Translation

November 11, 2009

Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2010
Company name: CHIYODA CORPORATION
Listing:First Section of the Tokyo Stock Exchange
Stock code:
6366
URL:
http://www.chiyoda-corp.com/
Representative: Takashi Kubota, President & CEO
Inquiries:
Shinji Kusunoki, General Manager, Accounting Department
TEL: +81-45-506-9410 (from overseas)
Scheduled date to file Quarterly Report: November 12, 2009
(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated performance for the second quarter of the fiscal year ending
March 31, 2010 (from April 1, 2009 to September 30, 2009)(Percentages indicate year-on-yearchanges.)(1) Consolidated operating results (cumulative)
Net sales

Operating income

Millions of yen
2Q ended September
30, 2009
2Q ended September
30, 2008

2Q ended September
30, 2009
2Q ended September
30, 2008% Millions of yen

Ordinary income%

164,658 (31.6)(2,382)-

240,760

6,904

Net income per share

Fully diluted net
income per share

YenYen(6.73)－24.36

24.36

Millions ofyen(380)Net income% Millions of yen%--(1,745)

9,755

6,059

Equity ratio

Net assets per share(2) Consolidated financial position
Total assets
Millions of yen

Net assets
Millions of yen%

Yen

As of September 30,357,968
144,055
2009
As of March 31,
357,816
145,9172009
Reference: Equity As of September 30, 2009: 143,503 million yen

40.1

553.3340.7

561.12–1–

As of March 31, 2009: 145,513 million yen

2. Cash dividends
Cash dividends per share
Record date

First quarter

Second quarter

Third quarter

Fiscal year-end

AnnualYenYenYen
Yen
Fiscal year ended–––7.50
March 31, 2009
Fiscal year ending––
March 31, 2010
Fiscal year ending
March 31, 2010–
3.00(Forecast)
Note: Revision of the forecast in the Second quarter of the fiscal year ending March 31, 2010: None

3.

Yen
7.50

3.00

Consolidated earnings forecasts for the fiscal year ending March 31, 2010 (fromApril 1, 2009 to March 31, 2010)(Percentages indicate year-on-year changes.)
Net sales
Millions ofyen

Fiscal year ending
March 31, 2010

Operating income Ordinary income%

320,000 (28.3)

Millions ofyen%Millions ofyen

1,000 (86.2)%

4,000 (65.1)

Net income pershare

Net income
Millionsof yen%

Yen

2,000 (69.2)

7.71

Note: Revision of the forecasts in the second quarter of the fiscal year ending March 31, 2010: None

4.

Others(1) Significant changes in subsidiaries during the period (changes in specified subsidiaries
resulting in the change in scope of consolidation): None
(2) Application of simplified accounting as well as specific accounting for preparing the quarterly
consolidated financial statements: None
(3) Changes in accounting policies, procedures, and methods of presentation for preparing thequarterly consolidated financial statements (changes described in the section of “Changes insignificant matters forming the basis of preparing the quarterly consolidated financialstatements”)
a. Changes due to revisions to accounting standards: Yes
b. Changes due to other reasons: None–2–(4)Number of issued shares (common stock)a. Total number of issued shares at the end of the period (including treasury stock)
As of September 30, 2009
260,324,529 shares
As of March 31, 2009
260,292,529 sharesb. Number of treasury stock at the end of the period
As of September 30, 2009
977,254 shares
As of March 31, 2009
963,763 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscalyear)
For the Second quarter of the fiscal year ending March 31, 2010 259,340,373 shares
For the Second quarter of the fiscal year ended March 31, 2009 248,713,605 shares* Proper use of earnings forecasts, and other special directions
The forward-looking statements, including earnings forecasts, contained in thesematerials are based on information currently available to the Company and on certain
assumptions deemed to be reasonable. Actual business and other results may differ
substantially due to a number of factors.

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5. Qualitative Information and Financial Statements
Qualitative Information on Consolidated Results of Operations

During the cumulative second quarter of the current consolidated fiscal year, the market environment
surrounding the Chiyoda Group appears some signs of recovery—particularly in emerging countries—from
the global financial crisis that erupted during the prior fiscal year. There have been steady, positive
movements in customer investment activities, matching expectations for a rebound in the industrial demandfor oil and gas.
In response to this environment, the Chiyoda Group has focused on securing contracts for new projects.
At the same time, the Chiyoda Group is engaged in the steady execution of on-going projects. Of the sixtrains (7.8 million tons/year each) in the ultra-large-scale LNG plants under construction in Qatar, twowere completed, in addition to the single train completed during the prior fiscal year. The Chiyoda Groupis now working to complete the remaining three trains. Because of significant construction delays in theQatargas Trains 6 and 7 caused by the lower-than-expected productivity of the construction subcontractors,
the Chiyoda Group incurred additional costs by having to adopt various measures to reinforce construction
resources, including the hiring of new subcontractors. Accordingly, construction costs for the project haveincreased. Such being the situation, the Chiyoda Group will further strengthen its project risk management,
particularly with respect to Qatargas Trains 6 and 7, and use utmost effort to improve its profitability.
Consolidated New Contracts for the cumulative second quarter of the current consolidated fiscal year
amounted to ¥73.218 billion (year-on-year decrease of 37.3%), while the consolidated Contract Backlog
amounted to ¥328.014 billion (41.0% year-on-year decrease). The Chiyoda Group recorded cumulative
Consolidated Revenues of ¥164.658 billion (31.6% year-on-year decrease), an Operating Loss of ¥2.382billion (compared to a consolidated Operating Profit of ¥6.904 billion for the same cumulative quarter inthe prior fiscal year), an Ordinary Loss of ¥380 million (compared to Ordinary Income of ¥9.755 billion forthe same cumulative quarter in the prior fiscal year), and a Net Loss amounted to ¥1.745 billion (comparedto a Net Income of ¥6.059 billion for the same cumulative quarter in the prior fiscal year).
Progress according to business segments are as follows :(Natural Gas, Electric Power)
Given the recent movement in the resumption of gas-related investment activities by gas-producing
countries and major energy firms, the Chiyoda Group has focused its efforts overseas on securing newcontracts for LNG plant construction in Papua New Guinea, Floating LNG plants in Brazil, and LNG plantbasic design services in Venezuela. In terms of project execution, the Chiyoda Group has continued to beengaged in a multiple number of basic design/project execution planning services, in addition to theconstruction of large-scale LNG plants. A Group subsidiary established in Qatar has started long-term
services related to design, procurement, and construction management activities for LNG/gas processing
plants contracted during the prior fiscal year. These long-term service contracts are part of the Plant
Lifecycle Engineering (PLE) initiative the Chiyoda Group has been developing for some time.
In domestic Electric Power/Gas Industries, the Chiyoda Group has been awarded a contract for basic
design services related to an LNG receiving terminal, and the Chiyoda Group continues to focus on theexecution of existing projects, including three large-scale LNG receiving terminals in Niigata andOkayama prefectures.

–4–

(Petroleum, Petrochemicals, Gas Chemicals)
In the overseas petroleum segment, the Chiyoda Group is involved in investment plans for refineries in
the Middle East and Southeast Asia and, we were awarded a contract for Coker Unit in Saudi Arabia. TheChiyoda Group is also heavily involved in contracts for desulfurization plant design services in Singapore,and EPC (engineering/procurement/construction) management services for refinery improvement projects
in Venezuela.
In the domestic petroleum segment, the Chiyoda Group has expanded sales activities for equipment
maintenance projects, while large-scale investment has come full circle. The Chiyoda Group is also heavily
involved in environmental preservation projects strongly demanded by society and in planning services forexisting refineries to improve their competitiveness.
(General Chemicals, Industrial Machinery, Environment and Others)
The general chemicals and industrial machinery segment has experienced increased global competition
to secure rare metals. At the same time, advanced recovery technologies for natural resources continue tobe developed. In response to these developments, the Chiyoda Group has reentered the market in nickel
and other non-ferrous metal refining. To contribute to the realization of a low-carbon society, the Chiyoda
Group has become actively involved in the solar cell and lithium ion battery fields from the first stages ofproject planning, and continues to conduct sales activities to secure new contracts.
The biopharmaceutical segment has seen an increase in projects related to antibody drugs, vaccines for
new types of influenza and generic drug projects. The Chiyoda Group has expanded sales activities inassociated with such investment projects.
(Note) See page 9 for more information related to new orders, revenues, and backlog–5–6. Consolidated quarterly financial statements(1) Consolidated quarterly balance sheets (1/2)(Millions of yen)
As of September 30,

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed
construction contracts
Short-term investment securities
Costs on uncompleted construction contracts
Jointly controlled assets of joint venture
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets–6–2009

As of March 31,
2009

35,942

38,747

69,99550,651

95,841
17,44980,601
21,347(4)
321,174

96,841
16,920100,426
17,265(3)
320,848

7,991
11,953
1,565
21,511
4,721

8,130
11,953
1,916
22,001
4,921

7,858
3,036
(332)
10,561
36,794357,968

6,955
3,423
(333)
10,04536,968357,816

Consolidated balance sheets (2/2)(Millions of yen)

Liabilities
Current liabilities
Notes payable, accounts payable for construction
contracts
Current portion of long-term loans payable
Income taxes payable
Advances received on uncompleted construction
contracts
Provision for warranties for completed constructionProvision for loss on construction contracts
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets–7–

As of September 30,
2009

As of March 31,
2009

88,60377,020

8
1,391

18
5,457

87,703

91,661

4,474
4,564
2,897
12,002201,644

3,801
4,302
3,557
13,398199,218

10,0001,715
553
12,268
213,913

10,004
2,288
388
12,681
211,899

43,396
37,112
66,060(1,115)
145,454

43,392
37,10869,730(1,105)
149,126

148(916)(1,182)(1,950)552
144,055
357,968(775)(1,368)(1,469)(3,613)404
145,917357,816(2) Consolidated statement of income(Millions of yen)
Second quarter ended
September 30, 2008
(From April 1, 2008
to September 30, 2008)

Net sales of completed construction contracts
Cost of sales of completed construction contracts
Gross profit on completed construction contracts
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Foreign exchange gains
Real estate rent
Other
Total non-operating income
Non-operating expenses
Interest expenses
Rent expenses on real estates
Stock issuance cost
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary income
Reversal of allowance for doubtful accounts
Total extraordinary income
Extraordinary loss
Loss on valuation of investment securities
Total extraordinary losses
Income (loss) before income taxes and minority
interests
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income
Net income (loss)–8–

Second quarter ended
September 30, 2009
(From April 1, 2009
to September 30, 2009)

240,760
228,070
12,6895,785
6,904

164,658
161,056
3,601
5,983(2,382)

2,966
57
53
140
128
73
3,421

633
51
1041,257
71
97
2,215

172
79
271
46
570
9,755

126
49
38
213(380)123
123-521
521

-

9,357

(380)

747
2,538
3,286
11
6,059

2,656
(1,329)1,327
37(1,745)

7.

Production, Contracts and Sales (Consolidated)
Millions of Yen
2Q FY2009
Apr. 1, 2009 September. 30, 2009
Net salesAmt%

New contracts
Amt%

Backlog of contracts
Amt%

Business Segment
Engineering
LNG plants..................................
Gas and power utilities ...............
Gas chemicals ............................
Petroleum and petrochemicals ...
General chemicals........................
Industrial machinery .....................
Environment and other ...............
Total Engineering

6,333
9,320
47
44,891
7,273
936
2,049
70,854

8.7
12.7
0.1
61.3
9.9
1.3
2.8
96.8

55,81428,141
194
53,695
14,810423
9,052
162,132

33.9
17.1
0.1
32.6
9.0
0.3
5.5
98.5

83,746148,279
698
74,775
13,4352,301
4,064
327,301

25.5
45.2
0.2
22.8
4.1
0.7
1.3
99.8

Other...........................................

2,363

3.2

2,525

1.5

712

0.2

Domestic.....................................
Overseas ....................................
Total ...........................................

36,46236,75573,218

49.8
50.2
100.0

79,49085,167
164,658

48.3
51.7
100.0

172,387
155,626
328,014

52.6
47.4
100.0

Millions of Yen
2Q FY2008
Apr. 1, 2008
September. 30, 2008
RevenuesAmt%

New contracts
Amt%

Backlog of contracts
Amt%

Business Segment
Engineering
LNG plants..................................
Gas and power utilities ...............
Gas chemicals ............................
Petroleum and petrochemicals ...
General chemicals........................
Industrial machinery .....................
Environment and other ...............
Total Engineering

38,835
11,0337539,295
19,491
1,621
3,068
113,421

33.3
9.4
0.1
33.6
16.7
1.4
2.6
97.1

119,835
69,093
170
32,223
9,063
2,768
4,491
237,645

49.8
28.7
0.1
13.4
3.7
1.1
1.9
98.7

214,767
170,543
978115,143
30,544
5,749
17,402555,129

38.7
30.7
0.2
20.7
5.5
1.0
3.1
99.9

Other...........................................

3,388

2.9

3,115

1.3

569

0.1

Domestic.....................................
Overseas ....................................
Total ...........................................

63,09053,720116,810

54.0
46.0
100.0

47,686
193,073
240,760

19.8
80.2
100.0

205,496
350,202555,699

37.0
63.0
100.0

Note: The backlog of contracts for the six months ended September 30, 2009 includes a decrease due tochanges in construction contracts acquired in prior fiscal years, an increase due to adjustments in
new contract amounts, and an increase due to foreign exchange translation adjustments.

–9–