Annual Report 2010
For the year ended March 31,2010

Profile
Since its establishment in 1948, Chiyoda Corporation has engaged in engineering and construction work and services at innumerable industrial plants both inJapan and overseas in the fields of oil, natural gas and other energy sources; petrochemicals and chemicals; pharmaceuticals; and general industrial machinery.
Thirty-eight years ago in 1972, Chiyoda’s founder was already emphasizing in abooklet entitled Legacy for the Twenty-first Century that sustainable social development should progress by harmonizing nature and industrial development.
We were one of the first companies to state our intention to contribute to sustainable social development through our engineering and technology by providing
appropriate solutions to the various energy and environmental issues we currently
face, and have been putting those words into action ever since. This booklet isavailable on our website.
With over 60 years of technological experience, Chiyoda is working to build on
its position as the “Reliability No. 1” project company with a high level of customer
and investor trust, not only in terms of technology but also in terms of our people
and management. At the same time, we will continue to improve our financial
strength and to raise our corporate value.

Corporate
Philosophy

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

Forward-Looking Statements:
This annual report contains forward-looking statements about Chiyoda Corporation’s outlooks, plans, forecasts, results andother items that may take place in the future. Such statements are based on data available as of June 24, 2010. Unknown risks
and other uncertainties that happen in the future may cause our actual results to be different from the forward-looking statements contained in this report. The risks and uncertainties include business and economic conditions, competitive pressure,changes in laws and regulations, addition or elimination of products, and exchange rate fluctuation, among others.

*1Contents
Profile2 Financial Highlights

4 To Our Stakeholders
Topics
8 Won Order for Papua New Guinea LNG Project
8 Focus on Metallurgical Smelting and Refining
9 Start of Naoetsu LNG Receiving Terminal Construction Project
9 Subsidiary in Brazil Open for Business*2

Corporate Governance
10 Management Structures
10 Internal Control Structure
10 Compliance
12 Board of Directors, Corporate Auditors and Executive Officers*3

13 Management’s Discussion and Analysis
17 Consolidated Financial Statements
54 Global Network
56 Corporate Information*4*1,*2: Courtesy of Qatargas Operating Company Limited*3: Courtesy of Sakhalin Energy Investment*4: CCR System Construction Project for Seibu Oil’s Yamaguchi Refinery,
UOP CCR PlatformingTM unit/UOP PolybedTM PSA unit

Financial Highlights
Years Ended March 31, 2010, 2009, 2008, 2007 and 2006
Thousands of
U.S. dollars

Millions of yen

2010

2009

2008

2007

2006

2010

Revenues¥312,985¥446,438¥603,559¥484,895¥390,875$3,365,440

Cost of revenue

298,766

427,461

583,035

445,158

360,322

3,212,545

Operating income

1,702

7,227

8,839

28,70020,72918,301

Income before income taxes
and minority interests

4,714

9,651

18,99137,935

21,906

50,695

Net income

2,953

6,498

9,640

23,531

19,40031,762

Total assets¥328,174¥357,816¥378,819¥442,952¥279,721$3,528,755

Total equity

149,253

145,917

81,637

77,41455,5081,604,871

Long-term debt

10,00010,00422

10,067

10,168

107,763

Current ratio (%)

175.2

161.1

115.0

118.9

125.1

Earnings per share (EPS)¥11.39¥25.58¥50.15¥122.41¥101.27

Book value per share (BPS)

573.61561.12422.24400.56288.88

3.5

7.5

10.0

15.0

10.0

Return on assets (ROA)

1.4

3.1

4.7

10.2

10.0

Return on equity (ROE)

2.0

5.7

12.2

35.5

42.0

For the YearAt Year-End

Per Common Share(Yen and U.S. dollars)

Dividends per share

Ratios (%)

Notes: 1. U.S. dollar amounts are translated, for convenience only, at the rate of ¥93 = US$1, the approximate exchange rate at March 31, 2010.
2. Yen amounts are rounded down to the nearest million. U.S. dollar amounts and percentages are rounded to the nearest unit.

 CHIYODA CORPORATION ANNUAL REPORT 2010$0.04

Revenues

Operating Income

Billions of yen

Net Income

Billions of yen

800

30

700

25

603.5

600

20

484.8

500

6

28.7

19.4

4

15

3
10

3
9.6

10

8.8

7.2

6.5

2

5

100
2006

2007

2008

2009

2010

2006

2007

1

0

2010

1
2006

and Shareholders’ Equity Ratio

Billions of yen(%)

Billions of yen

480

40

150

442.9

2007

2008

2009

145.5

Revenues

Dividends per Share and Payout Ratio(%)
148.6 120

(%)

Yen

20

29.3
378.8

360

357.8
328.1

90

30

55.5
42.0

50

10.2

19.8
17.4

3.1
1.4

2007

35.5

10
4.7
2008

2009

2010

0

40.7

0

2006

2007

5.7

2009

2.0
2010

0

Revenues by Industry

12.3

7.5

12

3.5

4

0

2006

2007

2008

2009

2010

6

0

Dividends per Share
Payout Ratio

Shareholders’ Equity
Return on Equity (ROE)
Shareholders’ Equity Ratio

Total Assets
Return on Assets (ROA)

18

10.0

9.9

30
21.4
12.2

2008

19.9

8

45.3

30

24

10.0

60

30.7

15.0

12

81.2

77.0

20

240

16

100

279.7

2010

Revenues

Revenues
Shareholders’Equity, Return on Equity (ROE)

Total Assets andReturn on Assets (ROA)

2006

2009

Revenues

Revenues

10.0

2008

2
3.0

1.7
0

Revenues

0

20

4

200

120

5

23.5

20.7

313.0

300

0

6

30

5

446.4

400 390.8

Billions of yen

Revenues by Region
5%

LNG
Gas Processing *1
Fine Industries*

2

Petroleum and Petrochemicals
Others34%

27%¥312,985
million10%

Overseas
Domestic

46%¥312,985
million54%

24%*1: Classified as “Gas and power utilities” in “Consolidated Financial Results”*2: Classified as “Industrial machinery” and “General chemicals” in“Consolidated Financial Results”

CHIYODA CORPORATION ANNUAL REPORT 2010 

To Our Stakeholders

Takashi Kubota
President & CEO

Career Summary
1969: Joined Chiyoda Corporation
1995: General Manager, Second Overseas Project Division
1998: Director, General Manager, Asia & Australia Project Division
2001: Managing Director, International Project Operation
2004: Director, Deputy General Manager, Domestic Project Operation
2005: Managing Director, Technology & Engineering
2007: President & CEO

 CHIYODA CORPORATION ANNUAL REPORT 2010

Fiscal 2009 Results
From a global perspective, the economic conditions in fiscal 2009—the consolidated period
ended March 31, 2010—were mixed. In someparts of the world, such as Asia, particularly
in China and India, the accelerated pace ofrecovery was obvious. However, the rally inEurope was lukewarm at best and certainly
not hot enough to burn off the recessionary
fog that obscured predictions over the direction that the regional economy would take.
At home, signs of improvement were evident
but lacked the dynamics to support a selfsustained recovery. Consequently, domestic
economic conditions remained difficult.
Given this backdrop, the operating environment for the Chiyoda Group presented opportunities as well as challenges. On the opportunity front, we welcomed the prospect of newcontracts, as large-scale investment plans
began to crystallize everywhere amid growing
future demand for oil and gas. On the challenge
front, we faced increasingly fierce competition
from South Korean contractors whose growthhas been rapid and who maintained a remarkably competitive position.
Capitalizing on the positives and skirting
the negatives, the Chiyoda Group successfully
picked up contracts for engineering, procurement and construction (EPC) services at home
and abroad, including a liquefied natural gas(LNG) plant in Papua New Guinea, as well as
several contracts for engineering design. The
Group also pushed ahead steadily on existing contracts and completed three more trainsat super-large LNG plants under construction in Qatar. We have now finished four ofthe six trains in Ras Laffan, Qatar, including
the train completed in f iscal 2008, witheach train having an annual production
capacity of 7.8 million tonnes.
However, in order to meet the delivery
schedule for LNG plant Train 6 and Train 7 for
Qatargas (3) and (4), the Group was unfortunately required to adopt measures, including
the hiring of more workers, which significantly
eroded the project’s profitability. In light ofthe disappointing results on this project, theGroup will direct its concerted efforts toward
offsetting lost income by being more thoroughin risk management, by raising profitability on
existing projects and working steadily to easethe backlog of new projects.
Despite the challenges encountered in fiscal
2009, the value of new contracts reboundeddramatically, soaring 105.0% over fiscal 2008,
to ¥429,393 million, on a consolidated basis.
The backlog of contracts amounted to ¥536,150
million, up 26.1%. However, revenues fell 29.9%,
to ¥312,985 million, operating income tumbled
76.4%, to ¥1,702 million, and net income
dropped 54.5%, to ¥2,953 million.

Fiscal 2009 Developments
Natural Gas and Electric PowerIn addition to the aforementioned EPC services
for the LNG plant in Papua New Guinea, othernotable overseas contracts included EPC services for a gas processing plant in Qatar andengineering design services for a floating LNG
plant in Brazil.
On the project execution front, the Grouppushed forward with the construction of large
LNG plants and undertook several engineering design/feasibility studies.
Also worth noting, a subsidiary in Qatar
began long-term EPC management services for an
LNG/gas-processing plant. Long-term services

CHIYODA CORPORATION ANNUAL REPORT 2010 support efforts to expand the plant lifecycle engineering business that the Group has promoted formany years already.
In Japan, major orders included engineering
design services associated with the construction of an LNG receiving terminal, and the Group
continued to work on existing domestic orders,
including construction of three LNG receiving
terminals in Niigata and Okayama prefectures.
Petroleum, Petrochemicals and
Gas Chemicals
The Group pooled its resources and expertiseto win overseas contracts related to planned
investment in petroleum refineries by clientsin the Middle East and Southeast Asia. These
joint efforts were successful, securing contracts
for EPC services on a heavy oil cracking unit
in Saudi Arabia and engineering design services on a desulfurization plant in Singapore.
Through the provision of these services, Group
companies will broaden the scope of respective
capabilities and raise Chiyoda’s reputation as a
global operator.
Demand narrowed in Japan, reflecting plansby the petroleum sector to realign and idle facilities and assume a tougher stance on investment
priorities. Nevertheless, the Chiyoda Group wasawarded contracts for services associated withindustrial complexes and for feasibility studies on
projects to enhance competitiveness and makefacilities more energy-efficient.
Work proceeded smoothly on projects inprogress, including the on-schedule completion of a continuous catalyst regeneration-type
catalytic reforming unit.
General Chemicals, Industrial Machinery,
the Environment and Other Sectors
The Group has achieved a measure of success in CHIYODA CORPORATION ANNUAL REPORT 2010

the general chemicals and industrial machinery
sectors through its emphasis on renewable energy,
particularly solar batteries and solar heat energy.
The Group also concentrated on the developmentof eco-related components for vehicles, such aslithium battery parts and advanced material components for on-board use, and is also involved in
the refining of non-ferrous metals.
In the pharmaceuticals sector, the Group has
expanded its presence and successfully secured its
involvement in planned investment projects to build
facilities for antibody drugs and high-activation
drugs typical of anti-cancer agents.

Management Priorities
Although the path toward economic recovery
varies region by region, a common trend has
emerged in the placement of orders. We areseeing an increase in contracts for large plants,
especially from corporations able to take anaggressive approach on investments for future
growth. In this business environment, the Groupwill make every effort to achieve the profit targets stated in the medium-term management
plan “Engineering Excellence, Value Creation
2012,” promote growth strategies and reinforce
its business fundamentals.
Toward this end, we will address the following four issues in fiscal 2010.
1. Win contracts for new projects
We will strive to diversify our overseas pool ofcontracts, not only with new projects in the
LNG and gas sector but also in other sectors,
particularly oil and petrochemicals. To underpin
this effort, we will strengthen our technology
development capabilities, sharpen our costcompetitiveness, and apply newly formulated
strategies to attract the right type of new peopleand keep essential existing personnel andhone their skills.
In Japan, we will look beyond the existing
fields of pursuit, by seeking to utilize overseas
offices and expand our scope of activities sothat we will be in a prime position to be able
to participate in the construction of a broader
range of industrial facilities and be selected for
projects undertaken by domestic clients whoseek to establish a wider presence abroad.
2. Complete work on existing projects
The profitability of some ongoing LNG plant
construction projects in Qatar has beensqueezed significantly by new challenges,
notably a shortage of labor, which pushed
costs beyond initial estimates. To compensate, we will pursue meticulous project management, not only for profit-pinched LNG
projects in Qatar but also for more recently
acquired large-scale projects under construction in other countries.
In addition, we will take positive steps toadopt an even stronger stance on safety andensure that we maintain steady progress on
construction work to buttress the trust that
our clients have in us.
3. Cultivate new businessWe will focus more on environmental activities, where we already boast superior technological capabilities, and for which we utilize a
dedicated internal business execution structure to reinforce our presence in non-EPC
businesses.

which will help forge a business and execution framework that is more finely tuned tothe situation in each region. We will initiate
measures to expand the role of overseas
offices, particularly design subsidiaries, andwill also promote international work demarcation to improve cost-competitiveness.

Return to Shareholders
Targeting a payout ratio of 30%, based on consolidated net income, management subscribes
to a dividend policy that emphasizes return toshareholders while retaining sufficient internal
reserves to fund future business development.
It is with regret, therefore, that the Group’s
performance in fiscal 2009 precipitated a dropin dividends, to ¥3.5 per share. Management
anticipates a year-end dividend of ¥5 per sharefor fiscal 2010.
I rely on our stakeholders to understand thechallenges we still face and realize that we arecommitted to overcoming these obstacles. On
behalf of the Board of Directors, I respectfully
ask for your continued support of Chiyoda andthe Group it leads.

August 2010

Takashi Kubota
President & CEO

4. Grow the overseas network
We will source adequate personnel to execute projects and run operations at local
subsidiaries throughout the Group network,

CHIYODA CORPORATION ANNUAL REPORT 2010 Topics
Won Order for Papua New Guinea LNG Project
A signing ceremony took place in December
2009 in Brisbane, Australia, for a pivotal project.
The project—to build an LNG plant comprising two trains each with a capacity of
3.3 million tonnes — is the first in Papua New
Guinea and calls for construction of facilities for
inlet processing, treating, liquefaction, storageand loading of LNG.
Chiyoda formed a joint venture with JGC
Corporation to provide a strong and efficientorganization for the execution of EPC activities and set the direction that the joint venture
would take in this project.
The lead investor, Exxon Mobil Corporation,stated at the signing ceremony that the projectwill be a catalyst for change in Papua New
Guinea. It will be exceedingly worthwhile froma local perspective, creating an economic
ripple effect that could potentially double
the island country’s gross domestic productand establish a solid foundation for industrial
growth.

Expectations are therefore high, not only forthe plant in operation but also for what
the joint venture will contribute during theconstruction process.

Signing Ceremony in Brisbane, Australia
Singapore
Indonesia
Papua New Guinea

Australia

Focus on Metallurgical Smelting and Refining

Titanium Refinery in Kyushu

In the last few years, worldwide investment
in metallurgical smelting and refining has
picked up at an aggressive pace. Companies
are particularly interested in the extremely

 CHIYODA CORPORATION ANNUAL REPORT 2010sophisticated technologies needed for refining low-grade ore—a process that poses achallenge under existing methods—as well as
high-level techniques for extracting specificmaterials from such ore.
With experience in plant construction incountries all over the world, Chiyoda is vigorously pursuing and undertaking projects athome and abroad. We have established a solid
track record, exemplified by the completionin April 2010 of a titanium refinery in Kyushu,
where we were responsible for the construction of key sections of the facility.

Start of Naoetsu LNG Receiving Terminal Construction Project
In July 2009, Chiyoda kicked off a project toconstruct an LNG receiving terminal for Inpex
Corporation.
In recent years, the soaring price of crude
oil and heightened environmental awareness,particularly the wider interest in reducing
CO2 with cleaner-burning fuels, have fostereda greater demand for natural gas in Japan.
Construction of the Naoetsu LNG Receiving
Terminal will enable Inpex to meet demandwith a solid structure for a stable supply ofnatural gas through a combination of imported LNG and domestic natural gas.
Chiyoda became involved at preliminary
stages, initially in April 2007, with conceptualplans for the terminal and then with engineering designs in August of the same year. After
more than 90 meetings, we were awarded the
EPC contract for terminal construction.

Imported Petroleum and Natural Gas
Imported Petroleum(Hundreds of millions of Kl)

Imported LNG (millions of tons)

4

8,000

3

6,000

2

4,000

1

2,000

0

1975

1980

1985

1990

1995

2000

2005

2007

0
(FY)

Subsidiary in Brazil Open for Business
To reinforce our presence in South America
and promote a more multifaceted, organic
approach in our contact with Petrobras S.A.,
we established a subsidiary—Chiyoda do
Brasil Representações Ltda.—with representative authority in Rio de Janeiro, Brazil.
The opening ceremony was held in July2009 and drew more than 100 guests, including the secretary of energy for the stateof Rio de Janeiro and a solid turnout fromPetrobras—our No. 1 client in the region—
comprising half the invited guests. The success of this event underscores the stellar

reputation we have earned from the oil andgas industry and the high expectations thatcome with this profile.

Opening Ceremony in Rio de Janeiro

CHIYODA CORPORATION ANNUAL REPORT 2010 Corporate GovernanceThe basic premise behind corporate governance within the Chiyoda Group is that the management practices that underpin operations must emphasize corporate social responsibility(CSR) and earn the trust and support of all stakeholders, including shareholders, customers
and employees. We are continuously striving to reinforce our business platform, ensure soundmanagement practices and enhance management transparency in order to sustain quality
growth over the medium to long term. The continuous improvement of corporate governanceand further fortification of our internal control structure are regarded as priority issues, andwe are striving to carry these out. The state of corporate governance within the Company isdescribed below.

Management Structures

execution of operations. The committee also engages in
the preliminary discussion of issues that will be broughtOverview of Corporate Governance Systembefore the Board of Directors for final approval. In prin-and Reasons for Its Adoption

ciple, the Executive Committee meets weekly.

Chiyoda has created its corporate governance system

Chiyoda has four corporate auditors, three ofthat utilizes an internal auditing system in addition to thewhom are full-time auditors and three of whom are ex-

Board of Directors, corporate auditors, the Corporate

ternal auditors. The corporate auditors provide over-

Auditors Committee and independent auditors. The

sight concerning the general execution of duties byCompany has also adopted the executive officer sys-

directors. Two of the corporate auditors are independent

tem in which executive officers and directors assume

executives, and one corporate auditor has considerable

separate functions, with the former shouldering re-expertise in finance and accounting.

sponsibility for day-to-day operations, thus leaving thelatter to focus on decision-making and management

Internal Control Structure

supervision. Executive officers provide regular reportson the status of operations at the monthly meeting of

Chiyoda seeks to maintain an effective and efficientthe Executive Committee, at which directors are also

operation, ensure reliable financial reporting, comply

present.

with prevailing laws and regulations, and protect its

The Board of Directors, comprising nine directors

assets. To this end, the Company has created the follow-

including four representative directors, meets once a

ing internal control structure, based on the features thatmonth. This management group monitors the activi-

define its business activities.

ties of executive officers and ensures that decisions
pertaining to key management issues are made ratio-

Compliancenally and efficiently. To accelerate the decision-making
process and fine-tune decisions according to rapidly

Chiyoda believes that the trust and affinity it has withchanging social and economic conditions, the Board

society and customers underpin the foundation of theof Directors delegates some decision-making authority

Group’s corporate activities. To ensure that the Group’s

to the Executive Committee.

business pursuits conform to social standards, man-

The Executive Committee, which in principle meets

agement seeks unconditional respect from all mem-

weekly, consists of four representative directors, andbers of the Group for domestic and international laws

it makes decisions within its authority regarding theand regulations, global agreements and internal rules.

10 CHIYODA CORPORATION ANNUAL REPORT 2010

Corporate Governance andInternal Control Correlation Chart

Compensation for Directors andCorporate Auditors in Fiscal 2009

General Meeting of Shareholders
Appointment

Appointment

Discussion,
ReportReportCorporate Auditors
Corporate Auditors Committee

Board of Directors
Appointment Audit

Audit

Appointment
Discussion,
ReportExecutive Officers
Board of Executive
Officers

Representative Directors

Internal Control
Steering Committee

Discussion,
ReportOperational Auditing Office

ReportBusiness execution divisions Project Management Administration Dept. CSR Division
Compliance Management Office(Risk managers)
Group Operation Management Dept.
Social Environment Office
Corporate Planning Division
Information Security Management Office
Export Control Office
Administration & Personnel Division
Self-assessment
Crisis managers
Finance Division

Accounting audit

Group companies

Safety, Quality and Environmental (SQE)Division
Health, Safety and Environment (HSE)Internal controls for each area Management Office
Quality Management Office(Units with internal control function)

Arranges organizations
Regular reports, and human resources
including results

Delegates(Proposals)

Executive Committee

ReportInvestigate,
Reference

NumberIndependent Auditors

Directors

Appointment

ReportBasicCompensation

Addition to Reserve
Performancefor Directors’ andlinkedCorporate Auditors’Compensation
Retirement Benefits

Directors

10¥197 million ¥23 million

Corporate
Auditors

4¥74 million¥40 million——

Notes:
1. Total compensation for directors was ¥276 million and for corporate auditors,¥77 million. Total compensation for the four outside executives — threeexternal auditors — was ¥55 million. The total compensation amount in thisnote includes the provision to reserve for directors’ and corporate auditors’
retirement benefits (¥15 million for directors and ¥2 million for corporate
auditors) for before the abolition of the Regulations on Retirement Benefits for
Directors and Corporate Auditors on June 23, 2009.
2. The number of persons shown above indicates the number of directors andcorporate auditors who received payment of compensation during the period
under review, including two directors who stepped down upon the conclusionof the 81st Ordinary General Meeting of Shareholders held on June 23, 2009.
3. In addition to that mentioned above, directors' retirement benefits amounting
to ¥171 million were paid during the current business year. This amountincludes the provision to reserve for directors’ retirement benefits includedin the total compensation for directors and corporate auditors shown insecurities reports of previous years.

To this end, the Company instituted the Groupa lawyer available to everyone in the workplace andcode of conduct in April 2006 and established thestaff who specialize in women’s workplace issues.

Ordinary GeneralOffice
Meeting toof Shareholders
Management
promote wide-

In the fiscal years ended March 2009 and 2010, theComplianceAppointment

Discussion,
ReportAppointment

ReportDirectors

Group companies have accessCorporate
to a complianceAuditors
Board of Directors

Corporate Auditors Committee

Reportoriented(hotline)
Appointment Audit consultation and reporting system
Investigate,
Audit

Appointment

Discussion,
ReportReference

dubbed “Welcome to All about
Compliance,” whose
Delegates
Executive Officers

Representative Directors

Internal Control

Steering Committee
purposequicklydetect(Proposals)
and prevent
any unethiBoard of Executiveis to
Executive
Committee
Officers

including results

ReportSafety, Quality and Environmental (SQE) DivisionInternal controls for each area Management Office
Quality Management OfficeGroup companies

ing unethical conduct and illegal activities by individuals

Business execution divisions Project Management Administration Department CSR Division(Risk managers)
and organizations.
Group Company Management Division Compliance Management OfficeSocial Environmental Office
Corporate Planning Division
Information Security Management OfficeThishotlineisoperated
jointlyby 10 Group
Administration & Personnel Division Export Control OfficeSelf-assessment
CrisisFinance
Divisioncompanies. It has an External Consultationmanagers
Center withAs feedback, Chiyoda reported the measures it

took in each case.
Regarding work environment
improvements
Regarding compliance with
employment regulations
Requests for attention to be
drawn to a specific issue

Accounting audit

Health, Safety and Environment(HSE)
properly processes reports and consultations
regard-(Units with internal control function)

Arranges organizations
Auditing Officecalillegal activities, usingaOperationalframework
that
ReportRegularconduct
reports, and humanor
resources Discussion,

system received reports as follows.
Independent Auditors

spread understanding of complianceissues.
ReportAppointment

March 2009

March 2010

6 cases

3 cases

2 cases

3 cases

0 cases

0 casesOther

3 cases

2 casesTotal

11 cases

8 casesCompliance Consultation and Reporting System “Welcome to All about Compliance”
Corporate Auditors

Executive Committee

President & CEO
Instruction(Remedial Action and Prevention)

External Consultation Center(Lawyer)

CSR Division/Compliance Management Office

Contact

Compliance Staff
Manager

Consultation andReporting

ReportReportConsultation andReportingConsultation andReporting

Feedback

Employees and Temporary Staff (Including Those of Subsidiaries)

CHIYODA CORPORATION ANNUAL REPORT 2010 11
Corporate Auditors

Executive Committee

Executive VP in Charge of CSR

Board of Directors, Corporate Auditorsand Executive Officers(As of July 1, 2010)

Board of Directors

Corporate Auditors

President & CEO

Takashi Kubota *1

Hiroshi Ida *3

Executive Vice President

Yoichi Kanno *1

Wataru Shimono

Executive Vice President

Hiroshi Shibata *1

Masanori Ito *3

Senior Managing Executive Officer

Hiroshi Ogawa *1, 2

Yukihiro Imadegawa *3

Managing Executive Officer

Sumio Nakashima

Managing Executive Officer

Satoru Yokoi

Managing Executive Officer

Kazuo Obokata

Managing Executive Officer

Corporate Planning, Management & Finance
CFO

Project Operations
Project Operations

Business Development Operation
CSR Division, Operational Auditing Office

Hiromi Koshizuka *2
Technology Development
Business Operation

Kazushi Okawa *2

Director*1: Representative Director/Member of Executive Committee*2: New Appointment*3: Outside Corporate Auditor

Executive Officers
Managing Executive Manabu Mitani
Officer
Projects Logistics & Construction

Katsutoshi Kimura *2

Managing Executive Corporate Planning, Management & Finance
Officer
General Manager
Finance Division

Kenjiroh Miura *2Managing Executive Project Operations
Officer
General Manager
Project Planning & Administration
Managing Executive Shougo Shibuya *2
Officer
Technology & Engineering

Masahiko Kojima *2

Managing Executive Corporate Planning, Management & Finance
Officer
General Manager
Corporate Planning Division
Executive Officer

Executive Officer

Toshiyuki Ohnuma
Office of President

Tsuyoshi Kakizaki

General Manager
Project Management Administration Division

Eisaku Yamashita
Executive Officer

Business Development Operation
General Manager
Business Development Division 1

12 CHIYODA CORPORATION ANNUAL REPORT 2010

Koichi Shirakawa

Executive Officer Project Operations
General Manager
International Project Division 2

Takao Kamiji

Technology Development Business Operation
Executive Officer Business Development Operation
General Manager
Strategic Business Development Division

Ryosuke Shimizu

Executive Officer Project Operations
General Manager
Group Operation Division

Kenji Hotta *2

Executive Officer Corporate Planning, Management & Finance
General Manager
Corporate Services & HRM Division

Katsuo Nagasaka *2

Executive Officer Business Development Operation
General Manager
Business Development Division 2
Executive Officer

Seiichiro Ikeda *2

Technology & Engineering

Noriyuki Kasuya *2

Executive Officer Corporate Planning, Management & Finance
General Manager
Corporate Communication Division

Management’s Discussion
and Analysis
Business Results

year, and the contract backlog increased by 26.1%,
to ¥536,150 million. Revenues decreased by 29.9%,

The global economy during the fiscal year ended

to ¥312,985 million. Operating income decreased byMarch 31, 2010 showed some clear signs of recovery,

76.4%, to ¥1,702 million, and ordinary income de-which were especially strong in the Asian countries led

creased by 57.7%, to ¥4,837 million. Net income forby China and India. On the other hand, sluggish recov-

the period was ¥2,953 million, a 54.5% decrease from

ery in European countries continues to exert a negative

the previous fiscal year.

influence on the economic outlook. Although Japan’s
economy has been improving steadily, there are still no

Results by Business Segment

signs of a full-fledged recovery in the foreseeable future.
The business environment surrounding the Chiyoda

Natural Gas and Electric PowerGroup was characterized by rising expectations of win-

The main overseas contracts newly awarded to thening new contracts as more plans for large-scale invest-

Chiyoda Group included an EPC contract for an LNG

ments began to take shape in various regions of theplant in Papua New Guinea, an EPC contract for a gas

world to meet the future demand for oil and gas. On theprocessing plant in Qatar and the basic design work

other hand, the Group is increasingly more exposed tofor a floating LNG plant in Brazil. Meanwhile, work con-intense competition from Korean contractors who havetinued on the construction of a large-scale LNG plant

shown remarkable growth in recent times.

and multiple basic design/investment planning ser-

Under these circumstances, the Chiyoda Group

vices. Furthermore, our Qatar subsidiary commenced

received orders for both domestic and overseas

the work under a long-term EPCm service contract for

EPC contracts, including a contract to construct an

LNG/gas processing plants, awarded during the previ-

LNG plant in Papua New Guinea and multiple basic

ous fiscal year. With these long-term service contracts,

design works. At the same time, the Group diligently

the Chiyoda Group plans to actively promote the plantcontinued with the execution of its existing projects

life-cycle engineering (PLE) business which the Chiyoda

and completed three out of the six trains (each train

Group has been pursuing for some time.

designed to produce 7.8 million tonnes per annum) for

On the domestic front, the Chiyoda Group was

ultra large-scale LNG plants in Qatar, the first train ofawarded new contracts including the basic design

which the Group had already completed in the previous

work for an LNG receiving terminal, while it contin-

period. However, the projects’ profitability deteriorated

ued to execute three EPC contracts for LNG receiving

to a large extent due to some leveraging measures im-

terminals in Niigata and Okayama prefectures and for

plemented, which included increasing the number ofother existing projects.

construction workers in an effort to complete work on
the sixth and seventh trains for the Qatargas LNG plant

Petroleum, Petrochemicals and Gas Chemicals

within the time stipulated in the contract. In response

The Chiyoda Group’s concerted efforts to win oil

to these business issues, it endeavored to recover its

refinery investment projects in the Middle East andperformance by practicing thorough risk management,

Southeast Asia resulted in receiving orders for an EPC

and by improving the profitability of existing contracts

contract in Saudi Arabia for a heavy oil cracking unit

as well as solidly executing the new contracts. Con-and a basic engineering contract for a desulfurization

sequently, new contracts awarded to the Chiyoda

plant in Singapore. Our aim is to strengthen our Group

Group during this fiscal year increased by 105.0%, tocompanies and promote our global operations through¥429,393 million, compared with the previous fiscal

the execution of these projects.

CHIYODA CORPORATION ANNUAL REPORT 2010 13

Domestically, in a market stagnated by shrinking

Cash Flow Analysis

investment plans and the trend of realignment and disuse of facilities in the oil industry, we received engineer-

Assets, Liabilities and Net Assets

ing study contracts for connecting chemical complexes,• Assetscompetitiveness improvement and energy conservation.

Total assets decreased by ¥29,642 million from the

As for project execution, we completed the construction

previous fiscal year. Although cash savings increasedof a CCR (continuous catalytic regeneration) unit.

by ¥4,255 million due to an improved operating cash
flow, current assets decreased by ¥30,128 million

General Chemicals, Industrial Machinery,

due to a ¥3,058 million decrease in jointly controlled

the Environment and Other Sectors

assets of joint ventures through the progress of large-

We achieved some tangible results in the generalscale joint venture projects in Qatar.

chemicals and industrial machinery sectors through• Liabilities

our concerted efforts in facilities for photovoltaic andAlthough there was an increase of ¥15,372 million

solar-powered generation and other renewable energies,in accounts payable for construction, the balance oflithium ion batteries, parts and components fabricatedadvances received on uncompleted projects decreased

with advanced materials for eco-friendly vehicles, andby ¥43,493 million. This resulted in a decrease innon-ferrous metal smelting.

total liabilities of ¥32,977 million compared with the

In the pharmaceuticals sector, our efforts wereprevious fiscal year.

directed towards highly active pharmaceuticals such as• Net assets

antibodies and cancer drugs, which resulted in several

Net assets were ¥149,253 million as the result of aorders being received.

¥1,029 million year-on-year increase in retained earnings due to booking net income. The equity ratio in-

Major contracts included in the consolidated results
for the period

Overseas

Domestic

creased 4.6 points year on year, to 45.3%.
Cash Flows• NG plant Trains 6 & 7 for Ras Laffan Liquefied
L
Natural Gas Co., Ltd. (3) in Qatar (*)•

 NG plant Trains 6 & 7 for Qatar Liquefied Gas Co.,
L
Ltd. (3) and (4) in Qatar•

 l Khaleej Gas Phase 2 project for ExxonMobil
A
Middle East Gas Marketing Ltd. in Qatar (*)

despite a ¥21,398 million decrease in working capital• NG plant Trains 4 & 5 for Qatar Liquefied Gas Co.,
L
Ltd. (2) in Qatar (*)(total in notes and accounts receivable–trade, costs•

 earl GTL project feed gas preparation works forP
Qatar Shell GTL Ltd. in Qatar•

 onstruction of RFCC complex for Taiyo Oil Co.,
C
Ltd.

•

 xpansion of Mizushima LNG receiving terminal forE
Mizushima LNG Co., Ltd.

(*) Projects completed during the period• Cash flow from operating activities
Net cash from operating activities was ¥8,613 million

on uncompleted construction contracts, notes and accounts payable–trade, and advances received on uncompleted construction contracts). This was due to thejointly controlled assets of a joint venture decreasing by¥3,058 million according to the progress of large-scale
JV projects in Qatar, in addition to booking income
before income taxes and minority interests of ¥4,714
million for the fiscal year.
Jointly controlled assets of the joint venture areshown on the JV balance sheet as the assets controlled
by Chiyoda. In real terms, it is equivalent to the portion

14 CHIYODA CORPORATION ANNUAL REPORT 2010

of the current deposit balance under the JV name thatis allocated to Chiyoda.

In Japan, the objective will be to look beyond
existing fields of pursuit to maximize the Group’s
overseas presence and develop business activities• Cash flow from investment activities

that will lead to orders for various industrial facilities

Net cash from investment activities was ¥2,722 million

and for projects by domestic clients expanding theirin the negative due to ¥1,864 million paid for software,

operations abroad.

etc.
• Cash flow from financing activities

Complete Existing Orders

Net cash from financing activities was ¥2,079 million

The profitability of some LNG projects under construc-in the negative due to ¥1,940 million paid in dividends

tion in Qatar is being squeezed, due mainly to factors

and other factors.

such as a shortage of workers causing costs to exceed

As the result of the factors described above, theinitial estimates. The Group must therefore carefully

account balance for the fiscal year for cash and cash

manage the progress of big projects, not only in Qatar

equivalents was ¥139,790 million, which was a year-

but also in other areas, and reinforce its reputation foron-year increase of ¥4,254 million.

reliability among clients by taking an even stronger
stance on safety and ensuring the steady execution ofI ssues Requiring the Group’s
Attention

construction work.
Cultivate New Business

It is clear that clients with a vision to the future withEfforts will be directed into areas in the environment

regard to growth and development are the key to thesector where the Company boasts a superior tech-Group’s success in securing big projects, irrespec-

nological capability, and the Company will implement

tive of the speed or degree of economic recovery in

an internal business execution structure for non-EPC

various regions.

businesses to underpin new business development.

The profit, targets and strengthening of our operating base growth strategies laid out in the new medium-

Strengthen Group Operations

term management plan—Engineering Excellence,Management plans to attract essential personnel to

Value Creation 2012—were formulated with the chal-

execute projects and run operations at local subsid-

lenges of the current business environment in mind.

iaries throughout the Group network. This will create

To achieve stated targets and successfully executea business and execution structure that is fine-tuned

the strategic blueprint, the Group will emphasize theto each region. The Group will utilize its international

following issues during fiscal 2010, the second year of

specialized capabilities to underpin its cost-competi-Engineering Excellence, Value Creation 2012.

tiveness, along with measures to reinforce and extend
the function of its overseas design subsidiaries.

Secure Orders for New Projects
Group companies will focus their efforts on winning new

Business Risks

orders not only in the areas of LNG- and gas-related
projects but in other industry sectors such as oil and

The primary issues that could affect investor deci-

petrochemicals. Toward this end, measures will be drawn

sions regarding investment risk, such as material

up to reinforce R&D capabilities and cost-competitiveness,issues related to the Chiyoda Group’s financial position,and to retain and train essential personnel.

performance and cash flow, and the Chiyoda Group’s

CHIYODA CORPORATION ANNUAL REPORT 2010 15

response to such issues, include but are not limited

Terrorism, Conflicts and Other Forceto, the issues outlined below. The Chiyoda Group rec-Majeure Events

ognizes the potential occurrence of these risks andForce majeure events such as terrorism, conflicts,

works to avoid them to the maximum extent possible.

and natural disasters, etc., may cause direct losses,

The Chiyoda Group also moves to respond as quickly

delays in procuring or delivering materials and equip-

as possible to minimize the impact of issues if andment, threats to the safety of workers, cessation ofwhen they occur.

construction work or other problems at construction

Chiyoda Group management acknowledges thatsites in Japan and overseas.

the issues outlined below may present risks in the

Whilst a top priority is placed on the avoidance

future and has made them the focus of risk manage-of human injury, the Chiyoda Group has structured

ment.

a threat management system that includes cooperation with customers and other related parties to sup-Changes in Exchange Rates

port rapid initial response should such events occur.

In overseas construction projects, payments made to

In addition, the Chiyoda Group will take other steps

Chiyoda for construction are often in currencies differ-to avoid or minimize these risks, including negotiat-

ent to those made by Chiyoda to subcontractors and/ing contractual provisions that rationally allocate ad-or vendors for equipment and materials. Foreign cur-ditional costs to customers.

rency exchange rates may therefore affect the financial
results of the projects. The Chiyoda Group works to

Plant Accidents

avoid and minimize such foreign currency fluctuation

The possibility exists that a serious incident such as anrisks by using forward foreign exchange contracts andexplosion or fire may occur at plants that the Chiyoda

matching planned outlays in multiple currencies withGroup is constructing or has completed. The Chiyoda

construction payments and receivables.

Group could be adjudged responsible for such accidents, including being held liable for damages, which

Rapid Changes in Economic Trends

could impact the Chiyoda Group’s performance.

Cancellation, delays or revisions of the investment

The Chiyoda Group works to avoid or minimize

plans of customers, or other factors resulting fromthis risk in ways such as taking all possible measureschanges in worldwide economic trends, could impact

to preclude the occurrence of such incidents, includ-

the Chiyoda Group’s performance. In addition, con-ing quality control and safety management. Other

struction execution plans and budgets and collection

countermeasures include maintaining the appropriate

of receivables may be affected by worsening businessinsurance coverage and negotiating contracts thatconditions of business partners involved in plant con-rationally allocate customer responsibility for damages.

struction, including subcontractors and suppliers ofequipment and materials.
The Group will work to avoid or minimize risk by
scrupulously analyzing the credit standing of business
partners, while monitoring economic trends to confirm
whether or not to transact business or under what conditions business should be transacted.

16 CHIYODA CORPORATION ANNUAL REPORT 2010

Chiyoda Corporation andConsolidated Subsidiaries
Consolidated Financial Statements for the Years Ended March 31, 2010 and2009, and Independent Auditors' Report

CHIYODA CORPORATION ANNUAL REPORT 2010 17

Chiyoda Corporation and Consolidated Subsidiaries
INDEPENDENT AUDITORS'REPORT

To the Board of Directors of Chiyoda Corporation:
We have audited the accompanying consolidated balance sheets of Chiyoda Corporation (the "Company") andconsolidated subsidiaries as of March 31, 2010 and 2009, and the related consolidated statements of income,changes in equity, and cash flows for the years then ended, all expressed in Japanese yen. These consolidated
financial statements are the responsibility of the Company's management. Our responsibility is to express an
opinion on these consolidated financial statements based on our audits.
We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting theamounts and disclosures in the financial statements. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, theconsolidated financial position of Chiyoda Corporation and consolidated subsidiaries as of March 31, 2010 and2009, and the consolidated results of their operations and their cash flows for the years then ended in conformity with accounting principles generally accepted in Japan.
Our audits also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our
opinion, such translation has been made in conformity with the basis stated in Note 1. Such U.S. dollar amounts
are presented solely for the convenience of readers outside Japan.

June 11, 201018 CHIYODA CORPORATION ANNUAL REPORT 2010

Chiyoda Corporation and Consolidated Subsidiaries
Consolidated Balance Sheets
March 31, 2010 and 2009
Chiyoda Corporation and Consolidated Subsidiaries
Consolidated Balance Sheets
March 31, 2010 and 2009

Millions of Yen
2010
2009

ASSETS
CURRENT ASSETS:
Cash and cash equivalents (Note 14)
Short-term investments (Note 14)
Notes and accounts receivable—trade (Notes 3 and 14)
Allowance for doubtful accounts
Costs and estimated earnings on long-term construction
contracts (Notes 4 and 14)
Costs of construction contracts in process
Accounts receivable—other (Note 3)
Jointly controlled assets of joint venture (Note 14)
Deferred tax assets (Note 11)
Prepaid expenses and otherTotal current assets
PROPERTY, PLANT AND EQUIPMENT (Note 7):Land
Buildings and structures
Machinery and equipment
Tools, furniture and fixtures
Construction in progress
Total
Accumulated depreciation
Net property, plant and equipment
INVESTMENTS AND OTHER ASSETS:
Investment securities (Notes 5 and 14)
Investments in and advances to unconsolidated
subsidiaries and associated companies (Note 6)
SoftwareDeferred tax assets (Note 11)
Other assets
Allowance for doubtful accounts
Total investments and other assets

TOTAL

Thousands of
U.S. Dollars(Note 1)2010

¥ 139,790
53
39,864(2 )¥ 135,536
52
33,090(3 )$ 1,503,125
577
428,647(29 )

11,454
7,283
4,958
69,917
15,523
1,876

17,56016,920
5,177
100,426
9,872
2,215

123,166
78,31853,321
751,805
166,914
20,172

290,719

320,848

3,126,018

11,93815,193592
5,157
48
32,931(11,480 )

11,953
14,752870
5,010
132,588(10,586 )

128,376
163,370
6,371
55,452525
354,097(123,447 )

21,45022,001

230,649

5,153

3,765

55,417

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

3,203
3,546
1,348
3,435
(333 )

29,192
34,36018,76537,935(3,583 )16,004

14,967

172,087¥ 328,174¥ 357,816$ 3,528,755

See notes to consolidated financial statements.

- 2
CHIYODA CORPORATION ANNUAL REPORT 2010 19

Chiyoda Corporation and Consolidated Subsidiaries
Consolidated Balance Sheets
March 31, 2010 and 2009

Millions of Yen
2010
2009

LIABILITIES AND EQUITYCURRENT LIABILITIES:Current portion of long-term debt (Notes 7, 13 and 14)
Notes and accounts payable—trade (Notes 3 and 14)
Advance receipts on construction contracts
Income taxes payable (Note 14)
Deposits received
Allowance for warranty costs for completed works
Allowance for losses on construction contracts
Accrued expenses and other (Note 3)
Total current liabilities
NON-CURRENT LIABILITIES:Long-term debt (Notes 7, 13 and 14)
Liability for retirement benefits (Note 8)
Provision for treatment of PCB waste
Other liabilities
Total non-current liabilities¥

17
89,52348,168
4,675
4,497
4,486
4,427
10,162¥

28
77,02091,661
5,457
4,468
3,801
4,302
12,478

Thousands of
U.S. Dollars(Note 1)
2010
$

192
962,621517,945
50,27048,362
48,24347,605109,279

165,960

199,218

1,784,519

10,022
2,305
123
510

10,0302,288
361

107,763
24,793
1,322
5,485

12,96012,681

139,364

43,39643,392466,628

37,11270,759102(156 )(1,315 )37,10869,730(775 )(1,368 )(1,469 )399,060
760,860
1,106(1,685 )(14,148 )(1,215 )148,683569(1,105 )145,513404(13,070 )1,598,750
6,120

149,253

145,917

1,604,871¥ 328,174¥ 357,816$ 3,528,755

COMMITMENTS AND CONTINGENT LIABILITIES(Notes 3, 13, 15 and 16)
EQUITY (Notes 9, 10 and 18):
Common stock—authorized, 570,000 thousand shares;
issued, 260,324 thousand shares in 2010 and
260,292 thousand shares in 2009
Preferred stock—authorized, 80,000 thousand shares
Capital surplus
Retained earnings
Unrealized gain (loss) on available-for-sale securities
Deferred loss on derivatives under hedge accounting
Foreign currency translation adjustments
Treasury stock—at cost, 1,117 thousand shares in 2010
and 963 thousand shares in 2009
Total
Minority interests
Total equity
TOTAL

- 2 -

20 CHIYODA CORPORATION ANNUAL REPORT 2010

Chiyoda Corporation and Consolidated Subsidiaries
Consolidated Statements of Income
Years Ended March 31, 2010 and 2009
Chiyoda Corporation and Consolidated Subsidiaries
Consolidated Statements of Income
Years Ended March 31, 2010 and 2009
Thousands of
U.S. Dollars(Note 1)
2010

Millions of Yen
2010
2009
REVENUE (Notes 3 and 4)¥ 312,985¥ 446,438$ 3,365,440

298,766

427,461

3,212,545

14,21918,977

152,895

12,517

11,749134,593

1,702

7,227

18,301

2,017(249 )
144
1,214

5,101
(340 )
137(435 )
127(1,859 )21,695(2,687 )
1,550
13,055COST OF REVENUE (Notes 3 and 4)
Gross profit
SELLING, GENERAL AND ADMINISTRATIVE EXPENSES(Notes 3 and 12)
Operating income
OTHER INCOME (EXPENSES):Interest and dividend income
Interest expense
Equity in earnings of associated companies
Foreign exchange gain (loss)
Reversal of allowance for doubtful accounts
Loss on valuation of investment securities
Provision for treatment of PCB waste
Other—net(123 )
9(306 )(1,322 )102

Other income—net

3,012

2,423

32,393

INCOME BEFORE INCOME TAXES AND MINORITY
INTERESTS

4,714

9,651

50,695

INCOME TAXES (Note 11):
Current
Deferred

8,532(6,806 )

7,120(3,996 )91,751(73,188 )

1,726

3,123

18,562

34

29

370

Total income taxes
MINORITY INTERESTS IN NET INCOMENET
INCOME
ChiyodaCorporation and Consolidated Subsidiaries

¥

2,953

¥

6,498

$

31,762

Consolidated Statements of Income
Years Ended March 31, 2010 and 2009

2010

2009

U.S.
Dollars2010¥ 11.39
11.39
3.50¥ 25.58
25.58
7.50$ 0.12
0.12
0.04

Yen
PER SHARE OF COMMON STOCK (Notes 2.t and 17):
Basic net income
Diluted net income
Cash dividends applicable to the year
See notes to consolidated financial statements.

- 3 -(Continued)
CHIYODA CORPORATION ANNUAL REPORT 2010 21

Chiyoda Corporation and Consolidated Subsidiaries
Consolidated Statements of Changes in Equity
Years Ended March 31, 2010 and 2009

ChiyodaCorporation
and Consolidated
Consolidated
Subsidiaries
hiyodaChiyodaCorporation
Corporation
ChiyodaChiyodaChiyodaCorporation
andCorporation
andConsolidated
Corporation
Consolidated
andandConsolidated
andSubsidiaries
Consolidated
Subsidiaries
Subsidiaries
Subsidiaries
Subsidiaries

Consolidated
Statementsof Equity
ChangesinEquityonsolidated
Consolidated
Consolidated
Consolidated
Statements
Statements
ConsolidatedofStatements
Statements
ChangesofStatements
ChangesinofinChanges
ChangesofEquity
Changesinin Equity
Equityin Equity
Years
Ended
March
31,
2010
and 2009
ears
Years
Ended
Ended
Years
March
Years
March
Years
Ended
31,
Ended
31,
2010
Ended
March
March
2010
and
March
31,
31,
and
2009
2010
2010
31,
20092010
and
and
2009
and 2009
Thousands
Thousands
Thousands
Thousands
Thousands
Thousands

U
OutstandingG
Outstanding
Outstanding
Outstanding
Outstanding
Outstanding
NumberofofofNumberNumberof NumberofNumberNumberof
SharesofofofSharesSharesof SharesofSharesSharesofA
CommonCommonCapitalRetained
CommonCommon Common
CommonCommonCommonCommonCommon
CommonCommonCapitalCapitalCapitalCapitalCapitalRetained
Retained
Retained
Reta
Reta
Stock
Stock
Surplus
Earnings
S
Stock
Stock Stock
Stock
Stock
Stock
Stock Stock
Stock
Stock
Surplus
Surplus
Surplus
Surplus
Surplus
Earnings
Earnings
Earnings
Earn
Earn

BALANCE,APRIL
1, 2008
2008
ALANCE,APRILBALANCE,APRILBALANCE,
1,BALANCE,
2008
1, APRIL
2008
APRIL
APRIL
1,
1,
2008
1, 2008
BALANCE,

192,279
12,935
6,718
65,155
192,279
192,279
192,279¥ 12,935¥ 12,935¥¥ 12,935¥ ¥12,935
12,935¥ 6,718¥ 6,718¥¥ 6,718¥¥ 6,718
6,718¥ 65,155¥ 65,155¥¥ 65,155¥¥ 65
65
192,279192,279

Netincomeincome6,498
NetNetincomeincomeNet
Net
incomeNet
income
6,498
6,498
6,498
66
Issuanceofcommon
stock
to a
third
party
(Note
9)
67,08030,45430,387Issuance
Issuanceof IssuancecommonofIssuancecommonIssuance
stock
of
of
stock
commoncommonof
to commonatothirdstock
stock
a third
stock
party
to
party
ato
third
third
(Note
a third
(Note
party
party
9) party
9)(Note
(Note
(Note
9)
9) 9)
67,08067,080 67,080
67,08067,08030,45430,45430,454
30,45430,45430,38730,38730,38730,38730,387Issuanceofcommon
stock
by
stock
optionplan
Issuance
Issuanceof IssuancecommonofIssuancecommonIssuance
stock
of
of
stock
commoncommonofby commonstock
by stock
stock
stock
optionstockbyoption
stock
by
plan
stock
plan
optionoptionoptionplan
planplan(Notesand10) 10)303030 3 3(Notes(Notes9 and
9 (Notes
and(Notes10)10)(Notes999and
and
9 10)
10)
and
30 30
30
33 3 33 333
33
Cash¥10.00
dividends,¥10.00per shareshare(1,922
CashCashdividends,
dividends,
Cash
Cash
dividends,
Cashdividends,¥10.00dividends,
perpershare¥10.00¥10.00share¥10.00
per
share
per
share
(1,922(1,922)(1,922) (1(1Repurchaseof treasury
treasurystock(60
Repurchase
Repurchaseof
Repurchase
Repurchasetreasuryof Repurchasetreasury
of
of
stock
treasurystockof treasury
stock
stock
stock
(60(60) ) (60
(60
))(60
) )
Net
changein thetheyearyear
NetNetchangechange
in
Net
Net
the
inchangechangeNet
theyearchange
year
in
in
the
in yearyear
the

BALANCE,
MARCH
31, 2009
20092009
ALANCE,MARCHBALANCE,MARCHBALANCE,
31,
BALANCE,
31,
2009
MARCH
MARCH
2009
MARCH
31,
31,
2009
31,
BALANCE,
NetincomeincomeNetNetincomeincomeNet
Net
incomeNet
incomeIssuanceofcommonstockbyoptionplan
Issuance
Issuanceof IssuancecommonofIssuancecommonIssuance
stock
of
of
stock
commoncommonofby commonstock
by stock
stock
stock
optionstockbyoption
stock
stock
by
plan
stock
plan
optionoptionoptionplan
planplan(Notesand10) 10)(Notes(Notes9 and
9 (Notes
and(Notes10)10)(Notes999and
and
9 10)
10)
and
Cash¥7.50
dividends,¥7.50
per share
share
Cash
Cash
dividends,
dividends,
Cash
Cash
dividends,
Cashdividends,¥7.50
dividends,
perper
share
¥7.50
¥7.50
share
¥7.50
per
share
per
share
Changes
in
the
scope
of consolidation
consolidation
Changes
Changesin theinChanges
ChangesthescopeChanges
scope
in
in
ofthe
the
consolidationofin scopescope
theconsolidation
scopeofconsolidationof consolidation
Repurchaseof treasury
treasurystock
Repurchase
Repurchaseof
Repurchase
Repurchasetreasuryof Repurchasetreasury
of
of
stock
treasurystockof treasury
stock
stock
stock
Net
changein thetheyearyear
NetNetchangechange
in
Net
Net
the
inchangechangeNet
theyearchange
year
in
in
the
in yearyear
the

BALANCE,
MARCH
31, 2010
20102010
ALANCE,MARCHBALANCE,MARCHBALANCE,
31,
BALANCE,
31,
2010
MARCH
MARCH
2010
MARCH
31,
31,
2010
31,
BALANCE,259,328
43,392
37,10869,730259,328
259,328
259,328
43,392
43,39243,392
43,392
43,392
37,10837,10837,10837,10837,10869,73069,73069,73069
69
259,328259,328

2,953
2,953
2,953
22
2,953
32 32

323232
32

3

3

33

33

3

(153
) ) )
(153
) ) (153
(153
)(153
(153

3

33

33
(1,944(1,944(1,944)(1,944) (1(120
20 20 20259,20743,396
37,11270,759259,207259,207259,207
259,207259,207¥ 43,396¥ 43,396¥¥ 43,396¥ ¥43,396
43,396¥ 37,112¥ 37,112¥¥ 37,112¥¥ 37,112
37,112¥ 70,759¥ 70,759¥¥ 70,759
¥¥ 70
70

Unre
U
Gain
G

Avai
A
CommonCapitalRetained
CommonCommonCommon
CommonCommonCapitalCapitalCapitalCapitalCapitalRetained
Retained
Retained
Retained
Retainefor
Stock
Surplus
Earnings
Secu
S
Stock
Stock Stock
Stock
Stock
Surplus
Surplus
Surplus
Surplus
Surplus
Earnings
Earnings
Earnings
Earnings
Earning

BALANCE,
MARCH
31, 2009
20092009
ALANCE,MARCHBALANCE,MARCHBALANCE,
31,
BALANCE,
31,
2009
MARCH
MARCH
2009
MARCH
31,
31,
2009
31,
BALANCE,
NetincomeincomeNetNetincomeincomeNet
Net
incomeNet
incomeIssuanceofcommonstockbyoptionplan
Issuance
Issuanceof IssuancecommonofIssuancecommonIssuance
stock
of
of
stock
commoncommonofby commonstock
by stock
stock
stock
optionstockbyoption
stock
stock
by
plan
stock
plan
optionoptionoptionplan
planplan(Notesand10) 10)(Notes(Notes9 and
9 (Notes
and(Notes10)10)(Notes999and
and
9 10)
10)
and
Cash$0.08
dividends,$0.08
per share
share
Cash
Cash
dividends,
dividends,
Cash
Cash
dividends,
Cashdividends,$0.08
dividends,
perper
share
$0.08
$0.08
share
$0.08
per
share
per
share
Changes
in
the
scope
of consolidation
consolidation
Changes
Changesin theinChanges
ChangesthescopeChanges
scope
in
in
ofthe
the
consolidationofin scopescope
theconsolidation
scopeofconsolidationof consolidation
Repurchaseof treasury
treasurystock
Repurchase
Repurchaseof
Repurchase
Repurchasetreasuryof Repurchasetreasury
of
of
stock
treasurystockof treasury
stock
stock
stock
Net
changein thetheyearyear
NetNetchangechange
in
Net
Net
the
inchangechangeNet
theyearchange
year
in
in
the
in yearyear
the

BALANCE,
MARCH
31, 2010
20102010
ALANCE,MARCHBALANCE,MARCHBALANCE,
31,
BALANCE,
31,
2010
MARCH
MARCH
2010
MARCH
31,
31,
2010
31,
BALANCE,466,588
399,020
749,793$ 466,588$ 466,588$$ 466,588$ $466,588
466,588$ 399,020$ 399,020$$ 399,020$$ 399,020
399,020$ 749,793$ 749,793$$ 749,793$ 749,79
749,79$(31,762
31,762
31,762
31,762
31,76
31,76
39 39

39 3939
39

39 39

39 39
39
39
(20,913(20,913(20,913)(20,913)(20,91(20,91))
217 21217217 217
21466,628
399,060
760,860$ 466,628$ 466,628$$ 466,628$ $466,628
466,628$ 399,060$ 399,060$$ 399,060$$ 399,060
399,060$ 760,860$ 760,860$$ 760,860$ 760,86
760,86$See
notes
toconsolidated
consolidated
financialstatements.
eeSee
notes
notes
toSee
See
consolidated
to notes
consolidated
notes
See
notes
to
to
consolidated
financial
to consolidated
financialstatements.
financialfinancialstatements.
financialstatements.
statements.
statements.

- 5- -5 ---55 ---- 55

22 CHIYODA CORPORATION ANNUAL REPORT 2010

Millionsof
Yen
Millions
Millions
MillionsofMillions
Yen
ofof
Yen
Yen
of YenUnrealized
Unrealized
Unrealized
Unrealized
Unrealized
Gain(Loss)
Deferred
Gain
Gain(Loss)
Gain(Loss)
Gain(Loss)(Loss)
DeferredDeferredDeferredDeferredon on Loss
Loss
on onForeign
Foreign
Foreign
Foreign
Foreign
on on on
Loss
on
Loss
onLosson
AvailableDerivatives
Currency
AvailableAvailableAvailableAvailableDerivatives
Derivatives
Derivatives
Derivatives
Currency
Currency
Currency
Currency
Translation
for-Sale
under
Hedge
Treasuryd for-Sale
for-Sale
for-Sale
for-Sale
under
under
under
Hedge
Hedge
under
Hedge
Hedge
Translation
Translation
Translation
Translation
dainedTreasury
Treasury
Treasury
Treasury
Securities
Accounting
Adjustments
sSecurities
Stock
Securities
Securities
Securities
Accounting
Accounting
Accounting
Accounting
Adjustments
Adjustments
Adjustments
AdjustmentsStock
Stock
Stock
Stock
sningsTotalTotal
Total
Total
Total

5 ¥ (847(847) ¥ (1,668)(1,668)(6(1,059)55,155¥ (847)¥¥ (847) ¥ )(847) ¥ (1,668)¥¥(1,668)¥ (1,668)¥ ¥ ¥¥(6 )(6¥ (6) )) (6 )¥ (1,059)¥¥¥(1,059)(1,059)¥ (1,059)¥¥ 81,228
81,22881,22881,228¥ 81,228¥8
86,498

6,498
6,498
6,498
6,498
6,498
60,84160,84160,84160,84160,841

6,498
6,498
6,498
6,498
6,498
60,84160,84160,84160,84160,8416 66
6
6(1,922(1,922(1,922(1,922)(1,922))))(46(46(46) )))(46 )(1,091(1,091(1,091(1,091)(1,091
))
)
)

(6(6
)(6
(6
)))(6 )

6 66 6 6(1,922(1,922(1,922(1,922(1,922))) ) )
(46
(46
(46
(46
)))(46) )(1,097(1,097(1,097(1,097(1,097))) ) )

145,513
145,513
145,513
145,513
145,513

404
404
404
404 404

145,917
145,917
145,917
145,917
145,9172))
21,922)71
71 71 7171

299 299 (1,462(1,462299299299(1,462(1,462) (1,462) )))(46)))(46 )(46(46
)(46

0
(775
)
(1,368(1,469(1,10509,730(775(775) (775) )(775(1,368) (1,368(1,368) )(1,368)))(1,469(1,469
(1,469) (1,469) ))) (1,105(1,105(1,105) (1,105))))

3
32,953

Minority
Minority
Minority
Minority
Minority
Interests
Interests
Interests
Interests
Interests

Total
Total
Total
Total
Total
EquityEquityEquityEquityEquity410¥ 410¥¥¥410410¥ 410

81,638¥ ¥¥ ¥
81,63881,638¥81,638
81,638

2,953
2,953
2,953
2,953
2,953

2,953
2,953
2,953
2,953
2,953

7 77
7
7
(1,944(1,944(1,944(1,944)(1,944
))
)
)
20 20
20 20
)
(109
(109
(109
) )(109
)
)
2,243
2,243
2,243
2,243
2,243

164
164
164
164 164

7 77 7 7(1,944(1,944(1,944(1,944(1,944))) ) )
2020 20
20
20
(109
) ) )
(109
(109
(109
))(109
2,408
2,408
2,408
2,408
2,408

9 ¥ 102102(156) ¥)(1,315)(1,315)(1,215)
148,683
90,759¥ 102¥¥ 102¥ 102¥ ¥(156¥¥(156) (156¥ ) )(156¥ (1,315)¥¥(1,315)¥ (1,315)¥ (1,215)¥¥¥(1,215)(1,215)¥ (1,215)¥ 148,683¥¥ 148,683
148,683¥ 148,683

569
¥ 569
¥¥¥569569¥ 569

149,253¥ ¥¥149,253¥149,253
149,253¥ 149,253

4))41,944)00 20
878 878 1,211
1,211878878878
1,211
1,211
1,211

153 153153153
153

(109
)
(109
(109
) ))(109)(109

Thousandsof
U.S.
Dollars(Note1) 1)
Thousands
Thousands
Thousands
Thousandsof U.S.
of ofU.S.
Dollars
U.S.
ofDollars
U.S.
Dollars(Note
Dollars(Note(Note1) (Note1)1)Unrealized
ealizedUnrealized
Unrealized
Unrealized
Deferred
Gain(Loss)
DeferredDeferredDeferredDeferrednGain(Loss)
Gain(Loss)
Gain(Loss)(Loss)
Foreign
on on Loss
Loss
on onForeign
Foreign
Foreign
Foreign
on on on
Loss
on
Loss
onLosson
AvailableDerivatives
Currency
ilableAvailableAvailableAvailableDerivatives
Derivatives
Derivatives
Derivatives
Currency
Currency
Currency
Currency
for-Sale
under
Hedge
Translation
Treasuryr-Saledfor-Sale
for-Sale
for-Sale
under
under
under
Hedge
Hedge
under
Hedge
Hedge
Translation
Translation
Translation
Translation
Treasury
Treasury
Treasury
Treasury
Securities
Accounting
Adjustments
Stockurities
Securities
Securities
Accounting
Accounting
Accounting
Accounting
Adjustments
Adjustments
Adjustments
AdjustmentsStocks Securities
Stock
Stock
Stock

TotalTotal
Total
Total
Total

Minority
Minority
Minority
Minority
Minority
Interests
Interests
Interests
Interests
Interests

Total
Total
Total
Total
Total
EquityEquityEquityEquityEquity(8,338)(14,712(15,799(11,892
1,564,660
4,346$ $1,569,008
1,569,008(8,338)93$ (8,338)$$(8,338)$ (8,338)$ (14,712$ (14,712$$ (14,712)$ (14,712) )) $ (15,799) $ (15,799$$ (15,799)$ (15,799) )) $ )(11,892$$$(11,892(11,892$)(11,892))) $) 1,564,660$$ 1,564,660
1,564,660$ 1,564,660 $ 4,346$$$4,346
4,346$ 4,346 $ $1,569,008
1,569,008$ 1,569,008

62

13 )
17
9,444
13,026
9,444
9,444
9,444
9,444 13,026
13,026
13,026
13,026

1,650
1,650
1,650
1,650
1,650

(1,178(1,178(1,178(1,178) (1,178))))

31,762
31,762
31,762
31,762
31,762

31,762
31,762
31,762
31,762
31,76279 79
79 79(20,913(20,913(20,913(20,913(20,913) ))))217217217 217(1,178(1,178(1,178(1,178)(1,178))))
24,122
1,773
24,122
24,122
24,122
24,122 1,773
1,773
1,773
1,773

7979 79
79
79(20,913(20,913(20,913(20,913(20,913))) ) )
217
217
217
217217(1,178(1,178(1,178(1,178(1,178))) ) )
25,89625,89625,89625,89625,896

1,106$ (1,685(1,685(14,148(13,070
1,598,750
6,120$ $1,604,871
1,604,871
60
1,106$ 1,106$$ 1,106$ 1,106$ (1,685$ $(1,685)$ )(1,685)) $ (14,148) $ (14,148$$ (14,148)$ (14,148) )) $ )(13,070$$$(13,070(13,070$)(13,070))) $) 1,598,750$$ 1,598,750
1,598,750$ 1,598,750 $ 6,120$$$6,120
6,120$ 6,120 $ $1,604,871
1,604,871$ 1,604,871

5 CHIYODA CORPORATION ANNUAL REPORT 2010 23

Chiyoda Corporation and Consolidated Subsidiaries
Consolidated Statements of Cash Flows
Years Ended March 31, 2010 and 2009

Chiyoda Corporation and Consolidated Subsidiaries
Consolidated Statements of Cash Flows
Years Ended March 31, 2010 and 2009
Thousands of
U.S. Dollars(Note 1)
2010

Millions of Yen
2010
2009
OPERATING ACTIVITIES:
Income before income taxes and minority interests
Adjustments for:
Income taxes paid
Depreciation and amortization
Reversal of allowance for doubtful accounts—net
Provision for warranty costs for completed works
Provision for loss on construction contracts
Provision for (reversal of) retirement benefits—net
Loss on valuation of investment securities
Foreign exchange loss (gain)—net
Equity in earnings of associated companies
Changes in operating assets and liabilities:
Decrease (increase) in trade notes and accounts receivable,
and costs and estimated earnings on long-term
construction contracts
Decrease in costs of construction contracts in process
Decrease in jointly controlled assets of joint venture
Increase in interest and dividend receivable
Increase in trade notes and accounts payable
Decrease in advance receipts on construction contracts
Increase (decrease) in deposits received
Decrease in accounts receivable—other
Decrease in accrued liability of a defined contribution
pension plan
Other—net
Total adjustments¥$

50,695(80,979 )22,143
(67 )
7,297
1,344
4,024

78
(144 )

469
9,692
30,508(694 )
12,031(43,592 )1
656(13,859 )171
92,256(3,753 )2,772(93,209 )(511 )
2,654

5,051
104,216
328,053(7,465 )
129,367(468,731 )
19
7,061

(800 )(9 )3,898(811 )
8,446(679 )(8,604 )(102 )
41,921

8,613

8,971

92,616(539 )
539(535 )(922 )(942 )
51

888
(65 )
(563 )(1,156 )(5,804 )5,804(5,761 )(9,914 )(10,135 )551(388 )
14(215 )
40(4,176 )159(2,722 )(1,072 )(29,276 )Net cash used in investing activities

24 CHIYODA CORPORATION ANNUAL REPORT 2010

9,651
(72 )
1,957
(158 )
1,754
43
(56 )
1,859
(26 )
(137 )INVESTING ACTIVITIES:Payments for time deposits
Proceeds from withdrawal of time deposits
Payments for purchases of investment securities
Purchases of property, plant and equipment
Purchases of intangible assets
Proceeds from collections of long-term loans
Payments for acquisition of shares (ARROW HUMAN RESOURCES
Co., Ltd. for 2010 and IT Engineering Ltd. for 2009) affecting
scope of consolidation, net of cash acquired
Other—net

¥

- 6 -

¥

(7,531 )
2,059
(6 )
678
125
374

Net cash provided by operating activities

FORWARD

4,714

5,890

¥

7,898

842
(1,550 )$63,340(Continued)

Chiyoda Corporation and Consolidated Subsidiaries
Consolidated Statements of Cash Flows
Years Ended March 31, 2010 and 2009

FORWARD¥

Millions of Yen
2010
2009

Thousands of
U.S. Dollars(Note 1)
2010

5,890

$

¥

7,898

63,340FINANCING ACTIVITIES:
Proceeds from long-term debt
Repayments of long-term debt
Proceeds from issuance of common stock
Payments of cash dividends
Payments of cash dividends to minority shareholders
Other—net(18 )7(1,940 )(7 )(121 )

10,000(10,039 )
60,577(1,920 )
(10 )
(59 )

(193 )
79(20,863 )(78 )(1,303 )Net cash (used in) provided by financing
activities(2,079 )58,548(22,358 )FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON
CASH AND CASH EQUIVALENTS

152(999 )

1,640

NET INCREASE IN CASH AND CASH EQUIVALENTS

3,963

65,44742,621

INCREASE IN CASH AND CASH EQUIVALENTS FROMNEWLY CONSOLIDATED SUBSIDIARY290

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEARADDITIONAL INFORMATION:
ARROW HUMAN RESOURCES Co., Ltd. was included in thescope of consolidation for the year ended March 31, 2010,
through the acquisition of shares. The acquisition costand payments for the acquisition were as follows:
Current assets
Investments and other assets
Current liabilities
Long-term liabilities
Net assets acquired
Goodwill
Shares of minor shareholders
Pre-acquisition carrying amount of investment
Cash acquired
Net of cash acquired

3,122

135,536

70,0891,457,381¥ 139,790¥ 135,536$ 1,503,125

¥

719
127
(545 )(139 )
161
599
(6 )
(75 )
(291 )

$

7,734
1,370
(5,870 )(1,496 )
1,738
6,450
(69 )
(807 )(3,135 )

¥

388

$

4,176

See notes to consolidated financial statements.

- 7 -(Concluded)
CHIYODA CORPORATION ANNUAL REPORT 2010 25

Chiyoda Corporation and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
ChiyodaEnded
Corporationand 31,
Consolidated
Subsidiaries
Years
March
2010 and2009
Notes to Consolidated Financial Statements
Years Ended March 31, 2010 and 2009
1. BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements have been prepared in accordance with theprovisions set forth in the Japanese Financial Instruments and Exchange Act and its related
accounting regulations and in conformity with accounting principles generally accepted in Japan("Japanese GAAP"), which are different in certain respects as to application and disclosure
requirements of International Financial Reporting Standards.
In preparing these consolidated financial statements, certain reclassifications andrearrangements have been made to the consolidated financial statements issued domestically inorder to present them in a form which is more familiar to readers outside Japan. In addition,certain reclassifications and rearrangements have been made in the 2009 financial statements inorder for them to conform to classifications and presentations used in 2010.
The consolidated financial statements are stated in Japanese yen, the currency of the country inwhich Chiyoda Corporation (the "Company") is incorporated and principally operates. The
translations of Japanese yen amounts into U.S. dollar amounts are included solely for theconvenience of readers outside Japan and have been made at the rate of ¥93 to $1, theapproximate rate of exchange at March 31, 2010. Such translations should not be construed as
representations that the Japanese yen amounts could be converted into U.S. dollars at that or
any other rate.
Japanese yen figures less than a million yen are rounded down to the nearest million yen, except
for per share data.
U.S. dollar figures less than a thousand U.S. dollars are rounded down to the nearest thousand
U.S. dollars, except for per share data.
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIESa.

Consolidation—The consolidated financial statements for the year ended March 31, 2010
include the accounts of the Company and its 19 significant (17 in 2009) subsidiaries(together, the "Group").
Under the control or influence concept, those companies in which the Company, directly or
indirectly, is able to exercise control over operations are fully consolidated, and thosecompanies over which the Group has the ability to exercise significant influence areaccounted for by the equity method.
Investments in two (three in 2009) 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 to the investmentsin 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 andassociated companies over the fair value of the net assets of the acquired subsidiary at thedate of acquisition is being amortized over a period of 20 years.
All significant intercompany balances and transactions have been eliminated inconsolidation. All material unrealized profit included in assets resulting from transactions
within the Group is eliminated.

b.

Construction Contracts—For the year ended March 31, 2009, revenues on construction contracts
greater than ¥100 million and having a construction duration exceeding one year are
recognized on the percentage-of-completion method based on the ratio of costs incurred tototal estimated costs. Under this method, related costs and estimated earnings in excess ofprogress billings are presented as a current asset.
In December 2007, the Accounting Standards Board of Japan (the "ASBJ") issued ASBJ Statement
No. 15 "Accounting Standard for Construction Contracts" and ASBJ Guidance No. 18 "Guidanceon Accounting Standard for Construction Contracts." Under the previous Japanese GAAP, either
the completed-contract method or the percentage-of-completion method was permitted toaccount for construction contracts. Under this new accounting standard, the construction
revenue and construction costs should be recognized by the percentage-of-completion method,
if the outcome of a construction contract can be estimated reliably. When total construction
revenue, total construction costs and the stage of completion of the contract at the balance
sheet date can be reliably measured, the outcome of a construction contract can be estimatedreliably. If the outcome of a construction contract cannot be reliably estimated, thecompleted-contract method should be applied. When it is probable that the total construction
costs will exceed total construction revenue, an estimated loss on the contract should be
immediately recognized by providing for a loss on construction contracts. This standard isapplicable to construction contracts anddevelopment contracts and effective for- software
8 fiscal years beginning on or after April 1, 2009.
The Group applied the new accounting standard effective April 1, 2009. The effect of thischange was not material.

26 CHIYODA CORPORATION ANNUAL REPORT 2010

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

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

Construction Contracts—For the year ended March 31, 2009, revenues on construction contracts
greater than ¥100 million and having a construction duration exceeding one year are
recognized on the percentage-of-completion method based on the ratio of costs incurred tototal estimated costs. Under this method, related costs and estimated earnings in excess ofprogress billings are presented as a current asset.
In December 2007, the Accounting Standards Board of Japan (the "ASBJ") issued ASBJ Statement
No. 15 "Accounting Standard for Construction Contracts" and ASBJ Guidance No. 18 "Guidanceon Accounting Standard for Construction Contracts." Under the previous Japanese GAAP, either
the completed-contract method or the percentage-of-completion method was permitted toaccount for construction contracts. Under this new accounting standard, the construction
revenue and construction costs should be recognized by the percentage-of-completion method,
if the outcome of a construction contract can be estimated reliably. When total construction
revenue, total construction costs and the stage of completion of the contract at the balance
sheet date can be reliably measured, the outcome of a construction contract can be estimatedreliably. If the outcome of a construction contract cannot be reliably estimated, thecompleted-contract method should be applied. When it is probable that the total construction
costs will exceed total construction revenue, an estimated loss on the contract should be
immediately recognized by providing for a loss on construction contracts. This standard isapplicable to construction contracts and software development contracts and effective forfiscal years beginning on or after April 1, 2009.
The Group applied the new accounting standard effective April 1, 2009. The effect of thischange was not material.
Concerning the construction contracts, the Group applies the accounting methods below:
Unbilled costs on the other contracts, which are accounted for by the completed-contract
method, are stated as costs of construction contracts in process.
Payments received in excess of costs and estimated earnings on the contracts, which areaccounted for by the percentage-of-completion method, and payments received on the othercontracts are presented as current liabilities.
Costs of preparation work for unsuccessful proposals and other projects which are notrealized are charged to income and are included in costs of revenue.

c.

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

d.

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

- 9 CHIYODA CORPORATION ANNUAL REPORT 2010 27

Chiyoda Corporation and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
Years Ended March 31, 2010 and 2009e.

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

f.

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 anevaluation of potential losses in the receivables outstanding.

g.

Property, Plant and Equipment—Property, plant and equipment are stated at cost. Depreciationis computed by the declining-balance method, except for buildings owned by the Company which
are depreciated using the straight-line method, at rates based on the estimated useful livesof the assets. The range of useful lives is from 11 to 57 years for buildings andstructures, from 4 to 17 years for machinery and equipment, and from 2 to 15 years fortools, furniture and fixtures. Equipment held for lease is depreciated by the straight-line
method over the respective lease periods.

h.

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

i.

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

j.

Allowance for Warranty Costs for Completed Work—The allowance for warranty costs forcompleted work is provided based on past rate experience.

k.

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

l.

Provision for Treatment of PCB Waste—Provision for treatment of PCB (Poly ChlorinatedBiphenyl) waste is provided based on estimated costs of the treatment for PCB products andequipment as well as their collection and transportation fees.

m.

Retirement Benefits—Employees of the Company are, under most circumstances, entitled to
payments from the defined contribution pension plan and the defined benefit corporate
pension plan. Employees of certain of the Company's consolidated subsidiaries are, undermost circumstances, entitled to certain lump-sum severance payments and pension payments.
Effective April 1, 2000, the Company and its domestic consolidated subsidiaries adopted a
new accounting standard for employees' retirement benefits and accounted for the liability
for retirement benefits based on the projected benefit obligations and plan assets at thebalance sheet date.
The transitional obligation of ¥5,696 million ($61,251 thousand) is being amortized andcharged to income over 15 years using the straight-line amortization method and presented as
an operating expense in the consolidated statements of income for the years ended March 31,
2010 and 2009.
Retirement benefits to directors, officers and corporate auditors of the Company areprovided at the amount which would be required if all directors, officers and corporate
auditors terminated at March 31, 2009.
Effective June 23, 2009, the Company terminated its unfunded retirement benefit allowance
for all directors, officers and corporate auditors under the resolution of shareholders
meeting and board meeting. The outstanding balance of retirement benefit allowance fordirectors, officers and corporate auditors of the Company was reclassified to non-current
liabilities—other liabilities in the year ended March 31, 2010.

28

Retirement benefits to directors, officers and corporate auditors of the Company's certain
consolidated subsidiaries are provided at the amount which would be required if all
directors,
officers
CHIYODA CORPORATIONANNUAL REPORT2010 and corporate auditors terminated at March 31, 2010 and 2009.
n.

- and
10 development
Research and Development Costs—Researchcosts are charged to income whenfor retirement benefits based on the projected benefit obligations and plan assets at thebalance sheet date.
The transitional obligation of ¥5,696 million ($61,251 thousand) is being amortized andcharged to income over 15 years using the straight-line amortization method and presented as
an operating expense in the consolidated statements of income for the years ended March 31,
2010 and 2009.
Retirement benefits to directors, officers and corporate auditors of the Company areprovided at the amount which would be required if all directors, officers and corporate
auditors terminated at March 31, 2009.
Effective June 23, 2009, the Company terminated its unfunded retirement benefit allowance
for all directors, officers and corporate auditors under the resolution of shareholders
meeting and board meeting. The outstanding balance of retirement benefit allowance fordirectors, officers and corporate auditors of the Company was reclassified to non-current
liabilities—other liabilities in the year ended March 31, 2010.
Retirement benefits to directors, officers and corporate auditors of the Company's certain
consolidated subsidiaries are provided at the amount which would be required if all
directors, officers and corporate auditors terminated at March 31, 2010 and 2009.
n.

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

o.

Leases—In March 2007, the ASBJ issued ASBJ Statement No. 13, "Accounting Standard for Lease
Transactions," which revised the previous accounting standard for lease transactions issuedin June 1993. The revised accounting standard for lease transactions is effective for fiscal
years beginning on or after April 1, 2008 with early adoption permitted for fiscal years
beginning on or after April 1, 2007.
Under the previous accounting standard, finance leases that deem to transfer ownership ofthe leased property to the lessee were to be capitalized. However, other finance leases werepermitted to be accounted for as operating lease transactions if certain "as if capitalized"
information is disclosed in the note to the lessee's financial statements. The revised
accounting standard requires that all finance lease transactions should be capitalized torecognize lease assets and lease obligations in the balance sheet. In addition, the revised
accounting standard permits leases which existed at the transition date and do not transfer
ownership of the leased property to the lessee to be accounted for as operating leasetransactions with certain "as if capitalized information" disclosed in the notes to thelessee's financial statements.
The Group applied the revised accounting standard effective April 1, 2008. In addition, theGroup accounted for leases which existed at the transition date and do not transfer
ownership of the leased property to the lessee as operating lease transactions.
All other leases are accounted for as operating leases.

p.

Income Taxes—The provision for income taxes is computed based on the pretax income includedin the consolidated statements of income. The asset and liability approach is used torecognize deferred tax assets and liabilities for the expected future tax consequences of
temporary differences between the carrying amounts and the tax bases of assets andliabilities. Deferred taxes are measured by applying currently enacted tax laws to thetemporary differences.
The Company files a tax return under the consolidated corporate-tax system which allows
companies to base tax payments on the combined profits or losses of the parent company andits wholly owned domestic subsidiaries.

q.

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 atthe balance sheet date.
The foreign exchange gains and losses from translation are recognized in the income
statement to the extent that they are not hedged by foreign currency forward contracts.

r.

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

s.

Derivatives and Hedging Activities—The Company uses a variety of derivative financial- 11 instruments, including foreign currency forward contracts as a means of hedging exposure toforeign currency risks. The Company does not enter into derivatives for trading or
speculative purposes.
Derivative financial instruments and foreign currency transactions are classified andaccounted for as follows: (a) all derivatives are recognized as either assets or liabilities
and measured at fair value, with gains or losses recognized in the income statement and(b) for derivatives used for hedging purposes, if derivatives qualify for hedge accounting,because of high correlation and effectiveness between the hedging instruments and the hedged
items, gains or losses on derivatives are deferred until maturity of the hedgedtransactions.
The foreign currency forward contracts are utilized to hedge foreign exchange risks. Certain
assets and liabilities on construction contracts denominated in foreign currencies aretranslated at the contracted rates if the forward contracts qualify for hedge accounting.

t.

Per Share Information—Basic net income per share is computed by dividing net income
available to common shareholders by the weighted-average number of common shares outstanding
CHIYODA CORPORATION ANNUAL REPORT 2010 29
for the period, retroactively adjusted for stock splits.
Diluted net income per share reflects the potential dilution that could occur if securities

separate component of equity.
Revenue and expense accounts of consolidated foreign subsidiaries are translated into
Japanese yen at the current exchange rate as of the balance sheet date.
s. Derivatives and Hedging Activities—The Company uses a variety of derivative financial
ChiyodaCorporation
and Consolidated
Subsidiaries
instruments,
including foreign
currency forward contracts
as a means of hedging exposure toforeign currency risks. The Company does not enter into derivatives for trading or
speculative purposes.

Notes toDerivative
Consolidated
Statements
financialFinancial
instruments
and foreign currency transactions are classified andaccounted for as follows: (a) all derivatives are recognized as either assets or liabilities

Years Ended31, 2010
and value,
2009 with gains or losses recognized in the income statement andandMarchmeasured
at fair(b) for derivatives used for hedging purposes, if derivatives qualify for hedge accounting,because of high correlation and effectiveness between the hedging instruments and the hedged
items, gains or losses on derivatives are deferred until maturity of the hedgedtransactions.
The foreign currency forward contracts are utilized to hedge foreign exchange risks. Certain
assets and liabilities on construction contracts denominated in foreign currencies aretranslated at the contracted rates if the forward contracts qualify for hedge accounting.
t.

Per Share Information—Basic net income per share is computed by dividing net income
available to common shareholders by the weighted-average number of common shares outstanding
for the period, retroactively adjusted for stock splits.
Diluted net income per share reflects the potential dilution that could occur if securities
were exercised or converted into common stock. Diluted net income per share of common stock
assumes full conversion of the outstanding convertible notes and bonds at the beginning of
the year (or at the time of issuance) with an applicable adjustment for related interest
expense, net of tax, and full exercise of outstanding warrants.
Cash dividends per share presented in the accompanying consolidated statements of income are
dividends applicable to the respective years including dividends to be paid after the end of
the year.

u.

New Accounting Pronouncements
Business Combinations—In December 2008, the ASBJ issued a revised accounting standard forbusiness combinations, ASBJ Statement No. 21, "Accounting Standard for Business
Combinations." Major accounting changes under the revised accounting standard are as
follows:(1) The current accounting standard for business combinations allows companies to apply thepooling of interests method of accounting when certain specific criteria are met suchthat the business combination is essentially regarded as a uniting-of-interests. The
revised standard requires to account for such business combination by the purchasemethod and the pooling of interests method of accounting is no longer allowed.
(2) The current accounting standard accounts for the research and development costs to be
charged to income as incurred. Under the revised standard, an in-process research anddevelopment (IPR&D) acquired by the business combination is capitalized as an intangible
asset.
(3) The current accounting standard accounts for a bargain purchase gain (negative goodwill)
to be systematically amortized within 20 years. Under the revised standard, the acquirer
recognizes a bargain purchase gain in profit or loss on the acquisition date after
reassessing whether it has correctly identified all of the assets acquired and all of
the liabilities assumed with a review of such procedures used.
This standard is applicable to business combinations undertaken on or after April 1, 2010
with early adoption permitted for fiscal years beginning on or after April 1, 2009.

- 12 to- Foreign Associated Companies for the Equity
Unification of Accounting Policies Applied
Method—The current accounting standard requires to unify accounting policies within the
consolidation group. However, the current guidance allows to apply the equity method for thefinancial statements of its foreign associated company which have been prepared inaccordance with generally accepted accounting principles in their respective jurisdictions
without unification of accounting policies.
In March 2008, the ASBJ issued ASBJ Statement No. 16, "Accounting Standard for Equity Methodof Accounting for Investments." The new standard requires adjustments to be made to conformthe associate's accounting policies for similar transactions and events under similar
circumstances to those of the parent company when the associate's financial statements areused in applying the equity method unless it is impracticable to determine adjustments. In
addition, financial statements prepared by foreign associated companies in accordance witheither International Financial Reporting Standards or the generally accepted accounting
principles in the United States of America tentatively may be used in applying the equity
method if the following items are adjusted so that net income is accounted for in accordancewith Japanese GAAP unless they are not material: (1) amortization of goodwill; (2) scheduled
amortization of actuarial gain or loss of pensions that has been directly recorded in theequity; (3) expensing capitalized development costs of R&D; (4) cancellation of the fairvalue model accounting for property, plant and equipment and investment properties andincorporation of the cost model accounting; (5) recording the prior years' effects ofchanges in accounting policies in the income statement where retrospective adjustments tothe financial statements have been incorporated; and (6) exclusion of minority interestsfrom net income, if contained.

30 CHIYODA CORPORATION ANNUAL REPORT 2010

This standard is applicable to equity method of accounting for fiscal years beginning on orafter April 1, 2010 with early adoption permitted for fiscal years beginning on or after
April 1, 2009.
Asset Retirement Obligations—In March 2008, the ASBJ published a new accounting standard for
asset retirement obligations, ASBJ Statement No. 18 "Accounting Standard for Asset
Retirement Obligations" and ASBJ Guidance No. 21 "Guidance on Accounting Standard for Asset
Retirement Obligations." Under this accounting standard, an asset retirement obligation isdefined as a legal obligation imposed either by law or contract that results from theacquisition, construction, development and the normal operation of a tangible fixed asset
and is associated with the retirement of such tangible fixed asset.
The asset retirement obligation is recognized as the sum of the discounted cash flows
required for the future asset retirement and is recorded in the period in which the
obligation is incurred if a reasonable estimate can be made. If a reasonable estimate of theasset retirement obligation cannot be made in the period the asset retirement obligation isincurred, the liability should be recognized when a reasonable estimate of asset retirement
obligation can be made. Upon initial recognition of a liability for an asset retirement
obligation, an asset retirement cost is capitalized by increasing the carrying amount of therelated fixed asset by the amount of the liability. The asset retirement cost is
subsequently allocated to expense through depreciation over the remaining useful life of theasset. Over time, the liability is accreted to its present value each period. Any subsequent
revisions to the timing or the amount of the original estimate of undiscounted cash flows
are reflected as an increase or a decrease in the carrying amount of the liability and thecapitalized amount of the related asset retirement cost. This standard is effective forfiscal years beginning on or after April 1, 2010 with early adoption permitted for fiscal
years beginning on or before March 31, 2010.
Accounting Changes and Error Corrections—In December 2009, ASBJ issued ASBJ Statement No. 24"Accounting Standard for Accounting Changes and Error Corrections" and ASBJ Guidance No. 24"Guidance on Accounting Standard for Accounting Changes and Error Corrections." Accounting
treatments under this standard and guidance are as follows:(1) Changes in accounting policies
When a new accounting policy is applied with revision of accounting standards, a newpolicy is applied retrospectively unless the revised accounting standards include
specific transitional provisions. When the revised accounting standards include specifictransitional provisions, an entity shall comply with the specific transitional
provisions.
(2) Changes in presentations
When the presentation of financial statements is changed, prior period financial
statements are reclassified in accordance with the new presentation.
(3) Changes in accounting estimates
A change in an accounting estimate is accounted for in the period of the change if thechange affects that period only, and is accounted for prospectively if the change
affects both the period of the change and future periods.
(4) Corrections of prior period errors
When an error in prior period financial statements is discovered, those statements arerestated.

CHIYODA CORPORATION ANNUAL REPORT 2010 31- 14 -

Chiyoda Corporation and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
Years Ended March 31, 2010 and 2009This accounting standard and the guidance are applicable to accounting changes andcorrections of prior period errors which are made from the beginning of the fiscal year thatbegins on or after April 1, 2011.
Segment Information Disclosures—In March 2008, the ASBJ revised ASBJ Statement No. 17"Accounting Standard for Segment Information Disclosures" and issued ASBJ Guidance No. 20"Guidance on Accounting Standard for Segment Information Disclosures." Under the standard
and guidance, an entity is required to report financial and descriptive information about
its reportable segments. Reportable segments are operating segments or aggregations ofoperating segments that meet specified criteria. Operating segments are components of anentity about which separate financial information is available and such information isevaluated regularly by the chief operating decision maker in deciding how to allocate
resources and in assessing performance. Generally, segment information is required to bereported on the same basis as is used internally for evaluating operating segment
performance and deciding how to allocate resources to operating segments. This accounting
standard and the guidance are applicable to segment information disclosures for the fiscal
years beginning on or after April 1, 2010.
3. TRANSACTIONS WITH UNCONSOLIDATED SUBSIDIARIES AND ASSOCIATED COMPANIES
Significant transactions with and balances due from/(to) unconsolidated subsidiaries andassociated companies are summarized as follows:
Millions of Yen
2010
2009

Transactions for the Year Ended March 31
Revenue
Cost of revenue
Selling, general and administrative expenses¥
3(2,288 )(271 )

Thousands of
U.S. Dollars
2010

¥
122
(6,041 )(1,290 )$39(24,606 )(2,915 )Balances at March 31
Notes and accounts receivable—trade
Accounts receivable—otherNotes and accounts payable—trade
Accrued expenses and other

¥

2
2
(84 )
(14 )

¥

23
18
(297 )(106 )$

24
24(913 )(158 )The Company guaranteed the indebtedness of a certain unconsolidated subsidiary in the amount of¥2,586 million ($27,814 thousand) at March 31, 2010.
4. CONSTRUCTION CONTRACTS
Costs and estimated earnings recognized with respect to construction contracts which areaccounted for by the percentage-of-completion method at March 31, 2010 and 2009, were as
follows:
Millions of Yen
2010
2009

Thousands of
U.S. Dollars
2010

Costs and estimated earnings
Amounts billed¥ 563,887(552,432 )¥ 1,191,100(1,173,540 )$ 6,063,304(5,940,137 )

Net

¥

¥

$

32 CHIYODA CORPORATION ANNUAL REPORT 2010- 15 -

11,454

17,560123,166

5. INVESTMENT SECURITIESInvestment securities at March 31, 2010 and 2009, consisted of the following:Thousands of
U.S. Dollars
2010

Millions of Yen
2010
2009
Non-current—Equity securities¥ 5,153¥ 3,765$ 55,417

The costs and aggregate fair values of investment securities at March 31, 2010 and 2009, were as
follows:

March 31, 2010
Securities classified asavailable-for-sale—Equity securities

Cost

Millions of Yen
Unrealized
Unrealized
Gains
LossesFair
Value¥ 3,377

¥ 507

¥ 375

¥ 3,508¥ 3,400

¥ 193

¥ 966

¥ 2,626

March 31, 2009
Securities classified asavailable-for-sale—Equity securities

March 31, 2010
Securities classified asavailable-for-sale—Equity securities

Cost$ 36,316

Thousands of U.S. Dollars
Unrealized
Unrealized
Gains
Losses$ 5,456$ 4,041

Fair
Value$ 37,730

Available-for-sale securities whose fair value was not readily determinable at March 31, 2009,were as follows. The similar information for 2010 is disclosed in Note 14.
Carrying AmountMillions of Yen

March 31, 2009
Available-for-sale—Equity securities¥ 1,138

The information of the available-for-sale securities which were sold during the year ended March
31, 2010 was as follows:
Millions of Yen
Realized
Realized
Proceeds
Gains
LossesMarch 31, 2010
Available-for-sale—Equity securities

¥ 13

¥4

¥ 12

Thousands of U.S. Dollars
Realized
Realized
Proceeds
Gains
LossesMarch 31, 2010
Available-for-sale—Equity securities$ 143- 16 -

$ 44

$ 134

CHIYODA CORPORATION ANNUAL REPORT 2010 33

Chiyoda Corporation and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
Years Ended March 31, 2010 and 2009

6. INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED SUBSIDIARIES AND ASSOCIATED COMPANIESInvestments in and advances to unconsolidated subsidiaries and associated companies at March 31,
2010 and 2009, were as follows:
Millions of Yen
2010
2009

Thousands of
U.S. Dollars
2010

Investments
Long-term receivables¥ 2,70212¥ 3,19013$ 29,053
138

Total

¥ 2,714¥ 3,203$ 29,192

7. LONG-TERM DEBT
Long-term debt at March 31, 2010 and 2009, consisted of the following:
Millions of Yen
2010
2009
Long-term loans from banks, maturing seriallythrough 2012, with interest rates ranging
from 2.4% to 5.7% at 2010 and 2009:
Collateralized
Uncollateralized
Obligations under finance lease
Total
Less current portionLong-term debt, less current portion¥

4
10,00035
10,039(17 )¥ 10,022¥22
10,00037
10,059(28 )¥ 10,030

Thousands of
U.S. Dollars
2010

$

43
107,526386
107,955(192 )$ 107,763

Annual maturities of long-term debt, excluding finance leases (see Note 13), at March 31, 2010,
were as follows:Year Ending
March 31

Millions of Yen
4
10,000Thousands of
U.S. Dollars

2011
2012

¥

$

43
107,526

Total¥ 10,004$ 107,569

Millions of Yen

Thousands of
U.S. Dollars

Commitment-line contracts¥ 15,000$ 161,290

Unused commitments¥ 15,000$ 161,290

Commitment-line contracts at March 31, 2010, were as follows:

34 CHIYODA CORPORATION ANNUAL REPORT 2010- 17 -

The following assets were pledged as collateral for long-term debt at March 31, 2010:
Millions of Yen

Thousands of
U.S. Dollars

Land
Buildings and structures—net of accumulated
depreciation¥ 381$ 4,098

449

4,828

Total

¥ 830

$ 8,927

8. RETIREMENT BENEFITS
Employees of the Company are, under most circumstances, entitled to payments from the defined
contribution pension plan and the defined benefit corporate pension plan upon retirement or
termination.
Employees of certain of the Company's consolidated subsidiaries are, under most circumstances,
entitled to certain lump-sum severance payments and pension payments upon retirement or
termination.
Liability for retirement benefits includes retirement benefits to directors, officers andcorporate auditors in the amount of ¥200 million ($2,158 thousand) and ¥681 million for theyears ended March 31, 2010 and 2009, respectively. The retirement benefits to directors andcorporate auditors are paid subject to the approval of the shareholders.
As discussed in Note 2.m, the Company's outstanding balance of the retirement benefit allowancefor directors, officers and corporate auditors amounted to ¥292 million is reclassified to
non-current liabilities—other liabilities due to the termination effective June 23, 2009.
The liability for employees' retirement benefits at March 31, 2010 and 2009, consisted of thefollowing:
Millions of Yen
2010
2009

Thousands of
U.S. Dollars
2010

Projected benefit obligation
Fair value of plan assets
Unrecognized transitional obligation
Unrecognized actuarial loss
Unrecognized prior service cost
Net accrued pension liabilities
Prepaid pension cost

¥ 26,403(18,886 )(3,044 )(3,395 )
1,028
2,105

¥ 26,682(17,827 )(3,661 )(5,287 )
1,204
1,110
496

$ 283,909(203,082 )(32,733 )(36,514 )
11,055
22,634

Liability for employees' retirement benefits

¥

¥

$

2,105

1,606

22,634CHIYODA CORPORATION ANNUAL REPORT 2010 35- 18 -

Chiyoda Corporation and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
Years Ended March 31, 2010 and 2009

The components of net periodic benefit costs for the years ended March 31, 2010 and 2009, wereas follows:
Millions of Yen
2010
2009

Thousands of
U.S. Dollars
2010

Service cost
Interest cost
Expected return on plan assets
Amortization of transitional obligation
Recognized actuarial loss
Amortization of prior service cost
Subtotal
Payment to defined contribution pension trust

¥

736
369
(265 )
608
845(176 )
2,119
246¥ 1,027381(303 )
610
610(176 )
2,149
237

$

7,923
3,975
(2,854 )
6,546
9,091
(1,895 )22,786
2,646

Net periodic benefit costs¥ 2,365¥ 2,387$ 25,433

Assumptions used for the years ended March 31, 2010 and 2009, 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
Amortization period of prior service cost

2010

2009

1.5%
1.6%
10
years
15
years
10
years

1.5%
1.6%
10
years
15
years
10
years

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

Dividends
Under the Companies Act, companies can pay dividends at any time during the fiscal year in
addition to the year-end dividend upon resolution at the shareholders meeting. For companies
that meet certain criteria such as; (1) having the Board of Directors, (2) having
independent auditors, (3) having the Board of Corporate Auditors, and (4) the term ofservice of the directors is prescribed as one year rather than two years of normal term by
its articles of incorporation, the Board of Directors may declare dividends (except for
dividends in kind) at any time during the fiscal year if the company has prescribed so in
its articles of incorporation. However, the Company cannot do so because it does not meet
all the above criteria.
The Companies Act permits companies to distribute dividends-in-kind (non-cash assets) toshareholders subject to a certain limitation and additional requirements.
Semiannual interim dividends may also be paid once a year upon resolution by the Board of
Directors if the articles of incorporation of the company so stipulate. The Companies Act
provides certain limitations on the amounts available for dividends or the purchase oftreasury stock. The limitation is defined as the amount available for distribution to theshareholders, but the amount of net assets after dividends must be maintained at no lessthan ¥3 million.

36 CHIYODA CORPORATION ANNUAL REPORT 2010- 19 -

b.

Increases/Decreases and Transfer of Common Stock, Reserve and Surplus
The Companies Act requires that an amount equal to 10% of dividends must be appropriated asa legal reserve (a component of retained earnings) or as additional paid-in capital (acomponent of capital surplus) depending on the equity account charged upon the payment ofsuch dividends until the total of aggregate amount of legal reserve and additional paid-in
capital equals 25% of the common stock. Under the Companies Act, the total amount ofadditional paid-in capital and legal reserve may be reversed without limitation. The
Companies Act also provides that common stock, legal reserve, additional paid-in capital,
other capital surplus and retained earnings can be transferred among the accounts undercertain conditions upon resolution of the shareholders.

c.

Treasury Stock and Treasury Stock Acquisition Rights
The Companies Act also provides for companies to purchase treasury stock and dispose of suchtreasury stock by resolution of the Board of Directors. The amount of treasury stock
purchased cannot exceed the amount available for distribution to the shareholders which isdetermined by specific formula.
Under the Companies Act, stock acquisition rights are presented as a separate component ofequity.
The Companies Act also provides that companies can purchase both treasury stock acquisitionrights and treasury stock. Such treasury stock acquisition rights are presented as aseparate component of equity or deducted directly from stock acquisition rights.

d.

Issuance of New Ordinary Shares to a Third Party
On April 30, 2008, the Company issued new ordinary shares to a third party based on the
resolution of the Board of Directors meeting held on March 31, 2008. Details are as follows:
(1)
(2)
(3)
(4)

Allocated third party:
Mitsubishi Corporation
Number of shares issued: Ordinary shares, 67,080 thousand shares
Issue price:¥907 per share
Aggregate issue amount: ¥60,841 million

The Company's common stock and capital surplus were increased by ¥30,454 million and¥30,387 million, respectively.
10.

STOCK OPTIONSThe stock options outstanding as of March 31, 2010 were as follows:
Stock
OptionPersons
GrantedNumber of
Options Granted

2002 Stock
Option8 directors
8 officers
623 employees

7,896,000 shares

Date of
Grant
July 12,
2002

Exercise
Price

Exercise
Period¥232( $2.49 )From July 1, 2004
to June 30, 2009- 20 CHIYODA CORPORATION ANNUAL REPORT 2010 37

Chiyoda Corporation and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
Years Ended March 31, 2010 and 2009

The stock option activity was as follows:
2002 Stock Option(Shares)Year Ended March 31, 2009
VestedMarch 31, 2008—Outstanding
Exercised
March 31, 2009—Outstanding

66,000(30,000)
36,000Year Ended March 31, 2010
VestedMarch 31, 2009—Outstanding
Exercised
Lapse
March 31, 2010—Outstanding

36,000(32,000)(4,000)Exercise price
Average stock price at exercise
Fair value price at grant date
11.

¥232
¥768

INCOME TAXESThe Company and its domestic subsidiaries are subject to Japanese national and local income
taxes which, in the aggregate, resulted in a normal effective statutory tax rate of
approximately 41% for the years ended March 31, 2010 and 2009.
The tax effects of significant temporary differences and tax loss carryforwards which resulted
in deferred tax assets and liabilities at March 31, 2010 and 2009, are as follows:
Thousands ofMillions of Yen
U.S. Dollars
2010
2009
2010
Deferred tax assets:
Cost of revenue¥ 13,528¥ 5,600$ 145,469
Allowance for employees' bonus
1,246
1,367
13,399Allowance for warranty costs for completed works
1,715
1,422
18,449Allowance for losses on construction contracts
1,780
1,661
19,149Deferred loss on derivatives under hedge accounting
1,033
Retirement benefits
836
8,993
Other
2,966
4,714
31,893
Less valuation allowance(874 )(1,278 )(9,404 )Total

21,19914,521

227,948

Deferred tax liabilities:
Profit/loss in joint venture
Other

3,785
145

2,992
316

40,704
1,565

Total

3,931

3,309

42,269¥ 17,268¥ 11,212$ 185,679

Net deferred tax assets

38 CHIYODA CORPORATION ANNUAL REPORT 2010- 21 -

Net deferred tax assets as of March 31, 2010 and 2009 were recorded in the accompanying
consolidated balance sheets as follows:
Millions of Yen
2010
2009
Deferred tax assets—current assets
Deferred tax assets—investments and other assets¥ 15,523
1,745¥ 9,872
1,348

Thousands of
U.S. Dollars
2010$ 166,914
18,765

A reconciliation between the normal effective statutory tax rate and the actual effective tax
rate reflected in the accompanying consolidated statements of income for the years ended March
31, 2010 and 2009, is as follows:

12.

2010

2009

Normal effective statutory tax rate
Expenses not deductible for income tax purposes
Non-taxable dividend income
Inhabitant taxes per capita levy
Tax credit
Temporary difference on change in tax act
Increase in valuation allowance for deferred tax assets
Equity in earnings of associated companies
Lower income tax rates applicable to subsidiaries
Lower tax basis of enterprise tax

41 %
4
(8)
1
13

41 %
2
(1)

(1)
(6)
(7)

(2)
(5)
3
(1)
(4)
(1)

Actual effective tax rate

37 %

32 %

RESEARCH AND DEVELOPMENT COSTS
Research and development costs charged to income were ¥1,741 million ($18,726 thousand) and¥1,797 million for the years ended March 31, 2010 and 2009, respectively.

13.

LEASESThe Group leases certain machinery, computer equipment and other assets.
Obligations under finance leases and future minimum payments under noncancelable operatingleases were as follows:
Millions of Yen
2010
Finance Leases
On
Off
Operating
Balance
Balance
LeasesDue within one year
Due after one year

¥ 13
22

¥

90
117

Total

¥ 35

¥ 207

¥

Thousands of U.S. Dollars
2010
Finance Leases
On
Off
Operating
Balance
Balance
Leases

132
1,424

$ 149
236

$

973
1,260

¥ 1,554$ 386$ 2,233$

1,424
15,286$ 16,711

CHIYODA CORPORATION ANNUAL REPORT 2010 39- 22 -

Chiyoda Corporation and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
Years Ended March 31, 2010 and 2009

Pro forma Information of Leased Property Whose Lease Inception Was before March 31, 2008
ASBJ Statement No. 13, "Accounting Standard for Lease Transactions" requires that all financelease transactions should be capitalized to recognize lease assets and lease obligations in thebalance sheet. However, the ASBJ Statement No. 13 permits leases without ownership transfer ofthe leased property to the lessee whose lease inception was before March 31, 2008 to beaccounted for as operating lease transactions if certain "as if capitalized" information isdisclosed in the note to the financial statements. The Company applied the ASBJ Statement No. 13
effective April 1, 2008 and accounted for such leases as operating lease transactions. Pro forma
information of leased property whose lease inception was before March 31, 2008 such as
acquisition cost, accumulated depreciation, obligations under finance leases, depreciation
expense, interest expense and other information of finance leases that do not transfer ownershipof the leased property to the lessee on an "as if capitalized" basis was as follows:Year Ended March 31, 2010
Buildings
andStructures

Millions of Yen
Tools,
Furnitureand Fixtures
Other

Total

Acquisition cost
Accumulated depreciation

¥ 67
19

¥ 388
254

¥ 77
51

¥ 533
325

Net leased property

¥ 48

¥ 134

¥ 25

¥ 207

Buildings
andStructures

Thousands of U.S. Dollars
Tools,
Furniture
Otherand Fixtures

Total

Acquisition cost
Accumulated depreciation

$ 726
205

$ 4,182
2,741

$ 828
555

$ 5,736
3,503

Net leased property$ 520$ 1,440$ 272$ 2,233

Obligations under finance leases:
Millions of Yen
Due within one year
Due after one year

¥

Total

¥ 207

40 CHIYODA CORPORATION ANNUAL REPORT 2010- 23 -

90
117

Thousands of
U.S. Dollars
$

973
1,260

$ 2,233

Year Ended March 31, 2009
Buildings
andStructures

Millions of Yen
Tools,
Furniture
Otherand Fixtures

Total

Acquisition cost
Accumulated depreciation

¥ 67
12

¥ 475
244

¥ 77
43

¥ 619
299

Net leased property

¥ 55

¥ 230

¥ 33

¥ 319

Obligations under finance leases:
Millions of Yen
Due within one year
Due after one year

¥ 110
209

Total

¥ 319

Depreciation expense as lessee, which is not reflected in the accompanying consolidated
statements of income, computed by the straight-line method was ¥111 million ($1,193 thousand)and ¥138 million for the years ended March 31, 2010 and 2009, respectively.
The amounts of obligations, acquisition cost and depreciation under finance leases include theimputed interest income portion and interest expense portion, respectively.
The minimum rental commitments under noncancelable operating leases at March 31, 2009 were as
follows:
Year Ended March 31, 2009
Millions of Yen

14.

Due within one year
Due after one year

¥

144
1,545

Total

¥ 1,690

FINANCIAL INSTRUMENTS AND RELATED DISCLOSURESOn March 10, 2008, the ASBJ revised ASBJ Statement No. 10 "Accounting Standard for Financial
Instruments" and issued ASBJ Guidance No. 19 "Guidance on Accounting Standard for Financial
Instruments and Related Disclosures." This accounting standard and the guidance are applicableto financial instruments and related disclosures at the end of the fiscal years ending on orafter March 31, 2010 with early adoption permitted from the beginning of the fiscal years ending
before March 31, 2010. The Group applied the revised accounting standard and the new guidance
effective March 31, 2010.

CHIYODA CORPORATION ANNUAL REPORT 2010 41- 24 -

Chiyoda Corporation and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
Years Ended March 31, 2010 and 2009

(1) Group Policy for Financial Instruments
The Group uses financial instruments for cash surpluses, if any, invested in low risk
financial assets such as certificate of deposits and deposits at call. For operating
capital, the Group uses bank loans. Derivatives are used, not for speculative purposes, but
to manage exposure to the market risk of fluctuation in foreign currency exchange rates.
(2) Nature and Extent of Risks Arising from Financial Instruments
Receivables such as trade notes and trade accounts are exposed to customer credit risk.
Although receivables in foreign currencies are exposed to the market risk of fluctuation inforeign currency exchange rates, the position, net of payables in foreign currencies, ishedged by using foreign currency forward contracts.
Cash equivalents include certificate of deposits which mature shortly and are used for cash
surpluses. Short-term investments include deposits at call which will mature after threemonth of the date of acquisition. Both certificate of deposits and deposits at call are
exposed to default risk of its issuing financial institution.
Investment securities are equity securities related to the business which the Group
operates. Marketable securities are exposed to the risk of fluctuations in stock prices.
Payment terms of payables, such as trade notes and trade accounts, are mostly less than one
year. Although payables in foreign currencies are exposed to the market risk of fluctuation
in foreign currency exchange rates, those risks are netted against the balance ofreceivables denominated in the same foreign currency as noted above.
Bank loans are used for operating capital, and are exposed to the market risks from changes
in interest rates.
Derivatives are foreign currency forward contracts, which are entered to manage exposure tomarket risks from changes in foreign currency exchange rates of receivables and payables.
Please see Notes 2.s and 15 for more detail about derivatives.
(3) Risk Management for Financial Instruments
Credit risk management
Credit risk is the risk of economic loss arising from a counterparty's failure to repay orservice debt according to the contractual terms. The Group manages its credit risk fromreceivables on the basis of internal guidelines, which include monitoring of payment term
and balances of major customers to identify the default risk of customers in early stage.
Certificate of deposits and deposits at call are exposed to insignificant default risk
because transactions are limited to major financial institutions.
With respect to foreign currency forward contract, the Group limits the counterparty tothose derivatives to major financial institutions for losses arising from credit risk.

42 CHIYODA CORPORATION ANNUAL REPORT 2010- 25 -

Market risk management (foreign exchange risk)
Foreign currency trade receivables and payables are exposed to market risk resulting fromfluctuations in foreign currency exchange rates. Such foreign exchange risk is hedged
principally with foreign currency forward contracts.
Foreign currency forward contracts are controlled under internal guidelines. The position
related to particular construction contracts is identified and is reviewed monthly.
Reconciliation of the transaction and balances with customers' confirmation reply is made,and the transaction to deal and cancel of foreign currency forward contracts are executedand accounted for under internal guidelines.
Marketable investment securities are managed by monitoring market values and financial
position of issuers on a regular basis. The Group assesses the stock price risk
quantitatively so as to account for significant declines in stock market as impairment
losses.
Liquidity risk management
Liquidity risk comprises the risk that the Group cannot meet its contractual obligations infull on maturity dates. The Group manages its liquidity risk by holding adequate volumes ofliquid assets along with timely adequate financial planning.
(4) Fair Values of Financial Instruments
Fair values of financial instruments are based on quoted price in active markets. If quoted
price is not available, other rational valuation techniques are used instead. Also please
see Note 15 for the detail of fair value for derivatives.
(a) Fair values of financial instruments
Millions of Yen
Carrying
AmountFair Value

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

11,454
69,917
3,508

11,454
69,917
3,508

Total

¥ 264,589¥ 264,589

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

¥

¥

Total

¥ 104,202

March 31, 2010

- 26 -

89,523
4,675
10,004

Unrealized
Gain (Loss)

89,523
4,675
10,004¥ 104,202

CHIYODA CORPORATION ANNUAL REPORT 2010 43

Chiyoda Corporation and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
Years Ended March 31, 2010 and 2009

Carrying
AmountMarch 31, 2010

Thousands of U.S. Dollars
Unrealized
Fair Value
Gain (Loss)

Cash and cash equivalents$ 1,503,125
Short-term investments
577
Notes and accounts receivable
428,647
Costs and estimated earnings onlong-term construction contracts
123,166
Jointly controlled assets of joint venture
751,805
Investment securities
37,730$ 1,503,125
577
428,647

Total$ 2,845,053$ 2,845,053

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

$

$

Total

$ 1,120,461

962,62150,270107,569

123,166
751,805
37,730962,62150,270107,569$ 1,120,461

Cash and Cash Equivalents, Short-Term Investments, Notes and Accounts Receivable, andCosts and Estimated Earnings on Long-Term Construction Contracts
The carrying values of accounts mentioned above approximate fair value because of theirshort maturities.
Jointly Controlled Assets of Joint Venture
The jointly controlled assets of joint venture are jointly controlled cash recognizedbased on the Company's share on the venture. The carrying values of jointly controlled
assets of joint venture are approximate fair value because of their short maturities.
Investment Securities
The fair values of investment securities are measured at the quoted market price of thestock exchange for the equity instruments. The information of the fair value forinvestment securities by classification is included in Note 5.
Above schedules do not include investment securities whose fair value cannot be reliably
determined.
Notes and Accounts Payable—Trade and Income Taxes Payable
The carrying values of accounts mentioned above approximate fair value because of theirshort maturities.
Long-Term Debt (Bank Loans)
The carrying amounts of long-term bank loans approximate fair value, because terms are
based on floating rate and the Group's credit standing is deemed not to be changed since
it has borrowed.
Above schedules include current portion of long-term bank loans, excluding obligations
under finance lease.

44 CHIYODA CORPORATION ANNUAL REPORT 2010

- 27 -

Derivatives
The information of the fair value for derivatives is included in Note 15.
(b) Financial instruments whose fair values cannot be reliably determined
Carrying AmountThousands ofMillions of Yen
U.S. Dollars

March 31, 2010
Investment securities that do not have a quoted
market price in an active market
Investments in equity instruments that do not havea quoted market price in an active market
Investments in unconsolidated subsidiaries andassociated companies that do not have a quoted
market price in an active market¥ 1,641$ 17,654

2

31

2,702

29,053(c) Maturity analysis for financial assets and securities with contractual maturities
Due in1 Yearor
Less

March 31, 2010
Cash and cash equivalents
Short-term investments
Notes and accounts receivable, andcosts and estimated earnings onlong-term construction contacts
Jointly controlled assets of joint
venture¥ 139,790
53

Total

¥ 260,692

March 31, 2010

Due in1 YearorLess

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

¥ 341

¥ 45

¥ 341

¥ 45

Due after
10 Years

69,917

Cash and cash equivalents
Short-term investments
Notes and accounts receivable, andcosts and estimated earnings onlong-term construction contacts
Jointly controlled assets of joint
venture$ 1,503,125
577

Total

$ 2,803,166

547,657

Thousands of U.S. Dollars
Due after
Due after
1 Year
5 Years
throughthroughDue after
5 Years
10 Years
10 Years$ 3,667$ 489$ 3,668$ 489

751,805- 28 CHIYODA CORPORATION ANNUAL REPORT 2010 45

Chiyoda Corporation and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
Years Ended March 31, 2010 and 2009

Please see Note 7 for annual maturities of long-term debt and Note 13 for obligations
under finance leases, respectively.
15.

DERIVATIVES
As noted in Note 14, the Group applied ASBJ Statement No. 10 "Accounting Standard for Financial
Instruments" and ASBJ Guidance No. 19 "Guidance on Accounting Standard for Financial Instruments
and Related Disclosures." The accounting standard and the guidance are applicable to financial
instruments and related disclosures at the end of the fiscal years ending on or after March 31,
2010; therefore, the required information is disclosed only for 2010.
Derivative Transactions to Which Hedge Accounting Is Not Applied at March 31, 2010
Millions of Yen
Contract
Fair
AmountDue after
Value
One Year(Loss)March 31, 2010

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

¥ (74 )(1 )

¥ (74 )
(1 )

Total

¥ 29,876¥ (77 )¥ (77 )

Unrealized
Gain (Loss)

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

March 31, 2010

Contract
AmountForeign currency forward contracts:
Selling U.S.$/buying yen
Selling Euro/buying yen
Selling GBP/buying yen
Buying U.S.$/selling yen
Buying Euro/selling yen$ 266,179
24,0502,997
27,95373$ (804 )
(14 )
(1 )
(6 )
(3 )

$ (804 )
(14 )
(1 )
(6 )
(3 )

Total

$ 321,254$ (831 )$ (831 )46 CHIYODA CORPORATION ANNUAL REPORT 2010- 29 -

Derivative Transactions to Which Hedge Accounting Is Applied at March 31, 2010

March 31, 2010

Hedged Item

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

Foreigncurrency
forecasted
transaction

Millions of Yen
Contract
AmountFairContract
Value
Due after
AmountOne Year(Loss)

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

Receivables¥ 11,833
1,016
4,540
1,553
114
2,934

¥ 3,361

2,292¥ (216 )
29
150
(61 )
(8 )
(161 )¥ 21,993¥ 5,893¥ (268 )

¥

76
440
424
4

¥

945

Payables

Total

March 31, 2010

Hedged Item

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

Foreigncurrency
forecasted
transaction

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

Receivables

Thousands of U.S. Dollars
Contract
AmountFair
Due after
Contract
Value
One YearAmount(Loss)$ 127,246
10,92848,825
16,703
1,229
31,555$ 36,141

24,645$ (2,325 )
317
1,615
(665 )(92 )(1,740 )$ 236,487$ 63,369$ (2,890 )

$

819
4,740
4,563
46

$

10,170

Payables

Total

240

2,581

CHIYODA CORPORATION ANNUAL REPORT 2010 47- 30 -

Chiyoda Corporation and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
Years Ended March 31, 2010 and 2009

* Foreign currency forward contracts, which are applied to the foreign currency translation at
the contract rate of the assets and liabilities on construction contracts denominated inforeign currencies
Derivative Transactions to Which Hedge Accounting Is Not Applied at March 31, 2009
Contract
AmountMarch 31, 2009
Buying:Euro
GBP
Selling:
U.S.$
Euro

¥

Millions of Yen
Fair
Unrealized
Value
Loss

19
21
14,990
1,331

¥

18
14

¥ (6 )

15,022
1,332

(31 )
(1 )

The fair value of derivative transactions is measured at the quoted price obtained from thefinancial institution.
The fair value of derivatives accounted for by matching method are included in note and accountreceivables/payables because they are accounted together with their hedged items.
The contract or notional amounts of derivatives which are shown in the above table do not
represent the amounts exchanged by the parties and do not measure the Group's exposure to credit
or market risk.
16.

CONTINGENT LIABILITIESAt March 31, 2010, the Group had the following contingent liabilities:
Millions of Yen
Guarantees on employees' housing loans
Performance bond for an unconsolidated subsidiary

17.

¥

405
2,586

Thousands of
U.S. Dollars$

4,362
27,814NET INCOME PER SHARE
Reconciliation of the differences between basic and diluted net income per share ("EPS") for theyears ended March 31, 2010 and 2009 is as follows:
Millionsof YenNet
IncomeYear Ended March 31, 2010

Thousandsof Shares
WeightedAverage
SharesYen

U.S.
Dollars
EPS

Basic EPS—Net income available tocommon shareholders
Effect of dilutive securities—Stock options¥ 2,953259,3014¥ 11.39$ 0.12

Diluted EPS—Net income for computation¥ 2,953259,306¥ 11.39$ 0.1248 CHIYODA CORPORATION ANNUAL REPORT 2010
- 31 -

Millions Millions ThousandsThousandsof Yenof Yen of Sharesof Shares
Yen
YenMillions
Thou
Weighted-Average
Weighted-Average
ofEPS
Yen
of S
Year Ended
Year
March
Ended
31,March2009 31, 2009
Net Income
Net Income Shares
SharesEPS
WeighteMillions
Thousands
Millions
Thousands
Millions
Thousands
Year toEnded
March31, 2009
Net
IncomeBasic
EPS—NetBasic income
EPS—Netavailable
income available
to common
commonshareholders
¥of
6,498
254,000¥ 25.58¥ 25.58 Sh
Yen ¥ 6,498 of
Sharesof 254,000
Yen
Yenof Sharesof Yenof Shares
Yenshareholders
Thou
Effect ofEffectdilutiveof dilutive
securities—Stocksecurities—Stock
options options
42
42 Millions
Weighted-Average
Weighted-Average
Weighted-Average
Basic 31,
EPS—Net¥of6,498
Yen Shares
of254
S
Millions
Year
Ended MarchThousands
31,
2009Year Ended March2009 income available to
Netcommon
Incomeshareholders
SharesNet Income
EPS
Net
IncomeSharesEPS
Effectofdilutivesecurities—Stock
optionsof
Yenof
SharesYen
WeighteDiluted EPS—Net
Diluted income
EPS—Netfor
incomecomputation
for computation
¥
6,498
¥
6,498
254,043
254,043
¥
25.58
¥
25.58
Millions
Thousands
Millions
Thou
Millions
Millions
Millions
Millions
Thousands
Thousands
Millions
Thousands
Millions
Thousands
Thousands
Thousands
Year
Ended
March
31,to2009
Net¥March
IncomeWeighted-Average
Year
Ended
31, 2009 ofShS
Basic
EPS—Netincomeavailable
Basic EPS—Net
to commonshareholders
available
commonshareholders¥ 6,498
254,000¥ 6,498
254,000
Yen
SharesYen¥ 6,498
254,000¥income25.58
of 25.58
YenYenofof
YenYen
of
Yenof
of
ofYen
of
SharesofSharesof
Yen
SharesofofYenof
SharesYenof YenSharesof
YenShares
Yen
Yen
Net
IncomeSharesEPS
DilutedEPS—Netincomeforcomputation
¥
6,498
254
Weighted-Average
EVENT
Effect of dilutive securities—Stock
Effectof dilutive
options
securities—Stock
options
42
42Weighte
42
Weighted-Average
Weighted-Average
Weighted-Average
Weighted-Average
Weighted-Average
Weighted-Average
Basic EPS—Net incomeNet
available
to commonshareholders¥ 6,498
254
Basic
EPS—Netincome available
d
March
31,
2009
IncomeSharesEPS
Year Ended
March
2009
Sh
ch
,
ded
ear
009
2009
31,
March
Ended
Year
2009
31,
March
Ended
2009
31,
March
2009
31, 2009
NetNetIncomeIncomeNet31,
IncomeNet
IncomeSharesNet
SharesIncomeSharesNet Income
SharesEPS
SharesEPS EPS
SharesEPS NetEPS Income
EPS¥ Diluted
6,498 of18.
254,000¥Effect
25.58
SUBSEQUENTEVENTof 31,
dilutivesecurities—Stock
options
Effectof meeting
dilutivesecurities—ng
riationappropriation
retainedofincome
retainedearnings
earnings
at
March
at
31,
March
2010,
is
scheduledis scheduled
for approvalforapproval
at the Company's
at theCompany's
shareholders
shareholdersonmeetingJune 24,
on J2
Dilutedforcomputation
EPS—Netincomefor2010,computation¥ 6,498
254,043¥ 6,498¥ 25.58
254,043¥ 6,498 EPS—Net
254,043¥ 25.58
42—Net
incomeavailable
toto
common¥6,498
254,000¥ 25.58
Basic
EPS—Netincomeavailable
to 254,000
commonshareholders¥ 6,498254
incomee
PS—Netasic
vailableavailable
EPS—NetBasicavailable
incometo EPS—Net
tocommonincomeavailable
commonto shareholders
commonincomeavailable
shareholders
shareholders
available
commontoshareholders
commonshareholders
tocommonshareholders¥ shareholders
6,498¥ 6,498¥ 6,498¥ 6,498
254,000
254,000¥ 6,498¥ 6,498
254,000¥ 25.58¥254,000
25.58¥ 25.58
254,000¥ 25.58¥ 25.58¥ 25.58
The following
appropriation
ofEPS—Net
retainedearnings
at March 31, 2010,is scheduledDiluted
for
approval
the Company's
Dilutedincomefor computation¥ 6,498
254
Thousands
Thousands
ofatincome
offor com
EPS—Netdilutivesecurities—Stock
options
42
8.
SUBSEQUENT
EVENT
Effectofdilutivesecurities—Stock
options
tive
securities—Stockof
ffecturities—Stock
dilutivesecurities—Stock
Effectof dilutive
securities—Stockofoptionsdilutive
options
securities—Stock
options
securities—Stock
options
optionsoptions
42 42
42Millions
42 Millions
42
42Yen
of
Yen
of
U.S.
Dollars
U.S.
Dollars¥ 6,498
254,043¥ 25.58
SUBSEQUENT
EVENT
18.254,043
SUBSEQUENT
EVENT
priationThefollowingof18.
retained
appropriation
earnings
atof
Marchretained
31, 2010,
earnings
scheduled
at
March
31,
for
2010,
approvalis¥scheduled
at254,043
theforshareholders
at themeetingonshareholde
June 24,
PS—Netincomeforcomputation¥
6,498¥ 25.58
pprovalattheCompany's
meeting
on
June
24,
2010:
DilutedEPS—Netforcomputation¥Company's
6,498
tome
ilutedEPS—Netforincomeforcomputation
DilutedEPS—Netcomputation
forincomecomputation
EPS—Netincomeforcomputation
incomefor shareholders
computationforcomputation¥share
6,498
¥is
6,498
¥income
6,498
254,043
254,043¥ 6,498
6,498
254,043¥ Company's¥907
254,043
25.58¥approval
25.58
25.58
¥$25.58
Millions of254
Y
Year-end
Year-end
cash
dividends,
cash
dividends,¥3.50($0.04)¥3.50 per($0.04)pershare ¥ 6,498¥25.58¥254,043
907¥ 25.58$ ¥9,755
9,755
The following appropriationofretainedearnings
at
March
31,
2010,
is
scheduledforapprovalattheCompany's
The following appropriationof retained
earnings ThouatThousandsofof
18. Company's
SUBSEQUENTEVENT Thousands
Year-end cash dividends, ¥3.50 ($0.04) per
share of Yen
ORMATION
roval at theshareholders
Millions
U.S.
Millions
Dollarsof Yen ¥ 907U.S.
Millions of Yen
U.S. meeting
Dollars on June 24, 2010:
retainedearnings
at
March
31,
2010,
is
scheduledforapprovalatat
theCompany's
shareholders
meeting
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24,
2010:
The
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March
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isCompany'sscheduledforJuneapprovalattheCompany's
ned
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arnings
ftion
ings
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meeting
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meeting
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on
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2010
2Y
19.
SEGMENTINFORMATION
ographicalabout
segments
segments
and
sales
and
tois
sales
foreigntocustomers
foreigncustomerstheCompanyoftheandCompany
consolidated
and2010,
consolidated
subsidiaries
for
the
years
for
the
ended
years
March
ended
Millionsof31,
ThousandsofYear-end
cash¥ dividends,
Year-end¥3.50
cash
dividends,
per share¥3.50($0.04)pershare¥subsidiaries907$ 9,755¥ 907$
907$($0.04)
9,755
ows:
Millions of Yen
U.S. Dollars
ThousandsofInformation about geographicaland sales
to foreign
customers
theconsolidated
Thousands
Thousands
Thousands
of of Thousandsof Company
Thousandsof andThousands
ofofYear-end segments
cash dividends,¥3.50($0.04)pershare¥ subsidi
907
Year-end
cash dividends,
9. SEGMENT INFORMATION
MillionsofU.S.
Yen
U.S.
Millions ¥3.5
of YMillions
Millions
Millions
of of
Yen
Yen
Millionsof YenMillions
U.S.
of
Dollars
Yen
Millions
U.S.
Dollarsof YenDollars
U.S.
of Dollars
Yen
Dollars
U.S. Dollars
U.S. Dollars
gmentshical Segments¥ was
907 as follows: $ 9,755
19.
SEGMENTINFORMATION
19.
SEGMENTINFORMATION
eographical
Information
segments
about
andgeographicalsales
toforeign
segments
customers
and
sales
of
to
the
foreignCompany
customersandconsolidatedoftheCompany
subsidiaries
andconsolidated
for
the
years
subsidiaries
ended
March
for
31
t
and
consolidated
subsidiaries
for
the
years
ended
March
31,
2010
and
2009,
cash
dividends,¥3.50($0.04)
per
share
¥ 907
$ 9,755
Year-end
cash
dividends,¥3.50($0.04)
share
¥ 907
(1)
Geographical
Segments
dends,ndYear-end
ds,
dividends,
cash
¥3.50
Year-end¥3.50
dividends,
cash($0.04)¥3.50($0.04)
dividends,
cash($0.04)per¥3.50
dividends,
per
share
share
($0.04)¥3.50
per share($0.04)
¥3.50
per
share
($0.04)per share
per
share
¥ 907
¥ 907
¥ 907
¥ 907
$per
9,755
¥$ 907
9,755$ Millions
9,755
¥ 907
$ 9,755$ 9,755
Millionsof Yenof$ 9,755
Yen
was
as
follows:
Eliminations
EliminInformation about geographical segments and sales to foreign
customersaboutof theCompany andsegments
consolidated
subsidiInformation
geographicaland sales
to
19.
SEGMENTINFORMATION
Milli
hION
ded
March
2010
31, 2010
Japan
(Corp
was asSegments
follows:d 31,
consolidated
subsidiaries
for the years ended
MarchJapan31, 2010 Asiaand 2009,Asia
was asOther
follows:Other Subtotal Subtotal(Corporate)
gments(1)
Geographicalsegments
and
sales
to
foreigncustomersoftheCompany
andconsolidated
for
the
years
ended
March
31,
2010
and
2
Information
about
geographicalsegments
andsales
foreigncustomersoftheCompany
andconsolidated
subsidintstndlaphicalsales
segments
sales
andtosales
segments
toforeignandforeigntosegments
sales
foreignandcustomers
customers
to
sales
and
foreigncustomers
to
of
sales
of
foreignthecustomersthetoCompany
of31,
foreignCompanythecustomers
Companyofandcustomersandtheconsolidatedofconsolidated
Company
andtheconsolidatedofCompany
andthesubsidiaries
consolidated
Company
subsidiaries
andtosubsidiaries
consolidated
andsubsidiaries
forconsolidated
subsidiaries
for
the
the
for
subsidiaries
years
years
the
ended
subsidiaries
for
years
ended
the
March
for
ended
March
years
the
31,
March
for
31,
ended
years
2010
the
2010
31,
March
ended
and
years
2010
and
2009,
31,
March
ended
2009,
and
2010
31,
March
and
20
Year
Ended
March
2010
Japan
Asia
Other
: geographical(1)
Geographical
Segments(1)
Geographical
Segments
Millionsof
YenMillionsof2009,Yen
Millionsof Yenwasasfollows:
omers
to customers¥ 303,372¥ 303,372 ¥ 8,586 ¥ 8,586 ¥ 1,026 ¥ 1,026 ¥ 312,985¥ 312,985
Eliminations
Eliminations
Revenue:
nsfer
area
922
922 Consolidated
2,998
35 Asia 35 Subtotal
3,956¥ (3,956) ¥ (3Milli
31, transfer
2010Year Ended
March
31, Subtotal
2010Segments
Japan
Asia
Japan2,998 Other
Other3,956(Corporate)
Subtotaah
Other(Corporate)(1)
Geographicalts
Segments
SalesoftoYen
customers¥ 303,372¥ 8,586¥ 1,026
Millions
Interareatransfer
922 March
2,998 316,942 Other35 ) (3ales
Total sales
304,295 304,295
11,585
11,585
1,061
1,061 31,
316,942(3,956Year
Ended March
31, 2010
Japan
Asia
Eliminations
Year
Ended
2010
Revenue:
Millions
ofof
Yen
Milli
Millions
Millions
Millions
of of
Yen
Yen
Millionsof YenMillions
Yen
Millionsof Yen of Yen
Other
Subtotal(Corporate)
Consolidated
omers
Sales
to customers¥
303,372¥ ¥8,586¥ 303,372¥ 1,026¥ 8,586¥ 312,985¥ 1,026¥ 312,9586¥ 1,026¥ 312,985
312,985
Eliminations
Eliminations
Eliminations
Eliminations
Eliminations
Eliminations
Elimination
Total sales
304,295
11,585
1,061 ))3,9
sesng
expenses
303,560
303,560
10,62010,6201,059
1,059
315,240
315,240(3,956(3
Revenue:
Revenue:nsfer
Interareatransfer
922
2,998
922
35
2,998
3,956
35
¥
(3,956998
35 Year
3,956¥ Japan(3,956)Other
Japan
Asia
Other
Subtotal(Corporate)
Consolid
Ended
March
31,Asia
2010
Japan
Asia
Other
arch
, 201031, 2010
Japan
Japan
Japan
Japan
Japan
Asia Asia
Asia
Other
Asia
Other
Asia
Other
Subtotal
Subtotal
Other
Other
Subtotal(Corporate)(Corporate)
Subtotal(Corporate)(Corporate)
Consolidated
Consolidated(Corporate)
Consolidated
ConsolSales
tocustomers¥Subtotal
303,372¥ Subtotal
8,586¥ (Corporate
1,026
Sales
to customers
Operatingexpenses
303,560
10,6201,059
e6ng
income ¥ 1,026¥ 304,295
734¥ ) 734 ¥¥ 11,585
965¥
965 ¥ Interarea
2 11,585¥ transfer
2 ¥ 316,942
1,702¥1,061
1,702
Interareatransfer
922
2,998
35316,9¥ 312,985
312,985
ales
Total
sales
304,295
1,061(3,956)585
1,061
316,942(3,956
312,985
Revenue:
835
3,956¥ (3,956)8,586¥
303,372¥¥
1,026¥
312,985¥2 ¥312,
customers¥
303,372
¥
8,586
¥
1,026
ustomerss¥ Operating
303,372¥Sales
303,372¥ to
303,372¥
303,372¥¥¥
8,586
303,372
8,586
¥
¥
8,586
303,372
¥
¥
8,586
1,026
¥
¥
1,026
8,586
¥
1,026
¥
8,586
¥
¥
1,026
312,985¥
312,985¥
1,026¥
312,985¥
1,026¥
312,985¥
312,985¥
312,985¥
312,985¥
312,985¥
312,985312
income
¥
734
¥
965
¥
Total
sales
11,585
1,061315,2
Total
sales
ssets
¥ 319,561¥ 2,998
319,561¥ 10,620
9,413¥ 9,413 ¥ 304,295
1,772
¥
1,772
¥ 330,747¥
330,747¥ (2,572
ses
Operatingexpenses
303,560
303,560
1,059
10,620315,240
1,059(3,956620
1,059
315,240(3,956)311,283
3,956(3,956)¥ (3,956
Interareatransfer
922
2,99835 ))¥ (2r
922922922 922
922
2,998
2,998
922
2,998
922
35 312,985
35
2,9983535
3,956
3,956
35 3,956
35¥3,956(3,956¥ (3,956
3,956)¥ (3,956) ¥3,956¥) (3,956)¥)(3,956)
5transfer
1,061
316,942(3,956) 2,998352,998
Total
assets¥319,561
¥
9,413
¥
1,772
Operatingexpenses
303,560
10,6201,059
Operatingexpensese
Operatingincome¥73411,585¥ ¥ ¥965
734¥304,295¥
2316,942
965¥ 11,585
1,702¥ (3,956
2 )¥ 312,
1,7
965
¥
2
¥
1,702
1,702
304,295
1,061
Total
sales
1,061
s0
l sales
304,295
304,295
304,295
304,295
11,585304,295
11,585
11,585304,295
1,061
1,061
11,585
1,061
11,585
1,061
316,942
316,942
1,061
316,942
1,061
316,942(3,956(3,956
316,942) (3,956)316,942) (3,956
312,985
312,985(3,956)
312,985)(3,956
312)
1,059
315,240(3,956) 11,585
311,283413
penses5

come3

income¥ ¥ 1,772
734
965¥
2330,7
Operatingincome ¥ ¥330,747
303,560
10,6201,059) 311,283
311,
Total¥ 1,772
assetsOperating¥ 319,561¥ 1,059¥10,620
319,561¥315,240
9,413¥ (3,956
1,772
) 311
¥ expenses
330,747¥ 303,560(2,572) 1,059¥9,413
328,174
Operating
303,560
10,6201,059
303,560
303,560
303,560
303,560
10,620303,560
10,62010,62010,6201,059
10,6201,059
315,240
315,240
1,059
315,240
1,059
315,240(3,956(3,956315,240) (3,956)315,240) (3,956
311,283(3,956) ¥ (2,572
311,283)¥(3,956
)
¥
2
¥
1,702
¥
1,702
Total assets¥ 319,561¥ 9,413¥ 1,772
Total¥734¥ ¥734¥2 ¥ 1,1¥
734¥¥ Operating¥ 734¥ 734income
¥
¥734
¥
734
¥ 965¥
965
734
¥ 965
¥965
965
¥¥ 2 ¥2965¥ ¥2 ¥965¥ 2¥ 1,702
2¥ 1,702¥ 2 1,702¥ ¥assets¥ 1,702
2 1,702
¥
1,702
¥ 965
1,702
¥ ¥ 1,702
1,702
¥¥
1,702
¥ 1,772¥ 330,747¥ (2,572 )¥ 328,174¥ ¥319,561¥ ¥9,413
1,772
330,747¥ (2,572¥ ¥328,
assets¥¥ 319,561¥¥ Total319,561¥ 319,561¥ 319,561
319,561¥ ¥¥9,413
319,5619,413¥ ¥ 9,413
319,561¥9,413
1,772¥¥1,772
9,413¥ 1,772¥ ¥9,413¥ ¥1,772
330,747¥ 330,747¥ 1,772
330,747¥ ¥1,772¥
330,747¥ (2,572¥¥ (2,572
330,747)¥ (2,572¥ 9,413)330,747¥) (2,572¥ 328,174¥)¥328,174(2,572) ¥¥ 1,772
328,174¥)(2,572
328)

CHIYODA CORPORATION ANNUAL REPORT 2010 49- 32 - - 32 -

Chiyoda Corporation and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
Years Ended March 31, 2010 and 2009

Thousandsof U.S
Thousands
T
ThousandsofU.
Thousands
Year
Ended
March
31,
2010 March 31, 2010
Japan
AsiaAsia
Other
S
Year
Ended
March
31,
Year
2010
Ended
Japan
Japan
Asia
Other of U.
Oousands ofU.S.
Dollars
Thousands of U.S. Dollars
Other
Eliminations
Year Ended
Ended March
March
31, 2010
2010
Japan
Asia
Year
31,
Asia
Other
Revenue:
Eliminations
Year Ended March 31,Japan
2010
Japa
Revenue:
Revenue:er
Subtotal(Corporate)
ConsolidatedSales
tocustomers$
3,262,072$
92,331$
11,037
$ 3
Asia
Other
Subtotal(Corporate)
Consolidated
Sales
to customersSales to customers$ 3,262,072 $ 3,262,072$ 92,331 $ 92,331$ 11,037 $1
Revenue:
Revenue:
Interareatransfer
9,920
32,244
377
Revenue:
Interareatransfer
Interarea transfer
9,920
9,920
32,24432,244
377 $
Sales
to
customers$
3,262,072$
92,331$
11,037
Sales to customers$
3,262,072$
92,331$
11,037$
Sales to customers$ 3,262,,037$ 3,365,440$ 3,365,440
Interareatransfer
9,920
32,244377
Interareatransfer
9,920
32,244
377
Total
sales
3,271,992
124,575
11,414
3
92,331$ 11,037$ 3,365,440$ 3,365,440
Interareatransferof U.S. 9,
D
Total
sales
Total
sales
3,271,992
3,271,992
124,575 Thousands
124,575
11,4141
377
42,542$ (42,542)
T
Thousands
32,244377
42,542$ (42,542 )
Total
sales
3,271,992
124,575
11,414
Total
sales
3,271,992
124,575
11,414
Operatingexpenses
3,264,095
114,195
11,389
3
Total
sales
3,271,
Thousands
OperatingOperating
3,264,095
3,264,095
114,195
Year3,407,983
Endedexpenses
March
Japan
Asia
Other
Subt
Thousands,414(42,542)March 31,3,365,440
Year
Endedexpenses
2010Japan 114,195
Asia 11,389
O1
Year
Ended
March31,
31,2010
2010
Japan
Asia
Other
Thousands
124,575
11,414
3,407,983
3,365,440
Thousandsof U.S. Dollars(42,542 )Operatingexpenses
3,264,095
114,195
11,389Operatingexpenses
3,264,095
114,195
11,389Operatingincome$ $7,897
10,380$Operating expenses
3,264,
Thousandsof 31,U.S.
Dollars3,347,139Eliminations
Year
EndedOperating
March
31,
2010
Japan $ $ 7,897
Asia
Other25
Operatingincome7,897$ 10,380$ $ 10,380$25Other$
Revenue:
Year
Ended
March
Japan
Asia
,389
3,389,680(42,541)2010
Year
EndedRevenue:
March
31,income
2010
Japan
Asia
Other
114,195 Revenue:
11,3893,389,680)
Year 3,347,139
Ended
March
31, 2010 $ 92,331
Eliminations
Asia
Other
Subtotal (42,541(Corporate)
ConsolidatedSales
tocustomers$ 3,262,072$ $11,037$ 3,36Sales
tocustomers$
3,262,072
92,331$
1
Sales
tocustomers$
3,262,072$
92,331$
11,037
Operatingincome$
7,897$
10,380$25$
Operatingincome7,897$ 101,221
10,380$19,055
Operating income
$
7,
Other
Subtotal(Corporate)
Consolidated
Total
assets$$3,436,143$$$
3
Revenue:
Interareatransfer
32,244377 $ 25
4
Revenue:
Total
assetsTotal
assets$9,9203,436,143$ 101,221
19,055
1
25 Asia$
18,302$
18,301
Interareatransfer
9,920
32,244
Interareatransfer
9,920 $ 3,436,143
32,244 $ $101,221
377 $
10,380$ Revenue:25$
18,302$
18,301
Revenue:
Sales toto customers
customers$ 3,262,072
3,262,072$ 92,331
92,331$ 11,037
11,037
Sales
$
$
$
Sales
to
customers$
3,262,072$
92,331$
11,037
Total
assets$3,436,143$
101,221$
19,055$
TotalTotal
assets3,436,143$ 101,221$ 19,055
Sales
to3,271,992
customers$ $3Interareatransfer
9,920
32,244based
377
Total assets$
3,436,$Notes:
92,331$sales11,037$ 3,365,440$$within
3,365,440
sales
124,575
11,414
3,40
1.
TheCompany
andsubsidiaries
operatewithinthreegeographic
segmentsonthecountriInterarea
9,920
32,244
377
Total
sales
3,271,992
124,575
1
3,271,992
124,575
11,414
Interareatransfer
9,920
32,244377
1.TotalThe
Company
Notes:
and1.
consolidated
The
Company
andsubsidiaries
consolidated
operatesubsidiaries
operatethree
withingeographic
threegeographic
segments
based
segments
on
the
base
,055$ 92,331$Notes:3,556,420$transfer(27,665)consolidated$ 3,528,755
Interareatransfer$ 11,037 377$ 3,365,440$ 3,365,440
101,221$ 19,055$ 3,556,420$ (27,665$) (42,542$ )3,528,755
32,24442,542
Notes:
1.
The
Company
andconsolidated
subsidiaries
operatewithinthreegeographic
segments
based
on
the
countr32,244377
42,542$(42,542
)
Total
sales
3,271,992
124,575
11,414
Operatingexpenses
3,264,095
114,195
11,3893,38
Notes: The
1. TheThe
Company
andconsolidated
subsidiaries
operatewithinthreegeographic
segments
on 11,414
thecountrsegments
consistedof thethefollowing
in
2010:
Total
sales
3,271,992
124,575
Notes:
1.
The
Company
andconsolidated
operatewithinOperatingexpenses
114,195
1
Operatingexpenses
3,264,095
114,195
11,389Total
sales
3,271,992
124,575 based
11,414
segments
consistedThe
segments
ofconsistedfollowingofcountries
countries
thefollowingincountries
2010:
in3,264,095
2010: subsidiaries
on the countries
where
the
companies
arelocated.
Total 3,365,440
sales
3124,575)
phic segments
based on the 11,414
countries where3,407,983
the companies are(42,542
located.
The
segments
consistedofthefollowing
countriesin2010:
Operatingexpenses
3,264,095
114,195
11,389124,575
11,414
3,407,983(42,542) countries
The
segments
consistedofthe following
in$
2010:
OperatingOperating
income$ 3,365,440
7,897
10,380$ $ countries
25 $ 11,389
Asia:
Indonesia,
Singapore,
Philippines,
Myanmar,
Malaysia
and$Thailandexpenses
3,264,095
114,195
The
segments
consisted
of
the
in$25
2010
Operatingexpenses
3,264,095
114,195
11,389
Asia:
Indonesia,
Asia:
Singapore,
Indonesia,
Philippines,
Singapore,
Myanmar,Philippines,
Malaysia
Myanmar,
Malaysia
Thailandand Thailand
Operatingincome$and
7,897
10,380$ 1
Operatingincome7,897$ following
10,380Operatingexpenses
3
114,195
11,3893,389,680(42,541) Nigeria
3,347,139
Other:
Qatar,United
UnitedStatesofAmericaandOther:
Qatar,
Other:
StatesQatar,ofUnitedAmericaStatesandofNigeria
Americaand Nigeria
Asia:
Indonesia,
Singapore,
Philippines,
Myanmar,
Malaysia
andThailand
114,195
11,3893,389,680)
3,347,139
Asia:
Indonesia,
Singapore, (42,541
Philippines,
Myanmar,
Malaysia
andThailandOperatingincome$7,897$ Philippines,
10,380$25
Asia:
Indonesia,
Singapore,
Myanmar,Operatingincome$
7,897$
10,380$25
Total assets$
3,436,143$
101,221$ $19,055$ Mala3,55
Operatingincome$
7,897$
10,380$25
Total
assets$3,436,143
101,221$
Total
assets$3,436,143$
101,221$
19,055
Other:
Qatar, $mainly
UnitedStates ofof America
Americaandloans
Nigeria
Operatingincome$ 1
Qatar,
UnitedStatesandNigeria
2. Corporate
assetsconsistlong-term
investment
securities
theCorporate$ Other:25
18,302$and
18,301iland $ 10,3802. Corporate
Other:
Qatar,
UnitedofofAmerica
andCompany.
Nigeria
assets
2. Corporate
mainlyconsistassets ofofmainlylong-term
consistloans
oflong-termandinvestment
loans
andStates
securities
investment
securities
of Company.
theof
the ComCor$ 10,380$ ¥2,992
25million$($32,181
18,302$
18,301
million($32,181
thousand).
Total
assets$ 3,436,143
3,436,143$ 101,221
101,221$ 19,055
19,055¥2,992¥2,992
millionthousand).
($32,181
thousand).
Total
assets$$$
Notes: 1.
The
Company
andconsolidated
subsidiaries
operatewithinwithin
threegeographic
segments
based
on basedthecountries
Total
assets$3,436,143$ 101,221$ 19,0552.
assetsmainlyconsistofloans
investment
securities
ofthe
Corporate
Notes:
1.
The
Company
andsubsidiaries
consolidated
subsidiaries
operatewithinthreegeographic
segments
base
Notes:
1.
The
Company
andconsolidated
threegeographic
segmentsonthe
2. Corporate
Corporate
assetsconsistof$ long-termlong-termloans$ andandinvestment
securities
ofthe Company.
Company.
Corporate2.)operate
Corporate
assetsmainlyconsistoflong-term
loans
and
Total
assets$in3$ 101,221$of19,055$ mainly
3,556,420(27,665
3,528,755
ny. Corporate
assets as ¥2,992
March
31,
2010
were
million($32,181
thousand).
¥2,992
million($32,181
thousand).
Millions
ofc
uritiesof the Company.
Corporate
assets
as
of
March
31,
2010
were
¥2,992
million($32,181
thousand).
$ 101,221$
19,055$3,556,420$(27,665)$
3,528,755
Milli
Notes:
1.
The
Company
andconsolidated
subsidiaries
operatewithinthreegeographic
segments
based
on
the
The
segments
consistedofthefollowing
countriesin2010:
Notes:
1.
consolidated
subsidiaries
operatewithingeographic
Theandsegments
consistedof thefollowingin 2010:The segments
consistedof thefollowing
countries
in countries
2010: three
Notes:
1. TheThe Company
Company
andconsolidated
subsidiaries
operatewithinthreegeographic segments
segments based
based onon thethe ccNotes:The Company and consolidated subsidiaries operatewit
e geographic segments based on the countries where the companies
are 1.
located.
MillionsofMillions Sub
of
Year
Ended
March
31,
2009 MarchJapan
AsiaAsia
Other Other
Year
Ended
March
31,
Year
2009
Ended
31,
2009
Japan
Japan
Asia
Ot
The
segments
consistedofthefollowing
countriesin2010:
ographic
segments
based
on
the
countries
wherethecompanies
arelocated.
Asia:
Indonesia,
Singapore,
Philippines,
Myanmar,
Malaysia
andThailandMillions of Yen
consistedoffollowing
in
2010:
Asia:
Indonesia,
Singapore,
Philippines,
Myanmar,
Malaysia
and Thailand
Asia: The
Indonesia,
Singapore,
Philippines,
Myanmar,
Malaysia
andThailandThe
segments
consistedof thethefollowing countries
countriesin2010:
Millions
ofsegments
YenUnited
TheJapansegments
consistedAsia
of the following
countries inSu
Other:
Qatar,
Statesof America
andNigeria
Eliminations
Other:
Qatar,
UnitedStatesofAmericaand Nigeria
Qatar,
UnitedStatesofAmericaandNigeria
Year
March
31,
2009
Other
Year Ended
EndedOther:
March
31,
2009
Japan
Asia
Other
Revenue:
Eliminations
Year
Ended
March
31,
2009
JapanSu
Asia: Indonesia,
Indonesia,
Singapore, Philippines,
Philippines, Myanmar,
Myanmar, Malaysia
Malaysia andand Thailand
Thailand
Revenue:
Revenue:
Asia:
Singapore,r
Subtotal(Corporate)
Consolidated
Asia:
Indonesia,
Singapore, Philippines,
Malaysia ¥andThailandSales
to customers¥ Myanmar,
429,879
16,548¥9 Corporate
¥as
Other
Subtotal(Corporate)
Consolidated
Asia:
Indonesia,
Singapore,
Philippines,
Myanmar,
Other:
Qatar,
UnitedStatesofAmericaandNigeriaSales
tocustomers
Sales
tocustomers¥
429,879¥
429,879¥
16,548¥16,548¥9¥4
2.
Corporate
assetsmainlyconsistoflong-termloans
andinvestment
securitiesoftheCompany.
aAsia
and Thailand
Other:
Qatar,
UnitedStatesofAmericaandNigeria
Revenue:
2. Corporate
assetsmainlyofloans and investment
securitiesof the Com
2. Corporate
assetsmainlyUnited
consistof long-termand16investment
securitiesof theCo
Other:
Qatar,
Statesof consist
America loans
andlong-term
Nigeria
Revenue:
Interareatransfer
2,103
42 Company.
Revenue:
Other:
Qatar,
UnitedStatesofAmericaandNigeriad Thailand Interarea
transfer
Interareatransfer
16
16
2,103
2,103
42
¥2,992
million($32,181
thousand).
¥2,992 million($32,181 thousand). ¥million ($32,181
thousand).
Sales¥2,992
to customers
customers¥ 429,879
429,879¥ 16,548
16,548
¥
9
¥
Sales
to
¥
¥
9
¥
to customers¥ 429,87
2. Corporate
Corporate assets
assets mainly
mainlyconsistSalesof long-termlong-termloans andand investment
investment
securities ofof theCompany.
Corp2.
consistofloans
securities
Company.
9¥ 446,438¥ 446,4382.
Corporate
assets mainly
consistInterareaof long-term
loans
and
investment
securities of thetheCompany. Corp
Corp
Interareatransfer
16
2,103
42
Interareatransfer
16
2,103
42
Total
sales
429,896
18,65152
4
16,548¥9¥446,438¥
446,438transfer
1
2.
Corporate
assetsmainlyconsistoflong-term
loans
an¥2,992
million($32,181
thousand).
MillionsofYenment securities2,161
ofthe Company.
Corporate
assetsas thousand).
ofMarch 31, 2010 were 429,896
Total
sales
Total
sales
429,89618,651
18,65152 Milli¥2,992
million($32,1812¥ (2,161)¥2,992
million($32,181
thousand).
2,103
2,161
¥ (2,161
million ($32,181 thousand).
securities of the 42
Company.
Corporate
assets as ofMarch) 31, 2010 were ¥2,992
Total
sales
429,896
18,651
52
Total
sales
429,896
18,651
52
Operatingexpenses
424,825
16,49746
4
Total Japan
sales
MillioOperatingOperating424,825
424,825
16,497
16,49746 429,89
Year
Endedexpenses
March
Asia
Other
SubtotMillio2448,600(2,161Year
Ended)expenses
March 31, 446,438
2009
Japan
Asia Other
Ot
Year
Ended
March31,
31,2009
2009
Japan
Asia
Millio18,651
52
448,600 of Yen(2,161 )446,438
Millions
Operatingincome
expenses
424,825
16,49746
Operatingexpenses
16,49746
Operating¥ ¥ 424,825
5,070
2,154
5 ¥Other¥¥Operating expenses
Millionsof)income
Yen
Year
Ended
March
31,
2009
Japan ¥ ¥5,070
Asia
Other
Operatingincome5,070¥ 2,154¥ ¥2,154
5 424,82
Revenue:
Year
Ended
March
31,
2009
Japan
Asia
6
441,369(2,157439,211Eliminations
Year
EndedOperating
March
31,
2009
Japan
Asia
Other
Revenue:
Revenue:
16,49746
441,369(2,157)439,211
Year
Ended
March
31,
2009
Ja
Eliminations
Asia
Other Sales to customers
Subtotal(Corporate) ¥ 429,879
ConsolidatedSales
tocustomers¥ 429,879
16,548¥¥ 16,548
9¥ 446,
Operatingincome
¥
5,070
¥
2,154
¥
5
¥
¥¥
Sales
to
customers¥
429,879¥
16,548¥9Operatingincome
5,070
2,154
¥6365
Operating income
¥
5,07
Asia
Other
Subtotal(Corporate)
Consolidated
Total
assets¥¥¥347,936¥¥10,338¥2,103¥¥¥
3
Revenue:
Interareatransfer
16
2,103
42
2,
Revenue:
Total
assetsTotal
assets347,936¥
347,936¥
10,338¥
10,338¥636
5¥Interarea
7,230
¥
(3
)
¥
7,227
Interareatransfer
16transfer
16
2,103
42
2,154
¥ Revenue:
5Sales
¥
7,230
¥
(3 )
¥
7,227
Revenue:
Sales toto customers
customers¥ 429,879
429,879¥ 16,548
16,548
¥
9
¥
¥
¥
9
Sales
to
customers¥
429,879¥
16,548¥9
Total
assets¥347,936¥
10,338¥636¥
TotalTotal
assets¥ ¥347,936¥ 10,338
¥ 636
Sales
to429,896
customers¥ ¥42Interareatransfer
16
2,103 based
42
Total assets¥ countri
347,93¥Notes:16,548¥9 transfer¥ 446,438
446,438
sales
18,651
52
448,
1.
The
Company
andconsolidated
subsidiaries
operatewithinthreegeographic
segments
ontheInterarea
16
2,103
42
Total
sales
429,896
18,651sales
429,896
18,651
52
Interareatransfer
16
2,103
42
1.TotalThe
Company
Notes:
and1.
consolidated
The
Company
andsubsidiaries
consolidated
operatesubsidiaries
withinoperatethree
withingeographic
threegeographic
segments
based
segments
on thebase
6 ¥ 16,548¥ Notes:
358,912¥ 357,816
Interareatransfer
9 42¥¥(1,095¥ )446,438¥ 446,438
10,338358,9122,103 ¥ 636¥
2,161 ¥ (1,095 ) ¥ (2,161)¥ 357,816
Notes:
1.
The
Company
andconsolidated
subsidiaries
operatewithinthreegeographic
segments
basedoncountr
2,103
42
2,161
¥ (2,161
)
Total
sales
429,896
18,651
52
Operating424,825
16,49746 operate
441,
Notes: expenses
1. TheThe
Company
andconsolidated
subsidiaries
operatewithinthreegeographic
segments
basedon thethecountrsegments
consistedof thethefollowing
in
2009:
Total
sales
429,896
18,651
52
Notes:
1.
The
Company
andconsolidated
subsidiaries
withinOperatingexpenses
Operatingexpenses
424,825
16,497
46
Total
sales
429,896
18,65152
The
segments
consistedThe
segments
ofconsistedfollowingofcountries
countries
thefollowingincountries
2009:
in424,825
2009: 16,497
on the countries
where
the
companies
arelocated.
Total sales
42
18,651
52
448,600(2,161)
446,438
phic segments
based on the countries
where
the companies arelocated.
The
segments
consistedofthefollowing
countriesin2009:
Operatingexpenses
424,825
16,497 ¥ countries
46in¥ 2009
18,651
52
448,600(2,161) countries
446,438
The
segments
consistedofthe following
in2009:
OperatingOperating
income¥Philippines,
5,070
2,154
5
Asia:
Indonesia,
Singapore,
Philippines,
Myanmar,and
Thailandexpenses
424,825
16,497The
segments
consistedoftheOperatingexpenses
424,825
16,497465
Asia:
Indonesia,
Asia:
Singapore,
Indonesia,
Philippines,
Singapore,
Myanmar,
Malaysia
Myanmar,
Malaysia
Thailandand Thailand
Operatingincome¥¥and
5,070¥ 2,154¥7,
Operatingincome¥ Malaysia
5,070¥ following
2,154
¥ 46
Operatingexpenses
42
16,49746 United
441,369(2,157)439,211
Other:
UnitedStates
StatesofAmericaandNigeria
Other:
Other:
ofUnitedAmericaStatesandof
Nigeria
Americaand Nigeria
Asia:
Indonesia,
Singapore,
Philippines,
Myanmar,
Malaysia
andThailand
16,49746 Asia:
441,369 Singapore,(2,157)439,211
Indonesia,
Philippines,
Myanmar,
Malaysia
ThailandOperatingincome¥5,070and¥ 2,154
2,154¥
5 ¥ 358,
Asia:
Indonesia,
Singapore,
Philippines,
Myanmar,Mala
Operatingincome
¥
5,070
¥
¥
5
Total
assets¥347,936¥
10,338¥636
Operatingincome
¥
5,070
¥
2,154
¥
5
Total assets
assets mainly¥ securities
347,936¥ Company.
10,338 ¥ Corporate¥
Total assets¥ 347,936¥ 10,338
636
UnitedofAmericaandNigeria
OperatingincomeOther:
UnitedStatesofAmericaandNigeria
2. Corporate
consistofandinvestmentof andthe¥ Other:
5 assets¥ States
7,230¥long-term(3 ) loans
¥ and
7,227
iland ¥ 2,154 2. Corporate
Other:
UnitedStatesAmerica
2. Corporate
mainlyconsistassetsofmainlylong-term
consistloans
oflong-term
investment
loans
andof
securities
investment
securities
ofNigeria
the Company.
of the ¥ComCor
¥ 2,154
¥
5
¥
7,230
¥
(3
)
¥
7,227
¥3,273
million.
Total
assets¥347,936¥
10,338¥636¥3,273
million.
¥3,273
million.
Total
assets¥347,936¥¥
Notes: 1.
The
Company
andconsolidated
subsidiaries
operatewithinthreegeographic
segments
based
on basedthecountries
Total
assets¥347,936¥ 10,338
10,338¥ 636
636
2. Corporate
assetsmainlyconsist
of
loans
and
investment
securities
ofthe
Corporate
Notes:
1.
The
Company
andsubsidiaries
consolidated
subsidiaries
operatewithinthreegeographic
segments
base
Notes:
1.
The
Company
andconsolidated
operatewithinthreegeographic
segments
onCorporate
assetsconsistof¥ long-termlong-term
loans
investment
securities
ofthe Company.
Company.
Corporate
2.
Corporate
assetsmainlyconsistoflong-term
loans
and
in
Total
¥the
34
¥ 10,338assets 2.
¥ 636¥ mainly
358,912(1,095) assets¥and357,816
ny. Corporateas ¥3,273
ofMarch
31, 2009
weremillion.
¥3,273
million.
uritiesoftheCompany.
Corporate
assets
as
of
March
31,
2009
were
¥3,273
million.
¥ 10,338¥ 636¥ 358,912¥ (1,095)¥operate
357,816
Notes:
1.
The
Company
andconsolidated
subsidiaries
withinthreegeographic
segments
based
on
the
c
The
segments
consistedofthefollowing
countriesin2009:
Notes:
1.
consolidated
subsidiaries
operatewithingeographic
Theandsegments
consistedof thefollowingin 2009:
The segments
consistedof thefollowing
countries
in countries
2009: three
Notes:
1. TheThe Company
Company
andconsolidated
subsidiaries
operatewithinthreegeographic segments
segments based
based onon thethe ccNotes:The Company and consolidated subsidiaries operate wit
e geographic segments based on the countries where the companies
are 1.
located.
The
segments
consistedofthefollowing
countriesin2009:
ographic segments basedon thecountries
where
the Philippines,
companies
areMyanmar,
located.
Asia:
Indonesia,
Singapore,
Malaysia
andThailandThe
segments
consistedoffollowing
countries
in2009:
Indonesia,
Singapore,
Philippines,
Myanmar,
Malaysia
and Thailand
Asia:
Indonesia,
Singapore,
Philippines,
Myanmar,
Malaysia
andThailandThe
segmentsAsia:
consistedof thethefollowing
countries
in2009:
Other:
Statesof ofAmericaandNigeria
Other:
UnitedStatesofNigeria
America The
and segments
Nigeria consisted of the following countries in
Other:United
UnitedStatesAmericaandAsia: Indonesia,
Indonesia, Singapore, Philippines,
Philippines, Myanmar, Malaysia
Malaysia and Thailand
Thailand
Asia:
Asia: Indonesia, Singapore,
Singapore, Philippines, Myanmar,
Myanmar, Malaysia andand Thailand
Asia:
Indonesia,
Other:
UnitedStatesAmericaandNigeria2.
consist
of
loans
and
investment
securitiesof the Philippines,
Company.
Corporateasa and Thailand
Other:
UnitedStatesofAmericaandNigeria2.mainly
Corporate
assetsmainlyconsistoflong-termloans
and Singapore,
investment
securities
ofMyanmar,
the Com
2. Corporate
Corporateassets
assetsmainlyconsistof long-term
loans
and investment
securitiesof the Company.
Co
Other:
UnitedStatesof long-term
AmericaandNigeria
Other: United States of America and Nigeria
d Thailand¥3,273¥3,273million.
million. ¥3,273 million.
2. Corporate
Corporate assets mainly
mainly consist ofof long-term loans
loans and investment
investment securities ofof the Company.
Company. Corp2.
2. Corporate assets
assets mainly consist
consist of long-termlong-term loans andand investment securities
securities of thethe Company. Corp
Corp
Corporate assets mainly consist of long-term loans an¥3,273
million.
ment securities of the Company.
Corporate
assets as of March 31, 20092.were¥3,273
million.
¥3,273
million.
securities of the Company. Corporate assets as of March 31, 2009 were ¥3,273 million.

50 CHIYODA CORPORATION ANNUAL REPORT 2010
- 33
- - 33- 33 -

Dollars
sofofU.S.
U.S.
Dollars
Subtotal
Subtotal

Eliminations
Eliminations(Corporate)(Corporate) Consolidated
Consolidated$$
3,365,440
3,365,440
42,542
42,542$ (42,542)$ (42,542)$ 3,365,440$ 3,365,440

3,407,983(42,542)3,365,440
Dollars
3,407,983(42,542)3,365,440sU.S.
of U.S.
Dollars
Eliminations
Eliminations
3,389,680(42,541)
3,347,139
3,389,680(42,541)
3,347,139
Subtotal
Consolidated
Subtotal (Corporate)(Corporate)
Consolidated$ $ 18,302
18,302$ 3,365,440$ 3,365,440$$
3,556,420
42,542
3,556,420
42,542$
18,301$
18,301$ 3,365,440$ 3,365,440$ (27,665$ (42,542) )$$ (27,665)) $ 3,528,755$ 3,528,755(42,5423,407,983(42,542) are located.
countries
where
thethecompanies
3,407,983(42,542) 3,365,440
3,365,440
countries
where
companies
arelocated.
3,389,680
3,389,680$(42,541(42,541)) 3,347,1393,347,139

18,302$
18,302$

18,301$

18,301$ 3,556,420)$ 3,528,755$ 3,556,420 $ (27,665$ (27,665)$ 3,528,755
porate
as as
of of
March
31, 31,
2010 2010
were wererporateassets
assetsMarchwhere where
the companies
are located.
entriescountries
the companies
are located.

ons
ionsofofYen
Yen
Subtotal
Subtotal

Eliminations
Eliminations(Corporate)(Corporate) Consolidated
Consolidated¥446,438
446,438¥ 446,438
ate¥ assets
as of as
March
31,
2010
were ¥ 446,438
orporate
assetsof¥ (2,161
March
2,161
)31,) 2010 were2,161
¥ (2,161

448,600of Yen448,600
ionsofYen
441,369
441,369
Subtotal
Subtotal¥ ¥ 7,230
7,230¥ 446,438¥ 446,438¥¥
358,9122,161
358,9122,161(2,161)
446,438(2,161)
446,438
Eliminations
Eliminations(2,157)439,211(2,157 ) Consolidated
439,211(Corporate)(Corporate)
Consolidated¥¥ (3 ) (3 )

¥
7,227
¥
7,227
¥ 446,438¥ 446,438¥ (1,095)¥ 357,816¥ (2,161)(2,161¥¥(1,095))¥ 357,816

448,600(2,161)(2,161
446,438
countries
where
thethecompanies
are located.
448,600)
countries
where
companies
arelocated.446,438
441,369
441,369
¥

7,230
¥
7,230

(2,157 )(2,157 )
¥

(3
¥)

(3 ) ¥

439,211 439,211
7,227
¥

7,227

¥ 358,912¥ (1,095)(1,095 ) ¥ 357,816¥ 358,912¥
porate
as as
of of
March
31,
2009 2009were were ¥ 357,816
rporateassets
assetsMarch
31,
where where
the companies
are located.
entriescountries
the companies
are located.

ate assets
as of as
March
2009
were
orporate
assetsof 31,
March
31,
2009 were

CHIYODA CORPORATION ANNUAL REPORT 2010 51

Chiyoda Corporation and Consolidated Subsidiaries
Notes to Consolidated Financial Statements
Years Ended March 31, 2010 and 2009(2) Sales to Foreign Customers

Year Ended March 31, 2010
Overseas sales (A)Consolidated sales (B)(A)/(B)

Year Ended March 31, 2010
Overseas sales (A)Consolidated sales (B)(A)/(B)

Asia

Millions of Yen
The Middle
and Near East
Oceania

Other

Total
¥ 169,107
312,98554.03%¥ 12,709¥ 147,336¥ 6,730¥ 2,330

4.06%

47.07%

2.15%

0.75%

Thousands of U.S. Dollars
The Middle
and Near East
Oceania
Other

Asia$ 136,665$ 1,584,260$ 72,376$ 25,059

4.06%

47.07%

2.15%

0.75%

Total
$ 1,818,361
3,365,440
54.03%

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

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

Year Ended March 31, 2009
Overseas sales (A)Consolidated sales (B)(A)/(B)Asia

The Middle
andNear East

Russia andCentral Asia

Other

Total

¥ 20,380¥ 277,627¥ 23,308¥ 1,966

4.56%

62.19%

5.22%

0.44%

¥ 323,282
446,438
72.41%

Note: The Company and consolidated subsidiaries are summarized into four segments bygeographic area based on the countries where the companies are located.
The segments consisted of the following countries in 2009:
Asia:
The Middle and Near East:
Russia and Central Asia:
Other:

Singapore, Indonesia, Malaysia, Thailand and others
Qatar, UAE and others
RussiaAustralia, Algeria 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.
The proportion of engineering business is over 90% in the total sales of the Group. Accordingly,
the presentation of industry segment information is not required under Japanese accounting
standards.
* * * * * *52 CHIYODA CORPORATION ANNUAL REPORT 2010
- 34 -CHIYODA CORPORATION ANNUAL REPORT 2010 53

Global Network(As of July 1, 2010)

Home Offices
Yokohama Head OfficeKoyasu Office & Research Park

Kawasaki OfficeOsaka Office12-1, Tsurumichuo 2-chome,

13, Moriya-cho 3-chome,

Solid Square west pavilion 9F,

14-10, Nishinakajima 5-chome,

Tsurumi-ku, Yokohama

Kanagawa-ku, Yokohama

580, Horikawa-cho,

Yodogawa-ku, Osaka

230-8601, Japan

221-0022, Japan

Saiwai-ku, Kawasaki

532-0011, JapanTe l : (81) 45-521-1231 (voice guidance)

Te l : (81) 45-441-1268

212-0013, JapanTe l : (81) 6-6390-3411

Fax: (81) 45-503-0200

Fax: (81) 45-441-1297

Te l : (81) 45-521-1231 (voice guidance)

Fax: (81) 6-6889-5101

Fax: (81) 45-503-0200

Domestic Subsidiaries & Affiliated Companies
Engineering

Business Support

C hiyoda Advanced Solutions Corporation

Chiyoda TechnoAce Co., Ltd.

A rrow Business Consulting Corporation

Services: Advanced engineering consulting

Services: Design and construction for

Services: Consulting for finance and accounting

1-25, Shinurashima-cho 1-chome,pharmaceutical facilities

32-1, Tsurumichuo 4-chome, Tsurumi-ku,

Kanagawa-ku, Yokohama 221-0031, Japan13, Moriya-cho 3-chome, Kanagawa-ku,

Yokohama 230-0051, JapanTe l : (81) 45-441-1260

Yokohama 221-0022, JapanTe l : (81) 45-502-5774

Fax: (81) 45-441-1264

Te l : (81) 45-441-9600

Fax: (81) 45-502-5753

URL: http://www.chiyoda-as.co.jp/

Fax: (81) 45-450-5236
URL: http://www.cta.chiyoda.co.jp/

Chiyoda Keiso Co., Ltd.

A rrowhead International Corporation
Services: Travel services and supply ofServices: Design, procurement and construc-

Chiyoda U-Tech Co., Ltd.

spare partstion for electrical and instrumentation facilities

Services: Consulting and human resources

7-8, Shibakoen 1-chome, Minato-ku,

13, Moriya-cho 3-chome, Kanagawa-ku,

placement

Tokyo 105-0011, Japan

Yokohama 221-0022, Japan

15-19, Tsurumichuo 2-chome, Tsurumiku,

Te l : (81) 3-5470-0880

Te l : (81) 45-441-1433

Yokohama 230-0051, Japan

Fax: (81) 3-5470-0890

Fax: (81) 45-441-1434

Te l : (81) 45-502-7618

URL: http://www.arrowhead.co.jp/

URL: http://www.ckc.chiyoda.co.jp/

Fax: (81) 45-503-5399
URL: http://www.utc-yokohama.com/

Chiyoda Kosho Co., Ltd.

A rrow Human Resources Co., Ltd.
Services: Placement of technicians and officeServices: Design, construction and

IT Engineering Limited

staff and reemployment support

maintenance for domestic projects

Services: IT consulting and solution provider

43, Hon-cho 4-chome, Naka-ku,

34-26, Tsurumichuo 4-chome, Tsurumiku,

1-25, Shinurashima-cho 1-chome,

Yokohama 231-0005, Japan

Yokohama 230-0051, Japan

Kanagawa-ku, Yokohama 221-0031, JapanTe l : (81) 45-662-1126

Te l : (81) 45-506-7662

Te l : (81) 45-441-9123

Fax: (81) 45-662-1173

Fax: (81) 45-506-7667

Fax: (81) 45-441-1466

URL: http://www.ahr.co.jp/

URL: http://www.cks-ykh.co.jp/

URL: http://www.ite.co.jp/

Overseas Offices
A bu Dhabi OfficeKorea Representative OfficeS ingapore Human Resources Office

P.O. Box 43928, Clock Tower Bldg.,

1358-8, Tal-dong Nam-ku, Ulsan, Korea

10 Anson Road, #03-02, International Plaza,

Floor No. 02 Suite No. 0204

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

Singapore 079903

AI Najda Street, Abu Dhabi, U.A.E.

Fax: (82) 52-256-5723

Te l : (65) 6324-0080

Te l : (971) 2-671-7161
Fax: (971) 2-671-7162

Fax: (65) 6324-0090
M iddle East Headquarters Doha Office
12th Floor, Al-Qassar Tower,T he Hague Representative Office

Beijing Office

Taawon Street,

Parkstraat 83, 2514 JG The Hague,

Room No. 1028, China World Tower No. 1,

West Bay, P.O. Box 20243

The Netherlands

Jianguomenwai Street, Chaoyang District,Doha, Qatar

Te l : (31) 70-385-9453

Beijing, 100004, China

Te l : (974) 4462-2875/2876

Fax: (31) 70-346-3779

Te l : (86) 10-6505-2678

Fax: (974) 4462-2716

Fax: (86) 10-6505-1118
M ilan Representative Office
Jakarta Office

Viale Della Liberazione 16/18, 20124 Milan, Italy

9th Floor, Mid-Plaza Bldg., Jalan Jenderal

Te l : (39) 02-303517-111

Sudirman Kav. 10-11, Jakarta 10220, Indonesia

Fax: (39) 02-303517-35

Te l : (62) 21-570-7579
Fax: (62) 21-570-6276

54 CHIYODA CORPORATION ANNUAL REPORT 2010

The Netherlands

Italy
Korea
Saudi Arabia

Japan

U.S.A.

China
MyanmarIndia

U.A.E.
Qatar

Philippines
Thailand
Malaysia
Singapore
Indonesia

Head Office
Overseas Offices
Major Subsidiaries & Affiliated Companies
BrazilAustralia

Overseas Subsidiaries & Affiliated Companies
C hiyoda Almana Engineering LLC

C hiyoda Oceania Pty Limited

C hiyoda Singapore (Pte) Limited

12th Floor, Al-Qassar Tower,

Level 28, AMP Tower 140 St Georges Terrace,

14 International Business Park Jurong East,

Taawon Street, West Bay, P.O. Box 22961,

Perth WA 6000, Australia

Singapore 609922

Doha, Qatar

Te l : (61) 8-9278-2599

Te l : (65) 6563-3488

Te l : (974) 4407-4660

Fax: (61) 8-9278-2727

Fax: (65) 6567-5231

Fax: (974) 4407-4650
URL: http://larryalam.com/Chiyoda/index.html

URL: http://www.chiyoda.com.sg/
C hiyoda Petrostar Ltd.
3rd Floor, Gulf Center Building,C hiyoda (Thailand) Limited

Chiyoda Corporation (Shanghai)Prince Turki Street, Corniche, Al-Khobar

140/42 ITF Tower II, 20th Floor,

Room 606, UC Tower, No. 500,

P.O. Box 31707 Al-Khobar 31952

Silom Road, Kwaeng Suriyawong,

Fushan Road, PuDong New Area,

The Kingdom of Saudi Arabia

Khet Bangrak, Bangkok 10500, Thailand

Shanghai 200122, China

Te l : (966) 3-864-0839

Te l : (66) 2-231-6441/6442

Te l : (86) 21-6876-1500

Fax: (966) 3-864-0986

Fax: (66) 2-231-6443

Fax: (86) 21-6876-1300
C hiyoda Philippines Corporation

L &T-Chiyoda Limited

Chiyoda do Brasil Representações Ltda.

15~21F Sun Plaza Building 1507

B.P. Estate National Highway No. 8,

Praia de Botafogo, 228 Sala 501-Botafogo

Shaw Boulevard cor. Princeton Street,

Chhani Baroda-391740, Gujarat State, India

CEP 22250-040 Rio de Janeiro-RJ-Brazil

Barangay Wack-Wack

Te l : (91) 265-2771003/2772855

Te l : (55) 21-3738-8280

Mandaluyong City 1555, Philippines

Fax: (91) 265-2774985

Fax: (55) 21-3738-6835

Te l : (63) 2-571-7596

URL: http://www.lntchiyoda.com/

Fax: (63) 2-571-7599
C hiyoda International Corporation

URL: http://www.chiyodaphil.com.ph1177 West Loop South, Suite 680

P T. Chiyoda International Indonesia
9th Floor, Mid-Plaza Bldg., Jalan Jenderal

Houston, TX 77027, U.S.A.

C hiyoda & Public Works Co., Ltd.

Sudirman Kav. 10-11 Jakarta, 10220,

Tel: (1) 713-965-9005

Room 308~309, Sedona Hotel

Indonesia

Fax: (1) 713-965-0075

No. 1, Kaba Aye Pagoda Road,

Te l : (62) 21-570-4693

Yankin Township, Yangon, Myanmar

Fax: (62) 21-573-5723

C hiyoda Malaysia Sdn. Bhd.

Te l : (95) 1-545605

15th Floor, Menara Maxisegar,

Fax: (95) 1-545227

Jalan Pandan Indah 4/2, Pandan Indah,
55100
Kuala Lumpur, Malaysia
Te l : (60) 3-4297-0988
Fax: (60) 3-4297-0800
URL: http://www.chiyoda.com.my/

CHIYODA CORPORATION ANNUAL REPORT 2010 55

Corporate Information(As of March 31, 2010)

Chiyoda Corporation
Head Office12-1, Tsurumichuo 2-chome, Tsurumi-ku,
Yokohama 230-8601, Japan
Tel: (81) 45-521-1231
Fax: (81) 45-503-0200
Established
January 20, 1948

Annual Fiscal Close
March 31
Shareholders’ Meeting
June
Number of Shares per Unit
1,000

Paid-in Capital¥43,396 million

Stock CodeISIN:
JP3528600004
SEDOL 1:6191704 JP

Number of Employees
1,281 (Non-Consolidated)
3,670 (Consolidated)

TSE:

6366

Transfer Agent of Common Stock
Mitsubishi UFJ Trust and Banking
Corporation
1-4-5 Marunouchi, Chiyoda-ku, Tokyo
Authorized Shares
650,000,000
Capital Stock Issued
260,324,529
Number of Shareholders
14,069URL
http://www.chiyoda-corp.com/en/

Organization Chart
Shareholders’ Meeting

Corporate Auditors Committee

Board of Directors
Executive Committee
CSR Division

SQE Division

Operational Auditing Office
Corporate Planning,
Management & FinanceCorporate Planning DivisionCorporate Services & HRM DivisionCorporate Communication Division
Finance Division
Project Management
Administration Division

Technology Planning &Administration Office

Research Institute ofTechnology Innovation & Strategy

PC Planning &Administration Office

Engineering Operation
Division
Process Engineering Division/
Gas & LNG
Process Engineering Division/
Refinery, Petrochemical & New Energy

Mechanical Engineering Division

Procurement Division

Electrical and Control System
Engineering Division

Construction Division

Project Operations
Project Plannning &Administration Office

Domestic Project Division 1
Domestic Project Division 2

Business Managers OfficeInternational Project Division 1

Projects Logistics &Construction

Technology & Engineering

Project Management Service Division
Group Operation DivisionInternational Project Division 2
International Project Division 3
International Project Division 4

Piping and Civil Engineering
Division

Business Development Operation
Business Development
Management Division
Business Development Division 1
Business Development Division 2

Technology Development
Business Operation
Technology Development
Business Planning &Administration Office
Strategic Business Development
Division
Technology Development Division
Green Technology Project Division
Pharmaceutical & Environmental
Project Division(As of July 1, 2010)

56 CHIYODA CORPORATION ANNUAL REPORT 2010

Major Shareholders
Ratio of Number of
Number of
Shares Owned toShares Owned
Aggregate Number of( Thousands of shares)
Shares Issued (%)

Breakdown by Shareholder

Mitsubishi Corporation

86,931

33.53

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

16,857

6.50

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

9,033

3.48

Japan Trustee Services Bank, Ltd. (Trust Account)

8,224

3.17

Mitsubishi UFJ Trust and Banking Corporation

8,032

3.09

The Bank of New York, Treaty JASDAEC Account

4,534

1.75

Japan Trustee Services Bank, Ltd. (Trust Account 9)

3,851

1.48

Financial institutions

JP Morgan Securities Japan Co., Ltd.

2,952

1.13

Securities companies

Tokio Marine & Nichido Fire Insurance Co., Ltd.

2,760

1.06

Other corporations

Meiji Yasuda Life Insurance Co.

2,549

0.98

11.04%

14%

26.48%
21.13%

Total
260,324
thousand

2.69%

38.65%

12.9

22.90
%

Foreign investors and others
Individuals and others

Monthly Stock Price Range on the Tokyo Stock Exchange

(Yen)

(Yen)

24,0003,600
Share Price (left)
VolumeNikkei Stock Average (right)

2,400

16,000

1,200

8,000
(Thousandsof shares)

0

160,000

80,000

2005

2006

2007

2008

2009

2010

0

4 5 6 7 8 9 10 1112 1 2 3 4 5 6 7 8 9 10 1112 1 2 3 4 5 6 7 8 9 10 1112 1 2 3 4 5 6 7 8 9 10 1112 1 2 3 4 5 6 7 8 9 10 1112 1 2 3 4

CHIYODA CORPORATION ANNUAL REPORT 2010 57t12-1, Tsurumichuo 2-chome, Tsurumi-ku,
Yokohama 230-8601, Japan
Tel: (81) 45-521-1231
Fax: (81) 45-503-0200
http:// www.chiyoda-corp.com