Translation

February 9, 2017

Consolidated Financial Results
for the Three Months Ended December 31, 2016
Company name: CHIYODA CORPORATION
Listing:First Section of the Tokyo Stock Exchange
Stock code:
6366
URL:
http://www.chiyoda-corp.com/
Representative: Keiichi Nakagaki, Senior Vice President
Inquiries:
Nobuo Sekita, SL, Accounting Section
TEL:+81-45-225-7745 (from overseas)
Scheduled date to file Quarterly Report: February 13, 2017
Preparation of Quarterly Supplementary Explanation Material: Yes
Quarterly Financial Results Presentation Held: Yes (for Analysts and Institutional Investors)(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated performance for the three months ended December 31, 2016
(1) Consolidated operating results(Percentages indicate year-on-year changes)
Profit attributable toOperating income
Ordinary income
owners of parent
Millions ofMillions ofMillions of
% yen
% yen
% yen
%

Net sales
Millions ofyen

For the three months
435,116 (2.0)
10,411(31.8)(5,595)-(34,000)-ended Dec 31, 2016
For the three months
443,924 33.7
15,527(1.7)
14,481(0.1)
8,249 (0.4)
ended Dec 31, 2015
Note: Comprehensive Income (Loss): the three months ended Dec 31, 2016: minus 39,851 million yen (Loss)the three months ended Dec 31, 2015: 2,458 million yen / (79.2)%

For the three months
ended Dec 31, 2016
For the three months
ended Dec 31, 2015

Net income per share

Fully diluted net
income per share

Yen

Yen

(131.28)

-

31.85

-

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

As of Dec 31, 2016

471,848

159,667

33.5

As of March 31, 2016

528,219

202,128

37.9

Reference: Equity

As of Dec 31, 2016: 157,843 million yen

As of March 31, 2016: 200,166 million yen

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Chiyoda Corporation: Consolidated Financial Results for the Three Months Ended December 31, 2016

2. Cash dividends
Cash dividends per share
Record date

First quarter

Second quarter

Third quarter

Fiscal year-end

Yen

Yen

Yen

Yen

Yen

-

-

-

10.00

10.00

-

-

6.00

6.00

Fiscal year ended
March 31, 2016
Fiscal year ending
March 31, 2017
Fiscal year ending
March 31, 2017
(Forecast)

Annual-Note: Revision to the latest forecast announcement 2016: None

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2017(from April 1, 2016 to March 31, 2017)(Percentages indicate year-on-year changes.)
Profit attributable Net income per
Operating income Ordinary income
to owners of
shareparentNet sales

Fiscal year ending
March 31, 2017

Millions ofyen%Millions ofyen%

610,000(0.3)

18,000

12.4

Millions ofyen%Millions of
yen

%

Yen

0 (100)(36,000)--(139.01)

Note: Revision to the latest forecast announcement 2016: Yes (refer to the announcement dated February 9, 2017)

Notes(1) Changes in Significant Subsidiaries during the Period (changes in specified subsidiaries
accompanying changes in the scope of consolidation): None
(2) Adoption of Specified Accounting Methods for the Preparation of Quarterly Consolidated Financial
Statements: None
(3) Changes in Accounting Policies and Accounting Estimates / Restatements
a. Changes in accounting policies due to revisions of accounting standards, etc.: Yes
b. Changes in accounting policies other than a. above: Nonec. Changes in accounting estimates: None
d. Restatements: None
(4) Number of issued shares (common stock)a. Total number of issued shares at the end of the period (including treasury stock)
As of Dec 31, 2016
260,324,529 shares
As of March 31, 2016
260,324,529 sharesb. Number of treasury stock at the end of the period
As of Dec 31, 2016
1,347,584 shares
As of March 31, 2016
1,340,062 sharesc. Average number of shares during the period
For the three months ended Dec 31, 2016
258,980,896 shares
For the three months ended Dec 31, 2015
258,992,849 shares*Presentation of Implementation Status of Quarterly Review Procedure
The review procedure of quarterly financial statements based on the Financial Instruments and Exchange Law
has not been completed at the time of the disclosure of these Consolidated Financial Statements.
*Proper use of earnings forecasts, and other special directions
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable. Actual
business and other results may differ substantially due to a number of factors.

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Chiyoda Corporation: Consolidated Financial Results for the Three Months Ended December 31, 2016

Table of Contents for the appendices1. Qualitative Information Related to Consolidated Performance(1) Details of Business Performance(2) Details of Financial Status(3) Information on the Consolidated Earnings Forecasts and Other Future
Forecasts

445
6

2. Matters Related to Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period(2) Adoption of Specified Accounting Methods for the Preparation ofConsolidated Quarterly Financial Statements(3) Changes in Accounting Policies and Accounting Estimates/Restatements

66
6

3. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(2) Consolidated Quarterly Statements of (Comprehensive) Income
Consolidated Quarterly Statements of Income
Consolidated Statements of Income for the First Three Months
Consolidated Quarterly Statements of Comprehensive Income
Consolidated Statements of Income for the First Three Months(3) Notes on Consolidated Quarterly Financial Statements(Notes on Assumptions for a Going Concern)(Notes on Significant Changes in the Amount of Shareholders’ Equity,
if Applicable)

77
9

4. Production, Contracts and Sales

11

3
Chiyoda Corporation: Consolidated Financial Results for the Three Months Ended December 31, 2016610

1. Qualitative Information Related to Consolidated Performance(1)
Details of Business Performance
During the first nine months of the fiscal year ending March 2017 (third quarter of the fiscal year), thebusiness environment surrounding the Chiyoda Group remained challenging. Although there was the
anticipation that the price of crude oil had bottomed out as a result of the conclusion of an agreementwith the Organization of the Petroleum Exporting Countries (OPEC) on production cutbacks, thelingering uncertainty persisted, mainly due to concerns over the repeated occurrence of terrorist
attacks in various parts of the world and the effects of the Presidential election in the United States,
whose outcome was unexpected by the majority of people. The balance of supply and demand forliquefied natural gas (LNG) remained considerably loose as a result of the completion of new plants inAustralia and the United States, while the final decision on investments in large LNG projects that theGroup expected was slightly delayed. Moreover, the Japanese economy saw that companies
remained cautious about capital investments despite the growing expectations for the government’s
economic stimulus measures.
In this environment, having entered the final year of the Group’s Medium-term Management Plan, theGroup worked to improve its operating results for the fiscal year under review by further accelerating
the growth strategies and the development of its business foundations, with an aim to enhance its
corporate value. In the LNG business, the Group’s core business, the Group secured a new contract inIndonesia in addition to carrying out other large-scale projects around the world. It aggressively
tackled highly feasible expansion projects and other new projects. In this way, it maintained a superiorbusiness position. On the other hand, EMAS CHIYODA Subsea Limited (“ECS”), to which the Group
had made an equity participation in March 2016, engaged in engineering, procurement, construction
and installation (EPCI) for subsea projects, has faced the larger-than-anticipated slowdown of thesubsea market. Having thoroughly evaluated the value of the stocks in hand and examined thepossibility of future recovery of the loan rendered, the Chiyoda group recorded non-operating expenseand extraordinary losses.
For the third quarter of the fiscal year, on a consolidated basis, new contracts amounted to 285,809
million yen, up 21.9% year on year, contract backlog stood at 933,956 million yen, down 19.8% fromthe end of the previous fiscal year, and net sales of completed construction contracts came to 435,116
million yen, down 2.0% year on year. Operating income amounted to 10,411 million yen, down 31.8%
year on year. In addition, due to the expense / loss related to ECS as mentioned above, ordinary
income (loss) stood at minus 5,595 million yen, (ordinary income of the third quarter in the previous
fiscal year: 14,481 million yen), and profit (loss) attributable to owners of parent came to minus 34,000
million yen (profit of the same period in the previous fiscal year: 8,249 million yen).
The Group sincerely regrets the recorded results that significantly underperformed the results
forecasts announced at the beginning of the fiscal year under review. A company-wide effort has been
determined to improve earnings through the thorough implementation of the evaluation of investment
projects and the business management of the Group companies so that it will be able to regain thetrust of stakeholders.
The summary of operations for the engineering business, the reportable segment of the Company, is
as follows.
LNG Plants/Other Gas Related Work
Overseas, the Group is earnestly performing engineering, procurement, and construction (EPC) workfor LNG plants in Indonesia, Russia, the United States and Australia as well as front-end engineeringand design (FEED) work for LNG plants in the United States. Moreover, in Mozambique, where theGroup was selected as an EPC contractor for an LNG plant in the previous year, the Group is
executing part of the pre-contract work. In addition, in Qatar, pursuant to the long-term service
agreement, the local Group company is performing EPC work for helium recovery facilities andengineering, procurement and construction management (EPCM) work for the modification andrevamping of LNG and gas processing plants previously built by the Company.
In Japan, the Group is performing EPC work for the modification and revamping of the LNG receiving
terminals built by the Company.
Refinery/Petrochemical/Metal
4
Chiyoda Corporation: Consolidated Financial Results for the Three Months Ended December 31, 2016

Overseas, the Group is performing engineering, procurement, construction and commissioning(EPCC) work for a residue fluid catalytic cracking (RFCC) project in Malaysia, and EPC work for an oil
refinery and petrochemical complex in Vietnam. In addition, EPC work for an oil refinery in Qatar wascompleted in December. Moreover, the Group company in Southeast Asia was awarded EPC work forpetrochemical tank terminal facilities in Malaysia, and is performing project management work under
the Enterprise Framework Agreement for downstream projects, such as the construction of refineries
and chemical facilities in Asia.
In the metal business, the Group is performing EPC work for a titanium sponge plant in Saudi Arabia.
In Japan, the Group continues to perform EPC work to facilitate inter-refinery cooperation and optimize
the configuration of refineries and other facilities for petroleum companies. The Group also continues
to perform work to renovate and revamp the existing facilities in compliance with the Basic Act for
National Resilience, as well as work for petrochemical production facilities and other existing facilities
to improve energy efficiency and repair or replace aging equipment.
Pharmaceuticals/Biochemistry/General Chemistry/Environment/Infrastructure
In the transportation infrastructure business, the Group is performing EPC work for the construction ofa new international airport in Mongolia and the New Bohol Airport in the Philippines. In the nonhydrocarbon business, the Group is also earnestly carrying out sales activities for Japanese clients
who plan to develop overseas operations. Moreover, the Group concluded an agreement to provide
the license of its proprietary Chiyoda Thoroughbred 121 (CT-121) Process to Larsen & Toubro Limitedin India for flue gas desulfurization facilities at coal-fired power plants in India whose economy was
experiencing rapid growth.
In Japan, the Group is performing EPC work for flue gas desulfurization systems for a coal-fired power
plant. The Group is also working to receive and perform EPC work for large-scale photovoltaic (megasolar) power plants nationwide. The Group will continue to work to win projects by strengthening theGroup’s business execution structure and promoting sales activities. The Group also continues toperform EPC work for food factories that comply with the latest food safety and hygiene standards. In
the pharmaceuticals-related business, the Group is performing EPC work mainly for advanced
injection production facilities, drug substance production plants and bio-medicine production facilities,
all of which can include high-potency pharmacologically active agents and therapeutic antibodies.
New Business Fields
In the offshore and upstream business, ECS, under a consortium with Larsen & Toubro in India wasawarded an EPCI contract for an offshore gas field development project in Saudi Arabia in July 2016,
while Xodus Group Ltd. in the United Kingdom, with which the Group has established a strategic
capital alliance, is providing services, such as engineering and consulting, mainly for natural resource
development companies that engage in offshore development projects. Although the Group hasrecorded a certain losses in this business field, we regard the offshore and upstream as promisingbusiness. The group will keep recognizing this field as one of its key business, based on the Group’s
corporate philosophy “aiming for harmony between energy and environment”. Moreover, in the newenergy-related business, the Group plans to perform a demonstration project in 2020, in which thehydrogen that is procured in Asia will be used as fuel in electric power plants in Japan. This will
establish a hydrogen supply chain business that uses technologies for storing and transporting thelarge amount of hydrogen that the Company has developed internally, with an aim to build a hydrogenenergy based society.

(2)
Details of Financial Status
AssetsTotal current assets decreased 21,936 million yen. This mainly reflected the decline of 10,118
million yen in jointly controlled assets of the joint venture and 22,175 million yen in cash anddeposits. Total non-current assets decreased 34,435 million yen, mainly reflecting a decline of
35,038 million yen in investment securities. As a result, total assets decreased 56,371 million
yen from the end of the previous consolidated fiscal year.
Liabilities
Total Liabilities decreased 13,910 million yen from the end of the previous consolidated fiscal
year. This was mainly attributable to an increase of 12,752 million yen in notes / accounts
payable and increase of 23,764 million yen in Provision for loss on business of subsidiaries,
5
Chiyoda Corporation: Consolidated Financial Results for the Three Months Ended December 31, 2016

while decrease of 48,381 million yen in advances received on uncompleted construction
contracts.
Net assets
Total net assets stood at 159,667 million yen. This mainly reflected a decrease of 36,590
million yen in retained earnings as a result of a recording of dividends paid and loss
attributable to owners of parent.
(3)
Information on the Consolidated Earnings Forecasts and Other Future Forecasts
Consolidated earnings forecasts for the fiscal year ending March 31, 2017, originally
announced on May 12, 2016 has been revised. The details of the revision are stated in“Notice of Revisions to the Forecast of Consolidated Results” issued on February 9, 2017.
The Company has revised the assumed exchange rate to ¥115 per U.S. dollar.
2. Matters Related to Summary Information (Notes)(1) Changes in Significant Subsidiaries during the Period
Not applicable(2) Adoption of Specified Accounting Methods for the Preparation of Consolidated Quarterly
Financial Statements
Not applicable(3) Changes in Accounting Policies and Accounting Estimates/Restatements(Changes in accounting policies)(Application of Practical Solution on a Change in Depreciation Method Due to Tax Reform 2016)
Following the revision to the Corporation Tax Act, the Company adopted the “Practical Solution on a
Change in Depreciation Method Due to Tax Reform 2016” (ASBJ PITF No. 32, June 17, 2016),
effective from the first consolidated quarter of the fiscal year under review, and changed thedepreciation method for facilities attached to buildings and structures acquired on or after April 1,
2016, from the declining balance method to the straight line method.
The effects of the changes on the Company’s profits and losses are limited.

6
Chiyoda Corporation: Consolidated Financial Results for the Three Months Ended December 31, 2016

3. Consolidated quarterly financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2016

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

As of Dec 31, 2016

137,715

115,539

69,29678,236

6,999

7,999

35,05328,567

179,360

169,242

28,889(2,285)455,030

34,955(1,446)
433,094

7,137
5,266
1,538

6,653
5,266
1,264

13,942

13,183

11,0688,900

43,071
5,487
(379)

8,032
8,942
(305)

48,178

16,66973,189528,219

38,753471,848

7
Chiyoda Corporation: Consolidated Financial Results for the Three Months Ended December 31, 2016

(Millions of yen)
As of March 31, 2016

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

As of Dec 31, 2016

150,078

162,831

333

320

5

3

2,841

3,219

135,667

87,285

337

219

3,160

3,650

3,527

2,064

--

23,76415,155311,106

15,435
298,795

10,009
340
2,134
2,500
14,985
326,091

10,004
340
1,893
1,147
13,385
312,181

43,396
37,112
115,839(1,422)
194,926

43,396
37,112
79,249(1,428)158,330

2,386

300

(1,618)

1,686

4,171

(2,888)

300

416

5,240

(486)

1,961
202,128
528,219

1,823
159,667
471,848

8
Chiyoda Corporation: Consolidated Financial Results for the Three Months Ended December 31, 2016

(2) Consolidated statement of income and comprehensive income(Consolidated statement of income)(Millions of yen)Three months ended Three months ended
Dec 31, 2015
Dec 31, 2016

Net sales of completed construction contracts
Cost of sales of completed construction contracts

443,924
411,518

435,116
408,680

Gross profit on completed construction contracts

32,40526,436

Selling, general and administrative expenses

17,14816,024

Operating income

15,257

10,411

1,068
1,010

1,156
820

151

205

2,230

2,182

166

157

1,192

14,649

1,576
71

3,297
84

3,006

18,188

Ordinary income

14,481(5,595)Extraordinary income
Gain on sales of investment securities

2,666

1,965

2,666

1,965

-

23,764-

1,146

Valuation loss of investment securities-

393

Total Extraordinary Loss-

25,304

Profit before income taxes

17,147(28,934)

Income taxes - current
Income taxes - deferred

7,804
1,061

10,725(5,544)

Total income taxes

8,865

5,181

Profit8,281(34,115)

31

(115)

8,249

(34,000)

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

Total extraordinary income
Extraordinary Loss
Provision for loss on business of subsidiaries
and associates
Loss on sales of subsidiaries securities

Profit (loss) attributable to non-controlling interests
Profit attributable to owners of parent

9
Chiyoda Corporation: Consolidated Financial Results for the Three Months Ended December 31, 2016

(Consolidated statement of comprehensive income)(Millions of yen)Three months ended Three months ended
Dec 31, 2015
Dec 31, 2016

ProfitOther comprehensive income

8,281(34,115)

Valuation difference on available-for-sale securities
Deferred gains or losses on hedges(5,483)696(2,086)3,321

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income(865)(4,500)

(96)

115

(72)

(2,586)(5,822)(5,736)

2,458(39,851)

2,496(39,727)

(37)

(124)

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to noncontrolling interests(3) Notes on Consolidated Quarterly Financial Statements(Notes on Assumptions for a Going Concern)
None(Notes on Significant Changes in the Amount of Shareholders’ Equity,
if Applicable)
None

10
Chiyoda Corporation: Consolidated Financial Results for the Three Months Ended December 31, 2016

4.

Production, Contracts and Sales
Millions of yen
From Apr. 1, 2015 to Dec. 31, 2015
New
Backlog of
Net sales
contracts
contracts(ratio)(ratio)(ratio)Engineering
LNG Plant
Gas Development/
Processing/Receiving
Refinery/Petrochemical/
Metal
Pharmaceutical/Biochemistry/
ChemicalEnvironment/New Energy/
Infrastructure
OthersOther Business

From Apr. 1, 2016 to Dec 31, 2016
New
Backlog of
Net sales
contracts
contracts(ratio)(ratio)(ratio)231,635(98.8%)

440,969(99.3%)

1,192,048(100.0%)283,195(99.1%)

432,502(99.4%)

933,956(100.0%)147,683

262,463981,696

166,787

306,896664,672(63.0%)(59.1%)(82.4%)(58.3%)(70.5%)(69.0%)

4,549

14,503

20,524

6,498

9,725

14,046(1.9%)(3.2%)(1.7%)(2.3%)(2.2%)(1.5%)

42,918(18.3%)

108,643(24.5%)

113,879(9.5%)

32,265(11.3%)

73,343(16.9%)

157,514(16.9%)

15,872(6.8%)

21,761(4.9%)

24,843(2.1%)

30,761(10.8%)

21,731(5.0%)

38,362(4.1%)

15,97430,972

47,21237,92917,12571,182(6.8%)(7.0%)(4.0%)(13.3%)(3.9%)(7.6%)

4,636

2,624

3,891

8,952

3,679

8,177

(2.0%)(0.6%)(0.3%)(3.1%)(0.9%)(0.9%)

2,833(1.2%)

2,955(0.7%)-

2,614(0.9%)

2,614(0.6%)-

234,469

443,924

1,192,048

285,809435,116

933,956(100.0%)(100.0%)(100.0%)(100.0%)(100.0%)(100.0%)

Domestic

63,994(27.3%)

75,193(16.9%)

88,574(7.4%)

105,221(36.8%)

73,311(16.8%)

126,252(13.5%)

Overseas

170,474(72.7%)

368,730(83.1%)

1,103,473(92.6%)

180,587(63.2%)

361,804(83.2%)

807,703(86.5%)

Total

Note1: The backlog of contracts for the three months ended June 30, 2016 includes a decrease due to changes
in construction contracts acquired in prior fiscal years, and an increase due to foreign exchangetranslation adjustments.
Note2: The total amount of the above table does not include consumption tax.

11
Chiyoda Corporation: Consolidated Financial Results for the Three Months Ended December 31, 2016