Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019

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 Fiscal Year Ended March 31, 2019
May 9, 2019
Company name:
Listing:
Stock code:
URL:
Representative:
Inquiries:TEL:

CHIYODA CORPORATIONFirst Section of the Tokyo Stock Exchange
6366
http://www.chiyodacorp.com/
Masaji Santo, President& CEO
Masaru Akiyama, GM, Accounting Department+81-45-225-7745

Date of general shareholders' meeting:
Dividend payable date:
Supplementary Explanation Material:
Financial Results Presentation:

undecided
Yes
Yes

Annual securities report filing date: undecided-(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated performance for the fiscal year ended March 31, 2019(1) Consolidated operating results(Percentages indicate year-on-year changes)

Net sales
Millions of yen

Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2018
Note: Comprehensive Income:Operating income%

Millions of yen%

Millions of yen%

Millions of yen%

341,952 (33.1)(199,795)－(192,998)－(214,948)－

510,873 (15.4)(12,330)－(10,100)

－

6,445

－

Fiscal year ended March 31, 2019:
Fiscal year ended March 31, 2018:

Net income Fully diluted net
per share income per share
Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2018
Reference: Equity

Profit attributable toowners of parent

Ordinary income(216,488) million yen / (－) %3,878
million yen / (－) %Return on
Equity(ROE)

Ratio of ordinary
Ratio of operating
Income to Total assets income to revenue

Yen

Yen

%

%

%

(830.02)－(441.2)(50.0)(58.4)

24.89

－

4.1

(2.3)

(2.4)

Fiscal year ended March 31, 2019:
Fiscal year ended March 31, 2018:

194 million yen
680 million yen(2) Consolidated financial position
Total assets
As of March 31, 2019
As of March 31, 2018
Reference: Equity

Millions of yen

Net assets
Millions of yen

352,341(59,154)420,337
159,418
Fiscal year ended March 31, 2019:
Fiscal year ended March 31, 2018:

Equity ratio

Net assets per share%(17.1)
37.5(60,114) million
157,557 million

Yen(232.13)608.41Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019(3) Consolidated Cash Flow
Net cash provided by

Investing Activities

Millions of yen

Millions of yen

Millions of yen

Millions of yen(37,941)

778

4,020

68,306(34,115)(1,428)(1,468)

101,767

Fiscal year ended
March 31, 2019
Fiscal year ended
March 31, 2018

Financing Activities

Cash and equivalents,
end of perid

Operating activities

2. Cash dividends
Cash dividends per share
Record dateFiscal year ended
March 31, 2018
Fiscal year ended
March 31, 2019
Fiscal year ending
March 31, 2020
(Forecast)First quarter

SecondquarterThird quarter

Fiscal yearend

AnnualPayment of Payout ratio Dividend on
cash(consolidate) equity ratio
dividends
%

%

1,942

30.1

1.2

0

－

0.00

Yen

Yen

Yen

Yen

Yen Millions of yen

－

－

－

7.50

7.50

－

－

－

0.00

0.00

－

－

－

0.00

0.00

0.00

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2020
(from April 1, 2019 to March 31, 2020)(Percentages indicate year-on-year changes)

Net sales
Fiscal year ending
March 31, 2020

Operating income

Profit attributable toowners of parent

Ordinary income

Net income
per share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

390,000

14.1

12,000－12,000

－

6,000

－

23.17

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

(3) Number of issued shares (common stock)a. Total number of issued shares at the end of the period (including treasury stock)
As of March 31, 2019
260,324,529 shares
As of March 31, 2018260,324,529 sharesb. Number of treasury stock at the end of the period
As of March 31, 2019
1,357,156 shares
As of March 31, 2018
1,356,873 sharesc. Average number of shares during the period
Year ended March 31, 2019258,967,495 sharesYear ended March 31, 2018258,968,865 shares###This report is not reviewed by auditor.
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 otherresults may differ substantially due to a number of factors.
Change of date format
From “March 2019 First Quarter Financial Results”, the date format from Japanese calendar changed to Gregoriancalendar.

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019

Table of Contents for the appendices1.

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

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

Financial Information on Business Performance .................................................................. 4(3)

Outlook................................................................................................................................ 4(4)

Dividend Policy and Current/Next-Period Dividend Payments ............................................. 4(5)

Business Risks .................................................................................................................... 4(6)

Significant events on the ability to continue as a Going Concern ....................................... 4

2.

Basic Concept of Accounting Criteria ......................................................................................... 73.

Consolidated financial statements ............................................................................................. 8

4.

(1)

Consolidated balance sheets .............................................................................................. 8(2)

Consolidated statement of income and comprehensive income ......................................... 10(3)

Consolidated statement of changes in equity ..................................................................... 10(4)Consolidated statement of cash flows ................................................................................ 13(5)

Notes on Consolidated Financial Statements .................................................................... 16

Production, Contracts and Sales.............................................................................................. 171

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019

1. Qualitative Information Related to Consolidated Performance(1) Qualitative Information on Business Performance

Substantial amount of unanticipated additional works occurred in the final phase of construction work of
Cameron Train-1 due to insufficient result of engineering work. In addition, a continuous high turnover ratioof labor caused an ongoing low productivity of the workers. Having made a very strict review of these projects
conditions, similar constrains are expected for completion of Cameron Train-2, -3, and therefore we
recognized as additional costs as the result of throughout risk assessment from the third party perspective
implemented by the new organization “Strategy & Risk Integration Division”.
In Tangghu Project in Indonesia, the project schedule is being impacted by several factors, and requires
significant amount of additional works and costs to complete the project. The client and contractor are undernegotiations on schedule and costs.
Moreover risk evaluation of pending arbitration cases has been revised. Further, strictly reassessment ofpotential risks in overseas and domestic projects are currently in process. Amid these circumstances, theGroup is continuously executing large-scale LNG Projects worldwide; completed 2 trains of Ichthys LNG
Project (Australia) and the 3rd Train of Yamal LNG (Russia). In addition, the Company has been awarded
EPC contract for a new LNG plant project in the U.S. Further the Company has completed front-end
engineering and design work (FEED) for the Qatar expansion project, and implementing FEED andEngineering, Procurement and Construction (EPC) proposal preparation work for Nigeria Train 7 LNG.
In addition, in November 2018 the Company has reviewed some of its structural reforms and growth strategyof the medium-term management plan “Mirai Engineering - A Grand Opportunity for the Future”. This plan
includes future business model and expansion into new markets covering renewable energy and life
sciences, and a digitalization strategy leveraging Big Data and Artificial Intelligence (AI) technology.
On consolidated basis, for the fiscal year ending March 31, 2019, New Orders amounted to 771,559 million
yen (up 156.1% YoY), Backlog to 1,016,356 million yen (up 55.5% YoY) and Revenues to 341,952 million
yen (down 33.1% YoY). Operating loss came to 199,795 million yen (compared with previous year’s
consolidated operating loss of 12,330 million yen), Ordinary loss amounted to 192,998 million yen(compared with previous year’s consolidated ordinary loss of 10,100 million yen) and Loss attributable toowners of parent came down to 214,948 million yen (compared with previous year’s consolidated profit
attribute to owners of parent of 6,445 million yen). Losses are mainly due to increase in incremental
construction costs for Cameron LNG project caused by continuous high turnover ratio of workers, andTangguh LNG Project in Indonesia the project schedule is being impacted by several factors, and requires
significant amount of additional works and costs to complete the project. The client and contractor are undernegotiations on schedule and costs. In addition to risk assessment for project execution, risk evaluation ofpending arbitration cases has been revised.
The summary of activities in the engineering business; reportable segments below:

EnergyLNG Plants / Other Gas Related Work
【Overseas】
Chiyoda is executing EPC work for projects in Australia, the U.S., Russia and Indonesia. The Ichthys
LNG plant (Australia) started production of both trains. The Yamal LNG 3rd train (Russia) was successfullycompleted a year ahead of the contract delivery schedule and accounts for a total production capacity of
16.5 mtpa and also completed FEED work for a 4-Train LNG expansion project in Qatar. Meanwhile, theGroup has been awarded a new LNG plant project in the United States, and is currently executing, FEED
plus EPC proposal preparation work in Nigeria.
In “Other Gas Related Work”, the Group Company in Qatar is engaged in the EPC work of the helium
production facility as well as being engaged in the EPCm (design, procurement and construction
management) work of the modification and revamping projects of the LNG / gas processing plant
constructed by the Company.
【Japan】

2

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019

In Japan renovation and modification projects are underway for previously built LNG-receiving terminals,
and for seismic upgrades of facilities under the Basic Act for National Resilience.
Refinery/Petrochemical/Metal【Overseas】
Overseas, EPC work started for a large-scale ethylene production plant in the Gulf Coast Area, US. A
group company is executing Engineering, Procurement, Construction and Commissioning (EPCC)
activities for a Residue Fluid Catalytic Cracking (RFCC) project in Malaysia. Also in Malaysia, EPC
activities on a petrochemical tank terminal are ongoing, further a group company based in Southeast Asia
is engaged in project management for downstream projects including refinery and petrochemical in Asia.
【Japan】
Domestically, the Group is executing EPC work for renovation of existing refining facilities aiming to
reduce sulphur content in bunkering fuel as per the new regulation which will become effective in 2020
as well as other various revamping / modification work. Further, the Group has completed EPC work
related to high-function chemical products plant, and is executing EPC work for other chemical facilities
and production plant for hydrogenated petroleum resin.
Environment
Pharmaceutical/Biochemistry/General Chemistry【Japan】
The Group has completed EPC work for pharmaceutical production plant and developed cutting edge,
injection production facilities for high-potency pharmacologically active agents and related
pharmaceutical facilities. EPC work in progress for production facilities of middle molecule, Active
Pharmaceutical Ingredients (APIs).
Environment/New Energy/Infrastructure【Overseas】
A Group company has completed new international airports in Bohol, Philippines and Mongolia. Further,
Chiyoda introduced the Chiyoda Thoroughbred 121 (CT - 121) Process to flue gas desulfurization
facilities at four existing coal-fired plants in India; In Dubai, UAE, a demonstration project of a vegetable
growing facility using artificial light was completed last year, and business development activities are
ongoing aiming to introduce commercial facilities elsewhere in the Middle East and Russia.
【Japan】
Chiyoda is executing EPC work for the world's largest Battery Energy Storage System Project in Hokkaido,
flue gas desulfurization facilities at existing coal-fired plants, demonstration facilities for CO2 separation
units, photovoltaic (mega solar) facilities, while factories complying with the latest food hygiene standards
and research facility for food plant have been completed. In the New Energy business field ademonstration plant for producing bio-jet and diesel fuels was completed, and EPC work for the largest
capacity biomass firing plant in Japan is ongoing.
Work is underway on a demonstration project commercializing a hydrogen supply chain, through theAdvanced Hydrogen Energy Chain Association for Technology Development, an organization establishedjointly established with Mitsubishi Corporation, Mitsui & Co., Ltd. and Nippon Yusen (NYK Line).



Digital Technology
The Company is implementing projects using AI technologies to improve plant productivity in a tie-up
agreement with GRID Inc. Under these initiatives, Chiyoda has signed a memorandum of understanding
with Abu Dhabi Gas Liquefaction Co. (UAE) to provide state-of-the-art digital technologies for its LNG
Plant. Further the company has agreed with PT. Donggi-Senoro LNG (Indonesia) on the development ofAI technology to improve the productivity of the LNG plant facilities.

3

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019

Meanwhile, Chiyoda has launched the internal "Target 20" campaign aiming for further utilization of digitaltechnology. Along that target, the Group strives to strengthen competitiveness based on enhanced
operations through digitization in each area of EPC business as well as corporate management practices.

(2) Financial Information on Business PerformanceThis section is not translated.

(3) Outlook

1) Forecast of next Fiscal Year income related items
Consolidated forecast of Fiscal 2019 ending March 2020 is as follows: New orders 550 billion yen, revenue
390 billion yen, operating profit 12 billion yen, ordinary profit 12 billion yen and net profit 6 billion yen. Forex
rate 110 yen / USD.

2) Management policy, business environment and others
The Company decided along the Board of Director meeting on May 9, 2019, a new medium-term
management plan replacing “Mirai Engineering”, initially announced in August 2017 and 1st revised on
November 2018, as well as issuance of preferred shares by third-party allotment to strengthen the financial
position.
For details of the new medium-term management plan, issuance of preferred shares and borrowing of funds
please refer to separate disclosed documents presented on May 9, 2019.

(4) Dividend Policy and Profit Distribution for the current and next period

In the previous medium-term management plan announced in August 2017, the management strongly
recognize the importance of sharing corporate profits to its shareholders. However, due to the current capital
deficit the payout ratio of 30%+ and minimum dividend of 6JPY per share payout cannot be executed.
Taking current severe business environments into consideration, the management deeply regrets to pay out
no dividend in fiscal 2018. In addition, with careful consideration of our business circumstances andperformance there is no dividend plan for FY2019.

(5) Business Risks

Business risks may significantly impact the Chiyoda Group’s business operations and finances. These risks
have the potential to impact investor decision making. Recognizing these risks, the Group has implemented
risk mitigation plans to minimize consequences when such events occur.
The risks below are those we recognize as of the date of the fiscal year ended.
(a) Changes in the Business Environment; Economic, Social and Political Factors
Various factors may require that modifications be made to clients’ investment plans, project suspension,delay or review. These factors include changes in global economic, social and political environments,
protective trade, economic sanctions, and diplomatic relations, changes in home country energy policies
and commodity prices such as oil, LNG and metal resources prices: All the factors may affect the Groupearnings. Changes in economic, social and political environments for clients, joint venture partners,
subcontractors, suppliers and service providers could affect the Group’s project execution plans, profitability
and, ultimately, its financial strength.
The Group monitors global economic and social trends for a potential impact on business and strives toreduce such risk through rigorous contract negotiations. Due diligence is executed for subcontractors,
vendors and service providers and remedial action in the supply chain is taken if necessary.

(b) Earthquakes and Natural Disasters, Terrorism, Wars and Other Force Majeure Events
Force Majeure events such as earthquakes, natural disasters by heavy rains or floods due to global climatechanges, terrorism and wars have the potential to materially impact project sites or business locations.
Disruption issues may include personnel life crisis, delays in equipment and materials delivery and/or
suspension of field work.
The Group puts life and safety first and has the Crisis Management Unit, to compile and analyze information
to prevent human suffering or harm. The Group has established, and is reinforcing, the crisis management
system, which advocates the employment of professional security advisors in the regions requiring particularattention. Additionally, the Group maintains the risk management system to rapidly react to various
situations and to respond to an emergency immediately, including consulting with the clients and/or the4Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019

parties concerned to minimize force majeure risk.
The Group has formulated a Business Continuity Plan (BCP) for unexpected events including as a massive
earthquake to act smoothly in the initial stage and execute priority tasks. In that way, the Group has been
prepared to ensure business continuity by conducting emergency response training.
(c) Fluctuations in Equipment and Material Costs
Under certain contracts, the Group is exposed to material/equipment cost fluctuation risk due to the timedifference between plant or material quotation and purchase. Specifically the price of steel, which constitutes
a major part of plant construction, could be severely impacted by a rise in commodity prices such as coaland iron ore. Future market prices of copper, nickel, aluminum and zinc are similarly unpredictable.
The Group avoids such risks (or minimizes the impact) by diversifying supply sources, placing early orders,maintaining alliances with major vendors/suppliers and identifying market trends.
(d) Possible Shortages of Construction Workers/Equipment and Materials
A project may experience a delay and a cost impact if sufficient construction labor, equipment and materials
or other resources required for a project cannot be sufficiently procured.
The Group avoids such risk (or minimizes the impact) by applying diverse construction methods including
modular construction, in the countries where materials and/or adequately qualified labor are scarce or insevere climate areas, and by establishing communication and collaboration with reliable subcontractors,
vendors and suppliers. If a plant’s construction is suspended due to labor disputes and the like, the Group
minimizes risk by taking appropriate action in cooperation with clients and the local authorities.
(e) Plant Accidents
Safety risk, the consequences of which could be serious for the Group’s operating capability, is inherent in
the construction industry.
Safety is of paramount importance to the Group, reinforced by the maxim “Safety is the Core Value”.
Through comprehensive Risk Identification and Management procedures, reinforced by close collaboration
with clients, designers, subcontractors and vendors, all the risks are identified at every stage of projectdelivery, from feasibility through design and construction, and measures to negate or mitigate the identified
risks are implemented.
(f) Exchange Rate Fluctuations
Some construction projects may involve payment settlements (subcontractors, vendors and suppliers) in acurrency that does not correspond with the currency received from the client for the work. In such cases,
exchange rate fluctuations can have an impact on earnings. The Group avoids/minimizes exchange raterisk by reserving construction payments against such risk in multiple foreign currencies and by entering into
exchange rate forward contracts.
(g) Compliance-related Risk
The Group’s global operations are required to comply with local laws, acts and regulations in the respective
countries and regions where its head office, subsidiaries, business offices and construction execution sites
are located, both at home and abroad. Penalties or suspicious action resulting from non-compliance could
have a serious impact on a project’s execution or the business operation of the Group.
To prevent and/or minimize such compliance-related risk, the Group runs training courses for employees
including assembled induction and e-learning. Those are intended for them to understand and strictly
observe the updated laws, acts, regulations or rules related to its business operations including those forhuman rights and anti-bribery. The Group also makes every effort to comprehend the present trend of
stakeholders including the authorities concerned and clients, both at home and abroad. Additionally, theGroup has incorporated compliance response in its operating processes by establishing a Compliance
Committee consisting of CCO (Chief Compliance Officer) as a chairman and all Division Directors, andGroup Company Liaison Meeting on Compliance consisting of CCO as a chairman and Group company
representatives.
(h) Information Security Risk
The Group takes great care in managing information obtained from clients, subcontractors, equipment andmaterials suppliers and other service providers. The information is necessary in the performance of its
business. The Group also possesses confidential information related to technologies, sales, and otherbusinesses. Many core corporate operations and business transactions are conducted by making full useof the IT systems at global subsidiaries. The Group operations are subject to system failure, information
leakage and loss of important business information due to infection by computer viruses, external

5

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019unauthorized access and cyber-attacks. The Group, including the main subsidiaries and global
headquarters, holds an ISMS (Information Security Management System) certificate and performs
competent information security management which includes training, auditing, and defensive andminimizing measures under its business continuity plan.
(i) Business Investment Risk
The Group makes business investment to pursue the growth strategy under MTMP such as theestablishment of a new company or the purchase of the existing company. The Group is exposed to several
risks, such as changes in the business environment, lower earnings obtained than planned, a downturn inbusiness and incurring extra costs. Prior to deciding on business investment, the Group does assess thefeasibility through our standards and rules. After making an investment, the Group regularly monitors the
progress in the business and provide various types of support as necessary, to avoid or minimize any loss.
(j) Risk related to the Ichthys LNG Project
An arbitration process was filed between the JKC Australia LNG Pty Ltd (a company established by a joint
venture between JGC Corporation, KBR and Chiyoda Corporation which was awarded a contract for theconstruction of a combined cycle power plant for the Ichthys liquefied natural gas (LNG) project in the
Northern Territory and a subcontractor. As of now, the arbitration case between the customer andsubcontractors are pending. Once updates on arbitral proceedings are available the Company will be makean announcement in due course.
① Dispute with customers
There are several outstanding issues with the client concerning change in scope of work and associatedadditional cost, adjustment of contract price etc, and some of those issues are under negotiation andarbitration..
②
Dispute with subcontractors
There is a dispute with the subcontractor consortium consisting of General Electric Company, General
Electric International Inc., UGL Engineering Pty Ltd and CH2M Hill Australia Pty Limited, who awarded alump sum contract from JKC. Arbitration is under processing for this dispute.
(6) Significant events on the ability to continue as a Going Concern
In the full year consolidated financial results, the Chiyoda Group has an Operating loss of 199,795 million
yen, Ordinary loss of 192,998 million yen and Loss attributable to owners of parent of 214,948 million yen
due to significantly increased construction cost for ongoing LNG projects, notably the Cameron LNG Projectin Louisiana in the U.S. Due to the above, the Company expects deterioration of cash flow and new financing
will be required during this fiscal year and new funding will be needed early in next fiscal year. Under thiscircumstance, the Company recognized events and conditions which may cause substantial doubts about
the Company’s ability to continue as a going concern.
Under these circumstances the medium-term management plan “Mirai Engineering” was revisited andvarious measurements taken, in addition, in order to secure necessary fund for its operation, the Company
has consistent communications with its major shareholder Mitsubishi Corporation and other stakeholders.
As a result, for substantial doubts are eliminated by the reached agreement to raise funds; as stated in “3.
Consolidated Financial Statements and Main Notes” (3) consolidated financial statements 5. Notes on
Consolidated Financial Statements.
Based on the above, under the going concern assumption, the Company is viewed as continuing in businessfor the foreseeable future, as of filling date. For details please refer to (3) consolidated financial statements
5. Notes on Consolidated Financial Statements “Notes on the premise of a going concern”.

6Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019

2. Basic Concept of Accounting Criteria

The Chiyoda Group presents its consolidated financial statements based on Japanese accounting criteria
in consideration for comparison with those for the previous fiscal term as well as comparison with the othercompanies' financial statements. The Group will follow international accounting criteria in due course after
examining the trend of Japanese engineering contractors.

7

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019

3. Consolidated quarterly financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2018

As of March 31, 2019

AssetsCurrent assets [abstract]
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts-CNS
Securities
Costs on uncompleted construction contractsCNS

96,00869,45776,884

68,611

7,999－

15,916

7,494

Accounts receivable-other

41,96765,945

Jointly controlled assets of joint venture-CA

131,374

110,967

Other-CA

5,563

5,707

Allowance for doubtful accounts-CA-by group(1,245)Current assets

374,470(1,254)

326,929

13,504

13,524(7,493)

Non-current assets [abstract]
Property, plant and equipment [abstract]
Buildings and structures
Accumulated depreciation-buildings andBuildings and structures, net

6,010(8,063)

Machinery, equipment and vehicles

522

512

(349)
172

(381)

6,142

6,404

(5,321)820(5,507)

4,952

4,952

structures

Accumulated depreciation-machinery,equipment and vehicles
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation-tools, furnitureand fixtures
Tools, furniture and fixtures, net
LandConstruction in progress
Property, plant and equipment
Intangible assets

5,461

130

897

115

272

12,071

11,714

5,718

5,298

Investments and other assets [abstract]
Investment securities

7,681

6,393

Retirement benefit asset

203

5

Deferred tax assets-IOA

11,908

701

Other-IOA

8,468

1,473

(185)

(174)

Allowance for doubtful accounts-IOA-by
group
Investments and other assets

28,077

Non-current assets
Assets8

8,398

45,86725,411

420,337

352,341

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019

(Millions of yen)
As of March 31, 2018

As of March 31, 2019

Liabilities
Current liabilities [abstract]
Notes payable, accounts payable forconstruction contracts-CNS
Current portion of long-term loans payable
Income taxes payable
Advances received on uncompleted
construction contracts-CNS
Provision for warranties for completed
construction
Provision for loss on construction contracts
Provision for bonuses
Provision for business structure

147,654

175,277

－

118

894

708

76,294

122,252

419

372

3,288

67,637

3,887

3,011

－

1,825

improvement-CL
Other-CL

15,40821,300Current liabilities

247,847

392,505

10,00015,870Retirement benefit liability
Provision for treatment of PCB waste-NCL

1,176
344

1,546
267

Other-NCL

1,550

1,305

Non-current liabilities [abstract]Long-term loans payableNon-current liabilities

13,071

18,989260,918

411,495

Capital stock
Capital surplus

43,396
37,112Retained earnings
Treasury shares

77,024(1,434)

43,396
37,112(139,956)(1,435)

Liabilities
Net assets [abstract]
Shareholders' equity [abstract]

Shareholders' equity

156,099

Valuation and translation adjustments[abstract]
Valuation difference on available-for-salesecurities

64

Deferred gains or losses on hedges
Foreign currency translation adjustment(1,778)2,159

Remeasurements of defined benefit plans

1,013

Valuation and translation adjustments

1,458

Non-controlling interests
Net assets
Liabilities and net assets

9(60,882)
(5)

(50)
(102)
926
767

1,861

960

159,418(59,154)420,337

352,341

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019(2) Consolidated statement of income and comprehensive income(Consolidated statement of income)(Millions of yen)
Fiscal year ended
March 31, 2018

Fiscal year ended
March 31, 2019

Net sales of completed construction contracts-CNS

510,873

341,952

Cost of sales of completed construction contracts-CNS

502,255

523,101

8,618(181,148)

Gross profit (loss) on completed construction contractsCNS
Selling, general and administrative expenses

20,948Operating profit (loss)(12,330)

Non-operating income [abstract]

18,647(199,795)Interest income-NOI

2,245

Dividend income-NOI

340

425

680

194

－

3,638

Share of profit of entities accounted for using equity
method-NOI
Foreign exchange gains-NOI
Other-NOI

2,877

299

226

3,566

7,362

Interest expenses-NOE

212

238

Foreign exchange losses-NOE

667－

Commission expenses - NOE

208

57

Other-NOE

247

269

1,336

565

(10,100)(192,998)

1,732

979

12,441－Gain on sales of investment securities-EI

202－

Other-EI

590－

14,967

979

Provision for business structure improvement-EL

－

1,825

Loss on retirement of non-current assets-EL－

335

Non-operating income
Non-operating expenses [abstract]

Non-operating expenses
Ordinary profit (loss)
Extraordinary income [abstract]
Gain on sales of shares of subsidiaries andassociates-EI
Reversal of provision for loss on business of
subsidiaries and associates-EI

Extraordinary income
Extraordinary losses [abstract]

－

2,161

Profit (loss) before income taxes

Extraordinary losses

4,867(194,181)

Income taxes-current(5,475)

11,090

Income taxes-deferred

3,741

10,580

Income taxes(1,734)

21,670

Profit (loss) (after amendment dated 2014-03-28)

6,602(215,852)

Profit (loss) attributable to non-controlling interests

156

(903)

Profit (loss) attributable to owners of parent

6,445

10

(214,948)

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019

(Millions of yen)
Fiscal year ended
March 31, 2018
Profit (loss) (after amendment dated 2014-03-28)
Other comprehensive income [abstract]
Valuation difference on available-for-salesecurities, net of tax-OCI
Deferred gains or losses on hedges, net of tax-

Fiscal year ended
March 31, 2019

6,602

(215,852)

(315)

(69)

(2,276)

OCI
Foreign currency translation adjustment, net oftax-OCI
Re-measurements of defined benefit plans, netof tax-OCI
Share of other comprehensive income ofentities accounted for using equity method-OCI
Other comprehensive income(1,001)(1,348)

420

(87)

450

(850)

(2,723)Comprehensive income
Comprehensive income attributable to [abstract]
Comprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

11

1,719

(636)

3,878

(216,488)

3,775(215,638)

103

(849)

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019(3) Consolidated statement of changes in equity
Previous consolidated fiscal year (April 1, 2017- March 31, 2018)
This section is not translated.

Current consolidated fiscal year (April 1, 2018-March 31, 2019)
This section is not translated.

12

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019(4) Consolidated statement of cash flows(Millions of yen)
Fiscal year ended
March 31, 2018

Cash flows from operating activities
Profit (loss) before income taxes

Fiscal year ended
March 31, 2019

4,867

Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in provision for loss on construction
contracts
Increase (decrease) in provision for bonuses

3,545
327
(218)
102

Increase (decrease) in provision for loss on business of
subsidiaries and associates
Increase (decrease) in retirement benefit liability

Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using equity
method Loss (gain) on sales of investment securities

Loss on retirement of non-current assets
Decrease (increase) in notes and accounts receivabletrade
Decrease (increase) in costs on uncompleted construction
contracts
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in advances received on uncompleted
construction contracts
Decrease (increase) in accounts receivable-other
Decrease (increase) in jointly controlled asset of joint

1,825(12,777)

－
63

212

(3,303)477(680)

SubtotalInterest and dividend income received
Interest expenses paid
Net cash provided by (used in) operating activities
Cash flows from investing activities [abstract]
Net decrease (increase) in time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets

13

238
(980)
(194)
－

(979)

(19,550)

7,908

8,289

8,149

(10,420)

28,180(26,992)(23,097)(1,431)(1,689)－(8,014)335

46,21020,055(34,114)(45,116)(34,115)(37,941)362(2,044)

3(1,611)

1,954
(205)
(1,750)

Income taxes (paid) refund(874)(1,732)

31,920ventureOther, net

(52)

－

(202)

Loss (gain) on sales of shares of subsidiaries andassociates

1

64,40944(2,585)Interest and dividend income

2,816
41

(25)

732

Increase (decrease) in provision for business structure
improvement(194,181)

2,028
(550)

1,158
(215)
6,230

1,150
(642)

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019

Purchase of investment securities
Proceeds from sales and redemption of investment
securities
Proceeds from liquidation of subsidiaries and associates
Proceeds from sales of shares of subsidiaries resulting inchange in scope of consolidation
Payments of loans receivableCollection of loans receivable

(338)
896

1,791

－

138

1,684

－

(4,229)(2)
59－(1,428)778

757

Other, net

5Net cash provided by (used in) investing activities

14

(109)

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019

(Millions of yen)
Fiscal year ended
March 31, 2018
Cash flows from financing activities [abstract]
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Other, net

149－

10,000(10,004)(1,552)

6,220
(231)
(1,93)(29)(61)

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents(1,468)(108)(37,121)

Cash and cash equivalents

138,889

Cash and cash equivalents

101,767

15

Fiscal year ended
March 31, 2019

4,020

(317)

(33,461)
101,767
68,306

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019(5) Notes on Consolidated Financial Statements(Notes on Assumptions for a Going Concern)
Not Applicable

Change of Accounting Policy
The Company has applied IFRS 9, “Financial Instruments” and 15, “Revenue from Contracts with
Customers”, from the first quarter of the fiscal year ending March 31, 2019. The effects this change will
have on business performance are minor.
Segment Information
This section is not translatedInformation per share
This section is not translatedSignificant subsequent events
On May 9, 2019, Chiyoda Corporation (the "Company") at its meeting of the Board of Directors, approved
Its financing plan including planned Third-Party allotment and borrowings. For details on the outline pleaserefer to “Notice Regarding Issuance of Preferred Shares by Third-Party Allotment, Borrowing of Funds andPartial Amendment to Articles of Incorporation“, released on May 9, 2019.

16

Chiyoda Corporation (6366)
Consolidated Financial Results for the Ended March 31, 2019

Production, Contracts and Sales(Millions of yen)
Apr. 1, 2018 － Mar 31, 2019

Apr. 1, 2017 － Mar 31, 2018
New
contracts(ratio)Net sales(ratio)Backlog ofcontracts(ratio)New
contracts(ratio)Net sales(ratio)Backlog ofcontracts(ratio)297,914507,573653,516

768,199

338,592

1,016,356

98.9%

99.4%

100.0%

99.6%

99.0%

100.0%

123,283

361,559

352,164

409,075

188,844544,082

40.9%

70.8%

53.9%

53.0%

55.2%

53.5%

2,666

11,238

4,406

12,344

2,708

13,405

0.9%

2.2%

0.7%

1.6%

0.8%

1.3%

52,62352,741

155,031

227,083

60,191

311,087

17.5%

10.3%

23.7%

29.4%

17.6%

30.6%

Pharmaceutical/Biochemistry/
Chemical

35,07533,671

36,117

21,961

28,83624,012

11.6%

6.6%

5.5%

2.9%

8.4%

2.4%

Environment/New
Energy/Infrastructure

69,77336,11796,51090,04548,354

116,734

23.2%

7.1%

14.8%

11.7%

14.2%

11.5%

14,491

12,245

9,286

7,689

9,656

7,034

4.8%

2.4%

1.4%

1.0%

2.8%

0.7%

3,300

3,300

-

3,360

3,360

-

1.1%

0.6%

-

0.4%

1.0%

-

301,214510,873653,516

771,559

341,952

1,016,356

100.0%

100.0%Engineering
LNG Plant
Gas
Development/Processing/Receiving
Refinery/Petrochemical/Metal

OthersOther Business
Total
Domestic
Overseas100.0%

100.0%

100.0%

100.0%

151,733

109,795

163,210

196,535

120,400

217,526

50.4%

21.5%

25.0%

25.5%

35.2%

21.4%

149,480

401,078

490,306

575,023

221,552

798,830

49.6%

78.5%

75.0%

74.5%

64.8%

78.6%

Note 1:The backlog of contracts for the ended March 31, 2019 includes a decrease due to changes in construction
contracts acquired in prior fiscal years, and an adjustment due to foreign exchange translation adjustments.

Note 2:The total amount of the above table does not include consumption tax.

17