Translation

February 8, 2011

Consolidated Financial Results
for the Third 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: February 14, 2011
(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated performance for the Third quarter of the fiscal year ending March 31,
2011 (from April 1, 2010 to December 31, 2010)(1) Consolidated operating results (cumulative)
Net sales

Operating income

Millions of yen
3Q ended December 31,
2010
3Q ended December 31,
2009(Percentages indicate year-on-year changes.)% Millions of yen

Ordinary income

Net income% Millions of yen% Millions of yen%

184,314 (16.7)

12,897-

10,653

353.3

5,427

860.6

221,310 (35.7)(525)-2,349(63.6)

565(83.5)Net income per share

3Q ended December 31,
2010
3Q ended December 31,
2009

Fully diluted net
income per share

Yen

Yen

20.94-2.18

2.18(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of December 31,
2010

331,696

152,93346.0

588.23As of March 31, 2010

328,174

149,25345.3

573.61

Reference: Equity

As of December 31, 2010:

152,420 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-endYen
Yen
Yen
Fiscal year endedMarch 31, 2010
Fiscal year ending
March 31, 2011
Fiscal year ending
March 31, 2011
(Forecast)
Note: Revision of the forecast in the Third quarter of the fiscal year ending March 31, 2011: None

3.

Annual

Yen

Yen

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
Millions ofyen

Fiscal year ending
March 31, 2011%

240,000 (23.3)

Net income pershare

Operating income

Ordinary income

Net income

Millions ofyen%Millions ofyen%Millions ofyen%

Yen

16,000 840.0

13,000

168.7

4,000

35.4

15.43

Note: Revision of the forecasts in the Third quarter of the fiscal year ending March 31, 2011: None

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 quarterly
consolidated 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 December 31, 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 December 31, 20101,204,834 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 Third quarter of the fiscal year ending March 31, 2011
259,185,548 shares
For the Third quarter of the fiscal year ended March 31, 2010
259,330,800 shares* 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 bereasonable. Actual business and other results may differ substantially due to a number of factors.

–3–5.

Qualitative Information related to Consolidated Performance(1) Qualitative Information on Business Performance
During the cumulative third quarter of the current consolidated fiscal year, the market environment
surrounding the Chiyoda Group was characterized by the realization of large-scale investment projects invarious locales against the backdrop of growth in future oil and gas demand. At the same time, however, thebusiness was affected by the continuing appreciation of yen, and the Group was exposed to sharpcompetition from major contractors.
Given these circumstances, the Chiyoda Group continued to focus on activities aimed at securing orders for
projects that enable the Group to take maximum advantage of its technological superiority. The Chiyoda
Group also worked to execute backlog projects, including construction work on an LNG (Liquefied NaturalGas) plant in Papua New Guinea, and completed Qatargas LNG Plant Trains 6 and 7.
Consolidated new contracts for the cumulative third quarter of the current consolidated fiscal year amountedto ¥153.503 billion (year-on-year decrease of 59.4 %), while the consolidated backlog of contracts
amounted to ¥473.413 billion (year-on-year decrease of 17.9%).
Consolidated net sales amounted to ¥184.314 billion (year-on-year decrease of 16.7%), operating income
amounted to ¥12.897 billion (operating loss of ¥0.525 billion for the same cumulative quarter in the priorconsolidated fiscal year) and ordinary income amounted to ¥10.653 billion (year-on-year increase of353.3%). Net income for the cumulative consolidated third quarter amounted to ¥5.427 billion (year-onyear increase of 860.6%).
A summary of the operating results for the engineering business, which is the Chiyoda Group’s main
business segment, is provided below.
(Natural Gas, Electric Power)
Overseas, the Chiyoda Group continued to execute EPC (Engineering/Procurement/Construction) activities
for an LNG plant in Papua New Guinea and LNG/gas processing plants in Qatar. It also continued basic
design services for a floating LNG plant in Brazil and for other projects and focused on business activities
to secure the same kind of orders for new projects. In addition, the Group’s subsidiary in Qatar is providingEPCm (Engineering/Procurement/Construction management) activities under a long-term service contract
for remodeling and renovation projects at the LNG/gas processing plants constructed by the Chiyoda Group,and developing business operations to provide similar services for other LNG/gas processing plants in Qatar.
Domestically, the Chiyoda Group proceeded smoothly with the execution of existing contracts, including
construction work for four LNG receiving terminal projects in Niigata, Okayama and Fukuoka prefectures.
(Petroleum, Petrochemicals, Gas Chemicals)
Overseas, the Chiyoda Group directed its concerted efforts toward investment plans for refinery projects in
the Middle East and Southeast Asia. We engaged ourselves in diligently executing an EPC project for aheavy oil cracking unit in Saudi Arabia. In Singapore, the Group initiated EPCm activities for adesulfurization plant which the Group had executed the basic design work as well as proceeding EPC
activities for a tank terminal. We aim to drive our global operations by strengthening the group companies
through execution of these projects.
On the domestic front, the movement for refinery restructuring is accelerating which follows the law
enacted in 2009 entitled “Sophisticated Methods of Energy Supply Structures” for enhancement of energy
supply systems. Therefore, projects for reinforcing heavy oil cracking capacities and facilities integration
and/or demolition are undertaken. Against this background, the Group is developing business operations
for projects following clients’ needs for enhancement of efficiency and competitiveness of refineries, andthe reduction of energy consumption. In addition, from an execution perspective, the Group proceeded asplanned with efforts such as HS-FCC (High Severity Fluid Catalytic Cracking) semi-commercial unit
construction work (for fiscal year 2010) and a cooperative project for hydrogen within an industrialcomplex.

–4–

(General Chemicals, Industrial Machinery, Environment, and Other)In the General Chemicals, Industrial Machinery and Environment sector the Chiyoda Group is smoothly
executing construction works for a plant in Malaysia to produce polycrystalline silicon, a basic material forphotovoltaic cells, and for a facility in Japan related to lithium ion batteries. The Group continues to aim atsecuring new orders mainly for Japanese companies advancing to overseas backed up by appreciation ofyen, and orders related to low carbon technology field.
In the pharmaceutical field, the Chiyoda Group executed basic design works for biotechnology based
medicine (antibody/vaccine) and for highly bioactive pharmaceuticals such as anti cancer drugs. The Groupaggressively pursued sales activities in response to increasing investment demands in this field.
(Note) See Page 10 for more information about segment New Orders, Revenues, and Contract Backlog.

(2) Supplement
i. The forecasts for the financial results of current fiscal year released on November 11, 2010 remainunchanged. The Chiyoda Group estimates that the consolidated New Contracts for the current fiscal year
will be ¥240.0 billion.
ii. Chiyoda Corporation decided to forward its office integration plan in the board meeting held in December
2010. This decision is in line with the Mid-term Management Plan announced on May 13, 2009, which
mentions our investment plan for “information technology, office and other infrastructure to strengthen
our management foundation”. As a result of this decision, the Chiyoda Group incurred extraordinary lossesof ¥3,955 million regarding the office integration, out of which ¥3,409 million for non-recurring
depreciation on tangible assets to be disposed and ¥545 million for termination of lease contracts.

–5–6.

Consolidated quarterly financial statements(1) Consolidated balance sheets(Millions of yen)
As of December 31, 2010

As of March 31, 2010
(Summary)

21,19243,00256,15951,31893,841

96,841

15,214

7,283

79,863

69,91728,61022,357(2)(2)

294,879

290,719

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

5,569

8,042

Land

11,938

11,938Other, net

1,004

1,468

Total property, plant and equipment

18,513

21,450

4,785

5,142

Investment securities

8,557

7,855

Other

5,294

3,339

Allowance for doubtful accounts

(333)

(333)

Total investments and other assets

13,518

10,86136,81637,454

331,696

328,174

Intangible assetsInvestments and other assets

Total noncurrent assets
Total assets–6–(Millions of yen)
As of December 31, 2010

As of March 31, 2010
(Summary)

93,49789,523Liabilities
Current liabilities
Notes payable, accounts payable forconstruction contracts
Current portion of long-term loans payable
Income taxes payable
Advances received on uncompleted
construction contracts
Provision for warranties for completed
construction
Provision for loss on construction contracts

-4

1,766

4,675

51,941

48,168

3,911

4,486

518

4,427

Provision for bonuses

2,733

3,252

Other8,64211,421

163,013

165,960

Long-term loans payable

10,21410,000

Provision

2,924

2,428

Other

2,611

532

Total noncurrent liabilities

15,75012,960178,763

178,921

Capital stock

43,39643,396

Capital surplus

37,112

37,112Retained earnings

75,28070,759Total current liabilities
Noncurrent liabilities

Total liabilities
Net assets
Shareholders' equity

Treasury stock(1,281)(1,215)

Total shareholders' equity

154,507150,053

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

(132)

102

(164)

(156)

Foreign currency translation adjustment(1,789)(1,315)

Total valuation and translation adjustments(2,086)(1,369)512569

152,933

149,253

331,696

328,174

Minority interests
Total net assets
Total liabilities and net assets–7–(2) Consolidated statement of income(Millions of yen)
Third quarter ended December 31, 2009
(From April 1, 2009
to December 31, 2009)

Third quarter ended December 31, 2010
(From April 1, 2010
to December 31, 2010)

Net sales of completed construction contracts

221,310

184,314

Cost of sales of completed construction contracts

212,714

161,472

Gross profit on completed construction contracts

8,596

22,841

Selling, general and administrative expenses

9,121

9,943

Operating income (loss)(525)

12,897

Non-operating income
Interest income

843

466

Dividends income

972

374

Equity in earnings of affiliates

112

50

1,030

-

Foreign exchange gains
Real estate rent

108

100

Other

174

196

3,241

1,188

188

192

Foreign exchange losses

-

3,082

Rent expenses on real estates

7170

Other

105

87

Total non-operating expenses

366

3,432

2,349

10,653

Surrender value of insurance-

109

Total extraordinary income-

109

Total non-operating income
Non-operating expenses
Interest expenses

Ordinary income
Extraordinary income

Extraordinary loss
Office integration expenses
Loss on adjustment for changes of accounting
standard for asset retirement obligations

-

3,955

-

146

Total extraordinary losses

-

4,101

Income before income taxes and minority
interests

2,349

6,661

Income taxes-current

2,740

4,571

Income taxes-deferred(994)(3,294)

Total income taxes

1,746

1276

Income before minority interests

-

5,385

Minority interests in income (loss)

38

(42)

Net income

565

5,427

–8–

(3) Consolidated statement of cash flows(Millions of yen)
Third quarter ended December 31, 2009 Third quarter ended December 31, 2010
(From April 1, 2009
(From April 1, 2010
to December 31, 2009)
to December 31, 2010)

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

2,349

6,661

Depreciation and amortization

1,530

1,909

-

3,955-(3,906)

Interest and dividends income(1,816)(841)

Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in costs on uncompleted construction
contracts

3,858

4,997230(7,936)

Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in advances received on uncompleted
construction contracts
Decrease (increase) in jointly controlled asset of joint
venture(10,869)

4,153(20,732)

3,812

29,499(9,945)

Other, net

1,358(6,890)

Subtotal

5,408(14,024)

Interest and dividends income received

1,263

482

Office integration expenses
Increase (decrease) in provision for loss on construction
contracts

Interest expenses paid(192)(186)(7,477)(7,469)(998)(21,197)

Payments into time deposits

(528)

(36)

Purchase of property, plant and equipment

(752)

(776)

Purchase of intangible assets
Purchase of investment securities(715)-(634)
(961)

(388)

-

15

53

(2,369)(2,355)

Proceeds from long-term loans payable-

214

Repayment of long-term loans payable

(14)

(4)

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

Purchase of investments in subsidiaries
resulting in change in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities

Proceeds from issuance of common stock7-(1,939)(905)

Cash dividends paid to minority shareholders

(7)

(9)

Other, net

(89)

(76)

(2,042)

(782)

(6)

(511)

Net increase (decrease) in cash and cash equivalents(5,417)(24,846)

Cash and cash equivalents at beginning of period

135,536

139,790

Increase in cash and cash equivalents from newly
consolidated subsidiary290-

130,409

114,943

Cash dividends paid

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

Cash and cash equivalents at end of period–9–7.

Production, Contracts and Sales (Consolidated)
Millions of Yen
Apr. 1, 2010 —December. 31, 2010
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

28,437
38,110107
35,19735,5568,369
3,386
149,165

18.5
24.8
0.1
22.9
23.2
5.5
2.2
97.2

71,09932,97680
39,874
14,86015,714
5,516
180,122

38.6
17.9
0.0
21.6
8.1
8.5
3.0
97.7

227,173
127,605
611
48,25136,373
14,50418,303472,824

48.0
26.9
0.1
10.2
7.7
3.1
3.9
99.9

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

4,338

2.8

4,192

2.3

588

0.1

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

77,47576,028
153,503

50.5
49.5
100.0

87,136
97,178184,314

47.3
52.7
100.0

159,101
314,312473,413

33.6
66.4
100.0

Millions of Yen
Apr. 1, 2009 December. 31, 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 Engineering251,552
13,753
156
51,411
11,13323,293
22,811
374,111

66.6
3.6
0.0
13.6
3.0
6.2
6.0
99.0

73,317
40,101
214
70,50820,667
1,769
10,840217,419

33.1
18.1
0.1
31.9
9.3
0.8
4.9
98.2

312,080
141,004
788
64,145
11,34823,25923,034575,661

54.2
24.5
0.1
11.1
2.0
4.0
4.0
99.9

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

3,664

1.0

3,890

1.8

646

0.1

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

71,511
306,264377,775

18.9
81.1
100.0

106,473
114,836
221,310

48.1
51.9
100.0

180,336395,971
576,308

31.3
68.7
100.0

Note: The backlog of contracts for the nine months ended December 31, 2010 includes a decrease due to changes inconstruction contracts acquired in prior fiscal years, an increase due to adjustments in new contract amounts, and anincrease due to foreign exchange translation adjustments.

– 10 –