Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

Abridged Translation:
The report is not audited and this translation is an abridged version prepared based on the statutory format in Japan for ref erence
purpose only. If there is any discrepancy between this translation and the original Japanese version, the Japanese shall prevail.

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2024
June 26, 2024
Company name
: CHIYODA CORPORATION
Listing : Tokyo Stock Exchange
Stock code
: 6366
URL : http://www.chiyodacorp.com/en/
Representative: Masakazu Sakakida, Representative Director, Chairman of the Board
Inquiries: Masataka Kinoshita, General Manager, Accounting Department
TEL +81-45-225-7777
Date of general shareholders' meeting : June 28, 2024
Annual securities report filing date : July 1, 2024
Dividend payable date
:Supplementary Explanation Material: Yes
Financial Results Presentation: Yes(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated operating results for the fiscal year ended March 31, 2024
(April 1, 2023 to March 31, 2024)(Percentages indicate year-on-year changes)(1) Consolidated operating results
Net sales

Operating income

Profit attributable toowners of parent

Ordinary income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

505,98117.6(15,006)－(5,461)－(15,831)－430,163

38.3

18,11671.8

20,322

77.8

15,187－

Fiscal year ended
March 31, 2024
Fiscal year ended
March 31, 2023

: Fiscal year ended March 31, 2024: (16,287) million yen / (－%)

Note: Comprehensive income: Fiscal year ended March 31, 2023 : 6,794 million yen / (－%)
Net income Fully diluted net
per share income per share
Yen

Return on
equity(ROE)

Yen

Ratio of ordinary
Ratio of operating
income to total assets income to revenue%%%

Fiscal year ended(69.22)－(117.1)(1.3)
March 31, 2024
Fiscal year ended
50.54
15.49
80.3
5.1
March 31, 2024
Reference: Equity gains (losses) of affiliated companies : Fiscal year ended March 31, 2024 : (596) million yen: Fiscal year ended March 31, 2023: (413) million yen

(3.0)
4.2

(2) Consolidated financial position
Total assets
Millions of yen

As of March 31, 2024
As of March 31, 2023
Reference: Equity

Net assets
Millions of yen

Equity ratio

Net assets per share%Yen

426,967
6,077
1.1
406,588
22,3105.5: Fiscal year ended March 31, 2024 : 4,858 million yen: Fiscal year ended March 31, 2023 : 22,180 million yen(275.91)(201.02)(3) Consolidated cash flows
Net cash provided by
Fiscal year ended
March 31, 2024
Fiscal year ended
March 31, 2023

Financing activities

Cash and equivalents
at the end of the year

Operating activities

Investing activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen

62,747(1,567)(5,851)

166,208

44,157

7,889(17,057)

106,682Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

2. Dividends
Cash dividends per share
Record dateFiscal year ended
March 31, 2023

First quarter

SecondquarterThird quarter

Fiscal yearend

AnnualCashdividends(annual)on
Payout ratio Dividend
equity ratio(consolidate) (consolidate)

Yen

Yen

Yen

Yen

Yen Millions of yen

%

%

－

－

－

0.00

0.00

0.0

－

0

Fiscal year ended
－
－
－
0.00
0.00
0
－
－
March 31, 2024
Fiscal year ending
March 31, 2025
－
－
－
－
－
－
(Forecast)
Note: No forecast has been made about the year-end dividends for the fiscal year ending March 31, 2025 at this time.
Note: The table shows dividends status of common stock. For dividends status of class A shares (unlisted), please refer to‘Dividend Status of Class A Shares’ as referred to hereinafter.

3. Consolidated forecasts for the fiscal year ending March 31, 2025 (April 1, 2024 to March 31, 2025)
The announcement of consolidated forecasts for the fiscal year ending March 31, 2025 is postponed because thediscussions with the customer of the Golden Pass LNG project in Texas, U.S. have been continuing related to the fact that
Zachry, one of the partners for Chiyoda and its wholly owned Houston, Texas headquartered subsidiary, Chiyoda
International Corporation to execute the project, filed for Chapter 11 relief under the United States Bankruptcy Code.

# Notes(1) Changes in significant subsidiaries during the period (Changes in specified subsidiaries causing changes
in scope of consolidation): None
(2) Changes in accounting policies and accounting estimates / restatements
a. Changes in accounting policies due to revisions of accounting standards, etc.
b. Changes in accounting policies other than a. abovec. Changes in accounting estimates
d. Restatements: None: None: None: None(3) Number of shares issued (common stock)
(a)
(b)
(c)

#
#

Number of shares issued at yearend (including treasury stock)
Number of treasury stock at yearend
Average number of shares during
the period

Year ended
March 31, 2024
Year ended
March 31, 2024
Year ended
March 31, 2024

260,324,529 shares
1,251,898 shares
259,046,914 sharesYear ended
March 31, 2023
Year ended
March 31, 2023
Year ended
March 31, 2023

260,324,529 shares
1,353,124 shares
258,969,434 sharesThis earnings release is not subject to audit procedures by certified public accountant nor audit corporation.
Proper use of earnings forecasts, and other special directions
The forward-looking statements, including earnings forecasts, contained in these materials are based on information
currently available to the Company and on certain assumptions deemed to be reasonable. Actual business and otherresults may differ substantially due to a number of factors. Please refer to ‘(3) Outlook in 1. Qualitative Information
Related to Consolidated Performance’ for earnings forecasts conditions and notes on the use of earnings forecasts.

Dividend Status of Class A SharesClass A Share
Cash dividends per share
Record date
First quarter Second quarter Third quarter Fiscal year-end
Yen
Yen
Yen
Yen
Fiscal year ended
－
－
－
0.00
March 31, 2023
Fiscal year ended
－
－
－
0.00
March 31, 2024
Fiscal year ending－－－－
March 31, 2025
(Forecast)

Annual
Yen
0.00
0.00

Note: No forecast has been made about the year-end dividends for the fiscal year ending March 31, 2025 at this time.

－Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

Table of Contents for the appendices1.

Qualitative Information Related to Consolidated Performance ................................................... 2(1)

Qualitative Information on Business Performance............................................................... 2(2)

Financial Information on Business Performance ................................................................. 7(3)

Outlook ............................................................................................................................... 8(4)

Basic Dividend Policy and Dividend Distributions................................................................ 9(5)

Business Risks ................................................................................................................... 92.

Accounting Standard Selection Policy...................................................................................... 13

3.

Consolidated Financial Statements and Notes ......................................................................... 14

4.

(1)

Consolidated Balance Sheets ........................................................................................... 14(2)

Consolidated Statement of Income and Comprehensive Income ...................................... 16(3)

Consolidated Statement of Changes in Equity .................................................................. 18(4)

Consolidated Statement of Cash Flows ............................................................................ 20(5)Notes ................................................................................................................................ 22

Contracts and Sales ................................................................................................................. 24

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Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

1. Qualitative Information Related to Consolidated Performance(1) Qualitative Information on Business Performance
The global economy has continued to face an uncertain outlook in FY2023, due to the increasing geopoliticalrisk including destabilization in the Middle East and monetary tightening to control inflation.
Under these conditions and considering the business environment in which we operate, as demand forachieving a low-carbon and decarbonized society increases in response to climate change, there is also a
growing need for stable energy supply, such as the expansion of liquefied natural gas (LNG) demand. This
calls for the realization of a sustainable and prosperous future for both people and the planet.
Based on our medium-term management plan ‘Revitalization for the Future’(FY2019 to FY2023), Chiyoda’srisk management structure and our engineering, procurement and construction (EPC) project management
capabilities have strengthened, reinforcing our stable profit-making base. We continue to transform ourbusiness portfolio by advancing our existing businesses, based mainly on LNG due to its increasing
importance as a resource for a stable supply of energy during the global energy transition, and strengthening
new businesses in growth fields such as renewable energy, hydrogen, carbon cycling, energy management
and life sciences.
Under these circumstances, considering the possibility of withdrawal of Zachry Industrial, Inc. (hereinafter‘Zachry’), one of the partners for Chiyoda and its wholly owned Houston, Texas headquartered subsidiary,
Chiyoda International Corporation (‘CIC’) to execute the Golden Pass LNG project* (‘the Project’) in Texas,
U.S., from the Project, discussions among Golden Pass LNG Terminal LLC (‘GPX’) in the U.S., the Project
customer, CB&I LLC (‘CB&I’), a joint venture partner in the U.S., and CIC on a possible new organizational
structure to continue the Project and complete construction have been continuing since April 2024 when thepossibility arose. A consensus was yet to be reached before the date of announcement of financial results
on which Chiyoda was originally scheduled. Subsequently Zachry filed for Chapter 11 relief under the UnitedStates Bankruptcy Code on May 21, 2024 in the U.S time, which, as well as other related matters, should
adjust the financial statements as the subsequent events after reporting period.
For the fiscal year ended March 31, 2024, considering the possibility of Zachry’s withdrawal from the Project,
we estimated the total costs to be incurred to complete construction and the contract amount based on thesigned documents as of the date of this report.
On a consolidated basis, for the fiscal year ended March 31, 2024, New Orders amounted to JPY 237,545
million (up 53.3% YoY), Revenues amounted to JPY 505,981 million (up 17.6% YoY) and the Order Backlog
amounted to JPY 993,878 million (down 13.5% from last FY). Operating Loss is JPY 15,006 million(Operating Profit was JPY 18,116 million for last FY) and Ordinary Loss is JPY 5,461 million (Ordinary Profit
was JPY 20,322 million for last FY). A recording of Income Taxes resulted in a Loss Attributable to the
Owners of the Parent of JPY 15,831 million (Profit Attributable to the Owners of the Parent was JPY 15,187
million for last FY).
*Golden Pass LNG project is the project Zachry, CB&I and CIC jointly have executed EPC work for the LNG
Plant (Total 15.6 MMTPA, 5.2 MMTPA x 3 Trains) with associated facilities from 2019. Construction iscurrently ongoing.
MMTPA: Million Metric Tonne per Annum
Further information regarding reportable engineering business segments is presented below.
⚫ Energy
LNG / Gas
【Overseas】
The Group is executing the EPC of LNG plants in Qatar, the USA and Indonesia. In Qatar, the EPC phasefor the North Field East (NFE) project, an expansion of four LNG trains with capacities of 8 (eight) million
metric tons per annum each is ongoing, and construction is progressing. In the USA, the Golden Pass LNG

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Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

project is also in the EPC phase and construction is progressing.
In the gas sector, the Group has been engaged in the engineering design for renovation work of LNG/gas
processing plants in Qatar.
【Japan】
In the gas sector, the Group has been engaged in the engineering design for renovation work of LNG/gas
processing plants in Qatar.
Refinery/Petrochemical
In Japan, we are upgrading oil refinery facilities and examining energy saving measures and strategies foroil companies to realize carbon neutrality. The Group deploys an operation and maintenance (O&M)
business for operation optimization, efficient facility maintenance and O&M digital transformation (DX),combining our expertise of advanced analysis technologies, such as 3D fluid analysis, dynamic simulation,
structure analysis and earthquake resistance technology, and the latest digital technology for oil refineries
and petrochemical compounds. In the petrochemical field, we completed the EPC phase of a new functional
materials project.
The Chiyoda Group, Microwave Chemical Co., Ltd, and Mitsui Chemicals, Inc. are engaged in the joint
development of innovative naphtha cracking technology using microwave heating, contributing todecreasing CO2 emissions from pyrolysis of naphtha. The project has been adopted by the New Energy
and Industrial Technology Development Organization (NEDO) under the Program for Promotion of
Research & Development and Social Implementation of Energy-saving Technologies towards Realizationof a Decarbonized Society: Priority Issues Promotion Scheme. The technology will contribute to a significant
reduction in CO2 emissions from the thermal decomposition of naphtha, which has been a major challenge
in the chemical industry.
⚫ Environment
Pharmaceutical/Biochemistry/General Chemistry
Chiyoda is executing the EPC phase for AGC Corporation’s new biopharmaceutical API manufacturing plant,
and other pharmaceutical product manufacturing plant EPC projects.
We have been awarded a Feasibility Study (FS) and Front End Engineering Design (FEED）contract in thepharmaceutical field, introducing and implementing continuous production technology developed in the
petroleum industry. Following selection by NEDO after an open call for proposals, we are collaborating withindustry and academia on a ‘Technology Development for Large-scale Production of Highly Modified
Recombinant Proteins in Plants’ research and development project.
In the general chemistry field, we are engaged in an EPC project, awarded by Kureha Corporation, toincrease the capacity of their monomer process for producing polyvinylidene fluoride (PVDF).
Environment/New Energy/Infrastructure/Advanced Materials【Environment】
We are installing flue gas desulfurization (FGD) equipment in coal-fired power plants in India in response totightening environmental regulations, and the Group’s thoroughbred 121 (CT-121) FGD process has been
installed in a number of plants.
【New Energy】
We are reinforcing the utilization of stored energy for efficient use of renewable energy while working on aterritorially distributed energy procurement system. In the Fiscal year ended March 31, 2024, we
successfully completed construction and commenced operation of the ‘Regional Microgrid’ project for Tokyu
Land Corporation in Matsumae Town, Hokkaido. We continue contributing to the realization of projects
aimed at improving regional resilience through the local consumption of renewable energy, leveraging theexperience gained from this project. Miscellaneous activities, including support for fixed offshore power
plants in Japan and feasibility studies for the construction of a floating power plant are ongoing.

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Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

【Infrastructure】
The Group is in the construction phase of the EPC project for a copper smelting plant in Indonesia, theworld’s largest single manufacturing line plant.
In Japan, the Group is executing an inorganic battery material demonstration plant project to increase safety,
extend cruising distances and shorten recharge durations of next-generation batteries. We are also
executing restoration work for plants damaged by the 2024 Noto Peninsula Earthquake.
【Advanced Materials】
In Japan, the Group is executing an inorganic battery material demonstration plant project to increase safety,
extend cruising distances and shorten recharge durations of next-generation batteries for electric vehicles(EVs).
(Note)
Please refer to 3. ‘Production, Contracts and Sales’ for further details of New Contracts, Net Sales andContract Backlog, by segment.
<<Decarbonization Business >>The Group’s hydrogen business (hydrogen/ammonia), Carbon Capture and Storage (CCS)/ Carbon Captureand Utilization (CCU) business and energy management business are presented below.
Hydrogen/Ammonia
In the hydrogen field, the Group is participating in projects in Singapore, Europe and Japan to constructhydrogen supply chains using our unique SPERA HydrogenTM technology.
In Singapore, conceptual design is ongoing with Sembcorp Industries, a leading integrated utilities firm andgovernment-affiliated conglomerate and Mitsubishi Corporation to realize a commercial scale cleanhydrogen supply chain in the city-state. The three parties have set a goal to commence commercial
hydrogen supply in the latter half of 2026.
In Europe, the Group participated in a hydrogen marine transportation project (LHyTS project) to exporthydrogen from Scotland to Rotterdam and completed feasibility studies in November 2023.
In Japan, Chiyoda is a managing board member of the Japan Hydrogen Association and is engaged increating social implementation projects in Japan while providing government policy support. In April 2023,
the Group concluded a Memorandum of Understanding (MOU) with Chubu Electric Power Company andHazer Group Limited, an Australian technology development company, to produce hydrogen using the
HAZER®Process. Detailed discussions regarding plans to develop carbon-free hydrogen and carbongraphite production facilities in the Chubu region are continuing.
In February 2024, Chiyoda signed a basic cooperation agreement with Toyota Motor Corporation to jointly
develop a large-scale electrolysis system and construct a strategic partnership. Both signatories participatedin the International Hydrogen & Fuel Cell EXPO 2024 and will develop 5 MW-class equipment as the basic
unit for the introduction of the system at Hydrogen Park in the Toyota Honsha Plant in FY2025. The system
will then be expanded to the 10 MW class.
In Australia, Chiyoda, Kawasaki Heavy Industries, Ltd., Toyo Engineering Corporation and JGC Corporation
have signed a joint venture agreement, under the leadership of Kawasaki Heavy Industries Ltd, to enhance
the Front End Engineering Design (FEED) for a liquified hydrogen supply chain being developed by Japan
Suiso Energy, Ltd, aimed at realizing carbon neutrality by 2050 as specified by the Japanese Government.
In the ammonia field, the Group is leading a NEDO Green Innovation Fund initiative in a collaboration projectwith industry, government and academia to develop independent ammonia synthesis technologies to reduceammonia production costs. Together with JERA Co., Inc. and NIPPON SHOKUBAI CO., LTD., the Group isdeveloping ammonia cracking technology that is more competitive than existing technologies under NEDO’s
technologies development program. The Group is also conducting studies on ammonia receiving andhydrogen fuel supply facilities in Japan.
CCS/CCU

4

Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

The Group signed an MOU with Pace CCS Limited, a global leader in the field of CO 2 capturing technology
and CCS system design, to collaborate in the field of CCS. We will deliver CCS projects from initial feasibility
studies and conceptual design through Front End Engineering Design (FEED) and EPC.
Carbon dioxide separation and recovery technology development for large-scale natural gas fired power
plant turbines using domestic solid sorbent material is ongoing, under a NEDO Green Innovation Fund
Program.
In Southeast Asia, the Group entered into a joint study agreement with PT Pertamina (Persero), a stateowned oil company in Indonesia in March 2023, to develop carbon recycling technology. We signed an MOU
with the Electricity Generation Authority of Thailand in March 2023 to jointly study the development of aclean hydrogen and ammonia value chain in Thailand. The Group is executing research that contributes tothe transition to carbon neutrality in both countries.
In Japan, the Group completed: 1) a study on CO2 liquefaction, storage and shipping facilities as part of acarbon dioxide, capture and storage (CCS) value chain for Mitsubishi Corporation; 2) a conceptual design
study of CO2 compression facilities for CCS in East-Niigata by Japan Petroleum Exploration Co., Ltd.
JAPEX); 3) a study for a CCUS hubs and clusters concept in East-Niigata by MITSUBISHI GAS CHEMICALCOMPANY, INC. (MGC) and 4) a feasibility study for a CO2 capture / liquefaction plant and utility facility for
the Electric Power Development Co., Ltd. (J-POWER).
Chiyoda, Nippon Yusen Kabushiki Kaisha and its affiliate Knutsen NYK Carbon Carriers AS conducted ajoint study to quantitatively evaluate and verify the feasibility of a CCUS value chain, including liquefaction,
temporary storage and marine transportation of carbon dioxide covering Low Pressure (LP), Middle
Pressure (MP) and Elevated Pressure (EP) CCUS value chain methodologies. We will continue the joint
study to propose EP methods to customers.
In the CCU field, the Group is realizing carbon recycling as part of a collaboration project with industry,
government and academia, researching and developing CO2 capture and utilization technology using CO2
as a raw material to produce para-xylene.
In the e-fuel field, the Group signed an MOU with a German company, INERATEC GmbH (INERATEC) in
September 2022, to strategically collaborate on e-fuel projects to accelerate decarbonization using theirinnovative Power-to-X technology. We are also executing a 400Nm3-CO2/h methanation test plant projectfor INPEX CORPORATION and a 1 Barrel per Day (1B/D) synthetic fuel production test plant project for
ENEOS Corporation (ENEOS).
Chiyoda successfully completed a FEED contract awarded by SEKISUI CHEMICAK CO., LTD. for a CO2
to CO chemical transformation plant using ‘Chemical Looping Technology’ with a CO2 conversion rate of
90% or higher.
Energy Management
The Group is executing twenty (20) year maintenance work for the world’s largest Battery Energy Storage
System (BESS) for North Hokkaido Wind Energy Transmission Corporation, completed in March 2023 by
the Group. New BESS projects for ENEOS are also progressing.
The Group is reinforcing its domestic virtual power plant (VPP) business in collaboration with a start-up
company.
<<Digital Transformation (DX) Business>>
Chiyoda is accelerating company-wide digital transformation (DX) in three areas: Corporate DX, Project DX
and Human Resources DX, supporting our new purpose of ‘Enriching Society through Engineering Value’and enabling employees to work more efficiently through common information sharing digital platforms. As
part of our business portfolio transformation, we combine digital and physical technologies to provide hybrid
operation and maintenance (O&M) solutions through our O&M-X businesses.
(a)Corporate Management DX

5

Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

Chiyoda is accelerating Corporate DX, linking core accounting activities to accelerate the dissemination of
information to management while simplifying structures and reducing costs, aiming to be fully digital inplanning and managing human resources for more efficient resource allocation. We have initiated a resource
management system to coordinate resource management with order management to facilitate the rapid
examination of business plan scenarios and commenced a talent management system enabling strategic
allocation of resources and coordinate human resource development with company objectives by sharing
employee career aspirations with supervisors and Human Resource Officers.
Corporate-wide initiatives to improve work style include the introduction of Robotic Process Automation(RPA), Artificial Intelligence (AI) services and community sites to share information and initiate discussion.
(b)
Project Management DX
Advanced Work Packaging (AWP) aligns engineering and procurement deliverables with construction
schedules to improve construction efficiency, increase productivity and reduce costs. We have commenced
Chiyoda AWP on overseas projects to enhance our EPC execution management capabilities and improve
project outcomes. An innovative space design system that improves construction planning and preliminaryand detailed engineering efficiency has been developed by PlantStream Inc, a joint venture with Arent Inc,and introduced by plant owners and EPC contractors worldwide.
(c)
DX Business
The Group has reorganized its plant O&M solution and digital transformation business organizational
functions, deploying solution businesses to support the transformation of customer operation andmaintenance activities. By combining Chiyoda X-ONE Engineering Corporation with our inherent digitaltechnologies, such as advanced diagnosis and analysis, IoT and AI, we now provide O&M total solution
services through plantOS®, a field-centered physical maintenance support service for industrial plants.
We have signed MOU’s with Japan Business Systems, Inc. to collaborate in the development and provisionof cloud services to optimize the O&M of industrial facilities, and NSXe Co.LTD. to develop a rotating
equipment diagnosis business. We have joined The Digital Twin Consortium, an organization of leadinginternational digital twin technology companies, universities, governments and research institutes, to utilize
the plantOS® digital twin solution in plant O&M and have also signed an MOU with Visionaize Inc to utilize
their V-Suite® digital twin platform.
We have established a capital and business alliance with SENSYN ROBOTICS, Inc. to engineer solutions
based on their technologies and expertise in the infrastructure maintenance field, and collect data in realtime using robots, drones, AR/VR technologies etc for integration into Chiyoda’s 3D digital twin platform.
The Group has been awarded a Technical Service Agreement by PT. Donggi-Senoro LNG (DSLNG) as partof plantOS®, covering engineering, technology and process safety support for their LNG plant, and will
provide optimal solutions for its safe and stable operation using our consulting and engineering capabilities.

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Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

(2) Financial Information on Business Performance(a) Information on Assets, Liabilities and Net Assets(Assets)
Total Assets increased by JPY 20,379 million from the end of the last fiscal year, with an increase of
Cash and Deposits by JPY 40,831 million while a decrease of Jointly Controlled Assets of Joint Ventureof JPY 14,626 million and Notes Receivable, Accounts Payable from Completed Construction
Contracts, and Contract Assets of JPY 7,445 million.
(Liabilities)
Total Liabilities increased by JPY 36,611 million from the end of last fiscal year, with an increase ofContract Liabilities by JPY 25,353 million, Provision for Loss on Construction Contracts of JPY 8,614
million and Notes Payable, Accounts Payable for Construction Contracts of JPY4,405 million.
(Net Assets)
Total Net Assets is JPY 6,077 million due to a decrease of Retained Earnings resulted mainly from therecognition of Loss Attributable to Owners of Parent.
(b) Information on Cash Flow
Cash and Cash Equivalents as of March 31, 2024 was JPY 166,208 million, an increase of JPY 59,526
million from March 31, 2023, as detailed below:(Operating Activities)
Net cash provided by operating activities was JPY 62,747 million, mainly due to and an improvement
in working capital obligation resulted from the progress of construction despite the recognition of Loss
Before Income Taxes.
(Investing Activities)
Net cash provided by investing activities was minus JPY 1,507 million, attributed to Proceeds from Saleof Investment Securities and Purchase of Property, Plant, Equipment and Intangible Assets.
(Financing Activities)
Net cash used in financing activities was minus JPY 5,851 million, mainly attributed to Repayments ofLong-Term Borrowings.

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Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

(3) Outlook
1) Earnings Outlook for Financial Year Ending March 31, 2025
The Chiyoda Group traditionally prioritizes large-scale EPC projects and we successfully completed theTangghu LNG Expansion project in Indonesia in November, 2023. We are also currently executing the North
Field East (NFE) project in Qatar and a copper smelting plant in Indonesia, both awarded in 2021, in addition
to Golden Pass LNG project in the USA.
In Japan, Chiyoda are executing ongoing and new EPC projects awarded in FY2023, including a
polyvinylidene fluoride (PVDF) production facility, a synthetic fuel production test plant, a CO2 methanation
test plant and a biopharmaceutical API manufacturing plant.
The Group continues to strengthen as a result of consolidated management and Chiyoda X-ONE Engineering
Corporation, established on 1 April 2023 through the merger of three domestic group companies, is outperforming expectations.
We will continue strengthening risk management in the next fiscal year, optimizing the balance between risk
and return to improve our project execution capabilities and increase earning power.
In addition to signing the basic cooperation agreement with Toyota Motor Corporation and establishing acapital and business alliance with SENSYN ROBOTICS, we continue to scale-up our non-EPC business byinvesting with DNX Ventures Fund IV in the USA, strengthening our business development and our ability topartner with appropriate business enterprises.
We continue to expand our business portfolio, including life sciences, our O&M-X solution business and plantbio foundries (supported by NEDO), to flexibly respond to the changing external business environment.
2) Management Policy, Business Environment, and Issues Requiring Attention
Chiyoda’s previous five-year Revitalization Plan strengthened risk management, enhanced our EPC project
execution capabilities and reinforced our business foundations to ensure a stable profit-making base,following the financial challenges of fiscal year ended March 2019. However, from the fact that Zachry, apartner of one of the Group subsidiaries to execute the Golden Pass LNG project in Texas, U.S., filed for
Chapter 11 relief under the United States Bankruptcy Code on May 21, 2024 in the U.S time, the importanceof partners’ risk management has become evident and we will further strengthen its risk management during
the execution stage as well as the bidding stage of projects.
Our new purpose of ‘Enriching Society through Engineering Value’ was formulated in August 2023 following
proactive discussion between all Chiyoda colleagues, elucidating our wish to continue contributing to realizing
a sustainable future for our planet, and health and prosperity for its inhabitants, by working collaboratively
with customers and partners to deliver state-of-the-art solutions through our engineering expertise,technological proficiency and project execution capabilities.
We will release a new three-year Midterm Management Plan within this fiscal year to further strengthen our
foundations to becoming a stable and high-profit enterprise.
Cooperation between internal business divisions is essential for us to deal with the changing businessenvironment. Since the initiation of Revitalization Plan, we have established the following committees andstrengthened cross-functional collaboration to enhance the depth of our business strategy.
‘Integrated Strategy Committee’This committee formulates integrated and company-wide short, medium and long term business strategies
under the new Midterm Management Plan, and prepares human resource allocation and policy plans fortechnological development.
‘New Business Field Promotion Committee’This committee, originally called the ‘Carbon-Free Business Promotion Committee’, monitors the progressof business for which company-wide cooperation is required and promotes revising and updating thebusiness strategies according to business environment.

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Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

‘Project Competitiveness Committee’This committee plans and implements initiatives to achieve the JPY 30 billion consolidated net profit by
FY2030 and improve EPC business work processes and strengthen competitiveness by accelerating DX.
‘Human Resources Management Committee’This committee formulates employee career paths, executes succession plans and maximizes seniorhuman resource performance.
The Group has established committees to generate company-wide governance discussions andmanagement reporting systems and will continue to strengthen corporate governance to improve corporate
value and achieve medium to long-term growth.
‘Internal Control Committee’This committee establishes and operates an internal control system to guarantee business fairness inaccordance with relevant laws.
‘Compliance Committee’This committee ensures implementation of the Group’s compliance related responsibilities..
‘SQEI Management Committee’This committee continuously improves Safety, Quality, Environment and Information Security businessprocesses.
‘Sustainability Committee’This committee identifies and reflects major sustainability challenges in business strategies throughreviews and discussions.
Human resources are the Group’s most valuable asset and maximum personnel performance is essential toachieving the goals established in the new Midterm Management Plan we will release and to fulfill our new
purpose of ‘Enriching Society through Engineering Value'. We continue to implement measures to nurture
human resources with an innovative mindset and skills in an uninhibited and free-thinking working
environment. By implementing such measures, we continue to improve company value, enhance profitability
and strengthen corporate governance over the medium to longer term.

(4) Basic Dividend Policy and Dividend Distributions
We regret that there will be no dividend distribution to the common stock in light of the level of unappropriatedretained earnings for the year ended March 31, 2024.

(5) Business Risks
Risks to our operations and financial affairs with the potential to significantly affect investor decision-making,as well as the measures taken to address such risks, are described below.
Recognizing the possibility that these risks could arise, in addition to making every effort to reduce theiroccurrence, the Group also endeavors to respond as quickly as possible to minimize the effects should theyarise.
We have recognized the following risks as of March 31, 2024.
(a) Business trends and effects of economic, social and political changes
Global economic trends, social and political changes, trade protections, economic sanctions, diplomatic
tensions, national energy policy shifts and oil, LNG and metal market price trends may adversely impact
customer or partner financial circumstances, causing them to terminate, postpone or change their investment
plans and affecting the Group’s business performance.
The Group closely monitors the external economic and social environment as it conducts business to determine
project order certainty, and we endeavor to share the risk burden with customers through collaborative working

9Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

relationships. We also prepare and regularly update order receiving plans for back-up projects and participate
in broad studies centered on new business fields and non- EPC projects.
(b) Natural disasters such as earthquakes, virus infectious disease, geopolitical risks and Force Majeure
events such as terrorism and conflict
The occurrence of a natural disaster such as an earthquake, heavy rain, flooding or typhoon caused by global
climate change, the spread of viral disease or a Force Majeure event such as an act of terrorism or armed
conflict, may directly or indirectly result in damage to a worksite where there is an ongoing project, or to an officein Japan or overseas. Such risks can endanger workers' lives, delay the transport of equipment and materials
to a worksite, or interrupt on-site work.
The geopolitical crisis in Ukraine and destabilization in the Middle East have increased global risks andundermined the global economy, which could adversely affect the Group’s business performance due toweakening customer and/or partner performance, supply chain disruption and rising global inflation.
Such global catastrophes endanger human life and we have established a Crisis Management Department,
strengthened by externally hired security consultants, to compile and analyze data and evaluate the risk toemployees in affected areas, such as on the NFE project in Qatar as we continue to closely monitor
developments in the Middle East.
The Group works collaboratively with customers and partners to establish emergency response procedures, tobe implemented in the event of an emergency, to minimize the risk to all affected parties. We also develop
Business Continuity Plans (BCP) to improve our ability to continue operations through emergency safety drills.
(c) Risks related to partners
In the Group’s business domains, we may receive an order jointly with partners by setting up a joint venture ora consortium based on project size and complexity and risk sharing. In the event of partners’ default,
deteriorated financial circumstances or other critical issues affecting their project execution capabilities, theGroup may bear contractual joint responsibility and this may affect the Group’s business performance.
The Group analyzes prospective partners’ financial circumstances before the collaboration decision. We also
implement a system to immediately identify risks by monitoring joint venture partners’ financial circumstances.
Our risk management process includes analyzing potential partners’ financial circumstances and project
execution capabilities prior to and after establishing partnerships to immediately identify and deal with risks.
For the fiscal year ended March 31, 2024, based on the fact that Zachry, a partner of one of the Groupsubsidiaries to execute the Golden Pass LNG project in Texas, U.S., filed for Chapter 11 relief under the UnitedStates Bankruptcy Code on May 21, 2024 in the U.S time, we estimated the total costs to be incurred tocomplete construction and the contract amount based on the signed documents as of the date of this report,
considering the possibility of Zachry’s withdrawal from the Project.
(d) Surging equipment and materials costs
There is time lag between when a contract estimate is issued and when an order is placed. As a result, when
there is a dramatic shift in the socio-political situation, such as an outbreak of wars and conflicts between nations
and regions, we are exposed to the risk of an unforeseen increase in equipment and materials costs. Specifically,
the price of steel, which is a major component in plant construction, can be greatly affected by fluctuating prices
for coking coal and iron ore. It is also difficult to predict fluctuations in market prices for materials such as copper,
nickel, aluminum, and zinc. There are also concerns that shipping rates may be affected by the surge in oil
prices and higher insurance premiums.
To mitigate such risks, in addition to tracking market trends, the Group takes steps such as diversifying our
suppliers and encouraging competition by ordering from suppliers around the world, early order placement forequipment and materials, and building good relationships with top-tier suppliers. Through discussions andnegotiations with our business partners and stakeholders, such as clients, suppliers, and subcontractors, we
are working to appropriately address the soaring equipment, materials and labor prices caused by global
inflation.

10

Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024(e) Difficulty securing workers, equipment, and materials
In plant construction, work may be delayed if we are unable to secure the necessary human resources such as
construction workers, secure the necessary infrastructure, or procure the necessary equipment and materials
as planned, or by supply chain disruption. There is a risk that additional expenditure may be required to recover
lost time due to these factors.
In locations where the labor market is tight or where the climate is harsh, both in Japan and overseas, the Group
mitigates the risk of an unexpected rise in construction costs through development of construction methods
such as modular construction and by forming cooperative relationships with leading contractors and equipment
and materials suppliers. If construction is unavoidably suspended due to the worldwide spread of some
infectious disease or epidemic other than COVID-19, a strike, or some other unforeseen occurrence, we will
work with our clients and relevant local agencies on appropriate measures to minimize the impacts.
(f)

Risks associated with changes in the business environment arising from climate change

Climate change is affecting society on a global scale, and it is one of the most important social challenges
confronting the entire global community. The Group recognizes that the resulting changes to client investment
environments and to their business portfolios by physical risks and transition risks could have a significant
impact on our operations and business strategy.
The Group is addressing these challenges by formulating business plans that closely monitor the energy
situation, review climate change policy, laws and regulations in each country, and by obtaining the latest
information in a timely and appropriate manner via our government, agencies and customer networks in orderto recognize the requirements of complicated and developed societies and client challenges and solve themaccordingly.
Climate change can also be viewed as a new business opportunity. The business environment in which theGroup operates is undergoing significant changes. These include advances in faster decarbonization and acarbon recycling society and an accelerated transition to a hydrogen-based society as well as the increasingly
widespread adoption of low-carbon and renewable energy, including LNG. As a result of these changes, majorclients are overhauling their business strategies and the Group sees prospects for growth thanks to new market
opportunities. In view of the above, we continue to transform our business portfolio in response to society’s
demand for reduced environmental load.
Since our foundation, we have demonstrated an ability to optimize solutions for complex constraints andchallenges. In EPC execution, we rely on this ability to optimize engineering and ensure quality, and theapplication ability of new technologies fusing basic research and EPC expertise. By leveraging these strengths,
we will accelerate the transition to a carbon-free society including hydrogen energy. By transforming ourbusiness portfolio on two fronts - growing carbon neutrality and life science contribution fields and creating andstrengthening recurring business models - we aim to transform our earnings structure to generate consolidatedbasis net profit in excess of JPY 30 billion.
We will contribute to achieving carbon neutrality by 2050 through a combination of reduction and circularity.
(g) Plant accidents
Should a major accident such as explosion or fire arise at a plant built or under construction and the Group isdetermined to be at fault, our liability for damage compensation could affect our business results.
With safety design and construction site accident prevention as top priorities, the Group takes all possible quality
control, construction safety management, and other measures to prevent such unforeseen circumstances fromarising. In addition, we seek to mitigate such risks by obtaining appropriate insurance coverage and securingcontract terms that reasonably share the risk of such losses with the client. The Group is committed to fostering
a culture of safety and we collectively refer to our various initiatives to ensure construction safety as ‘C-Safe’,
which stands for Chiyoda’s Safety Culture.
(h) Currency risk

11

Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

Because amounts to be paid for equipment, materials, and subcontracted work for overseas projects can be incurrencies that are different to our client payments, fluctuating exchange rates could affect our business results.
The Group endeavors to mitigate currency risk by receiving payments for work in the currencies in which we
expect to make payments ourselves and also through forward currency exchange contracts.
(i)Compliance violations

In expanding our business domestically and overseas, the Group must comply with the laws and regulations of
the various countries in which we have our corporate headquarters, subsidiary companies, representative
offices, and construction sites. In the unlikely event that we violate, or are suspected of violating, such laws or
regulations, there could be a significant impact on project execution or our business operations.
In order to prevent violations, and also to avoid coming under such suspicion, the Group continuously educates
our employees through programs such as group training and e-learning. In doing so, we thoroughly disseminate
information about the latest laws, regulations, and rules that are relevant to our business execution, including
those pertaining to protecting human rights and preventing corruption. We also constantly work to assess trends
among our stakeholders, including domestic and foreign agencies and clients. Furthermore, in order to ensurethat compliance is incorporated into our business processes, we have established a Compliance Committee
chaired by the Chief Compliance Officer (CCO) with the divisional Compliance Officers as its members, as well
as a Group Company Compliance Liaison Committee, also chaired by the CCO, with the subsidiary presidents
as its members.
(j)Information security threats

The Group controls a large volume of client and counterparty information that is necessary to execute ourbusiness, and we also possess confidential information about technologies, sales, and other aspects of ourbusiness. Much of our core work and commercial activities are carried out making full use of state-of-the-art IT
systems at various locations around the world. We mitigate risks by reinforcing protective measures to prepare
for cyberattacks on important data system and network installations. However, an unforeseen event could causea system failure, leak of confidential information, cyber fraud, or loss of important business information that
could affect our business. Cyberattack risks on companies have recently increased, triggered by the geopoliticalcrisis in Ukraine.
Our headquarters and two overseas group companies have obtained ISMS*1 certification and Chiyoda X-ONEEngineering Corporation, established in April 2023, is working towards certification. Based on the ISMS
certification and NIST CSF*2, the Group is establishing and strengthening a system that is conscious of
information security in the supply chain. The Group works to mitigate these risks through rigorous information
security management practices, such as regular education and audits.
(k) Business investment losses
The Group may make business investments such as establishing new companies and financing and acquiringexisting companies. In making these investments, we may provide substantial amounts of equity capital or credit
in the form of loans or guarantees. As a result, there are certain risks. An investee may fail to meet its earnings
targets due to changes in the business environment, we may incur losses on the investment due to poor
business results, or we may encounter a situation in which additional financing is required.
In addition to thoroughly examining a proposal in advance based on our own internal standards and rules, theGroup only decides to invest and finance after carefully considering our financial capacity relative to the risk oflosses. After making an investment, we monitor the investee’s business plan progress and provide support in
the form of personnel or capital if necessary in order to prevent or minimize losses.
(l)Important Events concerning Going Concern Assumption

Zachry, a partner of one of the Group subsidiaries to execute the Golden Pass LNG project in Texas, U.S., filed
for Chapter 11 relief under the United States Bankruptcy Code on May 21, 2024 in the U.S time. Considering
the potential impacts related to the possibility of Zachry’s withdrawal from the Project as a subsequent event
after reporting period based on the generally accepted accounting principles, on a consolidated basis, we havereported JPY 15,006 million as Operating Loss, JPY 5,461 million as Ordinary Loss, JPY 15,831 million as Loss

12

Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

Attributable to the Owners of the Parent for the fiscal year ended March 31, 2024. In addition, on a nonconsolidated basis, total liabilities exceeded total assets by JPY 7,950 million. We recognize that these
conditions indicate the existence of events or conditions, which may cast significant doubt on our ability tocontinue as a going concern.
In response to these situations, we will take the following measures:
Regarding the Golden Pass LNG project, the project customer was granted permission from the court to placeorders for business operations such as safety-related tasks or infrastructure development tasks required forcontinuing local construction work. Following such permission, our customers officially placed orders with CIC
and CB&I and such business operations have been resumed. Procedures for payment of required funds to CIC
and CB&I in response to such progress has been commenced as well. On June 18, 2024 in the U.S. time, theproject customer filed motions for requesting Zachry’s withdrawal from the project and for lifting the Automatic
Stay to resume construction work of Train 1.
Soon after the court make an official judgement concerning Zachry’s withdrawal from the project, we aim toagree with the project customer, CB&I and CIC short-term and long-term plans to complete construction , and,upon agreement, we will re-calculate the estimated contract amount and total costs based on its contents.
Based on our previous five-year Revitalization Plan, we have implemented various measures including
strengthening risk management system and have achieved certain results. However, considering the current
situation, we will further strengthen partner risk management and strive to ensure a stable profit-making base.
In terms of finance, considering Zachry's withdrawal from the Golden Pass LNG project, we have conducted areassessment and determined that it will not have a significant impact on our future cash flow, and there are no
major concerns regarding the continuity of our business activities. Additionally, we have maintained close
communication and a strong collaborative relationship with our financial institutions.
Based on the above, we have concluded that no material uncertainty exists regarding the going concern.

*1 ISMS: Information Security Management System*2 NIST CSF: Cybersecurity Framework issued by National Institute of Standards and Technology to improvecyber security for critical infrastructure

2.

Accounting Standard Selection Policy

The Group implements the Japan Accounting Standard for the time being considering the availability of period
comparison and business-to-business comparison of consolidated financial results. The Group will takenecessary actions to comply with International Accounting Standards considering business trends in Japan.

13

Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivablefrom completed construction contracts,
and contract assets
Costs on construction contracts inprogress
Accounts receivable - other
Jointly controlled assets of joint venture
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and vehicles
Accumulated depreciation
Machinery and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

14

As of March 31, 2024

61,241102,072

35,034

27,58823,57018,87439,900161,643
47,57815,629(1,639)382,958

35,818147,017
66,2008,810(2,021)
404,359

15,413(10,838)
4,575
1,837
(1,487)350
6,592(5,849)
742
5,041
33
10,743
4,748

13,036(8,784)
4,252
1,799(1,474)324
6,656(5,668)
987
4,552
768
10,886
5,493

6,442
167
139
1,405
(18)
8,137
23,629406,588

4,272
483
94
1,396
(18)
6,228
22,608426,967Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes payable, accounts payable forconstruction contracts
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Contract liabilities
Provision for warranties for completed
construction
Provision for loss on construction
contracts
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Provision for treatment of PCB waste
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeNon-controlling interests
Total net assets
Total liabilities and net assets

15

As of March 31, 2024

129,370

133,775

5,490
17,461
2,046
163,347

20,00018,760987
188,701

1,388

1,601

27,89436,5085,120
4,136
356,256

3,715
8,104
412,156

23,600
323
236
804
3,056
28,021
384,278

3,600
1,471
－
727
2,933
8,732
420,889

15,014142
13,797(847)
28,10715,014142(1,962)(805)
12,389

69

(18)

1,707
(7,587)
(115)

4,176
(11,851)
163(5,926)(7,530)129
22,310406,588

1,218
6,077
426,967Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

(2) Consolidated Statement of Income and Comprehensive Income(Consolidated Statement of Income)(Millions of yen)
Fiscal year ended
March 31, 2023

Net sales of completed construction contracts
Cost of sales of completed construction
contracts
Gross profit (loss) on completed construction
contracts
Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using
equity method
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on liquidation of subsidiaries andassociates
Gain on sale of shares of subsidiaries andassociates
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on termination of retirement benefit
plan
Loss on valuation of investment securities
Loss on liquidation of subsidiaries andassociates
Loss on liquidation of investment securities
Office consolidation expenses related todomestic business integration
Loss on valuation of shares of subsidiaries
and associates
Loss on sale of investment securities
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit attributable to non-controlling interests
Profit (loss) attributable to owners of parent

16

Fiscal year ended
March 31, 2024

430,163505,981

397,454506,138

32,709(157)

14,592
18,116

14,849(15,006)

2,958
1,216
183
4,357

11,252
1,001
284
12,537

897

696

413

596

593
247
2,152
20,322

1,534
164
2,992
(5,461)

360

45

231

－

95
686

－
45

－

665

18

69

0

6

－

2

94

－

61

－

5
179
20,829
5,511
117
5,629
15,20012
15,187－743(6,159)
8,488
51
8,539
(14,698)
1,132(15,831)Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

(Consolidated Statement of Comprehensive
Income)(Millions of yen)
Fiscal year ended
March 31, 2023

Profit (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans,
net of tax
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable to noncontrolling interests

17

Fiscal year ended
March 31, 2024

15,200(14,698)

(14)

(87)

50
(7,914)2,469(4,259)

(871)

278

343

10

(8,406)
6,794(1,589(16,287)

6,771(17,435)

22

1,147

Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

(3) Consolidated Statement of Changes in Equity
Previous consolidated fiscal year (April 1, 2022- March 31, 2023)(Millions of yen)
Shareholders' equity
Share capital
Balance at
beginning of period
Cumulative effects
of changes inaccounting
policies

15,014

Restated balance

15,014

Capital surplus

Retained earnings

142(1,142)(849)

13,165(247)
142

Changes during
periodProfit (loss)
attributable toowners of parent
Purchase oftreasury shares(247)(1,390)(849)

12,917

15,187

Disposal oftreasury shares
Net changes in
items other thanshareholders'equityTotal changes
during period
Balance at end of
periodTreasury shares Total shareholders'equity15,187

(0)

(0)

2

2

－

－

15,1871

15,18915,014142

13,797(847)

28,107

Accumulated other comprehensive income
Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedgesBalance at
beginning of period
Cumulative effects
of changes inaccounting
policies

83

1,656

Restated balance

83

Total
Foreign Remeasurem accumulated
currency
ents ofothertranslation
definedadjustment benefit plans comprehensi
ve income

(6)

755

2,489

Noncontrollinginterests

106

Total net
assets

15,761

(247)
1,656

(6)

755

2,489

106

Changes during
periodProfit (loss)
attributable toowners of parent
Purchase oftreasury shares

15,514

15,187(0)

Disposal oftreasury shares
Net changes in
items other thanshareholders'equityTotal changes
during period

(14)

50

(7,581)(871)(8,415)22(8,393)(14)

50(7,581)(871)(8,415)22

6,795

Balance at end of
period69

1,707(7,587)(115)(5,926)

129

22,310218Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

Current consolidated fiscal year (April 1, 2023-March 31, 2024)(Millions of yen)
Shareholders' equity
Share capital
Balance at
beginning of period

Capital surplus

Retained earnings

142

13,79715,014

Changes during
periodProfit (loss)
attributable toowners of parent
Purchase oftreasury shares

Treasury shares Total shareholders'equity(847)(15,831)(15,831)

Disposal oftreasury shares
Change in scopeof consolidation
Net changes in
items other thanshareholders'equityTotal changes
during period
Balance at end of
period28,107

(0)

(0)

41

41

71

71

－

－

(15,759)41(15,717)

15,014142(1,962)(805)

12,389

Accumulated other comprehensive income

Balance at
beginning of period

Valuationdifference on
available-forsale
securities

Deferred
gains orlosses onhedges

69

1,707

Total
Foreign Remeasurem accumulated
currency
ents ofothertranslation
definedadjustment benefit plans comprehensi
ve income(7,587)(115)(5,926)

Noncontrollinginterests

129

Total net
assets22,310Changes during
periodProfit (loss)
attributable toowners of parent
Purchase oftreasury shares(15,831)

Disposal oftreasury shares

41

Change in scopeof consolidation
Net changes in
items other thanshareholders'equityTotal changes
during period

71

(87)

2,469

(4,264)278(1,604)

1,089

(514)

(87)

2,469

(4,264)278(1,604)

1,089(16,232)

Balance at end of
period

(18)

4,176

(11,851)

163(7,530)

1,218

6,077

(0)

19

Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

(4) Consolidated Statement of Cash Flows(Millions of yen)
Fiscal year ended
March 31, 2023
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful
accounts
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in provision for loss on
construction contracts
Increase (decrease) in provision for bonuses
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on valuation of investment securities
Loss (gain) on sale of investment securities
Loss (gain) on liquidation of investment securities
Loss (gain) on liquidation of subsidiaries andassociates
Loss on valuation of shares of subsidiaries andassociates
Loss (gain) on sale of shares of subsidiaries andassociates
Office consolidation expenses related to domestic
business integration
Decrease (increase) in trade receivables
Decrease (increase) in costs on construction
contracts in progress
Increase (decrease) in trade payables
Increase (decrease) in contract liabilities
Decrease (increase) in accounts receivable - other
Increase (decrease) in accounts payable - other
Decrease (increase) in jointly controlled asset of
joint venture
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities

Fiscal year ended
March 31, 2024

20,8293,195
33(6,159)
3,399
33

105

354

(2,075)

180(11,713)

6,743

1,898
(848)
(4,174)897(929)(1,409)59(12,253)
696(1,542)

413

596

18
(89)
－

69
－
2

(359)

(39)

61

－

(231)

－

94

－

5,914

(2,642)(4,259)5,207

25,934
14,536
47,837(26,582)

13,83322,603(1,811)
995(16,639)

15,313(4,791)49,074
1,519(792)(5,644)
44,15723,862
68,0962,681(650)(7,378)62,747(Millions of yen)

20

Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

Fiscal year ended
March 31, 2023
Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale of investment securities
Proceeds from liquidation of subsidiaries andassociates
Loan advances
Proceeds from collection of loans receivable
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from
inclusion of subsidiaries in consolidation
Cash and cash equivalents at end of period

21

Fiscal year ended
March 31, 2024

10,107(948)
4(1,836)(2,001)
1,312

(291)
(1,757)630(2,129)
(99)
1,600

21

37

(194)
1,424
－
7,889

(4)
435
12
(1,567)3,600(20,130)(526)(17,057)－(5,490)(361)(5,851)

2,593

3,948

37,582
69,09959,277
106,682－249

106,682

166,208

Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

(5) Notes(Notes concerning Going Concern Assumption)
None(Additional Information)(Performance-based Stock Compensation System for Directors, etc.)
Based on the resolution of the 93rd Ordinary Shareholders Meeting held on June 23, 2021, we introduced aperformance-based stock compensation system for directors and executive officers (excluding non-executive
directors and overseas residents; collectively referred to as “Directors, etc.") with the aim of enhancing theirawareness of contributing to the long-term improvement of our company's performance and increasing
corporate value.
The accounting is treated as a transaction under common control in accordance with applicable Japanese laws
and/or guidelines.
1. Summary of transaction
We have adopted a system called the officer compensation Board Incentive Plan Trust (BIP Trust), underwhich, upon the retirement of Directors, etc., we provide them with shares of our company acquired throughthe BIP Trust and cash equivalent to the fair value of the disposed shares of our company, based on factors
such as their position and the achievement of performance goals.
2. Remaining Shares of our company in the BIP TrustWe record the remaining shares of our company in the BIP Trust as Treasury shares in Net assets basedon the book value in the trust (excluding associated expenses). The book value and number of shares of
the treasury stock were 373 million JPY and 904,689 shares for the previous consolidated fiscal year and
331 million JPY and 803,129 shares for this consolidated fiscal year.
(Merger of Consolidated Subsidiary Companies)
At the Board of Directors meeting on December 27, 2022, it was decided that Chiyoda’s three consolidated
subsidiary companies, Chiyoda Kosho Co. Ltd, Chiyoda System Technologies Corporation and Chiyoda
TechnoAce Co. Ltd, would merge in an absorption-type merger. On April 1, 2023, three companies weremerged.
1.

Summary of Absorption-Type Merger(1) Name of the merged companies and their business
Surviving company
Chiyoda Kosho Co. Ltd.
Business
Energy, environment and maintenance
Merged company
Business

Chiyoda System Technologies Corporation
Electrical and instrumentation solutions

Merged company
Business

Chiyoda TechnoAce Co. Ltd.
Life science(2) Date of merger
April 1, 2023
(3) Legal form
Absorption-type merger(4) Name of the Surviving Company
CHIYODA X-ONE Engineering Corporation (Former Chiyoda Kosho Co. Ltd.)(5) Other information regarding the summary of merger
The merger took place to increase business efficiency by merging the three companies’ businessresources and commence business as a leading integrated engineering contractor, possessing the22Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

comprehensive technologies required for the engineering, procurement and construction of industrial
plants and facilities and develop its maintenance engineering business, optimizing the technologicalcapabilities, experience and track record accumulated by the three companies.
2.

Outline of accounting treatment
The accounting is treated as a transaction under common control in accordance with applicable Japaneselaws and/or guidelines.

(Subsequent Events after Reporting Period)
Since the possibility of withdrawal of Zachry Industrial, Inc. (‘Zachry’), one of the partners for Chiyoda and its
wholly owned Houston, Texas headquartered subsidiary, Chiyoda International Corporation (‘CIC’) to execute
the Golden Pass LNG project (‘GPX Project’) in Texas, U.S., from the Project arose, discussions among
Golden Pass LNG Terminal LLC (‘GPX’) in the U.S., the Project customer, CB&I LLC (‘CB&I’), a joint venture
partner in the U.S., and CIC on a possible new organizational structure to continue the Project and complete
construction have been continuing. A consensus was yet to be reached, and subsequently, Zachry filed for
Chapter 11 relief under the United States Bankruptcy Code on May 21, 2024 in the U.S time, which, as wellas other related matters, should be treated as the subsequent events after reporting period, which require
adjustment of the financial stataments.
In the fiscal year ended March 31, 2019, GPX awarded a contract to the joint venture of Zachry, CB&I and
CIC for the design, procurement, construction, and commissioning of a gas liquefaction facility at the Golden
Pass LNG terminal in Sabine Pass, Texas. CIC’s main scope of work , including design and procurement, isalmost complete. Construction is ongoing and overall project already completed 75% as of this fiscal year
ended March 31, 2024. GPX, CB&I and CIC are having discussions about an execution plan to work together
to achieve the successful completion of the GPX Project.
GPX was granted permission from the court regarding to place orders for business operations such as safetyrelated tasks or infrastructure development tasks required for continuing local construction work. Following
such permission, our customers officially placed orders with CIC and CB&I and such business operations
have been resumed. Procedures for payment of required funds to CIC and CB&I in response to such progresshas been commenced as well. On June 18, 2024 in the U.S. time, GPX filed motions for requesting Zachry’s
withdrawal from the project and for lifting the Automatic Stay to resume construction work of Train 1. Shortterm and long-term plans to complete construction will be agreed among the project customer, CB&I and CIC
soon after the court make an official judgement concerning Zachry’s withdrawal from the project and, upon
agreement, we will revise the estimate based on its contents. Discussions about a short-term execution planfor continuation of the project and a long-term execution plan for completion of the project among GPX, CB&I
and Chiyoda/CIC have been continuing in preparation for a court official decision.
Under these circumstances, for the fiscal year ended March 31, 2024, we estimated the total costs to be
incurred to complete construction the contract amount based on the signed documents as of the date of thisreport, considering the possibility of Zachry’s withdrawal from the project. Upon agreement on short-term/longterm execution pan, we will re-calculate the aforementioned estimates based on its contents.

23

Chiyoda Corporation (6366)
Consolidated Financial Results for the Fiscal Year Ended March 31, 2024

4.

Contracts and Sales(Millions of yen)
Apr. 1, 2022－Mar. 31, 2023
Segments

1. Engineering(1) LNG Plant
Energy(2) Gas Related Work
(3) Refinery/
Petrochemical(4) Pharmaceutical/
Biochemistry/
ChemicalGlobal(5) Environment/New
Environment
Energy/Infrastructure(6) Others
2. Other Business
Total
Domestic
Overseas

Apr. 1, 2023－Dec. 31, 2024

New
Contracts,
ratio

Net Sales,
ratio

Backlog ofContracts,
ratio

New
Contracts,
ratio

Net Sales,
ratio

Backlog ofContracts,
ratio

154,347
99.6%
55,508
35.8%
5,223
3.4%
35,92923.2%
26,75017.2%

429,535 1,148,890
99.8%
100.0%
239,315
811,656
55.6%
70.6%
3,068
5,162
0.7%
0.5%
29,551
26,655
6.9%
2.3%
34,096
42,6987.9%
3.7%

236,975
99.8%
48,494
20.4%
1,936
0.8%
37,402
15.8%
89,23337.6%

505,41299.9%
241,931
47.7%
2,190
0.6%
30,347
6.0%
31,116
6.2%

993,878
100.0%
708,960
71.3%
4,158
0.4%
32,214
3.2%
98,0219.9%

25,851
16.7%
5,085
3.3%
627
0.4%
154,975
100.0%
87,161
56.2%
67,81343.8%

119,227
259,129
27.7%
22.6%
4,275
3,589
1.0%
0.3%
627
－
0.2%
－
430,163 1,148,890
100.0%
100.0%
93,18992,24721.7%
8.0%
336,974 1,056,643
78.3%
92.0%

53,675
22.6%
6,233
2.6%
569
0.2%
237,545100.0%
122,818
70.7%
50,92029.3%

194,712
38.5%
4,383
0.9%
569
0.1%
505,981100.0%
85,404
16.9%
420,57683.1%

145,055
14.6%
5,467
0.6%
－
－
993,878
100.0%
164,237
16.5%
829,64083.5%

24