Slide 1: Management Briefing for Second Quarter of Fiscal Year 2025
Management Briefing for Second Quarter of Fiscal Year 2025 November 6, 2025 Hiroshi Ide President and Chief Executive Officer © IHI Corporation All Rights Reserved.
Slide 2: Contents
Contents 1. Progress of Group Management Policies 2023 2. The future direction of each Business Area © IHI Corporation All Rights Reserved. 2
Slide 3: 1. Progress of Group Management Policies 2023
１． Progress of Group Management Policies 2023 © IHI Corporation All Rights Reserved. 3
Slide 4: Main Initiatives for Group Management Policies 2023
Main Initiatives for Group Management Policies 2023 Expanded the Growth Businesses Launched full-scale operation of a new facility to expand Civil aero engine maintenance business Participating as the engine contractor in the Japan, UK and Italy`s joint next-generation fighter Strengthening de
Slide 5: Main Financial KPIs
Achievements for Group Management Policies 2023 Main KPIs Set to Hit Record Highs Main Financial KPIs (Forecasts of FY2025) Sustainable growth Profitability and efficiency CF from Orders operating activities Record High Revenue Operating margin Record High Operating profit ROIC Record High ※Changes
Slide 6: Progress of Group Management Policies 2023: Final stage of structural reform
Progress of Group Management Policies 2023 Final stage of structural reform: Entering a New Growth Phase in the next fiscal year Structural reforms are nearing completion; remaining initiatives are strengthening the balance sheet and allocating resources to the Growth businesses From the next fi
Slide 7: 2. The future direction of each Business Area
２． The future direction of each Business Area © IHI Corporation All Rights Reserved. 7
Slide 8: (1) Resources, Energy & Environment Business Area
(1) Resources, Energy & Environment Business Area © IHI Corporation All Rights Reserved. 8
Slide 9: Resources, Energy & Environment: Scaling Up Our Business
Resources, Energy & Environment Business Area The future direction Scaling Up Our Business: Boosting Cash Flow with LCB, Powered by Nuclear Energy Orders increased significantly in the Nuclear energy, Power systems, and Carbon solution domestic businesses, driven by our initiatives for business gr
Slide 10: Carbon solution business (Overseas)
Resources, Energy & Environment Business Area Carbon solution business (Overseas) Restructured Business Overseas Subsidiaries with Declining Performance: Direction to Be Decided This Fiscal Year Due to changes in the external environment, the performance of overseas subsidiaries in Carbon solution
Slide 11: Power systems business: Driving Profitability Toward a 10% Operating Margin
Resources, Energy & Environment Business Area Power systems business Stable revenue base Business Driving Profitability Toward a 10% Operating Margin Through comprehensive structural reforms, the operating margin has achieved a V-shaped recovery since FY2022 Further strengthening profitability i
Slide 12: Nuclear energy business: Expanding with World-Class Advanced Technology
Resources, Energy & Environment Business Area Nuclear energy business Growth Business Expanding the Nuclear Business with World-Class Advanced Technology World-class manufacturing technologies and capabilities in pressure vessel and other key components for NPPs The only player in Japan with hig
Slide 13: Nuclear energy business: Strong Orders Driven by Strong Demand
Resources, Energy & Environment Business Area Nuclear energy business Growth Business Strong Orders Driven by Strong Demand: Revenue Target to Be Achieved Ahead of Schedule Currently, the restart and nuclear fuel reprocessing businesses are performing well. After the completion of the reprocessing
Slide 14: (2) Social Infrastructure Business Area
(2) Social Infrastructure Business Area © IHI Corporation All Rights Reserved. 14
Slide 15: Social Infrastructure: Driving Profitable Growth, Especially in Bridges
Social Infrastructure Business Area The future direction Driving Profitable Growth with Technical Expertise, Especially in Bridges Business Through structural reforms, we are focusing on projects where we can leverage our strengths, resulting in a significant improvement in operating margins In
Slide 16: Bridges and water gates: Steady 10%+ Operating Margins
Social Infrastructure Business Area Bridges and water gates business Stable revenue base Business Building a Business Structure for Steady 10%+ Operating Margins Until FY2025, we have prioritized improving operating margins by selectively focusing on projects In the coming years, we will aim to
Slide 17: (3) Industrial Systems & General-Purpose Machinery Business Area
(3) Industrial Systems & General-Purpose Machinery Business Area © IHI Corporation All Rights Reserved. 17
Slide 18: Industrial Systems & General-Purpose Machinery: Higher Profitability and Stable Cash Flow
Industrial Systems & General-Purpose Machinery Business Area The future direction Achieving Higher Profitability and Stable Cash Flow Growth Through structural reforms such as focusing on highly profitable models and strengthening LCB, the profitability of each business has improved We will maxi
Slide 19: Vehicular turbochargers: Structural Reforms Led to Early Profitability Improvement
Industrial Systems & General-Purpose Machinery Business Area Vehicular turbochargers business Stable revenue base Business Structural Reforms Led to Early Profitability Improvement By optimizing production sites, including the closure of overseas facilities, we have reduced fixed costs In additi
Slide 20: (4) Aero Engine, Space & Defense Business Area
(4) Aero Engine, Space & Defense Business Area © IHI Corporation All Rights Reserved. 20
Slide 21: Aero Engine, Space & Defense: Accelerating Toward 1 Trillion Yen Revenue
Aero Engine, Space & Defense Business Area The future direction Accelerating Toward 1 Trillion Yen Revenue Milestone We will continue to prioritize the allocation of management resources to Civil aero engines and Defense aero engines and equipment business, ensuring the capture of robust demand
Slide 22: Civil aero engines: Driving Remarkable Growth
Aero Engine, Space & Defense Business Area Civil aero engines business Growth Business Driving Remarkable Growth via Fundamental Production and Supply System Enhancement With rising aircraft demand, the business is expected to experience substantial growth, mainly in the aftermarket With the aim
Slide 23: Defense aero engines and equipment business
Aero Engine, Space & Defense Business Area Defense aero engines and equipment business Growth Business Further contributions to the Japanese government's policy of “Fundamental Reinforcement of Defense Capabilities" In the short to medium term, revenue of solid rocket motors and UUVs* is expected
Slide 24: Moving forward to the next management plan
Moving forward to the next management plan © IHI Corporation All Rights Reserved. 24
Slide 25: Forward-looking statements
Forward-looking figures shown in this material with respect to IHI’s performance outlooks and other matters are based on currently available information, and therefore contain risks and uncertainties. Consequently, you should not place undue reliance on these performance outlooks in making investmen