Chiyoda Corporation (6366)
Consolidated Financial Results for the Nine Months Ended December 31, 2021

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, 2021
February 2, 2022
Company name:
Listing:
Stock code:
URL:
Representative:
Inquiries:TEL:

CHIYODA CORPORATION
Second Section of the Tokyo Stock Exchange
6366
http://www.chiyodacorp.com/en
Masaji Santo, President& COO
Masaru Akiyama, Manager, Accounting Department+81-45-225-7281

Scheduled date to file Quarterly Report: February 10, 2022
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 nine months ended December 31, 2021
(1) Consolidated operating results(Percentages indicate year-on-year changes)

Net sales
Millions of yen

For the nine months ended
December 31, 2021
For the nine months ended
December 31, 2020
Note: Comprehensive Income:Operating income

Profit attributable toowners of parent

Ordinary income%

Millions of yen%

Millions of yen%

Millions of yen

217,098 (10.7)

8,276

36.5

8,759

41.1

(13,658)

242,976 (10.9)

6,064 (75.3)

6,208 (70.3)

the nine months ended December 31, 2021:
the nine months ended December 31, 2020:
Net income per
share

Fully diluted net
income per share

Yen

Yen

(58.82)

-

18.89

6.63

For the nine months ended
December 31, 2021
For the nine months ended
December 31, 2020%-

6,467 (61.7)(17,577) million yen / (－)%
7,785 million yen / (62.4%)(2) Consolidated financial position
Total assets

Net assets

Millions of yen

As of December 31, 2021
As of March 31, 2021
Reference: Equity

Equity ratio

Millions of yen%

344,054
15,524
329,583
36,747as of December 31, 2021: 15,191 million yen
as of March 31, 2021:
36,399 million yen

4.4
11.0

2. Cash dividends
Cash dividends per share
Record date

First quarter

Second quarter

Yen

Third quarter

Yen

Yen

Fiscal year ended
March 31, 2021

－

－

－

Fiscal year ending
March 31, 2022

－

－

－

Fiscal year ending
March 31, 2022 (Forecast)Fiscal year-end－

Annual

Yen

Yen

0.00

0.00

－

Chiyoda Corporation (6366)
Consolidated Financial Results for the Nine Months Ended December 31, 2021

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2022
(from April 1, 2021 to March 31, 2022)(Percentages indicate year-on-year changes)

Net sales
Millions of yen

Operating income%

Millions of yen%

Profit attributable toowners of parent

Ordinary income

Net income
per share

Millions of yen%

Millions of yen

%

Yen

9,000

6.4

(14,000)-(62.17)

Fiscal year ending
300,000 (4.9)
11,000 56.8
March 31, 2022
Note: Revision to the latest forecast announcement 2021: None

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.:
b. Changes in accounting policies other than a. above:c. Changes in accounting estimates:
d. Restatements:

Yes
None
None
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, 2021
260,324,529 shares
As of March 31, 2021
260,324,529 sharesb. Number of treasury stock at the end of the period
As of December 31, 2021
1,357,766 shares
As of March 31, 2021
1,357,723 sharesc. Average number of shares during the period
For the nine months ended December 31, 2021
258,966,769 shares
For the nine months ended December 31, 2020
258,966,939 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
Cash dividends per share
Record date
First quarter Second quarter Third quarter Fiscal year-end
Yen
Yen
Yen
Yen
Fiscal year ended
March 31, 2021
Fiscal year ending
March 31, 2022
Fiscal year ending
March 31, 2022 (Forecast)

-

-

-

-

-

-

Annual
Yen

20.78

-

20.78

-

Chiyoda Corporation (6366)
Consolidated Financial Results for the Nine Months Ended December 31, 2021

Table of Contents for the appendices

1.

2.

3.

Qualitative Information Related to Consolidated Performance ................................................... 2(1)

Qualitative Information on Business Performance .............................................................. 2(2)

Financial Information on Business Performance ................................................................. 5(3)

Consolidated Financial Forecasts of the Fiscal Year........................................................... 5

Consolidated Quarterly Financial Statements ............................................................................ 6(1)

Consolidated Balance Sheets ............................................................................................. 6(2)

Consolidated Statement of Income and Comprehensive Income ........................................ 8

Production, Contracts and Sales .............................................................................................. 10

4. Others ...................................................................................................................................... 111

Chiyoda Corporation (6366)
Consolidated Financial Results for the Nine Months Ended December 31, 2021

1. Qualitative Information Related to Consolidated Performance(1) Qualitative Information on Business Performance
The future of the global economy under the COVID-19 pandemic is expected to remain unpredictable in thethird quarter of the fiscal year.
The Group prioritizes the health and safety of employees and stakeholders and we are executing ongoingprojects while cooperating with clients to promptly implement the required measures against the pandemic.
The business environment in which we operate is undergoing significant changes, including the acceleratingtransition to decarbonization/hydrogen energy, the increasing drive towards low-carbon and renewableenergy and the evolution of innovative digital technologies. Anticipating these changes, the Group prioritizes
developing these areas in the future. In May 2021 we updated our medium-term management plan
‘Revitalization for the Future’, under which we will reinvigorate existing businesses currently propelling ourearnings, while accelerating initiatives in new business areas.
While securing a reliable stream of income from existing businesses, we aim to strengthen new businesses
in growth areas, such as renewable energy, hydrogen, carbon cycling, energy management and life
sciences. By leveraging digital transformation to add value to our business model, our aim is to renew ourbusiness portfolio, ensure a stable income base, achieve sustainable growth and further enhance enterprisevalue.
On consolidated basis, for the 3rd Quarter of the fiscal year ending March 31, 2022, New Orders amounted
to 392,990 million yen (up 282.2% YoY), Revenues amounted to 217,098 million yen (down 10.7% YoY)
and Backlog amounted to 1,322,332 million yen (up 17.4% from last FY). Operating Income is 8,276 million
yen (up 36.5% YoY) and Ordinary income is 8,759 million yen (up 41.1% YoY). Extraordinary losses of
20,374 million yen are related to the ICHTHYS LNG project, resulting in a profit attributable to the ownersof the parent of negative 13,658 million yen (a profit of 6,467 million yen was recorded in the 3rd Quarter oflast FY).
The impact of COVID-19 varies according to the project and although its influence on the progress of someprojects has been recognized, most projects are progressing, with some realizing cost reductions andincreased profits. The figures provided have been estimated following current and reasonable assessmentsof the influence of COVID-19. Revenue and Cost of Completed Work have been recorded reflecting
assessments of total construction costs, the calculation base of construction progress.
Further information regarding reportable engineering business segments is presented below.
 Energy
LNG / Gas
【Overseas】
Chiyoda is executing the engineering, procurement and construction (EPC) phase of LNG plants in Qatar,
the USA, Indonesia and Nigeria. In Qatar, the EPC phase for the North Field East (NFE) Project, an
expansion of four LNG trains with capacities of 7.8 million metric tons per annum each, is underway and agroup company is engaged in renovating and repairing LNG/gas processing plants. In the USA, the Golden
Pass LNG project is also in the EPC phase. In Nigeria, we are providing reviews and other technical support
functions to our partner performing the engineering on an LNG project.
【Japan】
We are in the EPC phase of projects to reinforce, modify and repair existing LNG terminals previously
constructed by Chiyoda, construct new gas supply facilities for thermal power plants and have completed
earthquake and tsunami reinforcement EPC work.
Refinery/Petrochemical
Overseas, an ethylene plant on the Gulf of Mexico in the USA is mechanically complete and we are2Chiyoda Corporation (6366)
Consolidated Financial Results for the Nine Months Ended December 31, 2021

executing the EPC + commissioning (EPCC) phase for a residue fluid catalytic cracking (RFCC) plant in
Malaysia.
In Japan, we are working to improve the competitiveness of oil refineries, upgrading equipment andexamining compliance with the Basic Act for National Resilience. We have also completed work required
for existing facilities to meet sulfur content restrictions in bunker fuel for ships.
 Environment
Pharmaceutical/Biochemistry/General Chemistry
The EPC phase is underway on a recombinant protein vaccine production facility expansion project and the
addition of ancillary facilities for SHIONOGI & CO. Ltd, and the EPC phase for a biopharmaceuticalsubstance manufacturing plant is ongoing. Chiyoda will participate in a joint venture, established by Shionogi
Pharma Co. Ltd, to conduct contract development and manufacturing of active pharmaceutical ingredients(API’s) and intermediates, using Continuous Manufacturing (CM) technology to implement Chiyoda ’s
continuous flow synthesis technology.
In general chemistry, we are realizing carbon recycling as part of a collaboration project with industry,
government and academia to research and develop CO 2 capture technology, using CO2 as a raw material
to produce para-Xylene (PX). We are also conducting basic engineering for a client’s waste plastic recycling
business.
We are strengthening our capabilities in indoor vertical farming through a business alliance with MIRAI Co.
Ltd, a leading manufacturer and operator in the field, and are promoting the development of commercial
facilities.
Environment/New Energy/Infrastructure
Flue gas desulfurization (FGD) equipment is being deployed at coal-fired power plants in India as part ofthe country’s tightening of environmental regulations and Chiyoda’s thoroughbred 121 (CT-121) FGD
process has been installed in a number of plants.
In Japan, we are partially remodeling and providing operational support for a demonstration project toseparate, recover and store CO2 (carbon capture and storage (CCS)) from thermal power plant fuel gas andare in the EPC phase for flue gas desulfurization equipment installation in a coal-fired power plant.
In the carbon capture and utilization (CCU) field, we are collaborating with Blue Planet Systems Corporationand Mitsubishi Corporation to develop and commercialize technology to use the CO2 in exhaust gas in the
manufacture of aggregates as the raw material for concrete.
Chiyoda is executing the EPC phase for the world’s largest battery energy storage plant, a photovoltaic(mega solar) facility and Japan’s largest biomass power plant using wood pellets as fuel. We are also
considering entering the field of offshore wind farms, expected to grow into a sizeable market in the future.
Having entered into an MOU with the Port of Rotterdam Authority, Koole Terminals and Mitsubishi
Corporation to study the possibility of constructing an international hydrogen supply chain in Europe byimporting hydrogen on a commercial scale through the port of Rotterdam, we continue to leverage on ourleading position in SPERA hydrogenTM technology. Studies to realize a clean hydrogen supply chain in
Singapore also continue, in cooperation with Mitsubishi Corporation and Sembcorp Industries, aSingaporean integrated utilities and urban development firm.
In line with Japan’s development into a large-scale consumer of hydrogen, we will commence supplying
methylcyclohexane, manufactured at the Advanced Hydrogen Energy Chain Association for Technology
Development (AHEAD) facilities, for transportation into Japan by tanker for a demonstration project at an
ENEOS Co. Ltd refinery. The AHEAD facilities were constructed in Brunei Darussalam, as part of a hydrogen
supply chain demonstration project, under the aegis of the New Energy and Industrial Technology
Development Organization (NEDO), a Japanese national research and development agency. We are also
conducting studies on ammonia receiving equipment and hydrogen fuel supply.

3

Chiyoda Corporation (6366)
Consolidated Financial Results for the Nine Months Ended December 31, 2021

Chiyoda is collaborating with Qpinch of Belgium to develop a business to improve energy conservation andreduce CO2 emissions at industrial facilities by deploying chemical heat pump technology that facilitates theeffective use of waste heat. Chiyoda is also collaborating with GridBeyond of Ireland, use their platform todevelop a Virtual Power Plant (VPP) business that contributes to the growth of renewable energy and astable power supply by balancing electrical supply and demand in industrial facilities.
We have commenced the EPC phase of a copper smelting project in Indonesia, awarded in July 2021, andare in the executing EPC work for a polypropylene polymerization catalyst manufacturing plant in Japan.

Please refer to 3. ‘Production, Contracts and Sales’ for further details of New Contracts, Net Sales andContract Backlog, by segment.

Further information regarding our digital technology business is presented below.
We have established a new Chief Digital Officer (CDO) position, reporting directly to the President, toaccelerate company-wide digital transformation (DX), cultivate digital expertise in the development of adigital culture and pursue the following three initiatives:(a) Project Execution DX
Digitalize project execution to improve efficiency, strengthen risk management and enhance profitability.
We are sequentially implementing systems required to apply Advanced Work Packaging (AWP) on
major ongoing projects to enhance our EPC execution management capabilities. As part ofPlantStream Inc, a joint venture with Arent Inc, we are developing a revolutionary system that reduces
the number of space design processes, required in basic plant design, by approximately 80%, enabling
3D models to be created five times faster and are marketing the technology to plant owners and EPC
contractors around the world.
(b) Corporate Management DX
Strengthen corporate management through digitalization to improve business performance andfacilitate agile resource allocation while accommodating varying work styles. We are also leveraging
digital technologies to develop the remote working environment, deploying robotic process automation
to improve administrative efficiency and implementing electronic authentication and electronic contracts.
(c) DX Business
Enhance the value of engineering through digital AI technology, engineer the digital transformation of
our customer’s plant operations and accelerate the creation of new businesses. We are also expanding
EFEXISTM, a plant operations optimization solution that combines our engineering expertise with digital
AI technology and Mirai Fusion, a digital platform solution for industrial equipment and plants indevelopment with Cognite and Mitsubishi Corporation, for domestic and international marketing.

4

Chiyoda Corporation (6366)
Consolidated Financial Results for the Nine Months Ended December 31, 2021

(2) Financial Information on Business Performance(Assets)
Total assets increased by 14,471 million yen from the end of the last fiscal year, with a decrease of cash
and deposits of 19,690 million yen, notes receivable, accounts receivable from completed construction
contracts and contract assets of 9,830 million yen and others. Jointly controlled assets of joint ventures
increased by 36,094 million yen and costs on construction contracts in progress by 6,879 million yen.
(Liabilities)
Total liabilities increased by 35,693 million yen from the end of last fiscal year, with a decrease of notes
payable and accounts payable for construction contracts of 21,952 million yen and others. Accounts
payable increased by 34,003 million yen and contract liabilities by 30,618 million yen.
(Net assets)
Total Net Assets is 15,524 million yen, with a decrease in retained earnings of 17,879 million yen fromrecording a loss attributable to the owners of the parent and dividends paid.

(3) Consolidated Financial Forecasts of the Fiscal Year
There is no change from the consolidated financial forecasts for the fiscal year announced on July 30, 2021.
The assumed exchange rate of 111 yen per US dollar remains unchanged.

5Chiyoda Corporation (6366)
Consolidated Financial Results for the Nine Months Ended December 31, 2021

2. Consolidated Quarterly Financial Statements(1) Consolidated Balance Sheets(Millions of yen)
As of March 31, 2021

As of December 31, 2021

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivablefrom completed construction contracts
Notes receivable, accounts receivablefrom completed construction contracts,
and contract assets
Costs on construction contracts inprogress
Accounts receivable - other106,988

87,29948,527－－

38,698

8,767

15,646

77,261

76,457

Jointly controlled assets of joint venture

56,84592,939

Other

8,906

11,668

Allowance for doubtful accounts(1,405)(1,445)

Total current assets

305,891

321,264

Buildings and structures, net

5,255

4,892

Land

4,853

4,853

Other, net

1,317

1,003

Total property, plant and equipment

11,426

10,749

4,371

4,116

5,701

5,727

Retirement benefit asset

566

690

Deferred tax assets

394

97

Other

1,395

1,434

Allowance for doubtful accounts

(164)

(24)

Total investments and other assets

7,894

7,924

23,692

22,790329,583

344,054

Non-current assets
Property, plant and equipment

Intangible assets
Investments and other assets
Investment securities

Total non-current assets
Total assets

6

Chiyoda Corporation (6366)
Consolidated Financial Results for the Nine Months Ended December 31, 2021

(Millions of yen)
As of March 31, 2021
Liabilities
Current liabilities
Notes payable, accounts payable forconstruction contracts
Current portion of long-term borrowings
Accounts payable - other
Income taxes payable
Advances received on construction
contracts in progress
Contract liabilities
Provision for warranties for completed
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 available-forsale 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

7

As of December 31, 2021

115,187

93,236

747
4,200
638

652
38,203465

74,784－－105,403

823

3,247

34,44334,543

3,834
17
9,978
244,657

1,528
18
3,011
280,31145,000
239
761
2,178
48,178292,836

45,000
239
815
2,163
48,218328,529

15,014142
15,708(1,435)29,43015,014142(2,170)(849)
12,137

203

151

30
5,300

193
1,537

1,434

1,172

6,969

3,054

348
36,747
329,583333
15,524
344,054Chiyoda Corporation (6366)
Consolidated Financial Results for the Nine Months Ended December 31, 2021

(2) Consolidated Statement of Income and Comprehensive Income(Consolidated Statement of Income)(Millions of yen)

Nine months ended
December 31, 2020
Net sales of completed construction
contracts
Cost of sales of completed construction
contracts
Gross profit on completed construction
contracts
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted forusing equity method
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted forusing equity method
Foreign exchange losses
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on liquidation of subsidiaries andassociates
Gain on sale of shares of subsidiaries andassociates
Total extraordinary income
Extraordinary losses
Project related loss due to settlementswith customers
Loss on valuation of investment securities
Loss on liquidation of subsidiaries andassociates
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Loss attributable to non-controlling interests
Profit (loss) attributable to owners of parent

8

Nine months ended
December 31, 2021

242,976

217,098

227,507200,240

15,46816,857

9,403
6,064

8,581
8,276

714
387

201
314

14

－

－
221
1,337

806
143
1,466

629

656

－

191

469
94
1,193
6,208

－
135
983
8,759

－

215

413

－

413

215

－

20,374

－

92

－

87

－
6,622
4
152
157
6,464
(2)
6,467

20,553(11,579)
1,949
147
2,097
(13,676)(18)(13,658)

Chiyoda Corporation (6366)
Consolidated Financial Results for the Nine Months Ended December 31, 2021

(Consolidated Statement of Comprehensive
Income)(Millions of yen)
Nine months ended
December 31, 2020

Profit (loss)

Nine months ended
December 31, 2021

6,464

(13,676)

64

(52)

(5)

162

1,479

(3,780)

(97)

(262)

(119)

30

1,321

(3,901)

Comprehensive income

7,785(17,577)

Comprehensive income attributable toComprehensive income attributable toowners of parent
Comprehensive income attributable tonon-controlling interests

7,812(17,572)

(27)

(5)

Other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans,
net of tax
Share of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income

9Chiyoda Corporation (6366)
Consolidated Financial Results for the Nine Months Ended December 31, 2021

3.

Production, Contracts and Sales(Millions of yen)

Apr. 1, 2020－Dec. 31, 2020

Apr. 1, 2021－Dec. 31, 2021

New
contracts(ratio)Net sales(ratio)Backlog ofcontracts(ratio)New
contracts(ratio)Net sales(ratio)Backlog ofcontracts(ratio)Engineering

102,285(99.5%)

242,450(99.8%)

626,755(100.0%)392,466(99.9%)

216,575(99.8%)

1,322,332(100.0%)LNG Plant

12,567(12.2%)

86,437(35.6%)

322,094(51.4%)

10,623(2.7%)

109,437(50.4%)

877,764(66.4%)

Gas Development/
Processing/Receiving

2,201(2.1%)

8,389(3.5%)

7,908(1.3%)

546(0.1%)

3,568(1.6%)

2,813(0.2%)

Refinery/Petrochemical

37,769(36.7%)

95,336(39.2%)

67,611(10.8%)

25,421(6.5%)

46,957(21.6%)

29,231(2.2%)

Pharmaceutical/Biochemistry/
Chemical

38,743(37.7%)

16,650(6.9%)

41,976(6.7%)

29,484(7.5%)

21,852(10.1%)

50,713
(3.8%)

Environment/New Energy/
Infrastructure

8,015(7.8%)

32,769(13.5%)

185,079(29.5%)

324,063(82.5%)

32,287(14.9%)

359,713(27.2%)

Others2,988(2.9%)

2,867(1.2%)

2,084(0.3%)

2,326(0.6%)

2,471(1.1%)

2,096(0.2%)

525(0.5%)

525(0.2%)( - )523(0.1%)

523(0.2%)(

Total

102,810(100.0%)242,976(100.0%)626,755(100.0%)392,990(100.0%)217,098(100.0%)1,322,332(100.0%)

Domestic

81,714(79.5%)

105,391(43.4%)

154,022(24.6%)

64,336(16.4%)

89,250(41.1%)

108,927(8.2%)

Other Business-)

21,095
137,584
472,733
328,653 127,847 1,213,405(20.5%)(56.6%)(75.4%)(83.6%)(58.9%)(91.8%)
Note1: The backlog of contracts includes a decrease due to changes in construction contracts acquired inprior fiscal years, and an increase / decrease due to foreign exchange translation adjustments.
Note2: There is a change of breakdown category and definition in ‘Engineering’ starting from the 2nd
quarter of this fiscal year. The figures of the previous fiscal year are also shown according to thenew breakdown category.
Overseas10Chiyoda Corporation (6366)
Consolidated Financial Results for the Nine Months Ended December 31, 2021

4.

Others1.

Ichthys LNG ProjectIn 2012, JKC, a joint venture of Chiyoda Group, JGC Holdings Corp. (JGC), and US company KBR, Inc.
(KBR), was awarded the contract from Ichthys LNG Pty Ltd (the Client) to perform the engineering,procurement, and construction work for LNG facilities (the Project). This plant has been already turned overto the Client.
However, as described below, there are matters between the joint venture, on one hand, and the Client andcertain subcontractors, on the other, that are currently the subject of discussion or arbitration. We reached
an agreement with the Client to settle out of court, but arbitration is ongoing with certain subcontractors, andif an outcome or ruling is unfavorable to JKC, it could affect the Group’s business results by making someof the costs tentatively borne by JKC uncollectible.

(1) Resolution of Dispute with the Client
JKC has continued to engage in discussions and arbitration with the Client concerning various mattersrelating to the contract for the Project. In connection with one of these matters, a portion of the additional
subcontracting cost for onsite work, in April 2021 the Client filed a lawsuit against JGC seeking
subrogation, by performance of the parent company guarantee. Amid concern that the arbitration andthis lawsuit would be further prolonged partly due to the COVID-19 pandemic, Chiyoda has reevaluated the foreseeable increase in dispute-related expenses and the risks associated with pursuingthis matter until the final ruling/judgment, with a wide possibility of outcomes. As a result, the three JKC
joint venture partners (Chiyoda, JGC, and KBR) determined that it would be best to settle various
matters with the Client, including this lawsuit, as expeditiously as possible and agreed to settle out ofcourt on October 15, 2021. The impact of the settlement is reflected in the Group’s consolidated-basis
financial statements for the first quarter of the fiscal year.

(2) Dispute with Subcontractor
JKC placed the order for the engineering and construction of the Combined Cycle Power Plant (CCPP)
that is part of the Project through a fixed-price contract with a consortium of four companies, General
Electric Company and General Electric International, Inc., and UGL Infrastructure Pty Limited andCH2M Hill Australia Pty. Limited (collectively, the ‘Consortium’).
However, the Consortium unilaterally terminated the contract while executing this work, and withdrew
from the construction site without the permission of JKC. The Consortium also filed for arbitration to
demand payment of additional costs related to circumstances prior to its withdrawal. In light of thissituation, JKC has appointed a subcontractor to replace the Consortium in order to fulfill its performanceobligations to the Client, and while bearing tentatively the construction costs to proceed with theconstruction of the CCPP, JKC filed a counterclaim against the Consortium seeking the reimbursementof the construction costs tentatively borne by JKC.

2.

Regarding the plant construction project awarded jointly to Chiyoda and our overseas subsidiary

A petition was filed in The High Court of the Republic of Singapore on August 29, 2019. The counterparty toa contract for a plant construction project that was awarded jointly to Chiyoda and overseas subsidiary
Chiyoda Sarawak Sdn. Bhd. (‘Petitioner’) filed a lawsuit seeking the partial rescission of the arbitral award
dated March 11, 2019 and an increase in the damages to be received by the petitioner in conjunction withsuch a rescission. The High Court of the Republic of Singapore gave its decision on January 29, 2021. It
admitted partial rescission of the arbitral award, however, it did not approve an increase in the compensationof damages received by the Petitioner.
Dissatisfied with the decision and not accepting either the partial rescission of the arbitral award nor the
court’s partial change to the calculation made by the arbitral tribunal for the arbitral award, Chiyoda and ouroverseas subsidiary filed an appeal on March 1, 2021, but the Singapore Court of Appeal dismissed the11Chiyoda Corporation (6366)
Consolidated Financial Results for the Nine Months Ended December 31, 2021

appeal on September 22, 2021. The reason of the dismissal were received on November 11, 2021. Chiyoda
and CSSB examined the contents of the results, discussed with their counsel, and paid 2,251 million yen to
the Petitioner.

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END -

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