Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

The presentation was held in Japanese.

May 17, 2021

This document is a translation/summary

IR, PR & CSR Section

for reference only.

Corporate Services Department
Chiyoda Corporation

Summary of a Q&A session following the Presentation of the Financial Resultsfor Fiscal Year Ending March 31, 2021
The following is a summary of a Q&A session following the presentation (telephone conference) ofChiyoda Corporation’s (“Chiyoda”) financial results for fiscal year ending March 31, 2021, releasedon May 7, 2021.

Ⅰ. Presentation MaterialQuestion
1Answer

How did COVID-19 affect the 4Q The impact of COVID-19 was covered by provisions prior
results? What were the plus to the 3Q. There was no special plus factor for earnings.
factors for 4Q earnings?

The reason why gross profit in 4Q improved compared
to 3Q was that there were no minus factors (such as
COVID-19).

2

What is the capitalized estimation A certain amount of the cost for estimation of projects iscost of projects with uncertain capitalized and charged as a cost when a project isprogress amortized in 4Q?

awarded.

Chiyodaamortized

somecapitalized

estimation costs of uncertain projects in 4Q, considering
the uncertain business environment.
3

Without the amortization in 4Q,

Chiyoda could have achieved the forecast gross profit

did Chiyoda secure the forecast

without amortization.

gross profit rate of 9.3%?
4

What is the reason for the small The gross profit in the Energy field in 4Q is affected bygross profit in the Energy field, but amortization of capitalized estimation cost.
the large gross profit in the Global Conversely, projects in the Global Environment with aEnvironment?

high gross profit margin progressed beyond expectationin 4Q, although in 3Q COVID-19 lowered the profit level1Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

Question

Answerin the Global Environment field.

5

How is the profitability of the North Chiyoda expects a certain amount of earnings and isField Expansion project in Qatar?

confident that we will achieve them by executing theproject as planned. Chiyoda will be executing the project
for approximately six years and we expect limited
earnings in the first year because the progress is mainlyin the engineering stage, but we expect stable
contributions to earnings after FY2022.

6Why have revenue and profit The forecast revenue for FY 2021 is anticipated toforecasts in FY2021 decreased reduce compared to FY2020, however the gross profit
compared to FY2020?

and operating profit will increase because Chiyoda
does not expect minus factors such as COVID-19.
The reason why the forecast revenue has decreased isthat some existing large-scale projects were completed,or are coming close to completion, and someprospective projects are delayed or cancelled. The fullcontribution to earnings from the North Field Expansion
project in Qatar is expected after FY2022.
The forecast profit is anticipated to decrease because
Chiyoda does not receive an income tax refund in theUSA.

7

Why have revenue and profit In FY2019, Chiyoda saw steady progress in large-scale
forecasts in FY2020 decreased projects in addition to a one-time receipt of an incentive
compared to FY2019?

bonus. In FY2020, large-scale projects were in the laststage of construction with minus factors such as
COVID-19.

2

Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

Ⅱ. Revitalization Plan Update
Question
1Answer

Does the updated Revitalization Reaching the target for accumulation of profit isPlan

includequantitative anticipated to be delayed by 2-3 years due to FID delays

changes?

of new orders as a result of external factors. For othertargets, Chiyoda will not change the quantitative goals.

2The graph “Business Portfolio Chiyoda aims to be awarded subsequent North Field
Transformation” on P12 shows the Expansion projects in Qatar. We are also discussing aprofit from EPC in existing fields Copper Smelter project with a client in Indonesia.
will be the same until 2030. What Although we will not aim for a large number of projects
is the basis of this assumption?

following NFE, we expect stable revenues if these arerealized.

3

The updated Revitalization Plan

The North Field Expansion project in Qatar willshows Chiyoda’s carbon neutral

contribute to revenue for 6 years and Chiyoda isbusiness will launch in mid-2020.

discussing subsequent NFE projects with the Qatari

How does Chiyoda view the next

government. We are also discussing a Copper Smelter

5 years?

project with a client in Indonesia.
Chiyoda expects that new business will contribute to ourearnings after mid-2020, while we make steady profits inEPC in existing fields.

4

What is Chiyoda’s strategy for As the slide on P8 shows, we will monitor how theLNG in the USA under President world’s strategy for energy sourcing will change towards
Biden, taking the USA’s energy a decarbonized society in the short, medium and longsource strategy into account?

terms.
The demand for natural gas and LNG will be stable, as
they realistically balance the increasing demand forenergy (essential for global economic development)
and a decarbonized society. Conversely, green energy
will increase gradually as oil demand falls and we will
allocate resources accordingly.

5

What is Chiyoda’s view of the The volume of oil production does not affect Chiyoda’s
announcement that OPEC will be business because Chiyoda’s current business is mainly

3

Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

Question

Answereasing oil production cuts?
6Theslideshows

focused on LNG.

recurring Chiyoda plans to make the hydrogen business 15% ofbusinesses is expected to cover total profit, approximately half of recurring businesses.
30% of profit. What is the ratio for Chiyoda expects that the hydrogen business will
the hydrogen business? When will commence contributing to revenue around 2025.
thehydrogenbusinessstart

contributing to profit?
7

What is Chiyoda’s strategy for the Chiyoda’s strategy is centered on its unique technologyhydrogen business including fuel of SPERA Hydrogen and, as an engineering company,ammonia?

we will supply the most appropriate combination oftechnologies
As for fuel ammonia, Chiyoda contributes mainly tomanufacturing facilities overseas and EPC for receiving
terminals in Japan. Chiyoda has already commenced
discussions with concerned parties.
As for liquefied hydrogen, Chiyoda has knowledge ofrefrigeration in LNG manufacturing and receives manyinquiries.

8What is Chiyoda’s strategy for Chiyoda targets for the supply cost of SPERA Hydrogenhydrogen in terms of supply cost?

to be JPY 30/Nm3 by 2030, the same as thegovernment, and we believe it is possible to achieve
this target cost. We are also working to reduce costs byimproving the catalyst and increasing manufacturing
volumes.

9What is the breakdown of the 1.75 million tons includes 0.75 million tons for domestichydrogen volume of 1.75 million use (hydrogen 0.45 million tons / fuel ammonia 0.3
tons in 2030 on slide p15? Please million tons) and 1 million tons for overseas use (Asiashow Chiyoda’s share of the 0.6 million tons, Europe 0.3 million tons, and others 0.1
hydrogen business in Japan.

million tons).
The planned volume of hydrogen and fuel ammonia inJapan is 3 million tons each by 2030, making Chiyoda’sshare of hydrogen 15% (0.45 million/3 million tons) and4

Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

Question

Answerfuel ammonia 10% (0.3 million/3 million tons).

10Please explain in detail, on slide The focus of the pharmaceutical industry shifts from low
p17, “the cell base culture CRO molecular to middle-molecular to biochemistry.
(Contract Research Organization) Pharmaceutical manufacturers and university researchbusiness&CDMODevelopment(Contract institutions face challenges of scaling up for

Manufacturing commercialization. Chiyoda takes up the challenge asOrganization) business. Does it their partner.
meanChiyoda

pharmaceuticalpossesses The pharmaceutical industry is the business field wheremanufacturing high proficiency is expected. Chiyoda considers goingfacilities?
11into the business balancing revenue and risk.

What is Chiyoda’s strategy for the Maintenance of existing plants is covered by Chiyoda
high demand for maintenance of Kosho. It is a field where we expect to secure earnings.
existing, aging plants?

Relationships with clients are also stable.
Demand for the modernization of aging facilities will
increase and Chiyoda Group will respond to the need.

-EndPlease address inquiries to:
IR, PR & CSR Section, Corporate Services Department: Tel. +81-45-225-7734

Note: Some additions and corrections have been made to simplify the content for readers. Any
projections included in these materials are based solely on information available at the time thispresentation was prepared. It is possible that actual results may vary significantly from the projections
due to a number of risk factors such as economic conditions. The results projected here should not
be construed in any way as being guaranteed by the Company. Investors are recommended not todepend solely on these projections for making investment decisions.

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