Translation

August 6, 2009

Consolidated Financial Results
for the First 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: August 11, 2009
(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated performance for the first quarter of the fiscal year ending March 31,
2010 (from April 1, 2009 to June 30, 2009)(1) Consolidated operating results (cumulative)
Net sales
Millions of yen(Percentages indicate year-on-year changes.)

Operating income% Millions of yen

Ordinary income% Millions of yen

Net income% Millions of yen%

1Q ended June 30, 2009

82,677 (27.7)

2,870 112.1

3,848

17.5

2,081

16.6

1Q ended June 30, 2008

114,347

1,353

3,274-

1,785--Net income per share-

Fully diluted net
income per share

YenYen1Q ended June 30, 2009

8.03

8.03

1Q ended June 30, 20087.50

7.50(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of June 30, 2009

351,875

148,37642.0

570.07

As of March 31, 2009

357,816

145,91740.7

561.12

Reference: Equity

As of June 30, 2009: 147,849 million yen–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-endYenYen
Yen
Fiscal year ended
March 31, 2009
Fiscal year ending
March 31, 2010
Fiscal year ending
March 31, 2010
(Forecast)
Note: Revision of the forecast in the first quarter of the fiscal year ending March 31, 2010: None

3.

AnnualYenYen

7.50

7.50

--

6.00

6.00

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

Operating income Ordinary income

Millions ofyen%Millions ofyen

2Q ending September
30, 2009 (cumulative)

180,000(25.2)

4,500 (34.8)

Fiscal year ending
March 31, 2010

320,000(28.3)

7,500%3.8

Millionsof yen%

Net income pershareNet income
Millions ofyen%

Yen

5,500 (43.6)

3,000 (50.5)

11.57

9,000 (21.4)

5,000 (23.1)

19.28

Note: Revision of the forecasts in the first 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 the quarterlyconsolidated financial statements (changes described in the section of “Changes in significant
matters forming the basis of preparing the quarterly consolidated financial statements”)
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 June 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 June 30, 2009
973,228 shares
As of March 31, 2009
963,763 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the first quarter of the fiscal year ending March 31, 2010
259,332,534 shares
For the first quarter of the fiscal year ended March 31, 2009
237,976,425 shares* Proper use of earnings forecasts, and other special directions
1. The forward-looking statements, including earnings forecasts, contained in these materials are
based on information currently available to the Company and on certain assumptions deemed tobe reasonable. Actual business and other results may differ substantially due to a number offactors.
2. Commencing with the current fiscal year, the “Accounting Standard for Quarterly FinancialReporting” (ASBJ [Accounting Standards Board of Japan] Statement No. 12) and the “Guidanceon Accounting Standard for Quarterly Financial Reporting” (ASBJ Guidance No. 14) areapplied. Also, quarterly consolidated financial statements are prepared in accordance with the“Regulation for Quarterly Consolidated Financial Statements.”–3–5. Qualitative Information related to Consolidated Performance(1) Analysis Results
In the first quarter of the consolidated fiscal year under review, we have seen signs of a resumption in
investment projects that had been postponed due to the impact of the fall-off in the product market andcontraction in demand caused by the dramatic economic decline that started during the prior fiscal year.
Under these circumstances, the Chiyoda Group has focused on securing new contracts while engaging
in the steady execution of existing projects. Of the six trains (7.8 million ton/year each) being
constructed in Qatar for a ultra-large-scale LNG plant, the Chiyoda Group has completed a total ofthree; two completed recently in addition to the train completed during the prior period.
Consolidated New Contracts for the first quarter of the consolidated fiscal year under review was
54.27 billion yen (a 17.3% year-on-year increase), while consolidated Contract Backlog amounted to395.465 billion yen (36.3% year-on-year decrease). Consolidated Revenues amounted to 82.677 billion
yen (27.7% year-on-year decrease), with Operating Income of 2.87 billion yen (112.1% year-on-yearincrease), Ordinary Income of 3.848 billion yen (17.5% year-on-year increase), and Quarterly Net
Income of 2.081 billion yen (16.6% year-on-year increase).
Progress according to business segment is as described below.
<Natural Gas, Electric Power>
Overseas: Given recent movement in the resumption of gas-related investment plans by gas-producing
countries and major energy firms, the Chiyoda Group has focused its energies on new contracts. In
addition to construction work on large-scale LNG plants, the Group has continued implementation ofbasic design/project execution planning services. Our subsidiary established in Qatar began work
related to long-term services in LNG/gas processing plant design/procurement/construction
management services contracted during the prior period. The Chiyoda Group is capitalizing on thesetypes of long-term services to promote our Plant Lifecycle Engineering (PLE) business, which we havebeen planning to build for some time.
Domestic electric power/gas industry: Given the fuel shift toward LNG associated with the demand todecrease CO2, as well as the expansion of the gas sales business, there have been plans for newconstruction of and expansions to large-scale LNG receiving terminals. The Chiyoda Group has won
new contracts for basic design services related to LNG receiving terminal construction.
<Petroleum, Petrochemicals, Gas Chemicals>
In the overseas petroleum segment, the Chiyoda Group has aimed projects for refineries in the Middle
East and Southeast Asia. In Saudi Arabia, we were awarded EPC(engineering/procurement/construction) work for a Coker Unit.
The domestic petroleum segment has experienced a contraction in investment plans; however, there isa persistent sentiment for investment in energy conservation/environmental protection projects andefficiency improvement projects, combined with active investment in new energy/renewable energy,
and the Chiyoda Group as a whole is responding by increasing activities to win new contracts.

–4–

The Group noted some postponements of investment projects in the petrochemical segment; however,
we are actively engaged in work toward new contracts for maintenance projects in this field.
<General Chemicals, Industrial Machinery, Environment and Others>
In the General Chemicals/Industrial Machinery field, the Chiyoda Group has focused efforts on entry
into the related materials market reflecting global policies for the widespread adoption of solar cells, aswell as markets related to lithium ion batteries for automotive use.
With increasing new entries and increased production in the biopharmaceutical (antibodies/vaccines)
segment of the pharmaceuticals field, the Chiyoda Group is responding by stepping up our sales
activities to win new contracts in this segment.
(Note) See Page X for more information about segment New Orders, Revenues, and Contract Backlog.

–5–6.

Consolidated quarterly financial statements(1) Consolidated balance sheets(Millions of yen)
As of June 30, 2009

As of March 31, 2009
(Summary)

36,172

38,74754,20050,651

88,841

96,841

20,95816,92097,377

100,426

17,017

17,265(3)(3)

314,564

320,848

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts
Short-term investment securities
Costs on uncompleted construction
contracts
Jointly controlled assets of joint venture
OtherAllowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net

8,045

8,130

Land

11,953

11,953

Other, net

1,807

1,916

Total property, plant and equipment

21,80722,001

4,811

4,921

Investment securities

7,911

6,955

Other

3,114

3,423

Allowance for doubtful accounts

(332)

(333)

Total investments and other assets

10,693

10,04537,311

36,968351,875

357,816

Intangible assets
Investments and other assets

Total noncurrent assets
Total assets–6–

(Millions of yen)
As of June 30, 2009

As of March 31, 2009
(Summary)

74,17877,020Liabilities
Current liabilities
Notes payable, accounts payable forconstruction contracts
Current portion of long-term loans payable

1818

Income taxes payable
Advances received on uncompleted
construction contracts
Provision for warranties for completed
construction

1,980

5,457

92,357

91,661

3,969

3,801

Provision for loss on construction contracts

3,218

4,302

Provision for bonuses

1,778

3,557

Other

13,673

13,398

Total current liabilities

191,174

199,218

Long-term loans payable

10,00410,004

Provision

1,760

2,288

560

388

12,325

12,681

203,499

211,899

Capital stock

43,39643,392

Capital surplus

37,112

37,108Retained earnings

69,887

69,730Noncurrent liabilities

Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity

Treasury stock(1,112)(1,105)

Total shareholders' equity

149,283

149,126

Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

173

(775)

(457)

(1,368)Foreign currency translation adjustment(1,150)(1,469)Total valuation and translation adjustments(1,434)(3,613)527

404

148,376

145,917351,875

357,816

Minority interests
Total net assets
Total liabilities and net assets–7–(2) Consolidated statement of income(Millions of yen)First quarter ended June 30, 2008
(From April 1, 2008
to June 30, 2008)

First quarter ended June 30, 2009
(From April 1, 2009
to June 30, 2009)

Net sales of completed construction contracts

114,347

82,677

Cost of sales of completed construction contracts

110,22176,821Gross profit on completed construction contracts

4,126

5,856

Selling, general and administrative expenses

2,773

2,985

Operating income

1,353

2,870

Interest income1,894

348

Dividends income

57

51

Equity in earnings of affiliates-89271489

Non-operating income

Foreign exchange gains
Real estate rent

64

35

Other

58

69

2,345

1,083

85

61

Total non-operating income
Non-operating expenses
Interest expenses
Equity in losses of affiliates

4-

Rent expenses on real estates

4226

Stock issuance cost

271

-

Other

20

17

Total non-operating expenses

424

105

Ordinary income

3,274

3,848

Income before income taxes and minority
interests

3,274

3,848

Income taxes-current

497

2,081

Income taxes-deferred988(345)

Total income taxes

1,486

1,735

330

1,785

2,081

Minority interests in income
Net income–8–(3) Consolidated statement of cash flows(Millions of yen)First quarter ended June 30, 2008
(From April 1, 2008
to June 30, 2008)

First quarter ended June 30, 2009
(From April 1, 2009
to June 30, 2009)

3,274

3,848

482

507

(1,951)

(399)

5,452

(3,201)(6,866)(3,977)(9,728)(3,565)

Net cash provided by (used in) operating
activities
Income before income taxes and minority
interests
Depreciation and amortization
Interest and dividends income
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in costs on uncompleted
construction contracts
Increase (decrease) in notes and accounts
payable-trade
Increase (decrease) in advances received on
uncompleted construction contracts
Decrease (increase) in jointly controlled assetof joint venture(9,042)602

16,643

3,049

Other, net

7,794

(914)

Subtotal

6,058(4,052)

199

192

Interest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operatingactivities
Net cash provided by (used in) investment
activities
Proceeds from withdrawal of time deposits

(84)

(64)

(1,035)(5,060)5,138(8,984)87-

Purchase of property, plant and equipment

(121)

(227)

Purchase of intangible assets

(351)

(248)

2

(26)

(382)

(502)

Other, net
Net cash provided by (used in) investment
activities
Net cash provided by (used in) financing
activities
Proceeds from issuance of common stock

60,5707

Cash dividends paid

(1,652)(1,678)Cash dividends paid to minority shareholders(10)(7)

Other, net

(9)

(9)

58,897(1,688)

(360)

308

63,292(10,867)

70,089135,536-290

133,382

124,959

Net cash provided by (used in) financing
activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at beginning ofperiod
Increase in cash and cash equivalents fromnewly consolidated subsidiary
Cash and cash equivalents at end of period–9–