Financial Results for FY2018
The Fiscal Year Ended March 31, 2019

May 9, 2019

Chiyoda Corporation© Chiyoda Corporation 2019, All Rights Reserved.

Index
1. Key Points
2. Review of Risks & Construction Losses
3. Financial Summary
4. Income-related Items
5. New Orders
6. Backlog
7. Revenue
8. Balance Sheet
9. Outline of measures to enhance financial strength
10. Outline of Class A Preferred Shares
11. Preferred Shares by Third- Party Allotment to Mitsubishi
12. Outline of Borrowing
13. Forecast Breakdown FY2019
14. Status of Ongoing Major Projects

23456789101112131415

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1. Key points
 Stringent review of risks and construction losses Positive market environment; New Orders as anticipated Established measurements to enhance financial strength Chiyoda’s Revitalization Plan:
Initiatives for revitalization and the future

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2. Review Loss & Risk RevisionStrict reassessment of risk by Strategy & Risk Integration Division
including newly employed external personnel

Large Scale LNG Projects: Cameron and TangguhCameron LNG: Additional costs recognized after reassessment of risks
related to lower productivity of U.S. labor and unexpected cost born in thefinal construction phase of Train 1

Tangguh LNG: Project schedule is being impacted by several factors, andrequires significant amount of additional works and costs to complete theprojectArbitration and Pending ProjectsPossible risks reassessedOthers

Possible risks in Domestic and Overseas small and mid size projects
reassessed
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3. Financial Summary(Billions of Yen)

18/3
4Q

19/3
4Q

Difference

Difference(%)

Full Year
Forecast*2

Progress(%)

800.0

96%

New Orders

301.2

771.6

470.3

156%

Backlog ofContracts

653.5

1,016.4

362.9

56%

Revenues

510.9

342.0

(169.0)

(33%)

400.0

86%

Operating Income(12.3)(199.8)(187.5)－(86.5)－

Ordinary Income(10.1)(193.0)(182.9)－(86.5)－Profit (Loss)*1

6.4(214.9)(221.3)－(105.0)－Assumption

Exchange Rate

106 JPY/$

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*1 Profit (Loss) attributable to owners of parent*2 As revised on October 31,201844. Income-related Items(Billions of Yen)

18/3 4Q

19/3 4Q

Difference

Full Year
Forecast*1

Revenue

510.9

342.0

(169.0)400.0

Gross Profit

8.6(181.1)(189.8)(68.0)

SG&A expenses(20.9)(18.6)

2.3(18.5)

Operating Income(12.3)(199.8)(187.5)(86.5)

2.2

6.8

4.60

(10.1)(193.0)(182.9)(86.5)

Extraordinary income (loss),
Income taxes, others*2

16.5(21.9)(38.5)(18.5)

Profit attributable to owners ofparent

6.4(214.9)(221.3)(105.0)Non-operating income andexpenses
Ordinary Income*1= As revised on October 31, 2018
*2= Profit (Loss) to attribute to non-controlling interests

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55. New Orders
By Region(Billions of Yen)

By Field
771.6

800

771.6

800

600

600

55%

66%

400

28%

200

50%

0400

301.2
301

18/3 4Q

SEA & Oceania
Americas
Overseas Total
Domestic Total

019/3 4Q

15.5
27.6
510.5
21.5
575.0
196.5

EnvironmentOthers

20.5
83.1
30.7
15.2
149.5
151.7

42%29%

26%

EnergyME & Africa

200

301.2
301

LNG Plant, Gas
Related Work29%

18/3 4Q

13%

19/3 4Q

125.9

421.4

Refinery,Petrochemical, Metal

52.6

227.1

Pharmaceutical,
Biochemistry, Chemical

35.1

22.0

Environment, New
Energy, Infrastructure

87.6

101.1

Major New Orders
Overseas
Domestic

Over 100 billions of Yen
Ethylene (U.S.A)
Golden Pass LNG

Over 50 billion of Yen

Over 1 billions of Yen
Change Order Yamal LNG
Biomass, Energy Storage System
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66. Backlog
By Region(Billions of Yen)

By Field1,200

1,200

1,016.4
19%

800

800

653.5
37%

58%

20%

25%

18/3 4Q

31%
24%

SEA & Oceania
Americas
Overseas Total
Domestic Total

Major New Orders

Over 100 billions of Yen
Ethylene (U.S.A)
Golden Pass LNG

019/3 4Q

19.4
191.5
587.9
0.1
798.8
217.5

Environment

Others

19.2
242.3
131.0
97.8
490.3
163.2

22%

EnergyME & Africa

Domestic

55%

55%

15%

Overseas

653.5

400

400

0

1,016.4

16%

18/3 4Q

12%

19/3 4Q

LNG Plant, Gas
Related Work

356.6

557.5

Refinery,Petrochemical, Metal

155.0311.1

Biochemistry, Chemical

36.1

24.0

Environment, New
Energy, Infrastructure

105.8

123.8

Pharmaceutical,

Over 50 billion of Yen

Over 10 billions of Yen

Cameron LNG, Tangghu LNG

Freeport LNG, Ichthys LNG
Biomass, Energy Storage System, Mega Solar
Petrochemical Project
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7. Revenues
By Region

By Field
600

400

600

510.9
511
33%

22%

200

(Billions of Yen)

21%

342.0
350

510.9

400

342.0
73%

15%
12%

56%

200

34%

10%

21%

0

SEA & Oceania
Americas
Overseas Total
Domestic Total

19/3 4Q

15.253.7
35.5
117.2
221.6
120.4

Environment

Others

14.5
169.3
112.3
105.0
401.1
109.80

EnergyME & Africa

18/3 4Q

34%

LNG Plant, Gas
Related Work10%

18/3 4Q

17%
18%

19/3 3Q

372.8

191.6

Refinery,Petrochemical, Metal

52.7

60.2

Pharmaceutical,
Biochemistry, Chemical

33.7

28.8

Environment, New
Energy, Infrastructure

51.7

61.4

Major Revenues
Over 100 billions of Yen
Overseas

Yamal LNG

Over 50 billion of Yen

Over 10 billions of Yen
Ichthys LNG,, Freeport LNG, Ethylene (USA),
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88. Balance Sheet(Billions of Yen)
March 31, March 31,Difference
2018
2019

March 31, March 31,Difference
2018
2019

Current assets

374.5

326.9

(47.5)

Current liabilities

247.8

392.5

144.7

Cash and deposits*1

104.0

69.5

(34.6)

Operating liabilities *4

223.9

297.5

73.6

Operating assets *2

92.8

76.1

(16.7)

Provision for loss on
construction contracts

3.3

67.6

64.3

Accounts receivable - other

42.4

65.9

23.5

Others

20.6

27.2

6.6

Jointly controlled assets ofjoint venture *3

131.4

111.0

(20.4)

Non-current liabilities13.1

19.0

5.9

3.9

4.4

0.5

Long-term loans payable

10.0

15.9

5.9

Non-current assets

45.9

25.4

(20.5)

3.1

3.1

0.0

Property, plant & equipment

12.1

11.7

(0.4)

Net Assets

159.4(59.2)(218.6)

5.7

5.3

(0.4)

Capital Stock156.1(60.9)(217.0)28.1

8.4(19.7)

Others

3.3

1.7

(1.6)

420.3

352.3

(68.0)

Liabilities and net assets

420.3(352.3)(68.0)

Shareholders’ equity

157.6(60.1)(217.7)

Shareholders’ equity ratio

37.5% (17.1)% (54.5)pt

OtherIntangible assets
Investment and other assets
Total assets*1. Cash and deposits = Cash and deposits + Short-term investment
securities, incl. negotiable deposit*2. Operating assets = Notes receivable, accounts receivable from completed
construction contracts + Costs on uncompleted construction contracts*3. Jointly controlled assets of joint venture = Cash and deposits of jointventure proportional to Chiyoda’s interest*4. Operating liabilities = Notes payable, accounts payable for construction
contracts + Advances received on uncompleted construction contracts

Others

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99. Outline of measures to enhance financial strength
Financing of JPY180bn for the execution of the revitalization
plan①Mitsubishi Corporation②MUFG Bank

：Preferred shares, long-term loan
：Subordinated loan

Long-term
loan
JPY90bn

Liabilities
exceedingassets
JPY59.2bn

Procure funds necessary
Subordinated for continued operation andimprovement of earning
loan
structure, while minimizing
JPY20bn
the dilution of existing
sharesPreferredshares
JPY70bn

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1010. Outline of Class A Preferred Shares Financing Plan: Preferred Shares Allotment
Dividend Priority : 1st Class A Preferred Shares, 2nd Common SharesVoting Rights: None

Options: Put option by Mitsubishi / Call option by Chiyoda

Conversion Right by Mitsubishi to Common Shares→ no present intention to exercise conversion rights→ If the conversion right for all Preferred Shares will be exercised
Mitsubishi’s voting power will exceed 80%

Reference onlyImages after conversion of all Preferred Shares
MC33％

BeforeOthers
67％

Common Shares become diluted to ~¼After

Mitsubishi Corporation(Conversion to Common Shares)

Mitsubishi(Existing)

OthersMore than 80%
Mitsubishi, MC = Mitsubishi Corporation

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1111. Third-party allotment of preferred shares to Mitsubishi
Class A preferred shares
1

Number of shares offered forsubscription

175,000,000

2Total amount to be paid in

JPY70bn (JPY400 per share)

3

Payment date

Expected July 1st, 2019 (*)

4

Dividends from surplus

Fixed rate, 3% over the holding period

5

Voting rights

None6

Conversion right into commonshares

Can be exercised after July 1, 2019
Conversion price：JPY100, no revision of conversion price7

Put option by Mitsubishi
Corporation (cash consideration)

Can be exercised after July 1, 2021

8Call option by Chiyoda (cashconsideration)

Can be exercised after July 1, 2021

Redemption price for the above 7
and 8

Higher of the below:①Share price at the exercise timing of options②Total amount paid in + equivalent of Class A payable
dividends

9(*) Subject to the approval from shareholders through a special resolution at the annual general
meeting on June 25th, 2019 and fulfillment of other requirements
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1212. Outline of Borrowing
1. Borrowing from Mitsubishi CorporationOutline
1

Amount of Borrowing①30 billion yen

2Interest Rate

①Agreed on the terms applicable until July 2019;
Terms after July 2019 are under discussion②1.50%

3

Borrowing Period①Five years②Five years

4

Collateral①Applicable②Not applicable

5

Subordination①Not applicable②Not applicable②60 billion yen

2. Subordinated Loan from MUFG BankOutline
1

Amount of Borrowing

20 billion yen

2Interest Rate

2.50 %

3

Borrowing Period

Five years

4

Collateral

Not applicable

5

SubordinationApplicable
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1313. Forecast Breakdown FY 2019
(Billions of Yen)

Results
FY 2018

Forecasts
FY 2019

Difference

New Orders

771.6

550.0

△221.6

Overseas

575.0

430.0

△145.0

Domestic

196.5

120.0

△76.5

Revenues

342.0

390.0

48.0

Overseas

221.6

250.0

28.4

Domestic

120.4

140.0

19.6

Gross Profit△181.1

29.0

210.1

SG&A Expenses

△18.6

△17.0

1.6

Operating Income△199.8

12.0

211.8

6.8

0

△6.8

△193.0

12.0

205.0

△21.9

△6.0

15.9

△214.96.0

220.9

Non-operating Income and ExpensesOrdinary Income
Extraordinary income, Income taxes, Profit
attributable to non-controlling interests
Profit attributable to owners of parent

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14. Status of Ongoing Major Projects
Project

Freeport LNG

Cameron LNG

Tangguh LNG

ClientFreeport LNG

Cameron LNG LLC

BP Berau

~93%

~55%

Completion
Rate

~97%
(Tr.1,2)~91%(Tr.3)• Collaborate with highquality andexperienced vendor/
subcontractor• About 7,800 worker areStatusat the site.
• Implementation of• Focus on smooth(as ofnecessary• Negotiation with theexecution in finalMarch 2019)
countermeasures toclient is ongoing.
construction phase.
secure labors at aremote location• About 7,000
workers areengaged at theconstruction site.

• Train-1 Feed-Gas-inachieved.

• Negotiation with theclient is ongoing
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Forward-Looking Statements
Any projections included in these materials are based solely on information available at the time this presentation
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.

Please address inquiries to:
IR, PR & CSR Department
TEL +81-45-225-7734
URL https://www.chiyodacorp.com/en/© Chiyoda Corporation 2019, All Rights Reserved.