Consolidated Statements of Cash Flows Chiyoda Corporation and Consolidated Subsidiaries Years Ended March 31, 2003 and 2002 OPERATING ACTIVITIES: Income before income taxes and minority interests....................................................... ¥ 2,509 ¥ 1,861 $ 20,908 Adjustments for: Income taxes paid ................................................................................................... (790) (1,718) (6,583) Depreciation and amortization ................................................................................ 1,226 1,026 10,217 Reversal of allowance for doubtful accounts — net ................................................. (968) (193) (8,067) Provision for contingent loss.................................................................................... 800 6,667 Provision for investment loss.................................................................................... 264 2,200 Provision for (reversal of) retirement benefits — net ................................................ 1,157 (305) 9,642 Reversal of additional retirement benefit to employees ............................................ (964) Gain on sales of investment in subsidiaries .............................................................. (315) (1,385) (2,625) Loss on devaluation of golf club membership .......................................................... 294 3 2,450 Gain on discharge of liabilities ................................................................................. (2,871) Gain on sale of intellectual property right ................................................................ (800) Foreign exchange loss (gain) — net ......................................................................... 916 (493) 7,633 Equity in earnings of associated companies ............................................................. (1,000) (526) (8,333) Changes in operating assets and liabilities: Decrease in notes and accounts receivable and costs and estimated  earnings on long-term construction contracts.................................................. 1,144 4,652 9,533 Decrease in costs of construction contracts in process ........................................ 2,805 8,959 23,375 Decrease in interest and dividend receivable ....................................................... 1,217 759 10,142 Increase (decrease) in trade notes and accounts payable..................................... 6,168 (1,695) 51,400 (Decrease) increase in advance receipts on construction contracts....................... (8,541) 3,078 (71,175) Other — net............................................................................................................ 53 1,030 441 Total adjustments.......................................................................................... 4,430 8,557 36,917 Net cash provided by operating activities....................................................... 6,939 10,418 57,825 INVESTING ACTIVITIES: Proceeds from sales of investment securities ................................................................. 8 1,152 67 Proceeds from sales of investment in subsidiaries.......................................................... 116 749 967 Purchase of investment securities.................................................................................. (118) (501) (983) Purchases of property, plant and equipment................................................................. (296) (484) (2,467) Proceeds from sales of property, plant and equipment.................................................. 142 112 1,183 Disbursements for originating loans.............................................................................. (638) (685) (5,316) Proceeds from collections of loans ................................................................................ 193 1,608 Other — net................................................................................................................. (280) (548) (2,334) Net cash used in investing activities ............................................................... (873) (205) (7,275) FINANCING ACTIVITIES: Net decrease in short-term bank loans.......................................................................... (8,718) (5,266) (72,650) Proceeds from long-term debt ...................................................................................... 9 80 75 Repayments of long-term debt ..................................................................................... (793) (698) (6,608) Other — net................................................................................................................. (42) 8 (350) Net cash used in financing activities .............................................................. (9,544) (5,876) (79,533) FOREIGN CURRENCY TRANSLATION ADJUSTMENTS ON CASH AND CASH EQUIVALENTS ..... (459) 428 (3,825) NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS ............................................... (3,937) 4,765 (32,808) CASH AND CASH EQUIVALENTS OF NEWLY (EXCLUSION OF) CONSOLIDATED  SUBSIDIARIES, BEGINNING OF YEAR ......................................................................... 200 (1) 1,667 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR ..................................................... 38,677 33,913 322,308 CASH AND CASH EQUIVALENTS, END OF YEAR .......................................................... ¥ 34,940 ¥ 38,677 $ 291,167 Millions of Yen 2003 2002 Thousands of U.S. Dollars (Note 1) 2003 See notes to consolidated financial statements. 31