Chiyoda Announces Its Financial Results for the Fiscal Year Ended March 31, 2009 and Its New Medium-Term Management Plan.

YOKOHAMA, Japan -- Chiyoda Corporation (TOKYO:6366)(ISIN:JP3528600004), Japan's leading engineering and construction firm, today announced its consolidated financial results for the fiscal year ended March 31, 2009, and its medium-term management plan for the four year period beginning fiscal year 2009 (the fiscal year ending March 31, 2010).

New contracts on a consolidated basis were 209,422 million yen, a 19.1% decrease compared with the previous fiscal year, and the backlog of contracts decreased 36.6% to 425,043 million yen. Revenues decreased 26.0% to 446,438 million yen. Operating income decreased 18.2% to 7,227 million yen, ordinary income decreased 40.1% to 11,449 million yen and net income decreased 32.6% to 6,498 million yen. Net income per share was 25.58 yen. Chiyoda plans to pay a year-end dividend of 7.50 yen per share.

Regarding the market environment for Chiyoda during the fiscal year ended March 31, 2009, major crude oil and natural gas producing countries as well as energy majors had planned substantial capital investment. However, with a downturn in the product market, shrinking demand and other effects of the rapidly worsening economy, conditions became uncertain, including a growing trend toward revising timing and other conditions of investment.

Under these circumstances, Chiyoda made concentrated efforts to properly execute ongoing projects. These efforts included completing and handing over the first liquefied natural gas (LNG) plant in Russia and the first of six trains of the ultra-large-scale LNG plants (7.8 million tones per annum each) in Qatar.

For the fiscal year ending March 31, 2010, Chiyoda forecasts consolidated new contracts of 440,000 million yen, revenues of 320,000 million yen, operating income of 7,500 million yen, ordinary income of 9,000 million yen and net income of 5,000 million yen. Chiyoda plans to pay a year-end dividend of 6.00 yen per share. The assumed exchange rate is 95.0 yen to the U.S. dollar.

In addition, Chiyoda announced its new medium-term management plan, "Engineering Excellence, Value Creation" to help Chiyoda further raise corporate value. The medium-term plan begins in fiscal year 2009 (ending March 31, 2010), and runs through fiscal year 2012 (ending March 31, 2013).

The earnings target on a consolidated basis for the final year of the plan, fiscal year 2012, is net income of 23,000 million yen. To achieve this target, Chiyoda assumes that revenues, operating income and ordinary income will be 550,000 million yen, 34,000 million yen and 38,000 million yen, respectively, for the fiscal year 2012.

Because the current operating environment makes forecasts difficult, we will work toward the targets we have set for the final year of the plan while disclosing annual plans at the beginning of each fiscal year. Chiyoda will try to pay stable dividend linked with performance, with a target consolidated payout ratio of 30%.

For details of the plan, please visit our website at http://www.chiyoda-corp.com