Chiyoda Corporation
Annual Report 2010

Plain-text annual report

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 Annual Report 2010 For the year ended March 31,2010 Profile Since its establishment in 1948, Chiyoda Corporation has engaged in engineer- ing and construction work and services at innumerable industrial plants both in Japan and overseas in the fields of oil, natural gas and other energy sources; pet- rochemicals and chemicals; pharmaceuticals; and general industrial machinery. Thirty-eight years ago in 1972, Chiyoda’s founder was already emphasizing in a booklet entitled Legacy for the Twenty-first Century that sustainable social devel- opment should progress by harmonizing nature and industrial development. We were one of the first companies to state our intention to contribute to sus- tainable 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 over 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. Corporate Philosophy Enhance our business in aiming for harmony between energy and the environment, and contribute to the sustainable development of a society as an integrated engineering company through the use of our collective wisdom and painstakingly developed technology. 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 24, 2010. Unknown risks and other uncertainties that happen in the future may cause our actual results to be different from the forward-looking state- ments contained in this report. The risks and uncertainties include business and economic conditions, competitive pressure, changes in laws and regulations, addition or elimination of products, and exchange rate fluctuation, among others. Contents Profile 2 4 Financial Highlights To Our Stakeholders Topics 8 Won Order for Papua New Guinea LNG Project 8 9 9 Focus on Metallurgical Smelting and Refining Start of Naoetsu LNG Receiving Terminal Construction Project Subsidiary in Brazil Open for Business Corporate Governance Management Structures 10 10 10 12 13 17 54 56 Internal Control Structure Compliance Board of Directors, Corporate Auditors and Executive Officers Management’s Discussion and Analysis Consolidated Financial Statements Global Network Corporate Information *1,*2: Courtesy of Qatargas Operating Company Limited *3: Courtesy of Sakhalin Energy Investment *4: CCR System Construction Project for Seibu Oil’s Yamaguchi Refinery, UOP CCR PlatformingTM unit / UOP PolybedTM PSA unit *1 *2 *3 *4 Financial Highlights Years Ended March 31, 2010, 2009, 2008, 2007 and 2006 Millions of yen Thousands of U.S. dollars 2010 2009 2008 2007 2006 2010 For the Year Revenues ¥312,985 ¥446,438 ¥603,559 ¥484,895 ¥390,875 $3,365,440 Cost of revenue 298,766 427,461 583,035 445,158 360,322 3,212,545 Operating income 1,702 7,227 8,839 28,700 20,729 18,301 Income before income taxes and minority interests Net income At Year-End Total assets 4,714 2,953 9,651 18,991 37,935 21,906 50,695 6,498 9,640 23,531 19,400 31,762 ¥328,174 ¥357,816 ¥378,819 ¥442,952 ¥279,721 $3,528,755 Total equity 149,253 145,917 81,637 77,414 55,508 1,604,871 Long-term debt 10,000 10,004 22 10,067 10,168 107,763 Current ratio (%) 175.2 161.1 115.0 118.9 125.1 Per Common Share (Yen and U.S. dollars) Earnings per share (EPS) ¥11.39 ¥25.58 ¥50.15 ¥122.41 ¥101.27 Book value per share (BPS) 573.61 561.12 422.24 400.56 288.88 Dividends per share 3.5 7.5 10.0 15.0 10.0 $0.04 Ratios (%) Return on assets (ROA) Return on equity (ROE) 1.4 2.0 3.1 5.7 4.7 12.2 10.2 35.5 10.0 42.0 Notes: 1. U.S. dollar amounts are translated, for convenience only, at the rate of ¥93 = US$1, the approximate exchange rate at March 31, 2010. 2. Yen amounts are rounded down to the nearest million. U.S. dollar amounts and percentages are rounded to the nearest unit.  CHIYODA CORPORATION ANNUAL REPORT 2010 Revenues Operating Income Net Income Billions of yen Billions of yen 800 700 600 500 400 390.8 300 200 100 0 603.5 484.8 446.4 313.0 2006 2007 2008 2009 2010 30 25 20 15 10 5 0 28.7 20.7 8.8 7.2 1.7 2006 2007 2008 2009 2010 6 5 4 3 2 1 Billions of yen 30 23.5 20 19.4 10 0 9.6 6.5 3.0 2006 2007 2008 2009 2010 6 5 4 3 2 1 6 5 4 3 2 1 Revenues Revenues Revenues Shareholders’ Equity, Return on Equity (ROE) Revenues and Shareholders’ Equity Ratio Revenues Dividends per Share and Payout Ratio (%) 40 Billions of yen 150 145.5 148.6 (%) 120 Yen 20 Revenues Total Assets and Return on Assets (ROA) Billions of yen 442.9 279.7 378.8 357.8 30 328.1 100 20 10 77.0 81.2 55.5 42.0 50 19.8 35.5 17.4 21.4 12.2 0 0 90 60 45.3 40.7 30 0 5.7 2.0 2006 2007 2008 2009 2010 Shareholders’ Equity Return on Equity (ROE) Shareholders’ Equity Ratio 10.2 10.0 4.7 3.1 1.4 2006 2007 2008 2009 2010 Total Assets Return on Assets (ROA) 480 360 240 120 0 30.7 29.3 15.0 19.9 10.0 10.0 12.3 7.5 9.9 3.5 2006 2007 2008 2009 2010 Dividends per Share Payout Ratio (%) 30 24 18 12 6 0 16 12 8 4 0 Revenues by Industry Revenues by Region LNG Gas Processing *1 Fine Industries*2 Petroleum and Petrochemicals Others 5% 27% 34% ¥312,985 million 10% 24% *1: Classified as “Gas and power utilities” in “Consolidated Financial Results” *2: Classified as “Industrial machinery” and “General chemicals” in “Consolidated Financial Results” Overseas Domestic 46% ¥312,985 million 54% CHIYODA CORPORATION ANNUAL REPORT 2010  To Our Stakeholders Takashi Kubota President & CEO Career Summary 1969: Joined Chiyoda Corporation 1995: 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 2005: Managing Director, Technology & Engineering 2007: President & CEO  CHIYODA CORPORATION ANNUAL REPORT 2010  CHIYODA CORPORATION ANNUAL REPORT 2010 Fiscal 2009 Results From a global perspective, the economic con- ditions in fiscal 2009—the consolidated period ended March 31, 2010—were mixed. In some parts of the world, such as Asia, particularly in China and India, the accelerated pace of recovery was obvious. However, the rally in Europe was lukewarm at best and certainly not hot enough to burn off the recessionary fog that obscured predictions over the direc- tion that the regional economy would take. At home, signs of improvement were evident but lacked the dynamics to support a self- sustained recovery. Consequently, domestic economic conditions remained difficult. Given this backdrop, the operating environ- ment for the Chiyoda Group presented oppor- tunities as well as challenges. On the opportu- nity front, we welcomed the prospect of new contracts, as large-scale investment plans began to crystallize everywhere amid growing future demand for oil and gas. On the challenge front, we faced increasingly fierce competition from South Korean contractors whose growth has been rapid and who maintained a remark- ably competitive position. Capitalizing on the positives and skirting the negatives, the Chiyoda Group successfully picked up contracts for engineering, procure- ment and construction (EPC) services at home and abroad, including a liquefied natural gas (LNG) plant in Papua New Guinea, as well as several contracts for engineering design. The Group also pushed ahead steadily on exist- ing contracts and completed three more trains at super-large LNG plants under construc- tion in Qatar. We have now finished four of the six trains in Ras Laffan, Qatar, including the train completed in f iscal 2008, with each train having an annual production capacity of 7.8 million tonnes. However, in order to meet the delivery schedule for LNG plant Train 6 and Train 7 for Qatargas (3) and (4), the Group was unfortu- nately required to adopt measures, including the hiring of more workers, which significantly eroded the project’s profitability. In light of the disappointing results on this project, the Group will direct its concerted efforts toward offsetting lost income by being more thorough in risk management, by raising profitability on existing projects and working steadily to ease the backlog of new projects. Despite the challenges encountered in fiscal 2009, the value of new contracts rebounded dramatically, soaring 105.0% over fiscal 2008, to ¥429,393 million, on a consolidated basis. The backlog of contracts amounted to ¥536,150 million, up 26.1%. However, revenues fell 29.9%, to ¥312,985 million, operating income tumbled 76.4%, to ¥1,702 million, and net income dropped 54.5%, to ¥2,953 million. Fiscal 2009 Developments Natural Gas and Electric Power In addition to the aforementioned EPC services for the LNG plant in Papua New Guinea, other notable overseas contracts included EPC ser- vices for a gas processing plant in Qatar and engineering design services for a floating LNG plant in Brazil. On the project execution front, the Group pushed forward with the construction of large LNG plants and undertook several engineer- ing design/feasibility studies. Also worth noting, a subsidiary in Qatar began long-term EPC management services for an LNG/gas-processing plant. Long-term services CHIYODA CORPORATION ANNUAL REPORT 2010  support efforts to expand the plant lifecycle engi- neering business that the Group has promoted for many years already. In Japan, major orders included engineering design services associated with the construc- tion of an LNG receiving terminal, and the Group continued to work on existing domestic orders, including construction of three LNG receiving terminals in Niigata and Okayama prefectures. Petroleum, Petrochemicals and Gas Chemicals The Group pooled its resources and expertise to win overseas contracts related to planned investment in petroleum refineries by clients in the Middle East and Southeast Asia. These joint efforts were successful, securing contracts for EPC services on a heavy oil cracking unit in Saudi Arabia and engineering design ser- vices on a desulfurization plant in Singapore. Through the provision of these services, Group companies will broaden the scope of respective capabilities and raise Chiyoda’s reputation as a global operator. Demand narrowed in Japan, reflecting plans by the petroleum sector to realign and idle facili- ties and assume a tougher stance on investment priorities. Nevertheless, the Chiyoda Group was awarded contracts for services associated with industrial complexes and for feasibility studies on projects to enhance competitiveness and make facilities more energy-efficient. Work proceeded smoothly on projects in progress, including the on-schedule comple- tion of a continuous catalyst regeneration-type catalytic reforming unit. General Chemicals, Industrial Machinery, the Environment and Other Sectors The Group has achieved a measure of success in the general chemicals and industrial machinery sectors through its emphasis on renewable energy, particularly solar batteries and solar heat energy. The Group also concentrated on the development of eco-related components for vehicles, such as lithium battery parts and advanced material com- ponents for on-board use, and is also involved in the refining of non-ferrous metals. In the pharmaceuticals sector, the Group has expanded its presence and successfully secured its involvement in planned investment projects to build facilities for antibody drugs and high-activation drugs typical of anti-cancer agents. Management Priorities Although the path toward economic recovery varies region by region, a common trend has emerged in the placement of orders. We are seeing an increase in contracts for large plants, especially from corporations able to take an aggressive approach on investments for future growth. In this business environment, the Group will make every effort to achieve the profit tar- gets stated in the medium-term management plan “Engineering Excellence, Value Creation 2012,” promote growth strategies and reinforce its business fundamentals. Toward this end, we will address the follow- ing four issues in fiscal 2010. 1. Win contracts for new projects We will strive to diversify our overseas pool of contracts, not only with new projects in the LNG and gas sector but also in other sectors, particularly oil and petrochemicals. To underpin this effort, we will strengthen our technology development capabilities, sharpen our cost competitiveness, and apply newly formulated strategies to attract the right type of new people  CHIYODA CORPORATION ANNUAL REPORT 2010 and keep essential existing personnel and hone their skills. In Japan, we will look beyond the existing fields of pursuit, by seeking to utilize overseas offices and expand our scope of activities so that we will be in a prime position to be able to participate in the construction of a broader range of industrial facilities and be selected for projects undertaken by domestic clients who seek to establish a wider presence abroad. 2. Complete work on existing projects The profitability of some ongoing LNG plant construction projects in Qatar has been squeezed significantly by new challenges, notably a shortage of labor, which pushed costs beyond initial estimates. To compen- sate, we will pursue meticulous project man- agement, not only for profit-pinched LNG projects in Qatar but also for more recently acquired large-scale projects under con- struction in other countries. In addition, we will take positive steps to adopt an even stronger stance on safety and ensure that we maintain steady progress on construction work to buttress the trust that our clients have in us. which will help forge a business and execu- tion framework that is more finely tuned to the situation in each region. We will initiate measures to expand the role of overseas offices, particularly design subsidiaries, and will also promote international work demar- cation to improve cost-competitiveness. Return to Shareholders Targeting a payout ratio of 30%, based on con- solidated net income, management subscribes to a dividend policy that emphasizes return to shareholders while retaining sufficient internal reserves to fund future business development. It is with regret, therefore, that the Group’s performance in fiscal 2009 precipitated a drop in dividends, to ¥3.5 per share. Management anticipates a year-end dividend of ¥5 per share for fiscal 2010. I rely on our stakeholders to understand the challenges we still face and realize that we are committed to overcoming these obstacles. On behalf of the Board of Directors, I respectfully ask for your continued support of Chiyoda and the Group it leads. 3. Cultivate new business August 2010 We will focus more on environmental activi- ties, where we already boast superior techno- logical capabilities, and for which we utilize a dedicated internal business execution struc- ture to reinforce our presence in non-EPC businesses. 4. Grow the overseas network We will source adequate personnel to ex- ecute projects and run operations at local subsidiaries throughout the Group network, Takashi Kubota President & CEO CHIYODA CORPORATION ANNUAL REPORT 2010  Topics Won Order for Papua New Guinea LNG Project A signing ceremony took place in December 2009 in Brisbane, Australia, for a pivotal project. The project—to build an LNG plant com- prising two trains each with a capacity of 3.3 million tonnes — is the first in Papua New Guinea and calls for construction of facilities for inlet processing, treating, liquefaction, storage and loading of LNG. Chiyoda formed a joint venture with JGC Corporation to provide a strong and efficient organization for the execution of EPC activi- ties and set the direction that the joint venture would take in this project. The lead investor, Exxon Mobil Corporation, stated at the signing ceremony that the project will be a catalyst for change in Papua New Guinea. It will be exceedingly worthwhile from a local perspective, creating an economic ripple effect that could potentially double the island country’s gross domestic product and establish a solid foundation for industrial growth. Expectations are therefore high, not only for the plant in operation but also for what the joint venture will contribute during the construction process. Signing Ceremony in Brisbane, Australia Singapore Singapore Indonesia Indonesia Papua New Guinea Papua New Guinea Australia Focus on Metallurgical Smelting and Refining sophisticated technologies needed for refin- ing low-grade ore—a process that poses a challenge under existing methods—as well as high-level techniques for extracting specific materials from such ore. With experience in plant construction in countries all over the world, Chiyoda is vigor- ously pursuing and undertaking projects at home and abroad. We have established a solid track record, exemplified by the completion in April 2010 of a titanium refinery in Kyushu, where we were responsible for the construc- tion of key sections of the facility. Titanium Refinery in Kyushu In the last few years, worldwide investment in metallurgical smelting and refining has picked up at an aggressive pace. Companies are particularly interested in the extremely  CHIYODA CORPORATION ANNUAL REPORT 2010 Start of Naoetsu LNG Receiving Terminal Construction Project In July 2009, Chiyoda kicked off a project to construct an LNG receiving terminal for Inpex Corporation. with a solid structure for a stable supply of natural gas through a combination of import- ed LNG and domestic natural gas. In recent years, the soaring price of crude oil and heightened environmental awareness, particularly the wider interest in reducing CO2 with cleaner-burning fuels, have fostered a greater demand for natural gas in Japan. Construction of the Naoetsu LNG Receiving Terminal will enable Inpex to meet demand Chiyoda became involved at preliminary stages, initially in April 2007, with conceptual plans for the terminal and then with engineer- ing designs in August of the same year. After more than 90 meetings, we were awarded the EPC contract for terminal construction. Imported Petroleum and Natural Gas Imported Petroleum (Hundreds of millions of Kl) Imported LNG (millions of tons) 4 3 2 1 0 8,000 6,000 4,000 2,000 0 (FY) 1975 1980 1985 1990 1995 2000 2005 2007 Subsidiary in Brazil Open for Business To reinforce our presence in South America and promote a more multifaceted, organic approach in our contact with Petrobras S.A., we established a subsidiary—Chiyoda do Brasil Representações Ltda.—with represen- tative authority in Rio de Janeiro, Brazil. The opening ceremony was held in July 2009 and drew more than 100 guests, in- cluding the secretary of energy for the state of Rio de Janeiro and a solid turnout from Petrobras—our No. 1 client in the region— comprising half the invited guests. The suc- cess of this event underscores the stellar reputation we have earned from the oil and gas industry and the high expectations that come with this profile. Opening Ceremony in Rio de Janeiro CHIYODA CORPORATION ANNUAL REPORT 2010  Corporate Governance The basic premise behind corporate governance within the Chiyoda Group is that the man- agement practices that underpin operations must emphasize corporate social responsibility (CSR) and earn the trust and support of all stakeholders, including shareholders, customers and employees. We are continuously striving to reinforce our business platform, ensure sound management practices and enhance management transparency in order to sustain quality growth over the medium to long term. The continuous improvement of corporate governance and further fortification of our internal control structure are regarded as priority issues, and we are striving to carry these out. The state of corporate governance within the Company is described below. Management Structures Overview of Corporate Governance System and Reasons for Its Adoption execution of operations. The committee also engages in the preliminary discussion of issues that will be brought before the Board of Directors for final approval. In prin- ciple, the Executive Committee meets weekly. Chiyoda has created its corporate governance system Chiyoda has four corporate auditors, three of that utilizes an internal auditing system in addition to the whom are full-time auditors and three of whom are ex- Board of Directors, corporate auditors, the Corporate ternal auditors. The corporate auditors provide over- Auditors Committee and independent auditors. The sight concerning the general execution of duties by Company has also adopted the executive officer sys- directors. Two of the corporate auditors are independent tem in which executive officers and directors assume executives, and one corporate auditor has considerable separate functions, with the former shouldering re- expertise in finance and accounting. sponsibility for day-to-day operations, thus leaving the latter to focus on decision-making and management supervision. Executive officers provide regular reports Internal Control Structure on the status of operations at the monthly meeting of Chiyoda seeks to maintain an effective and efficient the Executive Committee, at which directors are also operation, ensure reliable financial reporting, comply present. with prevailing laws and regulations, and protect its The Board of Directors, comprising nine directors assets. To this end, the Company has created the follow- including four representative directors, meets once a ing internal control structure, based on the features that month. This management group monitors the activi- define its business activities. ties of executive officers and ensures that decisions pertaining to key management issues are made ratio- nally and efficiently. To accelerate the decision-making Compliance process and fine-tune decisions according to rapidly Chiyoda believes that the trust and affinity it has with changing social and economic conditions, the Board society and customers underpin the foundation of the of Directors delegates some decision-making authority Group’s corporate activities. To ensure that the Group’s to the Executive Committee. business pursuits conform to social standards, man- The Executive Committee, which in principle meets agement seeks unconditional respect from all mem- weekly, consists of four representative directors, and bers of the Group for domestic and international laws it makes decisions within its authority regarding the and regulations, global agreements and internal rules. 10 CHIYODA CORPORATION ANNUAL REPORT 2010 　 Corporate Governance and Internal Control Correlation Chart Compensation for Directors and Corporate Auditors in Fiscal 2009 General Meeting of Shareholders Appointment Discussion, Report Report Directors Board of Directors Appointment Report Appointment Corporate Auditors Corporate Auditors Committee Report Appointment Appointment Audit Audit Appointment Appointment Audit Discussion, Report Executive Officers Board of Executive Officers Representative Directors Executive Committee Regular reports, Regular reports, including results including results Arranges organizations Arranges organizations and human resources and human resources Discussion, Report Delegates (Proposals) Report Investigate, Reference Internal Control Steering Committee Internal controls for each area Business execution divisions (Risk managers) Project Management Administration Dept. Group Operation Management Dept. Corporate Planning Division Self-assessment Administration & Personnel Division G r o u p c o m p a n e s i Finance Division Crisis managers Operational Auditing Office Safety, Quality and Environmental (SQE) Division Health, Safety and Environment (HSE) Management Office Quality Management Office CSR Division Compliance Management Office Social Environment Office Information Security Management Office Export Control Office A c c o u n t i n g a u d i t ( U n i t s w i t h i n t e r n a l c o n t r o l f u n c t i o n ) I n d e p e n d e n t A u d i t o r s Number Basic Compensation Performance- linked Compensation Addition to Reserve for Directors’ and Corporate Auditors’ Retirement Benefits Directors 10 ¥197 million ¥23 million ¥40 million Corporate Auditors 4 ¥74 million — — Notes: 1. Total compensation for directors was ¥276 million and for corporate auditors, ¥77 million. Total compensation for the four outside executives — three external auditors — was ¥55 million. The total compensation amount in this note includes the provision to reserve for directors’ and corporate auditors’ retirement benefits (¥15 million for directors and ¥2 million for corporate auditors) for before the abolition of the Regulations on Retirement Benefits for Directors and Corporate Auditors on June 23, 2009. 2. The number of persons shown above indicates the number of directors and corporate auditors who received payment of compensation during the period under review, including two directors who stepped down upon the conclusion of the 81st Ordinary General Meeting of Shareholders held on June 23, 2009. 3. In addition to that mentioned above, directors' retirement benefits amounting to ¥171 million were paid during the current business year. This amount includes the provision to reserve for directors’ retirement benefits included in the total compensation for directors and corporate auditors shown in securities reports of previous years. To this end, the Company instituted the Group a lawyer available to everyone in the workplace and code of conduct in April 2006 and established the staff who specialize in women’s workplace issues. Compliance Management Office to promote wide- Ordinary General Meeting of Shareholders In the fiscal years ended March 2009 and 2010, the spread understanding of compliance issues. Appointment Discussion, Report Appointment Report Report Board of Directors Appointment Appointment Group companies have access to a compliance- Directors Corporate Auditors Corporate Auditors Committee Report Audit Audit Audit oriented consultation and reporting system (hotline) Appointment Appointment dubbed “Welcome to All about Compliance,” whose Executive Officers purpose is to quickly detect and prevent any unethi- Board of Executive Officers Internal Control Steering Committee Representative Directors Executive Committee Discussion, Report Investigate, Reference (Proposals) Delegates Report Discussion, Report Internal controls for each area Arranges organizations Arranges organizations and human resources and human resources cal conduct or illegal activities, using a framework that Operational Auditing Office Regular reports, Regular reports, Safety, Quality and Environmental (SQE) Division including results including results properly processes reports and consultations regard- Health, Safety and Environment (HSE) Management Office Quality Management Office ing unethical conduct and illegal activities by individuals Project Management Administration Department CSR Division Compliance Management Office Social Environmental Office Information Security Management Office This hotline is operated jointly by 10 Group Export Control Office G r o u Business execution divisions p and organizations. (Risk managers) c o m p a n e s Administration & Personnel Division companies. It has an External Consultation Center with Group Company Management Division Corporate Planning Division Self-assessment Crisis managers Finance Division i ( U n i t s w i t h i n t e r n a l c o n t r o l f u n c t i o n ) n d e p e n d e n t A u d i t o r s Appointment system received reports as follows. I As feedback, Chiyoda reported the measures it took in each case. Regarding work environment improvements Regarding compliance with employment regulations Requests for attention to be drawn to a specific issue A c c o u n t i n g a u d i t Other Total March 2009 March 2010 6 cases 2 cases 0 cases 3 cases 11 cases 3 cases 3 cases 0 cases 2 cases 8 cases Compliance Consultation and Reporting System “Welcome to All about Compliance” Corporate Auditors Executive Committee President & CEO External Consultation Center (Lawyer) Contact Instruction (Remedial Action and Prevention) Report CSR Division/Compliance Management Office Compliance Staff Consultation and Reporting Manager Report Consultation and Reporting Feedback Consultation and Reporting Employees and Temporary Staff (Including Those of Subsidiaries) CHIYODA CORPORATION ANNUAL REPORT 2010 11 Corporate Auditors Executive Committee Executive VP in Charge of CSR External Consultation Center (Lawyer) Contact (Remedial Action and Prevention) Instruction Report CSR Division/Compliance Management Office Compliance Staff Consultation and Reporting Manager Report Consultation and Reporting Feedback Consultation and Reporting Exployees and Temporary Staff (Including Those of Subsidiaries) Board of Directors, Corporate Auditors and Executive Officers (As of July 1, 2010) Board of Directors Corporate Auditors President & CEO Takashi Kubota *1 Hiroshi Ida *3 Executive Vice President Executive Vice President Senior Managing Executive Officer Managing Executive Officer Managing Executive Officer Managing Executive Officer Managing Executive Officer Director Executive Officers Yoichi Kanno *1 Corporate Planning, Management & Finance Wataru Shimono Masanori Ito *3 Yukihiro Imadegawa *3 Hiroshi Shibata *1 CFO Hiroshi Ogawa *1, 2 Project Operations Sumio Nakashima Project Operations Satoru Yokoi Business Development Operation Kazuo Obokata CSR Division, Operational Auditing Office Hiromi Koshizuka *2 Technology Development Business Operation Kazushi Okawa *2 *1: Representative Director/Member of Executive Committee *2: New Appointment *3: Outside Corporate Auditor Managing Executive Officer Manabu Mitani Projects Logistics & Construction Executive Officer Managing Executive Officer Managing Executive Officer Katsutoshi Kimura *2 Corporate Planning, Management & Finance General Manager Finance Division Kenjiroh Miura *2 Project Operations General Manager Project Planning & Administration Managing Executive Officer Shougo Shibuya *2 Technology & Engineering Executive Officer Executive Officer Managing Executive Officer Masahiko Kojima *2 Corporate Planning, Management & Finance General Manager Corporate Planning Division Executive Officer Executive Officer Toshiyuki Ohnuma Office of President Executive Officer Koichi Shirakawa Project Operations General Manager International Project Division 2 Takao Kamiji Technology Development Business Operation Business Development Operation General Manager Strategic Business Development Division Ryosuke Shimizu Project Operations General Manager Group Operation Division Kenji Hotta *2 Corporate Planning, Management & Finance General Manager Corporate Services & HRM Division Katsuo Nagasaka *2 Business Development Operation General Manager Business Development Division 2 Executive Officer Tsuyoshi Kakizaki General Manager Project Management Administration Division Executive Officer Seiichiro Ikeda *2 Technology & Engineering Executive Officer Eisaku Yamashita Business Development Operation General Manager Business Development Division 1 Executive Officer Noriyuki Kasuya *2 Corporate Planning, Management & Finance General Manager Corporate Communication Division 1 CHIYODA CORPORATION ANNUAL REPORT 2010 Management’s Discussion and Analysis Business Results year, and the contract backlog increased by 26.1%, to ¥536,150 million. Revenues decreased by 29.9%, The global economy during the fiscal year ended to ¥312,985 million. Operating income decreased by March 31, 2010 showed some clear signs of recovery, 76.4%, to ¥1,702 million, and ordinary income de- which were especially strong in the Asian countries led creased by 57.7%, to ¥4,837 million. Net income for by China and India. On the other hand, sluggish recov- the period was ¥2,953 million, a 54.5% decrease from ery in European countries continues to exert a negative the previous fiscal year. influence on the economic outlook. Although Japan’s economy has been improving steadily, there are still no signs of a full-fledged recovery in the foreseeable future. Results by Business Segment The business environment surrounding the Chiyoda Natural Gas and Electric Power Group was characterized by rising expectations of win- The main overseas contracts newly awarded to the ning new contracts as more plans for large-scale invest- Chiyoda Group included an EPC contract for an LNG ments began to take shape in various regions of the plant in Papua New Guinea, an EPC contract for a gas world to meet the future demand for oil and gas. On the processing plant in Qatar and the basic design work other hand, the Group is increasingly more exposed to for a floating LNG plant in Brazil. Meanwhile, work con- intense competition from Korean contractors who have tinued on the construction of a large-scale LNG plant shown remarkable growth in recent times. and multiple basic design/investment planning ser- Under these circumstances, the Chiyoda Group vices. Furthermore, our Qatar subsidiary commenced received orders for both domestic and overseas the work under a long-term EPCm service contract for EPC contracts, including a contract to construct an LNG/gas processing plants, awarded during the previ- LNG plant in Papua New Guinea and multiple basic ous fiscal year. With these long-term service contracts, design works. At the same time, the Group diligently the Chiyoda Group plans to actively promote the plant continued with the execution of its existing projects life-cycle engineering (PLE) business which the Chiyoda and completed three out of the six trains (each train Group has been pursuing for some time. designed to produce 7.8 million tonnes per annum) for On the domestic front, the Chiyoda Group was ultra large-scale LNG plants in Qatar, the first train of awarded new contracts including the basic design which the Group had already completed in the previous work for an LNG receiving terminal, while it contin- period. However, the projects’ profitability deteriorated ued to execute three EPC contracts for LNG receiving to a large extent due to some leveraging measures im- terminals in Niigata and Okayama prefectures and for plemented, which included increasing the number of other existing projects. construction workers in an effort to complete work on the sixth and seventh trains for the Qatargas LNG plant Petroleum, Petrochemicals and Gas Chemicals within the time stipulated in the contract. In response The Chiyoda Group’s concerted efforts to win oil to these business issues, it endeavored to recover its refinery investment projects in the Middle East and performance by practicing thorough risk management, Southeast Asia resulted in receiving orders for an EPC and by improving the profitability of existing contracts contract in Saudi Arabia for a heavy oil cracking unit as well as solidly executing the new contracts. Con- and a basic engineering contract for a desulfurization sequently, new contracts awarded to the Chiyoda plant in Singapore. Our aim is to strengthen our Group Group during this fiscal year increased by 105.0%, to companies and promote our global operations through ¥429,393 million, compared with the previous fiscal the execution of these projects. CHIYODA CORPORATION ANNUAL REPORT 2010 1 Domestically, in a market stagnated by shrinking Cash Flow Analysis investment plans and the trend of realignment and dis- use of facilities in the oil industry, we received engineer- Assets, Liabilities and Net Assets ing study contracts for connecting chemical complexes, • Assets competitiveness improvement and energy conservation. Total assets decreased by ¥29,642 million from the As for project execution, we completed the construction previous fiscal year. Although cash savings increased of a CCR (continuous catalytic regeneration) unit. by ¥4,255 million due to an improved operating cash flow, current assets decreased by ¥30,128 million General Chemicals, Industrial Machinery, due to a ¥3,058 million decrease in jointly controlled the Environment and Other Sectors assets of joint ventures through the progress of large- We achieved some tangible results in the general scale joint venture projects in Qatar. chemicals and industrial machinery sectors through • Liabilities our concerted efforts in facilities for photovoltaic and Although there was an increase of ¥15,372 million solar-powered generation and other renewable energies, in accounts payable for construction, the balance of lithium ion batteries, parts and components fabricated advances received on uncompleted projects decreased with advanced materials for eco-friendly vehicles, and by ¥43,493 million. This resulted in a decrease in non-ferrous metal smelting. total liabilities of ¥32,977 million compared with the In the pharmaceuticals sector, our efforts were directed towards highly active pharmaceuticals such as previous fiscal year. • Net assets antibodies and cancer drugs, which resulted in several Net assets were ¥149,253 million as the result of a orders being received. Major contracts included in the consolidated results for the period ¥1,029 million year-on-year increase in retained earn- ings due to booking net income. The equity ratio in- creased 4.6 points year on year, to 45.3%. • LNG plant Trains 6 & 7 for Ras Laffan Liquefied Natural Gas Co., Ltd. (3) in Qatar (*) • LNG plant Trains 6 & 7 for Qatar Liquefied Gas Co., Ltd. (3) and (4) in Qatar Overseas • Al Khaleej Gas Phase 2 project for ExxonMobil Middle East Gas Marketing Ltd. in Qatar (*) Cash Flows • Cash flow from operating activities Net cash from operating activities was ¥8,613 million despite a ¥21,398 million decrease in working capital • LNG plant Trains 4 & 5 for Qatar Liquefied Gas Co., (total in notes and accounts receivable–trade, costs Ltd. (2) in Qatar (*) • Pearl GTL project feed gas preparation works for Qatar Shell GTL Ltd. in Qatar Domestic • Construction of RFCC complex for Taiyo Oil Co., Ltd. • Expansion of Mizushima LNG receiving terminal for Mizushima LNG Co., Ltd. (*) Projects completed during the period on uncompleted construction contracts, notes and ac- counts payable–trade, and advances received on un- completed construction contracts). This was due to the jointly controlled assets of a joint venture decreasing by ¥3,058 million according to the progress of large-scale JV projects in Qatar, in addition to booking income before income taxes and minority interests of ¥4,714 million for the fiscal year. Jointly controlled assets of the joint venture are shown on the JV balance sheet as the assets controlled by Chiyoda. In real terms, it is equivalent to the portion 1 CHIYODA CORPORATION ANNUAL REPORT 2010 of the current deposit balance under the JV name that In Japan, the objective will be to look beyond is allocated to Chiyoda. existing fields of pursuit to maximize the Group’s overseas presence and develop business activities • Cash flow from investment activities that will lead to orders for various industrial facilities Net cash from investment activities was ¥2,722 million and for projects by domestic clients expanding their in the negative due to ¥1,864 million paid for software, operations abroad. etc. • Cash flow from financing activities Complete Existing Orders Net cash from financing activities was ¥2,079 million The profitability of some LNG projects under construc- in the negative due to ¥1,940 million paid in dividends tion in Qatar is being squeezed, due mainly to factors and other factors. such as a shortage of workers causing costs to exceed As the result of the factors described above, the initial estimates. The Group must therefore carefully account balance for the fiscal year for cash and cash manage the progress of big projects, not only in Qatar equivalents was ¥139,790 million, which was a year- but also in other areas, and reinforce its reputation for on-year increase of ¥4,254 million. reliability among clients by taking an even stronger Issues Requiring the Group’s Attention stance on safety and ensuring the steady execution of construction work. Cultivate New Business It is clear that clients with a vision to the future with Efforts will be directed into areas in the environment regard to growth and development are the key to the sector where the Company boasts a superior tech- Group’s success in securing big projects, irrespec- nological capability, and the Company will implement tive of the speed or degree of economic recovery in an internal business execution structure for non-EPC various regions. businesses to underpin new business development. The profit, targets and strengthening of our operat- ing base growth strategies laid out in the new medium- Strengthen Group Operations term management plan—Engineering Excellence, Management plans to attract essential personnel to Value Creation 2012—were formulated with the chal- execute projects and run operations at local subsid- lenges of the current business environment in mind. iaries throughout the Group network. This will create To achieve stated targets and successfully execute a business and execution structure that is fine-tuned the strategic blueprint, the Group will emphasize the to each region. The Group will utilize its international following issues during fiscal 2010, the second year of specialized capabilities to underpin its cost-competi- Engineering Excellence, Value Creation 2012. tiveness, along with measures to reinforce and extend the function of its overseas design subsidiaries. Secure Orders for New Projects Group companies will focus their efforts on winning new Business Risks orders not only in the areas of LNG- and gas-related projects but in other industry sectors such as oil and The primary issues that could affect investor deci- petrochemicals. Toward this end, measures will be drawn sions regarding investment risk, such as material up to reinforce R&D capabilities and cost-competitiveness, issues related to the Chiyoda Group’s financial position, and to retain and train essential personnel. performance and cash flow, and the Chiyoda Group’s CHIYODA CORPORATION ANNUAL REPORT 2010 1 response to such issues, include but are not limited Terrorism, Conflicts and Other Force to, the issues outlined below. The Chiyoda Group rec- Majeure Events ognizes the potential occurrence of these risks and Force majeure events such as terrorism, conflicts, works to avoid them to the maximum extent possible. and natural disasters, etc., may cause direct losses, The Chiyoda Group also moves to respond as quickly delays in procuring or delivering materials and equip- as possible to minimize the impact of issues if and ment, threats to the safety of workers, cessation of when they occur. construction work or other problems at construction Chiyoda Group management acknowledges that sites in Japan and overseas. the issues outlined below may present risks in the Whilst a top priority is placed on the avoidance future and has made them the focus of risk manage- of human injury, the Chiyoda Group has structured ment. a threat management system that includes coopera- tion with customers and other related parties to sup- Changes in Exchange Rates port rapid initial response should such events occur. In overseas construction projects, payments made to In addition, the Chiyoda Group will take other steps Chiyoda for construction are often in currencies differ- to avoid or minimize these risks, including negotiat- ent to those made by Chiyoda to subcontractors and/ ing contractual provisions that rationally allocate ad- or vendors for equipment and materials. Foreign cur- ditional costs to customers. rency exchange rates may therefore affect the financial results of the projects. The Chiyoda Group works to Plant Accidents avoid and minimize such foreign currency fluctuation The possibility exists that a serious incident such as an risks by using forward foreign exchange contracts and explosion or fire may occur at plants that the Chiyoda matching planned outlays in multiple currencies with Group is constructing or has completed. The Chiyoda construction payments and receivables. Group could be adjudged responsible for such acci- dents, including being held liable for damages, which Rapid Changes in Economic Trends could impact the Chiyoda Group’s performance. Cancellation, delays or revisions of the investment The Chiyoda Group works to avoid or minimize plans of customers, or other factors resulting from this risk in ways such as taking all possible measures changes in worldwide economic trends, could impact to preclude the occurrence of such incidents, includ- the Chiyoda Group’s performance. In addition, con- ing quality control and safety management. Other struction execution plans and budgets and collection countermeasures include maintaining the appropriate of receivables may be affected by worsening business insurance coverage and negotiating contracts that conditions of business partners involved in plant con- rationally allocate customer responsibility for damages. struction, including subcontractors and suppliers of equipment and materials. The Group will work to avoid or minimize risk by scrupulously analyzing the credit standing of business partners, while monitoring economic trends to confirm whether or not to transact business or under what con- ditions business should be transacted. 1 CHIYODA CORPORATION ANNUAL REPORT 2010 Chiyoda Corporation and Consolidated Subsidiaries Consolidated Financial Statements for the Years Ended March 31, 2010 and 2009, and Independent Auditors' Report CHIYODA CORPORATION ANNUAL REPORT 2010 1 Chiyoda Corporation and Consolidated Subsidiaries INDEPENDENT AUDITORS' REPORT To the Board of Directors of Chiyoda Corporation: We have audited the accompanying consolidated balance sheets of Chiyoda Corporation (the "Company") and consolidated subsidiaries as of March 31, 2010 and 2009, and the related consolidated statements of income, changes in equity, and cash flows for the years then ended, all expressed in Japanese yen. These consolidated financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial state- ments are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement pre- sentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Chiyoda Corporation and consolidated subsidiaries as of March 31, 2010 and 2009, and the consolidated results of their operations and their cash flows for the years then ended in confor- mity with accounting principles generally accepted in Japan. Our audits also comprehended the translation of Japanese yen amounts into U.S. dollar amounts and, in our opinion, such translation has been made in conformity with the basis stated in Note 1. Such U.S. dollar amounts are presented solely for the convenience of readers outside Japan. June 11, 2010 1 CHIYODA CORPORATION ANNUAL REPORT 2010 Chiyoda Corporation and Consolidated Subsidiaries Consolidated Balance Sheets March 31, 2010 and 2009 Chiyoda Corporation and Consolidated Subsidiaries Consolidated Balance Sheets March 31, 2010 and 2009 ASSETS CURRENT ASSETS: Cash and cash equivalents (Note 14) Short-term investments (Note 14) Notes and accounts receivable—trade (Notes 3 and 14) Allowance for doubtful accounts Costs and estimated earnings on long-term construction contracts (Notes 4 and 14) Costs of construction contracts in process Accounts receivable—other (Note 3) Jointly controlled assets of joint venture (Note 14) Deferred tax assets (Note 11) Prepaid expenses and other Millions of Yen 2010 2009 Thousands of U.S. Dollars (Note 1) 2010 ¥ 139,790 53 39,864 ¥ 135,536 52 33,090 (2 ) (3 ) $ 1,503,125 577 428,647 (29 ) 11,454 7,283 4,958 69,917 15,523 1,876 17,560 16,920 5,177 100,426 9,872 2,215 123,166 78,318 53,321 751,805 166,914 20,172 Total current assets 290,719 320,848 3,126,018 PROPERTY, PLANT AND EQUIPMENT (Note 7): Land Buildings and structures Machinery and equipment Tools, furniture and fixtures Construction in progress Accumulated depreciation Total 11,938 15,193 592 5,157 48 32,931 11,953 14,752 870 5,010 1 32,588 (11,480 ) (10,586 ) 128,376 163,370 6,371 55,452 525 354,097 (123,447 ) Net property, plant and equipment 21,450 22,001 230,649 INVESTMENTS AND OTHER ASSETS: Investment securities (Notes 5 and 14) Investments in and advances to unconsolidated subsidiaries and associated companies (Note 6) Software Deferred tax assets (Note 11) Other assets Allowance for doubtful accounts 5,153 3,765 2,714 3,195 1,745 3,528 (333 ) 3,203 3,546 1,348 3,435 (333 ) 55,417 29,192 34,360 18,765 37,935 (3,583 ) Total investments and other assets 16,004 14,967 172,087 Millions of Yen 2010 2009 Thousands of U.S. Dollars (Note 1) 2010 LIABILITIES AND EQUITY CURRENT LIABILITIES: Current portion of long-term debt (Notes 7, 13 and 14) Notes and accounts payable—trade (Notes 3 and 14) Advance receipts on construction contracts Income taxes payable (Note 14) Deposits received Allowance for warranty costs for completed works Allowance for losses on construction contracts Accrued expenses and other (Note 3) ¥ 17 ¥ 28 $ 89,523 48,168 4,675 4,497 4,486 4,427 10,162 77,020 91,661 5,457 4,468 3,801 4,302 12,478 192 962,621 517,945 50,270 48,362 48,243 47,605 109,279 Total current liabilities 165,960 199,218 1,784,519 NON-CURRENT LIABILITIES: Long-term debt (Notes 7, 13 and 14) Liability for retirement benefits (Note 8) Provision for treatment of PCB waste Other liabilities 10,022 2,305 123 510 10,030 2,288 361 107,763 24,793 1,322 5,485 Total non-current liabilities 12,960 12,681 139,364 COMMITMENTS AND CONTINGENT LIABILITIES (Notes 3, 13, 15 and 16) EQUITY (Notes 9, 10 and 18): Common stock—authorized, 570,000 thousand shares; issued, 260,324 thousand shares in 2010 and 260,292 thousand shares in 2009 Preferred stock—authorized, 80,000 thousand shares Capital surplus Retained earnings Unrealized gain (loss) on available-for-sale securities Deferred loss on derivatives under hedge accounting Foreign currency translation adjustments Treasury stock—at cost, 1,117 thousand shares in 2010 and 963 thousand shares in 2009 Minority interests Total 43,396 43,392 466,628 37,112 70,759 102 (156 ) (1,315 ) 37,108 69,730 (775 ) (1,368 ) (1,469 ) 399,060 760,860 1,106 (1,685 ) (14,148 ) (1,215 ) (1,105 ) (13,070 ) 148,683 145,513 1,598,750 569 404 6,120 TOTAL ¥ 328,174 ¥ 357,816 $ 3,528,755 TOTAL ¥ 328,174 ¥ 357,816 $ 3,528,755 Total equity 149,253 145,917 1,604,871 See notes to consolidated financial statements. - 2 - CHIYODA CORPORATION ANNUAL REPORT 2010 1 Chiyoda Corporation and Consolidated Subsidiaries Consolidated Balance Sheets March 31, 2010 and 2009 Chiyoda Corporation and Consolidated Subsidiaries Consolidated Balance Sheets March 31, 2010 and 2009 ASSETS CURRENT ASSETS: Cash and cash equivalents (Note 14) Short-term investments (Note 14) Notes and accounts receivable—trade (Notes 3 and 14) Allowance for doubtful accounts Costs and estimated earnings on long-term construction contracts (Notes 4 and 14) Costs of construction contracts in process Accounts receivable—other (Note 3) Jointly controlled assets of joint venture (Note 14) Deferred tax assets (Note 11) Prepaid expenses and other PROPERTY, PLANT AND EQUIPMENT (Note 7): Land Buildings and structures Machinery and equipment Tools, furniture and fixtures Construction in progress Accumulated depreciation Total INVESTMENTS AND OTHER ASSETS: Investment securities (Notes 5 and 14) Investments in and advances to unconsolidated subsidiaries and associated companies (Note 6) Software Deferred tax assets (Note 11) Other assets Allowance for doubtful accounts See notes to consolidated financial statements. Millions of Yen 2010 2009 Thousands of U.S. Dollars (Note 1) 2010 ¥ 139,790 ¥ 135,536 $ 1,503,125 53 39,864 (2 ) 11,454 7,283 4,958 69,917 15,523 1,876 52 33,090 (3 ) 17,560 16,920 5,177 100,426 9,872 2,215 11,938 15,193 592 5,157 48 32,931 11,953 14,752 870 5,010 1 32,588 5,153 3,765 2,714 3,195 1,745 3,528 (333 ) 3,203 3,546 1,348 3,435 (333 ) 577 428,647 (29 ) 123,166 78,318 53,321 751,805 166,914 20,172 128,376 163,370 6,371 55,452 525 354,097 55,417 29,192 34,360 18,765 37,935 (3,583 ) LIABILITIES AND EQUITY CURRENT LIABILITIES: Current portion of long-term debt (Notes 7, 13 and 14) Notes and accounts payable—trade (Notes 3 and 14) Advance receipts on construction contracts Income taxes payable (Note 14) Deposits received Allowance for warranty costs for completed works Allowance for losses on construction contracts Accrued expenses and other (Note 3) Millions of Yen 2010 2009 Thousands of U.S. Dollars (Note 1) 2010 ¥ 17 89,523 48,168 4,675 4,497 4,486 4,427 10,162 ¥ 28 77,020 91,661 5,457 4,468 3,801 4,302 12,478 $ 192 962,621 517,945 50,270 48,362 48,243 47,605 109,279 Total current liabilities 165,960 199,218 1,784,519 NON-CURRENT LIABILITIES: Long-term debt (Notes 7, 13 and 14) Liability for retirement benefits (Note 8) Provision for treatment of PCB waste Other liabilities 10,022 2,305 123 510 10,030 2,288 361 107,763 24,793 1,322 5,485 Total non-current liabilities 12,960 12,681 139,364 COMMITMENTS AND CONTINGENT LIABILITIES (Notes 3, 13, 15 and 16) EQUITY (Notes 9, 10 and 18): Common stock—authorized, 570,000 thousand shares; issued, 260,324 thousand shares in 2010 and 260,292 thousand shares in 2009 Preferred stock—authorized, 80,000 thousand shares Capital surplus Retained earnings Unrealized gain (loss) on available-for-sale securities Deferred loss on derivatives under hedge accounting Foreign currency translation adjustments Treasury stock—at cost, 1,117 thousand shares in 2010 and 963 thousand shares in 2009 Minority interests Total 43,396 43,392 466,628 37,112 70,759 102 (156 ) (1,315 ) 37,108 69,730 (775 ) (1,368 ) (1,469 ) 399,060 760,860 1,106 (1,685 ) (14,148 ) (1,215 ) (1,105 ) 148,683 569 145,513 404 (13,070 ) 1,598,750 6,120 Total current assets 290,719 320,848 3,126,018 Net property, plant and equipment 21,450 22,001 230,649 (11,480 ) (10,586 ) (123,447 ) Total investments and other assets 16,004 14,967 172,087 TOTAL ¥ 328,174 ¥ 357,816 $ 3,528,755 TOTAL ¥ 328,174 ¥ 357,816 $ 3,528,755 Total equity 149,253 145,917 1,604,871 - 2 - 0 CHIYODA CORPORATION ANNUAL REPORT 2010 Chiyoda Corporation and Consolidated Subsidiaries Consolidated Balance Sheets March 31, 2010 and 2009 ASSETS CURRENT ASSETS: Cash and cash equivalents (Note 14) Short-term investments (Note 14) Notes and accounts receivable—trade (Notes 3 and 14) Allowance for doubtful accounts Costs and estimated earnings on long-term construction contracts (Notes 4 and 14) Costs of construction contracts in process Accounts receivable—other (Note 3) Jointly controlled assets of joint venture (Note 14) Deferred tax assets (Note 11) Prepaid expenses and other PROPERTY, PLANT AND EQUIPMENT (Note 7): Land Buildings and structures Machinery and equipment Tools, furniture and fixtures Construction in progress Accumulated depreciation Total INVESTMENTS AND OTHER ASSETS: Investment securities (Notes 5 and 14) Investments in and advances to unconsolidated subsidiaries and associated companies (Note 6) Software Deferred tax assets (Note 11) Other assets Allowance for doubtful accounts See notes to consolidated financial statements. Total current assets 290,719 320,848 3,126,018 Net property, plant and equipment 21,450 22,001 230,649 (11,480 ) (10,586 ) (123,447 ) Millions of Yen 2010 2009 Thousands of U.S. Dollars (Note 1) 2010 ¥ 139,790 ¥ 135,536 $ 1,503,125 LIABILITIES AND EQUITY CURRENT LIABILITIES: 53 39,864 (2 ) 11,454 7,283 4,958 69,917 15,523 1,876 52 33,090 (3 ) 17,560 16,920 5,177 100,426 9,872 2,215 11,938 15,193 592 5,157 48 32,931 11,953 14,752 870 5,010 1 32,588 5,153 3,765 2,714 3,195 1,745 3,528 (333 ) 3,203 3,546 1,348 3,435 (333 ) 577 428,647 (29 ) 123,166 78,318 53,321 751,805 166,914 20,172 128,376 163,370 6,371 55,452 525 354,097 55,417 29,192 34,360 18,765 37,935 (3,583 ) Current portion of long-term debt (Notes 7, 13 and 14) Notes and accounts payable—trade (Notes 3 and 14) Advance receipts on construction contracts Income taxes payable (Note 14) Deposits received Allowance for warranty costs for completed works Allowance for losses on construction contracts Accrued expenses and other (Note 3) ¥ 17 ¥ 28 $ 89,523 48,168 4,675 4,497 4,486 4,427 10,162 77,020 91,661 5,457 4,468 3,801 4,302 12,478 192 962,621 517,945 50,270 48,362 48,243 47,605 109,279 Total current liabilities 165,960 199,218 1,784,519 NON-CURRENT LIABILITIES: Long-term debt (Notes 7, 13 and 14) Liability for retirement benefits (Note 8) Provision for treatment of PCB waste Other liabilities 10,022 2,305 123 510 10,030 2,288 361 107,763 24,793 1,322 5,485 Total non-current liabilities 12,960 12,681 139,364 COMMITMENTS AND CONTINGENT LIABILITIES (Notes 3, 13, 15 and 16) EQUITY (Notes 9, 10 and 18): Common stock—authorized, 570,000 thousand shares; issued, 260,324 thousand shares in 2010 and 260,292 thousand shares in 2009 Preferred stock—authorized, 80,000 thousand shares Capital surplus Retained earnings Unrealized gain (loss) on available-for-sale securities Deferred loss on derivatives under hedge accounting Foreign currency translation adjustments Treasury stock—at cost, 1,117 thousand shares in 2010 and 963 thousand shares in 2009 Minority interests Total 43,396 43,392 466,628 37,112 70,759 102 (156 ) (1,315 ) 37,108 69,730 (775 ) (1,368 ) (1,469 ) 399,060 760,860 1,106 (1,685 ) (14,148 ) (1,215 ) (1,105 ) (13,070 ) 148,683 145,513 1,598,750 569 404 6,120 Total investments and other assets 16,004 14,967 172,087 TOTAL ¥ 328,174 ¥ 357,816 $ 3,528,755 TOTAL ¥ 328,174 ¥ 357,816 $ 3,528,755 Chiyoda Corporation and Consolidated Subsidiaries Consolidated Statements of Income Years Ended March 31, 2010 and 2009 Chiyoda Corporation and Consolidated Subsidiaries Consolidated Statements of Income Years Ended March 31, 2010 and 2009 Millions of Yen 2010 2009 Thousands of U.S. Dollars (Note 1) 2010 Millions of Yen 2010 2009 Thousands of U.S. Dollars (Note 1) 2010 REVENUE (Notes 3 and 4) ¥ 312,985 ¥ 446,438 $ 3,365,440 COST OF REVENUE (Notes 3 and 4) 298,766 427,461 3,212,545 Gross profit 14,219 18,977 152,895 SELLING, GENERAL AND ADMINISTRATIVE EXPENSES (Notes 3 and 12) 12,517 11,749 134,593 Operating income 1,702 7,227 18,301 OTHER INCOME (EXPENSES): Interest and dividend income Interest expense Equity in earnings of associated companies Foreign exchange gain (loss) Reversal of allowance for doubtful accounts Loss on valuation of investment securities Provision for treatment of PCB waste Other—net 2,017 (249 ) 144 1,214 (123 ) 9 5,101 (340 ) 137 (435 ) 127 (1,859 ) (306 ) 21,695 (2,687 ) 1,550 13,055 (1,322 ) 102 Other income—net 3,012 2,423 32,393 INCOME BEFORE INCOME TAXES AND MINORITY INTERESTS 4,714 9,651 50,695 INCOME TAXES (Note 11): Current Deferred 8,532 (6,806 ) 7,120 (3,996 ) 91,751 (73,188 ) Total income taxes 1,726 3,123 18,562 MINORITY INTERESTS IN NET INCOME 34 29 370 NET INCOME Chiyoda Corporation and Consolidated Subsidiaries ¥ 2,953 ¥ 6,498 $ 31,762 Total equity 149,253 145,917 1,604,871 Consolidated Statements of Income Years Ended March 31, 2010 and 2009 PER SHARE OF COMMON STOCK (Notes 2.t and 17): Basic net income Diluted net income Cash dividends applicable to the year See notes to consolidated financial statements. Yen 2010 2009 U.S. Dollars 2010 ¥ 11.39 11.39 3.50 ¥ 25.58 25.58 7.50 $ 0.12 0.12 0.04 - 2 - - 3 - (Continued) CHIYODA CORPORATION ANNUAL REPORT 2010 1 - 4 - (Concluded) Chiyoda Corporation and Consolidated Subsidiaries Consolidated Statements of Changes in Equity Years Ended March 31, 2010 and 2009 Chiyoda Corporation and Consolidated Subsidiaries Chiyoda Corporation and Consolidated Subsidiaries Chiyoda Corporation and Consolidated Subsidiaries Chiyoda Corporation and Consolidated Subsidiaries Chiyoda Corporation and Consolidated Subsidiaries Chiyoda Corporation and Consolidated Subsidiaries Chiyoda Corporation and Consolidated Subsidiaries Chiyoda Corporation and Consolidated Subsidiaries Consolidated Statements of Changes in Equity Years Ended March 31, 2010 and 2009 Consolidated Statements of Changes in Equity Consolidated Statements of Changes in Equity Years Ended March 31, 2010 and 2009 Years Ended March 31, 2010 and 2009 Consolidated Statements of Changes in Equity Consolidated Statements of Changes in Equity Consolidated Statements of Changes in Equity Consolidated Statements of Changes in Equity Consolidated Statements of Changes in Equity Years Ended March 31, 2010 and 2009 Years Ended March 31, 2010 and 2009 Years Ended March 31, 2010 and 2009 Years Ended March 31, 2010 and 2009 Years Ended March 31, 2010 and 2009 Thousands Thousands Thousands Thousands Thousands Thousands Thousands Thousands Unrealized Unrealized Unrealized Gain (Loss) Gain (Loss) Gain (Loss) Unrealized Unrealized Unrealized Unrealized Unrealized Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Deferred Deferred Deferred Deferred Deferred Deferred Deferred Deferred Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Available- Outstanding Number of Shares of Common Stock Outstanding Outstanding Number of Number of Shares of Shares of Common Common Stock Stock Outstanding Outstanding Outstanding Outstanding Outstanding Number of Number of Number of Number of Number of Shares of Shares of Shares of Shares of Shares of Common Common Common Common Common Stock Stock Stock Stock Stock Common Stock 6,498 6,498 6,498 6,498 6,498 6,498 6,498 6,498 67,080 67,080 67,080 67,080 67,080 67,080 67,080 67,080 30,454 30,454 30,454 30,454 30,454 30,454 30,454 30,454 30,387 30,387 30,387 30,387 30,387 30,387 30,387 30,387 Common Common Stock Stock Common Common Stock Stock Common Common Common Stock Stock Stock Capital Surplus Capital Capital Surplus Surplus Capital Capital Surplus Surplus Capital Capital Capital Surplus Surplus Surplus Retained Earnings Retained Retained Earnings Earnings Retained Retained Earnings Earnings Retained Retained Retained Earnings Earnings Earnings Securities BALANCE, APRIL 1, 2008 BALANCE, APRIL 1, 2008 BALANCE, APRIL 1, 2008 BALANCE, APRIL 1, 2008 BALANCE, APRIL 1, 2008 BALANCE, APRIL 1, 2008 BALANCE, APRIL 1, 2008 BALANCE, APRIL 1, 2008 192,279 192,279 192,279 192,279 192,279 192,279 192,279 192,279 ¥ 12,935 ¥ 12,935 ¥ 12,935 ¥ 12,935 ¥ 12,935 ¥ 12,935 ¥ 12,935 ¥ 12,935 ¥ 6,718 ¥ 6,718 ¥ 6,718 ¥ 6,718 ¥ 6,718 ¥ 6,718 ¥ 6,718 ¥ 6,718 ¥ 65,155 ¥ 65,155 ¥ 65,155 ¥ 65,155 ¥ 65,155 ¥ 65,155 ¥ 65,155 ¥ 65,155 30 30 30 (60 ) (60 ) (60 ) 30 30 30 30 30 3 3 3 3 3 3 3 3 3 3 3 (60 ) (60 ) (60 ) (60 ) (60 ) 3 3 3 3 3 (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) Net income Net income Net income Issuance of common stock to a third party (Note 9) Issuance of common stock to a third party (Note 9) Issuance of common stock to a third party (Note 9) Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) Cash dividends, ¥10.00 per share Cash dividends, ¥10.00 per share Cash dividends, ¥10.00 per share Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Net change in the year Net change in the year Net change in the year Net income Net income Net income Net income Net income Issuance of common stock to a third party (Note 9) Issuance of common stock to a third party (Note 9) Issuance of common stock to a third party (Note 9) Issuance of common stock to a third party (Note 9) Issuance of common stock to a third party (Note 9) Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) Cash dividends, ¥10.00 per share Cash dividends, ¥10.00 per share Cash dividends, ¥10.00 per share Cash dividends, ¥10.00 per share Cash dividends, ¥10.00 per share Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year on on on on on on on on Loss on Loss on Loss on Loss on Loss on Loss on Loss on Loss on Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Available- Available- Available- Available- Available- Available- Available- Derivatives Derivatives Derivatives Derivatives Derivatives Derivatives Derivatives Derivatives Currency Currency Currency Currency Currency Currency Currency Currency for-Sale for-Sale for-Sale for-Sale for-Sale for-Sale for-Sale for-Sale under Hedge under Hedge under Hedge under Hedge under Hedge under Hedge under Hedge under Hedge Translation Translation Translation Translation Translation Translation Translation Translation Treasury Treasury Treasury Treasury Treasury Treasury Treasury Treasury Securities Securities Securities Securities Securities Securities Securities Accounting Accounting Accounting Accounting Accounting Accounting Accounting Accounting Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments Stock Stock Stock Stock Stock Stock Stock Stock Total Total Total Total Total Total Total Total Interests Interests Interests Interests Interests Interests Interests Interests Equity Equity Equity Equity Equity Equity Equity Equity Minority Minority Minority Minority Minority Minority Minority Minority Total Total Total Total Total Total Total Total ¥ (847 ) ¥ (847 ) ¥ (847 ) ¥ (847 ) ¥ (847 ) ¥ (847 ) ¥ (847 ) ¥ (847 ) ¥ (1,668) ¥ (1,668) ¥ (1,668) ¥ (1,668) ¥ (1,668) ¥ (1,668) ¥ (1,668) ¥ (1,668) ¥ ¥ ¥ ¥ ¥ (6 ) ¥ (6 ) (6 ) (6 ) (6 ) ¥ ¥ (6 ) (6 ) ¥ (1,059) ¥ (1,059) ¥ (1,059) ¥ (1,059) ¥ (1,059) ¥ (1,059) ¥ (1,059) ¥ (1,059) ¥ 81,228 ¥ 81,228 ¥ 81,228 ¥ 81,228 ¥ 81,228 ¥ 81,228 ¥ 81,228 ¥ 81,228 (6 ) ¥ 410 ¥ 410 ¥ 410 ¥ 410 ¥ 410 ¥ 410 ¥ 410 ¥ 410 ¥ 81,638 ¥ 81,638 ¥ 81,638 ¥ 81,638 ¥ 81,638 ¥ 81,638 ¥ 81,638 ¥ 81,638 6,498 6,498 6,498 6,498 6,498 6,498 6,498 6,498 60,841 60,841 60,841 60,841 60,841 60,841 60,841 60,841 6 6 6 6 6 6 6 6 (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) 6,498 6,498 6,498 6,498 6,498 6,498 6,498 60,841 60,841 60,841 60,841 60,841 60,841 60,841 6,498 60,841 6 6 6 6 6 6 6 6 (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) 71 71 71 71 71 71 71 71 299 299 299 299 299 299 299 299 (1,462 ) (1,462 ) (1,462 ) (1,462 ) (1,462 ) (1,462 ) (1,462 ) (1,462 ) (1,091 ) (1,091 ) (1,091 ) (1,091 ) (1,091 ) (1,091 ) (1,091 ) (1,091 ) (6 ) (6 ) (6 ) (6 ) (6 ) (6 ) (6 ) (6 ) (1,097 ) (1,097 ) (1,097 ) (1,097 ) (1,097 ) (1,097 ) (1,097 ) (1,097 ) (775 ) (775 ) (775 ) (775 ) (775 ) (775 ) (775 ) (775 ) (1,368 ) (1,368 ) (1,368 ) (1,368 ) (1,368 ) (1,368 ) (1,368 ) (1,368 ) (1,469 ) (1,469 ) (1,469 ) (1,469 ) (1,469 ) (1,469 ) (1,469 ) (1,469 ) (1,105 ) (1,105 ) (1,105 ) (1,105 ) (1,105 ) (1,105 ) (1,105 ) (1,105 ) 145,513 145,513 145,513 145,513 145,513 145,513 145,513 145,513 404 404 404 404 404 404 404 404 145,917 145,917 145,917 145,917 145,917 145,917 145,917 145,917 20 20 20 878 878 878 878 878 878 878 878 1,211 1,211 1,211 1,211 1,211 1,211 1,211 1,211 153 153 153 153 153 153 153 153 2,243 2,243 2,243 2,243 2,243 2,243 2,243 2,243 164 164 164 164 164 164 164 164 ¥ 102 ¥ 102 ¥ 102 ¥ 102 ¥ 102 ¥ 102 ¥ 102 ¥ 102 ¥ (156 ) ¥ (156 ) ¥ (156 ) ¥ (156 ) ¥ (156 ) ¥ (156 ) ¥ (156 ) ¥ (156 ) ¥ (1,315) ¥ (1,315) ¥ (1,315) ¥ (1,315) ¥ (1,315) ¥ (1,315) ¥ (1,315) ¥ (1,315) ¥ (1,215) ¥ (1,215) ¥ (1,215) ¥ (1,215) ¥ (1,215) ¥ (1,215) ¥ (1,215) ¥ (1,215) ¥ 148,683 ¥ 148,683 ¥ 148,683 ¥ 148,683 ¥ 148,683 ¥ 148,683 ¥ 148,683 ¥ 148,683 ¥ 569 ¥ 569 ¥ 569 ¥ 569 ¥ 569 ¥ 569 ¥ 569 ¥ 569 ¥ 149,253 ¥ 149,253 ¥ 149,253 ¥ 149,253 ¥ 149,253 ¥ 149,253 ¥ 149,253 ¥ 149,253 2,953 2,953 2,953 2,953 2,953 2,953 2,953 2,953 2,953 2,953 2,953 2,953 2,953 2,953 2,953 2,953 7 7 7 7 7 7 7 7 (1,944 ) (1,944 ) (1,944 ) (1,944 ) (1,944 ) (1,944 ) (1,944 ) (1,944 ) 20 20 20 20 20 20 20 20 (109 ) (109 ) (109 ) (109 ) (109 ) (109 ) (109 ) (109 ) (109 ) (109 ) (109 ) (109 ) (109 ) (109 ) (109 ) (109 ) (1,944 ) (1,944 ) (1,944 ) (1,944 ) (1,944 ) (1,944 ) (1,944 ) (1,944 ) 7 7 7 7 7 7 7 20 20 20 20 20 20 20 7 20 (109 ) (109 ) (109 ) (109 ) (109 ) (109 ) (109 ) 2,408 2,408 2,408 2,408 2,408 2,408 2,408 (109 ) 2,408 on on on on on on on on Loss on Loss on Loss on Loss on Loss on Loss on Loss on Loss on Foreign Foreign Foreign Foreign Foreign Foreign Foreign Foreign Available- Available- Available- Available- Available- Derivatives Derivatives Derivatives Derivatives Derivatives Derivatives Derivatives Derivatives Currency Currency Currency Currency Currency Currency Currency Currency for-Sale for-Sale for-Sale for-Sale for-Sale for-Sale for-Sale under Hedge under Hedge under Hedge under Hedge under Hedge under Hedge under Hedge under Hedge Translation Translation Translation Translation Translation Translation Translation Translation Treasury Treasury Treasury Treasury Treasury Treasury Treasury Treasury Securities Securities Securities Securities Securities Accounting Accounting Accounting Accounting Accounting Accounting Accounting Accounting Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments Adjustments Stock Stock Stock Stock Stock Stock Stock Stock Total Total Total Total Total Total Total Total Minority Minority Minority Minority Minority Minority Minority Minority Total Total Total Total Total Total Total Interests Interests Interests Interests Interests Interests Interests Interests Equity Equity Equity Equity Equity Equity Equity Total Equity $ (8,338) $ (8,338) $ (8,338) $ (8,338) $ (8,338) $ (8,338) $ (8,338) $ (14,712 ) $ (14,712 ) $ (14,712 ) $ (14,712 ) $ (14,712 ) $ (14,712 ) $ (14,712 ) $ (14,712 ) $ (15,799 ) $ (15,799 ) $ (15,799 ) $ (15,799 ) $ (15,799 ) $ (15,799 ) $ (15,799 ) $ (15,799 ) $ (11,892 ) $ (11,892 ) $ (11,892 ) $ (11,892 ) $ (11,892 ) $ (11,892 ) $ (11,892 ) $ (11,892 ) $ 1,564,660 $ 1,564,660 $ 1,564,660 $ 1,564,660 $ 1,564,660 $ 1,564,660 $ 1,564,660 $ 1,564,660 $ 4,346 $ 4,346 $ 4,346 $ 4,346 $ 4,346 $ 4,346 $ 4,346 $ 4,346 $ 1,569,008 $ 1,569,008 $ 1,569,008 $ 1,569,008 $ 1,569,008 $ 1,569,008 $ 1,569,008 $ 1,569,008 31,762 31,762 31,762 31,762 31,762 31,762 31,762 31,762 31,762 31,762 31,762 31,762 31,762 31,762 31,762 31,762 79 79 79 79 79 79 79 79 (20,913 ) (20,913 ) (20,913 ) (20,913 ) (20,913 ) (20,913 ) (20,913 ) (20,913 ) 217 217 217 217 217 217 217 217 (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) 79 79 79 79 79 79 79 79 (20,913 ) (20,913 ) (20,913 ) (20,913 ) (20,913 ) (20,913 ) (20,913 ) (20,913 ) 217 217 217 217 217 217 217 217 (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) 25,896 25,896 25,896 25,896 25,896 25,896 25,896 (1,178 ) 25,896 $ 1,106 $ 1,106 $ 1,106 $ 1,106 $ 1,106 $ 1,106 $ 1,106 $ (1,685 ) $ (1,685 ) $ (1,685 ) $ (1,685 ) $ (1,685 ) $ (1,685 ) $ (1,685 ) $ (1,685 ) $ (14,148 ) $ (14,148 ) $ (14,148 ) $ (14,148 ) $ (14,148 ) $ (14,148 ) $ (14,148 ) $ (14,148 ) $ (13,070 ) $ (13,070 ) $ (13,070 ) $ (13,070 ) $ (13,070 ) $ (13,070 ) $ (13,070 ) $ (13,070 ) $ 1,598,750 $ 1,598,750 $ 1,598,750 $ 1,598,750 $ 1,598,750 $ 1,598,750 $ 1,598,750 $ 1,598,750 $ 6,120 $ 6,120 $ 6,120 $ 6,120 $ 6,120 $ 6,120 $ 6,120 $ 6,120 $ 1,604,871 $ 1,604,871 $ 1,604,871 $ 1,604,871 $ 1,604,871 $ 1,604,871 $ 1,604,871 $ 1,604,871 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 259,328 259,328 259,328 259,328 259,328 259,328 259,328 259,328 43,392 43,392 43,392 43,392 43,392 43,392 43,392 43,392 37,108 37,108 37,108 37,108 37,108 37,108 37,108 37,108 69,730 69,730 69,730 69,730 69,730 69,730 69,730 69,730 Net income Net income Net income Net income Net income Net income Net income Net income Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) Cash dividends, ¥7.50 per share Cash dividends, ¥7.50 per share Cash dividends, ¥7.50 per share Cash dividends, ¥7.50 per share Cash dividends, ¥7.50 per share Cash dividends, ¥7.50 per share Cash dividends, ¥7.50 per share Cash dividends, ¥7.50 per share Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year 32 32 32 (153 ) (153 ) (153 ) 32 32 32 32 32 3 3 3 3 3 3 3 3 3 3 3 (153 ) (153 ) (153 ) (153 ) (153 ) 2,953 2,953 2,953 2,953 2,953 2,953 2,953 2,953 3 3 3 3 3 (1,944 ) (1,944 ) (1,944 ) 20 (1,944 ) (1,944 ) 20 20 (1,944 ) (1,944 ) (1,944 ) 20 20 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 259,207 259,207 259,207 259,207 259,207 259,207 259,207 259,207 ¥ 43,396 ¥ 43,396 ¥ 43,396 ¥ 43,396 ¥ 43,396 ¥ 43,396 ¥ 43,396 ¥ 43,396 ¥ 37,112 ¥ 37,112 ¥ 37,112 ¥ 37,112 ¥ 37,112 ¥ 37,112 ¥ 37,112 ¥ 37,112 ¥ 70,759 ¥ 70,759 ¥ 70,759 ¥ 70,759 ¥ 70,759 ¥ 70,759 ¥ 70,759 ¥ 70,759 Thousands of U.S. Dollars (Note 1) Thousands of U.S. Dollars (Note 1) Thousands of U.S. Dollars (Note 1) Thousands of U.S. Dollars (Note 1) Thousands of U.S. Dollars (Note 1) Thousands of U.S. Dollars (Note 1) Thousands of U.S. Dollars (Note 1) Thousands of U.S. Dollars (Note 1) Unrealized Gain (Loss) Unrealized Unrealized Gain (Loss) Gain (Loss) Unrealized Unrealized Unrealized Unrealized Unrealized Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Deferred Deferred Deferred Deferred Deferred Deferred Deferred Deferred Common Stock Common Common Stock Stock Common Common Stock Stock Common Common Common Stock Stock Stock Capital Surplus Capital Capital Surplus Surplus Capital Capital Surplus Surplus Capital Capital Capital Surplus Surplus Surplus Retained Earnings Retained Retained Earnings Earnings Retained Retained Earnings Earnings Retained Retained Retained Earnings Earnings Earnings Available- Available- Available- for-Sale Securities Securities Securities $ 466,588 $ 466,588 $ 466,588 $ 466,588 $ 466,588 $ 466,588 $ 466,588 $ 466,588 $ 399,020 $ 399,020 $ 399,020 $ 399,020 $ 399,020 $ 399,020 $ 399,020 $ 399,020 $ 749,793 $ 749,793 $ 749,793 $ 749,793 $ 749,793 $ 749,793 $ 749,793 $ 749,793 $ (8,338) Net income Net income Net income Net income Net income Net income Net income Net income Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) Cash dividends, $0.08 per share Cash dividends, $0.08 per share Cash dividends, $0.08 per share Cash dividends, $0.08 per share Cash dividends, $0.08 per share Cash dividends, $0.08 per share Cash dividends, $0.08 per share Cash dividends, $0.08 per share Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year 39 39 39 39 39 39 39 39 31,762 31,762 31,762 31,762 31,762 31,762 31,762 31,762 39 39 39 39 39 (20,913 ) 39 39 39 (20,913 ) (20,913 ) 217 (20,913 ) (20,913 ) 217 217 (20,913 ) (20,913 ) (20,913 ) 217 217 217 217 217 9,444 9,444 9,444 9,444 9,444 9,444 9,444 9,444 13,026 13,026 13,026 13,026 13,026 13,026 13,026 13,026 1,650 1,650 1,650 1,650 1,650 1,650 1,650 1,650 24,122 24,122 24,122 24,122 24,122 24,122 24,122 24,122 1,773 1,773 1,773 1,773 1,773 1,773 1,773 1,773 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 See notes to consolidated financial statements. See notes to consolidated financial statements. See notes to consolidated financial statements. See notes to consolidated financial statements. See notes to consolidated financial statements. See notes to consolidated financial statements. See notes to consolidated financial statements. See notes to consolidated financial statements.  CHIYODA CORPORATION ANNUAL REPORT 2010 $ 466,628 $ 466,628 $ 466,628 $ 466,628 $ 466,628 $ 466,628 $ 466,628 $ 466,628 $ 399,060 $ 399,060 $ 399,060 $ 399,060 $ 399,060 $ 399,060 $ 399,060 $ 399,060 $ 760,860 $ 760,860 $ 760,860 $ 760,860 $ 760,860 $ 760,860 $ 760,860 $ 760,860 $ 1,106 - 5 - - 5 - - 5 - - 5 - - 5 - - 5 - - 5 - - 5 - Chiyoda Corporation and Consolidated Subsidiaries Chiyoda Corporation and Consolidated Subsidiaries Chiyoda Corporation and Consolidated Subsidiaries Chiyoda Corporation and Consolidated Subsidiaries Chiyoda Corporation and Consolidated Subsidiaries Chiyoda Corporation and Consolidated Subsidiaries Chiyoda Corporation and Consolidated Subsidiaries Consolidated Statements of Changes in Equity Consolidated Statements of Changes in Equity Consolidated Statements of Changes in Equity Consolidated Statements of Changes in Equity Consolidated Statements of Changes in Equity Consolidated Statements of Changes in Equity Consolidated Statements of Changes in Equity Years Ended March 31, 2010 and 2009 Years Ended March 31, 2010 and 2009 Years Ended March 31, 2010 and 2009 Years Ended March 31, 2010 and 2009 Years Ended March 31, 2010 and 2009 Years Ended March 31, 2010 and 2009 Years Ended March 31, 2010 and 2009 Thousands Thousands Thousands Thousands Thousands Thousands Thousands Outstanding Outstanding Outstanding Outstanding Outstanding Outstanding Outstanding Number of Number of Number of Number of Number of Number of Number of Shares of Shares of Shares of Shares of Shares of Shares of Shares of Common Common Common Stock Stock Stock Common Common Common Common Common Common Common Common Common Stock Stock Stock Stock Stock Stock Stock Stock Stock Common Common Capital Capital Capital Capital Capital Capital Capital Retained Retained Retained Stock Stock Surplus Surplus Surplus Surplus Surplus Surplus Surplus Earnings Earnings Earnings BALANCE, APRIL 1, 2008 BALANCE, APRIL 1, 2008 BALANCE, APRIL 1, 2008 BALANCE, APRIL 1, 2008 BALANCE, APRIL 1, 2008 BALANCE, APRIL 1, 2008 BALANCE, APRIL 1, 2008 192,279 192,279 192,279 192,279 192,279 192,279 192,279 ¥ 12,935 ¥ 12,935 ¥ 12,935 ¥ 12,935 ¥ 12,935 ¥ 12,935 ¥ 12,935 ¥ 6,718 ¥ 6,718 ¥ 6,718 ¥ 6,718 ¥ 6,718 ¥ 6,718 ¥ 6,718 ¥ 65,155 ¥ 65,155 ¥ 65,155 Net income Net income Net income Net income Net income Net income Net income Issuance of common stock to a third party (Note 9) Issuance of common stock to a third party (Note 9) Issuance of common stock to a third party (Note 9) Issuance of common stock to a third party (Note 9) Issuance of common stock to a third party (Note 9) Issuance of common stock to a third party (Note 9) Issuance of common stock to a third party (Note 9) 67,080 67,080 67,080 67,080 67,080 67,080 67,080 30,454 30,454 30,454 30,454 30,454 30,454 30,454 30,387 30,387 30,387 30,387 30,387 30,387 30,387 Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) Cash dividends, ¥10.00 per share Cash dividends, ¥10.00 per share Cash dividends, ¥10.00 per share Cash dividends, ¥10.00 per share Cash dividends, ¥10.00 per share Cash dividends, ¥10.00 per share Cash dividends, ¥10.00 per share Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year (60 ) (60 ) (60 ) (60 ) (60 ) (60 ) (60 ) BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 259,328 259,328 259,328 259,328 259,328 259,328 259,328 43,392 43,392 43,392 43,392 43,392 43,392 43,392 37,108 37,108 37,108 37,108 37,108 37,108 37,108 69,730 69,730 69,730 Net income Net income Net income Net income Net income Net income Net income Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) Cash dividends, ¥7.50 per share Cash dividends, ¥7.50 per share Cash dividends, ¥7.50 per share Cash dividends, ¥7.50 per share Cash dividends, ¥7.50 per share Cash dividends, ¥7.50 per share Cash dividends, ¥7.50 per share Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year 32 32 32 32 32 32 32 3 3 3 3 3 3 3 3 3 3 3 3 3 3 (1,944 ) (1,944 ) (1,944 ) 20 20 20 (153 ) (153 ) (153 ) (153 ) (153 ) (153 ) (153 ) BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 259,207 259,207 259,207 259,207 259,207 259,207 259,207 ¥ 43,396 ¥ 43,396 ¥ 43,396 ¥ 43,396 ¥ 43,396 ¥ 43,396 ¥ 43,396 ¥ 37,112 ¥ 37,112 ¥ 37,112 ¥ 37,112 ¥ 37,112 ¥ 37,112 ¥ 37,112 ¥ 70,759 ¥ 70,759 ¥ 70,759 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 BALANCE, MARCH 31, 2009 $ 466,588 $ 466,588 $ 466,588 $ 466,588 $ 466,588 $ 466,588 $ 466,588 $ 399,020 $ 399,020 $ 399,020 $ 399,020 $ 399,020 $ 399,020 $ 399,020 $ 749,793 $ 749,793 $ 749,793 $ 749,793 $ 749,793 Common Common Common Common Common Common Common Capital Capital Capital Stock Stock Stock Stock Stock Stock Stock Surplus Surplus Surplus Capital Capital Capital Capital Retained Retained Retained Retained Retained Surplus Surplus Surplus Surplus Earnings Earnings Earnings Earnings Earnings Net income Net income Net income Net income Net income Net income Net income Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan Issuance of common stock by stock option plan (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) (Notes 9 and 10) Cash dividends, $0.08 per share Cash dividends, $0.08 per share Cash dividends, $0.08 per share Cash dividends, $0.08 per share Cash dividends, $0.08 per share Cash dividends, $0.08 per share Cash dividends, $0.08 per share Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Changes in the scope of consolidation Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Repurchase of treasury stock Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year Net change in the year See notes to consolidated financial statements. See notes to consolidated financial statements. See notes to consolidated financial statements. See notes to consolidated financial statements. See notes to consolidated financial statements. See notes to consolidated financial statements. See notes to consolidated financial statements. BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 BALANCE, MARCH 31, 2010 $ 466,628 $ 466,628 $ 466,628 $ 466,628 $ 466,628 $ 466,628 $ 466,628 $ 399,060 $ 399,060 $ 399,060 $ 399,060 $ 399,060 $ 399,060 $ 399,060 $ 760,860 $ 760,860 $ 760,860 $ 760,860 $ 760,860 Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Unrealized Unrealized Unrealized Unrealized Unrealized Unrealized Unrealized Gain (Loss) Deferred Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) on Loss on on on on on on on Available- Derivatives Available- Available- Available- Available- Available- Available- for-Sale under Hedge for-Sale for-Sale for-Sale for-Sale for-Sale for-Sale Securities Accounting Securities Securities Securities Securities Securities Securities Deferred Deferred Deferred Deferred Loss on Loss on Loss on Loss on Derivatives Derivatives Derivatives Derivatives under Hedge under Hedge under Hedge under Hedge Accounting Accounting Accounting Accounting Deferred Deferred Loss on Loss on Derivatives Derivatives under Hedge under Hedge Accounting Accounting Foreign Currency Translation Adjustments Foreign Foreign Foreign Foreign Currency Currency Currency Currency Translation Translation Translation Translation Adjustments Adjustments Adjustments Adjustments Foreign Foreign Currency Currency Translation Translation Adjustments Adjustments Retained Retained Earnings Earnings Retained Retained Earnings Earnings Treasury Stock Treasury Treasury Treasury Treasury Stock Stock Stock Stock Treasury Treasury Stock Stock Total Total Total Total Total Total Total Minority Interests Minority Minority Minority Minority Interests Interests Interests Interests Minority Minority Interests Interests Total Total Total Total Total Total Total Equity Equity Equity Equity Equity Equity Equity 30 30 30 30 30 30 30 3 3 3 3 3 3 3 3 3 3 3 3 3 3 (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) 6,498 6,498 6,498 6,498 6,498 6,498 6,498 ¥ 65,155 ¥ 65,155 ¥ 65,155 ¥ 65,155 ¥ (847 ) ¥ (847 ) ¥ (847 ) ¥ (847 ) ¥ (847 ) ¥ (847 ) ¥ (847 ) ¥ (1,668) ¥ (1,668) ¥ (1,668) ¥ (1,668) ¥ (1,668) ¥ ¥ (1,668) ¥ (1,668) ¥ ¥ ¥ (6 ) ¥ (6 ) ¥ ¥ (6 ) (6 ) (6 ) (6 ) (6 ) ¥ (1,059) ¥ (1,059) ¥ (1,059) ¥ (1,059) ¥ (1,059) ¥ (1,059) ¥ (1,059) ¥ 81,228 ¥ 81,228 ¥ 81,228 ¥ 81,228 ¥ 81,228 ¥ 81,228 ¥ 81,228 ¥ 410 ¥ 410 ¥ 410 ¥ 410 ¥ 410 ¥ 410 ¥ 410 6,498 60,841 6,498 6,498 6,498 6,498 60,841 60,841 60,841 60,841 6,498 6,498 60,841 60,841 6 6 6 6 6 6 6 (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) (1,091 ) (1,091 ) (1,091 ) (1,091 ) (1,091 ) (1,091 ) (1,091 ) (6 ) (6 ) (6 ) (6 ) (6 ) (6 ) (6 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) 71 71 71 71 71 71 71 299 299 299 299 299 299 299 (1,462 ) (1,462 ) (1,462 ) (1,462 ) (1,462 ) (1,462 ) (1,462 ) 69,730 69,730 69,730 69,730 (775 ) (775 ) (775 ) (775 ) (775 ) (775 ) (775 ) (1,368 ) (1,368 ) (1,368 ) (1,368 ) (1,368 ) (1,368 ) (1,368 ) (1,469 ) (1,469 ) (1,469 ) (1,469 ) (1,469 ) (1,469 ) (1,469 ) (1,105 ) (1,105 ) (1,105 ) (1,105 ) (1,105 ) (1,105 ) (1,105 ) 145,513 145,513 145,513 145,513 145,513 145,513 145,513 404 404 404 404 404 404 404 2,953 2,953 2,953 2,953 2,953 2,953 2,953 (1,944 ) (1,944 ) (1,944 ) (1,944 ) 20 20 20 20 878 878 878 878 878 878 878 1,211 1,211 1,211 1,211 1,211 1,211 1,211 2,953 2,953 2,953 2,953 2,953 2,953 2,953 (1,944 ) 7 7 7 7 7 7 7 (1,944 ) (1,944 ) (1,944 ) (1,944 ) (1,944 ) (1,944 ) 20 20 20 20 20 (109 ) (109 ) (109 ) (109 ) (109 ) 2,243 2,243 2,243 2,243 20 20 (109 ) (109 ) 2,243 2,243 2,243 164 164 164 164 164 164 164 (109 ) (109 ) (109 ) (109 ) (109 ) (109 ) (109 ) 153 153 153 153 153 153 153 ¥ 70,759 ¥ 70,759 ¥ 70,759 ¥ 70,759 ¥ 102 ¥ 102 ¥ 102 ¥ 102 ¥ 102 ¥ 102 ¥ 102 ¥ (156 ) ¥ (156 ) ¥ (156 ) ¥ (156 ) ¥ (156 ) ¥ (156 ) ¥ (156 ) ¥ (1,315) ¥ (1,315) ¥ (1,315) ¥ (1,315) ¥ (1,315) ¥ (1,315) ¥ (1,315) ¥ (1,215) ¥ (1,215) ¥ (1,215) ¥ (1,215) ¥ (1,215) ¥ (1,215) ¥ (1,215) ¥ 148,683 ¥ 148,683 ¥ 148,683 ¥ 148,683 ¥ 148,683 ¥ 148,683 ¥ 148,683 ¥ 569 ¥ 569 ¥ 569 ¥ 569 ¥ 569 ¥ 569 ¥ 569 ¥ 81,638 ¥ 81,638 ¥ 81,638 ¥ 81,638 ¥ 81,638 ¥ 81,638 ¥ 81,638 6,498 6,498 6,498 6,498 6,498 60,841 60,841 60,841 60,841 60,841 6,498 6,498 60,841 60,841 6 6 6 6 6 6 6 (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (1,922 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) (46 ) (1,097 ) (1,097 ) (1,097 ) (1,097 ) (1,097 ) (1,097 ) (1,097 ) 145,917 145,917 145,917 145,917 145,917 145,917 145,917 2,953 2,953 2,953 2,953 2,953 2,953 2,953 7 7 7 7 7 7 7 (1,944 ) (1,944 ) (1,944 ) (1,944 ) (1,944 ) (1,944 ) (1,944 ) 20 20 20 20 20 20 20 (109 ) (109 ) (109 ) (109 ) (109 ) (109 ) (109 ) 2,408 2,408 2,408 2,408 2,408 2,408 2,408 ¥ 149,253 ¥ 149,253 ¥ 149,253 ¥ 149,253 ¥ 149,253 ¥ 149,253 ¥ 149,253 Thousands of U.S. Dollars (Note 1) Thousands of U.S. Dollars (Note 1) Thousands of U.S. Dollars (Note 1) Thousands of U.S. Dollars (Note 1) Thousands of U.S. Dollars (Note 1) Thousands of U.S. Dollars (Note 1) Thousands of U.S. Dollars (Note 1) Unrealized Unrealized Unrealized Unrealized Unrealized Unrealized Unrealized Gain (Loss) Deferred Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) on Loss on on on on on on on Available- Derivatives Available- Available- Available- Available- Available- Available- for-Sale under Hedge for-Sale for-Sale for-Sale for-Sale for-Sale for-Sale Securities Accounting Securities Deferred Deferred Deferred Deferred Loss on Loss on Loss on Loss on Derivatives Derivatives Derivatives Derivatives under Hedge under Hedge under Hedge under Hedge Accounting Accounting Accounting Accounting Deferred Deferred Loss on Loss on Derivatives Derivatives under Hedge under Hedge Accounting Accounting Securities Securities Securities Securities Securities Retained Retained Earnings Earnings Foreign Currency Translation Adjustments Foreign Foreign Foreign Foreign Currency Currency Currency Currency Translation Translation Translation Translation Adjustments Adjustments Adjustments Adjustments Foreign Foreign Currency Currency Translation Translation Adjustments Adjustments Treasury Stock Treasury Treasury Treasury Treasury Stock Stock Stock Stock Treasury Treasury Stock Stock Total Total Total Total Total Total Total Minority Interests Minority Minority Minority Minority Interests Interests Interests Interests Minority Minority Interests Interests Total Total Total Total Total Equity Equity Equity Equity Equity Total Total Equity Equity $ 749,793 $ 749,793 $ (8,338) $ (8,338) $ (8,338) $ (8,338) $ (8,338) $ (8,338) $ (8,338) $ (14,712 ) $ (14,712 ) $ (14,712 ) $ (14,712 ) $ (14,712 ) $ (14,712 ) $ (14,712 ) $ (15,799 ) $ (15,799 ) $ (15,799 ) $ (15,799 ) $ (15,799 ) $ (15,799 ) $ (15,799 ) $ (11,892 ) $ (11,892 ) $ (11,892 ) $ (11,892 ) $ (11,892 ) $ (11,892 ) $ (11,892 ) $ 1,564,660 $ 1,564,660 $ 1,564,660 $ 1,564,660 $ 1,564,660 $ 1,564,660 $ 1,564,660 $ 4,346 $ 4,346 $ 4,346 $ 4,346 $ 4,346 $ 4,346 $ 4,346 39 39 39 39 39 39 39 39 39 39 39 39 39 39 31,762 31,762 31,762 31,762 31,762 31,762 31,762 (20,913 ) (20,913 ) (20,913 ) (20,913 ) (20,913 ) 217 217 217 217 217 (20,913 ) (20,913 ) 217 217 9,444 9,444 9,444 9,444 9,444 9,444 9,444 13,026 13,026 13,026 13,026 13,026 13,026 13,026 1,650 1,650 1,650 1,650 1,650 1,650 1,650 (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) 31,762 31,762 31,762 31,762 31,762 31,762 31,762 79 79 (20,913 ) 79 79 79 79 79 (20,913 ) (20,913 ) (20,913 ) (20,913 ) (20,913 ) (20,913 ) 217 217 217 217 217 (1,178 ) (1,178 ) (1,178 ) (1,178 ) 24,122 24,122 24,122 24,122 (1,178 ) (1,178 ) 24,122 24,122 (1,178 ) 24,122 217 217 1,773 1,773 1,773 1,773 1,773 1,773 1,773 $ 760,860 $ 760,860 $ 1,106 $ 1,106 $ 1,106 $ 1,106 $ 1,106 $ 1,106 $ 1,106 $ (1,685 ) $ (1,685 ) $ (1,685 ) $ (1,685 ) $ (1,685 ) $ (1,685 ) $ (1,685 ) $ (14,148 ) $ (14,148 ) $ (14,148 ) $ (14,148 ) $ (14,148 ) $ (14,148 ) $ (14,148 ) $ (13,070 ) $ (13,070 ) $ (13,070 ) $ (13,070 ) $ (13,070 ) $ (13,070 ) $ (13,070 ) $ 1,598,750 $ 1,598,750 $ 1,598,750 $ 1,598,750 $ 1,598,750 $ 1,598,750 $ 1,598,750 $ 6,120 $ 6,120 $ 6,120 $ 6,120 $ 6,120 $ 6,120 $ 6,120 $ 1,569,008 $ 1,569,008 $ 1,569,008 $ 1,569,008 $ 1,569,008 $ 1,569,008 $ 1,569,008 31,762 31,762 31,762 31,762 31,762 31,762 31,762 79 79 79 79 79 79 79 (20,913 ) (20,913 ) (20,913 ) (20,913 ) (20,913 ) (20,913 ) (20,913 ) 217 217 217 217 217 217 217 (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) (1,178 ) 25,896 25,896 25,896 25,896 25,896 25,896 25,896 $ 1,604,871 $ 1,604,871 $ 1,604,871 $ 1,604,871 $ 1,604,871 $ 1,604,871 $ 1,604,871 - 5 - - 5 - - 5 - - 5 - - 5 - - 5 - - 5 - CHIYODA CORPORATION ANNUAL REPORT 2010  Chiyoda Corporation and Consolidated Subsidiaries Consolidated Statements of Cash Flows Years Ended March 31, 2010 and 2009 Chiyoda Corporation and Consolidated Subsidiaries Consolidated Statements of Cash Flows Years Ended March 31, 2010 and 2009 OPERATING ACTIVITIES: Income before income taxes and minority interests Adjustments for: Income taxes paid Depreciation and amortization Reversal of allowance for doubtful accounts—net Provision for warranty costs for completed works Provision for loss on construction contracts Provision for (reversal of) retirement benefits—net Loss on valuation of investment securities Foreign exchange loss (gain)—net Equity in earnings of associated companies Changes in operating assets and liabilities: Decrease (increase) in trade notes and accounts receivable, and costs and estimated earnings on long-term construction contracts Decrease in costs of construction contracts in process Decrease in jointly controlled assets of joint venture Increase in interest and dividend receivable Increase in trade notes and accounts payable Decrease in advance receipts on construction contracts Increase (decrease) in deposits received Decrease in accounts receivable—other Decrease in accrued liability of a defined contribution pension plan Other—net Total adjustments Millions of Yen 2010 2009 Thousands of U.S. Dollars (Note 1) 2010 ¥ 4,714 ¥ 9,651 $ 50,695 (7,531 ) 2,059 1,957 (72 ) (80,979 ) (6 ) (158 ) 678 125 374 1,754 43 (56 ) 1,859 22,143 (67 ) 7,297 1,344 4,024 78 (144 ) (26 ) (137 ) 842 (1,550 ) 469 9,692 30,508 (13,859 ) 171 92,256 5,051 104,216 328,053 (694 ) (3,753 ) (7,465 ) 12,031 (43,592 ) (93,209 ) (468,731 ) 129,367 2,772 1 656 (511 ) 2,654 19 7,061 (800 ) (811 ) (9 ) 8,446 (8,604 ) (102 ) 3,898 (679 ) 41,921 Net cash provided by operating activities 8,613 8,971 92,616 INVESTING ACTIVITIES: Payments for time deposits Proceeds from withdrawal of time deposits Payments for purchases of investment securities Purchases of property, plant and equipment Purchases of intangible assets Proceeds from collections of long-term loans Payments for acquisition of shares (ARROW HUMAN RESOURCES Co., Ltd. for 2010 and IT Engineering Ltd. for 2009) affecting scope of consolidation, net of cash acquired Other—net 539 (539 ) (5,804 ) 5,804 888 (5,761 ) (65 ) (535 ) (922 ) (9,914 ) (563 ) (942 ) (1,156 ) (10,135 ) 51 551 (388 ) 14 (215 ) 40 (4,176 ) 159 Net cash used in investing activities (2,722 ) (1,072 ) (29,276 ) FORWARD ¥ 5,890 ¥ 7,898 $ 63,340  CHIYODA CORPORATION ANNUAL REPORT 2010 - 6 - (Continued) Chiyoda Corporation and Consolidated Subsidiaries Consolidated Statements of Cash Flows Years Ended March 31, 2010 and 2009 Millions of Yen 2010 2009 Thousands of U.S. Dollars (Note 1) 2010 FORWARD ¥ 5,890 ¥ 7,898 $ 63,340 FINANCING ACTIVITIES: Proceeds from long-term debt Repayments of long-term debt Proceeds from issuance of common stock Payments of cash dividends Payments of cash dividends to minority shareholders Other—net (18 ) 7 (1,940 ) (7 ) (121 ) 10,000 (10,039 ) 60,577 (1,920 ) (10 ) (59 ) (193 ) 79 (20,863 ) (78 ) (1,303 ) Net cash (used in) provided by financing activities (2,079 ) 58,548 (22,358 ) FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS 152 (999 ) 1,640 NET INCREASE IN CASH AND CASH EQUIVALENTS 3,963 65,447 42,621 INCREASE IN CASH AND CASH EQUIVALENTS FROM NEWLY CONSOLIDATED SUBSIDIARY 290 3,122 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 135,536 70,089 1,457,381 CASH AND CASH EQUIVALENTS, END OF YEAR ¥ 139,790 ¥ 135,536 $ 1,503,125 ADDITIONAL INFORMATION: ARROW HUMAN RESOURCES Co., Ltd. was included in the scope of consolidation for the year ended March 31, 2010, through the acquisition of shares. The acquisition cost and payments for the acquisition were as follows: Current assets Investments and other assets Current liabilities Long-term liabilities Net assets acquired Goodwill Shares of minor shareholders Pre-acquisition carrying amount of investment Cash acquired ¥ 719 127 (545 ) (139 ) 161 599 (6 ) (75 ) (291 ) $ 7,734 1,370 (5,870 ) (1,496 ) 1,738 6,450 (69 ) (807 ) (3,135 ) Net of cash acquired ¥ 388 $ 4,176 See notes to consolidated financial statements. - 7 - (Concluded) CHIYODA CORPORATION ANNUAL REPORT 2010  Chiyoda Corporation and Consolidated Subsidiaries Notes to Consolidated Financial Statements Years Ended March 31, 2010 and 2009 Chiyoda Corporation and Consolidated Subsidiaries Notes to Consolidated Financial Statements Years Ended March 31, 2010 and 2009 1. BASIS OF PRESENTING CONSOLIDATED FINANCIAL STATEMENTS The accompanying consolidated financial statements have been prepared in accordance with the provisions set forth in the Japanese Financial Instruments and Exchange Act and its related accounting regulations and in conformity with accounting principles generally accepted in Japan ("Japanese GAAP"), which are different in certain respects as to application and disclosure requirements of International Financial Reporting Standards. In preparing these consolidated financial statements, certain reclassifications and rearrangements have been made to the consolidated financial statements issued domestically in order to present them in a form which is more familiar to readers outside Japan. In addition, certain reclassifications and rearrangements have been made in the 2009 financial statements in order for them to conform to classifications and presentations used in 2010. The consolidated financial statements are stated in Japanese yen, the currency of the country in which Chiyoda Corporation (the "Company") is incorporated and principally operates. The translations of Japanese yen amounts into U.S. dollar amounts are included solely for the convenience of readers outside Japan and have been made at the rate of ¥93 to $1, the approximate rate of exchange at March 31, 2010. Such translations should not be construed as representations that the Japanese yen amounts could be converted into U.S. dollars at that or any other rate. Japanese yen figures less than a million yen are rounded down to the nearest million yen, except for per share data. U.S. dollar figures less than a thousand U.S. dollars are rounded down to the nearest thousand U.S. dollars, except for per share data. 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES a. Consolidation—The consolidated financial statements for the year ended March 31, 2010 include the accounts of the Company and its 19 significant (17 in 2009) subsidiaries (together, the "Group"). Under the control or influence concept, those companies in which the Company, directly or indirectly, is able to exercise control over operations are fully consolidated, and those companies over which the Group has the ability to exercise significant influence are accounted for by the equity method. Investments in two (three in 2009) associated companies are accounted for by the equity method. Investments in the remaining unconsolidated subsidiaries and associated companies are stated at cost. If the equity method of accounting had been applied to the investments in these companies, the effect on the accompanying consolidated financial statements would not be material. The excess of the cost of the Company's investments in consolidated subsidiaries and associated companies over the fair value of the net assets of the acquired subsidiary at the date of acquisition is being amortized over a period of 20 years. All significant intercompany balances and transactions have been eliminated in consolidation. All material unrealized profit included in assets resulting from transactions within the Group is eliminated. b. Construction Contracts—For the year ended March 31, 2009, revenues on construction contracts greater than ¥100 million and having a construction duration exceeding one year are recognized on the percentage-of-completion method based on the ratio of costs incurred to total estimated costs. Under this method, related costs and estimated earnings in excess of progress billings are presented as a current asset. In December 2007, the Accounting Standards Board of Japan (the "ASBJ") issued ASBJ Statement No. 15 "Accounting Standard for Construction Contracts" and ASBJ Guidance No. 18 "Guidance on Accounting Standard for Construction Contracts." Under the previous Japanese GAAP, either the completed-contract method or the percentage-of-completion method was permitted to account for construction contracts. Under this new accounting standard, the construction revenue and construction costs should be recognized by the percentage-of-completion method, if the outcome of a construction contract can be estimated reliably. When total construction revenue, total construction costs and the stage of completion of the contract at the balance sheet date can be reliably measured, the outcome of a construction contract can be estimated reliably. If the outcome of a construction contract cannot be reliably estimated, the completed-contract method should be applied. When it is probable that the total construction costs will exceed total construction revenue, an estimated loss on the contract should be immediately recognized by providing for a loss on construction contracts. This standard is applicable to construction contracts and software development contracts and effective for fiscal years beginning on or after April 1, 2009. - 8 -  CHIYODA CORPORATION ANNUAL REPORT 2010 The Group applied the new accounting standard effective April 1, 2009. The effect of this change was not material. Concerning the construction contracts, the Group applies the accounting methods below: Unbilled costs on the other contracts, which are accounted for by the completed-contract method, are stated as costs of construction contracts in process. Payments received in excess of costs and estimated earnings on the contracts, which are accounted for by the percentage-of-completion method, and payments received on the other contracts are presented as current liabilities. Costs of preparation work for unsuccessful proposals and other projects which are not realized are charged to income and are included in costs of revenue. c. Cash Equivalents—Cash equivalents are short-term investments that are readily convertible into cash and that are exposed to insignificant risk of changes in value. Cash equivalents include time deposits and certificate of deposits both of which mature or become due within three months of the date of acquisition. d. Short-Term Investments—Short-term investments are time deposits which will mature after three months of the date of acquisition. Short-term investments are exposed to insignificant risk of changes in value. - 9 - All significant intercompany balances and transactions have been eliminated in consolidation. All material unrealized profit included in assets resulting from transactions within the Group is eliminated. b. Construction Contracts—For the year ended March 31, 2009, revenues on construction contracts greater than ¥100 million and having a construction duration exceeding one year are recognized on the percentage-of-completion method based on the ratio of costs incurred to total estimated costs. Under this method, related costs and estimated earnings in excess of progress billings are presented as a current asset. In December 2007, the Accounting Standards Board of Japan (the "ASBJ") issued ASBJ Statement No. 15 "Accounting Standard for Construction Contracts" and ASBJ Guidance No. 18 "Guidance on Accounting Standard for Construction Contracts." Under the previous Japanese GAAP, either the completed-contract method or the percentage-of-completion method was permitted to account for construction contracts. Under this new accounting standard, the construction revenue and construction costs should be recognized by the percentage-of-completion method, if the outcome of a construction contract can be estimated reliably. When total construction revenue, total construction costs and the stage of completion of the contract at the balance sheet date can be reliably measured, the outcome of a construction contract can be estimated reliably. If the outcome of a construction contract cannot be reliably estimated, the completed-contract method should be applied. When it is probable that the total construction costs will exceed total construction revenue, an estimated loss on the contract should be immediately recognized by providing for a loss on construction contracts. This standard is applicable to construction contracts and software development contracts and effective for fiscal years beginning on or after April 1, 2009. The Group applied the new accounting standard effective April 1, 2009. The effect of this change was not material. Concerning the construction contracts, the Group applies the accounting methods below: Unbilled costs on the other contracts, which are accounted for by the completed-contract method, are stated as costs of construction contracts in process. Payments received in excess of costs and estimated earnings on the contracts, which are accounted for by the percentage-of-completion method, and payments received on the other contracts are presented as current liabilities. Costs of preparation work for unsuccessful proposals and other projects which are not realized are charged to income and are included in costs of revenue. c. Cash Equivalents—Cash equivalents are short-term investments that are readily convertible into cash and that are exposed to insignificant risk of changes in value. Cash equivalents include time deposits and certificate of deposits both of which mature or become due within three months of the date of acquisition. d. Short-Term Investments—Short-term investments are time deposits which will mature after three months of the date of acquisition. Short-term investments are exposed to insignificant risk of changes in value. - 9 - CHIYODA CORPORATION ANNUAL REPORT 2010  Chiyoda Corporation and Consolidated Subsidiaries Notes to Consolidated Financial Statements Years Ended March 31, 2010 and 2009 e. Investment Securities—All marketable securities are classified as available-for-sale securities and are reported at fair value, with unrealized gains and losses, net of applicable taxes, reported in a separate component of equity. The cost of securities sold is determined based on the moving-average method. Non-marketable available-for-sale securities are stated at cost determined by the moving-average method. For other than temporary declines in fair value, non-marketable securities are reduced to net realizable value by a charge to income. f. Allowance for Doubtful Accounts—The allowance for doubtful accounts is stated in amounts considered to be appropriate based on the Group's past credit loss experience and an evaluation of potential losses in the receivables outstanding. g. Property, Plant and Equipment—Property, plant and equipment are stated at cost. Depreciation is computed by the declining-balance method, except for buildings owned by the Company which are depreciated using the straight-line method, at rates based on the estimated useful lives of the assets. The range of useful lives is from 11 to 57 years for buildings and structures, from 4 to 17 years for machinery and equipment, and from 2 to 15 years for tools, furniture and fixtures. Equipment held for lease is depreciated by the straight-line method over the respective lease periods. h. Long-Lived Assets—The Group reviews its long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset or asset group may not be recoverable. An impairment loss would be recognized if the carrying amount of an asset or asset group exceeds the sum of the undiscounted future cash flows expected to result from the continued use and eventual disposition of the asset or asset group. The impairment loss would be measured as the amount by which the carrying amount of the asset exceeds its recoverable amount, which is the higher of the discounted cash flows from the continued use and eventual disposition of the asset or the net selling price at disposition. i. Other Assets—Intangible assets are carried at cost less accumulated amortization, which is calculated by the straight-line method over their estimated useful lives. Software for internal use is amortized on a straight-line basis over its estimated useful life (five years at the maximum). j. Allowance for Warranty Costs for Completed Work—The allowance for warranty costs for completed work is provided based on past rate experience. k. Allowance for Losses on Construction Contracts—The allowance for losses on construction contracts is provided for an estimated amount of probable losses to be incurred in future years in respect of construction projects in progress. When there are losses on completed-contract method applied contract, the allowance for losses on construction contracts on the balance sheet is the net amount of costs of construction contracts in process on the same contract. l. Provision for Treatment of PCB Waste—Provision for treatment of PCB (Poly Chlorinated Biphenyl) waste is provided based on estimated costs of the treatment for PCB products and equipment as well as their collection and transportation fees. m. Retirement Benefits—Employees of the Company are, under most circumstances, entitled to payments from the defined contribution pension plan and the defined benefit corporate pension plan. Employees of certain of the Company's consolidated subsidiaries are, under most circumstances, entitled to certain lump-sum severance payments and pension payments. Effective April 1, 2000, the Company and its domestic consolidated subsidiaries adopted a new accounting standard for employees' retirement benefits and accounted for the liability for retirement benefits based on the projected benefit obligations and plan assets at the balance sheet date. The transitional obligation of ¥5,696 million ($61,251 thousand) is being amortized and charged to income over 15 years using the straight-line amortization method and presented as an operating expense in the consolidated statements of income for the years ended March 31, 2010 and 2009. Retirement benefits to directors, officers and corporate auditors of the Company are provided at the amount which would be required if all directors, officers and corporate auditors terminated at March 31, 2009. Effective June 23, 2009, the Company terminated its unfunded retirement benefit allowance for all directors, officers and corporate auditors under the resolution of shareholders meeting and board meeting. The outstanding balance of retirement benefit allowance for directors, officers and corporate auditors of the Company was reclassified to non-current liabilities—other liabilities in the year ended March 31, 2010. Retirement benefits to directors, officers and corporate auditors of the Company's certain consolidated subsidiaries are provided at the amount which would be required if all directors, officers and corporate auditors terminated at March 31, 2010 and 2009.  CHIYODA CORPORATION ANNUAL REPORT 2010 - 10 - n. Research and Development Costs—Research and development costs are charged to income when incurred. o. Leases—In March 2007, the ASBJ issued ASBJ Statement No. 13, "Accounting Standard for Lease Transactions," which revised the previous accounting standard for lease transactions issued in June 1993. The revised accounting standard for lease transactions is effective for fiscal years beginning on or after April 1, 2008 with early adoption permitted for fiscal years beginning on or after April 1, 2007. Under the previous accounting standard, finance leases that deem to transfer ownership of the leased property to the lessee were to be capitalized. However, other finance leases were permitted to be accounted for as operating lease transactions if certain "as if capitalized" information is disclosed in the note to the lessee's financial statements. The revised accounting standard requires that all finance lease transactions should be capitalized to recognize lease assets and lease obligations in the balance sheet. In addition, the revised accounting standard permits leases which existed at the transition date and do not transfer ownership of the leased property to the lessee to be accounted for as operating lease transactions with certain "as if capitalized information" disclosed in the notes to the lessee's financial statements. The Group applied the revised accounting standard effective April 1, 2008. In addition, the Group accounted for leases which existed at the transition date and do not transfer ownership of the leased property to the lessee as operating lease transactions. All other leases are accounted for as operating leases. p. Income Taxes—The provision for income taxes is computed based on the pretax income included in the consolidated statements of income. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred taxes are measured by applying currently enacted tax laws to the temporary differences. - 11 - Effective April 1, 2000, the Company and its domestic consolidated subsidiaries adopted a new accounting standard for employees' retirement benefits and accounted for the liability for retirement benefits based on the projected benefit obligations and plan assets at the balance sheet date. The transitional obligation of ¥5,696 million ($61,251 thousand) is being amortized and charged to income over 15 years using the straight-line amortization method and presented as an operating expense in the consolidated statements of income for the years ended March 31, 2010 and 2009. Retirement benefits to directors, officers and corporate auditors of the Company are provided at the amount which would be required if all directors, officers and corporate auditors terminated at March 31, 2009. Effective June 23, 2009, the Company terminated its unfunded retirement benefit allowance for all directors, officers and corporate auditors under the resolution of shareholders meeting and board meeting. The outstanding balance of retirement benefit allowance for directors, officers and corporate auditors of the Company was reclassified to non-current liabilities—other liabilities in the year ended March 31, 2010. Retirement benefits to directors, officers and corporate auditors of the Company's certain consolidated subsidiaries are provided at the amount which would be required if all directors, officers and corporate auditors terminated at March 31, 2010 and 2009. n. Research and Development Costs—Research and development costs are charged to income when incurred. o. Leases—In March 2007, the ASBJ issued ASBJ Statement No. 13, "Accounting Standard for Lease Transactions," which revised the previous accounting standard for lease transactions issued in June 1993. The revised accounting standard for lease transactions is effective for fiscal years beginning on or after April 1, 2008 with early adoption permitted for fiscal years beginning on or after April 1, 2007. Under the previous accounting standard, finance leases that deem to transfer ownership of the leased property to the lessee were to be capitalized. However, other finance leases were permitted to be accounted for as operating lease transactions if certain "as if capitalized" information is disclosed in the note to the lessee's financial statements. The revised accounting standard requires that all finance lease transactions should be capitalized to recognize lease assets and lease obligations in the balance sheet. In addition, the revised accounting standard permits leases which existed at the transition date and do not transfer ownership of the leased property to the lessee to be accounted for as operating lease transactions with certain "as if capitalized information" disclosed in the notes to the lessee's financial statements. The Group applied the revised accounting standard effective April 1, 2008. In addition, the Group accounted for leases which existed at the transition date and do not transfer ownership of the leased property to the lessee as operating lease transactions. All other leases are accounted for as operating leases. p. Income Taxes—The provision for income taxes is computed based on the pretax income included in the consolidated statements of income. The asset and liability approach is used to recognize deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities. Deferred taxes are measured by applying currently enacted tax laws to the temporary differences. The Company files a tax return under the consolidated corporate-tax system which allows companies to base tax payments on the combined profits or losses of the parent company and its wholly owned domestic subsidiaries. q. Foreign Currency Transactions—All short-term and long-term monetary receivables and payables denominated in foreign currencies are translated into Japanese yen at the exchange rates at the balance sheet date. The foreign exchange gains and losses from translation are recognized in the income statement to the extent that they are not hedged by foreign currency forward contracts. r. Foreign Currency Financial Statements—The balance sheet accounts of the consolidated foreign subsidiaries are translated into Japanese yen at the current exchange rate as of the balance sheet date except for equity, which is translated at the historical rate. Differences arising from such translation were shown as "Foreign currency translation adjustments" in a separate component of equity. Revenue and expense accounts of consolidated foreign subsidiaries are translated into Japanese yen at the current exchange rate as of the balance sheet date. s. Derivatives and Hedging Activities—The Company uses a variety of derivative financial - 11 - instruments, including foreign currency forward contracts as a means of hedging exposure to foreign currency risks. The Company does not enter into derivatives for trading or speculative purposes. Derivative financial instruments and foreign currency transactions are classified and accounted for as follows: (a) all derivatives are recognized as either assets or liabilities and measured at fair value, with gains or losses recognized in the income statement and (b) for derivatives used for hedging purposes, if derivatives qualify for hedge accounting, because of high correlation and effectiveness between the hedging instruments and the hedged items, gains or losses on derivatives are deferred until maturity of the hedged transactions. The foreign currency forward contracts are utilized to hedge foreign exchange risks. Certain assets and liabilities on construction contracts denominated in foreign currencies are translated at the contracted rates if the forward contracts qualify for hedge accounting. t. Per Share Information—Basic net income per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period, retroactively adjusted for stock splits. CHIYODA CORPORATION ANNUAL REPORT 2010  Diluted net income per share reflects the potential dilution that could occur if securities were exercised or converted into common stock. Diluted net income per share of common stock assumes full conversion of the outstanding convertible notes and bonds at the beginning of the year (or at the time of issuance) with an applicable adjustment for related interest expense, net of tax, and full exercise of outstanding warrants. Cash dividends per share presented in the accompanying consolidated statements of income are dividends applicable to the respective years including dividends to be paid after the end of the year. - 12 - The Company files a tax return under the consolidated corporate-tax system which allows companies to base tax payments on the combined profits or losses of the parent company and its wholly owned domestic subsidiaries. q. Foreign Currency Transactions—All short-term and long-term monetary receivables and payables denominated in foreign currencies are translated into Japanese yen at the exchange rates at the balance sheet date. The foreign exchange gains and losses from translation are recognized in the income statement to the extent that they are not hedged by foreign currency forward contracts. r. Foreign Currency Financial Statements—The balance sheet accounts of the consolidated foreign subsidiaries are translated into Japanese yen at the current exchange rate as of the balance sheet date except for equity, which is translated at the historical rate. Differences arising from such translation were shown as "Foreign currency translation adjustments" in a separate component of equity. Revenue and expense accounts of consolidated foreign subsidiaries are translated into Japanese yen at the current exchange rate as of the balance sheet date. Chiyoda Corporation and Consolidated Subsidiaries s. Derivatives and Hedging Activities—The Company uses a variety of derivative financial instruments, including foreign currency forward contracts as a means of hedging exposure to foreign currency risks. The Company does not enter into derivatives for trading or speculative purposes. Notes to Consolidated Financial Statements Years Ended March 31, 2010 and 2009 Derivative financial instruments and foreign currency transactions are classified and accounted for as follows: (a) all derivatives are recognized as either assets or liabilities and measured at fair value, with gains or losses recognized in the income statement and (b) for derivatives used for hedging purposes, if derivatives qualify for hedge accounting, because of high correlation and effectiveness between the hedging instruments and the hedged items, gains or losses on derivatives are deferred until maturity of the hedged transactions. The foreign currency forward contracts are utilized to hedge foreign exchange risks. Certain assets and liabilities on construction contracts denominated in foreign currencies are translated at the contracted rates if the forward contracts qualify for hedge accounting. t. Per Share Information—Basic net income per share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding for the period, retroactively adjusted for stock splits. Diluted net income per share reflects the potential dilution that could occur if securities were exercised or converted into common stock. Diluted net income per share of common stock assumes full conversion of the outstanding convertible notes and bonds at the beginning of the year (or at the time of issuance) with an applicable adjustment for related interest expense, net of tax, and full exercise of outstanding warrants. Cash dividends per share presented in the accompanying consolidated statements of income are dividends applicable to the respective years including dividends to be paid after the end of the year. u. New Accounting Pronouncements Business Combinations—In December 2008, the ASBJ issued a revised accounting standard for business combinations, ASBJ Statement No. 21, "Accounting Standard for Business Combinations." Major accounting changes under the revised accounting standard are as follows: (1) The current accounting standard for business combinations allows companies to apply the pooling of interests method of accounting when certain specific criteria are met such that the business combination is essentially regarded as a uniting-of-interests. The revised standard requires to account for such business combination by the purchase method and the pooling of interests method of accounting is no longer allowed. (2) The current accounting standard accounts for the research and development costs to be charged to income as incurred. Under the revised standard, an in-process research and development (IPR&D) acquired by the business combination is capitalized as an intangible asset. (3) The current accounting standard accounts for a bargain purchase gain (negative goodwill) to be systematically amortized within 20 years. Under the revised standard, the acquirer recognizes a bargain purchase gain in profit or loss on the acquisition date after reassessing whether it has correctly identified all of the assets acquired and all of the liabilities assumed with a review of such procedures used. This standard is applicable to business combinations undertaken on or after April 1, 2010 with early adoption permitted for fiscal years beginning on or after April 1, 2009. Unification of Accounting Policies Applied to Foreign Associated Companies for the Equity Method—The current accounting standard requires to unify accounting policies within the consolidation group. However, the current guidance allows to apply the equity method for the financial statements of its foreign associated company which have been prepared in accordance with generally accepted accounting principles in their respective jurisdictions without unification of accounting policies. - 12 - In March 2008, the ASBJ issued ASBJ Statement No. 16, "Accounting Standard for Equity Method of Accounting for Investments." The new standard requires adjustments to be made to conform the associate's accounting policies for similar transactions and events under similar circumstances to those of the parent company when the associate's financial statements are used in applying the equity method unless it is impracticable to determine adjustments. In addition, financial statements prepared by foreign associated companies in accordance with either International Financial Reporting Standards or the generally accepted accounting principles in the United States of America tentatively may be used in applying the equity method if the following items are adjusted so that net income is accounted for in accordance with Japanese GAAP unless they are not material: (1) amortization of goodwill; (2) scheduled amortization of actuarial gain or loss of pensions that has been directly recorded in the equity; (3) expensing capitalized development costs of R&D; (4) cancellation of the fair value model accounting for property, plant and equipment and investment properties and incorporation of the cost model accounting; (5) recording the prior years' effects of changes in accounting policies in the income statement where retrospective adjustments to the financial statements have been incorporated; and (6) exclusion of minority interests from net income, if contained. 0 CHIYODA CORPORATION ANNUAL REPORT 2010 - 13 - This standard is applicable to equity method of accounting for fiscal years beginning on or after April 1, 2010 with early adoption permitted for fiscal years beginning on or after April 1, 2009. Asset Retirement Obligations—In March 2008, the ASBJ published a new accounting standard for asset retirement obligations, ASBJ Statement No. 18 "Accounting Standard for Asset Retirement Obligations" and ASBJ Guidance No. 21 "Guidance on Accounting Standard for Asset Retirement Obligations." Under this accounting standard, an asset retirement obligation is defined as a legal obligation imposed either by law or contract that results from the acquisition, construction, development and the normal operation of a tangible fixed asset and is associated with the retirement of such tangible fixed asset. The asset retirement obligation is recognized as the sum of the discounted cash flows required for the future asset retirement and is recorded in the period in which the obligation is incurred if a reasonable estimate can be made. If a reasonable estimate of the asset retirement obligation cannot be made in the period the asset retirement obligation is incurred, the liability should be recognized when a reasonable estimate of asset retirement obligation can be made. Upon initial recognition of a liability for an asset retirement obligation, an asset retirement cost is capitalized by increasing the carrying amount of the related fixed asset by the amount of the liability. The asset retirement cost is subsequently allocated to expense through depreciation over the remaining useful life of the asset. Over time, the liability is accreted to its present value each period. Any subsequent revisions to the timing or the amount of the original estimate of undiscounted cash flows are reflected as an increase or a decrease in the carrying amount of the liability and the capitalized amount of the related asset retirement cost. This standard is effective for fiscal years beginning on or after April 1, 2010 with early adoption permitted for fiscal years beginning on or before March 31, 2010. Accounting Changes and Error Corrections—In December 2009, ASBJ issued ASBJ Statement No. 24 "Accounting Standard for Accounting Changes and Error Corrections" and ASBJ Guidance No. 24 "Guidance on Accounting Standard for Accounting Changes and Error Corrections." Accounting treatments under this standard and guidance are as follows: (1) Changes in accounting policies When a new accounting policy is applied with revision of accounting standards, a new policy is applied retrospectively unless the revised accounting standards include specific transitional provisions. When the revised accounting standards include specific transitional provisions, an entity shall comply with the specific transitional provisions. (2) Changes in presentations When the presentation of financial statements is changed, prior period financial statements are reclassified in accordance with the new presentation. (3) Changes in accounting estimates A change in an accounting estimate is accounted for in the period of the change if the change affects that period only, and is accounted for prospectively if the change affects both the period of the change and future periods. (4) Corrections of prior period errors When an error in prior period financial statements is discovered, those statements are restated. - 14 - CHIYODA CORPORATION ANNUAL REPORT 2010 1 Chiyoda Corporation and Consolidated Subsidiaries Notes to Consolidated Financial Statements Years Ended March 31, 2010 and 2009 This accounting standard and the guidance are applicable to accounting changes and corrections of prior period errors which are made from the beginning of the fiscal year that begins on or after April 1, 2011. Segment Information Disclosures—In March 2008, the ASBJ revised ASBJ Statement No. 17 "Accounting Standard for Segment Information Disclosures" and issued ASBJ Guidance No. 20 "Guidance on Accounting Standard for Segment Information Disclosures." Under the standard and guidance, an entity is required to report financial and descriptive information about its reportable segments. Reportable segments are operating segments or aggregations of operating segments that meet specified criteria. Operating segments are components of an entity about which separate financial information is available and such information is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. Generally, segment information is required to be reported on the same basis as is used internally for evaluating operating segment performance and deciding how to allocate resources to operating segments. This accounting standard and the guidance are applicable to segment information disclosures for the fiscal years beginning on or after April 1, 2010. 3. TRANSACTIONS WITH UNCONSOLIDATED SUBSIDIARIES AND ASSOCIATED COMPANIES Significant transactions with and balances due from/(to) unconsolidated subsidiaries and associated companies are summarized as follows: Transactions for the Year Ended March 31 Millions of Yen 2010 2009 Thousands of U.S. Dollars 2010 Revenue Cost of revenue Selling, general and administrative expenses 3 ¥ (2,288 ) (271 ) ¥ 122 (6,041 ) (1,290 ) 39 $ (24,606 ) (2,915 ) Balances at March 31 Notes and accounts receivable—trade Accounts receivable—other Notes and accounts payable—trade Accrued expenses and other ¥ 2 2 (84 ) (14 ) ¥ 23 18 (297 ) (106 ) $ 24 24 (913 ) (158 ) The Company guaranteed the indebtedness of a certain unconsolidated subsidiary in the amount of ¥2,586 million ($27,814 thousand) at March 31, 2010. 4. CONSTRUCTION CONTRACTS Costs and estimated earnings recognized with respect to construction contracts which are accounted for by the percentage-of-completion method at March 31, 2010 and 2009, were as follows: Costs and estimated earnings Amounts billed ¥ 563,887 (552,432 ) ¥ 1,191,100 (1,173,540 ) $ 6,063,304 (5,940,137 ) Net ¥ 11,454 ¥ 17,560 $ 123,166 Millions of Yen 2010 2009 Thousands of U.S. Dollars 2010  CHIYODA CORPORATION ANNUAL REPORT 2010 - 15 -  5. INVESTMENT SECURITIES Investment securities at March 31, 2010 and 2009, consisted of the following: Millions of Yen 2010 2009 Thousands of U.S. Dollars 2010 Non-current—Equity securities ¥ 5,153 ¥ 3,765 $ 55,417 The costs and aggregate fair values of investment securities at March 31, 2010 and 2009, were as follows: March 31, 2010 Millions of Yen Cost Unrealized Gains Unrealized Losses Fair Value Securities classified as available-for-sale—Equity securities ¥ 3,377 ¥ 507 ¥ 375 ¥ 3,508 March 31, 2009 Securities classified as available-for-sale—Equity securities ¥ 3,400 ¥ 193 ¥ 966 ¥ 2,626 March 31, 2010 Thousands of U.S. Dollars Unrealized Gains Unrealized Losses Fair Value Cost Securities classified as available-for-sale—Equity securities $ 36,316 $ 5,456 $ 4,041 $ 37,730 Available-for-sale securities whose fair value was not readily determinable at March 31, 2009, were as follows. The similar information for 2010 is disclosed in Note 14. March 31, 2009 Available-for-sale—Equity securities Carrying Amount Millions of Yen ¥ 1,138 The information of the available-for-sale securities which were sold during the year ended March 31, 2010 was as follows: March 31, 2010 Millions of Yen Realized Gains Proceeds Realized Losses Available-for-sale—Equity securities ¥ 13 ¥ 4 ¥ 12 March 31, 2010 Thousands of U.S. Dollars Realized Gains Proceeds Realized Losses Available-for-sale—Equity securities $ 143 $ 44 $ 134 - 16 - CHIYODA CORPORATION ANNUAL REPORT 2010  Chiyoda Corporation and Consolidated Subsidiaries Notes to Consolidated Financial Statements Years Ended March 31, 2010 and 2009 6. INVESTMENTS IN AND ADVANCES TO UNCONSOLIDATED SUBSIDIARIES AND ASSOCIATED COMPANIES Investments in and advances to unconsolidated subsidiaries and associated companies at March 31, 2010 and 2009, were as follows: Investments Long-term receivables Total 7. LONG-TERM DEBT Millions of Yen 2010 2009 Thousands of U.S. Dollars 2010 ¥ 2,702 12 ¥ 3,190 13 $ 29,053 138 ¥ 2,714 ¥ 3,203 $ 29,192 Long-term debt at March 31, 2010 and 2009, consisted of the following: Millions of Yen 2010 2009 Thousands of U.S. Dollars 2010 Long-term loans from banks, maturing serially through 2012, with interest rates ranging from 2.4% to 5.7% at 2010 and 2009: Collateralized Uncollateralized Obligations under finance lease Total Less current portion ¥ 4 10,000 35 10,039 ¥ 22 10,000 37 10,059 $ 43 107,526 386 107,955 (17 ) (28 ) (192 ) Long-term debt, less current portion ¥ 10,022 ¥ 10,030 $ 107,763 Annual maturities of long-term debt, excluding finance leases (see Note 13), at March 31, 2010, were as follows: Year Ending March 31 2011 2012 Total Millions of Yen Thousands of U.S. Dollars ¥ 4 10,000 ¥ 10,004 $ 43 107,526 $ 107,569 Commitment-line contracts at March 31, 2010, were as follows: Commitment-line contracts ¥ 15,000 $ 161,290 Unused commitments ¥ 15,000 $ 161,290 Millions of Yen Thousands of U.S. Dollars  CHIYODA CORPORATION ANNUAL REPORT 2010 - 17 - The following assets were pledged as collateral for long-term debt at March 31, 2010: Land Buildings and structures—net of accumulated depreciation Total 8. RETIREMENT BENEFITS Millions of Yen Thousands of U.S. Dollars ¥ 381 449 ¥ 830 $ 4,098 4,828 $ 8,927 Employees of the Company are, under most circumstances, entitled to payments from the defined contribution pension plan and the defined benefit corporate pension plan upon retirement or termination. Employees of certain of the Company's consolidated subsidiaries are, under most circumstances, entitled to certain lump-sum severance payments and pension payments upon retirement or termination. Liability for retirement benefits includes retirement benefits to directors, officers and corporate auditors in the amount of ¥200 million ($2,158 thousand) and ¥681 million for the years ended March 31, 2010 and 2009, respectively. The retirement benefits to directors and corporate auditors are paid subject to the approval of the shareholders. As discussed in Note 2.m, the Company's outstanding balance of the retirement benefit allowance for directors, officers and corporate auditors amounted to ¥292 million is reclassified to non-current liabilities—other liabilities due to the termination effective June 23, 2009. The liability for employees' retirement benefits at March 31, 2010 and 2009, consisted of the following: Projected benefit obligation Fair value of plan assets Unrecognized transitional obligation Unrecognized actuarial loss Unrecognized prior service cost Prepaid pension cost Net accrued pension liabilities Millions of Yen 2010 2009 Thousands of U.S. Dollars 2010 ¥ 26,403 (18,886 ) (3,044 ) (3,395 ) 1,028 2,105 ¥ 26,682 (17,827 ) (3,661 ) (5,287 ) 1,204 1,110 496 $ 283,909 (203,082 ) (32,733 ) (36,514 ) 11,055 22,634 Liability for employees' retirement benefits ¥ 2,105 ¥ 1,606 $ 22,634 - 18 - CHIYODA CORPORATION ANNUAL REPORT 2010  Chiyoda Corporation and Consolidated Subsidiaries Notes to Consolidated Financial Statements Years Ended March 31, 2010 and 2009 The components of net periodic benefit costs for the years ended March 31, 2010 and 2009, were as follows: Service cost Interest cost Expected return on plan assets Amortization of transitional obligation Recognized actuarial loss Amortization of prior service cost Subtotal Payment to defined contribution pension trust Millions of Yen 2010 2009 Thousands of U.S. Dollars 2010 ¥ 736 369 (265 ) ¥ 1,027 381 (303 ) 608 845 (176 ) 2,119 246 610 610 (176 ) 2,149 237 $ 7,923 3,975 (2,854 ) 6,546 9,091 (1,895 ) 22,786 2,646 Net periodic benefit costs ¥ 2,365 ¥ 2,387 $ 25,433 Assumptions used for the years ended March 31, 2010 and 2009, are set forth as follows: Discount rate Expected rate of return on plan assets Recognition period of actuarial gain/loss Amortization period of transitional obligation Amortization period of prior service cost 9. EQUITY 2010 1.5% 1.6% 10 years 15 years 10 years 2009 1.5% 1.6% 10 years 15 years 10 years Japanese companies are subject to the Companies Act of Japan (the "Companies Act"). The significant provisions in the Companies Act that affect financial and accounting matters are summarized below: a. Dividends Under the Companies Act, companies can pay dividends at any time during the fiscal year in addition to the year-end dividend upon resolution at the shareholders meeting. For companies that meet certain criteria such as; (1) having the Board of Directors, (2) having independent auditors, (3) having the Board of Corporate Auditors, and (4) the term of service of the directors is prescribed as one year rather than two years of normal term by its articles of incorporation, the Board of Directors may declare dividends (except for dividends in kind) at any time during the fiscal year if the company has prescribed so in its articles of incorporation. However, the Company cannot do so because it does not meet all the above criteria. The Companies Act permits companies to distribute dividends-in-kind (non-cash assets) to shareholders subject to a certain limitation and additional requirements. Semiannual interim dividends may also be paid once a year upon resolution by the Board of Directors if the articles of incorporation of the company so stipulate. The Companies Act provides certain limitations on the amounts available for dividends or the purchase of treasury stock. The limitation is defined as the amount available for distribution to the shareholders, but the amount of net assets after dividends must be maintained at no less than ¥3 million.  CHIYODA CORPORATION ANNUAL REPORT 2010 - 19 - b. Increases/Decreases and Transfer of Common Stock, Reserve and Surplus The Companies Act requires that an amount equal to 10% of dividends must be appropriated as a legal reserve (a component of retained earnings) or as additional paid-in capital (a component of capital surplus) depending on the equity account charged upon the payment of such dividends until the total of aggregate amount of legal reserve and additional paid-in capital equals 25% of the common stock. Under the Companies Act, the total amount of additional paid-in capital and legal reserve may be reversed without limitation. The Companies Act also provides that common stock, legal reserve, additional paid-in capital, other capital surplus and retained earnings can be transferred among the accounts under certain conditions upon resolution of the shareholders. c. Treasury Stock and Treasury Stock Acquisition Rights The Companies Act also provides for companies to purchase treasury stock and dispose of such treasury stock by resolution of the Board of Directors. The amount of treasury stock purchased cannot exceed the amount available for distribution to the shareholders which is determined by specific formula. Under the Companies Act, stock acquisition rights are presented as a separate component of equity. The Companies Act also provides that companies can purchase both treasury stock acquisition rights and treasury stock. Such treasury stock acquisition rights are presented as a separate component of equity or deducted directly from stock acquisition rights. d. Issuance of New Ordinary Shares to a Third Party On April 30, 2008, the Company issued new ordinary shares to a third party based on the resolution of the Board of Directors meeting held on March 31, 2008. Details are as follows: (1) Allocated third party: (2) Number of shares issued: Ordinary shares, 67,080 thousand shares (3) Issue price: (4) Aggregate issue amount: ¥60,841 million Mitsubishi Corporation ¥907 per share The Company's common stock and capital surplus were increased by ¥30,454 million and ¥30,387 million, respectively. 10. STOCK OPTIONS The stock options outstanding as of March 31, 2010 were as follows: Stock Option Persons Granted Number of Options Granted Date of Grant Exercise Price Exercise Period 2002 Stock Option 8 directors 8 officers 623 employees 7,896,000 shares July 12, 2002 ¥232 $2.49 ) ( From July 1, 2004 to June 30, 2009 - 20 - CHIYODA CORPORATION ANNUAL REPORT 2010  Chiyoda Corporation and Consolidated Subsidiaries Notes to Consolidated Financial Statements Years Ended March 31, 2010 and 2009 The stock option activity was as follows: 2002 Stock Option (Shares) Year Ended March 31, 2009 Vested March 31, 2008—Outstanding Exercised March 31, 2009—Outstanding Year Ended March 31, 2010 Vested March 31, 2009—Outstanding Exercised Lapse March 31, 2010—Outstanding Exercise price Average stock price at exercise Fair value price at grant date 11. INCOME TAXES 66,000 (30,000) 36,000 36,000 (32,000) (4,000) ¥232 ¥768 The Company and its domestic subsidiaries are subject to Japanese national and local income taxes which, in the aggregate, resulted in a normal effective statutory tax rate of approximately 41% for the years ended March 31, 2010 and 2009. The tax effects of significant temporary differences and tax loss carryforwards which resulted in deferred tax assets and liabilities at March 31, 2010 and 2009, are as follows: Millions of Yen 2010 2009 Thousands of U.S. Dollars 2010 Deferred tax assets: Cost of revenue Allowance for employees' bonus Allowance for warranty costs for completed works Allowance for losses on construction contracts Deferred loss on derivatives under hedge accounting Retirement benefits Other Less valuation allowance ¥ 13,528 1,246 1,715 1,780 836 2,966 (874 ) ¥ 5,600 1,367 1,422 1,661 1,033 4,714 (1,278 ) $ 145,469 13,399 18,449 19,149 8,993 31,893 (9,404 ) Total 21,199 14,521 227,948 Deferred tax liabilities: Profit/loss in joint venture Other 3,785 145 2,992 316 40,704 1,565 Total 3,931 3,309 42,269 Net deferred tax assets ¥ 17,268 ¥ 11,212 $ 185,679  CHIYODA CORPORATION ANNUAL REPORT 2010 - 21 - Net deferred tax assets as of March 31, 2010 and 2009 were recorded in the accompanying consolidated balance sheets as follows: Millions of Yen 2009 2010 Thousands of U.S. Dollars 2010 Deferred tax assets—current assets Deferred tax assets—investments and other assets ¥ 15,523 1,745 ¥ 9,872 1,348 $ 166,914 18,765 A reconciliation between the normal effective statutory tax rate and the actual effective tax rate reflected in the accompanying consolidated statements of income for the years ended March 31, 2010 and 2009, is as follows: Normal effective statutory tax rate Expenses not deductible for income tax purposes Non-taxable dividend income Inhabitant taxes per capita levy Tax credit Temporary difference on change in tax act Increase in valuation allowance for deferred tax assets Equity in earnings of associated companies Lower income tax rates applicable to subsidiaries Lower tax basis of enterprise tax Actual effective tax rate 12. RESEARCH AND DEVELOPMENT COSTS 2010 41 % 4 (8) 1 13 (1) (6) (7) 37 % 2009 41 % 2 (1) (2) (5) 3 (1) (4) (1) 32 % Research and development costs charged to income were ¥1,741 million ($18,726 thousand) and ¥1,797 million for the years ended March 31, 2010 and 2009, respectively. 13. LEASES The Group leases certain machinery, computer equipment and other assets. Obligations under finance leases and future minimum payments under noncancelable operating leases were as follows: Millions of Yen 2010 Thousands of U.S. Dollars 2010 Finance Leases On Balance Off Balance Operating Leases Finance Leases On Balance Off Balance Operating Leases Due within one year Due after one year ¥ 13 22 ¥ 90 117 ¥ 132 1,424 $ 149 236 $ 973 1,260 $ 1,424 15,286 Total ¥ 35 ¥ 207 ¥ 1,554 $ 386 $ 2,233 $ 16,711 - 22 - CHIYODA CORPORATION ANNUAL REPORT 2010  Chiyoda Corporation and Consolidated Subsidiaries Notes to Consolidated Financial Statements Years Ended March 31, 2010 and 2009 Pro forma Information of Leased Property Whose Lease Inception Was before March 31, 2008 ASBJ Statement No. 13, "Accounting Standard for Lease Transactions" requires that all finance lease transactions should be capitalized to recognize lease assets and lease obligations in the balance sheet. However, the ASBJ Statement No. 13 permits leases without ownership transfer of the leased property to the lessee whose lease inception was before March 31, 2008 to be accounted for as operating lease transactions if certain "as if capitalized" information is disclosed in the note to the financial statements. The Company applied the ASBJ Statement No. 13 effective April 1, 2008 and accounted for such leases as operating lease transactions. Pro forma information of leased property whose lease inception was before March 31, 2008 such as acquisition cost, accumulated depreciation, obligations under finance leases, depreciation expense, interest expense and other information of finance leases that do not transfer ownership of the leased property to the lessee on an "as if capitalized" basis was as follows: Year Ended March 31, 2010 Buildings and Structures Millions of Yen Tools, Furniture and Fixtures Other Total Acquisition cost Accumulated depreciation Net leased property ¥ 67 19 ¥ 48 ¥ 388 254 ¥ 134 ¥ 77 51 ¥ 25 ¥ 533 325 ¥ 207 Thousands of U.S. Dollars Acquisition cost Accumulated depreciation $ 726 205 $ 4,182 2,741 Buildings and Structures Tools, Furniture and Fixtures Other $ 828 555 Total $ 5,736 3,503 Net leased property $ 520 $ 1,440 $ 272 $ 2,233 Obligations under finance leases: Due within one year Due after one year Total Millions of Yen Thousands of U.S. Dollars ¥ 90 117 ¥ 207 $ 973 1,260 $ 2,233 0 CHIYODA CORPORATION ANNUAL REPORT 2010 - 23 - Year Ended March 31, 2009 Buildings and Structures Millions of Yen Tools, Furniture and Fixtures Other Total Acquisition cost Accumulated depreciation Net leased property ¥ 67 12 ¥ 55 ¥ 475 244 ¥ 230 ¥ 77 43 ¥ 33 ¥ 619 299 ¥ 319 Obligations under finance leases: Due within one year Due after one year Total Millions of Yen ¥ 110 209 ¥ 319 Depreciation expense as lessee, which is not reflected in the accompanying consolidated statements of income, computed by the straight-line method was ¥111 million ($1,193 thousand) and ¥138 million for the years ended March 31, 2010 and 2009, respectively. The amounts of obligations, acquisition cost and depreciation under finance leases include the imputed interest income portion and interest expense portion, respectively. The minimum rental commitments under noncancelable operating leases at March 31, 2009 were as follows: Year Ended March 31, 2009 Due within one year Due after one year Total Millions of Yen ¥ 144 1,545 ¥ 1,690 14. FINANCIAL INSTRUMENTS AND RELATED DISCLOSURES On March 10, 2008, the ASBJ revised ASBJ Statement No. 10 "Accounting Standard for Financial Instruments" and issued ASBJ Guidance No. 19 "Guidance on Accounting Standard for Financial Instruments and Related Disclosures." This accounting standard and the guidance are applicable to financial instruments and related disclosures at the end of the fiscal years ending on or after March 31, 2010 with early adoption permitted from the beginning of the fiscal years ending before March 31, 2010. The Group applied the revised accounting standard and the new guidance effective March 31, 2010. - 24 - CHIYODA CORPORATION ANNUAL REPORT 2010 1 Chiyoda Corporation and Consolidated Subsidiaries Notes to Consolidated Financial Statements Years Ended March 31, 2010 and 2009 (1) Group Policy for Financial Instruments The Group uses financial instruments for cash surpluses, if any, invested in low risk financial assets such as certificate of deposits and deposits at call. For operating capital, the Group uses bank loans. Derivatives are used, not for speculative purposes, but to manage exposure to the market risk of fluctuation in foreign currency exchange rates. (2) Nature and Extent of Risks Arising from Financial Instruments Receivables such as trade notes and trade accounts are exposed to customer credit risk. Although receivables in foreign currencies are exposed to the market risk of fluctuation in foreign currency exchange rates, the position, net of payables in foreign currencies, is hedged by using foreign currency forward contracts. Cash equivalents include certificate of deposits which mature shortly and are used for cash surpluses. Short-term investments include deposits at call which will mature after three month of the date of acquisition. Both certificate of deposits and deposits at call are exposed to default risk of its issuing financial institution. Investment securities are equity securities related to the business which the Group operates. Marketable securities are exposed to the risk of fluctuations in stock prices. Payment terms of payables, such as trade notes and trade accounts, are mostly less than one year. Although payables in foreign currencies are exposed to the market risk of fluctuation in foreign currency exchange rates, those risks are netted against the balance of receivables denominated in the same foreign currency as noted above. Bank loans are used for operating capital, and are exposed to the market risks from changes in interest rates. Derivatives are foreign currency forward contracts, which are entered to manage exposure to market risks from changes in foreign currency exchange rates of receivables and payables. Please see Notes 2.s and 15 for more detail about derivatives. (3) Risk Management for Financial Instruments Credit risk management Credit risk is the risk of economic loss arising from a counterparty's failure to repay or service debt according to the contractual terms. The Group manages its credit risk from receivables on the basis of internal guidelines, which include monitoring of payment term and balances of major customers to identify the default risk of customers in early stage. Certificate of deposits and deposits at call are exposed to insignificant default risk because transactions are limited to major financial institutions. With respect to foreign currency forward contract, the Group limits the counterparty to those derivatives to major financial institutions for losses arising from credit risk.  CHIYODA CORPORATION ANNUAL REPORT 2010 - 25 - Market risk management (foreign exchange risk) Foreign currency trade receivables and payables are exposed to market risk resulting from fluctuations in foreign currency exchange rates. Such foreign exchange risk is hedged principally with foreign currency forward contracts. Foreign currency forward contracts are controlled under internal guidelines. The position related to particular construction contracts is identified and is reviewed monthly. Reconciliation of the transaction and balances with customers' confirmation reply is made, and the transaction to deal and cancel of foreign currency forward contracts are executed and accounted for under internal guidelines. Marketable investment securities are managed by monitoring market values and financial position of issuers on a regular basis. The Group assesses the stock price risk quantitatively so as to account for significant declines in stock market as impairment losses. Liquidity risk management Liquidity risk comprises the risk that the Group cannot meet its contractual obligations in full on maturity dates. The Group manages its liquidity risk by holding adequate volumes of liquid assets along with timely adequate financial planning. (4) Fair Values of Financial Instruments Fair values of financial instruments are based on quoted price in active markets. If quoted price is not available, other rational valuation techniques are used instead. Also please see Note 15 for the detail of fair value for derivatives. (a) Fair values of financial instruments March 31, 2010 Cash and cash equivalents Short-term investments Notes and accounts receivable Costs and estimated earnings on long-term construction contracts Jointly controlled assets of joint venture Investment securities Carrying Amount ¥ 139,790 53 39,864 11,454 69,917 3,508 Millions of Yen Fair Value Unrealized Gain (Loss) ¥ 139,790 53 39,864 11,454 69,917 3,508 Total Notes and accounts payable—trade Income taxes payable Long-term debt Total ¥ 264,589 ¥ 264,589 ¥ 89,523 4,675 10,004 ¥ 89,523 4,675 10,004 ¥ 104,202 ¥ 104,202 - 26 - CHIYODA CORPORATION ANNUAL REPORT 2010  Chiyoda Corporation and Consolidated Subsidiaries Notes to Consolidated Financial Statements Years Ended March 31, 2010 and 2009 Thousands of U.S. Dollars March 31, 2010 Carrying Amount Cash and cash equivalents Short-term investments Notes and accounts receivable Costs and estimated earnings on long-term construction contracts Jointly controlled assets of joint venture Investment securities $ 1,503,125 577 428,647 123,166 751,805 37,730 Unrealized Gain (Loss) Fair Value $ 1,503,125 577 428,647 123,166 751,805 37,730 Total $ 2,845,053 $ 2,845,053 Notes and accounts payable—trade Income taxes payable Long-term debt $ 962,621 50,270 107,569 $ 962,621 50,270 107,569 Total $ 1,120,461 $ 1,120,461 Cash and Cash Equivalents, Short-Term Investments, Notes and Accounts Receivable, and Costs and Estimated Earnings on Long-Term Construction Contracts The carrying values of accounts mentioned above approximate fair value because of their short maturities. Jointly Controlled Assets of Joint Venture The jointly controlled assets of joint venture are jointly controlled cash recognized based on the Company's share on the venture. The carrying values of jointly controlled assets of joint venture are approximate fair value because of their short maturities. Investment Securities The fair values of investment securities are measured at the quoted market price of the stock exchange for the equity instruments. The information of the fair value for investment securities by classification is included in Note 5. Above schedules do not include investment securities whose fair value cannot be reliably determined. Notes and Accounts Payable—Trade and Income Taxes Payable The carrying values of accounts mentioned above approximate fair value because of their short maturities. Long-Term Debt (Bank Loans) The carrying amounts of long-term bank loans approximate fair value, because terms are based on floating rate and the Group's credit standing is deemed not to be changed since it has borrowed. Above schedules include current portion of long-term bank loans, excluding obligations under finance lease.  CHIYODA CORPORATION ANNUAL REPORT 2010 - 27 - Derivatives The information of the fair value for derivatives is included in Note 15. (b) Financial instruments whose fair values cannot be reliably determined March 31, 2010 Carrying Amount Millions of Yen Thousands of U.S. Dollars Investment securities that do not have a quoted market price in an active market Investments in equity instruments that do not have a quoted market price in an active market Investments in unconsolidated subsidiaries and associated companies that do not have a quoted market price in an active market ¥ 1,641 $ 17,654 2 31 2,702 29,053 (c) Maturity analysis for financial assets and securities with contractual maturities March 31, 2010 Cash and cash equivalents Short-term investments Notes and accounts receivable, and costs and estimated earnings on long-term construction contacts Jointly controlled assets of joint venture Millions of Yen Due after 1 Year through 5 Years Due after 5 Years through 10 Years Due after 10 Years Due in 1 Year or Less ¥ 139,790 53 50,932 ¥ 341 ¥ 45 69,917 Total ¥ 260,692 ¥ 341 ¥ 45 March 31, 2010 Cash and cash equivalents Short-term investments Notes and accounts receivable, and costs and estimated earnings on long-term construction contacts Jointly controlled assets of joint venture Due in 1 Year or Less Thousands of U.S. Dollars Due after 5 Years through 10 Years Due after 1 Year through 5 Years Due after 10 Years $ 1,503,125 577 547,657 $ 3,667 $ 489 751,805 Total $ 2,803,166 $ 3,668 $ 489 - 28 - CHIYODA CORPORATION ANNUAL REPORT 2010  Chiyoda Corporation and Consolidated Subsidiaries Notes to Consolidated Financial Statements Years Ended March 31, 2010 and 2009 Please see Note 7 for annual maturities of long-term debt and Note 13 for obligations under finance leases, respectively. 15. DERIVATIVES As noted in Note 14, the Group applied ASBJ Statement No. 10 "Accounting Standard for Financial Instruments" and ASBJ Guidance No. 19 "Guidance on Accounting Standard for Financial Instruments and Related Disclosures." The accounting standard and the guidance are applicable to financial instruments and related disclosures at the end of the fiscal years ending on or after March 31, 2010; therefore, the required information is disclosed only for 2010. Derivative Transactions to Which Hedge Accounting Is Not Applied at March 31, 2010 March 31, 2010 Foreign currency forward contracts: Selling U.S.$/buying yen Selling Euro/buying yen Selling GBP/buying yen Buying U.S.$/selling yen Buying Euro/selling yen Total March 31, 2010 Foreign currency forward contracts: Selling U.S.$/buying yen Selling Euro/buying yen Selling GBP/buying yen Buying U.S.$/selling yen Buying Euro/selling yen Total Millions of Yen Contract Amount Due after One Year Fair Value (Loss) Unrealized Gain (Loss) ¥ (74 ) (1 ) ¥ (74 ) (1 ) ¥ (77 ) ¥ (77 ) Thousands of U.S. Dollars Contract Amount Due after One Year Fair Value (Loss) Unrealized Gain (Loss) $ (804 ) (14 ) (1 ) (6 ) (3 ) $ (804 ) (14 ) (1 ) (6 ) (3 ) $ (831 ) $ (831 ) Contract Amount ¥ 24,754 2,236 278 2,599 6 ¥ 29,876 Contract Amount $ 266,179 24,050 2,997 27,953 73 $ 321,254  CHIYODA CORPORATION ANNUAL REPORT 2010 - 29 - Derivative Transactions to Which Hedge Accounting Is Applied at March 31, 2010 March 31, 2010 Foreign currency forward contracts—Accounted for under deferred hedge accounting method: Selling U.S.$/buying yen Selling Euro/buying yen Buying U.S.$/selling yen Buying Euro/selling yen Buying GBP/selling yen Buying Euro/selling U.S.$ Total Other*: Selling U.S.$/buying yen Buying U.S.$/selling yen Buying Euro/selling yen Buying GBP/selling yen Total March 31, 2010 Foreign currency forward contracts—Accounted for under deferred hedge accounting method: Selling U.S.$/buying yen Selling Euro/buying yen Buying U.S.$/selling yen Buying Euro/selling yen Buying GBP/selling yen Buying Euro/selling U.S.$ Total Other*: Selling U.S.$/buying yen Buying U.S.$/selling yen Buying Euro/selling yen Buying GBP/selling yen Total Millions of Yen Hedged Item Amount Contract Contract Amount Due after One Year Fair Value (Loss) Foreign currency forecasted transaction ¥ 11,833 1,016 4,540 1,553 114 2,934 ¥ 3,361 240 2,292 ¥ (216 ) 29 150 (61 ) (8 ) (161 ) ¥ 21,993 ¥ 5,893 ¥ (268 ) Receivables ¥ Payables 76 440 424 4 ¥ 945 Thousands of U.S. Dollars Hedged Item Amount Contract Contract Amount Due after One Year Fair Value (Loss) Foreign currency forecasted transaction $ 127,246 10,928 48,825 16,703 1,229 31,555 $ 36,141 $ (2,325 ) 2,581 24,645 317 1,615 (665 ) (92 ) (1,740 ) $ 236,487 $ 63,369 $ (2,890 ) Receivables $ Payables 819 4,740 4,563 46 $ 10,170 - 30 - CHIYODA CORPORATION ANNUAL REPORT 2010  Chiyoda Corporation and Consolidated Subsidiaries Notes to Consolidated Financial Statements Years Ended March 31, 2010 and 2009 * Foreign currency forward contracts, which are applied to the foreign currency translation at the contract rate of the assets and liabilities on construction contracts denominated in foreign currencies Derivative Transactions to Which Hedge Accounting Is Not Applied at March 31, 2009 March 31, 2009 Buying: Euro GBP Selling: U.S.$ Euro Contract Amount Millions of Yen Fair Value Unrealized Loss ¥ 19 21 14,990 1,331 ¥ 18 14 15,022 1,332 ¥ (6 ) (31 ) (1 ) The fair value of derivative transactions is measured at the quoted price obtained from the financial institution. The fair value of derivatives accounted for by matching method are included in note and account receivables/payables because they are accounted together with their hedged items. The contract or notional amounts of derivatives which are shown in the above table do not represent the amounts exchanged by the parties and do not measure the Group's exposure to credit or market risk. 16. CONTINGENT LIABILITIES At March 31, 2010, the Group had the following contingent liabilities: Millions of Yen Thousands of U.S. Dollars Guarantees on employees' housing loans Performance bond for an unconsolidated subsidiary ¥ 405 2,586 $ 4,362 27,814 17. NET INCOME PER SHARE Reconciliation of the differences between basic and diluted net income per share ("EPS") for the years ended March 31, 2010 and 2009 is as follows: Year Ended March 31, 2010 Millions of Yen Net Income Thousands of Shares Weighted- Average Shares Yen U.S. Dollars EPS Basic EPS—Net income available to common shareholders Effect of dilutive securities—Stock options ¥ 2,953 259,301 4 ¥ 11.39 $ 0.12 Diluted EPS—Net income for computation ¥ 2,953 259,306 ¥ 11.39 $ 0.12  CHIYODA CORPORATION ANNUAL REPORT 2010 - 31 - Year Ended March 31, 2009 Basic EPS—Net income available to common shareholders Year Ended March 31, 2009 Effect of dilutive securities—Stock options 18. SUBSEQUENT EVENT Basic EPS—Net income available to common shareholders Diluted EPS—Net income for computation Effect of dilutive securities—Stock options 18. SUBSEQUENT EVENT Diluted EPS—Net income for computation 18. SUBSEQUENT EVENT 18. SUBSEQUENT EVENT 18. SUBSEQUENT EVENT 18. SUBSEQUENT EVENT 18. SUBSEQUENT EVENT 18. SUBSEQUENT EVENT 18. SUBSEQUENT EVENT 19. SEGMENT INFORMATION 18. SUBSEQUENT EVENT 19. SEGMENT INFORMATION 19. SEGMENT INFORMATION was as follows: Year-end cash dividends, ¥3.50 ($0.04) per share was as follows: Year-end cash dividends, ¥3.50 ($0.04) per share 19. SEGMENT INFORMATION 19. SEGMENT INFORMATION 19. SEGMENT INFORMATION 19. SEGMENT INFORMATION 19. SEGMENT INFORMATION 19. SEGMENT INFORMATION was as follows: (1) Geographical Segments was as follows: (1) Geographical Segments Year Ended March 31, 2010 Revenue: Year Ended March 31, 2010 Sales to customers Interarea transfer Revenue: Sales to customers Total sales Interarea transfer Operating expenses Total sales Operating income Operating expenses Total assets Operating income Total assets was as follows: was as follows: was as follows: was as follows: was as follows: was as follows: was as follows: Revenue: (1) Geographical Segments (1) Geographical Segments (1) Geographical Segments (1) Geographical Segments (1) Geographical Segments Japan Revenue: Asia Japan ¥ 303,372 922 Year Ended March 31, 2010 Year Ended March 31, 2010 Year Ended March 31, 2010 Revenue: Revenue: Revenue: ¥ 303,372 304,295 Revenue: Revenue: Revenue: 922 Revenue: Sales to customers Sales to customers Sales to customers Sales to customers Sales to customers Interarea transfer Interarea transfer Interarea transfer Interarea transfer Interarea transfer 303,560 Total assets 304,295 Total sales Total sales Total sales 303,560 734 Total sales Total sales ¥ ¥ Year Ended March 31, 2009 Year Ended March 31, 2009 Basic EPS—Net income available to common shareholders Effect of dilutive securities—Stock options Thousands of Shares Weighted-Average Millions Thousands Thousands Millions Net Income Shares 254,000 ¥ 25.58 254,000 Basic EPS—Net income available to common shareholders of Yen of Shares Yen of Shares of Yen Millions Thousands Effect of dilutive securities—Stock options 42 42 Weighted-Average Weighted-Average ¥ 6,498 Basic EPS—Net income available to common shareholders 254,000 of Yen of Shares Thousands Millions Year Ended March 31, 2009 Shares Net Income EPS Net Income Shares Net Income Effect of dilutive securities—Stock options Yen of Shares of Yen Weighted-Average Diluted EPS—Net income for computation 254,043 ¥ 25.58 ¥ 25.58 254,043 ¥ 6,498 Diluted EPS—Net income for computation ¥ 6,498 Millions Thousands Millions Thousands Thousands Millions Thousands Millions Thousands Millions Thousands Thousands Thousands Millions Millions Millions Net Income Year Ended March 31, 2009 Shares Weighted-Average Year Ended March 31, 2009 Basic EPS—Net income available to common shareholders Basic EPS—Net income available to common shareholders 254,000 ¥ 6,498 254,000 ¥ 6,498 ¥ 25.58 Yen of Yen of Shares ¥ 25.58 ¥ 6,498 254,000 of Yen of Shares Yen of Shares of Shares of Yen of Yen of Yen Yen of Shares of Yen Yen of Shares of Yen of Yen of Shares Yen Yen of Shares EPS Shares ¥ 6,498 Diluted EPS—Net income for computation 254,043 Weighted-Average 18. SUBSEQUENT EVENT Effect of dilutive securities—Stock options 42 42 Effect of dilutive securities—Stock options 42 Weighted-Average Weighted-Average Weighted-Average Weighted-Average Weighted-Average Weighted-Average Weighted-Average Basic EPS—Net income available to common shareholders ¥ 6,498 254,000 Basic EPS—Net income available to common shareholders EPS Shares Net Income Year Ended March 31, 2009 Shares Shares Net Income Net Income EPS Shares Year Ended March 31, 2009 EPS Shares Year Ended March 31, 2009 Shares Net Income Shares Shares Net Income ¥ 25.58 254,000 Effect of dilutive securities—Stock options Effect of dilutive securities—Stock options The following appropriation of retained earnings at March 31, 2010, is scheduled for approval at the Company's shareholders meeting on June 24, 2010: The following appropriation of retained earnings at March 31, 2010, is scheduled for approval at the Company's shareholders meeting on June 24, 2010: Diluted EPS—Net income for computation 254,043 ¥ 6,498 ¥ 6,498 ¥ 6,498 254,043 42 Basic EPS—Net income available to common shareholders ¥ 25.58 254,000 Basic EPS—Net income available to common shareholders 254,000 Basic EPS—Net income available to common shareholders ¥ 25.58 ¥ 25.58 Basic EPS—Net income available to common shareholders ¥ 25.58 254,000 ¥ 6,498 Basic EPS—Net income available to common shareholders 254,000 ¥ 6,498 254,000 ¥ 6,498 Basic EPS—Net income available to common shareholders ¥ 6,498 The following appropriation of retained earnings at March 31, 2010, is scheduled for approval at the Company's shareholders meeting on June 24, 2010: Diluted EPS—Net income for computation 254,043 42 Effect of dilutive securities—Stock options 18. SUBSEQUENT EVENT Effect of dilutive securities—Stock options Effect of dilutive securities—Stock options 42 Effect of dilutive securities—Stock options 42 42 Effect of dilutive securities—Stock options Effect of dilutive securities—Stock options ¥ 25.58 ¥ 25.58 Basic EPS—Net income available to common shareholders Effect of dilutive securities—Stock options ¥ 25.58 254,000 ¥ 25.58 Thousands of Diluted EPS—Net income for computation 42 U.S. Dollars EPS Thousands ¥ 25.58 of Shares Weighted-Average Shares Basic EPS—Net income available to common shareholders Effect of dilutive securities—Stock options Net Income Diluted EPS—Net income for computation Net Income Millions ¥ 6,498 of Yen Year Ended March 31, 2009 18. SUBSEQUENT EVENT ¥ 6,498 ¥ 6,498 Thousands of U.S. Dollars Year Ended March 31, 2009 ¥ 6,498 254,000 254,000 ¥ 6,498 42 42 Net Income EPS ¥ 25.58 Year Ended March 31, 2009 Year Ended March 31, 2009 Year Ended March 31, 2009 Year Ended March 31, 2009 Year Ended March 31, 2009 Millions of Yen Millions of Yen EPS 254,043 Net Income Net Income Net Income 254,043 ¥ 6,498 ¥ 6,498 ¥ 6,498 ¥ 6,498 ¥ 25.58 Yen Yen EPS EPS EPS Millions of Yen Millions of Yen Thousands of Shares Weighted-Average Shares Thousands of Shares Weighted-Average Shares Yen Millions of Yen EPS Yen The following appropriation of retained earnings at March 31, 2010, is scheduled for approval at the Company's shareholders meeting on June 24, 2010: Diluted EPS—Net income for computation The following appropriation of retained earnings at March 31, 2010, is scheduled for approval at the Company's shareholders meeting on June 24, 2010: 254,043 Diluted EPS—Net income for computation Diluted EPS—Net income for computation ¥ 6,498 Millions of Yen Year-end cash dividends, ¥3.50 ($0.04) per share 18. SUBSEQUENT EVENT The following appropriation of retained earnings at March 31, 2010, is scheduled for approval at the Company's shareholders meeting on June 24, 2010: 254,043 ¥ 6,498 Year-end cash dividends, ¥3.50 ($0.04) per share 18. SUBSEQUENT EVENT Diluted EPS—Net income for computation Diluted EPS—Net income for computation Diluted EPS—Net income for computation Diluted EPS—Net income for computation Diluted EPS—Net income for computation ¥ 25.58 254,043 ¥ 907 ¥ 25.58 $ 9,755 ¥ 25.58 ¥ 907 ¥ 25.58 254,043 254,043 254,043 ¥ 6,498 254,043 254,043 ¥ 6,498 ¥ 6,498 ¥ 6,498 ¥ 6,498 ¥ 6,498 ¥ 25.58 ¥ 25.58 ¥ 25.58 The following appropriation of retained earnings at March 31, 2010, is scheduled for approval at the Company's shareholders meeting on June 24, 2010: 18. SUBSEQUENT EVENT 19. SEGMENT INFORMATION 18. SUBSEQUENT EVENT Year-end cash dividends, ¥3.50 ($0.04) per share Millions of Yen The following appropriation of retained earnings at March 31, 2010, is scheduled for approval at the Company's shareholders meeting on June 24, 2010: Millions of Yen Millions of Yen The following appropriation of retained earnings at March 31, 2010, is scheduled for approval at the Company's shareholders meeting on June 24, 2010: The following appropriation of retained earnings at March 31, 2010, is scheduled for approval at the Company's shareholders meeting on June 24, 2010: $ 9,755 The following appropriation of retained earnings at March 31, 2010, is scheduled for approval at the Company's shareholders meeting on June 24, 2010: Thousands of $ 9,755 U.S. Dollars Information about geographical segments and sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2010 and 2009, was as follows: The following appropriation of retained earnings at March 31, 2010, is scheduled for approval at the Company's shareholders meeting on June 24, 2010: ¥ 907 Millions of Yen The following appropriation of retained earnings at March 31, 2010, is scheduled for approval at the Company's shareholders meeting on June 24, 2010: Year-end cash dividends, ¥3.50 ($0.04) per share Information about geographical segments and sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2010 and 2009, The following appropriation of retained earnings at March 31, 2010, is scheduled for approval at the Company's shareholders meeting on June 24, 2010: The following appropriation of retained earnings at March 31, 2010, is scheduled for approval at the Company's shareholders meeting on June 24, 2010: Year-end cash dividends, ¥3.50 ($0.04) per share 19. SEGMENT INFORMATION Millions of Yen $ 9,755 ¥ 907 ¥ 907 Thousands of U.S. Dollars $ 9,755 Thousands of U.S. Dollars ¥ 907 Thousands of U.S. Dollars The following appropriation of retained earnings at March 31, 2010, is scheduled for approval at the Company's shareholders meeting on June 24, 2010: The following appropriation of retained earnings at March 31, 2010, is scheduled for approval at the Company's shareholders meeting on June 24, 2010: Information about geographical segments and sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2010 and 2009, 19. SEGMENT INFORMATION 19. SEGMENT INFORMATION (1) Geographical Segments (1) Geographical Segments Information about geographical segments and sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2010 and 2009, ¥ 907 Thousands of Information about geographical segments and sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2010 and 2009, Thousands of Thousands of U.S. Dollars was as follows: U.S. Dollars Millions of Yen U.S. Dollars 19. SEGMENT INFORMATION Information about geographical segments and sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2010 and 2009, Year-end cash dividends, ¥3.50 ($0.04) per share was as follows: $ 9,755 ¥ 907 Year-end cash dividends, ¥3.50 ($0.04) per share (1) Geographical Segments $ 9,755 Information about geographical segments and sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2010 and 2009, 19. SEGMENT INFORMATION was as follows: ¥ 907 Information about geographical segments and sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2010 and 2009, was as follows: Thousands of Thousands of Year-end cash dividends, ¥3.50 ($0.04) per share U.S. Dollars Millions of Yen Millions of Yen U.S. Dollars Millions of Yen 19. SEGMENT INFORMATION Year-end cash dividends, ¥3.50 ($0.04) per share $ 9,755 ¥ 907 $ 9,755 ¥ 907 Year-end cash dividends, ¥3.50 ($0.04) per share Millions of Yen Year-end cash dividends, ¥3.50 ($0.04) per share Year-end cash dividends, ¥3.50 ($0.04) per share Year-end cash dividends, ¥3.50 ($0.04) per share Year-end cash dividends, ¥3.50 ($0.04) per share ¥ 907 Eliminations (Corporate) Year-end cash dividends, ¥3.50 ($0.04) per share Eliminations Millions of Yen (Corporate) Thousands of U.S. Dollars Thousands of U.S. Dollars Year Ended March 31, 2010 Year Ended March 31, 2010 $ 9,755 $ 9,755 ¥ 907 Millions of Yen 19. SEGMENT INFORMATION Millions of Yen Millions of Yen Millions of Yen $ 9,755 Millions of Yen Subtotal Subtotal $ 9,755 ¥ 907 ¥ 907 ¥ 907 Other Other Japan Japan Asia Asia Information about geographical segments and sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2010 and 2009, (1) Geographical Segments (1) Geographical Segments (1) Geographical Segments Year Ended March 31, 2010 Millions of Yen Revenue: Sales to customers Interarea transfer Information about geographical segments and sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2010 and 2009, Information about geographical segments and sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2010 and 2009, Information about geographical segments and sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2010 and 2009, Information about geographical segments and sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2010 and 2009, Information about geographical segments and sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2010 and 2009, Information about geographical segments and sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2010 and 2009, Other Millions of Yen Eliminations ¥ (3,956 ) (Corporate) ¥ 1,026 35 (3,956 ) Other Information about geographical segments and sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2010 and 2009, Sales to customers Interarea transfer Year Ended March 31, 2010 Asia (1) Geographical Segments Information about geographical segments and sales to foreign customers of the Company and consolidated subsidiaries for the years ended March 31, 2010 and 2009, Japan (1) Geographical Segments was as follows: ¥ 1,026 ¥ 312,985 Revenue: 3,956 35 Subtotal Other ¥ 303,372 Sales to customers ¥ 8,586 Interarea transfer 2,998 922 11,585 304,295 1,061 316,942 1,061 Year Ended March 31, 2010 Asia Japan Eliminations Year Ended March 31, 2010 Revenue: Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Consolidated (Corporate) Other Sales to customers ¥ 303,372 ¥ 8,586 ¥ 303,372 ¥ 1,026 ¥ 312,985 ¥ 8,586 ¥ 312,985 ¥ 1,026 ¥ 312,985 ¥ 312,985 ¥ 1,026 Eliminations Eliminations Eliminations Eliminations Eliminations Eliminations Eliminations Total sales 1,061 11,585 304,295 1,059 1,059 10,620 303,560 10,620 303,560 315,240 (3,956 ) (3,956 ) 315,240 Revenue: Revenue: Interarea transfer 922 2,998 922 3,956 3,956 35 ¥ (3,956 ) 35 2,998 ¥ (3,956 ) 3,956 35 Other Asia Japan Consolidated (Corporate) Subtotal Year Ended March 31, 2010 Other Asia Japan Consolidated (Corporate) Subtotal Other Asia Japan Consolidated (Corporate) Subtotal Other Other Asia Japan Consolidated (Corporate) Subtotal Other Asia Japan Other Asia Japan Asia Japan Asia Japan Consolidated (Corporate) Subtotal Consolidated (Corporate) Subtotal (Corporate) Subtotal Other Sales to customers ¥ 1,026 ¥ 8,586 ¥ 303,372 Sales to customers 303,560 Operating expenses 1,059 10,620 ¥ 1,702 ¥ ¥ 734 ¥ ¥ ¥ 734 ¥ 965 2 1,702 2 ¥ Interarea transfer 35 2,998 922 ¥ 312,985 ¥ 312,985 Interarea transfer Total sales 304,295 11,585 304,295 316,942 (3,956 ) 11,585 316,942 1,061 312,985 316,942 (3,956 ) Revenue: ¥ (3,956 ) 3,956 ¥ 8,586 ¥ 1,026 ¥ 303,372 ¥ 312,985 ¥ 312,985 Sales to customers ¥ 1,026 ¥ 303,372 ¥ 8,586 ¥ 8,586 ¥ 1,026 ¥ 312,985 ¥ 312,985 ¥ 1,026 ¥ 8,586 ¥ 303,372 ¥ 312,985 ¥ 303,372 ¥ 312,985 ¥ 312,985 ¥ 1,026 ¥ 8,586 ¥ 8,586 ¥ 303,372 ¥ 312,985 ¥ 312,985 ¥ 1,026 ¥ 303,372 ¥ 8,586 ¥ 303,372 ¥ 303,372 ¥ 1,026 ¥ 8,586 ¥ 312,985 ¥ 1,026 ¥ 312,985 Operating income ¥ ¥ ¥ 734 2 965 Total sales 1,061 304,295 11,585 Total sales ¥ 9,413 ¥ 319,561 ¥ 9,413 ¥ 319,561 ¥ (2,572 ) ¥ 1,772 ¥ 1,772 ¥ 330,747 303,560 303,560 10,620 1,059 1,059 315,240 (3,956 ) 10,620 315,240 (3,956 ) 311,283 315,240 922 2,998 35 3,956 ¥ (3,956 ) Interarea transfer 35 922 2,998 35 922 ¥ (3,956 ) 3,956 3,956 35 2,998 922 ¥ (3,956 ) 3,956 35 2,998 922 ¥ (3,956 ) 2,998 ¥ (3,956 ) 3,956 35 2,998 922 35 2,998 922 922 2,998 3,956 35 3,956 312,985 (3,956 ) 316,942 ¥ 319,561 Total assets ¥ 9,413 Operating expenses 303,560 10,620 Operating expenses ¥ 965 ¥ ¥ ¥ 1,702 1,702 1,702 ¥ ¥ 1,061 304,295 (3,956 ) 11,585 304,295 Total sales 1,061 (3,956 ) 316,942 1,061 11,585 304,295 (3,956 ) 316,942 304,295 11,585 316,942 311,283 Year Ended March 31, 2010 Operating income Operating income ¥ 8,586 Total sales 11,585 2,998 Sales to customers Total assets Operating expenses 10,620 Interarea transfer 11,585 Operating income Total sales 10,620 Sales to customers ¥ 8,586 Operating expenses Interarea transfer 2,998 Year Ended March 31, 2010 Year Ended March 31, 2010 Sales to customers Interarea transfer ¥ 1,772 1,059 ¥ 1,702 312,985 1,061 312,985 (3,956 ) 312,985 312,985 ¥ 303,372 Eliminations 922 Japan (Corporate) ¥ 1,026 1,061 35 1,059 Year Ended March 31, 2010 Year Ended March 31, 2010 734 11,585 11,585 304,295 (3,956 ) (1) Geographical Segments (1) Geographical Segments ¥ 312,985 3,956 Other 1,061 ¥ 1,059 965 316,942 (3,956 ) ¥ 303,372 922 ¥ 8,586 2,998 Asia ¥ 2 316,942 1,061 ¥ 1,026 35 Asia ¥ 11,585 11,585 304,295 Operating expenses Operating expenses ¥ 8,586 2,998 Consolidated Operating income 965 Total sales ¥ 316,942 ¥ 312,985 ¥ (2,572 ) ¥ 330,747 ¥ (3,956 ) Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen Millions of Yen 2 304,295 2 (3,956 ) Total sales Total sales 734 1,061 316,942 316,942 1,061 304,295 312,985 ¥ (3,956 ) (3,956 ) ¥ (3,956 ) (3,956 ) Subtotal Subtotal Subtotal 11,585 11,585 1,061 1,061 Other Japan Asia 965 Operating expenses Operating expenses Operating expenses Operating expenses Operating expenses Operating expenses ¥ 319,561 Total assets Operating expenses ¥ 9,413 965 ¥ 734 ¥ Total assets ¥ 1,772 2 ¥ Operating income Operating income Operating income Operating income Operating income Operating income Operating income ¥ 9,413 ¥ 319,561 ¥ 1,772 Total assets Total assets Total assets Total assets Total assets Total assets Total assets 303,560 304,295 315,240 Operating income 303,560 ¥ 330,747 Operating expenses 303,560 303,560 1,702 ¥ Total assets ¥ Operating income 734 734 734 ¥ ¥ ¥ 330,747 ¥ ¥ 734 ¥ ¥ 734 ¥ 965 ¥ 734 ¥ 965 ¥ 965 ¥ 965 ¥ 965 ¥ ¥ 734 ¥ (2,572 ) ¥ 9,413 1,059 10,620 1,059 ¥ 1,059 ¥ 319,561 ¥ 328,174 1,059 10,620 1,702 ¥ 2 2 ¥ 965 ¥ 965 ¥ 2 ¥ ¥ ¥ 328,174 2 303,560 10,620 10,620 303,560 ¥ 319,561 10,620 ¥ (2,572 ) 303,560 10,620 10,620 1,059 ¥ 734 Operating income 315,240 ¥ 9,413 ¥ 1,772 303,560 315,240 315,240 315,240 1,059 1,059 ¥ 965 (3,956 ) ¥ 1,772 ¥ 330,747 10,620 (3,956 ) (3,956 ) 315,240 (3,956 ) 315,240 ¥ 2 311,283 ¥ 330,747 ¥ (2,572 ) 1,059 311,283 311,283 (3,956 ) 311,283 (3,956 ) (3,956 ) 311,283 315,240 ¥ 319,561 Total assets ¥ 734 ¥ 1,702 ¥ 1,702 1,702 ¥ ¥ 2 ¥ 2 1,702 1,702 ¥ 2 ¥ 9,413 965 ¥ 1,702 ¥ ¥ 1,702 ¥ 1,772 ¥ ¥ 2 1,702 1,702 ¥ 1,702 ¥ ¥ 1,702 1,702 ¥ 319,561 Total assets ¥ 319,561 ¥ 319,561 ¥ 319,561 ¥ 9,413 ¥ 9,413 ¥ 319,561 ¥ 9,413 ¥ 319,561 ¥ 9,413 ¥ 1,772 ¥ 1,772 ¥ 9,413 ¥ 1,772 ¥ 9,413 ¥ 1,772 ¥ 330,747 ¥ 330,747 ¥ 1,772 ¥ 319,561 ¥ 330,747 ¥ 1,772 ¥ 330,747 ¥ (2,572 ) ¥ (2,572 ) ¥ 330,747 ¥ 9,413 ¥ (2,572 ) ¥ 330,747 ¥ (2,572 ) ¥ 328,174 ¥ 328,174 ¥ (2,572 ) ¥ (2,572 ) ¥ 1,772 ¥ 328,174 ¥ (2,572 ) ¥ 328,174 ¥ 328,174 ¥ 330,747 ¥ 319,561 ¥ 9,413 ¥ 1,772 - 32 - - 32 - - 32 - - 32 - - 32 - - 32 - - 32 - - 32 - - 32 - - 32 - - 32 - - 32 - - 32 - - 32 - - 32 - - 32 - - 32 - CHIYODA CORPORATION ANNUAL REPORT 2010  Yen EPS ¥ 25.58 Yen EPS Yen ¥ 25.58 ¥ 25.58 EPS ¥ 25.58 ¥ 25.58 Yen EPS 42 ¥ 25.58 42 ¥ 25.58 42 Thousands of U.S. Dollars ¥ 25.58 $ 9,755 Thousands of U.S. Dollars Thousands of $ 9,755 U.S. Dollars $ 9,755 Millions of Yen Thousands of Shares Net Income Shares Weighted-Average ¥ 6,498 254,000 42 Yen EPS ¥ 25.58 ¥ 6,498 254,043 ¥ 25.58 Millions of Yen U.S. Dollars Thousands of ¥ 907 $ 9,755 Consolidated (Corporate) Consolidated Millions of Yen Eliminations ¥ (3,956 ) (Corporate) ¥ 312,985 Asia Consolidated Other Subtotal Eliminations (Corporate) Consolidated Consolidated Consolidated Eliminations (Corporate) Consolidated Subtotal ¥ 312,985 Eliminations ¥ 312,985 ¥ 312,985 312,985 Subtotal 3,956 312,985 Japan ¥ 312,985 316,942 311,283 311,283 ¥ (3,956 ) Consolidated Subtotal ¥ 312,985 ¥ 303,372 315,240 3,956 1,702 312,985 (3,956 ) 922 ¥ ¥ 1,702 ¥ 312,985 Eliminations (3,956 ) (Corporate) ¥ 8,586 (3,956 ) ¥ (3,956 ) 2,998 312,985 Consolidated ¥ 312,985 ¥ 1,026 311,283 35 312,985 ¥ 312,985 ¥ 312,985 ¥ 312,985 316,942 ¥ 328,174 311,283 304,295 (3,956 ) ¥ 328,174 1,702 ¥ 3,956 (3,956 ) ¥ (3,956 ) 311,283 11,585 ¥ ¥ 312,985 312,985 1,702 1,061 ¥ 330,747 315,240 303,560 1,702 312,985 316,942 312,985 ¥ ¥ (2,572 ) (3,956 ) (3,956 ) ¥ 10,620 1,702 ¥ 328,174 311,283 312,985 1,059 ¥ 312,985 3,956 ¥ (3,956 ) ¥ 312,985 316,942 (3,956 ) 312,985 315,240 (3,956 ) 311,283 ¥ 311,283 ¥ 328,174 315,240 311,283 ¥ (2,572 ) 1,702 ¥ 734 (3,956 ) ¥ 328,174 965 ¥ ¥ 1,702 ¥ 311,283 2 ¥ 1,702 ¥ 1,702 ¥ ¥ 330,747 ¥ 319,561 1,702 1,702 1,702 ¥ ¥ ¥ (2,572 ) ¥ 9,413 ¥ 328,174 ¥ 1,772 1,702 ¥ ¥ 330,747 ¥ (2,572 ) ¥ 328,174 ¥ 328,174 ¥ 330,747 ¥ 328,174 ¥ (2,572 ) ¥ 328,174 Chiyoda Corporation and Consolidated Subsidiaries Notes to Consolidated Financial Statements Years Ended March 31, 2010 and 2009 Thousands of U.S. Dollars Thousands of U.S. Dollars Thousands of U.S. Dollars Thousands of U.S. Dollars Year Ended March 31, 2010 Thousands of U.S. Dollars Year Ended March 31, 2010 Year Ended March 31, 2010 Year Ended March 31, 2010 Eliminations Year Ended March 31, 2010 Year Ended March 31, 2010 Revenue: Eliminations Revenue: Revenue: (Corporate) Consolidated Subtotal Sales to customers (Corporate) Consolidated Subtotal Other Sales to customers Sales to customers Revenue: Revenue: Revenue: Interarea transfer Interarea transfer Interarea transfer Sales to customers Sales to customers Sales to customers Interarea transfer Interarea transfer Interarea transfer Total sales Revenue: Sales to customers Interarea transfer Year Ended March 31, 2010 $ 3,262,072 $ 3,262,072 9,920 9,920 $ 3,262,072 $ 3,262,072 $ 3,262,072 9,920 9,920 9,920 3,271,992 $ 3,365,440 $ 3,365,440 3,271,992 Japan Japan Japan Japan Japan Asia Japan Asia Asia Asia Asia $ 92,331 $ 3,262,072 $ 92,331 32,244 9,920 32,244 $ 92,331 $ 92,331 $ 92,331 32,244 32,244 32,244 124,575 3,271,992 124,575 $ 11,037 377 $ 92,331 32,244 $ 3,365,440 Total sales $ 11,037 42,542 377 Operating expenses Total sales Total sales Total sales $ (42,542 ) $ 3,365,440 Total sales 42,542 $ (42,542 ) Thousands of U.S. Dollars Thousands of U.S. Dollars Thousands of U.S. Dollars Subtotal Other Other Other Asia Japan Other Other Other $ 11,037 $ 92,331 $ 11,037 377 32,244 377 $ 11,037 $ 3,365,440 $ 3,365,440 $ 11,037 $ 11,037 $ 3,365,440 $ 3,262,072 377 377 377 3,407,983 9,920 11,414 11,414 11,414 Thousands of U.S. Dollars 124,575 $ 3,365,440 $ 11,037 11,414 11,414 11,414 11,389 114,195 Other Asia 11,389 11,389 11,389 Thousands of U.S. Dollars 3,407,983 3,407,983 3,407,983 3,389,680 3,271,992 Thousands of U.S. Dollars 11,389 11,389 Subtotal Thousands of U.S. Dollars Other Other Thousands of U.S. Dollars 3,389,680 3,389,680 3,389,680 Year Ended March 31, 2010 Year Ended March 31, 2010 Japan Asia Japan Other Asia Revenue: Sales to customers Interarea transfer Revenue: Sales to customers Interarea transfer Total sales Total sales Operating expenses Operating income Total assets Operating expenses Year Ended March 31, 2010 Year Ended March 31, 2010 Operating income Revenue: Revenue: Sales to customers Total assets Sales to customers Interarea transfer Interarea transfer Total sales Total sales $ 3,262,072 9,920 3,271,992 3,264,095 $ 7,897 $ 3,436,143 The segments consisted of the following countries in 2010: Operating expenses The segments consisted of the following countries in 2010: Operating expenses Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Other: Qatar, United States of America and Nigeria Operating income Other: Qatar, United States of America and Nigeria $ Operating income $ 7,897 ¥2,992 million ($32,181 thousand). Total assets Total assets ¥2,992 million ($32,181 thousand). Year Ended March 31, 2009 Year Ended March 31, 2009 The segments consisted of the following countries in 2010: The segments consisted of the following countries in 2010: Japan Asia Japan Revenue: Sales to customers Interarea transfer Revenue: Sales to customers Interarea transfer Total sales Total sales ¥2,992 million ($32,181 thousand). ¥2,992 million ($32,181 thousand). 429,896 Other: Qatar, United States of America and Nigeria Other: Qatar, United States of America and Nigeria Operating expenses Operating income Total assets Operating expenses Year Ended March 31, 2009 Year Ended March 31, 2009 Operating income Revenue: Revenue: Sales to customers Total assets Sales to customers Interarea transfer Interarea transfer Total sales Total sales ¥ 429,879 16 424,825 ¥ 5,070 ¥ 347,936 $ 92,331 $ 3,262,072 32,244 9,920 124,575 3,271,992 114,195 3,264,095 Japan $ 10,380 $ 7,897 Japan $ $ 101,221 $ 3,436,143 $ 3,262,072 9,920 3,271,992 3,264,095 $ 3,436,143 ¥ 16,548 ¥ 429,879 2,103 16 18,651 429,896 16,497 424,825 Japan ¥ 2,154 5,070 ¥ Japan ¥ 10,338 ¥ 347,936 ¥ 429,879 16 ¥ 429,879 16 429,896 429,896 424,825 ¥ 5,070 ¥ 5,070 ¥ 347,936 ¥ 347,936 The segments consisted of the following countries in 2009: Operating expenses The segments consisted of the following countries in 2009: 424,825 Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Other: United States of America and Nigeria Operating income Other: United States of America and Nigeria Operating expenses Operating income ¥3,273 million. Total assets Total assets ¥3,273 million. ¥3,273 million. ¥3,273 million. Operating income Revenue: 3,389,680 Revenue: 11,389 Other Asia Sales to customers Operating income Sales to customers Operating income Operating income Operating income Other Total assets Revenue: Interarea transfer Revenue: Total assets 18,302 $ Interarea transfer Revenue: $ 18,301 $ 25 $ Revenue: Sales to customers Sales to customers Sales to customers Total assets Total assets Total assets Sales to customers Interarea transfer Total assets $ 92,331 $ 11,037 3,271,992 Total sales Interarea transfer Total sales Total sales Interarea transfer Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. $ (27,665 ) $ 3,556,420 Interarea transfer $ 3,365,440 $ 3,365,440 $ 11,037 $ 3,556,420 $ 19,055 $ (42,542 ) 377 32,244 42,542 377 3,264,095 Operating expenses The segments consisted of the following countries in 2010: Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Operating expenses Operating expenses The segments consisted of the following countries in 2010: Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Total sales 3,407,983 3,365,440 (42,542 ) 11,414 The segments consisted of the following countries in 2010: The segments consisted of the following countries in 2010: 3,264,095 11,389 3,365,440 The segments consisted of the following countries in 2010: $ 10,380 $ 25 7,897 $ Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand 11,389 3,264,095 The segments consisted of the following countries in 2010: 3,264,095 11,389 Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand $ 10,380 $ 7,897 $ 7,897 25 $ Operating expenses 3,389,680 3,347,139 (42,541 ) 11,389 Other: Qatar, United States of America and Nigeria Other: Qatar, United States of America and Nigeria Other: Qatar, United States of America and Nigeria Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand 3,347,139 11,389 Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand 25 $ Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand 25 $ $ 3,556,420 $ 101,221 $ 3,436,143 25 $ $ 19,055 $ 3,436,143 $ 3,436,143 Other: Qatar, United States of America and Nigeria Other: Qatar, United States of America and Nigeria $ Operating income Other: Qatar, United States of America and Nigeria 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were $ 18,301 $ Other: Qatar, United States of America and Nigeria 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were $ 18,302 25 $ ¥2,992 million ($32,181 thousand). $ 19,055 $ 3,436,143 Total assets ¥2,992 million ($32,181 thousand). $ 19,055 $ 3,436,143 Total assets Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were $ 19,055 $ 3,436,143 Total assets 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were $ 3,556,420 $ 19,055 ¥2,992 million ($32,181 thousand). 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were ¥2,992 million ($32,181 thousand). ¥2,992 million ($32,181 thousand). Millions of Yen $ 3,556,420 $ 19,055 The segments consisted of the following countries in 2010: The segments consisted of the following countries in 2010: Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. $ 10,380 $ 92,331 $ 101,221 32,244 $ 92,331 $ 92,331 $ 92,331 32,244 32,244 124,575 32,244 Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. 3,365,440 114,195 114,195 114,195 $ 10,380 Operating expenses Japan Eliminations 7,897 $ 7,897 $ Japan Japan 3,347,139 Year Ended March 31, 2010 (Corporate) Consolidated $ 92,331 $ 3,262,072 $ 7,897 $ 10,380 $ 3,262,072 $ 3,262,072 7,897 $ $ 10,380 7,897 $ $ 10,380 $ 3,436,143 $ 101,221 9,920 32,244 $ 3,436,143 $ 3,436,143 9,920 9,920 $ 3,262,072 $ 3,262,072 $ 3,262,072 $ 101,221 $ 101,221 $ 101,221 9,920 Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. 9,920 9,920 $ 101,221 $ 101,221 $ 101,221 Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were $ Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. $ 25 $ 3,264,095 Other $ $ 10,380 $ 25 Other Other $ 3,365,440 $ 11,037 $ 25 $ $ 11,037 $ 92,331 $ 11,037 $ 25 $ $ 25 $ 7,897 $ $ 3,556,420 $ 19,055 377 42,542 $ 19,055 $ 101,221 $ 19,055 32,244 377 $ 11,037 $ 11,037 $ 11,037 $ 19,055 $ 19,055 $ 19,055 377 $ 3,436,143 377 11,414 377 3,271,992 Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Eliminations (Corporate) Consolidated Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. 3,389,680 11,389 3,271,992 18,302 $ 3,264,095 The segments consisted of the following countries in 2010: $ 18,301 $ 3,528,755 $ 3,436,143 Millions of Yen ¥2,992 million ($32,181 thousand). ¥2,992 million ($32,181 thousand). Operating expenses Operating expenses Operating expenses Operating income Operating income Operating income Operating income Operating income $ 3,262,072 9,920 $ 3,365,440 42,542 $ 3,262,072 3,407,983 11,414 $ 92,331 32,244 Total assets Total assets $ 10,380 $ 10,380 $ 10,380 $ 101,221 $ 3,436,143 $ 3,436,143 $ 3,436,143 $ 3,365,440 Total sales Total sales Total sales 3,271,992 3,271,992 3,271,992 114,195 $ 114,195 114,195 $ 10,380 124,575 124,575 114,195 124,575 Operating income $ $ $ $ 19,055 114,195 3,264,095 124,575 3,271,992 $ 3,556,420 $ 3,556,420 $ 3,556,420 25 $ 10,380 11,414 11,414 11,389 11,414 3,264,095 3,271,992 Total assets Total assets $ 3,528,755 $ 3,528,755 3,347,139 $ 3,528,755 3,264,095 $ 3,436,143 3,389,680 3,407,983 $ (42,542 ) $ (27,665 ) (42,541 ) (42,542 ) $ (27,665 ) (42,542 ) $ (27,665 ) (42,541 ) 124,575 $ 10,380 $ 101,221 114,195 114,195 124,575 124,575 $ 101,221 124,575 114,195 114,195 $ 10,380 $ 101,221 $ 101,221 7,897 7,897 7,897 Subtotal Subtotal 11,414 11,389 $ 19,055 11,414 11,389 $ 19,055 11,414 Asia Asia Asia 18,301 18,302 18,302 7,897 7,897 Asia 25 3,407,983 Operating income Operating expenses Year Ended March 31, 2010 Year Ended March 31, 2010 Operating expenses Operating expenses Operating expenses Operating expenses Year Ended March 31, 2010 3,407,983 Thousands of U.S. Dollars Year Ended March 31, 2010 Operating income Year Ended March 31, 2010 (42,541 ) Year Ended March 31, 2010 Revenue: 3,389,680 Sales to customers Total assets Interarea transfer Thousands of U.S. Dollars (42,542 ) 3,365,440 11,414 $ $ The segments consisted of the following countries in 2010: Asia Millions of Yen Millions of Yen Millions of Yen Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Millions of Yen Total sales 3,271,992 3,271,992 3,271,992 3,264,095 3,264,095 Japan Japan 3,264,095 3,264,095 3,264,095 124,575 124,575 124,575 114,195 3,264,095 Asia Japan 114,195 Asia Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand ¥ 446,438 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were Other Asia ¥ 9 42 ¥ 16,548 2,103 52 18,651 46 16,497 ¥ 5 ¥ 2,154 Asia ¥ 636 ¥ 10,338 ¥ 16,548 2,103 ¥ 16,548 2,103 18,651 16,497 16,497 Asia Japan Japan Other Asia Asia Asia Other Other Other Subtotal ¥ (2,161 ) ¥ 446,438 446,438 Total sales Total sales Total sales Total sales Total sales Operating income Consolidated Operating expenses ¥ 429,879 ¥ 429,879 ¥ 429,879 16 16 16 Year Ended March 31, 2009 Year Ended March 31, 2009 ¥2,992 million ($32,181 thousand). ¥2,992 million ($32,181 thousand). ¥2,992 million ($32,181 thousand). Revenue: Sales to customers Interarea transfer Revenue: Sales to customers Interarea transfer 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were Revenue: Sales to customers Other Revenue: Revenue: Revenue: Interarea transfer Sales to customers Sales to customers Sales to customers Interarea transfer Interarea transfer Interarea transfer Total sales 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were Other Japan Asia Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Other: Qatar, United States of America and Nigeria Japan The segments consisted of the following countries in 2010: Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand The segments consisted of the following countries in 2010: Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand The segments consisted of the following countries in 2010: Millions of Yen Other: Qatar, United States of America and Nigeria Other: Qatar, United States of America and Nigeria Eliminations Consolidated (Corporate) Subtotal Other The segments consisted of the following countries in 2010: Subtotal Subtotal Subtotal ¥ 446,438 ¥ 9 42 ¥ 446,438 ¥ 446,438 ¥ 446,438 Year Ended March 31, 2009 Japan Year Ended March 31, 2009 Eliminations Japan Year Ended March 31, 2009 Japan Year Ended March 31, 2009 Year Ended March 31, 2009 Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Revenue: Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand (Corporate) Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand ¥ 9 ¥ 16,548 ¥ 429,879 Subtotal Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Other: Qatar, United States of America and Nigeria ¥ 16,548 ¥ 429,879 Sales to customers ¥ 16,548 ¥ 429,879 Other: Qatar, United States of America and Nigeria Other: Qatar, United States of America and Nigeria 42 2,103 16 Other: Qatar, United States of America and Nigeria 2,103 16 2,103 Interarea transfer 16 ¥2,992 million ($32,181 thousand). ¥ 9 ¥ 16,548 ¥2,992 million ($32,181 thousand). ¥2,992 million ($32,181 thousand). ¥ 9 ¥ 16,548 ¥ 9 ¥ 16,548 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were 42 2,103 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were 42 2,103 42 2,103 52 18,651 18,651 52 52 52 46 16,497 Other Asia 46 46 46 ¥ 5 ¥ 2,154 ¥ 9 ¥ 5 ¥ 16,548 ¥ 5 ¥ 5 ¥ 636 42 ¥ 10,338 2,103 ¥ 636 ¥ 636 ¥ 636 52 18,651 ¥ 446,438 ¥ 9 ¥ 446,438 2,161 ¥ (2,161 ) 42 2,161 Total sales Operating expenses Operating expenses Year Ended March 31, 2009 Japan (2,161 ) 448,600 Year Ended March 31, 2009 Year Ended March 31, 2009 448,600 52 446,438 Millions of Yen 16,497 Operating expenses 16,497 Operating expenses 16,497 Operating expenses ¥ 2,154 5,070 Operating expenses Millions of Yen Year Ended March 31, 2009 Asia Japan Operating income 5,070 ¥ 2,154 ¥ 5,070 ¥ Operating income Revenue: Asia Year Ended March 31, 2009 Japan (2,157 ) 441,369 Asia Year Ended March 31, 2009 Japan Revenue: Revenue: 441,369 439,211 46 Year Ended March 31, 2009 Consolidated Subtotal Other Asia ¥ 16,548 ¥ 429,879 Sales to customers ¥ 2,154 5,070 ¥ Operating income ¥ 429,879 Sales to customers ¥ 16,548 ¥ 429,879 Sales to customers ¥ 2,154 5,070 ¥ Operating income ¥ 2,154 5,070 ¥ Operating income Operating income Consolidated Subtotal Other ¥ 10,338 ¥ 347,936 Total assets Revenue: 16 Interarea transfer 2,103 Revenue: ¥ 10,338 Total assets ¥ 347,936 ¥ 347,936 Total assets (3 ) ¥ 7,230 ¥ ¥ 16 Interarea transfer 2,103 16 Interarea transfer Revenue: ¥ 7,230 ¥ ¥ 5 7,227 Revenue: ¥ 16,548 ¥ 429,879 Sales to customers ¥ 16,548 ¥ 429,879 Sales to customers ¥ 16,548 ¥ 429,879 Sales to customers ¥ 10,338 Total assets ¥ 347,936 ¥ 10,338 Total assets ¥ 347,936 ¥ 10,338 Total assets ¥ 347,936 Sales to customers 2,103 16 Interarea transfer Total assets ¥ 9 Total sales 429,896 Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. 2,103 16 Interarea transfer 18,651 Total sales 2,103 16 Interarea transfer ¥ (1,095 ) ¥ 358,912 Interarea transfer ¥ 9 ¥ 358,912 ¥ 636 ¥ (2,161 ) 42 42 Operating expenses The segments consisted of the following countries in 2009: Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Operating expenses 424,825 The segments consisted of the following countries in 2009: Total sales 446,438 (2,161 ) 52 The segments consisted of the following countries in 2009: The segments consisted of the following countries in 2009: Operating expenses 446,438 The segments consisted of the following countries in 2009: 5,070 ¥ Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Operating expenses Operating expenses Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand ¥ Operating expenses 439,211 (2,157 ) 46 Other: United States of America and Nigeria Other: United States of America and Nigeria Other: United States of America and Nigeria Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand 439,211 Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand ¥ Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand ¥ ¥ 636 ¥ 347,936 ¥ 10,338 ¥ ¥ 10,338 ¥ 347,936 ¥ 347,936 Other: United States of America and Nigeria Other: United States of America and Nigeria Operating income Other: United States of America and Nigeria ¥ 7,227 Other: United States of America and Nigeria 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were 7,227 ¥ ¥ 347,936 ¥ 347,936 ¥ 347,936 ¥ 357,816 ¥3,273 million. ¥ 357,816 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were ¥ ¥3,273 million. ¥ 429,879 448,600 16 Millions of Yen 52 448,600 448,600 448,600 441,369 Millions of Yen 46 Subtotal Millions of Yen Other Millions of Yen 441,369 441,369 441,369 ¥ ¥ 5 Japan ¥ 446,438 ¥ ¥ 9 ¥ ¥ 5,070 ¥ 358,912 2,161 ¥ 636 42 ¥ 358,912 ¥ 358,912 ¥ 358,912 ¥ 429,879 448,600 52 Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. 429,896 ¥2,992 million ($32,181 thousand). 429,896 429,896 429,896 424,825 424,825 Japan 424,825 424,825 424,825 Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were 441,369 Total assets ¥ 7,230 ¥ 358,912 ¥ 5 Total assets Total assets Total assets ¥ 636 ¥3,273 million. ¥3,273 million. ¥3,273 million. 16,497 424,825 The segments consisted of the following countries in 2009: The segments consisted of the following countries in 2009: 441,369 46 429,896 7,230 ¥ 5 424,825 ¥ 446,438 2,161 448,600 Other ¥ 5 Other Other ¥ 9 ¥ ¥ 636 42 ¥ 9 ¥ 9 ¥ 9 42 42 52 42 7,230 ¥3,273 million. 52 Operating income Operating income Eliminations (Corporate) Eliminations (Corporate) 448,600 Operating income Operating income Operating income Operating income (2,157 ) ¥ ¥ 446,438 2,161 Total assets Total assets Operating expenses Total sales Total sales Total sales Millions of Yen ¥ 2,154 ¥ 2,154 ¥ 2,154 ¥ 10,338 16,497 16,497 16,497 ¥ 2,154 18,651 18,651 16,497 18,651 424,825 424,825 424,825 5,070 429,896 429,896 429,896 ¥ 446,438 429,896 424,825 Asia Japan 18,651 429,896 ¥ 358,912 ¥ 636 ¥ 9 42 16,497 Asia ¥ 5 ¥ 2,154 46 16,497 ¥ 2,154 ¥ 18,651 18,651 18,651 Total sales 46 ¥ 46 46 ¥ 5 ¥ 5 ¥ 5 ¥ 5 ¥ 636 429,896 52 52 46 52 424,825 424,825 429,896 ¥ 347,936 429,896 441,369 ¥ 358,912 ¥ 357,816 439,211 ¥ 357,816 ¥ 446,438 46 Other 18,651 (2,161 ) ¥ (1,095 ) (2,161 ) (2,157 ) ¥ (1,095 ) ¥ (2,161 ) 5,070 5,070 5,070 ¥ 636 ¥ 636 ¥ 636 16,497 52 5,070 7,227 46 (3 ) (3 ) ¥ ¥ ¥ Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand ¥ 2,154 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were ¥ (1,095 ) 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were ¥ 5 Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were ¥ 636 The segments consisted of the following countries in 2009: The segments consisted of the following countries in 2009: Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. The segments consisted of the following countries in 2009: ¥3,273 million. ¥ 10,338 ¥ 10,338 ¥ 10,338 Total assets ¥ 347,936 ¥ 10,338 ¥ 2,154 ¥ 10,338 (3 ) ¥ Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. The segments consisted of the following countries in 2009: The segments consisted of the following countries in 2009: Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Other: United States of America and Nigeria Other: United States of America and Nigeria The segments consisted of the following countries in 2009: Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand The segments consisted of the following countries in 2009: Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand The segments consisted of the following countries in 2009: Other: United States of America and Nigeria Other: United States of America and Nigeria Other: United States of America and Nigeria The segments consisted of the following countries in 2009: 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Other: United States of America and Nigeria Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Other: United States of America and Nigeria Other: United States of America and Nigeria Other: United States of America and Nigeria ¥3,273 million. ¥3,273 million. ¥3,273 million. 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were ¥3,273 million. ¥3,273 million. ¥3,273 million. ¥3,273 million. Thousands of U.S. Dollars Eliminations Eliminations Eliminations Subtotal (Corporate) Consolidated (Corporate) Consolidated (Corporate) Consolidated Thousands of U.S. Dollars Subtotal Eliminations Eliminations Eliminations Subtotal Subtotal Subtotal (Corporate) Consolidated (Corporate) Consolidated (Corporate) Consolidated Other Asia Subtotal $ 3,365,440 $ 3,365,440 42,542 377 42,542 $ (42,542 ) 42,542 $ 92,331 42,542 42,542 42,542 3,407,983 3,407,983 $ (42,542 ) $ (42,542 ) $ (42,542 ) (42,542 ) 32,244 $ 3,365,440 $ 3,365,440 $ 3,365,440 $ (42,542 ) $ (42,542 ) $ 3,365,440 $ 3,365,440 $ 3,365,440 $ 11,037 $ 3,365,440 (42,542 ) 3,365,440 (42,542 ) 377 3,365,440 3,365,440 42,542 $ (42,542 ) Eliminations (Corporate) Consolidated $ 3,365,440 Japan 3,389,680 Subtotal Subtotal Eliminations (Corporate) Consolidated (42,541 ) 3,389,680 (42,541 ) Eliminations Eliminations 3,365,440 3,365,440 3,347,139 3,365,440 11,414 (42,542 ) (42,542 ) (42,541 ) (42,542 ) 124,575 (Corporate) Consolidated (Corporate) Consolidated Thousands of U.S. Dollars 3,407,983 3,347,139 3,347,139 18,302 Subtotal Subtotal Subtotal 114,195 18,302 18,302 $ (Corporate) Consolidated (Corporate) Consolidated (Corporate) Consolidated 11,389 3,389,680 18,301 18,301 $ $ 25 $ $ (42,541 ) (42,541 ) (42,541 ) Eliminations Eliminations Eliminations 3,347,139 3,347,139 3,347,139 18,301 18,302 18,302 18,302 $ 3,365,440 $ 3,365,440 $ 3,556,420 42,542 $ 10,380 $ (42,542 ) $ 3,556,420 $ (27,665 ) 42,542 377 $ 3,365,440 Other $ $ $ $ (27,665 ) $ (42,542 ) $ (27,665 ) $ (42,542 ) $ 3,528,755 25 $ 18,301 18,301 18,301 $ $ 3,365,440 $ 3,365,440 Subtotal $ 3,528,755 $ 3,528,755 18,302 Asia $ 3,365,440 $ 3,365,440 $ 3,365,440 3,407,983 42,542 $ 101,221 (42,542 ) 3,407,983 42,542 42,542 $ (42,542 ) $ (42,542 ) $ (42,542 ) $ 19,055 3,365,440 (42,542 ) (42,542 ) $ (27,665 ) $ (27,665 ) $ (27,665 ) $ 92,331 $ 3,528,755 $ 3,528,755 $ 3,528,755 $ 11,037 9,920 32,244 $ 3,365,440 $ 3,365,440 $ 3,365,440 377 $ 3,556,420 3,365,440 3,365,440 $ 3,365,440 42,542 3,407,983 3,407,983 3,407,983 3,389,680 (42,541 ) 3,389,680 (42,542 ) (42,542 ) (42,542 ) (42,541 ) (42,541 ) 3,347,139 3,365,440 3,365,440 3,365,440 3,347,139 3,347,139 11,414 3,407,983 124,575 3,389,680 3,389,680 3,389,680 18,302 25 $ $ (42,541 ) (42,541 ) (42,541 ) $ 18,301 3,347,139 3,347,139 3,347,139 $ $ 18,302 114,195 11,389 18,301 18,301 3,389,680 $ $ 18,302 18,302 18,302 $ 3,556,420 $ (27,665 ) $ 3,556,420 $ 10,380 7,897 $ $ (27,665 ) $ (27,665 ) $ 3,528,755 $ $ $ 25 18,301 18,301 18,301 $ 3,528,755 $ 3,528,755 18,302 $ $ (42,542 ) 3,365,440 (42,541 ) Eliminations 3,347,139 (Corporate) Consolidated $ 18,301 $ (27,665 ) $ 3,528,755 $ 3,365,440 $ (42,542 ) (42,542 ) 3,365,440 (42,541 ) 3,347,139 $ 18,301 $ 3,556,420 $ 3,556,420 $ 3,556,420 $ (27,665 ) $ (27,665 ) $ (27,665 ) $ 3,528,755 $ 3,528,755 $ 3,528,755 $ 101,221 $ 19,055 $ 3,556,420 $ (27,665 ) $ 3,528,755 Millions of Yen Subtotal Eliminations (Corporate) Subtotal Eliminations Eliminations Eliminations (Corporate) (Corporate) (Corporate) Asia 2,161 ¥ 446,438 ¥ 446,438 2,161 ¥ (2,161 ) 2,161 ¥ 16,548 2,161 2,161 2,161 448,600 Millions of Yen 448,600 2,103 ¥ (2,161 ) ¥ (2,161 ) ¥ (2,161 ) (2,161 ) Eliminations Eliminations (Corporate) (Corporate) Consolidated Millions of Yen Consolidated Consolidated Consolidated Consolidated Consolidated Other Subtotal ¥ 446,438 ¥ 446,438 ¥ 446,438 ¥ (2,161 ) ¥ (2,161 ) ¥ 446,438 ¥ 446,438 ¥ 446,438 ¥ 9 ¥ 446,438 Eliminations (2,161 ) (2,161 ) (2,157 ) (2,161 ) 441,369 Subtotal 18,651 (Corporate) 441,369 Subtotal Eliminations Eliminations 446,438 446,438 439,211 446,438 (2,157 ) Consolidated (2,157 ) (Corporate) (Corporate) 52 448,600 439,211 439,211 Consolidated Consolidated (2,161 ) (2,161 ) (2,161 ) 446,438 42 446,438 446,438 2,161 ¥ (2,161 ) 7,230 ¥ Subtotal Subtotal Subtotal 7,230 ¥ 16,497 ¥ Asia Eliminations Eliminations Eliminations (2,157 ) (2,157 ) (2,157 ) (Corporate) (Corporate) (Corporate) 7,230 (3 ) ¥ 46 (3 ) ¥ ¥ Millions of Yen 439,211 439,211 439,211 7,227 Consolidated Consolidated Consolidated 441,369 (3 ) 7,227 ¥ ¥ 7,227 7,230 7,230 7,230 ¥ 446,438 ¥ 446,438 ¥ 358,912 2,161 ¥ 2,154 ¥ (2,161 ) ¥ 358,912 2,161 ¥ (1,095 ) (3 ) (3 ) (3 ) ¥ ¥ ¥ ¥ 5 ¥ (1,095 ) ¥ (2,161 ) ¥ (1,095 ) ¥ (2,161 ) ¥ 357,816 7,227 7,227 7,227 ¥ ¥ ¥ ¥ ¥ 446,438 Other Subtotal ¥ 446,438 ¥ 446,438 ¥ 357,816 ¥ 357,816 7,230 Eliminations (Corporate) Consolidated ¥ 446,438 446,438 (2,157 ) Eliminations 439,211 (Corporate) Consolidated ¥ (3 ) ¥ 7,227 ¥ 446,438 ¥ 446,438 ¥ 446,438 ¥ 446,438 ¥ 446,438 ¥ 446,438 448,600 2,161 ¥ 10,338 (2,161 ) 448,600 2,161 2,161 ¥ (2,161 ) ¥ (2,161 ) ¥ (2,161 ) (2,161 ) 446,438 (2,161 ) ¥ 636 ¥ 9 ¥ (1,095 ) ¥ (1,095 ) ¥ (1,095 ) ¥ 16,548 ¥ 357,816 ¥ 357,816 ¥ 357,816 16 2,103 ¥ 358,912 ¥ 446,438 446,438 446,438 2,161 ¥ (1,095 ) ¥ (2,161 ) ¥ 357,816 ¥ 446,438 448,600 448,600 448,600 441,369 (2,157 ) 441,369 (2,161 ) (2,161 ) (2,161 ) (2,157 ) 439,211 (2,157 ) 446,438 446,438 446,438 441,369 441,369 441,369 7,230 ¥ ¥ ¥ (3 ) 7,230 (2,157 ) (2,157 ) (2,157 ) ¥ ¥ ¥ (3 ) 7,227 (3 ) 439,211 439,211 439,211 ¥ 18,651 16,497 439,211 439,211 448,600 ¥ 7,227 7,227 441,369 ¥ ¥ ¥ 7,230 7,230 7,230 ¥ 358,912 ¥ (1,095 ) ¥ 358,912 ¥ 2,154 ¥ ¥ ¥ 5,070 (3 ) (3 ) ¥ (1,095 ) ¥ 357,816 ¥ (1,095 ) (3 ) ¥ ¥ ¥ 5 ¥ 7,227 7,227 7,227 ¥ 357,816 ¥ 357,816 7,230 ¥ 42 52 46 (2,161 ) 446,438 (2,157 ) 439,211 ¥ (3 ) ¥ 7,227 ¥ 358,912 ¥ 358,912 ¥ 358,912 ¥ (1,095 ) ¥ (1,095 ) ¥ (1,095 ) ¥ 357,816 ¥ 357,816 ¥ 357,816 ¥ 10,338 ¥ 636 ¥ 358,912 ¥ (1,095 ) ¥ 357,816 Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. 18,651 0 CHIYODA CORPORATION ANNUAL REPORT 2010 - 33 - - 33 - - 33 - - 33 - - 33 - - 33 - - 33 - - 33 - - 33 - - 33 - - 33 - - 33 - - 33 - - 33 - - 33 - - 33 - - 33 - - 33 -  3,389,680 Subtotal 3,389,680 Subtotal Thousands of U.S. Dollars Thousands of U.S. Dollars 3,407,983 3,407,983 (42,542 ) Eliminations 3,347,139 (Corporate) Consolidated (42,542 ) Eliminations (42,541 ) (Corporate) Consolidated 3,347,139 3,365,440 (42,541 ) 3,365,440 Year Ended March 31, 2010 Year Ended March 31, 2010 Japan Japan Asia Asia Other Other Subtotal Subtotal Thousands of U.S. Dollars Thousands of U.S. Dollars Eliminations (Corporate) Consolidated Eliminations (Corporate) Consolidated $ 3,262,072 $ 3,262,072 9,920 9,920 $ 92,331 $ 92,331 32,244 32,244 $ 11,037 $ 11,037 377 377 $ 3,365,440 $ 3,365,440 42,542 42,542 $ (42,542 ) $ (42,542 ) $ 3,365,440 $ 3,365,440 Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. 3,407,983 (42,542 ) 3,365,440 (42,542 ) 3,365,440 3,407,983 Operating expenses The segments consisted of the following countries in 2010: The segments consisted of the following countries in 2010: 3,264,095 Operating expenses 3,264,095 114,195 114,195 11,389 11,389 3,389,680 3,389,680 (42,541 ) (42,541 ) 3,347,139 3,347,139 Operating income Operating income Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand $ 10,380 $ 10,380 7,897 7,897 $ $ $ 25 $ 25 $ 18,302 $ 18,302 $ 18,301 $ 18,301 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were $ 3,556,420 $ 3,556,420 $ (27,665 ) $ (27,665 ) $ 3,528,755 $ 3,528,755 Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. The segments consisted of the following countries in 2010: The segments consisted of the following countries in 2010: Millions of Yen Millions of Yen Year Ended March 31, 2009 Year Ended March 31, 2009 Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Other: Qatar, United States of America and Nigeria Other: Qatar, United States of America and Nigeria Japan Japan Asia Asia Other Other Subtotal Subtotal Eliminations (Corporate) Eliminations (Corporate) Consolidated Consolidated $ 18,302 $ 18,302 $ 3,365,440 $ 3,365,440 $ 3,556,420 42,542 $ 3,556,420 42,542 $ (42,542 ) $ (27,665 ) $ (27,665 ) $ (42,542 ) $ $ 3,365,440 $ 3,528,755 18,301 $ 18,301 $ 3,365,440 $ 3,528,755 Revenue: Revenue: Sales to customers Sales to customers Interarea transfer Interarea transfer Total sales Total sales Operating expenses Year Ended March 31, 2010 Year Ended March 31, 2010 Operating expenses Operating income Revenue: Revenue: Operating income Sales to customers Sales to customers Total assets Interarea transfer Interarea transfer Total assets Total sales Total sales 3,271,992 3,271,992 124,575 124,575 11,414 11,414 3,264,095 3,264,095 Japan Japan 114,195 114,195 Asia Asia 11,389 11,389 Other Other $ $ 7,897 7,897 $ 3,262,072 $ 3,262,072 $ 3,436,143 $ 3,436,143 9,920 9,920 $ 10,380 $ 10,380 $ 92,331 $ 92,331 $ 101,221 32,244 $ 101,221 32,244 $ $ 25 25 $ 11,037 $ 11,037 $ 19,055 $ 19,055 377 377 3,271,992 3,271,992 124,575 124,575 11,414 11,414 Other: Qatar, United States of America and Nigeria Other: Qatar, United States of America and Nigeria Total assets Total assets $ 3,436,143 $ 3,436,143 $ 101,221 $ 101,221 $ 19,055 $ 19,055 ¥2,992 million ($32,181 thousand). ¥2,992 million ($32,181 thousand). Revenue: Revenue: Sales to customers Sales to customers Interarea transfer ¥2,992 million ($32,181 thousand). ¥2,992 million ($32,181 thousand). Interarea transfer Total sales Total sales Operating expenses Year Ended March 31, 2009 Year Ended March 31, 2009 Operating expenses Operating income Revenue: Revenue: Operating income Sales to customers Sales to customers Total assets Interarea transfer Interarea transfer Total assets Total sales Total sales ¥ 429,879 ¥ 429,879 16 16 ¥ 16,548 ¥ 16,548 2,103 2,103 429,896 429,896 18,651 18,651 424,825 Japan 424,825 Japan ¥ ¥ 5,070 5,070 ¥ 429,879 ¥ 429,879 ¥ 347,936 ¥ 347,936 16 16 16,497 16,497 Asia Asia ¥ 2,154 ¥ 2,154 ¥ 16,548 ¥ 16,548 2,103 ¥ 10,338 ¥ 10,338 2,103 ¥ 9 ¥ 9 42 42 52 52 Other 46 46 Other ¥ 5 ¥ 5 ¥ 9 ¥ 9 42 ¥ 636 ¥ 636 42 429,896 429,896 18,651 18,651 52 52 Total assets Total assets ¥3,273 million. ¥3,273 million. ¥ 347,936 ¥ 347,936 ¥ 10,338 ¥ 10,338 ¥ 636 ¥ 636 The segments consisted of the following countries in 2009: The segments consisted of the following countries in 2009: Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Other: United States of America and Nigeria Other: United States of America and Nigeria Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. 448,600 (2,161 ) 446,438 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2010 were Millions of Yen 448,600 Millions of Yen 448,600 441,369 Subtotal 441,369 Subtotal ¥ 7,230 ¥ 7,230 ¥ 446,438 ¥ 446,438 ¥ 358,912 2,161 ¥ 358,912 2,161 ¥ (3 ) ¥ (3 ) ¥ (2,161 ) ¥ (1,095 ) ¥ (1,095 ) ¥ (2,161 ) ¥ 7,227 ¥ 7,227 ¥ 446,438 ¥ 446,438 ¥ 357,816 ¥ 357,816 (2,161 ) Eliminations (Corporate) (2,157 ) (2,161 ) Eliminations (2,157 ) (Corporate) 439,211 Consolidated 439,211 Consolidated ¥ 446,438 ¥ 446,438 2,161 2,161 446,438 446,438 ¥ 446,438 ¥ 446,438 ¥ (2,161 ) ¥ (2,161 ) 448,600 446,438 (2,161 ) Operating expenses The segments consisted of the following countries in 2009: The segments consisted of the following countries in 2009: 424,825 Operating expenses 424,825 16,497 16,497 46 46 441,369 441,369 (2,157 ) (2,157 ) 439,211 439,211 Operating income Operating income Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand Asia: Indonesia, Singapore, Philippines, Myanmar, Malaysia and Thailand ¥ 2,154 ¥ 2,154 5,070 5,070 ¥ ¥ ¥ 5 ¥ 5 ¥ 7,230 ¥ 7,230 ¥ (3 ) ¥ (3 ) ¥ 7,227 ¥ 7,227 Other: United States of America and Nigeria Other: United States of America and Nigeria 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were ¥ 358,912 ¥ 358,912 ¥ (1,095 ) ¥ (1,095 ) ¥ 357,816 ¥ 357,816 Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. Notes: 1. The Company and consolidated subsidiaries operate within three geographic segments based on the countries where the companies are located. 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were 2. Corporate assets mainly consist of long-term loans and investment securities of the Company. Corporate assets as of March 31, 2009 were ¥3,273 million. ¥3,273 million. - 33 - - 33 - - 33 - - 33 - CHIYODA CORPORATION ANNUAL REPORT 2010 1 Chiyoda Corporation and Consolidated Subsidiaries Notes to Consolidated Financial Statements Years Ended March 31, 2010 and 2009 (2) Sales to Foreign Customers Millions of Yen The Middle Year Ended March 31, 2010 Asia and Near East Oceania Other Total Overseas sales (A) Consolidated sales (B) (A)/(B) ¥ 12,709 ¥ 147,336 ¥ 6,730 ¥ 2,330 4.06% 47.07% 2.15% 0.75% ¥ 169,107 312,985 54.03% Thousands of U.S. Dollars The Middle Year Ended March 31, 2010 Asia and Near East Oceania Other Total Overseas sales (A) Consolidated sales (B) (A)/(B) $ 136,665 $ 1,584,260 $ 72,376 $ 25,059 4.06% 47.07% 2.15% 0.75% $ 1,818,361 3,365,440 54.03% Note: The Company and consolidated subsidiaries are summarized into four segments by geographic area based on the countries where the companies are located. The segments consisted of the following countries in 2010: Asia: The Middle and Near East: Qatar, UAE and others Oceania: Other: Papua New Guinea and Australia Algeria and Brazil Singapore, Indonesia, Malaysia, Thailand and others Year Ended March 31, 2009 Asia Millions of Yen The Middle and Near East Russia and Central Asia Other Total Overseas sales (A) Consolidated sales (B) (A)/(B) ¥ 20,380 ¥ 277,627 ¥ 23,308 ¥ 1,966 4.56% 62.19% 5.22% 0.44% ¥ 323,282 446,438 72.41% Note: The Company and consolidated subsidiaries are summarized into four segments by geographic area based on the countries where the companies are located. The segments consisted of the following countries in 2009: Asia: The Middle and Near East: Qatar, UAE and others Russia and Central Asia: Other: Russia Australia, Algeria and others Singapore, Indonesia, Malaysia, Thailand and others The Company and its consolidated subsidiaries operate predominantly in the engineering business, while certain subsidiaries operate in leasing and software producing businesses which are minor in relation to the total business. The proportion of engineering business is over 90% in the total sales of the Group. Accordingly, the presentation of industry segment information is not required under Japanese accounting standards. * * * * * *  CHIYODA CORPORATION ANNUAL REPORT 2010 - 34 - CHIYODA CORPORATION ANNUAL REPORT 2010  Global Network (As of July 1, 2010) Home Offices Yokohama Head Office Koyasu Office & Research Park Kawasaki Office Osaka Office 12-1, Tsurumichuo 2-chome, 13, Moriya-cho 3-chome, Solid Square west pavilion 9F, 14-10, Nishinakajima 5-chome, Tsurumi-ku, Yokohama 230-8601, Japan Kanagawa-ku, Yokohama 221-0022, Japan Te l : (81) 45-521-1231 (voice guidance) Te l : (81) 45-441-1268 580, Horikawa-cho, Saiwai-ku, Kawasaki 212-0013, Japan Yodogawa-ku, Osaka 532-0011, Japan Te l : (81) 6-6390-3411 Fax: (81) 45-503-0200 Fax: (81) 45-441-1297 Te l : (81) 45-521-1231 (voice guidance) Fax: (81) 6-6889-5101 Fax: (81) 45-503-0200 Domestic Subsidiaries & Affiliated Companies Engineering Chiyoda Advanced Solutions Corporation Chiyoda TechnoAce Co., Ltd. Services: Advanced engineering consulting Services: Design and construction for 1-25, Shinurashima-cho 1-chome, pharmaceutical facilities Kanagawa-ku, Yokohama 221-0031, Japan 13, Moriya-cho 3-chome, Kanagawa-ku, Te l : (81) 45-441-1260 Fax: (81) 45-441-1264 URL: http://www.chiyoda-as.co.jp/ Chiyoda Keiso Co., Ltd. Services: Design, procurement and construc- tion for electrical and instrumentation facilities Yokohama 221-0022, Japan Te l : (81) 45-441-9600 Fax: (81) 45-450-5236 URL: http://www.cta.chiyoda.co.jp/ Business Support Arrow Business Consulting Corporation Services: Consulting for finance and accounting 32-1, Tsurumichuo 4-chome, Tsurumi-ku, Yokohama 230-0051, Japan Te l : (81) 45-502-5774 Fax: (81) 45-502-5753 Arrowhead International Corporation Services: Travel services and supply of Chiyoda U-Tech Co., Ltd. spare parts Services: Consulting and human resources 7-8, Shibakoen 1-chome, Minato-ku, 13, Moriya-cho 3-chome, Kanagawa-ku, placement Yokohama 221-0022, Japan Te l : (81) 45-441-1433 Fax: (81) 45-441-1434 URL: http://www.ckc.chiyoda.co.jp/ Chiyoda Kosho Co., Ltd. Services: Design, construction and maintenance for domestic projects 15-19, Tsurumichuo 2-chome, Tsurumiku, Yokohama 230-0051, Japan Te l : (81) 45-502-7618 Fax: (81) 45-503-5399 URL: http://www.utc-yokohama.com/ IT Engineering Limited Services: IT consulting and solution provider 34-26, Tsurumichuo 4-chome, Tsurumiku, 1-25, Shinurashima-cho 1-chome, Yokohama 230-0051, Japan Te l : (81) 45-506-7662 Fax: (81) 45-506-7667 URL: http://www.cks-ykh.co.jp/ Kanagawa-ku, Yokohama 221-0031, Japan Te l : (81) 45-441-9123 Fax: (81) 45-441-1466 URL: http://www.ite.co.jp/ Tokyo 105-0011, Japan Te l : (81) 3-5470-0880 Fax: (81) 3-5470-0890 URL: http://www.arrowhead.co.jp/ Arrow Human Resources Co., Ltd. Services: Placement of technicians and office staff and reemployment support 43, Hon-cho 4-chome, Naka-ku, Yokohama 231-0005, Japan Te l : (81) 45-662-1126 Fax: (81) 45-662-1173 URL: http://www.ahr.co.jp/ Overseas Offices Abu Dhabi Office Korea Representative Office Singapore Human Resources Office P.O. Box 43928, Clock Tower Bldg., 1358-8, Tal-dong Nam-ku, Ulsan, Korea 10 Anson Road, #03-02, International Plaza, Floor No. 02 Suite No. 0204 AI Najda Street, Abu Dhabi, U.A.E. Te l : (971) 2-671-7161 Fax: (971) 2-671-7162 Beijing Office Tel: (82) 52-256-5721/5722 Fax: (82) 52-256-5723 Middle East Headquarters Doha Office 12th Floor, Al-Qassar Tower, Taawon Street, Room No. 1028, China World Tower No. 1, West Bay, P.O. Box 20243 Jianguomenwai Street, Chaoyang District, Doha, Qatar Beijing, 100004, China Te l : (86) 10-6505-2678 Fax: (86) 10-6505-1118 Te l : (974) 4462-2875/2876 Fax: (974) 4462-2716 Milan Representative Office Jakarta Office Viale Della Liberazione 16/18, 20124 Milan, Italy 9th Floor, Mid-Plaza Bldg., Jalan Jenderal Te l : (39) 02-303517-111 Sudirman Kav. 10-11, Jakarta 10220, Indonesia Fax: (39) 02-303517-35 Singapore 079903 Te l : (65) 6324-0080 Fax: (65) 6324-0090 The Hague Representative Office Parkstraat 83, 2514 JG The Hague, The Netherlands Te l : (31) 70-385-9453 Fax: (31) 70-346-3779 Te l : (62) 21-570-7579 Fax: (62) 21-570-6276  CHIYODA CORPORATION ANNUAL REPORT 2010  The Netherlands Italy Korea Japan U.S.A. China Saudi Arabia Myanmar India U.A.E. Qatar Philippines Thailand Malaysia Singapore Head Office Indonesia Overseas Offices Major Subsidiaries & Affiliated Companies Australia Brazil Overseas Subsidiaries & Affiliated Companies Chiyoda Almana Engineering LLC Chiyoda Oceania Pty Limited Chiyoda Singapore (Pte) Limited 12th Floor, Al-Qassar Tower, Level 28, AMP Tower 140 St Georges Terrace, 14 International Business Park Jurong East, Taawon Street, West Bay, P.O. Box 22961, Perth WA 6000, Australia Doha, Qatar Te l : (974) 4407-4660 Fax: (974) 4407-4650 Te l : (61) 8-9278-2599 Fax: (61) 8-9278-2727 Singapore 609922 Te l : (65) 6563-3488 Fax: (65) 6567-5231 URL: http://www.chiyoda.com.sg/ URL: http://larryalam.com/Chiyoda/index.html Chiyoda Petrostar Ltd. Chiyoda Corporation (Shanghai) Prince Turki Street, Corniche, Al-Khobar 140/42 ITF Tower II, 20th Floor, Room 606, UC Tower, No. 500, P.O. Box 31707 Al-Khobar 31952 Silom Road, Kwaeng Suriyawong, Fushan Road, PuDong New Area, The Kingdom of Saudi Arabia Khet Bangrak, Bangkok 10500, Thailand 3rd Floor, Gulf Center Building, Chiyoda (Thailand) Limited Shanghai 200122, China Te l : (86) 21-6876-1500 Fax: (86) 21-6876-1300 Te l : (966) 3-864-0839 Fax: (966) 3-864-0986 Te l : (66) 2-231-6441/6442 Fax: (66) 2-231-6443 Chiyoda do Brasil Representações Ltda. 15~21F Sun Plaza Building 1507 B.P. Estate National Highway No. 8, Praia de Botafogo, 228 Sala 501-Botafogo Shaw Boulevard cor. Princeton Street, Chhani Baroda-391740, Gujarat State, India CEP 22250-040 Rio de Janeiro-RJ-Brazil Barangay Wack-Wack Te l : (91) 265-2771003/2772855 Chiyoda Philippines Corporation L&T-Chiyoda Limited Te l : (55) 21-3738-8280 Fax: (55) 21-3738-6835 Mandaluyong City 1555, Philippines Fax: (91) 265-2774985 Te l : (63) 2-571-7596 Fax: (63) 2-571-7599 URL: http://www.lntchiyoda.com/ Chiyoda International Corporation URL: http://www.chiyodaphil.com.ph PT. Chiyoda International Indonesia Chiyoda & Public Works Co., Ltd. Sudirman Kav. 10-11 Jakarta, 10220, 9th Floor, Mid-Plaza Bldg., Jalan Jenderal Room 308~309, Sedona Hotel No. 1, Kaba Aye Pagoda Road, Yankin Township, Yangon, Myanmar Te l : (95) 1-545605 Fax: (95) 1-545227 Indonesia Te l : (62) 21-570-4693 Fax: (62) 21-573-5723 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. 15th Floor, Menara Maxisegar, Jalan Pandan Indah 4/2, Pandan Indah, 55100 Kuala Lumpur, Malaysia Te l : (60) 3-4297-0988 Fax: (60) 3-4297-0800 URL: http://www.chiyoda.com.my/ CHIYODA CORPORATION ANNUAL REPORT 2010  Corporate Information (As of March 31, 2010) Chiyoda Corporation Head Office Annual Fiscal Close Transfer Agent of Common Stock 12-1, Tsurumichuo 2-chome, Tsurumi-ku, March 31 Mitsubishi UFJ Trust and Banking Yokohama 230-8601, Japan Tel: (81) 45-521-1231 Fax: (81) 45-503-0200 Established January 20, 1948 Paid-in Capital ¥43,396 million Shareholders’ Meeting 1-4-5 Marunouchi, Chiyoda-ku, Tokyo Corporation June Authorized Shares Number of Shares per Unit 650,000,000 1,000 Capital Stock Issued Stock Code 260,324,529 ISIN: JP3528600004 SEDOL 1:6191704 JP Number of Shareholders Number of Employees TSE: 6366 1,281 (Non-Consolidated) 3,670 (Consolidated) 14,069 URL http://www.chiyoda-corp.com/en/ Organization Chart CSR Division Operational Auditing Office Shareholders’ Meeting Corporate Auditors Committee Board of Directors Executive Committee SQE Division Corporate Planning, Management & Finance Corporate Planning Division Corporate Services & HRM Division Corporate Communication Division Finance Division Project Management Administration Division Technology & Engineering Projects Logistics & Construction Technology Planning & Administration Office Research Institute of Technology Innovation & Strategy PC Planning & Administration Office Engineering Operation Division Process Engineering Division/ Gas & LNG Process Engineering Division/ Refinery, Petrochemical & New Energy Mechanical Engineering Division Electrical and Control System Engineering Division Piping and Civil Engineering Division Procurement Division Construction Division Project Operations Business Development Operation Project Plannning & Administration Office Business Managers Office Domestic Project Division 1 Domestic Project Division 2 Project Management Service Division International Project Division 1 Group Operation Division Business Development Management Division Business Development Division 1 Business Development Division 2 International Project Division 2 International Project Division 3 International Project Division 4 Technology Development Business Operation Technology Development Business Planning & Administration Office Strategic Business Development Division Technology Development Division Green Technology Project Division Pharmaceutical & Environmental Project Division (As of July 1, 2010)  CHIYODA CORPORATION ANNUAL REPORT 2010  Major Shareholders Number of Shares Owned ( Thousands of shares) Ratio of Number of Shares Owned to Aggregate Number of Shares Issued (%) Breakdown by Shareholder Mitsubishi Corporation The Master Trust of Japan, Ltd. (Trust Account) The Bank of Tokyo-Mitsubishi UFJ, Ltd. Japan Trustee Services Bank, Ltd. (Trust Account) Mitsubishi UFJ Trust and Banking Corporation The Bank of New York, Treaty JASDAEC Account Japan Trustee Services Bank, Ltd. (Trust Account 9) JP Morgan Securities Japan Co., Ltd. Tokio Marine & Nichido Fire Insurance Co., Ltd. Meiji Yasuda Life Insurance Co. 86,931 16,857 9,033 8,224 8,032 4,534 3,851 2,952 2,760 2,549 33.53 6.50 3.48 3.17 3.09 1.75 1.48 1.13 1.06 0.98 11.04% 26.48% 21.13% Total 260,324 thousand 2.69% 9% 14% 77% 38.65% Financial institutions Securities companies Other corporations Foreign investors and others Individuals and others 12.94% 23.38 % Total 260,292 thousand 22.90 % 1.85% 38.93% Monthly Stock Price Range on the Tokyo Stock Exchange (Yen) 3,600 2,400 1,200 0 (Yen) 24,000 Share Price (left) Volume Nikkei Stock Average (right) 16,000 8,000 (Thousands of shares) 160,000 80,000 0 2005 4 5 6 7 8 9 10 1112 2006 1 2 3 4 5 6 7 8 9 10 1112 2007 1 2 3 4 5 6 7 8 9 10 1112 2008 1 2 3 4 5 6 7 8 9 10 1112 2009 1 2 3 4 5 6 7 8 9 10 1112 2010 1 2 3 4 CHIYODA CORPORATION ANNUAL REPORT 2010  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 Annual Report 2010 For the year ended March 31,2010 

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