Translation

May 13, 2014

Consolidated Financial Results
for the Fiscal Year Ended March 31, 2014
Company name: CHIYODA CORPORATION
Listing:First Section of the Tokyo Stock Exchange
Stock code:
6366
URL:
http://www.chiyoda-corp.com/
Representative: Shogo Shibuya, President & CEO
Inquiries:
Nobuo Sekita, SL, Accounting Section
TEL: +81-45-225-7745 (from overseas)(Millions of yen with fractional amounts discarded, unless otherwise noted)

1. Consolidated performance for the fiscal year ended March 31, 2014
(from April 1, 2013 to March 31, 2014)(Percentages indicate year-on-yearchanges.)(1) Consolidated operating results
Net sales
Millions of yen

Operating income% Millions of yen

Ordinary income
Millions of% yen

Net income% Millions of yen%

Fiscal year ended
446,147 11.8
21,079 (16.1)
22,837 (10.5)
13,447 (16.4)
March 31, 2014
Fiscal year ended
398,918 56.6
25,113
3.8
25,518
7.2
16,077 11.9
March 31, 2013
Note: comprehensive income: Fiscal year ended March 31, 2014: 13,034 million yen (48.0% decrease year on year)
Fiscal year ended March 31, 2013: 25,082 million yen (57.9% increase year on year)

Net income per Fully diluted net Return on Equity Ratio of Ordinary Ratio of Operating
Income to Total
Income toshare
income per share(ROE)
Assets
Revenue
Yen
Fiscal year ended
March 31, 2014
Fiscal year ended
March 31, 2013

Yen

%

%

%

51.91

－

7.0

5.0

4.7

62.06

－

9.0

6.4

6.3

Reference: Equity in earnings of associated companies: Fiscal year ended March 31, 2014: (374) million yen
Fiscal year ended March 31, 2013: 145 million yen(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Net assets per share

Millions of yen

Millions of yen%

Yen

As of March 31, 2014

475,288

198,03141.3

758.31

As of March 31, 2013

435,379

189,35643.3

727.24

Reference: Equity

As of March 31, 2014:

196,411 million yen

As of March 31, 2013:

188,386 million yen(3) Consolidated cash flows

Fiscal year ended
March 31, 2014
Fiscal year ended
March 31, 2013

Net cash provided byoperating activities

Net cash used ininvesting activities

Net cash used infinancing activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen(17,177)(16,796)(5,249)145,303

14,147(5,257)(4,432)

180,229

12. Cash dividends
Cash dividends per share
Record dateFiscal year ended
March 31, 2013
Fiscal year ended
March 31, 2014
Fiscal year ending
March 31, 2015
(Forecast)First
Secondquarter quarter

Payment of
Cash
Dividends

Third
Fiscalquarter year-end Annual

PayoutDividend on
Equity Ratio
Ratio(Consolidated) (Consolidated)

Yen

Yen

Millions of
yen

%

%

–

19.00

19.00

4,921

30.6

2.8

–

–

16.00

16.00

4,144

30.8

2.2

–

–

16.00

16.00

Yen

Yen

Yen

–

–

–
–

30.7

3. Consolidated earnings forecasts for the fiscal year ending March 31, 2015
(from April 1, 2014 to March 31, 2015)(Percentages indicate year-on-year changes.)
Net sales

Fiscal year ending
March 31, 2015

Operating income Ordinary income

Net income pershare

Net income

Millions ofyen%Millions ofyen%Millions ofyen%Millions of
yen

%

Yen

465,000

4.2

19,000(9.9)

21,000(8.0)

13,5000.4

52.12

4. Others(1) Changes in Significant Subsidiaries during the Period (changes in specified
subsidiaries accompanying changes in the scope of consolidation): None
(2) 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
(3) Number of issued shares (common stock)a. Number of shares issued at year-end (including treasury shares)
March 31, 2014
260,324,529 shares
March 31, 2013
260,324,529 sharesb. Number of treasury shares at year-end
March 31, 2014
1,310,312 shares
March 31, 2013
1,279,223 sharesc. Average number of shares during each of the following fiscal years
Year ended March 31, 2014
259,030,158 sharesYear ended March 31, 2013
259,053,018 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 be reasonable. Actual business and other results may differ substantially due
to a number of factors.

2

5.
Qualitative Information related to Consolidated Performance(1)Qualitative Information on Business Performance
During the fiscal year under review, despite there being a lull in the European debt crisis,
we saw changes in the world economy affected by the slowdown in the economy of
emerging countries such as China, the future policy trends of USA and geo-politicalconcerns. However, in the energy field, with which the Chiyoda Group has close links,
preparations for investment in numerous gas related facilities are being encouraged by
the continuing increase in energy demand, the Shale Revolution and the tide of Gas Shift.
The Japanese economy has gradually recovered, largely due to the measures taken by
the government which are intended to pull Japan out of deflation.
Faced with these conditions, the Chiyoda Group entered the U.S. market as part of its
drive to become involved in the planned construction of numerous LNG projects
throughout the world, especially in the North America. While the Group continued tostrengthen its core business in the fields of oil and gas, it is also accelerating its
expansion into new business fields such as offshore and upstream, and new andrenewable energy including Chiyoda’s own technologies for a Hydrogen Supply Chainand solar power generation.
Execution of ongoing projects continued smoothly, including LNG plants in Papua New
Guinea and Australia, an overseas project for Japanese clients in Vietnam, refinery
projects in Saudi Arabia, Qatar and Venezuela, and LNG receiving terminals in Japan.
Consolidated new orders for the fiscal year amounted to 589,867 million yen (46.4%
increase year on year). The backlog and revenues were 1,072,218 million yen (19.1%
increase) and 446,147 million yen (11.8% increase) respectively.
The operating income amounted to 21,079 million yen (16.1% decrease year on year),ordinary income to 22,837 million yen (10.5% decrease), and net income resulted in
13,447 million yen (16.4% decrease).
Highlights during this period for each segment are summarized hereunder:
LNG Plants/Other Gas Related Works
The Group was awarded an Engineering, Procurement and Construction (EPC) contracts
for huge natural gas liquefaction facility in U.S. to be fed by shale gas. The EPC
execution of an LNG plant in Papua New Guinea was completed and another LNG
project in Australia is progressing as planned. Moreover the Group has been executing
Front End Engineering Design (FEED) works for an LNG plant in Mozambique and a
Floating LNG (FLNG) facility in Indonesia. Our Qatari subsidiary is executing theEngineering, Procurement and Construction management (EPCm) works for the
maintenance and modification of existing LNG and gas processing plants built mainly by
the Group. In Japan, the Naoetsu LNG Receiving Terminal was completed, and several
EPC works on LNG receiving terminals and the expansion/modification works of existing
plants are ongoing in parallel.
LNG plants and other gas-related works constitute our core business and, in this regard,
we will pursue any such project whether onshore/offshore, overseas/domestic orconventional/ unconventional.
Petroleum/Petrochemicals/Gas Chemicals
Several EPC works are ongoing globally for a refinery and petrochemical complex in
Vietnam and a refinery project in Qatar. The group completed the EPC works for a heavy
oil cracking unit in Saudi Arabia and a petrochemical plant in Singapore. Additionally, oursubsidiary in Singapore is performing the project management services under anEnterprise Framework Agreement for downstream projects within Asia, while theEngineering, Procurement support and Construction management (EPsCm) services forheavy crude oil upgrading facilities in Venezuela continue.
In Japan, we continued to perform the EPC work for a Trans-Alkylation Unit, thediagnosis of existing facilities, maintenance and upgrading works, studies andconstruction works aimed at energy saving in the facilities, and studies to fortify the
infrastructure of a refinery in case of the possible catastrophe.
3

Mining/Mineral Refining/Offshore/General Chemicals/Environment/ Other Fields
As part of the Mid-Term Business Plan to expand our business fields, we are targetingnew orders and are steadily executing backlog contracts, both overseas anddomestically, for offshore and upstream projects, and non-hydrocarbon projects.
The Group, in cooperation with our strategic alliance partner Xodus Group, started
providing integrated services in the offshore/upstream field especially for domestic
customers.
EPC works for polycrystalline silicon plants in Malaysia and a nickel refinery in thePhilippines were successfully completed. We have been reinforcing our efforts anddeveloping our sales activities to meet the needs of Japanese companies expanding
their operations overseas.
We are operating a demonstration plant in Italy for a Concentrating Solar Power (CSP)
system, and accelerating our efforts to prove this technology in order to develop thebusiness opportunities for the CSP system, including EPC projects. .
The Group is moving forward with the EPC execution of a new international airport inMongolia and is preparing bids for further airport and/or railway projects. While we are
performing works on a demonstration project for an industrial wastewater treatment/water
recycling system in Saudi Arabia, we have started business development for the EPC
works for medium-small sized water treatment projects in an effort to expand ourrecycled water-related business into the Middle East, by establishing a framework in ourgroup company to execute these works,.
In Japan, we won a number of EPC works for large-scale photovoltaic power generation
systems and are executing and expanding our sales activities by enhancing our group
operation in this field. We are also active in the pharmaceutical field, having completed
the construction of pharmaceutical facilities for bulk vaccine and in vitro diagnostics, andare executing EPC works for fluid infusion facilities, nanotechnology researchdevelopment facilities in cooperation with industry, government and academia, and newly
awarded bio-medicine plant. On the other hand, to achieve a hydrogen-based society,
we are studying/discussing with the parties concerned (both overseas and domestic) toestablish a hydrogen supply chain through our own-developed technology to transportand deliver large volumes of hydrogen.
Outlook for the Next Fiscal Year
Chiyoda will continue to accelerate its sales activities and win contracts in areas where
Chiyoda can best leverage its technological advantages. We will also continue to work
diligently on the execution of existing overseas and domestic projects including the large
projects in Australia.
In consideration of these circumstances, and assuming an exchange rate of ¥100/dollar,
our forecasts for the fiscal year ending March 31, 2015 include 800.0 billion yen in newconsolidated contracts and 465.0 billion yen in revenues. Our forecast for the
consolidated operating profit is 19.0 billion yen, consolidated ordinary income is 21.0
billion yen, and the consolidated net income is 13.5 billion yen.

4(2) Analysis of Financial Condition
1) Assets, Liabilities and Net Assets
Assets
While cash and deposits decreased by 22,088 million yen from the previous fiscal year,
current assets increased by 25,889 million yen due to a 32,770 million yen increase injointly controlled assets of joint ventures and a 18,531 million yen increase in costs on
uncompleted construction contracts. Noncurrent assets increased by 14,019 million yen
due to a 11,720 million yen increase in goodwill. Total assets increased by 39,909 million
yen.
Liabilities
Total liabilities increased by 31,234 million yen from the previous fiscal year due to a
27,622 million yen increase in notes payable and accounts payable for construction
contracts.
Net Assets
Net assets were 198,031 million yen as a result of an 8,537 million yen year-on- year
increase in retained earnings. The equity ratio decreased 2.0 points year-on-year to 41.3%.
2) Cash Flow
Net cash from operating activities showed a 17,177 million yen decrease due to a 31,955
million yen increase in the jointly controlled assets of joint venture and a 13,709 million yen
in taxes payable, although a 22,538 million yen in income before income taxes and minority
interests and a 2,667 million yen increase in working capital (total in notes and accounts
receivable-trade, costs on uncompleted construction contracts, notes and accounts
payable-trade and advances received on uncompleted construction contracts).
The jointly controlled assets of joint ventures are shown on the JV balance sheet as theassets controlled by Chiyoda whereas, in real terms, it is equivalent to the portion of thecurrent deposit balance under the JV names that is allocated to Chiyoda.
Cash flow from investing activities
Net cash from investing activities was a negative 16,796 million yen mainly due to 9,134
million yen expenditure for purchase of shares of subsidiaries resulting in change in scopeof consolidation and 4,046 million yen expenditure for purchase of investment securities.
Cash flow from financing activities
Net cash from financing activities was a negative 5,249 million yen due to 4,914 million yen
paid in dividends and other factors.
As the result of the above factors, the account balance for the fiscal year for cash and cash
equivalent was 145,303 million yen which was a year-on- year decrease of 34,925 million
yen.
Cash Flow IndicesFiscal years ended
March 31

Equity ratio(%)

Debt repayment
period (Years)

2010
2011
2012
2013

45.3%
43.9%
46.0%
43.3%

1.2
–
0.2
0.7

Interest coverage
ratio(Times)
34.5
–
267.9
68.6

2014

41.3%

–

–

Notes

(Shareholders’ equity– minority
interests)/Total
assetsInterest-bearing
debt/Net cash
provided byoperating activities

Net cash provided byoperatingactivities/Interest
expense5

Note: The debt repayment period and interest coverage ratio for the period both ended
March 31, 2014 and 2011 are omitted due to there being a negative cash flow fromoperating activities.
(3) Dividend Policy and Current/Next-Period Dividend Payments
Our basic policy for dividends is set to meet a payout ratio of 30% or above of consolidated
net income. This policy supports our desire to return profits to our shareholders, whilebuilding a stronger financial base by which we can finance our business growth.
We have set the dividend at 16.0 yen per share for the fiscal year ended March 31, 2014.
As for the next fiscal year, we plan a year-end dividend per share of 16.0 yen.
(4) Business Risks
The following significant risks could affect Chiyoda Group business status, finances, andour responses to such. These risks may have a material impact on investor decisions
related to investment risk. Recognizing these risks, the Chiyoda Group has set risk
reduction measures in place, as well as measures to minimize the impact should such
events occur.
The risks discussed below are those we recognize as of the date of the fiscal year ended.
(a) Changes in the Business Environment; Economic, Social and Political Situations
Various factors could require that adjustments be made to clients’ investment plans, suchas suspension, delay or review. These factors include changes in global economics, socialand political situations and a reassessment of energy policies in various countries, as wellas the market trend of oil and LNG price, which may also have an impact on Chiyoda
Group earnings. Changes in circumstances at the facilities of clients, subcontractors,
equipment and materials suppliers, and other service providers could affect our project
execution plans, profitability, and ability to collect payments.
We continuously closely monitor global economic and social trends and their potential
impact on our business, and strive to set up contract conditions to avoid/minimize theserisks. We make also a point of comprehensively studying the corporate activities and statusof service providers to avoid/minimize risk, confirming the propriety in placing orders,checking conditions on the ground, and identifying alternate service providers if such
becomes necessary.
(b) Earthquakes and Natural Disasters, Terrorism, Wars and Other Force Majeure
EventsCountry risks (earthquakes and natural disasters, terrorism, wars) and/or other force
majeure events could result in direct or indirect damages to work sites or businesslocations including construction workforce safety issues, delayed delivery of equipment andmaterials to worksites, and/or suspension of field work, etc.
We place top priority on human life and safety, and have set up a permanent organization,
the Crisis Management Unit, to gather and analyze relevant information thoroughly toprevent human suffering or harm. We established and are reinforcing the crisis
management system, which allows us to hire professional security consultant in casepeace cannot be preserved in the country or area concerned. Moreover, we constantly
maintain and develop the system to quickly react to situations and to respond to
emergencies in the initial stage, including consulting with the clients and/or the parties
concerned. In this way, we are able to avoid or minimize risks from force majeure events.
(c) Cost of Equipment and Materials
In lump sum turnkey contracts, we are exposed to the risk of sudden and severe escalationof equipment/materials costs due to the time lag between quotation and actual purchaseorder for plant construction. Specifically the price of steel, which constitutes the main partof plant construction, would be impacted severely by the rising prices of raw materials suchas coal and iron ore. It is similarly difficult to predict the future market prices of copper,
nickel, aluminum and zinc, etc.
We avoid these risks (or minimize the impact) by diversifying supply sources, placing
orders as early as possible and maintaining alliances with major vendors/suppliers, in
6

addition to analyzing the market trends.
(d) Construction Workers/Equipment and Materials
Projects may experience delays if we cannot secure sufficient construction workers,
equipment and materials, or other things necessary for the project infrastructure.
Recovering from such delays may involve cost overruns.
We avoid this risk (or minimize the impact) by adopting various construction methods, suchas modular construction in areas where labor is in short supply, and by establishing afoundation by cooperating with capable subcontractors, vendors and suppliers. If plant
construction work is suspended due to strikes or other factors, we minimize the risk by
taking the appropriate action together with clients and local authorities.
(e) Plant Accidents
There are always risks of a major accident occurring in a plant that we have built or whichis under construction. If an accident occurs, and the Chiyoda Group is determined to be at
fault, the liability for damages could have a material impact on our earnings.
Naturally, we diligently exercise all due care to prevent any unexpected situations by
pursuing peerless quality and safety management, advocated by the motto “Safety is theCore Value.” We also avoid/minimize risks by procuring the appropriate insurances and byincluding a rational division of liabilities in contract terms with our clients.
(f) Exchange Rate Fluctuations
Some construction projects may involve payment settlements (subcontractors, vendors andsuppliers) in a currency that does not correlate with the currency received from client for thework. In such cases, exchange rate fluctuations can have an impact on earnings. The
Chiyoda Group avoids/minimizes exchange rate risk by reserving against construction
payments in multiple foreign currencies and by entering into exchange rate forward
contracts.
(g) Compliance-related Risks
For global plant construction work, we need to comply with laws, acts, and regulations,both domestically and overseas.
Any problem or suspicious action that occurs, including abuse of human rights and bribery,
could have considerable effect on the project execution or business operation of the
Chiyoda Group.
The Chiyoda Group makes the maximum effort in every phase to respond to the requests
of stakeholders, including authorities concerned and clients, both domestic and overseas,in compliance with the latest laws, acts, regulations or rules related to our business
operations. Additionally, we have set up a Compliance Committee under the direct controlof the Executive Committee. We try to avoid any risk by incorporating such correspondence
to compliance issues into the work process based on “Code of Conduct of the Chiyoda
Group.”(h) Information Security Risk
The Chiyoda Group takes great care in managing any information obtained from clients,
subcontractors, equipment and materials suppliers and other service providers that isnecessary in the performance of its business, and also possesses confidential information
related to technologies, sales, and other businesses. Many core corporate operations andbusiness transactions have been conducted by making full use of the IT systems at global
subsidiaries. However, Chiyoda Group businesses could be subject to system failure,
information leaks and loss of important business information due to computer virus
infections, external unauthorized access and cyber attack. The Chiyoda Group, including
the main subsidiaries and global headquarters, has obtained ISMS (Information Security
Management System) certification, makes every effort to carry out thorough information
security management, such as periodic information security training and audits, and takes
defensive measures through its business continuity plan.

76. Management Policies(1) Basic Management Policies
The shared corporate philosophy of the Chiyoda Group is to “enhance our business inaiming for harmony between energy and the environment and contribute to the sustainable
development of a society as an integrated engineering company through the use of ourcollective wisdom and painstakingly developed technology”. We use every effort to conductbusiness that inspires trust and empathy from our shareholders, our clients, oursubcontractors and vendors, our employees, society, and all of our stakeholders.
(2) Management Indices Measuring Progress in Medium-Term Business Plan, andTargets
To improve our value as a corporate group, we established the “Seize the moment, Openup new frontiers” four-year business plan, which we officially announced on May 10, 2013.
This plan began from April 1, 2013 and will run until March 31, 2017.
(See http://www.chiyoda-corp.com/ir/en for our four-year plan and financial report)
During the last fiscal year, as the first year of the plan, we focused on the specificimplementation of policies in accordance with the basic strategies set forth therein. We
will continue to do this from this fiscal year on to achieve the expected results.
We established two basic strategies in the plan, i.e. growth strategy and operating
foundation strategy. The growth strategy aims to maintain growth as a constant providerof the value and service required by society and/or customers, by identifying exactly thetrend of times. The operating foundation strategy helps materialize the growth strategy toachieve the sustainable development of the Group. The Group will observe and respect
the provisions of compliance, CSR (Corporate Social Responsibility) and HSE (Health,
Safety and Environment) when implementing each policy.
We aim to accomplish the management indices announced in the plan.
(3) Issues (Focused Policies)
In the energy field, with which the Chiyoda Group has close links, preparations forinvestment in numerous gas related facilities are being encouraged by the continuing
increase in energy demand, the shale revolution and the tide of the shift to gas. Meanwhile,
we have to make every management decision very carefully because the feasibility of eachproject becomes more difficult to anticipate than previously due to the slowdown in theeconomy of emerging countries, the future financial policy trends of USA and geo-politicalconcerns.
The Group will not merely correspond to the vigorous demand for investment in energy, butwill concentrate on the key policies aiming to continue providing the service and value thatsociety may require in the fields where we are positioned in the first tier.
In the last fiscal year, we have decreased the risk to reduce our corporate value throughthe reinforcement of crisis management system and measures to completely observe thecompliance provisions. Henceforth, we will try to enhance our corporate value by further
diminishing the risks in addition to the implementation of growth strategy.
On the other hand, we made sure to gain a foothold in the offshore and upstream field,
which is new to us, through the alliance with a UK corporation that has expertise to provide
consulting services globally. We will expand this business by establishing the foundations
for it to grow as one of the pillars to contribute to our future revenues.

8

7.

Consolidated financial statements(1) Consolidated balance sheets (1/2)

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed
construction contracts
Securities
Costs on uncompleted construction contracts
Deferred tax assets
Jointly controlled assets of joint venture
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery and vehicles
Accumulated depreciation
Machinery and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Net defined benefit asset
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

9

As of March
31, 2013(Millions of yen)
As of March
31, 2014

59,95637,86865,39473,005

122,899
15,295
13,162
94,696
11,806(3)
383,206

107,499
33,826
18,868
127,466
10,565(3)
409,096

11,711(5,508)
6,203
1,124
(314)
809
5,450
(3,786)
1,663
5,375
494
14,547

12,557(5,694)
6,862
944
(404)
539
7,106
(5,102)
2,003
5,265
286
14,958

675
6,095
6,770

12,395
7,113
19,50928,427－2,508(80)
30,85452,172435,379

28,315
34
3,443
(68)
31,724
66,192475,288

Consolidated balance sheets (2/2)(Millions of yen)

Liabilities
Current liabilities
Notes payable, accounts payable for construction
contracts
Short-term loans payable
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
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Provision for retirement benefits
Provision for treatment of PCB waste
Net defined benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Minority interests
Total net assets
Total liabilities and net assets

10

As of March
31, 2013

As of March
31, 2014

117,769

145,392－
88
8,500
79,210
480
1,291
4,379
18,711
230,431

1,283
4
5,513
80,182
507
4,002
4,261
20,531
261,679

10,132
2,310
364
－
2,783
15,591
246,023

10,018
－
365
2,080
3,113
15,578277,257

43,396
37,112
100,988(1,349)180,147

43,396
37,112
109,525(1,390)188,644

6,584
2,890
(1,235)－
8,239
969
189,356
435,379

4,920
648
2,486
(287)
7,767
1,619
198,031475,288(2) Consolidated statement of income and comprehensive income(Consolidated statement of income)(Millions of yen)

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 income
Non-operating income
Interest income
Dividend income
Share of profit of entities accounted for using equity
methodOther
Total non-operating income
Non-operating expenses
Interest expenses
Share of loss of entities accounted for using equity method
Foreign exchange losses
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of non-current assets
Total extraordinary income
Extraordinary losses
Retirement benefit expenses
Loss on retirement of non-current assets
Loss on valuation of investment securities
Total extraordinary losses
Income before income taxes and minority interests
Income taxes - current
Income taxes - deferred
Total income taxes
Income before minority interests
Minority interests in income (loss)
Net income

11

Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

(From April 1, 2012
to March 31, 2013)(From April 1, 2013
to March 31, 2014)

398,918
356,40242,515
17,402
25,113446,147
404,685
41,462
20,38321,079

1,327
993

1,411
1,178

145

－

161
2,628

92
2,683

206
－
1,681
335
2,222
25,518

233
374
145
170
924
22,837

1,704
1,704

－
－

－
244
230
475
26,747
11,669(1,313)
10,356
16,391314
16,077299－－
299
22,538
13,101(3,773)
9,327
13,210(236)
13,447

C(Consolidated statement of comprehensive income)

Income before minority interests
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to minority interests

12(Millions of yen)
Fiscal year ended
March 31, 2013

Fiscal year ended
March 31, 2014

(From April 1, 2012
to March 31, 2013)(From April 1, 2013
to March 31, 2014)

16,391

13,210

5,075
2,448
1,081

(1,664)(2,242)
3,625

85

104

8,690
25,082(176)
13,03424,723358

13,087(53)

(3) Consolidated statement of cash flows (1/2)(Millions of yen)

Income before income taxes and minority interests
Depreciation
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for warranties for completed
construction
Increase (decrease) in provision for loss on construction
contracts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of (profit) loss of entities accounted for using equity
methodLoss (gain) on sales and retirement of non-current assets
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in costs on uncompleted construction
contracts
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in advances received on uncompleted
construction contracts
Decrease (increase) in accounts receivable - other
Decrease (increase) in jointly controlled asset of joint venture
Increase (decrease) in accrued consumption taxes
Increase (decrease) in deposits received
Other, net
SubtotalInterest and dividend income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Net decrease (increase) in time deposits
Purchase of securities
Proceeds from redemption of securities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Payments for asset retirement obligations
Purchase of investment securities
Purchase of shares of subsidiaries resulting in change inscope of consolidation
Payments of short-term loans receivableCollection of short-term loans receivable
Payments of long-term loans receivableCollection of long-term loans receivable
Other, net
Net cash provided by (used in) investing activities

13

Fiscal year ended
March 31, 2013
(From April 1, 2012
to March 31, 2013)

Fiscal year ended
March 31, 2014
(From April 1, 2013
to March 31, 2014)

26,747
2,580
41
(11)

22,538
3,196
825
(12)

187

(4)

723

2,534

295
(185)
－
(2,321)
206
(125)

(127)
－
(768)
(2,590)
233
(224)

(145)

374

(1,460)(20,453)31(1,896)(1,714)(16,974)

30,13023,650992(2,111)(2,726)(28,603)
(444)
619
8,501
12,835
1,646
(203)
(130)
14,147355(31,955)
2,163(2,141)(2,186)(5,090)1,877(255)(13,709)(17,177)

127(2,400)－(3,620)7,020(3,502)(66)(2,450)

192
－
2,400
(1,981)90(3,294)(7)(4,046)－(9,134)

－
81
(514)
35
32
(5,257)

(445)
－
(712)
101
41
(16,796)

Consolidated statement of cash flows (2/2)(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Cash dividends paid
Cash dividends paid to minority shareholders
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated
subsidiary
Decrease in cash and cash equivalents resulting from exclusionof subsidiaries from consolidation
Cash and cash equivalents at end of period

14

Fiscal year ended
March 31, 2013
(From April 1, 2012
to March 31, 2013)

Fiscal year ended
March 31, 2014
(From April 1, 2013
to March 31, 2014)－
10,000(10,000)(4,397)(7)(27)(4,432)
2,024
6,482
173,76911－(264)(4,914)(8)(72)(5,249)3,974(35,249)
180,229

－

323

(22)

－

180,229

145,303

8.

Production, Contracts and Sales

Apr. 1, 2012 —Mar. 31, 2013
New
Backlog of
Net sales
contracts
contracts(ratio)(ratio)(ratio)Millions of yen
Apr. 1, 2013 —Mar. 31, 2014
New
Backlog of
Net sales
contracts
contracts(ratio)(ratio)(ratio)397,215392,037

900,237

585,413441,615

1,071,910

98.6%

98.3%

100.0%

99.2%

99.0%

100.0%LNG Plants

47,240128,365

521,162

436,963

203,034

755,643

11.7%

32.2%

57.9%

74.1%

45.5%

70.5%

Other Gas Related Works

11,2182.8%

69,65017.5%

54,703
6.1%

14,286
2.4%

47,493
10.7%

21,585
2.0%

Petroleum/Petrochemicals/
Gas Chemicals
Mining/ Mineral
Refining/Offshore
General chemicals/Industrial Facilities
Environment/New Energy/
Infrastructure

210,574
52.3%

49,61812.4%

208,62223.2%

49,181
8.3%

75,97617.0%

203,356
19.0%

Engineering

OthersOther Business
Total
Domestic
Overseas

218

5,515

4,019

393

4,302

113

0.1%

1.4%

0.4%

0.1%

1.0%

0.0%

107,785

125,229

90,636

41,042

94,33042,560

26.7%

31.4%

10.0%

7.0%

21.1%

4.0%

18,156
4.5%

11,7892.9%20,437
2.3%

37,342
6.3%

13,3303.0%45,119
4.2%

2,021
0.5%

1,867
0.5%

655
0.1%

6,202
1.0%

3,147
0.7%

3,530
0.3%

5,704

6,881

380

4,454

4,532

308

1.4%

1.7%

0.0%

0.8%

1.0%

0.0%

402,919100.0%

398,918
100.0%

900,618
100.0%

589,867
100.0%

446,147
100.0%

1,072,218
100.0%

111,734

150,800

127,775

104,690

128,743

103,244

27.7%

37.8%

14.2%

17.7%

28.9%

9.6%

291,185

248,118

772,843

485,177

317,404

968,974

72.3%

62.2%

85.8%

82.3%

71.1%

90.4%

Note1: The amounts in parentheses in Backlog of contracts show the balance of increase anddecrease in contract amounts due to changes in the terms and conditions of contract
received in the prior fiscal years and the fluctuation of foreign exchange.
Note2: The classification of the segments was restructured from this fiscal year. Therefore newclassification also applies to the amounts in the previous fiscal year. There is no change inthe segments to be reported.
Note3: Consolidated new orders and backlog for the current fiscal year include the contract
awarded by Cameron LNG LLC for LNG Liquefaction and Export Facilities.

15