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

The presentation was conducted inJapanese.

Thisdocument

isAugust 8, 2023

aIR, PR & Sustainability Advanced Section

translation/summary for reference only.

Corporate Services Department
Chiyoda Corporation

Summary of a Q&A session following the Presentation of theFirst Quarter Financial Results for Fiscal Year Ending March 31, 2024
The following is a summary of a Q&A session following the presentation (telephone conference) of Chiyoda
Corporation’s (Chiyoda) financial results for the first quarter of fiscal year ending March 31, 2024, releasedon August 2, 2023.
No1

Question

AnswerRevenue
What factors contributed to revenue•achieving 29% of the full year forecast?

Large-scale overseas projects are progressing and
the Group made a robust start in Japan this fiscalyear.

•Revenue was carried over from the previous fiscal
year by materials procurement optimization.

The revenue will progress at the same ratio as theprevious fiscal year after the second quarter, with aproject to be completed.
2Gross profit margin
At 6.5%, why was the gross profit

In the course of improving our risk management

margin below the full year forecast ofstructure, contingencies increased on some energy

7.8%?

projects as we considered potential risks in the project
life base. Increased contingencies were reflected in thefinancial results for the first quarter, however, projects
last for a long period and the full year results illustrate abetter perspective than the quarterly one.

Please specify the contingencies.

Examples are risk allowances for price escalation ofcontinuously procured bulk materials while construction
progresses and volatile shipping costs.

1Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/enNo
3Question

AnswerNew orders forecast
At JPY 34.4 billion, new orders were

The Group is targeting a new order full year forecast of

low in comparison to the full year

JPY 300.0 billion.

forecast of JPY 300.0 billion. Will the•Facility investment appetite is increasing in theGroup achieve the full year forecast?

domestic market with government support. The

What projects are expected?

Group receives many business inquiries, mainly inthe fields of advanced technology, economic
security, decarbonization, pharmaceutical and life
sciences and energy management, such asenergy storage. Most are single tender. We areconfident of achieving domestic new orders of JPY
200.0 billion. The Group has continued to discussorders with clients in the first quarter, despite
prolonged inflation.
•The integrated engineering company CHIYODA XONE Engineering Corporation was established in
April 2023 from the merger of three groupcompanies in Japan to reinforce group integration,and new orders of JPY 50.0 billion are expected.

•The Group receives overseas inquires mainly ingreen/blue hydrogen, ammonia and CCUS
projects which are not ultra large. This fiscal year,
we will work mainly on miscellaneous activities
leading to future orders. We also expect changeorders from clients, contributing to ‘new orders’.

4Business environment
How do you see the LNG business

LNG investment appetite is increasing from expanding

environment developing?

LNG demand, caused by the geopolitical crisis in
Ukraine and recognition of the importance of LNG as atransition energy source.
The Group is accelerating operating resources in newbusinesses to transform its business portfolio and weselect new orders which will leverage on our strengths,
deliberately balancing risks and returns.

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

No5Question

AnswerProfitability
What have the Group achieved inCurrently, large-scale overseas projects and others areprofitability improvement initiatives?

progressing without serious issues. We acknowledge
that this is the result of risk management improvement
and project execution reinforcement because of theinitiatives of the 2019 Revitalization Plan. The Groupwill continue accumulating profit by steadily executing
projects.

6New business fields
Will the Group achieve the targeted The Group aims for ‘FY2030 fifty-fifty profit contribution
fifty-fifty ratio between conventionalratio for existing businesses and new businesses’

business and new business fields?

advocated in the 2021 Revitalization Plan Update.
New business profit contribution ratio has increased
year by year from FY2021, and new orders being
received in new businesses is increasing. The Groupwill steadily accumulate profits in new businesses toachieve the target.

-EndPlease submit inquiries to:
IR, PR & Sustainability Advanced Section, Corporate Services Department
Tel. +81-45-225-7734

Note: Some additions and corrections have been made to simplify the content for readers. Any projections
included in these materials are based solely on information available at the time this presentation wasprepared. It is possible that actual results may vary significantly from the projections due to a number ofrisk factors such as economic conditions. The results projected here should not be construed in any wayas being guaranteed by the Company. Investors are recommended not to depend solely on theseprojections for making investment decisions.

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