Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2022

Abridged Translation:
The report is not audited and this translation is an abridged version prepared based on the statutory format
in Japan for reference purpose only. If there is any discrepancy between this translation and the original
Japanese version, the Japanese shall prevail.

Consolidated Financial Results
for the Three Months Ended June 30, 2022
August 1, 2022
Company name:
Listing:
Stock code:
URL:
Representative:
Inquiries:TEL:

CHIYODA CORPORATIONTokyo Stock Exchange
6366
http://www.chiyodacorp.com/
Masakazu Sakakida, Chairman of the Board, President& CEO
Takatsugu Ukai, General Manager, Accounting Department+81-45-225-7281

Scheduled date to file Quarterly Report:
Quarterly Supplementary Explanation Material:
Quarterly Financial Results Presentation:

August 10, 2022
Yes
Yes
(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated performance for the three months ended June 30, 2022
(1) Consolidated operating results(Percentages indicate year-on-year changes)

Net sales

Operating income

Millions of yen

For the three months
ended June 30, 2022
For the three months
ended June 30, 2021
Note: Comprehensive Income:

Profit attributable toowners of parent

Ordinary income%

Millions of yen%

Millions of yen%

Millions of yen

75,741 (5.9)

3,769

7.5

3,526

(0.3)

2,190

-

80,4793,506 (33.8)

3,537 (27.0)(17,211)-22.8

the three months ended June 30, 2022:
the three months ended June 30, 2021:%

4,015 million yen / (－)%
(20,324) million yen / (－)%

Net income Fully diluted net
per share income per share
For the three months
ended June 30, 2022
For the three months
ended June 30, 2021

Yen

Yen

6.43

2.23

(68.49)-(2) Consolidated financial position
Total assets

Net assets

Millions of yen

As of June 30, 2022
As of March 31, 2022
Reference: Equity

Equity ratio

Millions of yen

365,412395,396
as of June 30, 2022:
as of March 31, 2022:%

19,52915,761
19,404 million yen
15,654 million yen

5.3
4.0

2. Cash dividends
Cash dividends per share
Record date

First quarter

Second quarter

Third quarter

Fiscal year-end

Annual

Yen

Yen

Yen

Yen

Yen

Fiscal year ended
March 31, 2022

－

－

－

0.00

0.00

Fiscal year ending
March 31, 2023

－
－

－

－

－

Fiscal year ending
March 31, 2023 (Forecast)Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2022

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2023
(from April 1, 2022 to March 31, 2023)(Percentages indicate year-on-year changes)

Net sales
Millions of yen

Operating income%

Millions of yen%

Profit attributable toowners of parent

Ordinary income

Net income
per share

Millions of yen%

Millions of yen%

Yen

18,00057.5

11,500－36.30

Fiscal year ending
500,000
60.7
20,000 89.7
March 31, 2023
Note: Revision to the latest forecast announcement 2022: None

4. Others(1) Changes in Significant Subsidiaries during the Period(Changes in specified subsidiaries accompanying changes in the scope of consolidation): None(2)

Adoption of Specified Accounting Methods for the Preparationof Quarterly Consolidated Financial Statements: None

(3) Changes in Accounting Policies and Accounting Estimates / Restatements
a. Changes in accounting policies due to revisions of accounting standards, etc.:
b. Changes in accounting policies other than a. above:c. Changes in accounting estimates:
d. Restatements:

Yes
None
None
None

(4) Number of issued shares (common stock)a. Total number of issued shares at the end of the period (including treasury stock)
As of June 30, 2022
260,324,529 shares
As of March 31, 2022
260,324,529 sharesb. Number of treasury stock at the end of the period
As of June 30, 2022
1,357,916 shares
As of March 31, 2022
1,357,776 sharesc. Average number of shares during the period
For the three months ended June 30, 2022
258,966,613 shares
For the three months ended June 30, 2021
258,966,783 shares*Presentation of Implementation Status of Quarterly Review Procedure
The review procedure of quarterly financial statements based on the Financial Instruments and Exchange Law has not been
completed at the time of the disclosure of these Consolidated Financial Statements.

*Proper use of earnings forecasts, and other special directions
The forward-looking statements, including earnings forecasts, contained in these materials are based on information
currently available to the Company and on certain assumptions deemed to be reasonable. Actual business and other results
may differ substantially due to a number of factors.

Dividend Status of Class A SharesClass A Share
Cash dividends per share
Record date
First quarter Second quarter Third quarter Fiscal year-end
Yen
Yen
Yen
Yen
Fiscal year ended
March 31, 2022
Fiscal year ending
March 31, 2023
Fiscal year ending
March 31, 2023 (Forecast)

-

-

-

-

-

Annual
Yen

0.00

0.00

-

-

Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2022

Table of Contents for the appendices

1.

2.

3.

Qualitative Information Related to Consolidated Performance ................................................... 2(1)

Qualitative Information on Business Performance .............................................................. 2(2)

Financial Information on Business Performance ................................................................. 5(3)

Consolidated Financial Forecasts of the Fiscal Year........................................................... 5

Consolidated quarterly financial statements ............................................................................... 6(1)

Consolidated balance sheets .............................................................................................. 6(2)

Consolidated statement of income and comprehensive income .......................................... 8

Production, Contracts and Sales .............................................................................................. 10

1

Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2022

1. Qualitative Information Related to Consolidated Performance(1) Qualitative Information on Business Performance
The future of the global economy in the first quarter of the fiscal year remains volatile, due to impacts fromCOVID-19, the geopolitical crisis in Ukraine, surging raw material costs (including oil), rapid inflation and aweakening yen.
Under these circumstances, the business environment in which we operate is undergoing significant
changes. While the transition to carbon neutrality and decarbonization is accelerating in response to climatechange, balancing this transition and ensuring a stable energy supply has become a new challenge.
The Group’s medium-term management plan ‘Revitalization for the Future’ addresses these businessenvironment challenges. We continue to invest in our existing businesses, mainly based on liquefied naturalgas (LNG) which is increasing in importance as a resource that contributes to a stable energy supply andthe energy transition. We also continue to strengthen new businesses in growth fields such as renewableenergy, hydrogen, carbon cycling, energy management and life sciences, and leverage digitaltransformation to add value to our business model.
To accelerate initiatives for our ‘Revitalization for the Future’ vision, the Group declared carbon neutrality
goals on April 1, 2022 and will continue contributing to net-zero by 2050 by combining our engineering
capabilities with innovative digital technology.
We create ‘new engineering value’ by reinforcing existing businesses and accelerating new ones, aiming to
rejuvenate our business portfolio, ensure a stable income base, achieve sustainable growth and further
enhance enterprise value.
On consolidated basis, for the 1st quarter of the fiscal year ending March 31, 2023, New Orders amounted
to 20,602 million yen (down 3.5% YoY), Revenues amounted to 75,741 million yen (down 5.9% YoY) andBacklog amounted to 1,367,674 million yen (up 2.8% from last FY). Operating Income is 3,769 million yen(up 7.5% YoY) and Ordinary income is 3,526 million yen (down 0.3% YoY). An increase of income taxes
and others resulted in a profit attributable to the owners of the parent of 2,190 million yen (a loss of 17,211
million yen was recorded in the 1st quarter of last FY).
The effects of COVID-19 vary according from project to project and although its influence on particular
projects has been evaluated where applicable, most are progressing as usual, with some realizing cost
reductions and increased profits. Further deterioration or a prolonging of the geopolitical crisis in the Ukraine
could also adversely affect the Group’s business performance and we will continue to monitor and address
any effects on current projects. The figures provided for ongoing projects in the 1 st quarter of this fiscal year
have been estimated following reasonable assessments of applicable impacts. Revenue and Cost ofCompleted Work reflect total construction cost, assessments in the calculation of construction progress.
Further information regarding reportable engineering business segments is presented below.
 Energy
LNG / Gas
【Overseas】
Chiyoda is executing the engineering, procurement and construction (EPC) phase of LNG plants in Qatar,
the USA and Indonesia. In Qatar, the EPC phase for the North Field East (NFE) project, an expansion offour LNG trains with capacities of eight million metric tons per annum each, is underway and construction
has commenced. In the USA, the Golden Pass LNG project is also in the EPC phase and construction iscontinuing. In Indonesia, construction of the third train of the Tangghu LNG Expansion project is progressing
toward completion. In other gas related work, a group company in Qatar is engaged in engineering projects
to renovate and repair LNG/gas processing plants.
【Japan】
We are in the EPC phase of projects to reinforce, modify and repair existing LNG terminals, previously

2Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2022

constructed by Chiyoda, and construct new gas supply facilities for thermal power plants.
Refinery/Petrochemical
In Japan, we are working to improve the competitiveness of oil refineries, upgrading equipment, examining
measures for energy saving/carbon neutrality and examining compliance with the Basic Act for National
Resilience. In the petrochemical field, we are executing a new functional materials project.
 Environment
Pharmaceutical/Biochemistry/General Chemistry【Pharmaceutical/Biochemistry】
The EPC phase is underway on a recombinant protein vaccine production facility expansion project, theaddition of ancillary facilities for SHIONOGI & CO. Ltd and the EPC phase for a biopharmaceuticalsubstance manufacturing plant is ongoing. Pharmira Co. Ltd (Pharmira), a joint venture including Chiyoda
and led by Shionogi Pharma Co. Ltd commenced business on April 1, 2022. Pharmira conducts contractdevelopment and manufactures active pharmaceutical ingredients (API’s) and intermediates, using
Continuous Manufacturing (CM) technology. Pharmira’s one-stop API’s and intermediates manufacturing
scope ranges from API’s manufacturing process development and investigational new drugs manufacturing
to commercial scale manufacturing. Chiyoda applies its innovative CM technology and reinforces life sciencefields through the horizontal development of our technologies.
【General Chemistry】
We are realizing carbon recycling as part of a collaboration project with industry, government and academia
to research and develop CO2 capture technology, using CO2 as a raw material to produce para-xylene (PX).
We are also conducting basic engineering for a client’s waste plastic recycling business.
We are strengthening our capabilities in indoor vertical farming and promoting the development ofcommercial facilities.
Environment/New Energy/Infrastructure【Environment】
We are installing flue gas desulfurization (FGD) equipment in coal-fired power plants in India in response totightening environmental regulations and Chiyoda’s thoroughbred 121 (CT-121) FGD process has been
installed in a number of plants.
In Japan, we are partially remodeling and providing operational support for a demonstration project toseparate, recover and store CO2 (carbon capture and storage (CCS)) from thermal power plant fuel gas
and are in the EPC phase for flue gas desulfurization equipment installation in a coal-fired power plant.
In the carbon capture and utilization (CCU) field, we are collaborating with Blue Planet Systems Corporationand Mitsubishi Corporation to develop and commercialize technology to use the CO2 in exhaust gas in the
manufacture of aggregates as the raw material for concrete.
Technology development of CO2 separation and recovery for large scale natural gas fired power plantturbines using domestic solid sorbent material is ongoing under a New Energy and Industrial Technology
Development Organization Green Innovation fund program.
【New Energy】
Chiyoda is executing the EPC phases for a photovoltaic (mega solar) facility and Japan’s largest biomass
power plant using wood pellets as fuel, and we were awarded a maintenance contract for the world’s largest
battery energy storage plant, in addition to its EPC execution. We are continuing to reinforce our energy
management business for energy storage facilities to efficiently utilize renewable energy and virtual power
plants (VPP).
【Infrastructure】
Chiyoda, awarded the contract solitary, is executing the MSP project in Indonesia, the world’s largest single
manufacturing line copper smelting plant and construction has commenced. We are also executing the EPC

3

Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2022

phase of a polypropylene polymerization catalyst manufacturing plant in Japan.

Our hydrogen business (hydrogen/ammonia) is presented below.
Chiyoda is in detailed discussions with third parties to construct international SPERA Hydrogen TM value
chains, including the Port of Rotterdam Authority, Koole Terminals and Mitsubishi Corporation to use thePort of Rotterdam in The Netherlands as the gateway for importing hydrogen into Europe on a commercial
scale. Discussions are also ongoing with Mitsubishi Corporation and Singaporean companies, including
Sembcorp Industries, an integrated utilities and urban development firm, regarding studies to realize a cleanhydrogen supply chain in Singapore. Chiyoda has also been awarded a grant from the Singaporean
government to promote a business/academia collaboration program utilizing SPERA Hydrogen TM. In Japan,
as an associate member of the Advanced Hydrogen Energy Chain Association for Technology Development(AHEAD), Chiyoda manufactures methylcyclohexane (MCH) in Brunei Darussalam as part of a projectsubsidized by the New Energy and Industrial Technology Development Organization (NEDO) and supplies
MCH to ENEOS Corporation using chemical tankers for their ongoing demonstration project. Chiyoda is amanaging board member of the Japan Hydrogen Association and accelerates a hydrogen-based society
through the social implementation of hydrogen projects.
In the ammonia field, Chiyoda is leading a NEDO Green Innovation Fund initiative to develop independent
ammonia synthesis technologies to reduce ammonia production costs and are conducting studies onammonia receiving and hydrogen fuel supply facilities in Japan.
Please refer to 4. ‘Production, Contracts and Sales’ for further details of New Contracts, Net Sales andContract Backlog, by segment.

Further information regarding our digital technology business is presented below.
The Group is accelerating company-wide digital transformation (DX), cultivating digital expertise as a DX
foundation in the development of a digital culture and is pursuing the following three initiatives:(a)
Project Execution DX
We are sequentially implementing systems required to apply Advanced Work Packaging (AWP) on ongoingprojects to enhance our EPC execution management capabilities. As part of PlantStream Inc, a joint venturewith Arent Inc, we are developing, and introducing to plant owners and EPC contractors around the world,a revolutionary system that drastically reduces the number of space design processes required in basic
plant design, enabling faster creation of 3D models.
(b)
Corporate Management DX
We are leveraging digital technologies to develop the remote working environment, improving resource
planning and management and deploying robotic process automation to improve administrative efficiency.
(c)
DX BusinessWe are promoting EFEXISTM, a plant operations optimization solution that combines our engineeringexpertise, digital AI technology and Mirai Fusion (digital platform solution for industrial equipment and plants
in development with Cognite and Mitsubishi Corporation), for domestic and international marketing. We are
expanding the EFEXISTM lineup and have developed ‘O&M Mother’ to streamline facility maintenance,
combining Chiyoda’s advanced diagnostic and analysis technology with IoT and cloud technology.

4Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2022

(2) Financial Information on Business Performance(Assets)
Total assets decreased by 29,983 million yen from the end of the last fiscal year, with a decrease ofaccounts receivable – other of 50,535 million yen and others. Costs on construction contracts in progressincreased by 5,963 million yen, notes receivable, accounts receivable from completed construction
contracts and contract assets by 3,584 million yen, cash and deposits by 2,827 million yen and jointly
controlled assets of joint ventures by 1,974 million yen.
(Liabilities)
Total liabilities decreased by 33,751 million yen from the end of last fiscal year, with a decrease ofaccounts payable – other of 26,771 million yen, notes payable, accounts payable for construction
contracts of 5,467 million yen, current portion of long-term borrowings of 5,032 million yen and others.
Contract liabilities increased by 5,128 million yen.
(Net assets)
Total Net Assets is 19,529 million yen, with an increase in accumulated other comprehensive income
by recording deferred gains or losses on hedges and retained earnings by recording a profit attributableto owners of parent.

(3) Consolidated Financial Forecasts of the Fiscal Year
There is no change from the consolidated financial forecasts for the fiscal year announced on May 10,
2022.

5

Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2022

2. Consolidated quarterly financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2022
AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivablefrom completed construction
contracts, and contract assets
Costs on construction contracts inprogress
Accounts receivable - other
Jointly controlled assets of joint
ventureOther
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant andequipment
Intangible assets
Investments and other assets
Investment securities
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

6

As of June 30, 2022

68,79571,62340,43844,023

18,52924,493

83,24632,711

141,438

143,412

21,731(1,498)372,682

26,914(1,522)
341,655

4,700
5,100
1,236

4,711
5,094
1,269

11,038

11,075

4,335

4,050

5,511
633
129
1,084
(18)
7,340
22,714395,396

6,965
452
146
1,084
(18)
8,631
23,757
365,412Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2022

(Millions of yen)
As of March 31, 2022
Liabilities
Current liabilities
Notes payable, accounts payable forconstruction contracts
Current portion of long-termborrowings
Accounts payable - other
Income taxes payable
Contract liabilities
Provision for warranties for completed
construction
Provision for loss on construction
contracts
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Provisions
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive
incomeValuation difference on available-forsale securities
Deferred gains or losses on hedges
Foreign currency translation
adjustment
Remeasurements of defined benefit
plans
Total accumulated othercomprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

7

As of June 30, 2022

96,084

90,616

20,621

15,58844,022
978143,431

17,250972
148,560

3,348

1,692

34,81534,812

3,211
4,160
350,675

1,511
8,398
319,404

25,000
533
239
773
2,413
28,960379,635

20,000
2,723
239
807
2,709
26,479345,883

15,014142(1,142)(849)
13,16515,014
142
800
(849)
15,107

83

69

1,656

6,697

(6)

(3,192)

755

722

2,489

4,296

106
15,761
395,396

124
19,529365,412Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2022

(2) Consolidated statement of income and comprehensive income(Consolidated statement of income)(Millions of yen)Three months ended
June 30, 2021

Net sales of completed construction
contracts
Cost of sales of completed construction
contracts
Gross profit on completed construction
contracts
Selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted forusing equity method
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of investment securities
Total extraordinary income
Extraordinary losses
Loss on valuation of investment
securities
Project related loss based onnegotiations with customers
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controllinginterests
Profit (loss) attributable to owners of parent

8

Three months ended
June 30, 2022

80,47975,741

74,28969,214

6,189

6,526

2,682

2,756

3,506

3,769

139
47
109
43
339

153
10
－
36
201

215

215

17

142

－
76
309
3,537

34
52
444
3,526

－
－

72
72

－

18

20,374－

20,374(16,836)354
25
380(17,217)

18
3,580
1,297
87
1,384
2,195

(6)

5

(17,211)2,190

Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2022

(Consolidated statement of comprehensive
income)(Millions of yen)Three months ended
June 30, 2021

Profit (loss)
Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit
plans, net of tax
Share of other comprehensive income ofentities accounted for using equity
methodTotal other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable tonon-controlling interests

9

Three months ended
June 30, 2022

(17,217)

2,195

(30)

(13)

(51)
(2,985)

5,040(3,236)

(40)

(33)

0

62

(3,107)(20,324)

1,819
4,015

(20,318)

3,997

(6)

18

Chiyoda Corporation (6366)
Consolidated Financial Results for the three months Ended June 30, 2022

3.

Production, Contracts and Sales(Millions of yen)

Apr. 1, 2021－Jun. 30, 2021
Segments

Apr. 1, 2022－Jun. 30, 2022

New
Backlog ofNew
Backlog of
Net Sales
Net Sales
Contracts
Contracts Contracts
Contracts(Ratio)(Ratio)(Ratio)(Ratio)(Ratio)(Ratio)21,192(99.2%)

80,315 1,072,981(99.8%) (100.0%)

20,446(99.3%)

75,585 1,367,674(99.8%) (100.0%)(1) LNG Plant

4,962(23.2%)

47,504(59.0%)

919,635(85.7%)

2,468(12.0%)

42,444(56.1%)

951,202(69.6%)(2) Gas Related Work205
(1.0%)

1,068(1.3%)

4,972(0.4%)

127(0.6%)

1,053(1.4%)

2,081(0.2%)(3) Refinery/Petrochemical

10,490(49.1%)

16,409(20.4%)

44,917(4.2%)

6,773(32.9%)

5,765(7.6%)

29,168(2.1%)

Chemical

3,400(15.9%)

7,358(9.2%)

39,303
(3.7%)

4,501(21.8%)

6,747(8.9%)

48,017(3.5%)

Global(5) Environment/
Environment
New Energy/Infrastructure

1,434(6.7%)

7,187(8.9%)

62,033(5.8%)

5,266(25.6%)

18,645(24.6%)

334,215(24.4%)

698(3.3%)

786(1.0%)

2,118(0.2%)

1,309(6.4%)

928(1.2%)

2,989(0.2%)

163(0.8%)

163(0.2%)(

155(0.7%)

155(0.2%)(

1.

Engineering

Energy(4) Pharmaceutical/Biochemistry/(6) Others
2.

Other Business

Total

Domestic-)-)

21,35680,479 1,072,981
20,60275,741 1,367,674(100.0%) (100.0%) (100.0%) (100.0%) (100.0%) (100.0%)
15,647(73.3%)

23,129(28.7%)

126,753(11.8%)

16,968(82.4%)

16,186(21.4%)

100,700(7.4%)

5,708
57,349 946,228
3,633
59,554 1,266,974(26.7%) (71.3%)(88.2%) (17.6%) (78.6%)(92.6%)
Note1: The backlog of contracts for the three months includes an increase / decrease due to changes inconstruction contracts acquired in prior fiscal years, and an increase / decrease due to foreignexchange translation adjustments.
Note2: Part of segment description and definition of energy field and global environment field breakdown in
Engineering Business was changed from the 2nd quarter of the last fiscal year. In the above table, thechange is reflected in the 1st quarter of the last fiscal year. There is no change in segment report.
Overseas10