Translation

August 8, 2014

Consolidated Financial Results
for the Three Months Ended June 30, 2014
Company name: CHIYODA CORPORATION
Listing:First Section of the Tokyo Stock Exchange
Stock code:
6366
URL:
http://www.chiyoda-corp.com/
Representative: Shogo Shibuya, President & CEO
Inquiries:
Nobuo Sekita, SL, Accounting Section
TEL:+81-45-225-7745 (from overseas)
Scheduled date to file Quarterly Report: August 12, 2014
Preparation of Quarterly Supplementary Explanation Material: Yes
Quarterly Financial Results Presentation Held: Yes (for Analysts and Institutional Investors)(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated performance for the three months ended June 30, 2014

(1) Consolidated operating results
Net sales(Percentages indicate year-on-year changes)
Operating income

Millions ofyen

Millions of% yen

Ordinary income

Millions of% yen

Net income
Millions of% yen

For the three months
87,678 (9.8)
1,135(76.0)
1,714 (68.7)
ended June 30, 2014
For the three months
97,174 32.2
4,736
3.8
5,485
8.7
ended June 30, 2013
Note: Comprehensive Income: the three months ended June 30, 2014: 1,465 million yen / (46.5)%
the three months ended June 30, 2013: 2,736 million yen / 0.2%

Net income per share

For the three months
ended June 30, 2014
For the three months
ended June 30, 2013%
294 (88.7)

2,617

Fully diluted net
income per share

YenYen1.14-

10.10-(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

As of June 30, 2014

482,268

194,761

40.0

As of March 31, 2014

475,288

198,031

41.3

Reference: Equity

As of June 30, 2014: 193,112 million yen

As of March 31, 2014: 196,411 million yen

1(9.5)

2.

Cash dividends
Cash dividends per share
Record date

First quarter

Second quarter

Third quarter

Fiscal year-end

Yen

Yen

Yen-

16.00

16.00

-

16.00

16.00

Yen
Yen
Fiscal year ended
March 31, 2014
Fiscal year ending
March 31, 2015
Fiscal year ending
March 31, 2015
(Forecast)
Note: Revision to the latest forecast announcement 2014: None

3.

AnnualConsolidated earnings forecasts for the fiscal year ending March 31, 2015 (fromApril 1, 2014 to March 31, 2015)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
March 31, 2015

Operating income Ordinary income

Net income pershareNet income

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Yen465,000

4.2

19,000(9.9)

21,000(8.0)

13,5000.4

52.12

Note: Revision to the latest forecast announcement 2014: None

4.

Others(1) Changes in Significant Subsidiaries during the Period (changes in specified subsidiaries
accompanying changes in the scope of consolidation): None
(2) Adoption of Specified Accounting Methods for the Preparation of Quarterly Consolidated FinancialStatements: None(3) Changes in Accounting Policies and Accounting Estimates / Restatements
a. Changes in accounting policies due to revisions of accounting standards, etc.: Yes
b. Changes in accounting policies other than a. above: Nonec. Changes in accounting estimates: None
d. Restatements: None
(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, 2014
260,324,529 shares
As of March 31, 2014
260,324,529 sharesb. Number of treasury stock at the end of the period
As of June 30, 2014
1,313,012 shares
As of March 31, 2014
1,310,312 sharesc. Average number of shares during the period
For the three months ended June 30, 2014
259,012,144 shares
For the three months ended June 30, 2013
259,041,960 shares*Presentation of Implementation Status of Quarterly Review Procedure
The review procedure of quarterly financial statements based on the Financial Instruments and Exchange Law
has not been completed at the time of the disclosure of these Consolidated Financial Statements.
*Proper use of earnings forecasts, and other special directions
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 to be reasonable. Actual
business and other results may differ substantially due to a number of factors.

2

5.
Qualitative Information related to Consolidated Performance
Qualitative Information on Business Performance
During the first three months of this fiscal year, despite the gradual recovery in developed countries,
we saw a global economy that was unable to overcome the uncertainty that exists due to a lull in theactivity in emerging countries and geopolitical concerns such as those in Ukraine, Iraq and Palestine.
However, in the energy field, with which the Chiyoda Group has close links, preparations forinvestment in numerous gas related facilities are being encouraged by the continuing increase inenergy demand, the Shale Revolution and the tide of Gas Shift. The Japanese economy has
gradually recovered from recession, largely due to the measures taken by the government, but therecovery has been affected by the increase in consumption tax.
Faced with these conditions, the Chiyoda Group continued with the planned construction ofnumerous LNG projects throughout the world, including North America where the driving force isshale gas. As we started the second year of our Medium-Term Management Plan, and while theGroup continued to strengthen its core business in the fields of oil and gas, we accelerated ourexpansion into new business fields including offshore and upstream, and renewable energy such as
Photovoltaic and Concentrating Solar Power generation. Additionally, we continued our efforts toestablish a Hydrogen Supply Chain which utilizes Chiyoda’s own technologies.
Execution of ongoing projects continued smoothly, including an LNG plant in Australia, an overseas
project for Japanese clients in Vietnam, refinery projects in Qatar and Venezuela and, in Japan,
LNG receiving terminals and photovoltaic power generation systems.
Consequently, consolidated new contracts for the period amounted to 525,020 million yen (704.6%
increase compared to the same period of the previous fiscal year). The backlog and revenue were1,495,884 million yen (39.5% increase from the end of the previous fiscal year), and 87,678 million
yen (9.8% decrease year on year) respectively. The operating income amounted to 1,135 million
yen (76.0% decrease), ordinary income to 1,714 million yen (68.7% decrease), and net income
resulted in 294 million yen (88.7% decrease).
Backlog further increased due to the new orders mainly for LNG projects. Meanwhile net income
decreased because those new orders have not contributed yet to the current results andunsatisfactory results occurred in certain overseas group companies. From the second quarter on,
we expect further contributions from the large LNG projects awarded in the previous fiscal year.
Therefore we maintain the full year financial forecasts.
Highlights during this period for each segment are summarized hereunder:
LNG Plants/Other Gas Related Works
The Group was awarded an Engineering, Procurement and Construction (EPC) contract for anatural gas liquefaction facility in Russia, an Engineering, Procurement, Construction andInstallation (EPCI) contract for a floating production unit in Indonesia and a Front End Engineering
Design (FEED) contract for an LNG plant in Canada, which will be rolled over to the future project
execution services contract.
The EPC execution of LNG plants in Australia and USA progressed as planned and FEED works for
an LNG plant in Mozambique and a Floating LNG (FLNG) facility in Indonesia were also in progress.
Our Qatari subsidiary has been executing the EPCm works for the maintenance and modification ofexisting LNG and gas processing plants built mainly by the Group. In Japan, several EPC works on
LNG receiving terminals and the expansion/modification works of existing plants were ongoing.
LNG plants and other gas-related works constitute our core business and, in this regard, we willpursue any such project whether onshore/offshore, overseas/domestic or conventional/unconventional.
Petroleum/Petrochemicals/Gas Chemicals
EPC works were ongoing for a refinery and petrochemical complex in Vietnam, a refinery project in
Qatar and an EPsCm work for heavy crude oil upgrading facilities in Venezuela. Additionally, oursubsidiary in Singapore was performing project management services under an Enterprise
Framework Agreement for downstream projects within Asia.
In Japan, we continued to perform the EPC work for a Trans-Alkylation Unit, the diagnosis ofexisting facilities, maintenance and upgrading works, studies and construction works aimed at3

energy saving in the facilities, and studies to fortify the infrastructure of a refinery in the case of apossible catastrophe.
Mining/Mineral Refining/Offshore/General Chemicals/Environment/ Other Fields
The Group, in cooperation with our strategic alliance partner Xodus Group, started providing
integrated services in the offshore/upstream field especially for domestic customers.
We have been operating a demonstration plant in Italy for a Concentrating Solar Power (CSP)
system, and accelerating our efforts to prove this technology in order to develop the business
opportunities for the CSP system, including EPC projects.
The Group was moving forward with the EPC execution of a new international airport in Mongolia
and is preparing bids for further airport and/or railway projects. While we are performing works on ademonstration project for an industrial wastewater treatment/water recycling system in Saudi Arabia,
we have started business development for the EPC works for medium-small sized water treatment
projects in an effort to expand our recycled water-related business into the Middle East, byestablishing a framework in our group company to execute these works.
Meanwhile, we are also responding to the overseas expansion of Japanese clients’ businesses in
non-hydrocarbon fields.
In Japan, we won a number of EPC works for large-scale photovoltaic power generation systems
and are executing and expanding our sales activities by enhancing our group operation in this field.
We are also active in the pharmaceutical field and several EPC works were executed for fluid
infusion facilities, nanotechnology research development facilities in cooperation with industry,government and academia. We were also newly awarded a bio-medicine plant. Furthermore, we arestudying/discussing with the parties concerned (both overseas and domestic), with the aim ofachieving a hydrogen-based society, the establishment of a hydrogen supply chain through ourown-developed technology, by which we will be able to transport and deliver large volumes ofhydrogen.
Note: See Page 9 for more information on New Contracts, Net Sales and Backlog of Contracts bysegment.

46.

Consolidated quarterly financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31,2014

As of June 30,2014

37,86837,59673,005

65,958

107,499

84,99933,82633,701

127,466

161,281

29,433(3)
409,096

31,226(2)414,761

6,862
5,265
2,829

6,762
5,265
2,942

14,958

14,97012,395
7,113
19,50911,872
7,410
19,28328,3153,477(68)

29,6573,664(68)

31,72433,253

66,192475,288

67,507482,268

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts
receivable from completed
construction contracts
Securities
Costs on uncompleted construction
contracts
Jointly controlled assets of joint
ventureOther
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant andequipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and otherassets
Total non-current assets
Total assets

5

(Millions of yen)
As of March 31,2014

As of June 30,2014

145,392

123,691

1,283

1,236

44

5,513

418

80,182

116,778

507

480

4,002

3,226

4,261
20,531
261,679

1,661
22,896
270,394

10,018
365
2,080
3,113
15,578277,257

10,017
365
3,126
3,603
17,112
287,50743,396
37,112
109,525(1,390)188,644

43,396
37,112
105,096(1,393)
184,211

4,920

6,508

648

461

2,486

2,127(287)

(196)

7,767

8,901

1,619
198,031475,288

1,648
194,761
482,268

Liabilities
Current liabilities
Notes payable, accounts payable
for construction contracts
Short-term loans payable
Current portion of long-term loans
payableIncome taxes payable
Advances received on uncompleted
construction contracts
Provision for warranties forcompleted construction
Provision for loss on construction
contracts
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive
incomeValuation difference on availablefor-sale securities
Deferred gains or losses on hedges
Foreign currency translation
adjustment
Remeasurements of defined benefit
plansTotal accumulated othercomprehensive income
Minority interests
Total net assets
Total liabilities and net assets

6(2) Consolidated statement of income and comprehensive income(Consolidated statement of income)(Millions of yen)Three months ended Three months ended
June 30, 2013
June 30, 2014

Net sales of completed construction contracts

97,17487,678

Cost of sales of completed construction contracts

88,24380,640Gross profit on completed construction contracts

8,930

7,037

Selling, general and administrative expenses

4,194

5,901

Operating income

4,736

1,135

Interest income

359

310

Dividend income
Share of profit of entities accounted for using equity
methodOther767

585

7－

1739

1,150

936

51

60

Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange losses

－63

280

201

Other

70

31

Total non-operating expenses

402

357

5,485

1,714

Retirement benefit expenses

161－

Total extraordinary losses

161

－

5,323

1,714

Income taxes - current

772

550

Income taxes - deferred

1,942

816

Total income taxes

2,715

1,366

Income before minority interests

2,608

347

Minority interests in income (loss)

(9)

52

2,617

294

Ordinary income
Extraordinary losses

Income before income taxes and minority interests

Net income7

(Consolidated statement of comprehensive income)(Millions of yen)Three months ended Three months ended
June 30, 2013
June 30, 2014

Income before minority interests

2,608

347

Valuation difference on available-for-sale securities

144

1,588

Deferred gains or losses on hedges

(900)

(186)

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

890(349)－90(5)

(25)

128

1,117

2,736

1,465

2,668

1,428

67

36

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to minority
interests

8

7.

Production, Contracts and Sales
Millions of yen
Apr. 1, 2014 —Jun. 30, 2014

Apr. 1, 2013 —Jun. 30, 2013
New contracts(ratio)Net sales(ratio)Backlog ofcontracts(ratio)New contracts(ratio)Net sales(ratio)Backlog ofcontracts(ratio)64,09698.2%

96,17399.0%

877,64299.9%

523,689
99.7%

86,44598.6%

1,495,477
100.0%LNG Plants

5,266
8.1%

40,77142.0%

478,09054.4%

469,283
89.4%

37,36342.6%

1,177,749
78.7%

Other Gas Related Works

1,130
1.7%

10,52210.8%

45,347
5.2%

23,877
4.5%

8,970
10.2%

34,971
2.4%

Petroleum/Petrochemicals/
Gas Chemicals
Mining/ Mineral
Refining/Offshore
General chemicals/Industrial Facilities
Environment/New Energy/
Infrastructure

13,06020.0%

12,442
12.8%

223,106
25.4%

17,306
3.3%

21,32624.3%

196,627
13.2%

50
0.1%

1,340
1.4%

2,731
0.3%

362
0.1%

15
0.0%

459
0.0%

9,989
15.3%

28,43529.3%

75,101
8.5%

8,514
1.6%

12,067
13.8%

39,3782.6%

28,021
42.9%

2,382
2.4%

46,342
5.3%

3,611
0.7%

5,787
6.6%

42,950
2.9%

6,578
10.1%

278
0.3%

6,922
0.8%

734
0.1%

913
1.1%

3,338
0.2%

1,151
1.8%

1,000
1.0%

537
0.1%

1,331
0.3%

1,232
1.4%

407
0.0%

Total

65,248100.0%

97,174100.0%

878,179
100.0%

525,020100.0%

87,678100.0%

1,495,884
100.0%

Domestic

31,87348.8%

26,59327.4%

132,898
15.1%

24,686
4.7%

30,101
34.3%

97,646
6.5%

Overseas

33,37451.2%

70,581
72.6%

745,28184.9%

500,334
95.3%

57,57665.7%

1,398,238
93.5%

Engineering

OthersOther BusinessNote: The backlog of contracts for the three months ended June 30, 2014 includes a decrease due to changes
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