“Mirai Engineering” a Grand Opportunity for the Future
Total Page：16
File Type：pdf, Size：1020Kb
“MIRAI ENGINEERING” A GRAND OPPORTUNITY FOR THE FUTURE ANNUAL REPORT FY2016 For the year ended March 31, 2017 CHIYODA CORPORATION ANNUAL REPORT FY2016 PROFILE Chiyoda Corporation is a leading integrated engineering and construction company with a signifi cant INDEX presence in the global oil and gas market, and customers in more than 60 countries. Especially in the fi eld 02 Profile 19 Topics 39 Risk Management of LNG plant engineering and construction, we are a global leader, with a track record of undertaking 03 At a Glance 21 Chiyoda’s ESG Initiatives 41 Corporate Information projects that account for around 40% of the world’s total LNG plant capacity. 05 To Our Shareholders 31 Corporate Governance 43 Stock Information Established in 1948, Chiyoda started with domestic projects in petroleum refining, petrochemicals 11 Financial Highlights 35 Directors & Officers and gas processing. Since the 1970s, Chiyoda has developed a powerful global footprint, taking 13 Business Overview 37 Corporate Governance Dialogue advantage of the many opportunities in the engineering, procurement and construction of energy- related plants, while building a first-class reputation for technological capability, safety and reliability. 2017 During its 70-year history, the Chiyoda Group has been growing steadily under the corporate Order awarded for the pilot plant for production of renewable jet and diesel philosophy of enhancing business by aiming for harmony between energy and the environment, while fuels for euglena Co., Ltd. in Japan contributing to the sustainable development of society. In addition, Chiyoda has expanded business 2003 Order awarded for Sakhalin ll LNG Project into the offshore and upstream sectors, new energy and renewable energies. by Sakhalin Energy in Russia, the first LNG Plant in Russia 1960 1971 Order awarded for Order awarded for LNG Project Mitsubishi Oil Mizushima on Das island, Abu Dhabi, 2001 Gained ISO14001 Refinery Project the first LNG Project for us 2014 Order awarded for Cameron LNG Project in the US and Yamal LNG Project in Russia 2004 Order awarded for Qatargas II LNG Project in Qatar, 1961 the largest LNG plant 1948 (Production Capacity per Train: 7.8 million ton/year) Foundation of the Company Moved up to the First Section of the Tokyo Stock Exchange 2013 1980 Confirmed proof of concept for Order awarded for Petromin SPERA Hydrogen, Mobil Yanbu Export Refinery a system and technology for Project in Saudi Arabia massive H2 storage and transportation 1993 2009 Order awarded for Qatargas Order awarded for Papua New Guinea 1949 1957 1965 LNG Project in Qatar LNG Project Won the first order for Listed on the Second Order awarded for a cracking plant of Section of the Tokyo Petromin Jeddah Koa Oil Company Stock Exchange Refinery Project in Saudi Arabia 1948 1958 1968 1978 1987 1988 1998 2008 2018 1st decade 2nd decade 3rd decade 4th decade 5th decade 6th decade 7th decade 01 02 CHIYODA CORPORATION ANNUAL REPORT FY2016 AT A GLANCE FY2016 FY2016 FY2016 Chiyoda Corporation is a world-leading, integrated engineering and construction company. Backlog of Revenues New Orders Contracts The Chiyoda Group has developed its cutting-edge technology in this highly challenging industry Japan and a wealth of experience throughout the last seven decades. 603.7 351.8 876.8 Overseas The Chiyoda Group provides excellent services backed by ample experience and technical billions of yen billions of yen billions of yen knowledge, while striving for vital business with “Energy and Environment in Harmony.” Existing major projects and key data are reflected on this page. MAJOR PROJECTS IN PROGRESS (As of March 2017) Yamal LNG 65.51 mil. More than Safe man-hours without LTI* 5,300 ~40% in PNG LNG Project employees of the world’s total Business Field LNG plant capacity LNG/Gas New Ulaanbaatar Petrochemical/Refi nery International Airport Metal Offshore Infrastructure EPC: Engineering, Procurement Cameron LNG Titanium Sponge Plant Freeport LNG and Construction FEED: Front-end Engineering RasGas Helium 3 Refi nery and Design New Bohol Airport More than *LTI: Lost time incident RAPID 800 Non-hydrocarbon Tank Terminal More than Copper Smelter Tangguh Tr. 3 Jangkrik FPU 1,800 Mozambique Area 1 Ichthys More than More than 3,000 projects More than Petrochemicals 60 countries More than (Plant design & construction) Domestic receiving 20 locations 500 LNG terminals (including major overseas subsidiaries & affi liated 75 companies) 03 04 CHIYODA CORPORATION ANNUAL REPORT FY2016 TO OUR SHAREHOLDERS The world is facing major challenges today, including climate change, the digital revolution and changes in the structure of energy supply and demand. Many of these issues affect us deeply here at Chiyoda Corporation but my personal philosophy is that change offers unique, often ideal, opportunities for organizations to adapt and to embrace the chance to reorient the Company for future success. I am confident in these prospects and would like to share my clear vision of what should be expected by our customers, our shareholders and our employees. I am Masaji Santo. It is my great honor and privilege • Consolidation of Resources—enhancing competi- to have become CEO of Chiyoda Corporation. tiveness and reinforcing the profitability of the entire We just published Chiyoda’s new Medium-Term Chiyoda Group as keys to the Group’s future Management Plan, “Mirai Engineering—A Grand development. To achieve this, we will fully develop Opportunity for the Future,” a four-year strategy the human resources of all the Group companies. blueprint for our business development based on a Masaji Santo thorough analysis of macrotrends and assessment of This will be challenging, but when I consider President & CEO the previous management plan. Chiyoda’s major assets—reputation, experience, For the initial two years we will prioritize structural financial stability and, above all, employees’ exper- reforms to create a solid management base and tise—I am confident that we will succeed. Critical to simultaneously pursue a growth strategy. Specific our success is the concept of “Chiyoda—One Team,” plans for growth are (1) building an energy value with management and all employees striving together chain business, (2) expanding the global environmen- to enrich the sustainable corporate value of the entire tal business and (3) developing a new business Chiyoda Group and respond to the needs and model for the digital society. expectations of all clients, shareholders and other In preparing for my role as CEO of Chiyoda I have stakeholders. decided on three major themes to serve as the I believe valuing that relationship and strengthen- foundation for a turnaround: ing the connection to our shareholders through continuous interactions and consultations will be • Challenges Bring Opportunities—using the cycles major ways to create an open dialogue with all in global energy markets and recent financial stakeholders. I look forward to the challenges to challenges at Chiyoda to restructure our business come and to your continued support. in a strong, risk-resilient manner; • How to Change Our Company—putting greater Respectfully yours, focus on allocation of resources, including during the post-EPC phase of our projects, more empha- sis on environment-friendly facilities and methodol- ogies and the use of artificial intelligence (AI) to increase efficiency and effectiveness; August 2017 05 06 CHIYODA CORPORATION ANNUAL REPORT FY2016 Key Management Issues over the Medium Term “MIRAI ENGINEERING” —A GRAND OPPORTUNITY FOR THE FUTURE— Chiyoda Group has released a new medium-term management plan, STRUCTURAL REFORM “MIRAI ENGINEERING—A GRAND OPPORTUNITY FOR THE FUTURE” for the period (1) Further strengthen risk management fi xed costs with the aim of balancing basic earnings starting from fiscal year 2017 to 2020 (the MTMP). The aim of the MTMP is for Chiyoda capabilities and costs, and redefi ne the domestic and global Group to be a global top-tier “Integrated Engineering and Service Provider” in the fields of We will strengthen the structure for execution and operational structure. energy and environment. profi tability management of EPC projects on a consolidated basis. We will also establish a structure (3) Further expand human resource base for expansion of business fi elds and the transforma- To reinforce our technical strength and project tion of the business model. execution capabilities, we will realign the human Assessment of the previous New medium-term resource development system with a medium- to medium-term management plan management plan (2) Increase basic earnings strength and long-term outlook and implement optimal assignment 1 “SEIZE THE MOMENT, 2 “MIRAI ENGINEERING enhance resilience to downturns of human resources for continuous earnings growth. OPEN UP NEW FRONTIERS” — A GRAND OPPORTUNITY We will seek to expand basic earnings by reinforcing Through these efforts, we will foster a stronger corpo- (the previous MTMP) FOR THE FUTURE” technological strength and project execution capabili- rate culture and foundation with high loyalty and a ties and cost competitiveness, reduce consolidated willingness to pursue new challenges. The previous MTMP during the period Given macrotrends such as changes in from fi scal year 2013 to 2016 was the supply and demand structure for executed and, as a result, the Chiyoda energy, heightened awareness of the GROWTH STRATEGY Group maintained its No. 1 position in global environment and digital LNG and steadily progressed in new innovation driving changes in industrial (1) Expansion of business fi elds and transfor- two key business fi elds of “energy” and the “environ- business areas including life science structure, Chiyoda Group will mation of the business model ment.” And we aim to innovate EPC execution and and new energy. However, the Chiyoda 1) provide technological strength and The fi elds of EPC, LNG, gas, petroleum, chemicals diversify our business into investment and service Group now faces challenges such as project execution capabilities, as and metal resources will remain the Chiyoda Group’s areas by utilizing innovative digital technologies.