CHIYODA CORPORATION
Consolidated Financial Results
for the Six-Month Period Ended September 30, 2003

This document has been prepared as a guide to non-Japanese investors and contains forward-looking
statements that are based on managements’ estimates, assumptions and projections at the time of
publication. A number of factors could cause actual results to differ materially from expectations. This
document is a translation of excerpts taken from the Japanese language original. All numbers are rounded
down to the nearest unit in accordance with standard Japanese practice. Please be advised that theCompany cannot accept responsibility for investment decisions made based on the information containedin this report.

Summary of Financial Statements(Consolidated)
for the Six-Month Period Ended September 30, 2003
Listed Exchanges
Head Office
Stock CodeInquiries
Telephone
Date of the Meeting of the Board of Directors
Concerning Consolidated Settlementof Year-E
ear-End Accounts
U.S. GAAP Accounting Principles

Tokyo
Kanagawa, Japan
6366
Kazuo Tokunaga, Director, Accounting Department+81 45 506-9410
November 13, 2003
Not adopted

Consolidated Business Results
for the Six-Month Period Ended September 30, 2003

1) Consolidated Business Results

Net Sales ..................................................
Operating Profit
Profit........................................
Ordinary Profit .........................................
Net Profit for Six-Month Period ................
Net Profit per Share (¥(¥) ............................
Fully Diluted Net
Net Profit per Share (¥(¥) ......

Apr. 1, 2003 –Sept. 30, 2003
Change(%)

Millions of Yen
Yen
Apr. 1, 2002 –Sept. 30, 2003
Change(%)

88,679(27.9)
2,495(142.3
3,011
(84.6
2,162
(12.8)
11.68
11.40

69,344
1,029)
1,631)
2,479
13.38
13.36

(3.2)
–
–
–

Apr. 1, 2002 –Mar. 31, 2003
Change(%)

166,367(1,548)(2,393)
1,999
10.79
10.77

–
–
–
–

(Notes)(1)Gain from investments in subsidiaries and affiliates accounted for by the equity method:
Six-month period ended September 30, 2003:
171 million yen
Six-month period ended September 30, 2002:
818 million yen
Year ended March 31, 2003:
1,000 million yen(2)
Average number of outstanding shares (consolidated) during the period:
Six-month period ended September 30, 2003:
185,140,984 shares
Six-month period ended September 30, 2002:
185,348,769 sharesYear ended March 31, 2003:
185,293,208 shares(3)
Changes to accounting principles:
None(4)
Percentages for construction contracts, operating profit, ordinary profit, and net profit represent year-onyear changes.

2) Changes in Consolidated Financial Position
Apr. 1, 2002 –Sep. 30, 2002

Yen
Millions of YenApr. 1, 2001 –Sep. 30, 2001

April 1, 2001 –Mar. 31, 2002

138,063
18,715
13.6
101.11

134,500
17,12712.7
92.42

120,297
16,66913.9
90.01

Total Assets ............................................. ....................
Shareholders’Shareholders’ Equity ............................... ....................
Equity Ratio (%) ...................................... ....................
Shareholders’....................
Shareholders’ Equity Per Share (¥).........
(¥)(Notes)Outstanding shares (consolidated) at the end of the period:
Six-month period ended September 30, 2003:
Six-month period ended September 30, 2002:
Year ended March 31, 2001:

185,098,165 shares
185,321,760 shares
185,199,189 shares23) Consolidated Cash FlowsNet cash provided by (used in) operating activities ......
Net cash provided by (used(used in)in) investing activities.......
activities
Net cash provided by (used(used in)in) financing activities ......
Cash and cash equivalents at end of period
period..................

Apr. 1, 2003 –Sep. 30, 2003

Yen
Millions of YenApr. 1, 2002 –Sep. 30, 2002

April 1, 2002 –Mar. 31, 2003

(3,378)(673)(241)
31,145

5,103(289)(4,591)
38,828

6,939(873)(9,544)34,9404) Consolidated Subsidiaries and Affiliates Accounted for by the Equity Method
Number of consolidated subsidiaries:
Number of non-consolidated subsidiaries accounted for by the equity method:
Number of affiliates accounted for by the equity method:

21065) Changes in the Scope of Consolidation and Companies Accounted for by the Equity
MethodConsolidated subsidiaries:
Companies accounted for by the equity method:(Newly included)(Excluded)(Newly included)(Excluded)

0
3
0
2

Consolidated Results Forecast
for the Year Ending March 31, 2004
Millions of Yen
Yen
Apr. 1, 2003 – Mar. 31, 2004

Net Sales ...............................................................................................
Ordinary Profit ......................................................................................
Net Profit ..............................................................................................

200,000
5,000
4,100

(Note)
Projected net income per share for the year ending March 31, 2004:

22.15 yen

Figures less than ¥1 million are omitted. Refer to attached materials on page 15 for assumptions on the forecast
above and related matters.

3(1) State of the GroupThe Chiyoda Group of Companies consists of the parent company, 21 subsidiaries, and 6 equity
method affiliates. As a group of engineering companies, the Group provides customers with the mosteffective solutions for their needs, and bases its business upon its function as solutions provider. By
combining and deploying the resources and expertise of each era, group company, and conducting
operations as a single unit, the Group is able to flexibly meet the needs of each region and its
customers. The Group’s business is divided into Engineering Businesses and Other Businesses, and
the Group’s structure is outlined below.
Chiyoda Customers

Chiyoda Corporation
Engineering, procurement
construction, andcommissioning
Engineering, Construction & Maintenance*1 Chiyoda Kosho Co., Ltd.
Plant engineering, construction, and maintenance ofenergy and chemical plants*1 Chiyoda Techno Ace Co., Ltd.
Engineering and construction of pharmaceuticalfactories, laboratories, and research centers*1 Chiyoda Keiso Co., Ltd.
Electrical and instrumentation engineering,equipment supply, installation and maintenanceConsulting*1 U-Tech Consulting Co., Ltd.
Consulting for industrial and social, regional
development

Advanced Engineering*1 Chiyoda Advanced Solutions Corporation
Computer aided engineering analysis, plant life cycle
engineering and risk management, utilization of
space environment, etc.

Regional Businesses*1 Chiyoda Singapore (Pte) Limited*1 Chiyoda International Corporation (USA)*1 PT. Chiyoda International Indonesia*1 Chiyoda (Thailand) Limited*1 Chiyoda Malaysia Sdn. Bhd.
*1 Chiyoda Nigeria Limited*1 Chiyoda & Public Works Co., Ltd. (Myanmar)*1 C&E Corporation (Philippines)*1 Chiyoda International Limited (UK)
*2 Chiyoda Petrostar Ltd. (Saudi Arabia)*2 L&T Chiyoda Ltd. (India)

Other businesses

Finance, Accounting, Tax*1 Arrow Business Consulting Corporation
Consulting services for finance and accounting

Airfreight and Spare Parts Supply*1 Arrowhead International Corporation
Travel and air cargo agent, spare parts supply

Information System Development*2 IT Engineering Limited
IT solutions and software development

Human Resources Staffing and Training*2 Arrow Mates Co., Ltd.
Staffing of human resources

Overseas Accounting and Finance*1 Chiyoda Asia Pacific (Pte) Limited (Singapore)Consulting on accounting and finance*1： Consolidated subsidiary*2： Affiliated company accounted for by
the equity method
Direct Client Orders
Contracted Business, Entrusted
Businesses4(2) Management Policies
1. Basic Management Policies
The Group bases its corporate activities on earning the trust and empathy of its customers together
with their satisfaction.
Corporate Philosophy
As an integrated engineering entity, Chiyoda is to contribute to the progressof society and to the growth of its business through the sound and unbiased
application of state-of-the-art technologies.

Management Policies• Commit to building a firm foundation of trust with customers
経営理念• Provide high quality services•総合エンジニアリング企業として、英知を結集し研鑚された技術
ExpandGroup
operations
through useof a cross-function of
総合エンジニアリング企業として英知を結集し研鑚された技術
each company capabilities

駆使して、事業の発展を図り社会の進歩に貢駆使して 事業の発展を図り社会の進歩に貢Quality management policy

Occupational healthand safety policy

Environmental policy

Information security policy

Code of business conduct

Medium- and Long-Term Business Strategy
Project Super X• Complete the New Restructuring Plan as early as possible.
• Build a foundation for a business that can ensure ample returns toshareholders, contributions to society, and enhancement of employee
benefits.

Mid/long-term strategies

Objectives

1 Building long-term relationship1)
2 with customers
2) Promote Plant Lifecycle
Engineering
3)
3 Stabilize profitability4) Strengthen competitiveness45) Human asset development and
5 proper deployment

1) Increase customer satisfaction level2) Continual improvement in quality
management system
3) Technology strengthening andbroadening i-PLANT21®
4) Enhance corporate management
system5) Expand use of overseas low costengineering center
6) Career development program andsuccess support

Client Satisfaction

Priorities
1) Secure sufficient earnings
2) Implement selective and focused business programsand deploy personnel appropriately
3) Eliminate deficit projects

5

The Group’s New Restructuring Plan, which runs though the fiscal year ending March 31, 2006, wasapproved in fiscal 2001 and is currently in progress. Of the objectives laid out in the New
Restructuring Plan, those dealing with financial restructuring, reduction of personnel and fixed costs,
review of business sectors, and re-examination of Group companies were accomplished by the endof March, 2002, and objectives dealing achieving positive profitability in terms of operating,ordinary, and net profit on schedule with the fiscal close on March 31, 2003.
In order to achieve the objectives of the New Restructuring Plan as early as possible, the Grouplaunched the Project Super X program, beginning in April 2001. Project Super X dealt not only withearly achievement of New Restructuring Plan objectives, but also with strengthening all aspects ofGroup operations, including sales, project execution, management, finance, and human resources,
and cultivating a new business model. These efforts will create the foundation upon which the Groupwill be able to meet the expectations of stockholders, contribute to the community, and provide
fulfilling benefits for its employees, and the Group places utmost importance upon this priority.
Within the specific priority, the mid-to-long-term management strategy is set as seen below, andexecutives and employees have united in their efforts to achieve the Group objectives. In executing
the plan, besides setting priority goals for each strategic theme, developing action plans andmanaging its progress, we introduced the balanced scorecard method, which is used to integrate eachstrategic theme. The balance scorecard enables management to maintain overall control by keeping
them aware of progress among the various strategic themes, which results in higher management
quality.
1) Building long-term relationships with customers [Customer Viewpoint]
To companies and customers that aim at sustainable development, our Group will make aconcentrated investment of management resources and advanced technologies that bring highadded value. The Group aims to be much more than a plant supplier; instead we plan to build andmaintain selected lifetime partnerships with our customers.
2) Promote Plant Lifecycle Engineering (PLE) [Customer Viewpoint]
In addition to strengthening our conventional business model (EPC: Engineering, Procurement,
Construction), the Group promotes a new business model called PLE, meaning Plant Lifecycle
Engineering, which should contribute toward making our customer’s assets more competitive.
PLE: Plant Lifecycle Engineering is a service provided by our Group, which optimizes all
aspects of a customer’s capital plant investment, beginning with the investment plan, andmoving through EPC, maintenance, operation, revamping and remodeling, anddecommissioning, and on to proposals on the next investment plan. PLE assumes mutual
access to a common database with the customer, and includes analysis of trade-offs
concerning cost, quality, stable production, occupational health and safety, ecologicalburden, and so on.
3) Stabilize profitability [Financial Viewpoint]
One of the Group’s strengths is project execution capability. To that strength, we are adding agreater element of risk management, which will help make sure we take on projects with highprobability and low risk. In addition, Group companies are paying strict attention to achieving a
positive cash flow provided by operational activities.

64) Strengthen competitiveness [Business Process Viewpoint]
As the Group further improves operational efficiency with the use of IT, operations should move
more quickly as well. In addition, we will continue to broaden and strengthen the functions of ourlow cost engineering centers, promote their strategic alliances with other companies, andstrengthen our overall competitiveness.
5) Human asset development and proper deployment [Personnel and Reform Viewpoint]
The Group considers it vital to develop and nurture our human assets and to maintain flexibility
in deploying those assets, thereby consolidating our position as a front runner among world
engineering corporations.
3.Managerial index objectives
Under the Group’s New Restructuring Plan, eliminating the accumulated loss is the first priority andgoal. However, that goal should be achieved by the fiscal year ending March 2005, one year earlier
than originally planned. The Group is now executing Project Super X, which ensures that the goal
will be achieved.
4.Basic policy concerning profit allocation
The Group is aware that early elimination of accumulated loss is the greatest return we can offer ourshareholders. At the same time, we realize that eliminating loss will lead to sustainable growth forour business and improvement of benefits for our employees. The Group is putting every effort into
execution of Project Super X, in order to return to our intrinsic corporate values and achieve theprofitability required to offer dividends every year.
5.Thinking and policies concerning the reduction of the minimum investment unit
The Group is aware that the number of shareholders has increased and that our shares the liquidity of
our shares is of great importance. Because of that awareness, the Group reformed the method withwhich we hold our annual general shareholders’ meetings, (we no longer merely read the report tothe shareholders, but instead, prepare audiovisual aids for the presentation.), prepared a new Website(we present information aimed at giving investors a better view of the Group), and are working on
preparing more detailed annual and interim reports.
As a result of these efforts, we believe that our shares have achieved a high degree of liquidity, andwe will continue in our efforts to provide more and better investor-oriented information and thereby
achieve further liquidity for our shares.
Concerning the reduction of the minimum investment unit, whenever necessary because of market
trends, and when it is required to the benefit of our shareholders, then we will consider taking theactions necessary.
6.Issues that must be dealt withThe Group is engaged in the following issues with the aim of achieving a return to healthy businessconditions and sustainable mid-to-long-term growth. In addition to objectives and progress
management for each issue, we plan to introduce the aforementioned balance scorecard, and achieve
an integral control system that more effectively manages among and between the issues.
1) Increasing customer satisfaction level [Customer Viewpoint]
The Group feels it is important to assess the level of customer satisfaction periodically to uncoverchanges in customer needs and market trends. This data will be used to strengthen the Group’s
ability to cope with such changes, while maintaining a certain level of tension among operating
personnel.

72) Continual improvement in quality management system [Customer Viewpoint]
One of the Group’s great strengths is project execution capability. We redefined project execution asa continual improvement cycle framework under our strict quality management system.
3) Strengthening and broadening our i-Plant21® technology [Business Process Viewpoint]
The Group will continue to expand the applicability of our proprietary i-Plant21® integrated projectengineering system, which puts data from E (engineering), P (procurement) and C (construction)
seamlessly into a database. In addition, we have formed a strategic alliance with IntergraphCorporation, one of the United States’ leading companies in the field of engineering software. This
enables us to combine our database and the EPC experience, expertise, and know-how (i-Plant21®)
with SmartPlant® Foundation, Intergraph’s engineering data warehouse, to speed the developmentof our second-generation i-Plant21®, which will further strengthen our competitiveness.
4) Enhancing corporate management system [Financial Viewpoint]
The Group plans to strengthen our project monitoring systems so that we can catch the inklings ofrisk at a very early stage. The entire Group is working to integrate IT systems, which will speed up
the gather management information, and build a system to integrate, concentrate, and manage cash
to headquarters, helping optimize Group cash flow from operating activities and financial
management.
5) Broaden use of overseas low cost engineering centers [Business Operations Viewpoint]
Our Group plans to aggressively broaden the functions of our overseas engineering subsidiaries,
while maintaining the quality of both overseas and domestic construction projects and achieving
more competitive costs. In addition, our virtual single office operation system (Chiyoda and Group
companies at home and abroad share a common IT foundation that makes it seem as if everyone is in
the same office, so operations move ahead smoothly), which shares the project execution IT
infrastructure, works to make operations even more efficient.
6) Career development program and success support [Personnel and Reform Viewpoint]
The Group has set up an organization of professionals to create a personnel development programthat crosses the entire Group and works from a mid-to-long-term viewpoint to plan, do, evaluate, andrevise, as our programs move forward in strengthening our personnel and taking them up to thehighest of professional levels. In addition, within the Group, we will review all personnel and theirpositions, adjusting as necessary, so that we have the right people in the right jobs throughout theorganization.
7.Actions taken to develop our operations management organization(reinforcement of Corporate Governance )1) Basic thinking on corporate governance
The Group understands that all corporate activities should basically be undertaken with theobjective of attaining the trust of customers and society alike, beginning with the shareholders.
Therefore, the Group strives for transparency and integrity in all such activities.

82) The situation concerning execution of corporate governanceThe corporate governance program, including decision-making, and the organizations concernedwith management and execution.

Corporate Governance Structure
Stockholders’ Meeting株
主 総 会
Board of Directors

取

締

役

Corporate Auditors

監

査

会

Executive Committee (composedof representative directors)
Crisis manager
SQE Division

Compliance Management Office

S Q E総総室

Occupational health and safety,
quality management,
environmental, information
security

Corporate administration
Executive officer
Risk manager

Internal Checks
and Balances

内部牽制

役

コンプライアンス監理
コ ン プCompliance
ライアン

Internalサイクル
control
PDCA
through theの徹底による
PDCA cycle
内部統制
P (Plan)
D (Do)P:
計画
C (Check)A (Action)
D:実施

C: 経営層による確認
A: 対策実行
Project operations
Executive officer
Risk manager

Self Auditing

自己監査

Chiyoda Corporation adopts a corporate auditor system, in accordance with the Commercial Code,
Law No.188, Article 2, Item 7-2, has one outside director, and in accordance with Commercial Code,
Law No. 18, Article 1, has three outside auditors.
In the fiscal year starting in April 2001, Chiyoda instituted an executive officer system, whichstrengthens operations management functions by separating execution from decision-making.
Concerning decision making, the company has set up an executive committee to cope with theeconomic situation and with rapid changes in society at large. The executive committee consists ofrepresentative directors, and unanimous votes are necessary for decisions concerning importantbusiness executions. Corporate auditors attend executive committee meetings, and express theiropinions when asked to do so. The executive committee contributes to quick, transparent decisionmaking process.
Day-to-day operations move ahead based on the decisions made by the Board of Directors and theexecutive committee. The executive officers, in executing the policies of the Board of Directors,
consult with such outside sources as legal advisors and lawyers as they carry out their
responsibilities. The executive officers report accordingly on the progress of the business executions
at executive officers committee or executive committee meetings at which directors and/or auditors
are in attendance. Directors oversee executive officers, and auditors ascertain that directors’ actions
are within legal boundaries.
Organizations attached to the executive officers committee audits business operations for compliance,
occupational health and safety, quality, environmental issues, and information security management.
If there is doubt about any facet of the operations being audited, the executive officers committee isinformed immediately. The organizations do not conduct one-way audits as it were, but maintain
constant communications with the various sectors, which enables them to emphasize knowing in
advance of probable problems, so they can be discussed and solutions found before the fact.

9

On the other hand, individual projects get double checked, once by the project team, which audits its
own project and controls profitability, and a second time by the audit department. This kind of
double check helps assure transparent business operations.
These interlinking systems assume the operations cycle (planÆdoÆconfirm by managementÆcountermeasure) is strictly adhered to, and confirm that the management layer is monitoring
project execution and understands the internal check functions and make the most of those functions.
During the fiscal semester covered by this report, professional audit staff in corporate administration
started project audits, which examine the project execution plans from the viewpoint of management.
We feel this new internal audit program will add to the transparency and internal checks and controlsof our Group operations.
8. Basic policies concerning related parties (Chiyoda Corporation, etc.,)
Chiyoda Corporation’s major shareholder, Mitsubishi Corporation, which holds more than 10% of
the voting stock, is also a certain supplier of the materials our Group uses in executing our projects.
Furthermore, we have a broad-ranging business relation with that shareholder. We intend to continue
this relationship and to strengthen it.
Chiyoda’s external board member is the Chairman of Kellogg Brown and Root (KBR) of the UnitedStates. KBR competes with Chiyoda in certain areas and we have technology alliances with thecompany in the field of petroleum and petrochemicals. Further, through a special purpose company,
KBR is a Chiyoda shareholder.
Chiyoda has one outside auditor, a former managing director of the Bank of Tokyo-Mitsubishi and aformer Associate Director of Mitsubishi Trust and Banking. These two banks are major shareholdersof Chiyoda stock as well as important financial service providers to the company.
(3) Business Results and Financial Conditions
1. Consolidated business results for the fiscal semester ended September 30, 2003
During this fiscal semester, Japan’s economy became to see a slight increase in capital investment
with consumer spending remaining flat. With the recovery shown by the U.S. economy, the export
environment showed an upturn and domestic share prices rose, which showed that economic
recovery was on its way. However, overseas conditions saw stagnation in Europe, and adverse
effects of SARS (Sudden Acute Respiratory Syndrome) on Asian economies. Nevertheless, China,
which is a desirable market in the mid-to-long term, continued to exhibit strong growth.
The Japanese plant market got stronger on demand for low-sulphur fuel projects by oil companies
and resin plants by Japanese chemicals companies investing in China. In addition, the government
has instructed thermal power plants to convert to LNG to reduce CO2 emissions, and work on thoseconversions has begun. In the move to clean fuels, natural gas is a focus of attention, and feasibility
studies are under way in the increasingly active field of LNG receiving terminal construction.
Overseas, production of natural gas in the United States is on a downward trend, and that country is
expected to boost imports of LNG aggressively to fill the gap. As markets deregulate, many
European countries are starting new gas supply concerns, even though the overall volume of LNG
imported to Europe is still on the rise. Britain, specifically, announced a new LNG importation
program. India signed an LNG supply agreement with Qatar, China has come to agreements withIndonesia and Australia, so the continuing shift to gas is clear. On the other hand, although politicalinstability and fear of terrorism in the Middle East continue, countries in the region are still
engineering and constructing new gas treatment plants, LNG and LPG plants.

10

Operating in these markets and economic conditions, Chiyoda concentrated on securing new orders,
and, as planned, was able to garner a large-scale project. As a result, of the ¥270 billion forecast for
the fiscal year, about 90% was achieved during this fiscal semester, amounting to ¥241,522 million,
an increase of 138.6% over the same fiscal semester last year. A breakdown of orders received
shows ¥40,934 million in the domestic market, a decrease of 1.4%, and ¥200,588 million in overseas
markets, an increase of 235.9%.
Major new orders received included:• Sakhalin II LNG Project for Russia (Grass-roots LNG plants and an addition to crude oil export
facilities)• Additional gas processing plants for RasGas in Qatar• Offsite and utility facilities for ExxonMobil’s Al-Khaleej Gas Project Phase-1• Kamisu LPG stockpiling terminals project• Additional oil storage tankage expansion project of San-Ai Plant Co., Ltd.
• Polyvinyliden chroride (PVDC) production plant project for joint venture of Kureha Chemical
Industry Co., Ltd. in China.
• No.10 hydrodesulfurization plant project at the Mizushima Refinery for Nippon Petroleum
Refining Co., Ltd.
• FEED work of No.4 LPG train for United Arab Emirates (UAE)
In consolidated projects completed, steady progress in large-scale projects brought projectscompleted for the fiscal semester to ¥88,679 million, a 27.9% increase over last year's figure at thistime, and 10% above the ¥80 billion estimated at the beginning of the fiscal year. A breakdown ofcompleted projects shows ¥27,848 million in the domestic market, a decrease of 8.5%, and ¥60,831
million in overseas markets, an increase of 56.3%.
Major projects completed included:• The completed portion of construction on LNG plant (Train 3) for Qatar• The completed portion of construction of an ethylene plant for Saudi Arabia• The completed portion of construction of an LNG plant for Oman
• The completed portion of construction of the Sakhalin II LNG Project for Russia• The completed portion of construction of a methanol plant for Saudi Arabia• A CDU revamping and construction of a crude oil splitter for Taiyo Oil Co., Ltd.
• LNG plant (Train 3) debottlenecking study for Qatar• Basic engineering for acetic acid project phase I for Guizhou Crystal Organic Chemical Group
Co., Ltd.
In profits and losses, stricter choices of projects, improved project execution and risk management,
plus improvement of profitability of each individual project, combined with reductions in selling,
general and administrative expenses, resulted in a major increase in operating profit of 142.3% overlast year, to a total of ¥2,495 million. Ordinary profit came to ¥3,011 million, 115% above last year’s
amount of the ¥1,400 million estimated at the beginning of the fiscal year. Net profit for the semesterreflects a deduction in the allowance for doubtful accounts due to decrease of loans whose recovery
are in doubt and deferred tax assets resulting from the recovering economy, reaching ¥2,162 million,or 116% of the ¥1.0 billion estimated for the entire fiscal year.

11Change in Business Results (Consolidated)
Billions of Yen

Apr.1–Sept.30,
2001
Orders Received
Completed Projects
Operating Profit
Ordinary Profit
Net Profit

99.1
71.6
(1.9)
(1.7)
0.2

Apr.1–Sept.30,
2002

Apr.1–Sept.30,
2003

101.2
69.3
1.0
1.6
2.4

241.5
88.6
2.4
3.0
2.1

(Ref.)
Apr.1, 2003 –Mar.31, 2004
249.0
166.3
1.5
2.3
1.9

Revisions of Consolidated Interim Business Results Forecasts for Fiscal Year Ending March 31,
2004 (April 1, 2003 – March 31, 2004)
Millions of Yen, %Projects
Ordinary profits
Interim netcompletedprofits
Forecasts announced on May 16, 2003 (A)80,0001,400
1,000
Forecasts announced on September 30,
88,6793,011
2,162
2003 (B)8,679
Increase/decrease (B-A)
1,611
1,162
Increase ratio
10.8
115.1
116.2
Interim business results ending September
69,3441,631
2,479
30, 2002
Non-consolidated orders received amounted to ¥213,238 million, or an increase of 163.3% over thesame period of the previous year, achieving in the first semester over 90% of the ¥230 billion
estimated at the beginning of the fiscal year. Of the total, ¥2,816 million, or a decrease of 2.1% fromthe previous year, came from domestic sources, and ¥185,132 million, or an increase of 254.3% overthe previous year, from overseas sources. Non-consolidated projects completed amounted to ¥7,073
million, or an increase of 17% from ¥60 billion estimated at the beginning of the fiscal year. Of thatamount, ¥14,224 million, or an increase of 1.1% over the same period of the previous year, wasdomestic and ¥56,479 million or an increase of 57.1% over the previous year, was from overseas.
As for profits and losses, operating profit amounted to ¥1,238 million, or an increase of 329.2%, andordinary profit was ¥1,596 million or 22% above ¥1.3 billion estimated at the beginning of the fiscal
year. Net profit for the fiscal semester was ¥735 million, falling short of the initial forecast of ¥1billion by 26%.
Revisions of Non-Consolidated Interim Business Results Forecasts for Fiscal Year Ending
March 31, 2004 (April 1, 2003 – March 31, 2004)
Millions of Yen, %Projects
Ordinary profits
Interim netcompletedprofits
Forecasts announced on May 16, 2003 (A)60,0001,300
1,000
Forecasts announced on September 30,
70,703
1,596
735
2003 (B)
10,703
Increase/decrease (B-A)
296
(265)
Increase ratio
17.8
22.8
(26.5)
Interim business results ending September
50,0131,850
2,937
30, 2002

12

2.Financial Conditions for the fiscal semester ended September 30, 2003
1) Assets, liabilities, and shareholders’ equity as of September 30, 2003
AssetsFixed assets as of September 30, 2003, were ¥375 million lower than at the same time in theprevious year. This was due to a decrease in foreign-currency long-term accounts receivablebecause of the appreciation of the yen. Current assets increased by ¥18,141 million because of anincrease in jointly controlled asset of joint ventures involved in large projects. As a result, total
assets increased by ¥17,765 million from the previous year ending March 31, 2003.
Liabilities
Notes and accounts payable such as outstanding balance on construction, decreased by ¥4,313
million. However, total liabilities increased by ¥15,713 million from the same time in theprevious year because the amount received on incomplete construction contracts increased by¥16,217 million and the allowance for retirement benefits was increased by ¥578 million.
Shareholders’ Equity
Shareholders’ equity increased by ¥2,046 million over last year’s figure, due to an increase in theinterim net profit. However, the shareholders’ equity to assets ratio rose to 13.6% thanks to anincrease in total assets, remaining almost the same as the ratio at the end of the last fiscal year.
2) Cash flow for the fiscal semester ended September 30, 2003
Net cash provided by operations
The interim profit before income taxes and minority interests was ¥1,787 million, accrued
consumption tax payable increased by ¥668 million, and depreciation increased by ¥595 million.
Retirement benefits payable increased by ¥578 million. In addition, profits of operating funds(total increase or decrease for notes and accounts receivable, cost of construction in progress,
notes and accounts payables, and advance receipts on construction contracts) increased by ¥1,694
million. However, the net cash provided by operating activities resulted in minus ¥3,378 million,
due to an increase of ¥11,585 million in jointly controlled assets of joint ventures.
Jointly controlled assets of joint ventures indicate the amount of Chiyoda’s portion in thesettlement of accounts of the joint venture contracts in which Chiyoda is involved. It is essentially
Chiyoda’s portion of the deposit amount of the joint venture account. The net cash provided byoperational activities considering this point results in ¥826 million.
Net cash used in investments
The net cash provided by investing activities resulted in minus ¥673 million as a result of ITrelated software investments, although there was revenue by collecting long-term accounts
receivable.
Net cash used in financing
Net cash used in financing resulted in minus ¥241 million by redemption of borrowings.
As a result of the above factors, the balance of cash and cash equivalents as of the end of
September 2003 was ¥31,145 million yen, a decrease of ¥3,794 million yen over the previous year
ending March 31, 2003.

13

Change in Financial Conditions (Consolidated)
Billions of Yen

Total Assets
Total Liabilities (*)
Shareholders’ Equity
Net CashOperatingprovided by
Activities(used in):Investing
Activities
Financing
Activities
Balance of Cash/ and Cash
Equivalents*) Includes minority interests.

Apr.1–Sept.30,
2001

Apr.1–Sept.30,
2002

Apr.1–Sept.30,
2003

130.9
115.8
15.1
4.2

134.5
117.3
17.1
5.1

138.0
119.3
18.7
△3.3

(Ref.)
Apr.1, 2003
–Mar.31m
2004
120.2
103.6
16.6
6.9

0.3

△0.2

△0.6

△0.8

△6.1

△4.5

△0.2

△9.5

32.5

38.8

31.1

34.9

Cash Flow Indices
Apr.1–Mar.31,
2000
11.0%

Apr.1–Mar.31,
2001
11.7%

Apr.1–Mar.31, Apr.1–Sept.30,
2003
2002
13.9%
13.6%

Shareholders’ Equity per
Total Assets
35.3%
29.8%
49.9%
Shareholders’ Equity at
85.4%
Market Value per Total Assets-Years for Debt Redemption-2.7
2.7(interest-bearing debt divided
by operating cash flow)
-17.5
11.7
-Interest Coverage Ratio(operating cash flow divided
by interest expense)
Ref.: Years of debt redemption by cash flow provided by operating activities is essentially 2.2 years
and interest coverage ratio is essentially 40.0.
3. Outlook for FY2003 Business Results
Concerning the outlook for the remainder of the fiscal year, progress of reforms undertaken by thecentral government as well as the appreciating yen cause some reservations, but slowly increasing
corporate profits are among the hopeful signs of a continuing recovery.
In Japan, we can expect continuing orders for gasoline desulfurization projects from the domestic oil
industry. In addition, the movement among petrochemical companies to seek ways of strengthening
competitiveness on the industrial complex level, petroleum corporations and other companies are
instigating energy conservation policies, technological tie-ups, and so on, that affect entire
geographical areas. Our Group takes advantage of its storehouse of technology to make effective
proposals that should result in orders for large projects in the near future.
Overseas, with the Iraq War and other problems, the situation in the Middle East remains unclear,but the energy majors are clearly shifting toward the use of gas. Therefore, we can safely forecast
continuing growth in gas-related projects worldwide, including major upstream facilities. Thatmeans our Group should be able to take maximum advantage of proprietary gas value chain service
capabilities to further our business in the gas industry.

14

Based on the factors outlined above, for the fiscal year ending March 31, 2003, the Group forecasts
new orders to reach ¥280 billion (¥270 billion estimated at the beginning of the fiscal year), net sales
from construction contracts of ¥200 billion (same as the estimate at the beginning of the fiscal year),consolidated ordinary profit of ¥5 billion (¥4.2 billion estimated at the beginning of the fiscal year),and consolidated net income of ¥4.1 billion (¥3.4 billion estimated at the beginning of the fiscal
year), assuming an exchange rate of ¥110 =US$1.00.
Non-consolidated results should see ¥230 billion (same as the estimate at the beginning of the fiscal
year) in new orders received, ¥160 billion (same as the estimate at the beginning of the fiscal year)
in completed projects, ¥3.5 billion (same as the estimate at the beginning of the fiscal year) in
operating profits, and ¥3.3 million (same as the estimate at the beginning of the fiscal year) in net
profit.
Once again, the Group plans to suspend payment of dividends.
[Cautions regarding forecasts]
Please note that the Outlook for Business Results contained in this report consists of projections of
the future based on certain presuppositions, and that actual results may differ significantly fromthose projections due to many factors. Therefore please do not make judgments based only on the
projections contained herein.

15

Financial Statements
1. Consolidated Balance Sheets
Millions of Yen
Yen
As of Sept. 30, 2003

As of Sept. 30, 2002%
AssetsCurrent Assets
Cash and time deposits
Notes and accounts
receivable-trade
Costs of construction
contracts in process
Deferred tax assets
Jointly controlled assetof joint venture
Other
Allowance for doubtful
accounts
Total Current Assets
Fixed Assets
Buildings andstructures
Accumulated
depreciation
Machinery andequipment
Accumulated
depreciation
Tools, furniture andfixturesAccumulated
depreciationLand
Total property, plantand equipment
Intangible fixed assets
Investments and otherassetsInvestment
securities
Long-term loans
Long-term accounts
receivable
Long-term
receivables
Deferred tax assets
Other investments
Allowance for
doubtful accounts
Allowance forinvestment loss
Total investments andother assets
Total Fixed Assets
Total Assets

32,272

36,11225,392

29,41725,37430,94327,273

21,105

263

854

194

8,914

20,257

8,672

5,505

5,533

6,098

(721)

(536)

(628)

82.1

6,582
3,474

3,311

83.3

217

616

3,351

3,199

4,278

80.6

3,476

959
200

825

5,196
883

96,929

6,675

817

5,186
4,302

115,071

6,663

1,158
940

As of March 31, 2003%

40,090110,387

3,108

%

134

5,177
918

4,249

928

2,526

2,526

2,526

7,102

6,998

7,067

2,160

2,416

2,317

3,917

4,341

4,206

555

671

631

5,853

5,405

5,793

6,713

5,526

5,650

264
2,868

79
2,224

82
2,367

(5,323)(4,409)(4.485)

--

(263)

(263)

14,85013,577

13,983)
13,983)24,11217.9

22,991

16.7

23,367

19.4

134,500

100.0

138,063100.0

120,297100.0

16

As of Sept. 30, 2002%
Liabilities and Shareholders’Shareholders’ Equity
Current Liabilities
Notes and accounts payable-trade
Short-term loans
Income taxes payable
Advance receipts on construction contracts
Deferred tax liabilities
Indemnity allowance for completed
construction
Accrued bonuses
Allowance for contingent loss
Other
Total Current Liabilities

Yen
Millions of Yen
As of Sept. 30, 2003%

As of March 31, 2003%

39,60813,020483
42,02812

42,1978,066
132
41,389−46,5118,202
294
25,172
−

961
1,250

945
1,276

694
1,375

800
5,456

2,146
8,415

800
6,354

103,62177.0

104,57175.7

89,404

74.3

Non-C
Non-Current Liabilities
Long-term debt
Deferred tax liabilities
Liability for retirement benefits
Liability for retirement benefit to directors
Other liabilities
Total Non-C
on-Current Liabilities

10,528
11
2,433
211
85
13,2709.9

14,271

10.1

13,724

11.4

Total Liabilities

116,892

86.9

118,842
118,84286.0

103,129

85.7

480

0.4

504

0.4

499
499

0.4

12,027
5,818
(16)

8.9
4.3
(0.0)

12,027
5,818
1,312

8.7
4.2
1.0

12,027
5,818
(496)

10.0
4.3
(0.4)

Minority Interests

10,367
10
3,489
309
93

10,422
9
2,910
270
111

Shareholders’Shareholders’ Equity
Common stock
Additional paid-in capital
Retained earnings
Net unrealized loss on available-for-salesecurities
Foreign currency translation adjustments
Treasury stock
Total Shareholders’hareholders’ Equity

11
(692)
(21)

0.0
(0.5)
(0.0)

18
(360)
(101)

0.0
(0.2)
(0.1)

10
(642)
(48)

0.0
(0.5)
(0.0)

17,127

12.7

18,715

13.6

16,66913.9

Liabilities, Minority Interests andShareholders’Shareholders’ Equity

134,500

100.0

138
138,063
063

100.0

120
120,297100.0

17

2. Consolidated Statements of Income
Yen
Millions of YenApr. 1, 2003 –Sept. 30, 2003

Apr. 1, 2002 –Sept. 30, 2002%
Construction Contracts

Apr. 1, 2002 –Mar. 31, 2003%%

69,344100.
088,679100.0

166,367

100.0

63,852

92.1

82,098

92.6

155,924

93.7

5,492

7.9

6,580

7.4

10,433

6.3

4,462

6.4

4,085

4.6

8,894
,894

5.4

1,029

1.5

2,495

2.8

1,548

0.9

1,751

1.0
1.0

Cost of Construction
Contracts
Gross profit
Selling, General and
Administrative Expenses
Operating profit
Other Income
Interest
Dividend income
Foreign exchange gain
Equity in earnings ofassociated companies
Rent income
Other
Total Other Income

147

176

331

20
−

46
303

28
−

818

171

1,000

−
263

−
186

205
186

Other Expenses
Interest expense
Cost of rent income
Foreign exchange loss
Other
Ordinary profit

284
−
242
121

Extraordinary Gain
Reversal of allowancefor doubtful accounts
Gain on sales ofinvestments in
subsidiaries
Adjustments to previous
period earnings
Other
Total Extraordinary Gain
Extraordinary Loss
Allowance forcontingent loss carried
overLoss on devaluation ofgolf membership
Allowance forinvestment loss
Loss on sale of fixed
assets
Other
Total Extraordinary Loss
Profit before income taxes
and minority interests
Income taxes current
Refund of foreign tax
Income taxes deferred
Total Tax
Minority interests in net
incomeNet Profit

1,250

1.8

648

0.9

1,631

2.4

884

202
49
−
115

1.0
1.0

367

0.4

3,011

3.4

528
93
178
106

1,461

199

1,167

314

−

314

−

−

184

239

0
2,015

2.9

0.5
1.4

1,708

1.0

42
200

0.2

800

1,346

800

−

−

294

−

−

263

75

−

79

94

906
2,393

78

155

970

1.4

1,425

1.6

1,593

0.9

2,677

3.9

1,787

2.0

2,508

1.5

888
(317)
(388)

267
−
(659)

951
(317)
(146)

181

0.3

(392)

0.4
0.4

487

0.3
0.3

15

(0.0)

17

(0.0)

22

(0.0)

2,479

3.6

2,162

2.4

1,999

1.2

18

3. Consolidated Statements of Retained Earnings
Yen
Millions of YenApr. 1, 2003 –Sept. 30, 2003

Apr. 1, 2002 –Sept. 30, 2002
Capital Surplus
Capital Surplus at Beginningof Period
Capital surplus at beginningof period
Capital Surplus at End of
PeriodRetained Earnings
Retained Earnings at
Beginning of Period
Consolidated retained
earnings at beginning of
periodIncrease in Retained
Earnings From:
Net profit
Consolidated subsidiaries
Total Increase in Retained
Earnings
Decrease in Retained
Earnings From:
Consolidated subsidiaries
Total Increase in Retained
Earnings
Retained Earnings at End of
PeriodApr. 1, 2002 –Mar. 31, 2003

5,818
5,818

5,818

5,818

5,818

5,818

5,818
5,818

(496)

(2,516)(2,516)(2,516)

2,479

2,162

1,999

20

−

20

2,499

2,162

352

−

(2,516)

2,019

−

−

352)
352)

−

(16)

1,312)
1,312)(496)

19

4. Consolidated Statements of Cash Flow
Yen
Millions of YenApr. 1, 2003 –Sept. 30, 2003

Apr. 1, 2002 –Sept. 30, 2002
Cash from Operating Activities
Income before income taxes andminority interests
Depreciation and amortization
Decrease in allowance for doubtful
accounts
Interest and dividend income
Interest expense
Foreign exchange - (net)
Equity in earnings of associatedcompanies
Gain (loss) on sales of investment in
subsidiaries
Loss on devaluation of investment
securities
Gain on discharge of liabilities
Loss on devaluation of golf membership
Decrease (increase) in trade notes andaccounts payable
Decrease (increase) in costs ofconstruction contracts in process
Increase (decrease) in trade notes andaccounts payable
Increase (decrease) in advance receipts
on construction contracts
Increase (decrease) in accrued bonuses
Increase in retirement benefits
Indemnity allowance for completed
contracts
Increase in allowance for investment
loss
Increase in allowance for contingency
loss
Increase in jointly controlled assets ofjoint ventures
Increase (decrease) in consumption
taxes payable
Other
Subt
SubtotalInterest and dividend income
Interest paid
Income taxes paid
Net Cash Provided by Operating Activities

Apr. 1, 2002 –Mar. 31, 2003

2,677

1,787

2,508

623

595

1,225

(1,187)

(167)

(967)

(168)
284
640

(222)
202
380

(359)
528
915)

(818)

(171)

(1,000)

(314)

―)

(314)

50

―

―

75
―

―
―

90
294

2,187

(4,042)

1,144(7,033)(6,167)

2,804

(734)

(4,313)

6,167

8,315

16,217(8.540)

33
604

(99)
578

158
1,081

126

251

(140)

―

(0)

263

800

1,346

800

―

(11,585)―(1,961)668(1,845)

255

1,349

1,932

4,456
1,390
(364)
(379)

(3,392)
462
(205)
(243)

6,747
1,576
(594)
(790)

5,103

(3,378)6,939

20

4. Consolidated Statements of Cash Flow (continued)
Yen
Millions of YenApr. 1, 2003 –Sept. 30, 2003

Apr. 1, 2002 –Sept. 30, 2002
Cash Flow From Investing Activities
Payment for time deposits
Proceeds from refunds of time deposits
with maturities
Payments for purchase of investment
securities
Proceeds from sales of investment
securities
Purchase of investment in consolidated
subsidiaries
Proceeds from sales of investment in
subsidiaries within the scope of
consolidation
Purchase of property, plant andequipment
Proceeds from sale of property, plantand equipment
Purchase of intangible fixed assets
Proceeds from sale of intangible fixed
assetsNet decrease in short-term bank loans
Long-term loans
Proceeds from collections of long-term
loans
Other
Net Cash Used in Investing Activities
Cash Flow From Financing Activities
Net decrease in short term bank loans
Proceeds from long-term debt
Repayments of long-term debt
Other
Net Cash Used in Financing Activities
Foreign Currency Translation Adjustments
on Cash and Cash Equivalents
Net Increase in Cash and Cash Equivalents
Cash and Cash Equivalents at Beginning of
PeriodIncrease in Cash and Cash Equivalents from
New Consolidation
Cash and Cash Equivalents at End
End of Period

Apr. 1, 2002 –Mar. 31, 2003

(50)

(1)

(48)

489

30

588

(12)

(18)

(118)

2

―

7

―

―

(30)

115

―

115

(144)

(266)

(296)

127

4

141

(408)

(466)

(852)

―

―

1

14
(530)

1
(73)

51
(637)
193

0

115

107

0)

11

(289)
289)

（673)

(873)

(4,148)
0
(427)
（15)

(45)
―
(142)
(53)

(8,717)
8
(792)
(42)

（4,591)
4,591)（241)
241)(9,544)9,544)

(271)

498

(459)

(48)

(3,794)
3,794)(3,937)

38,67734,94038,677

200

―

200

38,82831,14534,94021

Segment Information
1. Industry Segments
The Company’s latest six-month period was from April 1, 2002 to September 30, 2003. The previous sixmonth period was from April 1, 2002 to September 30, 2002, and the latest fiscal year was from April 1, 2002
to March 31, 2003. The main business of the Chiyoda Group is engineering that focuses on the planning,
design, construction, and operations assistance of public- and private-sector facilities, as well as facilities forpollution prevention and environmental preservation and enhancement. In non-engineering businesses, there
are no segments that account for 10% or more in terms of either sales or operating profits, and as such thesesegments have been omitted.

2. Geographic Segments
Latest Six-Month Period (From April 1
1,, 2002 to September 30, 2002
2002)
Millions of Yen

Sales
Outside customers
Inter-segment
Total
Operating expenses
Operating profit (loss)

EuropeNorth
America

OthersEliminations(Corporate)

Consolidated

69,344−

69,344

10,615(10,615)−

0

79,960(10,615)

69,344145

1178,685(10,370)

68,315

(20)

(11)

1,274

( 245)

1,029

Japan

Asia

66,834

2,402

3

103

0

10,225

260

109

20

0

77,059

2,663

112

124

75,715

2,699

113

1,343

(35)

（0)

Total

(Notes)(1)
Geographic segmentation is according to geographic proximity(2)
Countries included in regions other than Japan:
Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand.
Europe: U.K., Germany and Poland.
North America: U.S.A.
Other regions: Nigeria.
(3)
Changes in Accounting Principles:
1) As noted in Changes in accounting processing, starting from the six-month period ending September 2003,
the Company has implemented a change to a new accounting method by which income and expenses related
to leases for the purpose of real estate business are included in non-operating profit and loss. As a result of
the above factors, operating income of Japan was ¥41 million less than it would have been under previous
accounting principles. This change had no effect on segments outside of Japan.
2) As noted in Allowances for retirement benefits (additional information), starting from the current fiscal
year, the Company has changed the fixed number of years for the processing of operating expenses for
actuarial loss to 12 years, from the previous 13 years. This change will have only a slight effect on eachsegment.

22

Previous Six-Month Period (From April 1
1,, 2003 to September 30, 2003
2003)
Millions of Yen

Sales
Outside customers
Inter-segment
Total
Operating expenses
Operating profit (loss)

OthersAsia

６７，84,956

3,696

26

－

－

88,679

－

1

299

153

19

－

473

(473)

－

84,957

3,996

180

19

－

89,153(473)

88,67982,439

4,058

173

18

3

86,692(508)

86,184

2,460

34)

2,495

(62)

7

1

Total

Eliminations(Corporate)

Japan

2,518

EuropeNorth
America(3)

Consolidated

88,679(Notes)(1)
Geographic segmentation is according to geographic proximity(2)
Countries included in regions other than Japan:
Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand.
Europe: U.K., Germany and Poland.
North America: U.S.A.
Other regions: Nigeria(3)
As noted in Allowances for retirement benefits (additional information), starting from the current fiscal year,
the Company has changed the fixed number of years for the processing of operating expenses for actuarial
loss to 12 years, from the previous 13 years. This change will have only a slight effect on each segment.

Previous Fiscal Year (From(From April 1, 2002
2002 to March 31, 2003
2003)
Millions of Yen

Sales
Outside customers
Inter-segment
Total
Operating expenses
Operating profit (loss)

Japan

Asia

EuropeNorth
America

160,52
6
25,163

5,659

48

133

624

199

42

0

185,689
183,42
5

6,283

247

175

0

6,473

249

199

14

(2,263)
2,263)

(189)

(2)

(23)
23)

(14)
14)

OthersTotal

0166,36
7
26,028Eliminations(Corporate)

Consolidated−

166,367(26,028)−

192,395
190,362(26,028)

166,367(25,543)

164,818(2,033)

(484)

1,548

(Notes)(1)
Geographic segmentation is according to geographic proximity(2)
Countries included in regions other than Japan:
Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand.
Europe: U.K., Germany and Poland.
North America: U.S.A.
Other regions: Nigeria(3)
As noted in Allowances for retirement benefits (additional information), starting from the current fiscal year,
the Company has changed the fixed number of years for the processing of operating expenses for actuarial
loss to 12 years, from the previous 13 years. This change will have only a slight effect on each segment.

23

3. Overseas Sales
Latest Six-Month Period (From(From April 1,
1, 2002 to September 30, 2002
2002)
Millions of Yen
Asia

Overseas sales
Consolidated net sales
Ratio of overseas to consolidated net sales

Middle East

Other Regions

13,905

18,831

6,180

Total
38,91820.05%

27.16%

8.91%

56.12%

69,344(Notes)(1)
Geographic segmentation is according to geographic proximity(2)
Countries and areas included in each region:
Asia: China, Singapore and Indonesia.
Middle East: Qatar and Saudi Arabia.
Other regions: Venezuela.
(3)
Overseas sales are those sales of the Company and its consolidated subsidiaries that take place in countries
or regions other than Japan.

Previous Six-Month Period (From(From April 1, 2003
2003 to September 30, 2003
2003)
Millions of Yen
Asia

Overseas sales
Consolidated net sales
Ratio of overseas to consolidated net sales

Middle East

Other Regions

7,725

45,521

7,584

Total
60,831

8.71%

51.33%

8.55%

88,67968.59%(Notes)(1)
Geographic segmentation is according to geographic proximity(2)
Countries and areas included in each region:
Asia: Thailand, China, and Indonesia.
Middle East: Qatar, Saudi Arabia, Oman, and Iran
Other regions: Russia and Venezuela.
(3)
Overseas sales are those sales of the Company and its consolidated subsidiaries that take place in countries
or regions other than Japan.

Previous Fiscal Year (From(From April 1,
1, 2002 to March 31, 2003
2003)
Millions of Yen
Asia

Overseas sales
Consolidated net sales
Ratio of overseas to consolidated net sales

Middle East

Other Regions

25,36846,66011,28415.25%

28.04%

6.78%

Total
83,313
166,36750.07%(Notes)(1)
Geographic segmentation is according to geographic proximity(2)
Countries and areas included in each region:
Asia: Singapore, China and Indonesia.
Middle East: Qatar and Saudi Arabia.
Other regions: Venezuela and Russia(3)
Overseas sales are those revenues of the Company and its consolidated subsidiaries that take place incountries or regions other than Japan.

24

Production, Orders and Sales Situation
1. OrdersBusiness Segment
Engineering

Yen
Millions of YenApr. 1, 2003 –Sept. 30, 2003
New Orders
Backlog%%

Apr. 1, 2002 –Sept. 30, 2002
New Orders
Backlog%%

Apr. 1, 2002 –Mar. 31, 2003
New Orders
Backlog%%Petroleum

4,719

4.7

33,133)[-2,952]

12.4

23,511[398.2%]

9.7

22,312[1,653]

4.9

9,732

4.0

14,315[-3,360]

4.5

Petrochemical

17,53317.3

55,706[-1,845]

20.8

2,072
[-88.2%]0.8

27,108[-1,448]

6.0

18,236

7.3

43,945[-2,236]

13.9

Chemical

25,97825.7

35,451[-238]

13.3

3.5

25,066[1,812]

5.5

30,42612.2

26,503[-204]

8.4

Gas

28,78928.4

107,675[-5,014]40.3

185,663[554.9%]76.9342,407[-9,642]75.4

147,04959.0

199,549[-6,118]

63.1

557

0.5

3,759
[-40]

1.4

1,119
[100.7%]

0.5

3,355
[7]

0.8

1,155

0.5

2,521
[-40]

0.8

General industries

1,988

2.0

4,529
[-7]

1.7

1,376
[-30.8%]

0.6

6,915
[1,024]

1.5

2,750

1.1

5,073
[-8]

1.6

Other

18,98718.8

26,972[-680]

10.1

17,493[-7.9%]

7.2

26,786[-8,464]

5.9

34,88514.0

24,259[-727]

7.7

Engineering,Engineering, Total

98,55497.4

267,228[-10,779)
10,779)100.0

239,695[143
43.
[1
43.2%]

99.2

453,952 100.0[-15,057]-15,057]

244.23898.1

316,167 100.0[-12,696]

Other

2,677

2.6

—
[-17]

—

1,827
[-31.7%]

0.8

—
[—]

4,855

1.9

—
[—]

Total

101,232100.0

267,228[-10,797]

100.0

241,522[138.6]100.0

453,952 100.0[-15,057]

Infrastructure

8,458[-67.4%]—

249,093 100.0—

316,167 100.0[-12,696]25

Breakdown of Domestic and Overseas Orders
Yen
Millions of YenApr. 1, 2003 –Sept. 30, 2003
New Orders
Backlog%%

Apr. 1, 2002 –Sept. 30, 2003
New Orders
Backlog%%
Domestic

41,50941.0

109,177[-543]

40.9

40,934[-1.4%]

Overseas59,72259.0

158,050[-10,253]

59.1

200,588[235.9%]Total

101,232100.0

267,228[-10,797]

100.0

241,522[138.6%](Note)

96,622[-68]

21.3

68,605

27.6

83,604[-585]

357,330[-14,989]

78.7

180,48872.4

232,562[-12,111]

453,952[-15,057]

100.0

249,093100.0

316,167[-12,696]

16.9

83.1

100.0

Apr. 1, 2002 –Mar. 31, 2003
Backlog
New Orders
%
%
26.4

73.6

100.0

Numbers in brackets under “Backlog of orders” indicate the total of increases or decreases accompanying
foreign currency translation adjustments related to foreign currency contract, increases resulting fromadjustments for new orders, and decreases resulting from contractual changes in orders received before theprevious fiscal year.

2. SalesBusiness Segment

Yen
Millions of YenApr. 1, 2003 –Sept. 30, 2003%

Apr. 1, 2002 –Sept. 30, 2002%

Engineering

Apr. 1, 2002 –Mar. 31, 2003%

11,07316.0

17,167[55.0%]

19.4

34,496

20.7

Petrochemical

4,162

6.0

17,460[319.5%]

19.7

16,236

9.9

Chemical

6,160

8.9

11,707[90.1%]

13.2

19,58911.8

22,69032.7

33,163[46.2%]

37.4

47,972

28.8

175

0.2

292
[66.8%]

0.3

2,011

1.2

1,502

2.1

559
[-62.7%]

0.6

1,719

1.0

Other

20,92130.2

6,500[-68.9%]7.3

39,486

23.7

Engineering,Engineering, Total

66,68596.1

86,852[30.2%][30.2%]

97.9

161,511

97.1

Other

2,659

3.9

1,827
[-31.3%]

2.1

4,855

2.9

Total

69,344100.0

88,679[27.9%]][27.9%

100.0

166,367

100.0

Petroleum

Gas

Infrastructure

General Industries

26

Breakdown of Domestic and Overseas Sales
Apr. 1, 2002 – Sept. 30,
2002
%

Yen
Millions of YenApr. 1, 2003 – Sept. 30,
2003%

Apr. 1, 2002 – Mar. 31,
2003%

Domestic

30,42643.9

27,848[-8.5%]

31.4

83,05349.9

Overseas

38,91856.1

60,831[56.3%]

68.6

83,313

50.1

Total

69,344100.0

88,679[27.9%]

100.0

166,367

100.0(Notes)(1)“Status of production” is not listed, because it is difficult to define production results for the Chiyoda Group.
(2)
Sales results and percentages of total sales for main customers are shown below.

Apr. 1, 2002 – Sept. 30, 2002
Customer%Ras Laffan LNG Co., Ltd. 13,310

(3)

19.2

Yen
Millions of YenApr. 1, 2003 – Sept. 30, 2003%
CustomerRas Laffan LNG Co., Ltd. 12,100

13.6

Apr. 1, 2002 – Mar. 31, 2003
Customer%Ras Laffan LNG Co., Ltd. 23,811

14.3

Amounts contained in these tables do not include consumption tax.

27

Appendix to Consolidated Financial Statements
Details of the changes in the Article 4. Accounting Principles, C. Important AccountingStandards for Allowances, (6) Allowances for Retirement Benefits are as follows. This is an
essential part of the six-month consolidated financial statements.
(changes are underlined)
Previous Consolidated SixMonth Period(From April 1, 2003 to
September 30, 2002)(5) Allowances for
retirement benefits
To prepare for employees’
retirement benefits based on
the projected amount of
obligations for retirement
benefits and pension assets
at the end of the interim
fiscal term, the Company
posts the amount calculated
that are identified as
occurring in the current
interim fiscal year.

Latest Consolidated SixMonth Period(From April 1, 2003 to
September 30, 2003)(6) Allowances for
retirement benefits
To prepare for employees’
retirement benefits, basedon the projected amount of
obligations for retirement
benefits and pension assets
at the end of the interim
fiscal term, the Company
posts the amount calculated
that are identified as
occurring in the current
interim fiscal year.

Regarding the difference atthe time of change inaccounting standards(12,123 million yen), an
average over 15 years is
processed as operating
expenses, one half of whichis assigned to the interim
fiscal term.

Regarding the difference atthe time of change inaccounting standards(12,123 million yen), an
average over 15 years is
processed as operating
expenses, one half of whichis assigned to the interim
fiscal term.

Actuarial differences at
Chiyoda are processed as
operating expenses from thesubsequent consolidated
fiscal year, based on the“fixed amount method” andusing a set number of years(12 years) equal to or lessthan the average remaining
period of employment for
employees working at thetime that the difference
occurred. One half of theyear’s losses are assigned tothe current interim fiscal
term.

Actuarial differences at
Chiyoda are processed as
operating expenses from thesubsequent consolidated
fiscal year, based on the“fixed amount method” andusing a set number of years(10 years) equal to or lessthan the average remaining
period of employment for
employees working at thetime that the difference
occurred. One half of theyear’s losses are assigned tothe current interim fiscal
term.

(additional information)(additional information)

For actuarial difference,since the average remaining
period of employment for
employees has dropped
below 13 years, the fixed
number of years forprocessing of operating

For actuarial difference,since the average remaining
period of employment for
employees has dropped
below 12 years, the fixed
number of years forprocessing of operating

Previous Fiscal Year (FromApril 1, 2002 to March 31,
2003)(6) Allowances for
retirement benefits
To prepare for employees’
retirement benefits, theCompany posts an amountcalculated based on the
projected amount of
obligations for retirement
benefits and pension assets
at the end of the current
interim fiscal year.
Regarding the difference atthe time of change inaccounting standards(12,123 million yen), an
average over 15 years is
processed as operating
expenses.
Actuarial differences at
Chiyoda are processed as
operating expenses from thesubsequent consolidated
fiscal year, based on the“fixed amount method” andusing a set number of years(12 years) equal to or lessthan the average remaining
period of employment for
employees working at thetime that the difference
occurred.
(additional information)
For actuarial difference,since the average remaining
period of employment for
employees has dropped
below 13 years, the fixed
number of years forprocessing of operating
expenses based on the“fixed amount method” waschanged to 12 years as ofthe end of the consolidated
interim fiscal term from 13
years used at the end of thelast fiscal year.

expenses based on the“fixed amount method” waschanged to 12 years as ofthe end of the consolidated
interim fiscal term from 13
years used at the end of thelast fiscal year.

expenses based on the“fixed amount method” waschanged to 10 years as ofthe end of the consolidated
interim fiscal term from 12
years used at the end of thelast fiscal year.

This change will have only aslight effect on operating
profit, ordinary profit, profit
before income taxes andminority interests. In
addition, information
concerning the effect uponsegment information iscontained in the Segment
Information section.

This change will have only aslight effect on operating
profit, ordinary profit, profit
before income taxes andminority interests. In
addition, information
concerning the effect uponsegment information iscontained in the Segment
Information section.

This change will have only aslight effect on operating
profit, ordinary profit, profit
before income taxes andminority interests. In
addition, information
concerning the effect uponsegment information iscontained in the Segment
Information section.