May 13, 2009
Chiyoda Corporation

The Medium-Term Management Plan“Engineering Excellence, Value Creation”
1. Basic Management Policies

Corporate Philosophy
Enhance our business in aiming for harmony between energy and the environmentand contribute to the sustainable development of a society as an integrated
engineering company through the use of our collective wisdom and painstakingly
developed technology.

Every Chiyoda Group employee engages in our corporate activities with thisphilosophy in mind as we strive for corporate group management that earns the trustand empathy of all of our stakeholders, including shareholders, customers, business
partners, employees and local communities.

Management Vision
Under the previous Medium-Term Management Plan “DSP 2008”, althoughestablishment of chronically sound financial position has been accomplished to thetarget level of equity ratio, while this is regrettable, operating income has been
declined not to reach the plan target. Having considered the results of DSP2008 andin order to achieve continuous growth into the future and growing the corporate value,
we formulated a new medium-term management plan, “Engineering Excellence,Value Creation” (“the medium-term plan”) commencing in fiscal year 2009 (ending on
2010 March 31), and runs through fiscal year 2012 (ending on 2013 March 31).

1Having considered on the progress of the DSP 2008, the medium-term plan aims thesustainable and stable earnings growth with Chiyoda Group’s EPC core competence
through further reinforcement of its business fundamentals by way of its steadily
increased capital strength.

In our business field, i.e., Energy, Resource Development, and Environment, we are
to exercise our top quality of services by way of following underling three concept
aiming at such sustainable and stable growth whereby it contributes to customers andsociety(1) Technology Challenge
The Chiyoda Group is constantly focused on the leading-edge techinologies for in
depth research and development and further its applications. We are always
engaging on technological challenges such as renewable energy field, those required
for strengthen our project execution capabilities to cope with tighter environmental
restrictions under harsh conditions such as extremely cold weather, offshore locations,etc.

(2) Optimum Solutions
We will provide environmentally responsible, optimum solutions to meet the needs ofcustomers and society. From feasibility studies (FS) to decommissioning of plants, wewill provide these optimum solutions from various angles, ranging from EPC totechnology consulting services.

(3) Global Diversification
In addition to diversifying our business regions purporting to manage various risks,
we will strengthen and diversify our global network through business and/or capitalalliances (M&As) and other measures. Furthermore, by enhancing global operational
efficiency with the expansion of Global Engineering Satellites (GES) responsibilities,
our cost competitiveness will be strengthen.
22. Medium-Term Management Strategies

The international financial turmoil that originated with the sub-prime loan problem in
the United States is now affecting every country in the world. The real economy isseriously deteriorating, and the Chiyoda Group believes that we have entered a timeof upheaval that only manifests once in a century. A significant paradigm shift will
drive the process of recovery that follows it. We expect that global competition will beeven more severe than it is now. Despite the rapid worsening of the project bidding
environment in Japan and overseas, the Chiyoda Group’s management is moving
forward based on the fundamental recognition that the Chiyoda Group’s corecompetence is its sophisticated project execution capabilities backed by leading-edge
technologies. In the medium-term plan aimed at the next significant step forward, wemust make necessary moves in areas such as strategic business alliances, mergers
andacquisitions,andinvest

intechnology

researchanddevelopment,enhancement of global network, human resources and information technology
infrastructure. At the same time, we will establish a solid management foundation forfuture growth. Accordingly, we will promote the following management strategies.

Management Strategies(1) Further strengthen core businesses(2) Build a balanced portfolio for steady growth(3) Further strengthen unified group operations(1) Further Strengthen Core Businesses•While maintaining leading position in the LNG and gas plant business (thegas value chain), the Chiyoda Group will respond to the increasing number ofprojects to be executed under harsh environmental conditions. We will
establish standardized designs and modular construction methods and also
take steps to form business alliances to pursue floating LNG business, etc.

3•Through business alliances, mergers and acquisitions with domestic andoverseas companies, the Chiyoda Group will expand its business with the aimof securing manpower and accommodating various forms of contract
configurations including cost-reimbursable contracts.

•Development of new markets in Asia, Oceania and in South America will beproceeded in close cooperation with Mitsubishi Corporation.

•The Chiyoda Group will further strengthen its focus on safety-andenvironment-first policy in plant design and construction.

(2) Build a Balanced Portfolio for Steady Growth•

The Chiyoda Group will strengthen efforts to target on refinery, petrochemical,
synthesis gas and other projects in which it can differentiate itself on the basisof technology and execution scheme. In the refinery sector, we will focus on
heavy oil cracking technology and large export oil refineries. In the synthesis
gas sector, we participated in the Nippon GTL Technology Research
Association to demonstrate a gas-to-liquids (GTL) process and continue
working to commercialize it.

•For the environment business segment, while expanding into the renewableenergy field such as projects for solar and battery power, we will cooperate
closely with customers in EPC and non-EPC projects related to carbon
management such as CCS (Carbon Capture and Storage) to promote alow-carbon society.

•In expanding the business domain into non-EPC businesses, the Chiyoda
Group will provide a variety of services including conceptual design and FS
for energy-saving and facility upgrading, as well as business development fortechnology consulting in the field of integration of utilities, water form the view4to energy conservation and coal and heavy oil gasification.

(3) Further Strengthen Unified Group Operation•The Chiyoda Group will establish the locally centered business development
and project execution focal point. We had already made progress byestablishing a support organization within head office for subsidiaries inSingapore and Qatar together with reviewing expanding plan for Saudi Arabia
operation. Those subsidiaries will undertake small and medium-scale EPC
and expand their capabilities to provide post-completion services including
asset management services such as plant diagnosis.

•The Chiyoda Group will promote global operational efficiency for costcompetitiveness where GES and other Group companies’ capabilities as
support design divisions in head office is to expand to assume more activeroles in global project execution. Such expanding business functions in theGroup companies aim to improve our global project execution capabilities.

•Business development in new regions such as North America, CentralAmerica, South America, Africa and the Commonwealth of Independent
States will be promoted. Recognizing the importance of stable operations, wewill diversify our regional portfolio through means including collaboration withother companies, as well as capital and business alliances.

•With the distinct corporate responsibilities of each group companies, theChiyoda Group will strive to more strongly promote unified group operations
in order to expand business in areas such as operation and maintenance(O&M), plant lifecycle engineering (PLE), pharmaceuticals and inorganic
chemistry.

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3. Earnings Target

The earnings target on a consolidated basis for the final year of the medium-term plan,fiscal year 2012, is net income of ¥23 billion. To achieve this target, we assume
revenues of ¥550 billion, operating income of ¥34 billion and ordinary income of ¥38billion. Because of the current turmoil operating environment which makes forecasts
difficult, we have only set for the earnings target on the final year of the plan while
disclosing annual plans at the beginning of each fiscal year.

Reference: Performance Assumption(Billions of yen)
Consolidated

Fiscal 2009

Fiscal 2012

Revenues

320.0550

Operating income

7.534

Ordinary income

9.038

Net income

5.023

4. Dividend and Investment Policy

While working to continuously develop our businesses, we will strive to build up ourfinancial strength. At the same time, we will try to distribute stable dividends linkedwith performance.

We forecast cash dividends of ¥6.00 per share for fiscal 2009 and our dividend policy
is to maintain a consolidated payout ratio of 30%.
With respect to investment, we will (1) make strategic investments for growth, (2)invest in information technology, office and other infrastructure to strengthen ourmanagement foundation, and (3) invest in technology research and development.
However, considering the current severe operating environment, we will prioritize6

prudent cash management and smoothly and flexibly allocate capital in line with thestatus of progress of the medium-term plan and changes in the businessenvironment.

We will also work to energize our human resources and organization. In working
toward the targets of the medium-term plan, we will create a highly energetic
corporate culture in which every member can work well and find satisfaction in doing
so, while continuing to implement corporate social responsibility (CSR) measures
including environmental protection, compliance and risk management.

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