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

November 10, 2023

The presentation was conducted in Japanese.

IR, PR & Sustainability Advanced Section

This document is a translation/summary for

Corporate Services Department

reference only.

Chiyoda Corporation
Summary of a Q&A session following the Presentation of theSecond Quarter Financial Results for Fiscal Year Ending March 31, 2024

The following is a summary of a Q&A session following the presentation (online conference) of Chiyoda
Corporation’s (Chiyoda) financial results for the second quarter of fiscal year ending March 31, 2024,
released on November 2, 2023.
No1

Question

AnswerRevenue
Revenue achieved 60% of•

As in the first quarter, large-scale overseas projects havethe full year forecast, but the

been progressing, and the weak yen also contributed to an

forecast remains unchanged.

increase in revenue.

What is your expectation for•

Revenue will progress at the same ratio in the third quarter

revenue in the third quarterand beyond, and since it has not exceeded the scope that theand beyond?

disclosure of revised estimates is required, the full year
forecast remains unchanged.

23Gross profit margin
At 6.5%, why was the gross

The main reason is that, as part of our risk management process,profit margin below the full

we recorded costs on an energy project that was considered

year forecast of 7.8%?

reasonable to maintain construction progress.

What is the outlook for

By steadily executing ongoing projects, we will continue towards

achieving the full year

achieving the full year forecast in the second half of this fiscal

forecast of 7.8%?

year.

New orders forecast
What is the outlook for new•

The appetite for capital investment in fields such asorders in the second half ofdecarbonization, advanced materials and life science

this fiscal year and beyond?

remains strong in Japan, and the government is offering

Do you expect to receive any

subsidies for many projects. Although the size of domestic

1

No

Question

Answerlarge overseas orders?

projects is not large compared to those overseas, we aim toaccumulate orders, primarily in Japan, to reach 300 billion
yen for the full year target.
•Large-scale overseas projects are expected to be LNG
projects and we have received many requests for feasibility
studies and FEEDs related to decarbonization which weexpect securing in the future.

In which regions are large•scale energy projects
expected?

There are four regions to focus on: the Middle East, Asia,
Australia and the USA.

•We will decide on orders for LNG and other large projects
after thoroughly assessing their individual risks and returns.

45Long-term borrowings
What is the reason for theThe 20 billion yen subordinated loan borrowed from MUFG Bank,decrease in long-term

Ltd. is due within one year and has been transferred from non-borrowings on the balancecurrent liabilities (current portion of long-term borrowings) tosheet?

current liabilities.

The Situation in the Middle East
Will there be any impact on

At this point, there is no impact on ongoing projects in Qatar,

human resources, logistics

but we will continue to monitor the situation closely as it

etc due to Israel's problems

remains unpredictable.

in the Middle East?

6••

A robust investment appetite is currently seen in Qatar dueIn particular, will there be any

to its competitive gas prices, which are among the lowest in

impact on ongoing projects inthe world. We monitor trends closely while steadily advancing

Qatar?

ongoing projects.

Assessment of the overall financial results and progress of the Revitalization Plan
How do you assess: (1) the(1) Overall assessment of the second quarter results:

overall financial results for theFollowing last year’s 10 year record profit, net income has

second quarter of the fiscal

steadily increased in the first half of the year.

year ending March 31, 2024,and (2) the progress of the(2) Progress of the Revitalization Plan

Revitalization Plan?

•After reporting a loss for the fiscal year ended March 31,2

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

NoQuestion

Answer
2019, Chiyoda initiated the Revitalization Plan with financial
support of 180 billion yen and human resources from
Mitsubishi Corporation and MUFG Bank, Ltd. Since then, theGroup has endeavored to improve its risk management
structure and EPC execution management and expand andenhance its human resource systems.
•Chiyoda established the Strategy & Risk Integration Division
to improve its risk management structure and ensure
thorough risk management from pre-award to the executionof projects.

•There has not been a single loss-making project since theRevitalization Plan was implemented and profits havesteadily accumulated, resulting in last year’s record profits.

•In the second half of this fiscal year and during the first periodof the next medium-term management plan, scheduled forrelease in the next fiscal year, Chiyoda aims to improve cash
flow and increase profits further, repaying the financial
support and strengthening the balance sheet.

We will provide further details upon the release of the next
medium-term management plan, together with the financial
results presentation for this fiscal year, in May 2024.
-End-Please submit inquiries to:
IR, PR & Sustainability Advanced 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 to depend
solely on these projections for making investment decisions.

3