Translation

August 5, 2010

Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2011
Company name: CHIYODA CORPORATION
Listing:First Section of the Tokyo Stock Exchange
Stock code:
6366
URL:
http://www.chiyoda-corp.com/
Representative: Takashi Kubota, President & CEO
Inquiries:
Nobuo Sekita, General Manager, Accounting Department
TEL: +81-45-506-9410 (from overseas)
Scheduled date to file Quarterly Report: August 13, 2010
(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated performance for the first quarter of the fiscal year ending March 31,
2011 (from April 1, 2010 to June 30, 2010)(1) Consolidated operating results (cumulative)
Net sales
Millions of yen(Percentages indicate year-on-year changes.)

Operating income% Millions of yen

Ordinary income% Millions of yen

1Q ended June 30, 2010

53,475 (35.3)

2,909

1Q ended June 30, 2009

82,677 (27.7)

2,870 112.1

Net income per share

1.4

Net income% Millions of yen%

1,272 (66.9)

1,308 (37.2)

3,848

2,081

17.5

16.6

Fully diluted net
income per share

YenYen1Q ended June 30, 2010

5.05

-1Q ended June 30, 2009

8.03

8.03

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of June 30, 2010

310,391

149,43048.0

574.39As of March 31, 2010

328,174

149,25345.3

573.61

Reference: Equity

As of June 30, 2010: 148,882 million yen–1–

As of March 31, 2010: 148,683 million yen

2.

Cash dividends
Cash dividends per share
Record date

First quarter

Second quarter

Third quarter

Fiscal year-endYenYenYen
Fiscal year ended
March 31, 2010
Fiscal year ending
March 31, 2011
Fiscal year ending
March 31, 2011
(Forecast)
Note: Revision of the forecast in the first quarter of the fiscal year ending March 31, 2010: None

3.

AnnualYenYen

3.50

3.50

5.00

5.00

Consolidated earnings forecasts for the fiscal year ending March 31, 2011 (from April
1, 2010 to March 31, 2011)(Percentages indicate year-on-year changes.)
Net sales

Operating income Ordinary income

Net income pershareNet income

Millions ofyen%Millions ofyen%Millionsof yen%

Millions ofyen%

Yen

2Q ending September30, 2010 (cumulative)

120,000(27.1)

3,500-

2,500-

2,000-

7.72

Fiscal year ending
March 31, 2011

240,000(23.3)

6,000 252.5

6,500 34.4

4,00035.4

15.43

Note: Revision of the forecasts in the first quarter of the fiscal year ending March 31, 2010: Yes

4.

Others(1) Significant changes in subsidiaries during the period (changes in specified subsidiaries resulting in
the change in scope of consolidation): None
(2) Application of simplified accounting as well as specific accounting for preparing the quarterly
consolidated financial statements: None
(3) Changes in accounting policies, procedures, and methods of presentation for preparing the quarterlyconsolidated financial statements (changes described in the section of “Changes in significant
matters forming the basis of preparing the quarterly consolidated financial statements”)
a. Changes due to revisions to accounting standards: Yes
b. Changes due to other reasons: None–2–

(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, 2010
260,324,529 shares
As of March 31, 2010
260,324,529 sharesb. Number of treasury stock at the end of the period
As of June 30, 2010
1,125,760 shares
As of March 31, 2010
1,117,239 sharesc. Average number of shares during the period (cumulative from the beginning of the fiscal year)
For the first quarter of the fiscal year ending March 31, 2011259,220,391 shares
For the first quarter of the fiscal year ended March 31, 2010
259,332,534 shares* Proper use of earnings forecasts, and other special directions
1. The forward-looking statements, including earnings forecasts, contained in these materials arebased on information currently available to the Company and on certain assumptions deemed tobe reasonable. Actual business and other results may differ substantially due to a number offactors.
2. Commencing with the current fiscal year, the “Accounting Standard for Quarterly FinancialReporting” (ASBJ [Accounting Standards Board of Japan] Statement No. 12) and the “Guidanceon Accounting Standard for Quarterly Financial Reporting” (ASBJ Guidance No. 14) areapplied. Also, quarterly consolidated financial statements are prepared in accordance with the“Regulation for Quarterly Consolidated Financial Statements.”–3–5.

Qualitative Information related to Consolidated Performance(1) Analysis Results
During the first quarter of the current consolidated fiscal year, the business environment
surrounding the Chiyoda group shows, on one hand, that large scale projects are beginning tomaterialize against a background of expanding future demand for petroleum and gas but, on theother hand, the group is exposed to ever intensifying competition from the Korean andEuropean contractors.
Amid these conditions, the Chiyoda group continued to focus on sales activities for projects
that will allow the group to leverage its technological advantages while, at the same time,
continuing to diligently execute its existing projects including the construction of LNG(liquefied natural gas) Trains 6 and 7 for Qatargas and construction of an LNG plant in Papua
New Guinea.
The consolidated new contracts for the first quarter of the current fiscal year was 19,618
million yen (a 63.9% decrease year on year), consolidated contract backlog was 482,259
million yen (an increase of 21.9% year on year). Our consolidated revenue for the quarter
was 53,475 million yen (a 35.3% decrease year on year), the operating income was 2,909
million yen (an increase of 1.4 % year on year), the ordinary income was 1,272 million yen (a66.9% decrease year on year). The net income for the quarter was 1,308 million yen (a 37.2%decrease year on year).
Results by Business Segment(Natural Gas, Electric Power)
The group continued to execute its existing overseas EPC(Engineering/Procurement/Construction) contracts for an LNG plant in Papua New Guinea andfor LNG/Gas processing plants in Qatar as well as several basic design and feasibility study
contracts, including a basic design contract for a floating LNG plant in Brazil. We have also
been engaged in an EPCm (Engineering/Procurement/Construction management) contracts inQatar, which involves relatively small-scale remodeling and/or renovation of an existing
LNG/Gas processing plant through a long-term service contract that was awarded to our local
subsidiary. We are also currently working towards providing the same types of services for
LNG/Gas processing plants that we have constructed for other clients in the country.
We were awarded several feasibility study contracts within Japan involving remodeling ofexisting facilities, while continuing to execute existing contracts including three for theconstruction of LNG receiving terminals in Niigata and Okayama prefectures.
(Petroleum, Petrochemicals, Gas Chemicals)
The Chiyoda group directed its concerted efforts outside of Japan toward oil refinery projects
in the Middle East and the South East Asia regions. We engaged ourselves in diligently
executing the EPC project for a coker unit in Saudi Arabia, which was awarded to us last year,
as well as the basic design for a desulfurization plant in Singapore. We aim to drive ourglobal operations by strengthening the group companies through execution of these projects.
On the domestic front, the trend for refinery restructuring is accelerating, with project being
undertaken for such works as reinforcing heavy oil cracking capacities and facilities integration
and/or demolition, which follow the law enacted last year entitled as Sophisticated Methods ofEnergy Supply Structures for enhancement of energy supply systems. Against this background,
we were awarded feasibility study contracts and remodeling projects for existing facilities withthe purpose of enhancing competitiveness and energy conservation. The projects to connect
industrial complexes and the construction of an RFCC (Residue Fluid Catalytic Cracking) unit
progressed on schedule.
(General Chemicals, Industrial Machinery, Environment, and Other)
We focused our efforts in the general chemicals, industrial machinery and environment sectors
on sales activities in renewable energy projects, such as photovoltaic and solar heat generations
and low-carbon technologies including lithium ion batteries for environmentally-friendlyautomobiles. In addition, we also focused our efforts in the field of electronics materials,–4–which is growing on the strength of increasing demands in emerging economies.
We have worked aggressively toward responding to an increasing number of capital
investment projects in the high potency API (activated pharmaceutical ingredient) field,
typified by antibody and anti-cancer medicines.
(Note) See Page10 for more information about segment New Orders, Revenues, and Contract
Backlog.

–5–6.

Consolidated quarterly financial statements(1) Consolidated balance sheets(Millions of yen)
As of June 30, 2010

As of March 31, 2010
(Summary)

31,98043,002

50,80751,31890,841

96,841

13,447

7,283

62,60069,917

23,83722,357(2)(2)

273,512290,719

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts
Short-term investment securities
Costs on uncompleted construction
contracts
Jointly controlled assets of joint venture
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net

7,956

8,042

Land

11,938

11,938Other, net

1,359

1,468

Total property, plant and equipment

21,255

21,450

5,004

5,142

Investment securities

7,656

7,855

Other

3,295

3,339

Allowance for doubtful accounts

(333)

(333)

Total investments and other assets

10,618

10,86136,87837,454

310,391

328,174

Intangible assets
Investments and other assets

Total noncurrent assets
Total assets–6–(Millions of yen)
As of June 30, 2010

As of March 31, 2010
(Summary)

82,59089,523Liabilities
Current liabilities
Notes payable, accounts payable forconstruction contracts
Current portion of long-term loans payable

44

Income taxes payableAdvances received on uncompleted
construction contracts
Provision for warranties for completed
construction

282

4,675

42,605

48,168

4,454

4,486

Provision for loss on construction contracts

2,885

4,427

Provision for bonuses

1,670

3,252

Other

12,972

11,421

Total current liabilities

147,466

165,960

Long-term loans payable

10,171

10,000

Provision

2,420

2,428

903

532

13,495

12,960160,961

178,921

Capital stock

43,39643,396

Capital surplus

37,112

37,112Retained earnings

71,16070,759Noncurrent liabilities

Other
Total noncurrent liabilitiesTotal liabilities
Net assets
Shareholders' equity

Treasury stock(1,222)(1,215)

Total shareholders' equity

150,446

150,053

Valuation and translation adjustments
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

(108)

102

(213)

(156)

Foreign currency translation adjustment(1,242)(1,315)

Total valuation and translation adjustments(1,564)(1,369)548

569

149,430

149,253

310,391

328,174

Minority interests
Total net assets
Total liabilities and net assets–7–(2) Consolidated statement of income(Millions of yen)First quarter ended June 30, 2009
(From April 1, 2009
to June 30, 2009)First quarter ended June 30, 2010
(From April 1, 2010
to June 30, 2010)

Net sales of completed construction contracts

82,67753,475

Cost of sales of completed construction contracts

76,82147,366Gross profit on completed construction contracts

5,856

6,109

Selling, general and administrative expenses

2,985

3,199

Operating income

2,870

2,909

Interest income

348

156

Dividends income

51

51

Equity in earnings of affiliates

89

9Real estate rent35

33

Foreign exchange gains

489-Other69

150

1,083402

61

62

Foreign exchange losses

-

1,933

Rent expenses on real estates

2625

Other

17

17

Total non-operating expenses

105

2,039

3,848

1,272

Non-operating income

Total non-operating income
Non-operating expenses
Interest expenses

Ordinary income
Extraordinary income
Surrender value of insurance-

109

Total extraordinary income

-

109

-

146

-

146

Income before income taxes and minority
interests

3,848

1,235

Income taxes-current

2,081

101

Income taxes-deferred

(345)

(153)

Total income taxes

1,735

(51)

Income before minority interests-

1,287Minority interests in income (loss)

30

(20)

2,081

1,308

Extraordinary loss
Loss on adjustment for accounting standard
for asset retirement obligation
Total extraordinary losses

Net income–8–(3) Consolidated statement of cash flows(Millions of yen)First quarter ended June 30, 2009
(From April 1, 2009
to June 30, 2009)First quarter ended June 30, 2010
(From April 1, 2010
to June 30, 2010)

3,848

1,235

Depreciation and amortization

507

525

Interest and dividends income
Decrease (increase) in notes and accounts
receivable-trade
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 jointly controlled assetof joint venture

(399)

(207)

(3,201)546(3,977)(6,162)(3,565)(7,220)602(5,583)

3,049

7,316

Other, net(914)(1,881)

Subtotal(4,052)(11,431)

192

91

Net cash provided by (used in) operating
activities
Income before income taxes and minority
interests

Interest and dividends income received
Interest expenses paid

(64)(61)(5,060)(4,686)(8,984)(16,087)

Purchase of property, plant and equipment

(227)

(166)

Purchase of intangible assets

(248)

(198)

Other, net

(26)

(16)

(502)

(381)

-171

Income taxes paid
Net cash provided by (used in) operating
activities
Net cash provided by (used in) investment
activities

Net cash provided by (used in) investment
activities
Net cash provided by (used in) financing
activities
Proceeds from long-term loans payable
Proceeds from issuance of common stock

7-(1,678)(809)

Cash dividends paid to minority shareholders

(7)

(9)

Other, net

(9)

(10)

(1,688)

(658)

308

102

(10,867)(17,025)

135,536

139,790290-

124,959

122,765

Cash dividends paid

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
Cash and cash equivalents at beginning ofperiod
Increase in cash and cash equivalents fromnewly consolidated subsidiary
Cash and cash equivalents at end of period

–9–

7.

Production, Contracts and Sales (Consolidated)
Millions of Yen
1Q FY2010
Apr. 1, 2010 —Jun. 30, 2010
RevenuesAmt%

New contracts
Amt%

Backlog of contracts
Amt%

Business Segment
Engineering
LNG plants..................................
Gas and power utilities ...............
Gas chemicals ............................
Petroleum and petrochemicals ...
General chemicals........................
Industrial machinery .....................
Environment and other ...............
Total Engineering

3,763
1,123
55
6,706
3,410
1,386
1,614
18,060

19.2
5.7
0.3
34.2
17.4
7.1
8.2
92.1

18,997
12,48628
11,130
3,161
5,930
393
52,127

35.5
23.4
0.1
20.8
5.9
11.1
0.7
97.5

263,061
111,336611
50,173
16,21817,307
22,846
481,554

54.6
23.1
0.1
10.4
3.4
3.6
4.7
99.9

Other...........................................

1,557

7.9

1,348

2.5

704

0.1

Domestic.....................................
Overseas ....................................
Total ...........................................

13,8695,748
19,618

70.7
29.3
100.0

26,52826,94653,475

49.6
50.4
100.0

156,154
326,104
482,259

32.4
67.6
100.0

Millions of Yen
1Q FY2009
Apr. 1, 2009 —Jun. 30, 2009
Net salesAmt%

New contracts
Amt%Backlog of contracts
Amt%

Business Segment
Engineering
LNG plants..................................
Gas and power utilities ...............
Gas chemicals ............................
Petroleum and petrochemicals ...
General chemicals........................
Industrial machinery .....................
Environment and other ...............
Total Engineering

2,135
3,791
19
40,538
5,017
239
1,366
53,108

3.9
7.0
0.0
74.7
9.3
0.5
2.5
97.9

30,85914,465
926,123
6,244
195
3,706
81,604

37.3
17.5
0.0
31.6
7.6
0.2
4.5
98.7

107,426
157,994855
97,931
19,735
1,832
8,727
394,502

27.2
39.9
0.2
24.8
5.0
0.5
2.2
99.8

Other...........................................

1,161

2.1

1,073

1.3

962

0.2

Domestic.....................................
Overseas ....................................
Total ...........................................

24,69929,571
54,270

45.5
54.5
100.0

35,44947,22882,677

42.9
57.1
100.0

204,847
190,617395,465

51.8
48.2
100.0

Note: The backlog of contracts for the three months ended July 30, 2010 includes a decrease due tochanges in construction contracts acquired in prior fiscal years, an increase due to adjustments in
new contract amounts, and an increase due to foreign exchange translation adjustments.

– 10 –