Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

The presentation was held in Japanese.

August ４ 2022

This document is a translation/summary

IR, PR & Sustainability Advanced Section

for reference only.

Corporate Services Department
Chiyoda Corporation
Summary of a Q&A session following the Presentationof the Financial Results for Fiscal Year Ending March 31, 2023
This is a summary of a Q&A session following the presentation (telephone conference) ofChiyoda Corporation’s (Chiyoda) financial results for fiscal year ending March 31, 2023,
released on August 1, 2022.
Question
1Answer

Net sales of completed
construction contracts
Is the Q1 result for net sales in There were no major cost increases in Q1, mainly
line with the 15% forecast?

because of only minor equipment procurement,
and cost progress in accounting terms wasAre

there

any

impacts

on therefore relatively low. We forecast an increase inconstruction progress?

net sales in line with the full-year forecast from Q2
as the cost progress is scheduled to increase
based on actual construction progress.

２Gross profit margin
Why did the gross profit margin The main factor was improved profitability onof 8.6% exceed the full year specific projects in the energy sector as a one-off
forecast of 7%?

positive factor.
Construction completion on large scale projects
will increase from Q2 and the gross profit margin
on completed projects may reduce.

3

Countermeasures
Increasing

AgainstEquipment,

Material and Transportation
Costs
Pleaseadvisethecurrent Chiyoda has allowed specific contingencies forsituation of equipment, material increased equipment, material and transportation

1

Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

Question

Answerand transportation costs and costs.
Chiyoda’scountermeasures We will continue to work collaboratively with clients

against their increase in terms of and partners to minimize further impacts.
the impact on the gross profit
margin on completed projects.

COVID-19

costandschedule

impacts

arediscussed with clients under a force majeureframework.
4New orders
What is the current status and Because of Chiyoda’s unrivalled large project
timing of the order forecast for experience in Qatar and the fact that NFS LNG is
NFS LNG in Qatar?

an expansion of the NFE LNG project, we believe
NFS is a project where we can apply ouradvantage to maximum extent.
Stringent and comprehensive risk assessment isstill required to evaluate increasing equipment,material and transportation cost risks due toCOVID-19 and the geopolitical crisis in Ukraine.

5

Conducting

futureEPC

business.
What are your thoughts for Increased execution risks due to the recent trend
conducting future EPC business towards larger, longer and more complex projectsinterms

risk/reward?

ofimproving and the current instability of our external businessenvironment are major management issues.
EPC contractor financial positions are generally
not as robust as their international and national
clients in the oil and gas industry. Many contracts,
including LNG, are also lump-sum, increasing EPC
contractor exposure to market risks, such as cost
increases during construction. Although theserisks

cannotbetotally

eliminated,ourcomprehensive risk management procedures aredesigned to minimize risks as far as is reasonably
practicable. Chiyoda leverages its extensive EPC
strengths

2andexperience

whileworking

Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

Question

Answercollaboratively with clients who bear their fairdegree of risk.
Our competitive advantage in this business field is
oursuperior

engineering

andtechnologicalexpertise combined with our project management
experience. We therefore concentrate on projects
that allow us to share risk and profit accordinglyand enable us to utilize our strengths ofengineering and technological expertise andproject management experience to add value forour clients by delivering unique state-of-the-artsolutions.
Wearealsoestablishing

operationandmaintenance expertise using digital AI to offer ourclients whole-of-life solutions.

-EndPlease submit inquiries to:
IR, PR & Sustainability Advanced Section, Corporate Services Department
Tel. +81-45-225-7734

Note: Some additions and corrections have been made to simplify the content for readers.
Any projections included in these materials are based solely on information available at thetime this presentation was prepared. It is possible that actual results may vary significantly
from the projections due to a number of risk factors such as economic conditions. The results
projected here should not be construed in any way as being guaranteed by the Company.
Investors are recommended not to depend solely on these projections for making investment
decisions.

3