Chiyoda Corporation
Annual Report 2002
Fiscal Year Ended March 31, 2002

PROFILE

For more than 50 years, Chiyoda Corporation has constantly evolved to meet the fastchanging needs of its diverse customers around the world.
As an integrated engineering and construction company with a solid foundation in thehydrocarbon processing industry, Chiyoda has leveraged its extensive experience andfar-reaching global network to give it an unrivalled advantage in today’s challenging
times.
The Company will continue its engineering, procurement and construction (EPC)
business, while enlarging operations to include plant lifecycle engineering (PLE). This
will enable Chiyoda to participate in plant planning, maintenance, operation,
revamping, and business planning for future investment. The objective is to become aone-stop provider of everything Chiyoda customers need in the way of plantdevelopment and operations.
The trust Chiyoda has earned over the past five decades, combined with its vast global
network of personal contacts and deep reservoir of know-how, make it the engineering
company of choice for customers worldwide.

“Where we are going.”
ClientPlant Lifecycle Engineering
Current Plant Proposal
Provide Advanced Solutions
New Business ModelingBusiness
Planning

Advanced EPC / EPCm
Plant IT System Eng. (i-Plant 21® )Solution Providing
Data Warehousing

Operation(Monitoring)

EPC
Planning & FS

Current
Situation
Inspection(Facility)

Maintenance(Pre) Commissioning

Contractor

EPC Service / Contract

CONTENTS

1
2
3
5

ProfileBusiness Highlights
A Message from the Management
Review of Operations
International Markets
Domestic & General Industries Markets
Technology Outlook

O & M Service / Contract

13 Financial Section
33 Corporate Directory
34 Board of Directors and Executive Officers
34 Corporate Data

Cover: Based on the Albert Memorial in Hyde Park, London, UK

Forward-Looking Statements
This annual report contains forward-looking statements about Chiyoda Corporation’s outlooks, plans, forecasts, results, and other items that may take place in the future.
Such statements are based on data available when the report was published. Unknown risks and other uncertainties that happen in the future may cause our actual
results to be different from the forward-looking statements contained in this report. The risks and uncertainties include business and economic conditions, competitive
pressure, changes to laws and regulations, addition or elimination of products, exchange rate fluctuation, among many more.

1 CHIYODA CORPORATIONBUSINESS HIGHLIGHTS

1 ADGAS President Al Jarwan visited Chiyoda for signingceremony of LPG Train-4 FEED contract.
2 A ceremony marks 3 million hours of accident-free
operation at BP Ningbo LPG bulk breaking terminal
project in China.
3 Chiyoda completed technical center for Asahi Glass.
4 A Chiyoda consortium won a contract for a fertilizer
complex in Iran from PIDMCO.
5 Chiyoda participated in the LNG13 International
Exhibition held in Seoul, Korea, in May 2001 and madethree presentaions at the conference.
6 Groundbreaking ceremony for the Mie Prefectural
Government’s RDF Fired Power Plant.
7 Chiyoda installed storage pile dischargers at the Nippon
Oil coal center, Japan's largest, which handles 2.7 million
tons of coal annually.

8 Completion ceremony for the sulfuric acid plant of
Onahama Smelting & Refining. Chiyoda built the plant’s
tail gas treating unit.
9 Chiyoda completed a medical X-ray film factory project for
Konica based on an EPC+management program.
10 Chiyoda completed ash handling facilities for Isogo
Thermal Power Station Unit No.1 of EPDC (J-Power).
11 Chiyoda completed the CT-121 FGD plant for KOBELCO’s
Shinko Kobe Power Station No.1.
12 Chiyoda completed the Sankio Chemical clinical medicine
production plant.
13 A solemn ceremony for a safe completion of a project tomove the Toyo Roki main manufacturing plant.

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CHIYODA CORPORATION 2

A MESSAGE FROM THE MANAGEMENT
gas as feed stock. Stabilization of oil prices at a fairly high level
and technological advances have resulted in the realization oflarger scale gas-initiative plants, which resulted in improved
productivity. The increased availability of cheaper feed stock also
helped the market grow. As a result, we saw some resurgence inoverseas markets, especially in the Middle East.
This year, activities and projects resulting from our “NewRestructuring Plan” were stimulated by our “Project Super X,”
which was devised in an effort to achieve concrete results asquickly as possible. Project Super X went into action early in thefiscal year and helped us keep adverse effects of market
fluctuations to a minimum, as well as assisting the Company inmaking the adjustments necessary to put us on a firm footing forstable profitability.

Nobuo Seki President and CEO(1) Improving our fiscal position
As planned, five banks led by the Bank of Tokyo-Mitsubishi, andMitsubishi Corporation, waived their credits against Chiyoda for a
total of ¥2.8 billion in loans, as special liability exemptions. At thesame time, we took measures to drastically reduce fixed costs andto sell off assets. In the end, we were able to significantly improve
our fiscal position.

To Our Shareholders:
May we first express our appreciation for your understanding andsupport. We hope that your patience is being amply rewarded.
This report concerns the operations of Chiyoda Corporation during
the fiscal year ending March 31, 2002.
Overall, the economy was sluggish, although exports were buoyedby the recovery seen in the United States. On the other hand, inJapan, a worsening employment situation resulted in a further
slowdown in consumer spending and a shifting of production
facilities overseas led to declining capital investments at home.
Overseas, the terrorist attacks of September 11, 2001, resulted
directly in armed conflict in Afghanistan and indirectly inaggravated hostilities between Israel and the Palestinians. While
there is some political instability in certain countries, adjustment
in inventories, especially in the United States, has led to a brighterinternational economic outlook.

Business Activities in FY2002
In the domestic plant market, LNG receiving terminals,
pharmaceuticals plants, and facilities to meet environmental
standards showed healthy growth. However, the deflationary spiralof the current economy caused a very severe businessenvironment overall.
In the overseas plant market, LNG projects were very active,
stimulated by the move from oil and coal-fired power generation to
LNG. We also saw some ethylene project movement, using natural

3 CHIYODA CORPORATION(2) Strengthening competitivenessThe practical application of overseas Low Cost Engineering
Centers (LCEs) and low-cost subcontractors helped us create avery competitive position.
(3) Synergizing Group companies
By having each company concentrate upon its core business, andby clarifying each company’s strengths, we can harmonize
common operations and management to make maximum use of
the synergism created by our Group companies.
(4) Promoting information technology
The entire Chiyoda Group is moving ahead with groupwide
integration of information technology, improvement of information
security in today’s online environment, and launching of a Webbased IT initiative. These IT strategies will take effect in the
coming fiscal year, and we believe our enhanced IT capabilities
will help us take our business to a higher level.
(5) Fulfilling business planning management system
We introduced an overall budget program aimed at stringent
control of general administrative and bidding costs.
In addition, for the proper control and management of eachproject, we have strengthened our process of checks at eachstage (Design Review System and Milestone Monitoring System)
designed to track the risks inherent within the project, identify
approaching problems, and map out the steps to effective
solutions. The corporate administration division conducts double
checks (Cold Eye Review System) of all projects, and makes themwhile restraining influence and maintaining transparency.

At the management level, analysis of the risk management planfor each project is thoroughly and carefully assessed, so projects
that Chiyoda should pursue can be identified by the Executive
Committee, which consists of representative directors.
(6) Obtaining sources of outside manpower
We have set up a system whereby skilled contract employees,
including some retired Chiyoda personnel, can be more effectively
utilized.
(7) Strengthening alliances and joint ventures
In order to maintain and strengthen our technological advantage,
Chiyoda has formed a number of technological and operational
alliances with competent corporations that will help us fortify ourcompetitive edge and contribute to our business development. In
the fiscal period under review, we formed an alliance with a large
Dutch chemical company, DSM Fibre Intermediates B.V., for
Caprolactam processes. In addition, we licensed our Chiyoda
Thoroughbred 121 flue gas desulfurization process technology to
the Black & Veatch Corporation for the North American market
and to Environmental Engineering Corporation for the Chinese
market. Further, we entered into an agreement with Kellogg
Brown & Root, Inc. (KBR) of the United States for residuum oil
treating technology.
In Japan, we are conducting joint research with Nippon Furnace
Kaisha, Ltd., with the aim of developing steam reformers using
new combustion technology. We conducted the world’s first test
operation of this new technology, which received a great deal ofattention at home and abroad.
Where large overseas projects are concerned, we are actively
engaged in forming joint ventures with other companies in our
industry, depending on characteristics and quality of the projects
involved.
With these programs, we were able to reach our goal of becoming
a lean, efficient, and profitable organization.
As a result of the efforts of each Chiyoda employee, we were able
to win orders during the fiscal year amounting to ¥61.9 billion
domestically, an increase of 11.2% over last year, and ¥121.4
billion overseas, an increase of 173.5%, for total orders receivedof ¥183.4 billion, an increase of 83.2%, which exceeded our
projections.

exchange rates, but our ordinary loss totaled ¥4.5 billion. In
addition to the debt forgiveness gain of ¥2.8 billion, we also
gained a net extraordinary profit of ¥5.6 billion from the sale ofassets. Nevertheless, net income for the fiscal year came to only
¥53 million after payment of foreign taxes.

Strategy and Prospects
Since our founding, the Company has adhered to a single
objective. To acquire resources, centering on energy, for Japan,
which has few resources. In addition, our corporate stance is tocontribute to society through technology that helps create energy.
And, based upon this standard, we keep careful watch on
government energy policies and pursue a place for our company
as an engineering firm that helps establish Japan as the fount ofworld-leading technology.
Further, while continuing our well-received Engineering,
Procurement, Construction (EPC) business, we plan to enlarge
our operations to include PLE, or Plant Lifecycle Engineering. This
will enable us to create a database that we can jointly access andoperate with our customers, thereby enabling Chiyoda toparticipate in plant planning, maintenance, operation, revamping,and business planning for future investment. In other words, wewill become a one-stop provider of everything our customers needin the way of plant development and operations. As a foundation
for this strategy, we established Chiyoda Advanced Solutions
Corporation (ChAS) as a subsidiary charged with developing nonEPC business such as consulting, using computer simulation andanalysis for plant engineering purposes. With ChAS, we intend toconcentrate on leading-edge technology that offers very highadded value.
With proposals in our fields of expertise and leadership on therise, we plan to capitalize on lessons learned from our businesscrises of the past and meet this new business with a lean, highly
specialized, strong operational base. We aim to achieve
profitability and return to a strong business foundation at theearliest possible opportunity.
We hope that our shareholders understand our situation andcontinue to support our efforts toward efficient and effective
management and operations.
June 27, 2002

Where revenues are concerned, the low orders received
conditions of past years still affected us, so our construction
contracts figure for domestic markets reached ¥70.5 billion, an
increase of 77.3%, while the international markets figure reached¥35.0 billion (33.0% decrease). Overall revenues were ¥105.6
billion in total, an increase of 14.7% over last fiscal year. Grossprofits for the fiscal year were ¥370 million.
We worked hard at reducing selling, general and administrative
expenses, but were faced with an operating loss of ¥6.6 billion at
the end of the year. We did achieve some gains from favorable

Nobuo Seki
President and CEO

Note: The above figures are non-consolidated data.
CHIYODA CORPORATION 4REVIEW OF OPERATIONSINTERNATIONAL MARKETS
Liquefied Natural Gas (LNG) Sector
Business Summary
Worldwide trends toward protecting the environment
spur demand for LNG. New entrants into this market
include such countries as China and India, whileboth the European countries and the United States
are drastically increasing imports of LNG andboosting the LNG market. Considering thesecircumstances, a number of LNG projects arematerializing worldwide.
During fiscal 2001, Chiyoda completed five major
world-class LNG projects, supplying either Front End
Engineering Design (FEED) or Project Specification(PS). They were: PS for the Sakhalin LNG Project inRussia, FEED for Train-I and Tangguh LNG projects
in Indonesia, PS for Train-3 project in Oman, and
FEED for LNG project in Egypt. Most of these LNG
projects are now taking bids for selecting
Engineering, Procurement, and Construction (EPC)
contractor.

countries. The contract is the second base-load LNG
project for Chiyoda in Qatar, following the three trains
we have completed for the first grassroots LNG
project, which have made Qatar an LNG exporter.
Qatargas LNG Debottlenecking
A joint venture of Chiyoda with Technip was awarded
an EPC contract for the debottlenecking of the three
existing LNG trains at the Ras Laffan facility of Qatar
Liquefied Gas Co., Ltd. (QATARGAS), a joint venture
among Qatar Petroleum, TotalFinaElf, ExxonMobil,
Mitsui & Co., Ltd., and Marubeni Corporation. The
debottlenecking project will replace and upgrade key
process equipment such as compressors andturbines. The changes wrought by thedebottlenecking project will boost each train’s
production capacity from 2 million to 3 million tons
per year. The project work is expected to becompleted during the four shutdown periods
scheduled between 2002 and 2005. The expanded
second LNG train should come on-stream in 2003,
the third train in 2004, and the first train in 2005.

Major Projects
RasGas LNG Train-3
In April 2001, a Chiyoda consortium won asignificant EPC contract for the RasGas Onshore
Expansion Project by Ras Laffan Liquefied Natural
Gas Co., Ltd. (II) (RasGas II), a joint venture of Qatar
Petroleum and a subsidiary of ExxonMobil. The
consortium consisted of Chiyoda and Mitsui & Co.,
Ltd., of Japan and Snamprogetti S.p.A. of Italy. The
contract entails installation of the third LNG train, theworld’s largest, which would produce some 4.7
million tons of LNG per year per train (MMTY). The
project also includes a number of contract options,such as an identical fourth LNG train, additional LNG
tank and LNG loading facilities, and two trains ofSales Gas Units for the company’s planned
Enhanced Gas Utilization (EGU) project, which will
export processed natural gas to neighboring

Laying the cornerstone
for the RasGas II
Train-3 expansion project.

5 CHIYODA CORPORATION

Chiyoda-Technip joint venture won the contract for an LNG
plant debottllenecking project for Qatargas.

Qatar RasGas NGL FEED
Chiyoda received a contract for FEED on an Natural
Gas Liquids (NGL) recovery project at Ras Laffan,
Qatar, from the Ras Laffan LNG Co., Ltd., acting on
behalf of ExxonMobil Gas Marketing Middle East Ltd.
The project deals with one of the EGU facilities
mentioned in Ras Gas LNG Train-3 above. It aims to
use Qatar North Field natural gas to produce several
grade feedstocks, including methane rich sales gas,high purity ethane for future ethylene production,commercial grade LPG, and condensates. These
feedstocks will be sold to domestic and overseas
industries. In addition, taking future expansion into
consideration, the NGL recovery facilities are
expected to become the world’s largest at 2.0 billion
SCFD.

ADGAS LPG FEEDAbu Dhabi Gas Liquefaction Co., Ltd. (ADGAS), a
joint venture among the state-owned Abu Dhabi
National Oil Company (ADNOC), Mitsui & Co., Ltd.,BP, and TotalFinaElf, awarded Chiyoda a FEED
contract for the LPG train-4 project. New
environmental regulations forbid flaring of associatedgas from any future increases in oil production by
ADAMA-OPCO and by an ADNOC subsidiary. This
new LPG plant project aims to satisfy thoserequirements. Key factors in ADGAS’s selection of
Chiyoda include the experience and expertise we
stockpiled while completing a series of projects for
ADGAS on Das Island as well as our technical andcommercial competitiveness.
Tung Ting Gas LNG Terminal
Chiyoda and CTCI Corporation, a leading Taiwaneseengineering company, formed a consortium that wasawarded an engineering agreement for the KuanTang LNG Receiving Terminal by the Tung Ting Gas
Corporation in Taiwan. Tung Ting Gas is a joint
venture among China Development Industrial Bankof Taiwan, President Group of Taiwan, Mitsubishi
Corporation of Japan, and other Taiwanese andJapanese companies. After we complete theengineering work, Tung Ting plans to build Taiwan’s
second LNG Receiving Terminal.

Prospects for FY2002
Chiyoda expects awards for LNG EPC projects,
especially from those for which we completed FEED
work during the past two fiscal years. In order tomaintain our leading position as an engineering
contractor of the FEED and EPC phases in LNG
projects, we continue to review and renew ouractivities to meet changing customer needs, basedon our proven worldwide technical expertise, oursuccessful track record, and our pricecompetitiveness.

Hydrocarbon & Chemicals Sector
Business Summary
Global recessionary trends during the fiscal year
meant that the world market for engineering
contractors was generally not as active as we
anticipated. Therefore, in Chiyoda’s major markets
such as the Middle East and Southeast Asia, only alimited number of projects moved towardmaterialization while many were delayed.
These market conditions made it difficult forengineering contractors to win contracts for new
projects. At Chiyoda, fortunately, we met our
projections in terms of new projects awarded. Our
success in overseas business development camefrom the application of three principles: (1) carefulselection of projects to pursue; (2) flexibility informing consortium or joint venture partnerships;and (3) competitive pricing. Our competitive pricing
is the direct result of restructuring of Chiyoda andChiyoda subsidiaries, plus resolute efforts to find new
and innovating ways of reducing engineering,procurement, and construction costs.
We also feel that our achievements during the fiscal
year laid a firm foundation for continuing businesssuccess.

Major Projects
Dow Chemical Epoxy Resin Plant in China
This project is significant in at least two ways. First, it
is our initial project for Dow Chemical, a worldleading petrochemical company. And second, China
will surely be a significant market in the near future
as major petrochemical companies like Dow makeinvestments in thatcountry. Thus we
expect this project toplay a vital role in ourwinning awards for
projects from major oiland petrochemicalcompanies that invest
in China in the future.

A ceremony marksa world record for
accident-free operationin two projects for Dow
Chemical in China,
prior to the award ofa contract for an epoxy
resin plant.

PIDMCO Fertilizer Complex in Iran
Iran holds the world’s second-largest natural gas
reserves, and we believe it is a very important
potential market for Chiyoda. In addition, this projectis doubly important because we won the award byforming a consortium that includes Toyo Engineering
Corporation (TEC), which is usually a formidable
competitor in the fertilizer field. We expect thisproject to be a significant first step toward mutual
collaboration on future work, in the same way as ourcollaboration with JGC Corporation on a refinery
modernization project in Venezuela.
UNITED Ethylene Plant in Saudi Arabia
Saudi Arabia is one of Chiyoda’s most important
markets. We wish to have on-going projects in Saudi
Arabia at all times. The competition for this projectA Chiyoda-led
consortium won
the contract from Jubail
United Petrochemical
Company (UNITED) for
the world's largest gasbased ethylene plant.
It will use KBR's
SCORE™ technology.

CHIYODA CORPORATION 6

REVIEW OF OPERATIONS

was stiff, which allows Chiyoda to accumulate
experiences in Saudi Arabia.
Our partners in the consortium that won this project
include KBR, licensor and alliance partner of theethylene process, and Mitsubishi Corporation, ourmajor shareholder. We feel the Chiyoda-KBR allianceis a strong one, and should result in ethylene
projects in many other countries.
Cooling Water System for Qatar Petroleum
For this project, Chiyoda collaborated with
Consolidated Contractors International Company
S.A.L (CCC). We have collaborated with the company
in the past, and, the combination of Chiyoda’s
engineering and procurement expertise and CCC’sconstruction skills should result in many more
Middle Eastern projects in the future. In addition,
CCC’s Middle East network and relationships arecertain to benefit our partnership.

Chiyoda and CCC won
the contract for the Ras
Laffan Common Cooling
Water Project from
Qatar Petroleum.
This common coolingwater system is a partof Qatar's strategic
natural gas industry
development plan, andserves as a basic
infrastructure forvarious gas-basedindustries.

construction and operating costs. Therefore, we seethat some projects originally planned for Southeast
Asia will be shifted to China, so we will keep a sharp
eye on the situation.
Our short-term strategy is to secure contracts for
petrochemical projects of large international oil or
petrochemical companies in China this year, as amajor step toward Chiyoda’s continuous presence inthat growing country.
Many large projects in the petroleum, gas, andpetrochemical sectors are planned in Latin America,
especially in Mexico and Venezuela. Our strategy is
to first determine which projects we have the best
chance of winning, and then do everything possible
to get them. One key to winning new contracts in thisregion will be financing from Japan.
In other parts of the world such as Africa, Central
Asia, Central Asia, Russia, and so on, we willconcentrate our efforts on a limited number ofprojects where Chiyoda has a clear technologicaladvantage and is most likely to win the award.
By plant type, in the petrochemical field, we will seek
to take advantage of our technological edge in termsof experience and recent contracts, especially
ethylene and its downstream products, aromatics,
acetic acid, and so on.

Major projects completed during this fiscal year
include a polystyrene plant for SAL Petrochemical(Zhangjiagang) Co., Ltd. in China, boiler installation
for ExxonMobil Asia Pacific Pte. Ltd. in Singapore,
and a refinery restoration for Pertamina in Indonesia.

Market Analyses and Strategies
Looking at different regions, the Middle East willcontinue to be Chiyoda’s most important market.
Hydrocarbon and chemical projects continue tomaterialize in the region, especially in the fields ofgas development and processing, gas to liquid (GTL),
petroleum refining, petrochemicals, and fertilizer.
Most Southeast Asian countries have virtually
recovered from their economic crises, and there
seems to be some activity in petrochemical andrefinery projects in the region.
Nevertheless, a number of large international
petrochemical and chemical companies are now
paying more attention to China than to Southeast
Asia, because China offers them a huge market withgrowing economic potential along with low plant

7 CHIYODA CORPORATION

We are also focusing on gas-to-liquid (GTL) projects
worldwide. Our experience with large projects inremote areas includes LNG, refinery, andpetrochemical projects in the Middle East, Southeast
Asia, and Africa. And that experience is matched byexpertise in reforming and synthesis gas processes.
We are confident that Chiyoda’s experience andexpertise will contribute significantly to our successin winning GTL projects.
Chiyoda also holds definite technological advantages
for certain refinery units such as hydrocrackers, fluid
catalytic crackers (FCC), continuous catalytic
reformers (CCRs), on-stream catalytic replacement(OCR), and deeper ultra hydrodesulphurization(HDS).
In the fertilizer market, Chiyoda aims at projects inwhich we can form strong consortia and overcome
the competition.
We also see opportunities in gas-related mega
projects planned in countries with very large gas
reserves, especially in Qatar, Abu Dhabi, Indonesia,
Iran, and Saudi Arabia.
Chiyoda will continue to pursue overseas projects
backed by Japanese investors with whom we have

established business relations and familiarity throughour experience in the domestic market.

that receive financial backing from the Japanese
government or governmental institutions.

In addition, we will continue to undertake projects■MAIN PROJECTS(April 2001 - March 2002)

ClientProject

Location
Qatar
Qatar
TaiwanQatar
Indonesia
U.A.E.

Liquefied Natural Gas (LNG) Sector
New Contracts

Ras Laffan Liquefied Natural Gas Co., Ltd.(II)
Qatar Liquefied Gas Co., Ltd.
Tung Ting Gas Corporation
Ras Laffan Liquefied Natural Gas Co., Ltd.
Pertamina
Abu Dhabi Gas Liquefaction Co., Ltd. (ADGAS)LNG Plant (Train-3)
LNG Plant (Debottlenecking)
LNG Receiving Terminal (Preliminary work)
NGL Plant (FEED)LNG Plant (Train-I, FEED)LPG Plant (FEED)

Backlog of Contracts

P.T. Badak NGL

LNG Plant (DCS Retrofit)

Indonesia

Projects Completed

Pertamina/BP Berau, Ltd.
Shell Global Solutions International B.V.
Shell Global Solutions International B.V.

LNG Plant (FEED)LNG Plant (Project Specification)
LNG Plant (Project Specification)

Indonesia
RussiaOman

Jubail United Petrochemical Company
Petrochemical Industries Development
Management Company (PIDMCO)The Dow Chemical (Zhangjiagang) Co., Ltd.
Qatar Petroleum

Ethylene Plant

Saudi Arabia

Backlog of Contracts

Projects Completed

Hydrocarbon & Chemicals Sector
New Contracts

Urea Plant

Iran

Converted Epoxy Resin Plant
Common Cooling Water System

China
Qatar

Thai Olefins Co., Ltd.
China National Bluestar (Group) Corporation
Petroleos de Venezuela S.A.(PDVSA)
NEDO/Myanma Petrochemical Enterprise
BP Ningbo Huandong LPG Co., Ltd.

Ethylene Plant
Bisphnol-A Plant
Refinery Modernization
Fertilizer Plant (Revamp)
LPG Underground Storage Terminal

Thailand
China
Venezuela
MyanmarChina

SAL Petrochemical (Zhangjiagang) Co., Ltd.
Dow S/B Latex (Zhangjiagang) Co., Ltd.
ExxonMobil Asia Pacific Pte. Ltd.
Pertamina
Saudi Arabian Fertilizer Company

Polystylene Plant
Latex Plant
Boiler Installation
Refinery Restoration
Debottlenecking of Urea Plant (Basic Engineering)

China
China
Singapore
Indonesia
Saudi Arabia

DOMESTIC & GENERAL INDUSTRIES MARKETS
Market Overview
The domestic plant market remains in the doldrums
as Japan’s economy continues its recessionary
trends and the perception of excess production
capacity persists. However, Chiyoda was able to win
a healthy level of contracts for facilities to help theenergy industry meet environmental regulations, forpharmaceutical facilities, for chemical plants, and soon.
Petroleum Refining
The business environment for petroleum refining
facility investment remains very severe, due toexcess capacity and a lackluster domestic economy.
At the same time, corporations in the industry arestrengthening their organizations and conducting
widespread cost-cutting measures, Chiyoda isconcentrating in what we can best utilize ourtechnological advantages, such as methods formeeting environmental regulations in terms of ultra

deep desulfurization of gas oil, rationalization ofexisting facilities in order to boost competitiveness,
and ways of conserving energy. As a result, we wereawarded several important contracts, such as anadvanced energy saving program for the Sendai
Refinery (former Tohoku Oil Co., Ltd.) of Nippon
Petroleum Refining Co., Ltd., and a revamping forultra deep desulfurization of gas oil for the Marifu
Refinery (former Koa Oil Co., Ltd.) of Nippon
Petroleum Refining Co., Ltd.
Chiyoda reached an agreement with Kellogg Brown
and Root, Inc. (KBR) for its Residuum Oil
Supercritical Extraction (ROSE™) process and will
start marketing activities for this process for treating
residual heavy oil in the future.
Storage Terminals and Airports
During the year, Chiyoda was awarded a contract fora cryogenic tank system at the Fukushima Terminal,

CHIYODA CORPORATION 8

REVIEW OF OPERATIONS

one of the National LPG Stockpiling Projects. The
project is currently under way and progressing
according to schedule.
Planning to use the experience gained in the LPG
Bulk Breaking Terminal Project for BP Ningbo
Huadong LPG Co., Ltd., Chiyoda is keeping a close
eye on three new projects: water sealed minedcavern storage systems in Namikata and Kurashiki
and an above-ground storage project in Kamisu.
For airport projects, Chiyoda received an order for Jet
Fuel Supply Center No.2 from the Narita Airport
Authority (NAA).
Power and Gas
The power and gas industries continue to face severe
conditions as the lackluster economy has resulted in
reduced growth of energy use, and deregulation ofenergy retailing has caused gas and electric powercompanies to undertake programs of significant
restructuring and cost reduction. Nevertheless,orders received during the fiscal year for flue gas
desulfurization plants and LNG receiving terminalrelated facilities attest to our industry-leading
position.

Chiyoda completed
piping and facilities
work for the Toho Gas
Chita-Midorihama LNG
receiving terminal.
This terminal is
expected to handle
about 800,000 tons of
LNG per year, andfeatures four vaporizers
and the world’s largest
underground LNG
storage tank, whichholds 200,000 Kl.

Chiyoda completed the bisphenol-A Plant at the Mitsubishi
Chemical Kurosaki Plant.

Pharmaceuticals
The pharmaceuticals industry is in flux, pushed bygreater pressure to develop new drugs, declining
drug prices, the international harmonization
movement, mergers among large U.S. and EU
pharmaceuticals companies, M&A activities, and soon. These conditions have resulted in the need for
greater production capacity for new drugs in someinstances and concentration of production plants inothers. In addition, a greater amount of outsourcing
has led to reappraisals of production capacity among
outsource providers.
Against this background, the Company is recognized
to have superior technology and was awarded several
contracts for pharmaceuticals production facilities,
including oral solid dosage forms facilities for
Ajinomoto Pharma Co., Ltd.

Chemicals and Petrochemicals
In the chemicals and petrochemicals industries,
basic petrochemicals are in the last stages of arevamping in the wake of a price war precipitated bya flood of imports and by increased competition in alifeless economy. On the other hand, the movement
toward investment in fine chemicals continues, andinvestment in active pharmaceutical ingredients(APIs) plants has accelerated in the chemicalindustry.
In this environment, Chiyoda has won contracts forseveral bulk pharmaceutical plants for the chemicalindustry. In the petrochemical industry, we
completed a domestic bisphenol-A plant and the
expansion of a Singapore polycarbonate plant.

9 CHIYODA CORPORATION

General Manufacturing
Resurgence in the semiconductor and liquid crystal
display (LCD) industries resulted in contracts
awarded to Chiyoda for high-performance film
production facilities and factory diagnosis forsemiconductor materials. And in generalmanufacturing, Chiyoda has begun its Engineering,
Procurement, Construction + Management (EPCm)
program, which gets the company involved withcustomers at the planning stage and has helped win
several new contracts.
Environmental Protection
As society moves toward environmental
sustainability, we can expect more projects aimed at
protecting the environment. Chiyoda enjoys
considerable experience in desulfurization anddenitrifaction projects, but we must make intense
efforts to attain new environmental projects inmarkets where we hold technological advantages. In
keeping with societal trends, Chiyoda organized an

Environmental Project Business Department as partof our organizational restructuring, which was
executed on June 15, 2001. This department
amalgamates the functions and projects of three
departments that belonged to the former
Environmental Project Division. Chiyoda isconducting aggressive sales activities, specializing inthree fields – soil and groundwater remediation,water treatment, and waste treatment – to help
clients meet increasingly strict environmental
regulations.

Chiyoda completed
a new solid dosage drug
production factory –the largest such facility
in Japan – for Nippon
Shinyaku.

Prospects and Strategies
In the energy market, significant activity willcontinue, spurred by clean energy and otherenvironmental concerns, the shift toward newsources of energy, and equipment necessary tocomply with new environmental regulations.

In the pharmaceuticals market, we can expect large
investments abroad and continued domestic
investment in drug development facilities and theintegration of production facilities. Overall, thismarket should be very active.

In the chemicals and petrochemicals market, we will
see increased investment activity in China andSoutheast Asia caused by an increasing number ofcompanies moving to those areas.

Chiyoda will make best use of our technologicaladvantages to win new contracts in the industries we
expect to show significant activity.

■MAIN PROJECTS(April 2001 - March 2002)

ClientProject

Location

New Contracts

Taiyo Oil Co., Ltd.
Nippon Petroleum Refining Co., Ltd. (Former Tohoku Oil Co., Ltd.)
Nippon Petroleum Refining Co., Ltd. (Former Koa Oil Co., Ltd.)New Tokyo International Airport Authority (NAA)
Electric Power Development Co., Ltd.
Ajinomoto Pharma Co., Ltd.
Pharmacia K.K.
Toyo Roki Mfg Co., LTD.
Eisai Co., Ltd.

Crude Distillation Unit(Revamp)
Advanced Energy Savings Program
Revamp for Ultra Deep Desulfurization
Jet Fuel Supply Center(No.2)
Fly Ash Recovery Facility
Pharmacuetical Factory
Drug Wrapping Factory (Revamp)
Manufacturing Factory
Research Laboratory

Ehime
Miyagi
Yamaguchi
Chiba
Kanagawa
Fukushima
IbarakiShizuoka
IbarakiBacklog of Contracts

Taiyo Oil Co., Ltd.

Ehime

Japan LPG Storage Co., Ltd.
Mie Prefectural Gov’t / Fuji Electric Co., Ltd.
Kobe Steel, Ltd.
The Kansai Electric Power Co., Inc.
The Tokyo Electric Power Co., Inc.
The Tokyo Electric Power Co., Inc.
Japan Nuclear Fuel Limited
Kaihatsu Denki Co., Ltd.
Shin-Higashi Nihon Sugar Manufacturing Corp.

Deep Hydrodesulfurization Plant
Sulphur Recovery Unit(SRU)
Hydrogen Production Unit(HPU),
Catalytic Flue Gas Desulfurization Unit(Cat. FGD)LPG Storage Terminal
RDF Fired Power Plant
Flue Gas Desulfurization Plant (No.2)
Flue Gas Desulfurization Plant
LNG Facilities Control System for Disaster Prevention
Expansion of LNG Facilities
Utility Facilities
Ash Handling Facility
Sugar Factory (Revamp)

The Tokyo Electric Power Co., Inc.
Toho Gas Co., Ltd.
The Okinawa Electric Power Co., Inc.
Kobe Steel, Ltd.
Teijin Polycarbonate Singapore Pte. Ltd.
Mitsubishi Chemical Corporation
Asahi Glass Co., Ltd.
Asahi Glass Urethane Co., Ltd.
Fuji Oil Co., Ltd.
Nihon Reishoku Co., Ltd.
Sankio Chemical Co., Ltd
Fujisawa Pharmaceutical Co., Ltd.
Central Glass Co., Ltd.
Meiji Seika Kaisha, Ltd.
Nippon Shinyaku Co., Ltd.
Bayer Yakuhin, Ltd.
Konica Corporation
Konica Corporation
Oriental Land Co., Ltd.

Vaporization-related Facility
LNG Receiving Terminal
Flue Gas Desulfurization Plant
Flue Gas Desulfurization Plant (No.1)
Polycarbonate Resin Plant (No.3)
Bisphenol-A Plant
Laboratory
Laboratories
Chololate Factory
Frozen Food Facility
Clinical Facility
Finishing Facility
Bulk Pharmaceutical Plant
Laboratories
Solid Dosage Factory
Laboratory
TAC Film Products Factory
Medical Film Factory
5 Ride-attractions for Theme Park

Chiba
Aichi
Okinawa
Hyogo
Singapore
Fukuoka
Chiba
Ibaraki
Ibaraki
Hokkaido
Fukushima
ToyamaYamaguchi
Kanagawa
Kanagawa
Kyoto
Hyogo
Yamanashi
Chiba

Nippon Petroleum Refining Co., Ltd.
(Former Koa Oil Co., Ltd.)

Projects Completed

Osaka
Nagasaki
Mie
Hyogo
Kyoto
Chiba
Kanagawa
Aomori
Kanagawa
Chiba

CHIYODA CORPORATION 10

REVIEW OF OPERATIONSTECHNOLOGY OUTLOOKStrategic Spin-Off of AES Division
On April 1, 2002, Chiyoda spun off its Advanced
Engineering Solutions (AES) Division, which had
been part of the company’s Technology & Operations
Support Sector, as a wholly owned subsidiary called
Chiyoda Advanced Solutions Corporation (ChAS).
ChAS will assume a role of “Business Core for the
New Generation Engineering”, charged with
developing business as a provider of high-valued
solutions, seeking to develop non-EPC business
opportunities such as consulting, using computer
simulation and analysis for plant engineering
purposes. Further, while continuing our well-received
Engineering, Procurement, Construction (EPC)
business, we plan to enlarge our operations toinclude PLE, or Plant Lifecycle Engineering. This will
enable us to create a database that we can jointly
access and operate with our customers, thereby
enabling Chiyoda to participate in plant planning,
maintenance, operation, revamping, and businessplan for future investment. In other words, we will
become a one-stop provider of everything ourcustomers need in the way of plant development andoperations. With ChAS, we intend to concentrate on
leading-edge technology that offers very high added
value. The new company possesses a high level ofcomputer-based know-how concerning highresolution analysis, plant lifecycle and plant risk
management, and utilization of space environment.
We believe the Company will be able to offer highvalue solutions while developing its new businessmodel.

Plant Lifecycle Engineering
Planning

Basic
Engineering

Detailed
Engineering

Construction

Operation
Maintenance

Renovation
Dismantling

DSS: Decision Support System
EPC: Engineering Procurement & Construction
O&M: Operation & Maintenance
KNM: Knowledge Management

i-PLANT21 ® DSS

Advanced High-Temperature Air Combustion
Technology (HiCOT)
Chiyoda’s on-going demonstrations of the advanced
high-temperature air combustion technology (HiCOT)
for steam reforming processes have been eminently
successful. We plan to aggressively market the newtechnology to such facilities as hydrogen plants,
synthesis gas plants (GTL, DME, methanol, etc.), andethylene plants.
The pilot tests were part of the five-year plan for thehigh-temperature air combustion technology
development project entrusted by the New Energy
and Industrial Technology Development Organization(NEDO). Chiyoda, Nippon Furnace, Tohoku
University, and Hokkaido University work together ondevelopment of advanced high-temperature air
combustion technology for steam reforming reaction
processes. The consortium successfully conducted
the hydrogen generation test with a new pilot steam
reformer, utilizing the HiCOT technology.
The HiCOT project aims at developing new steam
reformers with higher hydrogen generation efficiency,
more compact size, more than 30% greater energy
efficiency, at least 30% reductions in CO and NOx
emissions, and so on. The successful tests of HiCOT
technology underscores the viability of hightemperature air combustion technology for steam
reformers.
Chiyoda owns almost a 60% share of the domestichydrogen plant engineering and construction market.
We will use the current pilot facility to further study
the mechanism of heat transfer in high-temperature
air combustion and build new technology on that
data. At the same time, we will aggressively
commercialize the HiCOT technology through sales
promotional activities to hydrogen plants, new

i-PLANT21 ® EPC
i-PLANT21 ® O&M
Dynamic
Simulation

Virtual Plant
Engineering

i-PLANT21 ® KNM
Virtual Plant
Operatione-Business
Operationi-PLANT21 ® Engineering Data Warehouse (DWH)
A view of the HiCOT demonstration plant

11 CHIYODA CORPORATION

facilities for synthesis gas plants, ethylene plants,
and so on.

CO2 Reforming Process
Chiyoda develops a highly energy-efficient process to
produce synthesis gas from natural gas, using our
proprietary CO2 reforming catalyst. The catalyst
resists carbon formation well and can produce
synthesis gas with the optimum mol ratio of H2/CO
for direct FT synthesis, methanol, and DME.
For our new process, Chiyoda is participating in a
GTL project sponsored by the Japan National Oil
Corporation (JNOC), and has constructed a pilot
plant of 7 BPSD capacity in Yufutsu, Hokkaido. The
pilot plant will undergo an 18-month performance
test beginning in August 2002.

Rotary Regenerative Combustion System (RRX®)
Chiyoda’s proprietary RRX® system received the
Chairman’s Award for Excellent Energy Conservation
Equipment 2002, from the Japan Machinery
Federation. The award was presented for Chiyoda’shigh thermal efficiency rotary regenerative burner
technology.
The RRX® Burner combines a rotary-type heatexchanger into one unit. The hot flue gas is cooled as
it passes through the heat accumulator and released
into the atmosphere as exhaust. The great
technological leap forward is in the continuous heatexchange of the heat accumulator by a slowly
revolving rotary duct.
The radiant section alone results in over 90% of heatefficiency and a significant (30-50%) decrease infuel consumption and CO2 production. It also makes
the unit much more compact, and measurably
reduces (more than 30%) NOx emissions. The
technology can be applied to existing furnaces andChiyoda already has a track record for installing thetechnology without trouble at Toa Oil Co., Ltd., andmore than ten other companies.

Residuum Oil Supercritical Extraction (ROSE™)
Process
Chiyoda entered into an agreement with Kellogg
Brown and Root, Inc., (KBR) of the United States forthe exclusive marketing rights to its residual oil
treatment technology called Residuum Oil
Supercritical Extraction (ROSE™) process in Japan.
ROSE™ is a supercritical solvent extraction process
for the treatment of residual oil from such sources as
heavy fuel oil and asphalt. The technology offers
significant economic advantages when compared toother deasphalting technology because it separates
the solvent and the deasphalted oil (DAO) at
supercritical conditions. More than 32 ROSE™ units
have been licensed worldwide.
Demand for heavy fuel oil in the Japanese market isdecreasing, and petroleum refiners must study
residue upgrading projects, which will likely include
process units such as cokers and gasification.
ROSE™ benefits a refiner by providing a low-capital
approach for upgrading atmospheric and vacuum
residues. As such, it has many applications as aneffective solution under the difficult investment
climate that faces the Japanese refining industry.
The combination of ROSE™ with integrated
gasification combined cycle (IGCC) has already been
proved overseas. In addition, the technology will soon
be combined with multi-purpose gasification
furnaces so extracted asphaltene can be used as
feedstock to produce synthesis gas for use as fuel,petrochemical feedstock, power, and steam
generation, thereby contributing to improving the
economic performance of the refinery.
Chiyoda promotes the ROSE™ process for various
refinery applications, including its combination withmulti-purpose asphaltene gasification. And we
expect the market for the ROSE™ process to
expand.

Heat Accumulator
Air Supply Path

Ambient Air
Hot Exhaust Gas

Cold Exhaust Gas
Exhaust Gas Discharge Path

The signing ceremony
for ROSE™ technology
RRX® mechanism
CHIYODA CORPORATION 12

FINANCIAL SECTIONCONSOLIDATED FIVE-YEAR FINANCIAL SUMMARY

Years ended March 31

Millions of Yen
2002

2001

2000

1999

1998

For the Year:¥ 128,665¥ 168,963¥ 312,234¥ 303,476

Cost of Construction contracts ...........................................

Construction contracts ....................................................... ¥ 141,506
136,826

131,240

154,112308,703329,446

Income (loss) before income taxes and minority interests ...

1,861(3,357)

1,553(10,534)(49,796)

Net income (loss) ..............................................................

121(4,607)698(11,623)(51,795)

Total assets ....................................................................... ¥ 115,137¥ 114,652¥ 153,099¥ 213,920¥ 257,746

15,023

8,181

6,208

5,931

At Year-End:Total shareholders’ equity ..................................................

15,103

Working capital..................................................................

1,387

2,241

(19,594)(22,942)(29,624)

Current ratio (%) ...............................................................

101.6

102.6

84.5

87.7

87.4

Long-term debt..................................................................

10,672

11,346

12,545

13,5187,569

Per Common Share (Yen):
Net income (loss) .............................................................. ¥

0.7

¥

(20)

¥

3

¥

(58)

¥

(265)

Shareholders’ equity ..........................................................

81

81

33

25

30

185,429

185,429

248,357

248,357

195,224

Other Statistics:
Number of shares outstanding* (thousands) ......................
* At year-end

13 CHIYODA CORPORATIONCONSOLIDATED FINANCIAL REVIEW

Operating Results
In fiscal 2002, ended March 31, 2002, revenues fromconstruction contracts on a consolidated basis totaled¥141,506 million (US$1,064 million), an increase of 10.0%
from the previous year.
The cost of construction contracts increased by 4.3%, to¥136,826 million (US$1,029 million).
Selling, general and administrative expenses decreased by¥1,432 million, to ¥9,827 million (US$74 million) through the
reduction of fixed expenses.
Other income consisting of gains on discharge of liabilities,
gains on sales of investments in subsidiaries, interest anddividend income and others decreased by ¥3,469 million, to¥7,008 million (US$53 million).

previous year. This rise was due mainly to an increase incurrent assets of ¥432 million to ¥88,125 million (US$663
million).
On the other side of the balance sheet, total current liabilities
increased by ¥1,286 million, to ¥86,738 million (US$652
million), mainly because of a rise in advance receipt on
Construction Contracts. As a result, the current ratio was
101.6%.
Total shareholders’ equity rose by ¥80 million, to ¥115,137
million (US$866 million). The shareholders’ equity ratio was
13.1%. The accumulated deficit decreased by ¥23,772
million to ¥2,517 million (US$19 million). In an effort todecrease the deficit, the Company refrained from paying cash
dividends for fiscal 2002.

Cash FlowsAs a result, the income before taxes and minority interests was¥1,861 million (US$14 million), up from a loss of ¥3,357
million (US$25 million) in the previous year, and the net profit
per common share amounted to ¥0.7 (US$ 0.005).
During the year, the Company was awarded a total of¥217,997 million (US$1,677 million) in contracts.
International contracts accounted for ¥128,069 million(US$985 million), or 58.7% of the total, with domestic
contracts making up the remaining ¥89,928 million (US$692
million). The backlog of contracts as of March 31, 2002, stoodat ¥246,137 million (US$1,893 million), with domestic
contracts accounting for ¥ 98,638 million (US$759 million) of
the total and international contracts for ¥147,499 million(US$1,134 million).

Net cash provided by operating activities totaled ¥10,418
million (US$78 million), comprising ¥121 million (US$1
million) in net profit and ¥5,347 million (US$41 million) in
outflows from non-cash adjustments, and ¥15,734 million(US$118 million) provided by net changes in operating assets
and liabilities.
Net cash used in investing activities amounted to ¥205 million(US$2 million). Comprising cash inflows from proceeds fromsales of investment securities and investment in subsidiaries,
which offset outflows for purchase of property, plant andequipment and other investing activities.
Net cash used in financing activities totaled ¥5,876 million(US$44 million), due primarily to ¥5,266 million (US$40
million) cash outflows for repayment of short-term bank loans.

Financial Position
As of March 31, 2002, total assets amounted to ¥115,137
million (US$866 million), ¥485 million higher than those of the

As a result, cash and cash equivalents, end of year, increasedby ¥4,764 million, to ¥38,677 million (US$291 million).

CHIYODA CORPORATION 14

CONSOLIDATED BALANCE SHEETS
Chiyoda Corporation and Consolidated Subsidiaries
March 31, 2002 and 2001

Thousands of
U.S. Dollars(Note 1)ASSETS
Millions of Yen
2002

2001

2002

¥ 33,913$ 290,805

CURRENT ASSETS:
Cash and cash equivalents...................................................................................... ¥ 38,677
Short-term investments ...........................................................................................

1,774

1,731

13,338Notes and accounts receivable — trade (Notes 3 and 8) ..........................................

25,334

19,312

190,481

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

(368)

(148)

(2,767)

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

2,246

12,92016,887

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

9,755

10,50673,346

Jointly controlled asset of joint venture ....................................................................

8,222

2,728

61,820Prepaid expenses and other (Note 7) ......................................................................

2,485

6,731

18,684

Total current assets.........................................................................................

88,12587,693

662,594

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

2,691

2,703

20,233

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

6,731

6,609

50,609PROPERTY, PLANT AND EQUIPMENT (Note 8):

Machinery and equipment ......................................................................................

1,220

2,237

9,173

Tools, furniture and fixtures.....................................................................................

5,424

6,601

40,782

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

16,06618,151

120,797

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

(8,524)(10,656)(64,090)

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

7,542

7,495

56,707

1,759

2,504

13,226

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

1

INVESTMENTS AND OTHER ASSETS:
Investment securities (Note 5).................................................................................
Investments in and advances to unconsolidated
subsidiaries and associated companies (Notes 6 and 7) ..................................

5,020

4,689

37,744Long-term loans ......................................................................................................

19

26

143

Long-term receivables (Note 7) ...............................................................................

14,194

13,526

106,722

Other investments ...................................................................................................

5,342

5,995

40,165

Allowance for doubtful accounts (Note 7) ................................................................

(6,864)(7,276)(51,609)

Total investments and other assets ..................................................................

19,47019,464

146,391

TOTAL ....................................................................................................................... ¥115,137¥ 114,652$ 865,692

See notes to consolidated financial statements.

15 CHIYODA CORPORATION

Thousands of
U.S. Dollars(Note 1)

LIABILITIES AND SHAREHOLDERS’ EQUITY
Millions of Yen
2002

2001

2002

25,232$ 125,316

CURRENT LIABILITIES:
Short-term bank loans (Notes 8 and 11).................................................................. ¥ 16,667¥

Current portion of long-term debt (Notes 8 and 11) .................................................

789

720

5,932

Notes and accounts payable — trade (Notes 3 and 11) ............................................

40,34342,038303,331

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

19,536

8,269

146,887

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

9,403

9,193

70,700Total current liabilities .....................................................................................

86,73885,452

652,166

Long-term debt (Notes 8 and 11) ............................................................................

10,672

11,34680,241

Liability for retirement benefits (Note 9) ...................................................................

2,025

2,330

15,225

Other liabilities ........................................................................................................

106

63

797

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

12,803

13,73996,263MINORITY INTERESTS .............................................................................................

493

438

3,707

NON-CURRENT LIABILITIES:CONTINGENT LIABILITIES (Notes 3 and 14)
SHAREHOLDERS’ EQUITY (Note 10):
Common stock — authorized,
650,000 thousand shares in 2002 and 2001;
issued and outstanding,
185,429 thousand shares in 2002 and 2001........................................................

12,02812,02890,436

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

5,819

29,47343,752

Accumulated deficit ................................................................................................

(2,517)(26,289)(18,925)

Net unrealized loss on available-for-sale securities...................................................

(1)

Foreign currency translation adjustments ................................................................

(220)

(178)

(1,654)

Treasury stock — at cost, 40,521 shares in 2002 and 50,561 shares in 2001 ..........

(6)

(11)

(45)

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

15,10315,023

113,556

TOTAL ....................................................................................................................... ¥ 115,137¥ 114,652$ 865,692(8)

CHIYODA CORPORATION 16

CONSOLIDATED STATEMENTS OF OPERATIONS
Chiyoda Corporation and Consolidated Subsidiaries
Years Ended March 31, 2002 and 2001

Thousands of
U.S. Dollars(Note 1)Millions of Yen
2002

CONSTRUCTION CONTRACTS (Notes 3 and 4)......................................................... ¥ 141,506
COST OF CONSTRUCTION CONTRACTS (Notes 3 and 4) ......................................... 136,826

2001

2002

¥ 128,665
131,240$1,063,955
1,028,767

Gross profit (loss) ............................................................................................

4,680(2,575)35,188SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Note 13) ........................

9,827

11,25973,887

Operating loss .................................................................................................

(5,147)(13,834)(38,699)

662
(844)
2,871
406
526
871
(580)
1,385
800
384
964
(144)
(334)

1,149
(1,561)
19,778(2,295)2,829
673(5,027)

4,977(6,346)
21,586
3,052
3,955
6,549
(4,361)
10,414
6,015
2,887
7,248
(1,083)(2,511)OTHER INCOME (EXPENSES):Interest and dividend income (Note 3) ....................................................................
Interest expense .....................................................................................................
Gain on discharge of liabilities (Note 11) .................................................................
Gain (loss) on sales of marketable and investment securities (Note 5)......................
Equity in earnings of associated companies .............................................................
Foreign exchange gain ............................................................................................
Provision for doubtful accounts ...............................................................................
Gain on sales of investments in subsidiaries ............................................................
Gain on sale of intellectual property right .................................................................
Reversal of liability for retirement benefits to directors..............................................
Reversal of additional retirement benefits to employees ...........................................
Loss on disposal of property and land......................................................................
Loss on devaluation of investment securities............................................................
Reversal of allowance for financial support to subsidiaries .......................................
Amortization of negative goodwill .............................................................................
Loss on devaluation of property, plant and equipment .............................................
Additional retirement benefits paid to employees .....................................................
Other — net.............................................................................................................
Other income — net.........................................................................................

41

1,000
48
(2,019)(2,847)(1,251)

309

7,008

10,477

52,691

INCOME (LOSS) BEFORE INCOME TAXES AND MINORITY INTERESTS — (Forward) .... ¥

1,861

¥

INCOME TAXES (Note 12):Current ...................................................................................................................
Deferred .................................................................................................................
Total ...............................................................................................................

1,786
(88)
1,698

1,220
(16)
1,204

13,429(662)
12,767MINORITY INTERESTS IN NET INCOME..................................................................

(42)

(46)

(315)

NET INCOME (LOSS) ................................................................................................ ¥121¥(3,357)(4,607)$$Yen

NET INCOME (LOSS) PER COMMON SHARE (Note 2.o) .......................................... ¥See notes to consolidated financial statements.

17 CHIYODA CORPORATION

0.7¥

13,992

910
U.S. Dollars

(20)

$

0.005

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Chiyoda Corporation and Consolidated Subsidiaries
Years Ended March 31, 2002 and 2001

Millions of Yen

Thousands
Shares ofCommonStock

BALANCE, APRIL 1, 2000 ................................

248,357

Reverse stock split (Note 10) ........................... (124,178)

Additional
Paid-in
CapitalCommonStock(14,176)
5,819

14,176

5,819

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

(4,607)

Increase in treasury stock (50,561 shares).......

¥

Foreign currency translation adjustments.........
BALANCE, MARCH 31, 2001 ...........................

Treasury
Stock

14,176(14,176)

61,250

Unrealized
Foreign
Loss onCurrency
Available-for-sale Translation
Securities
Adjustments¥ 20,385 ¥ 23,654 ¥ (35,858)

Transfer to deficit (Note 10).............................
Issuance of common stock (Note 10)...............

Accumulated
Deficit(11)¥ (178)
185,429

12,028Transfer to deficit (Note 10).............................

29,473(26,289)(23,654)

23,654

(178)

(11)

Increase in accumulated deficit for decreasein consolidated subsidiaries ..........................

(3)

Net income .....................................................

121

Decrease in treasury stock (10,040 shares) .....

5

Net unrealized loss on available-for-sale securities...

¥(1)

Foreign currency translation adjustments.........
BALANCE, MARCH 31, 2002 ........................... 185,429(42)¥ 12,028 ¥5,819 ¥ (2,517) ¥(1) ¥ (220) ¥(6)

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

Additional
Paid-in
CapitalAccumulated
Deficit

BALANCE, MARCH 31, 2001 ...........................

$ 90,436 $ 221,602 $(197,662)

Transfer to deficit (Note 10).............................

(177,850) 177,850

Unrealized
Foreign
Loss onCurrency
Available-for-sale Translation
Securities
Adjustments

TreasuryStock$ (1,338) $(83)

Increase in accumulated deficit for decreasein consolidated subsidiaries ..........................

(23)

Net income .....................................................

910

Decrease in treasury stock (10,040 shares) .....
Net unrealized loss on available-for-sale securities...

38$

Foreign currency translation adjustments.........
BALANCE, MARCH 31, 2002 ...........................

(8)
(316)

$ 90,436 $ 43,752 $(18,925) $(8) $(1,654) $(45)

See notes to consolidated financial statements.

CHIYODA CORPORATION 18

CONSOLIDATED STATEMENTS OF CASH FLOWS
Chiyoda Corporation and Consolidated Subsidiaries
Years Ended March 31, 2002 and 2001

Thousands of
U.S. Dollars(Note 1)Millions of Yen
2002

2001

OPERATING ACTIVITIES:
Income (loss) before income taxes and minority interests........................................... ¥ 1,861
Adjustments for:
Income taxes paid ................................................................................................
(1,718)Depreciation and amortization...............................................................................
1,026
Provision for (reversal of) allowance for doubtful accounts — net............................
(193)
Reversal of retirement benefits — net ....................................................................
(305)
Reversal of additional retirement benefit to employees...........................................
(964)
Reversal of allowance for financial support to subsidiaries .....................................
(Gain) loss on sales of investment securities — net ................................................
(406)
Gain on sales of investment in subsidiaries............................................................
(1,385)
Loss on devaluation of investment securities .........................................................
334
Loss on disposal of property, plant and equipment ................................................
144
Loss on devaluation of property, plant and equipment ...........................................
Gain on discharge of liabilities...............................................................................
(2,871)Gain on sale of intellectual property right...............................................................
(800)
Foreign exchange gain — net ................................................................................
(493)
Equity in earnings of associated companies...........................................................
(526)
Changes in operating assets and liabilities:
Decrease (increase) in notes and accounts receivable and costs andestimated earnings on long-term construction contracts.................................
4,652
Decrease in costs of construction contracts in process......................................
751
Decrease in interest and dividend receivable ....................................................
759(Decrease) increase in trade notes and accounts payable .................................
(1,695)
Increase (decrease) in advance receipts on construction contracts ................... 11,267
Other — net ..........................................................................................................
980¥ (3,357)

2002

$

(847)
1,751
4,923
(2,935)

13,992(12,917)
7,714(1,451)(2,293)(7,248)(1,000)2,295(3,053)(10,414)
2,511
1,083

2,019
(19,778)(245)(2,829)(21,586)(6,015)(3,707)(3,955)(4,478)
1,499
2,342
5,442
(1,319)1,119

34,977
5,647
5,707(12,744)
84,714
7,369

Total adjustments ........................................................................................

8,557(12,041)

64,339Net cash provided by (used in) operating activities .......................................

10,418(15,398)

78,331

1,152
749
(501)
(484)
112

22,6358,662
5,632(3,767)(3,639)842

INVESTING ACTIVITIES:
Proceeds from sales of investment securities .............................................................
Proceeds from sales of investment in subsidiaries......................................................
Purchase of investment securities..............................................................................
Purchases of property, plant and equipment..............................................................
Proceeds from sales of property, plant and equipment...............................................
Proceeds from collections of long-term receivables ....................................................
Other — net ...............................................................................................................

(1,233)

(213)
2,528
7,337
(841)

Net cash (used in) provided by investing activities........................................

(205)

31,446FORWARD ................................................................................................................... ¥10,213¥ 16,048

FINANCING ACTIVITIES:Net decrease in short-term bank loans ......................................................................
Proceeds from long-term debt ...................................................................................
Repayments of long-term debt...................................................................................
Proceeds from issuance of common stock .................................................................
Other — net ...............................................................................................................

(5,266)80(698)(9,271)(1,541)$

76,790(39,594)602(5,248)

8(34,903)
10,050(2,864)
11,638(3)

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

(5,876)(16,082)(44,180)

FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS .

428

661

3,218

NET INCREASE IN CASH AND CASH EQUIVALENTS ...............................................................

4,765

627

35,828

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR.......................................

33,91333,286

254,985

DECREASE IN CASH AND CASH EQUIVALENTS ELIMINATION FROM CONSOLIDATION(1)CASH AND CASH EQUIVALENTS, END OF YEAR ....................................................... ¥ 38,677
See notes to consolidated financial statements.

19 CHIYODA CORPORATION

60(8)¥ 33,913$ 290,805

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Chiyoda Corporation and Consolidated Subsidiaries
Years Ended March 31, 2002 and 2001

1. BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in theJapanese Securities and Exchange Law and its related accounting regulations, and in conformity with accounting principles andpractices generally accepted in Japan, which are different in certain respects as to application and disclosure requirements ofInternational Accounting Standards. 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 andjurisdictions other than Japan.
In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to theconsolidated 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 2001 financial statements in order for them to conform to theclassifications used in 2002. In accordance with accounting procedures generally accepted in Japan, certain comparative
disclosures are not required to be and have not been presented herein.
The consolidated financial statements are stated in Japanese yen, the currency of the country in which Chiyoda Corporation (the"Company") is incorporated and principally operates. The translations of Japanese yen amounts into U.S. dollar amounts areincluded solely for the convenience of readers outside Japan and have been made at the rate of ¥133 to $1, the approximate rateof exchange at March 31, 2002. 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 for the year ended March 31, 2002, include the accounts of the Company and its 27 (32 in
2001) significant subsidiaries (together, the "Group"). Under the control or influence concept, those companies in which the
Parent, directly or indirectly, has a control over operations are fully consolidated.
Investments in 6 (4 in 2001) associated companies are accounted for by the equity method. Investments in the remaining
unconsolidated subsidiaries and associated companies are stated at cost. If the equity method of accounting had been applied tothe 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 theequity method over its equity in the net assets at the respective dates of acquisition, have been charged to income at the time ofacquisition as the amount involved was not material.
All significant intercompany balances and transactions have been eliminated in consolidation. All material unrealized profit
included in assets resulting from transactions within the Group is eliminated.
b.Construction Contracts
Revenues on construction contracts greater than ¥5 billion and having a construction duration of more than 18 months arerecognized 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 stated as costs ofconstruction contracts in process.
Payments received in excess of costs and estimated earnings on the contracts, which are accounted for by the percentage-ofcompletion 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 to income and areincluded in costs of construction contracts.
c.Cash and Cash Equivalents
Cash equivalents are short-term investments that are readily convertible into cash and that are exposed to insignificant risk ofchanges in value. Cash equivalents include time deposits and short-term investments, all of which mature or become due within 3months of the date of acquisition.
d.Investment Securities
Effective April 1, 2000, the Group adopted a new accounting standard for financial instruments, including investment securities.
Under this standard, all applicable securities are classified as available-for-sale securities.
The new standard allows companies to delay the implementation of fair value reporting and continue to utilize the cost basis for up
to 1 year after the effective date. Effective April 1, 2001, available-for-sale securities are reported at fair value, with unrealized
gains and losses, net of applicable taxes, reported in a separate component of shareholders’ equity. As a result of implementationof fair value reporting, there is no influence on income before income taxes.
Non-marketable securities are stated at cost determined by the moving-average method. For other than temporary declines in fairvalue, non-marketable securities are reduced to net realizable value by a charge to income.

CHIYODA CORPORATION 20

e.Allowance for Doubtful Accounts
The allowance for doubtful accounts is stated in amounts considered to be appropriate based on the Group’s past credit loss
experience and an evaluation of possible losses in the receivables outstanding.
f.Property, Plant and Equipment
Property, plant and equipment are stated at cost. Depreciation is computed using the declining-balance method, except for thebuildings owned by the Company and leased property owned by a certain leasing subsidiary which are computed using thestraight-line method, based on the estimated useful lives of the assets. The range of useful lives is from 38 to 64 years forbuildings, from 4 to 13 years for machinery and equipment and from 2 to 15 years for tools, furniture and fixtures.
g.Other Assets
Intangible assets are carried at cost less accumulated amortization, which is calculated by the straight-line method over theirestimated useful lives. Software for internal use is amortized on a straight-line basis over its estimated useful life (5 years at the
maximum).
h.Retirement Benefits
Employees of the Company and its certain consolidated subsidiaries are under most circumstances, entitled to certain lump-sum
severance payments and pension payments.
Effective April 1, 2000, the Company and domestic consolidated subsidiaries adopted a new accounting standard for employees’
retirement benefits and accounted for the liability for retirement benefits based on the projected benefit obligations and plan assets
at the balance sheet date.
The transitional obligation of ¥12,123 million ($91,150 thousand), determined as of April 1, 2000, is being amortized and charged
to income over 15 years and presented as operating expense in the statements of operations.
Retirement benefits to directors, officers and corporate auditors are provided at the amount which would be required if all directors,
officers and corporate auditors terminated at the end of each period.
i.Research and Development Costs
Research and development costs are charged to income when incurred.
j.Leases
All leases are accounted for as operating leases. Under Japanese accounting standards for leases, finance leases that deem totransfer ownership of the leased property to the lessee are to be capitalized, while other finance leases are permitted to beaccounted for as operating lease transactions if certain "as if capitalized" information is disclosed in the notes to the lessee’s
consolidated financial statements.
k.Income Taxes
The provision for income taxes is computed based on the pretax income included in the consolidated statements of operations.
The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of
temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred taxes are measured byapplying currently enacted tax laws to the temporary differences.
l.Foreign Currency Transactions
All short-term and long-term monetary receivables and payables denominated in foreign currencies are translated into Japanese
yen at the exchange rates at the balance sheet date. The foreign exchange gains and losses from translation are recognized in thestatement of operations to the extent that they are not hedged by forward exchange contracts.
m.Foreign Currency Financial Statements
The balance sheet accounts of the consolidated foreign subsidiaries are translated into Japanese yen at the current exchange rate
as of the balance sheet date except for shareholders’ equity, which is translated at the historical rate. Differences arising from suchtranslation were shown as "Foreign currency translation adjustments" in a separate component of shareholders’ equity.
Revenue and expense accounts of consolidated foreign subsidiaries are translated into Japanese yen at the current exchange rate
as of balance sheet date.
n.Derivative Financial Instruments
The Company uses a variety of derivative financial instruments, including foreign currency forward contracts and currency options
as a means of hedging exposure to foreign currency risks. The Company does not enter into derivatives for trading or speculative
purposes.
Derivative financial instruments and foreign currency transactions are classified and accounted for as follows: (a) all derivatives berecognized as either assets or liabilities and measured at fair value, and gains or losses on derivative transactions are recognized in
the income statement and (b) for derivatives used for hedging purposes, if derivatives qualify for hedge accounting because of highcorrelation and effectiveness between the hedging instruments and the hedged items, gains or losses on derivatives are deferred
until maturity of the hedged transactions.
The foreign currency forward contracts are utilized to hedge foreign exchange risks. Certain assets and liabilities on construction
contracts denominated in foreign currencies are translated at the contracted rates if the forward contracts qualify for hedge
accounting.
Currency options are also utilized to hedge foreign exchange risks. These options which qualify for hedge accounting aremeasured at market value at the balance sheet date and the unrealized gains or losses are deferred until maturity as other liability
or asset.

21 CHIYODA CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

o.Per Share Information
The computation of net income (loss) per share is based on the weighted average number of shares of common stock outstanding
during each year. The average number of common shares used in the computation was 185,415 thousand shares for 2002 and
235,034 thousand shares for 2001.
Fully diluted net income per share is not disclosed because it is anti-dilutive.

3. TRANSACTIONS WITH UNCONSOLIDATED SUBSIDIARIES AND ASSOCIATED COMPANIES
Significant transactions with and balances due from/(to) unconsolidated subsidiaries and associated companies are summarized asfollows:
Thousands of
U.S. Dollars
2002

Millions of Yen
2002
2001

Transactions for the Year Ended March 31
Construction contract revenues ................................................................................ ¥ 36,485
Purchases................................................................................................................
857
Interest and dividend income ...................................................................................
74
Balances at March 31
Notes and accounts receivable — trade ....................................................................
78
Notes and accounts payable — trade ........................................................................
(238)¥ 12,679
2,009
75$274,323
6,444
556

33

586
(1,789)The Company has guaranteed the indebtedness of certain unconsolidated subsidiaries and associated companies in the amount of¥4,719 million ($35,481 thousand) and ¥4,017 million at March 31, 2002 and 2001, respectively.

4. CONSTRUCTION CONTRACTS
Costs and estimated earnings recognized with respect to construction contracts which are accounted for by the percentage-ofcompletion method at March 31, 2002 and 2001, are as follows:
Millions of Yen
2002
2001

Costs and estimated earnings .................................................................................... ¥ 50,511 ¥ 53,461
Amounts billed ..........................................................................................................
(48,265)(40,541)
Net ................................................................................................................ ¥

2,246

¥

12,920Thousands of
U.S. Dollars
2002$ 379,782(362,895)$

16,887

Costs of construction contracts in process which are accounted for by the completed-contract method at March 31, 2002 and2001, are as follows:
Millions of Yen
2002
2001

Costs incurred........................................................................................................... ¥ 32,932 ¥ 32,872
Amounts billed ..........................................................................................................
(23,177)(22,366)
Net ................................................................................................................ ¥

9,755

¥

10,506

Thousands of
U.S. Dollars
2002$ 247,609(174,263)$

73,346CHIYODA CORPORATION 22

5. INVESTMENT SECURITIESInvestment securities at March 31, 2002 and 2001, consisted of the following:
Millions of Yen
2002
2001

Thousands of
U.S. Dollars
2002

Equity securities ........................................................................................................ ¥Trust fund investments..............................................................................................

1,759

¥

2,502
2

$

13,226

Total .............................................................................................................. ¥

1,759

¥

2,504

$

13,226The carrying amounts and aggregate fair values of investment securities at March 31, 2002, were as follows:

Cost

Available-for-sale — Equity securities......................................... ¥

45

Cost

Available-for-sale — Equity securities......................................... $338

Millions of Yen
Unrealized
Unrealized
Gains
LossesFair Value

¥

¥

5

¥

3

47

Thousands of U.S. Dollars
Unrealized
Unrealized
Gains
LossesFair Value

$

$

38

$

22

354

Available-for-sale securities whose fair value is not readily determinable at March 31, 2002 and 2001, were as follows:
Carrying AmountThousands of
U.S. Dollars
2002

Millions of Yen
2002
2001

Equity securities ........................................................................................................ ¥

1,712

¥

2,024

$

12,872

Proceeds from sales of available-for-sale securities for the years ended March 31, 2002 and 2001, were ¥1,184 million ($8,902
thousand) and ¥22,542 million, respectively. Gross realized gains and losses on these sales, computed on the moving average
cost basis, were ¥448 million ($3,368 thousand) and ¥42 million ($316 thousand), respectively, for the year ended March 31,
2002 and ¥2,308 million and ¥4,665 million, respectively, for the year ended March 31, 2001.

6. INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED SUBSIDIARIES AND ASSOCIATEDCOMPANIES
Investments in and advances to unconsolidated subsidiaries and associated companies at March 31, 2002 and 2001, were as
follows:
Millions of Yen
2002
2001

Thousands of
U.S. Dollars
2002

Investments .............................................................................................................. ¥Advances ..................................................................................................................

2,805
2,215

¥

3,209
1,480

$

21,09016,654

Total .............................................................................................................. ¥

5,020

¥

4,689

$

37,744

7. LONG-TERM RECEIVABLES
Long-term receivables at March 31, 2002 and 2001, include receivables of ¥8,153 million ($61,301 thousand) and ¥8,129 million,
respectively, from Nigerian National Petroleum Corporation ("NNPC") relating to services performed by the Company in 1995. The

23 CHIYODA CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Company has negotiated payment terms with NNPC and had collected ¥7,337 million during the year ended March 31, 2001, but
the repayment schedule of the remaining balance is not determined due to the economical and political circumstances in Nigeria.
The Company also has receivables and other assets in the amount of ¥7,615 million ($57,256 thousand) and ¥6,351 million atMarch 31, 2002 and 2001, respectively, from Karunaphuli Fertilizer Company Limited ("KAFCO"), a Bangladesh company, and its
related parties as follows. In March 2001, KAFCO, its shareholders and banks reached a basic agreement about financial
restructuring under the supervision of the Bangladesh government and KAFCO has started making payments based on theschedule defined in the financial restructuring plan.
Millions of Yen
2002
2001

Prepaid expenses and other ...................................................................................... ¥Investments in and advances to unconsolidated
subsidiaries and associated companies ..................................................................
Long-term receivables ...............................................................................................
Allowance for doubtful accounts ................................................................................

49
2,904
4,662
(640)

Total .............................................................................................................. ¥

6,975

¥

232

Thousands of
U.S. Dollars
2002

$

368

2,082
4,037
(647)
¥

5,704

21,83535,053(4,812)$52,444

8. SHORT-TERM BANK LOANS AND LONG-TERM DEBT
Short-term bank loans bear interest at rates ranging from 1.625% to 7.950% and from 1.375% to 8.050% at March 31, 2002 and2001, respectively. Short-term bank loans at March 31, 2002 and 2001, consisted of the following:
Millions of Yen
2002
2001

Thousands of
U.S. Dollars
2002

Collateralized............................................................................................................. ¥ 3,135
Uncollateralized ........................................................................................................
13,532¥

3,655
21,577$

23,571
101,745

Total .............................................................................................................. ¥ 16,667¥

25,232$ 125,316

Long-term debt at March 31, 2002 and 2001, consisted of the following:
Millions of Yen
2002
2001

Thousands of
U.S. Dollars
2002

Long-term loans from banks and insurance companies, maturing serially through 2010,
with interest rates ranging from 0.900% to 6.900% (2002) and from 1.725% to 6.900% (2001):
Collateralized ......................................................................................................... ¥962 ¥Uncollateralized .....................................................................................................
10,499Total ..............................................................................................................
11,461
Current portion ......................................................................................................
(789)

1,146
10,92012,066
(720)

$

7,233
78,94086,173(5,932)

Total .............................................................................................................. ¥ 10,672

11,346$80,241¥

Subordinated loans in the amount of ¥10,000 million ($75,188 thousand) from The Bank of Tokyo-Mitsubishi, Ltd. were includedin ‘Uncollateralized’ at March 31, 2002 and 2001.
Annual maturities of long-term debt at March 31, 2002, were as follows:
Millions of Yen
Year Ending March 31
2003 ........................................................................................................................................... ¥789
2004 ...........................................................................................................................................
256
2005 ...........................................................................................................................................
102
2006 ...........................................................................................................................................
10,101
2007 and thereafter ....................................................................................................................
213

Total.................................................................................................................................... ¥ 11,461

Thousands of
U.S. Dollars

$

5,932
1,925
767
75,947
1,602$ 86,173CHIYODA CORPORATION 24

The following assets were pledged as collateral for short-term debt at March 31, 2002:
Thousands of
U.S. Dollars

Millions of Yen

Land ........................................................................................................................................... ¥Buildings and structures — net of accumulated depreciation ...........................................................

1,285
673

$ 9,662
5,060

Total.................................................................................................................................... ¥1,958$ 14,722

The following assets were pledged as collateral for long-term debt at March 31, 2002:
Thousands of
U.S. Dollars

Millions of Yen

Notes and accounts receivable — trade ........................................................................................... ¥Land ...........................................................................................................................................
Buildings and structures — net of accumulated depreciation ...........................................................

394
695
762

$ 2,962
5,226
5,729

Total.................................................................................................................................... ¥1,851$ 13,917

9. RETIREMENT BENEFITS
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 50 years of age or older 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 not reach 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 include retirement benefits to directors, officers and corporate auditors in the amount of ¥196 million ($1,473
thousand) and ¥534 million for the years ended March 31, 2002 and 2001, respectively. The retirement benefits to directors andcorporate auditors are paid subject to the approval of the shareholders.
The liability for employees’ retirement benefits at March 31, 2002 and 2001, consisted of the following:
Millions of Yen
2002
2001

Projected benefit obligation ....................................................................................... ¥ 31,890 ¥ 31,008
Fair value of plan assets ............................................................................................
(15,952)(16,854)
Unrecognized transitional obligation ..........................................................................
(10,507)(11,372)
Unrecognized actuarial loss.......................................................................................
(3,607)(1,017)
Prepaid pension cost.................................................................................................
531
Net liability..................................................................................................... ¥

1,829

¥

1,796

Thousands of
U.S. Dollars
2002$ 239,774(119,940)(79,000)(27,120)38$

13,752The components of net periodic benefit costs for the years ended March 31, 2002 and 2001, are as follows:
Millions of Yen
2002
2001

Service cost............................................................................................................... ¥Interest cost ..............................................................................................................
Expected return on plan assets..................................................................................
Amortization of transitional obligation.........................................................................
Recognized actuarial loss ..........................................................................................
Net periodic benefit costs............................................................................... ¥25 CHIYODA CORPORATION

Thousands of
U.S. Dollars
2002

1,042 ¥
862
(544)
808
78

1,202
982
(841)
841

$

7,835
6,481
(4,090)
6,075
586

2,246

2,184

$

16,887¥

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Assumptions used for the years ended March 31, 2002 and 2001, are set forth as follows:
Discount rate...............................................................................................................................
Expected rate of return on plan assets .........................................................................................
Recognition period of actuarial gain/loss ......................................................................................
Amortization period of transitional obligation ................................................................................

2002

2001

2.5 %
3.5 %
13 years
15 year

3.0 %
5.0 %
13 years
15 years

10. SHAREHOLDERS’ EQUITY
The authorized number of shares was 570,000 thousand shares of common stock and 80,000 thousand shares of non-voting,non-cumulative preferred stock at March 31, 2002 and 2001.
Japanese companies are subject to the Japanese Commercial Code (the "Code") to which certain amendments became effectivefrom October 1, 2001.
Prior to October 1, 2001, the Code required at least 50% of the issue price of new shares, with a minimum of the par value thereof,
to be designated as stated capital as determined by resolution of the Board of Directors. Proceeds in excess of amounts
designated as stated capital were credited to additional paid-in capital. Effective October 1, 2001, the Code was revised andcommon stock par values were eliminated resulting in all shares being recorded with no par value.
Prior to October 1, 2001, the Code also provided that an amount at least equal to 10% of the aggregate amount of cash dividends
and certain other cash payments which are made as an appropriation of retained earnings applicable to each fiscal period shall beappropriated and set aside as a legal reserve until such reserve equals 25% of stated capital. Effective October 1, 2001, therevised Code allows for such appropriations to be set aside as a legal reserve until the total additional paid-in capital and legal
reserve equals 25% of stated capital. The amount of total additional paid-in capital and legal reserve which exceeds 25% of statedcapital can be transferred to retained earnings by resolution of the shareholders, which may be available for dividends. The
amount of legal reserve, which is included in accumulated deficit, totals ¥85 million ($639 thousand) and ¥2,975 million as ofMarch 31, 2002 and 2001, respectively. Under the Code, companies may issue new common shares to existing shareholders
without consideration as a stock split pursuant to a resolution of the Board of Directors. Prior to October 1, 2001, the amountcalculated by dividing the total amount of shareholders’ equity by the number of outstanding shares after the stock split could not
be less than ¥50. The revised Code eliminated this restriction.
Prior to October 1, 2001, the Code imposed certain restrictions on the repurchase and use of treasury stock. Effective October 1,
2001, the Code eliminated these restrictions allowing companies to repurchase treasury stock by a resolution of the shareholders at
the general shareholders meeting and dispose of such treasury stock by resolution of the Board of Directors after March 31, 2002.
The repurchased amount of treasury stock cannot exceed the amount available for future dividend plus amount of stated capital,
additional paid-in capital or legal reserve to be reduced in the case where such reduction was resolved at the general shareholders
meeting.
The Code permits companies to transfer a portion of additional paid-in capital and legal reserve to stated capital by resolution of theBoard of Directors. The Code also permits companies to transfer a portion of unappropriated retained earnings, available fordividends, to stated capital by resolution of the shareholders.
At a special meeting of the shareholders held on January 17, 2001, the shareholders approved a reduction in the authorized
number of shares of common stock by 130,000,000 shares to 650,000,000 shares. In addition, the shareholders approved a 2 to
1 reverse stock split whereby, on February 20, 2001, a total of 124,178 thousand shares were redeemed totaling ¥14,176 million.
At a Board of Directors meeting held on March 28, 2001, the Directors approved a transfer of ¥14,176 million from additional paidin capital as a reduction in accumulated deficit in order to improve the financial stability of the Company.
On March 30, 2001, the Company issued 61,250,000 shares to certain existing shareholders. The issue price was ¥190 per sharefor total proceeds of ¥11,638 million, which were applied equally to common stock and additional paid-in capital.
At the general shareholders meeting held on June 28, 2001, the shareholders approved a transfer of ¥23,654 million ($177,850
thousand) from additional paid-in capital as a reduction in accumulated deficit in order to improve the financial stability of theCompany.

11. GAIN ON DISCHARGE OF LIABILITIESA new restructuring plan was introduced in 2000. It consists of the three major initiatives. They are; (1) financial restructuring toreinforce the Company’s financial position and structure, (2) business plan focusing on the core business areas, and (3)streamlining the corporate operation by reducing fixed costs. The Company requested and received approval from certain financial
institutions and a company to waive repayment of outstanding liabilities to these entities which were consisted of short-term bankloans, notes payable and long-term debt. The discharge of these liabilities of ¥2,871 million ($21,586 thousand) and ¥19,778

CHIYODA CORPORATION 26

million was recorded as a gain in the statements of operations for the years ended March 31, 2002 and 2001, respectively.

12. INCOME TAXESThe Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, in the aggregate,
resulted in normal effective statutory tax rate of approximately 42% for the years ended March 31, 2002 and 2001.
The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets and liabilities at
March 31, 2002 and 2001, are as follows:
Millions of Yen
2002
2001

Deferred tax assets:
Tax loss carryforwards.............................................................................................. ¥ 44,918 ¥ 41,960
Cost of construction contracts ..................................................................................
4,922
5,725
Retirement benefits..................................................................................................
338
630
Loss on long-term construction contracts..................................................................
217
245
Allowance for doubtful accounts...............................................................................
2,606
2,807
Loss on devaluation of costs of construction contracts in process..............................
928
365
Loss on devaluation of property, plant and equipment ..............................................
770
1,489
Additional retirement benefits paid to employees ......................................................
54
657
Other .......................................................................................................................
1,783
3,630
Less valuation allowance .......................................................................................... (56,304)(57,270)

Thousands of
U.S. Dollars
2002$ 337,729
37,0082,541
1,632
19,594
6,977
5,789
406
13,406(423,338)

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

232

238

1,744

Deferred tax liabilities ..................................................................................................

45

44

338

Net deferred tax assets ................................................................................................ ¥

187

¥

194

$

1,406

Reconciliations between the normal effective statutory tax rate and the actual effective tax rates reflected in the accompanying
consolidated statements of operations for the years ended March 31, 2002 and 2001, are as follows:
2002

2001

Normal effective statutory tax rate ................................................................................................
Expenses not deductible for income tax purposes ........................................................................
Effect of taxation on dividends .....................................................................................................
Inhabitant taxes per capita levy....................................................................................................
Foreign income taxes ..................................................................................................................
Valuation allowance for deferred tax assets ..................................................................................
Equity in earnings of associated companies .................................................................................
Operating losses of subsidiaries ...................................................................................................
Lower income tax rates applicable to income in certain foreign countries......................................

42 %
8
(7)
3
32
77
(12)
(47)
(5)

42 %
(4)
2
(2)
(7)
(84)
35
(17)
(1)

Actual effective tax rate ...............................................................................................................

91 %(36) %

Under the current Japanese tax regulations, a net operating loss can be carried forward for five years and deducted from any
future taxable income. The Company and consolidated subsidiaries have a net operating loss carryforward of approximately¥106,947 million ($804,113 thousand) at March 31, 2002.

13. RESEARCH AND DEVELOPMENT COSTS
Research and development costs charged to income were ¥388 million ($2,917 thousand) and ¥399 million for the years ended
March 31, 2002 and 2001, respectively.

27 CHIYODA CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

14. LEASESIncome from equipment leases held by a subsidiary for the years ended March 31, 2002 and 2001, was ¥152 million ($1,143
thousand) and ¥268 million, respectively.
The Company and a subsidiary lease certain machinery, computer equipment, office space and other assets. Total rental
expenses under the above leases were ¥86 million ($647 thousand) and ¥110 million for the years ended March 31, 2002 and2001, respectively.
Pro forma information of leased property under finance leases that do not transfer ownership of the leased property to the lessee onan "as if capitalized" basis for the years ended March 31, 2002 and 2001, was as follows:Year Ended March 31, 2002

For Lessor
Millions of Yen
MachineryandEquipment

Tools,
Furnitureand Fixtures

Thousands of U.S. Dollars

Other

Total

MachineryandEquipment

Tools,
Furnitureand Fixtures

Other

Total

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

571
481

¥

208
176

¥

64
57

¥

843
714

$4,293
3,616$1,564
1,323

$

481
429

$6,3385,368

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

90

¥

32

¥

7

¥

129

$

$

$

52

$

677

241

970

For Lessor
Millions of Yen
MachineryandEquipment

Tools,
Furnitureand Fixtures

Thousands of U.S. Dollars

Other

Total

MachineryandEquipment

Tools,
Furnitureand Fixtures

Other

Total

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

27
5

¥

444
123

¥

50
28

¥

521
156

$

203
38

$3,338
924

$

376
211

$3,9171,173

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

22

¥

321

¥

22

¥

365

$

165

$2,414$165$2,744

Millions of Yen

Thousands of U.S. Dollars

Obligations
Unearnedunder
Lease Income Finance Lease(As Lessor)(As Lessee)

Obligations
Unearnedunder
Lease Income Finance Lease(As Lessor)(As Lessee)

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

88
64

¥

129
236

$

Total

152

¥

365

$ 1,143......................................................................................................... ¥Year Ended March 31, 2001

662
481

$

970
1,774

$ 2,744

For Lessor
Millions of Yen
MachineryandEquipment

Tools,
Furnitureand Fixtures

Thousands of U.S. Dollars

Other

Total

MachineryandEquipment

Tools,
Furnitureand Fixtures

Other

Total

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

685
540

¥

290
216

¥

70
50

¥ 1,045
806

¥

7
2

¥

362
161

¥

45
15

¥

414
178

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

145

¥

74

¥

20

¥

¥

5

¥

201

¥

30

¥

236

239

CHIYODA CORPORATION 28

Millions of Yen
Obligations
Unearnedunder
Lease Income Finance Lease(As Lessor)(As Lessee)

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

138
146

¥

74
162

Total .......................................................................................................................................................... ¥

284

¥

236

Depreciation expense for lessor, which is reflected in the accompanying consolidated statements of operations, computed by thestraight-line method was ¥119 million ($895 thousand) and ¥176 million for the years ended March 31, 2002 and 2001,
respectively.
Depreciation expense for lessee, which is not reflected in the accompanying consolidated statements of operations, computed by
the straight-line method was ¥87 million ($654 thousand) and ¥110 million for the years ended March 31, 2002 and 2001,
respectively.
The amounts of unearned lease income and obligations, acquisition cost and depreciation under finance leases include theimputed interest income portion and interest expense portion, respectively.

15. DERIVATIVESThe Company enters into foreign exchange forward contracts and currency option contracts to hedge foreign exchange risk
associated with certain assets and liabilities on construction contracts denominated in foreign currencies. It is the Company’s
policy to use derivatives only for the purpose of reducing foreign exchange risks associated with such assets or liabilities. The
Company does not hold or issue derivatives for trading purposes.
Because the counterparties to these derivatives are limited to major international financial institutions, the Company does not
anticipate any losses arising from credit risk.
The basic policies for the use of derivatives are approved by the management and the execution and control of derivatives arecontrolled by the Company’s financing department. Each derivative transaction is periodically reported to the Company’s
accounting department and executive officers.
Forward exchange contracted amounts which are assigned to associated assets or liabilities and are reflected on the balance sheet
at year end are not subject to the disclosure of market value information.
All of the derivative contracts outstanding at March 31, 2002 and 2001, are qualified for hedge accounting and disclosures ofmarket value information are not required to be and have not been presented herein.

16. CONTINGENT LIABILITIESAt March 31, 2002, the Group had the following contingent liabilities:
Millions of Yen

Guarantees and similar items of bank loans .................................................................................... ¥6,306

Thousands of
U.S. Dollars$ 47,414

17. SUBSEQUENT EVENTS
a.Stock Option PlanAt the general shareholders meeting held on June 27, 2002, the shareholders of the Company approved the stock option plan for
the Company’s directors, officers and key employees.
The plan provides for granting options to the Company’s directors, officers and key employees to purchase up to 8,000 thousand
shares of the Company’s common stock in the period from July 1, 2004 to June 30, 2009. The options will be granted at an
exercise price of 105% of the averaged fair market value of the Company’s common stock during one month prior to the month ofoption grant. The Company plans to issue acquired treasury stock upon exercise of the stock options.
b.Appropriation of Retained Earnings
The following proposed disposition of accumulated deficit of the Company at March 31, 2002, was approved at the general

29 CHIYODA CORPORATIONNOTES TO CONSOLIDATED FINANCIAL STATEMENTS

shareholders meeting held on June 27, 2002:
Thousands of
U.S. Dollars

Millions of Yen

Accumulated deficit to be carried forward ....................................................................................... ¥7,290$ 54,812

18. SEGMENT INFORMATION
Information about foreign operations and sales to foreign customers of the Company and consolidated subsidiaries for the years
ended March 31, 2002 and 2001, was as follows:(1)Foreign Operations
Year Ended March 31, 2002

Millions of Yen
JapanConstruction contract revenue:
Outside customers.................. ¥132,983
Intersegment ..........................
21,912

Asia¥8,113521

North
America

Europe

¥

13
235

¥ 397
13

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

154,895

8,634

248

410

Operating expenses ...................

160,487

8,291

251

576

Operating income (loss) ............. ¥ (5,592)

¥ 343

¥

Subtotal

Eliminations(Corporate)¥ 141,506
22,681¥ (22,681)

Other

¥

26

(3) ¥ (166) ¥ (26) ¥Consolidated¥ 141,506

164,187(22,681)

141,506

169,631(22,978)

146,653297(5,147)(5,444) ¥Other income and expenses — net

7,008

Income before income taxes andminority interests ....................

¥

Assets ...................................... ¥117,089¥8,170

¥ 179

¥ 100

EuropeNorth
AmericaYear Ended March 31, 2002

¥ 206

¥ 125,744

1,861¥ (10,607) ¥ 115,137

Thousands of U.S. Dollars
Japan

Asia

Other

Construction contract revenue:
Outside customerss ................ $ 999,872 $61,000 $98 $ 2,985
Intersegment ..........................
164,752
3,917 1,767
98
Total............................... 1,164,624

64,917

1,865

3,083

Operating expenses ................... 1,206,669

62,3381,888

4,331 $

Operating income (loss) ............. $ (42,045) $ 2,579 $Subtotal

Eliminations(Corporate)

Consolidated$1,063,955$1,063,955
170,534 $(170,534)
195

1,234,489(170,534) 1,063,955

1,275,421(172,767) 1,102,654(23) $(1,248) $ (195) $(40,932) $2,233(38,699)

Other income and expenses — net
Income before income taxes andminority interests ....................
Assets ...................................... $ 880,368 $61,429 $1,346 $

52,691$

13,992752 $1,549 $ 945,444 $ (79,752) $ 865,692

CHIYODA CORPORATION 30

Year Ended March 31, 2001

Millions of Yen
JapanConstruction contract revenue:
Outside customers.................. ¥ 120,186
Intersegment ..........................
17,707

Asia¥6,902
998

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

137,893

Operating expenses ...................

151,224

7,261

Operating income (loss) ............. ¥(13,331)¥ 639

Europe

¥

7,900

North
America

Other

Subtotal

Eliminations(Corporate)

Consolidated

53
765¥1,52462¥ 128,665
19,532¥ (19,532)

818

1,586

148,197(19,532)

128,66536

160,949(18,450)

142,499(36) ¥(12,752) ¥(1,082)(13,834)

816
¥

2

1,612
¥

¥

(26) ¥¥ 128,665

Other income and expenses — net

10,477

Loss before income taxes andminority interests ....................
Assets ...................................... ¥ 116,792¥¥7,281¥ 143

Notes: 1. The Company and consolidated subsidiaries are summarized into fivesegments by geographic area based on the countries where thecompanies are located.
The segments consisted of the following countries in 2002 and 2001:
Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia, Thailand
Europe: United Kingdom, Germany, Poland

¥ 344

¥ 207

¥ 124,767(3,357)¥ (10,115) ¥ 114,652

North America: United States of America
Other: Nigeria
2. Corporate assets mainly consist of long-term loans and investment
securities of the Company. Corporate assets as of March 31, 2002 and2001, were ¥3,887 million ($29,226 thousand) and ¥2,661 million,
respectively.

(2) Sales to Foreign Customers
Year Ended March 31, 2002

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

Millions of Yen
Asia

The Near andMiddle East

Other

Total

¥ 21,588¥ 16,539¥ 6,956

15.26%

11.69%

4.91%¥ 45,083
141,506
31.86%Asia

The Near andMiddle East

Other

Total

$124,353$ 52,301$ 338,970
1,063,955

Year Ended March 31, 2002

Thousands of U.S. Dollars

Overseas sales (A) ...................................................................................... $162,316
Consolidated sales (B) ................................................................................
Year Ended March 31, 2001

Millions of Yen
Asia

Overseas sales (A) ...................................................................................... ¥ 40,290
Consolidated sales (B) ................................................................................
(A)/(B) ....................................................................................................... 31.31%
Note: The Company and consolidated subsidiaries are summarized into threesegments by geographic area based on the countries where the companies
are located.
The segments consist of the following countries:
Year Ended March 31, 2002
Asia: China, Singapore, Indonesia and others
The Near and Middle East: Qatar, Iran and others
Other: Venezuela, Egypt and others

The Near andMiddle East

Other

Total

¥ 18,640¥ 5,228

14.49%

4.06%¥ 64,158
128,665
49.86%

Year Ended March 31, 2001
Asia: Singapore, Indonesia, China and others
The Near and Middle East: Oman, Saudi Arabia, Qatar and others
Other: Azerbaijan and others

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, thepresentation of industry segment information is not required under Japanese accounting standards.

31 CHIYODA CORPORATION

OPINION OF INDEPENDENT PUBLIC ACCOUNTANTS

INDEPENDENT AUDITORS’ REPORTTo 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, 2002 and 2001, and the related consolidated statements of operations, shareholders’ equity, and cash flows forthe 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 testsof the accounting records and such 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, 2002 and 2001, and the results of their operations andtheir cash flows for the years then ended in conformity with accounting principles and practices generally accepted inJapan applied on a consistent basis.
As described in Note 7, the consolidated balance sheets at March 31, 2002 and 2001 include accounts receivableand other assets from Nigerian National Petroleum Corporation and Karunaphuli Fertilizer Company Limited.
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 arepresented solely for the convenience of readers outside Japan.

June 27, 2002

The accompanying financial statements are not intended to present the financial position, results of operations andcash flows in accordance with accounting principles and practices generally accepted in countries and jurisdictions
other than Japan. The standards, procedures and practices to audit such financial statements are those which are
generally accepted and applied in Japan.

CHIYODA CORPORATION 32

CORPORATE DIRECTORY

OFFICESMAJOR SUBSIDIARIES AND AFFILIATED COMPANIESYokohama Head Office12-1, Tsurumichuo 2-chome, Tsurumi-ku
Yokohama 230-8601, Japan
Tel: 81-45-521-1231 Fax: 81-45-503-0200

OVERSEAS
Chiyoda International Corporation
1177 West Loop South, Suite 680
Houston, TX 77027, U.S.A.
Tel: 1-713-965-9005 Fax: 1-713-965-0075

Koyasu Office
13, Moriya-cho 3-chome, Kanagawa-ku
Yokohama 221-0022, Japan
Tel: 81-45-441-1268 Fax: 81-45-441-1297
Research & Development Center
1-1, Minamiwatarida-cho, Kawasaki-ku
Kawasaki 210-0855, Japan
Tel: 81-44-328-6264 Fax: 81-44-328-6272

Chiyoda International Limited
4th Floor Dorland House, 20 Regent Street
London SW1Y 4PH, U.K.
Tel: 44-20-7867-1221 Fax: 44-20-7867-1414

Chiyoda Nigeria Limited
Lagos Head Office
Plot PC-12, 1st Floor, (All CO Plaza)
Afribank Street, Victoria Island
Lagos, Nigeria
Tel: 234-1-2613291 Fax: 234-1-2612565
Kaduna Branch Office
Kachia Road, 17KM, P.O. Box 1144
Kaduna, Nigeria

Chiyoda Singapore (Pte) Limited
14 International Business Park
Jurong East, Singapore 609922
Tel: 65-6563-3488 Fax: 65-6567-5231

Chiyoda & Public Works Co., Ltd.
No.1 (A), Thanthumar Road
29 Ward Thuwunna, Thingangyun Township
Yangon, Union of Myanmar
Tel: 95-1-565615/579330 Fax: 95-1-579870

Chiyoda Asia Pacific (Pte) Limited
14 International Business Park
Jurong East, Singapore 609922
Tel: 65-6425-0368 Fax: 65-6569-6102

DOMESTIC
Chiyoda Kosho Co., Ltd.
Plant Engineering, Construction and
Maintenance, and Insuance Service

Chiyoda Malaysia Sdn. Bhd.
15th Floor, Menara Maxisegar, Jalan Pandan
Indah, 4/2 Pandan Indah, 55100
Kuala Lumpur, Malaysia
Tel: 60-3-4297-0988 Fax: 60-3-4297-0800

Chiyoda Keiso Co., Ltd.
Erectical and Instrumentation Engineering,
Equipment Supply, Installation and MaintenanceSendai, Osaka, Mizushima, Okinawa

OVERSEAS NETWORK
Abu Dhabi Office
P.O. Box 43928 Clock Tower Office Floor No.02
Suite No.0204 Al Najda Street
Abu Dhabi, United Arab Emirates
Tel: 971-2-671-7161 Fax: 971-2-671-7162
Beijing Office
Room No.1028, China World Trade Center No.1
Jianguomenwai Avenue
Beijing 100004, China
Tel: 86-10-6505-2678 Fax: 86-10-6505-1118
Doha Office
Al Mana Tower
Airport Road, Doha, Qatar
P.O. Box 20243
Tel:974-4621-673, 4622-875 Fax:974-4622-716
Jakarta 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
Shanghai Office
Room 1501 CIMIC Tower
No.800 Shang Cheng Rd.
Pu Dong New Area
Shanghai, 200120, China
Tel: 86-21-6875-0034 Fax: 86-21-6875-0037
Singapore Office
14 International Business Park
Jurong East, Singapore 609922
Tel: 65-6560-1274 Fax: 65-6560-2563
Tehran Office
2nd Floor, No.16, Mahtab St.
Aftab St. Vanak Avenue
Tehran 19949, Iran
Tel: 98-21-803-6391, 805-8592
Fax: 98-21-805-8967
Singapore Human Resources Office
10 Anson Road #28-06A International Plaza
Singapore 079903
Tel: 65-6324-0080 Fax: 65-6324-0090

33 CHIYODA CORPORATION

Chiyoda (Thailand) Limited
Bangkok Head Office
5th Floor, Dusit Thani Office Bldg.
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
P.T. Chiyoda International Indonesia
7th Floor, ASPAC Kuningan Building
JI. H.R. Rasunasaid Kav., X-2 No.4
Jakarta 12950, Indonesia
Tel: 62-21-252-1066 Fax: 62-21-252-1101
L&T-Chiyoda Limited
B.P. Estate, National Highway No.8, Chhani,
Baroda-391740, Gujarat State, India
Tel: 91-265-771003/772855
Fax: 91-265-774985
C&E Corporation
C&E Corporation Bldg.
Meralco Avenue Corner, General Araneta Street
Pasing City, Metro Manila, Philippines
Tel: 63-2-636-1001~8
Fax: 63-2-636-1013/1022
Chiyoda Petrostar Ltd.
Al-Khobar Office
P.O. Box 31707, Al-Khobar 31952
The Kingdom of Saudi Arabia
Tel: 966-3-864-0839 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

Chiyoda Techno Ace Co., Ltd.
Consulting, Engineering and Construction of
Pharmaceutical Plants, Laboratories andResearch Centers
Chiyoda Advanced Solutions Corporation
Computer Aided Engineering Analysis, Plant Life
Cycle Engineering and Risk Management,
Utilization of Space Environment, etc
U-Tech Consulting Co., Ltd.
Consulting for Industrial and Social, Regional
Development
IT Engineering Limited
IT Solutions and Software Development
Arrow Business Consulting Corporation
Consulting Services for Finance and Accounting
Arrowhead International Corporation
Travel and Air Cargo Agent, Spare Parts Supply
Arrow Human Resources Co., Ltd.
Human Resources Supply and Training(As of September 30, 2002)

BOARD OF DIRECTORS ANDEXECUTIVE OFFICERSCORPORATE DATA

President & CEO
Nobuo Seki*

Established
January 20, 1948

Executive Vice Presidents
Akira Yamamura*John L. Rose*
Naotake Naritomi*

Number of Employees
2,535[Parent Company: 1,026]

Senior Managing Director
Hiizu Ichikawa*
Managing Directors
Atsuo Minamoto
Takashi Kubota
Hiroshi Kobayashi
Director
Albert J. Stanley

Main Business Activities
Planning, design, procurement, construction, commissioning,and operation assistance of public- and private-sector facilities
in such areas as gas, petroleum, petrochemicals, chemicals,coal, power generation, nonferrous metal processing,biochemistry, pharmaceutical manufacturing, medical
treatment, food processing, factory automation and computerintegrated manufacturing, theme park development, spacedevelopment, and distribution as well as related facilities forpollution prevention, environmental preservation andenhancement, and disaster prevention

Corporate Auditors
Michihiko Kawana
Yoshio Ishiwata
Hideaki Fujioka
Yukihiro Imadegawa

Paid-in-Capital¥12,027,676,450

Senior Executive Officers
Yoshihiro Shirasaki
Akira Kadoyama
Hideo Nakatani
Hiroshi Shibata

Number of Shareholders
21,105

Executive Officers
Madoka Koda
Wataru Shimono
Junichi Sakaguchi
Takashi Yamamoto

Transfer Agent of Common Stock
The Mitsubishi Trust and Banking Corporation
11-1, Nagatacho 2-chome, Chiyoda-ku, Tokyo 100-8212,
Japan

Capital Stock Issued
185,428,529 shares

Stock Exchange Listings
Tokyo, Osaka, Nagoya, Sapporo(As of March 31, 2002)* Representative Directors(As of June 27, 2002)

CHIYODA CORPORATION 34

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