Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/enThe presentation was held in Japanese. This

Yokohama, May 24, 2019

document is a translation/ summary for

IR, PR & CSR Department

reference only.

E-Mail: ir@chiyodacorp.com

Transcript (Translation) of the Presentation
Financial Results for the Fiscal Year Ended March 31, 2019
Chiyoda Corporation (“Chiyoda”, TSE:6366; ISIN: JP3528600004) released the financial results of theFiscal Year ended March 31, 2019, on May 9, 2019. A presentation was held on the same day at
15:45 (Japan Standard Time).The following is the summary of the transcript (translation).

Outline of FY2018 financial results / Forecast of FY2019
 New orders were in line with our forecast. As a result, the order backlog
exceeded 1 trillion yen.
 Net sales of completed construction contracts were lower compared with theprevious fiscal year. This is because progress in percentage of completion in
the calculation of revenues for accounting purposes was negative due to asharp increase in costs related to the Cameron LNG.
 FY2018 resulted in net loss of 59.2 billion yen.
 Targets for the fiscal year ending March 31, 2020: new orders of 550.0 billion
yen, revenues of 390.0 billion yen, and profit attributable to owners of parent of
6.0 billion yen.
Outline of the Revitalization Plan
1. Financial Strengthening We plan to procure funds of 180 billion yen from Mitsubishi Corporation andMUFG Bank. The 180 billion yen is broken down as follows: 70 billion yen tobe procured from Mitsubishi Corporation through capital increase by third party
allotment of preferred shares, 20 billion yen to be procured from MUFG Bankthrough a subordinated loan and 90 billion yen to be procured from Mitsubishi
Corporation through a long-term loan.
 We have cleared “Notes on the ability to continue as a Going Concern” basedon this financial strengthening measurements.
 The amount of the capital increase (70 billion yen) was decided to avoid
detriment to the interests of our existing shareholders as much as possible.
 We plan to obtain approval by a special resolution at the Ordinary General
Meeting of Shareholders due to be held on June 25, as we believe it is1

Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,Yokohama 220-8765, Japanwww.chiyodacorp.com/enappropriate to verify the wishes of shareholders with regard to the fairness ofthe conditions of the preferred share allotment.
We plan to procure a long-term loan facility from Mitsubishi Corporation andMUFG Bank in order to ensure future business continuity while procuring thefunds needed to meet our current needs under the most appropriate conditions.
Our shareholders’ equity ratio will be around 2% even after execution of thecapital increase. However, we expect to build up earnings of around 90 billion
yen over the coming 5 years and we, therefore, expect our shareholders’ equity
ratio to recover to 20% or more by 2023.

2. Building the foundation for revitalization
We will implement three measures, namely (1) further develop the risk
management structure, (2) enhance EPC execution and management capacity,and (3) reinforce human resources.
(1) Further development of the risk management structure We will put the Strategy & Risk Integration Division into full-scale operationfrom July 1.
 In addition to the formulation of management plans and medium-to-long-term
growth strategies, the Strategy & Risk Integration Division will be responsible
for risk management of projects at a whole company level right through fromthe pre-order intake stage to the construction work execution stage.
 To enhancement corporate governance, we will change the composition of theBoard of Directors by increasing the percentage of independent external
directors to 40%. Moreover, the number of Board members who concurrently
serve as Executive Officers are limited to two: COO and CFO.
(2) Enhancement of EPC execution and management capacity
 We will actively promote the adoption and utilization of a digital platform thatthoroughly manages cost/schedule/quality of design, procurement, andconstruction.
 We will strengthen construction execution capabilities, aiming at enhancing
project control capabilities and preventing expansion of losses by prompt
countermeasures.
(3) Reinforcement of human resources We will introduce performance-based evaluation and compensation and seek
the diversification of each individual’s capabilities through role rotation beyond
organizational boundaries.
 We will also proactively recruit external talent to develop a group of humanresources who have a broad perspective and pursue higher added value.
2Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

3. Key points of the new Business Plan We will continue to focus on LNG projects, which are expected to grow in thefuture. At the same time, we will shift in direction towards the global
environment business given the business transitions to a low-carbon society.
 We will take on projects where we can play a leadership role in its execution.
We will also thoroughly examine construction risks and will ensure thatstructures/contract schemes fully reflect risks.
 We will further strengthen downturn resilience through reduction of fixed costs
including overseas subsidiaries and offices.
4. Quantitative targets of the Business plan We plan a yearly order intake of between 300 billion yen and 600 billion yen for
the LNG/Gas projects and global environment projects combined over thecoming five years.
 Through this, we aim to transform to a company that stably generates a net
profit of between 10 billion yen and 20 billion yen a year.
 We also plan to build up profit of 90 billion yen in five years and to improve ourshareholders’ equity ratio to 20% or more by 2023. Our aim is to eliminate theaccumulated losses within the period of this business plan.
5. Long-term vision for the future Two key growth strategies: 1) Expansion of two business areas, “Energy” and“Global environment” and 2) innovate EPC execution and diversify business bypenetrating into Investment & Service areas, utilizing digital innovation
technologies, are no change in the general direction under the revitalizationplan.
 We will redefine Chiyoda’s value in engineering beyond EPC; we will createsynergies with the all-round strength and new business creation capability of
Mitsubishi Corporation, which has a bird’s eye view of all industries; and we will
harness Chiyoda’s strengths to accelerate growth strategy.
 We intend to provide services to maximize the client’s asset value in a project
life cycle, introduce compound system fit for complex energy needs andrestrictions, and incubate for future technology development to solve
challenges in energy and global environment.

Note: Some additions and corrections were made to make the content easier for readers to understand.
Any projections included in these materials are based solely on information available at the time this presentation was prepared. It is possible that actual results may varysignificantly 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. Investor are recommended not to depend solely on these projections for making investment decisions.

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