Chiyoda Corporation (6366)
Consolidated Financial Results for the nine months Ended December 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 Nine Months Ended December 31, 2019
February 4, 2020
Company name:
Listing:
Stock code:
URL:
Representative:
Inquiries:TEL:

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

Scheduled date to file Quarterly Report: February 4, 2020
Preparation of Quarterly Supplementary Explanation Material: Yes
Quarterly Financial Results Presentation Held: Yes (for Analysts and Institutional Investors)(Millions of yen with fractional amounts discarded, unless otherwise noted)
1. Consolidated performance for the nine months ended December 31, 2019
(Percentages indicate year-on-year changes)(1) Consolidated operating results
Profit attributable to
Revenue
Operating income
Ordinary income
owners of parent
Millions ofMillions ofMillions ofMillions
of
%
%
%
%
yen
yen
yen
yen
For the nine months
ended December 31,
272,667(10.9)
24,536 －20,877 －16,867 －2019
For the nine months
ended December 31,
306,101(20.7)(107,790) －(107,045) －(128,151) －2018
Note: Comprehensive Income: the nine months ended December 31, 2019,
20,716 million yen
the nine months ended December 31, 2018, (126,441) million yen

For the nine months
ended Dec. 31, 2019
For the nine months
ended Dec. 31, 2018

Net income per
share
Yen

Fully diluted net
income per share
Yen

61.08

23.19

(494.86)－(2) Consolidated financial position
Total assets
Net assets
Equity ratio
Millions of yen
Millions of yen%
403,005
31,286
As of December 31, 2019
7.6
352,341(59,154)
As of March 31, 2019(17.1%)
Reference: Equity
As of December 31, 2019:30,803 million yen
As of March 31, 2019:(60,114) million yen
2. Cash dividends
Record date
FY ended March 31, 2019
FY ending March 31, 2020
FY ending March 31, 2020

Cash dividends per shareFirst quarter Second quarter Third quarter Fiscal year-end
Yen
Yen
Yen
Yen
0.00
-

Annual
Yen
0.00

0.00

0.00

(Forecast)
Note: Revision to the latest forecast announcement 2019: None

Chiyoda Corporation (6366)
Consolidated Financial Results for the nine months Ended December 31, 2019

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2020 (from April 1, 2019 toMarch 31, 2020)(Percentages indicate year-on-year changes)
attributable to Net income
Revenue
Operating income Ordinary income Profit
owners of parent per share
Millions of yen% Millions of yen % Millions of yen % Millions of yen %YenFiscal year ending
390,000 14.1
25,000 20,000 15,000 51.84
March 31, 2020
Note: Revision to the latest forecast announcement: February 3, 2020
4. Others(1) Changes in Significant Subsidiaries during the Period (changes in specified subsidiaries accompanying
changes in the scope of consolidation): None
(2) Adoption of Specified Accounting Methods for the Preparation of Quarterly Consolidated Financial
Statements: None
(3) Changes in Accounting Policies and Accounting Estimates / Restatements
a. Changes in accounting policies due to revisions of accounting standards, etc.: Yes
b. Changes in accounting policies other than a. above: Nonec. Changes in accounting estimates: None
d. Restatements: None
(4) Number of issued shares (common stock)a. Total number of issued shares at the end of the period (including treasury stock)
As of December 31, 2019
260,324,529 shares
As of March 31, 2019
260,324,529 sharesb. Number of treasury stock at the end of the period
As of December 31, 2019
1,357,437 shares
As of March 31, 2019
1,357,156 sharesc. Average number of shares during the period
For the nine months ended December 31, 2019258,967,204 shares
For the nine months ended December 31, 2018258,967,536 shares*Presentation of Implementation Status of Quarterly Review Procedure
The review procedure of quarterly financial statements based on the Financial Instruments and Exchange Law
has not been completed at the time of the disclosure of these Consolidated Financial Statements.
*Proper use of earnings forecasts, and other special directions
The forward-looking statements, including earnings forecasts, contained in these materials are based on
information currently available to the Company and on certain assumptions deemed to be reasonable. Actual
business and other results may differ substantially due to a number of factors.
Dividend Status of Class A SharesClass A Share
Record dateFiscal year ended
March 31, 2019
Fiscal year ending
March 31, 2020
Fiscal year ending
March 31, 2020 (Forecast)First quarter
Yen-

Cash dividends per share

Second quarter
Yen-

Third quarter
Yen-

Fiscal year-end
Yen

Annual

-

-

0.0

Yen

0.0

Chiyoda Corporation (6366)
Consolidated Financial Results for the nine months Ended December 31, 2019

Table of Contents for the appendices
1.

2.

3.

Qualitative Information Related to Consolidated Performance2(1)

Qualitative Information on Business Performance2(2)

Financial Information on Business Performance4(3)

Outlook for the Next Fiscal Year

4

Consolidated quarterly financial statements

5(1)

Consolidated balance sheets

5(2)

Consolidated statement of income and comprehensive income

6(3)

Notes on Consolidated Quarterly Financial Statements

9

Production, Contracts and Revenue

10Chiyoda Corporation (6366)
Consolidated Financial Results for the nine months Ended December 31, 2019

1. Qualitative Information Related to Consolidated Performance(1) Qualitative Information on Business Performance
The price of oil remained relatively stable until the third quarter of this fiscal year with only temporary
increases due to factors such as geopolitical instability in the Middle East. In the Liquefied Natural Gas(LNG) market, customers have been considering Final Investment Decisions (FID) for new large-scale
projects, reflecting the continued demand for LNG, especially in the developing world.
The Group continues to execute large-scale LNG projects worldwide. In the USA, the first and second trainsof both Cameron LNG and Freeport LNG commenced commercial operation and production respectively
and the engineering, procurement and construction (EPC) phase of the Golden Pass LNG project isunderway. Elsewhere, Chiyoda is developing an EPC proposal for the North Field Expansion Project in
Qatar, comprising four (4) trains with production capacity of 7.8 million tons per annum.
EPC works are also ongoing on the world's largest battery storage system along with projects in renewableenergy, pharmaceuticals and life sciences.
Chiyoda is progressing a new business of area of digital technology innovation and AI through thedevelopment of AI technology that improves the productivity and reliability of existing customer plants anddigital technology to improve EPC management and work efficiency.
Chiyoda’s new medium-term management plan: “Chiyoda’s Revitalization Plan – Initiatives for Revitalizationand the Future” launched in May 2019, includes company reorganization, business reform initiatives and a
newly formed risk management structure. In July the same year, a new Digital Transformation Division was
created and in October Chiyoda established a Frontier Business Division to redefine the value of engineering.
Chiyoda now provides business solutions in the Environment & Energy, Sustainability and Life Sciencefields.
Shareholder Equity increased through a third party allocation of shares, valued at JPY 70 billion, toMitsubishi Corporation in July 2019.
On consolidated basis, for the third quarter of the fiscal year ending March 31, 2019, New Orders amounted
to 140,027 million yen (down 64.1% YoY), Backlog to 873,930 million yen (down 14% from last FY) and
Revenues to 272,667 million yen (down 10.9% YoY). Operating income came to 24,536 million yen(compared with previous quarter’s consolidated operating loss of 107,790 million yen), Ordinary income
amounted to 20,877 million yen (compared with previous quarter’s consolidated ordinary loss of 107,045
million yen) and Profit attributable to owners of parent came to 16,867 million yen (compared with previous
quarter’s consolidated loss attribute to owners of parent of 128,151 million yen).
Reportable engineering business activities are summarized below:
 Energy
LNG / Gas
【Overseas】
Chiyoda is in the EPC phase on projects in Australia, USA, Indonesia and Mozambique. The first and second
trains of both Cameron LNG and Freeport LNG commenced commercial operation and LNG production
respectively and the third trains are progressing as planned. The EPC phase of Golden Pass LNG is
progressing. The company is preparing an EPC proposal for the North Field Expansion project in Qatar,comprising 4 x 7.8 million ton/annum trains.
Also in Qatar, we are in the EPC phase of a helium production facility and are modifying and revamping a
Chiyoda constructed LNG/gas processing plant.
【Japan】
Renovations and modifications are underway on Chiyoda constructed LNG receiving terminals and seismic

2

Chiyoda Corporation (6366)
Consolidated Financial Results for the nine months Ended December 31, 2019upgrades are progressing of facilities under the Basic Act for National Resilience.
Refinery/Petrochemical/Metal【Overseas】
We are executing a large-scale ethylene plant EPC project on the Gulf Coast in the USA. In Malaysia, weare executing for a Residue Fluid Catalytic Cracking (RFCC) plant EPC plus Commissioning (EPCC) project
and EPC on a petrochemical tank terminal EPC project. In Southeast Asia the Group is executing refineryand petrochemical plant EPC projects.
【Japan】
The Group is executing EPC for offsite construction and renovation of existing refining facilities to reduce
sulfur content in bunkering fuel according to new 2020 regulations, as well as other revamping andmodification work.
 Environment
Pharmaceutical/Biochemistry/General Chemistry
Chiyoda has completed the EPC phase of a middle molecule pharmaceutical production facility and is
executing EPC for a synthetic raw materials for medicines plant, functionalized chemical facilities and ahydrogenated petroleum resin production plant.
Chiyoda is collaborating with MIRAI Co. Ltd, a major production and administration company promoting the
introduction of commercial facilities, on a vegetable growing facility and has been awarded by Qatar
University for a pilot vegetable factory project.
Environment/New Energy/Infrastructure【Overseas】
The Company has implemented its Thoroughbred 121 (CT-121) Process to flue gas desulfurization facilities
on existing coal fired plants in India.
【Japan】
In the environment field, Chiyoda is executing EPC for fuel gas desulfurization facilities on existing coal fired
plants and CO2 separation unit demonstration facilities. In the new energy field, Chiyoda is executing theworld’s largest Battery Energy Storage System Project, photovoltaic (mega solar) facilities and the largest
capacity biomass firing plant in Japan. We are also considering participating in a floating offshore wind farm,
an area where we anticipate further opportunities.
Work is underway at a demonstration project commercializing a hydrogen supply chain through the“Advanced Hydrogen Energy Chain Association for Technology Development”, an organization establishedjointly with Mitsubishi Corporation, Mitsui & Co., Ltd. and Nippon Yusen (NYK Line). Construction of thehydrogenation plant in Brunei Darussalam and the complement dehydrogenation plant in Japan iscompleted and test operation is scheduled for 2020.
 Digital Technology
The Group aims to develop a new business area utilizing digital technology, implementing AI technologies
on plants to improve productivity in a tie-up agreement with GRID Inc. Chiyoda has developed AI to optimize
the productivity of PT. Donggi-Senoro LNG (Indonesia) plants aiming to introduce the technology worldwide.
Chiyoda has signed a Memorandum of Understanding (MoU) with Abu Dhabi Gas Liquefaction Co. (UAE)to provide state-of-the-art digital technologies for their LNG Plant, targeting early introduction of digitaltechnologies to improve plant reliability.
Also in the field of digital technology innovation, we are implementing the internal "Target 20" campaign,improving EPC management, work efficiency and corporate management practices. Chiyoda applies
Advanced Work Packaging (AWP) to enhance project planning and control on current and future projects.

3

Chiyoda Corporation (6366)
Consolidated Financial Results for the nine months Ended December 31, 2019

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

(3) Outlook for the Next Fiscal YearThe full-year consolidated financial forecast for the Fiscal Year ending March 31, 2020, as announced on
May 9, 2019 has been revised on November 1, 2019 and on February 3, 2020. For the latest revision,please refer to “Notice of Revisions to the Forecast of Consolidated Results” announced on February 3,
2020”. The anticipated foreign exchange rate remained JPY 105/ USD.

4

Chiyoda Corporation (6366)
Consolidated Financial Results for the nine months Ended December 31, 2019

2. Consolidated quarterly financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31, 2019

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts
receivable from completed
construction contracts
Costs on construction contracts inprogress
Accounts receivable - other
Jointly controlled assets of joint
ventureOther
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Land
Other, net
Total property, plant andequipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and otherassetsTotal non-current assets
Total assets

5

As of December 31, 201969,457

121,158

68,611

67,9707,494

12,90965,94573,123110,967

98,0395,707(1,254)
326,929

6,528(1,243)
378,486

5,461
4,952
1,300

6,162
5,169
1,138

11,714

12,469

5,298

4,746

6,393
701
1,478
(174)
8,398

5,575
592
1,304
(170)

25,411
352,341

24,519403,005

7,302

Chiyoda Corporation (6366)
Consolidated Financial Results for the nine months Ended December 31, 2019(2)

Consolidated statement of income and comprehensive income
As of March 31, 2019

Liabilities
Current liabilities
Notes payable, accounts payable
for construction contracts
Current portion of long-termborrowings
Income taxes payable
Advances received on construction
contracts in progress
Provision for warranties forcompleted construction
Provision for loss on construction
contracts
Provision for bonuses
Provision for business restructuring
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Provisions
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive
incomeValuation difference on availablefor-sale securities
Deferred gains or losses on hedges
Foreign currency translation
adjustment
Remeasurements of defined benefit
plans
Total accumulated othercomprehensive income
Non-controlling interests
Total net assets
Total liabilities and net assets

6(Millions of yen)
As of December 31, 2019

175,277

133,748

118

121

708

1,305

122,252

132,504372

390

67,63735,6163,011
1,825
21,300392,505

2,074
1,409
24,906
332,077

15,870
267
1,546
1,305
18,989411,495

35,778
245
1,452
2,164
39,641
371,719

43,396
37,112(139,956)(1,435)(60,882)

78,396
72,128(123,089)(1,435)26,000

(5)

21

(50)

(102)

4,045

926

728

767

4,802

960
(59,154)352,341482
31,286
403,005

6

Chiyoda Corporation (6366)
Consolidated Financial Results for the nine months Ended December 31, 2019

(Millions of yen)
Nine months ended
December 31, 2018

Nine months ended
December 31, 2019306,101

272,667

400,282

236,199(94,180)

36,468

13,61011,931(107,790)

24,536

2,106
409

2,097
200

162

205

169
2,848

142
2,645

173
1,797
132
2,102
(107,045)

531
5,036
735
6,304
20,877

112

363

112

363

382

－

382
(107,315)
10,306
10,49420,801(128,116)－
21,241
4,662
(109)
4,553
16,688(128,151)

16,867

Net sales of completed construction
contracts
Cost of sales of completed construction
contracts
Gross profit (loss) on completed
construction contracts
Selling, general and administrative
expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted
for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sales of shares ofsubsidiaries and associates
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current
assetsTotal extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controllinginterests
Profit (loss) attributable to owners ofparent

34

7

(178)

Chiyoda Corporation (6366)
Consolidated Financial Results for the nine months Ended December 31, 2019

(Millions of yen)
Nine months ended
December 31, 2018

Nine months ended
December 31, 2019

(128,116)

16,688

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

(97)

27

1,764

56

(183)

4,208

358

(197)

(166)

(66)

1,675
(126,441)

4,028
20,71693(185)(126,534)

8

20,901Chiyoda Corporation (6366)
Consolidated Financial Results for the nine months Ended December 31, 2019(3) Notes on Consolidated Quarterly Financial Statements(Notes on Assumptions for a Going Concern)
None(Notes on Significant Changes in the Amount of Shareholders’ Equity, if Applicable)
On July 1, 2019, Chiyoda has received a third-party allotment of capital increase from Mitsubishi Corporation.
As a result, the capital increased by 35,000 million yen and the capital reserve increased by 35,000 million
yen in the second quarter of the current consolidated cumulative period, and the capital increased to 78,396
million yen and the capital surplus at the end of the second quarter of the consolidated fiscal year
accumulated to 72,128 million yen.
(Changes in Accounting Policies)
Excluding U.S. subsidiaries, the Company has applied IFRS 16, “Lease” for overseas consolidated
subsidiaries, from the first quarter of the fiscal year ending March 31, 2020. The effects of the change haveminor impact on the business performance.
(ASU#2014-09 Revenue from Contracts with Customers)
The Company has applied ASU#2014-09. The effects of the change have minor impact on the businessperformance.

9Chiyoda Corporation (6366)
Consolidated Financial Results for the nine months Ended December 31, 2019

3. Production, Contracts and Revenue(Millions of yen)
Apr. 1, 2018－Dec. 31, 2018
Backlog ofcontracts(ratio)New
contracts(ratio)Revenue(ratio)303,598

728,094

139,432

272,071873,903(99.2%)(100.0%)(99.6%)(99.8%)(100.0%)43,814

198,061

193,336

56,589129,435

466,519(11.2%)(64.7%)(26.6%)(40.4%)(47.5%)(53.4%)

Gas Development/
Processing/Receiving

12,237

1,464

14,553

5,073

2,883

15,581(3.1%)(0.5%)(2.0%)(3.6%)(1.1%)(1.8%)

Refinery/Petrochemical/
Metal

205,999

44,215

312,482

41,97786,713261,824(52.8%)(14.4%)(42.9%)(30.0%)(31.8%)(29.9%)

Pharmaceutical/Biochemistry/
Chemical

18,14725,782

28,41012,28917,611

18,357(4.7%)(8.4%)(3.9%)(8.8%)(6.5%)(2.1%)

Environment/New Energy/
Infrastructure

102,019

28,390170,191

18,45328,464

106,633(26.1%)(9.3%)(23.4%)(13.2%)(10.4%)(12.2%)Engineering
LNG Plant

OthersOther Business
Total
Domestic
OverseasNewcontracts(ratio)Revenue(ratio)387,922(99.4%)

Apr. 1, 2019－Dec. 31, 2019
Backlog ofcontracts(ratio)

5,704

5,684

9,119

5,048

6,963

4,986

(1.5%)(1.9%)(1.2%)(3.6%)(2.5%)(0.6%)

2,502

2,502

－)

595

595

－

(0.6%)(0.8%)(－)(0.4%)(0.2%)( －)390,425

306,101

728,094

140,027

272,667

873,903(100.0%)(100.0%)(100.0%)(100.0%)(100.0%)(100.0%)179,800

74,640268,086

70,587

95,214

192,266(46.0%)(24.4%)(36.8%)(50.4%)(34.9%)(22.0%)

210,624

231,461

460,008

69,440177,452

681,636(54.0%)(75.6%)(63.2%)(49.6%)(65.1%)(78.0%)

Note1:The backlog of contracts includes a decrease due to changes in construction contracts acquired inprior fiscal years, and an increase due to foreign exchange translation adjustments.

Note2:The total amount of the above table does not include consumption tax.

10