ANNUAL REPORT 2011
For the year ended March 31, 2011

Engineering Excellence,
Value Creation

At a Glance*1(Billions of yen)

Revenues*2

Gas Processing*

3*4

ProfileFine Industries*

5*6

Since its establishment in 1948, Chiyoda Corporation has engaged in engineering and construction work andservices at innumerable industrial plants both in Japan and overseas in the fields of oil, natural gas and otherenergy sources; petrochemicals and chemicals; pharmaceuticals; and general industrial machinery.
Thirty-eight years ago in 1972, Chiyoda’s founder was already emphasizing in a booklet entitled
Legacy for the Twenty-first Century that sustainable social development should progress by harmonizing

Petroleum and Petrochemicals

nature and industrial development.

environmental issues we currently face, and have been putting those words into action ever since. This booklet
With over 60 years of technological experience, Chiyoda is working to build on its position as theBillion yen

89.0
43.7
45.1
53.5
15.8

40.3
48.2
85.9
40.2
20.7

53.5

ment through our engineering and technology by providing appropriate solutions to the various energy andis available on our website.

Billion yen

(36%)
(18%)
(18%)
(22%)
(06%)

*7

We were one of the first companies to state our intention to contribute to sustainable social develop-

Backlog of Contracts

247.1 235.3 497.6

LNG

Courtesy of Mizushima LNG Co., Ltd.

New Orders

45.1
Other

89.0
43.7

40.2

(17%)
(20%)
(37%)
(17%)
(09%)

Billion yen

225.6
127.0
78.4
39.1
27.5

(45%)
(26%)
(16%)
(08%)
(05%)

39.1

40.3

78.4

48.2

225.6

127.0

85.9

“Reliability No. 1” project company with a high level of customer and investor trust, not only in terms oftechnology but also in terms of our people and management. At the same time, we will continue to improve

Major Projects In Progress

our financial strength and to raise our corporate value.

Al Jubail Export Refinery
Saudi Arabia/Refinery

Contents
Profile01 At a Glance
02 Financial Highlights
03 To Our Stakeholders
04 Topics
06 Corporate Governance

08 Board of Directors, Corporate Auditors andExecutive Officers
09 Management's Discussion and Analysis
13 Consolidated Financial Statements
50 Global Network
52 Corporate Information

Cover Photo: The world's largest LNG plant; 7.8 million ton per-annum capacity for each train.
Photo Credit: Qatargas Operating Company, Ltd.
Forward-Looking Statements: This annual report contains forward-looking statements about Chiyoda Corporation’s outlooks, plans, forecasts, results and other items that may take place in the future.
Such statements are based on data available as of July 1, 2011. Unknown risks and other uncertainties that happen in the future may cause our actual results to be different from the forward-looking
statements contained in this report. The risks and uncertainties include business and economic conditions, competitive pressure, changes in laws and regulations, addition or elimination of products,
and exchange rate fluctuation, among others.

Arzew LNG
Algeria/LNG
Pearl GTL
Qatar/GTL
Plateau Maintenance
Project
Qatar/LNG
Long Term Service
Agreement
Qatar/LNG

Vopak
Singapore/
Tank terminal
Shell Bukom
Singapore/
RefineryTokuyama
Malaysia/Renewable
Energy Material
Shell Portdickson
Malaysia/Refinery

CT-121*8
U.S.A./FGD*9PNG LNG
Papua New Guinea/LNG
IchthysAustralia/LNG
BrowseAustralia/LNG

Brazil FLNG
Brazil/FLNG
EPC Execution
FEED (Front-End Engineering and Design)*1: Courtesy of Qatargas Operating Company Limited *2: Courtesy of Shell *3: Classified as “Gas and power utilities” in “Consolidated Financial Results” *4: Courtesy of Solar Frontier K.K.
*5: Classified as “Industrial machinery” and “General chemicals” in “Consolidated Financial Results” *6: Courtesy of Kashima Aromatics Co., Ltd. *7: Water Treatment Plant*8: Licensing/Technical Supervision *9: FGD= Flue Gas DesulfurizationC H I YODA CORPORATION ANNUAL REPOR T 2011 01

Financial Highlights
Years Ended March 31, 2011, 2010, 2009, 2008 and 2007

Thousands of
U.S. dollars

Millions of yen

2011

2010

2009

2008

2007

2011

Revenues¥247,082¥312,985¥446,438¥603,559¥484,895$2,976,896

Cost of revenue

215,563298,766

427,461

583,035

445,158

2,597,148

Operating income
Income before income taxes
and minority interests
Net income

17,544

1,702

7,227

8,839

28,700211,385

11,476

4,714

9,651

18,99137,935

138,276

7,979

2,953

6,498

9,640

23,531

96,143

Total assets¥353,392¥328,174¥357,816¥378,819¥442,952$4,257,744

Total equity

155,758

149,253

145,917

81,637

77,414

1,876,613

173.8

175.2

161.1

115.0

118.9

To Our Stakeholders

For the YearAt Year-End

Current ratio (%)

Takashi Kubota
President & CEO
Chiyoda Corporation

Per Common Share (Yen and U.S. dollars)
Earnings per share (EPS)¥30.79¥11.39¥25.58¥50.15¥122.41

Book value per share (BPS)

599.15

573.61561.12422.24400.56

11.0

3.5

7.5

10.0

15.0

Dividends per share

Reliability No.1 Your Partner for Success$0.13

Ratios (%)
Return on assets (ROA)

4.6

1.4

3.1

4.7

10.2

Return on equity (ROE)

5.3

2.0

5.7

12.2

35.5

Notes: 1. U.S. dollar amounts are translated, for convenience only, at the rate of ¥83 = US$1, the approximate exchange rate at March 31, 2011.
2. Yen amounts are rounded down to the nearest million. U.S. dollar amounts and percentages are rounded to the nearest unit.

Revenues

Operating Income

Net Income

Billions of yen
800

Billions of yen
30
28.7

Billions of yen
30

700

500

484.9

23.5

25

603.6

600

20

446.4

400

247.1

8.8

10

200

2007

2008

2009

2010

2011

0

9.6

10

7.2

5

100
0

20

15

313.0

300

17.5

3.0

1.7
2007

2008

2009

2010

2011

Revenues by Industry
6%

0

2007

2008

18%

18%

Gas Processing*

49%

Fine Industries*

51%

Petroleum andPetrochemicals
Other

C H I YO DA CORPORATION ANN UAL REPOR T 2011

2011

Domestic

2

247,082 Millions of yen
02

2010

Overseas
1

36%

2009

Revenues by Region

LNG

22%

8.0

6.5

*1: Classified as “Gas and power utilities” in“Consolidated Financial Results”*2: Classified as “Industrial machinery” and“General chemicals” in “Consolidated Financial Results”

Thank you for your exceptional support over thispast fiscal year.
I also wish to express our condolences
to all of those affected by the Great East Japan
Earthquake and the ensuing tsunami, a tragedy
that has deeply touched us all.
I would like to present the Chiyoda
Group corporate report for the fiscal year ended
March 31, 2011.
With the completion of the final two of
six LNG trains in Qatar, the country is now
capable of producing an annual 77 million
tonnes of liquefied natural gas. We are proud tosay that Chiyoda was instrumental in engineering and constructing almost all of the LNG
plants in Qatar. Such experience in large- scale
LNG plant will be invaluable to our ongoingprojects in Papua New Guinea and Australia.
A number of plants and related facilities
constructed by Chiyoda in Japan were damaged
during the Great East Japan Earthquake. We
have set up a Reconstruction Support Task Team
headquarters to respond to the needs of ourclients to resume their operations, putting theexpertise and experience of the entire Chiyoda
Group to work for the recovery.

Demand for energy and resources
around the world remains high, with investment
responding in kind. However, we still face thechallenge of a strong yen and intense competition from international contractors including
Koreans.
This past fiscal year marked the secondof our mid-term business plan, "Engineering
Excellence, Value Creation 2012." It was a year inwhich we worked hard on the execution ofprojects in Qatar and other regions, and won
bids in new fields such as renewable energy andnon-ferrous metal plants in Southeast Asia. It
also was a year in which we set in motion anumber of initiatives that will be the foundation
for future growth. I can say with confidence thatthe entire Chiyoda Group management teamand staff are united and eager to pursue thegoal of creating long-term, stable profit growth.
I ask all of our shareholders for yourcontinued support in our ongoing efforts.
Sincerely yours,
Takashi Kubota
President & CEO
Chiyoda Corporation

247,082 Millions of yen
C H I YODA CORPORATION ANNUAL REPOR T 2011 03

Topics

1

3

CHIYODA AWARDED EPC CONTRACT FOR POLYCRYSTALLINE
SILICON PLANT
Chiyoda Corporation and Chiyoda Group company,
Chiyoda Sarawak Sdn. Bhd. * 1 have been awarded acontract to provide the engineering, procurement, andconstruction (EPC) work for a polycrystalline siliconplant for Tokuyama Malaysia Sdn. Bhd. * 2. Chiyoda
began front end engineering services for this plant
during spring 2008 and was recently named, in asigned formal contract, as a partner to perform front
end engineering and EPC work. Construction on theplant began in early 2011 and the plant is scheduled to
begin operations to produce polycrystalline silicon,
which is used as a raw material in solar cells, in thespring of 2013.

A lavish event was held at a specially prepared site in Ras
Laffan Industrial City on December 13, 2010 to observe
Qatar's achievement of producing 77-million tons of
LNG annually.
Chiyoda Corporation’s president Kubota andother executives attended the event, receiving warm
words of praise from HH Sheikh Hamad, Emir of Qatar.
Beginning with the first three LNG trains at Qatargas 1,
Chiyoda has undertaken the EPC work for a total of 12
trains in Qatar and, including front end engineering
design services, has been involved with all 14 trains(Qatargas trains 1 through 7; RasGas trains 1 through 7),
thereby making a significant contribution to the 77-million
ton capacity for annual LNG production in Qatar. With
our history of success in the country, as well as having a
local subsidiary in place, we intend to contribute evenfurther to the greater development of LNG and otherresources in Qatar.

Malaysia
Planned construction site

*1 : Chiyoda Sarawak Sdn. Bhd. is a wholly owned subsidiary of Chiyoda Corporation.
*2 : Tokuyama Malaysia Sdn. Bhd. is a wholly owned subsidiary of Tokuyama Corporation.

Opening ceremony of Chiyoda Sarawak Office:Chiyoda Managing Executive Officer Koshizuka (center)and other attendees at the ceremony.

2

4

CHIYODA COMPLETES RFCC UNIT FOR TAIYO OIL
Chiyoda Corporation’s president Kubota and otherexecutives attended a ceremony held on October 28,
2010 to celebrate the completion of construction for aresid fluid catalytic cracking (RFCC) unit built for
Taiyo Oil Co., Ltd. The unit will produce gasoline-basedmaterials, propylene, and other petrochemicals fromheavy crude oil. Chiyoda achieved the completion of theunit without any accident or injury since construction
began in November 2008.

CHIYODA OFFICERS ATTEND CEREMONY IN QATAR TO CELEBRATE
77 MILLION-TONNE ANNUAL LNG CAPACITY

Emir HH Shiekh Hamad and other VIPs at the Ceremony

CHIYODA COMPLETES CONSTRUCTION OF
KUNITOMI CIS SOLAR CELL PLANT AND MEGA SOLAR FACILITY
Chiyoda won a contract from Solar Frontier to build a CIS
solar cell plant with a mega solar facility installed on theroof of the plant in Kunitomi, Miyazaki Prefecture.
Construction of the mega solar facility was completed in
February of 2011 and The Kunitomi CIS Solar Cell Plant
began commercial operations in March.

RFCC Unit

Solar Cell Plant in Kunitomi

Kunitomi Mega Solar

President Kubota (second from left) at the ceremony

Courtesy of Taiyo Oil Co., Ltd.

04

C H I YO DA CORPORATION ANN UAL REPOR T 2011

Courtesy of Solar Frontier K.K.
C H I YODA CORPORATION ANNUAL REPOR T 2011 05

Corporate Governance
The Chiyoda Group recognizes that management focuses on corporate social responsibility (CSR) that inspires the
support and trust of shareholders, customers, employees, and other stakeholders. We believe that this is a foundationof our corporate activities. As such, we work toward sustainable long-term qualitative growth, continuing to improve
our management basics, and ensuring management soundness and transparency. We have identified improved
corporate governance and stronger internal controls structure as important issues for our company. We are working
to make real progress in these areas.

Corporate Governance and Internal Controls
General Shareholders’ Meeting

ElectionInternal Controls Management Committee
The Company has established an Internal Controls Management Committee to improve our systems of internal controls.
The director over the Operational Auditing Office serves as the committee chair, and heads of departments related tointernal controls serve as committee members.
The Internal Controls Management Committee receives referrals from the Executive Committee to exchange
information and coordinate with each department to determine whether operations are appropriately and efficiently
carried out under an adequate system of internal controls. At the end of the fiscal period (or as deemed necessary), theInternal Controls Management Committee offers advice regarding internal controls improvement to the Executive
Committee.
The Executive Committee takes advice from the Internal Controls Management Committee under consideration,
submitting proposed internal controls improvements to the Board of Directors for decision.

06

C H I YO DA CORPORATION ANN UAL REPOR T 2011

Submit/Report

ReportOrganization Staffing

Audit Referral(advice)
ReportSubmit/Report

Department Internal Controls

Business Execution Departments(Risk Manager)
Self-Assessment

Internal Controls Management Committee
Operational Auditing Office
SQE Division
HSE Management Office
Quality Management OfficeGroup Company Planning and Administration
Corporate Planning DivisionCorporate Services & HRM Division
Finance & Project Management Administration Division
Project Management Departments

Election

ReportCorporate Auditor
Audit Committee
Survey, Report Request

Audit

4 Representative Directors
Executive Committee

Election

CSR Division
Compliance Management OfficeSocial Environment OfficeInformation Security Management Office
Export Control Office
Crisis Manager

Report(departments with internal
control functions)

The Company has structured and is operating the following system of internal controls for the purpose ofoperational effectiveness/efficiency, financial reporting reliability, legal compliance, and asset preservation,according to the unique nature and characteristics of our business.

Supervision

Scheduled Reports(deliverables, etc.)

Corporate Governance System

Status of Internal Controls System

Election

Executive Officers
Executive Officer Meeting

Group
Companies

The Chiyoda Group’s corporate governance system includes a board of directors, corporate auditors/corporate audit
committee, external auditors, and a system of internal controls. We adopted a system of executive officers who areresponsible for the execution of business operations. Executive officers are functionally separate from directors, who
are responsible for management supervisory functions. Executive officers regularly report the status of business
operation execution in a (monthly) executive committee meeting that is also attended by the directors.
The Board of Directors (meeting monthly) is made up of nine directors, four of whom are representative
directors. The Board of Directors oversees executive officers in their execution of business operations, ensuringthat decisions related to important matters to the Company are rationally and efficiently carried out. The Board
delegates a portion of its authority to the Executive Committee to ensure that decisions related to the executionof business operations are implemented quickly in order to respond appropriately to rapidly changing social andeconomic conditions.
The Executive Committee is made up of the four representative directors who make decisions delegatedto them with respect to the execution of business operations. In addition, the Executive Committee also performs
preliminary deliberations regarding matters to be brought before the Board of Directors for resolution. As a rule,
the Executive Committee meets on a weekly basis.
The Chiyoda Group employs four corporate auditors, three of which serve on a full-time basis. Three ofthe four corporate auditors are outside corporate auditors. Corporate auditors are responsible for auditing thestate of execution of director duties. Of the outside corporate auditors, two are independent auditors, and one
corporate auditor is extensively versed in finance and accounting.

Submit/Report

Directors
Board of Directors

The following paragraphs describe the current status of corporate governance at the Chiyoda Group:

Overview and Rational for Adoption of Corporate Governance System

Election

External
AuditorFinancial
Audit

External Directors and Outside Corporate Auditors
Status of External Directors and Outside Corporate Auditors
The Company employs four corporate auditors, three of whom are outside corporate auditors. The Company does notelect external directors.
The names of outside corporate auditors and the Company’s rationale for selecting them (including therationale for designation as independent directors of Hiroshi Ida and Yukihiro Imadegawa, both on file with the Tokyo
Stock Exchange as independent directors) are as follows.
Name

Rationale for Election as Outside Corporate Auditor

Hiroshi Ida

The individual is able to contribute to the sound management of the Company through neutral and objective audits
based on his experience as a former executive officer with Mitsubishi UFJ Trust and Banking Corporation.
<Rationale for Designation as an Independent Director>
The individual is not involved in any matters that conflict with the interests of general Company shareholders,and is recognized as an outside corporate auditor having no conflict of interest with general Company shareholders.

Masanori Ito

The individual is able to contribute to the sound management of the Company through neutral and objective audits based on
his experience (including expertise in finance and accounting) as a former director and CFO of Space Communications Corporation.

Yukihiro Imadegawa

The individual is able to contribute to the sound management of the Company through neutral
and objective audits based on his expertise in corporate law as an attorney.
<Rationale for Designation as an Independent Director>
The individual is not involved in any matters that conflict with the interests of general Company shareholders,and is recognized as an outside corporate auditor having no conflict of interest with general Company shareholders.

There are no particular relationships of interest between Company and outside corporate auditors.

Rationale for Adoption of Current System
The Board of Directors supervises the performance of executive officers and determines important matters concerning the Company. The Company employs four corporate auditors, three of whom are outside corporate auditors. This
leads to a stronger monitoring function over management. The Company employs dedicated staff to assist corporate
auditors in their duties, and has set in place a system for coordination between external auditors and corporate
auditors and between corporate auditors and the Operational Auditing Office. This system of coordination ensures theviability of audits. Having three outside corporate auditors participating in audits as in the current system ensures thatmanagement oversight functions in a fully objective and neutral fashion.

Director Compensation, Etc.
Total Compensation for Each Director Category; Total Compensation by Director Type,and Number of Directors in Question
Number Base Compensation Incentive Compensation Stock-Based Compensation
Directors

9¥187 million¥21 million¥53 million

Corporate Auditors

4

77

—

—

Notes:
1. Total director compensation is ¥263 million. Total corporate
auditor compensation is ¥77 million. Total outside corporate
auditor (three individuals) compensation is ¥55 million.
2. The number of directors above discloses the number of directors
and corporate auditors receiving compensation during the fiscal
period, including one individual who retired as of the 82nd
General Shareholders’ Meeting held June 24, 2010.

C H I YODA CORPORATION ANNUAL REPOR T 2011 07

Board of Directors, Corporate Auditorsand Executive Officers (As of July 1, 2011)

Results of Operations

Board of Directors
Representative Directors / Members of Executive Committee

Analysis of Results

Directors

President & CEO

Takashi Kubota

Managing
Executive Officer

Satoru Yokoi

Executive Vice
President

Yoichi Kanno

Managing
Executive Officer

Kazuo Obokata

Senior Managing
Executive
Officer & CFO

Masahito Kawashima*1

Managing
Executive Officer

Hiromi Koshizuka

Senior Managing
Executive Officer

Hiroshi Ogawa

Managing
Executive Officer

Shogo Shibuya*1

Director

Kazushi Okawa

Corporate Planning, Management & FinanceCorporate Planning, Management & Finance

Project Operations

Business Development Operation,
Project Operations

CSR Division, Operational Auditing Office

Technology Development Business Operation

Technology & Engineering

Corporate Auditors
Wataru Shimono

Hiroshi Ida *2

Masanori Ito *2

Yukihiro Imadegawa *2

Executive Officers
Managing Executive
Officer

Sumio Nakashima

Managing Executive
Officer

Katsutoshi KimuraManaging Executive
Officer

Kenjiro Miura

Executive Officer

Katsuo Nagasaka

Managing Executive
Officer

Masahiko Kojima

Executive Officer

Seiichiro Ikeda

Managing Executive
Officer

Koichi Shirakawa

Managing Executive
Officer
Executive Officer

Executive Officer

08

Management’s Discussion and Analysis

Project Operations

General Manager, Finance &Project Management Administration Division

Projects Logistics and Construction

General Manager, Corporate Planning Division

Project Operations
Project Director

Takao Kamiji

Technology Development Business Operation
General Manager,
Strategic Business Development Division

Tsuyoshi Kakizaki

Projects Logistics and Construction

Executive Officer

Executive Officer

Executive Officer

While emerging economies in Asia enjoyed strong growth during the fiscal year, the financial crisis in Europe and theunstable political situation in the Middle East and Africa have caused worries about the future direction of the global
economy. Companies in certain sectors in Japan showed improved earnings, but the devastation of the March 11
earthquake and the impact of electricity shortages cause concern as limiting factors on corporate activities.
Major energy projects are taking shape around the world to meet growing demand for oil and gas, and weare finding competition with major international contractors to be even tougher, particularly with the yen at suchstrong valuations against other currencies.
Faced with these conditions, we placed particular focus on bidding activities, making the most of ourtechnological superiority in the market. We won bids for the construction of a polycrystalline silicon plant in
Malaysia, for an LNG (liquefied natural gas) plant in Australia, and for LNG receiving terminal construction in Fukuoka
Prefecture here in Japan. At the same time, we are moving forward in existing construction projects, including an
LNG plant project in Papua New Guinea. We also completed construction for LNG plant Trains 6 and 7 to be
operated by Qatargas.
As a result, consolidated new contracts for the fiscal year under review amounted to 235,267 million
yen (45.2% decrease year on year). Consolidated contract backlog was 497,648 million yen (7.2% decrease).
Consolidated revenues amounted to 247,082 million yen (21.1% decrease), while operating income amounted
to 17,544 million yen (930.8% increase), ordinary income amounted to 15,732 million yen (225.2% increase),and net income for the period amounted to 7,979 million yen (170.1% increase).
With the recovery of client facilities in mind in the wake of the March 11 earthquake, we set up a
Reconstruction Support Task Team for our clients to resume their operations.

Ryosuke Shimizu

General Manager, Global Operation Division

Kenji Hotta

General Manager, Corporate Services &HRM Division General Manager,
Executive OfficeBusiness Development Operation

General Manager, International Project Division 2

Noriyuki Kasuya

Corporate Planning, Management &Finance Office of the President

Executive Officer

Mitsuya Ogawa

Executive Officer

Nobuyuki Uchida

General Manager, International Project Division 1

Technology & Engineering Project Manager

Results by Business Segment
Natural Gas and Electric PowerWe are currently carrying out work on the LNG plant in Papua New Guinea, EPC (Engineering/Procurement/
Construction) services for a gas processing plant in Qatar, and basic design services for a floating LNG plant inBrazil, and we have completed EPC services in Qatar and several basic design services for large-scale LNG plants.
Moving forward, we continue to roll out new sales activities to win contracts for various types of basic design
services; in Australia, we recently won a contract to provide basic design services for an LNG plant. Under along-term service contract, the Group’s subsidiary in Qatar is undertaking renovation and repair work for the
LNG/gas processing plants that were originally built by the Chiyoda Group. The subsidiary is also moving forwardwith EPCm (Engineering/Procurement/Construction management) services for helium extraction facilities. We arealso involved in other sales activities to perform similar services for other LNG and gas processing plants in Qatar.
In Japan, we won a contract to provide EPC services for a CO2 capture facility incorporating newtechnologies to reduce future CO2 emission. In addition to a new contract for LNG receiving terminal in Fukuoka
Prefecture, we made progress in construction at three similar projects in Niigata and Okayama Prefectures. We
completed one of those projects, the expansion project at the Mizushima LNG receiving terminal.

Eisaku Yamashita

Business Development Operation
General Manager,
Business Development Management DivisionC H I YO DA CORPORATION ANN UAL REPOR T 2011

*1 : New Appointment on June 23, 2011 *2 : Outside Corporate Auditor

C H I YODA CORPORATION ANNUAL REPOR T 2011 09

Management Policies
Petroleum, Petrochemicals and Gas Chemicals
Overseas, the Group brought resources to bear on planned investment projects in oil refineries and other venturesin the Middle East and Southeast Asia. We continue to move forward in Saudi Arabia by providing EPC services fora heavy oil cracking unit and, in Singapore, we completed EPC services for a tank terminal and EPCm services foran existing FCC (Fluid Catalytic Cracking) unit expansion project. Successful engagements at these and otheroverseas locations have helped us become stronger as a Group of companies, by increasing the scope of ourglobal operations.
Domestically, we completed construction for an RFCC (Residual Fluid Catalytic Cracking) unit and an
HS-FCC (High-Severity Fluid Catalytic Cracking) semi-commercial unit (fiscal 2010 portion). We also tailored oursales activities to securing contracts related to oil refinery efficiency improvements, competitiveness, and energy
savings. We won a bid for a benzene extraction unit construction project as a result.

1

The shared corporate philosophy of the Chiyoda Group is to “enhance our business in aiming for harmony
between energy and the environment and contribute to the sustainable development of a society as anintegrated engineering company through the use of our collective wisdom and painstakingly developed
technology.” We use every effort to conduct business that inspires trust and empathy from our shareholders,our clients, our subcontractors and vendors, our employees, society, and all of our stakeholders.

2

General Chemicals, Industrial Machinery, Environment and Others

Major contracts included in the consolidated results for the period- LNG plant Trains 6 & 7 for Qatar Liquefied Gas Co., Ltd. (3) and (4)*- LNG plant construction in Papua New Guinea

Domestic- Solar Frontier K.K., CIS Solar Cell Factory No. 3 (construction)- Chubu Electric Power Co. Inc, Joetsu Thermal Power Station LNG Terminal Facilities (construction)- JX Nippon Oil & Energy Corporation HS-FCC Semi-Commercial Unit (construction; 2010 portion)*- Taiyo Oil Co., Ltd. RFCC Complex Unit (construction)** : Projects completed during the period.

OUTLOOK FOR THE NEXT FISCAL YEAR
Chiyoda will continue to promote its sales activities and win contracts in the areas where Chiyoda can bestleverage its technological advantages while continuing to work diligently on the execution of existing projects
including the large project in Papua New Guinea and other projects overseas and domestic.
In consideration of these circumstances, and assuming an exchange rate of ¥80/dollar, our forecasts forthe fiscal year ending March 31, 2012 include 550.0 billion yen in new consolidated contracts and250.0 billion yen in revenues. Our forecast for the consolidated operating profit is 11.0 billion
yen, consolidated ordinary income is 12.0 billion yen, and the consolidated net income is 8.0
billion yen.
10

C H I YO DA CORPORATION ANN UAL REPOR T 2011

Management Indices Measuring Progress in our Medium-Term Business Plan and Targets
To improve our value as a corporate group, we created the "Engineering Excellence, Value Creation 2012" four-yearbusiness plan. This plan began fiscal 2009 and will run through March 2013 (fiscal 2012). We officially announced
this plan on May 13, 2009. (See http://www.chiyoda-corp.com/ir/en for our four-year plan and financial report)
With two of the four years of this business plan having passed, we reviewed our progress, recognizingchanges in external factors. In conducting our review, we took a pragmatic view of the fact that consolidated newcontracts for the fiscal year 2010 underperformed our original projections by a significant margin. We made a
careful and thorough study as to whether our current business plan policies and strategies were realistic. We also
looked at the likelihood of reaching our quantitative targets.
As a result of this review, we identified the following (3., below) as important policies and issues
which we will address over the next two years, in light of the fact that there have been no major changes inour basic approach to the targets we set in our original business plan (management vision and strategies).
Our efforts will extend throughout the whole Chiyoda Group as we pursue these policies and issues to create
concrete results.
Our medium-term business plan stated a target of 23 billion yen in consolidated net income for the fiscal
year 2012 (ending March 2013), the final year of our current plan. However, looking at new orders in the prior fiscal
year, we now consider this target to be very difficult to achieve. We intend to execute on these policies andimprove the profit and loss to the greatest extent possible, given the current circumstances.

The Chiyoda Group is moving ahead in new fields of business with a polycrystalline silicon (components forphotovoltaic cells) plant project in Malaysia and a nickel refining plant in the Philippines. At the same time, we arealso providing EPC services in Japan for projects related to solar cells and lithium ion batteries. We won contracts
in Saudi Arabia for survey and research services related to industrial waste water recycle at large industrial
complex. The strength of the Japanese yen has encouraged Japanese companies to expand overseas, investing insolar power/solar heat and other projects driven by low-carbon technologies. Accordingly, we have identified
these projects as targets of our sales efforts.
Our experience in providing basic design services for high-bioactive drug production facilities—notably
producing bioactive drugs (antibodies/vaccines) and cancer medicines—has led to new opportunities for related
EPC contracts.

Overseas

Basic Management Policies

3

Issues
While the ultimate impact of the March 11 earthquake is unclear, the worldwide demand for LNG and otherenergy resources remains strong. We have noted a rise in orders for large-scale energy facilities, driven by clients
who are actively pursuing growth-oriented investments. Meanwhile, we envisage encountering stiffer competition
from companies that do business in our major business segments, particularly while the yen continues to bestrong compared to other world currencies. Given this business environment, we have identified the following
policies and issues as important factors for fiscal 2011 (ending March 2012) that will drive our growth strategy andbusiness fundamentals. These factors reflect our review of our "Engineering Excellence, Value Creation 2012"business plan mentioned above. We will come together as a unified group in pursuit of these initiatives.

C H I YODA CORPORATION ANNUAL REPOR T 2011 11

Co n s o l i d ate d Fi n a n c i a l St ate m e nt s

GOING FORWARD STRATEGIES FOR GROWTH(a) Win more LNG contracts/Further strengthen core businesses
First, we will offer support and propose projects to our existing clients, leading to a steady flow of contracts in
our core LNG/gas plant business. We will build stronger business fundamentals toward greater operational
capacity, reducing costs across the board to bolster our competitive position and inspire even greater trustfrom our clients.

(b) Expansion into new business fields
The hydrocarbon field is likely to become even more competitive. This has been a field of emphasis forour company, and we will continue to upgrade our ability to compete. We will also spend time andresources in making specific inroads into new fields (infrastructure businesses/solar heat/water recycle,etc.) in which engineering firms have a responsibility to meet the changing needs of society. At thesame time, we will create stronger partnerships with our major clients, building a deeper foundation ofbusinesses in the non-hydrocarbon fields.

Chiyoda Corporation andConsolidated Subsidiaries(c) Strengthen global operations
We intend to move away from a centrally managed structure to one in which local Group subsidiaries cantake the lead in their local projects. We will set up new locations overseas, provide more support to existing
subsidiaries, and create greater coordination and staff flexibility among Group companies. This new
structure will lead to a growth in our global operations that involves all Chiyoda Group companies.

(d) Investments

Consolidated Financial Statements
for the Years Ended March 31, 2011 and 2010,
and Independent Auditors’ Report

We will make strategic investment for growth, infrastructure investment for a stronger management, andinvestments in research and development. As for the strategic investment for growth, we will invest in
stronger global operations and strategic fields which are infrastructure/solar heat/water recycle, etc.,
businesses.
As an infrastructure investment for a stronger management, we intend to make the continual
investment in IT systems and the implementation of office integration. We will continue strategic R&D
investment and accelerate commercialization.

BUILDING A STRONGER BUSINESS FOUNDATION(e) Better competitive posture/execution capacity
We will enhance the data management to strengthen the projects and corporate management.

(f ) Human resource development and optimum assignment
We will enhance the human resource development system and global resource management.

12

C H I YO DA CORPORATION ANN UAL REPOR T 2011

C H I YODA CORPORATION ANNUAL REPOR T 2011 13

Consolidated Balance Sheets

March 31, 2011 and 2010

Chiyoda CorporationChiyoda
and Consolidated
Corporation
Subsidiaries
and Consolidated Subsidiaries
Consolidated Balance Sheets
Consolidated Balance Sheets
March 31, 2011 and 2010March 31, 2011 and 2010ASSETS

Millions of Yen
2011
2010

ASSETS

CURRENT ASSETS:
CURRENT ASSETS:
Cash and cash equivalents Cash
(Noteand15)cash equivalents (Note 15)¥ 130,618
Short-term investments (Note
Short-term
15)
investments (Note 15)
79
Notes and accounts receivable—trade
Notes and accounts(Notes 3receivable—tradeand 15)(Notes 3 and 15) 41,539
Allowance for doubtful accounts
Allowance for doubtful accounts(3 )Costs and estimated earnings
Costs
on andlong-term
estimated
construction
earnings on long-term construction
contracts (Notes 4 and 15)contracts (Notes 4 and 15)
14,493
Costs of construction contracts
Costsinofprocess
construction contracts in process
12,648
Accounts receivable—otherAccounts(Note 3)receivable—other (Note 3)
7,284
Jointly controlled assets ofJointly
joint venturecontrolled(Note
assets15) of joint venture (Note 15)
88,662
Deferred tax assets (Note 11)
Deferred tax assets (Note 11)18,644
Prepaid expenses and otherPrepaid expenses and other
2,229
Total current assets

Total current assets

PROPERTY, PLANT ANDPROPERTY,EQUIPMENT:
PLANT AND EQUIPMENT:
Land
Land
Buildings and structures Buildings and structures
Machinery and equipment Machinery and equipment
Tools, furniture and fixtures
Tools, furniture and fixtures
Construction in progress Construction in progress
Total
Total
Accumulated depreciationAccumulated depreciation
Net property, plant and equipment
Net property, plant and equipment
INVESTMENTS AND OTHERINVESTMENTSASSETS: AND OTHER ASSETS:
Investment securities (Notes
Investment
5 and 15)securities (Notes 5 and 15)
Investments in and advances
Investments
to unconsolidated
in and advances to unconsolidated
subsidiaries and associatedsubsidiaries
companies and(Noteassociated6)
companies (Note 6)
Software
SoftwareDeferred tax assets (Note 11)
Deferred tax assets (Note 11)
Other assets
Other assets
Allowance for doubtful accounts
Allowance for doubtful accounts
Total investments and otherTotal
assetsinvestments and other assets

Thousands of
U.S. Dollars
Millions(Noteof1)Yen
2011
2011 2010

Thousands of
U.S. Dollars(Note 1)
LIABILITIES2011
AND EQUITY
LIABILITIES AND EQUITY¥ 139,790¥ 130,618$ 1,573,711¥ 139,790
53
79
957
53
39,864 41,539 500,477 39,864
(2 )
(3 )
(39 )
(2 )
11,454
7,283
4,958
69,917
15,523
1,876

14,493 174,626 11,454
12,648 152,386 7,283
7,284 87,770 4,958
88,662 1,068,219 69,917
18,644 224,631 15,523
2,229 26,857 1,876

316,196

290,719 316,196 3,809,598290,719

11,93815,926
1,270
5,358
5
34,500(15,479 )

11,938 11,938 143,843 11,938
15,193 15,926 191,886 15,193
592 1,270 15,308 592
5,157 5,358 64,563 5,157
48
5
72
48
32,931 34,500 415,674 32,931(11,480 ) (15,479 ) (186,498(11,480))

19,021

21,450 19,021 229,176 21,450

5,813

5,153

5,813

70,037 5,153

2,704
2,831
3,948
2,964
(87 )

2,714
3,195
1,745
3,528
(333 )

2,704
2,831
3,948
2,964
(87 )

32,581 2,714
34,116 3,195
47,569 1,745
35,717 3,528(1,052 ) (333 )

18,17416,004 18,174 218,969 16,004

CURRENT LIABILITIES:CURRENT LIABILITIES:$ 1,573,711
Current portion of long-term
Current
debt (Notes
portion7,of14
long-termand 15) debt (Notes 7, 14 and 15)
¥
13
Notes
957and accounts payable—trade
Notes and(Notes
accounts
3 andpayable—trade
15)(Notes 3 and 15) 97,417
500,477
Advance receipts on construction
Advancecontracts
receipts on construction contracts
62,571
Income(39 )taxes payable (NoteIncome15) taxes payable (Note 15)
5,986
Deposits received
Deposits received
4,541
174,626
Allowance for warranty costs
Allowance
for completed
for warranty
works costs for completed works
1,190
152,386
Allowance for losses on construction
Allowance contracts
for losses on construction contracts
1,057
Accrued87,770 expenses and otherAccrued(Note 3)
expenses and other (Note 3)
9,109
1,068,219
224,631
Total current liabilities Total current liabilities
181,887
26,857
NON-CURRENT LIABILITIES:NON-CURRENT LIABILITIES:
3,809,598
Long-term debt (Notes 7, 14
Long-termand 15) debt (Notes 7, 14 and 15)
10,220Liability for retirement benefits
Liability
(Note
for8)
retirement benefits (Note 8)
2,809
Provision for treatment of Provision
PCB wastefor treatment of PCB waste
131
143,843
Asset retirement obligations
Asset retirement obligations
224
191,886
Other liabilities (Note 11) Other liabilities (Note 11)
2,361
15,30864,563
Total non-current liabilitiesTotal non-current liabilities
15,74672
415,674
COMMITMENTS
AND CONTINGENTCOMMITMENTS
LIABILITIESAND CONTINGENT LIABILITIES(186,498) 13, 16 and 17) (Notes 3, 13, 16 and 17)(Notes 3,

TOTAL¥ 353,392¥ 328,174¥ 353,392$ 4,257,744¥ 328,174$ 4,257,744
TOTAL

TOTAL

Total equity

¥

17
¥
$13
¥167
17
89,523 97,417 1,173,700 89,523
48,168 62,571 753,874 48,168
4,675 5,986 72,120 4,675
4,497 4,541 54,720 4,497
4,486 1,190 14,338 4,486
4,427 1,057 12,738 4,427
10,162 9,109 109,748 10,162

Thousands of
U.S. Dollars(Note 1)
2011
$

167
1,173,700
753,874
72,12054,72014,33812,738109,748

165,960 181,887 2,191,410165,960

2,191,410

10,022 10,220 123,140 10,022
2,305 2,809 33,843 2,305
123
131
1,580 123
224
2,699
510 2,361 28,453 510

123,140
33,8431,580
2,699
28,453

12,960 15,746 189,720 12,960

189,720

43,396 43,396 522,848 43,396

522,848

37,112 37,112 447,140 37,112
70,759 77,832 937,742 70,759

447,140
937,742(1,215 ) (1,295 ) (15,606 )(1,215 )(15,606 )102(229 ) (2,762 ) 102(156 )
345
4,157 (156 )(1,315 ) (1,919 ) (23,132 )(1,315 )
148,683 155,242 1,870,386148,683
569
516
6,226 569

(2,762 )
4,157(23,132 )
1,870,386
6,226

155,758

149,253 155,758 1,876,613149,253

1,876,613¥ 353,392¥ 328,174¥ 353,392$ 4,257,744¥ 328,174$ 4,257,744

EQUITY229,176 (Notes 9, 10 andEQUITY
20):(Notes 9, 10 and 20):
Common stock—authorized,
Common570,000
stock—authorized,
thousand shares; 570,000 thousand shares;
issued, 260,324 thousand sharesissued,in260,324
2011 andthousand2010 shares in 2011 and 2010 43,396
PreferredPreferred
80,000stock—authorized,
thousand shares 80,000 thousand shares
70,037 stock—authorized,
in 2011 and 2010
in 2011 and 2010
CapitalCapital surplus
37,11232,581 surplus
Retained
Retained earnings
77,832
34,116 earnings
Treasury
Treasury
thousandstock—atsharescost,in 20111,223 thousand shares in 2011
47,569 stock—at cost, 1,223
and 1,117 thousand shares andin 2010
1,117 thousand shares in 2010
(1,295 )35,717
Accumulated
other comprehensive
Accumulated
incomeother(loss):
comprehensive income (loss):(1,052 )Unrealized (loss) gain on available-for-saleUnrealized (loss) securities
gain on available-for-sale securities (229 )Deferred gain (loss) on derivatives
Deferred undergain (loss)
hedgeonaccounting
derivatives under hedge accounting
345
218,969
Foreign currency translation
Foreignadjustments
currency translation adjustments(1,919 )
Total
Total
155,242
Minority interests
Minority interests
516
Total equity

TOTAL

Millions of Yen
2011
2010

Thousands of
U.S. Dollars
Millions(Noteof1)Yen
2011
2011 2010

See notes to consolidated financial
See notesstatements.
to consolidated financial statements.
-2-

14

C H I YO DA CORPORATION ANN UAL REPOR T 2011

-2-C H I YODA CORPORATION ANNUAL REPOR T 2011 15

Consolidated Statements of Income

Years Ended March 31, 2011 and 2010

Consolidated Statement of Comprehensive Income

Chiyoda Corporation and Consolidated Subsidiaries

Chiyoda Corporation and Consolidated Subsidiaries

Consolidated Statements of Income
Years Ended March 31, 2011 and 2010

Consolidated Statement of Comprehensive Income
Year Ended March 31, 2011
Thousands of
U.S. Dollars(Note 1)
2011

Millions of Yen
2011
2010
REVENUE (Notes 3 and 4)

Millions of Yen
2011

Thousands of
U.S. Dollars(Note 1)2011

¥ 7,947$ 95,757(332 )
501(511 )(4,002 )6,046(6,158 )(103 )(1,247 )(445 )(5,362 )COMPREHENSIVE INCOME (Note 18)¥ 7,502$ 90,394

TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO (Note 18):
Owners of the parent
Minority interests¥ 7,545(42 )$ 90,907(513 )¥ 247,082¥ 312,985$ 2,976,896

COST OF REVENUE (Notes 3 and 4)

215,563298,766

2,597,148

Gross profit

31,51914,219379,747

13,974

12,517

168,362

OTHER COMPREHENSIVE INCOME (Note 18):
Unrealized loss on available-for-sale securities
Deferred gain on derivatives under hedge accounting
Foreign currency translation adjustments
Share of other comprehensive loss of associates accounted forusing equity method

17,544

1,702

211,385

Total other comprehensive income

1,078(256 )
104(2,882 )109(4,218 )2,017(249 )
144
1,214

12,994(3,086 )1,259(34,726 )
1,317(50,827 )SELLING, GENERAL AND ADMINISTRATIVE EXPENSES(Notes 3 and 12)
Operating income
OTHER INCOME (EXPENSES):Interest and dividend income
Interest expense
Equity in earnings of associated companies
Foreign exchange (loss) gain
Insurance premiums refunded cancellation
Office integration costs (Note 13)
Loss on adjustment for changes of accounting standard
for asset retirement obligations
Provision for treatment of PCB waste
Other—net(146 )(1,759 )142(123 )
9

Other (expenses) income—net(6,068 )

3,012(73,108 )INCOME BEFORE INCOME TAXES AND MINORITY
INTERESTS

11,476

4,714

138,276

INCOME TAXES (Note 11):
Current
Deferred

9,194(5,665 )8,532(6,806 )110,773(68,254 )

3,529

1,726

42,519

7,947

2,987

95,757(32 )

34(386 )

Total income taxes
NET INCOME BEFORE MINORITY INTERESTSMINORITY INTERESTS IN NET INCOME
ChiyodaCorporation and Consolidated Subsidiaries
NET INCOMEStatements of Income
Consolidated
Years Ended March 31, 2011 and 2010

¥

7,979

2011
PER SHARE OF COMMON STOCK (Notes 2.u and 19):
Basic net income
Diluted net income
Cash dividends applicable to the year-3-

¥ 30.79
11.00

¥
Yen

2,953

2010
¥ 11.39
11.39
3.50

Year Ended March 31, 2011

NET INCOME BEFORE MINORITY INTERESTS

See notes to consolidated financial statements.

1,720

$

96,143
U.S. Dollars
2011$ 0.37
0.13(Continued)-5-

See notes to consolidated financial statements.

16

C H I YO DA CORPORATION ANN UAL REPOR T 2011

C H I YODA CORPORATION ANNUAL REPOR T 2011 17

Consolidated Statements of Changes in Equity

Years Ended March 31, 2011 and 2010

Chiyoda Corporation and Chiyoda
Consolidated
Corporation
Subsidiaries
and Consolidated Subsidiaries
Consolidated Statements of Changes
Consolidated
in EquityStatements of Changes in Equity
Years Ended March 31, 2011 andYears
2010Ended March 31, 2011 and 2010

BALANCE, APRIL 1, 2009

BALANCE, APRIL 1, 2009

Thousands

Thousands

Outstanding
Number of
Shares ofCommonStockCommonStock

Outstanding
Number of
Shares ofCommonCapitalStockSurplus

CommonRetained
StockEarnings

CapitalTreasury
SurplusStockMillions of Yen
Millions of Yen
Accumulated Other Comprehensive
Accumulated
IncomeOther Comprehensive Income
Unrealized
Deferred
Unrealized
Deferred(Loss) Gain
Gain (Loss) (Loss) Foreign
Gain
Gain (Loss)
Foreign
on Availableon Derivatives on AvailableCurrency on Derivatives
Currency
Retained
for-Sale
Treasuryunder Hedge
Translation under Hedge
Minority
for-SaleTranslation
Earnings
Securities
Stock
Accounting
Securities
Adjustments Accounting
Total
Adjustments
Interests

259,328¥ 43,392

259,328¥37,108¥ 43,392¥ 69,730¥37,108¥ (1,105 )¥ 69,730¥ (775 )Net income
Net income
Issuance of common stock by stock
Issuance
option ofplancommon stock by stock option plan
(Notes 9 and 10)(Notes 9 and 10)
32
Cash dividends, ¥7.50 per share Cash dividends, ¥7.50 per share
Changes in the scope of consolidation
Changes in the scope of consolidation
Repurchase of treasury stock
Repurchase of treasury stock(153 )Net change in the year
Net change in the year
BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010

259,2072,953
3

259,102

BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010

43,396259,20737,112

3(1,944 )20

43,39670,759

3(109 )
37,112(1,215 )¥ 43,396¥ 77,832

CommonRetained
Stock Earnings¥ 37,112¥ (1,295 )CapitalTreasury
Surplus Stock(1,315 )569

148,683
149,253569

149,253(156148,683)
7,979(907 )¥ (1,295¥
345)¥ (229¥ (1,919))$ 447,140 $ 522,848$ 852,529 $ 447,140$ (14,645 ) $ 852,529$ 1,240
96,143(10,930 )(1 )$ (14,645$ (1,888) )$ 1,240$ (15,852 )(4,002 )(961 )
6,046(4,002(7,279))$ 447,140 $ 522,848$ 937,742 $ 447,140$ (15,606 ) $ 937,742$ (2,762 )$ (15,606$ 4,157)$ (2,762$ (23,132
)
)

7,979
(907 )(79 )(434 )(604 ) (52 )(79 ) (79 )(434(486
)
)

(52 )

(79 )
(486 )

345¥ 155,242¥ (1,919¥ )516¥ 155,242¥ 155,758¥ 516¥ 155,758

501¥

7,9797,979(907(907))

Thousands of U.S. Dollars (Note 1)
Thousands of U.S. Dollars (Note 1)
Accumulated Other Comprehensive
Accumulated
IncomeOther Comprehensive Income
Unrealized
Deferred
Unrealized
Deferred(Loss) Gain on
Gain (Loss) (Loss) Gain
ForeignonGain (Loss)
Foreign
Availableon Derivatives AvailableCurrency on Derivatives
Currency
Retained
for-Sale
Treasuryunder Hedge
Translation under Hedge
Minority
for-SaleTranslation
Earnings
Securities
Stock
Accounting
Securities
Adjustments AccountingTotal Adjustments
Interests$ 522,848$ 522,848

164

102(1,315 )CapitalSurplus(961 )

153 164(1,215(156) )¥ 77,832¥ (229 )¥ 145,917

7(1,944 )20(109 )
2,408

70,759102(332 ) (604 )

¥ 404

7 7
(1,944(1,944))20 20(109(109))
2,2432,408

878 153(79 )501¥ 145,513¥ 145,917

2,953(109 )
1,211(332 )

Total
Equity2,9532,953

878

CommonStock96,143(10,930 )(1 )¥ (1,469¥ )404

Minority
Interests

2,953
7(1,944 )20(109 )
1,211 2,243(1,944 )20(79 )259,102¥ 37,112¥ (1,368¥ 145,513)

7,979(907 )(105 )¥ 43,396¥ (775¥ (1,469
)
)

2,953

7,979
(907 )Net income
Net income
Cash dividends, $0.04 per share Cash dividends, $0.04 per share
Changes in the scope of consolidation
Changes in the scope of consolidation
Repurchase of treasury stock
Repurchase of treasury stock
Net change in the year
Net change in the year
BALANCE, MARCH 31, 2011 BALANCE, MARCH 31, 20113

(153 )Net income
Net income
Cash dividends, ¥3.50 per share Cash dividends, ¥3.50 per share
Changes in the scope of consolidation
Changes in the scope of consolidation
Repurchase of treasury stock
Repurchase of treasury stock(105 )Net change in the year
Net change in the year
BALANCE, MARCH 31, 2011 BALANCE, MARCH 31, 201132

¥ (1,105¥ (1,368
) )

Total
Total
EquityTotal
Total Equity

Minority
Interests

Total
Equity$ 1,791,371$ 1,798,229$ 6,858$ 1,798,229(7,279 ) (631 )

96,14396,143(10,930(10,930))(1 ) (1 )(961 ) (961 )(5,235 )(5,867 )(631 )

96,143(10,930 )(1 )(961 )(5,867 )$ 4,157$ 1,870,386 $ (23,132$ )6,226$ 1,870,386$ 1,876,613$ 6,226$ 1,876,613$ (1,888$ 1,791,371)$ (15,852$ )6,858
96,143(10,930 )(1 )(961 )
6,046 (5,235 )See notes to consolidated financialSee
statements.
notes to consolidated financial statements.

-6-

18

C H I YO DA CORPORATION ANN UAL REPOR T 2011-6-C H I YODA CORPORATION ANNUAL REPOR T 2011 19

Consolidated Statements of Cash Flows

Years Ended March 31, 2011 and 2010

Chiyoda Corporation and Consolidated Subsidiaries

Chiyoda Corporation and Consolidated Subsidiaries

Consolidated Statements of Cash Flows
Years Ended March 31, 2011 and 2010

Consolidated Statements of Cash Flows
Years Ended March 31, 2011 and 2010

Millions of Yen
2011
2010
OPERATING ACTIVITIES:
Income before income taxes and minority interests
Adjustments for:
Income taxes paid
Depreciation and amortization
Reversal of allowance for doubtful accounts—net(Reversal of) allowance for warranty costs for completed
works(Reversal of) allowance for loss on construction contracts
Provision for retirement benefits—net
Office integration costs
Foreign exchange loss—net
Equity in earnings of associated companies
Changes in operating assets and liabilities:(Increase) decrease in trade notes and accounts receivable,
and costs and estimated earnings on long-term
construction contracts(Increase) decrease in costs of construction contracts inprocess(Increase) decrease in jointly controlled assets of joint
ventureIncrease in interest and dividend receivable
Increase in trade notes and accounts payable
Increase (decrease) in advance receipts on construction
contracts
Increase in deposits received(Increase) decrease in accounts receivable—other
Decrease in accrued liability of a defined contribution
pension plan
Other—net
Total adjustments
Net cash (used in) provided by operating activities—(Forward)¥ 11,476

4,714$ 138,276(7,887 )2,566(245 )(7,531 )
2,059
(6 )

(95,032 )
30,919(2,955 )(3,271 )(3,367 )
505
4,218
169
(104 )

678
125
374
78
(144 )(39,414 )(40,572 )
6,093
50,8272,043(1,259 )(4,821 )469(58,090 )(5,330 )9,692(64,221 )(18,744 )(562 )
8,035

30,508(694 )
12,031(225,834 )(6,782 )96,813

14,22545(1,606 )(43,592 )1
656

171,391544(19,354 )(530 )(16,706 )(800 )(9 )
3,898(6,394 )(201,277 )

8,613$ (63,000 )¥ (5,229 )¥Thousands of
U.S. Dollars(Note 1)
2011¥

Net cash (used in) provided by operating activities—(Forward)
INVESTING ACTIVITIES:Payments for time deposits
Proceeds from withdrawal of time deposits
Payments for purchases of investment securities
Purchases of property, plant and equipment
Purchases of intangible assets
Payments of long-term loans receivable
Proceeds from collections of long-term loans
Payments for acquisition of shares (ARROW HUMANRESOURCES Co., Ltd., for 2010) affecting scope of
consolidation, net of cash acquired
Other—net¥

Millions of Yen
2011
2010

Thousands of
U.S. Dollars(Note 1)
2011

(5,229 )

$

(62 )
35
(974 )(930 )(713 )(24 )81

Net cash used in investing activities
FINANCING ACTIVITIES:
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of common stock
Payments of cash dividends
Payments of cash dividends to minority shareholders
Other—net

¥

8,613

51

(752 )
429(11,744 )(11,205 )(8,596 )(300 )
977

11(388 )
14

133(2,577 )(2,722 )(31,058 )

10,208(10,004 )(539 )
539(535 )(922 )(942 )(63,000 )122,990(120,530 )(906 )
(9 )
(93 )

(18 )
7
(1,940 )(7 )(121 )Net cash used in financing activities(805 )(2,079 )(9,704 )FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON
CASH AND CASH EQUIVALENTS(647 )

152(7,805 )(9,260 )3,963(111,568 )

87

290

1,055

139,790

135,536

1,684,224¥ 130,618¥ 139,790$ 1,573,711

NET (DECREASE) INCREASE IN CASH AND CASH
EQUIVALENTS
INCREASE IN CASH AND CASH EQUIVALENTS FROMNEWLY CONSOLIDATED SUBSIDIARYCASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR

(10,919 )(117 )(1,126 )See notes to consolidated financial statements.

-7-

20

C H I YO DA CORPORATION ANN UAL REPOR T 2011

(Continued)-8-(Concluded)

C H I YODA CORPORATION ANNUAL REPOR T 2011 21

Investments in two associated companies are accounted for by the equity method in 2011 and 2010.
Investments in the remaining unconsolidated subsidiaries and associated companies are stated at cost. If theequity method of accounting had been applied to the investments in these companies, the effect on theaccompanying consolidated financial statements would not be material.

Notes to Consolidated Financial Statements

The excess of the cost of the Company's investments in consolidated subsidiaries and associated companies
over the fair value of the net assets of the acquired subsidiary at the date of acquisition is being amortized overa period of 20 years.

Years Ended March 31, 2011 and 2010

Chiyoda Corporation and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
Years Ended March 31, 2011 and 20101.

All significant intercompany balances and transactions have been eliminated in consolidation. All material
unrealized profit included in assets resulting from transactions within the Group is eliminated.
b.

BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared in accordance with the provisions set forthin the Japanese Financial Instruments and Exchange Act and its related accounting regulations and in conformity
with accounting principles generally accepted in Japan ("Japanese GAAP"), which are different in certain respects
as to application and disclosure requirements of International Financial Reporting Standards.
Under Japanese GAAP, a consolidated statement of comprehensive income is required from the fiscal year ended
March 31, 2011 and has been presented herein. Accordingly, accumulated other comprehensive income is presented
in the consolidated balance sheet and the consolidated statement of changes in equity. Information with respect toother comprehensive income for the year ended March 31, 2010 is disclosed in Note 18. In addition, "net income
before minority interests" is disclosed in the consolidated statement of income from the year ended March 31, 2011.

Concerning the construction contracts, the Group applies the accounting methods below:
Unbilled costs on contracts which are accounted for by the completed-contract method are stated as costs ofconstruction contracts in process.

In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to
the consolidated financial statements issued domestically in order to present them in a form which is more familiar
to readers outside Japan. In addition, certain reclassifications and rearrangements have been made in the 2010
financial statements in order for them to conform to the classifications and presentations used in 2011.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which Chiyoda
Corporation (the "Company") is incorporated and principally operates. The translations of Japanese yen amounts
into U.S. dollar amounts are included solely for the convenience of readers outside Japan and have been made at therate of ¥83 to $1, the approximate rate of exchange at March 31, 2011. Such translations should not be construed as
representations that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate.
Japanese yen figures less than a million yen are rounded down to the nearest million yen, except for per share data.
U.S. dollar figures less than a thousand U.S. dollars are rounded down to the nearest thousand U.S. dollars, except
for per share data.
2.

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa.

Consolidation—The consolidated financial statements for the year ended March 31, 2011 include the accountsof the Company and its 20 significant (19 in 2010) subsidiaries (together, the "Group").
Under the control or influence concept, those companies in which the Company, directly or indirectly, is able
to exercise control over operations are fully consolidated, and those companies over which the Group has theability to exercise significant influence are accounted for by the equity method.
Investments in two associated companies are accounted for by the equity method in 2011 and 2010.
Investments in the remaining unconsolidated subsidiaries and associated companies are stated at cost. If theequity method of accounting had been applied to the investments in these companies, the effect on theaccompanying consolidated financial statements would not be material.

Payments received in excess of costs and estimated earnings on contracts which are accounted for by thepercentage-of-completion method and payments received on the other contracts are presented as current
liabilities.
Costs of preparation work for unsuccessful proposals and other projects which are not realized are charged
to income and are included in costs of revenue.
c.

Cash Equivalents—Cash equivalents are short-term investments that are readily convertible into cash and thatare exposed to insignificant risk of changes in value. Cash equivalents include time deposits and certificate ofdeposits both of which mature or become due within three months of the date of acquisition.

d.

Short-Term Investments—Short-term investments are time deposits which will mature three months after thedate of acquisition. Short-term investments are exposed to insignificant risk of changes in value.

e.

Investment Securities—All marketable securities are classified as available-for-sale securities and are reported
at fair value, with unrealized gains and losses, net of applicable taxes, reported in a separate component ofequity. The cost of securities sold is determined based on the moving-average method.
Non-marketable available-for-sale securities are stated at cost determined by the moving-average method. For
other than temporary declines in fair value, non-marketable securities are reduced to net realizable value by acharge to income.

f.

Allowance for Doubtful Accounts—The allowance for doubtful accounts is stated in amounts considered to beappropriate based on the Group's past credit loss experience and an evaluation of potential losses in thereceivables outstanding.

g.

Property, Plant and Equipment—Property, plant and equipment are stated at cost. Depreciation is computedby the declining-balance method, except for buildings owned by the Company which are depreciated using thestraight-line method, at rates based on the estimated useful lives of the assets. The range of useful lives is from
3 to 57 years for buildings and structures, from -410
to -17 years for machinery and equipment, and from 2 to
15 years for tools, furniture and fixtures. Equipment held for lease is depreciated by the straight-line method
over the respective lease periods.

The excess of the cost of the Company's investments in consolidated subsidiaries and associated companies
over the fair value of the net assets of the acquired subsidiary at the date of acquisition is being amortized overa period of 20 years.
All significant intercompany balances and transactions have been eliminated in consolidation. All material
unrealized profit included in assets resulting from transactions within the Group is eliminated.
Construction Contracts—In December 2007, the Accounting Standards Board of Japan (the "ASBJ") issued
ASBJ Statement No. 15, "Accounting Standard for Construction Contracts" and ASBJ Guidance No. 18,"Guidance on Accounting Standard for Construction- 9 - Contracts." Under this accounting standard, theconstruction revenue and construction costs should be recognized by the percentage-of-completion method, if
the outcome of a construction contract can be estimated reliably. When total construction revenue, total
construction costs and the stage of completion of the contract at the balance sheet date can be reliably
measured, the outcome of a construction contract can be estimated reliably. If the outcome of a construction
contract cannot be reliably estimated, the completed-contract method should be applied. When it is probablethat the total construction costs will exceed total construction revenue, an estimated loss on the contract shouldbe immediately recognized by providing for a loss on construction contracts. This standard is applicable toconstruction contracts and software development contracts and was effective for fiscal years beginning on orafterANN
April
2009.
The Group applied the accounting standard effective April 1, 2009.
22 C H I YO DA CORPORATION
UAL1,
REPOR
T 2011As the office integration plan was resolved at the board meeting, the Company and two consolidated
subsidiaries have shortened the range of useful lives for those properties which are expected to be retired. The
effect of this change was to decrease operating income by ¥330 million ($3,981 thousand) and income before
income taxes and minority interests by ¥3,063 million ($36,907 thousand).

b.

Concerning the construction contracts, the Group applies the accounting methods below:

Construction Contracts—In December 2007, the Accounting Standards Board of Japan (the "ASBJ") issued
ASBJ Statement No. 15, "Accounting Standard for Construction Contracts" and ASBJ Guidance No. 18,"Guidance on Accounting Standard for Construction Contracts." Under this accounting standard, theconstruction revenue and construction costs should be recognized by the percentage-of-completion method, if
the outcome of a construction contract can be estimated reliably. When total construction revenue, total
construction costs and the stage of completion of the contract at the balance sheet date can be reliably
measured, the outcome of a construction contract can be estimated reliably. If the outcome of a construction
contract cannot be reliably estimated, the completed-contract method should be applied. When it is probablethat the total construction costs will exceed total construction revenue, an estimated loss on the contract shouldbe immediately recognized by providing for a loss on construction contracts. This standard is applicable toconstruction contracts and software development contracts and was effective for fiscal years beginning on orafter April 1, 2009. The Group applied the accounting standard effective April 1, 2009.

h.

Long-Lived Assets—The Group reviews its long-lived assets for impairment whenever events or changes incircumstances indicate the carrying amount of an asset or asset group may not be recoverable.
An impairment loss would be recognized if the carrying amount of an asset or asset group exceeds the sum of
the undiscounted future cash flows expected to result from the continued use and eventual disposition of theasset or asset group. The impairment loss would be measured as the amount by which the carrying amount of
the asset exceeds its recoverable amount, which is the higher of the discounted cash flows from the continued
use and eventual disposition of the asset or the net selling price at disposition.

i.

C H I YODA CORPORATION ANNUAL REPOR T 2011 23

Other Assets—Intangible assets are carried at cost less accumulated amortization, which is calculated by thestraight-line method over their estimated useful lives. Software for internal use is amortized on a straight-line

f.

Allowance for Doubtful Accounts—The allowance for doubtful accounts is stated in amounts considered to beappropriate based on the Group's past credit loss experience and an evaluation of potential losses in thereceivables outstanding.

auditors under the resolution of shareholders meeting and board meeting. The outstanding balance ofretirement benefit allowance for directors, officers and corporate auditors of the Company was reclassified to
non-current liabilities—other liabilities in the years ended March 31, 2011 and 2010, respectively.

g.

Property, Plant and Equipment—Property, plant and equipment are stated at cost. Depreciation is computedby the declining-balance method, except for buildings owned by the Company which are depreciated using thestraight-line method, at rates based on the estimated useful lives of the assets. The range of useful lives is from
3 to 57 years for buildings and structures, from 4 to 17 years for machinery and equipment, and from 2 to
15 years for tools, furniture and fixtures. Equipment held for lease is depreciated by the straight-line method
over the respective lease periods.

Certain of Company's consolidated subsidiaries terminated its unfunded retirement benefit allowance for all
directors and officers under the resolution of shareholders meeting and board meeting during the year ended
March 31, 2011. The outstanding balance was reclassified to non-current liabilities—other liabilities in theyear ended March 31, 2011.

As the office integration plan was resolved at the board meeting, the Company and two consolidated
subsidiaries have shortened the range of useful lives for those properties which are expected to be retired. The
effect of this change was to decrease operating income by ¥330 million ($3,981 thousand) and income before
income taxes and minority interests by ¥3,063 million ($36,907 thousand).

Retirement benefits to directors, officers and corporate auditors of the Company and certain consolidated
subsidiaries are provided at the amount when the retirement benefit allowance was terminated.
n.

Research and Development Costs—Research and development costs are charged to income as incurred.

o.

Long-Lived Assets—The Group reviews its long-lived assets for impairment whenever events or changes incircumstances indicate the carrying amount of an asset or asset group may not be recoverable.

Leases—In March 2007, the ASBJ issued ASBJ Statement No. 13, "Accounting Standard for Lease
Transactions," which revised the previous accounting standard for lease transactions issued in June 1993. The
revised accounting standard for lease transactions was effective for fiscal years beginning on or after April 1,
2008.

An impairment loss would be recognized if the carrying amount of an asset or asset group exceeds the sum of
the undiscounted future cash flows expected to result from the continued use and eventual disposition of theasset or asset group. The impairment loss would be measured as the amount by which the carrying amount of
the asset exceeds its recoverable amount, which is the higher of the discounted cash flows from the continued
use and eventual disposition of the asset or the net selling price at disposition.

Under the previous accounting standard, finance leases that were deemed to transfer ownership of the leased
property to the lessee were capitalized. However, other finance leases were permitted to be accounted for as
operating lease transactions if certain "as if capitalized" information was disclosed in the note to the lessee's
financial statements. The revised accounting standard requires that all finance lease transactions be capitalized
to recognize lease assets and lease obligations in the balance sheet.

i.

Other Assets—Intangible assets are carried at cost less accumulated amortization, which is calculated by thestraight-line method over their estimated useful lives. Software for internal use is amortized on a straight-line
basis over its estimated useful life (five years at the maximum).

The Group applied the revised accounting standard effective April 1, 2008. In addition, the Group accounted
for leases which existed at the transition date and do not transfer ownership of the leased property to the lessee
as operating lease transactions.

j.

Allowance for Warranty Costs for Completed Work—The allowance for warranty costs for completed work isprovided based on past rate experience.

All other leases are accounted for as operating leases.

h.

k.

Allowance for Losses on Construction Contracts—The allowance for losses on construction contracts isprovided for an estimated amount of probable losses to be incurred in future years in respect of construction
projects in progress. When there are losses on completed-contract method applied contract, the allowance forlosses on construction contracts on the balance sheet is the net amount of costs of construction contracts inprocess on the same contract.

l.

Provision for Treatment of PCB Waste—Provision for treatment of PCB (Poly Chlorinated Biphenyl) waste isprovided based on estimated costs of the treatment for PCB products and equipment as well as their collection
and transportation fees.

p.

The Company files a tax return under the consolidated corporate-tax system which allows companies to basetax payments on the combined profits or losses of the parent company and its wholly owned domestic
subsidiaries.
q.

m. Retirement Benefits—Employees of the Company are, under most circumstances, entitled to payments fromthe defined contribution pension plan and the defined benefit corporate pension plan. Employees of certain of
the Company's consolidated subsidiaries are, under most circumstances, entitled to certain lump-sum
severance payments and pension payments.
Effective April 1, 2000, the Company and its domestic consolidated subsidiaries adopted a new accounting
standard for employees' retirement benefits and accounted for the liability for retirement benefits based on the
projected benefit obligations and plan assets at the balance sheet date.
The transitional obligation of ¥5,696 million ($68,630 thousand) is being amortized and charged to income
over 15 years using the straight-line amortization method and presented as an operating expense in the
consolidated statements of income for the years ended March 31, 2011 and 2010.
- 11 The Company terminated its unfunded retirement benefit allowance for all directors, officers and corporate
auditors under the resolution of shareholders meeting and board meeting. The outstanding balance ofretirement benefit allowance for directors, officers and corporate auditors of the Company was reclassified to
non-current liabilities—other liabilities in the years ended March 31, 2011 and 2010, respectively.
Certain of Company's consolidated subsidiaries terminated its unfunded retirement benefit allowance for all
directors and officers under the resolution of shareholders meeting and board meeting during the year ended
March 31, 2011. The outstanding balance was reclassified to non-current liabilities—other liabilities in theyear ended March 31, 2011.
Retirement benefits to directors, officers and corporate auditors of the Company and certain consolidated
subsidiaries are provided at the amount when the retirement benefit allowance was terminated.
n.

Research and Development Costs—Research and development costs are charged to income as incurred.

o.

Leases—In March 2007, the ASBJ issued ASBJ Statement No. 13, "Accounting Standard for Lease
Transactions," which revised the previous accounting standard for lease transactions issued in June 1993. The
revised accounting standard for lease transactions was effective for fiscal years beginning on or after April 1,
2008.

Under the previous accounting standard, finance leases that were deemed to transfer ownership of the leased
property to the lessee were capitalized. However, other finance leases were permitted to be accounted for as
24 C H I YO DA CORPORATION
ANN UAL
REPOR
T 2011
operatingleasetransactions
if certain "as if capitalized" information was disclosed in the note to the lessee's
financial statements. The revised accounting standard requires that all finance lease transactions be capitalized
to recognize lease assets and lease obligations in the balance sheet.

Income Taxes—The provision for income taxes is computed based on the pretax income included in the
consolidated statements of income. The asset and liability approach is used to recognize deferred tax assets andliabilities for the expected future tax consequences of temporary differences between the carrying amounts andthe tax bases of assets and liabilities. Deferred taxes are measured by applying currently enacted tax laws to
the temporary differences.

Foreign Currency Transactions—All short-term and long-term monetary receivables and payables
denominated in foreign currencies are translated into Japanese yen at the exchange rates at the balance sheet
date.
- 12 - are recognized in the income statement to the extent
The foreign exchange gains and losses from translationthat they are not hedged by foreign currency forward contracts.

r.

Foreign Currency Financial Statements—The balance sheet accounts of the consolidated foreign subsidiaries
are translated into Japanese yen at the current exchange rate as of the balance sheet date except for equity,which is translated at the historical rate. Differences arising from such translation were shown as "Foreign
currency translation adjustments" under accumulated other comprehensive income in a separate component ofequity.
Revenue and expense accounts of consolidated foreign subsidiaries are translated into Japanese yen at thecurrent exchange rate as of the balance sheet date.

s.

Asset Retirement Obligations—In March 2008, the ASBJ published the accounting standard for asset
retirement obligations, ASBJ Statement No. 18, "Accounting Standard for Asset Retirement Obligations" andASBJ Guidance No. 21, "Guidance on Accounting Standard for Asset Retirement Obligations." Under thisaccounting standard, an asset retirement obligation is defined as a legal obligation imposed either by law orcontract that results from the acquisition, construction, development and the normal operation of a tangible
fixed asset and is associated with the retirement of such tangible fixed asset. The asset retirement obligation isrecognized as the sum of the discounted cash flows required for the future asset retirement and is recorded in
the period in which the obligation is incurred if a reasonable estimate can be made. If a reasonable estimate of
the asset retirement obligation cannot be made in the period the asset retirement obligation is incurred, theliability should be recognized when a reasonable estimate of asset retirement obligation can be made. Upon
initial recognition of a liability for an asset retirement obligation, an asset retirement cost is capitalized byincreasing the carrying amount of the related fixed asset by the amount of the liability. The asset retirement
cost is subsequently allocated to expense through depreciation over the remaining useful life of the asset. Overtime, the liability is accreted to its present value each period. Any subsequent revisions to the timing or theamount of the original estimate of undiscounted cash flows are reflected as an increase or a decrease in the
carrying amount of the liability and the capitalized amount of the related asset retirement cost. This standard
was effective for fiscal years beginning on or after April 1, 2010.
The Company applied this accounting standard effective April 1, 2010. The effect of this change was todecrease operating income by ¥10 million ($131 thousand) and income before income taxes and minority
interests by ¥156 million ($1,891 thousand).

C H I YODA CORPORATION ANNUAL REPOR T 2011 25

ASBJ Guidance No. 21, "Guidance on Accounting Standard for Asset Retirement Obligations." Under thisaccounting standard, an asset retirement obligation is defined as a legal obligation imposed either by law orcontract that results from the acquisition, construction, development and the normal operation of a tangible
fixed asset and is associated with the retirement of such tangible fixed asset. The asset retirement obligation isrecognized as the sum of the discounted cash flows required for the future asset retirement and is recorded in
the period in which the obligation is incurred if a reasonable estimate can be made. If a reasonable estimate of
the asset retirement obligation cannot be made in the period the asset retirement obligation is incurred, theliability should be recognized when a reasonable estimate of asset retirement obligation can be made. Upon
initial recognition of a liability for an asset retirement obligation, an asset retirement cost is capitalized byincreasing the carrying amount of the related fixed asset by the amount of the liability. The asset retirement
cost is subsequently allocated to expense through depreciation over the remaining useful life of the asset. Overtime, the liability is accreted to its present value each period. Any subsequent revisions to the timing or theamount of the original estimate of undiscounted cash flows are reflected as an increase or a decrease in the
carrying amount of the liability and the capitalized amount of the related asset retirement cost. This standard
was effective for fiscal years beginning on or after April 1, 2010.

(2) Changes in presentations
When the presentation of financial statements is changed, prior period financial statements arereclassified in accordance with the new presentation.
(3) Changes in accounting estimates

The Company applied this accounting standard effective April 1, 2010. The effect of this change was todecrease operating income by ¥10 million ($131 thousand) and income before income taxes and minority
interests by ¥156 million ($1,891 thousand).
t.

A change in an accounting estimate is accounted for in the period of the change if the change affects that
period only, and is accounted for prospectively if the change affects both the period of the change andfuture periods.

Derivatives and Hedging Activities—The Company uses a variety of derivative financial instruments,
including foreign currency forward contracts and interest swap contracts as a means of hedging exposure toforeign currency risks and interest rate risks. The Company does not enter into derivatives for trading or
speculative purposes.

(4) Corrections of prior period errors
When an error in prior period financial statements is discovered, those statements are restated.

Derivative financial instruments and foreign currency transactions are classified and accounted for as follows:(1) All derivatives are recognized as either assets or liabilities and measured at fair value, with gains or losses
recognized in the income statement.
(2) For derivatives used for hedging purposes, if derivatives qualify for hedge accounting because of high- 13 correlation and effectiveness between the hedging instruments and the hedged items, gains or losses onderivatives are deferred until maturity of the hedged transactions.

This accounting standard and the guidance are applicable to accounting changes and corrections of priorperiod errors which are made from the beginning of the fiscal year that begins on or after April 1, 2011.
3.

Significant transactions with and balances due from/(to) unconsolidated subsidiaries and associated companies are
summarized as follows:

The foreign currency forward contracts are utilized to hedge foreign exchange risks. Certain assets andliabilities on construction contracts denominated in foreign currencies are translated at the contracted rates if
the forward contracts qualify for hedge accounting.

Transactions for the Year Ended March 31

Revenue
Cost of revenue
Selling, general and administrative expenses

Per Share Information—Basic net income per share is computed by dividing net income available to commonshareholders by the weighted-average number of common shares outstanding for the period, retroactively
adjusted for stock splits.

Notes and accounts receivable—trade
Accounts receivable—otherNotes and accounts payable—trade
Accrued expenses and other

New Accounting Pronouncements

4.

(4) Corrections of prior period errors

Net5.

- 14 -

73(12,282 )(1,290 )Thousands of
U.S. Dollars
2011
$

1
402
(154 )(117 )

CONSTRUCTION CONTRACTS

Costs and estimated earnings
Amounts billed

When the presentation of financial statements is changed, prior period financial statements arereclassified in accordance with the new presentation.

C H I YO DA CORPORATION ANN UAL REPOR T 2011

$

¥ 2
2
(84 )
(14 )

¥ 33
(12 )
(9 )

Thousands of
U.S. Dollars
2011

Millions of Yen
2011
2010

(2) Changes in presentations

26

3(2,288 )(271 )

Costs and estimated earnings recognized with respect to construction contracts which are accounted for by thepercentage-of-completion method at March 31, 2011 and 2010, were as follows:

When a new accounting policy is applied with revision of accounting standards, a new policy is applied
retrospectively unless the revised accounting standards include specific transitional provisions. When therevised accounting standards include specific transitional provisions, an entity shall comply with thespecific transitional provisions.

A change in an accounting estimate is accounted for in the period of the change if the change affects that
period only, and is accounted for prospectively if the change affects both the period of the change andfuture periods.

¥

The Company guaranteed the indebtedness of a certain unconsolidated subsidiary in the amount of ¥2,088 million($25,164 thousand) and ¥2,586 million at March 31, 2011 and 2010, respectively.

(1) Changes in accounting policies(3) Changes in accounting estimates

6(1,019 )(107 )

Millions of Yen
2011
2010

Cash dividends per share presented in the accompanying consolidated statements of income are dividends
applicable to the respective years including dividends to be paid after the end of the year.

Accounting Changes and Error Corrections—In December 2009, the ASBJ issued ASBJ Statement No. 24,"Accounting Standard for Accounting Changes and Error Corrections" and ASBJ Guidance No. 24, "Guidanceon Accounting Standard for Accounting Changes and Error Corrections." Accounting treatments under thisstandard and guidance are as follows:¥

Balances at March 31

Diluted net income per share reflects the potential dilution that could occur if securities were exercised orconverted into common stock. Diluted net income per share of common stock assumes full conversion of theoutstanding convertible notes and bonds at the beginning of the year (or at the time of issuance) with anapplicable adjustment for related interest expense, net of tax, and full exercise of outstanding warrants.

v.

Thousands of
U.S. Dollars
2011

Millions of Yen
2011
2010

The interest rate swaps which qualify for hedge accounting and meet specific matching criteria are notremeasured at market value but the differential paid under the swap agreements are recognized and included ininterest expenses.
u.

TRANSACTIONS WITH UNCONSOLIDATED SUBSIDIARIES AND ASSOCIATED COMPANIES- 15 -¥ 286,840(272,346 )¥ 563,887(552,432 )$ 3,455,911(3,281,285 )

¥

¥

$

14,493

11,454

174,626

INVESTMENT SECURITIESInvestment securities at March 31, 2011 and 2010, consisted of the following:
Millions of Yen
2011
2010

Thousands of
U.S. Dollars
2011

C H I YODA CORPORATION ANNUAL REPOR T 2011 27

4.

CONSTRUCTION CONTRACTS
Costs and estimated earnings recognized with respect to construction contracts which are accounted for by thepercentage-of-completion method at March 31, 2011 and 2010, were as follows:
Thousands of
U.S. Dollars
2011

Millions of Yen
2011
2010

5.

Available-for-sale securities whose fair value was not readily determinable at March 31, 2010, were as follows. The
similar information for 2011 is disclosed in Note 15.

Costs and estimated earnings
Amounts billed¥ 286,840(272,346 )¥ 563,887(552,432 )$ 3,455,911(3,281,285 )March 31, 2010

Net

¥

¥

$

Available-for-sale—Equity securities

14,493

11,454

174,626

INVESTMENT SECURITIES

6.

Investment securities at March 31, 2011 and 2010, consisted of the following:

Non-current—Equity securities¥ 5,813¥ 5,153$ 70,037

March 31, 2011

Securities classified asavailable-for-sale—Equity securities¥ 4,371

Millions of Yen
Unrealized
Unrealized
Gains
Losses¥ 480

INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED SUBSIDIARIES AND ASSOCIATEDCOMPANIES

Millions of Yen
2011
2010

The costs and aggregate fair values of investment securities at March 31, 2011 and 2010, were as follows:Cost¥ 1,644

Investments in and advances to unconsolidated subsidiaries and associated companies at March 31, 2011 and 2010,
were as follows:

Thousands of
U.S. Dollars
2011

Millions of Yen
2011
2010

Carrying AmountMillions of Yen

¥ 683

Fair
Value

7.

Investments
Long-term receivables¥ 2,69211¥ 2,70212$ 32,443
138

Total

¥ 2,704¥ 2,714$ 32,581

LONG-TERM DEBT
Long-term debt at March 31, 2011 and 2010, consisted of the following:¥ 4,168

Millions of Yen
2011
2010

March 31, 2010

Cost
Securities classified asavailable-for-sale—Equity securities¥ 3,377

Millions of Yen
Unrealized
Unrealized
Gains
Losses
¥ 507

¥ 375

Fair
Value
¥ 3,508

March 31, 2011

Cost
Securities classified asavailable-for-sale—Equity securities$ 52,667

Thousands of U.S. Dollars
Unrealized
Unrealized
Gains
Losses$ 5,786$ 8,232

Fair
Value$ 50,220

Carrying AmountMillions of Yen- 16 -

Available-for-sale—Equity securities
6.

INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED SUBSIDIARIES AND ASSOCIATEDCOMPANIES

Investments
Long-term receivables
28

Total ANN UAL REPOR T 2011
C H I YO DA CORPORATION
7.

LONG-TERM DEBT

¥ 2,69211¥ 2,70212$ 32,443
138¥ 2,704¥ 2,714$ 32,581

Long-term debt, less current portion¥ 10,220¥4
10,00035
10,039(17 )$ 122,990
318
123,308(167 )¥ 10,022$ 123,140

Year Ending
March 31

Millions of Yen

Thousands of
U.S. Dollars

2013
2014

¥ 10,000
208$ 120,481
2,508

Total

¥ 10,208$ 122,990

Millions of Yen

Thousands of
U.S. Dollars¥ 15,000$ 180,722¥ 15,000$ 180,722

Commitment-line contracts

Investments in and advances to unconsolidated subsidiaries and associated companies at March 31, 2011 and 2010,
were as follows:
Thousands of
U.S. Dollars
2011¥ 10,208
26
10,234(13 )Commitment-line contracts at March 31, 2011, were as follows:¥ 1,644

Millions of Yen
2011
2010

Long-term loans principally from banks, due seriallythrough 2013, with interest rates ranging from
1.9% to 2.0% at 2011, and 2.4% to 5.7% at 2010:
Collateralized
Unsecured
Obligations under finance lease
Total
Less current portion

Thousands of
U.S. Dollars
2011

Annual maturities of long-term debt, excluding finance leases (see Note 14), at March 31, 2011, were as follows:

Available-for-sale securities whose fair value was not readily determinable at March 31, 2010, were as follows. The
similar information for 2011 is disclosed in Note 15.
March 31, 2010

Thousands of
U.S. Dollars
2011

Unused commitments8.

- 17 -RETIREMENT BENEFITS
Employees of the Company are, under most circumstances, entitled to payments from the defined contribution
pension plan and the defined benefit corporate pension plan upon retirement or termination.
Employees of certain of the Company's consolidated subsidiaries are, under most circumstances, entitled to certain
lump-sum severance payments and pension payments upon retirement or termination.

C H I YODA CORPORATION ANNUAL REPOR T 2011 29

As discussed in Note 2.m, the outstanding balance of the retirement benefit allowance for directors and officers ofcertain of Company's consolidated subsidiaries amounting to ¥241 million ($2,910 thousand) at March 31, 2011,

Amortization of prior service cost
Subtotal
Payment to defined contribution pension trust
Net periodic benefit costs

Millions of Yen

Thousands of
U.S. Dollars

Commitment-line contracts¥ 15,000$ 180,722

Unused commitments¥ 15,000$ 180,722

RETIREMENT BENEFITS

9.

¥ 2,385¥ 2,365$ 28,744

2011

2010

1.5%
1.6%
10 years
15 years
10 years

1.5%
1.6%
10 years
15 years
10 years

EQUITY

Employees of the Company are, under most circumstances, entitled to payments from the defined contribution
pension plan and the defined benefit corporate pension plan upon retirement or termination.

Japanese companies are subject to the Companies Act of Japan (the "Companies Act"). The significant provisions in
the Companies Act that affect financial and accounting matters are summarized below:

Employees of certain of the Company's consolidated subsidiaries are, under most circumstances, entitled to certain
lump-sum severance payments and pension payments upon retirement or termination.

a.

Millions of Yen
2011
2010

The Companies Act permits companies to distribute dividends-in-kind (non-cash assets) to shareholders
subject to a certain limitation and additional requirements.

Thousands of
U.S. Dollars
2011

Projected benefit obligation
Fair value of plan assets
Unrecognized transitional obligation
Unrecognized actuarial loss
Unrecognized prior service cost

¥ 25,241(17,818 )(2,435 )(3,030 )851¥ 26,403(18,886 )(3,044 )(3,395 )1,028$ 304,111(214,675 )(29,341 )(36,514 )
10,264

Net liability for employees' retirement benefits

¥

¥

$

2,809

2,105

Semiannual interim dividends may also be paid once a year upon resolution by the Board of Directors if thearticles of incorporation of the company so stipulate. The Companies Act provides certain limitations on theamounts available for dividends or the purchase of treasury stock. The limitation is defined as the amountavailable for distribution to the shareholders, but the amount of net assets after dividends must be maintained
at no less than ¥3 million.
b.

Increases/Decreases and Transfer of Common Stock, Reserve and Surplusc.

The Companies Act requires that an amount equal to 10% of dividends must be appropriated as a legal reserve(a component of retained earnings) or as additional paid-in capital (a component of capital surplus) dependingon the equity account charged upon the payment of such dividends until the total of aggregate amount of legal
reserve and additional paid-in capital equals 25% of the common stock. Under the Companies Act, the total
amount of additional paid-in capital and legal reserve may be reversed without limitation. The Companies Act
also provides that common stock, legal reserve, additional paid-in capital, other capital surplus and retained
earnings can be transferred among the accounts under certain conditions upon resolution of the shareholders.
- 19 Treasury Stock and Treasury Stock Acquisition Rights

33,843The components of net periodic benefit costs for the years ended March 31, 2011 and 2010, were as follows:
Millions of Yen
2011
2010
Service cost
Interest cost
Expected return on plan assets
Amortization of transitional obligation
Recognized actuarial loss
Amortization of prior service cost
Subtotal
Payment to defined contribution pension trust

¥

846
364
(288 )
608
739(176 )
2,094
291

Net periodic benefit costs¥ 2,385¥

Thousands of
U.S. Dollars
2011

736
369
(265 )
608
845(176 )
2,119
246$ 10,197
4,388(3,472 )
7,335
8,908
(2,123 )25,233
3,511¥ 2,365$ 28,744

Discount rate
Expected rate of return on plan assets
Recognition period of actuarial gain/loss
Amortization period of transitional obligation
Amortization period of prior service cost

The Companies Act also provides for companies to purchase treasury stock and dispose of such treasury stockby resolution of the Board of Directors. The amount of treasury stock purchased cannot exceed the amountavailable for distribution to the shareholders which is determined by specific formula.
Under the Companies Act, stock acquisition rights are presented as a separate component of equity.
The Companies Act also provides that companies can purchase both treasury stock acquisition rights andtreasury stock. Such treasury stock acquisition rights are presented as a separate component of equity or
deducted directly from stock acquisition rights.
10.

STOCK OPTIONSThere were no stock options outstanding as of March 31, 2011.

Assumptions used for the years ended March 31, 2011 and 2010, are set forth as follows:- 18 -

Dividends
Under the Companies Act, companies can pay dividends at any time during the fiscal year in addition to theyear-end dividend upon resolution at the shareholders meeting. For companies that meet certain criteria, theBoard of Directors may declare dividends (except for dividends in kind) at any time during the fiscal year if
the company has prescribed so in its articles of incorporation. However, the Company cannot do so because it
does not meet all the above criteria. The Company is organized as a company with board committees.

The liability for employees' retirement benefits at March 31, 2011 and 2010, consisted of the following:

2011

2010

1.5%
1.6%
10 years
15 years
10 years

1.5%
1.6%
10 years
15 years
10 years

EQUITYThe stock option outstanding as of March 31, 2010 and its activity were as follows:
Stock
OptionPersons
GrantedNumber of
Options Granted

Date ofGrant

2002 Stock
Option8 directors
8 officers
623 employees

7,896,000 shares

July 12, 2002a.

Exercise Period¥232 From July 1, 2004
( $2.79 )to June 30, 2009

2002 Stock Option(Shares)

Dividends

VestedUnder the Companies Act, companies can pay dividends at any time during the fiscal year in addition to the

March 31, 2009—OutstandingC H I YO DA CORPORATION ANN UAL REPOR T 2011

Exercise
Price

Year Ended March 31, 2010

Japanese companies are subject to the Companies Act of Japan (the "Companies Act"). The significant provisions in
the Companies Act that affect financial and accounting matters are summarized below:
30(2,123 )25,233
3,511

Discount rate
Expected rate of return on plan assets
Recognition period of actuarial gain/loss
Amortization period of transitional obligation
Amortization period of prior service cost

As discussed in Note 2.m, the outstanding balance of the retirement benefit allowance for directors and officers ofcertain of Company's consolidated subsidiaries amounting to ¥241 million ($2,910 thousand) at March 31, 2011,
and the outstanding balance of the retirement benefit allowance for directors, officers and corporate auditors of theCompany amounting to ¥292 million at March 31, 2010, were reclassified to non-current liabilities—otherliabilities.

9.

(176 )
2,119
246

Assumptions used for the years ended March 31, 2011 and 2010, are set forth as follows:

Commitment-line contracts at March 31, 2011, were as follows:

8.

(176 )
2,094
291

C H I YODA CORPORATION ANNUAL REPOR T 2011 31

36,000OtherLess valuation allowancetreasury stock. Such treasury stock acquisition rights are presented as a separate component of equity or
deducted directly from stock acquisition rights.
10.

Total

STOCK OPTIONSThe stock option outstanding as of March 31, 2010 and its activity were as follows:
Persons
GrantedNumber of
Options Granted

Date ofGrant

2002 Stock
Option8 directors
8 officers
623 employees

7,896,000 shares

July 12, 2002

ExercisePrice

Net deferred tax assets¥232 From July 1, 2004
( $2.79 )to June 30, 2009

March 31, 2009—Outstanding
Exercised
Lapse
March 31, 2010—Outstanding

36,000(32,000)(4,000)Exercise price
Average stock price at exercise
Fair value price at grant date

¥232
¥768

Deferred tax assets—current assets
Deferred tax assets—investments and other assets
Other liabilities—non-current liabilities

The Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, in theaggregate, resulted in a normal effective statutory tax rate of approximately 41% for the years ended March 31,
2011 and 2010.
The tax effects of significant temporary differences which resulted in deferred tax assets and liabilities at March 31,- 20 2011 and 2010, were as follows:
Millions of Yen
2011
2010

Total
Deferred tax liabilities:
Profit/loss in joint venture
Other
Total
Net deferred tax assets¥ 13,528
1,246
1,715
1,780

Thousands of
U.S. Dollars
2011

12.

$ 203,571
18,407

13.

836
2,966
(874 )

22,967
9,156
13,461
41,855(8,964 )24,937

21,199300,454

1,917
431

3,785
145

23,098
5,196

2,348

3,931

28,295¥ 22,589¥ 17,268$ 272,159

Net deferred tax assets as of March 31, 2011 and 2010 were recorded in the accompanying consolidated balance
sheets as follows:
Millions of Yen
2011
2010
Deferred tax assets—current assets
Deferred tax assets—investments and other assets
Other liabilities—non-current liabilities32¥ 18,644
3,948
(3 )

300,454

1,917
431

3,785
145

23,098
5,196

2,348

3,931

28,295¥ 22,589¥ 17,268$ 272,159¥ 15,523
1,745

Thousands of
U.S. Dollars
2011$ 224,631
47,569(42 )Thousands of
U.S. Dollars
2011¥ 18,644
3,948
(3 )

¥ 15,523
1,745$ 224,631
47,569(42 )A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in theaccompanying consolidated statements of income for the years ended March 31, 2011 and 2010, is as follows:

INCOME TAXES

1,906
759
1,117
3,474
(744 )

21,199Millions of Yen
2011
2010

Vested¥ 16,896
1,527

24,937

Net deferred tax assets as of March 31, 2011 and 2010 were recorded in the accompanying consolidated balance
sheets as follows:

2002 Stock Option(Shares)

Deferred tax assets:
Cost of revenue
Allowance for employees' bonus
Allowance for warranty costs for completed works
Allowance for losses on construction contracts
Future deductable depreciation
Enterprise tax
Retirement benefits
Other
Less valuation allowance

41,855(8,964 )Total

Exercise Period

Year Ended March 31, 2010

11.

2,966
(874 )

Deferred tax liabilities:
Profit/loss in joint venture
Other

There were no stock options outstanding as of March 31, 2011.

Stock
Option3,474(744 )

2011

2010

Normal effective statutory tax rate
Expenses not deductible for income tax purposes
Non-taxable dividend income
Inhabitant taxes per capita levy
Tax credit
Equity in earnings of associated companies
Lower income tax rates applicable to subsidiaries
Lower tax basis of enterprise tax- 21 Profit/loss in joint venture

41 %
1
(1)

41 %
4
(8)
1
13
(1)
(6)
(7)

Actual effective tax rate

31 %

(5)

(6)

37 %

RESEARCH AND DEVELOPMENT COSTS
Research and development costs charged to income were ¥1,848 million ($22,271 thousand) and ¥1,741 million forthe years ended March 31, 2011 and 2010, respectively.
OFFICE INTEGRATION COSTS
The Company is planning to integrate its offices which have been located separately. The office integration costs of¥4,218 million ($50,827 thousand) have been expensed in the consolidated statements of income consistent with theoffice integration plan.
It consists of the following:

Non-recurring depreciation on non-current assets
and related expenses
Provision for cancellation of leases

Millions of Yen
2011

Thousands of
U.S. Dollars
2011¥ 3,673545$ 44,256
6,570

As discussed in Note 2.g, the Company and two consolidated subsidiaries have shortened the range of useful lives
consistent with the office integration plan.
14.

LEASESThe Group leases certain machinery, computer equipment and other assets.
Obligations under finance leases and future minimum payments under noncancelable operating leases for the years
ended March 31, 2011 and 2010 were as follows:Year Ended March 31, 2011
Millions of Yen
Finance Leases
On
Off
Operating
Balance Balance
LeasesC H I YO DA CORPORATION ANN UAL REPOR T 2011

Due within one year

¥ 13

¥ 53

¥

123

Thousands of U.S. Dollars
Finance Leases
On
Off
OperatingC H I YODA CORPORATION ANNUAL REPOR T 2011 33
Balance
Balance
Leases
$ 167

$

647

$

1,489

Obligations under finance leases and future minimum payments under noncancelable operating leases for the years
ended March 31, 2011 and 2010 were as follows:Year Ended March 31, 2010

Year Ended March 31, 2011
Millions of Yen
Finance Leases
On
Off
Operating
Balance Balance
LeasesThousands of U.S. Dollars
Finance Leases
On
Off
Operating
Balance
Balance
LeasesDue within one year
Due after one year

¥ 13
12

¥ 53
63

¥

123
1,298

$ 167
150

$

647
764

Total

¥ 26

¥ 117

¥ 1,421$ 318$ 1,412$

Buildings
andStructures

1,489
15,639$ 17,128

Millions of Yen
Tools,
Furnitureand Fixtures
Other

Total

Acquisition cost
Accumulated depreciation

¥ 67
19

¥ 388
254

¥ 77
51

¥ 533
325

Net leased property

¥ 48

¥ 134

¥ 25

¥ 207

Thousands of U.S. Dollars
Tools,
Furnitureand Fixtures
Other

Total

Year Ended March 31, 2011

Year Ended March 31, 2010
Millions of Yen
Finance Leases
On
Off
Operating
Balance
Balance
LeasesDue within one year
Due after one year

¥ 13
22

¥ 90
117

¥

Total

¥ 35

¥ 207

¥ 1,554

Buildings
andStructures

132
1,424

ASBJ Statement No. 13, "Accounting Standard for Lease Transactions" requires that all finance lease transactions
be capitalized to recognize lease assets and lease obligations in the balance sheet. However, ASBJ Statement No. 13
permits leases that do not transfer ownership of the leased property to the lessee and whose lease inception was
before March 31, 2008 to continue to be accounted for as operating lease transactions if certain "as if capitalized"
information is disclosed in the note to the financial statements. The Company applied ASBJ Statement No. 13
effective April 1, 2008 and continued to account for such leases as operating lease transactions.

$ 3,372
2,668

$ 873
667

$ 5,059
3,647

Net leased property

$ 501

$

$ 206

$ 1,412704

Millions of Yen
2011
2010

Pro forma information of leased property whose lease inception was before March 31, 2008 on an "as if capitalized"
basis was as follows:

Total

Acquisition cost
Accumulated depreciation

¥ 67
25

¥ 279
221

¥ 72
55

¥ 419
302

Net leased property

¥ 41

¥ 58

¥ 17

¥ 117

Thousands of
U.S. Dollars
2011

Due within one year
Due after one year

¥ 53
63

¥ 90
117

$

647
764

Total

¥ 117

¥ 207

$ 1,412

Depreciation expense as lessee, which is not reflected in the accompanying consolidated statements of income,computed by the straight-line method was ¥90 million ($1,090 thousand) and ¥111 million for the years ended
March 31, 2011 and 2010, respectively.

Year Ended March 31, 2011
Millions of Yen
Tools,
Furnitureand Fixtures
Other

$ 813
311

Obligations under finance leases for the years ended March 31, 2011 and 2010 were as follows:

Pro forma Information of Leased Property Whose Lease Inception Was before March 31, 2008

Buildings
andStructures

Acquisition cost
Accumulated depreciation

The amounts of obligations, acquisition cost and depreciation under finance leases include the imputed interest
income portion and interest expense portion, respectively.
15.

FINANCIAL INSTRUMENTS AND RELATED DISCLOSURESIn March 2008, the ASBJ revised ASBJ Statement No. 10, "Accounting Standard for Financial Instruments" andissued ASBJ Guidance No. 19, "Guidance on Accounting Standard for Financial Instruments and Related
Disclosures." This accounting standard and the guidance were applicable to financial instruments and related
disclosures at the end of the fiscal years ending on or after March 31, 2010. The Group applied the revised
accounting standard and the guidance effective March 31, 2010.
(1) Group Policy for Financial Instruments- 23 -The Group uses financial instruments for cash surpluses, if any, invested in low risk financial assets such as
certificate of deposits and deposits at call. For operating capital, the Group uses bank loans. Derivatives areused, not for speculative purposes, but to manage exposure to the market risk of fluctuation in foreign currency
exchange rates and interest rates.
(2) Nature and Extent of Risks Arising from Financial- 24 - Instruments

34

C H I YO DA CORPORATION ANN UAL REPOR T 2011

Receivables such as trade notes and trade accounts are exposed to customer credit risk. Although receivables
in foreign currencies are exposed to the market risk of fluctuation in foreign currencyCexchange
rates, the
H I YODA CORPORATION ANNUAL REPOR T 2011 35
position, net of payables in foreign currencies, is hedged by using foreign currency forward contracts.
Cash equivalents include certificates of deposit which mature shortly and are used for cash surpluses.

Foreign currency trade receivables and payables are exposed to market risk resulting from fluctuations inforeign currency exchange rates. Such foreign exchange risk is hedged principally with foreign currency
forward contracts.
Interest expense associated with long-term debts is exposed to market risk resulting from changes in interest
rates. Such risk is hedged by interest rate swap contracts.

(1) Group Policy for Financial Instruments
The Group uses financial instruments for cash surpluses, if any, invested in low risk financial assets such as
certificate of deposits and deposits at call. For operating capital, the Group uses bank loans. Derivatives areused, not for speculative purposes, but to manage exposure to the market risk of fluctuation in foreign currency
exchange rates and interest rates.
(2) Nature and Extent of Risks Arising from Financial Instruments
Receivables such as trade notes and trade accounts are exposed to customer credit risk. Although receivables
in foreign currencies are exposed to the market risk of fluctuation in foreign currency exchange rates, theposition, net of payables in foreign currencies, is hedged by using foreign currency forward contracts.
Cash equivalents include certificates of deposit which mature shortly and are used for cash surpluses.
Short-term investments include deposits at call which will mature three months after the date of acquisition.
Both certificates of deposit and deposits at call are exposed to default risk of the issuing financial institution.
Investment securities are equity securities related to the business which the Group operates. Marketablesecurities are exposed to the risk of fluctuations in stock prices.
Payment terms of payables, such as trade notes and trade accounts, are generally less than one year. Althoughpayables in foreign currencies are exposed to the market risk of fluctuation in foreign currency exchange rates,
those risks are netted against the balance of receivables denominated in the same foreign currency as noted
above.
Bank loans are used for operating capital. Although they are exposed to the market risks from changes ininterest rates, the risk is hedged by using interest rate swap contracts.

Foreign currency forward contracts are controlled under internal guidelines. The position related to particularconstruction contracts is identified and is reviewed monthly. Reconciliation of the transaction and balanceswith customers' confirmation reply is made, and the transactions related to foreign currency forward contracts
are executed and accounted for under internal guidelines.
Marketable investment securities are managed by monitoring market values and financial position of issuers
on a regular basis. The Group assesses the stock price risk quantitatively so as to account for significant
declines in stock market as impairment losses.
Liquidity risk management
Liquidity risk comprises the risk that the Group cannot meet its contractual obligations in full on maturity
dates. The Group manages its liquidity risk by holding adequate volumes of liquid assets along with timely
adequate financial planning.
(4) Fair Values of Financial Instruments
Fair values of financial instruments are based on quoted price in active markets. If quoted price is notavailable, other rational valuation techniques are used instead. Also please see Note 16 for the detail of fairvalue for derivatives.
(a) Fair values of financial instruments
March 31, 2011
Carrying
AmountMillions of Yen
Fair Value

Cash and cash equivalents
Short-term investments
Notes and accounts receivable
Costs and estimated earnings onlong-term construction contracts
Jointly controlled assets of joint venture
Investment securities¥ 130,618
79
41,539¥ 130,618
79
41,53914,493
88,662
4,168

14,493
88,662
4,168

Total

¥ 279,561¥ 279,561

Notes and accounts payable—trade
Income taxes payable
Long-term debt¥¥

Certificates of deposit and deposits at call are exposed to insignificant default risk because transactions arelimited to major financial institutions.

Total¥ 113,611

With respect to foreign currency forward contract, the Group limits the counterparty to those derivatives tomajor financial institutions who can bear losses arising from credit risk.

March 31, 2010

Derivatives are foreign currency forward contracts and interest rate swap contracts, which are entered to
manage exposure to market risks from changes in foreign currency exchange rates of receivables and payables,and from changes in interest rates, respectively. Please see Notes 2.t and 16 for more detail about derivatives.
(3) Risk Management for Financial Instruments
Credit risk management
Credit risk is the risk of economic loss arising from a counterparty's failure to repay or service debt according
to the contractual terms. The Group manages its credit risk from receivables on the basis of internal guidelines,
which include monitoring of payment term and balances of major customers to identify the default risk ofcustomers in early stage.

Market risk management (risk of foreign exchange and interest rates)
Foreign currency trade receivables and payables are exposed to market risk resulting from fluctuations inforeign currency exchange rates. Such foreign exchange risk is hedged principally with foreign currency
forward contracts.

- 26 -

97,417
5,986
10,208Carrying
Amount

97,417
5,986
10,208¥ 113,612

Millions of Yen
Fair Value

Cash and cash equivalents
Short-term investments
Notes and accounts receivable
Costs and estimated earnings onlong-term construction contracts
Jointly controlled assets of joint venture
Investment securities¥ 139,790
53
39,864¥ 139,790
53
39,864

11,454
69,917
3,508

11,454
69,917
3,508

Total

¥ 264,589¥ 264,589

Marketable investment securities are managed by monitoring market values and financial position of issuers
on a regular basis. The Group assesses the stock price risk quantitatively so as to account for significant
declines in stock market as impairment losses.

Notes and accounts payable—trade
Income taxes payable
Long-term debt¥¥

Liquidity risk management

Total¥ 104,202

Interest expense associated with long-term debts is exposed to market risk resulting from changes in interest
rates. Such risk is hedged by interest rate swap contracts.
Foreign currency forward contracts are controlled under internal guidelines. The position related to particularconstruction contracts is identified and is reviewed monthly. Reconciliation of the transaction and balanceswith customers' confirmation reply is made, and the transactions related to foreign currency forward contracts- 25 are executed and accounted for under internal guidelines.

Liquidity risk comprises the risk that the Group cannot meet its contractual obligations in full on maturity
dates. The Group manages its liquidity risk by holding adequate volumes of liquid assets along with timely
36 C H I YO DA CORPORATION
ANN UAL REPOR T 2011adequatefinancial planning.
(4) Fair Values of Financial Instruments

89,523
4,675
10,004

Unrealized
Gain (Loss)

Unrealized
Gain (Loss)

89,523
4,675
10,004¥ 104,202

March 31, 2011
C H I YODA CORPORATION ANNUAL REPOR T 2011 37

Carrying

Thousands of U.S. Dollars

UnrealizedCash and cash equivalents
Short-term investments
Notes and accounts receivable
Costs and estimated earnings onlong-term construction contracts
Jointly controlled assets of joint venture
Investment securities¥ 139,790
53
39,864¥ 139,790
53
39,864

11,454
69,917
3,508

11,454
69,917
3,508

Total

¥ 264,589¥ 264,589

Notes and accounts payable—trade
Income taxes payable
Long-term debt

¥

¥

Total

¥ 104,202

89,523
4,675
10,004The carrying values of accounts mentioned above approximate fair value because of their shortmaturities.
Long-Term Debt (Bank Loans)
The fair value of fixed rate loans is calculated by discounting total principal and interest payments topresent value using a discount rate equal to the rate that would be charged if the loan was newly
borrowed. The fair value of floating rate loans which are subject to specific method for interest rate swaps
is calculated by discounting total principal and interest payments which handled together with interest
rate swaps to present value using a discount rate equal to the rate that would be charged if the loan was
newly borrowed.

89,523
4,675
10,004

Derivatives¥ 104,202

The information of the fair value for derivatives is included in Note 16.
(b) Financial instruments whose fair values cannot be reliably determined

March 31, 2011
Carrying
AmountThousands of U.S. Dollars
Fair Value

Carrying AmountThousands ofMillions of Yen
U.S. Dollars
2011
2010
2011

Unrealized
Gain (Loss)

Cash and cash equivalents
Short-term investments
Notes and accounts receivable
Costs and estimated earnings onlong-term construction contracts
Jointly controlled assets of joint venture
Investment securities$ 1,573,711
957
500,477$ 1,573,711
957
500,477

174,626
1,068,219
50,220174,626
1,068,219
50,220Total$ 3,368,212$ 3,368,212

Notes and accounts payable—trade
Income taxes payable
Long-term debt

$ 1,173,700
72,120122,990$ 1,173,700
72,120122,998$8

Total$ 1,368,811$ 1,368,819$8Investment securities that do not have a quoted
market price in an active market
Investments in equity instruments that do nothave a quoted market price in an active market
Investments in unconsolidated subsidiaries andassociated companies that do not have a quoted
market price in an active market

The carrying values of accounts mentioned above approximate fair value because of their shortmaturities.
Jointly Controlled Assets of Joint Venture
The jointly controlled assets of joint venture are jointly controlled cash recognized based on the
Company's share of the venture. The carrying values of jointly controlled assets of joint venture areapproximate fair value because of their short maturities.
Investment Securities- 27 The fair values of investment securities are measured at the quoted market price of the stock exchange forthe equity instruments. The information of the fair value for investment securities by classification is
included in Note 5.

March 31, 2011
Due in1 Yearor Less
Cash and cash equivalents
Short-term investments
Notes and accounts receivable, andcosts and estimated earnings onlong-term construction contacts
Jointly controlled assets of joint
ventureTotal

Notes and Accounts Payable—Trade and Income Taxes Payable
The carrying values of accounts mentioned above approximate fair value because of their shortmaturities.
Long-Term Debt (Bank Loans)
The fair value of fixed rate loans is calculated by discounting total principal and interest payments topresent value using a discount rate equal to the rate that would be charged if the loan was newly
borrowed. The fair value of floating rate loans which are subject to specific method for interest rate swaps
is calculated by discounting total principal and interest payments which handled together with interest
rate swaps to present value using a discount rate equal to the rate that would be charged if the loan was
newly borrowed.

$ 19,780

2

2

35

2,692

2,702

32,442(b) Financial instruments whose fair values cannot be reliably determined
Carrying AmountThousands of

53,072

Due after
10 Years¥ 2,941¥ 19¥ 2,941¥ 19

88,662¥ 272,432

Cash and cash equivalents
Short-term investments
Notes and accounts receivable, andcosts and estimated earnings onlong-term construction contacts
Jointly controlled assets of joint
venture¥ 139,790
53

Total

¥ 260,692

50,932Millions of Yen
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

¥ 341

¥ 45

¥ 341

¥ 45

Due after
10 Years

69,917

March 31, 2011
Due in1 Yearor Less
Cash and cash equivalents
Short-term investments
Notes and accounts receivable, andcosts and estimated earnings onlong-term construction contacts

Millions of Yen
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years¥ 130,618
79

Due in1 Yearor Less

Derivatives
The information of the fair value for derivatives is included in Note 16.

- 28 -March 31, 2010

Above schedules do not include investment securities whose fair value cannot be reliably determined.

C H I YO DA CORPORATION ANN UAL REPOR T 2011

¥ 1,641(c) Maturity analysis for financial assets and securities with contractual maturities

Cash and Cash Equivalents, Short-Term Investments, Notes and Accounts Receivable, and Costs andEstimated Earnings on Long-Term Construction Contracts

38¥ 1,641

Thousands of U.S. Dollars
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years$ 1,573,711
957
639,427

Due after
10 YearsC H I YODA CORPORATION ANNUAL REPOR T 2011 39$ 35,439$ 237

Due in
1 Yearor Less
Cash and cash equivalents
Short-term investments
Notes and accounts receivable, andcosts and estimated earnings onlong-term construction contacts
Jointly controlled assets of joint
venture¥ 139,790
53

Total

¥ 260,692

50,932Millions of Yen
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years

¥ 341

¥ 45

¥ 341

¥ 45

Due after
10 Years

69,917

March 31, 2011
Due in1 Yearor Less
Cash and cash equivalents
Short-term investments
Notes and accounts receivable, andcosts and estimated earnings onlong-term construction contacts
Jointly controlled assets of joint
venture$ 1,573,711
957

Total

$ 3,282,315

639,427

Thousands of U.S. Dollars
Due after
Due after
1 Year
5 Years
throughthrough
5 Years
10 Years$ 35,439

March 31, 2011

Due after
10 Years$ 237

1,068,219$ 35,439$ 237

Please see Note 7 for annual maturities of long-term debt and Note 14 for obligations under financeleases, respectively.
16.

DERIVATIVES

Contract
AmountForeign currency forward contracts:
Selling U.S.$/buying yen
Selling Euro/buying yen
Selling GBP/buying yen
Buying U.S.$/selling yen
Buying Euro/selling yen
Buying Euro/selling U.S.$$ 315,689
41,843
3,185
519
262
14,925$ 26,072$ (427 )133(1 )$ (427 )
133
(1 )

50
749

14
(110 )

14(110 )

Total$ 376,426$ 26,872$ (392 )$ (392 )Derivative Transactions to Which Hedge Accounting Is Applied at March 31, 2011 and 2010
March 31, 2011- 29 -

Derivative Transactions to Which Hedge Accounting Is Not Applied at March 31, 2011 and 2010
March 31, 2011

Contract
AmountMillions of Yen
Contract
AmountFair
Due after
Value
One Year(Loss)

Foreign currency forward contracts:
Selling U.S.$/buying yen
Selling Euro/buying yen
Selling GBP/buying yen
Buying U.S.$/selling yen
Buying Euro/selling yen
Buying Euro/selling U.S.$¥ 26,202
3,472
264
43
21
1,238

¥ 2,163

Total¥ 31,243

Hedged Item

Unrealized
Gain (Loss)¥ (35 )
11

¥ (35 )
11

4
62

1
(9 )

1
(9 )

¥ 2,230¥ (32 )¥ (32 )March 31, 2010

Contract
Amount40

Millions of Yen
Contract
AmountFair
Due after
Value
One Year(Loss)

Unrealized
Gain (Loss)

Foreign currency forward contracts:
Selling U.S.$/buying yen
Selling Euro/buying yen
Selling GBP/buying yen
Buying U.S.$/selling yen
Buying Euro/selling yen¥ 24,754
2,236
278
2,599
6

¥ (74 )(1 )

¥ (74 )
(1 )

Total

¥ 29,876¥ (77 )¥ (77 )C H I YO DA CORPORATION ANN UAL REPOR T 2011

Thousands of U.S. Dollars
Contract
AmountFair
Unrealized
Due after
Value
One Year(Loss)
Gain (Loss)

Foreign currency forward contracts—
Accounted for under deferred hedge
accounting method:
Selling U.S.$/buying yen
Buying U.S.$/selling yen
Buying Euro/selling yen
Buying GBP/selling yen
Buying SGD/selling yen
Buying Euro/selling U.S.$

Foreigncurrency
forecasted
transaction

Total
Other*1:
Selling U.S.$/buying yen
Selling Euro/buying yen
Buying U.S.$/selling yen
Buying Euro/selling yen
Buying GBP/selling yen

Receivables

¥

2,968
3,914
1,943
17
200
2,858

¥

¥ 11,902¥¥

PayablesTotal
Interest rate swaps*2(fixed rate payment, floating rate receipt)

Millions of Yen
Contract
AmountContract
Due after
AmountOne YearLong-term debt

Total

959
66

Fair
Value
(Loss)

143

¥ 130
(25 )
21
(2 )
9
(21 )

¥

1,169

¥ 112

2,692
337
151
288
1

¥

43

3,470

¥

43

¥ 10,000¥ 10,000¥ 10,000¥ 10,000- 31 C H I YODA CORPORATION ANNUAL REPOR T 2011 41

Buying Euro/selling yen
Buying GBP/selling yen
Buying SGD/selling yen
Buying Euro/selling U.S.$

forecasted
transaction

Total
Other*1:
Selling U.S.$/buying yen
Selling Euro/buying yen
Buying U.S.$/selling yen
Buying Euro/selling yen
Buying GBP/selling yen

Receivables

Millions of Yen
Contract
AmountContract
Due after
AmountOne YearHedged Item
Foreign currency forward contracts—
Accounted for under deferred hedge
accounting method:
Selling U.S.$/buying yen
Selling Euro/buying yen
Buying U.S.$/selling yen
Buying Euro/selling yen
Buying GBP/selling yen
Buying Euro/selling U.S.$

Foreigncurrency
forecasted
transaction¥ 11,833
1,016
4,540
1,553
114
2,934

Total

¥ 3,361240
2,292¥ 21,993

Other*1:
Selling U.S.$/buying yen
Buying U.S.$/selling yen
Buying Euro/selling yen
Buying GBP/selling yen

Receivables

¥

76
440
424
4

¥

945

PayablesTotal¥ 5,893

Interest rate swaps*2(fixed rate payment, floating rate receipt)
Total

Fair
Value
(Loss)¥ (216 )
29
150
(61 )
(8 )
(161 )

Total
Interest rate swaps*2(fixed rate payment, floating rate receipt)
42

C H I YO DA CORPORATION ANN UAL REPOR T 2011

Total
1

$

32,439
4,062
1,819
3,476
18

$

527

$

41,816$527$ 120,481$ 120,481$ 120,481$ 120,481*2 Interest rate swap contracts accounted under specific method, are treated as part of the hedged long-term debt,
thus their fair values are integrally computed with those of hedged long-term debt. See Note 15 for the fairvalue of long-term debt.
17.

CONTINGENT LIABILITIESAt March 31, 2011, the Group had the following contingent liabilities:
Millions of Yen¥ (268 )Guarantees on employees' housing loans
Performance bond for an unconsolidated subsidiary

18.

¥

345
2,088

Thousands of
U.S. Dollars$

4,158
25,164COMPREHENSIVE INCOME
Total comprehensive income for the year ended March 31, 2010 consisted of the following:
Millions of Yen

Thousands of U.S. Dollars
Contract
AmountFairContract
Due after
Value
AmountOne Year(Loss)

Total comprehensive income attributable to:
Owners of the parent
Minority interests¥ 5,197
88

Total comprehensive income¥ 5,285

Other comprehensive income for the year ended March 31, 2010 consisted of the following:
Millions of Yen
Foreigncurrency
forecasted
transaction

Total
Other*1:
Selling U.S.$/buying yen
Selling Euro/buying yen
Buying U.S.$/selling yen
Buying Euro/selling yen
Buying GBP/selling yen

14,092- 33 -

Hedged Item

$ 1,351$*1 Foreign currency forward contracts, which are applied to the foreign currency translation at the contract rate of
the assets and liabilities on construction contracts denominated in foreign currencies

March 31, 2011

Foreign currency forward contracts—
Accounted for under deferred hedge
accounting method:
Selling U.S.$/buying yen
Buying U.S.$/selling yen
Buying Euro/selling yen
Buying GBP/selling yen
Buying SGD/selling yen
Buying Euro/selling U.S.$

Long-term debt

1,729

253
(25 )
120
(255 )$ 143,401

Payables

Total
March 31, 2010

23,414215
2,415
34,434$35,75947,162
23,414215
2,415
34,434$$ 143,401$

11,558805

1,729$ 1,566(307 )
253
(25 )
120
(255 )

14,092$ 1,351

Other comprehensive income:Unrealized gain on available-for-sale securities
Deferred gain on derivatives under hedge accounting
Foreign currency translation adjustments
Share of other comprehensive income in associates
Total other comprehensive income
19.

Receivables$

Payables- 32 Long-term debt$

32,439
4,062
1,819
3,476
18

$

41,816

$

527

¥

879
1,211
159
46

¥ 2,297

NET INCOME PER SHARE
Reconciliation of the differences between basic and diluted net income per share ("EPS") for the years ended March
31, 2011 and 2010 is as follows:Year Ended March 31, 2011527

$ 120,481$ 120,481$ 120,481$ 120,481

Basic EPS—Net income available
to common shareholders

Millionsof YenNet
IncomeThousandsof Shares
Weighted-Average
Shares¥ 7,979

259,165

Yen

U.S. Dollars
EPS

C H I YODA CORPORATION ANNUAL REPOR T 2011 43¥ 30.79$ 0.37Other comprehensive income for the year ended March 31, 2010 consisted of the following:
Millions of Yen
Other comprehensive income:Unrealized gain on available-for-sale securities
Deferred gain on derivatives under hedge accounting
Foreign currency translation adjustments
Share of other comprehensive income in associates¥

Total other comprehensive income
19.

879
1,211
159
46

(2) Methods of measurement for the(2)amountsof sales,profit (loss),for
assets,liabilitiesofand
other
items
for eachreportable
Methods
of measurement
the amounts
sales,
profit(loss),
assets,liabilitiessegment
and other items for each reportable segment¥ 2,297

The accounting policies of each reportablesegment areconsistent
to those
disclosed
in Note"Summaryof Significant
Policies." of Significant Accounting Policies."
The accounting
policiesof eachreportablesegment
are 2,
consistent
to those
disclosedAccounting
in Note 2, "Summary

NET INCOME PER SHARE

The profit in reporting segments are basedon theinoperating
Intersegment
and transfer
are Intersegment
measured at thequotedprice.
The profit
reportingincome.
segments
are based onincome
the operating
income.
incomeandmarket
transfer
are measured at the quoted market price.

Reconciliation of the differences between basic and diluted net income per share ("EPS") for the years ended March
31, 2011 and 2010 is as follows:(3) Information about sales, profit (loss),
assets, liabilities
other
items
is asassets,
follows:(3) Information
aboutandsales,
profit(loss),
liabilities and other items is as follows:Year Ended March 31, 2011

Basic EPS—Net income available
to common shareholders

Year Ended March 31, 2011
Millionsof YenNet
IncomeThousandsof Shares
Weighted-Average
Shares¥ 7,979

259,165

Yen

Reportable
Segment
Engineering

U.S. Dollars
EPS¥ 30.79$ 0.37

There
no dilutive
effectthe year ended March 31, 2011.
YearisEndedMarch
31,for2010

Year Ended March 31, 2010

Year Ended March 31, 2010
Year Ended March 31, 2010
Year Ended March 31, 2010

Millions
Millions

Basic EPS—Net income available to

Basic
EPS—Netincomeavailable
to
Basic
EPS—Netincomeavailable
tocommonshareholders
commonshareholders
Basic
EPS—Netincome available tocommonshareholders
Effectofshareholders
dilutivesecurities—StockBasic
EPS—Netincomeavailable tooptionsoptions
commonEffectof dilutive
securities—Stock
Effectofshareholders
dilutive securities—Stock options
commonEffectof dilutive
securities—Stock options
EffectofEPS—Net
dilutivesecurities—Stock
Dilutedincomefor computation
DilutedEPS—Netincomeforoptions
computation
DilutedEPS—Netincomefor computation
DilutedEPS—Netincomefor computation
Diluted EPS—Net
income for computation
SUBSEQUENT
EVENTThousands
Thousandsof Yen Thousandsof Shares
Millionsof Yen of SharesWeighted-Averageof SharesYenof YenMillions
Thousands
Millions
Thousands
Weighted-Average
Shares Yenof Yen Net Incomeof SharesWeighted-Average
Yen Net IncomeofSharesSharesYen
Shares EPS
NetofIncome
Weighted-Average
Weighted-Average
Net Income
SharesEPS
Net Income
SharesEPS¥ 2,953 259,301
259,301¥ 2,953¥ 11.39¥ 2,953259,301¥ 2,953259,301¥4
11.39
4¥ 2,953259,301
¥4
11.39
4
4
¥ 2,953 ¥ 2,953 259,306¥ 11.39
259,306
259,306¥ 2,953 ¥ 2,953 259,306¥ 11.39¥ 2,953259,306¥ 11.39¥ 11.39¥ 11.39

¥

5,687
8,506

¥ 247,082¥ 241,395
48,510¥5,687¥ (8,510 )8,506¥ 247,082¥ 247,082
8,510¥ (8,510 )

Total

Total

¥ 241,399¥ 14,193¥ 255,593¥ 241,399¥ (8,510 )¥ 14,193¥ 247,082¥ 255,593¥ (8,510 )

¥

¥

¥

Year Ended March 31, 2011- 35 - 35 - 35 -Reportable
Segment
Engineering

2,905

¥

¥499 (129 )
7,372 (492 )3,0097,604¥¥ 17,544
17,674353,392
353,885
197,633
190,029¥(129 )(492 )
7,604

23
41

2,5622,58641
977 977

23 (19 )41

2,5862,566
41 41
977 977(19 )

20

2,9052,925

20 (164 )2,9252,760(164 )

Year Ended March 31, 2010

Other *1

Millions of Yen
Reportable
Segment
Total
Engineering

Millions of Yen

3
Reconciliations*2 Total
Consolidated *Reconciliations
Other
*1
*

¥ 307,558
5

¥

5,427
5,904

¥ 312,985¥ 307,558
55,909¥5,427¥ (5,909 )5,904¥ 312,985¥ 312,985
5,909¥ (5,909 )

Total

Total

¥ 307,563¥ 11,331¥ 318,895¥ 307,563¥ (5,909 )¥ 11,331¥ 312,985¥ 318,895¥ (5,909 )

¥

¥

¥

1,387
321,801
168,648
2,038
977

389
6,747
2,659

¥

¥389 (75 )6,747 (374 )
2,6597,612¥¥1,7771,702
328,174
328,548
178,921
171,308¥(75 )(374 )
7,612

24
26

2,0382,06226
977 977

24
26

(3 )

2,0622,059
26 26
977 977(3 )

8

1,8381,847

8 (116 )1,8471,730(116 )

1,838

Year Ended March 31, 2011
Reportable
Segment
Engineering- 36 -

¥
1,777
1,387
328,548
321,801
171,308
168,648

Other *1

Thousands of U.S. Dollars
Thousands of U.S. Dollars
Reportable
Segment
Engineering
Other
*1
*2
Total
Reconciliations*2 Total
Consolidated Reconciliations*3- 36 -

Sales:
Sales to external customers
Intersegment sales or transfers

Sales:
Sales to external customers
Intersegment sales or transfers$ 2,908,376
48$

68,520102,488$ 2,908,376$ 2,976,896
48
102,537

$

Total

Total

$ 2,908,425$ 171,008$ 2,908,425$ 3,079,434$ 171,008$ (102,537 ) $ 3,079,434$ 2,976,896 $ (102,537 )

$

$

$

$

Segment profit
Segment assets
Segment liabilities
Other:
Depreciation
Amortization of goodwill
Amortization of goodwill
Investment in associated companies Investment in associated companies
Increase in property, plant andIncrease in property, plant andequipment and intangible assets
equipment and intangible assets

Segment profit

Total¥ 17,674
17,175353,885
346,512
190,029
187,019

Sales:
Sales to external customers
Intersegment sales or transfers

Year Ended March 31, 2011

Millions of Yen
Other *1

977

499
7,372
3,009

Sales:
Sales to external customers
Intersegment sales or transfers

Segment assets
evaluation
the Company's
is being
performed services,"in order toincluding
decide how
resources
are allocatedamong the byGroup.
The Groupmanagement
globally provides"Engineering
planning,
engineering,
Segment liabilities
among
the
Group.
The
Group
globallyprovides"Engineering
services,"
includingplanning,
engineering,(2) Methodsofmeasurement
fortheamountsofsales,
profit(loss),
assets,liabilities
and
other
items
for
each
reportablesegment
construction, procurement, commissioning and maintenance, adapting the most appropriate functions of each
Other:
construction,
procurement, commissioning and maintenance, adapting the most appropriate functions of eachrelated companies.
DepreciationTheaccounting
policies of each reportable segment are consistent to those disclosed in Note 2, "Summary of Significant Accounting Policies."
relatedcompanies.

C H I YO DA CORPORATION ANN UAL REPOR T 2011

17,175346,512
187,019
2,562

Segment profit
Segment profit
Segment assets
Segment assets
Segment liabilities
Segment liabilities
Other:
Other:
Depreciation
Depreciation
Amortization of goodwill
Amortization of goodwill
Investment in associated companies Investment in associated companies
Increase in property, plant andIncrease in property, plant andequipment and intangible assets
equipment and intangible assets(3) Information about sales, profit (loss), assets, liabilities and other items is as follows:

3
Reconciliations*2 Total
Consolidated *Reconciliations
Other
*1
*

¥ 241,395
4

Reportable
Segment
Engineering

The profit in reporting segments are based on the operating income. Intersegment income and transfer are measured at the quoted market price.

Millions of Yen

Sales:
Sales to external customers
Intersegment sales or transfers

Year Ended March 31, 2010

¥ 11.39¥ 11.39

Other *1

Millions of Yen
Reportable
Segment
Total
Engineering

Sales:
Sales to external customers
Intersegment sales or transfers

Segment profit
Segment profit
Segment assets
Segment assets
Segment liabilities
Segment liabilities
Other:
Other:
Depreciation
Depreciation
Amortization of goodwill
Amortization of goodwill
Investment in associated companies Investment in associated companies
Increase in property, plant andIncrease in property, plant andequipment and intangible assets
equipment and intangible assets

Yen
Yen
EPS
EPS

20.
20. SUBSEQUENT EVENT
20.
EVENT
20. SUBSEQUENTSUBSEQUENT
EVENT
20. SUBSEQUENTEVENT of retained earnings at March 31, 2011, was approved at the Company's shareholders
The following appropriation
Thefollowing
appropriationof retained
31, approved
2011, wasapproved
at theCompany's shareholders- 34 - atmeeting
on June23, 2011: of retainedThe
following
appropriation
earningsearnings
at March
31,March
2011, wasat theCompany's
shareholders
Thefollowing
appropriationof retained
earnings
atMarch
31, approved
2011, wasapproved
at theCompany's shareholders
meeting
on
June
23,
2011:
The
following
appropriationofretainedearnings
at
March
31,
2011,
was
at
the
Company's
shareholders
meeting on June 23, 2011:
meetingJune
23, 2011:
meeting
on on
June
23, 2011:
Thousands ofMillions of Yen
U.S. Dollars
Thousandsof Thousands ofof ThousandsofMillions of Yen
U.S.
Dollars
MillionsThousandsof YenU.S. Dollars
Millionsof YenDollars
Year-end cash dividends, ¥11.00 ($0.13) per share¥ 2,850$ 34,338
MillionsU.S.
ofYen
U.S. Dollars
Year-end cash dividends, ¥11.00 ($0.13) per share¥ 2,850$ 34,338
Year-end
cash
dividends,¥ 2,850$ 34,338
Year-end
cash
dividends,¥11.00¥11.00($0.13)($0.13)
per shareper share¥ 2,850$ 34,338
21. SEGMENT
INFORMATION
Year-end cash dividends, ¥11.00 ($0.13) per share¥ 2,850$ 34,338
21. SEGMENT INFORMATION
21.
SEGMENTINFORMATIONMarch 2008,
the
ASBJ revised ASBJ Statement No. 17, "Accounting Standard for Segment Information
21. InSEGMENTINFORMATION
21. Disclosures"
INFORMATION
andtheissuedGuidance
No. 20, "Guidanceon AccountingStandard
Segment
Information
InSEGMENTMarch 2008,
ASBJASBJ
revisedASBJ Statement
No. 17, "AccountingStandard
for forSegment
Information
In
2008,
the
ASBJ
revisedASBJ
StatementNo.
17,is"AccountingStandard
for Standard
Segment
Information
Disclosures."
Under
the ASBJ
standard
andguidance,
anentityrequiredreportfinancialanddescriptive
information
Disclosures"
andissuedASBJ
Guidance
No. 20,Statement"Guidanceon AccountingStandard
for
Segment
InMarch
March
2008,
the
revised
ASBJ
No.
17,to"Accounting
forInformation
Segment
Information
Disclosures"
andissuedASBJ
Guidance
No.
20,Statement"Guidanceon AccountingStandard
forandSegment
about
its reportablesegments.
Reportablesegments
are operating
segments
orfinancial
aggregationsof operating
segments
Disclosures."
Under
the
standard
andGuidance
guidance,
anentityrequiredto"Accounting
reportdescriptive
information
In
March
2008,
the
ASBJ
revised
ASBJ
No.
17,
Standard
forInformation
Segment
Information
Disclosures"
andissuedASBJ
No.
20,is"Guidanceon
AccountingStandard
for
Segment
Information
Disclosures."
Under
the
standard
andGuidance
guidance,
anentityis"Guidance
requiredreportfinancialanddescriptive
information
that
meet
specifiedcriteria.
Operatingsegments
arecomponents
of antoentity
which
separatefinancialabout
its reportablesegments.
Reportablesegments
areoperatingorabout
aggregationsof operating
segments Information
Disclosures"
andissued
ASBJ
No.
20,
on
AccountingStandard
forandSegment
Disclosures."Underthesuchstandard
andguidance,
anentitysegments
isbyrequiredtoreportfinancialdescriptive information
about
its
reportablesegments.
Reportablesegments
areoperatingsegmentsoraggregationsofoperatingsegments
informationisavailable
andinformationisevaluated
regularly
thechiefoperatingdecision
maker
in
that
meet specified
criteria.
segments
are components
of anentity about
separatefinancial
Disclosures."
Under
theOperating
standard
and guidance,
an entity
is required
towhichreportfinancialand descriptive
information
about
reportablesegments.
Reportablesegments
areofoperating
segmentsoraggregations
segmentsthatmeetits
specifiedcriteria.
Operatingsegments
components
an
about
which
separatefinancialdeciding
howallocateresourcesandin assessing
performance.
Generally,
segment
informationisrequiredbeinformation
isto
available
andsuch informationis areevaluated
regularly
byentity
the chief
operatingdecisionmaker
inoftooperating
about
its
reportablesegments.
Reportablesegments
areoperatingsegmentsoraggregations
operatingsegments
that meet
specifiedcriteria.
Operatingsegments
arecomponentsofanoperating
entityabout
separate
informationisavailable
andinformation
isfor
evaluated
regularly
by thechief
decisionmaker
inof
reported
on
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same
basis
assuchis usedinternallyevaluating
operatingsegment
performance
andwhichhow
to financial
deciding
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segment
information
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required
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that
meet
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componentsofanentityabout
whichseparate
decidinghow
tois
allocateresources
andininformationassessing
performance.
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segment
information
isdeciding
to beallocateresources
to operatingThisaccounting
standardandtheguidanceareapplicable
torequired
segment
information
available
such
is areevaluated
regularly
by
the
chief
operatingdecisionmaker inreported
on
the
same
basis
as andissegments.
usedinternallyfor evaluating
operatingsegment
performanceandhow
to financial
reportedon how
the
same
basis
isresourcesusedinternallyforassessing
evaluating
operatingsegment
performanceanddeciding
how to ismakerinformationisavailable
such
informationis orevaluated
regularly
bytheoperatingdecisionin to beinformation
disclosuresforas
theandfiscalyears
beginning
on
after
April
1,the
2010.
allocateresources
to allocate
operatingsegments.
Thisaccounting
standard
andguidance
are chiefapplicable
toinformation
segment
deciding
toandinperformance.
Generally,
segment
required
allocateresources
to allocate
operatingsegments.
Thisaccounting
standard
and1,theguidance
are applicable
toinformation
segment
deciding
howtoresources
andin
assessing
performance.
Generally,
segment
isrequired
to beinformation
disclosuresforthefiscalyears
beginning
on
or
after
April
2010.
reported on the same basis as is used internally for evaluating operating segment performance and deciding how
toinformation
disclosures
forfortheyears
or afterApril
2010. accountingThe
segmenton
information
thefiscal
year
ended
March 31,on2010
under
the 1,
revisedstandard
is also disclosed
reported
the samebasis
asissegments.
usedbeginninginternallyforevaluating
operatingsegment
performanceand deciding
how toallocateresourcestooperatingThisaccounting
standardandtheguidanceareapplicabletosegment
hereunder
as required.
The
segment
information
for
the
year
ended
March
31,
2010
under
the
revisedaccounting
standardisalso
disclosed
allocateresources
to operatingThisaccounting
standard
and1,theguidance
are applicable to segment
information
disclosures
the segments.
fiscal
on or
April
2010.
The
segment
information
for forthe year
ended years
March beginning31, 2010 undertheafterrevisedaccounting
standard is also disclosed
hereunder
as required.
information
disclosuresforthefiscalyears
beginning
on
or
after
April
1,
2010.
hereunder
as required.
(1)
Descriptionof reportable segments
TheDescription
segment information
for the year ended March 31, 2010 under the revised accounting standard is also disclosed(1)
of reportable segments
Thesegment
information
for theare
year
ended
March
31, 2010
under
the revised
accounting
standard is also disclosed(1)
Descriptionofreportablesegments
The
Group'sreportablesegments
those
for whichseparatefinancialinformation
is available
and regular
hereunder
as required.
evaluation
the Company's
management
performed
in order todecide howisresources
hereunder
asby
required.
The
Group'sreportablesegments
are those isforbeing
which
separate financial
information
available are
andallocatedregular
The
Group'sreportablesegments
are thoseforbeing
which
separate services,"
financialinformationisresources
available
andallocatedregularamong
the byGroup.
The Group
globallyprovides"Engineering
includingplanning,
engineering,
theofCompany's
management
performed
in order todecide howare(1) evaluation
Description
reportablesegments isevaluationby
the Company's
managementis
being
performedadapting
in order the
toincluding
decidehowresources
are allocatedconstruction,
procurement,
commissioning
andmaintenance,
mostappropriate
functionsof eachamong
theGroup.
The
Group
globallyprovides"Engineering
services,"planning,
engineering,(1) Description of reportable segments
among
the
Group.
The Group
globally provides"Engineeringadapting
services,"theincluding
planning,functions
engineering,
relatedcompanies.
construction,
procurement,
commissioning
and maintenance,
most appropriateof eachThe Group's
reportablecommissioning
segments areand
those
for whichseparate
information
is ofavailable
and regularconstruction,
procurement,
maintenance,
adapting
the financial
most appropriate
functionseach
relatedcompanies.
The
Group'ssegments
are those isforbeing
which
separate financial
information
available are
andallocatedregularrelatedcompanies.
evaluation
byreportable
the Company's
management
performed
in order todecide howisresources

44

Year Ended March 31, 2011

206,931
4,174,849
2,253,249

Notes for the year ended March 31, 2011:
Notes for the year ended March 31, 2011:

30,87011,78335,0086,019
88,83036,261

206,931$ 212,950
4,174,849
4,263,680
2,253,249
2,289,511

68,520$ 2,976,896$ 2,976,896
102,488
102,537$(102,537 )$(102,537 )

6,019$(1,565 ) $ 212,950$ 211,385 $
88,830 (5,935 )
4,263,680
4,257,744
36,261 91,619
2,289,511
2,381,130(1,565 )(5,935 )91,619286
497

30,87031,157
497
11,78311,783

286
497

(237 )

31,157 30,919
497
497
11,783 11,783(237 )

241

35,00835,249

241 (1,987 )

35,249 33,262(1,987 )C H I YODA CORPORATION ANNUAL REPOR T 2011 45
represents
industry
segments
which
are notconsisting
included ofin thereportablesegment,
consistingof temporary
staffing
services, IT services and travel service
which arenot includedin thereportablesegment,
temporarystaffing
services,
IT services
and travel
services.
*1 "Other"*1 "Other" represents industry segments*2 Consolidated*2 3 The detail of reconciliations is as follows:
The detail of reconciliations
is as *follows:*2 Reconciliations

Year Ended March 31, 2011

Thousands of U.S. Dollars

Reportable
Segment
Engineering

Other *1

Total

Reconciliations *2

Consolidated *3

Sales:
Sales to external customers
Intersegment sales or transfers$ 2,908,376
48$

68,520102,488$ 2,976,896
102,537$(102,537 )Total$ 2,908,425$ 171,008$ 3,079,434$ (102,537 )$ 2,976,896

Segment profit
Segment assets
Segment liabilities
Other:
Depreciation
Amortization of goodwill
Investment in associated companies
Increase in property, plant andequipment and intangible assets

$

$

$

$

$

206,931
4,174,849
2,253,249

6,019
88,83036,26130,87011,78335,008

212,950
4,263,680
2,289,511$ 2,976,896(1,565 )(5,935 )91,619211,385
4,257,744
2,381,130

286
497

31,157497
11,783(237 )

30,919497
11,783241

35,249(1,987 )33,262(c) Information about major customers
about major customers(c) Information (c)aboutInformation
major customers

Notes for the year ended March 31, 2011:*1 "Other" represents industry segments which are not included in the reportable segment, consisting of temporary staffing services, IT services and travel services.

Year Ended March 31, 2011

*2 The detail of reconciliations is as follows:(1) The reconciliation in segment profit ¥(129) million ($(1,565) thousand) is the elimination of intersegment trades.

(2) The reconciliation in segment assets ¥(492) million ($(5,935) thousand) is the result of elimination of intersegment trades ¥(2,628) million ($(31,664) thousand) and theGroup's assets of ¥2,135 million ($25,728 thousand) which are not included in the reportable segment.
(3) The reconciliation in segment liabilities ¥7,604 million ($91,619 thousand) is the result of elimination of intersegment trades ¥(2,395) million ($(28,862) thousand) and theGroup's liabilities of ¥10,000 million ($120,481 thousand) which are not included in the reportable segment.

(5) The reconciliation in increase in property, plant and equipment and intangible assets of ¥(164) million ($(1,987) thousand) is the elimination of intersegment trades.
*

Name

Name

The calculation of the segment profit is based on the operating income on the consolidated statements of income.

Notes for the year ended March 31, 2010:*1 "Other" represents industry segments which are not included in the reportable segment, consisting of temporally staffing services, IT services and travel services.

(2) The reconciliation in segment assets ¥(374) million is the result of elimination of intersegment

is as follows:million and the Group's assets of ¥2,147 million which are not included in the*2 The detail of reconciliations
trades ¥(2,521)

reportable segment.

(1) The reconciliation in segment profit ¥(75) million is the elimination of intersegment trades.

Related
Segment

Name¥ 48,060
Engineering
29,405Engineering

Related
Segment

RelatedMillions of
Yen
Segment

Ras laffan Liquefied Natural Gas Ras
CompanyLtd. IIIRas Natural
laffan Liquefied
NaturalGas
Engineering
Ltd. IIIlaffan Liquefied
Gas Company
Ltd.
IIICompany
Qatar Liquefied Gas Company Ltd.
III, Liquefied
IV
Qatar
Liquefied
Gas
Ltd. III, IV
Engineering
Qatar
Gas
CompanyLtd.
III,Company
IV¥ 38,023
Engineering
35,147
Engineering

Name

Name

Name

2011

(4) The reconciliation
depreciation of ¥(3)is the ineliminationof intersegment- 37 -andtrades.
(5) Theinreconciliation
inmillion
increase
property,plant
equipment and intangible assets of¥(116)
millionis the planteliminationof intersegment
trades.
(5) The reconciliation
in increasein property,
and equipment
and intangible assetsof¥(116) million is the elimination of intersegment trades.

*3 The calculation of the segment profit is based on the operating income on the consolidated statements of*3 The calculation of the segment profit is based on the operating income on the consolidated statements ofincome.
income.

Related
Segment
Millions of Yen Millions oEngineering ¥ 38,023
Engineering 35,147

Related Information

Millions of Yen

2010

Thousands ofThousands of
U.S. Dollars
Millionsof Yen Millions of Yen U.S. Dollars
2011 20112010
20102011
2011(a) Information about products and services

The proportion of engineering business is over 90% of the total sales of the Group. Accordingly, thepresentation of the information about each service is not required under Japanese accounting standards.

The proportion of engineering business is over 90% of the total sales of the Group. Accordingly, the(b) Information
about geographicalareas
presentationof theinformation about each service is not required under Japanese accounting standards.

Engineering
Other*Engineering
Other*Engineering
Other*

¥ 757

¥ 798

¥ 757

$ 9,127 ¥ 757
¥ 798

¥ 798
$ 9,127

$ 9,1

Total

Total

Total

¥ 757

¥ 798

¥ 757

$ 9,127 ¥ 757
¥ 798

¥ 798
$ 9,127$ 9,1

Geographical segments

Geographical segments
Geographical segments

Year Ended March 31, 2010

Year
Year Ended March
31,Ended2010 March 31, 2010

Millions of Yen

Revenue by region for the years ended March 31, 2011 and 2010, were as follows:(b) Information about geographical areas

Thousands ofMillions of Yen
U.S. Dollars
Revenue by region for the years ended 2011
March 31, 2011were as follows:2010 and 2010,2011¥ 143,878
143,287
12,70913,109$ 1,457,719
773,885
Millions of Yen
355,175
235,0232011
2010
155,092

Japan¥ 247,082¥ 312,985 ¥ $120,990
2,976,896
Qatar
64,232
Note: Revenue
is classified
in countries or regions based on location of customers.
Papua
New Guinea
29,479Asia
19,506
The proportion of fixed assets placed in Japan is over 90% in the total fixed assets of the Group. Accordingly,
the presentationof the information about fixed assets is not required under Japanese accounting standards.
Others12,872
Total¥ 247,082¥ 143,878
143,287
12,70913,109¥ 312,985

Japan
Revenue:
Thousands of Sales to customers
U.S. Dollars Interarea transfer
2011
Total sales$ 1,457,719
773,885Operating expenses
355,175
235,023Operating income
155,092
Total assets$ 2,976,896

Asia

Japan

Other

JapanAsia Subtotal

Millions of Yen Millions of Yen
Eliminations
Elimination
Asia
Consolidated
Subtotal
Other (Corporate)Other
Subtotal(Corporate)

Revenue:
Revenue:
Sales to customers
Sales to customers
Interarea transferInterarea transfer¥ 303,372
922

Total sales

304,295

11,585304,295 1,061 304,295
11,585 316,942 11,585
1,061(3,956 ) 1,061
316,942 312,985316,942(3,956 )Operating expenses
Operating expenses

303,560

10,620303,560 1,059 303,560
10,620 315,240 10,620
1,059(3,956 ) 1,059
315,240 311,283315,240(3,956 )Total sales

Operating incomeOperating income
Total assets

Total assets

¥

¥

734

¥

¥ 319,561¥

8,586 ¥ 303,372¥ 1,026¥ 303,372¥ 312,985¥ ¥8,586¥ ¥1,026¥ 312,985¥ 312,985¥ 8,586
1,026
312,985
2,998
35
922
353,956922
2,998 3,956 2,99835 ¥ (3,956 )¥3,956(3,956 )

965 ¥

734¥

2¥

¥
¥ 734965

1,702¥ ¥ 965 2¥¥

21,702
¥

1,702
¥
1,702

9,413 ¥ 319,561¥ 1,772¥ 319,561¥ 330,747¥ ¥9,413¥ 328,174¥ 330,747¥ 9,413
1,772 ¥ (2,572¥) ¥1,772
330,747¥ (2,572 )Note: Revenue is classified in countries or regions based on location of customers.
The proportion of fixed assets placed in Japan is over 90% in the total fixed assets of the Group. Accordingly,
the presentation of the information about fixed assets is not required under Japanese accounting standards.

- 38 -

Thousan
U.S. Do
201

Segment Information for the Year
Ended March
31,
Segment
2010
Information
forMarch
the Year
Segment
Information
for theYear Ended
31,Ended2010 March 31, 2010(a) Information about products and services

C H I YO DA CORPORATION ANN UAL REPOR T 2011

¥ 38,035,1* Other involves temporally staffing
servicesand *IT
Other
services.
involves
temporally
staffing
services and IT services.
* Other
involves
temporally
staffing
services andIT services.

Related Information

46

$ 579
354

Year
Year Ended March
31,Ended2010 March 31, 2010

reportable segment.

Total¥ 48,060$ 579,038
29,405 354,279

Ending balance of goodwill as of Ending
March 31,2011ofandEnding2010,
balancewasfollows:
goodwill
as ofandMarch
31,was2011
2010, was as follows:balancegoodwill
as ofasof
March
31, 2011
2010,
asand
follows:(3) The reconciliation in segment liabilities ¥7,612 million is the result of elimination of intersegment
trades ¥(2,391) million and the Group's liabilities of ¥10,004 million which are not included in the(4)segment.
The reconciliation in depreciation of ¥(3) million is the elimination of intersegment trades.
reportable¥ 120,990
64,232
29,47919,506
12,872Engineering$ 579,038¥ 48,060
Engineering
354,279 29,405

Thousan
U.S. Do(d) Information about goodwill bygoodwill by segments(d)segments
Information (d)aboutInformation
goodwill byabout
segments(2) The reconciliation
segment assets ¥(374)million is theresult of eliminationintersegment(3) Theinreconciliationin segment
liabilities¥7,612 ofmillionis the result of elimination of intersegment
trades ¥(2,521) million and the Group's assets of ¥2,147 million which are not included in the
trades¥(2,391)
millionandtheGroup'sliabilitiesof¥10,004
million which are not included in thereportable segment.

Japan
Qatar
Papua New Guinea
Asia
OthersThousands
Related ofThousands ofSegment
U.S. Dollars
YenDollars
Millions of Yen Millions ofU.S.

RelatedMillions of
Yen
Segment

Qatar Liquefied Gas Company Ltd.
III, Liquefied
IV
Qatar
LiquefiedEngineering
Gas
Ltd. III, IV
Qatar
Gas
CompanyLtd.
III,Company
IV
Esso Highlands Ltd.
Esso Highlands Engineering
Ltd.
Esso Highlands Ltd.

Year Ended March 31, 2010

(4) The reconciliation in depreciation of ¥(19) million ($(237) thousand) is the elimination of intersegment trades.

3

Year
Year Ended March
31,Ended2011 March 31, 2011

- 39 -- 39 -- 39 -C H I YODA CORPORATION ANNUAL REPOR T 2011 47

INDEPENDENT AUDITORS’ REPORT

Notes:

1. The Company and consolidated subsidiaries operate within three geographic segments based on the
countries where the companies are located.
The segments consisted of the following countries in 2010:
Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand
Other: Qatar, United States of America and Nigeria
2. Corporate assets mainly consist of long-term loans and investment securities of the Company.
Corporate assets as of March 31, 2010 were ¥2,992 million.

Sales to foreign customers
Year Ended March 31, 2010

Overseas sales (A)Consolidated sales (B)(A)/(B)Asia

The Middle
and Near East

¥ 12,709
4.06%

Millions of Yen
Oceania

Other

Total

¥ 147,336¥ 6,730¥ 2,330

47.07%

2.15%

0.75%

¥ 169,107
312,98554.03%

Note: The Company and consolidated subsidiaries are summarized into four segments by geographic area basedon the countries where the companies are located.
The segments consisted of the following countries in 2010:
Asia:
The Middle and Near East:
Oceania:
Other:

Singapore, Indonesia, Malaysia, Thailand and others
Qatar, UAE and others
Papua New Guinea and Australia
Algeria and Brazil

The Company and its consolidated subsidiaries operate predominantly in the engineering business, while certain
subsidiaries operate in leasing and software producing businesses which are minor in relation to the total business.
The proportion of engineering business is over 90% in the total sales of the Group. Accordingly, the presentation ofindustry segment information is not required under Japanese accounting standards.

******- 40 48

C H I YO DA CORPORATION ANN UAL REPOR T 2011

C H I YODA CORPORATION ANNUAL REPOR T 2011 49

Global Network (As of July 1, 2011)

The Netherlands
Italy

Korea

U.S.A.

China

Saudi Arabia
Qatar

Overseas Offices

Japan

U.A.E.

Myanmar
India

Philippines

Thailand
Malaysia
Singapore
Indonesia

BrazilAustralia

Korea Representative Office

Singapore Human Resources OfficeTel: (971) 2-671-7161

Tel: (82) 52-256-5721/5722

Tel: (65) 6324-0080

Beijing Office

Middle East Headquarters Doha Office

The Hague Representative OfficeTel: (86) 10-6505-2678

Tel: (974) 4462-2875/2876

Tel: (31) 70-385-9453

Jakarta Office

Milan Representative OfficeTel: (62) 21-570-7579

Tel: (39) 02-303517-111

Overseas Subsidiaries & Affiliated Companies
Chiyoda Almana Engineering LLC

Chiyoda Oceania Pty Limited

Chiyoda Singapore (Pte) Limited

12th Floor, Al-Qassar Tower,
Taawon Street, West Bay, P.O. Box 22961,
Doha, Qatar
Tel: (974) 4407-4660
Fax: (974) 4407-4650
URL: http://www.cael.com.qa/

Level 28, AMP Tower 140 St Georges Terrace,
Perth WA 6000, Australia
Tel: (61) 8-9278-2599
Fax: (61) 8-9278-2727

14 International Business Park, Jurong East,
Singapore 609922
Tel: (65) 6563-3488
Fax: (65) 6567-5231
URL: http://www.chiyoda.com.sg/

Home Offices

Chiyoda Corporation (Shanghai)

Chiyoda Petrostar Ltd.

Chiyoda (Thailand) Limited

Yokohama Head OfficeKoyasu Office & Research Park

Kawasaki OfficeOsaka Office12-1, Tsurumichuo 2-chome,
Tsurumi-ku, Yokohama
230-8601, Japan
Tel: (81) 45-521-1231(voice guidance)

13, Moriya-cho 3-chome,
Kanagawa-ku, Yokohama
221-0022, Japan
Tel: (81) 45-441-1268

Solid Square west pavilion 9F,
580, Horikawa-cho,
Saiwai-ku, Kawasaki
212-0013, Japan
Tel: (81) 45-521-1231(voice guidance)

5-24, Miyahara 3-chome,
Yodogawa-ku,
Osaka 532-0003, Japan
Tel: (81) 6-6399-5265

Room 606, UC Tower, No. 500,
Fushan Road, PuDong New Area,
Shanghai 200122, China
Tel: (86) 21-6876-1500
Fax: (86) 21-6876-1300

3rd Floor, Gulf Center Building,Prince Turki Street, Corniche, Al-Khobar
P.O. Box 31707 Al-Khobar 31952,
The Kingdom of Saudi Arabia
Tel: (966) 3-864-0839
Fax: (966) 3-864-0986

140/42 ITF Tower II, 20th Floor,
Silom Road, Kwaeng Suriyawong,
Khet Bangrak, Bangkok 10500, Thailand
Tel: (66) 2-231-6441/6442
Fax: (66) 2-231-6443

Chiyoda do Brasil Representações Ltda.

Chiyoda Philippines Corporation

L&T-Chiyoda Limited

Praia de Botafogo, 228 Sala 501-Botafogo
CEP 22250-040 Rio de Janeiro-RJ-Brazil
Tel: (55) 21-3738-8280
Fax: (55) 21-3738-6835

5･10･15~21F Sun Plaza Building 1507
Shaw Boulevard cor. Princeton Street,
Barangay Wack-Wack
Mandaluyong City 1555, Philippines
Tel: (63) 2-571-7596
Fax: (63) 2-571-7599
URL: http://www.chiyodaphil.com.ph/

B.P. Estate National Highway No. 8,
Chhani Baroda-391740,
Gujarat State, India
Tel: (91) 265-2771003/2772855
Fax: (91) 265-2774985
URL: http://www.lntchiyoda.com/

Chiyoda International Corporation

Chiyoda & Public Works Co., Ltd.

PT. Chiyoda International Indonesia

1177 West Loop South, Suite 680
Houston, TX 77027, U.S.A.
Tel: (1) 713-965-9005
Fax: (1) 713-965-0075

Room 308~309, Sedona HotelNo. 1, Kaba Aye Pagoda Road,
Yankin Township, Yangon, Myanmar
Tel: (95) 1-545605
Fax: (95) 1-545227

9th Floor, Midplaza Bldg., Jalan Jenderal
Sudirman Kav. 10-11 Jakarta, 10220,
Indonesia
Tel: (62) 21-570-4693
Fax: (62) 21-573-5723

Head Office
Overseas Offices
Major Subsidiaries & Affiliated Companies

Domestic Subsidiaries & Affiliated Companies
Engineering
Chiyoda Advanced Solutions
Corporation

Business Support
Chiyoda TechnoAce Co., Ltd.

Arrow Business Consulting Corporation

Tel: (81) 45-441-9600
URL: http://www.cta.chiyoda.co.jp/

Tel: (81) 45-502-5774

Chiyoda Keiso Co., Ltd.

Chiyoda U-Tech Co., Ltd.

Arrowhead International Corporation

Chiyoda Malaysia Sdn. Bhd.

Chiyoda Sarawak Sdn. Bhd.

Tel: (81) 45-441-1433
URL: http://www.ckc.chiyoda.co.jp/

Tel: (81) 45-502-7618
URL: http://www.utc-yokohama.com/

Tel: (81) 3-5470-0880
URL: http://www.arrowhead.co.jp/

Chiyoda Kosho Co., Ltd.

IT Engineering Limited

Arrow Human Resources Co., Ltd.

Survey Lot 4083, 1st Floor, Parkcity Commerce
Square, Phase 5, Jalan Tun Ahmad Zaidi, 97000
Bintulu, Sarawak, Malaysia
Tel: (60) 86-312026/312027
Fax: (60) 86-312041

Tel: (81) 45-506-7662
URL: http://www.cks-ykh.co.jp/

Tel: (81) 45-441-9123
URL: http://www.ite.co.jp/

Tel: (81) 45-662-1126
URL: http://www.ahr.co.jp/

15th Floor, Menara Maxisegar,
Jalan Pandan Indah, 4/2, Pandan Indah,
55100
Kuala Lumpur, Malaysia
Tel: (60) 3-4297-0988
Fax: (60) 3-4297-0800
URL: http://www.chiyoda.com.my/

Tel: (81) 45-441-1260
URL: http://www.chiyoda-as.co.jp/

50

Abu Dhabi OfficeC H I YO DA CORPORATION ANN UAL REPOR T 2011

C H I YODA CORPORATION ANNUAL REPOR T 2011 51

Corporate Information (As of March 31, 2011)
Major Shareholders

Chiyoda Corporation
Head Office

Annual Fiscal Close

Transfer Agent of Common Stock

12-1, Tsurumichuo 2-chome, Tsurumi-ku,
Yokohama 230-8601, Japan
Tel: (81) 45-521-1231
Fax: (81) 45-503-0200

March 31

Mitsubishi UFJ Trust and Banking
Corporation
1-4-5 Marunouchi, Chiyoda-ku, Tokyo

Shareholders’ Meeting

Established
January 20, 1948

Paid-in Capital¥43,396 million

Number of Employees

June

Authorized Shares

Number of Shares per Unit

650,000,000

1,000Capital Stock Issued

Stock Code260,324,529

ISIN:
JP3528600004
SEDOL 1: 6191704 JP
TSE:
6366

Number of Shareholders
14,4281,304 (Non-Consolidated)
4,104 (Consolidated)

URL
http://www.chiyoda-corp.com/en/

Organization Chart (As of July 1, 2011)

Numberof Shares Owned(thousands of shares)

Ratio of
Shares Owned(%)

Mitsubishi Corporation

86,931

33.39

The Master Trust Bank of Japan, Ltd. (Trust Account)

11,892

4.57

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

9,033

3.47

The Mitsubishi UFJ Trust and Banking Corporation

8,032

3.09

Japan Trustee Services Bank, Ltd. (Trust Account)

6,452

2.48

The Chase Manhattan Bank N.A. 385036

5,431

2.09

The Bank of New York, Treaty JASDEC Account

5,002

1.92

State Street Bank and Trust Company

4,970

1.91

State Street Bank and Trust Company 505202

4,270

1.64

JP Morgan Securities Japan Co., Ltd.

3,823

1.47

Breakdown by Shareholder
Shareholders’ Meeting

12.02%

Corporate Auditors Committee

22.31%

Board of Directors

24.00%

Executive Committee

Securities Companies
Other Corporations

Office of the President
CSR Division

Financial Institutions

3.18%

Total Number of Shares Issued :260,325 thousand

Global Operation Division

Foreign Investors and Others

38.49%

Individuals and Others

SQE Division
Operational Auditing OfficeMonthly Stock Price Range on the Tokyo Stock Exchange
Corporate Planning,
Management & Finance

Projects Logistics &Construction

Technology & Engineering

Corporate Planning DivisionCorporate Services &HRM Division

Technology Planning &Administration Office

Research Institute ofTechnology Innovation & Strategy

PC Planning &Administration Office

Engineering Operation Division

Mechanical Engineering Division

Procurement Division

Finance & Project Management
Administration Division

Process Engineering Division- Gas & LNG

Electrical & Control System
Engineering Division

Construction Division

Process Engineering Division- Refinery, Petrochemical & New Energy

Piping Engineering Division
Civil Engineering Division

(Yen)
3,600

(Yen)
24,000Share Price (left)
VolumeNikkei Stock Average (right)

2,400

16,000

1,200

8,000

Project Operations
Project Planning &Administration Division
Project Management Services Division

Business Development Operation

52

International Project Division 1

International Project Division 2

Domestic Project Division 1

International Project Division 3

Domestic Project Division 20Technology Development Business Operation

Business Development
Management Division

Technology Development
Business Planning & Administration OfficeBusiness Development Division 1

Strategic Business Development Division

Business Development Division 2

Green Infrastructure Project DivisionC H I YO DA CORPORATION ANN UAL REPOR T 2011

(Thousandsof shares)
160,000

80,000Technology Development Division
Green Technology Project Division
Pharmaceutical & Environmental Project Division

4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4
2006
2007
2008
2009
2010
2011

0

C H I YODA CORPORATION ANNUAL REPOR T 2011 53

12-1, Tsurumichuo 2-chome, Tsurumi-ku,
Yokohama 230-8601, Japan
Tel: (81) 45-521-1231
Fax: (81) 45-503-0200
http://www.chiyoda-corp.com

CORPORATE PHILOSOPHY
Enhance our business in aiming for harmony
between energy and the environment,
and contribute to the sustainable development ofa society as an integrated engineering company
through the use of our collective wisdom andpainstakingly developed technology.