Ihi CorporationTSE: 7013

Results for the Fiscal Year Ended March 31, 2017 Management Review

May 9, 2017 at 9:05 AM UTC · Issued by IHI Corporation

Results for the Fiscal Year Ended March 31, 2017 Management Review

May 9, 2017

Tsugio Mitsuoka, President and Chief Executive Officer

Contents

Forecasts 18

Key Companywide Initiatives. 21

Strengthening Our Earnings Foundations 22

Reaching Our Targets. 25

Creating New Customer Value. 27

Management Overview

Review of Year Ended March 31, 2017 (1)

Targets	Results
Net Sales	¥1,600.0 billion	¥1,486.3 billion
Operating Income (Operating Margin)	¥65.0 billion 4.1%	¥47.3 billion 3.2%
Ordinary income	¥55.0 billion	¥22.0 billion
Profit Attributable to Owners of the Parent	¥30.0 billion	¥5.2 billion
ROIC	6.5%	5.0%
D/E Ratio	－	1.10
Dividends	¥6 per share (¥3 interim, ¥3 year-end)	－
Exchange Rate	¥110/US$	¥108.27/US$

* ROIC (Return On Invested Capital) = (Operating income + Interest and dividend income) after tax / (Owners' equity + Interest-bearing debt)

* D/E ratio = Interest-bearing debt / Total net assets

Assessment

Made progress in some areas under Group Management Policies 2016
- Accelerated business structure reforms and concentration and selection under new portfolio management approach
- Attained initial earnings targets in Industrial Systems and General-Purpose Machinery and in Aero-Engine, Space and Defense
As in the previous year, however, performances declined in current large projects
Ongoing efforts to reinforce our project implementation structure and management are top priorities