ENGINEERING A BETTER TOMORROWCHIYODA CORPORATIONANNUAL REPORT 1999
Fiscal Year Ended March 31, 1999

Consolidated Financial Highlights
Chiyoda Corporation and Consolidated Subsidiaries
Years ended March 31, 1999 and 1998

Thousands of
U.S. Dollars

Millions of Yen

1999

1998

1999

¥303,476$2,601,950

11,62351,79596,858

Total assets .............................................................................................................. ¥213,920¥257,746$1,782,666

For the Year:
Revenue from construction contracts ................................................................... ¥312,234
Net loss ....................................................................................................................
At Year-End:Long-term debt ........................................................................................................

13,518

7,569

112,650

Total shareholders’ equity ......................................................................................

6,208

5,931

51,733

Per Common Share (Yen and U.S. Dollars):
Net loss .................................................................................................................... ¥

58

¥

265

$

0.48

Note: The U.S. dollar amounts are given solely for convenience and have been calculated at the rate of ¥120 to US$1, the approximate rate of exchange prevailing at March 31, 1999.

Contents
ProfileA Message from the Management
Review of Operations
Hydrocarbon Sector
Non-Hydrocarbon Sector
Main Projects
Board of Directors
Financial Section
Corporate Directory
Corporate Data

1
2
4
6
8
10
12
30
31

Profile

Since its foundation in 1948, Chiyoda Corporation has earned a strong reputation as a
global engineering company, with roots in the hydrocarbon processing industry. Leveraging its vast accumulated experience, Chiyoda has set its sights on becoming an integrated provider of engineering and construction services to customers around the world.
The Company is now applying its technological and engineering expertise to such areas
as environmental systems, pharmaceutical manufacturing, food processing, factory
automation, automotive plants, theme parks, and aerospace development. To better
serve globally competitive markets, Chiyoda believes in continuous renewal to realize
its mission of becoming the engineering company of choice for customers worldwide.
The Year in Review
For Chiyoda, fiscal 1999, ended March 31, 1999, was characterized by major strides
toward a fresh start in the 21st century. Chiyoda completed virtually all unprofitablelarge-scale projects and continued to streamline operations by trimming its headquarters’ functions and enhancing efficiency across its value chain.
The Company became profitable in completed projects for the first time in two fiscal
years and set the stage for growth in the 21st century. Among other notable developments, KBR-MC Investment, a joint venture between Mitsubishi Corporation and Kellogg
Brown & Root, Inc. (KBR), became an equity partner in Chiyoda and will join Mitsubishi
Corporation and the Bank of Tokyo-Mitsubishi, Ltd., in implementing Chiyoda’s ongoing
renewal program.

1

A Message from the Management

Naoyoshi Uehara
Chairman (left),
Kiyomitsu Nishio
President

Chiyoda is on a clear

path toward becoming

Dear shareholders, employees, and friends,

In summary, our goal was to provide a

I succeeded Masato Kitagawa as president

fresh start for fiscal 2000 and not carry for-of Chiyoda Corporation on May 1, 1999. In

ward the burdens of the past.

addition to looking back over the past

the engineering andconstruction companyof choice, with globally

recognized capabilities,

and the Company isbringing all its resources

into alignment withyear’s performance, I would like to convey

most of our objectives; however, the process

our vision of a new Chiyoda that has thehas not come without some bitter medicine.

competitive edge to succeed in the next

We have had to sell off certain major assets

millennium.

and realize losses on our investment secu-

I am pleased to report that we maderities. Although we recorded revenues ofnotable progress in several key areas¥278.0 billion from completed projects andtoward restoring Chiyoda’s financial sound-became profitable in completed projects

ness during fiscal 1999, ended March 31,

for the first time in two fiscal years, I am by

1999. In brief, our objectives were:no means satisfied with these results. We• To complete unprofitable large-scaleposted a net loss of ¥11.6 billion for fiscal

projects

1999, and I regret to inform our sharehold-• To implement appropriate provisions for

ers that once again we will not be paying

the amortization of nonperforming assets

dividends for the year.

• To reinforce sound managerial principles

this vision.

2

CHIYODA CORPORATION

I believe that we have accomplished

Looking forward, the continued weak-in our subsidiaries and affiliates

ness in the domestic market, and in Asian• To implement the necessary measures tomarkets in general, presents a significant

streamline the headquarters’ operations

challenge for new orders in fiscal 2000.

Project cancellations, postponements,• To build a dynamic organization andI would like to take this opportunity toand reduced capital spending by our cli-develop employees with the skill setscomment on our Y2K readiness. With refer-ents have characterized our primary mar-to compete in global markets

ence to Japanese government Y2K compli-

kets for the last three years. This trend• To put in place an effective and motivat-

ance guidelines, we have created a task

looks to continue through fiscal 2000. Our

ed management team that will ensure theforce to address the Y2K challenge andchallenge will be to produce opportunities

continuity and success of the Company

formulated appropriate countermeasures.

through innovative contracting arrange-• To make an enterprisewide effort to raise

These countermeasures have beenments and technology.

our participation in environmental protec-

designed to ensure Y2K readiness in alltion projects

internal systems and prevent Y2K-related

tions described above and to support oper-

Our goal is to become the engineering

problems in plant equipment and current

ations during fiscal 2000, we have received

and construction company of choice, withprojects. We have already attained Y2K

a capital increase from third parties ofglobally recognized capabilities. We arecompliance in all internal systems and are¥11.3 billion. Allow me to express my sin-bringing all our resources into alignment

working toward fulfillment of the remaining

cere gratitude to Mitsubishi Corporation,with this vision. We have reinforced thecountermeasures.

the Bank of Tokyo-Mitsubishi, Ltd., andimportance of strengthening the capabilities

other shareholders for supporting us withof all employees, leveraging our technology

appreciation to our shareholders andadditional capital during these difficult

portfolio, and acquiring new technologies

employees for your support and under-times. In addition, Chiyoda has received

with global potential. At the same time, we

standing. The road ahead will be difficult;equity participation from KBR-MC Invest-

are fostering closer relationships with cus-

however, with your continued support I am

ment, a joint venture between Mitsubishi

tomers to better understand their require-confident that we can establish Chiyoda as

Corporation and Kellogg Brown & Root,ments and thus improve our ability to servea global leader in the 21st century.

Inc. (KBR). I am pleased to report thatthose needs more accurately and faster.

KBR will join Mitsubishi Corporation andThis proactive approach to our business is

the Bank of Tokyo-Mitsubishi in helping

at the core of the dynamic organization we

Chiyoda continue its renewal process.

are becoming.

In consideration of the prevailing condi-

In closing, I would like to express my

July 1999

There are many challenges facing the

Meanwhile, finding solutions to envi-

new Chiyoda. As president, I have priori-ronmental problems is a key issue both

Kiyomitsu Nishio

tized our goals as follows:in Japan and around the world. It is

President• To post net positive income on a non-Chiyoda’s social responsibility as a leading

consolidated basis during fiscal 2000

engineering and construction company to• To stress client satisfaction at all levels of

answer these needs. I am proud to notethe organization to foster customer loyalty

that Chiyoda boasts a number of superior• To provide differentiation through a tech-technologies, and we are now realigning

nology- and market-oriented focus that

our sales network to have “One face to theaggressively acquires and leverages

customer” in addressing such evolving

technology

market requirements.

3

Review of Operations

PETROLEUM-, PETROCHEMICAL-, AND GAS-RELATED INDUSTRIESHYDROCARBON SECTOR
Chiyoda’s HPI Consoli-

dated Division is lever-aging its distinctive

competence in engi-

neering to be a long-term partner to its

customers by partici-

pating in projects inpetroleum and otherindustries from theearliest phases of proj-

ect development.

4

CHIYODA CORPORATIONIn Ras Laffan, Qatar, Chiyoda completed the third train at an LNG plant operated by Qatar Liquefied Gas Company
Limited, which granted provisional acceptance to Chiyoda on January 31, 1999. LNG produced at this plant will be
exported to four electric power and three gas companies in Japan.

In the HPI Consolidated Division, Southeast Asian markets continued to suffer theeffects of financial and economic crises
precipitated by the currency depreciations
that began in late 1997. Investment in new
projects has been delayed throughout theregion as well in Latin America and the CIS
region, while slack demand has led to adrop in crude oil prices. In our key marketsof the Middle East and Southeast Asia,
capital tie-ups between major petrochemical companies in the United States andEurope have led to a revision of several
large projects.
To strengthen our competitive edge
under such difficult conditions, Chiyoda
has been applying Engineering Procurement
Consumption Management (EPCM) guidelines to our hydrocarbon business. EPCM
has already proven successful in the
Non-HPI Consolidated Division and will

help create a business structure thatis resistant to any fluctuation in market
conditions. At the same time, we will befurther enhancing our cost-competitiveness by deploying low-cost engineering
methodologies.
• Asia and China
Despite the inhospitable market environment in Asia, including China, Chiyoda
recorded several noteworthy accomplishments during fiscal 1999. In Malaysia, forexample, a large-scale grass-roots oil refinery built for Malaysian Refining Company
Sdn Bhd (MRC) in Melaka began commercial production during the year under review.
The refinery has a capacity of 100,000 barrels per day.
In Singapore, we won a contract toprovide a condensate splitting unit to
Shell Eastern Petroleum Pte. Ltd. andPetrochemical Corporation of Singapore.

On March 31, 1999, Chiyoda received provisional acceptance of agrass-roots petroleum refinery from Malaysian Refining Company Sdn
Bhd (MRC). With a daily capacity of 100,000 barrels, the conversioncomplex refinery consists of 16 units, including a hydrocracker anda delayed coker.

We also completed construction of a Singapore manufacturing plant for Chevron
Chemical (Far East) Private Ltd. in October
1998.
In India, we intend to increase our profile
in LNG bases for receiving-infrastructureenergy and other key areas.
In China, a number of major projects
have been postponed or canceled. We arethus focusing on projects in underdeveloped areas of the country.
• Middle East and Africa
Chiyoda has several major projects under
way in the Middle East, which remains a
strategic area for the Company in termsof business volume. During the year underreview, Chiyoda completed the third train
with an annual processing capacity of
two million tons for an LNG plant built for
Qatar Liquefied Gas Company Limited in
Ras Laffan, Qatar.
Among other noteworthy developments,
we completed a paraxylene and benzene
manufacturing facility for Arabian Industrial
Fibers Company in Yanbu, Saudi Arabia.
The facility’s annual capacities of paraxylene and benzene are 375,000 tons and
349,000 tons, respectively.
• Other Regions
In Bratislava, Slovakia, Chiyoda completed
a petroleum refinery for Slovnaft A.S. The
facility is equipped with a vacuum gas oilhydrotreater that can process 22,000 barrels
per day and a 924,000NM3 per day hydrogen plant. We have received 11 orders forfeasibility studies from NEDO, the Ministryof International Trade and Industry, and thePlant Association. Chiyoda will cooperatewith its clients to convert the most feasible
projects into engineering contracts. In

addition, we are encouraged by the prospectsof winning orders for natural gas projects
in Sakhalin and other parts of Russia.
• Japan
We completed several significant projects
in Japan, despite a business climate characterized by a reluctance to invest in newplant and equipment. In the petroleum sector, we completed facilities for the storage
and transfer of kerosene and gasoline
for Nisseki Engineering Co., Ltd., and abenzene-reduction facility for Shoseki
Engineering Co., Ltd. In addition, we completed a capacity expansion project for achemical plant owned by Kureha Chemical
Industry Co., Ltd.
Furthermore, we completed two projects
in Ohgishima, in Kawasaki. The first was a
pipe-laying contract at a Tokyo Gas Co., Ltd.,equipment yard and the other was for uptake
pipe facilities for an NKK Corp. factory.
• Outlook and Strategies
Chiyoda is upgrading its capabilities toserve the needs of oil-producing nations,leading petroleum companies, and major
chemical companies. We are honing ourcompetitiveness in projects for debottlenecking and upgrading existing facilities
as well as upstream contracts for crude oiland natural gas field development. We aremoving up the value chain and participating in our clients’ projects in petroleum
and other industries from the earliest
planning phases.
Changes to regulations in Japan concerning the inspection of facilities are creating
new opportunities for Chiyoda to provide
consulting on effective strategies for facilities management and maintenance. Our
approach to business in the future will be

to leverage our distinctive competence
in engineering to be a partner in the longterm business planning of our customers.
• Technology Spotlight
Chiyoda’s skills in the engineering andconstruction of bisphenol plants using
CT-BISA processes and acetic acid plants
using Acetica processes are a key differentiator for the Company. With signs ofrecovery apparent in Southeast Asia, Chiyoda
posted a number of successes during theyear under review. In addition, we were
contracted to expand the SHELL ADIP
process capacity at the Sendai Refineryof Tohoku Oil Co., Ltd., and were awarded
orders for pilot plants from public- andprivate-sector customers. Our outlook forthis business is also bright. We are confident that we will be able to win orders forsuch plants in Korea, China, Taiwan, andthe Middle East in the near future.

In January 1999, Chiyoda completed the construction ofa benzene reduction facility at the Yamaguchi Refineryof Seibu Oil Company Limited.

5

NON-HYDROCARBON SECTOR
Chiyoda’s Non-HPI

Consolidated Division

is refocusing its project

portfolio on high-value-

added businesses. The

Company will offer
Chiyoda completed “Lost Legend,” the first live show attraction of its type in Japan, at the Shima Spain Village theme
park. A festive demonstration was held to celebrate the opening in February 1999.

innovative solutions inenvironmental systems

while solidifying its

base in automotive

plants, theme parks,and other sectors.

During fiscal 1999, Chiyoda’s Non-HPI
Consolidated Division recorded healthy
growth in orders for theme park construction. Developers are striving to keep pacewith diversifying consumer needs by refurbishing existing facilities and are thus creating new and multipurpose entertainmentand shopping complexes. However, realestate development as a whole continued
to be lackluster.
Meanwhile, the worldwide restructuringof the automotive industry has fostered aresurgence in investment in Asia for globalscale manufacturing facilities. Also, Chiyoda posted firm results from manufacturersof pharmaceuticals and food products.
• Environmental Systems
In April 1999, a major plant to convert
waste plastic into oil for Rekisei Koyu K.K.,
in Niigata Prefecture, went into commercial operation, the first of its kind in Japan.

6

CHIYODA CORPORATION

Chiyoda intends to leverage this experience to win new contracts in the future.
A new law regarding receptacle recycling
will come into effect in Japan from April
2000 and should boost demand for facilities
to recycle plastic into oil. Regarding activities related to electric power and energyrelated fields, Chiyoda is working to win
new contracts for emissions and ash processing facilities at thermal power plants.
Many existing facilities are over 25 years
old and thus Chiyoda is encouraged by
the strong latent demand in this area.
• Automotive Plants
In contrast to the exceptionally difficult
conditions in the manufacturing sector asa whole, capital investment among automakers has experienced a mild upward trend.
By region, rising investment in Europe
compensated for the recent sluggishnessin Asia. During the year under review,

In April 1999, Chiyoda completed Esso (Zhejiang) Co., Ltd.’s second
lubrication oil blending plant in China.

however, the Asian markets outside Japan
showed signs of recovery as investment
projects in Thailand and other parts ofSoutheast Asia, China, and India camecloser to launch.
Megamergers and capital tie-ups arereshaping the competitive landscape in theautomotive industry. We believe that suchdevelopments will create opportunities
regarding investments to maximize thereturn on R&D expenditures and enhancethe environment-friendliness of vehicles.
Apart from the move toward the standardization of vehicle platforms, we do not
expect the industry consolidation to havea negative impact on the engineering ofvehicle and engine production lines.
During fiscal 1999, Chiyoda received
orders from General Motors (Thailand) Ltd.
for a mono-cab die plant, from General
Motors India Ltd. for a body shop plant,
and from Opel Polska Sp. Zo.o for a general assembly plant in Poland.
• Theme Parks and Other Sectors
Although the recession in Japan has hurttheme parks in regional markets, investment in major theme park projects has
been robust. Most notably, Chiyoda wasawarded a contract for the design, construction, and installation of rides at amajor theme park complex being built inJapan. Investments in other major projects
are also expected to create a favorable
environment for Chiyoda.
We aim to compensate for eventual
downturns in the investment cycle bywinning contracts for renewing andenhancing theme parks. A number oflarge amusement complexes are being
planned in Southeast Asia, China, andthe Middle East. We anticipate that suchprojects will be launched in tandem witheconomic recovery in those regions.
During the year under review, we wereawarded a contract by the Department of
Foreign Affairs and International Trade tobuild housing facilities for the Canadianembassy in Japan.
• Pharmaceuticals and Fine Chemicals
Pharmaceutical companies have been
investing intensively to make their facilities
compliant with global standards for safety.
Chiyoda is at the forefront of these developments and is meeting client needs forthe design and construction of new plantsthat conform to the trend toward the international harmonization of regulatory
standards.
In the fine chemical area, capital investment by producers of monomers and otherbulk chemicals in Asian markets outside
Japan was down as a result of general
economic malaise. However, capital
expenditures are rising in higher-valueadded fine chemicals, particularly inJapan. We expect that stronger companies will continue to invest aggressively
and boost the number of orders awarded
to Chiyoda.
During fiscal 1999, Chiyoda received sixorders for medium-sized projects for pharmaceuticals as well as a contract to build afactory in Hyogo Prefecture for Unitika, Ltd.
• Space Development
In the area of space development, Chiyoda
is providing equipment for the JapaneseExperimental Module of an international
space station to the National Space Development Agency of Japan (NASDA). The station is scheduled to become operational

Chiyoda completed construction of the one-million-kilowatt
Haramachi thermal power station no. 2 unit for Tohoku ElectricPower Co., Inc. The Company constructed and installed Chiyoda
Thoroughbred 121 flue gas desulfurization units, gas-gas heaters,
and desulfurization fans.

in 2001. We expect to generate modest, but
stable, orders for facilities in which experiments will be conducted on plant and animal cells under microgravity conditions.
• Technology Spotlight
The expanding market for products withenvironment-friendly features is attracting
attention in both business communities
and local governments. Chiyoda has been
riding this trend to win orders for its CT-121
desulfurization and anti-emission equipment, Bio Finer water processing equipment, and CTG construction methods.
Chiyoda has transferred its CT-121
technologies to contractors in Europe
and Korea, which will generate royalty
income in the future. We are optimistic
about securing a contract for the basic
design and licensing of CT-121 in Europe
in fiscal 2000. In a related area, we aredeveloping technologies to decompose
dioxins during refuse processing.

In August 1998, Chiyoda completed the first copper smelting plantin Indonesia and handed it over to P.T. Smelting Company, a subsidiary of Mitsubishi Materials Corp. Equipped with the latest technologies, the plant has an annual output of 200,000 metric tons.

7

Main Projects
As of March 31, 1999

PETROLEUM-, PETROCHEMICAL-, AND GAS-RELATED INDUSTRIESHYDROCARBON SECTORNEW CONTRACTS• Shell Eastern Petroleum Pte. Ltd.
Project type: Condensate Splitter Unit
Location: Bukom, Singapore
Capacity: 70,000 BPSD
Scheduled completion: June 2000
• Kureha Chemical Industry Co., Ltd.
Project type: Petrochemical plant
Location: Fukushima, Japan
Capacity: Capacity-up 5,000 t/y
Scheduled completion: October 1999
• Tokyo Electric Power Company
Project type: LNG receiving terminal
Location: Chiba, Japan
Scheduled completion: July 2001
• Mitsubishi Heavy Industries Ltd./
Toho Gas Co., Ltd.
Project type: LNG process piping work
Location: Aichi, Japan
Scheduled completion: October 2001
• BG plc
Project type: Front-end engineering
design for LNG receiving terminal
Location: Pipavav, India
Capacity: 2.5 million t/yScheduled completion: September 1998
BACKLOG OF CONTRACTS• China Petrochemical
Development Corp. (CPDC)
Project type: Caprolactam plant
Location: Kaohsiung, Taiwan
Capacity: 120,000 t/y
Scheduled completion: December 1999
• Exxon Chemical Singapore Private Ltd.
Project type: Ethylene plant
Location: Chawan, Jurong Island,
Singapore
Capacity: 800,000 t/y
Scheduled completion: September 2000

8

• Saudi Chevron Petrochemical Co.
Project type: Benzene plant andcyclohexane plant
Location: Al-Jubail Industrial City,
The Kingdom of Saudi Arabia
Capacity: 480,000 t/y (benzene plant),
220,000 t/y (cyclohexane plant)
Scheduled completion: May 1999
• Ministry of Oil and Gas Industry andMineral Resources
Project type: Naphtha hydrotreater,reformer with continous catalytic
reforming (CCR), and utilities andoff-site facilities
Location: Turkmenbashi, Turkmenistan
Capacity: 750,000 t/y (naphtha hydrotreater), 750,000 t/y (reformer with CCR)
Scheduled completion: December 1999
• Qatar Fuel Additives Company Limited(QAFAC)
Project type: Methanol/MTBE plant
Location: Mesaieed, Qatar
Capacity: 2,500 t/d (methanol),
1,830 t/d (MTBE)
Scheduled completion: June 1999
• China PetrochemicalInternational Company
Project type: PTA plant
Location: Luoyang, China
Capacity: 225,000 t/y
Scheduled completion: June 2000
• Oman LNG L.L.C.
Project type: LNG plant
Location: Qalhat, Oman
Capacity: 3,300,000 t/y x 2
Scheduled completion: May 2000
• Teijin Polycarbonate Singapore Pte. Ltd.
Project type: Polycarbonate plant
Location: Sakra, Singapore
Capacity: 60,000 t/y
Scheduled completion: 1999

• Eastern Petrochemical Company (SHARQ)
Project type: Ethylene glycol
production plant
Location: Al-Jubail Industrial City,
The Kingdom of Saudi Arabia
Capacity: 450,000 t/y
Scheduled completion: August 2000

• Fuji Oil Co., Ltd.
Project type: Air pre-heater unit
Location: Chiba, Japan
Capacity: Flue gas 53,500 kg/h,
air 47,200 kg/h
Scheduled completion: June 1999

• State Concern Azerchimia
Project type: Utility modernization of
ethylene plant
Location: Sumgait, Azerbaijan
Scheduled completion: March 2001

• Oita LNG Co., Inc.
Project type: Piping facilities expansion
Location: Oita, Japan
Capacity: 140,000 kl (storage)
Scheduled completion: June 1999

CHIYODA CORPORATIONPROJECTS COMPLETED• Malaysian Refining Company
Sdn Bhd (MRC)
Project type: Petroleum refinery
Location: Melaka, Malaysia
Capacity: 100,000 BPSD
Completion: September 1998
• Qatar Liquefied Gas
Company Limited
Project type: LNG plant
Location: Ras Laffan, Qatar
Capacity: 2,000,000 t/y (3rd train)
Completion: April 1998
• Chevron Chemical (Far East) Private Ltd.
Project type: Lubricant additives
manufacturing plant
Location: Pulau Sakra, Singapore
Capacity: More than 100,000 t/yCompletion: August 1998
• Shoseki Engineering & Construction Co.,
Ltd./Showa Yokkaichi Sekiyu Co., Ltd.
Project type: Benzene reduction plant
Location: Mie, Japan
Capacity: Bensat 471 t/d,
Sulfolane revamp 971 t/dCompletion: June 1998
• Seibu Oil Company Limited
Project type: Sulfolane extraction unit
Location: Yamaguchi, Japan
Capacity: 453 t/dCompletion: November 1998
• Nippon Steel Corporation/Nihonkai
LNG Co., Ltd.
Project type: Piping work for LNG
Location: Niigata, Japan
Completion: August 1998

NON-HYDROCARBON SECTORNEW CONTRACTS• Sumika Fine Chemicals Co., Ltd.
Project type: Bulk pharmaceutical plant
Location: Okayama, Japan
Scheduled completion: November 1999
• Central Glass Co., Ltd.
Project type: Bulk pharmaceutical plant
Location: Yamaguchi, Japan
Capacity: 800 t/y
Scheduled completion: March 2000
• Konica Corporation
Project type: Electronic device products
plant
Location: Hyogo, Japan
Scheduled completion: November 1999

• Hokuriku Electric Power Company
Project type: Expansion of water treatment facilities
Location: Fukui, Japan
Capacity: 1,200 m3/d
Scheduled completion: October 2000
• Comany (Nanjing) Industries Co., Ltd.
Project type: Paint facility for partition wall
Location: Nanjing, China
Scheduled completion: September 1999
• Japan Nuclear Fuel Ltd.
Project type: Utility facility
Location: Aomori, Japan
Scheduled completion: January 2003

• Oriental Land Co., Ltd.
Project type: Ride attractions (theme park)
Location: Chiba, Japan
Scheduled completion: August 2001

• Sumitomo Metal Mining Co., Ltd.
Project type: Installation of vessels forseparation facility
Location: Aomori, Japan
Scheduled completion: August 2001

• Opel Polska Sp. Zo.o
Project type: G/A shop
Location: Gliwice, Poland
Capacity: 54,000 vehicles/yScheduled completion: January 2000

• DMAX Ltd.
Project type: Greenfield engine plant
Location: Moraine, Ohio, U.S.A.
Capacity: 200,000 units/yScheduled completion: December 1998

• General Motors (Thailand) Ltd.
Project type: Die/Body & G/A shop
Location: Rayong, Thailand
Capacity: 45,000 vehicles/yScheduled completion: May 2000

• National Space Development Agencyof Japan (NASDA)
Project type: Development of image
processing unit
Location: Japan
Scheduled completion: August 2000

• General Motors India Ltd.
Project type: Body shop
Location: Halol, India
Capacity: 14,000 vehicles/yScheduled completion: December 1999
• Department of Foreign Affairs andInternational Trade
Project type: Canadian embassy staff
quarters
Location: Tokyo, Japan
Capacity: 4,950 m2 (total floor area)
Scheduled completion: February 2000
BACKLOG OF CONTRACTS• Kirin Kunpeng (China)
Bio-Pharmaceutical Co., Ltd.
Project type: Parenteral drug facility
Location: Pudong new area, Shanghai,
China
Scheduled completion: September 1999
• Dainippon Pharmaceutical Co., Ltd.
Project type: Solid dosage formulation
facility
Location: Mie, Japan
Scheduled completion: April 1999
• Kuraray Co., Ltd.
Project type: Multipurpose organic
synthesis plant
Location: Niigata, Japan
Scheduled completion: November 1998

• Gujarat Pipavav Port Limited
Project type: Ship-breaking yard
Location: Pipavav, Gujarat, India
Capacity: 8 VLCC/y
Scheduled completion: October 1999
• Kaihatsu Denki Co., Ltd.
Project type: Ash handing facility
Location: Kanagawa, Japan
Scheduled completion: August 2002
PROJECTS COMPLETED• Tohoku Electric Power Co., Inc.
Project type: Boiler flue gas
desulfurization plant
Location: Fukushima, Japan
Capacity: 1,000 MW
Completion: July 1998
• Esso (Tianjin) Co., Ltd.
Project type: LOBP
Location: Tianjin, China
Capacity: 250,000 t/yCompletion: September 1998

• P.T. Smelting Company
Project type: Copper smelter andrefinery complex
Location: Gresik, East Java, Indonesia
Capacity: 200,000 metric tons of cathodecopper/yCompletion: August 1998
• Myanmar Ivanhoe Copper
Company Ltd.
Project type: SX-EW process copper plant
Location: Monywa, Myanmar
Capacity: 25,000 metric tons of cathodecopper/yCompletion: November 1998
• Teijin Limited
Project type: Pharmaceutical research
centerLocation: Yamaguchi, Japan
Completion: October 1998
• Teijin Limited
Project type: Biological research center
Location: Tokyo, Japan
Completion: August 1998
• Shima Spain Village Co., Ltd.
Project type: Theater attraction
Location: Mie, Japan
Capacity: 2,600 persons/1 show
Completion: February 1999
• Opel Polska Sp. Zo.o
Project type: G/A shop
Location: Gliwice, Poland
Capacity: 70,000 vehicles/yCompletion: September 1998
• Isuzu Motors Polska Sp. Zo.o
Project type: Procurement service ofengine plant
Location: Tychy, Poland
Capacity: 300,000 units/yCompletion: January 1999
• P.T. Astra Isuzu Casting Corporation
Project type: Casting factory
Location: Karawang, Indonesia
Capacity: 12,000 t/yCompletion: June 1998
• Shonan Unitech Corporation
Project type: Stamping factory
Location: Fukushima, Japan
Completion: June 1998

• Esso (Zhejiang) Co., Ltd.
Project type: LOBP
Location: Ningbo, China
Capacity: 270,000 t/yCompletion: November 1998

9

Board of Directors

Chairman
Naoyoshi Uehara*(1)

Senior Managing
Director
Toshikuni Hirai* (4)President
Kiyomitsu Nishio*

(4)

(2)

Executive Vice President
Nicholas C. Gallinaro* (3)(1)

10

CHIYODA CORPORATION

(2)

(3)

*Representative Director

Managing Directors
Hiroshi Ohtsuka
Minoru Matsushima
Nobuo Seki
Naotake Naritomi
(8)

(5)

Corporate Auditors
(5)
(6)
(7)
(8)

Michihiko Kawana
Hisatomi Uga
Kazuo Takayanagi
Tsuneyoshi Kajiwara

Directors

(7)

(6)

Albert J. Stanley
Shoei Kaneko
Ken Suzuki
Yoshihiro Shirasaki
Takashi Kubota
Yoshio Ishiwata
Akira Kadoyama
Yosuke Norimitsu
Hiroshi Kobayashi
Masato Miyamori(As of June 29, 1999)

11

Financial Section
Consolidated Five-Year Financial Summary
Chiyoda Corporation and Consolidated Subsidiaries
Years ended March 31

Millions of Yen

1999

1998

1997

1996

1995

For the Year:
Revenues ................................................................................... ¥330,456
Costs and expenses.................................................................. 340,990
Income (loss) before income taxes and other items ............. (10,534)
Net income (loss)...................................................................... (11,623)¥308,888
358,684(49,796)(51,795)¥451,647
501,952(50,305)(53,320)¥395,874
392,425
3,449
1,597

¥346,603
337,475
9,128
3,813

At Year-End:Total assets ............................................................................... ¥213,920
Total shareholders’ equity .......................................................
6,208
Working capital ......................................................................... (22,942)
Current ratio (%) .......................................................................
87.7
Long-term debt .........................................................................
13,518¥257,746
5,931(29,624)
87.4
7,569

¥350,537
57,761
20,945107.6
8,401¥352,913
112,81774,019133.4
8,936¥336,422
112,771
104,795
159.2
37,081¥8578¥000,020
578

195,224

195,224

Per Common Share (Yen):
Net income (loss)...................................................................... ¥Shareholders’ equity ................................................................
Other Statistics:
Number of shares outstanding* (thousands) ........................
*At year-end

12

CHIYODA CORPORATION

(58)
25

248,357¥(265) ¥
30

195,224(273)
296
195,224

Consolidated Financial Review

Operating Results
In fiscal 1999, ended March 31, 1999, total revenues
on a consolidated basis reached ¥330,456 million(US$2,754 million), an increase of 7.0% from theprevious fiscal year. Revenue from construction
contracts rose ¥8,758 million, or 2.9%, from the previous term, to ¥312,234 million (US$2,602 million),and accounted for 94.5% of total revenues.
The cost of construction contracts decreased
6.3%, to ¥308,703 million (US$2,573 million). The
cost of construction contracts as a percentage of
construction contract revenues was 98.9%, an
improvement of 9.7 percentage points from theprevious fiscal year due to the completion of anumber of unprofitable projects. Thanks to efforts
to streamline operations, selling, general andadministrative expenses, at ¥16,480 million(US$137 million), were slightly below the previous
year, despite an increase in business volume. As aresult, loss before income taxes and other items
decreased ¥39,262 million, to ¥10,534 million(US$88 million), and net loss fell ¥40,172 million, to¥11,623 million (US$97 million). Net loss per common share decreased ¥207 per share from the previous period, to ¥58 (US$0.48). In light of thisperformance, the Company decided to forgo thepayment of dividends for fiscal 1999.
During the term, the Company was awarded a
total of ¥83,462 million (US$696 million) in contracts. Overseas contracts accounted for ¥35,347
million (US$295 million), or 42.4% of the total,
with domestic contracts making up the remaining¥48,115 million (US$401 million). The backlog ofcontracts at March 31, 1999, stood at ¥238,722 million (US$1,989 million), with domestic contracts
accounting for ¥115,981 million (US$967 million) of
the total and overseas contracts for ¥122,741 million (US$1,023 million).

Financial Position
As of March 31, 1999, total assets amounted to¥213,920 million (US$1,783 million), ¥43,826 million
lower than a year earlier. Underpinning this decline
was a ¥42,137 million fall in total current assets, to¥163,520 million (US$1,363 million). The fall in total

current assets was due mainly to a ¥22,169 million
downturn in notes and accounts receivable—trade,to ¥37,116 million (US$309 million), and a ¥16,493
million contraction in costs and estimated earnings
on long-term construction contracts, to ¥9,668 million (US$81 million). Meanwhile, total investments
and other assets rose ¥10,099 million, to ¥35,817
million (US$298 million), primarily from an
upswing in long-term receivables—net.
On the other side of the balance sheet, total current liabilities decreased ¥48,819 million, to¥186,462 million (US$1,554 million), mainly
because of reductions in short-term bank loans andnotes and accounts payable—trade. As a result, thecurrent ratio was up slightly from the previous fiscal year-end, to 87.7%.
Total shareholders’ equity rose ¥277 million, to¥6,208 million (US$52 million), reflecting a capitalincrease received during the fiscal year. The shareholders’ equity ratio was 2.9%, up slightly from ayear earlier.

Cash FlowsNet cash used in operating activities totaled ¥9,508
million (US$79 million), comprising ¥11,623 million(US$97 million) in net loss and ¥4,294 million(US$36 million) in outflows from non-cash adjustments as well as ¥6,409 million (US$53 million)
provided by net changes in operating assets andliabilities.
Net cash provided by investing activities amounted to ¥29,951 million (US$250 million), up ¥10,666
million, due primarily to proceeds from sales ofproperty, plant and equipment—net of ¥24,197 million (US$202 million).
Net cash used in financing activities totaled¥11,362 million (US$95 million), comprising cash
outflows for the repayment of short-term bankloans and the repayment of long-term debt, which
offset inflows from proceeds from long-term debt
and proceeds from the issuance of common stock.
As a result, cash and cash equivalents, end ofyear, increased ¥9,081 million, to ¥49,130 million(US$409 million).

13

Consolidated Balance Sheets
Chiyoda Corporation and Consolidated Subsidiaries
March 31, 1999 and 1998ASSETS

Thousands of
U.S. Dollars(Note 1)Millions of Yen

1999

1998*

1999

¥ 32,812$ 316,133

Current Assets:
Cash .......................................................................................................................... ¥ 37,936
Time deposits...........................................................................................................

11,194

7,237

93,283Marketable securities (Notes 5 and 6)....................................................................

40,27846,454

335,650

Notes and accounts receivable—trade (Notes 3 and 6) .......................................

37,11659,285309,300

Costs and estimated earnings onlong-term construction contracts (Note 4)...........................................................

9,668

26,16180,567

Allowance for doubtful accounts ...........................................................................

(177)

(413)

(1,475)

Costs of construction contracts in process (Note 4) .............................................

18,211

20,784

151,758

Prepaid expenses and other (Note 3).....................................................................

9,294

13,33777,450Total current assets .........................................................................................

163,520

205,657

1,362,666

Land ..........................................................................................................................

4,089

6,883

34,075

Buildings and structures .........................................................................................

11,022

31,49291,850Machinery and equipment ......................................................................................

17,342

19,441

144,517

Construction in progress.........................................................................................

10

37

83

Property, Plant and Equipment (Note 6):

Total ..................................................................................................................

32,46357,853

270,525

Accumulated depreciation ......................................................................................

(17,880)(31,482)(149,000)

Net property, plant and equipment................................................................

14,583

26,371

121,525

Investments and Other Assets:
Investment securities:
Non-consolidated subsidiaries and associated companies .............................

2,630

4,964

21,917

Other (Note 5) ......................................................................................................

2,393

2,917

19,942

Total investment securities .............................................................................

5,023

7,881

41,859Long-term loans—net (Note 3) ...............................................................................

3,986

4,309

33,216Long-term receivables—net (Note 3) .....................................................................

18,501

6,322

154,175

Other investments (Note 6).....................................................................................

8,406

7,012

70,050Allowance for doubtful accounts ...........................................................................

(99)

(78)

(825)

Translation adjustments .........................................................................................
Total investments and other assets ...............................................................

272
35,81725,718298,475

Total .............................................................................................................................. ¥213,920¥257,746$1,782,666*Reclassified to conform to 1999 classifications
See notes to consolidated financial statements.

14

CHIYODA CORPORATION

LIABILITIES AND SHAREHOLDERS’ EQUITY

Thousands of
U.S. Dollars(Note 1)Millions of Yen

1999

1998*

1999

¥111,725$ 677,592

Current Liabilities:
Short-term bank loans (Note 6) .............................................................................. ¥ 81,311
Current portion of long-term debt (Note 6) ...........................................................

3,683

1,844

30,692

Notes and accounts payable—trade ......................................................................

59,66475,870497,200

Advance receipts on construction contracts .........................................................

28,21632,544

235,133

Allowance for financial support to subsidiaries....................................................

2,997

1,481

24,975

Accrued expenses and other ..................................................................................

10,591

11,81788,258

Total current liabilities.....................................................................................

186,462

235,281

1,553,850

Long-term debt (Note 6)..........................................................................................

13,518

7,569

112,650Retirement benefits (Note 7)...................................................................................

6,952

8,541

57,933

Other non-current liabilities ....................................................................................

62

156

Translation adjustments .........................................................................................

34

Total non-current liabilities .............................................................................

20,566

16,266

171,383

Minority Interest ..........................................................................................................

684

268

5,700

Shareholders’ Equity (Note 8):
Common stock, ¥50 par value—authorized, 780,000 thousand shares in 1999
and 600,000 thousand shares in 1998;
issued and outstanding, 248,357 thousand shares in 1999
and 195,224 thousand shares in 1998 ..................................................................

20,385

14,753

169,875

Additional paid-in capital ........................................................................................

23,65418,022

197,116

Deficit ........................................................................................................................

(37,831)(26,843)(315,258)

Non-Current Liabilities:

517
283

Contingent Liabilities (Notes 3 and 11)

Treasury stock ..........................................................................................................
Total shareholders’ equity ..............................................................................

(1)
6,208

5,931

51,733

Total .............................................................................................................................. ¥213,920¥257,746$1,782,666

15

Consolidated Statements of Operations
Chiyoda Corporation and Consolidated Subsidiaries
Years ended March 31, 1999 and 1998

Thousands of
U.S. Dollars(Note 1)Millions of Yen

1999

1998*

1999

¥303,476$2,601,950

Revenues:
Construction contracts (Note 3).............................................................................. ¥312,234
Interest and dividend income (Note 3) ..................................................................

1,689

2,198

14,075

Foreign exchange gain—net ...................................................................................

316

2,743

2,633

Gain on sales of property, plant and equipment ..................................................

14,663

1,388

122,192

Equity in earnings (loss) of associated companies...............................................

711(1,429)5,925

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

843

512

7,025

Total revenues .................................................................................................

330,456

308,888

2,753,800

Construction contracts ............................................................................................

308,703329,446

2,572,525

Selling, general and administrative .......................................................................

16,48016,589137,333

Interest ......................................................................................................................

1,935

1,845

16,125

Provision for doubtful accounts .............................................................................

1,769

4,413

14,742

Loss on sales of marketable securities ..................................................................

3,233

1,799

26,942and associated companies and investment securities .......................................

1,437

532

11,975

Provision for financial support to subsidiaries......................................................

1,515

1,481

12,625Additional retirement benefits paid to employees ...............................................

3,693

462

30,775

Other (Note 10) ........................................................................................................

2,225

2,117

18,541

Total costs and expenses ................................................................................

340,990358,684

2,841,583

Loss before Income Taxes and Other Items .............................................................

10,534

49,79687,783

Income Taxes (Note 9) ................................................................................................

1,151

1,967

9,592

Loss before Minority Interest andEquity in Loss of Associated Companies ................................................................

11,68551,763

97,375

Minority Interest in Net Income (Loss) of Associated Companies .........................

62

(32)

517

Net Loss........................................................................................................................ ¥ 11,623¥ 51,795

Costs and Expenses:

Provision for loss on investment in subsidiaries*Reclassified to conform to 1999 classifications
See notes to consolidated financial statements.

16

CHIYODA CORPORATION

58¥

96,858

U.S. Dollars(Note 1)Yen

Net Loss per Common Share (Note 14)..................................................................... ¥

$

265

$

0.48

Consolidated Statements of Shareholders’ Equity
Chiyoda Corporation and Consolidated Subsidiaries
Years ended March 31, 1999 and 1998

Thousands

Balance, April 1, 1997 .....................................................

Millions of Yen

Shares ofCommonStockCommonStock

Additional
Paid-in
Capital(Deficit)*
Retained*
Earnings*

TreasuryStock

195,224¥14,753¥18,022¥24,987¥(1)

Net loss........................................................................

(51,795)

Bonuses to directors and corporate auditors...........

(35)

Balance, March 31, 1998 ................................................

195,224

14,75318,02253,133

5,632

5,632

(26,843)(1)

Issuance of common stock (issued on March 30,
1999, at the price of ¥212 per share) .......................
Net loss........................................................................

(11,623)

Bonuses to directors and corporate auditors...........

(7)

Adjustment of retained earnings for newly
consolidated subsidiaries ........................................

642

Decrease in treasury stock .........................................
Balance, March 31, 1999 ................................................

1
248,357¥20,385¥23,654¥(37,831)¥0Thousands of U.S. Dollars (Note 1)
CommonStock

Additional
Paid-in
CapitalDeficit*

Treasury
Stock

Balance, March 31, 1998 .................................................................................... $122,942$150,183$(223,692)$(8)

Issuance of common stock (issued on March 30, 1999,
at the price of $1.77 per share) ....................................................................

46,93346,933Net loss ............................................................................................................

(96,858)

Bonuses to directors and corporate auditors ...............................................

(58)

Adjustment of retained earnings for newly
consolidated subsidiaries ............................................................................

5,350

Decrease in treasury stock .............................................................................
Balance, March 31, 1999 .................................................................................... $169,875

8$197,116$(315,258)$0*Reclassified to conform to 1999 classification
See notes to consolidated financial statements.

17

Consolidated Statements of Cash Flows
Chiyoda Corporation and Consolidated Subsidiaries
Years ended March 31, 1999 and 1998

Thousands of
U.S. Dollars(Note 1)Millions of Yen

1999

1998

Operating Activities:
Net loss........................................................................................................................ ¥(11,623) ¥(51,795)
Adjustments to reconcile net loss to net cashused in operating activities:
Depreciation and amortization ..............................................................................
3,126
3,767
Reversal of retirement benefits—net ....................................................................
(1,589)(678)
Provision for allowance for doubtful accounts—net ...........................................
356
4,257
Provision for financial support to subsidiaries ....................................................
1,515
1,481
Provision for loss on investment in subsidiaries andassociated companies and investment securities .............................................
1,437
530
Gain on sales of property, plant and equipment—net ........................................ (14,626)(1,132)
Loss on sales of marketable securities—net ........................................................
3,233
1,799
Loss on devaluation of marketable securities......................................................
990
1,672
Other—net ...............................................................................................................
1,264
1,372
Changes in operating assets and liabilities:
Decrease in notes and accounts receivable and costs
and estimated earnings on long-term construction contracts...................... 20,001
62,627
Decrease in costs of construction contracts in process ..................................
2,573
707
Increase in other assets ....................................................................................
(1,456)(2,191)
Decrease in notes and accounts payable—trade .............................................
(9,061) (44,592)
Increase (decrease) in advance receipts on construction contracts...............
(4,328)
11,423
Decrease in other liabilities ...............................................................................
(1,320)(3,435)1999$ (96,858)

26,050(13,242)2,966
12,625
11,975(121,883)
26,942
8,250
10,533

166,675
21,442(12,133)(75,508)(36,067)(11,000)

Net cash used in operating activities ............................................................

(9,508)(14,188)(79,233)

Investing Activities:
Proceeds from sales of marketable securities—net ................................................
Proceeds from sales of (purchases of) property, plant and equipment—net........
Net (increase) decrease in investment securities ....................................................
Net increase in long-term loans ................................................................................
Net decrease in long-term receivables .....................................................................

1,953
24,197
1,421
(221)
2,601

20,364
(358)
(249)
(472)

16,275
201,641
11,842(1,842)
21,675

Net cash provided by investing activities.....................................................

29,951

19,285249,591

Financing Activities:
Repayment of short-term bank loans .......................................................................
Proceeds from long-term debt ..................................................................................
Repayment of long-term debt ...................................................................................
Proceed from issuance of common stock ................................................................

(30,414)
10,000(2,212)
11,264(3,430)(253,450)
83,333(18,433)
93,866

Net cash used in financing activities ............................................................

(11,362)(5,189)(94,684)

Net Increase (Decrease) in Cash and Cash Equivalents..............................................

9,081

(92)

75,674

Cash and Cash Equivalents, Beginning of Year...........................................................

40,04940,141

333,742

Cash and Cash Equivalents, End of Year ..................................................................... ¥ 49,130¥ 40,049$ 409,416

Additional Cash Flow Information:
Interest paid ................................................................................................................ ¥ 1,995
Income taxes paid ......................................................................................................
1,199¥ 1,946
1,894$ 16,625
9,992

See notes to consolidated financial statements.

18

CHIYODA CORPORATION(1,759)

Notes to Consolidated Financial Statements
Chiyoda Corporation and Consolidated Subsidiaries
Years ended March 31, 1999 and 1998

1. Basis of Presenting Consolidated Financial Statements
The accompanying consolidated financial statements have been prepared in accordance with the provisions set forthin the regulations concerning consolidated financial statements issued by the Ministry of Finance and in conformity
with accounting principles and practices generally accepted in Japan, which are different in certain respects as toapplication and disclosure requirements of International Accounting Standards. The consolidated statements of cash
flows are not required as part of the basic financial statements in Japan but are presented herein as additional information. The consolidated financial statements are not intended to present the financial position, results of operations
and cash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions other than Japan.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been madeto the consolidated financial statements issued domestically in order to present them in a form which is more familiar
to readers outside Japan. Also, certain reclassifications have been made to the 1998 financial statements in order forthem to conform to the classifications used in 1999. In addition, the accompanying notes include certain information
which is not required under accounting principles and practices generally accepted in Japan but is presented herein
as additional information.
The consolidated financial statements include the accounts of Chiyoda Corporation (the “Company”) and all of its
significant subsidiaries. Significant intercompany transactions and accounts have been eliminated.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which 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 the rate of ¥120 to $1, theapproximate rate of exchange at March 31, 1999. 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.

2. Summary of Significant Accounting Policies
a. Consolidation
The consolidated financial statements include the accounts of the Company and its significant 29 (12 in 1998) majorityowned subsidiaries (together, the “Companies”).
Investments in two (three in 1998) associated companies (companies owned 20% to 50%) are accounted for by theequity method. Investments in other subsidiaries and associated companies are stated at cost. If the equity method of
accounting had been applied to the investments in these companies, the effect on the accompanying consolidated
financial statements would not be material.
The excess of the cost of the Company’s investments in consolidated subsidiaries and associated companies
accounted for by the equity method, over its equity in the net assets at the respective dates of acquisition, wascharged to income at the time of acquisition as the amount involved was not material.
All significant intercompany balances and transactions have been eliminated in consolidation.
b. Construction Contracts
Income on contracts in the amount of more than ¥5 billion and having a construction duration of more than 18
months is recognized on the percentage-of-completion method in the ratio of costs incurred to total estimated costs.
Under this method, related costs and estimated earnings in excess of progress billings are presented as a current
asset.
Unbilled costs on the other contracts, which are accounted for by the completed-contract method, are statedas costs of construction contracts in process.
Payments received in excess of costs and estimated earnings on the contracts, which are accounted for by thepercentage-of-completion method, and costs incurred on the other contracts are presented as a current liability.
Costs of preparation work for unsuccessful proposals and other projects which are not realized are charged toincome and are included in costs of construction contracts.
c. Cash and Cash Equivalents
For the purposes of the statements of cash flows, the Company considers all time deposits to be cash equivalents.
Time deposits have original maturities of one year or less and can be withdrawn on demand with no diminution ofprincipal.

19

d. Allowance for Doubtful Accounts
Long-term loans and long-term receivables are presented net of specific reserves for doubtful accounts provided
for individual customers in the amounts of ¥5,743 million ($47,858 thousand) and ¥4,296 million for the years ended
March 31, 1999 and 1998, respectively.
An additional allowance for doubtful accounts is provided as a general reserve for possible losses arising from noncollection of notes, accounts and loans receivable and is calculated based on the maximum amount allowable for tax
purposes.
e. Foreign Currency Translations
Short-term receivables and payables (including the current portion of long-term debt) denominated in foreign
currencies are translated into Japanese yen at rates prevailing at the respective balance sheet dates.
Long-term receivables and payables denominated in foreign currencies are translated into Japanese yen at
rates prevailing at the transaction dates except for those which are translated using the exchange rates set forthin the applicable forward exchange contract.
Foreign exchange gains and losses are recognized in the fiscal periods in which they occur.
The financial statements of foreign subsidiaries and associated companies are translated into Japanese yen at theexchange rates in effect at their respective balance sheet dates in compliance with Japanese accounting practices.
“Translation adjustments” in the consolidated financial statements result from such accounting practices.
f. Marketable and Investment Securities
Marketable securities and other investment securities are, in principle, stated at cost as determined by the movingaverage method. However, where the market value declines to less than half of the carrying value and such decline
is deemed to be other than temporary, the value of the securities is written down to market. Major investments inassociated companies (20% to 50% ownership interests) are accounted for by the equity method.
g. Property, Plant and Equipment
Property, plant and equipment are stated at cost. Depreciation is computed using the declining-balance method, except
for the buildings owned by the Company and leased property owned by a certain leasing subsidiary which are computed using the straight-line method, based on the estimated useful lives of the assets. Effective April 1, 1998, theCompany adopted the straight-line method of depreciation for the buildings, which, previously, had been depreciatedby the declining-balance method. This change was made to provide a more accurate allocation of the cost of thebuildings.
The effects of this change were to decrease depreciation by ¥271 million and to decrease income before income
taxes by ¥18 million for the year ended March 31, 1999.
h. Leases
All leases are accounted for as operating leases. Under Japanese accounting standards for leases, finance leases thatdeem to transfer ownership of the leased property to the lessee are to be capitalized, while other finance leases are
permitted to be accounted for as operating lease transactions if certain “as if capitalized” information is disclosed in
the notes to the lessee’s consolidated financial statements. The disclosure requirements of these new standards arebeing applied on a step-by-step basis beginning with the fiscal year starting on April 1, 1996, with full implementation
for the fiscal year starting on April 1, 1998.
i. Income Taxes
Income taxes are provided for amounts currently payable for each year. The tax effect of temporary differences
between financial and tax reporting has not been recognized in the consolidated financial statements.
j. Retirement Benefits
The Company’s provision for employees’ retirement benefits is calculated to state the liability at the actuariallycomputed present value of severance payment costs for employees eligible for severance payments at eachbalance sheet date, less the amount funded in the pension plan.
The amounts contributed to the fund, including prior service costs, are charged to income when paid.
Retirement benefits to directors and corporate auditors are provided at the amount which would be required
based on the Company’s regulations, if all directors and corporate auditors terminated their offices at the endof each period.

20

CHIYODA CORPORATION

3. Transactions with Non-Consolidated Subsidiaries and Associated Companies
Significant transactions with and balances due from/(to) non-consolidated subsidiaries and associated companies
at March 31, 1999 and 1998, are summarized as follows:
Millions of Yen

1999

Transactions—construction contract revenues............................................................. ¥63,180
Transactions—interest and dividend income................................................................
195
Due from/(to):Notes and accounts receivable—trade ......................................................................
6,043
Short-term loans included in “Prepaid expenses and other”..................................
1,183
Long-term loans...........................................................................................................
540
Long-term receivables.................................................................................................
1,410
Notes and accounts payable—trade ..........................................................................
(911)

Thousands of
U.S. Dollars

1998

1999

¥39,243416$526,500
1,625

2,122
4,421
987
6,484
(971)

50,3589,858
4,500
11,750(7,592)The Company has guaranteed the indebtedness of certain non-consolidated subsidiaries and associated companies
in the amount of ¥16,144 million ($134,533 thousand) at March 31, 1999.

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, 1999 and 1998, are as follows:
Millions of Yen

1999

1998

Costs and estimated earnings..................................................................................... ¥161,532 ¥226,707
Amounts billed ............................................................................................................. (151,864) (200,546)
Total ...................................................................................................................... ¥9,668

Thousands of
U.S. Dollars¥ 26,161

1999$1,346,100(1,265,533)$

80,567

Costs of construction contracts in process which are accounted for by the completed-contract method at March 31,
1999 and 1998, are as follows:
Millions of Yen

1999

Thousands of
U.S. Dollars

1998

1999

Costs incurred .................................................................................................................. ¥28,882
Amounts billed................................................................................................................. (10,671)¥43,172(22,388)$240,683(88,925)

Total .......................................................................................................................... ¥18,211¥20,784$151,758

21

5. Marketable and Investment Securities
The carrying amounts of marketable securities, debt securities and the related aggregate market values excluding
certain securities for which market information was not available and without any risk of market price fluctuation
at March 31, 1999 and 1998, were as follows:
Thousands of
U.S. Dollars

Millions of Yen

1998

1999

Current:
Carrying amount .......................................................................................................... ¥38,950
Aggregate market value .............................................................................................. 38,541

1999¥42,539
40,829$324,583
321,175

Net unrealized loss .................................................................................................. ¥409¥ 1,710$

3,408

Non-current:
Carrying amount .......................................................................................................... ¥Aggregate market value ..............................................................................................

9
7

¥

5
2

$

75
58

Net unrealized loss .................................................................................................. ¥

2

¥

3

$

17

6. Short-Term Debt and Long-Term Debt
Short-term debt at March 31, 1999, bears interest principally at 1.4% per annum.
Short-term debt at March 31, 1999, consisted of the following:
Millions of Yen

Thousands of
U.S. Dollars

Collateralized .............................................................................................................................
Uncollateralized .........................................................................................................................

¥31,434
49,877$261,950
415,642

Total ....................................................................................................................................

¥81,311$677,592

Long-term debt at March 31, 1999 and 1998, consisted of the following:
Millions of Yen

1999

Thousands of
U.S. Dollars

1998

1999

Long-term loans from banks and insurance companies, maturing
serially through 2010, with interest rates at 1.87% to 7.70%:
Collateralized .................................................................................................................. ¥ 2,220
Uncollateralized .............................................................................................................. 14,981¥3,055
6,358$ 18,500
124,842

Total............................................................................................................................. 17,201
Current portion ................................................................................................................... (3,683)

9,413(1,844)

143,342(30,692)

Total............................................................................................................................. ¥13,518¥7,569$112,650

Annual maturities of long-term loans from banks and insurance companies are as follows:
Millions of Yen

Thousands of
U.S. Dollars

2000 ............................................................................................................................................
2001 ............................................................................................................................................
2002 ............................................................................................................................................
2003 ............................................................................................................................................
2004 and thereafter ...................................................................................................................

¥ 3,683
1,874
481
10,272891$ 30,692
15,617
4,008
85,6007,425

Total ....................................................................................................................................

¥17,201$143,342

Years Ending March 31,

22

CHIYODA CORPORATIONThe following assets were pledged as collateral for short-term debt at March 31, 1999:
Millions of Yen

Thousands of
U.S. Dollars¥32,447$270,392

Millions of Yen

Thousands of
U.S. Dollars

Notes and accounts receivable—trade.....................................................................................
Property, plant and equipment .................................................................................................
Other investments......................................................................................................................

¥1,3222,065
340$11,017
17,2082,833

Total ....................................................................................................................................

¥3,727$31,058

Marketable securities .................................................................................................................
The following assets were pledged as collateral for long-term loans at March 31, 1999:

7. Retirement and Pension Plan
Employees who terminate their services with the Company are, under most circumstances, entitled to receive
lump-sum retirement benefits based upon their rates of pay at the time of termination, years of service and certain
other factors.
However, an employee who terminates at the age of over 50 years old with service of at least 20 years is entitled
to receive an annuity from the trustee under the pension plan which covers such employees. If the annuity does notreach the level of total retirement benefits due, the remainder would be paid by the Company.
Certain consolidated subsidiaries also have severance payment and pension plans similar to those of the Company.
Retirement benefits at March 31, 1999, include retirement benefits to directors and corporate auditors in theamount of ¥878 million ($7,317 thousand). The retirement benefits to directors and corporate auditors are paid
subject to the approval of the shareholders.
The assets of the fund as of March 31, 1999, totaled ¥7,587 million ($63,225 thousand).
Severance and pension expenses aggregated ¥2,711 million ($22,592 thousand) and ¥2,277 million for the years
ended March 31, 1999 and 1998, respectively.

8. Shareholders’ Equity
At March 31, 1999, the authorized number of shares was 700,000 thousand shares of common stock with a par valueof ¥50 per share and 80,000 thousand shares of non-voting, non-cumulative preferred stock without par value. At
March 31, 1998, the authorized number of shares was 600,000 thousand shares of common stock with a par value of¥50 per share.
Under the Commercial Code of Japan (the “Code”), at least 50% of the issue price of new shares, with a minimumof the par value thereof, is required to be designated as stated capital. The portion which is to be designated as statedcapital is determined by resolution of the Board of Directors. Proceeds in excess of the amounts designated as statedcapital are to be credited to additional paid-in capital.
Under the Code, amounts equal to at least 10% of the aggregate amount of cash dividends and certain other appropriations of retained earnings associated with cash outlays applicable to each fiscal period must be set aside as alegal reserve until such reserve equals 25% of stated capital. This reserve amount, which is included in deficit, totals¥2,927 million ($24,392 thousand) and ¥2,903 million as of March 31, 1999 and 1998, respectively, and is not available
for dividends but may be used to reduce a deficit or may be transferred to stated capital.
The Company may also transfer, upon approval of the shareholders, a portion of unappropriated retained earnings
available for dividends to the capital stock account.

23

9. Income Taxes
The Company and its domestic consolidated subsidiaries are subject to a corporate tax, inhabitants tax and enterprisetax, all based on income, which in the aggregate resulted in normal statutory effective tax rates of approximately 48%
and 52% for the years ended March 31, 1999 and 1998, respectively.
Foreign subsidiaries are subject to income taxes of the countries in which they operate.
The effective tax rates in the consolidated statements of operations differ from the normal statutory effective tax rates
primarily due to the effect of temporary differences and the effect of permanently non-deductible expenses.
Under the current Japanese tax regulations, a net operating loss can be carried forward for five years and deductedfrom any future taxable income. The Company has a net operating loss carryforward of approximately ¥94,675 million($788,958 thousand) at March 31, 1999.
The net operating loss carryforwards, if not utilized, will expire as follows:
Millions of Yen

Thousands of
U.S. Dollars

2002 .............................................................................................................................................
2003 .............................................................................................................................................
2004 .............................................................................................................................................

¥18,849
35,39540,431$157,075
294,958
336,925

Total ....................................................................................................................................

¥94,675$788,958

Years Ending March 31,

Foreign income taxes of ¥711 million ($5,925 thousand) are included in “Income Taxes” for the year ended March
31, 1999.

10. Costs and Expenses—Other
Costs and expenses—other consisted of the following:
Millions of Yen

1999

Thousands of
U.S. Dollars

1998

1999

Loss on devaluation of marketable securities ................................................................... ¥ 990
Other ..................................................................................................................................... 1,235¥1,672445$ 8,250
10,291

Total .............................................................................................................................. ¥2,225¥2,117$18,54124

CHIYODA CORPORATION

11. Leases
Income from equipment leases for the years ended March 31, 1999 and 1998, was ¥323 million ($2,692 thousand) and¥475 million, respectively.
The Company leases certain machinery, computer equipment, office space and other assets, and a certain subsidiary has leasing operations. Total rental expenses under the above leases were ¥41 million ($342 thousand) and¥232 million for the years ended March 31, 1999 and 1998, respectively.
Pro forma information of leased property under finance leases that do not transfer ownership of the leased property to the lessee on an “as if capitalized” basis for the years ended March 31, 1999 and 1998, was as follows:
For Lessor
Millions of Yen
MachineryandEquipment

Other

Acquisition cost ..............................................................
Accumulated depreciation.............................................

¥1,494
1,201

¥166
89

Net leased property................................................

¥ 293

¥ 77

Year Ended March 31, 1999

Thousands of U.S. Dollars

Total

MachineryandEquipment

Other

Total

¥1,660
1,290$12,450
10,008$1,383742$13,833
10,750¥ 370$ 2,442$ 641$ 3,083

For Lessee
Millions of Yen
MachineryandEquipment

Other

Acquisition cost................................................................
Accumulated depreciation ..............................................

¥208
159

¥18
15

Net leased property .................................................

¥ 49

¥ 3

Thousands of U.S. Dollars

Total

MachineryandEquipment

Other

Total

¥226
174

$1,733
1,325

$150
125

$1,883
1,450

¥ 52

$ 408

$ 25

$ 433

Millions of Yen

Thousands of U.S. Dollars

Unearned
Lease Income(As Lessor)

Obligations
under
Finance Lease(As Lessee)

Unearned
Lease Income(As Lessor)

Obligations
under
Finance Lease(As Lessee)

Due within one year ........................................................................
Due after one year ...........................................................................

¥279
563

¥24
29

$2,325
4,692

$200
242

Total..........................................................................................

¥842

¥53

$7,017$442

Millions of Yen
Unearned
Lease Income(As Lessor)

Obligations
under
Finance Lease(As Lessee)

Due within one year.........................................................................................................................
Due after one year............................................................................................................................

¥ 398
909

¥33
7

Total ..........................................................................................................................................

¥1,307¥40

Year Ended March 31, 1998

Depreciation expense for lessor, which is reflected in the accompanying consolidated statements of operations,computed by the straight-line method was ¥215 million ($1,792 thousand) for the year ended March 31, 1999.
Depreciation expense for lessee, which is not reflected in the accompanying consolidated statements of operations,computed by the straight-line method was ¥41 million ($342 thousand) for the year ended March 31, 1999.
The amounts of unearned lease income and obligations, acquisition cost and depreciation under finance leases
include the imputed interest income portion and interest expense portion, respectively.

25

12. Segment Information
Information about foreign operations and sales to foreign customers of the Company and consolidated subsidiaries
for the years ended March 31, 1999 and 1998, was as follows:(1) Foreign Operations
Millions of yen
Asia

EuropeNorth
America

Construction contract
revenue:
Outside customers ........... ¥296,288
Intersegment.....................
19,465¥10,562
995

¥ 145
6,750

¥5,202412¥ 37
7¥312,234
27,629¥(27,629)

Total............................... 315,753
Operating expenses ............. 326,781

11,557
13,782

6,895
6,890

5,614
5,213

44
60

339,863352,726(27,629)(27,543)

312,234
325,183

Operating profit (loss) .......... ¥ (11,028)¥ (2,225)

¥

¥ 401

¥(16)

¥ (12,863)¥(12,949)

Year Ended March 31, 1999

Japan

5

Other

Subtotal

Eliminations(Corporate)

Consolidated¥312,234(86)

Other income andexpenses—net ....................

2,415

Loss before income taxes
and other items...................

¥ (10,534)

Assets .................................... ¥215,470¥ 4,013¥ 471¥1,707¥ 25¥221,686¥ (7,766)¥213,920

Consolidated

Thousands of U.S. Dollars
Asia

EuropeNorth
America

Other

Subtotal

Eliminations(Corporate)

Construction contract
revenue:
Outside customers ........ $2,469,067
Intersegment..................
162,208$ 88,017
8,292$ 1,208
56,250$43,350
3,433

$ 308
58

$2,601,950
230,241$(230,241)

Total............................ 2,631,275
Operating expenses .......... 2,723,175

96,309114,850

57,45857,417

46,78343,442366
500

2,832,191
2,939,384(230,241)(229,526)

2,601,950
2,709,858$(107,908)

Year Ended March 31, 1999

Operating profit (loss)....... $Japan(91,900) $(18,541) $41$ 3,341$(134) $ (107,193)$2,601,950(715)

Other income andexpenses—net .................

20,125

Loss before income taxes
and other items ...............
Assets ................................. $1,795,583

26

CHIYODA CORPORATION$$ 33,442$ 3,925$14,225$ 208$1,847,383$ (64,717)(87,783)$1,782,666

Millions of Yen

Year Ended March 31, 1998

Japan

Asia

North
America

Subtotal

Eliminations(Corporate)

62
2,861

¥3,641
281¥303,476
35,586¥(35,586)

2,923
2,908

3,922
3,761

339,062
381,126(35,586)(35,091)

303,476
346,035¥ 161¥ (42,064)¥(42,559)

EuropeConstruction contract revenue:
Outside customers ................................. ¥287,979
Intersegment...........................................
29,958¥11,794
2,486

Total..................................................... 317,937
Operating expenses ................................... 357,456

14,28017,001

Operating profit (loss) ................................ ¥ (39,519)¥ (2,721) ¥¥15

Consolidated¥303,476(495)

Other income and expenses—net .............

(5,808)Loss before income taxes
and other items ........................................

¥ (48,367)

Assets .......................................................... ¥248,691¥ 6,217¥ 363¥2,761¥258,032¥(286)¥257,746

Notes: 1. The Company and consolidated subsidiaries are summarized in five (four in 1998) segments by geographic area based on
the countries where the Companies are located.
Notes: 1. The segments consisted of the following countries in 1999 and 1998, respectively:
Year Ended March 31, 1999
Year Ended March 31, 1998
Asia:
Indonesia, Singapore, Philippines, Myanmar
Asia:
Indonesia, Singapore
Europe:United Kingdom, Germany
Europe:United Kingdom
North America: United States of America
North America: United States of America
Other:
Australia
Notes: 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as ofMarch 31, 1999 and 1998, were ¥5,691 million ($47,425 thousand) and ¥12,656 million, respectively.
Notes: 3. Accounting Change—Effective April 1, 1998, the Company adopted the straight-line method of depreciation based on tax
regulations for all the buildings of the Company, which, previously, had been depreciated by the declining-balance method.
The effect of this change was to decrease depreciation and operating losses in the segment of Japan by ¥236 million forthe year ended March 31, 1999.

27

(2) Sales to Foreign Customers
Millions of Yen

Year Ended March 31, 1999

Asia

Overseas sales (A) ...................................................................................... ¥86,742
Consolidated sales (B) ................................................................................
(A)/(B) ........................................................................................................... 27.78%

The Near andMiddle East

Other

Total

¥112,127¥27,950

35.91%

8.95%¥226,819
312,234
72.64%

Thousands of U.S. Dollars

Year Ended March 31, 1999

Asia

Overseas sales (A)..................................................................................... $722,850
Consolidated sales (B) ..............................................................................

The Near andMiddle East

Other

Total

$934,392$232,916$1,890,158
2,601,950

Millions of Yen

Year Ended March 31, 1998

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

Asia

The Near andMiddle East

Other

Total

¥97,983¥101,580¥14,965

32.29%

33.47%

4.93%¥214,528
303,476
70.69%

Note: The Company and consolidated subsidiaries are summarized in three segments by geographic area based on the countries
where the Companies are located.
Note: The segments consist of the following countries:
Asia:
Indonesia, Singapore, Malaysia, Myanmar, etc.
The Near and Middle East:
Qatar, Oman, Saudi Arabia, etc.
Other:
Poland, Turkmenistan, Slovakia, United States of America, Canada, etc.

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.
Accordingly, the presentation of industry segment information is not required under the related regulations.

13. Subsequent Event
The following proposed disposition of accumulated deficit of the Company at March 31, 1999, was approved at theshareholders meeting held on June 29, 1999:

Balance of accumulated deficit at March 31, 1999 ..................................................................
Accumulated deficit to be carried forward ..............................................................................

Millions of Yen

Thousands of
U.S. Dollars¥42,285
42,285$352,375
352,375

14. Per Common Share Information
Net loss per common share is based upon the weighted average number of shares outstanding during each year.
The average number of common shares used in the computation was 199,652 thousand shares and 195,224 thousand
shares for 1999 and 1998, respectively.
Fully diluted net income per share is not disclosed because of the Company’s net loss position.

28

CHIYODA CORPORATION

Opinion of Independent Public Accountants

Independent Auditors’ Report
To the Board of Directors and Shareholders of Chiyoda Corporation:
We have examined the consolidated balance sheets of Chiyoda Corporation and consolidated
subsidiaries as of March 31, 1999 and 1998, and the related consolidated statements of operations,shareholders’ equity, and cash flows for the years then ended, all expressed in Japanese yen. Our
examinations were made in accordance with auditing standards, procedures and practices generally
accepted and applied in Japan and, accordingly, included such tests of the accounting records andsuch other auditing procedures as we considered necessary in the circumstances.
In our opinion, the consolidated financial statements referred to above present fairly the financial
position of Chiyoda Corporation and consolidated subsidiaries as of March 31, 1999 and 1998, and theresults of their operations and their cash flows for the years then ended in conformity with accounting
principles and practices generally accepted in Japan applied on a consistent basis except for thechange, with which we concur, in the accounting for depreciation as discussed in Note 2.
Our examinations also comprehended the translation of Japanese yen amounts into U.S. dollar
amounts and, in our opinion, such translation has been made in conformity with the basis stated in
Note 1. Such U.S. dollar amounts are presented solely for the convenience of readers outside Japan.

June 29, 1999

The accompanying financial statements are not intended to present the financial position and results ofoperations and cash flows in accordance with accounting principles and practices generally accepted incountries and jurisdictions other than Japan. The standards, procedures and practices to audit suchfinancial statements are those which are generally accepted and applied in Japan.

29

Corporate Directory

OFFICES
Yokohama Head OfficeBldgs. No. 1, 2, and 3,
12-1, Tsurumichuo 2-chome,
Tsurumi-ku, Yokohama 230-8601, Japan
Tel: 81-45-521-1231 Fax: 81-45-503-0200
Chiyoda Research Park
13, Moriya-cho 3-chome,
Kanagawa-ku, Yokohama 221-0022, Japan
Tel: 81-45-441-1268 Fax: 81-45-453-3416
Technowave Office
Technowave 100,
1-25, Shin-Urashima 1-chome,
Kanagawa-ku, Yokohama 221-0031, Japan
Tel: 81-45-441-9077 Fax: 81-45-441-9078
Hokkaido Sales Office
Sankyo Bldg. 712,
6-37 Kitananajoh, Nishi 2-chome,
Kita-ku, Sapporo 060-0807, Japan
Tel: 81-11-708-7811 Fax: 81-11-708-7812
Chubu Sales Office
Tohmei Kaihatsu Bldg.,
1-1, Ohzone 2-chome,
Kita-ku, Nagoya 462-0825, Japan
Tel: 81-52-916-2556 Fax: 81-52-914-7430
Osaka Sales Office
Green Bldg.,
6-26, Kitahama 2-chome,
Chuo-ku, Osaka 541-0041, Japan
Tel: 81-6202-8561 Fax: 81-6202-8563
Hiroshima Sales Office
Towa Fudosan Bldg. 802,
1-3, Ohtemachi 3-chome,
Naka-ku, Hiroshima 730-0051, Japan
Tel: 81-82-246-1805 Fax: 81-82-243-6476
Okinawa Sales Office
Kokuba Bldg., 21-1, Kumoji 3-chome,
Naha-shi, Okinawa 900-0015, Japan
Tel: 81-98-861-2696 Fax: 81-98-867-6093

REPRESENTATIVE OFFICES
Singapore Human Resources Office
10 Anson Road, #28-06A International Plaza,
Singapore 079903, The Republic of Singapore
Tel: 65-324-0080 Fax: 65-324-0090
Chiyoda Beijing Representative Office
Room No. 1028, China World Tower No. 1,
Jianguomenwai Avenue,
Beijing 100004, China
Tel: 86-10-6505-2678 Fax: 86-10-6505-1118
Chiyoda Jakarta Representative Office
9th Floor, Mid-Plaza Bldg.,
Jalan Jenderal Sudirman Kav. 10-11,
Jakarta 10220, Indonesia
Tel: 62-21-570-7579 Fax: 62-21-570-6276

Chiyoda Tehran Branch Office
2nd Floor, No. 16, Mahtab Street, Aftab Street,
Vanak Avenue, Tehran 19949, Iran
Tel: 98-21-8058592 Fax: 98-21-8058967
Chiyoda Doha Representative Office
6th Floor, Almana Centre,
Airport Road, Doha, Qatar
Tel: 974-621673 Fax: 974-622716
Chiyoda Hague Representative Office
5th Floor, Koningin Julianaplein 30-5B,
Kantoren B 2595 AA, The Hague,
The Netherlands
Tel: 31-70-385-9453 Fax: 31-70-347-9174
Chiyoda Corporation
Business Development–Southeast Asia
14 International Business Park, Jurong East,
Singapore 609922, The Republic of Singapore
Tel: 65-560-1274 Fax: 65-560-2563

OVERSEAS SUBSIDIARIES
Chiyoda International Corporation
1177 West Loop South, Suite 1302,
Houston, TX 77027, U.S.A.
Tel: 1-713-965-9005 Fax: 1-713-965-0075
Chiyoda International Limited
33 Cavendish Square,
London W1M OLX, U.K.
Tel: 44-171-867-1221 Fax: 44-171-867-1414
Tlx: 94083136 CHYODA L
Chiyoda Deutschland GmbHTechnologie Park, Bergisch Gladbach,Friedrich-Ebert-Strasse, 51429 Bergisch
Gladbach, Germany
Tel: 49-2204-843080 Fax: 49-2204-843090
Chiyoda Singapore (Pte) Limited
14 International Business Park, Jurong East,
Singapore 609922, The Republic of Singapore
Tel: 65-563-3488 Fax: 65-567-5231
Chiyoda Asia Pacific (Pte) Limited
14 International Business Park, Jurong East,
Singapore 609922, The Republic of Singapore
Tel: 65-425-0368 Fax: 65-569-6102
Chiyoda Malaysia Sdn. Bhd.
15th Floor, Menara Maxisegar,
Jalan Pandan Indah, 4/2, Pandan
Indah 55100, Kuala Lumpur, Malaysia
Tel: 60-3-497-0988 Fax: 60-3-497-0800
Chiyoda (Thailand) Limited
Bangkok Head Office
5th Floor, Dusit Thani Office Bldg.,
No. 946, Rama IV Road,
Bangkok 10500, Thailand
Tel: 66-2-236-8037 Fax: 66-2-236-6841
Sriracha Office
P.O. Box 7, Ao-Udom,
Sriracha, Cholburi 20230, Thailand
Tel: 66-38-352-315/8 Fax: 66-38-352-321

PT. Chiyoda International Indonesia
Graha Mobisel 4th Floor, Jalan Buncit
Raya No. 139, Jakarta 12740, Indonesia
Tel: 62-21-790-2801 Fax: 62-21-797-1472
L&T–Chiyoda Limited
B.P. Estate, National Highway No. 8,
Chhani, Baroda–391740,
Gujarat State, India
Tel: 91-265-791902/3 Fax: 91-265-774985
C&E Corporation
C&E Corporation Bldg.,
Meralco Avenue Corner,
General Araneta Street,
Pasig, Metro Manila, Philippines
Tel: 63-2--636-1001/8 Fax: 63-2-636-1013
Chiyoda Petrostar Ltd.
Al-Khobar Office
P.O. Box 602, Dhahran Airport 31932,
The Kingdom of Saudi Arabia
Tel: 966-3-864-0839/966-3-898-0034
Fax: 966-3-864-0986
Jeddah Head Office
P.O. Box 6188, Jeddah 21442,
The Kingdom of Saudi Arabia
Tel: 966-2-647-0558 Fax: 966-2-647-1908
Tlx: 601062 MOTSIM
Chiyoda Nigeria Limited
Lagos Head Office
Plot PC-12, 1st Floor, (AI I CO Plaza),
Afribank Street, Victoria Island,
Lagos, Nigeria
Tel: 234-1-2613291 Fax: 234-1-2612565
Tlx: 21218 THRU C.I. TOKYO
Kaduna Branch Office
Kachia Road, 17KM, P.O. Box 1144,
Kaduna, Nigeria
Chiyoda Star Company
1177 West Loop South, Suite 1302,
Houston, TX 77027, U.S.A.
Tel: 1-713-965-9005
Fax: 1-713-965-0075/0602
Chiyoda & Public Works Co., Ltd.
No. 1 A, Thanthumar Road, 29 Ward,
Thuwunna, Thingangyun Township,
Yangon, The Union of Myanmar
Tel: 95-1-565615/579330
Fax: 95-1-579870
Chiyoda Polska Sp. ZO.O
UI.P. Skargi 8, #230, 40-091 Katowice, Poland
Tel/Fax: 48-32-587-000
Kellogg-Chiyoda Service Ltd.
c/o W.S. Walker & Company,
1st Floor, Caledonian House, Mary Street,
P.O. Box 265G George Town,
Grand Cayman, Cayman Island(As of August 1, 1999)

30

CHIYODA CORPORATIONCorporate Data

Established
January 20, 1948
Number of Employees
2,334
Main Business Activities
Planning, design, procurement, construction, commissioning, and operation assistance of public- and private-sector
facilities in such areas as petroleum, gas, petrochemicals,
general chemicals, coal, electric power, nonferrous metal
processing, waterworks, food processing, biochemistry,
pharmaceutical manufacturing, medical treatment, factory
automation and computer-integrated manufacturing, theme
park development, space development, and distribution as
well as related facilities for pollution prevention, environmental preservation and enhancement, and disaster prevention
Paid-in Capital¥20,385,420,890
Capital Stock Issued
248,357,059 shares
Number of Shareholders
18,125
Stock Exchange Listings
Tokyo, Osaka
Transfer Agent of Common Stock
The Mitsubishi Trust and Banking Corporation
4-5, Marunouchi 1-chome, Chiyoda-ku,
Tokyo 100-0005, Japan(As of March 31, 1999)

31

Printed in Japan