Translation

November 10, 2011

Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2012
Company name: CHIYODA CORPORATION
Listing:First Section of the Tokyo Stock Exchange
Stock code:
6366
URL:
http://www.chiyoda-corp.com/
Representative: Takashi Kubota, President & CEO
Inquiries:
Nobuo Sekita, General Manager, Accounting Department
TEL: +81-45-506-9410 (from overseas)
Scheduled date to file Quarterly Report: November 14, 2011
(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated performance for the second quarter of the fiscal year ending
March 31, 2012 (from April 1, 2011 to September 30, 2011)(1) Consolidated operating results (cumulative)
Net sales(Percentages indicate year-on-year changes.)

Operating income% Millions of yen

Millions of yen

Ordinary income% Millions of yen

Net income% Millions of yen

2Q ended September
109,551 (2.1)
6,448
21.0
6,547 116.5
3,16230, 2011
2Q ended September
111,916 (32.0)
5,329
3,024
2,886
30, 2010
Note: Comprehensive Income: 2Q FY2011: 1,308 million yen (43.4%) ; 2Q FY2010: 2,314 million yen (- %)Net income per share

2Q ended September
30, 2011
2Q ended September
30, 2010%
9.6-

Fully diluted net
income per share

YenYen12.21-

11.14-(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

As of September 30,
2011

321,948

154,187

47.7

As of March 31, 2011

353,392

155,758

43.9

Reference: Equity

As of September 30, 2011: 153,634 million yen-1-

As of March 31, 2011: 155,242 million yen

2.

Cash dividends
Cash dividends per share
Record date

First quarter

Second quarterThird quarter

Fiscal year-end

Annual

Yen
Yen
Yen
Yen
Fiscal year ended
11.00
March 31, 2011
Fiscal year ending
March 31, 2012
Fiscal year ending
March 31, 2012
10.00
(Forecast)
Note: Revision of the forecast in the second quarter of the fiscal year ending March 31, 2012: None

3.

Yen
11.00

10.00

Consolidated earnings forecasts for the fiscal year ending March 31, 2012
(from April 1, 2011 to March 31, 2012)(Percentages indicate year-on-year changes.)
Net sales
Millions of yen

Fiscal year ending
March 31, 2012

250,000

Operating income% Millions of yen
1.2

11,000Ordinary income% Millions of yen(37.3)% Millions of yen

12,000 (23.7)

Net income pershare

Net income

8,000%Yen

0.3

30.88

Note: Revision of the forecasts in the second quarter of the fiscal year ending March 31, 2012: None

4.

Others(1) Changes in Significant Subsidiaries during the Period (changes in specified subsidiaries
accompanying changes in the scope of consolidation): None
(2) Adoption of Specified Accounting Methods for the Preparation of Quarterly Consolidated
Financial Statements: None
(3) Changes in Accounting Policies and Accounting Estimates / Restatements
a. Changes in accounting policies due to revisions of accounting standards, etc.: Noneb. Changes in accounting policies other than a. above: Nonec. Changes in accounting estimates: None
d. Restatements: None
(4) Number of issued shares (common stock)a. Total number of issued shares at the end of the period (including treasury stock)
As of September 30, 2011
260,324,529 shares
As of March 31, 2011
260,324,529 sharesb. Number of treasury stock at the end of the period
As of September 30, 2011
1,231,247 shares
As of March 31, 20111,222,540 sharesc. Average number of shares during the period (cumulative from the beginning of thefiscal year)
For the Second quarter of the fiscal year ending March 31, 2012 259,097,734 shares
For the Second quarter of the fiscal year ended March 31, 2011 259,196,265 shares*Presentation of Implementation Status of Quarterly Review Procedure
The review procedure of quarterly financial statements based on the Financial Instruments and Exchange
Law has not been completed at the time of the disclosure of these Consolidated Financial Statements.
*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 other results may differ substantially due to a number of factors.

-2-

5.

Qualitative Information related to Consolidated Performance(1) Analysis Results
During the first half of the current consolidated fiscal year, the operating environment
surrounding the Chiyoda Group was characterized by an appreciating yen and electric
power shortages, which weighed heavily on the Japanese manufacturing industry andprompted many companies to step up the pace of their overseas businessdevelopment. By the end of the period, however, the Japanese economy wasbeginning to show signs of a modest recovery. Meanwhile, the outlook for the global
economy became increasingly uncertain, reflecting the credit insecurities emerging
from Europe, although energy demand remained solid in emerging economies,
particularly in Asia.
In these circumstances, the Group continued to focus its sales activities on responding
to the overseas operations of customers in Japan and the trend of shifting energy
demand to natural gas. The Group also sought to develop new business fields, suchas overseas infrastructure and new energy projects.
In Japan, the Chiyoda Group undertook construction work to help customers affectedby the Great East Japan Earthquake to restore their facilities in fields such aspetroleum, gas, chemicals, and pharmaceuticals. It also proceeded steadily with theexecution of backlog projects.
As a result of these activities, the Group posted consolidated new contracts of 87,649
million yen (a fall of 29.5% year on year), a consolidated contract backlog of 455,245
million yen (down 13.0%), and consolidated revenues of 109,551 million yen (down2.1%) in the first half. Primarily thanks to steady progress in projects and the decreaseof costs during the warranty period of completed work, the Group recorded operating
income of 6,448 million yen (an increase of 21.0% year on year), ordinary income of
6,547 million yen (up 116.5%), and net income of 3,162 million yen (a rise of 9.6%).
A summary of operating results of the Company’s reportable segment, engineeringbusiness, is as follows:(LNG plants/gas and power utilities)
Overseas, the Group continued to execute engineering, procurement, andconstruction (EPC) works for the LNG plant in Papua New Guinea and the gas
processing plant in Qatar. In Australia, the Group received an order for basic design
services, in addition to the execution of basic design services for two other LNG plants
which the Group has been providing. Our local subsidiary in Qatar entered into a newlong-term service contract and has been providing engineering, procurement, andconstruction management (EPCm) services for revamping and renovation projects at
LNG and gas processing plants constructed by the Group as well as for helium
extraction facilities.
In Japan, we continue to execute existing projects steadily, including the constructionof several LNG receiving terminals. We are also undertaking sales activities to receive
orders for another LNG receiving terminal.
(Petroleum and petrochemicals/gas chemicals)
Outside Japan, the Group directed its concerted efforts toward various investment
plans for petroleum refineries in the Middle East and Southeast Asia and continued to
execute EPC work for coker units in Saudi Arabia and EPCm services for petroleum
refineries in Singapore. We also continued to drive our sales activities to win orders for
petroleum refineries and petrochemical projects in Southeast Asia and the Middle East.
In Japan, we made steady progress with revamping and upgrading projects at existing
facilities of petroleum refineries as well as construction work designed to achieveenergy savings. In addition, we made a concerted effort to quickly restore facilities
damaged by the Great East Japan Earthquake.
(Industrial machinery/environment/general chemicals and other)In the Company’s new business fields, we steadily executed construction work on-3-

plants for polycrystalline silicon used in solar cells in Malaysia, as well as theconstruction of manufacturing plants for next-generation batteries and expansion workfor nonferrous metal plants in Japan. With respect to next-generation batteries,
inquiries about projects for related materials were also increasing. In addition, aiming
to benefit from growth in Asia, we stepped up our response to the growing number ofprojects being planned by Japanese companies advancing into Southeast Asia due tothe entrenched strength of the yen. For solar thermal power generation, we enteredinto a cooperation agreement with a leading Italian company that produces solar
receiver tubes, the key components of the next-generation solar thermal power
generation (solar thermodynamic plants operate with molten salt parabolic troughtechnology).
In the pharmaceutical field, the Group steadily executed EPC works for manufacturing
facilities of highly bioactive pharmaceuticals such as anti cancer drugs.
On July 1, 2011, we established the Green Infrastructure Project Division to deal withoverseas infrastructure projects (in the fields of water, transportation, and social
infrastructure business). The Division engaged in a feasibility study of an integrated
waste water reclamation project for a large industrial complex in Saudi Arabia. In
relation to social infrastructure business, we are participating in research in Indonesia
and are bidding for an overseas railway project. In the non-hydrocarbon fields,including railways, we plan to undertake a wide range of activities from project
discovery to the execution of projects jointly with CTCI, a Taiwanese firm with a strong
track record in these fields, based on a capital and business alliance with CTCI.
(Note) See Page10 for more information about segment New Orders, Revenues, andContract Backlog.
(2) Qualitative Information related to Consolidated Earnings Forecasts
Considering the recent historic appreciation of yen, we revised the expected foreignexchange rate from 80 yen/$ to 75 yen/$. However, as we expect that the impact of
this revision on the financial results is limited, we do not at this time intend to revise
the full year earnings forecasts announced on May 12, 2011.

-4-6. Consolidated quarterly financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2011

As of September 30,
2011

33,85531,58956,03338,98996,841

100,841

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivablefrom completed construction contracts
Short-term investment securities
Costs on uncompleted construction
contracts
Jointly controlled assets of joint venture

12,64817,076

88,662

66,343Other

28,15823,343(3)(3)

316,196

278,179

Buildings and structures, net

5,215

4,814

Land

11,938

11,938Other, net

1,867

2,095

Total property, plant and equipment

19,021

18,848

4,733

4,921

Investment securities

8,505

14,739

Other

5,022

5,349

Allowance for doubtful accounts

(87)

(91)

Total investments and other assets

13,441

19,99837,196

43,768353,392

321,948

Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment

Intangible assets
Investments and other assets

Total noncurrent assets
Total assets-5-As of March 31, 2011

(Millions of yen)
As of September 30,2011

Liabilities
Current liabilities
Notes payable, accounts payable forconstruction contracts
Income taxes payable
Advances received on uncompleted
construction contracts
Provision for warranties for completedconstruction
Provision for loss on construction contracts

97,417

71,763

5,986

697

62,571

67,219

1,190

1,062

1,057

1,330

Provision for bonuses

3,944

3,124

Other

9,720

7,056

181,887

152,254

Long-term loans payable

10,208

10,206

Provision

2,940

2,825

Other

2,598

2,474

Total noncurrent liabilities

15,746

15,506

197,633

167,760

Capital stock

43,39643,396

Capital surplus

37,112

37,112Retained earnings

77,832

78,145

Treasury stock(1,295)(1,303)

Total shareholders' equity

157,046

157,351(229)(1,223)

345

(626)

Foreign currency translation adjustment
Total accumulated other comprehensive
incomeMinority interests(1,919)(1,866)(1,804)(3,716)516

553

Total net assets

155,758

154,187

353,392

321,948

Total current liabilities
Noncurrent liabilities

Total liabilities
Net assets
Shareholders' equity

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

Total liabilities and net assets-6-(2) Consolidated quarterly statements of (comprehensive) income(Millions of yen)
Second quarter ended
September 30, 2010
(From April 1, 2010
to September 30, 2010)

Net sales of completed construction contracts
Cost of sales of completed construction
contracts
Gross profit on completed construction
contracts
Selling, general and administrative expenses

Second quarter ended
September 30, 2011
(From April 1, 2011
to September 30, 2011)

111,916

109,551

100,196

96,173

11,71913,378

6,390

6,929

5,329

6,448

Interest income

307411Dividends income

51101

Equity in earnings of affiliates

107

Real estate rent

6756

Other

166

78

Total non-operating income

603

656

126

104

2,692

343

Rent expenses on real estates

48

31

Other

41

77

2,907

556

3,024

6,547

Surrender value of insurance

109－

Total extraordinary income

109－

Loss on valuation of investment securities－250

Loss on adjustment for changes of accounting
standard for asset retirement obligations

146－

Operating income
Non-operating income

Non-operating expenses
Interest expenses
Foreign exchange losses

Total non-operating expenses
Ordinary income
Extraordinary income

Extraordinary loss

Total extraordinary losses
Income before income taxes and minority
interests
Income taxes-current

146

250

2,987

6,297

832

710

Income taxes-deferred(704)2,350

Total income taxes

128

3,060

Income before minority interests

2,859

3,236

Minority interests in income (loss)

(27)

74

2,886

3,162

Net income-7-Consolidated quarterly statements of comprehensive income(Millions of yen)
Second quarter ended
September 30, 2010
(From April 1, 2010
to September 30, 2010)

Second quarter ended
September 30, 2011(From April 1, 2011
to September 30, 2011)

2,859

3,236

Valuation difference on available-for-salesecurities

(452)

(994)

Deferred gains or losses on hedges

257

(971)

Foreign currency translation adjustment

(277)

143

Share of other comprehensive income ofassociates accounted for using equity
method

(73)

(105)

Total other comprehensive income(544)(1,928)

2,314

1,308

2,345

1,249

(31)

59

Income before minority interests
Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of the parent
Comprehensive income attributable tominority interests-8-(3)Consolidated quarterly statements of cash flows(Millions of yen)
Second quarter ended
September 30, 2011
(From April 1, 2011
to September 30, 2011)

Second quarter ended
September 30, 2010
(From April 1, 2010
to September 30, 2010)

Net cash provided by (used in) operating activities
Income before income taxes and minority interests

2,987

6,297

Depreciation and amortization

1,047

1,294

Interest and dividends income
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in costs on uncompleted
construction contracts
Increase (decrease) in notes and accounts
payable-trade
Increase (decrease) in advances received on
uncompleted construction contracts
Decrease (increase) in jointly controlled asset of
joint venture
Other, net

(359)

(513)

2,089

17,109(5,067)(4,425)(5,523)(25,572)(7,906)

4,604

(586)

22,299(1,828)(1,263)(15,148)

19,830

133

214

(125)

(105)

Income taxes paid

(4,734)(6,350)Net cash provided by (used in) operating activities(19,873)

13,589Net decrease (increase) in time deposits

(29)

(193)

Purchase of property, plant and equipment

(653)

(945)

Purchase of intangible assets

(373)

(514)

Purchase of investment securities－(7,559)Purchase of investments in subsidiaries

－

(57)

Other, net

419(1,052)(9,251)

Proceeds from long-term loans payable

162－

Repayment of long-term loans payable

(4)

－

(904)

(2,842)

Cash dividends paid to minority shareholders

(9)

(7)

Other, net

(20)

(15)

Net cash provided by (used in) financing activities(776)(2,865)(359)

66(22,061)

1,539

Cash and cash equivalents at beginning of period

139,790

130,618

Cash and cash equivalents at end of period

117,728

132,157

SubtotalInterest and dividends income received
Interest expenses paid

Net cash provided by (used in) investing activities

Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities

Cash dividends paid

Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash
equivalents-9-7.

Production, Contracts and Sales(Millions of yen)
2Q FY2011
Apr. 1, 2011 —Sept. 30, 2011
RevenuesAmt%

New contracts
Amt%

Backlog of contracts
Amt%

Business Segment
Engineering
LNG plants
Gas and power utilities
Gas chemicals
Petroleum andpetrochemicals
General chemicals
Industrial machinery
Environment and otherTotal Engineering

10,73635,942
66

12.3
41.0
0.1

46,093
16,340
-

42.1
14.9
-

177,592
140,384
66

39.0
30.8
0.0

13,97820,339869
2,057
83,989

15.9
23.2
1.0
2.3
95.8

17,337
15,371
7,773
3,678
106,594

15.8
14.0
7.1
3.4
97.3

35,24374,702
1,239
23,659452,889

7.8
16.4
0.3
5.2
99.5

Other

3,660

4.2

2,956

2.7

2,355

0.5

Domestic
Overseas
Total

63,88023,76987,649

72.9
27.1
100.0

40,78068,771
109,551

37.2
62.8
100.0

171,561
283,684455,245

37.7
62.3
100.0

(Millions of yen)
2Q FY2010
Apr. 1, 2010 —Sept. 30, 2010
New contracts
Amt
Business Segment
Engineering
LNG plants
Gas and power utilities
Gas chemicals
Petroleum andpetrochemicals
General chemicals
Industrial machinery
Environment and otherTotal Engineering
Other
Domestic
Overseas
Total

Revenue%Amt

Backlog of contracts%

Amt%

13,69136,726
107

11.0
29.5
0.1

34,787
21,052
54

31.1
18.8
0.1

253,897
138,232
637

48.5
26.4
0.1

24,48334,767
8,695
2,843
121,316

19.7
28.0
7.0
2.3
97.6

31,231
8,105
11,9891,835
109,056

27.9
7.2
10.7
1.6
97.4

46,62642,42018,557
22,629522,999

8.9
8.1
3.6
4.3
99.9

2,966

2.4

2,859

2.6

553

0.1

69,23155,051
124,283

55.7
44.3
100.0

61,02450,892111,916

54.5
45.5
100.0

176,972
346,580
523,55333.8
66.2100.0

Note: The backlog of contracts for the six months ended September 30, 2011 includes a decrease due tochanges in construction contracts acquired in prior fiscal years, an increase due to adjustments in
new contract amounts, and an increase due to foreign exchange translation adjustments.

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