Translation

May 13, 2010

Consolidated Financial Results
for the Fiscal Year Ended 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)(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated performance for the fiscal year ended March 31, 2010
(from April 1, 2009 to March 31, 2010)(Percentages indicate year-on-yearchanges.)(1) Consolidated operating results (cumulative)
Net sales
Millions of yen
Fiscal year ended
March 31, 2010
Fiscal year ended
March 31, 2009

Operating income% Millions of yen

Ordinary income
Millions of% yen

Net income% Millions of yen%

312,985 (29.9)

1,702 (76.4)

4,837 (57.7)

2,953 (54.5)

446,438 (26.0)

7,227 (18.2)

11,449 (40.1)

6,498 (32.6)

Net income per Fully diluted net Return on Equity Ratio of Ordinary Ratio of Operating
Income to Total
Income toshare
income per share(ROE)
Assets
Revenue
Yen
Yen%%
Fiscal year ended
11.39
11.39
2.0
1.4
March 31, 2010
Fiscal year ended
25.58
25.58
5.7
3.1
March 31, 2009
Reference: Equity in earnings of associated companies: Fiscal year ended March 31, 2010: 144million yen,
Fiscal year ended March 31, 2009: 137million yen

%
0.5
1.6

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of March 31, 2010

328,174

149,25345.3

573.61

As of March 31, 2009

357,816

145,91740.7

561.12

Reference: Equity

As of March 31, 2009: 148,683 million yen

1

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

(3) Consolidated cash flows
Net cash provided byoperating activities

Net cash used ininvesting activities

Net cash used infinancing activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen

8,613(2,722)(2,079)139,790

8,971(1,072)58,548135,536

Fiscal year ended
March 31, 2010
Fiscal year ended
March 31, 20092.

Cash dividends
Cash dividends per share
Record dateFiscal year ended
March 31, 2009
Fiscal year ended
March 31, 2010
Fiscal year ending
March 31, 2011
(Forecast)

3.

Payment of
Cash
Dividends

Third
Fiscalquarter year-end Annual

PayoutDividend on
Equity Ratio
Ratio(Consolidated) (Consolidated)First
quarter

Secondquarter

Yen

Yen

Yen

Yen

Yen

Millions of
yen

%

%

–

–

–

7.50

7.50

1,944

29.3

1.5

–

–

–

3.50

3.50

907

30.7

0.6

–

–

–

5.00

5.00

32.4

Consolidated earnings forecasts for the fiscal year ending March 31, 2011
(from April 1, 2010 to March 31, 2011)(Percentages indicate year-on-year changes.)
Net sales
Millions ofyenOperating income Ordinary income%

Millions ofyen%Millions ofyen

2Q ending
September 30, 2010

115,000 (30.2)

2,000

–

1,900

Fiscal year ending
March 31, 2011

240,000 (23.3)

6,000 252.5

6,500

4.

Net income pershare

Net income
Millions of
yen

%

Yen

–

1,000

–

3.86

34.4

4,000

35.4

15.43

%

Others(1) Significant changes in subsidiaries during the period (changes in specified subsidiaries
resulting in the change in scope of consolidation): None
(2) 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 financial
statements”)
a. Changes due to revisions to accounting standards: Yes
b. Changes due to other reasons: None

2

(3)

Number of issued shares (common stock)a. Total number of issued shares at the end of the period (including treasury stock)
As of March 31, 2010
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 March 31, 2010
1,117,239 shares
As of March 31, 2009
963,763 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.

35. Results of Operations(1) Analysis of Results
The global economy during the fiscal year ended March 31, 2010 showed some clear signs ofrecovery, which were especially strong in the Asian countries led by China and India. On theother hand, sluggish recovery in European countries continues to exert a negative influence on theeconomic outlook. The situation in Japan remains depressed although the economy has been
improving steadily because of the apparent weakness in the country’s autonomous recovery.
The business environment surrounding the Chiyoda Group was characterized by rising
expectations of winning new contracts as more plans for large scale investments began to takeshape in various regions of the world to meet the future demand for oil and gas. On the other hand,
the group is increasingly more exposed to intense competition from Korean contractors who haveshown remarkable growth in the recent times.
Under these circumstances, the Chiyoda Group received orders for both domestic and overseas
EPC (Engineering, Procurement and Construction) contracts, including a contract to construct an
LNG (liquefied natural gas) plant in Papua New Guinea and multiple basic design works. At thesame time, we diligently continued with the execution of our existing projects and completed threeout of the six trains (each train designed to produce 7.8 million tons per annum) for ultra large scale
LNG plants in Qatar, the first train of which we had already completed in the previous period.
However, the projects’ profitability deteriorated to a large extent due to some leveraging measures
implemented, which included increasing the number of construction workers in an effort tocomplete work on the sixth and seventh trains for the Qatargas LNG plant within the time stipulated
in the contract. In response to these business issues, we endeavored to recover our performanceby practicing thorough risk management, and by improving the profitability of existing contracts aswell as solidly executing the new contracts.
Consequently, new contracts awarded to the Chiyoda Group during this fiscal year increased by
105.0% to 429,393 million yen compared with the previous fiscal year, and the contract backlog
increased by 26.1% to 536,150 million yen. Revenues decreased by 29.9% to 312,985 million yen.
Operating income decreased by 76.4% to 1,702 million yen, and ordinary income decreased by
57.7% to 4,837 million yen. The net income for the period was 2,953 million yen, a 54.5%
decrease from the previous fiscal year.
Results by Business Segment
Natural Gas and Electric PowerThe main overseas contracts newly awarded to the Chiyoda Group included an EPC contract for an
LNG plant in Papua New Guinea, an EPC contract for a gas processing plant in Qatar and thebasic design work for a floating LNG plant in Brazil. Meanwhile, work continued on the constructionof a large scale LNG plant and multiple basic design/investment planning services. Furthermore,
our Qatar subsidiary commenced the work under a long-term EPC service contract for LNG/gas
processing plants, awarded during the previous fiscal year. With these long-term service contracts,
the Chiyoda Group plans to actively promote the plant life-cycle engineering (PLE) business which
the Chiyoda Group has been pursuing for some time.
On the domestic front, The Chiyoda Group was newly awarded contracts including a basic design
work for LNG receiving terminal, while it continued to execute three construction contracts for LNG
receiving terminals in Niigata and Okayama and other existing projects.
Petroleum, Petrochemicals and Gas Chemicals
The Chiyoda Group’s concerted efforts to win oil refinery investment projects in the Middle Eastand the South East Asia regions resulted in receiving orders for an EPC contract in Saudi Arabia
for a heavy oil cracking unit and a basic engineering contract for a desulfurization plant in
Singapore. Our aim is to strengthen our group companies and promote our global operations
through the execution of these projects.

4Domestically, in a market stagnated by shrinking investment plans, the news of realignment in theoil industry and plant shut-downs, we received engineering study contracts for connecting chemicalcomplexes, competitiveness improvement and energy conservation. As for project execution, we
completed the construction of a CCR (continuous catalytic regeneration) unit.
General Chemicals, Industrial Machinery, Environment and Others
We achieved some tangible results in the general chemicals and industrial machinery sectors
through our concentrated efforts in material fabrication facilities for solar-powered generation andother renewable energies, lithium ion batteries, parts and components fabricated with advanced
materials for eco-friendly vehicles, and non-ferrous metal smelting.
In the pharmaceuticals sector, our efforts were directed towards highly active pharmaceuticals suchas antibodies and cancer drugs, which resulted in several orders being received.

(Major contracts included in the consolidated results for the period)(“*”: projects completed during the period.)･LNG plant Trains 6 & 7 for Ras Laffan Liquefied Natural Gas Co., Ltd. (3) in Qatar(*)
･LNG plant Trains 6 & 7 for Qatar Liquefied Gas Co., Ltd. (3) and (4)Overseas ･Al Khaleej Gas Phase 2 project for ExxonMobil Middle East Gas Marketing Ltd. in
Qatar (*)
･LNG plant Trains 4 & 5 for Qatar Liquefied Gas Co., Ltd. (2) in Qatar (*)
･Pearl GTL project feed gas preparation works for Qatar Shell GTL Ltd. in Qatar･Construction of RFCC complex for Taiyo Oil Co., Ltd..
Domestic･Expansion of Mizushima LNG receiving terminal for Mizushima LNG Co., Ltd.

Outlook for the Next Fiscal Year
Chiyoda will continue to promote its sales activities and win contracts in the areas where Chiyoda
can best leverage its technological advantages while continuing to work diligently on the executionof existing projects including the large projects in Qatar, Papua New Guinea and others.
Considering these circumstances, and assuming the exchange rate of ¥90/dollar, our forecasts forthe fiscal year ending March 31, 2011, include 440.0 billion yen in new consolidated contracts and240.0 billion yen in revenues. Our forecast for the consolidated operating profit is 6.0 billion yen,consolidated ordinary income is 6.5 billion yen, and the consolidated net income is 4.0 billion yen.

5(2) Analysis of Financial Condition
1) Assets, Liabilities and Net Assets
AssetsTotal assets decreased by 29,642 million yen from the previous fiscal year. Although the cash
saving increased by 4,255 million yen due to an improved operating cash-flow, the current assets
decreased by 30,128 million yen due to the 3,058 million yen decrease in jointly controlled assetsof joint venture through the progress of large scale joint venture projects in Qatar.
Liabilities
Although there was an increase of 15,372 million yen in the accounts payable for construction, thebalance of advances received on uncompleted projects decreased by 43,493 million yen. This
resulted in a decrease in total liabilities of 32,977 million yen compared to the previous fiscal year.
Net Assets
Net assets were 149,253 million yen as the result of the 1,029 million yen year-on-year increase inretained earnings due to booking net income. The equity ratio increased 4.6 points year-on-year
to 45.3 %.
2) Cash Flow
Cash flow from operating activities
Net cash from the operating activities was 8,613 million yen despite the 21,398 million yen
decrease in working capital (total in notes and accounts receivable-trade, costs on uncompleted
construction contracts, notes and accounts payable-trade and advances received on uncompleted
construction contracts). This was due to the jointly controlled assets of joint venture decreasing by
3,058 million yen according to the progress of large scale JV projects in Qatar, in addition tobooking the income before income taxes and minority interests of 4,714 million yen for the fiscal
year.
Jointly controlled assets of joint venture are shown on the JV balance sheet as the assets
controlled by Chiyoda. In real terms, it is equivalent to the portion of the current deposit balance
under the JV name that is allocated to Chiyoda.
Cash flow from investing activities
Net cash from investing activities was 2,722 million yen in the negative due to 1,864 million yen incapital investment that included software investments.
Cash flow from financing activities
Net cash from financing activities was 2,079 million yen in the negative due to 1,940 million yen
paid in dividends and other factors.
As the result of the factors described above, the account balance for the fiscal year for cash andcash equivalents was 139,790 million yen which was a year-on-year increase of 4,254 million yen.
（＊）The equity ratio for the period ending March 31, 2006, the conventional “shareholders’ equity
ratio” is used.

6

Cash Flow IndicesFiscal years ended
March 31

Equity ratio(%)

Debt repayment
period (Years)

2006
2007
2008
2009

19.8
17.4
21.4
40.7

2.0
0.3
0.7
1.1

Interest coverage
ratio(Times)
17.3
114.4
35.3
26.3

2010

45.3%

1.2

34.5

(Shareholders’ equity Interest-bearing– minority
debt/Net cash
Notes
interests)/Total
provided byassetsoperating activities
Note: The equity ratios for 2006 represent the previous “net asset ratio.”

Net cash provided byoperatingactivities/Interest
expense(3) Dividend Policy
Chiyoda’s basic policy regarding distribution of dividend includes constant consideration for returnon investment for our shareholders and a target payout ratio of 30 % while strengthening thecompany’s financial constitution in preparation for future expansions.
Our planned year-end dividend for this period is set at 3.50 yen per share.
dividend for the next period is 5.00 yen per share.

7

The planned year-end

6. Consolidated financial statements(1) Consolidated balance sheets (1/2)(Millions of yen)

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed
construction contracts
Short-term investment securities
Costs on uncompleted construction contracts
Deferred tax assets
Jointly controlled assets of joint venture
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and vehicles
Accumulated depreciation
Machinery and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

8

As of March 31,
2010

As of March 31,
2009

43,002

38,74751,31850,651

96,841
7,283
15,523
69,9176,834(2)
290,719

96,841
16,9209,872
100,426
7,392(3)
320,848

15,193(7,151)
8,042
592
(266)
326
5,157
(4,063)
1,093

14,752(6,621)
8,130
870
(233)
637
5,010
(3,732)
1,278

11,93848

11,953
1

21,4505,142

22,001
4,921

7,855
1,745
1,594
(333)
10,861

6,955
1,348
2,074
(333)
10,04537,454
328,174

36,968357,816

Consolidated balance sheets (2/2)(Millions of yen)
As of March 31,
2010

As of March 31,
2009

89,52377,020Liabilities
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 construction
Provision for loss on construction contracts
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement benefits
Provision for treatment of PCB waste
Other
Total noncurrent liabilities
Total liabilities

4
4,675
48,16818
5,457
91,661

4,486
4,427
3,252
11,421
165,960

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

10,000
2,105
200
123
532
12,960178,921

10,004
1,606
681
–
388
12,681
211,899

Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity

43,396
37,11270,75943,392
37,10869,730(1,215)150,053(1,105)
149,126

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

102
(156)
(1,315)(1,369)569
149,253
328,174(775)(1,368)(1,469)(3,613)404
145,917357,8169

(2) Consolidated statement of income(Millions of yen)
Fiscal year ended March
31, 2010(From April 1, 2009
to March 31, 2010)

Consolidated statements of income
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
Non-operating income
Interest income
Dividends income
Amortization of negative goodwill
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
Foreign exchange losses
Stock issuance cost
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Reversal of allowance for doubtful accounts
Total extraordinary income
Extraordinary loss
Provision for treatment of PCB waste
Loss on valuation of investment securities
Other
Total extraordinary losses
Income before income taxes and minority
interests
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income
Net income

10

Fiscal year ended
31, 2009

March(From April 1, 2008
to March 31, 2009)

312,985
298,766
14,21912,517
1,702

446,438
427,461
18,977
11,749
7,227

1,044
972

4,454
646

144
1,214
140
199
3,716

137
–
247
127
5,614

249
93
–
–
237
581

340
152
435
271
192
1,392

4,837

11,449

–
–

127
127

123
–

–
1,859

–
123
4,714

65
1,925
9,651

8,532
(6,806)
1,726
34
2,953

7,120
(3,996)
3,123
29
6,498

(3) Consolidated statement of cash flows (1/2)(Millions of yen)
Fiscal year ended March 31, Fiscal year ended
31, 2009
2010

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowance for doubtful
accounts
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Equity in (earnings) losses of affiliates
Loss (gain) on valuation of investment securities
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
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement
benefits
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in provision for loss on
construction contracts
Decrease (increase) in accounts receivable-other
Decrease (increase) in jointly controlled asset of joint
ventureIncrease (decrease) in accrued consumption taxes
Increase (decrease) in deposits received
Increase (decrease) in accrued liability of a defined
contribution pension plan
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

11

March

(From April 1, 2009
to March 31, 2010)(From April 1, 2008
to March 31, 2009)

4,714

9,651

2,059

1,957

(6)

(158)

(2,017)(5,101)

249

340

78

(26)

(144)

(137)

–

1,859

469

(13,859)

9,692

171

12,031

2,772(43,592)(93,209)

(373)

(847)

865

(181)

678

1,754

125

43

455

2,229

30,50892,256

200

424

1

(511)

(800)

(811)

(119)

9,477

15,078

8,094

1,323

1,347

(257)

(398)

(7,531)

(72)

8,613

8,971

Consolidated statement of cash flows (2/2)(Millions of yen)
Fiscal year ended March 31, Fiscal year ended
31, 2009
2010

Net cash provided by (used in) investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Collection of long-term loans receivable
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of common stock
Cash dividends paid
Cash dividends paid to minority shareholders
Repayments of finance lease obligations
Other, net
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 of period
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of period

12

March

(From April 1, 2009
to March 31, 2010)(From April 1, 2008
to March 31, 2009)

(539)

–

539

888

(922)

(563)

3

41

(942)

(1,156)

(535)

(65)

(388)

(215)

51

–

10

0

(2,722)(1,072)–

10,000(18)(10,039)

7

60,577(1,940)(1,920)

(7)

(10)

(11)

(13)

(109)

(46)

(2,079)58,548

152

(999)

3,963

65,447

135,536

70,089290–

139,790

135,536

7.

Production, Contracts and Sales (Consolidated)
Millions of Yen
FY2010
Apr. 1, 2009 —March. 31, 2010
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

267,970
30,403
167
56,14021,68024,16923,812424,344

62.4
7.1
0.0
13.1
5.1
5.6
5.5
98.8

105,424
74,457428
83,87926,061
4,055
13,251
307,558

33.7
23.8
0.2
26.8
8.3
1.3
4.2
98.3

296,265
123,075
584
55,703
16,551
21,85021,624535,655

55.3
22.9
0.1
10.4
3.1
4.1
4.0
99.9

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

5,048

1.2

5,427

1.7

494

0.1

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

97,815331,577
429,393

22.8
77.2
100.0

143,878
169,107
312,985

46.0
54.0
100.0

169,232
366,918
536,150

31.6
68.4
100.0

Millions of Yen
FY2009Apr. 1, 2008 —March. 31, 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

42,84572,160240
53,44525,522
4,032
5,133
203,379

20.5
34.5
0.1
25.5
12.2
1.9
2.4
97.1

192,769
127,007467
74,131
24,232
9,216
12,889440,713

43.2
28.4
0.1
16.6
5.4
2.1
2.9
98.7

137,214
168,936
845
83,45820,862
1,788
11,064424,170

32.3
39.8
0.2
19.6
4.9
0.4
2.6
99.8

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

6,043

2.9

5,724

1.3

873

0.2

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

148,936
60,486
209,422

71.1
28.9
100.0

123,156
323,282
446,438

27.6
72.4
100.0

215,740
209,303
425,043

50.8
49.2
100.0

13