Ishii Iron Works Co., Ltd.

FY2023Financial Results
Presentation Materials
May 30, 2023

INDEX
1

Company Management Policies

2

Progress of Medium-term Management Plan
and Future Strategies

3

Overview of Results for FY2023

4

Earnings Forecast for FY2024

APPENDIX©ISHII IRON WORKS CO.,LTD. All rights reserved.

2

1

Company Management Policies©ISHII IRON WORKS CO.,LTD. All rights reserved.

3

Company Management Policies

Message from the new President
Based on our management philosophy to “contribute tosociety through our business and seek higher corporate value
through engineering that meets social needs andmanufacturing with a sincere attitude," we have supported thedevelopment of the energy and petrochemical industries as amaker of tanks and plants by meeting their needs with ourengineering.
As the world moves toward a carbon-neutral society, ourdesire is to contribute to green transformation (GX) throughour business.

Apr. 1996 Joined Shimizu Corporation

ISHII IRON WORKS
CO., LTD.
Hiroaki ISHII,
Representative
Director and President

May 2006 Advisor of the Company
June 2006 Director of the Company
July 2012 Managing Director of the Company
Apr. 2020 Executive Director of the Company
Mar. 2023 Representative Director and Presidentof the Company (present position)©ISHII IRON WORKS CO.,LTD. All rights reserved.

4

Company Management Policies

Management philosophy
Contribute to society through our business. Seek higher corporate
value through engineering that meets social needs andmanufacturing with a sincere attitude.

Steel Structure
Business

Real EstateBusiness

And now, to a company that contributes to GX
through engineering.

GX: Green Transformation©ISHII IRON WORKS CO.,LTD. All rights reserved.

5

Company Management Policies

Establishment of GX Business Division
Newly set up GX Business Divisionin April 2023
Participating in the next-generation energy market,
a promising path to carbon neutrality
 Demand is growing in Japan and overseas for switching fromfossil fuels to energies with less environmental impact, suchas renewable energy, hydrogen, and ammonia. Amid this, wewill enter the next-generation energy business and build anew, stable business foundation
 The new organization is designed to unify GX-related sections
and strengthen technical development and construction
capabilities through prompt and agile business operations to
win orders and increase profitability©ISHII IRON WORKS CO.,LTD. All rights reserved.

6

Company Management Policies

New Steel Structure Business organization
Scope of business for GX Business Division and existing sections

GX Business Division

GX Business Division

Engineering
Department
Construction and
Manufacturing
Department

Main scope ofbusiness

Proposal andProcurement
Department
Technical ResearchCenterDomestic Business
Department

Overseas Business
Department• Estimation, design, andconstruction study for new
construction and modificationof low-temperature tanks,
spherical tanks, etc.

Mainly projects related tonormal temperature andatmospheric storage tanks• Design work for new
construction and maintenanceof petroleum tanks, etc.

• Research and development

Specific construction work

Steel Structure
Business
Headquarters

Storage plant projects related to
GX in Japan and overseas

Existing sections

New
construction

Renovation/
maintenanceConstruction of domestic andoverseas GX-related lowtemperature/spherical tanks andancillary facilities• Seismic reinforcement ofexisting spherical tanks• Conversion/renovation ofexisting low-temperature tanks,
etc.

Construction of petroleum
tanks, etc.

Maintenance of petroleum
tanks, etc.

©ISHII IRON WORKS CO.,LTD. All rights reserved.

7

Company Management Policies

Forecast of the business environment and its impact
Steel Structure Business

Degree of business and financial impact

Content

Opportunities

リスク
Risks

Short-term

Medium to longterm

Expanding of new energy markets through carbon neutrality

Large

Large

Increasing renovation of plant equipment due to plant aging

MediumMediumDeclining workforce and experienced engineers

MediumMediumResponding to natural disasters, such as earthquakes, tsunamis, and major
typhoons due to global warming, as well as development of energy infrastructure andmeasures to make it more resilient

MediumMediumExpanding energy and petrochemical markets and environmental and safety-related
investments in Southeast Asia

Large

Large

Declining petroleum tank maintenance work due to lower demand for oil

MediumMediumDecreasing number of field workers and aging workforce reduces responsivenessMediumLarge

Real Estate Business

Degree of business and financial impact

Content
Opportunities
リスク
Risks

Short-term

Medium to longterm

Government support for carbon neutral initiatives

Small

MediumDeclining value due to aging of buildings

Small

Medium©ISHII IRON WORKS CO.,LTD. All rights reserved.

8

Company Management Policies

Approach to our business portfolio

Business growth potential

Medium-term policy

Steel
Structure
Business

Make proactive investments to drive sales andprofit growth




Real
EstateBusiness

Steel Structure
Business

New
construction

Steel Structure
Business

Maintenance

Secure profitability base through stable receipt of orders for tankmaintenance work
Participate in the carbon neutrality market
Deepen our presence in Southeast Asia, where energy infrastructure
investment is growing

Secure stable long-term profitability by adding
high value to rental properties

Increased value and redevelopment to improve profitability

Sales composition of the Steel Structure Business

Sales composition of the Steel Structure
Business in Japan and overseas

Overseas

RealEstateBusiness

30%

New
construction
Approx. 40%

Overseas

35% Japan

Japan

65%

70%

FY2023Medium-term

MaintenanceApprox. 50%
Other
Approx. 10%

Current status

Medium-term

Stability of profitability*The size of each circle represents the scale of sales©ISHII IRON WORKS CO.,LTD. All rights reserved.

9

Company Management Policies

Medium-term policies and investments by business
Steel Structure
Business

Steel Structure
Business

New construction

Maintenance Participating in new energy markets
through carbon neutrality in Japan

Strategy

Investment

 Participating in energy andpetrochemical markets in Southeast
Asia

 New energy-related capital
investment
 R&D for large tanks

 Securing stable profitability
by strengthening
competitiveness Introducing labor-saving andefficiency-enhancing
equipment Training engineers andtechnicians

Real EstateBusiness Further improving profitability by
redeveloping company-owned
real estate, etc.
 Preventing loss of value by
maintaining existing properties Redeveloping the Haneda
district

 Conducting large-scale repair
work at existing properties
 Constructing new solar power
generation facilities©ISHII IRON WORKS CO.,LTD. All rights reserved.

10

Company Management Policies

Cash flows during the period of the Medium-term Management Plan
Cash inBreakdown of investments
and progress

Cash out

Capital investment

Investment
Procuring funds

1.6 billion yen

1 billion yen

1.
2.
3.





1 billion yen

Stable cash management through long-term fixedrate working capital loans

Steady investment based on the medium- to longterm growth investment policy: “investment ingrowth with a target of about 5% of net sales toincrease corporate value”

Haneda district redevelopment plan
Renewal of production facilities at
Haneda Branch
Renewal of facilities at Headquarters andHaneda Branch(IT, business environment improvement)

Strategic investments

500 million yen
Returning profits
to shareholders
1 billion yen

Operating CF

1.6 billion yenIn addition to stable Real Estate Businessprofitability, the Company continues to improve theprofitability of the Steel Structure Business.



Dividends for FY2022 was 60 yen per share.
Dividends for FY2023 will increase by 10 yen to 70
yen. In the final year of the medium-term
management plan (FY2024), a dividend payout ratioof around 30% is targeted (expected dividends: 70
yen)
Conduct share buybacks in 2022 and 2023

New energy-related capital investment(Low-temperature tank construction-related
facilities, etc.)

Infrastructure enhancement

100 million yen
Developing human resources, developing new
products, deepening existing technologies,
updating systems, addressing sustainability, etc.

©ISHII IRON WORKS CO.,LTD. All rights reserved.

11

Company Management Policies

Policy for improving PBR (1)ROE, PBR, and Stock PriceManaging cost of capital with WACC

ROE

(%)

PBR

(times)10

Current
assessment

 The Company has long endeavored toproperly understand its cost of capital,
and to use that knowledge informulating Medium-term Management
Plans, to make important investment
decisions and so forth.

 Although cost of capital is notdisclosed, it is calculated using theweighted average cost of capital(WACC) method.

1.2

1.04

9
8
7

7.52

0.98

1

8.47

0.81

6

5

0.72

0.8

6.34

0.6

5.48
0.4

4
3
Avg.
stock
price
(yen)

0.2
FY2020

FY2021

FY2022

FY2023

2,261

2,688

3,000

2,637

©ISHII IRON WORKS CO.,LTD. All rights reserved.

12

Company Management Policies

Policy for improving PBR (2)Improving ROE
Policiesandtargets

Policies

Securing a stable profitability
base and improving capitalefficiency

Targets

Improving PER
Responding to changes in thebusiness environment, building a
new business foundation, andpromoting growth strategies

ROE: 8%

PER: 12.5 times
Increase in PBR

Initiatives
anddisclosure

Initiatives

Disclosure

1.

In the short term, improving capitalefficiency through share buybacks

2.

In the medium- to long-term, paying
stable dividends

3.

Securing stable profitability basedon the basic policy of the Mediumterm Management Plan in eachbusiness

1.

2.

3.

Responding to mid- to long-termchanges in the Company's businessenvironment, including participation in
the carbon neutral market
Steadily pursuing medium- to longterm growth strategies through growthinvestments based on cash flow plan
Strengthening disclosure of the above
initiatives

Providing explanations at financial results presentations at the end of each fiscal year, etc.,
and disclosing the relevant materials on the Company's website©ISHII IRON WORKS CO.,LTD. All rights reserved.

13

2

Progress of Medium-termManagement Plan and
Future Strategies©ISHII IRON WORKS CO.,LTD. All rights reserved.

14

Progress of Medium-term Management Plan and Future Strategies

Progress of the Medium-term Management PlanIn FY2024, although it will be difficult to reach our net sales target, the Company expects to make progress toward reaching
our operating income target thanks to accumulating profits during the period(millions of yen)

Current Medium-term Management Plan

Net sales(millions of yen)

Operating income

14,00012,0003,000
10,445

11,011

11,121

11,00010,000

2,000

8,000
6,000

1,218

1,300

1,321

1,500

1,066
1,000

4,000

500

2,000
0

2,500

FY2021 (Actual)

FY2022 (Actual)

FY2023 (Actual)

FY2024 (Forecast)

ROE

8.5%

5.5%

6.3%

8.0% or higher

ROIC

5.9%

7.4%

4.7%

6.5%

0

©ISHII IRON WORKS CO.,LTD. All rights reserved.

15

Progress of Medium-term Management Plan and Future Strategies

Progress of the Medium-term Management Plan’s basic policy
Basic policy

Actual performance to date and future initiatives

Lowtemperaturetank

Accumulate orders and profit bydifferentiation throughenhancement of engineering
capabilities

Maintenance

Secure orders and profit bydifferentiation through service
capabilities

Domestic

Steel
Structure
Business
Overseas

Leverage service andengineering capabilities gainedin Japan and strengthen
collaboration with local
subcontractors

New Business

Enrich our existing engineering
capability to develop into thenew market related with steel
structure business

Real Estate Business

Promote the use of former
material storage yards, etc.
Management Infrastructure

Establish robust
management structure
Develop human resources
for next-generation
Promote SDGs initiatives••

Delivered Japan’s largest (24,000 tons) low-temperature ammonia tank
Collaborated with JFE Engineering Corporation to receive orders for large lowtemperature ammonia tanks for the introduction of fuel ammonia•

Expanded orders of tank maintenance work by deepening relationships withexisting customers and cultivating new customers (FY2023)
Achieved labor savings and efficiency, and secured profitability by introducing andstrengthening automation and mechanization technologies that take advantage ofthe technologies of specialized manufacturers•••

Delivered one of the largest (30,000 tons) low-temperature ammonia tank
Increased orders through collaboration with local companies based on extensive
experience in constructing low-temperature tanks••

Delivered safety equipment for nuclear fuel cycle operation
Renovated existing tanks to support new energy••

Continued to recruit tenants based on the premise of advanced use
Promoted the construction of new solar power generation facilities, etc., andappropriately carried out large-scale repair work

Reviewed administrative authority and budget system, reformed personnel system(personnel evaluation, etc.), strengthened IR, established the Sustainability Promotion
Committee, etc.
©ISHII IRON WORKS CO.,LTD. All rights reserved.

16

Progress of Medium-term Management Plan and Future Strategies

Forecast of the FY2024 business environment*Weather indicators used for comparison
with the previous fiscal year

Steel Structure Business

Domestic

Real Estate Business

Overseas Increase in demand for low-

 Decrease in tank repair work due

to oil refinery closures andconversion to oil depots
 Increase in demand for low-temperature tanks, etc. due toexpansion of the carbon neutral
markettemperature tanks, etc. due toexpansion of the carbon neutral
market

Residences:
Recovery in rental housing
demand in Tokyo

 Increase in demand for energy

Logistics facilities:
Expected increase in vacancy
rates due to continued new
supply in large volumes

and petrochemical product storage
plants due to ongoing economic
growth in the Southeast Asian
region©ISHII IRON WORKS CO.,LTD. All rights reserved.

17

Progress of Medium-term Management Plan and Future Strategies

Strategies and investment plan for FY2024
Steel Structure BusinessStrategy

Improving competitiveness in tankrepair business throughdifferentiation* from competitors



Increasing competitiveness in the
expanding carbon neutral market



Deepening our presence in theenergy infrastructure market inSoutheast Asia, where ongoing
economic growth is expected

Capital participation to strengthen
relationships with local
subcontractors

Redeveloping the Haneda districtConducting large-scale repair work
at existing properties

Developing sales locations inSoutheast Asia

Constructing new solar power
generation facilities*Safety, process, quality, technical service, and price

Reinforcing response to increasein carbon neutrality construction
workIntroducing labor-saving andefficiency-enhancing equipment

Introducing facilities for carbon
neutral construction workInvesting in R&D for larger tanks

Investment

Real Estate Business

Overseas

DomesticFurther improving profitability by
redeveloping company-owned realestate, etc. and preventing loss ofvalue by maintaining existing properties©ISHII IRON WORKS CO.,LTD. All rights reserved.

18

Progress of Medium-term Management Plan
and Future Strategies

Steel Structure
Business

Domestic

Overseas

Participating in the carbon neutral market / Ammonia
Aggressively working to receive orders in the expanding carbon neutral and Southeast Asian markets
Japan

Southeast Asia

Low-temperature tank market

Low-temperature tank market

Market growthpotential◎◎

Market growthpotential

2050
Fuel ammonia

30 million tons/year
2030
Fuel ammonia

3 million tons/year*Market demand scale
figures are taken fromvarious Ministry of
Economy, Trade andIndustry data

Export and popularizationof fuel ammonia mixed
combustion technology

Major customers
Power generators,
marine fuel suppliers,hydrogen carriers, andhydrogen-related
businesses

 Economic growth rate
approx. 5%
 Expansion of energy
infrastructure market
 Increased demand for
petrochemical products
due to higher living
standards

Order receipt strategies

Order receipt strategies



Based on our experience completing numerous low-temperature tankconstruction projects since constructing our first tank in 1966, the Company
aims to receive orders for low-temperature tanks for energy andpetrochemical products in the Southeast Asian region, where economic
growth is anticipated

While developing technology to increase the size of PC external tanktype low-temperature tanks, enter the carbon neutral market throughcollaboration with JFE Engineering Corporation and promote activities
to receive orders for large low-temperature tanks
Newly set up GX Business Division in April 2023 to centrally manage
carbon neutral-related construction and increase orders received©ISHII IRON WORKS CO.,LTD. All rights reserved.

19

Progress of Medium-term Management Plan
and Future Strategies

Steel Structure
Business

Domestic

Participating in the carbon neutral market / Hydrogen Domestic demand forecast***Market demand scale figures are taken from various Ministry of
Economy, Trade and Industry data

Liquid hydrogen

MCH*MCH: Methylcyclohexane (a hydrogen carrier)

2050
2030

2040
2030

Present

3 million tons
Present

12 million
tons

20 million
tons

Tens ofthousandsof tons

Currently verifying
2 million
tons

Major customers

Power generators
Fuel suppliers to vehicles, etc
Steel businesses
Gas suppliers

Our initiatives

 Participating in hydrogen gas sphericaltanks
 Participating in liquid hydrogen tanks
 Participating in MCH tanks©ISHII IRON WORKS CO.,LTD. All rights reserved.

20

Progress of Medium-term Management Plan
and Future Strategies

Steel Structure
Business

Domestic

Participating in the carbon neutral market /SAF and emitted carbon dioxide gas
Sustainable aviation fuel (SAF)

Domestic demand forecast**Market demand scale figures are taken from various Ministry of
Economy, Trade and Industry data

Emitted carbon dioxide gas

2050

2050

2030

6 to 12
million tons

2030

Present

2.5 to 5.6
million tons

23 million
tons

Aviation fuelproducers and suppliers

Present

120 to 240
million tons

Currently verifying

Currently verifying
Major customers(underground storage
volume/year)

Our initiatives
Participating in new construction
and modification work of existing
petrochemical tanks

Major customers
CCS businesses
Businesses that storeliquefied emitted
carbon dioxide gas

Our initiatives
 Participating in spherical tanks to theemitted carbon dioxide gas businesses
both in domestic and Southeast Asianmarket Participating in carbon dioxide gas
spherical tanks at underground storage
bases©ISHII IRON WORKS CO.,LTD. All rights reserved.

21

Progress of Medium-term Management Plan
and Future Strategies

Real EstateBusiness

Acquired DBJ Green Building Certification
Company-owned rental housing property Residence Charmant Tsukishima acquired DBJ Green Building
Certification as a "building with excellent environmental and social awareness."

Property nameResidence Charmant Tsukishima

Location

Tsukishima, Chuo-ku, Tokyo

Completed

January 2004

Usage

Apartments, offices, and nursery schools

Ownership typeCompartmentalized co-ownership (theCompany portion: 43%)

Points earning high evaluation
Exterior view of Residence Charmant Tsukishima(1) Energy and resource
conservation•••(2) Tenant convenience andcomfort

Entrance utilizing natural light•
Use of LEDs in corridors and othercommon areas•
Planning toward long building•
lifespan through repairs

Secured soundproofing ofresidential units
Barrier-free common areas
Arrangement of nurseryschools, guest rooms, etc.

Certificate©ISHII IRON WORKS CO.,LTD. All rights reserved.

22

Progress of Medium-term Management Plan
and Future Strategies

Real EstateBusiness

Construction of new solar power generation facilities
New solar power generation facilities have been
constructed on the rooftop of a property owned andleased by the Company. All electricity generated isconsumed by tenants
This project was selected for the Tokyo
Metropolitan Government-subsidized
Local Production and Consumption Renewable
Energy Enhancement Project
Facility location

Ota-ku, Tokyo

Facility scale

59.4 kW

Annual power generation

75,000 kWh

Schedule
Aug. 2022

Subsidy project approvalJan. 2024

Completion of construction and start ofelectricity sales
The Company's first project subsidized by the Tokyo Metropolitan Government(Higashi-Kojiya Fourth Power Plant)©ISHII IRON WORKS CO.,LTD. All rights reserved.

23

3

Overview of Results for FY2023©ISHII IRON WORKS CO.,LTD. All rights reserved.

24

Overview of Results for FY2023

Consolidated financial results
Increased revenues due to progress in large-scale construction projects in Japan and overseas.
Operating income decreased due to losses in domestic construction projects and an increase in selling, general andadministrative expenses
Earnings
YoY
Versus forecast
FY2022
FY2023
forecast(millions of yen)
(Actual)(Actual)(announced on
AmountRatio
AmountRatio
Nov. 9)Net sales

11,01011,121

+111

+1.0%

11,000(121)(1.1%)

Operating income
Operating income
margin

1,321
12.0%

1,066
9.6%

(255)
–

(19.3%)(2.4P)

950

+116
–

+12.2%+1.0P

Ordinary income

1,469

1,107

(362)

(24.6%)

950+157+16.5%

Profit attributableto owners of parent

595

717

+122

+20.5%

650+67+10.3%

Earnings per share(yen)

161.20198.04+36.84+22.9%

183.18+14.86+8.1%©ISHII IRON WORKS CO.,LTD. All rights reserved.

25

Overview of Results for FY2023

Earnings by business segment
Increased revenues due to progress in large-scale construction projects in Japan and overseas.
Operating income decreased due to losses in domestic construction projects and higher selling,
general and administrative expenses

Steel
Structure
Business

FY2022(Actual)(millions of yen)YoY

FY2023(Actual)AmountRatio

Net sales

9,248

9,322

+74

+0.8%

Segment profit

210

(48)

(258)

–

Orders received

10,703

6,961(3,742)(35.0%)

Real EstateBusiness

Nearly unchanged due to stable rental income(millions of yen)

FY2022(Actual)YoY

FY2023(Actual)AmountRatio

Net sales

1,762

1,798

+36

+2.0%

Segment profit

1,111

1,114

+3

+0.3%

©ISHII IRON WORKS CO.,LTD. All rights reserved.

26

Overview of Results for FY2023

Earnings by business segment
Net sales are trending upward in the Steel Structure Business. Real Estate Business is continuing to record stable rental income.
Net orders received in the Steel Structure Business averaged approx. 10 billion yen per year, although this varied depending on the number oforders received for large projects.
(millions of yen)

Net sales
Steel Structure
Business

1,746

1,747

Net orders received

Segment profit

Real EstateBusiness

1,763

Steel Structure
Business(Steel Structure Business)

Real EstateBusiness

1,798

1,667

14,937

1,111
8,698
6,866

9,248

9,322
1,016

1,123

1,140

1,114
10,703

8,037
8,036
210

6,961
6,559

(228)
FY2019 FY2020 FY2021 FY2022 FY2023
FY2019(28)

78

FY2020

FY2021(48)
FY2022FY2019 FY2020 FY2021 FY2022 FY2023

FY2023©ISHII IRON WORKS CO.,LTD. All rights reserved.

27

Overview of Results for FY2023

Consolidated balance sheet/Cash flows
Free cash flow has improved mainly due to positive Operating cash flow.
(millions of yen)

FY2022(Year-end)

FY2023(Year-end)

Change(millions of yen)

Current assets

8,117

8,131

+14

Cash and deposits

1,233

932

(301)

Non-current assets

12,237

12,320+83

Total assets

20,354

20,451+97

100.0

Current liabilities

5,125

3,868

(1,257)0.0

Non-current
liabilities

4,151

5,020

+869

(100.0)Net assets

11,078

11,563+485(200.0)Total liabilities
and net assets

20,354

20,451+97(300.0)Shareholders’equity to total
assets

54.4%

56.5%

2.1p

(400.0)

ROE

5.5%

6.3%

0.8p

ROIC

7.4%

4.7%

(2.7p)

300.0

Operating CF
Financing CF

Investing CF
Free CF200.0

FY2022

FY2023©ISHII IRON WORKS CO.,LTD. All rights reserved.

28

4

Earnings Forecast for FY2024©ISHII IRON WORKS CO.,LTD. All rights reserved.

29

Earnings Forecast for FY2024

Full-year forecast for FY2024
While net sales are expected to be at the same level as FY2023, operating income is expected to increase due to steady progress indomestic and overseas construction in the Steel Structure Business. ROE and ROIC are also expected to increase due to higher profit(millions of yen)

FY2023(Actual)YoY

FY2024(Forecast)AmountRatio

Net sales

11,121

11,000(121)(1.1%)

Operating income
Operating income margin

1,066
9.6%

1,300
11.8%

+234

–

+22.0%+2.2P

Ordinary income

1,107

1,300

+193

+17.4%

717

900

+183

+25.5%

198.04248.30+50.26+25.4%

ROE

6.3%

8.0%

–

+1.7P

ROIC

4.7%

6.5%

–

+1.8P

Profit attributable to owners ofparentEarnings per share (yen)©ISHII IRON WORKS CO.,LTD. All rights reserved.

30

Earnings Forecast for FY2024

Earnings forecast by segment
Steel Structure
Business

While net sales are expected to be at the same level as FY2023, operating income is expected toincrease due to steady progress in domestic and overseas construction
FY2023(Actual)(millions of yen)YoY

FY2024(Forecast)AmountRatio

Net sales

9,322

9,200

(122)

(1.3%)

Segment profit

(48)

170

218

–

Real EstateBusiness

Expected to be at the same level as the current fiscal year due to stable rental income(millions of yen)

FY2023(Actual)YoY

FY2024(Forecast)AmountRatio

Net sales

1,798

1,800

2

+0.1%

Segment profit

1,114

1,130

16

+1.4%

©ISHII IRON WORKS CO.,LTD. All rights reserved.

31

Earnings Forecast for FY2024

Returning profits to shareholders
Under the basic policy of "aiming to returning profits to shareholders through stable distribution, etc.," the Company paid a dividend of 60
yen per share in FY2022 and plans to pay 70 yen per share in FY2023, increased by 10 yen (total shareholder return ratio of 69.2%). The
Company plans to continue to pay a dividend of 70 yen in FY2024(millions of yen)

Annual dividend per share

80

Dividend payout ratio

50.0%

42.6%
35.3%

25.7%

70

30.2%

25.6%

28.2%

37.2%

60

Medium-term management plan target 30%

50

70
60

40

50

50

50

FY2018FY2019FY2020

40.0%

70

30.0%

20.0%

60
10.0%

30

0.0%
FY2021

FY2022

FY2023*Share buybacks of 85,000 shares (acquisition cost of 243,525 thousand yen) through ToSTNet-3 on May 31, 2022.
*In May 2023, announced share buyback via ToSTNet-3 for (maximum) 150,000 shares and a (maximum) total acquisition cost of
450,000 thousand yen

FY2024（Forecast）©ISHII IRON WORKS CO.,LTD. All rights reserved.

32

APPENDIX©ISHII IRON WORKS CO.,LTD. All rights reserved.

33

Corporate profile
Corporate nameISHII IRON WORKS CO., LTD.

Headquarters

26-11, 3-Chome, Tsukishima, Chuo-ku, Tokyo

Date of establishment

Founded: March 1900 / Incorporated: November 1919

Representative

Hiroaki ISHII, Representative Director and President

Paid-in capital

1,892 million yen (as of March 31, 2023)

Business description

Steel Structure Business, Real Estate Business

Number of employees

139 (consolidated basis, as of March 31, 2023)

Group companies

Subsidiaries: 2, affiliates: 1

Fiscal year end

March 31

Qualifications• ISO9001 Certification• Specific construction business license No.122476(Specific-1) issued by the Governor of Tokyo• First-Class Registered Architect's Office Registration No. 7001 issued by the Governor ofTokyo• Seismic structural calculation programs certified business site for high-pressure gas facilities,
etc. (Class A and Class B)

Stock listings

Tokyo Stock Exchange Standard Market (Securities Code: 6362 / Loan-Transaction Stock)©ISHII IRON WORKS CO.,LTD. All rights reserved.

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Business Segments

Steel Structure BusinessAs a specialist tank manufacturer, Ishii Iron Works Co., Ltd. provides integrated engineering services from design to fabrication,
installation, and commissioning, focusing on products for petroleum refineries, city gas companies, petrochemical companies, andelectric power companies.
ー

Petroleum refineriesーPetrochemical companies

Large floating-roof oil storage tankーCity gas companiesー

LNG satellite terminal

Low-temperature tank and terminal

Other storage tanks

Tsunami-resilient structured tanks(Kesennuma)ーSeismic reinforcement and maintenance

Seismic reinforcement oflarge floating-roof oil storage tank

©ISHII IRON WORKS CO.,LTD. All rights reserved.

35

Business Segments

Real Estate Business
Ishii Iron Works Co., Ltd. develops and manages real estate that meets society’s changing requirements, and provides high value-addedbuildings such as condominiums, logistics facilities, and commercial facilities that take advantage of company-owned land locations. In
recent years, the Company has also entered the solar power generation business.

ー

Condominiums

Suncity Ginza Eastー

Logistics facilities

DS・L・HQ HANEDAーSolar power generation

Higashi-Kojiya Fourth Power Plant©ISHII IRON WORKS CO.,LTD. All rights reserved.

36

120 years of value creation
From “Technological contributions for our country” to “Technological contributions for the world”
From the oil crises to our 100th
anniversary

From our founding period to the end of WW2
In 1900, Takichi ISHII
founded an iron works
shop in Tsukishima,
Tokyo. The shop
developed technologies
related to the energy
industry, including gas andoil, and provided a varietyof equipment

Over many years of research anddevelopment, the Company wasable to provide new equipment andconstruction methods, such as PS(pre-stressed) concrete tanks.
Started real estate leasing business

Founder Takichi ISHII

Low-temperature tank made of PS
concrete. Received many authorizedcertifications, including the Technological
Progress Certification from the JPI(Japan Petroleum Institute) in 1978

Manufactured the first alumina electrolyzer in Japan

1900–1945

1945–1973

1973–2000

From the end of WW2 to the oil crises

Our 100th anniversary
to todayFirmly established a position as a tankand plant manufacturer along with thedevelopment of the domestic energy
industry. Having actively expanded
overseas, the Company has become
known as “ISHII—the tank fabricator.”
Entered into new businesses such as
leisure industry

Promoted thedevelopment of new
facilities for a recyclingoriented society andreal estate for an aging
societyLargest wet seal gas holder in East Asia (atthat time)

Low-temperature tank terminal
completed in Singapore in 2015

Completed construction of one of theJapan’s largest city gas holders in 1995

2000–Present

Completed construction of Japan’s
first five tsunami-resilient structured
tanks in Kesennuma, Miyagi in 2020

Completed construction ofJapan’s largest low-temperatureammonia tank in 2022

©ISHII IRON WORKS CO.,LTD. All rights reserved.

37

The Ishii DNA

Know-how
Know-how accumulated
since our founding in 1900

Since its establishment in 1900, theCompany has been supplying tank andplant facilities essential to customers in key
industries such as petroleum, chemicals,
steel, electric power, and gas throughout
the world. Over the course of more than acentury of history, we have inherited our
DNA of a manufacturing company withtechnological know-how.

Challenge
From EPC operations, which include
planning, engineering, procurement,
and construction, to commissioning
and maintenance operations, we
provide safe, reliable and highly
efficient tanks and plants that meet
our customers’ requirement while
complying with required regulations
and standards within limited cost
and time constraints.

Accumulated
achievements andchallenges

Upbringing
Developing
human resources

Focusing on the three points of (1)improving problem-solving skills,(2) improving communication skills,and (3) improving sensitivity
backed by experience andqualifications, we develop global
human resources.

©ISHII IRON WORKS CO.,LTD. All rights reserved.

38

Business results
Net sales(millions of yen)

12,00010,445

Operating income(millions of yen)

11,01011,121

1,600

1,321

9,783

10,000

1,218

1,200

8,533

1,111

1,066

8,000

800

6,000

788

4,000

400
2,000

0

0
FY2019FY2020

FY2021

FY2022

FY2023

FY2019FY2020

FY2021

FY2022

FY2023©ISHII IRON WORKS CO.,LTD. All rights reserved.

39

Disclaimer

Forward-looking statements contained in this document are based on currently available
information and current assumptions regarding uncertain factors that may affect future
results. Accordingly, actual results may differ from these forecasts due to changes invarious factors.

©ISHII IRON WORKS CO.,LTD. All rights reserved.

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