Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

The presentation was held in Japanese.

August 6, 2021

This document is a translation/summary

IR, PR & CSR Section

for reference only.

Corporate Services Department
Chiyoda Corporation

Summary of a Q&A session following the Presentation of theFirst Quarter Financial Results for Fiscal Year Ending March 31, 2022
The following is a summary of a Q&A session following the presentation (telephone conference) ofChiyoda Corporation’s (Chiyoda) financial results for the first quarter of fiscal year ending March 31,2022, released on August 2, 2021.

1Question

AnswerWhy is gross profit margin lower

In the global environment field, revenue has beenthan for the same period last year? primarily derived from projects awarded following theRevitalization Plan and secured profits are as a result ofcomprehensive risk and profit management.
In the energy field, gross profit margin has been affectedby COVID-19, with some projects being awarded prior to
the Revitalization Plan.
2

Why is a breakdown of gross The breakdown of the 6.2 billion JPY gross profit is:profits

fromprojects

awarded 1.

1.0 billion JPY from projects awarded before thebefore and after the Revitalization

Revitalization Plan.

Plan not shown in the presentation 2.

5.2 billion JPY from projects awarded after thematerial?

Revitalization Plan.
The presentation material does not show the breakdownof gross profit from projects awarded before and after theRevitalization Plan because;
1.

Chiyoda updated the Revitalization Plan in May
2021 and totaled the quantitative progress of the firsttwo years of the Plan.

2.

Showing the breakdown is less important after the1Chiyoda Global HeadquartersMinato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

Question

Answercontribution to profits from the NFE LNG project in
Qatar following its award and profit from projects
after the Revitalization Plan accounts for more than
80% of gross profit.

3

Please explain the difference

The first quarter balance sheet for this fiscal year shows

between the first quarter balanceordinary status reflecting the progress of projects.

sheet for this fiscal year and theComparing amounts as of the end of March and the end

fourth quarter balance sheet forof June, cash and deposits decreased 28.9 billion JPY

the last one.

and jointly controlled assets of the JV increased 16.6
billion JPY, a balance of negative 12.3 billion JPY. This
corresponds to the 11.4 billion JPY decrease inoperating liabilities.
Newaccounting

rulesof‘AccountingStandards

Regarding Revenue Recognition’ have been applied forthis fiscal year and some accounting titles have beenchanged but mean the same. For example, ‘advances
received on construction contracts in progress’ are now
described as ‘contract liabilities’.
4Why

didincrease?

accounts

payable Accounts payable increased corresponding toextraordinary losses related to discussions andarbitration with the client on the Ichthys LNG project.
Chiyoda recognized extraordinary losses by reevaluating rights and obligations from disputes with theclient and considering the current status of discussions.
As a result, shareholders’ equity decreased. Chiyoda
posted unrealized cost as accounts payable in liabilities
assuming that issues would be collectively resolved.
Accounts payable will decrease according to realization
or extinction of unrealized cost.
There is no cash outflow; extraordinary losses arerecognized as a valuation of cost.

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Chiyoda Global Headquarters
Minato Mirai Grand Central Tower
4-6-2, Minatomirai, Nishi-ku,
Yokohama 220-8765, Japanwww.chiyodacorp.com/en

Question
5AnswerWhy did provision for loss on Provision for loss on construction contracts increased asconstruction contracts increase?

a precaution against the possible impacts of COVID-19
on ongoing projects.

6What is the current status of the Chiyoda will always prioritize the health and safety ofTangguh LNG project in Indonesia, our stakeholders and, in collaboration with clients, willconsidering the spread of COVID- continue executing projects while taking all necessary
19?

precautions to mitigate the effects of the pandemic,
including meticulous site worker management.
Chiyoda is continuing ‘force majeure’ contract provision
discussions with clients to minimize COVID-19 cost andschedule impacts and does not anticipate any
unforeseen effects.

-EndPlease address inquiries to:
IR, PR & CSR Section, Corporate Services Department: Tel. +81-45-225-7734

Note: Some additions and corrections have been made to simplify the content for readers. Any
projections included in these materials are based solely on information available at the time thispresentation was prepared. It is possible that actual results may vary significantly from the projections
due to a number of risk factors such as economic conditions. The results projected here should not
be construed in any way as being guaranteed by the Company. Investors are recommended not todepend solely on these projections for making investment decisions.

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