Business Overview
at the Second Quarter ofFY2011/3
Takashi Kubota
President and CEO
November 11, 2010

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Table of Contents
1. Business Overview
2. Business Environment Forecast
3. New Orders
4. Management Strategies

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1. Business Overview (1) Steady execution of Qatari projects¾ Qatargas/ LNG Trains 6 & 7: Completed¾ Shell/ Pearl GTL Gas Processing Plant Smooth execution of other overseas
projects¾ Papua New Guinea/ ExxonMobil/ LNG Plant¾ Saudi Arabia/ Aramco/ Heavy Oil Cracking Unit
¾ FEED works: Barzan Gas Processing Plant,Ichthys LNG Plant, Petrobras FLNG etc.
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1. Business Overview (2) Executing domestic projects in extensivesectors¾ Taiyo Oil/ RFCC (Resid Fluid Catalytic Cracking) Unit:
Completed¾ JX Nippon Oil & Energy/ HS-FCC Semi- Commercial
Plant (for FY2010)¾ LNG Receiving Terminals (3 projects)¾ Pharmaceutical Plants¾ New Energy Related Facilities

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2. Business Environment Forecast
 LNG Supply- Demand Outlook
Shift of energy demand to natural gas andGrowth of low-carbon society related industries
Customer investment trends
Intensive competition with Korean contractors, inaddition to European and US rivals

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2. Business Environment Forecast (1)LNG Supply-Demand Outlook¾ Currently, oversupply conditions by start up of large-scale LNG plants¾ Also vigorous development of unconventional gas, mainly in the US¾ Over the long-term, LNG demand will climb because of economic growthin Asian countries such as China and India.
400

MMtpa

350
300
250

Capacity under Construction

200

Existing Capacity
Demand Range

1501002010

2012

2014

2016

2018

2020

Source: Prepared by Chiyoda from various data

5All Rights Reserved. CHIYODA 2010 Major Potential LNG Projects
Yamal

Shtokman

Sakhalin T3

Damietta T2
Idku T3

KitimatMarsa el Brega revamp
Vladivostok
Arzew

Das Island

Delta Caribe

FLNG

Liquid Niugini Gas
7＋BrassOK

Cameroon

Dongi Senoro

Angola T2
Pluto2・3
GLNG
Ichthys
QL Curtis
BrowseAustralia Pacific
ScarboroughArrow Energy
Wheatstone
Darwin2Source: Prepared by Chiyoda from various data

MaselaGreater Sunrise
Petrobras etc.

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2. Business Environment Forecast (2) Shift of energy demand to natural gas
LNG demand will exhibit rising trend in the future.

 Growth of low-carbon society relatedindustries
Investment in facilities related to photovoltaic, solar thermal
power generation and electric vehicles is also following a positive
trend.
¾Photovoltaic power generation: Photovoltaic cells,
polycrystalline silicon¾Electric vehicles: Lithium-ion batteries, battery components

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2. Business Environment Forecast (3)Customer investment trends

IOC: Investment in upstream projects requiring
distinctive technological expertise
NOC: Vigorous gas and oil related investment by eachcountry
Japanese firms:
Expanding push into overseas growing markets inpetroleum/ petrochemicals
Increasing domestic and overseas investment in
new energy sectors

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2. Business Environment Forecast (4) Intensive competition with Korean
contractors, in addition to Europeanand US rivals
Korean firms increased their new contracts in 2008,2009 and again in 2010.
Ö Respond with various actions including technologybased differentiation, partnering and strengthening
competitiveness by making the most of Global
Engineering Satellites*.
* Local design subsidiaries in the Philippines and India

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3. New Orders (1) Major new orders in 2Q¾ Malaysia/ Tokuyama/ Polycrystalline Silicon Plant¾ Japan/ LNG Receiving Terminal¾ Japan/J-Power/ CO2 Physical Absorption Unit
¾ Lithium Ion Battery Related Project¾ Qatar/ Qatargas, RasGas/ Helium Plants (awardedto CAEL)¾ Singapore/ Stolthaven Singapore/ Chemical Tank
Terminal (awarded to CSL)

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3. New Orders (2) Targeted projects
2nd Half of 2011/3¾ Qatar/ Barzan Gas Processing Plant¾ Refineries

2012/3 ~¾ LNG projects in Australia etc.
¾ Brazil/ Petrobras/ FLNG
¾ Other projects in new regions etc.

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4. Management Strategies (1) Further Strengthen Core Business (LNG)
Progress¾ Steady execution of Papua New Guinea LNG
project¾ Execution of FLNG FEED work for Petrobras,
BrazilWay Forward¾ Securing coming EPC contracts¾ Targeting new FEED works for LNG projects inAustralia etc.
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4. Management Strategies (2)Build a Balanced Portfolio
Exploration of new business area such as new energy,etc.
Progress
Tokuyama/ Polycrystalline Silicon Plant EPC: Awarded
Way Forward¾ Integrate and reinforce engagement to new business area
through newly established Technology Development Business
Operation Division:
photovoltaic/ solar thermal power generation, polycrystalline
silicon, lithium ion battery, CO2 separation and recovery, nonferrous metal, infrastructure, etc.
¾ Development of overseas Operation & Maintenance business

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4. Management Strategies (3)Strengthen Unified Group Operation
Progress
Expanded human resource, obtained new contract for small/mediumsized local projects
Ö

CAEL (Qatar), CSL (Singapore)

Way Forward
i. Further expand new contract award for small/mediumsized local projectsÖCAEL, CSL, CPL (Saudi Arabia)

ii. Further strengthen Global Engineering Satellites
Ö

CPh (The Philippines), LTC (India)

Strengthen unified group operation through newly established GroupOperation Division

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Strategies

Implementationmeasures

Further strengthencore businesses

M&A

Build a balanced
portfolio

Business alliances

Global operations

Strengthen unified
group operation

Resource management

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Implementation Measures¾M&A¾Businessalliances･Companies with technologies in newsectors･EPC companies with competitiveness･Reinforcement of EPC function of
Global Engineering Satellites¾Global operations･Investment on IT infrastructure･Enhancement of data management¾Resourcemanagement･Expansion and develop of humanresources･Establishment of operating bases/
integration of offices

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Please address inquiries to;

IR and Public Relations OfficeTEL
FAX+81-45-506-7538+81-45-506-7085

URL https://ssl.chiyoda-corp.com/contact/index.php

Forward-looking Statements
The forecasts and plans in this presentation are based on information available to management on
November 11, 2010, the date these materials were prepared. Actual results may differ significantly
from these forecasts for a number of factors, including but not limited to changes in economic
conditions and operation environment in Japan and overseas.

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