CHIYODA CORPORATION
Consolidated Financial Results
for the Year Ended March 31, 2005

This document has been prepared as a guide to non-Japanese investors and contains forwardlooking statements that are based on managements’ estimates, assumptions and projections at
the time of publication. A number of factors could cause actual results to differ materially fromexpectations. This document is a translation of excerpts taken from the Japanese language
original. All numbers are rounded down to the nearest unit in accordance with standard Japanesepractice. Please be advised that the Company cannot accept responsibility for investment
decisions made based on the information contained in this report.

1Summary of Financial Statements (Consolidated)
for the Year Ended March 31, 2005

Listed Exchanges
Head Office
Stock CodePresident & CEO
Inquiries
Telephone
U.S. GAAP Accounting Principles

Tokyo
Kanagawa, Japan
6366
Nobuo Seki
Shinji Kusunoki, General Manager, Accounting Department+81-45-506-9410
Not adopted

Consolidated Business Results
for the Year Ended March 31, 2005

1) Consolidated Business Results
Millions of Yen
Apr. 1, 2004–
Mar. 31, 2005

Apr. 1, 2003 –Mar. 31, 2004

Change(%)

Construction Contracts .......................
Operating Profit..................................
Ordinary Profit ...................................
Net Profit............................................
Net Profit per Share (¥)......................
Fully Diluted Net Profit per Share (¥)
Return on Equity (ROE)
Ratio of Ordinary Profit to Total Assets
Ratio of Ordinary Profit toConstruction Contracts

267,655
11,077
11,587
12,863
68.62
67.30
43.1
7.1%

Change(%)

29.4
88.4
82.5
93.5

4.3%

206,816
5,881
6,348
6,646
35.91
34.99
33.7%
4.8%

24.3
279.8
165.2
232.5

3.1%

(Notes) (1) Gain from investments in subsidiaries and affiliates accounted for by the equity method:Year ended March 31, 2005:
0152 million yen
Year ended March 31, 2004:
155 million yen(2) Average number of outstanding shares (consolidated) during the period:
Year ended March 31, 2005:
187,450,203 sharesYear ended March 31, 2004:
185,100,716 shares(3) Changes to accounting principles:
Yes
Please refer to page 23 and 24.
(4) Percentages for construction contracts, operating profit, ordinary profit and net profit represent year-on-yearchanges.

2) Changes in Consolidated Financial Position
Millions of Yen
Apr. 1, 2004–
Mar. 31, 2005
Total Assets
Shareholders’ Equity
Equity Ratio
Shareholders’ Equity per Share (¥)(Notes) Outstanding shares (consolidated) at the end of the period:
Year ended March 31, 2005:
Year ended March 31, 2004:

182,893
36,87320.2%
193.22

Apr. 1, 2003–
Mar. 31, 2004
142,859
22,76615.9%
123.04

190,837,167 shares
185,040,675 shares23) Consolidated Cash Flows
Millions of Yen
Apr. 1, 2004–
Apr. 1, 2003 –Mar. 31, 2005
Mar. 31, 2004
Net cash provided by operating activities...............

484

15,580Net cash used in investing activities .. ...................

(1,006)(1,277)

Net cash provided by (used in) financing
activities......................... ………………………

1,169(8,254)

Cash and cash equivalents at end of period............

41,59440,902

4) Consolidated Subsidiaries and Affiliates Accounted forby the Equity Method
Number of consolidated subsidiaries:
Number of non-consolidated subsidiaries accounted forby the equity method:
Number of affiliates accounted for by the equity method:

18055) Changes in the Scope of Consolidation and Affiliates Accounted for by
the Equity Method
Consolidated subsidiaries:
Newly included
ExcludedAffiliates accounted for by the equity method:
Newly included
Excluded02
00

Consolidated Operations Forecast
for the Year Ending March 31, 2006
Millions of Yen
Apr. 1, 2005 – Mar. 31, 2006
InterimFull term
periodConstruction Contracts..................................................................

150,000

310,000

Ordinary Profit ..............................................................................

6,000

14,000Net Profit ......................................................................................

6,500

14,500(Note) Projected net income per share for the year ending March 31, 2006

75. 98 yen

3(1) State of the GroupThe Chiyoda Group of Companies consists of the parent company, 18 subsidiaries, and 5 equity method affiliates.
As a comprehensive engineering services organization, the Group’s central business is its expertise in providing themost efficient solutions based on an accurate understanding of customer needs. By using highly advanced
technologies and achieving the optimal combination of the project execution skills of group companies, all groupmembers work in unison to conduct business operations. Through this approach, the Group responds flexibly to theneeds of today’s markets, society and regions. The Group’s business is divided into Engineering Businesses andOther Businesses, and the Group’s structure is outlined below.

Business Flowchart
Clients

Chiyoda Corporation
Comprehensive engineering business,
including consulting, planning,
designing, procurement, construction,
trial operation, maintenance and otherservices, for plants of all types

Engineering, Construction & Maintenance*1 Chiyoda Kosho Co., Ltd.
Plant engineering, construction, and maintenanceof energy and chemical plants*1 Chiyoda Techno Ace Co., Ltd.
Engineering and construction of pharmaceuticalfactories, laboratories, and research centers*1 Chiyoda Keiso Co., Ltd.
Construction related to facilities for industries of all
types
Consulting*1 U-Tech Consulting Co., Ltd.
Consulting for industrial and social, regional
development

Advanced Engineering*1 Chiyoda Advanced Solutions Corporation
Computer aided engineering analysis, plant life
cycle engineering and risk management, utilizationof space environment, etc.

Overseas construction bases*1 C&E Corporation (Philippines)*2 L&T Chiyoda Ltd. (India)
Global Engineering Satellites (GESs)*1 Chiyoda Singapore (Pte) Limited*1 PT. Chiyoda International Indonesia*1 Chiyoda (Thailand) Limited*1 Chiyoda Malaysia Sdn. Bhd.
*1 Chiyoda & Public Works Co., Ltd. (Myanmar)*2 Chiyoda Petrostar Ltd. (Saudi Arabia)
Overseas design bases

Other businesses

Finance, Accounting, Tax*1 Arrow Business Consulting Corporation
Consulting services for finance and accounting

Airfreight and Spare Parts Supply*1 Arrowhead International Corporation
Travel and air cargo agent, spare parts supply

Information System Development*2 IT Engineering Limited
IT solutions and software development

Human Resources Staffing and Training*2 Arrow Mates Co., Ltd.
Staffing of human resources

Overseas Accounting and Finance*1 Chiyoda Asia Pacific (Pte) Limited (Singapore)Consulting on accounting and finance*1： Consolidated subsidiary*2： Affiliated company accounted for by
the equity method
Direct Client Orders
Contracted Business, Entrusted
Businesses

Overseas sales bases*1 Chiyoda International Corporation (USA)*1 Chiyoda Nigeria Limited4

(2) Management Policies
1. Basic Management Policies
The Chiyoda Group has formulated, and on February 17, 2005 announced, a medium-term management plan called“Double Step-Up Plan 2008” (DSP2008). The goal of the plan, which starts in fiscal 2005 (ends in March 2006) andends in fiscal 2008 (ends in March 2009) is to enable the Group to consistently increase earnings.
The fundamental management policy is to achieve the targets of DSP2008 in order to achieve further gains incorporate value.
Management philosophy
The Chiyoda Group aims to conduct group management so as to earn the trust and understanding of shareholders,customers, suppliers, employees, communities and all other stakeholders.

Corporate Philosophy
As a comprehensive engineering services organization, the Group’s most important
objectives are to promote its business and to contribute to the sustainable development of asociety by sound application of its know-how and state-of-the-art technology.

Management Policies
Steadfast implementation of
Double Step-Up Plan (DSP) 2008

Quality management policy

Occupational health andsafety policy

Environmental policy

Information security policy

Code of business conduct

Privacy policy

2. Management Vision and Medium-Term Management Strategies

M e d iu m - T e rm M a n a g e m e n t P la n
D o u b le S te p - U p P la n (D S P ) 2 0 0 8
M a n a g e m e n t V is io n
M a n a g e m e n t V is io n
• S te p u p to b e c o m e t h e R e lia b ilit y N o .1 P r o je c t
Com pany .
• S t e p u p t o b e c o m e a n E x c e lle n t C o m p a n y a b le tos u s t a ine a r n in g s g r o w th .
M e d iu m - T e r m M a n a g e m e n t
M e d iu m - T e r m SMt raante
a ggeie
mse n tS ttr
r a t e g ie s
S1

S2
S3

S4

C o n d u c t b u s in e s s o p e r a tio n s b a s e d o n s u p e r io r
te c h n o lo g ie s , e s ta b lis h in g r e la tio n s h ip s a s ah ig h ly tr u s te d p a r tn e r fo r o u r c lie n ts .
F u r th e r u p g r a d e p r o je c t e x e c u tio n s k ills th r o u g h S m a r t
E P C th a t u tiliz e s th e G r o u p ’s c o lle c tiv e s tr e n g th s .
E s ta b lis h a c o n s is te n tly s o u n d fin a n c ia l p o s itio n a b le tos u p p o r t th e c r e a tio n o f n e x t- g e n e r a tio n b u s in e s s e s th a t
c a n s u s ta in e a r n in g s g r o w th .
C r e a te a n e n e r g e tic o r g a n iz a tio n a n d r e fin e e m p lo y e es k ills to p r o v id e a p le a s a n t a n d r e w a r d in g w o r k p la c e .

P la c e p r io r ity o n C o r p o r a te S o c ia l R e s p o n s ib ility ( C S R ) p r o g r a m s

5There are two fundamental elements of DSP 2008. The first is to resolutely retain the innovative thinking needed to“capitalize on change, and take on challenges posed by change” with the aim of becoming “the Reliability No.1
Project Company.” The second is to aim to become “an Excellent Company that can increase earnings” throughconstant internal efforts.
In accordance with the above fundamental approaches, the Group has established medium- and long-term
strategies. All Group employees from senior management on down are working as one to achieve management
goals. To reach these goals, balance scorecards are used to facilitate comprehensive management of key targets foreach strategy, action plans and the status of progress toward goals.
3. Targeted Performance Indicators
The management goal of DSP 2008 is to raise the return on equity to at least 30% by fiscal 2008 (ends in March2009). The Group aims to further strengthen profitability through its own efforts and establish a permanently soundfinancial structure that can support the creation of next-generation businesses.
4. Fundamental Policy for Earnings Distributions
The Group has finally established a base capable of returning earnings to shareholders by eliminating its
accumulated loss in fiscal 2004. Accordingly, the Group plans to pay a dividend of 6 yen per share. The Group plansto pay a consistent and stable dividend while increasing retained earnings to support the Group’s continuous growthand improving employee remuneration based on operating results. The goal is to pay a dividend of at least 10 yen
per share by fiscal 2008, the final year of DSP 2008.
5. Policy and Thinking Regarding Reduction in Investment Unit
The Group regards a change in the stock investment unit as an effective means of adding vitality to capital markets,and thus as an important management issue. Such actions will be taken based on a comprehensive evaluation ofstock market trends, changes in Chiyoda’s investment unit and other items.
6. Important Management Issues
Due to growth in the market for natural gas development, including LNG, activity is strong in the industrial plant
market. Customers are demanding plants that are larger, able to perform more complex operations and have better
reliability. The Chiyoda Group is now executing DSP 2008 as planned for the purpose of responding accurately tothe demands of customers.
Measures to deal with business risk and other risks are explained later. The Group is taking actions to minimize theimpact of risks by thoroughly analyzing all risks, including the sharp increase in the price of basic materials and otheritems, and exhaustively managing procurement methods, contract terms and other items.
7. Measures Concerning Corporate Governance1) Fundamental thinking concerning Corporate Governance
The Group places priority on fulfilling its obligations as a corporate citizen, viewing Corporate Social
Responsibility (CSR) management that can earn the trust and understanding of shareholders, customers and allother stakeholders as the basis for all corporate activities. The Group manages operations in a transparent andsound manner, maintains a system of fair internal checks that is appropriately operated, discloses suitable
information at the proper time, and takes other steps to enhance Corporate Governance. In this manner, theGroup strives to conduct CSR-oriented management.

62) Status of initiatives concerning Corporate Governancei) Corporate Governance framework (enhancement of internal audit system)
The Group has newly established CSR Division and Operational Auditing Office for the purposes of enhancing thequality and transparency of management, better responding to the needs of stakeholders, complying with all laws
and regulations, and strengthening risk management functions. Along with SQE Division (for workplace safety
and hygiene and product quality management), there is an internal audit framework that is directly linked to
management, thereby providing for the strengthening of this function.

Corporate Governance Structure
Stockholders’ Meeting

Corporate Auditors

Board of Directors

Corporate Auditors Committee

Executive Committee
Internal
control thru
PDCA cycle

Crisis Managers
SQE Division
Occupational safety andhealth, quality, environment
Operational Auditing Office

CSR Division
Compliance, social andenvironmental activities,
information security management

P(lan)D(o)C(heck)A(ct)Operations audit, internal control,enhancement of systems, export
control
Corporate Administration
Executive Officers
Risk Managers

Internal Checks and Balances

Project Operations
Executive Officers
Risk Managers

Self Auditingii) Measures to enhance Corporate Governance and actions during the past year
The Chiyoda Group has taken many actions to enhance Corporate Governance and achieve other goals for the
purposes of clarifying the Group’s management philosophy and making qualitative improvements in its CSRoriented management.
(1) Execution of duties by directors, Executive Committee and executive officers
The Company has adopted the corporate auditor system and the executive officer system, under which the Boardof Directors supervises the execution of business activities by the executive officers. By separating the functionsof business execution and supervision, this framework strengthens management functions.
Regarding the execution of business activities, the Company has an Executive Committee made up ofrepresentative directors, and that serves as a preliminary deliberative body for the Board of Directors. Thisfacilitates reaching accurate decisions with in response to rapid changes in the social and economic environment.
Decisions involving the execution of business activities require unanimous approval of the committee. The
corporate auditors attend meetings of the Executive Committee, stating their opinions as necessary. This systemprovides for a quick, transparent decision-making process.
The daily execution of business activities in accordance with decisions made by the Board of Directors andExecutive Committee is entrusted by the board to the executive officers. These officers perform their duties while
communicating as required with consulting attorneys and other external parties. The executive officers submit
reports on their activities as required at meetings of the Board of Executive Officers, which are attended bydirectors and corporate auditors, and the Executive Committee.

7During the past fiscal year, the Board of Directors met 13 times (deliberating on 45 subjects) and the Executive
Committee met 54 times (deliberating on 130 subjects, and examining 54 proposals). These two bodies debatedand reached decisions regarding fundamental management policies, legally prescribed items and other importantmanagement issues. The two bodies also supervised the execution of business activities, confirmed progress
made with regard to management plans, and performed other duties. Total annual compensation paid to all
directors was 150 million yen.
(2) Audits by the corporate auditors (Board)
The four corporate auditors, who meet the conditions for outside corporate auditors as provided for in Paragraph
1, Article 18 of the Law Concerning Special Measures Under the Commercial Code with Respect to Audit, etc., of
Corporations (Kabushiki-kaisha), and the auditing company perform audits of the performance of duties by the
directors and executive officers, determine resolutions submitted to the shareholders meeting concerning theelection, dismissal and other matters concerning the financial auditor, demand a halt to illegal actions, audit
consolidated financial statements, prepare audit reports and perform other duties.
During the past fiscal year, the Board of Auditors met 12 times (11 regular meetings and one extraordinary
meeting). The corporate auditors (Board) and financial auditor maintain close coordination. The financial auditors
submitted an annual audit plan, interim and fiscal year financial statements to the corporate auditors.
Remuneration paid to the financial auditor was 45 million yen(3) Financial Audit by Auditors
Names of engagement partners and the auditing firm who performed the audit:
Engagement partner

Auditing firm

Kazuo Ishibashi

Deloitte Touche Tohmatsu

Hiroki Kitakata

Deloitte Touche Tohmatsu

Engagement partner Kazuo Ishibashi has audited Chiyoda for 9 years.
Assistants involved in accounting audit (10): 5 certified public accountants, 3 assistant accountants and two otherindividuals
Remuneration paid for audits to auditors for the current fiscal year: 63 million yen
Breakdown of fees paid for audits etc.
Fees for legally prescribed audits

57 million yen (of which, applicable to the Company: 44 million
yen, subsidiaries: 12 million yen)

Fees for other services

6 million yen(4) Risk management system
The Group has established risk management and crisis management systems to deal with risks and crises, and arisk managers and crisis managers have been appointed. This provides an effective system for the constantoversight of preventive measures and, in the event of an incident, a proper response along with measures tominimize losses.
(5) Promotion of CSR management
For the purpose of conducting CSR management in a manner that is integrated with corporate-level management,
the Chiyoda Group has created a new management framework incorporating CSR Division (established in April2005), Compliance Management Office, Social Environment Office (established in April 2005), and Information
Security Management Office.
With regard to compliance, the Group ensures strict adherence to laws and regulations in Japan and overseas,international rules and internal rules, and the corporate code of conduct to ensure that business activities areconform to social standards. Furthermore, handbooks providing behavior guidelines and other information
concerning compliance and information security are made available to Group executives and employees on a realtime basis by using internal groupware.
Regarding environmental management, the Company in March 2001 became the first Japanese company
specializing in engineering services to earn ISO14001 and JIS Q 14001 certification. The Group remains firmly
committed to environmental management.
Regarding information security management, the Chiyoda Information Security Management System, which
conforms to BS7799-Part II (2002) (an international standard prescribed by the UKAS for information security
management systems), provides a clearly defined and organizational system for protecting and handling thevarious information resources that represent the nucleus of the Group’s operations. In April 2005, the Group
formulated a “Personal Information Protection Policy” and “Personal Information Protection Regulations” inresponse to the full-scale enactment of Japan’s Personal Information Protection Law, thereby establishing apersonal information protection framework at the group level.

8(6) A rigorous SQE program
Preserving the enhancing the safety and health of everyone who works at the Group is the basis for future growth
and a major premise for the construction of plants that can achieve a high degree of customer satisfaction. The
Group takes suitable actions to train all employees in order to prevent accidents and fires. In this manner, theGroup is constantly conducting programs aimed at preserving and improving workplace safety and hygiene.
With regard to occupational safety and hygiene, the Group has management systems that conform to OHSAS
18001 (standards for workplace safety and hygiene management systems established by an international
consortium including the British Standards Institute, Japan Industrial Standards and similar organizations of othercountries), the de facto world standard, and the standards announced by the Japanese Ministry of Health, Labourand Welfare. In fiscal 2004, the Group had an excellent safety record.
Regarding the quality management system, the Company has retained ISO9001 and JIS Q 9001 certification
since 1994.
(7) Strengthening systems for internal checks and internal audits
In addition to conducting self-assessments of the status of existing internal checks, the Group in April 2005
established the Business Auditing Office to evaluate daily business activities from a neutral perspective in order tostrengthen the system of internal checks. The primary function of the office is to conduct audits to verify that theoverall structure of internal checks as well as all individual components are in place and being used. Audit reports
are submitted to the Executive Committee.
When conducting internal audits, the Group aims to establish an integrated internal checking framework andoperate a system for real-time monitoring by senior executives, thereby ensuring the transparency of information
handled by internal auditing departments. Through reviews of all procedures and enhancement of internal
systems through constant measures to achieve improvements, including in making documents more easily
understandable, the Group plans to raise the transparency of its management.
To prevent internal transactions, an information management system that includes group companies has been
established. By providing for a framework in which all important Group information is reported in a timely andproper manner to the Board of Directors and Executive Committee, the Group enables senior executives tomonitor and manage information that can have a material effect on investment decisions. This provides abusiness execution framework that facilitates the timely and proper disclosure of such information.
During the past fiscal year, the Group disclosed information concerning operations to shareholders in a speedy
and accurate manner through earnings announcement meetings, supplying more information through theinvestor relations section of its web site, and by other means. In addition, in accordance with disclosure
regulations of the Tokyo Stock Exchange, a Group representative in February 2005 submitted an “OathConcerning Timely Disclosure” in writing. Regarding the “Confirmation of Suitability of MOF Securities Report andother documents,” the Group has a system under which, when this confirmation of suitability is submitted,
business division confirmation documents are submitted by the directors responsible for each division and theCEOs of all group companies to the Company’s president and representative director. By verifying that there are
no fraudulent entries in reports and that no information is missing, the Company ensures that the confirmation ofsuitability has been properly prepared.
(8) Audits of individual projects
Operating divisions perform self-assessments of the risks and profitability of individual projects. In addition, adouble-check is performed by a corporate administration division to provide an internal checking function,
thereby enhancing the transparency of management.
This system is part of the process to ensure the rigorous application of the proper business cycle (plan,
implement, confirm by management, execute countermeasures). Managers can confirm that divisions areproperly monitoring activities and that the system of internal checks is functioning properly.
Beginning in the fiscal year that ended in March 2004, professional auditors from corporate administration havebeen conducting “project audits,” which entail examining the suitability of project execution plans formulated byoperating divisions. This is aimed at further enhancing the transparency of management transparency andstrengthening internal checks.
iii) Personal, financial, business and other relationships with outside corporate auditors
The Company has four outside auditors: a former managing director of The Bank of Tokyo-Mitsubishi, Ltd., aformer associate director of The Mitsubishi Trust and Banking Corp., a former executive officer of Mitsubishi
Corporation, and an attorney. Regarding significant relationships, the Bank of Tokyo-Mitsubishi and Mitsubishi
Trust and Banking are both major shareholders of the Company and providers of financial services. Mitsubishi
Corporation is a major shareholder and business partner.
8. Items concerning parent company
Chiyoda has no parent company.

9(3) Results of Operations and Financial Condition
1. Consolidated Operating Results for the Year Ended March 31, 2005
During the past fiscal year, Japan’s economy staged a gradual recovery backed by a big improvement in corporate
earnings and continued growth in capital investment. Overseas, the global economy steadily recovered as the U.S.
economy remained healthy and rapid economic growth continued in China.
With regard to the global plant market, the price of crude oil rose to a record high as global energy demand
increased, and the price of natural gas remained high as well. Due in part to the implementation of the Kyoto
Protocol to prevent global warming, there was an increase in the public’s interest in natural gas, which has a low
environmental impact. The result is a large volume of investments by gas-producing nations and the energy majors
in natural gas development, production, liquefaction and transport. These investments are occurring in Asia, theMiddle East, Africa and other gas-producing regions as well as in energy consuming nations like the U.S., India andChina. As the cost of crude oil skyrocketed, the price of naphtha, the feedstock for ethylene, also climbed. Since
global demand for ethylene continues to grow, the price of ethylene is holding steady at an extremely high level. In
this environment, the Chiyoda Group, which has considerable experience in ethylene and its derivative products,
recorded a strong performance in the oil and chemical plant markets.
Due to these factors, consolidated new contracts were 411,292 million yen, 41.5% higher than in the prior fiscal year.
This was far higher than the Group’s new contract forecast the fiscal year. New contracts in Japan totaled 89,496
million yen, up 24.3%, and overseas new contracts were 321,796 million yen, up 47.2%.

New Contracts
Billions of Yen
600

522.4

500
411.2

375.8

400

321.7

316.1
300
200
100

246.1
180.4 249.0

164.2
128.0
58.3

218.6

290.6

217.9

139.4

81.1

89.9

March, 2001

March, 2002

Domestic

Overseas

68.6

71.9

March, 2003

March, 2004

89.4

0March, 2005

Backlog of Contracts

Construction contracts increased 29.4% to ¥267,655 million, exceeding the forecast for the fiscal year. This
accomplishment was mainly a reflection of steady progress in the construction of ongoing projects and strong
performances by group companies in Japan. Construction contracts totaled 89,612 million yen in Japan, up 41.4%,
and 178,043 million yen overseas, up 24.1%.
Regarding earnings, gross profit on completed construction contracts rose 40.0% to 19,749 million yen due togrowth in the volume of construction contracts and an improvement in gross margin on these contracts. In addition,
selling, general and administrative expenses continued to decline relative to sales. The result was operating incomeof 11,077 million yen, up 88.4%. Ordinary profit increased 82.5% to 11,587 million yen due to higher interest anddividend income and other items. Net profit rose 93.5% to 12,863 million yen. Both ordinary profit and net income
surpassed forecasts for the fiscal year.

10Consolidated Results of Operations – Four-year Summary
Billions of Yen

2001
2002
2003
2004

128.6
141.5
166.3
206.8

Gross profit on
projects
completed
(2.5)
4.6
10.4
14.1

2005

267.6

19.7

Fiscal year ended
March 31

Construction
contracts

Operating profit

Ordinary profit

Net profit(13.8)
(5.1)
1.5
5.8

(13.3)
(3.3)
2.3
6.3

(4.6)
0.1
1.9
6.6

11.0

11.5

12.8

On a non-consolidated basis, new contracts were up 50.4% to 368,290 million yen, which exceeded the fiscal year
forecast. Domestic new contracts increased 30.1% to 57,602 million yen and overseas new contracts were up
54.9% to 310,688 million yen.
Construction contracts increased 31.8% to 223,809 million yen, meeting the target for the fiscal year. Domestic
construction contracts rose 52.6% to 58,507 million yen and overseas construction contracts increased 25.7% to165,302 million yen.
Regarding earnings, gross profit on construction contracts increased 59.0% to 15,134 million yen, mainly the result ofgrowth in construction contracts and a 1.15 point improvement in the gross profit rate. The higher gross profit alongwith further progress in holding down selling, general and administrative expenses resulted in operating profit of 8,744
million yen, up 137.0%. Ordinary profit increased 129.3% to 9,194 million yen, partly due to lower interest expenses
because of a reduction in interest-bearing debt. After inclusion of a gain on the reversal of the allowance for doubtful
accounts due to the recovery of long-term delinquent receivables, net income totaled 11,877 million yen, up 179.1%.
Both ordinary profit and net profit were higher than the targets for the fiscal year.
Results by Business Segment
The following is a summary of operating results by business segments.
Natural Gas & Electric Power
Overseas, global growth in demand for natural gas fueled substantial investments by gas-producing nations andlarge energy companies in gas development projects. The U.S., the world’s largest energy consumer, is certain toraise LNG imports because domestic gas and imports from Canada can no longer meet the nation’s growing demand.
The U.K., where domestic gas reserves are declining, has switched to a net importer of natural gas. In Asia, India
has joined the ranks of LNG importers that already include Japan, South Korea and Taiwan. China is expected to
begin importing LNG sooner than had been expected. Due to these trends, there is no doubt that demand for LNG
will remain strong.
In Japan, deregulation is tending to hold down large-scale capital expenditures for power generation facilities. At
the same time, companies are using a greater diversity of energy sources, such as by shifting to natural gas, due toenvironmental considerations. There are also many new and expanded facilities in response to the removal ofboundaries that separated the electricity and gas utility industries. Moreover, demand is emerging for plant lifecycle
engineering projects that optimize a plant’s production expenses over many years.
Natural gas & electric power consolidated new contracts totaled 305,594 million yen, up 43.6%, and construction
contracts increased 68.7% to 162,507 million yen.
Major new contractsz
LNG plant Train 4 & 5 of Qatar Liquefied Gas Company Limited (II) in Qatarz
LNG plant Train 5 for Ras Laffan Liquefied Natural Gas in Qatarz
FEED for the LNG plant Train 6 & 7 of Qatargas 3z
FEED for the LNG plant Train 6 & 7 of Ras Laffan Liquefied Natural Gas III in Qatar
Major completions (*) completed portionz
Sakhalin II LNG project in Russia (*)
z
LNG plant Train 4 & 5 for Ras Laffan Liquefied Natural Gas in Qatar (*)
z
LNG plant in Oman (*)
z
Gas development project additional work for ExxonMobil in Qatar (*)
z
Mizushima LNG terminal (*)
z
Natural gas development in Indonesia (*)
z
LPG storage terminals in Kamisu, Fukushima and Namikata (*)

Gas Chemicals
There are many large-scale ethylene centers being planned, mainly by the energy majors, that will use inexpensivegas feedstock. These facilities are to be constructed in Saudi Arabia, Qatar, Iran and other Middle East nations,11

China, and Singapore. During the past fiscal year, new contracts were up 206.7% to 13,884 million yen andconstruction contracts fell 61.6% to 14,678 million yen.
Major new contractsz
Ethylene plant expansion in Saudi Arabia
Major completions (*) completed portionz
Fertilizer plant in Iran (*)
z
Methanol plant in Saudi Arabia

Petroleum & Petrochemicals
In the petroleum sector, there were solid investments by Japanese oil companies, primarily for petrochemicalrelated projects and projects to conserve energy. Chiyoda completed on schedule a facility that removes sulfur fromgasoline and kerosene to protect the environment and there was sales growth from maintenance projects
performed by Group companies in Japan.
In the petrochemical sector, Japanese petrochemical companies continued to construct plants in China andelsewhere in Asia to make products sold to automobile and home appliance manufacturers more competitive.
New contracts totaled 52,227 million yen, up 16.0%, and construction contracts rose 48.7% to 57,018 million yen.
Major new contractszLube oil/grease mixing and filling plant for Nippon Petroleum Refiningz
Mixed xylene plant and refinery maintenance for Seibu OilzTank terminal in SingaporezEthylene cracker for Mitsubishi Chemical Engineering and Mitsubishi Chemical
Major completionsz
Expansion of Puerto La Cruz refinery in VenezuelazUltra low sulfur gasoline project for Showa Yokkaichi Sekiyu and Seibu Oilz
Maintenance project for TOA Oilz
Gasoline desulfurization plant for Idemitsu Kosan

General Chemicals & Industrial Machinery
In the chemicals sector, the scale of the market remained stable despite a brief upturn in capital expenditurescaused by mergers of Japanese pharmaceuticals companies to become more globally competitive and the rapid
entry in Japan of foreign pharmaceutical companies. In this environment, there was growth in the outsourcing ofengineering work and an increase in outsourced manufacturing resulting from amendments to Japan’s
Pharmaceuticals Affairs Law.
New contracts totaled 29,026 million yen, up 59.8%, and construction contracts increased 32.6% to 21,791 million
yen.
Major new contractszSynthesizing plant for clinical trial for Eisai
Major completionsz
Pharmaceutical laboratory for Mitsubishi Pharmaz
E-6 (Circuit Board Materials) Plant for Nippon Steel Chemical
Environment & Others
Regarding environmental projects, Chiyoda conducted sales activities for the CT-121 flue gas desulfurization
technology developed by the Company as a means to meet increasingly strict global environmental restrictions
involving energy sources. Technology was licensed to Southern Company Services for four flue gas desulfurization
units at coal-fired power plants of Georgia Power, a subsidiary of the large U.S. electric utility Southern Company, andto Black and Veatch for five flue gas desulfurization plants to be used by Dayton Power and Light. Revenue from theselicenses made a contribution to sales in the past fiscal year. New contracts decreased 1.8% to 6,439 million yen andconstruction contracts were down 45.7% to 7,540 million yen.
Major new contracts (Licensing of CT-121 technology for coal fired power station flue gas desulfurization)z
Licensing to Southern Company Services (U.S.A.) for Georgia Power (U.S.A.)z
Licensing to Black & Veatch Corporation (U.S.A.) for Dayton Power and Light (U.S.A.)12

2. Financial Condition
1) Assets, Liabilities and Shareholders’ Equity
AssetsAssets increased 40,033 million yen compared with the end of the prior fiscal year. Fixed assets decreased 1,422
million yen because of the collection of long-term delinquent receivables and other long-term receivables. There was a41,455 million yen increase in current assets, chiefly the result of an increase in joint venture assets due to anincrease in large-scale projects conducted as joint ventures.
Liabilities
Liabilities were 25,926 million yen more than one year earlier. This was mainly the net result of short- and long-termloan repayments of 101 million yen and increases of 7,322 million yen in advance receipts on construction contracts
and 21,526 million yen in accounts payable for construction costs.
Shareholders’ equity
Shareholders’ equity increased 14,106 million yen compared to the end of the previous fiscal year, mainly the result of
net profit. The equity ratio rose by 4.2 points to 20.2% at the end of the fiscal year.
Billions of Yen
FY ended
March 31
Current Assets
Cash and time
deposits
Trade receivables
and costs ofconstruction
contracts inprogress
Jointly controlled
assets of joint
ventureOther current
assetsFixed Assets

2005

2004

Change

42.3

41.6

0.7

62.6

43.5

19.0

49.9

28.4

21.5

7.0

6.9

0.0

Property, plantand equipment
Intangible fixed
assetsInvestments andother assets
Total Assets

6.7

6.9

(0.1)

2.8

2.6

0.2

11.2

12.7

(1.5)

182.8

142.8

40.0

2005

2004

Change

10.1

0.1

10.0

Trade payable andadvance receipts
on construction
contracts

118.7

89.9

28.8

Other current
liabilities
Non-current
Liabilities
Long-term debt

10.8

14.7

(3.9)

0.2

10.3

(10.1)

Other long-term
liabilities (*)
Shareholders’EquityLiabilities andShareholders’Equity

6.0

4.9

1.0

36.8

22.7

14.1

182.8

142.8

40.0

Current liabilities
Short-term loans* Includes minority interests

2) Cash Flows
Operating activities
Net cash provided by operating activities was 484 million yen. Income before income taxes was 12,049 million yen
and depreciation and amortization was 1,284 million yen. Net changes in operating assets and liabilities (total ofchanges in trade receivables, cost of construction contracts in process, trade payables, and advance receipts on
construction contracts) provided net cash of 9,766 million yen. However, there was an increase of 21,540 million
yen in joint venture assets due to an increase in large-scale projects conducted as joint ventures.
Jointly controlled assets of joint venture represent the share of the Company’s interest in balance sheet items asshown in joint venture contracts associated with construction projects. In effect, these assets thus represents theCompany’s share of cash and cash equivalents held in the name of the joint venture. Taking this into consideration,effective net cash provided by operating activities was 22,024 million yen.
Investing activities
Net cash used in investing activities was 1,006 million yen. This was mainly attributable to proceeds from the collectionof long-term loans receivable and purchases of property, plant and equipment of 1,891 million yen, including
investments in IT-related software.

13

Financing activities
Net cash provided by financing activities was 1,169 million yen due to the issue of stock from the exercise of stock
options.
The net result of the above items was a net increase of 691 million yen in cash and cash equivalents to 41,594 million
yen as of March 31, 2005.

Change in Financial (Consolidated)
Billions of Yen
Fiscal year ended March 31

2001

2002

2003

2004

2005

Total Assets

137.0

129.3

120.2

142.8

182.8

Total Liabilities (*)

121.9

114.2

103.6

120.0

146.0

Shareholders’ Equity

15.0

15.1

16.6

22.7

36.8

Net CashOperating(15.3)

10.4

6.9

15.5

0.4

provided by

Activities(used in):Investing

31.4

(0.2)

(0.8)

(1.2)

(1.0)

(16.0)

(5.8)

(9.5)

(8.2)

1.1

33.9

38.6

34.9

40.9

41.5

Activities
Financing
Activities
Balance of Cash and Cash
Equivalents* Includes minority interests.

Cash Flow IndicesFiscal year ended March 31

2001

2002

2003

2004

2005

Shareholders’ Equity ratio

11.0%

11.7%

13.9%

15.9%

20.2%

-

2.7 year

2.7 year

0.7 year

21.3 year(1.8 year)(2.5 year)(0.3 year)(0.5 year)

17.5 times

11.7 times

42.4 times

1.6 times(26.7 times)(12.4 times)(96.1 times)(72.3 times)(shareholders’ equity divided bytotal assets)
Years for Debt Redemption(interest-bearing debt divided byoperating cash flow)
Interest Coverage Ratio(operating cash flow divided by-interest expense)
Note: Figures in parentheses show years of debt redemption by real cash flow (adjusted for jointly controlled assets of joint
ventures) provided by operating activities and interest coverage ratio.

3. Outlook for the Year Ending March 31, 2006 and Risk Factors
There are still concerns about the rising cost of crude oil and basic materials as well as trends in foreign exchange
markets. However, due to the current gradual upturn in corporate earnings, there are hopes for a full-scale
recovery of the Japanese recovery in the fiscal year ending in March 2006.
Overseas, global growth in demand for natural gas and ethylene is supporting steady growth in global investments
in gas-related projects, including for gas development and other upstream projects by gas-producing nations andthe energy majors. Chiyoda will continue to target new contracts in market sectors where growth is expected tocontinue, such as for LNG, gas chemical and petrochemical plants.
In Japan, solid capital expenditures by petroleum companies are expected to continue as these companies increase
production of petrochemicals used as feedstock and invest in environmental facilities. In the pharmaceutical sector,
Chiyoda is focusing on synthesis and drug production projects that utilize engineering tools developed by theCompany for the production of many types of intermediates in small lots. In the industrial machinery sector,
substantial capital expenditures are foreseen among companies that produce electronic materials for cell phones
and liquid crystal displays. Chiyoda plans to select projects where its superior technologies can be used mosteffectively in order to capture new contracts while observing targeted profit margins.
The market for environmental facilities is expected to grow in the U.S., where restrictions targeting air pollution andother problems are being tightened, and in Europe as eastern European countries join the EU. One result is risingdemand for flue gas desulfurization facilities at coal-fired power plants and other plants. Chiyoda offers partners
licenses to utilize its CT-121 desulfurization technology. Chiyoda is now conducting full-scale sales activities for thistechnology, which represents a business model that, unlike conventional EPC (engineering, procurement andconstruction) projects, incorporates earnings from intellectual property using an internally developed technology.

14

Forecasts for the fiscal year ending in March 31, 2006 are based on the exchange rate of 100 yen to the U.S. dollar,
which is the rate used in the DSP 2008 medium-term management plan announced in February 2005. For the fiscal
year, Chiyoda is forecasting consolidated new contracts of 350,000 million yen, construction contracts of 310,000
million yen, ordinary profit of 14,000 million yen and net profit of 14,500 million yen.
On a non-consolidated basis, the forecasts are new contracts of 310,000 million yen, construction contracts of 270,000
million yen, ordinary profit of 12,500 million yen and net profit of 13,500 million yen. The projected year-end dividend
is 8 yen per share.

Outlook for FY2006 Business Results
Billions of yen
Consolidated
FY to March 31
New contracts
Completed projects
Ordinary profit
Net profit

2006
350.0
310.0
14.0
14.5

2005
411.2
267.6
11.5
12.8

Non-consolidated
Change(%)(14.9)
15.8
20.8
12.7

2006
310.0
270.0
12.5
13.5

2005
368.2
223.8
9.1
11.8

Change(%)(15.8)
20.6
35.9
13.7

Presented below is a list of major items, including significant items concerning the Group’s financial condition,
operating results and cash flows, that may have a material effect on investment decisions. The Group is aware ofthese risks and is taking the greatest possible precautions to prevent their occurrence. The Group is also working on
quickly responding in the event that a problem occurs to minimize its impact.
Risk factors listed below that involve future events represent items that the Company currently regards asimportant with regard to risk management.
1) Foreign exchange rate volatility
At overseas construction projects, foreign currencies are used for most payments received and purchases ofequipment and materials. Consequently, the Company uses foreign exchange forward agreements and other means
to minimize the impact of foreign exchange rate movements on earnings from ongoing construction projects.
2) Higher cost of basic materials and other items
At plant construction projects, there is a gap between the time estimates are prepared and the time materials andequipment are ordered and purchased. As a result, increases in the cost of labor, equipment, materials and otheritems following the receipt of an order can have an impact on earnings. Moreover, there may be an impact onearnings from higher prices of equipment and materials or in the event that completion of a project is delayed by
the inability to procure equipment and materials on time due to insufficient supplies.
Presently, prices of basic materials are much higher and there are shortages of certain raw materials. Chiyoda isdoing everything possible to avoid and minimize exposure to these risks. The Company is studying thediversification of suppliers, such as by making purchases in all areas of the world, and the placement of large orders,
including provisions covering unusually large increases in prices when negotiating contracts with customers, andtaking other actions.
3) Terrorism, hostilities in neighboring countries, strikes and anarchism
There could be an impact on earnings in the event that global terrorism or similar events directly affect the head
office, construction sites and employees or cause the suspension of business operations, or that instability in client
countries in the Middle East or elsewhere causes the medium- to long-term cancellation or postponement of capital
expenditures. If any of these events occurs, there could be an impact on earnings if the Group is unable to pass on
the resulting expenses to customers. The Group has a crisis management system that permits a quick initial
response if an event of this nature occurs.
4) Accidents during transport, etc.
There is a risk of loss or damage of equipment and materials during transport due to inclement weather and othernatural disasters. Although marine transport insurance and other precautions are taken, insurance does notnormally cover losses caused by wars and hostilities that erupt without warning. Consequently, Chiyoda is
temporarily exposed to the resulting risks. In the event that this type of problem occurs, the Company will quickly
hold discussions with customers and other related parties to determine the best response.
5) Accidents at plants
There is a possibility of a variety of problems occurring due to some cause at plants under construction by theGroup or at plants have been constructed by the Group. Such problems range from minor malfunctions ofconstituent components of a plant to a major accident like an explosion or fire that affects the entire plant. In theevent that the Group is responsible for the cause of the accident, there could be an impact on earnings.

15

To prevent the occurrence of these accidents, the Group has established quality management, safety management andother risk management systems in order to maximize the safety of the plants it constructs. The Group will continue totake actions to strengthen these risk management systems.
Precautions regarding forward-looking statements
Forecasts for operating results contained in these materials are based on various assumptions concerning future
events. Actual results may differ significantly from these forecasts due to a wide range of factors. Investors are
therefore urged to refrain from reaching decisions based solely on these forecasts.

16

Financial Statements
1. Consolidated Balance Sheets
As of Mar. 31, 2005%
AssetsCurrent Assets
Cash and time deposits ..........................
Notes and accounts receivable-trade........
Costs of construction contracts in progress ..
Deferred tax assets................................
Jointly controlled asset of joint venture ....
Other ...................................................
Allowance for doubtful accounts ..............
Total Current Assets ...........................
Fixed Assets
Property, plant and equipment
Buildings and structures ...................
Accumulated depreciation.................
Book value of buildings andstructures
Machinery and equipment ................
Accumulated depreciation................ .
Book value of machinery andequipment
Tools, furniture and fixtures..............
Accumulated depreciation.................
Book value of tools, furniture andfixtures
Land ..............................................
Construction in progress ..................
Total property, plant and equipment ..
Intangible fixed assets .......................

42,38437,64924,977
3,803
49,953
3,749(506)
162,011

88.6

Millions of Yen
As of Mar. 31, 2004%

41,613
24,612
18,9182,086
28,413
5,343(431)
120,556

84.4

Difference

771
13,036
6,059
1,717
21,540(1,594)(75)
41,455

6,302
3,247

6,352
3,335

3,054

3,017

685
313

870
612

371

258

5,352
3,954

5,269
4,151

1,398

1,118

279

1,955
3
6,783

3.7

2,526
1
6,922

4.9

(571)
1
(139)

2,844

1.6

2,607

1.8

236

36

113

Investments and other assets
Investment securities ......................
Long-term loans..............................
Long-term accounts receivable..........
Long-term receivables .....................
Deferred tax assets .........................
Other investments...........................
Allowance for doubtful accounts ........
Allowance for capital loss on
investments ....................................
Total investments and other assets ....

11,254

6.1

12,7738.9(1,518)

Total Fixed Assets ..............................

20,881

11.4

22,30315.6(1,422)

Total Assets ........................................

182,893

100.0

142,859

100.0

40,033

4,322
643
3,711
3,003
112
2,208
(2,485)

4,325
701
5,127
4,133
82
2,220
(3,554)(2)(57)(1,416)(1,130)
30
(11)
1,068

(263)

(263)

—

17

As of Mar. 31, 2005%

Millions of Yen
As of Mar. 31, 2004%

Difference

Liabilities and Shareholders’ Equity
Current Liabilities
Notes and accounts payable-trade ...............
Short-term loans ......................................
Income taxes payable.................................
Advance receipts on construction contracts ...
Indemnity allowance for completed
construction ..........................................
Accrued bonuses........................................
Allowance for contingency loss ....................
Other ......................................................
Total Current Liabilities...........................

74,414
10,101
664
44,38452,888101
194
37,061

21,526
10,000
469
7,322

759
2,814
—
6,642
139,781

76.4

1,079
1,548
200
11,762
104,836

73.4

(319)
1,265
(200)
(5,119)34,944

Non-Current Liabilities
Long-term debt .........................................
Deferred tax liabilities.................................
Liability for retirement benefits ....................
Liability for retirement benefit to directors ....
Other liabilities ..........................................
Total Non-Current Liabilities ...................

214
1
5,167
425
85
5,894

3.2

10,316
1
4,128
378
86
14,912

10.5(10,101)
(0)
1,038
46
(1)
(9,017)

Total Liabilities .......................................

145,675

79.6

119,748

83.9

25,926

Minority Interests ...................................

345

0.2

344

0.2

0

Shareholders’ Equity
Common stock ..........................................
Additional paid-in capital.............................
Retained earnings ......................................
Net unrealized loss on available-for-salesecurities ..................................................
Foreign currency translation adjustments......
Treasury stock...........................................
Total Shareholders’ Equity ......................

12,721
6,506
18,622

6.9
3.6
10.2

12,027
5,818
5,800

8.4
4.1
4.0

694
688
12,821

31
(759)
(250)
36,873

0.0
(0.4)
(0.1)
20.2

26
(766)
(140)
22,766

0.0
(0.5)
(0.1)
15.9

5
7
(110)
14,106

Liabilities, Minority Interests andShareholders’ Equity ...............................

182,893

100.0

142,859

100.0

40,03318

2. Consolidated Statements of Income

Construction Contracts ...........................
Cost of Construction Contracts................
Gross profit ...............................................
Selling, General and
Administrative Expenses.........................
Operating profit .........................................

Apr. 1, 2004 –Mar. 31, 2005%
267,655
100.0
247,905
92.6
19,7497.4
8,671
11,077

3.3
4.1

Millions of Yen
Apr. 1, 2003 –March 31, 2004%
206,816
100.0
192,709
93.2
14,106
6.8
8,225
5,881

Difference
60,83855,195
5,642

4.0
2.8

446
5,196

Other Income
Interest ..............................................
Dividend income ..................................
Rent income........................................
Equity in earnings of associatedcompanies ..........................................
Foreign exchange gain .........................
Other ................................................
Total Other Income .................................

723
19
247

360
50
146

152
—
141
1,284

0.5

155
294
170
1,176

0.6

107

Other Expenses
Interest expense .................................
Cost of rent income..............................
Foreign exchange loss ..........................
Other .................................................
Total Other Expenses ..............................

304
149
102
218
775

0.3

374
84
—
250
710

0.3

64

Ordinary profit...........................................

11,587

4.3

6,348

3.1

5,239

0.6

109

Extraordinary Gain
Reversal of allowance for doubtful
accounts.............................................
Reversal of allowance for contingency
loss....................................................
Other .................................................
Total Extraordinary Gain .........................
Extraordinary Loss
Loss on sale of fixed assets ...............
Impairment loss ..............................
Loss on removal of property, plant andequipment ...................................
Loss on guarantee of construction
performance in affiliated companies .
Other .............................................
Total Extraordinary Loss .....................

1,073

485

200
34
1,308

600
112
1,198

0.5

390
233

—
—

98

—

—
124
846

0.3

1,679
497
2,176

1.1

(1,330)

Profit before income
taxes and minority interests ....................

12,049

4.5

5,370

2.6

6,679

Income taxes current ............................
Income taxes deferred............................
Total Tax
Minority interests in net profit..................
Minority interests in net loss....................
Net profit ............................................

931(1,754)(823)
9—12,863

(0.3)
(0.0)
—
4.8

667
(1,905)(1,237)
—
38
6,646

(0.6)
—
0.0
3.2

414
9
(38)
6,216

19

3. Consolidated Statements of Retained Earnings

Additional Paid-in Capital
Additional Paid-in Capital at Beginning of Period ... ....
Increase in capital surplus
Proceeds from new shares issued for the exercise ofstock options ............................... ................... ....
Additional Paid-in Capital at End of Period ............. ....

Apr. 1, 2004 –Mar. 31, 2005

Millions of Yen
Apr. 1, 2003 –Mar. 31, 2004

5,818

5,818

—

688
6,506

—
5,818

688
688

Difference

Retained Earnings
Retained Earnings at Beginning of Period............... ....
Increase in Retained Earnings
From net profit................................. ................... ....
From decrease in consolidated subsidiaries .............. ....
Total Increase in Retained Earnings ... ................... ....

5,800

(496)

6,297

12,863—
12,863

6,646
12
6,659

6,204

Decrease in Retained Earnings
From consolidated subsidiaries........... ................... ....
Decrease due to exclusion of equity method affiliates ....
Total Decrease in Retained Earnings .. ................... ....
Retained Earnings at End of Period..... ................... ....

41—
41
18,622

—
361
361
5,800

(319)
12,82120

4. Consolidated Statements of Cash Flow

Cash Flow from Operating Activities
Profit (loss) before income
taxes and minority interests .............................................
Depreciation and amortization ..........................................
Decrease in allowance for doubtful accounts .......................
Interest and dividend income ...........................................
Interest expense .............................................................
Foreign exchange losses (gains)........................................
Equity in earnings of associated companies ........................
Loss on sales and disposal of property,
plant and equipment........................................................
Impairment loss ..............................................................
Decrease (increase) in trade notes and accounts receivable..
Decrease (incrase) in costs of construction contracts inprogress.........................................................................
Increase in trade notes and accounts payable .....................
Increase (decrease) in advance receipts on construction
contracts ........................................................................
Increase in accrued bonuses .............................................
Increase in retirement benefits .........................................
Indemnity allowance for completed contracts......................
Decrease in allowance for investment loss ..........................
Decrease in allowance for contingency loss.........................
Increase in jonitly controlled assets of joint ventures ...........
Increase (decrease) in consumption taxes payable ..............
Increase (decrease) in deposits received ............................
Other.............................................................................
Subtotal ...............................................
Interest and dividend income............................................
Interest paid...................................................................
Income taxes paid ...........................................................
Net Cash Provided byOperating Activities ............................................................

Apr. 1, 2004 –Mar. 31, 2005

Millions of Yen
Apr. 1, 2003 –Mar. 31, 2004

12,049
1,284
(993)
(742)
304
(66)
(152)

5,370
1,205
(1,128)
(410)
374
650
(155)

6,679
78
134
(331)
(70)
(717)
3

488
233
(13,064)

—
—
762

488
233
(13,826)(6,059)21,568

2,187
6,376

(8,246)15,191

7,322
1,265
1,038
(319)
—
(200)
(21,540)183(2,626)
469
442
754
(304)
(408)

11,889
172
1,217
385
(0)
(600)
(19,741)
645
4,125
2,661
15,988
665
(367)
(705)

(4,566)
1,092
(178)
(704)
0
400
(1,799)(461)(6,752)(2,192)(15,546)
89
62
296

484

15,580(15,096)

Difference21

4. Consolidated Statements of Cash Flow (Continued)
Apr. 1, 2004 –Mar. 31, 2005

Millions of Yen
Apr. 1, 2003 –Mar. 31, 2004

Difference

Cash Flow from Investing Activities
Payment for time deposits ................................................
Proceeds from refundsof time deposits with maturities ........................................
Payments for purchase of investment securities ..................
Proceeds from sales of investment securities ......................
Purchase of property, plant and equipment.........................
Proceeds from sale of property, plant and equipment...........
Purchase of intangible fixed assets ....................................
Net decrease in short-term loans.......................................
Long-term loans..............................................................
Proceeds from collections of long-term loans ......................
Other.............................................................................
Net Cash Used in Investing Activities .

(622)

(1)

(620)

542
(33)
222
(854)
65
(1,037)
39
(20)
689
1
(1,006)

353
(20)
11
(751)
8
(992)
10
(144)
249
0
(1,277)

188
(13)
211
(102)
57
(44)
29
123
439
1
270

Cash Flow from Financing Activities
Net decrease in short-term bank loans...............................
Repayments of long-term debt .........................................
Proceeds from issuance of new stock .................................
Other ............................................................................
Net Cash Used in Financing Activities .

—
(101)
1,382
(110)
1,169

(7,904)
(257)
—
(92)
(8,254)

7,904
156
1,382
(18)
9,424

100

(78)

178

747
40,902

5,970
34,940(5,222)
5,962(56)
41,594(7)
40,902(48)
691

Foreign Currency Translation Adjustments on Cashand Cash Equivalents......................................................
Net Increase (Decrease) in Cash and Cash Equivalents ..
Cash and Cash Equivalents at Beginning of Period .........
Decrease in Cash and Cash Equivalents Elimination From
Consolidation .................................................................
Cash and Cash Equivalents at End of Period ...................

22

<Appendix to Consolidated Financial Statements>

Changes in Accounting Principles
Current Fiscal Year (From April 1, 2004 to
March 31, 2005)
Recognition of revenues on construction contracts inprocess
In principle, revenues are recognized uponcompletion of construction contracts, except for thefollowing contracts. The Company and its four
significant domestic consolidated subsidiaries
recognize revenues on construction contracts greaterthan 0.1 billion yen and having construction durationof more than 12 months by the percentage-ofcompletion method.
Chiyoda Singapore (Pte) Ltd. (Singapore-based
subsidiary), PT. Chiyoda International Indonesia(Indonesia-based subsidiary) and seven othersubsidiaries recognize revenues by the percentageof-completion method.
Revenues on construction contracts recognized by
the percentage-of-completion method totaled
186,399 million yen

Previous Fiscal Year (From April 1, 2003 to
March 31, 2004)
Recognition of revenues on construction contracts inprocess
In principle, revenues are recognized uponcompletion of construction contracts, except for thefollowing contracts. Revenues on construction
contracts greater than 5 billion yen and having
construction duration of more than 18 months arerecognized by the percentage-of-completion method.
Chiyoda Singapore (Pte) Ltd. (Singapore-based
subsidiary), PT. Chiyoda International Indonesia(Indonesia-based subsidiary) and ten othersubsidiaries recognize revenues by the percentageof-completion method.
Revenues on construction contracts recognized by
the percentage-of-completion method totaled
146,073 million yen.

Changes in Accounting Policies
In prior periods, the percentage-of-completion
method had been applied to contract amounts
greater than 5 billion yen and having construction
duration of more than 18 months. However, thecriteria for the application of this method have beenrevised. Effective from new contracts signed in thecurrent fiscal year, revenues on construction
contracts greater than 0.1 billion yen and having
construction duration of more than 12 months arerecognized by the percentage-of-completion method.
Effective from new contracts signed in the current
fiscal year, the three significant domestic
consolidated subsidiaries have also changed criteria
for the application of the percentage-of-completion
method to maintain conformity with the criteria forthe application of the percentage-of-completion
method of the Company.
The change in the accounting policy was made inconsideration of the increasing number of small- to
medium-size projects, more precise management ofsuch projects made possible by enhanced corporate
organization and to better reflect construction
revenue in the period profit/loss in view of therecent trends in international accounting standards.
As a result, gross profit on projects completed was
4,318 million yen higher, and gross profit, operating
profit, ordinary profit and net profit were each 300
million yen each higher, compared to amounts thatwould have been reported if the previous method
had been used consistently.
The effect of this change on Segment Information ispresented in Segment Information.

23

Current Fiscal Year (From April 1, 2004 to
March 31, 2005)
Accounting for impairment of property, plant andequipment
Effective the current consolidated fiscal year, theCompany adopted the new standards for accounting
for impairment of property, plant and equipment(Opinion on “Accounting Standards for Impairmentof Fixed Assets,” (ASBJ, August 9, 2002)) and
Accounting Standard Implementation Guidance No. 6(“Implementation Guidance on Accounting Standard
for Impairment of Fixed Assets,” (ASBJ, October 31,2003)), effective the fiscal year ending on March 31,
2004.

Previous Fiscal Year (From April 1, 2003 to
March 31, 2004)―

The effect of the adoption of the new accounting
standard and the accounting standard
implementation guidance was to decrease profit
before income taxes by 233 million yen, comparedto the amount that would have been reported if theprevious standard had been applied consistently.
In accordance with the revised Standards for the
Preparation of Interim Consolidated Financial
Statements, accumulated impairment losses are
deducted directly from the carrying amounts of therespective fixed assets.
The effect of this change on Segment Information ispresented in Segment Information.

Current Fiscal Year (From April 1, 2004 to
March 31, 2005)
With the implementation of the “Revision of the
Local Tax Law (Legislation No. 9, 2003) on March
31, 2003 and the introduction from the fiscal year
starting on and after April 1, 2004 of enterprisetaxes which are based on the size of the enterprise,
the Company has adopted the new accounting
standard (ASBJ Accounting Standard
Implementation Guidance No. 12 (February 13,2004): “Implementation Guidance on Presentation of
the Size-based Portion of Enterprise Taxes inStatements of Income.” Accordingly, the amount ofenterprise taxes that have a tax basis on the“amount of added value” and the “amount of capital”
are presented as a component of selling, general andadministrative expenses.

Previous Fiscal Year (From April 1, 2003 to
March 31, 2004)―

The effect of this change was to increase selling,
general and administrative expenses by 163 million
yen and decrease operating income, ordinary income
and income before income taxes by 163 million yen
each.
The effect of this change on Segment Information ispresented in Segment Information.

24

Notes to consolidated financial statements
SECURITIESPrevious fiscal year
1. Information regarding marketable securities classified as “Other Securities” (As of March
31, 2004)
Security
Securities whose carrying value
exceeds their acquisition cost
Securities whose acquisition costexceeds their carrying value
Total

Acquisition cost

Carrying value

48

93

Millions of yen
Unrealized
gain/loss
44

8

8

(0)

57

101

44

Equitysecurities
Equitysecurities

2. Sales of securities classified as “Other Securities (April 1, 2003 – March 31, 2004)
Sales amount

Aggregate gain
3—

Millions of yen
Aggregate loss
5

3. “Other Securities” without market value mainly consisted of the following. Their carrying
values are summarized below. (As of March 31, 2004)
Other Securities
Millions of yen
1,608
15

Equity securities – unlisted (excluding OTC stock)
Subscription certificates

Current fiscal year
1. Information regarding marketable securities classified as “Other Securities” (As of March
31, 2005)
Security
Securities whose carrying value
exceeds their acquisition cost
Securities whose acquisition costexceeds their carrying value
Total

Acquisition cost

Carrying value

57

111

Millions of yen
Unrealized
gain/loss
53

—

—

—

57

111

53

Equitysecurities
Equitysecurities

2. Sales of securities classified as “Other Securities (April 1, 2004 – March 31, 2005)
Sales amount

Aggregate gain
70

20

Millions of yen
Aggregate loss
0

3. “Other Securities” without market value mainly consisted of the following. Their carrying
values are summarized below. (As of March 31, 2005)
Other Securities
Equity securities – unlisted (excluding OTC stock)
Subscription certificatesMillions of yen
1,482
15

25

Allowance for Retirement Benefits
1. Accounting for retirement benefits

Previous fiscal year (April 1, 2003 – March 31, 2004) and Current fiscal year (April 1, 2004 – March 31, 2005)
The Company and its consolidated domestic subsidiaries provide qualified pension plans and lump sum severance
payment plans for their defined benefit pension plans. In addition, the Company sometimes provides extra severance
pay. Part of overseas subsidiaries also provides defined benefit plans. The company has been providing lump sum
severance payment plans and qualified pension plans from 1980.

2. Retirement benefit obligations
Millions of Yen
As of Mar. 31, 2005
As of Mar. 31, 2004
Projected benefit obligations
Fair value of plan assets
Obligation for unreserved retirement
benefitUnrecognized transitional obligation
Unrecognized actuarial loss
Reserve for retirement benefits (*1)

(33,587)
15,785(34,025)
15,594(17,802)(18,431)

8,082
4,552
(5,167)

8,890
5,412
(4,128)Note 1) The reserve for retirement benefits does not include extra severance payments of 27 million yen in the previous fiscal
year. These payments are included in the other current liabilities.
2) The Group uses heuristic method for consolidating retirement obligations of its subsidiaries.

3. Retirement benefit costs
Millions of Yen
Apr. 1, 2004 –Mar. 31, 2005
Service cost
Interest cost
Expected return on plan assets
Amortization of transitional obligation
Recognized actuarial loss
Net periodic benefit cost

Apr. 1, 2003 –Mar. 31, 2004
930
472
(214)
808
664
2,661

921
477
(195)
808
782
2,795

Note: According to heuristic method of consolidation of subsidiaries, subsidiary retirement benefit costs are recorded under
the service cost.

4. Actuarial assumptions used to determine costs and benefit obligations
for principal pension plans

Allocation of projected benefit obligation
Discount rate
Expected rate of return on plan assets
Recognition period of actuarial gain/loss

Amortization period of transitional
obligation

Apr. 1, 2004 –Mar. 31, 2005
Equal amount over eachperiodApr. 1, 2003 –Mar. 31, 2004
Equal amount over eachperiod1.5%
1.5%
10 years (depreciated with thestraight line method over a
fixed number of years withinaverage employee working
period in the fiscal year inwhich the loss occurred, andrecognized in the following
fiscal year)

1.5%
1.5%
10 years (depreciated with thestraight line method over a
fixed number of years withinaverage employee working
period in the fiscal year inwhich the loss occurred, andrecognized in the following
fiscal year)

15 years

15 years

26

Tax Effect Accounting
1. Principle cause of deferred tax assets and liabilities
Millions of Yen
As of Mar. 31, 2005
As of Mar. 31, 2004
Deferred tax assets
Tax loss carry forward........................................... ..
Cost of construction contracts ...................................
Retirement benefits .................................................
Allowance for doubtful accounts ................................
Loss on construction contracts due to application ofprogress percentage method.....................................
Loss on valuation of costs of construction contracts
in progress .............................................................
Loss on valuation of fixed assets ...............................
Other .....................................................................
Sub-total deferred tax assets ...................................... ..
Valuation allowance ......................................................
Total deferred tax assets ...............................................

3,483
3,625
2,010
825

6,679
3,632
1,506
1,269

55

562

587
778
2,339
13,706(8,608)
5,098

122
737
2,872
17,381(15,196)
2,184

Deferred tax liabilities
Equity in profit/loss of joint ventures ... ................... ..
Unrealized gains on other securities ...........................
Other .....................................................................
Total deferred tax liabilities ............................................

(1,161)(21)(0)(1,183)

—
(17)
(0)
(18)

Net deferred tax assets .................................................

3,914

2,166

Note: Net deferred tax assets for the current and the previous fiscal year are included in the consolidated balance sheets asfollows:

Current assets – Deferred tax assets ...............................
Fixed assets –Deferred tax assets ...................................
Non-current liabilities – Deferred tax liabilities..................

Millions of Yen
As of Mar. 31, 2005
As of Mar. 31, 2004
3,803
2,086
112
82
(1)
(1)

2. Principle items which caused differences between statutory effective tax
rate and income tax rate charged after adoption of deferred tax
accounting

Normal effective statutory tax rate..................................
Adjustments
Non-deductible entertainment and other expenses.......
Non-taxable dividend and other income......................
Parity adjustment for inhabitance taxes......................
Foreign taxes .........................................................
Valuation allowance .................................................
Equity in earnings of affiliated companies ...................
Net loss of consolidated subsidiaries ..........................
Unrealized income ...................................................
Other .....................................................................
Income tax rate charged after adoption of deferred
tax accounting .....................................................

Percent %As of Mar. 31, 2005
As of Mar. 31, 2004
%
%
40.6
42.0
2.5
(0.0)
1.2
2.0
(53.4)
(0.5)
(0.4)
(0.0)
(1.2)

13.5
(0.0)
1.2
2.9
(74.8)
(1.2)
(0.8)
(5.4)
(0.4)

(6.8)

(23.0)

27

Segment Information
1. Industry Segments
The Company’s current fiscal year was from April 1, 2004 to March 31, 2005. The previous fiscal year was from April 1,
2003 to March 31, 2004. The main business of the Chiyoda Group is engineering that focuses on the planning, design,
construction, and operations assistance of public- and private-sector facilities, as well as facilities for pollution
prevention and environmental preservation and enhancement. In non-engineering businesses, there are no segmentsthat account for 10% or more in terms of sales, operating profits or assets, and as such these segments have been
omitted.

2. Geographic Segments
Current fiscal year (From April 1, 2004 to March 31, 2005)
Millions of Yen

Revenues
Outside customers .......
Inter-segment .............
Total..........................
Operating expenses......
Operating Profit (Loss) ....
AssetsNorth
America

OthersEliminations(Corporate)

Consolidated

267,655
1,574－(1,574)

267,655－

269,22931

3

258,138(1,574)(1,561)

267,655
256,577(0)(3)

11,091(13)

11,077

122

182,742150

182,893

Japan

Asia

257,3803

10,274
1,539

－
31

－
－

257,384
246,107

11,81431

11,995

11,276(181)

174,447

7,607

565

Total

－

(Notes)(1)
Geographic segmentation is according to geographic proximity(2)
Countries included in regions other than Japan:
Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand.
North America: U.S.A.
Other regions: Nigeria.
Effective the current fiscal year, Chiyoda Deustchland GMBH (Germany), a consolidated subsidiary in prior periods,
is excluded from the consolidation due to liquidation in July 2003. Effective, the current fiscal year, Chiyoda
International Limited (Britain), a consolidated subsidiary in prior periods, is excluded from the consolidation becauseof reduced materiality of impact in the context of the consolidated financial statements. Effective the current fiscal
year, geographical segment information excludes Europe since there were no sales in that geographical segment..
(3)
Within asset Elimination (Corporate) account, corporate assets accounted for 3,339 million yen, consisting mainly of
long-term investments (investment securities).
(4)
Changes in Accounting Principles:
1) As stated in Section 4 (d), Recognition of Revenues on Construction Contracts In Process (Changes in accounting
policy), the Company and its three domestic consolidated subsidiaries have changed the policy for the recognitionof revenues on construction contracts in process. Effective the current fiscal year, the Company and its threedomestic consolidated subsidiaries recognize revenues on new construction contracts greater than 0.1 billion yen
and having construction duration of more than 12 months by the percentage-of-completion method.
The effect of the adoption of the new accounting standard and the accounting standard was to increase
construction contracts in the Japan segment from external customers by 4,318 million yen and operating profit by
300 million yen.
The adoption of the new accounting policy has no effect on other segments.
2) As stated in the section on “Changes in the Basis of Presenting Consolidated Financial Statements” (Accounting
for Impairment of Property, Plant and Equipment), effective the current consolidated fiscal year, the Company
adopted the new standards for accounting for impairment of property, plant and equipment (Opinion on“Accounting Standards for Impairment of Fixed Assets,” and Accounting Standard Implementation Guidance).
The effect of the adoption of the new accounting standard and the accounting standard was to decrease assets in
the Japan segment by 233 million yen.
The adoption of the new accounting policy has no effect on other segments.
3) With the implementation of enterprise taxes, which are based on the size of the enterprise, the Company has
adopted the new accounting standard. Accordingly, effective from the current consolidated fiscal year, the amountof enterprise taxes that have a tax basis on the “amount of added value” and the “amount of capital” arepresented as a component of selling, general and administrative expenses.
The effect of this change was to increase selling, general and administrative expenses in the Japan segment by
163 million yen and decrease operating profit, ordinary profit and income before income taxes by 163 million yen
each.
The adoption of the new accounting policy has no effect on other segments.

28

Previous fiscal year (From April 1, 2003 to March 31, 2004)

Revenues
Outside customers ..........
Inter-segment ................
Total ............................
Operating expenses.........
Operating Profit (Loss) ....
AssetsEuropeMillions of Yen
North
OthersAmerica

Eliminations(Corporate)

Consolid
ated－(1,182)

206,816

1,182－

207,999(1,182)

206,81633

11

202,151(1,216)200,935

0

(11)

5,847

33

5,881

577

124

146,666(3,806)

142,859

Japan

Asia

Total

196,523

10,23953

206,816

807

338

－
33

－

3

－

196,526

11,047391

33

190,560

11,162

383

5,965

(114)

7

139,232

6,487

244

－

(Notes)(1)
Geographic segmentation is according to geographic proximity(2)
Countries included in regions other than Japan:
Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand.
Europe: U.K. and Germany
North America: U.S.A.
Other regions: Nigeria.
(3)Within asset Elimination (Corporate) account, corporate assets accounted for 3,015 million yen, consisting mainly of
long-term investments (investment securities).
(4)
Changes in Accounting Principles:
Starting from the current fiscal year, the Company has changed the fixed number of years for the processing ofoperating expenses for actuarial loss to 10 years, from the previous 12 years. This change will have only a slighteffect on each segment.

3. Overseas Sales
Current fiscal year (April 1, 2004 to March 31, 2005)
Asia
Overseas sales .............................................
Consolidated sales ........................................
Ratio of overseas to consolidated sales (%) ......

28,083
10.5

Millions of Yen
Russia/Other
CentralRegionsAsia
96,13249,817
4,010

Middle
East

35.9

18.6

1.5

Total
178,043
267,655
66.5(Notes)(1)
Geographic segmentation is according to geographic proximity(2)
Countries and areas included in each region:
Asia: China, Indonesia and Thailand.
Middle East: Qatar, Oman, Saudi Arabia, Iran and United Arab Emirates
Russia/Central Asia: Russia
Other regions: Venezuela(3)Overseas sales are those sales of the Company and its consolidated subsidiaries that take place in countries orregions other than Japan(4)
Reclassification of Geographical Segments
As stated in Section 4 (d), Recognition of Revenues on Construction Contracts In Process (Changes in accounting
policy), the Company and its three domestic consolidated subsidiaries have changed the policy for the recognition ofrevenues on construction contracts in process. Effective the current fiscal year, the Company and its three domestic
consolidated subsidiaries recognize revenues on new construction contracts greater than 0.1 billion yen and having
construction duration of more than 12 months by the percentage-of-completion method.
The effect of this change was to increase construction contracts in the Asia segment by 190 million yen, in the
Middle East segment by 678 million yen and in other regions segment by 53 million yen, respectively, compared toamounts that would have been reported if the previous method had been used consistently.

29

Previous fiscal year (April 1, 2003 to March 31, 2004)
Asia
Overseas sales .............................................
Consolidated sales ........................................
Ratio of overseas to consolidated sales (%) ......

26,338
12.74

Millions of Yen
Russia/MiddleOther
CentralEast
RegionsAsia
90,78622,343
3,994
43.90

10.80

1.93

Total
143,462
206,816
69.37(Notes)(1)
Geographic segmentation is according to geographic proximity(2)
Countries and areas included in each region:
Asia: China, Thailand and Indonesia
Middle East: Qatar, Saudi Arabia, Oman and Iran
Russia/Central Asia: Russia
Other regions: Venezuela(3)Overseas sales are those sales of the Company and its consolidated subsidiaries that take place in countries orregions other than Japan(4)
Reclassification of Geographical Segments
Effective the current fiscal year, the “Russia and Central Asia” region, included as a component of “Other Regions” inprior years, is reclassified and presented as a separate line item (“Russia and Central Asia”) since total sales in thisregion exceeded 10% of consolidated construction contracts.
Sales in the “Russia and Central Asia” region included in “Other Regions” totaled ¥685 million, which accounted for
0.4% of the overseas sales, in the previous consolidated fiscal year.

30

Production, Orders and Sales Situation
1. OrdersMillions of Yen
Apr. 1, 2004 –Apr. 1, 2003 –Mar. 31, 2005
Mar. 31, 2004
New contracts
Backlog
New contracts
Backlog
Amt
%
Amt
%
Amt
%
Amt
%
Business Segment
Engineering
LNG plant.............................
Gas and power utilities ..........
Gas chemicals.......................
Petroleum andpetrochemicals .....................
General chemicals .................
Industrial machinery..............
Environment and other ..........
Total Engineering
Other...................................
Total...................................

285,055+76.1%
20,539-59.7%
13,884+206.7%52,227+16.0%
17,756+13.3%
11,270+350.2%6,439-1.8%
407,173+41.8%
4,119+15.6%
411,292+41.5%

69.3
5.0
3.4
12.7
4.3
2.7
1.6
99.0

1.0
100.0

378,270[3,455]68,433
[413]
9,961
[166]
35,090[-762]

72.4

161,852

55.7

13.1

50,943

17.5

1.9

4,526

1.5

6.7

45,042

15.5

24,295[-258]
2,858
[-9]
3,534
[-51]
522,444[2,953]

4.7

15,665

5.4

0.5

2,503

0.9

0.7

6,559

2.3

100.0

287,094

98.8

－

3.564

1.2

100.0

290,658

100.0

－
[－]
522,444[2,953]200,604[-14,816]
99,143[-1,777]
10,589[-2,302]40,643[-187]

53.4

17,367[2,208]2,819[1,025]
4,686[-8,304]
375,854[-24,155]

4.6

－
[－]
375,854[-24,155]

26.4
2.8
10.8

0.8
1.2
100.0

－
100.0

(Note)Classification of business segment has been changed in accordance with Gas Value Chain business.

Breakdown of Domestic and Overseas Orders
Millions of Yen
Apr. 1, 2004 –Apr. 1, 2003 –Mar. 31, 2005
Mar. 31, 2004
New contracts
Backlog
New contracts
Backlog
Amt
%
Amt
%
Amt
%
Amt
%
89,496+24.3%
Overseas.............................. 321,796+47.2%
Total................................... 411,292+41.5%

Domestic..............................

21.8
78.2
100.0

91,092[-204]
431,352[3,157]522,444[2,953]

17.4

71,97924.8

82.6

218,678

75.2

100.0

290,658

100.0

91,412[-817]
284,441[-23,337]
375,854[-24,155]

24.3
75.7
100.0

(Note)
Numbers in brackets [ ] under “Backlog of orders” indicate the total of increases or decreases accompanying foreign
currency translation adjustments related to foreign currency business, increases resulting from adjustments for new
contracts, and decreases resulting from contractual changes in orders received before the previous fiscal year.

31

2. Sales

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

Millions of Yen
Apr. 1, 2004 –Apr. 1, 2003–
Mar. 31, 2005
Mar. 31, 2004
Amt
%
Amt
%
110,844+46.5%
51,662+149.8%
14,678-61.6%
57,018+48.7%
10,570-0.8%
11,221+94.1%
7,540-45.7%
263,536+29.7%
4,119+15.6%
267,655+29.4%

41.4
19.3
5.5
21.3
4.0

75,641
20,683

98.5

18.5

38,33818.5

10,657

5.2

5,782

2.8

13,8986.7

203,252

1.5
100.0

10.0

38,250

4.2
2.8

36.6

98.3

3,564

1.7

206,816100.0(Note)Classification of business segment has been changed in accordance with Gas Value Chain business.

Breakdown of Domestic and Overseas Sales

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

Millions of Yen
Apr. 1, 2004 –Apr. 1, 2003–
Mar. 31, 2005
Mar. 31, 2004
Amt
%
Amt
%
89,612
63,35333.5
30.6+41.4%
178,043
143,46266.5
69.4+24.1%
267,655
206,816100.0
100.0+29.4%(Notes)(1)“Status of production” is not listed, because it is difficult to define production results for the Chiyoda Group.
(2)
Sales results and percentages of total sales for main customers are shown below.

Millions of Yen
Apr. 1, 2004–
Mar. 31, 2005
Customer
Sakhalin Energy Investment Co.,Ltd.
Ras Laffan LNG Co., Ltd.

(3)

Amt
49,77728,092

Apr. 1, 2003 –Mar. 31, 2004%
Customer
18.6 Ras Laffan LNG Co., Ltd.
10.5 Sakhalin Energy Investment Co.,Ltd.
Qalhat LNG SA OC

Amt
28,110%13.6

22,34310.8

22,025

10.7

Amounts contained in these tables do not include consumption tax.

32