Ishii Iron Works Co., Ltd.

Second Quarter of FY2024

Financial Results
Presentation Materials
November 28, 2023

INDEX

1

Overview of Second Quarter Results for FY2024

2Earnings Forecast for FY2024

3

Progress Made in the Implementation of BusinessStrategies

4

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

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1

Overview of Second Quarter Resultsfor FY2024©ISHII IRON WORKS CO.,LTD. All rights reserved.

3

Overview of Second Quarter Results for FY2024

Consolidated financial results
Decreased revenues due to lower sales in the Steel Structure Business.
Operating income increased partly due to the absence of the impact of the provision for loss on construction contracts
recorded in the previous fiscal year in the Steel Structure Business.
(millions of yen)

2Q of FY2023(Actual)YoY

2Q of FY2024(Actual)AmountRatio

Net sales

4,486

4,155(331)(7.4%)

Operating income
Operating income margin

253
5.7%

502
12.1%

249
–

98.3%
6.4P

Ordinary income

369

660

290

78.5%

Profit attributable toowners of parent

236

483

247

104.8%

Earnings per share(yen)65.09

138.3773.28–©ISHII IRON WORKS CO.,LTD. All rights reserved.

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Overview of Second Quarter Results for FY2024

Earnings by business segment
Steel Structure
Business

Decreased revenues due to sluggish growth in overseas construction projects because of decreased large-scale
projects, although domestic construction projects were firm.
Segment profit improved significantly despite an operating loss partly due to an increase in general andadministrative expenses.

2Q of FY2023(Actual)(millions of yen)YoY

2Q of FY2024(Actual)AmountRatio

Net sales

3,588

3,241(347)(9.7%)

Segment profit

(279)

(72)

207

–Orders received

3,145

4,149

1,004

31.9%

Real EstateBusiness

Stable rental income. Profit increased due to a decrease in operating expenses.

(millions of yen)

2Q of FY2023(Actual)YoY

2Q of FY2024(Actual)AmountRatio

Net sales

897

913

151.8%

Segment profit

532

575

427.9%©ISHII IRON WORKS CO.,LTD. All rights reserved.

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2Earnings Forecast for FY2024©ISHII IRON WORKS CO.,LTD. All rights reserved.

6

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 maintain our previous forecast
due to the increased profit in the Steel Structure Business partly owing to the absence of the impact of the provision for loss onconstruction contracts recorded in the previous fiscal year. ROE and ROIC are also expected to increase due to higher profit.
(millions of yen)

FY2023(Actual)

2Q of FY2024(Actual)

FY2024(Forecast)

FY2023 (Actual) / FY2024 (Forecast)AmountRatio

Net sales

11,121

4,155

11,000(121)(1.1%)

Operating income
Operating income margin

1,066
9.6%

502
12.1%

1,300
11.8%+234–+22.0%+2.2P

Ordinary income

1,107660

1,300+193+17.4%

Profit attributable toowners of parent

717

483

900

+183

+25.5%

198.04138.37248.30+50.26+25.4%

ROE

6.3%

–8.0%

–+1.7P

ROIC

4.7%

–

6.5%

–+1.8P

Earnings per share (yen)©ISHII IRON WORKS CO.,LTD. All rights reserved.

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Earnings Forecast for FY2024

Earnings forecast by segment
Steel Structure
Business(millions of yen)

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

2Q of FY2024(Actual)

FY2023 (Actual) /FY2024 (Forecast)

FY2024(Forecast)AmountRatio

Net sales

9,322

3,241

9,200(122)(1.3%)

Segment profit

(48)

(72)

170

218

–

Real EstateBusiness(millions of yen)

Expected to be at the same level as the previous fiscal year due to stable rental income

FY2023(Actual)

2Q of FY2024(Actual)

FY2024(Forecast)

FY2023 (Actual) /FY2024 (Forecast)AmountRatio

Net sales

1,798913

1,8002+0.1%

Segment profit

1,114575

1,13016+1.4%©ISHII IRON WORKS CO.,LTD. All rights reserved.

8Earnings Forecast for FY2024

Segment performance trends and forecasts for FY2024
The Steel Structure Business is expected to improve its profit significantly despite a decrease in net sales. The Real EstateBusiness is expected to post increases in both net sales and profit owing to stable rental income and a decrease in operating
expenses. Toward the end of the fiscal year, both net sales and segment profit are expected to make a good progress, enabling
the Company to achieve its earnings forecast (net sales of 11.0 billion yen and operating income of 1.3 billion yen). Net orders
received in the Steel Structure Business are progressing at a faster pace than the previous fiscal year.
(millions of yen)

Steel Structure
Business

1,763

Steel Structure
Business

Real EstateBusiness

1,798

1,746

8,698

9,248

8,037

1,123

9,322

FY2023

FY2024

14,937

1,114575
78210(28)
FY2020(48)
FY2021

FY2022

FY2023(72)

1H (Actual)

FY2022

1H (Actual)

3,241
FY2021

1,111
1,140913

FY2020Real EstateBusiness

2H (Forecast)

2H (Forecast)

1,747

Net orders received(Steel Structure Business)

Segment profit

Net sales

10,703
6,961

6,559

4,149
FY2020

FY2021

FY2022

FY2023 2QFY2024

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

9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 70 yen per share in FY2023, increased by 10 yen (total shareholder return ratioof 69.2%). The Company plans to continue to pay a dividend of 70 yen in FY2024.
Annual dividend per share(yen)80

Dividend payout ratio
50.0%

42.6%
35.3%

25.7%

70

30.2%

25.6%

28.2%
40.0%

37.2%

60

Medium-term management plan target 30%

30.0%

50

70

70

20.0%

60
40

30

50

50

50

FY2018FY2019FY202060
10.0%

FY2021

FY2022*Share buybacks of 85,000 shares (acquisition cost of 243,525 thousand yen) through ToSTNet-3 on May 31, 2022.
*Share buybacks of 150,000 shares (acquisition cost of 441,300 thousand yen) through ToSTNet-3 on May 31, 2023.

FY2023

FY2024(Forecast)

0.0%©ISHII IRON WORKS CO.,LTD. All rights reserved.

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3

Progress Made in the Implementation ofBusiness Strategies©ISHII IRON WORKS CO.,LTD. All rights reserved.

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Progress of Business Strategies

Participation in the carbon neutrality market - Our initiatives and achievements
Fuel ammonia

Market trend

Our initiatives

Recentachievements•

The government aims to introduce 3 million tons/year by 2030.

•Domestic electric power companies announced promotion of introduction.

•Major petroleum and petrochemical companies are also considering itsintroduction to their own power generation facilities.

•Consideration is under way to use it for vessel fuels, etc. to reduce carbon
tax burden.

•Collaboration with JFE Engineering Corporation to conduct joint sales
and marketing activities.

•

Conducted technological development for the construction of a largeammonia tank.

•Penetration into overseas ammonia markets in addition to Japanesemarket.

Received orders from each domestic and overseas petrochemicalcompany for one of the largest low-temperature ammonia tanks in Japanand overseas, in operation from 2022 or later.

30,000-ton low-temperatureammonia tank constructed in Taiwan.
The largest low-temperatureammonia tank in the Southeast
Asian region.

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

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Progress of Business Strategies

Participation in the carbon neutrality market - Our initiatives and achievements
Capture and storage/ + effective utilization of carbon dioxide(CCS/CCUS)•The government aims for 13 million tons/year of underground storageby 2030.

•It has selected seven “Advanced CCS Project Areas.”•Received orders for and constructed spherical tanks for domestic CCS
demonstration and spherical tanks for liquefied carbon dioxide derived
from waste plastic.

•Promoted technological development for the construction of large
spherical tanks.

•Received an order for Japan‘s first spherical tank for CCS
demonstration, currently under construction, to be operational fromFY2024 or later.

Market trend

Our initiatives

Recentachievements•

Received an order for Japan’s first spherical tanks for liquefied carbon
dioxide derived from waste plastic. Currently under construction, to beoperational sequentially from FY2024 or later.

Currently constructing a total of threespherical tanks for liquefied carbon
dioxide.

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

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Progress of Business Strategies

Participation in the carbon neutrality market - Our initiatives and achievements
Liquefied natural gas (LNG)

Market trend• About 72 million tons of gas is imported annually, mainly as fuelfor power generation and city gas.
• Increasingly adopted by private companies as a carbon-neutraltransition fuel from oil and coal.

Our initiatives• Received orders for and constructed low-temperature tanks for
LNG satellite terminals.
• Promoted technological development for larger low-temperaturetanks for LNG satellite terminals.

Recentachievements

Received orders for and constructed four low-temperature tanks
for one of the largest LNG satellite terminals in Japan from city
gas companies and others, to be operational sequentially in
FY2023 or later.

Received orders for low-temperaturetanks (vertical cylindrical LNG tanks)
from city gas companies, etc., in
response to the introduction of LNG
with less environmental impact.
©ISHII IRON WORKS CO.,LTD. All rights reserved.

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

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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.

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Business Segments

Real Estate BusinessIshii 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.

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

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 PSconcrete. 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.

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The Ishii DNA

Know-how
Know-how accumulated
since our founding in 1900Since 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 whilecomplying 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.

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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

8,5331,111

1,066

8,000

800

6,000788

4,000

400
2,00000
FY2019FY2020

FY2021

FY2022

FY2023

FY2019FY2020

FY2021

FY2022

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

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Disclaimer

Forward-looking statements contained in this document are based on currently available
information and current assumptions regarding uncertain factors that may affect futureresults. 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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