Ishii Iron Works Co., Ltd.

FY2025-FY2027

Medium-term Management Plan
May 9, 2024

INDEX

1

Review of Previous Medium-term Management Plan

2

Formulation of New Management Philosophy System

3

Overview of Medium-term Management Plan
FY2025-FY2027©ISHII IRON WORKS CO.,LTD. All rights reserved.

2

1
Review of Previous Medium-term Management Plan

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

3

Review of Previous Medium-term Management Plan

Results of the previous Medium-term Management Plan
Although net sales fell short of the target due to delays in the completion of large-scale construction projects overseas, operating
income achieved the target due to the completion of large-scale, high-margin projects in Japan and overseas and the impact of the
weak yen on foreign exchange rates. ROE and ROIC also exceeded targets.
*Change ratio for FY2024 compared to the initial targetof the previous Medium-term Management Plan

Net sales

14,000Previous Medium-term Management Plan

Operating income

12,00010,445

11,011

11,121

10,000

3,000
2,500

9,972
(27.7％)

2,000

8,000
6,000

(millions of yen)

1,482
1,218

+5.9%

1,321
1,066

1,500
1,000

4,000

500

2,000

0

0
FY2021

FY2022

FY2023

FY2024

ROE

8.5%

5.5%

6.3%

9.9% +1.9P

ROIC

5.9%

7.4%

4.7%

6.6% +0.1P©ISHII IRON WORKS CO.,LTD. All rights reserved.

4

Review of Previous Medium-term Management Plan

Basic policy initiatives and results
Previous Medium-term Management
Plan initiatives

Results• Promoting technical development for tankconstruction through collaboration with JFEEngineering Corporation, etc.
• Handling larger low-temperature tanks for LNG
satellite terminals• Formed a business alliance with JFE Engineering
Corporation• Delivered large ammonia tanks in Japan• Received orders for CO₂ spherical tanks for
CCS/CCUS• Received orders for Japan’s largest lowtemperature tanks for LNG satellite terminals• Expanding orders for maintenance work by
deepening relationships with existing customers
and cultivating new customers• Achieving labor savings and efficiency, andensuring profitability by introducing andstrengthening automation and mechanization
technologies• Carried out efficient work and secured profitability
by investing resources with a focus on existingcustomers• Handled multiple modification work plans for
retrofitting tanks for new energy• Providing and enhancing sales and informationcollection networks• Strengthening control of partner companies• Developing technologies and services overseas• Delivered large ammonia tanks in Taiwan• Continued orders for low-temperature tanks in Asia
• Promoted multi-skilled workforces among overseas
local staff
Developed managers of partner companies• Collaborated with a Taiwanese design company

Enrich our existing engineering
capability to develop into the newmarket related with the Steel
Structure Business• Delivering safety equipment for nuclear fuel cycle
operation• Delivered safety equipment for nuclear fuel cycle
operation• Participated in the Nuclear Supply Chain Platform

Promote the use of former material
storage yards, etc.

• Carrying out tenant recruitment activities• Promoting new solar power generation facilities• Started leasing parking lots
• Newly constructed Omori-Minami First Power Plant
and started selling electricity

Establish a robust management
structure⚫ Develop human resources for the
next generation⚫ Promote SDGs initiatives

Reviewing administrative authority and budget
system, reforming personnel system (personnel
evaluation, etc.), strengthening IR, establishing the
Sustainability Promotion Committee, etc.

• Started carrying out various initiatives• Enhanced PDCA and deepened various challenges• Promoted and strengthened sustainability
management

Basic policy

Lowtemperaturetank

Accumulate orders and profit bydifferentiation throughenhancement of engineering
capabilities

Domestic

Steel
Structure
Business

Secure orders and profit bydifferentiation through service
Maintenancecapabilities

Overseas

New Business

Real Estate Business

Leverage service and engineering
capabilities gained in Japan andstrengthen collaboration with local
subcontractors⚫

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

5

2
Formulation of New Management Philosophy System©ISHII IRON WORKS CO.,LTD. All rights reserved.

6Formulation of New Management Philosophy System

Our management philosophy system
By establishing our PURPOSE, 2030 VISION, and VALUE and achieving both sustainable corporate growth and solutions to social
issues such as the realization of a carbon-neutral society, we will aim to become a company trusted by society.

PURPOSE
SocialSignificance

2030 VISION
Future to be achieved inorder to fulfill our PURPOSE

Realize a sustainable world through the power of oursteel structures

Support our customers’ transition toward the realization of acarbon-neutral society through engineering

Leveraging and deepening legacy

VALUE
Our values (mindset)

As a pioneering manufacturer of tanks in Japan,
we have over 120 years of accumulated
technologies and achievements, as well as arobust production infrastructure.
To meet social needs, we will refine ourengineering and seek to further enhance our
production infrastructure.

Services and manufacturingwith a sincere attitude
We have extensive knowledge of steel
structures and their regulations andstandards, and diligently meet social
needs.

Enterprise
We will not only adapt to social
trends, but also anticipate social
needs with great sensitivity andcontinue to provide useful andinnovative products and services.

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

7

Formulation of New Management Philosophy System“Power of our steel structures” to realize a sustainable world
Inheriting the Ishii DNA, we process “steel,” a sustainable material, to supply “structures (tanks and plant facilities)” that store nextgeneration energy in a resilient, disaster-resistant, and environmentally friendly manner.

(Large-scale)

SteelSpecific
technologies

•
•
•
•
•

Structures

•
•
•
•
•

Joining technology
Welding technology
Structural technology
Inspection technology
Heat treatment
technology

The
Ishii
DNA

Management
technologies

Achievements

Trust

Engineering

Human resources

Over 120 years ofaccumulated
achievements as apioneering manufacturerof tanks in Japan

Robust customer basebuilt on longstanding
relationships of trust• Integrated engineering from design tofabrication, installation, and commissioning• Advanced welding technology to take maximum
advantage of the material value of steel

A training system that enables employees
to learn about engineering, regulations,and standards from multiple perspectives
through extensive growth opportunities

SafetyQuality
Cost
DeliveryService

Understanding of laws andregulations
Support of our customers’ compliance with laws
and regulations through our extensive
knowledge of various related regulations andstandards©ISHII IRON WORKS CO.,LTD. All rights reserved.

8Formulation of New Management Philosophy System

2030 VISION

Support our customers’ transition toward the realizationof a carbon-neutral society through engineering
Providing problem-solving manufacturing and solutions
by staying abreast of our customers’ changes©ISHII IRON WORKS CO.,LTD. All rights reserved.

9Formulation of New Management Philosophy System

Our customers’ business environment
Our customers have the challenge of promoting carbon-neutral initiatives
while safely maintaining existing infrastructure.

Transition period / Promotion challenges
Promotion of carbon
neutrality

Transition period

Promotionof carbon
neutrality

Petroleum industry⚫ Requires large-scale⚫ Measures to address aging ofinvestment

existing infrastructure⚫ Takes time to be⚫ Lack of resources to maintainAcceleratingenergy shift
trendElectric
power
industry

Our maincustomers

implemented in society andbe made profitable

existing infrastructure

Chemicalindustry

Customer needs related to our business⚫ Maintenance of existing infrastructure and facilities during thecarbon-neutral transition period

Maintenance ofexisting infrastructure⚫ New construction of storage tanks and renewal of existing tanks

Gas industry

Tradingcompanies

through modification at each stage of the energy shift(petroleum → LNG → ammonia and hydrogen)⚫ New construction of storage tanks for CO₂ generated by ourcustomers’ business and CO₂ storage tanks for the realizationof CCUS©ISHII IRON WORKS CO.,LTD. All rights reserved.

10Formulation of New Management Philosophy System

Our strengths and their application to customer needs
We will acquire new orders by leveraging our strengths and applying them to customer needs.

Customer needs and the application of our strengths

Cultivated strengths

Integrated production
system for design,
fabrication, and construction

1

As a “manufacturer,” we have our own integrated production
system from design to on-site construction, which enables us torespond to customer needs by promptly and smoothly
communicating them to design and production processes.

2

As a “primary vendor,” we can communicate directly with ourcustomers to identify their issues and needs, and then develop
solutions with the collaboration of the production and R&D
sections.

3

Based on the “extensive know-how and product reliability”
gained from over 120 years of accumulated technologies andachievements in Japan and overseas, we can provide supportand services to resolve issues and meet the new challenges
facing customer companies.

1

Core Competence32

Know-how based on
extensive
delivery experience

Collaborative ability of
the R&D andproduction sections©ISHII IRON WORKS CO.,LTD. All rights reserved.

11

3
Overview of Medium-term Management Plan
FY2025-FY2027©ISHII IRON WORKS CO.,LTD. All rights reserved.

12Medium-term Management Plan FY2025-FY2027

Positioning of the new Medium-term Management Plan
We will support our customers’ transition toward the realization of a carbon-neutral society through engineering.

FY2022-FY2024

FY2025-FY2027

FY2031Long-term
targets
Previous Medium-termManagement Plan

New Medium-termManagement Plan

2030
VISION

Preparatory phasefor the transformation
period through the recognition ofsocial issues and the reinforcementof our profitability baseTransformation period
to resolve customer issues
and contribute to acarbon-neutral society

Support our customers’ transition
toward the realization of a carbonneutral society throughengineering©ISHII IRON WORKS CO.,LTD. All rights reserved.

13

Medium-term Management Plan FY2025-FY2027

Management targets
During the new Medium-term Management Plan period, we will aim for growth centered on changing the profitability base of the Steel
Structure Business.
Steel Structure
Business

Real EstateBusiness(millions of yen)

New Medium-term Management Plan
13,35011,600

9,972

1,482
8,146

300
300

1,153
1,153

1,150
1,150

OperatingincomeROIC
Net orders
received

Net sales

11,500

1,710
560
560
1,150
1,150

1,850

1,800

FY2024 (Actual)
ROE

1,450

329
329

1,826
Net sales

9,800

OperatingincomeFY2025 (Forecast)

Net sales

OperatingincomeFY2027 (Planned)

9.9%

8.0% or more

6.6%

6.5% or moretotal for the previous Medium26,222 million yen (cumulative
term Management Plan period）

50,000 million yen（cumulative total for the new Medium-term Management Plan period）©ISHII IRON WORKS CO.,LTD. All rights reserved.

14

Medium-term Management Plan FY2025-FY2027

Basic policy
Change of businessportfolio

Improving PBR

1

5

2

Promotion of business
related to carbon neutrality

3

Enhancement of the stabilityof the Real Estate Business

New Medium-termManagement Plan
FY2025-FY2027

Capital allocation

4

Capitalallocation
Promotionof sustainability
management©ISHII IRON WORKS CO.,LTD. All rights reserved.

15

Medium-term Management Plan FY2025-FY2027(1) Change of business portfolio
Reorganize the Steel
Structure Business
Headquarters

While addressing the maintenance and modification of existing products, we will transition to a systemcapable of addressing carbon neutrality projects and change the profitability base.

Diagram of profit growth by business segment

GX Business(SteelStructure
Business)
R&M Business(SteelStructure
Business)
Real EstateBusiness

FY2024FY2027

FY2031GX Business
Mainly projects related to lowtemperature andhigh-pressure storage tanks
and storage plants

R&M
Business*
Mainly projects related tonormal temperature
and atmospheric storage
tanks

Maintenance ofexisting infrastructure

Promotion ofcarbon neutrality• New construction of
low-temperature LNG
tanks for fuelconversion• New construction of
low-temperaturetanks for fuelammonia• New construction of
spherical tanks for
petrochemical
feedstock• New construction of
CO₂ spherical tanks
for CCS and CCUS

Maintenance,
renovation,and modification of
petroleum tanks, etc.

New construction oftanks for SAF, e-Fuel,and MCH storage andmodification of existingtanks*R&M=Renewal & Maintenance©ISHII IRON WORKS CO.,LTD. All rights reserved.

16

Medium-term Management Plan FY2025-FY2027(1) Change of business portfolio
We will expand carbon neutrality projects in both the GX and R&M businesses to change the profitability base.
Existing and petroleum
tank projects

Diagram of changes in project composition in terms of operating income

R&M Business

GX Business
FY2025

FY2027

FY2031

Overseas
Petrochemical
lowsphericaltemperature LNG
storage tanks
facilities

Overseas
lowLNG
temperaturefacilities

Overseas
lowtemperaturefacilities

9 : 1

Ammonia
low-temperaturestorage tanks

Ammonia
low-temperaturestorage tanks

FY2025

4 : 6

LCO₂
spherical storage tanks

Carbon neutrality
projects

FY20272 : 8⚫

Strategically promote technical development and theacquisition/development of human resources to meet theneeds of carbon neutrality projects⚫

Take advantage of our strengths to also work on largescale projects overseas and meet the needs of theSoutheast Asian market, while putting in place afoundation for sales and income

FY2031

General repair and modification work

New construction andmodification for
SAF/MCH/e-Fuel

6 : 4

New construction and modification for
SAF/MCH/e-Fuel

4 : 6

General repair and modification work

General repair andmodification work

10 : 0⚫

Enhance management by area managers to closely
monitor customer needs, receive orders for repair andmodification work projects, and meet the needs forcarbon neutrality projects⚫

Promote the development of technologies and humanresources required for the GX business while providing astable foundation for sales and income©ISHII IRON WORKS CO.,LTD. All rights reserved.

17

Medium-term Management Plan FY2025-FY2027(2) Promotion of business related to carbon neutrality
We will organize three development committees and promote measures to improve engineering capabilities and secure resources.
Organizations to promote

Improveengineering
capabilities

Expansion of carbon
neutrality projects

Upgrade to morecompetitive technologies(welding technology, newconstruction methods, etc.)

Technical
Development
Committee

Continuously recruit anddevelop designers and on-site
supervisors

Human
Resources
Development
Committee

Develop lacking external
resources (plant and on-site)

VendorDevelopment
Committee

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

18

Medium-term Management Plan FY2025-FY2027(2) Promotion of business related to carbon neutrality
Each committee will collaborate to meet customer needs and realize our vision.

GX
Technical Development
Committee
Improveengineering
capabilities

Human Resources
Development Committee
Improveengineering
capabilities⚫ Establish welding and inspection
technologies to increase the size of tanks⚫ Establish welding technology as well asassembly and construction methods toimprove efficiency⚫ Establish welding and inspection
technologies to improve efficiency⚫ Develop and increase the number ofdesigners and on-site supervisors⚫ Enhance management by area managers⚫ Develop versatile tank engineers who can
support area managers⚫ Enhance our plants and expand plantvendors⚫ Expand on-site vendors⚫ In-house production of advanced
technologies to promote differentiation⚫ Expand local vendors⚫ Transition internal resources to the GX
business

Secure resources

Vendor Development
Committee
Secure resources

R&M©ISHII IRON WORKS CO.,LTD. All rights reserved.

19

Medium-term Management Plan FY2025-FY2027(3) Enhancement of the stability of the Real Estate BusinessWe will further enhance our profitability base by promoting newly developed businesses.

Strategy

Conceptual drawing of warehouse/distribution center construction⚫ Further improving profitability by redeveloping company-owned
real estate, etc.
⚫ Preventing loss of value by maintaining existing properties

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

Overview of the Haneda district redevelopment plan
Item

Content

Location

Higashi-Kojiya, Ota-ku, Tokyo(Close to Haneda Airport and the Metropolitan
Expressway)

Lot area

Approx. 2,100 m²

Present
condition

Rental parking lot (flat)

Use
Remarks

Metropolitan
Expressway

Planned site

HanedaAirportWarehouse/distribution center, etc.

To be constructed to design specifications inaccordance with the requests of the tenant companies.
Currently seeking tenant companies.

Map: from the Geospatial Information Authority of Japan website©ISHII IRON WORKS CO.,LTD. All rights reserved.

20

Medium-term Management Plan FY2025-FY2027(4) Capital allocation
Cash inBreakdown ofinvestments

Cash out

Capital investment

1.0 billion yen⚫

Procuring funds

Investment

1.5 billion yen

3.5 billion yen

Agile procurement throughcommitment line agreements, etc.

Haneda district redevelopment plan
Renewal of facilities at Headquarters andHaneda Branch, etc.
Strategic investments

2.0 billion yen
Reinforcement of Haneda Plant
New energy-related capital investment, etc.
Human resources
development investment

Returning profits
to shareholders

Operating CF

3.0 billion yen⚫

In addition to stable Real EstateBusiness profitability, the Company
continues to improve the profitability of
the Steel Structure Business1.0 billion yen

300 million yen
Development of engineers, etc.
Infrastructure enhancement
investment

200 million yen⚫

Dividend payout ratio exceeding
30%

Developing new products, deepening existing
technologies, updating systems, addressing
sustainability, etc.

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

21

Medium-term Management Plan FY2025-FY2027(4) Capital allocation (Returning profits to shareholders)
Based on the Company’s basic policy to “return profits to shareholders stably while strengthening its internal reserves for future
growth,” we aim to return profits to shareholders with a target dividend payout ratio exceeding 30%.
Annual dividend per share

(yen)

120

37.2％

Dividend payout ratio
40.0%

35.3％

110

31.4％
100
90

25.6％

26.2％

25.7％

Medium-termManagement Plan target“Exceeding 30%”

30.0%

80
20.0%
70

90

60
50
40
30

50
FY202060

60

FY2021

FY2022

90
10.0%

70

FY2023

FY2024FY2025(Forecast)

FY2026(Target)FY2027(Target)0.0%*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 (total acquisition cost of 441,300 thousand yen) through ToSTNet-3 on May 31, 2023.
©ISHII IRON WORKS CO.,LTD. All rights reserved.

22

Medium-term Management Plan FY2025-FY2027(5) Improving PBRROE, PBR, and Stock PriceManaging cost of capitalwith 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.

1.2

8
7

9.90

1.04

9

0.98
7.52

8.47
0.72

0.78

6.34

5

0.6

5.48
0.4

4
3
Avg. stock
price (yen)

0.8

0.81

6

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

1

0.2
FY2020

FY2021

FY2022

FY2023

FY2024

2,261

2,688

3,000

2,637

2,821

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

23

Medium-term Management Plan FY2025-FY2027(5) Improving PBR

Policiesandtargets

Initiatives
anddisclosure

Improving ROE

Improving PER

Policies

Securing a stable profitability base andimproving capital efficiency

Responding to changes in the businessenvironment, building a new businessfoundation, and promoting growthstrategies

Targets

ROE: 8.0%

PER: 12.5 times

1.

In the short term, improving capitalefficiency through agile sharebuybacks

2.

In the medium- to long-term,
paying stable dividends inaccordance with growth

Initiatives
3.

Disclosure

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

1.

Responding to medium- to long-termchanges in the Company’s businessenvironment, including participation inand monetization of the carbon
neutrality market

2.

Steadily pursuing medium- to long-term
growth strategies through growthinvestments based on cash flow plan

3.

Strengthening disclosure of the above
initiatives

Increase in
PBR

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.

24

Medium-term Management Plan FY2025-FY2027

Promotion of sustainability management
We will identify five materialities based on the Basic Policy on Promotion of Sustainability. We will also set indicators and disclose progress.

Basic Policy on Promotion of Sustainability

Contribute through business

Foundation to support our business(Business system)(Corporate system)
Main related SDGs

Establish a safe and secure society
Promote digital transformation andsecure cybersecurity
Address climate change (contribute to a
decarbonized society) and protect the
global environment

Main related SDGs

Provide a rewarding work
environment and respect humanrights in business activities

Maintain a firm governancestructure©ISHII IRON WORKS CO.,LTD. All rights reserved.

25

Medium-term Management Plan FY2025-FY2027

Promotion of sustainability management
Contribute through business (Business system)
Materiality

Establish a safe
and secure society

Promote digitaltransformation andsecure cybersecurity

Address climatechange (contributeto a decarbonizedsociety) and protect
the global
environment

Social issue

TargetAction plan

• Providing a stable supply of energy
and safe and secure social
infrastructure• Providing disaster-resilient industrial
equipment• Meet storage needs required when switching energies for carbon
neutrality• Meet needs for disaster preparedness/mitigation and national
resilience in Japan and overseas• Participate in business related to carbon neutrality in Japan andoverseas• Develop sales toward tsunami-resilient structured tanks and seismic
retrofitting work, survey customer needs, and develop new productsthat are disaster-resilient

Contributing to the development ofsustainable communities

Contribute to the development of sustainable communities through theleasing of real estate that meets customer needs• Promote the effective use of the Haneda district• Continue to lease to geriatric facilities and daycare centers

Coping with aging population and labor
shortage

Realize automation and labor savings through technical development

Promote the development of new construction methods and automation
technologies for on-site labor savings

Promoting digital transformation• Aim for sustainable growth in the Steel Structure and Real Estatebusinesses by promoting DX• Expedite management decisions through the further utilization of actual
work data• Promote the enhancement and utilization of core systems as well as IT
infrastructure development• Further utilize actual work data

Securing cybersecurity

Realize cybersecurity management

Establish cybersecurity in compliance with “Cybersecurity Management
Guidelines Ver 2.0” and "Information Security Guidelines for SMEs [3rdEdition]”Measuring and reducing GHG
emissions

Understand and continuously reduce GHG emissions

Understand company-wide GHG emissions and set reduction targets

Improving energy efficiency

Improve branch, plant, and on-site energy efficiency• Survey low-energy, high-efficiency equipment• Introduce LED lighting, high-efficiency air conditioning, and energyconserving equipment

Popularizing and introducing
renewable energy generation

Constructing more solar panels• Promote solar panel facilities on company-owned real estate properties• Promote the use of renewable energy generation at our branches

Developing technologies that
contribute to the realization of “newenergy and a hydrogen society”

Meet storage needs required when switching energies for carbon
neutrality

Participate in business related to carbon neutrality in Japan and overseas

Operating an environmental
management system

Minimize our environmental impact through the reliable operation of anenvironmental management system

Reliably operate and regularly review the environmental management
system©ISHII IRON WORKS CO.,LTD. All rights reserved.

26

Medium-term Management Plan FY2025-FY2027

Promotion of sustainability management
Foundation to support our business (Corporate system)
Materiality

Social issue
Respecting human rights

Provide a rewarding
work environmentand respect humanrights in businessactivities

Maintain a firm
governance structure

Developing and recruiting humanresources• Promoting diversity and inclusion• Improving labor productivity

TargetPromote business with companies that respect humanrights and address environmental management throughout
our business domain and supply chain

Aim to materialize a corporate climate in which a diversity ofhuman resources feel rewarded and comfortable whileworking, competing, and taking on challenges

Action Plan
• Declare a basic policy that includes a commitment to respect human rights• Carry out human rights due diligence processes• Review processes to ameliorate adverse human rights impacts
Promote career and skills development for employees• Promote work style reforms, employee engagement, and women’s greater participation in the workplace• Provide a structure to address the Act on Comprehensively Advancing Labor Measures, and Stabilizing the
Employment of Workers, and Enriching Workers' Vocational Lives (Power Harassment Prevention Act)

Ensuring health and safety during labor

Aim for accident-free branches and sites• Promote branch and on-site safety patrols as well as safety and health education for subcontractors• Continue to inquire about customer satisfaction during on-site patrols

Promoting health management

Promote employee health by putting health management
and health investment into practice and recruit humanresources to increase corporate value• Promote physical health (address individuals with health abnormalities, hold health awareness seminars, offer healthcounseling, etc.)• Promote mental health (carry out stress checks and address high-stress individuals)• Enroll employees in GLTD (Group Long-Term Disability Insurance)

Sophisticating corporate governanceand governing organizations• Address revisions of the corporate governance code
• Revise and release corporate governance guidelines

Understanding and managing
company-wide risks

Understand and address company-wide risks through the Risk Management Committee

Appropriately disclosing information

Ensuring fair competition and businesspractices

Based on our company motto, business objectives, andmanagement philosophy, establish a management structure
for transparent, fair, prompt, and decisive decision-making
given the standpoints of all stakeholders, and tocontinuously enhance corporate governance in order toachieve sustainable growth and enhance corporate value
for the Company over the medium- to long-term.

• Enhance the listing of various disclosure documents and enhance dissemination through our website• Enhance IR (carry out financial results presentations) and carry out dialogues with institutional investors and major
shareholders• Carry out in-house surveys and training sessions related to the Act against Delay in Payment of Subcontract
Proceeds, etc. to Subcontractors and the Act on Prohibition of Private Monopolization and Maintenance of Fair Trade• Prepare and disclose a basic procurement policy and sustainable procurement guidelines, and carry out dialogues
with suppliers

Contributing to local societies• Continue to participate in the National Organization of Employment Assistance Businesses (PJ to promote the reemployment of prisoners), continue to cooperate in continuous employment support programs for people withdisabilities, continue to participate in the Chuo City Industry and Culture Exhibition (Heso-ten)Complying with laws and regulations aswell as international standards

Continue to disseminate information and hold seminars on compliance©ISHII IRON WORKS CO.,LTD. All rights reserved.

27

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.

28