Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/enThe presentation was held in Japanese.
This document is a translation/summaryfor reference only.

14 February 2020
IR, PR & CSR Department
Chiyoda Corporation

Summary of the Q&A session of the Presentation of theThird Quarter Financial Results for the Fiscal Year ending 31 March 2020
The following is a summary of a Q&A session of a presentation (telephone conference), held inTokyo, Japan, of Chiyoda Corporation (“Chiyoda”, TSE:6366) 3Q financial results for the Fiscal
Year ending March 31, 2020 released on February 4, 2020.
QuestionAnswer

1

How have the Cameron LNG incentives The construction work on Cameron LNG isboosted profits? Is there any possibility progressing as planned. The January 2020
that incentives will occur in the future?
milestone was achieved ahead of schedule in
December 2019, resulting in 3Q incentives.
Future incentives and plans will not be
disclosed due to client confidentiality.

2Have you attained the gross profit margin The gross profit margin of 7.4% projected atof 7.4% projected at the beginning of this the beginning of this fiscal year has beenfiscal year?
attained for ordinary projects as a whole.

3

At 4.7%, why is the gross profit margin The part of the profits expected in 4Q were
low in 4Q?
secured in 3Q ahead of schedule. Please take alook at 3Q and 4Q average. Potential risks,such as the effects of the coronavirus, areestimated in 4Q.

4What is your new order strategy and While prioritizing the execution of ongoing
outlook?
projects, Chiyoda has also focused on ourinvolvement in future expected EPC projects.
Specifically, Chiyoda is pursuing new a LNG
order in Qatar, an Indonesian copper smelting
projects and domestic orders. Based on thelessons learned from last years huge financial
deficit, Chiyoda is ensuring profits from neworders whilst not overstretching its orderintake.
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Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

5

What about a reduction of SG & A SG & A expenses have reduced year-on-year
expenses in the future?
and Chiyoda has promoted streamlining until
3Q. SG & A expenses may increase in 4Q due
to year-end factors, but we will continue tocontrol them.

6

What are the anticipated effects of the new The new coronavirus has had no impact on ourcoronavirus?
financial results up to now. Chiyoda iscurrently manufacturing modules in China forour ethylene project is Texas, USA and aprolonged outbreak may affect production.
Any disruption to the supply chain of Chinese
products is not limited to our company
however and we are in discussion with ourcustomers regarding any possible affects. We
are closely monitoring the impact of the newcoronavirus on ongoing projects and haveestimated certain risks in the full-year forecast
ending March, 2020.
-End-

Note: The above text was modified for a better understanding of the content.
Any projections included in these materials are based solely on information available at the time thispresentation was prepared. It is possible that actual results may vary significantly from the projections
due to a number of risk factors such as economic conditions. The results projected here should not be
construed in any way as being guaranteed by the Company. Investor are recommended not to depend
solely on these projections for making investment decisions.

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