Presenter

Mr. Masakazu Sakakida
Chairman of the Board,President & CEO0This presentation outlines Chiyoda Corporation’s (Chiyoda)
business overview in the fiscal year ending March 31, 2023,
released on May 9, 2023.

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 Four Year Progress in the Five Year Plan
1.

Revenue remains stable through steady execution ofongoing projects with improved risk and EPC executionmanagement.

2.

The Order Backlog is JPY 1.1 trillion, a steady three-year
revenue.

3.

New business creation and development is progressing
towards business portfolio transformation.

 Priorities for FY2023, the last year of the Medium Term
Management Plan
1.

Chiyoda to strengthen its financial position through profit
earnings in the steady execution of the JPY 1.1 trillion
project Backlog.

2.

Chiyoda will accelerate its business portfolio transformation
via continued growth in new business areas.

3.

Chiyoda to target early commercialization of its hydrogenbusiness.

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Key measures towards revitalization and stabilization:➊ Improved risk management❷ Improved EPC execution management❸ Expansion and enhancement of human resource systems
Key growth strategies:❹ Acceleration of digital transformation❺ Business portfolio transformation
All measures are steadily progressing.

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Chiyoda is expanding its stable earnings structure by steadily
executing ongoing projects, accumulating new businesses,
effectively allocating resources and managing expenses
appropriately.

6New Orders amounted to JPY 1.65 trillion in four years. JPY 220
billion is for new businesses.
Feasibility studies leading to new business projects are ongoing.

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

Chiyoda has established the following 2030 vision:
1.

Chiyoda will contribute to the goal of carbon neutrality
by 2050 by accelerating the transition towards adecarbonized society using our advanced technology.

2.

Chiyoda will transform its business portfolio andearnings
structure
byreinvigorating
existing
businesses while accelerating new business initiatives.

 2030 vision quantitative progress as of March 2023•

New business profit contribution ratio was 15% with a2030 target of 50%.

•

Consolidated profit was JPY 15.2 billion with a 2030
target of JPY 30.0 billion.

 Chiyoda aims to realize its 2030 vision by accelerating new
business initiatives.

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Chiyoda aims to realize business portfolio transformation bycreating ‘New Engineering Value’ in the four business domains ofLow Carbon and Carbon Recycling, Hydrogen Business, Energy
Management Business and Life Science Business, as well as
Digital Transformation.

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 Chiyoda promotes cleaner LNG by incorporating Carbon
dioxide Capture and Storage (CCS) technology in LNG
plants, reducing CO2 emissions by over 25% on NFE LNG inQatar compared to existing LNG plants.
 The metal resource field will also contribute to a carbon freesociety and Chiyoda is constructing a copper smelting plantin Indonesia.
 Chiyoda will continue promoting CO2 emission reductions
through the utilization of CCS, Carbon dioxide Capture andUtilization (CCU) and sustainable fuel, such as e-fuel, andSustainable Aviation Fuel.

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Chiyoda will continue promoting international hydrogen supply
chain construction initiatives centered on our unique SPERA
HydrogenTM technology.
In Singapore, Chiyoda is constructing a commercial scalehydrogen supply chain, targeting commercial operation in 2026.
It is expected to be the largest clean hydrogen supply businessin Asia with 60,000 tons production per annum.
Introducing hydrogen into Singapore serves as a role model for
Japan because both countries rely on overseas imports forenergy.

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In Europe, a hydrogen advanced region, Chiyoda is participating
in and promoting two large-scale projects: a commercial scale‘Hydrogen Import Hub Scheme’ in the port of Rotterdam, TheNetherlands and a Scotland to the port of Rotterdam ‘Hydrogen
Highway Scheme’.

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In Japan, Chiyoda is planning carbon free hydrogen production
development in the Chubu region with Chubu Electric Power
Company Inc. and an Australian company, Hazer Group Ltd.
The three companies aim to establish a development plan by2024 and commence initial start-up of the facility by the late2020s.

15In March 2023, Chiyoda completed the world’s largest batteryenergy storage system, accumulating a track record in proposing
ideal energy supply combinations.
Chiyoda will use the experience to expand its Energy
Management Business and a further order for the Engineering,
Procurement and Construction (EPC) of another battery energy
storage system project has been received.

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Chiyoda will expand its Life Science Business, maximizing its
successful EPC completion track record and expertise from theoil and petrochemical industry.
In January 2023, Chiyoda completed a vaccine constituentproduction facility for SHIONOGI & Co., Ltd and we will use thisexperience in the next generation of pharmaceutical products
and bio-industry.
Chiyoda participates in the contract development andmanufacturing business for active pharmaceutical ingredientsand intermediates, led by Shionogi Pharma Co., Ltd and we will
apply our oil and petrochemical continuous manufacturing (CM)technology expertise in the pharmaceutical industry.

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Chiyoda pursues three basic strategies in cultivating digital
expertise as a foundation for digital transformation (DX) in thedevelopment of a digital culture towards company-wide DXacceleration: Project Execution DX, Corporate Management DXand DX Business.

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An integrated engineering company, ‘CHIYODA X-ONEEngineering Corporation’ was established in April 2023 from themerger of three group companies.
The Chiyoda Group will deploy ‘domestic EPC reinforcement’
and a ‘client plant Operation and Maintenance Transformation
digitalized solution business’, harnessing the engineeringexpertise of each of the three companies.

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Chiyoda declared its carbon neutrality goals in April 2022. The
greatest challenge is CO2 emission reduction in Scope 3 of thesupply chain. As an initial step, Chiyoda continues to propose
solutions to clients.
Chiyoda will continue contributing to carbon-recycling and realize
a decarbonized society through both recirculation and reduction,
cooperating with stakeholders such as clients, suppliers andpartners.

22‘Human resources (HR) are the most important asset of any
engineering company. Improvement and enlargement of humanresources are the driving force leading to business growth.’
Based on our HR philosophy, Chiyoda has implemented
multilateral measures with three objectives: ‘Improvement andEnlargement of HR’, ‘Fostering Digital HR’ and ‘Wellness
Management / Diversified Organization’. The measures areproving successful.
Chiyoda will continue promoting human capital management torealize sustainable growth.

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FY 2023 is the last fiscal year in the five-year medium term
management plan.
Looking back at the last four years, Chiyoda is steadily
progressing in both qualitative and quantitative aspects.
FY 2023 will be the final year of the current plan in contributing tostable project profit towards further growth. We will commence a
new management plan in FY 2024.

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