CHIYODA CORPORATION
Consolidated Financial Results
for the Nine Months Ended December 31, 2007
(the Third Quarter of the Fiscal Year Ending March 31, 2008)

This document has been prepared as a guide to non-Japanese investors and contains forwardlooking statements that are based on managements’ estimates, assumptions and projections at thetime of publication. A number of factors could cause actual results to differ materially fromexpectations. This document is a translation of excerpts taken from the Japanese language original.
All numbers are rounded down to the nearest unit in accordance with standard Japanese practice.
Please be advised that the Company cannot accept responsibility for investment decisions madebased on the information contained in this report. Please refer to “3. Qualitative Information on
Forecast of Consolidated Results” on page 4 for notes concerning the assumptions on which results
forecasts are based and the use of those forecasts.
1

Summary of Consolidated Financial Results
for the Nine Months Ended December 31, 2007
(the Third Quarter of the Year Ending March 31, 2008)

Listed Exchanges
Head Office
Stock CodePresident & CEOInquiries
Telephone
URL

Tokyo (First Section)
Kanagawa, Japan6366
Takashi Kubota
Shinji Kusunoki, General Manager, Accounting Department+81-45-506-9410
http://www.chiyoda-corp.com/

1. Consolidated Results of Operations for the Nine Months Ended December 31, 2007

(1) Consolidated Business Results
Millions of Yen
3Q FY2007
Apr. 1, 2007—
Dec. 31, 2007

3Q FY2006
Apr. 1, 2006 —Dec. 31, 2006

Change (%)

Revenues .........................................................
Operating Income ...........................................
Recurring Profit ..............................................
Net Income ......................................................
Net Income per Share (Yen) ...........................
Fully Diluted Net Income per Share (Yen) ................
Notes:

459,002
16,74325,977
15,998
83.22
83.17

37.3%
(20.4%)(1.9%)(4.8%)(reference)
FY2006
Apr. 1, 2006 —Mar. 31, 2007

Change (%)

334,417
21,03826,485
16,802
87.41
87.31

29.2%
49.7%
69.2%
(0.4%)

484,895
28,70036,79723,531
122.41122.28

1. Amounts less than 1 million are rounded down.
2. Percentage change figures are comparisons with the same period of the previous fiscal year.

(2) Change in Consolidated Financial Condition
Millions of Yen

Total Assets .............................................................................
Net Assets ................................................................................
Shareholders’ Equity Ratio ....................................................
Shareholders’ Equity per Share (Yen)...................................

3Q FY2007
As of
Dec. 31, 2007

3Q FY2006
As ofDec. 31, 2006

(reference)
FY2006
As ofMar. 31, 2007

434,116
90,22020.7%
467.25419,536
70,68916.8%
365.70442,952
77,41417.4%
400.562

(3) Consolidated Cash FlowMillions of Yen
3Q FY2007
Apr. 1, 2007 —Dec. 31, 2007
Net Cash Provided by Operating Activities ......................................
Net Cash Used in Investing Activities..............................................
Net Cash Used in Financing Activities ..............................................
Cash and Cash Equivalents, End of Period......................................

3,489
(863)
(17,182)
62,6073Q FY2006
Apr. 1, 2006 —Dec. 31, 2006

(reference)
FY2006
Apr. 1, 2006 —Mar. 31, 2007

26,856(2,429)(2,069)69,33235,531(3,458)(2,191)
77,051

2. Dividends per Share
Yen
Full term
Year Ended March 31, 2007 ........................................................ ................................
Year Ending March 31, 2008 (Forecast) .....................................................................

15.00
18.00

3. Outlook for the Year Ending March 31, 2008 (Consolidated)(Percentages represent change compared with the previous fiscal year)

Revenues ..................................................................................
Operating Income.....................................................................
Recurring Profit ........................................................................
Net Income ................................................................................
Net Income per Share (Yen) ....................................................

Millions of Yen
FY2007 (Apr. 1, 2007 – Mar. 31, 2008)
Full term%570,000
17.6
22,000(23.3)
32,000(13.0)
19,500(17.1)
101.43

4. Other(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries due to changes in the scope ofconsolidation): No(2) Application of simplified accounting methods: Yes(3) Changes in accounting methods from the most recent fiscal year: Yes

3

Qualitative Information and Financial Statements
1. Qualitative Information on Consolidated Results of Operations
Regarding the market environment for Chiyoda during the nine months ended December 31,
2007, in overseas markets for plants, new plant construction plans around the world are being
driven by continuing growth in global energy demand. In the Middle East, where there is an
ongoing rush to construct new plants, project execution is severely constrained due to a tightsupply of skilled workers. Under these circumstances, the Chiyoda Group is working to ensure
steady execution of ongoing projects, mainly in Qatar, through stricter risk management,
including measures to counter higher costs.
In the domestic market, the drive to invest remains firm in projects for new construction oflarge-scale LNG receiving terminals, and investment remains firm in new facility constructionand existing facility renovation, mainly in the fields of petroleum and petrochemicals. Centeredon the petroleum field, the Chiyoda Group’s new contracts, ongoing projects and construction
completions are proceeding smoothly.
New contracts on a consolidated basis were 211,757 million yen, a 56.4% decrease comparedwith the same period of the previous fiscal year, and the backlog of contracts decreased 29.0%
to 802,149 million yen. Consolidated revenues increased 37.3% to 459,002 million yen,operating income decreased 20.4% to 16,743 million yen, recurring profit decreased 1.9% to25,977 million yen and net income decreased 4.8% to 15,998 million yen.
2. Qualitative Information on Consolidated Financial Condition
Net assets as of December 31, 2007 increased 12,805 million yen from the end of the previous
fiscal year, and the shareholders’ equity ratio rose 3.3 percentage points from March 31, 2007 to20.7%. Total assets decreased 8,835 million yen due to factors including a decrease in jointly
controlled assets of joint venture resulting from progress on large-scale joint venture
construction projects.
Net cash provided by operating activities was 3,489 million yen.
3. Qualitative Information on Forecast of Consolidated Results
Chiyoda is making no revisions at this time to its forecast of consolidated results for the fiscalyear ending March 31, 2008, or to the forecast of the year-end dividend of 18 yen per share,announced on November 9, 2007. Forecasts continue to assume an exchange rate of 110 yen
to the U.S. dollar.
4. Other(1) Changes in significant subsidiaries during the period (changes in specified
subsidiaries due to changes in the scope of consolidation)
None applicable(2) Application of simplified accounting methods
Yes(3) Changes in accounting methods from the most recent fiscal year
Yes4

5. Summary Consolidated Financial Statements(1) Summary Consolidated Balance Sheets
3Q FY2007
As ofDec. 31, 2007%

Millions of Yen
3Q FY2006
As ofDec. 31, 2006%

FY2006
As ofMar. 31, 2007%

AssetsCurrent Assets
Cash and cash equivalents and time deposits.........
Notes and accounts receivable-trade.......................
Costs of construction contracts in process ..............
Deferred tax assets ..................................................
Jointly controlled assets of joint venture ..................
Other ........................................................................
Allowance for doubtful accounts ..............................
Total Current Assets.........................................

51,21342,59329,8083,964
238,236
29,074(80)
394,810

Fixed Assets
Property, plant and equipment .................................
Intangible fixed assets..............................................
Investments and other assets
Investment securities ..........................................
Deferred tax assets.............................................
Other investments...............................................
Allowance for doubtful accounts .........................
Total investments and other assets ....................
Total Fixed Assets ............................................
Total Assets.......................................................

11,59339,306434,116

Liabilities
Current Liabilities
Notes and accounts payable-trade ..........................
Current portion of long-term debt ............................
Income taxes payable ..............................................
Advance receipts on construction contracts ............
Reserves ..................................................................
Other .......................................................................
Total Current Liabilities ....................................

81,47961
1,172
230,969
5,316
11,901
330,901

Non-Current Liabilities
Long-term debt.........................................................
Reserves ..................................................................
Other liabilities..........................................................
Total Non-Current Liabilities............................
Total Liabilities .......................................................

10,036
2,039
919
12,994
343,896

Net Assets
Shareholders’ Equity
Common stock .........................................................
Additional paid-in capital ..........................................
Retained earnings ....................................................
Treasury stock..........................................................
Total shareholders’ equity ...................................
Valuation and Exchange Rate Adjustments
Unrealized gain on available-for-sale securities ......
Deferred loss on hedge transactions .......................
Foreign currency translation adjustments ................
Total valuation and exchange rate adjustments ......
Minority interests ......................................................
Total Net Assets ....................................................
Total Liabilities and Net Assets ...........................

90.9

69,48739,45432,975
1,499
239,528
12,492(67)395,369

94.2

77,17738,65927,656
5,884
256,060
12,640(40)
418,037

23,174
4,538

7,403
3,195

7,464
3,352

8,669
1,688
1,729
(494)

7,569
2,814
3,734
(550)

8,740
2,056
3,841
(539)

12,931
6,714
71,512(1,052)
90,10638(336)22(274)388
90,220434,116

9.1
100.0

13,567
24,166
419,536

76.2

84,03571
7,161
226,824
4,557
10,316332,967

3.0
79.2

10,102
4,051
1,724
15,879348,846

20.8

12,924
6,707
51,669(836)
70,464(0.1)
0.1
20.8100.0

62(91)
(117)
(147)
371
70,689419,536

94.4

100.0

14,097
24,915442,952

5.6
100.0

79.4

86,81396
13,070231,818
6,688
12,957351,444

79.3

3.8
83.2

10,067
2,276
1,748
14,093
365,537

3.2
82.5

16.8

12,9286,711
58,398(905)
77,133

17.4

(0.1)
0.1
16.8
100.0

247(408)49(110)392
77,414442,952

(0.0)
0.1
17.5
100.0

5.8

5

(2) Summary Consolidated Statements of Income

3Q FY2007
Apr. 1, 2007–
Dec. 31, 2007%
Revenues .................................................................
Cost of Revenues....................................................
Gross profit ...............................................................
Selling, General and
Administrative Expenses....................................
Operating income......................................................

Millions of Yen
3Q FY2006
Apr. 1, 2006–
Dec. 31, 2006%

FY2006
Apr. 1, 2006–
Mar. 31, 2007%

459,002433,462

100.0
94.4

334,417305,173

100.0
91.3

484,895
445,158

100.0
91.8

25,540

5.6

29,243

8.7

39,736

8.2

8,797

1.9

8,204

2.4

11,036

2.3

16,743

3.7

21,038

6.3

28,7005.9

2.2

5,755
36243
379
6,415

1.9

8,442
68
375
486
9,373

1.9

0.3

310
965
1,275

0.2

7.9

36,797

7.6

0.3

—742
263
166
1,171

0.2

0.0

7.8
2.9
0.0
4.9

Other Income
Interest..............................................................
Dividend income ...............................................
Equity in earnings of associated companies.....
Other ................................................................
Total Other Income .................................................

8,796
335
229
615
9,977

Other Expenses
Interest expense ...............................................
Other .................................................................
Total Other Expenses .............................................

316
425
742

0.2

237
730
968

Recurring Profit .........................................................

25,9775.7

26,485Extraordinary Gain
Gain on sales of investment securities .............
Reversal of allowance for doubtful accounts ....
Reversal of allowance for investment loss........
Other .................................................................
Total Extraordinary Gain ........................................

644
37
—
72
754

0.2

—
716
263
124
1,104

Extraordinary Loss
Loss on valuation of investment securities .......
Other .................................................................
Total Extraordinary Loss........................................

194
0195

0.1

143180.0141833

Income before income taxes and minority
interests ....................................................................
Total tax ....................................................................
Minority interests in net income ................................
Net Income...............................................................

26,537
10,5281015,998

5.8
2.3
0.0
3.5

27,571
10,72247
16,802

8.2
3.2
0.0
5.0

37,935
14,342
60
23,531

6

(3) Summary Consolidated Statements of Cash Flow
3Q FY2007
Apr. 1, 2007–
Dec. 31, 2007
Cash Flow from Operating Activities
Income before income taxes and minority interests .......................
Depreciation and amortization........................................................
(Increase) decrease in trade notes and accounts receivable,
and costs and estimated earnings on long-term construction
contracts .....................................................................................
Increase in costs of construction contracts in process ...................
Decrease in trade notes and accounts payable .............................
(Decrease) increase in advance receipts on construction
contracts.....................................................................................
Decrease (increase) in jointly controlled assets of joint
ventures..........................................................................................
Other ..............................................................................................
Subtotal ..................................................................................
Interest and dividends received......................................................
Interest paid....................................................................................
Project settlement money paid .......................................................
Income taxes paid ..........................................................................
Net Cash Provided by Operating Activities .......................................
Cash Flow from Investing Activities
Purchases of property, plant and equipment and intangible
fixed assets ....................................................................................
Payments for purchase of investment securities ............................
Proceeds from sales of investment securities ................................
Payments for purchase of subsidiaries’ stock due to changes
in the scope of consolidation ..........................................................
Disbursements for originating long-term loans ...............................
Proceeds from collections of long-term loans ................................
Other - net ......................................................................................
Net Cash Used in Investing Activities .............................................
Cash Flow from Financing Activities
Repayments of long-term debt ......................................................
Proceeds from issuance of common stock.....................................
Payment of cash dividends ............................................................
Payment of cash dividends to minority shareholders .....................
Other - net ......................................................................................
Net Cash Used in Financing Activities ...............................................
Foreign Currency Translation Adjustments on Cashand Cash Equivalents.......................................................................
Net (Decrease) Increase in Cash and Cash Equivalents ............... ..
Cash and Cash Equivalents, Beginning of Period ............................
Cash and Cash Equivalents of Exclusion of Consolidated
Subsidiaries ......................................................................................
Cash and Cash Equivalents, End of Period .......................................

Millions of Yen
3Q FY2006
Apr. 1, 2006–
Dec. 31, 2006

FY2006
Apr. 1, 2006–
Mar. 31, 2007

26,537
1,131

27,571
1,154

37,935
1,507(3,946)(2,159)(5,348)7,534(15,054)(1,674)

8,484(9,728)947(838)

124,831

129,741

17,824(9,471)
23,727743(313)—(20,668)
3,489(108,191)(3,437)32,734
231
(239)
(469)
(5,401)
26,856(124,724)(1,687)42,475
335
(317)
(469)
(6,492)35,531(1,132)(498)
839(1,388)(1,682)—(1,779)(2,419)
32

(115)
—
28
15(863)

—
(15)
596
59
(2,429)

—(15)
609
114
(3,458)(14,149)
6(2,879)
(12)
(147)

(41)
45
(1,914)—(160)(46)
54(1,915)(54)(229)(17,182)(2,069)(2,191)

111(14,444)
77,051

163
22,52046,878357
30,23946,878—62,607(66)
69,332(66)
77,051

7

6. Production, Contracts and Sales (Consolidated)
Millions of Yen
3Q FY2007
Apr. 1, 2007 —Dec. 31, 2007
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

43,373
28,863217
97,61817,761
4,470
15,214
207,518

20.5
13.6
0.1
46.1
8.4
2.1
7.2
98.0

307,396
63,854702
54,21818,225
6,821
3,545
454,764

67.0
13.9
0.2
11.8
4.0
1.5
0.7
99.1

384,875
260,272
1,229
116,478
17,303
3,061
18,928802,149

48.0
32.5
0.1
14.5
2.2
0.4
2.3
100.0

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

4,238

2.0

4,238

0.9

—

—

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

120,046
91,711
211,757

56.743.3
100.0

85,390373,612459,002

18.6
81.4
100.0

178,745
623,404
802,149

22.3
77.7
100.0

Millions of Yen
3Q FY2006
Apr. 1, 2006 —Dec. 31, 2006
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

71,960296,950482
70,721
17,715
13,1898,898
479,918

14.8
61.20.1
14.6
3.7
2.7
1.8
98.9

244,309
17,156
1,251
46,452
11,6574,808
3,453
329,089

73.1
5.1
0.4
13.9
3.5
1.4
1.0
98.4

692,852
311,868
1,840
80,20025,37010,084
7,527
1,129,744

61.3
27.6
0.2
7.1
2.2
0.9
0.7
100.0

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

5,328

1.1

5,328

1.6

—

—

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

133,937
351,308
485,246

27.6
72.4
100.0

65,648
268,769
334,417

19.6
80.4
100.0

165,139
964,604
1,129,744

14.6
85.4
100.0

8

Millions of Yen
FY2006
Apr. 1, 2006 —Mar. 31, 2007
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 .....................

122,045
298,751521
85,251
19,377
13,881
11,091550,922

21.9
53.5
0.1
15.3
3.5
2.5
2.0
98.8

337,92733,646
1,419
68,21020,918
10,172
5,815
478,110

69.7
6.9
0.3
14.1
4.3
2.1
1.2
98.6

646,332
297,016
1,714
73,104
17,7695,413
7,327
1,048,679

61.6
28.3
0.2
7.0
1.7
0.5
0.7
100.0

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

6,785

1.2

6,785

1.4

—

—

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

155,297
402,409557,707

27.8
72.2
100.0

106,550
378,345484,895

22.0
78.0
100.0

145,542903,136
1,048,679

13.9
86.1
100.0Note: The backlog of contracts for the three months ended June 30, 2007 includes a decrease due tochanges in construction contracts acquired in prior fiscal years, an increase due to adjustments in newcontract amounts, and an increase due to foreign exchange translation adjustments.

9