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.
This document is a translation/summary
for reference only.

12 November 2019
IR, PR & CSR Department
Chiyoda Corporation

Briefing Summary of theFinancial Results for the Second Quarter of Fiscal Year Ending 31 March 2020
Chiyoda Corporation (“Chiyoda”, TSE:6366; ISIN: JP3528600004) released the financial results
for the 2nd quarter of Fiscal Year ending 31 March 2020, on 5 November 2019. The following isa summary of a presentation held on 6 November 2019.

I. Financial Results
Referring to “Presentation Material for 2Q, FY2019”(Website: Investors > Earnings Release)
II. Chiyoda’s Revitalization Plan Six month Progress Update
Referring to “Chiyoda’s Revitalization Plan - Six Month Progress Update”(Website: Investors > Earnings Release)

I. Financial Results
1. Highlights
 Secured steady profits from solidly executing ongoing projects. Revenue was 174.9 billion
yen, which is steady progress representing approximately 45% of the full-year forecast.
Operating income was 14.1 billion yen. At 4.8 billion yen, profit was approximately 80%of the full-year forecast.
 As announced on 1 November 2019, the full-year operating income forecast was revised
from 12.0 billion yen to 19.0 billion yen. Profit items below ordinary income remainunchanged from the full-year forecast. Foreign exchange losses were experienced on
foreign currency-denominated trade receivables due to yen appreciation, resulting in nonoperating income and expenses of 7.2 billion yen and conservative estimates of possible
changes in profit and loss of ongoing projects and in the business environment from thethird quarter onward.

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

2. Financial Summary
 New Orders amounted to 79.9 billion yen. Preparing to bid for large scale projects in the
fourth quarter. The order backlog was 904.5 billion yen.
 Revenue and profit are described in “1. Highlights”.
3. New Orders(Description omitted)
4. Backlog(Description omitted)
5. Income-related Items
 Gross profit was 22.0 billion yen. Gross profit ratio was 12.6%, exceeding the full-year
forecast of 7.4% due to revisions to contract terms on Cameron LNG and Tangguh LNG.
The full-year forecast for gross profit has been revised upward from 29.0 billion yen to 36.0
billion yen. Compared to the revised full-year gross profit forecast of 36.0 billion yen, thesecond quarter results of 22.0 billion yen are approximately 60% progress.
 SG & A expenses was 8 billion yen, less than 50% of the full-year forecast. Compared tothe same period last year, it was down approximately 0.9 billion yen.
 Non-operating income and expenses was -7.2 billion yen. The main reason is the foreignexchange loss on foreign currency trade receivables due to the strong yen. In the second
quarter, capitalization of loans to a subsidiary in the US and partial hedging by forward
exchange contracts were promoted and foreign exchange losses after the third quarter could
be suppressed accordingly.
6. Profit Analysis
 Gross profit of 22.0 billion yen consists of 13.0 billion yen in the first quarter (energy area:
10.7 billion yen, global environment area: 2.3 billion yen) and 9 billion yen in the secondquarter (energy area: 7.4 billion yen, global environment area: 1.6 billion yen).
 SG & A expenses were 4 billion yen in both the first and second quarters. Compared to thesame period last year, it was -0.2 billion yen and -0.7 billion yen respectively.
 The main part of non-operating income and extraordinary income was foreign exchange
losses. After deducting income taxes, profit was 2.3 billion yen in the first quarter and 2.5
billion yen in the second quarter for a cumulative total of 4.8 billion yen.
7. Revenues(Description omitted)
8. Balance Sheet Mitsubishi Corporation and Mitsubishi UFJ Bank's financing package announced on 9 May
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Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

2019 is 180 billion yen, consisting of 70 billion yen in third-party allotment of Mitsubishi
Corporation, 90 billion yen in credit line and 20 billion yen in subordinated loan from
Mitsubishi UFJ Bank.
Shareholder’s Equity increased by 79.1 billion yen from -60.1 billion yen at the end ofMarch 2019 to 19.0 billion yen at the end of September 2019. The main reason was thethird-party allotment of Mitsubishi Corporation of 70 billion yen implemented in July 2019.

Long-term debt (Non-current liabilities) increased by 19.9 billion from 15.9 billion yen at
the end of March 2019 to 35.8 billion yen at the end of September 2019, due to executing asubordinated loan of 20 billion yen from MUFG Bank.

Mitsubishi Corporation's loan facility of 90 billion yen is unused as of the end of September
2019 and is reserved for future funding.

9. Full-year Forecast As stated above, gross profit and operating income are revised upward.

II. Chiyoda’s Revitalization Plan Six month Progress Update
1. Overview of Revitalization Plan Initiatives are being promoted in line with the revitalization plan.
 Building the foundation for revitalization:A) Further develop the risk management structureB) Enhance EPC execution and management capabilityC) Reinforce human resources.
 The quantitative target after 5 years:A) Transform to a company that generates stable net profits of 10-20 billion yen per yearB) Shareholder’s equity ratio has recovered to over 20%.
 Long-term vision:
Aiming to be an engineering company that creates the future of energy and the globalenvironment.
2. Strengthening the Financial Base
 Shareholder’s equity stood at 19.0 billion yen due to the implementation of third-party
allotment by Mitsubishi Corporation of 70 billion yen, accumulated gross profit exceeding
the full-year forecast and reduced SG & A expenses.

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

Shareholder’s equity will improve by accumulating steady profits through the solid
execution of on-going projects, aiming to realize a recovery of 20% or more in theshareholder’s equity ratio early.

3. Enhancing EPC Execution and Management Capacity
 “CCMO (Chief Construction Management Officer)” was appointed to unify theresponsibilities and authority distributed to each department within the company and thepromotion system was strengthened.
 The following initiatives are being promoted.
A) “Chiyoda AWP”: Advanced Work Packaging (AWP) is a new construction
management method advocated in the USA. Chiyoda AWP has been developed byintegrating Chiyoda’s expertise and knowledge in planning and managing plant design
and procurement to completion and delivery.
B) Construction IoT: Efficient material management using RFID (RadioFrequent Identifier). Improved labor and safety management utilizing a beacon.
C) “Target 20”: Promoting company-wide digitalization. Aims to improve work
productivity of EPC/Corporate Management department by 20%.
4. Digital Transformation
 “Digital Transformation Division” was established in July 2019.
 Vision:A) In-house digitalization: to implement a revitalization plan making the most of digitaltechnology.
B) To further promote digital transformation business.
5. The “New Values” Engineering Challenge The “Frontier Business Division” was established in October 2019.
 Aim: Redefining the value of our engineering and transform our business portfolio.
 Vision: Solving problems in the environment/energy, social/business succession and lifescience.
6. Ongoing Major Projects
 Freeport LNG:
Progress rates of completion (as of the end of September 2019), Train1 and Train-2: approximately 99%, Train-3: approximately 96%. Train-1 commenced LNG
production in August and export in September. Train-2: production will commence in4Q/2019. Train-3: production will commence in 1Q/2020.
 Cameron LNG:
Progress rate of completion is approximately 96% for all three trains.
Train-1: commercial operation has commenced. Train-2: production will commence in
4Q/2020, Train-3: production will commence in 2Q/2020.
 Tangguh LNG:
Progress rate of completion is approximately 65%. Target completionis 3Q/2021.
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Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

Texas Ethylene:
Progress rate of completion is approximately 40%. Target completionis 4Q/2021. Adopting a module construction method minimizing local construction in theUSA. Module production in China yard is progressing.
Golden Pass LNG: Progress rate of completion is approximately 4%. Design work isongoing.
--End—Please address inquiries to: IR, PR & CSR Department: Tel +81-45-225-7734
Note: Some additions and corrections were made to make the content easier for readers to understand.
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. Investor are recommended not to depend
solely on these projections for making investment decisions.

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