Chiyoda’s Revitalization Plan
Six Month Progress Update

November 5, 2019
Chiyoda Corporation© Chiyoda Corporation 2019, All Rights Reserved.

Agenda1. Overview of the Revitalization Plan
2. Strengthening the Financial Base
3. Enhancing EPC Execution and Management Capacity
4. Digital Transformation
5. The “New Values” Engineering Challenge
6. Ongoing Major Projects© Chiyoda Corporation 2019, All Rights Reserved.

11. Overview of the Revitalization Plan
Revitalization PlanFY 2023（5yrs later)

 Further develop therisk management
structure Project Life cycle
 Transform to apartner to maximize
company that stably
the clients’ asset
generates a net profit
valueof JPY 10bn-20bn peryear
 Integration partner toprovide compound Shareholder’s equity
system fit for complex
ratio:< 20%energy needs &restrictions

 Enhance EPC
execution andmanagement
capacity Reinforce humanresources© Chiyoda Corporation 2019, All Rights Reserved.

Long Term Vision

 Incubation partner for
future technology
development to solve
challenges in energy
and global
environment22. Strengthening the Financial Base
In 2019/3 4Q negative shareholder’s equity was cleared and the financial basewill be further strengthened by future company growth.
(Billions of JPY)

Incresae in Shareholder’s Equity
20/3 1Q

19/3 4Q

20/3 2Q
ShareAllocation
70.0

Gross
Profit
9.0

SQ&A
(4.0)
(1.8)

Tax
(0.7)

Other
comprehensive
income, etc.

2.1

Non-operating& Extraordinary
income expenses

Grossprofit13.0

Shareholder’sEquity(60.1)

SQ&A
(4.0)

Other
comprehensive
income
etc.

(5.0)

Tax
(1.8)

Non-operating& Extraordinary income
expenses© Chiyoda Corporation 2019, All Rights Reserved.

Shareholder’sEquity:19.0【Ratio: 4.9%】

2.3
Shareholder’sEquity(55.6)

3

3. Enhancing EPC Execution and Management Capacity
Strengthening thecompetitiveness
Organization

organizationandpromoting

initiatives

toreinforce

 CCMO (Chief Construction Management Officer) was appointed.
 “Construction Execution Strengthening Committee” establishedwith integration of relevant organization
 "Chiyoda AWP": Integrating our knowledge with the bestpractice (Advanced Work Packaging) advocated by U.S.
construction industry institution. Reviewing previous EPC work
procedures and management methods, and apply to ongoingand new projects.

Initiatives

 Construction IoT: a) Improving material management efficiency
using RFID (Radio Frequency IDentifier); b) Enhance labor andsafety management using beacons. Both will be applied onfuture projects.
 “Target 20”: Promoting 20% improvement of EPC project and inhouse Corporate Division efficiency through company-wide
digitalization.

© Chiyoda Corporation 2019, All Rights Reserved.

44. Digital Transformation
Organization

VisionEstablishment of “Digital Transformation Division”
Implementation of revitalization plans based on evolving digitaltechnologies and promotion of digital transformation
Formation of Non-EPC business
Revitalizationandthe Future

New Digital BusinessMaximize Value of Customer Assets <O&M Process Optimization >◆ LNG AI Plant Optimizer TM （Improved LNG production efficiency）◆ ADNOC LNG: MoU for digital technologies

SystemLaunch

DigitalHRDevelopment

Digital EPC◆ Digital EPC Application◆ Chiyoda AWP◆ Data Management, etc.

Target 20
MindsetChangeTransformation* RPA: Robotics Process Automation© Chiyoda Corporation 2019, All Rights Reserved.

WorkflowImprovement

Enhance EPC businesscompetitiveness

RPA*Corporate
Work-life Balance(work-style reform)

55. The “New Values” Engineering Challenge
OrganizationVision

Competence“Frontier Business Division” established
Resolve problems in the fields of A) Energy /Environment, B) Social issues
through business activities, C) Life science

Chemical engineering knowledge, process development, scale-up
technology, technology expertise and integration

A)Environment/Energy

 Demand expansion
 Climate challenges
 Decentralization➊ Commitment to strive towards a Low
Carbon Society➋ Establishing an ecosystem with companies
that emphasize environmental values➌ Efficiency of sustainable energy
management : Focus on integrity of
renewable energy

Realize a net zero
emission society
Realize a resilientand distributedsocietyB) Social challenges/business progression Aging Technical tradition Local stagnation
 Resilience➍ Business solutions which realize
corporate sustainability(raise economic and social value)

Realize a society
where industriesand regions
continue to prosperC) Life science Sustainability of
Insurance system Intractable disease➎ Accelerate pharmaceutical business(drug development: aiming for costs
reduction in production and for developmentof drugs for intractable diseases)

Realize asustainable andhealthy society© Chiyoda Corporation 2019, All Rights Reserved.

66. Ongoing Major Projects (1/2)
Project

Freeport LNG

Cameron LNG

ClientFreeport LNG

Cameron LNG

Partner

ZachryMcDermott

McDermottCompletion

Train-1 & 2：Approx. 99％
Train-3：Approx. 96％

Approx. 96％

Status（Sep. 2019）

 Train-1：Commenced LNG
production in August for export
in September 2019

 Train-1：Commercial operationcommenced in August 2019

 Planned LNG production
Train-2: 4Q/2019
Train-3: 1Q/2020

 Planned LNG production
Train-2:1Q/2020
Train-3:2Q/2020

 Approx. 4,500 workers on site.

 Approx. 5,900 workers on site.

© Chiyoda Corporation 2019, All Rights Reserved.

7

6. Ongoing Major Projects (2/2)
Project

Tangguh LNG

Texas Ethylene

Golden Pass LNG

ClientBP Berau

Gulf Coast GrowthVentures（ExxonMobil
SABIC JV）

Golden Pass Product（ExxonMobil QP JV）

Partner

Saipem
TripatraKiewitZachryMcDermottCompletion

Approx.65％

Approx.40％

Approx.4％

Status（Sep. 2019） Target completion:
3Q/2021 Target completion:
4Q/2021 Target completion:
2025

 Constructioncommenced

 Module constructioncommenced inChina

 Engineeringongoing Installation of mainheat exchanger
complete.

© Chiyoda Corporation 2019, All Rights Reserved.

 Constructioncommenced on site8Any projections included in these materials are based solely on information available atthe time this presentation was prepared. It is possible that actual results may varysignificantly from the projections due to a number of risk factors such as economicconditions. 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 theseprojections for making investment decisions.
Please address inquiries to:
Chiyoda Corporation
IR, PR & CSR Department
Tel. +81-45-225-7734
https://www.chiyodacorp.com/en/© Chiyoda Corporation 2019, All Rights Reserved.