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To Our Stakeholders

Thank you for your continued support over the past 12 months.

We present Chiyoda Group’s corporate overview for the fiscal year ended March 31, 2015, the halfway our Medium-Term management Plan entitled “Seize the moment, Open up New Frontiers”.

As a result of implementing various measures in accordance with the growth strategies and operation foundation strategies defined in the Plan, we have achieved impressive results, especially in the LNG and gas related field, or our core business. An LNG plant in Papua New Guinea, and LNG receiving terminal projects in Japan were successfully completed. Now we are moving forward with the Engineering, Procurement and Construction (“EPC”) works in Australia, the USA, Russia and Japan. All of them are progressing steadily. As the global market environment in this field is becoming more uncertain in the short-term, we have to carefully explore the possible market opportunities while continuing to build our technical expertise to strengthen and maintain our competitiveness.

In the Petroleum, Petrochemicals and Gas chemical field, which is also our core business, we have maintained stable operations. Several projects in Japan and a large scale complex in Saudi Arabia have also been completed successfully. In this field, the Group will aim to earn handsome profits by implementing measures to select and concentrate on business opportunities in Asia and the Middle East and by seeking projects which inevitably require our own technologies.

In the new business field in which we have been taking several measures, we have achieved good results including two EPC contracts for an airport as social infrastructure and an Engineering, Procurement, Construction and Installation (“EPCI”) contract in the offshore/ upstream field. The Group will continue and accelerate the business development to produce more profits early.

In the pharmaceutical industry, the Group was newly awarded EPC works for manufacturing facilities of active pharmaceutical ingredients and vaccines. The Group aims to advance into the life science field by enhancing our function to provide advanced solutions.

In these two years, the business environment surrounding the Group has changed drastically, such as a plunge in oil prices. Now is the time for the Group to “seize the moment”, create new added value and “open up new frontiers”.

We ask all of our shareholders for their continued support in our ongoing efforts.

Sincerely yours,

Shogo Shibuya, President & CEO
Chiyoda Corporation

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