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project management expertise. This we plan to achieve through application of Plant Lifecycle Engineering, or PLE, which comprises the wealth of plant engineering information and know-how Chiyoda Corporation has gathered over the decades. Using PLE, we can propose advanced solutions to our clients for their plants, which are often their most important assets. We assist our clients in enhancing the value of their assets throughout the entire lifecycle – from planning through construction, operation, maintenance, and even calculate necessary improvements and modernization – and help our clients achieve a greater return. In the process, we will continually enhance and update our database and engineering assets, which will enable us to continue to propose the most advanced, effec- tive plant business models to our clients. 

We plan to increase bookings through our “Natural Gas Value Chain” marketing strategy, which will allocate corporate resources intensively to natural gas-based pro- jects. This will take advantage of the fact that natural gas producing countries are expanding utilization of their nat- ural resources. This will mean increased production of liq- uefied natural gas (LNG) as well as a movement into gas- based chemicals and gas-to-liquids (GTL) production. We will use our PLE approach for natural gas projects as well. 

Our customers recognize the expertise and knowledge we bring to a project, which allows us to present plans with the foresight to use cutting-edge technology and pro- ject management expertise. Through our PLE approach, we will build long-term relationships and mutual trust with our clients. And our PLE approach should enable us to contribute to the sustainable development of our clients and of society. 

## A look at the future 

International issues such as the general strike in Venezuela, the war in Iraq, and SARS in Asia may have prevented us from achieving our near-term targets. 

However, most of the issues are being resolved, so I am comfortable with the economic outlook, and see Chiyoda working in the industry for the long haul. 

I firmly believe that we as a company are nearly to the apex of the hill. We have recovered from our past errors and are looking at a bright future. We have an important slogan to remind us of what we should be doing – “Recognize change and find opportunity in it.” If we take this slogan to heart, we will never again be caught in the straits of uncertainty that can drag a company down finan- cially. To protect against a financial downturn, Chiyoda Corporation will also establish and maintain effective man- agement control systems – including integrated budget controls, severe screening, monitoring, and audit controls for handing projects, and making maximum use of IT capabilities. 

Another key to our coming growth was the formation of Chiyoda Advanced Solutions Corporation (ChAS) in 2002. This wholly owned subsidiary specializes in provid- ing cutting-edge technological consulting services with highly advanced analytical skills that are based on our Group’s engineering assets. The launch went smoothly, and ChAS posted a profit in its very first fiscal year. 

I am resolved to eliminate accumulated losses and to start paying dividends again soon. We truly appreciate your continued support and look forward to serving you in the future. 

June 25, 2003 

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