Medium-Term Management PlanEngineering Excellence, Value Creation(April 1, 2009 to March 31, 2013)

Chiyoda Corporation
May 13, 2009

Contents
1.

Review of DSP2008 (Previous medium-termmanagement plan: FY 2005 to FY 2008)

2.

Outline of the Medium-Term Management Plan(the “Plan”)

3.

Strategies to Achieve Plan Targets

Engineering Excellence, Value Creation
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1. Review of DSP2008(1) Financial Results¥ billion

Revenues¥ billion

Ordinary Income

400
40

7,000
700
6,000600

300
30

5,000
500

400
4,000

200
20300
3,000200
2,000

10100

100
1,0000005年度
FY05¥ billion

06年度
FY06

07年度
FY07

05年度
FY05

08年度
FY08

Operating Income¥ billion

4040030030303002002006年度
FY06

07年度
FY07

08年度
FY08

07年度
FY07

08年度
FY08

Net Income

20200

100101010000

005年度
FY05

06年度
FY06

07年度
FY07

08年度
FY08

DSP2008 plan

05年度
FY05

06年度
FY06

Results

Engineering Excellence, Value Creation
All Rights Reserved. CHIYODA 200921. Review of DSP2008(2) Action Plans
Achieved

OngoingIssues••••Established Top share in LNG business
Established a sound financial structure byincreasing shareholders equity
Unified operation of group companies in Japan
Strengthened CSR activities and the internal control system••••Earnings growth
Promoting plant lifecycle engineering (PLE)
Further strengthening global operations
Human resource development: Promote CDP* and train PKP*** CDP (Career Development Plan) = Employee development and training program** PKP (Project Key Person) = Key managers in project execution

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1. Review of DSP2008(3) Qatar Projects: Results and Lessons
ResultsLessons

1. Overcame challenging technicalissues related to the world’s
largest LNG plants

1. Over-concentration of projects
in Qatar

2. Simultaneous project
management of six large LNG
trains
3. Built trusting relationships
with customers

2. Further strengthening of resource
management
3. Resource shortage due
to a greater-than-expected
construction boom

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2. Outline of the Medium-Term Management Plan

Business Environment【Short term】
 Financial crisis and its impact on the global economy
 Intensifying price competition due to a short-term drop

in energy demand and weak energy-related investment【Medium term】
 Steady growth in energy demand, followed bycontinuous strategic investment in energy plants
 Tighter environmental regulations and harsh conditions
for resource development
 Increasing presence of national oil companies (NOCs)
 Various strategic initiatives and accelerated overseas
investment by domestic customers
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2. Outline of the Medium-Term Management Plan

Future Business Opportunities

１ project
５ projects

Gas

Refinery/PetrochemicalOthers

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2. Outline of the Medium-Term Management Plan

Management Vision
Business Domain: Energy, Environment
and Resource Development

CHIYODACHIYODAEnergy

3 Key Concepts■Technology ChallengeGroupGroupEngineering
EngineeringExcellence
Excellence
Value
Creation
Value Creation

Environment
Resource

Study, acquire, accumulate
Development
and develop leading-edge technologies■Optimum Solutions
Provide environmentally responsible,
optimum solutions that meet theneeds of customers and society

Technology Challenge
Optimum Solutions

CoreCore
Competence
Competence

Global Diversification■Global Diversification
Further strengthen global operations
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2. Outline of the Medium-Term Management Plan

Earnings Target


FY2012（ending March 2013）
consolidated net income : 23 billion yen



FY2012 Performance Assumption（Billions of yen）

Revenues
Operating income
Ordinary income
Net income

550
34
38
23

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2. Outline of the Medium-Term Management Plan

Dividend and Investment Policies
Dividend: Consolidated payout ratio of 30%
Amount available for investment:
More than ¥100 billion over 4 years
Strategic investment
for growthStrengtheningof managementfoundation

Investment inresearch anddevelopment

For the near term, focus on prudent cash management

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3. Strategies to Achieve Plan Targets

Main Strategies

Further strengthen

Build acore businesses

balanced portfolio

Strengthen unified Group operation

Create an energetic corporate culture
and develop human resources
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3. Strategies to Achieve Plan Targets(1) Further Strengthen Core Businesses– Maintain Top Share in LNG
1. Expand to new countries and regions


Establish offices in promising regions (Australia, Brazil, etc.)
Strengthen relationships with NOCs
Promote business development in new regions throughcollaboration with Mitsubishi Corporation

2. Respond to diversified project environment

Pursue floating LNG business (established FPSO Department)
Broaden opportunities through diverse contracting strategy
Seek strategic partners (by region/technical specialty)

3. Adhere to safety- and environment-first policy in plant designand construction

Engineering Excellence, Value Creation
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Outlook for LNG Demand600（MM ton)

Total LNG
Demand500
400

223+5% p.a.
*CAGR

300

186
138

200

136

105

113100156

699741037192007

2010EAmericas

2020E
Europe173MM ton
(2007)↓517MM ton(2030)↓+ 344 MM ton

2030E

Asia-Pacific* CAGR: Compound Annual
Growth Rate

Source ： The Institute of Energy Economics, Japan June 2008

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3. Strategies to Achieve Plan Targets(2) Build a Balanced Portfolio
1. Differentiate to acquire refinery, petrochemical, synthesis gasand other projects

Strategic application of Chiyoda’s proprietary technologies and licensors’technologies

2. Expand environmental business fieldExpand into renewable energy segment
Carbon management business for a low-carbon society

3. Expand into non-EPC business field

Build a technology consulting business(Integrated utilities, gasification of coal and heavy crude, energysaving, facility upgrading, etc.)
Expand licensing business (catalyst and process development, Chiyoda
Thoroughbred 121 (CT-121), etc.)
Strengthen IT solutions businessEngineering Excellence, Value CreationAll Rights Reserved. CHIYODA 200913

3. Strategies to Achieve Plan Targets

Future Business Portfolio By Segment

FY2012
consolidated
revenues¥550.0 billion

FY2008
consolidated
revenues¥446.4 billion

LNG/GasEPC-Others

Non-EPC

LNG/GasEPC-Others

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Non-EPC14

3. Strategies to Achieve Plan Targets(3) Strengthen Unified Group Operation
1. Strengthen regional sales and execution focus


Expanding subsidiaries’ operation in Singapore and Saudi Arabia
Full-scale operation of subsidiary in Qatar

2. Enhance global operational efficiency
Further expand and promote GES（Global Engineering Satellite）
operations

3. Develop business in new regions through capital andbusiness alliances with other companies

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3. Strategies to Achieve Plan Targets(4) Create an Energetic Corporate Culture andDevelop Human Resources
1. Further enhance the resource management system
2. Review and improve the personnel evaluation system toenergize employees and heighten motivation
3. Promote a career development system for futuregenerations

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Engineering Excellence,Value Creation

Technology ChallengeOptimum Solutions
Global Diversification
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Outlook for Energy Demand(Mtoe)

Average annual
growth rate

18,00016,00014%

14,0005%

12,00029%

10,000

13%
7%
23%

8,000
6,000

20062030
H & R*

2.0%

Nuclear

0.9%

Coal

2.0%

NG**

1.8%

Oil

1.0%

Total

1.6%

22%

21%

4,000
2,000

30%

36%

02000
Oil

Natural Gas

2006
Coal2015
Nuclear2030

Hydro & Renewable*Hydro & Renewable**Natural Gas

Source: IEA World Energy Outlook 2008

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Investment Plans of International Oil Companies(IOCs) and National Oil Companies (NOCs)
Total investment (upstream and downstream)Amount of planned
investment for FY2009

FY2008ExxonMobil$29.0 billion〔$150.0 billion over 5years〕

FY2008: $26.1 billion
FY2007: $20.9 billion

Shell$31.0 billion - $32.0 billion $32.0 billion

ConocoPhillips$12.5 billion

Qatar Petroleum$8.25 billion at gas sector from 2007 to 2012

Saudi Aramco$60.0 billion from 2010 to 2014
Upstream: $2.8 billion; Downstream: $3.2 billion

Petrobras$112.0 billion from 2009 to 2013$19.9 billion

Source: Press releases and website of each company, etc.

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Example Analysis of Marketability of
New Business Field: New Energy Market

Technological Superiority

Annual market of¥20 trillion

Materials for solar power(¥150.0 billion percompany annually)

Includes major
EPC target area
Materials for clean automobiles

Ethanol/ETBE

Solar power systemsWind power
Biomass/Waste power
Market Appeal (Incl. growth potential and compatibility with EPC)

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【Contact】

Chiyoda Corporation
12-1, Tsurumichuo 2-chome, Tsurumi-ku
Yokohama 230-8601, Japan
Investor Relations &Corporate Communications OfficeTEL(81) 45-506-7538
FAX(81) 45-506-7085
e-Mail CHYOD@ykh.chiyoda.co.jp
URL http://www.chiyoda-corp.com/en/

The forward-looking statements in this presentation are based on forecasts and plans as ofMay 13, 2009. Actual results may differ from forecasts due to risks and uncertainties resulting
from factors including but not limited to changes in the economic climate.