Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

The presentation was held in Japanese.

20 May 2022

This document is a translation/summary

IR, PR & Sustainability Advanced Section

for reference only.

Corporate Services Department
Chiyoda Corporation

Summary of a Q&A session following the Presentationof the Financial Results for Fiscal Year Ending March 31, 2022
This is a summary of a Q&A session following the presentation (telephone conference) of Chiyoda
Corporation’s (Chiyoda) financial results for fiscal year ending March 31, 2022, released on May 10,2022.
Question
1Answer

Gross profit
Although the full year forecast was In the global environment field, gross profit increased
up year on year (YoY), what factor YoY due to steady progress in life science projects.
resulted in a lower gross profit?

Conversely, in the energy field, gross profit decreased
YoY due to material price increases and transportation
cost escalation from COVID-19 and the geopoliticalcrisis in Ukraine.
Steady progress in the global environment field
increased gross profit compared to the previous fiscal
year and cost escalation impacts in the energy field
impeded achieving the full year forecast.

2Countermeasures
surgingagainstmaterial/transportation

costs
What countermeasures is Chiyoda Although the price of materials such as copper andimplementing

againstsurging nickel is rapidly rising, the vast majority of equipment

material and transportation costs?

and materials were procured prior to the current priceescalation.
Chiyoda monitors and analyzes market trends andplaces orders at the most appropriate time during longproject periods.
COVID-19 cost and schedule impacts have a ‘Force1Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/enQuestion

AnswerMajeure’ contract provision.

3Equity ratio
Equity ratio is down to 4%. Will The decrease in equity ratio is due to Chiyoda’s
there be any change in the over proactive measures to settle negative legacy issues
20% equity ratio goal in the affecting solid growth.
Revitalization Plan?

Improving financial strength is our priority and Chiyoda
continuestostrengthen

itscapitalbasebyaccumulating stable profits and aligning businessstrategies.
4

Currency exchange fluctuation
How does a weak yen affect Currency exchange fluctuations are neutral because
financial results?

5risks are hedged by exchange reservations.

FY2022 new order forecasts
Please expand upon the FY2022 Of the 300 billion JPY new order forecast, 200 billion
new order forecast of 300 billion JPY is overseas, including the NFE project in Qatar,
JPY.

and 100 billion JPY is domestic.
NFE LNG is a massive project with considerable future
possibilities and the FY2022 new order figure isconsidered conservative.

6Order intake policy
What is Chiyoda’s order intake Three huge overseas LNG projects are ongoing and by
policy in terms of resources?

focusing on our resource capacity and projectschedules, Chiyoda reluctantly declined the Cameron
LNG expansion project in the USA (previouslyconstructed by Chiyoda).

7

Business environment
How does Chiyoda view the current It is increasingly necessity, especially in Europe, tobusiness environment and new procure energy from outside Russia due to theorderforecasts

followinggeopolitical crisis in Ukraine?

the geopolitical crisis in Ukraine.
LNG is an essential form of energy and investment isexpected to continue.

2Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

Question

AnswerConstruction of large-scale LNG plants takes many
years and client investment decisions are deliberated
in detail.
New LNG projects are planned in Qatar, the USA andAustralia

and

Chiyodareceives

regularproject

consultation requests from clients.
Our engineering expertise and track record is anadvantage for new LNG projects in Qatar and weimplement stringent and comprehensive risk evaluationand management procedures when we receive
potential orders.
8Projects in the USA
WhatisChiyoda’sstrategy

fornewprospective

projects in the USA?

order Minimizing construction risk in countries such as theLNG USA and Australia is key.
Chiyoda carefully selects local joint venture partners
and implements appropriate construction strategies,
such as modularization.
We completed a project ahead of schedule in the USA
in 2021.

9

Sustainability Committee
Pleasegive

Sustainability
mentionedindetailsofthe The most important aspect for the committee is climate

Committee

as change action and net zero carbon emissions by 2050.

theOverview’ on Page 4.

‘Business For

engineering

companies

suchasChiyoda,contributing to reducing greenhouse gas (GHG)
emissions in scope 3 is key, considering GHG
emissions in scopes 1 and 2 are minor.
The committee also addresses environment, resource,social and economic issues, such as supply chains,diversity, healthy and productivity management.
A carbon-free business promotion committee also
addresses businesses in fields such as hydrogen andammonia.

3Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

Question
10Answer

Increase of the number of sharesauthorized to be issued
What is the purpose of increasing The purpose is to diversify future financing methods
thetotalauthorized

numberoftoissued

beshares according to Chiyoda’s growth strategies.
as However, we have no specific plans to increase capitalannounced in the ‘Notice of Partial at present.
Change of Articles of Incorporation’ Chiyoda continues to reinforce its revenue base,
dated 10 May 2022?

secure capital and improve corporate value by securing
profits

inexisting

fieldswhile

expandingnewbusinesses such as renewable energy and life
sciences, and we continue to transform our businessportfolio in line with our medium-term management
plan: ‘Revitalization for the Future’.

-EndPlease submit inquiries to:
IR, PR & Sustainability Advanced Section, Corporate Services Department
Tel. +81-45-225-7734

Note: Some additions and corrections have been made to simplify the content for readers. Any
projections included in these materials are based solely on information available at the time thispresentation was prepared. It is possible that actual results may vary significantly from the projections
due to a number of risk factors such as economic conditions. The results projected here should not
be construed in any way as being guaranteed by the Company. Investors are recommended not todepend solely on these projections for making investment decisions.

4