Translation

May 13, 2009

Consolidated Financial Results
for the Fiscal Year Ending March 31, 2009
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:
Shinji Kusunoki, General Manager, Accounting Department
TEL: +81-45-506-9410 (from overseas)
Scheduled date to file Quarterly Report: June 24, 2009
(Millions of yen with fractional amounts discarded, unless otherwise noted)

1.

Consolidated performance for the fiscal year ending March 31, 2009
(from April 1, 2008 to March 31, 2009)(Percentages indicate year-on-yearchanges.)(1) Consolidated operating results (cumulative)
Net sales

Operating income

Millions of yen
Fiscal year ended
March 31, 2009
Fiscal year ended
March 31, 2008

% Millions of yen

Ordinary income
Millions of% yen

Net income% Millions of yen%

446,438 (26.0)

7,227 (18.2)

11,449 (40.1)

6,498 (32.6)

603,559

8,839 (69.2)

19,121 (48.0)

9,640 (59.0)

24.5

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

Yen

%

%

%

Fiscal year ended
25.58
25.58
5.7
3.1
March 31, 2009
Fiscal year ended
50.15
50.12
12.2
4.7
March 31, 2008
Reference: Equity in earnings of associated companies: Fiscal year ended March 31, 2009: 137million yen,
Fiscal year ended March 31, 2008: 435 million yen

1.6
1.5

(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, 2009

357,816

145,91740.7

561.12As of March 31, 2008

378,819

81,63721.4

422.44

Reference: Equity

As of March 31, 2009: 145,513 million yen–1–

As of March 31, 2008: 81,226 million yen

(3) Consolidated cash flows
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

8,971(1,072)58,548135,536

14,274(3,917)(17,219)70,089Fiscal year ended
March 31, 2009
Fiscal year ended
March 31, 2008

2.

Cash dividends
Cash dividends per share
Record dateFiscal year ended
March 31, 2008
Fiscal year ending
March 31, 2009
Fiscal year ending
March 31, 2010
(Forecast)

3.

Payment of
Cash
Dividends

First
quarter

Secondquarter

Yen

Yen

Yen

Yen

Yen

Millions of
yen

%

%

-

-

-

10.00

10.00

1,922

19.9

2.4

7.50

7.50

1,944

29.3

1.5

6.00

6.00

-

–

–

Third
Fiscalquarter year-end Annual

PayoutDividend on
Equity Ratio
Ratio(Consolidated) (Consolidated)

–
-

-

–

31.1

–

Consolidated earnings forecasts for the fiscal year ending March 31, 2010
(from April 1, 2009 to March 31, 2010)(Percentages indicate year-on-year changes.)
Net sales
Millions ofyenOperating income Ordinary income%

Millions ofyen%Millions ofyen%

Net income pershare

Net income
Millions of
yen

%

Yen

2Q ending
September 30, 2009

180,000 (25.2)

4,500 (34.8)

5,500 (43.6)

3,000 (50.5)

11.57

Fiscal year ending
March 31, 2010

320,000 (28.3)

7,500

9,000 (21.4)

5,000 (23.1)

19.28

4.

(3.8)

Others(1) Significant changes in subsidiaries during the period (changes in specified subsidiaries
resulting in the change in scope of consolidation): None
(2) Changes in accounting policies, procedures, and methods of presentation for preparing thequarterly consolidated financial statements (changes described in the section of “Changes insignificant 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–

(3)

Number of issued shares (common stock)a. Total number of issued shares at the end of the period (including treasury stock)
As of March 31, 2009
260,292,529 shares
As of March 31, 2008
193,182,529 sharesb. Number of treasury stock at the end of the period
As of March 31, 2009
963,763 shares
As of March 31, 2008
903,520 shares* Proper use of earnings forecasts, and other special directions
1. The forward-looking statements, including earnings forecasts, contained in thesematerials 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. Commencing with the current fiscal year, the “Accounting Standard for Quarterly
Financial Reporting” (ASBJ [Accounting Standards Board of Japan] Statement No. 12)
and the “Guidance on Accounting Standard for Quarterly Financial Reporting” (ASBJ
Guidance No. 14) are applied. Also, quarterly consolidated financial statements areprepared in accordance with the “Regulation for Quarterly Consolidated Financial–3–

5. Results of Operations(1) Analysis of Results
Regarding the market environment for Chiyoda during the year ended March 31, 2009, major crude
oil and natural gas producing countries as well as energy majors had planned substantial capital
investment. However, with a downturn in the product market, shrinking demand and other effects of
the rapidly worsening economy, conditions became uncertain, including a growing trend towardrevising timing and other conditions of investment.
Under these circumstances, the Chiyoda Group made concentrated efforts to properly executeongoing projects. These efforts included completing and handing over the first liquefied natural gas(LNG) plant in Russia and the first of six trains of the ultra-large-scale LNG plants (7.8 million tones
per annum) in Qatar. While the prolonged commercial discussions with Qatar Liquefied Gas Co.,
Ltd. (3) and (4) to extend the construction period and increase the contracted price for constructionof Train 6 and Train 7 of the LNG plant have almost concluded, the construction budget could not
be maintained because the price increase secured fell short of projected additional costs to be paid
to subcontractors and other parties.
As a result, on a consolidated basis, new contracts were 209,422 million yen, a 19.1% decrease
compared with the same period of the previous year, and the backlog of contracts was 425,043
million yen, a decrease of 36.6%. Revenues decreased 26.0% to 446,438 million yen, operating
income decreased 18.2% to 7,227 million yen, ordinary income decreased 40.1% to 11,449 million
yen, and net income decreased 32.6% to 6,498 million yen.
Results by Business Segment
Natural Gas and Electric Power
Overseas, the Chiyoda Group focused on acquiring contracts for research and Front-End
Engineering and Design (FEED) under gas-related investment plans by national oil companies andinternational oil companies. For the fiscal year ended March 31, 2009, in addition to an LNG plant
project in Algeria, Chiyoda was awarded contracts including the FEED and executing planning work(FS) for the Barzan onshore gas processing project in Qatar, an EPC competition contract forparticipation in an EPC design competition for an LNG plant in Papua New Guinea, and the FEED
services for the Ichthys LNG project in Australia. In addition, promoting its long-standing plant
lifecycle engineering business, Chiyoda was awarded a long-term Engineering, Procurement,
Construction management (EPCm) services contract for LNG and gas processing plants through a
subsidiary in Qatar. Furthermore, Chiyoda worked to secure contracts for floating LNG facilities, inwhich investment is expected to grow.
In Japan’s gas and electric power sector, new construction and expansion of large-scale LNG
receiving terminals are being planned as a result of the shift to LNG as an energy source forreasons including demands to curb CO2 emissions and growth in gas-related businesses. Amidthese conditions, the Group acquired contracts including for construction of projects including an
LNG receiving terminal.
Petroleum, Petrochemicals and Gas Chemicals
In the overseas petroleum sector, despite uncertainty about the future, Chiyoda worked to acquire
contracts related to planned investments in petroleum refineries in the Middle East and Southeast
Asia.
In Japan’s petroleum sector, Chiyoda steadily promoted ongoing projects and worked to acquire
new contracts for various investment projects including for strengthening the competitiveness ofindustrial areas and environmental measures centered on energy conservation.
In the petrochemicals sector, although some investment projects were delayed due to theeconomic downturn, the Group focused on acquiring contracts for facility maintenance and repair
while promoting development projects including pilot facilities.

–4–

General Chemicals and Industrial Machinery
The Group worked to enter the promising fields of solar battery components, reflecting global
policies to promote wider use of solar batteries, and lithium batteries for automobiles.
In the pharmaceuticals sector, the Group steadily acquired new contracts due to an increasing
drive to invest in new construction and expansion of existing plants in order to adapt to recentchanges in the business environment.
Environment and Others
Chiyoda continued to conduct marketing activities in Japan and overseas for its original CT-121
flue gas desulfurization process technology. In Europe, where the environment business is mostadvanced, Chiyoda licensed its proprietary technologies for use at a major power station in
Denmark.
Major Completed Construction (*) Completed portion

Overseas

Domestic

・Feed gas preparation works of Pearl GTL project for Qatar Shell GTL Ltd. in Qatar (*)
・LNG plant Trains 6 & 7 for Ras Laffan Liquefied Natural Gas Co., Ltd. (3) in Qatar (*)
・LNG plant Trains 6 & 7 for Qatar Liquefied Gas Company Limited (3) & (4) in Qatar (*)
・LNG plant Trains 4 & 5 for Qatar Liquefied Gas Company Limited (2) in Qatar (*)
・Al Kahleej Gas Phase 2 project for ExxonMobil in Qatar (*)
・Sakhalin II LNG project in Russia･CCR unit for Seibu Oil Co., Ltd. (*)
･Expansion of Mizushima LNG receiving terminal for Mizushima LNG Company, Limited (*)
･Construction of RFCC complex for Taiyo Oil Company, Limited (*)(2) Outlook for the Year Ending March 31, 2010
Chiyoda will work to promote sales activities and projects that capitalize on the Company’s
technological advantages. Chiyoda will work to steadily execute ongoing projects in Japan andoverseas, including the large-scale projects in Qatar.
Under these conditions, and assuming an exchange rate of 95.0 yen to the U.S. dollar, on aconsolidated basis Chiyoda forecasts new contracts of 440.0 billion yen, revenues of 320.0 billion
yen, operating income of 7.5 billion yen, ordinary income of 9.0 billion yen and net income of 5.0
billion yen.
(2) Analysis of Financial Condition(1) Assets, Liabilities and Net Assets
AssetsCurrent assets decreased 17,359 million yen due to factors including a decrease of 92,256 million
yen in jointly controlled assets of joint venture resulting from an increase in payments to vendors
and subcontractors due to progress of large-scale joint venture projects, despite an increase in
cash and cash equivalents and certificates of deposit (short-term investment securities) of 64,604
million yen due to factors including allocation of new shares to third parties. As a result, total assets
decreased 21,003 million yen from the end of the previous fiscal year.
Liabilities
Total liabilities decreased 85,283 million yen. This was mainly due to a 93,360 million yen decreasein the balance of advances received on uncompleted construction contracts.
Net Assets
Total net assets were 145,917 million yen due to a 30,457 million yen increase from the third-party
allocation that Chiyoda implemented, and a 65,377 million yen increase in shareholders’ equity due
to factors including a 30,390 million yen increase in retained earnings. The equity ratio increased
19.3 points compared with the end of the previous fiscal year to 40.7%.

–5–

(2) Cash Flow
Cash flow from operating activities
Net cash provided by operating activities was 8,971 million yen. Contributing factors included a
decrease of 104,124 million yen in working capital (total notes and accounts receivable – trade,costs on uncompleted construction projects, notes and accounts payable – trade and advances
received on uncompleted construction projects), income before income taxes and minority interestsof 9,651 million yen and depreciation and amortization of 1,957 million yen, a decrease of 92,256
million yen in jointly controlled assets of joint venture due to the progress of large-scale joint
venture projects, and interest and dividend income of 1,347 million yen.
Cash flow from investing activities
Net cash used in investing activities was 1,072 million yen, due to capital investments including
purchases of software totaling 1,720 million yen and other factors.
Cash flow from financing activities
Net cash provided by financing activities was 58,548 million yen. Factors included 60,577 million
yen from the allocation of new shares to third parties, and cash dividends paid totaling 1,920 million
yen.
As a result of the above, net cash and cash equivalents as of March 31, 2009 totaled 135,536
million yen, an increase of 65, 447 million yen from the end of the previous fiscal year.
Cash Flow IndicesFiscal years ended
March 31

Equity ratio(%)

Debt repayment
period (Years)

2005
2006
2007
2008

20.2%
19.8
17.4
21.4

21.3
2.0
0.3
0.7

Interest coverage
ratio(Times)
1.6
17.3
114.4
35.3

2009

40.7%

1.1

26.3

Net cash provided by(Shareholders’ equity Interest-bearing
operatingdebt/Net cash
– minority
Notes
activities/Interest
provided byinterests)/Total
expenseoperating activities
assetsNote: The equity ratios for 2005 and 2006 represent the previous “net asset ratio.”(3) Dividend Policy
Chiyoda’s dividend policy emphasizes distributing earnings to shareholders with a target payout
ratio of 30% while strengthening the Company’s financial structure to accommodate future
expansion.
We have set the planned year-end dividend at 7.50 yen per share. Chiyoda plans to pay a year-end
dividend of 6.00 yen per share for the fiscal year ending March 31, 2010.
(4) Business Risks and Other Risks
Primary issues that could affect investor decisions regarding investment risk, such as material
issues related to the Chiyoda Group’s financial position, performance and cash flow and the
Chiyoda Group’s response to such issues, include but are not limited to the issues outlined below.
The Chiyoda Group recognizes the potential occurrence of these risks and works to avoid them tothe maximum extent possible. The Chiyoda Group also moves to respond as quickly as possible tominimize the impact of issues that present risks when they occur.

–6–

As of March 31, 2009, Chiyoda Group management acknowledges the issues that may presentrisks in the future outlined below and has made them the focus of risk management.
1) Changes in Exchange Rates
In overseas construction projects, construction payments are often in different currencies thanpayments for vendors and/or subcontractors and equipment and materials. Foreign currency
exchange rates may therefore affect the financial results of the projects. The Chiyoda Group works
to avoid and minimize such foreign currency fluctuation risks by using forward foreign exchange
contracts and matching planned outlays in multiple currencies with construction payments andreceivables.
2) Rapid Changes in Economic Trends
Cancellation, delays or revisions of the investment plans of customers or other factors resulting
from changes in economic trends exceeding forecasts could impact the Chiyoda Group’s
performance. In addition, construction execution plans and budgets and collection of receivables
may be affected by the worsening business conditions of business partners involved in plant
construction, including subcontractors and suppliers of equipment and materials.
The Group will work to avoid and minimize risk in ways such as sufficiently analyzing the credit
standing of business partners to confirm whether and under what conditions to transact businesswhile monitoring economic trends.
3) Terrorism, Conflicts and Other Force Majeure Events
Force majeure events such as terrorism or conflicts may cause direct losses, delays in procuring ordelivering materials and equipment, threats to the safety of workers, cessation of construction work,and other problems at construction sites in Japan and overseas.
While placing top priority on the avoidance of human injury, the Chiyoda Group has structured athreat management system that includes cooperation with customers and other related parties tosupport rapid initial response should such issues occur. In addition, the Chiyoda Group takes otheractions to avoid or minimize these risks, including negotiating contractual provisions that rationallyallocate additional costs to customers.
4) Plant Accidents
Serious accidents including explosions or fire may occur due to various causes at plants that the
Chiyoda Group is constructing or has completed. The Chiyoda Group could be judged responsible
for such accidents, including being held liable for damages, which could impact the Chiyoda
Group’s performance.
The Chiyoda Group works to avoid or minimize this risk in ways such as taking all possible
measures to preclude the occurrence of accidents, including quality control and safety
management. Other countermeasures include maintaining appropriate insurance coverage andnegotiating contracts that rationally allocate customer responsibility for damages.

–7–

6. Management Policies(1) Basic Management Policies
The shared management philosophy of the Chiyoda Group is, “Aim for harmony between energy
and the environment in enhancing our business and contribute to the development of a sustainable
society as an integrated engineering company through the use of our collective wisdom andpainstakingly developed technology.” We aim for corporate group management that earns the trust
and understanding of all stakeholders, including shareholders, customers, business partners,
employees and local communities.
In order to further raise corporate value, the Chiyoda Group has formulated and today announced
its medium-term management plan “Engineering Excellence, Value Creation 2012,” for the period
from the year ending March 31, 2010 through the year ending March 31, 2013.
In the medium-term management plan “Engineering Excellence, Value Creation 2012,” we will
focus on our engineering, procurement and construction (EPC) business, where we are strong,while effectively utilizing our increased shareholders’ equity to strengthen our business foundation.
The Chiyoda Group will pursue Engineering Excellence through innovation, create value for clientsand society and aim to be a leader in profitability in the industry while contributing to customers andsociety by emphasizing the following three concepts in the business domain of energy, resource
development and the environment.
1. Technology Challenge: Study, acquire, accumulate and develop leading-edge technologies
2. Optimum Solutions: Provide environmentally responsible, optimum solutions that meet theneeds of customers and society
3. Global Diversification: Further advance global operations–8–

(2) Key Performance Indicator
The earnings target the Chiyoda Group is aiming for in the fiscal year 2012 (the year ending March
31, 2013), the final year of the medium-term management plan “Engineering Excellence, Value
Creation 2012,” is consolidated net income of 23 billion yen. To achieve this target, we assume thatrevenues, operating income and ordinary income will be 550 billion yen, 34 billion yen and 38 billion
yen, respectively, for the fiscal year 2012.
(3) Medium-to-Long-Term Management Strategies
The Chiyoda Group’s management is moving forward based on the fundamental recognition that
the Chiyoda Group’s core competence is its sophisticated project execution capabilities backed byleading-edge elemental technologies.. In the medium-term plan aimed at the next significant step
forward, we must make necessary moves in areas such as strategic business alliances, mergers
and acquisitions, and invest in technology research and development, overseas base enhancement,
human resources and information technology infrastructure. At the same time, we will establish asolid management foundation for growth. Accordingly, we will promote the following management
strategies.
Further Strengthen Chiyoda’s Core Businesses
・While maintaining leading position in the LNG and gas business (the gas value chain), theChiyoda Group will respond to the increasing number of projects executed under harshenvironmental conditions. We will establish standardized designs and modular construction
methods. Upstream, we will take steps such as concluding business alliances with corporategroups, particularly those that are strong in various types of offshore facilities, and promote
initiatives in areas such as floating LNG.
・Through business alliances, mergers and acquisitions with domestic and overseas
companies, the Chiyoda Group will expand its business operations with the aim of securing
manpower and accommodating for diverse contract configurations, including costreimbursement contracts.
・The Chiyoda Group will promote the development of markets in Asia, Oceania and newmarkets in South America in close cooperation with Mitsubishi Corporation.
・The Chiyoda Group will further strengthen its focus on its safety- and environment-first policy
in plant design and construction.
Build a Balanced Business Portfolio for Steady Growth・The Chiyoda Group will strengthen efforts to acquire petroleum refining, petrochemicals,
synthesis gas and other projects in which it can differentiate itself on the basis of technology
and execution scheme. In the petroleum refining sector, we will focus on heavy oil cracking
technology and large export oil refineries. In the synthesis gas sector, we participated in the
Nippon GTL Technology Research Association to demonstrate a gas-to-liquid (GTL) process
and continue working to commercialize it.
・In environment-related businesses, the Chiyoda Group will expand into the field of
renewable energy including solar power and battery power. We will cooperate closely withcustomers in EPC and non-EPC projects related to carbon management such as CCS(Carbon Capture and Storage) to promote a low-carbon society.
・In expanding the business domain into non-EPC businesses, the Chiyoda Group will provide
a variety of services including conceptual design and FS for energy-saving and facility
upgrading, as well as technology consulting for water and integration of utilities and for coaland heavy oil gasification. We will also pursue EPC business in these areas where possible.

–9–Further Strengthen Unified Group Operations
・The Chiyoda Group will build a sales and execution system with a strong regional focus. We
had already made progress by establishing a support organization within head office forsubsidiaries in Singapore and Qatar. In addition, we are studying how to strengthen our
subsidiary in Saudi Arabia. Those subsidiaries will undertake small and medium-scale EPC
and expand their capabilities to provide post-mechanical- completion services including
investigation of plant soundness and providing solution for problems.
・The Chiyoda Group will promote global operational efficiency in order to increase costcompetitiveness. GES and other Group companies will not only support design divisions inhead office, they will also assume more active roles in global project execution. By
expanding business functions in the Group companies, we aim to improve our global project
execution capabilities.
・The Chiyoda Group will develop business in new regions such as North America, Central
America, South America, Africa and the Commonwealth of Independent States. Recognizing
the importance of stable operations, we will diversify our regional portfolio through means
including collaboration with other companies, as well as capital and business alliances.
・While clarifying the responsibilities of Group companies, the Chiyoda Group will strive tomore strongly promote unified Group operations in order to expand business in areas suchas operation and maintenance (O&M), plant lifecycle engineering, pharmaceuticals andinorganic chemistry.
(4) Issues to Be Dealt With
From a wide view of the business environment surrounding the Chiyoda Group, confusion ininternational financial conditions due to the subprime loan crisis in the United States has severely
affected the real economy. In the short term, market trends require monitoring as a result of a lull inenergy demand and project delays due to expectations of a drop in plant costs. In order to achieve
the management indicators and strategies of the medium-term management plan “Engineering
Excellence, Value Creation 2012,” which was formulated amid these conditions, Chiyoda must deal
with the following issues in the plan’s first year ending March 31, 2010.
1.

Acquiring Contracts for New Projects
Overseas, where economic conditions are changing rapidly, Chiyoda will focus on acquiringcontracts for new projects in the petroleum and petrochemicals segments in addition to the
LNG and gas segments, while monitoring the investment trends of customers. To that end,
Chiyoda will formulate measures to strengthen technological development and costcompetitiveness, and secure and train necessary personnel.
In Japan, the Chiyoda Group will utilize its overseas bases to promote sales aimed at acquiringcontracts for a variety of industrial facilities and projects for customers investing overseas.

2.

Executing Ongoing Projects
Due to the shortage of construction workers at LNG projects currently underway in Qatar, laborcosts have risen above initial expectations, resulting in a significant reduction in earnings.
Chiyoda will maintain thorough project control at large-scale projects in Japan and overseas
including ongoing LNG projects, working to earn greater trust from customers through an evenstricter focus on safety and steady progress.

3.

Developing New Businesses
In implementing measures to build the environment business Chiyoda will focus on areas inwhich it has technical superiority in order to create opportunities to supply FS and other soft
services. Chiyoda will also strengthen sales in non-EPC businesses by establishing a
dedicated execution support organization in head office.

– 10 –

4.

Overseas Base Expansion
Chiyoda is establishing measures to increase project execution personnel and sales personnel
at regional subsidiaries in order to build a sales and execution system with a strong regional
focus. Chiyoda is also developing measures to expand the scope of functions of overseas
design subsidiaries and in order to promote global operational efficiency to increase costcompetitiveness.

Because of the severe business environment, Chiyoda will focus on prudent cash management.
However, while monitoring the progress of the above measures, Chiyoda will respond to changes
in the market by smoothly and flexibly allocating capital through strategic investments for growth,
investment to strengthen its management foundation, and investment in research and development.

– 11 –

7. Consolidated quarterly financial statements(1) Consolidated quarterly balance sheets (1/2)(Millions of yen)

AssetsCurrent assets
Cash and deposits
Notes receivable, accounts receivable from completed
construction contracts
Short-term investment securities
Costs on uncompleted construction contracts
Deferred tax assets
Jointly controlled assets of joint venture
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures, net
Machinery and vehicles, net
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets– 12 –

As of March 31,
2009

As of March 31,
2008

38,74760,48450,65136,36896,841
16,9209,872
100,426
7,392(3)
320,848

10,50016,801
5,336
192,683
16,037(5)338,207

8,130
637
1,278
11,9531
22,001
4,921

8,354
930
1,852
11,935
0
23,072
4,714

6,955
1,348
2,074
(333)
10,04536,968357,816

9,302
1,649
2,362
(490)
12,824
40,612378,819

Consolidated balance sheets (2/2)(Millions of yen)
As of March 31,
2009

As of March 31,
2008

77,02074,03718
5,457

10,0391,408

91,661

185,022

3,801
4,302
3,557
13,398199,218

2,098
4,044
4,196
13,137
293,986

10,004
1,606
681
388
12,681
211,899

22
1,690
536
947
3,196
297,182

Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity

43,392
37,10869,730(1,105)
149,126

12,934
6,718
65,155(1,059)83,748Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Total valuation and translation adjustments
Minority interests
Total net assets
Total liabilities and net assets(775)(1,368)(1,469)(3,613)404
145,917357,816(847)(1,667)(6)(2,521)
410
81,637
378,819

Liabilities
Current liabilities
Notes payable, accounts payable for construction
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
Provision for bonuses
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Provision for retirement benefits
Provision for directors' retirement benefits
Other
Total noncurrent liabilities
Total liabilities– 13 –

(2) Consolidated statement of income(Millions of yen)
Fiscal year ended
31, 2009

Consolidated quarterly statements of income
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
Dividends income
Equity in earnings of affiliates
Real estate rent
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Stock issuance cost
Rent expenses on real estates
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Reversal of impairment loss
Reversal of allowance for doubtful accounts
Other
Total extraordinary income
Extraordinary loss
Loss on valuation of investment
Loss on abolishment of retirement benefit plan
Other
Total extraordinary losses
Income before income taxes and minority
interests
Income taxes-current
Income taxes-deferred
Total income taxes
Minority interests in income
Net income– 14 –

March

Fiscal year ended March
31, 2008(From April 1, 2008
to March 31, 2009)(From April 1, 2007
to March 31, 2008)

446,438

603,559

427,461

583,035

18,977

20,524

11,7497,227

11,684
8,839

4,454
646
137
247
127
5,614

10,373
526
435
242
451
12,030

340
435
271
152
192
1,392
11,449

404
978
‐
176
189
1,748
19,121

‐
‐
127
‐
127

644
267
71
68
1,051

1,859
‐
65
1,925

616
485
79
1,181

9,651

18,991

7,120（3,996）
3,123
29
6,498

7,355
1,967
9,323
27
9,640

(3) Consolidated statement of cash flows (1/2)(Millions of yen)
Fiscal year ended
31, 2009

March(From April 1, 2008
to March 31, 2009)

Net cash provided by (used in) operating activities
Income before income taxes and minority interests
Depreciation and amortization
Reversal of impairment loss
Increase (decrease) in allowance for doubtful
accounts
Interest and dividends income
Interest expenses
Foreign exchange losses (gains)
Equity in (earnings) losses of affiliates
Loss (gain) on sales of investment securities
Loss (gain) on valuation of investment securities
Loss on abolishment of retirement benefit plan
Decrease (increase) in notes and accounts
receivable-trade
Decrease (increase) in costs on uncompleted
construction contracts
Increase (decrease) in notes and accounts payabletrade
Increase (decrease) in advances received on
uncompleted construction contracts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement
benefits
Increase (decrease) in provision for warranties forcompleted construction
Increase (decrease) in provision for loss on
construction contracts
Decrease (increase) in accounts receivable-other
Decrease (increase) in jointly controlled asset of joint
ventureIncrease (decrease) in accrued consumption taxes
Increase (decrease) in deposits received
Increase (decrease) in accrued liability of a defined
contribution pension plan
Other, net

Fiscal year ended March
31, 2008(From April 1, 2007
to March 31, 2008)

9,651

18,991

1,957

1,593

－

(267)

(158)

(77)

(5,101)(10,900)

340

404

(26)

80

(137)

(435)

－

(644)

1,859

616

－

485

(13,859)

2,215

171

10,854

2,772(12,740)(93,209)(46,788)

(847)

(901)

(181)

(473)

1,754

522

43

4,034

2,229

627

92,256

63,377

424

351

(511)

183

(811)

(832)

9,477

4,195

SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid

8,094

34,473

1,347

1,026

Net cash provided by (used in) operating activities– 15 –

(398)

(312)

(72)

(20,912)

8,971

14,274

Consolidated statement of cash flows (2/2)(Millions of yen)
Fiscal year ended
31, 2009

Net cash provided by (used in) investment activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant andequipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Purchase of investments in subsidiaries resulting inchange in scope of consolidation
Collection of long-term loans receivable
Other, net
Net cash provided by (used in) investment activities
Net cash provided by (used in) financing activities
Proceeds from long-term loans payable
Repayment of long-term loans payable
Proceeds from issuance of common stock
Cash dividends paid
Cash dividends paid to minority shareholders
Repayments of finance lease obligations
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
Cash and cash equivalents at end of period– 16 –

March

Fiscal year ended March
31, 2008(From April 1, 2008
to March 31, 2009)(From April 1, 2007
to March 31, 2008)

－

(826)

888

68

(563)

(360)

41

5

(1,156)(1,256)(65)(2,305)

－

839

(215)

(115)

－

35

(0)

0

(1,072)(3,917)

10,000－(10,039)(14,186)

60,57713(1,920)(2,879)

(10)

(12)

(13)

－

(46)

(154)

58,548(17,219)

(999)

(99)

65,447(6,962)70,08977,051

135,536

70,089

8.

Production, Contracts and Sales (Consolidated)
Millions of Yen
FY2009Apr. 1, 2008 —March. 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 Engineering

42,84572,160240
53,44525,522
4,032
5,133
203,379

20.5
34.5
0.1
25.5
12.2
1.9
2.4
97.1

192,769
127,007467
74,131
24,232
9,216
12,889440,713

43.2
28.4
0.1
16.6
5.4
2.1
2.9
98.7

137,214
168,936
845
83,45820,862
1,788
11,064424,170

32.3
39.8
0.2
19.6
4.9
0.4
2.6
99.8

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

6,043

2.9

5,724

1.3

873

0.2

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

148,936
60,486
209,422

71.1
28.9
100.0

123,156
323,282
446,438

27.6
72.4
100.0

215,740
209,303
425,043

50.8
49.2
100.0

Millions of Yen
FY2008Apr. 1, 2007 —March. 31, 2008
RevenuesAmt%

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

54,52241,009306
107,188
22,157
10,38017,577
253,143

21.1
15.8
0.1
41.4
8.6
4.0
6.8
97.8

389,340
98,505948
71,991
22,6968,581
5,970
598,034

64.5
16.3
0.2
11.9
3.8
1.4
1.0
99.1

290,599
226,651
1,072
108,333
17,227
7,212
18,866
669,964

43.4
33.8
0.1
16.2
2.6
1.1
2.8
100.0

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

5,611

2.2

5,525

0.9

86

0.0

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

158,187
100,567
258,754

61.1
38.9
100.0

110,073493,486
603,559

18.2
81.8
100.0

190,508
479,541
670,050

28.4
71.6
100.0

Note: The backlog of contracts for the fiscal year ended March 31, 2008 includes a decrease due tochanges 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.

– 17 –