グローバル本社〒220-8765 横浜市西区みなとみらい四丁目 6 番 2 号
みなとみらいグランドセントラルタワー

www.chiyodacorp.com/

The presentation was held in Japanese. ThisAugust 16, 2019
IR, PR & CSR Department
Chiyoda Corporation

document is a translation/ summary forreference only.

Financial Results for the First Quarter of Fiscal Year Ending March 31, 2020:
Briefing Summary(Briefing held on August 1, 2019)
Chiyoda Corporation (“Chiyoda”, TSE:6366; ISIN: JP3528600004) released the financial results of
the 1st quarter of Fiscal Year ending March 31, 2020, on August 1, 2019. A presentation was held on
the same day at 15:30 (Japan Standard Time).The following is the summary of the transcript(translation).
Highlights
 Operating income stood at 9.1 billion yen, signifying profit secured in the main business and asteady start of the revitalization process. Profit was 2.3 billion yen, reaching approximately 38%of the full-year forecast.
 Measures for financial strengthening are implemented in line with the revitalization plan. Paymentof 70 billion yen for the preferred shares in the third-party allotment was completed on July 1 andnegative net worth was cleared. A Subordinated loan of 20 billion yen from MUFG Bank was also
executed on July 1. In addition, a credit line of 90 billion yen from Mitsubishi Corporation has
been secured in preparation for future cash flow. Efforts to reduce fixed cost continue in addition
to measures to strengthen the financial position of the Company.
 The new risk management system started steadily functioning. The Company ensures the steady
implementation and proper cost control of ongoing projects and accepts orders for new projects
based on strategies aiming at optimizing resource allocation and thorough risk control.
Financial Summary
 New orders amounted to 33.3 billion yen, revenue 86.5 billion yen, operating income was 9.1
billion yen, and profit came to 2.3 billion yen.
New Orders
 For Mozambique Area-1, the scope of work is limited to technical support after discussions withthe client and joint venture partners.
Contract Backlog(Description omitted)
Income-related Items
 Revenue totaled 86.5 billion yen, which is steady progress representing approximately 22% of thefull-year forecast of 390 billion yen.

1Gross profit was 13 billion yen and the gross profit ratio was 15% which exceeded the fiscal-yeartarget of 7.4% as a result of profit growth after reaching agreement with a client on new contract
conditions for Cameron LNG and the reversal of the contingency balance due to completion ofYamal LNG.
SG&A expenses stood at 4 billion yen, slightly less than 25% of the full-year forecast, indicating
the effects of steady reduction.
Non-operating income/expenses was a loss of 5.4 billion yen. Ordinary income came to 3.7 billion
yen. Adding extraordinary income (loss), income taxes, and others to these resulted in profit of
2.3 billion yen.

[Non-operating income/expenses]
 Foreign exchange valuation loss accounts for major portion of Non-operating expenses.
 As for non-consolidated foreign-currency denominated assets, foreign exchange forward contract
has been arranged to hedge the risk of currency fluctuations in the past. However, a large loss inoverseas subsidiary was posted in the settlement for the fiscal year ended March 31, 2019, which
resulted in a large amount of foreign-currency denominated liabilities thereof. As a result, theforeign-currency denominated assets and liabilities were mostly comparable on a consolidated
basis. Therefore, foreign exchange forward contract has not been arranged in first quarter of fiscal
year ending March 31, 2020.
 The yen rose approximately three yen against the US dollar between the end of March and the endof June. While this affected the income statement, it had limited impact on the balance sheet.
 Under consolidated accounting rules, a change in the amount of non-consolidated foreigncurrency denominated assets and liabilities is recognized in the income statement as a foreignexchange gain or loss, which results in an increase or decrease in profit, while such change is also
recognized as a foreign exchange translation adjustment (comprehensive income) of the balance
sheet. In contrast, a change in the amount of foreign-currency denominated assets and liabilities
of an overseas subsidiary is not recognized in its income statement as a foreign exchange gain orloss, while such change is recognized as a foreign exchange translation adjustment(comprehensive income) of balance sheet.
 As a result, a decrease in assets and a decrease in liabilities correspond to each other on theconsolidated balance sheet and the impact is limited. Meanwhile, only the foreign exchange loss
caused by a decrease in non-consolidated assets is recognized on the income statement, giving anegative effect on the net result.
 Moreover, because there is a three-month difference between the fiscal year end of nonconsolidated account settlement and that of its overseas subsidiaries, any negative impact on theincome statement and balance sheet of non-consolidated basis appears mainly in the first quarterand positive impact on the balance sheet of subsidiaries appears in the second quarter. The amounts
of foreign-currency denominated assets and liabilities on a consolidated basis, however, almost
offset each other and the actual impact is limited.
 This foreign exchange loss will not affect the cash flow.
 The arrangement of a foreign exchange forward contract for its foreign-currency denominatedassets and liabilities shall be flexibly treated, considering financial situation in the future.

2グローバル本社〒220-8765 横浜市西区みなとみらい四丁目 6 番 2 号
みなとみらいグランドセントラルタワー

www.chiyodacorp.com/Revenue(Description omitted)

Balance Sheet Cash and deposits increased to 102.6 billion yen primarily due to the execution of a short-termloan of 30 billion yen from Mitsubishi Corporation based on the loan package in the revitalizationplan.
 Accounts receivable – other rose 6.7 billion yen generally due to advances paid for subcontractors
in the Ichthys project.
 Total net assets presented as negative net worth of 54.9 billion yen is the amount before theimplementation of the third party allotment by Mitsubishi Corporation.
 The negative net worth were cleared as of July 1 after Mitsubishi Corporation underwrote 70
billion yen for the third-party allotment and MUFG Bank executed a subordinated loan of 20
billion yen on July 1.
Full-year Forecast The full-year forecast remains unchanged.
Status of Ongoing Major Projects
 The agreement had been reached with the client on new contract conditions for Tangguh LNG inJuly. The result of this agreement has not been incorporated into the financial results for the firstquarter of the fiscal year ending March 31, 2020.
--End--

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 wasprepared. It is possible that actual results may vary significantly from the projections due to a number of risk factors suchas 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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