal 2022 Review and Initiatives for Fiscal 2023

The completion of one of the world’s largest battery energy storage facilities at the

The Chiyoda Group completed the construction phase ofthat combine the construction of storage and aggregation

Kita-Toyotomi Substation in Hokkaido is essential to stabilize supply/demand of

an EPC contract for one of the world’s largest battery

systems for system operators. Customers in energy stor-

energy storage facilities at the Kita-Toyotomi Substation inage and offshore wind power generation go through a

Hokkaido in March 2023. The Group was also awarded apublic solicitation process in seeking information, proposals

20-year O&M contract for the same facility.

and quotations. The Group will proactively collaborate with

Chiyoda are also accelerating the expansion of our Virtualcustomers through business plan and public solicitation

Power Plant (VPP) and Demand Response (DR) businesses

support to link the realization of their projects to new workin anticipation of the opening of the supply-demand adjust-orders for the Group.

North Hokkaido Wind Energy Transmission Corporation’s power grid by mitigating
fluctuations in unstable wind turbine output, and will double Hokkaido’s wind power
generation capacity by connecting turbines with a 540MW output. The customer, Chiyoda Corporation and major
subcontractors and vendors worked as ‘One Team’ over a five-year period to conquer many challenges, including theextreme weather conditions of northernmost Hokkaido. The Group has also commenced a 20-year O&M contract as
we continue our culture of collaborative project execution in the facility’s operational stage.

ment market in April 2024, and we are proposing solutions
MessageBusiness Environment
Opportunities

Strengths

Risks

Contributing to the Realization of a Decarbonized Society throughEnergy Storage
By capturing energy produced at one specific time for later use, energy storage is an essential	Opening of the supply-demand adjustment
market in April 2024	Accelerating the introduction of grid energy
storage batteries through subsidized projects
	Offshore wind power becoming a main sourceof renewable energy	Battery energy storage systems and power
plants becoming an integral feature of­construction sites	Offshore wind power project engineering	Systems for more accurate power market priceforecasting and optimal market selection
functions	Battery energy storage system control technology using AI to accurately predict renewableenergy generation developments

constituent in the accelerating global transition to clean, renewable energy, enhancing power grid	Extended delivery times and increased material,
equipment and transportation costs due to raw
material shortages and global inflation
	Project feasibility uncertainty due to operators
being selected through public solicitation	Lack of professional resources throughout
the industry

stability and offering flexibility through expanded storage and transmission capacity. Challenges inbalancing supply and demand, particularly during peaks and troughs, are addressed by storingexcess energy to be released when demand is high, thus equalizing the supply/demand curve andavoiding the need for additional power generation, reducing the strain on the grid, increasing effi-

Kokichi Suzuki
Power & Green Energy Systems
Project Department

ciency and minimizing the reliance on expensive power plant produced electricity. Energy storageis therefore an essential component to delivering optimal solutions to customers as we collaborate
to realize our Group’s management philosophy of ‘Energy and Environment in Harmony,’ and I
wish to use my experience in energy storage projects to contribute to achieving carbon neutrality.

46

Chiyoda Corporation CHIYODA REPORT 2023

47

Business Strategy

Business Strategy

Life Science
Business

Goals and Strategies
2023

Shinji Nishida
General Manager,
Life Science Project Department,
Global Environment & Green Energy
Project Operations Division

Top Message
As one of the Chiyoda Group’s four new business domains,the life science field, including pharmaceuticals and industrial
equipment, is an essential component of Group earnings andis increasing in importance due to rapidly changing social
needs in bioindustry.
The Chiyoda Group will continue responding to society’s
evolving requirements by applying our unique cutting-edge
technological prowess as we develop and grow life science
as an essential pillar of earnings.

Vision2030

Pharmaceutical sector: Subsidy support,

Expansion of existing areas

biopharmaceuticals, etc.

Expansion into bioindustry

Industrial equipment: Battery materials, etc.

Respond to needs of a decarbonized societyResource sector: Resource recycling-oriented

Sustained business using next-generation manufac-

measures, domestic resource projects

turing process technology

Strategy
Expansion and promotion of EPC projects
Building of foundations in new fields
Application of continuous production technology

TOPICS
Completion of a Vaccine Production Facility

Evolve into a high value-added biotechnology and life science solution provider

The delivery of a bulk vaccine production facility for Shionogi &Company Limited is a national project of high social significance in the supply of domestically produced vaccines. The
first urgently required production line was completed just eightmonths after construction commenced in August 2020. The
second production line and ancillary equipment were also

Fiscal 2022 Review and Initiatives for Fiscal 2023

delivered on schedule, exemplifying the Chiyoda Group’s project management and technical capabilities.

The Chiyoda Group completed the construction of a bulk

intermediates. Chiyoda is steadily completing projects invaccine production facility for Shionogi & Company Limited

the domestic resource field and promoting expansion into

in January 2023, as part of a national project subsidized by

new fields, such as battery materials. The Chiyoda Group

Japan’s Ministry of Economy, Trade and Industry (METI) andwill continue applying its philosophy of executing projects

the Ministry of Health, Labour and Welfare (MHLW). The

as ‘One Team’ by collaborating with all project stakeholders

Group has also applied its continuous production technol-

to overcome the current severe business environment andogy, cultivated in the petroleum and chemical fields, tosuccessfully deliver future EPC Life Science projects,

Contributing to the Stable Supply of Pharmaceutical Products

pharmaceuticals and invested in the contracted develop-

planned through fiscal 2022 into fiscal 2023.

I worked on the bulk vaccine production facility for Shionogi & Company Limited. I was responsi-

Vaccine production facility constructed for Shionogi & Company Limited

Messageble for culture facilities to produce raw materials for vaccines, from the initial design of the firstment and manufacturing of bulk pharmaceuticals andproduction line through to delivery of the second. Being intimately involved in such a high-valueadded pharmaceutical project from the initial design stages through to delivery was tremendously

Business Environment
Opportunities

rewarding and I particularly enjoyed the challenge of meeting the tight project schedule, despite

Strengths

Risks

COVID-19. Particularly empowering was the strong sense of social significance in delivering vaccines to the people of Japan and contributing to a healthier future for generations to come, both

Masashi Nomura
Life Science Project Department

in Japan and worldwide. As such, I hope to continue to support healthcare, contributing to ahealthier society and helping save lives across the globe.
	Delivering solutions for a longer healthier life
expectancy in an aging society	Return of life science manufacturing facilities
to Japan	Contributing to realizing a decarbonized society	More than 60 years of extensive experiencein the pharmaceutical field, completing over
600 projects
	History of successfully delivering industrial
facilities, similar to pharmaceuticals, in the fieldof natural resources	Lack of investment opportunities during periodsof strong demand or increased competition
during periods of declining demand	Changes in the business environment due tointense competition

	Continuous production technology expertise48

Chiyoda Corporation CHIYODA REPORT 2023

49

Business Strategy

Business Strategy

O&M-X Solutions(Plant Operation and
Maintenance Transformation)

Business Strategy

Business

Chiyoda’s solution service for realizing business safety,

and AI. By building an operating system (OS) platform for

Munenori Maekawa

plantOS™, provides O&M solutions for domestic andthe operation and maintenance of customer plants andGeneral Manager
O&M-X Solutions
Business Department
Global Environment & Green Energy
Project Operations Divisioninternational customers by combining physical onsite

providing services that combine the cyber and the physical,

support provided by Chiyoda X-ONE Engineering with thewe will realize transformation (X) in operation andGroup’s cutting-edge digital technologies in the areas ofmaintenance to support ‘business safety’ for our customers.

advanced analysis, analysis services, IoT, cloud technology

Top Message

VisionProvide solutions supporting safe,
secure and sustainable plant operationand maintenance

The Chiyoda Group’s O&M-X solutions business was launched in
January 2023 and supports customers in overcoming the major
challenges of maintaining safe and secure plant operations,
optimizing plant efficiency and maximizing returns throughout
the life cycle of the asset. The business provides O&M transformation solutions that combine the Group’s EPC expertise withthe latest digital technology, supporting customer labor saving
initiatives, essential in areas with a shortage of available labor,
and improving operational efficiency of deteriorating assets.
The business cooperates with Chiyoda X-ONE Engineering
Corporation, established in April 2023 through the merger ofthree domestic Group companies, to provide hybrid operationand maintenance (O&M) solutions combining cyber (digital)and physical (onsite) elements, supporting safe, secure andsustainable plant operation (business safety).

Solutions services

O&M planning support

O&M optimization

plantOSTM overview

Customers
Business Safety

Physical services

Status monitoring
agency services

Construction work planning

Technical drawing
management agency services

Ongoing maintenance
Shutdown maintenance

Spare parts management
agency services

Construction process management&
partners

Purchasing and procurement agency services

Digital services

Business Objectives

Realizing Business Safety
for Customers

Sensors and IoT solutions
Intelligence

Digital twin solution
V-SuiteAsset management solutions

Supporting sustainable, safe
and secure business operations
Elements required to achieve Business Safety
Area Safety

Safety and security relating to physicalequipment and spaces

Human Safety

Safety and security for peopleIntelligence Safety

Safety and security of intangible assets,
including know-how, technology, IP, dataand information

Area

Human

Customers seek safety and security in their business activi-

technology), engineering capabilities (data engineering andties, and the flexibility to adapt to environmental and social

data science) cultivated since Chiyoda’s founding in 1948,

changes to facilitate business continuity. The Chiyoda

analysis and consulting capabilities utilizing advanced anal-Group considers this ‘business safety’ as a key value pro-ysis and engineering, and EPC project experience accumu-

vided through our O&M-X (plant operation and maintenancelated through the successful completion of projects in overtransformation) business.

60 countries around the world. By organically linking these

The four central requirements to maximizing ‘businesssafety’ are: the latest digital technology (centered on cloud50

Business
SafetyChiyoda Corporation CHIYODA REPORT 2023

elements, we provide advanced, integrated solution services from both cyber and physical perspectives.

Consulting• Support for adoption of sophisticated equipment
maintenance, analysis & diagnosis• Support for adoption of sophisticated operations(yield/efficiency improvement)• Business continuity plan (BCP) support• Smart factory creation

Message

Taking on New Challenges with the O&M Transformation
Solutions BusinessAs a business manager developing O&M-X solutions for overseas markets, I am primarily responsible for collaborating with our USA-based 3D digital twin partner Visionaize to refine our 3D digitaltwin strategy while proposing O&M transformation solutions based on 3D digital twins to customers, supporting safety and security in their business activities.

Kiyori Koyama
O&M-X Solutions
Business Department

51

Foundation
Underpinning
Sustainable
GrowthCONTENTS 
54 Corporate Governance
60 Messages from Outside Directors

In this section, we describe Chiyoda Corporation’s management structure for

62 Risk Management

sustainable growth and other specific initiatives.

66 Compliance
67 Safety Management
68 Intellectual Property Initiatives

52

Chiyoda Corporation CHIYODA REPORT 2023

53

Foundation Underpinning Sustainable GrowthFoundation Underpinning
Sustainable Growth

Corporate Governance

Basic Principles

Development and Management of the Internal Control System

Chiyoda’s vision is a management that maintains the trust and empathy of all its stakeholders, including shareholders, custom-

In accordance with laws and regulations, Chiyoda manages an internal control system to ensure appropriate execution of operations.

ers, business partners, creditors, employees, and local communities. This philosophy is the basis of our corporate activities
and we continue to strengthen Chiyoda’s business foundations, ensuring sound and transparent operations to realize sustain-

Chiyoda established an Internal Control Committee to coordinate and summarize member opinions and proposals. At the end

able growth over the medium to long term. We will also continue to strengthen corporate governance and reinforce our inter-of the term, or when required, the Internal Control Committee proposes internal control improvements to the President & COO.

nal control system as material issues.

The President & COO, through the Executive Advisory Committee, review proposals from the Internal Control Committee
and the Board of Directors makes decisions on the internal control system as required.
To enhance the framework for compliance with laws and regulations, Chiyoda has established the position of CCO (Chief

Governance Structure (as of June 22, 2023)
Organizational Structure

Company with Audit & Supervisory Committee

Executive Officer System

Yes

Number of Directors, Number of Whom are
Outside Directors (Independent Directors)

10
4 (Independent Directors)

Term of Office of Director (Excluding membersof the Audit & Supervisory Committee)

One year

Number of Audit & Supervisory Committee
Members, Number of Whom are Outside
Directors

3
2

Number of Board of Directors’ Meetings Held(fiscal 2022)

21

Number of Audit & Supervisory Committee
Meetings Held (fiscal 2022)

14

Remuneration System for Directors and Audit& Supervisory Committee members•D irectors (excluding those who are Audit & Supervisory Committee members): Base remuneration (according to roles and responsibilities and based on individual assessments), performance-linked remuneration(reflecting the Company’s business performance each term), and performance-based stock compensation(linked to the Company’s medium- to long-term business performance improvements)•D irectors who are Audit & Supervisory Committee members: Base remuneration (according to roles andresponsibilities)

Compliance Officer) and a Compliance Committee.
Corporate Governance and Internal Control System
General Meeting of Shareholders
Appoint / Dismiss

Submit / Report

Appoint / Dismiss

Report / Statement of opinions

Appoint / Dismiss

Audit / Report
Cooperate
Cooperate /ReportAudit & Supervisory Committee

Board of Directors

ReportAppoint

ReportAppoint

Submit / Report

Cooperate
ReportPresident & CEO

CCO

Note: Remuneration for Outside Directors consists solely of fixed remuneration in accordance with roles and responsibilities.

InstructCompliance Committee

Overview of Corporate Governance Structure
Chiyoda is a company with an Audit & Supervisory Committee composed mainly of Outside Directors. Chiyoda operates asystem whereby Directors who are Audit & Supervisory Committee members have voting rights at Board of Directors’ meet-

Accounting Auditors

ReportInstruct

Consult / Reportings and are involved in the nomination of Representative Directors and overall business execution decision-making (excludingInternal Control
Committee
SQEI Management
Committee
Sustainability
Committee

Executive Advisory
Committee

Instruct

InstructInternal
Audit DivisionInternal audit
ReportSubmit /ReportAudit

Financialaudit

decision-making responsibilities delegated to the Directors).
Business Execution Divisions

Chiyoda has appointed four Outside Directors to ensure objective and neutral monitoring of its management functions.

Control / Supervise

Chiyoda has improved objectivity and transparency and ensured the appropriateness of its processes for appointing Directors
and determining Director remuneration through involvement of Independent Outside Directors and full-time Audit & Supervisory

Group Companies

Committee members in decision-making, fulfilling a similar role to a voluntary nomination and remuneration committee.
Committee

Composition and Roles / Responsibilities

Board of Directors• 10 Directors, including Audit & Supervisory Committee members. Monthly Board meetings.
• Important management matters are determined and business execution is monitored. Appropriate decision-making andmanagement supervision is ensured based on the objective and neutral perspectives of the Outside Directors.
• Matters to be decided include management plans, important matters regarding human resources and major investments
and loans.

Executive Advisory
Committee• Through a resolution of the Board of Directors, Chiyoda has established an Executive Advisory Committee, composed of aquorum of half of the Representative Directors concurrently serving as Executive Officers, Senior Vice Presidents and Division
Directors, as an advisory body to the President & COO to supervise business execution and enable prompt decision-making.
• The Committee decides matters regarding business execution adopted by a resolution of the Board of Directors and priordeliberation of matters to be decided by the Board of Directors, and reports to the President & COO, who is responsible for
Chiyoda business execution.

Audit & Supervisory
Committee• Three members (one of whom is full time) consisting of two independent officers and two members with extensive finance andaccounting expertise.
• The Committee conducts audits on the overall business execution of Directors.
• To strengthen its auditing activities, a dedicated staff member is assigned to assist the Audit & Supervisory Committee in theexecution of its duties.

Compliance with the Corporate Governance CodeIn compliance with the Corporate
Governance Code of the Tokyo
Stock Exchange, Chiyoda has formulated a Corporate Governance
Policy, detailing its basic views andguidelines on corporate gover-

Please refer to the following for further information on corporate governance.
Corporate Governance Policy (Japanese)

https://www.chiyodacorp.com/about/202304_CGP.pdf
Corporate Governance Reporthttps://www.chiyodacorp.com/about/202307_CGR_E_R.pdf

nance and promotes initiatives to

Basic Policy on Internal Control Systemstrengthen corporate governance.

	https://www.chiyodacorp.com/about/Basic Policy for Internal Control
Systems_20230328.pdf

54

Chiyoda Corporation CHIYODA REPORT 2023

55

Foundation Underpinning Sustainable Growth

Board of Directors

Director Remuneration System

Chiyoda’s Board of Directors is composed of seven Directors and three Directors who are Audit & Supervisory Committee
members, thus ensuring balance and diversity through a combination of Outside Directors with experience in their fields ofexpertise and Directors with specialist skills and knowledge.
Skills and experience
Name

Position and title

Masakazu Sakakida

Representative Director, Chairman of the Board, President & CEO,CSO*1 & CWO*2

Atsushi Deguchi

Representative Director, Executive Vice President, CFO*3 & CCO*4

Naoki Kobayashi

Director, Senior Vice President

Masao Ishikawa

Director

Koji Ota

Director

Ryo Matsukawa

Outside Director*5

Yutaka Kunigo

Outside Director*5

Shuhei Watabe

Director (Full-Time Audit and Supervisory Committee Member)

Mika Narahashi

Outside Director*5 (Director who is Audit and Supervisory
Committee Member)

Hisashi Ito

Outside Director*5 (Director who is Audit and Supervisory
Committee Member)*1 Chief Sustainability Officer *3 Chief Financial Officer*2 Chief Wellness Officer

Management

Finance
Accounting

Legal andcompliance

Overseas
experience

Basic Policy and Approvalat the General Meetingof Shareholders

Chiyoda’s Director remuneration system was approved at the 93rd Ordinary General Meeting of Shareholders held on June 23,
2021, based on its purpose of enhancing Director awareness of the importance of contributing to improvements in businessperformance and corporate value over the medium to long term.

Revisions to the Director
Remuneration System

The following revisions were made to the remuneration system for Directors, not including those Directors who are Audit &Supervisory Committee members.
• ‘Base remuneration’ reflects an individual’s job responsibilities and individual performance.
• ‘Remuneration for acquiring treasury stock’ is abolished in favor of ‘performance-based stock compensation.’

Process• Chiyoda’s system of Director remuneration (excluding Audit and Supervisory Committee members) strengthens links with performance, value sharing with shareholders and increasing motivation to improve business results. The system consists of baseremuneration (corresponding to roles and responsibilities and linked to individual performance evaluation), performance-linked
remuneration (corresponding to results in each term, based on quantitative factors such as net income attributable to owners of
the parent and shareholder dividends) and performance-based stock compensation (linked to long-term corporate value improvement). The total remuneration in each category is notified to shareholders. Director remuneration is determined by the Board of
Directors based on factors such as internal remuneration standards, within the framework of total remuneration determined at theGeneral Meeting of Shareholders.
• Individual performance evaluations reflected in remuneration are discussed between Representative Directors including management content and economic conditions. To enhance objectivity and transparency and ensure the appropriateness of decisionmaking, the opinions of Independent Outside Directors and full-time Audit & Supervisory Committee members are also
considered. The structure of the remuneration system is also reviewed by the Board of Directors as required.

Project­experience,technical
expertise

Details of the Director Remuneration System
Position

Director meetings to further enhance effectiveness.

Directors(excluding those who
are Audit & Supervisory
Committee members)

Base remuneration

Performance-linked
remuneration

According to the year’s businessresults, taking into consideration
quantitative factors such as net
profit and dividends attributable
to the parent’s shareholders

Performance-based
stock compensation

Enhancing the Effectiveness of the Board of Directors in Fiscal 2022

Process• A questionnaire on the effectiveness of the Board of Directors was provided to all Directors (including Audit & Supervisory
Committee members)• Improvements compared to previous evaluations were confirmed• Opinions on the current fiscal year’s evaluation and on further improvements to the Board’s effectiveness were exchanged• Results and issues going forward were confirmed by the Board of Directors

Questionnaires

Main Items
1. Composition and Management of the Board of Directors
2. Management and Business Strategies
3. Business Ethics and Risk Management
4. Performance Monitoring and Management Evaluation
5. Dialogue with Shareholders<Response of the Board of Directors in Fiscal 2022 to Results of Effectiveness Evaluation Conducted in Fiscal 2021>
In fiscal 2022, we continued transforming our business portfolio and strengthening our stable earnings base founded on the updated
Revitalization Plan and, in response to society’s accelerating drive towards decarbonization, deepened discussions on placing
sustainability at the core of management while diligently sharing information with Directors to further invigorate discussions at Boardof Directors’ meetings and enhance corporate value.
<Evaluation of the Board of Directors in Fiscal 2022>
In fiscal 2022, the Board of Directors, of suitable size and member composition, provided each Director with opportunities to share
information as required. Responsible Independent Outside Directors also participated in discussions, including providing constructive
opinions to the executive side, and supervised the appropriate establishment and operation of internal control systems.
Fiscal 2023 is the final year of our Revitalization Plan and we will review its previous five years to further invigorate and enhancedeliberations at Board of Directors’ meetings to promote business portfolio transformation, strengthen our stable earnings base andfurther increase corporate value.

Overview of remuneration system

No greater than ¥290 million per annum (no greater than ¥30
million per annum for Outside Directors)•T he maximum cash contribution by the Company shall be ¥70
million per annum.
•T he maximum number of shares to be delivered to Directors,
Linked to medium- to long-term
the proceeds of which will be paid to Directors, shall not bebusiness performance improvement
greater than 240,000 shares per annum.
* The initial eligible period is three fiscal years from the year ending March
31, 2022, to the year ending March 31, 2024

Audit & Supervisory
Committee members

Base remuneration

Linked to job duties

No greater than ¥60 million per annum

Outside Director Activities
Classification

Outside Director

Outside Director

Outside Director
Audit & Supervisory
Committee Member

Outside Director
Audit & Supervisory
Committee Member

Chiyoda Corporation CHIYODA REPORT 2023

Remuneration principles

Linked to job duties and annual
individual performance evaluations*4 Chief Compliance Officer

Chiyoda evaluates the effectiveness of the Board of Directors annually. Improvements and issues are discussed at Board of56

Classification*5 Independent Director in accordance with Rule 436-2 of the Tokyo Stock Exchange Securities Listing Regulations

Evaluation of the Effectiveness of the Board of Directors

Evaluation of the­effectiveness and­initiatives going forward

Foundation Underpinning
Sustainable Growth

Corporate Governance

Name

Summary of attendance, statements and duties performed concerning role

Ryo Matsukawa

Mr. Matsukawa’s role is to supervise the Company’s management objectively and professionally based on his­extensive knowledge and experience in the energy industry and corporate management. He attended all Board of
Directors’ meetings (21) in fiscal 2022 and provided comments ensuring appropriateness of decision-making. He
fulfilled his role by providing suggestions, advice and other comments from a multifaceted and expert perspective on
all aspects of Company management.

Yutaka Kunigo

Mr. Kunigo’s role is to supervise the Company’s management objectively and professionally based on his extensive
knowledge and experience in the energy industry and corporate management. He attended all Board of Directors’
meetings (16) following his appointment as director on June 23, 2022 and provided comments ensuring appropriateness of decision-making. He fulfilled his role by providing suggestions, advice and other comments from a multifaceted and expert perspective on all aspects of Company management.

Mika Narahashi

Ms. Narahashi is an experienced attorney in addition to her corporate legal affairs expertise. Her role is to contributeto strengthening the Company’s legal, compliance and governance management by objectively auditing and supervising Company management with a high degree of expertise. She attended all Board of Directors’ meetings (21) and
Audit and Supervisory Committee meetings (14) in fiscal 2022 and provided comments ensuring appropriateness ofdecision-making. She provided recommendations, advice and statements from a legal perspective, including explaining the purpose of laws, and fulfilled the role expected of her.

Hisashi Ito

Mr. Ito’s role is to apply his extensive overseas and corporate management experience to objectively audit and supervise Company management from a multifaceted perspective. He attended all Board of Directors’ meetings (21) and
Audit and Supervisory Committee meetings (14) during fiscal 2022 and provided comments ensuring appropriatenessof decision-making. He fulfilled his role by using his knowledge of financial accounting, IT and digital technology tomake proposals and provide advice regarding the Company’s overall management.

57

Foundation Underpinning Sustainable GrowthFoundation Underpinning
Sustainable Growth

Corporate GovernanceDirectors and Audit & Supervisory Committee Members
Masakazu Sakakida
Representative Director,
Chairman of the Board,
President & CEO,CSO & CWO

Atsushi Deguchi
Representative Director,
Executive Vice President,
CFO & CCO

Naoki Kobayashi
Director,
Senior Vice President

Masao Ishikawa
Director

1981: Joined Mitsubishi Corporation(Heavy Machinery Department)
2001: Mitsubishi International Corporation,
New York, USA
2006: General Manager, Plant & Heavy Machinery Unit,
Plant & Industrial Machinery Business Division of
Mitsubishi Corporation
2012: General Manager for Group Strategy Planning,
Machinery Group CEO*1 Office, and Group CIO*2,
Machinery Group of Mitsubishi Corporation
2013: Senior Vice President, Chairman & Managing
Director, Mitsubishi Corporation India Private Ltd.,and Deputy Regional CEO, Asia & Oceania(Southwest Asia) (New Delhi)

2017: Executive Vice President, Corporate Functional
Officer, Chief Compliance Officer and Officer,
Emergency Crisis Management Headquarters of
Mitsubishi Corporation
2021: Director of Mitsubishi Corporation Representative
Director, Chairman of the Board, CEO and CWOof the Company
2022: Representative Officer, Chairman, President &CEO, CSO & CWO of the Company(current position)

1991: Joined The Bank of Tokyo Ltd.
(now MUFG Bank, Ltd.)
2016: President of Bank of Tokyo-Mitsubishi UFJ Turkey
A. . (now MUFG Bank Turkey A. .)2018: President, MUFG Bank Turkey A. .
2019: Managing Director, Head of Corporate Banking
Division 1, Corporate Banking Group 1,
MUFG Bank, Ltd.
2020: Executive Officer, Managing Director of Corporate
Planning Department (Special Assignment),
MUFG Bank, Ltd.
2021: Executive Officer, Regional Executive,
MUFG Bank of India and Sri Lanka

2023: Representative Director, Executive Vice President,
CFO, CCO and Division Director of the Finance &Accounting Division of the Company(current position)

1998: Joined Mitsubishi Corporation(Heavy Machinery Department)
2012: Executive Vice President, General Manager of
Rio de Janeiro Branch, Mitsubishi Corporation(Brazil)
2016: General Manager, Plant Projects Department,
Mitsubishi Corporation
2018: General Manager, Infrastructure & Industrial
Projects Department, Mitsubishi Corporation
2019: General Manager, Chiyoda Turnaround and
Growth Management Office, Plant Engineering
Division, Mitsubishi Corporation

2020: Assistant to Division Director, Strategy &Risk Integration Division of the Company
2021: Vice President, Strategy & Risk Integration
Division and Assistant to Division Director,
Technology & Engineering Division of
the Company
2023: Senior Vice President and Division Director,
Strategy & Risk Integration Division of theCompany (current position)

Yutaka Kunigo
Outside Director*3

Shuhei Watanabe
Director,
Full-Time
Audit and Supervisory
Committee Member

Mika Narahashi
Outside Director,
Audit & Supervisory
Committee Member*3

1980: Joined the Company
2011: General Manager, Gas LNG Process Engineering
Department of the Company
2013: Vice President and Deputy Division Director,
Technology & Engineering Division of
the Company
2015: Senior Vice President and Division Director,
Technology & Engineering Division of
the Company
2020: Executive Vice President and Division Director,
Technology & Engineering Division of
the Company
2021: Senior Advisor of the Company
Director of the Company (current position)

Hisashi Ito
Outside Director,
Audit & Supervisory
Committee Member*3*1 Chief Executive Officer

Koji Ota
Director

Ryo Matsukawa
Outside Director*3

58

Chiyoda Corporation CHIYODA REPORT 2023

1989: Joined Mitsubishi Corporation
2012: General Manager, Smart Community Business
Integration Unit, Environment & Infrastructure
Business Division of Mitsubishi Corporation
2013: General Manager, Environment Energy
Business Unit,
Environment & Infrastructure Business
Division of Mitsubishi Corporation
2015: Director, Lithium Energy Japan
2018: Executive Vice President, Lithium Energy Japan
2019: Senior Vice President, Division COO,
Plant Engineering Division of Mitsubishi
Corporation

1979: Joined Tokyo Shibaura Electric Co., Ltd.
(currently Toshiba Corporation)
2007: General Manager, Technology Management Div.,
Toshiba Corporation Power Systems Company
2011: General Manager, Fuchu Complex,
Toshiba Corporation
2013: Executive Quality Leader, Toshiba Corporation
Power Systems Company
2014: Representative Director, President and Chief
Executive Officer, Toshiba Plant Systems &Services Corporation
2021: Outside Director of the Company(current position)

2022: Executive Vice President, Group CEO,
Industrial Infrastructure Group, Division COO,
Plant Engineering Div. of Mitsubishi Corporation
Director of the Company (current position)
2023: Executive Vice President, Group CEO,
Industrial Infrastructure Group of Mitsubishi
Corporation (current position)*2 Chief Information Officer

1977: Joined Tokyo Gas Co., Ltd.
2010: Managing Executive Officer, Chief Executive ofResources Business Division of Tokyo Gas Co., Ltd.
2013: Director, Managing Executive Officer, Chief
Executive of Energy Production Division ofTokyo Gas Co., Ltd.
2014: Representative Director, Vice President, Executive
Officer, Chief Executive of Energy Solution
Division of Tokyo Gas Co., Ltd.
2015: Representative Director, Vice President, Executive
Officer responsible for Power Business Planning
Department, Business Renovation Project
Department, and Sales Innovation Project
Department of Tokyo Gas Co., Ltd.

2016: Representative Director, Vice President,
Executive Officer responsible for Power BusinessControl Department, Chief Executive of Energy
Production Division responsible for PowerBusiness Planning Department of Tokyo Gas
Co., Ltd.
2017: Director and Chairman, Tokyo Gas Engineering
Solutions Corporation
2020: Outside Director, Nippon Paper Industries
Co., Ltd. (current position)
2022: Outside Director, Ise Chemicals Corporation(current position)
Outside Director of the Company(current position)

1991: Joined Mitsubishi Corporation(Energy Administration Department)
2013: Department Manager, MC Group Business
Infrastructure Support Office and Team Leader,
Planning & HR Team of Corporate Division,
Mitsubishi Corporation
2014: General Manager, Business Administration
Department, Metal One Corporation
2016: General Manager, Corporate Accounting
Department, Metal One Corporation

2018: Chief Financial Officer, Latin America andCaribbean Region, Mitsubishi Corporation andChief Financial Officer, Mitsubishi Corporation do
Brasil S.A.
2021: Board Director, Senior managing Executive
Officer, Mitsubishi Corporation Life Sciences
Limited2023: Director of the Company (Full-Time Audit andSupervisory Member) (current position)

2000: Registered as a lawyer (Tokyo Bar Association)
2003: Joined Anderson Mori & Tomotsune
2007: Joined Deutsche Securities Inc.
2009: Joined American Life Insurance Company(currently MetLife, Inc.) Senior Manager of Legal
Affairs Department of American Life Insurance
Company
2015: Joined AIG American Home Assurance
Company, Ltd., Head of Legal Affairs Office of
AIG American Home Assurance Company, Ltd.

2017: Senior Partner of TH Law Office(current position)
2018: Director of the Company (Audit & Supervisory
Committee Member) (current position)

1983: Joined The Mitsubishi Trust and Banking
Corporation
2005: General Manager, Money Market Activities
Division, Mitsubishi Trust and Banking
Corporation
2010: General Manager, London Branch,
Mitsubishi UFJ Trust and Banking Corporation
Executive Officer, Mitsubishi UFJ Trust andBanking Corporation
2012: Managing Executive Officer,
Mitsubishi UFJ Trust and Banking Corporation
2013: Managing Director, Mitsubishi UFJ Trust andBanking Corporation

2015: Senior Managing Director (Representative
Director) and CIO, Mitsubishi UFJ Trust andBanking Corporation
2016: Representative Director, Senior Managing
Executive Officer and CIO
2017: Representative Director, President, The Master
Trust Bank of Japan, Ltd.
2019: Representative Director and Chairman,
Mitsubishi UFJ Trust Systems Co., Ltd.
2020: Audit and Supervisory Committee Member of theCompany (current position)*3 Outside Director as stipulated in Article 2,
Item 15 of the Companies Act

Executive Officers
President

Senior Vice President

Vice President

Masakazu Sakakida

Naoki Kobayashi

Takayuki Naito

Toshiaki Saito(CSO & CWO)

Norimasa Matsuoka

Keio Naruko

Kimiho Sakurai

Executive Vice President

Tetsuya Konno

Masami Tamura

Yuzo Masuda

Atsushi Deguchi

Masaki Kumagai

Katsuhiko Jogan(CFO & CCO)

(CHRO*4 & CDO*5)

Hiroyuki Shimizu*4 Chief Human Resources Officer*5 Chief Digital Officer

59

Foundation Underpinning Sustainable Growth

Leveraging Our Strengths in Contributing
to Sustainable Management

Leveraging Internal Controls to
Support Our Transformation asa Value-creating Company

Fiscal 2023 is the final year of Chiyoda’s Revitalization Plan, released in 2019 toreflect changes in the business environment and the increasing drive towards a

Chiyoda’s value lies in combining our engineering expertise, cutting-edge techno-carbon free society, and we continue to implement measures such as comprehen-logical proficiency and comprehensive EPC project execution capabilities to meetsive risk management and the transformation of our business portfolio. At Board ofcustomers’ sophisticated functional requirements. We released Chiyoda’s

Directors’ meetings, we discuss and review detailed proposals submitted by the

Revitalization Plan - Initiatives for Revitalization and the Future in 2019, and con-executive side. As Outside Directors, our goal is to ensure Chiyoda meets share-tinue transforming our business portfolio in response to the increasing global drive

holder expectations and we examine issues such as clarity of management and theto realize environmental sustainability and a decarbonized society. The transition

thoroughness and effectiveness of measures designed for medium- to long-termfrom conventional energy to environmental and frontier business fields, such as

growth. The Chiyoda Group combines our corporate strength of engineering exper-

renewable energy and hydrogen, is steadily producing results. Outside Directors aretise with state-of-the-art technology to meet social challenges, such as the acceler-

Ryo Matsukawa
Outside Director

ating drive towards carbon neutrality, the SDGs and diversity, and we apply thesestrengths to advance management with an awareness of continuity. We will continue executing the Revitalization Plan, strengthening our financial base and achieving stable business management while maintaining a virtuous cycle of employee
motivation, increasing earnings and customer satisfaction. I hope to keep contrib­
uting to Chiyoda’s continued growth from risk management and corporate governance perspectives.

Foundation Underpinning
Sustainable Growth

Messages from Outside Directors

essential, supervising management from an independent perspective conscious of

Hisashi Ito
Outside Director
Audit & Supervisory Committee Member

the interests of our stakeholders and wider society. The Board of Directors values
Outside Director opinions and makes transparent business decisions following free
and open discussion between management personnel responsible for businessexecution.
As an Audit & Supervisory Committee Member, I also focus on Chiyoda’s endeavors to autonomously enhance its internal controls and cooperate with the Internal
Audit Department to drive internal control improvements, including compliance.
Chiyoda continues to positively respond to the accelerating drive towards a carbon-neutral society and I will continue to support our endeavors in my position as

Supervising Management froma Legal Perspective

an Outside Director and Audit & Supervisory Committee Member, providing constructive recommendations and engaging in positive dialogue with management
and frontline employees.

I have been an Outside Director and Audit & Supervisory Committee Member sinceJune 2018. Listed companies are rapidly progressing their corporate governancereforms, and Chiyoda’s Board of Directors has undergone significant changes since
my appointment. The number of Internal Directors has been reduced, and the Boardof Directors has been reduced from fourteen (of which five were Audit & Supervisory
Committee Members) to ten members (of which three are Audit & Supervisory
Committee Members). Concurrently, the number of Independent Outside Directors
has increased from three to four, raising their ratio. The Board of Directors now convenes more effective meetings with fewer members while achieving a clearer separation between management execution and supervision. As an Independent Outside

Mika Narahashi
Outside Director
Audit & Supervisory Committee Member

Director, this has afforded me greater opportunities to use my specialized knowledge
at Board of Directors’ meetings to provide input in terms of diversity. I communicate
directly with Chiyoda personnel from many departments and am always impressedby the pride our employees, the most valuable asset of an engineering company,
take in our technology and their sense of mission. Although some employees may
feel uncertain as the world progresses towards a decarbonized society and Chiyoda
transforms its business portfolio, these are the situations in which to prove ourstrengths of our sense of mission and pride in our technology.
I will continue with my diligent yet adaptable approach in my capacity as an
Outside Director and Audit and Supervisory Committee Member, leveraging thestrengths of all Chiyoda colleagues to improve our company even more.

60

Chiyoda Corporation CHIYODA REPORT 2023

61

Foundation Underpinning Sustainable Growth

Risk Management in Business Operations

Project Risk Management

Risk Management Policy

Approach

Foundation Underpinning
Sustainable Growth

Risk Management

The Chiyoda Group continues to enhance the sophistication of its risk management and project execution systems to minimize

Effective and early risk management is key to successful project delivery. Our Strategy & Risk Integration Division assumes

risks and maximize opportunities. A Strategy & Risk Integration Division was established in 2019 to implement the Company’s

the role of a ‘control tower,’ centrally managing project risk identification and mitigation and providing management support

risk strategy, support project teams in managing risk throughout every stage of the project life cycle from feasibility study and costthroughout every stage of a project.

estimation to project completion, handover, and operation and maintenance, and promote risk management Companywide.

Under this integrated risk management system, the Chiyoda Group will continue to enhance the precision of our projectRisk management measures include:

management in terms of cost, scheduling and quality, ensure the most effective use of digital technology and improve data

Continual improvement of risk management (see diagram below):
We continuously enhance the reporting, informing and consulting processes (known as the ‘Ho-Ren-So’ principle in Japanesebusiness culture) as part of company regulations and harness employee feedback from regular risk management workshops­organized to raise risk awareness and instill a risk-conscious culture throughout the Group.

management to further enhance corporate competitiveness and increase profit.
Project Risk Management Structure

Risk analysis throughout the entire project life cycle: We implement risk management plans and procedures to identify andmitigate risks from early feasibility analysis and cost estimation through to project award, front-end and detailed engineering, exe-

Strategy & Risk Integration Division

cution, completion, delivery, and operation and maintenance. Customer participation, project discipline input from key personnel(Integrated risk management)

within the Group, JV partners (where applicable), and major subcontractors is obtained at the earliest opportunity to obtain special-

Management Support

ist advice into risk identification and mitigation, design and construction, construction and labor strategy, commissioning, operationand maintenance, productivity enhancement, etc. This early involvement in strategy ensures risks are identified and discussed earlyin an open and honest ‘One Team’ culture of collaborative project execution.
Optimal resource allocation: The Chiyoda Group has created human resource committees, under an Executive Advisory
Committee, to optimize resource allocation and advance business vertically within divisions and horizontally across Group companies. The committees include an Integrated Strategy Committee to formulate business and key personnel plans for each divisionand establish human resource plans and allocate finances to maximize efficiency.
These initiatives have consolidated risk management within the Group, contributing to the steady execution of projects acquiredsince the release of the Revitalization Plan in 2019 and securing stable earnings growth.

Relevant
Divisions
Energy Project
Operations

Project Risk Management

	Reinforce business foundation	Determine order-securing strategies supported by financial and human resource
capabilities	Implement strategic human resource
management
	Promptly identify areas requiring improvement through joint efforts with relevant
divisions	Develop a framework that facilitates thetimely reporting of areas in need of improvement to management

	Assess projects from take-up and identify,
analyze, evaluate, and formulate measures
for risk management at the proposal submission stage	Develop an execution structure for projects
upon securing their orders
	Monitor, analyze, evaluate, and formulate
measures, and visualize the profitability anddevelopment process of ongoing projects
	Establish best practices and utilize lessons
learned from completed projects

Global Environment& Green Energy
Project Operations
Frontier Business
Alignment
Cooperation

HR & DX
Business
Development
Technology &Engineering
Construction
General Affairs

Risk Management System

Finance &Accounting

Refined Data Management
Audit / Report

Board of Directors
Appoint

Audit & Supervisory
Committee

Submit / Report

Project Risk Management Flow
President & CEO

CCO

Key Project-Related Risks

Compliance Committee

Executive Advisory Committee(President / CFO / Division Director, etc.)

Internal Control Committee
SQEI Management Committee
Sustainability Committee

Technology risk

Risk ProfilingCountermeasures

Monitoring(at the time of estimation andbefore securing orders)(at the time of estimation andbefore securing orders)(from execution tocompletion)

Step 1

Step 2

1

Material procurement andprice escalation risk

Management assistant

Prevent

Labor shortage and wage risk
Instruct

Consult /ReportStrategy & Risk Integration Division
Management /Guidance /Project support

Instruct

Submit /ReportInstruct

ReportForeign exchange risk
Regulatory risk
Disaster risk

Business Execution Divisions
Control / Supervise

2

Geopolitical risk

Report / Consult

Risk of diminished confidence among
business partners, vendors, andsubcontractors

PolicyAnticipate
and identify
risk items

Quantitatively
and qualitatively assess
risk items

Transfer3
Mitigate

4

Accept(cost effects)

Key measures• Modify contract terms• Share risks with customers
and/or partners• Partnering• Decentralize vendors andsubcontractors• Minimize local construction(modular construction
method, etc.)• Hedge risks throughinsurance• Utilize foreign exchange
contracts• Allocate reserve funds

Assess risks andmonitor the status ofcontrol measuresregularly from theexecution ofprojects to theircompletion anddelivery phase, andpractice the PDCA
cycle systematicallyGroup Companies

62

Chiyoda Corporation CHIYODA REPORT 2023

63

Foundation Underpinning Sustainable GrowthFoundation Underpinning
Sustainable Growth

Risk Management

Business Risk Management
Major risks(a) Business trends and effects ofeconomic, social and politicalchanges(b) N atural disasters, infectious­disease, geopolitical risks andforce majeure events(c) Risks related to partners(d) Increasing equipment, material
and transportation costs

Risks to our businessCountermeasures· Global economic, social and political trends in the oil, LNG and metals markets causing customers toterminate, postpone or change investment plans·D evelop strategies based on analysis of factors such as project order certainty· Negative effects on customer and/or partner financial circumstances·R isk sharing arrangements with customers· Loss of life and/or major injury· Logistical challenges due to supply chain disruption· Construction schedule delays· Increased equipment, material and transportation costs· Business performance impacts as a result of contractual responsibility in the event of joint venture
partner default or deteriorating financial circumstances· Increasing equipment material and transportation costs due to changes in the socio-political situation· Material price fluctuations, including materials such as copper, nickel, aluminum and zinc
· Overseas transportation cost increases, including higher insurance premiums·F ormulate order receiving plans and back-up projects·C omprehensive safety planning including emergency response procedures for natural disasters, etc.
· Employ security consultants, etc., as required to strengthen crisis management through information gathering and analysis·D evelop and manage a business continuity plan (BCP) for major natural disasters, encompassing initial response and safety procedures·S tringent and comprehensive partner selection procedures to identify risks·D iversify procurement from suppliers around the world·E arly placement of equipment, material and transportation orders·F oster good working relationships with top-tier suppliers·R isk sharing arrangements with business partners, customers, vendors and subcontractors·E valuation of alternative construction methodologies (modularization, etc.)(e) Human resource, equipment
and material-related risks· Labor, material and/or equipment procurement risks causing schedule delays and additional
recovery costs.

·C ollaboration with international and/or local contractors and vendors·L ocal networking·V erify project schedules prior to receiving orders and have planning specialists continually monitor schedules throughout the entire project
life cycle(f) Risks associated with changes inthe business environment· Adverse business impacts due to changes in customer investment environments and businessportfolios·C ontinually monitor energy supply markets, climate change policies, laws and regulations in each country and promptly harvest market
intelligence·R ecognize global energy challenges as a business opportunity and formulate business plans accordingly towards realizing a decarbonized
and carbon-recycling society·P romote investment within the Chiyoda Group and in collaboration with startup companies to avoid excessive shifts to self-sufficiency(g) Plant incidents· Loss of life and/or major injury·A pply safety as our core value throughout all project life cycle stages from feasibility study to design, construction handover, operation andmaintenance· Liability for compensation in the event of a major incident·A dequate and appropriate insurance and contract terms that reasonably share the risk burden·P romote C-Safe to foster a safety culture within the Group and between all stakeholders(h) Currency risk

· Currency fluctuations affecting business results·R eceive payments from customers in the same currency in which payments are made·F orward currency exchange contracts· Continuous employee education through programs such as group training and e-learning(i) Compliance violations· Actions that violate, or raise suspicion of violating, the laws and regulations of the countries andregions in which we operate.

· Incorporation of compliance into business processes and continuation of a Compliance Committee chaired by the Chief Compliance Officer(CCO) with the divisional Compliance Officers as members and a Group Company Compliance Liaison Committee, also chaired by the CCO, withsubsidiary presidents as members·E nhance defensive measures in anticipation of cyberattacks(j) Information security threats· Incidents such as system failures due to unforeseen circumstances, confidential information leaks,
fraud due to cyberattacks and loss of important business information· ISMS certification for corporate headquarters and Group companies, and stringent and comprehensive information security management,
including education and audits·S haring cyberattack-related risks with customers(k) Business investment losses

64

Chiyoda Corporation CHIYODA REPORT 2023

· Investees’ earnings not meeting initial plans, losses on investments due to poor business results,
need for additional financing·S tringent due diligence procedures as part of a comprehensive appraisal process·M onitoring investee business plans following investment and providing personnel and/or capital support capital if required (regular reportingto the Executive Advisory Committee)

65

Foundation Underpinning Sustainable Growth

Safety Management

Chiyoda considers compliance a core value, based on our conviction that the trust of society and its customers
underpin a company’s business activities. We proactively enhance compliance education and training programs toprevent unlawful and fraudulent acts and human right infringements, while continuing to reinforce our compliancesystems to ensure their early detection, a swift response, and measures to prevent reoccurrence. We are unwavering in our commitment to further strengthening compliance throughout the Group.

The Group’s Compliance System
The CCO, appointed by the Board of Directors, is responsible for overseeing compliance in all divisions. Compliance Officers in each division are responsible for compliance policies and implementing compliance measures in their respective divisions. Group company representatives serve as Group Company Compliance Officers and are responsible for implementing compliance measures in their company.

Code of Conduct
The ‘Chiyoda Group Code of Conduct and Conduct Guidelines’ ensure our business activities conform to national and internationallaws and regulations, company rules, and social ethics. All officers and employees are expected to comply with, and base their decisions and actions upon, the standards set within the code and guidelines.

Initiatives to Enhance Compliance Awareness and Knowledge

All Chiyoda Group directors and employees regularly engage in educational training courses based on our Safety, Quality andEnvironmental (SQE) policy, including our unique behavioral based safety program, ‘C-Safe.’ We continuously strive to embed a sustainable culture of safety throughout our organization by tirelessly enhancing employee SQE expertise and experience through training
and promoting SQE activities through collective Groupwide endeavors.

Key Initiatives

Details

e-learning

Conducting annual compliance-related e-learning for all Group employees

Email newsletter

Distributing monthly compliance newsletters by email, containing news, topics,
and trivia, to all employees in Japan
Chiyoda conducts seminars in Japanese and English on high-risk complianceissues, including:· Prevention of harassment· Bribery prevention· Business and human rights
Every Group company evaluates their own compliance risks and implements
initiatives accordingly

The Chiyoda Group adopted the DuPont Sustainable Solutions Bradley Curve™ in 2020, identifying four stages of safety culture maturity,with a view to assessing safety on its construction sites and, by combining this approach with our C-Safe Program, we are currently
advancing from the independent stage to the interdependent stage. To meet our ‘duty of care’ obligations as a responsible employer, andrecognizing that the health of employees is a key determinant of productivity, we have also initiated programs to maintain the physical andmental health of all Group personnel, focusing on improving our working environment and promoting a supportive management culture. The
C-Safe management system is specifically designed to address the challenges and complexities of health and safety management on construction sites. With a strong focus on leadership, commitment and employee involvement, the program provides a foundation for a safe,
healthy working environment by going further than merely addressing compliance to legislation, rules andregulations. Through the proactive involvement of all directors in leading improvements of working habits
and employees changing unsatisfactory ingrained methods of working, C-Safe requires all Group personnel
to consciously contemplate what actions we should demonstrate, tolerate and reward.
Construction and safety-related issues

The Chiyoda Group advances compliance by implementing multi-faceted initiatives to enhance executive and employee complianceawareness and knowledge.

Evaluation of compliance risks affecting each­organization NEW

The Road to Establishing Safety Leadership

C-Safe Program

Organizational StructureInternal seminars

Foundation Underpinning
Sustainable GrowthCompliance

Natural instinct

Reactive stage:	Responsibility for safety is not assumed and accidents are perceived as something that will
eventually occur
Dependent stage:
Safety is expected as long as rules are followed
Independent stage:
Responsibility for safety is assumed and the actions of each individual are believed to makea difference
Interdependent stage:
Accept responsibility and be proactive for realizing a culture of safety is assumed by the team
Thinking ‘no accidents is an achievable goal’Directions of supervisors
Individual-centeredapproach

Respond only toaccidents that haveoccurred

Reactive stage

Team-centeredapproach

Adhere only to laws
and regulations and the
directions of supervisors

Act voluntarily based on one’s
knowledge and experience

Act with consideration for
one’s peers

Dependent stage

Independent stage

Interdependent stage

Source: DuPont Bradley Curve™

Safety Performance
Internal Whistleblowing System
Chiyoda has implemented a whistleblowing system within theGroup and has established external hotlines within Group companies (to lawyers, external specialists, etc.) as ‘points of contact’
to report unlawful and fraudulent acts, enabling early resolution
and preventing recurrence. We have also distributed ‘internal
whistleblowing cards’ to raise awareness of the internal whistleblowing system and inform officers and employees of the ‘pointsof contact’ inside and outside the Group.

		Consultations Provided and Whistleblowing Reports
Received in Fiscal 2022
Category
Legal violations and bribery(including cartel and other concerns)
Violations of internal rules
Power harassment (including consultations,canceled items, and other concerns)
Sexual harassment and pregnancy discrimination
Workplace environment issues
Other consultations
Total

Please refer to the following for Group compliance details.

https://www.chiyodacorp.com/en/csr/risk-management/compliance/initiatives.html

66

Number of consultations provided andwhistleblowing
reports received infiscal 2022
014

As stated in the Chiyoda Groups SQE policy, we believe that ‘every incident ispreventable,’ and we relentlessly pursue zero accidents and incidents in theworkplace, while instilling a ‘learner mindset’ on all our construction sites. The
graph on the right illustrates the Chiyoda Group’s safety performance over thefive calendar years up to 2022 and we continue to monitor LTIR*1 and TRIR*2
on domestic and overseas construction sites as key safety indicators.
*1 LTIR (Lost Time Incident Rate) = Number of lost-worktime injuries*/Number of hours worked × 200,000*2 TRIR (Total Recordable Incident Rate) = Number of lost-worktime injuries*/Number of hours worked × 200,000

TRIR / LTIR at Overseas and Domestic Sites
0.3

TRIR
0.27

0.2

0.20

0.22

0.10
0.1

0

LTIR
0.02

0.01

2018

2019

0.04
2020

0.14

0.01

0.02

2021

2022 (Year)* Including fatalities

24
1
7
30
76

Environment Day
On World Environment Day, Chiyoda Group offices and construction sites worldwide organized events
to share information about the importance of countermeasures against all forms of environmental pollution, to raise awareness regarding protecting the environment and to motivate all people to takeaction. The Group will continue such initiatives in the future to expand public awareness of the importance of a sustainable environment.
CTJV–World Environment Day 2023

Chiyoda Corporation CHIYODA REPORT 2023

67

Foundation Underpinning Sustainable GrowthFoundation Underpinning
Sustainable GrowthIntellectual Property Initiatives

Basic Principles

Patent Portfolio

Chiyoda’s intellectual property fuels our position ahead of the competition, and rigorous measures are implemented to protect

Chiyoda applies for patents across the globe and we currently hold patents in over 52 countries and regions. As part of ourit. We also take appropriate action to prevent infringements on the intellectual property rights of others.

Revitalization Plan, we are transforming our business portfolio to realize a 50:50 profit contribution ratio from existing and new
businesses by 2030, and are filing patent applications for technologies related to new businesses to achieve this goal.

Intellectual Property Strategies

Countries and Regions in which Chiyoda Holds Patents(as of November 2022)

Chiyoda applies three intellectual property strategies to entrench existing businesses and cultivate new ones in the transformation of our business portfolio, as detailed in our Revitalization Plan, and to maintain our competitive advantage.

Percentage of Filed Patent Applications Related to New /Existing Businesses by Four-year Period%
100

1. Initiatives for new businesses

75

Contribute to the earnings of new businesses on which we are focused as part of our ‘Vision for 2030’ and secure intellectual
property that will afford us competitive advantages

50

2. Initiatives for unexplored areas and businesses

25

Identify focus points leading to profitable unexplored areas and businesses, evaluate technologies that initiate innovation and0formulate strategies for new business development

New Businesses

2011–20142015–20182019–2022

Existing Businesses

3. Initiatives for innovation in EPC technologies
Visualize, codify and patent engineering knowledge and technologies that drive innovation in EPC businesses

Risk Management

Organizational Structure

Chiyoda implements stringent and comprehensive research and reviews prior to commencing a new business to mitigate the

Chiyoda’s Intellectual Property Section forms part of our Strategy & Risk Integration Division’s Corporate Planning Department

risk of infringing the intellectual property rights of others.

and is central to formulating and implementing intellectual property activities tailored to our business strategies, intellectual
property management activities—such as filing patent applications—and managing intellectual property risk. An Intellectual
Property Manager is appointed in each of the main departments that propose inventions to cooperate with the Intellectual

Trademarks

Property Section to identify inventions, organize our patent portfolios and manage intellectual property risk.

Chiyoda files applications to register new trademarks required for our operations and actively manages existing registeredtrademarks.

President

Energy Project
Operations Division

Global Environment &Green Energy Project
Operations Division

Technology andEngineering Division

Intellectual
Property Manager

Intellectual
Property Manager

Intellectual
Property Manager

Existing Registered Trademarks

Strategy & Risk
Integration Division

Frontier Business
DivisionIntellectual
Property Manager

Cooperation

Corporate Planning
Department

The Chiyoda
Corporate Logo

Intellectual Property
SectionLogo from the Digital Transformation Business

Logo from the Hydrogen Supply
Chain Business

Main Departments that Propose Inventions

Message from the Expert

Message from the Expert

Chiyoda’s intellectual property protects essential business assets integral to achieving our pur-

Chiyoda’s intellectual property-related activities contribute to the transformation of our businesspose of ‘Enriching Society through Engineering Value.’ The Intellectual Property Section collabo-

portfolio. We continue to strengthen communications with business divisions such as Life

rates with each division to drive business through intellectual property-related activities covering

Science and Energy Management to implement intellectual property activities in line with ourareas such as patent acquisition and intellectual property risk management.

business goals. The protection of intellectual property and the research of intellectual property
held by others prior to commencing business also extends to digital technology in areas such as

Hiroshi Oinaka(Patent Attorney)Intellectual Property Section,
Corporate Planning Department

68

Chiyoda Corporation CHIYODA REPORT 2023

EPC and O&M.

Yasunori Ono(Patent Attorney)Intellectual Property Section,
Corporate Planning Department

69

Data Section
In this section, we provide key data on the Chiyoda Group,
financial results over the past 11 years and ESG initiatives.

CONTENTS 
72 Key ESG Data
74 Eleven-Year Summary
76 Corporate Information

70

Chiyoda Corporation CHIYODA REPORT 2023

71

Data Section

Key ESG Data
Data Section

Environmental Initiatives

Social Initiatives

The Chiyoda Group strives to realize its corporate philosophy of ‘Energy and Environment
in Harmony’ and further contribute to the sustainable development of society through its
business activities.

The Chiyoda Group contributes to local communities through its business activities, such as
human resource development, human rights and labor initiatives, and social contributions.
We also cultivate a corporate culture that embraces diversity and individuality, as well as theuniqueness of each director and employee, and boost employee morale through our respect
for individuals and their families.

KPI
CO2 emissions*1
Scope 1
Scope 2
Scope 1 + 2*2
Environmental Data for Domestic Construction Sites
Industrial waste disposal quantity (excluding sludge)
Final landfill disposal quantity (excluding sludge and incinerated ash)
CO2 emissions
Industrial waste recycling rate (excluding sludge)
Electronic manifest penetration rate
Adoption of environmental proposals
Environmental Data for Overseas Construction Sites(Released from March 2020)
Industrial waste disposal quantity
Final landfill disposal quantity(excluding recyclable resources and incinerated ash)
CO2 emissions
Industrial waste recycling rate
Adoption of environmental proposals
Environmental Data for Chiyoda Group Company Offices
Power consumption
Energy consumption
CO2 emissions
Chilled water consumption
Steam consumption
Cold water consumption
Waste disposal volume
Waste recycling rate
Printing paper consumed

Unit

2019/3

t-CO2
t-CO2
t-CO2
Tons
Tons
Tons-CO2%%
Cases

2020/32021/32022/32023/3

–
–
–

–
–
–

52,942
16,87069,81260,395
8,843
69,23886,336
7,293
93,62917,138
1,059
5,665
76.8
94.6
347

22,223
1,464
4,642
92.8
90.8
236

13,549
1,432
–
89.7
90.2
237

16,577
828
–
95.0
98.98
132

9,905
787
–
92.1
99.50
138

Tons

–

6,868

4,097

3,841

12,207

Tons

–

4,624

3,075

1,976

4,873

Tons-CO2
%
Cases

–
–
–

56,970
17.0
111

–
3.5
150

–
5.6
98

–
49.5
59

1,000 kWhkl
Tons-CO2
1,000 m3
GJ
GJ
Tons
%
Tons

10,331
3,295
6,083
17.5
4,541
14,201
241
95.4
80

9,313
3,018
5,685
15.2
4,633
13,785
281
96.5
70

8,294
2,678
–
9.8
4,849
10,865
214
92.9
43

8,426
2,754
–
11.3
5,428
10,938
147
89.7
25

8,415
2,807
–
17.0
5,434
11,880
208
88.2
23

KPI
Employee Status
Average years of service
Average age of employees
Turnover rate excluding retirement
Employee Diversity
Ratio of female employees among new recruits
Number of female employees among new recruits
Ratio of mid-career employment
Ratio of women among all employees
Average years of service of female employees
Number of women in management positions
Ratio of women in management positions
Ratio of employment of persons with disabilities
Number of non-Japanese employees
Employee Support
Number of employees taking childcare leave
Number of employees taking sick/injured childcare leave
Number of employees taking nursing care leave
Number of employees taking temporary retirement for nursing care
Number of employees working reduced hours for childcare
Number of employees dispatched for on-site training/on-site instruction
Volunteer Activities
Number of employees participating in reconstruction assistance
Number of employees participating in cleanup activities(around Chiyoda Global Headquarters and Koyasu Office)Number of vaccines donated through the collection of plastic bottle caps
under ECOCAP Program
Number of school lunches donated through TABLE FOR TWO

Unit

2019/32020/32021/32022/32023/3

Years
Years
%

12.3
41.0
2.5

12.7
41.3
4.7

14.2
41.2
2.9

14.2
41.4
3.6

12.2
41.8
3.3

%
Persons%%
Years
Persons%%
Persons

25
12
25.0
16
8.1
25
3.5
1.6
63

27
14
16.1
16
9.0
28
3.8
1.7
73

31
11
36.7
16
9.4
28
3.7
1.7
77

21
7
59.1
17
9.6
54
6.3
1.6
71

24
10
66.1
17
9.6
90
8.3
1.6
78

Persons
Persons
Persons
Persons
Persons
Persons

26
11
9
0
12
42

28
23
10
1
27
47

43
18
10
0
24
24

50
4
5
0
31
25

68
6
4
0
39
30

Persons

53

9

0

0

0

Persons

110

120

25

8

12

Vaccines

292

278

207

184

210

Lunches

1,561

1,557

1,386

1,288

1,285

*1 CO2 emissions have been presented by scope since 2020. Chiyoda Group offices include overseas Group companies.
*2 Chiyoda Global Headquarters and Koyasu Office & Research Park are included in domestic office category (Tokyo Office is not included).
Joint Venture ratio is applied to overseas construction sites.

Governance Initiatives
The Chiyoda Group is dedicated to transparency and stability in its operationsin accordance with the highest ethical standards.

KPI
Compliance-related Actions
Number of employees receiving compliance training(new recruits, mid-career hires, and executives and associate executives)
Number of employees receiving compliance training(overseas assignment, site managers at field offices, export control,and bribery prevention)
Number of employees attending compliance seminars held by external
instructors
Number of employees receiving compliance training via e-learning
Number of reports submitted under the Compliance Consultation andWhistleblowing System
Initiatives for Business Continuity
Business continuity plan (BCP) training
Actions for Information Security
Number of serious information security-related incidents
Governance-related Data
Number of outside directors

72

Chiyoda Corporation CHIYODA REPORT 2023

Unit

2019/32020/32021/32022/32023/3

Persons

112

114

114

83

123

Persons

168

248

422

1,254

1,788

Persons

172

711

2,021

1,235

1,921

Persons

4,669

5,704

5,189

5,179

5,289

Cases

36

98

93

108

64

Times

2

0

1

0

2

Cases

0

0

0

0

0

Persons

5

5

4

4

4

73

Data Section

Eleven-Year SummaryData Section

Chiyoda Corporation and Consolidated Subsidiaries

Millions of yen (excluding key ratios)

2013/3

2014/3

2015/3

2016/32017/3

2018/3

2019/32020/32021/32022/32023/3

Revenue

398,918

446,147

480,979

611,548603,745

510,873

341,952

385,925

315,393311,115

430,163

Gross Profit (Loss)

42,51541,46245,651

41,52038,2238,618(181,148)

42,82320,061

22,79432,709

SG&A Expenses

17,402

20,38324,18525,50522,543

20,94818,647

16,033

13,046

12,24914,592

Operating Income (Loss)

25,11321,07921,466

16,015

15,680(12,330)(199,795)

26,7897,015

10,545

18,116

Ordinary Income (Loss)

25,51822,837

22,271

16,205(3,080)(10,100)(192,998)

18,644

8,462

11,431

20,322Net Income (Loss) Attributable to Owners of the Parent

16,077

13,447

11,0293,375(41,116)6,445(214,948)

12,177

7,993(12,629)

15,187

Current Assets

383,206

409,096444,578455,030

425,244374,470

326,929

360,387

305,891

372,682

382,958

Current Liabilities

230,431

261,679

294,339

311,106

301,182

247,847

392,505

319,878

244,657

350,675

356,256

Total Assets

435,379475,288515,839528,219

461,331420,337

352,341

385,051

329,583

395,396406,588

Interest-Bearing Debt

10,22011,305

11,01010,348

10,211

10,00015,98935,87045,74745,621

29,090Net Assets

189,356

198,031

208,405

202,128

157,125

159,418(59,154)

24,94336,747

15,761

22,310Shareholders’ Equity

188,386

196,411

206,395

200,166

155,339

157,557(60,114)

24,42336,39915,654

22,180Cash Flows from Operating Activities

14,147(17,177)(24,145)

55,526(4,375)(34,115)(37,941)(32,217)(20,806)(25,591)

44,157

Cash Flows from Investing Activities(5,257)(16,796)(5,444)(26,750)

10,433(1,428)778(7,828)(2,250)(3,787)

7,889

Cash Flows from Financing Activities(4,432)(5,249)(4,569)(3,942)(2,693)(1,468)4,020

89,2009,478(4,197)(17,057)

180,229

145,303113,246

136,919

138,889

101,767

68,306

115,932

98,73869,099106,682

Gross Profit (Loss) Margin (%)

10.7

9.3

9.5

6.8

6.3

1.7

(53.0)

11.1

6.4

7.3

7.6

Return on Assets (ROA) (%)

6.4

5.0

4.5

3.1

(0.6)

(2.3)

(50.0)

5.1

2.4

3.2

5.1

Return on Equity (ROE) (%)

9.0

7.0

5.5

1.7

(23.1)

4.1(441.2)(68.2)

26.3(48.5)

80.3

Shareholders’ Equity Ratio (%)

43.3

41.3

40.0

37.9

33.7

37.5

(17.1)

6.3

11.0

4.0

5.5

Current Ratio (%)

166.3

156.3

151.0

146.3

141.2

153.0

83.3

112.7

125.0

106.3

107.5

Debt Equity Ratio (DER) (Times)

0.05

0.06

0.05

0.05

0.07

0.06

(0.27)

1.47

1.26

2.91

1.31

Earnings Per Share (EPS) (Yen)  62.06  51.91  42.58  13.03(158.76)  24.89(830.02)  40.9422.76(56.88)50.54

Book-value Per Share (BPS) (Yen)727.24758.31796.89772.89599.83608.41(232.13)(182.07)(143.94)(218.11)(201.02)

Dividend Per Common Share (Yen)

19

16

13

10

6

7.5

–

–

–

–

–

Common Dividend Payout Ratio (%)

30.6

30.8

30.5

76.7

38.7

30.1

–

–

–

–

–

–

20.78

–

–

5.2

21.0

(8.3)

7.7

Results for the Year

Financial Position at Year-End

Cash Flows

Cash and Cash Equivalents, at End of Year
Key Ratios

Dividend Per Type A Preferred Share* (Yen)Price Earnings Ratio (PER) (%)

16.9

25.6

24.1

63.3

(4.5)

40.3

(0.3)

* Type A Preferred Shares were issued in July 2019.

74

Chiyoda Corporation CHIYODA REPORT 2023

75

Data Section

Corporate Information
Company Profile

Stock Information

Company Name

Chiyoda Corporation

Established

January 20, 1948

Paid-In Capital¥15,014 million

Number of
Employees

3,995(consolidated and equity-method affiliates)

Business Activities

Integrated engineering businessChiyoda Global Headquarters
Koyasu Office & Research Park

Main Offices
Project Experience

April 1 to March 31 of the following year

Ordinary General
Meeting of
Shareholders

June

Number of
Authorized Shares

Common Stock
Type A Preferred Shares

Number of
Shareholders

In over 60 countries

Chiyoda’s Global Network (Major Overseas Subsidiaries and Offices)

Fiscal Year

Number of Issued
and Outstanding
SharesListing of Shares
Stock
Transaction Unit

Milan Representative OfficeChiyoda Corporation
Netherlands B.V.

Common Stock

1,500,000,000
175,000,000

260,324,529(1 unit = 100 shares)

Type A Preferred Shares
175,000,000
(1 unit = 1 share)
Common Stock

41,767

Type A Preferred Shares

1

Tokyo Stock Exchange, Standard Market

Abu Dhabi Office
The Netherlands
Italy
Chiyoda Petrostar Ltd.
Saudi Arabia
Qatar
Middle East
Headquarters
Doha OfficeChiyoda Almana
Engineering LLC

China
UAE

Japan
Chiyoda Global Headquarters

Philippines
Myanmar
Malaysia

100 shares

Chiyoda Philippines Corporation

Indonesia

PT. Chiyoda International Indonesia

Chiyoda Oceania Pty. Ltd.

Chiyoda Human Resources International (Pte.) Limited

Number of
Ratio of
SharesSharesOwned(Thousands of Owned (%)
Shares)86,931

33.39

MUFG Bank, Ltd.

9,033

3.47

Individuals andothersOthercorporations

41.3%

37.6%

The Master Trust Bank of Japan, Ltd.
(Trust Account)

8,320

3.19

Number ofIssued andOutstanding Shares

GOVERNMENT OF NORWAY

4,782

1.83

260,324,529

Chiyoda Employee Shareholding Association

4,365

1.67

The Mitsubishi UFJ Trust & Banking Corp.

3,874

1.48

SSBTC CLIENT OMNIBUS ACCOUNT

2,377

0.91

JP MORGAN CHASE BANK 385781

2,050

0.78

Securities
companies

Foreign
investors

Meiji Yasuda Life Insurance Company

2,039

0.78

1.4%

9.2%

Chiyoda Kyoeikai

2,031

0.78

Chiyoda Malaysia Sdn. Bhd.

Major Subsidiaries and Affiliated Companies
Engineering (as of April 1, 2023) 
Chiyoda X-ONE Engineering Corporation (CXO)
	(Established on April 1, 2023 through a merger of three companies:
Chiyoda Kosho Co., Ltd., Chiyoda System Technologies Corporation,
and Chiyoda TechnoAce Co., Ltd.)

Number of
Ratio of
SharesSharesOwned(Thousands of Owned (%)
Shares)175,000

Services: Comprehensive engineering business(planning, engineering design, procurement, construction,commissioning, maintenance) and insurance business(non-life insurance and life insurance agency business)related to industrial equipment, etc.

https://cxo.chiyodacorp.com/english/
Financial
institutions

10.6%

Digital 
TIS Chiyoda Systems Inc.
Services: Consulting, development, and operation for integrated IT
systems

https://www.tc-systems.co.jp/english/

PlantStream Inc.
Services: Development and sales of ‘PlantStreamTM’

https://plantstream3d.com/

Business Support 
Chiyoda U-Tech Co., Ltd.

2. Type A Preferred Shares

Mitsubishi Corporation

USABeijing Office
Chiyoda Corporation (Shanghai)

Breakdown of Shareholders

Mitsubishi Corporation

Shareholder

 hiyoda International
C
Corporation

Singapore

1. Common Stock (10 Largest Shareholders)Shareholder

Sales baseEngineering center
Procurement center
Project execution base
Operation support base

Chiyoda & Public Works Co., Ltd.

Australia

Major Shareholders

Data Section(As of March 31, 2023)

	Services: Technical consulting in energy and environmental fields,
engineer staffing, and outsourcing services

Arrow Business Consulting Corporation
Services: Consulting for finance and accounting

https://www.utc-yokohama.com/english/

100

Inquiries
Chiyoda Corporation
IR, PR & Sustainability Advanced Section, Corporate Services Department
Minatomirai Grand Central Tower 4-6-2, Minatomirai, Nishi-ku, Yokohama 220-8765, Japan

		 Inquiries

https://www.chiyodacorp.com/en/contact/index.php

76

Chiyoda Corporation CHIYODA REPORT 2023

Chiyoda Corporation joined the UN Global
Compact in 2012, declaring its commitment
to 10 universal principles in the following fourareas: human rights, labor, the environment,
and anti-corruption. Guided also by the spiritof CSR Value, we are promoting initiatives ineach of these four areas.

77Chiyoda Global Headquarters
Minatomirai Grand Central Tower,
4-6-2, Minatomirai, Nishi-ku,
Yokohama, Kanagawa, Japan
https://www.chiyodacorp.com/en/

Printed in Japan