Translation

May 14, 2015

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2015
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)(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated performance for the fiscal year ended March 31, 2015
(from April 1, 2014 to March 31, 2015)(1) Consolidated operating results
Net sales
Millions of yen(Percentages indicate year-on-year changes.)

Operating income% Millions of yen

Ordinary income
Millions of% yen

Net income% Millions of yen%

Fiscal year ended
480,979
7.8
21,466
1.8
22,271 (2.5)
11,029 (18.0)
March 31, 2015
Fiscal year ended
446,147 11.8
21,079 (16.1)
22,837 (10.5)
13,447 (16.4)
March 31, 2014
Note: comprehensive income: Fiscal year ended March 31, 2015: 15,121 million yen (16.0% increase year on year)
Fiscal year ended March 31, 2014: 13,034 million yen (48.0% decrease year on year)

Net income per Fully diluted net Return on Equity Ratio of Ordinary Ratio of Operating
Income to Total
Income toshare
income per share(ROE)
Assets
Revenue
Yen
Yen%%
Fiscal year ended
42.58
－
5.5
4.5
March 31, 2015
Fiscal year ended
51.91
－
7.0
5.0
March 31, 2014
Reference: Equity in earnings of associated companies: Fiscal year ended March 31, 2015: (783) million yen
Fiscal year ended March 31, 2014: (374) million yen

%
4.5
4.7

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of March 31, 2015

515,839

208,40540.0

796.89As of March 31, 2014

475,288

198,03141.3

758.31

Reference: Equity

As of March 31, 2015: 206,395 million yen

As of March 31, 2014: 196,411 million yen(3) Consolidated cash flows

Fiscal year ended
March 31, 2015
Fiscal year ended
March 31, 2014

Net cash provided byoperating activities

Net cash used ininvesting activities

Net cash used infinancing activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen(24,145)(5,444)(4,569)113,246(17,177)(16,796)(5,249)145,3031

2.

Cash dividends
Cash dividends per share
Record dateFiscal year ended
March 31, 2014
Fiscal year ended
March 31, 2015
Fiscal year ending
March 31, 2016
(Forecast)

3.

First
quarter

Secondquarter

Third
Fiscalquarter year-end Annual

Yen

Yen

Yen

–

–

–
–

Payment of
Cash
Dividends

PayoutDividend on
Equity Ratio
Ratio(Consolidated) (Consolidated)

Yen

Yen

Millions of
yen

%

%

–

16.00

16.00

4,144

30.8

2.2

–

–

13.00

13.00

3,367

30.5

1.7

–

–

14.00

14.00

30.2

Consolidated earnings forecasts for the fiscal year ending March 31, 2016
(from April 1, 2015 to March 31, 2016)(Percentages indicate year-on-year changes.)
Net income
Net income pertoNet sales
Operating income Ordinary income attributableshareowners of
the Parent
Millions ofMillions ofMillions ofMillions of
yen
yen
yen
yen
%
%
%
%
Yen

Fiscal year ending
March 31, 2016

4.

600,000

24.7

20,000(6.8)

22,000(1.2)

12,000

8.8

46.33

Others(1) Changes in Significant Subsidiaries during the Period (changes in specified
subsidiaries accompanying changes in the scope of consolidation): None
(2) 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
(3) Number of issued shares (common stock)a. Number of shares issued at year-end (including treasury shares)
March 31, 2015
260,324,529 shares
March 31, 2014
260,324,529 sharesb. Number of treasury shares at year-end
March 31, 2015
1,323,232 shares
March 31, 2014
1,310,312 sharesc. Average number of shares during each of the following fiscal years
Year ended March 31, 2015
259,006,890 sharesYear ended March 31, 2014
259,030,158 shares* 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(1)Qualitative Information on Business Performance
The global economic environment surrounding the Chiyoda Group has become moreincreasingly uncertain during this fiscal year, mainly due to economic slowdowns inseveral regions, geopolitical fears and plunge in crude oil prices in the latter half of thisfiscal year, while the US economy has continuously been relatively stable.
Notwithstanding the positive outlook for long-term future global energy demand, near-term
investment decision making in numerous oil and gas-related facilities is becoming
unpredictable. The recovery of the Japanese economy is only moderate as demand has
not fully recovered following the increase of consumption tax, despite government fiscal
and monetary policies easing and the depreciation of the Yen in global financial markets.
Under such circumstances, the Group has continued to strengthen its core business inthe conventional fields of oil and gas, according to strategies defined in its Medium-Term
Management Plan. In parallel, the Group has accelerated expansion in new businessspheres including offshore and upstream business, new and renewable energy, such as
the Hydrogen Supply Chain, utilizing Chiyoda’s own technologies, and solar power
generation utilizing photovoltaic and concentrating solar power technology.
Ongoing projects including LNG plants in Australia, the USA and Russia, refinery projects
in Vietnam, Qatar and Venezuela, the Mongolian international airport project and LNG
receiving terminals and photovoltaic power generation systems in Japan have all
progressed properly.
Consequently, consolidated new orders for the fiscal year amounted to 746,791 million
yen (26.6% increase year on year). The backlog and revenues were 1,416,901 million yen(32.1% increase) and 480,979 million yen (7.8% increase) respectively.
The operating income amounted to 21,466 million yen (1.8% increase), ordinary income
to 22,271 million yen (2.5% decrease year on year), and net income resulted in 11,029
million yen (18.0% decrease).
The decrease in incomes resulted from the increase in selling, general and administrative
expenses, equity in losses of associated companies, delays in recovery of overseas
subsidiaries and reversal of deferred tax assets due to tax rate reduction.

Highlights during this period for each segment are summarized hereunder:

LNG Plants/Other Gas Related Works
The Group has been moving forward with the Engineering, Procurement and Construction(“EPC”) works for LNG plants in Australia, the USA and Russia, and Front End
Engineering Design (“FEED”) works in Indonesia, Mozambique, Canada and the USA, allof which have progressed properly. Our Qatari subsidiary has been executing theEngineering, Procurement and Construction management (“EPCm”) works for the
maintenance and modification of existing LNG and gas processing plants, most of whichwere originally built by the Group. In Japan, two LNG receiving terminal projects havebeen completed and a further one is in the execution phase. Modification studies andconstruction works for existing plants have been awarded and under execution. The
Group will continue to pursue opportunities within LNG plants and other gas-related fields
as the Group’s core business, whether onshore or offshore, overseas or domestic, andconventional or unconventional.
Petroleum/Petrochemicals/Gas Chemicals
The Group was awarded an Engineering, Procurement, Construction and Commissioning(“EPCC”) contract for a Residue Fluid Catalytic Cracking (RFCC) plant in Malaysia. EPC
works have been ongoing for a refinery and petrochemical complex in Vietnam, a refinery
project in Qatar and the Engineering, Procurement support and Construction
management (“EPsCm”) work for heavy crude oil upgrading facilities in Venezuela.
Additionally, our subsidiary in Singapore has been performing project management
services under an Enterprise Framework Agreement for downstream projects within Asia.
3

In Japan, we have completed an EPC work for a Trans-Alkylation Unit and continued toperform diagnosis of existing facilities, maintenance and upgrading works, studies andconstruction works aimed at facility energy savings, and studies to strengthen theinfrastructure of a refinery against possible catastrophe damage.
Mining/Mineral Refining/General Chemicals/Industries/Environment
The Group has been moving forward with an EPC execution of the international airport inMongolia and newly awarded one in the Philippines, and the preparation of tenders for
future transport infrastructure projects. In an effort to expand its business into mediumsmall sized water treatment systems, the Group is operating a demonstration plant for anindustrial wastewater treatment/water recycling system in Saudi Arabia and is establishinga framework within the Group to execute these works in the Middle East and Asia.
Meanwhile, we are also responding to the expansion in demand of overseas Japaneseclients’ businesses in non-hydrocarbon fields. In Japan, the Group has been awarded anumber of EPC works for large-scale photovoltaic power generation systems and further
business opportunities are expected in this field. In pharmaceutical industry, the Groupwas newly awarded EPC works for manufacturing facilities of active pharmaceuticalingredient and vaccine. The Group also executed several EPC works for manufacturing
facilities of active pharmaceutical ingredients and nanotechnology research development
facilities in cooperation with industry, government and academia.
New Business Fields
The Group, in cooperation with our strategic alliance partner Xodus Group, has started
providing integrated services in the offshore/upstream field especially for Japanesecustomers. The Engineering, Procurement, Construction and Installation (“EPCI”)
execution of a floating production unit in Indonesia is in progress. The Group is actively
proceeding with business activities in the Subsea/Subsurface Engineering field. As partof this strategy, the Group has formed a new joint venture company with Xodus Groupand Saipem International BV in order to enter into the subsea engineering business, while
the Group also invested in a company established to develop commercially viable
technology for exploiting seabed methane hydrate. As for the concentrating solar powersystem, the Group continues to operate a demonstration plant in Italy with the aim ofdeveloping business opportunities in this field. Furthermore, we have developed our own
technology to transport and deliver large volumes of hydrogen and are actively
collaborating with various parties in order to establish a hydrogen supply chain to achievea hydrogen-based society.
Moreover, the Group is considering to focus newly on the growing market for life sciencefield symbolized by iPS cells, applying our pharmaceutical and medical technologies.
Outlook for the Next Fiscal Year
With its highest backlog of contracts, the Group will continue to work diligently on theexecution of existing large projects in Australia, Russia and U.S. which enhance its corebusiness. To materialize The Medium-Term Management Plan, the Group will also
continue to accelerate our growth strategy to diversify the business portfolio byexpanding new business fields.
In consideration of these circumstances, and assuming an exchange rate of ¥120/dollar,
our forecasts for the fiscal year ending March 31, 2016 include 350.0 billion yen inconsolidated new contracts and 600.0 billion yen in revenues. Our forecast for the
consolidated operating profit is 20.0 billion yen, consolidated ordinary income is 22.0
billion yen, and the consolidated net income is 12.0 billion yen.

4(2) Analysis of Financial Condition
1) Assets, Liabilities and Net Assets
Assets
While notes receivable, accounts receivable from completed construction contracts andsecurities decreased by 19,164 million yen and 25,999 million yen respectively from theprevious fiscal year, current assets increased by 35,481 million yen due to a 25,841 million
yen increase in costs on uncompleted construction contracts and a 55,388 million yen
increase in jointly controlled assets of joint venture. Non-current assets increased by 5,069
million yen due to a 3,012 million yen increase in investment securities. Total assets
increased by 40,550 million yen.
Liabilities
While notes payable and accounts payable for construction contracts decreased by 7,739
million yen, total liabilities increased by 30,175 million yen from the previous fiscal year due
to a 43,686 million yen increase in advances received on uncompleted construction contracts.
Net Assets
Net assets were 208,405 million yen as a result of a 6,305 million yen year-on- year
increase in retained earnings. The equity ratio decreased 1.3 points year-on-year to 40.0%.
2) Cash Flow
Net cash from operating activities showed a 24,145 million yen decrease due to a 55,246
million yen increase in the jointly controlled assets of joint venture and 12,550 million yen intaxes payable, although 22,012 million yen in income before income taxes and minority
interests and a 29,194 million yen increase in working capital (total in notes and accounts
receivable-trade, costs on uncompleted construction contracts, notes and accounts
payable-trade and advances received on uncompleted construction contracts).
The jointly controlled assets of joint venture are shown on the JV balance sheet as theassets controlled by Chiyoda whereas, in real terms, it is equivalent to the portion of thecurrent deposit balance under the JV names that is allocated to Chiyoda.
Cash flow from investing activities
Net cash from investing activities was a negative 5,444 million yen mainly due to 3,872
million yen expenditure for purchase of shares of subsidiaries resulting in change in scopeof consolidation and 1,245 million yen purchase of property, plant and equipment andintangible assets.
Cash flow from financing activities
Net cash from financing activities was a negative 4,569 million yen due to 4,139 million yen
paid in dividends and other factors.
As the result of the above factors, the account balance for the fiscal year for cash and cash
equivalent was 113,246 million yen which was a year-on- year decrease of 32,057 million
yen.
Cash Flow IndicesFiscal years ended
March 312011

Equity ratio
(%)
43.9%

Debt repayment period(Years)–Interest coverage ratio(Times)
–

2012

46.0%

0.2

267.9

2013

43.3%

0.7

68.6

2014

41.3

–

–

2015

40.0%

–

–

Notes

(Shareholders’ equity –minority interests)/Total
assetsInterest-bearing
debt/Net cash provided
by operating activities

Net cash provided byoperatingactivities/Interest
expense5

Note: The debt repayment period and interest coverage ratio for the period both ended
March 31, 2015, 2014 and 2011 are omitted due to there being a negative cash flow fromoperating activities.
(3) Dividend Policy and Current/Next-Period Dividend Payments
Our basic policy for dividends is set to meet a payout ratio of 30% or above of consolidated
net income. This policy supports our desire to return profits to our shareholders, whilebuilding a stronger financial base by which we can finance our business growth.
We have set the dividend at 13.0 yen per share for the fiscal year ended March 31, 2015.
As for the next fiscal year, we plan a year-end dividend per share of 14.0 yen.
(4) Business Risks
The following risks may significantly impact the Chiyoda Group’s business operations,finances and our responses to such. These risks have the potential to impact investor
decision making related to investment. Recognizing these risks, the Group has implemented
risk reduction strategies and plans to minimize consequences when such events occur.
The risks discussed below are those we recognize as of the date of the fiscal year ended.
(a) Changes in the Business Environment; Economic, Social and Political Situations
Various factors may require that modifications be made to clients’ investment plans, projectsuspension, delay or review. These factors include changes in global economic, social andpolitical environments, economic sanctions, evaluation of home country energy policies andcommodity prices such as oil and LNG prices: all factors which may affect the Group earnings.
Changes in economic, social and political environments for clients, subcontractors, suppliers
and service providers could affect the group’s project execution plans, profitability and,ultimately, financial strength.
The Group monitors global economic and social trends for potential impact on business andstrives to reduce such risk through rigorous contract negotiations. Due diligence is executedfor subcontractors, vendors and service providers and remedial action in the supply chain
actioned if necessary.
(b) Earthquakes and Natural Disasters, Terrorism, Wars and Other Force Majeure
EventsForce Majeure events such as earthquakes, natural disasters, terrorism and wars have thepotential to materially impact project sites or business locations. Disruption issues may
include personnel life crisis, delays in equipment and materials delivery and/or suspensionof field work.
The Group values human life and securing safety as a paramount priority and has
established a permanent body, the Crisis Management Unit, to compile and analyze
information to prevent human suffering or harm. The Group has established, and isreinforcing, the crisis management system, which advocates the employment, where
necessary, of professional security advisors in regions necessitating particular attention. .
Additionally, the Group maintains systems to rapidly react to situations and to respond to
emergencies immediately, including consulting with the clients and/or the parties concerned
to minimize force majeure risks.
The Group has formulated a Business Continuity Plan (BCP) for unexpected events such aslarge scale earthquake in readiness to act to act smoothly in the initial stage and executepriority tasks thereafter. In this way, the Group has been readily available to add our value inthe business continuity.
(c) Cost of Equipment and Materials
Under certain contractual models, the Group is exposed to material/equipment cost
fluctuation risk due to the time difference between plant or material quotation and purchase.
Specifically the price of steel, which constitutes a major percentage of plant construction,
could be severely impacted by a rise in commodity prices such as coal and iron ore. Future
market prices of copper, nickel, aluminum and zinc are similarly unpredictable.
The Group avoids these risks (or minimizes the impact) by diversifying supply sources,
placing orders early, maintaining alliances with major vendors/suppliers and analyzing
6market trends.
(d) Construction Workers/Equipment and Materials
Projects may experience delays and cost impacts if sufficient construction labor, equipment
and materials or other resources required for a project cannot be sufficiently procured.
The Group avoids this risk (or minimizes the impact) by applying diverse construction
methodologies, such as modular construction, in areas where materials and/or adequately
qualified labor is scarce and by establishing communication and collaboration with reliable
subcontractors, vendors and suppliers. If a plant’s construction is suspended due to labor
disputes or similar, the Group minimizes risk by executing appropriate actions in cooperation
with clients and local authorities.
(e) Plant Accidents
Personnel risk, the consequences of which could be serious for the Group’s operating
capability, is inherent in the construction industry.
Safety is of paramount importance to the Group, reinforced by the maxim “Safety is the Corevalue”. Through comprehensive Risk Identification and Management procedures, reinforcedby positive collaboration with clients, designers, subcontractors and vendors, all possible
risks are identified at every stage of project delivery, from feasibility through design andconstruction, and actions to negate or mitigate identified risks are implemented.
(f) Exchange Rate Fluctuations
Some construction projects may involve payment settlements (subcontractors, vendors andsuppliers) in a currency that does not correlate with the currency received from the client for
the work. In such cases, exchange rate fluctuations can have an impact on earnings. The
Group avoids/minimizes exchange rate risk by reserving against construction payments in
multiple foreign currencies and by entering into exchange rate forward contracts.
(g) Compliance-related Risks
Intrinsic to the Group’s global operations, is the requirement to comply with local laws, acts
and regulations, both domestically and overseas. Penalties or suspicious action resulting
from non-compliance issues could have significant consequences on a project’s execution
or the business operation of the Group.
The Group’s comprehensive employee training regime such as group training and e-learning,
to any stakeholder concerns, including authorities concerned and clients, both domestic andoverseas, and attention to detail in complying with local laws, acts or regulations, or rules
related to business operations, minimizes compliance related risk issues. Additionally, theGroup has established a Compliance Committee under the direct control of the Executive
Committee to negate such risks and endeavors to annul potential compliance risks bycommunicating senior management edicts into the work process under the heading “Codeof Conduct of the Group.”(h) Information Security Risk
The Group takes great care in managing any information obtained from clients,
subcontractors, equipment and materials suppliers and other service providers that isnecessary in the performance of its business, and also possesses confidential information
related to technologies, sales, and other businesses. Many core corporate operations andbusiness transactions have been conducted by making full use of the IT systems at global
subsidiaries. However, the Group businesses could be subject to system failure,
information leaks and loss of important business information due to computer virus
infections, external unauthorized access and cyber-attack. The Group, including the main
subsidiaries and global headquarters, has achieved ISMS (Information Security
Management System) certification and implements exhaustive information security
management which includes training, auditing and defensive measures through its
business continuity plan.

76. Management Policies(1) Basic Management Policies
The corporate philosophy of the Chiyoda Group is to “enhance our business in aiming forharmony between energy and the environment and contribute to the sustainable
development of a society as an integrated engineering company through the use of ourcollective wisdom and painstakingly developed technology”. The Group strives to conductbusiness that inspires trust and empathy from all of stakeholders, internal and external,
including shareholders, clients, subcontractors and vendors, employees, and society as awhole.
(2) The Medium-Term Management Plan, and Targets
To raise corporate value, the Group announced four-year business plan, “Seize the moment,
Open up new frontiers” on May 10, 2013, commencing from April 1, 2013 and concluding on
March 31, 2017.
(See http://www.chiyoda-corp.com/ir/en for our four-year plan and financial report)
The Medium-Term Management Plan includes the growth strategy and the operating
foundation strategy. The Group aims to maintain growth as a constant provider of the value
and service required by society and customers, by identifying current trends. The operating
foundation strategy provides the base to realize the growth and the sustainable
development of the Group.
During the fiscal year of 2014, the second year of the plan, the Group has focused upon
implementing specific action items in accordance with the key strategy. The Group willcontinue to implement the growth strategy by strengthening its core business anddiversifying its portfolio by expanding new business fields in order to achieve the expected
goals even in the changing business environment such as decline in investment due toplunge in oil prices.
The Group will adhere and respect Compliance, CSR (“Corporate Social Responsibility”)
and HSE (“Health, Safety and Environment”) commitments when implementing eachaction plan.
In addition, the Group aims to achieve the management indices announced in the plan.
(3) Challenges lying ahead (Focused Action Plans)
In the energy field, with which the Group has close links, preparations for investment innumerous gas related facilities are being encouraged by the continuing increase in medium
to long term energy demand, the shale revolution and the tide of the shift to gas. Meanwhile,
every management decision has to be made judiciously and cautiously because thefeasibility of each project becomes more difficult to evaluate than previously due to volatileenergy prices, the slowdown in the economy of emerging countries, and geo-politicalconcerns.
The Group will not merely correspond to the vigorous demand for investment in energy, butwill concentrate on the key policies aiming to continuously provide the service and value thatsociety may require in the fields where we are positioned in the first tier.
The Group aims to improve its corporate value by combining the growth strategy with thefoundation strategy especially for the development of human resources while enriching thequality of performance of the Group as a whole. The Group keeps improving its corporate
governance structure to make transparent and fair decisions in a firm and fast way with due
consideration to all the stakeholders including shareholders, clients, employees and the local
societies.
In the fiscal year of 2014, the midpoint of the plan, the Group secured a contract in Russia inthe LNG field which is our core business. Combined with previously secured projects in USA,
the Group is enhancing the operating foundation to steadily execute several mega projects
simultaneously. In addition, the Group has established a framework to globally provide its
services from consulting to FEED in the offshore and upstream field. The Group will continue
to expand to provide an important contribution to future revenues.

8

7.

Consolidated financial statements(1) Consolidated balance sheets (1/2)

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed
construction contracts
Securities
Costs on uncompleted construction contracts
Deferred tax assets
Jointly controlled assets of joint venture
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and vehicles
Accumulated depreciation
Machinery and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

9

As of March
31, 2014(Millions of yen)
As of March
31, 2015

37,86831,81573,00553,840107,499
33,826
18,868
127,466
10,565
ሺ3)409,096

81,49959,668
11,697
182,855
23,257
ሺ56)444,578

12,557
ሺ5,694)
6,862
944
ሺ404)
539
7,106
ሺ5,102)
2,003
5,265
286
14,95813,915(6,172)
7,742
721
ሺ340)
381
7,211
ሺ5,791)
1,419
5,266
16
14,826

12,395
7,113
19,50912,0347,450
19,48428,315
34
3,443
ሺ68)
31,724
66,192475,288

31,328
33
5,820
(231)
36,95071,261
515,839

Consolidated balance sheets (2/2)(Millions of yen)

Liabilities
Current liabilities
Notes payable, accounts payable for construction
contracts
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Advances received on uncompleted construction contracts

Provision for warranties for completed construction
Provision for loss on construction contracts
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for treatment of PCB waste
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 income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

10

As of March
31, 2014

As of March
31, 2015

145,392

137,652

1,283
4
5,513
80,182
507
4,002
4,261
20,531
261,679

991
4
1,366
123,869
364
3,988
3,905
22,197294,339

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

10,015
339
1,070
1,667
13,093
307,433

43,396
37,112
109,525
ሺ1,390)188,644

43,396
37,112
115,831(1,405)
194,934

4,920
648
2,486
ሺ287)
7,767
1,619
198,031475,2887,218
ሺ2,064)
5,229
1,076
11,4602,010
208,405
515,839

(2) Consolidated statement of income and comprehensive income(Consolidated statement of income)(Millions of yen)

Net sales of completed construction contracts
Cost of sales of completed construction contracts
Gross profit on completed construction contracts
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using
equity method
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary losses
Loss on valuation of investment securities
Retirement benefit expenses
Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Income before minority interests
Minority interests in income (loss)
Net income

11

Fiscal year ended
March 31, 2014

Fiscal year ended
March 31, 2015

(From April 1, 2013
to March 31, 2014)(From April 1, 2014
to March 31, 2015)

446,147
404,685
41,462
20,38321,079480,979
435,327
45,651
24,185
21,466

1,411
1,178
92
2,683

1,522
1,588
148
3,259

233

255

374

783

145
170
924
22,837

1,182
233
2,454
22,271－299
299
22,538
13,101
ሺ3,773)
9,327
13,210ሺ236)
13,447258－
258
22,012
6,257
4,542
10,799
11,212
183
11,029(Consolidated statement of comprehensive income)

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to minority interests

12(Millions of yen)
Fiscal year ended
March 31, 2014

Fiscal year ended
March 31, 2015

(From April 1, 2013
to March 31, 2014)(From April 1, 2014
to March 31, 2015)

13,21011,212

ሺ1,664)
ሺ2,242)
3,625
－

2,298
ሺ2,712)
2,815
1,364

104

142

ሺ176)
13,034

3,908
15,121

13,087(53)

14,722398

(3) Consolidated statement of cash flows (1/2)(Millions of yen)

Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in provision for loss on construction
contracts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of (profit) loss of entities accounted for using equity
methodLoss (gain) on valuation of investment securities
Loss (gain) on sales and retirement of non-current assets
Decrease (increase) in notes and accounts receivable trade
Decrease (increase) in costs on uncompleted construction
contracts
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received on uncompleted
construction contracts
Decrease (increase) in accounts receivable - other
Decrease (increase) in jointly controlled asset of joint
ventureIncrease (decrease) in accrued consumption taxes
Increase (decrease) in deposits received
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Proceeds from redemption of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Purchase of investment securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Payments of loans receivableCollection of loans receivable
Other, net
Net cash provided by (used in) investing activities

13

Fiscal year ended
March 31, 2014
(From April 1, 2013
to March 31, 2014)

Fiscal year ended
March 31, 2015
(From April 1, 2014
to March 31, 2015)

22,538
3,196
825
ሺ12)

22,012
3,569
1,469
216

ሺ4)

(170)

2,534

ሺ47)

ሺ127)
ሺ768)
ሺ2,590)
233
ሺ224)

(381)
100
(3,111)
255
(499)

374

783

－
31

258
338

ሺ1,896)

21,217

ሺ16,974)(25,282)

23,650

ሺ9,759)

ሺ2,111)43,019355

ሺ3,637)

ሺ31,955)

ሺ55,246)

2,163
ሺ2,141)
ሺ2,186)
ሺ5,090)1,877
ሺ255)
ሺ13,709)
ሺ17,177)(1,234)
ሺ1,710)
ሺ6,720)
ሺ14,560)
3,220
ሺ255)
ሺ12,550)
ሺ24,145)192
2,400
ሺ1,981)90
ሺ3,294)
ሺ7)
ሺ4,046)－－
ሺ1,441)146(2,431)－
ሺ1,245)

ሺ9,134)－

ሺ1,158)10141
ሺ16,796)

ሺ605)
118
14
(5,444)

Consolidated statement of cash flows (2/2)(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly
consolidated subsidiary
Cash and cash equivalents at end of period

14

Fiscal year ended
March 31, 2014
(From April 1, 2013
to March 31, 2014)

Fiscal year ended
March 31, 2015
(From April 1, 2014
to March 31, 2015)

11
ሺ264)
ሺ4,914)
ሺ81)
ሺ5,249)3,974
ሺ35,249)
180,229

ሺ390)
ሺ4)(4,139)ሺ34)
ሺ4,569)2,101
ሺ32,057)
145,303

323－

145,303113,246

8.

Production, Contracts and Sales

Apr. 1, 2013 —Mar. 31, 2014
New
Backlog of
Net sales
contracts
contracts(ratio)(ratio)(ratio)Millions of yen
Apr. 1, 2014 —Mar. 31, 2015
New
Backlog of
Net sales
contracts
contracts(ratio)(ratio)(ratio)585,41399.2%

441,61599.0%

1,071,910
100.0%

740,887
99.2%

476,499
99.1%

1,415,170
99.9%

LNG Plants

436,96374.1%

203,03445.5%

755,64370.5%

550,81373.8%

257,87153.6%

1,102,951
77.9%

Other Gas Related Works

14,286
2.4%

47,493
10.7%

21,5852.0%

49,604
6.6%

38,0497.9%33,254
2.4%

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

49,181
8.3%

75,97617.0%

203,356
19.0%

49,061
6.6%

106,66522.2%

169,953
12.0%

393
0.1%

4,302
1.0%

113
0.0%

11,446
1.5%

1,283
0.3%

10,276
0.7%

41,042
7.0%

94,33021.1%

42,5604.0%

39,6305.3%

41,865
8.7%

33,113
2.3%

37,342
6.3%

13,3303.0%45,1194.2%

35,456
4.7%

23,372
4.9%

63,906
4.5%

6,202
1.0%

3,147
0.7%

3,530
0.3%

4,874
0.7%

7,390
1.5%

1,714
0.1%

4,454
0.8%

4,532
1.0%

308
0.0%

5,903
0.8%

4,479
0.9%

1,731
0.1%

Total

589,867
100.0%

446,147
100.0%

1,072,218
100.0%

746,791
100.0%

480,979
100.0%

1,416,901
100.0%

Domestic

104,69017.7%

128,74328.9%

103,2449.6%

110,989
14.9%

113,34123.6%

100,218
7.1%

Overseas485,177
82.3%

317,404
71.1%

968,974
90.4%

635,801
85.1%

367,63876.4%

1,316,683
92.9%

Engineering

OthersOther Business15