February 12, 2009

Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending March 31, 2009
Company name: CHIYODA CORPORATION
Listing:First Section of the Tokyo Stock Exchange
Stock code:
6366
URL:
http://www.chiyoda-corp.com/
Representative: Takashi Kubota, President & CEO
Inquiries:
Shinji Kusunoki, General Manager, Accounting Department
TEL: +81-45-506-9410 (from overseas)
Scheduled date to file Quarterly Report: February 13, 2009
(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated performance for the Third quarter of the fiscal year ending March
31, 2009 (from April 1, 2008 to December 31, 2008)(Percentages indicate year-on-yearchanges.)(1) Consolidated operating results (cumulative)
Net sales

Operating income

Millions of% yen% Millions of yen%

344,106----

459,00237.3

Net income per share

3Q ended December
31, 2008
3Q ended December
31, 2007

Net income% Millions of yen

Millions of yen
3Q ended December
31, 2008
3Q ended December
31, 2007

Ordinary income

3,040

16,743 (20.4)

6,463

25,977 (1.9)

3,425

15,998 (4.8)

Fully diluted net
income per share

Yen

Yen

13.58

13.58

83.22

83.17

(2) Consolidated financial position
Total assets
Millions of yen

Net assets

Equity ratio

Net assets per share

Millions of yen%

Yen

As of December 31,360,234
139,9842008
As of March 31,
378,819
81,6372008
Reference: Equity As of December 31, 2008: 139,588 million yen

38.7

538.3121.4

422.44–1–

As of March 31, 2008: 81,226 million yen

2. Cash dividends
Cash dividends per share
Record date

First quarter

Second quarter

Third quarter

Fiscal year-endYen
Yen
Yen
Yen
Fiscal year ended10.00
March 31, 2008
Fiscal year ending–––
March 31, 2009
Fiscal year ending
March 31, 2009–
6.00(Forecast)
Note: Revision of the forecast in the Third quarter of the fiscal year ending March 31, 2009: Yes

3.

AnnualYen
10.00
–
6.00

Consolidated earnings forecasts for the fiscal year ending March 31, 2009 (fromApril 1, 2008 to March 31, 2009)(Percentages indicate year-on-year changes.)
Net sales
Millions ofyen

Fiscal year ending
March 31, 2009

Operating income Ordinary income%

450,000 (25.4)

Millions ofyen%Millions ofyen

7,000 (20.8)%

10,000 (47.7)

Net income pershare

Net income
Millions ofyen%

Yen

5,000 (48.1)

19.68

Note: Revision of the forecasts in the Third quarter of the fiscal year ending March 31, 2009: Yes

4.

Others(1) Significant changes in subsidiaries during the period (changes in specified subsidiaries
resulting in the change in scope of consolidation): None
(2) Application of simplified accounting as well as specific accounting for preparing the quarterly
consolidated financial statements: None
(3) Changes in accounting policies, procedures, and methods of presentation for preparing thequarterly consolidated financial statements (changes described in the section of “Changes insignificant matters forming the basis of preparing the quarterly consolidated financialstatements”)
a. Changes due to revisions to accounting standards: Yes
b. Changes due to other reasons: None–2–

(4)Number of issued shares (common stock)a. Total number of issued shares at the end of the period (including treasury stock)
As of December 31, 2008
260,262,529 shares
As of March 31, 2008
193,182,529 sharesb. Number of treasury stock at the end of the period
As of December 31, 2008
954,260 shares
As of March 31, 2008
903,520 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscalyear)
For the Third quarter of the fiscal year ending March 31, 2009 252,260,754 shares
For the Third quarter of the fiscal year ended March 31, 2008 192,256,169 shares* Proper use of earnings forecasts, and other special directions
1. The forward-looking statements, including earnings forecasts, contained in thesematerials 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. Commencing with the current fiscal year, the “Accounting Standard for Quarterly
Financial Reporting” (ASBJ [Accounting Standards Board of Japan] Statement No. 12)
and the “Guidance on Accounting Standard for Quarterly Financial Reporting” (ASBJ
Guidance No. 14) are applied. Also, quarterly consolidated financial statements areprepared in accordance with the “Regulation for Quarterly Consolidated Financial–3–

5. Qualitative Information and Financial Statements
Qualitative Information on Consolidated Results of Operations

During the third quarter (the nine months ended December 31, 2008), the rapid global economic
slowdown caused uncertainty to emerge regarding plans for the construction of new plants
overseas and the direction of capital investment in Japan by oil, power and gas companies, which
had been driven by growth in energy demand.
Under these circumstances, the Chiyoda Group made concentrated efforts to properly executeongoing projects. These included completing and handing over the first liquefied natural gas (LNG)
plant in Russia and the first train of the ultra-large-scale LNG plants (7.8 million tonnes per annum)in Qatar. While the prolonged commercial discussion with Qatar Liquefied Gas Co., Ltd. (3) and (4)to extend the construction period and increase the contracted price for construction of Train 6 andTrain 7 is almost concluded, however, construction cost budget is not fully recovered because theprice increase secured fell short of projected additional costs to be paid to subcontractors and otherparties.

As a result, on a consolidated basis, new contracts were ¥139,828 million, a 34.0% decreasecompared with the same period of the previous year, and the backlog of contracts was ¥449,841million, a decrease of 43.9%. Revenues decreased 25.0% to ¥344,106 million, operating income
decreased 81.8% to ¥3,040 million, recurring profit decreased 75.1% to ¥6,463 million and net
income decreased 78.6% to ¥3,425 million.

Results by Business Segment
The following is a summary of operating results by business segment.

Natural Gas and Electric Power
Overseas, the Chiyoda Group focused on acquiring contracts for research and Front-EndEngineering and Design (FEED) in order to secure contracts for large-scale projects under gasrelated investment plans by National Oil Companies and International Oil Companies. In the thirdquarter, Chiyoda was awarded contracts including the FEED and executing planning work for theBarzan onshore gas processing project in Qatar, an EPC competition contract for participation in anEPC design competition for an LNG plant in Papua New Guinea and an LNG plant project inAlgeria. The gas and electric power sector in Japan, Chiyoda worked to acquire contracts for newconstruction and expansion of large-scale LNG receiving terminals being planned as a result of theshift in energy sources to LNG for reasons including curbing CO2 emissions and growth in gasrelated businesses.

–4–Petroleum, Petrochemicals and Gas Chemicals
Although orders received were firm through the second quarter, uncertainty regarding the directionof capital investment in Japan’s petroleum sector has emerged due to the rapid global economic
slowdown. Reorganization has begun in the domestic petroleum industry, which is also facing
emerging issues such as how to improve efficiency through reorganization, as well as
environmental problems, strengthening the competitiveness of oil refineries and responding to newenergy sources.
In the petrochemicals sector, although many capital investments have been postponed due tocurtailment of production in the electronics and automobile industries and other factors resulting
from the deterioration of business conditions, the Group is focusing on acquiring contracts forfacility maintenance and is working to acquire development projects including pilot facilities.

General Chemicals and Industrial Machinery
In the general chemicals and industrial machinery sectors, although many capital investments werepostponed or revised due to the rapid economic slowdown, the Group aggressively worked toacquire contracts in the promising field of solar battery components, reflecting global policies tospread the use of solar batteries.
In the pharmaceuticals sector, the Group steadily acquired contracts due to an increasing drive toinvest in new construction and expansion of existing plants and R&D facilities in order to adapt torecent changes in the business environment.

Environment and Others
Chiyoda continued to conduct marketing activities in Japan and overseas for its original CT-121
flue gas desulfurization process technology. In Europe, where desulfurization technology is mostadvanced, Chiyoda licensed its technology for use at a major power station in Denmark.

–5–6. Consolidated quarterly financial statements(1) Consolidated quarterly balance sheets (1/2)(Millions of yen)

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed
construction contracts
Short-term investment securities
Costs on uncompleted construction contracts
Jointly controlled assets of joint venture
OtherAllowance for doubtful accounts
Total current assets
Noncurrent assetsProperty, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets–6–

As of December
31, 2008

As of March 31,
2008

40,82060,48445,26136,36883,841
23,754
106,797
22,683(6)
323,151

10,50016,801
192,683
21,374(5)
338,207

8,026
11,966
2,023
22,015
4,607

8,354
11,935
2,782
23,072
4,714

7,631
3,192(362)
10,46037,083360,234

9,302
4,012
(490)
12,824
40,612378,819

Consolidated balance sheets (2/2)(Millions of yen)
As of December
31, 2008

As of March 31,2008

73,64774,037

10,0282,785

10,0391,408

108,688

185,022

3,374
4,341
2,219
12,720217,805

2,098
4,044
4,196
13,137
293,986

8
2,073
362
2,443
220,249

22
2,226
947
3,196
297,182

Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity

43,38937,10566,658(1,101)
146,05012,934
6,718
65,155(1,059)83,748Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets(569)(5,143)(748)(6,462)396
139,984
360,234(847)(1,667)(6)(2,521)
410
81,637
378,819

Liabilities
Current liabilities
Notes payable, accounts payable for construction
contracts
Current portion of long-term loans payableIncome taxes payable
Advances received on uncompleted construction
contracts
Provision for warranties for completed construction
Provision for loss on construction contracts
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision
Other
Total noncurrent liabilities
Total liabilities–7–(2) Consolidated statement of income
Third quarter ended
December 31, 2008

(From April 1, 2008
to December 31, 2008)

Consolidated quarterly statements of income
Net sales of completed construction contracts
Cost of sales of completed construction
contracts
Gross profit on completed construction
contracts
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividends income
Equity in earnings of affiliates
Real estate rent
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Stock issuance cost
Rent expenses on real estates
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Reversal of allowance for doubtful accounts
Total extraordinary income
Extraordinary loss
Loss on valuation of investment
Other
Total extraordinary losses
Income before income taxes and minority
interests
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income
Net income–8–344,106
332,226
11,880
8,839
3,040
3,883
646
93
195
115
4,933
257
790
271
117
72
1,510
6,463
124
124
1,859
53
1,913
4,673
4,304
(3,073)
1,230
17
3,425

7.

Production, Contracts and Sales (Consolidated)
Millions of Yen
3Q FY2008
Apr. 1, 2008 —December. 31, 2008
Net salesAmt%

New contracts
Amt%

Backlog of contracts
Amt%

Business Segment
Engineering
LNG plants..................................
Gas and power utilities ...............
Gas chemicals ............................
Petroleum and petrochemicals ...
General chemicals........................
Industrial machinery .....................
Environment and other ...............
Total Engineering

39,177
19,342
105
47,501
22,6641,950
4,159
134,902

28.0
13.8
0.1
34.0
16.2
1.4
3.0
96.5

156,642
100,748
181
55,711
13,9404,463
7,805
339,493

45.5
29.3
0.1
16.2
4.0
1.3
2.3
98.7

161,703140,228997
98,05028,6894,383
15,178449,232

35.9
31.2
0.2
21.8
6.4
1.0
3.4
99.9

Other...........................................

4,925

3.5

4,613

1.3

609

0.1

Domestic.....................................
Overseas ....................................
Total ...........................................

82,86556,962
139,828

59.3
40.7
100.0

79,336
264,770
344,106

23.1
76.9
100.0

193,114
256,726
449,841

42.9
57.1
100.0

Millions of Yen
3Q FY2007
Apr. 1, 2007 —December. 31, 2007
RevenuesAmt%

New contracts
Amt%

Backlog of contracts
Amt%

Business Segment
Engineering
LNG plants..................................
Gas and power utilities ...............
Gas chemicals ............................
Petroleum and petrochemicals ...
General chemicals........................
Industrial machinery .....................
Environment and other ...............
Total Engineering

43,373
28,863217
97,61817,761
4,470
15,214
207,518

20.5
13.6
0.1
46.1
8.4
2.1
7.2
98.0

307,396
63,854702
54,21818,225
6,821
3,545
454,764

67.0
13.9
0.2
11.8
4.0
1.5
0.7
99.1

384,875
260,272
1,229
116,478
17,303
3,061
18,928802,149

48.0
32.5
0.1
14.5
2.2
0.4
2.3
100.0

Other...........................................

4,238

2.0

4,238

0.9

——

Domestic.....................................
Overseas ....................................
Total ...........................................

120,046
91,711
211,757

56.7
43.3
100.0

85,390373,612459,002

18.6
81.4
100.0

178,745
623,404
802,149

22.3
77.7
100.0

Note: The backlog of contracts for the nine months ended December 31, 2008 includes a decrease due tochanges in construction contracts acquired in prior fiscal years, an increase due to adjustments in
new contract amounts, and an increase due to foreign exchange translation adjustments.

–9–Reference

Summary Consolidated Statement of Income
for the Second Quarter of the Previous Fiscal Year
Millions of Yen
3Q FY2007
Apr. 1, 2007–
Dec. 31, 2007
459,002433,462
25,540

%
100.0
94.4
5.6

8,797

1.9

16,743

3.7

Other Income
Interest .............................................................
Dividend income ..............................................
Equity in earnings of associated companies....
Other ..............................................................
Total Other Income ................................................

8,796
335
229
615
9,977

2.2

Other Expenses
Interest expense ..............................................
Other ................................................................
Total Other Expenses ............................................

316
425742

0.2

Recurring Profit ........................................................

25,977

5.7

Extraordinary Gain
Gain on sales of investment securities ............
Reversal of allowance for doubtful accounts ...
Reversal of allowance for investment loss.......
Other ................................................................
Total Extraordinary Gain .......................................

644
37—
72754

0.2

Extraordinary Loss
Loss on valuation of investment securities ......
Other ................................................................
Total Extraordinary Loss.......................................

194
0195

0.1

26,537

5.8

10,5281015,998

2.3
0.0
3.5

Revenues ................................................................
Cost of Revenues...................................................
Gross profit...............................................................
Selling, General and
Administrative Expenses...................................
Operating income.....................................................

Income before income taxes and minority
interests....................................................................
Total tax ...................................................................
Minority interests in net income ...............................
Net Income..............................................................

– 10 –