Translation

August 10, 2015

Consolidated Financial Results
for the Three Months Ended June 30, 2015
Company name: CHIYODA CORPORATION
Listing:First Section of the Tokyo Stock Exchange
Stock code:
6366
URL:
http://www.chiyoda-corp.com/
Representative: Shogo Shibuya, President & CEO
Inquiries:
Nobuo Sekita, SL, Accounting Section
TEL:+81-45-225-7745 (from overseas)
Scheduled date to file Quarterly Report: August 10, 2015
Preparation of Quarterly Supplementary Explanation Material: Yes
Quarterly Financial Results Presentation Held: Yes (for Analysts and Institutional Investors)(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated performance for the three months ended June 30, 2015

(1) Consolidated operating results
Net sales
Millions ofyen(Percentages indicate year-on-year changes)
Net income
attributable toOperating income
Ordinary income
owners of
the Parent
Millions ofMillions ofMillions of
% yen
% yen
% yen%For the three months
125,946 43.6
3,979
250.4
3,512 104.9
ended June 30, 2015
For the three months
87,678 (9.8)
1,135(76.0)
1,714 (68.7)
ended June 30, 2014
Note: Comprehensive Income: the three months ended June 30, 2015: 2,132 million yen / 45.5%
the three months ended June 30, 2014: 1,465 million yen / (46.5)%
Net income per share

For the three months
ended June 30, 2015
For the three months
ended June 30, 2014

2,017 584.6
294 (88.7)

Fully diluted net
income per share

Yen

Yen

7.79

-

1.14-

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

As of June 30, 2015

518,778

207,160

39.6

As of March 31, 2015

515,839

208,405

40.0

Reference: Equity

As of June 30, 2015: 205,195 million yen

As of March 31, 2015: 206,395 million yen

12.

Cash dividends
Cash dividends per share
Record date

First quarter

Second quarter

Third quarter

Fiscal year-end

Yen

Yen

Yen-

13.00

13.00

-

14.00

14.00

Yen
Yen
Fiscal year ended
March 31, 2015
Fiscal year ending
March 31, 2016
Fiscal year ending
March 31, 2016
(Forecast)
Note: Revision to the latest forecast announcement 2015: None

3.

AnnualConsolidated earnings forecasts for the fiscal year ending March 31, 2016 (fromApril 1, 2015 to March 31, 2016)(Percentages indicate year-on-year changes.)
Net income
attributable toNet income perNet sales
Operating income Ordinary income
shareowners of
the Parent
Millions ofMillions ofMillions ofMillions ofyenyen
yen
yen%%%%
Yen

Fiscal year ending
March 31, 2016

600,000

24.7

20,000(6.8)

22,000(1.2)

12,0008.8

46.33

Note: Revision to the latest forecast announcement 2015: 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 FinancialStatements: None
(3) Changes in Accounting Policies and Accounting Estimates / Restatements
a. Changes in accounting policies due to revisions of accounting standards, etc.: Yes
b. 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 June 30, 2015
260,324,529 shares
As of March 31, 2015
260,324,529 sharesb. Number of treasury stock at the end of the period
As of June 30, 2015
1,327,772 shares
As of March 31, 2015
1,323,232 sharesc. Average number of shares during the period
For the three months ended June 30, 2015
258,998,485 shares
For the three months ended June 30, 2014
259,012,144 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 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
Qualitative Information on Business Performance
During the first three months of this fiscal year, the global economic environment surrounding theChiyoda Group has been increasingly uncertain, mainly due to economic slowdowns in theEuropean economy represented by the Greek financial crisis and emerging countries including
China, geopolitical risk and Iranian reentry into the oil market, while the US economy has been
relatively stable. Notwithstanding the positive outlook for long-term future global energy demand,
short-term investment decision making in numerous oil and gas-related facilities is becoming
unpredictable. The recovery in the Japanese economy has been only moderate as demand has not
fully recovered, despite the government’s easing of fiscal and monetary policies and thedepreciation of the Yen in global financial markets as well as the positive effects from lower oil
prices and the higher stock market situations.
Under such circumstances, the Group has continued to strengthen its core business in theconventional fields of oil and gas, according to strategies defined in its Medium-Term ManagementPlan, which has just passed the middle of the 4-year term. In parallel, the Group has gone for
expansion in new business fields including offshore and upstream business, new and renewableenergy, such as the Hydrogen Supply Chain utilizing Chiyoda’s own technologies, and solar powergeneration utilizing photovoltaic and concentrating solar power technology.
The ongoing projects including LNG plants in Australia, the USA and Russia, refinery plants inVietnam, Qatar and Venezuela, a metal plant in Saudi Arabia, airport projects in Mongolia and thePhilippines, and LNG receiving terminals and photovoltaic power generation systems in Japan haveall progressed properly.
Consequently, consolidated new contracts for the period amounted to 47,306 million yen (91.0%
decrease compared to the same period of the previous fiscal year). The backlog and revenue were1,357,678 million yen (4.2% decrease from the end of the previous fiscal year), and 125,946 million
yen (43.6% increase year on year) respectively. The operating income amounted to 3,979 million
yen (250.4% increase), ordinary income to 3,512 million yen (104.9% increase), and net income
resulted in 2,017 million yen (584.6% increase).
Highlights in this period for each segment are summarized below:
LNG Plants/Other Gas Related Works
The Group was selected as an Engineering, Procurement and Construction (“EPC”) contractor for
an LNG plant in Mozambique. The EPC execution of LNG plants in Australia, the USA and Russia
progressed as planned and Front End Engineering and Design (“FEED”) works for an LNG plant inCanada, USA and Mozambique and a Floating LNG (“FLNG”) facility in Indonesia were also inprogress. Our Qatari subsidiary has been carrying out the Engineering, Procurement andConstruction management (“EPCm”) works for the maintenance and modification of the existing
LNG and gas processing plants built mainly by the Group. In Japan, several EPC works on LNG
receiving terminals and the expansion/modification works of existing plants were going on.
LNG plants and other gas-related works constitute our core business. In that regard, the Group will
pursue any such project whether onshore/offshore, overseas/domestic or conventional/unconventional.
Petroleum/Petrochemicals/Metals
The EPC works were going on for an Engineering, Procurement, Construction and Commissioning(“EPCC”) work for Residue Fluid Catalytic Cracking (“RFCC”) in Malaysia, EPC works for a refineryand petrochemical complex in Vietnam and, a refinery project in Qatar and an Engineering,
Procurement support and Construction management (“EPsCm”) work for heavy crude oil upgrading
facilities in Venezuela. Additionally, our subsidiary in Singapore was performing project
management under the Enterprise Framework Agreement for downstream projects within Asia. For
metals fields, the Group has started an EPC work for Titanium Sponge plant in Saudi Arabia, andcontinued to explore the new business opportunities.
In Japan, we continued to perform the EPC works for modification to fortify the existing facilities inthe case of a possible catastrophe event, petrochemical plant and construction aimed at energy
saving in the facilities.
3General Chemicals/Industries/Metals & Mining/Environment
The Group was moving forward with the EPC execution of a new international airport in Mongolia
and a new Bohol airport in the Philippines, while preparing bids for further airport and/or railway
projects.
Meanwhile, we are also responding to the overseas expansion in Japanese clients’ businesses in
non-hydrocarbon fields. In Japan, we have won a number of EPC works for large-scale photovoltaic
power generation systems. We are executing and expanding our sales activities by enhancing ourgroup operations in this field. In the pharmaceutical industry, the Group has been carrying out EPC
works for manufacturing facilities of active pharmaceutical ingredients, vaccine and bio-medicine
plants.
New Business Fields
The Group, in cooperation with our strategic alliance partner Xodus Group, has started providing
integrated services in the offshore/upstream field especially for Japanese customers. TheEngineering, Procurement, Construction and Installation (“EPCI”) execution of a floating production
unit in Indonesia is in progress. The Group also has invested in Japan Methane Hydrate OperatingCo., Ltd., a joint venture company established by 11 private companies, to develop commercially
viable technology for utilization of seabed methane hydrate.
As for the concentrating solar power system, the Group is continuing to operate a demonstration
plant in Italy with the aim of developing business opportunities in this field. Furthermore, we havedeveloped our own technology for transporting and delivering a large volumes of hydrogen and are
actively collaborating with various parties in order to establish a hydrogen supply chain to achieve ahydrogen-based society.
Moreover, the Group is gearing up for the growing market for the life science field symbolized by iPS
cells and regenerative medicine, applying our pharmaceutical and medical expertise.
Note: See Page 9 for more information on New Contracts, Net Sales and Backlog of Contracts bysegment.

46.

Consolidated quarterly financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31,2015

As of June 30,2015

31,815

41,77053,84053,697

81,49986,99959,66851,206

182,855

184,732

34,955
ሺ56)444,578

34,134
ሺ55)
452,486

7,742
5,266
1,817

7,5835,266
1,698

14,826

14,547

12,0347,450
19,484

11,2707,282
18,55331,3285,853
ሺ231)

29,5393,873
ሺ222)

36,95033,19071,261
515,839

66,291
518,778

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts
receivable from completed
construction contracts
Securities
Costs on uncompleted construction
contracts
Jointly controlled assets of joint
ventureOther
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant andequipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and otherassets
Total non-current assets
Total assets

5

(Millions of yen)
As of March 31,2015

As of June 30,2015

137,652

129,642

991

714

4

4

1,366

1,598

123,869

139,638

364

309

3,988

2,211

3,905
22,197294,339

1,630
21,756
297,506

10,015
339
1,070
1,667
13,093
307,433

10,013
339
1,252
2,505
14,111
311,618

43,396
37,112
115,831
ሺ1,405)
194,934

43,39637,112
114,481
ሺ1,410)
193,580

7,218

6,960

ሺ2,064)

(612)

5,229

4,217

1,076

1,048

11,46011,6142,010
208,405
515,839

1,965
207,160
518,778

Liabilities
Current liabilities
Notes payable, accounts payable
for construction contracts
Short-term loans payable
Current portion of long-term loans
payableIncome taxes payable
Advances received on uncompleted
construction contracts
Provision for warranties forcompleted construction
Provision for loss on construction
contracts
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive
incomeValuation difference on availablefor-sale securities
Deferred gains or losses on hedges
Foreign currency translation
adjustment
Remeasurements of defined benefit
plans
Total accumulated othercomprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6(2) Consolidated statement of income and comprehensive income(Consolidated statement of income)(Millions of yen)Three months ended Three months ended
June 30, 2014
June 30, 2015

Net sales of completed construction contracts

87,678125,946

Cost of sales of completed construction contracts

80,640116,232

Gross profit on completed construction contracts

7,037

9,713

Selling, general and administrative expenses

5,901

5,734

Operating income

1,135

3,979

Interest income

310

423

Dividend income

585

772

Other39

61

Total non-operating income

936

1,257

60

56

Non-operating income

Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity
methodForeign exchange losses

63

437

201

1,206

Other3123

Total non-operating expenses

357

1,724

1,714

3,512

Gain on sales of investment securities

－

2,112

Total extraordinary income

－

2,112

1,714

5,624

Income taxes - current

550

2,694

Income taxes - deferred

816

978

1,366

3,673

Profit347

1,951

Profit (loss) attributable to non-controlling interests

52

ሺ65)

Profit attributable to owners of parent

294

2,017

Ordinary income
Extraordinary income

Income before income taxes and minority interests

Total income taxes

7

(Consolidated statement of comprehensive income)(Millions of yen)Three months ended Three months ended
June 30, 2014
June 30, 2015

Profit347

1,951

Valuation difference on available-for-sale securities

1,588

Deferred gains or losses on hedges

ሺ186)

ሺ257)
1,452

Foreign currency translation adjustment
Remeasurements of defined benefit plans, net oftax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income

ሺ349)

(963)

90

ሺ28)

ሺ25)

(21)

1,117

180

1,4652,132

1,428

2,172

36(39)

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to noncontrolling interests

87.

Production, Contracts and Sales
Millions of yen
Apr. 1, 2015 —Jun. 30, 2015

Apr. 1, 2014 —Jun. 30, 2014
New
contracts(ratio)Net sales(ratio)Backlog ofcontracts(ratio)New
contracts(ratio)Net sales(ratio)Backlog ofcontracts(ratio)Engineering

523,689
99.7%

86,44598.6%

1,495,477
100.0%

46,25097.8%

124,76899.1%

1,356,068
99.9%

LNG Plant

469,27389.4%

36,65841.8%

1,177,258
78.7%

17,06136.1%

70,36255.9%

1,072,612
79.0%

Gas Development/
Processing/Receiving
Refinery/Petrochemical/
Metal
Pharmaceutical/Biochemistry/
ChemicalEnvironment/New Energy/
Infrastructure

20,500
3.9%

6,177
7.0%

36,718
2.5%

2,851
6.0%

4,727
3.8%

29,003
2.1%

17,6703.4%

21,891
25.0%

197,395
13.2%

12,81327.1%

32,932
26.1%

161,565
11.9%

8,441
1.6%

10,262
11.7%

25,479
1.7%

7,967
16.9%

8,2906.6%

30,689
2.3%

7,076
1.3%

10,967
12.5%

56,866
3.8%

4,793
10.1%

7,955
6.3%

60,041
4.4%

727
0.1%

487
0.6%

1,758
0.1%

763
1.6%

500
0.4%

2,156
0.2%

1,331
0.3%

1,232
1.4%

407
0.0%

1,055
2.2%

1,177
0.9%

1,610
0.1%

Total

525,020100.0%

87,678100.0%

1,495,884
100.0%

47,306100.0%

125,946
100.0%

1,357,678
100.0%

Domestic

24,686
4.7%

30,101
34.3%

97,646
6.5%

21,83746.2%

21,75617.3%

100,112
7.4%

Overseas500,334
95.3%

57,57665.7%

1,398,238
93.5%

25,46853.8%

104,189
82.7%

1,257,566
92.6%

OthersOther BusinessNote1: The backlog of contracts for the three months ended June 30, 2015 includes a decrease due tochanges in construction contracts acquired in prior fiscal years, an increase due to adjustments in newcontract amounts, and an increase due to foreign exchange translation adjustments.
Note2: The total amount of the above table does not include consumption tax.
Note3: The classification of the segments within the engineering business was restructured, starting from thisfiscal Year. Therefore this first quarter’s and previous first quarter’s accumulated consolidated
financial results are disclosed under the new classification. There is no change in the handling of thereporting segments.

9