Translation

August 8, 2012

Consolidated Financial Results
for the Three Months Ended June 30, 2012
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, SL, Accounting Section
TEL: +81-45-225-7745 (from overseas)
Scheduled date to file Quarterly Report: August 13, 2012
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 three months ended June 30, 2012

(1) Consolidated operating results
Net sales(Percentages indicate year-on-year changes)
Operating income

Millions ofyen% Millions of yen

Ordinary income

Millions of% yen

Net income
Millions of% yen

For the three months
73,506 32.7
4,562
2.6
5,044
5.7
ended June 30, 2012
For the three months
55,384
3.6
4,447 52.8
4,772 275.6
ended June 30, 2011
Note: Comprehensive Income: the three months ended June 30, 2012: 2,731 million yen / 83.0%
the three months ended June 30, 2011: 1,492 million yen / 35.5 %Net income per share

For the three months
ended June 30, 2012
For the three months
ended June 30, 2011

2,891

78.6

1,618

23.8

Fully diluted net
income per share

YenYen

11.16

-

6.25

-

(2) Consolidated financial position
Total assets

Net assets

Equity ratio

Millions of yen

Millions of yen%

As of June 30, 2012

384,088

167,02143.3

As of March 31, 2012

365,795

168,737

46.0

Reference: Equity

As of June 30, 2012: 166,341 million yen

1%As of March 31, 2012: 168,120 million yen

2.

Cash dividends
Cash dividends per share
Record date

First quarter

Second quarter

Third quarter

Fiscal year-end

Yen

YenYen-

17.00

17.00

-

17.50

17.50

Yen
Yen
Fiscal year ended
March 31, 2012
Fiscal year ending
March 31, 2013
Fiscal year ending
March 31, 2013
(Forecast)
Note: Revision to the latest forecast announcement 2012: None

3.

AnnualConsolidated earnings forecasts for the fiscal year ending March 31, 2013 (fromApril 1, 2012 to March 31, 2013)(Percentages indicate year-on-year changes.)
Net salesFiscal year ending
March 31, 2013

Operating income Ordinary income

Net income pershareNet income

Millions ofyen%Millions ofyen%Millions ofyen%Millions ofyen%

Yen430,000

68.8

22,500(7.0)

23,000(3.3)

15,0004.4

57.90

Note: Revision to the latest forecast announcement 2013: 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 FinancialStatements: 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: Yes
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 June 30, 2012
260,324,529 shares
As of March 31, 2012
260,324,529 sharesb. Number of treasury stock at the end of the period
As of June 30, 2012
1,264,225 shares
As of March 31, 2012
1,259,891 sharesc. Average number of shares during the period
For the three months ended June 30, 2012
259,061,629 shares
For the three months ended June 30, 2011
259,100,022 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.

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5.

Qualitative Information related to Consolidated Performance

Qualitative Information on Business Performance
The Business environment facing the Chiyoda Group during the consolidated first quarter was evenmore uncertain due to the continuing effect on the global economy such as the prolonged debt crisis
in Europe. However, capital expenditure projects planned to meet the growing energy demand were
not heavily affected. While Japanese manufacturers continue to expand their overseas operations
due to the strong yen and electric power situation, measures were taken to establish a Feed-in Tariff
Scheme for Renewable Energy in Japan.
The Chiyoda Group continued its sales efforts under these conditions by responding to the global
shift to natural gas as a source of clean energy and transfer by Japanese clients of their operations
overseas. At the same time, the Group directed its efforts to expand into new business fields such as
overseas infrastructure and new energy including investment and operation in these fields.
The result of these efforts during the consolidated first quarter was 107,224 million yen inconsolidated new contracts (312.3% increase compared to the same period of the previous fiscalyear), 848,678 million yen in consolidated contract backlog (81.6% increase year on year) and
73,560 million yen (32.7% increase year on year) in consolidated revenues. Smooth execution ofprojects resulted in increase of incomes; operating income 4,562 million yen (2.6% increase year onyear), ordinary income 5,044 million yen (5.7% increase year on year) and net income 2,891 millionyen (78.6% increase year on year).
A summary of operating results of our engineering business, the Group’s reportable segment, is asfollows:
LNG Plants/Gas and Power Utilities
The Group is earnestly working outside Japan on the execution of the EPC (Engineering,Procurement and Construction) work for LNG plant in Papua New Guinea and another LNG plant inAustralia. Out of the 2 FEED (Front End Engineering and Design) works for LNG projects inAustralia under execution, one is completed and the other is to be finished shortly. The Group is
now preparing for the EPC bidding for both projects. Our Qatari subsidiary has been receiving
orders for the maintenance and modification works to LNG and gas processing plants built by theChiyoda Group in Qatar, and working on the execution of those projects.
In Japan, we continue to make steady progress on several construction works of LNG receiving
terminals including the newly awarded contract, as well as other existing projects.
Petroleum, Petrochemicals and Gas Chemicals
The Group steadily executed overseas works such as EPC work for a heavy oil cracking unit in
Saudi Arabia, EPsCm (Engineering, Procurement support, and Construction management) services
for heavy crude oil upgrading facilities for a petroleum refinery in Venezuela, and EPsCm works for
petroleum refineries in Singapore.
Our subsidiary in Singapore signed an Enterprise Framework Agreement with Shell to provide a fullrange of services covering FEED and EPCm (Engineering, Procurement, and Constructionmanagement) for downstream projects within Asia.
Steady progress has been made in Japan on the execution of works aimed at improving thecompetitiveness and energy saving of petroleum refineries. The Group is also working on theremaining restoration works for facilities that had been damaged by the Great East JapanEarthquake.
Industrial Machinery/Environment/General Chemicals and Other Fields
The Group smoothly executed projects such as EPC work for polycrystalline silicon plants in
Malaysia, the product of which is used for photovoltaic cells, and a nickel refinery in the Philippines.
We have been reinforcing efforts to meet the needs of Japanese companies expanding theiroperations in Southeast Asia.
Following the launch of the Feed-in Tariff Scheme for Renewable Energy in Japan, the Group isexpanding its sales activities in the photovoltaic power generation field including investment andoperation in addition to winning the related EPC contracts.
In the pharmaceutical field, the Group has made earnest efforts to execute EPC work for themanufacturing facilities of highly bioactive pharmaceuticals, such as anti-cancer drugs, and EPC
work for a bulk vaccine plant and pharmaceutical formulation plant.
The Group is working on infrastructure projects overseas, including a feasibility study for an3

integrated wastewater treatment project at a large industrial complex in Saudi Arabia, and on aproject to investigate energy savings in a large industrial complex in Thailand. We have beenstrengthening our approach to the new business fields by making sales efforts for water related
business in the Middle East, and participating in the Study on a Masterplan for Establishing aMetropolitan Priority Area for Investment and Industry in the Jabodetabek Area in Indonesia.

Note: See Page 9 for more information on segment New Contracts, Net Sales and Backlog ofContracts.

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6.

Consolidated quarterly financial statements(1) Consolidated balance sheets(Millions of yen)
As of March 31,2012 As of June 30,2012

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable fromcompleted construction contracts
Short-term investment securities

35,57744,511

43,84040,445

138,499

136,499

Costs on uncompleted construction contracts

13,41919,652

Jointly controlled assets of joint venture

65,79469,859Other

23,354

24,213(6)(9)

320,478

335,173

Buildings and structures, net

4,360

6,717

Land

12,736

12,736

Other, net

1,903

2,257

Total property, plant and equipment

19,00121,711

4,600

5,234

Investment securities

18,19018,479

Other

3,614

3,580

(88)

(90)

21,71521,96945,317

48,914

365,795

384,088

Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment

Intangible assets
Investments and other assets

Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets

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(Millions of yen)
As of March 31,2012 As of June 30,2012

Liabilities
Current liabilities
Notes payable, accounts payable for construction
contracts
Current portion of long-term loans payable

86,211

83,522

10,000

10,2091,162

549

76,533

94,756

289

302

568

551

Provision for bonuses

4,054

1,641

Other

14,86820,900Total current liabilities

193,687

212,435

198－2,609

3,326

561

1,304

3,369

4,631

197,057

217,066

Capital stock

43,39643,396

Capital surplus

37,112

37,112Retained earnings

89,34687,802

Treasury stock(1,328)(1,332)

Total shareholders' equity

168,527

166,979

Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Deferred gains or losses on hedges

1,509

1,602

442

(514)

Foreign currency translation adjustment(2,358)(1,725)

(407)

(637)

Minority interests

617

680

Total net assets

168,737

167,021

365,795

384,088

Income taxes payable
Advances received on uncompleted construction
contracts
Provision for warranties for completedconstruction
Provision for loss on construction contracts

Noncurrent liabilities
Long-term loans payable
Provision
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity

Total accumulated other comprehensive income

Total liabilities and net assets

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(2) Consolidated statement of income and comprehensive income(Consolidated statement of income)(Millions of yen)Three months ended Three months ended
June 30, 2011
June 30, 2012

Net sales of completed construction contracts

55,38473,506

Cost of sales of completed construction contracts

47,51564,690Gross profit on completed construction contracts

7,868

8,816

Selling, general and administrative expenses

3,421

4,253

Operating income

4,447

4,562

Interest income

222

212

Dividends income

84602

Equity in earnings of affiliates

49

Foreign exchange gains－24

Other88－
34Total non-operating income

420

899

Interest expenses

5050

Equity in losses of affiliates

1

Foreign exchange losses
Other－42－
339

Total non-operating expenses

95

417

Ordinary income

4,772

5,044

Income before income taxes and minority interests

4,772

5,044

Income taxes-current

347

485

Income taxes-deferred

2,768

1,621

Total income taxes

3,115

2,107

Income before minority interests

1,656

2,937

3745

1,618

2,891

Non-operating income

Non-operating expenses

Minority interests in income
Net income

726

(Consolidated statement of comprehensive income)(Millions of yen)Three months ended Three months ended
June 30, 2011
June 30, 2012

Income before minority interests

1,656

2,937

Valuation difference on available-for-sale securities

(286)

93

Deferred gains or losses on hedges

(132)

(956)

Foreign currency translation adjustment
Share of other comprehensive income of associates
accounted for using equity method
Total other comprehensive income

268

712

(12)

(55)

(163)

(206)

1,492

2,731

1,460

2,661

3169

Other comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of theparent
Comprehensive income attributable to minority
interests

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7.

Production, Contracts and Sales
Millions of yen
Apr. 1, 2011 —Jun. 30, 2011
New contracts(ratio)Net sales(ratio)Apr. 1, 2012 —Jun. 30, 2012
Backlog ofcontracts(ratio)New contracts(ratio)Net sales(ratio)Backlog ofcontracts(ratio)Engineering

24,141
92.8%

54,01697.5%

465,11499.5%

105,618
98.5%

71,151
96.8%

847,663
99.9%

LNG plants

5,975
23.0%

25,23845.6%

204,492
43.8%

11,23510.5%

28,90939.3%

503,800
59.4%

Gas and power
utilities

5,396
20.7%

6,305
11.4%

125,931
26.9%

507
0.5%

12,91917.6%

105,294
12.4%

Gas chemicals

35
0.1%

－－

35
0.0%

21
0.0%

46
0.0%

540
0.1%

Petroleum andpetrochemicals

7,031
27.0%

8,321
15.0%

37,975
8.1%

13,045
12.2%

7,560
10.3%

50,740
6.0%

General chemicals

4,566
17.6%

7,377
13.3%

68,33014.6%

76,41771.3%

18,50625.2%

167,253
19.7%

602
2.3%

5,487
9.9%

3,256
0.7%

2,852
2.6%

64
0.1%

3,066
0.3%533
2.1%

1,286
2.3%

25,093
5.4%

1,537
1.4%

3,144
4.3%

16,967
2.0%

1,866
7.2%

1,367
2.5%

2,154
0.5%

1,606
1.5%

2,354
3.2%

1,015
0.1%

Total

26,007100.0%

55,384100.0%

467,268
100.0%

107,224100.0%

73,506100.0%

848,678
100.0%

Domestic

16,74964.4%

21,03938.0%

150,069
32.1%

40,27737.6%

23,514
32.0%

184,782
21.8%

Overseas

9,258
35.6%

34,34462.0%

317,198
67.9%

66,94662.4%

49,99268.0%

663,895
78.2%

Industrial
machineryEnvironment andothers
OthersNote: The backlog of contracts for the three months ended June 30, 2012 includes a decrease due to changes
in construction contracts acquired in prior fiscal years, an increase due to adjustments in new contract
amounts, and an increase due to foreign exchange translation adjustments.

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