CHIYODA CORPORATION
Annual Report 2007
Fiscal Year Ended March 31, 2007
New Horizons,
Infinite Experience
Photo: Courtesy of RasGas
Contents
Profile.....................................................................................................
Financial Highlights ..............................................................................
1
2
To Our Shareholders and Investors ......................................................
3
Progress Report: Double Step-Up Plan 2008........................................
6
Review of Operations
8
Overseas ...........................................................................................
Domestic .......................................................................................... 10
Projects Logistics.............................................................................. 12
Topics: Increasing LNG Plant Capacity.................................................. 14
Topics: Technologies Update ................................................................ 16
Corporate Governance
Board of Directors, Corporate Auditors and Executive Officers ...... 18
Initiatives to Enhance Corporate Governance............................... 20
Internal Control System .................................................................. 21
Risk Management............................................................................ 22
Corporate Social Responsibility (CSR)............................................. 23
Six-Year Summary of Selected Financial Data ..................................... 24
Management’s Discussion and Analysis
of Operating Results and Financial Condition.................................. 25
Global Network ..................................................................................... 30
Corporate Information.......................................................................... 32
CSR Report
Chiyoda published an annual environment
report until 2005. Since 2006, we have been
publishing a Corporate Social Responsibility
(CSR) Report that introduces our activities relat-
ed to the economy, society, energy and the
environment.
Website
Previous annual reports, CSR reports and investor
relations materials, press releases and other
information about Chiyoda are available on our
website at
http://www.chiyoda-corp.com/en/
Cover Page
LNG Plant Train 5 for Ras Laffan Liquefied Natural Gas Co., Ltd. (II)
(Photo: Courtesy of RasGas)
Forward-Looking Statements
This annual report contains forward-looking statements about Chiyoda Corporation’s outlooks, plans,
forecasts, results and other items that may take place in the future. Such statements are based on data
available as of June 28, 2007. Unknown risks and other uncertainties that happen in the future may
cause our actual results to be different from the forward-looking statements contained in this report. The
risks and uncertainties include business and economic conditions, competitive pressure, changes to laws
and regulations, addition or elimination of products, exchange rate fluctuation, among many more.
Profile
Since its establishment in 1948, Chiyoda Corporation has engaged in engineering and construction work and ser-
vices at numerous industrial plants both in Japan and overseas in the fields of oil, natural gas and other energy
sources; petrochemicals and chemicals; pharmaceuticals; and general industrial machinery.
Thirty-five years ago in 1972, Chiyoda’s founder was already emphasizing that sustainable social development should
progress by harmonizing nature and industrial development in a booklet entitled Legacy for the Twenty-first Century.
We are one of the first companies to state our intention to contribute to sustainable social development through our
engineering and technology by providing appropriate solutions to the various energy and environmental issues we
currently face, and have been putting those words into action ever since. This booklet is available on our website.
With almost 60 years of technological experience, Chiyoda is working to build on its position as the “Reliability
No. 1” project company with a high level of customer and investor trust, not only in terms of technology but also in
terms of our people and management. At the same time, we will continue to improve our financial strength and to
raise our corporate value.
Enhance our business and contribute to the development of a sustainable society as an integrated engineering
company through the use of our collective wisdom and painstakingly developed technology.
Corporate Philosophy
The Chiyoda Group’s Strengths
Superior technologies, including project execution capabilities, and the people that support them
Technological
Superiority
Human
Resources
2. Chiyoda Group
Human Resources
Chiyoda is working to create an environ-
ment in which our people can make their
dreams a reality through engineering. We
cultivate professionals through on-the-job
training and career development programs
according to individual competencies. This
supports our ability to successfully execute
projects.
1. Technological Superiority
Chiyoda’s core elemental technologies
encompass environmentally responsible tech-
nologies, catalysts and energy-saving technologies,
while execution technologies focus on managing
the costs and schedules of projects in progress and
ensuring reliable quality. Our execution tech-
nologies are supported by the most advanced
information technology, which currently applies
to our project execution at every stage from
design and procurement to construction of
ultra-large-scale liquefied natural gas (LNG)*
plants and other facilities. This technology is
embodied in our integrated project engineering
software, “i-Plant 21,” which Chiyoda devel-
oped and continues to enhance. (Please refer
to page 17.)
* LNG is manufactured by liquefying natural gas. Demand for this clean energy is increasing.
1
CHIYODA CORPORATION ANNUAL REPORT 2007
Financial Highlights
Years Ended March 31, 2007, 2006 and 2005
For the Year
Revenues
Cost of revenues
Operating income
Income before income taxes and
minority interests
Net income
At Year-End
Total assets
Total equity
Long-term debt
Working capital
Current ratio (%)
Per Common Share (Yen and U.S. dollars)
Earnings per share (EPS)
Book value per share (BPS)
Dividends per share
Ratios (%)
Return on assets (ROA)
Return on equity (ROE)
Millions of yen
Change
Thousands of
U.S. dollars
2007
2006
2005
2007/2006
2007
¥484,895
445,159
28,700
37,935
¥390,875
360,322
20,729
21,906
¥267,655
247,905
11,078
12,049
24.1%
23.5
38.5
73.2
$4,109,280
3,772,534
243,220
321,483
23,532
19,400
12,863
21.3
199,424
¥442,953
77,415
10,067
66,592
118.9
¥279,721
55,509
10,169
51,431
125.1
¥182,893
36,873
215
22,231
115.9
58.4%
39.5
(1.0)
29.5
(6.2) points
$3,753,839
656,059
85,314
564,339
¥ 122.41
400.56
15.0
¥ 101.27
288.88
10.0
¥ 68.62
193.22
6.0
20.9%
38.7
50.0
$ 1.04
3.39
0.13
10.2%
35.5
10.0%
42.0
7.1%
43.1
0.2 points
(6.5)
Note: 1. U.S. dollar amounts are translated, for convenience only, at the rate of ¥118 = US$1, the approximate exchange rate at March 31, 2007.
2. Yen amounts are rounded down to the nearest million. U.S. dollar amounts and percentages are rounded to the nearest unit.
Operating Income and
Operating Margin
Billions of yen
%
Billions of yen
Net Income and ROE
Revenues by Industry
30
25
20
15
10
5
0
0.9
1.5
03
5.3
5.9
28.7
4.1
20.7
2.8
5.9
11.1
04
05
06
07
Operating Income (left axis)
Operating Margin (right axis)
6
5
4
3
2
1
0
25
20
15
10
5
0
23.5
35.5
43.1
42.0
19.4
12.9
33.7
6.6
12.6
2.0
03
04
05
06
07
Net Income (left axis)
ROE (right axis)
%
50
40
30
20
10
0
Gas & Power
Petroleum &
Petrochemicals
9%
14%
Fine Industries & Others
77%
Revenues by Region
Japan
Middle East
Russia
Asia and Others
3%
10%
22%
65%
2
CHIYODA CORPORATION ANNUAL REPORT 2007
To Our Shareholders and Investors
Takashi Kubota
President & CEO
Chiyoda Is Stepping Up Its Efforts to Become the
“Reliability No. 1” Project Company
The fiscal year ended March 2007 was the second year of Chiyoda’s medium-term management
plan, Double Step-Up Plan 2008 (DSP 2008). We achieved our targets ahead of schedule by steadily
implementing our strategies and initiatives, and revenues and earnings increased for the fourth
consecutive fiscal year. In fiscal year 2008, the third year of DSP 2008, we will further promote our
Reliability Program and work to strengthen risk management. The entire Group will also work in
concert to achieve the twin objectives of being the “Reliability No. 1” project company and a company
able to sustain earnings growth.
As President and Chief Executive Officer of Chiyoda
Career Summary
Corporation from April 1, 2007, my focus is to accelerate
DSP 2008 and the accomplishment of its twin objectives.
We will continue our best efforts to meet all stakeholders’
1969: Joined Chiyoda Corporation
1995: Project General Manager, Second Overseas Project Division
1998: Director; General Manager, Asia & Australia Project Division
2001: Managing Director, International Project Operation
2004: Director; Deputy General Manager, Domestic Project Operation
expectations, and appreciate your continuing support
2005: Managing Director, Technology & Engineering
through fiscal year 2008.
2007: President & CEO
3
CHIYODA CORPORATION ANNUAL REPORT 2007
Fiscal Year 2007 Results:
1. Intellectual Property for the Future:
Increased Revenues and Earnings
Development of Our Business Foundation
Due to increased energy demand worldwide, aggressive
To expand our business foundation, we will leverage
capital investments by the oil, gas and petrochemical indus-
our intellectual assets, consisting of elemental and project
try continued in fiscal year 2007 in both domestic and over-
execution technologies. We continue to sell licenses for
seas markets.
Chiyoda Thoroughbred 121 (CT-121*) in the United States,
In this market environment, Chiyoda was awarded new
and are strengthening sales activities in Europe as well.
contracts for two gas processing plant projects in Qatar. At
(Please refer to page 17.) At the same time, a facility in
the same time, we successfully completed a large-scale liq-
Indonesia started operation as the second commercial plant
uefied natural gas (LNG) plant in Qatar with an annual
applying another type of Chiyoda’s original desulfurization
capacity of 4.7 million tons in world-record time. In Japan,
technologies (CASOX*). Moreover, we plan to support the
our performance exceeded our annual plan for both new
effective development and exploitation of small and medi-
contracts and revenues, mainly in the field of oil and petro-
um-sized gas fields by participating in a national research
chemicals.
and development project with our own CO2 Reforming
As a result, revenues and earnings increased for the
Catalyst*. In addition, we will begin demonstration testing
fourth consecutive fiscal year. The backlog of contracts
on actual equipment of a titania catalyst* for applications
increased 9.2 percent, or ¥88,141 million, to ¥1,048,679
such as sulfur-free diesel fuel, and plan to complete the
million. Consolidated revenues increased 24.1 percent, or
construction of the first commercial facility using acetic acid
¥94,020 million, to ¥484,895 million. Gross profit increased
production technology (ACETICA*) in autumn 2007.
30.1 percent, or ¥9,183 million, to ¥39,736 million due to
In addition, we will continue to develop “i-Plant 21”
the increase in revenues and an increase of 0.4 percentage
project engineering software. In executing current ultra-
points in the gross margin. Net income increased 21.3 per-
large-scale LNG plant projects, we are gaining valuable
cent, or ¥4,132 million, to ¥23,532 million.
experience and project execution technology where “i-
Fiscal Year 2008 Management Policy:
ciency of procurement, materials and shipping manage-
Plant 21” has also generated value by increasing the effi-
New Horizons, Infinite Experience
ment. (Please refer to page 17.)
We expect to complete construction contracts totaling
¥550 billion in fiscal year 2008, one of the highest levels in
2. Environmentally Responsible Technologies:
our company’s history. While executing such a large vol-
Strengthening Core Businesses
ume of projects, we will carefully manage various risks,
As Chiyoda’s founder, Dr. Akiyoshi Tamaki, wrote in
such as the tight market for skilled labor and the difficulties
Legacy for the Twenty-first Century, Chiyoda has never
in securing a sufficient number of workers.
wavered in its commitment to use its technology to con-
Given this environment, I have made “New Horizons,
tribute to society. Today, this commitment encompasses the
Infinite Experience” our slogan for 2008, under which we
broadly recognized concept of corporate social responsibility.
will work to strengthen the foundation of our engineering
Because Chiyoda’s petroleum and gas technologies are
business for the next generation. This slogan implies that
linked to environmental issues such as CO2 emissions, pro-
we will clear the way to the future for the next generation
tecting nature has long been an important component of
by using Chiyoda’s superior technologies and human
Chiyoda’s corporate DNA. From this base, we will sow the
resources. The following introduces our three management
seeds of our next strategies by promoting clean energy (gas),
pillars to accelerate successful completion of DSP 2008
clean fuel and clean coal technologies, as well as enhancing
toward sustained growth and future development.
energy-saving and health and safety technologies.
*Original technologies developed by Chiyoda.
4
CHIYODA CORPORATION ANNUAL REPORT 2007
To Our Shareholders and Investors
From the above perspectives, we are working on
“bottomless” refining technology to produce sulfur-free
fuel and clean fuel from heavy oil, as well as using our
engineering capabilities at the shut down maintenance
(SDM) phase of the refineries, which covers the entire life
of the plant. For domestic chemical refinery integration
(CRI), which integrates large oil refining facilities with
petrochemical plant functions to raise energy efficiency,
we are expanding our domestic services to Asia and the
Middle East. Another focus is the promotion of clean
coal technologies, including power generation and
petrochemical raw materials that employ coal gasifica-
tion. Moreover, in Asia including Japan, Chiyoda will
begin offering a low-grade exergy recovery system for
which it received the Director-General's Award from the
Japanese Agency for Natural Resources and Energy in
2007.
3. People-Oriented Management
Aiming to increase corporate value, Chiyoda is partic-
ularly increasing its focus on safety, together with health,
the environment and quality. We will also enhance our
system of internal controls to comply with the Financial
Instruments and Exchange Law (“J-SOX Act”) while
assiduously implementing CSR-based management by
promoting our initiatives that contribute to society, the
economy and environmental protection.
Securing and cultivating human resources is a critical
issue. The basis of Chiyoda’s career development is on-
the-job training. We assign new employees to train at
overseas construction sites to experience plant engineer-
ing as reality, not merely as a plan on the table.
Thereafter, three-year term rotated assignments allow
each employee to choose to be part of the specialist
An Inspired Engineering Company that Makes
Dreams into Realities
One of Japan’s most pressing tasks will be to ensure its
future by using technology to overcome issues such as its
dependence on external sources of energy and its aging
society. Within this milieu, Chiyoda aims to become an
inspired engineering company. Engineering is the key to
transforming dreams into realities. Chiyoda is a place
where challenging work is a delight and employees have a
sense of achievement.
Continuously Enhance Shareholder Value
We intend to continuously enhance shareholder value
through improved performance while investing in tech-
nologies to create next-generation businesses. In considera-
tion of our current performance, dividends per share for fis-
cal year 2007 were ¥15.00, an increase of ¥5.00 compared
with the previous fiscal year.
“Reliability No. 1, Your Partner for Success” is the
Chiyoda Group rallying cry. We look forward to your con-
tinued support over the medium-to-long term as we work
to further increase shareholder value.
ranks, or aim for project management, depending on
July 2007
their competencies.
Through all the methods and systems it employs,
Chiyoda is preparing an environment in which Chiyoda
people can make their dreams a reality through engi-
neering. This is another important component of
Chiyoda’s corporate DNA.
Takashi Kubota
President & CEO
5
CHIYODA CORPORATION ANNUAL REPORT 2007
Progress Report: Double Step-Up Plan 2008
Double Step-Up Plan 2008 (DSP 2008):
Current Status of the Medium-Term Management Plan
Double Step-Up Plan 2008 (DSP 2008) Progress Report
Aiming to Be the “Reliability No. 1” Project Company and
a Company par excellence Able to Sustain Earnings Growth
Step up the schedule for DSP 2008 and accelerate implementation of key measures from four perspectives
Business Strategy
Current Progress
S1
Clients
Build long-term partnerships with clients
by promoting Plant Lifecycle Engineering
based on superior technologies.
• Further upgrade Reliability Program
Engineering criticality study, Uninterrupted start-up
S2
Execution
Further strengthen project execution
capabilities by promoting Smart EPC* to
utilize the Group’s collective strengths.
• Upgrade risk management skills (Cold Eye Review)
• Upgrade construction IT and procurement IT
• Strengthen Group operations structure (global workforce of 6,300)
• Utilize lessons learned / Promote knowledge management
S3
Finance
Establish a consistently sound financial
position able to support the creation of
next-generation businesses.
• Enrich capital stock
• Enhance profitability of license sales and selectively invest in
new technologies
S4
Human
Resources
Create an energetic organization and
refine employee skills.
• BSC: Balanced Score Card Integrated Management
• Hire/retain professional personnel
* Engineering, Procurement and Construction (EPC)
In the context of LNG projects, the final contracting phase in the development of the export portion of the LNG chain. The project developer will award EPC contracts for
specific phases of the work that define the terms under which the contractor will conduct detailed design, procurement, construction and commissioning of the facilities.
The Chiyoda Group is now executing a medium-term
trillion. The quality and reliability of Chiyoda’s work have
management plan called Double Step-Up Plan 2008 (DSP
been highly appreciated by both domestic and overseas cus-
2008). Since fiscal year 2006, we have been working to
tomers, which has allowed us to continuously acquire new
take a double step up with the objectives of being the
contracts. In Japan, where we have achieved a high level of
“Reliability No. 1” project company and an excellent com-
customer satisfaction, the amount of new contracts has
pany able to sustain earnings growth.
doubled in three years.
Another factor contributing to the continued increase in
1. DSP 2008: Steady Progress
earnings is business process improvement through integrat-
Over the two fiscal years that we have been implement-
ed operation of our group companies. As material and
ing DSP 2008, we have accelerated four key strategies built
equipment costs rise, Chiyoda’s efficient and timely commu-
into DSP 2008 in the areas of clients, execution, finances,
nication with vendors and construction contractors at an
and human resources. We are proceeding smoothly and
earlier stage minimizes risks. Another key factor has been
achieving the objectives of our business plan ahead of
the development of our “i-Plant 21” software. With inte-
schedule.
grated project engineering systems, we are improving our
Among other things, our strong emphasis on the
engineering productivity.
Reliability Program is based on a focus on clients. As a result,
From a financial perspective, Chiyoda increased total equity
we achieved a year-end backlog of contracts exceeding ¥1
to ¥77.4 billion as of March 2007 from ¥55.5 billion a year
6
CHIYODA CORPORATION ANNUAL REPORT 2007
DSP 2008 FINANCIAL PERFORMANCE TARGETS
(Years ended/ending March 31)
Revenues
Operating Income
Net Income
Dividends per Share
Billions of yen
DSP 2008 Projection
Billions of yen
DSP 2008 Projection
Billions of yen
DSP 2008 Projection
Yen
DSP 2008 Projection: At least 10 yen
600
500
400
300
200
100
0
550.0
484.9
390.9
290
310
340
340
06
(Actual)
07
(Actual)
08
(Est.)
09
30
20
10
0
28.7 30.0
20.7
11.5
17.5
20.5
20.5
06
(Actual)
07
(Actual)
08
(Est.)
09
30
20
10
0
23.5 23.5
19.4
10.5
11.0
11.5 11.5
06
(Actual)
07
(Actual)
08
(Est.)
09
20
15
10
5
0
18
15
10
06
(Actual)
07
(Actual)
08
(Est.)
earlier. We are planning to reinforce our financial strength,
2009 and beyond, we are aiming to acquire new contracts
taking into account our future-oriented investments.
that exceed projections for fiscal year 2008.
Lastly, we consider human resources the most important
area for sustaining our growth. We use our balanced score-
3. Progress of Measures under DSP 2008: Established
card comprehensive management system and continue to
a Global Organization of 6,300 People and
make an effort to recruit and cultivate professionals who
Implemented Measures in Four Strategic Areas
can drive project execution.
In April 2007, Chiyoda increased its professional work-
force by 700 people from a year earlier to establish a 6,300-
2. Outlook for Fiscal Year 2008: Continued Solid
person global organization in order to cope with the current
Performance
increased volume of large-scale projects.
Chiyoda’s primary policies for new contracts in fiscal year
Aiming for the DSP 2008 management vision of being
2008 focus on pre-EPC activities such as Front-End
the “Reliability No. 1” project company and a company par
Engineering and Design (FEED*) works for overseas projects,
excellence able to sustain earnings growth, the entire
which we expect to materialize in subsequent years, and
Chiyoda Group is working in concert to implement the four
contracts for large-scale domestic projects. Based on these
perspectives (clients, execution, finance and human
policies, we forecast new contracts totaling ¥250.0 billion.
resources) of DSP 2008.
We believe that market conditions will remain firm due to
medium- and long-term demand for energy. In fiscal year
4. Distribution of Earnings
DSP 2008 targets sustainable satisfaction balanced
among our stakeholders, including customers
and business partners, shareholders, and employees.
Customers and Business Partners
Environment
Society
Chiyoda
Group
Shareholders
Employees
Raise dividends and
corporate value
Economy
Secure talented personnel
and increase motivation
Chiyoda’s earnings distribution policy during the term of
DSP 2008 is to reflect consolidated performance in distributing
earnings while maintaining a balance of satisfaction among all
stakeholders, including shareholders, customers, business part-
ners and employees. For fiscal year 2008, we project cash divi-
dends totaling ¥18.00 per share given the status of our
progress in executing our medium-term management plan
and our expectation that we will achieve its targets.
* Front-End Engineering and Design (FEED)
In the context of LNG projects, generally the second contracting phase in the development of the
export portion of the LNG chain. The FEED contract provides the maximum possible definition for the
work that the EPC contractor will ultimately perform in order to minimize the possibility of contract
cost changes.
7
CHIYODA CORPORATION ANNUAL REPORT 2007
Review of Operations
Overseas
In fiscal year 2007, new contracts totaled ¥402,409 mil-
lion on a consolidated basis, remaining at a high level
despite a decrease of ¥289,101 million, or 41.8 percent,
compared with the previous fiscal year, when Chiyoda
had acquired new contracts for large-scale LNG plants
one year ahead of schedule, resulting in a record high
level of new contracts. Revenues increased ¥92,799 mil-
lion, or 32.5 percent, to ¥378,345 million and the back-
log of contracts increased ¥40,082 million, or 4.6 per-
cent, to a record high ¥903,136 million.
Revenues, New Contracts
and Backlog of Contracts
Billions of yen
1,000
800
600
400
200
0
07
05
06
04
03
Revenues
New Contracts
Backlog of Contracts
Market Trends and Results
LNG Plant Train 5
for Ras Laffan
Liquefied Natural Gas Co., Ltd. (II)
(Photos: Courtesy of RasGas)
In overseas markets, natural gas producing nations and energy majors continued to invest vigorously in
the gas value chain – development of gas fields, construction of LNG plants, arrangements for LNG carri-
ers and construction of LNG receiving terminals – against a backdrop of continuing growth in global
demand for natural gas. Amid these circumstances, Chiyoda received orders for two gas processing plant
projects in Qatar thanks to high customer evaluation of its innovative execution approach using Chiyoda’s
Reliability Program.
As for ongoing projects, in November 2006 Chiyoda completed the 4.7 million tons per annum (mtpa)
LNG plant (Train 5) of Ras Laffan Liquefied Natural Gas Co., Ltd. (II) in Qatar. The entire engineering, pro-
curement and construction (EPC) project was completed in a remarkably short period of 28 months from
the effective date of the contract. Full-scale field construction also began for three other large-scale LNG
plants in Qatar, including two trains each with an annual capacity at the 7.8 million ton level, and a large-
scale LNG project in Sakhalin, Russia.
Regional Activities
Asia: New orders included phase 2 construction of storage tanks in Singapore.
Middle East: In Qatar, Chiyoda demonstrated its overwhelming strength by successfully negotiating and
securing a series of natural gas and LNG related project contracts. Chiyoda acquired contracts for two
large-scale projects – the Al Khaleej Gas Phase 2 project and the Pearl Gas-to-Liquids (GTL) project – by
earning strong customer trust in its vast and unparalleled experience and technical capabilities in large-
scale plant construction gained through completed and ongoing projects, as well as its wealth of techno-
logical expertise that meets specific customer needs.
The Al Khaleej Gas Phase 2 project for ExxonMobil in Qatar is an EPC project. Having already per-
formed front-end engineering and design (FEED) as the joint venture leader, Chiyoda won the Phase 2
contract with French engineering firm Technip. Scheduled for completion in summer 2009, the project is
expected to meet Qatar’s growing demand for natural gas and establish a solid base for the country’s
industrial development.
8
CHIYODA CORPORATION ANNUAL REPORT 2007
Overseas Contracts
Location
Client
MAJOR NEW CONTRACTS
Project
Capacity
Unit
Completion
Qatar
Qatar
Singapore
U.S.A.
U.S.A.
ExxonMobil Middle East Gas Marketing Ltd.
Qatar Shell GTL Ltd.
Vopak Terminal Singapore Pte. Ltd.
Black & Veatch Corporation
Southern Company Services, Inc.
Al Khaleej Gas Phase 2 project
Feed gas preparation works of Pearl GTL project
Integrated Tank Terminal (Phase 2) (Chiyoda Singapore (Pte) Limited)
Licensing of CT-121 Technology for Flue Gas Desulfurization x2
Licensing of CT-121 Technology for Flue Gas Desulfurization x2
1,250* MMSCFD
MMSCFD
1,600
m3
165,000
MW
1,950
MW
1,700
MAJOR BACKLOG OF CONTRACTS
Qatar
Qatar
Qatar
Qatar
Qatar
Qatar
Russia
Russia
Qatar Liquefied Gas Co., Ltd. (2)
Qatar Liquefied Gas Co., Ltd. (2)
Ras Laffan Liquefied Natural Gas Co., Ltd. (3)
Ras Laffan Liquefied Natural Gas Co., Ltd. (3)
Qatar Liquefied Gas Co., Ltd. (3)
Qatar Liquefied Gas Co., Ltd. (4)
Sakhalin Energy Investment Co., Ltd.
Sakhalin Energy Investment Co., Ltd.
LNG Plant (EPC) (Train 4)
LNG Plant (EPC) (Train 5)
LNG Plant (EPC) (Train 6)
LNG Plant (EPC) (Train 7)
LNG Plant (EPC) (Train 6)
LNG Plant (EPC) (Train 7)
LNG Plant (EPC) (Train 1)
LNG Plant (EPC) (Train 2)
MAJOR COMPLETED CONTRACTS
Qatar
Qatar
Ras Laffan Liquefied Natural Gas Co., Ltd. (II)
ExxonMobil Middle East Gas Marketing Ltd.
LNG Plant (EPC) (Train 5)
Al Khaleej Gas Phase 1 project
7.8
7.8
7.8
7.8
7.8
7.8
4.8
4.8
4.7
—
mtpa
mtpa
mtpa
mtpa
mtpa
mtpa
mtpa
mtpa
mtpa
—
2009
2010
2007
2010~
2010~
2007
2008
2008
2009
2008
2009
2008
2008
2006
2006
MMSCFD = Million standard cubic feet per day m3 = Cubic meters MW = Megawatts mtpa = Million tons per annum
*As sales gas
As leader of a consortium with Hyundai Heavy Industries of South Korea, Chiyoda acquired a contract to provide EPC for the feed
gas preparation work of the Pearl GTL project for Royal Dutch Shell in the Ras Laffan Industrial City in Qatar. When completed, this
project will be one of the largest GTL plants in the world, with a daily output of 140,000 barrels. Chiyoda is undertaking to construct
two world-class gas processing trains with a total processing capacity of 800MMSCFD each (1,600MMSCFD in total; equivalent to
annual capacity of 8 million tons of LNG) that will supply feed gas to the core unit of the GTL plant. The project is scheduled for
completion at the end of 2010.
Russia and Central Asia: In 2003, Chiyoda signed a contract for two trains of 4.8mtpa LNG plants in Sakhalin, one of the largest in
the world. Full-scale construction is under way, with completion scheduled for 2008. Russia has the world’s largest natural gas
reserves, and this project, the first of its kind in Russia, will be the cornerstone for subsequent natural gas-related projects in this coun-
try. The experience gained by the Chiyoda Group through its execution will set the stage for securing more contracts in this country.
Other Regions: In the United States, amid a trend toward stronger environmental regulation, Chiyoda continued marketing activities
for its own CT-121 flue gas desulfurization process technology. Unlike EPC, the CT-121 license business entails the supply of technolo-
gy, thereby providing engineering companies with a low-risk business model for achieving steady earnings. Looking ahead, Chiyoda
will use CT-121 and its other technological assets effectively by licensing them to bolster earnings. At the same time, Chiyoda aims to
develop a broad range of businesses in response to tightening energy-related regulations for conservation of the global environment.
Strategies and Initiatives for Fiscal Year 2008
Execution of ongoing projects in fiscal year 2008 will stress the three large-scale LNG projects in Qatar, where onsite construction
is reaching its peak, and two large-scale gas processing plant projects for which Chiyoda acquired contracts in fiscal year 2007. In
parallel with these efforts, Chiyoda will strategically and selectively pursue new contracts, not only in the field of LNG and gas, but
also for petroleum and petrochemical projects such as oil field development, refineries, and production facilities for olefins and other
petrochemicals, for which robust investment is expected.
9
CHIYODA CORPORATION ANNUAL REPORT 2007
Domestic
In fiscal year 2007, new contracts in the domestic market
were ¥155,297 million on a consolidated basis, an
increase of ¥42,577 million, or 37.8 percent, compared
with the previous fiscal year. Revenues increased 1.2 per-
cent to ¥106,550 million. The backlog of contracts also
reached a high level, increasing ¥48,058 million, or 49.3
percent, to ¥145,542 million.
Market Trends and Results
Petroleum
Revenues, New Contracts
and Backlog of Contracts
Billions of yen
200
160
120
80
40
0
07
05
06
04
03
Revenues
New Contracts
Backlog of Contracts
Kashima Aromatics Complex
(Photo: Courtesy of
Kashima Aromatics Co., Ltd.)
In the petroleum sector, smooth progress of ongoing projects resulted in higher earnings. Due to a
strong drive at petroleum companies to invest in facility and expansion to meet market demand, new con-
tracts exceeded initial forecasts, including contracts for new large-scale projects for processing heavy oil
and producing feedstock for petrochemicals and petrochemical products.
Public Utilities
In Japan’s electric power and gas sector, regulatory boundaries have been removed in areas such as
energy supply. In addition, individual and industry-wide efforts to reduce carbon dioxide emissions,
together with persistently high prices for crude oil, have caused a shift to LNG as a fuel. These factors
have stimulated investment in new construction and expansion of large-scale LNG receiving terminal pro-
jects and LNG distribution infrastructure such as satellite terminals. Chiyoda acquired contracts with several
customers for such projects.
Petrochemicals and General Chemicals
In the petrochemical sector, the drive to invest was high due to a significant improvement in corporate
profits as Japanese chemical companies reflected high crude oil prices in petrochemical product prices. In
addition to expansion into China and other Asian markets, a move toward joint investment by chemical
and oil companies in petrochemical businesses was evident. In addition, companies aggressively enhanced
their development efforts to create competitive original products, including specialty chemicals with added
value. Chiyoda unfailingly acquired contracts in fields where it has a technological advantage.
Pharmaceuticals
In the pharmaceutical sector, the drive to invest in production capacity strengthened industrywide
among companies of all sizes in response to significant changes. These included industry realignment due
to mergers, an increase in integration and efficiency of R&D facilities and plants at all companies, enhance-
ment and acceleration of new product development capability, aggressive activity in contract manufactur-
ing, expansion of domestic market share by overseas companies, and the growth of generic drugs.
10
CHIYODA CORPORATION ANNUAL REPORT 2007
MDXA Plant
(Photo: Courtesy of Mitsubishi Gas
Chemical Company, Inc.)
LNG Satellite Terminal (Chiyoda Kosho
Co., Ltd.)
(Photo: Courtesy of Furukawa-Sky
Aluminum Corp.)
Review of Operations
Domestic Contracts
Location
Client
MAJOR NEW CONTRACTS
Project
Capacity
Unit
Completion
Yamaguchi
Chiba
Ibaraki
Tochigi
Shiga
Seibu Oil Co., Ltd.
Fuji Oil Co., Ltd.
Eisai Co., Ltd.
Hisamitsu Pharmaceutical Co., Inc.
Maruho Co., Ltd.
CCR Unit
Expansion of No. 7 Naphtha Hydrodesulfurization Plant
Expansion of L-2 Unit
Utsunomiya No. 2 Plant
Hikone Plant, No. 4 Unit (Chiyoda TechnoAce Co., Ltd.)
MAJOR BACKLOG OF CONTRACTS
Kashima Aromatics Co., Ltd.
Ibaraki
Okayama Mitsubishi Gas Chemical Company, Inc.
Ehime
Japan Oil, Gas and Metals National Corporation
Aromatics Complex Plant
MXDA (m-Xylenediamine) Plant
LPG Underground Storage Terminal in Namikata
25,000
21,000
—
—
—
420,000
20,000
—
MAJOR COMPLETED CONTRACTS
Ehime
Kanagawa
Kanagawa
Taiyo Oil Co., Ltd.
Nippon Petroleum Refining Co., Ltd.
Toa Oil Co., Ltd.
BTX Plant
Lube Oil/Grease Mixing and Filling Plant
Fiscal Year 2006 Regular Maintenance of Mizue Plant (Chiyoda Kosho Co., Ltd.)
37,000
—
—
BPSD = Barrels per stream day TPY = Tons per year
BPSD
BPSD
—
—
—
TPY
TPY
—
BPSD
—
—
2009
2008
2007
2007
2008
2007
2007
2009
2006
2006
2006
With its reliable engineering capabilities, Chiyoda steadily acquired contracts from major customers to
provide consulting and validation services to help them meet FDA requirements.
Industrial Machinery
In the field of electronic components for mobile phones, LCDs and plasma televisions, a specialty area
of Chiyoda, final product manufacturers delayed investment based on careful market assessment. As a
result, projects are in a temporary adjustment phase. However, capital investment in fields such as high-
performance film is expected to remain firm over the medium term. Chiyoda continued to secure con-
tracts for new projects because of its accumulated experience and project management capabilities.
Environment
Chiyoda secured contracts for CT-121 flue gas desulfurization projects as a result of high market
appraisal for this innovative technology.
Strategies and Initiatives for Fiscal Year 2008
In fiscal year 2008, Chiyoda will continue to take up projects that allow it to leverage its technologies
and project management capabilities, and the Company will conduct strategic marketing by concentrating
resources on priority areas and offering design proposals at the early stage of such projects. In the domes-
tic market, Chiyoda will work to increase new contracts for the entire Group and improve overall gross
profit by promoting marketing that is consistent with Group-wide efforts, with a focus on Plant Lifecycle
Engineering.
11
CHIYODA CORPORATION ANNUAL REPORT 2007
Projects Logistics
Unhindered procurement of materials and equipment is key to the steady implementation
of ongoing plant construction projects. While working to establish and inculcate a culture
of safety and to deepen mutual trust with business partners, Chiyoda continues to focus on
four priority initiatives: (1) order management; (2) quality control; (3) schedule control; and
(4) transport management. By doing so, we aim to provide procurement that contributes
to earnings and the realization of our management vision, “Reliability No. 1.”
Performance in Fiscal Year 2007
During fiscal year 2007, we continued to handle our ordering operations based on the proposition, imple-
mented in the previous fiscal year, that ordering should contribute to earnings. At the same time, we carried out
procurement for timely delivery to construction sites of materials and equipment ordered in the previous fiscal
year. We evaluated our overall procurement activities based on indices in more than ten categories, including
products subject to delivery delay and the severity of the delay, the ratio of air freight to total transport cost, and
the rate of divergence between shipping allocation plans and actual performance. As a result, virtually all our
procurement activities proceeded according to plan.
Procurement Risk Factors and Response
Risk factors in the current procurement environment include materials and equipment cost increases, and
reduction in quality from suppliers at full capacity due to ongoing projects. We respond to each of these with
prudent order management and customer consultation, as well as thorough quality and schedule control
based on the abundant manufacturing experience of our seasoned production experts.
Taking its response to these risk factors into account, the Chiyoda Group offers its customers particular val-
Purchase Orders by Product
Purchase Orders by Region
Subcontracts by Category
Fiscal Year 2007
Fiscal Year 2007
Fiscal Year 2007
Instruction of improved auto-welding
machine operation.
Supervision of the welding of a large-scale
reactor.
Pressure vessels
Piping
Rotary motors, devices
Instrumentation
Electrical
Consulting, other
Europe
Asia
Japan
U.S.A./Canada
Middle East
Others
Civil engineering/construction
Piping
Installation
Instrumentation
Insulation/coating
Other construction
Equipment
Electrical
Tanks
12
CHIYODA CORPORATION ANNUAL REPORT 2007
Review of Operations
ue in four areas: (1) price competitiveness (making competitive estimates, ensuring availability, choosing reli-
able suppliers with dependable prices, delivery and quality, finding unusual price fluctuations, and offering
proposals for avoiding risk); (2) formulating cost reduction strategies (supporting project engineers with value-
added procurement information); (3) implementing reliable schedule and quality control and transport man-
agement; and (4) face-to-face procurement services (listening to the project engineer’s requests and respond-
ing directly, and providing up-to-date information on procurement status and suppliers). By doing so, we aim
to be the number-one procurement service in the industry.
In particular, Chiyoda continues to work to strengthen its competitiveness by using its comprehensive informa-
tion technology to improve efficiency and reduce costs. One specific example is MARIAN®, which facilitates inte-
grated management structure and implementation from the assembly of design equipment and supplies to site
loading and unloading. Another is our contingent procurement management systems for across-the-board super-
vision of ordering, schedule, budget and procurement man-hour control, and cost management for procurement
of materials and equipment.
Enhancing Procurement IT (Overview of MARIAN®*)
3D-PDS
MATERIAL CODE
PIPING SPEC
BOM
EQUIPMENT NO.
REQ/SPEC
PO
WH CONTROL
Eng. Database
EDMS
Account System
PROPS
CONSTRUCTION SITE
Current and Future Initiatives
E
P
C
DATA BASE
STANDARD
BOM/MTO
REQUISITION
PURCHASING
EXPEDITE
QUALITY CONTROL
TRANSPORTATION
SITE
MARIAN ®
In the case of 7.8mtpa
ultra-large-scale LNG plant:
Part & component types: 30,000
Number of parts & components: 10 million
RFQ/PO
QUOTATION
MANUF. SCH.
INSPECTION DATA
SHIPPING DATA
SUPPLIER
*MARIAN®: Intergraph Process Power & Offshore.
A procurement and supply chain management solution.
FORWARDER
BOM = Bill of Material
MTO = Material Take Off
REQ = Requisition
SPEC = Specification
3D-PDS = 3-Dimensional Plant Design System
EDMS = Engineering Database Management System
PROPS = Procurement Progress Status Control System
WH = Warehouse
RFQ = Request for Quotation
PO = Purchase Order
Part of the Qatar Project will reach its shipping peak during fiscal year 2008. In response, we will continue
to strengthen our preventative inspection framework at manufacturers’ plants, guided by the two basic
premises of more reliable schedule and quality control as we aim to strengthen our “Reliability No. 1” position. In
addition, we will make full use of our comprehensive information technology system, including our contingent
procurement management systems for delivery of materials and equipment, among other purposes, as we
promote stronger competitiveness through improved efficiency and cost reductions.
13
CHIYODA CORPORATION ANNUAL REPORT 2007
Topics: Increasing LNG Plant Capacity
The Shift to Larger-Scale LNG Plants
Natural Gas (LNG 14) that it had developed AP-X, a new
The cost of producing, transporting and storing LNG is
process for next-generation large-scale LNG plants that
higher than for other fossil fuels. Efforts to reduce costs
enhances the existing C3-MR process it had been licens-
through economies of scale have been ongoing.
ing. This development has had a significant impact on
Commercial LNG production began in 1964, with the
LNG production. Qatargas Trains 4 and 5, which Chiyoda
development of an LNG plant in Algeria by Sonatrach S.A.
is currently constructing in Qatar, both employ the AP-X
Annual production capacity was 400,000 tons. In the
process. Each has a capacity of 7.8mtpa, a substantial
1970s, Chiyoda constructed its first LNG facilities in the
increase in size compared to previous capacities. RasGas
U.A.E., Trains 1 and 2 of an LNG plant for Abu Dhabi Gas
Trains 6 and 7 and Qatargas Trains 6 and 7, a series of
Liquefaction Company (ADGAS), and each has a produc-
projects in Qatar which Chiyoda has acquired contracts
tion capacity of 1.1 million tons per annum (mtpa). Since
for and is currently constructing, will also use the AP-X
then, Chiyoda has been constructing increasingly larger-
process to achieve the same production capacity of
scale LNG plants. In the 1980s, a 1.75mtpa and a 2.3mtpa
7.8mtpa.
plant were constructed at Arun and Bontang in Indonesia.
In the 1990s, ADGAS Train 3 in the U.A.E., and Trains 1, 2
The Technologies Supporting Large-Scale LNG Plants
and 3 of an LNG plant for Qatar Liquefied Gas Co., Ltd.
Dynamic Simulation
(Qatargas) were completed, with capacities ranging from
LNG plant capacity depends on the size of the compres-
2.0mtpa to 2.5mtpa. The scale of LNG plants has contin-
sor, its driver and the heat-exchanger. How these units
ued to grow in the current decade with the completion of
should be configured is a crucial issue in increasing plant
plants for Oman Liquefied Natural Gas LLC (Oman LNG)
size. In conventional engineering, pressure, temperature
and Qalhat LNG S.O.A.C. (Qalhat) in Oman, at 3.3mtpa
and duty specifications for main components are based on
each; Trains 3, 4 and 5 of a plant for Ras Laffan Liquefied
process design data, with a degree of allowance for pre-
Natural Gas Co. Ltd. (RasGas) in Qatar, at 4.7mtpa each;
dicted off-design performance. However, increasing plant
and Trains 1 and 2 of a plant for Sakhalin Energy
size complicates system configurations. To maintain reliabil-
Investment Co., Ltd. in Sakhalin, Russia, now under con-
ity, dynamic simulation is essential for understanding over-
struction, at 4.8mtpa each.
all plant behavior during start-up and emergency shut-
In 2004, Air Products and Chemicals, Inc. (APCI), a
down and to accurately reflect all design elements such as
major licensor of LNG production processes, announced
equipment design conditions, instrumentation plans and
at the 14th International Conference on Liquefied
safeguard systems.
Chiyoda’s Experience in Increasing LNG Plant Capacity
Under Construction
RasGas II Train 3
RasGas II Ras Laffan, Qatar
4.7mtpa 2003
Qatargas 2 Train 4 & 5
Qatargas 2 Ras Laffan, Qatar
7.8mtpa x 2 2007, 2008
Qatargas Train 1 & 2
Qatargas Ras Laffan, Qatar
2.0mtpa x 2 1997
RasGas II Train 4
RasGasII Ras Laffan, Qatar
4.7mtpa 2005
RasGas(3) Train 6 & 7
RasGas(3) Ras Laffan, Qatar
7.8mtpa x 2 2008, 2009
Qatargas Train 3
Qatargas Ras Laffan, Qatar
2.0mtpa 1998
1.1mtpa
1.75mtpa
2.5mtpa
3.0mtpa
ADGAS Train 1 & 2
ADGAS Das Island, U.A.E.
1.1mtpa x 2 1976
ADGAS Train 3
ADGAS Das Island, U.A.E.
2.5mtpa 1994
RasGas II Train 5
RasGas II Ras Laffan, Qatar
4.7mtpa 2006
3.3mtpa 4.7mtpa 4.8mtpa7.8mtpa
Qalhat LNG
Qalhat LNG Qalhat, Oman
3.3mtpa 2005
Qatargas 3&4 Train 6 & 7
Qatargas 3&4 Ras Laffan, Qatar
7.8mtpa x 2 2008, 2009
Arun Train 4 & 5
Pertamina Arun, Indonesia
1.75mtpa x 2 1983
Oman LNG Train 1 & 2
Oman LNG Qalhat, Oman
3.3mtpa x 2 2000
Sakhalin LNG Train 1 & 2
Sakhalin Energy Sakhalin, Russia
4.8mtpa x 2 2008
Bontang Train E, F, G
Pertamina Bontang, Indonesia
2.3mtpa 1989, 1993, 1997
Qatargas Debottlenecking
Qatargas Ras Laffan, Qatar
+1.0mtpa x 3 2003, 2004, 2005
1970 1975
1980
1985
1990
1995
2000
2005
2009
14
CHIYODA CORPORATION ANNUAL REPORT 2007
Correlation between Electrical, Steam and Fuel Systems for an LNG Plant
An Example of Acoustic Fatigue Analysis
Exhaust
HRSG
Inlet air
Fuel
Process air
Gas turbine
G
M/G
VFD
Compressor
X
Transformer
X
Main
electrical
bus
Fuel Boiler
High-pressure
steam header
Steam
turbine
Steam
turbine
Air-cooled condenser
Compressor
Process air
Electrical load
Pump
Compressor
Fan
Process steam (low-pressure)
Air-cooled condenser
Diameter : 50 inch
S, Mises
SNEG, (fraction = -1.0)
(Ave. Crit. : 75%)
+9.777e-01
+8.971e-01
+8.164e-01
+7.358e-01
+6.551e-01
+5.745e-01
+4.938e-01
+4.132e-01
+3.325e-01
+2.519e-01
+1.712e-01
+9.060e-02
+9.950e-03
HRSG (heat recovery steam generator) M/G (motor/generator) VFD (variable frequency drive) G (generator)
Optimizing the Energy Balance
as shown above, Chiyoda used acoustic fatigue analysis
With a capacity of 7.8mtpa, the largest LNG plants in the
(the relationship between sound and structure when the
world require a total of 450MW in electric power as well as the
safety valve is fully open) to develop a suitable reinforcing
thermal equivalent of 300MW of steam energy. An optimal bal-
design for a large-diameter flare pipe for a 7.8mtpa plant.
ance of fuel, electric power and steam energy is therefore
Large-diameter pipes are extremely heavy, so the distribu-
extremely important. The diagram above shows the correlation
tion of pipe weight must also incorporate a consideration
between electric power, steam and fuel systems for a 7.8mtpa
of deformation in concrete beams, which are generally
LNG plant. In this combined cycle system, three 120MW gas tur-
thought to be rigid structures. “Design by analysis,” which
bines drive the compressor while surplus power runs a generator
employs engineering methods backed by advanced analysis
that supplies power to the electrical system via a variable fre-
technologies, is the foundation of Chiyoda’s large-scale
quency drive (VFD). Such hybrid facilities incorporate key VFD
LNG plant designs.
LNG plant technologies that optimize the balance of mechani-
cal, electrical and steam energy by combining mechanical and
Integrated Project Engineering IT Tool
electric power. A wide variety of advanced mechanical, electrical,
In addition to conventional integrated engineering data-
instrumentation, control and other technologies is essential.
bases and 3D design, another extremely important factor in
ultra-large-scale projects is management of large quantities
The Shift from “Design by Rule” to
of equipment and materials such as piping, steel and bulk
“Design by Analysis”
electrical and instrumentation materials. Chiyoda’s original
In conventional equipment, once machinery, piping and
“i-Plant 21” project engineering IT tool plays a key role by
civil and architectural design conditions have been set, cer-
linking equipment and materials management with man-
tain standards and specifications apply. This concept is
agement of design, procurement, onsite construction
called “design by rule.” As the scale of plants increases,
materials and construction. This series of IT tools, which the
however, applying existing rules can result in weaknesses
Company has been developing since the mid-1990s, and
or overdesigned components that have a negative impact
its precise application are what make Chiyoda’s ultra-large-
on other portions of the plant. For this reason, Chiyoda
scale plant construction work possible.
introduced the concept of “design by analysis.” For example,
15
CHIYODA CORPORATION ANNUAL REPORT 2007
Topics: Technologies Update
CO2 Reforming Technology
This patented technology makes it possible to use natur-
al gas and carbon dioxide to produce the synthesis gas
required for GTL technology. Most appealing about this
reforming process is its ability to convert carbon dioxide
into an energy source. A pilot plant began operating in
2001 in the Yufutsu gas field in Hokkaido, Japan and
research at this facility was successfully completed in fiscal
2005. Chiyoda is now making preparations to build a
demonstration plant that may lead to the commercialization
of this technology.
Titania Catalyst
Titania catalyst, jointly developed by Chiyoda and French
company Axens, has a very high activity for hydrodesulfur-
ization (HDS), enabling production of sulfur-free diesel oil at
temperatures around 10-20°C lower than with convention-
al alumina catalyst. Chiyoda licenses titania catalyst for
ultra-deep HDS to Axens and aims to supply it for the treat-
ment of diesel oil to meet the sulfur content regulations
that will be enforced globally in years to come. Sulfur-free
(less than 10 ppm) regulations for diesel oil came into effect
in Japan in 2007. Chiyoda and Axens plan to supply a com-
mercial titania catalyst product globally starting in Europe,
where sulfur-free diesel regulations will be implemented in
2009.
Carbon Dioxide Capture Using LNG Cold Energy
Chiyoda implemented a project for CO2 separation and
integrated utilization of the recovered CO2, using LNG cold
energy, for Nippon Petroleum Refining Co., Ltd. and
Mitsubishi Chemical Corporation. This system separates out
liquefied carbon dioxide from the refinery off-gas, and uses
it as feedstock for petrochemicals production in an integrat-
ed way throughout the complex.
Pilot Plant at Yufutsu
(Photo: Courtesy of JOGMEC)
Titania Catalyst
CO2 and Cold Energy Recovery Unit
(Photo: Courtesy of Nippon Petroleum Refining Co., Ltd.
and Mitsubishi Chemical Corporation)
16
CHIYODA CORPORATION ANNUAL REPORT 2007
Topics
CT-121 Experience
Flue Gas Desulfurization (FGD)
Chiyoda Thoroughbred 121 (CT-121) FGD
process is a unique technology using the wet
limestone-gypsum method for the highly effi-
cient removal of SOx. It is currently in use at
more than 80 generating units in Japan and over-
seas. To date more than 30 licenses were
granted, primarily for coal-fired power stations
in the United States.
• Over 30 years
• 10 countries
• 80 units, 35,990MW
• 21% market share in Japan
• 22% market share in USA
(As of June 2007)
Installed Plants
Under Construction
i-Plant 21
i-Plant 21 is an integrated and intelligent project engineering system for execution throughout
the whole project lifecycle. It provides a uniform platform to realize project engineering with high
quality, low cost and limited schedule. The chart shows the concept for i-Plant 21, which consists
of seven major sub-systems covering front-end engineering to plant completion. It is integrated
electronically and utilizes standardized data and work-flow. The seven major sub-systems are i-
FRONT, i-ENG, i-3D, i-MAT, i-FIELD, i-PMS and i-DMS.
i-FRONT
Front End Engineering
ENGINEERING
i-DMS
Project Document
Management
i-ENG
Engineering Database
i-3D
Integrated 3D Plant Design
PROCUREMENT
CONSTRUCTION
i-MAT
Material Management
i-FIELD
Construction Management
i-PMS
Project Management
17
CHIYODA CORPORATION ANNUAL REPORT 2007
Corporate Governance
Board of Directors, Corporate Auditors and Executive Officers (Fiscal Year 2008)
Board of
Directors
Chairman of the Board
Nobuo Seki
President & CEO
Takashi Kubota*
EVP, CSR
Nobuyasu Kamei*
EVP, Corporate Management &
Finance and CFO
Hiroshi Shibata*
SMD, International Project
Operation
Madoka Koda*
MD, Projects Logistics
Atsuo Minamoto
MD, Technology & Engineering
Sumio Nakashima
MD, Domestic Project Operation
Satoru Yokoi
MD, International Project Operation
Hiroshi Ogawa
Note: All members of the Board of
Directors serve concurrently as
Executive Officers
* Representative Director &
Member of Executive Committee
Corporate
Auditors
Akira Kadoyama
Hiroshi Ida**
Hideaki Fujioka**
Yukihiro Imadegawa**
**Outside Corporate
Auditor
18
CHIYODA CORPORATION ANNUAL REPORT 2007
(As of July 1, 2007)
SEO, Corporate Strategy
Fumio Nagata
SEO, Corporate Management &
Finance
Takaharu Saegusa
SEO, General Manager, Project
Management Administration Division
Masahiko Mochizuki
SEO, General Manager,
Russia Project Division,
Project Director of SEG Team
Hideo Kobayashi
Executive
Officers
EO, Executive Assistant to
International Project Operation
Hidehiro Shinohara
EO, Technology & Engineering
Takeo Kawase
EO, General Manager, Petroleum &
Chemical Project Division
Tsuyoshi Kakizaki
EO, Executive Assistant to
International Project Operation,
Senior Site Manager of RGX6 Team
Wataru Shimono
EO, International Project Operation,
General Manager, Qatar Project
Division 2, Project Director of RGX5
Team & RGX6 Team
Osamu Imahara
EO, International Project Operation
Hiroshi Shimada
Abbreviations:
EVP: Executive Vice President
SMD:Senior Managing Director
MD: Managing Director
SEO: Senior Executive Officer
EO: Executive Officer
EO, Domestic Project Operation,
General Manager, Domestic
Business Development Operation
Eisaku Yamashita
EO, General Manager,
Administration & Personnel Division
Toshiyuki Ohnuma
EO, Deputy Project Director of
SEG Team
Koichi Shirakawa
EO, Projects Logistics
Takao Kamiji
EO, General Manager,
Finance Division
Katsutoshi Kimura
19
CHIYODA CORPORATION ANNUAL REPORT 2007
The Chiyoda Group believes that CSR-oriented management that earns the support and trust of all its stakeholders,
including shareholders, customers, and employees, is the basis of its corporate activities. We are aiming for sustain-
able growth while addressing ongoing management reinforcement and operations safety, and ensuring transparency.
As it accomplishes its medium-term management plan “Double Step-Up Plan 2008,” Chiyoda is also committed to
the core management issues of continuously enhancing corporate governance and upgrading and bolstering its
internal control system.
Initiatives to Enhance Corporate Governance
To ensure accurate execution of its operations, Chiyoda has
adopted the executive officer system to separate the functions
of directors, who are responsible for management supervision,
from those of the executive officers, who are responsible for the
execution of business operations.
The Board of Directors is composed of eight directors,
including four representative directors. The Board supervises the
execution of business activities by the executive officers and
makes decisions on management policies and the execution of
business activities. Some authority has been transferred to the
Executive Committee to expedite decision making about busi-
ness activities and to respond appropriately to rapidly changing
social and economic conditions.
The Executive Committee, made up of the four representa-
tive directors, handles some decision making about business
execution and examines matters before they are submitted for
the resolution of the Board of Directors. In principle, the
Executive Committee meets every week, and met 50 times in
fiscal year 2007.
The executive officers regularly report to the directors on the
status of business execution in their respective areas of authority
at the Board of Directors meeting.
Chiyoda has also adopted the corporate auditor system. The
Corporate Auditors Committee is made up of four members,
including two full-time corporate auditors, and three of the
members are outside corporate auditors. The independent
auditors work closely with the corporate auditors and hold
regular meetings where they report to the Corporate Auditors
Committee, such as meetings on the annual audit plan and the
fiscal year-end audit.
The corporate auditors attend meetings of the Board of
Directors, the Executive Committee and the executive officers,
as well as other important meetings. They express their opinion
on the directors’ execution of their duties from an auditing
point of view as to whether there has been any wrongdoing,
violations of the law or the Company’s articles of incorporation,
or management decisions that run counter to good faith man-
agement principles.
The outside corporate auditors attend meetings of the Board
of Directors, the Corporate Auditors Committee, and the execu-
tive officers. The Board of Directors and the Corporate Auditors
Committee meet monthly; each outside corporate officer attend-
ed more than 90 percent of these meetings in fiscal year 2007.
Incentives for Directors
Chiyoda offers incentives through its performance-linked
compensation system, introduced in 2006.
To increase incentives to further raise company results based
on our management policies, we operate the performance-linked
compensation system within one percent of consolidated net
income, with an upper limit of ¥200 million annually.
Chiyoda’s Corporate Governance System
(Fiscal Year 2007)
General Meeting of Shareholders
Appointment
Report
Appointment
Report
Appointment
Board of Directors
Corporate Auditors Committee
8 Directors
Audit
4 Corporate Auditors,
including 3 outside Auditors
Report
Independent
Auditors
Appointment
Report
Report
Appointment
Report
Audit
Accounting audit
Executive
officers
Representative directors (4)
Executive Committee
Organization for execution
of business activities
20
CHIYODA CORPORATION ANNUAL REPORT 2007
Corporate Governance
Compensation for Directors and Corporate Auditors
Chiyoda’s Internal Control System
A breakdown of compensation made to directors and
corporate auditors in fiscal year 2007 is shown below.
(Millions of Yen)
Number
8
4
Basic
Compensation
196
48
Performance-linked
Compensation
34
—
Directors
Corporate Auditors
Notes: 1. The total amount of compensation was ¥285 million for directors and ¥57 million for cor-
porate auditors. The total amount of compensation for the three outside corporate auditors
was ¥34 million. The total amount of compensation includes the cost of a reserve for retire-
ment benefits for directors and corporate auditors.
2. The compensation limit for directors, excluding the portion paid as salary to directors holding
concurrent positions as employees of the Company, was ¥25 million per month, pursuant to a
resolution of the 73rd Ordinary General Meeting of Shareholders on June 28, 2001. The com-
pensation limit for corporate auditors was ¥7 million per month, pursuant to a resolution of
the 67th Ordinary General Meeting of Shareholders on June 29, 1995.
3. Performance-linked compensation is maintained within one percent of consolidated net
income, with a limit of ¥200 million annually, pursuant to a resolution of the 78th Ordinary
General Meeting of Shareholders on June 22, 2006.
Internal Control System
Chiyoda is continuously improving its internal control
system by ensuring reliability in financial reporting, compli-
ance with laws and regulations and effective and efficient
business operations by managing various risks. Specifically,
the Company implements measures under the framework
outlined below.
Internal Control Steering Committee
The Company established the Internal Control Steering
Committee in May 2006 to strengthen its internal control
system. The committee is composed of the heads of divi-
sions related to internal control and chaired by the manager
of the Operational Auditing Office. The committee mem-
bers exchange information concerning internal control
areas and coordinate internal control activities in each
department for more effective and efficient business opera-
tions under an appropriate internal control system. When
necessary, the committee offers proposals on the internal
control system to the Executive Committee.
Ensuring Reliability in Financial Reporting
The Operational Auditing Office, established in April
2005, supports the establishment of the internal control
system in the Chiyoda Group to fulfill requirements of the
Financial Instruments and Exchange Law that will take
effect in March 2009.
It also plans and implements audits of the entire Group
from an independent perspective based on both the overall
structure and the basic elements of control.
The Operational Auditing Office reports on internal con-
trols to the Executive Committee as well as to the President
and CEO for self-evaluation of the internal control system.
Corporate Governance System
Board of
Directors
Executive Committee
Delegates
Representative
Directors (4)
Proposals
Business promotion
departments
Internal audit
for each area
Group companies
Internal Control Steering Committee
Cooperation with
corporate auditors and
independent auditors
Operational Auditing Office
Export control group
Safety, Quality and Environmental (SQE) Division
Health, Safety and Environment (HSE) Management Office
Quality Management Office
CSR Division
Compliance Management Office
Social Environmental Office
Information Security Management Office
Crisis managers
Project Management Administration Division
Corporate Planning Division
Administration & Personnel Division
Compliance
We have instituted the Chiyoda Group Code of Behavior
and ensure that all officers and employees are familiar with
it. Also, we set company rules as needed, ensure respect for
the laws, regulations and corporate standards, and work to
promote legal and fair business activities.
In addition, to develop a control environment by cohesive-
ly promoting management that stresses CSR at the corporate
level, we have established the CSR Division. It oversees the
Compliance Management Office, Social Environmental Office
and Information Security Management Office.
In order to strengthen CSR and compliance systems in
line with the parent company, Chiyoda also works in collab-
oration with its domestic subsidiaries to build CSR and com-
pliance management structures appropriate to each compa-
ny’s type of operations. To increase the effectiveness of
these structures, Chiyoda also takes measures such as
establishing a compliance counseling and reporting system
shared by the subsidiaries and the parent company.
We have also established the Safety, Quality and
Environmental (SQE) Division to address the risks involved in
compliance in areas including occupational safety and hygiene,
environment and product quality. This Division undertakes such
activities as creating manuals, promoting familiarity with relevant
information, and conducting training and accident/disaster
prevention activities.
In particular, we recognize that, in addition to fulfilling
legal responsibilities, maintaining or improving the safety
and health of all personnel is an essential requirement for
plant construction that leads to a high level of customer
satisfaction, which is the basis of our corporate develop-
ment.
21
CHIYODA CORPORATION ANNUAL REPORT 2007
Risk Management
Information Management
Chiyoda stores and manages business documents and
other information in accordance with document handling
regulations and other internal policies.
For information security management, the Chiyoda
Group manages information assets appropriately according
to the Chiyoda Information Security Management System,
which complies with international information security
management system standards.
Group Management
To ensure appropriate business operations are applied
for the entire Chiyoda Group, we follow a policy of creating
internal control systems for significant Group companies
that are consistent throughout the Group, based on harmo-
nizing their approaches with that of the parent company.
Specifically, we establish organizations that function as
internal control committees, which respond to the type of
operation of each respective company, and work to pro-
mote self-control systems, regularly evaluating the docu-
mentation and status of maintenance and operations of
business flow and risk management. The Group Corporate
Management Division manages and maintains an under-
standing of overall Group management and the
Operational Auditing Office takes overall responsibility for
internal auditing, which is conducted based on a harmo-
nized approach with the parent company.
Cooperation with Audits by Corporate Auditors
The Corporate Auditors Committee designates that
directors or employees report to the corporate auditors con-
cerning the activities of departments related to internal con-
trol of the Chiyoda Group, regularly or as important matters
occur.
In addition, the representative directors regularly meet
with corporate auditors to confirm the effectiveness of cor-
porate auditors’ audits. At such meetings they also discuss
the reports of directors and employees to the corporate
auditors as well as cooperation between the corporate
auditors and the Operational Auditing Office.
The Chiyoda Group works to enhance the structure and
operation of its risk management system in order to handle
the various risks of corporate management and business
operation and to carry out business activities smoothly on
an ongoing basis.
Group Risk Management
Based on Chiyoda’s risk management system and related
manual, risk managers and crisis managers have been
appointed to carry out day-to-day preventative manage-
ment as well as to deal with any incidents and minimize
their consequences.
Project Risk Management
Business at the Chiyoda Group involves the concurrent
execution of numerous projects. Because of this, it is crucial
to predict and address the various risks involved in execut-
ing business as much as possible. Otherwise, business oper-
ation in general would be directly and substantially affected
by a lack of reliable risk management for each project. It is
also important to ensure that the entire company addresses
and limits the effect of risks in the event they materialize
and threaten project execution.
We manage the risk involved in accepting and executing
projects through a system of self controls that includes the
Take-up Review Committee, the Price Estimate Policy
Evaluation Committee and the Proposal Review Board. In
addition, we have also established the Project Management
Administration Division, which conducts risk management
of project execution plans by assuming an internal control
function through project audits and the Chiyoda Group’s
original Cold Eye Review System.
Cold Eye Review System
• Project divisions and others in charge of executing projects clarify and
address their own risks ahead of time, but tend to focus on project execu-
tion itself and may often miss future risks.
• At this point, an administrative department not directly involved in project
execution completes an objective third-party (cold eye) check, then uses
that result and response to guide and advise the project team.
• The result of the check is reported to the management team, which gives
instruction as necessary. This series of activities is referred to as the Cold
Eye Review System.
A cold eye review ensures that a project is in as sound a state as possible by
means of risk analysis based on consistent monitoring from the pre-order
stage, through studies at the start of preparation of estimates or before sub-
mission of bids to the implementation stage, followed by regular audits and
the Milestone Gate Monitoring System* at every stage of the project. The
Chiyoda Group works to strengthen its internal control system and ensure
transparency through risk countermeasures by the departments that execute
these projects and a system of double-checks by administrative departments.
* Milestone Gate Monitoring System: Support and advice given at each stage of project execution.
22
CHIYODA CORPORATION ANNUAL REPORT 2007
Corporate Governance
Corporate Social Responsibility (CSR)
Our Corporate Social Responsibility (CSR) is to realize the
Chiyoda Corporate Philosophy.
Chiyoda Corporate Philosophy
Enhance our business and contribute to the develop-
ment of a sustainable society as an integrated engineer-
ing company through the use of our collective wisdom
and painstakingly developed technology.
Chiyoda Group CSR Vision
As an integrated engineering company, the Chiyoda
Group pledges to constantly strive to increase its corpo-
rate value and earn the trust and understanding of all
stakeholders by adhering to the following principles.
1. A Reliable Company
2. Environmental Initiatives
3. Social Contributions through Business Activities
4. Respect for Human Rights
5. Commitment to Fairness
Efforts for Stakeholders
• For customers: Conduct customer satisfaction surveys
• For shareholders: Participate in conferences with overseas
investors and hold meetings by telephone
• For local communities: Provide internships and local
clean-up activities as well as promote employment oppor-
tunities
• For business partners and related companies: Establish
mutually fair collaboration
• For employees: Conduct employee satisfaction surveys
Wind Power Generation Facility at Koyasu Office & Research Park
Contribution to Global Environment and Society
We have established the Corporate Environmental
Policy, and have addressed global environment problems
through our activities:
• Develop original technologies such as CO2 reforming for
synthesis gas production in the GTL process, flue gas
desulfurization technologies, and titania-based catalyst
for ultra-deep desulfurization of diesel oil, etc., as
explained on pages 16 and 17.
• Provide advanced engineering solutions to increase sup-
plies of LNG, which represents a cleaner energy source
than other major energy sources, using the expertise accu-
mulated at our LNG plant projects shown on page 14.
• Install energy-saving facilities at our offices such as bio-
fueled cogeneration and wind power generation.
Apart from the above, we contribute to society by:
• Localizing plant construction operations, thus transfer-
ring know-how and creating jobs in the communities
where we build plants.
Note: For details, please refer to the CSR Report.
23
CHIYODA CORPORATION ANNUAL REPORT 2007
Six-Year Summary of Selected Financial Data
2007
2006
2005
2004
2003
2002
Millions of yen
Thousands of
U.S. dollars
2007
For the Year
Revenues
¥484,895
¥390,875
¥267,655
¥206,817
¥166,367
¥141,387
$4,109,280
Cost of revenues
445,159
360,322
247,905
192,710
155,924
136,762
3,772,534
Operating income
28,700
20,729
11,078
5,881
1,548
(5,202)
243,220
(loss)
Income before
income taxes and
minority interests
37,935
21,906
12,049
5,370
2,509
1,861
321,483
Net income
23,532
19,400
12,863
6,647
2,000
121
199,424
At Year-End
Total assets
¥442,953
¥279,721
¥182,893
¥142,860
¥120,297
¥129,314
$3,753,839
Total equity
Long-term debt
Working capital
Current ratio (%)
77,415
10,067
66,592
118.9
55,509
36,873
22,767
16,670
15,103
10,169
215
10,316
10,422
10,672
51,431
22,231
15,719
125.1
115.9
115.0
7,526
108.4
1,387
101.4
656,059
85,314
564,339
Per Common Share
(Yen and U.S. Dollars)
Earnings per share
(EPS)
Book value per share
(BPS)
¥122.41
¥101.27
¥ 68.62
¥ 35.91
¥10.79
¥ 0.65
$1.04
400.56
288.88
193.22
123.04
90.01
81.47
3.39
0.13
Dividends per share
15.0
10.0
6.0
—
—
—
Other Statistics
Revenues per employee
¥170.7
¥150.5
¥110.1
¥84.3
¥66.0
¥51.9
$1,446.6
Ratios (%)
Return on assets (ROA)
10.2%
10.0%
7.1%
4.8%
1.9%
(2.5)%
Return on equity (ROE)
35.5
42.0
43.1
33.7
12.6
0.8
Notes: 1. U.S. dollar amounts are translated, for convenience only, at the rate of ¥118 = US$1, the approximate exchange rate at March 31, 2007.
2. Yen amounts are rounded down to the nearest million. U.S. dollar amounts and percentages are rounded to the nearest unit.
24
CHIYODA CORPORATION ANNUAL REPORT 2007
Management’s Discussion and Analysis of Operating Results and Financial Condition
Review of Operating Results
Summary
During fiscal year 2007, the year ended March 31, 2007,
the overseas plant market drew strength from expanding
energy demand worldwide and continued aggressive invest-
ment in the gas value chain by gas-producing countries and
Energy Majors. As a result, new contracts and ongoing pro-
jects remained strong for the Chiyoda Group.
In Japan, new contracts and revenues for the Chiyoda
Group exceeded projections, centered on the petroleum
and petrochemical sectors, because of energetic capital
investment by companies in those sectors.
Although new contracts decreased 30.7 percent com-
pared with the previous fiscal year to ¥557,707 million,
revenues increased 24.1 percent compared with the previ-
ous fiscal year to ¥484,895 million, primarily because major
ongoing projects got fully under way. Operating income
increased 38.5 percent year-on-year to ¥28,700 million as
the gross profit margin increased and the ratio of selling,
general and administrative (SG&A) expenses to revenues
improved. Income before income taxes and minority inter-
ests increased 73.2 percent year-on-year to ¥37,935 million
due to various factors including an increase in interest
income from an increase in jointly controlled assets of joint
venture. Net income increased 21.3 percent compared with
the previous fiscal year to ¥23,532 million.
New Contracts and Revenues
New contracts decreased 30.7 percent compared with
the previous fiscal year to ¥557,707 million. New contracts
overseas decreased 41.8 percent year-on-year to ¥402,409
million, and new contracts in Japan increased 37.8 percent
year-on-year to ¥155,297 million. Revenues increased 24.1
percent compared with the previous fiscal year to ¥484,895
million. Overseas revenues increased 32.5 percent year-on-
year to ¥378,345 million, and revenues in Japan increased
1.2 percent year-on-year to ¥106,550 million.
The following is a summary of engineering operations,
which account for nearly all of the Chiyoda Group’s activities.
Power and Gas
The investment environment was favorable because of
strong demand for gas, with new contracts for two large-
scale gas processing plants in Qatar and new large-scale
projects in Japan. The Chiyoda Group completed a large-
scale plant in Qatar in a short time and began full-scale
construction at projects in Qatar and Sakhalin. As a result,
although new contracts decreased 39.2 percent compared
with the previous fiscal year to ¥420,797 million, revenues
increased 30.6 percent year-on-year to ¥371,574 million.
Petroleum, Petrochemicals and Gas Chemicals
In the petroleum sector, new contracts and revenues
remained steady. In the petrochemical sector, new con-
tracts for chemical refinery integration increased. New con-
tracts increased 16.2 percent compared with the previous
fiscal year to ¥85,773 million, and revenues increased 12.9
percent year-on-year to ¥69,629 million.
General Chemicals and Industrial Machinery
The general chemicals sector was more willing to make
capital investments due to factors including industry reorga-
nization and structural reform. In the industrial machinery
sector, capital investment remained solid. New contracts
increased 25.6 percent compared with the previous fiscal
year to ¥33,258 million, and revenues decreased 2.5 per-
cent year-on-year to ¥31,090 million.
Environment and Others
In the environment sector, Chiyoda’s internally developed
flue gas desulfurization process, CT-121, continued to con-
tribute to revenues. As a result of this and other factors, new
contracts increased 55.5 percent compared with the previous
fiscal year to ¥11,091 million, while revenues decreased 27.9
percent year-on-year to ¥5,815 million.
Gross Profit
Gross profit increased 30.1 percent compared with the
previous fiscal year to ¥39,736 million. Primary factors
included the increase in revenues and improvement in the
gross profit margin, which rose 0.4 percentage points to
8.2 percent from 7.8 percent for the previous fiscal year.
25
CHIYODA CORPORATION ANNUAL REPORT 2007
SG&A Expenses and Operating Income
Income Taxes and Net Income
SG&A expenses increased 12.3 percent compared with
the previous fiscal year to ¥11,036 million. Factors included
an increase of ¥497 million in personnel expenses and an
increase of ¥393 million in research and development
expenses. However, greater efficiency among administrative
divisions supported an improvement of 0.2 percentage
points in the ratio of SG&A expenses to revenues to 2.3
percent from 2.5 percent for the previous fiscal year.
As a result of the above, operating income increased
38.5 percent compared with the previous fiscal year to
¥28,700 million because of higher revenues and improve-
ments in the gross profit margin and in the ratio of SG&A
expenses to revenues. The operating margin increased 0.6
percentage points to 5.9 percent from 5.3 percent for the
previous fiscal year.
Other Income (Expenses) and Income before Income
Taxes and Minority Interests
Other income – net improved to ¥9,235 million from
¥1,177 million for the previous fiscal year. Interest and divi-
dend income increased to ¥8,511 million from ¥2,668 mil-
lion for the previous fiscal year because of increased interest
income from jointly controlled assets of joint venture. Net
financial income, calculated as interest and dividend income
less interest expense, therefore increased to ¥8,201 million
from ¥2,366 million for the previous fiscal year. Equity in
earnings of associated companies increased to ¥375 million
from ¥193 million for the previous fiscal year. Foreign
exchange loss increased to ¥629 million from ¥174 million
for the previous fiscal year because the approximate
exchange rate of ¥118 to US$1 as of March 31, 2007 rep-
resented a depreciation of ¥1 from a year earlier and
because of hedging costs for comprehensive forward for-
eign exchange contracts. However, loss on partial termina-
tion of a defined benefit pension plan totaling ¥1,995 mil-
lion in the previous fiscal year did not recur.
As a result, income before income taxes and minority
interests increased 73.2 percent compared with the previ-
ous fiscal year to ¥37,935 million.
Current income taxes increased 262.0 percent compared
with the previous fiscal year to ¥16,209 million, primarily
because of the increase in income before income taxes and
minority interests. Deferred income taxes decreased to
¥1,866 million because deferred tax assets were reassessed
and recalculated to determine the amount that is likely to
be recovered based on projected taxable earnings in the
three-year period ending March 2010. Income taxes net of
deferrals therefore increased to ¥14,343 million.
As a result of the above, net income increased 21.3 per-
cent compared with the previous fiscal year to ¥23,532 mil-
lion. Net income per share increased to ¥122.41 from
¥101.27 for the previous fiscal year.
Results by Geographic Segment
Revenues by geographic segment exclude intersegment
revenues.
In Japan, the Chiyoda Group’s backlog of contracts was
strong, and revenues increased 25.9 percent compared
with the previous fiscal year to ¥476,813 million. Operating
income increased 29.0 percent year-on-year to ¥28,191
million.
In Asia, revenues decreased 33.7 percent compared with
the previous fiscal year to ¥8,082 million. Operating income
totaled ¥507 million, compared to an operating loss total-
ing ¥1,051 million for the previous fiscal year.
In North America, all revenues were eliminated upon
consolidation, centered on intra-Group support including
communication among sales operations. Operating income
totaled ¥2 million, compared to a marginal operating loss in
the previous year, mainly because of the small scale of
activities.
In other regions, the Chiyoda Group operated with only
personnel needed for communication. All revenues were
eliminated upon consolidation. There was no operating
income, compared to an operating loss of ¥17 million for
the previous fiscal year.
26
CHIYODA CORPORATION ANNUAL REPORT 2007
Management’s Discussion and Analysis
Research and Development Activities
Chiyoda Corporation and Chiyoda Advanced Solutions
Corporation undertake research and development activities
for the Chiyoda Group. They work in the three main areas
of (1) energy and the environment; (2) new chemical sec-
tors; and (3) stronger engineering capabilities, with the
objective of developing products and technologies that con-
tribute in ways such as uncovering business, promoting
contracts, increasing added value and establishing techno-
logical advantages.
The Chiyoda Group employs approximately 50 research
and development staff, primarily at its Research and
Development Center. Research and development expenses
(excluding consumption taxes) increased 48.5 percent com-
pared with the previous fiscal year to ¥1,204 million.
Dividend Policy
The Chiyoda Group works to consistently develop itself
and create next-generation businesses as a growing, prof-
itable company. The Chiyoda Group also works constantly
to maintain a strong financial structure by adding to inter-
nal reserves while considering shareholder returns in paying
dividends.
The Chiyoda Group paid cash dividends totaling ¥15.00
per share for the year ended March 2007. Moreover, the
Chiyoda Group expects to pay cash dividends totaling
¥18.00 per share for the year ending March 2008.
Sources of Capital and Liquidity
Capital Requirements and Financial Policy
Costs associated with domestic and overseas plant con-
struction orders represent the Chiyoda Group’s primary
capital requirement. SG&A expenses are another major cap-
ital requirement, including personnel expenses such as
employee salaries and benefits, and subcontracting expens-
es. Personnel expenses associated with employees engaged
in research and development are the primary component of
the Chiyoda Group’s research and development expenses.
The Chiyoda Group currently funds working capital, cap-
ital expenditures and other capital requirements using inter-
nal capital resources and external borrowings. The Chiyoda
Group has prepared for future working capital require-
ments by establishing a short-term committed line of credit
totaling ¥15.0 billion.
Moreover, the Chiyoda Group expects to deploy internal
capital resources to fund planned capital expenditures relat-
ed to investment in information technology.
At present, the Chiyoda Group believes that its new con-
tract performance, financial position, ability to generate
cash from operating activities and unused portion of the
short-term committed line of credit will provide sufficient
access to the capital required to fund growth.
Cash Flow
Net cash provided by operating activities increased to
¥35,532 million from ¥5,237 million for the previous fiscal
year. Increase in jointly controlled assets of joint venture
used cash totaling ¥124,724 million, a significant increase
from the previous fiscal year as a result of an increase in
large-scale joint venture projects. However, income before
income taxes and minority interests increased to ¥37,935
million, and depreciation and amortization totaled ¥1,507
million. Moreover, changes in working capital (represented
by the sum of decrease in trade notes and accounts receivable,
and costs and estimated earnings on long-term construction
contracts; increase in costs of construction contracts in
progress; increase in trade notes and accounts payable; and
increase in advance receipts on construction contracts) pro-
vided cash totaling ¥129,445 million.
Jointly controlled assets of joint venture mainly represents
the Chiyoda Group’s share of cash and cash equivalents at
joint ventures. Net cash provided by operating activities prior
to adjustment for jointly controlled assets of joint venture
was ¥160,256 million.
Net cash used in investing activities totaled ¥3,458 mil-
lion. In the previous fiscal year, investing activities provided
net cash totaling ¥1,052 million. Proceeds from collections
of long-term loans decreased to ¥610 million from ¥3,341
million in the previous fiscal year, while payments for pur-
chase of investment securities increased to ¥2,419 million
27
CHIYODA CORPORATION ANNUAL REPORT 2007
from ¥1,273 million for the previous fiscal year. Capital
expenditures for IT-related software and other investments,
calculated as the sum of purchases of property, plant and
equipment and purchase of intangible assets, totaled
¥1,780 million, compared to ¥1,855 million for the previous
fiscal year.
Net cash used in financing activities increased to ¥2,191
million from ¥1,338 million for the previous fiscal year.
Factors included the use of cash totaling ¥1,915 million for
payment of cash dividends in reflection of solid results in
the previous fiscal year.
As a result of the above, cash and cash equivalents at
the end of the year increased by ¥30,173 million from a
year earlier to ¥77,052 million.
Assets, Liabilities and Equity
Total assets increased 58.4 percent from a year earlier to
¥442,953 million. Current assets increased 62.9 percent
from a year earlier to ¥418,037 million. Factors included an
increase in jointly controlled assets of joint venture as a
result of an increase in large-scale joint venture projects, and
the increase in cash and cash equivalents as a result of the
improvement in net cash provided by operating activities.
Net property, plant and equipment increased 5.4 percent
from a year earlier to ¥7,465 million, primarily reflecting IT-
related capital investment. Investments and other assets
increased 9.0 percent from a year earlier to ¥17,451 million,
primarily reflecting an increase in investment securities.
Current liabilities increased 71.3 percent from a year ear-
lier to ¥351,445 million. Factors included an increase of
¥129,839 million in advance receipts on construction con-
tracts to ¥231,818 million. Moreover, notes and accounts
payable – trade increased ¥911 million from a year earlier
to ¥86,813 million, and income taxes payable increased
¥9,081 million from a year earlier to ¥13,071 million. Non-
current liabilities decreased 24.6 percent from a year earlier
to ¥14,093 million. Factors included a decrease in liability
for retirement benefits of ¥6,116 million from a year earlier
to ¥2,277 million. Interest-bearing liabilities, calculated as
the sum of the current portion of long-term debt and long-
term debt, decreased 0.5 percent from a year earlier to
¥10,164 million.
Total equity increased 39.5 percent from a year earlier to
¥77,415 million. A primary factor was an increase of
¥21,521 million in retained earnings as a result of the
increase in net income. As of March 31, 2007, the ratio of
total equity to total assets decreased 2.3 percentage points
from a year earlier to 17.5 percent.
Outlook for the Year Ending March 31, 2008
The Chiyoda Group will work to balance the execution
of ongoing projects with efforts to obtain new contracts for
projects in which the Chiyoda Group can exercise its tech-
nological excellence.
Among ongoing projects, the Chiyoda Group aims to
counter rising material costs and a shortage of construction
workers to move forward as planned with three ultra-large-
scale LNG projects in Qatar. We will also work to steadily
execute other projects in Japan and overseas.
Given these conditions, and assuming an exchange rate
of ¥115 to US$1, for the year ending March 31, 2008 the
Chiyoda Group projects consolidated new contracts of
¥250,000 million, consolidated revenues of ¥550,000 mil-
lion, consolidated ordinary income of ¥38,500 million, and
consolidated net income of ¥23,500 million.
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 to the maximum extent
possible. The Chiyoda Group also moves to respond as
quickly as possible to minimize the impact of issues that
present risks when they occur.
As of June 28, 2007, Chiyoda Group management
acknowledges the issues that may present risks in the
future outlined below and has made them the focus of risk
management.
28
CHIYODA CORPORATION ANNUAL REPORT 2007
Management’s Discussion and Analysis
the world, and improving the skills of construction workers
at each job site.
Terrorism, Conflicts in Neighboring Countries, Strikes,
Anarchy and Natural Disasters
Terrorism or conflicts anywhere in the world may cause
direct losses, delays in procuring or delivering materials and
equipment, threats to the safety of workers on site, cessa-
tion of construction work, and other problems at construc-
tion sites in Japan and overseas. Such incidents could result
in losses and expenses that the Chiyoda Group could not
pass on to clients, which could affect the Chiyoda Group’s
performance.
The Chiyoda Group has structured a threat management
system that includes cooperation with clients and other
related parties to support rapid initial response should such
issues occur.
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, 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 and negotiating contracts
that rationally allocate client responsibility for damages.
Changes in Exchange Rates
In overseas construction projects, construction payments
are often in different currencies than payments for vendors
and / or subcontractors. 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 and receivables.
Rising Equipment and Resource Prices and Material
Shortages
Plant construction entails a time lag between estimates
and bids and orders for equipment, resources, materials
and subcontracted construction. Consequently, actual
prices for equipment and materials may exceed those pro-
jected in estimates and bids. Moreover, restricted supplies
of metals such as copper, nickel, aluminum and zinc may
cause problems including delays in the delivery and mobi-
lization of equipment and materials. Resulting delays in the
progress of construction projects could affect the Chiyoda
Group’s results.
The Chiyoda Group works to avoid and minimize these
risks to the best of its ability by diversifying procurement in
ways such as using multiple suppliers in various regions
worldwide, considering bundled purchases, ordering equip-
ment and materials at an early stage, and structuring coop-
erative relationships with suppliers.
Shortages of Construction Workers and Increased
Subcontractor Expenses
Plant construction entails a time lag between estimates
and bids and orders for subcontracting. Large-scale con-
struction projects can magnify the impact of such time lag,
which may result in labor costs that exceed those projected
in estimates and bids. In particular, lack of qualified, skilled
workers may require countermeasures that increase costs.
The Chiyoda Group works to minimize the impact of
these issues by structuring cooperative relationships with
qualified construction companies, deploying personnel
skilled in various professions from various regions around
29
CHIYODA CORPORATION ANNUAL REPORT 2007
Global Network
(As of July 1, 2007)
Head Office
Yokohama Head Office
12-1, Tsurumichuo 2-chome, Tsurumi-ku
Yokohama 230-8601, Japan
Tel:
(81) 45-521-1231
Fax: (81) 45-503-0200
Koyasu Office & Research Park
13, Moriya-cho 3-chome, Kanagawa-ku
Yokohama 221-0022, Japan
Tel:
(81) 45-441-1268
Fax: (81) 45-441-1297
Research & Development Center
Tel:
(81) 45-441-9132
Fax: (81) 45-441-9728
Osaka Office
14-10, Nishinakajima 5-chome, Yodogawa-ku
Osaka 532-001, Japan
Tel:
(81) 6-6390-3411
Fax: (81) 6-6889-5101
Overseas Offices
Abu Dhabi Office
Clock Tower Bldg. Al Najda Street
Abu Dhabi, U.A.E., P.O. Box 43928
Tel:
(971) 2-671-7161
Fax: (971) 2-671-7162
Beijing Office
Room No. 1028, China World Tower 1,
Jianguomenwai Street, Beijing, 100004,
China
Tel:
(86) 10-6505-2678
Fax: (86) 10-6505-1118
Jakarta Office
9th Floor, MidPlaza Bldg. Jalan Jenderal
Sudirman Kav. 10-11 Jakarta, 10220,
Indonesia
Tel:
(62) 21-570-7579
Fax: (62) 21-570-6276
Korea Representative Office
1358-8, Tal-dong Nam-ku Ulsan, Korea
Tel:
Fax: (82) 52-256-5723
(82) 52-256-5721/5722
Middle East Headquarters Doha Office
Al Mana Tower Airport Road, Doha Qatar,
P.O. Box 20243
Tel:
Fax: (974) 4622-716
(974) 4622-875/6
The Hague Representative Office
Chiyoda Petrostar Ltd.
Parkstraat 83, 2514 JG
The Hague, The Netherlands
Tel:
(31) 70-385-9453
Fax: (31) 70-346-3779
Major Subsidiaries & Affiliated
Companies
Overseas
Engineering Business
Chiyoda Corporation (Shanghai)
29F-Room E, Pufa Tower, No. 588,
Pudong Rd. (S), Pudong New Area,
Shanghai 200120, China
Tel:
(86) 21-5877-6266
Fax: (86) 21-5877-6366
Chiyoda International Corporation
Services: Business activities in the U.S.A.
1177 West Loop South, Suite 680
Houston, TX 77027, U.S.A.
Tel:
(1) 713-965-9005
Fax: (1) 713-965-0075
Chiyoda Malaysia Sdn. Bhd.
Services: Design and construction for orders
received in Malaysia
15th Floor, Menara Maxisegar Jalan Pandan
Indah, 4/2 Pandan Indah, 55100
Kuala Lumpur, Malaysia
Tel:
(60) 3-4297-0988
Fax: (60) 3-4297-0800
URL: http://www.chiyoda.com.my/
Chiyoda Nigeria Limited
Services: Construction of industrial facilities in
Nigeria
Abuja Office
C/O Peniel Apartments Room No. B2C Plot 171,
IBB Way, Adetokunbo Ademola Crescent,
Wuse I I, Abuja, Nigeria
Tel:
(234) 9-4130961
Fax: (234) 9-4130961
Lagos Office
Lindev Plaza 1st Floor
16, Amodu Ojikutu Street
Off Bishop Oluwole Street, Victoria Island,
Lagos, Nigeria
Tel:
Fax: (234) 1-2612565
(234) 1-2613291/2612565/4627238
Services: Design and construction of industrial
facilities for orders received in Saudi
Arabia
Al-Khobar Office
P.O. Box 31707, Al-Khobar 31952
The Kingdom of Saudi Arabia
Tel:
(966) 3-864-0839
Fax: (966) 3-864-0986
Jeddah Head Office
P.O. Box 6188, Jeddah 21442
The Kingdom of Saudi Arabia
Tel:
(966) 2-647-0558
Fax: (966) 2-647-1908
Tlx: 601062 MOTSIM
Chiyoda Philippines Corporation
Services: Design services related to overseas
projects
Chiyoda Bldg. Meralco Avenue Corner,
General Araneta Street, San Antonio,
Pasig City, Metro Manila, Philippines
Tel:
(63) 2-636-1001/8
Fax: (63) 2-636-1013/1023
URL: http://www.chiyodaphil.com.ph
Chiyoda Singapore (Pte) Limited
Services: Design and construction of industrial
facilities
14 International Business Park Jurong East,
Singapore 609922
Tel:
(65) 6563-3488
Fax: (65) 6567-5231
URL: http://www.chiyoda.com.sg/
Chiyoda (Thailand) Limited
140/39 ITF Tower II, Suite H 18th Floor,
Silom Road, Kwaeng Suriyawong,
Khet Bangrak, Bangkok 10500, Thailand
Tel:
Fax: (66) 2-231-6260
(66) 2-231-6258/6259
L&T-Chiyoda Limited
Services: Design services related to overseas
projects
B.P. Estate, National Highway No. 8, Chhani
Baroda-391740, Gujarat State, India
Tel:
Fax: (91) 265-2774985
(91) 265-2771003/2772855
PT. Chiyoda International Indonesia
Services: Construction of industrial facilities in
Indonesia
MENARA HIJAU, 10th Floor Suite 1001 Jl.
Mt. Haryono Kav. 33 Jakarta Selatan 12770,
Indonesia
Tel:
(62) 21-798-4680
Fax: (62) 21-798-6174
Project Companies
Oman, Qatar, Russia
30
CHIYODA CORPORATION ANNUAL REPORT 2007
Milan Representative Office
Chiyoda & Public Works Co., Ltd.
Viale Della Liberazione 18, 20124 Milan, Italy
Tel:
(39) 02-303517-111
Fax: (39) 02-303517-35
Singapore Human Resources Office
10 Anson Road, #03-02, International Plaza,
Singapore 079903
Tel:
(65) 6324-0080
Fax: (65) 6324-0090
Services: Industrial design and construction
for orders received in Myanmar
SEDONA HOTEL Room 307 ~ 309 No. 1,
Kaba Aye Pagoda Road, Yankin Township,
Yangon, Myanmar
Tel:
(95) 1-545605
Fax: (95) 1-545227
The Netherlands
Italy
Korea
China
Russia
Japan
Saudi Arabia
Oman
India
Myanmar
Nigeria
Malaysia
U.A.E.
Qatar
Thailand
Philippines
Singapore
Indonesia
U.S.A.
Head Office
Overseas Offices
Project Companies
Subsidiaries & Affiliated Companies
Domestic
Major Subsidiaries & Affiliated
Companies
Domestic
Engineering Business
Chiyoda Advanced Solutions Corporation
Services: Advanced engineering consulting
1-25, Shinurashima-cho 1-chome
Kanagawa-ku, Yokohama 221-0031, Japan
Tel:
(81) 45-441-1260
Fax: (81) 45-441-1264
URL: http://www.chiyoda-as.co.jp/
Chiyoda Keiso Co., Ltd.
Services: Electrical and instrumentation
design, construction services
13, Moriya-cho 3-chome, Kanagawa-ku
Yokohama 221-0022, Japan
Tel:
(81) 45-441-1433
Fax: (81) 45-441-1434
URL: http://www.ckc.chiyoda.co.jp/
Chiyoda Kosho Co., Ltd.
Services: Domestic construction and
maintenance
34-26, Tsurumichuo 4-chome, Tsurumi-ku
Yokohama 230-0051, Japan
Tel:
(81) 45-506-7662
Fax: (81) 45-506-7667
URL: http://www.cks-ykh.co.jp/
Chiyoda TechnoAce Co., Ltd.
Services: Pharmaceuticals, civil engineering
construction for domestic oil facilities
Arrowhead International Corporation
Services: Travel services, shipping and air
freight agent
13, Moriya-cho 3-chome, Kanagawa-ku
Yokohama 221-0022, Japan
Tel:
(81) 45-441-9600
Fax: (81) 45-450-5236
URL: http://www.cta.chiyoda.co.jp/
7-8, Shibakoen 1-chome, Minato-ku
Tokyo 105-0011, Japan
Tel:
(81) 3-5470-0880
Fax: (81) 3-5470-0890
URL: http://www.arrowhead.co.jp/
Chiyoda U-Tech Co., Ltd.
Arrow Mates Co., Ltd.
Services: Consulting and human resources
Services: Placement of technicians and office
placement services
15-19, Tsurumichuo 2-chome, Tsurumi-ku
Yokohama 230-0051, Japan
Tel:
(81) 45-502-7618
Fax: (81) 45-503-5399
URL: http://www.utc-yokohama.com/
Other Businesses
Arrow Business Consulting Corporation
Services: Consulting services for finance and
accounting
32-1, Tsurumichuo 4-chome, Tsurumi-ku
Yokohama 230-0051, Japan
Tel:
(81) 45-502-5774
Fax: (81) 45-502-5753
staff; educational research, re-
employment support and administra-
tive, personnel and procurement
services
43, Hon-cho 4-chome, Naka-ku
Yokohama 231-0005, Japan
Tel:
(81) 45-662-1126
Fax: (81) 45-662-1173
URL: http://www.arrowmates.co.jp/
IT Engineering Limited
Services: Business and system development,
computer management, information
management
1-25, Shinurashima-cho 1-chome, Kanagawa-ku
Yokohama 221-0031, Japan
Tel:
(81) 45-441-9123
Fax: (81) 45-441-1466
URL: http://www.ite.co.jp/
31
CHIYODA CORPORATION ANNUAL REPORT 2007
Corporate Information
(As of March 31, 2007)
Chiyoda Corporation
Head Office:
12-1, Tsurumichuo 2-chome Tsurumi-ku
Yokohama 230-8601, Japan
Tel: (81) 45-521-1231
Fax: (81) 45-503-0200
Established:
January 20, 1948
Paid-in Capital:
¥12,928 million
Number of Employees:
1,222 (Non-Consolidated)
2,947 (Consolidated)
Annual Fiscal Close:
March 31
Shareholders’ Meeting:
June
Number of Shares per Unit:
1,000
Stock Code:
ISIN:
JP3528600004
SEDOL 1:6191704 JP
6366
TSE:
Transfer Agent of Common Stock:
Mitsubishi UFJ Trust and Banking
Corporation
1-4-5 Marunouchi, Chiyoda-ku, Tokyo
Authorized Shares:
650,000,000
Capital Stock Issued:
193,125,529
Number of Shareholders:
12,461
URL:
http://www.chiyoda-corp.com
ORGANIZATIONAL CHART
Shareholders’ Meeting
Corporate Auditors Committee
(As of July 1, 2007)
Board of Directors
Executive Committee
SQE Division
CSR Division
Operational Auditing Office
Corporate Management & Finance
Technology & Engineering
Projects Logistics
Corporate Planning Division
Administration & Personnel Division
Finance Division
Project Management Administration Division
Research Institute of Technology
Innovation & Strategy
Procurement Division
Technology Planning Division
Process Technology Division
Engineering Division
International Project Operation
Domestic Project Operation
Petroleum & Chemical Project Division
Project Service Division
Domestic Business Development Operation
Gas Value Chain Project Division
Construction Division
Domestic Projects - Oil & Petrochemical
Qatar Project Division 1
International Business Development
Qatar Project Division 2
International Business Development Division 1
Russia Project Division
International Business Development Division 2
Domestic Projects - Pharmaceutical/
Fine/Energy Industries
Domestic Projects - Liquefied Gas Terminal
International Business Development Division 3
32
CHIYODA CORPORATION ANNUAL REPORT 2007
MAJOR SHAREHOLDERS
Breakdown by Shareholder
Mitsubishi Corporation
Mitsubishi UFJ Trust and Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Master Trust Bank of Japan, Ltd. (Trust Account)
Japan Trustee Services Bank, Ltd. (Trust Account)
State Street Bank and Trust Company 505103
State Street Bank and Trust Company
Tokio Marine & Nichido Fire Insurance Co., Ltd.
BNP PARIBAS Securities (Japan) Limited
Meiji Yasuda Life Insurance Company
Number of shares
Percentage of
total (%)
19,851,220
10.27
9,034,000
9,033,925
8,862,000
8,745,000
7,253,899
5,795,749
2,760,844
2,756,000
2,549,960
4.67
4.67
4.58
4.52
3.75
3.00
1.42
1.42
1.32
11.25%
29.24%
Total
193,125
thousand
38.69%
17.47%
3.35%
Financial institutions
Securities companies
Other corporations
Foreign companies and foreign individuals
Individuals and others
Monthly Stock Price Range on the Tokyo Stock Exchange
(Yen)
High
High
Opening
Closing
Closing
Opening
Low
Low
Blue: Opening Price > Closing Price
White: Closing Price > Opening Price
Nikkei average (closing price)
4 5 6 7 8 9 10 11
12
1
2 3 4 5 6 7 8 9 10 11
12
1
2 3 4 5 6 7 8 9 10 11
12
1
2 3 4 5 6 7 8 9 10 11
12
1
2 3 4 5 6 7 8 9 10 11
12
1 2 3
FY2003
FY2004
FY2005
FY2006
FY2007
Monthly Trading Volume
(Thousands of Shares)
(Yen)
16,000
12,000
8,000
4,000
0
4 5 6 7 8 9 10 11
12
1
2 3 4 5 6 7 8 9 10 11
12
1
2 3 4 5 6 7 8 9 10 11
12
1
2 3 4 5 6 7 8 9 10 11
12
1
2 3 4 5 6 7 8 9 10 11
12
1 2 3
FY2003
FY2004
FY2005
FY2006
FY2007
33
CHIYODA CORPORATION ANNUAL REPORT 2007
4,000
3,000
2,000
1,000
0
120,000
100,000
80,000
60,000
40,000
20,000
0
12-1, Tsurumichuo 2-chome, Tsurumi-ku, Yokohama 230-8601, Japan
Tel: (81) 45-521-1231 Fax: (81) 45-503-0200
http://www.chiyoda-corp.com/en/
Printed in Japan with soy ink on
recycled paper.
Chiyoda Corporation and
Consolidated Subsidiaries
Consolidated Financial Statements for the
Years Ended March 31, 2007 and 2006, and
Independent Auditors’ Report
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
12-1, Tsurumichuo 2-chome, Tsurumi-ku, Yokohama 230-8601, Japan
Tel: (81) 45-521-1231 Fax: (81) 45-503-0200
http://www.chiyoda-corp.com/en/
Printed in Japan.